The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
The
Iliturred31
financial
tonirk
INCLUDING
Railway& Industrial Compendium
Public Utility Compendium
State & Municipal Compendium
Railway Earnings Section
VOL. 125.
SATURDAY, JULY 9 1927.
nit iThronult.
Bank and Quotation Section
Bankers' Convention Section
NO. 3237.
The mysterious transactions in gold abroad continue. During the week the total of gold held abroad
PUBLISHED WEEKLY
was further reduced from $25,734,000 to $13,566,000,
Terms of Subscription—Payable in Advance
Including Postage—
12 Mos. 6 Mos. while at the same time the amount due from foreign
Within Continental United States except Alaska
$10.00
$6.00
In Dominion of Canada
11.50
6.75 banks was further increased in nearly the same
Other foreign countries. U. S. Possessions and territories
13.50
7.75
NOTICE.—On account of the fluctuations In the rates of exchange amount, having risen from $26,610,000 to $38,049,remittances for European subscriptions and advertisements must be made
000. Thus one hand continues to wash the other.
In New York funds.
Subscription includes following Supplements —
The Reserve banks having for some unexplained
COMPENDIUMS—
SECTIONS—
PUBLIC UTILITT (semi-annually)
Bass AND QUOTATION (monthly) reason acquired a large block of
gold abroad are
RAILWAY & INDUSTRIAL (semi-annually) RAILWAY EARNING!!(monthly)
STATE AND MUNICIPAL (semi-annually)
BANKERS' CONVENTION (yearly)
allowing foreign institutions to buy it back, but
Terms of Advertising
without paying for it. The Reserve banks are very
Transient display matter per agate line
45 cents
Contract and Card rates
On request accommodating, as they always
have been, when
OnfesootOrrion—In charge of Peed. H. Gray. Western Representative.
205 South La Salle Street. Telephone State 0 13.
dealing
with
foreign
institutions
,
and accordingly,
LONDON.OPPICI—Edwards & Smith. 1 Drapers Gardens. London. E. 0.
these foreign institutions are allowed to Itinlain inWILLIAM B. DANA COMPANY, Publishers,
Front. Pine and Depeyster Streets, New York
debted for the gold turned over to them.
Published every Saturday morning by WILLIAM B. DANA COMPANY.
In the meantime the Federal Reservt-notes, which
President and Editor. Jacob Seibert: Business Manager. William D. Riggs.
Treas., William Dana Seibert: Soo.. Herbert D.Seibert. Addresses of all. Office of Co
under the Reserve Act are declared to be "obligations of the United States," remain outstanding in
The Financial Situation.
this country to represent the gold which the Reserve
The statements of the Federal Reserve banks this banks are in this free and easy way 'putting at the
week show no novel features, but reflect the extra disposal of the foreign banks, without the hope of
demand for accommodation incidental to the heavy reward or compensation. It is to all intents and
1st of July interest and dividend disbursements and purposes a mere gratuity. When Feral Reserve
the half-yearly settlements. Discounts at the twelve notes are issued in order to grant disCounts to memReserve banks have risen during the week from $477,- ber banks or to buy acceptances or GtiVeroment secu311,000 to $506,768,000, though in partial offset the rities, the Reserve banks get at least S'otnC retnrn on
holdings of acceptances have diminished from $216,- the investment. It adds to the earnings of the Re118,000 to $199,043,000. Holdings of Government serve institutions. Gold held abroad, on the other
securities have not greatly changed, being now $374,- hand, does not earn a penny for anybody unress
there
468,000, as against $376,401,000 a week ago. Al- is some undisclosed earning power
of which the
together the aggregate of reserve credit now em- public has not yet been advised.
ployed (as represented by total bill and security
The matter is made all the worse, because the
holdings of all kinds) stands at $1,081,579,000, as Reserve banks have
more gold at home than they
against $1,071,130,000 a week ago.
have any need for or know what to do with, and
All the items in the returns indicate the exist- hence there is no reason
or excuse for indulging in
ence of more or less tension. Thus, notwithstand- unprofitable expenditure
s of this kind. Anyway,
ing increased borrowing by the member banks, the dabbling in gold abroad,
as explained last week, is
reserve credit of these member banks with the Re- not one of the functions of
the Federal Reserve
serve banks is smaller by $44,000,000 than in the banks and no warrant
of authority for it can be
previous week, the aggregate of these reserves hav- found in the
statute unless an inherent need for it
ing fallen from $2,341,519,000 to $2,297,397,000. To- can be
asserted in the condition or situation of the
tal deposits of the twelve Reserve banks, made up Reserve
banks themselves. This being so, the arbialmost entirely of the reserve credit of the member trary
exercise or assumption of the power by the
banks,have declined even more largely, the total hav- Reserve
authorities is fraught with the greatest and
ing fallen from $2,398,952,000 to $2,340,900,000, the gravest
menace, and is to be most earnestly depreadditional loss following chiefly as the result of cated.
the drawing down of Government deposits from
The Federal Reserve Board has also again given
$26,887,000 to $7,337,000. To make up for the loss out the
figures of brokers' loans for the member
in deposits the amount of Federal Reserve notes in banks in
the New York Federal Reserve District.
actual circulation has been increased from $1,702,- These
figures are now made public on Thursday eve693,000 to $1,751,050,000. At the same time gold ning, simultaneou
sly with the weekly statements of
reserves of the twelve Reserve banks have fallen off the Reserve
banks themselves, and for the same
during the week from $3,020,510,000 to $2,988,- week, instead
of being held until the following Mon109,000.
day, when complete detailed statements of all the
138
THE CHRONICLE
reporting member banks of the System have been
compiled. The departure is in every way to be cammended and it is obviously a step in the right direction. The only comment to be made on this week's
figures of brokers' loans is that they show these
brokers' loans still to be of huge magnitude, and
close to the highest amount on record. The past
week these brokers' loans further increased from
$3,117,920,000 to $3,126,327,000. At the corresponding date last year the amount was $2,602,788,000. It
is sometimes urged that the recent great expansion
in these loans reflects borrowing by syndicates
which have been unable to dispose of large new
bond issues.
Quite a good many of these syndicates have been
dissolved within the last two weeks and the undistributed portions of the issues allowed to find a
market. Such borrowing, however, in any event
would be on time loans, since borrowing on call
would be altogether too risky. If, now, we compare
with a year ago, that is, if we compare the $3,126,327,000 of brokers' loans for the present week with
the $2,602,788,000 in the corresponding week of last
year we find that the portion of these loans (to
brokers and dealers) represented by time loans has
increased only from $662,719,000 to $748,550,000,
while the portion represented by demand loans has
run up from $1,940,069,000 to 2,377,777,000.
The Stock Exchange loan figures of borrowing by
members of the Exchange have also made their appearance the present week. The Stock Exchange
compilations are issued only monthly and the present figures are for the close of June. They tell the
same story as the returns of the Federal Reserve
Board. During the month of June the grand total
of these loans, which are described as "net loans by
New York Stock Exchange members on collateral,
contracted for and carried in New 'York," was further increased from $3,457,869,029 to $3,568,966,843.
At this latter figure the amount exceeds that of any
previous date since the system of monthly compilations was inaugurated. It compares with $2,926,298,345 on June 30 of last year. Here, again, we
find the same disparity in growth as between time
loans and demand loans, to which attention has already been directed in the case of the figures of the
Federal Reserve banks. The time loan portion of the
loans has increased only from $700,844,512 to $811,998,250, while the demand loan portion has risen
from $2,225,453,833 to $2,756,968,593. If we compare with the previous peak in this case, reached on
Feb. 27 last year, we find that the time loans now at
1811,998,250 are actually $228,000,000 less than they
were at that time, the amount then having been
41,040,744,057, while the demand loans have expanded from $2,494,846,264 to $2,756,968,593.
There can be no doubt that these brokers' loans
have again attained undue proportions and the Federal Reserve Board woud be better advised if it undertook to find a corrective for this situation rather
than entering upon grandiose plans for regulating
the finances and controlling the gold situation of
Europe and the world.
Such a study of the situation appears all the more
incumbent when one considers the evidences of
strain, which the New York Clearing House institutions are showing. In their return for last Saturday the New York Clearing House banks and trust
companies again showed a deficiency below the re
[VoL. 125.
quired legal reserves. This is the fifth successive
Saturday that such impairment of the reserve position has appeared and no parallel to it can be found
unless one goes back 20 years to 1907, at which time,
as the reader will recall, a state of panic prevailed.
The deficit lust Saturday was $2,588,920, on June 25
it was ;6,657,830; on June 18 $13,887,140; on June
11 $26,419,380 and on June 4 $3,511,080. Of course
the impairment can be easily corrected by borrowing at the Federal Reserve banks, but the fact that
such borrowing is necessary is itself the strongest
evidence of the existence of the strain. If it were
not that ready recourse to the facilities of the Federal Reserve banks exists, we may be sure that the
strain would never have been allowed to develop.
All the different items of the Clearing House return last Saturday reflected the special 1st of July
requirements incident to the very heavy July interest
and dividend disbursements and the equally heavy
half-yearly settlements. The loan item increased
no less than $161,570,000 and this brought with it
an increase of $247,445,000 in net demand deposits,
though time deposits decreased slightly, namely
$3,064,000. Both deposits and loans were at the
highest figures of the year. This large expansion in
liabilities added, of course, to the reserve requirements and thus it happens that, though the member
banks of the Federal Reserve increased their reserves with that institution in amount of no. less
than $35,945,000 (largely through increased borrowing from the Reserve banks, though in part also
by the drawing down of cash in own vaults in amount
of $2,735,000) the added reserve was insufficient to
wipe out entirely the deficiency in reserves. It is to
be hoped that impaired reserves will not be allowed
to become a chronic condition by our Clearing House
institutions.
The June collapse on the Stock Exchange reached
its culmination on Wednesday and Thursday of last
week, the two closing days of the month. Beginning on Friday a very vigorous rally developed,
which ran unabated through Wednesday of the
present week, with a pause on Thursday without
ant particular trend. The bond average, which
reached a low for the present movement of 96.80 on
Tuesday, June 28, has since recovered and is now
approaching 97, this figure comparing with a recent high of 97.78 on May 10. The railroad average,
which reached a low of 133.36 on both Monday and
Tuesday of last week, recovered more than three
points by the close on Wednesday of the present
week; the industrial average, which reached a low of
166.40 on Tuesday of last week, had recovered nearly
six points to 172.27 by the close on Wednesday, comparing with a high of 172.96 on May 31 and being an
absolute high in all time, if allowance be made for
the 2.49 points which the average dropped on June 1,
when United States Steel common went ex 40%
stock dividend.
When some two or three weeks ago it appeared
that there were a number of large unsold new bond
issues, attention centred upon the $60,000,000 issue
of the Goodyear Tire & Rubber Co. first mortgage
and collateral 5s, 1957, which had been offered by a
Dillon-Read syndicate on May 19 at 97, to yield
5.20%. When, therefore, the bond syndicates concerned began to "pull the plug" with an accompanying decline in bond prices and a heavy reaction
JULY 91927.)
THE CHRONICLE
13g
in the stock market, attention again centred on this made as the week opened that the Conference might
Goodyear issue, and it appears probable that the be wrecked on this delicate and difficult question. Ofshort interest counted upon a heavy decline in Good- ficial exchanges between the American, British and.
year bonds to help them in their maneuvers. The Japanese delegations were not resumed until
Goodyear syndicate was dissolved on Saturday of Wednesday, but the machinery of "press confer-last week and there was without much question con- ences," liberally employed by all delegations, was
siderable short selling of these bonds, as evidenced set in motion earlier. Secret meetings of the techby the fact that on the Stock Exchange the current nicians at the Conference also were hinted at in
quotations for immediate delivery have been some press dispatches. Rumors that the British demands
four points above those for delayed delivery. The for 600,000 tons in cruisers would be pared down
price, however, did not drop as expected, declining were confirmed by Mr. W.C. Bridgeman, First Lord
only to 92, and subsequently recovering fractionally. of the Admiralty, in a press conference Tuesday.
The event proved, no doubt, a great disappointment He produced figures indicating that the new minito the bear party. At any rate, the dissolution of mum demand would be about 470,000 tons, divided
this syndicate was attended by a most vigorous rally' into 71 ships. Of these 60 actually are in commisin the stock market and a very material strengthen- sion, althogh some, Mr. Bridgeman said, are due for
ing in bond averages. It is becoming evident that replacement. Nine exist only in the form of blue
the bond indigestion, although quite extensive, was prints. A report of this meeting, cabled to the New
not as acute as at first supposed. The situation is York "Times," said further: "He then offered a
being cleaned up rapidly, not only by the dissolution new argument for preferential cruiser strength along
of syndicates but by the withholding of new offer- with the oft-repeated contention as to the necessity
ings, these having been very light now for tivo weeks. to guarantee Britain's food supply and the protecA feature bearing upon the situation which should tion of her 'far-flung trade routes.' The new argunot be overlooked is that we are in a discriminating ment cited the German cruiser'Emden'in the World
market, with the shares of the more progressive com- War, which caused so much damage to the British
panies and the healthy industries making advances, merchant marine that 29 cruisers at one period opsimultaneously with declines in the shares of com- erated simultaneously trying to track her down, and
panies less blessed with good management or favor- in all 70 cruisers were needed before the German
able conditions in the industry. Students of values raider finally was disposed of. Mr. Bridgeman adare concentrating their attention upon the indi- mitted that Great Britain's fears of future'Emdens'
vidual situations and general developments which 'make my position difficult' in endeavoring to harare not necessarily cyclical.
monize the divergent viewpoints of the British and
The recent action of General Electric has • at- American delegations. He then stressed the argutracted a great deal of attention. For some time ment that the British type of cruisers of 7,500 tons
there had been a cash dividend of $3 with an extra constitutes merely a defensive arm. He said: 'We
of $1 payable in special stock, giving a market value ask for a number of small ships not heavily armed
to the dividend of about $4.15. Recently the rate rather than the larger ones designed for aggression.'
was changed to $4 and an extra of $1 cash paid, in- The First Lord of the Admiralty insisted that proof
dicating the present annual rate to be $5, all pay- that Great Britain had not started a new armament
able in cash. Such action on the part of a conserva- race came in figures showing that after the war
tive company like the General Electric undoubtedly until 1923 Britain built but eleven war craft of all
is an encouraging circumstance. The stock which types, against 300 constructed by the four other nafor s many months had sold between 80 and 90, has val Powers. He closed the interview, saying:'Many
recently advanced to above 115. In so doing the folks think that we still have aggressive intentions.
stock has moved upward from approximately a Once more I try to counteract such an impression."'
4.90% to a 4.40% basis, the advance reflecting not
It was ascertained at the same time that the origonly the increase in dividend, but something more. inal American plan for a limit of 300,000 tons in
This may be found in the company's new electrical cruisers would be abandoned and an effort made to
refrigerating apparatus, which appears to be an meet British needs in this class. The United States,
article of merit and likely to prove such when spon- an Associated Press dispatch said, "practically told
sored by such a company, or it may be due to other the naval delegates that it would go to the extreme
approaching developments not yet disclosed. On maximum limit of 400,000 tons, but strongly indithe other hand, the advance may be due simply to an cated simultaneously that it would exert continued
increasing appreciation of stocks of this kind. The effort to put limitation well under 400,000 tons."
investing public appraises General Electric as an Commenting further on this development, the disinvestment of the most substantial value, ample cap- patch added: "Apparently the Americans have no
ital, brilliant management, thorough-going organi- objection to Great Britain possessing as many as 75
zation, and one of the greatest research organiza- cruisers, but want some definite understanding that
tions in the world, with practically every advan- the tonnage of a considerable number of these will
tage that a corporation can command. It is worthy be low enough to prevent the total British cruiser
of note that the yield of this stock is as low as that tonnage from exceeding 400,000 as the very last
of the very highest grade bonds. Investors evidently limit. This new limit would permit Britain to build
consider the dividends as assured as the most secure two new 10,000-ton cruisers, while adhering to the
interest, with the added advantage of prospects of present distribution of cruiser tonnage." Moreover,
growth in value.
it appeared that an agreement had practically been
reached by the experts concerning maximum tonEfforts to reach a working agreement on cruiser nage for destroyers and submarines and upon the
limitation occupied the Tripartite Naval Conference rough figures for total tonnage.
at Geneva the past week. Predictions were freely
140
TH:E CHRONICLE
The Japanese delegation at Geneva suddenly intervened in the Anglo-American difficulty over
cruiser tonnage Wednesday evening and again
changed completely the aspect of the meeting. At
a formal tea arranged for the occasion Admiral Saito
informed the delegates that Japan intended to adhere to the original maximum figure of 250,000 tons
proposed by the United States. He was said to have
declared in effect that "it might be impossible for
us to go home with a treaty agreeing to such cruiser
figures as the British have submitted." The British
were described as "seemingly stunned" by Admiral
Saito's statement, whereas Ambassador Hugh S. Gibson, head of the American delegation, told correspondents afterwards that he felt more hopeful than
for some days. An Associated Press dispatch of
Wednesday, after reporting the occurrence, added:
"If a faithful account of the Geneva negotiations is
ever written, some students of the situation feel, it
will reveal to the world that a great Anglo-American
tragedy has been enacted. The thread of the play,
judged from reliable accounts, is this—that Great
Britain, which has held the mastery of the seas for
centuries, intends to maintain this mastery and can
see neither justice nor wisdom in a youthful nation
across the seas, the United States, wishing to lay
down fleets equaling those of Great Britain."
A further session of the Executive Committee of
the Conference was called to meet Friday at the request of the British delegation. When called Thursday this meeting was looked upon in Geneva as probably determining the fate of the Conference. Meanwhile, a dispatch to the New York "Times" indicated, the Americans proposed a final cruiser compromise with the British as follows: "For each of
the two nations eighteen boats of 10,000 tons. Great
Britain already has this number. The United States
has eight authorized and would have to build ten
more. This tonnage would total 180,000. The Americans also agree that each of the two nations may
have 220,000 tons more, making a total of 400,000
tons. For 220,000 tons of this each nation would be
unrestricted in building cruisers from 7,500 tons
down. If Great Britain agrees and Japan finally
abandons her'minimum demands,it is intimated that
the United States, in addition to the ten cruisers of
7,500 tons which she now has, would build twenty
of this same tonnage. Thus the United States would
have a total of forty-eight cruisers. The American
delegation insists that all of them, both those of
7,500 and those of 10,000 tons, be mounted with eight
instead of six-inch guns. The American experts figure that designs for the new 7,500-ton boats would
permit them to carry eight guns of eight-inch calibre,
while the 10,000-ton boats would carry ten-inch guns.
Great Britain has not yet indicated whether she intends to accept such a total."
The likelihood of agreement at the Conference was
made still more dubious Thursday by new Japanese
demands on submarines. The American delegation
proposed to the Conference that submarine tonnage
for the United States and Great Britain be fixed at
from 60,000 to 90,000 tons and that for Japan at
from 36,000 to 54,000. Admiral Saito served notice
Thursday that be wants 70,000 tons of submarines
for his country because of the long stretches of
Japan's island.empire and the necessity of defending
the coast against possible invading warships. The
indications were, dispatches said, that Admiral
[VOL. 125.
Saito will stick tenaciously to his demands, as Japan
tentatively possesses 78 submarines of a total tonnage of 79,000, these figures including twelve in the
process of construction and seven for which appropriations have been made. Against the American
suggestion for an outer limit of 90,000 tons in submarines it was revealed early .in the week that
France, not formally represented at the Conference,
has a program for 115,000 tons in these vessels.
What effect this will have on the Conference was a
matter of speculation.
British dissatisfaction with the course taken by
the Conference again became distinctly evident yesterday. Mr. W. C. Bridgeman issued a statement
to the press in the afternoon in which he indicated
that the crisis "is far from healed and not only continues, but has become more acute." Reverting again
to the British desire for further limitation of capital ships and reduction in the size of cruisers from
10,000 to 7,500 tons, Mr. Bridgeman declared it was
impossible to arrive at a low total tonnage if the
maximum tonnage in each type of warship was to
be pushed up into types that become aggressive
weapons. The British proposals were based entirely
on a desire to give Great Britain proper security,
the First Lord said, adding: "The more that is
understood, the more will be the hope of getting an
agreement." In contrast to the lugubrious attitude
of the British Lord of the Admiralty, Mr. Gibson,
chief American delegate, laughed away reports that
the Conference was about to break up. "Everybody
is showing a real disposition to get together," he
said.
The spectre of war with Britain will not down in
Soviet Russia. "Defense week" began in the Russian capital last Monday with the official organs of
the Soviet declaring that "Russia's imperialist enemies are really preparing an onslaught upon our
workers, peasants and fatherland." As to the incentive for the feverish activities, Mr. Walter Duranty, Moscow correspondent of the New York
"Times," ventures the following: "That the Soviet
wants war is unthinkable to anyone familiar with
the economic situation of Russia and the intense concentration of the ruling Communist class upon "the
problem of Socialist construction,' which the official
party resolutions state to be the keystone of their
internal policy. The only other answer is that the
Soviet believes war to be inevitable—unless, as Premier Rykof and War Minister Voroshilof emphasized to the War College graduates yesterday, 'our
probable enemies, brought to realize that the Red
Army, backed 100% by the worker and peasant
masses, is fully alive to the danger and fully prepared to meet it, shall shrink at the last moment
from odds too formidable to tackle.'" The explanation of the Soviet obsession with the idea of war can
only be found, the dispatch added, in Marxist doctrine. Wars, according to the famous Socialist, do
not proceed from sentimental, religious or dynastic
reasons, but solely from economic causes. This is
the basis for the Marxian "economic interpretation
of history," to which the Soviet leaders subscribe unreservedly. These leaders assert, accordingly, that
the economic interests of the British Empire are
gravely, if not fatally, menaced by the development
of Soviet Russia—this, whether the majority of the
British public or the rest of the world are aware of
JULY 9 1927.]
THE CHRONICLE
it or not. Therefore, the argument runs, whether
the British want it or not, war sooner or later, in
one form or another, is inevitable between Great
Britain and Soviet Russia. To think anything else
would be blasphemy against the gospel according to
Marx. The outer world naturally does not share the
Soviet belief in the infallibility of the Marxist
dogma, but, in Mr. Duranty's opinion, that hardly
diminishes the danger. "Europe already saw in 1914
and the years immediately preceding what is meant
by 'preparedness' and the filling up drop by drop of
the 'vials of wrath' until finally they brimmed over.
Now, when you have a country of 150,000,000 people,
comprising one-sixth of the earth's surface, committed wholesale to this dreadful business, it requires a
fundamental optimist to believe that the rest of
Europe is sufficiently healthy and pacifist to resist
the contagion."
A gradual but steady advance on Peking by the
forces of the Southern Chinese Nationalists is reported in dispatches from Shanghai. Railway service in the neighborhood of Tsinan-fu, capital of
Shantung Province, was reported disrupted July 5,
while Japanese advices said that many of the Northern troops went over to the Nationalists. Such defections added little territory to the Nationalist advance, but it was pointed out that they further paved
the way for the execution of the far-flung Southern
campaign, "which without doubt is progressing
steadily." Official circles at Nanking, headquarters
of the moderate Nationalist regime, were said to
have revealed that the first objective of the Southerners will be the expulsion of the Northerners from
the entire area south of the Yellow River, from the
City of Kaifeng in the province of Honan, to the
sea.
One column of the Nationalists is known to be
advancing on Tsing-tao, formerly German leased
territory and latterly the centre of the Japanese
sphere of influence in Shantung Province. Fifteen
American naval vessels are in the harbor, ready to
take off all foreign nationals in case of necessity.
Some Japanese vessels also are there, with a British man-of-war expected momentarily. The Northern garrison of 5,000 was dispatched southward to
meet the advance, Peking being understood to have
ordered the defense of Tsing-tao against the Nationalists. Japanese sailors were reported Thursday to
be landing supplies and munitions, though no defense works were begun. This was contrary to the
promise of the Japanese consul, and in consequence
the Chinese made still more rigorous the boycott now
in effect against everything Japanese.
Two interesting developments which shed no little
light on the Chinese situation occurred in Europe
in the past week. Firstly, it was admitted officially by the Communist leaders in Moscow that the
Chinese revolution is in imminent danger of collapse. This has reference, of course, only to the
radical Hankow regime and seems to indicate the
elimination of Soviet influence in the Nationalist
movement. Secondly, Dr. Chao Hain Chu, the Chinese delegate to the Council of the League of Nations, issued a statement in Geneva designed to
counteract reports of bargaining with reference to
China by the British and Japanese. The significant
point in this was that Dr. Chu, who represents the
Peking Government, spoke officially in the name of
the Nationalist Government, thus giving indication,
141
dispatches said, "that for him the Peking Government is no longer an important factor in the Chinese
situation."
Efforts to break down European tariff walls apparently have little practical effect. Reduction of
tariffs was held of prime importance for the economic recovery of Europe in the recent Economic
Conference in Geneva and again last week it was the
central point around which the International Chamber of Commerce Congress, which met at Stockholm,
revolved. Opinion on the advisability of the step is
well-nigh unanimous. Apparently only the practical
politicians of the various European States dissent
from the general chorus, as, with all the talking and
urging, European tariffs continue somehow to rise
to higher levels. Plans for drastic increases in the
French tariff are being pushed unhesitatingly despite all the resolving, and now Germany, officially
an advocate of lower tariffs, will also put some advances into effect. The present German tariff, the
highest and most far-reaching that Germany ever
has had, was framed in August 1925, effective for
two years. A Berlin dispatch of July 4 to the New
York "Times" said that the Marx Cabinet has now
introduced a bill into the Reichstag for the prolongation of the tariff law for two more years, making it
effective until Jan. 1 1930. Instead of breaking
down the customs walls, the German Government
"appears to find it necessary to do a bit more building in several sections in order to keep out foreign
competition." The bill proposes that the duty on
sugar be increased 50% and that on potatoes 100%.
This move on the part of the Nationalists is meant,
it is said, to furnish protection to farmers from
losses and to promote the intensive cultivation of the
home acreage. An interesting commentary on the
German tariff is furnished by the increase in customs revenues from 590,000,000 marks,to 940,000,000 marks since 1925.
Inspection by Allied military experts of the eastern fortifications in Germany, razed in accordance
with the decision of the Ambassadors' Council, is to
begin this week-end. Such inspection has long been
urged by Allied diplomats, but Germany has hitherto avoided the point, insisting that concessions be
made to her in turn. A Berlin dispatch of July 4 to
the New York "Times" now advises that arrangements for the inspection have been completed,
French and Belgian military attaches in the German
capital having received instructions from their Governments to accept the invitation of General von
Pawelsz for a tour of the destroyed fortifications.
It is estimated that three weeks will be required to
view the thirty-eight emplacements ordered razed.
"German officials express confidence," the dispatch
added,"that the experts will find everything to their
satisfaction and that when the trip is ended the entire question of eastern armaments will be settled
permanently. There is surprhe expressed here that
three weeks should be necessary to view these points,
but the Government is determined to allow the Allies
to satisfy themselves to the fullest rather than have
the accusation brought up that all facilities for the
investigations were not freely given."
The threat to the peace between Jugoslavia and
Albania, which caused grave concern to all European
Powers because of its implications, was removed
142
THE CHRONICLE
late last week. The occasion of the difficulties was
the arrest by the Albanian authorities a month age
of a Jugoslavian Legation attache on charges of
espionage. Belgrade promptly demanded his release, but the demand was refused by Albania, which
subsequently offered to submit the matter to the
League of Nations. Relations between the two countries were then severed by Jugoslavia. Italy, closely
allied with Albania since the Treaty of Tirana,
signed last November and which gave her practical
control of Albanian affairs, was recognized as directing the moves of that country. Jugoslavia, on
the other hand, is allied to France, and a serious
threat to European peace was thus thought to be
involved. The incident was settled July 3 with the
release of the Jugoslavian Legation attache. Diplomatic pressure was brought to bear by the big Powers, Jugoslavia being induced to send a fresh note to
Albania expressing regret for certain offensive
phrases contained in her original communication
severing diplomatic intercourse. The note was presented at Tirana by M. de Veaux, the French Minister charged with the protection of Jugoslavian interests in Albania. Italy, it was said, joined with
France, Great Britain and Germany in insisting on
the release of the alleged spy.
The proposal of the Conservative Government of
Premier Baldwin to reform the British House of
Lords definitely passed off the stage the past week.
The project was hastily dropped on June 28, when
serious opposition developed within the Conservative ranks. The Labor Party, as the official Opposition, brought heavy pressure to bear against the
measure, the Liberals also joining in the hue and
cry. The measure would have given the Lords power
over financial and constitutional matters, thus taking some of its prerogatives from the Commons. Not
content with the quick defeat of the project, the
Labor Party early this week introduced a motion of
censure on the Government. The motion came to a
vote Wednesday and went down by a vote of 362 to
167, the Conservatives closing their ranks to defend
the Ministry even though they were divided on the
measure itself.
Ramsay MacDonald, leader of the Labor Party
and former Premier, led the attack on the Government in his first appearance in the Commons since
his recent illness in this country. He moved a resolution which declared that it would be an outrage on
the Constitution if the Government's proposals, as
outlined in the House of Lords, were forced through
a Parliament without such a mandate from the people. He condemned the Government's tactics in
making the project known in the House of Lords instead of in the Commons, which he said had induced
revolt and unrest among many of the Government's
supporters and had brought down on the heads of
the Ministers this vote of censure. If the Government's proposals were put in operation elections
would no longer matter, he declared, since a handful
of hereditary peers would be able to dismiss Governments just as Kings used to do. Premier Baldwin
in replying agreed that no second chamber should be
able to overthrow Governments or rival the popular
Chamber's rights over finance. He declared again
that the Government's present proposals were offered only for criticism and ventilation inside and
outside the Commons. He added that in the light of
what might be learned from this debate, of what they
(VOL. 125.
had learned from the debate in the House of Lords
and of what they had learned from friends in the
country, the Government hoped to be able to produce
that greatest Commons measure in a form practicable for legislation. "If we fail," he concluded,
"I doubt very much whether further attempts will
be made in the near future."
The financial difficulties in Japan continue to
cause acute embarrassment to the Government of
Premier Tanaka. A scheme is earnestly sought by
the Premier and his Cabinet for the rehabilitation
of the Kawasaki dockyard and its Siamese twin, the
Fifteenth Bank. The matter is politically important, according to a Tokio dispatch of July 5 to the
New York "Times," because of the fact that nearly
all the peers are depositors in the Fifteenth Bank
and will lose heavily if it fails to reopen. It can
only reopen if its huge loans to Kawasaki are revivified with Government aid. The dockyard, it ap•
pears, could continue business if it obtained a loan
of 30,000,000 yen. Its obligations to the Fifteenth
Bank, totaling 70,000,000 yen, would then become
valid security upon which the Fifteenth Bank would
Obtain advances from the Bank of Japan from the
credits voted by the Diet during the moratorium for
bank relief. Public criticism, meanwhile, has been
raised against the plan for advancing public money
to a company which made enormous profits during
the boom and neglected to build up reserves. During one war year Kawasaki distributed 200% and
during the last several years, while losing heavily
and running on borrowed money, it still distributed
a regular 10% dividend annually. The Government
thus finds itself in a quandary. If it fails to relieve
Kawasaki, the Fifteenth Bank probably will not reopen and the peers will lose heavily. The Government cannot afford to offend the entire Upper House,
yet its own supporters include big firms which have
secured themselves against the slump by husbanding
their resources and they naturally object to being
taxed for the benefit of an improvident rival. Nor
can the Government risk calling a special session
for a proposal which the entire press denounces. It
was said Tuesday that Premier Tanaka had decided
to leave the bank and dockyard to their fate, but the
Cabinet, which discussed the question on that day,
again postponed its decision.
Wholesale deportations of political leaders from
Chile, which began with the military dictatorship
established by General 'Carlos Ibanez, are continuing. A rigid censorship is in effect in that country,
news of the deportations being conveyed by travelers
to Argentina. Among those said to have left the
country are Enrique Matte-Figueroa, nephew of former President Figueroa,.who resigned to make place
for General Ibanez, and Eliodoro Yanez, who sponsored the coming international press conference to
be held in Geneva. Some deportations, however,
were revoked by the Government upon pressure from
members of the Senate and Chamber of Deputies,
who protested at the turn events have taken and
criticized the restriction of freedom imposed by the
Government. Travelers reaching Mendoza, Argentina, assert that the streets of Santiago, the Chilean
capital, are patrolled by armed carabineers, though
no explanation is forthcoming as to the reason for
this extraordinary measure. An Associated Press
dispatch of July 3 from Mendoza adds that the gen-
JULY 9 1927.]
THE CHRONICLE
eral situation in Chile appears tranquil on the surface, but "there is no question of the acuteness of
conditions." The deportations began March 8, when
General Ibanez announced his intention of ridding
the country of the "Bolshevist menace." Many persons of prominence in Chilean political affairs were
promptly dispatched to Mas-a-Fuero, a small island
500 miles from the mainland, while others who were
named fled northward to Peru. President Figueroa
asked for a two weeks' leave of absence from the
country and later resigned, whereupon General Ibanez convoked new elections in which he was the sole
candidate.
143
aggregates £138,257,000, as against £142,217,610 last
year and £145,205,750 in 1925. The Bank's official
1
2%. Below
discount rate remains unchanged at 4/
we furnish comparisons of the various items in the
Bank of England return for a period of five years:
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1924.
1925.
1923.
1926.
1927.
July 8.
July 9.
July 11.
July 7.
July 6.
6138,257,000 142,217,610 145,205,750 127,269,900 126,409,635
Circulation
9,928,000 11,597,431
19,206,000 16,498,498 11,250,201
Public deposits
104,376,000 105,595,110 118,652,498 110,875,468 107,981,759
Other deposits
Governm't securities 47,547,000 37,520,328 42,516,733 48,057,467 46,838,731
61,489,000 74.559,756 71.992,302 69,950.129 69,702,107
Other securltles
Reserve notes gt coin 32,666,000 28,053,350 33,405,986 20,749,417 20,963,059
Coln and bullion--a151,074,446 150,520,960 158,861,736 128,269,317 127,622,694
Proportion of reserve
1731%
25%
.%
173i%
23.26%
26.34%
to liabilities
4%
4%
5%
5%
Bank rate
434%
a Includes, beginning with April 29 1925, £27,000,000 gold coin and bullion
previously held as security for currency note issues and which was transferred to
the Bank of England on the British Government's decision to return to gold standard
b Beginning with the statement for April 1925, includes £27,000,000 of Bank
of England notes issued in return for the same amount of gold coin and bullion
held up to that time in redemption account of currency note issue.
The change of Ministers in Rumania has brought
in its wake serious charges of financial malfeasance
against former Premier Averescu. About 12,000,000,000 lei were disbursed by the Government of
M. Averescu on his last day in office, and the former
The Bank of France's weekly statement as of
Premier is accused by his political enemies and most
expansion in note cirof the newspapers of having emptied the Treasury July 6 showed the further large
(probably by reafrancs
1,063,782,000
for the benefit of his colleagues. Most of the money, culation of
the total of which
need),
trade
half-yearly
it was said, could not be traced. One of the last or- son of the
year ago note cirOne
francs.
53,950,549,780
is
now
ders of M. Averescu's Cabinet Council was for the
54,861,927,090 francs and in 1925
at
stood
culation
payment of salaries for 1928 to all Ministers and
repaid 200,000,members of Parliament. The former Premier denies at 44,493,751,250 francs. The State
reducing
its
total indebtedBank,
the
francs
to
,000
in his own newspaper, "Visotome," that any discompares
with
which
francs,
26,650,000,000
ness
to
honesty was shown by himself or his Government in
and
27,400,000,000
1926
in
francs
37,700,000,000
making the disbursements. Most of the money, he
declares, was spent by the Ministry of the Interior francs the year before. Gold holdings in the various
for special war munitions and equipment urgently categories, namely in vault, abroad available and
needpd by the Rumanian army. Other large sums, abroad non-available, remain unchanged. The grand
he says, were used to pay accounts accumulated by total of gold still stands at 5,546,828,343 francs,
his Government, which he undertook to clear up be- against 5,548,632,708 francs in 1926 and 5,546,771,fore it left office. National elections were begun 991 francs the previous year. Bills discounted dein Rumania Wednesday with the Liberal Party of spite the gain in note circulation decreased 1,063,Premier Bratiano most prominent in the field. The 782,000 francs. Treasury deposits increased 135,party of General Averescu has only a few candidates 292,000 francs, trade advances 68,495,000 francs,
in the field and there seems little chance of their while general deposits fell off 475,618,000 francs.
being elected, according to a special dispatch to the Silver remained unchanged. Purchases of gold and
New York "Times." The Liberal Party is expected silver coins to July 6 under the law of Aug. 10 1926
total 2,186,149,661 francs, against 2,180,849,661
to overwhelm the other parties.
francs to June 29. Comparisons of the various
No change occurred this week in official discount items in the Bank of France statement for three
rates at leading European centres, which remain at years are as follows:
BANK OF FRANCE'S COMPARATIVE STATEMENT.
7% in Italy;6% in Berlin and Austria;
in Paris,
Status as of
Changes
Belgium, Denmark and Madrid; 4/
1
2% in London
July 8 1925.
July 7 1926.
July 6 1927.
for Week.
Francs,
Francs.
Francs.
Gold
Holdings—Francs.
and Norway; 4% in Sweden, and 3/
1
2% in Holland
3,682,507,441 3,684,311,801 3,682,451,084
In France
Unchanged
and Switzerland. In London open market discounts Abroad—Available Unchanged
462,771,4781 1,864,320,907 1,864,320,907
1,401,549,4251
Unchanged
4@4 5-16% for short bills and Non-available
closed yesterday at 41/
5,546,828,343 5,548,632,708 5,546,771,991
Unchanged
4 5-16@4%% for three months' bills, both the same Total
311,416,141
337,572,820
344,544,015
Silver
Unchanged
as on Friday of last week. Money on call in London Bills discounted—Dec. 1063782000 1,429,905,464 4,869,768.211 3,346,228,281
advances__ _Inc. 68,495,000 1,670,692,498 2,366,160,201 3,057,164,185
4%, against 23
was quoted yesterday at 31/
/
4% on Trade
Note circulation Inc. 1164164000 53,950,549,780 54,861,927,090 44,493,751,250
14,098,183
38,487,526
Treasury
145,445,129
deposits_Inc. 135,292,000
Friday of last week. At Paris open market discount
General deposits Dec.475,618,000 11,896,236,380 3,342,225,470 2,473,875,313
and
in
4%,
rates continue at 21/
Switzerland at 3/
1
2%. Advances to State_Dec.200,000,000 26,650,000,000 37,700,000,000 27,400,000,000
The Bank of England's gold holdings suffered a
decrease of £1,043,455 for the week ended July 6.
The gold reserve total now stands at £151,074,446, in
comparison with £150,520,960 a year ago and £158,861,736 in 1925. The proportion of the Bank's reserve to liabilities declined to 26.36% from last
week's percentage of 26.71%. Two weeks ago it was
30.71%. •Notes in circulation expanded £281,000
and reserve of gold and notes in banking department
decreased £1,325,000. A contraction of £4,119,000
was noted in loans on Government securities, but
loans on "other" securities increased, £2,183,000.
Public deposits rose £11,330,000, while "other" deposits fell off £14,656,000. Note circulation now
The Bank of Germany in its return for the week
ended June 30 reported an increase of 595,894,000
marks in note circulation. Such increase is customary
at the end of the month to meet trade requirements.
Other liabilities expanded 13,147900 marks, but
other daily maturing obligations declined 100,015,000 marks. Total note circulation now amounts to
3,815,209,000 marks, as against 2,971,153,000 marks
in 1926 and 2,474,416,000 marks the previous year.
The asset items of the Bank mainly registered reductions. Gold and bullion fell off 276,000 marks, reserves in foreign currencies 3,296,000 marks, silver
and other coin, 13,762,000 marks, notes on other
German banks, 14,998,000 marks, investments 136,-
THE CHRONICLE
144
000 marks and other assets 61,056,000 marks. However, bills of exchange and checks increased 477,233,000 marks and advances 125,298,000 marks. Deposits abroad remained unchanged. Gold holdings
are now 1,802,569,000 marks. Last year they were
1,491,234,000 marks,and in 1925 1,061,717,000 marks.
Below we give a detailed comparative statement of
the various items for a period of three years:
4gICIISBAN4'S
GOMPARATIVE STATEMENT.
Change;for
Wee,
;WY 6 1927. r/140/ 7 1926. July 8 1925.
letchanzarks, fletchseaarks. Rekhamarks.
fletchrmarks.
Asseig-Gold and bullion
276,000 1,802,569,000 1,491,234,000 1,061,717,000
Dec.
99.908,000
57,876,000 260,435,000
Unchanged
Of which depos.abr'd_
66,992,000 324.827,000 353,905,000
Res've in for'n cum Dee. 3,296,000
Bills of exch.& cheaks.Inc. 477,933,000 2,494.644,000 9,988,208.000 1,691,467,000
67,347,000
94.850,000 107,546,000
Silver and other coin _ _Dec. 13,762,000
10,613,000
12,399,000
8,650,000
Notes on Oh,Ger. bitsPeo. 14,998.000
46,453,000
Advances
Inc, 125,298,000 146,093,000 143,277,000
89,498,000 901.315,000
92,993,000
Dec.
136,000
Investments
Dec. 61,056,000 481,793,000 591,896.000 639.327,000
Other assets
Liabilities—
Notes in circulation Ine. 595,894,900 3.818,209,000 2,971,153.000 2,474,416,000
Oth.dally matur.oblignee. 100,015,000 669,518,000 526.926,000 564,446,000
Inc. 13,128,000 819,196,000 119,877,000 724,116,000
Other liabilities
[VOL. 125.
market also was easier, but only for the shorter
1
4%, the
maturities. The 30-day rate softened to 4/
60-day rate to 43
/
s(6414%,the 90-day rate to 41/2%,
while the quotation for four to six months remained
at 4/
1
2@45
/
8%. Commercial paper for four to six
months' names of choice character continues at 4@
4/
1
4%, with the inside figure available only in the
case of exceedingly choice paper. For names less
well known the range is 41/4(g41/2%, which is also
the quotation for New England mill paper. .
The market for banks' and bankers' acceptances
has been a little more active. For call loans against
bankers' acceptances the posted rate of the American Acceptance Council was reduced on Thursday
from 4% to 33
4% On Thursday also, the discount
rate on 90-day acceptances was lowered by 1/
8%.
The Acceptance Council now makes the discount
rate on prime bankers' acceptances eligible for purchase by the Federal Reserve banks Ws% bid and
35/2% asked for bills running 30 days;33
/
4% bid and
39/8% asked for 60 days and 90 days; 37/% bid and
/8%
33
/
4% asked for 120 days, and 4% bid and 37
asked for 150 and 180 days. Open market quotations have been similarly changed and are as follows;
spoT pEravgny.
DaAed, 7,110
Dalsks—z
Asked.
Bid,
hict°
An abundance of money was available to borrowers in the New York market the past week, This
was not unwected,as the unusually heavy mid-year
interest and dividend disbursements brought a flood
of funds to the banks. Gall money opened. at 414%
Tuesday, after the holiday Monday. This rate remained unchanged for the day at the Stock Exchange lending table, and the banks called about
$25,000,000 in loans. There was an overflow of Prime eligible bills— 4
37
4
39
374
3%
—90 Days— —60 Days— —30Days—
funds, however, to the outside or street market,
Agri.
Agd
Ar
id.
where trades were arranged at 4%. Stock Exchange Prime eligible bills-- it
FOR DELIVERY WITHIN THIRTY DAYS.
renewals Wednesday were again 41/
2%, but this was Eligible member
banks
Eligible non-rnembei hanks
ig gig
quickly shaded to 4% on new business, The plethora of funds continued and outside trades were
There have been no changes this week in Federal
done at 334%. The 4% rate for demand money Reserve Bank rates, The following is the schedule
continued on the Stock Exchange both on Thursday of rtes pow in effect for the various classes of paper
and Friday, but funds seeking employment forced at the different Reserve banks:
the outside rate to 31/2% on both days. The heavy DIACOUNT RATES OF FEDERAL RESERVE BANKS ON ALL
AND MATURITIES OF ELIGIBLE PAPER.
withdrawals Tuesday were taken as a matter of _ CLASSES
.
.. ........ ..
course, a fifth successive deficit iii reserves being
Rate in
Date
Previous
Federal Reserve Bank.
Effect on
Established.
Rate.
reported by the Clearing House banks. Time funds
July 8.
were quiet throughout the week and ruled un- Boston
4
Nov. 10 1925
31
New York
Aug. 13 1926
4
3
Philadelphia
changed at 41
/
2% to 4%%,
Nov. 20 1925
4
3
Cleveland
4
Nov. 17 1925
3
June 14 1924
The prevailing upward tendency of brokers' loans Richmond
4
4
I nta
4
June 18 1924
4
ttitcag
June 14 1924
4
against stock and bond collateral was again reas- St.
4
Louis
June 19 1924
4
Oct. 15 1924
4
serted in the statements issued the past week by the Minneapolis
Kansas City
July 11994
4
434
Dallas
Jul' 16 1924
4
New York Stock Exchange and by the Federal Re- Bap
Francisco
4
Nov.23 1925
3
serve Bank for New York reporting member banks.
As noted at the beginning of this article, the Stock
Sterling exchange has displayed weakness the
Exchange compilation, issued monthly, showed a present week, giving evidence of the approach of
rise of $111,09T,814 over the May total, carrying the grain and cotton bills, increased loans for foreign
amount to the highest figure ever recorded. The account in London, and continued withdrawals of
Reserve Bank statement showed an increase over gold. Fluctuations, however, have been encomthe previous week of $8,407,000, making the increase passed within a narrow range—say N. The trading
for the month in excess of $56,000,000. There is al, was tame on this side until Wednesday, owing to
ways some difference between the two sets of fig- the interruption of the Fourth of July holiday.
ures, as they do not cover precisely the same period. Toward the end of the week sixty and ninety-day
Neither are the data secured from corresponding cotton bills, as well as seven-day sight grain bills,
sources. Each compilation confirms the other, how- came into the market in unusually large quantities
ever, and the evidence of a constantly increasing for this time of the year, From now on, however,
amount of stocks and bonds held "on margin" nat, the volume of the
bills will steadily increase,
urally occasions apprehension.
probably reaching their maximum in September.
These unlooked-for offerings had, of course, an
Dealing more specifically with the changes from adverse effect PA the quotations for bankers' checks
day to day, Monday, being Independence Day, was, and cable transfers. Large offerings of sight bills
of course, a holiday. On Tuesday the renewal rate on Holland and sight grain bills on Germany helped
as well as all other loans were negotiated at 41/
2%, to augment the pressure on sterling, due chiefly to
On Wednesday the renewal rate was again 41
/
2%,but the fact that they had their origin in the same class
some new loans were put through at 4%. On Thurs- of competitive commercial transactions. Some
day and Friday all loans wore at 4%. The time loan bankers expressed the opinion that these commercial
lg
JULY 9 1927.]
THE CHRONICLE
bills were offered so largely at this time, a little
in advance of the season, mainly because foreign
traders interpret the conferences now taking place
here between the governors of the English, French,
German, and Belgian central banks and the Federal
Reserve authorities as a bullish factor for future
sterling. With this attitude, bankers say it is only
natural that a considerable number of foreign
exchange traders should revise their technical position
and realize now rather than risk a lower price
later in the season when British export payments reach maximum volume. Capital flotations in London, especially foreign loans, coupled
with the fact that London money rates have not
risen enough to bring in a sufficient volume of compensating short-term foreign funds, have increased
the pressure on sterling during the past few weeks.
As already noted above, the weekly statement on
Thursday of the Bank of England showed a decrease
in bullion of £1,043,455. On Tuesday the Bank of
England exported £10,000 in sovereigns to Holland,
and on Wednesday the Bank exported £9,000 in
sovereigns to India. At the Port of New York the
gold movement for the week ended July 6 consisted
of imports of $71,000 from Latin America and of
exports of $196,000 to Latin America. There was
no Canadian movement of gold either to or from the
United States. The New York Federal Reserve
Bank in its statement for the week ended July 6
showed a further reduction of $12,168,000 in gold
held abroad and ear-marked with the Bank of
England. This, together with reductions totaling
$36,499,000 in the past few weeks, reduces its origina
ear-marked gold purchased from the Bank of
France to $13,566,000. As previously stated with
respect to these transactions, this gold is believed to
have been resold to the Bank of France, although no
official statement has been made covering the point.
Canadian exchange continued at a slight discount
around 5-32 of 1% throughout the week, varying
only about 1-64 of 1% from day to day. The Fourth
of July holiday here and the celebration of Dominion
Week in the Canadian centres, both events responsible for a rather large suspension of business, account
for the dulness in Canadian exchange and perhaps for the narrow range. On Saturday last Montreal discount was 9-64 of 1%; on Tuesday again
5-32 of 1%,at which figure it remained for the rest of
the week. Late reports from Ottawa are of an optimistic character, showing large increases in the number of employed, the index number reaching a record
high of 105.9, which compares with 105.2 on Oct. 1
1926, the previous high mark for a period of seven
years. This compares with 101 on June 1 1926.
Practically all indexes of trade and manufactures, as
well as of construction, transportation, mining,
logging, and public services, show unusually large
seasonal advances, and these reports have a buoyant
effect on Canadian exchange.
Referring to day-to-day rates, sterling exchange on
Saturday last was weaker with light trading and a
quiet market of a holiday character. Demand bills
were steady at 4.85 3 16@4.853.. Cable transfers
were unchanged through the short session at 4.85 8,
compared with 4.85 11 16@4.85U a week ago On
Monday there was no market, owing to the Fourth
of July holiday. The post-holiday market on Tuesday developed little of interest in the way of rate
movement or volume of business. Demand was
steady at 4.853i, cable transfers 4.85%. Wednes-
145
day's market was characterized by greater activity,
especially in sixty and ninety-day commercial bills,
the vanguard of the grain and cotton consignments.
Under the weight of these offering bankers' demand
bills ruled at 4.85 3-16@4.85Vi. Cable transfers
ruled at 4.85 9-16. On Thursday the offerings of
cotton and grain and produce bills continued, and
quotations dropped to 4.85%@4.85 3-16 for checks,
and to 4.85 for cable transfers. Considerable more
cotton and grain bills were offered. On Friday the
range for demand was again 4.853/s@4.85 3-16, but
cable transfers closed at 4.85 9-16. Closing quotations yesterday were 4.85 3-16 for demand and
4.85 9-16 for cable transfers. Commercial sight bills
finished at 4.85A,sixty-day bills at 4.81 5-16; ninetyday bills at 4.795,.', documents for payment (sixty
days) at 4.813', and seven-day grain bills at 4.84%.
Cotton and grain for payment closed at 4.853'.
In the Continental exchanges the feature of the
week was a reversal of the previous week's bouyancy
in lire. The lira fell to a low of 5.42IA in Wednesday's
market. This compares with a closing price on
Friday of last week of 5.531
/, and with the year's
high of 5.843A, touched on June 25. Many foreign
exchange traders consider the drop in lire as a victory
for the Italian Finance Minister, Count Volpi, over
fore'gn exchange speculators. On June 2 Count
Volpi announced that the rise in lire had gone far
enough for the present, as the rapid recovery in lire
had not been counterbalanced by a corresponding
change in the cost of living. At this time it was
reiterated that the Government intended to maintain
the lira around 4.50. Acting on this avowed policy
the Italian National Institute for Exchange went in
and bought lire when the quotation was below 4.50
and sold when speculators sent the price up. It will
be recalled that on Sept. 1 last, following the announcement of the Government's plan for raising the
value of the lira, the quotation was around 3.75.
The Government's program, however, was announced
in such a way as to indicate the intention of effecting
a steady rise in value rather than a stabilization point.
This persistent feeling that a considerably higher
valuation would be established is largely responsible .for the heavy speculative trading. Count
Volpi has recently reversed his position and has announced that the currency will be kept at its present
value for an indefinite period. As one observer says:
"This may or may not mean ultimate revaluation at
the present level, but the chances are that it does
and that the dream of a return to par has vanished."
French exchange continues quiet, and the franc is
looked upon as well stabilized at the present quotation
around 3.913'. It will be recalled that at the end of
last December the value of the franc had recovered all
the decline suffered in 1926. The recovery was due
largely to Poincare's program for balancing the budget
and to a general feeling of confidence which resulted
in a return of the franc from abroad, and a concomitant flow of foreign funds seeking investment in
France. These movements are, of course, largely
responsible for the great increase in the Bank of
France holdings of foreign currency and in its balances
abroad. The program of the Government, adopted
last September, of stabilizing the franc at 124 to the
pound sterling, or about 25 to the dollar, has had
much to do with the improvement in the value of the
franc and the flow of foreign currency to Paris. At
the end of December the Bank of France's holdings
146
of foreign currencies were about 4,802,000,000 francs.
In the six months ending June 16 they had increased
to 21,300,000,000 francs, or approximately $600,000,000. It is this volume of foreign bills and currency
and credits abroad which threatens gold holdings in
other centres, especially in London, and leads franc
holders to believe that under the free play of supply
and demand in the exchange market the franc has a
promise of gradual, perhaps rapid, return to parity,
unless arrested by Government stabilization programs.
Many authorities in France, among them Baron
Edouard Rothschild, President of the Nord Railway,
urge a higher revalorization than the present level.
There is also a strong element against accepting as
permanent any degree of depreciation. These opinions are, of course, not without influence on foreign
exchange trading, and induce a very considerable
flow of foreign currencies from many centres on the
expectation of a future profit. In the New York and
London foreign exchange markets the current day-today transactions in francs, it is believed, far surpass
those of all other currencies, not excepting either lire
or sterling.
The London check rate on Paris closed at 124.02
on Friday of this week, against 124.02 on Friday
of last week. In New York sight bills on the French
centre finished at 3.913/b (unchanged from a week
ago); cable transfers at 3.91% (unchanged), and
/,against 3.91 a week
commercial sight bills at 3.911
ago. Antwerp francs finished at 13.90 for checks and
at 13.91 for cable transfers, as against 13.883/i and
13.893/2. Final quotations for Berlin marks were
23.69 for checks and 23.70 for cable transfers, in
comparison with 23.69 and 23.70 a week earlier.
Italian lire closed at 5.4432 for bankers' sight bills
and at 5.45 for cable transfers, against 5.533/i
and 5.54 last week. Austrian schillings have not
%. Exchange on Czechobeen changed from 141
slovakia finished at 2.963, against 2.963; on
Bucharest at 0.63, against 0.603's; on Poland at
11.35, against 11.40, and on Finland at 2.52 (unchanged). Greek exchange closed at 1.323/ for
checks and at 1.329' for cable transfers, against
1.35 and 1.35% a week ago.
On the exchanges of the countries neutral during
the war, the features of the week have been a reaction
in Spanish pesetas and in Norwegian exchange.
There has also been considerable activity in guilder
grain bills. The drop in pesetas was perhaps a
normal readjustment, as two weeks ago they had
moved rather too far upward, making a gain of
34 points, from 16.86 for checks to 17.20 last Friday.
The reaction this week carried the peseta yesterday
to 16.97. The Scandinavian exchanges have on the
whole been steady, with extremely quiet trading.
Norwegian exchange weakened slightly, going as
low as 25.85, against 25.88 last Friday. Disappointment was expressed in some quarters over the weakness in the Norwegian kroner, as there was a slight
speculative interest in it acquired on the possibility
that the Norges Bank officials would take advantage
of the quiet market on Monday, when New York
was closed, to send the rate to parity (26.8) or near it.
But the Norges Bank monthly report showed that
foreign holders of kroner had been liquidating, a
fact indicated in a reduction of the Bank's holdings
of foreign currencies. Commercial transactions in
Norwegian, as in the other Scandinavian, were of
slight volume.
[Vol.. 125.
THE CHRONICLE
Bankers' sight on Amsterdam finished on Friday.
at 40.04%, against 40.043/ on Friday of last week;
cable transfers at 40.063'i, against 40.063/2, and commercial sight bills at 40.02, against 40.02. Swiss
francs closed at 19.243/ for bankers' sight bills
and at 19.25 for cable transfers, in comparison with
19.24% and 19.253. a week earlier. Copenhagen
checks finished at 26.72 and cable transfers at 26.73,
against 26.72 and 26.73. Checks on Sweden closed
at 26.77 and cable transfers at 26.78, against 26.79
and 26.80, while checks on Norway finished at
25.89, and cable transfers at 25.90, against 25.88
and 25.89. Spanish pesetas closed at 17.06 for
checks and at 17..07 for cable transfers, which compares with 17.20 and 17.21 a week earlier.
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 19224
JULY 2 1927 TO JULY 8 1927, INCLUSIVE.
Country and Monetary
nit
Noon Buying Rate for Cable Transfers to New York.
Value in United States Money.
July 2. I Jtdy 4.
$
EUROPE14075
Austria, schilling
1389
Belgium, belga
007183
Bulgaria, lev
Czechoslovakia, kron 029627
2672
Denmark, krone
England. pound ster48588
ling
.025195
Finland, markka
.0392
France, franc
Germany, reichsmark. .2370
013492
Greece, drachma
.4006
Holland, guilder
.1744
Hungary, pengo
.0554
Italy, Ilra
2588
Norway, krone
.1135
Poland, sloty
.0503
Portugal. escudo
.005999
Rumania,leu
1716
3paln, pieta
.2679
3weden, krona
3witzeriand„franc__ .1925
Yugoslavia, dinar-- .017575
ASIAMina.6488
Chefoo, tad
.6438
Hankow,tael
.6236
Shanghai, tael
.6554
Tlentaln, tad
Hong Hong, dollar. .4915
Mexican dollar-.4553
Tientsin or Belyi
n-g
.4438
dollar
.4404
Yuan, dollar
.3616
rndia, rupee
.4733
fapan, yen
.5596
ling('pore(S.S.).do
NORTH AMER.
.998442
3anada, dollar
1.000094
".1uba, peso
.463000
dexIco. peso
gewfoundiand. dollar. .996000
SOUTH AMER.1rgentina. peso (gold) .9653
.1173
irazil. mllreis
.1202
3bile. peso
•
0017
$
July 5.
July 6.
July 7.
July 8.
$
.140.54
.1389
.007229
.029622
.2672
I
.14058
.1389
.007229
.029824
.2672
$
.14081
.1389
.007213
.029625
.2672
$
.14084
.1390
.007188
.029625
.2672
4.8559
.025196
.0391
.2370
.013398
.4007
.1744
.13553
.2586
.1125
.0502
.006083
.1711
.2679
.1925
.017576
4.8555
.025199
.0392
.2370
.013353
.4006
.1743
.0544
.2585
.1127
.0502
.006118
.1703
.2678
.1925
.017576
4.8552
4.8549
.025190 .025192
.0391
.0391
.2370
.2370
.013343 .013314
.4005
.4006
.1743
.1744
.0545
.0M6
.2584
.2585
.1130
.1127
.0502
.0501
.006218 .006247
.1701
.1702
.2676
.2677
.1925
.1925
.017583 .017582
HOLIDAY
.6438
.6400
.6196
.6504
.4884
.4519
.6454
.6403
.6202
.6521
.4888
.4436
.6450
.6400
.6107
.6517
.4882
.4431
.6446
.6400
.6196
.6513
.4880
.4438
.4392
.4358
.3614
.4741
.5596
.4377
.4344
.3613
.4727
.5596
.4377
.4344
.3612
.4728
.5596
.4379
.4346
.3612
.4728
.5596
.998415
.999594
.463167
.995938
.998374
.999406
.463500
.996188
.998428
.999156
.463833
.998188
.9648
.1172
.1204
.9653
.1176
.1204
.9655
.1176
.1204
.9652
.1178
.1203
00I '1
DOOR
0200
012AR
.998488
1.000094
.463833
.996219
The South American exchanges were inactive, but
on the whole steady. A feature of interest was the
strong tone of the Argentine peso, which advanced to
42.56, for cable transfers. Argentine paper pesos
closed at 42.45 for checks, as compared with 42.44
last week and at 42.50 for cables, against 42.49.
Brazilian milreis finished at 11.80 for checks and at
11.81 for cable transfers, against 11.72 and 11.73.
Chilean exchange closed at 12.00, against 11.99, and
Peru at 3.76, against 3.75 last week.
In the Far Eastern exchanges the important feature
of the week was the weakness in Japanese yen, which
on Wednesday sold down to 47.15 on fresh rumors
of commercial difficulties. There was a corresponding sag in Chinese exchanges. Some New York
bankers in close touch with Japanese affairs regards
the adverse trade and banking conditions of Japan
as factors which will hasten the consolidation of
Japanese industry and soon bring about a better
adjustment of business. A provision of a bill now
before the Diet of Japan requires all banking institutions to have a minimum capital of 1,000,000 yen,
to be authorized by the Ministry of Finance and
subject to its control. It is planned that the banks
are to have semi-annual audits and at the same
time it is hoped to make the currency more elastic,
There seems to be no one in foreign exchange circles
JULY 9 1927.]
THE CHRONICLE
147
new adoption would cause us to lose all the millions
previously spent in other devices. . . ."Right
now,' remarked one of our greatest captains of industry a few months ago,'two of our largest manufacturing corporations are gravely perturbed. They
have in their own laboratories, perfected certain devices which I am not free to name even vaguely.
These inventions, based on remarkable discoveries
in physics and electro-chemistry, are so radical and
The New York Clearing House banks, in their of such far-reaching importance that the companies
operations with interior banking institutions, have owning them fear to undertake their commercial degained $3,844,760 net in cash as a result of the velopment. Business advisers assert that, were the
currency movements for the week ended July 7. devices placed at once on the open market, hunTheir receipts from the interior have aggregated dreds of millions of dollars, now invested in less
$4,667,460, while the shipments have reached $822,- efficient products, would be lost irrevocably. And
the injury of such a colossal failure might, for a
700, as per the following table:
period of many years, exceed all the benefits accruBANKING
YORK
NEW
BY
SHIPMENTS
AND
CURRENCY RECEIPTS
INSTITUTIONS.
ing from the new devices.'" Continuing, the writer
Into
Gain or Loss
Out of
says: "I might cite half a hundred other authorito Banks.
Banks.
Banks.
Week Ended July 7.
ties, all to the same end. Man's brain is evolving
I $4,667,460
$822 700 Gain $3,841,760
Banks' interior movement
plans infinitely faster than flesh and blood men can
As the Sub-Treasury was taken over by the Fed- adopt them and profit by them. What the Biologeral Reserve Bank on Dec. 6 1920, it is no longer ical Bloc fails totally to comprehend is that, while
possible to show the effect of Government opera- one mind may spend only a hundred hours or so and
tions on the Clearing House institutions. The Fed- half a horse-power of energy in. inventing or discoveral Reserve Bank of New York was creditor at the ering something socially valuable, the world at large
Clearing House each day as follows:
may have to spend millions of dollars and millions
DAILY CREDIT BALANCES OF NEW YORK FEDERAL RESERVE BANK
hours in reorganizing business and society so as
of
AT CLEARING HOUSE.
to use the new idea profitably." Italics by the
Aorsocae
Saturday. Monday. Tuesday. Wednesd'y, Thursday. Friday,
for Week.
July 8.
author.
July 7.
July 6.
July 5.
July 4.
July 2.
What are we to do with ideas like these when we
146,000000 Holiday 118,000 000 110,000 000 102.000 000 106.600 000 Cr. 682.000.000
them face to face? They contain a proconfront
Note.—The foregoing heavy credits reflect the huge mass of checks which come
to the New York Reserve Bank from all parts of the country in the operation of found lesson. Can we learn it? Is he to be called a
the Federal Reserve System's par collection scheme. These large credit balances,
however, reflect only a prt of the Reserve Bank's operations with the Clearing reactionary, an old fogy, because he says "Make
House institutions, as only the Items payable in New York City are represents in
the daily balances. The large volume of checks on Institutions located outside of haste, slowly?" Beyond invention lies what, if it
New York are not accounted for In arriving at these balances, as such cheeks do
not pass through the Clearing House but are deposited with the Federal Reserve
be not the peace and joy of the world! What is the
Bank for collection for the account of the local Clearing House banks.
immediate result of rapid and thoughtless change
The following table indicates the amount of bul- if it be not the "Turmoil"? What will become of a
lion in the principal European banks:
workless world if it fail to become a world of love
wisdom? If we are to create foundations for
and
July 8 1926.
July 6 1927.
Banks of
science that it minister through newly-discovpure
Total.
Total.
Silver.
Silver.
Gold.
Gold.
to applied science, now conquering
principles
ered
£
£
151,074,446 150,520,960
150,520,960
England 151,074,446,
and chemistry, what furFrance a_ 147,300,2681 13,780,000 161,060,268 147,372,472 13,480,000160,852,472 through laboratory physics
994,600 62,591,300
Germany b 87,234,850; c994,600 88,229,250 61,596,700
It
103,896,0001 27,666,000 131,562,000101.635,000 26,968,000128.603,000 ther economic catastrophes will come upon us?
Spain
Italy
46,517,000; 3,961,000 50,478,000 35.730,000 3,426,000 39,156,000
to
going
we
are
how
ask
Netherrds 33,654,000 2,370,000 38,024,000 35.526,000 2.279.000 37.805,000 has already become trite to
Nat. Belg. 18,404,000 1,168,000 19.572,000 10,955,000 3,569,000, 14,524,000
for
pay
to
is
what
and
who
But
leisure?
Switzead. 18,'205,C00 2,783.000 20,988,000 16,775,000 3,567,000' 20,342.000 spend our
12,305,00C 12,691,000
Sweden... 12,305,000
12,691,000
Denmark. 10,703,000
738,000 11,439,000 11,400,000
836,000 12,236,000 these millions in discarded machinery if it be not
Norway
8,180,000 8,180,000
8,180,000
8,180,000
somehow human labor—of brain if not of brawn?
Total week637,473,364 53,438,600690,911,964 592,382,132 55,119,000647,50i,732
Prey. week 638,480,619 53,807,600692,288,219592,139.859 55,017,600647,157,459 Is there somewhere an undiscovered realm of praca Gold holdings of the Bank of France are exclusive of gold held abroad, amounting
the present year to £74,872,836. b Gold holdings of the Bank of Germany are tical science that will furnish forth a "perpetual
exclusive of gold held abroad, the amount of which the present year Is £2,893,800.
motion" that will serve all our needs, spiritual as
c As of Oct. 7 1924,
well as physical? We may be more specific—How
Let Well Enough Alone for a While.
are we paying now for this dream world of machineMr. Walter B. Pitkin, in the June "Century Maga- made accomplishments touching every phase of life
zine," under the title "The New Testament of Sci- save by overworking the beneficent service of credit
ence," discussing the assertions of what he terms the Is progress to become our fatal star; and is inflaBiological Bloc that "mankind is going backward," tion in trade and commerce to prove our undoing?
that "the brain of man is not growing," etc., Again must we come back, however ineffectually, to
quotes in opposition the following: "It is no the control that lies in the people themselves. In
longer a question of what we can do in electrical another article we have discussed the question of
development,' one of the leading electrical engineers commercial transportation by air. Suppose its
in the world said to me recently. 'The one problem magic use comes in ten years (a short time in the
is: which thing is most profitable to do next? . .
march of modern invention) and displaces the rail'No sooner do we spend several million dollars on a road as the automobile is now partly displacing the
new invention,' remarked another engineer at the railroad, to what good? Must one be counted a
head of an immense corporation, 'than some young "hold-back" who refuses to be carried into riotous
stranger saunters into our office and shows us a encouragement of this new device?
still more revolutionary device he has just doped out.
It may be contended that we are overstating the
Were we to adopt each new device purely on its own case. No such thing will happen. But the illustramerits, we should soon wreck the business. Each tion still serves to show that the ultimate control,
in the least bullish on yen, pending the carrying out
of the program referred to. Closing quotations for
yen checks were 47.22@47%, against 473.j on Friday
of last week. Hong Kong closed at 4938@49 3-16,
against 49@49 7-16; Shanghai at 62@62%, against
62V4,@63; Manila at 4932, against 49M; Singapore
at 56A@56% (unchanged); Bombay at 3634., against
.36 5-16, and Calcutta 3634, against 36 5-16.
148
THE CHRONICLE
[VOL. 125.
in fact the only control (for the restless human mind careless of those who are about us. We are heedless
cannot be quenched), lies in the sober, thoughtful, of those who are hard-pressed to "keep up." Blame
modest living of the people! How that control is not the maker of wireless. Blame those who must
to be brought into existence we do not know. If it have it as a toy to amuse idle moments. There seems
cannot be, then all the teaching of thoughtful essays to be a fascination about speed we cannot resist.
like the above is lost. Mr. Pitkin indulges in a Yet we cannot race with time. The loud-speaker
whimsical presentation. He makes sport of eugen- reaching thousands cannot hold their attention as
ics. He denies the claims of the uplifters. But he the presence of the human voice. The writer quoted
pleads for sanity in the essence of living, in the repeats these words from a "Wall Street financier":
homely qualities of true helpfulness and plain "The world is in reality growing poorer, because prothought. Progress, rushing heedless over the past, duction is outrunning consumption faster and faster.
may yet destroy the future. These transforming in- Our economic system is unsound as a result of the
ventions, unless temperately and wisely used, im- stupendous increase in the potential output of modpinge not only upon industry, commerce, human hap- ern machinery. Manufacturers in many lines now
piness and the peace of the world, but upon the fibre have on their factory floors equipment which is
of character and government. .While science is daz- either idle much of the time or else grinding out
zling man with discoveries, is common sense and goods that glut the market and lead tO a financial
common virtue teaching him honor, modesty and slump as a result of unsettling prices and values.
reverence for his fellow man? Why linger long in Inventors are increasing the rate of mechanical protheory over the bugbear of inequality and the uto- duction much faster than education or publicity can
pian scheme of a paternal Government while man increase the amount of buying by the average conand society laps up every invention as an individual sumer. This fact constitutes the gravest peril in our
right to use, own and prosper? Vain question. Yes. present economic system." Apply, if you will, this
But is this constant change to accelerate with the thought to the aggravated farm problem!
years, faster and faster destroying more than it creWe are experimentalists, all. We are not willing,
ates? What is to bring the desired "amelioration" in anything, to "let well enough alone." We are conbut man himself? "Living too fast," consuming the stantly tinkering with the best Government in the
overproduction of the machine, at the expense of world, measured by its original conception. We are
billions of debt, well, what is the answer? Surely all-Wise in our own conceit. Once the new, progresnot the fear of disappearing brain, not the twaddle sive idea comes to us, we proceed to put it into effect.
about morons, not the carping of critics who want This extensive scientific knowledge we have is not
more inventions, more business, more pleasure, more the equivalent of wisdom. Other nations in art and
progress?
letters have surpassed us—and they live no more.
Change! But why is nothing good enough for the But their spirituality lives on. If we leave nothing
generation that produces it? Is there full satisfac- but the science that transforms into machinery, how
tion in life? Are we not always straining for some- will this preserve our spirituality to the future? It
thing better, something that does the same service is not foolish, though it may be futile, to ask for
quicker? Why strive to annihilate time and space more of reflection in our "advance." The things of
at the expense of rest and reflection? We could not the spirit alone are lasting. An attitude of mind, is
use and consume these new products if we paid cash more than an era of "new thought." To be calm in
for them. We could not instal the new machine if the midst of discovery, to weigh the uses by needs,
we paid cash for it. Instalment selling is but one of to apply the thing to the thought of the time, and to
our banes—borrowing for "improvements," public relate all to a spiritual destiny, these are the sober
and private, is a far greater evil. Is it not a real essentials. Why try always to be ahead of time?
moral problem that we do not load the next genera- To live ahead of our own times? To borrow from
tion with debt simply in order to advance ourselves the future? If this future shall be as eager as our
by bringing into commercial being every new device own, it will promptly scrap this vainglorious heritin physics and chemistry? Are we not wild to ac- age we are so wildly trying to bequeath to it. And
claim the wonders of progress? What is progress? again we must ask, at what heavy cost in labor, disIs it all material? No one wishes to go back to the satisfaction and inequality are we now living? Let
spinning wheel and blue jeans. But must we all, as us, then, not stop in well-doing, but put the brakes
the writer suggests by way of illustration, wear on in the interest of safety!
"rayon silk"? Of course, these are idle questions.
Some Problems of Commercial Aviation.
The craze for so-called progress is on us. Fortunes
are made out of new things—though they supplant
The transatlantic flights of Lindbergh, Chamberthe old, which are often "good enough." Who can lin and Levine, and Byrd and his associates, together
control this motive power urging on the advance? with the successful flight of Lieutenants Maitland
Not laws which restrict and abolish. That way lies and Hegenberger, of the United States Army, from
slavery! Not admonition and preaching to the heed- Oakland, Cal., to Honolulu, naturally raise the quesless and selfish. That way lies futility! Yet the tion of how soon, now that ocean transit has been
natural laws are inexorable. We can go on until we proved possible, air transport over sea as well as
destroy the very fabric of commerce, "business," by over land may be expected to be put firmly on a
rendering its conduct so uncertain that collapse will commercial basis. There is obviously some justificome, and a period of inaction follow. We can bor- cation for thinking that the time may not be long.
row to 'improve" until the interest cannot be longer Already the American aviators who have crossed
paid and inflation "blows up," spreading poverty in the Atlantic are reported to be busying themselves
its wake.
with plans for regular transatlantic communication,
There is something wrohg with our logic. We do and President Coolidge was reported on July 1 as
not stop to count the costs. Time is for tenderness believing that the time had come to establish landand truth. Space is for being and benefit. We are ing-places in the ocean, and as favoring interna-
JULY 9 1927.]
THE CHRONICLE
tonal agreements which should map out air routes
and provide for lighting and protecting ocean landing stations. The transcontinental air mail service
in this country, itself an important aspect of commercial aviation, has become a matter of common
knowledge and use, rather than a novelty, and the
American Railway Express has just announced the
proposed inauguration, on Aug. 10, of a transcontinental air express service between New York, Chicago, Dallas, Los Angeles and San Francisco. A
daily passenger service by airplane was begun on
Tuesday between Chicago and St. Paul.
The differences, on the other hand, between such
isolated performances as those of Colonel Lindbergh
or Commander Byrd, and air service on a commercial basis, are many and important. A Lindbergh
flight, for example, is both experimental and individual. It conforms to no schedule, is neither repeated nor followed by a return trip, and is carried
through regardless of cost. Lindbergh made his
flight alone, and the Byrd party numbered only four.
Commercial flying, on the contrary, must be profitable if capital is to remain invested in it, and in
order to be profitable it must be regular, safe and
substantially independent of wind and weather. The
accommodations which it offers to passengers will
need to be such as shall insure reasonable comfort
for a journey of approximately two days, and enough
passengers must be carried at one trip to.keep the
cost within reasonable bounds. It would lie idle to
assume that transoceanic voyaging by air can be
made commercially profitable if only one or two
passengers can be carried at a time, or if those who
make the journey can neither move about nor lie
down during two days and nights, or if a few sandwiches are to be the only food, or if rarified air and
extreme cold are to be combated only by the constant wearing of oxygen masks or special clothing.
What these experimental flights are accomplishing is not merely to demonstrate that a transoceanic
passage is possible for a few skilled and venturesome
aviators backed by unlimited funds, but still more
to point the way to the solution of practical problems of science and mechanics that will have to be
mastered before long distance aviation can take on
an assured commercial character. Mr. James H.
Scarr, the senior meteorologist of the Weather Bureau at New York, pointed out on Wednesday, for
example, that "far the most difficult step" in transatlantic air voyaging, that, namely, of crossing the
ocean from east to west, had still to be taken, and
that the east to west route was "at least 50% more
difficult" than the course from west to east. Moreover, even in the west to east flight, experience has
shown that weather forecasts for the mid-Atlantic
area are as yet hardly more than guess-work, and
that a considerable development of meteorological
service, certainly with international co-operation
and probably with an extended use of radio communication, will be needed before the aviator who departs from either continent can be given much assurance regarding the weather he is likely to meet.
Mastery of weather conditions, indeed, seems to
come near to being a primary factor in commercial
aviation. The airplane must go on, if a commercial
service is to be maintained, whether the skies be
fair or dark, exactly as the ocean liner sails on
schedule time, irrespective of fog on the Newfoundland Banks or reports of gales five hundred miles
off shore. Commercial service will require a type of
149
airship that can buffet the wind and find its way
through fog or rain, and that will not be forced
down, if perchance it becomes heavily coated with
sleet or snow. The problem of construction is, of
course, a scientific one, and the solution at the moment has hardly passed the first stages, but there
seems no reason to doubt that planes will in time be
built that will carry passengers or freight in sufficient numbers or quantity to be commercially profitable, and with no more danger of collapsing or
breaking in two than there is that a modern liner,
with a tonnage several times that of ocean steamships of a generation ago, will meet a similar fate.
Whether the types of commercial planes that are
used in Europe are susceptible of development for
the requirements of ocean service is, perhaps, an
open question, for it must be remembered that European air routes are relatively short, and that the
weather hazards of overland flying are far less than
those of a transoceanic flight.
Equally serious, yet doubtless quite as certain of
ultimate solution, is the problem of landing-places.
The ordinary conditions of landing and "taking off"
by land seem, at the present stage, extremely prodigal of space, and some other method will apparently
have to be devised, especially near large cities, by
which an airplane can rise more directly from the
ground, and land with safety in a smaller area. Even
with the present extensive fields, the landing of a
plane is not always either easy or safe. Commander Byrd,in an article in the New York "Times"
of Wednesday last, declared his belief that "we
demonstrated that a plane could land on the water
without disaster to the passengers and that lifeboats could be put overboard," but the condition of
the "America" and its crew after the forced landing
in the sea at Ver-sur-Mer, with Commander Byrd
catapulted into the water and one of his companions
entangled in the plane,is nota manner of arrival that
an ordinary traveler would view with equanimity.
The picture of floating landing-places in the ocean,
bizarre as it may appear to many persons, is perhaps much less visionary than it seems. Science
will in due time tell us whether a huge floating
island would be likely to drift with the ocean currents to such an extent as to make it useless as a
landing or supply station; but, granted a reasonable
measure of fixity, it requires no wild spasm of imagination to conceive of the possibility of planting in
mid-ocean large floating structures, equipped with
suitable and safe landing-places, repair facilities,
and fuel supply, lighted by electricity and furnished
with distinguishing marks or signals, and connected
with the rest of the world, as well as with ships and
airplanes, by radio. The difficulty of maintaining a
supply of fuel at such ocean stations would be no
greater than that of delivering oil or coal to other
parts of the world, and now that the maintenance
of ocean cables has long since ceased to be a problem,
why not ocean pipe-lines? The establishment of
ocean stations, and of suitable landing and departure stations on land, would be a natural feature
of the international agreements to which President
Coolidge referred for the mapping of air routes and
the general regulation of aerial commerce.
