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The
allimrra31
Volume 138

1 financial

lirtitttde

New York, Saturday, February 24 1934.

Number 3583

The Financial Situation
IF THE action of the United States Senate on
Wednesday afternoon in overriding by the margin of a single vote the wishes of President Roosevelt and voting 41 to 40 to amend the Independent
Offices Appropriation bill so as to restore the 15%
cut in the wages of Government employees by July 1
is a disturbing feature (assuming that the House of
Representatives endorses the action of the Senate),
on the other hand decided encouragement is to be derived from the fact that recognition appears to be
becoming general in Washington that one of the
prime needs of the day is to stimulate the flow of
capital and of funds into long-term investments, or
what are termed capital pods as distinguished from
goods for immediate consumption. Statistics show
that in the case of these latter the effect of the long
period of depression has been comparatively slight,
while on the other hand in the case of capital goods
—goods more or less going into permanent use, like
locomotive engines and other things that take a more
or less permanent form—the adverse results have
been very pronounced, the contraction in many instances going to the extent of almost complete
stoppage in the turning out of new goods. It is the
make of this latter class of goods that must be stimulated, if there is to be any real large-scale industrial
revival, and it is the steadily-growing recognition in
various quarters at Washington that this is an imperative requirement that furnishes general ground
for encouragement.
As for the action of the Senate in voting in favor
of the restoration of the old scale of wages of Government employees, this is to be regretted, because it
involves a very considerable addition to the ordinary
disbursements of the Government, while the Government is not yet in condition to assume the added
expense. The total of the pay cut involved is 15%.
and 5%, under the proposal in the Senate, is to be
restored on Feb. 1 and the remaining 10% on July 1.
But the Administration itself had suggested a partial restoration of the cut. This, it is now seen, was
a mistake, and it is not surprising that a spendthrift
Congress, which Will stop at nothing in the way of
expanding Government appropriations, wedded to
the idea that irredeemable paper currency furnishes
an easy means of providing for the cost, should avail
of the opportunity to attempt to get the full amount
of the cut. The Administration plans call for the
restoration of 5% of the cut on Feb. 1 and another
5% on July 1, with the remaining 5% held in abeyance unless the President finds that prices shall have
increased sufficiently to justify this further restoration. Enactment of the Senate proposal would mean




a difference of $63,000,000 in the yearly outgo as
compared with the Administration's own proposal
for a 10% restoration. In other words, the added
amount required under the Administration plan
would be $126,000,000, whereas under the Senate
plan the addition would be $189,000,000.
It was plainly a mistake on the part of the Washington authorities to suggest any cut at all at this
time, and in the circumstances it was to be expected
that the Senate would resolve on the restoration of
the whole of the pay cut instead of only two-thirds
of the amount, especially as newspaper accounts tell
us that Senators and House members would benefit
greatly personally as a result, their salaries being
raised to $10,000 per year from the $8,500 under the
pay cut.
But the President might have known that his expression of a willingness to agree to two-thirds of
the reduction in wages would be made the basis of
an effort to restore the full amount of the cut. Hence
the blame for what has happened must rest in part
upon the President himself. But the President likes
to please, notwithstanding his resoluteness of purpose in many things, and in this instance no doubt
he was under great pressure. Whether in the -end
the President shall have his way or Congress, the
assumption of the added expense involves in either
case a considerable aggregate, whether the amount
be $126,000,000 a year of $189,652,505. On that
account great satisfaction is to be derived from the
fact that on Thursday the Senate, by a vote of 60 to
14, defeated a move to restore the veterans all the
benefits that were precluded under the Economy Act.
PLEASING development, and one freighted
with great promise, is the action taken for
supplying new capital funds to the industries that
have been lying almost dormant in recent periods.
The happenings in that respect have come in connection with the scheme which is under consideration for the establishment of what are termed intermediate credit banks to aid industry. Newspaper
advices from Washington, Tuesday evening, stated
that a series of conferences had been held on that day
at the White House and the Treasury, with the view,
mainly, it would seem, of establishing a new system
of industrial intermediate credit banks, though the
conferences also discussed a number of collateral
questions of equal if not of more importance than the
proposal for establishing the new system of banks,
and it is what transpired in this latter respect that
bears the greatest hope of industrial revival. It
happened, too, that the Advisory Council of the

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Federal Reserve Board was in conference with the
Secretary of the Treasury and the Federal Reserve
Board and gave expression to its views on a number
of important questions which are commanding such
wide consideration and a sound solution of which
will have no small bearing upon the future.
The White House conferences, according to newspaper advices, included separate meetings between
President Roosevelt and Francis M. Law, President
of the American Bankers'Association; Henry I. Harriman, President of the United States Chamber of
Commerce; Winthrop W. Aldrich, Chairman of the
Chase National Bank of New York, and Daniel C.
Roper, Secretary of Commerce. The "Herald Tribune" account of the meeting states that while the
advisability of new banks, under the supervision and
sponsorship of the Federal Reserve Board, to supply
industrial loans of a few years' maturity was generally agreed to, "the conferences also produced the
start of a new drive to modify the Securities Act in
order to facilitate long-term loans." The Washington correspondent of the "Herald Tribune" is, however, careful to say that "On the latter point the
President remained uncommitted, although subjected to increasing pressure." We think, nevertheless, that the views of the Federal Advisory Council are of the utmost importance, all the more so as
they appear to be in complete harmony with the prevailing views of others, besides which the Advisory
Council expressed itself with the utmost freedom
and made no attempt to conceal its views on any of
the essential problems confronting the country,
whereas formerly considerable aversion existed towards any disclosure of what the Council had advised. The "Herald Tribune" correspondent states
that the prevailing thoughts expressed at the White
House and the Treasury by the financial and business visitors "unconnected with the Administration"
including the following: (1) That the commercial
banks are returning to their normal lending policy
and are meeting legitimate demands of business for
short-term credit; (2) that business conditions are
improving greatly and hold out promise of further
betterment; (3) that the present crux of the situation is the problem of energizing private heavy industry and restoring the sources of long-term credit.
The bankers of the Federal Advisory Council, we
are told, who conferred with Henry Morgenthau Jr.,
Secretary of the Treasury, and Eugene R. Black,
Governor of the Federal Reserve Board, laid great
stress on the last point. They felt, it is stated, that
large-scale re-employment must depend on long-term
credit and the capital goods industries.
For ourselves, we see no need of establishing
a new set of banks or of supplying additional credit.
There is credit galore and a superabundance of it for
all needs in every line of endeavor. Still we can
see no harm in the effort. The great point, however, to bear in mind is not additional supplies of
capital or credit, but to make conditions favorable to
the drawing out of capital. Then supplies will be
available in superabundance. It is for that reason
that the declarations now made by such an eminent
body of bankers and financiers as the Federal Advisory Council should carry exceptional weight, and,
as already stated, it is decidedly refreshing to read
of the general recognition that the views referred to
are IIQW being given in official Washington. They
are to be hailed with peculiar satisfaction as evidence that thought in Administration circles is now




Feb.

24 1934

turning in the right direction and that we shall soon
see the fruits in a modification of the laws that are
now hampering and restricting capital investment
in the field where it is so sorely needed.
Now what does the Federal Advisory Council advise? Governor Black was deputized to make known
the views of the 'Council, and he did this in the following statement:
"The Advisory Council," Governor Black said,
"discussed the general credit situation and reported
that all legitimate demands for commercial credit
are being met by the banks. Reports were received
that some of the banks were instructing their officers
to consider and make loans for a longer time than
the usual 90- or 120-day commercial papers, and to
consider the making of loans of six or 12 or 18
months, if the needs were shown.
"The Council also considered, with signs of interest, Government financing, and were pleased it had
been so successful and felt that the banks had supported and should support the financial program of
the Government. The Council was glad to see that
the Government offerings were for a lengthening
period each time, and felt that the market would
take other offerings for a still longer time; and
thought that if the Treasury should consider some
long-term financing it could be successfully accomplished.
"They were of the opinion there should be such
modifications of the Securities Act as would open
.up the capital market, and if the capital market was
opened up there would be a very ready response in
the market to provide capital for new industry and
the renovating of old industry, and that through this
process the heavy industries would be opened up and
that employment would be increased.
"They thought that through opening the capital
markets there would be very rapid strides in industry, with progress in employment, to the general
end that the program to recovery would be speeded
and greatly advanced.
"There was discussion of the proposed intermediate banks of industry. It was felt there was a
real demand for working capital on the part of small
industries. This need was illustrated not only by
the demand from all over the country for working
capital but by the financial statements of industries
showing great shrinkages in working capital over the
last few years, which in turn showed the need for
new working capital.
"It was felt that this could best be supplied
through a series of industrial intermediate credit
banks under the jurisdiction of the Federal Reserve
banks and operating through those banks and their
branches in the 12 cities in which they are located.
It was felt further than such mechanism distributed
throughout the country and cognizant of the needs
of the localities could most readily respond to the
needs for capital.
"The Council members reported that conditions in
their communities showed a large improvement; that
deposits in all the banks were increasing, and that
they thought this is due not only to Government expenditures •but to a real upturn in business conditions."
The points of greatest importance in the foregoing are that the Council are "of the opinion there
should be such modifications of the Securities Act
as would open up the capital market," and that "if
the capital market was opened up there would be a
very ready response in the market to provide capital
for new industry and the renovating of old industry, and that through this process the heavy industries would be opened up and that employment would
be increased"; also, the further statement that "they
thought that through opening the capital markets

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Financial Chronicle

there would be very rapid strides in industry, with
progress in employment, to the general end that the
program to recovery would be speeded and greatly
advanced." There cannot be a shadow of doubt of
the soundness of this latter reasoning, and to have
it advocated in such eminent quarters seems to us
to afford assurance that Administrative policy will
surely be directed along those lines and carried into
official action.
URELY there is something abhorrent in the doctrine to which Daniel C. Roper, Secretary of
Commerce, gave expression on Friday night of last
week at a forum of the League for Political Education, in Town Hall. Mr. Roper unqualifiedly declared, according to the account of his speech given
in the New York "Times" on Saturday morning last,
that "the object of the National Recovery Act is to
extend permanently to all busine.ss and industry a
control over profits and operations like that established in recent years in public utilities." This is
such an extreme utterance that one finds it hard to
credit it. But so many of the President's advisers
have given, and are giving, expressions to the same
view, that it is high time the declarations were receiving the attention which their importance demands. "To extend permanently" and "to all business and industry" a control over profits and operations, and to have that control "like that established
in the case of public utilities," it seems hard to believe that anyone in this land of ours should seriously advocate. Who would be contented to live
under such a state of things? And how in that event
would our Government be different from that of
Soviet Russia? And who is hankering to-day to
see such a Government established. And what would
become of individual initiative and of private enterprise in such circumstances?
As for limiting profits to the low basis to which
public utilities are held down, the effort would defeat itself. No capital would come in, in such an
event. Is it to be supposed that any man in his
senses would take all the risks involved in ordinary
business, and which are inevitable in the same, and
then be satisfied with a rate of return no higher than
that accorded to public utilities? Public utilities
stand on a different basis. They incur no such risks
of losses, and, moreover, they usually have a monopoly of the field. Mr. Roper took pains to say that
in thus extending permanently to all business and
industry control over profits and operations, it was
not the purpose of the National Recovery Administration thereby to eliminate the profit system, but
to control it. But that does not alter the purport
of the scheme. The attempt to limit profits to the
low rates of return allowed public utilities would
quickly reduce the industries of the country to a
condition of utter chaos, and a state of industrial
decay would quickly follow.
The Government then would itself have to take
the industries over and make good all the losses
growing out of the same. Private enterprise would
disappear and there would be nothing to take its
place except Government itself.
"In the interest of all concerned," Mr. Roper says,
"business must better control, harmonize and balance its profit system, just as we have done in the
public utility field. It is now evident that under
the old conditions too much profit was devoted to
building new production machinery and too little

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1269

was distributed back to the people to be used as
buying power." Still talking in the same strain,
Mr. Roper continues as follows: "The development
of the responsibility of all endeavors affecting the
public is naturally looming large in our advanced
consideration of the human element. The responsibility of the so-called public utility, which has developed in recent years, has been definitely chartered
in this respect and controlled through legislation
and regulation in the interests of both the producer
and consumer. We are now engaged under the National Recovery Administration in enlarging this
concept of responsibility in all lines of business."
"In all lines of business." What a huge undertaking it is here contemplated to assume, with private
enterprise killed, since the chance to survive would
be taken away. The ultimate outcome could only
be an actual dictatorship. And where would the
super men come from to run and govern the gigantic
industrial system of this vast country? The brain
trust on which the President relies so implicitly
could never prove equal to the task, for beyond a
display of arbitrary action unprecedented in the
annals of history it has accomplished absolutely
nothing, and it is now grappling with the gravest of
all its problems in seeking to revive the normal
growth of capital.
Only general disaster can result from persisting
in the course Mr. Roper and his associates are pursuing. Doom awaits a policy such as these men are
advocating with such mistaken zeal. And in the
• process the people of this country would be deprived
of their freedom and reduced to a state where they
would be denied everything in a political sense except the mere right to exist. It is time for the people
of this country to take their bearing and note
whither we are drifting. Surely they will not look
on with complacency or utter indifference when in
so many different ways their political as well as
their economic system is being undermined and their
future imperilled.
HE Federal Reserve condition statements this
week show that a considerable part of the
enormous importations of gold from abroad have
found their way into the Federal Reserve banks.
These importations reached no less than $204,608,000, the bulk of the whole amount coming from
England, France and Holland. England contributed $105,392,000, France $67,328,000, and Holland $24,236,060. In addition, $3,352,000 came from
Canada and $2,583,000 from Switzerland, $1,660,000
from Colombia and $57,000 from Belgium. This
statement is for the week ending Wednesday night.
The Federal Reserve condition statements are for
the same week, and they show that the item termed
"Gold Certificates on Hand and Due from United
States Treasury," the only way in which the title
to any gold is represented, increased during the
week from $3,582,092,000 Feb. 14 to $3,712,311,000
Feb. 21. This still leaves a considerable amount of
the addition to the gold stock unaccounted for. The
difference is still greater when the amount of the
monetary gold stock, which is given in a separate
statement, is examined. The increase in this monetary gold stock for the week is reported at only
$114,000,600. The discrepancy between the changes
in the two items is hard to understand unless the
entire amount of the gold imports had not been
reported to the compiling officials when the gold

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stock figures were made up. It is possible that part
of the amount may be covered up in the item termed
"Treasury Cash and Deposits with Federal Reserve
Banks," which is reported as showing an increase
in the large amount of $108,000,000 for the week,
though this seems doubtful.
The changes in the ordinary items of the returns
of the Federal Reserve institutions seem to possess
no special significance. They reflect a continued
and intensified ease in the general banking situation, as indicated by the fact that borrowing by the
member banks of the Federal Reserve System was
further reduced during the week, as indicated by
the fact that the discount holdings of the 12 Reserve
banks were further reduced from $68,405,000 to $66,467,000, and that the holdings of acceptances purchased in the open market also further diminished,
dropping from $86,086,000 to $75,111,000. Holdings
of United States Government securities again continued virtually unaltered, standing at $2,431,735,000 this week as against $2,432,024,000 last week.
The result altogether is that the volume of Reserve
credit outstanding, as measured by-the total of the
bill and security holdings, has fallen during the week
in amount of somewhat over $13,000,000, standing
at $2,574,606,000 this week as against $2,587,808,000
last week.
The amount of Federal Reserve notes in circulation keeps increasing, having further risen during
the week from $2,952,541,000 to $2,970,309,000,
though this increase is in part offset by another
decrease in the amount of Federal Reserve bank
notes outstanding, the reduction this week having
been from $199,358,000 to $197,750,000. Member
bank reserve deposits have decreased during the week
from $2,850,888,000 to $2,830,118,000, notwithstanding the easier condition of the member banks, but
this is easily explained by the fact that Government
deposits have run up during the week from $45,654,000 to $165,546,000; what has taken place is that
the member banks have made payment for some of
the extensive new obligations of the United States
Government for which they subscribed., Owing to
the large increase in Government deposits, the total
deposits of all kinds of the Federal Reserve banks
have risen from $3,026,569,000 to $3,127,884,000.
With larger deposits, larger cash reserves were acquired, and larger cash reserves were likewise required against the increased amounts of Federal Reserve notes outstanding, but the tremendous new acquisitions of gold have more than offset the expansion under both headings, and as a consequence the
ratio of total reserves to deposit and Federal Reserve note liabilities combined stands at 65.1% the
present week against 64.3% last week.

Feb. 24 1934

cash and 1% in common stock on the common stock,
payable April 2; previously, it had been the practice
of the company to pay the dividends entirely in stock
and 2% in stock was paid each quarter from April 1
1933 to and including Jan. 2 1934, prior to which the
company made quarterly distributions of 21/
2% in
stock. The E. I. du Pont de Nemours & Co. declared
the usual quarterly dividend of 50c. a share on common, payable March 15. Three months ago the
company declared an extra dividend of 75c. a share
in addition to the regular quarterly payment of 50c.
a share on common, both payable Dec. 15. The Industrial Rayon Corp. declared a dividend of $1.25 a
share on the common stock, payable April 1; distributions of $1 a share were made on this issue on
Jan. 16 1934 and on Oct. 1 1933, while 75c. a share
was paid on July 1 1933 and 50c.a share each quarter
from Oct.1 1932 to and including April 1 1933. The
Commercial Credit Co. of Baktimore resumed dividends on the common stock by the declaration of a
quarterly dividend of 25c. a share, payable March 31;
the last dividend, amounting to 12/
1
2c. a share, was
paid on this issue on June 30 1932. Douglas Aircraft Co., Inc., omitted the semi-annual dividend
ordinarily payable about March 21 on the no par
common stock; semi-annual payments of 371/2c. a
Share were made on this issue on March 21 and
Sept. 21 1933 and on Sept. 23 1932, as against semiannual dividends of 50c. a share on March 21 1932
and on Oct. 20 1931.

HE New York stock market this week was a dull
affair, with the fluctuations narrow except in
a very few active specialties. For one thing, the
week was badly broken up. Thursday was Washington's Birthday and a holiday, and on Tuesday the
city had to contend with one of the worst snowstorms
in its history, 9.2 inches of snow having fallen in this
city. The snow was at its worst Tuesday morning,
and was attended by gales of wind as high as 60 miles
an hour, interfering severely with all the transit
facilities in the city, the Long Island RR. and the
New Haven road being most seriously blocked, parts
of both lines ceasing completely to operate. Trains
coming from outside the city were many of them two
to four hours late. Commuters from neighboring
cities were so seriously and generally delayed that
the Stock Exchange and the Curb Exchange, as well
as the commodity exchanges, delayed their opening
for an hour, or from 10 o'clock to 11 o'clock a. m.
In a normal way there have been no developments
of great importance to stimulate the market. In the
absence of any large volume of trading, prices sagged
more or less. The flow of gold towards these shores
was of enormous proportions, the imports for the
week ending Wednesday night being reported at
ORPORATE dividend changes were less numer- $204,608,000. In addition, $11,987,200 more of the
ous than usual, but were mostly of a favorable Metal was reported as having been imported on
nature. The Humble Oil & Refining Co. declared a Thursday and Friday, and $671,000 More of gold was
quarterly dividend of 25c. a share, payable April 1, reported received at Seattle between Feb. 5 and
on the new common stock of no par value; this is Feb. 21.
equivalent to 75c. a share on the old $25 par common
The bond market at times moved lower, especially
stock recently exchanged on the basis of one old for the low-priced issues, but quickly regained its
share for three new no par shares; the old stock strength. The gold imports apparently were withreceived quarterly dividends of 50c. a share. The out any great influence on the course of speculation,
California Packing Corp. declared a dividend of 25c. and, as a matter of fact, the community seemed cona share on common, payable March 26; this is the fused as to their significance by the very reason
first dividend on this stock since Sept. 15 1931. The of their magnitude. The course of the foreign exNorth American Co. changed its dividend policy and changes was somewhat mixed, the pound sterling
declared a quarterly dividend of 12Y2c. a share in at one time moving sharply upward (involving de-

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preciation to a corresponding extent in the price of
the American dollar), and then moving down again
in the same sharp way, while the course of the French
franc most of the time developed a rising tendency.
Trade accounts were of nearly the same character as
in previous weeks, and reflected a rising volume of
trade in most lines. The steel trade, as in previous
weeks, gave the best account of itself. The American Iron and Steel Institute reported on Monday
that the steel mills of the country were now engaged
to 43.6% of capacity against 39.9% the previous
week and 37.5% the week before, and 34.4% in the
week preceding. The production of electricity continued on the same increasing scale as in the week
preceding,the amount for the week ending last Saturday being reported at 1,640,951,000 kilowatt hours
against 1,469,732,000 kilowatt hours in the same
week of 1933 and 1,545,469,000 kilowatt hours in the
corresponding week of 1932. The ratio of increase
over 1932 was 11.6%, which compared with 11.4%
the previous week and 12.5% the week preceding.
Commodity prices have shown an irregular tendency, moving, in the case of grain, lower most of the
time, while cotton prices developed a similar trend.
The May option for wheat in Chicago closed yesterday at 881/
8c. against 907
/8c. the close on Friday of
last week. May corn at Chicago closed yesterday
at 50%c. as against 5134c. the close the previous
Friday. May oats at Chicago closed yesterday at
• 35V8c. as against 367
/8c. the close the previous Friday. The spot price for cotton here in New York
closed yesterday at 12.40c. as against 12.55c. on
Friday of last week. The spot price for rubber
yesterday was 10.56c. as against 10.69c. the previous
Friday. Domestic copper was quoted yesterday at
Sc. as against Sc. the previous Friday. Silver continued to hold quite firm. In London the price
yesterday was 205
/
8 pence per ounce as against
20 5/16 pence on Friday of last week. The New
York quotation yesterday was 46.65c. an ounce as
against 46.28c. the previous Friday. In the matter
of the foreign exchanges, cable transfers on London
yesterday closed at $5.071/
2 as against $5.091/
8 the
close the previous Friday, while cable transfers on
Paris closed yesterday at 6.56c. as against 6.531/2c.
the close on Friday of last week. On the New York
Stock Exchange 298 stocks touched new high levels
for 1934 during the week, and 14 stocks dropped to
new low levels for the year. On the New York Curb
Exchange the record for the week is 110 new highs
and eight new lows. Call loans on the New York
Stock Exchange again continued unaltered at 1%.
Trading was light. On the New York Stock Exchange the sales at the half-day session on Saturday
last were 1,164,900 shares; on Monday they were
2,346,415 shares; on Tuesday, (due to the storm, the
Exchange opened at 11.00 a. m.), 1,219,630 shares;
on Wednesday 1,899,740 shares; Thursday was
Washington's Birthday and a holiday; on Friday
the sales were 2,289,868 shares. On the New York
Curb Exchange the sales last Saturday were 269,275
shares; on Monday 401,315 shares; on Tuesday
221,440 shares; on Wednesday 352,361 shares, and
on Friday 413,165 shares.
As compared with Friday of last week, irregular
changes are shown, but mostly towards lower levels.
General Electric closed yesterday at 21% against
8
233/i on Friday of last week; North American at 20%
against 23; Standard Gas & Electric at 1334 against
4 against
153/2; Consolidated Gas of N. Y. at 403




1271

43; Brooklyn Union Gas at 773 against 783/s;
Pacific Gas & Elec. at 20 against 21%; Columbia Gas
& Elec. at 163/i against 17%
3 ; Electric Power & Light
75A against 83'; Public Service of N. J. at 40%
against 423
%; J. I. Case Threshing Machine at 763%
against 81M;International Harvester at 423 against
44%; Sears, Roebuck & Co. at 47% against 50; Montgomery Ward & Co. at 323/
2 against 34%;
Woolworth at 5134 against 5234; Western Union
Telegraph at 593/ against 6334; Safeway Stores at
5334 against 54%; American Tel. & Tel. at 121
against 1223/
2; American Can at 103 against 1063/
8;
Commercial Solvents at 283% against 30%; Shattuck
& Co. at 103/b against 103/s, and Corn Products at
733/ against 7534•
Allied Chemical & Dye closed yesterday at 1553/2
against 158 on Friday of last week; Associated Dry
Goods at 163% against 17%;E. I. du Pont de Nemours
at 1013/i against 102%; National Cash Register A
at 20% against 21%; International Nickel at 23%
against 233/8; Timken Roller Bearing at 36% against
393
4; Johns-Manville at 60 against 64; Coca-Cola at
1083/b against 1033
4 bid; Gillette Safety Razor at
11% against 12; National Dairy Products at 15%
against 1634; Texas Gulf Sulphur at 3932 against
41%; Freeport-Texas at 47% against 483
4; United
Gas Improvement at 18% against 183%; National
Biscuit at 41 against 4338; Continental Can at 7834
against 80; Eastman Kodak at 893/2 against 92; Gold
Dust Corp. at 19% against 21; Standard Brands at
22 against 23; Paramount Publix Corp. ctfs. at 43
4
against 53
4; Westinghouse Elec. & Mfg. at 41
against 433
4;Columbia Carbon at 673% against 693%;
Reynolds Tobacco class B at 41 against 41; Lorillard
at 173/
2 against 173
4; Liggett & Myers class B at
86% against 863
4; Yellow Truck & Coach at 63/
i
against 634; Owens Glass at 89 against 9134; United
States Industrial Alcohol at 553/ against 58; Canada
Dry at 243
4 against 263/2; National Distillers at 263
against 27%; Crown Cork & Seal at 32 against 33,
and Mengel & Co. at 83/i against 034.
The steel shares continued to hold up well. United
States Steel closed yesterday at 57% against 583/
on Friday of last week; United States Steel pref. at
9432 against 94; Bethlehem Steel at 4634 against
48%, and Vanadium at 28% against 28%. In the
motor group, Auburn Auto closed yesterday at 5338
against 533
4; General Motors at 393/ against 403
%;
5
Nash Motors at 283% against 3034; Chrysler at 57%
against 59; Packard Motors at 63/i against 4%; Hupp
Motors at 634 against 634, and Hudson Motor Car
at 21% against 22%. In the rubber group, Goodyear Tire & Rubber closed yesterday at 39 against
39% on Friday of last week; B. F. Goodrich at 161A
against 173/8, and United States Rubber at 193%
against 20%.
3
The railroad list sagged somewhat. Pennsylvania
RR. closed yesterday at 37 against 3738 on Friday
of last week; Atchison Topeka & Santa Fe at 673
4
against 713/
8; Atlantic Coast Line at 49 against 52%;
3
Chicago Rock Island & Pacific at 534 against 5%;
New York Central at 41 against 423/2; Baltimore &
Ohio at 321% against •333
3
%; New Haven at 20%
against 213/
s; Union Pacific at 128 against 1323
4;
Missouri Pacific at 5 against 5%; Southern Pacific
at 293% against 311%; Missouri-Kansas-Texas at
1
•12% against 131%; Southern Ry. at 33 against 35%;
1 against 453'; Northern
Chesapeake & Ohio at 44%
Pacific at 3234 against 34, and Great Northern at 29
against 31.

1272

Financial Chronicle

Feb. 24 1934

The oil stocks moved within narrow limits. Stand- other industrial stocks also showed marked improveard Oil of N. J. closed yesterday at 473
4 against ment. British funds reflected further investment
48% on Friday of last week; Standard Oil of Calif. buying. International securities were quiet and
at 40 against 413/2; Atlantic Refining at 32 against 34. unchanged. In an active session yesterday further
In the copper group, Anaconda Copper closed yester- advances were recorded in British funds and indusday at 15% against 16% on Friday of last week; trial stocks. International issues were slightly
• Kennecott Copper at 203 against 223/
s; American better.
On the Paris Bourse a declining tendency prevailed
Smelting & Refining at 46N against 4938; Phelps-Dodge at 17 against 183'; Cerro de Pasco Copper at in the initial session of the week. Business was con36 against 39, and Calumet & Hecla at 53/b against fined chiefly to professional operators, as little interest was taken in the proceedings by investors.
5%.
Rentes declined sharply because of the general unENDENCIES were diverse this week on stock certainty regarding the future of the franc, and
markets in the leading European financial French stocks showed lesser losses. International
centers. The London Stock Exchange was cheerful securities were dull and unchanged. The trend
throughout, with industrial securities in keen de- Tuesday showed no material change in the situamand, while investment issues also were taken at tion. Rentes were marked downward substantially,
advancing levels. The Paris Bourse was quiet and owing to the opening of subscriptions to a new Govirregular, and there was also little change in the ernment loan for posts and wire communications at
dull sessions at Berlin. Continental markets were 891/2 for the 5% 30-year bonds. Many holders of
affected to a greater degree than the British Ex- rentes sold in order to buy this attractive new issue.
change by the uncertainties of the Austrian situa- French and foreign equities alike moved lower in the
tion and the numerous other international difficul- dull trading. Slight improvement was noted Wedties now in evidence. The London market was stimu- nesday, in some sections of the Bourse, but rentes
lated to no small degree by continued reports of did not participate as these obligations again were
trade improvement in the United Kingdom, and by sold rather heavily. Stocks were irregular, with
a sizeable advance in the British commodity price most issues showing small gains. Gold mining
index for January. Foreign trade returns indicated shares were much in demand in the foreign list,
that British imports advanced 19.9% in January which had a good tone. Trading was suspended in
over the figure for the same month of last year, while French markets on Thursday, owing to the funeral
exports advanced 6.8%. British Exchequer returns of King Albert of Belgium. When trading was realso remain highly satisfactory. In France the con- sumed yesterday prices advanced owing to the meastinued heavy drain of gold caused apprehensions, ures for a balanced budget taken by Parliament.
A definite trend was lacking on the Berlin Boerse
while the political situation also is somewhat doubtful. In the Chamber of Deputies the question of de- last Monday. After a weak opening prices improved,
valuing the French franc was discussed openly for and net changes at the close were unimportant.
the first time on Wednesday. Unemployment statis- Most of the mining issues showed small net gains,
tics of the French Government continue to reflect a and a number of speculative favorites likewise addeepening of the depression in that country. German vanced. In Tuesday's session the trend was defifinancial circles were perturbed by a loss of gold by nitely downward, owing to reported liquidation by
the Reichsbank, which was attributed to debt service professional operators. A few speculative issues lost
requirements on external loans of the Government. as much as3 points, but most stocks dropped between
Much concern also was occasioned in Berlin by for- 1 and 2 points. Bonds were not much affected, these
eign trade returns of the country for January, which issues keeping about to previous levels. Price
showed an unfavorable balance for the first time in changes on Wednesday were unimportant, and dealings also were small. Fractional gains were refour years.
A firm trend prevailed on the London Stock Ex- ported in a majority of stocks and bonds listed on
change as trading was resumed last Monday. Brit- the Boerse. The trading on Thursday was marked
ish industrial shares were in persistent demand, and by a slight downward tendency, but the movements
substantial gains were recorded in virtually all were only large enough to cancel the gains of the
groups of issues. Securities of the British Govern- previous session. I. G. Farbenindustrie and Reichsment reflected a more modest inquiry, which occa- bank shares moved contrary to the general trend
sioned small advances. South African gold mining and showed small gains. The tone yesterday was
stocks were uncertain at first, but most of the losses good. Bonds showed large gains, while stocks moved
were regained late in the day. Foreign obligations upward modestly.
were irregular. In Tuesday's dealings British funds
XTENSION for another year of the standstill
attracted more investment buying, and these issues
agreement covering short-term external debts
showed material gains. Industrial issues remained
strong, and gold mining stocks also moved upward of German borrowers was arranged at a protracted
steadily, but international securities were neglected. meeting in Berlin, which ended Feb. 16. A detailed
Business was brisk in Wednesday's session, and the study of all phases of the German external debt
upward movement continued. British funds showed problem apparently was made in the course of the
fractional advances, while larger gains appeared in 10-day conference. The accord signed by the comthe industrial section. German bonds were some- mittees of creditors' and debtors' representatives
what improved in the foreign list, but Anglo-Amer- calls for unchanged interest rates on the 2,600,ican issues remained quiet and practically un- 000,000 marks of credits covered, while capital rechanged. Activity declined a bit on Thursday; payments are to be postponed except through the
partly as a result of the close of the New York and use of registered marks. This fourth standstill agreeParis markets. The trend was again upward, with ment will supersede the one expiring Feb. 28, and
motor and aviation issues in brisk demand, while it will operate until Feb. 28 1935. Dr. Hjalmar

T




E

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Financial Chronicle

Schacht, President of the Reichsbank, acted as
Chairman at the Berlin gathering, which was attended by 20 representatives of banks in the United
States, Great Britain, France, Belgium, Czechoslovakia, Denmark, Holland, Sweden and Switzerland. Frank C. Tiarks, a director of the Bank of
England, was Chairman of the Creditors' Committee, while F. Abbot Goodhue and James H. Gannon
acted for American institutions. German debtors
were represented by Otto Jeidels, Gustave Schlieper
and Dr. Sempell.
A statement issued by the American representatives at the conclusion of the conference indicates
that the agreement was considered mutually satisfactory. Owing to the favorable working of the
previous standstill agreement, it was not found
necessary to alter the terms to any extent. The
volume of credits covered in the successive standstill pacts has diminished in close correspondence
with the decline of German trade-financing requirements during the depression, it was noted. Thus,
standstill credits of the 1930 pact were 8,000,000,000
marks, against the 22,429,000,000-mark volume of
German trade. In 1931 the credits dropped to 6,300,000,000 marks, while the trade volume decreased to
16,328,000,000 marks, and in 1932 the corresponding figures were 5,000,000,000 marks and 10,406,000,000 marks. In 1933 the credits fell to 2,300,000,000 marks (availments of Dec. 31 1933), against
the trade volume of 9,076,000,000 marks.
"This great reduction in the standstill credits,"
• the statement of the American representatives said,
"is tangible evidence of the inherent strength of German economy. The depreciation in the currencies
of many creditor countries, notably in the dollar and
the pound, has contributed appreciably to the reduction, but it is to be noted, first, that while depreciation favored the German debtor in the relative currency,it did not commensurately injure the creditor,
and second, that a great volume was repaid while
parity of the mark and other currencies obtained.
It is difficult to analyze exactly the requirements
up to date in all categories of this reduction in order
to arrive at the average discount, but it seems probable that this discount has not greatly, if at all,
exceeded 6%." In the year of the standstill accord
now ending, repayments were aided substantially, it
is noted, by Clause 10 of the agreement, which provides for the use of registered marks to this end.
Repayment in registered marks was found especially
satisfactory to the creditors because it enabled them
to concentrate their calls upon credits that were less
attractive. This has resulted in a wholesome improvement in the character of credits still outstanding.
The statement indicates that the creditors, in
negotiating the new agreement, gave due consideration to the large liquidation of credits in the past,
the continued right to call for registered marks, and
the need to keep at the disposal of Germany sufficient credit margin to permit her freely to import
raw materials from the creditors' own countries and
to export freely in order to obtain the foreign exchange necessary for meeting interest on other obligations. Any further outright reduction of unavailed credit lines would have required use of the
Reichsbank's foreign exchange reserves, but that institution's position has not improved greatly, and
the decision was accordingly reached to postpone
repayments. The whole position again will be re-




1273

viewed at a consultative meeting in London on
July 31 1934. The creditors noted that there are
already "distinct signs of improving trade for Germany through betterment of world conditions." The
problem of Germany's external debt remains a serious one, it was admitted, but "most satisfactory
progress has been made and daylight could plainly
be seen ahead."
OMMERCIAL relations between Great Britain
and Soviet Russia will be placed on a normal
basis by a trade agreement which was signed by
officials of the two governments in London on
Feb. 16, and placed before the House of Commons
for ratification on Tuesday. The agreement marks
the end of the difficulties and disputes that started
nearly a year ago, when embargoes were placed by
each country on the goods of the other, owing to the
feelings aroused by the trial of five British engineers
in Moscow. Eight general provisions are included
in the pact, besides the usual requirement for mutual
ratification. The terms provide, in general, for a
more nearly equal exchange of goods and services
than has been usual in Anglo-Russian trade relations. Highly indicative of the more friendly attitude that prompted the agreement is the omission
of all reference to the Lena gold fields dispute, which
complicated all previous attempts to arrange a
mutually satisfactory trade accord between the two
countries. Separate negotiations are to be conducted on that subject, a London dispatch to the
New York "Times" states. As the negotiations for
the treaty terminated an amicable atmosphere prevailed, it is said. Foreign Secretary Sir John Simon
and Walter Runciman, President of the Board of
Trade, attached their signatures for Great Britain,
while Ambassador Maisky and Alexander Ozersky,
the chief Soviet trade representative, signed for
Russia. •
Full and reciprocal most-favored-nation treatment is called for by this document in each country
for the goods of the other. Dumping by either country, which might frustrate preferences already
granted, is guarded against specifically. Russia
declares her intention of using the proceeds of sales
to Great Britain for increasing her purchases of
British goods and for chartering British ships. An
annex to this clause establishes ratios for gradually
bringing the exchange of goods into an approximate
balance. By the end of 1934 the ratio of Soviet sales
to Great Britain and Soviet purchases of British
goods will be 1.7 to 1, and by the end of 1938 the
ratio will be stabilized at 1.1 to 1. Great Britain
agrees to grant the Soviet Government trade credit
facilities equal to those granted any other country,
while a further clause provides diplomatic immunity
for Soviet trade representatives in Great Britain,
and also indicates that disputes arising from trans.
actions in the United Kingdom shall be subject to
the jurisdiction of British courts. Ocean transport of
cargoes and passengers is guaranteed most-favorednation treatment in another clause. The remaining
items provide specifically that Empire preferences
are not to be available to Soviet Russia, while Soviet
preferences granted to her Baltic or Asiatic neighbors are not to be extended to Great Britain.

C

ENEWED efforts to find a basis for some measure of disarmament in Europe were started a
week ago by the British Government. Captain

R

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Financial Chronicle

Anthony Eden, Lord Privy Seal in the London Cabinet, conferred at Paris last Saturday with leading
French officials, and further talks followed at Berlin, Wednesday and Thursday, with Chancellor Hitler and Foreign Minister von Neurath. The British
expert went to Rome yesterday for conversations
with Premier Mussolini, and he will again confer
with Premier Doumergue and Foreign Minister Barthou in Paris before returning to London. The task
confronting Captain Eden is one that has baffled all
statesmen, and there is no evidence, as yet, that he
had made much progress. Direct conversations between France and Germany on the armaments problem came to an end Feb. 13, when the French Government addressed a communication to Berlin in
which German claims to larger forces and some defensive arms were rather sharply denied. The assertion was made by Foreign Minister Barthou that the
German semi-military organizations must be counted
as part of her regular army. Germany was politely
informed that it was drawing erroneous conclusions
from the direct exchanges on armaments, such as
the suggestion that France is not disposed to any real
measure of disarmament. It was pointed out, moreover, that Germany had not replied to the French
request for further enlightenment on Berlin's ideas.
With the background so unfavorable, Captain
Eden's mission could hardly be viewed as auspicious, and it was generally admitted in London even
before he departed that the chances of any accomplishment were slim indeed. The Austrian affair
and the obvious regrouping of Powers which it is
occasioning or reflecting added to the unfavorable
aspect of the disarmament question. In Paris, Captain Eden was informed last Saturday that the final
word of the French Government had been spoken on
the subject and that concessions to Germany and
disarmament by France were both unlikely. In Berlin a somewhat more amicable atmosphere appeared
to prevail and it was hinted in dispatches from that
capital that Great Britain and Germany might work
in accord on the problem of armaments. After the
discussions were concluded, Thursday, it was stated
in a report to the New York "Times" that German
arms demands had been modified and that they had
met a sympathetic response from Captain Eden. It
may be questioned, however, whether the "modification" would prove acceptable to France, as the primary demand for an army of 300,000 men and continuance of the semi-military organizations seems to
be continued. Germany, it was said, would consent
to control of the Nazi storm troops and the special
guards provided other Powers accept similar controls. Defensive weapons, including defensive aircraft, were again demanded. The response of the
Italian Government to the idea of control of semimilitary organizations will prove interesting. While
Captain Eden was discussing disarmament on the
Continent, leading members of the British Cabinet
were calmly facing the prospect of a complete breakdown in negotiations. Foreign Secretary Sir John
Simon declared last Saturday that Great Britain, in
any such event,"will have to look to the state of her
armaments, and the world will relapse into unregulated competition."

PROGRESS

at length is being made in France
toward that balancing of the budget which is
considered essential if the stability of the franc is
to be maintained and the country kept on the gold




Feb. 24 1934

standard. Influenced, no doubt, by the huge current
gold withdrawals from the Bank of France, and by
clear warnings that devaluation will follow an unbalanced budget, the Chamber of Deputies voted a
budget for 1934, on Thursday, which shows a substantial balance. Expenditures were placed at
48,418,000,000 francs, while receipts were calculated
at 48,477,000,000 francs. Authority was given Premier Doumergue, moreover, to reduce expenditures
550,000,000 francs by decree if this should be found
necessary to effect a genuine balance. M. Doumergue assured the Chamber that he would not reduce
the salaries of Government employees, and the budget and the authority for further reductions then
were voted by 469 to 123.
Noteworthy was a quiet debate in the Chamber,
on Wednesday, in which the Deputies for the first
time calmly discussed the possibility of devaluation
of the franc as a matter of economic policy. Deputy
Paul Reynaud argued that French business cannot
continue indefinitely to labor under the disadvantage of production costs at least 30% above the world
level. He declared that the budget must be balanced at so low a figure that taxes can be cut and
industry relieved. The only alternative is devaluation, he added. The Stavisky affair has again added
to the troubles of the French Government. Judge
Albert Prince, who was well informed on the legal
background and many details of the Stavisky scandal, was found murdered, Wednesday, beside the
railroad tracks near Dijon, and his associates have,
made it plain that they believe the murder had a
"political" origin. Papers on the Stavisky case were
stolen, but the dead man's money was found intact.
Popular indignation has again mounted, and it is
hinted in Paris dispatches that some prominent persons may be involved in disclosures soon to be made.
--•-LTHOUGH the Austrian socialist party has been
virtually eliminated as a political entity by
the warfare which the Dollfuss Government and the
Heimwehr waged against it last week, affairs in the
little Central European country remain confused
and highly uncertain. The end of the period of martial law was announced by Chancellor Engelbert
Dollfuss on Tuesday, but even before that day the
Austrian Nazis, who remained quiescent during the
conflict, resumed their agitation for a Fascist Government with leanings toward Germany. It was
widely reported that the Socialists were joining
forces with the Nazis in great numbers and thus
augmenting the pressure for a swing toward Berlin.
The situation was hastily considered by the Governments of Great Britain, France and Italy, late last
week, and a declaration was issued jointly last Saturday in which treaty engagements for maintaining
Austria as an independent State were emphasized.
The statement was of a nature described in diplomatic circles as "platonic." Much international concein was occasioned Monday by a radio speech from
Munich, in which Theodore Habicht, the German
Nazi Inspector-General for Austria, declared that
Austria would be given eight days to accomplish a
transformation into a Nazi State. It was broadly
hinted in Berlin on the following day, however, that
the Habicht "ultimatum" was not authorized by
Chancellor Hitler. No mention of the address was
permitted in German newspapers.
The Austrian Socialists apparently concluded that
their cause is hopeless, as there was no further fight-

A

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Financial Chronicle

1275

ing after calm was restored on Feb. 15. Chancellor meeting of the League of Nations Council to conDollfuss and the Heimwehr leaders, jointly, took sider the charges of German interference. There
rather harsh measures while consolidating their re- was evidence, some reports said, that Austria will
gime. Such leaders of the Socialist defense as they be content with the declaration, no matter how placould find were summarily court-martialed and tonic its phraseology.
A number of unofficial declarations were made
hanged. In some cases,such as the hanging of Mayor
Kolomen Wallisch, of Bruck, vengeance which the in other European countries with regard to Austria,
Heimwehr had long planned, was carried out. Dr. and of these the most significant unquestionably
Otto Bauer, intellectual leader of the Austrian So- was that of the German "Inspector-General for Auscialists, and Dr.Julius Deutsch, who commanded the tria." Herr Habicht declared in this address that
Vienna Socialists, made their escape to Czechoslo- the Dollfuss Government must accept co-operation
vakia. Their versions of the events leading up to the with the Austrian National-Socialists (Hitlerite
warfare were in all important respects similar to the Fascists), or else prepare to fight to the finish. An
accounts sent to this side by the many able corre- eight-day "truce" was promised, during which atspondents of foreign newspapers in Austria. Dr. tacks on the Dollfuss regime by Austrian Nazis were
Deutsch insisted that Socialism will rise again in his forbidden on pain of expulsion from the party, but
country, but he admitted that the Nazis will gain if the required co-operation is not forthcoming by
heavily as a result of the incidents of last week and Feb. 28 the Nazi struggle against the Dollfuss Govthe persistent unrest within Austria. Chancellor ernment will be resumed. The force of this stateDollfuss, in an international radio address, declared ment remains in doubt, however, as an Associated
last Sunday that the blame for the warfare rests Press dispatch from Berlin indicated the following
entirely upon the Socialists. He stated that only 241 day that Chancellor Hitler was highly displeased
fatalities occurred in the fighting, but this figure with Herr Habicht, who was said to have acted withwas promptly disputed by foreign press correspond- out authority. No official notice of the development
ents in Vienna, who insisted that at least 1,000 had was taken in any other country. Parliamentary cirbeen killed and probably many more. The numerous cles in London expressed some apprehension WednesSocialists who held elective offices in Vienna and day, regarding the three-Power declaration for an
other cities were relieved of their posts and quickly independent Austria, and Foreign Secretary Sir
replaced by Fascist officials. Some of the moderates John Simon was questioned at great length in the
in Dr. Dollfuss's own Christian Social party were House of Commons. He insisted that the statement
removed from office and replaced by Heimwehr men, did not involve Great Britain in any commitment
indicating that Prince Ernst von Starhemberg and and remarked that the declaration is merely one of
general principles, entirely in accord with relevant
his Fascist associates are in the ascendency.
Dr. Dollfuss again explained his viewpoint and treaties. Henry Berenger, President of the Foreign
also some of his plans in an address before the Affairs Commission of the French Senate, spoke out
Anglo-American Press Association of Vienna, Thurs- firmly on Wednesday in favor of League of Nations
day. The present task of his regime will be to main- action on the Austrian situation, but his call protain order, refrain from recriminations and win back duced no official recation. The Italian viewpoint
the loyalty of republican workers, the Chancellor was expressed Tuesday by Deputy Ezio Garibaldi,
declared. He also indicated, a dispatch to the New who urged an immediate conference under the fourYork "Times" said, that a new Constitution is being Power treaty to settle Austro-German differences.
formulated and will be ready within two to three
weeks. This document will represent neither the
ING ALBERT of Belgium, statesman and
Fascist extreme nor the Socialist viewpoint, but
soldier, was killed last Saturday in a fall
rather a middle ground between them. Continuity from a cliff near Namur, where he was indulging his
of law rather than a whole new system was said to penchant for mountain climbing. The death of the
be the aim, while popular approval also is desired, Bing plunged his country in grief and shocked all
although means of obtaining such approval appear of Europe. He is succeeded on the Belgian throne
a bit doubtful. The Chancellor remarked that a by his son, Leopold III, who took the simple oath
referendum in some form is being considered in the yesterday to observe the Constitution and laws of
hope that promulgation by decree can be avoided. the Belgian people and to maintain the national inThe new tendency will not include anti-Semitism, dependence and integrity of territory. Although
dynastic changes are not the important matters they
he stated.
The declaration of the British, French and Italian used to be, Albert's passing is an event of some
Governments was issued in response to an inquiry significance, as he was a stabilizing influence in the
by the Vienna regime regarding their attitude to- affairs of his country, which are marked by the same
ward a dossier which the Austrian Government pre- strife over policies apparent everywhere else in the
pared on the subject of German interference in the world. Well loved and respected by all his people,
internal affairs of Austria. "Conversations which King Albert was able to prevent the language and
have taken place between the three governments on other internal differences from becoming excessively
this subject have shown," the announcement said, serious matters. It is, perhaps, indicative that pro"that they take a common view as to the necessity of tests against continuance of the Monarchy in Belmaintaining Austria's independence and integrity in gium began to be voiced almost immediately after
accordance with the relevant treaties." It was noted his death became known. In Europe, generally, the
that the British Government had already made its death of this King was mourned, not only because
position clear in an aide-memoir handed the Aus- of his excellent qualities, but also because of the
trian Minister in London on Feb. 9. Diplomatic sympathy felt for him and his people when the tide
hints were thrown out in some London circles that of war surged over them in 1914. King Albert perthe declaration was made to satisfy the Austrian sonified, more than any other individual, the outGovernment and prevent it from requesting a special raged feelings of the millions everywhere who were


•


K

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Financial Chronicle

drawn into that conflict against their wills. The
patience and resignation with which the King and
Queen Elizabeth labored for their people during the
conflict were widely recounted this week.
Bing Albert was alone when he fell, as he left an
attendant on the road below the cliff when he started
to climb. After some hours.of anxious search, his
body was found in a copse at the bottom with a deep
gash in the head, indicating that death was instantaneous. The body was carried in mournful procession on Monday,to the palace at Laeken, and thence
to Brussels. Interment took place Thursday, with
many of the crowned heads of Europe in attendance.
Messages of sympathy were sent to the Queen, to
Crown Prince Leopold and to the Belgian people
from all parts of the world. Prince Leopold was in
Switzerland when he was informed of the death of
his father, and he speedily returned to Brussels.
The Belgian Cabinet issued a proclamation, Monday,
eulogizing the dead monarch and announcing that
the country now places its hope in the Crown Prince.

Feb. 24 1934

are being rushed to Siberia as fast as transport arrangements permit. General Vassily Bluecher, Commander of the Soviet Far Eastern Army, declared •
at a Moscow meeting of the Communist Party Congress, last week, that Japanese activities in Manchuria are not defensive but are aimed at an attack
on Soviet territory. Not only by an immense concentration of troops, but also by the construction of
strategic railways, roads and airdromes is the Japanese intention revealed, General Bluecher declared.
A special correspondent of the New York "Times,"
sent to Vladivostock, reported last Sunday that the
Soviet Government is backing its opinion by a concentration of men and armaments at least equal to
the reported Japanese concentration. The Japanese
Diet, or lower House of Parliament, voted last week
a budget providing for the heaviest military expenditures in the history of Japan. The two major parties, the Seiyukai and Minseito, supported the budget solidly with 411 votes, but minor groups opposed
it with 37 votes. The modest criticism of the war
expenditures voiced in the Diet was considered heartening in Moscow, where it was suggested last Sunday that war is perhaps less imminent than had been
thought.

A'PREHENSIONS regarding a possible war between Japan and Soviet Russia were modified
slightly this week, as evidence appeared that some
of the leading Governments of the world are seeking
ways of adjusting the strains occasioned by Japa-• rERE have been no changes the present week
nese aggression in Manchuria and North China. It
in the discount rates of any of the foreign
was suggested informally at Washington, Wednes- central banks. Present rates at the leading centers
day, that the United States Government might take are shown in the table which follows:
a conciliatory stand on the question of recognizing
DISCOUNT RATES OF FOREIGN CENTRAL BANKS.
•
the Japanese puppet-State of Manchukuo, if the
Rate in
PreRa:e in
Country. Effect
Country. Effect
sinus
Date
Date
sinus
League of Nations were to withdraw its condemnaFeb. 23 Established. Rate.
Feb.23 Established. Rate.
tion of Japanese activities in 1931 and subsequent Austria__ 5 Mar.23 1933 6 Hungary.— 434 Oct. 17 1932 5
Belgium
344 Feb. 16 1933 4
334 Jan. 13 1932 234 India
years. President Roosevelt made it plain, a dispatch Bulgaria—
3
Ireland_
June 30 1932 344
7
Jan. 3 1934 8
Chile
3
Dec. 11 1933 334
23 1932 534 Italy
434
to the New York "Times" said, that the question of Colombia— 4 Aug.
3.65 July 3 1933 4.38
Japan
July 18 1933 5
444 Aug. 16 1933 5
Java
recognition is so delicate that it cannot be discussed Cseeboslovakia____ 344 Jan. 25 1933 444 Lithuania_ 6
Jan. 2 1934 7
Norway
334 May 23 1933 4
July 12 1932 5
Danzig.... 4
at present. Officials of the State Department were Denmark_. 234 Nov.29 1933 3 Poland
5
Oct. 25 1933 6
England_.. 2
June 30 1932 241 Portugal_. 534 Dec. 8 1933 6
said to believe that far too much prominence has Estonia__
Apr. 7 1933 6
544 Jan. 20 1932 644 Rumania _. 6
Africa 4
Finland — 444 Dec. 20 1933 5
Feb. 21 1933 7
been given recently to the alleged tense relations France__ _ _ 3% Feb. 8 1934 234 south
Spain
6
Oct. 22 1932 534
Sweden___ 234 Dec. 1 1933 3
Sept.30 1932 5
Germany__ 4
betwen the United States and Japan. It was main- Greece
Jan. 22 1931
41
Oct. 13 1933 744 Switzerland 2
7
Holland. _ _ 294 Sept IP 1833 3
tained that the two countries are on as good terms
In London open market discounts for short bills
as they ever have been. The problem of recognition
on
Friday were /@15-16%, as against 7A% on
of Manchukuo was brought into prominence by Tokio
reports that a representative of the French National 'Friday of last week and 15-16@1% for three months'
Association for Economic Expansion is about to bills, as against @15-16% on Friday of last week.
3 %. At
sign an agreement with the South Manchuria Rail- Money on call in London yesterday was 4
rate
market
remains
Paris
the
open
at
231%
and
way for the development of Manchurian resources
in
Switzerland
at
11
/%.
with the aid of French capital. Etienne Fougere,
President of the Association, denied in Paris that
the representative had authority to make any agreeHE weekly statement of the Bank of France
ments, as he was •sent to Japan and Manchuria
dated Feb. 16 shows a further reduction in
merely to study the situation. There were reports gold holdings, this time of 447,791,340 francs. The
from Berlin and Tokio, over the last week-end, to total of gold is now 74,434,915,823 francs in comthe effect that German recognition of Manchukuo parison with 81,320,100,990 francs last year and
may be extended before long.
73,814,806,303 francs the previous year. French
It is assumed in most diplomatic circles that gen- commercial bills discounted and credit balances
eral recognition of Manchukuo by the great Powers abroad record increases of 166,000,000 francs and
might make the Japanese military clique more amen- 1,000,000 francs, while bills bought abroad, advances
able to the influence of other countries, and this, against securities and creditor current accounts fell
it is further believed, might lessen the prospect of off 14,000,000 francs, 4,000,000 francs and 92,000,000
war between Russia and Japan. This view is far francs respectively. Notes in circulation reveal a
from universal, as there are many experts on Far contraction of 306,000,000 francs, reducing the
Eastern affairs who hold a desperate conflict in- total of notes outstanding to 81,085,108,685 francs.
evitable, owing to the expansionist aims of the Japa- Circulation a year ago aggregated 83,373,193,470
nese in Eastern Asia. Authorities of the Russian francs and the year before 82,578,578,505 francs.
Soviet Government certainly do not subscribe to The proportion of gold on hand to sight liabilities
that view, as warnings continue to be issued in stands this week at 77.65%, as against 77.76% a
Moscow against Japanese aggression in the Siberian year ago. Below we furnish a comparison of the
Maritime Provinces, while men and war supplies various items for three years:




T

Financial Chronicle

Volume 138

BANK OF FRANCE'S COMPARATIVE STATEMENT.
Changes
for Week.

Feb. 16 1934. Feb. 17 1933. Feb. 19 1932.

Francs.
Francs.
Francs.
Francs.
—447,791,340 74,434,915,823 81,320,100,990 73,814,806,303
+1,000,000
14,016,693 2,767,754,516 7,580,147.684

Gold holdings
Credit bals. abroad_
a French commercial
bills discounted_ _ +166,000,000 5,328,035,571 2,739,339,666 4,996,851,556
b Bills bought abr'd
—14,000,000 1,056,577,887 1,635,479,414 8,975,246,837
Adv. against securs_
—4,000,000 3,001,658,368 2,609,296,051 2,711,332,121
Note circulation_ _
—306,000,000 81,085,108,685 83,373,193,470 82,578,578,505
Credit curr. accts
—92,000,000 14,778,729,921 21,326,525,641 28,650,175,956
Propor. of gold on
hand to sight nab_
—0.14%
77.53%
77.76%
66.36%
a Includes bills purchased in France. b Includes bills discounted abroad.

HE Bank of England statement for the week
ended Feb. 21 shows an increase of £139,143,
again bringing the total up to new high ground.
The total now stands at £191,982,187 as compared
with £142,982,859 a year ago. As the gain in gold
was attended by a contraction of £1,626,000 in circulation, reserves rose £1,765,000. Public deposits rose
£5,953,000, while other deposits fell off £1,547,977.
Of the latter amount £1,010,085 was from bankers'
accounts and £537,892 from other accounts. The reserve ratio is now 53.45% as compared with 53.82%
a week ago and 38.70% a year ago. Loans on government securities rose £1,141,000 and those on other
securities £1,524,601. The latter consists of discounts and advances which decreased £69,588 and
securities which increased £1,594,189. No change
was made in the 2% discount rate. Below we give
the figures for five years.

T

BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1934.
Feb. 21.

1933.
Feb. 22.

1932.
Feb. 24.

1931.
Feb. 25.

1930.
Feb. 26.

£
£
£
£
£
Circulation a
364,654,000 356,249,195 346,404,346 347,665,402 346,812,165
Public deposits
29,328,000 26,184,171 14,125,133 16,221,280 11,987,053
Other deposits
124,049,512 133,308,625 100,122,413 92,383,915 86,945,285
Bankers' accounts_ 98,267,926 98,299,763 67,924,058 59,071,685 50,713,918
Other accounts_
35,781,586 35,008,862 32,198,355 33,312,230 36,231,367
Governm't securities 73,336,610 86,380,258 33,675,906 36,734,684 34,441,563
Other securities
20,912,055 29,574,752 48,813,862 36,167,667 17,585,214
Disct & advances_ 8,130,748 11,948,353 11,492,953 8,517,846 4,716.355
Securities
12,781,307 17,626,399 37,320,909 27,649,821 12,868,859
Reserve notes & coin 87,327,000 61,733,664 49,943,427 53,927,188 65,167,073
Coin and bullion...,_ 191,982,187 142,982,859 121.347,773 141,592,550 151,979,238
Proportion of reserve
to liabilities
53.45%
38.70%
43.71%
49.65%
65.86%
Bank rate
2%
3%
2%
5%
44%
a On Nov. 29 1928 the fiduciary currency was amalgamated with Bank of England
note issues, adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.

ATES in the New York money market were
unchanged this week, but dealers reported
increasing ease, owing to the heavy arrivals of gold
from Europe. Additions to the monetary gold stocks
are taking place at an unprecedented rate, and the
effect in the money market is very apparent. Bankers'
bills, Treasury discount bills and other prime short
dated obligations were in exceptional demand, with
offerings increasingly scarce. Hanging over the
market, moreover, is the prospective use by the
Treasury of the gold "profit" resulting from devaluation of the dollar.
Call loans on the New York Stock Exchange were
maintained at 1% all week, both new loans and
renewals being at this figure. In the unofficial street
market call loans were reported done every business
3 %,or d concession of 34.70 from the official
day at 4
rate. Time loans were quiet and unchanged. An
issue of $75,000,000 Treasury discount bills due in
91 clays was awarded Monday at an average discount
of 0.57%, this rate comparing with the figure of
0.66% on a similar issue sold ten days earlier.
Brokers' loans against stock and bond collateral
increased $97,000,000 in the week to Wednesday
night, according to the customary statement issued
by the Federal Reserve Bank of New York.

R

1277

gold is now 333,307,000 marks in comparison with
822,383,000 marks a year ago and 928,682,000 marks
two years ago. An increase ,appears in reserve in
foreign currency of 898,000 marks, in silver and
other coin of 14,779,000 marks, in notes on other
German banks of 3,365,000 marks, in investments
of 20,034,000 marks and in other assets of 37,612„000
marks. Notes in circulation contracted 37,309,000
marks reducing the total of the item to 3,284,851,000
marks. The total of circulation last year was 3,179,744,000 marks and the previous year, 4,155,232,000
marks. Bills of exchange and checks, advances,
other daily maturing obligations and other liabilities
register decreases of 153,987,000 marks, 3,200,000
marks, 101,962,000 marks and 16,404,000 marks,
respectively. The proportion of gold and foreign
currency to note circulation is now 10.4%, as against
28.9% last year and 25.8% the previous year. A
comparison of the various items for three years
appears below:
REICHSBANK'S COMPARATIVE STATEMENT.
Changes
for Week.

Feb. 15 1934. Feb. 15 1933. Feb. 15 1932.

Assets-Retchsmarks. Reichsmarks. Retchsmarks, Retchsmarks.
Gold and bullion
—21,176,000 333,307,000 822.383,000 928,682,000
Of which depos. abroad No change.
23,391,000
38,116,000
79,691,000
Reserve in foreign curr_
+898,000
10,052,000
97,970,000 144,191,000
Bills of exch. and checks —153,987,000 2,675,608,000 2,317,899,000 3.253.631,000
Silver and other coin...
+14,779,000 283,494,000 303,788,000 169,799,000
11,157,000
11,366,000
8,828,000
Notes on other Ger. bks.
+3,365,000
Advances
—3,200,000
68,397,000
76,741,000 187,926,000
Investments
+20,034,000 652,042,000 400,826,000 160,563,000
Other assets
+37,612,000 607,228,000 839,215,000 1,013,141,000
Liabilities—
Notes in circulation
—37,309,000 3,284,851,000 3,179,744,000 4,155,232,000
Other daily matur.obllg. —101,962,000 426,135,000 355,346,000 370,714,000
Other liabilities
—10,404,000 243,148,000 767,672,000 853,484,000
Propor.of gold & foreign
curr. to note circurn_
—0.5%
10.4%
28.9%
25.8%

_

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 improvement this week.
There has been an occasional transaction in 90-day
maturities, but no other business has been reported.
Rates are nominal at %@1% for 60 and 90 days,
/
2% for five
1@114% for four months and 13'@11
and six months. The,market for commercial paper
has been moderately active this week, and the supply
of paper available is considerably larger than last
week. Rates are 13.% for extra choice names run/
2% for names
ning from four to six months and 11
less known.

D

HE demand for prime bankers' acceptances from
all parts of the country has been good this week
but the supply of bills available has been far short of
requirements. Rates are unchanged. Quotations
of the American Acceptance Council for bills up to
and including 90 days are M% bid and /
1
2% asked;
for four months, 4
1% bid and M% asked; for five
and six months, 1% bid and 73% asked. The bill
buying rate of the New York Reserve Bank is /
1 2%
for bills running from 1 to 90 days, and proportionately higher for longer maturities. The Federal
Reserve banks' holdings of acceptances fell during
the week from $86,086,000 to $75,111,000. Their
holdings of acceptances for foreign correspondents,
however, showed an increase from $4,284,000 to
$4,635,000. Open market rates for acceptances are
as follows:

T

SPOT DELIVERY.
—180 Days— —150 Dais--120 Days-Bid. Asked, Bid.
Asked. Bid.
Asked.
Prime eligible bIlls
1
14
1
—90 Dais— —60 Days-—30 Days—
Bid. Asked. Bid, Asked. Bid.
Asked.
Male ellgible bIlls
34
34
K
H
fS
14
FOR DELIVERY WITHIN THIRTY DAYS.
Eligible member banks
1% bid
Eligible non-member banks
1% bid

%

HE Bank of Germany in its statement for the
second quarter of February shows a decrease
in gold and bullion of21,176,000 marks. The total of

T




m

K

1278

Financial Chronicle

HERE have been no changes this week in the
T
rediscount rates of the Federal Reserve banks.
The following is the schdule of rates now in effect for
the various classes of paper at the different Reserve
banks:
DISCOUNT RATES OF FEDERAL RESERVE BANKS.

Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Rate in
Effect on
Feb. 23.
2
134
2%
7
3

a

234
234
334

a

3
2

Date
Established.

Protein
Rate.

Feb. 8 1934
Feb. 2 1934
Nov. 18 1933
Feb. 3 1934
Feb. 9 1934
Feb. 10 1934
Oct. 21 1933
Feb. 8 1934
Sept. 12 1930
Feb. 9 1934
Feb. 8 1934
Feb. 16 1934

234
2
3
2)4
334
334

a

3
4
3W
3%
2%

TERLING exchange in all important respects
S
presents much the same aspect as a week ago.
It is

firm in terms of the' dollar. The rate fluctuates widely but remains within about the same
limits as last week. The daily fluctuation frequently amounts to four or five cents, and in Tuesday's trading the pound went off 9M cents at the
opening and recovered almost as much the next day.
Market centers in the dollar and in the extraordinary
gold purchases of the United States made not only
in London, but in Paris, Amsterdam and Bombay,
India. The range for sterling this week has been
between $5.04 and $5.143/ for bankers' sight bills,
compared with a range of between 35.0234 and
$5.091
4 last week. The range for cable transfers
has been between $5.041
/
4. and $5.14M, compared
with a range of between $5.02M and $5.093' a. week
ago. Sterling is fractionally firmer in terms of
French francs, or gold, and the price of gold in the
London open market, as measured in shillings and
pence, is softer.
The following tables give the mean London.check
rate on Paris from day to day, the London open
market gold price and the price paid for gold by
the United States:
MEAN LONDON CHECK RATE ON PARIS.
WIdnesday Feb. 21
Saturday Feb. 17
78.00
Thursday Feb. 22
Monday Feb. 19
78.84
77.92 Friday
Tuesday Feb. 20
Feb. 23

77.62
77.50 •
77.37

LONDON OPEN MARKET GOLD PRICE.
Saturday Feb. 17
135s. 10d. Wednesday Feb. 21____136s. 5d.
134s. 9d. Thursday Feb. 22____136s. Id.
Monday Feb. 19
Tuesday Feb. 20
135s 9d. Friday
Feb. 23_136s.530.
PRICE PAID FOR GOLD BY THE UNITED STATES
(FEDERAL RESERVE BANK).
35.00 I Wednesday Feb. 21
35.00
Saturday Feb. 17
35.00 Thursday Feb. 22
Monday Feb. 19
Holiday
Feb. 23
35.00 Friday
Tuesday Feb. 20
35.00

On Monday last the price of gold in the London
market dropped to 134s. 9d. per fine ounce, a decline of is. id. per ounce from Saturday last, and
the lowest quotation registered this month. The
current quotations compared with the high of 140s.
early this month. The drop in the London price
for gold does not mean that the margin of profit
for shipments to this country has increased materially because sterling has advanced against the
dollar almost enough to keep the margin of profit
approximately the same.
The extraordinary gold flow to this side is expected to continue for a while. On the present
movement gold already arrived and in transit
exceeds $350,000,000, believed to be one of the
largest movements ever accomplished in so short
a time. Practically every vessel sailing from Europe
is loaded with gold, and the public press has shown
a tendency to discuss the gold shipments in terms
of ton-weight and the number of boxes, instead of



Feb. 24 1934

in dollars and pounds. Much of the gold which
arrived this week, and which is expected during the
coming week as shipping space becomes available,
was already engaged in London some time ago.
Signs are not wanting that these exceptionally heavy
shipments cannot continue and may cease abruptly,
but as long as the United States maintains the price
of $35 an ounce, gold will seek this market. However, as the dollar, the franc and the pound have a
tendency to draw closer to the new parities established by American devaluation, the arbitrage
profits for gold trans-shipments to the United
States have a tendency to diminish. The profit on
gold arbitrage transactions is still attractive, but
the spread between the current quotation and the
new parities has become .small enough to weed out
all shippers who have not the advantage of close
contacts in England and on the Continent. Much
of the gold now coming here represents the transfer
of European capital and repatriated American
capital to take advantage of the returning confidence
in the up-swing of business here. It cannot be said
that this particular movement is nearing an end,
but once the proposed legislation here relating to
Stock Exchange control and other financial measures
becomes clarified these transfers are likely to increase in volume for a short time and then stop
entirely, thereby eliminating this element of confusion from the foreign exchange market.
The flow of funds is clearly to this side and not to
Europe, as is evidenced by the diminishing premium
on forward sterling exchange. In Tuesday's trading
sterling futures weakened to the lowest on the current
move, with one-month sterling commanding a premium of only M cent above the spot rate, and threemonths sterling %
5 cent. In considering this aspect
of exchange it should be recalled that under normal
conditions, as the foreign exchange market existed
before the war, the rate was constantly in favor of
London and against New York from about the middle
of January until the end of August. Last week the
rate for 90-day sterling commanded a premium of
%
3 cent above the spot rate, as compared with a premium of 3 cents two weeks ago and of 6 to 7 cents three
weeks ago, that premium being itself a decline from
one to 9 cents. The market has been unable to detect
any evidence of British Exchange control operations
during the past few weeks and in view of the action
of sterling in Paris it would seem that London is
strongly inclined to let sterling follow the course of
the dollar. The market has been exceptionally free
of utterances from London pointing to imminent
stabilization of the pound. However, it is known
that the authorities of the Bank of France and other
members of the gold bloc have made overtures to
the Bank of England aimed at early stabilization of
the pound and that the Bank for International Settlements has appointed a special committee to study
stabilization measures with especial regard to the
stabilization of the British unit. Money continues in
great abundance in the London open market, and
rates are practically unchanged from the past several
7
weeks. Two-months' bills are 4%
to 15-16%, threemonths' bills 15-16% to 1%, four-months' bills
1 1-16% and six-months' bills 1 1-16% to 13/%.
On Saturday last there was £685,000 bar gold
available in the open market, all of which is believed
to have been taken for shipment to the United
States. On Monday £980,000 was similarly disposed of. On Tuesday £870,000 was taken for

Volume 138

Financial Chrcnicle

American account. On Wednesday £1,170,000 was
taken for shipment to the United States. On
Thursday £450,000 was taken for shipment to the
United States. On Friday £415,000 was available,
the bulk of which was taken for American account.
On Saturday last the Bank of England bought
£76,083 in gold bars. The Bank of England statement for the week ended Feb. 21 shows an increase
in gold holdings of £139,143, the total standing at
£191,982,187, which compares with £142,982,859 a
year ago and with £150,000,000 recommended as a
minimum recommended by the Cunliffe Committee.
At the Port of New York the gold movement for
the week ended Feb. 21, as reported by the Federal
Reserve Bank of New York, consisted of imports
of $204,608,000, of which $105,392,000 came from
England, $67,328,000 from France, $24,236,000
from Holland, $3,352,000 from Canada, $2,583,000
from Switzerland, $1,660,000 from Colombia and
$57,000 from Belgium. There were no exports.
The Reserve Bank reported a loss through net
increase in gold held under earmark for foreign
account of $1,651,000. A footnote stated that
"imports from France of $3,179,000 of gold previously
acquired and included in the monetary gold stock
of the United States."
In tabular form the gold movement at the Port
of New York for the week ended Feb. 21, as reported by the Federal Reserve Bank of New York,
was as follows:
GOLD MOVEMENT AT NEW YORK, FEB. 15-FEB. 21, INCL.
'Imports.
Exports.
8105,392,000 from England
67,328,000 from France
24,236,000 from Holland
3,352,000 from Canada
None
2,583,000 from Switzerland
1,660,000 from Colombia
57,000 from Belgium
$204,608,000 total
Net Change in Gold Earmarked for Foreign Account.
A footnote to the Reserve Bank's weekly statement of the gold movement
is as follows:
"Imports from France of $3,179,000 of gold previously acquired and
included in the monetary gold stock of the United States."

The above figures are for the week ended Wednesday evening. On Thursday, Washington's Birthday
and holiday, there was no report issued. On Friday
$11,987,200 of gold was received, $9,859,700 from
England, $1,622,600 from France and $504,900 from
Holland. There were no exports, or change in gold
held under earmark for foreign account. A footnote
to the report said "Import from France of $3,721,400
of gold previously acquired and included in the monetary gold stock of the United States." Friday's
statement also said, "We have been notified of the
receipt at Seattle between Feb. 5 and Feb. 21 of
approximately $671,000 of gold from China."
Canadian exchange continues at a slight discount.
On Saturday last, Montreal funds were at a discount
of from %% to 4
3 %. On Monday the discount
_ _ -was
/
38% to %%,on Tuesday M% to 4
7 %,on Wednesday %% to 4
3 %,on Thursday, Washington's Birthday, there was no market in New York, and on Friday at 9-16% discount.
Referring to day to.day rates,_sterling exchange
on Saturday last was firm in terms_ of the -dollar.
Bankers' sight was $5.093.@$5.103
8.cable transfers-,
_/
$5.09/
the
Monday
pound was still
5 8@$5.10%. On
_
firmer. The range was $5.1331.@$5.14A-f
-o—
r
—
era' sight and $5.133/
2 for cable transfers.
2@$5.143/
On Tuesday sterling suffered a sharp reaction.
Bankers' sight was $5.04@$5.0914; cable transfers,
$5.04W.@5.09/. On Wednesday, after a, weak



1279

opening sterling moved up sharply. The range was
$5.07@$5.08% for bankers' sight and $5.073@
$5.0914 for cable transfers. On Thursday, Washington's Birthday, there was no market in New York.
On Friday sterling was steady; the range was $5.07%
@$5.0734 for bankers' sight and $5.071A@$5.08 for
cable transfers. Closing quotations on Friday were
$5.073
4 for demand and $5.07M for cable transfers.
Commercial sight bills finished at $5.063/
2; 60-day
bills at $5.063; 90-day bills at $5.053
4; documents
for payment (60 days) at $5.064 and seven-day
grain bills at $5.07/. Cotton and grain for payment closed at $5.061
/.
XCHANGE on the Continental countries continues demoralized in consequence of the general
foreign exchange situation and the uncertainties arising
out of the relationship between the dollar and the
pound. As just noted, sterling exchange is showing
an easier undertone with respect to French francs,
or gold. This is an anomalous situation due to the
evident willingness of London to approach dollarsterling parity and to disregard the course of the
franc. It would appear on first sight that since the
dollar is now fixed at a new gold parity there should
not be a great difference between a French gold franc
and a new gold dollar. Hence if sterling was approaching dollar parity it should not be weakening in terms
of the franc. The situation is hard to understand,
but it is clear that the franc is under pressure on the
Continent and that this is so is evident from the fact
that there is a heavy discount on forward francs
equivalent to about 7% per annum. This discount
has led foreign bankers during the past week or more
to exchange their spot francs for futures and to invest
the proceeds in the London bill market. The rate of
interest on the bills is extremely slight, but this fact
is unimportant since it represents only a small part
of the profit realized on the transaction. The heavy
discount on future francs indicates that European
bankers still entertain grave doubts about the French
political and monetary prospects. Money and credit
are tightening in Paris. In the New York market
there is less talk of a possible suspension of the gold
standard by the Bank of France and it is felt that the
Bank has demonstrated quite clearly that it has been
undergoing no serious strain on its reserve ratio.
It is known that M. Clement Moret of the Bank of
France is making urgent efforts to win the British
authorities over to immediate stabilization of the
pound. French financial circles feel that the new
Doumergue cabinet, being assured of a majority in
Parliament, will succeed in balancing the budget and
in restoring confidence. The Government is pledged
to maintain the gold standard with the present valuation of the franc, and competent authorities state that
there will be no attempt to follow the example of
Czechoslovakia in reducing the gold content of the
franc. Paris is cheered by the fact that the loss in
gold holdings shown by the statement of Feb. 16 is
only 447,791,340 francs, as against a loss of 1,977,746,198 a week ago. Total gold holdings now stand
at 74,434,915,823 francs, which compares with 81,320,100,990 francs a year ago and with 28,935,000,000
in June 1928 when the unit was stabilized. The
Bank's ratio is satisfactory, standing at 77.65%,
which compares with legal requirement of 35%. The
comparative relation of the leading European currencies still on gold to the United States dollar may
be seen from the following table:

E

Financial Chronicle

1280
France (franc)
Belgium (belga)
Italy (lira)
Germany (mark)
Switzerland (franc)
Holland (guilder)

Old Dollar
Parity
3.92
13.90
5.26
23.82
19.30
40.20

New Dollar
Parity.
6.63
25.54
8.91
40.33
32.67
68.06

Range
This Week.
6.51 to 6.56g
23.08 to 23.27
8.60 to 8.71
39.19 to 39.58
31.96 to 32.20
66.55 to 67.08

The Czechoslovakian crown devaluation law became formally effective on Monday. A minimum
gold cover of 25% has been instituted for sight
liabilities to replace the former 30% cover of gold
and foreign exchange. The ratio is now 43%, permitting a theoretical increase in the actual sight
liabilities of the Bank of 11,000,000,000 crowns from
6,517,000,000 crowns. As a result of the law the
Bank's gold and foreign exchange reserves are now
increased to 2,787,000,000 crowns from the former
2,38,000,000 crowns, which consisted of 1,707,000,000 crowns gold and 680,000,000 crowns foreign exchange. According to Berlin criticisms the devaluation of the Czechoslovak unit is deprecated as setting
a bad precedent. Berlin bankers say that this is the
first time that the Czechoslovak currency has been
openly depreciated in order to facilitate'competition
for international trade. Dr. Hjalmar Schacht,
President of the German Reichsbank, in an address
on Thursday, before the League of German Bankers
asserted that the German Government will not indulge in any currency experimentation. He said the
Government was determined to protect the individual purchasing power of the laborer and the man
who saves, and there could, therefore, be no question
of its determination to protect the mark from
depreciation.
The London check rate on Paris closed on Friday
at 77.37, against 77.75 on Friday of last week. In
New York, sight bills on the French center finished
on Friday at 6.55, against 6.523/ on Friday of last
week; cable transfers at 6.56, against 6.533/2, and
2.
commercial sight bills at 6.55, against 6.543/
Antwerp belgas closed at 23.26 for bankers' sight
bills and at 23.27 for cable transfers, against 23.13
and 23.14. Final quotations for Berlin marks were
39.57 for bankers' sight bills and 39.58 for cable
transfers, in comparison with 39.24 and 39.25.
Italian lire closed at 8.59 for bankers' sight bills and
at 8.60 for cable transfers, against 8.71 and 8.72.
Austrian schillings closed at 18.90, against 18.80;
exchange on Czechoslovakia at 4.15, against 4.26; on
Bucharest at 1.013/2, against 1.013; on Poland at
18.84, against 18.75, and on Finland at 2.269,
against 2.25. Greek exchange closed at 0.93% for
bankers' sight bills and at 0.943 for cable transfers,
against 0.933 and 0.933.

Feb. 24 1934

extent sold this gold to the United States since this
country started buying gold abroad. Spanish peseta
is steady and is kept in close relationship to the
French franc. The Scandinavian currencies of
course, move in harmony with sterling, to which
they are allied.
Bankers' sight on Amsterdam finished on Friday
at 67.07, against 66.79 on Friday of last week; cable
transfers at 67.08,against 66.80,and commercial sight
bills at 67.05, against 66.70. Swiss francs closed at
32.19 for checks and at 32.20 for cable transfers,
against 32.09 and 32.10. Copenhagen checks finished at 22.66 and cable transfers at 22.67, against
22.69 and 22.70. Checks on Sweden closed at 26.17
and cable transfers at 26.18, against 26.21 and 26.22;
while checks on Norway finished at 25.49 and cable
transfers at 25.50, against 25.54 and 25.55. Spanish
pesetas closed at 13.51 for bankers' sight bills.
and at 13.52 for cable transfers, against 13.44 and
13.45.
XCHANGE on the South American countries
presents no new features. These units are of
course greatly demoralized by reason of the unsatisfactory relationship of sterling, dollars, and French
francs. Besides, they continue under the restrictive
influence of government control boards, though the
Argentine peso has been emancipated to a great
extent in the past month. The official rate for the
peso has been ruling around 33.50-34.00, but the free
market in New York quoted the peso this week at a.
range of from 25.80 to 26.10. Satisfactory conditions
cannot be expected to develop in South American
foreign exchange until sterling becomes completely
stabilized and British interests resume their position
as chief lenders in South America.
Argentine paper pesos closed on Friday nominally
4 on
at 33% for bankers' sight bills, against 333
Friday of last week; cable transfers at 34, against 34.
Brazilian milreis are nominally quoted 8.47 for
4for cable transfers, against
bankers'sight bills and 83
is nominally quoted
exchange
Chilean
83/ and 83
4.
103', against 104. Peru is nominal at 24.75,
against 24.00.

E

XCHANGE on the Far Eastern countries is
inactive and has been ruling fractionally lower
this week on balance, although on numerous occasions
both the yen and the Chinese units have shown a
tendency to firmness in narrow trading. The Far
Eastern units are all influenced by world silver prices
and the Chinese currencies are governed entirely
by silver prices, as silver is the chief medium of
exchange in the Far East. The Indian rupee follows
XCHANGE on the countries neutral during the the pound sterling, to which it is attached at the
war follows very closely the trends of the past fixed rate of is. 6d. per rupee.
presenting no new features of importance.
weeks,
few
Closing quotations for yen checks yesterday were
Holland guilders and Swiss francs are ruling firmer 30.05, against 30.25 on Friday of last week. Hong
in terms of Paris, so that there is a virtual cessation Kong closed at 39 9-16@39%,against 393(4),39 5-16;
of gold movements to Paris from the Dutch and Shanghai at 35%, against 35@35 8; Manila at
Swiss centers. The latest statement of the Bank 50.30, against 503; Bombay at 39%, against 383/2,
of The Netherlands shows that since the gold con- and Calcutta at 39%, against 383/2.
tent of the dollar was reduced the withdrawal of
gold from the bank has reached approximately 106,URSUANT to the requirements of Section 522
000,000 guilders or (approximately $72,000,000 at
of the Tariff Act of 1922, the Federal Reserve
gold
went
new-dollar-guilder parity). Most of this
Bank
is now certifying daily to the Secretary of the
the
franc.
against
to Paris to support the guilder
the buying rate for cable transfers in the
.Treasury
in
nationals
Dutch
Most of the gold obtained by
of the world. We give below a
countries
different
there.
deposit
on
left
was
market
the London open
just passed:
week
the
for
record
have
some
to
hoarders
these
that
understood
It is

E

E




P

•

Volume 138

Financial Chronicle

FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
FEB. 17 1934 TO FEB. 23 1934, INCLUSIVE.

Country and Monetary
Unit.

Noon Buying Rate for Cable Transfers in New York.
Value On United States Money.
Feb. 17. Feb. 19. Feb. 20. Feb. 21. Feb. 22. Feb. 23.

$
EUROPE.188200*
.187500* .187340* .187020* .187000*
Austria,fa:shilling
.232241
.231369
.230966
.231092
.231000
Belgium. belga
.013425*
.013650* .013575* .013650* .013900*
Bulgaria, lev
.041375
Czechoslovakia, krone .042490 .041200 .041234 .041356
.226472
.226491
.226408
.227525
.229210
Denmark, krone
England, pound
.072583
5.099083 5.136833 5.072142 5.072333
sterling
.022458
.022383 .022508 .022441 .022416
Finland, markka_
.065530
.065288 .065176 .065250 .065348
France, franc
.394958
Germany. reichsmark .391966 .392218 .393492 .394184
.009350
.009304 .009300 .009320 .009315
Greece. drachma
.669714
.667946
.666992 .666157 .
Holland, guilder
.295000*
.294166*.
.294233*
.294566*
.294566
Hungary. Pengo
.086207
.086782 .086748 .086721 .086568
Italy, lira
.254872
.256083 .258000 .254830 .2548/8
Norway, krone
.188380
.188340 .188050 .187500 .188080
Polann, zloty
.046605
.046750 .047108 .046925 .046752
Portugal, escudo
.010035
.009983
.010030
.010087 .010100
Rumania, leu
.134807
.134260 .134089 .134150 .134292
Spain, peseta
.261575
.262175 .264916 .261758 .261708
Sweden, krona
Switzerland, franc_ _ .320130 .319630 .320023 .320461 HOLI- .321371
.022537
DAY
Yugoslavia, dinar_ _ _ _ .022660 .022733 .022587 .022390
ASIAChina.352916
Chotoo (yuan) dollr .352500 .352500 .348750 .346250
.352916
Han kow(yuan)der .352500 .352500 .348750 .346250
.351875
Shangheyuanldorr .351718 .352343 .348125 .346562
.352916
.346250
.348750
Tientsin(yuan)doll .352500 .352500
.390625
Hongkong, dollar_ .390312 .390937 .388125 .386562
.381750
India. rupee
.382550 .385937 .382125 .382187
.298187
Japan, yen
.301000 .303050 .299250 .298800
.593125
Singapore (S.S.) der_ .595000 .599375 .596250 .591875
AUSTRALASIA4.038333
Australia, pound
4.059166 4.089583 4.043333 4.040000
4.049166
New Zealand, pound.4.069583 4.100000 4.053333 4.050000
AFRICA5.011250
South Africa, pound...5.043750 5.081562 5.010000 .012500
NORTH AMER..993177
Canada, dollar
992343 .993854 .991875 .991822
.999750
Cuba peso
999550 .999550 .999750 .999750
.277320
Mexico, peso (silver). 277350 .277920 .277400 .277360
.991125
Newfoundland, dollar 990000 .991500 .989250 .989500
SOUTH AMER..338266*
Argentina, peso
.340050* .342533* .338000* .338250
Brazil mIlreis
.084950*
084850* .085287* .085200* .085400
Chile. peso
.096875*
.096000* .097650* .096875* .096875
Uruguay, peso
.796666*
.795000* .794566* .795000* .794333
Colombia, peso
.724600*
.699300* .704200* .704200* .709200
* Nominal rates; firm rates not available.

HE following table indicates the amount of gold
bullion in the principal European banks as of
Feb. 22 1934, together with comparisons as of the
corresponding dates in the previous four years:

T

Banks of-

1934.

1933.

1932.

1931.

1930.
£
151.979,238
343,682,742
113,020,600
100,678,000
56,126.000
36,418,000
33,666,000
22,437,000
13,560,000
9,574,000
8,146,000

£
£
2
England- 191,982,187 142,982,859 121,347,773
France a..,._ 595,479,326 650,560,808 590,518,450
Germany b.
43,706,700
15,495,800
39,213,350
Spain
89,942,000
90,354,000
90,467,000
Italy
60,854,000
63,263,000
76,757,000
Netherlands
71,800,000
69,450,000
85,636,000
72,465,000
Nat. Belg'm
78,154,000
74,743,000
62,377,000
Switzerland
88,965,000
67,548,000
11,437,000
Sweden_
11,440,000
14,566,000
8,160,000
Denmark_.
7,399,000
7,398,000
Norway
6,559,000
8,015,000
6,574,000

£
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_ 1,213,871,313 1,262,572,017 1,139,166,923

979.636.289

889,287,580

1.222 191 901 1 one WAR RAR 1 1R1 AAR RR6

A7R037R0i9

887.883.270

Prey. week

a These a o the gold holdings of the Bank of France as reported in the new form
of statemen . b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year Is £1,169.550.

Thellssues That Center About Austria.
It would be difficult to find a historical parallel
for the situation which at the moment obtains in
Austria. On Monday night Theodore Habicht, a
German who bears the unofficial title of InspectorGeneral of the Nazi forces in Austria, broadcast
from Munich an offer to the Austrian Government
of an eight-day armistice during which the Austrian
Nazis were to be strictly forbidden to "attack the
Austrian Government in any way whatever." The
purpose of the armistice (we quote from the announcement as given textually in the New York
"Times"), was to enable the Government to say
whether, "inS view of the sacrifices of the recent
catastrophe and in view of the terrible possibilities
of the future," it would continue its course, or
whether it was "prepared to have Austria come together with the National Socialist movement in
order to prepare for a happier future." If the attitude of the Government in the interval was not in
accord with the "intention" which the announcement
expressed, or if no answer was forthcoming, the fight
was to be "resumed with all vigor" on Feb. 28, when
the armistice expired. The extraordinary spectacle




1281

is thus presented of a German subject, speaking from
Germany without the official sanction of his Government, demanding a catagorical reply from Austria to a question which, from the Nazi standpoint,
must be answered in only one way, proclaiming an
eight-day suspension of hostilities in order that the
Austrian Government might make up its mind, and
promising a renewal of fighting if the reply were unfavorable or the demand were ignored.
Under any ordinary circumstances, such an announcement would be regarded as not only an exhibition of insolence to be promptly disavowed and
its author punished, but also as an unfriendly act
of the serious kind that has often led to war. Conditions in Austria, however, are in no respect ordinary, and while the German Government is reported
to have washed its hands of responsibility for the
incident and to be disturbed that it should have occurred, the question which Herr Habicht presumed
to broadcast by radio goes to the heart of the Austrian situation. Whether or not fighting is resumed
next Wednesday or before or after that day, the
question which all Europe is asking is how long
Austria can delay becoming in fact a Nazi State,
linked to Germany in sympathy and political
methods if not in a formal union. It is by no means
clear that the German Government could effectively
check the Austrian Nazis, even if it desired to do so,
without risking a revolt at home; it is still less clear
that a Nazi conquest of Austria would not be welcomed in Germany even at the cost of serious diplomatic complications.
The position of the other Powers under the circumstances is one of difficulty and hesitation. The
official communique which was issued jointly by the
British, French and Italian Governments on Feb. 17
is not a very vigorous document. Replying to the
elaborate statement regarding German interference
in Austrian affairs, drawn up by the Austrian Government with a view to the appeal which it intended
to make to the League of Nations, the communique
merely announced that "the conversations which
have taken place between the three Governments on
this subject have shown they take a common view as
to the necessity of maintaining Austria's independence and integrity in accordance with the relevant
treaties." The treatiesreferred to are, presumably,
the Treaty of Versailles, in which Germany acknowledged and agreed to respect the independence of
Austria and to accept its independence as inalienable "except with the consent of the Council of the
League of Nations," and the Treaty of St. Germain,
which fixed the new Austrian boundaries and provided for the protection of minorities. The conflict
that is being waged in Austria, however, does not
directly involve either the independence or the
political integrity of the country; the question
directly at issue is which of several political groups
shall govern. It is admitted, even by opponents of
the Nazis, that a_Nazi Austria does not necessarily
mean a formal political union with Germany, and if
the formal independence of the country is maintained the treaties mentioned, as a matter of law, do
not apply.
What is known of the history of the communique,
moreover, shows no agreement among the three
Powers regarding what should be done beyond the
mere issuance of a declaration. The British Government has let it be known that it will not undertake any new political commitments on the Con-

1282

Financial Chronicle

tinent. Italian foreign policy on the whole tends to
follow that of Great Britain, and while Premier
Mussolini has been reported as strongly averse to
an Austro-German Anschluss and disturbed at the
prospect of a Nazi Austria as a neighbor, he is not
likely to take any step that would jeopardize the
British accord. The temper of the French Government appears on the surface to be more aggressive,
but there are serious domestic difficulties facing the
Doumergue Government, the political attitude of
the new King of the Belgians is a matter of speculation at Paris, and any political pressure upon Germany suggestive of force would be highly dangerous.
It is everywhere realized that, whatever may happen
to Austria and Germany, a spark might be sufficient
to start a general European war, and war is what
every European Government is anxious to avoid.
Meantime the press brings reports of conversations and understandings, to which Italy is a party,
which may give new meaning to the Nazi movement
in Austria. On Feb. 15 the Acting Foreign Minister of Czechoslovakia was reported as saying to
the Parliamentary Affairs Committee that Czechoslovakia could not "remain passive" if any foreign
Power entered Austria, adding that he did not mean
that troops would be sent but that concerted action
through the League would be invoked. On the same
day the Italian press sharply attacked Czechoslovakia for, it was alleged, arming and supporting the
Austrian Socialists, and declared that Italy did not
wish to see the Austrian question brought before the
League. The allegation was denied by Dr. Benes,
Czechoslovak Foreign Minister, who was visiting
Paris, but it has been known for some time that
Czechoslovakia was specially concerned over the
Austrian situation because of fear lest Chancellor
Dollfuss, in an effort to maintain himself, might
yield to the demand of the royalists for the restoration of Prince Otto,son of the last Emperor Charles,
who is recognized as the pretender to the Hapsburg
Crown. A monarchical restoration in Austria, followed as it would almost certainly be by a similar
movement in Hungary, would put in jeopardy the
independence of Czechoslovakia, the larger part of
whose territory was originally included in the Austro-Hungarian Empire.
Whether or not the possibility of a restoration is
a factor of any importance, events of the next few
days made it clear that Austria, Hungary and Italy
were drawing together. On Sunday it was announced that Chancellor Dollfuss, Premier Goemhoes of Hungary and Premier Mussolini were to meet
at Rome in March to discuss the economic and political relations of the three countries and those of the
Danube region. On Tuesday the Italian Under-Secretary for Foreign Affairs arrived at Budapest, and
official or inspired statements since have intimated
that an understanding was being reached regarding
economic and other matters affecting the two countries and Austria. The exact nature of the understanding has not been disclosed, and the official
press has denied that the formation of a three-Power
political bloc comparable to the Little Entente was
in contemplation, but reference was made to the
plan which Mussolini has for some time had in mind
to reorganize the Danube area on the basis of reciprocal trade arrangements. It is not without significance that the three countries are ones in which
the Socialists are not a power, the party having been
stamped out in Italy, defeated and apparently




Feb. 24 1934

crushed in Austria, and long held in check in
Hungary.
For the moment these three-Power approaches increase rather than diminish the uncertainty in
which the Austrian problem is still shrouded. Premier Goemboes has been credited with quite as much
opposition to an Austro-Hungarian union as others
have felt toward an Austro-German Anschluss, and
Hungarian industrialists have been repeatedly represented as feeling that a customs union with Austria
would be prejudicial to their interests. If there has
been a decided change of opinion in either of these
quarters, it can only •be, apparently, because the
undercurrent of regard for monarchy has grown
stronger, or because Italy is prepared to offer commercial advantages to Hungary sufficient to offset
what might be lost by a closer commercial agreement with • Austria. Chancellor Dollfuss was also
quoted yesterday as raising some objections to an
actual customs union with Hungary. What stands
out in the array of conflicting national interests is
the purpose of Italy to effect some radical reconstitution, economic and political, of the Danube area.
In such a reconstitution, whatever it may turn out to
.be, Austria is likely to play an important part.
It was, perhaps, with the object of diverting attention somewhat from the Austrian troubles and interposing a check to the plans of Italy in Eastern
Europe, as well as of lessening the danger of war,
that Captain Anthony Eden, Lord Privy Seal in the
British Cabinet and a prominent figure in the disarmament discussions last year, has set out on a
round of visits to European capitals to explain the
latest British proposals about disarmament. A
more unpropitious time for such a mission could
hardly have been chosen. Diplomatic pressure, the
tender of good offices, or some unexpected concessions on one side or another may avail to prevent
the Austrian quarrel from precipitating a war, but
the internal settlement seems destined to be reached
by force. With Austria torn by civil strife and
governments everywhere fearful of what the effect
may be upon their own peoples, no country is likely
to abridge voluntarily its resources for defense or
the preservation of order. The plain fact appears
to be that such general interest as there was at any
time in reducing or limiting armaments has spent
itself in long and fruitless debates at Geneva, and
the subject is no longer alive. Even the network of
non-aggression pacts with which Europe is being
covered has not been accompanied by any lessened
reliance upon armaments as the ultimate resort for
national safety, for each of the contracting Powers
has particular interests which it stands ready to
defend. As for the League of Nations, to which
France still affects to pin its faith, it appears as
only an onlooker in the present period of storm and
stress. Aside from the possibility of obtaining some
modification of the German demands, Captain
Eden's mission seems unlikely to accomplish anything of practical importance. There will be need
of quieter times and a clearer and more peaceful
outlook before a self-denying program of any kind
will find a welcome in European politics.
Agitation for Government Ownership of
Anthracite Mines.
Coupled with the subject of Government control
of the coal industry, which has been agitated at
Washington this week, is involved the question of

Volume 138

Financial Chronicle

Government ownership of the coal properties and
Government operation affecting investments running into billions of dollars and opening debatable
ground as to expediency of such an important innovation.
While the bituminous fields are scattered in many
States, East, South and West, around which great
industrial plants have been built, the anthracite
region is centered in a few counties in Eastern Pennsylvania, and if the subject is to be given serious
attention efforts may first be directed to ownership
of the hard coal properties.
Years ago, when production of anthracite was limited to methods now regarded as extremely primitive, anthracite mining and shipping was the source
of large revenues which created great fortunes.
With very little regulation of the industry, the mine
workers had a hard struggle, and their living conditions were such as often to provoke agitation for
relief, many newspaper articles having been published on the subject.
The old conditions were remedied long ago and
some companies constructed comfortable homes to
house families of the workers. Those were the days
of the Molly Maguires, a secret organization which
did not stop short of murders to accomplish its aims.
Under the leadership of the late Franklin B. Gowen
prosecutions were pressed in the courts of Pennsylvania, the guilty parties were convicted and the
secret organization was disrupted.
An important step was taken when the Federal
Government, through long legal proceedings, caused
a segregation of the anthracite properties from the
railroads which had been operating the mines
through subsidiary corporations in order to control
the tonnage and reap the profits derived by the coal
traffic. This change may have been right in priAciple, but the benefits to the miners, to consumers,
mine operators and the carriers has been small if
not negligible.
No additional railroads have built tracks to the
anthracite region, and the tonnage from the mines is
still moving over the same railroads to the customary
destinations along their lines.
There have been wonderful improvements in mining conditions affording greater protection to the
mine workers as to safety. Modern machinery has
been introduced for speedy handling of the mine
products and separating the coal into numerous
sizes for domestic consumption and for cleaning the
coal or dirt and slate which cannot be burned: Use
of electricity was an important innovation for the
underground work, mightily lessening the tasks of
the mine workers.
Rate regulation is carefully supervised by the
Inter-State Commerce Commission, which also sees
that there is no discrimination among receivers, so
that no distributor may have any undue advantage
over his rivals.
With the improvements in machinery it has become possible for production largely to exceed consumption, a fact which has tended to keep the trade
in a somewhat unsettled condition. During the summer months, when consumption is at a minimum,
prices are invariably lowered in order to induce
the filling of bins for winter consumption, but from
fall to spring higher prices prevail. Railroads have
been allowed what are regarded as fair rates and the
anthracite tonnage is a good source of revenue for
the carriers.




1283

The burden of the industry rests upon the operators. One of the large companies has never paid a
dividend in its very long career, and within recent
years that corporation has expended $30,000,000 to
improve its mines with the purpose of lessening the
cost of production and improving the product, but
the change in revenue has been disappointing and
unproductive of dividends.
The industry has met with strong competition by
the development of more modern kinds of fuel. Coke
has received the attention of capitalists who have
formed corporations for the preparation and marketing of that fuel, and they have advertised liberally
to make their product attractive at prices lower than
anthracite. Various sorts of coal mixtures are also
on the'market. Oil has been pressed for fuel in the
large cities, and in some sections natural gas has
proved to be a competitor. In some cities bituminous coal is used at central steam plants to heat
buildings. Moreover, there have been imports of
anthracite from Russia which have cut into the
Canadian market more than in the States.
• Enormous investments in hydro-electric plants
have been made by utility companies, which distribute electric current for power and light over a
large territory, thus competing against coal. To
better control hard coal an Anthracite Institute was
formed and experts have labored hard to better market conditions and increase consumption, but during
the depression difficulties arose which were hard to
overcome.
The Lehigh Coal & Navigation Co., which is known
as the "Old Company" in a report just issued, shows
a surplus of $11,295,605 at the end of 1933, which is
$1,175,000 better than at the close of 1932. The company's consolidated income last year was $826,118
compared with $942,369 for 1932. This is one of the
operating companies which pays a dividend, the distribution being 40c. per annum on 1,929,930 shares
/
4
having no par value, the stock selling around 93
per share.
The industry has long been well organized by labor
unions, but there has developed a rival union which
is likely to complicate relations with the employing
companies and make more difficult the settlement
of wage and other problems.
Philadelphia's Transit Problem.
In view of the talk of "subway unification" in this city, the experience in the neighboring city of
Philadelphia, the third city in the Union, in point
of population, will not be without interest. In that
city of 1,200,000 inhabitants, all of the subways and
one important elevated line were constructed and
are still owned by the municipality and leased to
the operating company, the Philadelphia Rapid
Transit Company, which operates the entire transit
system including subways, elevated railroads, the
651 miles of surface lines and in addition owns and
operates bus lines and nearly all of the taxi cabs
serving the entire population, the whole constituting a monopoly for these forms of passenger transportation.
Except as to the number of cars in daily use,
which naturally during the rush hours are overcrowded, and complaints as to taxi fares, the service
is probably all that may be expected from the standpoint of daily riders. There are few interruptions
and the service generally is reliable.

1284

Financial Chronicle

The single carfare is eight cents with two tokens
for 15 cents. Bus fares are ten cents. Between
the subways and elevated lines there are liberal
transfers to surface lines, except at intersecting
points in the business centre where exchange tickets
are sold for three cents. For many years five cents
was the prevailing fare, that charge having been a
hobby of the late Thomas A. Mitten, who was brought
from Chicago to Philadelphia by Morgan interests
in an effort to put the system upon a paying basis,
a proposition which has never succeeded.
The Market Street elevated line extends from the
western city boundary to about Thirtieth Street and
thence by subway tunneling the Schuylkill and
under Market Street, the central business thoroughfare, to the Delaware River near the ferried of the •
Pennsylvania and Reading Railroads. The western
terminus connects with an electric line to Norristown, with several trolley and bus lines.
The city was so well covered by surface lines prior
to the advent of high speed lines that surface rails
have since been removed from many streets and
still others remaining are not utilized.
Philadelphia differs geographically from New
York City as it has large and populous suburban
territories on the North, West, South and Northeast, all of which are covered by a great number of
feeder surface lines, including one high speed electric road to Norristown and there also are numerous bus lines throughout the suburban districts
with routes terminating at the city line. As a group
these suburban companies are valuable feeders to
the Philadelphia lines.
With a view to improvement of the service and
economy in operation, a survey has just been made
by the Rapid Transit Company which, when the
data are compiled, will show where passengers entered a car and where they left the car.
The municipality maintains a transit department
which has supervised all new construction and has
compiled very valuable records. In addition engineers have been employed from time to time to
study the transit situation and among the reports
on file is one made under the direction of Milo B.
Maltby. Records of the Public Service Commission
hearings also contain statistics compiled from many
angles.
But still the P. R. T., as the system is termed,
continues to pile up deficits year after year, the
company being in debt to the city for rentals of
the subways and being unable to pay dividends to
shareholders.
The transit system of the Quaker City dates from
1858, when the Frankford & Southwark Co. constructed and operated the first horsecar line, following which there was a great rush for charters
and franchises, which the Pennsylvania Legislature
liberally granted for 999 years, a period regarded
as perpetual. When the changes from horse cars to
cables, from cables to trolleys, from trolleys to elevated roads and then from elevated to high speed
subways, all within a period of 76 years, are considered, no one may surmise the changes which will
occur in urban transportation during the remaining 923 years of the franchise periods.
Based upon these long-term franchises running
for 30 generations consolidations were pyramided,
leases most favorable to the franchise owners having been obtained. Only a nominal amount was
paid in on the original shares. While the return




Feb. 24 1934

based upon par as provided by the leases appears
reasonable, yet the return on the nominal capital
paid in is very great and the leases gave the shares
of the "underliers" as the original companies are
called, a very high market value in former years.
In subsequent years as consolidations were created, the financing on each occasion was based upon
the high rentals and new leases provided for the
guarantee of big dividends which still hold good
and the heavy charges of the present operating company are largely due to the pyramid of leases, one
following another at high rentals, all of which must
be paid before the capital invested in the modernized system can get a proper return. This condition
applied with the most force to the municipality
which has expended many millions of dollars upon
subway construction and then leasing the improvement to the operating company at a nominal rental,
with a provision for periodical increases.
Among the owners of stocks of the underliers are
a number of estates and the heirs generally refuse
to make any concessions to help the city out of its
dilemma, most propositions for reduction in rentals
being rejected. With the operating company unable
to pay the city rentals agreed upon for the subways
and paying no dividends to its shareholders, appeals
have been made to the courts for aid.
This movement has given the city representation
upon the P. R.T. Board of Directors and apparently
affairs are gradually shaping to a point when the
city will appeal to the courts for a readjustment of
the entire situation in order that progress may not be
blocked for over 900 years. One effect of city representation has been a reduction in management costs.
Consolidation by leases proceeded gradually until
requirements for new construction following trolley
developments practically merged the numerous
street railways into two systems, the Electric and
Peoples and the Traction Company, both of which
were leased to the Union Traction Co., which then
was leased to the Philadelphia Rapid Transit Co.
While the par value of Union Traction is $50 and
a dividend of 6% on par or $3 per year was guaranteed by P. R. T., the amount paid in on Union Traction is only $17.50 per share and upon this amount
of capital invested the rate of dividend is about 17%.
As a concession the Union Traction shareholders
have consented to a reduction of the dividend to
$1.50 a share per annum. With this precedent,
strong efforts are being made to have owners of
the other underlying companies accept reductions
in their rentals, the purpose being to have such a
reduction in the fixed charges that the credit of
the operating company, P. R. T. will be restored to
a point which will justify the city of Philadelphia
in expending more funds for improvements with
encouragement of obtaining a fair return upon such
investments of public funds.
The present movement is directed on the line that
municipal ownership with private operation is the
solution of the Philadelphia problem. The city is
slowly working upon three subway operations and
demand will shortly arise for a fourth in order that
a high speed electric line over the Delaware River
Bridge, to be built with Federal aid, may have
proper subway connection with the other subways
now in operation.
Transit facilities are the legs of a municipality
and the problem of better transit comes directly
home to every citizen, but capital, coming from

Volume 138

Financial Chronicle

either private or public sources, wants some guarantee of an adequate return.
All of the branches of the Pennsylvania Railroad
and of the Reading Company entering Philadelphia
have been electrified to suburban points, a recent
improvement which has tended to curtail traffic on
the P. R. T. system to suburban points, but it is
possible that this invasion has reached its height.

A satisfactory adjustment of rentals which will
conform to modern conditions would be of permanent benefit to the city of Philadelphia, to the operating transit company and to all of the great body
of investors who have witnessed a heavy decline in
market values of their securities because of the uncertainties which have long surrounded the mixed
situation.

Gross and Net Earnings of United States Railroads for the
Calendar Year 1933.
In the recovery that marked the last eight months
of the calendar year 1933—that is the period following the general banking suspension in 'March—the
railroads cannot be said to have fully shared. For
the full twelve months of that year their gross earnings do not quite equal those of the calendar year
preceding, though the decrease is much below what
it was during the first six months of the year, indicating that part of the falling off was made good
in the last half of the year, giving the roads at least
one bright feature to relieve the gloom of the year,
and in addition the net earnings show a substantial
increase, which constituted still another bright
feature, due however, entirely, to a rigid curtailment
of operating expenditures.
In interpreting the figures the important fact to
remember is that in the comparison with 1932 we are
comparing with earnings which were reduced in
prodigious sums for three consecutive years and in a
way that has no parallel in the history of American
roads and doubtless no parallel in the history of the
railroads of any other land, country, or any other
time or age. To impress that fact indelibly •upon
the mind of the reader one single statement will
suffice for the purpose, namely that in each of the
three years 1930, 1931 and 1932, the gross operating
revenues showed a shrinkage running in excess of
1,000 million dollars—and these were cumulative
losses—the 1930 total of the revenues having fallen
$1,014,198,837 below that for the calendar year 1929,
the 1931 total $1,105,303,735 below that of 1930, and
the 1932 total $1,071,798,819 below that of 1931. To
have now on top of these prodigious cumulative
losses a further falling off in even the relatively
small sum of $27,892,564 furnishes eloquent testimony to the way in which these rail carriers have
had their revenues cut down during the prolonged
period of depression extending from 1929 to 1933.
In the net earnings the roads suffered only slightly
less severely, the one encouraging feature here having been the substantial reduction effected in the
expenses during 1933 enabling the roads thereby to
overcome a part of the cumulative losses in net sustained in the three years preceding. In 1930 the net
earnings (before the deduction of the taxes) suffered
a contraction of $432,368,693; in 1931 a further contraction of $395,804,589, and in 1932 a still further
contraction of $244,431,640, followed now by a gain
in net earnings of $126,471,171. The result of all
this is that as against a gross revenue of $6,339,246,882 in the calendar year 1929, the amount for 1933
is down to $3,128,862,541, the total for the last mentioned year being barely 50% of what it had been




four years before. In the case of the net earnings, the
amount for 1933, even after the substantial improvement in that year, is still only $859,639,828, while
back in 1929 it was $1,798,200,253. Here again
the total is shown to have been cut in half. In the
tables which follow we show the totals'for 1933 as
compared with 1932 for the full twelve months and
also furnish comparisons for the first six months and
the second six months separately.
Inc. (-I-) or Dec. (—).
1932.
1933.
Jan. 1 to Dec. 31—
—942 0.39%
242,053
241,111
Miles of road (165 roads).—
33.128,862,541 83,156,755.105 —327,892,564 0.88%
Gross earnings
—154,363,735
2,423,586.448
2,269,222,713
617%
Operating expenses
—4.24%
76.77%
72.53%
Ratio of exps. to earnings....
8859,639,828 3733,168.657 +8126,471,171 17.25%
First Stz Months— —Second Ste Months
1932.
1933,
1932.
1933.
31,430,226,871 $1,599,191,879 31.698,635,670 81,557,563.226
Gross earnings
Operating expenses_ 1,078.094,945 1,277,738,992 1,191,127,768 1,145,847.456
Net earnings

Net earnings

3352,131,926

3321,452,887

8507,507.902

3411,715,770

This segregation of the year into two half-yearly
periods is interesting as indicating the change for
the better which marked the results for the greater
part of the second half of the year. In the first six
months the gross revenues still fell heavily behind,
the loss reaching roughly $169,000,000, though the
net earnings showed a gain of nearly $31,000,000.
In the second six months the gross earnings recorded
a gain of $141,000,000 (though not sufficient to extinguish the loss of the first six months) while the
net earnings bettered those of the same six months
of the previous year in the amount of approximately
$96,000,000, which added to the gain of $31,000,000
in the first six months produced a gain of roughly
$126,000,000.
The truth is, however, that the dividing line as
between the poor results and the improving results
ought to be drawn between March and April and
then a further dividing line ought to be drawn between September and the remainder of the year. In
the opening months of 1933,conditions, as everybody
knows, were still unfavorable in a very marked degree. January held out the promise of some change
for the better, but the promise failed of being realized. Consequently the gross earnings suffered a
shrinkage (as compared with the diminutive revenues of the preceding year) in amount of $46,000,776,
though the loss in the net proved no more than
$361,700. In February unfortunately there came a
new slump and in reviewing the figures for that
month we found ourselves obliged to say that in the
long series of shrinkages in the revenues of United
States railroads, continued month after month ever
since October 1929, the current statement for February 1933 must be considered the poorest and the
most disappointing. The result was that our February tabulations showed a falling off as compared
with the low figures of 1932 of no less than $52,380,018 in the gross revenues, or 19.67%,and though this
was attended by a reduction in expenses of $37,653,007, or 17.93%, it left a loss in the net earnings

1286

Financial Chronicle

in the sum of $14,727,411, or 26.21%. March, of
course, proved dismal in the extreme. Business depression in the United States had been steadily
growing in intensity, after having been uninterruptedly in progress during the whole of the three
preceding years, but in March trade activity was
brought to an almost complete standstill by the bank
holidays, or bank moratoria, which by Presidential
order extended over a period of a week or more to
all the banks in the United States. These bank holidays involved a virtually complete suspension of
banking activities, and in particular they tied up
banking deposits, rendering it impossible to make
use of checks against such deposits, which checking
accounts constitute the prime and indispensable
factor in the conduct of business in these modern
times. Accordingly trade and business were interfered with to an incalculable degree. In this state
of things further contraction in the already unprecedently low volume of traffic over the railroads was
inevitable. And with traffic thus further cut down
the losses in earnings, gross and net, even when compared with the inordinately low figures of 1932,
followed as a matter of course. Our March compilations showed that the further loss in gross earnings
reached $69,022,941, or 23.89%, and while operating
expenses were reduced in amount of $43,766,928, or
19.85%, this still left a new shrinkage in the net
earnings in amount of $25,256,013, or no less than
36.95%.
April marked the turning point. Business revival
was now actively under way in all parts of the
United States, and though it was too soon as yet to
find a full reflection in the traffic and revenues of
the roads, the indications of a change for the better
were clear and unmistakable. Our April compilations showed $40,180,139 decrease in gross, or
15.02%, accompanied by a reduction in expenses in
the sum of $36,503,346, or 17.28%, leaving a loss in
net of only $3,676,793, or 6.54%. Business revival
now progressed in every direction, and our May compilations actually showed a small increase in gross
revenues as compared with the small figures of the
previous year, this being the first time any monthly
return had shown any improvement in gross earnings since away back in September 1929. The roads
had the additional advantage that the month of May
1933 contained an extra working day (there having
been only four Sundays in May 1933 as against five
Sundays in May 1932) but trade revival was the
underlying factor responsible for the great change.
Our May compilations registered an increase of $3,584,364 in the gross revenues, or 1.41%, and as concurrently expenses were reduced in the sum of $23,843,766, or 11.52%, this yielded an improvement in
the net revenues of $27,428,140, or 57.85%. In June
improvement was now the order of the day in railroad earnings owing to the way business activity
was expanding, and as a consequence our June compilations now showed a large increase in gross earnings as compared with the poor figures of the preceding year, the increase reaching $35,484,283, or
14.43%, and as there was at the same time a reduction of $11,945,657 in operating expenses, or 6.01%,
the result was an improvement in the net earnings
of $47,429,940, or over 100%, the net for June 1933
standing at $94,448,669, as compared with $47,918,729 for June 1932. In brief, then, it may be said that
while the turn in the tide came in April, the change
was not reflected in a very substantial degree until



Feb. 24 1934

June, the closing month of the half year, though because of the reductions in expenses a decided improvement in the net appeared also in the month of
May.
The returns now became increasingly favorable.
The new Administration dedicated itself to bringing
about a higher level of values all around, and in the
belief that this expectation would be realized and
that the rising level of values lay immediately ahead
and that there was little danger of incurring a loss
in any event even though consuming demand should
not respond immediately, activity was stimulated in
many different directions. This set things agoing
with great rapidity, a speculative demand being
added to the ordinary normal demand, while at the
same time commodity prices also moved upward—
all in a perfectly startling way. To many the millenium seemed actually in sight. Agricultural prices
were advanced with great rapidity and the rise continued for many months. As one illustration spot
cotton here in New ;York, which had sold at 5.90c.
the previous Feb. 1, sold as high as 11.75c. on
July 18. Then wheat, which had sold at Chicago
on Jan. 3 1933 at 441/
2 cents for the May option, sold
on July 18 at $1.171/
4 for the July option. Enormous
crop shortages contributed powerfully to the upward figure. In July it appeared that a gigantic
speculation underlay both the rise in commodities
and the rise ,in securities, and as a consequence a
prodigious collapse occurred on the Stock Exchange
as well as in grain and other commodities. From
that time on, which was the latter part of that month,
trade and business slowed down considerably in
many lines of trade and no indication of a new revival occurred until very near the close of the year.
The returns of railroad earnings which came along
from month to month reflected these changing conditions. They became extremely favorable in the
summer. The remarkable improvement in the net
earnings furnish the most striking evidence of this.
It has already been shown that for the month of
June our tabulations recorded a gain in net of $47,429,940, or 100.87%; for July the gain in net was
$54,334,821, or 117.74%; for August the gain was
still very considerable, though it dropped. to $33,555,892, or 53.64%. For September it fell to $11,129,616, or 13.29%, while for October there was no
gain at all but a loss of $7,336,988, or roughly 71/2%.
In October a slight loss was shown even in the gross
revenues. This indifferent situation continued during the two closing months of the year, there being
increases in both November and December, but of
only slight extent relatively. The downward plunge
in agricultural prices the latter part of the year,
following the collapse in July, acted to emphasize
the industrial setback. On Dec. 21, December wheat
sold down to 777
/8c.
/
8c., though it closed Dec.30 at 827
In the following we furnish comparisons of the
monthly totals for each of the different months of
the year:
Gross Earnings.

Length of Road.

Month.
1933.
January
February
March
April
May
June
July
August
September
October
November
December

228.889,421
213,851.168
219,857.606
227.300,543
257.963,036
281.353.909
297.185.484
300,520.299
295,506,009
297.690.747
260.503,983
248.057,612

1932.
274,890,197
266,231,186
288,880,547
267.480,682
254.378.672
245.869.626
237.493,700
251.782,311
272,059.765
298,084,387
253,225,641
245,760,336

Inc. 1+) or
Dec.(—).

1933.

1932.

—46,000.776
—52,380,018
—69.022,941
—40,180,139
+3.584.364
+35,484.283
+59,691,784
+48.737.988
+23,446,244
—393,640
+7.278,342
+2,297.276

Miles.
241,881
241,189
240,911
241.680
241,484
241,455
241,348
241,166
240,992
240.858
242,708
240.338

Miles.
241,991
241,467
241,489
242,160
242,143
242,333
241,906
242,358
239.904
242.177
244.143
240.950

Financial Chronicle

Volume 138

1287

1930 it was 31,399,105 tons. The mining of coal
lagged behind nearly the whole year and as coal is
Per Cent.
Amount.
1932.
1933.
an essential in so many lines of manufacture, this is
$
$
$
—0.79
—361,700
45.964.987
45,603.287
January
evidence that manufacturing activity did not extend
—26.21
—14,727,011
56,187,604
41.460,593
February
—36.94
—25,256,013
68.356.042
43,100.029
March
to all branches of manufacture and was far from
—6.55
—3,676,793
56,261,840
52,585,047
April
+57.85
+27,428.140
74,844.410
47,416,270
May
normal proportion; the statistics show that 327,+100.87
+47,429,940
47,018,729
94,448,669
June
+117.74
+54,334,821
46,148,017
100,482,838
July
tons of bituminous coal were produced in
•940,000
+53.64
+33,555,892
62,553,029
96.108,921
August
+11,129,616
83,092,822
September
+13.33
94,222,438
1933 as against 309,710,000 tons in 1932. In 1931
\-7.46
—7,336,988
98,337,561
October
91,000,573
+4.54
+2,904,522
63,962,092
November
66,866,614
on the other hand the bituminous output was 382,U+2.19
+1,268,259
57,861,144
December
59,129,403
089,000 tons, in 1930 it was 467,526,000 tons and in
With reference to the reductions in expenses dis- 1929 no less than 534,988,593 tons, showing that the
closed by our tabulations,a question which naturally product of the last mentioned year exceeded that of
arises is whether the reduction may be regarded as 1933 by over 200,000,000 tons. The output of Pennsylthe result of real saving and economy, or whether vania anthracite in the calendar year 1933 was 49,it must be considered as in the nature of skimping 399,000 net tons, which was only slightly different
made necessary for the time being by the stress from the 1932 production at 49,855,000 tons. In
under which the roads had to be operated. The contrast the mining 'of Pennsylvania anthracite in
Inter-State Commerce Commission has recently 1931 aggregated 59,646,000 tons; in 1930 69,385,000
made public preliminary detaili of the expenses for tons and in 1929 73,828,000 tons. In other words, in
the calendar year and as these very closely approach these earlier years everything was on a very much
our own totals of the expenses, we may use these to larger scale. The same remark applies in the case
throw light upon the point in question. The decrease of the automobile industry. The year 1933 is supin expenses as compared with the twelve months of posed to have been a very good one in the automobile the preceding calendar year, we have already seen trade and certainly a great many more automobiles
was $154,363,745. The Inter-State Commerce Com- were turned out in that year than in the previous
mission's figures show a decrease of $154,225,045. year, the comparison being between 1,959,201 motor
Have the maintenance outlays been unduly cur- vehicles turned out in 1933 and 1,370,678 in 1932,
tailed? Let the figures supply the answer. For but in 1931 the production of motor vehicles was 2,maintenance of equipment $598,704,469 was ex- 389,738; in 1930 it was 3,354,870 and in 1929 no less
pended in 1933 as against $618,944,243 in 1932, and than 5,358,420.
for maintenance of way and structures $322,335,022,
No sign of revival was observable in the building
as against $351,220,552. The biggest reduction ap- industry, though there were indications of somewhat
pears in the transportation outlays, where there is greater activity in the three closing months of the
the greatest chance for the practice of real economy year. According to the tabulations compiled by the
and efficiency. These transportation outlays for the F.W.Dodge Corporation, the construction contracts
calendar year 1933 aggregated $1,078,005,535, which awarded in the 37 States East of the Rocky Mouncompares with $1,157,809,345 spent in the same .de- tains in the twelve months of 1933 represented a
partment in 1932. Then also the traffic expenses money outlay of only $1,255,708,400, as against $1,were cut to $85,824,207 against $96,230,852, while 351,158,700 in the twelve months of 1932; $3,092,the general expenses were reduced to $143,852,644 849,500 in the year 1931; $4,523,114,600 in 1930; $5,from $155,579,408 and the miscellaneous expenses 750,790,540 in 1929 and $6,628,286,100 in 1928. Howwere reduced to $23,546,136 from $27,684,034 in 1932. ever, in October, November and December of 1933
Apparently, therefore, the reductions have been the contracts awarded in each month ran substanalong uniform lines among the different departments tially higher than in the corresponding months of
and to no great extent seem to have been at the cost 1932, the contemplated expenditures for October beof impairment of the physical condition of the prop- ing $145,367,200 against $107,273,900 in the same
month of 1932; for November $162,330,600 against
erties.
The variations in the gross revenues of the roads $105,302,300, and for December $207,209,500 against
as outlined further above are really in close harmony $81,219,300. Lumber production in 1933 ran well
with the variations in general trade itself, at least above that of 1932, but much below any of the earlier
in the case of many of the basic industries. As a rule years. For the 52 weeks of 1933 it reached 7,450,it may be said that the volume of trade in 1933 ran 227,000 feet for 604 mills against 5,772,613,000 feet
above that for 1932, but fell far below the best of in the 52 weeks of 1932 for the same mills; in 1931 it
earlier years. One looks naturally first of all at the was 9,275,809,000 feet for 599 mills; in 1930 and 1929
statistics regarding the production of iron and steel it was respectively 14,259,762,000 feet and 18,656,and there the increase over 1932 was very marked, 465,000 feet in the case of 679 mills.
The grain traffic over Western roads, while very
while at the same time there was not even a remote
approach in activity and output to the best of earlier much larger than in 1932—the smallest recorded in
years. The production of steel ingots in the calendar several years—was nevertheless on a greatly diminyear 1933 reached 22,878,571 net tons which is cer- ished scale as compared with the movement in the
tainly a striking increase as compared with the pro- years 1931, 1930 and 1929, in each of which in turn
duction of 13,322,833 tons in the calendar year 1932, a heavy shrinkage occurred. With the single excepbut if we extend the comparison further back it is tion of wheat, the movement of which ran considerfound that in 1931 the production of steel in the ably smaller than in the previous year-237,013,000
United States was 25,192,715 tons; in 1930 it was bushels as against 277,391,000 bushels—all the dif39,286,287 tons and in 1929 no less than 54,312,279 ferent cereals in greater or lesser degree contributed
tons. The iron statistics show similar comparisons. to the increase, the gain in the case of corn having
In 1933 the make of iron was 13,212,785 gross tons been particularly pronounced. The receipts of the
as compared with only 8,686,443 tons in 1932, but in latter at the Western primary markets for the 52
1931 the output of iron was 18,275,165 tons and in weeks of 1933 aggregated 248,319,000 bushels, as
Net Earnings.

Month.




Inc.(±) or Dec.(—).

Financial Chronicle

1288

18,114,000 22,518,000 23,132,000 5,449,00A
6,306,000 12,499,000 14,323,000 4,435,00-

against 61,390 cars in 1932; 72,825 cars in 1931; 87,537 cars in 1930; 97,673 cars in 1929 and 102,152 cars
in 1928, while at Omaha the receipts were only 41,849 cars against 51,140 cars in 1932; 74,405 cars in
1931; 81,351 cars in 1930; 81,253 cars in 1929, and
86,494 cars in 1928.
As to the cotton traffic in the South, this was on
an 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 aggregated 651,667 bales in 1933 as compared with
472,476 bales in 1932; 758,838 bales in 1931; 721,301
bales in 1930;913,635 bales in 1929 and 914,507 bales
in 1928. Receipts of cotton at the Southern outports
during 1933 reached 8,498,089 bales as against .9,342,444 bales in 1932; but comparing 7,806,305 bales
in 1931; 8,340,401 bales in 1930; 8,662,715 bales in
1929 and 9,021,645 bales in 1928, as is shown in the
table we now present:

10,282,000 12,523,000 5,837,000 4,855.000
360,000 1,907.000 3,098,000 1,798,000

RECEIPTS OF COTTON AT SOUTHERN PORTS FROM JAN. 1 TO DEC. 31
1928 TO 1933, INCLUSIVE.

compared with only 150,616,000 bushels in the corresponding 52 weeks of 1932; the receipts of oats
99,334,000 bushels, as compared with 82,115,000; of
barley, 55,459,000 bushels, as compared with 34,013,000, and of rye 18,449,000, compared with 8,155,000 bushels. Total receipts at the Western
primary markets for the five cereals, wheat, corn,
oats, barley and rye, combined, reached 658,574,000
bushels in 1933, as against only 552,290,000 bushels
in 1932, but comparing with 752,259,000 bushels in
1931; 883,587,000 bushels in 1930; 954,540,000
bushels in 1929, and no less than 1,121,268,000
bushels in 1928. In the following table we give the
details of the Western grain movement, in our usual
form, for the 52 weeks of 1933 and 1932:
Flour.
Wheat
Jan. 1 to
(Bush.)
Dec. 30.
(8518.)
Chicago1933____ 8,751,000 12,855,000
1932____ 8,785,000 14,242,000
Minneapolis1933__
63.759,000
1932__
10,000 57,778,000
Duluth1933__
45,220,000
1932._
40,597,000
Milwaukee1933____
662,000 2,397,000
1932____
545,000 2,983,000
Toledo1933____
20,000 10,955,000
1932..13,139,000
Detroit1933_
1,128,000
1932
1,641,000
Indianapolis and Omaha1933.......
11,000 19,683,000
1932____
38,000 22,135,000
St. Louis6,447,000 18,092,000
1932...... 6,955,000 22,679,000
Peoria1933__ 2,306,000 1,821,000
1932___ 2,332,000
1,888,000
Kansas City1933____
639,000 43,018,000
1932____
543,000 72,474,000
St. Joseph1933_
4,310,000
4,000 5,303,000
1932____
Wichita12,863,000
1933---1932....
20,711,000
Sioux City1933__..912,000
1932____
239,000 2,021,000

Feb. 24 1934

Corn.
(Bush.)

