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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 A 1268 Financial Chronicle 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 Volume 138 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 S 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 T 1270 Financial Chronicle 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- C T Volume 138 Financial Chronicle 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 Volume 138 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 1274 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 Volume 138 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 1276 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." Volume 138 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 1326 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: Volume 138 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- Volume 138 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 1338 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- Volume 138 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 1340 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 Volume 138 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 1342 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 PUBLISHED WEEKLY Terms of Subscription—Payable in Advance Including Postage— 13 Mos. 12 Mos. United States, U. S. Possessions and Territories$10.00 $6.00 In Dominion of Canada 11.50 6.75 South and Central America, Spain, Mexico and Cuba 13.50 7.75 Great Britain, Continental Europe (except Spain). Asia, Australia and Africa 8.50 15.00 The following publications are also Issued: 0011P6NDIUMS-MONTHLY PUBLICATIONS— PUBLIC UTILITY—(semi-annually) RANK AND QUOTATION RECORD RAILWAY & INDUSTRIAL--(fOLll a year) MONTHLY EARNINGS RECORD STAY'S AND MT/NICIPALr—(WHOi-RI112.) The subscription price of the Bank and Quotation Record and the Monthly Earnings Record is $6.00 per year each; for all the others is $5.00 per year each. Foreign postage extra. NOTICE.—On account of the fluctuations In the rates of exchange. remittances for foreign subscriptions and advertisements must be made In New York funds. Terms of Advertising Transient display matter per agate line 45 cents Contract and Card rates On request Cultism) Ossiez—In charge of Prod. H. Gray. Western Representative. 208 South La Salle Street, Telephone State 0613. LONDON Dimes—Edwards & Smith, I Drapers' Gardens. London. E. 0 WILLIAM B. DANA COMPANY, Publishers 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% 14% 24% 24% 24% 24% 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