These are some of the major aspects of the situation. Unquestionably we are only at the beginning
of a period of vast expansion of air navigation. The
epoch-making changes which have largely replaced
sails with steam, substituted huge ocean liners and
150
T1TE CHRONICLE
fast express trains for vessels of small tonnage and
trains of modest speed, crowded the streets and highways with automobiles where only horse-drawn vehicles were found before, and given prodigious extension and variety to the practical uses of electricity and radio, are quite evidently to be followed,
and followed rapidly, by equally marked changes in
communication by air. The immediate possibilities
of more frequent service, joined to the shorter runs
between terminals, make it probable that the commercial development of air travel over the land will
go on faster than the development of air travel across
the sea, and planes that will serve very well in the
one case may not suit the conditions of the other.
Now that ocean transit by air has been proved feasible, however, albeit under highly specialized and
uncommercial conditions, the transition from inspiring experiments and "stunts" to the practical
regularities of commercial requirements may be expected to advance apace. Stronger, larger, safer
and more comfortable planes, reliable engines for
planes of any size, comprehensive and dependable
weather forecasts, fixed routes, landing and supply
stations on land and sea, regular schedules and mastery of the peculiar difficulties of cold and a high
altitude—such are the conquests of science, mechanical skill and business enterprise for which we may
confidently look. To this coming development every
experimental flight of a Lindbergh, a Chamberlin, a
Levine, a Byrd, or an army officer in line of duty,
makes a substantial and praiseworthy contribution.
Mercantile Insolvencies in June and the Half
Year—Bank Failures.
Insolvencies in the United States during June
make quite the same showing as for the earlier
months this year, mercantile defaults being somewhat more numerous than in recent preceding years
and liabilities larger than they were last year or the
year before. Some of this increase may be attributed to what is called the natural growth in the
number of business firms, but not all of it. Overextension in various directions has been quite apparent, especially in some speculative lines during the
past year or two, and defaults have resulted. There
were 1,833 failures in mercantile lines reported in
June this year, according to the records of R. G. Dun
& Co., with liabilities of $34,465,165. These figures
compare with 1,708 in June of last year involving
$29,407,523 of indebtedness. The increase in number is 7.3% and in liabilities 17.2%. The ratio of
increase in number for each month this year has been
less than the increase in indebtedness.
For the second quarter of the year 5,653 mercantile defaults are reported, involving $125,405,666,
as against 6,643 for $156,121,853 of liabilities in the
first three months. The increase in the number of
failures during the second quarter over last year is
4.8%; for the first three months it was 9.2%. As to
the indebtedness, this for the second quarter was
larger by 23.6% than last year, while for the first
three months the increase was 43.9%.
The June figures, as to the number of defaults,
hardly maintain the improvement noted" in other
months of the second quarter, but the increase in
indebtedness shown for that month is somewhat
less than the increase reported for the three months'
period. Separated as to classes of business there
[VOL. 125.
were 427 failures in the manufacturing division in
June,in comparison with 435 a year ago; 1,310 trading defaults in June this year against 1,160 last
year, and 96 failures of agents and brokers against
113 a year ago. The increase this year is wholly in
the trading class. As to the indebtedness involved,
some large defaults in both the manufacturing and
trading divisions add to the losses indicated. Liabilities in manufacturing lines last month of $13,586,903 compare with $10,091,603 in June a year
ago; in trading lines $17,856,038 against $15,525,130 a year ago, and for agents and brokers, $3,022,224, against $3,790,790.
The increase in the number of trading failures
last month was distributed among a number of important divisions, general stores, grocers and related lines, dealers in clothing, in dry goods, and in
shoes. Slightly more than one-half of all trading
defaults in June were in the five divisions enumerated. There was also a small increase last month
in the number of trading failures for dealers in hardware and for hotels and restaurants, while for dealers in jewelry a marked decline is shown for June
this year and a small reduction for dealers in furniture, and in drugs. A large hotel failure in the
West contributed materially to liabilities reported
for June this year. There was also a large increase
in the indebtedness reported for general stores;
likewise, some increase of liabilities for grocers,
clothing and for furniture. On the other hand, liabilities reported for June this year were reduced
as compared with a year'ago for the classes embracing dealers in furniture, in tobacco, hardware and
in jewelry.
As to the failures for the second quarter of the
year, 1,363 were manufacturing defaults; 3,944 in
trading lines,' and 346 agents and brokers. The increase in comparison with the second quarter of 1926
is mainly in the trading class, there being 190 more
defaults in that division this year than last, an augnientation of 5.2%. As to the manufacturing division, the number is practically the same (only 3 less
this year), while for agents and brokers there are 71
more defaults this year than last. In the first quarter of this year the increase in trading lines was
9.5% and in manufacturing 3.8%. An increase in
the defaulted indebtedness is shown in all three
classes. For the trading division in the second quarter liabilities are $60,141,638, an increase of 19.5%
over a year ago. The manufacturing class shows
total liabilities for the second quarter this year of
$52,666,051, 23.5% larger than last year, and agents
and brokers $12,597,976, an addition of more than
55%. In the first quarter the increases over the preceding year were, respectively, trading 25.9%; manufacturing 43.8%, and agents and brokers considerably more than double. It is apparent from these
comparisons that the report for the second quarter
of the year is relatively more favorable than for the
first quarter.
The details by States are given in the quarterly
report. As noted previously, there were 5,653 mercantile failures in the United States in the second
quarter of this year, an increase of 288 over a year
ago. In the first quarter the number was 6,643, an
increase of 562. The additions in the second quarter
were in the South, in the Central States and on the
Pacific Coast. For the New England and Middle
Atlantic States, and the Far Western, or Mountain
States, mercantile defaults were fewer in the second
JULY 9 1927.]
THE CHRONICLE
quarter of this year than they were a year ago. The
increase in liabilities for the second quarter of this
year over last year applies to all sections, excepting
alone the Middle Atlantic States. There is a marked
decline in the defaults in the second quarter this
year in Massachusetts and Connecticut—in fact, in
all of the New England States except Rhode Island.
Liabilities reported in Massachusetts, however, are
very much larger this year, but in the other New
England States decreases appear. The increase in
Massachusetts is mainly in the manufacturing divisions. The three Middle Atlantic States all report
fewer failures in the second quarter this year than
last, and a reduction in indebtedness is shown in
Pennsylvania and New Jersey. There is an increase
of indebtedness in New York State and this also
appears in the manufacturing divisions.
In the South some declines appear both in the
number of defaults in the second quarter of the year
and in liabilities. This especially applies to West
Virginia, North Carolina, Kentucky, Oklahoma and
Texas. Liabilities in some of these States, however,
are heavier this year than last, owing to some large
trading failures. Florida leads the other Southern
States in the mercantile defaults, the number of
failures in that State being larger in the second
three months of the year than .in the first quarter.
Liabilities also were heavy in Florida, in both quarters. Defaults this year are more numerOus in
Maryland, South Carolina, Georgia, Tennessee, Alabama, Mississippi, Arkansas and Louisiana, with
liabilities in most of these States unusually high.
In the Central and Western States the increases
are scattered and in the main not heavy. There
were a few more failures this year than last in Ohio,
Indiana, Illinois and Michigan; in Minnesota, Missouri, the Dakotas, Nebraska and in Kansas. In
the States further West, practically all of them show
a decline in the number of defaults this year. Wis-
151
consin and Iowa report fewer failures this year, and
there is quite a reduction for Montana and Colorado. Most of the Central and Western States report larger liabilities this year than last. The exceptions include, among other States, Michigan,
Iowa, Nebraska and Colorado. Some large failures
added to the indebtedness shown in Ohio, Indiana,
Ilinois, Minnesota and Missouri. There are increases as to liabilities in other Western States, but
they are not large. In the three Pacific Coast States
more insolvencies are reported for the second quarter this year than last in California and Oregon, but
a decrease appears for Washington. The increase in
indebtedness shown for that section is due to some
large defaults in Washington and Oregon, especially
the latter. A reduction is shown for this year in
liabilities in California.
Quite an improvement appears in banking suspensions in the second quarter of the year, when 81 bank
failures were reported with total liabilities of $25,427,900, as against 115 a year ago for $30,309,000.
As in recent preceding years, many of these banking
defaults occurred in the seven Central States, including Minnesota, Missouri, the Dakotas, Iowa and
Nebraska. Nearly 57% of the total number was in
that section, but a year ago it was nearly 70%.
There were no bank failures in New England in
either year and only one in the East and that was
in Pennsylvania. In the South 14 are reported
against 19 last year, West Virginia, Georgia and
Arkansas together reporting ten of the fourteen in
the South. A number of Southern States -report
none this year, where banking suspensions were reported in other recent years. Three Central States
report 11 bank failures this year, against six a year
ago, Ohio, Illinois and Indiana. There were fewer
banking defaults this year than last, in the Far
Western States and only three reported in California and Oregon.
"The Investor's Problem "—Bank Credit a Big Item in the United States
in Power to Absorb Securities
By HARTLEY WITHERS, formerly Editor of "The Economist" of London.
[Copyrighted by the William B. Dana Company for the "Commercial and Financial Chronicle." Exclusive copyright in the United States.]
A long-sighted view of the investment position is always
necessary and always difficult. Just now, both the necessity and the difficulty seem to be abnormal, but I fancy that
really they always are, just as "Punch" is never quite as
good as it used to be.
On the surface, the indications seem to be strongly in
favor of cheaper capital, that is to say, lower interest rates,
higher prices for securities with a fixed yield and a consequent scaling of the rate of profit expected frond investments in common stocks and shares, with a rise in their
prices also. The most notable feature in the financial outlook which is on this side of the argument, is the evidence
of capital accumulation and the keen competition which has
lately been seen for the privilege of lending, which is in
marked contrast with the state of the capital market a short
time ago.
In this accumulation, and also in the race for lending, the
United States, of course, have left the rest of the field
standing. A statement lately issued by the United States
Department of Commerce said that in the first five months
of this year bonds and stocks offered to investors in the
New York market aggregated nearly $3,200,000,000. and that
"practically all these offerings have been fully subscribed
by investors as they were brought out by the bankers. The
total offerings during the first five months of the year are
approximately three times as great as in the first three
months of 1926." In spite of this amazing activity in new
issues, which might have been expected to be somewhat
detrimental to the prices of existing high-class securities,
the American Government, owing to the strength of its
financial position and the prospect of tax reductions which
make our mouths water in less favored countries, has been
1
2%
able to announce the redemption of the remaining 4/
Liberty bonds, issuing a 3%% bond to replace them.
Though other centres cannot attempt to imitate these
soaring flights, yet the number of countries which are now
offering capital abroad, or purchasing foreign securities—
which comes to the same thing—is a remarkable feature in
the situation. From Canada, Holland and Sweden reports
of activity in this connection have arrived, and England has
been busy, with an enthusiastic demand on the part of her
public for foreign securities with high rates of interest.
France, always a thrifty accumulator of capital, is at present, owing to currency preoccupations, out of the picture—
in fact has been engaged in giving an uncomfortable jolt to
the monetary apple-cart by buying bar gold with a view to
forcing rates up in other centres; but these are temporary
inconveniences, and there can be no doubt that France will
return to her old place in the front of the stage as a lender,
when once she has dealt with her stabilization problems.
152
THE CHRONICLE
On the other side of the picture is the possibility of a revival of international trade with a consequent diversion of
funds from investment into industry. Free foreign lending
usually has the effect of stimulating the movement of goods
across the frontiers and it may be true that the recent demand for securities has been to some extent, at least in England, caused by trade depression and might vanish with that
recovery which has so long been hoped for.
In America there is no question of trade depression to
account for the activity of Wall Street, but on the other
hand it is clear that it has been assisted by banking credit
to a considerable though ,not unprecedented extent. The
statement quoted above also said that during May brokers'
loans on stocks and bonds "advanced to $2,964,650,000, a
new high record for the present movement. This figure is
$533,145,000 above the total at this time last year, but
$176,475,000 below the high point established in January
1926." Nearly £600,000,000 of loans to brokers, apart from
loans from bankers to private customers for carrying securities and investments by the American banks themselves,
suggests that bank credit is a big item behind the power of
the United States to absorb securities, and that if any contraction of credit should occur in the United States, the
New York market might be a hasty and voluminous seller.
At present, however, there is no indication of any likell-
[Wu 125.
hood of such contraction, though the American demand for
European securities has lately shown a tendency to take a
rest, which is quite a hopeful symptom, in view of the pace
at which it has been fed.
In old days, when the ebb and flow of gold went more or
less regularly from continent to continent, securities used
pretty regularly to touch their peak in May or June and
then tend downwards until November, when the worst of the
crop-moving drain of the autumn was over. Nothing has
happened lately quite in accordance with rule, though now
that we are gradually getting back towards normal conditions it may be that the tendency for prices to droop in the
second half of the year should not be left out of account. To
the real investor, however, who has sense enough not to
hope always to get in at the bottom, these surface ripples
due to monetary movements are not of great importance.
All that concerns him is the fact that the accumulation of
capital appears to be proceeding faster than the demand for
it—at least on the part of borrowers to whom it would be
wise to lend; and that though it is never wise to plunge on
the possibilities of finance, it is certainly the time to save
fast and invest quickly, and that there is much to be said in
favor of long-dated or perpetual securities, and of well-selected ordinary shares, for those who can afford to take
industrial risks.
Indications of Business Activity
STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, July 8 1927.
With more seasonable weather there has been a small
increase in retail business. It is worthy of note that according to some reports chain store sales for six months are
nearly $315,000,000, a gain over the same period last year of
15%. The mail order houses show larger sales for June
than in May. The combined sales of chain stores and mail
order concerns in June showed a gain over May of 2.9%,
and 11.3% over the same month last year. For the six
months of this year chain stores gained 16.4% over the
corresponding period last year and the combined sales of
chain and mail orders increased 8%% over the same period
in 1926. Meanwhile, however, wholesale trade has shown a
decrease, although the feeling is rather more cheerful, despite the moderate size of the actual sales. Taking industry as a whole it is slow, as is apt to be the case at this time
of the year. But many of the New England mills are in
better shape. In some cases their taxation has been reduced. In some of the New Hampshire mills operations
are going on night and day. The tendency at Fall River is
said to be to combine mills with a view of reducing the
overhead, and facing competition to better advantage.
Southern cotton mills are busy. On the whole the better
outlook for the crops has not been without some reflection
In trade, as already noted in the big mail order and chain
store business. Building is less active. Fewer permits are
reported for new structures, whether for business or the
home. Permits from some 125 cities are said to show a decrease for June of over 13% as compared with the same
month last year. For six months the total building is put at
nearly 9% smaller. Wool has been firm and in fair demand,
while in London the sales have gone off very readily at
firm or somewhat higher prices. Cotton has advanced
slightly, with some fears of weevil damage to the crop, although recent hot weather in the Atlantic States, and now
In Texas and Oklahoma, should cause less apprehension on
this score. It is said that very high temperatures in the
Atlantic States recently hit the pest hard. To-morrow will
be issued a Government estimate of the acreage. The average guess on this subject has been a decrease of about 11%.
If to-morrow's report should show much under 10% decrease a decline in prices may follow, whereas an estimate
well above 10% might have the opposite effect. The weevil
Infestation, however, is very heavy, and during much of
July and August the cotton belt will need dry, hot weather.
Meantime the consumption of cotton is on an enormous
scale at home and abroad. The home consumption and the
exports for the season may approximate 18,250,000 bales.
The Liverpool market has been very active, indicating apparently that Lancashire is somewhat nervous over the
question of the next American crop. That seems no unreasonable inference from the fact that for a couple of weeks
past the daily spot sales in Liverpool have generally been
10,000 to 12,000 bales, while the forwardings from Liverpool
to the spinners have also been on a liberal scale. Fears of
rust damage to the crop have caused an advance in July
wheat of 2% cents, although the export demand has continued to be disappointing. The foreign markets of late
have been in the main strong. Corn has advanced 3 cents,
owing to a dubious outlook for the crop. a better cash demand at the West at strong premiums. July corn has
been a conspicuously firm feature. Rye has advanced 2
cents on the July delivery, with expectations of a better
demand from Europe, where the crop outlook is not favorable. The actual export business in rye has been disappointing, but European prices are nearing a level which
will permit purchases in America. Higher prices for oats
are due to reports of damage to the crop in Illinois and
Iowa and a better demand at still relatively cheap prices.
Rubber has continued to decline under the stress of liquidation both here and in London. The stock in London did not
show as large a decrease as was expected last week, and
there has been no active demand. Evidently buyers have
assumed a waiting attitude until the price is plainly stabilized. That is no more than natural. Coffee, although
quiet, has shown a stronger technical position, and prices
have risen both here and in Brazil, in spite of the continued
harping on the idea that the Brazilian crop is to be so large
that prices cannot be maintained. In the sugar trade the
tone has been firmer and the advance for the week in futures of nearly 15 points is noteworthy. London has been
stronger and very large tenders on Yuly contracts here have
been handled with suggestive ease. They were very large
to-day, yet the market advanced. The speculation in sugar
has been the largest for months pat.
Woolens and worsteds have remained quiet. Raw silk
has declined. Broad silks for fall delivery have been in
fair demand. Cotton goods have been firm. Mills have
been disinclined to sell except at prices commensurate with
the recent advance in the raw material. Second hands have
sold at some decline, it is intimated, on print cloths and
other coarse yarn goods, but mills have been inflexible.
Detroit employment totals reach 182,306, a decrease of
7,100 from last week and 86,300 from the total of a year
ago. The lumber production is smaller than at this time
JULY 9 1927.]
THE CHRONICLE
last year. Iron and steel have been quiet. There is a small
decrease in the output of iron and steel for the six months
ending June 30. The latest pig iron figures show a sharp
decrease for the month of June. In the half year prices of
Iron have declined, it is computed, about 5% and those of
steel 3%. Railroad earnings for the first half of the year
are much the same as during the same period last year, not
only in gross receipts, but in net. The peak figures of 1926
trade have not been attained thus far in 1927. The general
trend of prices is lower. And with trade generally quiet
failures both in number and liabilities show some increase.
In industries the shutdowns are more prolonged than in
recent years. In general trade the turnover for the first
half of the year was a shade smaller than in the same period
of 1926.
The stock market has been irregular, at times advancing
only to recede, though the tone, in the main, has not been
unsatisfactory. Call money on the Exchange renewed today at 4% and outside was obtainable at 3% to 3%%. Time
money was steady and offering of commercial paper were
small. Some decline occurred to-day in the general list of
stocks owing to high loan figures, which for New York are
some $520,000,000 larger than a year ago. Sterllng exchange
to-day was stronger, francs were steady and Italian lire
rallied after some early decline. In London there was an
advance in the rail and oil stocks to-day, on the eve of the
settlements.
At Lowell, Mass., the Pepperell Manufacturing Co., which
comprises the plants taken over at Lowell last fall in the
transaction with the Massachusetts Cotton Mills, are operating at the present time at a4% of capacity, figured on a
pound basis, although not so well when figured on a spindleage basis. Of the Lowell machinery in operation 75% is
producing blankets with considerable night work, although
rather less than recently, due to some seasonal decline in
the business. At Manchester, N. H., the Amoskeag mills resumed work after a four-day shutdown and departments
went back on same schedule as before the vacation began.
The annual summer shutdown, it is announced, will occur
the last week in August and the first week in September.
At Nashua, N. H., the mills of the Nashua Manufacturing
Co. are running at a higher rate of capacity than for some
years past and at a profit. At Greenville, N. H., and
New
Ipswich the Otis Co.'s Columbian mills are operating
on
larger orders for blue denims. The company's taxation
has
been reduced and operatives are voluntarily
working at
lower wages. At Suncook, N. H., the Suncook
mills, making cottons and rayons, are operating at a
high rate. Also
the mills of the Exeter.at Pittsfield. At Newmarke
t, N. H.,
the Newmarket Manufacturing Co.'s cotton and
silk mills
are running at higher rate of capacity than
for some time
past and some night work is being done.
In the Codheco
Valley the plant of the Gonic Manufacturing
Co. Is busier
than for several years. It is running day
and night. Dover,,
N. H., wired that the Pacific mills were
adding help and employing hundreds from small less busy
textile towns in
Maine and New Hampshire. A large
number of operatives
are being employed on a night shift.
The entire mill is
operating at more than 130%. The
Sawyer mills of the
American Woolen Co. are the busiest
of the company's
plants in New Hampshire.
At Biddeford, Me., the Pepperell mills
were operating
at 110% up to the usual vacation shutdown
last week, and
the company expects to continue at substantia
lly this same
rate upon resumption. At Opelika, Ala.,
and Lindale, Ga.,
the units formerly owned by the Massachus
etts Cotton Co.
and now by the Pepperell mills, are running
day and night
on full production, turning out tickings,
denims, chambrays,
sheetings, etc.
Two of the largest mail order houses
in the United
States, Sears, Roebuck & Co. and Montgomery
Ward & Co.,
in their published June statements both
showed increases.
Sears, Roebuck & Co.'s sales for June were $19,340,64
0, an
increase of 5.8% over June 1926. Sales for the first
six
months of this year were $129,726,556, an increase
of 2.5%
over the corresponding period last year. Montgomery Ward
& Co.'s sales for June amounted to $16,697,933, an increase
of 0.5% over June 1926. Sales for the first six months
of
this year were $92,236,614, a decrease of 3.1% from the
corresponding period last year.
The hot wave in the Central West late last week was
broken by Saturday and on the 4th inst. Chicago was 62 to
66 degrees, Cincinnati 68 to 74, Cleveland 64 to 66, Mime-
153
apolis 68 to 74, Kansas City 84 to 86, Montreal 54 to 62. New
York on the 7th inst. had temperatures of 64 to 83 degrees
and heavy thunder showers towards nightfall, which lasted
two hours and halted city traffic, disrupted light and telephone service, stalled several subway trains and flooded
cellars and basements throughout the city, especially in the
northern part. Latterly, after being up to 90, it has been
62 to 66 at Chicago; Cincinnati on the 6th inst. was 64 to
88 degrees and the next day 70 to 86; Kansas City was 94
on the 6th inst., but 84 on the 7th; Indianapolis at 90 on the
6th fell the next day to 82; Milwaukee dropped from 90 to
70; Cleveland from 84 to 78; St. Paul has latterly been 82,
Winnipeg 74, Montreal 64, St. Louis 82, against 90 earlier
in the week. In Texas the 7th it was 100 to 106 and in Oklahoma 100 to 107. To-day it was 76 at 3 p.m. and the forecast was for fair and moderate temperatures to-night and
to-morrow.
Business Indexes of Federal Reserve Board.
We give herewith the Federal Reserve Board's indexes ctf
production, employment and trade, issued under date of
July 1:
INDEX OF INDUSTRIAL PRODUCTION.
(Adjusted for seasonal variations. Monthly average, 1923-25 equals 100).
May April May
1927 1927 1926
Total
Manufactures
Minerals
111
112
108
Mineral:Bituminous
Anthracite
Petroleum
Iron ore
Copper
Zinc
Lead
Silver
93
91
119 109
120 119
120
x
106 *105
107 109
113 *122
89 • 88
109
109
106
Maf/ April May
1927 1927 1926
Manufactures107
107 Iron and steel
103 Textiles
Food products
Paper and printing
100 Lumber
120 Automobiles
98 Leather and shoes___
95 Cement, brick, glass_
108 Nonferrous metals___
112 Petroleum refining_ _ _
116 Rubber tires
92 Tobacco mfrs
118 115
118 *113
103
99
113 114
87
95
105 103
97 • 96
108 109
110 111
132 134
129 *131
122 122
115
99
94
115
102
114
93
111
114
125
108
111
INDEXES OF EMPLOYMENT AND PAYROLLS IN MANUFACTURING
INDUSTRIES.
(Without settsonal adjustment. Monthly average 1919 equals 100.)
Payrolls:
ErnYloYment•
Total
Iron and steel
Textiles-Group
Fabrics
Products
Lumber
Railroad vehicles
Automobiles
Paper and printing
Foods, dro
Leather, &a
Stone, clay, glass
Tobacco, &a
Chemicals, ,ko
May
1927.
April
1927.
May
1926.
May
1927.
April
1927.
May
1926.
92.6
88.4
93.6
96.5
89.9
91.5
78.5
123.7
107.3
83.7
82.6
124.0
78.2
75.3
93.2
89.6
95.1
97.5
92.0
90.8
78.4
123.4
108.1
83.1
84.2
121.5
77.3
78.1
95.5
92.8
92.6
93.7
91.3
100.1
87.8
127.1
106.9
83.6
82.6
127.4
79.4
76.0
108.1
96.2
103.3
107.6
98.1
104.5
89.8
158.7
150.3
100.7
84.4
157.6
83.6
107.0
108.4
99.1
105.1
108.1
101.4
102.2
88.0
157.7
150.7
98.0
87.0
15L6
77.9
109.9
108.9
100.1
99.1
100.7
97.2
111.8
95.1
147.3
147.1
99.5
81.2
158.3
81.7
103.7
INDEXES OF WHOLESALE AND RETAIL TRADE.
Wholesale TradeTotal
Groceries
Meat
Dry goods
Shoes
Hardware
Drugs
May April May
1927 1927 1926
Retail Trade-
Deparet store sakeAdjusted
Unadjusted
Dept. store stocksAdjusted
Unadjusted
Mail order salesAdjusted
Unadjusted
x No figures available for these months. • Revised.
79
81
76
72
56
99
113
78
77
71
75
68
102
122
82
80
81
78
60
107
111
May April May
1927 1927 1926
127
131
140
143
132
187
138
138
139
143
138
138
119
106
125
128
117
105
Chain Store Company Sales for Half Year Break All
Records.
Sales of 12 of the country's leading chain store companies
broke all records during the first half of the current year, according to figures just compiled by George H. Burr & Co.,
specialists in chain store company securities. The compilation shows total sales for the period aggregating $314,582,087,
an increase of 15.6% or $42,542,047 compared with sales of
$272,040,040 reported for the same period last year. Sales
for June broke all records for any similar month. The
total was $56,915,181, against $49,354,953 last year, an increase of $7,560,228, or 15.3%. The following is the statement:
June.
1927.
Increase. Per Cl.
$U Months to June 30.
1927.
Increase. Per Ct.
$
$
$
s
F. W. Woolworth- 20,405,990 1.384,122 7.0% 116,766,245 9,564,796 8.0%
J. C.Penny Co
11.377.059 2.284.698 25.1% 59,712,526 13.637,962 29.6%
5.5. Kresge
10,064,047 1,229,667 13.9% 55,901,171 6,063,847 12.1%
5.11. Kress .1, Co
4.110,848
303,693 7.9% 23,359,046 1,670,933 7.7%
W.T. Grant
3,299,119
659.511 24.9% 17,066.083 2,670,634 18.6%
McCrory Stores
2,862.968
500,339 21.1% 16,972,689 2,789.590 19.6%
3.3. Newberry Co
1,168.284
409,969 54.0% 5,381,646 1,879,076 53.6%
F.& W. Grand
1,016,151
237,367 30.5% 5,388,813
979,17322.2%
Metropolitan Stores_
902.655
46,835 5.5% 4,906.631
600,939 13.9%
McLellan Stores
770,047
187,792 32.2% 4,248,830 1,065,043 33.3%
Neisner Bros
507,602
214,957 73.4% 2,593.069 1,122,951 76.3%
Isaac Silver de Bros
430,411
101,278 30.7% 2.285,338
497,103 27.7%
56,915,181 7,560,228 15.3% 314,582,087 42,542,047 15.6%
New York Federal Reserve Bank's Indexes of Business
Activity.
In its July 1 "Monthly Review of Business Conditions,"
the Federal Reserve Bank of New York presents the following
indexes of business activity:'
Indexes of business activity computed by this bank, although somewhat
lower for May than for April, continued to indicate a high level of trade.
Domestic retail trade was restricted by unfavorable weather conditions,
but remained moderately high, and foreign trade continued in large volume.
Bank debits both for the country as a whole and for this district, both
exclusive of New York City, showed slight reductions from April, but the
Index for the entire country was higher than in any month in recent years
with the exception of April. Freight car loadings showed somewhat less
than the usual seasonal increase, but continued to reflect a large primary
distribution of commodities. Business failures were less numerous than in
any other recent month, but continued to exceed those of a year ago.
The following table gives this bank's indexes of business activity in percentages of the computed trend, with allowance for seasonal variation, and,
where necessary, for price changes
(Computed trend of past years equals 100%.)
May Mar. April May
1926 1927 1927 1927
Primary DistributionCar loadings, merchandise and miscellaneous
Car loadings, other.r
Exports
Imports
Grain exports
Panama Canal traffic
.Distribution to ConsumerDepartment store sales, Second District
Chain store sales
Mall order sales
Life insurance paid for
Real estate transfers
Magazine advertising
Newspaper advertising
General Business ActivityBank debits, outside of New York CRY
Bank debits, New York City
Bank debits, Second District, excluding New York CityVelocity of bank deposits, outside of New York City
Velocity of bank deposits, New York City
Shares sold on New York Stock Exchange.*
Postal receipts
Electric power
Employment in the United States
Business failures
Building permits
New corporations formed in New York State
General price level
111 108
107r 99r
91
98
110 117
121
71
97
97
109
10fir
104
126
135
96
107
104
103p
1219
148
--
98
105
104
109
102
102
107
100r
103
102
114
96
101
101
94
100
100
106
91
103
101
119
137
109
107
134
229
97
116
100
121
129
114
183
117
135
164
108
131
214
92
-99
111
116
113
184
98
102
99
119
100
101
98
111 115
121 141
102 109
103 106
114 135
110 227
96
97
109 117
102 100
105 119
128 130
114 120
185 184
•Seasonal variations oft allowed for. p Preliminary. r Revised.
Dun's Report of Failures for the First Half of the Year.
Insolvencies in the United States during the month of
June numbered 1,833, with liabilities of $34,465,165, according to the records of II. G. Dun & Co., these figures comparing with 1,852 defaults for $37,784,773 in May this year and
1,708 in June 1926, involving $29,407,523. The increase in
the number of defaults in June this year over a year ago is
7.3%, practically the same as in May.
For the first six months of this year insolvencies numbered 12,292, with liabilities of $281,527,518, as against 11,476 a year ago involving $209,888,501. There have been only
two years, the first half of 1922 and the first half of 1915,
In which the number of commercial defaults has exceeded
those of this year; likewise as to the indebtedness involved,
only in 1924, 1922 and 1921 have the liabilities for the first
six months exceeded the aggregate this year. In connection
with the larger number of defaults this year consideration
must be given to the larger number of firms in business.
Monthly and quarterly report of business failures, showing number and liabilities, are contrasted below for the
periods mentioned:
Liabilities.
Number.
1927. 1926. 1925.
1927.
1926.
1925.
June
May
April
1,833 1,708 1,745 334,465,165 $29,407,523 $36,701,496
1,852 1,730 1,767 $37,784,773 $33,543,318 337.026,552
1 968 1,957 1,939 53.155,727 38,487.321 37,188,622
Second quarter
March
February
January
5,653
2 143
2 035
2 485
1st quarter
[VOL. 125.
THE CHRONICLE
154
,395 5,451 $125,405,665 $101,438,162 $110,916,670
.984 1,859 57,890,905 30,622,547 34.004.731
,801 1,793 46.940,718 34,178.348 40,123.017
.296 2,317 51,290,232 43,661,444 54,354,032
6.643 ,081 5.969 $156,121,853 3108,460,339 $128,481,780
The increase in the number of commercial failures in the United States
during June over the total for that period of 1926 occurred wholly among
traders, such defaults numbering 1,310, as compared with 1,160 in the
earlier year. On the other hand, manufacturing insolvencies fell to 427,
from 435 in June last year, and failures among agents, brokers, etc., numbered 96, against 113 a year ago. Only in the latter division, however, is
there a smaller indebtedness, and this reduction is considerably more than
offset by the increases among manufacturers and traders.
Further analysis of the June returns shows fewer defaults than in the
corresponding period of last year in eight of the fifteen separate manufacturing classifications, improvement in this respect occurring in machinery
and tools, woolens, carpets and knit goods, hats, gloves and furs, paints
and oils, milling and bakers, leather, shoes and harness, glass, earthenware and brick and miscellaneous. Among traders, the exhibit is less satisfactory, only five of the fifteen groups disclosing decreases. These are
tobacco, etc., furniture and crockery, chemicals and drugs, jewelry and
clocks, and hats, furs and gloves. In respect of the liabilities, six manufacturing classifications show reductions, these being machinery and tools,
woolens, carpets and knit goods, cottons, lace and hosiery, hats, gloves and
furs, leather, shoes and harness, and glass, earthenware and brick. The
record for the trading division reveals smaller totals in seven instances,
namely, tobacco, etc., dry goods and carpets, hardware, stoves and tools,
jewelry and clocks, books and papers, hats, furs and gloves, and miscellaneous.
FAILURES BY BRANCHES.OF BUSINESS, JUNE 1927.
Liabilities.
Number.
1925.
$159,900
3,262,290
432,800
7,500
1,056,538
802,571
20,200
248,311
1927. 1926. 1925.
1927.
Iron, foundries and nails_
4
2
5 $2,518,403
Machinery and tools
48
839,123
17
28
Woolens, carpets 3. knit g'ds
3
9
2
30,000
Cottons, lace and hosiery
3
1
2
417,114
Lumber.carpen's dr coop's._
70
51
53 2.143,620
Clothing and millinery
45
44
41 1,516,110
Hats, gloves and furs
4
8
3
38.001
Chemicals and drugs
5
3
5
53,224
Paints and oils
3
1
45.000
Printing and engraving...
21
20
18
407.005
Milling and bakers
34
46
29
443,012
Leather, shoes and harness_
10
16
192,933
7
Liquors and tobacco
11
6
8
605.119
Glass, earthenware dr brick_
3
6
7
45,029
All other
200 204 187 4,293,210
1926.
$140,000
1,151,973
76,000
700,000
1,072,708
837,411
331,500
50,500
37,000
270.650
308,378
765,260
46,105
81,500
4,222,618
Total manufacturing
TradersGeneral stores
Groceries, meat and fish
Hotels and restaurants
Liquors and tobacco
Clothing and furnishings
Dry goods and carpets
Shoes, rubbers and trunks
Furniture and crockery_ _
Hardware,stoves and tools_
Chemicals and drugs
Paints and oils
Jewelry slid clocks
Books and papers
Hats, furs and Moves
All other
$973,998 $1,093,687
1,731,355 1,989,396
892.220
688.307
244,956
136,845
1,450,888 1,820.520
1,652,229 1,960,355
640,367
360,584
816,815 1,464,815
937,290
945,264
428,497
198,375
59,000
38.400
387,300
545,986
76,742
100,500
202,438
97,000
5,450,351 5,353,839
Trading
Other commercial
Total
427
435
334.694
253,838
418,975
419.089
236,798
8,505,536
431 $13,586,903 *10,091,603 316.159,040
119 110
91 $2,030,104
319 271 297 1,932,503
88
86
84 3,574,608
20
23
23
121,222
173 145 152 1,787,560
92
62
82 1,084,435
70
577,450
62
38
52
55
49 1,245,790
26
348,235
39
32
47
36
489,355
43
8
5
6
64,760
421,785
23
40
21
71,443
6
5
8
12
5,200
5
2
264 236 272 4,101,588
1,310 1.160 1,229 317.856.038 $15,525,130 $17,213,189
85 3,022,224 3,790,790 3,329,267
96 113
1.833 1.708 1.745 334.465.165 329.407.523 836.701.496
June Construction Contracts Broke All Records,
According to F. W. Dodge Corporation.
June construction contracts in the territory east of the
Rocky Mountains broke all previous monthly records,
according to F. W. Dodge Corporation. Building and
engineering work contracted for last month in the 37 Eastern
States (including about91% of the country's total) amounted
to $632,478,000. There have been only four previous
months that had as much as 600 million dollars in contracts:
August 1925, August 1926, March 1927 and April 1927.
March of this year held the previous high record of 8620,738,200. The June increase over May was 15%; over June
1926, 16%. The June record brought the volume of construction started during the first half of the year up to
83,187,993,300, which is 2% ahead of the first half of 1926,
says the Dodge Corporation. Up to June this year had been
running a little behind last year. It should be understood
that building construction has run appreciably, though not
seriously, behind last year, and that engineering work has
largely increased. The report continues:
IVA
The June contract record included the following important items: $238,814,100, or 38% of all construction, for residential buildings: $151,398,500.
or 24%.for public works and utilities; $88,122,400, or 14%,for commercial
buildings: $42.181,800, or 7%, for educational buildings; and $33,879,300
or 5%,for industrial buildings.
Contemplated new work reported in June amounted to $729,178,900,
which was 14% less than the amount reported in May and 10% less than
that reported in June of last year.
Record June Total in New York Stale and Northern New Jersey.
The June total for building contracts in New York State and Northern
New Jersey, amounting to $175,098,300, was the highest June figure yet
recorded for this district. It was 26% over the amount reported in May
1927 and 38% over the amount reported in June 1926. Included in last
month's construction record were large contracts for road work and subway
construction.
Analysis of the June building record for this district showed the following
Items of importance: $73.653,800, or 42% of all construction, for residential
buildings; $55.104,200, or 32%,for public works and utilities; $19.764,200.
or 11%, for commercial buildings; and $7,860,100, or 5%, for educational
projects.
New construction started in the district during the first half of this year
amounted to $853,952,900, as compared with $895,979,600 for the corresponding six months of last year, the decrease being 5%.
Contemplated construction projects were reported in June to the amount
of $184,842,000. There were decreases of 11% from May of this year and
7% from June of last year.
New England.
The building and engineering contracts in New England amounted to
$35,705,300. This was a drop of 14% from May 1927 and of 8% from
June of last year. Last month's construction record included the following
Important classes of work: $16.557,300, or 46% of all construction, for
residential buildings: $5,738,900, or 16%, for public works and utilities;
$4,569,000. or 13%, for commercial buildings; and $2,609,000, or 7%, for
educational projects.
The first six months' construction total for the district was $204,256.700.
which was a decline of only 3% from the corresponding period of 1926.
Contemplated new work reported in New England last month reached a
total of $39,831,900. There were decreases of 4% from the amount reported in May of this year and of 22% from the amount reported in June
of last year.
Record June Total in the Middle Atlantic States.
Construction started in June in the Middle Atlantic States (Eastern
Pennsylvania, Southern New Jersey, Maryland, Delaware, District of
Columbia and Virginia) amounted to $73,834,400. This figure was the
highest contract total yet on record for any June. It was 32% ahead of
May 1927 and 39% ahead of June 1926. A theatre and office building in
Philadelphia to be built at a cost of 312,000.000 helped to swell the month's
total.
JULY
9 1927.]
THE CHRONICLE
155
The more important items in the June building record were: $24,795.500, that the industry has every right to expect the balance of
or 34% of all construction, for residential buildings; $19,627,900, or 27% this year to bring business in volume at least equal to that
for commercial buildings; $8,704,900, or 12% for public works and utilities;
of the year 1926. In part he also said:
and $6,672,400, or 9% for educational projects.
Experts in forecasting for a number of years have said that the conNew construction started in this district since the first of the year has
reached a total of $378,364,900„ being an increase of 20% over the amount struction industry has caught up with the demand and that a decrease
In business in this field must be expected. Somehow or other the yard
reported in the first six months of 1926.
Contemplated new work reported in the Middle Atlantic States in June stick which these men use does not correctly indicate what the future
will be. Doubtless, if they continue to predict a decline in contrend
This
figure
showed
a
loss of 27% from May
amounted to $105,689,000.
'of this year. However, there was an increase of 13% over the June 1926 struction, the day will come when their prophecies will be fulfilled, but
there seems to be little in the immediate future to cause us to expect a
figure.
reduction in shipments.
Pittsburgh District.
There has been, in practically all lines for years past, a gradual decrease
The total volume of contracts let in the Pittsburgh District (Western
is true of the cement industry. To illusPennsylvania, West Virginia, Ohio and Kentucky) during June amounted In the margin of profit, and this
company in the East received in April 1923 about
to $75,536,200. There were decreases of 3% from May 1927 and of 21% trate, a large cement
shipped
than it die for that shipped in the same
from June of last year. Analysis of the building record for June showed 21% more for the cement
coal cost more than than in 1927.
the following items of importance: $22,613,300, or 30% of all construction, month in 1927. It is true that in 1923
small economies have occurred in the
for residential buildings; $18,327,100, or 24% for public works and utilities; but labor received less. Some few
$8,030,000, or 11% for industrial plants; and $7,541,700, or 10% for prices which are paid for material, and improvements have been made
by many manufacturers in the use of labor; still the margin of profit is
hospitals and institutions.
Building and engineering work started in this district during the first six materially lower in all territories.
Manufacturing conditions are good everywhere. Labor is well paid
months of this year amounted to $407,362,900. There was an increase of
and contented—the only danger spot being the bituminous coal mine
4% over the amount reported in the first six months of last year.
have had but little influence on either
Contemplated new work reported in the Pittsburgh District in June strike, which, thus far, appears to
operations.
reached a total of $61.191.400. There was a loss of 34% from the amount prices or the volume of industrial
productive
capacity of the cement mills
that
the
agreed
generally
It
is
reported in May of this year, as well as a loss of 37% from the amount
in this country, already built and in operation, plus those that are certain
reported in June 1926.
to come into operation this year, is fully 30% more than the highest estiRecord June Total for the Central West,
mate of the consumption for the year.
The June total for building contracts let in the Central West, (Illinois,
The improvements which have been made in the manufacturing processes
Indiana,Iowa, Wisconsin,Southern Michigan, Missouri, Kansas. Oklahoma In industry in the last four or five years have been very great, and the
and Nebraska) amounting to $192,868,300, was the highest June figure yet capacity figures which have been used for those properties, and which
recorded for this district and was only a little over three million dollars have been in existence for a great number of years. will fall far short of
less than the amount reported in Aug. 1926 which was the largest contract the actual capacity of such properties to-day. Taking the United States
total recorded for any month. Last month's total was 27 %ahead of the as a whole, there is not less than a 40% excess of capacity over possible
May 1927 total and 34% over the total for June 1926.
shipments. However, money is cheap and abundant and scarcely a
Analysis of the June construction reported in the Central West showed week goes by that some aspiring community does not bring to attention
the following important classes of work; $79,124,600, or 41% of all con- its valuabe llimestone deposits and the sure road to wealth open to anyone
struction, for residential buildings; $40,307,700, or 21% for public works who will erect a cement mill at that point.
The manufacturers of portland cement in Europe continue to look upon
and utilities;$26,642,600. or 14% for commercial buildings;and $12.729.100,
the great market which has been developed in the United States with
or 7% for educational projects.
During the past six months there was $873,452,000 worth of contracts envious eyes, and those in this industry, who market a portion of their
let for new construction in this district, as compared with $706,225,300 for product along our seaboard, appreciate fully the menace of our proplerity
which lurks in the importation of this cement. Manufactured under
the corresponding period of 1926, the increase being 24%.
Contemplated new work reported in the Central West in June amounted labor conditions which are repugnant to all American ideals, enjoying
to $222,633,100. This figure showed losses of 16% from the amount a rate of freight which makes it but little more than ballast, the European
reported in May of this year and 4% from the amount reported in June manufacturer is able to put his cement on our docks at a price which is less
than the out-of-pocket cost to many American manufacturers. Unof last year.
fotunately, the cement industry is not the only one thus menaced, and
The Northwest.
The total volume of construction contracts let in the Northwest (Minne- an earnest effort is being made to teach the public generally what the use
sota, the Dakotas and northern Michigan) during June amounted to of imported products will ultimately mean to all industry in the way of
$8,343,500. There were decreases of 4% from May and of 20% from idle labor and lower wages. Those engaged in this work are finding en-.
June of last year. Included in last month's building record were the couragement.
A major factor in the present prosperity of the United States is the
following important items: $3,064,700, or 37% of all construction, for
residential buildings; $1,941.700, or 23%. for public works and utilities: high wage received by those who work. There has been, for a number of
past, a gradual increase in the difference between the cost of living
years
$1,084,300, or 13%. for educational projects, and $702,000, or 8%. for
and the earning capacity of the worker. While continuing to save a larger
industrial plants.
New construction started in this district during the first six months of portion of his earnings, as shown by the increasing deposits in our savings
this year amounted to $42,094.800, which was 22% under the amount banks,our workers still have left something beyond a mere living. Because
of this they demand better homes, automobiles, radios, broader education
reported in the first six months of last year.
Contemplated new work reported in the Northwest last month reached and many other things which fifteen to twenty years ago were considered
a total of $13.298,000. This figure was 20% over the figure for May of luxuries.
This high earning capacity of labor is of value to the prosperity of all
this year and 8% under the total for June 1926.
Industry, and when we see Federal, State and Municipal Governments
Southeastern States.
using money derived from taxes collected from American workmen to
Construction started in June in the Southeastern States (the Carolinas. buy imported cement with which to build our highways, streets, sewers
Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas and Lou- and public buildings, we must protest and protest vigorously.
isiana) reached a total of $50,725,300. This figure was 9% under May of
this year and 2% under June of last year. The more important items in
the June building record were $17,218,800. or 34% of all construction, for Indiana Limestone Co. Sees Signs of Another Record
public works and utilities; $13,383,800, or 26%. for residential buildings;
Building Construction Year.
$5,738,200, or 11%. for commercial buildings, and $4,810,000, or 9%,for
Signs all point to another record construction year running
industrial plants.
Building and engineering work started in this district during the past six a close second to, if not equalling, the unprecedented
months has amounted to $313,245,300, being a decrease of 27% from the volume of 1926, according to a nation wide survey anamount reported in the first six months of last year.
Contemplated new construction projects were reported in the South- nounced on July 8 by the Indiana Limestone Co. This is
eastern States in June to the amount of $71,422,600. This figure showed based on reports from several hundred cities and towns.
a gain of 31% over the amount reported in May of this year. However.
"Half the year closes with America's construction volume approximately
there was a loss of 23% from the amount reported in June of last year.
$3,440,000,000," says President A. E. Dickinson. "This compares with
$3.490,000,000 for the same period last year.
Texas.
"There is nothing on the horizon to indicate any marked falling off in
Texas had $20,366,700 in contracts for new building and engineering work
the remainder of the year. Desultory warnings
last month. This figure showed a loss of 6% from May,as well as a loss of construction activity for
six months ago of possible inflation have failed to materialize. For some
18% from June 1926. Analysis of the June construction record showed
time the pendulum has been swinging to a well balanced condition in the
the following items of Importance: $6,621.100, or 33% of all construction,
building industry. Continued activity in this field has been a major
for residential buildings; $5,579,300, or 27%, for commercial buildings;
influence
in the country's prosperity.
$4.055,200. or 20%. for public works and utilities, and $1,553,600, or
"The momentum of the better building development is indicated by the
8%,for educational projects.
fact that while the dollar volume of residential structures has forged ahead
During the past six months there was $115.263,800 'worth of contracts
of last year's rate, the number of projects is smaller.
let in Texas, being a decrease of 7% from the corresponding six months
"Commercial and public works construction have chalked up large
of 1926.
and will continue their stride for some time to come. On the other
Contemplated new work reported in this State in June amounted to figures
hand, some sections show a slight recession in educational and industrial
$30,262,800. This figure was slightly over the amount reported in May building.
of this year and was 13% over the amount reported in June of last year.
"Chicago's amazing building growth has averaged approximately $38.000.000 a month so far this year as against $30,000,000 for the corresponding
Time for "Abatement of Prosperity Again Postponed, period last year. The entire midwest Is going ahead at a rapid pace.
"In the East, the suburban exodus is developing a renewed residential
According to G. S. Brown, President of the
activity. In New York and Philadelphia, all types of construction are
Portland Cement Association—Conditions
showing increases over last year. The expected settlement of labor difficulties is having a favorable effect on contract awards.
in Cement Industry and Building
"The southeast is holding an even pace with a good showing in educaTrades.
tional, industrial and public works construction. New England has been
The date for the abatement of building operations has spotty from month to month.. In the northwest district, construction
activity has been well above the average for the first six months. Industrial.
been once more postponed, according to G. S. Brown, residential
and educational building continues strong. A healthy situation
President of the Portland Cement Association. Mr. Brown prevails in California and Texas.
"In
point
of valuation of building permits issued in twenty principal
the
of
in
cement
and
spoke
business conditions
industry
New York leads with Chicago, Detroit, Los Angeles, Philadelphia,
building trades and commented on the national outlook cities,
San Francisco, Milwaukee, Boston, Cleveland, Pittsburg, Baltimore,
at the annual spring meeting of the cement manufacturers Seattle, Buffalo, St. Louis, Indianapolis, Minneapolis, Kansas City. New
at New York recently. While it is true, he said, that there Orleans, Atlanta. Dallas following in the order named.
"A glance into the future of growing America, whose annual population
are sections of the country where demand for cement is Increase
amounts to close to 2,000,000 people, is all that is necessary to
somewhat less than in the same period a year ago, it seems visualize the healthy condition of the construction industry."
156
THE CHRONICLE
[Vol,. 125.
Grainand grain products loading totaled 40,682 cars, a decrease of
2,214 cars under the same week in 1926 but 4,166 cars above the same
period in 1925. In the western districts alone, grain and grain products
loading totaled 27,117 cars, a decrease of 1,613 cars below the same week
last year.
Livestock loading amounted to 27,081 cars, an increase of 457 cars over
the same week last year but 98 cars below the same week in 1925. In
the western districts alone, livestock loading totaled 19,934 cars, a decrease of 261 cars under the same week last year.
Forest products loading totaled 66,842 cars, 7,474 cars below the same
week last year and 4,150 ears under the same week in 1925.
Ore loading totaled 65,896 cars, 5,299 cars below the same week in 1926,
but 2,954 cars above the corresponding period two years ago.
Coke loading amounted to 10,389 cars, a decrease of 1,096 cars under the
same week in 1926 but 1,011 cars above the same period in 1925.
All districts reported decreases in the total loading of all commodities
compared with the corresponding period in 1926 except the Pocahontas, but
all reported increases, except the eastern and southwestern compared
STATEMENT OF POSTAL RECEIPTS AT FIFTY SELECTED OFFICES 'with the corresponding period in 1925.
FOR THE MONTH OF JUNE 1927.
Per d. Per d. Per ct.
1927 1926 1925
June
Over
Over
Over
Bank of Montreal's Crop Report.
June
Increase. 1926. 1925. 1924
1926.
1927.
OfficesIn its crop report dated June 30, the Bank of Montreal
New York, N. Y-- 6,149,844.77 5,822.598.93 327,245.84 5.62 5.75 14.28
4,816,559.81 4,751.570.37 64,989.44 1.37 3.79 19.11
Chicago. Ill
1,601,133.82 1,587.048.37 14,085.45
Philadelphia
.89 7.49 19.37 thus summarizes general crop conditions in the Dominion,
1,388,368.70 1,304,268.53 84.100.17 6.45 7.66 11.51 based on advices received from
Boston. Mass
its branches:
18,314.70
1.82
1,007,742.03
1.026,056.73
4.58 10.92
St. Louis. Mo
864,279.79 *18,727.02 *2.17 14.73 14.36
Kansas City. Mo_. 845.552.77
Weather conditions that are almost ideal are continuing throughout the
833,756.01 37,153.76 4.46 13.32 21.47
Detroit, Mich
870,909.77
731.140.12 39,664.74 5.42 6.18 11.98 Prairie Provinces, and as the result of rapid growth the late seeding of
Cleveland, Ohlo
770,804.86
702,953.15 63,450.22 9.03 8.64 10.49 wheat has already been practically offset over large areas. There have
Loa Angeles, Cal_ _ _ 766,403.37
692,424.42
36.960.96 5.07 3.87 16.81 been some isolated hall storms, but with favourable conditions recovery
729,385.38
San Francisco, Cal_
658,033.46 41.004.88 6.23 6.53 9.78 from the damage is probable.
699,038.34
Brooklyn, N. Y
In the Province of Quebec intermittent
576.652.06 26,429.20 4.58 4.61 12.04
603,081.26
Pittsburgh, Pa_
590.888.91 *12,593.57 *2.13 3.67 22.32 heavy rains and cold weather have further retarded farming operations.
Cincinnati,Ohio- 578.293.34
508,172.14 *29.785.16 *5.88 4.22 3.82 and necessitated the reseeding of low-lying lands in many districts, but all
Minneapolis, Mlnu. 478,386.98
549,996.05 *5,369.86 ..98 20.11 *2.32 crops are now progressing favourably. Throughout Ontario good weather
544,626.19
Baltimore. Md
414,825.90 41.780.07 10.07 2.68 10.51 has prevailed during
456,605.97
Milwaukee, Wis
the past two weeks, and in the Eastern portion where
4,537.65 1.03 12.98 10.80
422,089.01
Washington, D. C. 426,448.66
357.168.93
2,317.55
359,486.48
.65 3.06 13.48 crops were backward, conditions have improved. All grain crops have
Buffalo, N.Y
350,375.93 12,719.88 3.63 3.29 9.09 made good progress. In the Maritime Provinces favourable weather, with
St. Paul. Minn-. 363,095.81
380.780.06 *2,723.50 •.72
.34 19.31 warm rains, has resulted in bringing growth up to the average. In
Indianapolis, Ind- 378,056.56
British
306,889.48 33,627.97 10.96 7.31 14.62
340,517.45
Atlanta, Gs
325,875.80 23,721.36 7.28 8.15 21.27 Columbia steady showers have improved the crops, which generally promise
349,597.16
Newark, N. J
fair
yields.
297:526.64
296,690.59
836.05
.28 4.95
Denver, Colo
.32
308,521.35
301,664.12
6,857.23 2.27 14.28 11.42
Dallas, Texas
256,731.12 17,517.87 6.82 1.11 16.93
274,248.99
Seattle, Wash
236,892.21
240,076.35
3,184.14 1.34
Omaha, Nab
.40 8.82 Advance in General Level of Farm Prices in June248,028.33 *6.159.79 *2.48 4.82 19.88
Des Moines, Iowa.. 241,868.54
Effect of Mississippi Flood.
235,798.39
238,772.10
2,973.71 1.28 8.58 8.45
Portland, Oregon
232.957.98
Louisville. Ky.- 235,485.31
2,527.33 1.08 7.43 9.61
The general level of farm prices advanced four points in
Rochester, N.Y
231,806.31
235,652.74 *3,846.43 01.63 6.67 15.56
Columbus. Ohio
235,931.12
218,344.05 17,587.07 8.05 1.27 13.99
234,012.87 *19,777.11 •8.45 6.94 15.16 June, from 126 to 130, the largest advance made in a single
New Orleans. La- 214,235.76
189,931.41
193.465.44 *3,534.03 •1.83 .14.71 12.58 month since March 1925, according to the
Toledo, Ohio
Bureau of AgriRichmond, Va_
172,045.81
169,079.01
2,966.80 1.75
.38 19.45
Providence, R.I_
168,206.95
155,940.34 12,266.81 7.87 3.73 14.33 cultural Economics, United States Department of Agricul160,058.84 14,355.56 8.96 9.27 12.17
174,414.40
Memphis, Tenn.._
Dayton. Ohio
201,093.28
178,059.01 13,034.27 12.94 20.39 8.35 ture. The increase was caused by an advance of 13 points
173,707.88
Hartford, Conn
181,308.21
7.600.33 4.38 11.33 13.69 In the grains'
index, 43 points in the fruits and vegetables'
144,758.14
2,365.56 1.63 1.05 13.25
Nashville. Tenn_ 147,121.70
142,868.85
2,096.50 2.03 11.73 12.81 index and 6 points in the cotton and cottonseed index.
Houston, Texas_.... 145,775.35
Un131,757.93
Syracuse, N.Y...... 134,274.28
2,516.35 1.91 6.87 15.92
128.020.35 22,703.78 17.73 3.09 13.89 der date of July 1 the Board adds:
New Haven. Conn_ 150,724.13
134,671.67
4,166.08
138.837.75
3.09
Rapida.MIch
Grand
5.59 18.82
The increases In farm prices are attributed largely to adverse weather
123.715.58 18.321.45 14.81 13.01 14.83
142,037.03
Akron, Ohio
146,924.06
1,858.10 1.28 39.40 20.12 conditions this spring. The Mississippi flood affected cotton prices and
145.065.96
Fort Worth, Tex
105,836.17
118,378.86
12,542.69 11.85 •2.64 27.73 some of the other farm products. Cotton mill
Jersey City, N. J
activity, together with heavy
95.425.19
103,719.46
8.294.27 8.69 2.05 6.93
Springfield. Mass
108,332.81 '1,522.42 1.40 2.62 11.39 export movement of hogs to market in response to higher corn prices and
Salt Lake City.0tah 109.855.23
99,412.92 *8,987.22 *9.04 29.82 29.11 the increased world production of pork has shown their influence in the
90.425.70
Jacksonville, Fla
105,431.21
92,980.61 12,450.60 13.39 3.00 8.67 index of meat animals.
Worcester, Mass
The firm price of potatoes and the f.o.b, and market prices show opposite
29,681,229.47 28.719,454.55 961,774.92 3,35 6.42 14.72
Total
trends for May and June. The market price declined while the farm
•Decrease.
March 1927 over March 1926, 3.39%: April 1927 over April 1926, 2.91: May 1927 price advanced. This upward movement in the farm price Is due to the
over May 1926, 2.72%.
change from the old to the new crop basis.
Corn again advanced sharply breaking all records back to 1909
for gains
of June over May. The
amounts to about 18% over the previous
Loading of Railroad Revenue Freight for the Half-Year month and Is about 23%increase
above the 1910-14 average for the month and
the Heaviest on Record.
• approximately the same degree above June 1926. The rise in the prices
of corn is attributed to unfavorable weather and late plantings.
The corn
Loading of revenue freight for the first 26 weeks this year market has been highly
sensitive to weather reports.
Wheat prices advanced in all sections of the country. The United
totaled 25,326,726 cars, the largest number ever loaded durStates
price was approximately 6% above last month. Bad weather
and
ing any corresponding period on record, according to re- average
prospects of a smaller crop seem to have been the dominant factors
ports filed on July 5 by the carriers with the Car Service price increase in the month. In Texas where some of the new crop in the
is coming
Division of the Amertcan Railway Association. This was on the market the price advanced 9 cents over the previous month while
last year the price dropped 4 cents from May to June. The price
movement
an increase of 317,575 cars over the total number loaded this year Is more comparable to
1925 when the gain amounted to 7 cents
during the corresponding period in 1925. Loading of reve- In the month.
Increase in Postal Receipts at Fifty Selected Cities
in June.
Postal receipts at fifty selected cities throughout the
country for the month of June 1927, showed an increase of
$961,774.92 or 3.35% over those for the same month in 1926,
according to figures made public July 7 by Postmaster General New. The total receipts for June 1927 were $29,681,229.47, as against $28,719,454.55 for the corresponding
month of 1926. New Haven, Conn. with an increase of
17.73% led the fifty cities in the percentage of increase.
Akron, Ohio, came next with an increase of 14.81% while
Worcester, Mass, was third with an increase of 13.39%.
The summary follows:
nue freight this year compared with the two previous years
Brookmire Economic Service Expects Business Exfollows:
1926.
1927.
1925.
pansion This Fall-Conflict of Elements Seen
4,456,949
4,428,256
4,524,749
Five weeks in January
With Victory for Favorable Factors.
8,677,332
3,823,931
3,623,047
Four weeks in February
3,702,413
3,877,397
4,016,395
Four weeks in March
An economic conflict will occur in the next few months
4,791,006
4,890,749
4,710,903
Five weeks in April
when three unfavorable factors for business will war
4,145,820
3,869,306
4,096,742
Four weeks in May
8,965,872 against three favorable ones, the Brookmire Economic Ser4,089,340
3,974,160
Four weesk in June
vice, Inc., states in a forecast of fundamental conditions.
25,009,151
25,326,726
24,328,490
Total
The economists anticipate a victory for the favorable eleFor the week of June 25 reports showed 1,018,206 cars ments, as they
expect that the current slump in business
loaded with revenue freight. This was an increase of 1,855 will be followed
by expansion before the close of the year.
cars over the preceding week, increases being reported in the Their forecast
says:
loading of all commodities except forest products and merRanged on one side are the favorable factors:the expected gain in
chandise and less than carload lot freight. Compared with an improved urban purchasing power, and a persistent rise in thebuilding
"favor
able"
the corresponding week last year, the total for the week of which balance of trade; on the other side are the reductions of freight traffic
will follow from short crops,competition In the motor industry and
the
June 25 was a decrease of 37,156 cars, but an increase of huge expansion in speculation and new financing.
After a decline in building and construction contracts during the early
25,033 cars over the corresponding week in 1925. We annex
months of 1927,the economists point out that we have had a sharp
upswing
further details as follows:
during March, April, May
first half of
Miscellaneous freight loading for the week of June 25 totaled 393,078
cars, an increase of 1,558 cars over the corresponding week last year and
24,236 cars over the same week in 1925.
Loading of merchandise and lest; than carload lot freight for the week
totaled 257,544 cars, an increase of 270 cars over the same week last year
and 1,345 cars over the corresponding week two years ago.
Coal loading amounted to 156,694 cars, a decrease of 23,358 cars under
the same week last year and 4,431 cars below the same period two years
ago.
and the
June. The slump in contract placing during the first quarter of the year resulted in a small decline
in actual construction which is now being made good. There is every reason
to believe that contracts now being let will have a tendency to create
more than a seasonal rise this fall. Combating this gain will be the increased competition in the motor industry which the introduction of the
new Ford model will incite.
Recently urban purchasing power seems to have decreased along with
the actual level of building and construction work. However, retail sales
of all kinds are still very much less affected by tho recession than are the
JULY 9 1927.]
THE CHRONICLE
157
producing industries. This is the same developments which has occurred 000 between April 27 and May 25,but on the latter date they were $28,449.so often in the last few years—a slowing up of productive Industry while 000 greater than on May 26 1926. Federal Reserve bank loans to member
banks increased 51.661,437 between April 30 and June 15,due to the heavier
consumption gets rid of slightly excessive inventories.
Import-export trade, after allowances for seasonal variations and for demand for credit incident to the financing of agricultural operations, as
the trade balance tendencies which are developed in our position as a creditor evidenced by the fact that the increase was due entirely to the borrowings of
nation, is showing a ratio of exports to imports higher than the normal or country banks. At the reserve city banks a decrease occurred in both loans
average expectation. Such a condition agrees with the other two factors in and borrowings from the Federal Reserve Bank. That a large volume of
indicating that more than the usual seasonal rise is to be expected in business funds in this district is seeking an investment outlet is shown by the fact
that the cash subscriptions to the June 15 issue of 3%% United States
this fall.
Treasury bonds sold at 100% amounted to $23.858,000, against which
allotments to the extent of $11.018,400 were made. Exchanges at the close
Business Conditions in Atlanta Federal Reserve District of business on June 17 totaled $5.082.550.
Tradeand
Retail
of
Wholesale
Volume
The business mortality rate reflected a distinct improvement during May.
—Smaller
The number of failures was not only smaller than during either the previous
-Increase in Production of Cotton
month or the same month last year. but was the smallest of any month since
Yarns and Cloth.
last September. While the indebtedness of defaulting firma was substanThe Federal Reserve Bank of Atlanta reports, in its June tially larger than in May last year, it was the smallest reported for any
month during the current year.
30 "Monthly Business Review," that "agricultural conditions
Construction activity as measured by the valuation of permits issued at
In May and the first week of June were still unfavorable in principal cities was 11% greater than in the previous month but 26% lees
than in the corresponding month last year. Although shipments and new
most parts of the District." Continuing the Bank says:
orders for lumber were slightly greater than in April. they were substantially
unstill
were
June
of
week
first
the
Agricultural conditions InMayand
below those for May 1926. The production of cement reflected only miner
favorable in most parts of the district. The flood situation In the lower changes but shipments of cement were the heaviest recorded in several years
Mississippi valley, which is now improving, continued to be the most important feature of the agricultural situation. The long drought in Florida
and Georgia was broken the second week in June by rains which brought Review of Business Conditions In Pacific-Southwest
mprovement in agricultural prospects.
By First National Bank of Los Angeles.
The volume of retail trade in the sixth district in May was smaller than
In May last year. and sales at wholesale were also in smaller volume. SavGeneral business in the Pacific-Southwest territory during
ings deposits at the end of May, however, were 4.8% greater than a Year
continued at about the May levels. the volume of
June
in
than
less
3.3%
only
were
May
in
ago, and debits to individual accounts
May 1926. A somewhat smaller demand for credit in the district reflected trade has remained close to normal, although showing a
in a decrease,compared with the corresponding report date last year,in loans
smaller gain over last year than have previous months.
by member banks in the principal cities of the district, and in a smaller
developments to materially
total of discounts by the Federal Reserve Bank of Atlanta for its member While there have been no recent
banks. Failures in the sixth district declined in co nparison with April. alter the satisfactory situation, on the whole the second
but were greater, both in number and in liabilities, than in May last year.
1927 has registered a somewhat greater than usual
Decreases compared with May 1926 were shown in both but ding permits quarter of
of the year.
and in contracts awarded. Building permits issued at 20 reporting cities reduction in activity from the first quarter
in the district averaged 40.5% less than in May last year, and contracts This is the introductory paragraph of the Monthly Summary
and in contracts awarded. Building permits issued at 20 reporting chit)
the Pacific Southwest compiled by the
in the district averaged 40.5% less than in May last year, and contracts of Conditions in
awarded In the sixth district during May showed a decrease of 22.7% com- Research Department of The First National Bank of Los
pared with May last year. Production during May by mills manufacturing
Angeles, the Pacific-Southwest Trust & Savings Bank and
cotton yarns and cotton cloth was 10.6%. and 16.1%. respectivey. greater
and released for publication
than in May 1926. Coal mining in Alabama and Tennessee has declined,in the First Securities Company,
response to a slackening in demand, and pig iron production in Alabama July 5. The summary continues in part:
what smaller than In April, or in May last year. Receipts of both turpentine
Bank clearings in Los Angeles City for June were practically equal to
and rosin are considerably greater this season than last, because of the May, 1927 and June, 1926 totals, showing a gain of about one per cent in
more favorable weather in late winter and early spring, and the drought each Instance. Bank debits for the first three weeks of the month were
which was beginning to affect production, has been relieved by general rains slightly less than in May but nearly 5% greater than the same period of
the middle of June.
last year.
Retail Trade.
Retail and department store trade has been slower, due largely to cool
of new
The volume of trade at retail reported to the Federal Reserve Bank weather. Industrial operations have remained steady. The value
production showed a
of Atlanta for May, and for the first five months of 1927, compares un- building permits recorded a moderate decline. Oil
the result of
favorably with corresponding periods last year, and the turnover of stocks moderate decline. Oil production showed a small increase,
of merchandise has been at a somewhat slower rate. May sales by 49 activity at the Seal Beach-Alamitos field.
or April but
May
in
than
amount
in
Mercantile failures were greater
reporting points. For the year through May aggregate sales have been
while seasonally
1.5% smaller than for the same period last year. Stocks of merchandise less than in the winter months. Hotel and tourist trade,
situation is
on hand at the end of May were 6.5% smaller than a month earlier, but were quiet, is still well above recent years. The financial and credit
investment
3.8% greater than at the end of May 1926. Index numbers of sales during strong, with an ample supply of funds for commercial and
May were higher for Atlanta, Chattanooga and Nashville than for April, purposes.
favorable to
The warmer weather during the latter part of June was
and were higher than for May last year at Atlanta, and Nashville. Outalthough
standing orders at the end of May were 7.7% greater than a month earlier, agricultural developments. Crops are generally in good condition,
Shipments of citrus
but were 14.7% less than at the end of May 1926. Accounts Receivable the season is two or three weeks late on the average.
conat the close of May were 4.3% greater than for April, and 4.8% greater fruits have been larger than last year. The markets strengthened
lust begun.
than for May ast year. May collections were 1.3% greater than in April. siderably during the month. The deciduous fruit harvest has
are good.
and 6.8% greater than in May a year ago. The ratio of collections during with prices uncertain but less than last season. Grape prospects
May to accounts outstanding and due at the beginning of the month. Indicating a crop slightly greater than in 1926.
setting of nuts
for 29firms, was 36.0%;for April this ratio was 36.2%.
The walnut outlook is especially promising with a heavy
recent
in all districts. Beans and cotton are in excellent condition. The
growers.
improvement in prices of these products is encouraging to the
Imperial
Good crops of grain are now being harvested. Shipments of
Business Conditions in Dallas Federal Reserve District Valley cantaloupes have been large since the middle of the month with late
market
livestock
—Breaking of Drought Improves Outlook
prices declining sharply from previous good levels. The
remains strong.
for Agriculture and Business.
The breaking of the severe drought which covered an exDeferred
tensive area of the Dallas Federal Reserve District was the Cut in Salaries in Motion Picture Industry
1.
August
Until
outstanding development during the past 30 days and places
The cut in salaries proposed by motion picture producers
a decidedly brighter outlook upon agricultural and business
prospects, says the Federal Reserve Bank of Dallas in its has been deferred until August 1, pending a test of the
"Monthly Busienss Review" dated July 1. The Bank's sum- workers' plans to reduce production costs in other ways than
through salary reductions. It is stated that objection to the
mary for the month also contains the following:
principally by those()
Extensive areas In south and west Texas and eastern New Mexico had proposed wage reductions was voiced
received little worthwhile rainfall since last October. In these sections small under contract, such as stars, directors, actors, writers and
grain crops had deteriorated rapidly, the planting and growth of row crops
was retarded, and ranges and livestock were suffering. The rains revived
the ranges, replenished the supply of stock water and enabled the farmers
to proceed with agricultural operations. Widespread Improvement should
be noticeable in a short time. In other parts of the district the rains came
in time to save the corn crop and stimulated the growth of other crops.
Fair to good feed crops are now practically assured and the condition of
cotton in the old cotton territory is generally good. Due to the light rainfall during May,the farmers were able to make rapid progress with planting
and cultivation and have to a large extent overcome the handicaps of a late
start. Harvesting of small grains Is well under way and indications are
that the yield this year will be light, as the rains came too late to be of much
benefit.
The distribution of merchandise at wholesale and retail reflected largely
the effects of seasonal influences. Department store sales were 3% greater
than in April and were practically the same as during May 1926. The volume of wholesale trade declined seasonally as compared to April and continued to fall short of that during the same month of last year. While
business appears to be somewhat spotted, confidence in the soundness of
the business structure is evident and wholesalers and retailers generally are
optimistic regarding the future prospects. Debits tot ndividual accounts at
17 centres were 5% less than In the previous month but exceeded those in
May 1926 by 8%.
The past month witnessed a heavy withdrawal of deposits and an increase
n the demand for credit. The deposits of member banks declined 816.623:
others who were asked to consent to a 10% reduction. Th
proposed cuts were referred to in these columns June 25,
page 3700. On June 26 Associated Press advices from
Hollywood, Calif., said:
The Motion Picture Branch of the Actors Equity Association announced
to-day that it would ask all continuity writers, actors and directors to
decline to sign the proposed slary cut agreement with film producers until
the equity organization and the Motion Picture Academy of Arts and
Slences have made a canvass of the situation. The equity officials said
the investigation would include questioning of producers regarding the
purpose of the proposed 10% wage reduction.
The Equity announcement followed a meeting of the film organization
last night. Conrad Nagel presided and Frank Gilmore of the New York
Equity Organization was present.
It was declared by Equity officials after the meting that the actors were
not definitely opposing the decrease, but want to know the reason and
would consent if the reason satisfied them.
The Motion Picture Equity includes but a small part of the film actors,
but efforts were said to be under way to expand it.
With reference to the companies which agreed on June 30
to defer the wage cuts until August 1, June 30 advices
(Associated Press) from Hollywood, said:
158
THE CHRONICLE
[Vol,. 125.
In a communication sent to the Motion Picture Academy of Arts and with this time a year ago. the softwood reports show that
Sciences, which represents the actors, directors, technicians, producers and
writers, twelve of the largest producers accepted the proposal that the orde s and shipments are running about 10% less. The
effects of the holiday are particularly noticeable in the
workers themselves attempt to cut production costs.
The companies signing the acceptance were John M. Schenck Pro- hardwood industry, where 153 mills reported
the preceding
ductions, Cecil B. De Mille Pictures Corp., William Fox Studios, Christie
Film Co., Inc., Metropolitan Pictures Corp., Samuel Goldwyn, Inc.. week, continues the Association, appending the following
Metro-Goldwyn-Mayer Studios, Mack Sennett Comedy Corp., Jack White data:
Comedy Corp., F. B. 0. Studios, Universal Pictures and First National
Unfilled Orders.
Pictures Corp.
The report of the unfilled orders of the Southern Pine Association was
Paramount-Famous Players-Lasky and Warner Brothers indicated they not received in time for
publication. For the 83 West Coast mills the
would make separate replies to the academy.
unfilled orders were 293,210,793 ft., as against 274,887,606 ft. for 72 mills
The plans of the Actors' Equity Association for the organization of players a week earlier.
in motion pictures will be carried forward, according to Conrad Nagel of
Altogether the 281 comparably reporting softwood mills had shipments
the Film Society of Equity.
103%, and orders 100%, of actual production. For the Southern Pine
The formation of an 'emergency cabinet' at the Para- mills these percentages were respectively 96 and 96: and for the West Coast
mount-Famous Players-Lasky Studios to study problems mills 111 and 101.
Of the reporting mills, the 263 with an established normal production
growing out the present movie wage dispute was announced for the week of 189,762,384
ft., gave actual production 89%, shipments
by Jesse L. Lasky, First Vice President of the film concern 91% and orders 88% thereof.
The
following
table
compares
the lumber movement, as reflected by the
according to Associated Press accounts from Hollywood reporting mills of seven
softwood, and two hardwood,regional associations,
from which we also quote the following:
for the three weeks indicated (000 omitted):
In the meantime the studio will join with other leading concerns in deferring the proposed 10% wage cut until Aug. 1.
Corresponding
Preceding Week
The body,composed of heads of the several departments, was formed folPast Week,
Week 1926.
1927 (Revised).
lowing a meeting of thirty men and women representing players, directors,
Softwood Hardwood Softwood Hardwood Softwood Hardwood
technicians and writers.
The Lasky Studios, as well as Warner Brothers, did not sign the pro- Mills*
281
86
329
101
294
153
ducers' reply yesterday to the request from the Motion Picture Academy Production
178,982
11,101 213,707
16,472 191,883
18,355
184,182
11,624 228,601
16,182 192,985
of Arts and Sciences, which proposed that the workers themselves launch Shipments
20,197
178,714
10,946 225,928
15,890 195,342
16,070
a campaign to cut production costs in return for a delay in the salary slash. Orders
*Fewer West Coast mills are reporting this year; to make a lowance for this add
Warner Brothers had announced previously that the wage cuts would not
27,000,000
to
production,
shipments
and
27.000,000
to
26,000,000
to
orders in
be placed in effect at their studios.
comparing softwood with last year.
The emergency cabinet, the names of whose members were not given
Because of considerably smaller number of West Coast mills making
out, pledged themselves to institute policies and methods by Aug. 1 which
would solve the problem of excessive costs. Weekly meetings of the cabi- statistical reports this year, cumulative figures comparing production,
shipments and orders for 1927 and 1926 are discontinued.
net are to be held'.
A separate reply on behalf of the Paramount Studios was sent the Arts
Reports from the mills of the California White and Sugar Pine Association
and Sciences Academy,in which it was stated that "consideration was being were not received in time for publication.
given to existing conditions in the film induAry and to the consequences that
West Coast Movement.
must necessarily follow if they are permitted to continue."
The West Coast Lumbermen's Association wires from Seattle that new
Twelve producers yesterday notified the Board of Directors of the
academy that they would accede to the academy's recommendation that business for the 83 mills reporting for the week ended July 2 was 1% above
hitherto ordered salary cuts of from 10 to 25% be withheld until Aug. 1. production and shipments were 11% above production. Of all new business
In the meantime the workers themselves, through the academy, promised taken during the week, 38% was for future water delivery, amounting to
to attempt to raise their efficiency to the point where wage reductions would 26,823,271 feet, of which 12,301.076 feet was for domestic cargo delivery
be unnecessary.
and 14,522,195 feet export. New business by rail amounted to 40,230.675
The apparent victory of the workers failed to make any change, how- feet,or 56% of the week's new business. Thirty-eight per cent of the week's
ever, in the campaign for members launched by the motion pictures sec- shipments moved by water,amounting to 11,038.275 feet, of which 20,920,tion of the Actors' Equity Association immediately fololwing the announce- 127 feet moved coastwise and intercoastal and 8,946,248 feet export. Rail
ment that pay checks were to be pruned by the producers. Conrad Nagel shipments'totaled 43,816,775 feet. or 56% of the week's shipments, and
Chairman of the section, declared that 800 motion-picture players, including local deliveries 4,375.016 feet. Unshipped domestic cargo orders totaled
virtually all the screen stars, now were Equity members, although the 102,123,192 fete,foreign 85,692,286 feet and rail trade 105,395,315 feet.
membership of that section had been negligible until but a few days ago.
Southern Pine Reports.
As indicated in the item in our June 25 issue, the retrenchDetailed reports of the Southern Pine Association of New Orleans were
ment embraced salary reductions of 10 to 25% for execu- not received in time for publication. New business taken during the week
amounted to 56,180,936 feet (previous week 59.172,576); shipments. 56,tives, department heads and producers.
180.936 feet (previous week 50,961,040); and production, 58,779,406 feet
(previous week 54.502.145).
The Western Pine Manufacturers' Association of Portland, Ore., with
New Models of Automobiles and Price Announcement seven fewer mills reporting,shows a heavy decrease In production,a notable
somewhat in advance of that reThe Velie Motors Corporation of Moline, Illinois, has decrease in shipments with new business
ported for the week earlier. Thirty identical mills show an increase of 30%
just brought out two new models in its Standard Six line,— in orders,a decrease of3% in shipments and a decrease of 13% in production.
The California Redwood Association of San Francisco, Calif., with one
a roadster and a five-passenger de luxe sedan. Like other
reporting, shows production about the same, a substantial inStandard Six models, the new Metropolitan sedan is mounted more mill
crease in shipments and a 50% decrease in new business.
on 112-inch wheelbase, has hydraulic four-wheel brakes,
The North Carolina Pine Association of Norfolk, Va., with three fewe
4inches of spring equip. mills reporting, shows slight decreases in production and shipments and
heat indicator on the dash and 1823
business about the same as that reported for the preceding week.
ment. It is furnished fully equipped with three-bar bumpers new
The Northern Pine Manufacturers' Association of Minneapolis, Minn.,
front, bumperettes on rear, cowl ventilator, automatic reports.nominal decreases in production and shipments, and 50% increase
windshield wiper, rear vision mirror, stop light, spare tire, In new business.
The Northern Hemlock and Hardwood Manufacturers' Association of
tube and cover and radiator emblem.