Oats.
(Bush.)

Barley.
(Bush.)

Rye.
(Bush.)

88,372,000 20,646,000 8,688,000 4,846,000
70,974,000 28,170,000 4,202,000 1,025,000

17,837,000 6,614.000 12,767,000
7,614,000 2.256,000 7,360,000

559,000
144,000

Full Year.
Ports.
1933.

2,127,000 4,097,000
2,575,000 8,175,000

40,000
80,000

44,000
220,000

702,000
730,000

886,000
749,000

306,000
316,000

41,668,000 14,904,000
21,429,000 15,765,000

4,000
49,000

32,000
62,000

20,279,000 7,570,000 1,135,000
14,911,000 5,164,000 1,383,000

193.000
94,000

450,000
185,000

18,266,000 4,067,000 2,618,000 1,962,000
13,309,000 3,199,000 2,562,000
49,000
19,036,000 2,678,000
8,058,000 1,639,000

Galveston
Houston..88
Corpus Christi
Beaumont
New Orleans
Mobile
Pensacola
Savannah
Brunswick
Newport News
Charleston
Lake Charles
Wilmington
Port Arthur
Norfolk
Jacksonville
Total

1959.

1933.

1939.

1929.

1928.

2,145,047 2,244,719 1,751,168 1,422,990 2,046,403 2,887,759
3,020.216 2,990.525 2,959,521 2,951,411 3,028,784 2,924,486
447,789 327,801 421,960 595,775 421,225 260,459
36,652
18,847
10,907
19,225
14,971
1,766,935 2,403,914 1,316,026 1,453,403 1,761,162 1,565,743
279,791 473,688 466,280 494,257 405,636 269,313
85,371
55,208
138,284 140,916
7,408
1,978
215,774 214,423 400,597 684,232 497,091 471,066
11,588
48,614
31,624
48.900
37
201,680 174,133 144,106 345,372 208,741 226,719
63,715
38,404
7,605
7,818
136,661 161,637
54,408
59,374
60,888 100,540 157,751
35.398
9,217
91,269 170,111 154,895 248,553
52,302
50,952
21,449
425
13,746
17.051
8.498,089 9.342,444 7,806,305 8.340,401 8,662.715 9,021,645

2,000

Loading of revenue freight on the railroads of the
United States furnishes a sort of composite picture
of the general traffic and revenues of the roads.
113,000
909,000
2.000
1,000
382,000
36,000
27,000
Here again we find that the aggregate number of
2,249,000
669,000
350,000
202,000
cars
loaded in 1933 was only slightly greater than
1,976.000
641,000
180,000
12,000
in
1932,
when it was inordinately low and far below
Total all1933_ 18,836,000 237,013,000 248,319,000 99,334,000 55,459,000 18,449,000
years immediately preceding. In brief,
that
of
the
1932____ 19.451.000 277.391.000 150.616.000 82,115.000 34.013.000 8,155,000
an aggregate of 28,960,910 cars were loaded on the
On the other hand, the grain movement at the searailroads of the United States in 1933 as against
board during 1933 was not only on a greatly reduced
28,179,952 cars in 1932, but comparing with 37,151,scale as compared with the preceding year, but
249 cars in 1931, 45,877,974 cars in 1930 and 52,reached the lowest level in all other recent years,
827,925 cars in 1929. The details regarding the septhus showing most graphically the great falling off arate items going to make up
the grand totals are
which has occurred in the export demand for grain. shown in the
table which follows:
The seaboard grain receipts include the movement to
LOADING OF REVENUE FREIGHT ON THE RAILROADS OF THE
Montreal as well as to United States ports. For
UNITED STATES FOR 52 WEEKS,
(Number of cars.)
the 52 weeks of 1933 the receipts at the seaboard
1933.
1932.
1931.
1929.
1930.
were only 126,900,000 bushels, as against 208,016,000 Grain& grain prods.. 1,654,405
1,653,381
2,024,394 2,265,400
2,396,195
Livestock
886.141
1,419,191
949,287
1,162,060
1,285,153
bushels in 1932; 228,049,000 bushels in 1931; 177,- Coal
5,615,935 5,338,938 6,493,200
7,927,035 9,095,271
Coke
295,544
634,427
223,766
324,743
487,841
253,000 bushels in 1930; 221,457,000 bushels in 1929, Forest products.__ 1,085,592 899,198
1,471,398
3,248,408
2,369,319
Ore
700,286
2,281,566
210,367
874,673
1,661,659
and no less than 420,420,000 bushels in 1928, as will Mdse. (less than car
load freight)
8,428,384 9,069,736 10,948,873 12,200,534 13,205,698
Miscellaneous
10,294,623 9,835,279 13,851,908 17,681,033 20,547,169
be seen by the subjoined table:
8,730,000 2,233,000
2,537,000 1,934,000

GRAIN AND FLOUR RECEIPTS AT SEABOARD PORTS FOR 52 WEEKS.
1931.
1930.
1929.
1932.
Receipts of1933.
Flour_ __barrels_ 14,988,000 16,291,000 22,969,000 25,316,000 24,578,000
Wheat
Corn
081,8
Barley
Rye

bu.hels_113,075,000 167,010,000 185,757,000 164.010,000 160,415,000
7.171,000 8.440,000 3,225,000 4,959,000 17,330,000
5,140.000 12,464,000 13,145,000 6,088,000 15,766.000
1,268,000 24,517.000
889,000 8,519,000 23,142,000
3,429,000
928.000
625,000 11,583,000 2,780,000

Total grain

126,900,000 208,016,000 228,049,000 177.253,000 221,457,000

The Western livestock movement, too, was considerably smaller than in 1932 and this moreover
followed a falling off in other recent years. The receipts at Chicago comprised only 145,439 carloads
as against 149,714 carloads in 1932; 196,443 carloads
in 1931; 204,828 carloads in 1930; 221,328 carloads
in 1929, and 233,166 carloads in 1928. At Kansas
City the receipts in 1933 were only 50,423 cars




Total

28,960,910 28,179,952 37,151,249 45,877,974 52,827,925

It should perhaps be added that the freight traffic
handled in 1933 by the railroads of this country
measured in net ton miles (the number of tons of
freight multiplied by the distance carried), totaled
275,082,712,000 net ton miles, according to complete
reports for the year'just received by the Bureau of
Railway Economics. This was an increase of 16,034,040,000 net ton miles or 6.2% above that for 1932,
but a reduction of 65,065,910,000 net ton miles or
19.1% under that for 1931. In the Eastern District,
there was an increase of 6.8% in the amount of
freight handled in 1933, compared with 1932, while
the Southern District shows an increase of 6.3% and
the Western District an increase of 5.2%.

Volume 138

In the case of the separate roads, the only point
of special importance to notice is that so many roads
were able to convert losses in gross into gains in
net. As one illustration, the New York Central (including the Pittsburgh & Lake Erie and the Indiana
Harbor Belt), reports a decrease of $7,767,078 in
gross, but an increase of $10,629,429 in net. In like
manner the Pennsylvania Railroad, while suffering
a decrease of $6,677,644 in gross, has added $8,565,612
to its net earnings. And these instances might be
multiplied many times by mentioning other roads
and taking in other sections of the country. In the
following we undertake to show all changes for the
separate roads and systems for amounts in excess of
$1,000,000, whether increase or decreases and in both
gross and net. It will be observed that the only decreases in the net for that amount come from Southwestern roads like the Atchison, the Rock Island,
the St. Louis-San Francisco and the MissouriKansas-Texas, besides the New Haven Road and the
Long Island.
PRINCIPAL CHANGES IN GROSS EARNINGS FOR 12 MONTHS
ENDED DEC. 31 1933.
Decrease.
Increase.
Duluth Missabe & North $7,325,266 New York Central
a$10 295,038
Chesapeake & Ohio
7.243.662 N Y N H & Hartford__ 7,748.501
Norfolk & Western
6,677,644
6,487.280 Pennsylvania
Great Northern
6,374,645 Chicago R I & P (2 roads) 5,931,578
Baltimore & Ohio
4,151.494
5,909,429 Long Island
Southern Ry
3.210.384
3.161,561 Boston & Maine
Bessemer & Lake Erie... 2.994,473 Del Lack & Western.... 3,108,577
Elgin Joliet & Eastern... 2,221,519 Central RR of N J
2.956,140
International Great Nor_ 2,144,148 Reading Co
2,342,322
Penna-Reading S Lines- 2,121,826 Union Pacific (4 roads).- 2.109.191
Pittsburgh & Lake Erie
2,060,861 St Louis-San Fr (3 roads) 2,013,337
Wheeling & Lake Erie
2,027.585 Missouri Pacific
1,966,401
Union RR of Penna._ _ _ 1,741,184 Erie (3 roads)
1,821,387
Louisville & Nashville__ _ 1,736,934 Illinois Central
1.778 759
Cinc New On & Tex Pac 1,496,628 Wabash
1,578,617
N Y Chicago & St Louis 1,489,038 Mo-Ran-Texas Lines-- 1,543,152
Lake Superior & Ishpem 1,427,159 NO Tex & Mex (3 roads) 1.316,613
Grand Trunk Western
1.045,974 Los Angeles & Salt Lake.. 1,247.725
Nashv Chatt & St Louis 1.025.972 Texas & Pacific
1,109.431
Delaware & Hudson_
1,047,032
Total (19 roads)
$60,035,144 Chicago Burl & Quincy.- 1,046.654
Decrease.
Atch Top & SF(3 roads) $13,307,101
Total (36 roads)
$90.755 180
Southern Pacific(2 roads) 12,445.102
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 and the Indiana Harbor Belt, the result is a
decrease of $7,767,078.
PRINCIPAL CHANGES IN NET EARNINGS FOR 12 MONTHS
ENDED DEC. 31 1933.
Increase.
Increase.
Great Northern
$10.485,093 Elgin Joliet & Eastern__ $1,831,252
Southern Ry
10,321,192 Internal Great Northern 1,622,820
New York Central
a8,958,288 Chicago St P Minn & Om 1,529,192
Pennsylvania
8,565,612 Wabash
1,528,915
Chicago Mil St P & Pac- 8,075,665 Union RR of Penna..- 1,440.457
Baltimore & Ohio
7,194,665 Union Pacific(4 roads)__ 1.375.218
Duluth Missabe & Nor.. 6,391,734 Pittsburgh & Lake Erie_ 1,302,448
Norfolk & Western
5.215.506 Yazoo & Miss Valley... 1,235,601
Chesapeake & Ohio
4,882,693 Lake Superior & Ishpem 1,215.811
Chicago & North West
3,792,431 C
___ 1,073,810
Atlantic Coast Line
3,783,626 Terminal RR Assn of St L 1.051,658
Reading Co
3,313,319 Grand Trunk Western__ 1,048.817
Chicago Burl & Quincy
3,109.351
Louisville &
3,102.855
Total (40 roads)
$125,193,691
Northern Pacific
2,934,188
Decrease.
N Y Chicago & St Louis 2,860,807Atch Top & 8 F (3 roads) $5,192,097
Bessemer & Lake Erie_ _ 2,810,030
3,990,321
Erie (3 roads)
2.470.470 Chicago R I & Pac(2 rds) 2,025.551
Seaboard Air Line
2,386,0041Missouri-Ransas-Texas_. 1 ,313,451
Chic N O'& Tex Pac
2,297,568 St Louis-San Fr (3 roads) 1,155,767
Minneap SIP & S S M
2,133,869 Long Island
1,040.097
Illinois Central
1.982,228
St Louis Southwestern... 1,870,498
Total (11 roads)
$14.717.284
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 the Pittsburgh & Lake Erie and the Indiana Harbor Belt, the result
is an increase of $10.829.429.

When the roads are arranged in groups or geographical divisions, according to their location, the
part played by reduced expenses in improving net
results appears when it is found that while only the
Southern District and the Northwestern region of
the Western District and the Central Eastern region
of the Eastern District are able to show better gross
revenues than in 1932, all the different regions in
each of the districts with the single exception of the
New England region and the Central Western region are able to show improved net results. Our
summary by groups is as below. As previously explained, we group the roads to conform entirely with
the classification of the Inter-State Commerce Commission. The boundaries of the different groups and
regions are indicated in the footnote to the table.




1289

Financial Chronicle
District and Region.
Jan. 1 to Dec. 311933.
Eastern District$
New England region (10 roads).__ _ 140,109,285
Great Lakes region (30 roads)
622,567,399
Central Eastern region (25 roads)._ 650,844,096
Total (65 roads)
Southern DistrictSouthern region (29 roads)
Pocahontas region (4 roads)

1.413,520,780 1,437,998,252 -24,477,472 1.70

Total (33 roads)
Western DistriaNorthwestern region (17 roads)
Central Western region (22 roads)._
Southwestern region (28 roads)..
Total (67 roads)

Gross Earnings
1932.
Inc.(+)Or Dec.(-)
$
$
%
152,775,852 -12.666.567 8.29
636,736,457 -14,169,058 2.23
648,485,943 +2,358.153 0.38

388,949,801
194,551,462

378,418,688 +10,531,113 2.78
180,626.999 +13.924,463 7.71

583,501,263

559,045,687 +24,455,576 4.37

365,818,759
509,124,882
256,896.857

349,227,575 +16,591,184 4.75
543,118,842 -33.993,960 6.26
267,364,749 -10,467,892 3.92

1 131.840,498 1,159,711,166 -27,870,668 2.40

Total all districts (165 roads)
3,128,862,541 3,156,755,105 -27,892,564 0.88
District and Region.
Net Earnings
Jan. 1 to Dec. 31.-Mileage---1932.
Inc.(+) or Dec.(-)
1933.
Eastern District- 1933. 1932.
g
6
%
g
New England region_ 7,225 7,282 37.740,415 41,322,570 -3,582,155 8.67
Great Lakes region__ 27,172 27,358 155,177,386 134,408,226 +20,769,160 15.45
Central Eastern reg'n 25,459 25,467 196,646,286 168,455,438 +28,190,848 16.74
Total
50,856 60,107 389,564,087 344,186,234 +45,377,853 13.18
Southern DistrictSouthern region
39,524 39,834 97,732,938 66,054,840 +31.678.098 47.95
Pocahontas region.. 6,091 6,131 86,035,029 75,215,396 +10.819,633 14.38
Total
Western DistrictNorthwestern region_
Central West. region
Southwestern region_
Total

45,615 45,965 183,767,967 141,270,236 +42,497,731 30.08
48,734 48,817 90,559,400 50,495,572 +40.063.828 79.34
53,827 53,919 135,675,610 137,470,509 -1,794,899 1.31
33,079 33,245 60,072,764 59,746,106
+326,658 0.55

135,640 135,981 286,307.774 247,712,187 +38,595.587 15.58

Total all districts_ _ _241.111 242,053 859,639,828 733,168,657 +126471,171 17.25
NOTE.-We have changed our grouping of the roads to conform to the classification of the Inter-State Commerce Commission, and the following indicates the
confines of the different groups and regions.
EASTERN DISTRICT.
New England Region.-This region comprises the New England States.
Great Lakes Region.-This 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 -This region comprises the section south of the Great
Lakes Region,east of a line from Chicago through Peoria to St. Louts and the Mississippi River to the mouth of the Ohio River, 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.
Pocahontas Region.-Thls region comprises the section north of the southern
boundary of Virginia, east of Kentucky and the Ohlo River north to Parkersburg.
W. Va., and south of a line from Parkersburg to the southwestern corner of Maryland and thence by the Potomac River to its mouth.
Southern Region.-This 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.
WESTERN DISTRICT.
Northwestern Region.-This 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.-This 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 Regina -This region comprises the section lying between the MissLsslop( River south of St. Louis and a line nom St. Louts to Kansas City and thence
to El Paso and by the Rio Grande to the Gulf of Mexico.

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.
;EARNINGS OF UNITED STATES RAILROADS FROM JAN. 1 TO DEC. 31.
Eastern District.
--Gross
Net
1932.
New England
1932.
1933.
Inc. or Dec.
1933.
Regiong
5.911.877 2,279,069 1,985,289 +293,780
Bangor & Aroostook 5,805.511
Boston & Maine_ _ _ _ 41,877,370 45,087,754 11,487,494 12,144,086 -656,592
Can Nat System1,166,816 -228,097 -243,448
+15.351
C N Lines in N E_ 1,039,090
635,424
527,563 +107,851
Central Vermont_ 5,008.079 5.234,570
Grand Trunk West-See Great Lakes region
Del Winn & Pac-See Northwestern region
Can Pac System-15,805 +219,911
1,681,647
204,106
C P Lines in Me__ 1,583,487
C P Lines in Vt__
897,591
1,036.462 -134.889 -130,564
-4,325
Dul So Sh & Atl-See Northwestern region
Minn 8 P ,S; S S M-See Northwestern region
Spokane Internal-See Northwestern region
Maine Central
10,556,435 11,254.771
2,981,807 2.580,993 +400,814
New Haven SystemNYNH& Hartf 67,224.751 74,973,252 17,997.724 21,988,045 -3,990,321
N Y Ont & West-See Great Lakes region
N Y Connectbig- 2.730,165 2,558,597 2,157,225
1,979,805 +177,420
Rutland
360.552
3,386,806 3,870,106
506,606 -146,054
Total (10 roads).-140,109,285 152,775,852 37,740.415 41.322,570 -3,582.155
Gros
Nd
Great Lakes
1933.
1932.
1933.
1932.
Inc. or Dec.
Region3
3
$
$
$
Can Nat SystemC N Lines in N E-See New England region
Central Vermont-See New England region
Del Winn & Pac Sec Northwestern region
Cr Trunk West__ 14,958,766 13.912,792
1,234,043
185,226 +1,048,817
Cambria & Indiana_ 1,186,843
1,126,186
384,775
346,934
+37,841
Delaware & Hudson 22,178,122 23,225,154
1,896,410
970,045 +926.365
Del Lack & Western 43,339,279 46,447,856 8,562,152 9,392,277 -830,125
Detroit & Mackinac
601.960
759,895
93,035
153.107
-60,072
Detroit Terminal_ _ _
650,246
601,579
115,196
83,255
+31.941
Det & Tol Sh Line__ 2.562,417
2,303,580
1,298,762
1,061.381 +237.381
Erie SystemChicago & Erie-- 8,929,614 8,904,312 3,892,158 3,087,772 +804.386
Erie
63,156,702 64,841,762 16,581,626 14,810,489 +1,771,137
New Jersey & NY
939,121
1,103,750
-71,066
33,987 -105,053
N Y Sus('& West_ 3.160,853 3,522,186
797,992
1,016.441 -218,449
Lake Terminal
607,198
352,958
226,137
79.072 +147,065
Lehigh & Bud River 1,443.351
1,579,504
460.608
453.892
+6.716
Lehigh & New Eng_ 3,000.725 3,274,739
700,618
794,202
-93,584
Lehigh Valley
38,177,450 38,739,138 7,945,383 7,052.957 +892426
Monongahela
3.584,699 3,634,116 2,251,972 2,152,569
+99,403
1,662.916
Montour
1,508,978
562,558
518,264
+44,294
New Haven SystemN y N H & Hartford-See New England region
NY Ont & West_ 9,644,523 10,571.876
2,665,844 3.048,689 -383.845

1290

Financial Chronicle

Net
Gross
Inc. or Dec.
1932.
1933.
'
1933.
1932.
N Y Central Lines-$
$
$
$
$
Ind Harbor Belt_ 7,765.719 7,298,620 3,143,519 2,774,826 +368,693
NY Central
283,341,102 293,636.140 75,417,808 66,459,520 +8,958,288
Pittsb & Lake Erie 14,582,837 12,521,976 2,610,128
1,307,680 +1.302,448
NY Chic & St Louis 30.647,506 29.158,468 2,912,548
7,051,741 +2,860,807
-36,560
-58,768
Newburgh & So Sh_
400,891
601,756
-95,328
Pere Marquette
21,947,295 21,461,277 4,054,575 3,271,381 +783.194
-43,656
Pitts dr Shawmut.__
109,995
153,651
670,421
814,463
Pitts& W Virginia_ - 2,530,253 2,239,821
816,984
499.872 +317,112
Pitts Shawm & No..
31,939 +137.092
169,031
989.451
935.591
+78,169
127,897
Toledo Terminal.._
206,066
714,227
755.762
Wabash SystemAnn Arbor
446,196 +158,014
3,116,589
604,210
2.985.896
Wabash
36,207,016 37,785,633 8,629,647 7,100,732 +1.528,915
Total(30 roads)--622,567,399 636,736,457 155,177,386 134,408,226 +20769,160
Net
-Gross
1932.
Inc. or Dec.
Central Eastern
1933.
1933.
1932.
Region$
+89,770
Akron Canton & Y. 1,594,629 1,564.496
574,045
484,275
310.335 +127,158
Alton & Southern
1,036,551
903,912
437,493
Bait & Ohio SystemAlton-See Central Western region
Balto dr Ohio-- -.131,792,253 125,882,824 41,422.553 34,227,888 +7,194,665
+33,250
B Sr 0-Chic Term 3,079,088 3,223,214
454,125
420,875
400,913
-22,646
Staten Isl Rap Tr 1,711,804
378.267
1,804,889
Belt By of Chicago_ 4,027.325 3,927,472
1.178.723 +350.301
1.529,024
Bessemer & L Erie
1,934,003 -876,027 +2,810,030
6.742,869 3,748,396
+71,099
Bklyn E D Terminal
405,822
334,723
923,175
851,199
Chic dr East Illinois_ 12,218,449 12,189,973 2,617,391
1,543.581 +1,073,810
388,525 +708.153
Chic dr LI Midland_ 3,026,349 2,058,561
1,096,678
Chic Ind & Loulsv
+24.736
7,228,716 7,916,338
1,483,659 1,458,923
Conemaugh & BI Lk
-69,609 +231,053
689,710
311,223
161,444
Det Tol & Ironton
4,042,660 4,130,256
1,610,447 1,089,768 +520,679
Elgin Joliet & East_ 9,985.608
590,620 +1,831,252
7,764,089 2,421,872
Illinois Terminal...4,749,837 4,551,048
1,547,554
1,184,745 +362,809
Missouri Pac System-See Southwestern region
+24,372
Missouri Illinois
159,375
183,747
850,168
875,561
Monongahela Conn_
467,293
43,818 -159,439 +203,257
803.347
Pennsylvania SystemLong Island
24,063.582 28,220,076 8,682,594 9,722,691 -1,040,097
Pennsylvania_ _ _324,715,814 331,393,458 97.947,467 89.381,855 +8.565,612
Reading System+59,207
-31,350
27,857
Penn Read S Lines 4,002,778
1,970,952
Central of N J
27,401,329 30,357.469 7,752,738 8,174,777 --422,039
Reading Co
49.464,052 51,806,374 16,315,524 13.002,205 +3.313,319
Union RR of Pa_ .._ _ 3.690,135
349,236 -1,091,221 +1,440,457
1,948,951
-60,608
4,560.319
Western Maryland_ 12,345.048 12.081,684 4,499,711
2,067,968 +701,249
Wheeling dr L Erie
10,563,820 8,536,235 2,769,217
Total(25 roads)_ _650.844,096 648,485,943 196,646,286 168,455,438 +28190,848
Total Eastern District(65 roads).1413520780 1437998,252 389,564,087 344,186,234 +45377.853
Southern District.
Net
--Gross
1932.
Inc. or Dec.
1933.
Southern Region1933.
1932.
$
Atl Coast Line System- $
$
-79,069 +100,825
21,756
1,263.274
Atl & West Point_ 1,280,053
26,502 -585,151 +611,653
Atl Birm & Coast_ 2.604,544 2,413,794
AU Coast Line__ _ 37,908.943 37.268,564 8,781,313 4,997.687 +3,783.626
328,375 +299,008
1,633.908
627,383
Charles & W Caro 1.888,221
1,388,993 +772,751
Clinchfield
4,842,426 4,059,463 2,161,744
165,705 +319,101
484,806
3.010,050 2,862,177
Georgia
Louisv & Nashv
65,656.958 63,920,024 15.408,387 12,305,532 +3,102,855
1,203,221 +384,636
1,587.857
Nash Chatt & St L 12,381,088 11,355,116
-27,000 -129,048 +102,048
1,233,228
West Ry of Ala._ 1,246,673
-72,356 +185,406
113,050
832,848
748.700
Columbus dr Greenv
1,154,608
1.019.743 +134,865
Florida East Coast_ 6,693,545 6.720.794
818,829
48,621 -143,650 +192.271
Georgia & Florida
975,719
618.622 +711,032
Gulf Mobile & Nor_ 4,192,583 3.961,959 1,329,654
Illinois Central System1.775,493 1,125,132 +650.361
Central of Georgia 12,132,343 11,547,648
42,302 +107,902
1,034,915
150,204
Gulf & Ship Island 1,070.054
Illinois Central.- - 75,966.799 77.745,558 21,940.948 19,958.720 +1,982.228
Yazoo & Miss Vail 11,991.684 11,559,720 4,078,063 2,842,462 +1,235.601
52,116
19,464
+32,652
609,782
604.360
Mississippi Central..
803.155
369,789 +433,366
4,385.592 4,188.799
Norfolk Southern
Seaboard Air Line 31,549,557 30,740,335 5,739,485 3,353,481 +2,386,004
Southern By System1,110,202
307,237 +802,965
Ala Gt Southern_ 4,497,665 4,090,649
NOCm
& Tex P. 11,622,730 10,126,102 4,572,587 2,275,019 +2.297,568
192,199
302,379 -110.180
1.876,618
1,634,446
Ga South & Fla
795.138 +538,182
Mobile dr Ohio_ _ _ 8,161,996 7,851,329 1.333,320
369,603
73,266 +296,337
1.960,873
NO & Northeast_ 1,949,879
758.004
892,125 -134,121
1,480,150
New On Term_ _ _ 1,266,970
+64.547
204.704
140,157
486,613
North Alabama
530,818
76,148.103 72,986.542 22.442,694 12.121.502 +10321,192
Southern By
418.063
+73,417
1,873,225
491.480
1,923,154
Tennessee Central
Total (29 roads)_ _388,949.801 378,418,688 97,732,938 66,054,840 +31678,098
Net
-Gros
1932.
Inc. or Dec.
1933.
1932.
Pocahontas
1933.
02-$
RS0
Chesapeake dr 01110_105,969,522 98.725,860 47,643,437 42,760,744 +4,882.693
Norfolk & Western- 69,262,891 62.775,611 30,245,584 25,030,078 +5.215,506
5,885,276 6.306,559 1.232,740 1,374,620 -141,880
Richm Fred & Po
13,433.773 12.818.969 6,913.268 6,049.954 +863,314
Virginian
Total(4 roads)._ _194,551.462 180,626.999 86,035,029 75,215,396 +10819,633
Total Southern District (33 roads)-583,498,565 559,045,687 183,765,269 141,270,236 +42495.033
Western District.
Net
--Gross
Northwestern
1932.
Inc. or Dec.
1932.
1933.
1933.
RegionCan Nat System$
C N Lines in N E-See New England region
Central Vermont-See New England region
812,579
841,099
-63,184 -221.243 +158,059
Dul Winn & Pac_
Grand Trunk Western-See Great Lakes region
Canadian Pacific SystemC P Lines in Me-See New England region
C P Lines in Vt-See New England region
327,670 -202,169 +529,839
1,634,036
Dul So Sh & Ati__ 1,963,106
M St P & 55 M__ 22,293.596 22,079.116 4,299,726 2,165,857 +2,133,869
-51,567
+27.603
526,798
-23.964
443,030
Spokane Internat
Chic & North West_ 73,394,501 72,491,521 15,679,532 11,887,101 +3,792,431
Chic SIP M & 0_ 14,527,600 14,831,762 3,321,089 1.791.897 +1,529.192
Chic Great Western 14,575.180 15,159,400 4,253,067 3,544,150 +708,917
Chic Mil St P & Pao 85,495,220 84,900,833 20,898,379 12,822,714 +8,075,661,
2.242,740 +305,339
Chic River & Id... 4.532,517 4,314,996 2.548,079
Dui Missabe & Nor_ 9.700,$00 2,374,934 3.982.350 -2,409,384 +6.391,734
Great Northern_ _ _ _ 61,923,891 55,549,246 20,378,667 9,893,574 +10485,093
198.822
-27,078
171.744
Grean Bay & West_ 1,094.300 1,166,241
444,625 1,047,671 -168,140 +1,215,611
Lake Sup & Ishpem_ 1,871.784
410,662 +515,451
926,113
Minneapolis & St L_ 7,673,398 7,854,700
5,650,997 +2,934,188
Northern Pacific.- - 47,578,677 47,084,176 8,585,185
1,312,976 +471,722
Spokane Port!& S__ 4,608,094 4.867,498
1,784.698
Union Pacific SystemLos Aug & Salt Lake-See Central Western region
Oregion Short Line-See Central Western region
1,626.585 +815,993
Ore-Wah RR & N 13.331,086 13,106.594 2,442,578
St Joseph & Gr Isl-See Central Western region
Union Pacific-See Central Western region
Total (17 roads)--365,818.759 349.227,575 90,559.400 50,495,572 +40063,828




--GTOSS
Central 1Vestern
1933.
1933.
1932.
RegionAtchison SystemAtch Top eiL El Fe_ 98,462,856 109,893,450 21.316,830
Gulf Colo & S Fe-See Southwestern region
Panhandle & S Fe 8,621,500 8,564,940 2,762,221
Baltimore & Ohio SystemAlton
13,328,174 14,090,370 4,112,505
Bait & Ohio-See Central Eastern region
Bait & Ohio-Chic Term-See Central Eastern region
Staten 181 Rap Trail-See Central Eastern region
Burlington RouteCh Burl & Quincy 78,496,975 79.543,629 24,135,376
Colo & Southern_ 5,485,205 5.451,108
1,162,105
Ft Worth & D C. 5,633,368 6.003.759 2,274,161
Den & Rio Or West_ 17,112,794 17,560,621
5,225,370
Denver dr Salt Lake_ 1,667,331
768.172
1,915,469
Nevada Northern
-7,609
270,868
334,358
Peoria & Pekin Un_
193,043
917,673
863,640
Rock Island SystemChic RI & Gulf
860.314
3,416,409 3,996,248
Chich R I & Pao_ 61,432,040 66,783,779 11,552.739
San Diego dr Ariz E.
360,179
-50,893
424,549
Southern Pacific System148,889
Northwestern Pao 2,853,362 3.176,592
Southern Pacific_ 97.059,087 107,162,148 23,287,185
Texas & New Orl-See Southwestern region
430.249
Toledo Peoria & W. 1,690,429 1,497,341
Union Pacific SystemLos Aug dr Salt L. 13,935,335 15,183,060 4,509.534
Oregon Short Line 20.466.813 20.381,597 7,079.283
Ore-Wash RR & Nav-See Northwestern region
1,128,299
St Joseph & Or Isl 2,655.409 2,290,387
63,357,225 66,141,146 22,446,396
Union Pacific_
1,156,308
291,435
Utah
979,168
Western Pacific__ -- 10,868.312 10,768,713 2,050,006

Feb. 24 1934
Net
1932.

Inc. or Dec.

25,965,321 -4,648,491
1,900,918

+861,303

3,502,410

+610,095

21,026,025 +3,109,351
802,666 +359,439
-56,295
2,332,456
4,850,114 +375,256
935,770 -167,598
-15,931
8,322
+64,724
128,319
1,279,200 -418,886
13,159,404 -1,606,665
-428.603 +377,710
+29,500
119,389
24,516,692 -1,229,507
238,449

+191,800

4,867,991
6,703.866

-358,457
+375,417

760,049
22,630,838
434,122
1,736,791

+368,250
-184,442
-142,687
+313,215

Total (22 roads). _509,124.882 543,118,842 135.675.610 137,470,509 -1,794,899
TOS
Net
Inc. or Dec.
1932.
1933.
1932.
Southwestern
1933.
&PionAtchison SystemAtch Top dr S Fe-See Central Western region
Gulf Col & S Fe
12,742,081 14,675,148
1,944,068 3,348,977 -1,404,909
Panhandle & S Fe-See Central Western region
+33,931
Burl dr Rock Island_
959,678
1.023.736
148,013
114,082
Ft Smith & Western
670,557
685.187
+54,578
75,558
20,980
Frisco LinesFt W & Rio Or...
424,044
472,303 -268,726 -271,254
+2,528
St L-San Fran
38,731,160 40,712,215 7,025,742 8,250,694 -1,224,952
1,046,184
St L-S F of Texas_ 1,062,161
13,356
-53,301
+66.657
1.618.564
Galveston Wharf... 1,136,308
372,993
605,457 -232.464
+46,721
Kansas City South_ 8,346.496 8,750,139 2,182,831 2,136,110
Texarkana & Ft 8 1.016.267
1,125.298
339,234
327,511
+11.723
Kansas Okla & Gulf_ 1,775,837
1,793,185
836,098
737,041
+99.057
1,433,061
Louisiana & Ark.._ 4,124,940 4.055,834
1,209.618 +223,443
La Ark & Texas- __ 161,344
682,495
99,801
+61,543
840,409
1,518,478
-32,283
Midland Valley611.625
643,908
1,358,308
Mo & North Ark...
838.829
185,572
-2,868 +188,440
894.780
Mo-Kansas-Texas._ 25.696.675 27,239,827 6,698,471 8,011,922 -1,313,451
Mo Pacific System282,671
422,550 -139,879
1,580,217
Baumont S L & W 1,362.154
3,417,471
1,794,651 +1,622,820
Internat Gt Nor
12,287,759 10,143,611
Missouri Illinois-See Central Eastern region
Missouri Pacific.- 67,953,779 69,920,180 15,506,336 16,200,799 -694,463
127,310
246,447 -119,137
NO Tex & Mex
1,577,314
1,300.818
1,157,398
1,767,832 -610,434
St L Brownsv & M 3,938,899 4,760,953
155,268
225,293
-70,025
950,578
S A Uvalde & Gulf
775,863
-98,889
Texas & Pacific
20,229,967 21,339,398 6,370,979 6,469,868
92,577
+10,097
102,674
375,079
Okla City-Ada-Atok
315,093
St L Southwestern
12.953,395 12,554,433 3,889,700 2,019,202 +1.870,498
Southern Pacific SystemNorthwestern Pao-See Central Western region
Southern Pacific-See Central Western region
3.693,295 +983,603
Texas & New Orl. 28,673,646 31,015,687 4,677,098
1,437,225 +1,051,658
5,653,267 2,488,883
Term RR Assn St L 6,132,421
-50,281
23,118
653,132
Texas Mexican
-27.163
634,484
-9,672
174,571
164,899
603,478
Wichita Falls & Sou
558,878
Total (28 roads)_ -256.896,857 267,364,749 60.072.764 59,746,106

+326.658

Total Western District (67 roads)-1131640498 1159711,166 286.307,774 247,712,187 +38595,587
Grand total (165
3128859843 3156755,105 859,637.130 733,168,657 +126468473
roads)

Weather Conditions and Results in Earlier Years.
As to weather conditions, which often are an important
factor affecting traffic and revenues in the early months
of the year, the winter of 1933, like that of 1932, 1931 and
1930, presented no unusual conditions. It should be added
however that 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 degrees
below zero. In 1929 weather conditions were not much of a
drawback in the Northern 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 suffered 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 Denver & Rio.Grande Western
between Durango and Silverton, Col., making a total of 11

Volume 138

Financial Chronicle

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 indicated that the further decrease in
gross revenue of United States railroads in 1933 of
$27,892,564 though small, and accompanied by an increase
in net earnings of $126,471,171, came after 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
and 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
preceding. For the calendar year 1927 our compilations had
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 state
ment showed a further loss in gross earnings of $30,265,342
in comparison with the poor results of 1927, accompani
ed,
however, by a saving in expense of $135,435,125, producing, therefore, a gain in net of $105,169,783, which
to that
extent acted as an offset to the much larger loss
in net
sustained in 1927. Though the further gain in
gross recorded in 1929, amounting to $162,305,781, did
not serve to
wipe out entirely the very heavy losses in
gross sustained
during the two preceding years, the showing of
the net was
the best ever made as the result of the
further increase
In the sum of $91,282,713 in that year. It should
not escape
attention that while there was very considerab
le trade revival in 1928, particularly during the last half
of the year,
and certain leading industries enjoyed prosperity
for nearly
the whole of the 12 months, full recovery from
the setback of 1927 did not ensue until 1929. During
the early
months of 1928, outside of a few excepted
industries, the
volume of trade was in many instances moderately
smaller
than it had been in 1927. There was in 1928, it
is true, a
revival of the automobile trade after the severe slump
which
that trade had experienced during the previous year,
which
slump, however, was due mainly to the fact that
the Ford
plants were than out of commission. being engaged
in devising a new model of car. But it remained for
1929 to show
what the automobile industry could do in a
period of real
trade revival and with the Ford plants once
more operating
at a normal capacity, and apparently no
obstacles of any
kind existing to full capacity production
anywhere. In like
manner it remained for 1930, 1931 and 1932
to show what
a setback the automobile trade could experience
at a time
of a general slump in business.
The 1927 hiss in net was the first the roads
of the United
States had sustained after a long series of
gains beginning
with 1921. On the other hand, previous to
1921 expenses
had been mounting up in a frightful way until
in 1920 a
point was reached where even some of the
strongest and best
managed roads were barely able to meet ordinary
running
expenses, not to mention taxes and fixed
charges. And it
was these enormously inflated expense accounts
that furnished the basis for a good part of the savings and
economies
effected in the years after that. As compared
with 1920,
the roads in both 1921 and 1922 also had the
advantage of
much more favorable weather conditions.
In 1921 the
winter was exceptionally mild, and much the
same remark
may be made with reference to the winter of
1922. This
last, while perhaps not so extremely mild as
the winter of
1921, was at all events not of unusual severity
-at least not
of such severity in most of the country as to
entail heavy
expenses for the removal of snow and the
clearing of tracks,
though the winter is declared to have been
a hard one in
certain special sections, in Wyoming and Montana,
for instance, and contiguous territory. In 1920, on
the other hand,
the winter had been exceptionally severe.




1291

In commenting on the results for 1920 and noting the tremendous increase in operating costs in that year, we took
occasion to say that, taken in conjunction with the antecedent huge additions to expenses, it constituted an unfavorable record for which no parallel could be found in American railroad history. As a matter of fact, 1920 constituted
the fourth successive year in which the net had fallen offin each year, too, in face of very substantial gains in the
gross earnings. As showing how extraordinarily poor the
results were in 1920, we may say that, while there was an
addition to the gross of no less than $1,026,235,925, net
actually fell off in amount of $303,953,253. In 1919 the
Increase in the gross was of only moderate extent (5.25%),
and yet amounted to $258,130,137. As it was accompanied,
however, by an augmentation in expenses of $401,609,745,
there was a loss in net of $143,479,608, or 15.80%. For
1918 our compilation showed an increase in the gross in the
sum of $863,892,744, or 21.40% (due in no small measure
to the advance in rates made by Director-General McAdoo
at the close of May in that year), but the addition to the
expenses reached $1,148,664,364, or 40.35%, leaving a loss
in the net of $284,771,620, or 23.92%. The prodigious augmentation in the 1918 expenses was due not merely to the
general rise in operating costs, but yet more to the tremendous advance in wages granted by Director-General McAdoo
in May 1918, and made retroactive to the 1st of January of
that year. But even for the calendar year 1917 our compilations showed that while gross had increased $430,679,120,
or 11.61%, this was attended by a rise in operating expenses
of $490,738,869, or over 20%, leaving a loss of $60,079,749
in net earnings. There was this qualifying circumstance,
however, with reference to the 1917 loss in net, namely,
that it followed strikingly good results, both as regards gross
and net, in 1916 and 1915. On the other hand, it is equally
important to remember that these gains for 1916 and 1915
represented in part a recovery of previous losses.
In the following we show the yearly comparisons as to
both gross and net for each year back to 1907. For 1910
and 1909 we take the aggregates of the monthly totals as
then published by the Inter-State Commerce Commission,
but for the preceding years we give the results just as registered by our own tables each year-a portion of the railroad
mileage of the country being then always unrepresented in
the totals, owing to the refusal of some of the roads at that
time to furnish monthly figures for publication.
Gross Earnings.

Length of Road.

Year.
Year
Given.

Year
Preceding.

1907
1908
1909 _2
1910
1911
1912
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932

$
2,287,501,605
2,235,164.873
2,605.003,302
2,836.795.091
2,805,084,723
3,012,390,205
3.162.451.434
2,972,614,302
3,166,214,616
3,702,940,241
4,138,433,260
4,900,759,309
5,173,647,054
6,204.875.141
5,552,022,979
5,522,522,416
6,342,058,872
5,961,186,643
6,177,280.802
6,435,539,259
6,195,259,346
6,168,119,487
6,339,246,882
5,335,131,510
4,230,360,663
3,157,483,014

10W1

21912 249 AA1

$
2,090,595,451
2,536,914,597
2,322,549.343
2,597,783,833
2,835,109,539
2,790,810,236
3,019,929,637
3.180.792,337
3.013,674,851
3,155,292,405
3.707.754,140
4,036,866,565
4,915,516,917
5378,639,216
6,216,050,959
5,478,828.452
5,608,371,650
6,332,874,535
5,977,687,410
6,169,453,120
6,448.564,574
6,198,384,829
6,176,941,101
6,349,330,347
5,335,664,398
4.229,261,833
21A/174c ins

Increase (+) Or
Decrease (-).
$
+196,906,164
-301.749,724
+282,453,959
+239,011,258
-30,024,816
+221,579,969
+142,521,797
-208,178,035
+152,539,765
+547.647,836
+430,679.120
+863,892,744
+258,130337
+1026.235.925
-664,027.980
+43,693,964
+733,687,222
-371,087,892
+199,593,392
+266,086,139
- 253,305,228
-30,265,342
+162,305,781
-1014,198,837
-1105,303,735
-1071,798.819
--276826414

Na Earnings.

10/2

Year
Preceding.

Miles.
173,028
199,726
228,508
237,554
241,423
239,691
241,931
246,356
249.081
249,098
250,193
233,014
233,985
235,765
235,690
235,564
235.461
234,795
236.330
236,891
238,527
240,626
241,625
242,517
242.764
242,043
241 111

Miles.
171.316
197,237
225,027
233,829
238,275
236,000
239.625
243.636
247,936
247,868
249,879
232,639
234,264
234,579
234,777
235,338
235,705
234,622
236,139
235.809
237,799
239,536
239,482
242,169
242,582
242,056
249052

Length of Road.

Year.

1907
1908
1909
1910
1911
1912
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932

Year
Given.

Year
Given.

Year
Preceding.

Increase (+) or
Decrease (-).

Year
Given.

1,
Prec ,,,,

$
660.753.545
694,999,048
901,726,065
909,470,059
883,626,478
937,978,711
901,022,312
828.522,941
1,040,304,301
1.272,639.742
1,215,110,554
905,794,715
764,578,730
461,922,776
958,653,357
1,141,598,071
1,410,968,636
1.424,240,614
1.604.400,124
1,731,509,130
1,579.621.895
1,706,067,669
1,798,200,253
1,367,577,221
971,654,527
733,368,461

$
665,285391
748,370.244
750.685,733
900,473,211
907.914,866
877,617,878
940,509,412
904,448,054
828,650,401
1,036,016,315
1,275,190,303
1.190,566,335
908.058,338
765,876,029
402,150,071
951,497,925
1,161,243,340
1,409,433,583
1,428,508,949
1,602,513,558
1,735,075,393
1,600,897,886
1,706,917,540
1,799,945,914
1,367359,116
977,800.101

$
-4,526,646
-53,371,196
+151,040.332
+8.996,848
-24,288,388
+60,340,833
-33.487,100
-75,825,113
+211,653,900
+236,623,427
-60,079,749
-284.771.620
-143.479,608
-303,953,253
+556,503.286
+190.100,146
+249.725,296
+14.807,030
+175,891,175
+128,995.572
-155,453,493
+105,169.783
+91,282,713
-432.368,693
-395,804.589
-244,431,640

Miles.
173.028
199,726
228,508
237,554
241.423
239.691
241,931
246,356
249,081
249,038
250.193
233,014
233,985
235,765
215,690
235,564
235.461
234,795
236,330
236,891
238,527
240.626
241,625
242.517
242,764
242.043

Miles.
171,316
197,237
225.027
233.829
238,275
236,000
239,625
243,636
247.936
247,868
249,879
232,639
234,264
234,579
234,777
235,338
235.705
234,622
236.139
235,809
237.799
239,536
239,482
242,169
242,582
242.0543

0.11 III

nAnilto

0K0 420 002

022102AS?

.-19A AT
, 1 21

Financial Chronicle

1292

Feb. 24 1934

Lower-priced issues gave ground in most cases-Western
Maryland 53/28, 1977,from 92% to 92, Illinois Central 43s,
New high prices were again the rule in the bond market 1966
from 75 to 723. and Chicago, Milwaukee, St. Paul &
marking
this week,reached on Wednesday after a few days of
5s, 1975,from 533 to 509. Some of the New York
Pacific
time. Net changes for the week were not great but a firm
Central bonds were strong because of favorable developments
were
prices
bond
when
1928,
In
apparent.
undertone was
indicative of payment in full for 1934 maturities. The 45,
at a peak, the difference in yield between Aaa issues and Baa
1934, advanced from 963 to 1003/8, and the 6s, 1935 from
issues was less than 1% for each group of railroad, utility 91%
to 9832. Railroad news having to do with traffic and
and industrial bonds. A similar situation, where the lower
continued favorable.
earnings
grade issues sell fairly close to the high grades, is being apWhile
there
was some irregularity in utility bond prices the
issues,
railroad
of
case
proached at the present time in the
was upward. High grades were in good
prevailing
trend
which show a difference of 1.59% between yields on Aa.and
best prices
Baa issues, and in the case of industrial bonds, which show a demand and by Friday were selling close to the
but many
spotty
more
were
for
grades
the
Lower
year.
difference of 1.14% between Aaa, and Baa groups. The
substantial advances. Federal Water
lower grade utility bonds, on the other hand, must make issues showed fairly
down 2 to 35 for the week. Indiana
considerable progress before this group equals its position Service 53's, 1954, were
to 7332, Penn Public Service 5s,
lost
1947
6s,
Electric
13/i
in 1928, for Baa utilities now yield 3.42% more than Aaa
81, and South Carolina Power 5s,
to
sold
higher
1954,
3
whole,
a
as
market
high
bond
the
grade
Taking
utilities.
the average yield on 30 Aaa bonds is now lower that at any 1957, were up 1 to 67.
Industrial bonds continued strong in most classifications,
time since 1902.
the volume of trading, though slightly diminished, reand
The average price of eight long-term treasury bonds, for
5s, 1944, were
the first time this year, is higher than it was a year ago, mained sizable. Among the oils, Texas Corp.
Oil
of N. J. 58,
Standard
1003/2.
at
week
the
for
unchanged
bank
wholesale
when the break in the market incidental to
4. Skelly Oil 53/28, 1939, lost % to
closings occurred. The Treasury Department is making 1946, gained % to 1063
4 after their previous sharp advance. In the steel group,
some effort toward somewhat longer term, or less short-term 943
Steel 5s, 1956, were % lower at 973j, while YoungsNational
financing, with the announcement of a small issue ($75,000,gained % to 89. Paramount
000) of six months bills which is to replace a $100,000,000 town Sheet & Tube 5s, 1978,
to 463' from their recent
slipped
filed,
1950,
53/2s,
Publix
month
six
issue of the usual three-month maturity. Other
6s, 1939, were also
issues were recently sold, dated Feb. 7 and Feb. 14, along high of 503/2, and Warner Bros. Pictures
sharply again
rallied
1943,
5s,
Childs
4.
off
543.,
at
lower
demand.
good
in
were
and
issues,
with the usual three-months
the tire
Among
week.
the
for
up
,
4
613
at
closed
and
13/8
Short-term interest rates in New York continued unchanged
and rubber bonds, Goodrich 6s, 1945, were down % to 84%.
this week.
The foreign bond market was somewhat irregular. ArgenHigh grade railroad bonds were firm to strong, the very
best issues continuing to sell at prices close to the highest tine and German issues were generally lower. There was
recorded in the past thirty years. Union Pacific 4s, 1947, an irregular upward movement in Japanese bonds. Scandiand Atchison, Topeka & Santa Fe gen. 4s, 1995 at 102 and navian and Finnish obligations were steady. Austrian bonds
993', respectively, were unchanged since a week ago. Penn- lost ground.
Moody's computed bond prices and bond yield averages
sylvania 432s, 1960, advanced from 1053 to 106; Chicago,
Burlington & Quincy 4s, 1949, declined from 1003/i to 100 • are given in the tables below.

The Course of the Bond Market.

MOODY'S BOND YIELD AYERAGES.t
(Based on Individual Closing Prises.)

MOODY'S BOND PRICES.
(Based On Average Yields.)
120 Domestic Corporate
120
U.8.
by Ratings.*
Gov. Domes1934
Bonds. tie.
Daily
Baa.
A.
Aa.
Corp.* Aaa.
Averages. 00

75.29

57.64

83.97 98.88
82.38 98.73
78.44 98.09
74.25 97.00
88.50 101.14
74.25 96.54
89.31 99.04
70.05 78.44
87.69 85.61
65.71 62.09

C

88.50

78.21 102.64

87.30
87.43
87.56
87.43
87.83
88.10
87.56
87.04
86.12

WOCRI,
..COMM
000MIsMCC1CO4

75.50
74.36
70.52
66.55
80.37
66.38
77.66
53.16
67.86
37.94

88.50
88.36
88.50
88.50
88.36
88.23
87.69
87.43

MMWMMMMMM
CM..MCNCM.0

89.31
87.96
84.85
82.02
93.40
81.78
89.31
71.87
78.55
54.43

ommomomm momommamo mmoommmmony

107.67 98.41
107.67 97.16
106.25 95.48
105.37 93.26
110.42 101.97
105.37 93.11
108.03 100.33
97.47 82.99
103.99 89.72
85.61 71.38

.040...100M
Mv.,-.MMOMC

91.53
90.55
87.69
84.85
95.48
84.85
92.39
74.15
82.62
57.67

P. U. /Miss.

C

95.18 110.23 101.97
Stock
95.48 110.42 101.81
95.18 110.05 101.64
95.33 110.05 101.64
95.33 109.86 101.64
95.33 109.86 101.47
95.03 109.86 100.81
94.58 109.49 100.49
94.29 109.31 100.33
Stock
93.99 109.12 100.17
93.99 109.12 100.00
93.99 109.12 100.17
93.99 109.12 100.00
94.43 109.31 100.00
94.58 109.49 100.33
94.14 108.94 99.84
93.85 108.75 99.68
93.26 108.75 99.36

RR.

m

Feb. 23-- 102.34
22__
21__ 102.31
20__ 102.28
19_ 102.24
17._ 102.21
16_ 102.21
15_ 102.17
14__ 101.97
13__ 101.82
12__
10__ 101.73
9_ 101.69
8-- 101.82
7_ 101.76
6-- 101.93
5_ 102.02
3__ 102.07
2__ 101.77
I__ 101.47
Weekly
Jan. 26__ 100.41
19__ 100.36
12_ 99.71
5__ 100.42
High 1934 102.34
Low 1934 99.08
High 1913 103.82
Low 1933 98.20
High 1932 103.17
Low 1932 89.27
Yr. AgoFeb.23'33 99.60
1 Yrs.Ago
Cs% 0.2.10 GA en

93.26 79.68
Excha nge Clo
93.40 80.14
93.26 80.03
93.40 80.26
93.40 80.37
93.26 80.37
93.11 80.03
92.68 79.45
92.25 79.11
Excha nge Clo
91.81 78.77
92.10 78.88
91.81 78.99
92.10 78.88
92.53 79.80
92.68 79.80
92.10 79.34
91.81 78.99
90.69 78.21

120 Domestic
Corporate' by Groups.

88.36 100.81

80.03

101.14
100.98
100.98
100.81
100.81
100.49
100.17
100.33
100.17
100.00
100.00
100.00
100.33
100.33
99.68
99.68
99.68

82.99

120 Domestic Corporate
AU
by Ratings.
120
1934
Daily
DomesBaa.
A.
Aa.
Aaa.
Averages. tie.
Feb. 23__
22__
21__
20...
19_
17__
16_
15_
14_
13__
12__
109._

Weekly
Jan. 26__
19..
12_ _
Low 1934
High 1934
Low 1933
High 1933
Low 1932
High 1932
Yr..4goFeb.23'33
2 Yrs.Ago
Feb.23'32

5.06

4.16

4.63

5.04
5.06
5.05
5.05
5.05
5.07
5.10
5.12

4.15
4.17
4.17
4.18
4.18
4.18
4.20
4.21

4.64
4.65
4.65
4.65
4.66
4.70
4.72
4.73

5.14
5.14
5.14
5.14
5.11
5.10
5.13
5.15
5.19

4.22
4.22
4.22
4.22
4.21
4.20
4.23
4.24
4.24

4.74
4.75
4.74
4.75
4.75
4.73
4.78
4.77
4.79

5.31
5.38
5.59
5.81
5.04
5.81
5.25
6.75
5.90
8.74

4.30
4.30
4.38
4.43
4.15
4.43
4.28
4.91
4.51
5.75

4.85
4.93
5.04

6.37

4.59

5.19
Stock
5.18
5.19
5.18
5.18
5.19
5.20
5.23
5.26
Stock
5.29
5.27
5.29
5.27
5.24
5.23
5.27
5.29
6.37

tt
so
ForP. U. Indus. signs.

120 Domestic
Corporate by Groups.
RR.

4.93
5.54
6.24
Excha nge Clo sed
5.53
4.92
6.20
5.54
4.93
6.21
5.53
4.93
6.19
5.53
4.92
6.18
5.54
4.92
6.18
4.94
5.55
6.21
5.59
4.98
6.26
5.61
5.03
6.29
Excha nge Clo sed
5.62
5.07
6.32
5.61
5.05
6.31
5.60
5.06
6.30
5.61
5.05
6.31
5.58
5.01
6.23
4.99
5.56
6.23
5.03
5.60
6.27
5.05
5.64
6.30
5.71
5.11
6.37

4.63
5.20
4.73
5.96
5.44
7.03

5.47
5.57
5.81
6.04
5.18
6.06
5.47
6.98
6.34
9.23

6.62
6.73
7.12
7.56
6.18
7.58
6.42
9.44
7.41
12.96

5.23
5.32
5.54
5.74
4.92
5.75
5.19
7.22
6.30
10.49

5.88
6.01
6.35
6.74
5.53
6.74
5.47
7.17
5.59
7.66

5.53

6.64

8.73

6.95

6.21

5.19

4.70

7.49

4.68
4.69
4.69
4.70
4.70
4.72
4.74
4.73

7.51
7.52
7.51
7.51
7.52
7.51
7.53
7.68

4.74
4.75
4.75
4.75
4.73
4.73
4.77
4.77
4.77

7.57
7.57
7.62
7.61
7.58
7.55
7.53
7.55
7.63

4.82
4.83
4.87
4.94
4.68
4.97
4.81
6.35
5.75
8.11

7.97
8.05
8.33
8.55
7.49
8.65
8.63
11.19
9.88
15.83

5.96

10.07

12.99
70_45 72.411
6.09
5.15
0285 81 42 72 08 11777
74 QA
6.73
the average
either
do
not
show
to
and
purport
years)
31
In
"Idealone
of
bond
(45(%
maturing
coupon,
basis
the
on
yields
average
from
computed
are
•These prices
relative levels and the relative movement of
level or the average movement of actual price quotations. They merely serve to Illustrate In a more comprehensive way the
back to 1928, see the issue of Feb.6 1932, eve 907
Yield averages, the latter being the truer picture of the bond market. For Moody's Index of bond prices by months
was
indexes
published in the issue of Feb. 10 1934. page
these
of
list
complete
bonds
computing
used
latent
in
',The
issues.
Treasury
**Actual average price of 8 long-term
920. •i• Average of 30 foreign bonds but adjusted to a comparable basis with previous averages of 40 foreign bonds.

L. T. Crowley Assumes Office as Chairman of Federal
Deposit Insurance Corporation.
Leo T. Crowley of Madison, Wis., on Feb. 21 assumed the
office as Chairman of the Board of the Federal Deposit
Insurance Corporation, succeeding Walter J. Cummings,
resigned.
Secretary Morgenthau administered the oath.
Resolution Opposing Principle of Deposit Insurance
Adopted by Connecticut Bankers' Association.
A resolution voicing opposition to the principle of deposit
insurance, together with a recommendation that the temporary insurance be continued until July 1 1936, was adopted
by the Connecticut Bankers' Association at its annual dinner
meeting in the Hotel Taft on Feb. 8, according to the New
Haven "Register" of Feb. 9, which also stated in part:




6.96

8.71

7.01

6.26

6.02

About 300 bankers from all parts of the State were in attendance.
United States Senator Frederic C. Walcott (Rep.), of Norfolk. the
principal speaker, expressed himself as being In accord with the Association's views. During his address he urged complete support of the NRA
and the National Administration.
Mayor Murphy and State Bank Commissioner Perry Speak.
ir Mayor John W. Murphy and State Bank Commissioner Walter Perry
were the other speakers, Warren M. Crawford, President of the Association, presided as toastmaster, and Rev. Richard 11. Clapp pronounced the
Invocation.
Judicious handling of the $2,000,000.000 foreign exchange appropriation.
said Senator Walcott. together with a shutting off of credit, will avert the
war which seems imminent in Europe if conditions continue in their present
trend.
Mr. Perry. speaking in detail of recent developments In banking law,
discussed the problem of deposit insurance, expressing the opinion that
the public is practically ignorant of the intent, purpose and workings of
the project which carries with it the possibility that it might account for
the withdrawal of many banks from the Federal Reserve System.

z

Volume 138

Financial Chronicle

1293

Annual Report of Comptroller of Currency, J. F. T. O'Connor—Recommends Revision of Banking
Act of 1933—Would Also Clarify Provisions Affecting Affiliates—Finds National Banks Barred
from Purchasing and Selling Stocks for Account of Customers—Reports Voluntary Liquidation in Year Ended Oct. 31 1933 of 155 National Banks with Capital of .526,805,000—Sees
Strengthening of Capital Structure of National Banks Through Purchase of Preferred Stock
by RFC.
„While describing the Banking Act of 1933, as a whole, as
sound and containing "many needed provisions of law,"
Comptroller of the Currency O'Connor in his annual report
made available Feb. 14, finds, however, that "like most
major legislation, application by administrative officers
reveals certain features which, in practice, work in a cumbersome manner or bring about the situation which its
framers did not intend." He therefore recommends "that
Congress enact correction and clarifying legislation."
"These recommendations," he continues, "while made as
specific suggestions for revision of the Act in those respects
which appear, in the light of practical operation, to require
revision, and as to the defects which require remedies, are
not intended to be specific with respect to the provisions
or language of possible amendments."
Summarizing the Comptroller's recommendations, Associated Press accounts from Washington Feb. 14 said:
Mr. O'Connor proposed more than a dozen changes in the important law
of last June. which directed National banks to divorce themselves from investment affiliates as an aftermath of exposures of interlocking practices
before the Senate Banking Committee.
Most of Mr. O'Connor's proposals dealt with highly technical details
of
the law. But five drew immediate attention:
Permission for the Comptroller to permit State banks joining the National system to carry non-conforming assets "acceptable because
of their
intrinsic value."
A legislative decision on whether divorcement of investment
affiliates
applies to mortgage corporations making loans on real estate securities
or
chattel mortgage securities.
Changes in present law which may prevent corporations
from terminating
old-age benefit contributions "to the possible
injury and ultimate deed-.
ment of their employees."
A return to old requirements on amounts of
stock which must be held
in a bank to qualify directors.
Permission for a National bank to buy or sell
corporate stocks for the
account of one of its customers,

The Comptroller's report also dealt with developments
following the deelaration of the bank holiday in March of
last year. He stated that there were 5,938 active National
banks which suspended ordinary banking operations in
accordance with the President's proclamation. Under the
plan for reopening the banks, the Comptroller continued,
4,509 National banks, with deposits of $16,222,583,000,
based on the Dec. 31 1932 call for reports of condition, were
licensed to reopen during the three days—March 13, 14 and
15—leaving 1,429 National banks unlicensed as of March
16 1933, with deposits of $1,977,672,988. In addition to
the 1,429 National banks unlicensed on March 16, the
report points out, conservators were appointed for seven
other National banks, making a total of 1,436 National
banks the affairs of which had not been definitely and finally
disposed of on March 16. The report goes on to say:
Total deposits of these 1,436 National banks, based upon the
Dec. 31
1932 call report as to the 341 banks subsequently disposed of
without the
appointments o'conservators, and upon conservators'first report
figures for
the 1,095 conservator banks, totaled $1,996,645.008. In
connection with
the disposition of these banks and the deposits thereof it is
found that as of
Dec. 31 1933, 490 with deposits of $562,806,477 had been
licensed,
deposits of $791,014,099 placed in receivership, 445 with deposits 338 with
of $416,701,701 were still unlicensed, and 163 with deposits of
$226.122,731 were
otherwise in liquidation. Total deposits made available
to creditors of
the 1,436 banks•to Dec. 31 1933. through the licensing and
reopening of
such banks or the formation of new banks and the sale
of assets to and
assumption of liability by such banks, amounted to
approximately $773,227,000. Of such deposits released $512,471,000 had been
made available
to creditors of the 490 licensed banks, 5109.323,000 to creditors
of the 338
banks placed in receivership and 8151,433,000 to creditors
of the 163 banks
otherwise in liquidation. There has been released through
distributions by
conservators and receivers, in addition to the above amount
of $773,227,000,
approximately $230,000,000, leaving tied up approximately
Of the remaining 445 unlicensed National banks. 335 with $993,418,000.
frozen deposits
of 5324,003,000, based on the Oct. 25 1933 call, had approved
plans for
reorganization and 110 with frozen deposits of $68,582,000 had
disapproved
plans,
While the approval of a plan of reorganization does not
complete the work
Involved in these cases, I feel that the major problem of
the
banks from a reorganization standpoint has been largely solved. unlicensed
.
.
There is another phase of banking which is now having the
active attention of the Comptroller's office--the strengthening of the
capital structure
of National banks by new capital through the purchase by the
Reconstruction Finance Corporation of preferred stock. I am confident
that with an
extension of the powers of the Reconstruction Finance Corporation
and a
completion of the present policy In this direction the National
banking
system will be on a firm basis,
Under the provisions of the Banking Act of 1933 the Comptroller
of the
Currency was named an ex-officio member of the Federal
Deposit Insurance Corporation Board. The President appointed the two other
members:
Hon. Walter J. Cummings. of Chicago, and Hon. E. G. Bennett, of Ogden,
Utah, and on Sept. 11 1933 they took their oath. During the
interim
between the passage of the law and the organization of the Board.
I felt
it necessary to lay the foundation for the organization of the corporation
in view of' the fact that it would he necessary to examine over 8,000 State
institutions before Jan. 1 1934. . . .
In addition to the new duties of the Comptroller as a member of the
Federal Deposit Insurance Corporation Board, he was appointed to mom-




bership on two special committees created by the President, one to be
known as the Deposit Liquidation Board, on Oct. 15 1933, which constitutes a special division of the Reconstruction Finance Corporation. The
President appointed this Board for the purpose of making loans to banks
closed since Jan. 1 1933 on their assets. The Board was constituted as
follows:
C. B. Merriam, the head of the special Board; Jesse H. Jones, Chairman
of the Reconstruction Finance Corporation; Dean G. Acheson. Under
Secretary of the Treasury; J. F. T. O'Connor, Comptroller of the Currency;
Walter J. Cummings, Chairman, Federal Deposit Insurance Corporation;
Lewis Douglas, Director of the Budget.
"The purposes of the Deposit Liquidation Division," the President's
announcement read, "will be to stimulate and encourage liquidating agents
of banks closed after Jan. 1 1933 to borrow from the Reconstruction Finance
Corporation in order that funds may be made available to depositors as
quickly as possible. The general intention is to make loans on the assets
of closed banks for the benefit of depositors up to a maximum of 50% of
their deposits, inclusive of distributions heretofore made. This does not,
of course, mean that in a bank whose remaining assets are worthless, the
depositors will get 50%. They will get in such a case only their share in
the remaining assets.
"It is estimated that the maximum loanable value of the assets of banks
closed during the year 1933 will not exceed $1,000.000,000, and it is hoped
that the distribution will approximate that amount."
We have acted speedily in coming to the rescue of depositors in closed
banking institutions. Between Oct. 17, when this Board started functioning, and Jan. 2 1934, the Reconstruction Finance Corporation authorized
$243,119,582.97 for distribution to depositors in 496 closed banks, nearly
all of which were closed after the first of the year.
The President on Oct. 23 1933 announced the establishment of a special
Reconstruction Finance Corporation division for bank reorganization and
to make recommendations for purchase by the Reconstruction Finance
Corporation of preferred stock of State banks. The following members
of this new division were named by the President:
Harvey Couch, to be its head; Jesse Joces, Chairman of the Reconstruction Finance Corporation, ex-officio; Eugene Black, Governor of the
Federal Reserve Board; Dean Acheson, Under Secretary of the Treasury;
Lewis Douglas, Director of the Budget; J. F. T. O'Connor, Comptroller
of the Currency; Walter J. Cummings, Chairman, Federal Deposit Insurance Corporation; Henry Bruere, Frank Walker.
At the same time the President announced that "Governor Black is
to head a subcommittee on co-operation with member banks in this same
effort." The prime purpose behind the formation of this special division
was to prepare State banks for eligibility in the Federal Deposit Insurance
Corporation by Jan. 1 in that the sale by them of preferred stock will
strengthen their capital structure. "We hope," President Roosevelt said,
in announcing the creation of this Division, "that all banks will take
advantage of this opportunity to put themselves in an easy cash position
to help in the work of recovery. We need the banks and want them to
have adequate capital. As a rule such capital cannot now easily be found
in the communities. As recovery continues, such capital will be found.
But in the meanwhile and temporarily, but for such length of time as may
be necessary, the Government will supply the necessary capital through the
Reconstruction Finance Corporation in its purchase of preferred stock.
The R
Reconstruction Finance Corporation will thus s
recovery
serve as a r
finance corporation. . . .
As a member of the Board appointed by President Roosevelt. I can say
with pardonable pride that we have made a good record so far in strengthening State banks through the purchases of their preferred stocks, capital
notes and debentures by the Reconstruction Finance Corporation. From
Oct. 23, the date of creation of this division by the President, to the close
of business on Dec. 31, a total of 3,323 non-member banks had a total of
$242,100,000 approved for issue, of which amount 584,936,000 consisted
of preferred stock and $157.164,000 consisted of capital notes and debentures.
In addition to the above record made by the special division In such a
short time. the Reconstruction Finance Corporation during the seven
months ended Dec. 31 1933 approved the purchase of a total of $65.336,000
in preferred stock, capital notes and debentures in 78 non-member banks.
During the same time the corporation approved 1,059 applications from
member banks for a total issue of 5502,930.000, of which amount $372,868,000 was in Preferred stock and $130,062,000 in capital notes and debentures. . . .

The Comptroller's recommendations regarding 'revision of
the Banking Act follow:
Legislation.
On June 16 1933 "The Banking Act of 1933" became law. This leg'slotion as a whole is sound and contains many much needed provisions of
law, but like most major legislation, application by administrative officers
reveals certain features which, in practice, work in a cumbersome manner
or bring about situations which its framers did not intend. I recommend,
therefore, that Congress enact corrective and clarifying legislation in the
following respects. These recommendations, while made as specific suggestions for revision of the Act in those respects which appear, in the light
of practical operation, to require revision, and as to the defects which require remedies, are not intended to be specific with respect to the provisions
or language of possible amendments:
1. Section 2 of the Act defines "affiliates" and "holding company affiliates" of a member bank. Numerous questions have arisen with respect
to the application of these definitions to various situations with the result
that the Secretary of the Treasury requested an opinion from the Attorney-General, who held that the law must be interpreted literally since
the
language was unambiguous, even though it might appear to be in conflict
with the intentions of the framers of the Act as expressed subsequent
to the
passage of the legislation. As a result it has been found that a large number of different types of corporations, which Congress may not
have intended affecting, are apparent affiliates of member banks,
such as retail
clothing corporations, packing companies, newspapers,
lumber yards,
steamship companies, churches, eleemosynary institutions,
&c.
Section 27 of the Act, which amends Section 5211 of the Revised
Statutes
(U.S.C., title 12, section 161; supplement VI. title 12, section
161), provides that each National banking association shall obtain from its
affiliates
not less than three reports during each year containing
such Information
as in the judgment of the Comptroller of the
Currency shall be necessary

1294

Financial Chronicle

bank, and also
to disclose fully the relations between such affiliate and such
which is an
provides for the publication of such reports. Section 5 (c),
makes
amendment of Section 9 of the Federal Reserve Act as amended,
ReFederal
the
similar provisions with respect to State member banks of
serve System.
accumulation
The result of these mandatory requirements has been the
which has no pracin the Comptroller's office of a great deal of information
the incidental
tical use, since in many cases there is no dealing between
by the
affiliates and the National banks except the relationship created
of
publication
and
furnishing
the
Moreover,
definition under the Act.
as expense on some of
such reports has placed a tremendous burden as well
instances in the minds
the banks and has naturally led to confusion in some
arises under the defiof the public. This accidental affiliate relationship
communities, the
small
in
particularly
nition by reason of the fact that,
men for directors
leading business men and the most eligible and desirable
business interests of their own,
of the bank also control one or more private
if the affiliate rewith the result the bank faces the loss of these directors
lationship is to be discontinued.
connection to amend
While it is not believed necessary in this particular
to amend the sections
the definition with respect to affiliates, it is advisable
in such a way as to give
calling for reports and the publication of reports
Federal Reserve
discretion both to the Comptroller of the Currency and the
reports upon a proper
Board to waive the furnishing or publication of the
affiliates in addition to
showing. Tnere are, however, certain accidental
intended to embrace in
those mentioned which it is not thought Congress
be specifically exempted,
the requirements set out in the Act, which should
as follows:
of the voting shares cd
(a) Where a bank is in possession of a majority
to the bank and may
a corporation as collateral to a debt of a corporation
to protect said debt.
or may not control said shares for voting purposes
of the voting
majority
the
of
control
into
(b) Where the bank has come
such shares which were
shares of a corporation as a result of foreclosure on
collateral to a debt due the bank.
shares of a corpora(c) Where the bank holds a majority of the voting
subject to the terms of the
tion as trustee and controls the voting of same
direction in the trust instrutrust instrument or without any governing
duty to exercise the control
ment, but merely subject to the common-law
the particular trust estate; as for
over said shares in toe best interests of
has foreclosed on
example, where a bank as trustee in a mortgage indenture
formed corporation, all or
the mortgage, taking title to the fee in a newly
controlled by the bank in its
a majority of the voting atom of which is
capacity as trustee or the beneficiaries.
of voting stock in a custody account
(d) Where a bank holds a majority
possibly being regisfor the benefit of certain of its customers, the stock
absence of specific instructions
tered in the name of the bank, and in the
to be voted as it sees fit,
from the customer. the bank causing such stock
real party in interest, namely, the
but presumably for the benefit of the
customer. .
should be clarified so as to
The definitions under Section 2 of the Act
whether or not such definitions
remove the doubt which now exists as to
the word "partnership" Is not
apply to partnerships having in mind that
and 33 of the Act. Clarificaused in Section 2 but is used in Sections 32
doubt as to whether or not a bank can
tion should be made to eliminate the
affiliate, as arises where a corporation
have more than one holding company
company affiliate of a bank by
controls a corporation which is a holding
of the bank's stock. The secreason of owning Or controlling a majority
whether or not a subsidiary
indicate
to
tion should also be clarified so as
thereof thereby also becomes an affiliate
of a holding company or an affiliate
company. This is important beof the bank controlled by the holding
governing transactions between the
cause of the provisions of Section 13
with respect to divorcements of
20
bank and its affiliates and Section
affiliates.
member bank shall directly or indi2. Section 11 (b) provides that no
interest on any deposit which is
rectly by any device whatsoever pay any
deposits of public funds made by or on
Payable on demand except as to
district, or other subdivision or mubehalf of any State, county, school
interest is required under State
nicipality with respect to which payment of
bank shall pay any time deposit
law. It also provides that no member
before its maturity.
interest on a demand deposit
The foregoing section permits a bank to pay
subdivision thereof, where paymade by or on behalf of a Stave or political
but no exception or provision
ment of interest is required under State law,
of Federal public
for payment of interest is made with respect to deposits
the depositing official to
funds upon which funds existing statutes require
is confronted
official
depositing
Federal
obtain interest. As a result, the
interest on his deposits.
on the one hand with the requirement that he obtain
hand, by this section
If placed in the bank, whereas the bank, on the other
on a demand deposit,
Is apparently prohibited from paying such interest
of public funds and
officials
depositing
thus discriminating against Federal
be corrected.
In favor of State depositing officials. This should
time deposit before
This section also prohibits a bank from paying any
instances, which
Its maturity. This results in a hardship in particular
used. In many
language
was probably not contemplated in selecting the
into by depositors
instances by reason of a restriction agreement entered
have agreed to
of banks or as a result of reorganizations, the depositors
at extended intervals, such
accept a percentage of their deposits payable
deposits have
restricted
as six months, one year, two years, Ste. Such
Corporation as not debeen considered by the Federal Deposit Insurance
not insurable. Many of
Posits available in due course of business, hence
are willing and analous
the banks are now la such liquid position that they
deposits but the literal applicato anticipate payment of the restricted
prohibit such anticipation,
tion of the language of this section appears to
everything possible to make
witn the result tnat the present policy of doing
frozen deposits available to depositors is obstructed. no
executive officer
substance that
3. Section 12 of the Act provides in
become indebted to any
of any member bank shall borrow or otnerwise
officer. This section includes a
member bank of which he is an executive
officer." in toe absence of a definiPenal provision. The term "executive
meaning which is definite enough
tion by Congress, is not susceptible of a
his examiners to advise the
to enable the Comptroller of the Currency and
certainty or to determine in the
banks in regard thereto with any degree of
violated by reason of a
examination of a bank whether the section has been
loan to a particular officer.
Aug. 18 1933 has stated that
The Attorney-General in an opinion dated
as to who are "executive
no categorical answer could be given to the question
under which one is known
officers," because "it is not the designation
as an 'executive officer.'"
but the nature of his duties which characterize him
this section as to whether or
The question also arises in connection with
n endorsement
accommodatio
not a bank Is prohibited from accepting the
connection with an obligation not
or guarantee of an executive officer in
in favor of the bank by execuIncurred for his benefit, such as agreements
depreciation or elimination of assets
tive officers as a guarantee against
capital. This section should also be clariin order to avoid impairments of
whether or not a loan to a partnership in which an
indicate
to
as
so
fied
within the prohibition.
executive officer of the bank is a partner comes




Feb. 24 1934

4. Section 16, amending paragraph 7 of Section 5136, Revised Statutes,
as amended (U.S.C., title 12, sec. 24; supp. VI, title 12. sec. 24), provides
in part that "The business of dealing in investment securities by National
banks shall be limited to purchasing and selling such securities without
recourse solely upon the order and for the account of customers, And in
no case for its own account." The section also defines "investment securities" as being marketable obligations evidencing indebtedness of any person, copartnership, association, or corporation in the form of bonds, notes
and (or) debentures. It would appear from the language that a National
bank is prohibited from performing the service of purchasing or selling
corporate stocks for the account of one of its customers. Since this does
not entail the investment by the bank or its own funds and the bank merely
acts in an accommodation capacity, it is believed that it was not the intention of Congress to penalize the public located in communities removed
from the money centers in disposing of or purchasing securities in the form
of corporate stocks for investment purposes.
5. Section 18, amending Section 5139, Revised Statutes, as amended
(U.S.C., title 12, sec. 52), provides in part that "After one year from the
date of the enactment of the Banking Act of 1933 no certificate representing stock of any such association shall represent the stock of any other
corporation," with provision for certain exceptions. Some of the Nadonal
banks are confronted with the problem of not being able to secure the surrender of certificates by all the holders of shares of stock of the bank for
the purpose of issuing new shares which will comply with the provisions of
the Act if the Act is not self-operative. It is possible that Congress intended that such separation of interest would be automatic without the
issuance of new certificates representing snares of bank stock. If such
were the intention, the section should be clarified by providing that its
prohibitions shall be effective notwithstanding any representations to the
contrary that may thereafter appear on such stock certificates.
6. Section 20 of the Act provides that after one year from the date of
its enactment, no member bank shall be affiliated in any manner with
any corporation, association, business trust, or other similar organization
engaged principally in the issue, flotation, underwriting, public sale, or
distribution at wholesale or retail or through syndicate participation of
stocks, bonds, debentures, notes or other securities. Violation of this
section subjects the member bank to a penalty not exceeding 11,000 per
day for each day during which such violation continues.
There is some uncertainty as to whether or not the activities of certain
affiliate corporations come within the provisions of this penal statute.
While there Is indication in the debates that it was aimed at what is commonly known as securities affiliates in the sense of affiliates dealing in
stock exchange securities, yet the language is broad and refers to "bonds,
debentures, notes, or other securities." Numerous National banks are
affiliated through common stock ownership with what is commonly known
as a mortgage corporation, which makes loans on real estate securities or
in some cases may make loans on chattel mortgage securities, on automobiles, or other chattels. There has, in the past, been some encouragement
to the organization of such affiliates, even since the passage of this Act.
for the purpose ofsuch affiliates borrowing from the Reconstruction Finance
Corporation, and thereby in turn facilitating extension of credit where
credit was needed, and the banks themselves could not for various reasons
extend such credit. The section should be so clarified as to enable those
affected by its penal provisions to clearly understand what particular activities are embraced within the scope of the section.
7. Section 21 (a) provides that—
After the expiration of one year after the date of enactment of this Act
it shall be unlawful (1) For any person, firm, corporation, association,
business trust, or other similar organization, engaged in the business of
issuing, underwriting, selling, or distributing, at wholesale or retail, or
through syndicate participation, stocks, bonds, debentures, notes, or other
securities, to engage at the same time to any extent whatever in the business
of receiving deposits subject to check or to repayment upon presentation
of a passbook, certificate of deposit, or otner evidence of debt, or upon
request of the depositor; or
(2) For any person, firm, corporation, associatidn, business trust, or
other similar organization, other than a financial institution or private
banker subject to examination and regulation under State or Federal law,
to engage to any extent wnatever in the business of receiving deposits
cersubject to check or to repayment upon presentation of a passbook,
tificate of deposit, or other evidence of debt, or upon request of the depositor, unless such person. firm, corporation, association, business trust,
or other similar organization shall submit to periodic examination by the
Comptroller of the Currency or by the Federal Reserve bank of the district
and shall make and publish periodic reports of its condition, exhibiting
in detail its resources and liabilities, such examination and reports to be
made and published at the same times and in the same manner and with
like effect and penalties as are now provided by law in respect of national
banking associations transacting business in the same locality.
This section is likewise a penal provision and (a) (1) requires the same
clarification as is required of Section 20,so that it can be clearly understood
as to what dealing in securities brings a business entity within its application.
' Section (a) (2) requires clarification because its literal language may
affect activities not contemplated. For example, a large number of corporations for the accommodation of their employees and families offer
facilities for leaving funds on deposit with the corporation at interest. Some
corporations permit employees to save through deductions from pay roll
which are held by the corporation and payable on demand with interest
to the employee. Other corporations have old-age benefit funds to which
contributions are made by employees by way of a deposit of funds, which
deposit in certain instances may be repayable to the employee on demand,
particularly if he should leave the employment. If such activities are to
be considered as engaging in the "business of receiving deposits" where
there is not a holding out to the general public, then, of course, such corporations as to which such activities are merely incidental to their primary
business, will choose to terminate such arrangement to the possible injury
and ultimate detriment of their employees rather than submit to examination and make and publish reports of condition of the corporation as a whole.
8. Section 26 (a). The second sentence of the first paragraph of Section
5200 of the Revised Statutes, as amended (U.S.C., title 12. sec. 84; suppl
VI, title 12, sec. 84), is amended by inserting before the period at the end
thereof the following:
and shall include in the case of obligations of a corporation all obligations
of all subsidiaries thereof in which such corporation owns or controls a
majority interest.
This section requires clarification for the purpose of determining whether
or not the obligations of all subsidiary corporations must be totaled for
the purpose of determining whether or not an excess loan has been made
where the bank has made no loan to the parent corporation. The literal
language of the section would indicate that if the parent corporation is not
indebted to the bank, then the obligations of its subsidiaries need not be
totaled as one obligation for limitation purposes. but may be considered as
Individual loans. Such interpretation is consistent with the practice of
not totaling loans to individual partners where the partnership itself is
not indebted to the bank and the individual obligations of the partners
were not incurred for the benefit of the partnership.
There Is considerable uncertainty as to what constitutes a subsidiary
as instances have arisen where the parent corporation is six corporations
removed from another corporation, which is in a sense an affiliate, in that

Volume 138

Financial Chronicle

each corporation down the line controls the succeeding corporation with
the technical result that the first corporation has the possibility of controlling the sixth corporation, although there are five intervening groups of
stockholders, and although as a matter of fact there is no actual control
exercised by the first corporation over the conduct of the business of the
sixth corporation.
9. Section 31 (reading in part)After one year from the date of enactment of this Act, notwithstanding
any other provisions of law, toe board of directors, board of trustees, or
other similar governing body of every national banking association and of
every State bank or trust company which is a member of the Federal
Reserve System shall consist of not less than five nor more than 25 members;
and every director, trustee, or other member of such governing
body shall
be the bona fide owner in his own right of shares of stock of
banking
association. State bank or trust company having a par value in such
the
aggregate
of not less than $2,500, unles .the capital of the bank shall not
exceed
$50,000, in which case he must own in his own right shares
having a par
value in the aggregate of not less than $1,500 or unless the capital
the
bank shall not exceed $25,000, in which case he must own in his ownof
right
shares having a par value in the aggregate of not less than
$1.000.
In many cases serious practical objection has arisen with respect to the
provision in this section increasing the amount of stock which a director is
required to own for qualification, particularly in small communities, for
the following reasons:
First, frequently, present directors whom it is desirable to retain on
the
board are financially unable to make further investment in bank
stock.
sometimes because they have already contributed to the limit voluntarily
for the purpose of meeting capital impairments, &c.
Second, in soot() cases the stock is closely held, with the result that
there is none available for purchase by the directors except at a prohibitive
price beyond the intrinsic worth of the stock. Incidents have
arisen
where the present directors will no longer be able to qualify with this
requirement, and other desirable directors are either unavailable or
cannot
be persuaded to purchase requisite stock to qualify, with the
result that
the bank finds itself with less than the required number
Of qualified directors and unable to obtain the necessary additional directors.
This condition is particularly true with respect to the smaller
banks
and should be amended to restore the requirements
of the law in existence
before the amendment of June 16 1933.
10. Section 32 (reading in part)From and after Jan. 1 1934, no officer or director of
any member bank
shall be an officer, director, or manager
of any corporation, partnership, or
unincorporated association engaged primarily
in the business of purchasing.
selling or negotiating securities.
The same comment made as to Section 20 applies to
this section in that
it should be clarified so as to indicate clearly
what type of securities are
referred to. That is, whether as would seem likely, it was
intended to
apply to the business of dealing in securities commonly dealt
in on the stock
exchange or whether it is to be taken in the broad sense so as
to include the
business of making direct mortgage loans or buying and selling mortgage
loans.
11. Section 33. The Act entitled "An Act to suplement existing laws
against unlawful restraints and monopolies, and for other purposes,"
approved Oct. 15 1914, as amended (U.S.C., title 15, sec. 19) is
hereby
amended by adding after Section 8 thereof the following new section:
Sec. SA. That from and after the 1st day of January 1934. no director.
officer, or employee of any bank, banking association, or trust company,
organized or operating under the laws of the United States
shall be at the
same time a director, officer, or employee
of a corporation (other than a
mutual savings bank) or a member of a partnership
organized for any purpose whatsoever which shall make loans secured by stock
or bond collateral
to any individual, association, partnership, or corporation
other than its
own subsidiaries.
This section, if applied literally, has had an effect in many cases possibly
not contemplated by Congress. It is to be noted that the prohibition
applies to a corporation merely if it makes such secured loans. In other
words, if in the course of a year it happened to make two loans secured by
stock or bond collateral as an accidental incident to its business, it comes
within the application of the section, regardless of the fact that it
is not
even slightly engaged in the business of making such loans. In large centres
banks have on their board of directors men with wide business interests,
some of whom may be connected with a number of large
corporations,
most of which at some time or other may advance funds secured
by stock
or bond collateral. A retailer may advance them to manufacturing
a
concern whose product it intends to buy. A corporation
may loan funds to
some of its employees secured by stock of the corporation
owned by the
employee. The danger of an accidental violation of this section
acts as a
deterrent on desirable men with wide business
interest and ability acting
as directors of the bank, because
they feel they cannot hope to keen so
intimately in touch with the daily activities of the
other corporations in
which they are interested as to be advised
when such corporations in an
isolated case may happen to make a loan secured
by stock or bond collateral. whereas if the section were limited to engaging
in the business of
making such loans, such problems would be avoided.
12. Section 24 (b), amending Section 3 of Act of Nov. 7 1918.
as amended
(U.S.C., title 12, section 33), dealing with the consolidation of
two National
banks, should be completely rewritten so as to provide (1)
for effective
passage of trust fiduciary powers; (2) accountability to dissenting
stockholders for proceeds of sale of stock in excess of the appraised value
placed
thereon; (3) to meet the situation where one appraiser refuses to agree
with
the other two appraisers as provided for in the Act.
13. U.S.R.S.. Sections 5162. 5163. 5164, 5165. and Act of June 20 1874,
c. 343, Section 4. provide that in the withdrawal or transfer of registered
bonds.to secure circulation which are pledged with the Treasurer of the
United States, such bonds shall be countersigned by the Comptroller
of
the Currency. The volume of this countersigning is so heavy due to
the
increased National bank circulation that it seriously interferes and
handicaps the Comptroller and his deputies in handling other matters far
more important. It is recommended, therefore, that this section
be
amended to provide that the Comptroller of the Currency may designate
one or more persons to make these countersignatures.
14. Section 19. Section 5144 of the Revised Statutes, as amended
(U.S.C.. title 12, sec. 61). Is amended to read as follows:
Sec. 5144. In all elections of directors, each shareholder shall have
the right to vote the number of shares owned by him for as many
persons
as there are directors to be elected, or to cumulate such shares
and give
one candidate as many votes as the number of directors multiplied
by
the number of his shares shall equal, or to distribute them on the same
principle among as many candidates as he shall decide; and in deciding
all other questions at meetings of shareholders, each shareholder
be entitled to one vote on each share of stock held by him; except (1)shall
that
shares of its own stock held by a National bank as sole trustee shall
be voted, and shares of its own stock held by a National bank and onenot
or
more persons as trustees may be voted by such other person or PEIrSonS,
as trustees, in the same manner as if he or they were the sole trustee. and
(2) shares controlled by any holding company affiliate of a National bank
shall not be voted unless such holding company affiliate shall have first
obtained a voting permit as hereinafter provided, which permit is
in force
at the time such shares are voted. Shareholders may vote by
proxies
duly authorized in writing; but no officer, clerk, teller or bookkeeper
of
such bank shall act as proxy; and no shareholder whose liability is past
due and unpaid shall be allowed to vote.




• 1295

This section with respect to stock in the bank held by it as sole trustee
deprives said stock of voting power and makes similar provision with respect
to stock of a holding company affiliate which for some reason or other may
not have obtained a voting permit. As a result it is found that in certain
instances the balance of the outstanding stock still possessed of voting power
is less than a majority of the stock issued and outstanding. The National
Bank Act provides that in certain types of resolutions by the stockholders
a two-thirds majority is necessary to sustain such resolution and in one Cage a
simple majority is required. As a result, there would appear to be doubt
whether or not the stockholders in possession of voting ri_ht in a bank.
where more than a majority of the bank stock is deprived of a vote under
this section can legally adopt a resolution of the type required by statute
to be adopted by a majority or two-thirds vote. In order to clarify this
situation, it is suggested that Section 5144 of the Revised Statutes as
amended by Section 19 of the Banking Act of 1933 be further amended by
providing that wherever the law requires that action by the shareholders
shall be by either the vote of shareholders owning a majority of the stock
or by vote of the shareholders owning two-thirds of the stock of the association that in determining said majority or said two-thirds, said majority
or said two-thirds shall be computed upon the basis of the outstanding
stock possessed of and entitled to a vote at the time the action is taken.
The sections of the National Bank Act which will be affected by such
amendment are as follows: Section 2 of the Act of May 1 1886. U.S.C.,
title 12. sec. 30, relative to change of name or location of the bank; Section
5142 of the Revised Statutes as amended, U.S.C., title 12, sec. 58. with
respect to increase of capital: Section 5220, Revised Statutes, U.S.C., title
12. sec. 181. with respect to vote to go into liquidation; Section 5143,
Revised Statutes, U.S.C., title 12, sec. 59, with respect to reduction of
capital; Section 3, Act of June 30 1876. as amended Aug. 3 1892. and
March 2 1897, U.S.C., title 12, sec. 197. with respect to appointment of
shareholders' agent in liquidation, and Section 5149, Revised Statutes.
U.S.C., title 12. sec. 75. with respect to fixing of date for election of
directors.
15. R.S. 5154, U.S.C., title 12, sec. 35. provides for conversion of State
banks into National banks. There has been an increased number of State
banks which have applied to the Comptroller of the Currency for conversion.
In examining these banks it is found that they possess some assets which
it is not legal for National banks to acquire and hold. To require a State
bank to eliminate these assets places a burden on it which it may be unable
to meet and many times results in its inability to join the National system.
It is recommended that Congress amend this statute to provide that such
banks on conversion may continue to carry such non-conforming assets as
may be determined, in the discretion of the Comptroller of the Currency.
to be acceptable because of their intrinsic value.

From the report we also quote:
National Banks in the Trust Field.
The administration of trusts in the National banking system during
the fiscal year ended June 30 1933 reached the greatest proportions, both
in number of trusts under administration and in the volume of individual
trust assets confided to their care than at any time since the first permit
to exercise trust powers was issued on Feb. 25 1915. under Section 11 (k)
of the Federal Reserve Act.
One thousand eight hundred and forty-five National banks had authority
to exercise trust powers on June 30 1933, with combined capital of $1,285.423.255 and banking resources of $18,320,841,438, which represented
37.6% of the number. 84.7% of the capital and 87.8% of theresources of
all banks in the National banking system.
Of the number authorized to exercise trust powers, 1,478 banks had
active trust departments and were administering 100.356 individual trusts
with assets aggregating $6,311.657,753, and in addition were administering
10,784 corporate trusts and acting as trustees for outstanding note and bond
issues amounting to $10,418,426,937. Compared with 1932. these figures
represent a net increase of 6.852. or 6.2%, in the number of trusts being
administered; an increase of $1,669,592,382. or 26.5%, in the volume of
individual trust assets; and an increase of $921,180,328, or 8.8%, in the
volume of bond issues outstanding under which National banks had been
named to act as trustees.
A segregation of the number of fiduciary accounts in National banks
revealed that 54,095. or 48.7%. were those created under private or living
trust agreements: 46,271. or 41.6%, were trusts being administered under
the jurisdiction of the courts, and the remaining 10,784, or 9.7%, were
trusteeships under corporate bond or note issue indentures. Private trust
assets comprised $5,029,485.372, or 79.7%, of the total assets under administration, while the remaining $1,282,172,381. or 20.3%, belonged to court
trusts. Invested trust funds aggregated $5,831,556.503. of which bonds
constituted 43.17%; real estate mortgages, 12.16%; stocks, 33.15%; and
miscellaneous assets, 11.52%.
The substantial development of trust activities in these institutions is
further emphasized by comparing the record in 1933 with that of 1928.
which reflects an increase during the five-year period of 47.364, or 42.6%.
in the number of trusts being administered; an increase of $3,014.347,634,
or 47.8%, in the volume of individual trust assets under administration,
and an increase of $2,440,038.083, or 23.4%, in the volume of bond and
note issues outstanding for which National banks are acting as trustees.
The extent to which National banks have been named to act by the
insuring public as administrator of policy proceeds is revealed by the
fact that 206 banks were acting as trustees under 617 insurance trust
agreements involving $32.719,615 in proceeds from insurance policies.
while 637 National banks had been named trustees under 16,358 insurance
trust agreements not yet matured or operative, supported by insurance
policies with a face value aggregating $696,758,940.
Three hundred and ninety-eight of the banks spent $245.623 during the
year for trust advertising. 39 banks employed full-time trust solicitors, and
94 banks utilized the services of part-time trust solicitors.
National bank branches numbering 215 on June 30 1933 were actively
engaged in administering 13,271 trusts, with individual trust assets aggregating $801,044,099, and were acting as trustees for outstanding bond and
note issues amounting to $410,703,238.
National Bank Failures.
During the year ended Oct. 31 1933 receivers were appointed for 348
National banks, Of such total appointments. 29 were made for the purpose of completing unfinished business or enforcing stock assessments.
the collection of which was necessary under contracts to succeeding institutions which purchased the assets of the banks under terms by which
depositors were paid in full. Of the remaining 319 appointments for actual
failures, none was restored to solvency during the current year, leaving the
entire 319 to be liquidated by receivers. However, nine insolvent National
banks for which receivers were.appointed in 1932 were terminated during
the current year other than through liquidation, eight thereof having been
restored to solvency and one eliminated as an insolvent National bank
through revocation of the receiver's commission as of the date of issuance.
These figures for the year 1933 may be compared with 333 receivers' appointments during the previous year for actual failures, 16 of which were

1296

restored to solvency, with the appointment of receivers for 47 banks to
complete unfinished business or to enforce stock assessments.
In a further analysis of the 348 receivers' appointments for the past year,
exclusive of the 29 appointments for purpose of completing unfinished business or enforcing stock assessments referred to in the preceding paragraph,
It is found that 105 appointments were for actual suspensions due to closing
prior to March 6. the date of the bank holiday proclamation, three for banks
suspended under the bank holiday not subsequently licensed and for which
conservators had not been appointed, 208 for banks suspended under the
bank holiday and placed in charge of conservators prior to receivers' appointments, and three for banks licensed to reopen prior to March 16 but
subsequently found insolvent. The capitalization of the 348 banks for
which receivers were appointed during the past year was $76,107,500.
as compared with the capitalizaiton of the 380 banks for which receivers
were appointed during the previous year of $50,505,585.
During the year ended Oct. 31 1933 total costs incurred in the liquidation of insolvent National banks as reported by receivers amounted to
but 3.2% of total collections from all sources, including offsets allowed for
a like period. This percentage of costs to collections for the year 1933 may
be compared with percentages of 3 and 3.2 for the years 1931 and 1932.
respectively. Total collections from all sources, including offsets allowed,
as reported by receivers for the year ended Oct. 31 1933, amounted to
$356,678,150. while similar collections for the years 1931 and 1932 aggregated $132,998,054 and $263,482.046, respectively.
The early liquidation of insolvent National banks has been greatly
facilltated through the granting of loans to receivers of such banks by the
Reconstruction Finance Corporation for the purpose of paying dividends.
Loans so obtained by receivers of insolvent National banks during the year
ended Oct. 31 1933, as indicated by the records of this office, amounted to
$30,204,332. Total loans obtained by receivers from the Reconstruction
Finance Corporation from the date of the organization thereof to Oct. 31
1933, as indicated by the records of this office, amounted to $53,888,798.
An indication of the general distribution of and benefit derived from these
loans by the depositors of insolvent National banks is evident from the
fact that such loans both hastened and increased the payments of dividends
to depositors of 559 insolvent National banks located in 38 of the 48 States
and in the District of Columbia.
Some further facilitation in the liquidation of insolvent National banks
has been secured during the past year through the consummation of approximately eight sales of assets at par value and interest by receivers of insolvent National banks to other going institutions under the so-called Spokane plan. These sales of assets are found to have resulted in the immediate
distribution of dividends by receivers in the aggregate amount of approximately $14,650,000.
Relative to the length of time required to complete liquidation of insolvent National banks, a compilation has been made covering those
Insolvent National banks finally closed during the year ended Oct. 31 1933,
as well as for those receiverships finally closed during the 12-year period
Nov. 1 1921 to Oct. 31 1933. From data compiled it has been found that
insolvent National banks finally closed during the year ended Oct. 311933,
exclusive of those banks which were restored to solvency and those for which
receivers were appointed for the purpose of completing unfinished business
or enforcing stock assessments only, required an average period of five
years and ton months for complete liquidation, with a minimum period of
two years and two months. With reference to insolvent National banks
the affairs of which were finally closed during the 12-year period Nov. 1
1921 to Oct. 311933, excluding those banks restored to solvency and banks
for which receivers were appointed for the purpose of completing unfinished business or enforcing stock assessments only, the average period of
liquidation is found to have been four years and ten months.
Receiverships, Year Ended Oct. 311933.
Of the 348 National banks for which receivers were appointed during
the past year. none was restored to solvency, leaving the entire number
of 348 banks to be administered by receivers. Of the 348 National banks
so administered by receivers. 29 appointments were made for the purpose
of completing unfinished business or enforcing stock assessments, leaving
319 banks to be actually liquidated by receivers. The capital of the 348
insolvent National banks for which receivers were appointed was $76,107.500. The capital of the 29 banks for which receivers were appointed to
complete unfinished business or to enforce stock assessments was $3,735.000
and the capital of the remaining 319 banks to be actually liquidated by
receivers was $72,372,500.
Stock assessments levied by the Comptroller of the Currency to Oct. 31
1933 against shareholders of the 348 National banks administered by
receivers, with capital of $76,107,500, amounted to $56,900,000, while
the assets of such banks, including assets acquired subsequent to their
failure, totaled $1,035,468,388. Collections from these assets, including
offsets allowed and collections from stock assessments as reported by
receivers to Oct. 31 1933, amounted to 23.31% of such assets and stock
assessments. These collections and the disposition thereof were as follows:
Liquidation Statement, 348 Administered Receirerships, Year Ended Oct. 31 1933.
Collections—
8249,570.600
Collections from assets, including offsets allowed
5,033,454
Collections from stock assessments
28,830,179
Unpaid balance Reconstruction Finance Corporation loans
5283,234,233
Total
Disposition of Collections—
139,105,344
Dividends paid by recsivers to unsecured creditors
693,790
Dividends paid by receivers to secured creditors
39,784,893
Distributions by conservators
Payments to secured ,k preferred creditors other than through dividends 57,663,102
25,592,724
Offsets allowed and settled
1,354,320
Disbursements for the protection of assets
21532,923
Payment of receivers' salaries, lexal and other expenses
643,255
Payment of conservators' salaries, legal and other expenses
15,883,882
Cash balance in hands of Comptroller and receivers
$283,234,233
In addition to the above record, it is found that total secured and unsecured claims proved as reported by receivers to Oct. 31 1933. in connection with these banks, aggregated $174,509.139. The outstanding circulation of the 348 receiverships at date of failure was $37,711,736, secured by
United States bonds on deposit with the Treasurer of the United States of
the par value of $39,120,550. Total deposits of these banks at date of
failure amounted to $796,750,893. while borrowed money, consisting of
bills payable, rediscounts, &c., totaled $83,496,229. . . .
Total

Organkaiion and Liquidation of National Banks.
At the close of the current year. Oct. 31 1933, there were 5,799 National
banking associations in existence, including inactive banks which had not
gone into voluntary liquidation, suspended banks, and banks in charge of
conservators for which no receivers had been appointed. Such institutions
are technically in existence. This represents a net loss since Oct. 31 1932
of 305 banks, or approximately 5%, and S58,772.000 in the authorized
common capital stock. However, at the close of the period under discussion there was outstanding $80.072,400 of preferred capital stock issued




Feb. 24 1934

Financial Chronicle

under the provisions of the Act of March 9 1933. During the current years
53 banks increased their common capital by the aggregate sum of $8,980,850.
Of this number, three banks effected the increase by stock dividends, the
amount of such increase being $260,000. During this period, by the issuing
of preferred stock, 166 banks increased their capitalization by $48,739,100.
Covering the entire period of National banking operations, up to and
including Oct. 311933. there have been authorized to begin business 13,820
National banking associations. Of these. 5,625 have voluntarily closed.
some of which discontinued business; others merged with other banks,
both State and National; and some consolidated with other National banking associations under authority of the Act of Nov. 7 1918. Exclusive of
banks which failed but which were subsequently restored to solvency
the loss to the system throughout this entire period by the liquidation of
banks through receiverships has been 2,396, the number of these receiverships being a fraction less than 17.34% of the total number of banks
organized.
During the year ended Oct. 31 1933 there were 155 National banks, with
total capitalization of $26,805,000, which went into voluntary liquidation.
Of this number six, with capital of $1,025.000 and resources of $2,941,307.
discontinued business; 93, with capital of $18,775,000, were acquired by
other National banks; and 56, with capital of 37.005,000 and resources of
$55,312,342, entered the State banking systems. The latter group included three banks of,$300,000 or over, with aggregate capital of $2,950,000
and assets of $20.207,377. . • •
During the year ended Oct. 31 1933 there were received 509 applications
to organize National banks and to convert State banks into National banking associations, with proposed capital stock of $147,666,000. Of these
applications, 238 were approved, with proposed capital stock of $111,099,000; 44 were rejected, with proposed capital stock of $4,270,000; and
the remainder were abandoned or no action was taken thereon. Of the
150 banks chartered, 50 were chartered to take over 52 banks which were
in weakened condition, while 71 others were organized to acquire the assets
and assume the liabilities of 75 suspended National banks and seven State
banks in charge of conservators or for which receivers were appointed.
Only 29 of this total number of applications were approved fpr the primary
organization of new National banking associations.
In this same year 176 National banking associations, with common
capital of $43,414,500. were authorized to begin business, 20 of which
were located in the New England States, 22 in the Eastern States, 53 in
the Southern States, 65 in the Middle Western States, nine in the Western
States and seven in the Pacific States. During this perfod 69 of the banks
chartered had in addition to their common capitalization preferred capital
stock aggregating $31,347,000. The greatest activity, as indicated by the
number of National banks organized, was evidenced in the following States:
Illinois, 23; Texas, 22; Pennsylvania, 13; Michigan, 11; Maine, 10; Ohio. 9:
Iowa, 8; Indiana, 6; Louisiana, 6; Maryland, 6; Oklahoma, 6; North Carolina, 5; Vermont. 4. In other States the number ranged from 1 to 3 banks.
It further appears that of the total number of charters issued within the
year ended Oct. 311933, 12, with authorized common capital of $3,010,000
and preferred capital of $300,000 and resources aggregating approximately
$40,933,287, were the result of conversions of State banks; 14. with common
capital of $5,605,000 and preferred capital of $4,050,000, were reorganizations of 16 State banks, and 121, with common capital of $21,639,500 and
preferred capital of $12,652,000, were primary organizations for the purpose
of acquiring the business of 127 liquidating or suspended National banks and
seven State banks, and 29, with common capital of $13,160,000 and preferred capital of $14,345,000, did not acquire the business of any other
banking institution. The business of 56 State banks, with capital of
$4,195,000 and assets aggregating approximately $77,672,105, was purchased by National banks.
During the year ended Oct. 31 1933, 20 National banking associations
were consolidated into 10, under authority of the Act of Nov. 7 1918, the
capital of the consolidated banks being $3,340,000. In each instance
there was a reduction in capital, the net remit by reason of these consolidations being a reduction in capital stock of 12,765,000. During the same
period there were six consolidations under the Act of Feb. 25 1927, involving the merger of six State banks with National banks, through which
additional assets of approximately 3204.437.091 were brought Into the
National system.
Branches.
On Feb. 25 1927, the date of the passage of the so-called McFadden bill,
there were in existence in the National system 372 branches, as compared
with a total of 1.211 branches in existence on Oct. 311933.
During the intervening period 1,538 branches have been added to the
system, of which 721 were de novo branches, 307 were branches of State
banks which converted into National associations, and 510 were brought
into the National system through consolidations of State with National
banks, while 699 branches were relinquished, of which latter number 500
went out of the system through the liquidation of the parent institutions,
and the remainder, 199, were discontinued through consolidations and for
various other reasons. The net result of these operations was a loss for the
National system of 103 branches for the period under discussion.
In the year ended Oct. 31 1933 a not loss of 103 branches in existence
were
was recorded, 164 de novo branches being established, 58 of which
local.
authorized under the Banking Act of 1933 in places other than
through
There were no branches brought into the system during this period
banks with
the conversion of State banks or the consolidation of State
National banks.
National system.
Two hundred sixty-seven branches were lost to the
action ef the
241 through liquidation of the parent bank and 26 through
directors and shareholders.
the National
in
There follows a summary of branch banking operations
system during the period discussed in the foregoing:
BRANCHES ON FEB. 25
TABLE SHOWING NUMBER AND KIND OF ACQUISITION OF ADDI1927 AND NUMBER AND MANNER OF
YEARS TO CLOSE
TIONAL BRANCHES OF NATIONAL BANKS BY
OF OCT. 31 1933.
Authorized.
Under Act Feb. 25
1927, a, Amenaed.
Other
Contersions Consolidations Local
Total.
than
City
of State
of Slate
City
Local
Branches.
Banks.
Banks.
Branches.
On Feb. 25 1927
Period ended Oct. 31 1927_
Year ended—
Oct. 31 1928
Oct. 31 1929
Oet. 31 1930
Oct. 31 1931
Oct. 31 1932
O.31 1933
Total

104

207
127

372
527

8
2

82
82
5
95
182

103
89
86
50
102
106

58

173
173
92
145
264
184

472

510

870

58

1.910

185
298

1297

Financial Chronicle

Volume 138
Closed.

In
Voluntary
Lapsed or
Involuntary
Liquidations. Liquidations. Consolidated. Existence.
On Feb. 25 1927
Period ended Oct. 31 1927_
Year endedOct. 31 1928
Oct. 31 1929
Oct. 31 1930
Oct. 31 1931
Oct. 31 1932
Oct. 31 1933
Total

372
899

15
17
241
273

20
86
32
2
87

60
18
35
30
30
26

992
1.061
1,086
1,184
1,314
1,211

227

199

1.211

Investments of National Banks.
The tables following disclose a summary of the investments of National
banks in United States Government and other bonds and securities held
June 30 1931, 1932 and 1933, and a detailed classification by reserve cities
and States of bonds and securities other than United States Government
owned on June 30 1933.
June 30 1933. June 30 1932. June 30 1931.
Number of banks

04.902

6,150

6,805

Domestic securitiesState, county and municipal bonds
1,067,797.000 1,031,407.000 997,220,000
530,634,000 652,665,000 719,688,000
Railroad bonds
Other public service corporation bonds_ 533,260,000 684.465,000 828,198,000
All other bonds
529,172,000 686,308,000 886,614,000
98,315,000
90,417,000
Stock of Federal Reserve Bank
83,603,000
110,432,000 114,669,000 119,160,000
Stock of other corporations
92,690,000 118,240,000 145,837,000
Collateral trust & other corporation notes
86.291,000 112,487,001',
Municipal warrants
94,681,000
34,576,000
34,602,000
All other, Incl. claims, judgments, &c
31,738,000
Foreign securitiesGovernment bonds
149,389.000 168,155,000 230,979,000
Other foreign securities, including bonds
of municipalities, &c
116,655,000 176,793,000 245,469,000

Total bonds & securities of all PiaSis.1 7 371 631 non 7.198.652.000 7.674.837.000
a Licensed banks: i.e.. those operating on an unrestricted basis.
Earnings and Dividends of National Banks.
A comparative statement of the earnings and dividends o! National
banks for the fiscal years ended June 30 1932 and 1933, and statements
showing the capital, surplus and earnings, &c., of these associations in
reserve cities and States and Federal Reserve districts June 30 1933 follow. (Similar tables for the six month periods ended Dec. 31 1932 and
June 30 1933 are published in the appendix of this !pamphlet' report.)
EARNINGS AND DIVIDENDS OF NATIONAL BANKS FOR THE F1SCA I,
YEARS ENDED JUNE 30 1932 AND 1933.
June 30 1933. June 30 1932.
(6,150 banks) (4,902 banks)
Capital, par value:
Common
Preferred

01,463,412,000 01,568,983,000
053,793,000

Total
Surplus

01,517,205,000 01,568,983,000
0940,698,000 01,259,425,000

Total capital and surplus

02,457,803,000 02,828,408,000

Gross earnings:
Interest and discount on loans
Int.& divs. on bonds,stocks & other eecurlties- --Interest on balances with other banks
,Collection charges, commissions, fees, &c
Foreign department (except interest on foreign
loans, investments and bank balances)
Trust department
Service charges on deposit accounts
Other current earnings
Total
Expenses:
Salaries And wages
Interest on deposits of other banks
Interest on other demand deposits
Interest on other time deposits
Interest and discount on borrowed money
Taxes
Other expenses
Total current expenses
Withdrawals from reserves for expenses of previous
periods accrued and unpald_b
Grand total
Net earnings
Recoveries, profit:. on securities, &e.:
On loans
On bonds,stocks and other securities
All other
Total
Total net earnings, recoveries, &c
Losses and depreciation:
On loans
On bonds, stocks and other securities
On banking house, furniture and fixtures
Other losses and depreciation

473,696,000
283,568.000
10,657,000
14,099,000

615,357,000
298,841,000
14,645,000
12,699,000

12,538,000
21,461.000
14,006,000
52,337,000

18,172,000
22.366,000
83,C92,000

882,362.000 1,065,172,000
204,513,000
18.521,000
46,715,000
189,047,000
17,181,000
41,020,C00
120,714,000

239.200,000
25,820,000
66.772,000
230,439,000
21,504,000
48,080,000
139,783,000

637,151,000

771.598,000

28,259,000
666,010,000
216,352,000

771,598,000
293,574,000

17,129,000
51,515,000
9,915,000

16,753,000
34,390,000
16.051,000

78,559.000

67,194.000

294,911,000

360,768,000

231,420,000
236,557,000
15,916,C00
22,803,000

259,478,000
201,848,000
17,693,000
21,529,000

Total current period
Withdrawals from reserve for depreciation of
previous periods on real estate.b

506,696,000

500,548,000

Grand total
Net addition to profits
Dividends
Ratios:
Dividends to common capital_a
Dividends to common capital and surPlus-d
Net addition to profits to common capital_ a
Net addition to profits to common capital and
surplus_ a

513,295,000
c218,384,000
99,096,000

500,548,000
c139,780,000
169,155,000

6.77%
4.12%
c14.92%

10.78%
5.98%
c8.91%

CO.08%

c4.94%

6,599,000

a Capital and surplus as of end of fiscal year. b For classificat on of amounts
see abstract of earnings and dividends for six months ended Dec. 311932. published
In appendix of [pamphlet] report. c Deficit.
Note -Figures reported include the returns of all active banks Dec. 31 and
June 30. but the number of banks shown in the heading represents the number
active on June 30.




1918 _ 2,129,283 1.840.4873,969,770 10,135,842 44,350 33,964
1910. 3,176,314 1,875,609 5,051,923 11,010,206 27,819 3.5,440
1920. 2,269,575 1,916,890 4,186,465 13,611,416 61,790 31,284
1921_ 2,019,497 2,005,584 4,025,081 12,004,516 76,179 76,210
1922 _ 1,285,459 2,277,866 4,563,325 11,248,214 33,444 135,208
1923. 2,693,846 2,375,857 5,069,703 11,817,671 21,890120,438
1924. 2,481,778 2,660,550 5,142,328 11,978,728 24,642 102,814
1925, 2,536,767 3,193,677 5,730,444 12,674,067 25,301 95,552
1926. 2,469,268 3,372,985 5,842,253 13,417,674 23.783 93,605
1927. 2,596,178 3,797,040 6,393,218 13,955,696 27,579 86,512
1928, 2,891,167 4,256,281 7,147,448 15,144,995 29,191 92,106
1929. 2.803,8603,852.675 6,656.535 14,801,130 43.458 86,815
1930. 2,753,941 4,134,230 6,888,171 14,887,76.2 61,371 103,817
1931. 3,256,268 4,418,569 7,674,837 13,177,485 119,294 186,864
1932. 3,352,666 3,843,986 7,196,652 10,281,676 201,848 259,478
1033 40318763.340.055 7.371.631 8.116,972 236.557 231,420

1.12
.55
1.48
1.89
.73
.43
.48
.44
.41
.43
.41
.65
.89
1.55
2.80
3.21

0.34
.32
.23
.63
1.20
1.02
.86
.75
.70
.62
.61
.59
.70
1.42
2.52
2.85

NUMBER OF NATIONAL BANKS, CAPITAL, SURPLUS, NET ADDITION
TO PROFITS DIVIDENDS AND RATIOS, YEARS ENDED JUNE
30 1914 TO 1933.
[In thousands of dollars.)
Ratios.
Net Addition to
Net
Yr. No.
Profits.
DirtAddition DiaEnd. of Common
deeds
deeds. Dirtto
June B'nks Capital. Surplus.
To
to
dends to
Profits.
30To
Common
Common Common
Capttal. Capital Common Capital
and
Capital.
and
Surplus.
Surplus

•
•
44V1•112g822,E22nz
n-A2P...8.7,2.
,
1 at
- - -

Total
3,340,055,000 3,843,986,000 4,418,569,000
United States Government securities._ _ 4,031.576,0003,352,666,000 3,256,268,000

NATIONAL BANK INVESTMENTS IN UNITED STATES GOVERNMENT
SECURITIES AND OTHER BONDS AND SECURITIES. &C., LOANS
AND DISCOUNTS (INCLUDING REDISCOUNTS), AND LOSSES
CHARGED OFF ON ACCOUNT OF BONDS AND SECURITIES OWNED
AND LOANS AND DISCOUNTS, YEARS ENDED JUNE 30 1918 TO
1933 INCLUSIVE.
(fn thousands of dollars.]
Percent of bosses
Charged off
Losses
Charged Losses On Bonds On Aca.
United
Other
Total Loans ana Off on Charged
and
Loans &
States
Year
Bonds Discounts Bonds Off on
Bonds
Secs. Discounts
End. Governand Se- and Be- (including and Sc- Loans to Total to Total
men(
June
Rediscurdles & DU- Bonds & Loans &
curdles
30- &curdles curdles
counts). Owned counts. &curs.
DUOwned. Owned. Owned.
Owned. counts.

19147,4531.063,978 714,117 149,270120,947
19157,5601,068.577 726,620 127,095 113,707
1916 7,571 1,066,209 731,820 157,544 114,725
19177,589 1,081,670 765,918 194,321 125,538
19187.6911.098,264 816,801 212,332 129,778
19197,7621,115.507 869.457 240,366135,588
19208,0191,221.453 984.977 282,0831147,793
19218,1471.273,237 1,026,270 216,106 158,168
19228,246 1,307,199 1.049.228 183.670165,884
19238,2381,328,791 1,070.600 203,488 179,176
19248,08 1,334,011 1,080,578 195.706163,683
1025 8,070 1,369,385 1,118,95 223,935165.033
19267,978 1,412,872 1,198.899 249,167 173,753
1927i7.796 1,474,173 1,256,94 252,319 180,753
19237,691 1,593,8561,419,695270,158205.358
1929 7,536 1,627,375 1,479,05 301,804222,672
1930 7,252 1,743,974 1,591,339 246,261 237,029
1931 6,805 1,687,663 1,493.876 52,541,
19326,1501,568,983 1,259,425 al39,780 169,155
10334 902 1_463.412 940.598 0218.394 99,096

Per Cent.Per Cent.Per Cent.
8.39
6.80
14.03
6.33
11.89
7.08
14.78
8.76
6.38
10.52
17.96
8.79
11.09
19.33
6.78
12.11
21.55
6.83
12.78
6.70
23.09
6.88
16.97
9.40
14.05
7.79
7.04
8.48
7.47
15.31
8.11
14.67
6.78
16.35
9.00
6.63
9.0
6.65
17.63
9.24
17.12
6.62
8.96
6.81
16.95
18.55
9.72
7.17
7.11
14.12
7.38
3.11
1.65
6.64
a4.94
08.91
5.98
4.12 014.92
09.08

a Deficit.
Money in the United States.
Statements showing the stock of money in the United States in the
years ended June 30 1914 to 1933, and the imports and exports of merchandise, gold and silver in the calendar years 1914 to 1932 and the nine
months ended Sept. 30 1933 follow:
STOCK OF MONEY IN THE UNITED STATES, IN TELE TREASURY, IN
REPORTING BANKS,IN FEDERAL RESERVE BANKS, AND IN GENERAL CIRCULATION, YEARS ENDED JUNE 30 1914 TO 1933.

Year Ended June 30-

1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933

Year Ended June 30--

Coin and Other
Coin and Other
Coin and
Other Money Money in 7'reasitry Money in Reporting Banks.(b)
as Assets.(a)
in the
United
Per Cent
Per
Cent.
Amount.
Amount.
States.
Millions
3,797.8
4,050.8
4,541.7
5,678.8
6,906.2
7,688.4
8,158.5
8,174.5
8,276.1
8,702.8
8,846.5
8,299.4
8,429.0
8,667.3
8,118.1
8,538.8
8,306.6
9,079.6
9.004.4
10,078.4

Minions
338.4
348.2
299.1
269.7
363.5
585.1
490.7
463.6
406.1
386.5
359.4
363.9
353.2
350.9
351.3
373.1
247.2
254.9
278.2
314.5

Held by or for
Federal Reserve
Banks and Agents.
Amount.

Per Cent.

Amount.

9.45
13.06
23.64
29.84
28.96
26.97
34.25
41.16
40.14
41.12
37.63
37.85
39.98
36.59
40.04
42.58
44.08
33.66
40.12

Millions
1,829.4
1,871.7
2,177.1
2,579.1
3,599.0
3,895.3
4,420.3
3,984.7
3,649.2
4,046.2
3,948.5
3,876.9
3,910.1
3,866.2
3,930.1
3,947.2
3,668.2
3,956.5
4,921.0
5.070.8

Millions
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933

383.0
593.3
1,342.7
2,061.0
2,226.7
2,200.2
2,799.9
3,406.8
3,493.0
3,637.8
3,120.3
3,190.5
3,465.1
2,970.2
3,419.4
3,537.3
4,002.7
3,031.1
4,043.2

Millions
42.92
1,630.0
8.91
1,447.9
35.74
8.60
1,472.2
32.41
6.59
26.19
4.75
1,487.3
12.78
882.7
5.27
981.3
12.78
7.61
1,047.3
12.84
6.01
926.3
11.83
5.67
9.84
814.0
4.91
8.93
777.1
4.44
10.18
4.06
900.8
11.30
938.3
4.38
975.2
11.57
4.19
985.1
11.36
4.05
866.5
10.67
4.33
799.1
9.38
4.37
10.28
853.8
2.98
865.5
9.53
2.81
774.1
8.60
3.09
6.45
649.9
3.12
In General Circulation, Exclusive
of Amounts Held by Reporting Banks, Federal Reserve
Banks and Treasury.
Per Cent. Per Capita
48.17
46.21
.47.94
45.42
52.11
50.67
54.18
48.75
44.09
46.49
44.64
46.69
46.39
44.61
48.41
46.23
44.16
43.58
54.65
50.31

18.46
18.56
21.24
24.74
33.97
36.67
41.50
36.71
33.18
36.20
34.69
33.58
33.35
32.57
32.72
32.47
29.76
31.87
39.41
40.32

a Public money in National bank depositories to the credit of the Treasurer of
the United States not included.
b Money In banks of island possessions not included.
Note.-Population estimated at 113,818,432 in 1924; 115,469,095 in 1925; 117,227,000 in 1926; 118,719,000 in 1927; 120,104,000 in 1928; 121,546,198 in 1929:
123,250,000 in 1930; 124,135,800 in 1931; 124,881,806 in 1932, and 125,753,206
in 1933.

1298

Financial Chronicle

Feb. 24 1934

Liability Provisions of Federal Securities Act of 1933 Compared with Those of British "Companies
Act, 1929"—Merchants' Association of New York Points Out That American Act Is Far
More Drastic Than British.
In support of its efforts to obtain the early amendment of the Securities Act of 1933, in order to promote the sale of
legitimate securities sufficient to meet the needs of business, the Merchant's Association of New York has obtained a comparison of the Federal Securities Act with the British Companies Act of 1929. A comparison showing paragraph by paragraph the differences between the liabilities sections of the two Acts was made available on Feb. 18 by the Association, which
points out that it is disclosed that the American Mt is far more drastic in its provisions than is its British equivalent.
"Just one difference" between the two Acts is cited by the Merchants' Association as follows:
Here is one difference between the Federal Securities Act and the British Companies Act: Under Section 11 of the
Securities Act, directors, officers
and underwriters, in case a registration statement omits to state a material fact, are liable to suit by any person who may
acquire the security at any time
within ten years. The British Act imposes no liability on directors or others responsible for a prospectus if the director proves that
he was not cognizant
of any matter not disclosed, if he proves that the non-compliance arose from an honest mistake, or if the non-compliance arose in
respect to matters held
by the court to be immaterial. In many other respects the American Act is more severe than the British Act.

The comparison follows:
Securities Act of 1933.
1. Under Section 12 (1) any person who sells a security in respect of
which a registration statement is required to be filed, but where it has
not been filed, or any person who sells a registered security without accompanying or preceding the sale by a prospectus complying with the
requirements of the Act, is liable to the person purchasing the security
from him in a suit "to recover the compensation paid for the security
with interest thereon,less the amount of any income received thereon, upon
the tender of such security, or for damages if he no longer owns the security."
Limitation of recovery of damages to the price at which the security was
offered to the public is not contained in this section. It would appear that
all the purchaser would have to show would be that the security was not
registered in accordance with the law and that he purchased it, or that he
did not receive a prospectus, or that the prospectus which he received did
not comply with the requirements of the Act. He could then tender the security back and recover the price he paid. If he no longer owns the security he is entitled to prove his damages. There is no defense given to the
seller except the Statute of Limitations (Section 13) which requires that an
action to enforce liability be brought within two years after the violation
on which it is based and within 10 years after the security was offered
bona fide to the public.
In case of a wilful violation of the provisions above referred to, the
teller is liable to prosecution and to a maximum fine of $5,000 or to imprisonment for not more than five years or both.

Companies Act, 1929.
1 (a). The British Act requires that before a prospectus asking for subscription to shares can be issued, a copy must be filed with the Registrar
of Companies. There is no provision in the Act for civil liability for the
Issuance of a prospectus without having filed a copy with the Registrar
of Companies. The Act simply provides that in such event every person
who is knowingly a party to the issue of the prospectus shall be liable
to a fine not exceeding £5 for every day from the date of the issue of the
prospectus until a copy thereof is so delivered. Burden of proving the
issue of the prospectus, failure to file a copy, and knowledge of the defendant rests on the Crown.
1 (b). The British Act also requires that a copy of the prospectus as filed
must be issued with any application for shares of the company. No civil
liability is imposed for the issuance of an application for shares not aocompanied by such prospectus, but if any person acts in contravention of
this requirement he is liable to a fine not exceeding £500.

2. Under Section 11. in case any part of the registration statement
omits to state a material fact which the Act or regulations require to be
stated, the directors, officers and underwriters responsible for the registration statement are liable to suit by any person who may acquire tne
security at any time within 10 years after is has been bona fide offered to
the public, for the consideration paid for the security upon the tender of
the security or for damages if the person suing no longer owns the security.
The director, officer or underwriter who is sued must sustain the burden of
proof that after reasonable investigation he had reasonable ground to
believe and did believe that there was no omission to state a material fact
required to be stated. The amount recoverable by any plaintiff under this
provision cannot exceed the price at which the security was offered to the
public, but conceivably successive holders of the same security might sue
and recover, and the aggregate amount of the recoveries might greatly
exceed the price at which the security involved in she suit was originally
offered to toe public.
In case any person wilfully omits to state any material fact required to
be stated in a registration statement he is liable to prosecution and to a
maximum fine of $5,000, or to imprisonment for not more than five years,
or both.

2. The British Act imposes no civil liability on directors or persons responsible for a prospectus by reason of failure to include therein the matters
specified in the Act. The Act provides, however, that in case an application for shares is issued with a prospectus which does not comply with the
requirements of the Act, any person so acting in contravention of the Act
shall be liable to a fine not exceeding £500. But no director or other person
responsible for the prospectus can incur any liability for such fine if
(a) as regards any matter not disclosed he proves that he was not cognizant thereof; or
(b) he proves that the non-compliance or contravention arose from an
honest mistake of fact on his part; or
(c) the non-compliance or contravention was in respect of matters
which in the opinion of the court dealing with the case were immaterial
or were otherwise such as ought, in the opinion of that court, having regard
to all the circumstances of the case, reasonably to be excused.
Furthermore, if the alleged liability is based on the failure Co include in the
prospectus a statement with respect to an interest of a director or promoter
in property proposed to be acquired by the issuer, or consideration paid to
a director or promoter to induce him to become a director, or for services
in connection with the promotion of the issuer, no director or other person
can incur any liability in respect of the failure unless the Crown sustains
the burden of proof that the person sought to be held liable had knowledge
of the matters not disclosed.