Oshkosh, Wisc.(in its softwood production), with six fewer mills reporting,
dump
trucks
have
been
Three new types of four-cylinder
shows notable decreases in all three items.
added to its line by the International Harvester Co. They
Hardwood Reports.
are chain-drive models in *4,354 and 5-ton capacity, with
The Northern Hemlock and Hardwood Manufacturers' Association of
4 speeds forward and 1 reverse. In the larger models 74-C Oshkosh. Wisc.,reported from nine mills (six fewer mills than reported for
previous week) considerable decreases in production and shipments and
and 104-C trucks, in addition to the reduction gear type the
a nominal decrease in orders.
provides
of drive, the live axle has a two-speed range, which
The Hardwood Manufacturers' Institute of Memphis, Tenn., reported
from 77 mills (61 fewer mills than reported for the week earlier) heavy apan exceptionally wide choice of power applications.
parent decreases in all three factors. The normal production of these units
Reports from Cleveland, Ohio, on July 8 state that the is 12.936.000 feet.
Jordan Motor Car Co. has added an open sport car to the
Litte Custom line Five wire wheels, extra tire, tire cover
and front and rear bumpers are standard equipment. Pro- West Coast Lumbermen's Association Weekly Report.
Seventy-two mills reporting to the West Coast Lumberduction at the factory has been stepped up to take care of
men's Association for the week ended June 25 manufactured
increased summer demand for an open car of this type.
76,043,487 feet, sold 78,434,732 feet and shipped 87,213,374
feet. New business was 2,391,245 feet more than production
Lumber Industry Reports Continued Curtailment.
and shipments 11,169,887 feet more than production.
The tendency toward restriction of activity in the lumber
COMPARATIVE TABLE SHOWING PRODUCTION, NEW BUSINESS,
industry has been emphasized by an extension of the custoSHIPMENTS AND UNFILLED ORDERS.
June 11.
June 18.
Week Ended—
some
mills
June 25.
June 4,
mary Fourth of July suspension. This year
72
Number of mills reporting
70
69
72
began to shut down a week or two weeks before the Fourth, Production (feet)
76,269,005
72,578,949
76,043,487
63,100,682
71,515.998
78,864,499
New business (feet)
78,434,732
52,212,736
and plan to extend the customary semi-annual repair and Shipments
78,676,919
80,774,947
(feet)
87,213,374
62,208,926
balances:
overhaul period for two or three weeks afterwards. On this Unshipped
97,831,276
Rail (feet)
99,134,548 100,311,478
101,260,416
account, and the interference of the actual holiday with the Exp
Domestic cargo (feet). 98,645,948 107,168,212 121,815,943 116,119,077
orts (feet)
79,351,238
72,821,862
71,574,541
74,981,242
reporting of statistics, there are both apparent and actual
284,350.728
293,772,353 288,005,094
(feet)
Total
274.887,606
decreases in production, shipments and orders, as compared
1926.
1925.
1924.
First 25 Weeks of—
1927.
with last week, says the National Lumber Manufacturers Average
105
number of mills_
118
126
76
(feet)
1,828,876,290 2,616,520,194 2,565,967,212 2,457,905,067
Association, basing its conclusions on reports from 281 soft- Production
1,930,542,487 2,733,537,158 2,613,625,292 2,327,881,738
New business (feet)
1,902,309,006 2,699.164,376 2,644,923,566 2,538,211.349
wood lumber mills and 86 hardwood mills. As compared Shipments (feet)
.Tui.Y 9 1927.]
THE CHRONICLE
159
The short skirt originally started because the long skirt was too long, and
Movement For Organization of Woolen Industry—
common-sense, which is seldom back of the trend in fashion, helped a wellCommittees on Production and
designed effort to change the style toward shorter skirts. But perhaps the
greatest impetus toward shorter skirts came from the attractive advertiseDistribution Created.
ments that have appeared for several years in every magazine read by
Before a gathering of some 300 executives and selling women and on thousands of billboards, showing, for the purpose of emphasis,
ultra short skirts and peculiarly attractive hose. Then, added to that,
agents of woolen and worsted mills at the Hotel Astor, New
shoe manufacturers, at their Rochester convention three years ago,
York, on June 23, A. D. Whiteside, President of the National the
agreed that it was decidedly to their interest to keep short skirts in vogue,
Credit Office, recommended the formation of a co-ordinat- and so they keep that idea incessantly in the minds of women by showing
ing board, through which controlled production and regu- the good-looking models wearing short skirts, trim hosiery and smart
shoes. And then the furriers were not doing well so they influenced manulated distribution would be effected. The recommendation facturers to make unusually attractive coats trimmed
with fur, not only
was adopted and Howard R. Merrill of Lawrence & Co. was of your materials but of silk, and created the vogue of wearing furs in the
most
women
are
hottest
summer,
until
days
in
definitely
convinced that
appointed Chairman of the Distribution Committee, and
they could not appear at their best without wearing furs in one shape or
R. S. Bartlett of the American Woolen Co. and F. R. Tipper another on every occasion.
We have already shown, in the early part of this discussion, that the
of Deering, Milliken & Co., Vice-Chairman. Franklin W.
Hobbs of the Arlington Mills, Inc., was chosen Chairman of total amount indirectly spent for furs by women in buying cloaks and suits
is 33%% more than the entire cloak and suit industry spent for Woolens
the Production Committee, of which R. Leland Keeney of the and worsteds last year. But the real rival for the favor of women in
Somersville Manufacturing Co. and Nathaniel Stevens of apparel is silks.
Of the fabrics purchased by the Dress and Costume Trade amounting to
the M. T. Stevens & Sons Co. will serve as Vice-Chairman. $386,000.000
only $41,000.000 represented woolens and worsteds, so it is
Mr. Whiteside in addressing the gathering stated that "the evident that in this division of industry there is undoubtedly a serious enunderlying purpose of this meeting is to endeavor to change croachment by other fabrics in a field to which you should reasonably look
to expand your sales.
your attitude toward the po,000,000 net loss in working
We see on every side the luxurious effect of silk in womert's apparel.
capital incurred during the year ending Dec. 31 1926 to an It is attractive and it is entitled to a very important place in women's
to such unusual extremes where fashion
outlook that will yield you a profit of, at the least, a like costumes, but, as everything goes
is concerned, the vogue for silk has far outrun its natural utility. . .
amount for the year ending June 30 1928." Mr. Whiteside
far more to the lack of profits of the
contributes
another
factor
But
industry in general than the limitations of its market, which reduces volume
also said in part:
Ar$30,000,000 net profit in the woolen and worsted industry for the
coming year would be a very small return—not5% on the invested capital—
but even that amount would be extremely significant as it would be tangible
proof that this industry, which for the past century has been one of the
soundest industrial activities of this country. had turned in the right
direction. . . .
Current consumption . . . Is about $656,000,000 annually, which
figures out exactly 77.3% of the single shift producing capacity of this
country at present prices. . . .
On the total investment of $660,000,000 the mills lost $30,000.000 last
year. A few mills made money, but the great majority operated at a
loss. . . . If the mills are to earn 5% on their invested capital during
the next twelve months, prices must be raised. . . .
If the majority of the mills are figuring selling prices on the expectancy
of operating their mills full time, they are starting from a point from which
it will be extremely difficult to earn a profit. . . .
There are several other important points which should be considered by
the production controllers of the industry,such as carrying minimum stocks,
a closer co-ordination with distribution, and a reduction in the number
of styles and fabrics—but these are points that require very careful deliberation over a period of time and hardly rank in immediate importance with
these two vital points which I am endeavoring to emphasize.
First, a uniform method of figuring cost, and second, a general mark-up
In the scale of selling prices. These are phases of the situation that are
definitely the functions of Production and must be solved before this
Industry can become prosperous.
Distribution.
If we are to discuss the question of distribution intelligently, it will first
be necessary to determine the underlying cause for the present sales resistance of your market.
To put the whole subject in a nutshell, which of course means nothing,
distributing troubles arise from one dtuadamental condition—it is and has
been for a period of years, as a rule, a buyers market. It is a buyers market
because more merchandise is offered for sale than the customers require.
This is due, as you all know, to economic conditions which are affecting
pisttibution in every branch of industry.
Distribution to-day is the outstanding problem in business, and it is up
to you to solve that question satisfactorily before the mills that you represent, either in direct employment or on a commission basis, can prosper.
Isn't this the situation? Your mens wear sales have not increased as they
should have because men are not spending as much of their income as might
be reasonably expected for wearing apparel. Sales in womens wear are
difficult because, broadly speaking, women are not as favorably disposed,
for one reason or another, toward the use of your fabrics in their apparel as
they are toward others. Then, of course, you are affected by the evident
fact—the very short skirts. But these statements are really a recital of
what we all know and our only interest here is to find out what to do about
distribution, which will enable the woolen and worsted mills to make money.
Before considering what to do, we must find the fundamental causes for the
condition just stated.
Men.
A confirmation of the fact that the mans wear has not increased during the
past few years as it should have is shown in the Census report on the per
capita expenditures in this country for 1918 and 1923. In 1918 the average
per capita expenditure for clothing was $48.50, or 16.6% of the income.
In 1923 it was only 14.7% of the income, or still only $48. But the contrast for the same two years in the rent item shows that in 1918 rent was
$39 and in 1923 $61, an increase of 56.4%. Miscellaneous items and services increased from $62 to $81. an increase of 30%. These figures show
conclusively that the expenditure for clothing in 1923 was exactly the same
In dollars as in 1918. And every other item in the budget went up from
10% to 60%. These figures merely confirm what we have all surmised,
that as men are not spending more for clothing than they did in 1918.
they are each buying considerably fewer garments made of woolens or
worsteds. We know the reason for this.
During the last few years, it has been made easier than before, through
deferred payments, for men to buy automobiles, radios and other articles
which were considered luxuries until recently. At the same time, more
homes are being bought and more money is being spent on recreation of
every nature than ever before.
This subject may rest with this comment—whatever influenced these men
to change their attitude toward buying clothes was not intentionally directed
against the clothier, and even less against the woolen and worsted mills.
Men are spending more money for other things.
Now we know exactly what we knew when we started but,as we have said
it, we must find the means of improving this condition.
Women's Wear.
Women' wear styles have changed and (a) Less cloth is used in each
garment sold (b) Proportionately less apparel is made of woolen and
worsted cloth
but could not eliminate profits. The greatest weakness in all marketing
is an outstanding characteristic in this industry. And in spite of this
weakness. I fully recognize a few unuxual exceptions showing remarkable
ability as mill executives and distributors in contending against this almost
insurmountable menace to profits. That menace which is a fatal weakness in this line is not sticking to a price. Not sticking to a price in selling
markets that are made up of born traders with speculative instincts is
the most suicidal weakness that can possibly be shown. . . .
I do not speak of lowering prices when earning liberal profits and whect
there is justifiction through a lowering of the cost of raw material, labor,
or any other natural cause. I speak of the price that is broken to obtain
business, but more often to lose it. . . .
It is apparent to outside observers that nothing can be done in this
Industry while the present disorganized state of affairs continues to exist..
So I again repeat—the reason for this meeting is to endeavor in every
way possible to assist this industry to get on a profitable basis, but with
that thought in mind I knew that it could not be done until this industry
organized. So the actual fundamental purpose back of all others in asking
you here to-day was to ask you, as an industry, to organize here to-day
before you leave this room. And you will again say—how shall we go about
it? And the answer is—if a temporary co-ordinating board is formed by
the free choice of those present, the woolen and worsted industry is organized. One division of the board would concern itself directly with the
affairs of the industry which pertain to production, and one to those of
distribution.
In .his concluding remarks Mr. Whiteside said:
I have very carefully thought over the initial steps that might be taken
leading toward the co-ordination of this industry. That is, whether it
should be a temporary or a permanent organization, and I have come to
the conclusion that that is for you, and no one else, to decide for yourselves.
It does seem feasible, however,that this meeting should appoint a nominating committee to suggest a board of overseers consisting of 36 men-18 to
act as a committee on production and 18 as a committee on distribution.
This board would, of course, be truly representative in every sense of
the word and consist of representatives of large mills and small mills, of
manufacturers of men's wear and women's wear from every district an
from mills making every type of woven cloth for every conceivable purpose.
And if this board were formed, as merely a starting point—(a) The committee on production might consider these two suggestions—that of
1. Initiating a uniform method of figuring costs on key fabrics from the
loom to the selling price.
2. Recommending to the mills that they open the spring season on a
price scale which would yield a reasonable profit.
(b) The committee on distribution might consider these two ideas:
1. The maintenance by selling agents of the opening prices determined
by each mill represented.
2. The advisability of utilizing publicity as a means of broadening and
maintaining your markets.
But may I again reiterate that these suggestions are, in every sense of
the word,only suggestions. And I know that these suggestions can be done
because of the experience which we, in credit work, have been through
In co-ordinating the credit field. And may I point out forcefully to you
that no suggestion that has been made would limit in any way the initiative,
the operating activity or the relative earning power of any mill In this
country, for, on an increased cost scale, those mills that are making profits
would earn as much in proportion to the earnings of others as they do now.
And, in final closing, may I make these comments.
The century-old law of unrestricted supply and spasmodic demand has
been superseded by controlled production and regulated distribution. I
believe that you are the first industry to be seriously affected by this new
economic order and that you will be the first to solve it. And in doing
that you will make this industry the outstanding example of industrial
efficiency in America. not a follower of others but a leader. One that will
show the way to all other industries in the new order of co-ordination.
According to the New York "Journal of Commerce," the
two committees elected to represent the industry are:
Committee on Production.
Franklin W. Hobbs, Arlington Mills Co.. Lawrence-Lowell district;
R. Leland Keeney, Somersville Mfg. Co., Connecticut district; Edwin
Farnham Greene, Pacific Mills Co., Lawrence-Lowell district; Andrew G.
Pierce, American Woolen Co., New England district; Nathaniel Stevens.
M. T. Stevens & Sons Co., Lawrence-Lowell district; F. C. Dumaine,
Amoskeag Mfg. Co., New Hampshire district; F. A. Carter, American Textile Woolen Co., Southern district; Frederic S. Clark. Talbot Mills Co..
Lawrence-Lowell district; A. C. Combs, Combs & Co., Inc., Worcester
district; William Folwell, Folwell Bro. & Co., Philadelphia district; Henry
A. Francis, Pontoosuc Woolen Mfg. Co., Pittsfield district; F. J. Harwood,
Appleton Woolen Mills Co., Mid-West district; George H. Hodgson, Cleveland Worsted Mills Co., Ohio district; George E. Kunhardt, Geo. E. Hun-
•
THE CHRONICLE
160
[VOL. 125.
FUTURES ON THE CHICAGO BOARD OF TRADE
hardt Corp., Lawrence-Lowell district; J. Francis Legg, Worcester Woolen "OPEN CONTRACTS"IN
-.1
FOR JUNE 1927 (BUSHELS).
Co.. Worcester district; J. R. MacColl, Lorraine Mfg. Co., Rhode Island ("Short" side of contracts only, there being an equal volume open on the "long"side.)
district; Edward Moir, Crown Mills Co., New York district; William J.
Total.
Rye.
Oats.
Corn.
June 1927Wheat.
1
z69.907,000 73,123,000 35,431,000 z9,037,000 187,498.000
Park,Angus Park Group,Connecticut district; Max Stoehr,Botany Worsted
72,363,000 75,954,000 z36,293,000 9,442.000 194,052,000
2
Mills Co., Passaic district; George C. Hetzel, Geo. C. Hetzel Co., Chester,
3
73,264,000 76,030,000 35.887,000 9,613,000 194,794,000
Pa., district: H. T. Hayward, Schuster Woolen Co., East Douglas, Mass., 4
72,195,000 77,117,000 34,952,000 9,561,000 193,825,000
district; Percy Ainsworth, Hockanum Co., Rockville, Conn., district:
5 Sunday
73,163,000 78,095,000 34,800,000 9,750,000 195,808,000
6
A.I. Mitchell, Cyril Johnson Woolen Co., Stafford Springs, Conn., district.
73,440,000 78.151,000 34,407,000 9,892,000 195,890,000
7
71,870,000 78,065,000 34,021,000 9,958,000 193,914.000
8
Committee on Distribution.
9
77,502,000 33,507,000 9.959,000 193,605,000
72,637,000
Howard R. Merrill, Lawrence & Co.; Raymond S. Bartlett, American 10
73,748,000 77,332,000 33,067,000 10,063,000 194,210,000
73,268,000 z71,846.000 32,083,000 9,995,000 187,192,000
Woolen Co.; Frank Leaycraft, William Whitman Co.; J. P. Stevens, J. P. Ii
Stevens & Co.; George B. Sanford, Sanford & Russell; Allen R. Mitchell Jr., 12 Sunday
13
73,717.000 76,043,000 32,814,000 10,109,000 192,683,000
A. R. Mitchell & Son; Fred W. Tipper, Deering, Milliken & Co.; W. V. E. 14
74,475,000 75,729,000 33,039,000 10,216,000 193,459,000
Terhune, Terhune, Yereance & Wolff; Robert J. Leonard, Holden-Leon- 15
74,842,000 77,858,000 32,978,000 10,295,000 195,973,000
73,068,000 78.108.000 32,429,000 10,355,000 193,960,000
ard Co.; G. A. Adams, Parker, Wilder & Co.: Louis Hird, Samuel Bird & 16
17
75,129,000 78,605,000 32,372,000 10,483,000 196,589,000
Kunhardt
E.
Geo.
Sons; Fred K. Nixon, Worumbo Co.; James H. Knapp,
18
75,711,000 78,340,000 32,398,000 10,478,000 196,927,000
Lawrence
T.
F.
Lawrence,
T.
Fred
Corp.; A.C. Buckley, Buckley & Cohen:
19 Sunday
& Co.; C. E. Sigler, D. S. Mackay & Co.; Donald D. Mitchell, Faulkner & 20
76,987,000 z78,673.000 32,368,000 10,605,000 x198,633,000
76,347,000 78,221.000 32.381,000 10.640,000 197,589,000
Colony Co.; A. Stursberg, W.Stursberg, Schell & Co.; William B. MacColl, 21
22
76,226.000 77,227,000 32,090,000 10,592,000 196,135,000
Webb,
Lorraine Mfg. Co.; A. Deliagre, Botany Worsted Mills; Chas, J.
23
x77.008,000 76,817,000 32,155,000 110,716,000 196,696,000
24
Woolen Corporation of America.
75,784,000 76,801,000 31,032,000 10,420,000 194,037,000
25
75,591,000 77,120,000 30,666,000 10,341,000 193,718,000
Select Liaison Bodies.
26 Sunday
75,487,000 77,738,000 29,409,000 10,346,000 192.980,000
The committee on production elected Mr. Hobbs Chairman; Messrs. 27
28
74,719,000 76,217,000 28,879,000 10,048,000 189,861,000
Keeney and Nathaniel Stevens, Vice-Chairmen, and Walter Humphries, 29
73,248,000 75,837,000 z28,286,000 10,315,000 187,686,000
Secretary of the National Association of Wool Manufacturers, Secretary, 30
71,756,000 74,661,000 28,539,000 10.558,000 z185,514,000
and these Officers will act as a liaison body to tie up its activities with the
Averagecommittee on distribution, which elected the following officers: Mr. Merrill,
June 1927
74,075,000 76,816,000 32,549,000 10,145,000 193,585,000
Chairman: Messrs. Bartlett and Tipper. Vice-Chairmen, and J. J. Nevins, June 1926
84,845.000 60,624,000 36,631,000 9,751,000 191,851,000
Secretary of the American Association of Woolen and Worsted Manufac- May 1927
z68,957,000 69,326,000 32,798,000 z8,507,000 z179,588,000
80,193,000 80,416,000 43,551,000 13,585,000 217,745,000
facturers, Secretary. The liaison body of this group comprises Messrs. April 1927
Mar. 1927
86,396,000 x84,959,000 48,396,000 15,099.000 235,350,000
Merrill, Bartlett, Leaycraft and Tipper.
Feb. 1927
87,976,000 77,933.000 49,714,000 z15,683,000 231,306,000
Jan. 1927
90,024,000 68,526,000 48,960,000 13,468,000 220,978,000
94,547,000 60,192,000 46,278,000 13,099,000 214,116,000
Dec. 1926
Nov. 1926
:108,933,000 63,758,000 x50,015,000 15,144,000 :237.850,000
Pit Trading in Eggs Tried Out in Chicago.
100,156,000 54,427,000 49,162,000 13,823,000 217,568,000
Oct. 1926
102,235,000 z46,780,000 46,899,000 12,814,000 208,728,000
Sept. 1926
Associated Press advices from Chicago June 7, published Aug.
1926
99,118,000 53.654,000 42,730,000 13,014,000 208,516,000
July 1926
37,023,000 52,196,000 z31,397.000 12.393.000 183,009.000
York "Evening Post" said:
in the New
Pit trading in egg futures is being tried by the Chicago Mercantile Exchange and if members approve it will become permanent.
Because of the increased volume of trading the more cumbersome and
slower method of blackboard dealing Is being replaced, Charles J. Eldredge,
president of the exchange, said.
The egg and butter traders will move into a new exchange this summer.
The Chicago Exchange,the largest in the world, had been established seven
years. Transactions last year in butter and eggs at the exchange totaled
more than $350,000,000 Mr. Eldredge said.
x High. z Low.
Adjournment of Illinois Legislature-Failure to Pass
Kessinger Grain Regulation Bill, Grain
Warehouse Bill and Income
Tax Measure.
Referring to the fact that two measures against which
Chicago members have fought since their introduction were
killed in the closing hours of the Illinois Legislature on June
Transactions in Grain Futures During June on Chicago
30,the Chicago:"Journal of Commerce"in Springfield advices
Board of Trade and Other Markets.
that date said:
Revised figures showing the volume of trading in grain
One was the Kessinger bill, which would have put the Chicago Board of
and the other one was the
futures on the Board of Trade of the city of Chicago, by Trade under a state regulatory commission,
-Deck-Sneed measure which sought to levy a state tax upon incomes.
days, during • the month of June, together with monthly Lantz
Both were well down upon the calendar, and with the time before adtotals for all "contract markets," as reported by the Grain Journment growing short, the members who were handling these bills in
saw that their measures would not get a roll call unless they could
Futures Administration of the United States Department of the house,up
and acted upon out of their regular order. To do this requires
be called
Agriculture, were made publi: July 7 by L. A. Fitz, Grain seventy-seven supporting votes.
at
The
Supervisor,
Chicago.
statement shows
Exchange
Gets Sixty-Four Votes.
total transactions at all markets during June of 2,298,074,000
Representative G. J. Johnson of Paxton made the motion to take up
out of its regular order, and secured the support
bushels, compared with 1,762,775,000.bushels a year ago. the Kessinger measure
of sixty-three of his colleagues, chiefly downstater!. Fifty-seven members,
On the Chicago Board of Trade the transactions during June Chicagoans in the main, voted against the calling up of the bill, and as it had
this year totaled 2,045,634,000 bushels, against1,520,137,000 failed to receive the required constitutional majority it was returned to its
place on the calendar, with no prospect that there will be another
bushels in the same month last year. We give below the correct
attempt to call it up. The fact that it received only sixty-four votes on a
details-the figures listed representing sales only, there motion to consider it indicates that it would not be able to receive this many
on the question of passage.
being an equal volume of purchases.
VOLUME OF TRADING.
According to Washington advices to the "Wall Street
Expressed in Thousands of Bushels, i.e.. 000 Omitted.
Journal" July 5 the failure of the Kessinger bill and its
Corn.
Date-June 1927.
Rye. Barley, Flax. Total.
Wheat.
Oats.
51,880 41,476 9,054 1,971 --------104,381 companion measure, the grain warehouse bill, in the Illinois
1
2
56,450 45,320 13,092 2,473 --------117,835
52,651 14,817
57,627
127,710 Legislature, to become a law, will be followed by a drive
3
32,781 30.789 7,495 1,877 --------72,742 for the eneactment of Federal legislation along the same lines
4
5 Sunday
25,822 27,813 5,927 1,488
61,048 at the next session of Congress. The paper quoted adds:
8
9,727 3,203
95,171
7
47,400 34,841
High officials of the Department of Agriculture have been advised that
49,841 21,312 3,880 2,022
77,055
s
grain producers and farmers' grain marketing organizations are determined
9
10
11
12 Sunday
13
14
15
16
17
18
19 Sunday
20
SI
aa
23
24
aa
26 Sunday
27
28
29
ao
42,048 25,906
57.368 72.128
40,577 31.347
5,748
5,496
7,044
1,506
2,172
986
75,206
137,164
79,954
35,447
38,788
33,285
35,203
43,347
18,294
47,205
35,628
27,039
35,884
37,260
21,381
4,551
4,394
3,234
3,824
3,779
1,284
1,028
1,213
1,154
1,362
851
643
88.231
80,023
64,712
76,253
85,237
39,802
32,842
10.788
13,483
45,082
34,276
21,478
25,992
21,065
14,290
25,876
26,036
22,406
1,227
1,171
1,525
3,258
5,001
2.636
983
1,417
593
1,591
1,485
718
....
____
____
---__
____
61,044
40,421
29,891
75,807
67,378
47,238
36,351
32,748
36,629
67,309
48,086
85,405
25.228
30,936
4,688
4,108
5,983
6,875
1,320
2,085
2,283
2.019
....
____
.....
......
90,425
74,344
70,123
107,139
___ 2,045,634
Total Chicago Bd.of Tr_ 1,001.122 863,280 140,396 40,838
60
56,683
Chicago Open Board
37,559 16.891
2.173
Minneapolis C. of C.-- 51,737
71,713
13,373 3,175 1,715 1,713
77,915
Kansas City Bd. of Tr... 45,240 32,675
4 2,519
15,274
Duluth Board of Trade_ *8.356
4,395
St. Louis Merch. Exch..- 0,648 3,033
6,681
Milwaukee C. of C
305
10,083
2,632 5,417 1,729
New York Produce Each 12,845
12,845
Seattle Merch.Exch....
1,246
1,246
Los Angeles Grain Exch.
San Francisco C.of C_
Baltimore C. of C
Total all markets-1,164,385 921,296 157,671 48,771 1,719 4,232 2,298,074
Total all m,ts. year ago..1,203,140 342.277 139,860 68.898 4,542 4,060 1,762,775
Chicago B.of T.year ago.1,050,089 320,783 99,411 49,854
- 1,520,137
•Durum wheat with exception of 510 wheat.
65 red wheat.
a Hard wheat with exception of
to carry their fight to the national capital next winter. Officials expressed
no opinions on the reported determination of the grain producers, nor have
they given the matter any consideration. Contrasting the Kessinger bill
proposing to regulate grain exchanges with the Grain Futures Act,however,
it was pointed out that the former has more "teeth" than the latter.
Grain farmers and producers marketing organizations in the Middle West,
officials understand, are advocating Federal intervention.
Kessinger bill provided for the regulation of grain exchanges in that state
and the licensing of brokers or members of the exchanges trading for others.
Measure also called for certain reports, provides for the examination of
records, etc., at the discretion of a commission created under the bill.
Warehouse bill introduced at the behest of a special legislative committee
which made a survey of the Chicago grain warehousing and elevator situation following the Armour Grain Co. incident would set up a corporation
to handle grain in public elevators. Plan is to avoid situation where elevator operators have a direct interest in the grain stored in elevators.
Proposed corporation would be in the nature of a holding company which
would operate the warehouses. No such legislation is on the Federal
statute books at the present time, according to Department of Agriculture
officials.
John A. Bunnell, President of the Chicago Board of
Trade, commenting on July 1 on the failure of legislative
action on the Kessinger bill, stated:
The action of the Illinois Legislature in refusing to pass the Kessinger bill
has dispelled a feeling of apprehension over the future of the grain market,
felt not only by the members of the board of trade, but also by agricultural,
financial and grain interests of the State of Illinois.
Our exchange members are the agents of the growers of the products of
the soil and of the consumers of those products. Both are entitled to the
most efficient service of which we are capable and both are receiving that
service.
THE CHRONICLE
Constructive criticism or suggestion to improve the service of the grain
exchange is welcomed by the officers of the exchange from organized
agriculture or any other source and will meet hearty co-operation. The
Chicago Board of Trade has a distinct place as an economic necessity and
will let nothing interfere with the performance of its duty to both producer
and consumer.
Associated Press advices, as follows, were reported from
Chicago, July 1:
Following the shelving of the Kessinger grain futures supervision bill
by the Illinois Legislature the directors of the Chicago Board of Trade
to-day rescinded their resolution of May 7 and resumed trading in future
contracts for delivery after September. Notice of trading In December
contracts was posted and wheat on this contract opened at 1473t•
On May 7 the board of directors, fearing the effect of compulsory reporting of futures trading as threatened by the Kessinger bill instructed the
market report committee not to provide for future contracts in grain after
September.
The adjournment of the Illinois House without taking
action on the Kessinger bill was noted in these columns last
week, page 28.
Crude Oil and Gasoline Prices Show Few Changes.
Few price changes were recorded in the markets for crude
oil and gasoline during the week just passed. But one change
in crude oil price was noted,-that made July 6 by the
Louisiana Oil Refining Corp. when it revised the price
schedule on Smackover Light Crude, posting $1.25 for all
oils of 24 gravity and above, which conforms to the schedule
Standard Oil of Louisiana established March 14. Oil below
24 gravity is unchanged at $1. This revision, effective
July 7, is an advance of 4 to 100. and was immediately met
by Shreveport El Dorado Pipe Line Co. and Atlantic Oil
Producing Co.
The Standard Oil Co. of Kentucky on July 5 advanced
gasoline in Florida 1 cent a gallon, to include increase in
state gasoline tax to 5 cents, from 4 cents a gallon, effective
July 1.
In the wholesale market in Chicago on July 8 the following
prices prevailed: United States motor grade gasoline,63
%©7c;
kerosene, 41-43 water white, 4e; fuel oil, 24-26 gravity
92%©9734c.
Late on Friday it was reported that all gasoline filling
stations in Chicago were ordered closed by gasoline companies following a strike called by employes of gasoline
stations operated by Sinclair Oil Co. This means gasoline
may be purchased only from refineries and outlying stations
with non-union employes, the dispatch said. General closing
order followed weeks of negotiations between oil companies
and members of the union over new wage agreements.
Another New High Record Reached in Crude Oil
Production.
An increase in production of crude oil during the week
ended July 2 amounted to 24,800 barrels per day and brought
the total daily average gross production up to 2,535,550 barrels, as compared wtih 2,510,750 barrels for the preceding
week, according to the weekly summary issued by the American Petroleum Institute. This is the highest figure on record. The daily average production east of California was
1,908,150 barrels, as compared with 1,875,650 barrels, an
increase of 32,500 barrels. The following are estimates of
daily average gross production by districts for the weeks
noted:
DAILY AVERAGE PRODUCTION.
July 2 '27. June 25'27. June 18'27. July 3'26.
802,600
774.500
786.750
458,450
110,550
111,900
112,250
109,350
121,050
125.500
125,450
52.500
87,200
88,300
87,150
84,500
73,150
73,800
75,450
53.750
134,600
118,250
117,250
33,900
34,800
35,650
36.650
52,050
31.750
32,600
32,850
38,750
50,200
49,900
49,300
60,300
111,950
113.100
112,600
163,650
135,050
138,600
137,350
86,150
15,850
15,800
14,550
14,900
111,500
111,000
111,000
105.000
62,300
80,650
59,650
72.800
15,400
15,400
15,450
28.050
7,200
7,250
7,350
9,300
3,000
3,050
3,200
4,850
627,400
635,100
646,000
610,400
Total
2.535,550 2,510,750 2,509,650 2,038,450
The estimated daily average gross production of the Mid-Continent
field,
including Oklahoma, Kansas, Panhandle, north, west central, west Texas,
east central and southwest Texas, north Louisiana and Arkansas, for the
week ended July 2 was 1,557,850 barrels, as compared with 1,628,900
barrels for the preceding week, an increase of 33,950 barrels. The Mid.
Continent prodaction, excluding Smackover, Ark., heavy oil, was 1,469,850
barrels, as compared with 1,434,950 barrels, an increase of 84,900 barrels.
In Oklahoma, production of North Braman is reported at 8,950 barrels,
against 4,250 barrels; South Braman, 3,300 barrels, against 8,050 barrels;
Tonkawa, 21,850 barrels, against 21,700 barrels; Garber, 13,500 barrels,
against 13,600 barrels; Burbank, 42,100 barrels, against 43,200 barrels;
Bristow-Slick, 26,300 barrels, against 26,350 barrels; Cromwell, 13,350
barrels, against 13.300 barrels; Wewoka, 18,800 barrels, against 19,000
barrels; Seminole, 323,950 barrels, against 307,000 barrels, and Earlsboro,
98,900 barrels, against 86,850 barrels.
In Panhandle Texas, Hutchinson County is reported at 97,500 barrels,
against 100,300 barrels, and balance Panhandle, 23,550 barrels, against
25,200 barrels. In east central Texas, Corsicana-Powell, 10,500 barrels,
(In Barrels)Oklahoma
Kansas
Panhandle Texas
North Tau
West central Texas
West Texas
East central Texas
Southwest Texas
North Loulidana
Arkansas
Coastal Texas
Coastal LOUISlaIIII
Eastern
Wyoming
Montana
Colorado
New Mexico
California
161
against 16,850 barrels; Nigger Creek, 3,550 barrels, against 3,700 barrels ; Reagan County, west Texas, 26,000 barrels, against 25,350 barrels;
Crane and Upton counties, 82,350 barrels, against 75,150 barrels; Pecos
County, 13,850 barrels, against 5,000 barrels; Brown County, west central
Texas, 27,950 barrels, against 28,250 barrels, and in the southwest Texas
field, Luling, 15,600 barrels, against 15,950 barrels; Laredo District,
12,400 barrels, against 12,750 barrels; in north Louisiana, Haynesville ls
reported at 7,750 barrels, against 7,850 barrels; Urania, 8,850 barrels, no
change, and in Arkansas, Smackover light, 11,050 barrels, against 11,150
barrels; heavy, 88,000 barrels, against 88,950 barrels, and in the Gulf
Coast field, Hull is reported at 16,950 barrels, against 17,550 barrels; West
Columbia 9,000 barrels, against 9,800 barrels; Spindletop 61,250 barrels,
against 61,500 barrels; Orange County, 4,900 barrels, against 5,400 barrels, and Pierce Junction, 7,000 barrels, against 7,500 barrels.
In Wyoming, Salt Creek is reported at 43,800 barrels, against 42,800
barrels, and Sunburst, Mont., 13,000 barrels, no change.
In California, Santa Fe Springs is reported at 41,000 barrels, no change;
Long Beach, 92,000 barrels, against 93,500 barrels; Huntington Beach,
73,600 barrels, against 74,000 barrels; Torrance, 23,500 barrels, no change;
Dominguez, 15,500 barrels, against 16,000 barrels; Rosecrans, 9,000 barrels, against 9,500 barrels; Inglewood, 34,000 barrels, against 35,500 barrels; Midway Sunset, 89,500 barrels, no change; Ventura Avenue, 87,400
barrels, against 37,600 barrels, and Seal Beach, 61,000 barrels, against
64,000 barrels.
June Steel Ingot Production Shows Decrease.
Production of steel for the month of June shows a decrease
as compared with last month and also as compared with the
corresponding month last year. Steel ingots produced in
June aggregated 3,306,724 tons, according to the American
Iron & Steel Institute's usual monthly tabulations, compiled
from companies which produced 95.01% of the total output
in 1926. Of the amount mentioned above, 2,820,677 tons
were open-hearth and the balance Bessemer. The calculated
monthly production of all companies on this basis was
3,166,168 tons in June as against 4,015,192 tons in May and
4,094,849 tons in April. The average daily production of all
companies in June with 26 working days, was 133,314 tons.
In May the daily output was 154,430 tons, and in April
157,494 tons, both having 26 working days. In the following
we show the details of production back to January 1926:
MONTHLY PRODUCTION OF STEEL INGOTS, JAN. 1926 TO
JUNE 1927.
Reported for 1926 by companies which made 95.01% of the steel ingot
production in that year.
Months.
1926,
Calculated
Approx. Per
Monthly Monthly No.of DailyPro- Cent
Producdion Production Work- duction
of
AU
OpalCompanies
AU
in
an Cos., OperaHearth. Bessemer. Other. Reporting. Companies. Days.OrossTont Hon.
January.... 3.326,8461
February. 3.023,829j
March_ _. 3,590,791
April ____ 3,282,4
May
3,201,2301
June
3,036,1621
581,683
556,031
635,680
601,037
516,676
498,764
13,664
12,818
15,031
13,652
10,437
9.441
3,922,193
3,592.678
4,241,502
3,897,124
3,728,343
3,544,367
4,132,210
3,785,051
4.468,617
4,105,799
3.927,979
3,734.153
26
24
27
26
26
26
158,931 *98.86
157,710.98.10
165.504'102.94
157,9151.98.22
151.076'93.97
143,621 *89.33
6 mos.._ 19,461,2933,389,871 75,04322,926,20724,153,809 155
2,911,37 526,511 12,372 3,450,247 3.634,993
3,145.05 627,273 12,003 3,784,331 3,986,966
3,089.241 612.588 12,660 3,714,488 3,913,383
3,224,584 630,526 12,348 3.867,458 4.074.544
2,915.• : 592,239 9,605 3,517,402 3,705,744
2,788.47 493,172 8,919 3,290,570 3,466,766
Total_ _37,535,.6,872,169142,95044,550,70346,938,205 311
155,831 96.93
t4 t4 b2 I•3 I.J to 1
COOCl/COCOCO
JULY 9 1927.]
July
August_._
September
October
Novembe
Decemb
1927.
January
February..
March...._
April ____
May
June
R nnna
3,041,233
3,042,232
3,701,418
3,340,85
3,272,810
2,820,6
545.690
565,201
590,716
565,
557,683
486,047
10 210 9991 110 071
*3,586,92341,759,877
*3,607,433*3.781,376
*4,292,134'4,499,092
'3,906.486'4,094,849
*3,S30.493'4,015,192
3,306,724 3,468,168
139,807986.96
153,345'95.38
150,515 1'93.62
l56,713'97.48
142,529'88.65
133,337'82.94
150,920*93.87
26
24
27
26
26
26
*144,611 "89.06
'157,557 97.03
'l08.63310262
'l67.49'98.99
*154,43 .95.10
133,3141 82.10
99 A10 10R9RRIA AA4 IAA
152585! OR A1
•Revised. Excludes crucible and electric ingots as it has not been found feasible
to secure. onthly figures from a sufficient proportion of producers to fairly
represent
the production of steel ingots by these processes.
The figures of "per cent of operation" are based on the "praclicaly capacity" as of
Dec. 31 1926, of 50,500,000 gross tons of open-hearth and Bessemer steel ingots.
Revival of Buying Interest in Copper-Good Tonnage
Sold to Consumers at 12% Cents a
Pound, Delivered.
A good tonnage of copper has been•sold on the basis of
12.50 cents a pound, delivered in the Connecticut valley,
which brought out a better tone in the market. Though the
leading brass company did most of the buying other fabricators participated to some extent. Most of the orders have
been for August and September delivery, "Engineering and
Mining Journal" reports. Earlier in the week at least
one good-sized sale was made at 123
% cents for delivery in
the New York district. The contest that has been going
on for four weeks between buyers and sellers appears to have
ended with neither side the undisputed victor says this
publication.
Lead has been quiet and prices are lower than a week ago.
Five successive days of lower prices in London made it
necessary for prices on this side to be cut also if foreign
lead ore were to be kept out of the country. The improvement in London on July 6 was encouraging, but the market
here remained very quiet at 6.30 cents, New York basis.
Sales of zinc in the domestic market have been in less than
162
[VOL. 125.
THE CHRONICLE
normal volume and prices are easier than a week ago. The
premium on spot and prompt tin continues to decline. Buying has been stimulated somewhat by the lower prices.
Antimony and platinum have been stagnant, but prices are
practically unchanged. A reduction in the price of bismuth
by domestic producers has been put into effect.
United Mine Workers of Ohio Reject Proposal to
Return to Work at 1917 Wage Scale.
According to Associated Press dispatches from Columbus,
Ohio, the United Mine Workers of Ohio yesterday (July 8)
rejected the proposal of the Ohio Coal Operators' Association
to return to work at the 1917 wage scale of $5 a day. The
dispatches state:
Refusal of the proposal was made by the policy board of the State organization, comprised of the State officials and the six subdistrict presidents,
which began consideration of the operators' proposal here yesterday afternoon.
The proposal that the union miners accept the 1917 wage scale had been
made by the operators in the form of an ultimatum. If not accepted by
July 15 the operators warned they would open their mines on a non-union
basis.
June Pig Iron Output Declines Sharply.
Pig iron production in June fell sharply from that of
May, accentuating the decline which appeared in that
month. Complete returns from all furnaces as compiled
by the "Iron Age" on July 7, show a daily rate of 102,988
gross tons or a decline of 6,397 tons per day, from the
109,385 tons as the daily rate in May. This is a falling
off of 5.87% and compares with a decrease in May from
April of 4.1%. The June operations were the smallest
for the year except in January, when the rate was 100,123
tons per day. A year ago the daily rate was 107,844 tons,
making June this year 4,856 tons per day, or 4.5%, less.
Production of coke pig iron for the 30 days in June was
3,089,651 tons, or 102,988 tons per day, as against 3,390,940
tons, or 109,385 tons per day, for the 31 days in May,
continues the "Age," giving further details as follows:
Net Loss of Thirteen Furnaces in June.
In June 19 furnaces were shut down and six were blown in, the net
loss being 13. This compares with a net loss in May of nine furnaces and
with a net loss of three in April. In March there was a net gain of six
furnaces.
Of the 19 furnaces shit down in June, 11 were Steel Corporation stacks,
six belonged to independent steel companies and two were merchant
furnaces. The six furnaces blown in were divided as follows: Steel
Corporation, two; independent steel companies, three; merchant, one.
PRODUCTION OF STEEL COMPANIES
Total Iron,
Spiegel and Ferro.
1926.
1927.
January
2,599.876 2,343,881
February
2,272,150 2.256,651
March
2.661.092 2.675.417
Aprh
2,677,094 2.637,919
May
2.687,138 2.619.078
June
2,465,583 2.343,409
Half year
July
August
September
October
November
December
FOR OWN USE-GROSS TONS
Spiegeleiten and Ferromanganese.*
1926------ ------1927
Fe-Mn. Spiegel. Fe-Mn. Spiegel.
29.129
7.746 31,844
7%486
22,309
7,084 24.560
7,045
24.064
7,339 27.834
7.650
24.134
7.051 24.735 12,907
23.159
6,999 28.734
9,788
25,378
5,864 29,232 10,535
15,362,933 14,876,355 148,173
2,461,161
26.877
23.557
2,424,687
2,436,733
25,218
2.578.830
28.473
2,484,620
31.903
2,322,180
31,827
Year
30,071.144
•Includes output of merchant furnaces.
315,828
42,083 166.939
3,699
4,372
2.925
6,295
7.665
7,157
55.411
74,096
TOTAL PRODUCTION OF PIG IRON.
By Months, Beginning Jan. 1 1925-Gross Tone.
January
February
March
April
May
June
Half year
July
August
September
October
November
December
3,370,236
3.214,143
3,564,247
3,258,958
2,930.807
2,673,457
3,316,201
2,923,415
3,441,986
3,450,122
3,481,428
3,235,309
19,011,948
2,664,024
2,704,476
2,726,198
3,023,370
3,023,006
3.250,448
19,848,481
3,223,338
3,200,479
3,138,293
3,334.132
3,236,707
3,091,060
1927.
3,103.820
2,940,679
3.483,362
3,422,926
3,390,940
3,089,651
19,430,678
Year*
36,403,470
39,070.470
•These totals do not include charcoal pig iron. The 1926 production of this iron
was 163.880 tons.
Trend of Iron and Steel Operations Uncertain, Though
Steel Shows Signs of Improvement-Prices
Remain Stable.
Production of pig iron was sharply curtailed in June
and chiefly by steel compaines, reports the "Iron Age" of
July 7 in a statement given in detail in another column
in to-day's issue of the "Chronicle."
In reviewing the trend of condition in the steel trade
during the week which was the beginning of the second
half of the year's operations, the "Age" declares that there
are indications of some improvement in business and a
broader effort of producers to hold at least the present
margin between prices and costs.
Although the amount of buying repeats the fairly steady
rate of the past few weeks, Chicago reports that the railroads are actively seeking miscellaneous tonnages for maintaining rolling stock and unexpectedly two Western roads
bought a total of 1,500 cars. On eother outstanding item
of buying by the carriers is 42,000 tons of rails for the
Southern Ry. and subsidiaries. Continuing, this journa
says:
Capacity Active on July 1.
On July 1 there were 198 furnaces in balst as compared with 211 on
June 1. The estimated operating rate of the 198 furnaces on July 1 was
100,240 tons per day, as against 107,445 tons per day for the 211 furnaces
on June 1.
Shipments still exceed orders, but heat and the holiday have cut heavily
Large Ferromanganese Output.
into operations. As a measure of these adjusting influences is the state
ferromanganese
production
for
the
year
was
recorded
largest
The second
of the Steel Corporation's production, which will probably show ten points
in June-29,232 tons, the largest having been 31,844 tons in January. loss for the week, or 55% of capacity for the time being. A balancing
Spiegeleisen output was again high in June at 10,535 tons, also the second of operations and demand is looked for this month. Expansion seems
largest this year, the April production having been 12,907 tons.
to await alone on consumers getting a clearer idea than they now have
of what will be their needs for the coming months.
The number of possible active furnaces is unchanged at 362.
Pig iron sales at St. Louis, totaling 28,000 tons, were the largest for
First Half Output Less than Last Year.
several months, but there is generally little buying interest as the third
For the six months of 1927 the total pig iron output was 19,430,678 quarter opens. A favorable feature in the Central West is the large flow
tons. This is 417,783 tons, or 2.1%, less than the production for the of specifications from the automobile industry. In many cases foundries
first half of last year, which was 9,848,461. It exceeds, however, the have not covered requirements beyond a carry-over from the last quarter.
first half production of 1925 at 19,011,948 tons.
Surplus pig iron of steel companies is becoming more of a market factor.
A radiator company has placed 5,000 tons of foundry iron with a western
Furnaces Blown In and Out.
Among the furnaces blown in during June were No. 2 Carrie furnace Pennsylvania steel works.
An Eastern steel company has bought a large tonnage of heavy melting
of the Carnegie Steel Co.; the Colonial furnace in western Pennsylvania;
No.2 Hubbard furnace of theYoungstown Sheet & Tube Co:in the Mahon- scrap at $14, delivered, a decline of 50c. as compared with its last sizable
purchase.
In other sections there are indications that old materall is
American
Co.
in
Rolling
Mill
the
ing Valley; one Columbus furnace of
central Ohio; one Madeline furnace of the Inland Steel Co. in the Chicago scraping bottom. At St. Louis various grades have advanced 25c. to
50c. a ton. Recent prices are holding at Cleveland and the market has
district and the Zenith furnace in Minnesota.
of Valley
Among the furnaces blown out or banked during June were the Keystone a stronger undertone at Pittsburgh, reflecting the inability
steel
companies to obtain usual supplies from Detroit, following Lake
the
Steelton
plant
of
the
furnace in the Schuylkill Valley; E furnace at
shipments from Detroit to Buffalo. In New England the low prices
Bethlehem Steel Corp. in the lower Susquehanna Valley; No. 5 Carrie
in the shipment of 11.000
furnace, H and K Edgar Thompson furnaces of the Carnegie Steel Co., offered by domestic consumers have resulted
steel to Italy.
•
one Aliquippa and one Eliza furnace of the Jones & Laughlin Steel Corp., tons of yard
There Is no evidence
prices.
makers
restoring
Wire
seem
in
successful
and No. 3 Monongahela furnace of the Pittsburgh Steel Co. in the Pittsfor nails, but current shipburgh district; G furnace at the Cambria plant of the Bethlehem Steel that less than $2.55 is accepted on new orders
Corp. in western Pennsylvania; A furnace at the Sparrows Point plant ments are at prices hitherto prevailing.
Contracting for bolts and nuts for the third quarter is in good volume
of the Bethlehem Steel Corp. in Maryland; No. 3 Mingo furnace of the
Carnegie Steel Co. in the Wheeling district; No. 2 Ohio furnace of the at the ruling prices, but specifications are not more than usual for the dull
Carnegie Steel Co. in the Mahoning Valley; the Ironton furnace of the summer period. Rivet makers are getting $3 a 100 pounds for the large
Marting Iron & Steel Co. in southern Ohio; No. 3 and No.9 South Chicago size on small lots to non-contracting consumers.
The week's railroad car orders, totaling 1,820 cars, included 1,000 for
furnaces of the Illinois Steel Co. and No. 1 and No. 7 Gary furnaces in
the North American Car Co. and
the Chicago district, and Nos. 3 and 4 Bessemer furnaces of the Tennessee the Chicago & North Western, 500 for
for the Great Northern. Two roads are inquiring for 30 locomotives
250
Coal, Iron & RR. Co. in Alabama.
and the Pennsylvania will build 25 in its own shops.
DAILY RATE OF PIG IRON PRODUCTION BY MONTHS-GROSS TONE
Structural steel contracts of 33,000 tons inculde the Hoppers Bldg. in
Merchant.'
Taal Pittsburgh, 8.000 tons; bridge over the Mississippi River at Cairo. Ill.,
Steel Works.
a
25.658
107,844 5,800 tons, and a power plant at Detroit, 5,250 tons. Fresh projects
82,186
1926 June
24,588
103,978
July
79.392
24,000
tons,
total
of
6,000 tons is for a savings bank in Brooklyn.
which
25,025
103,241
August
78,216
23,319
In the case of the heavy tonnage products, exceptional quotations were
104,543
September
81,224
24.365
107,653
October
83,188
few. Competition on a large project in the East brought out 1.65c. Pitts25,070
107.89C burgh basis, on shapes. In Chicago a concession of $2 a ton was offered,
November
82.820
24.803
99,712
December
74,909
24.514
100.123 without takers, on 2,000-ton lots of either structural steel or plates for
75,609
1927-January
24,429
105.024 immediate shipment.
February
80,595
28,062
112,388
March
86,304
Machinery exports in May totaled $35,969,289, a drop from the $39,28.144
114.074
April
87,930
highest figure in some years. Exports of
24,899
109,385 793.078 in April, which was the
May
84,486
industrial
machinery in April and May exceeded those of any two months
24,878
102,988
June
78.110
since 1921. For five months, the machinery exports, at $176,687.000,
•Includes pig Iron made for the market by steel companies.
JULY 91927.]
THE CHRONICLE
are behind last year's $188,899,000, and imports are above last year.
$9,799,000 to $8,551,000.
The European Rail Makers' Association has increased the price of
heavy section rails slightly, to about $31 a ton.
German exports of most rolled products have declined and export prices
have weakened. but German domestic business in steel is active.
Both the "Iron Age" composite prices remain unchanged from last
week, that for pig iron at $18.71 a ton and that for finished steel at 2.367c.
a pound, as shown in the following tables:
Finished Steel,
Pig Iron.
July 5 1927, 2.367 Cents Per Pound.
July 5 1927, $18.71 per Gross Ton.
One week ago
2.367c. One week ago
8.96
One month ago
2.374e. One month ago
18.96
One year ago
2 4310. One year ago
19.59
10-year pre-war average
1 6890. 10-year pre-war average
15.72
Based on steel bars, beams,tank plates,
Based on average of basic iron Valley
plain wire, open-hearth rails, black pipe furnace and foundry irons at at
Chicago,
and black sheets, constituting 87% of the Philadelphia, Buffalo, Valley and
BirUnited States output.
mingham.
High.
Low.
High.
Low.
1927-2.453o., Jan. 4 2.3390., Apr. 26 1927__$19.71, Jan. 4 $18.96.
June 28
1926_2.453e., Jan. 5 2.4030., May 18 1926._ 21.54. Jan. 5
19.46. July 13
1925_2.560c., Jan. 6 2.3960., Aug. 18 1925__ 22.50, Jan. 13 18.96,
7
1924_2.789e., Jan, 15 2.480c.. Oct. 14 1924-- 22.88, Feb. 26 19.21. July
Nov. 3
1923_2.824o., Apr. 24 2.446c., Jan. 2 1923__ 30.86. Mar.20 20.77. Nov.
20
163
by the increased demand for the fall trade, not now so far away; and buyers
should not forget that any present advantages gained in mining settlements
are more than offset by the fact that coal has been and is selling at cost and
below, and there are considerable losses to be made up.
It is a long jump through the present coal fog to Illinois with merely a
stop for fresh fuel in Ohio, which could be secured only out of shipments
from distant fields. The tonnage produced at local mines, mostly closed in
those States, would be of no consequence ordinarily. The operators and
miners have again held their periodical conference, have again shaken hands
and turned their backs on each other, with no progress in settlement made.
But how could they settle on the Jacksonville scale, which would mean
at best a rapid demise of the coal industry in those States. Nothing is
settled until it is settled right, and is it not true that an Illinois and Indiana
settlement, on the basis of signing the Jacksonville scale with the only
modifications those of the loading machine arrangement, would help but a
portion of the great coal fields of those States and leave the others high
and dry.
Production of bituminous coal in the first six months of
the current year was about 7,000,000 tons ahead of the output
for the corresponding period last year, declares the "Coal
Age News" on July 7. This lead, however, will soon be
wiped out unless there should be a resumption of large-scale
mining in some of the union fields. Industrial consumption
of coal, according to estimates of the National Association of
Manufacturers, is 4% less than it was a year ago. At this
rate of consumption the June output of bituminous coal was
large enough to take care of over 90% of the current demand.
With stockpiles still large the consumer's persistent indifference is readily understandable, continues the "News"
from which we add the following:
Production of pig iron in June fell 9% below May and
7% under last June, according to estimates made by the
"Iron Trade Review." The month's total is 3,088,996
gross tons, against 3,391,067 tons in May and 3,232,478
tons last June. The June daily rate was 102,966 tons,
against 113,781 tons in May and is the lowest average since
January.
For the first half of the year the pig iron total stands at
The Lake trade still holds first place in volume despite the disappearance
19,428,497 tons, ranking below 20,828,401 tons in the first of the rush spirit which characterized developments at the Head of the
half of 1923 and 19,850,913 tons of 1926. At the close of Lakes earlier in the season. The "Coal Age News"index ofspot bituminous
prices for the current week is 151 and the corresponding weighted average
June 198 stacks, or 13 fewer than at the close of May, price
is $1.83. These figures are the same as those for the week previous.
were in blast. One merchant stack was added during the Increase in prices on Pittsburgh district coals and slight gains in parts of
month, while 14 steel works stacks were dropped, indicating the central Pennsylvania field offset the declines registered on the highvolatile coals of southern West Virginia and eastern Kentucky and the
that most of the slack is resulting from a shrinking demand softening
tendency revealed in smokeless.
for finished steel being taken up. On the basis of the
The turn of the month brought no improvement to the market for
current operating rates, and the experience of the past three anthracite domestic sizes. On the whole, prices are being well maintained.
A steady tone prevailed in the steam-coal market.
years, the decline in pig iron production, which has characterized both May and June, may be expected to continue
through July but at a diminished pace. Regarding con- Bituminous Coal Output Rises as Anthracite and
Coke Output Falls Off.
ditions in the iron and steel markets during the past week,
Figures compiled by the United States Bureau of Mines
the "Review" had the following to say:
Due to the heat, which has worked the greatest hardship upon sheet covering the week ended June 25 show an increase amountmills, and the July 4 holiday, the real trend of the iron and steel markets
ing to 190,000 net tons in the production of bituminous coal,
has been obscured during the past week. Pig iron sales are expanding
but the order books of the furnaces are light for the season. Trendency whereas anthracite and coke outputs declined, the former
in pig iron prices have given no more ground, holding at 1.80 base Pitts- by 82,000 tons and the latter
by 6,000 net tons, in compariburgh for attractive business in heavy finished material, and at 1.85 for
son with the preceding week's figures. The Bureau of
small lots.
Competition of by-product ovens has forced some of the beehive pro- Mines reports further details as follows:
ducers to sell third quarter furnace coke below $3.25, although it is calimed
The average rate of production of bituminous coal has shown little
that less than $3.25 is not compatible with the $6 wage scale.
Paralleling heavy secondary rail inquiry at Chicago, the Eastern carriers
are now in the market for 110,000 tons of rails. Southern
has placed
42,000 tons. Track fastening orders at Chicago, including some by
the
New York Central, aggregate 15,000 to 20,000 kegs of spikes
and bolts
and 4,000 to 5,000 tons of tie plates. A number of coal mine operators
have placed orders for light rails for shipment upon the termination
of
the bituminous coal strike.
Bids for the proposed Hudson River bridge at New York are estimated
to require 125,000 to 136,000 tons of steel, and are expected
to be taken
from July 15 to Aug. 1.
The "Iron Trade Review's" composite price on 14 leading
iron and
steel products this week is $36.49. This compares with
$36.50 last week
and $36.70 two weeks previous.
Further Conferences Between Bituminous Coal Miners
and Operators Leave Strike Unsettled.
As Grover Cleveland once said, "It is a condition and not
a theory that confronts us." But with conditions further
affected and emphasized as a result of the several joint conferences between operators and miners during the past week
in Chicago and Philadelphia, is it not now a question of,
"To have and to hold" rather than "To be or not to be"?
questions the "Coal and Coal Age Journal" in its July 7 review of the market. By some it is felt that the industry is
on the verge of a more general strike that will affect fields
so far not involved. They reason thus because of the rapid
change in some of the propositions that have been presented
and announcements now made, observes the "Journal," adding:
For instance, a wage proposition made but a few days ago at one of
the conferences, which was conciliatory and favorable to the
miners but
refused by their officials though acceptable to a large group of
the miners
themselves, would now seem impossible to repeat in view of later
competitive
announcements. Positive propositions have been made and positive
action
already taken in a further shutdown of important operations that
will not
reopen until it can be done on a competitive wage basis.
This should result in less production as a whole, but will it. Or
will the
Open-shop mines now producing better than eight million tons weekly
fill
up the gap. It is believed they can increase the production
another
million tone if the present disaffection among the miners does not
spread.
Therein lies the answer to the immediate future of the market,for current
prices have continued so attractive that storage stocks have dwindled
slowly, though many are still of the opinion that such stocks will yet rank
high among good investments. Frankly speaking. the "divining rod," of
prediction is gyrating so much there seems to be only one safe bet, which is,
The buyer can't lose at present prices. For even if a lower cost of production should prevail, its advantage to the buyer would be more than absorbed
change since April 1. The total output during the week ended June 25 is
estimated at 8,474,000 net tons. Compared with the output of the preceding week, in which working time was interrupted by local holidays, there
was an increase of 190,000 tons, or 2.3%.
ESTIMATED UNITED STATES PRODUCTION OF BITUMINOUS COAL
(NET TONS), INCLUDING COAL COKED.
1927
1926
Week. Cal. Yr.to Date
Week. Cal.Yr.to Date
Jine 11
8 524,000 253.864,000
9,624,000 241,208,000
Daily average
1,421,000
1,849,000
1,604,000
1,757.000
June 18_b
8,284,000 262,148,000
9,503,000 250,711.000
Daily average
1,381,000
1,829,000
1,584,000
1,750,000
June 25_c
8 474,000 270,622,000
9.846,000 260,557,000
Daily average
1.641,000
1,412,000
1,813,000
1.748,000
a Minus one day's production first week in January to equalize the number of
days in the two years. b Revised since last report. c Subject to revision.
The total quantity of soft coal produced during the calendar year 1927
to June 25 (approximately 149 working days) amounts to 270,622,006 net
tons. Figures for corresponding periods in other recent years are given
below:
1926
280,557,000 net tons
226.430,000 net tons
1924
1925
226,487,000 net tom
272,257,000 net tons
1923
WEEKLY PRODUCTION OF SOFT COAL BY STATES.
The production of soft coal during the week ended June 18 amounted to
8,284,000 net tons, a decrease of 240,000 tons, or 2.8%, from the output
in the preceding week. The following table apportions the tonnage by
States, and gives comparable figures for other recent years. As in many
weeks past, there appears no marked change in the general trend of production in any section of the country.
ESTIMATED WEEKLY PRODUCTION OF SOFT COAL BY STATES
(NET TONS).
Total Production for Week Ended
June
June 18
June 11
June 19
June 20 Average,
1927.
1927.
1926.
1925.b
1923.a
Alabama
303,000
315,000
366.000
329,000
388,000
Arkansas, Kansas, Missouri
and Oklahoma
107,000
121,000
146,000
151,000
199,000
Colorado
147.000
151,000
133,000
139,000
176,000
Illinois
75,000
65,000
949.000
880,000
1,247.000
Indiana
174,000
156,000
296,000
310,000
417,000
Iowa
7.000
6.000
75,000
67,000
89,000
Kentucky-East
955,000
899,000
901,000
777,000
664,000
West
438,000
450,000
237,000
184,000
183.000
Maryland
53,000
52,000
62,000
38,000
47.000
Michigan
12,000
10,000
5,000
12,000
7,000
Montana
40,000
39,000
35,000
38,000
38,000
New Mexico
45,000
46,000
51,000
46,000
39,000
North Dakota
10,000
10,000
13,000
14,000
17,000
Ohio
132,000
132,000
412,000
430,000
891.000
Pennsylvania
2 200,000 2,272,000 2,461,000 2,214,000 3,625,000
Tennessee
92.000
86,000
114,000
95,000
92,000
Texas.c
18,000
21,000
21,000
15,000
19,000
Utah
68,000
73,000
88,000
68,000
89.000
Virginia
270,000
278,000
244,000
240,000
238,000
Washington
34,000
38,000
45,000
39,000
43,000
West Virginia
3,013,000 3,207,000 2,795,000 2,209,000 2,243.000
Wyoming
89,000
95,000
105,000
86,000
83,000
Others
2,000
2,000
4,000
3,000
5.000
8,284,000 8,524,000 9,503,000 8,355.000 10,903,000
a Weekly rate maintained during the entire month. b Revised. c Revised
beginning W. C. R. No. 517.
164
[VOL. 125.
THE CHRONICLE
ANTHRACITE.
The total production of anthracite in the week'ended June 25 is estimated at 1,586,000 net tons, the lowest output recorded for any full-time
week since April 2. In comparison with the preceding week, this shows
a decrease of 82,000 tons, or 4.9%.
The cumulative production of anthracite from Jan. 1 to June 25 amounts
to 41,704,000 tons, about 19% higher than in the corresponding period
of 1926.
ESTIMATED UNITED STATES PRODUCTION OF ANTHRACITE
(NET TONS).
1926
1927
Week. Cal.Yr.toDate.a
Week EndedWeek. Cal.YrioDate.
31,056,000
2,083,000
June 11
1,732.000
38,450.000
33,088,000
2,032,000
June 18
1,668,000
40,118,000
35,175,000
2,087,000
June 25_ b
41,704,000
1,586,000
a Minus one day's Production first week in January to equalize number of days in
the two years. b Subject to revision.
BEEHIVE COKE.
Production of beehive coke continued to decline during the week ended
June 25. The total output is estimated at 131,000 net tons, a decrease
of 6,000 tons, or 4.4% from the output in the preceding week.
ESTIMATED PRODUCTION OF BEEHIVE COKE (NET TONS).
Week Ended
1927 to 1926 to
June 25 June 18 June 26
Dates
Date.
1026.
1927.6 1927.c
Pennsylvania and Ohio
100,000 105,600 155,000 3,445,000 5,284.000
400,000 380,000
12,000
West Virginia
14,000
15,000
139,000 399,000
7.000
5,000
4,000
Ala.. KY., Tenn. and Ga
175,000 196,000
5,000
Virginia
6,000
6,000
97,000 141,000
5,000
4,000
Colorado and New Mexico
3,000
93,000 90,000
3,000
3,000
3,000
Washington and Utah
131,000 137,000 187,000 4,349.000 6,490,000
United States total
29,000 43,000
31,000
23,000
22,000
Daily average
a Minus one day's production first week in January to equalize number of clays In
the two years. b Subject to revision. c Revised since last report.
From such preliminary figures as are at hand, the National
Coal Association estimates the production of bituminohs coal
in the United States during the week ended July 2 at 7,900,000 net tons. It may be necessary to make considerable
revision in these figures when complete car loading totals
for Friday and Saturday of last week become available.
From the incomplete information received, loadings on Friday dropped over 3,000 cars from the total of the preceding
Friday, while scattered reports for Saturday show that the
total for that day may reach only half the quantity of coal
loaded on the Saturdays immediately preceding. The loss
in tonnage resulted from the early beginning of the observance of the holiday on Independence Day.
TOTAL VALUES OF EXPORTS AND IMPORTS OF MERCHANDISE BY
GRAND DIVISIONS AND PRINCIPAL COUNTRIES.
Month of May.
Exports toGrand Divisions-
Europe
North America
South America
Asia
Oceania
Africa
Total
Principal Countries-
Belgium
Denmark
France
Germany
Greece
Italy
Netherlands
Norway
Soviet Russia in Europe
Spain
Sweden
Switzerland
United Kingdom
Canada_
Central America
Mexico
Cuba
Dominican Republic
Argentina
Brazil
Chile
Colombia
Ecuador
Peru
Uruguay
Venezuela
British India
British Malaya
China
Hong Kong
Dutch East Indies
Japan
Philippine Islands
Australia
New Zealand
British South Africa
Egypt
Total Value of Imports and Exports of Merchandise
by Grand Divisions and Principal Countries.
The Bureau of Foreign and Domestic Commerce of the
Department of Commerce at Washington has issued its
report showing the merchandise imports and exports by
grand divisions and principal countries for the months of
May and the 5 months ending with May for the years 1926
and 1927. The following is the table complete:
• Five Months Ending May
1927.
Grand Divisions-
Principal Countries-
Belgium
Denmark
France
Germany
Greece
Italy
Netherlands
Norway
Soviet Russia in Europe
Spain
Sweden
Switzerland
United Kingdom
Canada
Central America
Mexico
Cuba
Dominican Republic
Argentina
Brazil
Chile
Colombia
Ecuador
Peru
Uruguay
Venezuela
British India
British Malaya
China
Hong Kong
Dutch East Indies
Japan
Philippine Islands
Australia
New Zealand
British South Africa
Egypt
/926.
1927.
145,100,523 171,990.876 857,132,064 932,428,602
111,243,063 119,830,404 478,366,537 506,753,652
188,410,390
35,341,520 33,945,494 180,976,949 251,479.926
42,039,996 42,172,773 229,985,424 86.415,321
15,527,066 17,205,474 82,060,472 43,876,556
7,446.956 7,869,400 40,299,038
356,699,124 393,113,421 1,868,820,484 2,009,364,447
7,434,085
3,258,627
19,084,349
21,202,271
638,566
11,804,818
8,730,557
1,839,421
3,829,242
4,085,587
2,348,812
745,355
55,499,776
76,115,635
5.519,178
11,393,369
12,876,652
1,176,996
10,643,457
7,739,312
4,783,658
4,012,666
384,166
2,468,574
1,934,810
2,594,463
3,884,914
085,668
9,113,967
804,516
1,742,885
18,752,305
4,945,332
11,697,783
3,511,977
4,672,552
554,525
7.897.797
5,333,913
18,069,361
31,378,092
1,084,685
8.356,614
11,533,251
2,085,382
7,534,031
5,456,062
4,128,205
685,029
61,568,497
83,760,684
6,411,007
9,799,795
13,494,328
1,798,548
12,387,947
6.800,075
2,580,588
3,688,496
701,336
2.362,429
2,123,969
2,537,426
5,234,989
1,050,211
5,732,963
1,564,866
2,532,295
18,550.140
5,839.591
15,288,450
1,931,949
3,637,650
799,731
Month of May.
Imports from-
Europe
North America
South America
Asia
Oceania
Africa
Mid-Continent Fiduciary Conference of American
Total
Bankers Association at Mnneapolis, Sept. 1-3.
Dr. John Willis Baer, Vice-President of the PacificSouthwest Trust & Savngs Bank, and Supervisng Director
of the Pasadena and Altadona Branches, will be the principal
speaker at the banquet on Friday evening, Sept. 2, at
Minneapolis, Mimi., of the Mid-Continent Fiduciary Conference of the American Bankers' Association. The conference will be held in the Twin Cities, Sept. 1, 2, and 3, and
will be attended by representatives from Michigan, Wisconsin, Minnesota, North and South Dakota, Nebraska, Iowa,
Illinois, Indiana, Kentucky, Tennessee, Missouri, Kansas,
Oklahoma, Arkansas, Mississippi, Alabama, Louisiana, and
Texas. The banquet will be the outstanding event of the
conference.
1926.
1926.
1927.
42.205,210
23,744,358
116,467,479
111,379,506
3,036,969
66,080.978
44,763,947
10,085,841
18,804.642
26,206,906
15,310,718
3,489,817
352,047,566
288,660,386
29.856.155
59,768.894
73,088,728
5,840.598
59,223,373
36,404,219
21,256.672
20,958,948
2,388.091
12,440,055
9,339,384
14,938,649
20,626,611
6,224,800
47,048,020
5,367,861
10,216,387
103,985,937
28.829,487
64,416,885
16,600,048
21,137,567
3,211,227
48,066,651
25,545,562
86,216,602
180,379,871
7,240,289
51,390,666
57,146,231
9,611,733
27,087,878
30,080,396
17,654,220
3,529,820
359,310,251
328,866,260
30.657,036
47.844,154
69,306,503
7,409,926
64,151,630
41,138,067
14,774,758
21,072,386
2,463,058
10,748,200
10,756,464
19,437,937
34,824,008
6,001,337
40,633.461
7,800,888
13,641,803
113,254,145
25,913,516
71,557,635
13,927,701
21,290,179
4,476,211
Five Months Ending Mays
1927.
1926.
$
$
$
$
512,074.782
89,448,560 99,793,827 526,774,648 415,217.749
79,044,826 85,917.200 429,098,386 219,556,945
36.698,133 36,365,191 256,744.729 549,359,446
103,284,382 114,479,095 661,311,404 328,358,259
7,703,914 4,371,830 37,397,160
4,739,643 5.271,731 55,461,930 44.053,407
320,919,458 346,198.874 1,965,788,251 1,768,620,588
6,018,964
281,694
8,759,491
14,412,119
1,006,990
7,419.859
7,892,050
1,988.227
1,092,300
4,362.793
2,539,252
2,767,946
24,401,212
35,145,805
4,574,467
13,073,148
19,628,236
1,059,784
6,932,908
14,204,993
6,512,208
4,264,934
389.582
1,361,321
1,174,361
1,705,048
12,195,198
27,701,224
9,792,121
2,083,329
9,215,829
24,809,566
11,451,728
6,168,278
1,103,575
5,915,541
532,087
11,139,769
14,164.128
1,271,152
9,005,612
6,158,251
2,967,560
497,806
2.952,913
3.466.905
3,494,000
31,469,047
39,534,708
4,404,553
12,859,987
23,278,975
1,463,262
6,581,196
11,195,756
4,706.075
7,830,324
404,824
1,961.361
611,635
2,719,854
13,851,402
23,032,065
16,717,191
1,391,832
7,946,424
33,097,071
12,553,285
3,193,983
1,019,714
32,656,709
2,159,860
59,775,986
82,054,318
7.710.475
39,348,167
41,181,774
9,653,790
6,657,825
18,236,927
13,258,706
15,608,941
166,575,411
187,247,545
28,406,258
80,034,961
106,638,559
4,016,927
44.725,783
101,514,751
46,618,478
24,788,077
3,928,090
9,042,339
14,719,720
9.624,765
78,157,402
210,392,699
62,014,845
5,744,581
63,619,478
153,444,941
48,046,374
26,740,506
9.045,953
811,891
1,572,182
554,408
1,737,093
10,474,260
24,358,464
29,081,633
1,923.698
65,428,274
77,481.529
20,367,924
44,524,051
34,900,955
9,646,775
3,233,735
16,272,446
17,605.669
17,256,475
140,206,170
184,108,036
17,717,508
66,740,106
118,302,203
4,798,276
38,591,076
80,116,757
28,905,876
42,014.220
2,343,198
8,490,700
6,979,416
10,452,693
58,680,503
128,470,664
71,547,281
7,116,912
40,065.985
159,278,664
52,919,901
21,890,419
5,209,701
3,709,116
13,238,324
Current Events and Discussions
Week with the Federal Reserve Banks.
The consolidated-statement of condition of the Federal
Reserve banks onguly 6, made public by the Federal Reserve
Board, and which deals with the results for the twelve
Federal Reserve banks combined, shows increases for the
week of $10,400,000 in total bills and securities, of $48,400,000 in Federal Reserve note circulation, and of $11,400,000
in amounts due from foreign banks, and declines of $42,900,-.
000 in total reserves, of $58,100,000 in total deposits, and of
$12,200,000 in gold held abroad. Holdings of discounted
bills increased $29,500,000, while holdings of bills bought in
open market declined $17,100,000, and of United States
Government securities $1,900,000. After noting these facts,
the Federal Reserve Board proceeds as follows:
The
All of the Federal Reserve banks report increased holdings of discounted
bills except Boston, Philadelphia and Cleveland, the larger increases being
$41.700.000 at New York, $7,100,000 at San Francisco, and $4,900,000 at
Minneapolis. The Boston bank reported a decline of $21,300,000 in discounts and the Philadelphia bank of$10,400,000. Holdings ofacceptances
bought in open market declined $16,200,000 at the New York bank and
$2,900,000 at the Chicago bank. The System's holdings of United States
bonds and Treasury notes decreased $1,600,000 and $500,000, respectively,
during the week, while holdings of certificates of Indebtedness wore $200,000
larger than a week ago.
All the Federal Reserve banks report increases in Federal Reserve note
circulation for the week, the larger increases being $15,100,000 at Chicago
and $11,100,000 at San Francisco.
The statement in full, in comparison with the preceding
week and with the corresponding date last year, will be found
on subsequegt pages, namely, pages 218 and 219. A
summary of changes in the principal assest and liabilities
JULY 9 1927.]
THE CHRONICLE
165
of the Reserve banks during the week and the year ending CONDITION OF WEEKLY REPORTING MEMBER BANKS IN
CENTRAL RESERVE CITIES.
July 6 1927 is as follows:
July 6 1927. June 30 1927. July 7 1926.
Increases(+)or Decreases(—)
$
New York-53 Banks—
During
Loans and investments—total_ -6,746,714,000 6,709,749,000 6.298.165.000
Week.
Year.
Total reserves
—$42.900,000 +8199,000,000 Loans and discounts—total--4.843,061,000 4.817,478.000 4.477.377,000
Gold reserves
—32,400,000 +181,300.000
Total bills and securities
Secured by U.S. Government
+10.400,000 —151.000,000
Bills discounted, total
+29.500,000 —105,800,000
obligations
33,693.000
31,371.000
44,263,000
Secured by U.S. Government obligations +26.500,000 —18,000,000
Secured by stocks and bonds_2,225,814,000 2.216,145,000 2.127,238,000
Other bills discounted
All other loans and discounts _2,583,554.000 2,569,962,000 2,305,876.000
+3.000,000 —87,800,000
Bills bought in open market
—17.100.000 —38,500,000 Investments—total
1,903,653,000 1.892.271.000 1,820,788,000
U. S. Government securities, total
—1,900,000
U. S. Government sectwities_ 895,894,000 898,429.000 910,260.000
—800.000
Bonds
—1,600,000
+87.500.000
Other bonds,stocks & secur's_1,007.759,000 993.842.000 910.528,000
Treasury notes
—500,000 —150.200,000 Reserve balances with F.R.Bk. 715.975.000 799.731,000 730,516.000
Certificates of indebtedness
+200.000
60,964.000
59,295,000
+61,900,000 Cash in vault
69.152.000
Federal Reserve notes in circulation
+48,000,000
5,347,713.000 5,418,642,000 5,071.545.000
+13,600,000 Net demand deposits
Total deposits
1,006.139,000
—58,100,000
1,010;935.000
+61,800,000 Time deposits
844,853,000
Members' reserve deposits
14,632.000
—44,100.000
17,986,000
+57,500.000 Government deposits
27,270.000
Government deposits
86.399.000 104.244,000
—19,600.000
110,371,000
—5.500,000 Due from banks
1,234,100.000 1,156.532.000 1,097.140,000
Due to banks
Borrowings from Federal Re85,492.000
Bank—total
46,848.000 184,321.000
serve
The Member Banks of the Federal Reserve System.
The Federal Reserve Board's condition statement of 668
reporting member banks in leading cities as of June 29 shows
increases for the week of $87,000,000 in loans and investments,$127,000,000 in net demand deposits and $36,000,000
in borrowings from the Federal Reserve banks.
Loans on stocks and bonds, including United States Government obligations, were $62,000,000 above the previous
week's total, increases of $54,000,000 in the New York
district, $24,000,000 in the Boston district and $9,000,000
in the Philadelphia district being offset in part by a reduction of $30,000,000 in the Cleveland district. "All other"
loans and discounts increased $28,000,000 and $11,000,000 at
banks in the New York and Chicago districts, respectively,
and $36,000,000 at all reporting banks. As previously
explained, the figures for these member banks are always a
week behind those for the Reserve banks themselves. The
statement goes on to say:
Holdings of United States securities declined $26,000,000 during the
week, of which $20,000,000 was in the New York district. Holdings of
other bonds, stocks and securities were $14,000.000 larger than a week ago
at all reporting members and $9,000,000 larger at reporting member banks
in the Boston district.
Net demand deposits increased $127,000,000, the principal
changes
including increases of $129.000,000 and $30,000,000 in the New York and
Chicago districts, respectively, and a reduction of $49,000,000
in the
Cleveland district. Time deposits were $26,000,000 higher than on June
22
most of tho increase occurring in the Boston and San Francisco
districts.
Borrowings from the Federal Reserve banks were $36.000,000 above the.
previous week's figure, banks in the Boston, Cleveland, Philadelphia,
St. Louis and New York districts reporting increases, while
those in other
districts reported small reductions.
On a subsequent page—that is, on page 219—we give the
figures in full contained in this latest weekly return of the
member banks of the Reserve System. In the following is
furnished a summary of the changes in the principal items
as compared with a week ago and with last year.
Increase (-K or Decrease (—)
During
Week.
Year.
Loans and investments—total
+$87.021.000 +$951.944.000
Loans and discounts—total
+98.785.000
+582,527,000
Secured by U. S. Govt. obligations
—2,726.000 —29,577,000
Secured by stocks and bonds
+65.411,000 +347,408.000
All other loans and discounts
+36,100,000
+264,696.000
Investments—total
—11,764,000 +369,417.000
U.S. Government securities
—26,028,000
+57,401,000
Other bonds, stocks and securities
14,264,000 +312,016.000
Reserve balances with Fed. Reserve banks
+90.575.000
.3 9,000
Cash in vault
.000
—6,962.000
Net demand deposits
+127,084.000 +129,280.000
Time deposits
+25,764,000 +562,274.000
Government deposits
—38,285,000
—2,140,000
Due from banks
—19,077,000
Due to banks
+82,132,000
Borrowings from Fed. Reserve banks—total_ +35,940,000
+20,069.000
Secured by U. S. Govt. obligations
+33.187,000
+42.861,000
All other
+2,753,000 —22,792,000
Return of Member Banks for New York and Chicago
Federal Reserve Districts for a Week Later.