3. Under Section 11, in case any part of the registration statement,
not purporting to be made on the authority of an expert or of a public
official document or statement, contains an untrue statement of a material
fact or omits to state material facts necessary to make the statements
therein not misleading, any person acquiring the security, whether at the
time of the original issuance thereof or any time within the period of 10
years after the security was bona fide offered to the public, is given the
right to sue directors, officers and underwriters responsible for the registration statement to recover the consideration paid for the security upon
the tender thereof or damages. In order to escape liability the person
sued must sustain the burden of proof that he had after reasonable investigation reasonable ground to believe and did believe that the statements
therein were true and that there was no omission to state a material fact
necessary to make the statements therein not misleading. The amount
which may be recoverable by the plaintiff under the above described provisions cannot exceed the price at which the security was offered to the
public, but as explained above successive purchasers of the same security
may sue and the aggregate amount recovered may exceed the price at which
the security was offered to the public.
In order to avoid the above liability every person liable on the registration statement must make his own investigation, and the extent of the
investigation which he is required to make is indefinite. Sub-section 0 of
Section 11 provides that in determining what constitutes reasonable investigation and reasonable grounds for belief the standard of reasonableness shall be that required of a person occupying a fiduciary relationship.
This standard is indefinite but would seem to require a complete investigation of the facts by every person liable on the registration statement.
If any person wilfully makes an untrue statement of a material fact in
a registration statement or omits to state any material fact necessary to
make the statements therein not misleading, he shall upon conviction be
fined not more than $5,000 or imprisoned for not more than five years, or
both.

3. Under the British Act where a prospectus invites a person to subscribe
for shares in a company every director, promoter and other person who authorized the issue of the prospectus is liable to pay compensation to all
persons who subscribed for any shares or debentures on the faith of the
prospectus for the loss or damage they may have sustained by reason of
any untrue statement therein, unless it is proved that as regards any
untrue statement not purporting to be made on the authority of an expert
or of a public official document or statement, the defendant had reasonable
ground to believe and did believe that the statement was true. The British
Act does not contain any specific provision creating a liability for an omission
which makes misleading any fact stated, but it has in certain cases been
held by the British courts that a half truth is equivalent to an untrue
statement. The British Act does not require every person liable on the
prospectus to be able to sustain the burden of proof that he personally
made an investigation of all the statements in the prospectus.

4. Under Section 11 in case any part of a registration statement purporting to be made on the authority of an expert or purporting to be a copy
,of or extract from a report or valuation of an expert contains an untrue
statement of a material fact or omits to state a material fact necessary to
make the statements therein not misleading, any person acquiring the security on the original issuance thereof or within 10 years thereafter may
sue very director and every officer of the issuer liable on the registration
statement and every underwriter with respect to the issuance, to recover
the consideration paid for the security upon the tender thereof, or damages.
In order to avoid liability the defendant must be able to sustain the burden
of proof that he had reasonable grounds to believe and did believe that the
statements in question were true and that there was no omission to state
a material fact required to be stated therein or necessary to make the




4. Under the British Act no director or other persons responsible for a
prospectus can be held responsible as regards any untrue statement purporting to be a statement by an expert or official person or contained in
what purports to be a copy of or extract from a report or valuation of an
expert, or a copy of or extract from a public official document, if he can
prove that the statement was fairly represented or that the report, valuation or official document was fairly and correctly copied. The director or
other person responsible for the prospectus may be bald liable even though
he sustained the above mentioned burden of proof if the expert was not
competent to make the statement, report or valuation, but the plaintiff
has the burden of proving that the defendant had no reasonable ground
to believe that the person making the statement was not competent to
make it.

Volume

138

Financial Chronicle

1299

statements therein not misleading, and also that such part of the registration statement fairly represented the statement of the expert or was a fair
copy of or extract from the report or valuation of the expert. The same
liability exists with respect to any part of the registration statement purporting to be a statement made by an official person or a copy of or extract
from a public official document.
The amount recovered under the above provision by any plaintiff cannot exceed the price at which the security was offered to the public, but
successive holders of the security might sue and recover in the aggregate
an amount in excess of the original offering price.
The penalty for a wilful untrue statement or omission is a fine of not
more than $5,000, or imprisonment for not more than five years, or both.
5. A person seeking to assert any of the liabilities described in paragraphs 2, 3 and 4 above need not prove that he purchased the security involved in reliance on the registration statement or on a prospectus in which
an untrue or misleading statement was included or in which a material fact
required to be stated was omitted. A person may, therefore, recover
against those made liable by the provisions of the Act even though he had
no knowledge of the contents of the registration statement at the time he
made his purchase and did not in any way rely thereon.

5. The only persons who can recover under the British Act on account of
an untrue statement in a prospectus are the persons who subscribed for any
shares or debentures on the faith of the prospectus. Reliance on a prospectus
Is, therefore, a material fact and must be proved by ,,he person attempting
to assert the liability.

6. The liabilities prescribed by the various provisions of Section 11 run
In favor not only of the original subscriber to the security but also in favor
of all subsequent purchasers of the security during the period of 10 years
after the security was bona fide offered to the public. The only limitation
on this is that suit must be brought by the plaintiff within two years after
the discovery of the untrue statement or the omission, or after such discovery should have been made by the exercise of reasonable diligence.

6. The British Act does not give any right of recovery on account of untrue statements in a prospectus excepting to those who subscribe for the
securities on the faith of the prospectus. No right of recovery is given to
persons purchasing in the secondary market.

7. The amount which may be recoverable from the persons made liable on
the registration statement under Section 11 on account of untrue statements
of material facts or omissions to state material facts required to be stated or
necessary to make statements not misleading is not limited to the loss or
damage caused by the untruth, omission or misstatement. The plaintiff is
given a right to recover damages but the law does not specify that damages
are limited to such as may have been sustained by reason of the untruth,
omission or misstatement complained of. Furthermore, the law gives to
the plaintiff the alternative of an action for rescission, entitling him to
recover the amount of the consideration which he paid for the security.
The latter remedy is, however, very different from the usual right of rescission which is aimed at putting the parties back in status quo. The
reason for this is that the original subscribers for the security will have
paid their money to the corporation and not to the directors and officers
of the corporation, or to the underwriters (excepting that the underwriters
may have received a small fraction of it as commission for services). Purchasers in the secondary market will have paid their money to sellers who
were not in any way connected with the persons liable on the registration
statement. The result is that the persons liable on the registration statement will be required to pay back money which they never received and
the aggregate amount which they will have to pay back may be greatly
in excess of the amount received by the corporation when the security was
originally issued. On the other hand, the plaintiff is entitled to recover
an amount in excess of his actual loss by reason of the untruth, omission
or misstatement complained of.
8. Section 11 of the Act makes every underwriter of an issue equally
responsible with every director and officer of the issuer for all of the securities issued. The Act defines an underwriter broadly enough to include
every underwriter no matter how small his participation in the entire issue
may be. Accordingly, an underwriter with a small participation will be
subject to liability for the full amount of the issue and his liability, as above
explained, would run to subsequent purchasers as well as the persons who
purchased on the original issue of the security.
9. Under Section 11 every accountant, engineer or appraiser, or any
person whose profession gives authority to a statement made by him, who
has with his consent been named as having prepared or certified any part
of the registration statement or any report or valuation used in connection
with it is subject to the same liability as a director or underwriter with
respect to the statements in the registration statement, report or valuation
which purport to have been prepared or certified by him.

7. The persons entitled to sue under the British Act can only recover
"compensation" for the "loss or damage they may have sustained by
reason of any untrue statement" in the prospectus or in any report or
memorandum appearing on the face thereof. The British Act does not
give to the plaintiff any right to tender the security back to the directors
or other persons responsible for the prospectus and to recover from them
the amount paid therefor. If any right of rescission exists in a case, therefore, it must be founded on the principles of the common law.

10. Under Section 12 (2) any person who sells a security which is not
exempt in inter-state conunerce or by the use of the mails by means of a
prospectus or oral communication which includes an untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements in the light of the circumstances under which they were made not
misleading (the purchaser not knowing of such untruth or omission), and
who shall not sustain the burden of proof that he did not know and in the
exercise of reasonable care could not have known ofsuch untruth or omission,
is made liable to the person purchasing such security from him for the consideration paid for such security with interest thereon less the amount of any
income received upon the tender of the security or for damages if he no
longer owns the security.

8. Under the British Act an underwriter would not be liable excepting on
a prospectus issued over his name and in such cases liability would be
limited to persons subscribing for shares or debentures on the faith of his
prospectus.

9. The British Act does not embody any liability upon engineers, valuers,
accountants or other experts whose profession gives authority to statements
made by them for statements, reports, &c., furnished by them and used in
connection with the prospectus. Any liability would, therefore, have to be
based on the principles of the common law.

10. The British Act creates no such liability as that created by Section
12 (2) of the Securities Act of 1933. Any purchaser of a security claiming
any misrepresentation by the seller, except in those instances connected
with original distribution, is left to his common law remedies

The move on the part of the Merchants' Association toward amendment of the Federal Securities Act was referred
to:in our issue of Feb. 17, page 1162.

Indications of Business Activity -1
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, Feb. 23 1934.
General trade slowed up somewhat during the week, but
it exceeded that of a year ago. It was checked to some
extent by the recent storm, which tied up transportation.
Other factors which militated against trade during the week
were the shorter week because of the holiday yesterday
(Washington's Birthday) and the commencement of the
demobilization of the CWA forces. On the other hand,
industrial activity showed a further expansion. Steel
operations averaged better than 43% of capacity, or the
highest rate reached since last August. Electric output
continued to increase and lumber production and shipments
were at the highest level of the year. New orders for
lumber, however, lagged. Bituminous coal production increased owing to a better demand as a result of the recent
cold weather.




The automobile industry continues very active, owing to
the unexpectedly large volume of orders for new cars. Retail
business was somewhat slower than a week ago. Sales of
men's clothing, however, were of good volume and those of
work clothing reached the best total in nearly four years.
Automobile sales made the best showing. They were 50%
larger than last year with orders for new oars piling up.
Most of the demand was for low-priced models. In many
districts there was a shortage of second hand automobiles
as a result of the recent heavy buying. Wholesale business
was also smaller than last week owing to the shorter week and
the recent heavy snow which kept many buyers away from
the market. Orders in February thus far exceed those of
the same time last year by 20 to 50% with dry goods, shoes,
wearing apparel and jewelry accounting for most of the
gain. Orders for hardware were also considerably larger
than those of February last year.

1300

Financial Chronicle

Feb. 24 1934
The upward trend of commodities was continued although Loadings of Revenue Freight Continue Higher Than
considerable irregularity was noted. Livestock, hog prodfor Same Period in 1933.
The first 16 major railroads to report for the week ended
ucts, butter and coffee were stronger while flour and sugar
were weaker. Coffee futures were higher with a better Feb. 17 1934 loaded a total of 258,049 cars of revenue
demand for spot. Butter showed eome early weakness, but freight on their own lines, compared with 247,038 cars in
recovered later. Eggs dropped to new lows for the year. the preceding week and 225,515 cars in the seven days
Sugar declined during the week with raws down to the basis ended Feb. 18 1933. All of these carriers continued to show
of 3.30c. owing to the delay in legislation putting into effect gains over the totals for the same period last year. Comthe President's program and the lateness of the date for parative statistics follow:
starting grinding in Cuba. Hides were quiet and easier. REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS.
(Number of Cars.)
Cotton declined despite the news from Washington that the
President approved the principle of the Bankhead bill and
Loaded on Lines.
ReceivedfroinConnections
reports that sales to Russia may approximate 500,000 to
Weeks EndedFeb. 17 Feb. 10 Feb. 18 Feb. 17 Feb. 10 Feb. 18
1934. 1934. 1933. 1934. 1934. 1933.
750,000 bales in the near future. There was considerable
liquidation of March in advance of notice day on Friday. Atchison Topeka & Santa Fe Ry_ 17,812 16,329 16,741 4,128 4,220 3,721
Chesapeake & Ohio Ry
21,453 21,298 20,750 6,836 8,708 8,110
Cotton goods were in good demand and firm. Wool was in Chicago
Burlington & Quincy RR. 14,335 14,343 12,858 5,738 5,489 .5,594
Chic. Milw.St. Paul & Pacific Ry 17,059 16,631 15,807 5,033 8,018 8,305
rather small demand but prices were steady. Silver was Chicago
& North Western Ry- 14,240 13,879 12,340 9,118 8,549 8,182
active and higher although some reaction occurred late in Gulf Coast Lines and subsidiaries_ 2,923 2,886 2,067 1,350 1,177 721
International Gt. Northern RR
2,891 2,900 2,675 1,914 1,850 1,258
the week. Wheat fluctuated within narrow limits but Missouri-Kansas-Texas RR
4,292 4,488 4,322 2,587 2,565 1,965
Missouri
13,258
Pacific
13,343 12,204 7,488 7,155 6,254
RR
showed a decline for the week owing to reports of rains and New York Central Lines
42,814 39,707 35,585 82,434 58,359 53,728
Chicago & St. Louis Ry_
3,845 3.587 3,524 8,895 8,111 7,917
snows in the Southwest which were badly needed. Selling N.Y.
Norfolk Jr Western Ry
18,538 18,197 18,393 3,930 3,584 3,212
was not heavy but there was no aggressive buying. Corn, Pennsylvania RR. System
56,239 52,133 47,763 33,877 30,331 29,417
Pere Marquette Ry
5,133 4,633 4,110
a
x
x
oats and rye followed wheat downward.
Southern Pacific System
18,785 17,898 13,990
x
x
x
4,854 4,810 4,588 7.782 7,033 7,168
Temperatures rose considerably over the week end, Wabash Ry
9•9191
IIII Ild0 9d7 n•le 990 K1 K 191 one tan loo 1d1 R19
bringing temporary relief from the severe cold snap which the
xNet available.
country has been experiencing for the past month or so.
TOTAL LOADINGS AND RECEIPTS FROM CONNECTIONS.
On Monday afternoon, however, a wet snow and sleet storm
(Number of Cars.)
started, coating everything with snow and ice. The storm
Weeks EndedFeb. 17
Feb. 10
Feb. 18
continued all through the night, with lowering temperatures
1934.
1934.
1933.
and increasing winds, which turned into the worst blizzard Chicago Rock Island & Pacific Ry
19,829
19,049
18,890
the city has had since the blizzard of 1888. Nine inches of Illinois Central System
28,031
25,310
26,068
St. Louis-San Francisco Ry
12,285
12,079
11,272
snow fell overnight and as the mercury dropped the heavily
Total
58,145
57,198
55,472
coated wires snapped in many places leaving them isolated
The American Railway Association, Feb. 16, in reviewing
from the city. All kinds of transportation were tied up
completely or greatly delayed, the Long Island RR. not the week of Feb. 10 stated:
Loading of revenue freight for the week ended on Feb. 10 totaled 572,504
giving any service for a full day on most of its lines and
cars, an increase of 8.406 cars above the preceding week, 67,841 cars above
remaining away behind schedules even on the following day. the
same week in 1933. and 10,969 cars above the corresponding week
Most all other railroads in the New England section were in 1932.
Miscellaneous freight loading for the week of Feb. 10 totaled 194,710
from one to six hours late, but got quickly back on schedules.
cars, an increase of 5,040 cars above the preceding week, 51,892 cars above
Most of the rest of the Eastern part of the country had the the
corresponding week in 1933, and 9,713 cars above the corresponding week
same experience, reporting blizzards that smashed all the In 1932.
Loading
of merchandise less than carload lot freight totaled 160,296
records of their local weather bureaus, paralyzing traffic
cars, a decrease of 1,941 cars below the preceding week, but 6,187 cars
and transportation and putting business at a standstill. above
the corresponding week In 1933. It was, however, a decrease of
Many lives were lost in the storm and many ships were in 26,273 cars below the same week in 1932.
Grain
and grain products loading for the week totaled 31,259 cars, a
distress all along the coast.
decrease of 101 cars below the preceding week, but 9,726 cars above the
On Thursday the mercury rose and rain fell in New York corresponding week in 1933. It was, however. 764 cars
below the same
helping the great army of workers attempting to clear week in 1932. In the western districts alone, grain and grain products
loading
for
the
totaled
week
20,892 cars, an Increase of
ended Feb. 10
away the snow, but the thermometer dropped again con8,186 cars above the same week in 1933.
tinuously all day Friday. To-day it was 22 to 36 degrees
Forest products loading totaled 21,331 cars, an increase of 1,158 cars
here and fair. The forecast was for much colder with above the preceding week, 8,987 cars above the same week in 1933, and
cars above the same week in 1932.
strong northwest winds. Overnight at Boston it w h.' 32 to 1,584
Ore loading amounted to 2,596 cars, an increase of 125 cars above the
44 degrees; Baltimore, 28 to 44; Pittsburgh, Pa., 12 to 40; preceding week, and 499 cars above the corresponding week in 1933 but
Portland, Me., 32 to 36; Chicago, 8 to 24; Cincinnati, 14 257 cars below the corresponding week in 1932.
loading amounted to 138,466 cars, an increase of 4,866 cars above
to 36; Cleveland, 10 to 30; Detroit, 4 to 24; Charleston, theCoal
preceding week but a decrease of 10,192 cars below the corresponding
42 to 62; Milwaukee, 4 to 20; Dallas, 34 to 44; Savannah, week in 1933. It was, however, an increase of 27,550 cars above the same
40 to 62; Kansas City, Mo., 22 to 32; Springfiled, Mo., 22 week in 1932.
Coke loading amounted to 10,117 cars, an increase of 1,155 cars above
to 32; St. Louis, 22 to 34; Oklahoma City, 24 to 36; Denver, the preceding week, 2,747 cars above the same week In 1933 and 4,441 cars
14 to 24; Salt Lake City, 40 to 52; Los Angeles, 54 to 60; above the same week in 1932.
Live stock loading amounted to 13,729 cars, a decrease of 1,896 cars
San Francisco, 52 to 60; Seattle, 38 to 54; Montreal, 14 to below
the preceding week, 2,005 cars below the same week in 1933, and
28, and Winnipeg, 6 below zero to 30 below zero.
5.025 cars below the same week in 1932. In the Western districts alone,
Moody's Daily Index of Staple Commodity Prices
Develops Sagging Tendency.
Prime commodity prices developed a sagging tendency
during the week under review, Moody's Daily Index of
Staple Commodity Prices declining to 139.1 from 140.4,
after eight consecutive weeks of advance. The Index registered declines on the first four days of the shortened week,
but recovered slightly after the holiday on Thursday.
Nine of the 15 commodities comprising the Index showed
losses for the week, wheat, cotton and hogs being the most
important, followed by hides, sugar, rubber, silk, corn and
coffee. An advance of 50 cents a ton in steel scrap in both
Chicago and Pittsburgh was the only really constructive
development, the other advances, in cocoa and silver, being
only fractional. Copper,lead, and wool tops were unchanged
for the third week in succession.
The moveme4 of the Index number during the week, with
comparisons is as follows:
Fri.
Feb. 16
Sat. Feb. 17
Mon. Feb. 19
Tues. Feb, 20
Wed. Feb. 21
Thurs. Feb. 22-Holiday.
Feb. 23
Fri.




140.4
139.7
139.5
138.9
138.8

2 weeks ago, Feb. 9
Month ago. Jan. 23
Feb. 23
Year ago,
1933 High, July 18
Low, Feb. 4
1934 High, Feb. 16
Low. Jan. 2
139.1

139.6
133.5
80.3
148.9
78.7
140.4
126.0

loading of live stock for the week ended Feb. 10 totaled 10.556 cars, a
decrease of 1,435 cars below the same week in 1933.
All districts reported increases for the week of Feb. 10 compared with the
corresponding week in 1933. The Eastern, Pocahontas, Southern and
Northwestern districts reported increases compared with the corresponding
week in 1932, but the Allegheny, Centralwestern and Southwestern
districts reported small reductions.
Loading of revenue freight in 1934 compared with the two previous
years follows:

Four weeks in January
Week ended Feb. 3
Week ended Feb. 10
Total

1934.

1933.

2.177,582
584,098
572,504

1,924,208
48(1,059
504,883

2,288.771
573,928
581,535

3,314,164

2.914.930

3,402.229

1932.

In the following table we undertake to show also the
loadings for the separate roads and systems for the week
ended Feb. 10 1934. During this period only 27 roads
showed decreases as compared with the corresponding week
last year. Among the larger carriers showing increases as
compared with the same week in 1933 were the Pennsylvania System, the Baltimore & Ohio RR., the New York
Central RR., the Chesapeake & Ohio Ry., the Southern
Ry. System, the Louisville & Nashville RR., the Chicago
Milwaukee St. Paul & Pacific Ry., the Norfolk & Western
Ry., the Reading Co., the Chicago Burlington & Quincy
RR., the Missouri Pacific RR., and the Chicago & North
Western Ry.

1301

Financial Chronicle

Volume 138

REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED FEB. 10.
Total Revenue
Freight Loaded,

Railroads

Group BDelaware & Hudson
Delaware Lackawanna & Weft.
Erie
Lehigh & Hudson River
Lehigh & New England
Lehigh Valley
Montour
New York Central
New York Ontario & Western_
Fittsburgh & Shawmut
Pittsburgh Shawmut&Northern
Total
Group CAnn Arbor
Chicago Ind.dr Louisville
Cleve. CM. Chic. &St. Louis
Central Indiana
Detroit dt Mackiruto
Detroit & Toledo Shore Line
Detroit Toledo & Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia__ _
Wabash
Wheeling & Lake Erie
Total
Grand total Eastern District._
Allegheny District.
Akron Canton & Youngstown
Baltimore & Ohio
Bessemer & Lake Erie
Buffalo Creek de Gauley
Central RR.of New Jersey__ _ _
Cornwall
Cumberland & Pennsylvania_ _
Ligonier Valley
Long Island
c Penn-Read Seashore Lines
-Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
Total

1932.

1934.

Railroads.

1933.

1,841
3,262
7,419
798
2,962
10,135
501

1,440
2,743
6,629
537
2,268
9,333
494

2,223
3,140
8.014
669
2,962
10,838
535

230
3,998
9,049
2,176
2,483
10,302
944

306
3,406
7,522
1,588
1,770
9,218
802

26,918

23,444

28,381

29,182

24,612

5,456
7,533
11,900
141
1,734
7,779
1,751
19.202
1,676
432
377

4,720
9,020
10,069
152
1,672
8,282
1,780
17,406
2,005
347
176

4,600
7,863
10,356
141
1,233
6,966
1,824
18,710
1,931
353
343

6,079
5,828
12,886
1,617
1,043
6,116
30
26,426
1.922
18
224

4,711
4,215
11,542
1,420
743
5,139
21
21,546
1,686
21
182

57,981

55,629

54,320

62,189

51.226

357
1,281
8,261
16
125
247
992
2,835
4,673
3,270
3,344
3,442
2.711
1,087
4,707
2,860

547
1,485
7,989
58
231
230
1,154
2,614
6,082
3,849
4,218
3,984
3,122
809
5,230
2,530

1,009
1,601
11,826
58
92
3,243
1,278
6,867
9,201
140
8,111
4,684
4,622
650
7,033
2,576

813
1,470
10,230
39
54
2,381
ggg
5,227
6,992
100
6,426
3,642
3,608
464
5,941
1,541

40,188

44,112

62,991

131.551

119,261

126,813

154,362

396
26,001
1,381
286
4,963
6
406
199
674
998
52.133
14,401
5,629
103
3,121

233
21,811
725
222
5,645
2
255
211
817
903
46,722
10,627
3,019
75
2,464

b
28,379
864
141
5.8C2
41
344
230
1,123
c
57,819
11,732
4,775
58
3,010

736
12,460
975
6
10,233
46
16
14
2.816
1,466
30,310
13,089
1,108
5,Iia
-

2,iiii-

110.697

93.731

112,118

78,400

64,971

20,584
15,580
688
4.033

18,139
15,239
872
3,373

6,706
3,584
1,076
630

5,510
3,061
872
453

pao,
WaWaGAW.2Pr

Total

1933.

..wwwww*.omo-im.-40
7:4 2-co;-.7a-col.14-cret."o

1934.
Eastern District.
Group ABangor & Aroostook
Boston & Albany
Boston & Maine
Bentral Vermont
%daine Central
New York, N.H.& Hartford....
Rutland

Total Loads Received
front Connections.

Group BAlabama Tenn. & Northern__
Atlantic Birmingham & Coast__
Atl.& W.P.-West.RR.of Ala
Central of Georgia
Columbus & Greenville
Florida East Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Macon Dublin dr Savannah
Mississippi Central
Mobile & Ohio
Nashville Chatt.& St. Louis_._
Tennessee Central
Total

Total Loads Received
from Connerifcm.

Total Revenue
Frertght Loaded.
1934.

1933.

1932.

1934.

182
696
675
3,555
240
1,030
906
332
1,192
18.275
19,357
99
139
1,700
2,896
362

110
523
505
2,701
177
1,028
703
204
1,002
18,802
17,925
118
101
1,530
2,202
316

279
628
630
3,191
284
1,142.
773
296
1,305
17,912
15,701
113
141
1,839
2,629
420

263
767
• 1,061
3,517
226
683
1,328
558
715
8,331
3,822
510
236
1,334
2,227
630

1933.
158
467
767
1,908
186
539
1.052
259
545
7.307
2,936
393
184
1,090
1,725
711

51,636

47,987

47,283

26.208

20,227

Grand total Southern District

99,200

82,307

86.706

56,189

43,898

Northwestern District.
Belt By. of Chicago
Chicago &North Western
Chicago Great Western
Chia. Milw. St. Paul & Pacific.
Chic. St. Paul Minn.& OmahaDuluth Missabe & Northern_
Duluth South Shore dr Atlantic_
Elgin Joliet & Eastern
Ft Dodge Des M.& Southern.
Great Northern
Green Bay & Western
Lake Superior dr Ishpeming_ _
Minneapolis & St. Louis
Minn. St. Paul & 5.8. Marie
Northern Pacisic
Spokane & International
Spokane Portland dr Seattle_

734
13,879
2,290
16,631
3,635
555
483
3,617
. 253
7,833
527
285
1,661
4,074
7,309
82
1,026

519
10,041
1,733
13,506
3,124
405
323
2,535
205
6,417
433
132
1,264
3,351
6,018
79
619

984
13,912
2.301
16,948
3,368
477
464
3,145
253
7,361
530
b
1,755
4,513
7,696
b
775

1,405
8,549
2,015
8,016
2,642
148
309
3,841
123
1,654
387
84
1,227
1,984
1.823
178
643

1,029
5,827
1,662
4,617
1,313
66
286
3,137
123
1,053
204
33
1,062
1,139
1,450
116
411

64.854

50,704

64,482

3,028

23.528

Central Western District.
16,329
16,353
2,451
2,235
49,608 Atch. Top.& Santa Fe SystemAlton
177
194
125,446 Bingham & Garfield
14,342
12,998
Chicago Burlington & Quincy
1,665
1,436
Chicago & Illinois Midland_._ _
10,160
9,259
Chicago Rock Island dr Pacific_
3,006
3,013
674 Chicago & Eastern Illinois
1,239
1,070
Colorado & Southern
2,596
10,6472,126
696 Denver & Rio Grande Western_
181
617
Denver
&
Salt
Lake
5
986
1,003
1936
1667
8,452 Fort Worth et Denver City-. ,.
Illinoisinal
Term
35
503
310
14 Northwestern Pacific
101
56
8 Peoria de Pekin Union
12,459
9,847
Southern
Sou
Pacific
ic)
(Pacif--•
2,239
232
225
.,.,1
1,331 St. Joseph & Grand Island_ _
232
t
•
'''
26,304 Toledo Peoriadr Wesern
9,068
11,373
11,316 Union Pacific System
296
1,115
526 Utah
945
917
Western Pacislc

19,705
2,932
140
15,278
b
12,401
2.528
1,031
2,315
392
1,451
b
462
80
11,986
270
308
12,090
811
1.015

4,220
1,588
21
5,489
556
5,797
1,795
699
1,511
10
901
991
318
63
3,083
245
858
5,250
5
1,011

3,307
1,494
44
4,507
777
5,300
1,595
821
1.214
5
716
799
181
35
2.610
235
579
4.559
9
898

85,195

34,401

29,685

Total

Total

80,661

74,427

Southwestern District.
2,839
3,205
160
119
124
Alton & Southern
283
256
148
125
150
Burlington-Rock Island
147
21,296
156
222
207
nos
Fort Smith & Western
18,197
856
1,177
a2,903
1,902
2,886
Gulf Coast Lines
1,396
1,850
950
1,580
2,532
2.900
International-Great Northern
738
3,598
867
147
135
163
Kansas Oklahoma & Gulf
1,138
1.199
1,618
1,555
1,493
Kansas City Southern
37,623
40,885
11,976
487
44.041
9.956 Louisiana & Arkansas
697
1,010
1,310
1,290
Total
119
295
b
86
171
Louisiana Arkansas & Texas._.
479
627
186
382
Southern District.
408
Litchfield dr Madison
149
250
749
675
Group A516
Midland Valley
216
7,275
4,905
9,162
281
56
3,591 Missouri & North Arkansas_ _
50
Atlantic Coast Line
80
1,974
898
2,565
1,523
1.277
1,216
4,738
3,847
Clistchfield
4,468
n, Missouri-Kansas-Texas Lines
5,691
293
1,054
360
7,155
14,012
13,092
Charleston & Western Carolina
13,343
7
nr, Missouri Pacific
82
133
140
288
18
Durham Be Southern
42
49
50
"•' Natchez dr Southern
39
131
111
• 50
101
Gainesville & Midland
84
107
105
6
_1 Quanah Acme & Pacific
1,355
1,108
2,803
1,184
Norfolk Southern
3,196
7,915
6,868
7,390
.,
6
,
1," St. Louis-San Francisco
452
479
1,151
959
Piedmont & Northern
1,834
2,486
1.627
1,924
"
" St. Louis Southwestern
253
302
1,461
Richmond Frederick. & Potom.
2,748
2,113
5,791
2,923 Texas dr New Orleans
4,131
5,437
6,250
7,499
Seaboard Air Line
2,471
3,798
3,590
3,261
2,805 Texas & Pacific
3,134
3,920
1 /,227
20,052
Southern System
1
12.762
2,48
42
2,060
1,465
9,829. Terminal RR. Assn.01St. Louis
1,385
1,454
145
Winston-Salem Southbound
135
649
48
25
30
23
621
_ Weatherford Min•Wells& N.W.
34,320
40,564
39,423
Total
29,981
27.131
33,540
48,598
23.671
43,348
48,500
Total
a Estimated. b Not available, c Pennsylvania-Reading seashore L nes include the
lines of the West Jersey & Seashore RR., formerly part of
new
consolidated
formerly
part
Pennsylvania RR..and Atlantic City RR.,
of Reading Co.; 1932 figures
included in Pennsylvania System and Reading Co- *Previous week's figures.
7D,
Cn1.3
C.
aaaae
-40,00C42.-.7,0,

Pocahontas District.
Chesapeake dr Ohio
Norfolk & Western
Norfolk & Portsmouth Belt Line
Virginian

Business Conditions During January and First Half of
February, According to Conference of Statisticians
in Industry-Continued Improvement ReportedIndustrial Production Higher.
Business conditions showed continued improvement in
January, and gains in production and basic distributions
were extended into the first half of February, according to
the current monthly report of the Conference of Statisticians
in Industry of the National Industrial Conference Board,
issued Feb. 19. Advances in production in some major
industries were greater than seasonally normal at this time
of the year, and declines in others were less than expected.
Primary distribution of commodities showed a measurable
gain of more than seasonal proportions, while retail trade
declined in January under the December level by an amount
normal for the two months. The report continues:
Industrial production as a whole continued to advance in January, and
In February to date. Automobile output was stepped up sharply. Steel
and iron production also continued their December gains. Bituminous coal
output showed more than seasonal improvement. Electric power production declined slightly in January, but turned upward in the first half of
February. Building and engineering construction declined measurably in
January as compared with December, but the decline was not so much as
is normally seasonal for the two months, and the value of awards was more
than double the total of a year ago.
In detail, production of passenger cars and trucks during January in the
United States and Canada is estimated at 155,000 units, an advance of




78% over the December total and 16% larger than the January 1933, total.,
Volume production of new models was, nevertheless, slow in getting under
way during January due to manufacturing difficulties. Reports for the
first two weeks of February show a considerable additional increaseinoutput.
Steel production continued to increase in January and the first half of
February, after moving up sharply in December. An increase of 1.6%
over the December level brought average daily output to 73,959 gross tons,
which was 86.7% greater than in January last year.
Steel operations continued to improve in the first half of February.
Capacity in use during the week ended Feb. 17 is estimated at 39.9% of the
total available. Expansion of output in the industry has been almost
entirely due to increased production of automobiles and to increased
demand for tinplate.
The production of bituminous coal in January estimated at 32,935,000
net tons was 11.3% more than in December, and 21.7% more than in January 1933. The increase compensates for the slightly more than seasonal
decline in December.
Anthracite shipments advanced sharply in January and continued to
mount in February because of the unusually cold weather. January shipments were 5,189,480 net tons, compared with 4,011,992 tons in December
and 3,348.950,Sons in January 1933.
Electric power production in January, averaged 1,612 million kilowatt
hours per week compared with 1,615 million kilowatt hours in December.
The decline was counter to the seasonal movement which normally is an
increase of more than 1%. Increased output of electric power was registered,
however, in the first two weeks of February.
Building and engineering construction declined seasonally in January
after continuing gains from July to December. Total contract awards of
$187,464,000 were reported by the F. W. Dodge Corporation for 37 States
east of the Rocky Mountains. There was a decline of 10.5% in awards in
January as compared with December but the month's total was 125%
above that of a year ago.

1302

Financial Chronicle

The decline in construction was due chiefly to a reduction in public
awards. Total awards for public works and utilities amounting to $113,737,000 in January fell from a total of $133,270,000 in December but were,
I nevertheless, 165% larger than in January 1933.
Non-residential construction moved up 17.1% in January to a total value
of 358.616,000 while residential construction fell 26.8% to a total value of
$15,110,000.
General distribution and trade were better than seasonally normal in
January. Freight shipments increased over the December average by an
amount more than usual in recent years. Retail trade declined a normal
seasonal amount during the month.
Rail shipments of all classes of commodities, averaging 546,600 cars per
week in January, were 6.0% greater than in December;the seasonal increase
Is 4.3%. Total carloadings were 14.4% above the average of a year ago.
Increases in coal, grain, livestock, merchandise and miscellaneous commodity shipments were recorded during the month. Merchandise and
miscellaneous shipments. averaging 340,000 cars per week, were 2.6%
greater in January than in December; the seasonal advance in recent years
averaged 1.5%.
Department store sales declined seasonally in dollar value of turnover in
January as compared with December. A decline of 47% in sales resulted in
a dollar turnover per day of trading which was 14% above the level of a
year ago. Prices of department store items fell off 0.2% in January but
were roughly 20% greater than a year ago. The volume of turnover of
department store items during the month was, accordingly, smaller than in
January 1933.
Prices of commodities at wholesale in January advanced over the December average level. The weakening of prices in general in the latter month
was halted in the last week by a sharp rebound in prices of farm products.
This upturn was continued into January and passed on to other commodities. Foods and chemicals and drugs advanced appreciably. Hides
and leather products,textile products, metals, and building materials showed
moderate price gains. Housefurnishing goods were virtually unchanged in
January as compared with December. The general advance was extended
Into the first two weeks of February.
The cost of living turned upward in January after declining for two
preceding months. The advance of 0.3% over December brought the
index of living costs in the wage-earner's budget to a level 5.2% above a
year ago and 8.5% above the low of April. Advances in food prices and in
sundry items were large enough to offset declines in rents, clothing, and
coal.
Commercial failures increased seasonally in number and in liabilities. An
Increase of 20.5% in number of failures in January as compared with
December and an advance of 21% in liabilities left the insolvency record
for the month at a level about 50% below what it was a year ago. Declines
were recorded in the first two weeks of February.

Third Consecutive Increase in Wholesale Commodity
Prices Reported by National Fertilizer Association
During Week Ended Feb. 17.
Wholesale commodity prices during the week ended
Feb. 17 showed the third consecutive gain, according to the
index of the National Fertilizer Association. This index,
when computed for the week, gained eight points, advancing
from 70.7 to 71.5. (The three-year average 1926-1928
equals 100.) During the preceding week the index advanced
five points, while two weeks ago it advanced seven points.
There has therefore been a gain of 20 points during the last
three weeks. A month ago the index stood at 69.5 and a
year ago at 56.0. At the beginning of 1934 the index stood
at 68.6. Under date of Feb. 19 the Association also reported:
During the latest week 11 groups advanced while three declined. The
declining groups showed only slight losses. These groups were fuel, metals
and house-furnishing goods. The advancing groups were foods, textiles,
grains, feeds and livestock, automobiles, building materials, fats and oils,
chemicals and drugs, fertilizer materials, mixed fertilizer, agricultural
Implements, and miscellaneous commodities.
The prices for 45 Individual commodities advanced and 13 declined during the latest week. A week ago there were 32 advances and 17 declines.
Two weeks ago there were 42 advances and nine declines. Farm products
that advanced during the latest week were cotton, hogs, lambs, eggs,
potatoes, beans, apples and wheat at Kansas City. Other commodities
that advanced included cotton yarns, silk, lard, butter, vegetable oils,
pork, heavy melting steel, silver, coffee, tankage, rubber and leather.
Listed among the declining commodities were raw sugar, oats, wheat at
Chicago and Minneapolis, timothy hay, copper and gasoline.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
PRICES (1926-1928=100)
Per Cent
Each Group
Bears to the
Total Index.
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
ins n

Group.
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 fertilizer
Agricultural implements
Altar/lona envntidond

Latest
Week
Feb. 17
1934.

Preceding
Week.

Month
Ago.

Year
Ago.

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

71.6
68.2
54.4
72.1
69.0
84.9
79.1
78.5
85.2
53.4
93.0
67.4
74.5
92.3

70.8
67.7
51.8
69.4
68.2
84.9
78.9
79.0
85.2
45.7
93.0
66.8
74.5
92.3

71 A

707

no A

54.3
52.9
37.7
41.8
59.5
85.3
71.4
66.8
76.6
40.6
87.3
60.6
65.0
91.7
Son

Advanced for Seventh Consecutive
Week of Feb. 10, According to Index
of United States Department of Labor.
"The continued rise in the market prices of farm products
and foods was largely responsible for the seventh consecutive
weekly advance in wholesale commodity prices," Isador
Lubin, Commissioner of Labor Statistics of the U. S. Department of Labor, announced Feb. 15. The current increase placed the index number 73.3% of the 1926 average,

as compared with 72.8% for the week ended Feb. 3, showing
a rise of 3. of 1% in the general level." Mr. Lubin further
said:
The present wholesale price level is 2.2% over the high point reached
during last year, when the index stood at 71.7% for the week ended Nov.
18. and the rise since the first week of January is 3.5%. Prices are nearly
22% above the corresponding week of a year ago, when the general index
stood at 60.2. As compared with the low point of the year 1933 (week
ending March 4), when the index was 59.6, the current index is up by 23%
and places the general average 23% under the average for the year 1929.
when the index number registered 95.3.
Of the 10 major groups of items covered by the Bureau, five showed an
increase, three a decrease, and two groups, fuel and lighting materials and
hides and leather products, showed no change. The three groups which
registered only fractional declines were building materials, metals and metal
products and textile products.

The Department of Labor had the following to say as to
the index:
Due to a continued advance in the price of butter and cheese and increases
for flour, fruits and vegetables, dressed poultry, Pork, coffee, lard and raw
sugar, the food group showed the greatest rise of the 10 major groups of
commodities covered and advanced 1.7%. Eggs, cocoa, beans. cocoanut
oil, rye flour, cornmeal and edible tallow were among the important items
In this group showing price declines.
The farm products group advanced by 1.5%. Although grains receded
slightly in price, livestock, with a rise of more than 6% in the week, was
mainly responsible for the increase. Other items contributing to the
advance were cotton, hops, lemons, oranges, tobacco and potatoes. Present prices of livestock have risen 12% during the last three weeks and are •
now more than 16% over prices of last December.
Fractional increases for mixed fertilizer offset declining prices in cocoanut
oil,camphor and other chemical items, causing the group to advance slightly.
The housefurnishing goods group showed a fractional increase due in the
main to rising prices for certain furniture items. The miscellaneous
commodity group advanced 0.1 of 1% and important items in the group
contributing to the rise were rubber and cattle feed. Since the Middle of
January of this year rubber prices have advanced 22%, placing present
prices at a level more than 2A times what they were early in July 1932.
Easing prices for c&taln lumber items and plumbing and heating articles
were largely responsible for the slight drop of the building materials group.
Declining prices for nonferrous metals forced the metals and metal products
group to recede 0.1 of 1%. Although cotton textiles continued to increase
in average price, declines in clothing and knit goods prices, together with
the weakening prices for Japan saw silk, forced the textile products group
to drop fractionally. The special group of all commodities other than farm
products and foods showed no change from the week before.
The index number of the Bureau of Labor Statistics is composed of 784
separate price series weighted according to their relative importance in
the country's markets and is based on average prices for the year 1926 as
100.0. The accompanying statement shows the' index numbers of the
major groups of commodities for the past two weeks, for one year ago, for
the low point of 1933 and the average for the year 1929:
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF FEB.3 AND
FEB. 10 1934, FEB. 11 AND MAR. 4 1933, AND YEAR 1929.
(1926=100.0)
Week EndingFeb. 10
1934.

Feb. 3
1934.

Feb. 11 Mar. 4
1933.
1933.

Year
1929.

All commodities

73.3

72.8

60.2

59.6

95.3

Farm products
Foods
Hides and leather products
Textile products
Fuel and lighting materials
Metals and metal products
Building materials
Chemicals and drugs
fIousefurnishing goods
Miscellaneous
All commodities other than farm
products and foods

61.4
66.8
90.5
76.4
73.9
85.0
86.3
75.1
81.9
68.5

60.5
65.7
90.5
76.5
73.9
85.1
86.4
75.0
81.8
68.4

41.2
54.4
68.1
51.0
64.7
77.9
69.6
71.4
72.7
60.6

40.6
53.4
67.6
50.6
64.4
77.4
70.1
71.3
72.7
59.6

104.9
99.9
109.1
90.4
83.0
100.5
95.4
94.2
94.3
82.6

78.7

78.7

66.6

66.2

91.6

Chain Store Sales Increased During January as
Compared with January 1933, According to Federal
Reserve Bank of New York.
In a report of chain store trade in the Second (New York)
District issued to-day (Feb. 24) the New York Federal
Reserve Bank states that "total January sales of reporting
chain store systems were 14% higher than a year ago, the
largest increase in over four years, but when allowance
is made for one more shopping day in January this year
the increase was approximately the same as in December.
The Bank continues:
Even on an average daily basis, however, sales of the variety chains
showed a larger increase over a year previous than in any month in over
seven years, and sales of the 10-cent chains advanced by the largest amount
in nearly five years. Sales of shoe and grocery chain stores, moreover.
were ahead of the corresponding month a year ago for tho first time in
over two years; candy sales continued somewhat larger, and sales of the
drug chains showed the smallest decrease from a year previous since
April 1932.
A large increase over a year ago occurred in sales per store of the shoe
chain systems owing to a material reduction in the number of units operated, and all other types of chain stores covered by these reports had
larger sales per unit, with the exception of candy chains, which showed
a 18% increase in the number of stores in operation during the past year.

Wholesale

Prices
Week During




Feb. 24 1934

Percentage Change January 1034
Compared with January 1933.
Type of Store.

Number of
Stores.

Total
Sales.

Sales Per
Store.

Grocery
Ten-cent
Drug
Shoe
Variety
Candy

-1.9
--0.5
--22.5
--29.8
+0.2
+15.6.

+4.3
+16.1
-11.0
+8.4
+33.3
+4.1

+6.3
+16.7
+14.9
+54.4
+33.1
-10.0

Total

-2.6

+14.2

+17.2

1303

Financial Chronicle

Volume 138

"Annalist" Weekly Index of Wholesale Commodity
Prices Decreased During Week of Feb. 20, Following Eight Consecutive Increases-Domestic and
Foreign Wholesale Price Indices for January.
In a generally quiet week the "Annalist" Weekly Index
of Wholesale Commodity Prices went to 106.4 on Feb. 13,
from 106.7 (revised) the week before. The commodities
moved generally within fairly restricted limits, the "Annalist" said, reflecting in part the restricted trading that has
prevailed in most of the markets pending further information
as to how far the Administration proposed to go in the regulation of the commodity exchanges, although the prospects
appear to be for less drastic action than in the case of the
security exchanges. The "Annalist" continued:
With quotations of the dollar on Feb. 13 in exchange on France, Switzerland, Holland and Belgium making a valuation in terms of the old dollar
of 60.1 cents, compared with 60.2 cents a week ago, the index in terms of
the old dollar went to 63.9 from 64.2 (revised).
Advances were made by steers, pork products, butter, cheese, silk, coffee
and tin, while losses were reported for hogs, the grains, flour, beef, eggs,
cotton, hides, rubber and refinery gasoline. The drop in refinery gasoline
reflected the three-Judge Federal Court decision in Texas to the effect that
oil refiners not signers of the code and engaging only in Intra-State business
were not subject to the code or its penalties; the case is being carried to the
Supreme Court by the Government.
TITE "ANNALIST" WEEKLY INDEX OF WHOLESALE COMMODITY
PRICES.
Unadjusted for seasonal variation-(1913=l00)
Feb. 20 1934. Feb. 16 1934. Feb. 21 1933.
61.2
92.2
91.9
Farm Products
84.9
Food products
107.1
106.4
Textile products
65.0
121.5
*121.2
104.3
Fuels
142.2
141.2
93.7
Metals
105.0
104.9
106.5
113.5
Building materials
113.6
95.2
Chemicals
199.5
99.5
67.9
Miscellaneous
87.0
86.9
All commodities
79.9
x106.7
106.4
a All commodities on gold basis
79.3
x64.2
R3 9
•Preliminary. a Revised. z Based on exchange quotations for France,Switzerland, Holland and Belgium.
DAILY SPOT PRICES.
Indez.
Cotton.

Wheat.

Corn.

Hogs.

(1.8.
$

Oki.
$

Feb. 13
4.45
12.45
.66%
139.7. 84.1
1.07
Feb. 14
12.40
139.2
4.54
83.8
1.0744
.66%
Feb. 15
4.53
12.45
.66%
1.07%
84.1
140.0
Feb. 16
12.55
.66%
140.4
1.07%
4.53
84.1
Feb. 17
.66%
1.07%
4.55
12.55
139.7
84.1
Feb. 19
4.47
12.40
.65%
1.06%
139.5
84.0
Feb. 20
4.52
12.30
.65
138.9
1.05%
83.5
Cotton-Middling upland, New York. Wheat-No.2 red, new,cit. domestic,
New York. Corn-No. 2 ye low, New York. Hogs-Days average Chicago.
Moody's Index-Dally index of 15 staple commodities, Dec. 311931=100; March 1
1933=80.

The "Annalist" reported as follows as to domestic and
foreign prices during January:
Wholesale prices in the leading foreign industrial countries were generally
higher in January than in December when measured in domestic currency.
While prices in the United States made a gain of 1.9%, those in Canada
rose 2.3%. in the United Kingdom 1.9%, in Germany 0.1%, in Italy
0.3% and in Japan 0.2%. The upward trend of internal prices thus continued in January the rise that had marked December (except in England
and Japan, where recovery of the domestic currency had depressed the
price level). In France, however, the index declined 0.5%. reflecting the
unsatisfactory internal conditions.
In terms of gold, however, the price levels of most of the paper-currency
countries (Canada. the United Kingdom and Japan) declined in January,
in consequence of the fall in their exchange that has followed our announcement of a 59.06-cent dollar. That only losses or small gains were reported
for the gold countries, France, Germany and Italy, reflects the same exchange situation-primarily the pressure of the dollar devaluation and of
the ensuing capital repatriation. The "Annalist" International Composite
Index (representing Belgium and the Netherlands in addition to the seven
above countries) reflected the same influences, declining to a preliminary
74.0 for January (1913=100.0),from 74.2 (revised) in December.
DOMESTIC AND FOREIGN WHOLESALE PRICE INDICES.
(Measured in currency of country; index on gold basis also shown when currency
has depreciated: 1913=100.0)
Jan.,
1934.

Dec.,
1933.

Nov.,
1933.

Jan.,
1933.

Jan,
1932.

y Monilds
Change.
Per Cent.

103.5
TJ. S. A
65.0
Gold
110.3
Canada
*69.1
Gold
United Kingdom_ _ _ 104.8
"68.4
Gold
405
France
96.3
Germany
"277.4
Italy
*132.8
Japan
'50.8
Gold
Composite gold z_ _ *74.0

101.6
64.7
107.8
69.4
102.8
69.2
2407
x96.2
x276.5
132.6
52.3
s742

103.2
64.1
107.3
67.9
102.8
68.0
1403
96.0
275.3
135.0
51.4
x72.5

82.4
82.4
99.8
87.3
100.3
69.3
411
91.0
296.5
139.8
58.2
70.2

94.0
94.0
108.4
92.3
105.8
74.6
439
100.0
325.9
120.5
87.0
575

+1.9
+0.5
+2.3
-0.4
+1.9
-1.2
-0 5
+0.1
+0.3
+0.2
-2.9
-0 2

With respect to groups, the specialty and department store chains
made the best showing, with a sales advance of 39.6%. Mail order chains
followed closely with a gain of 36.3%, and the shoe chains, represented
by Schiff Co., were 36.1% ahead.
Sales of the 5 & 10-cent-S1 chains gained 17.4%; drug chains were 13%
ahead and the grocery chain group advanced 5.7%.
The best individual gain was made by M.H. Fishman,in the 5 & 10-cent31 group, January sales of which were 52.7% larger than in January 1933.
Montgomery Ward's improvement was second best at 45.9%; G. C.Murphy
was third at 37.6%. and Schiff Co., fourth with a gain of 36.1%.
The following tabulation gives individual results and group totals for
January 1934 with comparative totals and percentage of change.
1934.

1933.

P. C. Gain.

$10,602,865
2,271,149
1,373,111
7,899,714
2,520,428
59,922,780
15,397,725
16,486,586

$10,157,087
2,163,375
1,398,267
7,210,918
2,382,936
57,242,421
14,628,143
14,995,855

4.4
4.9
x1.8
9.5
5.8
4.7
5.2
9.9

$116,474,358

$110,179,002

5.7

$154,807
4,832.562
8,824,820
5,106,517
1,554.500
984.463
2,360,392
18,137,341

$101,306
4,272.879
7,706,388
4,012,983
1,129,575
793,048
1.883,121
15,844.684

52.7
13.1
14.5
30.5
37.6
24.1
25.3
14.4

Total
Specially dh Department
Interstate
Lane Bryant
J. C.Penney

$41,955,402

$35,743,984

17.4

$1,084,777
952,108
12,444,239

$876,392
804,217
8,689,376

23.7
18.4
43.2

Total
Drug ChainsPeoples Drug
Waigreen

$14,481,124

$10,369,985

39.6

$1,322,137
4,302,113

$1,310,613
3,664,964

0.8
17.4

$5,624,250

$4,975,577

13.0

$486,530

$357,430

36.1

$14,733,847
20,386.475

$10,100,149
15,661,617

45.9
30.2

$35,120,322

$25,761,766

36.3

$214,141,986

$187,387,744

14.3

GroceriesAmerican Stores
Bohack
Dominion Stores
First National
Grand Union
A.& P
KrogerSafeway Stores
Total
5 & 10-cent41.38. H. Fishman
W.T. Grant
S. S. Kresge
S. H. Kress
G. C. Murphy
Neisner Bros
.1. J. Newberry
Woolworth

Total
Shoe ChainsBe= Co
Mail Order ChainsMontgomery Ward
Sears,Roebuck
Total
Grand total
:Decrease.

Increase of $1,240,000,000 Reported in Gross Farm
Income During 1933 Over 1932-Income Below
1931 and 1929.
Gross farm income in 1933 was $1,240,000,000 more than
in 1932, an increase of 24%, due chiefly to increased prices
for crops and to benefit and rental payments.by the Agricultural Adjustment Administration, according to estimates
by the Bureau of Agricultural Economics, United States Department of Agriculture, announced Feb. 17. The estimates
show:
year was about
The gross income from agricultural production last
and benefit
$6,094,000,000, and farmers have received, or will receive, rental
co-operation in
payments of approximately $289,000,000 from the AAA for
total

estimated
crop adjustment programs during 1933. This makes an
the gross income
gross farm income of $6,383,000,000, whereas in 1932
1931 was $6,911,from production was $5,143,000,000. Grose income in
000,000, and in 1929 it was $11,918,000,000.
year was
Gross income from farm production of dairy products last
$785,000,000, or
$1,250,000,000, or 1% less than in 1912; of vegetables,
32% more than in 1932; cotton and cottonseed, $670,000,000, or 56% more
-than in 1932 (also $160,000,000 benefit payments) ; grains, $600,000,000,
or 86% more than in 1932 (also $99,000,000 benefit payments). Hogs
were next in order of financial return, with a gross income of $590,000,000,
or 10% more than in 1932 (also $28,000,000 benefit payments); poultry
and eggs, $580,000,000, or 4% less than in 1912; cattle and calves, $505,000,000, or 1% more than in 1932; fruits and nuts, $403,000,000, or 18%
more than in 1932 ; tobacco, $180,000,000, or 56% more than In 1932 (also
$2,000,000 benefit payments); sheep and wool, $150,000,000, or 40%
more than in 1932; sugar crops, $71,000,000, or 4% more than in 1932,
and other crops, $320,000,000, or 31% more than in 1932.

The Bureau says that income from grains, exclusive of
benefit payments in 1933, is making the greatest increase as
compared with 1932, being about 86% more than in that
year, and 27% more than in 1931. Income from tobacco
last year was 62% greater than in 1932 and 36% more than
in 1931. The Bureau continues:

• Preliminary. x Revised. y Change from December 1933 to January 1934.
z Includes also Netherlands and Belgium.
Indices wed: U. S. A., "Annalist": Canada, Dominion Bureau of Statistics;
United Kingdom, Board of Trade: France, StatIstlque Generale; Germany, Stallstische Relchsamt: Italy, Milan Chamber of Commerce: Japan, Bank of Japan.

Income from cotton and cottonseed was 56% snore than in 1932, and
27% more than in 1931. Income from all groups of crops was more in
1933 than in 1932, and with the exception of fruits and nuts, was larger
than in 1931.
The unusually low prices for livestock and livestock products during the
early months of last year greatly reduced the 1933 income from these
commodities, and the present available data on marketings and prices indicate a gross income for 1933 only 2% larger than in 1932, and 26% smaller
than in 1931. Small increases in income from meat animals and wool were
partly offset last year by decreases In incein from dairy and poultry
products.

January Chain Store Sales Up 14.3%.
According to statistics prepared by Lehman Brothers of
this city, sales of the first 24 chain stores to report results
for the month of January recorded an aggregate gain of
14.3% over sales for January 1933. The bankers report as
follows:

Production of Electricity for Week Ended Feb. 17 1934
Exceeded Corresponding Period Last Year by
11.6%.
According to the Edison Electric Institute, the production of electricity by the electric light and power industry
of the United States for the week ended Feb. 17 1934 was
1,640,951,000 kwh., an increase of 11.6% over the corre-




1304

Financial Chronicle

sponding period in 1933, when output amounted to 1,469,732,000 kwh. The current figure also compares with
1,651,535,000 kwh. produced during the week ended Feb.
10 1934 and 1,636,275,000 kwh. during the week ended
Feb. 3 1934.
All of the seven geographical areas continued to show
gains over the same period last year. With the exception
of the West Central and Southern States regions all of
these areas showed larger percentage increases than those
for the week ended Feb. 10 1934 as compared with the
week ended Feb. 11 1933.
The Institute's statement follows:
PER CENT CHANGES (1934 OVER 1933).
Major Geographic
Divisions.

Week Ended
Week Ended
Feb. 17 1934. Feb. 10 1934.

Week Ended
Week Ended
Feb. 3 1934. Jan. 27 1934.

New England
Middle Atlantic
Central Industrial__.._
Southern States
Pacific Coast
West Central
Rocky Mountain

+13.2
+12.1
+15.4
+7.0
+8.9
+3.1
+12.0

+12.9
+11.6
+14.5
+10.0
+8.6
+4.6
+8.9

+11.8
+12.3
+16.6
+10.8
+8.6
+6.2
+17.6

+8.6
+9.9
+13.1
+7.9
+2.8
+5.2
+17.5

Total United States..

+11.6

+11.4

+12.5

+9.6

Arranged in tabular form, the output in kilowatt hours oi
the light and power companies of recent weeks and by
months since and including January 1930 is as follows:
Week of-

1933.

Week of-

1932.

Week of-

1931.

1933 over
1932.

May 6 1,435,707,000 May 7 1,429,032,000 May 9 1,637,296,000 0.6%
May 13 1,468.035,000 May 14 1,436,928,000 May 16 1,654,303,000
2.2%
May 20 1,483,090,000 May 21 1,435,731,000 May 23 1,644,783,000
May 27 1,493.923,000 May 28 1,425,151,000 May 30 1,601,833,000 3.3%
June 3 1,461.488,000 June 4 1,381,452,000 June 6 1,593,662,000 4.8%
June 10 1.541,713,000 June 11 1,435,471.000 June 13 1,621,451,000 6.8%
7.4%
June 17 1,578,101,000 June 18 1,441,532,000 June 20 1,609,931,000 9.5%
June 24 1,598,136,000 June 25 1,440,541,000 June 27 1,634,935,000 10.9%
July 1 1,655,843,000 July 1 1,456,961,000 July 4 1,607,238,000 13.7%
July 8 1,538,500,000 July 9 1,341,730,000 July 11 1,603,713,000 14.7%
July 15 1,648,339,000 July 16 1,415,704,000 July 18 1,644,638,000 16.4%
July 22 1.654,424,000 July 23 1,433,990,000 July 25 1,650,545,000 15.4%
July 29 1,661,504,000 July 30 1,440,386,000 Aug. 1 1,644,089,000 15.4%
Aug. 5 1,650.013,000 Aug. 6 1,426,986,000 Aug. 8 1,642,858,000
Aug. 12 1,627,339,000 Aug. 13 1,415,122,000 Aug. 15 1,629,011,000 15.6%
15.0%
Aug. 19 1,650,205,000 Aug. 20 1,431,910,000 Aug. 22 1,643,229,000
Aug. 26 1,630,394,000 Aug. 27 1,436,440,000 Aug. 29 1,637,533,000 15.2%
Sept. 2 1,637,317,000 Sept. 3 1,464,700,000 Sept. 5 1,635,623,000 13.5%
Sept. 9 1,582.742,000 Sept. 10 x1,423,977,000 Sept. 12 1,582,267,000 11.8%
Sept. 16 1,663,212,000 Sept. 17 1,476,442,000 Sept. 19 1,662,660,000 11.1%
Sept. 23 1,638,757,000 Sept. 24 1,490,863,000 Sept. 20 1,660,204,000 12.7%
9.9%
Sept. 30 1.652.811,000 Oct. 1 1,499,459,000 Oct. 2 1,645,587,000 10.2%
Oct. 7 1.646,136,000 Oct. 8 1,506,219,000 Oct. 10 1,653,369,000 9.3%
Oct. 14 1,618,948,000 Oct. 15 1,507,603,000 Oct. 17 1,656,051,000
Oct. 21 1,618,795,000 Oct. 22 1,528,145,000 Oct. 24 1,646,531,000 7.4%
5.9%
Oct. 28 1,621,702,000 Oct. 29 1,533,028,000 Oct. 31 1,651,792,000 5.8%
Nov. 4 1,583,412,000 Nov. 5 1,525,410,000 Nov. 7 1,628,147,000 3.8%
Nov. 11 1,616,875,000 Nov. 12 1,520,730,000 Nov. 14 1,623,151,000 6.3%
Nov. 18 1,617,249,000 Nov. 19 1,531,584,000 Nov. 21 1,655,051,000
Nov. 25 1,607,646,000 Nov. 26 y1,476,268,000 Nov. 28 1,599.900,000 1 5.6%
Dec. 2 y1,653,744,000 Dec. 3 1,510,337,000 Dec. 5 1,671,466,000 5.9%
Dec. 9 1,619,157,000 Dec. 10 1,518,922,000 Dec. 12 1,617,717,000
Dec. 16 1,644,018,000 Dec. 17 1,563,384,000 Dec. 19 1,675,663,000 6.6%
5.2%
Dec. 23 1,656,616,000 Dec. 24 1,554,473,000 Dec. 26 1,664,652,000 6.6%
Dec. 30 1,539,002,000 Dec. 31 1.414,710,000
1932.
1934.
1933.
Jan. 2 1,523,652,000
Jan. 6 1,563,678,000 Jan. 7 x1.425,639,000 Jan. 9 1,619.265,000 8.8%
9.7%
Jan. 13 1,646,271,000 Jan. 14 1,495,116,000 Jan. 16 1,602,482,000 10.1%
Jan. 20 1,624,846,000 Jan. 21 1,484,089,000 Jan. 23 1,598,201,000 9.5%
Jan. 27 1,610,542,000 Jan. 28 1,469,636,000 Jan. 30 1,588,967,000 9.6%
Feb. 3 1,636,275,000 Feb. 4 1,454,913,000 Feb. 6 1,588,853,000 12.5%
Feb. 10 1,661,536,000 Feb. 10 1,482,509,000 Feb. 13 1,578,817,000 11.4%
Feb. 17 1.640,951.000 Feb. 18 1,469,732,000 Feb. 20 1,545,469,000
Feb. 24
Feb. 25 1,425,511,000 Feb. 27 1,512,168,000 11.6%
.
_ -Mar. 3
Mar. 4 1.422.815.000 Mar. 6 1,519.679.000
x Revised figure. y Includes Thanksgiving Day.
DATA FOR RECENT MONTHS.
Month of-

1933.

1932.

1931.

January ____
February ___
March
April
May
June
July
August
September
October
November
pecember

6,480,897,000
5,835,263,000
6,182,281,000
6,024,855,000
6,532,686,000
6,809,440,000
7,058,600,000
7,218,678,000
6,931,652,000
7,094,412,000
6,831,573,000
7,009,164,000

7,011.736,000
6,494,091,000
6,771,684,000
6,294,302,000
6,210,554,000
6,130,077,000
6,112,176,000
6,310,667,000
6,317,733,000
6,633,865,000
6,607,804,000
6,638,424,000

7,435,782,000
6,678,915,000
7,370,687,000
7,184,514,000
7,180,210,000
7,070,729,000
7,286,676,000
7,166,086,000
7,099,421,000
7,331,380,000
6,971,644,000
7,288,025,000

1930.

1933
Under
1932.

8,021,749,000 7.6%
7,066,788,000 10.1%
7,580.335,000 8.7%
7,416,191,000 4.3%
7,494,807,000 a5.0%
7,239,697,000 al1.1%
7,363,730.000 a15.5%
7,391,196,000 a14.4%
7,337,106,000 89.7%
7,718,787,000 a6.9%
7,270,112,000 85.0%
6,566,601,000 a5.6%

Total
80,009,601,000 77,442,112,000 86,073,969,000 89,467,099,000 83.3%
a Increase over 1932.
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%.

Revenue from Domestic Sales of Electricity Declined
1.9% During 1933- Use of Power in Homes
Off 0.2%.
For the first time since the building of the first electric
generating plant more than 50 years ago consumption of
electricity by residential consumers during 1933 was less
than in the preceding year.
Statistical data for 1933 just completed by the Edison
Electric Institute shows that domestic customers used
11,960,256,000 kwh. last year, 0.2% less than in 1932
when 11,986,872,000 kwh. were so consumed, and paid
$656,570,100 for their current,'or 1.9% less than the $669,199,700 paid in 1932. In reviewing the Institute's report,
the "Wall Street Journal" of Feb. 17 stated:
This first interruption of a more than 50-year progressive uptrend is
attributed to the doubling up of fernlike, a development of the depression.




Feb. 24 1934

Had it not been for the sale of 1,000,000 electric refrigerators during 1933,
residential consumption would have decreased even more.
While the industry sold 65,753,608,000 kwh. of electricity to ultimate
consumers in 1933, 3.1% more than in 1932, it received 3.2% less for its
product, total revenue amounting to $1,773,415,600.
Large wholesale customers took 8.1% more current than in 1932, but
paid 2.4% lees. Retail commercial customers used 3.5% less electricity
at a cost of 5.5% less than in 1932.
Though 1929 and 1928 were the peak business years for most industries,
the electric power and light business established its peak earnings in 1930
with total revenue from all consumers of $1,991.000,000, compared with
which 1933 gross was down about 11%•
During December the industry had total revenue from ultimate consumers
of $156,127,100 from the sale of 5,690,726,000 kwh. In December 1932
the industry sold 5,344,898,000 kwh. for 3157,561,400. December gross
was 0.9% less than 1932 and sales of energy were 6.5% more.
The doubling-up in housing which became pronounced early in 1933
showed evidence of diminution in the second half of last year, when monthly
increases in customers were registered. This development continued in
December with a showing of 40.000 more customers than in November,
making the total at the end of the year 20,006,129. as contrasted with
19,849,963 at the end of 1932.
Last year gave the industry an average revenue per kwh. of 5.49 cents.
1.6% smaller than in 1932. The average monthly bill per residential
customer in 1933 amounted to $2.76, compared with $2.79 in 1932.

The following statistics, covering 100% of the electric
light and power industry, were released by the Edison
Electric Institute on Feb. 15:
PRELIMINARY STATISTICS FOR CALENDAR YEARS 1933 AND 1932.
P. C.
y Kilowatt Hours Generated (NCO1933.
1932.
Change
By fuel
47,426,520,000 45,778,883,000 +3.6
13y water power
31,591,146,000 31,106,865,000 +1.6
Total kilowatt-hours generated
Additions to SupplyEnergy purchased from other sources
Net international imports

79,017,666.000 76,885,248,000

+2.8

2,288,406,000 2,178,681,000 +5.0
605,852,000
440,884,000 +37.4

Total
2,894,258,000 2,619,466,000 +10.5
Deductions from SupplyEnergy used in electric railway departments- 698,815,000
842,976,000 -17.1
Energy used in electric and other departments 1,203,608,000 1,219,625,000 -1.3
Total
1,902,423,000
Total energy for distribution
80,009,501,000
Energy lost in transmission, distribution, dro_14,255,893,000
Kilowatt hours sold to ultimate consumers 65,753,608,000
Number of Customers (Average for Year)xDomestic
19,800,172
Commercial-Small light and power (retail)_
3,671,102
Largelight and power (wholesale)
628,570
Municipal street lighting
37,166
Street and interurban railways
637
Electrified steam railroads_
27
Municipal and miscellaneous
29,379

2,062,601,000 -7.8
77,442,112,000 +3.3
13,678,088,000 +4.2
63,764,024,000 +3.1
19,955,545 -0.8
3,707,452
554,650
35,641
637
27
28,471

Total number of ultimate consumers
24,067,053
24,282,423
Kilowatt Hours .5001(0 Ultimate ConsumersDomestic service
11,960,256,000 11,986,872,000
Commercial-Small light and power (retall).12,474,822,000 12,932.095,000
Large light and power (wholesale)
33,722,373,000 31385.783,000
Municipal street lighting
2.213.007,000 2,364.480,000
Street and interurban railways
4,003,876,000 4,175,022.000
661,387.000
Electrified steam railroads
539,901,000
Municipal and miscellaneous
717,887,000
579,871,000

-0.9
-0.2
-3.5
+8.1
-6.4
-4.1
+22.5
+23.8

Total to ultimate consumers
65,753,608,000 63,764,024,000 +3.1
Revenue from Ultimate Consumers5656.570.100 5669.199,700 -1.9
Domestic service
528.861,300 -5.5
Commercial-Small light and power (retail). 499,684,400
476,450,600 -2.4
465,190,800
Large light and power (wholesale)
100,918,700 -6.6
94,269,500
Municipal street lighting
38,310,700 -5.1
Street and interurban railways
36,358,900
6,549,900
6,821,000 +12.5
Electrified steam railroads
14,792,000
13,033,900 +13.5
Municipal and miscellaneous
51,773.415,600 51,832,595,900 -3.2
Total from ultimate consumers
a Number of customers on Dec. 31 were as follows:
1933.
1932.
Farms In Eastern area (Included with domestic)
(506,637) (500,782)
Farms in Western area (incl. with commercial-large)
(204,005) (204,293)
20,006,129 19,849,963
Domestic service
Commercial-Small light and power
3,697,324
3,687,636
Large light and power
625,625
544,689
All other ultimate consumers
66,437
67,012
24,295,516 24,149.300
Total ultimate consumers
y As reported by the U. S. Geological Survey with deductions for certain plants
not considered electric light and power enterprises.
Note.-Data for 1932 and 1933 is subject to revision pending final 1932 U. S.
Census releases.

Valuation

of Construction Contracts Awarded,
Compiled by F. W. Dodge Corp.

as

The valuation of construction contracts awarded in the
37 States east of the Rocky Mountains in the month of
January 1934 was $104,107,700 larger than in January
1933, the figure for January of this year being $187,463,706,
against $83,356,000 in the same month of last year.
Contracts let during January showed a gain of over 100% over January
1933, according to F. W. Dodge Corp.; but the total of $187,463,700
was almost 10% smaller than the contract volume for December, which
total $207,209,500. The current January total was only 5% behind the
volume for the entire first Quarter of 1933; this discloses how great has
been the relative improvement over the lethargic conditions of last year.
In commenting on the outlook the "Dodge Bulletin" observes:
"There can be little doubt that the contract volume for the initial quarter
of 1934 will exceed $500 millions; this, in contrast with $196 millions for
the corresponding quarter of 1933."
January contracts for residential building totaled $15,110,400, as against
$23,899,600 for December and only $11,950.900 for January 1933. Awards
for non-residential building amounted to $58,616,100 in January, as compared with $50.040.000 for December and only $28,731,600 for January
of last year. Public works contracts (of engineering types) awarded in
January not only exceeded the totals for both comparative periods, but
were more than 60% larger than those reported for the entire first quarter
of 1933. l'ublic utilities awards fell sharply from December, but were
maintained above the level of January 1933
January contracts for all classes of construction were larger than a
year ago in each of the 13 Dodge districts, except the Metropolitan New

Financial Chronicle

Volume 138

York Area, the New Orleans District, and Texas. The largest relative
gains occurred in the Southeastern and the Pittsburgh areas.
For residential building alone gains over last year were reported in the
Middle Atlantic, Southeastern, Southern Michigan, St. Louis, Kansas
City, and New Orleans districts; declines were shown in the remaining
seven districts.
For non-residential building alone gains over January 1933 centered in
the New England, Middle Atlantic, Pittsburgh, Southeastern. Chicago,
Central Northwestern, Southern Michigan, St. Louis, Kansas City, and
New Orleans territories; losses only were reported for the Metropolitan
Area of New York, Up-State New York, and Texas.
For public works (civil engineering projects) gains over a year ago were
universal, except for declines in the New Orleans and Texas areas. For
public utilities gains over last January were recorded in each district except
Metropolitan New York and Kansas City territories.
Contemplated construction reported during January totaled $475,894,600
for the 37 Eastern States; this compares with $778,030,600 for December
and $101,843,300 for January of last year. Gains over a year ago in
contemplated work were reported in each of the 13 districts except the
Kansas City area, where the decline was only nominal. Contemplated
work reported in January for the 37 States totaled greater than the volume
reported for the entire first quarter of 1933.
CONSTRUCTION CONTRACTS AWARDED-37 STATES EAST OF THE
ROCKY MOUNTAINS.
No. of
New Floor
Projects. Space (Sq. Ft.)
Month of January1934-Residential building
Non-residential building
Public works and utilities
Total construction
1933-Residential building
Non-residential building
Public works and utilities
Total construction

Valuation.

1,730
3,419
2,580

3,943,400
5,469,600
155,700

515,110,400
58,616,100
113,737,200

.7,729

9.568,700

5187,463,700

1,794
1,466
540

3.160,100
4,460,300
832,100

$11,950,900
28,731.600
42.673.500

3800

8.452.500

383.356,000

NEW CONTEMPLATED WORK REPORTED-37 STATES EAST OF THE
ROCKY MOUNTAINS.
1933.

1934.
No. of
Projeas.
Month of JanuaryResidential building
Non-residential building_ __
Public works and utilities_
Total construction

Valuation.

No. of
Projects.

Valuation.

2,337
4,692
3,091

$52,100,600
150,454,900
273.339,100

2,392
2,183
802

$18,807,300
39,895,100
43,140,900

10,120

$475,894,600

5,377

3101,843,300

Semi-Annual Survey of Real Estate Market by National
Association of Real Estate Boards-Spreading
Shortage of Single-family Dwellings Shown-Upward Movement in Rents Begun-Abnormal Conditions in Money Supply Continues.
Indication of greater activity in the real estate market
and definite measure of the growing shortage of singlefamily dwellings are given in the 22nd semi-annual survey
of the real estate market made by the National Association
of Real Estate Boards, released Feb. 10. The findings cover
273 cities. They are based on confidential reports by the
Association's local member boards in each of the cities.
The survey shows:
Appreciable percentage of cities in every section of the United States
showing shortage of single-family dwellings. (This was not true six
months ago.)
Shortages appearing in apartment space. This, as yet, in cities of under
100,000 population.
First sign of a check in the down tendency in rents. UP movement
begun, both in residential and business space.
Indicated stoppage of the decline in real estate selling prices (although
levels are still generally at maximum lows.)
Absolute dearth of money supply continuing in every section and In
every type of city.
Interest rates rising In 68% of the cities of over 500,000 population.

The survey of six months ago showed for the first time
since June 1929 a predominating up trend in market activity,
the Association said. The current survey shows the up
dominance continuing, with 37% of the cities showing a
more active market than existed one year ago and only 21%
a less active market. The South Atlantic section, with
56% of its cities showing an up trend, and the West South
Central section with 47%, lead the movement. In the
Association's survey of a year ago 65% of the cities gave
their market condition as "less active." The Association
further reported:
Selling Prices Indicate Advantageous Buying Level.
The survey's findings on prices indicate the present advantageous buying
level. Lower selling prices than prevailed at this time a year ago are shown
in 50% of the cities reporting. Prices are at about last year's level in 43%
of the cities. They have gone up in 7% of the cities reporting. In the
survey of a year ago 89% of the cities showed lower selling prices. Less
than 1% at that time showed the price level going higher.
Shortage in 27% of Cities in Single-Family Residences.
A marked change in the last six months is shown in supply of single-family
residences. Actual shortage in this typo of structure exists in 27% of the
cities reporting, whereas only 12% showed such shortage six months ago
and only 7% a year ago.
Shortage is shown by 69% of the cities in the West South Central section,
by 40% of the New England cities reporting, by 40% of the Pacific Coast
cities reporting and by 33% of the cities in the Middle Atlantic section.
Percentage of cities showing shortage in other sections is as follaws: South
Atlantic section, 15%; East North Central section, 23%; West North




1305

Central section, 22%; East South Central section, 38%; Mountain section. 14%.
The condition of shortage appears to be more prevalent in the smaller
rather than the larger cities, but no city of over 500,000 population reported an oversupply of this type of structure, and 14% of this group
showed a shortage.
Apartment Absorption in Smaller Cities.
Shortage in apartment space is shown in 11% of the cities reporting, as
against 5% so reporting six months ago. The number of cities shovging
oversupply has been cut down to 23% of those reporting, as against 36%
six months ago. In the New England section 20% of cities report a shortage. However, in the whole survey, no city of over 100,000 population
reported any apartment shortage, and 75% of the cities of over 500,000
population indicate oversupply.
Not a single city in any section reported a shortage of business property.
Overstock was reported by 41%,as against 47% of the cities six months ago.
Some Up Turn in Rents.
The down tendency in rents is still dominant, but first signs of an up turn
appear. Two-family dwellings and central business property show the
most general stiffening. Higher rents than a year ago for central business
space have come into effect in 14% of the cities reporting. Six months ago
only 1% reported up rents in central property.
In two-family dwellings 16% of the cities show an up turn in rents.
In single-family dwellings rents are up in 5% of the cities, stationary
In 51% and down as compared with last year at this time in 44% of the
cities. This contrasts with the like survey of a year ago in which 76%
of the cities showed a down trend.
Apartment rents are up in 8% of the cities, stationary in 43% and down,
as compared with rates a year ago, in 49% of the cities. This shows a
considerable checking of the down trend, as is seen from the fact that six
months ago 74% of the cities showed a down trend, and a year ago 90%
of the cities showed lowered rates.
Complete Dearth of Capital Supply.
Money supply for real estate loans is shown to be practically non-existent.
a condition that has prevailed for four years. Loans are seeking capital
In 89% of the cities reporting, and in 100% of the cities in some geographical
sections. The dearth of capital supply prevails in every section and in
cities of every population group.
Not a single city of the largest population group (500,000 population
or over), in other words, not a single money centre, shows capital seeking loans.
Interest Rates Up in Larger Cities.
Interest rates are reported steady in 68% of the cities, rising in 20%
of the cities, falling in 12% of the cities. But it must be noted that 67%
of all cities of over 500,000 population show rising rates, and none of them
report falling rates. In general the survey shows a gradation of trend.
The larger the cities the more prevalent are rising interest rates.
Markel for Vacant Properly Coming Up in Larger Cities.
For the country as a whole, less than 1% of cities report a more active
subdivision market. A level about that of last year at this time is reported
in 46% of the cities, a less active condition in 53% of the cities. However,
the first signs of a more active condition emerge in reports from the larger
cities. In cities of over 500,000 population 12% show a market more
active than existed at this time last year, 38% a stationary condition and
50% a less active market. In the Association's survey of six months ago
not a single city of whatever size in any section of the country reported a
more active subdivision market.
Index of Activity for December, 53.8-Year's Low Passed in April.
Real estate market activity as measured by number of deeds recorded
stood at 53.8 for December, according to the compilation made monthly
by the National Association of Real Estate Boards from official records
in 61 typical cities. The index uses official totals for the corresponding
month of the year 1926 as its base figure (100).
The index for November was 54.1. The year's low point was registeerd
in April, with an index for that month of 41.1. A secondary low appeared
in July, when the index stood at 41.5.

Factory Employment and Payrolls in Pennsylvania
Showed Decline from Mid-December to Mid-January, According to Philadelphia Federal Reserve
Bank-Delaware Factories Also Report Decreases.
The number of wage earners in the manufacturing industry
of Pennsylvania showed a further decline of almost 5%
and the amount of wages paid 8%from the middle of December to the middle of January, according to figures compiled
by the Philadelphia Federal Reserve Bank from reports of
1,741 factories which in January employed about 360,000
workers whose weekly payroll averaged 86,070,000. Under
date of Feb. 19 the Bank announced:
On the basis of these reports and the Census figures, it is estimated that
Pennsylvania factories in January had on their rolls 722,000 wage earners,
or 36.000 fewer than in December, and their total weekly payrolls amounted
to 312,000,000, a drop in the month of $1,000,000 a week. As was
the
case last year, these decreases were somewhat larger than usual.
The
table below shows changes from December to January in the past 11 years:
• PER CENT CHANGE FROM DECEMBER TO JANUARY.

1924
1925
1926
1927
1928
1929

Employmeat.

Payrolls.

-2.1
+1.3
+0.2
-2.2
-1.8
-0.1

-5.0
-1.7
-1.9
-5.8
-4.5
-2.2

Employee
Hours.
1930
1931
1932
1933
1934

Employmen!.

Payrolls.

-1.9
-3.4
-2.9
-4.7
-4.7

-2.1
-6.4
-6.3
-9.9
-7.5

Ern;
ho.
-1.:,
-5.:
---3.1-10.9
-8.::

-4.0
-2.1
The trend of factory employment has been steadily
downward since
October, when the level was the highest in two years. The January
employment fell off 10% from this high level, but it was still about
18% above
a record low mark reached in March. Comparing January this
year with
last. Pennsylvania factories employed about 95,000.
or 15%, more wage
earners and their weekly wage disbursements were nearly
$3,500,000.
or 39%, larger.
Operating time, as measured by the number of employee-hours
actually
worked, registered a further decrease of 8% from December to
January.
according to figures available from about 85% of the reporting factories.
The curtailment of working schedules has been almost continuous since
August, indicating a reduction in productive activity of Pennsylvania

Financial Chronicle

1306

factories. Of the total of 63 individual lines, 44 reported contraction and
19 expansion in working time during January. Compared with a year
ago, operating levels on the whole were 21% higher. Average hourly
earnings also appear to have been 26% larger in January this year than
last.
Delaware factories report a decline of 4% in employment and nearly
5% in payrolls and working time from December to January. In comparison
with a year ago, however, employment was 20% larger and weekly wage
disbursements were 28% greater.
FACTORY EMPLOYMENT AND PAYROLLS BY INDUSTRIAL AREAS.
Prepared by the Department of Research and Statistics, Philadelphia Reserve
Bank, from reports collected by this bank in co-operation with the U. S. Bureau
of Labor Statistics and the Pennsylvania Department of Labor and Industry.
(Industrial areas are not restricted to corporate city limits, but comprise one or
more counties.)
Payrolls.

Employment.

Per Cent
Per Cent
Jan. Change from- Jan. Change from1934
1934
Jan.
Jan. Index. Dec.
Index. Dec.
1933. 1933.
1933. 1933.
64.0
67.8
63.4
66.5
69.8
55.6
40.6
52.1
89.8
50.4
73-3
70.0
75.8
74.6
70.1
50.5
50.5
83.9
77.2
89.7
62.6

Allentown-Lehigh (3 counties)
Altoona (2 counties)
Chambersburg (3 counties)
Clearfield (4 counties)
Erie (2 counties)
Harrisburg (3 counties)
Johnstown (3 counties)
Kane-Oil City (5 counties)
Lancaster (1 county)
Lewistown (3 counties)
Philadelphia (5 counties)
Pittsburgh (8 counties)
Pottsville (2 counties)
Reading-Lebanon (2 counties)
Scranton (5 counties)
Sharon-New Castle (2 countles)
Sunbury (4 counties)
Wilkes-Barre (3 counties)
Williamsport (5 counties)
Wilmington (1 county)
York-Adams (2 counties)

+0.5
-7.8
-5.7
-3.5
+0.1
+3.7
-0.5
+2.0
-6.2
-3.4
-4.7
-4.9
+1.5
-1.6
-5.7
-5.4
-13.2
-9.7
-6.5
-5.0
-17.4

+13.5
-7.3
+10.3
+17.9
+31.6
+15.1
+25.3
+35.0
+27.9
+9.8
+24.7
+24.8
+17.5
+13.7
+8.9
+20.2
-32.3
-5.1
+20.4
+21.1
+9.4

46.1
33.8
44.8
44.6
46.5
38.4
31.2
37.1
61.8
35.1
54.4
41.9
49.6
48.2
60.8
27.6
32.6
58.1
46.1
71.1
50.4

-1.3
-21.9
-0.4
-5.9
-1.1
0.0
+2.3
+4.8
-13.1
-3.0
-4.9
-9.9
+1.4
-11.6
-3.9
-20.7
-12.8
-8.4
-0.4
-7.4
-20.5

+56.3
+11.6
+42.2
+32.3
+40.5
+54.2
+95.0
+50.2
+41.6
+46.3
+37.4
+73.1
+45.0
+44.7
+29.1
+59.5
-33.5
+13.9
+30.6
+27.4
+24.4

FACTORY EMPLOYMENT AND PAYROLLS IN DELAWARE-COMPARISON WITH THE PREVIOUS MONTH 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

Per Cent Change January 1934
Compared with December 1933,
Employment.

Payrolls.

Employee
Hours..

51

-4.0

-4.6

-4.5

9
5
3
8
4
4
4

+2.7
-30.5
-3.2
-1.4
-4.1
-6.5
+1.2
-0.6
-4.8

+3.8
-35.5
-9.8
+2.9
+2.6
-6.2
+1.9
+2.1
-9.5

+6.8
-36.0
-7.0
-2.9
-2.7
-7.1
-0.2
+1.9
-9.8

6

• Based on reports from 47 plants.
FACTORY EMPLOYMENT AND PAYROLLS IN DELAWARE-COMPARISON WITH THE PREVIOUS YEARS FOR ALL MANUFACTURING
INDUSTRIES.
Prepared by Dept. of Research St Statistics of Federal Reserve Bank of Philadelphia.
Payrolls.

Employment.

1934
1934
Compared
Compared
Indexes.
Indexes
uUh 1933
with 1933
1932, 1933. 1934. Per Cent. 1932, 1933. 1934. Per Cent.
January
February
March
April
May
June
July
August
September
October
November
December

80.0
79.2
76.5
75.4
73.2
72.0
70.5
68.8
72.8
71.6
72.2
74.2

74.1
75.2
72.1
70.3
73.8
80.0
87.9
94.2
98.1
95.1
94.2
92.7

Average

73.9

84.0

89.0

+20.1

61.1
62.9
60.5
55.8
52.2
51.4
48.6
47.3
50.7
60.9
49.4
52.2

49.6
51.4
47.0
45.0
51.2
56.9
66.0
64.9
67.7
67.7
65.5
66.5

53.6

58.3

63.4

+27.8

Capacity of Water-Power Plants Increased About
100,000 Horsepower in 1933.
The total capacity of water wheels at water-power plants
in the United States on Jan. 1 1934, according to the annual
report just released by the Department of the Interior
through the Geological Survey, was 15,913,451 horsepower,
an increase during the year of 95,500 horsepower, or 0.6%.
Five States: New Hampshire, Massachusetts, Pennsylvania, Michigan, and Wisconsin-show an increase in
capacity of water wheels of more than 10,000 horsepower
from the figures published in the previous annual report.
Washington shows a decrease of more than 10,000 horsepower, and a few States show minor decreases, due to
abandonment of some plants and changes in capacity of others.
An estimate based on the present practice of installation
of water wheels at fully developed water-power sites indicates that water wheels with a capacity of about 80,000,000
horsepower would be required to make use of all the potential
water power in the United States. Therefore about 20%
of the Nation's water-power resources is developed at the
present time.
The complete report shows the total capacity of water
wheels in plants of 100 horsepower or more, by States and
main divisions of the United States, segregated between




Feb. 24 1934

public-utility companies and manufacturing companies, the
trend in development in different sections of the country, and
the rank of the 10 leading States in developed water-power
from 1921 to 1934.
Increase in Employment and Payrolls in Pennsylvania
Anthracite Collieries from December to January
Noted by Federal Reserve Bank of Philadelphia.
The number of workers employed in the Pennsylvania
anthracite industry increased by more than 17% and the
amount of weekly wages paid showed a gain of nearly
60% from December to January, according to indexes prepared by the Philadelphia Federal Reserve Bank from
reports received by the Anthracite Institute from 34 representative companies which operated 138 collieries in January
and employed about 89,000 workers whose weekly earnings
totaled approximately $2,864,000. The Reserve Bank
further announced:
Operating time, as measured by the number of man-hours actually
worked at the collieries of 28 companies, showed an increase of 57% in
the month. These unusual gains reflect largely increased demand for
household fuel which was stimulated by cold weather.
The index of employment rose from 53 in December to 62 in January
and was 22% higher than a year earlier. The payroll index increased
from 37 in December to 59 in January and was nearly 64% above the
level of a year ago. The rate of gain in both employment and payrolls
in January was the highest for that month in the past 13 years with two
exceptions. Monthly indexes from 1931 through January 1934 follow:
Prepared by the Department of Research and Statistics ,Federal Reserve Bank o
Philadelphia. 1923-25 Averag100.
Men Employed,
1931. 1932.
January
February
March
April
May
June
July
August
September
October
November
December
Yearly average

88.3
87.1
79.9
82.9
78.3
74.2
63.4
65.5
77.8
84.4
81.2
77.7
78.4

74.2
69.3
71.7
68.1
65.1
51.5
43.2
47.8
54.4
62.1
61.0
60 6
60.8

Payrolls.

1933. 1934. 1931. 1932. 1933. 1934.
51.1
57.2
53.1
50.3
42.0
38.5
42.7
46.4
55.2
55.3
59.4
53.0
50.4

62.3

75.0
85.5
59.6
63.1
63.9
55.9
45.0
47.2
54.4
76.3
66.6
65.6
63.2

51.5
48.0
51.3
60.4
48.6
31.4
29.0
34.6
39.4
56.0
42.7
47.1
45.0

36.3
47.7
40.9
31.3
25.2
28.8
32.0
39.0
50.9
51.6
40.1
37.2
38.4

59.4

Review of Building Situation in Illinois During January
by Illinois Department of Labor-Total Estimated
Expenditures Increased as Compared with December, While Number of Projects Decreased.
"During January 1934 building and public officials in 65
Illinois cities reported the issuance of permits for 420 building projects estimated to cost $1,793,592," states the monthly
review of the building situation in that State by Paul R.
Kerschbaum, Acting Chief of the Division of Statistics &
Research by the Illinois Department of Labor. The review
says that "these figures compared to those for December
1933 represent a decline of 3.2% in the number of projects
but an increase of 8.9% in the total estimated cost." We
further quote from the review as follows:
The increase in estimated expenditure from December to January is
sharply contrary to the usual seasonal movement. Records for tho last 12
years disclose that, on the average, estimated expenditures In January
decline approximately 20% from December totals. The total estimated
expenditure of $1.793.592 in January 1934, was 155.8% above the total of
$701,163 reported in January 1933. Building permit figures relate almost
entirely to commercial and private construction since permits are not
usually required for city, State or Federal projects.
The increase in total estimated expenditures in January was caused by a
sharp gain in additions, alterations, repairs and installations which increased from $306,391 in December to $798,422 in January, or 160.6%•
New residential building declined from $118,150 in December to $74,250
In January, or 37.2%, and new non-residential building, during the same
period, declined from $1,221,923 to $920,920, or :44.6%.
During January, permits were issued in the 65 reporting cities for a total of
15 new housekeeping dwellings, compared with 21 such dwellings planned in
December. All such structures for which permits were issued In January
were ono-family dwellings. Five of the total of 15 one-family dwellings
planned in January were to be erected in Chicago, seven in the Chicago
suburban cities, and three in the reporting cities outside the Chicago
metropolitan area.
The increase in the aggregate estimated expenditure for the State from
December to January was shared by Chicago and the group of 34 Chicago
suburban cities. The total estimated cost of Chicago projects increased
from $258,080 in December to $1,397,385 in January, or 441.5%. and that
for the group of Chicago suburban cities increased from $170.278 in December to $193.590 in January. or 13.7%. During the same period the estimated
expenditure for the group of 30 cities outside the Chicago metropolitan
area declined from $1,218.106 to $202,617, or 83.4%. Comparisons with
January 1933, disclosed gains in estimated expenditure in Chicago and in
the Chicago suburban cities, while the total estimated expenditure for
reporting cities outside the Chicago metropolitan area showed a decline
from the total for January 1933.
The large gain in Chicago estimated expenditure in January over the
preceding month was caused by sharp gains in new non-residential building,
and additions, alterations, repairs and installations. l'roposed expenditures
for now non-residential building advanced from $75,645 in December to
$832,390 in January, and during the same period the estimated cost of
proposed additions, alterations, repairs and installations increased from
$161,935 to S551.995. A pumping station estimated to cost $782,000 and
escalators estimated to cost $150,000 were largely responsible for the sharp
gains reported in these two building classifications. Proposed expenditures
for new residential buildings in Chicago declined from $20,500 in December
to the extremely low total of $13,000 in January. The indexes of Chicago

Financial Chronicle

Volume 138

building in January 1934, were 7.8 for all building, 0.2 for new rasidential
building, 8.9 for all nevi'
,non-residential building, and 64.3 for additions,
alterations, repairs and installations * (monthly average 192100.0).
In the group of34 Chicago suburban cities the total estimated expenditure
for new residential building declined from $78.800 in December to $52,800
InVanuary, or 33.0%, while that for additions, alterations, repairs and
installations decreased from $71,533 to $67,045, or 6.3%. during the same
Period. Estimated expenditures for new non-residential buildings advanced
from $19,945 in December to $73,745 in January. or 269.7%.t Fifteen of
the 34 cities included in this group reported gains in total estimated expenditure over December 1933, and 16 showed gains over January 1933.
In the group of 30 cities outside the Chicago metropolitan area the decrease in total estimated expenditures was caused by declines in new residential and new non-residential building. New residential building declined
from $18,850 in December to $8,450 in January, or 55.2%, and the expenditure for new non-residential building declined from $1,126,333 to
$14,785. or 98.7%. Proposed expenditures for additions, alterations,
repairs and installations advanced sharply from $72,923 to $179,382, or
146.0%. Fourteen of the cities comprising this group showed gains in total
estimated expenditure over December 1933, and 13 reported increases over
January 1933.
Of the total estimated expenditure authorized by permits in January,
77.9% was to be expended on Chicago projects, 10.8% on projects in the
34 reporting Chicago suburban cities, and 11.3% in the 30 reporting cities
outside the Chicago metropolitan area. During January, 4.1% of the total
estimated expenditure for the State was to be expended for new residential
buildings, 51.3% for new non-residential structures, and 44.5% for addition,
alteration, repair and installation projects.
• * The index of seasonal variation for total Chicago building for January is 60.8
and for December, 73.5.
t A permit to finish a school building In Winnetka, at a cost of $140,000, has been
omitted from the totals since this project was covered by a permit issued in June,
1931. The original permit, however, expired in 1932.

Business During January in Minneapolis Federal Reserve District Above December and Better Than
Year Ago.
In its preliminary summary of agricultural and business
conditions in the Ninth (Minneapolis) District, the Federal
Reserve Bank of Minneapolis states that "business ir the
District during January continued to be better than a year
ago, and the level of business increased from December to
January after allowance for seasonal changes.". The summary, issued Feb. 17, further noted:
The bank debits index rose from 54 in December to 58 in January. The
country check clearings index rose from 83 in December to 88 in January.
The index of less-than-carlot freight movement increased from 63 in December to 64 in January. A reverse trend occurred in miscellaneous freight
carloadings, for which the adjusted index declined from 75 in December
to 71 in January, but it will be recalled that the December index had shown
a remarkable rise over the level of preceding months.
The trade of the District continued to be stimulated by the spending of
Federal funds. Throughout the District Civil Works Administration expenditures continued to be made, and in the rural portions of the district,
the funds received from the Federal corn loans, Federal Land Bank loans
and other disbursements by United States Government agencies, together
with higher prices for farm products, had a beneficial effect. City department store sales were 13% larger in January than in the same month last
year. This compared with an increase of 10% in December and a decrease
of 3% in November as compared with the volume in the corresponding
months of the previous year. This office is undertaking to secure monthly
reports from leading stores in the agricultural communities of the District.
The first eight of these rural stores (all located in southern Minnesota) to
report for the month of January had a sales volume 32% larger than their
sales in January last year.
The majority of the other records of Northwestern business also showed
increases in January over January last year. Bank debits increased 15%
country check clearings 25%, freight carloadings, excluding 1.c.1., 29%,
building permits 195% and building contracts 162%, as compared with
January 1933. Increases also occurred in flour shipments, linseed products shipments and the movement of cattle and calves to market. Decreases occurred in grain marketings, butter output and market receipts
of hogs and sheep.
Farm income from seven important items was 18% smaller in JanUary
than in the same month last year. Our farm income estimates for these
months did not include payments from the Federal Agricultural Adjustment
program. The decreases were due to smaller marketings of grain, smaller
butter production and a reduced market movement of hogs. The majority
of prices of Northwestern farm products strengthened in January. Durum
wheat rose 12 cents, to the highest level since January 1930. The price of
butter halted the decline of the preceding two months. The prices of all
of the grains and of most classes of livestock were higher in January than a
year ago. 'The prices of butter and eggs were equal to last year's prices,
and the price of hens was below last year's price.
ESTIMATED VALUE OF IMPORTANT FARM PRODUCTS MARKETED
IN THE NINTH FEDERAL RESERVE DISTRICT.
January 1934.
Bread wheat
Durum wheat
Rye
Flax
Potatoes
Dairy products
Hogs
Total of 7 items
Butter production (pounds)

.,...

% Jan.'34
January 1933. of Jan.'33.

52,123,000
380,000
140,000
332,000
1,016,000
7,230,000
5,421,000

52,364,000
431,000
143,000
485,000
377,000
9,655,000
6,852,000

90
88
98
68
269
75
79

$16,042,000
32,852,000

820,307,000
38,143,000

82
86

Most Lines of Business in Southwest During January
Above December, According to Los Angeles Chamber of Commerce-Activity Well Over Year
Previous.
"As measured by nearly all indicators, January business
activity in the Southwest was well above that of a year ago,
and in most lines above the levels of December," states the
Los Angeles Chamber of Commerce in its "Southwest Business Review." The Chamber continues:




1307

Postal receipts were only 11
/
4% below those for a year ago, which, in
view of the difference in intra-city rates, indicates an increase in volume.
Building permits rose in number and value over both December and January
a year ago. Stock Exchange transactions were 44% above those for December and 164% ahead of last January. Bank debits were the largest in
the past six months, and 7% ahead of January a year ago.
Employment for December was 21% ahead of that for the closing month
of 1932. Among the major industries apparel and furniture have just
completed very successful semi-annual market weeks, with prospects for
spring business excellent. Motion pictures are producing at a rate that
keeps most of the studios busy. Petroleum is lining up under its regulating
schedule with prospects of a reduction of difficulties. Rubber production
is faring well under the operation of the code, with retail operations still
unsettled.
Agriculture starts 1934 with prospects of good markets and better
returns. Water commerce turned in higher totals both for value-and volume,
in January, than for a long time.

Expiration Date for Ear Corn Loans Extended to April
1-Cost of Corn Loans to Farmers Reported as Less
Than 3 Cents a Bushel.
At the request of the Secretary of Agriculture, the expiration date for granting of loans to farmers on ear corn stored
on the farm, through the Commodity Credit Corporation,
has been extended from March 1 to April 1 1934. Announcement to this effect was made Feb. 16 by the Agricultural
Adjustment Administration, which also stated:
This extension was granted to accommodate farmers in States where
there has been delay in setting up the farm warehousing machinery and for
the benefit of producers who had postponed taking advantage of the loan
offer until complete details of the Corn-Hog Contract for 1934, and the
supplementary Administrative Rulings were available.
The total amount of money loaned thus far on corn stored on the farm is
estimated as being approximately $70,000,000. Recent improvement in
corn prices at the cash markets has reduced, to some extent, the number of
farmers taking advantage of the loan offer.
Loans are being made on farm warehoused corn in States of Nebraska,
Kansas, Iowa, Illinois, Indiana, Ohio, Missouri, Colorado, South Dakota
and Minnesota. The loan rate is 45 cents per bushel,the rate of interest4%,
and the maturity date of the notes given by borrowers is Aug. 1 1934.
In Michigan and Wisconsin, where there are no farm warehousing arrangements, loans are being made up to May 1 1934 on shelled corn graded
No.3 or better with moisture content not exceeding 15%% which is stored
in grain elevators or other public warehouses approved by the Commodity
Credit Corporation.

Government to Buy Wheat for Farms-Will Supply
Stock Feed in Drought Areas.
From the New York "Herald Tribune" we take the following (United Press) from Washington Feb. 23:
The Federal Surplus Relief Corp. will release $5,000,000 immediately in
eight States to purchase wheat for distribution to needy farmers in drought
areas, Relief Administrator Harry L. Hopkins announced to-day. Allotments, Mr. Hopkins said, will be made to-day to North and South Dakota,
Minnesota, Wisconsin, Texas, Oklahoma, Kansas and Colorado. The
allocations will be made on the basis of need to provide stock feed.

Comment on Cuban Sugar Market by B. W. Dyer & Co.
-Speculation in Cuban Sugars Increasing in
Expectation of Lowering of Import Duties.
Increased speculation in Cuban sugars in expectation of
a sharp lowering of the tariff, has made sales of this class of
the commodity an unsafe guide for the fixing of spot quota,
tions according to B. W. Dyer & Co., sugar brokers and
economists. The firm announced on Feb. 17 that the
probable intent of the purchasers of Cuban sugar during the
past two weeks at prices hovering around 1.60 is to hold
such sugar until the import duty has been revised. Accordingly the firm is using the price of spot sales of duty free
sugars for spot quotations. This makes the spot price for
the past week 1.35 a pound compared with 1.42 cents average for the previous week. The firsm also announced:
With this revision the B. W. Dyer indices of sugar prices for the week
ended Feb. 16, based upon 1926 average prices as 100, are shown in the
second column under the dates and the cent price per pound in the first
column, in the following table:
(1926 Average100)
Week Ended
Week Ended
Feb. 161934.
Feb.9 1934.*
Raw sugar, cost & freight_ 1.364
1.330 51.9
53.2
Raw sugar, duty paid....__ 3.364
77.7
3.330
76.9
Refined sugar, net cash- _ 4.410 80.7
4.214
7.7.1
* Revised.

Week Ended
Feb. 171933.
.744
29.0
2.744
63.4
3.822
70.0

Commenting upon the market condition, the Dyer firm
states:
One element of President's Roosevelt's program which had not been
generally contemplated was the proposal to reduce the full duty by almost
50 cents per 100 pounds. While this proposal, when coupled with an
Increase in the Cuban preferential and quotas which should make this
preferential effective, does not alter the bullishness of the outlook for cost
and freight or in-bond values, it does implement the President's stated
intention of protecting the consumer. By making the processing tax
equivalent to the reduction in duty, it is presumed that the price to the
consumer will remain unchanged. Therefore, considering the reduction
In duty feature alone the implication would seem to be one of bearishness
for duty free sugars, the duty-paid price and the refined price,
which is
duty-paid.
However, duty is only one part of the plan, and Cuban and duty-free
sellers are likely to be influenced by:
1. The possibility tnat improved employment will increase consumption
so as fully to utilize all quotas and the realization that
even if this
not
accomplished, toe total quota from all sources is only 107.000 shortistons
in excess of 1933 consumption as calculated by our statistical department.
Even with an unchanged consumption in 1934. it would seem that a market

1308

Financial Chronicle

will be found for all the quota sugar except 107,000 short tons, which
amounts only to about 1 j. % of the quota total.
2. The possibility that Cuba will reduce the size of her crop to make it
fit into the United States picture or that the labor situation will prevent a
full production.
3. The possibility of a higher world price because of the improvement
in the world statistical position with its resulting influence on our market.
4. The possibility of sugar prices being influenced by a higher range of
general prices in this country because of recent monetary developments.

President Roosevelt's program for a system of sugar
quotas was referred to in our issue of Feb. 10, page 943.
Raw Sugar Stocks to Be Lower During Present Season
Due to Increased Consumption and Sharp Decrease in Javan Production.
Increased consumption of sugar, coupled with a sharp
decrease in Javan production, will result in a reduction of
931,000 long tons, raw sugar value, in world sugar stocks
during the present season according to reports from 70
countries, received by B. W. Dyer & Co., sugar economists
and brokers. The present season will be the third consecutive one in which a reduction in stocks has taken place,
and will result in stocks of 10,579,000 tons on Aug. 31, this
year, the end of the season, as compared with the peak
figure of 12,953,000 tons on Aug. 31 1933. The firm's
report says:
The estimates for 1933-34 are before giving consideration to the sugar
quotas proposed by President Roosevelt in his recent special message to
Congress. These quotas totaling 6,452,000 short tons or 5,761,000 long
tons are 1,102,000 long tons less than the sugar available from the respective
sources. The application of such quotas will necessitate adjustments in
the figures. Intelligent adjustment cannot be made until the effective
quota date is determined, and until the extent to which insular possessions
of the United States may reduce their crops, because of lower quotas, is
known.

Disregarding any reduction in crops which may be made
as a result of the quotas, the Dyer reports indicate a production for the present season of 25,645,000 tons compared
with 24,903,000 in the 1932-33 season. An increase in consumption is also indicated to 26,576,000 tons in the present
season as compared with 26,054,000 in the previous year.
Based on these reports of production and consumption
season-end stocks on Aug. 31, next, will amount to 39.8%
of the consumption for the 12 months. On this basis, the
relationship will fall below 40% for the first time since
the end of the 1928-29 season. The present season will also
be the first one since 1930-31 in which consumption has
exceeded that of the previous year.
The following table gives the Dyer estimates of production and consumption for the main geographical divisions
of the world together with comparisons with last season
(figures in long tons, raw sugar value):
North America
South America
Europe
Asia
Africa
Oceania

Production
-Consumption
1933-34.
1932-33.
1933-34.
1932-33.
7,223,000 6,417,000 6,858,000 6,789,000
1,902,000
1.911.000
1,557,000
1,545,000
6.884.000 6.389,000
9,183,000
9,123.000
8,065,000
8,609,000
7,819,000
7,469,000
891.000
907.000
729.000
708.000
670,000
680.000
430,000
420,000

World totals

25,645.000 24,903.000 26.576,000 26,054,000

The United States,including its territorial possessions, will
have an estimated increase of 595,000 tons, while the rest
of the world, with Java excluded, shows an estimated increase of 1,222,000 tons over last season. Java, however,
is accomplishing a record reduction this season of 1,075,000
tons, reducing her crop of last season of 1,710,000 tons to
635,000 tons this season.
Consumption of Beet Sugar in United States During
January Above Year Ago.
Beet sugar consumption in the United States continues to
increase according to B. W. Dyer & Co., sugar economists
and brokers. According to a report received from the
Domestic Sugar Bureau by the Dyer firm, distribution of
this domestically grown sugar amounted to 122,341 long tons,
raw sugar value, which shows an increase in consumption
for the month of 31,092 tons over January 1933, when
eonsumption was 91,249 tons. Under date of Feb. 14 the
company added:
This is the second consecutive month in which beet sugar consumption
has shown a large increase over the corresponding month of the previous
year. Last December the consumption was 110,015 tons as compared
with 72,238 tons in December of 1932. This amounts to an increase of
68.869 tons in the last two months.

Increases Reported in Shipments of Raw and Refined
Sugar to United States from Puerto Rico During
Period from Jan. 1 to Feb. 17 Over Year Previous.
Raw sugar shipments from Puerto Rico to the United
States totaled 91,198 short tons from Jan. 1 to Feb. 17,
an increase of 49.4% when compared with 61,024 tons
shipped during a similar period last year. Refined shipments were also higher, totaling 19,898 tons against 15,500
last year, an increase of 28.4%, according to cables to the



Feb. 24 1934

New York Coffee & Sugar Exchange. The Exchange announced on Feb. 17 that shipments of raw and refined
together for the week of Feb. 17 amounted to 37,341 against
11,068 in the same week in 1933.
Shipments of Raw Sugar from Philippines to United
States Higher-Refined Shipments Decrease.
Raw sugar shipments from the Philippines to the United
States, from Nov. 1 1933 to Jan. 31 1934, the first three
months of the current crop year, amounted to 318,066 long
tons against 294,925 tons during the same period in 1932-33,
an increase of 7.8%,according to cables to the N.Y.Coffee &
Sugar Exchange. Refined shipments for the same period
were 13,179 tons against 16,002 in 1932-33, a decrease of
17.6%. The Exchange, under date of Feb. 13, also announced:
Shipments from Jan. 15 to 31 of raw and refined together totaled 73,169
tons this year against 60,906 tons during the last half of January in 1933.
The proposed "import quota" of 1,037,000 short tons, suggested for the
Philippines in the President's message to Congress, compares with 1,350,000
tons estimated as available for continental United States from the 1934
crop after deducting local consumption.

Production of Domestic Cotton Goods During January
Higher-Increase Somewhat Larger Than That
Experienced by General Manufacturing Production.
Domestic cotton goods production registered a somewhat
larger increase during January than did the production of
general manufactures, according to the New York Cotton
Exchange Service. The index of cotton goods production
for January, based on the average rate of production in the
six years from 1922 through 1927, was 89 as against 76 in
December, 86 in January last year, 81 two years ago, 82
three years ago, and 103 four years ago, the Exchange said.
The January index of general manufacturing production
was 70 as compared with 67 in December, 63 in January
last year, 70 two years ago, 81 three years ago, and 103 four
years ago. The Exchange Service also had the following
to say under date of Feb. 19:
The January increase in cotton goods production was somewhat more than
the usual seasonal increase from December to January, while the increase
in the production of general manufactures was just about seasonal. During
the first six months of this cotton season, that is, from Aug. 1 to Jan. 31,
domestic production of cotton goods ran somewhat above the level of
general manufacturing production, with the index averaging 90 for the sixmonth period as compared with an average of 76 for the production of
general manufactures.
Tho activity in the domestic cotton cloth market, noted in recent weeks.
continued during the past week with sales of cloth by mills again exceeding
current production as measured in aggregate yardage. Print cloths sold
somewhat less freely than in recent weeks while narrow shootings were much
more active. Heavy goods continued in steady demand. Duck sales
increased. Fine gray goods in plain weaves were active. Cloth prices
advanced irregularly with increases of an eighth to a quarter of a cent
a yard recorded on some constructions. The mill position has improved
considerably as a consequence of the active cloth demand in recent weeks.
Some mills, notably in the print cloth and sheeting divisions of the industry.
are reported to be sold ahead to capacity for three months, and are do.'
dining further forward business. Unsold stocks of cloths at mills have
been further reduced. Heavy goods mills are reported to be better sold
than for a year past, with stocks materially reduced. Cotton mill activity
is being maintained, on an average, at about the January level.

1934 Cotton Adjustment Plan Declared Effective.
Acting Secretary Rexford G. Tugwell, upon recommendation of Chester C. Davis, Administrator of the Agricultural
Adjustment Act, announced on Feb. 15 that a sufficient
number of contracts had been signed in the 1934 cotton
adjustment program to warrant the Secretary of Agriculture
in declaring the program effective and accepting producers'
contracts which are in the proper form and receive administrative approval. The contract records unit was instructed to begin the task of sending individual acceptances
to producers who have signed contracts offering to reduce
their cotton acreage in 1934 by from 35 to 45%. Mr. Davis
recommended that the program be declared effective on the
basis of a report made to him by Cully A. Cobb, Chief of
the Cotton Production Section. Later advices from the
AAA reported Mr. Cobb as stating that with tabulations
(Feb. 17) of the results of the cOtton adjustment sign-up
campaign indicating that approximately 13,000,000 acres
had been rented in adjustment contracts examined to date,
there are enough contracts in sight to bring the total reduction to 15,000,000 acres or more. On Feb. 17 Mr.
Cobb was quoted as saying:
The tentative figures given on Feb. 15 were misconstrued by some as
representing the total number of acres pledged for reduction. I want to
emphasize the fact that these tabulations were entirely preliminary, as
stated at the time and represented only the available returns as of Feb. 14.
The work of tabulating had only begun then, and returns were far from
complete. The figures of that date do not include, nor do the figures
given here, the many contracts in the process of preparation, many of
which are in hands of farmers, or local committeemen. Many farmers or
corporations who own several farms have not completed their contracts
for all of their farms, but will have them completed soon.

Volume 138

Financial Chronicle

The county committees will receive numerous contracts in th enext few
days. In the meantime they are completing the compilation of those
now in their hands as fast as possible preparatory to sending them to
Washington for acceptance and payment. Up to this time all contracts
have been held in the county offices waiting the conclusion of the sign-up
campaign. This has been necessary as all contracts in each county must
be approved as a whole by the State Board of Review, and checked to
adjust possible over-runs of the allotted acreage reduction for that county
and State.
The rate at which we are receiving tabulations is indicated by the fact
that since the first tentative estimate of contracts was made on Feb. 14.
a total of 46,379 contracts, representing a total reduction of 789,000 acres,
have been reported, bringing the total number of contracted acres up to
approximately 13,000,000 acres, showing an average reduction of 37.3.3%
pledged of the total base acreage. If this ratio of reduction remains constant for all contracts received, the total reduction will amount to something more than 15,000,000 acres.

Mr. Cobb emphasized the fact that the idea of setting
Feb. 15 as the closing date of the sign-up campaign was to
give the county committees opportunity to get contracts
in order for acceptance. Producers who had not signed
contracts at that time will be allowed a few days' time to
complete their negotiations with the county committee.
President Roosevelt Indorses Principle of Compulsory
Control of Cotton Production as Proposed in
Bankhead Bill.
Indorsement of the principle of compulsory control of
cotton production was given by President Roosevelt in
letters addressed on Feb. 17 to the Senate and House Committees on Agriculture. In his letter the President approved
the aim of the pending Bankhead bill to limit cotton marketed from 1934 crop to 9,500,000 bales through Federal
taxation. The President's letter to Senator Ellison D.
Smith and Representative Marion Jones follows:

1309

months and years, the same method of computing the percentage of activity has been used. Computed on this basis
the cotton spindles in the United States were operated during
January 1934 at 98.5% capacity. This percentage compares with 73.5 for December, 96.3 for November, 101.9
for October, 99.6 for September, 106.7 for August, and 95.0
for January 1933. The average number of active spindle
hours per spindle in place for the month was 225. The total
number of cotton-spinning spindles in place, the number
active, the number of active spindle hours and the average
hours per spindle in place, by States, are shown in the
following statement.
Spinning Spindles.
Slate.

Active Spindle Hours
for January.

In Place
Jan. 31.

Active During January.

Total.

Average per
Spindle in Place.

30,967,862

25,653,324

6,970,394,758

225

19,229,778
New England States_ 10,707,014
All other States
1,031,070

17,693,360
7,271,876
688,088

5,250,263,640
1,574,706,363
145,424,755

273
147
141

1,739,852
710,158
3,122,634
840,656
3,796,534
176,484
865,034
263,956
5,536,372
993,448
5,613,254
505,934
224,702
600,540
663,766

513,738,709
125,076,568
909,719,975
183,313,283
817,814,945
53,695,456
200,638,209
53,920,664
1,453,068,397
228,578,318
1,855,311,303
157,644,650
61.284,990
190,388,416
166,200,875

269
131
272
185
142
243
178
98
237
131
323
243
225
292
186

United States

Cotton-growing states
Alabama
Connecticut
Georgia
Maine
Massachusetts
Mississippi
New Hampshire
New York
North Carolina
Rhode Island
South Carolina
Tennessee
Texas
Virginia
All other States

1,909,296
951,400
3,345,430
992,652
5,776,654
221,024
1,125,084
547,858
6,142,748
1,743,960
5,742,384
649,514
272,014
652,892
894,952

Petroleum and Its Products—Enforcement Agencies
Take Steps to Tighten Curbs on Illegal Crude
Production—Ickes to Ask New Bill from Congress
to Govern Oil Industry—Texas Passes Additional
Measures Strengthening Authority and Power of
Railroad Commission—Oil Pacts Approved.
State and Federal oil agencies moved to tighten up regulation of production and sales of crude oil and its products
during the week as an aftermath to the recent setbacks afforded to Government regulation of the industry in the
findings of several lower Federal courts that the petroleum
In Associated Press advices from Washington Feb. 17 it code was unconstitutional.
was stated that although President Roosevelt referred only
Paramount in importance was the news from Harold L.
to cotton, legislators and officials felt he would approve Ickes, oil administrator, that Congress will be asked for a
Federal compulsion where other crops were concerned should new bill which will embody the lessons learned by the oil
it be a success in the case of cotton.
administration in its operations under the petroleum code.
The Associated Press accounts (Feb. 17) also said:
In addition, Mr. Ickes said that the findings of a lower
The immediate effect of the lmter apparently was to change the attitude
Federal court in Texas ruling that the petroleum code was
of the House Agriculture Committee from one of indifference, if not hostility,
unconstitional would be taken to the United States Supreme
toward the Bankhead measure, to one of receptivity.
Hearings ended to-day and Mr. Jones said:"We will see if something can
Court as soon as possible.
be worked out."
Texas oil authorities did not lag in their moves toward
The Farm Administration already has announced the success of its voluntary control cotton plan intended to reduce cotton acreage planted this
complete control of production within the State, the February
spring to around 25,000,000. In return, the farmers who signed contracts
12th ruling of a three-judge Federal court that the Texas
are to receive benefit payments.
Railroad Commission had full authority to control the inSenator John II. Bankhead (Democrat, Alabama) and Representative
William B. Bankhead (Democrat, Alabama), however, have contended that
dustry operating within the State, affording stimulus to.
non-co-operation in the voluntary program and "cheseling" through inthemoves to eradicati "hot oil" as a market factor.
creased use of fertilizer and other means would defeat the voluntary plan's
primary purpose of making a sizable dent in the huge cotton surplus.
Under a pending bill in the Texas legislature, which is
Mr. Roosevelt agrees with them. Furthermore in his letter to-day he
reported to have full approval of the lawmakers and Goverapparently rejected the suggestion of Henry A. Wallace, Secretary of Agrinor Ferguson, the Railroad Commission will be authorized
culture, that the Bankhead bill be labeled an emergency measure.
The Secretary of Agriculture approved the Bankhead bill only after a
to obtain from oil refiners complete data in regard to the
questionnaire had shown that over 90% of Southern farmers who answered
character and sources of their crude oil supply. The bill
felt some form of control beyond the voluntary reduction was essential.
was amended to include jobbers and other dealers in gasoline
That approval, however, was lukewarm and Mr. Wallace made it clear
he was afraid the waters of compulsion were very chilly and very deep.
within its provisions. Enforcement of this bill and its proThe central features of the Bankhead bill in its latest form are: Limitation
visions
would put an absolute stop to the production and use
of the balage marketed in the 1934-35 cotton year (from Aug. 1 1934 to
of "hot oil," its proponents claim.
July 311936) to 9,500,000 bales through a tax of 75% of ite; value on all
cotton marketed above that figure.
Other bills passed by the Texas legislature in support of
Each State will be allotted the number of bales that it may market. These
the Railroad Commission include one raising the tax on crude
quotas will be figured on the basis of the State's production during the last
oil production from one-tenth cent a barrel to one-eighth
five years. Then allotments will be made to each county and each farmer
on the basis of previous production.
cent, to provide a fund for the commission to enforce its
The views of Secretary Wallace on the Bankhead bill orders, and a second, providing severe penalties for violations of the commission's orders.
were indicated in our Feb. 17 issue, page 1171.
Clarifying his statement that Congress will be asked fora new bill to regulate the oil industry, Mr. Ickes said the legal
Activity in the Cotton Spinning Industry for
January 1934.
•
staff of the oil administration is now working on legislation
The Bureau of the Census announced on Feb. 20 that, designed to "plug the loopholes" in the oil code, which
according to preliminary figures, 30,967,862 cotton-spinning will be presented to Congress shortly.
spindles.were in place in the United States on Jan. 31 1934,
The proposed measure, he continued, would place the oil
of which 25,653,324 were operated at some time during administration in more substantial and unquestionable form.
the month, compared with 24,840,870 for December, 25,- Many members of Congress previously questioning certain
423,348 for November, 25,875,142 for October, 26,002,148 phrases of the oil code are now in favor of it, he said.
for September, 25,884,704 for August, and 23,753,638 for
The proposed measure, which will follow the pattetn of
January 1933. The cotton code limits the hours of em- the Capper-Marland bill, which failed of passage last session,
ployment and of productive machinery. However, in order is being drafted as quickly as possible and, he pointed out,
that the statistics may be comparable with those for earlier "an air-tight bill" is expected because of the wide experience

"My dear Mr. Chairman:
"As you know, I have watched the cotton problem with the deepest
attention during all these months. I believe that the gains which have been
made—and they are very substantial—must be consolidated and, in so far
as possible, made permanent. To do this, however, reasonable assurance
of crop limitation must be obtained.
"In this objective, the groat majority of cotton farmers are in agreement.
I am told that the recent poll by the Department of Agriculture shows
that at least 95% of the replies are in favor of some form of control.
"My study of the various methods suggested leads me to believe that the
Bankhead bills in principle best cover the situation. I hope that in the
continuing emergency your committee can take action.
"Very sincerely yours,'
"FRANKLIN D. ROOSEVELT."




1310

Financial Chronicle

of the oil administration since it started. "We have learned
a lot and in drafting the measure, we will benefit from our
past mistakes," Mr. Ickes concluded.
With the petroleum code suffering three setbacks within
the past two weeks, Government attorneys are pushing forth
every effort to bring the case to the United States Supreme
Court as quickly as possible with unofficial reports indicating
that the nation's highest Court will receive the case on an
appeal from the lower Court's ruling early in March.
In Dallas a week ago Federal Judge William H. Atwell
dismissed complaints against several small gasoline dealers
accused of violating minimum wage rates and maximum work
hours prescribed in the code, ruling that the defendants were
engaged in purely intra-State commerce and were not subject
to the code regulations, which,as is the case with the National
Recovery Act itself, is based upon the right of Congress to
regulate inter-State commerce.
Judge Atwell's ruling followed a similar decision handed
down by Federal Judge Bryant with reference to reports
required by the Federal Oil Administration and resisted by
several small factors operating in the East Texas field. A
similar verdict was handed down a week or so ago by a
Federal judge in Chicago in a case involving the giving away
of premiums with petroleum products sold.
Notice was served in the first part of the week by Mr.Ickes
that the Government will bend every possible effort to enforce
the oil code and its provisions despite the Court decision in
Texas holding the code. Mr. Ickes characterized Judge
Bryant's decision as "a paralyzing blow at the conservation
and stabilization program embarked upon by the oil industry
and the Administration."
Pointing out that Government attorneys were now taking
the necessary steps to bring the matter to the U. S. Supreme
Court, Mr. Ickes held that serious damage might well result
to the oil industry should the findings of the lower Federal
Court be sustained.
"In the meantime," he continued, "I will do everything
that can be done in accordance with court limitations, to
prevent other States from being destroyed by a wild outpouring of Texas oil. There is far more at stake than the
interests of a selfish minority of Texas operators. The interest of every State in which oil is produced is vitally
involved. Their rights will be impaired if the reckless
conduct of a ruthless handful of Texas companies shall go
uncurbed."
Chairmen of both the Kansas Public Service Commission
and the Oklahoma Corporation Commission have personally
appealed to Mr. Ickes to prevent "a small group of lawviolating operators in Texas or elsewhere from destroying
the entire oil industry and the inter-State market," he
disclosed.
Contending that "in a few days the inter-State market for
petroleum and its products would be completely demolished,
as it was barely six months ago," if Texas were allowed to
operate wide-open, Mr. Ickes held that, under the expression
of Congress in the oil code, it is "my duty to utilize every
way remaining open to achieve that end." Every oilproducing State would be forced to join with Texas in unrestrained production should output in the Lone Star State
get out of control, Mr. Ickes concluded.
However, current actions of the Texas Railroad Commission indicate every willingness to keep the State in line with
the general program of the Federal Oil Administration.
Allowable production for the State will be held at the present
level of 926,000 barrels daily, approximately 22,000 barrels
daily less than the new England quota established Wednesday by Administrator Ickes, which becomes effective March 1.
Compared with production averaging 1,100,000 barrels
daily during March last year, production in the like month
this year presents a marked improvement and should prove a
substantial aid in the maintenance of a stable crude oil
price level.
The daily allowable was increased 99,800 barrels, effective
March 1, by Mr. Ickes who announced the change Wednesday, total daily output being lifted to 2,282,800 barrels
from the current level of 2,183,000 barrels. The increases,
attributed to the normal spring rise in consuming demand,
supersedes regulations issued Dec.20 setting allowable crude
output for the first quarter of 1934.
Increases by States follow: Texas, 63,900 barrels; Kentucky, 100 barrels; Pennsylvania, 400 barrels; West Virgnia,
200; California, 16,300; Kansas, 2,300; Louisiana, 2,500,
Michigan, 300, New Mexico, 3,100, New York, 300, Oklahoma, 3,800, Colorado, 200, Montana, 600, and Wyoming,




Feb. 24 1934

600 barrels. Arkansas was cut 800 barrels to 32,200 barrels
daily.
Completion of the marketing pacts seems to be assured
in view of the announcement of Wirt Franklin, Chairman
of the Petroleum Planning and Co-ordination Committee
that the differences within the industry had been settled
and that sufficient signatures to make the agreement effective
are now assured. The pacts will now go to Mr. Ickes for
his approval.
The ultimate fate of the marketing agreement and gasoline stabilization pool has been doubtful in recent weeks as
many operators were reporting holding aloof due to the
Court reversal suffered by the oil administration in the
Texas "hot oil" case. Fear was expressed by these factors
that should the decision be upheld and the bars on production of "hot oil" rendered useless, signatories of the agreement would be in an unpleasant and serious position.
The Planning and Co-ordination Committee also issued a
ruling clarifying steps necessary to withdraw crude oil stocks
placed in storage after Jan. 1, last.
The order provides:
"That for the reckoning period beginning Jan. 1, last,
and for subsequent reckoning periods, where operators make
net additions to their crude oil stocks in storage during such
reckoning period, the net quantities so added shall be deemed
free and subject to withdrawal from storage in future reckoning periods without further authorization, and the same
shall not be taken into account in determining net withdrawals from storage in such future reckoning periods; provided, however, that this order shall not be construed so
that stored oil purchase and taken from the seller's storage
lilt) the buyer's storage shall be excluded in computing net
additions to storage, except with the approval of the Planning and Co-ordination Committee; and provided, further,
that each net addition to storage hereunder, as well as each
net withdravid from storage, during any reckoning period,
shall be reported to the Planning and Co-ordination Committee within 20 days after expiration of the reckoning
period."
Total crude oil production in the United States last week
averaged 2,289,150 barrels daily, an increase of 4,950 barrels
over the preceding week, the American Petroleum Institute
reported. This total compared with the current Federal
allotment of 2,183,000 barrels and the new schedule of
2,282,800 barrels daily, effective March 1.
There were no price changes:
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown.)
$2.45 Eldorado, Ark.. 40
31.00
Bradford. Pa
1.03
1.20 Rusk, Tex., 40 and over
Corning, Pa_
.87
1.13 Darst Creek
Illinois
1.13 Midland District, Mich
.90
Western Kentucky
1.36
Mid-Cont.. Okla.. 40 and above... 1.08 Sunburst, Mont
1.03 Santa Fe Springs, Calif.,40 and over 1.80
Hutchinson, Tex.. 40 and over.
1.03 Huntington, Calif.. 26
8pindletop, Tex.. 40 and over
1.04
.75 Petroga, Canada
Winkler, Tex_
1.82
.70
Smackover. Ark.. 24 and over

REFINED PRODUCTS—WASHINGTON PRICE WAR ENDS—
WEAKNESS IN SOUTHERN CALIFORNIA THIRD-GRADE GAS
PRICES SPREADS TO OTHER GRADES—STANDARD OIL
OF INDIANA READJUSTS CHICAGO PRICE LEVELS.