Beginning with the returns for June 29 the Federal Reserve Board also began to give out the figures of the member
banks in the New York Federal Reserve District, as well
as those in the Chicago Reserve District, on Thursdays,
simultaneously with the figures for the Reserve banks
themselves, and for the same week, instead of waiting until
the following Monday, before which time the statistics covering the entire body of reporting member banks—now 668
cannot be got ready.
The following is the statement for the New York member
banks and that for the Chicago member banks thus issued
in advance of the full statement of the member banks,
which will not be available until the coming Monday. The
New York statement of course also includes the brokers'
loans of the reporting member banks, which for the latest
week show a further increase over those of the preceding
week, the grand aggreate of these loans for July 7 being
$3,126,327,000, against $3,117,920,000 on June 29:
Secured by U. S. Government
81.450.000
39,850.000 136.550,000
obligations
4,042,000
6,998.000
All other
47,771,000
dealers
and
brokers
Loans to
(secured bystocks& bonds):
1,105,949,000 1,131,784,000 1.019.298,000
For own account
For account of out-of-town
1,155,799,000 1,143.736,000 951.852,000
banks
864.579.000 842,400.000 631.638.000
For account of others
Total
3,126,327.000 3,117,920.000 2.602.788,000
2,377,777,000 2,368,550,000 1.940,069.000
On demand
748,550,000 749,370.000 662,719,000
On time
Chicago-45 Banks—
Loans and investments—total_ -1.797.882,000 1,821.560.000 1.715.791,000
Loans and discounts—total-- _.i.389.100,000 1.401,869,000 1,341.370,000
Secured by U. S. Government
13,295.000
obligations
Secured by stocks and bonds.. 696,429,000
All other loans and discounts.. 679.376.000
408.782.000
Investments—total
13,117.000
713,924,000
674.828,000
419.691.000
15,970,000
616,932,000
708.468.000
374,421.000
U. S. Government securities_ 177.636.000 188,189,000 165,678,000
Other bonds,stocks & secur's_ 231,146,000 231,502.000 208,743,000
Reserve balances with F.R.Bk. 174,790.000 161.211.000 154,695,000
21.759,000
Cash in vault
20.368,000
24,014,000
1,208,324,000 1.225.078.000 1,169,471,000
Net demand deposits
547,958,000 544.897,000 514.781,000
Time deposits
9,847,000
Government deposits
12,119,000
5,931,000
142,319,000 140.948,000 161.182.000
Due from banks
379,985,000 344,273,000 394,065.000
Due to banks
Borrowings from Federal Re26,149,000
21,188,000
serve Bank—total
14,362,000
Secured by U.S. Government
obligations
All other
23,125,00
3,024,000
14,525,000
6,663,000
10.079,000
4,283,000
Summary of Conditions in World's Markets According
to Cablegrams and Other Reports to the
Department of Commerce.
The Department of Commerce at Washington releases
for publication to-day (July 9) the following summary of
conditions abroad, based on advices by cable and other
means of communication:
AUSTRIA.
The improved industrial and trade situation is reflected in increased
demands of the local banks for accommodation, and likewise in the condition of the National Bank, where note circulation has advanced along with
discount items and a corresponding shift in current accounts; currency covering decreased to 50.7% on June 7, as against 58.4% at the end of last
year, and 59.3% at the end of June last year. The textile mills are for
the most part operating close to normal capacity, believed due in considerable part to increased demands from the German market. Prices of
finished cotton textile goods have not advanced in the same measure as raw
cotton prices, but it is reported that the cotton spinners feel that present
cotton prices are fully as high as the general trade situation justifies and
are now inclined to await developments OD the new crop.
CANADA.
General trade has been stimulated by warm weather. Hide and leather
prices are still advancing, but potato prices have declined on the influence
of lower quotations for the new United States crop. The building trades
continue busy. The index number of security prices at Montreal and
Toronto fell 15 points during the week ended June 25. Greater activity
In manufacturing, construction, transportation and mining raised the figure
of employment on June 1 to the highest level in seven years. The volume
of building contracts awarded during the first half of this year totaled
over 191 million dollars, a decline in value of 1.6% from the record of last
year, although the volume was well maintained. Montreal has been selected as the site for the airship mooring mast to be erected by the Canadian Government at an estimated cost of $375,000.
CZECHOSLOVAKIA.
The revival in the Czechoslovak industrial situation, apparent for some
time past, is being further extended by the continued satisfactory volume of
exports and the domestic re-stocking of raw materials, now taking place.
Practically all industries, with few exceptions, are averaging near capacity
production. Money rates have stiffened somewhat as a result of greater
demand. In general, prospects may be said to be good, except for the
trade losses which are being brought about through the abrogation of the
commercial treaty with Austria. A reform of the direct tax system, providing reductions, has been made effective through legislation; some of the
reductions have been made retroactive to January. May foreign trade registered another favorable balance. Commercial failures, as well as unemployment, showed declines.
GREAT BRITAIN.
With the notable exception of the coal business, the British trade position is generally satisfactory.
The large volumes of orders which accumulated during the 1926 period
of industrial disability have now practically been worked off, and the active
THE CHRONICLE
166
period of making up arrears is being succeeded by one of cautious buying
which is expected to last until the dominant price factor becomes more
stable. The present and anticipated hand-to-mouth business, however, is
expected to prove sufficient to maintain factory operations until the placement of autumn orders. So far this year industrial activity has shown a
consistent improvement. The general unemployment figure was 987,300
on June 20, as compared with 1,034,000 near the end of April 1926 (the
latest figure previous to the coal stoppage). Males registered as wholly
unemployed aggregated 527,600 on June 20. Bank clearings during the
first six months of 1927 were 5% above the volume for the first half of
1926; while the industrial production volume has been the greatest since
the war. The iron and steel outputs have been especially large. Idle tonnage has been decreasing substantially. Foreign trade movements by quantities are encouraging in many respects. The apparent slowing up in
activity during the latter part of June has to do with the inventory period
and the preparation of bank balance sheets while the summer holiday slack
is already beginning, although it is no more pronounced than usual. The
general financial position is strong; the Government budget shows a decline in first quarter expenditures as compared with a year ago. Money
rates are firm; railway receipts are improving beyond the incrcease occasioned by the higher rates now in force.
GREECE.
Drachma exchange has continued to improve, reaching a new high of
$0.013642 recently, as compared with $0.012983 on June 1, in response to
more stabilized conditions. The proposed budget for 1927-28 as presented
to Parliament shows a deficit of 49,000,000 drachmas; this report includes
deficits from previous years totaling 2,551,000,000 drachmas. In this
respect it is indicated that the approval of the League of Nations will be
asked for an additional loan to cover the budget deficit and for foreign
credits for the purpose of stabilizing drachma exchange. On June 6 the
discount rate at the National Bank of Greece was reduced from 11 to 10%.
HUNGARY.
Imports in April amounted to 92,300,000 pengo, and exports to 53,700,000, leaving an adverse trade balance of 38,600,000 pengo. The adverse
trade balance for the first four months of 1927 amounts to 113,400,000
pengo, compared with an adverse balance of 52,000,000 in the same period
of 1926. Insolvencies in April numbered 86 (of which 9 were bankruptcies and 77 forced settlements, compared with a total of 109 in April 1926.
State revenues collected in the first ten months of the present fiscal year
amounted to 736,600,000 pengo, as contrasted with 649,500,000, and art
amount of 668,300,000 pengo collected in the same period last year.
Italian bank note circulation showed still further decrease on May 31,
when total circulation amounted to 17,446,924,000 lire. This is a reduction
of 140,000,000 lire from the figures of April 30 and 893,200,000 lire lower
than the total obtaining on Dec. 31 1926.
LATVIA.
Latvia's foreign trade for the first quarter shows a decrease in the total
value of both exports and imports as compared with the corresponding
period of 1926, and a reduction in the unfavorable trade balance from
16,805,000 lats to 5,635,000 lath (lat equals $0.193). With the exception
of coal, decreases occurred in value of importations of nearly all leading
articles. Increases in practically all the leading export items, particularly
lumber, took place during the quarter.
POLAND.
Preliminary data on collections of revenues from taxation and State
monopolies, which are estimated in the budget to yield about 90% of all
the State revenues, indicate an increase of 10% over the receipts from the
same sources in April last (178,400,000 zlotys, against 162,800,000 zlotys);
a proportionate excess of 30% over the annual budgetary estimates, and an
Increase of 50% over May 1926. Increased activity in the chief industries
and in building construction resulted in a decrease of more than 15% in
the number of unemployed since the end of April.
SWEDEN.
It is reported that an agreement has been signed between the General
Swedish Electric Co. and the Central Committee on Concessions of the
U. S. S. R. Under the agreement the Swedish company receives a concession for the building of factories at Jaroslav for the manufacture of electric
equipment. The agreement is for a period of 35 years. The company undertakes to produce annually 4,000,000 tons of equipment during 1930 and
1931. The company is reported to already have orders amounting to several million crowns.
AUSTRALIA.
Business continues seasonally dull in the large trading centres, and
money is still tight. Rains are badly needed in scale agricultural and
pastoral sections. It is now estimated in Australia that the sugar export
surplus for the latest crop will reach 100,000 tons. Wheat shipments improved somewhat during the week ending June 30. The final wool sale at
Sydney showed no change in prices from the preceding sale.
JAPAN.
On account of extreme dry weather prevailing in Japan, rice transplanting operations have been delayed and fear is expressed in Tokio as to this
year's crop. The note issue of the Bank of Japan on June 28 had increased
to 1,456,000,000 yen (1 yen equaled $0.4725 current exchange), and advances to other banks decreased to 833,000,000 yen. The City of Yokohama has placed an increase averaging 100% on its annual automobile tax,
which previously ranged from 75 to 125 yen per car, according to seating
capacity.
NETHERLANDS EAST INDIES.
Import business of Netherlands India continues in satisfactory condition.
Some anxiety prevails in Soerabaya, however, on account of difficulties
which some Chinese sugar dealers are experiencing. Soerabaya is the commercial centre of Java's sugar district.
PHILIPPINE ISLANDS.
Trans-Pacific service was inaugurated June 27 by the Radio Corporation
of the Philippines. The strike of stevedores, reported last week, has been
settled and the laborers have returned to work. The Manila copra market
is steady at slightly higher prices. Arrivals are still below normal, but
exceed expectations. Two oil mills are now inoperative. The provincial
equivalent of resecado (dried copra) delivered at Manila is 13.12 pesos
per picul of 139 pounds (1 peso equas $0.50). Abaca trade continues quiet,
with a slightly better undertone. Production is fairly heavy. The latest
price quotations of 37 pesos per picul for grade ; I, 81; JUS, 25.50;
JUK, 21, and L, 19.50, are slightly higher than last week.
[VoL. 125.
ConferencesTof Officersfof Banks of England, France
and Germany With Governor Strong of New York
Federal Reserve Bank—French Franc
Stabilization not Discussed.
A statement declaring that "there has been and could be
no discussion of any reparation questions, nor of the stabilization of the French franc" was issued yesterday (July 8) by
the Federal Reserve Bank of New York about the conversations which have taken place during the week between
Governor Strong of the Federal Reserve Bank of New York,
and the officers of the Bank of England, the Bank of France
and the German Reichsbank. The arrival here of Montagu
C. Norman, Governor of the Bank of England, Dr. Hjalmar
Schacht, President of the Reichsbank, Charles Rist, Deputy
Governor of the Bank of France, and Dr. Ricard of the last
named bank was noted in our issue of a week ago, page 35.
The conversations were brought wider way almost im
mediately following the arrival of the visiting bankers, and
on Thursday, June 7, when with Governor Strong they
spent the day in Washington, the report was current that
the conferences had in view the return of the French Franc
to a gold basis. Governor Strong's statement of yesterday
declaring that the question of the Franc stabilization had
not entered into the conversations said that the subjects
touched upon had included the relationship of the "respective
rates of discount, the operation of the so-called gold exchange
standard . . . the expensive shipments of gold, . . .
the purchasing power of gold, &c." We quote the statement
herewith:
The expected presence in this country of officers of the Bank of England,
the Bank of France, and the Reichsbank was explained by the Federal
Reserve Bank prior to their arrival. No statement could be made as
to any specific matters to be discussed as no topics had been suggested
in advance.
During the past week their time has been devoted mainly to exchange
of views regarding financial and economic matters, the policies of the
banks of issue and like subjects which are of concern to these institutions.
These subjects naturally include the relationship of their espective rates
of discount—the operation of the so-called gold exchange standard which
has had so extensive a development since the war—the expensive shipments of gold which necessarily affect the reserves of the banks of issue—
the purchasing power of gold—and various proposals to promote closer
co-operation.
Methods for dealing with these subjects are not capable of exact definition.
but the friendliness and better understanding resulting from these exchanges of views cannot fail to be helpful.
Yesterday was spent in Washington in order to make calls of courtesy
upon the members of the Federal Reserve Board, and to attend a luncheon
given by the Board at which the officers of the Treasury Department were
present.
There has been and could be no discussion of any reparation questions,
nor of the stabilization of the French franc.
The above was the first official statement to be given out
regarding the parleyst the various newspapers offering
conjectures as to the issues coming before the conferees.
The Washington correspondent of the New York "Times"
in his advices on July 7relative to the conferences said in part:
The return of France to a gold basis, with consequent stabilization of
the franc, will be the outcome of conferences which were begun in Washington to-day between officials of Governmental financial institutions of the
United States, Great Britain, France and Germany.
These conferences, a virtual continuation of exchanges in New York
between the official representatives of the four nations named and important
private banks, laid the foundation for French monetary stabilization.
Apparently this is the chief purpose of the conferences now in progress.
There seems to be every assurance that the unsettled world financial
situation, due in part to the course of France in creating huge funds of gold
In the United States and England, will be straightened out.
Through the unequal distribution of the world gold supply, of which
more than half, or about $4,600,000,000, is now in the United States, and
the failure of France to return to a gold basis, the international financial
situation has been extremely unsatisfactory, and it was with this state of
affairs in mind that the American and foreign Governmental banking
representatives met here today.
Will Revalue the Franc.
As the most important outcome of those conferences, France is expected
to go en a gold basis within a matter of weeks, probably in August, with
the value of the franc fixed at five to one, which means that the Bank of
France will give one louts, whose pre-war value was approximately $4 for
each 100-franc note.
Reduced to its primary basis, the franc under the fixed gold standard
will be worth about four cents, instead of slightly less than 20 cents, its
value before the World War turned things financial and otherwise topsyturvy.
From the Washington account July 7 to the New York
"Journal of Commerce," we take the following:
During the stay of the bankers in Washington great secrecy was main-tallied as to their conversations with Under-Secretary of the Treasury
Ogden L. Mills and Governor Crissinger of the Federal Reserve Board.
Efforts to secure from them a statement tas to their activities here were
of no avail, and this has led to much speculation in and out of Government
circles.
Norman at Conference.
The leading figures in the conference were Sir Montagu C. Norman,
governor of the Bank of jEngland; Dr. Charles Rist, deputy governor.
Bank of France; Dt. Hialmar Schacht, President the Reichsbank; Paul
Ricsard, chief economist of the Bank of France; Governor Crissinger and
Governor Strong.
It was learned to-day that Acting Secretary of the Treasury Mills has just
returned from passing three days with them at his Long Island estate, where
he entertained them.
JULY 9 1927.]
THE CHRONICLE
Governor Crissinger, who acted as host to the visiting delegates, was
disinclined to divulge the exact nature of the conference, but a few minutes
before boarding the train on which he accompanied the delegation on its
return to New York this afternoon, the head of the Federal Reserve Board
Indicated that Governor Strong of the New York Federal Reserve Bank
will issue any statement that might be made public. "if such an announcement is forthcoming."
Stabilization An Issue.
Notable among the suggestions advanced as bearing on the conference
is the question of world stabilization of currency, probably wiht particular
reference to France. This theory apparently emanates from the fact that
the French Government now has gold reserve in excess of $500,000,000 in
this country, and probably as much distributed in other countries, piled up
in the course of stabilization of the franc. Another reason for this speculation occurred through the presence of M. Ricer& who was tendered the
courtesy of a special interpreter. Some quarters contend that amore even
distribution of the world's supply of monetary gold, half of which is now
held by the United States, is one of the principal questions discussed to-day.
The question of the worlds stock of gold and its uneven distribution was
discused in the latest of the Federal Reserve Bulletin which showed the
United States had at the end of May in excess of $4,600,000,000.
In this connection it is pointed out that during the month of May the
most widely noted development in the money markets of the world was the
addition of $90.000,000 to the world's effective monetary stock through
the release of gold pledged during the war by the Bank of France with the
Bank of England as collateral for a loan to the French Government. This
gave rise, according to the Federal Reserve Bulletin, to an export of $30,000,000 of gold to the United States, in addition to a purchase abroad of
$60,000,000 of gold by the Federal Reserve banks.
It is noticeable that none of this gold has been included in the United
States reserves, and because of the explanation given at the time of the effect "the amount is held earmarked for the Reserve banks by a foreign
correspondent," the question of dickering with the United States arises.
Rail Bonds Likely Topic.
The possibility of floating on the financial markets of the world the German Railway bonds, held by the Reparations Commission as security for
the payment of German reparations, also is believed to have been discussed. The foreign capital investment of the United States, recently
estimated at $12,300,000,000, was also given consideration as a subject
discussed by the delegates.
Early this morning the delegates called at the office of Governor Crissinger, where they remained for more than one hour and later conferred with
Acting Secretary of the Treasury Mills. They were later the guests,
along with other Treasury officials, at a luncheon tendered by Governor
Crissinger at the New Willard.
In addition to the banking representatives of Great Britain, France and
Germany, other guests of the luncheon included Acting Secretary Mills,
Governor Strong, George L. Harrison, deputy governor Federal Reserve
Bank of New York; Carl T. Shuneman, Assistant Secretary of Treasury;
Seymour Lowman, Assistant Secretary of the Treasury; Charles S. Hamlin,
A. 0, Miller, G. R. James, E. H. Cunningham, members of the Federal
Reserve Board; Colonel J. W. McIntosh, Comptroller of the Currency, and
R. B. Warren, Foreign Department, Federal Reserve Bank of New York.
President Schach of the Reichsbank is to return to Europe
on Wednesday next.
Deputy-Governor Rist of Bank of France
Here Unofficially.
The following is from the New York "Times" of July 6:
The visit of Charles Mat, Deputy-Governor of the Bank of
France,
to America and his conferences at the Federal Reserve Bank of
New
York with Benjamin Strong, Governor of the latter;
Montagu Norman.
Governor of the Bank of England, and Hialmar Schacht, Governor of
the Reichsbank,is in no sense an official mission of the French
Government,
it was said in dispatches from Paris yesterday.
This information evoked no surprise in financial or banking circles,
as it was known from the start of the conferences that none of the
officials
was here to represent his Government. Mr. RLst will not confer with
any officials of the United States Treasury nor with private
bankers in
the Interest of the French Government, the dispatches said.
Premier Poincare of France not in Favor ofStabilization
of Franc at this Time.
From Paris yesterday (July 8) the Associated Press reported the following advices:
While aware that the question of stabilizing the franc is under discussion
by international banking officials in the United States, Premier Poincare is
understood to favor standing upon the present practical stabilization until
after the elections next May.
There are two currents of opinion in the Cabinet. One is that the present
price of approximately twenty-five to the dollar is as high as the franc
ought to be pegged. The other, which is probably the minority view, is
that the franc might be stabilized at a considerably higher rate.
Some financiers outside the Government, such as Henry de Rothschild,
are credited with the belief that the value might be fixed as high as ten to
the dollar.
The discussions in the United States over stabilization are tied up with the
question of France's share of the German railroad bonds, which the French
Government desires to utilize toward paying off her international obligations.
The position of the Bank of England, already communicated to the
Bank of France, is that the railroad bonds cannot be used for
such purpose
until after stabilization.
As for the French Treasury, it feels that its position now is so strong that
there is no danger of further fluctuation of the franc. The amount of
foreign exchange held by the Bank of France is said to total $1,000,000,000,
which is regarded as ample to provide against any contingency, and part of
which might be used to buy gold from the American Federal Reserve Bank.
167
This will be the last of his series of meetings with foreign financial leaders,
aiming at further friendly co-operation in Belgium's financial restoration
and stabilization policy.
How French Bank Buys Exchange.
The New York "Times," in its column "Topics of Wall
Street," printed the following in its issue of July 3:
The fact that the Bank of France note circulation has been reduced
more than 1,000,000.000 francs from a year ago, has caused discussion
of how it was possible fo prevent a great increase when the bank's purchases of ftreign exchange, now estimated to have exceeded 20,000,000,000
francs, were effected under the authority granted the bank to issue new
circulation for the purpose. The answer made last week in a well-informed
quarter was that no issue whatever of actual franc notes has occurred in
connection with these purchases. When the foreign exchange bills are
sold to the Bank of France, it pays'for them by crediting the bank which
sells them with a deposit representing the amount of francs involved in
the purchase. Since the Bank of France pays no interest on such deposits
and since the Treasury offers a small interest rate for temporary use of
money, the private bank usually withdraws the deposit from the Bank of
France and pays it over to the Treasury. But as soon as the Treasury
finds this account increasing, it turns an equivalent amount back to the
Bank of Franc,through repayment on the bank's advance to the State.
No issue of nptes is involved on any of the three transactions.
Increase of Two Billion Francs in French Budget Next
Year Forecast by Premier Poincare.
The expense of running the French Government next year
will be almost 2,000,000,000 francs above the 1927 figures,
according to figures presented in the Chamber of Deputies
on June 27 by Premier Poincare, who, nevertheless, expects
that the Income of the Treasury will exceed its expenditures.
The Associated Press advices state:
The government's hopes and intentions from the fiscal standpoint were
transmitted to the Finance Committee of the Chamber of Deputies to-day
in along document prepared by the Premier,who is also Minister of Finance.
The document partakes of the nature of a budget speech and will form the
financial plank in many candidates' political platforms in the forthcoming
elections.
The budget for 1928 envisages receipts of 42,160,682,651 francs (about
$1,644,000,000 at the present rate of exchange), and expenditures of 41,527,952,171 francs (about $1,619,000,000), leaving a surplus of 632,730.480 francs (about $25,000,000)•
The New York "Times" advices from Paris (copyright)
referring to the above figures, said:
On the face of it,this appears to show a reduction from this year's expenditures. But there is room for the explanation that there has been established
a sinking fund for the floating debt, which must be fed to the extent of
8.000,000.000 francs annually, and that about five of these eight billions
must come from resources Which in the past have been included in the
budget. Furthermore, M. Poincare explains that there will be additional
appropriations for increased pay for State employees, which will call for the
expenditure of 400,000,000 francs additional. Therefore, on the basis of
former budgets, next year's budget will represent nearly 47,000,000,000
francs as measuring the burden on the French taxpayers. The Premier
insists that there is every reasonable expectation that the budget will be
balanced. pointing out that tax receipts in the last few months have been
above the estimates.
Bond Interest Rate Cut.
The budget statement shows that the average rate for national defense
bonds has been cut from 6 to 3%, but there remains about fifty billion in
theres securities extant. The improvement has been in doing away with
the one month, three months and six months bonds, which had been a
constant threat to the standing of the Treasury.
The report further refers to the advances made to the Treasury, with
which advances the Govermnent and the Bank of France have largely
engineered the purchase of some $900,000.000 worth of dollar and pound
assets ill the last eight months. It is believed that the State has obtained
in this .way advances of more than 10,000,000,000 francs. The Premier
promises that this indebtedness will not be increased and says measures
are being taken to reduce it.
M.Poincare starts his report with a word of warning:
"Although it has improved the condition of our public finances is still
far from definite stability," he says. "We have been consolidating our
public debt, but it remains very heavy. The future of our money may yet
appear uncertain."
The Premier sayes the budget can be balanced without new taxes, and,
while he recognizes grounds for the claim for the reduction of certain taxes,
due to the effects of the relative stability of the franc, he expresses the
opinion that it would be better not to take definite measures now in that
direction.
British Government's New Trade Union Bill—Report
of Mackenzie Mission.
The purpose of the British Government's new Trade Union
bill as a whole is not to attack but to defend the workingman
—not to suppress unionism but to give it legal status,
according to the review published July 2 by Dominick &
Dominick. The review goes on to say that it makes a
general strike so clearly illegal that the country will never
have another. The new Act may be considered as a step
forward; a sign, not of reaction but of progress, and it is
expected to work out as such in its practical application to
industrial relations." The further comments of Dominick
& Dominick, follow:
Louis Frank, Governor of Bank of Belgium, to
Visit United States.
The British Government's Trades Union Labor bill, designed to make
According to Brussels (Belgium) Associated Press advices
general
such as that of May 1926, illegal, passed its third and last
July 6, Louis Frank, Governor of the Bank of Belgium, reading strikes,
in the House of Commons on June 24, and its enactment into law
intends to sail for the United States on the Belgenland is now a practical certainty. Considerable change has been made in the
July 15, with a view to meeting American financiers. The original form and the bill will now go to the House of Lords for debate and
possibly further amendment. Extraordinary Interest has been manifested
cablegrams said:
in the bill during its stormy passage and in its probable effects, and it is
168
THE CHRONICLE
quite likely that its operation will be followed with equal watchfulness
abroad no less than in England itself.
The Trades Union bill declares that any strike is illegal other than that
within an industry or trade in which the strikers are affected by the immediate question in dispute. It also makes it unlawful to appropriate
money for the furtherance of such strikes. No funds may be levied for
political purposes beyond those which the Trade Union member must
stipulate in writing, after the passage of the bill, as his voluntary chntribution for that purpose.
British labor has recently been moving toward closer co-operation with
industrial organizations. The British Mission, headed by Sir William
Mackenzie, which recently made an investigation of industrial conditions in
America, reported that "industrial combinations in the United States have
resulted in cheaper production and lower selling prices." It also directed
attention to standardization and simplification of products and management, and to the attitude here toward labor and industrial relations. It is
not believed that precipitation of the bill at this time will offer any deterrent
to the steady growth of conciliation and co-operation in British industry.
Under the Industrial Courts Act of 1919, which would be supplemental to
the proposed law, conciliation machinery in each industry is provided by
requiring the Minister of Labor to employ all methods of securing a settlement before referring the dispute to arbitration. Conservatives claim that
any further machinery such as boards of investigation—one of the proposed
amendments to the Trade Union Labor bill—would place the whole future
of arbitration in jeopardy, by introducing the element of compulsion in
dealing with labor difficulties. It is indicated, however, that the Minister
of Labor will now make an investigation of all means of settling trade
disputes.
In Canada,under the Industrial Disputes Act of 1907, up to March 1924,
the number of applicants received for boards totaled 619, while the strikes
not averted or ended totaled only 137. For the year 1923-24,the applicants
numbered 28 and the number of strikes was nil.
The Conciliation Service of the Department of Labor in America reported
that within the last fiscal year, 500 disputes were handled and 85% were
settled through negotiation.
Mr. Clynes, deputy Labor leader, who has been leading the opposition
of the Labor Party to the bill, has pledged the party to repeal the measure
at the first opportunity. The railroad workers in England have been
counseled by Mr. J. H. Thomas, Labor M.P., not to strike in protest
against the bill, but to fight it through Parliamentary action.
The new ruling regarding the levy for political purposes 113 particularly
resented by the Socialists. At the present time, a levy of one penny per
month per member, which applies to four million trade-unionists, is made
for political purposes.
By requiring the workers to stipulate their contribution in advance, and
with the formidable machinery necessary for collection, the Laborites and
Socialists claim that they will be greatly handicapped in financing their
future campaigns. Mr. Neville Chamberlain, Minister of Health, in a
recent speech pointed out that the bill only provided that no man should be
compelled to contribute to political funds unless he expressly wished to do
so. It now becomes impossible for trade union leaders to use the dues of
members for political purposes without their consent.
The purpose of the measure as a whole is not to attack, but to defend the
British workingman—not to suppress unionism but to give it a legal status.
Liberia Pays Off War Debt to U. S.
Liberia is the second nation to pay off its entire war debt
to the United States,having turned over to the U.S. Treasury
on July 6 a check for $35,610. A dispatch from Washington
to the New York "Times" July 6 stated:
Liberia remained neutral in the World War until the United States
severed relations with Germany, and when this country went to war with
Germany followed the same course.
Under the provisions of the Liberty Loan acts Liberia endeavored to
borrow an allotment of $5,000.000 from the United States, but this request
was contested in Congress and only a small installment was obtained. In
repaying this loan to-day, Consul Lyon said:
"You will be pleased to know that the republic is entering upon a prosperous career, that her economic conditions have been wonderfully improved since the close of the war, that the opening up of the country to
American capitalists marks a new day for the government and the people
of the republic."
A letter written by Secretary Mellon, thanking the republic and calking attention to the fact that but one other nation has made payment
of its indebtedness without recourse of funding agreements, was handed
to Consul Lyon. The other nation is Cuba.
The principal amount of Liberia's debt was $26,000, the remainder of
the payment representing interest.
City of Berlin Loan Floated in London Oversubscribed.
J. Henry Schroder Banking Corporation announced early
this week that it had received advices from its London offices
that the £5,000,000 City of Berlin 6% 30-year loan offered
there at 983/i was 23' times oversubscribed. Reference to
the proposed loan was made in these columns June 25, page
8710; it appears that the rate borne by the issue is 6% and
not 63/2% as had been reported. In announcing the approval by the German Ministry of Finance on June 30 of
the loan (70,000,000 marks) to be floated by the municipality
of Berlin in London. Berlin Associated Press advices that
date said:
The loan will be one of the largest German post-war loans underwritten
by the English money market.
The municipality originally sought a loan of 100,000,000 marks, but the
Ministry of Finance ordered a cut of 30,000,000 in accordance with the
warning of the Reichsbank to German municipalities to curtail loan flotations abroad. Berlin will use the funds for needed municipal improvements.
Forthcoming Offering of $30,000,000 Bonds of Central
Bank for Agriculture, Germany.
The next important piece of foreign financing to be offered
here is expected to be $30,000,000 bonds of the Central
Bank for Agriculture, Germany. The same syndicate
(headed by the National City Company)which offered the
original issue of $35,000,000 7% bonds of this insitution in
[VOL. 125.
September, 1925, is understood to be preparing to offer the
new block of bonds which will carry a 6% coupon and will be
offered at a slight discount. Available information indicates
concerted demand for the new bonds from abroad, materially
reducing the amount available for distribution in this market.
When the bank began operations two years ago, its paid up
capital was $40,476,190 while to-day the capital is $73,809,524, which gradually may be increased until capital and surplus reach $119,047,619. The earnings statement of the
bank for 1926, the first full year's operation, are said to show
interest earned 1.9 times, a very large ratio for a government agricultural credit organization organized primarily
as a public trust and not for profit.
Italian Budget at End of May Shows Surplus of 261
Million Lire.
Romolo Angelone Commercial Attache of the Royal
Italian Embassy announces on June 30 the receipt of a
cablegram from Count Volpi, the Italian Minister of Finance,
dealing with the Italian budget and financial situation.
The following is the information supplied:
At the end of May last, the Italian budget showed an effective surplus
of 261 lire, showing, thus, an increase of 87 million over the estimates.
If one should consider however that in the expenditures incurred up to
May 1927. there's included an item of 458 millions for the purpose of the
reduction of paper circulation for the account of the State. and 229 xnillIons
for railways constructions, one realizes that the surplus of receipts over
ordinary expenditures was 948 millions, against 811 millions during the
coresponding period of the previous fiscal year.
The total public debt, which on June 30 1926, amounted to 91.309 millions, showing a reduction of 7,338 million lire, in this last figure is not ineluded however the Littorio Loan,for the relative bonds have not yet been
issued, but even including said loan we note a reduction of about 666 millions
from the figure of last June.
Total paper circulation issued by the State and by the Bank of Usual
amounted on May 31, to 19,0215 millions, against 19,299 minima at the end
of April, with a contraction of 271 million lire, during the month of May.
Italian Government Acquiring Exchange—Foreign
Purchases of Lira Have Increased Holdings of
Drafts on Foreign Markets.
The following is from the New York "Times" of July 3:
The Italian Government has been utilizing the proceeds of the recent
loans raised in America and England by Italian municipalities and industries to centralize the supply of foreign exchange held in the country.
The Italian press reports the Minister of Finance, Count Volpi, as having
issued instructions to the representatives of the National Institute for
Exchange to the effect that the proceeds of the said loans that are being
paid Into Italy in the appreciated currencies of the lending countries shall
be credited to the Institute, which will retain the appreciated currencies
and will furnish the municipalities or industries concerned with the corresponding lire equivalent gradually as required, from time to time, by the
Interested parties, to defray expenses for new installations, plants, &c..
of for new works carried out.
With this method pursued, it Is assumed, foreign loans will contribute
to increase the Treasury's reserve of appreciated currencies without being
harmful to the circulation, which is to be restricted as far as possible in
accordance with the policy of deflation and revaluation of the lira followed
by the Government.
$15,000,000 Credit Allowed Poland—Bankers Trust Co.
And Others Arrange Financing to Run Six
Months.
After 1 3,i years of negotiations an agreement between
between the Polish Government and a group of American
financiers for a loan of $15,000,000 was concluded on July
6, according to copyright advices from Warsaw to the New
York "Times" from which we also take the following:
Mr, Fisher signed the document as the representative of the American
interests, among which are the Bankers Trust Co., the Chase Security
Corp. and Blair & Co. of New York.
By the terms arranged the money will be made available for use by
the Bank of Poland about October, and the remainder of a contemplated
loan of 360,000.000 will be made available when the market is more favorable. The purpose of the loan is to stabilize the zloty.
During the last six months progress in the negotiations was blocked
by the refusal of General Plisucisid to grant the Americans permission to
have an observer on the board of the Bank of Poland. Only a short time
ago were the financial experts able to budge him from his adamantine
itand and to get his consent to the Americans' demands.
Statement for Bankers.
Mr. Fisher to-night said to the New York "Times" for the bankers:
Mr. Fisher and the other Americans connected with the negotiations left
Warsaw tonight.
As soon as the news was given out that the contract had been signed the
Stock Exchange took a sharp rise and the Bank of Poland recovered from
the slump which it suffered several days ago.
The "Times" also had the following to say in its July 7
issue:
Bonds to Follow Credit.
An international banking group headed by the Bankers Trust Company, which for months has been negotiating a large loan to Poland, has
arranged to advance a six months' credit of $15,000,000 to the Polish
Government as a preliminary to the long-term bond issue. The loan,
which is now expected to amount to 360,000,000, will be offered publicly
early next Fall, according to present Plans.
In addition to the credit advanced by these bankers the Bank of Poland
is arranging with central banks of several countries for credits of $20.000,000
to bridge the gap until the proceeds of this loan become available. The
JULY 9 1927.]
THE CHRONICLE
bulk of the central bank credits will be obtained in London, whose bankers
also will participate in the loan to be floated this year.
The private banking credit will not be secured by specific pledge of
revenues, but it is understood that specific revenues will be the security for
the bond issue. The price and terms of the bond issue will not be determined until shortly before the time of the public offering.
Negotiations for the Polish loan have been carried on abroad and have
been delayed several times by conflicting views as to the outside supervision
to be given to the expenditure of the proceeds. These points are understood
now to have been cleared up. The financial and economic position of
Poland has improved greatly in the last year. The budget has been balanced,the trade balance is in favor of Poland and exchange is stable.
In a reporting a fall in stocks due to reports of a deadlock
on the loan question, the "Times" Warsaw advices June 30,
said:
The Warsaw Stock Exchange was hit hard early to-day, stocks dropping
an average of 25 points, due to reports of a deadlock on the American loan,
with no prospect of action before Autumn. Bank of Poland stocks dropped
from 150 to 110 within an hour.
The Government issued a communique later in the day denying that the
New York negotiations were at a standstill and stating they would be
completed within a few days. This halted the slump in the market and the
majority of Issues regained part of their early morning losses, although
trading remained uncertain.
It is generally admitted in financial circles that the loan will not be
available to Poland for at least four months. However, it is believed that
money can be raised on the present grain crop, for which a bumper yield
is reported.
Spanish Decree Affecting Branches of American Oil
Companies,
The Washington correspondent of the New York "Journal
of Commerce" reports under date of July 7 that Spanish
branches of American oil companies are to be forced out of
business and their holdings expropriated under the terms of
a decree, just issued, establishing a monopoly on the importation, manipulation, distribution and sale of petroleum
and petroleum products, according to a cable received at the
Department of Commerce from Commercial Attache C. H.
Cunningham at Madrid. The Washington dispatch added:
The decree provides for the expropriation of present holdings of domestic
and foreign oil companies now operating in Spain. excluding foreigners
entirely from the monopoly, but forcing the sale of all necessary equipment.
the Government reserving the right of refusal to purchase adjunct and
necessary property. No mention is made of an intention to purchase
existing stocks or good will. Spanish companies are given the option of
cash reimbursement or acceptance of shares in the monopoly.
The concession for the administration of the monopoly is to be for twenty
years' duration, the object of the monopoly being to increase Government
revenue and to stimulate the Spanish industry, as well as for other purposes,
such as the building of tanker fleets, utilization of national alcohol, Sze.
The "Wall Street Journal" of last night (July 8)commenting on the decree, said:
169
"Regarding the increase of the capital of the State Bank of the U. S. S. R.
to 25 million chervontzi(250,000,000 rubles):
"With a view to adjusting the capital of the State Bank of the U. S. S. R.
in conformity with the volume of its operations, the Central Executive
Committee and the Council of People's Commissars of the U. S. is. R.
hereby decree:
"1. The capital of the State Bank of the U. S. S. R. shall be fixed at
25 million chervontzi (250.000.000 rubles).
"2. To bring the capital of the State Bank of the U. S. S. R. to the
figure indicated in Point I the State Bank is authorized to transfer for this
purpose:
"(a) 5,500,000 chervontzi (55,000,000 rubles) from the reserves of the
State Bank, and
"(b) 9,500,000 chervontzi (95,000,000 rubles) from non-budgetary funds
standing to the account of the People's Commissariat of Finance of the
U.9.5. R. with the State Bank, at the direction of the People's Commtr.ssr
of Finance of the U. S. S. R."
The statement of the State Bank, as of April 1. the last full statement
received in this country, showed deposits and current accounts of $708.488.654, an increase of 22% over April 1 of last year, surplus and undivided profits (excluding the special reserve) $47,268,364. an increase of
38%,cash, bullion, coin, precious metals and foreign currency $207,731.417,
an increase of 25%.
The State Bank was founded in Nov. 1921. with a Treasury subvention
of two billion paper rubles which were later converted into stable assets.
By May 1 1923. when the banks resources were recomputed in its own stable
note currency, the capital was fixed at 50 million rubles gold. The capital
was increased to 100 million rubles on Oct. 1 1924. The bank has about
500 branches throughout the Soviet Union, In addition to 500 branches of
the Treasury which function as agencies of the bank.
German Reparation Receipts and Payments
During May.
According to the monthly statement issued by the AgentGeneral for Reparation Payments, the receipts for May
totaled 111,466,666 gold marks, while the payments
amounted to 59,545,415 gold marks. The following is
the statement issued under date of June 15:
OFFICE OF THE AGENT GENERAL FOR REPARATION PAYMENTS.
STATEMENT OF RECEIPTS AND PAYMENTS FOR THE THIRD ANNUITY
YEAR TO MAY 31 1927.
(on cash basis, reduced to gold mark equivalents.)
Third Annuity
Month of
Year—CumulaMay
tire Total to
1927.
May 31 1927.
Gold Marks,
Gold Marks,
A. Receipts in Third Annuity Year—
I. In Completion of Second Annuity—
(a) Transport Tax
8,095,425.61
(b) Interest on Railway Reparation Bonds_
45,000,000.00
2. On Account of Third Annuity—
9,186,666.67 82.500,000.00
(a) Normal Budgetary Contribution
(b) Supplementary Budgetary Contribution
34.800,000.00 160,800.000.00
22,600,000.00 202,500,000.00
(e) Transport Tax
(d) Interest on Railway Reparation Bonds_ __ _ 45,000,000.00 360,000,000.00
125,000,000.00
(e) Interest on Industrial Debentures
3. Interest received
1,916,132.39
Total Receipts
B. Balance of Cash at Aug. 31 1926
Total Cash Available
111,486,888.87 985,811,608.00
93,626,074.81
1,079.437,682.81
Spanish Government's enactment of a decree establishing an oil monopoly C. Payments in Third Annuity YearIs being studied by American oil companies who have been marketing oil
1. Payments to or for the account of—
France
43,789,689.60 412,433,626.20
products there for some years.
24,858,510.28 203,066.471.56
British Empire
The decree is regarded by oil men as threatening to upset the whole
Italy
6,884,449.26 64,0 ,688.85
operation of marketing in oil in that country, not only because of limitations
4,237.140 81 45,923.677.18
Belgium
Serb-Croat-Slovene State
3,768,442.60 31,645,299.39
put on the character of the companies to be allowed to bid for the monopoly
6,047,757.74 68,866,311.42
United States of America
but also because of several requirements entailed in obtaining it
395,407.48 7,338,296.27
Rumania
One oil man with considerable experience in export markets made a
Japan
6,166,496.39
rough estimate that to swing the entire proposition would require upwards
319,291.74 4,907,320.13
Portugal
303,881.67 2,868,786.09
Greece
of $50,000,000. This, because the monopoly requires among other things
44,916.02
Poland
201.927.84
that a refinery be built within five years sufficient in size to manufacture
80% of Spain's refined oil needs which aggregate about 2,000,000 barrels a
90,829.487.20 847,449.499.30
Total Payments to Powers*
Year. Further expenditures of considerable size would include tank steamers
7,315,578.90 66,466,088.34
2, For Service of German External Loan 1924_ _.
3. For Expenses of—
to bring crude oil to the country which does not produce any and all the
185,628.69
Reparation Commission
1,968,603.81
necessary facilities for handling both crude oil and marketing the refined
307,755.47 2,630,507.64
Office for Reparation Payments
products.
216.048.21
Inter-Allied Rhineland High Commisslon
2,168,054.74
At present the Spanish market is one of keen competition, because of the
Military Inter-Allied Commission of Control_
1,234,084.41
86,729.14
4. Costs of Arbitral Bodies
relatively small total requirements and the numerous companies active in
5. Discount on amounts received from Deutsche
the market there.
Reichsbahn Gesellschaft in advance of due
In some quarters the plans for the monopoly are regarded as being fostered
891,830.93 5,128,076.84
date
by Soviet Influences. Certainly the supply of oil available in the Spanish
Dr.913.55
6. Exchange Differences
778.368.20
market has been increased through the movement of Russian oils there
Total Payments
99,545,415.85 927,890,010.22
through various marketing organizations.
D. Balance of Cash at May 31 1927
151,547,872.59
It is proposed that the monopoly be leased out through competitive
bidding and run for 20 years. Among the requirements which the leasing
1,079,437,682.81
company would have to meet would be to prospect for oil in Spain as well
* See Tablas I and II for analysis of payments by category of expenditure and
as to acquire producing properties in South America. The leasing company by Powers.
would have to be Spanish in both capital and organization with all execuTABLE I—TOTAL PAYMENTS TO POWERS CLASSIFIED ACCORDING TO
tives and directors and 90% of the personnel Spanish.
CATEGORY OF EXPENDITURE.
There would be no duty of any kind imposed on crude or other oils brought
Third Annuity
into the country nor on machinery or other equipment which the monopoly
Mtmth of
Year—Cumula•
might require.
May
live Total to
May 31 1927.
1927.
Gold Marks. Gold Marks,
Increase in Capital of State Bank of Soviet Union. I. Occupation Costs—
(a) Marks supplied to Armies of Occupation
2,811.492.36 28,797.358.25
The State Bank of the Soviet Union has increased its
(b) Furnishings to Armies under Arts. 8-12 of
Rhineland
3,507,259.02 25,735,329.44
Agreement
capital from 10 million to 25 million
chervontzi, equivalent
to upwards of $125,000,000, according to advices received
by the Soviet Union Information Bureau, which says that
the increase places the bank, not only in total resources but
also in capital, among the very largest in the world. The
increase was effective June 15. The Bureau in its announcement of July 6 also states:
The bank began the present financial year (Oct. 1 1926) with considerable
reserves (surplus) and undivided profits. On June 1 the surplus stood at
53 million rubles, and in addition there was a special reserve of 45 million
rubles which was apparently temporary and intended for the capital increase. Undivided profits amounted to 36 million ruble's. Of the capital
Increase 55 milieu rubles comes out of these reserves, while 95 million
rubles Is subscribed by the Federal Treasury. The increase was authorized
by a special decree of the Central Executive Committee and the Council of
People's Commissars of the Soviet Union. The decree reads BA follows:
6,318,751.38 54,532,887.69
2. Deliveries in Kind—
(a) Coal, coke and lignite
24,059,622.75 170,011,647.19
(b) Transport of coal, coke and lignite
1,860,619.40 25.644,223.84
1,176,891.90 9,073,589.99
(e) Dyestuffs and pharmaceutical products
(d) Chemical fertilizers and nitrogenous products 1,964,552.37 44,382,037.13
(e) Coal by-products
1,318,371.20 4,957,747.38
(f) Refractoryearths.
, .
•
(g) Agricultural products
1,105,313.90 6,138,420.68
(16 Timber
2,202.239.53 19,839.076.15
(1) Sugar
1,022,177.33 4.111,825.10
(1) Miscellaneous deliveries
14,903,602.39 127,497,281.76
49,820.534.10 411.768,728.76
3. Deliveries under Agreement
4. Reparation Recovery Acts
5. Miscellaneous Payments
2,009,557.74 31,748,432.93
28,542,461.25 214,375,342.73
97,491.44
966.252.12
170
THE CHRONICLE
Third Annuity
Year—CumulaMonth of
live Total to
May
May 31 1927.
1927.
Gold Marks.
Gold Marks.
6. Cash Transfers—
(a) Settlement to balances owing for deliveries
made or services rendered by the German
459,582.16
Government prior to Sept. 1 1924
2,491.29
(b) In foreign currencies
4,038,200.00 133,598,472.91.
4,040,691.29 134,058,055.07
Total Payments to Powers
90,629,487.20 847,449,499.30
TABLE II—PAYMENTS TO EACH POWER CLASSIFIED ACCORDING
TO CATEGORY OF EXPENDITURE.
Third Annuity
Year—CumulaMonth of
tics Total to
May
May 31 1927.
1927.
Gold Marks.
Gold Marks.
Payments to or for the Account of—
1. France—
1,994,000.05 19,495,803.66
(a) Marks supplied to Army of Occupation
(b) Furnishings to Army under Arta. 8-12 of
2,355,076.83 17,675,705.91
Rhineland Agreement
5,314,188.42 49,678,406.22
(c) Reparation Recovery Act
20,441,604.08 136,302,359.57
(d) Deliveries of coal, coke and lignite
633,053.82 15,297,382.99
(e) Transport of coal, coke and lignite
(0 Deliveries of dyestuffs and pharmaceutical
320,349.99 2,171,081.30
products
(g) Deliveries of chemical fertilizers and nitro1,378,943.74 34,124,246.54
genous products
875,123.06 2,372,605.90
(h) Deliveries of coal by-products
112,879.56
7,343.33
(1) Deliveries of refractory earths
1,065,437.68 5,987,210.79
(1) Deliveries of agricultural products2,143,639.71
17,768.179.86
timber
(k) Deliveries of
1,022,177.33 4,111,825.10
(I) Deliveries of sugar
6,163,751.56 49,639,744.55
(m) Miscellaneous deliveries
703,033.07
75,000.00
(n) Miscellaneous payments
(o) Cash transfers—
defor
owing
balances
of
(1) Settlement
liveries made or services rendered by
the German Government prior to
286,584.56
Sept. 1 1924
56,706,576.62
(11) In foreign currencies
[VOL. 125.
A. 0. Corbin Says Europe Is Becoming "Rationalized"
Through Our Bankers' Aid.
A new word has entered the vocabulary of European
business, a word which symbolizes ideas that may completely
revolutionize the economic life of the Old World. This
word is "rationalization," and according to Alfred 0. Corbin,
President of the First Federal Foreign Investment Trust,
it may be summed up as signifying the most efficient utilization of existing national resources, plant and equipment,
markets and transportation facilities, etc. Mr. Corbin,
in the monthly bulletin of the First Federal Foreign Investment Trust, entitled "European Rationalization and Our
Future Loans," says that American practice has shown that
the most efficient way to make a pin is not to have a smith
hammer a strip of metal into wire, cut the wire, shape the
head and sharpen the point, but to build enormous machines
capable of turning out thousands of pins per minute. This
homely illustration involves all phases of the problem of
rationalization. If pins are to be produced at the rate of
several hundred thousands a day instead of several dozen,
obviously a large market must be created. Pins thus produced will be much cheaper than smith-made pins and will
be accessible to much broader strata of the population;
they may even become an important article of export.
Thus Mr. Corbin illustrates the significance of what is now
taking place in the European industrial field. He says:
The large machines needed to produce great quantities of pins mechanically will be quite expensive, and consequently only the larger manufacturers will be able to afford such machinery. Overhead on this investment
will be high and consequently the most efficient management possible, in
sales, financing and production, will be needed to maintain or increase
profits in the face of increased competition which always accompanies
Increased efficiency and is accomplished by lower profit margins per unit of
product.
The effects of this "American plan" have been the amazing increase in the
American standard of living as against the European. European producers
have studied the situation and have acted accordingly. They have suffered
consequently inefficient, production. Prices of
24,858,510.28 203,066,471.56 from small-scale, and
certain of their commodities have been higher than they would be if modern
large scale industrial methods were applied. Competition has been carried
3,618,018.67 32,806,354.01 on by numerous small firms in any given industry rather than by a smaller
1,227,565.58 9,913,121.31
number of large and financially powerful units.
154,148.08 2,456,285.16
The great financial changes ocurring during and since the war have
428,258.53 2,332,234.47 made it more imperative than ever to do away with such economic con1,435,461.25 8,481.720.75
efficient utilization of existing factors, and to
47,725,54 ditions as prevent the most
997.15
8,005,245.61 introduce such as promote it. The problem has been attacked from a
European industrial leaders.
by
number of different angles
6,864,449.26 64,042,686.85
One phase is industrial and relates to the technique of production. Factory methods are being modernized, labor saving machinery installed.
49,874.57 time and fatigue studies, in accordance with the Taylor system of manage19,949.89
ment, carried out.
319,487.16 2,710,661.88
Another phase of the problem of rationalization is commercial. As we
902,933.61
seen, it is futile to produce in quantity unless there is a market at
have
433,719.54
prices which will yield a prof t. A modern 800-ton Bessemer stool converter.
4,346,260.71
682,259.17
while extremely efficient (if run at capacity, would actually be more wastefU 1
most old-fashioned type of hand operated furnace if there were a
585,608.63 7,513,117.08 than the
252,907.01 market for only 10 tons per day of its output. Accordingly rationalization
14,989.61
58,599.82 2,070,896.29 of markets and distribution methods has gone on apace in Europe. Con2,556,246.53 21,398,940.29 centration within the major industry of many of the European countries,
11,252.68
including metallurgical, chemical, textile and other branches, has resulted
in the creation of a small number of powerful groups. In many instances,
these great combinations within a given country have been able to create
the steel, chemical and artificial
115,483.79 international super-groups, particularly in
6,217,629.71 silk industries. Markets have been allocated and quotas fixed with the
result of increased economy and distribution. A wider use of modern sales
4,237,140.81 45,923,677.16 and advertising methods is observable, and modern methods of financing
the ultimate consumer in the interests of orderly marketing are proving
99,962.82 popular. Behind it all is the increasing movement toward lowering cus19,934.66
3,729,562.16 31,374,263.10 toms barriers between European states, thus increasing the available
171,073.47
18,945.78
markets
We believe that loans of this type will be a distinguishing feature of the
3,768,442.60 31,645,299.39
next phase of foreign financing in this market, and in our function of promoting foreign trade through foreign investment, we welcome such develop2,009,557.74 31,748,432.93
financial and the broader
4,038,200.00 37,117,878.49 ments as an indication of progress from both the
social points of view.
6,047,757.74 68,866,311.42
43,789,689.60 412,433,626.20
Total France
2. British Empire—
797,542.42 9,251,680.02
(a) Marks supplied to Army of Occupation
(b) Furnishings to Army under Arts 8-12 of
832,695.03 5,448,961.65
Rhineland Agreement
23,228,272.83 164,6961936.51
(c) Reparation Recovery Act
15,849.41
(d) Miscellaneous payments
(e) Cash transfers—
(1) Settlements of balances owing for deliveries made or services rendered by
the German Government prior to
35,022.76
Sept. 1 1924
23,618,021.21
(11) In foreign currencies
Total British Empire
3. Italy—
(a) Deliveries of coal and coke
(b) Transport of coal and coke
(c) Deliveries of dyestuffs and pharmaceutical
products
(d) Deliveries of coal by-products
(e) Miscellaneous deliveries
(n Miscellaneous payments
(g) Cash transfers in foreign currencies
Total Italy
4. Belgium—
(a) Marks supplied to Army of Occupation
(b) Furnishings to Army under Arts. 8-12 of
Rhineland Agreement
(c) Deliveries of coal, coke and lignite
(d) Transport of coal, coke and lignite
(e) Deliveries of dyestuffs and pharmaceutical
products
(f) Deliveries of chemical fertilizers and nitrogenous products
(g) Deliveries of coal by-products
00 Deliveries of timber
(I) Miscellaneous deliveries
(J) Miscellaneous payments
(k) Cash transfers—
(1) Settlement of balances owing for deliveries made or services rendered by
the German Government prior to
Sept. 1 1924
(11) In foreign currencies
Total Belgium
5. Serb-Croat-Slovene State—
(a) Deliveries of pharmaceutical products
(b) Miscellaneous deliveries
(c) Miscellaneous Payments
Total Serb-Croat-Slovene State
6. United States of America—
(a) Deliveries under agreement
(b) Cash transfers in foreign currencies
Total United States of America
7. Rumania—
(a) Miscellaneous deliveries
(b) Miscellaneous payments
(e) Cash transfers in foreign currencies
Total Rumania
395,407.48
6,381,175.87
5,098.83
950,621.57
395,407.48
7,336,896.27
8. Japan—
(a) Deliveries of chemical fertilizers and nitrogenous products
(b) Miscellaneous deliveries
(c) Cash transfers in foreign currencies
2,744,673.51
2,771,504.49
640,318.39
6,156,496.39
Total Japan
9. Portugal—
(a) Miscellaneous deliveries
(b) Cash transfers in foreign currencies
Total Portugal
10.Greece—Miscellaneous deliveries
11. Poland—
(a) Deliveries of agricultural products
(b) Miscellaneous payments
(c) Cash transfers—
(I) Settlement of balances owing for deliveries made or services rendered by
the German Government prior to
Sept. 1 1924
(11) In foreign currencies
Total Poland
Grand Total
•
319,291.74
4,581,146.62
326,173.51
319,291.74
4,907,320.13
303,881.67
2,868,786.09
39,876.22
2,548.51
151,209.87
12,219.12
2,491.29
22,491.05
16,007.80
44,916.02
201,927.84
90,629,487.20 847,449,499.30
Italy's Future Depends on Reduction in Wages of
Labor Commensurate with Rise in Price of Lire,
According to J. A. Sisto.
In a statement issued June 12 by J. A. Sisto, of J. A.
Sisto & Co., investment bankers identified with Italian and
other foreign issues, asserted "that the crux of the present
and early future situation in Italy is dependent in large
measure upon the efforts being made by Mussolini to effect
a reduction in the wages of Italian labor commensurate with
the rise in the price of lire (expressed in terms of foreign
currencies) and the consequent appreciation in the domestic purchasing power of the lira." No substantial rise in
the lira can be long maintained without a reduction in existing Italian labor costs, according to Mr. Sisto, who says:
Mussolini has stated that he does not intend to permanently stabilize the
lira around present levels, although Minister Volpi has recently stated that
it is the Government's intention to temporarily do so until next fall. Visualizing the necessity of wage reductions as a condition precedent to a
campaign for revalorization of the lira at higher prices, he has recently
promulgated the much-discussed Italian Magna Charta of labor under which
differences between labor and capital must be settled through specially
constituted courts without resort to strikes. This has been followed by
the voluntary acceptance of lower wage scales on the part of several large
JULY 9 1927.]
THE CHRONICLE
bodies of Italian workers and the Government is now sponsoring a broad
movement for the general revision downward of prevailing wages, commencing with those of Government and civil service employees. Recognizing
also that "what is good for the goose is good for the gander," the Government has made arbitrary reductions in the rates charged by the Government
owned railways and utilities.
No greater tribute could be paid to the strength of Mussolini than the
complaisant acquiescence of Italian labor to the program, the psychological
dangers of which must be obvious, even though the economic justification
Is admitted. It is my opinion that Mussolini will succeed in procuring the
co-operation of the bulk of the Italian workers, although there will be a
great many difficulties involved, particularly during the period of readjustment which will ensue before retail prices are brought into line with
the new level of values.
It is interesting to note that while the lira has risen about 70% in
value within the last year, the prices of Italian stocks, as a whole, have
remained fairly stable instead of proportionately declining, and it is only
within the past few weeks that they have shown any consistent downward
trend. The relative prosperity enjoyed by Italian industry counts in large
part for this paradoxical situation. Comparatively high wages have prevailed between June 1926 and the present time, while the 70% increase in
lira quotations has been taking place and naturally the rapid rise in the
price of lire has caused considerable disturbance in certain phases of Italian
industry and unemployment figures are larger than they were a year ago.
Nevertheless, the questions arise whether the low quotation of $3.19 in
June 1926 did not greatly undervalue the lira at that time and whether the
stability of stock prices meantime has not been justified by Italian industrial prosperity and large earnings.
171
Bids for City of Buenos Aires Bonds.
It was stated on June 28 that cable advices report that the
City of Buenos Aires opened bids on June 27 for an issue of
approximately $3,750,000 6% 333/
2-year bonds. Bids were
received from six groups as follows:
Chatham & Phenix National Bank
95.03
Shawmut Corporation of Boston and Strupp & Co
94.66
Kissel, Kinnicutt & Co
94.21
Tornquist, Blair & Co. and Chase Securities Corp
94.16
Guaranty Company of New York
94.15
First National Corp. of Boston and Harris, Forbes & Co
94.08
Tenders for Purchase of City of Cordoba (Argentine
Republic) 7% External Bonds for Retirement
Through Sinking Fund.
White, Weld & Co., as fiscal agents for the City of Cordoba
(Argentine Republic) 7% external sinking fund gold bonds of
1927, due Aug. 1 1957, announce that tenders will be received
for purchase and retirement through the sinking fund of bonds
sufficient to exhaust $23,347.50. Tenders will be delivered
at the company's office, 14 Wall Street, on or before July 11
1927, and acceptance of. tenders will be mailed July 12,
Mr. Sisto stated that if Mussolini can succeed in effecting the bonds accepted to be delivered on or before July 18.
a decrease In wages and consequent reduction in production
•
costs, commensurate with the rise in the price of the lira Republic of Chile External
Gold Bonds Ready for
and its purchasing power in terms of commodities, "we do
Delivery.
not anticipate any violent recession in the quotations of
National Bank of Commerce in New York is prepared to
Italian stocks."
deliver $27,500,000 Republic of Chile 6% external sinking
fund gold bonds due 1961 in exchange for the interim receipts
Italian Rents Reduced by Cabinet Decree.
now outstanding.
The Italian decree forcing landlords to reduce rents
throughout Italy in amounts ranging from 10 to 20% by Nitrate Price Reduction—Chilean Government Pro-.
July 1 was approved by the Cabinet council on June 14,
poses Decrease in Export Duty.
it is learned from copyright advices from Rome June 14
A London cablegram June 29, published by the New York
to the New York "Times." The same account says:
'Evening Post," said:
The avowed intention of the decree is to force the rentals of houses to
The Chilean Government has proposed a revision in nitrate export duty
follow the general downward trend of the cost of living after the revaluation to become effective in July 1928.
of the lira. Up to the present time landlords have shown the greatest
German synthetic producers are reducing the price of pure nitrogen from
disinclination to make any reductions.
90 to 85 pfennigs a kilo.
The decree provides that the rents of all small apartments consisting of
not more than five rooms shall be decreased 15%, and of all apartments of
not more than eight rooms.10%•
In addition, a maximum rental of not more than tour times the prewar rent has been applied to all apartments, houses and shops. The
rental of shops shall be decreased in amounts varying from 10 to 20%,
the largest decreases being applied to shops selling foodstuffs and household
necessities.
One of the first acts of the Facist Government on coming into power
was to abolish all housing restrictions which had been applied during
the war and which had deprived landlords of the free use oftheir property.
It was said at the time of this step that the housing restrictions had so
depressed the rental market that they had killed any incentive to build,
and, therefore, tended to perpetuate the housing problem. Residence
building immediately received an enormous impulse as soon as the restric.
tions were removed.
To-day's decree practically brings the situation back to that of five
years ago. A landlord cannot increase his tenants' rents, nor can he evict
them except in very special circumstances, because of another decree which
has estopped all evictions.
The Government claims justification for to-day's mcasure because
landlords who most profited by the removal of the housing restrictions
and raised their rents to exorbitant levels, taking advantage of the shortage of houses, are now most unwilling to reduce their rents, despite the
greatly increased gold value of the lira. These landlords will be hardest
hit by the decree.
Columbia Bonds Awarded—$25,000,000 Development
Issue to be Offered in About a Month.
The following is from the New York "Evening Post" of
July 7:
A $25,000,000 Issue of Republic of Columbia 25-year 6% bonds has
been awarded to Hallgarten & Co., who in association with Kissel', Kinnicutt & Co. headed a banking syndicate which advanceda$5,000,000shortterm loan to the Republic last March.
Part of the proceeds of the new offering will be devoted to retiring the
$5,000,000 notes which will mature on Aug. 1, and the remainder will be
used for the development of the country's railroad facilities. According
to reports the new issue will be priced around 95 and will not be offered
publicly for about a month.
James R. Sheffield Resigns as Ambassador to Mexico.
Rapid City (So. Dak.) Associated Press advices yesterday
(July 8) said):
James R. Sheffield to-day gave his resignation as Ambassador to Mexico
to President Coolidge.
The resignation is to take effect at the will of the President, who has
not indicated his intentions. Mr. Sheffield, however, has indefinite
plans for returning to his post and upon leaving here expects to go to Europe
for six weeks.
Fiat Auto Workers in Italy Accept Wage Cut.
Turin advices in the "Wall Street Journal" June 3 stated: Receiver Named for Bankers' Joint Stock
Land Bank
Approximately 50.000 Fiat Auto Works employees belonging to the Fasof Milwaukee.
cist labor syndicates have accepted a 10% wage reduction in accordance
with the efforts of the government to re-arrange wages and living costs
Announcement of the appointment of a receiver for the
in proportion to the appreciation of the lira.
Bankers' Joint Stock Land Bank of Milwaukee was made at
Syndicate officials issued a communique demanding that landlords reduce
Washington on July 1 by Eugene Meyer Jr., Commissioner
rents.
A previous item regarding wage cuts in Italy appeared of the Federal Farm Loan Board. The appointment of the
receiver followed the failure of the bank to pay interest due
in our issue of May 14, page 2836.
July 1 on its outstanding bond issues. Mr. Meyer also
makes known in his statement that efforts, which were unItalian Cabinet Council Approves Suggestion of successful, had been made within the past few months to
Premier Mussolini for Tax Reduction.
work out a plan of reorganization. Mr. Meyer's statement,
Rome advices June 15 to the New York "Times" (copy- issued July 1, follows:
Upon receipt of notice of the failure of the Bankers' Joint Stock Land
right) state:
Bank of Milwaukee, Wis.,to pay interest due July 1 on part of its outstandThe Cabinet Council to-day decided that a "notable reduction of taxa- ing bond
issues, the Federal Farm Loan Board, pursuant to authority con-
tion" shall be made. The suggestion which the Council approved unanimously was made by Premier Mussolini. The Minister of Finance, Count
Volpi, has been ordered to devise means whereby this object can be reached
and to report to one of the next Cabinet Councils.
It is the boast of the Fascist Government that Italy alone of all the nations
engaged in the World War has reduced its taxation in the post-war period.
Huge budget deficits have been abolished without raising the general level
of taxation. A few taxes have been reduced, while others, such as inheritance taxes, have been abolished completely.
The State revenue has grown continually in the last five years, placing
the budget on a solid foundation and leaving every year considerable
surplus. This condition has now encouraged the Government to apply
what avowedly has been its policy of reducing taxes as soon as conditions
permitted.
tained in Section 29 of the Federal Farm Loan Act, to-day appointed
Howard Greene of Milwaukee receiver of the bank, and has instructed him
to take immediate charge of its affairs for the purpose of conserving its
assets and protecting the interests of all parties concerned.
The appointment of a receiver is the culmination of a situation that has
been developing in the bank's affairs over a considerable period of time.
During the early part of the present year the directors of the bank appointed an advisory committee consisting of leading business men and
bankers to advise with the bank's management in connection with its
operations. The committee has been studying the affairs of the bank for
several months in an effort to work out a plan of reorganization. Its efforts in this connection were not successful, and the action of the directors
of the bank in ordering the non-payment of the interest due to-day Was in
accord with the recommendation of this committee.
172
THE CHRONICLE
Under date of June 25 1927 the General Manager of the bank addressed
the following circular letter to its stockholders:
"In our letter to you of April 16 we stated that the advisory, committee
was considering a plan for voluntary liquidation of the bank and that when
completed the plan would be submitted for the approval of the Farm Loan
Board and the stockholders.
"The advisory committee has made every effort to establish a workable
plan for liquidation, but has been unable to interest sufficient capital to
warrant adoption of such a plan. Accordingly the committee is unable to
submit any plan of reorganization to the Farm Loan Board and the stockholders.
"Under the circumstances the committee Is of the opinion that an orderly
liquidation of the bank under the supervision of the Perm Loan Board is
the most desirable procedure and has so advised the board of directors of
the bank."
The Milwaukee "Sentinel" of July 2 had the following to
say in part:
[Vol,. 125.
which Mr. Compton would act without going into broader scopes which
might be undertaken if a court receivership were established.
Loan Board Desires a Hand.
Those who have followed the proceedings recalled that Judge Reeves
had announced that if he took jurisdiction and named a permanent receiver he would be unwilling to permit any intervention by the Federal
Farm Loan Board. It was believed the receiver and the Farm Loan
Board group did not desire to cut off all connection with the land bank case.
Thomas S. McPheeters of St. Louis, who with Herman M. Langworthy
represents Mr. Compton and the present land bank receivership, said
after court that the "present view of the receiver was that the land bank
bank should be reorganized and sold."
After Judge Reeves had cleared away the temporary receivership instituted by the land bank receiver there remained only several bills filed by
Edwin A. Krauthoff, a lawyer seeking receivership for the land bank's
affairs. When Judge Reeves dismissed the Krauthoff bills on motion by
Mr. McPheeters and Mr. Langworthy, Mr. Krauthoff made extensive
argument in opoosition.
The receivership resulted from the failure of the bank to pay the interest
coupons due July 1 on some of the $15,771,600 of bonds outstanding.
The Milwaukee bank has suffered from adverse agrciultural conditions
The appointment of Mr. Compton as receiver was noted
and the consequent shrinkage of land values which has necessitated foreclosing on many of the farms against which it held mortgages, thus tying in our issue of May 7, page 2679, the action following the
estate.
real
in
capital
its
of
part
up a substantial
Walter Cravens, President of
Early this year directors of the bank appointed an advisory committee indictments returned against
consisting of James H. Daggett, J. B. Angle, J. A. Auchter, J. F. Barry, the Bank and other officers, mentioned in these clumns
George L. Waetjen and R. W. Higgins to advise the bank's management April 30, page 2679. Regarding the date set for the trial,
in connection with its operations and Werner Markwitz was named general
Kansas City advices June 15 to the New York "Journal of
manager to manage the business under direction of the committee.
According to Mr. Markwitz it will be impossible to estimate what the Commerce" stated:
conbe
will
assets
liquidating
ultimate outcome will be as results from
Walter Cravens, President of the Kansas City Joint Stock Land Bank,
tingent on agricultural conditions.
to trial Sept. 5 on Federal indictments alleging irregularities in the
conference will go
a
following
upon
determined
be
will
liquidation
of
A policy
of the bank.
xet no conduct
between Mai. Greene and farm loan board officials next week. As
who will be tried the same time are Ralph W. Street, Vice-PresiOthers
precedent to govern liquidations of this sort has been established by the dent; Alice B. Todd, Secretary, and R. Harold Cravens, Richard P.
government.
Russel Cravens, directors of the bank.
few Craven.s and C.
The Milwaukee bank is the second one to go into receivership. A
The trial will be at a special session of the Federal Court. Nugent
similar
weeks ago the Kansas City Joint Stock Land bank was placed in a
attorney general, will prosecute the cases. Further
special
assistant
Dodds,
position.
Grand Jury investigation of the bank will begin July 19, Dodds announced
estate
real
showed
31)
May
of
(as
The last balance sheet of the bank
to-day.
owned as $1,178,263 and delinquent installments totaling $138,980.
Twenty-seven witnesses, including officials of seven banks, were subOperations in the first five months of 1927 resulted in a deficit of $27,206. poenaed to appear before the Grand Jury. Bank officials were served with
to
subject
Stock of the bank is currently quoted 5 bid and 10 asked. It is
subpoenaes duces tecum, requiring them to present all records of dealings
a 100% assessment.
in which the Cravens, Miss Todd, or Street participated.
An item regarding the inquiry into the Bank's affairs by
the committee appeared in our issue of April 30, page 2533. New York Stock Exchange Amends Rules Governing
The appointment of a receiver for the Kansas City Joint
Use of Proxies—Change Follows Suggestion of
Stock Land Bank was noted in our issue of May 7, page 2679.
Samuel Untermyer of State Transit Commission
President Simmons of the New York Stock Exchange
Guy Huston, of Chicago Joint Stock Land Bank, made known on July 7 the adoption by the Governing ComPleads Not Guilty of Alleged Charges in Connection
mittee of a resolution whereby no member or Stock Exchange
with Affairs of Southern Minnesota Joint
firm "shall sign or give a proxy to vote on the stock of a
Stock Land Bank.
corporation or association registered in the name of such
Under date of June 14, the Chicago "Tribune" reported member or firm except to the actual owner thereof upon
the following Associated Press advices from Mankato, demand therefor, unless such stock is in the possession of
Minn.:
such member or firm or unless such member or firm or a
Guy Huston, of New York and Chicago. head of a chain of joint stock
thereof is the owner of or has an interest in such
customer
to-day
here
when
arraigned
guilty
not
pleaded
others
land banks, and five
Southern
the
of
with
time such proxy is given." The changes grow
affairs
connection
the
in
fraud
at
stock
and
conspiracy
of
charges
on
Minnesota Joint Stock Land Bank of Redwood Falls. Trial was set for out of the suggestions made to President Simmons by Samuel
Sept. 6.
Untermyer, special counsel to the State Transit Commission,
Six Plead Not Guilty.
letter embodying Mr. Untermyer's proposals having been
John
his
It.
Huston:
Huston,
the
Guy
Those who pleaded not guilty are:
brother; William H. Gold, formerly President of the Redwood Falls Bank; published in our issue of Junr 4, page 3292. The matter was
Donald and Glean Gold, sons of W. H. Gold, and William G. M. Smith, again brought to Mr. Simmon's attention by Mr. Unthrall former Vice-Presidents. Bonds set previously were continued.
on June 29,
Indictments charging conspiracy and fraud totaling nearly $1,000.000 myer at a hearing before the Transit Commission
were returned against the six men by a Federal Grand Jury in St. Paul last when at the instance of Mr. Untermyer President Simmons
January, Guy Huston, President of the National Association of Joint Stock indicated that the question of reforms in the use of proxies
Land Bankers, representing fifty-seven banks, was named principal in the
would be given consideration. Further reference to the
two indictments, which contained twenty-six counts.
hearing and Mr. Simmons's testimony is made in another
Changes in Indictments.
Misapplication of funds, falsification of bank records, using the mails to item of this issue. The following is President Simmons's
defraud and conspiracy to comit these acts are charged in the indictments. statement of July 7, aecnouncing the action taken by the
The bank, whose affairs resulted in the indictments, was formerly located
Exchange:
at Redwood Falls, but now is in Minneapolis. It was reorganized more
than a year ago, and its present status is not affected by the action.
Indicements returned against Guy Huston and others on
June 7 by the Federal Grand Jury at Toledo, were referred
to in these columns June 11, page 3441.
Court Receivership of Kansas City Joint Stock Land
Bank Dismissed on Motion of W. R. Compton—
Mr. Compton Continues as Receiver Through
Appointment by Federal Farm Loan Board.
There was no Kansas City Joint Stock Land Bank receivership existing in the Federal court on June 11 after Judge
Albert L. Reeves erased pending receivership cases from his
docket, says the Kansas City 'Star," which went on to say:
The land bank reverted to the receivership established by the Federal
Farm Loan Board under the action of the court and the case was again
in the status of May 4. when the court first was asked to take jurisdiction.
Compton Court Receiver Also.
Dismissal of the court receivership was made on motion by counsel for
William R. Compton, receiver for the land bank through appointment
by the Federal Farm Loan Board, who also was made temporary receiver
under the courts' action ten days ago when a temporary receivership was
established.
There was an element of surprise in the move to dismiss the court receivership proceedings since the Farm Loan Board group had sought a
court receivership after it was believed it could not proceed with only
the Farm Loan Board administering the affairs of the land bank.
However, counsel for Mr. Compton indicated the handling of the land
bank affairs would not be along lines of a court receivership as had been
foreseen at first. It was now planned to carry on the readjustment of
the bank's business within the scope of the Federal Farm Loan Act under
It appeared from the published reports of the testimony given at the
hearings before the Transit Commission in the proceeding now pendim:
before that Commission that certain brokerage houses had given pros..,
to vote the stock of the companies concerned in that proceeding which was
not in their possession and in which neither they nor their customers had
an interest.
The Stock Exchange thereupon inquired into the matter to ascertain to
what extent such practice existed among Stock Exchange firms. As a
result of this Inquiry, it appeared that while the giving of proxies by Stock
Exchange firms to vote stock not in their possession and in which they had
no interest was not a general practice, nevertheless it was done to a considerable extent.
While the Stock Corporation Law of the State of New York provides that
the stockholder of record of a stock corporation is entitled to vote the stock
standing in his name on the books of the corporation in the absence of a
request by the actual owner of such stock for a proxy to vote thereon, the
Stock Exchange deems it desirable that Stock Exchange firms should not
vote stock registered in their names but which is not in their possession
and in which neither they nor their customers have na interest; and the
Governing Committee of the Stock Exchange has, therefore, adopted
the following resolution:
No member of the Exchange or a firm registered thereon shall sign or
give a proxy to vote on the stock of a corporation or association registered
In the name of such member or firm, except to the actual owner thereof
upon demand therefor, unless such stock is in the possession ofsuch member
or firm or unless such member or firm a customer thereof is the owner of
proxy is given.
or has an interest in such stock at the time such
In all cases in which a proxy shall be given by a member of the Exchange
In the name of such
registered
stock
on
or a firm registered thereon to vote
member or firm, such proxy shall state the actual number of shares of stock
the
proxy
which
is
given.
for
The Stock Exchange in this connection also considered the question of
requiring Stock Exchange firms, on purchasing stocks for customers, to
have such stocks forthwith upon the receipt thereof registered in the names
of such purchasing Stock Exchange firms.
On account of the rapid change in ownership of a large volume of the
stocks purchased and sold daily on the Stock Exchange, such a require-
JULY 9 1927.] .
THE CHRONICLE
meet would necessitate daily transfers on the books of the corporations
concerned of such a volume of stocks as to materially interfere with the
prompt delivery of stocks and their use as collateral for loans for customers accounts. Moreover the books of many corporations are closed for
transfers during considerable periods of time. The Stock Exchange deems
that such a requirement would so seriously interfere with the carrying out
of the daily transactions on the •Exchange involving the purchase and sale
of securities as to be inadvisable and undesirable.
173
His personal opinion was that it was an inadvisable practice to give
proxies for stock which had actually passed out of the possession of the
brokerage firm, but which was still registered in its name. Mr. Simmons
said he had made an investigation of the matter and that there was no
uniform custom in the Street in the matter of giving proxies for stock not
held but registered in the name of brokerage houses. Where there was a
contested election, however, brokers were very particular about giving
proxies for stock only in their possession.
Mr. Untermyer pointed out that 90% of the voting trust certificates
of the Interborough Rapid Transit Co. were registered in Street names.
The giving of proxies by some of the brokerage houses in whose name the
Interborough is registered was a grave abuse, in Mr. Untermyer's opinion.
Mr. Simmons admitted that the parctice in particulat cases might amount
to an abuse. Mr. Untermyer sggested that the correction of the situation
would involve requiring stock held by brokerage houses to be registered
in their names. Mr. Simmons said he could see this would aid stockholders
who desire to get in touch with other stockholders in a contested election.
He said if the situation is as bad as Mr. Untermyer painted it, it was his
opinion that the Stock Exchange would take action in the matter. He
said it would require a few weeks for the various bodies of the commiaslon
to reach a decision in the matter.
Brokers' Loans as Reported to New York Stock Exchange June 30, 33,568,966,843—Record Figures.
The figures of outstanding brokers' loans reported to the
New York Stock Exchange, which have been steadily
climbing since the Jan. 31 statement, reached the highest
total on record on June 30, the combined total of time and
demand loans on that date reaching $3,568,966,843. Prior
to this new record (made known by the Stock Exchange
July 7) the highestfigures reported to the Stock Exchange had
In its account of Mr. Simmons' testimony the New York
been those for Feb. 27 1926, when the loans, aggregated
$3,535,590,321. Of the June 30 figures $2,756,968,593 "Times" stated:
Mr. Simmons, who was accompanied by John G. Milburn as counsel,
represent demand loans and 11,998,250 time loans. As finally with every indication of rel ctance
expressed agreement that the
compared with the May 31 figures the total at the end of conditions complained of by Mr. Untermyer constituted a bad practice
June represents an increase of $111,097,814, the • out- and said he would recommend the adoption of the rules Mr. Untermyer
desired.
standing loans at the close of May having been $3,457,869,Mr. Simmons said he was not conversant with the method of giving
029. Regarding the latest figures the New York "Times" proxies by brokerage houses, but said that be and his Law Committee
had been investigating the matter since Mr. Untermyer had called It to
of Yesterday (July 8), said:
his attention.
Wall Street was unprepared for the announcement of an increase of $111..