Developments in the refined products markets this week
included the formal end of the Washington price-war with
service station gasoline prices boosted 3.3 cents a gallon,
spread of the price weakness in the southern California
area where regular and premium grades of gasoline were
reduced 1% cents a gallon following a cut in third-grade
gasoline of 1 cent andA,readjustment of prices in the Chicago
area by the Standard Oil Co. of Indiana which boosted service station gasoline prices 1 cent a gallon and at the same
time lowering tank wagon quotations a like amount.
The Standard Oil Co. of New Jersey signalled the formal
end of the price war in Washington, D. C., Tuesday with
the announcement of an advance of 3.3 cents a gallon in
service station prices of gasoline. The new prices post
third-grade at 10.8 cents a gallon, regular at 12.2 cents and,
premium at 14.3 cents a gallon, all prices exclusive of taxes.
Tank car quotations were lowered 3-10ths of a. cent to
6.3 cents a gallon to establish the correct differential.
Following an unexpected reduction of 1 cent a gallon in
third-grade gasoline prices in the southern California area
Tuesday, the weakness quickly spread throughout the entire
price structure in this section with all major companies
meeting the cut and extending the downward revisions
to include regular and premium grades which were cut
13' cents a gallon to 173/i and 193i cents a gallon, respectively. Third-grade is currently posted at 15 cents a

Volume 138

Financial Chronicle

gallon, with the exception of the Texas Co., which is quoting
14% cents.
Despite unfavorable conditions prevailing in the bulk
gasoline market in Chicago, Standard Oil of Indiana announced an increase of 1 cent a gallon in service station prices
of gasoline Wednesday, at the same time cutting the tank
wagon price by a similar amount, both changes effective
Feb. 21. Under the adjusted schedule, Chicago prices for
third-grade gas are 16.8 cents a gallon; 18.3 cents a gallon
for regular, and 20.3 cents a gallon for premium, all taxes
included.
The advance in the retail price was characterized by the
company as a "long deferred adjustment" in line with increased costs while the cut in the tank wagon quotation was
in compliance with the ruling of the co-ordinating committee
under the oil code, the price until this revision, having been
the same as at service stations, with discounts for quantity
'buyers.
Prices in the wholesale gasoline market in the Mid-west
have drifted off M to %
3 cents a gallon from their recent
tops as the market dropped under the unfavorable weather
with its accompanying cut in consumption, lack of jobber
interest and setbacks suffered by the Federal Oil Administration in ironing out the industry's sore spots.
Offerings are available from East Texas as low as 33 cents
a gallon, while Oklahoma and Kansas factors are holding
around 33 cents a gallon. With jobbers apparently bolding
ample stocks on hand, there is little demand from this
source, it was pointed out, and the unsettled tone of the
market is disturbing Mid-west trade circles. Hope,however,
is held, that the market will not sag any further and will
quickly respond to any favorable influence. With the spring
seasonal gain in demand so near, no open break is anticipated.
The price war in southern California first assumed serious
proportions the day that details of the Pacific Coast gasoline
sales cartel were made public. Mr. Ickes, in announcing
his approval, said that 25 companies, which supply not less
than 95% of all gasoline sold in the area covered in the cartel
agreement, had signed the pact. In view of the terms of the
cartel, however, it seems unlikely that any gallonage war
could grow to assume serious proportions.
Under the terms of the cartel agreement, quotas are to be
divided by states and territories. The companies signatory
to the agreement assume full individual responsibility for
price maintenance and full observance of marketing policies
under the agreement except where prevented by contracts
executed prior to November 1 1933. The agreement provides that such contracts be terminated as quickly as legally
possible.
In addition to agreeing not to construct additional retail
sales outlets in view of the over-expansion already present
in this field, signatory companies agreed not to supply gasosoline to non-signatory companies not supplied at the date
of the agreement. Maximum price differentials between
price schedules of companies, in three groups, were set up
in order to preserve relative sales position.
The companies are divided into three classifications, A. B.
and C. The seven largest units comprise group A, five
medium firms make up group B and the remainder are in the
C group, with the agreement providing that the smaller
independent units will benefit from certain gasoline price
differentials in view of the fact that they cannot compete
on the same basis with the major companies.
For example, it was pointed out that units in the C. group
would be allowed to sell low octane gasoline at retail at 1 cent
a gallon under the level posted by the major units, with a
differential of M cent a gallon on' high grade of gasoline
allowed.
While demand for gasoline in the local bulk gasoline market
was considerably depressed by the continued unfavorable
weather conditions, prices held up fairly well. Refiners are
showing little tendency to push sales through concessions in
view of the nearness of the seasonal gain in demand. Retail
prices in the local area held unchanged.
Fuel oil prices moved up in the local area as rising consumption stimulated the market and supplies diminished
under steady demand. Effective yesterday (Friday) Standard Oil of New York advanced retail prices of kerosene Y2
cent a gallon throughout its New York and New England
marketing territory.
Tank car prices of kerosene and other fuel oils moved up
X cent a gallon, also following increases of tank car postings
on Nos. 2 and 3 fuel oils of X cent a gallon, refinery. The
1i-cent allowance for barge deliveries has been discontinued.




1311

Grade C bunker fuel oil is well sustained at $1.20 a barrel,
refinery, with present conditions pointing toward a mark-up
for this item within the next month or so. Diesel oil is
firmly held at $1.95 a barrel, refinery.
Continued bad weather throughout the nation coupled
with unchecked excessive refinery operations pushed gasoline
stocks held in the United States up more than 1,000,000
barrels to 55,049,000, reports to the American Petroleum
Institute disclosed.
Price changes follow:
Tuesday. Feb. 20.-Standard Oil of New Jersey advanced service station
prices of gasoline 3.3 cents a gallon at Washington, D. C., at the same time
lowering tank wagon prices 0.3 cents a gallon.
Wednesday. Feb. 21.-All major companies followed reduction of 1 cent
a gallon in third-grade gasoline prices posted in the southern California area
late yesterday with cuts of 134 cents a gallon in regular and premium grades.
Wednesday, Feb. 21.-Standard Oil of Indiana advanced service station
prices of gasoline 1 cent a gallon, effective Feb. 23,at the same time lowering
tank wagon prices by 1 cent a gallon.
Friday. Feb. 23.-Effective immediately, Standard Oil of New York
advanced the retail price of kerosene 34 cent a gallon throughout its marketing territory. In addition, some factors boosted the tank car price of
kerosene 3.i cent a gallon in the local area with range and furnace oils marking up a similar advance.
Gasoline, Service Station, Tax Included.
New Orleans
1.20
$.17
Detroit
$ 15
New York
z 12
17
Philadelphia
.19 Houston
Atlanta
San Francisco:
.19
.17 Jacksonville
Boston
.15-17
Third grade
.18
Loa Angeles:
Buffalo
Above 65 octane- 19)4
Third grade__ .15
.183
Chicago
Premium
2134
.1734
.205
Standard
Cincinnati
14
.192 Si. Louis
Premium
.205
Cleveland
z Less taxis.
15
.19
Minneapolis
Denver
Kerosene, 41-43 Water White,Tank Car. F.O.B. Refinery.
Chicago
$.02 X-.03X New Orleans, ex_$.4X-4 X
New York:
04;4-.03;4
(Bayonne)..s.osx-.05% !Los Ans..ex_ .0434-.06 Tulsa
03
North Texas
Fuel 011, F.O.B. Refinery or Terminal.
$1.06
Gulf Coast C
California 27 plus D
N.Y.(Bayonne):
1.75-1.00 Chicago 18-22 D.. .4234-.50
$1.20
Bunker C
.80 Phila. Bunker C-1.15-1.20
Diesel 28-30 D. - 1.95 New Orleans0
Gas Oil, F.O.B. Refinery or Terminal.
1.0134
Tulsa
{ Chicago:
N. Y.(Bayonne):
$ OIX
28 plus G O.-.-$.0334-.041 32-36 G 0
U. S. Gasoline, Motor (Above 65 Octane), Tank Car Lots, F.O.B. Refinery
3.0334
Chicago
N. Y.(Bayonne):
Y.(Bayonne):
Shell Eastern Pet-$.06 New On.,ex .05 -.0534
Standard 011N.J.:
Arkansas
04 -.04
Motor, U. 8_3.06 New York:
62-83 octane__ .0534 Colonial-Beacon_ .0634 California___. 05 -.07
.06 Los Angeles,ex 0434-.07
Stand. 011 N. Y..0634 z Texas
.06 Gulf ports-- 06 X-.07
Gulf
Tide Water 011 Co .06
.04
Republic Oil
.0634 Tulsa
xRichfield 011(Cal.) .07
.05
Warner-Quin. Co_ .0634 Sinclair Refining- .06 Pennsylvania..
x Richfield "Golden." z"Fire Chief." $0.07.
Production and Shipments•of Venezuelan Crude Oil in
January 1934 Continues Higher Than in Corresponding Period a Year Ago.
Crude oil production in Venezuela in January 1934 totaled
10,859,771 barrels of 42 gallons each, as compared with
9,698,964 barrels in the same month last year, 9,589,088
barrels in the corresponding period in 1932 and 11,084,419
barrels in December 1933, according to "O'Shaughnessy's
Oil Bulletin." Shipments in January 1934 amounted to
9,844,000 barrels as against 10,557,800 barrels in the
preceding month and 9,581,700 barrels in January 1933.
Comparative statistics follow:
PRODUCTION AND SHIPMENTS OF VENEZUELAN OIL.
[In Barrels of 42 Gallons Each.]
Shipments.
Production.
1932.
1933.
1934.
1933.
1932.
1934.
10,859,771 9,698,964 9,589,088 9,844.000 9,681,700 9,087,000
8,660,600 8.546,100
Feb_
8,833,778 8,994,242
10,076.000 9,949,300
9,944,518 9,998,250
March_
9,340,400 11,004,200
April_
9,058.356 10,480,750
9,624,000 11.260,000
9.133,045 10,648,460
May _
8,221,600 10,313,300
9,262,374 10,578,631
June _
9,635.500 8,394.200
July__
10.052,418 9,550,761
10.146.200 8,123,600
Aug
10,309,267 9,429,632
9,959,200 8,087,300
10,181,844 8.802,687
Sept10,096,000 7,794,100
Oct10,728,228 9,171,320
10,398,100 8,377,280
Nov__
10,716,502 8,766,670
Dec..
10,557,800 9,103.700
11,084,419 9.309,368
Tot. yr119,003,713 115,319,859
116,297.100 110.040,080
Month.

Slight Increase in Crude Oil Output Shown for Week
Ended Feb. 17 1934-Figures Continue Higher
Than in Corresponding Period Last Year-Inventories of Gas and Fuel Oil Stocks LowerStocks of Motor Fuel Gain.
The American Petroleum Institute estimates that the
daily average gross crude oil production for the week ended
Feb. 17 1934 was 2,289,150 barrels, an increase of 106,150
barrels over the allowable figure effective Jan. 1 1934 as
set by Secretary of the Interior Ickes. This also compares
with 2,284,200 barrels per day produced during the week
ended Feb. 10, a daily average of 2,229,450 barrels during
the four weeks ended Feb. 17 and an average daily output
of 2,082,650 barrels during the week ended Feb. 18 1933.
Inventories of gas and fuel oil were reduced 1,130,000
barrels, or from 111,191,000 barrels at Feb. 10 to 110,061,000

1312

Financial Chronicle

barrels at Feb. 17 1934. In the preceding week inventories
were off 2,029,000 barrels.
Further details, as reported by the American Petroleum
Institute, follow:
A further increase was reported in country-wide stocks of motor fuel
in the seven days ended Feb. 17 of 1,020,000 barrels. Stocks on hand
at all points on the latter date amounted to 55,049,000 barrels, as against
54,029,000 barrels at Feb. 10 last and 55,757,000 barrels on Feb. 1 1933.
Imports of crude and refined oils in the week ended Feb. 17 1934 totaled
922,000 barrels, a daily average of 131,714 barrels,compared with a daily
average of 82,143 barrels in the preceding week and 104,250 barrels in
the four weeks ended Feb. 17.
Receipts of California crude and refined oil at Atlantic and Gulf Coast
Ports for the week ended Feb. 17 totaled 616,000 barrels, a daily average
of 88.000 barrels, compared with a daily average of 21.143 the week before
and 60,071 in the last four weeks.
Reports received for the week ended Feb. 17 1934 from refining companies controlling 92.4% of the 3.616,900-barrel estimated daily potential
refining capacity of the United States, indicate that 2,224,000 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 31,026,000 barrels
of gasoline and 110,061.000 barrels of gas and fuel oil. Gasoline at bulk
terminals, in transit and in pipe lines amounted to 20,588,000 barrels.
Cracked gasoline production by companies owning 95.1% of the potential
charging capacity of all cracking units. averaged 433,000 barrels daily
during that week.
DAILY AVERAGE CRUDE OIL PRODUCTION.
(Figures In Barrels.)
Actual Production.
Federal
Arerage
Agency
4 Weeks
Allowable Week End. Week End. Ended
Effectice
Feb. 10
Feb. 17
Feb. 17
1934.
Jan. 1.
1934.
1934.
448,800
110,000

)klahoma
Kansas
?anhandle Texas
Korth Texas
West Central Texas
West Texas
East Central Texas
East Texas
3onroe
3outh west Texas
:metal Texas (not Including Conroe)
Total Texas

884,000

Korth Louisiana
oastal Louisiana

.-

Total Louisiana

Week
Ended
Feb. 18
1933.

495,100
115,000

504,950
106,200

462,700
109,250

427,950
102,450

47,350
54,850
28,100
129,000
43,250
413,450
47,200
43,450

40,150
53,100
25,000
129,150
43,100
410,200
48,800
41,300

43,000
53,450
25,100
129,100
43,100
404,400
47,450
43,800

36,900
46,350
25,450
158,000
58,750
300,050
28,900
49,500

110,800

109,750

109,600

105,350

915.450

898,550

898,800

809,250

28,250
45.150

27,650
47,500

27,900
45,900

28,760
33,600

69,300

73,400

75,150

73,800

62,350

krkansas
Eastern (not Incl. Mich.)_..
dichlgan

33,000
94,200
29,000

31,600
90,950
27.700

31,250
92,900
27,550

31,550
93,300
25,450

31,650
89,450
14,600

Wyoming
vIontana
3olorado

29,000
6,800 •
2,300

30,150
5,100
3,000

30,000
5,300
2,850

30,050
5,200
2,850

31,400
5,550
2,650

TotalRocky Nitn.States
Kew Mexico
3alifornia

38,100

38,250

38,150

38,100

39,600

41,200
437,600

41,600
460,100

41,800
487,900

41,550
454,950

37,050
468,300

2.183.000 2.289.150 2.284.200 2.229.450 2 ns2 650

Total

Notes.-The figures Indicated above do not Include any estimate of any oil which
might have been surreptitiously produced.
The following paragraphs are quoted from the official order of the Department
of the Interior, approved and promulgated Dec. 20 1933.
"There shall be no net withdrawals of crude oil from storage during the months
of January. February and March 1934. except in special cases upon the recommendation of the Planning and Co-ordination Committee, and the approval of the
Petroleum Administrator. The period from Jan. 1 1934 to March 31 1934 incl.,
shall constitute the reckoning period for the determination of net withdrawals.
"Excess production or withdrawals from storage of crude oil In any State during
the months of October. November and December 1933 shall be charged against
the allowable of the State for the months of January. February and March 1934."
CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS AND GAS AND FUEL
OIL STOCKS WEEK ENDED FEB. 17 1934.
(Figures In barrels of 42 gallons each.)
Daily Refining Capacity
of Plants.

Crude Runs
to SUM.

District.
Reporting.
Potential
Rate.
East Coast-.
AppalachianInd., Ill., Ky.
Okla.,Kan.,M0.
Inland Tema__
Texas Gulf____
Louisiana Gulf_
No.La.-Ark._.
Rocky Mtn_ _....
California

582,000
150,800
436,600
462,100
274,400
537,500
182,000
82,800
80,700
848,200

Total.

%

%
Daily OyerAverage. aged.

582,000 100.0 449,000
139,700 92.6
83,000
425,000 97.3 313,000
379,500 82.1 238,000
185,100 60.2
88,000
527,500 98.1 443,000
162,000 100.0 112,000
76,500 92.6
56,000
63,600 78.8
30,000
821,800 98.9 412,000

a Motor
Fuel
Stocks.

Gas and
Fuel Oil
Stocks.

77.1 15,806,000 4,788,000
59.4 1,893,000
874,000
73.6 8,077,000 3,733,000
62.7 5,869,000 3,116,000
53.3 1,274,000 1,899,000
84.0 5,081,000 5,115,000
69.1
1,751,000 1,448,000
73.2
293,000
621,000
47.2 1,061,000
749,000
50.1 13,944,000 87,918,000

Totals week:
.
Feb. 17 1934_ 3,616,900 3,342,700 92.4 2,224,000 68.5 c55,049,000 110,061,000
'pre, 10 1054 a RIR 00(1 a 242 7iin 02 4 2 925 nnn RR 0 hAd MO 111111 111
,n, ',,n
a Below are set out est mates of total motor fuel stocks in U. S. on Bureau of
Mines basis for week of Feb.17. compared with certain February 1933 Bureau figures:
A. P. I. estimate on B. of M. baols, week of Feb. 17 1934
A. P. I. estimate on B. of M. basis, week of Feb. 10 1934
U. S. B. of M. motor fuel stocks. Feb. 1 1933
55,757,000 barrels
U. S. B. of M. motor fuel stocks. Feb. 28 1933
58,781,000 barrels
b Includes 30,219,000 barrels at refineries, 20,410,000 barrels at bulk terminals
in transit and pipe lines, and 3,400,000 barrels of other fuel stocks.
c Includes 30,026,000 barrels at refineries, 20,588,000 barrels at bulk terminals,
In transit and pipelines, and 3,435,000 barrels of other motor fuel stocks.
a Because of the many changes made by companies in their method of reporting
Locks to the American Petroleum Institute, it has been decided to discontinue our
attempt at estimating figures on a Bureau of Mines basis until further notice.

Secretary Ickes to Continue Oil Code Enforcement
Despite Adverse Decision by Texas Court-Plans
to Bring Case Before Supreme Court-Administrator Declares Interest of Every State Is Involved.
Despite a decision by a United States District Court in
Texas that the oil code is unenforceable in intra-State




Feb. 24 1934

commerce, Secretary Ickes, Oil Administrator, said Feb. 19,
that the Government will continue to exert every effort to
enforce the code and orders curtailing crude production.
Mr. Ickes said that the Court's decision "struck a paralyzing blow at the conservation and stabilization program
embarked upon by the oil industry and the Administration."
He stated that he had instructed attorneys of the Petroleum
Administrative Board to bring the questions involved before
the Supreme Court. His statement as given in a Washington account to the "Wall Street Journal" of Feb. 19, follows
in part:
While the decision handed down Tuesday (Feb. 13) held the code and
hope it will prove to be only a temporary set-back and will not result in wrecking the program. Under
present laws and by virtue of this decision the Government's hands are
virtually tied. Our agents can only sit by and watch violations in Texas
that will play havoc in other States.
In the meantime, I will do everything that can be done in accordance
with court limitations, to prevent other States from being destroyed by
a wild outpouring of Texas oil. There is far more at stake than the interests of a selfish minority of Texas operators. The interest of every
State in which oil is produced is vitally involved. Their rights will be
Impaired if the reckless conduct of a ruthless handful of Texas companies
shall go uncurbed.
Homer Hach, Chairman of the Kansas' Public Service COMMISSIOn. and
Paul Walker, Chairman of the Oklahoma Corporation Commission, personally have presented an appeal for their States that the administrator
shall not permit a small group of law-violating operators in Texas or elsewhere to destroy the entire oil industry and the inter-State market. Others
have telegraphed and written similar appeals to me.

regulatory orders unconstitutional, I

No Other State Could Stand Idly By.
Accurate figures prepared by the U. S. Bureau of Mines prove conclusively that 85% of the crude petroleum products in Texas move into the
National, inter-State market. Should Texas' production be allowed to
upset the balance between supply and consumptive market demand, as
established by the Oil Administration, through proven figures, chaos
would result.
No other State could be expected to stand idly by and allow Texas to
seize unjustly another State's fair share of the demand needs. The other
States would open their wells, the lid would be off, and the law of the
jungle again enforced. We have but recently gone through some three
years under the law of the jungle and we know the destruction and calamity
that follow it. Texas would be wrecked as well as the other States, and
in a few days the inter-State market for petroleum and its products would
be completely demoralized, as it was barely six months ago.
In Section 9 (C) of the NIRA, Congress declared as its policy that the
movement of "hot" or illegally produced oil in inter-State commerce shall
be prohibited. Congressional representatives of the oil-producing States
championed this declaration. In view of the expression of Congress,
re-enforced by the industry in the oil code, that the menacing flow of hot
oil must be stopped, I feel that it is my duty to utilize every way remaining
open to achieve that end.

Regulations for Removal of Crude Oil Stocks in Storage
Are Simplified-Code Committee's Order Retroactive to Jan. 1.
The Planning and Co-ordination Committee of the petroleum industry has approved an order simplifying the procedure for the removal of crude oil stocks placed in storage
after Jan. 1, and permitting future withdrawals of such
stocks without formal authorization, according to an announcement Feb. 19 by Wirt Franklin, Chairman of the
Committee. The new regulations do not apply to stored oil
which is purchased and transferred from the seller's storage
into the buyer's storage. Mr. Franklin also announced that
the new regulations were approved by the Committee Feb.
16 but were made retroactive to apply to withdrawals after
Jan. 1. The order is given below.
Resolved That for the reckoning period beginning Jan. 1 1934, and
for subsequent reckoning periods, where operators make net additions to
their crude oil stocks in storage during such reckoning period, the net
quantities so added shall be deemed free and subject to withdrawal from
storage In future reckoning periods without further authorization, and the
same shall not be taken into account in determining net withdrawals from
storage in such future reckoning periods;
Provided, However, That this resolution and order shall not be construed so that stored oil purchased and taken from the seller's storage into
the buyer's storage shall be excluded in computing net additions to storage.
except with the approval of the planning and co-ordination committee; and
provided, further, that each net addition to storage hereunder, as well as
each net withdrawal from storage, during any reckoning period, shall be reported to the planning and co-ordination committee within 20 days after
expiration of the reckoning period.

Daily Allowable Oil Output Increased 99,800 Barrels
for March-Secretary Ickes Says Estimates of
Spring Demand Justify Rise in Previously Announced Rate.
Daily allowable oil production will be increased 99,800
barrels, effective March 1, according to an announcement
Feb. 21 by Secretary Ickes, who modified an order of Dec.
20, which fixed the allowables for January, February and
March at 2,183,000 barrels daily. Mr. Ickes sa'd that
estimates by the Department of Interior indicated that the
usual spring increase in consumptive demand justified a rise
of crude production in March. Associated Press Washington advices (Feb. 21) added the following details of the
new order:

Texas, containing the huge east Texas field and several other flush production areas, was given the largest share of the increase, 63,900 barrels,
raising the States allowable from 884,000 barrels to 947,90Q.
Other new daily averages in barrels were Illinois, 12,000; Indiana, 2,000;
New York, 9,300; Kentucky, 12,100; Ohio, 12,000; Pennsylvania, 36,600;
West Virginia, 11,200; Arkansas, 32,200; California, 453,900; Kansas, 112,300; Louisiana, 71,800; Michigan, 29,300; New Mexico, 44.300; Oklahoma,
456,400; Colorado, 2,500; Montana, 7.400; Wyoming, 29,600.
The new schedules are effective as of 7 a. m.(in each time belt), March 1.
The allowables for Illinois, Indiana and Ohio were the same as set Dec. 20.

Texas Railroad Commission Refuses to Increase State's
Allowable Oil Output.
The Texas Railroad Commission (Feb. 20) refused a request by oil operators to increase the daily allowable production about the current 947,000 barrels. The decision
was handed down after a two-day hearing on the State's
allowable output. E. B. Swanson, Chief Economist of the
petroleum division of the United States Bureau of Miner,
told the Commission that the market demand for Texas
crude oil will be substantially higher next month than at
the present time.
Production of Portland Cement in January 1934
Increased 27.8% Over Same Month Last Year
Shipments Up 51%-Inventories 5.3% Below Jan.

31 1933 Figures.
According to the United States Bureau of Mines, Department of Commerce, the Portland cement industry in
January 1934 produced 3,779,000 barrels, shipped 3,778,000
barrels from the mills, and had in stock at the end of the
month 19,541,000 barrels. Production of Portland cement
in January 1934 showed an increase of 27.8% and shipments an increase of 51% as compared with January 1933.
Portland cement stocks at mills were 5.3% lower than a
year ago. The factory value of the shipments from the
mills in 1933-64,086,000 barrels-is estimated as $83,965,000.
In the following statement of relation of production to
capacity the total output of finished cement is compared
with the estimated capacity of 163 plants at the close of
January 1934,and of 165 plants at the close of January 1933.
RATIO (PER CENT) OF PRODUCTION TO CAPACITY.
Jan. 1933. Jon. 1934. Dec. 1933. Nov. 1933. Oct. 1933.
The month
The 12 months ended

15.5%
23.6%

16.6%
23.9%

12.9%
27.6%

21.2%
23.9%

22.1%
24.5%

PRODUCTION, SHIPMENTS. AND STOCKS OF FINISHED PORTLAND
CEMENT, BY DISTRICTS, IN JANUARY 1933 AND 1934 (IN THOUSANDS OF BARRELS).
Production.

District.
Eastern Pa., N. J. & kid
New York & Maine
Ohio, western Pa. & W. Va
Michigan
Wis., Ill., Ind. & Ky
Va., Tenn., Ala., Ga., Fla. & La_
Eastern Mo.,Is.. Minn.& S.Dak
W. Mo., Nob., Kan.,Okla.& Ark
Texas
Cob., Mont., Utah, Wyo.& Ida.
California
Oregon & Washington
Total

Shipments.

Stocks at End
of Month.

1933. 1934. 1933. 1934. 1933. 1934.
580 3,599 3.704
532
684
416
119 1,529 1,608
122
44
217
294 3,029 2,446
191
66
214
188 1,529 1,567
64
111
105
291 2,633 2,010
147
434
613
414
456
630 1,497 1,259
340
196 2,383 2,829
110
531
242
245
308 1,738 1,736
353
217
285
264
646
195
484
255
126
79
446
134
____
365
281
692 1,040 1,019
699
339
90
32
555
72
514
2,958

3,779

2,502

3.778 20,624 19,541

PRODUCTION, SHIPMENTS, AND STOCKS OF FINISHED PORTLAND
CEMENT,BY MONTHS,IN 1933 AND 1934(IN THOUS.OF BARRELS).
Month.
January
February
March
April
May
June
July
August
September
October
November
December

1313

Financial Chronicle

Volume 138

Production.
1933.
2,958
2,777
3,684
4,183
6,262
7,804
8,609
8,223
5,638
5,037
4,672
3,526

1934.
3,779

Shipments.
1933.
2,502
2,278
3,510
4,949
6,709
7,979
8,697
5,994
6,517
6,750
4,463
3,738

1034.
3,778

Stocks at End of Mo.
1933.
20,624
21,125
21,298
20,542
20,117
19,936
19,848
22,078
21,216
19,502
19,709
al9,541

1934.
19,541

64.086
63.373
Total
a Revised.
Note.-The statistics above presented are compiled from reports for January
received by the Bureau of Ilium from all manufacturing plants except two, for
which estimates have been included in lieu of actual returns.

Large Foreign Sales of Copper: Demand Here InactiveLead Business Improves.
The "Metal and Mineral Markets" for Feb. 22 is authority for tho statement that encouraging news in the trend of
business in the United States has created a better feeling in
non-ferrous metals circles, and the general tone of the market
appears to be quite steady. Lead sold in larger volume in the
domestic trade in the week ended yesterday than in recent
weeks, but buying of copper and zinc remained low. Fabricators of copper, however, see continued improvement in
the demand for their products, and actual movement of the




metal into consumptive channels is expected to be larger
during February than in the preceding month. Galvanizing
and tin-plate operations are expanding. Silver met with
support from speculators, and the open-market quotation
made a new high for the movement during the last week.
With steel operations up to 43.6% of capacity, against
32.5% a month ago, the movement of materials entering
into the production of ferro-alloys is increasing. The same
publication goes on to say:
Domestic Copper Quiet.
Contrasted with the active state of the foreign marketfor copper,domestic
business was rather insignificant in the week that ended yesterday. With
the code hearing less than a week away, and uncertainty existing as to what
may develop in connection with the various provisions for regulating the
industry, domestic consumers could not be induced to take on copper. The
price held at Scents delivered. H.0. King, the administrator in charge of
the copper code, is said to entertain some hope that the industry can be
Induced to come back to the original idea of accepting a code similar to the
document submitted Jan. 20. Copper producers are not at all optimistic
about an early agreement on the points touched on in that instrument.
Opinion in the trade seems unanimous that production of copper will be
held down to the current rate of output.
Foreign buying of copper was in heavy volume. Based on business reported to "Metal and Mineral Markets," purchases for foreign account in
the last week must have been well in excess of 20,000 tons. Buying abroad
has been active during the last month. A combination of circumstances is
influencing the foreign buyer, including an increase in business activity,
war talk, and the unsettled monetary situation in a number of European
countries. The fact that stocks of copper are being reduced abroad is taken
as an indication in some quarters that the metal is moving into consumption.
World stocks ofrefined copper at the end of January,as reported privately
to members of the Copper Institute, totaled 635,500 tons, against 642,000
tons a month previous, and about 750,000 tons a year ago.
World production of refined copper during January amounted to 91,000
tons, against 97,000 tons in December.
Deliveries in the United States totaled 31,000 tons, against 25,000 tons
(revised) in December. Foreign deliveries came to 66.500 tons in January.
against 68,500 tons in December.
Production of copper from scrap in the United States during January was
9,000 tons, against 8,500 tons in the month previous. Mine output in this
country was 18,000 tons, against 15.500 tons in December.
The January copper statistics attracted moderate interest, in that stocks
of refined metal held abroad decreased by fully 12,000 tons during January.
contrasted with a gain here of almost 5,500 tons.
Good Sales of Lead.
Demand for lead improved substantially last week, the sales total being
about double that for the preceding seven-day period. Considerable February business was booked, indicating buying against immediate requirements. Battery manufacturers and pigment interests were particularly
active in acquiring metal. Although refined stocks increased last month
by about 4,600 tons, the general feeling in the trade was that the statistics
have revealed some betterment in the position of the metal, compared with
that of a month ago: shipments had increased, production declined, and the
tonnage of metal added to stocks had fallen off by two-thirds. Further
curtailment in output was evident in the announcement made yesterday by
the St. Joseph Lead Company to the effect that on March 1 the operating
time at its southeast Missouri properties would be so reduced that lead
production there would decline by about 17%.
Sales of lead for February shipment, according to statistics circulating
in the industry, total about 25,000 tons; those for March shipment have
reached about 17,000 tons.
The United States refined lead statistics for December and January,
released yesterday by the American Bureau of Metal Statistics, are summarized as follows, all figures in short tons:
January.
December.
Production34,818
36.649
Domestic ore
3.752
4,656
Secondary and Foreign
Totals
Stock at beginning
Stock at end
Domestic shipments

41,305
187.814
203.061
26,034

38,570
203.061
207,674
33,911

Zinc Quiet but Firm.
Under the influence of a firm market for concentrate, and on prospects
of Increased buying by galvanizers in the near future, sellers of Prime
Western zinc held out for 4.40 cents., St. Louis, throughout the week.
Some producers seemed anxious for a higher market, but others maintained
that buying will have to increase before an uplift in quotations is warranted.
Also, there is still some distrust about the ability of producers of concentrate
in the Tri-State district to hold production in check.
Correction.-London zinc, three months, was E15 1-16 on Jan. 30, and
not £153- as published in the Feb. 1 issue. This changes the January
average for three months zinc in London to £14,943.
Moderate Trading in Tin.
A moderate consumer business was transacted in the tin market during
the last few days, with several hundred tons of the metal changing hands on
Tuesday. Tin-plate operations are reported to be holding at about 60%
of capacity, and if this rate is maintained or increased, expectations are that
buying in that direction will develop soon.
Chinese 99% tin was quoted as follows: Feb. 15th, 50.225c.; 16th,
50.650e.: 17th, 50.700c.; 19th, 51.200c.; 20th, 50.500c.; 21st, 51.000c.

Steel Operations Continue to Increase-Price of Steel
Scrap Again Advances.
The American Iron & Steel Institute on Feb. 19 1934
announced that telegraphic reports which it had received
indicated that the operating rate of steel companies having
98.1% of the steel capacity of the industry would be 43.6%
of the capacity for the current week, compared with 39.9%
last week and 32.5% one month ago. This represents an
increase of 9.3% over the estimate for the week of Feb. 12
1934. Current operations are at the highest rate since the
Institute began to issue its weekly tabulation of production
on Oct. 23 last. Weekly indicated rates of steel operations
since the latter date follow:

1314
1933.
1933.
Oct. 23
31.8% Nov.27
26.8%
Oct. 30Dec. 4
28.3%
Nov. 6
25.24 Dec. 11
31.5%
Nov.13
27.1% Dec. 18
34.2%
Nov.20
26.9% Dec. 25
31.8%

Financial Chronicle
1934.
1934.
Jan. 1
29.3% Feb. 5
37.5%
Jan. 8
30.7% Feb. 12
39.9%
Jan. 15
34.2% Feb. 19
43.6%
Jan. 22
32.5%
Jan. 29
34.4%

Gaining momentum on several fronts, the marshalled
forces of recovery have pushed the steel operating rate up
to 443/2% this week, a gain of 33/i points over last week and
253' points over the corresponding week of 1933, reported
the 'Iron Age" of Feb. 22, which further went on to say:

Feb. 24 1934

schedules there again increased briskly, 10 points to 70%. Manifesting
the broadening character of demand, however, the steelworks rate in all
other districts either rose 1 to 534 points, or held recent high levels.
Actual and. prospective tonnage from major consuming lines has expanded. Demand from the automobile industry appears insatiable, and
there is evidence that manufacturers not only are taking all the finished
steel they can obtain for this quarter but also are seeking to accumulate
stocks for the second quarter, confronted with possible price advances and
labor difficulties. More sheet and strip makers are announcing March 1
as the deadline on automobile specifications, some already having placed
such restriction in effect.
Railroads are more active in specifying steel products to replenish depleted stocks. The Pennsylvania's orders for material with which to build
6,500 freight cars in its own shops will release shortly 72,000 tons to 21
companies,in addition to the steel recently placed for 500 freight cars.
Rail mill operations remain comparatively light, despite the expiration
date March 1 on the $36.373i price of rails negotiated by makers with
Washington officials last fall. New York Central Is to open bids on 40,000
tons Feb. 28,and Erie RR.is expected to place 30,000 tons, possibly before
March 1. Chesapeake & Ohio is inquiring for 500 tons of screw spikes.
Lackawanna has been granted a Public Works Administration loan to buy
25 locomotives and 500 hopper cars, and to rebuild 20 locomotives and 986
boxcars.
Prospects in the structural shape market are improving steadily, with
Inquiries and orders accumulating for spring delivery. Featuring awards
for the week, amounting to 34,000 tons, are 15,000 tons released by the
Pennsylvania railroad for its electrification program on tentative orders
issued before the depression set in, and 6.700 tons of shapes and reinforcing
material for the Choptank river bridge, Cambridge, Md.
Washington officials who looked first for railroad equipment and machine
tool orders when the Russian government was recognized, now. expect
contracts for oil refinery equipment,tanks and line pipe to develop shortly,
40,000 tons of pipe awaiting completion of financing arrangements.
Inquiries from oil companies in the United States are heavier, and more
construction work by this industry is taking form. Army engineers at Kansas City, Mo.,have awarded 3.500 tons of plates for a welded steel pipe line.
With the date for opening books for second quarter approaching, steelmakers last week were consulting with National Recovery Administration
authorities on new schedules, which increased the conversion differentials
over semi-finished. A tentative program listed advances from $2 to $.3 on
billets and sheet bars and from $3 to $7 on strip and sheets.
Several more blast furnaces are being made ready for operation, as ritg
iron shipments continue upward. Basic iron has been reduced 50 cents a
ton at Neville Island, Pittsburgh, to meet a local competitive situation.
Scrap at Pittsburgh has risen 75 cents a ton.
In addition to the rise in steelworks operations at Pittsburgh last week,
the rate advanced 5 points to 79 at Cleveland; 5% to 42M , Buffalo; 3 to
27g. eastern Pennsylvania; 1 to 38. Chicago; and 1 to 45, Youngstown.
Detroit held at 79%;New England,82; Wheeling,69; and Birmingham,52.
Steel ingot output in Great Britain in January was 6% higher than in
December,and pig iron production up 7.8%, according to "Steel's" London
cablegram. British pig iron and steel bar prices have been advanced.
"Steel's" iron and steel price composite is unchanged at $32.42;'Wished
steel remains 351.10, while the scrap figure is up 25 cents to $11.83.

Automotive demand is still the chief single factor in the rise of steel
activities. With evidences that this will be even augmented, with the
Public Works Administration millions now beginning to penetrate basic
Industries and with the railroad rehabilitation program in definite action.
the steel industry is expectant of well sustained demand and weekly increases in volume.
A decided seller's market has developed for cold-finished sheets, due
to the desire of motor car makers to cover present requirements. Mill
capacity for this commodity is now well taxed for the remainder of the
quarter, one large producer having been obliged to refuse a 1,000-ton
order during the past few days. Added to the demand from automotive
centres has been the urge of automatic refrigerator makers to cover their
sheet requirements. Strip steel specifications are also heavy, but mill
capacity on this line is in position to take care of demands.
Shortages of bodies, parts and materials are hampering the expansion
of motor car assemblies, operations this week being approximately on the
same level as last. Stamping plants in southern Michigan are booked
to capacity with the overflow from automobile works, and in the Chicago
district malleable iron shops already well engaged on automobile work
have had to refuse railroad business.
With the current year pointing to an output of at least 3,000,000 cars
and with expectations of a 4,000,000-car production in 1935, some automobile companies are now figuring their tooling programs for next year.
One company is expected, within the next six weeks, to ask for bids on
tools and equipment aggregating between $6,000,000 and $8,000.000.
Normally, equipment orders for the ensuing year are not placed until the
previous July or August.
Production during this year of 12,775 freight cars, 100,000 tons of rails.
30 locomotives and 163 passenger cars will result from contracts currently
placed by the Chesapeake & Ohio, Erie, Northern Pacific, Pennsylvania,
and the New York Chicago & St. Louis railroads, based upon PWA loans
aggregating approximately $40,000,000. Going ahead with its program
of electrification, the Pennsylvania is preparing a series of quick releases
for steel to follow that of 15,000 tons announced last week. This carrier
has also distributed orders for 1.000,000 pounds of copper wire.
Books for the second-quarter deliveries of iron and steel will be opened
March 1. The filing of price changes, if such were contemplated, was
to be made on Feb. 19. Inasmuch as no changes of consequences were
filed by that date, present prices will carry into the second quarter. This
would indicate that steel makers hope to counterbalance their present
higher costs and the accompanying losses through the economies of increased volume.
The present price of $36.3734 per ton for steel rails will expire on March 1,
unless producers agree to extend the time for placing rail orders at this
price. No action to this end has yet materialized. Rail orders under the
Steel ingot production fot the week ended Feb. 19 is placed
Eastman plan thus far placed approximate 330,000 tons, with an additional
at approximately 42% of capacity, according to the "Wall
270,000 tons actively pending.
Street Journal" of Feb. 20. This compares with 3934%
Important changes in National Recovery Administration policy and possibly some decentralization may follow the public cohearing on Feb. 27,
in the previous week and 36%% two weeks ago. The
and the subsequent general code conference commencing March 5. Due
"Journal" further stated:
to the fact that the chief industrial unemployment residuum is now in the
For the United States Steel Corp. the rate is estimated at 38%. against
capital goods industries, these industries will probably be excepted from
35% in the week before. and 32% two weeks ago. Independents are
resulting changes in hours and wages.
credited with 44;1%, compared with 42% in the preceding week,and 40%
Fabricated structural steel awards this week totaled 14.925 tons. comtwo weeks ago.
pared with 11,650 tons last week. Consumption of Lake Superior ore in
The following table gives the percentage of production for the nearest
January was 1,656,303 tons as compared with 661,116 tons in January 1933.
corresponding week of previous years, together with the approximate
The "Iron Age" composite steel scrap price has been advanced this
change
from the week immediately preceding:
week to $12.25 per ton. There is no change in the composites for finished
steel or pig iron.
Independents.
Industry.
U. S. Steel.
THE "IRON AGE" COMPOSITE PRICES.
Finished Steel.
1933
16
23 +1
20 + 14
1932
2814- .i4
2614-1
2634
Feb. 20 1934, 2.0280. a Lb.
Based on noel bars, beams, tank plates
1931
52 -1
49 +2
5014+1
One week ago
2.0280. wire, rails, black pipe and sheets.
1930
81
+114
8514+2
77
+1
One month ago
2.0280. These products make 85% of the
1929
90 +1
86 +2
8815+134
One year ago
1.9230. United States output.
1928
84 -1
90
78 -2
High.
Low.
1927
8354 -I-214
91 +214
7514+214
1934
2.0280. Jan. 2
2.028c. Jan. 2
1933
2.0380. Oct. 3
1.887e. Apr. 18
1932
1.9770. Oct. 4
1.9260. Feb. 2
Production of Bituminous Coal and Anthracite
1931
2.0370. Jan. 13
1.9450. Dec. 29
1930
2.273c. Jan. 7
2.0180. Den. 9
Increased During Week Ended Feb. 10 1933.
1929
2.3170. Apr. 2
2.273c. Oct. 29
1928
22860. Dee. 11
According to the United States Bureau of Mines, De2.2170. July 17
1927
24020. Jan. 4
2.2120. Nov. 1
partment of Commerce, estimates show that during the
Pig Iron.
week ended Feb. 10 1934 production of bituminous coal
Feb. 20 1934. $16.90 a Gross Ton. Based on average of basic iron at Valley
One week ago
$16.90 furnace foundry irons at Chicago,
amounted to 7,750,000 net tons, compared with 7,495,000
One month ago
18.90 Philadelphia, Buffalo, Valley, and BirOne year ago
mingham.
13.56
tons in the preceding week and 7,736,000 tons in the correHigh.
Low.
sponding period last year. Anthracite output totaled
1934
$18.90 Jan. 2
$16.90 Jan. 2
1933
16.90 Dec. 6
13.56 Jan. 3
1,222,000 net tons, as against 1,131,000 tons in the week
1932
14.81 Jan. 5
13.56 Dec. 8
1931
15.90 Jan. 6
14.79 Dec. 15
ended Feb. 3 1934 and 1,240,000 tons in the week ended
1930
18.21 Jan. 7
15.90 Dec. 16
Feb. 11 1933.
1929
18.71 May 14
18.21 Dec. 17
1928
18.59 Nov.27
17.04 July 24
During the coal year to Feb. 10 1934 production of
1927
19.71 Jan. 4
17.54 Nov. 1
Steel Scrap,
bituminous coal amounted to 294,071,000 net tons as
Feb. 20 1934,$12.25 a Gross Ton. IBased on No. 1 heavy melting steel
compared with 258,374,000 tons during the coal year to
One week ago
$12.08 quotations at Pittsburgh,Philadelphia.
One month ago
12.00 and Chicago.
Feb. 11 1933. The Bureau's statement follows:
One year ago
6.831
ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
Low.
High.
COKE (NET TONS).
1934
$11.33 Jan. 2
$12.25 Feb. 20
1933
12.25 Aug. 8
8.75 Jan. 3
1932
8.50 Jan. 12
8.42 July 5
Week
Ended
Coal Year to Pile.
1931
11.33 Jan. 6
8.50 Dec. 29
1930
11.25 Dee. 9
15.00 Feb. 18
Feb. 10
Feb.
3 Feb. 11
1929
14.08 Dec. 3
17.58 Jan. 29
1934.d
1934.c
1923.
193334.
1932-33.
1920-30.
1928
13.08 July 2
18.50 Dec. 31
1927
13.08 Nov.22
15.25 Jan. 11
Bitum. coal a:
Weekly total 7,750,000 7,495,000 7,736,000 294.071,000 258,374,000 458,148,000
Independent of large orders for railroad and construction
Daily avge__ 1,292,000 1,249.000 1,289,000 1,109,000
976,000 1,726,000
materials placed last week, rolling of which will not start Pa.
anthra. b:
Weekly total 1,222,000 1,131.000 1,240,000 44,733,000 42,522,000 64,504,000
for several days, steelworks operations made another sharp
Daily avge__ 203,700 188,500 206.700
247,100
170.700
162,300
advance, 4 points to 43%, with the trend still strongly Beehive
coke:
Weekly total
23,400
upward,states "Steel" of Cleveland, Feb. 19,in its summary
22,600
19,300
701,300
540,800 5,329,600
Daily avge__
3,900
3,767
3,217
19,813
2,607
2,010
of the iron and steel markets. "Steel" further says:
a Includes lignite, coil made Into coke, local sales, and colliery fuel. b Includes
Operations at Pittsburgh, heretofore lagging this year, swept up 5 points
Sullivan County, wasbery and dredge coal, local sales, and colliery fuel. c Subject
to 26%, highest since the bulge in shipments last December. Tin plate mill
to revision. d Revised.




ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS).11
Week Ended
&ale.

1315

Financial Chronicle

Volume 138

Feb. 3
1934.

Jan. 27
1934.

Feb. 4
1933.

Jan. 28
1933.

Feb.6
1932.

January
1923
Aserage.d

434,000
223,000 192,000 162,000 161,000 169,000
Alabama
93.000
73,000
40,000
36,000
51,000
52,000
Arkansas and Okla
226,000
95,000 198,000
105,000 120,000 113,000
Colorado
1 045,000 924,000 677,000 694,000 1,239,000 2,111,000
[Pinola
659.000
362,000 342,000 251.000 237,000 351.000
Indiana
140,000
59,000 110.000
65,000
65,000
69.000
Iowa
190,000
Kansas and Missouri 139,000 128,000 119,000 114,000 171,000
607,000
Kentucky-Eastern. 533,000 514,000 461,000 436,000 541,000
240,000
213,000 165.000 123,000 138,000 211,000
Western
55.000
40,000
30,000
30,000
40,000
40,000
Maryland
32,000
13,000
8,000
8.000
10,000
Michigan
12,000
82,000
65,000
45,000
46,000
45,000
Montana
50,000
73,000
28.000
25,000
24,000
25,000
25,000
brew Mexico
50,000
56,000
49,000
53,000
53,000
43,000
North Dakota
814,000
418,000 344,000 342,000 306,000 372,000
Dhio
Pennsylvania
1,760.000 1,730,000 1,422,000 1,417,000 1.434,000 3,402,000
133,000
80,000
61,000
64,000
71,000
Tennessee
81,000
26,000
12.000
8,000
9,000
14,000
Texas
15,000
109,000
83.000 115,000
82,000
55,000
Utah
47,000
211,000
Virginia
198,000 177,000 159,000 162.000 175,000
74,000
48,000
30,000
31,000
Washington
27,000
35,000
West Virginia:
Southern_ b
1 352,000 1,433,000 1,198,000 1,198.000 1,283,000 1,134,000
762,000
Northern.c
520,000 535,000 289,000 260,000 448,000
186.000
70.000 128,000
82.000
80,000
Wyoming
90,000
7,000
6,000
4,000
4,000
10,000
Dther States
10,000
Total bitum. coal. 7,495,000 7,150,000 5,850.000 5.730.000 7.346,000 11,850.000
Penna. anthracite- 1,131.000 1.184,000 929,000 814.000 1,074,000 1,968.000
Total colt
3,62'3.000 8,334,000 6,779,000 6.544.000 8,420,000 13,818,000
a Figures for 1923 and 1932 only arefinal. b Includes operations on the N.&W.:
C. & W.: Virginian: K. & M., and B. C. & O c Rest of State. including Panhandle. d Average weekly rate for entire month.

Sharp Increase Recorded in January Output of
Bituminous Coal and Anthracite.
According to the United States Bureau of Mines, Department of Commerce, there were produced during themonth of January 1934 a total of 32,916,000 net tons of
bituminous coal, as against 29,600,000 tons in the preceding month and 27,060,000 tons in the corresponding
period in 1933. Anthracite output amounted to 6,125,000
net tons as compared with 4,424,000 tons in December last
and 3,807,000 tons in January 1933.
The average production of bituminous coal per working
day amounted in January 1934 to 1,266,000 net tons,
compared with 1,184,000 tons in December 1933 and 1,070,000 tons in January last year. The Bureau's statement follows:
MONTHLY PRODUCTION OF BITUMINOUS COAL AND ANTHRACITE
IN JANUARY (NET TONS).
Bituminous.
Motuh.

December 1933
January 1934
January 1933

Anthracite.

No. of Alge•Per
No. of Artie. per
Total
Working Working
Working Working
Total
Day
Day. Produc'n. Days.
Production. Days.
29,600,000
32,916,000
27,060,000

25.0
26.0
25.3

1,184,000 4,424,000
1,266,000 6,125,000
1,070,000 3,807,000

25
26
25

177,000
235,600.
152,300

Current Events and Discussions
until the following Monday, before which time the statistics
covering the entire body of reporting member banks in the
different cities included cannot be got ready.
Below is the statement for the New York City member
banks and that for the Chicago member banks for the
current week, as thus issued in advance of the full statement
of the member banks, which latter will not be available until
the coming Monday. The New York City statement, of
course, als9 includes the brokers' loans of reporting member
decrease of $1,000,000 for the week. Increases of $108,000,000 in Treasury
banks. The grand aggregate of brokers' loans the present
cash and deposits with Federal Reserve banks 523,000,000 in money in
week shows an increase of $97,000,000, the total of these
circulation and $3.000.000 in non-member deposits and other Federal
loans on Feb. 14 1934 standing at $950,000,000, as comReserve accounts were practically offset by an increase of 8114,000,000 In
monetary gold stock and a decrease of 821,000,000 in member bank reserve
pared with $331,000,000 on July 27 1932, the low record
balances.
for all time since these loans have been first compiled in
The System's holdings of bills discounted declined 52,000,000, of bills
bought in open market $11,000,000, and of Treasury certificates and bills
1917. Loans "for own account" increased from $696,000,$5,000,000. while holdings of United States Treasury notes increased
to $790,000,000, and loans "for account of out-of-town
000
$5,000,000.
from $149,000,000 to $152,000,000, while loans "for
banks"
The statement in full for the week ended Feb. 21, in
of others" remained unchanged at $8,000,000.
account
comparison with the preceding week and with the corre- CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE cams.
sponding date last year, will be found on subsequent pages,
New York.
namely, pages 1356 and 1357.
Feb. 21 1934. Feb. 14 1934. Feb. 21 1933.
Beginning with the statement of March 15 1933, new
7,096,000,000 6,922,000,000 6.809,000,000
LOWS and investments-total
items were included as follows:
1. "Federal Reserve bank notes in actual circulation," representing the Loans-total
3,476,000,000 3,411,000.000 3,274,000,000

The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ended Feb. 21, as reported by
the Federal Reserve banks, was $2,590,000,000, a decrease
of $19,000,000 compared with the preceding week and an
increase of $322,000,000 compared with the corresponding
week in 1933. After noting these facts, the Federal Reserve
Board proceeds as follows:
On Feb. 21, total Reserve bank credit amounted to 52,592,000,000, a

amount of such notes issued under the provisions of paragraph 6 of Sec. 18
of the Federal Reserve Act as amended by the Act of March 9 1933.
2. "Redemption fund-Federal Reserve bank notes," representing the
amount deposited with the Treasurer of the United States for the redemption
of such notes.
3. "Special deposits-member banks," and "Special deposits-nonmember banks," representing the amount of segregated deposits receive
from member and non-member banks.
A new section has also been added to the statement to show the amount
of Federal Reserve bank no„es outstanding, held by Federal Reserve banks,
and in actual circulation, and the amount of collateral pledged against
outstanding Federal Reserve bank notes.

Changes in the amount of Reserve bank credit outstanding
and in related items during the week and the year ended
Feb. 211934, were as follows:

Bills discounted
Bills bought
U. S. Government securities
Other Reserve bank credit

Increase (+) or Decrease (-)
Since
Feb. 211933.
Feb. 21 1934. Feb. 14 1934.
$
$
$
66,000,000 -2,000,000 -261.000.000
75,000,000 -11,000,000 -105,000.000
+598,000,000
2,432,000,000
+11,000,000
+8,000,000
18,000,000

TOTAL REEVVE BANK CREDIT 2,592.000.000 -1,000,000 +241,000.000
7 203,000,000 +114.000,000 +3,030,000,000
Monetary gold stock
+98.000,000
Treasury and National bank currency 2,301,000,000
5,344,000,000 +23.000,000 -357,000,000
Money In circulation
21,000.000 +559.000.000
2,830,000,000
Member bank reserve balances
Treasury cash and deposits with Federal Itaserve banks
3 499,000,000 +108.000,000 +3,174.000,000
Non-member deposits and other Fed-8.000.000
+3,000,000
423,000.000
eral Reserve accounts

Returns of Member Banks in New York City and
Chicago-Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figuies of the
member banks in New York City, as well as those in Chicago,
on Thursday, simultaneously with the figures for the Reserve
banks themselves, and for the same week, instead of waiting




1,769,000,000 1,677,000,000 1,621,000,000
1,707,000,000 1,734.000.000 1,653,000,000

On securities
All other

3,620,000,000 3,511,000,000 3,535.000.000

Investments-total

2,553,000,000 2,448,000,000 2,452,000,000
1,067,000.000 1,063,000,000 1,083,000,000

U. S. Government securities
Other securities

850,000,000
42,000,000

Reserve with Federal Reserve Bank_ _
Cash in vault

810,000,000
41,000,000

782,000,000
48,000,000

Net demand deposits
Time deposits
Government deposits

5,368,000,000 5,361,000,000 5,380,000.000
686,000,000 704,000,000 803.000.000
54,000,000
717,000,000 501,000.000

Due from banks
Due to banks

72,000,000
75,000,000
76.000,000
1,320,000,000 1,322,000,000 1,176,000,000

Borrowings from Federal Reserve Bank.
Loanson occur. to brokers & dealers:
790,000.000
For own account
For account of out-of-town banks-. 152,000,000
8,000,000
For account of others

696,000,000
149.000,000
8.000,000

410,000,000
10,000,000
9,000.000

950,000,000

853.000,000

429,000,000

Total
On demand
On time
Loans and investments-total

674,000,000 576,000,000 249,000,000
276,000,000 277,000,000 180.000,000
Chicago.
1,404,000,000 1,351,000,000 1.048,000,000
571,000,000

57‘000,000

636,000.000

278,000,000
293,000,000

276,000,000
296,000,000

343,000,000
293,000,000

833,000,000

779,000,000

412,000.000

U. S. Government securities
553,000,000
Other securities
280,000.000
Reserve with Federal Reserve Bank- 306,000,000
Cash In vault
41,000,000

500.000,000
279,000,000
353,000,000
43,000,000

212,000.000
200.000.000
314.000,000
42,000,000

1,138,000.000 1,170,000.000
357,000,000 327,000,000
69,000,000
62,000,000

915.000.000
302,000,000
5,000,000

175,000,000
327,000,000

153,000,000
240,000,000

Loans-total
On securities
All other
Investments-total

Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from Federal Reserve Bank_

165,000,000
320,000.000

1316

Financial Chronicle

Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
The Federal Reserve Board resumed on May 15 1933 the
publication of its weekly condition statement of reporting
member banks in leading cities, which had been discontinued
after the report issued on March 6, giving the figures for
March 1. The present statement covers banks in 90 leading
.cities instead of 101 leading cities as formerly, and shows
figures as of Wednesday, Feb. 14 1934, with comparison for
Feb. 7 1934 and Feb. 15 1933.
As is known, the publication of the returns for the New
York and Chicago member banks was never interiupted.
These are given out on Thursday, simultaneously with the
figures for the Reserve banks themselves, and cover 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 90 cities cannot be got leady.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting membei banks of the Federal Reserve System for
the week ended with close of business on Feb. 14:
The Federal Reserve Board's condition statement of weekly reporting
member banks in 91* leading cities on Feb. 14 shows increases for the week
-of $207,000,000 in net demand deposits, $105,000,000 in reserve balances
with Federal Reserve banks and $10,000,000 in loans and investments,
-and a decrease of $28,000,000 in time deposits.
Loans on securities declined $51,000,000 at reporting member banks in
the New York district and $56,000,000 at all reporting member banks.
"All other loans" increased $44,000,000 in the New York district, $7,000,000
in the Boston district and $42,000,000 at all reporting banks.
Holdings of United States Government securities increased $34,000,000
in the Chicago district, $10,000,000 in the San Francisco district, $6,000,000
in the Cleveland district and 820,000,000 at all reporting member banks
and declined $38,000,000 in the New York district. Holdings of other
securities increased $4,000,000 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 $1,027,000,000 and net
demand, time and Government deposits of $1,052,000,000 on Feb. 14,
compared with 81,014,000,000 and $1,037,000,000, respectively, on Feb. 7.
A sununary 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. 14 1934, follows:

Loans and investments—total
Loans—total
On securities
All other
Investments—total
U. S. Government securities
Other securities

Increase (+) or Decrease (—)
Since
Feb. 14 1934. Feb. 7 1934. Feb. 15 1933.
$
17,092,000,000 +10,000,000 +475,000,000
8,286,000,000 —14,000,000 —415,000,000
3,531,000,000 —56,000,000 —163,000,000
4,755,000,000 +42,000,000 —252,000,000
8,806.000,000 +24,000,000 +890,000,000
5,887,000,000 +20,000,000 +933,000,000
2,939,000,000 +4,000,000 —43,000,000

Reserves with Federal Reserve Banks_ 2,010,000,000
Cash In vault
235,000,000
Net demand deposits
11,332,000,000
Time deposits
4,344,000,000
Government deposits
991,000,000
Duefrom banks
1,413,000,000
Due to banks
3,204,000,000
Borrowings from Fed. Res. Banks_
10,000,000

+105,000,000 +326,000,000
+8,000,000 +15,000,000
+207,000,000 +419,000.000
—28,000,000 —238,000,000
+3,000,000 +824,000,000
+80,000,000 —63,000,000
+76,000,000 +143,000,000

—2,000,000 —42,000,000
Increased from 90 to 91 on Jan. 10 In connection with the withdrawal of a
reporting member bank.

Initial Steps Taken in Canada To Create a Central
Bank—Major Features Follow Recommendations
of Macmillan Commission—Shares to Be Privately
Owned—To Take Over Dominion Notes and Replace
Them By Bank of Canada Notes—Will Also Take
Over Dominion's Gold.
The first steps to create the Bank of Canada were taken
on Feb. 22 in the House of Commons, where E. N. Rhodes,
Finance Minister, outlined the Government's proposed legislation for establishment of a central banking institution.
According to Canadian Press advices from Ottawa Feb. 22,
the legislation follows in all major features recommendations
of the Royal Commission, headed by Lord Macmillan.
The report of the Commission was referred to in our Dec. 2
issue, page 3909. From the Canadian Press advices Feb. 22
from Ottawa we quote:
Coupled with the bill creating the Bank of Canada came the Government's measure to extend the charters of commercial banks 10 years. Both
the measures passed first reading.
Their destination kr the time being is the Banking and Commerce
Committee of the HMse, where members will have an opportunity for full
discussion. Prime Minister R. B. Bennett and Mr. Rhodes said they would
welcome amendments designed to improve the legislation.
Mackenzie King, opposition leader, said the Central Bank had the
approval of his followers in principle. Differences would probably arise
on certain matters of detail.
The Bank of Canada, with head office in Ottawa. original capital of
15,000,000, and power to establish branches and agencies throughout the
Dominion, is to have wide jurisdiction and scope. It will have the sole right
of note issue, subject to a limited circulation by the chartered banks.
To Take Over Dominion's Gold.
It will gather up all gold, that held by the chartered banks and that in
the vaults of the Finance Department. It will have power to require the
transfer to it of gold held by any person in the Dominion.




Feb. 24 1934

The usual functions of a bank of rediscount will be performed by the
Bank of Canada. The chartered banks will have access to its credit comparable to that provided by the Finance Act, which will be repealed.
The Bank of Canada will be empowered to buy and sell for rediscount
bills of exchange and promissory notes endorsed by chartered banks.
Loans and advances may be made by the Bank of Canada to Dominion
and provincial governments with "appropriate limitations." The new
institution will be required to act as fiscal agent for the Government of
Canada. It may also act in a similar capacity for the Provinces by agreement.
The chartered banks will be required to maintain deposits with the Bank
of Canada equal to 5% of their deposit liabilities in Canada.
On the day that the Bank of Canada is authorized to start business
the issue of Dominion notes will cease. The new institution will assume
liability for Dominion notes outstanding.
Shares to Be Privately Owned.
The legislation sets forth a constitution of this new departure in Canadian
banking history. The Government has followed the recommendation of
Lord Macmillan and his colleagues that the shares of the bank shall be
privately owned. Its shares will be offered for public subscription at a
par value of $100. They will not carry the double liability which is attached
to commercial bank stocks.
In detail, the Government's legislation deals with the direction of the
new institution. A board comprising a Governor, Deputy Governor and
seven directors will control the business of the bank. It is specifically
provided that they must be British subjects and not members of Parliament
or of Provincial Legislatures. Seven-year terms of office for Governor,
Deputy Governor and an assistant to him are provided. All appointments
will, In the first instance, be made by the Government—subsequently
by the directors with Government approval.
"The proposed Central Bank is not to.be regarded as a break with the
Past," Mr. Rhodes told the House. "We are not cutting away from the
system which has served us so well. Rather, the Central Bank is to be
seen as but another stage in natural evolution of our banking system.
"It is not proposed that the Bank of Canada shall be directly responsible
for the general price level in Canada. Certainly, prices of particular commodities are not to be its direct concern. It is believed desirable, however.
and it is intended, that the bank shall have a definite measure of control
over the total volume of credit and thus be in a position indirectly to exert
an influence over the general price level."
Several provisions had been included in the legislation to remove the
fear that a privately owned institution would come under control of banking
or financial interests, the Finance Minister said. Not more than 50 shares
of the bank may be held by a single individual and dividends may not
exceed 6%.
To Replace Dominion Notes By Bank of Canada Notes.
Functions now performed by the finance department In the issue of
Dominion notes would be assumed by the new bank, which would reissue
in place of them Bank of Canada notes.
The bill also provides that chartered banks at first would have the right
to issue notes to the amount of their paid-up capital, but this right would
be abridged from year to year.
Surrender of Gold.
The measure would require banks to surrender to the central institution
all the gold they owned and held in Canada and any profits resulting from
the sale or devaluation of such gold would be paid to the Dominion Government for the consolidated revenue fund. Profits on gold held by a chartered
bank against liabilities elsewhere, it was provided, would belong to the
chartered bank.
The Governor-in-Council would have power to require every person
owning gold in Canada to transfer such gold to the Bank of Canada.
Simultaneously, the Finance Minister introduced the Bank Act, granting
the usual extension of charters for another 10-year period, but changing
the present Act, particularly in the matter of maximum interest rates and
the note-issue privilege. An amendment would put the maximum interest
rate at 7% yearly.
The Bank of Canada would be empowered to establish branches in
Canada and elsewhere. Its initial capital was placed at $5,000,000, in
shares of $100, on which a cumulative dividend limited to 6% might be
Paid. Only British subjects would be shareholders.

Trading in Gold Heavy in London—Record for One
Day, at £1,600,000—Total Sent to United States
Put at L50,000,000—Imports at £32,000,000—.C23,000,000 Shipped in from France—Bulk of Exports
Sent to This Country.
Stating that the feature of the financial situation in
London continues to be the great activity in gold, a London
cablegram Feb. 1'7 to the New York "Times' added:

At the beginning of the week there was a distinct lull, owing to the
holiday in New York, the general strike in Paris, and the disorders in
Vienna.
In the last few days of the week, however, the turnover increased rapidly
and on Thursday more than £1,600,000 in gold was dealt in, the record
trading for any one day. The total amount of gold sold at what is known
as the "daily fixing" from Monday to Friday was .C4,900,000, but as large
amounts are also disposed of each day after the official "fixing," the actual
transactions were considerably greater.
Although with the closer approach of the dollar to its new gold parity
the profit on arbitrage dealings has been smaller than in the previous
week, virtually all supplies of gold have been bought for shipment to
New York.
It is estimated here that approximately £50,000,000 has been either
shipped or engaged for future shipment to the United States, either from
London, the Continent of Europe or India. Much of the gold received
for sale in London has come from Paris for resale in the United States,
but at the moment, the shipment of gold from Paris to London is no
longer profitable.
Nearly £32,000,000 of gold was imported into England in the week
ended on last Monday, of which £23,000,000 came from France. In
the same period exports were .C10,000,000, ahnost all to the United States.
In the last few days imports and exports have continued on an extensive
scale.

Price of Gold Recedes in London—Return to 136a. 4d.
Laid to Rise in Exchange Rate.
Advices from London Feb. 17 to the New York "Times"
said:
After rising from 136s. lid, a fine ounce to 1378. 5d., the London
price for gold has dropped back to 136s. 4d. This decline was due to

Volume 138

Financial Chronicle

the rise of the dollar-sterling exchange rate, which is now not much more
than 1% below its gold parity.
The general view here still is that at its new level, the dollar is considerably undervalued. The rise of the dollar-sterling rate this week
from $5.03 to $5.084 largely is due to the extensive gold shipments to
the United States, but other factors have been a slowing down in the
repatriation of United States funds and the falling off in the European
demand for United States securities, the latter being checked by the
proposed regulation of stock trading by the United States Government.

Decline in Transvaal Gold Output in January.
The Transvaal gold output in January was 907,641 ounces,
comparing with 984,156 ounces in December and 967,457
ounces in January 1933, it was stated in London advices
Feb. 17 to the New York "Times":
Poland Will Remain on Gold Standard.
From Warsaw, Feb. 18, the Montreal "Gazette" reported
the following:
Finance Minister Zawadzki assured newspapermen to-day that Poland
has no intention of leaving the gold standard. Abandonment of gold, he
said, would be treason to "national effort" and a sacrifice that would start
a dangerous experiment.
"Poland has had a favorable trade balance for several years," he added.,
"Polish prices have been lowered and the indebtedness of business and
agriculture has been reduced—therefore nothing compels Poland to change
its policy."

Danish Bondholder Loses Suit for Gold from Dollar
Bonds—Plans Appeal in Copenhagen from Decision on Telephone Company Bonds Issued in
United States.
Wireless advices Feb. 3 from Coperhagen to the New
York "Times" said:
A Danish bondholder, August Soederberg, who on behalf of a group of
bondholders brought suit against the Copenhagen Telephone Co. following
the devaluation of the dollar, has lost the first round in the proceedings.
He demanded that $7,000,000 worth of bonds Issued on a loan made in
the United States be paid in gold in accordance with an agreement in
the text of the bonds. The telephone company asked that the case be
dismissed or that it be treated in accordance with the laws of the United
States, or that the company be acquitted.
The Court refused to dismiss the case, but acquitted the telephone
company on the ground that, as the bonds were issued exclusively in
the United States and interest was paid only in New York, American
laws should be applied in adjudicating the case. The Court ruled that
the plaintiff took advantage of the text in the bonds promising that dollars
would be paid In the United States and that he should also run the risks
arising from the same circumstance.
M. Soederberg plena to take an appeal to the Supreme Court. If the
telephone company were ordered to pay the gold value of the bonds the
extra expenses to it annually under present rates of exchange would reach
1.500,000 kroner.

An item regarding the suit appeared in our issue of Jan. 27,
page 596.
Denver Mint Gold Gains in January—Increased Price
Means Additional $1,250,000 to Producers of District.
In its Feb. 3 issue the Denver "Rocky Mountain News"
said:
During January of this year, gold producers of the Denver mint district produced 4,878,778 fine ounces more gold than in January 1933.
Because of the new price on gold, they received $1,250,000 more for their
output than they did in January of last year. The total gold output last
month was 84,350,673 fine ounces.
At the old price of gold this was only $100,853.17 more gold than in
January of 1933.
The mint bought 10,364.13 fine ounces of silver last month, which
was 13,178.64 ounces less than in January 1933. The total Price Paid
last month was $4,673.98. of which $2,651.44 was at the old world price
of 44 cents. The balance was bought at the new price of $1.29, which
netted the producer 6434 cents an ounce.

Milan Court Upholds Gold Clause.
The following from Milan is from the "Wall Street
Journal" of Feb. 5:
In a case over a contract which contained a gold dollar clause, a court in
Milan has decided in favor of the full force of the gold clause and that the
gold dollar clause is to be interpreted as a dollar of the gold content in
effect before the American suspension of the gold standard.

Chinese Bar Inflation—Bankers Warn United States
That Silver Value Rise Would Harm China.
From Shanghai, Feb. 22, a cablegram to the New York
"Times" said:
Finance Minister II. H. Kung emphatically denies any intention of artificial inflation for the Chinese dollar. Coupled with this, five leading
Chinese bankers cabled to President Roosevelt warning that artificial enhancement of silver values would deal a severe blow to China's welfare.
Sentiment in Chinese banking circles favoring a rigid silver embargo
is growing.

Baron Revelstoke, Head of Baring Brothers & Co.,
Dies in London—Banker Was 69 Years Old.
The Baron Revelstoke, head of the banking house of
Baring Brothers & Co., died in London Jan. 26 at the age
of 69 after an illness of several weeks. A London cable to
the New York "Times" added the following:
Soon after leaving Oxford in 1887. Cecil Baring, as he then was, traveled
to Now York and joined the firm of Kidder. Peabody & Co., of which his




1317

uncle, the late Thomas Baring, was a partner. After a business career
lasting until 1901, he decided to retire and devoted himself to agricultural
and natural history pursuits, chiefly on Lambay Island, off the Irish coast.
He returned to London in 1911 and was elected a director of Baring
Brothers & Co., Ltd. His only son, the Hon. Rupert Baring, born in 1911.
succeeds to the title.

Big Profits Spur French Gold Drain—Activity Laid to
Difference Between Dollar Rate and Price Fixed
for Metal.
Noting that the Feb. 15 statement of the Bank of France
showed a decrease of 1,978,000,000 francs in gold reserves,
a wireless message from Paris Feb. 17 went on to say:
This was foreseen, as the return applies to the week from Feb. 2 to 9.
in which period the abnormal difference existing between the dollar rate
and the price fixed for the purchase of gold by the United States determined
shipments of gold to New York.
These shipments were all the more considerable and precipitate because
bankers were enabled to make an exceptional profit on such transactions
without any risk. Furthermore, the recovery in Dutch exchange had
arrested the shipment of gold from Amsterdam to Paris.
The outgoings of gold from France probably also include some withdrawals for hoarding, but gold was chiefly taken for shipment to New York.
A small amount was sent directly from France to the United States,however, as the greater part was sent to England for subsequent re-export
to New York.
Before taking gold from Paris it was necessary to obtain francs, and
that was not altogether easy, since withdrawals of gold naturally entailed
a corresponding decrease in the market's liquid resources. Furthermore,
there were a few days of uneasiness, in which the tightening of the money
market became more pronounced for psychological reasons.
The Bourse carry-over for one-month franc loans against pounds was
paid at a rate corresponding to about 10% per annum, and much higher
was asked for similar accommodations for two and three days.
however.
The carry-over rate was only one-half as much for dollar loans,
because the direct gold dealings and exchange with the United States were
much less important.
the
The decline in the dollar on European markets has reduced greatly
marginal profit on gold transactions. Withdrawals from the Bank of
France have noticeably decreased, and are likely to do so still further.
abanEven if continued for some time, there would be no question here of
doning the gold standard.
Despite the exodus of 2.000,000,000 francs in gold, the cover ratio fell
high, and
only from 79.10 to 77.79%. In other words, it is still extremely
for the init should be noted that the fall would have been still smaller but
and
month
the
of
time
this
crease in circulation, which is abnormal for
here.
which was ascribed solely to the public reaction to political events

Franco-British Trade War Begins as France Denouncet
Commercial and Navigation Treaties — Action
Follows British Threat of 20'c, Duty Increase
Unless France Would Raise Import Quotas—
House of Commons Supports Government's Action
as Outlined by Walter Runciman.
What was described in the press as "a bitter trade war"
between France and Great Britain was begun last week
when France on Feb. 12 formally denounced the FrancoBritish trade and maritime treaties of 1926 and 1862,
effective at mid-night on that day. The treaties will not
lose their force until May 12, however. The Fiench action
was taken as a reprisal against the British because of an
announcement in London Feb. 9 stating that an additional
20% customs duty would be imposed on numerous French
products in retaliation for the French refusal to restore
100% import quotas for British goods. The British announcement said that unless the 75% quota out for thefirst
three months of 1934 were restored by Feb. 13 the British
Government would start reprisals.
A London dispatch Feb. 9 to the New York "Times"
described the British announcement as follows:
The British Government says its purpose is to reduce French imports
into Britain by an amount equal to the cut in British exports to France.
The value of this cut is put at between £750,000 and £1,000,000 annually.
The new schedule, which does not apply to goods produced or manufactured in the Saar Basin, will bring the duties on fully finished silk
goods, such as dresses, up to 63 1-3% of their value, those on other clothes
to 50%, on shoes and feathers to 40% and on artificial flowers to 50%•
The British customs officers are extremely active. many prosecutions
occurring as a result of careless declarations by travelers, and henceforth
will require them to produce proof of the origin of any goods brought
into Britain from Spain, Portugal, Italy, Switzerland, Germany, the
Netherlands, Belgium. Luxemburg and the Saar Basin.

United Press Paris advices of Feb. 12 to the New York
"Herald Tribune" quoted the French communique as follows:
The text of the conununique follows:
Circumstances have obliged the French Government to inform the
British Government that it must consider as denounced, beginning at
midnight, Feb. 12, the commerce and navigation convention of Jan.
26 1826, and the commercial trade pact of Feb. 28 1892, at the same time
that reprisal measures announced in London are effective.
This denunciation will become fully effective at the expiration of three
months.
At the same time, the French Government—which fully proposes to
keep intact its new commercial policy but which is anxious to neglect
no effort to reach as soon as possible an amicable solution—has renewed
its offer, already often made, to start negotiations to adjust our differences without delay.
The technical bureaus at present are studying the scope of London's
action, especially seeking to ascertain if it will not tend to surpass the
effects sought by the British Government in wishing to diminish French
exports in proportion to the reduction of British exports.
When apprised of the results of this investigation, the French Government will be in a position to draw the necessary conclusions.

1318

Financial Chronicle

France Cites United States Concessions.
The start of the trade war, which it is feared may prove disastrous to
the world's already chaotic economic condition, was regarded as inevitable
when Frence sent a note to Great Britain refusing to rescind her reduction on import quotas on British goods. The note, delivered at the British
Foreign Office in London at noon to-day, insisted that France was employing toward Britain the same methods as were being used toward the
United States and Belgium, both of which have granted concessions to
French goods in return for France's retraction of the quota restrictions
against them.
It was this retraction to the United States and Belgium which caused
the British protest and ultimatum, but France refused to back down,
and to-night's denunciation followed.

The action of the British Government in imposing the new
duties on French imports was approved by the House of
Commons. by a large majority on Feb. 15, with only 44
votes recorded against the order. Walter Runciman,
President of the Board of Trade, outlined the Government's
position to the House. He said that Great Britain was
willing to enter into further negotiations with France but
suggested that France first remove the alleged discriminations against British trade. A London dispatch of Feb. 15
to the New York "Times" described the debate in part
as follows:
Mr. Runciman read a series of communications which had passed between the two governments since Britain first protested, and amid applause
be asserted Britain had been patient while her traders had suffered. One
Specific charge concerned evasion of a categorical promise by the French
Government not to discriminate against British trade, a promise obtained at Lausanne in July 1932.
Sir Austen Chamberlain, recognized as one of the greatest friends of
France in Britain, intervened in the debate to declare that no other course
was open to Britain than to impress the French that their treatment of
British trade was felt here to be "unfair, unjust and intolerable."
It was enough, he said, to drive almost to despair an Englishman who
had done all he could to promote good understanding between these
countries.
Mr. Runciman said that while the French surtax and import turnover
tax had imposed severe handicaps on British trade,the real British grievance
was that Britain had been placed in a worse position than other nations.
Thus, he explained that France in December had imposed new quotas,
making a cut of £3,000,000 in British exports to France, and had Increased
the license tax on British coal.
Then, a week later, France had restored all the American quotas to
100% and then, after a few days, all the Belgian quotas, Mr. Runciman
said. He estimated the net British loss at £500.000. He said the new
duties imposed on silk goods were expected to make good this deficiency
but not to exceed it.

Duke of Brabant Succeeds to Throne of Belgium,
Following Death of Albert I in Mountaineering
Accident—Monarch Killed Instantaneously While
Climbing Peak—State Funeral Services in Brussels
—New King, as Leopold III, Takes Simple Oath
in Chamber of Deputies—President Roosevelt,
ex-President Hoover, Secretary Hull Among Those
Expressing Sympathy.
Albert I, King of Belgium, was killed Feb. 17 in a mountaineering accident while attempting to climb Rocher de
Marches des Dames, a peak near Namur, Belgium. He was
58 years old. Impressive funeral services were held Feb. 22
in Brussels, attended by the heads of all European States or
their representatives. Great Britain was represented by the
Prince of Wales and France by President Albert Lebrun.
The Duke of Brabant succeeded to the throne as Leopold III
yesterday (Feb. 23), after taking an oath in which he swore
to observe the Belgian Constitution and laws and to maintain national independence and territorial integrity. Leopold III is 32 years of age. He ascended the royal throne
in the Chamber of Deputies, accompanied by the new Queen,
the former Princess Astrid of Sweden. Members of both
Houses of Parliament witnessed the ceremony, as did royalty
and officials from many countries. The President of the
Senate proclaimed Leopold King after the oath had been
taken.
The death of King Albert shocked the world, and brought
expressions of sympathy by many international leaders.
President Roosevelt cabled Queen Elizabeth, Feb. 18, as
follows:
I am shocked beyond expression to learn of the untimely death of His
Majesty the King. The Government and people of the United States condole
with Your Majesty in the loss of a ruler so universally beloved and whose
energy and wisdom were so devoted to the ideals of peace and justice
among the nations of the world.
Mrs. Roosevelt joins with me in heartfelt sympathy for Your Majesty
and your family in this great sorrow. I shall always be grateful for the
privilege of friendship with your splendid husband and I have a deep sense
of personal loss.

Secretary of State Hull sent the following cablegram to
the Belgian Minister for Foreign Affairs, Feb. 18:
I am sorely grieved to learn of the deplorable death of His Majesty, your
King. The American people join with me in expressing our great sorrow
in the passing of His Majesty, who did so much in cementing the true
friendship existing between our two countries. The world mourns the
passing of a great King and a great man.

President Roosevelt on Feb. 19 cabled the following message to the Duke of Brabant:




Feb. 24 1934

My country learns with sincere sorrow of the death of His Majesty, your
father. In his official life he was just and wise and in his private dealings
a true friend to all. Bound to him by strong ties of unalterable friendship,
the American people join with me in sending to Your Royal Highness our
deep condolence.

The House of Representatives, Feb. 19, unanimously
adopted a resolution offered by Representative McReynolds,
Chairman of the Foreign Affairs Committee, authorizing
President Roosevelt to express to the Belgian Government
the sorrow of the House over the death of King Albert. The
resolution read as follows:
HOUSE RESOLUTION 202,
Resolved, That the House of Representatives of the United States of
America has learned with profound sorrow of the death of His Majesty
Albert I, King of the Belgians, and sympathizes with his people in the loss
of their beloved King.
Resolved, That the President be requested to communicate this expression of sentiment of the House of Representatives to the Government of
Belgium.
Resolved, That as a further mark of respect to the memory of KingAlbert the House do now adjourn.

Former President Herbert Hoover, in a statement issued
Feb. 18, at Palo Alto, Calif., said that King Albert will be
'remembered "as one of the outstanding figures of the war
by virtue of not only his military courage and ability, but
also for his great moral courage." Mr. Hoover said that
the late King was "a man of great simplicity and nobility
of courage," and added:
In his youth he had spent some time under an assumed name in the United
States as a workman on the Great Northern RR. He often spoke to me of
this as a most happy period which he had ended with great reluctance to
answer the call of duty at home. His was an ever devoted affection for
the American people.
Under his moral leadership the Belgians refused to violate their undertaking of neutralists and thereby suffered untold miseries for the whole
period of the war, but theseby established their character among nations.
Under his military leadership the defeated Belgian Army rallied to hold
the German invasion at Nieuport and at enormous sacrifice held it fast for
the entire period of the war.
America will join with Belgium in mourning the loss of a great man.

We quote briefly from Associated Press (Brussels) advices of Feb. 18 describing the accident which resulted in
the death of King Albert:
He slipped and fell in the ascent, and the body was found early this
morning, more than 10 hours after a frantic search was instituted by the
lone personal servant who had accompanied the King in a motor car driven
to the foot of the mountain area. Death apparently was instantaneous as
the result of a fractured skull.
Namur is a city about 35 miles southeast of the Belgian capital.
It was a strange trick of irony that the Belgian monarch, hailed around
the world for his brave leadership in World War days and famous for his
mountain climbing exploits in many foreign countries, should have met
death in the hills of his homeland.
The Belgian capital knew nothing of the tragedy until it awakened to the
shock of the news during the morning. The Belgians held regard amounting
almost to hero worship for the man who personally led his country through
the agonies of the great war to victory.
The place where the fatal accident occurred was surrounded by rocks
and deep ravines rather than by precipitous slopes such as are found in the
Alpe, where the King had spent many of his climbing holidays.

The Associated Press cabled from Brussels the following
text of the proclamation issued by the Belgian Cabinet,
Feb. 18:
•
The King is dead.
On the dawn of the anniversary of his succession to the throne, at a time
when the country which the King saved regarded him with affection and
redoubled respect and counted more than ever upon his imperturbability and
his wise ruling, in the midst of the perils of the hour, an appalling accident
has robbed Belgium of the leader of whom she was so proud.
The brief of the nation will be profound and its first thought will be
one of infinite gratitude for the King who devoted his whole strength, his
fine intelligence, and all resources of his great heart to the service of
Belgium.
The country lost a guide, a prop, and an incomparable servant who protected his country and, during the war, thought of nothing but the peace
and welfare of his subjects.
King Albert I was a statesman and a soldier.
Belgium addresses to Her Majesty the Queen its homage and sympathy
in her great loss.
Belgium places her hope in the Crown Prince who succeeds three great
Kings who founded, made great and preserved the country. With the aid
of divine Providence may he continue the work of his august father and
bring an even greater fruition to the task so magnificently undertaken and
carried out in the loyal exercise of the royal rights and prerogative.

Guaranty Trust Co. of New York to Convert Additional
Dutch East Indies Dollar Bonds into 4% Guilder
Bonds.
The Guaranty Trust Co. of New York announced on
Feb. 19 that it has novibeen authorized to accept additional
Dutch East Indies Dollar Bonds for conversion into 4%
Guilder Bonds at the rate of 2.45 Guilders for each dollar
of the principal amount of the bonds presented to its trust
department for that purpose. The announcement said:
For all bonds presented to the trust company, registered negotiable
receipts will be delivered by them in their capacity as agent.
With respect to 40-year 8% bonds duejMarch 1 1962. and the 30-year
53.5% bonds due March 1 1953, the:coupons due March 1 1934. should be

Volume 138

Financial Chrcnicle

detached for collection in the usual manner before bonds are presented
for conversion.

Reference to the original authority granted to the trust
company by the Dutch Colonial Government to convert
the bonds was made in our issue of Feb. 10, page 959.
President Roosevelt Lifts Tonnage Tax on Soviet Ships
—50-Cent Levy on Alien Vessels Ended from Date of
Recognition by United States—Presidential Proclamation.
President Roosevelt has lifted the special tonnage tax
against ships from the Soviet Republic, it was stated in
Associated Press advices Feb. 17 from Washington to the
New York "Herald Tribune," in which it was further
stated:
In cases where the United States does not have a treaty of relations with
a foreign nation, vessels of those nations entering United States ports pay
a tax of 50 cents a ton. By executive proclamation, effective from the date
of Russian recognition, President Roosevelt removed this tax.
The President's proclamation said: "Whereas satisfactory proof was
received by me from the Government of the Union of Soviet Socialist
Republics on Nov. 21 1933, that no discriminating duties of tonnage or
imposts are levied or imposed in the waters of the Soviet Socialist Republics
upon vessels wholly belonging to citizens of the United States or upon
the produce, manufacturers or merchandise imported in such vessels from
the United States or from any foreign country:
"Now, therefore, I, Franklin D. Roosevelt, President of the United
States of America, by virtue of the authority vested in me by Section 4228
of the Revised Statutes of the United States do hereby declare and proclaim
that the foreign discriminating duties of tonnage and imposts within the
United States are suspended and discontinued so far as respects the vessels
of the Union of Soviet Socialist Republics and the produce, manufactures
or merchandise imported in said vessels into the United States from the
Union of Soviet Socialist Republics or from any foreign country; the suspension to take effect from Nov. 21 1933, and to continue so long as the
reciprocal exemption of vessels belonging to citizens of the United States
and their cargoes shall be continued and no longer."

Oversubscription of New Australian Loan of £21,600,000.
In Canadian Press advices from London Feb. 22 it was
stated that subscription lists for Australia's final conversion
loan of more than $100,000,000 were closed, oversubscribed,
within two hours of their opening on that date. Details
of the offering were contained in the following London cablegran Feb. 19 to the New York "Times":
The seventh and last of the series of conversion loans carried out by
the Commonwealth of Australia will be offered for subscription on Thursday [Feb. 221 at amounts to about £21,600,000 in 3% stock, repayable
from 1945 to 1959, offered at 97%.
The purpose of the loan is to replace an equal amount of Sand 534%
stocks of New South Wales, Victoria and Queensland, the principal stock
to be converted being Victoria 5% of 193242, amounting to £13,875.800.
The first Australian conversion loan was floated in 1932 and Thursday's
will bring the total converted to £109,849,086. Interest on more than
£100,000,000 of this total varied from 5 to 634%. Interest on the conversions varies from 33i to 4%•
The annual saving is approximately £2,000,000, representing a substantial relief for Australian taxpayers.

President Roosevelt and Hiroshi Saito Exchange
Pledges of Friendship as New Japanese Ambas-.
sador Presents Credentials at White House—Both
to Seek Maintenance of Peace in Pacific Area—
Envoy, Arriving in New York, Declares Attack on
Russia Would Be Suicidal.
Mutual pledges of a desire to maintain peaceful relations
In the "Pacific region" were exchanged Feb. 13 between
President Roosevelt and Hiroshi Saito, newly appointed
Japanese Ambassador to the United States, as the latter
presented his credentials at the White House. Mr. Saito
expressed his belief that any political and economic questions between the two nations "can and will be amicably
composed in a spirit of friendship and mutual confidence."
It is the natural mission of both peoples, he added, "always
to work together for the establishment of an indestructible
peace" in the Pacific area. President Roosevelt, in his reply,
promised his cordial and sympathetic co-operation "in all
of the many lines of endeavor which are possible in pursuance of and toward making prevail that principle."
On the occasion of his arrival in New York, Feb. 9, Mr.
Saito told newspaper reporters that Japan earnestly desires
peace and that it would be "suicidal" for his country to
attack Russia. He said that Japan has no intention of being
the aggressor against any country but is merely seeking the
stabilization of Eastern Asia.
Mr. Saito's remarks to President Roosevelt, Feb. 13, were
as follows:
Mr. President: It is my high privilege and great honor to present to you
the letters of credence with which my Sovereign has been pleased to entrust
me with the mission of representing my country as Ambassador in the
United States.
I may be permitted, at the same time, to place in your hands his
Majesty's letters of recall for Mr. liatsuji Debuchi, my predecessor in the
same capacity.
It is not without some personal sentiment that I am assuming my duties
near your Government, for Washington was the first post I had in my diplomatic career and the United States is the country where I have spent the




1319

major part of by official life. I am happy to be able to say that, in the
course of my extended sojourn in this country, I have made many American
friends whom I know to be well-wishers for the good relations between our
two peoples.
I shall make it the prime object of my task in the United States to
strengthen the traditional friendship binding our two nations, and in that
task I know, Mr. President, that the Government under your direction, and
the people of this great country, will give me constant co-operation and
encouragement.
Eastern Asia is at present passing through a very important period. Japan
was some time ago constrained to take decisive steps for the consolidation
of stability and good order in that region. Peace in Eastern Asia has been,
and will ever be, the genuine aim and abiding aspiration of the Japanese
nation, and whatever action Japan may take will always be taken in its
interests. I am happy in believing that there are many Americans who
have a sympathetic and discerning understanding of the whole situation
and the difficulties Japan has had to face.
Then, in the field of economic activities Japan and the United States are
able, or rather destined, to go hand in hand in many respects. The industries of the two countries are largely complementary; their economic interests are not conflicting with each other. Our vast mutual trade, the largest
between any two countries on the Pacific, is highly valuable to both our
nations. There should be ways and means by which we could profitably
unite our efforts in'the common struggle against the economic depression
which still weighs heavily upon all humanity.
I am sure that whatever question, either political or economic, may arise
between our two countries can and will be amicably composed in a spirit
of friendship and mutual confidence—the spirit that has characterized our
relations ever since Japan made, at the instance of the United States, her
first formal entry into the family of nations. It is the natural mission of
our two peoples always to work together for the establishment of an
indestructible peace in the Pacific region.
In conclusion, let me, Mr. President, offer my sincere wishes for your
good health and many successes in your exalted office as well as for the
prosperity and progress of the great republic under your splendid Administration.

Text of President's Reply.
President Roosevelt, in his reply, said:
Mr. Ambassador: It affords me great pleasure to receive from your hands
the letters from his Majesty, the Emperor of Japan, accrediting you as his
Ambassador to the United States and to welcome you in that capacity. I
also accept the letters of recall of your distinguished predecessor, Mr.
Eatsuji Debuchi, who for many years so ably and agreeably represented
his Sovereign in this country and who addressed himself with singular
felicity to the maintenance of friendly relations between Japan and the
United States.
I welcome in a new and more highly responsible position one who has
already served his country with distinction in different capacities at various
places in this country. The welcome which I extend to you is the warmer
by virtue of previous acquaintance and the pleasure with which I look forward to renewal of past associations.
The friendships which you have made here, your knowledge of this country and of its problems, and your appreciation of the single-minded devotion of the people of this country to the promotion of peace and international
accord, especially qualify you for the important tasks upon which you now
enter.
Pledges United States Co-operation.
It will be my privilege, Mr. Ambassador, to facilitate the accomplishment of what you have laid down as the prime object of your high mission,
to strengthen the friendly relations between two countries.
I share fully the view which you have expressed that all questions which
may arise between our two countries will be resolved in a spirit of friendship and mutual confidence. You will find this Government devoted now as
In the past to the principle of maintaining peace in the Pacific region as
elsewhere and ready to co-operate cordially and sympathetically with your
Government in all of the many lines of endeavor which are possible in
pursuance of and toward making prevail that principle. It is our constant
desire that, by co-operation, all the countries of the Pacific region may
continue to enjoy peace and may attain conditions of abiding prosperity.

Benefits Which Are Expected to Accrue to Colombia
from United States Monetary Policy Already Visible
According to Lawrence E. de S. Hoover of Independent Bondholders' Committee.
Commenting on the improvements in the financial situation of Colombia incident to the monetary policy of the
Washington Administration, Lawrence E. deS. Hoover, Secretary of the Independent Bondholders' Committee for Colombia, in a statement made available Feb. 11, said:
Under the Gold Reserve Act of 1934, the United States Treasury is authorized to purchase gold at an announced price of $35 per ounce. Under
regulations subsequently issued by the Treasury, it is possible for foreign
interests now to sell gold bullion to the United States Treasury at $35 an

ounce.
In 1933 Colombia produced approximately 380,000 ounces of gold, which,

taken at this price, would yield to Colombia approximately $13,300,000.
This amount is now sufficient to cover in full interest requirements of
approximately $12,850,000 annually due on the entire external debt of
Colombia, including the bonds of the National Government; the short-term
notes due to American bankers; the Departmental and Municipal bonds; the
private and publicly owned mortgage banks; as well as debts due to the
British.
It is estimated that the interest on all the national debts due abroad
requires approximately $4,250,000 a year. The Departmental bonds require
$4,202,500; the Municipal bonds, $1,432,700; and the Mortgage Bank bonds,
both private and public, require approximately $2,725,000, including bonds
outstanding in London. The corresponding debt is estimated now to be
outstanding to the extent of $51,250,000 of 6% bonds of the National
Government, held by the American investors; $16,951,000 in short-term
notes held by American and British bankers; and approximately $5,500,000
sterling bonds outstanding in London. The Departmental debt is made of
$59,904,000 in bonds; and the Municipal bonds amount now to $20,463,000,
due in New York. The Mortgage bonds outstanding in the United States
are estimated to have been reduced to approximately $25,000,000; while
the Mortgage Bank bonds outstanding in London are estimated to be approximately $8,400,000. More than 90% of the Colombian debts are due to the

1320

Financial Chrcnicle

American investors and the American bankers; and only 10;i, are outstanding in England.
Apart from this fortunate position in which Colombia finds herself by
the increased price of gold in New York, it is evident that the monetary
policy pursued by the United States Government, and the devaluation of
the dollar to 69.06c. of its former parity, will prove of great advantage
to Colombia. Increased commodity prices which are now expected—
especially higher coffee prices—should prove of great benefit to Colombia.
Colombia exports approximately 3,250,000 bags of coffee a year (of which
approximately 3,000,000 bags are consumed by the United States) at an
estimated value of $45,000,000 in 1933. Subsequent to the pegging of the
dollar at 59.06c., the price of Colombian coffee advanced in one week one
cent ($0.01) a pound average, adding corresponding value to Colombia's
income of about $4,500,000, based on the volume of coffee exports of 1933.
This should swell its foreign trade balance, thus further facilitating payment of its dollar obligations, as Colombia has normally an excess of
exports over imports. Despite the fact that the export surplus was substantially reduced during 1933, it amounted to more than 13,000,000 pesos,
excluding the value of exports of petroleum products, which exceeded
9,000,000 pesos for the year.
The total interest requirements of Colombia's external obligation would
absorb approximately 23% of the effective income from exports, as compared with the corresponding ratio of 40% in the case of Argentina, which
is currently meeting its foreign debts.
Benefits which are expected to accrue to Colombia from the monetary
policy of our Government are already visible. Colombian currency has
substantially improved in the past two months, and whereas the discount
in October was 65%, as compared with the dollar, it is officially reported
to-day that the discount has been now reduced to 45%. Under normal
conditions this discount might be expected to be further adjusted.
This favorable outline of the Colombian position is not given by the
Independent Bondholders' Committee for the Republic of Colombia with a
view to encouraging speculation in Colombian external obligations, as, in
point of fact, the Colombian Government has given no indications of a
desire to resume its debt service voluntarily.

Panama Gana] Traffic Gains.
The number of vessels passing through the Panama Canal
during 1933 increased 13% compared with the preceding
year, advices to the Commerce Department from its Panama
office reveal. The Department on Feb. 10 added:
The total number of vessels in transit through the Canal during the last
calendar year was 4,939 with a net tonnage of 25,251,759 compared with
4,367 vessels with net tonnage of 22,636,141 in 1932. Cargo tonnage
carried by vessels passing through the Canal in 1933 amounted to 21.163,872
against 18,099,938 in 1932.
The total amount of tolls collected from commercial vessels transiting
the Canal during the last calendar year was $21,422,273. The low month
of the year in transits and tolls was February with 368 transits and $1,575.708 in tolls and the high month was December with 496 transits and
$2,204,134 tolls.
Approximately two-thirds of the increase in the traffic passing through
the Canal, the report states, was in intercoastal trade.

"Year Book" of New York Stock Exchange for 1932-33—
Member Firms Increased from 610 on Jan. 1 1933
to 621 on Jan. 1 1934—Price of "Seats" Higher in
1933 Than in 1932.
The New York Stock Exchange distributed to its members
Jan. 31 copies of the "Year Book" for 1932-1933, containing
statistical and historical data of the activities of the Exchange
for the past year. The "Year Book" shows that the number
of Stock Exchange firms increased from 610 on Jan. 1 1933
to 621 on Jan. 1 1934; while the number of branch offices
of member firms also increased during the year, from 1,171
to 1,215. These totals compare with the highs of Jan. 1 1930
when there were 665 firms, having 1,658 branch offices.
An announcement by the Exchange said further:
The distribution of branch offices by States as of the first of this year
shows that such offices were located in 352 cities in 43 States and territories
and in seven foreign countries.
William B. Wadsworth and Michel C. Bouvier, who joined the Exchange
in 1869. continue to head the list of oldest Stock Exchange members in
point of seniority. Others who have been members of the Exchange for
more than 50 years are William Fahnestock, Henry G. S. Noble and John D.
Rockefeller Sr. More than 200 members of the Exchange have held their
memberships for more than 20 years.
Ninety-two memberships were transferred during the year, compared
with 101 in 1932. The price of seats ranged from $250,000 to $90,000,
compared with from $185,000 to $68,000 in 1932.
Approximately 300 employees were added to the Exchange staff during
the past year, bringing the total number of employees as of Jan. 1 to 2,666,
including the affiliated companies of the Exchange. Bernard Smith,
who retired as an active employee on May 1 1933 yielded first place in
the list of active employees with the longest period of service to Robert
Becker, first assistant manager of the Night Branch of the Stock Clearing
Corp., who has recorded more than 50 years continuous service. Previous
to his retirement, Mr. Smith had been actively engaged in his duties for
59 years.
The "Year Book" contains a chronology of historical dates since the
organization of the Exchange in 1792; a complete list of all days on which
the Exchange has been closed since 1900; a record of officers of the Exchange
and other miscellaneous data. The statistical tables include call money
rates, member borrowings, short interest statistics, volume of trading,
and the number and value of listed shares and bonds.

Montreal Stock Exchange and Curb Market Publish
First Year Book—Volume Shows Value of Montreal
Security Listings at End of 1933 was $5,978,206,317.
The Montreal Stock Exchange, in pursuance of a policy
of more extensive public relations, issued on Feb. 12 the
Montreal Stock Exchange and Curb Market Year Book
for 1933-34, the first time that such a volume has been pub-




Feb. 24 1934

lished. The book reveals that the value of all Montreal
security listings as of Dec. 31 1933 was $5,978,206,317, a
figure higher than that of any two exchanges in Canada
and the largest for any exchange on the American Continent
outside of New York City. The Montreal Stock Exchange
and the Montreal Curb Market are joint publishers of the
book, which contains several illustrations, much recent
statistical data, and information regarding listing requirements, commissions, stock taxes, etc.
The history of the Exchange and the method of transa,ctingbusiness are described in detail, while a general article discusses the relation of the stock market to the economic
structure as a whole. The book is being distributed by
members of the Montreal Stock Exchange and members of
the Montreal Curb Market.
Chairman Rayburn of House Committee Says Committee Will Not Approve Any Provision in Bill for
Federal Regulation of Stock Exchanges Which.
Would Lodge Control of Capital for Industry in
Federal Trade Commission—Statement Follows.
Attack on Bill by Representative Cooper.
A declaration that the House Inter-State Commerce Committee will not approve any sections of the pending Stock
Exchange bill granting to the Government a control over
the flow of capital into industry was made by Chairman
Rayburn, according to advices from Washington to the
"Wall Street Journal" of Feb. 21,from which we also quote
Mr. Rayburn's emphatic declaration followed a heated attack on sections of the bill by Representative Cooper (Rep., Ohio), a Committee
member, who alleged that the bill as now drawn would grant to the Federal
Trade Commission authority to prevent any individual business from
obtaining new capital by issuance of securities.
Thomas Corcoran, RFC counsel and part author of the bill, defended
the sections mentioned by Mr. Cooper and asserted that the charges were
"a red herring" which had been drawn across the trail of the bill by those
interested in the stock exchanges.
Rayburn Denies Authorship.
"The Committee is not going to do anything like that," Chairman
Rayburn said interrupting the witness. He referred to sections which
might allow so-called "social control" of securities issues. "I want to
emphasize," the Chairman added, "that this bill was introduced by me
merely as a basis of consideration. It is not my bill."
Earlier, Mr. Cooper had charged that the language of the measure,
as drafted by Mr. Corcoran and other Administration officials, was but
a further step toward Government control of industry.
"There is a present tendency," the Ohio Republican said, "to control
the farmer, to control the sugar indttstry, &c." "I want to know how
far this process is going to be carried."
Mr. Corcoran answered Mr. Cooper by stating that he did not think
anyone connected with the drafting of the bill would mind an alteration
In its language to make certain that Federal Trade Commission, or any
other Government agency, would not be granted power to govern the
distribution of securities in industry. However, Mr. Corcoran said, he
did not believe the proposed Act, as now drawn would give such broad
authority.
Jurisdiction Over Capital.
"There has been no intent," the witness said, "to steal a jurisdiction
over capital. It's a red herring drawn across the trail by the Stock Ex.change."
Mr. Corcoran added that Richard Whitney, President of the New York
Stock Exchange, had circularized corporation executives to the effect that
the bill would give the Federal Trade Commission authority to veto security
issues and thus prevent the flow of capital into any branch of business
which, for any reason, the Commission disapproved. Corcoran said, in
reality, it would require "a stretch of the Act," to give the Commission
any such power over securities.
Representative Cooper declared that the bill provides the Federal TradeCommission "can prohibit stock from being put on the Exchange," and
asked Mr. Corcoran if this were not true.
The witness replled that the provisions under attack had been placed
in the bill to correct Stock Exchange listing requirements, which he characterized as "rather hopelessly inadequate." The provisions were intended
to give the stockholder an idea of what his company is worth, to make sure
that enough information gets out to the public.
Broad Commission Powers.
Earlier Mr. Cooper, in attacking the sections in question, had asserted
that power was given to the Trade Commission in the bill "far afield from
regulations of stock exchanges."
"Apparently," Mr. Cooper had said, "no issue can be put on the market
unless it complies with the rules and regulations of the Commission. This
is control of the disposition of private capital.
"Suppose it is said that we already have enough of leather or steel industries, then this bill gives the Commission power to prevent such industries
from further financing—the power to stop them from putting stocks on
the market."

Fletcher Rayburn Bill for Stock Exchange Regulation
Would Eliminate not only Speculation but also the
Exchanges According to President O'Brien of
Chicago Stock Exchange.
The Fletcher-Rayburn bill for Stock Exchange regulation
was discussed by Michael J. O'Brien, President of the
Chicago Stook Exchange, in an address to members and
partners of member firms on Feb. 16. Mr. O'Brien described
the bill as so drawn "that it not only eliminates speculation
but also the Exchanges." Incidentally he referred to the
"Roper plan," which he said "was very fair and created
hopes in the minds of everybody in our business that any
bill written would be fair." President O'Brien in his corn-

Volume 138

Financial Chronicle

meats on the Fletcher-Rayburn bill said "it not only controls
the exchanges by the Federal Trade Commission, but provides for the control of every issue listed on the Exchange by
setting up rules and regulations for those companies that are
burdensome." Mr. O'Brien read in part an analysis of the
bill in which it was stated that "the first tendency of the
act will be to cause a very considerable part (perhaps a considerable majority) of the securities which are now listed on
exchanges to be delisted." Various other objections to provisions contained in the bill were dealt with in Mr. O'Brien's
statement.
Effect on Traders' Loans of New Stock Exchange Bill—
Fletcher-Rayburn Measure Cuts Out 12 to 50% of

Collateral, Brokers Find.
A survey prepared by approximately 30 of the largest
firms holding membership in the New York Stock Exchange
shows, according to a report of it made on Feb. 19, that
from 12 to 50% of the collateral carried with them by their
customers would be deprived of loan value by the FletcherRayburn bill to regulate the securities markets. In the
New York "Times" of Feb. 20,from which we quote, it was
stated that the survey was prepared with a view to ascertaining the effect of the bill's section which would make it
unlawful for brokers to extend credit to customers on securities not registered on an approved exchange. The "Times"
added:
This clause, brokers said yesterday, would intensify the deflationary
effect of the 60% margin requirement established by the bill. Many
much
of the accounts carried by customers of brokers have margins of
less than 60%,and if the unlisted stocks that are owned by many customers
would
customers
of
were deprived of all loan value a substantial proportion
have to put up additional margin or would have to liquidate all or part of
their holdings.
Unlisted Ratio Lower in East.
The survey indicated that in some branch offices of Stock Exchange
houses in Western and Southern cities the proportion of unlisted collateral
was as high as 50% and that the average was much lower in Eastern cities.
The average for the entire country was put at about 18 or 20%.
Among the securities classified as unlisted by the brokers are those
traded on an "unlisted basis" on the New York Curb Exchange, and on
some minor securities exchanges in New York and other cities.
The survey has been prepared by brokers for their own information
and to assist the Senate Committee on Banking and Currency in appraising
the effect of the margin requirements of the Fletcher-Rayburn bill. It
has indicated, brokers declared, that the bill would cause selling of securities
on a large scale by speculators who would have to place their accounts in
position to meet the bills' requirements.

members.
appointed
We suggest that this Authority be composed of two members
Secretary of
by the President; two Cabinet officers, who might well be the
appointed by the
the Treasury and the Secretary of Commerce; one person
two persons
Open Market Committee of the Federal Reserve System; and
New York Stock
the
by
designated
representing stock exchanges, one to be
exchanges in
Exchange and the other to be elected by the members of those
primarily
the United States, other than the New York Stock Exchange, that
would not only
offer a market place for securities. Such an Authority
of the
benefit
the
have
represent the interests of the public but would
connection
opinions and advice of two Cabinet officers, and through its
would be
with the Open Market Committee of the Federal Reserve System
States. It
in close contact with credit conditions throughout the United
exchange
of
knowledge
would also include men who had detailed technical
operations.
to
We suggest that this co-ordinating authority be given plenary power
require
control the amount of margins which members of exchanges must
have
and maintain on customers' accounts; and further, that it should
preplenary power to require stock exchanges to adopt rules and regulations
unfairly
which
venting not only dishonest practices but also all practices
Without
speculation.
stimulate
unduly
or
influence the price of securities
attempting to define, at this time, the scope of these powers, we believe that
of
they should include the power to fix the requirements for the listing
opsecurities; the control of pools, syndicates and joint accounts and also
the
control
to
power
the
prices;
market
tions intended or used to influence
circulation of rumors or statements calculated to induce speculative activity,
emthe use of advertising and the employment of customers' men or other
to
ployees who solicit business; to the end that all practices which may tend
have
also
should
authority
create unfair prices may be eliminated. This
power to study, and, if necessary, to adopt rules in regard to those cases
where the exercise of the function of broker and dealer by the same person
short
is not compatible with fair dealing and to adopt rules in regard to
is
selling, if it should become convinced that regulation of this practice

Mr. Whitney to Attack Bill.
Richard Whitney, President of the New York Stock Exchange, is scheduled to appear before the House Committee on Inter-State Commerce
on Thursday to testify on the proposed legislation. He is expected to attack
vigorously many features of the bill on the ground that it would virtually
end trading on the Exchange.
Roland L. Redmond, counsel for the Exchange, and Raoul E. Desvernine, counsel for the Association of Stock Exchange Firms, will present briefs to Congress for their clients on the constitutionality of certain
phases of the bill, as well as on problems it would raise.
E. Burd Grubb, President of the New York Curb Exchange, will represent that institution at the Washington hearings.

Hearing Before House Committee on Fletcher-Rayburn
Bill to Regulate Stock Exchanges—Richard Whitney, President of New York Stock Exchange, Suggests Creation of Stock Exchange Co-Ordinating
Authority to Exercise Regulatory Power.
A suggestion, in behalf of the New York Stock Exchange,
incident to the pending legislation for the regulation of stock
.exchanges, was made this week by Richard Whitney, President of the New York body, that there be created a Stock
Exchange Co-ordinating Authority to exercise regulatory
power. The suggestion was made by Mr. Whitney at the
hearing, on Feb. 22 in Washington, before the House Committee on Inter-State and Foreign Commerce. It was.proposed that the authority consist of seven members, to be
-composed of two members to be appointed by the President;
two Cabinet officers "who might well be the Secretary of the
'Treasury and tile Secretary of Commerce"; one person appointed by the Open Market Committee of the Federal
Reserve System, and 2 persons representing stock exchanges.
It was suggested that the power to control margins be lodged
with the authority, and among other things it was proposed
that the scope of the powers of the authority include "the
•control of pools, syndicates and joint accounts, and also
options intended or used to influence market prices. • Mr.
Whitney's suggestions were presented as follows:
Mr. Chairman, as I stated in my opening remarks, the New York Stock
Exchange has constructive suggestions to make in regard to the pending
legislation for the regulation of stock exchanges. These suggestions are
naturally subject to the question of the constitutional power of Congress to
•enact legislation regulating the business of stock exchanges and their members.
The purpose; to be accomplished by such legislation are: First, the prewention of fraudulent practices affecting stock exchange transactions;




1321

amount of credit for
Second, the prevention of the use of an excessive
which, though
security speculation; and. Third, the elimination of practices
not fraudulent, permit the manipulation of security prices.
legislation is
The most important question in regard to any regulatory
power. Obthe determination of what body shall exercise the regulatory
authority, must
viously this body, whether it be called a commission or an
throughout the
include persons who are familiar with credit conditions
with the technical
United States and also persons who are fully conversant
In addition,
exchanges.
problems connected with the operation of stock
individuals
a majority of the members of such a body should be outstanding
the creawho would represent the public. Having this in mind, we suggest
of seven
tion of a Stock Exchange Co-ordinating Authority to consist

necessary.
These suggestions represent the considered view of the New York Stock
Governing
Exchange and I have been authorized to present them by the
Committee of the Exchange. I can say confidently that the Exchange
will co-operate fully in attempting to prevent unwise or excesssive speculation and abuses or bad practices affecting the stock market.

Besides the foregoing Mr. Whitney presented a lengthy
statement discussing the bill in detail, indicating the effect
of its various provisions; to the extent that this bill seeks to
regulate exchanges where it will destroy the free and open
market for securities," said Mr. Whitney, "the liquidity of
the one form of investment that has remained liquid throughout the iepression will certainly be impaired if not entirely
destroyed." From a Washington dispatch Feb. 22 to the
New York "Times," we quote in part as follows:
For National Incorporation Law.
was recomA Federal law governing the incorporation of companies
the fact that the
mended by Mr. Whitney, who directed attention to
the world
United States atone among the great commercial countries of
Fletcher-Rayburn
has no national corporation law. The provisions of the
companies
of
the
management
in
acts
Bill which seek to prevent dishonest
"are undoubtedly sound," he declared. "but regulations of this character
have no proper place in a bill regulating stock exchanges and stock excharge
practices."
Mr: Whitney's statement, which was interrupted so frequently by
questions and recesses to permit the members of the committee to attend
roll-calls that he was unable to finish it this afternoon, attacked in detail
almost every section of the Fleteher-Rayburn ohl. The attack was mainly
to
directed against the power entrusted to the Federal Trade Commission
regulate, which he termed power to dominaze; the margin requirements
presand the provisions abolishing short-selling except under regulations
scribed by the Trade Commission.
against
Also he directed his attention particularly to the provisions
manipulation and pools, the segregation of the function of broker, deater
and specialist, the penalties provided for violations, the definitions, the
prohibition agains loans by banks and brokers for speculative purposes on
unlisted stock, the attempts to regulate "over-the-counter mark ts," the
requirements for quarterly reports by corporations listed on the Exchange,
and the restrictions on brokers' financing.
Both tn his statement and under questioning. Mr. Whitney ad.nitted
the necassity for margin requirements, but declared that the bill computed the margin requirements on a wrong basis, made them too high, and
the formula was too rigid.
"I am convinced," he said, "that the fixed minimums contaimd in subdivision (b) of Section 6 are utterly unworkable and will certainly operate
in a manner which will be detrimental to the public."
Speculation Is Defended.
Questioned by Representative Lea of California, Mr. Whitney said the
margin standards of the New York Stock Exchange were designed to protect the lender, and that in every case they are designed to make "each
account stand on its own feet as far as its banking is concerned."
The bill as it stands, he declared, would in many cases drive marginal
accounts off the Exchange completely and eliminate speculation.
"And if speculative activity is eliminated, only the long-time investor is
left in the market," he added. "The tendency then would be for people to
buy in ttmes when the country felt that it was prosperous and to sell in
times when it felt the reverse, thus precipitating crises which speculation
and, particularly short selling, checked, thus contributing to stabilization
of the market.
As to the desirability of controlling speculation and wide fluctuations of
stock prices, Mr. Whitney admitted that it was desirable, but said that the
Stock Exchange was willing to leave this control to "that power having
control over the credit situation in this country."

1322

Financial Chronicle

Bill for Regulation of Stock Exchanges Regarded by
Fenner & Beane as Likely to Destroy Rather Than
Regulate Business—Opposed to Hasty Legislation
on Matter of Concern to Every Investor.
Fenner & Beane, one the the largest wire houses in the
country holding membership on the New York Stock Exchange and 22 other securities and commodities exchanges
mailed letters to their customers on Feb. 17frankly admitting
advantage of constructive regulation of stock exchanges
but seeking the aid of every investor in combating "any
hasty or vindictive legislation on a matter of so great concern
to every investor in the country." The letter said:
We want your help in forming a definite public opinion which will discriminate between constructive regulation, on the one hand, of a kind which
will strengthen and make more effective the bringing of capital to the use
of legitimate industry and furnish a ready market for corporate securities.
and vindictive or unthinking legislation, on the other hand, which will, in
its determination to eradicate evils, destroy a great mechanism for the
gathering and distributing of credit and capital.

Regarding the degree of public prejudice existing to-day
against the securities business, the letter says: •
We are convinced that Congress can, if it will, have the advice and cooperation of those whose business it is primarily to deal upon and through
the New York Stock Exchange, in the constructive regulation of a business
which is an essential to the continued growth and prosperity of this country. If that business has fallen into disrepute, it has so fallen only because
you and we and others like us have considered it sufficient perhaps if we
conducted our business honestly and intelligently and did not concern ourselves too much with those who were trying to get something for nothing,
and perhaps because we have wrongly assumed that people generally understood the real part which that institution plays in commerce and industry.

An unprejudiced study of the whole situation is necessary
in the opinion of the firm, which says:
We ask you to join us not in combating a regulation of the business we
are engaged In and which you are making use of through us, but to join
us in insisting that all of the provisions of any Federal act governing exchanges be given a full and unprejudiced study and that careful, mature
and expert consideration be given to legislative provisions that may otherwise destroy rather than regulate, either because of the potent hatred of a
mere symbol such as "Wall Street" or inadvertently through the failure
to understand the mechanism of markets.
If we. for instance, are forbidden to loan on stock exchange collateral
with a constant and ready market, no greater proportion of the current
value than is loaned by insurance companies and savings banks on real
estate collateral with no readily ascertainable value and no immediate
market, then truly your ability to make full use of your capital is seriously
and unnecessarily hampered; and if, in addition, we are forbidden to give
effect to any values in the making of loans on securities and property not
listed or registered,'you are still further limited and hampered in the full
use of your property.
We suggest also that there is no more reason for gin= to the Federal
Trade Commission broad plenary powers over so important branch of our
National credit system than there would be for giving it like power over
National banks. If power is to be vested In the Government let it be in the
financial arm of the Government. No regulation can be effective or is
desirable unless it is co-ordinated with banking and with Governmentfinance

In conclusion, the firm says:
We believe that we are once more approaching firm ground and that we
are going forward to even greater prosperity than we have known in the past.
It is unthinkable that we should have learned nothing and should again
plunge into an orgy of speculation, but it is just as unthinkable that we
should deliberately retard the flow of capital into industry both from our
own people and from abroad.

Senate Hearing on Bill for Federal Regulation of Stock
Exchanges—Senator Fletcher Alleges Nation-wide
Propaganda by New York Stock Exchange Against
Measure.
A statement in which he alleged that country-wide propaganda "has been turned out by the New York Stock Exchange against the bill to regulate stock market activities"
was made before the Senate Banking and Currency Committee by its chairman, Senator Fletcher, at the hearing
before the Committee on Feb. 21 on the Fletcher-Rayburn
bill, designated as the "National Securities Exchange Act
of 1934." Senator Fletcher declared that "the facts have
demonstrated that the power of Stock Exchange authorities
to subject the interests of the Nation to the purposes and
profits of stock brokers and Stock Exchange officials must
be ended." "We shall insist," he added, "when the Stock
Exchange officials come down here to talk about the bill,
that they deal with these facts and leave behind them the
propaganda machines which they have built up for many
years and have operated by the expenditure of hundreds
of thousands of dollars taken from the American people."
Senator Fletcher's statement follows:
I have noted with interest the country-wide propaganda which has been
turned out by the New York Stock Exchange against the bill to regulate
stock market activities. The Exchange has followed the same practice
during the past 25 years every time that proposals have been made for its
regulation.
Fortunately, this time the American public will have the advantage of
testing propaganda with facts. That test will prevent the successful use
of smooth words to cover unconscionable deeds. The representatives of
the New York Stock Exchange, instead of uttering glib generalities, must
explain away the mass ofsworn evidenceshowing how its facilities have been
used by a reladvely small group of men for their own profit at the expense of
the investing public.
The propaganda released by the Exchange officials is intended to persuade the people that regulation of that Exchange and the other Exchanges




Feb. 24 1934

by the Federal Government will hurt business. Whose business? Only
that of brokers who have lined their pockets by disregarding the interest
of their customers.
Government regulation will certainly hurt those market operators and
speculators who have used the facilities of the Stock Exchanges of the
country to mulct the public out of millions, and,in sum total, out of billions
of dollars. But regulation will not hurt the investor or the business man.
On the contrary, if we do not have regulation the investor and the business
man are going to continue to be hurt as they have been hurt in the past.
The proof of that is overwhelming.
1933 Collapse.
Only last Summer—in 1933—after the country had started on the road
of recovery, the facilities of the New York Stock Exchange were used by a
group of selfish men .n such a way as to give them very large profits. Their
method of doing business through the medium of pools, manipulations.
options, puts, calls and market rigging, left the public holding the bag as
usual when the market collapsed in July 1933.
It collapsed because it was run by these men as a gambling and manipulative market for insiders against outsiders. The collapse shook the confidence of business men and took away the money of investors. It is only a
few months since that collapse slowed up our recovery, and it was some time
before the business community was able to get into its stride again after
recovering from the misleading and dangerous activities permitted on the
New York Stock Exchange.
This is not a new story. The same thing happened in 1930. Business
had apparently begun its slow movement upward. At once the opportunity was seized by market riggers and market operators to unload stocks
after running prices up to absurd levels, and to fill their own pockets with
the money and the savings of the American people.
When the New York Stock Exchange sends out its propaganda and
when its representatives appear before the Congressional committees,
those representatives should explain this constant recurrence of gambling
and rigging and this constant interference by such methods with,business
recovery.
The Stock Exchange representatives will have to explain, for example
such evidence as was produced before the Senate Banking and Currency
Committee last week,showing that in the year 1933, a year of alleged penitence and reform, the manipulators ran the price of certain shares up so
high that during a three-day market collapse the market value of these
shares dropped to one-third of the dizzy prices at which the general public
was induced to come in and buy.
Let the New York Stock Exchange people deal with facts, not promises,
with sworn testimony, not propaganda. Let them explain away the blows
they have inflicted on business, on legitimate trading, and not divert
attention from existing evils by broad generalizations and threats to the
effect that Government regulation of the very men who have caused such
damage to business will in itself constitute a bar to business recovery.
Stock Exchange Reforms.
As a matter of fact, the frantic elaborateness of the propaganda of the
Exchange is in itself a confession that the history of its activities right
down to the present day puts it on the defensive. The Exchange,convicted
by its own laxity and negligence or impotence and by the I tproper activities
of many of its members, now comes forward and says tha• it has reformed.
But on the very day last week that its reforms were 'Atide public, the
Senate Committee on Banking and Currency heard tes ,mony of recent
activities on the New York Stock Exchange which those IN 'orms would not
be adequate to eliminate. In other words, the financ .1 skullduggery
described in our hearings last week could be perpetrated over and over
again and is likely to be perpetrated over and over again, &ven under the
Stock Exchange's new rules.
The difficulty with the self-reform of the Stock Exchange is that once
Congress is adjourned, the Exchange can modify its rules again. But
there is a worse difficulty. That difficulty was disclosed at our hearings
last week. That difficulty is the laxness, if not the incompetence, of the
Stock Exchange authorities in enforcing even the inadequa.e rules heretofore adopted by the Exchange.
They were not successful in preventing the manipulations and market
rigging of 1933 after they claimed to have turned over a new leaf, and
achieved complete reform.
Apparently they did not even know that such reprehensible use of the
New York Stock Exchange was being made by manipulators, among them
members of the Exchange itself.

investigation Bv Exchange.
Indeed, when the Senate Committee last summer asked the Stock Exchange to investigate the stock market collapse of 1933 and to report to
the Senate Committee on pools and other operations of that kind, the
Stock Exchange authorities conducted an invescgation of several months
and then reported to us that nothing improper had been found.
It was not until we continued our hearing on the subject last week that
the Stock Exchange authorities, according to their own statement, learned
of the gross improprieties, of the gambling, of the manipulation, of the
rigging which took place in 1933 on the New York stock market, and
which our agents were able to uncover without the aid of, and against
the assurance to the contrary by the Stock Exchange authorities.
Apparently these Exchange authorities cannot protect the public, do
not know when the public is being mulcted. are unable to find 0116 those
things even when they make an investigation, and must rely upon public
authbrities to bring the facts to light.
The American public can no longer afford to depend upon such uninformed and inadequate self-regulators of these markets places.
Every one who heard the evidence before the Committee last week
was struck by the lameness of the excuses advanced by the Stock Exchange
representative at those hearings. The representative admitted, as he was
compelled to admit, that the Exchange had been lei and had permitted
fraudulent transactions of large size within recent months.
But the representative claimed that the Exchange had been deceived.
Case after case was brought to his attention. Each time his excuse was
that the Exchange authorities had been misled.
If these excuses are to be Oven credence, It would appear the.; the authorities of the Exchange are a group of naive, trusting and gullible men ready
.43 buy the first gold brick offered to them. But they paid for these gold
bricks with the money of investors, not with their own.
It is high time that the regulation and prevention of indefensible practices and deals and of market rigging be placed in the hands of men who
will not seek to excuse their failure to perform their duty by painting
portraits of themselves as guileless and gullible guardians of the investing and business public.
Alleged "Propaganda."
Certain members of the New York Stock Exchange, realizing that
they have discredited themselves by their own record, have sought to
wage a fight against the bill intended to regulate their activities by enlisting the support of large corporation executives. The authorities of the

Volume 138

Financial Chronicle

execuNew York Stock Exchange have sought to warn these corporation
tives that they will be damaged if the bill for regulating the exchanges
bill
becomes law. This propaganda is correct in one respect only. Thewith
will deprive those corporation executives who have dealt dishonestly
future.
the
in
dealing
dishonest
their stockholders of opportunity for such
When Mr. Whitney' comes down to explain his propaganda, he must
Senate
be ready to explain the testimony which was introduced before the
stocks
committee last week. The testimoney showed that with respect to
had
executives
corporation
listed on the New sork Stock Exchange,
employed dummies to organize subsidiary corporations and to effectuate
schemes by which these corporation executives deprived their own stockholders of their legal rights.
why
The President of the New Iork Stock Exchange should explain
It was that the Exchange not only did not prevent but by its actions and
permission enabled those corporation executives to run pools and to make
enormous personal profits at the expense of their own stockholders. Implicated in these transactions were leading members of the New York
Stock Exchange.
It is surprising to me that the officials of the New York Stock Exchange
believe that they can induce the executives of our large corporations to
act as cats paws for the Stock Exchange and to run the risk of opposing
legislation aimed at dishonest corporate practices and dishonest corporations executives.
The facts have demonstrated that the power of Stock Exchange authorprofits of
ities to subject the interests of the nation to the purposes and
Insist
stock brokers and Stock Exchange officials must be ended. We shall
when the Stock Exchange officials come down here to talk about the bill,
manuthat they deal with these facts and leave behind them the propaganda
up for many
factured by the propaganda machines which they have built
thousands
of
hundreds
of
years and have operated by the expenditures
of dollars taken from the American people.
propaganda
In the face ofthe evidence they will need something more than
securities.
to satisfy the public that they furnish an open and free market for

Hearing on National Securities Exchange Bill Before
House Committee—E, A. Goldenweiser, Research
Director for Federal Reserve Board, Says High
Margin Provision of Stock Exchange Bill Would
Restrict Credits—Views of W. Thomas of Federal
Reserve Board, Thomas Corcoran, Counsel for
RFC, and F. Y. Presley of National Investors'
OrigiCorp.—Proposed Legislation Said to Have
nated in Federal Trade Commission.
Federal regulation of the securities markets was recommended on Feb. 16 by E. A. Goldenweiser, Directoz of Re'search and Statistics for the Federal Reserve Board, at the
hearing on the National Securities Exchange bill before the
House Inter-State Commerce Committee. Hearings on the
bill—providing for Federal regulation of stock exchanges—
were begun before the Honse Committee on Feb. 14, as we
Indicated in our issue of Feb. 17 (page 1145). Regarding
the hearing before the House Committee, on Feb. 16, Washington advices on that date to the New York,"Herald Tribune" said:
Dr. Goldenweiser said that the stock market had been diverted Irons its
legitimate purposes in some instances and that control of the exchanges was
desirable to promote sound banking and business stability. He recommended, however, that the bill be modified in some particulars, including
the present high margin requirements.
"It is not a good time to restrict credit," he said. "The margin provisions are likely to result in a restriction of credit. They should be made
to apply to future loans or perhaps to loans at the time they are made, but
probably should not be required during the whole life of the loan. There
should be a little less rigidity and more discretion."
Suggests Promissory Notes.
Dr. Goldenweiser suggested also that persons buying stocks on margin be
compelled to sign notes to their brokers for the balance. "They incur the
obligation, but many of them don't know it," he explained.
Thomas Corcoran, of counsel for the Reconstruction Finance Corporation,
one of the authors of the National Securities Exchange Bill, said that comprehensive regulations were needed for "protecting the fellows on the outside from the insiders." He asserted that the recent pools in alcohol stock,
now being investigated by the Senate Banking and Currency Committee, had
"taken the little fellow's shirts" and "put ants in his pants." Ile remarked
that under the present rules of the Stock Exchange "the little fellow has a
better chance of recouping his market losses by playing the horses."
Explains Drafting of Bill.
Mr. Corcoran was asked who had participated in the drafting of the
bill. He said there was "no mystery," and that a "lot of fellows" had
taken a hand. The proposed legislation originated in the Federal Trade
Commission, with Commissioner James M. Landis and other officials, he
said, and Ferdinand Pecora and members of his staff of the Senate Banking
and Currency Committee were consulted. The actual drafting work, he
added, was done by Benjamin Coheh, who is in the Railroad Division
of MITA.
"Then we had some fellows down from New York in the dead of the
night," Mr. Corcoran said. "Like everyone else in New York, they were
afraid to talk about the bill," he explained.