000,000 in brokers' loans as of June 30, made by the Stock Exchange yesterday. This establishes a new high record since January 1926, when the
Exchange started publishing its own figures. and represents an expansion
from the low point of this year (on Jan. 31) of some $430,000,000. It
seemed to be the generally accepted belief in the financial district up to a
few minutes before three o'clock yesterday that the expansion would be
moderate, if any, and in many quarters it was believed that a reduction
would be shown—not only because of the considerable amount of liquidation which took place in June. as indicated by lower stock prices, but also
because several syndicates which have "stale" stocks and bonds on their
hands were broken in the latter part of the month and these securities were
permitted to seek their own level. The market had no opportunity to give
any reflection of these figures, because they were not issued until after the
close of trading.
The following is the statement issued July 7 by the stock
exchange:
Total net loans by New York Stock Exchange members on collateral,
contracted for and carried in New York as of the close of business June 30
1927, aggregated $3,568,966,813.
The detailed tabulation follows:
Demand Loans. Time Loans.
1. Net borrowings on collateral from New York
banks or trust companies
$2,316,440,003 $748,534,750
2. Net borrowings on collateral from private bankers,
brokers, foreign bank agencies or others in the City
of New York
440,528,590
63,463,500
82,756,968,593 $811,998,250
C9mblned total of time and demand loans
' $3.568,966,843
The scope of the above compilation is exactly the same as in the loan
report issued by the Exchange a month ago.
The monthly figures of the Stock Exchange since the issuance of the monthly figures by it, beginning in January of a
year ago, follow:
1926—
Jan. 30.
Feb. 27
Mar. of
April 80
May 28
June 30
July 81
Aug. 81
Sept.30
Oct. 31
Nov.80
Dee. 111
1927—
Jae. 31
Feb. 28
Mar.31
Apr. 30
May 81
June 30
Demand Loans. ' Time Loans.
Total Loans,
52,516,960.599
$996.213,555 $3,513,174.154
2,494,846,264 1,040,744.057 8,535,590,321
2,033.483.760
966.612,407 8,000,096,167
1,969,860.852
865,848.657 2,835.718,509
1.987,316,403
780.084.111
2,767,400,514
2.225,453,833
700,844,512 2,926,298.345
2,282,976.720
714,782,807 2,996.759,527
2,363,881,382
778,286.686 3,142,148,068
2,419.206.724
799,730,288 3,218,937.01e
2,289,430,450
821,746,475 3.111.176.925
2,329,538.550
799.625,125 3,129.161,675
2,641.681,885
751,178,370 3.292,869.266
2,328,340,338
2,475,498,129
2,504,687,674
2,541,305,897
2.673,993.079
2,756,968,593
810,448,000
780,961,250
785,093,500
799,903,950
783,875,950
811,998.250
3.138.786,338
3,256,459.379
3,289,781.174
3,341.209,847
3,457,869.029
3,568,966.843
E. H. H. Simmons of New York Stock Exchange Before
Transit Commission Testifies on Use of Proxies.
At the hearing in this city on June 29 before the State
Transit Commission which is engaged in working out plans
for the unification of the city's transit lines, E. H. H.
Simmons, President of the New York Stock Exchange was
called upon to testify on the use of proxies. The matter is
one which had previously been the subject of a letter which
Samuel Untermeyer, Special Counsel to the Commission
had addressed to Mr. Simmons, this letter having been
given in our issue of June 4, page 3292. In another item
we indicate the action which was taken by the Exchange
in amending its regulations governing the use of proxies.
Referring to Mr. Simmons's presence at the transit hearing,
the "Wall Street Journal" stated that he had been summoned to explain the custom of the Street in regard to
brokerage firms voting stock registered in their name
whether owned by them or not. He said the practice
varied and there was no rule of the Exchange covering the
point. The paper quoted went on to say:
Pressed by Mr. Untermyer, counsel for the Commission, he said that the
matter had been placed before the Law Committee of the Exchange.
"As a stock broker and a member of the Exchange, don't you realize
the impropriety of permitting this thing to continue?"Mr. Untermyer asked.
"I ask to be excused from answering," Mr. Simmons said. "I don't
want to enter into a discussion. I am here as President of the Exchange."
"You realize, don't you, how such a custom of allowing proxies to be
voted by people who have no interest in the stock and no possession of
the stock has the effect of drowning the voices of the real stockholders
at an election?" Mr. Untermyer inquired.
"I think it Is not a wise practice and one that it is well to discontinue,"
Mr. Simmons said.
The examination continued:
Q.—If the broker who holds some stock in the company, but not the
amount of stock appearing in his name, were required on the face of the
proxy to designate the amount of stock that he holds on which he votes,
that would help that situation, would it not? .A.—I think it would:
yes, sir.
Q.—If he were prevented by regulation of the Exchange from giving
a proxy with respect to stock that he no longer holds, and the possession
of which he has parted with, that would further assist the situation, would
it not? A.—That is practically the same thing, is it not?
Q.—No,it is not. That would further assist it, would it not? A.—Yes
Doubtful on Registration.
Q.—If the members of the Stock Exchange were required, when they
come into the possession of stock that is in the name of other street houses,
to have the stock registered in their name, that would supply a simple
and easy contact between the stockholders, wouldn't it? A.—I suppose
it would yes.
Q.—Do you see any objection to these reforms? A.—Well, I think
some of them are debatable.
Q.—Isn't it one of your functions to insist in the integrity of elections
of directors whose securities are listed on your exchange? A.—Yes.
Q.—Don't you think that would promote the integrity and the fairness
of election, to have the stock registered in the name of the brokerage
houses that hold it, rather than in the name of somebody who had parted
with it? A.—Yes.
Q.—That being so, have you any question that the Stock Exchange,
which exercises a good many rights over its members, would have the
right to make such exactions in the interest of honest election? A.—I
have no question of that.
Q.—That being so, will you recommend those reforms?
Mr. Millburn interrupted with the objection that the question was not
a proper one. Mr. Simmons said he would have to take up the matter of
recommendations with his law committee. He finally said that he was
willing to say that he would recommend the adoption of Mr. Untermyer's
first two suggestions but was unwilling to say that he would recommend
the adoption of a rule requiring every member of the Exchange to register
in his name stock received from other brokers.
"But you have told us that the third suggestion would permit honest
elections," Mr. Untermyer continued. "Why should not you recommend
that?"
"The only thing I am questioning Is practicability." Mr. Simmons
replied. "It is not ethics; it is the practicability."
"Dont' you see that it is essential in order to give the stockholders
their rights that they should have the opportunity to communicate with
the associate stockholders?"
"I can see no objection to it, but I would have to give it a closer study
before I would choose to say that I would recommend it."
Mr. Untermyer asked how long it would take to get the Exchange to
take action, and Mr. Simmons replied that it would be a short time, a
week or ten days.
"If it can be done within two weeks it will be satisfactory" Mr. Untermyer
said.
Thinks Proxy Data Fatal.
Mr. Untermyer explained that the commission believed it necessary to
know who owned the stock. In reply to a question by Mr. Milburn he
said:
"If the Exchange refuses to act, why then we will have to discuss that
situation, but if the Exchange acts favorably on these propositions, then
we want to know about when it will take place. There are elections
coming along in both of these companies at an early date, and it may be
advisable to get into communication with the stockholders."
Mr. Simmons said that the practice of brokerage houses issuing proxies
had existed for many years and that he must make a close study of the
different points before making any recommendation to the Exchange.
"I have been in conference with the law committee several times on this
subject. I have been in conference with our attorneys on it. We have
come to a certain point where we are pretty nearly ready to make recommendations. When we come to a conclusion we will take the matter
before our governing board, which is the final body for decision in these
matters. When the governing board has passed on them, such recommendations as they may adopt will be made public."
"As a citizen, since you think the city is entitled to know who its associate owners are, won't you exert yourself to bring that about by inauguratini
the reforms that have been suggested?" Mr. Untermyer asked.
"I will exert myself to bring them about, so far as is within my power,"
Mr. Simmons replied.
174
THE CHRONICLE
Removal of Pegs in Bond Market Gives Buyers
Confidence—Several Issues Break as Bankers
Take Support from Recent Offerings.
Writing in the New York "Journal of Commerce" July 2
Jules I. Bogen says:
The removal of a number of pegs placed under recent bond offerings
resulted in clearing up last week a considerable part of the congestion which
has characterized the bond market of the last six weeks, a survey of the
situation among several leading bond houses revealed yesterday.
In most cases the removal of the peg, generally on the occasion of the
dissolution of the offering syndicate, resulted in a drop of several points
In the issue. This drop merely brought the new issues in line with the yield
now obtainable on bonds of the same merit already outstanding. In
this way the artificial character of the market for new issues has been
eliminated, with the result that the confidence of the buying public has been
restored and the recent offerings are again moving in normal fashion.
July Demand.
The July reinvestment demand will make its influence felt later than
usual this year, in the opinion of several partners of bond houses. The
reason advanced is that the record volume of new offerings in May,coupled
with widespread suspicion toward the structure of prices that had been
built up after a persistent advance in quotations, caused dealers and
Investors to hold their orders off the market until after July 1, instead
of anticipating by ordering during the last two weeks of June, as is often
the case.
J. P. Morgan & Co. led the way last Monday when the peg was abruptly
removed from the $50,000,000 issue of refunding and improvement 5s
of 1967. Brought out at 94% and pegged at that price for more than
six weeks, these bonds dropped to 92 overnight and sold as low as 91%.
Yesterday they were fairly active at 92, which is apparently the current
free market valuation of this issue.
Another large issue which was allowed to take care of itself on the same
day was the $25,000,000 of Remington-Rand 5%s. Brought out at
100, they were quickly oversubscribed and sold up to 101% in an enthusiastic wave of buying. However, as the date of payment approached,
and buyers who hoped that this issue would duplicate the spectacular
performance of the old Rand Kardex 5%s had to arrange for taking them
up, the quotation slumped back to par. Here the bonds were supported
for a short while, but on Monday the peg was removed and the bonds
dropped a point to 99. They have since slumped to 98, where they sold
yesterday afternoon, off 2 points from the offering price and 3% from
the high reached a few days later.
Even earlier, the Mortgage Bank of Jugoslavia Is had been allowed
to drop below the offering price of 92, and fell 10 points to 82 before the
decline was halted. These bonds, regarded as a more speculative foreign
Issue, have since recovered to 86, 6 points below the issue price. Shell
Union 55 were supported at the opening on Monday, and $79,000 of the
bonds were reported sold at the pegged price of 99% before the market
was allowed to take its freedom. The next sale was at 97, and the bonds
have since sold as low as 9655•
On Thursday the peg was removed from the Cuban Northern Ry. 5%s
and they dropped abruptly from 98%, the issue price, to a low of 95%•
They have since recovered more than a point of this loss. An additional
peg removed yesterday with the dissolution of the syndicate was that under
Allis-Chalmers 5s, given a free market for the first time. They dropped
2% to 96% before support appeared.
Goodyear Mystery.
A peculiar case, regarded somewhat as a mystery on Wall Street, is the
$60,000.000 issue of first mortgage and collateral trust 5% bonds of the
Goodyear Tire & Rubber Co. These bonds were brought out at 97 and
have sold at that price almost consistently since issuance on May 20, with
the exception ofa few that have changed hands at a small fractional advance.
As the bond market declined these bonds were offered in increasing
number. On Thursday, after $412,000 of the bonds had been reported
taken at 97, large transactions occurred at 97% and 97%. Yesterday
transactions were reported to have totaled more than $1,000,000, with the
great majority of bonds taken at 97.
The bankers indicate that the offering syndicate has been dissolved.
Nevertheless there are prsistent reports in bond houses that the bonds
have not been well distributed. They apparently have received market
support of the strongest kind.
Several Still Pegged.
Bond houses report that there has been real interest in bonds on the part
of investors since last Tuesday, after it was see that the big issuing houses
were following a policy of removing the pegs to allow the market to take
on a more normal character. Retailing organizations reported a big jump
in sales on Wednesday and Thursday.
Several issues continue to benefit from pegs, the market action of these
bonds indicate. These issues include International Telephone & Telegraph
4%s, City of Budapest 6s and Phillips Petroleum 5%B.
Shorts Pinched in Goodyear 5% Stmds—Sellers for
7-Day Delivery Forced to Pay 97—Sold Bonds
on Stock Exchange at Same Price—
Issue for Delivery Next Week
Sells at 93.
Noting that "a situation without precedent in the bond
market had arisen through the efforts of shorts in Goodyear
Tire & Rubber 5s to obtain bonds with which to cover
seven-day contracts entered into a week ago when the bonds
were still supported by the offering syndicate at 97," the
New York "Sun" of July 7 went on to say:
To-day a price of 97 was paid for the bonds on a cash and immediate
delivery basis because certain traders were under compulsion to make
delivery on bonds sold short a week ago. At the same time bonds could
be bought for delivery seven days hence at 93 and bonds for delivery in the
regular way, namely, before 2.15 to-morrow afternoon, were selling a
quarter point under the price of cash transactions.
Goodyear 5s came under sharp attack a little over a week ago while
the syndicate was still supporting the issue at 97. July 16 had been set
as the expiration date for the syndicate agreement but so many other
syndicates had unpegged their protected issues that traders took a chance
on earlier dissolution and sold the bonds short at the pegged price, taking
advantage of the Stock Exchange rule which permits the seller, if he so
stipulates when making the trade, to deliver seven days after the sale.
The only change they took was that the syndicate might not dissolve.
[VOL. 125.
in which event they would be compelled to go into the market and pay
the pegged price of 97 to complete the transaction.
Syndicate Dissolves.
The syndicate in this case dissolved at the close of business last Friday
and on Saturday the bonds broke to 92%. All this week there have been
three markets in the bonds. They are bought for cash, for seven-day
delivery and for regular delivery. Shorts who covered on Tuesday and
Wednesday made a point or two profit, but gradually the price for regular
delivery has been creeping up as the buying has become more and more
urgent. At the same time "delayed delivery" bonds have been holding
steadily, so that the spread has been widening.
Traders who sold last Thursday for seven-day delivery had the choice
to-day of buying for cash and paying the high price for bonds or allowing
bonds to be bought in "under the rule," as the Stock Exchange requires.
Persons who went short last Friday were under the urge to. buy to-day,
as this is their last opportunity to get delivery in the regular way in time
to make delivery to-morrow. In their efforts to get bonds to-day they
carried the price up close to the cash price, but in doing so they avoided
the prospect of getting into a stampede with other shorts buying bonds for
cash tomorrow.
Speculate on Saturday.
What the situation will be on Saturday no one can foretell accurately, but
It is reasoned that with the emergency demand for regular delivery bonds
for covering purposes gone the spread will rapidly diminish until only the
one market will be quoted.
The way was opened for the creation of this situation over two years ago
when the Stock Exchange ruled that delivery of bonds could be deferred for
seven days if the seller so stipulated. The purpose was to make to easy far
the interior and the West to deliver bonds without penalty.
Some investment houses protested against the rule on the ground that it
would leave bond syndicates open to attack such as the one that actually
was made on Goodyear 5s. Supporters of the rule held, on the other hand,
that if short selling was good for the stock market it would also act as a
stabilizing influence in the bond market. Persons who looked at the
"regular delivery" price of Goodyear 5s to-day claimed that this situation
vindicated the exponents of the rule.
The Curb Exchange has a rule permitting delivery of bonds in seven days
so as to make it easy for out of town sellers to deliver. The seller who seeks
delayed delivery, however, must write a letter stting that his bonds are out
of town.
Finding Business for Capital the Problem of To-Day
According to C. L. Bradley, of Union
Trust Co. of Cleveland.
According to C. L. Bradley, Vice-President and Executive
Manager of the Union Trust Co. of Cleveland, one of our
"major problems is how to employ our large supply of capital to the best advantage. Discussing the question, Mr.
Bradley, in an article in "Finance & Industry," of Cleveland,
said in part:
Now, the important factor to be borne in mind in that connection is that
the United States is not in need of greater productive capacity than it has
at the present time. In fact, we have right now an excess of plant capacity
and in many industries the liquidation of some of this excess capacity
might actually result in a snore healthy situation for all concerned. This is
well illustrated at the present time in two particular fields—coal and oil.
It is no exaggeration to say that one-half of the coal producers could adequately supply the country's needs. The same situation obtains to a large
extent among the textiles, where its results have been keenly felt for a
number of years and would probably have continued to cut down profits
this year had it not been for the fall in the price of cotton which made it
possible to reduce textile prices and thereby stimulate a larger market.
The problem in most American business to-day is not one of capitalization,
so much as it is one of readjustment and realignment to conform to new
methods of distribution, changing tastes in the buying habits of the public,
and competition between whole industries as well as between firms engaged
in the same or similar industries. I wish to emphasize this point because
an analysis of the situation in light of the above facts makes it seem apparent that the recent eager and widespread buying of industrial securities
would appear warranted not in the light of prospective industrial earnings,
but rather as an outlet for, and an employment of capital. That holders
of capital should and must seek investments, is sound and inevitable—but
that many should turn to speculation instead, is, under the circumstances,
unfortunate. In one way, therefore, it seems rather hard to justify the
extension of brokers' loans to over $3,000,000,000, a figure in excess of
any previous high point. How much of this total represents speculation, it
is difficult to estimate. It is to be hoped, however, that we may not be
indulging in that type of speculation which results from the mere existence of the capital with which to speculate.
One of the strongest and most encouraging factors is our excellent volume of foreign trade. Merchandise exports in May totaled $394,000,040 as
compared with $356,699,000 in the same month of 1926. For the first five
months of this year merchandise exports amounted to $2,010,240,000,
whereas during the same period last year they were only $1,868,820,000.
It is true that during the ensue period imports amounted to some $200,000,000 less than during the first five months of last year—but the result
was that this year the five months' period showed a favorable trade balance of $241,843,000, as compared to an unfavorable trade balance of $96,968,000 in 1928. The extent to which the export market has been of
assistance in providing an outlet for a product, the demand for which has
fallen off in our own country, is illustrated in the case of automobiles and
trucks. In the first quarter of 1926 the percentage of passenger car production exports amounted to 6.7%—in 1927 this had risen to 9.1%. The
corresponding figures in the case of trucks are 16% and 21.1%, respectively. It is possible that the increase in our merchandise exports may
parallel to a certain extent the increased degree with which we are investing American capital in foreign industrial enterprises. This growing tendency toward American investment in foreign industrial securities seems
to me a salutary one, not only from the standpoint of stabilization of international relationships, but from the standpoint of the stimulation of trade
between this country and the nations in which we are invatting our money.
Apparently the assistance which American capital is rendering to the industrial recovery of Europe is increasing Europe's capacity to absorb
American-made products, and it may turn out that investments in foreign
enterprises may prove a satisfactory and advisable outlet for the plethora
of capital which exists in the United States to-day.
To sum up: We have, at the present time, an unusual financial situation,
the very strength of which makes it susceptible to misinterpretation; an
JULY 9 1927.]
THE CHRONICLE
'uncertain agricultural situation; and a somewhat spotty, highly competitive
Industrial situation. Meanwhile, the total volume of business done is very
Itirge and should continue to remain large. The buying power of the public
Is great, stocks on hand are extremely small, consumption is at the very
heels of production, foreign trade is excellent, and it seems unlikely that
there will be anything more than a small seasonal slowing down in the
total flow of business. The problem of industry is not so much one of
getting business or doing business as it is of realizing a profit upon the
'business obtained.
Death of Charles A. Morss Former Governor of the
Federal Reserve Bank of Boston.
Charles Anthony Morss, Vice President of the Simplex
•Wire and Cable Co., and formally Governor of the Federal
Reserve Bank of Boston, died on July 5. Mr. Moms was
born in Boston on July 13, 1857. He became Governor of
the Federal Reserve Bank in December 1917, and with his
resignation in 1922 was succeeded by W. P. G. Harding.
The Boston "Transcript" points out that during the Liberty
Loan campaigns, Mr. Morss, as Governor of the Federal
Reserve Bank of Boston, had much to do with the success attained on each of the drives in the First Federal Reserve
District. It says:
, Be carried on his part of the great task with untiring energy. He de, voted many extra hours to speaking trips in various parts of New England.
'helping In this way, not only the Liberty Loans, but the War Savings and
other Government campaigns, as well.
Banking Suspensions for the Second Quarter of 1927.
Unlike the commercial failures, the banking suspensions
In the United States for the second quarter of this year show
a reduction from those for the corresponding period of 1926.
Moreover, improvement appears in comparison with the
returns for the second quarter of 1925. Numbering 81, with
liabilities of $25,427,900, such suspensions during the three
months recently ended contrast with 115 for $30,309,000
in the same quarter of last year, while the number in 1925
was 111, involving $42,859,470, according to the records of
R. G. Dun & Co.
Geographical analysis of the statistics shows that the decrease in the number of banking suspensions for the second
quarter of this year, as compared with the total for the
corresponding period of 1926, occurred chiefly in the Central
West. The number for that section fell from 81 to 46,
while reductions of 7 and 2 suspensions, respectively, were
reported by the South Central States and the Western group.
In no case was there an increase of size. In point of liabilities, the outstanding feature is the marked contraction in the
Central West, the amount for that section for the second
quarter of this year being about 46% less than that for the
same three months of 1926. The only other decrease occurred in the South Atlantic States.
A comparison of banking suspensions is made by sections
for the second quarter of the past three years:
Number.
1927.
New England
Middle Atlantic
South Atlantic
South Central
Central East
Central West
Western
Pacific
1
9
5
11
46
o
United States
1926
81
115
Liabilities.
1926.
1925.
7
12
6
81
8
1
4
22
20
3
50
11
1
$520,000
2,707.000
4,449,000
3,618,000
9.789, 00
2,385,000
1,959,900
115
111
$25,427,900
30.309.000
1927.
Edmund Platt Vice-Governor of Federal Reserve Board
on "Unforeseen Developments in Federal Reserve
System—Half of Federal Reserve Banks Supported from Proceeds of Bills, Bankers' Acceptances, &c.—Purchased by Federal
Reserve Bank of New York.
In what ways the Federal Reserve Act has worked out in
practice differently from what the framers of the legislation
expected, is indicated by Edmund Platt, Vice-Governor of
the Federal Reserve Board, in an article under the head
"The Unforeseen Developments in the Federal Reserve
System" published in the May number of the "Journal"
of the American Bankers' Association. Among other things
Mr. Platt, says, "I suppose it is no secret that nearly half
of the twelve Federal Reserve Bank's to-day are principally
supported from the proceeds of bills or bankers' acceptances
and short term Government securities mostly purchased for
them in the New York Market by the Federal Reserve Bank
of New York and allocated to them somewhat in proportion
to their needs." Reference is made by Mr. Platt to the
criticism in the United States Senate during the period of
low prices in 1921 that "the Federal Reserve Bank of New
175
York was loaning more money to one or two of its member
banks than the Federal Reserve Banks of Minneapolis,
Kansas City and Dallas were loaning to all their thousands
of member banks" and in stating that "the criticism was of
course literally true" Mr. Platt adds: "It would be equally
true to-day. The Federal Reserve Bank of New York was
in fact loaning only a few days ago some $38,000,000 to one
of the New York City banks, which is more than the combined loans of the Federal Reserve Banks of Minneapolis,
Kansas City, Dallas and St. Louis to all their member
banks." But says Mr. Platt,"that does not mean anything,
excepting that there is not the same demand for money in
the West just now that there is in the financial centers."
Mr. Platt, says that "the problems in New York are those of
real central bank concerned not only with the rates of interest
of the open market, but with international rates and with the
money markets of other centers, such as London, Paris,
Berlin and Amsterdam." Noting that at the present time
the rediscount rates throughout the system are uniform
Mr. Platt adds that "the tendency in recent years,has been
to exercise such control of credit as seems,advisable by
changing the rates at the New York ReservetBank, sometimes with changes also at Boston, Philadelphia, Cleveland,
and Chicago, without change of rates in the other districts."
The article in its entirety follows:
I do not suppose that any piece of great legislation ever works out in
practice exactly as its framers expect. While the Federal Reserve Act has
accomi.lished very much more than its proponents exiected—for certainly
they had no idea in 1913 that the banks would be called upon to lead in the
financing of a great war—it had had some developments that were, I think,
not foreseen or at least not expected.
I was a mernber of Congress and a member of the Committee on Banking
and Currency of the House of Re,resentatives when the Act was passed,
and was a minor participant in the debates that led to its enactment. As
Is known.the Act was a comi romise between various theories and suggested
plans. Under previous Reoublican administrations a nlan had been worked
out providing for one central bank. When the Democrats, under President
Wilson, came Into control they were already stron0y committed against
this plan, and in order to accomplish anything had to find some way of
reconciling their past romises and performances with the establishment of
a system which would, nevertheless, create central banking. They.
endeavored, therefore, to create twelve central banks, providing for coordination through the supervision of a central Federal Reserve Board
appointed by the President of the United States.
Control of Currency.
They apparently expected that this board would exercise direct control
over the issue of currency, apart from such indirect control as was given it
through apk.roval of rediscount rates over the volume of loans. A good deal
of criticism of the Federal Reserve System, particularly of the Federal
Reserve Board, was launched after the great decline in trices in 1920 and
1921, based on the assumption that the liederal Reserve Board arbitrarily
Increases and decreases the issue of Federal Reserv e notes. As a matter of
fact, Federal Reserve notes are automatically issued at the request of the
Federal Reserve banks, without any action whatever on the part of the
Federal Reserve Board as a board.
Requisitions come in from the banks to the Board and are countersigned
and sent over to the Comptroller of the Currency in a purely formal way,
and individual requests are 'lel,er brought before the Board at its meetings
at all. The supplying of Federal Reserve notes by the Reserve banks is
largely a matter of meeting a demand for certain denominations, and stocks
of the various denominations likely to be most in demand are printed in
advance and are either held in Washington, awating requests for them, or
are held at the Federal Reserve banks to be issued on the authority of the
Federal Reserve agents.
The amount of currency In circulation responds to the demands of business, the notes going out from the banks as, for instance, during the height
of the Christmas trade in December. when they always have a large increase,
and coming back to the Rosen° banks when the demand slackens.
It is the amount of credit outstanding rather than the form which that
credit takes that really counts as a factor influencing business and prices.
I think I may say that ever since the world-wide collapse of prices, wnich
followed the war and post-war inflation in 1920, the Federal Reser% e Board
and the managers of the Federal Reser,e banks have been alert to disco\ er
signs of another inflation and to prevent it, if possible, if found, but control
of Federal Reserve note issues, apart from the control of credit by the
Federal Reserve banks, has never been a part of the program of eitner tht
Board or the banks.
Fixing Re-Diseourt Rates.
It is apparent from a comparison of the rates of rediscount whit h prevailed
in the first years of the existence of the Federal Reserve banks that the
matter of rates has also worked out rather differently from what had been
expected.
In seeking to develop Federal Reserve policy, there was not much to
go by, except the policy of the Sank of England and the Central banks of
Europe, and they were in many respects so different that their precedents
were often of not very much service. The early schedules of rates at the
P'ederal Reser%e banks showed more variations of rates beween the Federal
Reserve districts than has prevailed in recent years. and also showed variations in rates as between different classes and maturities of paper In each
bank.
The necessity of the war financing led to the maintenance for severs
years of a lower rate for loans collateraled by government securities,
particularly the short term securities, than the rate applying to the rediscounting of csnunercial paper, a practice that was pretty clearly contrary
to the spirit of the Reserve Act. As soon as possible, after 1919 the Board
and the Reserve banks sought to correct this condition by raising these
rates, and there were criticisms that this change of policy was carried out
rather too quickly and had the effect of depressing the price of Liberty
bonds.
Gradually all the distinctions between different classes of paper were
done away with se far as rediscounting is concerned, and at the present time
the rediscount rates throughout the System are uniform. The tendency in
recent years has been to exercise such control of credit as seems advisable
by changing the rates at the New York Reserve bank, sometimes with
176
THE CHRONICLE
changes also at Boston, Philadelphia, Cleveland and Chicago. without
thane of rates in the other districts.
[VoL. 125.
In New York City, and to some extent in Boston, Philadelphia, Chicago
and San Francisco, loans of the Federal Reserve banks fluctuate in accordance with the condition of the money market, with large ups and downs at
Other Practices Not Contemplated.
the quarterly tax payment dates when the Treasury's operations dominate.
The problems in New York are those of a real central bank concerned not
In the early days of the System there was a certain amount of hostility
to the Federal Reserve banks, particularly among the smaller national only with the rates of interest of the open money market, but with interbanks which were compelled to join the System and carry their reserves in national rates and with the money markets of other great financial centers
the Reserve banks without interest. I remember talking with a banker in such as London, Paris, Berlin and Amsterdam. The officers of the Federal
a small town in Putnam County, New York, along about in 1915. who told Reserve Bank of New York have been called into consultation and have
me that while he thought the Federal Reserve System might prove to be a sometimes been participants in the plans for stabilization of currency in
good thing, he had charged off the investment of his bank in the stock of foreign countries, through co-operation with foreign central banks. Rates
the Federal Reser% e Bank of New York, to profit and loss, as he doubted of interest in the open market In New York are sens:tive to world conditions,
and when money Is higher in London than in New York. as is the case at
whether that stock would ever pay a dividend.
His bank, he felt sure, would never have any occasion to borrow from the present, the great New York commercial banks and also some of our great
Federal Reser% e Bank. as it could obtain better service from its cor- international manufacturing corporations carry increased balances in
respondent bank in New York. Thiwar, of course, very speedily changed London. or make investments in the London money market.
At the quarter tax payment dates, March 15, June 15. September 15 and
all that and forced enormous business into the Federal Reserve banks, but
It was a business wholly outside of the contemplation of the framers of the December 15, the Federal Reserve Bank of New York. acting both for itself
and as fiscal agent for the Treasury, has a tremendous turnover of business.
Act.
Federal Reserve banks were given authority in the original Federal The dollar value of the turnov er in the Federal Reserve Bank of New York
on
last March 15 was almost two billion dollars, to be more exact, $1,944.government
Reserve Act to act as fiscal agents of the Treasury, to buy
securities and to make loans on the security of government bonds to member 000,000. of which considerably more than a billion was for the Treasury
banks purely as a formal matter and as much as anything else for the purpose Department, in connection with the cons crsion of the Second Liberty Loan
of making the Act constitutional. It was not expected that they would bonds into 33.6 per cent notes, and payment of the notes maturing on that
have any occasion to buy government bonds, except as they took them for date, and also the collection of income taxes. Therm matters affect also,
the purpose of absorbing gradually the circulation of national bank notes through in lesser magnitude,the Federal Reserve banks of the other financial
which the Act provided was to be at a rate not to exceed $25,000,000 a centers particularly Philadelphia. Boston and Chicago.
year.
Building Up an American Discount Market.
The war not only forced enormous amounts ef government securities into
We have been endeavoring ever since the Federal Reserve Act gave the
the Federal Reserve banks used as collateral for loans made to member banks
with which they purchased Liberty bonds, but it stepped the contemplated national banks the right to accept drafts to build up a bill market similar to
purchase of the old low rate bonds which secured the circulation of national the market which for many years has financed most of the world trade in
bank notes, and this has not yet been resumed, and I think I may say that London. Most of the acceptance business naturally centers in New York,
but there are banks in Boston, Philadelphia, Chicago and San Francisco,
there seems to be no apparent intention of resuming it in the near future.
and a few elsewhere, that make a specialty of accepting.
As to Note Retirement.
It is naturally a business that belongs to the great seaport cities, partiIt is clear that the framers of the Reserve Act expected that the national cularly to the financial centers, as it has to do chiefly with financing foreign
bank notes would be superseded by Federal Reserve notes, but the Act trade. Not much acceptance business can be built up elsewhere, and withnevertheless does not provide a mandatory method for doing this. Section out a bill market no Federal Reserve bank can do a real central banking
18 provides that any national bank desiring to retire or reduce its circulation business in the sense in which the term is understood abroad.
All of the Federal Reserve banks to some extent, particularly those in
may file with the Treasurer of the United States an application to sell bonds
for its account at par and accrued interest. The Treasurer is then required the eastern financial centers, do one kind of business with their great city
to submit a list ofsuch applications quarterly to the Federal Reserve Board, banks and another kind with their country member banks.
which may require the Federal Reserve banks to buy them up to $25,The city banks are in and out of the Federal Reserve bank for large
000,000 in any one year. Then the Secretary of the Treasury may issue 3 amounts, their loans running generally for very short periods, sometimes
per cent securities to the Reserve banks in exchange for the 2 per cents. only for one day. while loans to the country banks are either rediscounts of
During the early days of the System, bonds bearing the circulation,rivilege notes, having anywhere from a month to five or six months to run, or, it
were at a discount and from time to time offers were made to the Treasurer made on their fifteen-day notes, are frequently renewed.
of the United States. The Federal Reserve banks obtained in this way
The citicism was made in the United States Senate during the period of
and by direct purchase $56.256,000. which were exchanged, for the 3 low prices of 1921, that the Federal Reserve Bank of New York was loaning
per cent conversion securities went out of existence.
more money to one or two of its member banks than the Federal Reserve
Obviously there is no Inducement to offer them when they are at a banks of Minneapolis, Kansas City, and Dallas were loaning to all of their
premium, which has been the case now for a number of years, and with the thousands of member banks. The criticism was, of course, literally true.
exception of the few taken by Reserve banks, as above mentioned, the and doubtless sounded in the agricultural sections of the country like a
only reduction of national bank note circulation since the establishment of terrible indictment. It would be equally true to-day. The Federal Reserve
the Federal Reserve System was accomplished in February 1925. when the Bank of New York was,in fact, loaning only a few days ago some $38,000,Secretary of the Treasury called in and paid some $80.000,000 of 4 per 000 to one of the New York City banks, which is more than the combined
cent bonds. About $75.000,000 of 2 per cent bonds bearing the circulation loans of the Federal Reserve banks of Minneapolis, Kansas City. Dallas
privilege could be called now—became callable in 1916—but to pay them and St. Louis to all of their member banks, but, of course, that does not
off would involve a loss of interest to the Treasury. The rest of the 2 per mean anything, excepting that there is not the same demand for money in
cents become callable in 1930. and it has been said that the Secretary of the the West just now that there is in the financial centers. The bank that
Treasury has already given some study to the question of the advisability was borrowing 838,000,000 from the Federal Reserve Bank of New York a
of calling them.
few days ago had a larger capital and surplus probably than the aggregate
Use in Agricultural Sections.
of all the banks borrowing from the western Federal Reserve banks
The Federal Reserve System, in pursuance of the provisions relating to mentioned. The rates of rediscount just now are exactly the same in the
collections, has developed a most efficient system of collecting checks and western Federal Reserve banks as they are in the Federal Reserve Bank of
has eliminated so-called "exchange" charges throughout the commercial New York.
In fact, they are uniform throughout the country, which. In my opinion,
sections of the country, and through the Gold Settlement Fund has eliminated the necessity for constantly shipping gold or currency back and forth is probably not exactly as it should be, for conditions are certainly not the
across the country. These services are rendered free and employ a good- same in all the Federal Reserve districts.
sized army of people in the Federal Reserve banks. They also entail an
More Stable Money Rates.
expense which was probably beyond anything anticipated and which makes
The fluctuations of money rates in the financial centers, and particularly
the problem of the support of some of the Federal Reserve banks at times a
in
New
York,
are
closely watched by the Federal Reserve Board and by the
ittle difficult.
I think it is pretty clear that the proponents of the Federal Reserve Act managers of the Federal Reserve banks, and through the operations of the
system
the
larger
fluctuations which in old times used to cause a good deal
never doubted that the Federal Reserve banks located in agricultural
districts, where there is always seasonally at least a large demand for money, of trouble have been eliminated, while even the minor fluctuations have
been
somewhat brought under control.
would have any difficulty in supporting themselves through loans to their
This is not due so much to changes of discount rates as to the operation
member banks, but it is precisely these Federal Reserve banks which do not
of
what
are called repurchase agreements, through which bankers' acceptsupport themselves by their own independent operations, and I suppose it
ances and short term government securities flow in and out of the Federal
Is no secret that nearly half of the twelve Federal Reserve banks to-day are
Reserve hanks in accordance with money rates. If call money goes up so
principally supported from the proceeds of bills or bankers' acceptances
that the bill brokers in New York find difficulty In carrying their portfolios
and short term government securities, mostly purchased for them in the
they take some of their bills to the Federal Reserve Bank and sell them,
New York market by the Federal Reserve Bank of New York and allocated
either outright or with an agreement of repurchase. The New York bank,
to them somewhat in proportion to their needs.
and I think the same is true in Boston and Philadelphia, purchase all bills
The loans of the western Federal Reserve banks fluctuate a good deal
offered
them at a fixed rate, which is a little below the rediscount rate.
seasonally and are considerably higher in the fall when the crops are moving
If they are getting too large a proportion of bills, that rate is raised. They
than in the winter and spring, when the crops have been sold and before
do not purchase short term government securities in quite the same way,
the spring demand starts up; but it may be surprising to know that but do take
them at a rate below the rediscount rate with repurchase
throughout most of the winter the total bills discounted in each of three of agreements, RO
that they flow in and out with direct relation to the fluctuathe western Federal Reserve banks have been considerably less than
tions of the call money market.
$10,000,000, and at times not much more than 810.000,000 in one of the
In this respect the Federal Reserve banks In the eastern financial centers
others. To be more specific. on last March 9 the Federal Reserve Bank of
operate in a manner very similar to the operations of the Bank of England,
St. Louis had loaned but $10,784.000 to its member banks, the Federal
steadying the money market by preventing violent fluctuations in rates.
Reserve Bank of Minneapolis but $3.051.000, the Federal Reserve Bank of
Kansas City $7.051,000, and the Federal Reserve Bank of Dallas only
Preventing Inflation.
$2,709.000.
These operations, however, do not have very much Influence on the
These figures are gradually Increasing as the spring demand comes along, volume of credit
outstanding in the direction of preventing inflation or
and the weekly statement on March 23 showed that St. Louis was loaning deflation. Some
part of this work is done through an Open Market Invest$14.998,000, Kansas City $10.178.000, Minneapolis $5,966,000. but Dallas ment Committee,
which buys or sells, with the approval of the Federal
only $3.357.000. The Dallas bank held at that time $25,647.000 of govern- Reserve Board, short
term government securities. The portfolio of these
ment securities, nearly all certificates of indebtedness or Treasury notes, securities, handled
by the Open Market Committee. Is frequently carried
and $9,114,000 of bills bought in the open market, a total of $34,761.000 for rather long
periods without much change, excepting with relation to
of purchased securities as compared with $3,357,000 of loans to banks in its the big fluctuations
on the quarterly day tax-paying periods.
district.
The carrying of this portfolio, however, presents a means of offsetting
All of which goes to show that it is difficult to create by fiat of law a centgold imports should they become too large or of relieving pressure should
ral bank in a town where there is no central banking_busineas to do.
int ereat rates show a tendency to become high enough to be burdensome to
business. Most of these operations center around the Federal Reserve
Loans in Financial Centers.
Bank of New York. but are operated through consultations with the
The assets of the Reserve banks in the financial centers, of course, show governors of the Federal Reserve Banks of Boston. Philadelphia, Cleveland
a very much larger proportion of loans to purchased paper, thus the Federal and Chicago, who are members of the so called Open Market Committee.
Reserve Bank of Philadelphia had on March 23 a total of $19.686,000 of
The problems of most of the a estern and southern Federal Reserve banks
government securities and 812.000.000 of bills against $45,267,000 of loans are In the main entirely different from those of the eastern Federal Reserve
outstanding.
bank'.
JULY 9 1927.]
THE CHRONICLE
177
savings, but merely postponements. The revision of the estimate of the
amount chargeable to debt retirement from foreign repayments is of a bookkeeping character and does not actually affect the resources of the Government available for debt retirement.
Total expenditures chargeable against ordinary receipts, compared with.
1926, show a decrease for 1927 of *91,000,000. This difference is, of
course, a net figure of increases and decreases. The principal item of the
increase are $31,000,000 in general expenditures and $32,000,000 on acTreasury Surplus of $635,809,921—Interest on Govern- count of the sinking fund and other debt requirements chargeable against
ordinary receipts.
ment Debt Below 4% for First Time Since War.
The larger items of decreases are $45,000,000 for interest payments;
In making known the record-breaking surplus with which $72,000,000 on account of customs and internal revenue refunds; $12,000,the United States Government ended the fiscal year which 000 less in postal deficieny charges; $10,000,000 decrease on account of
for civil service retirement fund investments, which, under present
closed June 30 1927, Acting Secretary of the Treasury Og- charges
procedure, appear under general expenditures, and other items aggregatden L. Mills stated that more than half of the surplus of ing about $15,000,000.
The Surplus.
$635,809,921 "is due to receipts on account of disposal of
The increase of $102,000,000 in receipts and the decrease of $150,000,000
capital assets, back tax collections in excess of tax refunds,
in expenditures over and under the figures estimated last fall resulted is
and other items of a fast disappearing or non-recurring char- a surplus of $252,000,000 in excess of the estimate. Of the surplus $611,acter." He also stated that "of the surplus $611,000,000 000,000 has already been applied to the retirement of public debt obligaor any other purpose. Twentyhas already been applied to the retirement of public debt tions and is not available for tax reduction
four million dollars has been carried over as an increase in the net balance
obligations and is not available for tax reduction or any in the general fund at the close of the year over the balance at the beginother purpose. Twenty-four million dollars has been car- ning and will be used for debt retirement purposes early in the fiscal year
ried over as an increase in the net balance in the General 1928.
More than one-half the surplus of $635,000,000 is dike to reecipts on acFund at the close of the year over the balance at the begin- count of disposal of capital assets, back tax collections in excess of tax
ning, and will be used for debt retirement purposes early refunds and other items of a fast disappearing or non-recurring character.
From latest figures now avaiPable, back tax collections will exceed $300,in the fiscal year 1928." Mr. Mills, in his statement, also
000,000 and collections on account of capital stock tax of corporations, now
announces that the total gross of the fiscal year amounted repealed, will amount to over $7,000,000. Deducting from the aggregate
to $18,511,906,931, as compared with $19,643,216,315 at the of these amounts the sum of $117,000,000 paid for tax refunds leaves a net
from this source.
close of the fiscal year 1926, or a decrease of $1,131,309,383. balance of $190,000,000 in revenueContributing
to Present Year's Surplus.
Special and Non-Recurring Items
He states also that "the annual interest rate on the interestThe work of the Internal Revenue Bureau is fast becoming current, and
is
bearing debt on June 30 1926 was 4.09%, as compared with while some net receipts on this account will continue to be realized, itwill
expected that after the fiscal year 1929 net receipts from this source
3.96% at the close of the fiscal year 1927,'. and says "this be negligible.
Is the first fiscal year in which the average interest rate
Receipts from capital assets on account of railroads aggregated about
has been below 4% since the close of the World War." Mr. $90,000,000; from Federal Farm Loan bonds and other minor securities,
$63,000,000, and from the War Finance Corporation, $27,000,000.
Mills's statement follows:
All of the Farm Loan bonds loaned by the Government have been repurThe net results of the financial operations of the Government covering chased by the Federal Land banks, so that no further receipts from this
the fiscal year 1927 are now available on the basis of figures appearing in source will occur, while receipts on account of railroad securities in apprethe daily Treasury statement for June 30 1927. The total ordinary re- ciable amounts will disappear in a relatively short period of time. The
ceipts amounted to $4,129,394,44L10 and the expenditures chargeable War Finance Corporation has practically completed liquidation of its assets,
against such receipts were $3,493,584,519.40, resulting in a surplus of the proceeds of which have been deposited in the Treasury.
$635,809,921.70, as compared with one of $377,767,816.64 in 1926.
It will be apparent, therefore, that, without these special and nonReceipts.
recurring items, which aggregate .$370,000,000, the surplus would have
Total ordinary receipts are derived from income taxes, miscellaneous been about $265,000,000, of which a considerable part is to be attributed
internal revenue and customs, all of which may be classified as revenue to decrease in expenditures, some of which represents a postponement,
from taxes, and so-called miscellaneous receipts. Under this last head are rather than actual saving.
included such items as foreign repayments, the proceeds from the sale of
Publio Debt.
capital assets, as, for'instance, railroad and other securities, and a vast
The total gross debt at the close of the fiscal year amounted to $18,number of miscellaneous resources, such as Panama Canal tolls and mineral 511,906,931.85, as compared with $19,643,216,315.19 at the close of the
oil and gas land fees, which in the aggregate yield a large income but fiscal year 1926, or a decrease of $1,131,309,383.34. Of this reduction,
which must not be confused with revenues from taxation.
$519,554,844.78 is to be attributed to the sinking fund and other debt reThe aggregate of tax receipts, that is, customs, income tax and miscel- tirements chargeable against ordinary receipts and $611,754,538.56 to debt
laneous internal revenue receipts, was $3,475,000,000, or $58,000,000 in retirement from the surplus of receipts over expenditures.
excess of receipts from these sources in 1926 and $49,000,000 in excess of
Reduction in Interest Rate on Debt.
the amount estimated by the Treasury last October. The excess over the
The annual interest rate on the interest-bearing debt on June 30 1926
estimate is accounted for by increased collections of income and profits
year 1927.
taxes, due from prior years. The Treasury's estimate of current revenue was 4.09%, as compared with 3.96% at the close of the fiscal
This is the first fiscal year in which the average interest rate has been
from these sources proves to have been substantially correct.
Income tax receipts aggregated $2,225,000,000, as compared with $1,982,- below 4% since the close of the World War.
Total interest payments in the fiscal year 1927 were $787,000,000. In000,000 in 1926 and as against an estimate of $2,190,000,000. As already
reduction of
stated, the increase over the estimate is•accounted for by increased collec- terest payments in 1928 are estimated at $720,000,000, or a
$67,000,000.
tions of back taxes over earlier expectations.
In the fiscal year 1927 the regular maturities of the debt on the quarCustoms yielded $605,000,000, as compared with an estimate of $616,average interest
000,000, which loss was more than made good by receipts of $644,000,000 terly tax payment dates aggregated $1,908,208,000, at an
aggregated a
from miscellaneous internal revenue, as compared with the estimate of rate of 4.157%. New securities issued on the quarter days
rate of 3.328%.
interest
annual
par
amount
of
average
$1,341,833,000, at an
$619,000,000. In 1926 customs receipts were $579,000,000 and miscellaThe reduction in interest, computed on an annual basis, on the amount of
neous internal revenues $855,000,000.
the new securities issued as a result of this reduction in the average interMiscellaneous Receipts.
est rate amounts to about $11,000,000. The net decrease in the interest
Miscellaneous receipts aggregated $654,000,000, as compared with an
due to all refunding operations at
estimate of $600,000,000 and a yield last year of $545,000,000. The in- charge, computed on an annual basis,
lower interest rates concluded during the fiscal year 1927 is $23,000,000.
crease over the estimate is entirely accounted for by one item. It was
During the fiscal year just closed the Treasury undertook the necessary
estimated that approximately $32,000,000 would be received from the
financial operations looking to the early retirement or refunding of $3,104,railroads in discharge of their obligations, including interest payments,
000,000 of Second Liberty Loan bonds outstanding on Feb. 28 1927. On
as compared with $36,000,000 in 1926, wheeras approximately $90,000,000
June 30 the amount outstanding had been reduced to approximately $1,276,was received. In this connection, it should be noted that the indebtedness
000,000, after taking into consideration accepted exchanges not yet cleared
of the railroads to the Government is rapidly being liquidated arid that through
these accounts.
receipts from this source cannot be anticipated in any large amount after
A brief reference to the June 30 surplus appeared in these
the fiscal year 1929.
All told, the total ordinary receipts of $1,129,000,000 are $102,000,000, columns July 2, page 42.
or 2.3%, over the estimate. While there were, of course, a number of
minor increases and decreases, which largely offset each other, two items
account for the increase of $102,000,000, namely, under the taxation Four-Year Comparison of Member Bank Operations in
head, increased collections of back faxes, and, under the head of miscellaNew York Federal Reserve District.
neous receipts,- an excess of $57,000,000 of receipts from the railroads over
In making public a four-year comparison of bank operathe anticipated amount. It is significant that both these items fall in the
tions in this district, the Federal Reserve Bank of New
class of resources that cannot be considered of a permanent character.
York states that "in 1926 the banks of the district generally
Total Ordinary Receipts.
Total ordinary receipts in the fiscal year 1927 of $4,129,000,000, as com- made slightly larger earnings than in any of the previous
pared with $3,962,000,000 for 1926, show a total increase of $167,000,000 three
years." The Bank's circular in the matter is reprofor 1927. The principal items of increase in 1927 were $26,000,000 in
customs receipts; $32,000,000 in internal revenue receipts; $11,000,000 duced herewith:
In foreign repayments; $53,000,000 on account of railroads; $29,000,000
FEDERAL RESERVE BANK OF NEW YORK.
for Federal farm loan bonds arid other securities, and $16,000,000 net
(Circular No. 788—May 27 1927.)
from other miscellaneous receipts.
A Comparison of the Operations of Representative Member Banks in the
Expenditures.
Second Federal Reserve District for the Years 19234926, Grouped
Total expenditures chargeable against ordinary receipts, amounting to
According to Size of Banks and Character of Business.
$3,493,000,000, were $150,000,000 less than the estimate. The difference
The following tables, prepared from data reported currently by member
is accounted for by $20,000,000 of expenditures postponed because of the banks, give a four-year comparison of bank operations in the Second Fedfailure of the Second Deficiency bill ; a $35,000,000 decrease in tax re- eral Reserve District, in such form that each bank may compare its own
funds, due to change in the revenue law; the revision in the amount charge- operations with those of banks of similar size.
able under the head of "debt retirement," necessitated by the non-ratificaIn 1926 the banks of the district generally made slightly larger earnings
tion of the French settlement, and the remainder to reductions in other than in any of the previous three years. The ratio of gross earnings to
loans and investments was 6.4% in 1926, compared with 6.2 in 1925; the
expenditures.
The $20,000,000 resulting from the failure of the Second Deficiency bill ratio of net earnings, before charge-offs and dividends, to capital bands
to pass and die $35,000,000 decrease in tax refunds do not represent actual was 18.9% in 1926, compared with 18.7 in 1925. These larger earnings
There has been such a tremendous number of failures among small banks
in the West,and in some parts of the South.that a good deal of the attention
of managers of the western Reserse banks has been given to the nursiak of
over-extended institutions, and the collection of paper from failed banks.
The Federal Reserve banks of the West and South have,in fact, sustained
considerable losses through these failures, though the losses in proportion
to their resources were in each case relatively small.
178
THE CHRONICLE
were due in part to a large volume of business,
which created an active
demand for funds. The level of short-term
interest rates was slightly
higher than in the preceding year, and the
banks employed a slightly larger
proportion of their funds in loans. Earnings
other than interest and discount also showed an increase accompanying
rising security prices, and
losses charged off were smaller than in
the preceding three years.
The ratio of capital funds to gross
deposits, which is one of the important indexes of a bank's strength, showed
a fractional increase for the first
time in several years, due to an increase
from 13.6% to 14.8% in the
group of large New York City
banks and increases in the two groups of
[VOL. 125.
middle-sized banks having from one million to five million
dollars of loans
and investments. Some of these increases were made by
banks whose
capital ratios had fallen below the 10% which has been
commonly regarded as a working minimum.
There was a continuation of the tendency which has persisted
for a number of years for demand deposits to decrease relative to
gross deposits, due
to the rapid growth of time deposits. Demand deposits on the
average are
now 52% of grass deposits, compared with 57% in 1923.
The expense ratios generally showed a high degree of stability,
but there
were slight increases in wages and interest paid on
borrowed money.
TABLE I.-AVERAGE OPERATING RATIOS OF REPRESENTATIVE
MEMBER BANES IN SEVEN GROUPS.°
(40 Selected Banks In Each Group.)
Read the table as follows: In
the banks of Group I (banks with loans and Investments under $500.000)
capital funds averaged 22.7% of gross deposits In 1923,
22.3%
In 1924, 20.1% In 1925. and 19.% In 1928.
Size of Groups Divided According to Amount of Loans and Investments
Indicated.
i.
Under $500.000.
II.
III,
5500 000 to 3999,999.
$1.000.000 to $ .999,990.
4
4
4
4
1923. 1924. 1925. 1926. Year 1923. 1924. 1925 1926. Year 1923. 1924. 1925.
1926. Year 1923. 1924. 1925. 1926. Year
Av.
Av.
Av.
Av.
Ratio Expressed In Pereetztages,
General Average.
CAPITAL
1. Capital funds b to gross deposits
Your figure.?
16.1 15.6 15.3 15.4 15.6 22.7 22.3 20.1 19.0 21.0 23.5 22.2
21.3 19.3 21.6 14.3 14.8 14.5 16.4 15.0
LOANS
2. Loans and Investments to total available 85.1 84.4
84.8 84.3 84.7 84.5 84.1 84.0 84.3 84.2 86.9 86.1 86.3 83.4
85.7 88.3 87.5 86.7 86.9 87.4
funds c
Your figures
3. Loans to loans and Investments
56.9 56.9 56.9 58.8 57.4 47.5 47.8 46.7 47.5 47.4 47.5 48.7 49.2 48.9
48.6 48.9 50.2 47.9 51.2 49.6
Your figures
DEPOSITS
4. Demand deposits to gross deposits
Your figures
5. Interest paid on deposits to gross deposits
Your figures
57.2 55.2 54.4 52.0 54.7 59.3 58.4 56.3 51.7 56.4 53.3 50.6 50.9 46.3 50.3
42.4 40.1 40.2 41.8 41.1
2.1 2.2 2.3 2.3 2.2 1.8 2.0 2.0 2.2 2.0 1.9 2.0 2.1
2.1
2.0 2.4 2.5 2.5 2.5 2.5
_
EARNINGS
6. Gross earnings to loans and Investments__ _
6.2 6.1 6.2 6.4 6.2 6.2 6.2 6.4 6.7 6.4 6.1 6.1 6.1 6.4 6.2
6.1
6.2 6.4 6.6 53
Your figures
7. Gross earnings to total available funds c
5.2 5.2 5.2 5.4 5.3 5.2 5.2 5.3 5.5 5.3 5.3 5.3 5.2 5.4
5.3 5.4 54 5.5 5.7 5.5
Your figures
8. Net earnings to total available funds c_ -- _
1.6 1.5 1.6 1.6
1.6
1.6
1.5
1.6 1.6
1.6 1.8 1.7 1.6 1.8 1.7 1.6
1.5
1.7 1.8 1.7
Your figures
9. Net earnings to capital funds b
13.6 13.4 13.7 13.9 13.7 10.5 10.3 11.6 11.2 10.9 1.22 11.9 11.2 13.6 12.2
14.7 13.7 14.7 14.8 14.5
Your figures
10. Earnings other than Interest and discount to 9.6
11.5 12.2 12.6 11.5 7.3 8.4 11.8 11.7 9.8 7.6 8.1
7.6 8.4 7.9 7.7 9.4 11.2 12.0 10.1
gross earnings
Your figures
DISPOSITION OF GROSS EARNINGS
Ratio of the following items to gross earnings
11. Salaries and wages
Your figures
12. Interest paid on borrowed
money
Your figures
13. Interest paid on deposits
Your figures
14. Taxes
Your figures
15. Other expenses
Your figures
10. Total expenses
Your figures
17. Net earnings (before recoveries; on previous
charge-offs, current charge-offs, and
dividends)
Your figures
LOSSES
18. Losses charged off on loans and discounts to
gross earnings
Your figures
19. Losses charged off on securities to gross
earnings Your figures
18.8 19.1
18.5 18.6 18.8 23.2 23.8 22.3 22.0 22.8 19.6 20.4 20.3 19.5 19.9 18.4 18.2
17.1 17.9 17.9
1.0
1.2 1.2 1.1
1.2 1.0
1.3 1.2 1.4 1.3 1.2 1.1
1.3 1.2 0.8 0.7 1.1
1.0
34.3 35.9 36.2 36.1 35.6 27.2 29.3 30.3 30.9 29.4 28.1 29.9 32.2 32.2
30.6 36.9 38.6 37.8 36.6 37.5
4.7 4.9 4.5 4.5 4.7 5.2 5.2 4.7 4.4 4.9 5.6 6.4 5.8
5.3 5.8 4.1
4.9 4.7 4.5 4.6
11.2 10.6 10.5 10.5 10.7 13.8 12.4 12.4 12.8 12.9 11.4 10.8 10.8 9.7 10.7
9.8 9.5 9.1
9.6 9.5
1.6
0.9
70.6 71.3 70.7 70.0 70.9 70.6 71.8 70.7 71.4 71.1 66.1 68.9 70.3 67.8
68.3 70.2 72.0 69.5 69.7 70.4
29.5 28.7 29.3 29.1 29.1 29.4 28.2 29.3 28.6 28.9 34.2 31.1 29.7 32.2 31.8
29.8 28.0 30.5 30.3 29.6
4.0
4.3
3.7
3.4
3.9
1.9
2.5
2.2
1.4
2.0
1.9
2.5
3.0
1.6
2.3
2.8
3.3
2.8
3.4
3.1
4.4
2.6
2.0
2.0
2.8
6.5
3.1
1.4
0.9
3.0
7.3
2.2
2.6
2.0
3.5
4.0
2.2
2.7
2.9
3.1
IV.
32,000,000 to 54.999,999.
V.
35.000.000 to $9,999,999.
Ratio Expressed in Percentages.
CAPITAL
1. Capital funds b to gross deposits
Your figures
VI.
$10 000.000 and up.
Outside New York City.
VII.
310.000 000 and up,
New York City.
4
4
4
4
1923. 1924. 1925. 1926. Year 1923. 1924 1925. 1926. Year 1923. 1924.
1925. 1926. Year 1923. 1924. 1925. 1926. Year
Av.
Av.
Av.
Av.
_
11.7 11.6 11.8 12.4 11.9 13.1 13.1 13.8 13.7 13.4 13.3 12.7
12.2 12.0 12.6 14.3 12.6 13.6 14.8 13.8
LOANS
2. Loans and investments to total available 87.9 87.3 88.6 87.3 87.8
87.6 86.7 87.4 87.5 87.3 83.1 83.7 85.9 84.1 84.2 77.2 75.1
funds c
71.8 75.5 75.9
Your figures
3. Loans to loans and Investments
56.4 56.8 55.9 56.4 56.4 58.8 59.5 62.1 66.5 61.7 65.7 62.7
62.9 66.5 64.5 73.6 72.7 73.5 74.9 73.7
Your figures
DEPOSITS
4. Demand deposits to gross deposits
Your figures
5. Interest paid on deposits to gross deposits
Your figures
43.2 41.5 42.0 36.7 40.9 50.6 48.8 45.8 46.6 48.0 64.4 61.1
60.5 57.1 60.8 87.1 86.1 85.4 83.7 85.0
2.5 2.6 2.6 2.8 2.6 2.5 2.6 2.6 2.7 2.6 2.3 2.4
2.4 2.4 2.4
1.6
1.5 1.6
1.6
1.6
EARNINGS
6. Gross earnings to loans and Investments.... 6.1
6.1 6.0 6.3 6.1 6.2 6.3 6.3 6.3 6.3 6.2 6.2
5.9 6.1
6.1 6.2 5.9 6.0 6.3 6.1
Your figures
7. Gross earnings to total available funds C.
5.4 5.3 5.4 5.5 .5.4 5.4 5.5 5.5 5.7 5.5 5.1
5.2
5.1
5.2 5.2 4.8 4.4 4.6 4.9 4.7
Your figures
8. Net earnings to total available funds c
1.5
1.3 1.5 1.4
1.4
1.5
1.6
1.6
1.5 1.6 1.4 1.5
1.5 1.5
1.5
1.5
1.4
1.5
1.6 1.6
Your figures
9. Net earnings to capital funds b
15.7 13.8 15.6 15.5 15.2 15.2 16.0 15.0 14.2 15.1 13.4 14.4
14.4 14.4 14.2 13.3 13.5 13.4 13.8 13.5
Your figures
10. Earnings other than Interest and discount to 8.2 10.1 10.6 9.7 9.7 10.2 11.2 12.3 13.1
11.7 10.4 13.4 11.5 11.4 11.7 15.7 20.1 20.7 21.8
gross earnings
19.0
Your figures
DISPOSITION OF GROSS EARNINGS
Ratio of the following Items to gross earnings.
11. Salaries and wages
Your figures
12. Interest paid on borrowed money
Your figures
13. Interest paid on deposits
Your figures
14. Taxes
Your figures
15. Other expenses
Your figures
16. Total expenses
Your figures
17. Net earnings (before recoveries on previous
charge-offs, current charge-offs, and
dividends)
Your figures
LOSSES
18. Lasses charged off on loans and discounts to
gross earnings
Your figures
19. Losses charged off on securities to gross
earnIna4 Your figures
16.8 17.4 17.3 16.9 17.1
16.3 16.4 16.1
17.1
16.5 16.6 16.7 16.3 16.4 16.5 20.6 20.8 20.1 20.3
20.4
1.1
2.5 0.9 1.2 1.5 1.5 2.0 0.4
1.2
1.2 1.2
90.8 42.9 42.4 43.1 42.3 39.9 40.5 40.8 41.0 40.5 38.1
39.4 40.5 41.0 39.8 29.3 30.5 29.6 28.0 29.4
1.3
0.8
3.6
4.2
3.5
4.3
3.9
4.6
4.4
4.3
4.5
4.5
10.4 10.2
9.3
9.1
9.8
9.5
8.8
9.0
9.0
9.1
0.8
1.1
1.0
72.9 75.5 73.3 74.5 74.1
1.7
0.6
0.8
71.9 70.6 71.1
1.1
4.6
4.2
3.7
3.7
10.8 10.2
9.9
9.9 10.2 12.6
4.1
5.2
4.7
5.0
4.7
4.9
12.5 12.7 13.5 12.8
72.7 71.6 72.6 71.5 71.6 72.5 72.1 69.7 69.0
68.5 67.7 68.7
27.1 24.5 26.7 25.5 25.9 28.1 29.4 28.9 27.3 28.4 27.4 28.5 28.4 27.5 27.9 30.3
31.0 31.5 32.3 31.3
4.3
4.6
3.9
3.8
4.2
3.5
5.0
2.6
5.1
4.1
6.4
5.6
5.7
4.7
5.6
7.3
6.5
5.7
4.1
5.9
3.4
3.3
1.8
1.3
2.5
4.5
2.8
1.4
2.9
2.9
2.4
2.5
2.2
1.9
2.3
1.9
2.2
1.7
2.0
2.0
a Ratios 1 to 9 are coniputed from the average
figures of eon,Ilion reports and from the total fig dee of section one of ti e two seml-annua earnings reports;
10 to 17 are taken from section one of the Iwo semi-annual
ratios
earnings reports; ra los 18 and 10 are taken from items 5(a) and 5(1) of section
two a id ite n I of section oue
of the two send-annual earnings reports. The same hanks were used in each year.
except for a very few substitutions for those whirl; changed their classes.
S Capital, surplus and undivided profits. c Capital, surplus. undivided profits, deposits, borrowed
money, and notes In circulation.
JULY 9 1927.]
THE CHRONICLE
179
TABLE II.-AVERAGE OPERATING RATIOS OF REPRESENTATIVE MEMBER BANKS GROUPED ACCORDING TO AMOUNT OF TIME DEPOSITS
Read the table as follows: In banks with no time deposits capital funds averaged 35.8% of gross deposits in 1923, 38.9% In 1924, 36.9% in 1925. and 31.9% in 1926
in banks with time deposits equal to less than 25% of their gross deposits, capital funds averaged 15.7% of gross deposis in 1923, 14.8% In 1924, 15.3% in 1925.
and 15.4% in 1926.
Groups of Banks Divided According to the Percentage of Time Deposits to Gross Dep
Ratio Expressed in Percentages.
0.
Under 25.
25-49.9.
50-74.9.
75 and Up.
1923. 1924. 1925. 1926. 1923. 1924. 1925. 1926 1923. 1924. 1925. 1926. 1923. 1924. 1925. 1928. 1923. 1924. 1925. 1928.
CAPITAL
1. Capital funds b to gross deposits
Your figures
35.8 38.9 36.9 31.9 15.7 14.8 15.3 15.4 15.9 15.6 14.9 16.5 14.2 13.8 14.0 14./ 12.5 13.1 13.4 13.6
LOANS
2. Loans and investments to total available 83.3 81.0 79.3 82.1 78.7 77.4 79.1 79.0 85.0 84.9 83.5 82.7 87.7 86.8 88.0 86.7 89.7 88.0 87.9 88.6
funds c Your figures
3. Loans to loans and investments
53.7 53.2 52.9 54.1 72.8 69.5 67.9 67.3 57.9 60.6 60.7 65.0 51.9 53.8 52.7 55.7 37.2 38.8 42.4 46.5
Your figures
DEPOSITS
4. Demand deposits to gross deposits
Your figures
5. Interest paid on deposits to gross deposits
Your figures
100
100
0.8
EARNINGS
6. Gross earnings to loans and Investments._ 5.9
Your figures
7. Gross earnings to total available funds c
4.9
Your figures
8. Net earnings to total available funds c
2.0
Your figures
9. Net earnings to capital funds b
10.2
Your figures
10. Earnings other than interest and discount to 7.5
gross earnings
Your figures
DISPOSITION OF GROSS EARNINGS
Ratio of the following items to gross earnings:
11. Salaries and wages
Your figures
12. Interest paid on borrowed money
Your figures
13. Interest paid on deposits
Your figures
14. Taxes
Your figures
15. Other expenses
Your figures
16. Total expenses
Your figures
17. Net earnings (before recoveries on previous
charge-offs, .current charge-offs, and
dividends)
Your figures
LOSSES
18. Losses charged off on loans and discounts to
gross earnings
Your figures
19. Losses charged off on securities to gross
earnings Your figures
100
100
0.9
0.9
0.8
5.9
5.8
4.8
4.8
1.7
92.3 91.7 88.8 90.7 59.1 59.5 59.0 59.6 38.2 38.8 38.7 37.7 20.7 21.9 20.8 20.9
1.7
1.5
1.7
1.6
2.1
2.2
2.1
2.1
2.5
2.5
2.6
2.6
3.0
3.1
3.0
3.1
6.3
6.1
5.9
5.9
6.1
6.1
6.2
6.3
6.5
6.2
8.2
6.2
6.4
6.3
6.4
6.2
6.5
5.2
4.8
4.6
4.7
4.9
5.2
5.2
5.3
5.3
5.4
5.4
5.5
5.6
5.7
5.6
5.4
5.6
1.8
1.9
1.5
1.5
1.5
1.6
1.5
1.5
1.6
1.6
1.5
1.5
1.5
1.6
1.8
1.5
1.6
1.8
8.7
8.8
9.8 12.6 12.9 12.8 13.5 13.3 13.2 14.4 13.4 14.3 13.9 14.1 14.3 16.3 14.1 14.7 15.0
7.8
8.6 14.1 12.3 15.9 14.6 17.7
9.4 11.0 13.7 12.6
8.8 10.1 10.7 10.9
9.5 12.3 12.6 10.8
26.2 27.6 26.6 27.3 20.1 21.3 20.5 20.5 20.2 19.8 19.8 20.2 17.0 17.8 17.1 17.4 13.3 14.2 14.1 14.2
2.0
1.9
1.4
1.4
2.5
0.7
1.2
1.5
1.5
1.0
0.9
1.3
1.4
0.9
1.0
1.1
0.3
0.3
0.4
0.7
11.4 12.4 13.9 12.9 29.1 29.1 30.2 28.4 32.9 34.8 33.7 32.2 39.2 39.8 40.4 39.9 46.5 47.0 45.6 47.3
4.3
4.2
4.3
3.9
4.3
4.0
4.4
12.4 12.5 12.3 13.7 12.4 11.8 11.5 12.3 12.8 11.3 11.3 12.0 10.0 10.1
9.8
9.9
7.4
7.4
7.9
6.4
7.7
9.8
7.9
7.5
5.4
5.2
5.1
4.6
4.7
4.8
4.4
4.5
4.0
59.7 64.1 62.0 62.8 69.5 68.5 68.6 67.3 72.0 71.6 60.4 70.2 71.6 72.9 72.4 72.6 71.5 73.1 72.0 73.0
40.3 35.0 38.0 37.2 30.5 31.5 31.4 32.7 28.1 28.4 29.7 29.8 2 8.4 27.1 27.6 27.4 28.5 26.9 28.0 27.0
2.5
1.3
1.5
0.9
5.9
6.5
5.3
3.3
4.9
4.5
3.9
3.2
3.5
4.1
3.3
3.7
1.4
1.6
2.5
3.2
4.3
3.5
0.9
1.8
2.6
2.3
1.8
2.0
4.2
3.1
1.8
2.2
5.1
2.3
.19
2.0
4.9
3.6
3.5
1.7
Number of banks in group
17
15
11
7 57 56 60
16
25
24
31
51
70
55
57 63 120 129 128 128
a Rations 1 to 9 are computed from the average figures of condition reports and from the total figures of section one of the two semi-annua earnings reports; ratios
10 to 17 are taken from section one of the two semi-annual earnings reports: ratios 18 and 19 are taken from items 5(s and 5(b) of section two and item 1 of section one
of the two semi-annual earnings reports.
S Capital, surplus, and undivided profits. c Capital, surplus, undivided profits deposits, borrowed money, and notes in circulation.
Representative Green on Work of Joint Committee on
Internal Revenue Taxation-Not Concerned With
Rates-Created to Clarify, Consolidate
and Revise Law.
Announcement that the Joint Congressional Committee
on Internal Revenue Taxation will not be able to complete
Its task of simplifying, consolidating and otherwise revising
the internal revenue law until next year, was made by Representative Green, its Chairman, on July 4. According to
the "United States Daily," which in its account of what he
had to say, stated:
•
"I am gratified that the Treasury has closed this year with a substantia
surplus and I am confident that there will be another surplus, though dim
ished from the present one, at the end of the fiscal year which began July 1.'
The same paper stated that on July 1 the Advisory Committee of the Joint Congressional Committee on Internal
Revenue Taxation held its third meeting in the offices of
the House Committee on Ways and Means. It was called
together by Representative Green. It added:
The last meeting of the Advisory Committee was held in New York
City on June 9. The Advisory Committee consists of Charles D. Hamel,
of Washington. D. C., Chairman: Dr. T. S. Adams, of New Haven, Conn.,
expert for the Treasury Department; Dr. Thomas Walker Page, Institute
of Economics, Washington, D. C.; George 0. May, New York City, acHe said the Joint Committee will be called together at Washington countant; George E. Holmes, New York City, attorney; Arthur A. Dalianapproximately two weeks or ten days before Oct. 31, when the Ways and tine, New York City, attorney, and E. H. McDermott, Chicago; SecreMeans Committee will begin its pre-Congress session to consider tax rates. tary of the Advisory Committee and assistant counsel to the Joint Com"The work of the Joint Committee," Chairman Green pointed out, "has mittee on internal revenue taxation.
nothing to do with the fixing of rates. It was created with a view to clarifyThe Under Secretary of the Treasury, Ogden Mills, the Assistant to the
ing,simplifying, consolidating, and revising generally the text of the internal Treasury, E. C. Alvord, and others attended the conference.
revenue law, but it is not taking up the matter of rates. The rate question
•
Is one for the Ways and Means Committee.
"Whatever legislation is reported to the House when Congress convenes Statistics of Corporation and Individual Income Tax
Advisory
Committee will report on the
will be embodied in one bill. The
Returns for 1925-Those with Incomes of $1,000,000
problems that have been submitted to its members for their views, the
Number'207 Compared with 75 in 1924.
revision committee of our own experts and other personnel will assemble
The Bureau of Internal Revnue made public on June 27
the results of their work on which they have been engaged since the adjournment of the 69th Congress last March, and the Ways and Means statistics of income compiled from the income tax returns
Committee when it meets Oct. 31 will have before it the concrete results
1925, from
so far of these labors. The Advisory Committee, consisting of lawyers, of individuals, corporations and partnerships for
accountants, and other experts outside the Government service, was the capital stock tax returns filed for the fiscal year ended
created so that the broadest possible vision could be assured the public in June 30 1926, and from the estate tax returns filed from
the treatment of these important matters. The Advisory Committee is
an elaboration of the plan we carried out when we formulated the existing Jan. 1 to Dec. 31 1926 inclusive. Individual income tax
revenue law. It has held three meetings. At its third meeting on July returns, in practically all cases, are for the calendar year
1, we went over the whole question of the internal revenue law and dis- ended Dec.
31 1925. A relatively small number of corcussed some of its problems and completities during our all-day session.
There is no statement to make about the meeting because its work is not poration returns and a negligible number of individual returns
final. Its activity is that of co-operating with the Joint Committee in were filed for the fiscal years ended within the period July 1
the consideration of the work we have before us under the responsibility
1925 to June 30 1926, says the Bureau, and these returns
of re-writing the revenue law.
"The Joint Committee will not be able to finish its work this year. It are tabulated with the calendar year returns. With regard
Will have to go on next year, provided, of course, the new Seventieth to the returns the Bureau says:
Congress authorizes its continuance, which I assume will be done. But
Individual and Corporation Income Tax Returns.
the Joint Committee, although it cannot complete its task this year, will
The number of returns of individuals filed was 4,171,051, the aggregate
have some report to make when it meets in October and the results of its
work will be before the Ways and Means Committee for its consideration net income 521,894,576.403, and the net tax $734,555,183. As compared
in time for notice before Congress convenes. The Joint Committee will with the returns filed for the calendar year 1924, the returns for 1925
show a decrease of 3,198,747. or 43.40%. also a decrease in total net income
report to both Houses in December.
"The Ways and Means Committee will determine what if any legislation amounting to $3,761.577,051, or 14.66%, but an increase of 530,289.793,
is necessary as to rates of taxation. If it adopts a new tax rate program or 4.30%, in the total tax. The average net income is 55,249.16, the
and if it reports revisions in the textual language and arrangement of the average amount of tax 2176.11, and the average tax rate 3.35%. For
present revenue law, both propositions will be incorporated into a single the preceding year the average net income was $3,481.26, the average
revenue measure when submitted to the House. Just what legislation amount of tax was 595.56, and the average tax rate 2.74%•
In comparing the number of individual income tax returns and the
as to rates may be recommended then it is too early now to forecast. As
income reported therein for 1925 and 1924, it should be noted that thin
to that. I have nothing to add to statements, I have already made.
180
-
THE CHRONICLE
provisions concerning individuals required to file returns are so revised
In the Revenue Act,of 1926 that any individual whose net income ofr the
taxable year is less than his personal exemption as revised in that Act
Is not required to file a return unless his aggregate gross Income for the
taxable year amounts to $5,000 or more.
The number of coporations filing income tax returns was 430,072, of
which 252:234 rettorted net' income amounting to 39.583.683.697 and
ineomn tax of $1,170.231:206. For the calendar year 1924 the number of
corporation returns was 417.421, of which 236.389 reported net income
totalling $7,586,652,292 and tax aggregating 3881.549,546.
Inty_viiiiigUncorne Tax Returns.
The proportion of the pophlation filing returns was 3.60%. For the
preceding year the proportion filing returns was 6.56% •
Regarding the statistics presented in the report, we quote
the following from the New York "Times":
Distribution by Classes.
•
The distribution by number of the returns of individual income tax
payers by class in 1925 was:
% of
Classes—
Number.
Total.
Under $1.000
98,178
2.35
$1.000 to 52,000
1 071,992
25.70
2,000 to
3,000
842,528
20.20
3,000 to
5.000
1,327.683
31.83
5,000 to
10,000
503,652
12.08
10,000 to 25,000
236.779
5.68
25,000 to 50.000
59.721
1.43
50,000 to 100,000
20.958
0.50
100,000 to 150.000
4,759
0.115
150,000 to 300,000
3,223
0.077
300,000 to 500.000
892
0.022
500.000 to 1,000,000
479
0.011
1.000,000 and over
207
0.005
Total
4 171,051
100.000
The amount of net income of individuals was distributed by income
classes as follows:
% of
Clcss—
Amount.
Total.
Under $1,000
$58,305.538
0.27
$1.000 to • $2.000
1,774.601,508
8.11
2,000 to
3.000
2,047.969,883
9.35
3,000 to
5,000
5,236,003,283
23.91
10,000
5,000 to
3.463,852,012
15.82
10,000 to
25.000
3,544,898,379
16.19
25,000 to
50,000
2.032,239,284
9.28
50,000 to 100,000
1,418,948,285
6.48
100,000 to 150.000
572,859,982
2.62
150,000 to 300,000
655,300,217
2.99
300,000 to 500.000
339,773,657
1.55
500.000 to 1,000,000
327.367.523
1.50
51,000,000 and over
422,456,852
1.93
Total
521.894,576,403
100.00
The distribution of the net tax of individual income taxpayers by income
classes for 1925 was:
% of
Classes—
Amount.
Total.
Under $1,000
$68,557
0.01
$1,000 to $2,000
1,704,087
0.23
2,000 to
3,000
3.809,422
.0.52
3,000 to
5,000
8,326,214
1.13
10,000
5.000 to
10,149,177
2.61
10,000 to
25.000
74,171,952
10.10
25,000 to 50,000
120.688.692
16.43
50,000 to 100,000
147,842,180
20.13
100,000 to 150,000
79,471.792
10.82
150,000 to 300.000
103,058,819
14.03
300.000 to 500,000
55,721,982
7.58
500,000 to 1.000,000
53,674,188
7.31
1,000,000 and over
66,867.521
9.10
Total
$734,555,183
100.00
It is noted that of the 207 taxpayers in the United States
who each reported net income in excess of $1,000,000 for the
calendar year 1925, no fewer than 96 made their returns
from New York State. The "Times" account of the returns
further observes:
In 1924 there were only 75 in the entire country who reported in the
million-dollar class, and of these 39 were from New York.
The large increase in the number of personal incomes of more than
$1,000,000 and the fact that the gross income earned by corporations in
1925 reached the huge total of $113.692,083.216 were outstanding features
of the statistics. Both figures are new records.
In 1916. the year before the heavy war taxes became applicable, personal
incomes of more than $1.000.000 totaled 206. They then fell off rapidly
to a minimum of 21 in 1921. Prior to 1925 the best record for gross incomes
of corporations was $97,457,479.446 In 1923, and the next best was $97,158.996,625 in 1924.
Effect of Surtax Reduction.
Treasury officials contend that the big increase in the number of large
personal net incomes reported for tax purposes was due In no small measure
to the fact that the maximum surtax on these incomee; was reduced in the
revenue law of 1926 to 20% and other high surtax rates adjusted. These
rate reductions had been foreshadowed in 1925 and were made applicable
to incomes of 1925, on which taxes were paid in 1926. The high degree of
prosperity, however, as indicated by corporate incomes, and the speculative
operations in the stock market which accompanied the great strides taken
by business were factors of major importance in the situation developed.
The statistics show that 50.87%. or $236.538,835, of the total income
reported by the 207 persons in the $1,000.000 income class came from
capital net gain from sale of assets held for more than two years. Other
sources of income reported by these taxpayers were: Wages and salaries.