On Feb. 15 short selling on the stock market was termed
a "cheap, undignified" practice which "should be legislated
out of existence" but did not have any appreciable effect on
market values. by Fred Y. Presley of New York, President
of the National Investors' Corporation, testifying before the
House Committee. From a dispatch on that date from Washington to the New York "Times" we also quote:
Mr. Presley, who said he represented four investment trusts with holdings
of a total market value of $30,000,000, declared that short selling almost
Invariably reached its peak at the time the market was starting down, and
that "its proponents are unable to prove their contention that it acts as a
qabilizing factor on the market."




1323

of present Exchange
Mr. Presley declared that the most important reform
public reports by all corpopractices would be to require full and frequent
rations listed on the Exchange.
testimony by Woodlief
The rest of the hearing was devoted to technical
Reserve Board.
Thomas, a member of the research staff of the Federal market operations
for stock
Mr. Thomas outlined the system of credit
that the American system
now obtaining both here and abroad, declaring
operations than that of foreign
gave far larger credit for stock market
or securities could open I
countries, and that anyone with sufficient cash
country.
this
in
account
brokerage

legislation
An opinion that the proposed stock exchange
was exloans
bank
long-time
some
would force the call of
Commerce
pressed before the House Inter-State and Foreign
the WashingCommittee by Woodlief Thomas, according to
15, from
Feb.
of
Journal"
ton account to the "Wall Street
taken:
also
is
following
which the

Representative Marland of
The statement followed sharp questioning by
attention of the Committee
Oklahoma (Dem.), who sought to bring to the
regulation the manner in
conducting hearings on proposed stock market
effect the relationship between
would
discussion
under
now
bill
the
which
banks and their customers.
particularly small ones,
Representative Marland asserted that many banks,
of stock market collateral which
are carrying customers' loans on the basis
result of the passage of this
even now is below the value of the loan. The
loans."
bill, he said, "would make it necessary to call those
if the legislation were
Mr. Thomas stated that this would be the effect
approved as now written.
Says More Margin Would Be Needed.
make it necessary for
Earlier, Mr. Thomas had said that the bill would
bank customers to put up more margin.
Representative Marland
"Regardless of the credit rating of a customer,"
of his security or furnish
had said, "he would be required to sell part
carrying him for
additional security, although the bank may have been
years."
the Marland Oil Co.,
The Oklahoma Congressman, one time head of
asked Mr. Thomas if this observation were not true.
"Yes," the Reserve Board expert replied.
might upset
Representative Marland then observed that such a provision
Mr. Thomas if he did
the relationship of banks and customers. He asked
be rewritten.
not believe this section of the bill relating to banks should
opinion,
Mr. Thomas, although reluctant to express any affirmative
answered that in his personal view such a course might be desirable.
Mr. Presley Heard.
of National
Previously, the Committee heard Fred Y. Presley, President
investment
Investors' Corporation of New York, a holding company for
their stocks
trusts, urge complete publicity of accounts for companies listing
on national exchanges.
general
Mr. Presley was followed by Mr. Thomas, who, after outlining in
told the
terms the technical methods of financing security operations,
efficient
Committee that the New York call money market was "the most
in the world."
in
Because of this efficiency, Mr. Thomas said, stock market speculation
in any other
the United States has better financing than similar operations
the
on
effect
had
its
country. This ease of speculation, he added, has
general credit situation.
credit for
However, the Reserve Board expert said that charges that
true only
commercial enterprises had been diverted into the market were
banks give
"to a very limited extent." "Generally," he declared, "the
from the call
their customers preference and will withdraw their funds
money market for this purpose."
On Credit Expansion.
credit, he
The market does stimulate rapid expansion and contraction of
undue
continued, and in reply to questions remarked that the extension of
credit influenced by the market had a bad effect.
Indirectly, new securities issues are financed by bank loans, he explained.
is a
It is possible, he added, to have a situation where credit expansion
same
reflection of speculative enthusiasm on the stock market. At the
serves
time, he said, a rush to liquidate on the part of market operators
to contract credit, thus having considerable influence on the business
situation.
Nevertheless, the Reserve Board expert stated that the growth of the
country had been dependent to a large extent upon the presence of an
efficiet stock market, and that "it is important to maintain an efficient
market."
Questioned by Representative Lea (Dem., Calif.) as to whether or not
the market had served to stimulate gambling, Mr. Thomas replied:
"I prefer to confine my testimony to economics rather than morals."
Mr. Presley told the Committee that he regarded sections of the proposed
Exchange Regulation bill as "striking a major blow at one of the weakest
spots in competitive business." He said he found the Stock Exchange bill
has two major aspects:
(1) "Restriction of credit for speculative purposes and protection to the
small investor.
(2) "Proper and adequate dissemination of information on corporations
whose securities are listed on national exchanges."
Mr. Presley said he regarded the publicity qualifications as "far the
more fundamental of the two." He added that lithe public is kept fully
informed regarding earnings, &c., of corporations whose stocks are listed
on exchanges, there will be "much less inducement or basis for pool operations, short selling, and other aspects of organized exchanges which have
been cheap, undignified and pretty costly to small investors."
"Pool operations," Mr. Presley added, "are reared largely on very
limited information about stocks manipulated to higher levels." He asserted
the "only way to make a profit," on pool operation, is "to distribute stock
to uninformed people."
In his experience, he said, most pools are conducted in the stocks of
corporations not reporting quarterly and which have been giving people as
little information as possible.
Complete publicity, he continued, would prevent stocks trot moving as
high in periods of prosperity.
Discussing publicity as a check of short selling, the witness observed
that most short selling is profitable where stocks rise to untenable price
levels.
"All corporations with shares outstanding in the hands of the public," he
said, "should be required by legislation to report quarterly, and promptly,
at the end of each quarter."

1324

Financial Chronicle

Urges End to Short Selling.
Complete abolition of short selling was recommended by Mr. Presley.
Asked by Congressman Marland concerning the practice, he stated "It
-should be legislated out of existence."
Under further questioning by Congressman Lea of California, as to the
-operations of short selling, Mr. Presley denied he was competent to explain
the system in detail.
"I am reluctant to explain something on which I am not certain of the
technique," he stated.
In his experience he had found that where corporations were unwilling
to' afford reasonable information "either the company was on the toboggan
and unwilling to disclose it; or it has been pursuing practices it does not
care to disclose; or it has been sponsored by certain groups who have followed
•the public be damned policy," he declared.
Outlines Publicity Views.
Outlining his views on the nature of publicity for companies with listed
stocks, Mr. Presley urged that they should report net earnings for major
-divisions classified by sources. In addition, he said, capital earnings should
'not be included as an ordinary profit to the corporation.
The report also should show, he said, exactly where earnings are coming
from, and the annual report should give in full the value of marketable
securities together with a list of these securities. The witness said he
had found instances where companies had been including securities of the
company itself, or non-marketable securities, among listed assets generally
regarded by the public as representing cash or its equivalent.
Finally, he added, annual reports should be certified by a disinterested
_public accountant. Some companies, he said, did not follow this practice
of having their statements checked by outside parties.
Before beginning his testimeny, Mr. Presley outlined briefly the investment trusts which he heads, described as National Investors' Corporation,
the parent organization controlling three subsidiary investment companies
whose stocks are held by the public generally. The publicly owned comTanies, whose character he described as "virtually mutual," are the Second
National Investors' Corporation, the Third National and the Fourth National.
Replying to Committee questions, he said the holding company, National
Investors' Corporation of New York, was not controlled by any particular
.banking group.
Trusts Have 17,000 to 20,000 Stockholders.
The witness said that National Investors' was first organized in 1927 and
began to /unction on a practical basis at the end of 1928. The combined
investment trusts which he heads now have from 17,000 to 20,000 stockholders, he stated.
He listed the three methods as: Financing of individual trader by his
'banks; an open account at a brokerage commission house, and brokers'
loans.
Generally, Mr. Thomas said, the banks can afford to take mere risks in
carrying a customer because of additional safeguards which they place
around their loans. At times in the past, however, the witness said, banks
have occasionally been in difficulty because of their financing of exchange
-transactions. This has been occasioned largely through brokers selling
their clients out.

In our item of a week ago (page 1145) as to what Commisaioner Landis, of the Federal Trade Commission had to say
at the House Committee's hearing, it was indicated that he
urged the utmost flexibility in the administration of the bill
for Stock Exchange regulation, a dispatch from Washington
(Feb. 14) to the New York "Times," from which we quoted,
reporting Commissioner Landis as stating that the New
York Stock Exchange requirements and standards were
higher than any of those of any other exchanges.
Inquiry into Alleged "Alcohol Pool" by Senate Banking
and Currency Committee—Officials of American
'Commercial Alcohol Co. Had Pool in Their Own
Stock, According to Russell R. Brown of Corporation—Testimony of Frank Altschul, Chairman
of Stock Exchange Listing Committee.
The investigation into alleged pool activities in alcohol
-stocks, begun on Feb. 14 before the Senate Banking and
Currency Committee, brought forth testimony, on Feb. 15,
by Russell R. Brown, Chairman of the Board of the alcohol
•corporation, that he and other high officials of the corporation (we quote from a Washington dispatch to the New
York "Times") had organized a "pool" in Commercial Alcohol stocks last spring and that as a part of this operation
thousands of additional shares were listed on the New York
Stock Exchange with the approval of the Listing Committee.
The dispatch went on to say:
Says All Made Some Profit.
Theme who participated in the "pool" in addition to Mr. Brown were
Richard Grimm, President; William S. Kies, Vim-President and Treasurer;
Phillip Publicker and Ilumphrey Chadbourne, all of New York City and
all members of the Board of the Corporation. They all made some money,
but it was not a staggering sum, said Mr. Brown. He said his part of
the profits was only $20,000, which was less than other losses he had
incurred in what he described as "stabilizing operations" which had the
approval of the legal advisers of the Corporation. These advisers, all of
them directors, were, he said, ex-Judge Warren W. Foster, Edward S. Paine
and Cecil Page, of New York City.
The disclosure of the "pool" followed several hours of inquiry into the
acquisition by the American Commercial Alcohol Corp. of the control of
the Noxon Chemical Products Co. and the Maister Laboratories, Inc., the
former a Maryland and the latter a Pennsylvania corporation. In both
instances flontrol was acquired by "dummies" acting under orders from
Mr. Brown.
C. C. Capdevielle, who Mr. Brown said is a molasses broker, was the man
in whose name the Noxon Co. was acquired, while the person who acted
in the Maister Laboratories deal was K. II. Phagan, an employee of the
alcohol corporation. Messrs. Capdevielle and Phagan gave their personal
notes to close the transaction, Mr. Capdeveille, with his wife as endorser,




Feb. 24 1934

signing a note for $270,000, while in the case of Mr. Phagan the note was
for $180,000.
Needed $450,000 Capital.
Mr. Brown testified that the Corporation in 1933 needed 4450,000 additional working capital, and stock transactions, involving the purchase of
the Noxon and Maister properties, it was indicated, were directed largely
to the acquirement of this capital. The pool operations were managed, he
said, by Thomas E. Bragg, at the time a stock operator in New York, but
not a member of the New York Excliane.
The backbone of the "pool" was an option for 25,000 shares at the
Brown-Bragg price of $18 a share. This option was executed May 2 1933,
although it was not approved by the Board of Directors until the following
May 31. The total additional listing on the Exchange was 66,000 shares,
of which 41,000 were earmarked for Commercial Alcohol stockholders of
record.
Reading from the minutes of the Board of the alcohol corporation in the
period from May to July 1933, Ferdinand Pecora, counsel to the Committee,
found no reference to the Meister and Noxon transactions or the "pool."
Mr. Brown's explanation was that the matters had been brought to the
attention of the Board members informally.
The Meister transaction, he said, was the purchase of dietary yeast
processes worked out "in the brain of Dr. Hans Meister," a chemist now
in the employ of the American Commercial Alcohol Corp. The most valuable of these processes apparently was a "dry yeast." It has not been
placed on the market, nor is it protected by patent, Mr. Brown said. Dr.
Maister's "benefits" as a result of the transaction are in the form of
royalties, Mr. Brown testified.
"For whom did Mr. Capdevielle act in this Noxon transaction?" Mr.
Pecora asked.
"He acted for me," replied Mr. Brown.
"In other words, he was a dummy?"
"Yes; I suppose that is correct."
Pressed to explain why no commercial advantage has followed the acquisition of the Meister processes, Mr. Brown replied that the process was
not yet out of the experimental state.
Mr. Brown admitted that Capdevielle and Phagan had no "beneficial
interests" in the 25,000 shares involved in the Meister and Noxon transactions.
"And the real purpose," said Mr. Pecora, "was to enable the corporation to issue and sell 25,000 shares?"
"Yes, sir," Mr. Brown answered.
Mr. Pecora, reading from Stock Exchange records, called attention to
the fact that at the time the Bragg option was entered into, the shares of
the corporation were selling at $18, and on the date the option was approved by the directors, which was May 31, the price was slightly in excess of $33.
Mr. Brown said he did not know who got the profits. Subsequently
he
said he received $20,000. It was at this point that Mr. Brawn
told of
the 1933•pool and named those who participated in it.

At the same hearing (Feb. 15) according to the "Times"
dispatch by Frank Altschul, of Lazard Freres, a Governor
of the Exchange and Chairman of its Listing Committee, is
reported to have admitted that it was difficult to enforce
the regulations set up to prevent the listing of questionable
stocks. Fortunately, he said, the instances of deception at
the expense of the Listing Committee had been few, among
those of reednt years being the Kreuger & Toll, and General
Theatres Equipment Corporation listings. According to the
dispatch, Mr. Altschul was called to tell what he, as a member of the Listing Committee, knew about the 1933 pool involving stock of the American Commercial Alcohol Corporation, the stock market operations in which are now being
scrutinized by the Committee, preliminary to the hearing by
the Senate Committee on Stock Exchange legislation.
On Feb.16 Mr. Altschul was again heard by the Committee,
the advices from Washington to the "Times" on that day indicating as follows his testimony:
Mr. Altschul said he "was willing frankly to admit" that,
in passing on
the application of the American Commercial Alcohol
Corporation to list
an additional 66,000 shares on the Exchange last year "a
cog slipped somewhere in the office of the Listing Committee."
The "cog" that slipped was failure of the Committee to
investigate the
balance sheet of the Noxon Company, the purchase of which by Commercial
Alcohol was the reason given for the issuance of 15,000
of the 66,000 new
1933 issue.
This statement as supplied to the Exchange estimated the Noxon assets
as worth $700,000, while on the books of the corporation
the value of these
same assets was fixed at $350,000. On the balance sheet submitted to the
Exchange "good-will, licenses or processes" were valued at $380,000 and
on the books of the corporation at $30,000.
"These items, had they been called to our attention, would certainly have
excited our curiosity," said Mr. Altschul, "and we would have investigated.
There is no question but that this was a mistake and a cog slipped somewhere in the office of the Committee."
Asked if the rule requiring that a copy of the application be supplied
to every member of the Exchange' had been followed in the case of the
Commercial Alcohol application, Mr. Altschul replied that this was done,
and added "not a single member made any comment on the statement you
refer to."
Such Lapses Rare, Says Witness.
Such lapses by the Committee in passing on applications are of rare occurrence, Mr. Altschul said. The Committee, he explained, had to
place
confidence in the statements of directors, especially when such statements
are vouched for by reputable counsel.
"I venture to say," remarked Mr. Pecora, "that an examination
of your
records might disclose many more Instances of this sort."

Russell It. Brown was recalled after Mr. Altschul left the
stand, said the "Times" dispatch, which continued in part:

"On yesterday," said Mr. Pecora, "reading from the minutes
of the
corporation of which you are the board Chairman, these minutes fixed your
salary for the year 1933 at $21,000. Is that your salary?"
"No, sir," Mr. Brown replied. "It was fixed at $50,000
at the December meeting of the board."

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Financial Chronicle

"And was dated back to cover the year 19331"
"That is correct," replied Mr. Brown.
Asked why the Stock Exchange was informed that Noxon assets were
worth $700,000 when these same assets were carried on the Noxon books at
$350,000, Mr. Brown replied he had no understanding of it.
"I do not keep books; I do not understand it," Mr. Brown replied when
the question was repeated.
Pecora Presses Brown.
"Yet you must have known June 15 1933, that the assets of Noxon were
reported to the Exchange to include good-will and licenses worth $350,000,
when as a matter of fact these assets were written down on the books at
$30,000?" said Mr. Pecora.
"I do not know now that that item represents only $30,000," Mr. Brown
answered.
"Did you directors know that Capdevielle was your dummy in this Noxon
transaction?"
"Yes, sir."
Mr. Pecora took up next the syndicate formed to dispose of the 41,000
shares which were first offered the stockholders of record and the 25,000
which were issued to take care of the Noxon and Maister Laboratories
deals. In the matter of the 41,000 shares, the stockholders acquired all
but a few hundred, said Mr. Brown. A fee charge of $1 per share was
realized on this transaction, the fee going to Bragg, the syndicate manager.
In the matter of the pool, the participants in which included Mr. Brown
and other high officials and directors of the corporation, Mr. Brown WU
unable to clearly explain why various officers, including himself, appeared
in this transaction through "dummies."
"Was the Board of Directors informed of these secret interests of yourself, Mr. Chadbourne, Mr. Grimm and Mr. Kies?" Mr. Pecora asked.
(Humphrey W. Chadbourne is a director, Richard H. Grimm is President
and William S. Kies Chairman of the Executive Committee of the alcohol
corporation.)
"They were informed individually," replied Mr. Brown.

In the same account it was stated that with two of the
principal witnesses involved in the alleged pool thousands
of miles from Washington, the Committee on Feb. 16 labored
to get the complete story of that transaction which catapulted thousands of shares of Commercial Alcohol common
on the New York Stock Exchange. We quote further as follows from the Feb. 16 dispatch to the "Times":
The pool was managed by Thomas E. Bragg, who is reported to be in
Honolulu, and the account was carried as "No. 296" by W. E. Hutton &
Co., acting for Benjamin E. Smith, who was reported "somewhere in the
vicinity of Melbourne, Australia."
Messrs. Bragg and Smith were described as two of the best-known stock
operators in New York. Mr. Smith is a member of the Exchange. Mr.
Bragg is not a member.
The Committee brought W. E. Hutton & Co. of 52 Wall Street into the
picture in an effort to prove that members of the firm knew that a pool
was operating in May-July 1933, although when asked if any pools or
syndicates were represented on their books had, when questioned by the
New York Stock Exchange, answered "no."
Charles N. Foster, a partner in W. E. Hutton & 0o., who was called
late in the afternoon, identified "Account 296" as the Commercial Alcohol
stock transaction of 1933, and recalled that in August or September an investigation of the account had been made by the Exchange. He said he
did not know whether it was a pool or not, although it "looked like one"
and "had all the external appearances of being one."
Adviser Tells of $65,000 Fee.
Another witness who kept the Committee busy for the best part of an
hour was J. K. Whanger of New York, a young man who described hitnself as an accountant, although not certified as such. He said that he had
been a "financial adviser" to Mr. Bragg, the manager of the Commercial
Alcohol pool, and that for his services as an adviser and in other capacities
Bragg had paid him in December last more than $65,000.
Asked to state specifically what he had advised, he recalled suggesting
to the veteran broker that he buy gold. Mr. Whanger said that he had
no book records of his transaction with Mr. Bragg and that no receipts had
been passed when the $65,000, in three checks, two for $25,000 and one
for $15,000, were handed him by the broker.
"How was this amount of $65,000 for services rendered by you as
financial adviser arrived at?" asked Mr. Pecora, the Committee counsel.
"I don't know," Mr. Whanger answered. "Mr. Bragg always said he
would do something for me. In October or November he told me he had
made $50,000 or $60,000 for me."
"Without any financial outlay by you?"
"That is correct."
"What was your highest income in any year prior to 19334" Mr. Pecora
asked.
"From $6,000 to $8,000," the witness replied.
Mr. Whanger repeated that the payments were for services rendered and
no amount of cross examining could make him change his answer. These
services were largely of an advisory nature, he declared. He usually met
Mr. Bragg at 52 Wall Street. There was no name on the door of the office
used by Mr. Bragg, according to Mr. Whanger. . . .
Young Mr. Whanger followed Mr. Brown, and after he was questioned
about the $65,000 he received from Mr. Bragg, the Committee called Mr.
Foster of W. E. Hutton & Co. Mr. Foster identified various checks handled
In the Commercial Alcohol transaction, one of them being for $25,161, being exactly the amount of one of the three checks given to Mr. Whanger by
Mr. Bragg. In "Account 296," carried by Mr. Smith for Mr. Bragg, the
Interests of Mr. Brown, Mr. Kies, Mr. Chadbourne and Mr. Grimm were
carried in the names of "dummies." The operation covered the period
May 2 to July 24 1933, during which the price of Commercial Alcohol Company common jumped from $20 to $89 per share, after which in a few
days it slumped to $29.
Brown Admits Pool Account.
"Was the debacle of July 1933, led by alcohol, or, as they were generally known, 'repeal issues'?" Mr. Pecora asked.
"That is my recollection," replied Mr. Foster.
"I wonder why, when the Stock Exchange investigated this transaction,
no one informed them that 'Account 296' was a pool," said Mr. Pecora.
Mr. Foster said W. E. Hutton & Co. had no knowledge it was a pool.
.Although he admitted it looked like one, he was never in a position, until
he heard the testimony before the Committee yesterday and to-day, to
prove that it was in fact a pool, said Mr. Foster.




1325

Mr. Brown was again recalled at this point and smilingly admitted that
"296" was the pool account.
The last witness of the day was Frank Quinn, secretary to Benjamin E.
Smith.
Asked if the Stock Exchange had sent a questionnaire to Mr. Smith in
1933 and asked if he was involved in any pools or syndicates, Mr. Quinn
said such a questionnaire was received that he, Quinn, answered. He said
the answer to the question as to pools and syndicates was "no."
Mr. Quinn explained that Mr. Smith and himself did not consider that in
carrying "296" for Mr. Bragg that Mr. Smith was involved in the pool.

Reference to the fact that the Senate Committee's inquiry
into the alleged "alcohol pool" was brought under way on
Feb. 14 was made in these columns last week (page 1145).
In that item we ndted that Mr. Brown was the first witness
called; besides the testimony therein given, we also quote
from the "Times" advices Feb. 14 from Washington the following:
He [Mr. Brown] declared that in every instance the transactions were
undertaken "solely for the purpose of stabilizing the stock of the corporation." Asked to specify some of the "unstable" conditions requiring such
action, he'replied that he could not answer the question.
Mr. Pecora brought out the fact that brokers frequently took options on
securities and then encouraged customers to buy these securities.
Copies of option agreements with brokers entered into by Mr. Brown,
Richard Grimm, President; William S. Kies, director and Chairman of the
Executive Committee, and Philip Publicker, director of the corporation, involving thousands of shares of common stock were produced by the Committee counsel.
The first four agreements, all dated Feb. 15 1932, represented 31,000
shares, Frank E. Bliss, a member of the Exchange, being the optionee in
each instance.
Next were two agreements, both dated June 11 1932, involving 11,000
shares of common, the optionee being the New York brokerage house of
Prentice & Slepack.
A third agreement with this house, dated July 22 1932, involved 200
shares, while still another with Stephen M. Ames and dated Aug 9 1932,
was a 10,000-share transaction.
One for 65,000 Shares.
The largest of the transactions was a 65,000-share agreement entered into
with Ruloff E. Cutten of E. F. Hutton & Co. The last agreement offered
in evidence was negotiated with Thomas E. Bragg, in which 25,000 shares
were fixed as the limit of the transaction.
The shares were handled in blocks of 1,000 to 25,000 and the prices
fixed in the agreements ranged from a minimum of $7 and a maximum of
$11 in the February (1932) agreements to $22 to $30 in the September
(1932) agreements and down to $18 in May 1933.
Mr. Brown was excused temporarily to permit the examination of Mr.
Cutten, who said he handled the 65,000-share option at the request of Mr.
Brown and Mr. Grimm but not through E. F. Hutton & Co.
He added that the First Chrold Corporation, the Outten Company, Ltd.,
of Canada, Mrs. Augusta Edgerton, Mitchell Hutchins and Mrs. Adrienne
Ames, wife of Stephen Ames, participated in the transaction with him.

Incidentally we quote in part an item bearing on the inquiry, which appeared in the New York "Herald Tribune"
of Jan. 31:
Richard H. Grimm, President of the American Commercial Alcohol Company, was examined on Monday afternoon by Julius Silver, associate counsel to the Senate Subcommittee on Banking and Currency, at the New
York office of the Committee, 285 Madison Avenue, it was revealed yesterday. Questioning of Mr. Grimm was a part of the Committee's investigation into alleged pool trading in the so-called liquor stocks on the New York
Stock Exchange.
Asked concerning the appearance of Mr. Grimm, Mr. Silver said last
night that it was probable that officers of other alcohol companies, stocks
of which rose to high levels during the May, June and July boom, would be
called. He would give no indication of the findings of the Committee and
pointed out that the examination of the officers formed only a part of the
inquiry into the market operations.
American Commercial Alcohol Company stock was a leader in the advance. From a low of 13 on February 27 quotations were carried to a high
of 89% on July 18. Yesterday's close was at 60%.
Other of the alcohol issues, which are under investigation, include Commercial Solvents, with a low of 9 and a high of 57%; Standadr Brands,
with a low of 13% and a high of 37%; Schenley, with a low of 24%
and a high of 4514; U. S. Tndustrial Alcohol, with a low of 13% and a
high of 94, and National Distilleries, with a low of 20% and a high of 33%.
Ferdinand Pecora, counsel for the Committee, who is conducting the
hearings in Washington, has received from the Stock Exchange a report on
pool activity of the period from May 15 to July 24. Data was collected by
the Exchange from more than 100 members, including the specialists in the
stocks. The report, it is said, attributes the rai)id advance to public buying.

Symposium on Inflation at Gathering of Wall Street
Brokers and Investment Dealers—Discussion Led
by Vice-President Langer of Trust Company of
North America.
At a gathering of Wall Street brokers and investment
dealers held at the New York Athletic Club on Feb. 8,
Felix G. Langer, Vice-President of Trust Company of North
America, led a symposium on inflation. The discussion was
planned to explore the meaning of inflation, why it has become a vital part of the Roosevelt program, the difficulties
and dangers that lie ahead, and what possible results can be
envisioned. In his introductory remarks, Mr. Langer
examined the viewpoints of various individuals and groups.
He stated that those who placed the emphasis on changing
monetary and credit mechanisms as the main problem are
apt to overlook many other far-reaching difficulties in our
social and political order, without the adjustment of which

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Financial Chronicle

monetary changes would be ineffectual. He admonished
against hastily conceived remedies which merely set into
operation injurious forces which compounded their evils
many times over.
In explaining the thought underlying the Roosevelt program, Mr. Langer pointed out that fundamentally we were
confronted with a maladjustment between debt and price
levels, inasmuch as a great portion of our existing debts were
contracted at a higher price level. It was found impractical
to bring the debt level down to the price level through writing
off or compromise of debts, and therefore the remedy that
was being attempted was to advance the price level to the
debt level. This involved a study of the elements that
affect prices in order to determine how prices could be raised.
Mr. TAnger's opinion is that four elements affect prices,
namely, the supply and demand of goods, and the supply
and demand of money. While in theory, manipulation of
these elements was simple and would affect prices, the only
one which might possibly work and which would not defeat
its own ends was to increase the supply of money. This,
it is contended, is now being attempted. Money includes
both currency and credit as well as the velocity of its turnover. However, an over-supply of uncontrolled currency
inflation may lead to a flight from the dollar which in turn
results in disaster. As bearing on the discussion it is further
noted:
If expanding the volume of money is to bring about a general price rise,
such a program must provide for a building up of the power to spend on
the other hand, coupled with provisions which would inspire confidence in
the future and thereby bring about a willingness and desire to spend. What
difficulities and dangers were encouraged in price control, problems which
cause inflation to become uncontrolled, and what happens when this
threatens, were dealt with in succeeding order.
Presenting his own opinion, Mr. Langer concluded that he was in favor
of attempting to establish a monetary standard which would obviate the
defects of our existing standard. Attempts to do this quickly, however,
were dangerous, and affirmative results could be brought about principally by a method of trial and error. The fallacy in much of the existing
thought on the subject lay in regarding the problem as one which was
susceptible to statistical compilation and interpretation, whereas, in fact,
the problem contains many factors which lie quite beyond the range of such
scrutiny. It is important that the community support the Administration,
for wholehearted, country-wide support can make an unsound system
workable, and contrariwise, lack of support can make a sound monetary
system unworkable. This is the first time in the history of depressions
that a popular leader confronted by the problems of a major depression
can make masterful use of such a powerful and persuasive force as the
radio.
A vote on the question, "Do you favor inflation?" elicited 21 yesses,
10 noes,6 "partly" and 3 "uncertain." Another on the question,"Do you
favor the gold bill?" resulted in 24 yesses, 7 noes, 2 "partly" and 7 "uncertain."

Trust Men Opposed to Proposal That They Buy Common Stocks as Hedge for ;Trust Accounts Against
Effects of Feared Inflation—Alfred Fairbank of
Boatmen's National Bank of St. Louis at Trust
Conference Bases Conclusions on Results of
Questionnaire.
Trust officers are being urged to buy common stocks as
a hedge against the effects of feared inflation in depreciating
the values or purchasing power of bonds which normally
make up the bulk of the trust accounts in their care, but the
opinion of trust men generally is against such a policy,
Alfred Fairbank, Vice-President and Trust Officer of the
Boatmen's National Bank, St. Louis, Mo., declared in an
address on Feb. 13 before the 15th Mid-winter Trust Conference of the Trust Division, American Bankers Association, at the Waldorf-Astoria Hotel in New York City. Mr.
Fairbank, who spoke ;on "What Is the Duty of Trustees in
Investing Trust Funds in the Present Monetary Situation?"
said in part:
As a so-called hedge against feared inflation, we are urged to-day to buy
common stocks. The idea is that business will be greatly stimulated by a
program of inflation, that company earnings will increase, that market
prices of stocks will rise in consequence. Since inflation will reduce the
purchasing power of the dollar, it is urged that the purchase of common
stocks will offset this tendency and will prevent the wiping out either partially or entirely of the corpus of the trust. This brings the question clearly
to our attention. In 1929 the urge was to increase the corpus and the
income of the estate through such purchases, whereas in 1934 the urge is
made to preserve the corpus and increase the earnings and thus preserve
purchasing power.
Trust officials as a group must not and cannot join the common herd.
They must not be stampeded. They should not be easily tossed as a cork
on the uncertain waves of a threatened storm.
If the experiences of France and Germany are to be adjudged at all relevant in our own situation, then we can generalize that hedging against
inflation on the stock market will require the intelligence of genius, the
agility of an acrobat, and the courage of a centurion. together with a liberal
admixture of pure luck and the help of Divine guidance.
The Government has announced a tremendous deficit. The National
Recovery Administration has announced many plans which will affect the
earnings of industry. Undoubtedly the Government in wrestling with this
huge deficit will increase present existing taxes on corporations, and will
think up new and burdensome taxes for corporations to bear in order to
overcome this deficit. The prospect for increased earnings on the part of
corporations is therefore uncertain.




Feb. 24 1934

A trustee may approach the switch from fixed income bonds to stocks
seeking a hedge against actual inflation with the greatest care and study,
only to find after he has selected his stocks that he has picked the wrong
ones, or that they do not show sufficient enhancement to warrant the risk
which he has taken. Woe be to him if he has made so serious a mistake
as to lose his principal in the stock purchase after switching from his highgrade bond. No corporation, despite its past record of performance, has
as yet any history under the "New Deal" that gives trustees any assurance
that they can maintain for any reasonable time the dividends that they are
now paying, or that under inflation they can increase those dividends in
proportion to the reduction of the purchasing power of the dollar,
Some of our trustees are trying to safeguard principal against extreme
inflation during the next few months by purchasing short-time Government
obligations. In this way they are trying to keep an account in a position
to take advantage of any opportunity presenting itself in the near future
to purchase longer-term high-grade bonds. It is interesting to note that
before our present monetary problems arose and while we continued on
the gold standard, the purchasing power of money fluctuated considerably,
yet I do not recall any agitation during these years, or any criticism of trustees because they did not attempt to chase these fluctuations. There is
no question but that the matter is pressing at this time, but the difficulty
of predicting the ultimate outcome of the present uncertainties should
caution us against exaggerating the importance of this point of view.
It is well to stop and consider the legal decisions. It is the first duty
of trustees to preserve the corpus of the trust. The law, as thus far developed, lays a heavy hand of obligation on the trustee to adhere to this
principle. The courts have not yet said that it is the duty of the trustee
to so maneuver the corpus of the trust that it will keep pace with the
changing purchasing power of the dollar. To assume this as a cardinal
principle is in my judgment an invitation to speculate with trust finds.
Is there in the present situation a sufficient basis in law for trustees
to abandon policies developed over a period of more than fifty years?
Would the courts approve out actions if we were fortunate in our common
stock purchases, and would they absolve us from responsibility If it should
unfortunately develop that we guessed wrong? It occurred to me that it
would be desirable to get the viewpoint of some of our leading trust men of
the United States.

The results of his questionnaire, Mr. Fairbank said, led
him to the following conclusions:
(1) That the weight of the evidence indicates that the frequent changes
of purchasing power of the dollar have at times favored tho beneficiaries
of trust funds and at other times worked against them; that none of these
periods has called for a radical departure in trust investment policy.
(2) That the present situation has not yet reached the place where corporate fiduciaries have any sound basis for throwing overboard the policies
which have given stability and anchorage in the past.
(3) That it is the opinion of trust men generally that the purchase of
common stocks is not an adequate protection against inflation if it comes.
(4) That the decisions of our courts generally pronounce that it is the
duty of the trustee to conserve principal in dollars.
(5) That any determination to preserve the purchasing power of the dollar Is a decision to embark upon an uncharted sea and run the risk of selfdestruction.

Short Selling Regarded By Evans Clark of Twentieth
Century Fund as Having Little Effect on Market
Conditions.
Short selling does not have any material effect on stabilizing general price movements in the stock market, being
limited in its influence to specific issues rather than the
market as a whole, according to a section of a report of an
investigation of the securities market issued Feb. 20 by
Evans Clark, director of the Twentieth Century Fund.
It is stated that whatever influence short selling does have
on general price movements is to accelerate the downward
trend of prices during the early and middle phases of a decline
and either to check the price trend in the lower phase or
accelerate the recovery after prices have turned upward.
Short selling does not according to the Fund's figures,
have any appreciable effect on limiting the extremes to
which prices may rise. The Fund, endowed by Edward A.
Filene, has had a group of 30 investigators and research
workers under the direction of Alfred L. Bernheim finding
material for the report and a set of recommendations forwarded February 8 by Mr. Filene to President Roosevelt.
In its "Conclusions as to Effect of Short Selling" the report
says:
Judged by the experience of recent years short selling has not been In
sufficient volume to warrant the belief that its actual effect on general
price movements is at all material. During the past four years the short
interest probably did not at any time exceed 15% of the positions or sales
for long speculative account for all stocks. For most of this period the
proportion ranged between 5 and 10%. Insofar as trading of itself is a
market factor, therefore, much greater importance is to be attached to
the positions and trading on the long side of the market.
While the total volume of short sales is comparatively small, however,
it rose to relatively large amounts in particular issues. The exact size
of these individual short positions relative to the total speculative Interest
in each stock, Is not known, however, due to the fact that the long speculative interest for individual stocks is not known. It Is with reference to
Particular issues and particular points in time that close supervision over
short selling is needed.

In the recommendations of February 8 the research staff
urged that restriction should be placed upon the size of
short operations in individual issues, that the margin requirements against short contracts should be 10 points
or 40%, whichever is the greater, and that exchanges
should be required to publish weekly statistics on the short
position of each listed stock.
In arriving at these recommendations the report asks and
tries to answer three questions:

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Financial Chronicle

1. What is the cumulative influence, if any, of short selling upon the
trend of stock prices?
2. What is the cumulative influence, if any, of short selling upon intermediate "swings" in stock prices?
3. What is the separate influence, if any, of short selling upon individual
issues during particular periods of time?

To these questions the report submits the substance of
the following answers:
1. Short selling does not have any appreciable effect in limiting the
extremes to which prices may rise. It tends to accelerate the downward
trend of prices during the early or middle phases of the movement. From
statistics of the 1929 bull market, the inference is drawn that rather than
exerting any check on the downward swing, the effect of the short interest
after the fall of 1929 was to exaggerate the trend. The market value of the
short interest Nov. 12 1929 was 89.6 million dollars. By June 1931 this
amount had increased to 212.7 million dollars. The report reads:
"Its tendency is to accelerate the downward trend of prices during the
early and middle phases of the movement and to either check the price
trend in the lower phase or accelerate the recovery after prices have turned
upward."
2. Limited statistics make it nearly impossible to answer the second
question adequately. Weekly figures on the total short interest in the
New York Stock Exchange have been published only since May 1931.
Even with complete data over a considerable period of time the question
would be difficult to answer because of the other important factors. Only
the tendency of trading for short accounts may be questioned, the report
points out.
3. In answering the question as to the effect of short selling upon individual issues, the report bases its findings upon a statistical study of the
action of 14 representative stocks during the period from May 1931 to
October 1933. The relationship between the size of the short Interest and
the price fluctuation was separately analyzed and charted between May 23
1931 and Sept. 1 1933.

It is upon this study that the recommendation of restrictions on short operations in individual issues is based.
The announcement hearing on the report also says:
Attention is called to the limited number of regulations in force bearing
upon short selling. The New York Stock Exchange has only three. In
reviewing these the authors point out that the first and most important,
Article 17, Section 4 of the Constitution, bears equally upon long positions
and is intended to prevent artificial methods of trade generally. In addition
to this there is the memorandum sent out by the Business Conduct Committee Oct. 8 1931 requiring brokers to state whether selling orders are for
long or short accounts, and a circular letter dated Feb. 18 1932 providing
that"members shall not on and after April 1 1932 lend, either to themselves
as brokers or to others, securities held on margin for customers, unless they
shall have obtained separate authorization in writing permitting the lending
of such securities."

"Within the limits of these three rules," the report says,
"customers and members are free to sell short any or all
listed stocks provided they can be borrowed."
Opening of Trading on New York Stock Exchange Delayed One Hour Feb. 20 by Heavy Snow Storm—
Only Few Brokers Present at 10 O'Clock—Other
Exchanges Also Start Later Than Usual.
The heavy snow storm on Feb. 20, which served to tie-up
the New York area through the disruption of all forms of
transportation, delayed the opening of trading on the New
York Stock Exchange that day one hour, or until 11 o'clock,
due to the small number of brokers able to reach the Exchange at 10 o'clock. Other exchanges in New York City
also were late in starting. Officials of both the New York
Curb Exchange and New York Produce Exchange also delayed the opening of their respective markets until 11 o'clock.
Dealings in the over-the-counter market only began at 11.
Trading on the New York Cotton Exchange began at 10.45,
and on the Commodity Exchange, Inc., 10.30. The New
York Coffee & Sugar Exchange opened on time but with only
a few brokers on the floor. Announcement of the intention
of the Stock Exchange to delay trading to 11 o'clock was
went over the ticker as follows by Ashbel Green, Secretary
of the Exchange:
The Exchange will not open to-day until 11.00 a.m. due to heavy snowstorm in New York area.

Trading on the Stock Exchange Feb. 20 was almost half
of that of Feb. 19; the total at the close of business Feb. 20
being 1,219,630 shares as compared with 2,346,415 the
previous day.
E. Burd Grubb Elected President of New York Curb
Exchange—Succeeds H. C. Sykes Who Declined
Re-election—F. C. Moffatt Chosen Vice-President.
E. Hurd Grubb was unanimously elected President of the
New York Curb Exchange at a meeting of the board of
governors held Feb. 14. He succeeds Howard C. Sykes,
who was President for two years and declined re-election.
Fred C. Moffatt was elected Vice-President succeeding
Edwin Posner. Mortimer Landsberg was re-elected Treasurer and E. J. Muller was re-elected Assistant Treasurer.
Eugene R. Tappen was re-appointed Secretary, Charles E.
McGowan, First Assistant Secretary and James S. Kenny,
Martin J. Keena and James R. Murphy were re-appointed
Assistant Secretaries. As to the re-election of the Treasurer
and Secretary, the Exchange announced:




1327

Mortimer Landsberg, who was re-elected Treasurer, has held that office
since 1925. He joined the Exchange in December 1917 and has been:,a
member of the board of governors since February 1923.
Eugene R. Tappen is serving his seventh term as Secretary. He has
contributed valuable assistance in guiding the destinies of the Curb Exchange, having become a member in 1912 and serving on the board of
governors from 1917 to 1923.

A brief summary of the career of the new President follows:
Mr. Grubb, who will be 41 years old on March 20, was educated at St.
Paul's School at Concord, N. H. (1905-1911). Entering business he/became, in 1915, Assistant Sales Manager of the Philadelphia office of the
II. S. Cast Iron Pipe & Foundry Co., leaving there to represent in the old
Curb Market on Broad Street, Chandler & Co. of Philadelphia.
Following the World War in which he served, Mr. Grubb joined the
stock brokerage firm of MacQuoid & Coady, becoming the floor member on
the Curb Exchange in 1923. In 1925 he was elected to the board of Governors of the Curb Exchange, and has since served as Chairman of the
committee on quotations. Vice-Chairman of the committee on member
ship and on the clearing house, arbitration, Law, arrangements and general
committees.

Letter of Secretary Wallace to President Roosevelt
Transmitting Tentative Drafts of Legislation to
Regulate Commodity Exchanges.
While reference was made in our issue of Feb. 17 (page
1150) to the bills for Federal Supkvision of Commodity and
Cotton exchanges, a letter from Secretary Wallace to President Roosevelt stressing the need for such regulatory legislation, and its enactment in the near future, was made public on Feb. 17 by Representative Jones, according to advices
on that date from Washington to the New York "Times"
from which we also quote:
The Secretary's letter transmitted to the President the commodity exchange legislation, comprising a bill for cotton exchanges which earlier in
the week had been given out by Senator Fletcher of the Banking Committee
in summary form, and another covering wheat, corn, oats, barley, rye,
flaxseed, grain sorghums and mill feed.
Secretary Wallace, stating in his letter that experience and study by his
department over many years indicated the importance to agriculture of
Federal regulation of commodity Exchanges, added:
"Enactment of the legislation herein recommended will extend Federal
regulation over commodities dealt in for future delivery covering approximately 95% of the volume of trading in all such commodities, based on
value."
Senator Smith announced that he would call representatives of the grain
exchanges to Washington next week to discuss commodity exchange regulation. He said the meetings would be similar to those held this week with
representatives of the cotton trade, including the New York Cotton Exchange.
Administration officials are of the opinion that the present session is the
best time to press for enactment of the measure. The House Agricultural
Committee concluded its hearings to-day and Chairman Jones said it would
begin studying the bill Monday and would make every effort to bring out a
report as soon as possible.
As to the prospective commodity exchange regulations, Senator Smith
could fix no date for introduction oflegislation. His meetings with exchange
representatives, he said, would be in the nature of informal discussions if
held before introduction of legislation but would be public hearings if they
came afterward.
In transmitting tentative drafts of legislation for commodity exchange
regulation to the President, Secretary Wallace said:
"Legislation to regulate the commodity exchanges should be designed to
accomplish two general purposes:
1—"Prevent manipulation of prices and provide definite and positive
means for limiting speculation and short selling in agricultural commodities,
without interfering with legitimate marketing operations. The useful function of speculation as a hedging and risk-bearing facility can be preserved
best by removing as far as possible the opportunity for market demoralization through excessively speculation on the part of individuals or through
large pool operations.
2—"Prevent, under severe penalty, sharp practices and certain types of
transactions which lend themselves to cheating or which are in themselves
potent aids to manipulation. Wash sales, cross trading, and bucketing by
brokers handling customers' orders have no place in any public market and
should be barred under any code offair dealing.
"These should be outlawed on the commodity exchanges for the same
season that they should be eliminated from the stock exchanges.
"A decade of experience in administering the present Grain Futures Act
and the Cotton Futures Act has demonstrated that constant vigilance and
stronger control by the Federal Government are necessary to maintain free
and open markets for producers and to eliminate certain abuses inherent
in the speculation system."
Mr. Wallace declared the proposed legislation was drafted with no
thought of interfering with the normal functions of the commodity exchanges
Its purpose, he explained, was to preserve, improve an protect the markets
against practices and evils which the exchanges themselves appeared unable to prevent without assistance.
In also submitting a separate bill to revise the Cotton Futures Act, he
said that it was in response to a considerable Congressional sentiment in
favor of separate treatment for cotton.

Senator Smith Advocates Postponement of Government Supervision of Commodity Exchanges.
Incident to the proposed Federal supervision of commodity
markets indication of opposition to any "radical" changes
came from Chairman Smith of the Senate Agriculture Committee on Feb. 17, according to Associated Press accounts
from Washington, which said:
Senator Smith said that there might besome "obstructions" in commodity
markets which were interfering with the normal operation of the law of supply and demand, but asserted that there was a 'radical' difference" between
regulating stock and bond markets and regulating commodity exchanges.
He advocated postponement of strict Government supervision of commodity exchanges until they had a chance to work out their own system
of self-control and until crop surpluses had been reduced.
Saying that there would be a meeting of Exchange officials here soon,
he expressed the hope that a "conclusion can be reached and an agreement

Financial Chronicle

1328

perfected by which reforms indicated can be put into force with a minimum of legislation."

Continued Gain in Volume of Outstanding Bankers'
Acceptances—Total January 31, $771,326,418—
Increase of $7,215,850 in Month.
Continuing the gain which has been noted for the past
five months, bankers acceptances at the end of January
amounted in volume to $7,215,850 more than at the end of
December, bringing the total volume up to $771,326,418
which is $85,000,000 above the low figure of June 30 last and
$63,922,118 above the mid-winter total of January 1933.
In making public these figures on Feb. 20, Robert H.
Bean, Executive Secretary of the American Acceptance
Council added:
Since August 1933 new credits have more than replaced the amount of
maturing bills. During January export credit acceptances increased $18,100,135 contining recent gains and bringing the total of new export acceptance financing to $65,000,000 above August 31 figures.
Other slight gains during January were in warehouse credits which increased $433.118 and dollar exchange bills which increased $1,210.963.
Acceptances for the purpose of financing imports went off $4,974,475.
The use of acceptance credits to finance imports into the United States has
suffered seriously in recent months and has been declining steadily since
Sept. 30 when there were $103,000,000 In import acceptances outstanding.
Acceptances based on goods stored in or shipped between foreign countries
went off $,799.173 in January and domestic shipment acceptances went off
$754,718.
Allowing for the reduction in acceptances based on the storage or shipment of goods abroad, the actual gain in the domestic use of bankers
acceptances amounted to about $14,000,000 for the month.
The current survey of the American Acceptance Council reflects the
growing flux of banking funds in this market.
Reporting accepting banks held of their own bills, which could be converted into cash, a total of $254,949,946, an increase of $35,767,799 during
the month; also of other banks bills purchased, these accepting banks reported 3311,716,444, a gain for the month of $88,441,850. a total increase
In the bill holdings of accepting banks amounting to $124,209.649. The
total holdings of all accepting banks amounted to $566,666,390 or 73%
of all bills.

Detailed statistics are furnished as follows by Mr. Bean:
TOTAL OF BANKERS' DOLLAR ACCEPTANCES OUTSTANDING FOR
ENTIRE COUNTRY BY FEDERAL RESERVE DISTRICTS.
Jan. 31 1934.

Dec. 30 1933.

Jan. 31 1933.

$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

$46,913,275
611,924,545
15,496,418
2,158,390
973,004
8,834,996
40,949,115
2,262,614
3,914,107
1,300,000
3,626,114
25,757,990

$42,997,628
569,945,290
11,081,490
9,568,617
2,120,331
7,651,361
35,903,203
1,702,353
2,213,491
700,000
1,311,426
22,209,110

$771,326,418
$764,110,568
Grand total
Increase for month, $7,215,850. Increase for year $63,922,118.

$707,404,300

Federal Reserve District.
1
2
3
4

5

8
7
8

9
10
11

12

CLASSIFIED ACCORDING TO NATURE OF CREDIT.

Imports
Exports
Domestic shipments
Domestic warehouse credits
Dollar exchange
Based on goods stored in or shipped
harsoc.on tnrchicrn entintriast

Jan. 31 1934.

Dec. 30 1933,

Jan. 31 1933.

$89,294,031
225,327,115
13,078,427
263,440.095
5,178,815

$94,268,506
207,226,980
13,833,145
263,006,977
3,967,852

$70,992,674
166,022,517
13,269,141
209,161,451
11,275,979

175 007 935

181.807A08

2311.682.538

CURRENT MARKET QUOTATIONS ON PRIME BANKERS ACCEPTANCES
JAN. 19 1934.

Days—
30
60
90

Dealers'
Dealers'
Buying Rate. Selling Rate.
%

Si

9i

5i

Si

%

Days—
120
150
180

Dealers'
Dealers'
Buying Rate. Selling Rate.
4

1

1

5i
'4

7,‘

Increase of $1,413,273 Reported in Surplus, Reserves
and Undivided Profits of 12 Federal Intermediate
Credit Banks—Aggregated $3,579,367 Net on Dec.
31 1933 as Compared with $2,166,094 at Close of
1932.
Consolidated surplus, undivided profits and reserves for
contingencies of the 12 Federal Intermediate Credit banks
on Dec. 31 1933 aggregated $3,579,367 net, according to
the year-end report of the banks made public through
Charles R. Dunn, fiscal agent in New York City. This
figure compares with $2,166,094 at the end of 1932. The
increase in surplus, reserves and undivided profits during
1933 was $1,413,273. In making public the report Mr. Dunn
further announced:
Aggregate credit extended through loans and discounts by the banks
since their establishment in 1923 through Dec. 31 1933 totaled $1,914,734,712 of which there were outstanding loans and discounts of $149,462,951
as of the end of 1933. Total net charge-offs during this entire 10-year
Period amounted to approximately 0.37 of 1% of the aggregate amount
of credit extended.
Net charge-offs during 1933 amounted to only $304,455.
Since the date of their establishment the banks have issued debentures
up to Dec. 31 1933 in the aggregate principal amount of $1,398,980,000.
Of this sum there were outstanding on Dec. 31 $128,185,000 principal
amount of debentures
Total assets of the 12 banks stood at $195.648,812 on Dec. 31. Loans
and discounts were $149,462,951. Cash and United States Government




Feb. 24 1934

securities held were $41,726,248 on Dec. 31 1933, compared with $15.323,696 on Dec. 31 1932.
The function of the banks is to provide agricultural credit for periods
that are "intermediate" between the maturities usually available through
short-term commercial bank loans and long-term farm mortgages. The
banks are authorized to discount agricultural and livestock paper for
Production Credit Associations organized under or in accordance with
the requirements of the Farm Credit Act of 1933, and for National and
State banks, Agricultural Credit corporations, incorporated livestock
loan companies and other financial institutions, with their endorsemente
They may also make loans or advances to such organizations secured
by such paper and to co operative marketing and purchasing associations

secured by staple agricultural commodities, livestock, or such other collcteral as may be approved by the Governor of the Farm Credit Administration.

Bond Adjustment Plan for Orderly Liquidation of
Lafayette Joint Stock Land Bank of Lafayette, Ind.
—Bondholders Invited to Sell One-Half of Their
Bonds to Bank.
The Lafayette Joint Stock Land Bank, Lafayette, Ind.,
is notifying bondholders of a bond adjustment plan, the
purpose of which is to preserve capital assets and to aid the
bank towards an orderly liquidation, it was announced
Feb. 19. Under the plan bondholders are invited to tender
for sale to the bank at least one-half of their bonds at a price
of 67 for the 5% bonds and 66 for the 4% bonds, with
interest in each case to the date of sale. Madison & Co.,
Inc., through its Chicago office, has been authorized to
receive tenders of such bonds and furnish forms therefor,
the announcement said.
Minimum Non-Member Commission Rate on Bonds of
HOLC and Federal Land Bank Farm Loan Bonds
Lowered by New York Real Estate Securities
Exchange.
The New York Real Estate Securities Exchange, Inc.,
announced on Feb.21 that by order of its Board of Governors
the minimum non-member commission rate on bonds of the
Home Owners' Loan Corporation and on Federal Land Bank
Farm Loan bonds shall be $1.25, instead of $2.50, per
$1,000 par value, effective immediately.
Allotments on Offering of $800,000,000 (or Thereabouts)
Treasury Note Issues Total $847,022,400—Total
Subscriptions of $3,618,164,400 Received—$418,291,700 Allotted for 23'% Notes of Series D-1935,
Maturing Dec. 15 1935, and $428,730,700 for 3%
Notes of Series C-1937, Maturing Feb. 16 1937.
The Treasury Department's Feb. 19 combined offering of
two issues of Treasury notes to the total amount of 00,000,,000 or thereabouts,for which subscription books were closed
on Feb.13,the first day they were open, brought subscriptions
of $3,618,164,400, according to final subscription and allotment figures announced on Feb. 20 by Henry Morgenthau,
Jr., Secretary of the Treasury. The allocations, according
to the figures, amount to $847,022,400.
The offering, which was announced on Feb. 12 by Secretary Morgenthau, and which was referred to in our columns
of Feb. 17, page 1152, consisted of 00,000,000 or thereabouts of 23. % Treasury notes of Series D-1935, maturing
Dec. 15 1935, and $400,000,000 or thereabouts of 3% notes
of Series C-1937, maturing Feb. 15 1937. Both series bear
interest from Feb. 19 1934, payable on a semi-annual basis.
Subscriptions in the case of the 23/
3% notes totaled $1,332,409,900, of which $418,291,700 were allotted. Subscriptions to the 3% note offering amounted to $2,285,754,500
and allotments were $428,730,700. Subscriptions and allotments were divided among the several Federal Reserve districts and the Treasury as follows:
% Treasury Notes
Series D-1935.
Total
Subscriptions
Received.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
Total

Total
Subscriptions
Allotted.

3% Treasury Notes
Series C-1937.
Total
Subscriptions
Recetred.

Total
Subsc7iptions
Allotted.

$86,649,000
557,316,400
79,572,400
69,980,500
53,479,000
69,702,200
215,631,200
38,432,700
23,674,500
34,777,500
46,999.500
55,695,000
500,000

$28,023,000 $144,330,400
169,037,900 1,190,611,100
137,194,000
24,540,900
109,012,600
21,789,000
60,481,000
16,810,000
80,563,100
21,346,000
241,627,400
69,275,200
12,931,700
54,876,700
41,638,500
9,022,500
12,677,000
47,451,200
15,404,500
64,661,200
17,284,000
113,098,000
150,000
215,300

$29,270,300
207,231,300
25,431,500
21,480,300
12,442,200
16,204,300
48,062,300
12,104,500
10,197,600
11,496,600
14,386,800
20,374,300
48,700

$1,332,409,900

$418,291,700 $2,285,754,500

$428,730,700

$75,155,000 in Tenders Accepted to Offering of $75,000,000 or Thereabouts of 91-Day Treasury Bills Dated
Feb. 21 1934—Tenders of $307,110,000 Received—
Average Rate 0.57%.
Tenders to the offering of $75,000,000 or thereabouts of
91-day Treasury bills dated Feb. 21 and maturing May 23

Volume 138

1934 amounted to $307,110,000, Henry Morgenthau, Jr.,
Secretary of the Treasury, announced on Feb. 19. Of this
amount, the Secretary said, $75,155,000 were accepted.
The tenders to the offering, which were invited on Feb. 15
by Secretary Morgenthau, were received at the Federal
Reserve banks and the branches thereof up to 2 p.m. Eastern Standard Time Feb. 19. Secretary Morgenthau's announcement of Feb. 15 was given in our issue of Feb. 17,
page 152.
The average price of the bills to be issued is 99.855 and
the average rate is about 0.57% per annum on a bank discount basis. The last previous offering of 91-day bills
(dated Feb. 14) sold at an average rate of about 0.66%.
In the case of the bills dated Feb. 21, the accepted bids,
except for one bid of $200,000 at 99.928, ranged in price
from 99.864, equivalent to a rate of about 0:54% per annum,
to 99.849, equivalent to a rate of about 0.60% per annum
on a bank discount basis. Only part of the amount bid
for at thelatter price was accepted.
Analysis of Government Debt by First of Boston
Corp. Shows Average Interest Rate of 3.21%.—
Of $24.3 Billions of Debt, $5 Billions Matures
Within One Year and $11 Billions from 1 to 5
Years.
The United States public debt totaling over $24,300,000,000
as of Jan. 31 is costing the Government an average rate of
about 3.21%, according to information compiled from a
booklet describing United States obligations published by
the First of Boston Corp. It is also indicated that approximately $5,000,000,000 of this debt falls due within one year;
$11,000,000,000 from one to five years, in which bracket is
included a total of $2,000,000,000 first 3%s, 4s and 41/
4s now
callable; and $8,300,000,000 in 1941 or thereafter, i.e., Treasury bonds and including low coupon pre-war issues. A detailed analysis by groups indicates that the average weighted
interest rate is greatest in that portion of the debt maturing
in the one- to five-year bracket:
Approx. And.
Maturity Groups.
(In Billion 5)
Due within one year (inc. called Fourth 4)4s)
5
11
Due from one to five years
9.1
Notes and Fourth 430
1.9
First 3Si5, 4s and 4445
8.3
Long-term and pre-war
7.5
Treasury bonds
.8
Pre-war bonds
24.3

Average Cost
to U. S.
1.98%
3.54%
3.51%
3.71%
b3le%
03.65%
2.14%
3.21%

a 3.47% after Oct. 15 1933 to adjust for 354% rate on Treasury 434-34s, 1945-43.
After Oct. 15 1933 to adjust for 354% rate on Treasury 434-3545, 1945-43.

It is added:
If the $1,006,000,000 called Fourth 4%s were not included in the oneyear bracket the average rate would decrease from 1.98% to 1.41%.
Excluding all Liberty Loan issues falling due or now subject to call amounting to $0,290,000,000 from the five-year group decreases the average of
the bracket from 3.54% to 2.83%. This compares with rates of 2%%
and 3% on the recently offered 22-month and three-year note issues.
All obligations of the Government are available in the market only at a
premium above the original issue price except two note issues now selling
fractionally below, Treasury 3%s of 1949 at 99 and Treasury 3s of 1955
selling at 99%.
The booklet contains detailed information and statistics valuable to
Investors in United States Government securities, such as tax features,
acceptability for taxes, denominations, Itc. It devotes a section to Federal
Farm Mortgage Corporation, and Home Owners' Loan Corporation obligations, and another to National Bank Note Circulation, and in addition supplies a number of graphic charts, one of which plots the total debt and
one-year debt from 1917 to date.

New Offering of $75,000,000 or Thereabouts of 182-Day
Treasury Bills—To Be Dated Feb. 28 1934.
A new offering of 182-day Treasury bills to the amount of
$75,000,000 or thereabouts was announced on Feb. 21 by
Henry Morgenthau, Jr., Secretary of the Treasury. Tenders will be received at the Federal Reserve banks or the
branches thereof up to 2 p.m. Eastern Standard Time Monday, Feb. 26. Tenders will not be received at the Treasury
Department, Washington. The bills will be dated Feb. 28
and will mature on Aug. 29 1934, and on the maturity date
the face amount will be payable without interest. They
will be sold on a discount basis to the highest bidders. An
issue of bills to the amount of $100,027,000 matures on
Feb. 28. In part, Secretary Morgenthau's announcement
of Feb. 21 said:
They will be issued in bearer form only and in amounts or denominations of $1,000, $10,000, $100,000. $500.000 and $1,000,000 (maturity
value).
No tender for an amount less than $1,000 will be considered. Each
tender must be in multiples of $1,000. The price offered must be expressed
on the basis of 100. with not more than three decimal places, e. g., 99.12E:
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a deposit
of 10% of the face amount of Treasury bills applied for, unless the tenders




1329

Financial Chronicle

are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on Feb. 26 1934,
all tenders received at the Federal Reserve banks or branches thereof up
to the closing hour will be opened and public announcement of the acceptable prices will follow as soon as possible thereafter, probably on the following morning. The Secretary of the Treasury expressly reserves the right
to reject any or all tenders or parts of tenders, and to allot less than the
amount applied for, and his action in any such respect shall be final. Those
submitting tenders will be advised of the acceptance or rejection thereof.
Payment at the price offered for Treasury bills allotted must be made at
the Federal Reserve banks in cash or other immediately available funds
on Feb. 28 1934, provided, however, any qualified depositary will be
permitted to make payment by credit for Treasury bills allotted to it for
itself and its customers up to any amount for which it shall be qualified in
excess of existing deposits when so notified by the Federal Reserve bank of
its district.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt,from all
taxation, except estate and inheritance taxes. No loss from the sale or
other disposition of the Treasury bills shall be allowed as a deduction, or
otherwise recognized, for the purposes of any tax now or hereafter imposed
by the United States or any of its possessions.

232,630 Ounces of Silver Purchased During Week
Ended Feb. 16—Total Purchases 823,282.69 Ounces.
Receipts of silver by the various United States mints
during the week of Feb. 16 totaled 232,630 ounces, Henry
Morgenthau Jr., Secretary of the Treasury, announced on
Feb. 19. Receipts during the week of Feb. 9, as noted in
our issue of Feb. 17, page 1152, totaled 375,995.83 ounces.
Total purchases by the Treasury since the issuance of the
President's proclamation of Dec. 21 1933, authorizing the
Department to buy at least 24,000,000 ounces annually,
and up to and including Feb. 16, amount,to 823,282.69
ounces. The Dec. 21 proclamation was given in our issue
of Dec. 23, page 4440. The total weekly purchases are as
follows:
Week Ended—
Jan. 5
Jan. 12
Jan. 19
Jan. 26

Week Ended—
Ounces.
1,157.00 Feb. 2
547.00 Feb. 9
477.00 Feb. 16
94,921.00
Total

Ounces.
117,554.86
375,995.83
232,630.00

823,282.69

House Passes Administration $258,000,000 Tax Revision
Bill by 390 to 7 Votes—Motion to Recommit Defeated by 271 to 133—No Important Changes in
Measure Now Before Senate—Republicans Fail in
Attempt to Insert Sales Tax Provision.
The Administration's tax bill, designed to raise $258,000,000 in new revenues, was placed before the Senate late this
week,following its passage by a vote of 390 to 7 in the House
of Representatives Feb. 21. Detailed provisions of the bill
were given in our issues of Feb. 10 (page 972) and Feb. 17
(pages 1153-54). As approved by the House the measure
was passed in virtually the same form in which it was introduced. It is expected that in the Senate, however, it will
receive protracted consideration and that it may be amended
in several important respects.
Before final passage in the House Feb. 21, a Republican
attempt to recommit the bill and to reduce first-class postal
rates to the former two-cent rate was defeated by a vote of
271 to 133. Previously ten perfecting amendments by the
Ways and Means Committee, providing for only minor technical changes, had been adopted. We quotefrom a Washington dispatch Feb. 21 to the New York "Times" regarding the
House vote on the tax measure:
Sixteen Democrats voted with a solid Republican minority on the motion
to recommit, which was offered by Representative Treadway of Massachusetts. Representatives Arens, Johnson, Lundeen and Kvale, FarmLaborites, also voted with the Republicans. It was the first time this session that either party has put up a solid front on a record vote.
All seven of the opposing votes on final passage were Republican. They
were cast by Representatives Britten, Dirksen, Eltse, Foss, Kahn, McFadden and Welch.
The Democrats who voted to recommit the bill on the Treadway motion
were: Representatives Condon, Connery, Crosser, Douglass, Dunn, Gillespie, Hildebrandt, Hoeppel, Mead, Monaghan, Morehead, Rankin, Secrest,
Sweeney, Gruax and 'Young.
Amendments Are Clarifying.
Considered the most drastic rule of the session, the bill was passed virtually in the same form it was introduced. Ten technical, or "clarifying"
amendments were offered by Chairman Doughton of the Ways and Means
Committee, who was in charge of the bill, but he explained to the House that
they did not in any way change the provisions of the measure.
The bill provides a normal 4% income tax rate with surtax adjustments to
benefit persona with earned incomes; grants a 10% reduction allowance on
earned incomes of $8,000 or less before tax is figured; makes changes in
measuring capital gains and losses estimated to bring in $35,000,000; imposes a penalty tax on personal holding companies; tightens up allowances
for partnership losses; cuts in half foreign tax credits and establishes an
additional 2% penalty tax on consolidated returns.
The gas-oil "nuisance" taxes for administrative purposes are shifted in
the bill to original manufacture; a 5 cents a pound excise tax is laid on cocoanut oil, and a small tax is put on crude petroleum producers as a means of
checking "hot oil" sales and financing the Oil Code Administration.
The measure also provides for repeal of the bank check tax as of Jan. 1
1935, and drops second-class postage rates to old levels on July 1.
Byrns Defends Postage Plan.
Representative Byrns, majority leader, was called upon at the last
minute to stave off a fight against the proposal to reduce the first-class

1330

Financial Chronicle

postal rates. He estimated that $75,000,000 would be lost by reduction
in the postal rates. ttepublicans had estimated the reduction at only $39,000,000and contended that the decrease in revenue would be more than
offset in the increased volume that would follow a return to the old two-cent
rate.
V‘I am glad that a Democratic House did the unpopular thing for the good
of the whole country and raised the rates under a Republican President,
when he was faced with an enormous budget," Mr. Byrne declared.
"Now a Democratic Postmaster General comes to us and says that it
will cost $75,000,000 to reduce the rates. He asked that we continue the
increased rate for another year. What are we to say to the country if we
Ignore his plea?
"Listen to the Postmaster General and don't be misled by those who
would reduce the rates."

In the House debate on the revenue bill Feb. 16, several
Republican leaders sought to insert a manufacturers' excise
tax into the measure, assering that the $258,000,000 provided
by the bill as approved by the Ways and Means Committee
would fall far short of balancing the budget. Representative
McGugin of Kansas said that the bill "is a frank and shameless admission that you don't expect to raise enough money
to balance the budget." As later passed by the House, how
ever, no sales tax provision was included in the bill. A
Washington dispatch Feb. 16 to the New York "Times"
quoted Mr. McGugin, as follows:
"Chambers of commerce and other economy agencies have stopped demanding a balanced budget and have gone over to the other side, demanding
more expenditures," he said.
"No democracy can survive when it permits its finances to become
rotten. Parliamentary governments are failing in all parts of the world
because they won't take the responsibility for meeting obligations."
"Running behind as we are," he continued, "we will pass our obligation
down to our children to pay: it will run the Government down to ruin from
which there will be no return. This bill is a milestone on the downward
path.
"Will the people come to demand a sales tax or will they drift on and on
down to Insolvency?"

Manufacturers of soap have indicated their intention to
fight the provision in the revenue bill which proposes an excise tax of 5cents per pound on the use of cocoanut oil brought
into the country, as well as cocoanut oil produced domestically. J. H. Blankney of the Colgate-Palmolive-Peet Co.
said last week that if this excise tax becomes law the price of
soap in this country would automatically rise 100%.

Feb. 24 1934

of the scheme will mean edifference of $63,000,000 to the administration
over its own proposal for a 10% restoration, it was announced.
Senators and House members would benefit greatly by the McCarran
amendment, their salaries being raised to $10,000 instead of the $8,500
they now receive under the pay cut.
Senator O'Mahoney, Democrat, persuaded the Senate to adopt without a roll-call an amendment allowing administrative promotions whereever possible within the limit of existing appropriations.

Treasury Purchases of Government Securities During
Week of Feb. 17 Totaled $7,089,000.
Henry Morgenthau Jr., Secretary of the Treasury, announced on Feb. 19 that the Treasury purchases of Government bonds during the week ended Feb. 17 aggregated
$7,089,000. The Secretary said that $5,800,000 of this
amount was for the account of the Federal Deposit Insurance Corporation and the remainder for other accounts.
Since the inception of the Treasury's support to the Government bond market several months ago,reference to which was
made in our issue of Nov. 25 1933, page 3769, the weekly
purchases have been as follows:
68,748.000 Jan. 13 1934
Nov. 25 1933
33,868,000
2,545,000 Jan. 20 1934
17,032,000
Dee. 2 1933
7,079,000 Jan. 27 1934
2,800.000
Dec. 9 1933
7,900,000
16,600,000 Feb. 5 1934
Dec. 16 1933
16,510,000 Feb. 13 1934
*22,528,000
Dec. 23 1933
11,950.000 Feb. 17 1934
7,089,000
Dec. 30 1933
344,713,000
Jan. 6 1934
•In addition to this amount, $638,400 ot bonds held by the Treasurer as collateral
security for postal sayings deposits purchased Feb.9 by the FDIC.

The New York "Sun" of last night (Feb. 23), in discussing
the subject of the Treasury purchases of its own securities,
had the following to say:
Aggregate Treasury purchases of its own securities, not only for sinking
fund requirements but also for "investment" of various Government
funds, went over the $200,000,000 figure with announcement that the
Treasury had acquired in the week ended Feb. 17, $7,089,000. On the
basis of sinking fund operations on which full data is contained in daily
Treasury statements, only slightly more than $50,000,000 has been the
extinction of debt through retirement as provided by law.
The remaining $150,000,000, it may be assumed, has gone principally
into the strong boxes of the FDIC, whose function in times of stress is to
rescue and liquidate banks and, in times of financial calm, to assure the
Treasury a resting place for substantial quantities of bonds.
In utilizing the funds of the FDIC, the Treasury has been merely using
its own subscriptions plus funds of the Federal Reserve banks and of the
member banks turned over to the FDIC early in January in payment for
its capital stock. It is especially interesting to note that in the period when
subscriptions to the FDIC were being made, Dec. 15 through Jan. 20. not
only was the Treasury investing at full speed, so to speak, but was using
sinking fund money, too. The effect of this was to give Government
securities the temporary advantage of double barreled buying operations.
The Treasury is mindful that windfalls such as the huge investment
fund of the FDIC do not come often. This is said to be the main reason
why the sinking fund has been utilitized to the extent of only about $50,000,000 of the $500,000.000 available annually for debt redemption.
By holding in reserve some $450,000,000 a serviceable umbrella is provided
for Government credit should it be threatened between now and the end
of the fiscal year. Some Government securities experts are wondering
whether, if much of that sum remains available in June, it might not come
In handy as a pool with which to celebrate July 4 in the bond market.

Senate Votes Restoration of 15% Federal Pay Cut by
July 1, Despite Administration Opposition—By
Vote of 41 to 40 Adopts Amendment to Independent
Offices Bill—House May Have Opportunity to
Vote on Proposal If Freed of "Gag Rule."
Despite the expressed opposition of President Roosevelt,
the Senate, by a vote of 41 to 40, approved an amendment
on Feb. 21 to the Independent Offices Appropiration Bill
which would restore to Federal employees the entire 15%
pay cut authorized by the Economy Act of 1933. Under
the amendment approved by the Senate, 5% of the reduction would be restored as of Feb. 1, and the remaining 10% Certificate
of Incorporation of Export-Import Bank of
on July 1. When the Independent Offices Bill passed the
Washington.
House last month no opportunity was given for a vote on
The certificate of incorporation of the Export-Import
the pay out, since the bill was approved under so-called Bank
of Washington, the formation of which was noted in
"gag rule" adopted by a vote of 197 to 192. If the House our
issue of Feb. 17, page 1159, was made public at Washaccepts the Senate amendment, which was sponsored by ington on Feb. 16. In a Washington account that day to
Senator McCarran of Nevada, the cost to the Government the New York "Times" it was pointed out that through the
would be $189,652,505, as compared with $126,000,000
certificate the Bank was revealed to have existence for 10
estimated under Administration plans to restore 5% of the years and to be organized "to aid in financing and to facilitate
cut on Feb. 1 and an additional 5% July 1, leaving effective exports
and imports and the exchange of commodities
the remaining 5% cut unless the President decides that between.the
United States and other nations or the agencies
prices have meanwhile been increased sufficiently to justify or nationals of other nations." The account further observed:
this restoration.
The certificate also provides for the uncommon practice of a government
A Washington dispatch of Feb. 21 to the New York agency paying dividends to another such agency of the government. Specifically, the new bank is to pay 5% cumulative dividends annually to
"Times" noted the Senate action as follows:
the RFC as the executive holder of its preferred stock.

The vote on the McCarran amendment was the second major defeat
suffered by President Roosevelt in the Senate this session—and at the
hands of the same Democrats. Only a short time ago the Senate adopted
the McCarran amendment to the $950,000,000 CWA Relief Appropriation Bill to force the Executive to appoint all CWA State relief administrators with Senatorial consent. This was abandoned when the House
stood fast against it.
Promotion Barrier Stands.
After adoption of the McCarran amendment to-day Senator Dickinson. a Republican leader, tried to force through a change to wipe from
theTbill barriers against administrative promotions, transfers, filling vacancies, Sm., as measures of economy. His amendment, which would
have cost the Government $40,000.000 to $50,000,000, was beaten by a
vote of 40 to 38.
Thirteen Democrats left President Roosevelt to side with 27 Republicans
and Mr. shipstead, Farmer-Labor, for the McCarran amendment.
On the face of it the Senate situation is very close, should there be a
vote on the conference report. Seven are paired for the amendment,
in contract to 40 votes against, and four others paired against, with four
unannounced. Even if the three unrevealed votes opposed Mr. McCarran
on another roll-call the result would be a tie-48 to 48.
$63,000,000 Extra Cost Involved.
IF Adoption or rejection of the McCarran plan was in doubt all through
the roll-call, which swung narrowly first one way then the other. Demo
matte leaders hastily summoned their forces, all in vain. Final approval




While admitting that the practice was unusual, officials explained that
the provision was necessary to make the Bank eligible to sell its preferred
stock to the RFC, under the National Banking Act. The corporation may
not subscribe to the preferred stock in any banking institution unless provision for dividend payments to it are provided, officials said.
To Have $11,000,000 Capital.
The Bank is to have an initial capital of $11,000,000 of which $10,000,000
is in preferred shares and held by the RFC. The remaining 31.000,000 of
common stock is purchased by President Roosevelt under authority conferred by the National Industrial Recovery Act, although he will not
actually hold it.
The certificate of incorporation of the Bank does not designate who is
to hold the common shares, but President Roosevelt, in an executive order
signed on Feb. 2 but not made public, directed that the stock was to be
voted by such persons as the Secretaries of State and Commerce shall
appoint for the purpose.
Directors' qualifying shares, numbering five for each director, are to
be held by Secretary Roper, Robert F. Kelly of the State Department,
Chester C. Davis, AAA administrator; Stanley Reed, general Counsel of
the RFC, and Lynn P. Talley, Executive Assistant to the directors' of the
RFC.
Since the date of the President's executive order and the filing of the
certificate of incorporation, the latter has been amended to increase the
number of directors of the bank to eight. The new institution is authorized
to conduct "a general banking business- except that of discount or circulation.

Financial Chronicle

Volume 138
Can Increase Capital.

Provision is made in the certificate for an unlimited increase in the
capitalization, there being no limitation upon the amount of preferred
stock which the RFC may purchase in a banking institution.

From the same paper we take as follows the text of the
incorporation certificate:
DISTRICT OF COLUMBIA.
Certificate of Incorporation of Export-Import Bank of Washington.
Know all men by these presents that we, the undersigned, desiring to
form a corporation pursuant to Title 5, Chapter 9, Section 261 of the Code
of the District of Columbia, enacted by Congress and approved by the
President of the United States, do hereby'certify:
First: That the name of the corporation shall be Export-Import Bank of
Washington, and the object and purpose for which it is formed is to aid in
financing and to facilitate exports and imports and the exchange of commodities between the United States and other nations or the agencies or
nationals thereof, and in connection with and in furtherance thereof:
To do a general banking business (except that of discount or circulation);
to receive deposits; to purchase, sell and negotiate, with or without its
endorsement or guarantee, notes, drafts, checks, bills of exchange, accept,ances, including bankers' acceptances, cable transfers and other evidences
of indebtedness; to purchase and sell securities, including obligations of the
United States or of any State thereof, but not including the purchase with
its funds of any stock in any other corporation; to accept bills or drafts
drawn upon it; to issue letters of credit; to purchase and sell coin, bullion
and exchange; to borrow and to lend money; and to do and to perform the
necessary functions permitted by law to be done or performed in conducting
said enterprise or business.
The foregoing objects and purposes shall, except when otherwise expressed, be in no way limited or restricted by 'reference to, or interference
from, the terms of any other clause of this or any other article of this certificate of incorporation or of any amendment thereto, and shall each be
regarded as independent, and construed as powers as well as objects and
purposes.
The corporation shall be authorized to exercise and enjoy all of the
powers, rights and privileges granted to, or conferred upon, corporations
of a similar character by the Code of the District of Columbia now or hereafter in force, and the enumeration of the foregoing power shall not be
deemed to exclude any powers, rights or privileges so granted or conferred.
Second: The term of its existence shall be 10 years from the date of its
incorporation.
Third: The amount of capital stock of the corporation shall be $11,000.000, divided into classes and shares as follows:
(a) $1,000,000 par value of common stock, divided into 10,000 shares
of the par value of $100 each; and
(b) $10,000.000 par value of preferred stock, divided into 10,000 shares
of the par value of $1,000 each.
The designations and the powers, preferences and rights and the qualifications, limitations or restrictions thereof are as follows:
The holders of the preferred stock shall be entitled to receive when and
as declared by the board of trustees from the surplus or net profits of the
corporation, dividends at the rate of 5% per annum, payable semi-annually
on dates to be fixed by the board of trustees. The dividends on the pre[erred stock shall be cumulative and shall be payable before any dividend
on the common stock shall be paid or set apart; so that, if in any year
dividends amounting to 5% shall not have been paid thereon, the deficiency
shall be payable before any dividend shall be paid upon or set apart for
the common stock. The preferred stock shall not be entitled to participate
in any further dividends beyond the 5% aforesaid.
Whenever all cumulative dividends on the preferred stock for all previous
years shall have been declared and shall have become payable, and the
accrued instalment for the current year shall have been declared and the
corporation shall have paid such cumulative dividends for previous years
and such accrued instalments or shall have set apart from its surplus or
net profits a sum sufficient for the payment thereof, and shall have made
such charge-offs, write-downs, and transfers to reserves requestined by the
Comptroller of the Currency, the board of trustees may declare dividends
on the common stock payable then and thereafter out of any remaining
surplus or net profits.
In the event of any liquidation or dissolution or winding up (either
voluntary or involuntary) of the corporation, the holders of the preferred
stock shall be entitled to be paid in full both the par value of their shares
and the unpaid dividends accrued thereon, before any amount shall be
paid to the holders of the common stock; and after the payment to the
holders of the preferred stock of its par value and the unpaid accrued
dividends thereon, the remaining assets and funds shall be divided and paid
to the holders of the common stock according to their respective shares.
With the approval of the Comptroller of the Currency the corporation
may redeem the whole or any part of the preferred stock at any time at
the option of the board of trustees at $1,000 per share plus any accumulated
and unpaid dividends plus an amount equivalent to a proportionate dividend from the last dividend date to the date of redemption. In the case of
the redemption of a part only of the preferred stock the shares so to be
redeemed shall be determined by lot. Ten days' (or more) previous notice
by mall, postage prepaid, shall be given to the holders of record of the
preferred stock to be redeemed, such notice to be addressed to each stockholder at his address as it appears upon the books ot the corporation. If
the aforesaid notice of redemption shall have been duly given, and if on or
before the redemption date named in such notice, the funds necessary for
such redemption shall have been set apart so as to be and continue to be
available therefor,then, notwithstanding that any certificate ofthe preferred
stock so called for redemption shall not have been surrendered for cancellation, dividends on the preferred stock so called for redemption shall
cease to accumulate from and after the date of redemption so designated,
and all rights with respect to such preferred stock shall forthwith upon
such redemption date cease and determine, except only the right of the
holder to receive the payment on account of such redemption as above
provided, but without interest.
Each share of preferred stock and each share of common stock issued
and outstanding shall entitle the holder of record thereof, at all meeetings
of the stockholders, to one vote for each share thereof standing in his name
on the books of the corporation.
Fourth. The concerns of the corporation for the first year shall be
managed by a board of five trustees, namely, Daniel C. Roper, Robert F.
Kelley, Chester 0. Davis, Stanley Reed, Lynn P. Talley.
The board of trustees may be increased from five to not more than eight
members with the approval of the President of the United States.
The board of trustees, by an affirmative vote of a majority of the entire
board, may appoint from the trustees an executive committee of three
members, a majority of whom shall constitute a quorum, and to such extent
as may be provided in the by-laws of the corporation shall have and may
exercise all or any of the powers of the board of trustees.




1331

Fifth. The operations of the corporation are to be carried on in the
District of Columbia, and the main office of the corporation shall be at
1.825 H Street N. W., Washington, District of Columbia.
This corporation reserves the right to amend,alter or change any provision contained in this certificate of incorporation in any manner prescribed by statute, and all rights conferred on stockholders herein are
granted subject to this reservation.

Need for Export-Import Bank Questioned by Chairman
Bauer of World Trade League—Tariff Reduction
Regarded as Basic Essential.
Need for an Export and Import Bank under the Reconstruction Finance Corporation to finance Russian and other
foreign commerce, is questioned by George F. Bauer,
Chairman of the World Trade League. "Any financing
that could be done by the Government bank can probably
be performed as well by existing private agencies, if the
excessive barriers to trade are removed," said Mr. Bauer
in a statement made available Feb. 19,in which he contends:
In international trade the goods of one nation have to be used, finally,
to pay for the products of another country.
If the commercial drafts arising from incoming goods are about equal to
those of the outgoing commerce,the first can be exchanged for the latter.
Therefore, once a flow of two-way trade is re-established through a
reciprocal lowering of tariffs, the exchange of the importers' and exporters'
drafts is a function that private banks are well equipped by experience to
perform. Consequently, no Government aid is required if this normal
international trade is permitted.
Without this prior liberation of world trade to allow for liquidation of
credits by goods payments, any accommodations extended to another
country are likely to become "open accounts," with the high risks surrounding them. It is quite possible, under such circumstances, to duplicate the
disastrous conditions that resulted when foreign bonds were floated and
means for payment ofloans by goods shipments were made difficult through
excessive tariff barriers.
Even with long-term financing, the basic condition remains that liquidation of the credit can be made, in the final analysis, only with "goods."
Private banks up to now, whenever ultimate liquidation has been assured,
have been able, through renewal of bankers' acceptances of six months'
duration each, to extend reasonably long term credits. In the smaller
percentage of cases where still longer credits may be desired, resort should
be made to bond flotations.
Here, too, the transactions are satisfactory only when final transfer of
funds through sale of goods in the creditor country is permitted.
Assuming that the Export and Import Bank is now an accomplished fact.
even though its need may be open to question, the problem arises how to
control its operations so as to avoid ultimate losses to the taxpayers.
. The centralization under a Govermment agency of this kind is also likely
to lead to discrimination and arbitrary decisions witn regard to the kind of
enterprises that are to be helped with the taxpayers' money while others
may be disregarded altogether.
While some exporters may say these credit facilities will mean more
sales of automobiles and other products in Russia, it is nevertheless important to prevent creation of additional "frozen credits" abroad even
though they be due to our Government rather than to individuals and
,
firms as in the past.
Under the circumstances it is sincerely hoped that before any American
exports are financed through the proposed bank, due precautions may be
taken to have commodities of the other country pledged for the loan.
Even then the proceeds from the collateral if sold abroad would have
to be transferred to the United States in the form of gold or other goods
or services. The supply of the precious metal is limited and goods of other
nations are salable here only if placed within buying reach of the greater
number of people. To achieve the latter arrangement, duties would need
to be lowered.
The reduction of tariffs on a reciprocal basis, therefore, becomes a prerequisite to the successful conduct of any import and export bank regardless of whether it be governmental or private.
There is, however, the difference that once the tariff obstacle is reduced,
private banks through their more extensive experience will be able in all
Probability to render a most valuable service on a large scale and thus
supply through regular channels the aid that the Government is endeavoring
to accord our foreign trade.
The present steps, it is hoped, may lead to recognition of the trouble
and to a fundamental remedy.
Judging by the friendliness of the new Government toward overseas
efforts, it may be assumed that the proper course will be finally selected
and that private initiative will be enabled to do the full part it is anxious
to do, if aided by reciprocal tariff agreements, toward the recovery of our
domestic and foreign trade.

An item regarding the formation of the Export-Import
•
Bank appeared in our issue of Feb. 17, page 1159.
Branch Banking Bill for New York State Introduced
in Assembly—Eight Trade Areas Set Up Throughout the State.
Assemblyman Moffat introduced on Feb.9 a bill to permit
branch banking within trade areas in the State of New York.
The bill sets up 8 banking districts, said Albany advices
Feb. 9 to the New York "Journal of Commerce" from which
we also quote:
The first centers around New York city and comprises the the Counties
of Suffolk, Nassau, Queens, Kings, Richmond, New York, Bronx, Westchester, Putnam, Dutchess. Rockland, Orange, Sullivan and Ulster.
The second centers around Albany and comprises the Counties of Columbia, Rensselaer, Washington, Greene. Albany, Schoharie, Schenectady,
Montgomery, Fulton. Saratoga, Warren, Hamilton, Essex and Clinton.
The third centers around Watertown and comprises the Counties of
Franklin, St. Lawrence. Lewis and Jefferson.
The fourth centers around Utica and comprises the Counties of Herkimer.
Oneida and Otsego.
The fifth centers around Syracuse and comprises the Counties of Oswego,
Onondaga and Cayuga.
The sixth centers around Binghampton and comprises the Counties of
Madison, Chenango, Delaware, Broome, Tioga, Chemung, Schuyler.
Tompkins and Cortland.

1332

Financial Chronicle

The seventh centers around Rochester and comprises the Counties of
Wayne, Seneca, Yates. Ontario, Monroe. Livingston, Steuben and Orleans.
The eight centers around Buffalo and comprises the Counties of Niagara,
Genesee, Erie, Wyoming, Allegany, Cattaraugus and Chautauqua.
The bill does not permit the establishment of branch banks (except in
the community in which its principal place of business is located) if the
opening of such a branch office increase the number of banking institutions
In the community. The bill also provides that if a branch bank is located
In a village, the combined capital and surplus of the bank must be not less
than $200,000.
Proposal to Establish Intermediate Credit Banks to
Advance Loans to Industry Endorsed by Federal
Advisory Council—Favors Modification of Federal
Securities Act—Statement by Governor Black of
Federal Reserve Board—Bill Authorizing Loans

Feb. 24 1934

of the industries showing great shrinkages in working capital over the last
few years, which in turn showed the need for new working capital.
"It was felt that this could best be supplied through a series of industrial
Intermediate Credit Banks under the jurisdiction of the Federal Reserve
banks and operating through those banks and their branches in the twelve
cities in which they are located. It was felt further that such mechanism
distributed throughout the country and cognizant of the needs of the
localities could most readily respond to the needs for capital.
"The Council members reported that conditions in their communities
showed a large improvement; that deposits in all the banks were increasing,
and that they thought this is due not only to Government expenditures but
to a real upturn in business conditions."

Walter W. Smith of St. Louis was re-elected President of
the Federal Advisory Countil and Howard A. Loeb of Phila.,
delphia, Vice-President. These officers and Walter E.
Frew of New York,,H. A. Maldowney of Pittsburgh, W.T.
Kamper of Kansas City, Mo., and Thomas W. Steele of
Introduced in Senate.
New Haven will comprise the Executive Committee. The
That a "real demand" exists "for working capital on the other
members are Howard Bruce of Baltimore, H. Lane
part of small industries," is the coneensus of opinion of the
Young of Atlanta, Theodore Wold of Minneapolis, Joseph
Federal Advisory Council of the Federal Reserve Board,
H. Frost of San Antonio and M. A. Arnold of Seattle. It is
which takes the position that "this could best be supplied
stated that no successor was named to the late Melvin E.
through a series of industrial Intermediate Credit Banks
Traylor of Chicago. The Council re-appointed Walter Inunder the jurisdiction of the Federal Reserve Banks." The
chenstein as Secretary.
views of the Advisory Council were made known on Feb. 20
Press advices from Washington on Feb. 16 indicated that
by Governor Black, following a meeting of the Council in
the Federal Reserve Board was engaged in perfecting legislaWashington on that date. The advisability of creating Intertion providing for the creation of a chain of banks which would
mediate Credit Banks to finance industry was discussed by
be organized to make capital loans to small industries during
President Roosevelt with Governor Black on Feb. 15, and the duration of the economic emergency and President Roosethe matter has since been the subject of conferences at the
velt was said at that time to have tentatively approved
White House and Treasury. In his statement of Feb. 20,
the preliminary plans, which would mean shifting the load
incident to the Advisory Council's meeting, Governor Black of capital financing from commercial banks to a chain speciindicated that members of the Council "were of the opinion ally set up for this purpose. Other agencies said to be cothere should be such modifications of the Securities Act as operating included the Treasury, National Recovery Adwould open up the Capital Market,and if the Capital Market
• *stration and the Reconstruction Finance Corporation.
were opened up there would be a veryready response in the
Further details of the project were given as follows in Assomarket to provide capitalfor new industry and the renovating
ciated Press Washington adviees Feb. 16:
of old industry."
Proceeding on the belief that a responsive market for capital funds is
While the Council was in session, Francis M. Law, Presi- an absolute essential to recovery, the Reserve Board has framed a plan for
dent of the American Bankers Association; Winthrop W. organizing banks designed to ease funds for heavy industries in re-employing
Aldrich, Chairman of the Chase National Bank, and Henry meTnLese banks would be somewhat analogous to the intermediate credit
eane in
decision
hasbee
en reached
ehis
ce ev
I. Harriman, President of the Chamber of Commerce of the banks that lend to farmers' co-operatives.eriBut nhoydt
bed
be
United States, discussed business and banking conditions at one whether their capital shouldprivately.
of the farm banks—or
separate conferences with President Roosevelt, according to a In Furcase
intermediaries, which probably would be located
terve
her,
, e industrial
us
Washington account Feb. 20 to the New York "Times"
Reserve *ank cities, would lend directly to the individual on a long-term
basis.
ye years was one figure mentioned.
which added:
proposal contended it would not compete with private

Mr. Law told the President that the banks rapidly were getting back
to a more normal lending policy and that his reports indicated a "very
definite" business improvement. Later he called upon Governor Black
of the Federal Reserve Board, and is understood to have approved the
principle of Intermediate Credit Banks for industry to provide a readier
handling of certain types of industrial financing.
Mr. Harriman also found business conditions better. Possible chan:*in the Securities Act and the extent to which a housing program was a* sable were among the chief topics he discussed with Mr. Roosevelt.

Authorization for the making of loans to small industries
from the funds of the ReConstruction Finance Corporation
is proposed in a bill introduced in the Senate on Feb. 22 by
Senator Reynolds (Dem., N. C.), according to a dispatch
on that date to the New York "Journal of Commerce" which
said:
Such credit aid would be available to individuals, partnerships, corporations and unincorporated associations engaged in commercial, manufacturing or industrial enterprises. The advances would be upon the same
terms and conditions, under the bill, if enacted, and would be subject to
the same limitations as are applicable to loans made by the RFC to financial
institutions

Governor Black's statement of Feb. 20, referred to above,
follows:
"The Advisory Council discussed the general credit situation and rePorted that all legitimate demands for commercial credit are being met by
the banks. Reports were received that some of the banks were instructing
their officers to consider and make loans for a longer time than the usual
90 or 120 day commercial papers, and to consider the making of loans of
6 or 12 or 18 months, if the needs were shown.
"The Council also considered, with signs of interest, government financing and were pleased it had been so successful and felt that the banks had
supported and should support the financial program of the Government.
The Council was glad to see that the Government offerings were for a lengthening period each time, and felt that the market would take other offerings
for a still longer time;and thought that if the Treasury should consider some
long-term financing it could be successfully accomplished.
Modification of Securities Act.
"They were of the opinion there should be such modifications of the
Securities Act as would open up the capital market,and if the capital market
was opened up there would be a very ready response in the market to
provide capital for new industry and the renovating of old industry, and
that through this process the heavy industries would be opened up and that
employment would be increased.
"They thought that through opening the capital market, there would
be very rapid strides in industry, with progress in employment, to the
general end and that the program to recovery would be speeded and greatly
advanced.
Intermediate Credit Banks.
There was discussion of the proposed Intermediate Banks of industry.
It was felt there was a real demand for working capital on the part of
small industries. This need was illustrated not only by the demand from
all over the country for working capital but by the financial statements




Me * *hind the
ba
g, but rather supplement it and open the way to more extensi
table lending.

and

36.1% of Deposits of Banks in United States Covered
by Temporary Insurance Jan. 31, According to
E. G. Bennett, Director of Federal Deposit Insurance Corporation.
Temporary insurance is now protecting no less than 36.1%
of all the deposits in all the banks of the country, E. G.
Bennett, Director of the Federal Deposit Insurance Corporation, said on Feb. 3.
Director Bennett made public a statistical report of the
Federal Deposit Insurance Corporation, complete up to the
close of business Jan. 31 1934, citing the following facts:
54,250,240 depositors are insured; number of banks holding
membership in the temporary fund, 13,434; total deposits
in all banks throughout the country (based on latest available figures), $42,460,253,890; insured deposits, $15,345,832,955, and the ratio of insured deposits to total deposits,
36.1%. Mr. Bennett said:
The temporary insurance fund (whereby individual deposit accounts in
banks which are members of the fulid are protected in full up to $2,500 per
account) has been in operation a little more than a month, and the
directors naturally are pleased with its success to date.
So far, no bank which is a member of the insurance fund has closed, and.
therefore, we have not had to pay out any of the Corporation's fund to
reimburse depositors.
We believe that the mortality rate among our insured banks will be low.
This is due to the fact that, before inauguration of the temporary fund,
5,814 banks, both Federal Reserve member and non-member, were strengthened financially to a considerable degree through sale of their obligations to
the Reconstruction Finance Corporation.
,

New York leads the States in the number of insured accounts, with 11,257,839. Other leaders are Pennsylvania,
5,863,469; California, 3,619,824; New Jersey, 3,121,162;
Illinois, 2,912,823, and Ohio, 2,803,916.
In total deposits, New York State again leads, with $15,393,326,630,followed by Pennsylvania, with $3,821,034,900;
Massachusetts, $3,616,809,450; California, $2,787,409,270;
Illinois, $2,158,787,600, and New Jersey, $1,684,002,870.
It was further stated in Mr. Bennett's announcement:
There are more insured deposits, $5,242,201,567,. in New York than in
any other State, while Pennsylvania has $1,570,954,711; California,
$1,155,145,981; New Jersey. $863,568,551; Illinois, $691,433,855, and
Ohio, $646,032,423.
Maine leads the Nation in the ratio of insured deposits to total deposits,
62%. New Mexico's Insured deposits are 60.7% of all the deposits in

Financial Chronicle

Volume 138

that State; Oregon, 54.3%; Mississippi, 53.9%; Wyoming, 53.9%, and
West Virginia, 53.6%. The lowest percentage is shown by MassachusettS,
with only 12.9% of total deposits insured, followed by New Hampshire,
13.1%; Vermont, 15.7%; Connecticut, 15.4%, and Rhode Island, 19.5%.
The low percentages for these New England States is due to the fact that,
because of legal restrictions and because of plans for their own State funds,
mutual savings banks in these particular States have not applied for membership in the Federal Deposit Insurance Corporation. With the exception
of the five mentioned no State shows a ratio of under 32%.

The following tabulation, made available by the Federal
Deposit Insurance Corporation, shows-by States-the
number of insured accounts, total deposits in all banks,
insured deposits, and the ratio of insured to total deposits:
Insured Deposits
Insured
Accounts.

*Total Deposits
in AU Banks.

Amount.

RatiotoTot.

596,281
Alabama
Arizona
69,047
283,377
Arkansa8'
3,619,824
California
383,293
Colorado
604,739
Connecticut
209,941
Delaware _____ _ _.
Dist. of Columbia_
403,067
406,474
Florida
733,342
Georgia
104,734
Idaho
2,912,823
Illinois
1,043,873
Indiana
692,295
Iowa
607,055
Kansas
830,562
Kentucky
569,632
Louisiana
532,308
Maine
1,061,411
Maryland
1,419,916
Massachusetts_._
Michigan
1,079,975
1,269,090
Minnesota
331,405
Mississippi
1,467,404
Missouri
149.280
Montana
426,617
Nebraska
21,861
Nevada
149,000
New Hampshire__ _
3,121,162
New Jersey
66,020
New Mexico
11,257,839
New York
North Carolina_
540,253
North Dakota _ _
145,915
Ohio
2,803,916
Oklahoma
700,028
Oregon
421,562
5,863,469
Pennsylvania
Rhode Island
341,309
South Carolina _ _ _ _
186,878
South Dakota
172,041
Tennessee
773,776
Texas
1,799,606
Utah
193,235
Vermont
99,423
Virginia
1,088,245
651,316
Washington
West Virginia
662.806
Wisconsin
1,272,666
Wyoming
110,149

5153,584,290
44,522,180
94,695,250
2,787,409,270
203,986,670
1,095,570,240
132,051,140
212,882,150
183,116,810
257,983.110
44,021,900
2,158,787,600
450,099,310
287,705,830
269,054,640
285,516,880
259.531,970
255,230,920
599,113,410
3,616,809,450
551,943,420
680,727,180
106,739,450
868,618,570
93,698.420
216,937,680
13,436,340
249,525.160
1,684,002,870
22,236,840
15,393,326,630
185,336,070
78,548,620
1,374,910,350
270,073,700
165,828,410
3,821,034,900
446,979,690
62,290,590
66,532,680
253,644,620
752,671,870
92,692,090
170,054,080
367,024,810
290,385,920
187,920,160
561,051,280
40,408,470

577,610,675
17,204,826
48,689,024
1,155,145,981
91,815,983
168,931,175
55,181,057
96,812,713
63,842,865
108,937,388
23,158,698
691,433,855
202,521,878
145,384,253
102,257,827
145.290,632
87,975,511
158,121,712
269,074,925
466,033,668
258,631,565
296,348,447
57,485.673
312,638,360
41,436,233
92.010,174
6,724,456
32,572,690
863,568,551
13,497,375
5,242,201,567
88,750,117
32,007,797
646,032.423
107,904,640
90,017,933
1,570,954,711
87,112.727
29,732,332
31,365,488
121,491,706
346,832,673
39,976,216
26,664,497
194,074,012
143,792,873
100.729,665
274,053,041
21,800,367

50.5%
38.6%
51.4%
41.4%
45.0%
15.4%
41.8%
45.5%
34.9%
42.2%
52.1%
32.0%
45.0%
50.5%
38.0%
50.9%
33.9%
62.0%
44.9%
12.9%
46.9%
43.5%
53.9%
36.0%
44.2%
42.4%
50.0%
13.1%
51.3%
60.7%
34.1%
47.9%
40.7%
47.0%
40.0%
54.3%
41.1%
19.5%
47.7%
47.1%
47.9%
46.1%
43.1%
15.7%
52.9%
49.5%
53.6%
48.8%
53.9%

States.

36.1%
54,250,240 542,460,253,890 815,345.832,955
* As reported in the Rand McNally Bankers Directory for July 1933, published
intemporary
the
of
members
In September. This includes all banks, whether
surance fund or not.
The number of banks in each State which are members of the temporary
insurance fund is shown below:
No. of Banks.
StateNo. of Banks.
State10
194 Nevada
Alabama
55
15 New Hampshire
Arizona
399
New
200
Jersey
Arkansas
43
286 New Mexico
California
898
136 New York
Colorado
222
Carolina
North
111
Connecticut
191
45 North Dakota
Delaware
634
21 Ohio
District of Columbia
394
138 Oklahoma
Florida
100
251 Oregon
Georgia
995
64 Pennsylvania
Idaho
Di
837 Rhode Island
Illinois
79
439 South Carolina
Indiana
208
446 South Dakota
Iowa
291
Kansas
377 Tennessee
817
Kentucky
378 Texas
61
142 Utah
Louisiana
42
Maine
86 Vermont
313
Maryland
178 Virginia
184
208 Washington
Massachusetts
157
334 West Virginia
M ichigan
530
648 Wisconsin
Minnesota
62
192 Wyoming
Mississippi
579
Missouri
122
Montana
13,434
Total
327
Nebraska
Total

List of Companies Filing Registration Statements
with Federal Trade Commission Under Securities
Act.
Under date of Feb. 17, the Federal Trade Commission
stated that 10 security issues totaling approximately $26,500,000 have been filed for registration under the Securities
Act. About $15,000,000 is for certificates of deposit in reorganization or readjustment issues, while more than $10,000,000 is for investment companies and $1,500,000 for industrial capital. The list follows:
Certificateholders' Committee Realty Foundation, Inc. (2-660), New York
City, calling for deposits of insured 6% participating trust certificates
series A, of Realty Foundation, Inc., a New York corporation organized in
1925 to deal in real estate mortgages. A petition in bankruptcy was filed
April 6 1933. Amount of the present issue is $1,000,000. Participating
certificates have been deposited from time to time since Jan. 1 1933. The
Committee announces it expects to solicit further deposits on the basis of a
reorganization plan in which holders of participating certificates may participate. Members of the Committee are: Robert P. Marshall, Harry T.
Petters, John J. Pulleyn, Daniel L. Reardon and Harold 0. Richard.
Bondholders' Committee Realty Foundation, Inc. (2-661). This is the
same company and the same committee as in Registration Statement 2-660.




1333

This issue is for $5,500,000 in bonds which have been accepted for deposit
since Jan. 1 1933. The Committee expects to prepare a reorganization plan
on the basis of which to solicit further deposits.
Central States Edison Co. First Lien Bondholders' Committee (2-662),
New York, calling for deposits of gold bonds and debentures of Central
States Edison Co., a utility holding company holding stocks of utility
companies supplying electric light and power, gas or water service to
consumers in parts of Wisconsin, Missouri, Nebraska, Kansas, Oklahoma,
Indiana and Alabama. This issue of $2,843,000 is divided as follows:
Fifteen-year first lien 53i% gold bonds series A, $1,919,000; 6% gold
debentures series A, $840,000; two-year 6% gold notes, $27,000, and
unsecured obligations not exceeding $57,000. A new company is expected
to be organized to acquire all of the securities now pledged. Members of
the Committee are: Harold C. Yeager, William L. Canady, Arnold Feldman,
all of New York; Phillips L. Goldsborough Jr., John Robertson, both of
Baltimore, and E. G. Parsly, Philadelphia.
Glasston Corp. (2-663), a New York corporation organized to purchase
and sell first mortgage bonds secured by first mortgages on New York City
real estate. The company proposes to issue income bonds and stock in a
total amount of $2,040,000 for corporation purposes. Among officers are:
Alexander M. Bing, President; Stanley M. Isaacs, Secretary, and Ruth W.

Dowlen, Treasurer, all of New York,
Commonwealth Tunnel Transportation Co. (2-664), Georgetown, Colo., a
Colorado corporation engaged in mining, extracting and refining of gold,
silver, copper, lead and other basic metals. The company proposes to issue
125,000 shares of common and preferred stock in an amount not to exceed
$250,000. Proceeds are to be used to develop and maintain mining property
and to purchase new machinery. No underwriters are listed but any broker
who shall receive a block of the stock to sell is to be paid a commission
..not in excess of 25%, which shall include expenses incurred. Among
officers are: C. G. Breitenbach, President, and C. A. Besse, SecretaryTreasurer, both of Georgetown, Colo.
Transcontinental Rest Cabins, Inc. (2-665), New York, a Delaware corporation organized Jan. 23 1934, to establish and maintain "a superior class
of rest cabins" to form a chain of cabins some 250 or 300 miles apart along
the principal highways of this country, and to which may be added all
complementing adjuncts such as restaurants or cafes, gas and oil stations,
garages and repair shops, amusement parks, &c. The company expects to
issue units of one share of 7% cumulative preferred and one share of class A
stock in an aggregate amount not to exceed $1,250,000. The underwriter,
Calvin T. Graves, 350 Madison Avenue, New York, is to receive a commission of $2.50 payable as and when each unit is sold and paid for. Among
officers are: Calvin T. Graves, President, and A. Graham Appleton, Secretary-Treasurer, both of New York.
Protective Committee for the First Mortgage 6% Serial Gold Bonds of
Federal District Trust (2-666), Ilitrtford, Conn., calling for deposits of
Federal District Trust, a Massachusetts business trust, in the amount of
$645,000. The Committee expects to develop a plan of reorganization
which contemplates acquisition upon foreclosure sale by the Committee
of the property known as 30 Federal Street, Boston, Mass., which is subject
to the mortgage securing the 30 Federal Street first mortgage 6% bonds.
Upon acquisition thereof the Committee will transfer the property to a
Corporation or Massachusetts business trust to be organized for that purpose in exchange for the entire capital stock or shares of such Corporation
or trust. Members of the Committee are: Carlos S. Holcomb, Albert T.
Dewey, and Winfield P. E. Viering, all of Hartford, Conn.; G. Arthur
Heermans, Corning, N. Y.; C. A. Neumeister, Auburn, N. Y., and William
H. Phelps, of Winsted, Conn.
W. Dale Clark and Others (2-667), Omaha, Nebraska, calling for deposits
of $2,018,900 in bonds of Farmers' Irrigation District of Scotts Bluff and
Morrill Counties, Nebraska. Members of the Committee are: W. Dale
Clark, Omaha; Alfred G. Brown, Denver, and William R. Compton, New
York,
Reorganization Committee, Hawley Pulp & Paper Co. (2-668), Portland,
Oregon, calling for deposits of $2,127,500 first mortgage sinking fund 6%
gold bonds; 20,000 shares of first preferred $7 cumulative no par stock;
512 1/3 shares of second preferred $6 cumulative no par stock, and
25,621 23/24 shares of common stock represented by voting trust certificates. Under a plan of reorganization it is proposed to preserve, unchanged,
the company's capital structure, and, through the existing Committees
formed to represent the various classes of securities, to obtain deposits of
the securities to modify the terms and conditions thereof. Hawley Pulp
Paper Co., a Delaware Corporation, was incorporated in 1926 as successor
to Hawley Pulp & Paper Co., an Oregon Corporation incorporated in 1908.
Members of the Committee are: Isaac D. Hunt, Watson Eastman, E. S.
Collins, W. Lair Thompson, all of Portland, and A. S. Kerry, of Seattle.
Fundamental Investors, Inc. (2-669), Jersey City, a Delaware Corporation engaging in the securities investment business, proposes to issue shares
of capital stock in an aggregate amount of $8,804,864.28. The underwriter
is Fundamental Group Corp., Jersey City. Among officers are: Paul
Appenzellar, Chairman of the Beard; Allan L. Melhado, President; Edward
S. Hunter, Secretary and Assistant Treasurer, and John Hepburn Jobes,
Treasurer and Assistant Secretary, all of New York and Jersey City.

Elsewhere in this issue we give registration statements
670-671, covering refunding issues filed by mortgage companies. A group of registration statements (672-679) filed
witfh the Federal Trade Commission comprises seven security
issues totaling more than $16,000,000. In indicating this, on
Feb. 20, the Commission stated that 75% of this total represents reorganization or financial readjustment projects.
Three million are for four industrial issues, of which three
are mining ventures. Investment issues account for $700,000.
The registration statements are listed as follows:
American Water Works & Electric Co., Inc. (2-672), New York. This
docket number has been assigned to this registration statement, details of
which were announced in Release No. 117 of Feb. 8 1934.
Golden Quebec Mines, Ltd. (2-673), Toronto, Canada, a Canadian Corporation proposing to develop mineral lands and deposits, and to issue 350,000
shares of common stock at an aggregate price not to exceed $350,000.. The
underwriters are: C. Morrison Smith & Co., Inc., 67 Wall Street, New
York, who act also as United States agents. Among officers are: Bernard
John Cavanaugh, President, and Murray R. Raymond, Secretary, Toronto.
Motors Securities Co., Inc. (2-674), Shreveport, La., proposing to issue
$700,000 in Motors Securities Co. Collateral Trust Notes, the trust property consisting of notes executed by automobile purchasers at retail aggregating 120% of the collateral trust notes outstanding at any one time.
At Dec. 31 1933 the total of such notes in the hands of the trustee was

1334

Financial Chronicle

$565,113.03. Among officers of the securities company are: George D.
Wray, President and Chief Financial Officer; Leon J. Phillips, Vice-President, Chief Executive and Accounting Officer, and Lynn Jennings, SecretaryTreasurer, all of Shreveport.
Grape Vine Mountain Gold Mines Co., Inc. (2-675), Las Vegas, Nevada,
a Delaware Corporation owning mining property in Nevada, and proposing
to issue 200,000 shares of common stock at a par value of $1 each, to be
offered to the public at 30c. a share. Among officers are: 0. H. Smith,
Beatty, Nevada, President, and Charles Lee Horsey, Las Vegas, Nevada,
Secretary-Treasurer.
War Eagle Gold Mines Co. (2-676), Denver, a Colorado Corporation engaging in mining, and proposing to issue 1,000,000 shares of common capital
stock at 10c. a share. Among officers are: John Ilgaudas, President, and
Harry T. Haskins, Secretary-Treasurer, both of Denver.
Oregon Terminals Co. Reorganization Committee (2-677), Portland, Ore,Wo
gon, calling for deposits of Oregon Terminals Co. First Mortgage 6,
Sinking Fund Coupon Gold Bonds, of which the outstanding issue is
At
the
time
the
securities
$1,438,500. The original issue was $1,500,000.
to be called were issued, Oregon Terminals Co. was in the business of
owning and leasing real estate, having been incorporated April 22 1927, in
Oregon. Members of the Reorganization Committee are: Jay Bowerman,
Portland; Selah Chamberlain, San Francisco; William H. Hemphill, Ross
McIntyre, Amedee M. Smith, all of Portland, and Thad Sweek, Seattle, Wash.
Frank C. Munson and Others (2-678), 67 Wall Street, New York City,
calling for deposits of Munson Steamship Line in the following amounts:
$4,354,000 6% secured gold bonds; $2,430,000 61
/
2% gold debenture bonds;
11,045 shares of preferred stock at par value $100 each, and an estimated
amount of general claims against the company of $3,000,000 as of Feb. 1
1934. Total amount of issue, $10,888,500. Members of the Committee,
are: Frank C. Munson, President of Munson Steamship Line, New York;
John W. Connolly, Department Manager, Standard Oil Co. of New Jersey,
New York City, and John R. Van Horne, New York City.
Housing Corp. of America (2-679), New York City, a New York Corporation organized to build and sell moderately priced housing, a business
corporation not affiliated with Federal, State or other governmental agencies.
The company proposes to issue class A and B stock of an aggregate of
$2,538,000, the proceeds to be used for organization expenses, purchase of
land, construction coats, and the like. The underwriter, Midvale Securities
Corp., New York City, has an option to purchase 200,000 shares of class A
stock at $10.50 a share, which it expects to offer at $12.50 a share. Among
the officers are: Walter T. Smith, Montclair, N. J., President; Louis K.
Comstock, New York, Treasurer, and Richard T. Childs, Mineola, N. Y.,
Secretary.

The Commission says:
In no case does the act of filing with the Commission give to a security
the Commission's approval or indicate that the Commission has passed on
the merits of the issue or that the registration statement itself is correct.

A list of registration statements filed with the Commission was given in our issue of Feb. 17, page 1163.
Mortgage Companies File for Registration with Federal
Trade Commission Under Securities Act $27,000,000
of Refunding Issues.
In making public, on Feb. 19, Registration Statements
670-671, the Federal Trade Commission stated that two
Baltimore mortgage companies owned by the United States
Fidelity & Guaranty Co., Baltimore, and proposing to take
over mortgages and bonds of 14 companies operating In 17
States and Canada, have filed for registration, under the
Securities Act, with the Commission, bond and debenture
issues totaling $27,000,000. The Commission's announcement follows:
The companies are the Associated Mortgage Companies, Inc., filing an
Issue of $19,000,000 debentures, and the Allied Mortgage Companies, Inc.,
which filed a statement for $8,000,000 collateral trust bonds.
Aided by loans from the Reconstruction Finance Corporation, the general
refunding plan sponsored by the United States Fidelity & Guaranty Co.
provides for liquidation of mortgages held by various trustees as security for
the bonds of the following companies: Aetna Mortgage Corp., Baltimore;
Bonded Mortgage Co., Baltimore; Chesapeake Mortgage Co., Baltimore;
Federal Mortgage Co., Asheville, N. C.; Federal Mortgage Co.. Dallas:
Florida First Mortgage Corp., Orlando; Guaranteed Mortgage Co., Minneapolis ; Mortgage Finance Co., West Palm Beach, Fla.; Standard Mortgage
Co., Asheville; Security Mortgage Co., Atlanta; Stockton Mortgage Co.,
Jacksonville; Sun Mortgage Co., Baltimore; United Mortgage Corp., Asheville, and United States Mortgage Bond Co., Detroit.
These companies do business in Maryland, North Carolina, Texas, Florida,
Georgia, Alabama, South Carolina, Pennsylvania, South Dakota, Minnesota,
Wisconsin, Iowa, North Dakota, Michigan, California, Washington and
Oregon.
Describing a real estate mortgage situation resulting from the business
depression as "so acute" and "so abnormal" that it has extended "far
beyond any reasonable expectancy," it is reported that several of the mort.
gage companies are in receivership, others are insolvent, while none has
been able to fully meet principal and interest payments on its bonds. They
say their plan is to "liquidate the mortgages constituting the trust property
In an orderly way without sacrificing values," and "thereby to ultimately
relieve the mortgage companies of their obligations and the surety company
of its guaranties, and obtain for the bondholders the greatest possible return
for their investment."
Two options are available under the general refunding plan. Option One
provides for exchange of present bonds for bonds of like amount of the new
company, Allied Mortgage Companies, Inc. This exchange would involve
53 issues of the 14 mortgage companies, which would be issued in 14
series, as follows:
Series A bonds for 2 original issues of Aetna Mortgage Corp.
Series B bonds for 3 original issues of Bonded Mortgage Co.
Series C bonds for 3 original issues of Chesapeake Mortgage Co.
Series D bonds for 9 original issues of Federal Mortgage Co.
Series E bonds for 3 original issues of Federal Mortgage Co.
Series F bonds for 3 original issues of Florida First Mortgage Corp.
Series G bonds for 3 original issues of Guaranteed Mortgage Co.
Series H bonds for 3 original issues of Mortgage Finance Co.
Series I bonds for 3 original issues of Standard Mortgage Co.




Feb. 24 1934

Series J bonds for 7 original issues of Security Mortgage Co.
Series K bonds for 1 original issue of Stockton Mortgage Co.
Series L bonds for 6 original issues of Sun Mortgage Co.
Series M bonds for 2 original issues of United Mortgage Corp.
Series N bonds for 5 original issues of United States Mortgage Bond Co.
Each series is to be secured by a cross-section of the mortgages which
comprised the security of all the issues of one of the mortgage companies.
For instance, series A of the new bonds would be secured by the mortgages
which were the security for Aetna Mortgage Co., series A bonds, and
certificates, &c.
The new bonds would be dated Dec. 1 1933, and would mature in 20
years. They are to bear interest at specified rates for each five-year period,
the average rate being 31,i%. Payment of an amount sufficient to pay
principal and interest of the new bonds would be guaranteed by the United
States Fidelity & Guaranty Co.
Option Two, through co-operation of the Reconstruction Finance Corporation, provides for payment of $300 in cash per $1,000 bond, together with
a $700 20-year debenture of Associated Mortgage Co., Inc.
Debentures are not to be guaranteed as to principal, but would bear
interest guaranteed by the United States Fidelity & Guaranty On., at varying rates for three years, then for two years, and then for the three succeeding five-year periods, the average being 4.35%.
Bonds or a representative cross-section of the mortgage collateral securing
the bonds deposited under this option are to be pledged with the Reconstruction Finance Corporation as security for its loans, which shall not exceed
33% of the face value of the collateral. After repayment of these loans
through liquidation of such portion of the collateral as is necessary, the
remaining assets are to be returned to Associated Mortgage Co., Inc., the
issuing company.
Under both options, it is provided that any net earnings in excess of the
guaranteed interest up to a total of 6% in any one year shall be paid the
securityholders and any further available net earnings in excess of the 6%
payment (after repayment of the Reconstruction Finance Corporation loans
in the case of Option Two) shall be used first to repay the guarantor of
any amount paid by it under its guarantee, and, second, for the retirement
of the securities.

Securities of Corporations Formed for Social, Literary,
Artistic or Athletic Purposes Exempt from Registration Underi Federall Securities Act When Not
Operated for Profit andtWhere Aggregate Securities Do Not Exceed $100,000—Ruling by Federal
Trade Commission.
In announcing, on Feb. 17, additions (effective Feb. 16)
to the rules under which the Securities Act of 1933 is administered, the Federal Trade Commission said:
Under the new rule there are exempted from registration under the
Securities Act such securities as are proposed to be issued by a corporation
organized and operated exclusively for social, literary, artistic or athletic
purposes and not for profit, provided the aggregate amount of the securities
does not exceed $100,000, and with certain other provisions set forth in
the amended rules, which are as follows:
The Federal Trade Commission, in the exercise of the powers given it by
Section 3 (b) of the Securities Act of 1933, hereby adopts the following rule:
(1) The rule adopted on Nov. 1 1933 is hereby amended by inserting
at the end thereof the following:
"IV. Securities issued by a person organized and operated exclusively
for social, literary, artistic or athletic purposes and not for pecuniary
profit, and no part of the net earnings of which inures to the benefit of
any person, private stockholder, or individual, if the following conditions
are complied with:
"1. That no portion of the issue of securities herein exempted be issued
otherwise than for cash.
"2. That the aggregate amount (being the product of the number of
units offered and the price per unit at which they are offered) at which
the issue of securities herein exempted is offered does not exceed $100,000
exclusive of accrued interest and/or dividends.
"3. That the net cash proceeds, after deduction of all expenses of distribution, realized by the same issuer from all other securities issued by it within
one year previous to the offering of the securities herein exempted, together
with the net cash proceeds to be realized from the issue of securities herein
exempted, shall not exceed $100,000. For the purposes of this paragraph,
only such securities shall be considered as are unregistered and would have
required registration upon their offering but for the provisions of Part IV
of this rule.
"4. That no commission or other remuneration shall be paid or given
directly or indirectly in connection with the offering or issue of the
securities.
"5. That the price at which the securities are issued shall be not less
than $100 per unit.
"6. That no portion of the issue of securities herein exempted shall be
issued, directly or indirectly, to other than bona fide members or memberselect of the issuer.
"7. That the purposes to which the proceeds of the issue are to be devoted
shall be all or any one of the purposes for which the issuer is organized and
operated."
(2) This rule shall be published on Feb. 16 1934, and shall thereupon
become effective.

On Complaint of Federal Trade Commission Judge
Knox of U. S. District Court in New York Issues
Injunction Restraining Maison Pichel, Inc., from
Representing that Merits of Securities Registered
Under Securities Act Had Been Passed Upon by
Commission.
An announcement, issued Feb. 15 by the Federal Trade
Commission, said:
The Federal Trade Commission has received from the Clerk of the United
States District Court for the Southern District of New York, Judge John C.
Knox presiding, a copy of an order for injunction issued by the Court
against Matson Pichel, Inc., upon a complaint filed by the Federal Trade
Commission, enjoining the defendant from representing in any manner that
securities registered with the Commission had been passed upon in any way
as to their merits or had been given the approval of the Commission.
In issuing the order for an injunction, the Court said:
"Upon consideration of the bill of complaint herein and the affidavits filed therewith, and It appearing therefrom to the satisfaction of the court that the defendant.

Financial Chronicle

Volume 138

Matson Plchel, Inc., has falsely represented that the Federal Trade Commission
has passed upon the merits of, and given approval to, the preferred and common
stock, issued or authorized to be issued by said defendant, which said stock has been
registered with the Federal Trade Commission, and It appearing that said false
representations of said defendant were made In violation of the provisions of the
Securities Act of 1933, it is, by the court, this 13th day of February 1934,
'Ordered, that the defendant, Matson Pichel, Inc., a corporation, its several
agents, servants, representatives, employees, successors and assigns, and all persons acting by, through or under them, or any of them, be, and they are hereby
enjoined and restrained, from representing in any manner, directly or indireciy,
that the Federal Trade Commission has passed upon the merits of, or given approval to, the preferred and common stock Issued or authorized to be issued by said
defendant, which said stock has been registered with said Federal Trade Commission; and it Is further
"Ordered, that this Injunction shall continue in full force and effect until revoked
or modified by further order of this court in that regard."
The order was signed by Judge Knox.
With its bill of camplaint, the Federal Trade Commission presented evidence to the Court to show that the respondent, Matson Pichel, Inc., had, in
marketing its securities, represented that registration of the securities with
the Federal Trade Commission under the Securities Act, and the registration
becoming effective, was "practically a guarantee" that the purchaser "could
not lose any money if he purchased the stock."
More than usual interest was centered in this case because it was the
first to come before any Court growing out of the Securities Act of 1933.
In all security registrations filed with the Federal Trade Commission, the
Commission emphatically states that neither the fact that such statements
have been filed nor the statements in the registration statement or prospectus issued under the prescribed rules and regulations, shall be deemed a
finding by the Commission that the statements are true and accurate or that
the merits of the securities have been given approval in any way.

United States Money Policy Divides Economists—But
Questionnaire Shows That Majority See Danger in
Currency Expansion—Hit Price-raising Plan66.6% Hold Inflation Can Be Controlled, But Only
41.9% Think It Will Be.
A report showing to what degree the Administration's
monetary policy is supported throughout the country was
published on Feb. 18, it was based on 845 responses to a Nation-wide questionnaire sent to 2,560 members of the American Economic Association, comprising outstanding professors
of economics, money, statistics and social sciences, research
workers in those fields and business executives residing in
the United States. The New York "Times" of Feb. 19,
from which the foregoing is taken, also had the following
to say regarding the views presented in the report:
Replies to Major Questions.
All questions were framed to permit a yes-or-no answer. The replies to
major questions were divided as follows:
Do you believe the present trend in the United States is toward dangerous
expansion of money? Yes, 51.4%; others, No.
Do you believe the present trend in the United States is toward dangerous expansion of credit? Yes, 55.9%; others, No.
Do you favor returning to a gold standard with a dollar of about 15
grains (a dollar worth about 65 cents compared with the 59 cents fixed
by President Roosevelt, Jan. 31). Yes, 49.8%; others, No.
Do you think it politically possible to return to 23.22 grains of fine
gold—the old standard—within a reasonable length of time? Yes, 22.8%;
others, No.
Do you believe that American money and credit policies should be
directed toward restoring prices to some predetermined level—for example,
that of 1926? Yes, 34.4% others, No.
Do you believe that inflation can be controlled under existing conditions?
Yes, 66.6%; others, No.
Do you believe that inflation is likely to be controlled? Yes, 41.9%:
others, No.
Do you favor further administrative efforts to raise prices by monetary
devices? Yes. 26.7%; others, No.
The Sponsoring Committee.
The questionnaire was sponsored by the Economist's National Committee on monetary policy, headed by Edwin W. Kemmerer, Professor
of International Finance at Princeton University. and Ray B. Westerfield, Professor of Political Economy at Yale University, and which includes Oliver M. W. Sprague, now Professor of Banking and Finance at
Harvard University; Wesley C. Mitchell, Professor of Economics, and H.
Parker Willis, Professor of Banking, both at Columbia University, and
85 others described "as selected with a view to getting as authoritative
opinions as nossible on the monetary question."
It was undertaken, according to the Committee. "for the reason that
it was felt the Administration was following a course advised by a narrow
minority of economists and it was deemed important to know the facts
on this point."
The sponsoring committee, which includes some of the foremost critics
of the Administration's monetary policies, also admitted in the report
that it expected a charge of "bias" against its findings; consequently the
whole conduct of the questionnaire and the tabulation of the figures were
placed in the "impartial hands" of Professor WIllford I. King, Secretary
and Treasurer of the American Statistical Association.
With this introduction, the report, prepared by Professor Westerfield as
President of the Committee, finds as follows:
"Those who are so willed will say that the results of our questionnaire
reveal but ono thing, namely, that the economists are divided, that the
Administration is warranted in choosing between them, that there are
as good arguments on one side as another.
"Unanimity Not Desirable."
"This is a specious position. By the very nature of things, unanimity
on such things is not to be expected or oven desirable. The prerequisites
to unanimity are that the question be naively simple, that the facts be
fully known by all, that economic causation follow rigidly scientific laws
determined by previous experience and that economists be devoid of sentiment; whereas the monetary question is frightfully involved and complex,
the conditions are unprecedented, the number of functions involved defies
mathematical formula and prediction, and the economists differ in information, mental capacity and sentiments.
"Let him be as scientific as he will, a learned and capable economist
is still influenced when it comes to the interpretation of our confused situation and the formulation of national policy by his conservative or liberal
feelings, by his patriotic, religious and other bent.




1335

"Our committee is now publishing these findings in detail and not suppressing them. This contrasts with the action of the Committee of the
Nation, with their somewhat similar but smaller questionnaire."
The committee declared that "the responses to the questionnaire amply
demonstrate that the Administration's monetary policy is advocated and
supported by only a narrow minority of the economists in all major phases
and in almost every minor phase."
This declaration was made in the Committee's report, written by Professor Westerfield, although the tabulation which he attached from Professor
King and the figures which he quoted himself, as reproduced above, register
In general an even split of opinion concerning the possible danger of currency and credit inflation, the proper gold price of the dollar, and the
controllability of inflation.
Even on the question of further administrative efforts to raise prices
by monetary devices, where the Administration support was found to be
only 26.7%. it represented 217 replies in a field of responses characterized
in general by Professor Westerfield at the outset of his report as "probably
the ones who are the most alive to the question, who have been thinking
most and who have the most decided views on the question."
This vote against further price-raising efforts was pronounced by the
report "an overwhelming vote against further tinkering with the dollar."
The votes of the 845 responses throughout, however, included the answers
of the 90 sponsors of the questionnaire, who on this question were only 2.7%
in support of the Administration.
Responses Contrasted.
In general the support of the Administration among the 90 sponsors of
the questionnaires was greatly below the general level of all 845 who answered their questions. The relative percentages of Government support
are shown below:
All
Committee
Responses.
Responses,
.6
"
4Z
17.9
Money.
44.1
16.9
Credit
49.8
36.0
New dollar
78.2
70.0
Old dollar
34.4
9.9
Price raising
66.6
39.7
Inflation controllable
41.1
10.1
Likely to be controlled
26.7
2.7
More devices
The tabulations of replies are published with the report in full to-day
in the "Independent Journal" of Columbia University.

Secretary Hull Believes Rapid Development of InterAmerican Commerce Possible Within Few Years—
Tells National Press Club International Trade Is
"Life Blood of Civilization" and Urges Further
Steps to Speed World Recovery.
Declaring that the nations of the Western Hemisphere
are influenced by the new spirit of the Golden Rule, as
displayed at the recent Pan-American Conference at Montevideo, Secretary of State Cordell Hull told the National
Press Club in Washington on Feb. 10 that this attitude
contrasted with that of the nations of Europe which, he
said, "are threatening to become decadent by clinging
Bourbon-like to obsolete ideas." Mr. Hull's speech was
construed as a reply to a recent declaration by Professor
Raymond Moley that world trade had no part in the recovery program of the United States. This assertion Mr.
Kull denied, saying that "international trade is the life blood
of civilization" and that with initiative and co-operation
much commerce "could be developed among the American
nations within a few years." We quote from his address
as contained in a Washington disptach Feb. 10 to the
New York "Times":
We have been told that world conditions could have no serious effect on
industry and business in a nation thus walled off, whereas it is now insisted
that world causes are chiefly responsbile for the depression. The paradoxical plea then follows that world remedies, in the way of practical
international economic co-operation, are not to any extent necessary for
business recovery.
The happy idea always held out is that to shut out imports remotely
competitive will permit a corresponding increase of production at home,
whereas there has for some years been a steady slump in the volume of
domestic production and trade almost equal in percentage to the slump in
International trade.
Recommendations which the Secretary of State will make to President
Roosevelt on foreign trade and tariff policy, with the probable support of
George N.Peek, who has submitted a report on the subject to the President,
were foreshadowed in Mr. Hull's declaration that "the many nations whose
economic lives and whose ability to pay indebtedness depend upon an export
business are virtually helpless, while other nations having surpluses to sell
and debts to collect are most injuriously affected."
Trade Possibilities "Neglected."
"The vast trade possibilities mutually profitable to all the American
nations thus far have been sadly neglected," Mr. Hull continued. "The
natural resources of the three Americas, unexcelled in richness and variety,
are largely undeveloped. They afford the basis for exchange and trade to
an equally profitable extent by these 21 countries.
"Until recently, communications and transportation between the two
continents were hoeplessiy lacking. It is a matter of gratification, however,
that some progress has been made. It is an axiom that international trade
is the life blood of civilization. It brings people together, makes them
prosperous materially and enables them to pool their combined civilizations.
"With the proper degree of initiative, patience and co-operation, a great
volume of commerce, highly profitable to every one, could be developed
among the American nations within a few years."
Mr. Hull said that "there is ground for hope, not to say belief, that the
Montevideo conference laid the foundations for a return to sanity and to
conditions of peace in the Chaco at no distant date." He asserted that all
of the 21 nations represented devoted "concrete action and utterances"
to the cause of peace, while "some statesmen in other countries were urging
policies and preachments which'they knew would probably lead to war.'

More Production Credit Associations Chartered.
Forty production credit associations were chartered by
the Governor of the Farm Credit Administration, Wm. I.

1336

Financial Chronicle

Myers, last week, bringing the total throughout the United
States to 606, these associations having an authorized capital
of $63,649,285. About four-fifths of the initial capital is
supplied by the twelve production credit corporations, one
of which is located at the headquarters of each regional
organization of the Farm Credit Administration. The latter
also had the following to say on Feb. 22:
The production credit associations are given a specific area in which to
make loans and those chartered now cover three-fourths of the United
States, being organized in the 48 States and covering 34 States completely.
The remaining areas are being organized rapidly. Loans are made by these
associations for general agricultural purposes, such as producing and harvesting of crops; breeding, raising and fattening of livestock; and the production of poultry and livestock products. The Farm Credit Administration
plans to have associations available throughout the entire United States
by the time production credit needs are developed this spring.
The associations chartered during the week are as follows:
First District.
Address,
Sidney, N. Y
Fourth District.
NameAddress.
The Marion Production Credit Assn
Marion, Ohio
The Elyria Production Credit Assn
Elyria, Ohio
The Jackson Production Credit Assn_ _ _ _Jackson, Ohio
The Cambridge Production Credit AssnCambridge. Ohio
Ashland Production Credit Assn
Ashland, Ohio
The Warren Production Credit Assn
Warren, Ohio
Greencastle Production Credit Assn
Greencastle, Ind
The Lafayette Production Credit Assn._ _Lafayette, Ind
Bloomfield Production Credit Assn
Bloomfield, Ind
Flemingsburg Production Credit Assn_Flemingsburg, Ky
Cumberland Production Credit Assn_ Cumberland, Ky
Danville Production Credit Assn
Danville, Ky
Big Sandy Production Credit Assn
Big Sandy, KY
Eighth District.
NameAddress.
Watertown Production Credit Assn
Watertown, S. flak
Aberdeen Production Credit Assn
Aberdeen,S.flak
Huron Production Credit Assn
Huron, S. flak
Sioux Falls Production Credit Assn
Sioux Falls, S. flak
Pierre Production Credit Assn
Pierre, S.Dak
Winner Production Credit Assn
Winner, S. flak
Elkader Production Credit Assn
Elkader,Iowa
Davenport Production Credit Assn
Davenport, Iowa
Mason City Production Credit Assn
Mason City, Iowa
Cedar Rapids Production Credit Assn..__Cedar Rapids, Iowa
Mt. Pleasant Production Credit Assn____Mt. Pleasant, Iowa
O'Neill Production Credit Assn
O'Neill, Neb
Ninth District.
NameAddress.
Woodward Production Credit Assn
Woodward, Okla
Salina Production Credit Assn
Salina, Kan
Northwest Kansas Produc. Credit Assn_ _ Colby, Kan
Stockton Production Credit Assn
Stockton, Kan
North Central Kansas Prod. Credit Assn_Concordia, Kan
Garden City Production Credit Assn____Garden, City, Kan
Hogoton Production Credit Assn
Hogoton, Kan
LaJunta Production Credit Assn
LaJunta, Colo
Tenth District.
NameAddress.
Texas Production Credit Assn
San Angelo, Tex
Twelfth District.
NameAddress.
Western Montana Prod. Credit Assn_ __Missoula, Mont
Northeast Montana Prod. Credit Assn__Wolf Point, Mont
Milk River Production Credit Assn
Malta, Mont
Baker Production Credit Assn
Baker, Ore., Mont
Pendleton Production Credit Assn
Pendleton, Ore
Name-

Sidney Production Credit Assn

Authorized Capital.
$150,000
Authorized Capital.
$100,000
60,000
80,000
100,000
80,000
120,000
120,000
120,000
100,000
50,000
40,000
120,000

40,000
Authorized Capital,
$125,000
180,000
160,000
130,000
110,000
180,000
75,000
100,000
75,000
80,000
75,000
120,000
Authorized Capital.
$200.000
140,000
160,000
160,000
140,000
160,000
120,000
120,000
Authorized Capital.
$1,000,000
Authorized Capital.
$100,000
150,000
150,000
200.000
200,000

The total production credit associations chartered and capital stock
authorized to date by districts are as follows:
Authorized
No. of
No. of
Authorized
Capital.
DistrictAssns.
District.
Assns.
Capital,
1
2
3
4
5

6
7

28
43
116
31
30
109
88

$5,100,000 8
5,800,0009
6,379,100 10
2,720,000 11
5.635,685 12
5,285,000
6,089,500

14
30
52
33
32
-

606

$1,660,000
4,140,000
5,870,000
6,960,000
8.110,000
563,649,285

Opposition Voiced by Trust Company Officers to
Proposals in New York State Legislature Permitting Acquisition and Operation of Public
Utilities by Municipalities in Unregulated Competition with Privately Owned Systems-Fear
Effect on Investments.

Legislation proposed in the New York State Legislature
permitting the acquisition and operation of public utility
plants and systems by municipalities in unregulated competition with privately owned utilities and without first
providing for the purchase of such private companies at
fair values, was condemned by the conference of trust company officers of the New York State Bankers Association
held in New York City at the Waldorf-Astoria on Feb. 15.
If enacted into law, the trust executives stated in a resolution,
that legislation will destroy the value of the securities of
well-managed public utility companies in which hundreds
of millions of dollars of trust funds committed to their care
are now invested. Moreover, the enactment of such legislation in New York State would lead to the enactment of
similar legislation in other States, the resolution says, with
the same menace to trust funds.
The resolution also criticized the measures proposed at
Albany to limit the return on capital invested in public
utilities to 5% on the original cost of plant and property
less depreciation in the determination of utility rates. The
resolution reads as follows:
Whereas, legislation has been proposed in New York State authorizing
and encouraging the ownership and operation of public utility plants and
systems by municipalities without being subject to any regulation as to




Feb. 24 1934

rates or required to acquire at fair value the property of private companies now rendering service, and
Whereas,other legislation proposed in New York State would set 5 Per contum per annum upon original cost of plant and property, less depreciation,
as an arbitrary fair rate of return on invested capital for the purpose of
determining so-called "temporary" rates, and
Whereas, it may be expected that the enactment of such legislation
would be followed by similar legislation in other States where it is not now
in force, and
Whereas, it is evident that the enactment of such legislation would lead
to unfair competition with, and unfair restrictions of, existing privately
owned and operated public utilities and the destruction of the value of
their investments, and constitute a serious threat if not a material detriment
to the value of the securities thereof, and
Whereas, the principal funds of many thousands of trust estates to the
extent of hundreds of millions of dollars have been and are now Invested
in the securities of sound, well-managed public utility operating companies,
which securities have proven to be one of the best investments during the
period of unsettled economic conditions during the past four years; Therefore, be it
Resolved, That this Conference of Trust Officers of the New York State
Bankers Association record its opposition to legislation on the part of
any State permitting municipal ownership of public utility properties in
unregulated competition with existing privately owned companies and
without first providing for the purchase of such private companies at fair
values and (or) the arbitrary restrictions of privately owned companies
as proposed in the legislation referred to above.

The meeting was the first mid-winter conference of the
officers of the trust institutions of New York State held for
the purpose of giving them an opportunity for collective
discussion of problems affecting their institutions without
waiting for the annual convention of the State Bankers
Association. It was addressed by Franklin F. Russell,
Professor of Law at the Brooklyn Law School, on the subject
of competition between lawyers and trust companies. It
is stated that the conference was called at this particular
time because of the presence of so many trust company
executives in the city for the Mid-winter Conference of the
Trust Division of the American Bankers Association. It
is planned to make the State Conference an annual affair.
Federal Radio Commission Warns Broadcasters Against
Liquor Advertising-Announces That Those Which
Allow It Face Possible Loss of License.
The Federal Radio Commission issued a statement, Feb. 2,
In which it warned radio broadcasters with regard to liquor
advertising. Calling attention to that section of the Radio
Act which
.provides that stations be licensed only when their
operations are in the public interest, convenience and necessity, the Commission asked co-operation of the broadcasters
In dealing with liquor advertising. The statement read:
The Federal Radio Commission calls renewed attention of broadcasters
and advertisers to that section of the Radio Act of 1927 whiah provides
that stations are licensed only when their operation will serve the public
interest, convenience and necessity, and asks the intelligent co-operation of
both groups in so far as liquor advertising is concerned.
Although the Eighteenth Amendment to the Constitution of the United
States has been repealed by the Twenty-first, and so far as the Federal
Government is concerned there is no liquor prohibition, it is well known that
millions of listeners throughout the United States do not use intoxicating
liquors and many children of both users and non-users are part of the
listening public.
The Commission asks broadcasters and advertisers to bear this in mind.
The Commission will designate for hearing the renewal of applications
of all stations unmindful of the foregoing and they will be required to make
a showing that the continued operation will serve the public interest, convenience and necessity.

President Roosevelt Reported as Favoring Cut in
Interest Rates on Many Municipal, Industrial
and Foreign Securities-Said to Plan Legislation
if Voluntary Action Is Not Taken-White House
Conference Discusses Projected Action by Congress-No RFC Loans Contemplated,
President Roosevelt expressed himself, on Feb. 7, at his
regular press conference, as sympathetic toward legislation
which would permit financially embarrassed municipalities,
corporations and foreign governments to readjust downward
the interest rates on many of their outstanding obligations.
It was not indicated at the White House that the President
had any definite reduction in mind, but it was said that he
believes a reorganization of the debt structure is of great
Importance under current economic conditions. The President was reported to feel that in the case of the railroads,
for example, the principle of lower interest rates and substantial amortization charges should be incorporated in refunding operations. This policy would include reducing indebtedness on which there are fixed charges, thus lessening
the possibility of railroad receiverships.
The President conferred, Feb. 13, with Congressional leaders on projected legislation which would afford municipalities a means of scaling down both principal and interest
charges on their debts. A similar bill was passed by the
House at the last session of Congress but was not approved
by the Senate at that time. It provided that municipalities
might obtain debt relief through the Federal Courts if two-

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Financial Chronicle

thirds of the creditors agreed that a reduction should be
made.
Prior to the White House conference, Feb. 13, Jesse H.
Jones, Chairman of the Reconstruction Finance Corporation, said that he believed direct RFC lending to municipalities and school districts would be unwise, and added that
it was far more desirable for banks and insurance companies to make such loans directly.
On Feb. 15 United Press advices from Washington to the
New York "Journal of Commerce" said:
Professor Simeon Leland, municipal finance expert of the University of
Chicago, was appointed by Secretary of the Treasury Morgenthau to-day to
work out a program for Federal aid to municipalities.
Mr. Morgenthau conferred with Professor Leland and Jesse H. Jones,
Chairman of the Board of the Reconstruction Finance Corporation, on a
Federal program of municipal aid.
One plan believed under discussion proposed lending money to cities by
the RFC on tax anticipation warrants as collateral. This is expected to
require additional legislation.

We quote in part from a Washington dispatch of Feb. 7
to the New York "Times" describing the President's views
as revealed at the White House press conference:
The adoption of such a policy has been suggested to the railroads at
conferences with officials of the RFC, who have asked Congress for permission to extend 10-year loans so that they would be in a better position to
aid some of the railroads in meeting maturities which are proving a serious
problem.
As to foreign securities held by Americans the President feels that in
Instances where the interest rate runs as high as 8% an unconscionable
service charge is found. The viewpoint is that those who have their money
In such bonds want, most of all, to get back their principal, and that to
do so they should be willing to reduce the high interest rates to around
4% or 5%,thus putting the foreign governments in a better position to make
repayment of the face amount of the securities.
The President feels that if the debt structure can be reorganized by redue,
tag interest rates the payment of the principal would be made snore likely,
fixed charges reduced, and the value of equities increased. There are, it
was indicated, various ways of working out this objective. One would be
by voluntary consent of the creditor, another through the exercise of rights
under the Bankruptcy Act, which paves the way for short receiverships or
reorganizations where a majority of the creditors can compel an agreement on the part of the minority.
The principle of lower interest rates, the White House feels, should be
applied to municipalities. At present it is felt that there are many
municipalities whose credit is absolutely sound, but which, because of
market conditions, are forced to borrow money at around 6%, whereas
they ought to be able to obtain it for about 4%.
The theory in the past, according to the White House viewpoint, is that
the rate of interest varied with the soundness of the security offered, but
that this is not by any means carried out in practice. As an example,
It was cited that in certain rural districts small loans on farms cannot
be obtained at less than 0% or 10% interest on what would appear to
be good security.
Definite Reform Urged.
The same situation, it was felt, was found in the case of many real
estate loans, since farm real estate pays higher interest than a mortgage
on a large building in a city and still the security in the latter instance
may not actually be quite as good.
This disparity, the President was represented as feeling, holds good on
other forms of loans, but the White House also believes that the people are
gradually coming to a better comprehension of the problem, and that a
definite reform should come out of debt reorganization procedure. In such
reorganization the President feels that innterest rates ought to be decreased
as far as possible.
As an illustration of the belief that most interest rates were
too high,
It was pointed out that the Treasury recently had
borrowed on six months
paper at but 0.66%.

Gradual Reopening of Capital Market in United
Definitely in Sight According to Edward B. States
Smith
& Co.
The gradual reopening of the capital market in this
country now appears definitely in sight, in the opinion of
Edward
B. Smith & Co. as expressed in their February issue of
"The Outlook for Equities." The statement continues:
The credit base has been greatly expanded, promising a
more liberal
credit policy on the part of the banks, and this should be
highly
to the heavy industries which have failed to participate in the twobeneficial
phases of the major recovery movement. Thus the current previous
upturn in
general trade activity should be better balanced and more
comprehensive
in scope than its predecessors.
Domestic recovery has undoubtedly been retarded by the
Administration's reform program. However,although perhaps temporarily
obscured
by the air mail controversy and the debate on security exchange
regulation, recent developments, both in and out of Washington, suggest a new
trend toward more conservative thought and action in
Administrative
circles, toward a realization that co-operation with business and financial
Interests is essential in order that private enterprises may be
encouraged
and the Government may be able to withdraw its financial support.
Further strenghtening of the Government's credit position is
anticipated
and recent concern as to its ability to carry out successfully the necessarily
large refunding and new financing operations seems to have been dissipated.
The objective of a balanced budget in 1935 Is beginning to be considered
quite possible of attainment.

William E. Humphrey, Former Federal Trade Commissioner, Dies at Age 71—Had Contested Legality
of Removal by President Roosevelt Last October.
William E. Humphrey, former Federal Trade Commissioner, who was removed from office Oct. 7 1933 by President
Roosevelt, died in Washington (Feb. 14) at the age of 71.
When Mr. Humphrey was removed from office his appoint-




1337

ment still had five years to run and he threatened to sue to
void the removal, declaring it illegal. In December he filed
in the United States Court of Claims a petition demanding
$1,251, his salary from Oct. 7 to Nov. 30. Associated
Press advices of Feb. 14 from Washington outlined his
career as follows:
Mr. Humphrey, who was born near Alamo. Ind., was a member of
Congress from Washington from 1902 until 1917. In the latter year
he sought the Republican nomination for Senator from Washington and
was defeated.
After his service in Congress he practiced law here and in Seattle until
1925, when he was appointed to the Trade Commission by President
Coolidge for a six-year term. He was named again in 1931 by President
Hoover for another six-year term.
Last September, however, he was asked to resign by President Roosevelt, who expressed the desire to name in his place a man whose ideas
were more in keeping with Mr. Roosevelt's. A considerable exchange
of correspondence between them culminated in the ousting by the Chief
Executive.
Mr. Humphrey in contesting the removal asserted that Mr. Roosevelt was acting contrary to law in that no charges of malfeasance or wrongdoing in office were made.

Army Takes Over Air-Mail Operations in Pursuance of
Postmaster-General Farley's Order—Representative Mead Declares Administration Will Return
Business to Private Companies When "Honest"
Contracts Are Obtainable—Walter F. Brown
Testifies Before Senate Investigating Committee—
Defends Manner of Awarding and Extending
Contracts.
Operation of all air-mail routes in the United States was
taken over from private companies by the army at midnight
Feb. 19, and has been carried on in army planes since that
date, despite delays resulting from unusual weather conditions and other causes. This action was followed in pursuance of an order by Postmaster-General Farley,as described
in our issue of Feb. 17, pages 1156-57. No formal steps
have been taken that would indicate the possible return of
the air-mail service to private companies, although Chairman
Mead of the House Post Office Committee said Feb. 21
that the Administration may return the air-mail operations
to private companies "as soon as honest contracts are
obtanable."
Most of the testimony this week before the Senate Committee investigating air and ocean mail contracts was given
by Walter F. Brown, Postmaster-General in the Hoover
Administration, who described in great detail the circumstances surrounding the awarding and renewal of air-mail
contracts to private companies, and who vigorously defended
the policies of the Post Office Department while he was its
head. Senator Black of Alabama, Chairman of the Committee, in a radio speech Feb. 16 had upheld the cancellation
of the domestic air-mail contracts and had charged that
"huge trusts and combines" as well as powerful holding
companies had monopolized the air-mail business and
obtained the benefit of unwarranted Government subsidies.
Mr. Brown, testifying before the Senate mail investigating
committee for the first time Feb. 19, contended that all his
actions as Postmaster-General were strictly in accordance
with a law for which Congress alone was responsible. He
also declared that his investments in securities, although they
included those of three corporations with which the Government had dealings, were entirely personal and had absolutely
no connection with his duties in the Harding, Coolidge and
Hoover Administrations. He readily discussed the conferences of private air-mail operators which had been denounced by Mr. Farley when annulling existing air-mail
contracts, and said "they were called and held for a purpose
entirely legal and proper, to wit: to find if possible some
method under the provisions of the McNary-Watres Act of
aiding the passenger transport operators who had no mail
contracts and whose losses were compelling them to abandon
their passenger operations."
Prior to his appearance before the Committee, Mr. Brown
in a formal statement, attacked the cancellation of the
private contracts as "an irreparable injury to the aeronautical industry."
In his testimony Feb. 20 Mr. Brown again discussed the
method of awarding air-mail contracts and said that he
himself was entirely responsible for these contracts, since
President Hoover had told him to exercise his own judgment
in that connection. He is said to have admitted that he had
granted extensions and route certificates without competitive bidding, and also said that the State Department at
his request had given its support to Pan-American Airway
by interceding in Latin and South America. He renewed
his assertions that his constant endeavor was to build up a
"Class A" mail and passenger air transport service, both

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Financial Chronicle

domestic and foreign, and that he had succeeded in his
attempt.
Testifying Feb. 21, Mr. Brown answered various inquiries
regarding efforts on the part of the Pennsylvania Railroad
and other Philadelphia interests to procure a mail contract
for the Philadelphia Ocean Mail Steamship Co., immediately
prior to the inauguration of President Roosevelt. The
contract was not awarded, Mr. Brown said, because several
Senators had impressed upon him their belief that the transaction was "not in the public interest." During this same
session of the Committee Mr. Brown repeated that any of
his financial transactions while Postmaster-General were
personal and had nothing to do with his official office.
We quote, in part, from a Washington dispatch Feb. 21
to the New York "Times" regarding the remarks of Representative Mead, and the Cabinet meeting on that date:
Meanwhile, the air-mail situation occupied practically the entire threehour session this morning of the full Cabinet, and Postmaster-General
Farley and Attorney-General Cummings remained for another hour to
discuss it with President Roosevelt and Louis McHenry Howe, the President's Secretary.
Despite official reticence surrounding the Cabinet meeting, the first
held on a Wednesday morning during this Administration, it was gathered
that considerable discussion was had on the contract with the Pan American
Airways, which carries the mail to the West Indies, the Panama Canal
Zone and to all the Latin-American countries.
House Action Is Held Up.
Action in the House to-day on the emergency bill to authorize the army
to carry the air mails for a year was delayed when Mr. Mead failed to get
unanimous consent to have it brought up for consideration. Another
attempt will be made to-morrow to have it brought up under a special rule.
Representative Fish's objections stood in the way to-day.
Mr. Mead was in the midst of discussions with House members concerning certain technical points in the emergency bill, which would permit the
Post Office Department to grant short-term contracts for feeder lines -without competitive bidding, when Representative Blanton asked:
"Then, as I understand it, as soon as honest contracts are available the
Government will turn the mails back to private carriers?"
Mr.Mead smiled and nodded. The discussion turned to other matters.
Mr. Fish has made, from the floor of the House, various charges against
the Pan American Airways contract and has demanded its annulment.
In annulling the domestic air-mail contracts, Mr. Farley took pains to
say that nothing would be done for the present about the Pan American
contract. If it were to be annulled the Administration would be faced
with serious complaints from American concerns in business through that
part of the world, and it is considered doubtful that a substitute service
could be organized quickly.
Admiral Standley, Chief of Naval Operations, said to-day that the navy
could fly the Pan American routes if necessary, but added that "I don't
think the navy, any more than the army, is anxious to take over that sort
of thing. But if it is a matter of flying routes over water, it is the navy's
job."

Grazing Lands Withdrawn Under Executive Order
Signed by President Roosevelt.
It was made known on Feb. 7 that President Roosevelt
has signed an Executive order withdrawing 1,200,000
acres of public domain from grazing. Associated Press
accounts from Washington on that date said:
He acted upon the recommendation of Governor Blood of Utah to permit
the conservation of grazing land now about ruined. The acreage affected
lies in western Utah and under the Executive order grazing will be permitted only by special permit, but not until after the land has been restored
to its former condition.

Col. Lindbergh Says His Profits on Air Stocks and
Warrants Totaled $187,838.55—Issues Statement
Showing Transactions in Aviation Securities for
Six Years—Asserts He Never Received a Gift of
Stock Options or Warrants.
Col, Charles A. Lindbergh made public Feb. 18 a statement of his financial transactions in aviation stocks since
he joined the staff of Pan American Airways, Transcontinental & Western Air and Transcontinental Air Transport'
which indicated that his total profits from stocks and warrants in these companies over a period of six years were
$187,838.55. In addition he received $250,000 in cash from
Transcontinental Air Transport in May 1929 as well as an
option to purchase stock in the company. His Pan American
Airways transactions resulted in a profit of $150,884.80. He
reinvested this, together with other money, in the company.
His profits from the sale of Transcontinental & Western
Air stock were $195,633.75. These figures do not include
Col. Lindbergh's deductions for business expenses, purchase
and operation of airplanes and the costs of survey flights.
The statement added that Col. Lindbergh "has never received a gift of stock, stock options or warrants."
The,statement on Col. Lindbergh's aviation investments
follows:
The following is a summary of Col. Lindbergh's financial interest in
Pan American Airways, Transcontinental & Western Air and its predecessor, Transcontinental Air Transport.
Col. Lindbergh's total profits from stock and warrants in these companies, exclusive of reinvestment in those stocks since then, have been
$187,838.55 as set forth below.
These figures do not include any deduction for business expenditures
such as purchase of airplanes, equipment, office maintenance, coat of
survey flights, and many other items over a period of six years...




Feb. 24 1934

Pan American Airways.—In accordance with his employment contract,
executed in January 1929, Col. Lindbergh received warrants to purchase
stock in the company. The total profit from the sale of these warrants
was 3150,884.80, all of which, together with several thousand dollars
additional, he has reinvested in stock of the company, all of which stock
he now holds. Col. Lindbergh's salary from Pan American Airways is
$10,000 a year.
Transcontinental & Western Air.—Col. Lindbergh received a salary of
$7,194.45 in 1931 and $6,000 in 1932 and 1933 from Transcontinental &
Western Air.
Transcontinental Air Transport (predecessor to Transcontinental &
Western Air).—In accordance with the terms of his employment contract
executed in May 1928, Col. Lindbergh received $250,000 in cash and an
option to purchase stock in the company. He reinvested all of the $250,000
in company stock. Ills total profits from the sale of the stock in the
company have been $195,633.75. Col. Lindbergh received a salary from
Transcontinental Air Transport of $10,000 a year until 1931, when its
operations were taken over by Transcontinental & Western Air.
Col. Lindbergh has had no other investments in aviation companies
since 1930. Up to that time he had a total loss of $554.75 from investments
In other aviation companies. He received a salary of $10,000 a year as
technical adviser to the Pennsylvania RR. for three years. Since 1931
he has received a salary of $1 a year.
All of these facts are clearly set forth in detail in Col. Lindbergh's answer
to the questionnaire of the United States Senate Special Committee to
Investigate Foreign and Domestic. Ocean and Air Mail Contracts. This
answer was mailed to the Chairman on Jan. 10. In the reply to this
questionnaire, at the request of the Committee, ho detailed all of his
financial transactions in aviation since the year 1924.
Col. Lindbergh has never received a gift of stock, stock options or
warrants and clearly states so in answer to paragraph 4 of the questionnaire.
In his letter of transmittal Col. Lindbergh offered to send any additional
information requested, and on Jan. 11 he sent the Chairman a wire offering
to appear before the Committee.

Col. Lindbergh Exempt from Army Discipline—Acted
as Civilian in Protesting Cancellation of Air Mail
Contracts, War Officials Declare.
War Department officials said on Feb. 14 that it would
be impossible to subject Col. Charles A. Lindbergh to army
discipline for protesting to President Roosevelt against the
cancellation of all air mail contracts. Associated Press
advices Feb. 14 from Washington, as given in the New
York "Times," continued:
Action had been asked by Arthur W. McMahon, former Senior Lieutenant in the Naval Air Reserve, in a letter addressed to Major-General
Dennis E. Nolan, Commander of the Second Corps Army Area,
Although Col. Lindbergh holds a commission in the Airmy Air Corps
Reserve, officials said he was a civilian and subject to army disciplinary
charges only when on active duty.
Representative Fish to-night challenged a statement that Col. Lindbergh
had been discourteous to President Roosevelt in making public his telegram
of protest before it reached the White House.
The New Yorker said he had learnt that Col. Lindbergh's telegram
was given to a messenger in New York City at 8:15 o'clock Sunday night
and "should have reached the White House not later than 9:30 that same
evening."
"Of course," Mr. Fish added, "Col. Lindbergh was entitled to release
his telegram for Monday morning newspapers. It was not the fault of
Col. Lindbergh if his telegram was not delivered to the President by White
House employees until the next morning.
"The air mail contractors first learnt of the cancellation of their contracts through the press. It is absolutely inconceivable that PostmasterGeneral Farley canceled the air mail contracts without the sanction of
the President."
Mr. Fish hinted that he suspected partiality in the cancellation of contracts. He remarked:
"It may be of interest to the American people to know that the Pan
American Airways, which is the only big air mail contract that was not
canceled, is headed by Whitney." [Cornelius Vincent Whitney, who ran
for Congress in 1932 on the Democratic ticket.]
He added that he had no reason to believe "that the Pan American
is any better operated or more honestly conducted than the Transcontinental & Western Air, Inc., with which Col. Lindbergh has been connected."

Col. Lindbergh's telegram to President Roosevelt protesting against the cancellation of the air mail contracts
was given in our issue of Feb. 17, page 1156.
Loans Advanced to 80,000 to 90,000 American Families
During Final Six Months of 1933 by United States
Building and Loan League—Average Borrowing
$1,850.
A reviving interest in their homes led between 80,000
and 90,000 American families to borrow money from building
and loan associations during the last six months of 1933,
it was reported on Feb. 17 by Philip Lieber, President of
the United States Building and Loan League, Chicago, Ill.
The League is the National organization of the building and
loan business. The average borrowing was $1,850 and
loans were made for three main purposes, Mr. Lieber said.
They were: (1) for modernization and repairs on homes;
(2) for purchase of an existing home, taking advantage of
bargain prices, and (3) for the refinancing of their existing
short-time loans on the long-time basis, which would provide
for eventual repayment and debt-free ownership. Mr.
Lieber further pointed out:
This six-month period witnessed the height of last sununer's rapid business
pickup, the recession of that uptrend and the rise again at the end of the
year. The optimism engendered in July, however, seems to have turned
the first thoughts of these families in many parts of the country either to
improving the value of the home or to strengthening their tenure. These
credit-seekers have found a source of supply for their needs in the old-

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Financial Chronicle

fashioned thrift and home financing institutions in their communities.
the buildings and loan associations.
Under the terms of the Home Owner's Loan Act and the rulings of the
Federal Home Loan Bank Board, there should be absolutely no competition for loans between the relief organization and the permanent savings
institutions designed for home financing. But relief activities have been
given so much attention as to obscure the fact that a much larger number
of families are borrowing on sound security from their community institutions of the savings and co-operative type, than the number of those seeking
Government aid.
Up to Jan. 26, relief loans of all types made by the Home Owners' Loan
Corporation since its first offices were opened in July totaled 63,544. For
the period almost identical with this, the last six months of 1933, the
lending done by co-operative thrift and home financing institutions took
care of the credit needs of 80,000 to 90,000 families. This comparison
indicates that the greater credit need to-day is still that which falls within
the province of the established lending institutions. From now on the
expansion of home-owner credit to recovery dimensions will depend largely
upon the provison of funds for these local institutions whereby they may
make sound loans, providing for orderly repayment of the same, over the
years to come.

Federal Government Regarded as Facing Test in Fall
in Restricting Further Public Expenditures When
Recovery Program Is Well Under Way—Views of
H. H. Heimann of National Association of Credit
Men—Absolves Banks From Charges of Withholding Credit.
The greatest problem facing the American Nation is a test
of its ability to call a halt in due time in connection with the
vast expenditures by Government, Henry H. Heimann,
Executive Manager of the National Association of Credit
Men,temporarily on leave as Director of the Shipping Board
Bureau of the Department of Commerce, declares in his
monthly review of business sent to the Association's 20,000
members on Feb. 17. Mr. Heimann says:
All of the efforts of the Government are centered upon keeping the recovery program going full steam ahead. The Administration is banking
on getting the wheels started and then having a natural momentum carry
it along. As we look back, most all admit that up to this point our situation is immeasurably better, both psychologically and actually. At the
same time nothing would be of more foolnardy than not to realize that there
is being built up at the present time a dole psychology, which will call for a
display of courage early in the fall of an inprecendented character.
We cannot continue repeating these expenditures, and stern hands must
hold firm to the decision that they are at an end when the recovery program
is well under way. There will be a continuous clamor for public expenditures under the Civil Works Administration and Public Works Administration programs, due to the psychology created. Each and every citizen
must constantly keep in mind the need of supporting his Government in
resisting these demands and of influencing his Government to resist them
at the proper time. If our recovery is to be sound. these expenditures
cannot continue indefinitely.

Concerning monetary matters, Mr. Heimann states that
"the recent move in respect to our monetary program has
brought forth one strong, indisuptable fact, namely, the
repatriation of capital. The stabilization of the dollar has
caused funds to flow back to this country. The result of the
monetary venture will undoubtedly be a rapid rise in commodity and security markets, indeed this has already taken
place to a rather sizable degree in the stock market. Second,
export trade will undoubtedly be one of the principal beneficiaries. Third, the uncertainty of further devaluation
builds a psychology which may artificially stimulate prices."
Relative to charges of withholding of credit by banks,
the credit executive declares it is unfair that bankers be
accused of hoarding credit when there are not placed before
them applications carrying credit responsibility. He says:
The facts seem to justify the bankers' contention that those deserving
of credit can secure it. Out of 1,286 applications for credit made directly
to the Federal Reserve banks during the 18 months since they have been
receiving direct application, it is interesting to note that only a little above
1% were really bankable risks. Those whose credit is readily acceptable
do not need funds until further business improvement is hero. Those who
have not the responsibility to have their credit accepted, can not secure
funds in any market.

General Johnson Invites General Public to "Field Day
of Criticism" of NRA—Asks Nation to Participate
in Open Conference at Washington, Feb. 27—
Recovery Administrator, in Radio Address, Says
that Purpose of Meeting Is to See that Neither
Industry, Labor or Consumers Are Exploited.
The American public was invited to participate in a
"field day of criticism" of the National Recovery Administration, in a speech delivered Feb. 20 over two national radio
networks by General Hugh S. Johnson, Recovery Administrator, who asked critics of the NRA to attend the public
hearings scheduled in Washington, Feb. 27, or to send every
possible written criticism of the various codes. The NRA,
he promised, would conduct its public hearing on "any
conceivable cause of complaint," while later code conferences
in March would seek to find the cure for these complaints.
He said that any mistakes and injustices now contained in
codes will be corrected "in a gold fish bowl, under the full
vision of the entire American people."
General Johnson pointed out that the maetings which
will be held at Washington are without precedent, since "no




1339

great governmental administration ever voluntarily exposed
itself to a general public review," and asserted that "neither
here nor in any other country has it been possible to hold a
responsible and representative industrial and economic
congress, not merely of commentators, but of the controlling
units of practically the whole of industry and commerce in
the United States acting in partnership with and under the
ultimate control of government itself."
We quote other significant passages from General Johnson's address as contained in a Washington dispatch, Feb.
20, to the New York "Times":
General Johnson spoke of the chaotic condition of commerce and industry
prior to March 1933 and of the attempt by the Roosevelt administration to
carry on a program of economic planning since that time. The result has
been, he said, that 3,000,000 have been put back to work and $3.000,000.000
has been added to their purchasing power, an achievement that would have
been impossible "if we had sat around like Buddhist lamas contemplating a
lily bud to attain perfection by conjecture before action."
Many Mistakes Are Admitted.
"The important thing is that industry of this Nation is now organized
and ready to act to produce any result that seems practicable and just,
whereas before this great effort industry was just a collection of millions of
separate units," he added.
General Johnson attacked those who charged that the codes were "all
wrong" by admitting that plenty of mistakes had been made in the attempt
to integrate all American industry in six months. For the mistakes he
would answer to the American people, and was not concerned "with the
canned generalized comment of professional critics who have nothing to
assert but second or third-hand comment about matters in which they have
no part, about which they know next to nothing and from which they stand
as far remote in practice as a mail order and correspondence school cowboy
from the sweat and effort of a Wyoming roundup."
The Feb. 27 hearing, said General Johnson, would give "every complainant his day in court," and promised "explanation if there is any explanation
to give, and immediate relief where relief is possible."
, "Any fair-minded critic presenting facts rather than conjecture—any
earnest complainant—any man with a constructive suggestion—should
speak at this critical hour," he continued.
- He asked for "no quarter" from the public at the gathering, and he also
appealed for the code authorities to appear at the March 5 meeting, which
will be opened by President Roosevelt.
Justice to the consumer, the worker and the employer was what the NRA
sought to achieve at the "First Economic Conference of the NRA," he said
in conclusion.

Meetings in Washington Feb. 27 Will Seek to Discover
Consumer Opinion of NRA—General Johnson Says
Conference of Code Authorities and Trade Associations to be Held March 5 Will Consider "Vital
Questions" of Code Administration.
An attempt to learn what the consuming public throughout
the country thinks of the National Recovery Administration
will be made at the series of meetings to be held in Washington on Feb. 27, according to a statement Feb. 17 by General
Hugh S. Johnson, Recovery , Administrator. The NRA
announcement of the meetings was noted in our issue of
Feb. 17, page 1170. In the same issue, on page 1168, the
conferences between code authorities and trade associations
scheduled for March 5 were described. The NRA statement
of Feb. 17 said that these conferences "will exemplify to a
greater degree than anything that has occurred the cardinal
principle of President Roosevelt's industrial recovery program—self-government of industry in partnership with
Government and with public participation." The statement
added:
"Unquestionably the code conference will be the greatest and most truly
representative meeting of American business leadership ever held. Instead
of being self-appointed delegates, those attending will be the elected spokesmen for their industries and trades. In this and in other important respects
the conference will carry out the administration's policy of bringing about
democratic, self-rule in industry, under proper Federal scrutiny."

General Johnson's statement of Feb. 17 follows:
"Out of the experience in the operation of industry and commerce during
the past several months under codes of fair competition, a number of vital
questions have arisen. They confront industry and commerce, employers
and employees. They confront the country. They confront the National
Recovery Administration. These issues must be met, and it seems to me
that it Is in the interest of the industries as well as in the public interest
that the battle for industrial recovery should be directed along lines developed by the combined wisdom of public and industrial agencies.
"Outstanding among these problems are the possibilities of protections
against the ruinous effects of destructive competition on the one hand and
against excessive prices and discouraged efficiencies on the other; the possibilities of increasing employment and public purchasing power; the proper
Protection of small enterprises, and the vast problem of securing effective
impartial administration of the codes under public supervision.
"I have invited into conference with the National Recovery Administration during the week of March 5, the members of the Code Authorities and
other responsibile administrative agencies of industries which are or will be
under codes of fair competition, and I intend to seek their frank co-operation
with the administration in the earnest and courageous consideration of
these problems and in the formulation of plans whereby through combined
public and private effort there may be even better concerted and more
vigorous effort for national industrial recovery.
"As an aid to this end, I have called, to be held dwing the week preceding
these conferences, a series of public meetings at which all interested persons
shall have the opportunity of laying before the administration criticisms
and suggestions with respect to any phase of policy or administration of the
codes of fair competition. In this manner we are seeking public assistance.
"There is no person in this country who is not affected by the policies
incorporated in the codes of fair competition. It is proper that the public
therefore, be given full opportunity to be heard and it will be helpful to
the National Recovery Administration and to Code Authorities if there shall

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Financial Chronicle

be available to them in these conferences next month a complete background of public opinion and public interest."

NRA Creates Review Advisory Board to Observe Effect
of Codes on Small Businesses—Body of Six Members
Will Seek to Safeguard Small Enterprises Against
Monopolistic Practices—Samuel Seabury and Clarence Darrow Among Those Asked to Serve.
The creation of a Review Advisory Board to observe the
effect of National Recovery Administration codes on small
businesses and to safeguard these enterprises against monopolistic practices was announced Feb. 19 by General Hugh S.
Johnson, Recovery Administrator. The board will have six
members. It will hold its initial meeting Feb. 26, one day
before the mass meeting of consumer, labor and industrial
advisory groups. Samuel Seabury of New York was one
of those asked to accept membership, but wired his regrets
to General Johnson. Members announced by the NRA
include Clarence Darrow of Chicago, Samuel C. Henry of
Chicago, Fred P. Mann, Sr. of Devils Lake, N. D., W. W.
Neal of Marion, N. C., and John F. Sinclair of New York.
The NRA Review Advisory Board's function, as described
in the General's invitation, will be:
"To review the operations of codes in connection with Section 3, Clause 2,
of the National Industrial Recovery Act, which reads as follows:
"That such code or codes are not designed to promote monopolies or to
eliminate or oppress small enterprises and will not operate to discriminate
against them and will tend to effectuate the policy of this title; provided
that such code or codes shall not permit monopolies or monopolistic practices;
provided further that where such code or codes affect the services and welfare
of persons engaged in other steps of the economic process, nothing in this
section shall deprive such persons of the right to be heard imior to approval
by the President of such code or codes.
"'The President may as a condition of his approval of any such code
impose such conditions (including requirements for the making of reports
and the keeping of accounts) for the protection of consumers, competitors,
employees and others and in furtherance of the public interest and may
provide such exceptions to and exemptions from the provisions of such code
as the President in his discretion deems necessary to effectuate the policy
herein declared.'"

The Board, it was announced, will be given adequate
legal, research and clerical assistance for investigation of
complaints by small enterprises that they are subjected to
undue hardships by the operation of codes. Its recomme:dations to the Administrator will guide the latter in the modification of general policies as well as in his consideration of
petitions for exceptions or exemptions from codes.
Control of Profit Called NRA Aim—Secretary of Commerce Roper Says Government Will Relinquish
Its Hold as Soon as Possible—Regulation Will
Be Similar to that of Utilities, He Tells Political
Education League.
The object of the NIRA is to extend permanently to all
business and industry a control over profits and operations
like that established in recent years in public utilities, according to Secretary of Commerce Daniel C. Roper.
The New York "Times" of Feb. 17 states that, addressing
more than 1,000 persons at a forum of the League for Political Education, in Town Hall, on Feb. 16, Secretary Roper
said it was not the purpose of the NRA thereby to eliminate
the profit system, but to control it. The "Times" account
went on to say:
He said the emergency relief measures of the Government were not
permanent and could not be permanent without making the situation worse
in years to come or without bankrupting the Government. Those now on
civil work and relief rolls, he said, nmst be reabsorbed by private enterprise thtrough "shorter working hours and probably by annuities or contributory pensions." As soon as circumstances will permit, he said, the
Government will restore to commerce and industry their inherent responsibilities.
Causes of the Depression.
"It is no exaggeration to say," Mr. Roper continued, "if during the
period leading up to 1929 business and industry had thoroughly understood
and fulfilled their duties in respect to our expanding economic mechanism,
we would not have drifted into the tragic economic cataclysm which took
precipitate action in the 1929 stock market.
"In the interest of all concerned, business must better control, harmonize
and balance its profit system, just as we have done in the public utility
field. It is now evident that under the old conditions too much profit was
devoted to building new production machinery and too little was distributed
back to the people to be used as buying power. One of our greatest needs
is evenness in buying power.
"For the first time in the history of this country, leaders in business
and industry acknowledged in the spring of last year their inability,
without the assistance of the Federal Government, to cope with the distressing economic problems facing them and the country.
"The development of the responsibility of all endeavors affecting the
public is naturally looming large in our advanced consideration of the human
element. The responsibility of the so-called public utility, which has
developed in recent years, has been definitely charted in this respect and
controlled through legislation and regulation in the interests of both the
producer and consumer. We are now engaged under the NRA in enlarging
this concept of responsibility in all lines of business.
Duties of Employers.
"It is felt that all employers of labor have a quasi-public responsibility,
and it may be considered in the interest of both business and the public to




Feb. 24 1934

seek permanent controls on business not dissimilar in results to those of
the utilities.
"This does not mean that the Federal Government will need necessarily
to pursue such controls, but that business, properly guided by principles
definitely agreed upon, can and will co-operate in effecting such controls
for themselves.
"The Roosevelt Administration has stated clearly the policy that the
Federal Government should not undertake to do for business in any line
what business can do as well for itself; and that, when the imperative
emergency requirements have been met, the Government will return as
quickly as conditions will permit to the hands of business the inherent
responsibilities of business.
"We must keep in mind and stress at all times the fact that those who
are now receiving Government aid must not regard such assistance as permanent. It is a fundamental responsibility of business to plan concretely to
reabsorb as rapidly as possible those who are now on civil work and relief
rolls, and to assist in working out the policy and plans to deal with the
millions who can never be cared for except through shorter work hours
and probably by annuities or contributory pensions."
Secretary Roper was introduced by George V. Denny Jr., associate
director of the League for Political Education.

NRA Code for Real Estate Brokerage Industry Submitted to Member Boards—Will Come Before
Directors March 1—Home Building Code Has
Preliminary Hearing.
The proposed code for the real estate brokerage industry,
negotiated with NRA by the National Association of Real
Estate Boards through its code committee, has been completed in conference with NRA administrators for submission
to the Association's member boards. Copies in full have
been mailed to all member boards for their comment. The
committee recommends the code to the entire industry, according to an announcement Feb. 18 by the Association,
in which it was also stated:
The board of directors of the Association have been called to meet in
Washington on March I to act upon this code. A meeting of the Executive
Committee of the Association has been called for Feb. 28, preceding the
meeting of the board of directors. The Code Committee will at that time
render its report both on the detailed negotiation of the proposed brokerage
code and also on a proposed code for land development and home building,
filed by the Association through its Code Committee. Preliminary hearings on the latter code were held in Washington, Feb. 7.
The committee consists of J. W. Cree Jr., Pittsburgh, Chairman; Hugh
Potter, Houston, Texas; J. Soule Warterfleld, Chicago, Illinois; J. 0.
Nicnols, Kansas City, Missouri; Harry E. Gilbert, Baltimore, Md.; Frank
M. Ledwith, Brooklyn, N. Y.; Waverly Taylor, Washington, D. C.; and
H. Clifford Bangs, Washington, D. C.
Brokerage Code Practically General Code—Would Require Registration of
Every One in Industry.
The proposed code for real estate brokerage covers all the activities in
which the average real estate brokerage office is engaged, and so would
become to a large degree a general code for the real estate business. It
applies to everyone in the industry as covered by the definition, and would
require registration with the code authority of everyone in the industry.
The code defines the real estate brokerage industry as follows: The
representation of others, for compensation, fee or valuable consideration,
in one or more transactios, as a whole or partial vocation, in any of the
following activities: selling or offering for sale, buying or offering to buy,
exchanging or offering to exchange, or negotiating for the sale, purchase
or exchange of real property; or leasing or offering to lease, renting or
offering to rent, or negotiating for the lease or rental of real property and
the collection of rent; or appraising or offering to appraise the value of
real property, the brokerage of insurance or the negotiating and procuring
ofloans on real property as an adjunct to the business.
Important Section on Trade Practice.
Important to the general public is the section on fair trade practices,
which, it is pointed out, would ifthe code Is adopted and signed, have the
force of Federal law.
Provisions of this section which, if the code is adopted by the Association
and signed by President Roosevelt,should have a tremendous effect toward
eliminating unethical practice in the real estate field are given, in text,
below. All of the provisions cited have for some time been accepted as
part of the Association's voluntary code of ethics, binding every person
entitled to use the designation Realtor. Some of the provisions:
No member of the industry shall act in the dual capacity of broker and
undisclosed principal in any transaction.
No member of the industry shall make any specific guarantee as to
future profits from regale of real property or authorize anyone so to do.
No member of the industry shall accept, give, or charge an undisclosed
commission, rebate, or direct profit on expenditures made for a principal.
No member of the industry shall publish advertising (whether printed,
radio, display, or of any other nature), which is misleading or inaccurate
in any material particular, or in any way intentionally misrepresenting
any properties, terms,values,policies, or services of the business conducted.
No member of the industry shall knowingly withhold from or insert in
any quotation or invoice any statement that makes it inaccurate in any
material particular.
No member of the industry shall accept employment or compensation for
appraising real property contingent upon the reporting of a predetermined
or specified valuation.
No member ofthe industry shall issue an appraisal report on real property,
in which the member has any interest, unless such interest is disclosed in
the report.
No member of the industry shall issue an appraisal report on value of
land only or improvements only, without endorsing thereon a statement
to the effect that the valuation shall not be added to any other valuation
of improvements only or land only, as the case may be, in determining the
value of both together unless there shall be also a separate appraisal of the
whole property in which the valuations ofland and improvements are reconciled.
No member of the industry shall give, permit to be given, or indirectly
offer to give, anything of value for the purpose of influencing or rewarding
the action of any employee, agent or representative of another in realtion
to the business of the employer of such employee, the principal of such
agent or the represented party, without the knowledge of such employer,
principal or party. This rule shall not be construed to prohibit free and
general distribution of articles commonly used for advertising except so

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Financial Chronicle

far as such articles are actually used for commercial bribery as herein defined.
No member of the industry shall seek prospects or purchasers for real
property by offering so-called free lots or through lotteries.
No member of the industry shall offer real property for sale or for lease
without the knowledge and consent of the owner or his authorized agent,
or on any terms other than those authorized by the owner or his authorized
agent.
No member of the industry shall use any trade name or insignia of membership in any organization of this industry unless entitled to use it.
State License Laws Not Superseded.
It is provided that the proposed code shall not supersede or mofify the
stands, requirements, or regulations established by the real estate licensing
laws ofany State for the real estate brokerage business, where such standards
requirements, or regulations are more stringent than the provisions of the
code.
Administration.
Administration of the proposed code as negotiated would be through a
Code Authority of 11 members of the industry, truly representative of its
various interests, 8 of whom are to be elected by the National Association
of Real Estate Boards, and 3 other members of the industry (not members
of the National Association of Real Estate Boards), selected by a fair
method of selection approved by the Administrator. The Code Authority
shall make investigations as to the functioning and observance of the
provisions of this code at its own instance or upon the complaint of any
persons affected and report the same to the Administrator.
In addition to the membership of the Code Authority as above provided,
there may be one and not more than three members, without vote, to be
appointed by the Administrator for such 6 or 12 months' term from date
of appointment as he shall specify, who shall serve without compensation
by the industry.
Subject to the right of the Administrator to disapprove or modify its
action, the Code Authority has power to insure the execution of the code,
to adopt rules and procedure for its enforcement.
Local Committees Provided.
The code would give the Code Authority the right to appoint local, State
or regional committees or designate local real estate boards or State associations as such committees, with the approval of the Administrator
and which he shall find to be truly representative of the industry in such
localities. States or regions. Such committees would have the right to
prescribe rules for fair trade practices for their respective locality,' State
or region under the direction of the Code Authority, and with the approval
of the Administrator, provided, however, such rules for fair trade practices
be in no event less stringent than those set out in the code.
Would Give Implement for Industrial Planning.
A provision of great potential public importance is that which empowers
the Code Authority to obtain information and reports from members of
the industry as required for tne administration of the code and a further
provision which empowers the Code Authority after local investigations
and hearings,and upon local initiative as it affects any region, to recommend
to the Administrator measures for industrial planning and for the general
welfare of the industry.

Railroad Rates Reduced for Code Conferences at
Washington.
Railroads leading to Washington are co-operating with the
National Recovery Administration by announcing a onethird reduction in rates for persons coming to the Capital for
the national conference of Code Authorities and Code Committees March 5 to 8, and the preliminary public meetings
on NRA affairs starting February 27. The NRA. on Feb.
19, stated:
The reduction will apply to arrivals in Washington Feb. 25 and 26,
and March 3 and 4. The usual baggage allowances will be given, and
stop-overs permitted on the return trip. The trip home must be completed
by March 10.
The Feb. 25 and 26 dates will accommodate those coming for the series
of public meetings at which perhaps 2,000 spokesmen for organized buyers
will dissect NRA codes from the standpoint of the con.sumers.
The March 3 and 4 tickets will lighten the transportation expenses of the
several thousand industrial and trade leaders coming for the general code
conference, which President Roosevelt will personally open with an address
on the forenoon of Monday, March 5.
All indications are that Washington late this month and early in March
will witness the greatest gathering of business leaders in history—a gathering
that will bring into full flower the self-government principle which is the
keystone of the Federal administration's industrial recovery program.

Employers Operating Under Approved NRA Codes
Required to Display Labor Provisions in Their
Establishments.
Regulations requiring employers operating under approved
codes to post the labor provisions of those codes conspicuously in their establishments were issued on Feb. 14 by
National Recovery Administrator Hugh S. Johnson. In
indicating this the Administration said:
Under the regulations, issued in accordance with a recent Presidential
Executive Order, official copies of the hour and wage provisions of the
code to which he is subject, will be furnished to each employer. These
official copies will include detailed directions for the proper filing of complaints of violations of the provisions.
"Such official copies," the regulations prescribe, "with such directions
shall be kept conspicuously posted at all times by such person in each
shop,establishment or separate unit of his enterprise to the extent necessary
to make them freely accessible to all employees."
Posting of the provisions is designed not only to acquaint employees with
their rights under codes, but also to protect employers from complaints
made in ignorance of code provisions and to protect faithfully-complying
employers from chiselling competitors.
The Executive Order,signed by President Roosevelt on Feb.8 points out
that "Section 10 (a) of the National Industrial Recovery Act prescribe
a fine not to exceed $500 or imprisonment not to exceed 6 months, or both,
for the violation of any rule or regulation prescribed under the authority
of and pursuant to the provisions of this order."
The regulations provide for registration within 30 days by employers
with their code authorities of the number and locations of their shops,




1341

establishments or separate units. Thereafter the code authorities will
furnish the required number of official copies (prepared by NRA) of labor
provisions for posting.
In cases where an employer is permitted by a modification, exemption
or exception to pay lower wages or work employees longer hours than
prescribed by the code for his industry or trade, certified copies of the
modification, exemption or exception will be furnished for posting with
the official copies of the code provisions.

The texts of the Presidential Executive Order and of
General Johnson's regulations follow:
EXECUTIVE ORDER.
Delegation of Authority to Administrator for Industrial Recovery to Prescribe
Rules and Regulations, &c.
By virtue of the authority vested in me under the provisions of Article I
of the NIRA of June 16 1933 (ch.90.48 Stat. 195), and in order to effectuate
the purposes ofsaid title. I hereby authorize the Administrator for Industrial
Recovery to prescribe rules and regulations requiring persons subject to
codes of fair competition approved under said title to post or display the
terms and provisions of said codes, or otherwise to bring such terms and
provisions to the attention of any and all interested persons, including employees, in the manner and to the extent required in such rules and regulations, and I hereby further authorize the Administrator to take such other
steps as he,may deem advisable to effectuate any rules and regulations hereunder prescribed by him.
All persons are hereby informed that Section 10(a) of the NIRA prescribes
a fine not to exceed five hundred dollars ($500) or imprisonment not to
exceed six (6) months, or both, for the violation of any rule or regulation
prescribed under the authority of and pursuant to the provisions of this
order.
FRANKLIN D. ROOSVELT.
The White House.
Feb. 8 1934.
Rules and Regulations Governing the Posting of Labor Provisions of Codes
of Fair Competition.
By virtue of the authority vested in me as Administrator for Industrial
Recovery, I hereby prescribe the following rules and regulations which I
deem necessary and advisable to carry out the purposes and intent of the
Executive Order of the President dated Feb. 8 1934 with reference to
the posting and display of the terms and provisions of Codes of Fair Competition:
1. Every person subject to any Code of Fair Competition shall, within
thirty (30) days from the date hereof, the effective date of such code, or
the date upon which he becomes subject thereto, whichever is latest, unless
he has previously so registered, register the full name of his enterprise
together with a statement of the number ofshops,establishments or separate
units thereof and their location, with the Code Authority of the Trade or
Industry of which he is a member. Every such person who may open for
business an additional shop, establishment or separate unit after such
registration shall, within thirty (30) days after such opening, register the
same in like manner.
2. Upon registration, or as soon thereafter as is possible, each such person
will be furnished with official copies of provisions of any Code of Fair
Competition to which he is subject relating to hours of labor, rates of pay
and other conditions of employment. Such official copies ofsuch provisions
will contain directions for filing complaints of violations of such provisions.
Such official copies, with such directions,shall be kept conspicuously posted
at all times by such person in each shop, establishment or separate unit of
his enterprise to the extent necessary to make them freely accessible to all
employees.
3. Whenever any modification of or exemption or exception from any Code
of Fair Competition permits any such person to pay lower wages or work
his employees longer hours or establish conditions of employment less
favorable to his employees than those prescribed by the provisions contained in such official copies of Code provisions, the Code Authority, on the
request of such person, will furnish him with certified copies of such modification, exemption or exception in sufficient number for posting alongside
of such official copies of Code provisions.
4. No person subject to a Code of Fair Competition shall display or
furnish any incorrect copies of such provisions, directions, modifications,
exemptions or exceptions.
5. A person subject to more than one code, when official copies have been
so furnished, shall so post such copies of such provisions of every code to
which he is subject.
6. Nothing in these rules and regulations shall relieve anyone from
complying with any provisions of any codes relating to posting, displaying
or furnishing copies of codes or of provisions of codes.
HUGH S. JOHNSON,
Administi ator for Industrial Recovery.
Washingtcn, D. C.
Feb. 12 1034.

Restaurant Code of Fair Competition Approved by
President Roosevelt—Sets Maximum 54-hour Week
for Men and 49 Hours for Women—All Tips to Be
Retained by Employees—Wage Minimum $9.50
Weekly.
A code of fair competition for the restaurant industry.
effective Feb. 26, was approved by President Roosevelt
Feb. 16. The code provides for a basic 6-day work-week
of 54 hours for male employees and of 49 hours for women.
It exempts from these provisions, however, guards, watchmen, maintenance employees and executives. The basic
minimum wages range from $9.50 weekly in cities of less
than 10,000 to $10.50 a week in cities of more than 500,000
for service employees. For non-service employees the
minimum ranges from $12 to $15 a week. Other leading
provisions of the code follow, as given in Washington advices
Feb. 16 to the New York "Times":
A differential of 10% below these rates is allowed in Kansas and Missouri
and 15% in Virginia, West Virginia, Maryland, North Carolina, South
Carolina, Georgia, Florida, Kentucky. Tennessee. Alabama, Mississippi,
Arkansas, Louisiana, Oklahoma, New Mexico and Texas.
Meals may be included as part of wages only by mutual agreement
and deductions for meals are limited to $3 a week. Deductions for lodging,
subject to approval of the Code Authority, are limited to $2.50 a week.
Deduction for payment for uniforms is limited to a maximum of$5 a uniform
except in some cases, where $20 may be allowed. All tips will be retained

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Financial Chronicle

by employees who will not have to disclose to employers the amounts
thus received.
A sanitation committee in the Code Authority will co-operate with
the Public Health Service and a committee appointed by the Conference
ol State and Provincial Health Authorities of North America. These
groups will formulate minimum standards of cleanliness, maintenance
of equipment and other sanitary safeguards.
It is estimated that the restaurant industry comprises at least 450,000
units, now employing nearly 1,500.000 persons and with annaul payrolls
of nearly $1.200,000,000.

Laundry Code Conditionally Approved by President
for 90-day Period—Minimum Wages Range from
14 Cents to 30 Cents an Hour—Work Hours Restricted to 40 Weekly—NRA Will Later Report
on Adequacy of Wages.
A code of fair competition for the laundry industry was
approved by President Roosevelt Feb. 16, with the stipulation that approval was only for a period of 90 days and
was subject to a further report on wages as well as to certain
other stipulations. The code permits the establishment of
minimum wholesale and retail prices, subject to approval
by a special board. Before it becomes effective in any given
area that area must comply with certain conditions, and
pending this time employers may sign petitions for approval
of the code and be permitted to continue to display the
Blue Eagle. The conditions under which code approval
will be granted follow:
Boundaries of trade areas must be established by the National Code
Authority. Control boards must be created for each area, and they must
establish uniform service names for various types of services and, also
establish after full public hearing "fair and reasonable minimum wholesale
and retail prima"for each;the control boards must obtain petitions declaring
the laundry industry to be experiencing a condition of emergency in the
respective areas, with signatures from at least 70% of the establishments.

Minimum wage schedule stipulated in the code range
from 30 cents an hour in cities of more than 600,000 population in the Northeast and Far West to 14 cents in various
other States, chiefly in the South. General Hugh S. Johnson, Recovery Administrator, said Feb. 16 that the 14-cent
rate is applicable to establishments employing less than 9%
of the total 250,000 laundry workers. Office employees
will be paid a minimum of $12 to $14 weekly, according
to.the population of their communities. Work hours were
fixed at 40 weekly, and it was estimated that previously
they had averaged 45.
General Johnson, in a letter to the President, said that he
did not consider that the minimum rate of 14 cents an hour
represented a "satisfactory level," but added that its application would result in "an increase in operating payroll of
46% in plants affected."
"Inasmuch as practically all the laundries in this section were operating
at losses, even prior to these payroll increases, it was not felt that any
higher rate was at present economically feasible," he said. He added
that the laundry code protected the public, because price increases would
have to be discussed at public hearings in the communities affected.

Senator Reed Declares Prosperity Is Delayed by "New
Deal"—Promise of Sound Money in Democratic
Platform Not Fulfilled.
In a radio address broadcast from Washington on Feb. 17
Senator David A. Reed of Pennsylvania held that the
Administration at Washington is delaying the return of
prosperity, "and not helping it by these policies of the
'New Deal'." Senator Reed (Republican) in his address
took up point after point of the Democratic platform, which
he said (we quote the Associated Press account) had been
violated by the Administration and ended his summary
with the declaration that for the young people of America
"a continuance of the present course means that we will
leave to them a burden of debt thati,will absorb most of
their earnings and will weigh heavily against their ambition
and their welfare."
Senator Reed's address as given in part in a Washington
dispatch Feb. 17 to the New York "Herald Tribune" follows
It seems to me that it Is high time that the works of this Democratic
Administration should be subjected to candid criticism. For the last
year very little criticism of the Administration has been voiced, since
we all have felt that the Democrats should be given a chance to develop
their policies and that, particularly In this business slump, nothing should
be done to impede their efforts to bring about recovery. Meanwhile, the
Nation has been drenched with a torrent of speeches and broadcasts
and newspaper and magazine articles all praising the Administration and
its policies.
The Democratic Party has now been in power for about a year, and
I can see no reason why some of this inspired Administration oratory
should not be answered.
Sixteen months ago, by a huge majority, this Administration was
elected. Its platform held out many fair promises which evidently made
a strong appeal to the American people. As if to emphasize the solemnity
of these promises, the platform said:
"We believe that a party platform is a covenant with the people to be
faithfully kept by the party when entrusted with power, and that the
people are entitled to know in plain words the terms of the contract to
which they are asked to subscribe."
Let us see what were some of the promises thus solemnly given. Among
others, we see these promises:




Feb. 24 1934

"We advocate an immediate and drastic reduction of governmental
expenditures by abolishing useless commissions and offices, consolidating
departments and bureaus and eliminating extravagance, to accomplish
a saving of not less than 25% in the cost of Federal Government. . . .
We favor maintenance of the National credit by a Federal budget annually
balanced on the basis of accurate executive estimates within revenues.
. . . We advocate a sound currency to be preserved at all hazards.
. . . We advocate the strengthening and impartial enforcement
of the Anti-Trust laws. . . . The removal of Government from all
fields of private enterprise, except where necessary to develop public works
and natural resources in the common interest. . . . We advocate
the full measure of justice and generosity for all war veterans who have
suffered disability or disease caused by service. . . . We advocate
the maintenance of good faith and good will in financial obligations.
. . . We oppose the cancellation of debts owing to the United States
by foreign nations. . . . We condemn the extravagance of the Farm
Board."
These were the solemn promises on which the Democratic Party secured
enough votes to give it control of the Government of the United States.
Let us see how these solemn promises have been kept.
Sound Currency Promised.
An immediate and drastic reduction of governmental expenditures
and a cut of 25% in the cost of the Federal Government were promised,
yet thus far in the present fiscal year Mr. Roosevelt's Administration has
spent $740,000,000 more than Mr. Hoover's Administration spent in the
same period of the last fiscal year. Instead of cutting expenses 25%.
they have increased them nearly 25%. A balanced budget was promised,
yet in his first budget message to Congress, deliverrd last month, the
President proposes expenditures which he admits will make our deficit
for this year $7,309,000,000, which is the most dreadful peacetime deficit
in the history of any nation in the world.
A sound currency to be preserved at all hazards was promised, yet
the history of the last nine months shows that the Administration has
advocated legislation to authorize every variety of unsound money known
In history, excepting possibly the seashells that are used for money in the
islands of the South Pacific.
The strengthening of the Anti-Trust laws was promised, yet the Administration has forced through provisions in the National Recovery Act
which by implication repeal these laws. And we see to-day the great
corporations of the country gathered together in agreements to fix prices
for their products, with the result that the cost of living of everyone of
us has been greatly increased and the difficulties of the small business men
multiplied many times.
The platform further promised the removal of government from all
fields of private enterprise, yet every newspaper we pick up tells of some
new attempt by bureau officials in Washington to regulate the details of
our daily life. Never in our history has government control of private
enterprise been so bureaucratic and despotic.
Charges Cruelty to Veterans.
The next promise was justice and generosity for the service-connected
disabilities of war veterans, yet by Presidential order the compensation of
veterans disabled in service has been cruelly cut. I. myself, have a friend
totally paralyzed and speechless, whose compensation was cut from $150
per month to $15 per month.
They promised the maintenance of good faith and good will in financial
obligations. Last April they issued bonds in which they promised to repay money of the same standard as that which they borrowed. In the
following month of May they forced through an Act of Congress declaring that promise to be void and against public policy. The good faith
and good will of that obligation disappeared within four or five weeks of
the time it was made.
Their platform stated opposition to cancellation of tho war debts,
yet last June the President announced that he saw no default when Great
Britain paid us less than 10% of the amount then due. To say that that
is not favoring cancellation is only to make a play on words.
And finally they condemn the extravagance of the Farm Board, but
now they have replaced it with a bureaucratic system that pays out the
money of our taxpayers as a bounty for the destruction of crops, the plowing under of cotton and the waste ofslaughtered hogs,all of which is financed
by a tax on the daily necessaries of life, levied not by Congress but by a
single bureaucrat in the Department of Agriculture, who taxes what
he pleases, when he pleases, and at what rate he pleases, and in the name
of agricultural relief has now gone so far as to impose a tax on paper napkins and paper bags.
Platform and Policies.
In view of this record, is it fair to assume that all of the Americans who
voted the Democratic ticket are in favor of the policies of the Now Deal?
I do not think that it is. Those voters relied upon the promises of the
Democratic platform. They trusted the solemn assurances that were
given them in these planks of the platform. Any one who favors these
present policies could not have approved that platform.
I have now run hastily over the list of broken promises, for which this
Administration must some day account to the American people, and in the
brief time remaining to me I want to consider the effect of this bad faith
upon the condition of the Nation, and to outline briefly the alternative
course that I believe the Nation ought to be helped to follow.
I know that some of you who are listening are saying now that I criticize
but I do not offer an alternative. And now I want to offer the alternative
that in my judgment should be adopted instead of this patchwork of bureaucracy that we see. This depression was world-wide. It bore harder on
many other countries than it did on the United States, but in our misery
we forgot that other lands were suffering and we thought only of our own
troubles. But since it was world-wide, we can look about us and see what
other countries are doing to cope with these same difficulties. When we
doIthat we find that Canada and the countries of western Europe have come
further in recovery than we have, and they have done it not by casting
to the winds the experleince of the past but by adhering to the methods that
have been tried before and have been effective to restore industry and
commerce.
wol
iso Instead of spending madly, these countries have economized and have
really balanced their budgets. They have kept their internal governmental
credit high. They have kept faith with their own citizens, and to-day they
have more nearly returned to normal than we have. Recovery is under
way all overjthe world and I believe that if Americans are given a chance to
work out their own difficulties, free from excessive Governmental Interference, they will show the same ability to come back that other Americans
showed in past depressions.
Understand me clearly, I am not objecting to the appropriations for the
relief of human suffering. They are relatively small compared to the
extravagances that have no relation to relief of distress.
America is sound. Prosperity will come again. My point is that use
are delaying it and not helping it by these policies of the New Deal.

Banks for Business and Lifting
Of Restrictions.
Since the publication in our issue of Feb. 17 (page 1176),
with regard to the banking situation in the various States,
the fol'owing further action is recorded:
Reopening of Closed

FLORIDA.

With reference to the affairs of the People's Bank for Savings of St. Augustine, Fla., the following was contained in
&dispatch from that city on Feb. 8 to the "Florida TimesUnion":
Plans for reorganization of the People's Bank for Savings are being worked
out, an officer of that bank stated to-day (Feb. 8) and it was added that
complete details will be announced later. Depositors of the bank are
being asked to give their full co-operation to the plans that are being formulated, which will result in great good to the community, the spokesman
for the bank said.
The People's Bank for Savings is a State bank, and the assets have been
frozen for almost four years. Depositors signed an agreement on the
freezing of the deposits, which expires in September 1934.

That the First National Bank at Orlando, Orlando, Fla.,
a newly organized institution which succeeds the closed
First National Bank of that place, was to open on Feb. 16
and that simultaneously a dividend of 30% was to be paid
to the depositors of the old institution, was indicated in
advices from Orlando on Feb. 15 to the "Florida TimesUnion," which furthermore said in part:
Depositors in the closed bank are instructed to call at the bank in the
morning and draw their 30% dividend, which will gross $201,000. Payment
of the dividend and the clearance of certain obligations of the closed bank
were made possible through a loan of $525,000 by the RFC to the conservator, W. R. O'Neal. . .
The new bank succeeds the closed bank but has no liability connection
with the liquidation of any previously existing institution.
Linton Allen will be the Executive Vice-President and Cashier, while
W. T. Bland will be Chairman of the Board and F. L. Morse is to be
President.
Capital stock of the bank is $200,000 with a paid-in surplus of $40,000.
The RFC purchased $100,000 of the stock while the other $100,000 was
subscribed by local business men.
Mr. Allen issued a statement saying:
"The new First National Bank at Orlando Is owned and operated by
local men to serve Central Florida. It is not affiliated with any other
bank and has no liabilities in connection with the liquidation of any previously existing bank." . . .
ILLINOIS.

A 40% payment, or $73,820, has been made to the depositors of the closed Belmont-Sheffield Trust .Sz Savings
Bank, Chicago, Ill., according to an announcement on Feb.
21 by Edward J. Barrett, the State Auditor for Illinois.
The Chicago "News" of Feb. 21, in reporting the matter,
went on to say in part:
The distribution was made possible through a loan from the Federal
Deposit Liquidation Corporation, an adjunct of the RFC.
William L. O'Connell, receiver for the bank, said that the loan had been
arranged for several weeks ago, and that the checks were mailed yesterday.

That a charter has been issued by the Comptroller of the
Currency to the First National Bank in DeKalb, Ill., with
an arrangement whereby the capital stock consists of $75,000
preferred and $50,000 common stock, was reported in an
Associated Press dispatch from Washington on Feb. 21,
which furthermore said:
Paul A. Nehring was listed as President and F. 0. Crego as Cashier.
The new institution will succeed the First National Bank of DeKalb.

The reopening on Feb. 21 of the Medora State Bank of
Medora, Ill., is indicated in the following taken from the
Chicago "News" of Feb. 20:
The Medora State Bank of Medora, Ill., has been notified by State
Auditor Edward J. Barrett that it could reopen on an unrestricted basis
Feb. 21. The bank was closed July 25 1933.
LOUISIANA.

The following with reference to the affairs of the closed
Bank of Loreauville, Loreauville, La., was contained in the
following dispatch from New Iberia, La., on Feb. 16,
appearing in the New Orleans "Times-Picayune":
Leon J. Minvielle, President of the People's National Bank of New
Iberia, has been selected by State Bank Commissioner J. S. Brock to serve
as liquidator for the Bank of Loreauville, which closed its doors several
months ago.
It was pointed out that the bank had considerable assets and depositors
are expected to be satisfied within a year.
E. A. Gesser, who was the Cashier of the bank,will assist the liquidator.
MASSACHUSETTS.

Concerning the affairs of the Belmont Trust Co. of
Belmont, Mass., the Boston "Herald" of Feb. 21 had the
following to say:
Distribution of approximately $620,000 to the depositors of the defunct
Belmont Trust Co. will probably be made shortly under the provisions of a
plan or reorganization approved by the Massachusetts State Banking
Department and the Supreme Judicial Court.
This plan provides for the payment in full of all deposits of $25 or less in
both the savings and the commercial departments, a procedure that will
provide full payment for approximately 7,000 of the 11,116 depositors. The
remaining savings department depositors will receive 50% of their deposit
and the remaining commercial department depositors will receive 25% of
their deposits.
This plan will be effective only upon condition that depositors with
deposits in excess of $25 whose total deposits aggregate $976,000 assent to




1343

Financial Chronicle

Volume 138

the plan in writing and that stockholders pay a minimum of $60,000 under
the compromise provisions.
The plan calls for the transfer of a substantial portion of bank's assets to
the Trapelo Road Mortgage Loan Co.. a corporation controlled by the trust
company.
MICHIGAN.

A dispatch by the United Press from Washington, D. C.,
on Feb. 20 stated that the Comptroller of the Currency had
issued a charter to the First National Bank of Marshall,
Mich., which succeeds the First National Bank of that place,
which had frozen deposits of $768,000. The reorganization
was effected with a 50% waiver by depositors of the old
bank, it was stated.
NEVADA.

The right•of District Judge Clark J. Guild to appoint receivers for seven Nevada State banks, all of which were
members of the defunct George Wingfield banking group,
was upheld in a unanimous decision of the Nevada Supreme
Court on Feb. 9, according to advices by the Associated
Press from Carson City, Nev., on that date, which went
on to say:
Institutions affected by the ruling are the Bank of Nevada Savings &
Trust Co., the United Nevada Bank, and the Riverside Bank, all of Reno;
the Bank of Sparks, the Carson Valley Bank at Carson City, the Virginia
City Bank and the Tonopah Banking Corp.
NEW JERSEY.

Stockholders of the Jefferson Trust Co. of Hoboken, N.J.,
on Feb. 16 approved a plan for the reorganization and rehabilitation of the institution, but three points yet remain
to be attained before the institution ceases to operate under
the Altman Act, according to the "Jersey Observer'' of
Feb. 17, which went on to say:
Bank officials explained that before the reorganization plan becomes
effective, some arrangement must be made whereby the Reconstruction
Finance Corporation will not make any claims on new deposits to cover
a million-dollar loan obtained by the Jefferson last year.
In addition,approval of the plan must be obtained from the State Banking
Commissioner and the institution must apply for and receive, as provided
for by recent legislation, a Federal deposit insurance certificate.
The current plan, the third offered for reorganization of the bank since
the institution went under the Altman Act early in 1933, provides for the
transfer of claims by depositors at the close of business Feb. 22 1933 into
preferred stock to be redeemable from time to time by the company at the
face value of the deposit.
First of the three plans evolved was rejected by the RFC. The second
was found by counsel for the bank to be illegal, and the stockholders'
meeting was called off at the last minute.
In a notice to stockholders concerning this third plan, it was outlined
as follows:
"Each share of the preferred stock will be redeemable at $50 Per share,
and is to receive 6% cumulative dividends on the par value thereof. The
preferred stock will have no voting powers, but will have the privilege of
being converted into common stock on the basis of two and a half shares
at $50 per share for each share of common stock.
"No distribution of dividends or other property is to be made on account
of common stock until the preferred stock shall have been fully retired or
converted and all cumulative dividends paid thereon. In the event of
dissolution or any liquidation, whether voluntary or involuntary, the holders
of the preferred stock shall be entitled to receive $50 per share plus any
accumulated dividends less any amount paid on account thereof."
Depositors of the bank who signed consents to the original plan at the
same time entered into an agreement consenting to any alterations in the
plan which might be necessary for the reorganization.
The plan in effect gives to the depositors a $10 preferred share of stock
for every $50 deposit he had in the bank. There is no mention in the plan
of any intention to give the depositor any part of his deposit in cash on the
consummation of the plan.
The plan also includes provision for reduction of the present capital
stock of 8,000 shares of common stock at $100 par value, to 8,000 shares
of $25 par value.
Charles Focht, President of the Jefferson Trust Co., set forth in his
reasons for adoption of the plan that present stockholders had everything
togain and nothing to lose by such action. If the plan were not accepted,
he pointed out, the Commissioner of Banking and Insurance would be
compelled to liquidate the bank, in which event the present stock would
have been worthless or of little value.

The Liberty National Bank in Guttenberg, Guttenberg,
N. J., an institution which succeeds the Liberty National
Bank of Guttenberg, which had been in the hands of a conservator, was to open for business yesterday, Feb. 23, according to a dispatch from Washington, D. C., by the Associated Press on Feb. 20. The officers include Daniel Hermann, President, and E. F. Merlehan, Cashier, the dispatch
stated.
Associated Press advices from Washington, D. C., on
Feb. 22 stated that Representative Kenney of New Jersey
was advised on that date, that the RFC had approved a
loan for the Carlstadt(N. J.) National Bank and that efforts
were being made to open the institution the following day
(Feb. 23).
NEW YORK STATE.

The fo'dowing with reference to the affairs of the closed
First National Bank of Hempstead, L. I., was contained in
a dispatch to the Brooklyn "Eagle" on Feb. 14:
Edwin V. Hellawell of Garden City, to-day (Feb. 14) was appointed receiver of the First National Bank of Hempstead.
In a telegram from Washington received by George Estabrook, former
conservator, Hellawell's appointment was to take effect to-day.
Hellawell is an attorney and ran for councilman on the Democratic
ticket in the last election.

1344

Estabrook said that, while his appointment as a receiver undoubtedly
Placed the bank in receivership, he still held out hopes of its eventual
reopening.
Hellawell said that it was a question as to whether or not a receiver
could reopen a bank, and whether or not a bank already in receivership
could rehabilitate.
NORTH CAROLINA.
Guerney P. Hood, State Bank Commissioner for North
Carolina, announced on Feb. 16 that the Bank of Mount
Airy, with $661,064.79 in deposits, and the Bank of Faison,
with deposits of $35,573.48. will be immediately liquidated.
The Raleigh "News & Observer" of Feb. 17, from which
this is learnt, furthermore said:
Both institutions had been operating under restrictions since last March.
The Mount Airy bank was capitalized at $100,000 and had $40,000
borrowed money. The Faison bank was capitalized at $25,000 and had
E12,832.74 in borrowed money.
OHIO.
Another step looking towards the reopening of the People's
Bank & Savings Co. of Cincinnati, Ohio (now being operated
by a conservator) was taken on Feb. 13, when the institution, through its attorney, Gilbert Bettman,filed an applicaUm.in Common Pleas Court, asking for authority to resume
business. Judge John H. Druffel fixed the date for the
hearing as Feb. 27. The Cincinnati "Enquirer" of Feb. 14,
from which the foregoing is learnt, continuing, said:
The application sets forth the bank's plan qf reorganization, and the
fact that it has been approved by 93% of the depositors, representing
95% of all deposits. It also sets forth the commitment to purchase the
bank's debentures by the RFC, in the amount of $325,000, and the reorganized bank's eligibility to the benefits of the FDIC,on individual deposits
up to $2,500.
A review of steps taken to enable the bank to become a member of
the Federal Reserve System upon reopening, also is set forth in the application.
An order also is sought directing all depositors and creditors to show
cause why the plan of organization shall not be approved, or it will be
found by the Court as fair and equitable and binding upon all depositors,
and creditors, and the Court will authorize the bank to resume business.
At the request of the board of directors of the bank, coincident with
filing of the application, the Superintendent of Banks for Ohio has taken
direct supervision of the bank. This attorney Bettman explained, was
necessary in order to meet technical requirements, in connection with the
reorganization, and as a means of making the plan of organization binding
upon all depositors and creditors.
However, it in no way will interfere with the continuance of the ordinary
operations of the bank, as heretofore under the conservatorship, Brettman
explained.
Following the hearing Feb. 27, final approval of the various Federal
Departments will be applied for at once, and it is expected that these will
be secured within a minimum of time, insuring the reopening of the bank
in the very near future. However, he said, it is impossible at this time
to predict any date for such action.
Ira J. Fulton, State Superintendent of Banks for Ohio,
on Feb. 13 licensed the Bank of North Lewisburg County,
North Lewisburg, Champaign County, Ohio, to reopen on
an unrestricted basis, according to a dispatch by the Associated Press from Columbus, Ohio. The bank has been
granted incorporation papers, it was said.
OREGON.
We learn from the Portland "Oregonian" of Feb. 14 that
the First National Bank in Clatskanie, Clatskanie, Ore.,
was to open for business on that date. The new institution
represents a reorganization of the First National Bank of
Clatskanie, which has been operated on a restricted basis
since March 15 last, under the conservatorship of H. B.
Hager. The institution, it was said, would automatically
become a member of the temporary deposit insurance fund,
insuring all deposits up to $2,500. The paper mentioned
continued:
The new bank which will have capital and surplus of $60,000, will take
over some $39,000 in loans, $37,500 in United States bonds, $31,000 of
Oregon school and County bonds. $3,600 in warrants, banking house and
fixtures valued at $10,000 and will have cash on hand and in correspondent
banks of $349,000. The bank also will assume approximately $348,000 in
deposits, $23,000 of county funds and $38,000 of postal savings. In addition to the deposits the bank will have $100,000 in cash against $100,000
special trust accounts which the conservator has taken in and these deposits
under the law will have 15 days to withdraw before they are automatically
assimilated by the new bank.
First of Clatskanie is the second bank in the State to obtain RFC preferred investment.
Income from the conservatorship of Mr. Hager totaled $16,000 above
expenses and with appreciation in bonds and collection of other assets the
bank has $40,000 more for depositors than set up in the plan which was
predicated on figures of last May.
Bylaws have been adopted which call for the bank to be operated under
an executive committee of directors to be rotated every 60 days, something regarded as new in banking circles.
The new bank takes over 80% of the deposits of the old as of March
2 1933. less any advances made to depositors from that date. In this
connection it is noted that cash on hand and in correspondent banks is
as much as the unsecured deposits purchased, showing a strong cash posttion. Assets not taken over by the new bank will be liquidated by the
trustees.
Officers of the bank will be W. T. Evenson, President; H. N. Jacobson,
Vice-President, and H. B. Hager, Cashier. . . .
PENNSYLVANIA.
Edward D. Trexler, attorney, Lewis H. Rothrauff, a
director of the old Pennsylvania Trust Co. of Reading, Pa.,
and Charles H. Kershner, former City Treasurer, have been




Feb. 24 1934

Financial Chronicle

named to liquidate the assets of the trust company, according to Reading advices on Feb. 17 to the "Wall Street
Journal."
Reading, Pa., advices on Feb. 17 to the "Wall Street
Journal" stated that the Sinking Spring Bank of Sinking
Spring, Pa., which had been on a restricted basis for many
months, had reopened for full operation. The institution
has capital and surplus of $100,000; a $10,000 reserve, and
deposits of $298,000, it was said.
We learn from the Pittsburgh "Post-Gazette" of Feb. 17,
that closed State banks in Pittsburgh and Western Pennsylva.nia will receive nearly $18,000,000 from the Federal
Government to pay their depositors, according to an
announcement made Feb. 16 by Dr. William D. Gordon,
State Secretary of Banking for Pennsylvania, following
approval of additional collateral for loans by the Reconstruction Finance Corporation. The total includes more than
$9,000,000, it was stated, announced as approved on Feb. 14.
Among the 41 banks to be benefited are 13 in Pittsburgh.
The advances will enable some of the institutions to complete payment of 100% of the funds "frozen," Dr. Gordon
said, while in other instances they will make possible the
distribution of first payments by certain banks. The institutions receiving loans, with the amounts allotted to each,
are:
American State Bank of Erie, $170,000; Bank of Secured Savings.
Pittsburgh, $565,000; Bank of Wesleyville, Wesleyville, $200,000: Bloomfield Trust Co., Pittsburgh, $300,000; Brownsville Trust Co., Brownsville,
$50,000; Citizens Title & Trust Co., Uniontown,$265,000.
Citizens Trust Co., Bellevue, $320,000; Citizens State Bank, Salisbury,
$72,000; Colonial Trust Co. of Farrell, $900,000; Conewango Trust Co.,
Warren, $115,000; Dixonville Deposit Bank, Dixonville, $50,000; Dollar
Title & Trust Co., Sharon, $150,000.
Erie Trust Co., Erie, $2,250,000; Farmers & Merchants' Bank, West
Newton, $391,000; Federal Title & Trust Co., Beaver Falls, $340,000;
Fifth Avenue Bank, Pittsburgh, $610,000; First Bank & Trust Co., Washington, $2,000,000: Franklin Savings & Trust Co., $200,000.
Garfield Bank, Pittsburgh, $85,000; Hamilton State Bank, Pittsburgh,
$64,000; Homewood Peoples' Bank, Pittsburgh, $480,000; Indiana County
Deposit Bank, Indiana, $301,000; McGillick Savings & Trust Co., Pittsburgh, $41,000; Merchants Savings & Trust Co., Pittsburgh, $182,000.
Miners' State Bank, New Salem, $50,000; Monongahela City Trust
Co., Monongahela, $588,000; Pennsylvania Bank & Trust Co.. Pittsburgh. $850,000; Pennsylvania Deposit Bank, McKeesport, $368,000;
Peoples Bank, Farrell, $45,000; Peoples Bank of Greensboro, Greensboro,
$22,000.
Peoples State Bank, East Pittsburgh, $30,000; Perry State Bank, Pittsburgh, $81,000; Pittsburgh American Bank & Trust Co., Pittsburgh,
$420,000; Real Estate Savings & Trust Co., Pittsburgh, $1,555,000;
Smicksburg State Bank, Smicksburg, $22.000.
State Bank of Beaver Falls, Beaver Falls, $180,000; State Bank of Salina.
Salina, $55,000; Tarentum Savings & Trust Co., Tarentum, $620,000;
Title & Trust Co. of Western Pennsylvania, $500,000; Valley Deposit &
T73
s1
t.
900
o.0.. Belle Vernon, $443,000; Washington Trust Co., Washington,
00
0
WASHINGTON.
The Yakima Valley Bank & Trust Co. of Yakima, Wash.
was granted a license, effective Feb. 14, to conduct "normal
banking operations," according to the Portland "Oregonian"
of Feb. 16, which continuing said:
The bank had been operated since March 1 under the Washington State
with resources of $856,726
Stabilization Act. It opened yesterday (Feb. 15)
and deposits of $650,538. 0. A. Fechter is President and Fred W. Moe.
Executive Vice-President.
WISCONSIN.
The State Banking Commission of Wisconsin announced
on Feb. 13 that the $66,000 in deferred deposits in the
Farmers' State Bank of Manawa, Wis., had been released
to depositors and that the institution is now operating on
an unrestricted basis, according to a dispatch by the Associated Press from Madison, Wis., on Feb. 13, which added:
Commissioner S. N. Schafer said the Manawa bank was able to pay
off its deferred deposits without resorting to sale of bank debentures to
the Reconstruction Finance Corporation.

Additional List of Banks Licensed to Resume Operations in Second (New York) Federal Reserve Dis-

trict.
Under date of Feb. 21 the New York Federal Reserve
Bank issued the following list, supplementing its statement
of Jan. 31 (given in our issue of Feb. 3, page 801), showing
banking institutions in the Second (New York) District
which have been licensed to resume full banking operations:
FEDERAL RESERVE DANK OF NEW YORK.
[Circular No. 1356, February 2119341.
MEMBER BANKS-NEW YORK STATE.
Greenwood-The First National Bank of Greenwood (Effective 9:00 a.m.,
Feb. 24, 1934).
NEW JERSEY.
Guttenberg-Liberty National Bank in Guttenberg. (Newly chartered to
succeed The Liberty National Bank of Guttenberg).
NON-MEMBER BANK-NEW YORK STATE.
Hiram Maxfield State Bank. (Newly authorized Feb. 6
i.4)
Naples-The
GEORGE L. HARRISON,
Governor.

Volume 138

Financial Chronicle

ITEMS ABOUT BANKS, TRUST COMPANIES, & c.
New York Cocoa Exchange membership of David Fromm
was sold, Feb. 19, to Ernest L. Cleverley, for another, for
$3,500,an advance of $500 over the last transaction of Feb. 7.
Frank S. Neuman was on Feb. 21 appointed Auditor of
the Bank of the Manhattan Co. Mr. Neuman was formerly
in charge of the Branch Audit Department.
At a meeting of the Board of Trustees of the Central
Hanover Bank & Trust Co. of New York, on Feb. 20,
Alan K.Lauckner was appointed an Assistant Vice-President.
Walter Rumsey Marvin, President of the Trust Co. of
Larchmont, Larchmont, N. Y., died on Feb. 17 at his
winter home in Wilmington, N. C., after an extended
illness. He was 61 years old. Mr. Marvin was born in
Pittsburgh, Pa., and was graduated from Yale in 1893.
He started his business career with the National Biscuit
Co.of which he became Vice-President and General Manager,
resigning in 1918 to move to Pittsburgh as head of the Pennsylvania Chocolate Co. In 1924 he went to Larchmont to
become President of the trust company, of which he was
one of the founders.
Arthur Scott Gilman, an investment banker of Boston,
Mass., died on Feb. 13 in Cambridge in his 55th year. He
had been connected with the firm of Coffin & Burr for
14 years. Born in Cambridge Oct. 25 1879, Mr. Gilman
attended Browne & Nichols School and was graduated from
Harvard in 1900. After working with the National City
Bank, New York, he became a farmer, in an effort to regain
his health. In 1920 he became connected with Coffin &
Burr Co.
Chester Smith, formerly Assistant Cashier of the Central
Ave. branch of the Hudson County National Bank of Jersey
City, N. J., was advanced to a Vice-President of the institution by the directors on Feb. 14 to fill the vacancy caused
by the death of the late Walter E. Keller. At the same
time Robert Dencker of the main office was named an
Assistant Cashier to succeed Mr. Smith. The "Jersey
Observer" of Feb. 15, from which this is learnt, continuing
said in part:
Mr. Smith has been with the Hudson County National Bank for 14
years. Prior to that he was with the First National Bank, where he
entered the banking business as a messenger.
At the time the Hudson County National took over the old Merchants'
National Bank, on Central Ave., Mr. Smith was then Assistant Cashier.
He was retained in the merger.

The First National Bank of Haddon Heights, N. J., with
capital of $100,000, was placed in voluntary liquidation on
Feb. 15. The institution was taken over by the First Camden National Bank & Trust Co. of Camden, N.J.
Effective Feb. 6 1934, the First National Bank of Albion,
Albion, Pa., capitalized at $50,000, was placed in voluntary
liquidation. It was succeeded by the First National Bank
at Albion.
The Bethlehem National Bank, Bethlehem, Pa., was
chartered by the Comptroller of the Currency on Feb. 15.
It succeeds the Bethlehem National Bank and is capitalized
at $400,000, consisting of half preferred and half common
stock. S. L. Caum is President and Weir Jepson, Cashier
of the new institution.
A charter was issued on Feb. 10 by the Comptroller of the
Currency to the Berwyn National Bank, Berwyn, Pa., with
capital of $60,000. The new institution replaces The
Berwyn National Bank of the same place. William H.
Fritz heads the new bank and John C. Acker is Cashier.
The Tygarts Valley National Bank of Elkins, Elkins, West
Va., was chartered by the Comptroller of the Currency on
Feb. 13. The new institution succeeds The Elkins National
Bank and The Peoples National Bank of Elkins and is capitalized at $150,000, $50,000 of which is preferred stock and
$100,000 common stock. Frederick H. Barron is President
and E. M. M. Morris, Cashier.
A dividend of 5% amounting to approximately $900,000
will be paid to depositors of the Security-Home Trust Co.
of Toledo, Ohio, on Feb. 26. E. T. Stringfellow, Deputy
Superintendent of Banks in charge of the lqiuidation of the
Security-Home, announced on Feb. 10 that he had sufficient
cash on hand to make the payment and that the formal




1345

application to the court to be permitted to pay the dividend
would be filed on Feb. 13. The Toledo "Blade" of Feb.10,
from which this is learnt, continuing said:
the Home
The dividend has been made possible by the co-operation of
been
Owners' Loan Corporation. Mortgages held by the bank have
dividend
5%
the
for
needed
refinanced so rapidly that the last of the cash
was received this morning (Feb. 10).
Mr. Stringfellow says that more than $1,000,000 of other mortgage
hopeful of being
applications have been filed with the HOLC and he is
able to pay another dividend shortly after the one on Feb. 26.
by the SecurityThe Feb. 26 dividend will make a total of 25% paid
Home Trust Co.

Effective Jan. 2 1934, the First National Bank of Bellaire,
Bellaire, Ohio, capitalized at $300,000, went into voluntary
liquidation. The institution was succeeded by the First
National Bank in Bellaire.
The Indiana National Bank of Indianapolis, Ind.,is asking
the Comptroller of Currency for permission to increase its
capital $1,000,000, according to Indianapolis advices on
Feb. 17 to the "Wall Street Journal" which added:
The bank now has $2,000,000 capital. The new issue would be offered
te and subscribed by, the present stockholders.

John P. Oleson and Edward E. Brown, formerly VicePresidents of the First National Bank of Chicago, Chicago,
Ill., were named. Chairman of the Board and President,
respectively, of that institution, at a special meeting of the
directors held Feb. 19. Mr Brown fills the vacancy created
by the death last week of Melvin A. Traylor, while Mr.
Oleson was chosen to fill a position which had been vacant
since the resignation of Frederick H. Rawson last summer.
Announcement of the above and other appointments was
made by George A. Ranney, a director and member of the
executive committee of the bank, on behalf of the Board of
Directors, as follows:
At a meeting of this Board held to-day (Feb. 19) it was our sad duty to
fill the vacancy caused by the death of Melvin A. Traylor, for nine years
President of this bank, a man beloved and respected by us all, our friend
and companion for years.
The position of Chairman of the Board, vacant since the resignation of
Frederick H. Rawson, due to ill health, was also filled.
John P. Oleson, an Executive Vice-President and associated with the
bank for over 40 years, was elected Chairman of the Board, senior officer
of the bank.
Edward E. Brown, also an Executive Vice-President, was elevated to
the Presidency of the bank. Mr. Brown's experience and ability eminently
qualifies him for this responsible position.
R. Frank Newhall and James B. Forgan, Jr., both Vice-Presidents in
Charge of Divisions, were appointed General or Executive Vice-Presidents.
Harold V. Amberg, General Counsel, was elected a Vice-President and
joins the general or executive group of Vice-Presidents, retaining his position
of General Counsel. Bentley G. McCloud and Craig B. Hazlewood are
already in this group of officers.
James B. Forgan, Jr., was elected a director to fill the vacancy caused
by the death of Mr. Traylor. Messrs. Oleson, Brown, and McCloud
were elected directors to succeed themselves at the annual meeting held
last month.
staff of
It is a source of gratification to the directors that the official
experience
this bank is so ably manned by executives whose training and
B.
James
as
have been gained under such able and well-known bankers
Forgan, Frank 0. Wetmore, Frederick H. Rawson, and Melvin A. Traylor,
all past heads of this institution.

The First National Bank of Chicago was organized in
1863 when Chicago had a population of 160,000. It was
the first bank in Chicago and the eighth bank in the United
States, it is said, to receive the approval of the Comptroller
of Currency under the National Currency Act enacted in
1863 and later known as the National Banking Act.
On Feb. 16, the First National Bank in DeKalb, DeKalb,
was chartered by the Comptroller of the Currency. The
new bank has a capital of $125,000, $75,000 of which is preferred and $50,000 common stock. Paul A. Nehring and
F. 0. Crego are President and Cashier, respectively, of the
new organization.
Associated Press advices from Lincoln, Neb., on Feb. 16
stated that the Nebraska State Banking Department on
that day had made the following dividend payments to failed
bank depositors:
Farmers' and Merchants' State Bank, McCook, 5% or
$12,080, bring amount returned to 56% or $135,300.
Security State Bank, Ravenna, 10% or $6,881, bringing
amount returned to 70% or $48,168.
The Packers National Bank in Omaha, Omaha, Neb., was
chartered by the Comptroller of the Currency on Feb. 14.
The new organization, which succeeds the Packers National
Bank of South Omaha, Omaha, is capitalized at $200,000,
consisting of $100,000 preferred and $100,000 common stock.
J. F. Coed is President and F. J. McCauley, Cashier, of the
new bank.

1346

Financial Chronicle

The Comptroller of the Currency on Feb. 15 granted a
charter to the First National Bank in Durant, Durant, Okla.
The new bank, which is capitalized at $100,000, made up of
$60,000 preferred stock and
0,000 common stock, will
replace The First National Bank of Durant. L. F. Lee is
President and Dial Currin Cashier of the new institution.
The Commercial National Bank of Little Rock, Little
Rock, Ark., capitalized at $300,000, was chartered by the
Comptroller of the Currency on Feb. 12. The new institution represents a conversion to the National System of The
Bankers' Commercial Trust Co. of Little Rock, A. E.
McLean is President and C. E. Crossland, Cashier.
We learn from the St. Louis "Globe-Democrat" of Feb. 10
that William J. Jones, Executive Vice-President of the
Manufacturers' Bank & Trust Co. of St. Louis, Mo.,
has resigned. Mr. Jones formerly was Executive VicePresident also of the formerly Lafayette South Side Bank
& Trust Co. of St. Louis, which was succeeded by the
Manufacturers' Bank.'
We learn from the St. Louis "Globe-Democrat" of Feb. 13
that Wood Netherland the previous day was appointed a
Vice-President of the Mercantile-Commerce Bank & Trust
Co. of St. Louis, Mo., and would take over his new office as
soon as someone was appointed to succeed him in his present
position of General Agent of the Farm Credit Administration
at St. Louis. Mr. Netherland will head the department
handling accounts of interior banks for the Mercantile Commerce. The paper mentioned continued in part:
Born in 1889 at Perry, Mo., Netherland entered his father's bank at
Perry immediately on his graduation from high school. Two years later
he enrolled for a special course in commercial law at the University of
Missouri, and in 1909 became a bank bookkeeper at Fort Smith, Ark.
A year later he became Secretary of the Arkansas Valley Trust Co., serving
four years before becoming Assistant Cashier of the City National Bank of
Fort Smith.
He served overseas with the air corps during 1917 and 1918 and returned
after the war to become Cashier of the City National of Fort Smith. From
1921 until 1926 he was with the First National of Fort Smith as Assistant
Cashier and Cashier and Trust Officer, and during the same time served
for a period as President of a bank at Mulberry, Ark.
In Aug. 1928 he came to St. Louis as Vice-President and Treasurer of the
Federal Land Bank and Federal Intermediate Credit Bank here, and a year
later was made President of both institutions. He held both posts until
he was made General Agent of the FCA in Aug. 1933....

N. S. Bennett, receiver for the First National Bank of
Louisburg, N. C., has announced that he will shortly pay a
third dividend to the creditors of the institution, according
to a dispatch from that place, appearing in the Raleigh
"News & Observer" of Feb. 9, which added:
This dividend will be a 15% payment to the creditors and will bring the
total payment up to 85%, the first dividend being for 50% on Aug. 15
1932. and the second, a 20% payment, on April 29 1933. Creditors will
be notified at a subsequent date when the checks are ready for delivery.

The following changes were made in the personnel of the
Bank of Manchester, Manchester, Ga.,at the annual meeting
of the directors held Feb. 9, according to advices from Warm
Springs, Ga., on that date, printed in the Atlanta "Constitution":
James S. Peters, former Vice-President of the bank, was named President
of the institution; C. V. 'Fruit, of LaGrange, the former President, was
elected Chairman of the Board of Directors, and H. S. Peters and B. A.
Dunn were named Vice-Presidents. L. M.Bradford was re-elected Cashier.
-4- •

Opening of a new bank in East Point, Ga., headed by
George F. Longinp is expected in the near future according
to an announcement made Feb. lb coincident with the oversubscription of the $50,000 capital stock and $12.500 surplus
by residents of East Point, Hapeville and College Park,
which three cities the institution will serve. The Atlanta
"Constitution" of Feb. 16, authority for the above, went on
to say:
Application for the charter has been made and the opening awaits its
being granted. The bank will be located in the modern quarters formerly
occupied by the East Point branch of the First National Bank. The Board
of Directors of the new banking company will be named soon, it was said.
It is a State bank and will operate under the Federal Guarantee Deposit
Corporation.
Mr. Longino, widely known in Atlanta, is Chairman of the Fulton
County Board of Commissioners and is experienced in banking, having
formerly operated the College Park Bank and managed branches of Atlanta
banks.

The Comptroller of the Currency on Feb. 14 granted a
charter to The First National Bank at Orlando, Orlando,
Fla., with capital of $200,000, half of which is preferred and
half common stock. The new bank replaces the First
National Bank & Trust Co. in Orlando. W. T. Bland and
Linton E. Allen are President and Cashier, respectively, of
the institution.




Feb. 24 1934

The Republic National Bank & Trust Co. of Dallas, Tex.,
announces the death of William 0. Connor, Chairman of the
Board, on Feb. 5 1934.
The First National Bank of Albuquerque, Albuquerque,
N. M., with capital of $400,000, was placed in voluntary
liquidation on Feb. 7, last. It was succeeded by the First
National Bank in Albuquerque.
The approaching consolidation of two Santa Ana, Calif.,
banks—the First National Bank and the Farmers' & Merchants' Savings Bank—was indicated in a dispatch from that
place on Feb. 8, printed in the Los Angeles "Times," which
read in part as follows:
Election of A. J. Cruickshank as Chairman of the Board of Directors
and A. I. Mellenthin as President of the First National Bank in Santa Ana
will be followed within the next few days by the forma launching of the
Institution's operation under its consolidation with the Farmers' & Merchants' Savings Bank. The two organizations have been affiliated to
many years.
Cruickshank declared to-day, however, that he will not accept the post.
Mellenthin will assume active duties as President within the next few
days. filling the position occupied by Cruickshank before his election as
Chairman of the Board. For the past five years Mellenthin has been
Executive Vice-President and Cashier of the Commercial National Bank
here.
Following election of directors at the annual meeting yesterday (Feb. 7)
the Board chose the above named officials. It also named W.B. Williams
Vice-President and Cashier. George S. Briggs and E. B. Sprague were
elected Vice-Presidents. Other officers will be named later.

Twenty-five directors of Bank of America National Trust
& Savings Association and 34 directors of its affiliated State
institution, the Bank of America (California), were elected
at the respective annual meetings of the banks held in San
Francisco on Feb. 13. All officers of both banks were reelected by the directors. The executive officers include: A. P.
Giannini, Chairman of the Board; Leon Bocqueraz and
Arthur Reynolds, Vice-Chairmen of the Board; Dr. A. H.
Giannini, Chairman of the General Executive Committee;
Will F. Morrish, President; L. M. Giannini, Senior VicePresident; and W. E. Blauer, Chairman of the General
Finance Committee. The announcement by the bank went
on to say in part:
Membership of the Board of Bank of America N. T. & B. A. was reduced
to 25 from 50. in conformity with the provisions of the National Banking
Act of 1933. The twenty-five directors who retired from the Board of the
National bank remained directors of the State bank;seven directors elected
to serve on the Board of the national bank were also elected directors of the
State bank, and two new directors were added to the Board of Bank of
America (California).
The new directors of the State bank are Sylvester Andriano, former San
Francisco Supervisor and at present attorney for the Italian Consul in this
City; and Thomas Crowley, head of the Crowley Launch and Tugboat Co.
of San Francisco.

The First National Bank in Clatskanie, Clatskanie, Ore.,
was granted a charter by the Comptroller of the Currency on
Feb. 12. The new bank, which succeeds The First National
Bank of Clatskanie, is capitalized at $50,000, half of which
is preferred and half common stock. W. T. Evenson and
H. B. Hager are President and Cashier, respectively, of the
new bank.
Effective Jan. 29, last, The Grays Harbor National Bank
of Aberdeen, Aberdeen, Wash., capitalized at $200,000, was
placed in voluntary liquidation. The institution was absorbed by The National Bank of Commerce of Seattle, Wash.
At a meeting of the board of directors of the Dominion
Bank, Toronto, Canada, held Feb. 15, quarterly dividend
of 23/2% was declared payable April 3 to shareholders of
record March 20.
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Low-priced stocks were the favorites during most of the
present week, and while there was some demand for the regular market leaders, prices were irregular, trading was quiet
and changes narrow, particularly during the early part of
the week. On Wednesday there was considerable improvement as buying was resumed on a somewhat larger scale,
though cheaper stocks were again in demand. Some realizing
has been in evidence, and while the market has not been
actually weak, there has been a lack of push which kept
price changes within a narrow channel. Call money renewed
at 1% on Monday and remained unchanged at that rate
throughout the week.
Steel stocks and chemical issues led the upswing in a
moderately strong market during the brief session on Saturday. During the first half of the trading some of the leading
speculative shares showed a sagging tendency, though there
was little pressure apparent to account for the weakness.
Motor stocks were in demand, particularly Chrysler which
was somewhat higher at the close. American Can and

Volume 138

United States Steel were active, and there was considerable
speculative interest in the rails, and a moderate amount of
buying in the specialities group. Aircraft stocks and alcohol
issues generally moved lower. Among the changes on the
side of the advance were Allegheny Steel 2 points to 23,
Allied Chemical & Dye 2 points to 160, Crucible Steel 2
points to 37, Homestake Mining Co.3 points to 328, Midland
Steel pref. 234 points to 85, National Lead 5 points to 140,
Public Service of N. J. (8) 234 points to 1193/2, Sun Oil pref.
(6) 234 points to 106 and Worthington Pump pref. "B" 3
points to 4734.
Opening strength was followed by considerable realizing
on Monday and most of the gains registered in the initial
transactions were cancelled. Leading stocks receded from
fractions to 2 or more points, though there were occasional
shares that stood out against the trend and showed modest
gains at the close. Included in the latter group were the
motor issues and auto accessories, many of which were higher
at the close. Low-priced shares were fairly active, though
the changes were small. The declines included among
/
g, Armour
others, American Can (4) 234 points to 1047
Illinois 2 points to 613%, Atlas Powder 2 points to 44, Brooklyn Union Gas (5) 3 points to 75, J. I. Case Co. 23% points
to 793%, Crucible Steel pref. 3 points to 663%, Endicott
Johnson 3 points to 60, Radio Corp. pref. A 2 points to 3034,
Texas Pacific 63/2 points to 31, Union Pacific 33% points to
803%, United States Smelting & Refining(%p)3% points to
1273
4, United States Steel 1 point to 58 and Union Bag &
Paper Co. 134 points to 56.
The opening of the New York Stock Exchange was delayed
about an hour on Tuesday due to the absence of many of
the traders who were unable to reach the Exchange on time
on account of the unusually heavy snowstorm that almost
completely paralyzed traffic on many of the railroads. The
turnover was exceptionally light, most of the active stocks
drifting along within narrow limits. Aircraft issues like
Douglas and United Aircraft were in demand and moved
fractionally higher. Steel stocks, alcohol shares and some of
the motors were firmer toward the end of the day but the
utilities, as a group, were down on the day. Consolidated
Gas was the outstanding weak spot of this group and lost
about a point before the end of the session. Rails attracted
some attention and the tone of the miscellaneous industrials
was somewhat stronger. Among the stocks closing on the
side of the advance were Allied Chemical & Dye, 23% points
to 1583%; American Type Foundry pref., 534 points to 263/s;
Celanese Corp., 134 points to 433/2; Pittsburgh Steel pref.,
3 points to 41; Pure Oil pref., 23/b points to 7734; Shell
4; Studebaker pref., 3
Union Oil pref., 23
4 points to 853
points to 43; Union Pacific pref. (4), 23% points to 8234;
United Aircraft, 234 points to 233/8; Wright Aero, 3 points
to 81; Baldwin Locomotive pref., 2 points to 50; Air Re4 points to 1063%.
duction 1 point to 103 and American Can,13
Irregularity was strongly in evidence during most of
the trading on Wednesday, though there was a moderate
pick-up during the final half hour of trading due to short
covering. Some selling was apparent in the forenoon, but
this was readily absorbed as the day progressed, much
of the buying being in the cheaper stocks. One of the
strong shares of the session was Republic Steel pref., which
was in good demand and surged upward about 3 points.
Prominent among the stocks closing on the side of the
advance were American Beet Sugar pref., 434 points to 62;
American Commercial Alcohol, 134 points to 4934; American
%; Associated Oil
Type Foundry pref., 1% points to 273
(34p.), 3 points to 3234; Austin Nichols, 6 points to 5434;
Canadian Southern, 634 points to 50; Central RR. of New
Jersey, 2 points to 82; Coca Cola,434 points to 109; Eastman
Kodak, 334 points to 133; Pittsburgh Steel pref., 2 points
to 43; Pullman, 2 points to 5834; Remington Rand pref.,
8; Wool3 points to 61; Vulcan Detinning, 41% points to 703/
% points to 5234, and United States Smelting
worth (2.40), 15
& Refining, 13% points to 13034.
The New York Stock Exchange and the Curb Exchange
were closed on Thursday in observance of Washington's
Birthday.
Motor equipment stocks and rayon shares were under
pressure during the morning trading on Friday, and as the
weakness in this group gradually increased, the selling
slowly extended to other parts of the list. The specialties,
as a" group, receded from fractions to 4 or more points and
other of the favorite speculative issues tumbled downward
up to 3 points. Railroad shares were soft, with the possible
exception of Union Pacific which broke through to a new




1347.

Financial Chronicle

high for the year. Other prominent issues showing considerable weakness were Celanese, United States Smelting
& Refining, American Can, Allied Chemical & Dye and
Libby-Owens Glass. Among the noteworthy recessions at
the end of the day were Armour Illinois pref., 434 points
4; Chrysler, 2
to 583%; Bethlehem Steel, 33% points to 753
points to 5734; Crucible Steel pref., 33% points to 63; Eastman Kodak, 33% points to 8934; Norfolk & Western, 534
points to 175; Sloss Sheffiled, 3 points to 32; Studebaker
pref., 4 points to 3834; Union Pacific, 434 points to 128;
United States Industrial Alcohol, 3 points to 5534, and
Wilson & Co. pref., 634 points to 663
4.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE,
DAILY, WEEKLY AND YEARLY.

Week Ended
Feb. 23 1934.

Railroad
Stocks,
State,
Number of and Mtsce11. Municipal &
For'n Bonds.
Shares.
Bonds.

Saturday
Monday
*Tuesday
Wednesday
Thursday
Friday
Total

Total
Bond
Sales.

United
States
Bonds.

$2,320,000
3,378,000
3,077,000
2,821,000
HOLIDAY
11,708,000
3,086,000

$605,500 $10,174,500
560,000 17.077,000
639,500 13,166,500
437,500 15,646,500

8.920.5.53 353.934.000 314.682.000

32.621.100 $71.237.100

1,164,900
2,346,415
1,219,630
1,899,740
2,289,868

Sales at
New York Stock
Exchange.

.

Week Ended Feb. 23.

I

378,600

15,172,600

Jan. 1 to Feb. 23.

1934.

1933.

8,920,553

4,250,073

105,391,301

34,885,464

$2,621,100 $17,111,300
14,682,000 13,619,000
53,934,000 30,775,000

393,136,500
156,305,500
528,058,000

$74,562,600
112,658,500
275,593,900

$71,237,100 $61,505,300

$777,500,000

$462,815,000

Stocks-No. of shares_
Bonds.
Government bonds_ _ _
State & foreign bonds_
Railroad & misc. bonds
Total

$7,249,000
13,139,000
9,450,000
12,388,000

1934.

1933.

*Exchange opened at 11 a. m. because of heavy snowstorm.
DAILY TRANSACTIONS AT THE BOSTON, PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Week Ended
Feb. 23 1934.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
m...- ...,-

...4..A

Baltimore.

Philadelphia.

Shares. Bond Saks. Shares. Bond Sales. Shares. Bond Sales,
30.504
$5,000
37,493
21,390
3,000
30,711
9,000
HOL IDAY
5,000
15,46.5

11,879
19,521
$8,500
11,187
17,319
7,000
110L IDAY
7,025

823
$9,000
2,063
1,000
5,139
19,000
3,757
13,000
HOL IDAY
2,375
6,000

135,563

$22,000

66,931

$15,500

14,157

$48,000

om* QM

toe

inn

RR 554

194 AAA

1R A4Q

*55

200

COURSE OF BANK CLEARINGS.
Bank clearings this week will show an increase 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. 24) bank exchanges for all cities of the United
States from which it is possible to obtain weekly returns,
will be 18.3% above those for the corresponding week last
year. Our preliminary total stands at $4,765,942,500,
against $4,027,078,039 for the same week in 1933. At this
center there is a gain for the five days ended Friday of 25.4%.
Our comparative summary for the week follows:
•
Clearings-Returns by Telegraph.
Week Ended Feb. 24.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans

1934.

•

Per
Cent.

1933.

32,601,.447,593 $2,074,489,981
113,221.128
137,708,042
217,000,000
186,000,000
130,000,000
119,000,000
42,556,083
49,160,788
35,800,000
47,300,000
61,578,000
69,643,000
No longer will re port clearings
47,821,263
52,999,314
*
48,934,863
45,817,536
38,492,556
34,511,789
33,879,819
20,746,721
30,270,000

+25.4
+21.6
-14.3
-8.5
+15.5
+32.1
+13.1
+10.8
-16.0
-1.8
+45.9

Twelve cities, 5 days
Other cities, 5 days

$3,414,835,945
556,782,805

$2,823,542,501
523,839,040

+20.9
+6.3

Total all cities, 5 days
All cities, 1 day

$3,971,618,750
794,323,750

$3,347,381,541
679.696,498

+18.6
+16.9

Total all cities for week
S4 7R5 R42 niln
54027078
•No clearings; all banks closed by order of State Governor.

Mg

A-18.3

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 has to be in all cases estimated.
In the elaborate detailed statement, however: which we
present further below, we are able to give final and complete
results for the week previous, the week ended Feb. 17. For
that week there is an increase of 2.4%, the aggregate of
clearings for the whole country being $4,597,530,999, against
$4,491,749,494 in the same week in 1933.
Outside of this city there is an increase of 10.6%, the bank
clearings at this center having recorded a loss of 1.7%.

1348

Financial Chronicle

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,
there is a decrease of 1.9%,and in the Philadelphia Reserve
District of 10.2%, but in the Boston Reserve District there
is an increase of 4.9%. In the Cleveland Reserve District
the totals are larger by 3.8%, in the Richmond Reserve
District by 0.2% and in the Atlanta Reserve District by
31.9%. The Chicago Reserve District has a gain of 22.7%,
the St. Louis Reserve District of 27.7% and the Minneapolis Reserve District of 31.8%. The Kansas City Reserve District records an expansion of 31.8%, the Dallas
Reserve District of 36.0%, and the San Francisco Reserve
District of 23.9%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANE CLEARINGS;

1934.

Week Ended Feb. 171934.

Federal Reserve Dicta.
$
Ist Boston ____12 cities
207,163,128
2nd NewYork_12 "
3,028,709,972
259,243,308
3rd Philadelpla 9 "
ith Cleveland__ 5 "
188,352,746
5th Richmond.6 "
92,667,632
105,455,489
5th Atlanta--__10 '.
7th Chicago-19 "
226,836,768
8th St.Louls___ 4 "
104,087,974
0th Minneapolis 7 "
69,539,627
10th Kansaa City 10 "
102,374,350
11th Dallas
45,782,165
5 "
12th San Fran 13 ••
166,317,840
Total
112 cities
Outside N. Y. City
Canada

$
197,580,735
3,086,080.490
288,667,830
181,495,985
92,492,212
80,695,219
184,876,221
81,479,689
52,743,202
77,703,455
33,669,657
134,354,799

1931.

1932.

$
%
+4.9
283,298,426
-1.9 3,830,217,332
319,498,314
-10.2
+3.8
234,710,313
+0.2. 113,152,861
+31.9
96,026,206
383,806,681
+22.7
107,043,286
+27.7
+31.8
76,137,739
+31.8
114,471.315
46,187,443
+36.0
+23.9
206,007,773

$
418,184,925
5,985,329,534
467,758,043
332,696,057
143,013,395
151,472,878
660,813,790
137,201,361
104,932,847
153,235,212
58,120,952
273,234,693

4,597,530,999 4,491,749,494 +2.4
1,648,829,810 1,490,749,443 +10.6

5,810,557,689
2,094,052,757

8,885,993,687
3,036,640,413

211,927,742 +3.5

233,103,688

318,056.923

82 ettle.

259,427.370

We now add our detailed statement, showing last week's
figures for each city separately for the four years:
Week Ended Feb. 17.
Clearings at
1934.
First Federal
Me.-Bangor_ -Portland
Mass.-Boston _ _
Fall River_ __ Lowell
New Bedford
Springfield. _
Worcester
Conn.-Hartford
New Haven_ _ _
It.0.-Providence
N.H.-Manches'

1933,

$
$
Reserve Dist net-Boston
503,573
331,914
1,479,500
1,726,171
182,015,332 170,532,627
560,599
541,557
267,273
233,624
681,670
556,719
2,372,093
2,663,579
1,207,443
1,592,668
6,833,620
9,133,019
3,256,506
3,264,050
7,646,000
6,670,700
339,519
334,107

Total(12 cities)

207,163,128

197,580,735

Inc. or
Dec.

1932.

%

$

1931.
$

+51,7
-14.3
+6.7
+3.5
+14.4
+22.4
-10.9
-24.2
-25.2
-0.2
+14.6
+1.6

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

521,943
2,581,911
376,833,969
1,128,043
460,024
851,161
4,282,495
2,524,391
10,898.222
6.803,550
10,746,800
552,416

+4.9

283,298,426

418,184,925

Second Feder at Reserve D istrict-New YorkN. Y.-Albany_ _
6,126,415
9,608,103 -36.2
5.778,695
6,228,583
Binghamton._ 782,071
737,039 +6.1
1,242,756
1,123,376
Buffalo
24,969.066
22,909,144
+9.0
29,900,000
41,650,434
Elmira
404,593
715,036 -43.4
769,481
941,972
Jamestown___ _
429.176
654,835 -34.5
856,280
1,180,912
New York _ _ _ _ 2,948,701,189 3,001,000,051 -1.7 3,716,504,932 5,849,353,274
Rochester
5,638,625
5,026,702 +12.2
7,393,754
9,087,475
2,764,732 +18.2
3,269,008
Syracuse
4,157,505
4,547,298
Conn.-Stamford
1,971,721
2,142,045 -8.0
2,579,210
3,066,696
N. J.-Montclair
396,846
486,877 -18.5
520,498
745,340
14,691,909
Newark
16,215,108 -9.4
30,500,258
30,437,303
21,329,353
Northern N. J_
23,820,818 -10.5
30.013.963
36,966,871
Total(12 cities) 3,028,709,972 3,086,080,490

-1.9 3,830,217,332 5,985,329,534

Third Federal Reserve Dist rIct-Philad elphia
Pa.-Altoona.._
433,700
298.896 +45.1
Bethleham _ _ _
b
b
b
220,472
Chester
282,738 -22.0
Lancaster
716,483
859,560 -16.6
241,000,000 267,000,000 -9.7
Reading
934,845
1,440.932 -35.1
2,175,215 +0.8
2,193,476
Scranton
1,322,410
Wilkes-Barre.. _
1,281,693 +3.2
971,922
York
968,796 +0.3
N. J.-Trenton._
11,450,000
14,360,000 -20.3
Total(9 cities)-

259,243,308

Fourth Feder al
Ohio-Akron. _
Canton
Cincinnati--Cleveland
Columbus
Mansfield
Youngstown
Pa.-PIttsburgh_

288,667,830 -10.2

Reserve D !strict--Cie. eland
c
c
c
c
C
c
50,681,927
39,071,908 +29.7
53,281,329
65,682,010 -18.9
8,678,400
7,856,800 +10.5
936,774
733,063 +27.8
b
b
b
68,152,204 +9.7
74,774,316

1,318,548
b
562,419
1,826,743
448,000,000
2,440,782
4,460,516
3,544,244
2,020,792
3,584,000

319,498,314

467,758,043

+3.8

234,710,313

332,696,057

Fifth Federal Reserve Dist rict-Richm ondW.Va.-Hunt'ton
127,776
301,598 -57.6
Va.-Norfolk_ _
1,942,000
1,898.000 +2.3
Richmond.- _
28,269,943
23,649,043 +19.5
661,644
S.C.-Charleston
602,205 +9.9
Md.-Baltimore_
49,140,294
50,324,930 -2.4
D.C.-Washing'n
12,525,975
15,716,436 -20.3

514,207
2,490,402
27,923,745
875,918
61,951,912
19,396,677

622,242
3,053,745
35,347,144
1,623,000
78,590,064
23,777,200

+0.2

113,152,861

143,013,395

Sixth Federal Reserve Dist act-Ationt aTenn.-Knoxville
2,180,431
2,846,380 -23.4
Nashville
11,373,856
7,918,565 +43.6
Ga.-Atlanta__ _
39,000,001
25,500,000 +52.9
1,173,875
Augusta
620,478 +89.2
Macon
683.387
354,756 +92.6
11,215,000
9,487,466 +18.2
Fla.-Jacknville
13,148,086
8,464,202 +55.3
Ala.-Birm'ham
927,257
Mobile
750,539 +23.5
b
b
Miss.-Jackson
b
131,884
163,332 -19.3
Vicksburg
La.-NewOrleans
26,621,712
24,589,501
+8.3

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

2,500,000
15,449,674
39,052,293
1.421,336
857,118
14,952,373
13,454,397
1,306,385
b
162,409
62.316.893

96,026,206

151,472,878

Total(6°IMO-

Total(10 cities)

92,667,632

106,455,489




181,495,985

92,492,212

80,695,219 +31.9

1933.

Inc. or
Dec.

1932.

3
Seventh Feder at Reserve D istrict-Chi cagoM ich.-Adrian_ _
a56,683
169,236
Ann Arbor...
a473,889
584,649
Detroit
a61,649.119
77,348,163
Grand Rapids_
a1,429,806
2,930,016
Lansing
a694,063
1,744,900
Ind.-Ft. Wayne
608,926
864,895
1,272,086
Indianapolis..
10,127,000
10,460,000 -3.2
11,569,000
South Bend._
889,217
946,083 -6.0
1,473,746
Terre Haute...
3,147,369
3,125,373 +0.7
3,160,488
Wis.-Milwaukee
13,737,240
10,623,445 +29.3
16,831,683
Ia.-Ced. Rapids
8256,107
825,449
Des Moines_ _ _
4,851,206
4,115,251 -1-177:6
5,548,820
Sioux City_ _ _ _
1,783,434 +26.9
2,262,799
2,815,789
Waterloo
484,115 -19.8
388,272
111.-Bloonflon_
1,139,318
186,308,993 148,584.736 +25.4 250,206,253
Chicago
368.390 +30.5
Decatur
480,638
518,077
2,069,743 +26.4
Peoria
2,617,036
3,122.643
581,629
520,958 +11.6
Rockford
821.207
929,798 -10.0
Springfield_ _ _ _
836,443
1,725,158
-

226,836,768

184,876.221 +22.7

Eighth Federa I Reserve Di strict-St. L OUISInd.- Evansville
18,949,559 +41.2
26,749,998
KY.-Louisville_.
53,000,000 +16.6
Mo.-St. Louis
61,800,000
Tenn.-Memphis
9,030,130 +68.7
15,234,976
111.-Jacksonville
Quincy
500.000 -39.4
303,000

1931.