$7.807.217; business, $1,836,940: partnerships, $28.134.880: profits from
sale of real estate, stocks, bonds, dtc., other than profits reported as capital
net gain, $27,419.906; rents and royalties, $4,570,772; interest and investment income. $17,378,351; interest on Government obligations not wholly
exempt from tax. $436.562; dividends, $137,604,306, and fiduciary, $3,274.967.
So many new faces appeared in the $1.000,000 net income class of 1925
that it is more difficult to identify the individuals. The revenue bureau
makes public the statistics, but not the names.
Two persons reported incomes of more than $5.000.000 from New York.
It Is reasonably certain that one of these was John D. Rockefeller, Jr.,
George F. Baker may have been the other. Two incomes in the same
class were reported from Michigan, one from Pennsylvania, one from
Illinois and one from Oklahoma. It is believed here that Henry Ford and
Edsel Ford are the Michigan taxpayers and that the Pennsylvania income Is
that of Andrew W. Mellon, Secretary of the Treasury.
[voL. 125.
Distribution of Big Incomes.
The 207 persons who reported net taxable income of more than 111,000,000
for 1925 were distributed as follows:
More than 35,000.000—New York 2, Michigan 2, Pennsylvania 1.
Illinois 1, Oklahoma 1; total 7.
From $4.000.000 to 35,000,000—New York 6. Michigan 1, Pennsylvania
1, Illinois 1: total 9.
From $3.000,000 to $4,000.000--New York 8, Michigan 1, Pennsylvania
1, Illinois 1, Missouri 1, Ohio I. California 1, Wisconsin 1; total 15.
From $2.000.000 to 33,000.000—New York 12, Michigan 4, Pennsylvania
2, Illinois 2. Massachusetts 2. Missouri 2, New Jersey 1, Ohio 1, Oklahoma
1, Florida 1, California 1: total 29.
From 31,500.000 to 32.000.000—New York 17,Pennsylvania 6,Illbmis 4,
Massachusetts 4, Ohio, 4, Maryland 2, California 2, Connecticut 1, Michigan 1, Florida 1, Indiana 1; total 43.
From $1,000,000 to 31.500.000—New York 51, Pennsylvania 17, Massachusetts 10, Illinois 7, Michigan 4, New Jersey 4, Ohio 2, California 2,
Connecticut 1. District of Columbia 1, Florida 1, Indiana 1, Iowa 1.
Missouri 1, Nebraska 1; total 104.
The Figures for 1924.
A better idea of the great increase in net incomes of more than $1,000,000
reported is given by a comparison of the above figures with those of 1924,
when the incomes of more than $1,000010 were distributed as follows:
More than 35,000,000—Michigan 2, New York 1; total 3.
From $44,000,000 to $5,000,000—New York 1. New Jersey 1. Pennsylvania 1; total 3.
From $3.000.000 to $4,000.000—New York 2, California 1, Pennsylvavia 1; total 4.
From $2,000,000 to $3,000.000—New York 9, Illinois 2, Michigan 1,
Ohio 1, Pennsylvania 1, Wisconsin 1; total 15.
From $1,500,000 to $2,000.000—New York 5, Pennsylvania 3, Massachusetts 2, Michigan 1, California 1, Ohio 1; total 13.
From $1,000,000 to 31,500,000—New York 21, Illinois 5, Ohio 5, New
Jersey 2, California 1, Maryland 1, Pennsylvania 1, Rhode Island 1; total 37.
The net income enjoyed by the 207 in the million-dollar class totaled
$422,456,852. On this amount, after certain allowable deductions, they
paid $66,867,521 In income tax, the average rate of tax being 15.83%.
The seventy-five who reported incomes of more than $1,000.000 for 1924
had total net income of $155.974.475 on which they paid a tax of $47.207.203. the average tax rate being 30.27%.
All the incomes of more than $5,000,000 reported for 1925 were turned
in by men or were joint returns of husband and wife. The nine reports of
income of from $4,000,000 to 35.000.000 were joint returns.
From $2,000,000 to $3.000,000—Twelve persons, with total net income
of $28,568,813 and net tax of $4,305,826.
From $33,000,000 to $4,000.000—Eight persons, with total net income of
$26,970,674 and net tax of $4.400,132.
From $4,000,000 to 35,000,000—Six persons, net tax of $4,274.211.
Incomes of $5,000,000 and more—Two persons, with total net income of
$22,006,845 and net tax of $3,928,008.
The number of persons reporting net incomes of $1,000.000 or more since
1914 follow: Sixty in 1914, 120 in 1915. 206 in 1916, 141 in 1917,67 in 1918,
65 in 1919, 33 in 1920, 21 in 1921, 67 in 1922, 74 In 1923, 75 in 1924 and
207 in 1925.
For the entire country the number of returns of individuals for 1925.
payable in 1926, was 4,171,051. The aggregate net income was $21,894.576,403 and the net tax $734.555.183. As compared with the returns filed
for 1924, the returns for 1925 show a decrease of $3,198,737, or 43.40%.
due to exemptions in the new tax law; also a decrease in total net income
amounting to $376,577,051, or 14.66%, but an increase of $30,289,793, or
4.30% in the total tax.
The average net income for 1925 was $5,249.16, the average amount of
tax $176.11, and the average tax rate 3.35%. For the preceding year the
average net income was $3.481.26. the average amount of tax $95.56, and
the average tax rate 2.74%.
The number of corporations filing income tax returns in 1925 was 430.072,
of which 252,334 reported net income amounting to $9,583,683,697 and
income tax of $1,170,331,206. For the calendar year 1924 the number of
corporation returns was 417.421, of which 236,389 reported net income
totaling $7,586,292 and tax aggregating $881,549,546.
The number of individual returns for New York City were: Bronx 32.390.
Kings (Brooklyn) 122.852, Manhattan 342,531. Queens 24,820 and Richmond 3,633; total 526.126.
Historical Comparison for New York.
An historical comparison of corporation returns from New York State
follows:
Year— Gross Income.
Net Income.
Year— Cross Income.
Net Income.
1916_ __ _$8,300.137,671 $2,274,661,422 1921_ ___15,668,883,094 1,136,363,439
1917____15.974,590,5l2 2,201,153,456 1922_ _ _.18,557.282,809 1,752,190,868
1918._15.945,819,327 2.153.317,770 1023_ _ _22,735,983,853 2,156,929,895
1919_ _ _18,556,719,065 2,392,486,064 1924____24,099.803.322 2,096,541,720
1920_ _ __22.086,479,694 1,958,629,723 1925__ _ _28,825,904,969 2,598,418,524
On these returns the income tax for the various years was: 1916. 344,464.771; 1917. $105625,319; 1918, $171,758,980: 1919, $196,187,661; 1920.
$167,141,669; 1921. $100,847,002; 1922, $199,683,373; 1923, $248,108,254;
1924, $246,109,308; 1925. $322,979,149.
It is pointed out by the Washington correspondent of the
New York "Journal of Commerce" that the New York State
banking institutions, insurance companies and related concerns in 1925 paid the United States Treasury more than
one-third of the total amount of income tax derived from
corporations in this class over the entire country,it is revealed
in the report of the Internal Revenue Bureau made public
this week. That paper says:
Of the 5179.948.691 collected from financial corporations of the United
States, the State, including New York City, paid $57,386,842 income tax
for the calendar year 1925. The New York net income for the
Period
aggregated $474.416.715, which amount Is more than one-third of the total
profits of $1,523.823.240 reported by financial concerns of the nation.
Of the $8.503,186,306 reported as gross Income for banks and other
financial institutions of the country In 1925. New York State had 32,511,042,047. or more than one-fourth of the entire amount.
New York's Stability.
New York corporations in this class making returns that year numbered
25,458, while the total number for the country aggregated 115,947. Of
the latter only 73,246 corporations could show net income, and here again
the stability of New York's financial concerns is emphasized by the comparative ratio to the balance of the country in respect to corporations
reporting deficits, there being 9,265 New York State corporations failing to
show net income, thus the 16.193 reporting earnings was far above the
JULY 9 1927.]
THE CHRONICLE
181
the
or what it is wise to do as a government when It comes to dealing with
problems which oil, power and coal present.
Government
the
which
to
extent
I venture the opinion, however, that the
those who own
shall take part in these matters will depend primarily upon
and controlsthese industries.
Assowill depend
Senator Borah Before International Advertising
Government dominance or control or government ownership
those who own
very largely, if not wholly, upon the action and conduct of
ciation Urges Building Up of Home Markets Rather
or are in control of these things.
the people are
than Aiding Europe—Says Under Present PoliIf waste continues and reckless exploitation prevails, if
have no alternative; it
cies We are Helping War-Makers
charged unreasonable prices, the Government will
will have to go as far as is necessary.
Through Foreign Loans.
to do what
It is a sound rule that the Government shall not undertake
this sound rule
the
addressing
in
of
Idaho,
Borah,
E.
William
Senator
the citizen can do equally well or better for himself. But
disregard when individuals disregard the welfare
International Advertising Association in convention at Den- the Government must
of the nation or the public weal.
in directing attenver on June 29, expressed himself as "more interested in
It is a pleasant pastime with those who are Interested
and politicians putting
working out a policy of conservation which will dedicate our tion away from their own acts to talk of demagogues
business. But if business does not Justify or necessitate.
great natural wealth to the happiness of our own people and the government inthe
part of the government, all the demagogues and poliinterference upon
institutions
own
of
or break down sound
our
foundation
ing
the
thus strengthen
ticians, both real and imaginary, could not modify
. .
than I am in trying to Wild up European markets under the governmental and business principles.us.
that we are in effect demoralizing
A great banker. Mr. Lamont. tells
policies now obtaining." Senator Borah declared that
our loans upon them.
foreign municipalities and governments by forcing
continues to cancel
There
"there is enough, more than enough, to do at home.
They, perhaps, can stand it so long as our Government
is more honest work for every dollar in the United States. the public debt.
vaults, but that condition
The gold of the world, it is true, is in our
There are markets to be built up here of far more value to might be modified if we were buying not only rubber, but oil and lumber
the American farmer than the fugitive markets which we from abroad.
y, as this conEurope was once as rich in natural wealth, comparativel
are hunting abroad. There is room for a constructive proin grinding poverty and
tinent. To-night she has her countless millions
gram here which will serve the cause of peace and serve each government seems to be torn with suspicion and fear and dread lest
northern sky lowers upon a continent
humanity. There is a home job to do and prudence and the ominous cloud which torments the discarded
civilization.
wrecked and
a
wake
its
in
leaves
and
Senof
patriotism alike urge us to the task." In its account
more, because of economic
And these things are so, my friends, infinitely
ator Borah's speech, the Denver "Rocky Mountain News" conditions than of political conditions.
ordinary laws of prudence
It is not in fear or fright but in obedience to the
quoted him as saying:
and build up our policies
and common sense that we should formulate
the Lord our God
Plays Improvidence.
touching our great wealth. It is a goodly land which
inheritance intact.
But the improvident manner in which the natural wealth of the country bath given us and we cannot begin too soon to keep the
is the basis of
If we are interested in preparedness, economic strength
is being gorged by individuals, wasted and exhausted, should no longer
economic
remain a matter of unconcern to the people of this country," he continued, preparedness. If we are interested in democratic institutions, of conprerequisites
referring to the recent statement of prominent oil producers in Washington institutions, economic health is one of the essential
the spread of
"that there was an orgy of production, that many oil fields were being dam- tented and devoted citizenship. If we are disturbed over
else will.
aged or ruined through careless or hasty drilling operations, and revealed communism, economic Justice will stop its growth as nothing
the proposiin
beyond peradventure that one of nature's most generous donations to the
Every conceivable element of national power is involved
service and comfort and luxury of the people is being literally shamelessly tion of preserving our great natural wealth for the benefit and use and comwasted in a manner without precedent in all past history."
fort of all our people.
If the waste and exhaustion of our natural wealth simply interrupted the
I said a few moments ago we had, as a people, contributed some V.000,gathering of wealth by the few immediately engaged that would be un- 000.000 to the European countries since the war. Yes, we canceled some
enabling
and
people
whole
a
fortunate enough, but it embarrasses and impverishes
$7,000,000,000 due to us and did it largely under the plea of
puts the people and the government alike in jeopardy. The problem is in Europe to get back, to assist in reconstruction.
have some
every sense of national import and of the utmost public concern.
A New York financier tells us a few days ago that we now
it is
Another event is the devastating flood in the Mississippi Valley. Some $12,000,000,000 in the way of private foreign loans and that most of
as a busionly
not
made
been
have
600.000 or 700,000 people have been flooded and left destitute.
In Europe. These loans, it is claimed,
and rehabilitate
ness proposition, but also to enable Europe to rebuild
Greatest Calamity.
industries.
her war-torn territories and to reconstruct her ruined
vestock,
been
submerged—li
has
region
will-populated
A great rich,
Helping War-Makers.
homes, crops, the earnings and savings of a lifetime carried on down to the
debts and loans wil
sea. The damage will amount to some $400.000.000.
Under the present policies of Eurore, cancellation of
seem more in need of
and
Mr. Hoover, who has surveyed the scene of desolation and misery,
serve but little, if at all, in reconstruction—they
program.
whose services in the matter are beyond praise, regards it as the greatest great military establishments and a strengthening of the war
war-makers of Europe.
peace-time calamity in the history of our country.
We are not helping the people of Europe but the
Here again is waste, waste of the nation's manhood and womanhood, The rresent policies do not mean reace, do not mean reconstruction.
in it every element
waste of everything which goes to make up the prestige and strength and
The history of Europe during the last 30 days has
durability of our country.
of strife which preceded the years before the war.
he is on the way
Much of it is that kind of waste, in a large measure, which can never be
The Premier of Italy in a public speech declares that
and
repaired. Human suffering, discouragement, breaking up the plane of a to creating an army of 5,000.000 men, to the building of a great navy
What
lifetime, are not easily repaired. The disaster carries not only its warning to the reconstruction of an air force second to none in the world.
but its command.
are these things for?
the assassination of the
Need National Policy.
The break between Great Britain and Russia,
Europe
Poland, the executions in Russia. have made
I might with equal propriety and effect refer to timber, coal and power. Russian Minister in
if I may use the terms—an armed eamp. Last
In the interest of time these will suffice. But any one who will go far mentally and spiritually,
public
a
delivered
Premier of France, at Luneville.
into the situation will readily conclude that we. as a people, as a nation, Sunday a week, the
and intolerance. Tearing open old wounds,
bitterness
in
steeped
address
permanent
and
intelligent
an
out
working
to
our
attention
should turn
of
of fear and suspicion and hate, call for a policy
national progress, a national policy to conserve for the benefit and use of all summoning the spirits
with the seeds of war.
the most marvelous natural wealth which nature's God ever gave into the force and fallow the earth
organized
of
piece
a flimsy
In the face of such speeches. Locarno becomes
keeping of a people to stop this improvident and ultimate impoverishing
in an atmosphereof dissension and strife.
waste, and by economic use add to nature's wealth and the people's comfort. hypocrisy. The league convenes
n nor aid for peace nor
reconstructio
of
I see neither the advancement
Whether it is oil or rivers, or water power, or soil, the same pressing, comunder such circumstances,
service to humanity in the cancellation of debts
manding inquiry presses itself upon us.
money to Europe. I see the very oppoIt is my observation and my belief that these great problems never find or in loaning millions of American
things.
these
of
site
conis
nation
of
and
purpose
an
entire
attention
until
the
solution
a wise
centrated upon them. Casual and incidental consideration leads to temfor
porary and makeshift results.
Views of Thomas W. Lamont on Publicity
"The relation which the Government should sustain to those matters,"
Corporations.
Senator Borah said, "presents a difficult problem. For myself I think
way of
In reviewing what has been accomplished in the
that the poorest business man which this country has yet produced is the
Government. The most extravagant and demoralizing form of government corporate publicity, Thomas W. Lamont of J, P. Morgan &
with which we are throughout history familiar is a bureaucracy.
American business men must realize
Some bureaucracy we must have, some we shall always have. but in the Co., observes that "our
And
are
yet
the
here—what
is
much
problem
of still greater publicity than
how
necessity,
name of humanity,
the benefit, even the
the proper limits of the functions and agency of government. To what exists to-day, as to the affairs of those corporations which
departments of human affairs shall government authority extend, and how
they handle, and the shares of which are owned by the great
far and in what way?
The oil producers, who are among the ablest and boldest of our business American investment public." Mr. Lamont's views appear
men, have appeared and asked the Government to protect them against
in the July number of "Industrial Management—The Engithemselves, to stop their wasting the nation's wealth, to exercise its influneering Magazine," and his paper was prepared at the reence on behalf of sanity.
The power people have not yet appeared, but they are in some respects quest of the Editor of that paper—John R. Dunlap. In
overdue.
what he has to say on the subject, Mr. Lamont alludes to
The coal men have in a way appeared.
Our virgin forests are already gone.
the contentions of Professor Ripley of Harvard University
The public lands are practically exhausted.
in the matter of publicity for industrial and public utility
The pioneer, one of the finest and noblest factors in nation building,
corporations. While conceding that on the whole Professor
is quietly passing out.
We are, of sheer necessity, turned back upon ourselves—circumstances Ripley's utterances "have had the distinct advantage of
force the hour of retrospection. We must take stock. The greatest doarousing much illuminating discussion on the whole quesmestic problem since the Civil War is: What shall the Government do
purpose?
tion," Mr. Lamont says, however, that no one "is wise
its
shall
it
how
exercise
and
Public interest demands that this waste shall cease. Justice to the enough to lay down a general.and sweeping rule that should
people demands that unjust prices and exploitation shall be prevented.
apply to all industrial corporations." "Pitiless publicity
Common sense and the most ordinary tenets of humanity insist that our
our
of
millions
countrymen.
to
Is
menace
no
be
shall
a
longer
hardly the sort of publicity that should be generally aprivers
While the course and the duty of the Government seem reasonably plain plied," says Mr. Lamont, who adds that "the publicity should
course
our
in such matters as waterways, it is not so easy to determine
was
proportion for the country at large. The total deficit for the country
York
reported by corporations of this class at $456.219,056. while New
financial concerns had a deficit of $129.563.017.
182
THE CHRONICLE
be adequate and not misleading." Among other things
Mr.
Lamont comments on what has been said about banker
control and "domination" in corporate affairs, and this he
refers to as greatly exaggerated. A symposium of
comment
follows Mr. Lamont's paper, this being led
by Charles
Evans Hughes and Nathan L. Miller, former Govern
ors of
New York; E. H. H. Simmons is also among those
commenting on what Mr. Lamont has to say. In part Mr.
Lamont's
discussion follows:
[VOL. 125.
wild-cat banking that led to the successive
panics of 1837 and 1857. With,
the signing of the National Banking Act, under
the urgency of Secretary
Salmon P. Chase of the Treasury, came the instituti
on of periodic reports
to the Comptroller of the Currency, which
had to be made by all the banks
within the national system. So far as that
system is now concerned, supplemented and succeeded by the Federal
Reserve System, the published reports are frequent, adequate and complete
. The banking regulations of
those States, wherein State institutions which
do not happen to be members of the Federal Reserve System are chartered
, undoubtedly in certain
instances leave something to he desired. But on
the whole it may be fairly
said that the stockholders of the country's
banks are periodically furnished
with full information.
The Editor of "Industrial Management—The Engineer
ing Magazine," has
Industrial and Utility Field.
asked me to set down sane of the reasons why
increased publicity as to
We come next and finally, then, to the
the affairs of industrial corporations would
question of industrial and public
at the present time be advan- utility corporations.
It
is in this field that the question of publicity
tageous to such corporations and to the business
has
world in general.
of late been most vigorously debated.
In considering the business situation
Professor William Z. Ripley, of
we must keep in mind that the IIarvard, a high-min
ded scholar whom many of us are proud
world has been in an extraordinary state
to call friend,
of flux. It is axiomatic to say has taken up the
cudgel in behalf of more complete corporat
that the Great War has brought vast alterations
e publicity for
in every field—political, industries and
utilities, and also against certain practices
economic, financial, sociological. We see the map
which
he has
of Europe altered almost deemed detrimentat
in general to the stockholders' interests.
over night. We see old races submerged, new nations
I shall not
created. We gaze attempt to argue in
detail Professor Ripley's various theses.
upon our own country—before the war a people borrowin
I might
g largely from disagree with him on some
of them; on many other I should undoubte
European investors—now become the lender and storehou
dly
se of credit for a agree. Certainly I should
say on the whole that his utterances have had
great part of the world. . . .
the
distinct advantage of arousing much illumina
ting
discussio
n
on
the
whole
A New Europe to Deal With.
question. No one, however, is wise enough
to lay down a general and
It is true that Europe is happily becoming more unified.
The movement sweeping rule that should apply to all industrial corporations. For into break down the high tariff barriers, built up by the
increase of national- stance, "pitiless publicity" is hardly the sort of publicity that should
be
ism in almost every European country after the war,
is already well under generally applied. The publicity should be adequate and not misleadi
ng;
way. It is not inconceivable that Europe may some
day become a great but if one means by "pitiless" that it is to be hostile one is almost
sure
to
region of free trade, as the United States is within its own
borders. Such do harm to the corporation and, therefore, to the interests of its
stocka development may take a long time in coming; on the other
hand it may holders.
move much more swiftly than we imagine. If it does
What it Adequate Information?
we shall be able
within a short span of years to witness a Europe
What do we mean by adequate? What I mean
restored, industrious,
is periodical information
stable, peaceful, far stronger in every way than it has
ever been in the sufficient to give the intelligent stockholder a fair
picture of the status of
past ; with armaments vastly reduced, with swords beaten
into plowshares, his company and of its general progress in profit or
in loss. Now, the
and with a future bright with promise.
great majority of the stockholders of industrial
corporations won't be bothThat is the sort of Europe that the American man
of affairs must look ered to read annual reports. That fact, however,
is no excuse for the corforward to and prepare himself to do business with. Off
hand, one might poration to omit to give its owners proper information
as to their property.
say that competition from a Europe so unified
would be much more Over a quarter of a century ago the United States
Steel
Corporation, formed
formidable than ever before. Yet such competit
ion from a world across largely through the efforts of the late Mr.
Morgan, adopted with his
the sea, well ordered and at peace, is competit
ion that American can well approval the policy of giving its stockholders
as much as, or more informaafford to welcome rather than fear. Then, too, the
miracles of science and tion about its current operations than was required
of the railroads. There
invention, being performed day by day under our very
eyes, must inevitably is no doubt that because of his previous experience
as a banker for railchange our outlook and affect the scheme of things
which our business man roads Mr. Morgan realized the great value
of
corporat
lay out for the future. What does it mean
e publicity ; value to
in the way of more ready under- the banker, to the stockholder, to the
public, and therefore of inestimable
standing and of better business when an
American merchant in his office value to the railroad itself. That this
conception had to do with the Steel
in Broad Street can pick up his telephone
and within ten minutes can have Corporation's adoption of a clear and
frank policy of publicity goes withsolved a complex situation arising with
his correspondent in London? The out saying. How many times
since 1903, when the corporation's first
scientist rather pooh-poohs even this
astonishing phenomenan as but a annual report was published, has Judge
Gary, the wise head of the Steel
tiny bgeinning of what we shall see in
the way of applied science within a Corporation, made it clear that
this idea of adequate publicity was in the
few short years.
forefront
of his policies for the upbuilding of this vast and
How, then, is America to prepare itself
complex propfor these vast evolutions that erty.
have come in the last ten years? On
the whole, the American business
Only
a
month
or
two
ago,
"Forbes
Magazine," a well-known Journal of
man has conducted himself prudently and
justly, with great energy, with business, published an interview with Judge
Gary which contained the
considerable foresight and with marvelous
ingenuity and mechanical skill. following significant passages:
What more is there for him to do, you will
ask? First, of course, he must
"'Just one more question,' said the interviewer.
orientate himself to these new world developm
'In all your eighty
ents. He must realize that years of achievement, what in your opinion has
been your biggest and best
his outlooks cannot be kept parochial or even
national; they must be inter- job?'
national. Unless he realizes that fact and
leaves no stone unturned to
"Judge Gary considered the question carefully before
meet an altered world of affairs, he will not
replying. Then
succeed in maintaining America he said:
where she is in the scale of industry and producti
on.
"'Helping to introduce the present system of candid
publicity
into corBenefits in Greater Publicity.
poration affairs.'
Next (and now we come to our text), our
"'Of course, he said, 'I was only one of many.
American business men must
Nobody does anything
realize the benefit, even the necessity
, of still greater publicity than single-handed. It is only by co-operation that great human ends are
exists to-day, as to the affairs of those
corporations which they handle, and achieved. But I am very happy to-day to have had some part in that great
the shares of which are owned by the great
American investment public. change. The people'e business is being carried on; and the more they
Much has been said recently in the public
prints, some of it in praise, even do know about it, the better it will be for business. Big Business, like
more perhaps in criticism, on the question
of corporate publicity in the human life, cannot thrive properly in the dark.'"
United States. Suppose we review briefly
what has already been accomSome Results in United States Steel's Policy.
plished along this line, and then ask ourselves
how much further we must
So far as concerns this particular corporation, what
go.
has been the result?
Certainly this company's policy of open and detailed
Take first the railways. Of course, we all
publicity must have
know that to-day the reports borne some weight with
of these common carriares are uniform
the
United States Supreme Court when the latter
and complete, leaving little or exempted it frem
the verdict of dissolution, a verdict visited upon
nothing to be desired along that line. No railway
several
stockholder within the other great industrial
companies. The financial strength of the
United States has a right to complain of the inadequa
Steel
cy of Information fur- Corporation forges upward
year by year; the earnings are stable; and Its
nished to him not only in the annual reports but
in the monthly reports of common stock is distribut
ed among more than 140,000 investors, includin
earnings. For years we have read much argument
g
as to whether the rate- 43,000 of its own employee
s. Its credit is of the best. "Steel Common
regulating powers of the Inter-State Commerce
"
Commission have been is a so-called leader upon
the Stock Exchange. There is small chance for
wisely exercised. Yet who shall say that publicity
in accounting (begun the so-called insider to
profit by purchase or Bale of its shares,
under the supervision of the Inter-State Commerce
based on
Commission in 1887 and advance knowledge of
unusual gains or recessions in its business
made more effective by the provisions of the Hepburn
; because
Act of 1906) has the canpany's month to
month record of unfilled orders is open for
not been one of the most important factors in helping
the
our railroads reach world to see. Could
there be a more striking example of the extent
their present height of efficiency, financial stability
to
and good-will with which adequate publicity
has added value to the inherent strength of the
the public?
company's day-by-day management
of
producti
on and distribution?
Effect Upon Railway Development.
Developments in General Motors.
The effect of this publicity in accounting was hardly
apparent at first.
Of course, full publicity for industria
Our railroads in the 1880s and 1890s were experien
l corporations is a comparatively
cing severe growing new
thing. With the exception of the Steel Corporat
pains, pushing into the Western wilderness, supersed
ion which has for
ing the covered wagons years
taken the public into its confidence, and of the
of the prairie, and opening up new regions for the future
General Motors Cordevelopment of poration which later
our country. Under these circumstances, some
followed Steel's example, there are comparatively few
of the railroad financing in of
the large manufacturers who have deemed it
those days naturally inclined to be of
in the interest of their
a speculative nature. As the years sharehold
ers to give such wide publicity to their operation
went on, however, the cumulative effects
s. The General
of the monthly and yearly comMotors Corporation, when it was first formed, was
pilations of railroad operations, the gatherin
not the great organig of traffic and loading sta- zation
that it is to-day. Several other motor companies
tistics, the analyses of costs and earnings
were
these
; all
close behind
began to bear fruit. in financial
The roads became more efficiently managed
strength and the Ford Company was far In the
lead. In 1920
, and bankers and investors the present
management assumed control, a management imbued
were aided immeasurably in studying
the financial needs of the transpor- sane
with that
idea of corporate frankness that had been Mr. Morgan's
tation systems. Also, from the necessity of preparin
. Since then
g the data and bringing General
Motors' every operation has been explained to
it to light, those old-time railroad
its stockholders;
men learned much which they had never
through its quarterly statements of earnings and
known about their roads; they found
its monthly reports of
where they were efficient, where output
the public is fully informed as to its progress.
deficient. Who can doubt that this
Can it be a mere
has contributed to make a more stable coincide
nce that the company has increased its lead over
property and more consistent revenue
gainer; a property that canmands petitors,
most of Its comthat the amount of its gross sales now greatly
the approval of the region through which it
exceeds those of its
runs and the confidence of in- nearest
competitor? Almost sixty thousand investors
vestors ; a confidence which spells
own its shares, puritself in amlost constantly lowered costs
chase its motor cars, and tell their friends of the pride
of the improvements which the transportation companie
they have in being
s must undertake stockhol
ders of this enlightened company, of the
through the sale of their obligations!
satisfaction they derive
In other words, full corporate pub- from
the possession
licity has helped enormously to build up our transport
ation systems, and has proved stimulus of its products. Corporate frankness has undoubtedly
distinctly enhanced their credit and
a
in industry's most highly competitive field.
their ability to borrow money more
And this is
the sort of stimulus that gradually pervades and
cheaply.
animates the entire organization of the corporation itself. Study by the
Publicity in Banking Practice.
organization rank and
file of the frequently published figures give the staff
Publicity in institutional banking really
members a new and
began with the establishment enlightened conception
of their corporate employer's task and accomplishof the National Banking Act in 1863. Students
will recall well enough the ment; and stimulates in
them new ambition and determination to bring
JULY 9 1927.]
THE CHRONICLE
183
concern is the sort of a thing that you can lay out on paper and manage by
means of rules and formulas, through by-laws, stockholders' committees,
etc. There was never a more unsound idea. Investigate any successful
corporation to-day and find out what the real secret of its success has been!
Has it lain in its control of natural resources, in its perfection of equipment, in its patents? By no means! It has lain in the personality of the
management day by day. If the managers are men of prudence, imagination, industry and sobriety you will see a successful corporation. If they
are lacking in these qualities, the corporation, no matter how great Its
material resources, will be limping. President Sloan of the General Motors
Corporation, not long ago put his finder on this same point, namely, individuality in management. He pointed out, too, the disadvantage in a too
great diffusion of share ownership. It is a dangerous thing for a corporation to have its stock ownership become so scattered that the managers of
the corporation are but hired men, having little or no interest in the profits
of the corporation itself. Professor Ripley would himself be the first one
to acknowledge, though modestly, that in the great profession of teaching
which he, adorns, personality counts more than anything else. The great
educators of America have been the men who have impressed their pupils
not with a mass of information, but have given them stimulus to think for
themselves. For the school or college teacher it is far more important to
start in his pupil a fresh current of ideas than it i toe try to teach a
theorem or lesson. Just in the same way, if I may be permitted to compare the professions of teaching and of business, it is personality, individuality and ideas in business which lead to the heights. Balance sheets and
profit and loss accounts are important, but the first thing to inquire about
as to a corporation's business is the personnel of its management.
Business in the Open.
Eroceptions to Every Ride.
It was only a few years before his death that the late Mr. Morgan, emHaving laid stress upon the great advantage of corporate publicity in par- phasizing that tendency towards proper publi bnycctei isessnuietaoinetaoin
ticular Instances I am bound to add that there must be exceptions to every self encouraged, used a phrase to the effect that "hereafter business must
rule. Certainly it is not a policy about which one should be permitted to be done in glass pockets.' Mr. Morgan did no trnean that men of affairs
dogmatize. As I said a while ago, "pitiless publicity" may be unjust and should become vociferous as to their corporate enterprises. What he did
harmful to the very stockholder who it is supposed to protect. Fairness and mean was that the old days of secretiveness and the "public-be-damned"
clearness on the part of a corporation in presenting its affairs to the share- spirit in corporate management had gone by, never to return. He himself
holders and to the public are far more important than a mass of detail. For had set his face toward the new order of things and was in the van of the
the average corporation there should be comparatively little difficulty in movement which helped so greatly to establish American industry upon its
furnishing to its stockholders an annual statement showing in general the present extraordinarily Round and satisfactory basis.
assets and liabilities of the company, both liquid and fixed, and joining
with those an income account showing the volume of the total business, and
the net profit resulting therefrom. The statement should also, in arriving Mississippi Floods Steadily Receding—Farmers In
at such net profits, show the amount first set aside for depreciation, fixed
Desperate Plight in Many Sections—Secretary
charges, etc. For many corporations which now reveal only once a year a
true picture of their strength and the year's results it would be more adHoover Continues Relief Work.
vantageous to furnish, as do so many other industrial concerns like, for
The
floods
in the Mississippi Valley are definitely receding
Instance, the Steel Corporation, General Motors and General Electric, brief
quarterly statements indicating their progress. Yet it can be argued that in all parts of the inundated States. Flood waters, however,
such frequent reports in the case of a corporation whose business is sea- still cover many thousands of fertile acres and farmers in
sonal may possibly be misleading and to a small and uninformed stockholder
many cases are unable to begin crop-making. Many of
unnecessarily alarming.
Then, too, we must Certainly be fair in discriminating between the ordi- the farms which have re-appeared are covered with sand
nary small corporation, which may be simply an enlarged family affair or and are temporarily useless for the growing of crops. Starvpartnership in corporate form, and that corporation, which owing to its
size and need for public capital, lists its shares upon some one of the coun- ation threatens a multitude in the months that are to come,
try's stock exchanges and frankly seeks the public's confidence. As to such according to a special correspondent of the New York
latter corporations, I am urging the fullest publicity consistent with sound "Times." Writing from Little Rock, Ark., July 5, this
trade practice, on the ground not primarily of fairness to the stockholders
themselves (strong a factor as that is), but rather of profit and credit to correspondent adds:
Whether these facts are realized in the country at large is the question
the corporation itself as a going concern. I have pointed out certain of the
advantages accruing to those great corporations, the United States Steel asked by nearly everybody in the flood country. The impression seems
'Corporation and the General Motors Corporation, from their policies of general that the more than 600.000 sufferers in the greatest peace-time
publicity. I do not assume that every other large corporation is in a posi- disaster in history have been largely forgotten; that even flood control, so
tion to carry out to the limit similar policies. Nor am I unmindful of the live an issue a few weeks ago, may be relegated to second place if some
great success which many industrial corporations have attained without officials rrominent In public affairs have their way.
Yet the effects of the deluge are still here, and heartrending as was the
ever having pursued a policy of furnishing full information to their shareholders. Yet I still venture to urge the manifest and increasing advantages flood story when the crests of the Mississippi and its main tributaries were
at their peak, when every sundown meant more thousands of acres Inunaccruing from the pursuit of such policies.
dated, more homes lost and more thousands to feed, shelter and clothe.
Stockholders Are Not Managers.
it was not one whit less pathetic than is the story of the aftermath.
'
Without affecting in any way the argument for ample corporation pubSecretary Hoover returned to Washington from the flood
licity, I beg to add that there is no way to compel the stockholders to take
keen interest in his company unless he is disposed to do so. The average zone late last week and announced that twenty counties in
stockholder is not so disposed. One of the chief reasons why he puts his six states are still partially under water and present a "conmoney in the stock of a corporation, instead of lending it to some neightinuing problem." Some 1,300,000 acres have not yet
bor's enterprise, is that he believes that by so doing he is securing an
Investment to which he will be obliged to pay but little attention and for emerged from the flood, and the economic situation of such
which he is likely to find at any time a ready market. You can exhort that acreage will have to be determined as the waters clear, Mr.
stockholder about his duty to his company and you can get up patent plans
counties are in Louisiana, six
for special committees to represent him and his fellow stockholders. But Hoover said. Seven of these
and one in Kentucky.
Mississippi
four
in
Arkansas,
in
such schemes will never work. The average stockholder dose not want
to
have anything to do (and very properly so, too) with the active manage- Water is lingering also in parts of Missouri and Illinois.
ment of the company. It is unwise to try to force him to; and—provided
Altogether,said Secretary Hoover, 101 counties embracing
you have given him clear and full information—you might just as well
assume that he will continue to show faith in the company's management, 3,500,000 acres had their crops drowned out,of the 10,000,000
and take no part in its affairs as long as that faith seems to him to
be acres stricken by the flood. Eighty-one counties are now
justified by results.
about that "scientific management" which is a striking feature of Arneriean industry to-day.
Stock Exchange a Decided Factor.
There has been one other most important influence in this movement for
greater corporate publicity which I should certainly mention, and that is
the New York Stock Exchange. Under its present management, with Mr.
E. H. H. Simmons as President, it has been unremitting and insistent in
its efforts to promote the advance of corporate frankness; thus developing
and expanding the policy of its late President, Mr. Seymour Cromwell,
who was a real pioneer in this movement. In order for a corporatjon to
list its securities upon the New York Stock Exchange, it must submit to
the latter a mass of information regarding its affairs; and the requirements
of the Exchange have become more and more searching and rigid as the
years have passed. The listing applications are open to the inspection of
the public and oftentimes contain much more detailed information than is
disclosed in the company's regular reports. Furthermore, for many years
now the Stock Exchange has made it a requirement for listing that the
applicant corporation agree to publish at least once a year a statement of
its physical and financial condition, including an income account and a
balance sheet. I am informed that practically all of the 1,139 companies
with securities listed on the Stock Exchange publish annual reports. In
recent years the Stock Exchange, although not making it a formal requirement, has requested with repeated insistence that those companies for whose
securities it furnishes a market agree to publish quarterly statements of
earnings, and the Exchange authorities have been particularly successful in
persuading those companies, which are applying for the first time for a
listing of their securities, to comply with this policy.
"Banker-Control" Greatly Exaggerated.
A good deal, too, has been said about banker-control and "domination"
In corporate affairs. There may be some such thing, but I have seldom seen
It. My experience may perhaps be limited to the house of which I am
a
member. As to that I can testify that there is nothing that we seek more
carefully to avoid than getting in a position where we "control" or are supposed to "control" any company. In those few industry corporations with
which we have intimate relations our stock holdings constitute never more
than a limited minority interest. To such corporations we are glad, if we
are on the directorate, to express ourselves upon matters of general policy;
or to vouchsafe such counsel on fiscal or financial matters as may seem
desirable. But as to the day-by-day management of the companies we have
little or nothing to say and want to have less. The moment that a banker
begins to think that he knows how to run a railroad or industrial corporation, that moment marks a sad period for both himself and the corporation.
I am speaking now in general terms. To be sure, I have known instances
where certain bankers of unusual capacity practically gave up their own
businesses in order to take active charge of some corporate industry. That
is a different thing. What I mean to say is that the ordinary active banker
must stick to his last and not try to manage a business for which he lacks
both training and equipment.
Personality in Management.
Lastly, some of our critics of present-day methods in corporation practice, and some of those who have suggested radical changes, fail to realize
fully enough the part which personality plays in the management of every
successful corporation. Some of these critics seem to think that a business
largely normal, he continued, with rehabilitation work in
prospect of completion within from 30 to 60 days and with
enough funds on hand to carry on the work. The Red Cross,
is rebuilding at the present time some 10,000 homes destroyed by the flood, which they expect to have completed
by November.
Added to the crop damage, the Secretary asserted, are
the tax and mortgage liabilities which are causing serious
conditions among some people. The States are expected
to handle this problem, he said.
Secretary Hoover estimated that the funds and equipment
furnished by the Federal Government in the flood work
amounted to about $7,000,000, while the railroads have
rendered free services to the amount of $3,000,000.
Transatlantic Flight of Commander Richard E. Byrd.
Commander Richard E. Byrd, who in company with
Floyd Bennett flew by airplane a year ago to the North Pole,
completed a transatlantic flight on July 1 after a battle of
forty-two hours with fog and storm. In the monoplane
America, Commander Byrd, accompanied by Bert Acosta,
184
THE CHRONICLE
[vol.. 125.
Lieutenant George 0. Noville and Bunt Balchen, left achievement In mind and the fact that he has the Congressional medal, had
Roosevelt Field, New York, at 5.24 a. m. on June 29. On some weight in the determination of the honors which he should receive.
Sheldon Whitehouse, American Charge sd'Affaires; Captain White, the
July 1, out of gasoline and groping blindly through fog and naval
attache, and H. A. Gibbons, personal representative of Rodman
rain to find a safe haven, the plane descended (according to Wanamaker, were present at the ceremony.
In
congratulting
the commander of the America and his crew, M. PoinAssociated Press advices) in the sea at 2.20 a. m. French
care told them they had given a splendid example of discipline and patriotism
time (9.20 p. m. New York daylight time) about 200 yards In
thinking less of saving their lives when their ship dropped into the sea
from the beach at Ver-sur-Mer, on the coast of Normandy, than they had of saving the precious flag they were bringing to President
Doumergue
and the bag of mail. The French people considered that their
175 miles west of Paris. The American aviators made their
had been perfectly successful and that the landing had been accomway through the sea to shore on a pneumatic raft they were voyage
plished with precision and expertness under particularly difficult circumable to inflate just before their plane struck the water. They stances.
are reported as giving the hour of their descent into the sea
A flight to the South Pole is planned by Commander
as 3.30 a. m. July 1. The aviators arriv6d in Paris from Byrd. It was stated on July 6 that on the following day the
Caen at 12.28 p. m. July 2. From the Paris Associated Byrd party would for the first time since their arrival in
Press accounts July 2 we take the following:
France be temporarily separated, Lieutenant Balchen
On the eve of a triumphant entry into Paris, the airmen found rest last expected
to fly to Amsterdam to interview officials of the
night from their arduous voyage through fog, wind and rain in the Normandy town of Caen, 15 miles from where they came down on the sea when Fokker Co. regarding the south polar flight. He was to
their gasoline supply gave out after they had sought for hours to find go by plane from Le Bourget and expected to return to
Le Bourget flying field, the goal.
Paris by air before nightfall.
They retired disappointed at not having ended the flight at Paris.
yet
happy that they had been able to save the mall entrusted to them and their
flags and instruments.
Commandr.r Byrd calculates that from the time the America took off
at Roosevelt Field. New York. until the forced landing was made, It covered
4,200 miles. This would be 295 miles further than Clarence D. Chamberlin and Charles A. Levine flew in their recent transatlantic journey from
New York to Germany. According to the flyers they came down at 3.30
o'clock Friday morning, French standard time, which would make their
actual time in the air 42 hours and 6 minutes. The time over the ocean was
computed by the Commander as 19 hours.
Speaking to newspaper men who had flown from Paris, Commander Byrd
described the passage over the Atlantic in the impenetrable fog as a "terrifying experience."
Then he mentioned the wandering over France with the disabled compass
and no means of ascertaining their position, and in conclusion said:
"I want to speak especially of the men with me. of their courage and
calmness under those extremely hazardous conditions. The conditions
Could not have been much worse than they were. We found ourselves
flying around with no landing place.
"I want to commend the actions of the men with me,especially during the
trying hours when we could see no land and no sky."
The America, badly damaged by the impact of landing on the water, rests
on the beach at Ver-Sur-Mer, where it was hauled ashore by fishermen from
the base at Cherbourg under the supervision of two of the airmen. Bert
Acosta and Lieutenant Bent Balchen. The engines have been removed and
sent on their way to Paris with other parts that could be readily removed.
Commander Byrd has not abandoned hope that the plane can be salvaged.
Non-Stop Flight of Army Plane from San Francisco
to Hawaii.
The tri-motored Fokker plane of the United States Army
manned by Lieutenants Lester J. Maitland and Albert F.
Hegenberger, left the Oakland Municipal Airport on Bay
Farm Island in San Francisco Bay at 7.09)4a. m. (Pacific
time) on June 28, Honolulu bound. The flight was completed with the arrival of the plane on Wheeler Field (Island
of Oahu), Hawaii, June 29 at 6.22 a. m. (12.52 New York
time), the 2,400 mile flight having been finished in 25 hours
and 43 minutes. Regarding the flight the Associated Press
accounts from Wheeler Field said:
Throughout their long flight they had been reported seen only once byr
the steamship Sonoma, when 750 miles from the California Coast.
The army Ma's GUM in through bright sunshine that had cleared away
the rain and gloom of the night that shrouded their landing place.
Land on Rain-Soaked Field.
In their flight of approximately 2,400 miles, Maitland and Hegenberger
completed the longest transoceanic airplane flight over accomplished.
The landing was made on a rain-soaked field. The huge plane taxied the
en(ire length of the field. Then, circling, it came back to the front ot the
stand, where the highest Army, Naval and civil authorities in the
The Associated Press accounts from Ver-Sur-Mer on July 1 review
island were waiting to extend congratulations to the flyers.
also had the following to Say in part:
The crowd went wild with joy and enthusiasm. Guns of fortresses thunThe flyers, seeking land and safety, were about 200 yards from shore dered in salute as the plane stopped before the reviewing stand.
when they were dropped into the sea and were quickly in water up to their
Thousands who had waited through the long night had begun to (Esperse
elbows.
when Maitland and IIegenberger came through the haze to a triumphant
Manning their rubber rowboat raft, they made several trips to shore, landing. . . .
saved all the most important equipment of their ship and then went to
Maitland and Hegenberger. by their successful flight, supplemented the
sleep at the homes of their French hosts.
pioneer work begun Aug. 311925. by their brothers of the Navy. On that
Only the top edge of the plane's wing was above the surface, but the flyers, date three giant planes of the Navy made the first attempt to cross the
their minds once more easy after their long battle with fog and rain, slept Pact ic from San Francisco Bay to Hawaii.
peacefully until called at 3 o'clock this afternoon at their orders.
One plane failed to rise, another fell into the sea 300 miles off shore, and
The landing gear of the plane was broken in landing and the machine the third, containing the heroic Commander John Rodgers and three other
was otherwise damaged, it was found by the commander of the port of men, came down 300 miles short of their destination. For nine days they
Caen, who, with naval authorities at Cherbourg, went to Ver-sur-Mer in drifted with their seaplane and were picked up when hope had been almost
a naval tug to make arrangements for saving the plane.
abandoned.
Salvage measures were started by Captain Hamburger, who was sent by
the commander of the port of Cherbourg. He reported he had attached Henry Ford Orders Discontinuance in His Paper of
the plane securely to boats by hawsers to keep it from being broken up by
Articles Reflecting on Jewish People—Apology
the breakers
Expected to End Sapiro Suit.
Byrd, who had added to his laurels of being the first man to fly across the
North Pole, the new distinction of spanning the Atlantic through unusually
Through Arthur Brisbane announcement was made on
unfavorable storm conditions, was very tired when he arose this afternoon,
July 7 that Henry Ford has ordered his "Dearborn Indebut was not too exhausted to write up his log of the flight.
Commander Byrd. explaining the wandering of the America in the fog pendent" to discontinue permanently the publication of all
over France for many hours and his final landing in the sea, said his compass articles hostile to the Jewish people. The "World"
of yeshad gone wrong shortly after the America reached the coast of France near
Brest. Then the thick fog held the plane and they did not know where terday, referring to Mr. Brisbane's announcement, said:
It was announced that some of these articles, reprinted in a pamphlet,
they were.
He said they might have been near Paris at one time, but they could not entitled "The International Jew," will be withdrawn from circulation.
Ford is quoted as saying:
Mr.
be sure. When their gas and oil was nearly gone, Commander Byrd said.
"The 'Dearborn Independent' will be conducted under such auspices that
the America was headed in the direction where the sea was thought to lie,
In the hope that a safer landing could be made there than on unseen ground. articles reflecting upon the Jews will never again appear in its columns."
Aaron Sapiro, lawyer and marketing expert of New York and Chicago.
The commander said the America was driven until the fuel was virtually
filed suit against Mr. Ford and his Dearborn Publishing Company for
used up. He sent down a flare and then followed with the plane.
51,000,000,
charging articles published in the "Inderendent" accused him
Byrd said the plane struck shallow water and the landing gear was torn
off. The plane quickly submerged to the wing, where the flyers clung of being in a Jewish ring to exploit American farmers. During the trial,
William J. Cameron, editor of the "Independent." testified that Mr. Ford
some time until they succeeded in launching the rubber lifeboat.
As soon as this was done, they took their instruments, personal effects himself did not read the paper nor did he write "Mr. Ford's Page," on which
objectionable articles appeared.
the
and a sack of mail ashore, where they waited two hours in the rain before
they were discovered by the villagers and taken into their homes.
Associated Press advices from Detroit yesterday (July 8)
Commander Byrd said the America had encountered bad weather all the
way from the United States and that fog had kept them from finding the stated:
Negotiations looking toward the publication of Henry Ford's statement
air line to Paris and had forced them to grope blindly in the air until they
had go choice but to make a descent as best they could when their gasoline that all articles in his "Dearborn Independent" hostile to the Jewish people
had been ordered discontinued have been going on for some time, William
ran out.
Henry Gallagher, chief counsel for Aaron Sapiro in the latter's libel action
Commander Byrd's flight is described as partaking of the against Mr. Ford, said to-day.
Mr. Gallagher added that he "confidently expects" that the libel suit
nature of a scientific expedition. His plane carried the f:rst
will be "settled out of court." Walter F. Lynch of Chicago, law assistant
official air mail from the United States to Europe. Com- of Mr. Sapiro, has been
in Detroit for two weeks in connection with the
mander Byrd and his companions have been feted at various matter of the statement credited to Mr. Ford, Gallagher said.
Louis
Marshall,
New
attorney, who is said to have the original
York
receptions arranged in their honor; on July 6 Premier Poin- of Mr. Ford's
statement, is of counsel for Herman Bernstein, who also has
care conferred on the commander the insignia of Officer of a libel action pending against Mr. Ford. Gallagher said.
"I have no animosity against Mr. Ford and have always believed that
the Legion of Honor. Regarding the presentation, Associhe was misled," Mr. Gallagher declared
ated Press cablegrams from Paris said:
"I feel that Mr. Ford's action reflects the greatest possible credit upon
The decoration conferred on Commander Byrd is higher than that which himself. I feel, too, that it marks a new era of good-will and understanding
Col. Charles A. Lindbergh received from the French Government. Com- among the races who constitute the great American people."
mander Byrd was made an officer of the Legion, instead of a chevalier, the
From the New York "Times" of yesterday (July 8) we
rank bestowed on Col. Lindbergh. because he is an officer in the navy and
Is an older man. In addition his record as an aviator, with the North Pole take the following regarding Mr. Brisbane's announcement:
JULY 91927.]
THE CHRONICLE
Mr. Brisbane writes that his announcement is made at Henry Ford's
request and is based on a signed statement, a copy of which is in possession of Louis Marshall. the lawyer. He quotes Mr. Ford's statement as
follows:
Mr. Ford's Statement.
"In the multitude of my activities it has been impossible for me to devote personal attention to their management or to keep informed as to
their contents. It has therefore inevitably followed that the conduct and
policies of these publications had to be delegated to men whom I placed
in charge of them and upon whom I relied implicitly.
"To my great regret I have learned that Jews generally, and particularly
those of this country, not only resent these publications as promoting antiSemitism, but regard me as their enemy. Trusted friends with whom
I have conferred recently have assured me in all sincerity that in their
opinion the character of the charges and insinuations made against the
Jews, both individually and collectively, contained in many of the articles
which have been circulated periodically in the "Dearborn Independent"
and have been reprinted in the pamphlets mentioned,justifies the righteous
indignation entertained by Jews everywhere toward me because of the mental anguish occasioned by the unprovoked reflections made upon them.
Calls Charges "Exploded Fictions."
"This has led me to direct my personal attention to this subject, in order
to ascertain the exact nature of these articles. As a result of this survey
I confess that I am deeply mortified that this Journal, which is intended to
be constructive and not destructive, has been made the medium for resurrecting exploded fictions, for giving currency to the so-called Protocols of
the Wise Men of Zion, which have been demonstrated, as I learn,to be gross
forgeries. ard for contending that the Jews have been engaged in a conspiracy
to control the capital and the industries of the world, besides laying at their
door many offenses against decency, public order and good morals.
"Had I appreciated even the general nature, to say nothing of the details,
of these utterances. I would have forbidden their circulation without a
moment's hesitation, because I am fully aware of the virtues of the Jewish
people as a whole, of what they and their ancestors have done for civilization and for mankind toward the development of commerce and industry,
of their sobriety and diligence, their benevolence and their unselfish interest
in the public welfare.
"Of course there are balck sheep in every flock, as there are among men
of all races, creeds and nationalities who are at times evildoers. It is
wrong, however, to judge a people by a few individuals, and I therefore
Join In condemning unreservedly all wholesale denunciations and attacks.
"Greatly Shocked." Seeks Amends.
"Those who know me can bear witness that it is not in my nature to
inflict insult upon and to occasion pain to anybody, and that it has been
my effort to free myself from prejudice, Because of that I frankly confefs
that I have been greatly shocked as a result of my study and examination
of the files of the "Dearborn Independent" and of the pamphlets entitled
"the International Jew."
"I deem it to be my duty as a honorable man to make amends for the
wrong done to the Jews as fellow-men and brothers, by asking their forgiveness for the harm I have unintentionally committed, by retracting so
far as lies within my power the offensive charges laid at their door by these
publications. and by giving them the unqualified assurance that henceforth
they may look to me for friendship and goodwill.
"Finally, let me add that this statement is made on my own initiative
and wholly in the interest of right and justice and in accordance with what
I regard as my solemn duty as a man and as a citizen."
Ford's Praise of Jews Quoted,
Mr. Brisbane quotes Mr. Ford as having said to him some time ago:
"Nobody can accuse me of being hostile to the Jewish people as a race.
I employ thousands of them. They include many of my ablest associates.
This building, which I believe to be the finest of its kind in the world, was
built for me by Albert Kahn, Jewish architect here in Detroit, a man in
my opinion with no superior.
"You know about the Wayside Inn which I bought in New England to
perpetuate its interesting memories. I wanted to have it refurnished with
authentic furniture of the correct period. tried various dealers, not Jewish.
and could not get what I wanted. I then asked a Jewish dealer in Boston,
Mr. Saks, to do the work for me and he has done it for me ever since.
satisfactorily and honorably.
"I am hostile to concerns that seek to control others and make money
hard to get, no matter what their race or religion, but I am not hostile to
Jews."
Later Mr. Ford introduced a man who entered the room as "one of the
best men that has worked with me from the beginning." This man, Mr.
Brisbane ways, was a Jew.
Won't Sell the Paper.
In subsequent conversation he offered Mr. Ford a millon dollars on
behalf of W. R. Hearst for "The Dearborn Independent." Mr. Ford
replied:
"No. I won't sell it, but I am going to make it a house organ, and I am
going to stop absolutely everything that could possibly cause complaint or
hurt the feelings of anybody."
Louis Marshall, who is at Saranac Lake.so id last night over the telephone
that Mr. Ford's statement, as given out by Mr. Brisbane, was from a copy
of the original, which was in his, Mr. Marshall's, office safe. A photostatic
reproduction, Mr. Marshall said, would be available to-day to anybody
Who would like to have it.
Results Acc pmplished at Economic Conference Called
by League of Nations in May—Difference of
Opinion on Cartels—Need of Credit for
Farmers—Views on Tariffs and Rationalism.
The American delegates to the Economic Conference
called at Geneva by 'the League of Nations in May have
issued a summary of the accomplishments of the meeting, in
which reference is made to the disorder everywhere immediately after the armistice, and In stating that "there has
been much progress in these post-war years," it is noted that
"the object of this Conference was to speed up this progress." The tariff, and the question of cartels, were among
the considerations of the conference, which, we are told,
"emphasized the importance of what the Europeans have
come to call `rationalism'—that is the development of methods of technique and organization designed to reduce to a
185
minimum the wastes of labor or material In production and
distribution." It is also pointed out that stress was laid at
the Conference on the need of credits by farmers in most
countries. We quote the following from the statement
issued by the American group:
The Verdict of the American Delegates and Experts.
The actual accomplishments of the Conference are in many cases highly
technical and necessarily not light reading. The final, statement given to
the press by the American delegates gives, however, an excellent. summary
of the results obtained and may therefore be reproduced in, full as a considered expression of the appreciation of some 30 delegates.and experts,
both of the work of the Conference and of the efforts of the League:
"As the Conference is drawing to its close, it Is possible to cast up the account of
its work.
"The American members feel that the Conference has been a very real success In
its earnestness, its spirit of co-operation and Its actual recommendations. Although
In no case taking the form of binding agreement and dealing largely with European
economic conditions, the resolutions adopted by the Conference will powerfully
affect public opinion in Europe and throughout the world, and will have a beneficial
influence on future national legislation and International agreements.
"As was to be expected, differences of opinion developed but the discussions
were always courteous and serious. There was a real desire, evidenced on all sides,
to understand each others' problems and point of view. The friendly and earnest
spirit contributed notably to the success of the Conference.
"We were impressed with the ability of the men who were gathered for this Conference. Experts on every phase of economic life were brought'together from every
quarter to pool their Intelligence nad their information.• A great deal of very helpful
work had been done by the Preparatory Committee and by the Economic Section of
the League. This gave some direction to the discussions and considerations, and
with this start the Conference with its advisors has supplemented and elaborated
to a large degree the preparatory material and work. The arrangements•for the
Conference and the mechanism provided for carrying it on were admirable and
effective. The printed record of the preparatory documents and proceedings will be
of great and permanent value in presenting a comprehensive Macre of the economic
situation and problems of the world in this year 1927.
"As to actual results the differences of opinion were, perhaps, as interesting as the
matters of agreement.
"It became clear very early in the discussions, for instance, that there could be no
general agreement on such a question as the ideal level of tariff. In every country
In the modem world there are advocates of low tariffs and of high tariffs, of free trade
and protection. No country has reached complete unanimity on this point, so there
was no chance of international agreement. All the old arguments on the subject
were forcibly stated, no new arguments of note were developed. In spite of this,
however, definite progress was made In this field.
"There was almost as much difference of opinion on the question of cartels. The
resolution finally adopted by the Conference on this subject declared that the result
of the movements towards eartellzation' might be good or bad, depending on
the wisdom of those who conducted them: that, while on the one hand they may
promote efficiency in production and distribution, on the other hand they might
encourage monopolies, check technical progress and endanger the legitimate interests
of Individuals or even of countries. The Conference was not willing to recommend
International regulation of 'cartels,' but held that such Industrial agreements and
combinations should be carefully and continuously studied, and that at all times
public Interest would be served by the fullest publicity about them.
"In fact the movement towards industrial agreements and combinations In the
international field, while showing considerable vitality, is very new. It is still in
the experimental stage. No single International cartel is old enough to permit of a
definite verdict. No two of them are exactly alike. In America we have definite
laws In regard to such combinations. Industrial agreements, with us. may be legal
or illegal, according to their form and purpose. We did not feel justified in giving
our approval to a movement, which may perhaps develop in a direction contrary to
our laws. A serious objection from our point of view was the observed tendency
towards governmental participation in such 'cartels.'
"The differences of opinion, although enlightening in themselves, were less important than the positive achievements of the Conference In reaching agreements
on matters both of fact and of principle. Specially important are the recommendations as to International commerce, looking to greater freedom, more reasonable and
stable tariffs, equality of treatment, and uniformity and simplification in methods.
"It early became evident to all that the foreign commerce of each nation is being
seriously hampered by trade barriers. It was recognized that nations without the
sacrifice of any essential national interest would find mutual advantage in the adoption of certain definite reforms. The Conference specifically recommended that
nations should abolish the Import and export prohibitions and other arbitrary restrictions which, for the most part, are hangovers from war conditions. They should
maintain greater stability in tariffs, in order to avoid the losses to commerce caused
by frequent or sudden changes. Tariffs should be simplified, and applied with
regard for the convenience of those engaged in commerce and with fairness to them.
Nomenclature and statistics should be standardized as far as practicable.
"The Conference agreed that tariffs should be applied to goods coming from different countries without discrimination. Equality of treatment should be guaranteed
by commercial treaties running for long periods and containing the most-favored
nation clause in its broadest form.
"The members, attaching great Importance to the freest possible movement of
raw materials, condemned export or other taxes unduly burdening them, as well as
arbitrary restricti.ns placed upon their movement.
"In examining tile field of industry, the Conference emphasized the importance
of what the Europeans have come to call 'rationalization,' that is, the development of
methods of technique and organization designed to reduce to a minimum the wastes
of labor or material in production and distribution. Rationalization Includes simplification and standardization. Constant reference was made by foreign speakers
to the rapid progress in this direction In the United States. The Conference urged
that In Introducing improvements, every regard should be given to the Interest of the
workers.
"In the section on agriculture exhaustive discussions were devoted to the difficulties of agriculturists the world over. Little attention was paid to methods of production, since these were conceded to be in advance of the methods of marketing.
The difficulties were seen everywhere to consist In the disparities between prices of
raw materials and of consumers' goods. Stress was laid on the need of credits by
farmers In most countries. Co-operative producers' and consumers' associations
were regarded as of prime remedial Importance. Finally, recommendation was made
for world-wide improvement in the collection and dissemination of comparable
statistics of agriculture.
"There was also agreement among the Members of the Conference on the value
of the exchange of views and the serious discussion of constructive proposals, the
opportunity for which was furnished by this meeting in Geneva. In the course of its
work the Conference frequently recommended further study and research on various
problems. In view of the growing realization of the interdependence of nation%
they are all convinced that methods must be worked out to assure continuous collaboration in the study and solution of economic problems.
"We feel that this Conference can Only be judged correctly If considered 88 part
of a process. Much good work in the direction of economic reconstruction had been
done before this Conference convened. A great deal will remain to be done after it
adjourns.
"Immediately after the Armistice there was disorder everywhere—in some localities, chaos. There has been much progress in these pest-wet-years. The object of
this Conference was to speed up this progress.
"It is too early to Judge the results of thls Conference, but we of the American
Delegation feel that a very earnest effort has been made to get the essential problem
clearly stated. Every step taken along the lines laid down by the Conference will,
we are convinced, be a progreeelve step. But. In the last analysis, the result will
depend on the parliaments and people of the different countries. The path towards
progress having been clearly marked, public opinion—enlightened by such discussions as those of this Conference—will force civilization to follow It."
Tariffs, Cartels, Etc., Are More Than National.
Beyond this general statement, few other points need be stressed. Of
the three sections of the Conference, that on commercial questions undoubtedly accomplished most. In consequence of its recommendation to the
League to examine the possibility of future international action "with a
view to promoting the equitable treatment of commerce by eliminating or
reducing the obstructions which excessive customs tariffs offer to internstional trade," the whole question of tariff policy, formerly one of the inalienable rights of sovereignty, has been drawn within the ever-widening
circle of international activity. "The time has come," said the declaration, -"to pia an end - to the increase in tacit& and'ici'move' in the opposite
186
THE CHRONICLE
direction." Thus, said a prominent economist in one of the meetings, the
world appears to be again at such a turning point as that established some
70 years ago by the famous Cobden Treaty between France and England,
which initiated a long period of tariff reduction in Europe.
The Committee on Industry—which, as shown, passed excellent resolutions on "rationaliiation"—became, so to speak, a world parliament of
opposing irreconcilable viewpoints when discussing international cartels.
In general, laborers, consumers, economists, the Anglo-Saxon and the small
Powers were against "cartellization," or at least insistent upon its strict
International control, whereas the industrial continental powers were favorable to it. The resulting resolutions were, therefore, somewhat vague,
which is, perhaps, not unfortunate. Wherever international cartels fill a
pressing economic need, they spring up spontaneously without outside encouragement. As one delegate put it, if a locomotive is going to start
anyway, it can do it just as well without blowing the whistle first.
The agriculture committee, on the other hand, accomplished more than
had been expected, chiefly in the field of international agricultural credit.
In the original proposals of the 1925 Assembly, agricultural problems were
not specifically envisaged. It was not till later, at the instance of one of
the member Governments, that the International Institute of Agriculture
was requested to send a representative to the Preparatory Committee, at
which agricultural questions were, however, relegated to a small subsidiary
committee. Only in the final Conference did agriculture, for the first time
In history, stand on an equal footing with her sister activities, industry and
commerce--Oinderella at last come into her own, as it was put in one of
the closing addresses.
There were remarkably few abstentions or reservations for a gathering
representing such varied interests and discussing such a wide range of
subjects. Russia and Turkey, to be sure, abstained from voting the final
report, but in a special resolution the Russian delegation declared themselves
in favor of such recommendations as did not conflict with their different
economic system. , The American delegation, as shown, only refrained from
voting on cartels. A few minor reserves, or rather desiderata, were formulated by delegates of laborers and of smaller Powers, largely for the purpose of getting their special views upon record.
The Future.
As with the Brussels Conference, it is the influence of the Conference on
future development& by which it will finally be judged. Apart from the
very great indirect results already achieved of establishing personal contacts, bringing about agreement amongst widely different and representative
people, and initiating and completing many specific negotiations, the
direct results of the Conference should begin to appear almost immediately.
In mid-June, the Council of the League of Nations will discuss the next
steps to be taken by the League to make the resolutions effective. The
broad result, which should be consummated in the Assembly next September, should be a great increase in world equipment for international economic co-operation. The League's Economic Committee will be recast and
strengthened to face its new duties; the Economic Section of the Secretariat will be strengthened in personnel and funds to handle its new work;
and various provisions will be made as regards improved statistics, standardization of customs nomenclature, etc., etc.
Shortly afterwards will come the hi-annual Conference of the International Chamber of Commerce at Stockholm with many of the same delegates
present. Undoubtedly, a further impulsion will there be given in still
different circles to the ideas formulated at Geneva. On Aug. 23 convenes the Third Transit Conference of the League, which cannot but be
influenced by the Economic Conference, and on Nov. 14 a diplomatic conference convoked by the League to discuss an international convention envisaging the removal of import and export restrictions, the preliminary
draft of which has been strongly endorsed by the Conference.
But probably the most important and least tangible result of the Conference will be its gradual and cumulative effect on the public opinion of
the world. For in this matter, as in others, public opinion is the final
criterion. A great process of education must set in. The resolutions of the
Conference in themselves can only serve as a point of departure. In the
words of the President of the Conference: "the members and experts have
assumed a real moral obligation to disseminate, to defend and to secure the
triumph of the truths which they have formally proclaimed." Educational
organizations and the press will also play their part, as well as the successive and continuing steps in motion by the resolutions themselves.
To sum up, the members of the Conference, though at first necessarily
disconcerted by the extent of their task, responded loyally to the President's
opening exhortation for solidarity and achieved a greater measure of success than they had either hoped for or anticipated. By the resolutions
adopted, the hands of the liberal groups in all countries, who stand for
greater freedom of intornational trade, will be greatly supported as against
narrow interests, sectionalism and unfair discriminations. For the body
of economic doctrine formulated by this Conference may well be regarded
as the most authoritative and considered expression of sound world economic policy yet enunciated. In following it the nations of the world will
take a long step forward in economic collaboration and reconstruction.
Its Setting and Preparation.
The international organizations represented covered the most varied
fields. To show their scope the more important may well be listed:
_
The Economic Commission of the League of Nations (Geneva);
The International Labor Organization (Geneva);
The International Institute of Agriculture (Rome);
The International Chamber of Commerce (Paris);
The International Federation of Labor (Amsterdam);
The International Institute for the Scientific Organization of Labor;
The International Commission of Agriculture (Paris) ;
The International Bureau for the Publication of Customs Tariffs (Brussels);
The International Co-operative Alliance;
The Rotary International.
The United States is Very Much "Present."
The American group VMS also one of the strongest, most numerous and
mostly widely representative. It included:
Delegates—Mr. Henry M. Robinson, President of the First National Bank,
Los Angeles, and Member of the Dawes Commission; Mr. Norman H.
Davis, formerly Assistant Secretary of Treasury and Under-Secretary of
State; Mr. John W. O'Leary, President of the United States Chamber of
Commerce; Mr. Alonso E. Taylor, Director of Food Research Institute,
Stanford University; Mr. Julius Klein, Director Bureau of Foreign and
Domestic Commerce, United States Department of Commerce.
Ezperts.—Dr. Arthur N. Young, Economic Adviser to the Department of
State; Dr. E. Dana Duran, Chief of the Research Division, Department of
Commerce; Mr. Grosvenor Jones, Chief of the Finance and Investment
Division, Department of Commerce; Dr. Louis Dorneratzky, Chief of the
Regional Division, Department of Commerce; Mr. E. W. Camp, Acting
Commissioner of Dustoros. Treasury Department; Mr. Asher Hobson, Per-
[VoL. 125.
manent American Delegate to the International Institute of Agriculture at
Rome; Dr. Percy W. Bidwell, an Economist of the United States Tariff
Commission; Mr. Henry Chalmers, Chief of the Division of Foreign Tariffs,
Department of Commerce; Mr. John P. Frey, of the American Federation
of Labor.
Secretary.—Mr. Somerville Pinkney Tuck, Consul of the United States of
America at Geneva.
There were also other Americans assisting the delegation informally,
among them Mr. Arthur Bullard, who furnished liaison between the delegation and the 26 American journalists attending the Conference. In
addition the following Americans represented international organizations:
International Chamber of Commerce (Paris).—Mr. Roland W. Boyden,
formerly American Observer on the Reparations Commission; Mr. Basil
Miles, American Administrative Commissioner at the International Chamber of Commerce.
Expert Invited by the President of the Conference.—Mr. Edward E. Hunt,
member of the International Committee on the Scientific Organization of
Labor.
Including the American commercial attaches called in from the principal
capitals of Europe, there were approximately 30 Americans connected with
the conference in various capacities. They were, on the whole, remarkably
well prepared. At the suggestion of Mr. Page of the Preparatory Committee, a study group had been organized in Washington, consisting largely of
the American experts, to work over the voluminous documentation. This
work was continued on the boat crossing the Atlantic with two sessions
daily, and in Geneva itself, throughout the conference, the group broke
precedent by meeting as a body every morning at 8.45.
U. S. Government to Dispose of Holdings in Philippine
Islands in Commercial Enterprises.
Announcement by Gov. General Wood to the effect that
the United States Government is going out of business in
the Philippine Islands and its holdings in commercial
enterprises, involving about $50,000,000, will be sold to the
highest responsible bidders was contained in "Associated
Press" advices from Manila May 10. With regard to this
announcement the New York "World" of May 12 said:
If Gov. Wood of the Philippines tries to carry out his intention of
selling the insular Government's interest in Philippine business enterprises, he will find himself in conflict with the laws under which these
interests were created, according to Juan B. Alegre, member of the
Philippine Senate and Chairman of the Committee on aBnks and
Finance.
In New York yesterday the Senator said the Governor General
possessed the right to operate these enterprises wherever the Government's stock interest gave it control, but that he was powerless to sell
the stock to individuals without ,permission of the Philippine Legislature or the United States Congress.
News dispatches from Manila that Gov. Wood intended to sell the
Government's interests involving about $50,000,000 were branded by
Senator Alegre as misleading. He said it was true a recent decision
by the Insular Supreme Court defined the Governor General's right to
exercise full power over the Government's holdings, but that this control did. not extend to his power of disposal.
Paid For Out of Taxes.
Senator Alegre traced the Government's business operations in the
islands back to the time shortly after the World War when steps
were taken to interest outside capital in the Philippines. He said that
the money by which the Government acquired its interest in railroads,
sugar centrals, banks, coal mines and general development agencies,
had all been collected from the Phillippines through taxation.
The so-called sugar centrals, which are plans for part refinement of
sugar, Senator Alegre said, are in healthy financial condition as the
result of the recent crop, which was the lagest in the history of the
islands. He said the Manila Railroad also was making profits, and
expressed assurance that "no Government action will be countenanced
that will mean a hasty disposal of these properties to the profit of
financial bargain hunters."
Gov. Wood's Policy.
In announcing his intention of taking the Government out of business in the Philippines, Gov. Wood said the sale would be left with
the directorates of the companies in which the Government held its
interests, and that American and Filipino capital would be favored
although foreign capital would be accepted.
He has long urged the retirement of the Government from business,
and his announcement that he intended to bring it about came after
the Insular Supreme Court's ruling which he accepted as giving him
full authority.
The Manila dispatches of May 11 making known the
announcement of Gov. General Wood stated that he had
outlined to the "Associated Press" a new policy he has
adopted as the head of all Government-controlled properties
and business. The accounts went on to say:
The new policy is occasioned by the recent ruling of the Insular
Supreme Court, which held in effect that the Governor General has
full power over Government-controlled institutions.
Almost at the same time General Wood handed control of the
Manila Railroad Company, one of the corporations in which the
Government owns the majority of the stock, over to Filipinos by giving
the natives a majority on the board of directors of the company.
Management of the company also was left in native hands.
Government holdings will be disposed of as quickly as possible by
public sales, General Wood announced.
Interests which will be sold include the great sugar centrals in
Oriental Nergros and Occidental Negros provinces. Millions of pesos
were loaned to this enterprise by national banks here, but the loans
are unrecoverable because of bad market conditions and crop losses.
General Wood said he was considering an offer from New York for
the sugar centrals.
The Cebu Portland Cement Company, capitalized at 5,000,000 pesos;
the National Development Company, which owns thousands of acres
of agricultural and timber lands in Neuva Ecija Privince; the National
Coal Company, a 3,000,000 peso concern, and the Manila Railroad
Company, capitalized at 20,000,000 pesos, are among those slated for
JULY 91927.]
THE CHRONICLE
disposal. Many of the Government enterprises will die a natural
death in the turnover.
No plans have been made for disposal of the Philippine National
Bank, which has financed many of the Government enterprises.
Governor General Wood expects the economic atmosphere of the
islands to be cleared by his new policy and that there will be revival
of business to offset the millions in losses sustained by the Government
in operating the various concerns.
On May 11 further "Associated Press" advices from
Manila said in part:
Governor General Wood, explaining further his announced policy
of retiring the insular government from business, through sale of
the numerous government owned corporations, said today that he does
not intend to try to dominate or meddle in the disposal of the companies.
General Wood said that sale of the property, involving about $50,000,000, will be left entirely in the hands of the directors of the corporations, who will maintain an attitude of watchfulness to prevent
any unreasonable transactions. The sales will be orderly, and regular
American and Filipino capital will be favored, although foreigners
will be allowed to bid, except in cases where best interests will be
served by selling only to Americans or Filipinos.
Two Ameericans were elected to replace two Filipino directors at
the annual meeting of the National Development Company yesterday.
The company supervises many government enterprises. As a result,
the next president of the company was expected to be an American.
It was stated in Washington "Associated Press" dispatches on May 10 that:
Governor General Wood's decision to sell government-owned businesses in the Philippine Islands was made without orders from Washington, War Department officials said today.
Major General McIntyre, chief of the Bureau of Insular Affairs,
said, however, that the Governor General's action was the result of
a policy he had long considered necessary. General Wood bad advocated the disposal of government-owned commercial enterprises in his
annual reports for several years.
The court said in regard to the effect to be given this
report that, "it is entirely plain that to treat the statements
in this report—based entirely upon an ex parte investigation
and formulated in the manner hereinabove set forth as constituting in themselves substantive evidence upon the questions of fact here involved, violates the fundamental rules of
evidence."
The court stated that "without entering into a detailed
statement of the evidence, we find, from the greater weight
of the competent testimony, that competitive conditions in
the trade in harvesting machines have been established in
compliance with the requirements of the consent decree."
In conclusion the court said: "We conclude that not only
has the International company complied with the specific
requirements of the consent decree but that competitive conditions have been established in the Inter-State trade in
harvesting machinery bringing about 'a situation in harmony with law.'"
The decree of the District Court dismissing the supplemental petition was therefore affirmed. •
Mr. Justice McReynolds, Mr. Justice Brandeis and Mr.
Justice Stone took no part in the consideration or determination of this cause because of previous connection with
the litigation.
Mr, Justice Sanford delivered the opinion of the court.
The full text follows:
•
This is a direct appeal, under Section 238 of the Judicial Code as
amended by the Jurisdictional Act of 1925, from a final decree of the District Court—specially constituted under the Expediting Act and composed
of three Circuit Judges—dismissing a supplemental petition of the United
States to obtain further relief in addition to that granted by an earlier decree in the same case.
In the original petition, which was filed in 1912, the linited States alleged
that the International Harvester Co.—hereinafter referred to as the International Co.—and other defendants, were engaged in a combination restraining inter-State trade and commerce in harvesting machines and other
agricultural implements and monopolizing such trade in violation of the
Anti-Trust Act; that the International Co. had been formed by certain of
the other defendants in 1902, with a capital stock of 8120,000,000, for
the purpose of combining five separate companies then manufacturing and
selling harvesting machinery, ulliose aggregate output exceeded 85% of
such machinery produced and sold in the United States, and tliereby eliminating competition between these companies, restraining and monopolizing
the inter-State trade in such machinery, and promoting a similar monopoly
in other agricultural implements; that in pursuance of such purpose the
International Co. acquired in 1902 the entire property and business of
these five companies; that it thereafter acquired the property and business
of various competitors and the control of steel, coal and other subsidiary
companies, added all other classes of agricultural implements to its lines,
used various unfair trade methods and practices to destroy its competitors,
closed the opportunities for new competitors in all lines of agricultural
Implements, and advanced the price of harvesting machinery; and that it
was then producing at least 90% of the grain binders and 75% of the
mowers produced and sold in the United States, and over 30% of all agricultural implements ether than harvesting machinery.
Action Against International Harvester Co. Dismissed by Supreme Court—Competit.ve Conditions
Found to Have Been Restored—Government
Contentions Alleging Inadequacy of Agreement Made in 1914 Are Not Sustained.
The United States Supreme Court on June 6 in deciding
the case of the United States against the International Harvester Co. et al., involving allegedly improper competitive
practices in Inter-State trade, held that the consent decree
entered into by the Government and the International Harvester Co., had been complied with. The case went before
the Supreme Court on a direct appeal from a final decree
of the District Court for Minnesota dismissing a supplemental petition of the United States to obtain further relief
In addition to that granted by an earlier decree in the same
case. In the original petition,,which was filed in 1912, the
United States alleged that the International Harvester Co.
and other defendants were engaged in a combination restraining inter-State trade and commerce in harvesting machines and other agricultural implements and monopolizing
such trade in violation of the Anti-Trust Act.
The "United States Daily" points out that by the decree
as originally entered in 1914 it was adjudged and decreed
that the combination be dissolved and that the business be
divided among at least three substantially equal, separate,
distinct, and independent corporations with separate owners
and stockholders. This was subsequently modified by a decree entered pursuant to an agreement binding upon the
parties thereto, the Attorney-General and the Harvester
company. This decree provided that the provision requiring
the company to be divided should be stricken out. In its
place was substituted a provision requiring that its business
and assets "be divided in such manner and into such number
of parts of separate and distinct ownership as may be necessary to restore competitive conditions and bring about a
new situation in harmony with law."
In a supplementary petition filed some years later the
Government prayed that the court adjudge and decree that
the company still was a combination and monopoly restraining inter-State trade in harvesting machinery; that the
earlier decree was inadequate to achieve its declared purpose and the United States was entitled to the further relief
necessary to restore competitive conditions and bring about
a situation in harmony with law; and that the business and
assets of the company "be separated and divided among at
least three separate corporations as suggested by the Federal Trade Commission in its report to the Senate dated
May 4 1920."
The report thus referred to has been made pursuant to a
Senate Resolution of May 1918 directing the Federal Trade
Commission to investigate the causes for the high prices of
agricultural implements, and any restraint of trade therein.