169,898
859.818
140,186,257
4,968,553
2,848,627
2,468,655
21,804,000
1,968,683
4,439,484
21.013,920
2,418,946
6,506,717
3,828,075
1,456,490
437,313.589
848,658
3,334,888
2,379,448
1,999,084

383,806,681

660,813,790

13
22,908,973
70,900,000
12,453,298

23,597,937
98,400,000
14,581,646

781,015

621,778

81,479,689 +27.7

107,043,286

137,201,361

Ninth Federal Reserve Dis tact-Minn capons
1,437,588 +14.7
Minn.-Duluth_
1,649,339
34.753,810 +28.5
44,658,040
Minneapolis_
12,871.397 +51.8
St. Paul
19,535,118
N. 03.-Fargo...
1,322,104 +10.0
1,454,514
419,922 +0.1
S. D.-Aberdeen
420,046
263,482 +34.6
Mont -Billings,.
354,575
1.674.899 -12.4
1,467,995
Helena

2,421,590
50,544,474
18,983,796
1,811.970
614,831
350.127
1,410,951

4,417,799
71,594,147
22,979,674
1.801,099
875,224
492.562
2,772,342

Total(4 cities) _

104,087,974

52,743,202 +31.8

76,137,739

104,932,847

Tenth Federal Reserve Dist rict-Kansa s City37,655 +67.9
Neb.- Fremont_
63,213
92,947 -8.5
85,067
Hastings
1,407,034 +59.8
2,248.939
Lincoln
16.293,526 +77.4
28,904,538
Omaha
1,294,370 +40.4
Kan.-Topeka
1,816,841
3,071.204 -7.5
2.841,072
Wichita
52,281,368 +20.4
380.-Kan. City_
62,957,981
2,161,211 +20.2
St. Joseph__ _ _
2,596,771
578,003 -25.3
Colo.-Col. Spgs.
431,990
486,137 -12.0
Pueblo
427,939

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

249,725
380,080
2,797,676
39,081.612
3,372.954
5,128.235
95.478,776
4,556,273
921,283
1,268,598

77,703,455 +31.8

114,471,315

153,235,212

Eleventh Fede ral Reserve D strict-Dell asTexas- Austin_ _
828,734 -0.6
824,156
24,667,928 +42.4
Dallas
35,121.843
Ft. Worth. _ _
3,927,138 +26.8
4,977,901
Galveston
1,910,000 +37.0
2,616,000
La-Shreveport..
2,335,857 -4.0
2,242,265

864,932
33,475,121
5,817,668
3,231,000
2,798.722

1,648,200
40,806,429
9.420,328
2,913,000
3,332.995

33,669,657 +36.0

46,187,443

58,120,952

Total(7 cities).

Total(10 cities)

Total(5 cities)_

69,539,627

102,374,350

45,782.165

Twelfth Feder al Reserve D 'strict-San Franci sco26,121,538
Wash.-Seattle_ _
17,546,625 +15.5
20,273,403
7,055,000
3,952,000 +51.0
Spokane
5,967,000
500,998
280.511 +36.0
Yakima
384,038
20,545,220
13,457,748 +34.0
Ore -Portland._
18,048.178
10,851,433
Utah-Salt L. City
7,472,438 +11.4
8,325,810
3,594,821
Calif.-Long Bch,
2,545,149 +10.9
2,821,462
LOS Angeles... No longer will report clearin gs
4,583,246
2,662,733 +12.7
3,000,156
Pasadena
5,471,269
2,556.877 -12.5
2,236,142
Sacramento _ _ _
San Diego_ _ _ No longer will report death' gs
80.329.582 +25.9 121,879,836
San Francisco. 101,141,369
1,863.882
1,084,331 +30.1
San Jose
1,410,295
1,224,658
804,338 +10.9
Santa Barbara_
891,902
1,068,573
765,371
+
0.3
Santa Monica.
767,388
1,247,299
797,096 +31.8
1,050,697
Stockton
166,317,840

134,264.799 +23.0

Grand total (112
4,597,530,999 4,491,749,494
cities)

206,007,773

33,760,929
9,587,000
764,951
28,400,510
15,295,258
6,064,768
5,565,169
6,327.713
159,779,545
2,338.224
1,916,402
1,660,924
1,773,300
273,234,693

+2.4 5,810,557,689 8,885.993,687

Outside NewYork 1,648,829,810 1,490,749,443 +10.6 2,094,052.757 3,036,640,413
Week Ended Feb. 15.
Clearings at1933.

1934.

c
C
62,248,210
109,831,337
13,353,100
1,717,627
b
145,545,783

188,352,746

1934.

Total(13 cities)
593,562
b
551,398
1,317,568
302,000,000
2,647,418
2,924,365
2,333,449
1,379,554
5,751,000

c
c
59.147,815
76,659,508
8,562,900
556,145
b
89,783,945

Total(5 cities).

Week Ended Feb. 17.
Clearings al-

Total(10 cities)

Inc.or
Dec.

1933.

Feb. 24 1934

Inc. or
Dec.

1932.

1931.

CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William....
New Westminster
Medicine Hat...
Peterborough._
Sherbrooke
Kitchener
Windsor
Prince Albert_._ Moncton
Kingston
Chatham
Sarnia
Sudbury

$
63,284,014
88,154,518
22,798,858
12,408,494
3,158,464
2,493,644
1,625,773
3,007,811
3,531,021
1,405,621
1,317,120
1,936,352
3,118,614
2,052,324
222,995
323,117
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

66,528,196
81,261.081
22,208,484
10,886,919
3,013,457
3,079,459
1,478,654
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

+8.5
+2.7
+14.0
+4.8
-19.0
+9.9
+11.8
-8.6
+1.3
+26.5
-10.8
+42.5
+14.6
+3.7
+31.2
-12.0
+9.8
+0.1
+11.4
+30.1
+24.4
+24.4
-15.8
+18.4
+17.
+69.
+8.
-9.
-11.
+5.
+33.

76,061,446
67,870,843
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

$
112,044,625
102,089,157
30,133.071
17,617,055
6,638,123
4,697,949
2,792,877
4,676,560
7,291,760
3,803,399
1,873,554
2,657,797
4,439,046
2,718,840
415,657
396,959
1,525,250
715,392
870,511
596,704
576,685
211,939
834,020
662,034
1,046,836
3,219.329
321,641
660.125
566.688
666,687
527,757
768,896

Total(32 cities)

219,427,370

211,927,742

+3.5

233,103,688

318,056,923

a Not included In totals.
functioning at present.

b No clearings available. c Clearing House not

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. 7 1934:
GOLD.
The Bank of England gold reserve against notes amounted to £190,with £190,817,659 on the previous
compared
as
ult.,
31st
the
on
902,554
Wednesday.
An event of international importance has to be recorded in the return
of the United States of America to a gold bullion standard. It was announced by President Roosevelt on the afternoon of Jan. 31 that he had
signed a proclamation fixing the gold dollar at 59.06% of its former weight,
thus the new weight of the gold dollar is 15 5-21 grains, .900 fine. Further,
the U. S. Government will now buy gold at $35 per fine ounce less the usual
Mint charges and less 1.1:% for handling charges. The regulations for the
purchase of gold provide for the acquisition of gold imported after Jan. 30
1934 and domestic gold, but make an exception with regard to gold which
has been hoarded contrary to Acts requiring its surrender.
As to the sale of gold, it was announced by the United States Treasury
on Feb. 1 that until further notice gold would be sold for export to foreign
central banks whenever the dollar exchange with the gold standard currencies
reaches the gold export point. The sales will be at $35 per fine ounce
plus 11% handling charges.
As was to be expected, this development occasioned great activity in the
gold market. In view of uncertainties at first existing as to the extent to
which the new regulations would be effective, the official price of gold on
Feb. 1 was based on the French franc, being fixed at 135s. 6d., a quotation
which included a premium of is. 310.; on the following day, however, the
quotation of 1395. 6d. was based more on the dollar than on the franc.
while on other days the price was governed by supply and demand independently of the exchanges.
New high records for the sterling price of gold have been established,
the highest to date being 140s., the quotation of Feb. 5.
In the open market the amounts of gold dealt in during the week have
been extremely large, purchases being mainly for New York. Shipments
arranged for this quarter not only from London but also from the Continent are of very considerable importance.
Quotations during the week:
IN NEW YORK.
IN LONDON
Per
Equivalent Value
Per
Fine Ounce.
of E Sterling.
Fine Ounce.
$35
135s, 6d.
12s. 6.47d.
Feb. 1
$35
12s. 2.16d.
Feb. 2
139s. 6d.
$35
12s. 3.48d.
Feb. 3
138s. 3d.
$35
Feb. 5
140s.
128. 1.64d.
$35
Feb. 6
139s. 3d.
12s. 2.42d.
$35
Feb. 7
1358. 6d.
12s. 5.37d.
$35
Average
138s. 2d.
12s. 3.59d.
The following were the United Kingdom imports and exports of gold
registered from mid-day on the 29th ult. to mid-day on the 5th inst.:
Exports.
Imports.
Norway
E1.417,296 United States of America £510,000
110,988
France
2,716,756 France
146,000
Netherlands
1,056,712 Channel Islands
11,485
Switzerland
85,153 Mettle°
5,150
British South Africa
1,525,090 Other countries
British India
724,060
China
246,407
Hongkong
104,676
Canada
458,917
Australia
13,812
New Zealand
12,811
Ecuador
11,950
Other countries
50.450
E783,623
Total
E8,424,090
Total
Gold shipments from Bombay last week were exceptionally large, amounting to about £2,682,000: of this about £2,643,000 is consigned to London
and E39,000 to Amsterdam.
SILVER.
The feature of the week was the sharp rise in quotations which occurred
on the 3d inst., when 19 15-16d. was fixed for both cash and two months'
deliveries, representing an advance of 11-16d. as compared with the price
of the previous day. The rise was mainly owing to the absence of selling,
so that the market more readily responded to buying orders from China.
The rise proved rather overdone and prices reacted on reselling by speculators, but operators have been rather hesitant in view of the uncertainty
of the market.
New York has generally supported the market and China has sold as
well as bought. Operations on account of the Continent and the Indian
Bazaars have only been moderate.
The following were the United Kingdom imports and exports of silver
registered from mid-day on the 29th ult. to mid-day on the 5th inst.:
Exports.
Imports.
£13,256
E46,400 Syria
Soviet Union (Russia)
24,767
65,081 Iraq
Germany
14.629
17,865 Persia
Australia
2,025
British India
14,000 Other countries
Irish Free State
7,800
Other countries
1,930
£54.677
E153,076
Quotations during the week:
•
IN NEW YORK.
IN LONDON.
(Per Ounce .999 Fine)
-Bar Silver per Oz. Std.
Cash Delis, 2 Mos.' Del.
44 1-16c.
Jan. 31
Feb. 1----19 7-16d.
19 7-164.
43 c.
Feb. 1
Feb. 2---193id.
191(d.
43 c.
Feb. 2
Feb. 3----19 15-16d. 19 15-16d.
44c.
3
Feb.
19 11-16d.
Feb. 5---19Hd.
c.
44
Feb. 5
4d.
Feb. 6....--19 9-16d.
19
c.
Feb. 6
Feb. 7.......19 11-16d. 19(d.
19. 15d.
Average---19.583d.
The highest rate of exchange on New York recorded during the period
from the 1st inst. to the 7th inst. was $5.06 and the lowest $4.87 .
The stocks in Shanghai on the 3d inst. consisted of about 156„000
ounces in sycoe, 345,000,000 dollars and 14,720 silver bars, as compared
with about 157,100.000 ounces in sycee, 345,000,000 dollars and 13,800
silver bars on the 27th ult.
Statistics for the month of January last are appended:
Bar Gold
-Bar Silver per Ounce Std.Cash Delivery. 2 Mos.' Del. per Oz. Fine.
133s. Id.
19 13-16d.
Highest price
19%d.
19;0.
126s. 8d.
lowest price
19 1-16d.
1305. 1.42d.
19.418d.
19.382d.
.14 erase

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.,
Feb. 17. Feb. 19.
Silver, per os_. 204cl.
2044c1.
Gold, p.fine oil. 1358.10d. 1348.9d.
784‘
Consols, 214%
78%
British 344%10234
W.L
10244
British 4%112%
112%
1980-90
French Rentes
88.00
(in Parh03% tr. 88.40
French War L'n
(in Paris)5%
107.20
108.70
1920 amort

Wed.,
Tues.,
Feb. 20. Feb. 21.
2034d.
204“1.
I358.56. 1388.5d.
76%
78 5-18
1044
11234

Fri.,
Thurs.,
Feb. 22. Feb. 23.
20%d.
20%d.
1388.1d. 1388.54d.
7613-16 77%

102%

10244

102%

112%

112%

113

67.50

87.50

Holiday.

68.80

108.80

108.10

Holiday.

106.90

The price of silver in New York on the same days has been:
Silver in N. Y.,
per oz. (eta.)

4634




1349

Financial Chronicle

Volume 138

4654

46

4034

Holiday.

4634

PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
as received by cable each day of the past week have been
as follows:
21 Feb. 22 Feb. 23
Feb. 17 Feb. 19 Feb. 20 Feb.
1934. 1934. 1934. 1934.
Franca. Francs. Francs. Francs.
11,400 11,400 11,300 11,200
Bank of France
1,485 1,462
1,475
1,472
Banque de Paris et Pays Bas
227
223
238
• 234
Banque d'Union Parlaienne
283
283
270
288
Canadian Pacific
20,300 20,300 20,200 20.200
Canal de Suez
2,515 2,530 2,510 2.505
Cie Distr d'Electricitie
1,920 1,910 1,890 1,890
Cie Generale d'Electricitie
34
35
38
38
Cie Generale Transatlantique _ _
408
408
409
404
Citroen B
1,010 1,002
Comptoir Nationale d'Escompte 1,013 1.010
170
180
180
180
Coty SA
279
298
302
302
Courrieres
731
732
742
739
Credlt Commercial de France
2,060 2.040 2,040 2,040
Credit Lyonnais
2,680 2,700 2,720 2,670
Eaux Lyonnais
698
892
692
700
Energie Electrique du Nord_
885
888
893
900
Energie Electrique du Littoral
817
620
620
819
Kuhlmann
760
780
760
780
L'Air Liquids
892
892
872
895
Lyon (P L M)
1,272 1,272 1,250 1,287
Nord RY
888
828
824
828
Orleans RY
55
55
58
58
Pathe Capital
1.088
1.085
1,103
1,092
Pechiney
88.40 68.00 87.50 67.50
Rentes, Perpetuel 3%
77.30 77.00 78.40 78.40
Rentes 4% 1917
78.30 76.10 75.40 75.40
Rentes 4%, 1918
82.90 82.30 81.70 81.70
Rentes 414% 1932 A
82.90 82.40 82.20
83.30
B
1932
%,
Rentes 4%
107.20 108.70 108.80 106.10
Rentes 5%, 1920
1,830 1,830 1,820 1,820
Royal Dutch
1,310 1,309 1,308
1,324
Saint Gobain C dr C
1,580 1,570 1,580 1,540
Schneider dr Cie
58
57
57
58
Ford
Franealse
Societe
83
81
81
81
Societe Generale Fonciere
2,675 2,695 2,809 2,680
Societe Lyonnaise
536
580
530
530
Societe Marseillaise
16,550 16,250
Suez
158
159
prof
Silk
Artificial
Tubize
785
777
-778
774
Union d'Electricitie
95
95
96
96
Wagon-Lila

1934. 1934.
Francs. Francs.
11,300
-igi
20,100
1:1-121:1
31
___

-iia
_

2:8615
2,880
HOLTDAY

-fie'
---.
-iii
-8-8:80
77.40
78.40
82.50
82.90
106.90
1,820
59
---

__......-

THE BERLIN STOCK EXCHANGE.
Closing prices of representative stocks as received by
cable each day of the past week have been as follows:
Feb.
17.
188
Reichsbank (12%)
94
Berliner Handels-Gesellschaft(5%)
53
Commerz-und Privat Bank A 0
Deutsche Bank und Giacomo-Gesellschaft 85
67
Bank
Dresdner
Deutsche Reichsbahn (Ger Rys)prof(7%)_112
30
Allgemeine Elektrizitaets-Gesell(A E G)
126
Berliner Kraft u Licht (10%)
122
Dessauer Gas(7%)
101
Gesfuerel (5%)
115
Hamburg Eiektr-Werke(8%)
149
Siemens & Halske(7%)
133
I G Farbenindustrie(7%)
156
Salzdetturth (744%)
208
Rheinische Braunkohle(12%)
110
Deutsche Erdoel(4%)
68
Mannesmann Roehren
29
Hapag
32
Norddeutscher Lloyd

Feb.
19.
188
94
52
68
67
112
31
128
122
100
115
150
133
157
208
110
68
29
32

Feb. Feb.
21.
20.
Per Cent of Pa
171
170
94
94
51
51
66
86
67
67
113
113
30
30
129
129
121
121
99
99
114
114
150
148
132 133
154
155
205 204
109 110
88
66
28
28
32
32

Feb.
22.
170
94
50
67
67
112
29
128
120
98
114
149
132
154
204
110
67
27
30

Feb.
23.
171
94
51
65
87
113
30
128
121
99
114
150
133
152
205
111
88
28
31

In the following we also give New York quotations for
German and other foreign unlisted dollar bonds as of
Feb. 23 1934:
Anhalt 78 to 1946
Argentine 5%, 1945, $100
pieces
Antioquia 8%, 1948
Austrian Defaulted Coupons
Bank of Colombia, 7%,'47
Bank of Colombia, 7%.'48
Bavaria 844s to 1945
Bavarian Palatinate Cons.
Cit. 7% to 1945
Bogota (Colombia)6%,'47
Bolivia 6%,1940
Buenos Aires scrip
Brandenburg Elec. 8s, 1953
Brazil funding 5%, '31-'51
Brazil funding scrip
British Hungarian Bank
744s, 1982
Brown Coal Ind. Corp.
644s. 1953
Call (Colombia) 7%. 1947
Callao (Peru) 734%. 1944
Ce.tra (Brazil) 8%. 1947.
Columbiascrip
Costa Rica funding 5%,'51
Costa Rica scrip
City Savings Bank. Budapest, 78, 1953
Dortmund Hun Mil 85,'48
Duisburg 7% to 1945
Duesseldorf 78 to 1945._
East Prussian Pr. 8.8, 1953_
European Mortgage & Investment 744s. 1988_ _
French Govt. 544s. 1937_ _
French Nat. Mall SS.88,'52
Frankfurt 78 to 1945
German All Cable 7s, 1945
German Building de Landbank 644%,1948
German defaulted coupons.
German scrip
German called:bonds
Haiti8% 1953
Hamb-Am Line 8)4s to '40
Hanover Harz Water Wks.
8%, 1957
Housing & Real Imp 7s,'46
Hungarian Cent Mut 723.'37
Hungarian Discount dr Exchange Bank 7s, 1983._
I Flat price.

514. Ask.
Ask.
---47 Hungarian defaulted coupe 190
Hungarian Ital Bk 7448,'32 /78
33
30
Jugoslavia 94. 1956
84
44
140
32 Jugoslavia coupons
129
158
1943
844s,
Koholyt
195
-71-.C"
23 Land M 13k, Warsaw 88,'41 85
/21
87
23 Leipzig Oland Pr. 8448.'48 103
121
56
Leipzig Trade Fair 7s, 1953 154
Luneberg Power. Light &
66
/133
Water
7%,
1948
44
Pi0
62
24 _ Mannheim & Palat 78, 1941 160
123
148
50
Munich 7510 1945
Ill
48
142
Bk,
'45
to
7s
Hessen,
-31:1 Munle
125
15512 57 Municipal Gas & Elec Corp
Recklinghausen, 78, 1947 154is
8312
82
64
6312 Nassau Landbank 840,'38 182
162
Natl. Bank Panama 6)4%
42
/40
1948-9
60
157
Nat Central Savings Bk of
81
Hungary 744s. 1982_ _ _ - 158
73
/70
17 National Hungarian dr Ind.
116
81
159
Mtge.7%,1948
f18
17
49
9 Oberpfalz Elec. 7%.1946.- 147
6
33 Oldenburg-Free State 7%
/29
142
46
to 1945
43
41
23
Porto Alegre 7%. 1968--- 121
141
Protestant Church (Ger5012
149
1946
many).
78,
149
59
54 Prey Bk Westphalia 6s,'33 155
152
44 Pros' Bk Westphalia 13s. '38 5512 5812
PIO
73
143
47 Rhine Westph Eleo 7%.'36 170
28
--__ Rio de Janeiro 8%, 1933.. 126
188
67
Rem Oath Church 644s,'48 185
52
59 _ R C Church Welfare 78,'48 150
157
145
Saarbruecken M Bk 85,'47 /79
118.- Salvador 7%,1957
143
1251z 27
42
45 Salvador 7% ctf of dep '57 /2012 22
15
59 Salvador scrip
110
157
Santa Catharina (Brazil),
8%, 1947
69
f2312 25
/88
88 Santander(Colom) 78, 1948 118
17
/84
Sao Paulo (Brazil) (18, 1943 122
23
1191z
_
-56 Saxon State Mtge. 6s, 1947 /87
151
Serbian 58, 1958
- -33
88
30
44
-_ Serbian coupons
40
178
Slum & Halske deb 6s, 2930 /325
345
48 Stettin Pub Util 78, 1948_ 152
142
54
P19
Tucuman City 7s, 1951.__ 130
32
/47
Tucuman Prov. 78, 1950_ _
55
50
44
Vesten Eieo Ry 7s, 1947_ 141
141
Wurtemberg 78 to 1945.... f4812 50
Bid.
144

1350

Financial Chronicle

THE CURB EXCHANGE.
Small price changes and a narrow list were the outstanding characteristics of the curb dealings during most
of the present week. Trading has been quiet and a large
part of the speculative interest centered around the lowpriced issues, and there were occasional periods of irregularity that confined the changes to narrow limits.
On Saturday trading was quiet, but the tone was firm,
though in some divisions of the market, particularly in
the mining and utility stocks, there was a tendency toward
lower levels. Specialties were the favorite trading shares,
though the gains were largely fractional. Small downward
changes were apparent in Aluminum Co. of America, Swift
& Co. and A. 0. Smith, while Tubize Chatillon, Pittsburgh
& Lake Erie and United States Playing.Card were about
a point higher. Electric Bond & Share moved ahead about
a point at its top for the day; Humble Oil made a similar
gain, and Canadian liquor stocks were off. Some profit
taking appeared in the issues that made gains during the
previous days, but this did not materially affect the market
trend. The largest turnover of the session was in Canadian
Marconi, one of the low priced stocks. Oil shares attracted some attention but the gains were small.
Stocks were generally easier on Monday, though there
were a few firm spots scattered through the list. Some of
the market leaders were irregular at the opening of the
session, and while the losses were numerous, the decline was
gradual and the changes small. In the steel group two
prominent issues, Midvale and Midland, advanced about a
point during the morning dealings. Aluminum Co. of
America made fractional progress and outstanding leaders
like Scoville Manufacturing Co., Parker Rust-Proof and
Schiff & Parker were fairly firm. Alcohol stocks, oil shares
and metals were somewhat lower, while mining issues like
Lake Shore Mines, Pioneer Gold and Newmont sagged from
fractions to a point or more. Realizing cropped out in
stocks like Sherwin-Williams, Swift & Co. and Pittsburgh
Plate Glass, and most of the utilities were reactionary. Pan
American Airways lost a point and liquor stocks eased off
moderately.
Curb shares again slipped downward as the market opened
on Tuesday. Considerable irregularity was apparent,
though the dealings were small due to the fact that many
prominent traders were absent on account of the storm.
Electric Bond & Share was down more than a point at times,
though it rallied toward the end of the session. American
Gas & Electric had a small gain and stocks like Niagara
Hudson and United Light & Power were fairly steady around
the previous closing levels. Canadian Marconi, one of the
low-priced shares, was again active and moderate strength
was apparent in Hazeltine, Tung-Sol Lamp and Parker RustProof. In the oil group, Gulf Oil of Pennsylvania yielded
more than a point, Humble Oil moved within a narrow channel and Standard of Indiana continued fairly steady throughout the session. Mining stocks like Lake Shore and
Newmont were in moderate demand, though they made
little progress upward and most of the alcohol issues were
fractionally lower.
The volume of trading was somewhat larger on Wednesday,
though most stocks continued to move within a comparatively
narrow channel. Small advances were recorded in the
specialities group, but irregularity again predominated and
the changes were small. Public utility stocks were generally
easier, small recessions being recorded in American Gas &
Electric, Electric Bond & Share, Niagara Hudson and United
Light & Power A. Metals were off on the day, Bunker HillSullivan yielding about a point, while New York & Honduras
dipped a similar amount. The best feature of the oils was
Gulf Oil of Pennsylvania which forged ahead about a point
at its peak for the day and there was a good demand for
Humble Oil and Standard of Indiana, though prices were
practically unchanged from the previous close. Mining
stocks showed moderate improvement, Aluminum Co. of
American gaining about a point and Lake Shore Mines showed
a modest advance most of the day. Alcohol stocks were
fairly steady, most of the trading centering around Hiram
Walker and Distillers Seagram. In the group of miscellaneous specualties, Parker Rust-Proof and Sherwin-Williams
eased off, while Cord Corporation, Canadian Marconi and
Penmvad Corporation held fairly steady.
Following moderate upward progress during the first half
of the session on Friday, a downward reaction developed




Feb. 24 1934

that carried most of the popular stocks to lower levels.
The weak spot was the automobile accessories group, which
sold down all along the line. Public utilities were soft and
there was considerable weakness apparent in parts of the
oil list. Some buying was in evidence in the alcohol stocks,
particularly in the Canadian issues which scored modest
gains. Hiram Walker did not do so well and eased off before
the close. In the industrial group Aluminum Co.of America
3 but lost its gain before the close. The
moved up to 74%
range of prices for the week was generally toward lower
levels, stocks closing on the side of the decline including
among others, Aluminum Co. of America, 75 to733; American Gas & Electric, 31% to 293.; American Laundry Machine, 15 to 14; American Light & Traction, 18% to 173/3;
American Superpower,4 to 39s; Associated Gas & Electric A,
15
3 ;Central States Electric,
% to 13/3; Atlas Corp.,14% to 13%
3 Commonwealth Edison,
2 to 13/3; Cities Service, 33/3 to 3%;
573/3 to 54; Cord Corp., 73/3 to 7; Electric Bond & Share, 21
7 to 73; Hudson Bay
to 183/3; Gulf Oil of Pennsylvania, 74%
Mining, 10% to 103/3; International Petroleum, 22% to
223/3; New York Tel. pref., 1173/3 to 117; Niagara Hudson
3 Parker Rust-Proof, 703/3 to 683/3; PennPower, 73/3 to 7%;
3 to 3%;
5 A.0. Smith, 413/3 to 393
road Corp., 3%
4;Standard
Oil of Indiana, 313/3 to 303/3; Swift & Co., 18% to 163
%;
Teck-Hughes, 53/3 to 53/3; United Founders, 13/3 to 13/3;
United Gas Corp., 33/3 to 3, and United Light & Power A,
4% to 4%.
A complete record of Curb Exchange transactions for the
week will be found on page 1377.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Week Ended
Feb. 23 1934.
Saturday
Monday
*Tuesday
Wednesday
Thursday
Friday
Total
$'I at
New York Curb
Exchange.
Stocks-No, of shares
Bonds.
Domestic
Foreign government.
Foreign corporate__ _

Stocks
(Number
Of

Shares).

Bonds (Par Value).
Foreign
Foreign
Domestic. Government. Corporate.

289,275 $2,404,000
401,315 4,286.000
221,440 3,559,000
352,381 3,728,000
413.165

$130,000
318,000
155,000
204,000
HOLIDAY
4,330,000
151,000

1,657,556 $18,307,000

$694,000

178,000
102,000
143,000

3,816,000
4,075,000

206,000

4,687,000

8958,000 $19,959,000
Jars. 1 to Feb. 23.

Week Ended Feb. 23.
1934.

Total.
$2,601,000

1934.

1933,

1983.

658,883

18,310,050

5,025,564

$18,307,000 $16,883,000
694,000
565,000
781,000
958,000

$179,220,000
8,283,000
7,954,000

$149,758,000
8,503,000
8,515,000

Total
$19,959,000 $18,229,000
$195,457,000
*Exchange opened at II a. m. because of heavy snowstorm.

$164,776.000

1,857,558

gounnercialand RAWcellantonsgjtwe
National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
CHARTERS ISSUED.
Feb. 10-Berwyn National Bank, Berwyn, Pa
President, Wm.H.Fritz, Cashier, John C. Acker. Will
succeed No. 3945, The Berwyn National Bank,
Berwyn. Pa. .
Feb. 12-The Commercial National Bank of Little Rock, Little
Rock, Ark
President. A. E. McLean. Cashier. C. E. Crossland.
Conversion of The Bankers Commercial Trust Co.,
Little Rock, Ark.
Feb. 12-First National Bank in Clatskanie, Clatskanie, Ore
Capital stock consists of $25,000 common stock and
825,000 preferred stock. President, W. T. Evanson.
Cashier. H. B. Hager. Will succeed No. 11758, The
First National Bank of Clatskanie, Ore.
Feb. I3-The Tygarts Valley National Bank of Elkins, Elkins,
W. Va
Capital stock consists of $100,000 common stock and
850,000 preferred stock. President, Frederick H.
Barron. Cashier, E. M. M. Morris. Will succeed No.
4718, The Elkins National Bank, and No. 8376, The
Peoples National Bank of Elkins. W. Va.
Feb. 14-The First National Dank at Orlando, Orlando, Fla
Capital stock consists of $100,000 common stock and
$100,000 preferred stock. President, W. T. Bland.
Cashier, Linton E. Allen. Will succeed No. 10066.
First National Bank & Trust Co.in Orlando, Fla.
Feb. 14-Packers National Bank in Omaha, Omaha,Nob
Capital stock consists of $100,000 common stock and
$100,000 preferred stock. President, J. F. Coed.
Cashier, F. J. McCauley. Will succeed No.4589. The
Packers National Bank of South Omaha,Omaha,Neb.
Feb. 15-The First National Bank in Durant, Durant, Okla
Capital stock consists of $40,000 common stock and
$60,000 preferred stock. President, L. F. Lee.
Cashier, Dial Currin. Will succeed No. 5129, The
First National Bank of Durant. Olda.
Feb. 15-National Bank of Clementon, Clementon, N.J
President, Joseph R. Powell. Cashier. Alfred J. ware.
Will succeed No. 11147, The Clementon National
Bank, Clementon, N. J.
Feb. 15-Bethlehem National Bank, Bethlehem, Pa
Capital stock consists of $200,000 common stock and
$200,000 preferred stock. President, 8. L. Caum.
Cashier, Weir Jepson. Will succeed No. 3961. The
Bethlehem National Bank, Bethlehem, Pa.
Feb. 16-First National Bank in DeKalb, DeKalb.Ill
Capital stock consists of $50,000 common stock and
75,000 preferred stock. President, Paul A. Nehring.
Cashier. F. 0. Crego. Will succeed No. 2702, The
First National Bank of DeKalb, Ill.

Capital.
$60,000

300,000

50,000

150,000

200,000

200,000

100,000

50,000

400,000

125,000

Volume 138

Capital.
CHANGE OF TITLE.
Feb. 13—The National Bank & Trust Co.of Jamestown, N.Dak.,
to "The National Bank of Jamestown.'
VOLUNTARY LIQUIDATIONS.
8300,000
Feb. 12—The First National Bank of Bellaire, Bellaire, Ohio
Effective Jan. 2 1934. Liq. Agent, J. F. Mellott, Bellaire. Ohio. Succeeded by "First National Bank in
Belire" Ohio. Charter No. 13914.
Feb. 13—The National Spraker Bank of Canajoharie,Canajoharie,
100,000
N.Y
Effective Feb.8 1934. Liq. Agent, B.F. Spraker, Canajoharie, N. Y. Succeeded by the "National Spraker
Dank in Canajoharle." Charter No. 13876.
80,000
Feb. 13—The Farmers & Mechanics Nat. Bank of Mercer, Pa_
Effective Feb. 8 1934. Liq. Committee, H. G• McClellan. J. A. Stranahan and Wm.T. McCoy. care of
the liquidating bank. Succeeded by The Farmers
National Bank of Mercer,Pa. Charter No.13846.
Feb. 13—The First National Bank of Albuquerque, Albuquerque,
400,000
New Mexico
Effective Feb.7 1934. Liq. Agent,J. M.Raynolds,care
of the liquidating bank. Succeeded by "First National
Bank in Albuquerque." Charter No. 13814.
50.000
Feb. 13—The First National Bank of Albion, Albion,Pa
Effective Feb.61934. Liq. Agent, C. G.Cherry,care of
the liquidating bank. Succeeded by "First National
Bank at Albion." Charter No. 13871.
Feb. 13—The Grays Harbor National Bank of Aberdeen, Aberden,
200,000
Wash
Effective Jan. 291934: Liq. Agent. W.H.Tucker, care
of the liquidating bank. Absorbed by The National
Bank of Commerce of Seattle, Wash. Charter No.
4375.
25,000
Feb. 14—The First National Bank of Parkton, Parkton, Md
Effective Feb. 12 1934. Liq. Agent, John Mays Little,
Parkton, Md. Succeeded by "The First National
Bank in Parkton." Charter No. 13867.
Feb. 14—The National Bank & Trust Co. of North Kansas City.
50,000
•
North Kansas City, Mo
Effective Jan.30 1934. Liq. Agent, Nathan Rieger, care
of the liquidating bank. Succeeded by The National
Bank in North Kansas City, Mo. Charter No. 13690.
100,000
Feb. 15—The First National Bank of Haddon Heights, N.J
Effective Feb. 14 1934, Liq. Committee, Board of
directors of the liquidating bank. Absorbed by First
Camden National Bank & Trust Co.. Camden, N. J.
Charter No. 1209.
Feb. 16—The New Florence National Bank, New Florence, Pa_
25,000
Effective Feb. 15 1934. Liq. Agent, J. M. Trimble.
New Florence. Pa. Succeeded by "New Florence National Bank" New Florence, Pa. No. 13907.
BRANCHES AUTHORIZED.
Feb. 16—The Anglo California National Bank of San Francisco,
Calif. Location of branch. No. 2250 Chestnut St.,
San Francisco, Calif. Certificate No. 968A.
Feb. 14—First National Bank of Seattle, Seattle, Wash. Location
of branch, at the northeast corner of First and Myrtle
Sts., Mount Vernon, Skagit County, Wash. Certificate No. 969A.
Feb. 15—The Hackley Union National Bank of Muskegon,
Muskegon, Mich. Location of branch, No. 9 West
Broadway, Muskegon Heights. Muskegon County.
Mich. Certificate No. 970A.

Auction Sales.—Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Jersey City, Boston, Philadelphia and Buffalo
on Wednesday of this week:
By Adrian H. Muller & Son, New York:
Shares.
per Share.
Stocks.
Certificate of deposit for $100,000 face amount prior lien mtge. 20-year 6%
gold bonds due July 1 1946, Chicago Springfield & St. Louts Ry.. with
July 1 1928 and all sub. maturing coup. attached, deposited under Deposit
Agreement dated as of July 15 1930, copy of which is lodged with Chase
Nat. Bank of City of N. Y., depositary, and 250 shs. Railway Security
Corp.(Del.). no par
$1,000 lot

By Adrian H. Muller & Son, Jersey City, N.
Shares.
Per Sh.
Stock.
20 Acme Coal Mining Co.(Pa.), par $10;55 Diamond King Mining Co.(S.D.),
Dar $10; 10 Ftlede Globe Tower Co.(Ariz.), par $10; 10 Friede Globe Tower
Co., pref.; 106 Midland 011 Co., Inc. (Va.), par $100; 100 Mitchell Mining
Co.(Ariz.), par $10; 50 New York Metal Ceiling Co., pref., par $10
$5 lot
20 Philadelphia Life Insurance Co.(Pa.), par $10
$27101
5Stephen M „Smith Co.(N. Y.), par $100
$5 lot

By R. L. bay & Co., Boston:
Shares.
Stocks.
$ per Share.
1 York Manufacturing Co., par $100
455
98 Talbot Mills, par $100
103
50 Fall Alpaca Co., Par $50
33
25 Naumkeag Steam Cotton Co.. Par $100
61
20 Pelzer Mfg.Co. v.t. o.. par $5;20 New England Southern Corp. corn.; 2 New
England Southern Mills;500 Eureka Mines Co.corn.. par $1;50 Consol. Cape
Cod Cranberry Co. pref.. Dar $10; 25 Consul. Cape Cod Cranberry Co. corn.,
par $10;35 United Copper Co.com., par $100;40 United Wireless Teleg. Co.
pref., par $10; 500 United Mining & Holding Co., par $1; 400 Delhi mines
Co., par $1; 500 Dividend Mining dr Milling Co. corn.. par $1: 550 Frank
Siddalls Soap Co., par $1
$570 lot
14 Ocean Spray Preserving Co., pref., par $100
2035
1 Boston Athenaeum, par 5300
400
3,332 Jackson's Inc.,common class B. par $5
$100 lot

By Barnes St Lofland, Philadelphia:
Stocks.
Shares.
251Germantown Trust Co., par $10
5 Provident Trust Co.. par $100
75 Penna. Co. for Ins. on Lives & Granting Annuities, par $10
10 Girard Trust Co., par $10
15 Northern Liberties Gas Co., par 525
1 Pennsylvania Academy of the Fine Arts, par MO
1 Second dr Third Streets Pass. Ry. Co.. Par $50
21 Philadelphia Bourse, preferred, par $25
50 Camden Fire Insurance Association, par $5
Bonds—
$1,000 Lukens Steel Co. 5% first extended, May dr Nov., due 1955
$1,000 Sevilla Court Apartments 535s, 1933

$ per Share.
163(
358
31
7435
33
10
623.4
18
1735
Per Cent.
52
25

By A. J. Wright & Co., Buffalo:
Stocks.
Shares.
10 Zenda Gold Mines

per Share.
50.15

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:




1351

Financial Chronicle
Name of Company.

When
Per
Share. Payable.

Books Closed
Days Inclusive.

Railroads (Steam).
700 Apr. 2 Holders of rec. Mar. 8
Chesapeake & Ohio common (quar.) -533.4 July 1 Holders of rec. June 8
Preferred (semi-ann.)
$1.10 Mar. 10 Holders of rec. Feb. 26
Columbus & Xenia
8755cMar.10 Holders of rec. Feb. 28
Erie dr Pittsburgh
Mar. 1 Holders of rec. Feb. 20
Fort Wayne & Jackson 534% pref. (8.-13.)
$155 Mar. 5 Holders of rec. Feb. 20
Germantown & Norristown
50c Mar. 10 Holders of rec. Feb. 24
Little Miami,spec. gtd.(quar.)
$1 Mar. 10 Holders of rec. Feb. 24
Original gtd.(quar.)
New York Lackawanna & Western (qu.)_ 5134 Apr. 2 Holders of rec. Mar. 14
51% Apr. 16 Holders of rec. Apr. 4
Warren (s-a)

$234

Public Utilities.
Amer. Pow.& Lt. Co. $8 pref. (quar.)-$5 preferred
American Tel. & Tel. Co. (quar.)
Atlantic dr Ohio Tel. (quar.)
Brooklyn & Queens Transit pref.(qu.)
Can. Western Nat. Gas, Lt., Ht.& Power preferred (quar.)
Central Illinois Light Co.6% pref.(qu.).
7% preferred (quar.)
Chicago Dist. Elec. Gen. $6 pref.(qu.)
Consol. Gas of N.Y.,5% pref.(quilt.)-.
Detroit City Gas pref. (quar.)
Empire Power Corp.$8 prof.(quar.)---Gold dr Stock Tel. (quar.)
Indiana Hydro-Electric Power Co
Interocean Telep. Co. (guar.)
Ironwood Sr Bessemer Ry.er Lt., pf.(qu.)
Kansas City Pow.er Lt. 1st pref. (qu.)....
KingsCounty Lighting (guar.)
7% preferred (guar.)
6% preferred (guar.)
5% preferred (guar.)
Lake Superior District Power Co.
6% cum. pref. (quer.)
7% cum. pref. (quar.)
Lone Star Gsa Corp. common (quar.)_
% cony. preference (quar.)_
Long Island Lighting Co.7% pref.(qu.)_
6% preferred (quar.)
Milwaukee Gas Light, 7% Pr. A (qu.)..
Nassau dr Suffolk Ltg., pref. (quar.)New England Gas dr Electric Aeon.—
g534 preferred (quar.)
New England Tel. dr Tel. Co
New York dr Queens El. Lt. bc P.(quer.)
Preferred (guard
New York Steam.$7 pref.(guar.)
$6 preferred (guar.)
Northwestern Utilities, 6% pref. (quar.)
Pennsylvania Water & Power Co.—
Common (quar.)
Preferred (quar.)
Public Service Electric dt Gas Co.7% preferred (quar.)
$5 preferred (guar.)
Queensborough Gas & Elec..6% pf.(qu.)
Southern dr Atlantic Telegraph (s.-a.)
United Gas At Elec. Corp., prof. (guar.)
Wisconsin Power dr Light Co.
6% preferred (guar.)
7% preferred (quar.)
Wisconsin Public Service Corp.7% preferred (quar.)
634% Preferred(quar*
6% preferred (quar.) )

3734e
3134e
$234
5134
$134

Apr. 2 Holders of rec. Mar. 7
Apr. 2 Holders of rec. Mar. 7
Apr. 16 Holders of rec. Mar. 15
Apr. 2 Holders of rec. Mar. 17
Apr. 2 Holders of rec. Mar. 15

$134
%
134%
$135
5134
$134
$135
$135
8755c
3134
5134
5134
$135
$155
$135
$134

Mar. 1 Holders of rec. Feb. 15
Apr. 2 Holders of rec. Mar. 15
Apr. 2 Holders of rec. Mar. 15
Mar. 1 Holders of rec. Feb. 15
May I Holders of rec. Mar. 20
Mar. 1 Holders of rec. Feb. 23
Apr. 1 Holders of rec. Mar. 15
Apr. 2 Holders of rec. Mar.31
Mar,15 Holders of rec. Feb. 28
Apr. 2 Holders of rec. Mar. 31
Mar. 1 Holders of rec. Feb. 17
Apr. 1 Holders of rec. Mar. 14
Apr. 2 Holders of rec. Mar. 19
Apr. 2 Holders of rec. Mar. 19
Apr. 2 Holders of rec. Mar. 19
Apr. 2 Holders of rec. Mar. 19

$135
3134
J 160
$134
3134
$135
5134
3134

Mar. 1 Holders of rec. Feb. 17
Mar. 1 Holders of rec. Feb. 17
Mar. 31 Holders of rec. Mar. 12
Mar. 31 Holders of rec. Mar. 12
Apr. 1 Holders of rec. Mar. 15
Apr. 1 Holders of rec. Mar. 15
Mar. 1 Holders of rec. Feb. 25
Apr. 1 Holders of rec. Mar. 15

$155
$134
$2
3134
3134
3134
$154

Apr. 1 Holders of rec. Feb. 28
Mar. 31 Holders of rec. Mar. 9
Mar. 14 Holders of rec. Mar. 2
Mar. 1 Holders of rec. Feb. 23
Apr. 2 Holders of rec. Mar. 15
Apr. 2 Holders of rec. Mar. 15
Mar. 1 Holders of rec. Feb. 24

750 Apr. 2 Holders of roe. Mar. 15
El% Apr. 2 Holders of rec. Mar. 15

$134
5134
3134
6235c
%

Mar. 31 Holders of rec. Mar. 1
Mar. 31 Holders of rec. Mar. 1
Apr. 2 Holders of rec. Mar. 15
Apr. 2 Holders of rec. Mar. 16
Apr. 1 Holders of rec. Mar. 15

3734e Mar. 15 Holders of rec. Feb. 28
43550 Mar. 15 Holdres of rec. Feb. 28
$134 Mar. 20 Holders of rec. Feb. 28
3134 Mar.20 Holders of rec. Feb. 28
$135 Mar. 20 Holders of rec. Feb. 28

Fire Insurance.
$235 Mar. 1 Holders of rec. Feb. 13
American Drug Fire Insurance
30c Mar. 1 Holders of rec. Feb. 18
Great Eastern Fire Ins. Co. (initial)
Title Ins. Corp. of St. Louis (quar.)_.. 1255c Feb. 28 Holders of rec. Feb. 19
Miscellaneous.
$I% Mar. 31 Holders of rec. Mar.15
Adams Express Co., pref. (quar.)
5o Apr. 1 Holders of rec. Mar. 16
Affiliated Products, Inc.(mo.)
20 Mar. 1 Holders of rec. Feb. 15
American Business Shares
h75e Mar. 15 Holders of rec. Mar. 1
American Capital Corp., $3 pref
85135
Feb. 27 Holders of rec. Feb. 20
American Fork & Hoe Co., Prof
735c Mar. 1 Holders of rec. Feb. 20
American Investors of Ill.. B (guar.)-25c Mar. 15 Holders of rec. Mar. 5
American News Co.(hi-mo.)
Armour of Delaware, 7% pref. (quar.)-- $134 Apr. 2 Holders of rec. Mar. 10
$1 Mar. 31 Holders of rec. Mar. 21
Associates Investment, com.(quar.)_.
$134 Mar. 31 Holders of rec. Mar. 21
$7 preferred (Qum.)
500 Feb. 28 Holders of rec. Feb. 15
Balfour Building, v. t. c. (guar.)
$155 Apr. 2 Holders of rec. Mar. 4
Beatrice Creamery Co., pref.(quar.)750 Apr. 2 Holders of rec. Mar. 12
Beech-Nut packing Co., com. (quar.)
3% Mar. 1 Holders of rec. Feb. 23
Bird-Archer Co.. corn
Mar. 1 Holders of rec. Feb. 23
h$8
Preferred
851 Mar. 26 Holders of rec. Mar. 20
Bridgeport Machine Co., pref
851 Mar. 1 Holders of rec. Feb. 26
Preferred
200 Apr. 2 Holders of rec. Mar. 15
British American Oil Co.(guar.)
100 Mar. 31 Holders of rec. Mar. 1
British-Amer. Tobacco, interim (quar.)
an Apr. 26 Holders of rec. Mar. 12
w235
Burma Corp., Ltd., Am.dep.roe.(inter.)
50c Apr. 2 Holders of rec. Mar. 22
California Ink Co. (quar.)
250 Mar. 26 Holders of rec. Mar. 10
California Packing Corp.. com
$2 Apr. 3 Holders of rec. Mar. 15
Canada Permanent Mtge.(quar.)
$1 Apr. 4 Holders of rec. Mar. 18
Canadian Cottons, Ltd., corn. (guar.).$134 Apr. 4 Holders of roe. Mar. 16
Preferred (guar.)
250 Mar. 5 Holders of rec. Feb. 26
Castle (A. 5a.) dr Co.. common
834 Mar. 15
Chadwick-Hoskins, 8% preferred
620 Apr. 2 Holders of roe. Mar. 8
Chesapeake Corp., corn. ((War.)
25e Mar.30 Holders of rec. Mar. 20
Chicago Flexible Shaft Co.. corn. (qu.)
Christiana Securities.7% pref. (quar,)..- 51% Apr. 2 Holders of rec. Mar.20
$3 Mar. 1 Holders of rec. Feb. 15
Cincinnati Wholesale Grocery(au)
$135 Apr. 2 Holders of rec. Mar. 15
1% preferred (quar.)
25c Mar.31 Holders of rec. Mar. 10
Commercial Credit Co., corn.(quar.)...
3134 Mar.31 Holders of rec. Mar. 10
634% preferred (quar.)
4355o Mar.31 Holders of rec. Mar. 10
7% preferred (guar.)
50c Mar. 31 Holders of rec. Mar. 10
8% preferred (quar.)
75e Mar. 31 Holders of rec. Mar. 10
$3 class A cony. pref. (guar.)
Commercial Investors Trust Corp.—
50c Apr. 1 Holders of rec. Mar. 50
Common (quar.)
Preference stock (quar.)
05134 Apr. 1 Holders of rec. Mar. 5a
Continental Gin 6% pref. (quar.)
$134 Apr. 2 Holders of rec. Mar. 15
Creameries of America, pref. A (quar.). 8735c Mar, 1 Holders of rec. Feb. 10
Crown Cork International Corp.. cl. A_ _ h 500 Mar.30 Holders of rec. Mar. 5
Crown Willamette Paper,$7 pref.(qu.) $1 Apr. 1 Holders of rec. Mar. 13
h 750 Apr. 2 Holders of rec. Mar. 20
Curtis Publishing Co.,$7 pre
Daniels & Fisher Stores, 634% Pf. (qu.) $155 Mar. 1 Holders of rec. Feb. 17
De Long Hook & Eye Co.(quar.)
76e Apr. 1 Holders of rec. Mar.20
Dominguez 011 Fields (monthly)
15o Mar. 1 Holders of rec. Feb. 23
Douglas Aircraft Co.(s-a)clic,
.omitted.
Duplan Silk Corp., pref. (quar.)
$2 Apr.
E. I. du Pont de Nemours & Co.—
500 Mar. 15 Holders of rec. Feb. 28
Common (quar.)
$135 Apr. 25 Holders of rec. Apr. 10
Debenture stock (quar.)
25e Apr. 2 Holders of rec. Mar. 20
Elec. Controller dr Mfg.(guar.)
Electric Storage Battery. corn. (guar.)-50c Apr. 2 Holders of rec. Mar. 10]
50c Apr. 2 Holders of rec. Mar. 10
Preferred (quar.)
37c35 Mar. 2 Holders of rec. Feb. 23
El Dorado Oil Works (guar.)
5o Mar.30 Holders of rec. Mar. 15
Falconbridge Wick
5%
Flat Company
50c Mar. 1 Holders of rec. Feb. 19
Florence Stove (quar.)
$155 Mar. 1 Holders of rec. Feb. 19
Preferred (guar.)
25e Mar. 15 Holders of rec. Mar. 8
Foundation Co.of Canada,interim
$135 Mar. 15 Holders of rec. Mar. 5
Garnewell Co.. Prof. (Qum.)
25e Apr. 1 Holders of rec. Mar. 10
General Ry. Signal Co., corn. (quar.).
$155 Apr. 1 Holders of rec. Mar. 10
Preferred (guar.)
$135 Mar. 31 Holders of rec. Mar. 17
Gold Dust Corp., $6 pref. (quar.)
25o Apr, 2 Holders of rec. Mar. 14
Grant(W.T.) Co., corn. (quar.)
$100 Mar. 31 Holders of rec. Mar. 10
Group No. I Oil Corp.(guar.)

1352
Name of Company.

Financial Chronicle
Per
When
Share. Payable.

Books Closed
Days Inclusive.

Miscellaneous (Concluded).
Hamilton United Theatres. pref. (quar.) $13( Mar. 31 Holders of rec. Feb. 28
Ilammermill Paper, 6% pref. (quar.)--- $134 Apr. 2 Holders of rec. Mar. 15
Hawallan Sugar Co.(mo)
600 Apr. 15 Holders of rec. Apr. 5
Heyden Chemical Corp. (quar.)
250 Mar. I Holders of roe. Feb. 23
Extra
100 Mar. 1 Holders of rec. Feb. 23
Preferred (guar.)
$13( Apr. 2 Holders of rec. Mar. 20
ThramWalker-Gooderham & Worts (111.)
25c Mar. 15 Holders of roe. Feb. 28
Honolulu 011
250 Mar. 15 Holders of rec. Mar. 5
Hoskins Mfg. Co.(quar.)
25.3 Mar. 26 Holders of rec. Mar. 10
Humble 011 & Refining, new (quar.)
250 Apr. I Holders of rec. Mar. 2
Humbolt Malt& Brew,A
2% Apr. 1 Holders of me. Mar. 31
Imperial Oil, Ltd., ord. reg. (quar.)---- 1234o Mar. 1 Holders of rec. Feb. 9
Coupon (quar.)
1230 Mar. 1
Industrial Rayon Corp.(guar.)
$13( Apr. 1 Holders of rec. Mar. 15
InsuranceShares Certificates
50 Apr. 20 Holders of rec. Mar. 12
International Petroleum Co
r28o Mar. 15 Holders of rec. Feb. 28
Katz Drug Co., corn. (guar.)
50c Mar. 15 Holders of rec. Feb. 28
$1% Apr. 2 Holders of rec. Mar. 15
Preferred (guar.)
Keystone Steel & Wire Co., pref
h$13( Mar. 15 Holders of rec. Mar. 5
Kimberly-Clark Corp.. 6% pref. ((Mar.) $134 Apr. 2 Holders of rec. Mar. 12
Koppers Gas & Coke. pref. (quar.)
$1
Apr. 2 Holders of rec. Mar. 12
Lake Shore Mines. Ltd.(War.)
50.3 Mar. 15 Holders of rec. Mar. 1
Liggett & Myers Tobacco. Pref. (fluar.)- $IX Apr. 2 Holders of rec. Mar. 12
Loew's, Inc.,corn.(guar.)
250 Mar. 31 Holders of rec. Mar. 15
Lord & Taylor Co., corn.(guar.)
$234 Apr. 2 Holders of rec. Mar. 17
Mayflower Associates (quar.)
500 Mar. 15 Holders of rec. Mar. 1
McClatchy Newspaper,7% pref.(quar.)_ 433133 Feb. 28 Holders of rec. Feb. 26
McCohan(W.J.) Sugar Ref.& Molasses
Preferred (guar-)
$144 Mar. 1 Holders of rec. Feb. 20
Mercantile Amer. Realty 6% pref.(qu.)_
$134 Apr. 15 Holders of rec. Apr. 15
Mesta Machine Co.common (quar.)250 Apr. 2 Holders of rec. Mar. 16
Preferred (guar.)
$134 Apr. 2 Holders of me. Mar. 16
Mock. Judson, Voehringer corn.(qu.)500 Mar. 12 Holders of rec. Mar. 5
Monarch Knitting 7% Preferred
511 Apr. 2 Holders of rec. Mar. 15
Montreal Cottons, Ltd., pref.(quar.)- - $13( Mar. 15 Holders of rec. Feb. 28
National Lead Co., common (quar.)---- $13( Mar. 31 Holders of rec. Mar. 16
Class 13 preferred (quar.)
$134 May 1 Holders of rec. Apr. 20
Newark & Bloomfield (s-a)
$1.34 /Apr. 2 Holders of roe. Mar. 24
New Bedford Cordage, prof.(quar.)---- El% Mar. 1 Holders of rec. Feb. 21
North American Co. prof. (guar.)
750 Apr. 2 Holders of rec. Mar. 5
Common (qua?.)
1230 Apr. 2 Holders of rec. Mar. 5
Common (quar.)
11% Apr. 2 Holders of roe. Mar. 5
North Central Texas 011 pref.(quar.)
$134 Apr. 2 Holders of rec. Mar. 10
Oxford Paper preferred A
55134 Mar. 1 Holders of rec. Feb. 15
Package Mach. Co. (quar.)
2543 Mar. 1 Holders of rec. Feb. 20
Page-Hersey Tubes common (guar.)---750 Apr. 2 Holders of rec. Mar.20
Preferred (guar.)
$13( Apr. 2 Holders of rec. Mar. 20
Paraffine Cos. (guar.)
500 Mar. 27 Holders of rec. Mar. 17
Paton Mfg. Co., Ltd., 7% pref.(quar.). $13( Mar. 15 Holders of rec. Feb. 28
Penney (J. C.) Co., common (quar.)
30e Mar.31 Holders of rec. Mar.20
Preferred (guar.)
$134 Mar.31 Holders of rec. Mar.20
Peoples Drug Stores common (quar.)._
250 Mar. 15 Holders of rec. Mar. 1
Preferred (guar.)
El% Mar. 15 Holders of me. Mar. 1
Perfection Stove Co.(War.)
300 Mar. 30 Holders of roe. Mar. 20
Pet Milk Co. common (guar.)
250 Mar. 31 Holders of rec. Mar. 12
7% preferred (guar.)
$13( Mar. 31 Holders of rec. Mar. 12
Pioneer Gold Mines of Brit. Col. (guar.) r15c Apr. 2 Holders of roe. Mar. 3
Pirelli Co. of Italy (annual)
10%
Bonus
5%
Powell River. 7% pref
$13( Mar. 1
7% preferred
$13( June 1
7% preferred
$13( Sept. 1
7% preferred
$13( Deo. 1
Pratt & Lambert, Inc., corn.(quar.)---250 Apr. 2 Holders of rec. Mar. 15
Pratt Food (quar.)
:3 Mar. 1 Holders of rec. Feb. 19
Rapid Electrotype
100 Mar. 15 Holders of rec. Mar. 1
Raybestos-Manhattan. Inc
250 Mar. 15 Holders of rec. Feb. 28
Reliance Grain 634% prof.(guar.)
$1,4 Mar. 15 Holders of rec. Feb. 28
Schiff Co. common (quar.)
50o Mar. 15 Holders of roe. Feb. 28
Preferred (guar.)
El% Mar. 15 Holders of rec. Feb. 28
Scottish Type Investors A & B (quar.)._
So Mar. 31 Holders of rec. Feb. 28
Second Internat. Secur. 1st prof. (quar.)
500 Apr. 2 Holders of rec. Mar. 15
Sylvanite Gold Mines (guar.)
235c Mar.31 Holders of rec Mar. 1
Sylvania Industrial Corp.(guar.)
250 Mar. 15 Holders of rec. Mar. 1
Texas Corp. (guar.)
250 Apr. 1 Holders of rec. Mar. 2
Texon 011 & Land Co. (quar.)
150 Mar. 31 Holders of rec. Mar. 10
Todd Shipyards Corp. (quar.)
250 Mar. 20 Holders of rec. Mar. 5
Twentieth Century Fixed Trust Shares. 4.313c Mar. 1
United States Banking (monthly)
70 Mar. 1 Holders of rec. Feb. 17
United States Foil Co. common A & B
123ic Apr. 2 Holders of rec. Mar. 15a
Preferred (guar.)
$13i Apr. 2 Holders of rec. Mar. 15a
Veeder Root. Inc
300 Mar. 1 Holders of roe. Feb. 20
Victor-Monoghan (qua?.)
$1 Mar. 1 Holders of rec. Feb. 20
Preferred (quar.)
$13( Apr. 1 Holders of rec. Mar. 20
Welch Grape Juice Co. pref. (qual.).
$13( Feb. 28 Holders of rec. Feb. 15
Western Canada Flour Mills 6% pf.(qu.)
75e Mar. 15 Holders of rec. Feb. 28
Westmoreland, Inc. (quar.)
300 Apr. 2 Holders of roe. Mar. 15
Wilcox-Rich Corp., el. A
6234c Mar. 31 Holders of rec. Mar. 20
Petroleum Co (quar.)Wodley
f 10% Mar. 31 Holders of rec. Mar. 12
Common
100 Sept. 30 Holders of roe. Sept. 15
Yale & Towne Mfg.Co. (guar.)------160 Apr. 2 Holders of rec. Mar. 16

Below we give the dividends announced in previous weeks
and notiet paid. This list does not include dividends an-fiiiveeli,-these being given in the preceding table.
nounced th
Name of Company
Railroads (Steam).
Alabama Great Southern. pre!
Atlanta & Charlotte Air Line (s.-a.)
Bangor de Aroostook. common
Preferred
Chestnut Hill(quar.)
Cincinnati N.0.& Texas Pacific
6% Preferred (guar.)
Cincinnati Union Terminal,4% pf.(qu.)
4% preferred (qua?.)
4% preferred (qua?.)
4% preferred (quar.)
Cleveland & Pittsburgh, reg.gtd.(guar.)
Registered guaranteed (quar.)
Registered guaranteed (quar.)
Registered guaranteed (quar.)
Special guaranteed (quar.)
Special guaranteed (quar.)
Special guaranteed (quar.)
Special guaranteed (quar.)
Columbus & Xenia
Dayton & Michigan (s-a)
8% preferred (quar.)
Detroit Illilsdale & S'western (s-a)
Hartford & Connecticut West., pf.(5.-a.)
Lackawanna RR.of N.1,4% prof.
N.Y.Lackawanna,5% gtd.(quar.).___
Norfolk & Western. oom.(qua?.)
Extra
North Pennsylvania (quar.)
Northern RR of NJ,4% ad (quar.)
4% guaranteed ((VW.)
4% guaranteed (quar.)
4% guaranteed (quar.)
Pittsburgh Youngstown & Ashtabula7% preferred (qual.)
7% preferred (qual.)
7% preferred (qual.)
7% preferred (quar.)




Per
When
Share. Payable.

Books Closed
Days Inclusive.

3%
6414
650
13'%
750

Feb. 27 Holders of roe. Jan. 22
Mar. 1 Holders of roe. Feb. 20
Apr. 2 Holders of roe. Feb. 28
Apr. 2 Holders of rec. Feb. 28
Mar. 5 Holders of rec. Feb. 20

six
six
six

Mar. 1 Holders of me. Feb. 15
Apr. 1 Holders of rec. Mar.20
July 1 Holders of rec. June 20
Oct. 1 Holders of rec. Sept.20
Janl'35 Holders of rec. Dee. 20
Mar. 1 Holders of rec. Feb. 10
June 1 Holders of rec. May 10
Sept. 1 Holders of rec. Aug. 10
Dec. 1 Holders of rec. Nov. 10
Mar. 1 Holders of rec. Feb. 10
June 1 Holders of roe. May 10
Sept. 1 Holders of roe. Aug. 10
Dec. 1 Holders of me. Nov. 10
Mar.10 Holders of rec. Feb. 28
Apr. 2 Holders of rec. Mar. 15
Apr. 2 Holders of rec. Mar. 15
July 7 Holders of roe. June 20
Feb. 28 Holders of rec. Feb. 20
Apt. 2 Holders of rec. Mar. 8
Apr. 2 Holders of rec. Mar. 5
Mar.19 Holders of roe. Feb. 28
Mar.19 Holders of rec. Feb. 28
Feb. 24 Holders of rec. Feb. 19
Mar. 1 Holders of roe. Feb. 19
June 1 Holders of rec. May 21
Sept. 1 Holders of rec. Aug. 22
Deo. 1 Holders of roe. Mar.21

iasio
87)40
87340
8735e
50c
100
500
50c
$1.10
8734e
$1
$2
$1
El
$1Si
$2
$2
$1
$1
$1
$1
$1
$144
5144
$144
$144

Mar.
June
Sept.
Deo.

1 Holders of rec. Feb. 20
1 Holders of roe. May 21
1 Holders of roe. Aug. 20
1 Holders of rec. Nov. 20

Name of Company.
Railroads (Steam) (Concluded).
Pennsylvania
Piedmont& Northern(quar.)
Pittsburgh Bessemer & Lake Erie (s.-a.)_
Pitts Ft Wayne & Chicago (guar.)
Quarte;ily
Quarterly
7% preferred (quar.)
(qua?.)
7% pprefrefeerrrriedd
7% Preferred (guar.)
Reading lie.. 1st pref. Billara
Union Pacific, common
Preferred (5.-a.)
United NewJersey RR.& Canal(quar.)..
Public Utilities.
Amer. Elec.Securities Corp., panic. pf..Bangor Hydro-E.ec., 7% pref.(quar.)__
6% preferred (quar.)
Baton Rouge Elec., pref. (quar.)
Bridgeport Gas Light (guar.)
Brooklyn Union Gas Co.(qua?.)
Buffalo Niagara & Eastern Power (qu.).
55 lot preferred
Canadian Hydro-Electric Cory.
13% preferred (qua?.)
Cent. Arkansas Pub.fiery., pref.(guar.)
Central MM.Valley Elec.Prop..PL(q11.)
Citizens Gas of Indianapolis, prof.
Elec. Mum.,8% prof.
(qu.)Clev
Coast Cos.Gas& Elec.,6% pref.(qu.)-Commonwealth Utilities. pref. 0 (111.)Connecticut Power Co.(guar.)
Connecticut River Pow.,6% pref.(111.)Consolidated Gas
Consol. Gas El. Lt.& Pow. Co.of Ball.,
Common (qual.)
Series A,5% preferred (quar.)
Series D 6% preferred (quar.)
Series E 534% preferred (qua?.)
Consumers Power Co., 65 pref. (qual.)..
6% preferred (quar,)
6.6% preferred (quar.)
7% preferred (quar.)
8% preferred (monthly)
8% preferred (monthly)
8.8% preferred (monthly)
6.6% Preferred (monthly)
Dayton Pow.& Light Co..6% Pl.(m0)
Duquesne Light Co..5% 1st pref.(WO Eastern Shore Pub.Say $63' p1.(Qua
$8 preferred (qua!,)
Eastern Township Telephone
Elizabeth & Trenton (5.-a.)
Semi-annual
5% preferred (s.-a.)

Feb. 24 1934
Per
When
Share. Payable.

Books Closed
Days Inclusive.

500 Mar.15 Holders of roe. Feb. 15
75o Apr. 10 Holders of roe. Mar.31
75e Apr. 1 Holders of rec. Mar. 15
$ix Apr. 3 Holders of roe. Mar.10
6144 July 3 Holders of roe. June 11
VA Oct. 2 Holders pf rec. Sept. 10
$134 1-1-35 Holders et rec. Dec. 10
UR Apr. 3 Holders of rec. Mar. 10
$13' July 3 Holders of ree. June 11
Oot. 2 Holders of me. Sept. 10
$144 1-1-15 Holders of roe. Dec. 10
500 Mar. 8 Holdesr of reo. Feb. 15
$13' Apr. 2 Holders of rec. Mar. 1
52 Apr. 2 Holders of rec. Mar. 1
$23' Apr. 10 Holders ot reo. Mar.20
710
$131
.
11)I
$13'
600
11)4
40c

$ix

Mar. 1 Holders of rec. Feb. 20
Apr. 2 Holders of roe. Mar. 10
Apr. 2 Holders of rec. Mar. 10
Mar. 1 Holders of rec. Feb. 15
Mar.31 Holders of ree. Mar.16
Apr. 2 Holders of reo. Mar. 1
Apr. 2 Holders of rec. Mar. 15
May 1 Holders of roe. Apr. 14

r$1% Mar. 1 Holders of roe. Feb. 1
% Mar. 1 Holders of rec. Feb. 15a
$134 Mar. 1 Holders of rec. Feb. 15
$134 Mar. 1 Holders of rec. Feb. 20
$1h Mar. 1 Holders of rec. Feb. 15
$134 Mar. 15 Holders of reo. Feb. 26
$134 Mar. 1 Holders of roe. Feb. 15
62340 Mar. 1 Holders of roe. Feb. 15
8134 Mar. 1 Holders of rec. Feb. 15
750 Ma?.15 Holders of roe. Feb. 2

900 Apr. 2 Holders of rec. Mar. 15
$134 Apr. 2 Holders of rec. Mar. 15
5134 Apr. 2 Holders of rec. Mar. 15
$134 Apr. 2 Holders of rec. Mar. 15
ill( Apr. 2 Holders of rec. Mar. 15
$13' Ayr. 2 Holders of rec. Mar. 15
$1.65 Apr. 2 Holders of rec. Mar. 15
OR Apr. 2 Holders of reo. Mar. 15
500 Mar. 1 Holders of rec. Feb. 15
500 Apr. 2 Holders of ree. Mar. 15
850 Mar. 1 Holders of rec. Feb. 15
85e Apr. 2 Holders of roe. Mar.15
500 Mar. 1 Holders of rec. Feb. 20
5134 Apr, 16 Holders of rec. Mar. 15
$144 Mar. 1 Holders of reo. Feb. 10
$114 Mar. 1 Holders of roe. Feb. 10
18. Apr. 15 Holders of rec. Dec. 31
$1 Apr. 2 Holders of rec. Mar.20
$1 Oct. 1 Holders of rec. Sept.20
113i Apr, 2 Holders of roe. Mar. 20
$13( Oct. 1 Holders of roe. Sept.20
$1 Mar. 1 Holders of rec. Feb. 17
Em
5
4%
pIre
g
prat
4% gu.(qu.)
uara
& Bay State
$1 June 1 Holders of reo. May 22
$1 Sept. 1 Holders of rec. Aug. 22
4% guaranteed 91,9110
81 Dee. 1 Holders of rec. Nov.21
4% guaranteed (qua?.)
Empire Gas & Elec. Co..6% prof.(a11.)- $134Mar. 1 Holders of roe. Jan. 31
$13' Mar. 1 Holders of rec. Jan. 31
7% preferred C,(quar.)
8% preferred 13 (aunt.)
$134 Mar. 1 Holders of rec. Jan. 31
ua
Tt
rj
aetIon$134 May 1 Holders of reo. Apr. 26
E9c
6a
%
napwrebterr
a Po
ed
w.
4
804 Aug. 1 Holders of roe. July 27
6% preferred (quar.)
8134 Nov. 1 Holders of rec. Oct. 26
6% preferred (guar.)
Federal Light & Traction, pt.(quar.)--- $134 mar. 1 Holders of rec. Feb. 15
Florida Power Corp., 7% pref. A (111.)- $134 Mar. 1 Holders of rec. Feb. 15
87310 Mar. 1 Holders of rec. Feb. 15
7% preferred (quar.)
$13.4 Mar,15 Holders of rec. Mar. 1
Gulf stases Util.,$6 pref.(quar.)
$134 Mar. 15 Holders of rec. Mar. 1
preferred
$534
(guar.)
Indianapolis Water Co.. 5% pref.(qu.)- all( Mar.31 Holders of roe. Mar. 10
250 Mar. / Holders of roe. Feb. 10
Lehigh Power Securities (qual.)
Louisville Gas & Electric Co.(Del.)
43340 Mar. 24 Holders of rec. Feb. 28
Class A and B common (quar.)
Mississippi Vali.Pub.Ser.,7% pf.(qu.)- $13' Mar. 1 Holders of rec. Feb. 17
Missouri Utilities, 7% ['ref• (fluar•)---- 51)4 Mar. 1 Holders of rec. Feb. 17
200 Mar. 1 Holders of ree. Feb. 10
NationalPow.& Light.corn
Nebraska Power Co., 7% prof. (qua?.).. En Mar. 1 Holders of rec. Feb. 14
$134 Mar. 1 Holders of rec. Feb. 14
6% preferred (guar.)
al% Mar. I Holders of rec. Feb. 20
New Rochelle Water Co..Pref• (qua?.).
55e Mar. 1 Holders of roe. Feb. 15
New York Steam, coin.(gum.)
$134 Mar. 1 Holders of roe. Feb. 15
North Amer. Edtson Co., pref. (qual.)
750 Mar. 1 Holders of roe. Feb. 20
Northwestern Pub. Seto..6% Prof
87340 Mar. 1 Holders of rec. Feb. 20
pre
)
t.(1111.)- $114 Mar. 1 Holders of rec. Feb. 14
O
Nh
o
7iv
(q
%
uar
w.
f..8
%
oap
%
Pp
oro
STt
eerred
iraco
Lt.
.6
&
$135 Mar. 1 Holders of rec. Feb. 6
Ohio Public Serv. Co.,7% pref.(mo.). -- 58 1-30. Mar. 1 Holders of roe. Feb. 15
b(le Mar. 1 Holders of rec. Feb. 15
8% preferred (guar.)
41 2-3o. Mar. 1 Holders of rec. Feb. 15
5% preferred (qua?.)
Oklahoma Gas & El. Co.,6% pref.(qu.) 134% Mar. 15 Holders of rec. Feb. 28
1)4% Mar. 15 Holders of rec. Feb. 28
7% 'preferred (quar.)
$134 Mar. 1 Holders of roe. Feb. 20
Penn State Water Co.. prof• (111111%)
Pennsylvania Gas & Elec. Corp..
37340 Mar. 1 Holders of rec. Feb. 20
Class A
$134 Apr. 2 Holders of roe. Mar. 20
$7 & 7% preferred (guar.)
Pennsylvania Power Co.$0.80 Prof.(1110) 650 Mar. 1 Holders of rec. Feb. 20
$134 Mar. 1 Holders of roe. Feb. 20
$6 Preferred (qua?.)
25c Mar. 1 Holders of roe. Feb. 10
Philadelphia Co.. 5% prof.
$13' Apr, 2 Holders of rec. Mar. 1
65 cum. preferred (quar.)
$134 Apr. 2 Holders of reo. Mar. 1
$6 cum. preferred (guar.)
Phila. Germantown & Norristown (qu.)- $134 Mar. 5 Holders of rec. Feb. 20
Phila. Suburban Water, pref. (quar.).. $13.4 Mar. 1 Holders of rec. Feb. 10
$134 Mar. 1 Holders of tee. Feb. 10
Potomac Elec. Pr.,6% pref.
$144 Mar. 1 Holders of reo. Feb. 10
% preferred (qum.)
Public Elec. Light,8% prof.(guar.)---- 51% Mar, 1 Holders of roe. Feb. 21
Pub.Serv. Co.of Colo.,7% pref.(mo.) 58 1-30. Mar. 1 Holders of roe. Feb. 15
500 Mar. 1 Holders of rec. Feb. 15
6% preferred (mo.)
41 2-3o. Mar. 1 Holders 01 roe. Feb. 15
5% preferred (mo.)
700 Mar.31 Holders of reo. Mar. 1
Public Service Corp. of N.J.oom.(qu.).
8% cumulative preferred ((Mara
62 Mar.31 Holders of rec. Mar. 1
7% cumulative preferred (qar.)
11134 Mar.81 Holders of roe. Mar. 1
$114 Mar.81 Holders of roe. Mar. 1
25 cumulative preferred (guar.)
500 Feb. 28 Holders of roe. Feb. 1
8% preferred (monthly)
6% preferred (monthly)
800 Mar.31 Holders of rec. Mar. 1
25o Feb. 25 Holders of ree. Jan. 97
Quebec Power Co.coin.(quar.)
Rochester Gas & Electric Corp.
$144 Mar. 1 Holders of reo. Jan. 27
7% preferred series 13 (quar.)
8% preferred series C and D (quar.).. $134 Mar. 1 Holders° free. Jan. 27
Shenango Valley Water Co..6% pt.(01.) $134 Mar. 1 Holders of rec. Feb. 20
South Carolina Power Co.,$8 pret.(qu.) $134 Apr. 2 Holders of rec. Mar. 15
South Colorado Power,$6 1st prof.(qu.) 1134 Apr, 2 Holders of rec. Mar. 15
Southern Calif. Edison Co.. Ltd.
134% Mar. 15 Holders of rec. Feb. 20
Preferred A (quar.)
114% Mar. 15 Holders of rec. Feb. 20
6% Preferred B (quar.)
Southern Calif. Gas. $63' prof. (luar.)-, $13' Feb. 28 Holders of rec. Jan. 31
Southern Colo. Pow.,7% cum. pt. (au.)
1% Mar. 15 Holders of rec. Feb. 28
Southern New England Telep. (guar.).- $134 Apr. 16 Holders of rec. Mar. 31
filusqueha'ma Util.,6% prof.(quar.)
$134 Mar. 1 Holders of roe. Feb. 20
Tennessee Electric Power Co.
$114 Au. 2 Holders of roe. Mar. 15
5% let preferred (quar.)
8% 1st preferred (quar.)
$1)4 Apr. 2 Holders of roe. Mar. 15
7% 1st preferred (guar.)
$144 Apr. 2 Holders of roe. Mar. 15
7.2% 1st preferred (quar.)
$1.80 Apr. 2 Holders of roe. Mar. 15
6% 1st preferred (monthly)
500 Mar. 1 Holders or rec. Feb. 15
6% 18t preferred (monthly)
6013 Apr. 2 Holders of roe. Mar. 15
7.2% 1st preferred (monthly)
800 Mar, 1 Holders of reo. Feb. 15
7.2% let preferred (monthly)
600 Apr. 2 Holders of roe. Mar.15

'
',
Name.!Canyon

Per
When
Share. Payable.

Books Closed
Days Inclusive.

Public Utilities (Concluded).—
200 Mar. 1 Holders of rec. Feb. 20
Telephone Investment Corp. (mo.)____
20c Apr. 2 Holders of rec. Mar. 20
Monthly
$14 Mar. 1 Holders of rec. Feb. 17
Texas Utilities Co.. prof.(quar.)
551 34 Mar. 1 Holders of rec. Feb. 10
Tide Water Power Co.. $6 prof
Toledo Edison Co.. 7% pref. (monthly) 58 1-30 Mar. 1 Holders of rec. Feb. 15
50c Mar. 1 Holders of rec. Feb. 15
6% preferred (monthly)
41 2-3c Mar. 1 Holders of rec. Feb. 15
5% preferred (monthly)
15c Mar. 1 Holders of rec. Feb. 15
Tri-State Tel. & Tel.,6% Prot (quar.)__
$234 Apr. 29 Holders of rec. Mar.20
United Cos.of New Jersey (guar.)
30c Mar.31 Holders of rec. Feb. 28
United Gas Impt. Co., common (guar.).
$5 preferred (guar.)
$134 Mar. 31 Holders of rec. Feb. 28
United Light & Rye. Co.(Del.)
7% preferred (monthly)
58 1-3c Mar. 1 Holders of reo. Feb. 15
53e Mar. 1 Holders of rec. Feb. 15
6.38% preferred (monthly)
500 Mar. 1 Holders of rec. Feb. 15
6% preferred (monthly)
7% preferred (monthly)
58 1-3 Apr. 2 Holders of rec. Mar. 15
530 Apr. 2 Holders of rec. Mra.15
6.36% preferred (monthly)
50c Apr. 2 Holders of rec. Mar.15
6% preferred (monthly)
United States Elec. Lt.& Pr.. $6 pt.(qu) $1% Apr. 2 Holders of rec. Mar. 15
Upper Michigan Pow.dr Lt. pref.(qu.) _ _ $134 May 15
6% preferred (guar.)
$134 Aug. 15
6% preferred (guar.)
$154 Nov. 15
6% preferred (quar.)
$134 2-1-35
Virginia Elec. & Power. Co., $8 pt.(qu.) $134 Mar.20 Holders of rec. Feb. 28
Washington Water Power,$6 prof. (qu.) $134 Mar. 15 Holders of rec. Feb. 23
Wheeling Electric Co., 6% pref (guar.) $134 Mar. 1 Holders of rec. Feb. 6
Williamsport Water Co..$6 prof.(quar.) $134 Mar. 1 Holders of rec. Feb. 20
Fire Insurance Companies.
Boston Insurance Co.
Glen Falls Ins. (quar.)
North River Ins. Co.(guar.)
Extra
Republic Insurance, Texas (guar.)
Quarterly
Quarterly
Southern Fire Ins. Co
Miscellaneous.
Abbott's Dairies (guar.)
1st dr 2nd preferred (guar.)
Abbott Labratories (guar.)
Extra
Affiliated Products, corn.(mo.)
Agnew Surpass Shoe Stores,corn.(Initial)
Preferred (guar.)
Allegheny Steel Co., prof.(guar.)
Allot. Industries, Inc., $3 pref. (guar.)._
Alpha Ptld Cement,7% pref. (guar.)--Aluminum Co. of Amer., pref. (quar.)..
Aluminum Mfg.(guar.)
Quarterly
Quarterly
Quarterly
7% preferred (guar.)
7% preferred (guar.)
7% preferred (guar.)
7% preferred (guar.)
American Arch.(guar.)
American Business Shame
American Capital Corp.$534 prof.(qu.)American Envelope,7% pref.(guar.)_ 7% preferred (guar.)
7% preferred (guar.)
7% preferred (guar.)
American Factors(too.)
Amer.& Gen. Securities Corp., A cum_ _
$3 series cumulative preferred
American Glanzstoff Corp., pref. (qtr.)
7% preferred (guar.)
7% preferred
American Home Products (mo.)
American Laundry Mach.Co.,corn.(qu.)
American Radiator & Standard Sanitary
Preferred (guar.)
American Smelting & Refining. pref._
American Steel Foundries, pret
American Storm Co. (guar.)
American Sugar Refining Co.,corn.(qu.)
Preferred (guar.)
Amer.Tobacco Co., corn.& corn. B.(qu)
American Woolen Co., Inc., pref. (qu.)_
Archer-Daniels-Midland Co.. corn.(qu.)
Argonaut Mining Co
Armour & Co.of Del., 7% pref. (quar.)_
Artloom Corp. preferred (guar.)
Atlantic Relining Co.(Phila.), corn.(qu)
Atlas Corp., $3 pref. A (guar.)
Atlas Powder Co., tom.(guar.)
Automotive Gear Works, pref. (quar.)_ _
Bomberger (L.) & Co.,64% pref.(au.)
Bankers National Investors, pref. (qu.)
Series A & B (guar.)
Quarterly
Barber(W.H.) & Co., pref.(guar.)._ Preferred (guar.)
Preferred (guar.)
Preferred (guar.)
Belding-Corticeill, Ltd., prof. (guar.).Berghoft Brewing Co.(guar.)
Berkshire Woolen (s-a.)
Black-Claw Co., pref. (guar.)
Block Bros. Tobacco (quar.)
Quarterly
Quarterly
Preferred (guar.)
Preferred (guar.)
Preferred (guar.)
Preferred (guar.)
Blue Ridge Corp.,53 cony. pret.(guar.)
Borden Co., corn. (quar.)
Bower Roller Bearing Co
Brach(E.J.)& Sons, Inc., corn.(ouat.).
Briggs & Stratton Corp
Bristol Brass
Preferred (guar.)
Bristol-Myers Co., corn.(guar.)
Extra
Brown Shoe Co., corn. (quar.)
Buckeye ripe Line Co.(quar')
Bucyrus Erie Co., pref.(guar.)
Burroughs Adding Mach. Co
Colombo Sugar Estates. corn.(quar.)___
7% preferred (guar.)
Canada Malting Co.(guar.)
Canada Vinegars(quan)
Canadian 011, pref.(guar.)
Canfield Oil Co., preferred (guar.)
Carnation Co., prof.(quar.)
Preferred (guar
Preferred (guar.)
Preferred (guar.)
Carter (Vim.)& Co., preferred (quar.)..
Case (J. I.), 7% prof.(guar.)
Caterpillar Tractor CO. (sPerrial)
Celanese Corp. of Amer., 7% 1st pref
Centrifugal Pipe Corp. (guar.)
Quarterly
Quarterly
Century Ribbon Mills, Inc.. of.
Fiber, 7% met (guar.)
(qu.)_Champion




1353

Financial Chronicle

Volume 138

$4.21
40e
150
be
20c
20c
20c
500

Apr. 2 Holders of rec. Mar.20
Apr. 2 Holders of roe. Mar. 16
Mar. 10 Holders of rec. Mar. 1
Mar. 10 Holders of rec. Mar. 1
May 10 Holders of rec. Apr. 30
Aug. 10 Holders of rec. July 31
Nov. 10 Holders of rec. Oct. 31
Mar. 1 Hold rs of re .Feb. 15

250.
5134
500
100
5e
r200
$15(
$134
75e
513j
8734e
500
50o
50o
50c
$134
$134
$131
$131
.
25e.
2o
513
$131
5134
5134
$144
10o
7340
750
75c
$1
5514
20e.
10c

Mar.
Mar.
Apr.
Apr.
Mar.
Mar.
Apr.
Mar.
Mar.
Mar, 1
Apr.
Mar.3
June 3
Sept.3
Doe. 3
Mar.3
June 3
Sept. 3
Dec. 3
Mar.
Mar.
Mar.
Mar.
June
Sept.
Dec.
Mar.1
Mar.
Mar.
Apr.
Apr.
Apr.
Mar.
Mar.

Holders of rec. Feb. 15
Holders of rec. Feb. 15
Holders of rec. Mar. 15
Holders of rec. Mar. 15
Holders of rec. Feb. 16
Holders ot rec. Feb. 15
Holders of rec. Mar. 15
Holders of roe. Feb. 15
Holders ol rec. Feb. 20
Holders of rec. Mar. 1
Holders of rem Mar. 15
Holders of rec. Mar. 15
Holders of rec. June 15
Holders of rec. Sept. 15
Holders of rec. Doe. 15
Holders of rec. Mar. 15
Holders of rec. June 15
Holders of rec. Sept. 15
Holders of rec. Dee. 15
Holders of rec. Feb. 17
Holders of rec. Feb. 15
Holders of rec. Feb. 16
Holders of rec. Feb. 25
Holders of roe. May 25
Holders of rec. Aug. 25
Holders of rec. Nov.25
Holders of roe. Feb. 28
Holders of rec. Feb. 15
Holders of rec. Feb. 15
Holders of rec. Mar.23
Holders of rec. Mar.23
Holders of rec. Mar.23
Holders of re° Feb. 14
Holders of rec. Feb. 19

$134
88234
50e
50o
500
5134
$134
5134
25o
25e
5134
55134
25e
750
50c
4134c
$134
150
240
60
5134
$1
$1
$134
$1.34
30c
$2
$14
3734c
3734e
37.4e
$154
5134
$134
$134
P750.
400
25e
10e.
25e
25e
5134
50c.
100.
750
75e.
50e
100.
400
350
3734c
400
52
5134
$134
$144
$131
$154
$14
$1
12340
554
100
100
Me
$1.44
5134

Mar.
Mar.
Mar.3
Apr.
Apr.
Apr.
Mar.
Apr. 1
Mar.
Feb. 2
Apr.
Mar.
Mar. 1
Mar.
Mar. 1
Mar.
Mar.
Feb. 2
Feb. 2
Feb. 2
Apr.
July
Oct.
Jan 13
Mar. 1
Mar.

Holders of rec. Feb. 23
Holders of rec. Feb. 2
Holders of roe. Mar. 15
Holders of reo. Mar.16
Holders of roe. Mar. 5
Holders of roe Mar. 5
Holders of rec. Feb. 10
Holders of rec. Mar. 15
Holders of rec. Feb. 17
Holders of rec. Feb. 16,
Holders of rec. Mar. 10
Holders of rec. Feb. 15
Holders of rec. Feb. 21
Holders of rec. Feb. 20
Holders of rec. Feb. 28
Holders ol. rec. Feb. 20
Holders of roe. Feb. 13
Holders of rec. Feb. 10
Holders of rec. Feb. 10
Holders of rec. Feb. 10
Holders of rec. Mar. 20
Holders of roe. June 20
Holders of rec. Sept. 20
Holders of rec. Dec. 20
Holders of rec. Feb. 28
Holders of rec. Feb. 23

Mar. 1 Holders of rec. Feb. 25
May 15 Holders of roe. May 11
Aug. 15 Holders of roe. Aug. 11
Nov. 15 Holders of rm. Nov. 11
Mar. 31 Holders of roe. Mar.25
June 30 Holders of roe. June 25
Sept. 30 Holders of rec. Sept.25
Dee. 31 Holders of roe. Dee. 24
Mar. 1 Holders of rec. Feb. 5
Mar. 1 Holders of rec. Feb. 15
Mar.20 Holders or rec. Mar. 1
Mar. I Holders of rm. Feb. 10
Mar. 31 Holders of rec. Mar. 20
Mar. 15 Holders of rec. Feb. 15
Apr. 2 Holders of rec. Mar. 15
Mar. 1 Holders of rec. Feb. 15
Mar. 1 Holders of rec Feb. 15
Mar. 1 Holders of rec. Feb. 20
Mar.15 Holders of roe. Feb. 23
Apt. 2 Holders of rec. Mar. 15
Mar. 5 Holders of rec. Feb. 3
Apr. 1 Holders of roe. Mar. 15
Apr. 1 Holders ol reo. Mar. 15
Mar. 15 Holders of rec. Feb. 28
Mar, 1 Holders of rec. Feb. 15
Apr. 1 Holders or roe. Mar.20
Mar.31 Holders of rec. Mar. 20
Apr. 2
July 2
00. 1
Jan.215
Mar. 15 Holders of rec. Mar. 10
Apr. I Holders or rec. Mar. 12
Feb. 28 Holders or rec. Feb. 15
Mar. 2 Holders of rec. Feb. 16
May 15 Holders of rm. May 5
Aug. 15 Holders of rec. Aug. 5
Nov.15 Holders of rec. Nov. 5
Mar. 1 Holders of roe. Feb. 20
Apr. 2 Holders of rec. Mar. 20

Name of Company.

When
Per
Share. Payable.

Books Closed.
Days Inclusive.

Miscellaneous (Continued).
Champion Coated Paper Co.
1st preferred (guar.)
5134 Apr. 2 Holders of rec. Mar.20
Special preferred (guar.)
5134 Apr. 2 Holders of rec. Mar. 20
Chartered Investors, pref. (guar.)
$134 Mar. 1 Holders of rec. Feb. 1
$1 Mar. 30 Holders of rec. Mar. 10
Chesebrough Mfg.(guar.)
50e Mar. 30 Holders of rec. Mar. 10
Extra
25c Mar. I Holders of rec. Feb. 15
Chicago Corp., prof.(guar.)
550c Mar. 5 Holders of rec. Feb. 23
Chicago Elec. Mfg. Co., class A
Chicago Junction & Union Stockyards6% preferred (guar.)
$134 Apr. 2 Holders of rec. Mar. 15
$234 Apr. 2 Holders of rec. Mar. 15
Quarterly
25e Mar. I Holders of rec. Feb. 19
ChicagoYellow Cab (guar.)
25c Mar.31 Holders of rec. Mar. 1
Chrysler Corp., common (guar.)
500 Mar.31 Holders of rec. Mar. 15
City Ice dr Fuel Co., corn.(guar.)
$134 Mar. 1 Holders of rec. Feb. 15
Preferred (guar.)
20e Mar. 15 Holders of rec. Feb. 28
Clark Equipment Co.. common
7% preferred (guar.)
5134 Mar. 15 Holders of rec. Feb. 28
$1 Mar. 15 Holders of roe. Fob, 21
Claude Neon Elec. Prod. of Del.,spec_ -Colgate-Palmolive-Peet Co., prof. (qu.) 5134 Apr. 1 Holders of rec. Mar. 10
10c Feb. 28
Collateral 'I rust Shares, series A
Collins & Aikman Corp.. prof. (guar.)-. 5134 Mar. 1 Holders of rec. Feb. 16
250 Mar. 31 Holders of rec. Mar. 10
Co It Patent Fire Arms Mfg.(guar.)
750 Mar. 1 Holders of rec. Feb 150
Columbia Pictures, prof.(guar.)
Mar. 1 Holders of rec. Feb. 16
50c
Columbian Carbon Co. (guar.)
25c Mar. 1 Holders of rec. Feb. 16
Extra
Commercial National Corp
$1 Mar. 1 Holders of rec. Feb. 15
Campania Swift International (3.-a.)
12340 Mar. 1 Holders of rec. Feb. 20
Compo Shoe Mfg., corn.(guar.)
350
Mar. 15 Holders of rec. Feb. 28
(guar.)
_
Compressed Industrial Gases
Congoleum-Nairn, Inc., corn.(guar.)._ 32340 Mar. 15 Holders of rm. Mar. 1
$144 Mar. 1
1st preferred (quar.) _
30c May 1 Holders of rec. Apr. 20
Consolidated Amusement(guar.)
$134 Mar. 1 Holders of roe. Feb. 15o
Control Cigar Corp., preferred (guar.)
Apr. 2 Holders of rec. Mar. 9
50c
Consolidated Film Indus., pref. (quar.)28c Apr. 7 Holders of rec. Mar. 10
Consolidated Oil Corp.,corn.(initial)...150 Mar. 1 Holders of rec. Feb. 17
Consolidated Paper(quar.)
17340 Apr. 1 Holders of rec. Mar.21
7% Preferred (guar.)
150 Mar. 1 Holders of rec. Feb. 15
Continental Casualty
25e Mar. 15 Holders of rec. Feb. 28
Cord Corp
250 Mar. 1 Holders of rec. Feb. 20
Corno Mills Co.(guar.)
Cottrell(C.B.) dr Sons, pref.(guar.).--- $134 Apr. 2 Holders of rec. Mar. 31
w434% Mar.22 Holders of rec. Feb. 20
Courtaulds Ltd., corn. final
67c Mar. 15 Holders of rec. Feb. 28
Crown Cork & Seal Co., Inc., pre
Crown Zellerbach,56 °ref. A& B (guar.) 83734e Mar. 1 Holders of rec. Feb. 13
5134 Feb. 28 Holders of rec. Feb. 17
Crum & Forster, 7% prof.(guar.)
$2 Mar.31 Holders of rec. Mar.21
8% preferred (guar.)
100 Feb. 28 Holders of rec. Feb. 17
Class A & B (guar.)
10c Feb. 28 Holders of rec. Feb. 17
Extra, A & B
$144 Mar.15 Holders of rec. Mar. 1
Cuneo Press. Inc.. preferred (quar.)
50c Mar. 1 Holders of rec. Feb. 16
Cushmans Sons, Inc., tom.(quar.)
$2 Mar. 1 Holders of rec. Feb. 16
$8 cumulative preferred (guar.)
Mar. 1 Holders of rec. Feb. 16
$134
7% cumulative preferred (guar.)
25e Mar. 15 Holders of rec. Feb. 28
Daniel Reeves, Inc., common (guar.).Mar. 15 Holders of rec. Feb. 28
5134
(guar.)
preferred
6 H%
20e Mar. 1 Holders of rec. Feb. 15
Davega Stores Corp., corn
Sc Mar. 1 Holders of rec. Feb. 15
Deere & Co.. pref. (guar.)
50o Apr. 1
Denver Union Stockyards (guar.)
50c July 1
Quarterly
500 Oct. 1
Quarterly
500 1-1-35
Quarterly
$134 Mar. 1 Holders of rec. Feb. 20
7% preferred (guar.)
8134 June 1 Holders of roe. May 20
7% preferred (guar.)
• SIM Sept. 1 Holders of roe. Aug. 20
7% preferred (quar.)
$134 Dee. 1 Holders of rec. Nov.20
7% Preferred ((Mar.)
Devoe & Itaynolds
250 Apr. 2 Holders of rec. Mar.21
Common A & B (guar.)
250 Apr. 2 Holders of rec. Mar.21
Common A & B extra
5134 Apr. 2 Holders of rec. Mar. 21
7% first and second pret.(guar.)
20e Mar. 1 Holders of roe. Feb. 16
Dexter Co.. common (guar.)
29c Mar. 1 Holders of rec. Feb. 15
Diamond Match (guar.)
75o Mar. 1 Holders of rec. Feb. 15
6% preferred (s.-a.)
$2 Mar. 1 Holders of roe. Feb. 16
Dictaphone Corp.. pref.(quar.)
15c Mar. 1 Holders of rec. Feb. 15
Doctor Pepper Co..(guar.)
15o June 1 Holders of rec. May 15
Quarterly
15e Sept. 1 Holders of rec. Aug. 15
Quarterly
150 Dec. 1 Holders of rec. Nov. 15
Quarterly
r50o. May 15 Holders of tee. Apr. 30
Dominion Bridge Co.. Ltd.. corn.
30e Apr. 2 Holders of rec. Mar. 15
Dominion Stores, Ltd., corn.(quar.).
551 Mar. 1 Holders of rec. Feb. 15
Durham Hosiery Mills,6% prof
25e Mar.31 Holders of not. Mar.20
Early & Daniel Co.. corn. (quar.)
$151 Mar.31 Holders of rec. Mar.20
Preferred (guar.)
Sc Mar.10 Holders of rec. Mar. 1
Eastern Malleable Iron Co.(quar.)
75e Apr. 2 Holders of rec. mar. 5
Eastman Kodak Co., cont.(guar.)
8134 Apr. 2 Holders of rec. Mar. 5
Preferred (guar.)
Ely di Walker Dry Goods Co.—
25c Mar. 1 Holders of rec. Feb. 17
Special
2% Feb. 28 Holders of roe. Feb. 20
Empire Capital Corp.,class A (guar.)
Eppens,Smith (0.-a.)
32 Aug. 1 Holders of rec. July 25
Farmers & Traders Life Ins. Co.(SyreMee, N. V 1 (quar.)_
$234 Apr. 1 Holders of roe. Mar. 11
50c Apr. 2 Holders of rec. Mar. 15
Faultless Rubber Co.(qual.)
160 Mar.29 Holders of rec. Mar. 15
Fifth Avenue Bus Securities (guar.)._
Firestone Tire & Rubber Co., prof.(On.) $134 Mar. 1 Holders of roe. Feb. 15
Fishman(M. H.) Co., Inc., corn. spec_ _
500 Mar.20 Holders of rec. Mar. 1
Fitz Simons & Connell Dredge & Dock—
1234e Mar. 1 Holders of rec. Feb. 17
Common (guar.)
Franklin Simon & Co., inc., prof.(qUi - 5134 Mar. 1 Holders of rec. Feb. 16
50e M. 1 Holders of rec. Feb. 15
Freeport Texas (mar.)
$14 May 1 Holders of rec. Apr. 13
6% preferred (guar.)
Garland Mercantile Laundry (guar.).— - 8734c Apr. 1 Holders of rec. Mar. 15
Gates Rubber, 7% prof. (guar.)
$134 Mar. 1 Holders of rec. Feb. 16
General American Corp. (s.-a.)
50 Mar. 1 Holders of tea. Feb. 15
General Cigar CO,Inc.. pref.(qua"—
$144 Mar. 1 Holders of rec. Feb. 20
Preferred (guar.)
$134 June 1 Holders of rec. May 23
$1 34 Sept. 1 Holders of rec. Aug. 23
Preferred (quar.)
8134 Dee. 1 Holders of rec. Nov.22
Preferred (guar.)
25c Mar.12 Holders 01 rec. Feb. 15
General Motors Corp., corn.(guar.).$134 May 1 Holders of rec. Apr. 9
55 preferred (guar.)
General Shoe. A,initial (guar.)
10c Apr. 15 Holders of rec. Apr. 15
Gilbert (A. C.) Co., prof.
8734c Mar. 1 Holders of rec. Feb. 21
Golden Cycle (guar.)
400 Mar. 10 Holders of rec. Feb. 28
Glidden Co.(guar.)
25c Apr. 2 Holders of rec. Mar. 14
Preferred (guar.)
514 Apr. 2 Holders of rec. Mar. 14
Goldblatt Bros.. Inc.. new corn.(qu.).
250 Apr. 2 Holders of rec. Mar.10
Goodyear Tire & Rubber,$7 cum pf.(qu)
31 Apr. 1 Holders of rec. Mar. 1
$7 cum preferred
552 Mar. 1 Holders of rec. Feb. 23
Gotthled Baking Co.. Inc.. pref.(an.).. 134% Apr. 2 Holders of roe. Mar.20
Preferred(guar.)
131% July 2 Holders of roe. June 20
Preferred (quar.)
134% Oct. 1 Holders of rec. Sept. 20
Preferred (fluor.)
134% Jan2'35 Holders of roe. Dec. 20
Grand Union Co..53 cony. prof.
75e Mar. 1 Holders of rec. Feb. 10
Great Atlantic & Pacific Tea Co.—
Common (guar.)
$14 Mar. 1 Holders of rec. Feb. 2
Extra
250 Mar, 1 Holders of rec. Feb. 2
Preferred (guar.)
$154 Mar. 1 Holders of rec. Feb. 2
Great Northern Paper Co (guar.)
250 Mar. 1 Holders of rec. Feb. 20
Hale Bros. Storm, Inc. (guar.)
15e Mar. 1 Holders of rec. Feb. 15
quarterly
15e June 1 Holders of rec. May 15
150 Sept. 1 Holders of rec. Aug. 15
Quarterly
150 Dee. 1 holders of roe. Nov. 15
25c Mar. 31 Holders of rec. Mar. 15
Retold Co. (guar.)
225c Mar. 31 Holders of rec. Mar. 15
Extra
5134 Mar. 31 Holders of rec. Mar. 15
Preferred (quar.)
Hamilton United Theatres, prof.(guar.). $134 Mar. 31 Holders of rec. Feb. 28
Harbauer.7% pref.(guar.)
$134 Apr. 1 Holders of roe. Mar. 21
3134 Aug. 1 Holders of tee. July 21
7% Preferred (quar.)
8131 Oct. 1 Holders of roe. Sept.21
7% Preferred (guar.)
7% preferred (qual.)
$154 Jan 1'35 Holders of rec. Dec. 21
Hart.lson-Walker Refractories—
Preferred (guar.)
% Apr. 20 Holders of rec. Apr. 10
83% Mar. 1 Holders 01 rec. Feb. 19
Preferred

1354
Name of Company.

Financial Chronicle
Per
When
Share. Payable.

Books Closed
Days Inclustre.

Miscellaneous (Continued).
Hancock Oil of Calif A & B (guar.)._ _
100 Mar. 1 Holders of rec. Feb. 15
Hanna(M. A.) Co.,57 pref.(quar.)_.. El% Mar.20 Holders of rec. Mar. 5
Hardesty (R.) Mfg., 7% pref. (guar.)._ $1 34 Mar. 1 Holders of rec. Feb. 15
7% preferred (guar.)
81% June 1 Holders of rec. May 15
7% preferred (guar.)
5134 Sept. 1 Holders of rec. Aug. 15
7% preferred (guar.)
51% Dec. 1 Holders of rec. Nov. 15
Hawaiian Agricultural (monthly)
290 Feb. 28 Holders of rec. Feb. 24
Hecla alining
100 Mar. 15 Holders 01 rec. Feb. 15
Heilman (G.) Brewing (guar.)
20c Mar. 1 Holders of rec. Feb. 10
Helena Rubinstein, Inc., S3 pref.(qu.)_ _
25c Mar. 1 Holders of rec. Feb. 19
Hibbard, Spencer, Bartlett & Co. (Zoo.)
100 Mar. 30 Holders of rec. Jan. 23
Hibben (J. H.) Dry Goods,6)4% pt.(qu) 31% Apr. 10 Holders of rec. Apr. 5
Hickok Oil (8.-a.)
50c Mar. 15
Hires (Chao. E.) Co., class Acorn.(qu.)
50c Mar. 1 Holders of rec. Feb. 15
Hobart Mfg. Co., common (guar.)
250 Mar. 1 Holders of rec. Feb. 14
Extra
500 Mar. 1 Holders of rec. Feb. 14
Holaphone Co., Inc., pref. (s.-a.)
51.05 Apr. 2 Holders of rec. Mar. 15
Hollinger Consol. Gold Mines (monthly)
1% Feb. 26 Holders of rec. Feb. 9
Extra
1% Feb. 26 Holders of rec. Feb. 9
Homestake Mining Co.(monthly)
$1 Feb. 26 Holders of rec. Feb. 20
Extra
51 Feb. 26 Holders of rec. Feb. 20
Hooven & Allison, pref. (guar.)
5134 Mar. 1 Holders of rec. Feb. 15
Horn & Hardart Co.. pref. (guar.)
51% Mar. 1 Holders of rec. Feo. 9
Imperial 011, Ltd.(guar.)
r12%c Mar. 1 Holders of rec. Feb. 9
Imperial Tobacco of Gt. Brit. dr Ireland
Ordinary registered
=8)4% Mar. 8 Holders of rec. Feb. 13
Extra
Is Mar. 8 Holders of rec. Feb. 13
Amer. dep. rec. ord. mg
zul% Mar. 8 Holders of rec. Feb. 13
Extra
Is Mar, 8 Holders of rec. Feb. 13
Ingersoll-Rand Co.. corn. (quar.)
3714o Mar. 1 Holders of rec. Feb. 5
International Business Mach. (quar.)_ _ 51% Apr. 10 Holders of rec. afar. 22
International Harvester (guar.)
15c Apr. 16 Holders of rec. Mar. 20
Preferred (guar.)
51% Mar. I Holders of rec. Feb. 5
International Milling Co., 1st pt.(qu.)_ _
51% Mar. 1 Holders of rec. Feb. 17
6% 1st preferred
5134 Mar. 1 Holders of rec. Feb. 17
International Nickel
100 Mar. 31 Holders of rec. Mar. 1
International Nickel of Canada
100 Mar. 31 Holders of rec. Mar. 1
International Proprietaries, cl. A (qu.)- r65c Mar. 15 Holders of rec. Feb. 21
Extra
r5c Mar. 15 Holders of rec. Feb. 21
International Safety Razor, Cl. A (qu.)-600 Mar. 1 Holders of rec. Feb. 15
International Salt Co
3734c Apr. 2 Holders of rec. Mar. 15a
Inter-Ocean Re-Insurance (s.-a.)
SI afar. 31 Holders of rec. Mar. 15
Interstate Hosiery Mills (guar.)
50c May 15 Holders of rec. May 1
Quarterly
50c Aug. 15 Holders of rec. Aug. 1
Quarterly
50c Nov. 15 Holders of rec. Nov. 1
Iron Fireman Mig. Co., corn.(quar.)_..
200 Mar. 1 Holders of rec. Feb. 10
Common (guar.)
200 June 1 Holders of rec. May 10
Common (guar.)
20o Sept. 1 Holders of rec. Aug. 10
Common (guar.)
20o Dec. 1 Holders of rec. Nov. 10
Jantzen Knitting Mills,7% pf.(au.).--- $IM Mar. 1 Holders „a rec. Feb. 25
7% preferred
h 51%, Mar. I Holders of rec. Feb. 25
Kaufman Dept. Stores, pref.(quar.)._. V% Apr. 2 Holders of rec. Mar. 10
Kekaha Sugar Co. (monthly)
20c Mar. 1 Holders of rec. Feb. 24
Kendall Co., preferred (guar.)
$134 Mar. 1 Holders of rec. Feb. 10a
King Royalty.8% pref. (guar.)
82 Mar. 31 Holders of rec. Mar. 15
Kirby Petroleum Co
10c Mar. 1 Holders of rec. Feb. 28
Klein (D. Emil) Co.. corn.(guar.)
25c Apr. 1 Holders ot rec. Mar. 20
Koloa Sugar, (monthly)
500 Feb. 28 Holders of rec. Feb. 21
Monthly
50c Mar.31 Holders of rec. Mar.24
Kresge (S. S.) Co., common
200 Mar. 31 Holders of rec. Mar. 10
Preferred (guar.)
$14 Mar. 31 Holders of rec. Mar. 10
Kroger Grocery dr Baking. corn.(quar.)
25o Mar. 1 Holders of tee. Feb. 20
Extra
50c Mar. 1 [folders of rec. Feb. 20
Landis Machine, pref. (guar.)
El% Mar. 15 Holders of rec. Mar. 5
Preferred (guar.)
51 34 June 15 Holders of rec. June 5
Preferred (guar.)
31% Sept. 15 Holders of rec. Sept. 5
Preferred (guar.)
51% Dec. 15 Holders of rec. Dec. 5
Lanston Monotype Co. (guar.)
51 Feb. 28 Holders of rec. Feb. 16
Laura Seeord Candy Shops, corn.(qtr.). _
75e Mar. I Holders of rec. Feb. 15
Lohn & Fink Co.(guar.)
500 Mar. 1 Holders of rec. Feb. 14
Lessings. Inc
be. Mar. 10 [folders of rec. Mar. 5
Libbey-Owens-Ford Glass Co.,crom.(qu.)
30e Mar. 15 Holders of rec. Feb. 28
Life savers, Inc. (guar.)
40c Mar. 1 [folders of rec. Feb. 5
Liggett dr Myers Tobacco Co.—
Common and common B (guar.)
51 Mar, 1 Holders of rec. Feb. 15
Common and common B (extra)
51 Mar. 1 Holders of rec. Feb. 15
Lily Tulip Corp. (guar.)
3734 c Mar. 15 Holders of rec. Mar. 1
30c May I Holders of rec. Apr. 26
Lincoln Nat. Life Ins.(Ft. Wayne)(qu.)
Quarterly
300 Aug. 1 Holders of rec. July 26
Quarterly
300 Nov. 1 Holders of reo. Oct. 26
Lincoln Stores, Inc.. corn. (guar.)
25c Mar, 3 Holders of roe. Feb. 23
Preferred (guar.)
SIM Mar. 3 Holders of rec. Feb. 23
100 Mar. 1 Holders of rec. Feb. 15
Link eir Co., corn.(quar.)
31M Apr. 2 Holders of tee. Mar. 15
Preferred (ouar.)
Loblaw Groceterlas Co.. el. A dr B (qu.) r20c Mar. 1 [folders of rec. Feb. 12
330. Jan. 30 Holders of rec. Jan. 30
Lock Joint Pipe (monthly)
330, Feb. 28 Holders of roe. Feb. 28
Monthly
34e. Mar. 3 Holders of rec. Mar. 31
Monthly
52 Apr.
8% preferred (guar.)
[folders of rex% Apr. 1
Loose Wiles Biscuit, preferred (guar.)._
51M Apr.
Holders of rec. Mar. 19
$1 34 Mar.
Ludlow Mtg. Assoc. (guar.)
Holders of rec. Feb. 10
Lunkeraheimer
SIM Apr.
% pref. (guar.)
Holders of rec. Mar. 22
6%% preferred (guar.)
Holders of rec. June 22
515i July
6%% preferred (quar.)
51% Oct.
Holders of rec. Sept. 21
gyi preferred ((War.)
51M
1-2-35 Holders of reo. Dee. 22
Magnin (I.) & Co., preferred (guar.).— - 3134 May 15 Holders of rec. May 6
51)4 Aug. 15 Holders of rec. Aug. 6
Preferred (guar.)
Preferred (guar.)
51% Nov. 15 Holders of rec. Nov. 5
15c Mar. I [folders of rec. Feb. 15
Manhattan Shirt Co., corn. (quar.)___ _
150 June I Holders of rec. May 15
Common (guar.)
31% Apr. 2 Holders of rec. Mar. 20
Manischevdtz (B.) Co., pref. (guar.) _ _ _
750 Apr. 2[folders of rec. Mar. 15
Mapes Corm'. Mfg.(quar.)
75c July 2 Holders of tee. June 15
Quarterly
I5c Apr. 2 Holders of rec. Mar. 25
Maul Agricultural (guar.)
40c, Mar. 1 Holders of rec. Feb. 15
May Dept. Stores, corn.(guar.)
$1 Mar. 1 Holders of rec. Feb. 16
May Hosiery Mills,Inc.14 cum.pf.(qu.)M cColl-Frontenac 011Co.,Ltd.com.(qu.) r15c Mar. 15 [folders of rec. Feb. 15
25c Mar. 1 Holden of rec. Feb. I
McIntyre Porcupine Mines (guar.)
1234c Mar. I [folders of roe. Feb. 1
Bonus
1234c Mar. 1 Holders of reo. Feb. 1
Extra
$I Apr. 2 Holders of rec. Mar. 15
McKeesport Tin Plate (guar.)
25c Mar.
McWilliams Dredging Co
Holders of rec. Feb. 15
50c Mar.
Merrimac Hat Corp.(guar.)
Holders of rec. Feb. 9
St Mar. [folders of rec. Feb. 9
8% preferred (guar.)
2.50 Mar.
Holders of rec. Feb. 20
Metal Textile Corp. (quar.)
25c Mar.
Extra
Holders of rec. Feb. 20
8134c Mar.
Holders of rec. Feb. 20
Participating preferred (guar.)
47Me. Mar. 15 Holders of rec. Feb. 23
Metro-Goldwyn Picture... Pref. (guar.)
$1 Mar. 1 Holders of roe. Feb. 20
Midland Steel Prods. Corp.,8% pf.
71 )4 Mar. 1 Holders of rec. Feb. 15
Milnor Inc
Mohawk Mining Co (liquidation)
$234 Mar. 10 Holders of rec. Feb. 10
50c Mar. 20 [folders of rec. Star. 10
Monroe Chemical, corn.(guar.)
8755o Apr. 2 Holders of rec. Mar. 15
53% preferred (quar.)
51% Mar. 1 Holders of rec. Feb. 20
Monroe Loan Society, pref. A (quar.)__
Monsanto Chemical Co (guar.)
31)4c Mar. 15 folders of rec. Feb. 24
75e Mar. 15 Itolders of rec. Feb. 28
Montreal Loan Si Mtge. Co.(guar.).
250 Mar. 15'folders of rec. Feb. 28
Extra
Moore Dry Goods Co. (guar.)
5134 Apr. 1 Holders of roe. Apr. 1
SIM July 1 Holders of rec. July
1
Quarterly
Quarterly
$134 Oct. 1 Holders of rec. Oct. 1
Quarterly
51% 1-1-'35 Holders of rec. Jan. 1
750 afar. 15 [folders of rec. Feb. 26
Morrell (John) & Co
Morris 5 & 10c. Stores. 7% pf.(guar.).-- 51% Apr, 2 Holders of rec. Mar. 20
3134 July 1 Holders of rec. June 20
7% preferred (quar.)
7% preferred (guar-)
Oct. 1 Holders of reo. Sept. 20
Morris Plan Ins. Soo.(guar.)
51 Mar. 1 Holders of roe. Feb. 28
Quarterly
SI June 1 Holders Of roe. May 26
Quarterly
$1 Sept. 1 Holders of rec. Aug. 25
51 Dec. 1 Holders of rec. Nov. 26
Quarterly
20c Feb. 28 Ilolders of rec. Feb. 21
Motor Finance Corp.(guar.)
340 Mar. 1 Holders of rec. Feb. 2-1
Mt.Diablo Oil, Mining & Develop.(qu.)




Name of Company.

Feb. 24 1934
Per
When
Share. Payable.

Boots Closed.
Dale Inclusive.

Miscellaneous (Continued).
Murphy (G. C.) Co.. common (guar.)._
40c Mar. 1 Holders of rec. Feb. 17
M uskogee Co., 6% pref. (guar.)
$114 NI ar. 1 [folders of rec. Feb. 16
Mutual Chem. of Amer., pref. (quar.)_
5114 Mar. 28 Holders of rec. Mar. 15
Preferred (guar.)
5134 June 28 [folders of rec. June 21
Preferred (guar.)
$IM Sept. 28 [folders of rec. Sept. 20
Preferred (guar.)
$134 Dec. 28 Holders of rec. Dec. 20
National Biscuit Co.. preferred (guar.). 5134 Feb. 23 Holders of roe. Feb. 145
National Bond & Share Corp. (quar.)__
25c Mar. 15 Holders of rec. Feb. 28
National Container, pref. (guar.)
500 Mar, 1 Holders ot rec. Feb. 15
Preferred
7)50c Mar, I Holders of rec. Feb. 15
Preferred (quar.)
50c June 1 Holders of rec. May 15
Preferred
h50c June 1 Holders of roe. May 15
Preferred (guar.)
50c Sept. I Holders of tee. Aug. 15
Preferred
1150c Sept. 1 [folders of rec. Aug. 15
Preferred (quar.)
50c Dee. 1 Holders of rec. Nov. 15
Preferred
h.50e Dec. 1 Holders of rec. Nov. 15
150 Apr. 2 Holders of rec. Mar. 10
National Finance Corp. of Amer.(guar.)
6% preferred (guar.)
15e Apr, 2 Holders of reo. Mar. 10
150 Apr. 2 Holders of reo. Mar. 10
Extra
National Lead Co., class A, pref.
$134 Mar. 15 Holders of rec. Mar. 2
National Linen Service, $7 pref. (s.-a.)-- $314 Mar. 1 Holders of rec. Feb. 20
50c Apr. 2 Holders of rec. Mar. 1
National Sugar Refining
10c Mar. 15 [folders of roe. Feo. 15
New Bradford Oil Co
500 Mar,28 Holders of reo. Mar. 15
New York Transportation Co.(quar.)--150 Apr. 1 Holders of rec. Mar. 16
Newberry (J. J.) Co., corn.(guar.)
81% Mar. 1 Holders of rec. Feb. 16
7% Preferred (quar.)
Niagara Share Corp., cl. A, pref.(qu.).. 51).4 Apr. 2 Holders of rec. Mar. 15
$1 Mar. 1 Holders of rec. Jan. 31
North American Match
750 Mar. 1 Holders of rec. Feb. 15
Northern Warren Corp.. pret.(quar.)- -Norwalk Tire & Rubber Co.. pt. (qu.)- -- 87340 Apr. 2 Holders of rec. Mar. 22
Norwich Pharmacal Co.(guar.)
513-4 Apr. 2 Holders 0: rec. N1ar. 20
Quarterly
513.4 July 2 Holders of rec. June 20
$1 3.4 Oct. 1 Holders of rec. Sept. 20
Quarterly
$I% Jn 1 35 Holders of rec. Dec. 20
Quarterly
100 Mar. 15 Holders of rec. Mar. 6
Oahu Sugar Co.. Ltd.(monthly)
SI% Mar. 1 [folders of rec. Feb. 19
Ogelele Flour Mills, pref. (quar.)
$115 Mar. 15 Holders of rec. Mar. 3
Ohio Oil, pref. (quar.)
52 Apr. 2 Holders of rec. Mar. 15
Omnibus Corp.. pref. (quar.)
25o Mar.31 Holders of rec. NIar. 20
Ontario Mfg. Co.. corn. (quar.)
5134 afar. 31 [folders of roe. Mar.20
Preferred (guar.)
50c Mar. I Holders of rec. Feb. 23
Oshkosh Overall, pref. (guar.)
10c June 30 Holders of rec. May 31
O'Sullivan Rubber
Patterson-Sargent Co., tom.(guar.).- -- 1214o Mar. I Holders of rec. Feb. 15
8734c Mar. 1 Holders of rec. Feb. 20
Fender (D.) Grocery, A (quar.)
50c Mar. 15 Holders of rec. Mar. 1
Penick & Ford, Ltd., corn.(guar.)
50e Apr. 1 Holders of rec. Mar. 20
Perfect Circle (guar.)
1234t Mar. 15 holders of rec. Mar. 3
Petroleum Exploration (quar.)
$134 Mar. 1 [folders of rec. Feb. 20
Pfandler Co., pref. (guar.)
50o Apr. 10 Holders of reo. Apr. 1
Phoenix Finance. pret. (guar.)
50o July 10 Holders of rec. July I
Preferred (quar.)
500 Oct. 10 Holders of rec. Oct. 1
Preferred (quar.)
50o I 10 '35 Holders of rec. 1 1 '35
Preferred (guar.)
Phoenix Hosiery Co., 7% 1st. pref. (qu.) 87.140 Mar. 1 Holders of rec. Feb. 20
$I Mar. 31 Holders of reo. Mar. 20
Pilgrim Mills(guar.)
25c Mar. 1 [folders of rec. Feb. 15
Pillsbury Flour Mills, Inc.,corn.(quar.).
5c Mar. 1 Holders of rec. Feb. 16
Plymouth Fund
250 Mar. 31 IIolders of rec. Mar. 10
Plymouth 011 (quar.)
5134 Apr. 2 Holders of rec. Mar. 15
Ponce Electric, 7% pref. (guar.)
3134 Apr. 2 Holders of rec. Slat. 20
Powdrell & Alexander. Int., pref.(qu.)
350 Mar, 1 Holders of rec. Feb. 19
Prentiss-Hall. Inc., common (quar.)...
75c Mar. 1 Holders of rec. Feb. 19
$3 preferred (Muir.)
Procter & Gamble, 5% pref.(quar.)___ _ $134 Mar. 15 Holders of rec. Feb. 23
Provident Loan & Saving (Det.),Pt.(qr.) $1 M Mar. 1
54 Apr. 1 Holders of rec. Dee. 31
Puritan Ice, 8% pref. (s.-a.)
250 Mar. 1 Holders of rec. Feb. 16
Purity Bakeries Corp.(guar.)
1
Quaker oats Co.. 8% prof.(quar.)
8134 Feb. 28 Holders of rec Feb
10c afar. 15 Holders of rec. Mar. 1
Rapid Electrotype Co
500 Mar. 1 Holders of rec. Feb. 20
Reliance International Corp.. pref. (qu.)
25e Apr. 5 Holders of rec. Apr. 2
Republic Supply Co. (guar.)
25.3 July 5 Holders of reo. July 2
Quarterly
250 Oct. 5 Holders of rec. Oct. 2
Quarterly
25c Mar. I Holders of rec. Feb. 155
Reynolds Metals Co.(quar.)
5134 Mar.30
Rich's. Inc.,
% preferred (quar.) Rolland Paper Co., Ltd., pref. (quar.).. 5134 Mar. 1 Holders of rec. Feb. 15
50 Mar,15 Holders of rec. Mar. 1
San Antonio Gold Mines
20c, Mar, 15 Holders of rec. Mar. 2
San Carlos Milling (monthly)
3715c Mar.31 [folders of rec. Mar. 17
Scott Paper Co.. corn. (guar.)
750 Mar. 1 Holders of rec. Feb. 15
Second Investors Corp.(R. I.), pf.(qu.)250 Apr. 2 Holders of rec. Mar. 15
/kola!' Mfg.(guar.)
15c Mar. 15 Holders of rec. Mar. I
Seaboard oh of Delaware (quar.)
100 Mar. 15 [folders of rec. Mar. 1
Extra
750. Mar. 1 Holders of rec. Feb. 15
Second Investors Corp,pref. (quar.)- -20c Feb. 28 Holders of rec. Feb. 26
Second Twin Bell 011 Syndicate (mo.)—
1.7e Mar. 15 Holders of rec. Feb. 28
Selected American Shares
$1
34 Mar. 1 Holders of rec. Feb. 15
Pref.
(quar.)....
Sherwin Williams Co..
h5534 Mar. 1 Holders of rec. Feb. 20
Simon (H.)& Sons, Ltd.. pref.(quar.)
Sioux City Stockyards. $6 pref. (q11.)-- 3734c May 15 Holders of rec. May 14
3734c Aug. 15 'folders of rec. Aug. 14
Preferred (guar.)
373-4c Nov. 15 Holders of rec. Nov. 14
Preferred (quar.)
30 Mar. 31 "folders of rec. Mar. 15
Siscoe Gold Mines, Ltd
20 Mar.31 Holders of rec. Mar. 15
Extra
$1 May 1
Smith (S Morgan) Co.(guar.)
$1
5$11
Quarterly
Nov
Quarterly
15c Mar. 15 Holders of rec. Feb. 23a
Socony-Vacuum Corp
60c Apr. 2 Holders of rec. Mar. 10
South Porto Rico Sugar Co., corn.(qu.).
52 Apr. 2 [folders of rec. Mar. 10
Preferred (guar.)
100 Mar. 1 Holders of rec. Feb. 15a
Southern Pipe Line
250 Mar.31 Holders of rec. Star. 15
Spencer Kellogg & Sons, corn. (guar.)
Spiegel, May. Stern,634% pref.(guar.). /15134 Star. 1 Holders of too. Feb. 21
/4134 May 1 holders of roe. Apr. 16
634% preferred
12340 Apr. 2
Standard Coosa-Thatcher (guar.)
al% Apr. 16 Holders of rec. Apr. 16
7% preferred (guar.)
250 Mar. 15 Holders of rec. Feb. 15
Standard Oil of Calif.(war.)
25c Mar. 15 Holders of rec. Feb. 15
Standard 011 Co of Indiana (quar.).....
500 Apr. 30 Holdere of recs. Apr. 2
Standard 011 Co. of Kansas (quar.)
250 Mar. 15 Holders of rec. Feb. 28
Standard 011 Co. of Kentucky (quar.)..
250 Mar.20 Holders of rec. Feb. 20
Standard 011 Co. of Nebraska (quar.).
250 Feb. 24 Holders o: rec. Feb. 9
Stein (A)& Co.(special)
95c Mar. 1 Holders of rec. Feb. 15a
Sterling Products, Inc. (quar.)
Strawbridge & Clothier, pref., A (guar.) 5134 Mar, 1 Holders of rec. Feb. 14
Stromberg-Carlson Tel. Mfg.,
$134 Mar. 1 Holders of rec. Feb. 10
635% preferred (guar.)
250 Mar. 15 Holders of rec. Feb. 26
Sun Oil Co.,corn.(guar.)
$134 Mar. 1 Holders of roe. Feb. 10
Preferred(quar.)
100 Mar. 1 Holders of rec. Feb. 17
Sutherland Paper Co., common
% Mar.31 Holders of roe. Mar. 2
Texas Gulf Producing
50o Mar. 15 Holders of rec. Mar. 1
Texas Gulf Sulphur Co.(quar.)
Tex-O-Kan Flour Mills,7% pref.(quar.) $134 Mar. I Holders of rec. Feb. 15
100 Feb. 28 Holders of rec. Feb. 26
Third Twin Bell Oil Syndicate (b-m'thlY)
Timken Detroit Axle Co.. pref,(guar.)- - $134 Mar. 1 Ilolders ot rec. Feb. 20
150 Mar. 5 Holders of rec. Feb. 16
Timken Roller Bearing Co
500 Mar.
Holders of rec. Feb. 21
Tobacco & Allied Stocks, Inc
Trustee Food Shares. series B coupon_ 7.1870 Mar.
Mar.
Trustee Standard Oil Shares. B coupon_ _
7.163
72
c Fe 2 [folders of rec. Feb. 26
Twin Bell Oil Syndicate (monthly
25c Mar.3 Holders of rec. Mar. 12
Underwood Elliott Fisher, corn. (qua".)..
$1.34 Mar.3 Holders ot rec. Mar. 12
Preferred (guar.)
30e Mar.
Union Tank Car Co.(Chicago)(quar.)..
Holders of reo. Feb. 16
Union Twist Drill Co.. pref.(guar.) _ -- 513-4 Mar.3 Holders of rec. Mar.20
400 Mar. [folders of rec. Feb. 7
United Biscuit Co. of Amer., com.(qu.)_
$134 May
Holders of rec. Apr. 16
Preferred (guar.)
250 Mar.2 Holders of rec. Mar. 7
United Elastic Corp.(guar.)
United States Corp..56 pref.(guar.)
_ 813.40 Slat.! Holders of tee. Feb. 23
$234 Afar.
United States Envelope Co., common._
Holders of rec. Feb. 14
Preferred (s -a.)
Holders of rec. Feb. 14
1334 Mar.
251 Mar.
United States Freight Co.(quar.)
Holders of rec. Feb. 17
it Mar. 1 Holders of roe. Mar. 6
U. S. Petroleum Co. (quar.)
be June 1 Holders of roe. June 5
Quarterly
lo Sept. II Holders of tee. Sept. 6
Quarterly
it Dec. 1 Holders of rec. Dec. 5
Quarterly

1355

Financial Chronicle

Volume 138
Per
When
Share. Payable.

Name of Company.

Books Closed
Days Inclusive.