The Commission had made an ex parte investigation and
the results had been tabulated.
187
Dissolution Order Modified by Agreement.
After an extended hearing on the merits, the District Court held—one
judge dissenting—that although it was not shown that there had been any
unfair or unjust treatment by the International Co. of its competititors and
there was nothing in the history of its expanding lines which should be
condemned, it had been, from its beginning in 1902, and then was, a combination violating the Anti-Trust Act, suppressing competition between the
five original companies and directly tending to a monopoly, a condition
that had been accentuated by its subsequent acquisition of competing plants
and subsidiary companies; and that the entire combination and monopoly
should be dissolved. 214 Fed. 987. By the decree as originally entered in
August 1914, it was "adjudged and decreed that said combination and monopoly be forever dissolved to the end that the business and assets of the
International Harvester Co. be separated and divided among at least three
substantially equal, separate, distinct, and independent corporations with
wholly separate owners and stockholders," and that the defendants submit
a plan of such separation for the consideration of the court; and jurisdiction was retained to make such additional decrees as might be necessary
to secure the final dissolution of the combination and monopoly. This
was subsequently modified by a decree entered in October 1914 by which,
pursuant to an agreement with the Attorney-General of the United States,
the provision requiring the business and assets of the International Co. to
be separated and divided among at least three distinct corporations was
stricken out, and a provision was substituted requiring that its bocihess
and assets "be divided in such manner and into such number of parts of
separate and distinct ownership as may be necessary to restore competitive
conditions and bring about a new situation In harmony with law."
The defendants appealed from the final decree to this court; but, before
the case had been decided, dismissed their appeal, pursuant to an agreement between the parties. And after the case had been remanded to the
District Court, upon a stipulation signed by the Attorney-General of the
United States and the solicitors for the defendants, a consent decree was
entered therein, on Nov. 2 1918 which, after reinstating the former decree
as modified, recited that, "the parties having agreed upon and aubmitted
to the court a plan for carrying into effect the order contained in said
decree that the combination and monopoly therein adjudged unlawful be
dissolved, and the court having considered and approved the plan, it Is
further ordered, in accordance therewith, as follows:" la) The International Co. is prohibited and enjoined from baying more thin one :epresen- '
tative or agent in any city or town for the sale of harvesting machines
and other agricultural Implements: (b) It shall offer for sale to responsible manufacturers of agricultural implements, the harvesting machine
lines made and sold by it under the trade names of Osborne, Milwaukee and
Champion, respectively, with the equipment specially' used In their MAIMfacture, and accept a reasonable price from any purchaser approved by
the United States; (c) It shall also endeavor to'sell in connection with
said harvester lines the Champion and Osborne harvesters plants, and accept a reasonable price therefor from, the purchasers of said harvester
188
THE CHRONICLE
lines; (d) If any of said harvester lines, including plant, etc., shill not
have been sold within one year after the close of the existing ,var, then,
upon request of the United States, the same shall be sold at public auction;
(e) "The object to be attained under the terms of this decree is to restore competitive ccnditions in the United States in the inter-State business
In harvesting machines and other agricultural implements, and, in the
event that such competitive conditions shall not have been established at
the expiration of 18 months after the termination of the existing war . . .
then and in that case the United States shall have the right to such furrher
relief herein as shall be necessary to restore said competitive cololitions
and to bring about a situation in harmony with law; and this court reserves
all necessary jurisdiction and power to carry into effect the provisions of
the decrees herein entered."
FoL. 125.
control or dictate the prices of the harvesting machines and their appurtenances which it and its competitors make and sell, that the prices of
its machines and appurtenances to the dealers, and to the farmers who use
them in proportion to their costs, have decreased and are low.
"The purpose of preventing undue restraint of trade is to prevent unreasonably high prices to the purchasers and users of the articles traded
in. The evidence in this case satisfies us that these objects have been successfully attained under the decree of Nov. 2 1918, the defendant's compliance with its requirements, and their conduct of their inter-State commerce in harvesting machines and their appurtenances since the rendition
of that decree."
From these conclusions the third judge dissented, upon the ground that
the evidence convinced him that the decree of 1918 had entirely failed to
restore genuine competitive conditions; that the International Co. had
Consent Decree is Taken After Appeal is Dropped.
Thereafter, in 1920, after a hearing upon evidence, the court entered an such advantages in resources, organization, selling mediums, production
costs,
manufacture of raw material, and volume and spread of business, as
order adjudging and decreeing, the United States consenting thereto, that
the decree of 1918, properly interpreted, did not require the International to be able completely to dominate the trade in harvesting machines; and
Co. to offer for sale the Champion and Osborne harvester plants except in that it did so control and dominate by regulating prices, fixing the prices
connection with sales of the respective harvester lines; and further ad- for its own machines, by which the other manufacturers were prudently
judging and decreeing that inasmuch as the International Co. had, pursu- governed. 10 F. (2) 827. A decree was thereupon entered dismissing the
ant to the provisions of said decree, "duly sold" the Champion, Osborne and supplemental petition.
It is clear that the charges of the supplemental petition relate solely to
Harvester lines to companies which did not desire to purchase the respective
plants, the latter were not subject to sale under the provisions of said the inter-State trade in harvesting machines, and that no issue is involved
as
to the other lines of agricultural implements. As to this the parties
decree.
agree; the Government specifically stating in its brief that this "proceedPetition is Filed to Grant Relief.
ing has to do only with an unlawful combination in harvesting machines."
In July 1923 more than 18 months after the termination of the war,
Trade in Hdrvesters Only Considered in Petition.
the United States filed in the District Court the supplemental petition
here involved, for the purpose as stated, of securing, in accordance with
The basic contention of the Government here is that the declared purpose
of the decree of 1918 was to restore competitive conditions in the
clause (e) of the decree of Nov. 2 1918, such further relief as should be
"necessary to restore competitive conditions in inter-State business in harvesting machine industry substantially as they had existed in 1902 beharvesting machines and other agricultural implements, and bring about a fore the International Co. was formed by the combination of the five
situation in harmony with law." This petition alleged that the output and original companies, that is, to so increase the amount of competition and
sales of the Champion, Osborne and Milwaukee harvesting lines which the the number of competitors as to restore, in a "quantitative" sense, "the
International Co. had been required to sell under that decree, constituted free and open competition which existed when the combination was formed";
such a small part of its total output and sales and such a negligible part and that therefore the sole test to be applied in determining whether the
of the total trade in harvesting machines in the United States, that the decree has accomplished its purpose, is whether it "has had the effect
decree was inadequate to accomplish its declared purpose; that the sale of actually to restore in the harvesting machine industry the competitive conthe Osborne and Champion lines had had little or no effect upon competi- ditions which obtained prior to 1902."
We cannot sustain this contention. This is entirely inconsistent with
tive conditions; that, although the Milwaukee line had not been sold, the
the
United States had not requested its sale at public auction under clause (d) purpose of the consent decree, both as appears from its terms and as it was
of the decree, as its separation could have no appreciable effect on com- apparently construed by the District Court itself.
Its plain and evident purpose was to substitute for the requirement
petition ; that the International Co.'s control of inter-State trade in harin
vesting machines had increased from 1918 to 1922; that the number of in- the previous decrees that the International Co. be divided into separate
and
dependent manufacturers of harvesting machines was steadily shrinking, distinct corporations, the requirements that, in order to establish
"comdue to their inability to compete with the International Co., which, with petitive conditions" bringing about "a situation in harmony with
law," the
Its large capital, credit, resources, profitable side lines and subsidiaries, International Co. should limit its sales agency in any town or city
to a
was enabled, particularly in times of depression, to sell its harvesting single representative, and should sell three of its harvesting
machine lines
machines at cost, generally lower than that of its competitors, and thus' to independent manufacturers of agricultural implements; and to
give the
effectually eliminate competition and monopolize the bssiness; that
United States the right to further relief only "in the event" that
within
it
had used its power in this manner, particularly since the decree of
1918, 18 months after the termination of the war such competitive conditions
for the purpose and with the effect of restraining and monopolizing trade had not been established.
in harvesting machines by compelling its competitors to cease their manuConstruction of Decree Precludes Further Relief.
facture and sale; and that unless the combination and monopoly that had
And a construction of this decree by which, although its requirements
been found to exist should be effectively dissolved by dividing the Internahave been fully complied with and lawful competitive conditions
tional Co. into at least three separate concerns, its monopolistic control
established,
the United States would nevertheless be entitled to further relief
would increase and become complete.
by the
division of the International Co. into separate and distinct
The petition prayed that the court adjudge and decree that the Internacorporations
for the purpose of restoring :he actual competitive conditions
that had
tional Co. still was a combination and monopoly restraining inter-State
existed 16 years before the entry of the consent decree, would
trade in harvesting machinery; that the decree of 1918 was inadequate
plainly be
to achieve its declared purpose and the United States was entitled to the repugnant to the agreement approved by the court and embodied in the
decree, which has become binding upon all parties, and
upon which the
further relief necessary to restore competitive conditions and bring about a
International Co. has, in the exercile of good faith, been
entitled to rely.
situation in harmony with law; and that the business and assets of the
In support of its alternative contention that competitive
International Co. "be separated and divided among at east three separate,
conditions have
been established bringing about a situation in harmony
distinct and independent corporations of wholly separate owners, stockhold- not
with law, the
Government relies in large measure upon various
statements
ers and managers, substantially as suggested by the Federal Trade Comtions contained in the report of the Federal Trade Commission,and tabulawhich was
mission in its report to the Senate dated May 4 1920"; which was filed
introduced in evidence over the objection of the International
Co.
as an exhibit to the petition.
But it is entirely plain that to treat the statements
in this report—
based upon an ex pane investigation and formulated in the
Petition Asked Decree for Further Relief.
manner hereinabove set forth—as constituting in themselves substantive
The report thus referred to had been made pursuant to a Senate Resoluthe questions of fact here involved, violates the fundamentalevidence upon
tion of May 1918 directing the Federal Trade Commission to investigate
rules of evidence
the causes for the high prices of agricultural implements, and any restraint but entitling the parties to a trial of issues of fact, not upon hearsay,
upon the testimony of persons having first hand
of trade therein. The Commission had made an ex parte investigation,
knowledge
of the
covering mainly the period from 1913 to 1918, and based largely upon data facts, who are produced as witnesses and are subject to the test of crossexamination.
concerning their costs, profits, etc., the results of which were tabulated
And no support for the Government's contention
in this respect is afby its accountants, partly in connection with a previous report that had forded
by Chicago Board of Trade vs. Olsen, 262 U. S.
1, 13, 37, in which
been made by the former Bureau of Corporations.
the reference to statements that had been
made by the Federal Trade ComIn this report—made only a year and a half after the entry of the con- mission in
a
sent decree of 1918 and before the war had terminated—the Commission gress whose report to the President prior to the passage of the Act of Conhad expressed the opinion that this decree would fail of its purpose to re- determining constitutional validity was involved, was solely as an aid in
whether this court was warranted in rejecting as
store competitive conditions and that further steps were necessary to a finding
that had been made by Congress as to the necessity unreasonable
for the Act.
secure its object; and had recommended that the business and assets of the
International Co. be divided among three new companies, as therein outCompetitive Conditions Held to Be Established.
lined. A copy of this report had also been transmitted to the AttorneyWithout entering into a detailed statement of the
evidence—which is so
General; and thereafter the Government, adopting the recommendation of voluminous as to render this impracticable
—we find, from the greater
the Commission, filed this supplemental petition.
weight of the competent testimony, that competitive
conditions in the trade
The petition was answered; an examiner appointed and evidence taken in in harvesting machines have been established in
compliance with the
1924. In March of that year, as shown by the evidence, the International requirements of the consent decree.
Co. sold its Milwaukee line of harvesting machines, subject to the approval
In the course of a general development that had taken
place in the
of the Attorney-General or the court.
agricultural industry since 1902, the International Co.
and many of its
principal competitors had extended their lines from
District Court -Found Competition in Force.
implements used in
particular
At the hearing, in 1925, the District Court found that the International had becomeseasons, such as harvesting machines, plows and seeders, and
in 1918, when the consent decree was entered,
"long-line" yearCo. had complied with the requirements of clauses (a), (b), (c) and (d) round
companies, manufacturing and selling full lines of
of the decree of 1918, and, without attempting to recite the evidence on the plements.
agricultural imThis
had
led to cheaper production and distribution; and, the
disputed questions of fact arising under the Government's application for sale
of one line helping to sell the others, had brought
further relief under clause (e), stated its conclusions—two judges conabout a change
in competitive conditions affecting generally all their
curring—as follows:
ing their products they had also generally adopted lines. In distribut"The evidence in this case has convinced, not only that it fails to prove
the plan of selling
their implements to local retail dealers, who resold
them to farmers; and
by a fair, or any, preponderance thereof that the International Harvester
these dealers had become, through their personal
efficiency and the goodCo., since the sale of the 'Osborne,' Milwaukee,' and 'Champion' lines and will
and the friendly relations which they had
established with the farmtheir appurtenances, has been or is unduly or unreasonably monopolizing or
ers, factors of prime importance in distributing the
• restraining inter-State commerce in harvesting machines or their appurteimplements of the
different companies. Prior to 1912 the International Co.
had also adopted
nances in the United States; but in our opinion it conclusively proves that
the general policy, when there was more than one
implement dealer in any
It has not done and is sot doing so, that competition in the manufacture
town, of distributing its various lines, especially its
McCormick and Deerand sale of harvesting machines and their appurtenances in inter-State
ing harvesting machines, among different dealers; and
by means of "excommerce in the United States has been and is free and untrammeled,
clusive" contracts made with such dealers, its competitors
were frequently
that the percentage of all such machines that were made and sold by the
prevented from acquiring any adequate retail outlet
rnternational Harvester Co. has decreased from about 85% in
for
1902, to This was one of the practices which the Government their Implements.
had assailed in its
about 64% at the time of the decree of Nov. 2 1918, and ever since that original
petition. Furthermore, as the International Co.—having
powerful and successful independent competitors of the Harvester Co. confive
different lines of harvesting machines, which were necessarily
somewhat in
test
field with it, and that in their presence it cannot and does not competition
among themselves—had laid chief stress upon its McCormick
JULY 91927.]
THE CHRONICLE
189
We further find that while several of the competitors of the International
and Deering lines, the sales of its Champion, Osborne and Milwaukee lines,
have retired from business since 1911, some
which were frequently combined in the hands of one dealer, had propor- Co. in harvesting machines
commencing in 1921, these retirements
tionately decreased; so that these three lines furnished in 1918 a com- during the period of depression
with the International Co., but to other
compete
to
inability
paratively small part of its harvesting machine business. This, however, were not due to
in no way responsible; that the place of these rewas by no means negligible; and these three lines, which had been im- causes for which it was
been taken by other and stronger ccmpetitors; and
proved and kept up to date, still retained a well-established reputation tiring competitors has
that in 1923 it not only had as many competitors in harvesting machines
and a capacity for effective development.
as in 1911, but competitors of greater strength and competitive efficiency.
Consent Decree Provided for Limiting Representatives.
We also find that the International Co.'s percentage of the inter-State
In this situation the consent decree provided, as the means of establishing trade in harvesting machinery is not shown to have increased since 1918, as
Interthe competitive conditions which it sought to bring about, that the
the Government alleged; but, on the contrary, appears to have already denational Co. should be limited to one sales representative in any town or creased. The evidence does not show with any definiteness the percentage
lines
harvesting
and
Osborne
Milwaukee
Champion,
its
sell
should
city, and
of th International Co.'s trade in such machinery in 1918. This, as alleged
to independent manufacturers of agricultural implements.
in the supplemental petition, had been approximateyl 77% is 1911, the
The International Co. complied immediately with the single-dealer re- year before the original petition was filed. And the Government's own
drastic
quirement in clause (a) of the consent decree. This has caused a
tabulations show that while in 1910, the year after the consent decree was
limitation upon its method of distribution, to which none of its competi- entered, the International Co. sold 66.8% of all the harvesting machines
tors have been subjected. By such compliance it lost the services of almost sold in the United States, in 1923 its percentage was only 64.1%. We
5,000 dealers, to whom it had sold in the preceding year implements to the need not determine the disputed question whether, as the International Co.
amount of more than $17,000,000. Many of these were taken over by its contends, there had been in fact a larger decrease.
competitors, who acquired the benefit of their experience, good-will and
And, finally, the testimony, practically uncontradicted, of a great numstanding among the farmers. It was also compelled to place its McCormick ber of witnesses, including officers of competitive companies, competitive
and Deering harvesting lines, which usually had been handled by two deal- retail dealers who had handled the International Co.'s lines before the
ers, with one of these dealers, who had developed a business in only one single-dealer requirement was put into effect, and the officers of farmof them and was placed at a great disadvantage in handling them together; ers' associations, leaves no room to doubt that since the entry of the decree
a difficulty which it has sought to overcome as far as possible by combin- of 1918, there had been established, and then existed, a free, untrammeled,
ing its McCormick and Deering lines into a new harvesting line that it has keen and effective competition in harvesting machinery that was in no wise
been attempting to introduce in the American market in place of the two restrained or suppressed by the International Co.
separate lines. Further, being limited to one dealer in a town, and
We conclude that not only has the International Co. complied with the
having its own tractor to sell in competition with the Fordson tractor, it specific reqtfirements of the consent decree, but that competitive conditions
who
dealers,
Ford
with
has not been in a position to place its implements
have been established in the inter-State trade in harvesting machinery
have been available to its competitors as new and favorable outlets for bringing about "a situation in harmony with law." The decree of the
their implements. And, in general, it clearly appears that the single dealer District Court dismissing the supplemental petition, is therefore affirmed.
limitation in the consent decree has greatly enlarged the field of activity
of its competitors, and has proved to be, as had been anticipated, an effective means of providing competitive conditions.
Thus, the Vice-President and Sales Manager of Deere & Co., a leading Federal Trade Commission Held to Be Without Power
competitor, testified: "After the decree by which the Harvester Co. was
to Compel Eastman Kodak Co. to Sell Laboratories
prevented from having more than one dealer in a town, a great many deal—Remedy with the Courts.
harers who had formerly sold Deere plows and McCormick or Deering
vesters, and to whom we had been unable to sell our harvester line, took
In the Investment News Department of our issue of June 4
on the John Deere harvester line"—"my idea is that whoever made the
1927, page 3357, we reported that the United States Supreme
provision that the Harvester Co. should confine its operations to one dealer
in a town struck the crux of the whole situation."—"We know positively Court on May 3 had handed down a decision holding that the
that with the Harvester Co. confined to one dealer in a town we can com- Federal Trade Commission was without authority to order
pete with them."
of three laboratories
The International Co. also complied with the requirements of clauses the Eastman Kodak Co. to divest itself
(b), (c) and (d) of the consent decree by selling its Champion, Osborne acquired for the purpose of forestalling competition in the
and Milwaukee harvesting lines to independent manufacturers of agricul- manufacture and sale of moving picture films. This detural implements.
(The cause of the delay in selling the Milwaukee line is fully explained cision affirmed the decree of the Circuit Court of Appeals
in the testimony; and the Government makes no complaint in regard of the Second Circuit. It was pointed out that the Eastman
thereto.)
Kodak Co. produces 94% of the raw films used in the United
The purchasers—B. F. Avery & Son, the Emerson-Brantingham
States. The Allied Laboratories produces positive prints
and
old-established
Company—are
Plow
Company and the Moline
well-known companies, and among the largest manufacturers of and uses films made by the Eastman Co., having abandoned
Implements in the United States. The acquisition of these estabthe use of foreign films. The "United States Daily," in
lished lines of harvesting machinery, filling out and strengthening their
other implement lines, has greatly increased their competitive strength as discussing the subject says:
long-line companies. And although there was from 1921 to 1923 a period
By the purchase of the three laboratories and threat to use them in comof great depression in the agricultural implement industry, corresponding' petition with the Allied Laboratories, it was complained the Eastman Co.
to the general depression in agricultural conditions, which made it diffi- compelled the Allied Laboratories to enter into an agreement to use Eastcult to launch new lines and develop new business', the officers of each of man films to the exclusion of foreign films.
these companies testified as to their entire satisfaction with their new
The realness of the competition which..-the Eastman Co. encountered was
lines, the resulting increase in their competitive ability, and their confi- disclosed in the fact that, prior to 1921, the Eastman Co. produced 94%
dence that with the resumption of better conditions in the industry they of the raw films user in this country. When the Allied Laboratories was
would be able to compete energetically and successfully with the Inter- put into operation the sales of the Eastman Co. declined to 81%.
national Co. in the harvesting machine business. And we cannot doubt,
When it acquired three laboratories, with a capacity sufficient to equal
upon the entire evidence, that the provision of the consent decree by which all the laboratories east of Chicago, and anounced its intention of entering
these three established harvesting lines were taken away from the Interna- upon the manufacture of such prints, the act was claimed to have been
tional Co., ia whose hands they had not been developed, and transferred to an effective threat compelling users of films to enter into an agreement to
the purchasing companies, whose long lines were filled out and strength- use Eastman films exclusively, in return for which the Eastman Co. kept
ened, has constituted and will constitute in progressive degree, as the agri- Its laboratories inactive.
cultural depression ceases, an effective means of increasing the competiThe Federal Trade Commission held this to be contrary to Section 5 of
tion in harvesting machinery as contemplated by that decree.
the Federal Trade Commission Act, and directed the Eastman Co. to divest
itself of the three laboratories. The Circuit Court and now the Supreme
Purchasers Are Old Well-Established Companies.
Court hold that the Commission is without power to issue such an order,
It does not appear that since the entry of the consent decree the Inter- but "if the ownership or maintenance of these laboratories has produced
national Co. has used its capital and resources—which, although much any unlawful status, the remedy must be administered by the courts in
larger than those of any single competitor, are but little larger than the appropriate proceedings therein instituted."
aggregate capital and resources of all its competitors, and are in large
part employed in its foreign trade—its subsidiary companies or incidental
Justice Stone rendered a dissenting opinion, pointing out
advantages, for the purpose or with the effect of restraining and suppress- that it
has not been disclosed that the Federal Trade Comharvesting
in
trade
machinery; that it has at any time
ing the inter-State
reduced the prices of harvesting machines below cost, for the purpose of mission has authority to order the Eastman Co. to divest
driving out its competitors; or that it has at any time controlled and domi- itself of the properties. He cited the case of the Western
nated the trade in harvesting machinery by the regulation of prices. It is Meat Co.,
involving the acquisition of the stock of a comtrue that in 1921 and 1922, the period of acute depression in the agricultural conditions and the diminished purchasing power of the farmers—not peting concern. Justice Brandeis joined Justice Stone in
only the International Co. but its competitors, in a movement initiated the dissenting opinion. The full text of the opinion, delivby the leading manufacturer of plows, for the purpose primarily of dis- ered by
Justice Sanford, and the dissenting opinion of Mr.
posing of the surplus stocks which they had accumulated during the war
period under high cost conditions, and as a necessary measure of self- Justice Stone follow:
protection, made generally material reductions in the prices of harvesting
This writ brings up for review a decree of the Circuit Court of Appeals
machines and other implements. But the International Co. did not at any setting aside in part an order of the Federal Trade Commission, entered
time reduce its prices below replacement cost; and its reduction in prices after a due hearing in a proceeding instituted by it under Section 5 of the
was not intended to elirniiate competition and has not had that effect. It Federal Trade Commission Act, by which the Eastman Kodak Co-, the
has not, either during those two years or since, attempted to dominate or Allied Laboratories Association, Inc., and others were required to desist
In fact controlled or dominated the harvesting machinery industry by the from acts held by the Commission to constitute unfair methods of competicompulsory regulation of prices. The most that can be said as to this, is tion in the manufacture and sale of positive cinematograph films in interthat many of its competitors have been accustomed, independently and as State and foreign commerce.
a matter of business expediency, to follow approximately the prices at which
These positive films are raw materials used by film laboratories in
It has sold its harvesting machines ; but one of its competitors has habitu- making positive prints of motion pictures that are thrown upon the screen.
higher
somewhat
prices.
The law, however, does The Eastman Co. originated the commercial manufacture of such films
ally sold its machines at
not make the mere size of a corporation, however impressive, or the exist- many years ago. In 1920 it manufactured and sold 94% of those used in
ence of unexerted power on its part, an offense, when unaccompanied by the United States; but in 1921, owing to competition by importers of
unlawful conduct in the exercise of its power. United States vs. Steel films manufactured in foreign countries, its sales decreased to 81%. Upon
Corporation, 251 U. S. 417, 451. And the fact that competitors may see an agreed statement of facts, and the inferences which it drew therefrom,
proper, in the exercise of their own judgment, to follow the prices of the Commission found, in effect, that thereafter the Eastman Co., with the
another manufacturer, does not establish any suppression of competition or purpose and intent of maintaining its monopoly and lessening competition
show any sinister domination. United States vs. Steel Corporation, supra, In the sale of such films, acquired three laboratories used in making motion
448. And see Cement Mfg. Protective Association vs. United States, 288 picture prints, whose combined capacity exceeded that of all the other
U. S. 688,808.
laboratories east of Chicago, and announced its intention of entering upon
190
THE CHRONICLE
[VOL. 125.
the manufacture of such prints; that this constituted an effective threat
Dissenting Opinion.
of overpowering competitive force which compelled the members of the
I am unable to agree that the Federal Trade Commission, in the performAllied Laboratories—an association of manufacturers of such prints—to
enter into an agreement or understanding with the Eastman Co. that the ance of its duties under the Federal Trade Commission Act, lacks the
members of the Allied Laboratories would use American-made films only, power to order the divestment of physical property or that the decision
to the exclusion of foreign-made films, so long as the company did not in Federal Trade Commission vs. Western Meat Co., 272 U. S. 634, forecompete with them in manufacturing prints, and that the company—which closes our consideration of that question here. In the Thatcher and Swift
continued to maintain its laboratories in readiness for operation—would cases considered in that opinion, the stock of competing corporations had
not manufacture prints in competition with them so long as they used been acquired in violation of Section 7 of the Clayton Act which proAmerican-made films exclusively; that this agreement or understanding hibits the acquisition by one corporation of the capital stock of another
had the effect of lessening competition in the sale of the films in inter- "where the effect of such acquisition may be to substantially lessen comState and foreign commerce and sustaining the monopoly of the company petition." The stock control having been followed by purchase of the
therein; and that its ownership of the three laboratories and their main- physical assets of the competing corporation, the Commission proceeding
tenance in condition for operation, continued to have the effect of inducing under Sections 7 and 11, ordered the offending corporation to divest itself
and compelling the manufacturers of prints to use only the films made by of both the stock and the physical property. In deciding that the Commission had exceeded its authority, so far as the property was concerned, the
the company.
On these and subsidiary findings, the Commission entered an order re- court expressly limited its consideration to the grant of power under Secquiring the defendants to cease and desist from combining and co-operat- tions 77 and 11 of the Clayton Act, Section 11 in terms authorizing the
ing in restraining competition in the manufacture and sale of positive Commission to make an order "requiring such person to cease and desist
films and maintaining the monopoly of the Eastman Co. in their sale in from such violations, and divest itself of the stock held . . . contrary
Inter-State and foreign commerce, by the agreement and understanding that to the provisions of Section 7 . . ." The effect of Section 5 of the
the members of the Allied Laboratories would use American-made films Federal Trade Commission Act, dealing with the different subject of unfair
exclusively, provided the company would not operate its laboratories for competition, was put to one side, the court saying: "This section (rethe manufacture of prints in competition with them, provided they used ferring to Section 5) is not presently important; the challenged orders
and continued to use American-made films exclusively; and by other inci- sought to enforce obedience to Section 7 of the Clayton Act." (p. 557.)
dental means. And the Comunission further ordered that for the purpose of The scope of the decision was thus stated: "When the Commission Instipreventing the maintenance of the monopoly of the Eastmen Co. in the tutes a proceeding based upon the holding of stock contrary to Section 7 of
manufacture and sale of positive films and restoring competitive freedom the Clayton Act, its power is limited by Section 11 to an order requiring
the guilty person to cease and desist from such violation, effectually to
in their distribution and sale, the company should with due diligence sell
and convey its three laboratories to parties not directly connected, or divest itself of the stock, and to make no further use of it." (p. 561.)
It was not held that the Commission under no circumstances could compel
indirectly interested, with it.
the sale of physical property, and there was in fact a clear intimation in
On a petition by the Eastman Co. and the Allied Laboratories for a the opinion that under Section
7 of the Clayton Act the acquisition of the
review of this order, the Circuit Court of Appeals—without referring property after a complaint
had been filed against the corporation for
specifically to the purpose for which the Eastman Co. acquired and main- illegal stock purchases would
not find the Commission powerless.
tained the three laboratories—held, in substance, that the reciprocal agreeSection 5 of the Trade Commission Act, with which we are now conment or understanding between the Eastman Co. and the Allied Labora- cerned, declares unlawful
"unfair methods of competition in commerce,"
tories that their members would use only American-made films in the and empowers and directs
the Commission to prevent the use of such methmanufacture of prints, and the Company would not operate its labora- ods. The Commission
is directed upon finding that the method of comtories for the manufacture of prints, was an unfair method of competition petition under investigation
is prohibited by the Act, to issue its order
which the Con:mission had authority to prevent; but that—one judge dis- "requiring such
person, partnership or corporation to cease and desist
senting—it was not unlawful for the Eastman Co. to equip itself to enter from using such
methods of competition."
upon the business of manufacturing prints, there being nothing unfair in
The powers thus broadly given sharply contrast with the specific enumeits going into this business, and the Commission had no authority to order ration of
Section 7 and 11 of the Clayton Act. As was pointed out in the
the Company to divest itself of the laboratories which it had lawfully
Western eMat Co. case, the Clayton Act prohibits only the acquisition of
acquired. 7 Fed. (2d) 994. A decree was accordingly entered affirmstock and not the assets of the competing corporation, and in terms merely
ing the order of the Commission in so far as it required the Eastman Co.
authorizes an order requiring the corporation "to cease and disist from such
and the Allied Laboratories to desist from their agreement or understandviolations, and divest itself of the stock held. . . ." For that reason
ing in reference to the use of American-made films and the operation of the
alone, the majority of the court thought that the language of these proEastman Co.'s laboratories, but setting aside the order in so far as it
visions was not broad enough to enable the Commission to order the correquired the Eastman Co. to sell its laboratories, and in other incidental
poration to divest itself of the physical assets thus acquired although this
respects.
acquisition aggravated and brought to its final consummation the very
This writ of certiorari was then granted on a petition by the Commisaimed at by the statute.
sion which challenged the correctness of the decree of the Court of ApThe comprehensive language of Section 5 neither invites nor supports a
peals only in respect to the setting aside of so much of the order as renarrow construction. It is general in terms, and in the authorized prequired the Eastman Co. to dispose of its laboratories.
vention of unfair methods of competition the Commission is not limited to
For present purposes we do not find it necessary to determine the quesany particular method of making its orders effective. The Rower does not
tions whether the finding of the Commission as to the purpose for which
any the less exist because the Commission framed the present order in part
the Eastman Co. acquired the three labosatories—based in part at least
in affirmative terms specifying the manner in which the company should
upon inferences from the agreed statement of facts—was correct, and
abandon thc unfair method of competition it found had been practiced.
whether, in any event, it was conclusive upon the Court of Appeals; but,
Nor does the fact that the Commission is not a court of equity lessen the
In the absence of any specific reference to this matter by the Court of power
conferred upon it by the statute. It is of course essentially an adAppeals, we shall assume the correctness of the Commission's finding, and
ministrative agency. Its orders never have the effect of an injunction
proceed, on that assumption, to the consideration of the only other ques- and
are enforcible only by proceedings instituted in the appropriate circuit
tion presented in the retition for the writ of certiorari and pressed in this
court of appeals. Its powers are not enhanced by the circumstance that its
court, namely, whether the Commission had authority to order the Eastman
orders are enforcible in courts having in their own right equity powers. But
Co. to sell and convey its laboratories to other parties.
it is likewise true that it cannot be denied powers wanted by Congress
The proceeding before the Commission was instituted under Section 5
merely because its orders resemble in form familiar equitable decrees. To
of the Federal Trade Commission Act, and its authority does not go beyond make its
want of equity powers ground for limiting those expressly conthe provisions of that section. By these the Commission is empowered to ferred by
the statute is to condemn all the orders ever made by the Comprevent the using of "unfair methods of competition" in inter-State and
mission. Orders compelling the sale of stock, preventing price cutting,
foreign commerce, and, if it finds that "any unfair method of competition"
local price maintenance, exclusive dealing arrangements, boycotting, blackis being used, to issue an order requiring the offender "to cease and desist listing,
disparagement of competitor's wares, misrepresentation, misbrandfrom using such method of competition." The Commission exercises only ing, adulteration,
dishonest advertising, espionage, commercial bribery, coerthe administrative functions delegated to it by the Act, not judicial pow- cion, threats,
intimidation, the use of "fighting brands" or bogus lodeers. National Harness, etc., Association vs. Federal Trade Commission pendents,
to mention only a few of the practices which the Commission
(C. C. A.), 263 Fed. 705, 707; Chamber of Commerce vs. Federal Trade has forbidden, remind
of equitable relief no less than an order compelling
Commission (C. C. A.), 280 Fed. 45, 48. It has not been delegated the the sale
of physical property, the very acquisition and continued
possession
authority of a court of equity. And a Circuit Court of Appeals on a peti- of which
may be the dispensable element in a scheme of unfair
competition to review its order is limited to the question whether or not it has tion.
properly exercised the administrative authority given it by the Act, and
The conclusion seems to me unavoidable, therefore, that
this
caat
cannot
may not sustain or award relief beyond the authority of the Commission; be disposed
of without determining whether the acquisition and retention
such review being appellate and revisory merely, and not an exercise of of the film
laboratories by the Eastman Co., under the circumstances disoriginal jurisdiction by the court itself.
closed by the record, constituted in itself or was a part of or
a step in an
The question here presented is in effect ruled by Federal Trade Com- unfair method
of competition. Until that is determined we cannot say that
mission vs. Western Meat Co., 272 U. S. 554, 561, 563, in which the deci- the Commission
was without power under Section 5 to make any approsion in Federal Trade Commission vs. Thatcher Mfg. Co. (C. C. A.), 5 F. priate order to
prevent the use of such methods.
(2d) 615, and Swift & Co. vs. Federal Trade Commission (C. C. A.), 8 F.
That ruinous competition or the threat of it when the aim
is monopoly
(2d) 595, that were relied upon by the Commission in its petition for the or the suppression
of
writ of certiorari, were reversed by this court. In that case it was held tion of the Sherman competition may be the dominant factor in a violaAct is no longer fairly open to question. But in dethat—although the Commission, having been granted specific authority by termining the meaning
of "unfair methods of competition" it should be
Section 11 of the Clayton Act to require a corporation that had acquired borne in mind that
the Trade Commission's function is to discourage certhe stock of a competitive corporation in violation of law "to cease and tain trade tendencies
before
violations of the Sherman Act have occurred.
desist from such violations and divest itself of the stock held," might re- The advised use
of the phrase "unfair methods of competition" of the
quire the corporation to divest itself of such stock in a manner preventing common law
indicates an unmistakable Congressional intent to confer on
its use for the purpose of securing the competitor's property—it could not, the Commission the
power, subject of course to the judicial review proafter the corporation by the use of such stock had acquired the property vided for in the
Act, to prevent unfair trade practices not included In the
of the competitor, require it to divest itself of the property thus acquired prohibition of the
Sherman Act and of the common law. See Henderson,
so as to restore the prior lawful condition. As to this we said: "The Act Federal Trade
Commission, 36; of, Federal Trade Commission vs. Winsted
has no application to ownership of a competitor's property and business Hosiery Co., 258 U.
S. 483.
obtained prior to any action by the Commission, even though this was
In that part of its order which now remains undisturbed,
and which is
brought through stock unlawfully held. The purpose of the Act was to not questioned
here, the Commission has found and forbidden the
agreeprevent continued holding of stock and the peculiar evils incident thereto. ment between the
Eastman Co. and the association that the members of
If purchase of property had produced an unlawful status a remedy is pro- the association should
use American raw film, of which It appears 94% of
vided through the courts." And they "must administer whatever remedy that used in the
United States is produced by the Eastman Co., to the
there may be in such situation." Distinct reference was there made (p. exclusion of foreign
manufactured film, provided the Eastman Co. would
561) to Section 15 of the Clayton Act where express provision is made for not operate its
laboratories
commercially to produce positive prints in
the invocation of judicial remedies as need therefor may arise.
competition with the members of the association.
So here, the Commission had no authority to require that the company
The majority, not having found it necessary to consider whether the stipdivest itself of the ownership of the laboratories which it had acquired ulated facts established
unfair methods of competition because of the Comprior to any action by the Commission. If the ownership or maintenance mission's supposed
want of power, any extended review of them here Is
of these laboratories has produced any lawful status, the remedy must be uncalled for. But the
evidence
is sufficient to justify the inference drawn
administered by the courts in appropriate proceedings therein instituted.
by the Commission that suppression of competition in the sale of foreign
The decree of the Circuit Court of Appeals is accordingly affirmed.
films, consummated by this agreement, was accomplished, in part at least,
JULY 9 1927.1
T-FrE CHRONICLE
191
by the acquisition and retention of these laboratories as a constant and mileage constructed in
the United States in 1924. 26.6% was built in theseimminent threat to members of the association of competition in the busi- Ohio Valley States, while
in 1925 almost 30% of the total additions to hardness field they occupy.
surface road mileage occurred in these States.
Superficial examination might suggest that the respondent's court of
While, as 1 will show you in a few minutes, there occurred no substantial
conduct involves nothing more than the innocuous process of extending its change during these years in the extension or
reconstruction of the tracks
business to include an allied trade, but the matter may not be thus lightly of interurban railways, there was a tremendous
increase in the mileage of disposed of. We may lay aside the question whether one already possess- first-class hard-surface roads furnishing alternative
competitive routes
ing monopoly powers in one field, especially where as here there is no with the interurbans through the use of private automobiles
and (or) motor available substitute for his products, may make use of his strategic position busses operating thereover.
to dominate all phases of the industry from production to consumption.
Track Standards Must Constantly Improve.
For here it seems fairly inferable from the stipulated fact that there was
The standard oftrack construction and maintenance,which would provide
no intention of permanent expansion. The Eastman Co. threatened to engage in temporary competition with the manufacturers of prints in order a reasonably satisfactory transportation service in the days of dirt and poor
to attain its objective—the suppression of foreign competition in raw film. macadam roads and horse-drawn bebicies, will not suffice at the. present
When that was attained, the laboratories were allowed to remain idle, and time in competition with smooth hard-surface roads and private automobiles
the assumed advantages to the public from permanent competition were whose riding qualities are being improved from year to year with astonishing
lacking. I have no difficulty in concluding that this threat of temporary rapidity. It is not an accident that the automobile manufacturers have
competition was unfair to the Eastman Co.'s purchasers and to its foreign spent so much time, energy and money in perfectir g the riding qualities of
competitors, and was an unfair method of competition within the meaning their cars—both the low-priced light car and the more expensive large
of Section 5. Compare Tuttle vs. Buck, 107 Minn. 145; Dunshee vs. Stand- automobile—through the development and general use of balloon tires:
ard Oil Co., 152 Ia. 618, 626-627; United States vs. Corn Products Refin- shock absorbers, longer and better designed springs,improved principles of
hig Co., 234 Fed. 964, 984, 1010; United States vs. Central West Pub- spring suspension, reduction of unsprung weights in automobile chassis and
lishing Co., Decrees and Judgments in Federal Anti-Trust Case, 359, 360, other like improvements—all In response to the insistent, popular demand for362 ; Thomson vs. Cayser, 243 U. S. 66, 87; for cases, which although not a more comfortably riding car. This demand for improved riding qualities
has become so inexorable that the most widely distributed cheap-car model
exactly in point, lend support to this view.
It would seem that that part of the order which still stands, forbidding of all is being driven into oblivion.
What have the interurban railways done during a like period of time to
the agreement for the suppression of competition, is futile if the Eastman
Co. may retain the laboratories as a threat to compel the manufacturers meet the public demand for more comfortable servicee With a few notable
of prints to do that which they could not lawfully agree to do. In my view, exceptions they have done little or nothing. Their tracks are in no better
the decree above should be reversed, and the order of the Commission condition, and in many instances they are in worse condition,than they
were a decade ago. The "Electric Railway Journal" has for some years
upheld. [Justice Brandeis joins in this dissent.]
made an annual compilation of data concerning the mileage of track extensions, track abandonments and track reconstruction. Confining ourselves.
the matter of track reconstruction, as compared to c.ompetitive highway
William L. Butler of Cincinnati Hamilton & Dayton Ry. to
reconstruction, and first calling your attention to the fact that the first data
on Relation of Track Maintenance to Revenues.
with reference thereto was printed by the "Journal" in 1917, we find that
were reconstructed 5,637.78 miles of track in the United States in the
In discussing, before the midsummer meeting of the there
ten years from 1917 to 1926, both inclusive. According to the Federal
Central Electric Ry. Association at Detroit on June 29, Census of 1922, the total mileage of track operated by electric railways
"The Relation of Track Maintenance to Revenues," William was 43,931.80 miles. The change in track mileage from 1922 to 1926 was
not material, the extensions, reported by the "Electric Railway Journal,"
L. Butler, Vice-President of the Cincinnati Hamilton & approximately
offsetting the abandonments. It would thus appear that inDayton Ry. Co. expressed it as his opinion that a large the decade ending with 1926. 12.8% of the total track mileage of the electric
country was rebuilt or approximately 1.28% per annum on
of
railways
the
number of the electric railways are operating with. a subthe average. At this rate it would require
78 years to rebuild
normal standard of maintenance—a maintimance too low all of the electric railway track operated approximately
at the present time.
to produce the maximum attainable net return. In his
Interurban Track Reconstruction Shockingly Sub-normal.
concluding remarks Mr. Butler advanced the,view that "the
The first data reported by the "Electric Railway Journal" for interurban
foundation of good interurban service is gbod track, and track mileage reconstruction (as distinguished from city track mileage
was for the year 1919. In the eight years from 1919 to
that without good track it is, generally speaking, impossible reconstruction)
1926, both inclusive, there were reported to have been reconstructed '
to make a financial success under present conditions of the 1,254.58 miles of the total interurban track mileage of 17,807.93
miles
operation of interurban railways." In part he had the fol- reported by the 1922 Federal census. The annual reconstruction during
period averaged 0.88% per annum. At this rate it would require
this
lowing to say:
over 113 years to reconstruct all the interurban track mileage operated in
One economic problem of the electric railway is to reduce the cost of track 1922 without regard to the fact that in this period of reconstruction
of
maintenance to the minimum consistent with true economy, by which is over a century it would be necessary to rebuild some of
the mileage remeant not only the lowest attainable cost for the proper maintenance of constructed in the earlier years thereof.
track, considered by itself, but especially as regards the correlation of that
It may be that the data and comparisons above set forth are advisory •
cost to attainable net revenues. We all recognize that it would be poor rather than mathematically accurate. It is quite possible
that this data.
economy to maintain track at a standard too low to produce a maximum although compiled by the "Electric Beltway Journal" with
care and thornet return and conversely it follows that a management, if challenged, oughness, does not reflect all track mileage reconstructed.
Even though
would have difficulty in justifying a standard of maintenance higher than the error were considerable, the showing is so
shockingly inadequate as
would be warranted to produce the maximum net return, all things being to leave no doubt in anyone's mind that most of the
interurban electric
considered.
railways are wearing out their tracks without adequate provision for theI am convinced from a number of years of contact with this problem reconstruction thereof. It will, of course, be
argued that interurban track
and rather extensive observation of the electric railways of the country— differs from city track in that it is not rebuilt in its entirety,
but is usually
particularly the interurbans, to which I will largely confine myself in this renewed piece-meal year by year. This piece-meal
reconstruction work
discussion—that a large number of the electric railways are operath g at consists almost entirely of the renewal of ties, ditching
and lining and
the present time with a sub-normal standard of maintenance, or, in other surfacing, which is in the nature of track maintenance.
If the data were words, a standard of maintenance too low to produce the maximum at- available, we would find that very little ballast was renewed
on the intertainable net return.
urbans of the country as a whole and that rail renewals were an insignificant
percentage of the total rail tonnage in the tracks. All that the interurbansTrack Maintenance Standards Should Change with the Times.
The reasons for this situation are not hard to find. The financial vicis- are doing, is to maintain, after a fashion, the same track which was consitueds of the electric railways during the last decade are too well known to structed 20 or 30 years ago. In other words, the Interurban highway is
all of you to require any extended comment from me with reference thereto. at best the same highway which was built and operated In old Dobbin's
In everyday parlance, most companies are too poor, or feel themselves too day and which is fighting a losing battle in competition with concrete and
poor, to maintain a very high standard of maintenance. In addition other hard-surfaced roads.
thereto we have not all realized that proper standards of maintenance are
Most Interurban Track Progressively.Deteriorating.
not exact engineering determinations but vary from one decade to another.
As a matter of fact, the interurban highway of. today is not as good as
depending upon conditions which to a large degree are not directly conit was twenty years ago. Insuffienct maintenance and neglect, whether nected with the electric railway industry.
Most of our Interurban railroads were built In the last few years of the forced by inexorable economic conditions or war conditions, has irreparably
nineteenth century and the first decade of the twentieth century. In damaged a large percentage of the rail. It has become battered and surface
these years their competitors were the steam railroads, offering in most bent and in most cases cannot be put into satisfactory condition except
by the complete renewal thereof. The situation as regards such trackagecases infrequent service—usually rendered with obsolete passenger equipis quite similar to that confronting the highway engineer called upon to
ment relegated from long-distance main line service—and charging relarestore
to good condition a neglected hard-surfaced road full of holes, waves
tively high rates of fare; and the old horse and buggy driven over dusty
and depressions, which makes it resemble a washboard. Under such cirdirt or macadam roads in indifferent condition. To all intents and purcumstances the only satisfactory solution is the entire reconstruction of the
poses the only real competitor was the steam railroad, which is most sections of the country made no very great effort to retain the relatively short- highway. Does it not follow with equal force that the only satisfactory
method of restoring a substantial portion of the interurban track mileage of
haul traffic.
the country is the complete reconstruction thereof?
Interurban Tracks vs. Modern Highways.
Turning for a moment from the condition of interurban railway tracks
To-day we are operating under entirely different conditions. The horse to that of the rolling stock operating thereover,
, according to statistics
and buggy has given way to the private automobile. The dirt or poor compiled by the "Electric Railway Journal," there were built during the
macadam road has been replaced by modern hard-surfaced highways. A twenty years from 1907 to 1926. 10,044 interurban cars, of which 2.705
new competitor, the motor bus, operating over these improved highways. were constructed during the last decade. From the same authority we
has sprung up and in many sections offers formidable competition to the learn that there were all told 14.752 cars in interurban service at the end
of the year 1924. It thus appears that slightly over two-thirds of the interinterurbans.
The rapidity with which the hard-surface road mileage of the country urban cars of the country have been built within the last twenty years.
has been extended is astounding. According to the data compiled by the Only 18.3% of the interurban cars, however, have been constructed during
Bureau of Roads of the United States Department of Agriculture, there the last ten years. It is very clear that the replacement of interurban car were in the United States at the end of 1925, 521,915 miles of hard-surface has fallen below a reasonable level during the last decade. At the rate at
roads, of which 142,377 miles,or 27.3%,were situated in the States of Ohio. which new cars were constructed during the last decade, it would require
Kentucky, Indiana, Illinois and Michigan, which, roughly, comprises the almost fifty-five years to replace the interurban passenger equipment now
section of the country included in the territory of the Central Electric in 11130.
Two Fundamental Reasons for Interurban Failures.
Railway Association. Within the Central States just mentioned, there
In the light of these comparisons, which seem to indicate that interurban.
were constructed in 1924, 7,592 miles of hard-surface roads: in 1925 the
construction of hard-surface road mileage in these States was 15,915. I track reconstruction is proceeding upon the basis of a 113 year cycle and that
have not been able to locate data concerning highway construction in this interurban car replacements are being made on the basis of a 55 year cycle,.
section in 1926. The significant fact is that 23,057 miles out of 142,377 assuming a stationary volume of traffic, is there any wonder that the public
miles of hard-surface roads in these Central States, or over 16% thereof, is being weaned away from the use of the interurban as a means of passenger
were built during the years 1924 and 1925. Of the total hard-surface road transportation? All too many of us are in the position of a.merchant doing
THE CHRONICLE
192
business with fixtures which were modern in his father's day and selling
merchandise which was in vogue in the days of the bustle, long trains and
leg-o'-mutton sleeves.
New Cars Not Alone Sufficient.
Many companies are deluding themselves with the idea that all that is
required to turn proverty into prosperity IS to purchase new cars. They
overlook the fact that the foundation of good service is good track. New
cars are quite necessary, but they do not constitute a panacea for all ills.
A new car will prove no more satisfactory to the travelling public when
operated over poor track than a 1927 automobile if operated over poor
highways full of holes and ruts. . .
The interurban railway will have the same experience as the bus operator
who endeavors to make high speeds over poor highways and who soon
finds that whatever apparent profit be has made has been offset in whole or
In large part by the excessively high rate of depreciation upon his bus. In
other words, we must have better track standards in the future than we have
had in the past, entirely without regard to the matter of gross revenues if
we are to get a reasonable span of life, at reasonable maintenance costs,
out of the modern light-weight type car.
Three Classes of Interurbans.
Viewing the interurban situation as a whole, such properties may be
divided into three classes, first, the hopeless cases, which will drag out their
miserable existence to an inglorious end, because there is no economic
Justification for their continuance. Many of these properties should never
have been built. They were constructed in the period of excessive enthusiasm as to the possibilities of the interurban or, in some cases, if the truth be
told, for stock Jobbing reasons. As regards this type of property the
expenditure of new capital and effort in an attempt to establish them upon a
paying basis is bound to be a thankless and fruitless operation.
If we exclude such mileage, the balance can be divided into two main
groups,first, those properties whose field of economic usefulness is narrowly
circumscribed in the sense that no matter how fine the track and equipment
might be. the amount of business which could possibly be developed is so
small that great care must be exercised in the investment of additional
capital for reconstruction and betterments. Such properties are on the
borderland between inevitable failures and those which can be made
successful.
Prerequisites for Success.
Finally, we come to those properties which have a real field of usefulness.
A large percentage of the interurban mileage in the country is in this last
mentioned class. A large proportion of these properties at the present time
are making very disappointing financial showings. The question which is
uppermost in our minds is whether the results would Justify whatever
sacrifice might be involved to the present owners, if these properties were
modernized and thoroughly rehabilitated. With properties which have
potentialities there would appear to be no question that every dictate of
self interest prompts their owners thoroughly to rehabilitate and modernize
trackage and to re-equip the properties with equipment and power facilities
of the most modern type. . .
Track Rehabilitation Ezterminates Bus Competition.
An illustration of the effect of better track standards upon traffic is furnished by the history of the property now owned by Cincinnati. Hamilton
and Dayton Railway Company. During the years prior to 1918 this
property had been allowed to fall into a most deplorable physical condition
—in fact it is difficult to imagine a property in worse shape. Beginning in
1920 the earnings of the property were plowed back to catch up on deferred
way and structure maintenance. The property was largely retied; much
light rail was replaced with heavier rail and some new ballast was placed:
a large proportion of the poles carrying transmission and distribution lines
were replaced and bridges,trestles and culverts were put into good condition.
While this work was in progress bus comp etition began in the most virulent
form. The steady improvement in the physical condition of the track—
the cars and other facilities remaining without charge—so increased the attractiveness of the interurban, however, as to bankrupt or otherwise force
the bus competitors operating between Dayton and Hamilton to discontinue service. This achievement, which was accomplished during Mr.
Martin Ackerman's capable administration of this property, was peculiarly
notable because there are few sections of the country which,from the standpoint of population and geography, are better suited for interurban bus
operation than the district here in question.
C. R.& D.'s Track Maintenance Policy.
It may interest you to know that within the last few hours Cincinnati
Hamilton and Dayton Railway Company has put into service new interurban and urban types of equipment and in preparation therefor, and as
for the
means of further stimulating business, has been steadily at work
interurban
past year and intends to continue progressively to improve its
favorably
and city track standards to.the end that it may be in a position
that this
to compete with parallel hard-surface highways. We feel confident
revenues
in
increase
passenger
substantial
expenditure will be productive of a
—resulting from the constantly increasing attractiveness of our serivce and
the greater use made thereof by the people of the Miami Valley. During
than in
the calendar year 1926 passenger revenues were over 6% greater
1925.
direction
The interurban properties which have made progress in the right
to the
during the last few mire have, one and all, given proper attention
establishment and maintenance of high track standards. The only propclass
first
erties which are successful are those which are modern and in
Oondition.
Billion and a Half Dollars Spent for Road Building in
United States in Fiscal Year Ended June 1925.
More than a billion and a half dollars was spent in the
United States for road building and manitenance during
the fiscal year ended in June 1925 according to a study just
completed by the National Industrial Conference Board, 247
Park Avenue, New York. Whereas, says the Board, less
than 20 years ago expenditures for road building were still
a negligible item in Governmental finance, our present
anneal road bill amounts to more than one-sixth of the
entire public budget, and is exceeded only by our Governmental expenditures for education and protection. Under
date of July 4 the Board adds:
The development of the country's roads during the past quarter century
eloael,y reflects the revolution in the field of transportation brought about
[VOL. 125.
by the automobile and its rapidly extended adoption as a means of carrying goods as well as passengers. About 1,000,000 miles of highways have
been built since 1904, when the total roadway mileage in the United
States amounted to 2,151,379, only a small proportion of which was surfaced, traffic consisting principally of short distance market hauling and
a few venturesome bicyclists. During the next five years less than 50,000
additional miles of roadway were built, but between 1909 and 1914 the
advent of the automobile made itself felt, 250,000 miles of new roads
being added. In the next seven years, although they include the war years,
when State and local Government budgets were held down to the minimum, 500,000 miles of new roads were added.
Perhaps more striking than the increase in total mileage of roadways
during this period was the change in the character of the new roads, influenced primarily by the automobile traffic. Winding, often ungraded
and rutted, albeit picturesque roads, have rapidly been giving way to
hard surfaced, wide and straight highways, particularly during the past
few years. While in 1904, only slightly over 7% of the total roadway
mileage was graded and surfaced, and slightly over 10% by 1914, more
than 17% of the much increased total mileage was graded and surfaced in
1926, the Conference Board's study reveals.
The immense volume of long distance motor traffic that has developed
during the past ten years, however, also has increased the necessity of a
well-linked highway system, connecting important centres and fed by the
smaller market roads radiating from local centres into surrounding rural
territory. It is this phase of highway development which, in the light of
the Conference Board's study, has caused marked changes in the control
and financing of road building and maintenance, shifting the burden
gradually from the local Governments to the State and, to an extent, even
to the Federal Government. While in 1904, the Conference Board finds,
more than 96%, or nearly all of the current highwa: revenue, which then
amounted to only $75,965,995, was raised by local Governments, who also
floated all of the highway bonds issued at that time, the State Governments
in 1925 had become so active in the field of highway building and maintenance that they raised more than 37% of all highway revenue, while the
local Governments raised only little over half of the total. The ederal
Government meanwhile had interested itself to the extent of contributing
about 10% of the total. Nearly half, or 49.5% of all highway bonds
floated in 1925 were issued by State Governments.
While the figures cited summarize the development of read building in
the United States as a whole, wide variations in the development in different States and sections of the country tire revealed by the Board's report. The vast change in transportation methods and road utilization
caused by long distance automobile traffic is again strikingly reflected in
the great stimulus given to highway construction in the more sparsely settled Mountain and Western States during the past few years, while the
more densely populated Eastern States, already well supplied with roads,
have concentrated more on improving existing roads, even abandoning many
older roads made obsolete by the more systematically linked modern highway system demanded in this age of the automobile.
R. H. Aishton, President American Railway Association, on the Efficiency of the Railroads.
The railroads of the United States and Canada have made
greater strides in the past four years in the development of
their mechanical facilities than ever before in the history
of the railroads, R. H. Aishton, President of the American
Railway Association on June 7 told the annual convention
of the Mechanical Division of the American Railway Association at Montreal, Canada. "As a result of this development," said Mr. Aishton, addressing the opening session,
which convened at the Windsor Hotel, "the railroads of
North America are being operated with more economy
and with greater efficiency than ever before. Corolalry
to this, the public in both the Dominion of Canada and the
United States is receiving the best transportation service
ever accorded them by the rail carriers in those countries.'
Mr. Aishton then proceeded as follows:
The railroads in 1926 handled the greatest freight traffic in their history
but they not only did so without car shortage or other transportation difficulties but also with an ownership of fewer freight cars and locomotives on
their lines than in the year before. This year they own still fewer cars and
locomotives, but due to the fact they are constantly replacing obsolete
equipment with cars and locomotives of more modern type and with greater
transportation Capacity, and the fact both freight cars and locomotives
are being used more efficiently than ever before, the American Railway
Association believes it possible to handle the traffic of the United States
for some time to come with at least 100,000 fewer freight cars than are now
owned by the railroads. Of course, this recommendation is based on the
assumption that there will be a continuation of the present economical use
of freight cars and also an increase of one ton in the average load per car
which, with public co-operation, can be easily attained.
This recommendation constitutes only one of the many concrete results
which have been attained by the railroads due to the large capital expenditures which they have made in the past few years in order to insure the
maintenance of adequate transportation.
Not content with what has already been accomplished, however,the railroads are endeavoring to bring about still further improvements with a view
of realizing still greater efficiency and economy in operation. This is
prompted by the fact that in addition to what has already been accomplished by them in the way of savings, they must work for further economies which must come mainly from improvements in operation brought
about largely by improved mechanical devices.
Numerous railroads, for instance, have found that electrically controlled
switch machines at remote points will not only facilitate the movement
of trains but will also bring about savings both in labor and in train operation
which alone will pay for themselves within approximately three years.
By the development of automatic signals and the elimination of delays in
terminals, the movement of trains has been exepdited without the necessity
for additional large capital expenditures. Stronger and better freight cars
are being constructed to-day than ever before with a view of increasing
their capacity without increasing their weight. This is shown by the
fact that freight cars now being built by the railroads and which have
capacity of 50 tons, weigh less than the 40 ton capacity cars which the
Railroad Administration built some years ago.
The trained scientist and the mechanical engineer are now playing a
greater part in the operation of the railroads than ever before. Housed
in laboratories, often miles from the main lines of railroads, they are con-
JULY 9 19271
THE CHRONICLE
193
ducting extensive research work designed to bring about still further
Improvements and efficiencies in the operation of the railroads. For the
first time in the history of any railroad In the world, the railroads of the
United States and Canada, through the American Railway Association,
are conducting one of the most elaborate and complete tests of airbrakes
ever instituted In the hope of bringing about still further Improvements in
the airbrake systems now in use. These tests are being made at Purdue
University where tests have also been started within the last few days In
an effort to determine what improvements can be made in the construction
of draft gears, which is the mechanism behind the couplers on each car
that takes up the shock due to the starting or stopping of trains. Elaborate
research work Is also being done with a view of devising increased safety
devices on tank cars, which, for the most part transport gasoline, highly
inflammable oils and corrosive acids. The railroads and manufacturers
are also endeavoring to reduce further the possibility of broken wheels and
rails and to reduce the stress on rails due to the use of heavier locomotives
and cars.
The safety and comfort of passengers is also a subject that is under constant study by the railroads. One tangible result is the fact that the lighting of passenger cars has been developed to the point that it is now easier.
due to improved light facilities in railway passenger cars, to read a newspaper while traveling sixty miles an hour than it is in most homes.
Report of Philadelphia Sesqui-Centennial Exposition
Shows Deficit of $206,987—Effect of Unfavorable Weather Conditions.
What is termed the complete financial report of the
Sesqui-Centennial Exposition held at Philadelphia last year
was made public on June 20 by E. L. Austin, Director-inChief and Joint Receiver with Francis Shunk Brown. Total expenses of $18,423,126 are shown in the report, as compared with total income of $18.216,139—resulting in a deficit
of $200,987. According to Messrs. Austin and Brown, receivers, this deficit will be wiped out with receipts from
salvage on buildings and equipment of the Exposition. Of
the receipts, $10,074,212 consisted of donations—$9,060,000
having been contributed by the City of Philadelphia, $1,000,000 by the Federal Government and $14,212 by the public.
The following regarding the report is taken front the PhilaThe eighth annual convention of the Mechanical Division delphia "Ledger" of June 20:
of the American Railway Association was opened with an
Pointing out that the Sesqui-Centennial had less money for its conaddress of welcome by Mayor Martin of the City of Montreal. struction and maintenance than any of the other large expositions and that
He was followed with an address by the Right Hon. George It had to meet greatly increased costs of material, supplies and labor and do
the job in less time. Mr. Austin declared that its affairs would be closed in
P. Graham, P.C., former Minister of Railways and Canals a more satisfactory manner than other world fairs.
for the Doininion of Canada. L. K. Sillcox, Chairman
Opening Was Not Postponed.
of the Mechanical Division and General Superintendent of
"When other expositions confronted the difficulty of getting ready on
Motive Power of the Chicago Milwaukee & St. Paul Ry., time they postponed their opening," the report says. "Our Exposition
presided. At a banquet at night at the Windsor Hotel to adhered to its original scbedule, although the task required almost superhuman effort. In spite of all these handicaps, there was finally produced
the principal speakers were Sir Henry Thornton, President an exposition
of surpassing attractiveness, of great educational value and
of the Canadian National Rys., and Grant Hall, Vice- wonderful interest in many branches of human endeavor, the memory of
which
will
linger
long with those who profited by the opportunity to iSit
President of the Canadian Pacific Ry. The toastmaster
it and to become acquainted with its many beauties."
was George E. Smart, Chief of Car Equipment, Canadian
Special attention was given by Mr. Austin to what he terms "Sesqui
National Rys. and Vice-Chairman of the Mechanical weather." Be pointed out that, ac_ording to the United States Weather
Bureau
data. only 50 of the 184 days the Exposition was open were listed
Division.
Louis Guenther Looks For Enactment of Legislature in
New York for Constructive Regulation
of Investment Trust.
Because of the large number of investment trusts being
organized in New York State or operated here under charters
of other States, the New York legislature is expected to
-enact legislation at the next meeting aiming at constructive
regulation of these trusts in the interest of both well-managed
trusts and investors in their securities, according to Louis
Guenther, publisher of the "Financial World." There was
a great deal of discussion of this subject of regulation of
investment trusts at the last session of the legislature but
no definite action was formulated. Mr. Guenther recognizes
the value of carefully considered measures designedtoproteet
the trust and its security holders. In his comments he says:
As they are generally operated, our trusts copying the British
prototype
Invest the funds of their subscribers in both stocks and
bonds and do not
confine themselves to any particular type of securities. Their
managements
believe that there are attractive opportunities for the employment
of capital
in various fields of operation and they are constantly shifting
their securities. The handling of such a trust gives those In control the widest
latitude
and liberty for exercising their judgement. That very latitude and'liberty
of action should strongly suggest to participants In such trusts that the
main
appeal to them is a strong assurance of an excellent management.
The
investment ofsuch authority in the hands of inexperienced
judges of Investment values and speculative opportunities could soon run
the business on
the rocks, however honest might be their intentions.
In a few years at our present rate of growth, our
Investment trusts In
this country should outnumber those abroad, because, as the
investors'
demand for the diversification of their funds increases,
more avenues will
be opened for the absorption of investment trust securities.
Broadly
speaking, a well managed, successful Investment trust
provides a more
Intelligent method of spreading capital risk, especially
for the smaller
investor than he can provide for himself with the limited funds
under his
Control.
Diversified as are the opportunities in investment trusts,
diversification alone is not responsible for the financial
success of this type of business, and there must exist also the
ability to make the proper selection of securities in whichthe
trust makes its investments, he says. Mr. Guenther
enumerated five major classifications of investment trusts,
the so-called British trust, bankers shares, investment
finance, investment management companies and common
law corporations and companies organized under the Massachusetts statute. Massachusetts seems to be the only
American commonwealth which has passed special legislation covering the operation of this type of business. It is
because of the large number of trusts being organized in
New York State that Mr. Guenther believes that the legislature will enact laws establishing a proper basis for regulation.
The diversification represented in the investments of the
trusts that have been organized to date, as pointed out by
Mr. Guenther, is one of the notable aspects of the present
investment trust movement in th's country. The effect of
this diversification is said to provide an investment fitting the
needs of both large and small investors.
as clear. Rain was recorded on 107 days, and the remainder of the nonclear days were cloudy or partly cloudy.
-The very favorable location of Philadelphia in virtually the centre of
a population of 25.000,000 within a few hours' reach of the Exposition fully
justified the expectations of a very large attendance and, consequently,
larger receipts from admissions, concessions, &c.," Mr. Austin said.
The unfavorable weather, he pointed out, was In great measure to blame
for the low attendance.
Built in Era of High Prices.
Construction costs were more favorable than they appear on their face
when compared with other Exposition costs, because the Sesqui-Centenn
ial
was the first American international exposition to be held since the postwar era of high prices of material, the report seta out.
"The history of American expositions preceding the Sesqui-Centennial
was uniformly one of serious financial difficulties encountered despite
every effort to avoid and overcome them," Mr. Austin said. "At the close,
of each one there remained unrepaid large amounts of public funds and
subscriptions."
The Sesqui Director-in-Chief presented a summray of receipts and expenditures of the San Francisco,the St. Louis and the Chicago expositions.
Congress Granted Only $1.000,000.
"Congress made grants of $2.500,000 and 55.000.000, respectively, to the
Chicago and the St. Louis expositions, besides lending $4,600,000 to the
St. Louis Exposition. But to the 150th anniversary of the Declaration of
Independence (the Sesqui) it saw fit to grant only $1,000,000. the purchasing power of which was far less than the same amount would have
represented at the time of the other expositions.
"The appropriation of $9.060.000 by the City of Philadelphia to the
Sesqui-Centennial Exposition shows a favorable comparison with the
donations of other cities to their expositions. In the case of the SesquiCentennial Exposition, the amount of public subscription was somewhat
lower than in the (-we of the other expositions.
"On the purely financial side, it may be pointed out that in spite of widely
circulated impressions to the contrary, Philadelphia's Sesqui-Centennial
Exposition's financial balance sheet shown only 5206.987.17 as expenses
In excess of its income,and there is every reason to believe that this amount
will be realized from the salvage of the property of the Exposition, leaving
it finally in the position where its total liabilities will have been balanced
by its assets.
Aimed to End with Surplus.
"With the past experiences of expositions in mind, the Sesqui-Centenn
ial
Exposition Association determined so to order its affairs as to keep within
the limits of its financial resources and to present. if possible,
at its close
a surplus instead of a deficit, with all public subscriptions repaid
in full
with interest.
"In accordance with this purpose, a system of budgetry
control over all
propriations and expenditures was inaugurated, including the requirement
that all appropriations and expenditures be approved
by the Executive
Committee of the Board of Directors and by the board itself.
The nationally known firm of Lybrand, Ross Brothers & Montgomery
was retained as
outside independent auditors by agreement between the
director-in-chief
and Drexel & Co., the treasurer of the association.
"Rapid progress was made In the early months of 1926 in
the preparation
.of the Exposition grounds and the erection of the main
buildings. At this
time expenditures could be and were kept within the
limits of the finances
of the association. It bee-me apparent early in
April, however, that
much greater progress would have to be made if the
Expositien were to be
ready on the opening date. May 31. Accordingly,
orders were issued to
push the work with all possible speed, and the number of
workers engaged
In the various construction activities Was greatly
augmented.
Haste Increased the Costs.
"The result was that, while the completion of the
Exposition was materially expedited, the costs were likewise very much
increased, exceeding all
previous estimates. By the end of May the
association found itself in
urgent need of additional funds to meet its bills for
construction and development work and to pay its current operating
expenses.
"After the opening of the Exposition the City of
Philadelphia made an
appropriation of 52.000.000 by ordinance approved
June 28 1926, in
addition to what had already been appropriated.
The money was not
made available until some time later, however,
payments to creditors of
the association being in the meantime deferred.
194
THE CHRONICLE
"Although the executives of the association used every means to curtain
expenses and to avoid the incurring of obligations beyond such as were
absolutely required, the financial condition grew worse through the remainder of the Exposition period.
Additional Appropriation Made.
"After much study as to the best means of meeting this situation and
paying the creditors, an additional appropriation of 55.000.000 was made
by the City of Philadelphia by ordinance approved Dec. 17 1926. Question
as to the authority of the city to pay outstanding obligations from this
appropriation resulted in the passing of an enabling Act by the General
Assembly of Pennsylvania specifically granting such authority.
"Before there was an opportunity to pay the creditors under the foregoing authority a taxpayers' suit was brought to prevent the use of the
city's funds for such a purpose. Shortly afterward, due to the fact that
a number of creditors had brought suit, a nequity receivership was applied
for and granted by the United States District Court under date of April 27
1927.
"Francis Shunk Brown and E. L. Austin, director-in-chief Of the Exposition, were appointed joint receivers. Under this receivership the collection of all unpaid installments on participation certificates, exhibotors'
contracts and other accounts receivable is being rushed. Such further
action is being taken as will, with the final salvaging of the property and
the release of the city appropriation to pay thee reditors of the association,
close its affairs in.such a satisfactory manner that it will go into history
with a better record than the average previous American international
expositions as to the total amount of money expended and not repaid.
"The following tables review the financing of the Exposition and present
the essential financial statements of the association as of April 23 1927.
when the receivers took charge, together with such summaries of the
Items appearing in the statements as have been thought to be of general
interest. The complete details are on file with the books and records
of the association."
Comparative figures given:
INCOME AND EXPENSES TO APRIL 23 1927.
Ineorne.
Donations:
$9,060,000.00
City of Philadelphia
1,000,000.00
Federal Government
14,212.84
Public
$10,074,212.84
Total
$2,937.684.55
Subscriptions and dues
1,406,890.31
Sale of exhibit space
2,405,991.85
Admissions to Grounds
696,212.36
Concessions
288,652.66
Association special events and operations
112,419.00
Premium on sale of commemorative coins
47.533.28
Miscellaneous
199,695.23
Expense abatement
46,847.40
Salvage sales
Total
Expenses.
Construction and development of projects
Land improvement
General equipment
Departmental expenses
Other expenses
Special events
Association amusements and enterprises
Uncollectible accounts written off
Interest on loans
Cash shortage
Allowances to concessionares
Reserved for =collectible advances
$18,216,139.48
$8,766.946.73
1,656,162.98
405,399.72
5,117,927.91
379,758.78
1,815,926.37
6,010.89
130,460.68
6.725.58
2,568.03
383.95
134.855.03
$18,423,126.65
. Total
Expenses In excess of income, without giving effect to an amount to
be realized from salvage, which, if sold at favorable prices, should
$206,987.17
more than offset this excess of expenses
Balance sheet April 23 1927:
Assets.
$45,660.51
Cash on band in banks
5,019,233.48
Unexpended appropriations from the City of Philadelphia
Accounts receivable:
Exhibit space contracts
Participation certifitatee
Miscellaneous
[Vol,. 125.
brought the receivership petition before Judge Thompson
on Apri 23; the association joined in the petition, with a
view, it was said, to facilitating the payment of outstanding
claims.
The closing of the Exposition was noted in these columns
Dec. 25 1926, page 3269.
Annual Meeting of Bond Club of New York—Income
from "Bawl Street Journal"—Election of
Officers.
At the annual meeting luncheon of the Bond Club of New
York on June 21, President Whelpley in referring to the
financial situation of the club, stated that last year the
"Bawl Street Journal" had contributed to the club's income
a net amount, In round numbers, of about $9,000. President
Whelpley added:
In 1925 we had an income, exclusive of the "Bawl Street Journal" and
Investment operations, of 15,551. In 1926 we had an income of $20,519.
There is an increase of approximately $5,000. Our disbursements, exclusive of investment operations and "Bawl Street Journal" expenses in 1925,
were $16,400 in round figures. In 1926 and 1927, $16,900 in round figures,
or an increase of about $500. So that we have a net increase in income of
about $4,000, which is due, of course, to the fact that we have increased
our membership. The cost of the luncheons in 1927, eight luncheons, was
$7,303, and in 1926, seven luncheons, the cost was $6,659. The cost of
the Field Day this year was $7,010, including prizes. Last year it $6,725.
5e, 19,000 4s and 10,000 of various
During the year we purchased 5,000 41/
legal bonds. We sold 19,000 of second bonds and 10,000 of thirds, so that
we increased our investment fund by a net amount of $5,000.
The following are the officers elected: President, William J. Minch; Vice-President, Robert E. Christie Jr.; Secretary, Charles B. Stewart, and Treasurer, Benjamin D.
Mosser. Members of the Board of Governors, to serve
three years; Edward N. Jessup, Mason B. Starring Jr., and
Mr. Whelpley. The guest of honor at the luncheon was
Benjamin M. Anderson Jr., of the Chase National Bank of
New York, who addressed the gathering on "Types of Social
Radicalism."
Presentation of Gold Medal to Adolph Lewisohn upon
Occasion of Celebration of Tenth Anniversary of
Thrift Movement.
In recognition of the service which Adolph Lewisohn has
given during the past ten years as Chairman of the National
Thrift Committee of the Y. M. C. A.several hundred friends
gathered at his country estate at Ardsley, N. Y., Saturday
afternoon, June 11 to extend congratulations to Mr. Lewisohn for his interest and devotion in this work and to celebrate the Tenth Anniversary of the founding of the Movement. The influence of this movement has reached many
countries of the world. National Thrift Week which begins
Jan. 17, Benjamin Franklin's birthday, has become a national institution in America during the ten years of Mr.
Lewisohn's leadership. A number of prominent Eastern
bankers took part in the event. J. Robert Stout, a leader
the development of jublic school savings, Chairman of
in
$242,390.33
Total
Advances:
The outstanding
$129,855.03 the committee on arrangements, presided.
Nuernberger Hauptmarket
129,855.03 feature of the program was the presentation of a gold medal
Less Reserve
10,348.15 to Mr. Lewisohn in appreciation of his services as chairman
Alpine Hans
5,000.00
Less Reserve
of the National Thrift Committee. John A. Goodell,
$5,348.15
Ttoal
Executive Secretary of the National Thrift Movement,
Prepaid and deferred accounts:
2,596.14 introduced Mrs. Annie Peaks Kenny, Budget Service DirecInsurance premiums
145.86
Payroll advances
4,563.05 tor of the Illinois Merchants Trust Co. of Chicago, who
Purchase commitments undistributed
$7,305.05 gave an interesting statement of her work, in which she
Total
helps thousands annually in their financial affairs. Dr.
$5,319,937.52
Frederick Howe of Pratt Institute announced the organiLfabUtties.
Accounts payable:
$4,859.228.39 zation of a thrift research commission to secure more basis
Submitted to City of Philadelphia for payment
648,61311
Payable by the association
facts in connection with the better use of money. Prominent
$5,507,841.80 college authorities and public officials are to serve on this
Total
3,740.03
Contracts payable
commission, which will also have representatives from the
Creditors of Nuernberger Hauptmarket not assigning their intermits
1,022.38
to the association
banking, insurance and other interested lines of business.
5,298.13
Accrued payroll
4,563.05
Purchase commitments
Stitt, Assistant Superintendent of Schools in New
Edward
Reserves:
3,272.10 York City, spoke of the thrift work which is going on with
Unclaimed wages
941.00
Automobile parking contract
246.20 a million school children in the metropolis. John Clyde
Outstanding checks
___________________________________________________
Oswald, President of the International Benjamin Franklin
$4,459.30
Total
concerning Mr. Lewisohn's good work,
85,526.924.69 Society, spoke briefly
did
a banker from Pittsburgh. The
Edward
B.
Hayes,
as
Expense in excess of Income, without giving effect to an amount to be
realized from salvage, which, if sold at favorable prices, would more
buffet luncheon. Besides Mr.
were
a
by
206,987.17
talks
followed
excess
this
of
offset
expeases
than
$5,319,937.52 Stout other members of the arrangements committee were:
John Sherman Hoyt, B. C.
The petition for the placing of the Philadelphia Sesqui-Cen- E. C. Delafield, B. H. Fancher,
Richard,
H. H. Westinghouse,
C.
Haley
Forbes,
H.
Fiske,
April
on
granted
tennial Association in receiver's bands was
Wiley, Irving T. Bush.
23 by Federal Judge Thompson of the United States District Edwin Bird Wilson, Louis
11,061.17
164,143.34
67,185.82
Court at Philadelphia, who named Francis Shunk Brown,
Pays
former State Attorney-General, and E. L. Austin, Director- Higganum Savings Bank of Haddam, Conn.,
Business.
176%—Lacked
Depositors
required
was
Each
the
Exposition, as receivers.
General of
The following Middleton (Conn.) advices June 6 are from
to post a bond of $25,000. Frank E. Moorshead, attorney
photographer,
New York "Times":
J.)
(N.
the
Cardinell,
Montclair
D.
for John
JULY 9 1927.]
THE CHRONICLE
Although solvent and paying 7% interest to depositors, the Higganum
Savings Bank of Haddam has wound up its affairs because of'lack of
business. Depositors have been paid 176% in settlement of their claims
by Eugene Burr, the Treasurer.
The bank is located in a small village with prosperous savings banks
in a near-by city paying 434 and 5%; but depositors preferred to go to
the city banks, so the officers of the Higganum bank decided to close.
They got an order from the Superior Court to dispose of the assets to the
depositors.
195
under all circumstances, but I hope that in trying to find a way to eliminate
the disasters of deflation that follow in the wake of inflation I may not be
charged with trying to injure the Federal Reserve system, which I believe
to be the best monetary system in the world, or with seeking to overcome
the law of supply and demand and fix prices that must necessarily be
affected thereby.
"In the writing of a new bill to be introduced in the next session of
Congress I do want the co-operation of tne officers of the Federal Reserve
system and men like yourself, and if the right kind of a bill is not so
Introduced I believe it will be because I do not receive the same."
Representative Strong's letter of April 16, referred to
Congressman Strong to Push His Bill for Stabilizing
follows:
above,
System—Text
of
Reserve
Federal
Prices Through
April 16 1927.
Revised Bill—Provision for Stable Money
Gentlemen: I would like very much to have your members understand
Commission.
the importance of legislation now pending having as its purpose the prevention of deflation and inflation.