Miscellaneous (Concluded).
U. S. Pipe & Foundry Co.. corn. (guar.) 12Hc Apr. 20 Holders of rec. Mar. 31
Common (guar.)
12Hc July 20 Holders of rec. June 30
Common (guar.)
121.60 Oct. 20 Holders of ree. Sept.29
Common (guar.)
12Hc 1-20-35 Holders of rec. Dec. 31
Preferred (guar.)
30c Apr. 20 Holders of rec. Mar. 31
Preferred (guar.)
30c July 20 Holders of rec. June 30
Preferred (guar.)
30o Oct. 20 Holders of rec. Sept. 29
Preferred (guar.)
30c 1-20-35 Holders of rec. Dec. 31
United States Playing Card (guar.)
25c Apr. 2 Holders of rec. Mar.22
United States Steel, pref
35 of1% Feb. 27 Holders of rec. Feb. 1
United Stores, pref.(guar.)
81 Si c Mar. 15 Holders of rec. Feb. 23
Utica Knitting, 7% pref
147 Mar. 1 Holders of rec. Jan. 31
Van Raalte Co.,Ina, 1st pref
h$36H Mar. 1 Holders of rec. Feb. 16
let preferred (guar.)
S1H Mar. 1 Holders of rec. Feb. 16
Stamped 1st preferred
h$5 34 Mar. 1 Holders of ree. Feb. 16
Vick Chemical Co., corn. (guar.)
50e. Mar. 1 Holders of rec. Feb. 13
Extra
10e. Mar. 1 Holders of rec. Feb. 13
Viking Pump Co., pref. (guar.)
60c Mar. 15 Holders of rec. Mar. 1
Virginia Coal & Iron (guar.)
250. Mar. 1 Holders of rec. Feb. 15
Extra
$3 Apr. 20 Holders of rec. Apr. 10
Vortex Cup Co., class A (guar.)
6234c Apr. 2 Holders of rec. Mar.15
Class A (guar.)
62Ho July 2 Holders of rec. June 15
Vulcan Detinning Co., coin. (special).—
3% Apr. 20 Holders of rec. Apr. 10
Preferred (quer.)
1 H% Apr. 20 Holders of ree. Apr. 10
Preferred (guar.)
15j1H % July 20 Holders of rec. July 10
Preferred (guar.)
% Oct. 20 Holders of rec. Oct. 10
Warelua Agricultural(guar.)
600 Feb. 25 Holders of rec. Feb. 28
Weill Raphael & Co,8% pref. (5.-a.).._
$4 Mar. 1 Holders oi rec. Feb. 1
Wesson Oil & Snowdrift Co., pref.(au.).
$I Mar. 1 Holders of rec. Feb. 15
Western Auto Supply Co.—
Class A & B common (guar.)
750 Mar. 1 Holders of ree. Feb. 15
Weston (G.), Ltd. (guar.)
25e Apr. 1 Holders of rec. Mar.22
Westvaco Chlorine Products, corn. (qu.)
10e Mar. 1 Holders of rec. Feb. 15
Whitman (Wm.), pref. (quar.)
S1 H Mar, 15 Holders of rec. Mar. 1
Winstead Hosiery (guar.)
$155 May I Holders of rec. Apr. 15
Quarterty
$134 Aug. 1 Holders of rec. July 15
Quarterly
$1 34 Nov. 1 Holders of rec. Oct. 15
Wiser 011 Co.(guar.)
25e Apr. 2 Holders of rec. Mar. 12
Woolworth (F. W.),k Co., corn.(guar.).
600 Mar. 1 Holders of rec. Feb. 9
World Radio Corp., 6% pref. (guar.)._
$1 34 Mar. 1 Holders of rec. Feb. 20
Wrigley(Wm.)Jr., Co.(monthly)
250 Mar. 1 Holders of rec. Feb. 20
Monthly
250 Apr. 1 Holders of rec. Mar.20
Special,
500 Mar. 16 Holders of rec. Mar. 8
t The New York Stock Exchange has ruled that stock will not be quoted exdividend on this date and not until further notice.
The New York Curb Exchange Association has ruled that stock will not be
quoted ex-dividend on this date and not until further notice.
a Transfer books not closed for this dividend.
d Correction. e Payable in stock.
f Payable in common stock. g Payable in scrip. h On account of accumulated
dividends. .1 Payable In preferred stock.
1 Subject to the 5% NIRA tax.
n Commercial National Corp. declared the first liquidating dividend, payable in
stock of the Commercial National Bank & Trust Co.. on the basis of one share ot
bank stock for each 10 shares of Commercial National Corp. held. There will be no
record date, and stockholders in order to obtain the liquidating dividend should
present their certificates at the bank.
o Commercial Investors Trust declared a dividend at the rate of 1-52 of 1 oh. of
corn. stock on the cony. pref. stock, opt, series of 1929, or in cash at the holders'
option at the rate of $134 per share.
p Blue Ridge Corp. pays 1-32 of one share of common stock or 75c. in cash at
the option of the holders of $3 convertible preferred stock.
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.
u Payable In U. S. funds. o A unit. w Less depositary expenses.
z Less tax. y A deduction has been made for expenses.

Weekly Return of New York City Clearing House.—
Beginning with March 311928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. We give the
statement below in full:

STATEMENT OF MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY, FEB. 17 1934.
Net Demand
Deposits,
Average.

Dims
Deposits.
Average.

$
84,112,000
249,662,000
a855,554,000
271,691,000
b876,791,000
221,365,000
481,917,000
175,194.000
324,659,000
334,506,000

$
9,022,000
31,862.000
156,002,000
27,506,000
55,143,000
99,239,000
46,597,000
21,370,000
21,500,000
13,424,000

4.000,000
148,000,000
500,000
25,000.000
10,000,000
10,000,000
12.500,000
7.000,000
8,250.000

25.553,000
4,627,400
59,187,900 c1,093,757,000
39,840,000
3,056,600
60,030,600 4466.198,000
19,096.000
10,669,300
41,325,000
5,269,900
184.093,000
21,047,600
45.545,000
7.447,800
41,031,000
4,682,000

1,964,000
93,805.000
3,071.000
37,739.000
275,000
4,501,000
17,297,000
1,869,000
31.622.000

non

ngs 435 5nn 5 581 859 000

673 MR OM

*Surplus and
Undivided
ProfUs.

• Capital.

Clearing House
Members.

$
6,000,000
Bank of N Y de Trust Co
20,000,000
Bank of Manhattan Co...
National City Bank__ e127.500,000
20,000,000
Chem Bank & Trust Co..
90.000,000
Guaranty Trust Co
32,935,000
Manufacturers Trust Co.
21,000.000
Cent Hanover Bk & Tr Co
15,000,000
Corn Each Bank Tr Co..
10,000,000
First National Bank
50,000.000
Irving Trust Co

$
9,745,800
31,931,700
e35,847,200
47,490,300
177.985,600
10,297,500
61,264,400
16,011,300
72,278,400
57,564,200

..1134

Continental Bk & Tr Co_
Chase National Bank
Firth Avenue Bank
Bankers Trust Co
Title Guar & Trust Co
Marine Midland Tr Co._
New York Trust Co......
Comm'l Nat Bk & Tr Co
Public Nat Bk & Tr Co.

017 Re%

*As per official reports: National. Dec. 30 1933; State, Dec. 30 1933; trust
companies. Dec. 30 1933. e As of Jan. 13 1934.
Includes deposits in foreign branches as follows: a 3206,748,000, b $67,353,000,
c$65,873.000, d $23,820,000.

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 Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly to the Association and the returns of these two banks
are therefore no longer shown below. The following are
the figures for the week ended Feb. 16:
INSTITUTIONS NOT IN THE CLEARING HOUSE WITH THE CLOSING
OF BUSINESS FOR THE WEEK ENDED FRIDAY, FEB. 16 1934.
NATIONAL AND STATE BANKS—AVERAGE FIGURES.
Loans
Disc. and
Investments.
$
Manhattan—
21,152,800
Grace National
Trade Bank of N.Y. 2,806,328
Brooklyn13.nr.1.. V..innal

4

oan

MA

Res. Dep., Dep. Other
N. Y. and Banks and
Elsewhere. Trust Cos.

Cash.
$
102,300
107.657

$
1,399,000
746,479

78090

312.000

Gross
Deposits.

$
$
2,208,400 20,386,100
387,175 3,399,945
185.000

4.869.000

TRUST COMPANIES—Average Figures.
Loans,
Disc. and
Investments.
Manhattan—
Empire
Federation
Fiduciary
Fulton
Lawyers County....
United States
Brooklyn—
Brooklyn
1Cfncre Vnunto

Res. Dep., Dep. Other
N. Y. and Banks and
Elsewhere. Trust Cos.

Cash.

Gross
Deposits.

$
$
$
60,136,000 *3,017,200 11,040,400
398,707
74,639
6,151,320
382,165
*566,328
8,917,360
913,100
17,075.100 *2.275,700
821,600
29,875,800 *5,503,100
65,655,613 6,045,882 12,974,385

$
$
1,213,600 62,603,900
611.074 5,640,820
577,368 8,568,374
574,300 15,829,100
33,716,700
56,563,987

2,291,000 17.329,000
i 7n1 555 5 007 281

206,000 93,566,000
27.974.447

90,027,000
mtn

94 and

•Includes amount with Faders Reserve as follows: Empire. $2,057,800; Fiduciary, $349,976; Fulton, $2,133,100; Lawyers County, $4,835,800.

Condition of the Federal Reserve Bank of New York.
The following shows the condition of the Federal Reserve Bank of Now York at the close of business Feb. 21 1934, in
comparison with the previous week and the corresponding date last year:
Assets—
Gold certificates on hand and
from U.S. Treasury (x)
Gold
Redemption fund—F. R. notes
Other cash

Feb. 21 1934. Feb. 14 1934. Feb. 21 1933.

Feb. 21 1934. Feb. 14 1934. Feb. 21 1933.
$
S
$
due

Total reserves
Redemption fund—F.R. bank notes____
Bills discounted:
Secured by U. S. Govt. obligations___
Other bills discounted

920,703,000

861,482.000

8,901,000
52,072,000

9,128,000
55,588,000

981.676,000
2,930,000

926,198,000
3.107,000

828,557,000

11,251,000
20,405,000

11,783,000
20,233,000

30,748,000
32,948,000

90,211.000
639,745.000
14,485,000
84,116,000

Liabilities—
609,925,000
F. R. notes in actual circulation
52,655,000
F. R. bank notes in actual circulation..
Deposits—Member bank reserve acc't... 1,038,251,000
Government
18,594.000
Foreign bank (see note)
2,762,000
Special deposits—Member bank
1,661,000
Non-member bank
889,000
Other deposits
30,134,000
Total deposits

Total bills discounted
Bills bought In open market
U. S. Government securities:
Bonds
Treasury notes
Certificates and bills

31,656.000
5,614,000

32,016,000
5,293,000

63,696,000
66,350,000

167,783,000
347,621.000
301.351.000

167,783,000
346,021.000
302,951,000

187,234,000
180,229,000
357,948,000

Deferred availability items
Capital paid In
Surplus
Subscrip. for Fed. Dep.Ins. Corp.stock:

Total U.S. Government securities-Other securities (see note)

816,755,000
783,000

816,755,000
783.000

725,411,000
4.159,000

Called for payment on April 15
All other liabilities

Total bills and securities Dee note)---Gold held abroad
Due from foreign banks (see note)
F. R. notes of other banks
Uncollected items
Bank premises
Federal Deposit Insurance Corp. stock....
All other assets

854,805,000

854,847,000

859,616,000

1,296,000
3,442,000
99,587,000
11,424,000
21,265,000
27,031,000

1,296.000
5,054,000
139,574,000
11,424,000
21,265,000
26,326,000

1,281,000
4,054,000
102,859,000
12,818,000

Paid

Total assets

Total liabilities

602,490,000
52.635,000
995,622,000
16,193,000
1,501,000
1,809,000
1,091,000
20,877,000

610,470,000

1,092,291,000 1,037,093,000

981,737,000

87,831,000
58.510,000
45,217,000

136,713,000
58.510,000
45,217,000

96,411.000
58,454,000
85,058,000

21,265,000
21,265,000
14,500,000

21,265,000
21,265,000
13,903,000

4,943.000

938,922,000
12,963.000
21,303,000
8,549,000

2.003,459,000 1,989,091,000 1,837,073,000

Ratio of total reserves to deposit and
F. R. note liabilities combined

57.7%

56.5%

52.0%

Contingent liability on bills purchased
for foreign correspondents

1,706,000

1,356,000

9,206,000

27,888,000

2,003,459,000 1,989,091.000 1,837,073,000

•"Other cash" does not include Federal Reserve notes or a bank's own Federal Reserve bank notes.
NOTE.—Beginning with the statement of Oct. 17 1925, two new Items were added in order to show separately the amount of balances held abroad and amounts due
to foreign correspondents. In addition, the caption "All other earning assets." previously made up of Federal Intermediate Credit bank debentures, was changed to
“Other securities," and the caption, "Total earning assets" to "Total bills and securities." The latter term was adopted as a more accurate description of the total of the
discount acceptances and securities acquired under the provisions of Sections 13 and 14 of the Federal Reserve Act, which it was stated are the only items included therein.
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 difference, the difference itself having been appropriated as profit by the Treasury under the provisions
of the Gold Reserve Act of 1934.




Feb. 24 1934

Financial Chronicle

1356

Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon, Feb.22,and showing the condition
of the twelve Reserve banks at the close of business on Wednesday. In the first table we present 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 FE DERAL RESERVE BANKS AT THE CLOSE OF BUSINESS FEB. 21 1934.
Feb. 21 1934. Feb. 14 1934. Feb. 7 1034. Jan. 31 1934. Jan. 24 1934. Jan. 17 1934. Jan. 10 1934. Jan. 3 1934. Feb. 21 1933.
$
A SSETS.
2,567,317,000 2,599.895.000 2,618,124.000
Gold with Federal Reserve Agents
636,881,000
3,712,311,000 3,582,092,000 3,513,171,000 3,513,884,000 947,440.000
Gold ctfs. on hand & due fr. U. S.(a)
2 432,756,000
2,569,167.000
Gold
626,653.000
643,396,000
675.135,000
Gold settlement fund with F. R. Board_ _
273.878.000 278.039,000 279.594.000
Gold and gold certificates held by banks_
48,756,000
44.540.000
44,960.000
43.974.000
43.356,000
42,478,000
43,356,000
42,234,000
41,503,000
Redemption fund (F. R. notes)
213,904,000 222,460,000 220,899,000 234.848.000 248,163.000 244,870.000 250,611.000 226,799.000 259,837,000
Other cash •
3,967,718,000 3,846,786,000 3,776,548,600 3.792.088,000 3,808,126,000 3.805,174,000 3,816,901,000 3.795.710.000 3,378,230,000

Total reserves_
Redemption fund—F. R. bank notes
Bills discounted:
Secured by F. S. Govt. obligations__ _ _
Other bills discounted
Total bills discounted
Bills bought in open market
U.S. Government securities—Bonds
Treasury notes
Certificates and bills

12,159,000

12,387,000

12,520,000

12,977,000

13.004.000

12.527.000

12,864,000

13,086.000

18.917,000
47.550,000

19,264,C00
49,141,000

21,020,000
52,307.000

26.377.000
56,355.000

35,910,000 ••35,553.000
61,320.000 ••65,762,000

34,424,000
69,268,000

35,176.000
70.943.000

105,102,000
222,036.000

97.230,C00 101,315,000 103.692.000 106,119.000
73.327.000
82,732.000
68,405,000
66,467,000
96,899,000 111,397,000 104,126,000 111,939,000 113,211.000 121,062.000
86.086,000
75,111,000
442.775,000 443,045,000 442.785,000 445,012.000 442,781.000 442,807,000 442.782.000 442.817.000
1,031,256,000 1,026.142,000 1,028,137,000 1,028.139.000 1.053,134.000 1,053,163.000 1,053,139.000 1,053,240.000
957,704.000 962,837,000 960,821,000 960,819.000 935.820.000 935.820.000 935,825.000 935,853,000

327,138.000
179,576,000
421,021,000
452,661,000
960,551,000

Total U. S. Government securities.. 2,431,735,000 2,432,024,000 2,431.743.000 2,433,970.000 2.431,739.000 2,431,790.000 2,431,746,000 2,431,910,000 1,834,233,000
4.697,000
1,462,000
1,493,000
1,413.000
1,293.000
1,293,000
1.293,000
1,293,000
Other securities
1,293,000
Total bills and securities
2,574,606,000 2.587,808,000 2,603,262.000 2,629.392,000 2,634,388,000 2,646.457.000 2.650,111.000 2,660,584.000 2,345,644,000
4,319,000
3,120.000
Gold held abroad
3,498.000
3.382,000
3.333.000
3,390.000
3,395.000
3.392,000
3,392,000
3.400,000
Due from foreign banks
3,400,000
13,289,000
18,541,000
20,579,000
20.512.000
19,783.000
15,377,000
15.780,000
16,222,000
Federal Reserve notes of other banks_ _ _
15,027,000
333.656,000
504.940.000
361,796,000
416,635.000
377.583,000
364,079,000
364.053,000
499,174,000
396,209,000
Uncollected items
53.962,000
51,914.000
51,884,000
51.980.000
51.980.000
52,365,000
52.339,000
.2,382,000
Bank premises
52,383,000
64,680.000
69,650,000
69,6E0,000
69,650,000
69,650.000
69,650,000
69,650,000
Federal Deposit Insurance Corp. stock._
52,998,000
46,340.000
45,491,000
47.340.000
48,987,000
45,914,000
49,025,000
46,483.000
46,969.000
All other resources
6,181,277,000
7,028,567,0007.003,549,000
7,077,984,000
7,030,016,000
6,943,107,000
6.988.696,000
7,134,292,000
7,138,121,000
Total assets
LIABILITIES.
F. R. notes in actual circulation
2,970,309,000 2,952,541,000 2,946,226,000 2,926,243,000 2.931.359.000 2,959,556,000 2,998,760.000 3,071.762.000 3,000,248,000
F. R. bank notes In actual circulation__ _
197,750,000 199,358,000 201,984,000 203,057.000 203.176,000 204.536,000 205,191,000 208.014,000
2,271.129,000
Deposits—Member banks'reserve account 2,830,118,000 2,850,888,000 2,735,701.000 2.651,945,000 2.850,961.000 .788,073,000 2,776,857,000 2,709,919,000
40,729,000
23,287,000
58,293.000
65,240,000 105,356,000
84.912,000 241.860,000
45,654,000
165,546,000
Government
60,799,000
4.492,000
4.699,000
3,955.000
4.483.1'00
3,952,000
7,989,000
3,610,000
4.871,000
Foreign banks
45,829.000
46.394.000
44.900.000
43.068.000
38,711,000
43,248,000
36,883,000
30,405,000
Special deposits—Member bank
9,832.000
9,692.000
10,455.000
10.005,000
10,438.000
10,183,000
11,419,000
bank
11,416,000
Non-member
26,741,000
84,088,000
84,151,000 111,634,000
79.266,000
84,790,000
83,847,000
78.115,000
85,528,000
Other deposits
Total deposits
3,127,884,000 3.026,569,000 2,962,541,000 3,035,035,000 3.053,023,000 3.036,890.000 3.007.144,000 2,877.872,000 2,399,398,000
420.675,000 359,809,000 480,779,000 331,695,000
Dererred availability items
382,533,000 497.108.000
145,309,000 145,081,000 145,222,000 145,359,000 145,400,000 145.078.000 144,046,000 144,903,000 150,474,000
Capital paid in
138,383,000 138,383.000 138,383,000 138,383,000 138,383,000 138,383,000 148,322.000 277,680.000 278,599,000
Surplus
Subscrip. for Fed. Dep. Ins. Corp. stock:
64,680,000
69.650.000
69,650,000
69,650,000
69,650,000
69,650,000
69,650,000
Paid
64.680,000
69,650,000
69.650.000
69,650.000
69,650,000
69,650,000
69,650,000
Called for payment April 15
20,863,000
32.559.000
35.035.000
33,566.000
34.673.000
34,843,000
44,332,000
35.952.000
36,653,000
All other liabilities
Total liabilities
7,138,121,000 7.134,292,000 6,943,107,000 6.988,696,000 7,030,016,000 7.077.984,000 7,028.567,000 7.093,569,000 6,181.277,000
Ratio of total reserves to deposits and
62.6%
63.6%
63.6%
63.9%
65.1%
64.3%
F. It. note liabilities combined
Ratio of total gold reserve & 0th. cash to
03.8%
63.6%
63.5%
combined
liabilities
63.6%
63.6%
deposit & F. R. note
Contingent liability on bills purchased
30.284,000
3.809,000
4.006.000
4,477,000
4,474,000
4,284,000
4,478,000
4,477.000
4,635,000
for foreign correspondents
Maturity Distribution of Bills and
Short-term Securities1-15 days bills discounted
16-30 days bills discounted
31-60 days bills discounted
61-99 days bills discounted
Over 90 days bills discounted

52,196,000
5,415,000
4.736,000
3,671,000
449,000

52,872,000
5,218,000
4,998,000
4,833,000
484,000

54,155,000
6,456,000
7,660,000
4,469,000
587,000

61,744,000
7,341,000
9.130,000
3,245,000
672,000

76,294.000
4.041,000
12,367,000
3,707.000
821,000

76,555.000
6,334.000
11,190,000
6,285.000
951,000

77,116,000
7,135,000
8,827.000
9,168,000
1,446,000

78,426,000
6,110,000
10,711,000
9,497,000
1.375,000

239,487,000
21,807,000
31,696.000
23,619,000
10,529,000

Total bills discounted
1-15 days bills bought in open market_ _ _
16-30 days bills bought in open market_ _ _
31-60 days bills bought in open market.._ _
61-90 days bills bought in open market...
Over 90 days bills bought in open market

66,467,000
31,957,000
15,542,000
19,103.000
8,460,000
49.000

68.405,000
30,832,000
21,922,000
21,740,000
8,591,000
1,000

73,327.000
27,138,000
33,381,000
21,412,000
14,962.000
6,000

82,732,000
33,092,000
31,661,000
29,153,000
17,431.000
60.000

97,230,000
29,242.600
25.400.000
40,431.000
8,943.000
110.000

101.315,000
23,989.000
27.943.000
47,241,000
12,662,000
104,000

103.692.000
20.354.000
28,907.000
48,707.000
15,089,000
154,000

106,119,000
21.960,000
24,618.000
52.690.000
21,633,000
161,000

327,138,000
59,312,000
30,319,000
35,753.000
48.481,000
211,000

Total bills bought in open market
1-15 days U. S. certificates and bills_ _ _ _
16-30 days U. S. certificates and bills_ _
31-60 days U. S. certificates and bills_ 61-90 days U. 5. certificates and bills—.
Over 90 days U. S. certificates and bills

75,111,000
87,693,000
209,610,000
155,433,000
111,830,000
393,938,000

86,086,000
72.170,000
201,999,000
153.170.000
144,928,000
390,570.000

96,899,000
58,401,000
87.693,000
304,930,000
138,643,000
371,154,000

111,397,000
45,260.000
74,170,000
316.087,000
128,893,000
404,409,000

104,126.000
31,513.000
58,401.000
332,463.000
155.133,000
358,310.000

111.939,000
46,703,000
47,260,000
297,554.000
148,170.000
396,133,000

113,211,000
68.998,000
31,513,000
160,444.000
321,890,000
352,980,000

121,062,000
73,348,000
46.703,000
121.430,000
312,054,000
382.562,000

174,076,000
89,950,000
138,686,000
92,250,000
197,797,000
441,868,000

TotalU. S. certificates and bills
1-15 days municipal warrants
16-30 days municipal warrants
31-60 days municipal warrants
61-90 days municipal warrants
Over 90 days municipal warrants

957,704,000
1,276,000

962.837.000
1,276,000

960,821,000
1,230,000
46,000

960,819,000
1,240,000
36,000

935,820.000
1,240.000

935,820.000
1,360,000
36,000

935,853,000
1,410,000
30.000
36.000

960,551,000
4,672,000

36,000

935,825.000
1,399.000
10,000
36.000

Total municipal warrants
Federal Reserve Notes—
Issued to F. It. Bank by F. It. Agent
Held by Federal Reserve Bank

$

17,000

17,000

17,000

17,000

17,000

17.000

17.000

17,000

25.000

1,293,000

1,293,000

1,293,000

1.293,000

1,293,000

1,413.000

1,462.000

1,493,000

4,697.000

3,223,491,000 3,204,150,000 3,200,844,000 3,180,943,000 3.202.007,000 3,228,043,000 3,291.053.000 3.344,122,000 3,249,887,000
253,182,000 251,609,000 254,618,000 254,700,000 270,648,000 268,487,000 292,293,000 272,360.000 249,639,000
2,970,309,000 2,952,541,000 2,946,226,000 2,926,243,000 2,931,359,000 2.959,556,000 2.998,760,000 3,071,762,000 3,000,248,000

In actual circulation
Collateral Held by Agent as Security for
Notes Issued to Bank—
Gold cas.on hand & due from U.S. Tress
By gold and gold certificates
Gold fund—Federal Reserve Board
By eligible paper
U. S. Government securities

988,742,000
2,663,318,000 2.573,318,000 2,541,818,000 2516317.0001 1.474.073,000 1,478,072,000 1,478.150.000 1.476,879,000 1,379,245,000
1,067.745,000 1.089,245,000 1,121,745.000 1,141,245,000
435,547,000
185,060,000
176.081.000
174,952,000
165,201,000
137,326,000
122,358,000
110,000,000
158,736.000
496,100,000 548.100,000 561.100,000 570,100,000 558.800,000 563,100,000 564,500.000 601.100.000 473,700,000

3.269,418,000 3.243,776,000 3.240.246,000 3,245,153.000 3.265.619.000 3,305,369,000 3,340,476,000 3,404.284.0003.277.2.84,000
Total collateral
•"Other cash" does not include Federal Reserve notes or a bank's own Federal Reserve bank notes. I Revised.was on Jan. 31 1934 devalued from 100 cents to
X These are certificates given by the U. S. Treasury for the gold taken over from the Reserve Banks when the dollar
profit by the Treasury under the provisions
59.06 cents, these certificates being worth less to the extent of the difference, the difference itself having been appropriated as
of the Gold Reserve Act 01 1934.
CLOSE OF BUSINESS FEB. 21 1934,
WEEKLY STATEMENT OF RESOURCES AND LIABILITIES OF EACH OF THE 12 FEDERAL RESERVE BANKS AT
Two Ciphers (00) Omitted.
Minneap Kan.City, Dallas. San Fran.
Louis.
St.
Chicago.
Boston. New York. Phila. Cleveland. Richmond Atlanta.
Total.
Federal Reserve Bank of—
$
ASSETS.
$
Gold certificates on hand and due
270,597,0
3,712,311,0
Treasury
S.
U.
from
41,503,0 2,989,0
Redemption fund—F. R. notes_
213,904,0 18,337,0
Other cash

920,703,0 218,804,0 326,995,0 157,274.0 146,339,0
8,901,0 3,831.0 4.020,0 1.999,0 2,888,0
52,072,0 34,066,0 14,086,0 9,212,0 10,728,0

$
$
3
$
$
$
889,386,0 17.1,762.0 101,773,0 161,275,0 91,588,0 252,815,0
757,0 5,508,0
903,0
1,441,0
1,380,0
6,886,0
29,139,0 8,717.0 9,691.0 8,817,0 5,877,0 13,162,0

3.967.718.0 291.923.0

981.676.0 256.701.0 345.101.0 168.485.0 159.955.0

925.411.0 184.859,0 112,905,0 170,995,0 98,222,0 271,485,0

T•••a I POOPPVP31




$

$

$

1

$

Financial Chronicle

Volume 138

1357

Weekly Return of the Federal Reserve Board (Concluded).
Two Ciphers (00) Omitted.

Total.

RESOURCES (Concluded)Redem. fund-F. R. bank notes_
Bills discounted:
Sec. by U. S. Govt. obligations
Other bills discounted
Total bills discounted
Bills bought in open market
U. S. Government securities:
Bonds
Treasury notes
Certificates and bills

Boston. New York.

8
12,159,0

8
1,250,0

18,917,0
47,550,0

$
2,930,0

Phila.

Cleveland. Richmond Atlanta.

Chicago.

St. Louis. Minneap. Kan.City. Dallas. San Fran.
S
$
$
$
$
597,0
565,0
500.0
579,0
774,0

$
1,100,0

$
1,268,0

3
229,0

$
464,0

$
1,903,0

786,0
945.0

11,251,0 4,428,0
20,405,0 15,105,0

778,0
2,757.0

174,0
2,026,0

96,0
1,373,0

517,0
1,599,0

312,0
259,0

129,0
1,175,0

39.0
492,0

10,0
45,0

397,0
1,369,0

66,467,0 1,731.0
75,111,0 16,259,0

31,656,0 19,533,0
5,614,0 4,117,0

3,535,0
7,932,0

2,200,0
2,326,0

1,469,0
2,946,0

2,116,0
9,534,0

571,0
2,981,0

1,304,0
2,023,0

531,0
2,790,0

55,0
9,954,0

1,766,0
8,635,0

442,775,0 24,399,0
1,031,256,0 69,410,0
957.704,0 63,873,0

167,783,0 28,070,0 32,160,0 14,124,0 10,758,0
347,621,0 72,430,0 94,190,0 41,369,0 31,484,0
301,351,0 66,620,0 86,674,0 38,070,0 28,974.0

76,948,0 14,493.0 16,290,0 14,114.0 18,527,0 25,109.0
173,474,0 40,989,0 25,668,0 36,106,0 24,970,0 73.545,0
186,021,0 37,718.0 23,624,0 33,224,0 22,978,0 67,677,0

Total U. S. Govt. securities_ 2,431,735,0 157,682,0
Other securities
1,293,0

816,755,0 167,120,0 213,024,0 93,563,0 71,216,0
783,0
510,0

437,343,0 93,200,0 65,582.0 83,444,0 86.475,0 166,331,0

Total bills and securities
2,574,606,0 175,672,0
Due from foreign banks
3,400,0
256,0
Fed. Ras. notes of other banks..._
15,027,0
375,0
Uncollected Items
398,209,0 42,506,0
Bank premises
52,383,0 3,224,0
Federal Deposit Ins. Corp.stock_
69,650.0 5,115,0
All other resources
46,969,0 1,001.0

854.808,0 191,260,0 224,491,0 98,089.0 75,631.0
1,296,0
370.0
325,0
129,0
119,0
3,442,0
476,0 1,196,0 1.136,0 1,311.0
99,587,0 33.239,0 36,922,0 33,498,0 14,475,0
11,424,0 3,969,0 6,788,0 3,128,0 2,372,0
21,265.0 7,310.0 7,073,0 2,904,0 2,636,0
27,031,0 5,469.0 1.541,0 2,491,0 3,528,0

448,993.0 96,752,0 68,909,0 86,765,0 76.484,0 176,732,0
443,0
15,0
11.0
95.0
95,0
241,0
2,678,0
759,0
573,0 1,042,0
323.0 1,716,0
45,702,0 19,690,0 9,606,0 24,297,0 17,150.0 19,537.0
7,332,0 3,110,0 1,657,0 3,485.0 1,754,0 4,090.0
9,874.0 2,547,0
1,755,0 2,066.0 2,180.0 4,925.0
1,307,0
399,0 1,383,0 1,026,0
900.0
893,0

Total resources

7,138.121.0 521,322,0 2.003,459,0 499.914,0 624,705,0 310.039,0 260,491,0 1,443,698,0 308,728,0
197.364,0 290,271,0 197,687.0 480,393,0
LIABILITIES.
F. R. notes in actual circulation_ 2,970,309,0 220,621,0 609,925,0 235,308,0 288,676,0 146,311,0
123,349,0 766,343,0 137,030,0 95,989,0 108,396,0 41,318.0 197,043,0
F. R. bank notes In act'l Wean
197,750.0 21,956,0
52,655,0 19,348,0 22,275,0 4,379,0 4,458,0
25,789,0 9,006.0 7,000,0 9,390,0 8,923,0 12,571,0
Deposits:
Member bank reserve acc000t_ 2,830,118,0 192,751,0 1.038,251,0 154,246,0 215,360,0 95,310,0
72,844,0 476,249,0 101,105.0 57,241,0 122,526,0 109,742.0 194,493.0
Government
165,546.0 16,041,0
18,594,0 3,326,0 11,791,0 8,906,0 18,563,0
56,096,0 9,611.0 9,244,0 4,266,0 2,803.0 6,305.0
Foreign bank
4,871,0
232,0
2.762,0
336,0
310.0
123,0
113,0
406,0
106,0
74,0
90.0
90,0
229,0
Special-Member bank
30,405.0
1,661,0 4,762,0 4,631.0 1,506,0 1,769,0
155,0
8.178,0 2,472,0
966,0 1,808.0
326,0 2,171,0
Non-member bank
11,418,0
889,0 1,976,0
126,0
688,0
301,0
6,525,0
370,0
541.0
Other deposits
85,528,0 2,422,0
30.134,0 1,788,0 1,393.0 2,551,0 7,376,0
1,169.0 8,741,0 6,142,0 7,284,0
1,958.0 14,570,0
Total deposits
3,127,884,0 211,601,0 1,092,291,0 166,434,0 233,611,0 109,084,0 100,966,0 542.098,0 128,580.0
74,037,0 135,974,0 114,919,0 218,309.0
Deferred availability items
382.533,0 35,059,0
87,831,0 32,253,0 36,465,0 33,097.0 14,106,0
52,037,0 19,247.0 9.346,0 23,878.0 18,694,0 20,515,0
Capital paid in
145,309,0 10,651,0
58,510,0 15.725,0 12,734,0 5,004,0 4,462,0
12,785,0 3,922,0 2,862,0 4.100,0 3,884,0 10,670.0
Surplus
138,383.0 9,610,0
45,217,0 13.352,0 14,090,0 5,171,0 5,145,0
20.681,0 4,756.0 3,420,0 3,613,0 3,683,0 9,645.0
Subscription for FDIC stock:
Paid
69,650,0 5,115,0
21,265,0 7,310.0 7,073,0 2,904,0 2,636.0
9,874,0 2,547,0 1,755.0 2.066,0 2,180.0 4.925.0
Called for payment April 15
69,650,0 5,115,0
21.265,0 7,310,0 7,073,0 2,904,0 2,636,0
9,874,0 2,547,0
1,755,0 2,066,0 2.180,0 4.925.0
All other liabilities
36,653,0 1,594,0
14,500,0 2,869,0 2.708,0 1,235,0 • 2.733,0
4.217,0
1,113.0 1,200,0
788,0 1,906,0
1,790,0
Total liabilities
7.138321.0 521.322,0 2,003,459,0 499,914,0 624,705,0 310,089,0 260,491.0 1.443,698.0 308.728,0
197,364,0 290,271,0 197,687,0 480,393,0
Memoranda
Ratio of total res. to dep. k F. It.
note liabilities combines!
67.5
65.1
57.7
63.9
66.1
66.0
71.3
70.7
69.6
66.4
Contingent liability on bills pur70.0
62.9
65.4
chased for torn correspondents
4,635,0
323,0
1,706,0
466,0
430,0
170,0
157,0
564,0
148,0
103,0
125,0
125,0
318,6
*"Other cash" does not Include Federal Reserve notes or bank s own Federal Reserve bank
notes.
FEDERAL RESERVE NOTE STATEMENT.
'Iwo ciphers (00)()milled.
Federal Reserve Agent at-

Total.

Boston. New York.

Phila.

Cleveland. Richmond Atlanta.

Chicago.

Si. Louis. Minneap. Kan.City

Dallas. San Fran.

Federal Reserve notes
:$
•
$
Issued to F.R.Bk. by F.R.Agt. 3,223,491,0 236.370,0
Bold by Fed'I Reserve Bank___ 253,182,0 15,749,0

$
$
$
$
$
682.743,0 251.759,0 303,565,0 153,182.0 143,349,0
72,818,0 16,451.0 14,889,0 6,871,0 20.000,0

In actual circulation
2,970,309,0 220,621,0
Collateral held by Agent as security for notes issued to bks:
Gold certificates on hand and
due from U.S. Treasury
2,663,318,0 214,672,0
Eligible paper
110,000,0 17,398,0
U. S. Government securities._ 496,100,0 4,500,0

3
$
$
$
$
$
802,648,0 142,215,0 100,897,0 115,093.0 45,891,0 245,779,0
38,305,0 5,185,0 4.908,0 6,697,0 4,573.0 48,736.0

609,925,0 235,308,0 288,676,0 146.311,0 123,349,0

766,343,0 137.030,0 95,989,0 108,396,0 41,318,0 197,043,0

553,706,0 185,000,0 236,886,0 118,599,0 108,385,0
25.567,0 12,138.0 9,937,0 3,374,0 3,394,0
125,000,0 55,000,0 60,000,0 32,000,0 33,000,0

705,713,0 128,697,0 83,444,0 110,290,0 37,163,0 180,763,0
9,614,0 3,333,0 2,724,0 2,919,0 9.840,0 9,762,0
92,000,0 12,000,0 15,600,0 5,000,0
62,000,0

704,273,0 252,138,0 306,823,0 153,973,0 144,779,0

807.327,0 144,030,0 101,768,0 118,209,0 47.003,0 252,525.0

Total collateral

3,269,418,0 236,570,0

Two Ciphers (00) Omitted.
Federal Reserve Agent at-

FEDERAL RESERVE BANK NOTE STATEMENT.
Total.

Boston. New York.

Phila.

Cleveland Richmond Atlanta.

Chicago.

St. Louis. Minneap. Kan.City. Dallas. San Fran.

Federal Reserve bank notes:
Issued to F. It. Bk.(outstdg.):
Held by Fed'i Reserve Bank-

$
$
219,747,0 23,374,0
21,997.0 1.418.0

$
$
$
62,184,0 24,776,0 22,959,0
9,509,0 5,428,0
684.0

$
4,379,0

$
5,101.0
646,0

$
27.073,0
1,284.0

It
9,237.0
231,0

$
7.085,0
85,0

In actual circulation
Collat. pledged eget. outst. notes
Discounted Ar purchased bills
U. S. Government securities

$
$
$
0,533.0 10,299.0 13,764,0
143.0
1,378,0
1,193.0

197,750,0 21,956.0

52,655,0 19,348,0 22,275,0

4,379,0

4,458,0

25,789,0

9,006,0

7,000,0

9,390,0

1,029.0
249,774,0 30,000,0

955,0
64,274,0 26.500,0 25,000,0

5,000,0

64,0
6,000,0

10,0
36.000.0 11,000,0 10,000,0 10,000,0 11,000,0 15,000,0

250,803,0 30,000,0

64,274,0 26,500,0 25.955,0

5,000,0

6.064,0

36.000.0 11.010.0 10.000.0 10.000.0 11.000.0 15.000.0

Total collateral

8,923.0 12,571,0

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 from which weekly
behind those for the Reserve banks themselves. Definitions of thereturns are obtained: These figures are always a week
different items in the statement were given in the statement of Dec. 14 1917, published in the "Chronicle" of Dec. 29 1917,
page 2523. The comment of the Reserve Board upon
the figures for the latest week appears in our department of "Current
we also give the figures of New York and Chicago reporting memberEvents and Discussions," immediately preceding which
banks for a week later.
Beginning with the statement of Jan. 9 1929, the loan figures exclude

all real estate mortgages and mortgage loans held by the bank. Previously"Acceptances of other banks and bills of exchange of drafts sold with endorsement" and include
acceptances
of the banks Included mortgages In investments. Loans secured by U. S. Government of other banks and bills sold with endorsement were included with loans, and some
obligations are no longer shown separately, only
given. Furthermore, borrowing at the Federal Reserve Is not any more subdivided
the total of loans on securities being
show the amount secured by
S. obligations
only a lump total being given. The number of reporting banks formerly covered to
101
leading cities, but was reduced to 90 cities and those secured by commercial paper,
moratoria early in March 1933. Publication of the weekly returns for the reduced
after the declaration of bank holidays or
number
of
cities was omitted in the weeks from March 1 to
them IS to be found In the Federal Reserve Bulletin. The figures below are stated In
May 10, but a summary of
round millions.
PRINCIPAL RESOURCES AND LIABILITIES OF WEEKLY REPORTING
MEMBER BANKS IN EACH FEDERAL
RESERVE DISTRICT AS AT CLOSE OF
BUSINESS FEB. 14 1934 (In Millions
of Dollars).
Federal Reserve DistrictLoans and Investments-total
Loans-total
On securities
All other
Investments-total

gU.S. Government securities
Other securities
Reserve with F. It. Bank
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
,
Borrowings from F. It. Bank




Total.

Boston. New York

$
17,092

$
1,194

S
7,844

8,286

665

3,930

3,531
4,755

251
414

1,893
2,032

8,806

529

3,914

5,867
2,939

365
164

2,625
1,280

2,010
235
11,332
4,344
991
1.413
3,201
10

128
35
783
337
84
113
168

857
52
5.781
1,108
534
126
1,382
7

Phila.

Cleveland. Rkhmond Atlanta. Chicago.
St. Louts. Minneap. Kan.Ctry. Dallas. San Fran.
$
$
$
3
$
$
$
$
1,126
$
349
343
1,686
504
325
540
420
1.730
505
432
169
186
738 il
225
166
199
193
878
246
213
59
60
335
90
45
61
58
259
215
219
110
128
403
135
121
138
135
663
526
694
180
157
948
279
159
341
227
852
284
495
131
112
624
180
103
232
242
176
199
540
49
45
324
99
56
109
51
312
91
123
34
27
391
72
31
75
12
68
113
17
11
6
53
8
5
12
9
635
15
567
205
157
1,381
332
188
404
301
287
612
434
132
130
446
161
128
163
40
125
879
58
10
28
72
26 .
3
21
102
40
75
89
67
64
230
84
75
175
119
186
161
157
77
71
405
137
85
231
143
2
162
1
___

S
1,031

1358

Financial Chronicle

Tip
Timor('

finanitat

Feb. 24 1934

Quotations for United States Treasury Certificates
Indebtedness, &c.—Friday, Feb. 23.

(gr nitttrir

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Maturity.

Int.
Rale,

June 15 1934.__
Mar 15 1934...
Sept. 151934...
Aug. 1 1935._
Aug. 1 1934...
Dec. 15 1934.-Mar. 15 1935_
Dec. 15 1935._
Feb. 1 1938.--

ti%
34%
14%
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24%
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24%
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234%

Bid.
99"1,

1003,,
100on
9913,,
10033,,
100"ss
100n,,
100",,
9933,,

of

Asked.

Maturity.

/nt.
Rate.

Bid.

Asked.

100'31

Dec. 15 1938...
Apr. 15 1936...
June 15 1938...
May 2 1934...
June 15 1935._
Feb. 15 1937_
Apr. 15 1937_
Aug. 1 1936_
Sept 15 1937...

24%,
21
4%
24%
3%
3%
3%
3%
34%
33-(%

10033,1
10031,,
9933,,
10013,,
10113,,
1000,,
10033.,
1010,,
101,,,,

1000,1
10023,,
100
10018,,
101"s,
100"ss
10001,
10113,1
10111,1

1001,1
100",,
9916.1
10023,,
10016ss
10033,,
10013,,
9933,,

U. S. Treasury Bills—Friday, Feb. 23.
Rates quoted are for discount at purchase.
Feb. 28 1934
Mar, 7 1934
Mar. 21 1934
Mar. 28 1934
Apr. 4 1934
Apr. 11 1934
Anr. ig 1934

Bid.

Asked.

0.40%
0.40%
0.45%
0.50%
0.50%
0.55%
o_55w.

0.20%
0.20%
0.25%
0.30%
0.30%
0.35%
0.351a

Apr. 25 1934
May 2 1934
May 9 1934
May 16 1934
May 23 1934
Aug. 8 1934
Aug. 15 1934

Bid.

Asked.

0.55%
0.60%
0.60%
0.60%
0.60%
0.1)0%
n 911,,,t

0.35%
0.40%
0.40%
0.40%
0.40%
0.70%
A 70071

United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.—

William Street. Corner Spruce. New York.
Published every Saturday morning by WILLIAM B. DANA COMPANY.
President and Editor, Jacob Seibert:
Business Manager, William D. Riggs,
Treaa., William Dana Seibert: See.. Herbert D.Seibert. Addresses of all, Office of Co.

Wall Street, Friday Night, Feb. 23 1934.
Railroad and Miscellaneous Stocks.—The Review of the
Stock Market is given this week on page 1346.
The following are sales made at the Stock Exchange this
week of shares not represented in our detailed list on the
pages which follow.
STOCKS.
Week Ended Feb. 23.

Sales
for
Week.

Railroads—
Par. Shares.
Beech Creek RR Co_50
30
Canada Southern___100
20
Chic St P & Om__ _100
200
100
30
S Preferred
Hudson & Manh p1_100
500
Int Rys of C Am pf.100
10
Market St Ry
100
100
N 0T & Mexico
100,
340
Norfolk & West pref100
90
Pacific Coast 2d pref_.*,
1001
FMB,Rap Trans pref_50
10
Texas & Pacific__ 100 4.100
Wabash RR pref B.100
100

Range for Week.
Lowest.

I

$ per share.
34
Feb 21
50
Feb 21
5
Feb 19
94 Feb 23
214 Feb 23
1534 Feb 19
134 Feb 21
Feb 17
15
88
Feb 20
334 Feb 23
6
Feb 23
31
Feb 19
44 Feb 17

Highest.

Range Since Jan. 1.
Lowest.

Indus. & Miscall.-1
Abrah'm & Straus p1100
Feb 17 105
150 101
Feb 23 89
Am Coal Co of N J—
(AlleghenyCounty)25
90 30
Feb 17 35% Feb 21 25
Am Mach At Mets ctfs_'
100 65$ Feb 23 64 Feb 23 4%
Art Metal Construct_11)
60 74 Feb 20 9
Feb 21 5
Austin Nichols prior A*
430 4834 Feb 17 564 Feb 23 394
Beneficial Ind Loan_' 1,900 1234 Feb 21 134 Feb 17 1234
Bloomingdale 7% p1100
10 94
Feb 19 88
Feb 19 94
Blumenthal & Co p1100
Feb 23 564 Feb 19 484
250 52
500 194 Feb 17 204 Feb 21 15
Briggs & Stratton_._'
Burns Bros class A_•
700 34 Feb 20 6
Feb 21 1%
Class A ctfs
• 1.300 24 Feb 19 455 Feb 23 1
Class B
200 23.h Feb 21 34 Feb 21
234
•
Class It ctfs
800 134 Feb 21 24 Feb 23
Feb 19 154 Feb 20 4
Preferred
100 1,070 11
City investing
Feb 17 52
10 52
Feb 17 52
100
City Stores class A___• 1,000 434 Feb 23 54 Feb 23 3%
Class A ctfs
1,000 44 Feb 23 54 Feb 21 3
54 Feb 17 1
Certificates
Feb 19
• 4,300
B:
Collins & Aikman pf100
80 914 Feb 23 92
Feb 19 79
Col Fuel & Ir pref_ _100
Feb 21 32
220 29
Feb 23 104
Columbia G&E pf B 100
80 63
Feb 23 41
Feb 19 66
Comm Cred pref (7)_25
600 264 Feb 19 27
Feb 17 234
Consol Cigar pref(7)100
Feb 19 534 Feb 23
30 51
Devoe & Raynolds1st preferred
Feb 17 100
30 99
Feb 19 99
100
Feb 21 25
Durham llos'y 30 p1100
Feb 21 21
200 25
Fairbanks Co pf ctfs 100
Feb 19 3
Feb 1
50 4
4
Fifth Ave Bus See __•
30 74 Feb 23 .734 Feb 23 7
Fllene's(Wm)SonsC
230 93
Feb 17 96
Feb 20 87
64% pref
10
80 74
Foster Wheeler pref_ __•
Feb 21 60
Feb 17 78
140 105
Gen Baking Co pref......•
Feb 1910834 Feb 17 102
Gen Refractories ctfs_ _• 7,500 174 Feb 17 194 Feb 21 12
Feb23100
20 100
HarbWalkRefract pf100
Feb23 87
Hazel Atlas Co
Feb 23 87%
25 1,400 90 Feb 23 94
Kresge Dept Stores_ _1
300 64 Feb 21 7
Feb 20 24
130 45
Laclede Gas
Feb 19 42
Feb 20 52
100
100 50
Preferred
Feb 17 424
Feb 20 55
100
Life Savers
800 1834 Feb 17 1934 Feb 21 174
5
MacAnd & Forbes pf100
20 994 Feb 17 994 Feb 17 95
Marancha Corp
Feb 17 44
5 2,000 434 Feb 19 .5
Martln-Parry Corp_ * 5,800 1034 Feb 19 1134 Feb 21 634
Math Alkali Wks pf 100
Feb 21 121
20 121
Feb 21 110
Natl Aviation
Feb 23 7%
3,900 9 Feb 17 10
Norwalk T & K pref_50
Feb 19 36
Feb 19 37
50 36
Omnibus Corp pref_100
Feb 21 89
Feb 17 95
500 94
Pac T & T pref
Feb 2110834 Feb 20 103
80108
100
Pacific Western
600 734 Feb2174 Feb 17 64
Panhandl P&R pref_100
20 1434 Feb 23 1434 Feb 23 12
Penn Coal & Coke. _50 4,000 4
Feb 17 44 Feb 21 24
Phoenix Hosiery pfd-100
20 534 Feb 23 5334 Feb 23 50
Revere Cop & Br pfd100
Feb 23 61
120 60
Feb 23 46
Roan Antelope Cop M.
200 2951 Feb 19 2934 Feb 19 26%
Sehenley Distillers___ - 16,500 3034 Feb 19 325,$ Feb 17 264
Sterling Products
_10 3,900 554 Feb 23 5634 Feb 17 47%
Underwd-Ell-F pref 100
100 113
Feb 17 113
Feb 17 102
United Amer Bosch___*
Feb 23 134 Feb 23 10
300 13
United Drug
5 6,200 134 Feb 23 1434 Feb 19 94
S Distrib pref.__ _100
Feb 20 74
Feb 20 13
100 13
Univ Leaf Tob pref_100
1011534 Feb 1911534 Feb 19 1124
150 14
Un Fine & Rad pref_100
Feb 17 4%
Feb 20 17
Utah Copper
1
20 624 Feb 17 6234 Feb 17 614,
Vick Chemical
5 2,450 3034 Feb 17 304 Feb 19 24%
Virginia Jr CI& C._100
700 74 Feb 17 9
Feb 23 4%
I 5% preferred. _ _ _100
30 24
Feb 23 24
Feb 20 27
Walgreen Co
10 2,200 234 Feb 23 25
Feb 19 234
Preferred
100
40 974 Feb 1910234 Feb 23 844
Webs Eisenlohr pref 100
10 80
Feb 20 80
Feb 20 65
• No par v.,lue.




Highest.

$ per share. $ per Share $ per share.
35
Feb 21 31
Jan 35
Feb
Feb 21 50
50
Feb 50
Feb
6% Feb 19 5
Feb 634 Feb
10
Feb 19 5
Jan 113-4 Feb
224 Feb 19 18
Jan 2634 Jan
15% Feb 1
734 Jan 16
Feb
14 Feb 21
4
3
Jan 134 Jan
25
Feb 21 114 Jan 25
Feb
894 Feb 23 82
Jan 894 Feb
4
Feb 21 2
Jan 44 Feb
Feb 23 5
6
Feb 64 Feb
374 Feb 17 1834 Jan 4334 Feb
44 Feb 17 234 Jan 434 Jan
Jan 105

Feb

Feb
Jan
Jan
Jan
Jan
Jan
Feb
Jan
Jan
Jan
Feb
Jan
Jan
Feb
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan

Feb
Feb
Feb
Feb
Jan
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb
Feb

354
8
9
564
144
94
564
20%
6
41.4
334
24
15%
52
5%
54
I%
92
32
66
27
534

Feb 100
Jan
Feb 284 Feb
Feb 75$ Jan
Feb 11
Jan
Jan 974
Jan 78
Jan 108%
Jan 194
Jan 100
Jan 96%
Jan 7g
Jan 634
Jan 60
Jan 20
Jan 994
Jan 53-4
Jan 11%
Jan 121
Feb 13%
Feb 37
Feb 95
Jan 108%
Ja%
8
Jan(15%
Jan 45s
Jan 61
Jan 65
Jan 304
Jan 34%
Jan 58
Jan 113
Jan 17
Jan 15%
Jan 13
Jan 1154
Jan
Jan 65
Jan 314
Jan 9
Feb 27
Feb 254
Jan 1024
Jan 80

Feb
Feb
Feb
Feb
Jan
Jan
Feb
Feb
Feb
Jan
Feb
Feb
Feb
Feb
Jan
Jan
Jan
Feb
Feb
Jan
Jan
Jan
Feb
Feb
Jan
Jan
Feb
Feb
Feb
Feb
Feb
Feb
Jan
Feb
Feb
Feb
Feb
Feb
Feb

Daily Record of El. S. Bond PricesiFeb.17. Feb. 19. Feb.20. Feb.21. Fe5.22. Feb.23.
I
First Liberty LoanHigh 1023,, 1023,, 10231, 1021n
102,a
102
34% bonds of 1932-47_41-ow. 102
102hs
1023* 102'n 1021n
Close 102
(First 34s)
102,
"
11
8
Total sales in $1,000 units...
4
8
15
Converted 4% bonds ofrigh
LOW.
1932-47 (First 48)
sv
Total sales in $1,000 units._ _
Converted 44% bondsrigh
of 1932-37 (First 44s) Low. 10233,,
Close 10233,1
3
Total sales in $1,000 units...
Second converted 4q% nigh
- --_—
bonds of 1932-47 (First Low
Close
Second 44s)
Total sales in $1,000 units.......
{High 1
Fourth Liberty Loan
44% bonds of 1933-38_ Low_ 10223s,
Close 10233,2
(Fourth 44s)
8
Total sales In $1,000 units...
{High 1000,,
Fourth Liberty loan
Low_ 100":,
44% bonds (called)
Close 100,3,,
4
_
Total sales in $1,000 units _ .
{High 1043332
Treasury
Low_ 10533,1
4%s 1947-52
Close 10501,
Total sales in $1,000 units___
30
{High 10013,,
Low_ 100",,
410-34s, 1943-45
Close 10033,2
Total sales in $1,000 units__
13
illigh 105,3,,
Low_ 1050,,
4e, 1944-54
Close 10.5",,
Total sales in $1,000 units__
135
{High 10333,,
Low. 10331,,
34s, 1946-56
Close 1033,,,
Total sales in $1,000 units_ _ _
200
{High 1013,,
Low_ 101
34s, 1943-47
Close 101,3,
15
Total sates in $1,000 units _ __
High 9733,,
972.32
38. 1951-55
{lose
IClose 97,4,1
5
Total sales in $1,000 Units...
101 hs
{HighLow_ 101 6n
35-Ss, 1940-43
Close 1016n
2
Total sales in $1,000 units _ __
{High 1013H
Low 101
354s. 1941-43
Close 101
Total sales In $1,000 units_ _.
167
991n
{HighLow_
34's 1946-49
991n
Close 991n
Total sales in $1,000 units.__
7
rIgh 1001 h,
34s, 1941
Low_ 1001hs
Close 100.hs
Total sales in $1,000 unit,...
3

10-2-16.s;
10224s, 1021hs 10216n
10233,, 1021hs 102.32
16
117
8

1072.13,
,
10216n
10216n
29
100"ss
100"ss
100"n
4
108",,
1013"ss
108"ss
5
100"ss
100"ss
100"ss
20
103"ss
1056n
105"ss
308
10311ss
10311,1
103"ss
24
101
101
101
25
971'ss
9716ss
97"ss
14
101'n
101'n
101'n
25
101 1n
100"ss
101 1ss
12
991ss
99
99
49
100"as
100"n
100"31
16

10-2-1;s;
102"as
102"ss
54
100"ss
100"ss
100"ss
11
108"st
108"ss
108"n
4
100"ss
100"ss
100";
81
105",
105",
105111
42
10316a
103"ss
10311n
35
1011n
101 1ss
101'n
14
9711n
972031

9713,,
77
1013,,
1013,,
1013,,
16
1013,1
101
101
5
99,8
99
99
83
100,
rs,
93

10233ss
10233,,
27

10-2173;
1021an
1021hs
102"ss
1021hs
102"ss
58
65
100flhs
1000s,
10011n
10031:,
100"n
100,111
7
11
109
109131
1092,1
1091n
109
109112
25 HOLI1001hs DAY 100"ss
1001hs
100"ss
100,h,
100,3,,
73
46
1051h,
105"ss
105,h1
105"as
105”31
105"ss
8
7
101
103",,
101
104
2
10
1011H
101 1n
100",,
100"ss
101In
101
2
31
97,41,
9726:1
972.al
9716n
972,s3
9711n
68
42
101.31
101'n
101.1,
1016st
101,
”
101'ss
20
5
1013H
1013,,
1011H
1011H
26
14
99
994,
081.33
98141
99
980H
64
50
10013s,
100",,
100,h,
1001h,
100,h,
10011H
44
18

Note.—The

above table includes only sales of coupon
bonds. Transactions in registered bonds were:
2 First 4548
10131,, to 10233ss
27 Fourth 44s (uncalled)
102"ss to 102"ss
7 Fourth 434s (called)
100,3,, to 10013s,

Foreign Exchange.—
To-day's (Friday's) actual rates for sterling exchange woro 5.0734 @5.0734
for checks and 5.074@5.08 for cables. Commercial on banks Sight.
5.063.4. 60 days, 5.063.4, 90 days, 5.05 X, and documents for payment, 60
days 5.06 X. Cotton for payment 5.07%
To-day's (Friday's) actual rates for Paris bankers' francs were 6.644@
6.553,
4 for short. Amsterdam bankers' guilders were 66.95067.07.
Exchange for Paris on London. 77.37. week's range, 78.78 francs high
and 77.37 francs low.
Sterling Actual—
Checks,
Cables.
High for the week
5.143-s
5.1434
Low for the week
5.043o
5.04
Paris Bankers' Francs—
High for the week
6.5634
6.5534
Low for the week
6.50
6.51
German Bankers' Marks—
MO for the week
:
39.49
39.55
Low for the week
39.17
39.19
Amsterdam Bankers' Guilders—
High for the week
66.88
67.05
Low for the week
66.55
66.50

The Curb Exchange.—The Review of the Curb Exchange is
given this week on page 1350.
A complete record of Curb Exchange transactions for the
week will be found on page 1377.

,
1359

Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
rir FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST. SEE PAGE PRECEDING.
NOTICE.-Sales for deferred delivery (s. 10, s. 15 days) are disregarded In the week's range, unless they are the only sales of the week, and whether included or no
are shown In a footnote In the week In which they occur. No account is taken of such sales in computing the range for the year.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Feb. 17.

Monday
Feb. 19.

Tuesday
Feb. 20.

$ per share $ per share $ per share
6934 7078 70
7114 7018 7158
85
8512 8358 8434 83
83
5212 5212 51
5258 5112 5112
334 3334 3314 34
33
3334
3412 354 3514 36
3513 36
4334 44
44
4414 *44
4414
•10114 107 .10114 107 *10114 107
*17
18
16
1614 1614 16
.612 778
712 712
712 712
*4514 4714 .454 4712 46
4712
3318 3378 3218 3318 3218 3234
87
87
85
8612 86
8612

Thursday
Feb.22.

Wednesday
Feb.21.

Friday
Feb. 23.

Sales
for
the
Week.

PER SHARE
Range Since Jan. 1.
On basis of 100-share lots.

STOCKS
NEW YORK STOCK
EXCHANGE.

Lowest.

Highest.

PER SHARE
Range for Previous
Year 1933
Lowest.

Highest.

$ per share Shares.
Railroads
2 per share $ per share $ per share
Par $ per share
3458 Feb 804 July
67
6978 12,300 Ateh Topeka de Santa Fe__100 54 Jan 6 7334 Feb 5
50 Apr 7934 June
1,500
100 7018 Jan 5 8512 Feb 17
Preferred
81
81
1612 Feb 59 July
49
52
2,600 Atlantic Coast Line RR
100 39 Jan 6 5414 Feb 16
32
814 Feb 3772 July
3378 31,700 Baltimore & Ohio
100 2214 Jan 4 3412 Feb 5
3514 3634 4,100
912 Apr
100 2412 Jan 9 374 Feb 6
Preferred
3914 July
20
44
Jan 4134 Dec
4414 1,400 Bangor dc Aroostook
50 3912 Jan 9 4618 Feb 1
*105 107
100 9518 Jan 5 109 Feb 6
Preferred
10
6858 Jan 110 Aug
*16
1912 Feb 5
100 11 Jan 11
17
200 Boston & Maine
8
Apr 30 July
94 July
*612 7
312 Mar
838 Feb 7
400 Brooklyn & Queens Tr_No par
478 Jan 8
.45
48
No par 41 Jan 18 44 Feb 7
Preferred
3534 Apr 6018 July
300
No par 314 Feb 2.3 364 Feb 7
2134 Feb 4114 July
3138 3234 9,300 Bklyn Manh Transit
86
84 Mar 8312 June
800
26 preferred series A_No par 13212 Jan 4 87 Jan 19
86
13 Jan
414 July
Brunswick Ter & By SeeNo pa, --------------712 Apr 204 July
•
1618 1112 -15:200 Canadian Pacific
1612
1638 1658 1614 11312
25 1234 Jan 2 1712 Feb 6
7912 July
*42
90 .82
5014 Apr
00
Caro Clinch & Ohio stpd__100 70 Jan 6 84 Feb 7
*82
00
*82
90
*82
90
Apr 122 July
400 Central RR of New Jersey_100 70 Jan 15 92 Feb 3
.80
83
38
80
80
*76
80
80
80
82
82
4514 4534 4514 4578 4512 4578 4514 46
2458 Feb 4914 Aug
25 3912 Jan 5 4658 Feb 5
4378 4578 20.400 Chesapeake & Ohio
8 July
7 Feb 17
7
12 Apr
100
7
258 Jan 15
514 54 1,000 Chic & East III By Co
653 634
514 514 "512 612
634 7,2
812 July
8 Feb 16
178 Jan 9
6
634 2,900
100
12 Apr
634 712
6% preferred
7
738
738
7
51,1
738 July
.518 514
188 Apr
512 Feb 1
538
100
278 Jan 3
5
518 3.300 Chicago Great Western
5
514
538 54
212 Apr
1478 July
1014 104 10,
8 1178
100
Preferred
614 Jan 4 1178 Feb 19
1058 114 8.400
1118 115s 1112 1134
1
1184 July
812 Feb 5
714 753
414 Jan 2
Apr
714 734
7
758 4.400 Chic Milw St P & Paa__No par
738
71_
714 758
1178 1214 1158 124 1158 12
112 Feb
1814 July
100
678 Jan 8 1314 Feb 5
Preferred
1114 1214 17.500
1158 1214
16 July
11
/
4 Apr
1438 147a
13,
8 14,
8 14
658 Jan 3 15 Feb 5
1412
1438 14
1338 1412 28,900 Chicago & North Western_100
Apr
3434 July
Feb
27
16
28
2
Jan
27
3
28
2712 2658 28
100 1314
Preferred
3,900
2414 26
26
2712
Apr
2
1018 July
614 Feb 7
558 534
234 Jan 3
512 534
512 573
514 578 5,100 Chicago Rock Isl & PacIfic_100
54 578
9
94 Feb 6
914
458 Jan 3
312 Apr 1912 July
100
915 07
7% preferred
1,300
834 9
9/
1
4 938
834 834
15 July
8 Feb 6
278 Apr
712 712
100
*712 734
378 Jan 2
900
6% preferred
778 778
7,
1 74
712 778
36
36
1514 Feb 51 July
3612 37
100 27 Jan 4 4038 Feb 1
37
40
39
290 Colorado & Southern
*3612 39
39
.30
1212 Apr 4284 July
3212 *30
32
32
100 20 Jan 4 3314 Feb 9
4% 1st preferred
33
32
90
•25
*25
32
*22
29
10 Mar 30 July
*25
29
29
100 20 Jan 12 30 Feb 3
20
4% 2d preferred
29 •20
2978
.20
30
1058 June
6
6
6
618
6
6
64
618
634 Feb 5
218 Jan 5
114 Feb
100
512 534 2.600 Consol RR of Cuba pref
213 Jan
18 June
•814 934
314 Jan 15 1012 Jan 23
100
*81 2 10
.
814 017 "814 912
60 Cuba RR 6% pre
81 4
812
70
7014 6812 70
3758 Feb9334 July
6912 7014 6812 6978
100 53 Jan 5 7312 Feb 1
4.300 Delaware & Hudson
6712 70
3114 3218 3114 3238 3112 3214 3034 321s
1714 Feb46 July
2912 3138 26,500 Delaware Lack & Western_50 2212 Jan 6 3334 Feb 5
1012 1053 1012 1078
2 Feb1984 July
1012 1012 1034 1134
534 San 19 1178 Feb 6
Stock
1hz 2,800 Deny &Rio Or West pref 100
10
2334 2478 24
247
8
Feb
5
334 Apr 2534 July
8
2478 24
Jan
2458 2418 24,
137
8
100
8
2412
10,200
Erie
2212
27
412 Apr
2912 July
2734 2634 2634 .2634 2714 2714 2778 Exchange
100 16 Jan 3 2778 Feb 21
First preferred
2638 2778 3,100
.2078 22
22
212 Apr 2314 July
22
.20'8 22 .2018 22
100 12 Jan 3 22 Feb 5
Second preferred
*20
22
100
3334 July
4,
8 Apr
3018 3078 2934 31
8 Jan 4 3212 Feb 5
Closed
30
100 18,
30.4 2958 3053
29
3034 15,500 Great Northern pref
134 Mar
1112 July
1234 1334 1334 1518
1434 1814 1514 1558
578 Jan 10 1614 Feb 20
1518 1518 6,200 Gulf Mobile & Northern 100
2312 July
Mar
21
212
4
Feb
30
31
Jan
32
11
34
353
33
35
35
3534 Washing15
100
Preferred
3134 3434 3,600
234 June
38 Dec
.
78
112
78 Feb 13
.
1 12 Jan 23
78
112 .
78
11's
Havana Electric By Co No par
*78
114
•1
1,4
19 June
.10
1012 1012 1012 *1014 1034 1014 1018
712 Jan 2 1218 Feb 7
612 July
ton's
100
918 1014 2,100 Hudson & Manhattan
812 Apr 5034 July
3512 364 3518 3638 35
3434 3634 15.800 Illinois Central
100 2812 Jan 6 3478 Feb 5
3614 3538 3638
.42
45
16 Mar 604 July
*42
45 .42
45
44
45
Birthday •45
100 35 Jan 13 4912 Jan 30
200
4612
6% pref series A
60 July
31 Mar
.55
6158 •55
6153 .55
6153 •55
6158
6158
100 4834 Jan 5 6012 Feb 8
•55
Leased lines
34 July
6
412 Apr
Feb
*20
23 .21
8
23
2414
*21
23
Jan
*21
23
.21
23
RR Sec Ws series A1000 1712
418 Feb
1334 Dec
114 1114 1034 1114 11
11
914 Feb 23 1334 Jan 2
1034 11
014 104 3.000 Interbero Rapid Tran v t 0_100
1612 1712 .17
612 Feb 2478 July
18
1753 18
17
18
100 11 Jan 8 1914 Jan 16
2,100 Ka11.221. City SoUthern
1814 1834
.25
27
26
26
.25
.26
2758 *2512 2678
,
4 Jan 5 26 Feb 10 212 Mar 3414 July
2612
100 15
Pref. rred
200
2014 2038 2014 2034 2012 2034 1978 204
858 Feb 2734 July
1914 2078 9,300 Lehigh Valley
50 13 Jan 4 2114 Feb 5
2114 Jan 6712 July
5914 6018 5512 56
57
5512 56'2 57
5612 5712 2.100 Loulsv 1.e dr Nashville____ 100 484 Jan 4 6118 Feb 5
Oct
12 Mar 28
.25
28
.25
•25
28 .25
28
*25
28
28
Manha Ian By 7% guar. _100 20 Jan 3 31 Feb 3
Oct
Jan 20
1717 1634 17
6
1612 1634 3,800 Manh Rs, Co mod 5% guar.100 15 Jan 3 1958 Jan 12
*17
174 17
17'2 17
8 June
178 Mar
612 Feb 5
*514
778
612 617 *514 612
600 Market St By prior pref.. 100
44 Jan 16
612 612
•612 778
214 July
4 Jan
1
1
118 Jan 19
1
1
.1
118
118
118
11
12 Jan 11
*I
300 Minneapolis & St Louis___ 100
578 July
314 318
*318 314
12 Mar
358 Feb 6
Ps Jan 2
314
31 2
600 Minn St Paul de SS Marle_100
314 314 "234 314
812 July
434 Feb 14
*418 434 *4
.412 512
434 *4
34 Apr
434
134 Jan 8
200
100
77 preferred
434 434
212 Dec1412 July
.658 678
7 Feb 5
638 638
614 6% *614
130
100
47: leased line ctfs
7
312 Jan 2
612 617
1718 July
1314 1318 1318 1353 1318 1338 13
1258 1314 7.300 Mo-Kan-Texas RR____No par
534 Jan
8 Jan 2 144 Feb 5
1314
3714 July
3314 3317 3212 3314 .3238 3278 3112 3232
1112 Jan
30
31
2.800
100 1734 Jan 5 3438 Feb 6
Preferred series A
1014 July
514 51
118 Apr
5
538 534
6 Feb 5
514 3.300 Missouri Pacific
517 512
100
3 Jan 2
553 512
812 8,
1514 July
8
818 878
84 858 7,500
158 Apr
934 Feb 7
8
812
812 878
Cony preferred
412 Jan 3
100
40
40 .37
.38
Jan 57 July
13
43
40
43 .37
43 .38
20 Nashville Chatt & St Louis 100 32 Jan 2 46 Jan 24
158
158
158
178
312 June
2
2
2
18 Mar
2
214
2
214 Feb 23
990 Nat Rya of Met 1st 4% pf_10
118 Jan 22
138 June
4
4
18 Jan
34
34
4 5.500
34
78 Jan 24
4
2d preferred
78
78
100
78
4 Jan 5
421
/
4 43
4134 43
4058 42
Feb 5812 July
4112 4212 4058 4212
14
94,500 New York Central
100 3112 Jan 6 4514 Feb 5
24
2478 25
2414 2534 2,400 N Y Chic & St Louis co...._ 100 15 Jan 3 2534 Feb 23
25
2478 25
24 Jan 2752 Aug
25
2512
3234 3312 33
34
3112 3458 5,200
3312 3414 3414 3434
258 Apr 3414 July
100 1712 Jan 3 3134 Feb 21
Preferred series A
12512 12512 126 126 .125 12917 125 126'2
125 12612
120 N Y & Harlem
50 108 Jan 2 139 Feb 1 100 Mar 15834 June
2118 2134 21
2218 21
2112
2012 2112 22,000 NY N It & Hartford
2158 21
1118 Feb 3478 July
100 1414 Jan 3 2418 Feb 5
3614 37
3612 37
35
Apr 56 July
3612 36t 30
36
3,900
18
Cony preferred
3614
100 2312 Jan 6 3758 Feb 5
11
1112 11
111 1
11
1058 1058
113
1012 11
2,500 N Y Ontario & Western
712 Dec 15 July
100
8 Jan 5 1158 Feb 5
158
158
112
•112 2
11
.134 2
134
18 Mar
134
312 July
300 NY Railways pref
134 Jan 16
No par
114 Jan 2:3
12 Apr
278 278 *212 3
478 July
.234 278
.258 3
100 Norfolk Southern
3 Jan 30
100
114 Jan 3
*24 3
1804 18058 .180 183 *180 182
.178 183
175 181
800 Norfolk & Western
100 161 Jan 5 181 Feb 16 11112 Mar 177 July
32
3414 15,400 Northern Pacific
3312 344 332 3453 3312 3438 3318 34
100 2118 Jan 6 3518 Feo 5
938 Apr 344 July
.312 4
.314 4
.34 418 *312 4
150 Pacific Coast
Jan
7 July
1
334 4
458 Feb 1
2 Jan 4
10
3778 364 3717 37
3712 37
3634 374 33,600 Pennsylvania
3758
37
1334 Jan 4214 July
50 2914 Jan 4 3778 Feb 19
500 Peoria & Eastern
8
*714 8
8
8
714 712
.714 8
78 Feb9 July
8
8 Feb 17
100
4 Jan 16
30
30
*27
3034
.28
31
*2614 30
200 Pere Marquette
.3014 33
378 Mar 37 July
100 1612 Jan 10 33 Feb 6
•35
29
*2712 2914 29
37
40
200
*2712 32 .35
Jan 4412 July
Prior preferred
6
100 18 Jan 13 38 Feb 19
3912 36
•2534 29
38
*2534 32
*36
•36
100
Preferred
40
412 Feb3812 July
100 1612 Jan 10 30 Feb 5
27
26
2617 2612 27
27
600 Pittsburgh & West Virginia 100 15 Jan 3 27 Feb 21
*25
2512 2512 26
612 Apr 3534 July
.5212 55
1,400 Reading
5534 5534 554 5512 *53
2312 Apr 6212 July
50 43 Jan 2 5638 Feb 5
55'2 5512 5512
.3412 38
*3418 38
*3412 38
*3412 38
•35,
1st preferred
8 38
25 Apr 38 July
50 3378 Feb 7 35 Jan 22
3512
36
"33
*32
*33
*3314 36
2d preferred
351 .33
2312 Mar 37 July
35"2
50 2918 Jan 11 3412 Feb 16
•1258 14
1312 1312 .11
100 Rutland RR 7% prof
14
*1212 14
.1314 14
Jan
1812 July
100
8 Jan 4 15 Feb 7
8
4
414
4
4
1.400 St Louis-San Francisco
41. 412
44 414
418
938 July
100
4's
218 Jan 2
4,
8 Feb 6
78 Jan
434
438 458 1,900
438
45..
1st preferred
8 434
434 478
434 434
914 July
100
214 Jan 4
1
Apr
5 Feb 6
•13
18
*13
18
.1412 1738 •13
St Louis Southwestern____100 1212 Jan 19 1678 Feb 5
18
18
•13
54 Mar 22 July
.20
*20
28
28 .20
28 .20
28
28
.18
Preferred
100 2214 Jan 22 2312 Jan 23
12 June 2638 July
134 3,300 Seaboard Air Line
124
158
158
134
158
138
14
No par
1 Jan 2
158
134
3 July
2 Feb 6
14 Jan
3
3
318
3
3,300
.278 3
3
.234 3
3
Preferred
88 Mar
478 July
318 Feb 21
100
134 Jan 11
2934 313 46,800 Southern Pacific Co
3034 315,8 2978 3138 1;014 3112 304 3134
100 1812 Jan 5 3334 Feb 5
1118 Feb 3834 July
45,3 3512 3424 3558
33
3558 27.600 Southern Railway
354 3412 36
35
100 2334 Jan 6 3612 Feb 5
44 Mar 36 July
3678 4014 8,300
4014 39 3912 39 4()
394 3934 39
100 2734 Jan 6 4078 Feb .5
Preferred
578 Jan 49 July
*4378 46
200
4134 4134 4212 4212 .4212 46
Mobile & Ohio stk tr ctfs 100 39 Jan 19 4612 Feb 6
*4378 46
Jan 4014 July
8
612 7
1,300 Third Avenue
100
612 Feb 23
84 Jan 12
*634 754
411 Feb
678 7
12,8 June
*678 712
7
7
3
3
300 Twin City Rapid Trans No par
153 Jan 10
334
312 *3
438 Feb 6
312 31 2 "3
334 *3
434 June
34 Dec
912 912
30
Preferred
100
94 •9
6 Jan 12 12 Feb 6
94 94 *8
912
*Ws 1012
412 Dec 15 June
128 133
5.800 Union Pacific
132 13234 13112 13234 13119 13212 131 132,2
100 11012 Jan 4 133 Feb 23
6114 Apr 132 July
82
500
82
Preferred
8312 831 2 8014 8014 8212 8212 8212 8212
100 7134 Jan 18 8312 Feb 17
Apr 7512 July
56
.414 458
600 Wabash
458 434
434 434
414 414
100
214 Jan 5
112 Jan
412 4,2
478 Jan 30
712 July
534 3,300
6
6
100
612 612
Preferred A
614
318 Jan 2
614 6,
614 614
8
684 Feb 5
118 Apr
94 July
1512 1634 48,900 Western Maryland
1518 1658 1612 174 1614 17
1518 1531
100
834 Jan 2 1714 Feb 20
4 Feb
16 July
21
221j 7,500
100 12 Jan 9 23 Feb 20
20 preferred
2134 2212
197s 1978 1938 2112 2114 23
558 Jan
1912 July
6
74 7,600 Western Pacific
100
234 Jan 2
538 614
1
558 534
718 Feb 23
578 578
614 7
Apr
912 July
100
458 Jan 5 1312 Feb 23
1134 1312 22,200
978 1158 114 13,8
Preferred
94 10,4 1018 1012
178 Mar
16 July
$ per share $ per share
69
7034
82
82
5138 .52
3318 3353
3512 3614
4414 4434
107 107
.1534 17
*7
7'2
*45
4712
32/
1
4 3278
87
"
.86

42
42
*41
44
*4218 45
*424 47
1078 1114 10's 107s
10711 111 1
1038 11
__ *7412 -___
.7312
.7312
•73
• Bid and asked Drifts, no sales on this day.




3 Optional sale

Industrial & Miscellaneous
200 Abraham & Straus
4218 4218
No par
1014 1078 12,300 Adams Express
No par
100
100
Preferred
7412 7412
c Cash sale. • Sold 15 (lave

2 Ex-divIdend.

35 Jan 17
64 Jan 6
7014 Jan 25

u Ex-r ghts•

4218 Feb 15
1178 Feb 5
7412 Feu 23

1318 Feb
3 Feb
39
Apr

4012 July
1314 July
71 June

1360

tar FOR

New York Stock Record-Continued-Page 2

Feb. 24 1934

SALES DURING THE WEEK OF STOCKS
NOT RECORDED IN THIS LIST. SEE SECOND PAGE
PRECEDING.

HIGH AND LOW SALE PRICES-PER SHARE, NOT PER
CENT.
Sales
STOCKS
for
NEW YORK STOCK
Monday
Tuesday I Wednesday Thursday
Friday
the
EXCHANG
E.
Feb. 19.
Feb. 20.
Feb. 21.
Feb. 22.
Feb. 23.
1Veek.
$ per share $ per share
per share $ per share
Per share
Per share Shares. Indus. &Miscell.(Con.) Par
2834 29,4 2814 2914 28
2834 2812 2614
2834 2958 10,400 Adams Millis
1014 10,4 1018 10% •10
No par
1014
Mg 108
10
105* 1,500 Address MuMgr Corp
10
(334 634
612 7
•6% 7
.658 634
634 634
700 Advance Rumely
878 878
No par
8% 8%
834 8%
878 8%
812
83
4
1.600 Affiliated Products Inc_No par
103 10312 102 10214 103 103
103 10334
10114 10134 1,100 Air Reduction Ino
No par
3
3% 318
314
313 313
313 318
3
318 1,300 Air Way Eleo Appliance No par
2238 2278 22
2234 22
2214 21% 2214
2034 22
22,100 Alaska Juneau Gold Min _ __10
6
6
*6
678 .612 672 *6
612
*6
612
100 A P W Paper Co
412 434
458 434
No par
412 434
438 434
438 434 8,900 Alleghany Corp
13
1314 13
No Par
1358 13
13
1212 13
1112 1234 4,100
Prof A with $30 warr___100
12
12
11
1218 •1114 1178 1118 1183
10
1014
800
Prof
A
with $40 warr___100
12
12
*11
1178 *1114 1178 1118 1118
1014 1014
800
Prof A without warr___100
23
*2212 24
23
*22
2312 2214 2214
2318 2313
500 Allegheny Steel Co
15712 16034 156 160,4 156 159
No par
15713 15912
155
158
11,100
Allied Chemical & Dye_No par
*12312 12434 12434 12434 *12418 12431 12434 125
*12434 126
400 Preferred
2112 2134 21
21% 2034 211, 2012 2112
100
2018 2034 10,000 Allis-Chalmers Mfg___ No par
17
17
1714 1712 1634 1634 1718 1718
1634 1634 1,000 Alpha Portland Cement No par
*434 5
•434 5,4 *412 5
•458 5,4
*412 514
Amalgam Leather Co
1
•2714 34
*2712 34
*2712 34 •28
31
28
28
100
7% preferred
50
49% 5018 4912 4912 49
50
4834 49%
4814
4913 3.400 Amerada Corp
No par
34
3414 33
3438 3214 3252 3213 3212
32
3234 2,500 Amer Agric Chem (Del) No par
2013 2134 2034 22
*2014 2034 2034 21
1914 21
2,100 American Bank Note
*4512 4678 4513 4512 4414 4512 4512 4512
10
4512 4512
110
Preferred
50
1178 1218
1178 1218
1118 1158 11
1112
11
1114 3,000 American Beet Sugar__No par
59
59
5712 57% 5712 5712 5912 62
62
6312 1,010
3,534 3534 36
7% preferred
100
36
3612 3612 *36
3613
35
36
1,000 Am Brake Shoe & Fdy _No Par
•1O212 106 *10213 106 *10312 106
104 104
106 106
40
Preferred
100
10534 107% 10412 106
105 10612 105 10534
10212 10612 19,900 American Can
25
139 139 •140 14212 *140 142 *14014 142
•140 142
200
Preferred
100
3134 32
3212 3134 32
31
3134 3278
3034 3238 4,100 American Car dr Fdy_-__No par
5434 5434 53
.54
•53
54
*53
54
53
53
400
Preferred
100
*91. 10
*9% 912
9
082 912
9
10
1018
800 American Chain
No par
*26 • 3313 30
30 •28
32
*28
34
•28
31
100
7% preferred
100
5112 51
51
51
52
52
5033 5058
61
5112 1,100 American Chicle
No par
512 512 *5
512 *5
512
5
5
5
538
600 Amer Colortype Co
10
4812 4934 4734 4912 4814 4844 49
4934
4834 50
7,800 Am Comml Alcohol Corp 20
4% 4%
418 4%
4
414
414 414
378 4,4 4,200 Amer Encaustic Tiling_No par
4110
1018 *938 1013 •958 1012 •938 10
9
3
4
10
200 Amer European Sec's__No par
1158 1134 1114 1214 11% 11% 11% 1134
1012 1112 14,500 Amer at For'n Power__ _No par
261.4 2614 26
2614 2512 2513 *2412 2512
25% 2614
1,200
Preferred
No par
*1438 15
1412 15
1514 1514 14% 1478
15
15
1,300
2nd preferred
No Par
•22
23
20
2012 •1934 2112 •1933 20
1934 20
1,000
$6 preferred
No par
221.f 2214 2114 2218 2114 2134 2118 2178
2014 2153 3,200 Amer Hawaiian S S Co____10
*834 934
9,2 9,2
8% 9,2
912 912
•8% 9,
500 Amer Hide & Leather_No pa
39
39
•3814 39
*3814 39
*3814 3834
387
8 387
200
Preferred
100
3412 3412 35
34
*3434 35
3434 3434
3434 343
1,200 Amer Home Products
912 934
9% 934
912 924
932 934
9% 9, 4,900 American Ice
No
pa
4312 *4138 4312 *43
•41
4312 4258 43
4312 431
500
6% non-cum prof
100
1018 1038 10
938 10
1014
934 978
912 10
5,700 Amer 1nternat Corp ._No pa
•114
138
114
138
114
138
138 138
138
138 1,500 Am L France & Foamite No pa
*8
612 .612 634 •638 7
512 658
•612 7
180
Proterred
10
3713 38
3712 3778 3712 38
38
3812
3613 3814 4,400 American LocomotIve...No Pa
6912 7014 6812 681 •6834 70
*6834 70
70
71
1,100
Preferred
10
1778 1773 1712 173
1714 17% 1738. 1758
17
1714 2,300 Amer Mach & Fdry Co_No pa
712 8
712 75
758
714 714 *718
Stock
7,8 71s 1,000 Amer Mach & Metals__No
26% 2634 2512 271
26
26% 2512 2614
2414 2613 15,300 Amer Metal Co Ltd....No Pa
pa
•87
94
*87
95
*87
93
*87
90 Exchange
90
90
100
6% cony preferred
10
30
30
*2713 291 *27
28
28
28
*27
29
110 Amer News Co Inc____No pa
1078 1118 1013 11
1018 1012 1014 10%
Closed
9
3
4
1014
20,700
Amer Power & Light__No pa
26% 271
25
211
25
2578 2514 2512
23
2512 3,100
$6 preferred
No pa
•2278 233
22% 221
2112 2112 2112 22
Washing.
1933 2113 2,600
$5 preferred
No pa
1578 161
16
161
16
16,4 1578 1618
1558
1614 29,400 Am Rd & Stand San'y No pa
2658 28
26% 281
26% 2714 2634 2734
ton's
26
2734 65,900 American Rolling Mill
2
4512 451 •4512 46
46
4658 4634 4714
47% 4738 1,600 American Safety Razor No pa
5% 638
6% 71s
4
6
658 Birthday
614 612 9,900 American Seating v t e_No Pa
134 18
134 134
134
134
134
173
134
17
2,500 Amer Ship & Comm__ _No par
2578 2578 25
25
•2514 2612 *2412 26
2412 241
80 Amer Shipbuilding Co_No par
49
4934 48
49% 48% 48% 4818 4938
4612 493 47,900 Amer Smelting dr Retg_No par
106% 1068 10712 10712 107 107
10734 MTh
10712
108
800
Preferred
100
82
82
8213 8314 82% 8238 •8112 8258
8312 841
900
2nd preferred 8% cum
100
54
5412 54
54
*5412 5434 *5313 541
*53
643
400
American
Snuff
25
*108 ____ •108
*110
•110
110 110
10
Preferred
100
25
2513 2412 2558 2418 2412 2414
2234 241
3,900 Amer Steel Foundrles__No Par
80
80
*80
82
80
81
8012 81
*7314 80
80
Preferred
100
*4234 4312 .4234 4354 *4234 4318 4234 423
42
42
200 American Stores
No pa
57
5778 56
5734 56% 56% 5638 .571
*5614 571
2,200
Amer
Sugar Refining
100
*106 11012 *10712 110 *10712 110 •10712 110
*108% 110
Preferred
100
19
1912 1914 1912 19
19
19
191
1738 18% 1.900 Am Sumatra Tobacco__No pa
122 12212 122 123
122 12278 12234 1233
12034 124
13,405 Amer Telco & Teleg
100
7512 7558 7512 76
74
74
74
75
74
74
1,900
American Tobacco
25
7634 7712 7612 7714 76
77
7534 77
7514 75% 12,700
Common class II
2.
*116 11912 *115 125 *11812 12012 •11912 1211
11912 11912
200
Preferred
10
734 9
11
9
11 14 12
12% 13
1178 11% 10.600 Am Type Founders____No pa
1612 17
17
22
23
2613 2638 283
221
: 27,4 4,080
Preferred
10
2314 2358 2212 2358 2212 2234 2212 223
2178 2234 14,100 Am Water Wks & Eleo_No pa
•_
Common
vol
tr
etts.No
Pa
773
4
77
77 '7058 V8-1:2 ;i1518
1,76T8 -773
7734 ---ion
'72
1st preferred
No pa
1513 1578 1538 1534 1532 1512 15% 151
1458 1534 5,600 American Woolen
No pa
7812 7913 78
79
7614 77
76
76
7634 77
2.700
Preferred
100
258 258 *212 234
234 234
214 234
212 212 2.000 Am Writing Paper ctts
1
11
*10
11
11
11
11
11
1134
11
1131
460
Preferred certificates No par
•8
77
7%
8
81
8
853
712 818 2,200 Amer Zinc Lead & Smelt..1
8
814
*45
*45
•45
50
52
50
•45
4978
*45
4978
Preferred
25
1678 17
1612 171
1638 1634 1612 1634
1534 1878 33,300 Anaconda Copper MinIng 50
*10
12
*10
12
•10
12 •10
12
•10
12
Anaconda
Wire & CableNo par
2112 211, 2112 213
2158 2158 2114 2114
2012 2158 2,000 Anchor Cap
No par
•86
88 .86
88 .
8612 88
*87
88
•8612 88
$0.50 cony preferred_No par
•8
918 *8
*8
91
918 *8
918
•8
918
Andes Copper Mining No par
30
30 •2913 30
2914 2914 2852 2938
2914 30
1,300 Archer Daniels Midrcl_No par
•110 112 *110 112 *111 112 •111 112
•111 112
7% preferred
100
86% 87
•8614 88
*8614 88
•8614 88
86
87
800 Armour & Co (Del) prof 100
612 634
(1% 67
6% 678
812 634
578 612 70.100 Armour of Illinois class A__25
354
338
318 31 8
314 338
314 3%
278 318 18,900
Class B
25
6212 6378 6118 6314 62
6314 6214 6312
57% 61% 23.000
Preferred
100
778 8
738 712
714
7%
773
738
673 712 7,400 Arnold Constable Corp
5
738
712
7,2 7,2
712 7%
8
9
814 878 2,100 Artloom Corp
No par
3
338
314
2%
3,4
318
234 3
2% 234 3.900 Associated Apparel Ind No par
1714 1818 1758 1814 17% 1734 17% 1778
1634 1734 6,100 Associated Dry Goods
1
74
•63
*6418 74
*65
74
*66
74
.66
74
6% let preferred
100
•57
60
60
60 .57
65
*59
65
*59
65
100
7% 2d preferred
100
•31
34
*31
34
34
3213 3212
*31
3534 3534
20 Associated 011
25
*15
22
•15
23
*15
22
4116
20
•16
20
At 0 & W I SS LinesNo Pa
*21
25
*2013 25
*20
25
*22
25
•22
25
Preferred
100
34
3412 33:2 3478 x3318 3312 32% 3334
32
33% 16.000 Atlantic Refining
25
4512 46
44
4512 458 4578 45
4612
44
45
2.800 Atlas Powder
No pa
95
95
9712 98
*96
98
*96
08
98
08
260
Preferred
100
9% 973 •91t 978
9
934 *9
978
9
91s
300 Atlas Tack Corp
No pa
5314 56
5411 5614 5414 5534 5434 5638
52% 55% 24,300 Auburn Automobile
_No pa
12% 1278 1212 13% 1334 1432 14
1538
1418 16
19,700 Austin Nichols
No pa
613 6%
612 678
64 712
7
712
738 8
66,000 Avlatton Corp of Del (The)__5
1418 1434 14
1434 1418 145* 14% 145*
1338 1438 31,600 Baldwin Loco Works_ _No pa
*4738 4934 48
48
50
50 •47
50
49
50
400
Preferred
100
*94
99
*9314 99
*9314 99
99
*96
09
99
100 Bamberger (L) & Co pref 100
52
518
47
5,4 5%
5
51
538
5
514 1,590 Barker Brothers
No pa
2713 27% *2652 29
27
27
2712 271
26
28
470
814% cony preferred___ 100
9% 934
914 934 35
9
938
918 914
834 9,2 15.800 Barnsdall Corp
33
3612 37
*3512 37
3112 3534
36
3634 1,500 Bay uk Cigars Inc
No pa
90
90
1590
9213 .
90
9258 •90
99
*9012 9212
30
1s1 preferred
100
•1534 15% 1534 16
*1534 16
15
1534 154
1512
800 Beatrice Creamery
25
.75
7812 80
80
*69
80 .69
•7078 7934
100
Preferred
100
5934 59% •59
60,4 5934 60 •59
*5612 60
300 Beech-Nut Packing Co
2
1414
1338 12% 1314
13
13
1334 14
1318 14
43,000 Belding Heminway Co_No pa
10612 10612 105 10512 •105 110 .10618 1081*
10514 105%
500 Belgian Nat Rys part pref..
Saturday
Feb. 17.

• Bid and asked prices, no sales on this day. a Optional sale. c Et-dividend.




y Ex-right s. c Cash sale.

PER SHARE
Range Since Jan. 1.
On basis of 100-share lots.
Lowest.

Highest.

per share
16 Jan 5
734 Jan 5
518 Feb 10
8% Jan 13
9512 Jan 9
178 Jan 3
2034 Jan 4
5 Jan 13
3% Jan 8
578 Jan 4
5% Jan 3
514 Jan 8
1712 Jan 2
144 Jan 8
122% Jan 16
1612 Jan 8
1234 Jan 2
4 Jan 15
25 Jan 8
4112 Jan 4
2514 Jan 4
1412 Jan 4
40 Jan 4
712 Jan 4
4612 Jan 4
28 Jan 5
913 Jan 10
9418 Jan 5
12612 Jan 6
2314 Jan 6
3814 Jan 8
612 Jan 11
2012 Jan 10
4614 Jan 8
338 Jan 2,
4734 Feb 19
238 Jan 6
6 Jan 3
734 Jan 3
17 Jan 4
934 Jan 4
12 Jan 4
1714 Jan 5
714 Jan 12
3078 Jan 8
2618 Jan 5
618 Jan 4
3514 Jan 8
612 Jan 8
34 Jan 5
4 Jan 18
26% Jan 4
50 Jan 8
13 Jan 4
314 Jan 3
18 Jan 4
73 Jan 2
21 Jan 3
578 Jan 4
1334 Jan 6
1278 Jan 5
1378 Jan 4
1712 Jan 6
36 Jan 13
314 Jan 10
1 Jan 4
1914 Jan 4
4134 Jan 4
100 Jan 2
7114 Jan 2
4834 Jan 5
106 Feb 2
1914 Jan 5
68 Jan 4
37 Jan 3
46 Jan 3
10312 Jan 3
1512 Jan 5
10734 Jan 4
8514 Jan 8
07 Jan 8
10714 Jan 3
478 Jan
734 Jan 6
x1834 Jan 4

$ per share
2934 Feb 16
1138 Feb 6
7% Feb 5
933 Feb 6
10614 Jan 24
3,4 Feb 16
2378 Jan 15
714 Feb 2
514 Feb 1
1458 Feb 5
1312 Feb 5
1212 Feb 5
2318 Feb 23
16034 Feb 17
126 Jan 4
2338 Feb 5
2013 Feb 5
534 Feb 1
29 Jan 31
5038 Feb 2
38 Jan 24
23 Fen 5
4612 Feb 7
1234 Feb 3
64 Feb 3
33 Feo 6
107 Feb 7
10734 Feb 15
139 Fen 17
3378 Feb 5
5612 Feb 5
12 Jan 26
31 Feb 7
52 Feb 20
612 Feb 5
6212 Jan 31
5 Feb 16
1012 Feb 3
1334 Feb 6
30 Feb 7
1712 Feb 6
25 Feb 6
22% Feb 16
1012 Feb 5
4058 Feb 8
3558 Feb 5
10 Feb 3
45 Feb 5
11 Feb 0
138 Jan 20
878 Feb 1
3834 Feb 6
71 Feb 7
1934 Feb 5
938 Feb 1
2758 Feb 15
91 Feb 15
3134 Feb 6
1214 Feb
2978 Feb 0
2614 Feb 7
1758 Feb 1
2314 Feb 19
47% FeO 23
7% Feb 19
238 Jan 30
30 Jan 30
5114 Feb 15
108 Feb 23
8412 Feb 23
65 Feb 6
110 Jan 17
2812 Feb 5
81 Jan 30
4114 Feb 7
61 Feu 6
11014 F
3
Feb
b 16
1934
12514 Feb 0
8238 Feb 6
8412 Feb 5
121 Feb 7
13 Feb 21
2834 Feb 21
2753 Feb 7

54 Jan 3
1138 Jan 8
6158 Jan 4
114 Jan 10
514 Jan 6
538 Jan 4
3712 Jan 4
1312 Jan 8
914 Jan 12
18 Jan 8
81 Feb 5
634 Jan 30
2614 Jan
110 Jan 24
76,4 Jan
414 Jan
214 Jan
55 Jan
358 Jan 10
414 Jan
1 Jan
1118 Jan
50 Jan
50 Jan
2912 Jan
1214 Jan
20 Jan 1
2814 Jan
3514 Jan
83 Jan
712 Jan 1
4734 Jan
7 Jan
5% Feb 10
11 Jan
35 Jan
8012 Jan
3 Jan
1618 Jan 9
734 Jan 4
27 Jan 3
89 Jan 15
1038 Jan
55 Jan 13
59 Feb 16
8% Jan 3
9512 Jan 9

PER SHARE
Range for Previous
Year 1933.
Lowest.

Highest.

$ per share $ Per share
8 Apr 2158 July
518 Apr
1212 June
134 Feb
932 July
558 July
1134 May
4712 Feb 112 Sept
12 Feb
4 May
1118 Jan 33 Aug
1
Jan
952 July
72 Apr
814 July
1
Apr 2178 July
118 Apr 21 July
114 Mar 20 July
5 Mar 28 July
7034 Feb 152 Dec
115 Apr 125
Oct
8 Feb 28% July
534 Jan 24 July
58 Feb
914 July
5 Feb 40 July
18% Mar 4758 Nov
714 mar 35 July
8 Mar 2812 July
34 Apr 4978 June
1
Jan
1834 July
234 Jon 64 Sept
918 Mar 4212 July
60 Mar 106 Aug
4912 Feb 10012 Deo
112 Feb 134 July
618 Jan 3934 July
15 Feb 5934 July
152 Mar
14 July
312 Mar 3112 July
34 Mar 5114 July
2 Feb
6,8 June
13 Feb 8972 July
1
Jan
6 June
378 Apr
13 July
378 Feb
1958 June
714 Apr
4478 June
438 Apr 2714 June
818 Apr
3538 Juny
418 Jan
2112 July
212 Mar
16 June
1312 jr*b 5712 June
2484 Dec4212 May
334 Feb1712 June
25 Feb5778 June
414 Fob
1518 July
14 Apr
312 June
114 Jan
12 June
57 Jan 3918 July
1734 Jan 83 July
834 Feb 2288 July
1
Jan
8 June
358 Feb 2358 July
1512 Jan 7572 Nov
17
Jan 3012 July
4 Feb
1972 July
97 Apr 4112 July
9 Apr 35 July
458 Feb
19 July
554 Mar 3172 July
2012 Apr
4734 July
7% July
% Mar
Is Apr412 J une
1112 Mar
3634 June
1034 Feb 5312 Sept
31
Jan 9912 Dee
2012 Jan 73 July
3212 Jan 51,4 Sept
10218 Jan 112 Jul,
458 Feb 27 July
3758 Mar 85 July
Feb 477k July
30
2112 Jan
74 July
80
Jan 11214 July
Jan 26 July
6
8812 Apr 13434 July
49
Feb 9078 July
5034 Feb9484 July
10234 Mar 120 July
218 Dec25 July
7
Oct37% July
1078 Apr 4314 July
3578 June
912 Apr
80 Feb 5
35 Mar 80 June
1718 Feb 5
34 Mar
17 July
8334 Feb 7
2258 Feb 6712 Dec
3 Jan 12
88 Feb
418 June
1478 Jan 20
1434 July
24 Feb
9 Feb 16
214 Feb
1078 July
5018 Feb 16
20 Feb 66 July
1758 Feb 5
5 Feb 2'278 July
12 Feb 5
418 Jan
1512 June
2434 Jan 31
Jan 3914 July
8
8812 Jan 8
6212 Jan 90 Juno
912 Feb 10
258 Feb
1412 June
3178 Feb 1
934 Mar 2914 July
112 Jan 11
95
Feb 115 July
87 Jan 2:3
41
Jan 00 July
(3% Feb 19
1 18 Feb
734 June
3% Feb 16
5 July
114 Feb
6414 Feb 10
7 Feb 93 July
838 Feo
118 Jan
7 July
9 Feb 21
2 Mar
912 June
34 Apr
312 Feb 15
514 June
1814 Feb 6
312 Feb20 July
71 Feb 9
18 Feb 0112 July
60 Feb 7
Jan
15
5134 July
3534 Feb 23
6% Mar
3512 July
1512 Jan 26
44 Mar 28 July
22 Feb 7
412 Apr 3378 July
3514 F%12 5
123 Feb 3212 Nov
4612 Fob 21
9 Feb 3918 July
98 Feb 19
60 Apr8312 Sept
1112 Jan 22
112 Feb 3434 Dee
57 Feb 5
31
Oct8414 July
16 Feb 23
78 Fob 98 July
1034 Jan 31
512 Feb
1638 July
18 Feb 5
312 Apr 1758 July
5412 Feb 6
9,2 Apr 80 July
99 Feb 23
8814 Fob 9978 Aug
612 Feb 5
Jan
714 June
33 Feb 5
512 Apr 2414 July
10 Jan 22
11 July
3 Mar
39 Feb 5
5212 July
314 Jan
91 Feb 7
27
Jan 100 July
18 Feb 6
7 Mar 27 June
81 Feb 7
45 Feb85 May
6212 Jan 17
Jan
7012 June
45
1414 Feb 20
1212 July
312 Feb
107 Feb 14
8214 Apr 10114 Nov

New York Stock Record-Continued-Page 3

1361 1

rar FOR SALE DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE THIRD PAGE PRECEDING.
111011 AND LOW SALE PRICES-PER SHARE. NOT PER CENT.
Saturday
Feb. 17.

...Monday
Feb. 19.

Tuesday
Feb.20.

Wednesday
Feb. 21.

Thursday
Feb. 22.

STOCKS
NEW YORK STOCK
EXCHANGE.

PER SHARE
Range Since Jan. 1.
On basis of 100-share lots.
Lowest.

Highest.

PER SHARE
Range for Prevotus
Year 1933.
Lowest.

Highest.

Indus. &Miscell.(Con.) Par 5 Per share
$ Per share $ per share $ per share
64 Feb 2114 July
5 1618 Jan 3 2378 Feb 1
Bendix Aviation
3312 Aug
9 Mar
No par 2512 Jan 8 3334 Feb 19
Best de Co
1018 Mar 4914 July 1
Bethlehem Steel Corp_No par 3434 Jan 4 4912 Feb 19
2514 Feb 82 July i
100 6514 Jan 4 82 Feb 19
7% preferred
Ws Apr 2912 June '
Bigelow-Sant Carpet Ina No par 27 Jan 4 40 Feb 5
1914 July
312 Feb
1053 Jan 4 1614 Jan 30
No par
Blaw-Knox Co
653 Feb 21 July
18 Jan 12 26 Feb 7
Bloomingdale Brothers_No par
912 Mar 5813 Dee
Bohn Aluminum & Br
5 55 Jan 6 6834 Jan 24
52 Feb 78 Dec i
79 Jan 9 81 Jan 25
No par
Bon Arai class A
18 Feb 3712 July I
25 1978 Jan 6 2712 Feb 5
Borden Co (The)
512 Feb 2214 Dec 1
Borg-Warner Corp
10 2034 Jan 3 2818 Feb 5
412 July
3 Feb 9
as May
1 Jan 2
Botany Cons Mills class A 50
258 Feb 1458 July
Briggs Manufacturing_No par 12 Jan 6 1818 Jan 30
25 Dec 3814 Sept
Bristol-Myers Co
5 26 Jan 4 3514 Feb 5
60 Dec 8812 June
Brooklyn Union GLUT_ __No par 61 Jan 4 8012 Feb 6
2812 Mar 5373 July
No par 5014 Jan 5 61 Feb 16
Brown Shoe Co
1812 June
134 Mar
7 Jan 5 1033 Feb 1
Bruns-Balke-Collender_No par
1272 June
2 Feb
938 Feb 5
653 Jan 9
10
Bucyrus Erie Co
1953 June
234 Feb
5 10 Jan 2 1414 Jan 30
Preferred
2012 Mar 72 June
100 6312 Jan 9 75 Jan 15
7% preferred
74
10
*70
34 Apr
97g July
738 Jan 30
518 Jan 3
No pa,
634 7,4 33.300 Budd (KG) Mfg
35 July
3 Mar
100 25 Jan 2 3738 Feb 23
3613 3738 1,750
7% preferred
534 July
1
Feb
538 Jan 30
338 Jan 5
No par
458 518 13,100 Budd Wheel
5 June
74 Mar
434 Feb 21
278 Jan 9
No par
.453 434
400 Bulova Watch
1314 July
213 Feb
734 Jan 4 151 3 Feb 16
No par
1518 8.200 Bullard Co
14
2073 July
618 Feb
15 Jan 6 x1938 Feb 1
1718 1778 10,900 Burroughs Add Mach_No par
8 June
1
Apr
37g Feb 9
313 313 1,100 Bush Term
218 Jan 2
No par
912 June
1
Apr
3,3 Jan 20
100
558 Feb 13
Debenture
•55* 858
8 Dec
418
Dec
153
4
Feb
23
Jan
3
5
,
a
pref
ctfs_100
Term
BI
gu
1434 1534
Bush
260
1
Feb
218 Feb 16
273 June
112 Jan 13
158 178 1,400 Butte ,k Superior Mlning_10
12 Mar
414 June
3 Feb 16
2 Jan 2
5
212 234 2.000 Butte Copper de Zino
713 June
114 Apr
434 Feb 1
213 Jan 2
No par
418 418 1.000 Butterick Co
812 Feb 4314 July
2172 Jan 6 3234 Feb 7
No par
29
3113 11,500 Byers Co (A NO
80
July
3018
Mar
63
Feb
16
Jan
15
4714
100
Preferred
62
62
150
3434 July
734 MST
1834 Jan 4 2714 Fen 1
_ __No par
2553 27
1,800 California
134 Jan 23
214 June
14 Jan
78 Jan 9
10
Packing133 112 3,100 Callahan Zino-Lead
2 Feb
938 June
658 Feo 5
4 Jan 3
512 534 4,400 Calumet & Ueda Cons Cop_25
1614 July
2 Feb
913 Jan 4 1578 Feb 23
1458 1578 11.500 Campbell W & 0 Fdy _No pa.
713 Feb 4112 July
2434 2512 2,000 Canada Dry Ginger Ale____5 2414 Jan 4 27,8 Feb 1
14
Feb 3512 July
No par 2813 Jan 4 3258 Feb 19
3112 3134 2.200 Cannon Mills
1212 July
414 Oct
934 Feb 7
518 Jan 2
1
400 Capital AdmInle ol A
918 918
2518
Jan 3512 July
24
32
Feb
7
Jan
263
4
10
Preferred A
*26
30
3012
Feo
6
Feb
10312
July
Jan
8
863
4
6518
100
7634 8012 6,200 Case (J I) Co
41
Feb 8614 July
Preferred certificates...100 63 Jan 5 8412 Feb 6
260
8014 82
4
3238
Feb
15
512
Mar
29
3
4
July
Jan
par
2312
Tractor_No
3014 3158 6,300 Caterpillar
413 Feb 5872 July
3913 4278 35,800 Celanese Corp of Am__No par 3378 Jan 2 4478 Feb 5
12 Mar
578 July
378 Feb 9
214 Jan 9
No par
600 Celotex Corp
318
•3
33 Feb
438 July
258 Jan 18
158 Jan 9
No par
Certificates
400
•178 218
1234 July
112 Jan
612 Jan 18 10 Feb 6
100
Preferred
250
8,2 834
5
14
3218
Feb
Jan
41
July
23
par
273
4
Feb
Aguirre
Asso_No
2734 2812
900 Central
2 Apr
1153 July
734 Jan 16 1238 Feb 19
1113 12
4,200 Century Ribbon Mills_No par
52 Feb 100 Dec
100 85 Jan 15 95 Jan 2
Preferred
*8314 93
574 Jan 4434 Sept
25,000 Cerro de Fano Copper_No par 3258 Jan 4 4014 Feb 15
3534 38
1
712 Feb 1
Jan
75* July
314 Jan 2
614 658 3,700 Certain-Teed Products_No pa,
1
4 Mar 3014 July
31
Feb
19
Jan
1712
100
preferred
*26
100
7%
2910
718 Mar 25 June
1714 Jan 5 2438 Jan 30
No par
2173 22
3.000 City Tee & Fuel
APr 72 July
45
100 67 Jan 3 7834 Feo 7
74
74
Preferred
340
712 Mar 2312 Oct
5 11 Jan 27 14 Feb 2
*1314 1634
Checker Cab Mfg Corp
1473 Jan 5212 July
No par 34 Jan 4 46 Feb 5
41
4238 3,100 Chesapeake Corp
218 Mar 1238 July
978 Feb 5
614 Jan 6
834 9
2,300 Chicago Pneumat Tool_No par
512 Feb 2514 June
1613 Jan 12 2214 Jan 29
No par
2012 22
1,300
Cony preferred
618 Jan
2238 May
1134 Jan 15 1312 Feb 3
1134 1134
No par
100 Chicago Yellow Cab
Mar
Feb
5
5
34 July
3034
8
Jan
10
1914
29
2918 3,000 Chickasha Cotton Oil
2 Feb
10,3 July
6 Jan 6 11.58 Feb 19
1014 1138 16,500 Childs Co
Yo par
Apr 2112 July
6
15
25 13 Jan 13 1678 Feb 16
15
10 Chile Copper Co
734 Mar 5758 Der
6 4978 Jan 13 6038 Feb 23
5753 6038 157,44 Chrysler Corp
14 Feb
353 July
218 Feb 6
78 Jan 5
158
178 4.500 City Stores
No par
1414 June
5 Mar
1618 1718 1,280 Clark Equipment
834 Jan 5 1718 Feb 23
No par
10
Jan
4112 July
3514 36
600 Cluett Peabody dr Co No par 28 Jan 3 3912 Feb 5
90
Jan 100 June
•105 10914
100 95 Jan 17 109 Feb 19
10
Preferred
7312 Jan 105 July
10812 10913 2,500 Coca-Cola Co (The)__No par 9514 Jan 2 10912 Feb 23
Dee
44
Apr 51
51
51
300
Class A
No par 5018 Jan 11 5138 Feb 20
7 Mar 2233 July
16
17
933 Jan 3 1738 Feb 21
47,300 Colgate-Palmolive-Peet No par
49
Apr 88 Aug
•80
87
100 6813 Jan 8 85 Feb 21
500
6% preferred
3 Apr 26 Sept
2633 28
12,400 Collins & Aikman
No par 18 Jan 8 2812 Feb 19
Jan
12
514 May
9 Feb 5
•753 9
8 Jan 22
Colonial Beacon Oil Co_No par
273 Dec 1753 July
834 Feb 6
8
834 6.900 Colorado Fuel & Iron_No par
358 Jan 2
2318 Feb 7112 July
6734 7034 9.200 Columbian Carbon vie No par 58 Jan 8 71 Feb 19
653 Mar 28 Nov
25
25
500 Columb Pict Corp v t e_No par 23 Jan 6 2714 Jan 20
9 Mar 2813 July
1578 1678 47,300 Columbia Gas & Elec__No par
1118 Jan 4 1914 Feb 6
50 Dec
83 June
7534 7534
1,200
Preferred series A
100 52 Jan 5 7534 Feb 23
1914 Dec
4 Feb
28
2934 27.200 Commercial Credit
10 1858 Jan 4 3018 Feb 21
16
Feb
3912 Aug
44
4414 1,000
Class A
50 38 Jan 3 4412 Feb 21
Sept
Mar
2518
20
1818
28
Feb
28
Jan
3
29
410
Preferred B
25 24
70 Mar 9573 Sept
97
97
190
(iIk % first preterred____100 9112 Jan 3 97 Feb 7
18 Mar 4312 July
5318 5438 12,300 Comm Invest Trust___No par 3534 Jan 4 5412 Feb 21
9773 Jan
84
Jan
*101 102
900
Cony preferred
No par 91 Jan 3 10112 Feb 6
2838 2978 46,100 Commercial Solvents No par 23,4 Feb 14 3634 Jan 30
9 Feb 5714 July
114 Dec
612 June
234 3
59,900 Commonwlth dr Sou_ No par
134 Jan 2
334 Feb 6
1733 Dec 6012 June
3814 3834 3,300
$6 preferred serles
No par 2112 Jan 2 4478 Feb 7
3 Apr
11 June
Conde Nast Public'ns_No par
734 Jan 27 1012 Jan 16
*214 934
29
30
733 Jan 2758 July
11,000 Congoleum-Nairn Ine_No par 23 Jan 9 3114 Feb 16
18 June
1278 1278
612 Feb
700 Congress Cigar
934 Jan 12 1334 Feb 6
No par
312 Apr
1934 June
1034 1112 3.500 Consolidated Cigar____No par
614 Jan 2 1214 Feb 6
31
APr 65 June
5212 5212
30
Prior preferred
100 4514 Jan 2 55 Jan 31
534 May
434 538 3.100 Consol Film Indus
134 Jan
534 Feb 15
212 Jan 2
1
1434 May
16
572 Mar
1634 7,300
No par
Preferred
1058 Jan 2 1713 Feb 15
4013 4112 52,500 Consolidated Gas Co _No par 3558 Jan 4 4738 Fel, 6
34 Dec 6418 June
Jan
*88
8158 Dec 99
8834 2,100
Preferred
No par 82 Jan 4 9214 Feb 6
112 Dec
512 Jan
1,100 Consol Laundries Corp_No par
438 Feb 7
3,8 314
218 Jan 8
5 Mar
1534 July
13
1334 45,200 Consol 011 Corp
No par
934 Jan 8 1414 Feb 13
•104 10912
Oct
9512 Mar 108
8% preferred
100 108 Feb 9 109 Feb 9
153 134 25.600 Consolidated Textlle___No par
,4 Ma
314 July
218 Feb 7
73 Jan 4
878 938 3.300 Container Corp class A
113 Jan
1014 July
912 Feb 19
20
618 Jan 5
378 418 18,400
14 Feb
412 June
Class B
238 Jan 2
41g Feb 19
No par
1278 1334 4.100 Continental Bak class A No par
3 Mar 18,4 July
7 Jan 8 1458 Jan 24
2
2
3,700
312 July
Class B
No par
1 Jan 1
238 Feb 7
Is Jan
6213 6234
500
Jan 64 July
36
Preferred
100 46,4 Jan 6 64 Feb 9
7734 80
5,400 Continental Can Inc
3514 Feb7833 Dec
20 75 Jan 6 8112 Feb 15
1038 1038 1,500 Conti Diamond Fibre
171g July
312 Feb
5
718 Jan 5 1134 Feb 6
3112 32
1,700 Continental Insurance___2.50 2333 Jan 6 3478 Feb 5
1013 Mar 3612 July
218 258 41,100 Continental Motors___No par
4 June
1 Mar
118 Jan 2
238 Feb 21
1914 2014 45,700 Continental 011 of Del
472 Mar
1958 Sept
5 1612 Jan 13 2034 Feb 5
7312 7414 6,500 Corn Products Retining____25 7214 Jan 9 8412 Jan 26
4533 Feb9058 Aug
14014 14014
340
Preferred
100 135 Jan 4 141 Feb 16 11712 liar 14534 Jan
714 712 6,300 Coty Inc
233 Ma
712 June
No par
334 Jan 2
978 Feo 5
33
33
2,300 Cream of Wheat otte
23 Feb3913 July
No par 28 Jan 3 35 Jan 31
1212 1212 1,000 Crosley Radio Corp_
214 Mar
1434 June
No par
8 Jan 2 1412 Jan 30
3114 33
1,800 Crown Cork & Seal
No par 2914 Jan 5 3614 Feb 1
1414 Feb65 July
2953 3933
400
$2 70 preferred
No par 3512 Jan 2 40 Feb 16
2412 Feb3812 July
Apr
812 July
514 532 2,000 Crown Zellerback v t c_No par
378 Jan 6
1
614 Feb 6
34
3614 12,000 Crucible Steel of Amerloa_100 2138 Jan 4 38,
8 Feb 19
9 Mar
3712 July
83
64
700
Preferred
100 48 Jan 12 6914 Feb 17
16 Feb6038 July
258 234 1,400 Cuba Co (The)
No par
1 Jan 2
313 Feb 9
12 Feb438 June
Ms may
778 818 7,100 Cuban-American Sugar_ ___10
118 Jan
312 Jan 10
978 Feb 8
42
4212
250
Jan 68 June
Preferred
100 2018 Jan 9 4734 Feb 8
10
45
47
1,700 Cudahy Packing
50 37 Jan 2 5034 Feb 16
2034 Feb5913 June
2112 2234 9,500 Curtis Pub Co (The)__No par
1313 Jan 8 2234 Feb 23
612 Mar
3214 June
62
64
3.100
Preferred
No par 4312 Jan 3 64 Feb 21
30
Feb66 June
414 458 58,000 Curtiss-Wright
1
212 Jan 2
514 Jan 31
112 Feb438 July
10
1034 32,900
Class A
1
514 Jan 3 1034 Jan 30
2 Mar
8 July
19
2014 3.800 Cutler-Hammer Inc___.Vo par 11 Jan 4 2112 Feb 21
44 Jan 21 July
7
7
300 Davega Stores Corp
5
6 Jan 10
814 Feb 5
158 Feb834 July
_
•1191 and asked prices, no sales on 41118 014y. 'Optional sale. c Cash sale 2 Es-dividend. tr Es-rights.

$ per,share $ per share $ per share $ per share
21
2112 2034 2158 2114 2178
3212 3334 *32
33
315,3 3158
4752 4913 4758 4838 4712 4838
8012 8012 7912 81
8012 82
3712 3713 36
37
37
3612
1534 1614 1512 1534 1553 1558
24
2413 2413 25
25
2514
6213 64
63
6534
6614 64
*7813 82
807g 8078 *78
82
2418 2478 2418 2434 2433 2434
2632 2712 2653 2714 2712 2773
218
2
2
218
212 212
1634 1714 1678 17
17
1712
3272 3278 3214 3238 3234 3312
7412 7518 74
74
77
7734
.59
6114 *58
60
5912 59,2
9
•834 9
9
858 958
838 812 *8
814
814 8,2
1212 1258 1218 1214 1212 1212
*6512 70
*6513 70
70
70
633 7
634 7
673 714
31
3414 35
34
3453 3634
453 472
412 473
478 514
*4
458 *4
453
458 434
1412 1434 1514
1414 1518 14
1713 1773 1758 1778 1713 1818
3
3
318
3ls
3ls 312
81
8'2 *5
*514 858 *5
1212 1312 1414
1212 1212 12
2
2
2
2
2
2
273 3
278 278
234 234
*414 412
414 438
418 41
3112 3238 3114 32
31
321
*5714 6412 *61
651
651 *61
26
2612 2614 2614 2658 2634
Vs
138 138
Ps
1,2
Ds
534 6
*534 57
558 534
1312 1418 14
1458 1458 1513
2518 2538 2538 2518 2538 2584
3112 325* *3112 321 *3112 321
*918 10
918 91
*918 10
*25
31
*2518 31 .25
30
81
8138 7914 8012 7913 8014 79
80'1
*8078 8212 *81
82
82
82
*8018 817
3173 3172 31
3218 31
3114 31
311
4178 4278 4138 4314 4214 4313 4234 433
318 318
3,8 338
318 31
*3
31
238 238
1
213 2 4 *134 214 *134 21
9
918
812 9
9
9
*878 9
*28
30
281g 2818 *28
283
2914 2914
1158 1214 1178 1238 1158 1178 12
12
*85
93
*8314 93
*8314 93 .8314 93
i
3858 3918 3718 39
3714 33
3753 381
612 653
638 678
638 658
612 658
*26
2978 *20
2978 *26
297
2934 2934
Stock
*2234 23
2214 2238 22
22
22
22 .:
7338 7313 74
74
74
74,8 7412 7412 Exchange
•1238 1634 *1214 1634 *1213 1634 *1314 1634
4334 4334 4238 4312 43
43
4213 4278
Closed
912 *834 914
933
9
873 9
9
*20
21
20
21
*20
21
*2014 2012 Washing.
*1114 1312 *1158 1312 *1114 1312 *1114 12
2958 2934 2914 30
2834 29
29
30
ton's
1033 1113 1058 1158 1012 11 13 1118 11 12
*15
1678
15
1614 *15
1678 *1514 1678 Birthday
, MEM.LY-Z I.11C go.
.15,2 59.2 5712 5938 158 I 5914 5812 60
134
134
134
178
178
*13
1312 1312 1312 ;13
1313 1313 1658
36
36
*36
37
1 36
36
*3512 36
*105 109
109 109 *105 10912 *105 10912
*104 105
10412 10413 10412 10412 10412 109
*5034 5114 5118 5118 ,.,5138 5138 *51
5112
1538 16
1514 16
1-1513 1614
165* 1738
.83
85
*83
8412 18314 8412 85
85
2778 2814 2718 2412 .2738 2778 2734 2812
*758 9
*758 9
*758 9
*753 9
818 812
858 812 I 77s 8
8
812
6958 6934 6913 71
6912 70
70
71
2513 2513 2514 2514 12512 2513 2573 257a
1738 1752 1613 1713 1638 171s 1638 17
7514 7514 75
7512 75
75
7518 75,4
2738 2778 2714 2814 28
291g 29
30,8
*4312 45
44
44
44
4414 4412 4412
2712 28
28
28
27
29
2812 29
*96
9614 9614 9614 96
9612 9634 9634
5113 52,4 52
5238 52
5212 5412
53
101 101
101 101 *10038 10112 101 101
2958 3058 2834 3018 _2858 2958 29
2973
3
313
3
318
3
318
3
318
42
42
4014 4213 3978 40
3914 40
*914 934 *914 934 *914
1.134 *914 934
2938 3034 2912 2978 2934 3014
3012 31
*1172 1358 1214 1234 1214 1212 13
13
10
1012 1018 1018 1018 1013 103/3 11
*50
52
.50
52
*51
52
*5112 52
1
538 512
5 4 013
5
5
5
5
16s 1714 1653 1714
1612 17
1658 17
4314 4038 4138 4034 4134
4212 4314 41
89
8938 88
8978 90
8834 8878 90
312 353
*312 318
358 313 *314 31
1312 1414
1378 1418
1313 1334 1358 1334
•104 10912 *104 10878 *104 10912 *104 1091
134
158
134
158
158
134
153 134
9
914
873 912
988 988
9
914
378 4
373 418
378 4
4
418
14
1312 1378 1312 13'2
1258 1338 13
2
218
2
2,8
2
218
2
213
*62
64
64
62
*61
62
*6114 64
8012 8072 7912 8078 80
8012 7912 8014
•1078 1114 1012 1078 1018 1018 1034 107
3313
*3234 33
3318 3258 33
33
33
173 218
2
21s
2
238
178 2
1934 2033 1934 2038 1934 20
1934 2Q14
7512 76
76
75
7378 7434
76
76
141 141 *14014 141
14014 141
*14014 141
772
714
712
7,8
758 8
8
8
3312 33
3312 33
3314 33
3318
33
*1212 13
1253 1234
1212 1212 1238 1212
3212 3234 3234 3234 33
*317s 3212 32
3912 3912 3912 3912 *39
40
40
3953
*51, 52,
534 558 .538 512
514 518
3734 3534 3838 36
35
3734
3714 36
6778 6914 66,4 6614 *6214 67
67
*64
252 272
234 234
272 3
234 234
812 87g
812 812
812 873
8
813
4434 4312 4312 42
*44
42
4312 4312
48
48
49
4734 48
48
4818
49
2212
1912 2034 2034 2114 2034 21
21
6012 6012 6012 6112 6112 64
62
62
458
4
458
4
4
433
458 413
10
914 973
912 10
1013 1018 1034
2012 2014 31
20
20
2118 2112
20
•738 8
714 71 1
753
*612 758 *7
g per share
2118 2152
3314 3312
4734 4912
8112 8112
3712 3713
1534 1614
*22
2412
6212 6312
*7813 82
2438 25
27
2713
*134 234
17
1712
3238 3212
78
78
6114
*57
*834 912
*812 834
13
1314
*6614 75
633 613
31
32
47s 472
412 412
15
1558
1734 18
*3
352
*578 852
•1038 1213
*2
214
273 272
414 412
3134 3234
6212 63
•26
2612
138
113
534 6
14
14
26
2612
3134 3134
•918 10
*30
31

I vs 134

,

Friday
Feb. 23.

Sales
for
the
Week.




134

$ per share
2012 2158
3114 32
46
4838
7534 7953
36
37
1438 1513
2412 2412
6212 66
•785* 82
24
2458
2633 28
218 214
1614 1712
3212 33
7714 7712
*58
6114
9
953
813 858
12
1278

Shares.
15.600
2,600
44,800
3.200
230
7,300
320
13,800
100
12,600
10,300
500
30.500
2,200
2,000
200
1,400
2.100
1,500

1362
rfr FOR

New York Stock Record-Continued-Page 4

Feb. 24 1934

SALES'.DURING THE WEEK OF STOCKS NOT RECORDED IN
THIS LIST. SEE FOURTH PAGE PRECEDING.
..
HIGH AND LOW SALE PRICE'S-PER SHARE, NOT PER CENT.
PER SHARE
PER SHARE
Sales
STOCKS
Range Since Jan .1.
Range for Prettiotu
for
NEW YORK STOCK
Saturday
Monday
Tuesday
On
basis
100-share
of
Wednesday Thursday
lots.
Year 1933.
Friday
the
EXCHANGE.
Feb. 17.
Feb. 19.
Feb. 20.
Feb.21.
Feb. 22.
Feb. 23.
Week.
Lowest.
Highest.
Lowest.
Highest.
$ per share $ per share $ per share $ per share $ per share 5 per share Shares. Indus.
& Miscall.(Con.) Par $ per share
$ per share $ per share $ Per share
3234 33
33
3334 3234 3312 3258 3314
3112 3312 20,400 Deere & Co
No par 2612 Jan 5 3412 Feb 1
2438 July 49 July
•1453 15
1434 1478 15
15 .1434 15
15
15
600
Preferred
20 1114 Jan 2 1512 Jan 30
014 Feb 1838 June
8033 8032 8012 81
82
82
82
83
84
84
1,100 Detroit Edlson
100 6313 Jan 5 84 Feb 23
Apr 9112 July
48
43
4412 45
46
4538 4678 4614 4634
4653 4713 3.200 Devoe & Ray[aolds A_No par 29 Jan 6 4912 Feb 5
10 Mar 3372 Aug
2613 2678 26