The views of Under-Secretary of the Treasury Mills with
I introduced in the recent Congress a bill, H. R. 7895, which directs the
referred
(which
we
stabilization
bill
regard to the Strong
Federal Reserve System to use all its powers to stabilize the general price
to in our issue of June 4, page 3293), lend interest to the level. This price level is shown by the index number issued each month by
the United States Department of Labor.
announcement on April 16 by Congressman James G. Strong
This bill will give us the scientific "elastic currency" which we thought
that he was preparing to devote his summer to explaining we were getting when the Federal Reserve Act was passed. Under this
expands and contract as
his proposal, as embodied in the Stabilization Bill. The plan the money volume will expand as commerce
commerce contracts. The result will be a stable price level. This will do
latter, introduced in the last session of Congress, proposes away with the 'business-cycle" and prevent business booms and depressions.
through the Federal Reserve System to prevent deflation
As Secretary Hoover says in his 1926 report, pages 11-13:
"One of the largest wastes hitherto in our whole economic system is the periodic
and inflation in the future so as to do away with business booms
and slumps of the 'business cycle.' The waste of the boom through specularelaxed effort, and decycles, prevent business booms and depressions and to tion, overproduction, ill-advised expansions, extravagance,
creased efficiency. with Its inevitable collapse, is followed by still greater wastes
stabilize employment, production and the general level of during the depression by unemployment: and of all groups the farmer suffers the
worse because of the inability of agriculture to readjust itself to new conditions, due
prices. Congressman Strong made public a letter which he to
long period of turnover as compared to industry. No greater fundamental servlee
be done for agriculture than to secure its freedom from this disability.
has sent to a number of associations of business men and can
"No one doubts the extreme importance of credit and currency movement in the
interfere with the
farmers, labor organizations and others explaining the prin- 'business cycle.' Disturbances from this quarter may at once
fundamental business of producing goods and distributing them. Many previous
ciple of his bill and urging their consideration and support. crises have arisen through the credit machinery and through no fault of either the
or consumer. . . .
He claims credit for the final enactment of the producer
"The Importance of the far-seeing management of the Federal Reserve System in
matters was greatly emphasized by the inadequacy of the policies pursued in
McFadden banking bill during the last Congress, these
the slump of 1920-21. The use of the powers of the Federal Reserve Board to
having been, be says, influential in the Conference Commit- deliberately check incipient speculation by the control of discount rates and Of open
market transactions has had much advocacy In economic circles, but has not met
tee which finally brought about the passage of the bill. In with universal business support. On the other hand, that the Federal Reserve
should be so managed as to result in stimulation of speculation and overhis letter of April 16 Congressman Strong said that his bill System
expansion has received universal disapproval. In any event, the increasing understanding
of the relation of credit to the movement of production and consumption is
does not add to the powers of the Federal Reserve System,
gradually developing policies leading to maintained stability."
merely directing how the powers it now has shall be used to
Numerous associations and groups have passed resolutions urging the
stabilize the general level of prices.
necessity of stabilizing the purchasing power of the dollar. These have
Following the views expressed on May 27 by Under- been banker', jobbers, manufacturers, investment dealers and labor organiforeign trade clubs and others. The foremost economist of the
Secretary of the Treasury Mills with regard to Representa- zations,
United States approves the principle. Leading bankers, such as Governor
tive Strong's bill, the latter addressed a letter to Mr. Mills Strong of the Federal Reserve Bank of New York, James S. Alexander of
in which he said that "from the wording of the title or your the National Bank of Commerce in New York, Frank 0. Lowden, Arthur T.
A. Filene and many others at various times have stated the
address and the manner in which you approach the subject Hadley, E. of
stabilizing the general price level or the purchasing power
desirability
I fear you think that behind the bill I have introduced is a of the dollar, in so far as this is possible.
The Federal Reserve System is the only semi-Governmental agency credesire to control prices in the interest of agricultural compolicy being laid down as to how
modities. I want to assure you as positively as I know how" ated without any definitely prescribed
its powers shall be used; and these powers are tremendous. With the
said Representative Strong, "that such is not the fact."
power to deflate or inflate, it has the power to control the value of every
In its account from Washington, June 5 of Representative business contract and commodity, to bring depression or prosperity, to
too extensive and
Strong's letter to Mr. Mills, the New York "Journal of control public sentiment. Experience shows this is
dangerous a power to leave in the hands of any agency without specific legisCommerce," said:
lative direction as to how that power shall be used.
Wording of Bill Analyzed.
Mr. Strong suggested that perhaps the wording of the bill "all of the
powers of the Federal Reserve System shall be used for promoting the
stability of the price level" was unfortunate. Had it read "all tho powers
of the Federal Reserve System shall be used for promoting stability in the
purchasing price of money," he added,"perhaps tho friends of the measure
would have met with less prejudice and more co-operation from those in
the position to help perfect legislation designed to establish a policy that the
powers given to the Federal Reserve System shall be used, as far as possible,
to prevent inflation and deflation.
"Governor Strong of the New York Federal Reserve Bank," he continued,
''told me personally during the hearings on my bill that the Federal Reserve
System was using the powers that they had along the exact line I wished
them to be directed and that he felt that for the last three and possibly
four years they had been very successful in doing so. He also stated to
me that if the Federal Reserve Board should ask him to do so he would
be very glad to assist in working out the phraseology of a bill which he
thought would be satisfactory to all concerned, but he thought that it
Would not be ethical for him to do so unless the board should request it.
Board Opposed Proposition.
"With this thought in mind, before Congress adjourned I called upon
Governor Crissinger of the Federal Reserve Board and asked hint to send
out the list of amendments that had been suggested as a result of those
Who had followed the hearings and had written to me in the matter, for
the purpose of having them criticise the same and suggest other phraseology if they desired, telling him of my conversation with Governor Strong.
"Governor Crissinger agreed to do so, but a week or ten days later viceGovernor Platt wrote me that the board had met in the absence from the
city of Governor Crissinger and decided against the proposition. Before
leaving Washington I again had a talk with Governor Crissinger and I
think convinced him of my desire to co-operate with the board in the
Wording of a new bill to be introduced at the next session and he assured
me that he would be glad to have me attend a meeting of the board and see
If the same could not be worked out."
Representative Strong denied that any propaganda has gone out which
"contains the usual special appeal to classes or groups dissatisfied, for one
reason or another, with existing conditions."
Lauds Reserve System.
"I am seeking all possible information on the subject, to the end that
the powers given the Federal Reserve System shall be used, so far as may
be for stabilization of the purchasing power of money, that inflation and
deflation, so far as may be, shall be avoided and the business cycle
eliminated," concluded Representative Strong,"and I believe that Congress
will continue to fall to carry out the direction of the Constitution that it
'shall coin money and regulate the value thereof' until it shall find a way to
accomplish such a purpose.
"I believe that the powers given the Federal Reserve Board contain the
possibility to achieve such an end. I know stability cannot be maintained
This bill does not add one iota to the powers of the Federal Reserve
System. It merely directs how the powers it now has shall be used—that
is, to stabilize the general level of prices. It directs that these powers
shall be used constructively and not destructively; that they shall be used
in a manner to promote economic justice rather than injustice. The result
will be measurably to promote stability of employment, of consumption, of
production—of all business processes.
I feel that this is a matter which should be of vital interest to all of the
members of your organization and that you can be of great assistance in securing the passage of this legislation. So, if I may, I wish to suggest that
you take the following steps:
First, the passage of a general resolution approving the idea of the stabilization of the price level—that is, opposing deflation and inflation.
Second, the appointment of a committee to study this bill and the hearings held on the bill by the House Banking and Currency Committee.
Third, if you conclude that my bill is sound, endorse it, and urge the
Congress to pass it.
It may be desirable for scene one to present to your membership, at one
of our meetings or otherwise, an analysis of the problem of stabilization
and of the proposed solution. Personally, I am unable to respond to all of
the requests for addresses which I should like to make. However, if you
desire an address on the subject, I shall be glad to try to put you in touch
with a speaker.
In my eight years of experience as a member of the House Banking and
Currency Committee I have never been associated with legislation of such
far-reaching importance.
Won't you please have this matter carefully canvassed, writing me of
the steps you are taking and in what way I can assist you to a complete
understanding of the compelling necessity that Congress shall lay down to
our Federal Reserve System this stabilization policy?
Sincerely yours,
JAMES G. STRONG.
Prior to the adjournment of Congress on March 4 Representative Strong announced a new draft of his bill. In presenting this revised form of his bill, he said:
I introduced a bill (H. R. 7895) in the first session of the Sixty-ninth
Congress which in brief instructed the Federal Reserve System to use its
powers for promoting stability in the general price level.
In a speech I delivered before the House of Representatives on Feb. 20
1926 I explained the purpose of my bill and presented a chart of the fluctuations in the general price level based on data furnished by the Department of Labor covering the years 1910 to 1925. I closed my remarks with
a request for co-operative assistance and constructive criticism to the end
that the bill might be so amended as to produce the results desired.
During hearings on the bill before the Banking and Currency Committee
I repeatedly made it plain that I desired the co-operation. of:
emmittee
and the witneeles that 001115 before it to ouch end.
196
THE CHRONICLE
On May 21 1928 I sent out a revised draft of my bill, prepared from suggestions received up to that time, and asked for criticisms and suggestions
thereon. On the basis of the many replies received I again, on July 20
1926, sent out a second draft, to which the response was even more generous and widespread. The draft of July 20 was more comprehensive than
the original bill and called forth many commendations from bankers, economists and industrial leaders and very little opposition or objection. On
the basis of these replies and of further hearings before the Banking and
Currency Committee, I have now prepared a third revision, which is
enclosed herewith and which I am sending to an extended list of economists, financial experts and business men and editors of financial publications. The purpose is to secure further comments and criticisms in the
the hope that when the same are submitted to the Banking and Currency
Committee, the best possible phraseology may be adopted and a favorable
report secured, which may lead to enactment of the bill into law.
This third revision contains some alternative sections.
We give herewith the new draft of the bill:
Third revision, Jan. SO 1927, of IL R. 7895, Sixty-ninth Congress, first
session:
AN ACT to amend the Act approved Dec. 23 1918, known as the Federal
Reserve Act, to maintain the geld standard, to prevent inflation and contraction, to promote the stability of commerce, business, and agriculture,
to promote economic justice between creditors and debtors, between bondholders and stockholders and between the parties to all contracts into
which time and money enter by providing a more stable money, and for
other purposes.
Be it enacted by the Senate and the House of Representatives of the
United States of America in Congress assembled, That the Act approved
Dec. 23 1913, known as the Federal Reserve Act, as amended, be further
amended as follows:
•
Amend paragraph (d) of Sec. 14 to read as follows:
"To establish from time to time, subject to review and determination by
the Federal Reserve Board, rates of discount to be charged by the Federal
Reserve bank for each class of paper, which shall be fixed with a view to
accommodating and stabilizing commerce, business, and agriculture"
Add to Sec. 14 the following paragraphs:
"(f) The Federal Reserve Board and the Federal Reserve banks and
committees.commissions. boards,agents,and servants under their direction,
supervision. or control, shall use the powers and activities granted or
authorized by the Federal Reserve Act and subsequent acts or amendments
thereto, including open market operations and other activities. In so far as
they have any effect thereon, with a view to regulating the volume of credit,
currency, and money in circulation so as to prevent inflation and contraction, and thereby to stabilize, so far as may be, the purchasing power
of the dollar In terms of commodities in general: but nothing herein shall be
construed as enlarging or extending any of the existing powers of the Federal
Reserve Board in this respect or as authorizing any interference with the
natural tendency of prices of specific commodities or groups of commodities
to vary among themselves under the influence of demand and supply.
"(g) The Federal Reserve Board shall formulate an index number which
shall reflect the current purchasing power of the dollar in terms
of commodities in general and shall make the same public at least as often
as
monthly. It shall publish the commodities, quantities, weights, formula,
sources of Information, data, and methods used in calculating such index
number and shall publish immediately any changes made in such list,
quantities, weights, formula, sources of information, data or methods so
used.
Alternative.
"(g) In complying with the terms of this Act and particularly with the
foregoing section, the index number of wholesale commodity prices prepared
and published by the Bureau of Labor Statistics, United States Department
of Labor, shall be taken as the index of the current price level and of the
purchasing power of the dollar, provided that should the publication of
such index number be discontinued, or if in the opinion of the Federal
Reserve Board it is desirable to do so, then The Federal Reserve Board
shall formulate an Index number which shall reflect the current purchasing
power of the dollar in terms of commodities in general and shall make the
same public at least as often as monthly. It shall publish the commodities,
quantities, weights, formula, sources of information, data, and methods
used in calculating such index number and shall publish immediately any
changes made in such list, quantities, weights,formula, sources of information, data, or methods so used.
"(h) Whenever any decision affecting or tending to affect changes in the
rate of rediscount, or having to do with purchases or sales in the open
market or otherwise affecting or tending to affect the volume of credit or
currency or money in circulation, shall be made by the Federal Reserve
Board, by the beard of directors of any Federal Reserve bank, or by any
committee, commission, or board having jurisdiction in such matters, such
decision and the reasons therefor shall be published immediately, and
minority opinions of those dissenting from such decision or reasons shall be
published simultaneously; Provided that the stated reasons for or against
any such decision may be withheld if their publication shall be deemed by
the Governor of the Federal Reserve Board incompatible with the public
interest".
After Sec. 28 add the following:
"Sec. 28A. The Federal Reserve Board is hereby directed to make or
cause to be made under its direction a comprehensive study of:
"(1) The limitations upon the effectiveness of any action which may be
taken by the Federal Reserve Board or the Federal Reserve banks or by
agencies under their control to secure stabilization in the purchasing power
f the dollar by influencing the volume of credit, currency and money in
circulation.
"(2) The extent of the influence of the activities of agencies of the Government of the United States or banks not under the control or influence
of the Federal Reserve Board, or of any other agency or agencies upon the
volume of credit, currency and money in circulation, and hence on the purchasing power of the dollar.
"(3) The effect upon the purchasing power of the dollar of fluctuations in
the supply of and demand for gold as affected by new discoveries and improved mining methods, the use of gold in the arts, and by imports and
exports of gold and otherwise; and
'(1) Available and proposed plans and means having for their aim the
stabilization of the purchasing power of the dollar.
"Sec. 2813. The Federal Reserve Board shall report to the Congress the
results of such study and shall recommend to the Congress such legislation
as, in its judgment, will best, promote such stabilization."
Alternative to Section 28A and Section 28B.
There is hereby created a Commission to be known as the "Stable Money
Commission" which shall consist of five Senators to be appointed by the
President of the Senate and five Representatives to be appointed by the
Speaker and five members to be appointed by the President of the United
States.
"Said Commission shall make a comprehensive study of:
"(1) The limitations upon the effectiveness of any action which may be
taken by the Federal Reserve Board or the Federal Reserve banks or by
agencies under their control to secure stabilization in the purchasing power
of the dollar by influencing the volume of credit, currency and money in
circulation.
"(2) The extent of the influence of the activities of agencies of the Government of the United States or banks not under the control or influence
of the Federal Reserve Board, or of any other agency or agencies upon the
volume of credit, currency and money in circulation, and hence on the
purchasing power of the dollar.
"(3) The effect upon the purchasing power of the dollar of fluctuations
In the supply of and demand for gold as affected by new discoveries and
Improved lidding methods, the use of gold in the arts and by imports ant'
exports of gob. and otherwise: and
"(4) Available and proposed plans and means having for their aim the
stabilization or the purchasing power of the dollar.
(VoL. 125.
"The Commission shall include in its report recommendation for legislation welch in its opinion will best promote the stabilization of the purchasing power of the dollar.
"The Commission shall elect its Chairman, and vacancies occurring in
the membership of the Commission shall be filled in the same manner as the
original appointments.
"The Commission is authorized to sit during the sessions or recesses of
Congress, to send for persons and papers, to administer oaths, to summon
and compel the attendance of witnesses.and to employ such personal services
and incur such expenses as may be necessary to carry out the purposes of
this resolution."
Merchants Association Opposed to Strong Bill for
Stabilization of Prices Through Federal Reserve
System—Paul M. Warburg's Advices to Representative Strong Approved by Executive
Committee.
The use of the Federal Reserve system for the stabilization
of prices, as proposed by Representative James G. Strong
of Kansas, a member of the House Committee on Banking
and Currency, has been disapproved by the Merchants'
Association. Representative Strong introduced last January
a bill directing that all the powers of the Federal Reserve
system shall be used for promoting stability in prices for
commodities in general. He wrote to the Merchants'
Association asking it to endorse this legislation. The proposal was referred to the Association's Committee on Banking
and Currency for its consideration. Paul M. Warburg, on
behalf of the Committee, drafted a reply to Representative
Strong's letter, which has been approved by the Association's Executive Committee as follows:
This Association appreciates the courtesy of your invitation, dated
April 16, to study your bill for the stabilization of the general price level
and to give you the impressions derived from that study. The Association
takes pleasure in communicating to you the following results of its thought
and discussion upon the subject.
The Association shares the view universally held that the interest of the
country is served best by the greatest possible stability of price levels, and
believes that in fashioning their discount and open market investment policy,
the Federal Reserve Board and the Federal Reserve Banks should ever be
mindful of this aim.
The Association is conscious, however, of the fact that there is a multiplicity of influences at play in determining price levels. The influence of
money and credit is only one of them,and,again, while the Federal Reserve
Banks—directly through their operations or indirectly by affecting the
psychology of the people—are important factors In increasing or decreasing
the speed and volume of the flow of money and credit, they do not and
cannot exercise a complete control of these currents. Any injunction to be
imposed upon the Federal Reserve Banks,in the opinion of the Merchants'
Association, could not, therefore, go further than to impress upon those in
charge of the Federal Reserve system the desirability of making this ideal
of price stability their compass by which to steer their craft as far as the
impelling consideration of other immediate requirements and emergencies
permits. It would be dangerous, however, to permit the fallacious impression to assert itself in the minds of the people that the Federal Reserve
system (no matter how much its officers might bend their efforts in the
direction of attaining price stability) could be held responsible for failure
In attaining this ideal, which, as already stated, could only be reached by
the co-operation under a common plan of forces entirely outside of the
Federal Reserve system's control, not only in the United States, but all
the world over. One need only envisage the drastic changes that would
follow from the elimination of our tariff or immigration walls, or from the
adoption of an inflationary policy on the part of our Treasury in order to
realize the limitations of the scope of influence of Central Banks in this
regard.
The Merchants' Association hopes that It is not presuming upon your
patience in stating these views—no doubt fully familiar to you—but it
cannot forego expressing its earnest concern lest by pledging the Federal
Reserve authorities to the accomplishment of a task plainly beyond their
powers, the door may be opened to attacks upon the Federal Reserve
system by those, who in the case of recurrent price level fluctuations, should
they occur. would see a fiasco of the Federal Reserve system, or a willful
disregard on the part of the Federal Reserve authorities of tile injunctions
laid upon them by the law. This might engender in the minds of people
not well versed in the functioning of economic laws a feeling of disappointment and resentment which might lead to attempts to induce Congress to
pass legislation far beyond the general direction contained In the draft
of the law as sponsored by you: legislation that would endeavor to lay down
specific instructions, dangerous because rigid rules chnnot be devised
adequately to meet so complex a problem as the economic structure of the
world, and doubly so because in all probability these instructions would
have to be predicated upon theoretical charts and indices, the study of
which is only in its infancy, and the reliability Of which has not yet been
adequately tested.
In case the Merchants' Association can be of any service to you in the
solution of the complex problem on your hands, it will consider it an
honor and a pleasure at all times to hold itself at your disposal.
Federal Reserve Board on Branch Banking Developments in 1926—Situation in California.
In discussing "Branch Banking Developments in 1926,"
the Federal Reserve Board in its May "Bulletin" states
that at the end of 1926, there were 789 banks in the United
States that were operating branches, or .about 3% of the
total number of banks In the country. The total number of
branches operated Is given as 2,777. More than half of the
bank's operating branches, the article indicates, are In the
six States of Californ!a, New York, Michigan, Ohio, Massachusetts and Louisiana, which have altogether 431 such
banks operating a total of 2,035 branches. From the article
It is learned that the total number of branchese embraced in
the California system Is 668, operated by 88 banks. We
quote the article herewith:
JULY 9 19271
In June of 1924, and again in December of 1925 and of 1926, the board
secured, through the Federal Reserve agents, reports covering branch
banking developments in the States. Similar reports will in the future be
required semi-annually in Jung and December covering such developments
during the preceding six months, and on the basis of these reports a continuous office record will be maintained of branches established, discontinued, and operated by all classes of banks-national, State member, and
non-member. These reports will give for each bank operating a branch or
branches,the location of the branch and the method and date of its establishment-as by conversion of an existing bank, or by original establishment of
a branch de novo-the method of its acquirement by the present operatoras by merger or consolidation-and the method of its discontinuance. Data
for non-member State banks have been supplied by State oanking authorities, covering State commercial banks and trust companies, savings banks,
and private banks in so far as information is available.
Some delay is unavoidable in securing these data, and in toe present
instance it may be noted that developments since December,in anticipation
of or consequent upon the passage on Feb. 25 1927, of the act amending our
national banking laws, the McFadden Bank Act, have effected considerable
changes in the classification of banks operating branches. Of these changes
the most considerable is the nationalization of one largo California branch
system, following a merger. Other changes include the approval by the
comptroller in the case of several national banks of the conversion of additional offices, or "teller-window" branches,into full-power branches. These
changes, however, affect principally either the classification of parent banks
as National or State, or simply the legal status of branch offices originally
authorized by the comptroller in the exercise of his administrative authority
under the National Bank Act.
Legal Status of Branch Banking.
As regards the legal status of branch banking under State banking codes
and administrative practice, reference may be made to the Federal Reserve
"Bulletin" for June 1926, which classifies the States as permitting, or
prohibiting, or not providing expressly by statute for the establishment of
branches oy State banks. The branch banking area. including States which
permit the establishment of branches either freely within the State or under
restrictions as to location of branch in the borne city of the parent bank or
territory contiguous to the home city, remains practically as defined in the
account of branch banking given in the "Bulletin" of last June. A New
Jersey statute authorized State banks to establish branches, conditionally
upon legislation by Congress authorizing establishment of branches by national banks. To April 29. under the amending act of February 11, national
banks had been authorized by the comptroller to establish 16 branches, and
applications of State oanks, also, for permission to establish branches had
been filed With the New Jersey Department of Banking and Insurance.
In other States, to April 29. under the new Act. 35 branches of 18 netional
banks had been authorized by the comptroller. Under an administrative
ruling of the comptroller, national banks had been permitted, prior to
approval of the Act of February 25, to establish limited-power branch
offices in the home city of the parent bank In States which permitted State
banks to establish such branches. One effect of the new Act is to legalize
home city offices by express statutory provision as full-power branches and
to authorize the establishment of such branches by national banks in cities
of 25.000 or more population-not more than one branch in cities of 25,000
to 50.000 population or more than two branches in cities of 50,00 to 100,000
no limit as regards the number of branches being imposed upon banks located
in larger cities, except that the determination of the number of branches for
these larger cities is within the discretion of the comptroller. National
banks may acquire branches, also, by direct merger of State banks operating
branches without prior nationalization of the merged bank. No national
or member State bank will be permitted to establish a branch in any State
which does not permit State banks to establish home-city branches, and
no member bank may in the future establish branches outside the home
city, although it may retain such branches In operation, provided they
were established prior to Feb. 25 1927.
Extent of Branch Banking.
At the end of 1926, according to reports secured through the Federal
Reserve agents, there were 789 banks in the United States that were
operating branches, or about 3% of the total number of banks in the
country. The more important figures with regard to there banks are given
In summary form below and in detail for classes of banks, cities, and States
in tables which appear at the end of this "Bulletin."
BRANCH BANKING IN THE UNITED STATES.
Dec. 3125. Dec. 3125. June 3024.
Number of banks:
Total
Operating branches
Only in hcme city
In and outside home city_
Only outside home city
27,377
789
473
48
268
28,257
786
466
55
265
28,996
714
391
40
283
Number of branches operated:
Total
In home city
Outside home city
2.777
1,928
849
2,645
1,810
835
2,293
1,508
785
Distribution of branch systems by size:
More than 10 branches'
8 to 10 branches
3 to 5 branches
2 branches
1 branch
so
38
124
131
446
48
39
118
135
446
It will be noted that the number of banks operating branches remained
almost constant during 1926. increasing by only three banks, and .hat the
number of branches operated increased by 132. almost all of the additions
representing branches in the home city. A largo majority of the existing
branches, in -fact, are located in the home city of the parent bank, and
more than half of them are in the larger cities of the country. There were
in December only 50 systems in the country having more than 10 branches,
the largest system at that time having a total of 100 branches. The recent
merger of two California systems has introduced a new maximum size since
Decemner, this system having altogether at the end of April 278 branches
In operation or authorized to be established.
It will also be noted that more then half of the branch systems, so-called,
are one-branch systems and that only 88 of the 789 parent banks were operating with more than five branches in Decemner 1926. Detailed tables given
elsewhere show that the proportion of home city branches is large for banks
located in the larger cities, *while the proportion of outside branches is large
for banks located in the smaller cities, where they very commonly represent
the extension of banking services to rural communities through the agency
of one or two branch offices located in neighboring towns. The proportion
of outside branches for parent banks located in large cities is affected by
State legislation as, for example, in New York, where the establishment of
outside branches is prohibited.
197
THE CHRONICLE
More than half of the banks operating branches are in the six States of
California, New York, Michigan, Ohio, Massachusetts, and Louisiana.
which have altogether 431 such banks operating a total of 2.035 branches.
These banks have total deposits of aoout $16,000,000,000, or about 80%
of all the deposits held by banks operating branches and about one-third
of the deposits held by all banks in the United States. The deposits of the
banks operating oranches in these States are given in the table on opposite
page, by classes of banks, Naito corresponding figures for all banks in the
State and in the United States as a whole.
Of deposits In California member State banks at the end of December
were in banks operating branches, the corresponding proportion for member
State banks in New York being 92%, in Ohio 88%, and in Michigan 82%.
For national banks the proportion was 42% in California, 58% in New York.
50% in Michigan, and 60% in Massachusetts. It will be understood that
these percentages were exceptional, and that in a majority of the States in
which one or more banks were operating branches the proportion of deposits
reported by such banks was in comparison with total deposits of all banks
inconsiderable.
BANKS OPERATING AND NOT OPERATING BRANCHES, BY STATES.
DECEMBER 1926.
Number of Banks.
Total.
OPerat- Not Operating
int?
Branches. Branches.
27,423
United States
789
26,634
357
5
852
Alabama
40
47
7
Arizona
2
463
465
Arkansas
538
626
88
California
5
43
48
Delaware
10
33
43
District of Columbia
537
59
22
Georgia
1,080
1,084
4
Indiana
606
4
610
Kentucky_a
194.
234
40
Louisiana
121
24
145
Maine
208
244
36
Maryland
367
445
78
Massachusetts
671
739
68
Michigan
2
1,236
1,238
Minnesota
315
326
11
Mississippi
1,041
1,043
2
Nebraska
13
549
562
New Jersey
1,051
105
1,156
New York
449
40
North 'Carolina
489
1,084
1,032
Ohlo_a
52
1
284
265
Oregon.
Pennsylvania
1,668
1,585
83
37
9
28
Rhode Island
1
7
294
South Carolina
Tennessee
22
508
509
37
472
Virginia
362
357
Washington
980
7
973
Wisconsin_
11,227
11,450
Other States_b
a Figures for June 1926.
S Includes States expressly prohibiting branch banking-Colorado, Connecticut,
Idaho, Illinois, Missouri, Nevada, New Mexico, Texas and Utah-and other States
In which no branches are in operation-Iowa, Kansas, Montana, North Dakota,
Oklahoma, South Dakota, Vermont, West Virginia and Wyoming.
PROPORTION OF DEPOSITS HELD BY BANKS OPERATING BRANCHES,
DECEMBER 1926.
Number of Banks.
OperatTotal.a
lag
Branches.
28,025
789
7,906
1,354
17,650
620
495
141
195
394
50
9
California, total
625
88
National
State member
All other
268
31
326
16
16
56
New York, total
1,153
104
National
State member
All other
546
109
498
26
38
41
Michigan, total
785
68
National
State member
AU other
134
157
494
11
34
23
1,979
52
347
83
649
5
22
25
United States, total
National banks
State member
Non-member State_b
Mutual savings
Private
Ohio, total
National
State member
All other
Massachusetts, total
Total Deposits.
AU Banksa
Banks
Operating
Branches.a
554,629,210,000 819,657,282,000
20,851,667,000
13,656,498.000
12,410.173,000
7,577,623.000
133,249.000
5,692,203,000
9,805,544,000
2.389,840,000
1.751,958,000
17,737.000
$3,399.689,000 $2,468,889,000
981.716,000
1,441,776.000
976.917,000
407,597,000
1,390,656,000
670,636,000
815.140,952,000 $9,229,514,000
4,925,958.000
5,176,666,000
5,038,328,000
2,834,272,000
4,787,156,000
1,608,086,000
81.744.567.000 91.023,523,000
470,353,000
873,356,001
400,858,000
236,848,000
715,539,000
71,136,000
$2,506,573,000 $1,202,461,000
738,206,000
1,091.517,000
677,850,000
75,708,000
959,272,000
167,481,000
$3.614.274,000 91,421,359,000
444
78
National
State member
All other
155
26
263
16
16
45
1,153,675.000
504,062.600
1,956,537.000
692,498,000
438,748,000
290,113,000
Louisiana, total
239
40
$433.109.000
$258.571,000
National
State member
All other
33
11
195
1
8
31
108,878,000
191,474.000
132,757.000
11,698,000
176,178,009
70,695,000
Other States, total
23,700
358
National
State member
All other
6,423
937
16,340
66
61
231
527.790,046,000 $4,852,965,000
12,472,881,000
4,378,847.000
10,938.518.f 01
1,433,582,000
1.337,995,000
1.281.388.000
a-Non-ineinter lank figures in base co'umns are for June, 1926.
6-Commercial banks and trust compan:es.
Branch Banking in California.
In the State of California, in which branch banking has had the most
extensive development, there are 11 banks operating more than 10 branches,
of which 2 are national banks, 5 are State member banks and 4 are nonmembers. The total number of branches embraced In the California systems is 668, diviee I about equally between branches in the home city and
branches outside the home city; nearly 90% of these branches are operated
by parent banks located in cities having a population In excess of 100.000.
There are. however, 66 branches operated by 43 banks that are located in
198
THE CHRONICLE
places with a population under 25,000. Detail for branch banking in California is given in the two accompanying tables:(a)
CALIFORNIA BRANCH SYSTEMS, CLASSIFIED AS OPERATING
BRANCHES IN AND OUTSIDE THE HOME CITY OF THE
PARENT BANK.
[VOL. 125.
Gilbert H. Montague on
Unlawful—Possibility of
Trust Law Dissipated
Price-Fixing,
Lawful and
Amendment
by
Supreme
of
AntiCourt
Decision in Cline Case.
Number of Branches.
Number of
Parent
Banks,
Total
88
668
331
32
15
41
92
503
73
92
239
16
85
75
13
1
2
47
34
4
47
28
16
355
143
5
5
6
14
325
16
14
129
Total
56
228
113
Systems operating branches:
In home city only
In and outside the home city
Outside the home city only
14
9
33
31
144
53
31
82
Character of System and Class of Bank.
'Total
Systems operating branches:
In home city only
In and outside the home city
Outside the home city only
•Total
hi
Ovisdde
Home Home
City.
City.
337
264
73
National Banks.
•Systems operating branches:
In home city only
In and outside the home city
Outside the home city only
10
6
4
State Member Banks.
'Total
.Systems operating branches:
In home city only
In and outside the home city
Outside the home city only
212
196
16
Non-Member Banks.
115
62
A's
CALIFORNIA BRANCH SYSTEMS, CLASSIFIED BY SIZE OF CITY IN
WHICH THE PARENT BANK IS LOCATED.
Number of Branches.
Nunsbet of
Parent
Banks.
Total.
In
Horne
City.
Outside
Home
City.
Total
88
668
331
337
Under 82,500
2,500-25.000
25,000-50,000
50,000-100.000
100,000- 1,000,000
1,000,000 and over
23
20
4
9
32
39
27
5
19
578
1
305
38
22
1
3
273
16
85
75
10
2
3
2
3
1
3
1
3
8
5
75
5
86
9
16
355
143
212
1
4
1
7
1
10
1
346
1
142
204
Total
56
228
113
115
Under 2,500
1,500-25,000
15,000-50,000
50,0'0-100,000
100,000-1,000,000
1 nnn non sand Av..
20
13
4
5
14
36
17
5
13
157
2
4
10
97
36
15
1
3
60
Population of City of Parent Bank
and Class of Bask.
5
18
4
National Banta.
Total
Under 2.500
2,500-25.000
15,000-50.000
50,000-100,000
100,000-1,000,000
1.000,000 and over
State Member Banks.
Total
Under 2,500
1.500-25,000
15,000-50,000
50.000-100.000
100.000-1,000,000
1,000,000 and over
1
7
Non-Member Banks.
a Similar data for other States are on file in the offices of the board. Less detailed classifications for States and individual cities are g ven on pp. 386-389 of this
"Bulletin."
Method of Establishment of Branches.
Establishment of branches is generally in the States under the adminisState Superintendent or Commissioner of Banking,
control
of
the
trative
who is given more or less discretionary power in granting or denying applications of State banks for permission to establish branches. Subject to
approval of the State officials, a bank may extend its system of branches
either by de novo establishment of a branch or by acquiring an already existing bank through purchase, merger, or consolidation and converting the
acquired bank into a branch office, or by acquiring, through merger, purchase or consolidation, an already existing branch of another bank. Acquirement of a branch or branches by any bank may accordingly represent
an increase in the total number of branches in the State without affecting
the number of independent unit banks, or it may represent a corresponding
reduction in the number of independent banks, or simply a transfer of existing branches from one bank to another. In any given case, the history
of a branch may reveal several of these processes affecting its character
and ownership, and in some cases the bank operating the branch at the present time may have no record of its earlier history. This obscurity of origin
accounts in part for the number of "no report" cases shown in the table,
which classifies branches as established de novo or by conversion. Approximately one-fourth of the branches reported in December last represented in their origin banks which had been converted into branches.
BRANCHES CLASSIFIED AS ESTABLISHED DE NOVO OR I3Y
CONVERSION.
Number of Branches, December 1926.
Class of Bank.
Total
Member,total
National
State
- Non-member, State. total_
Commercial and trust
Mutual savings
Private
State, total member and nonmember
Total.
Established
De Novo as
Branches.
2,777
1,960
641
176
1.767
404
1,363
1.010
923
75
12
1,254
297
957
706
648
54
4
436
83
353
205
204
1
77
24
53
99
71
20
8
2.373
1.663
558
152
Converted
Banks.
No Report of
Method of
Establishml.
Addressing the Wisconsin State Bur Association in annual
meeting, at Green Bay, Wis., on June 22, Gilbert H. Montague, of the New York Bar, stated that "all possibility of
amending the anti-trust laws, so as to exempt agreements
or combinations 'the object and purposes of which are to
conduct operations at a reasonable profit or to market at
reasonable profit those products which cannot otherwise be
so marketed,' is completely dissipated by the Supreme
Court's decision on June 6 1927 in the Cline case. Such a
law, says the Supreme Court, would set up an 'utterly impracticable standard for a jury's decision.' This, the Supreme Court held, amounted to a denial of due process of
law, and was therefore in violation of the Fourteenth
Amendment of the Federal Constitution." Mr. Montague
went on to say:
This Supreme Court decision puts the quietus on all proposals recently
made, in various quarters, to amend the Sherman Act and the Clayton Act
along these lines, since the provisions of the Fourteenth Amendment there
involved are by the Fifth Amendment of the Federal Constitution made
applicable to all Congressional statutes. This decision, in which all the
Justices of the Supreme Court concurred,reads almost as if it were rendered
for the express purpose of ending Just such propaganda.
These attempted exemptions, the Supreme Court says, rest on the
assumption that combinations ought not to be "regarded as unlawful if
their purpose shall be to obtain only a reasonable profit in such products or
merchandise as cannot yield a reasonable profit except by marketing them
under the combinations previously condemned."
"It would," on this assumption, the Supreme Court states, "be a complete defense for the defendant to prove that it is impossible to sell milk
or milk products, except by trust methods and make a reasonable profit,
if he also showed that by such methods he had in fact only made a reasonable
profit." This possibility the Supreme Court vigorously rejects:
"The manifest danger in the adirinistration of justice according to so shifting
vague, and indeterminate standard would seem to be. strong reason for not adopting
Quoting its decision of November 23, 1926 in the Trenton Potteries
case, the Supreme Court says:
"The reasonable price fixed to-day may through economic and business changes
become unreasonable price of to-morrow. We should hesitate to adopt a construction making the difference between legal and illegal conduct in the fild of business
relations depend upon so uncertain a test as to whether prices are reasonable—a
determination which can be satisfactorily made only after a complete survey of our
economic organization and a choice between rival philosophies."
The Supreme Court then continues:
"On Questions of confiscatory rates for public utilities, for instance, courts must
examine in great detail the circumstances and reach a conclusion as to a reasonable
profit. But this does not justify in such a case holding the average member of
society in advance to a rule of conduct measured by his judgment and action in
respect of what is a reasonable price or a reasonable profit."
This Cline decision, by the Supreme Court on June 6, 1927, becomes
still more significant in the light of what the Supreme Court decided on
May 31, 1927 in the American Tobacco case.
There the Supreme Court, again by a unanimous decision, held that it
would not interfere with lower court decisions on questions of fact involved
in Federal Trade Commission cases, even though those questions "admit
of different interrretations," and those lower court decisions are "not
satisfactory as an exposition of the law." Resourceful prosecutors, it
must always be remembered, in criminal proceedings, or in triple damage
actions under the Sherman Act, or in Federal Trade Commission proceedings
are usually able, without much difficulty, to introduce enough evidence
so that the jury, or the court, or the Commission, always has at least
some evidence on which to find, if It is so disposed, that "agreements and
combinations" in violation of the anti-trust laws are "Implied from a
course of dealing or rather circumstances' of the defendants.
The consequence, therefore, of all these recent Supreme Court decisions
is that price fixing "agreements and combinations" are outlawed, even
though the prices are reasonable, and If the Jury, court, or Federal Trade
Commission finds any evidence tending to show that such rrices fixing
is the result of an "agreement or combination," this conclusion cannot and
will not be overthrown by the Supreme Court of the United States.
Gilbert H. Montague, Before National Foreign Trade
Convention, Discusses "Agreements in American
Export Trade."
In the view of Gilbert H. Montague, of the New York Bar,
"conditions abroad may soon develop that may make It des:rable for American exporters to abandon their present
individualistic attitude, and to come to an agreement with
one another regarding prices to be charged or orders to be
Mr. Montague, who adallotted in foreign markets."
dressed the National Foreign Trade Convention at Detroit
on May 27, on the subject of "Agreements in American Export Trade," also had the following to say:
With the spread throughout Europe of trade agreements and "cartels"
of international proportions, conditions may develop, in some lines of trade
that may make it practically necessary for American exporters, through
"associations" under the Webb Act, to come to agreements with foreign
manufacturers and producers and with foreign "cartels" regarding prices
to be charged or business to be divided in foreign markets.
Export managers of American manufacturers or producers, whose companies have registered with the Federal Trade Commission and complied
with certain legal requirements, may now, by special exemption from the
anti-trust laws, sit around the same table, agree on export prices, agree on
terms of export sales, agree on export markets, and in general agree to be
just as competitive or just as non-competitive with one another as they
desire in export trade.
All this they may do, if they wish, without setting up any elaborate
organization or paraphernalia or incurring any more expensive overhead
or bother than is involved in the oiinplest kind ot trade association.
JULY 91927.]
THE CHRONICLE
All this bother and paraphernalia, which the Federal Trade Commission
during the first years of the Webb Export Trade Act had been disposed to
insist upon, may now be entirely dispensed with.
The Federal Trade Commission, by a ruling dated July 31 1924, has at
last brushed away all this surplus baggage with which doubting officials
had previously encumbered the Webb Act, and has finally opened up to
American manufacturers and producers all the opportunities and benefits
that Congress intended to confer upon them when the Webb Export Trade
Act became law on April 10 1918.
Extent of American Investments in Foreign Countries—
Study Prepared by Max Winkler for
Foreign Policy Association.
A supplement dealing with the nature and extent of
American investments in foreign contries at the close of
1926 has been published by the Research Department of the
Foreign Policy Association, which credits the compilation to
Dr. Max Winkler, Vice-President of Bertron, Griscom & Co.,
Inc., and formerly Vice-President and head of the Foreign
Bond Department of Moody's Investors Service. In placing
the total of American investments abroad at approximately
$13,000,000,000, exclusive of the "political debts" aggregating about $11,000,000,000, Dr. Winkler says:
In 1914 the United States was indebted to foreign countries to the extent
of approximately $5,000,000,000. American investments abroad were only
about $2,500,000,000. Sums placed in foreign securities or foreign enterprises were confined to a much smaller amount. On the New York Stock
Exchange less than a dozen foreign Government and municipal obligations
were listed, including an Argentine issue, three Japanese loans, a few Mexican securities, a Chinese loan, a City of Frankfort loan, and a Russian issue
rarely dealt in. The total annual turnover of foreign securities on the
Exchange barely exceeded $3,500,000.
What a change thirteen years have wrought
Examination of the financing effected in course of the past several years conclusively shows that
America has outgrown the provincial view of the pre-war period. From a
debtor nation the United States has become one of the world's most powerful creditor nations, with investments abroad of approximately $13,000,000,000, exclusive of the "political debts," aggregating about $11,000,000,000. Instead of twelve foreign issues traded in on our Exchange, there
are to-day several times that figure, and instead of an annual turnover of
$3,500,000, to-day's turnover is at the rate of more than $1,000,000,000
per annum.
How American capital is employed abroad is indicated
as follows by Dr. Winkler:
The many ways in which American capital has been used abroad may be
Illustrated by a few striking examples. American funds were an important factor in the defeat of the Central Powers during the war and an
equally important factor in their rehabilitation. American money helped
rebuild Japan after the disaster in the fall of 1923. America has loaned
money to the Dutch East Indies, Australia, Central America, Cuba,
the
West Indies; in South America to the Governments of Argentina, Brazil,
Chile, Bolivia, Peru and Colombia, and to provinces and States,
departments, cities and municipalities within these countries. To-day
American
dollars finance Chilean nitrate producers, Venezuelan oil
companies, Sao
Paulo coffee growers, Colombian tobacco raisers and Ceara
cotton planters.
Funds are obtained in the United States for Peruvian sanitation
projects
and for Brazilian, Chilean and Colombian railroad
construction.
supplies capital for Danish banks, Swedish industrial concerns, America
Norwegian
hydro-electric projects, Finnish financial institutions, Czechoslovak
equipment and glass companies, Jugoslav railways, Italian public
utilities, Spanish telephone enterprises and even Russian mining projects.
Dr. Winkler also refers to the attitude of the State
Department toward foreign loans since 1922 and says:
Since 1922 Washington has officially frowned on the flotations
in this
country of certain types of foreign loans whenever in the
opinion of the
State Department the proceeds from the sale of such issues
would raise
artificially the price of certain commodities to the American
consumer.
This is no doubt a very laudable move on the part of United
States officials.
On the other hand, there is reason to speculate why America
stood idly
by when Brazilian coffee was selling at absurdly low
levels, throwing
scores of Brazilian coffee planters into bankruptcy. Has the
United States,
the most powerful nation on earth, abandoned the Principle of
laissez-faire?
Although Lazard Freres, of New York, could not
underwrite a Brazilian
coffee loan—which is, incidentally, from the standpoint
of security, superior to all Brazilian loans which have been accorded
official sanction,
including Santa Catharine and Ceara, both more or less in
default—Lazard
Brothers, of London, were not prevented from doing
the
although Lee, Higginson, of New York, could not float a business; and
German potash
loan in this market, Higginson & Co., of London, underwrote
the issue.
As a result of the ban on foreign loans Americans who
have wished to
buy loans of this type have had to pay more than they would
bad the loans
been originally placed in this market.
American bankers are prevented from underwriting
French loans with
the result that if a French loan of substantial quality is
underwritten in
Holland or Switzerland and at a liberal profit to the
underwriter, and is
offered at an attractive price to the Swiss or Dutch investor,
the American
Investor, who wishes to buy bonds, is obliged to pay more than
his continental friends. As a consequence of the ban on French loans
in this market
France has within the past several months contracted loans
abroad
to the
extent of about $130,000,000. Taking into account
underwriting commissions and appreciation in quotations, the American banker
and investor
may safely be said to have lost from $9,000.000 to $10,000,000,
because
these loans would have come to America had it not been for the
ban.
As to the foreign financing in 1926, the survey says:
199
Dr. Winkler thus discusses the outlook:
It would be idle to prophesy what the future has in store for American.
investors in foreign obligations. While some of the recent offerings do not
perhaps constitute high grade investment issues, there appears to be no
reason for apprehension, for the time being, over the possible discontinuance of the service of foreign bonds held in this country, especially since
the over-aboundance af capital will make it possible for such debtors umay be in difficulties temporarily to create new debts to take care
of
existing obligations. Although relative novices in the realm of international finance, American bankers may, on the whole, be said to have
invested abroad both wisely and profitably, and if care and sound judgment
are exercised in the future in the selection and sale of foreign securities
to the American investing public, we may perhaps be spared the losses to
which Continental European creditor nations have at one time or another
been subjected.
Report of Special Committee of Association of Railway
Executives on Desirability of Stability of Employment on Railroads—Adequate Rate of Return
Essential Factor.
The desirability of bringing about as great stability of
employment on the railroads of this country as earnings,
traffic and climatic conditions permit, is recognized in a report just submitted to the member roads of the Association
of Railway executives and made public June 22 by a special
committee appointed in 1924 by the association to make a
study of that subject. Among other things, the report states
that "it is clear that the most influential single factor relating to the stability of labor is the question of net earnings
by the carriers," and while it is not suggested that the present rate of return is inadequate to continue the policies of
stabilization inaugurated, it is pointed out that without a
sufficient basis of net income, the railroads will not be able
to maintain a stabilized condition of employment The members of the special committee were: Chairman, Daniel Willard, President of the Baltimore & Ohio Railroad; L. W.
Baldwin, President of the Missouri Pacific Railroad; H. E.
Byram, Receiver of the Chicago Milwaukee & St. Paul Railway Co.; W. R. Cole, President Louisville & Nashville Railroad; P. E. Crowley, President New York Central Lines;
C. R. Gray, President Union Pacific System; L, F. Loree,
President of the Delaware & Hudson Co.; E. J. Pearson,
President of the New York New Haven . Hartford Railroad
Co., and Samuel Rea, President, retired, of the Pennsylvania
Railroad. In its report the committee says:
Your committee is convinced that stability of employment is invariably
reflected in more efficient and economical operations, and it recommends
that the carriers continue to give sympathetic and constructive consideration to this important problem not only as a matter of fairness to the
employees, but also because such a policy tends to promote efficiency and
economy in operation.
It is the opinion of your committee that there are at least three controlling factors in connection with railroad employment; namely, the lack
of stability in railway income, the lack of stability in traffic and the climatic conditions. It is believed that stability in traffic has been promoted to a very considerable degree by the more dependable character of
the service which the railroads have been able to render for the last two
or three years. With greater stability of traffic there has come at the same
time a greater stability in earnings and more satisfactory net returns, the
railroads being able to handle a uniform flow of business with greater economy than would be the case if the same aggregate amount of business during a twelve-month reriod fluctuated greatly in volume from month to
month.
With the foregoing in mind, your committee is convinced that in order
to bring about and maintain as great a degree of stabilization in labor as
may be practicable, it is most important that there should be a sufficiently
liberal margin between operating revenues and operating expenses, so that
the carriers may be able:
a. To initiate broader policies particularly with reference to their maintenance program, and adopt plans for spreading or distributing such work
throughout the year regardless of current monthly revenues;
b. To eliminate so far as possible temporary or emergency expenditures.
It is clear that the most influential single factor relating to the carriers.
The railway managers as a whole have shown a real desire to bring
about
the greatest possible stabilization of employment, but however their
pathies may run, their action will necessarily be governed to a very symconsiderable degree by the financial condition of their company.
It is not now suggested that the present rate of return, as fixed
by the
Commission, is inadequate or would be insufficient if earned, to permit
such well-considered practices as might be necessary in order
to continue
the policies of stabiltzation thus far inaugurated. It is simply
pointed
out as a fact of fundamental importance that without a
sufficient basis of
net income, the railroads will not be able to maintain a
stabilized condition of employment, however, much they may desire to
do so.
Information which has come to your committee during its
study of the
problem suggests the desirability of a more flexible day
than exists in many
places at the present time, as an element
to be considered in the stabilization of labor. While there seems to be a general
tendency at the present
time to recognize the eight-hour day in most lines of
employment, there is
much to be said in favor of S certain elasticity
in the number of hours to
be worked. If the day could be increased
from eight to nine, and even ten
hours, in time of business activity, and
be reduced to eight hours in times
when business is less active, such a policy
would enable the carriers to
employ a more uniform force throughout the
year and avoid the necessity
of laying off or furloughing large numbers
of men in times of business
recession.
Foreign financing affected during 1926 reached a total of
over $1,892,000,000, bringing America's investments abroad up to
$12,855,000,000,
distributed as follows:
Region—
Amount.
Europe
$3,596,700,000
Canada
3,557,600,000
Cuba
1,508,700,000
After reviewing the traffic and labor situations that
Mexico
1,074,600,000
Central America
faced the railroads from 1920 to 1924, the
205,200,000
report said:
South America
1,973,300,000
The carriers in their effort to handle a
maximum business in .1920 and
China, Japan and Philippines
713.500.000
1923 felt compelled to enlarge their forces in
order to make hurried and
MiscellaneoUs
225,000,000
emergency repairs to equipment, and when business
fell off they were .
200
THE CHRONICLE
forced to make prompt and radical reductions in their operating expenses,
even though the standard of maintenance was still low, because of the nar-row margin which they were earning as a whole above their fixed charges.
This condition, including, of course, the shopmen's strike in 1922, resulted
In violent fluctuations up and down in the number of men employed by the
railroads, and it was with all this in mind that a member of the Inter-State
Commerce Commission in the summer of 1924 suggested that while a num.
her of railroads were endeavoring to find a solution for this problem it
would be well for all the carriers to give special study to the matter. In
response to that suggestion, the action aready referred to was taken and
a committee appointed to investigate the subject.
[VoL. 125.
against a present book value of $267 a share, with substantial reserves in
addition, and the deposits after combining the above institutions will be
over $235.000.000. Our resources will exceed $275.000,000.
The board of directors will recommend to the stockholders'
meeting that the right to subscribe to new stock shall go to
stockholders of record at the close of business on July 19
and that subscriptions therefor be payable at the office of
the.company, 139 Broadway, New York,on or before July 29.
The letter to the stockholders concludes with a statement to
the effect that additional mergers are under consideration.
ITEMS ABOUT BANKS, TRUST COMPANIES, &C. The acquisition of the Commonwealth Bank and The
and twelfth banks
The officers of the National Park Bank of New York gave Standard Bank makes them the eleventh
Co. Following
a luncheon on Tuesday, July 5, in honor of John E. Mar- to be merged with the Manufacturers Trust
the dates when
and
merged
previously
list
the
a
banks
of
is
following:
tineau, Governor, State of Arkansas, and the
effective:
became
mergers
the
Co.
Light
&
H. 0. Couch, President, Arkansas Power
J. Carroll Cone, Auditor, State of Kansas.
Jim B. Higgins. Secretary of State.
Dwight H. Blackwood. State Highway Commissioner.
Ralph Koonce, State Treasurer.
B. T. Hoff. Assistant Secretary of State.
S. M. Garwood, Vice-President, W. B. Worthen Co., bankers, of Little
Rock, Ark.
Merlin Fisher, Deputy State Auditor.
Charles S. McCain, Vice-President of the National Park
Bank, which is the New York fiscal agent of the State of
Arkansas, was formerly President of the Bankers Trust Co.
of Little Rock. Governor Martineau and the above-mentioned officials are in New York City this week to attend to
the signature and delivery of $13,000,000 in Arkansas State
highway bonds which, when completed, will be delivered to
the purchasers at the National Park Bank.
The total resources of the Chase NationalBank of the City
of New York have passed the billion-dollar mark, according
to its statement of condition at the close of business on
June 30, thus making it the second billion-dollar financial
institution in the United States. Actual resources shown in
the bank's statement are $1,042,513,993, an increase of
institution in the United States. Actual resources shown in
the bank's statement are $1,042,513,993, an increase of
$159,679,888 compared with its last previous statement as of
March 23 1927. The distinction of becoming a billiondollar banking institution, which it now shares with the 115year-old National City Bank of New York, coincides with
the fiftieth anniversary of the Chase National Bank which
it is celebrating this year in September. Record-breaking
deposits of $919,608,525 are listed in the bank's statement of
June 30, an increase of nearly $175,000,000 over deposits on
March 23. Capital and surplus remain at $40,000,000 and
$25,000,000, respectively, but the undivided profit account
has expanded from $13,742,735 to $14.679,146. Cash on
hand and due from banks aggregated $365,188,037 on
June 30, compared with $273,814,634 on March 23. Loans
and discounts increased to $529,695,935 against $443,085,176
in the March statement. Holdings of United States Government securities were reduced from $108,100,540 to $91,327,254, and holdings of other securities from $25,877,399 to
$25,243,369. The following table, listing the resources of
the Chase National Bank at ten-year intervals, shows the
growth of the institution since it was founded in 1877:
Organized 1877
1877
1897
1907
1917
Dec. 31 1928
June 30 1927
Total Resources.
$1.042.009
9.560.235
36.391.850
114.310.479
422.460.081
968,987312
1,042.513,993
Arthur E. Boyd was elected an Assistant Cashier of the
Chatham & Phenix National Bank & Trust Co. of this
city on July 7. Mr. Boyd was formerly connected with the
credit department of the Mechanics & Metals Bank, which.
was merged with the Chase National Bank.
Nathan S. Jonas, President of Manufacturers Trust Co.,
in a letter to stockholders announces the proposed mergers
of the Commonwealth Bank and The Standard Bank into
the Manufacturers Trust Co. The Commonwealth Bank
has a total of five offices of which three are in Manhattan,
one in Brooklyn and one in the Bronx, with deposits of
about $22,000,000. The Standard Bank has two offices in
Manhattan, with deposits of about $10,000,000. An increase
in the capital stock of the Manufacturers Trust Co., prior
to these mergers, is also being contemplated, according to
the same announcement, which says:
be
Before these mergers become effective, our present stockholders will
offered the right to subscribe at 3450 a share for a new issue of our stock
amounting to a total of 25,000 shares, in the ratio of one share of new stock
for each four shares now owned. When the stock increase for these purposes
has boon completed, our company will have a capital of $15,250,000 and a
surplus of upwards of $27.500.000, or a book value of 5280, a share
Broadway Bank (of Brooklyn), July 1 1912.
Manufacturers National Bank (of Brooklyn), Aug. 1 1914.
West Side Bank (of New York), June 15 1918.
Ridgewood National Bank (Queens). Sept. 1 1921.
North Side Bank (of Brooklyn), April 28 1922.
Industrial Bank (of New York), Dec. 18 1922.
Columbia Bank (of New York), Aug. 14 1923.
Yorkville Bank (of New York), April 1 1925.
Gotham National Bank (of New York). June 1 1925.
Fifth National Bank (of New York), June 1 1925.
The Manufacturers Trust Co. now has 15 unit offices and
when the proposed mergers are completed it will have a
total of 22 offices. Announcement is also made that Richard
M. Lederer, President of The Standard Bank, and Edwin J.
Beinecke, Chairman of the Commonwealth Bank, will
become members of the board of directors of the Manufacturers Trust Co.
In view of the recent activity in the stock of the Bank of
New York & Trust Co. and the publication of a brokers'
advertisement attributing unusually large earnings to that
institution during the second quarter of the year, Edwin G.
Merrill, President of the company, stated yesterday (July 8)
that the increase in capital, surplus and undivided profits
shown on the statement of June 30 as compared with that
of March 23, did not correctly represent current earnings for
the quarter just ended. At the time the trustees authorized
the payment of a 50% stock dividend, it was decided to
capitalize a substantial amount of profits and appreciation in
value of securities which had been accumulating for several
years and which had not been included in current earnings.
A statement of the condition of the company on May 3 1927,
on completion of the increase of capital stock, was sent to
each stockholder and to every one on the company's mailing
list, although it was not published in the newspapers as there
was no official call. This statement showed capital, surplus
and undivided profits of $18,401,438 as compared with
$18,326,701 on the statement of June 30, after the payment
of the July dividend of $270,000. Mr. Merrill stated that
current earnings of the company were very satisfactory and
compared favorably with those of other years, but that he
hoped that there would be no misunderstanding on the part
of intending purchasers of the stock caused by the unusual
increase in capital, surplus and undivided profits between the
dates of the publication of the last two official statements.
At a regular meeting of the board of directors of the Seaboard National Bank of the City of NeW York on June 30
Harold Russell Robinson and Alfred C. Stousland were
appointed Assistant Cashiers.
•
The statement of condition of the Chelsea Exchange Bank
on June 30 1927 issued under the latest call of the Superintendent of Banks, shows total resources of $23,815,036, a
new high record in the history of the institution, and an increase of $1,895,738 compared with resources of $21,919,298
reported as of March 23 1927. Total deposits as of June 30
1927 also recorded a new high record for all time, amounting
to $20,710,754, an increase of $1,685,041 compared with
total deposits of $19,025,713 reported on March 31 1927.
Net profits for the bank during the quarter ended June 30
1927,also were the largest for any three months pertod in the
history of the bank. The statement just issued showed undivided profits of $624,258, an increase of $102,244 after
dividend payments, compared with undivided profits of
$522,014 reported last March. Based upon the showing for
the second quarter of the year the bank, it is said, is earning
at the rate of more than $525,000 annually on its capital
stock, equal to approximately 35% on the 81,500,000 stook
outstanding.
The condensed statement of condition of the Guaranty
Trust Co. of New York, as of June 30 1927, issued July 5
shows total resources of $754,713,355, deposits of $602,-
JULY 9 1927.]
THE CHRONICLE
482,645, and a total for capital, surplus and undivded
profits of $62,839,229. Total resources, !as of the June 3
1927 statement, represent a gain of $110,210,596 over the
figures as of the corresponding date last year. Deposits
are $82,495,120 greater than on June 30 1926. As compared with the last statement of March 23, 1927 the present
resources show a gain of $68,404,982. Deposits increased
$47,941,759. The June 30 1927 statement gives effect
for the first time to the addition of $5,000,000 to capital
stock and $,000,000 to surplus, approved by stockholde s
on March 11. Capital is $30,000,000 surplus fund $30,000,000, and undivided profits $2,839,229.
201
The previous high levels were $447,000,000 in deposits on
Dec. 31 1924, and in total resources $544,000,000 on Dee.
31 1926.
Charles Edward Prior, for many years a well-known
banker of Hartford, Conn., d!ed at his son's home in Bridgeport, Conn., on June 27 at the age of 71. Mr. Prior, who
was born in Moosup, Conn., entered the banking field in
1863 through his election as Treasurer and Secretary of the
Jewett City Savings Bank, Jewett City, Conn. He held this
position for eleven years. In 18)5 he became Assistant
Treasurer of the Security Trust Co. of Hartford and the
following year was promoted to Secretary and Treasurer.
Horton P. Kennedy has be- en appointed Acting Assistant Subsequently be was advanced to a Vice-President of the
Secretary at the London Office of the Guaranty Trust institution and served in that capacity until 1923, when he
Co. of New York, and Wilfred G. Soltau has been appointed retired from active business and removed to Bridgeport.
Acting Assistant Secretary at the Company's office in
Havre, France. Both appointments were made at a meeting
of the Board of Directors held in New York City on July 5.
The appointment of the Alexander W. Watjen Bank Agency
to represent the Guaranty Trust Company and the Guaranty
Company of New York in Berlin was also announced July 5.
Mr. Watjen has had wide experience in the foreign banking
field, having been associated since 1903 with various financial
institutions in Europe and the United States.
of June 28 stated that Grosvenor
The Hartford "Courant"
Ely had recently been elected a Vice-President of the Chelsea
Savings Bank of Norwich, Conn., filling the vacancy caused
by the death of Willis Austin and that John A. Ferguson
had been elected a director of the institution. Mr. Ely is
a director of the Thames National Bank of Norwich.
Kenneth L. Fleming Jr. has been elected a Vice-President
of the National Shawmut Bank of Boston. He will make
F. P. Fiske, formerly Assistant Vice-President, has been his headquarters in New York in the office of the Shawmut
appointed Vice-President of the Guaranty Co. of New Corp., 14 Wall St.
York, and Karl Weisheit has been appointed Manager fo the
The Peabody Trust Co.—a new Boston financial instituForeign Division, F. P. Shepard Manager of the Industrial
tion—was
chartered by the Massachusetts State Board of
Division, J. N.Land Manager of the Public Utility Division,
Incorporation on June 23, according to the Boston "Herald"
and Raleigh Rife Economist of the company.
--4--
of June 24, which stated that it was the first important
charter granted in Boston in a great many years. The new
bank will be capitalized at $300,000 and will be located in
the heart of Boston's financial district. The exact location
of the institution had not as yet been determined upon, it
was said. The incorporators, many of whom are prominent
David F. Houston was ele- cted a Director of the Inter- in financial circles in Boston, are as follows:
New York Chapter, Inc.,
-of the American Institute of
Banking, announces its removal on June 28 from 15 West
37th St. to the Graybar Bldg., Grand Central Terminal,
420 Lexington Ave.
national Acceptance Bank, Inc., at the regular meeting of
the Board held this week, succeeding the late John T. Pratt.
Mr. Houston, who was Secretary of Agriculture and late':
Secretary of the Treasury during the Wilson Administration,
was recently elected President of the Mutual Life Insurance
Company of New York, to succ'eed-Chiiila—A. Peabody,
resigned. He is at present Vice President of the American
Telephone & Telegraph Co., and President of the Bell
Telephone Securities Corporation. The Board announced
the declaration of the regular quarterly dividend "on the
common and special stock at the rate of 8% per annum on
the paid-in capital, payable July 15 1927 to stockholders of
record of July 7 1927. The statement of the bank as of
June 30 1927 shows total resources of $95,609,720 against
$93,966,779 on the same date last year. Acceptances outstanding totalled $38,813,660 against $37,545,719 a year
ago. Undivided profits of $4,200,033 reflect an increase of
$297,330 over Dece*mber 31 1926 and of $639,278 over June
30 1926. Cash and liquid assets totalled $28,934,882, consisting of Cash and Due from Banks, $6,659,828; Call Loans
Secured by Acceptances, $5,150,000; Acceptances of other
Banks, $5,479,603; and U. S. Govt., State and Municipal
Bonds, $11,645,449. The bank's subsidiary, the International Acceptance Securities and Trust Company, in its
June 30th statement shows total resources of $11,180,828,
with deposits of $10,023,838, capital and surplus of $1,000,000, and undivided profits of $131,195. The company was
organized last year under New York State Laws to provide
domestic banking facilities, in addition to being empowered
to act in trustee and fiduciary capacities. The complete
list of Directors of the International Acceptance Bank, including Mr. Houston,follows: Paul M. Warburg, Chairman,
Daniel G. Wing, Vice-Chairman, Matthew C. Brush,
Newcomb Carlton, Walter E. Frew, F. Abbot Goodhue,
Robert F. Herrick, David F. Houston, L. Naehmann,
George S. Patterson, Charles B. Seger, Lawrence H. Shearman, William Skinner, Philip Stockton, Charles A. Stone,
Henry Tatnall, Felix M. Warburg and Thos. H. West, Jr.
The consolidated statement of condition of The Equitable
Trust Company of New York as of June 30 1927, shows
deposits of 4476,000,000, an increase of $92,000,000 over
deposits reported in the company's preceding statement of
March 23 1927. Total resources amount to over $585,000,000, an increase of $93,000,000 over the March 1927 figures..
The present figures represent the high point in the history
of the company, both as regards deposits and total resources.
Frederic E. Snow, Louis K. Liggett, J. L. Richards, F. Winthrop Batchelder, Winthrop C. Winslow, Henry S. Lyons, William B. Stearns, John C.
Rice, William Holway Hill, Alexander Winger, Robert Winsor Jr., John R.
Chapin, Howard N. Flanders, Clifford M. Brewer, Walter H. Trumbull Jr.,
William B. Snow Jr., and John A. Remick.
Absorption of the Mystic Trust Co. of Medford, Mass., by
the Medford Trust Co., effective June 24, was reported in
the Boston "Transcript" of that date. The acquired institution, which was capitalized at $100,000, with surplus of
$10,000, was organized last fall. It began business in its
branch office on Nov, 5 1926, and opened its main office in
Stevens Square, Medford, about Jan. 1 of the present year.
Both offices, it is understood, will be operated as branches
of the enlarged Medford Trust Co. William Frye White, an
attorney, was President of the Mystic Trust Co. from the
time of its incorporation. Edwin T. McKnight continues an
President of the enlarged Medford Trust Co. Some sixteen
years ago Mr. McKnight purchased control of the Medford
National Bank and reorganized the institution as the present trust company—the resources of which are now somewhat over $4,000,000. The main office of the Medford Trust
Co. is in Medford Square and it maintains a branch in West
Medford.
The Hartford "Courant" o- f June 16 stated that at the
annual meeting of the Society for Savings, Hartford, held
the previous day, new by-laws were adopted which permit
a rearrangement of the personnel of the institution, and in
conformity thereto, Charles P. Cooley, who has been President for seven years, was made Chairman of the Board,
while Robert C. Glazier, who has been Treasurer, was
elected President, which under the new arrangement becomes the title of the active managing officer. Sidney W.
Crofut, heretofore Secretary, was made a Vice-President
while retaining the title of Secretary, and Frank L. Prentice, formerly an Assistant Treasurer, was elected a VicePresident and Treasurer. E. Dana Willis and Lewis H.
Hodge were re-elected Assistant Treasurer. Trustees were
elected as follows:
Wigs H. Whaples, William B. Clark, Samuel G. Dunham, Francis Parsons, George H. Burt, John S. Camp, Charles P. Cooley, John 0. Enders,
Charles E. Chase, Walter L. Goodwin, George G. Williams, Guy E. Beardsley, Robert C. Glazier, Charles L. Goodwin, William D. Morgan, Sidney W.
Crofut, Charles Welles Grow, Archibald A. Welch, Frank A. Hagerty,
Philip B. Gale, George A. Day, Newton C. Brainard, Nathan D. Prince,
L. Edrnund Zacher, Harry S. Conklin, W. R. C. Corson, Benjamin L. Haas,
Robert 13. Newell, Mitchell S. Little, Samuel Ferguson, Morris F. Marks,
James Lee Loomis, Ralph B. Ives, Stillman F. Westbrook, Francis W. Cole,
George S. Stevenson.
202
TEE CHRONICLE
[Vol.. 125.
A statement of the bank's condition presented to the and $2,500,000, respectively, were unchanged, compared with
meeting showed deposits of $50.958,996 and total assets of the last report. Organization fund (unexpended), also unchanged, was shown as $300,000, undivided profits $250,453,
$55,447,257, both items indicating substantial increases.
The growth of Boston as a financial center is shown in the
most recent statement of The First National Bank of Boston.
The June 30 figures of the bank show several deposits of
$328,000,000, which is $20,000,000 more than the total
deposits of all Boston banks twenty years ago. Incidentally,
this is the highest deposit figure it is claimed ever recorded
by a New England bank. Total deposits of commercial
banks in Boston are now nearly four times as great as in
1907, while First National deposits have increased to nearly
eight times their 1907 figure.
The Fidelity Union Tr st Co. of Newark, N. J., on June 30
announced that the Ironbound Trust Co., the City Trust
Co. and the American National Bank which it acquired last
year had begun functioning as branches of the Fidelity
Union Trust Co. In addition, the North End Trust Co.
and the Citizens National Bank & Trust Co., which had
been started by the Fidelity in anticipation of the new
branch bank laws, became branches. Reference to the
proposed consolidation was made in our columns May 21,
page 3020. J. Henry Bacheller, hitherto President of
the Ironbound Trust Co., and Charles Niebling, President
of the American National Bank, have been elected VicePresidents of the Fidelity, and Roy F. Duke has become
Treasurer. All other officers of the affiliated institutions
were appointed officers of the Fidelity Union Trust Co.
The Fidelity Union Trust Co. reports under date of June 30
1927 deposits of $130,050,276 and total resources of $145,181,694. It has a ea ital stock of $6,000,000 and surplus and
undivided profits of $7,984,679.
The Mt. Prospect National Bank of Newark, N. J.,
opened for business on June 27 in its permanent home at
Mt. Prospect Ave. and Heller Parkway. The bank has a
capital of $200,000 and a surplus of $50,000. Alfred L.
Dennis, resident partner of Post & Flagg, investment
brokers, is President of the bank. The other officers are:
Vice-Presidents, William H.Seely and Andrew Van Blarcom;
Cashier, William H. Bowerman; Assistant Cashier, Frank
W. Poland. The directors are: Louis C. Arnold, Horace
A. Bonnell, William H. Bowerman, N. A. Carle, Alfred L.
Dennis, Thomas F. Halpin, Chester R. Hoag, Alonzo D.
Hobbie, William H. Seely, Otto P. Seher, Herbert W.
Taylor, Andrew Van Blarcom, Harrison R. Van Duyne,
Henry Young Jr., and E. T. Steadman.
unearned discount, $92,573, acceptances $281,503, and other
liabilities $16,306.
The cornerstone of the building being erected for the Erie
National Bank of Philadelphia at the northwest corner of
Sixth Street and Erie Avenue was laid on the afternoon of
June 27 with appropriate exercises and in the presence of
the officers and directors of the institution, according to the
Philadelphia "Ledger" of June 28. The Erie National Bank,
which opened on Feb. 1 last, as noted in our issue of Feb. 5,
page 745, is occupying temporary quarters at 3824 North
Fifth Street. It is capiltalized at $250,000 and has a surplus
of $50,000. The officers are as follows: Allan Sutherland,
President; Charles D. Jones, J. Wesley Masland and Joseph
Lynn Aylesworth, Vice-Presidents, and Julius P. Leof, Cashier. Completion of the new building is anticipated shortly.
According to the Philadelphia "Ledger" of June 28, Col.
Milliard 0. Brown, President of the Continental Mills of
Germantown (Philadelphia), Pa., has been made a director
of the National Bank of Germantown. Officers of the institution are Walter Williams, President; John C. Knox,
Vice-President and Cashier, and Edward Meadoweroft,
Assistant Cashier.
On June 14 Edward R. Westerburg, former Cashier of the
National Bank of North Hudson, Union City, N. J., together
with George Brower Jr., former Assistant Cashier of the
same institution, were indicted by the Federal Grand Jury
for alleged conversion of the bank's funds, according to
special advices from Newark on June 15 to the "Jersey Observer" of Jersey City. As noted in the "Chronicle" of
Aug. 7 1926 (page 671), both these defendants were arrested on July 23 of that year charged with embezzlement,
misapplication of funds and conspiracy to defraud, following the discovery of a shortage at the bank in the accounts
of depositors of approximately $109,000, the defalcations
-dating back over a period of two years. Each defendant
blamed the other for the shortage. Both were subsequently
released on bail, the amount of Westerburg's bail being
fixed at $25,000 and that of Brower's at $5,000. The dispatch mentioned stated that the former.bank officials would
probably be surrendered to the court shortly to make their
pleas. It was furthermore stated that several attempts had
been made by the bank to recover some of the money by
attaching properties and moneys of Westerburg in other
The Bergen Avenue Trust Co. at Bergen and Fairmount institutions.
Ayes., Jersey City, was merged on June 30 with the Commercial Trust Co. of New Jersey. The Bergen Avenue
Trust Co. had been established several months ago through
a subsidiary of the Commercial Trust Co. with a view to
making it a part of the Commercial Trust Co. The Commercial Trust Co. now has three branches.
At a special meeting on June 28 the stockholders of the
First National Bank of Belleville, N. J., voted to increase
the capital of the bank from $200,000 to $300,000. The
new stock, 1,000 shares, was sold to the present shareholders
at $150 per share in the ratio of one share for two owned.
The premium of $50,000 will be applied to surplus, making
it $100,000. At the same meeting the following were added
to the board of directors: Joseph King, Daniel Mellis,
Philip J. Murray, Theodore Sandford, Martin F. Tiemen,
Edmund A. Rung and Walfred Peterson. The enlarged
capital will become effective Aug. 1.
The statement of condition of the Guardian Trust Co. of
New Jersey as of June 30 1927, shows new high records for
both total resources and deposits since the organization of
the bank on Aug. 2 1926. Resources, according to the current statement, totaled $23,593,303, against $19,591,945 reported on March 23 1927 and $14,971,139 reported on the
opening day of business last August. Deposits as of June 30
1927 totaled $15,152,468, against $10,513,695 reported on
March 23 last and $7,012,048 reported on Aug. 2 1926. The
current total represents an increase of approximately 116%
in deposits in less than a year. The detailed statement of
The new banking house of the Burlington County Trust
Co. at Moorestown, N. J., was opened for business on
July 1, according to the Philadelphia "Ledger" of that
date. On the previous evening hundreds of guests of the
institution, among them many Philadelphia bankers and
leading business men, inspected the new structure. The
building, the cornerstone of which, was laid on Jan. 31 last
was designed by Simon & Simon, Philadelphia architects,
and erected at a cost of approximately $250,000. It is
Georgian in style of architecture and built of Indiana limestone. The interior is equipped with the latest banking
facilities. The personnal of the institution, which was
founded in 1890, is as follows: Dr. Joseph Stokes, Chairman
of the Board; J. Clement Hopkins, President; George B.
Evans, Joseph H. Roberts, Vice-Presidents; Charles W.
Stokes, Vice-President and Secretary; William R. Lippincott,
Treasurer; Armitt H. Coats, Trust Officer; David R. Lippincott, Assistant Treasurer, and William D. Lippincott
Solicitor.
The election on June 30 of George Stuart Patterson as a
director of the Central National Bank of Philadelphia was
reported in the Philadelphia "Ledger" of July 1. Mr.
Patterson is a member of the cotton firm of Gerorge H.
McFadden & Bro. of Philadelphia, a trustee of the Western
Savings Fund Society of that city, and a director of the
International Acceptance Bank, Inc., of New York.
William J. Maurer has been elected a Vice-President of
the Queen Lane National Bank of Germantown (Philadelcondition showed time loans aggregating $2,137,795, disphia) to succeed E. McLain Watters, who resigned as Vicecounts totaled $13,493,692, demand loans $1,794,909, stocks President
and a director, according to the Philadelphia
and bonds $2,264,836, bonds and mortgages $149,020, cash on
"Ledger" of June 29. Mr. Maurer is associated with F. W.
hand $3,437,104, customers' acceptances liability $239,852,
Maurer & Sons Co., textile manufacturers.
and other assets $76,093. Capital and surplus of $5,000,000
JULY 9 1927.]
THE CHRONICLE
The Braddock National Bank, Braddock, Pa., on June 30
increased its surplus fund out of undivided profits account to
$1,000,000, making the combined capital and surplus of
the institution $1,500,000, according to the Braddock "Daily
News-Herald" of that date. Deposits of the Braddock National Bank, together with those of the Bessemer Trust Co.
of Braddock, its affiliated institution, now amount to over
$15,500,000. J. G. Kelly and' George A. Todd, President
and Vice-President, respectively, of the institution, report
that the bank's business for 1927 shows a satisfactory increase.
The First National Bank of Jeannette, Pa., has purchased
the assets of the People's National Bank of that place, with
deposits of $1,500,000, according to the Philadelphia
"Ledger" of June 25. The acquired institution, it is said,
Is being operated as a branch of the. enlarged First National
Bank, and no change in personnel is planned at present.
According to the Washington
- "Post" of July 1, effective
that day the Central Savings Bank of Washington was
merged with the Security Savings & Commercial Bank of
that city. The former quarters of the Central Savings Bank
at 710 Fourteenth Street, N. W., is now operated as a branch
of the enlarged Security Savings & Commercial Bank. A
commercial department, it was said, will be added to the
savings business heretofore conducted by the merged Central
Savings Bank, thus placing every modern banking facility
at the disposal of the customers of the enlarged bank at its
uptown location. J. William Roberts, formerly Cashier
of the absorbed institution, will be manager of the branch
office.
A special meeting of the s-tockholders of the Drovers' &
Mechanics' National Bank of Baltimore will be held on July
11 for the purpose of voting on the proposed increase in the
capital of the institution from $600,000 to $1,000,000, as recommended by the directors on June 21. Reference to the
proposed increase in the capital of this bank was made in
our issue of June 25, page 3727.
That the Mellon group of banks in Pittsburgh are planning
to open a new institution in the Oakland district of Pittsburgh
was reported in the Philadelphia "Ledger" of July 6. The
new institution, it was stated, which will be the fourth bank
in Pittsburgh under Mellon management, will probably be
a trust company and will be independent of the other Mellon
banks, namely, the Mellon National Bank, the Union Trust
Co. and the Union Savings Bank. Work is already ur der
way on a building for the institution. Richard K. Mellon,
Assistant Cashier and a director of the Mellon National
Bank, will either manage the bank or will hold an important
position in it.
The appointment of two new officers is announced by the
Mellon National Bank of Pittsburgh. C. B. Fergus, formerly
manager of the Foreign Bureau, and Thomas L. Orr, formerly Manager of the Bond and Investment Bureau, have
both been made Assistant Cashiers. V. J. Usher, formerly
with the Guaranty Trust Co. of New York, succeeds Mr.
Fergus as Manager of the Foreign Bureau.
W. F. Wiley, General Manager of the Cincinnati "Enquirer," was elected a director of the Fifth-Third-Union
Trust Co. of Cincinnati at a special meeting of the board on
June 28, according to the Cincinnati "Enquirer" of the following day. With Mr, Wiley's election the number of directors of the institution has been increased to 32.
On June 22 the Pennsylvania National Bank of Pittsburgh
and its affiliated institution, the Pennsylvania Savings Bank
formally reopened their remodeled banking quarters at
Penn Avenue and Butler Street, that city, according to the
Pittsburgh "Gazette" of June 20. While the changes were
being made, both banks conducted business in the sub.-floor
of the building, which Is now in turn, it is understood, being
remodeled for use by the foreign department of the
Pennsylvania National Bank. Among the improvements
is the
Installation of a new vault of steel. Seals of the
United
States and of the State of Pennsylvania decorate walls of
the main banking room. Joseph A. Kelly is President of
both institutions. Other officers of the national bank are
II. T. Aufderheide, Vice-President and Cashier, and 0. W.
Brose, Assistant Cashier. Other officers of the savings
bank are A. L. Lewis and H. T. Aufderheide, Vice-Presidents, and C. S. Bennett, Cashier.
203
That the combined capital and surplus of the Cleveland
Trust Co., Cleveland, would be increased to $15,000,000
was reported in a dispatch from that city on June 30 to the
"Wall Street Journal," which continuing said:
This is In accordance with stockholders' ratification at annual meeting
last January, when increase of $1,400.000 in capital was authorized and
additional stock was sold stockholders at $160 a share on the basis of approximately 16% of their holdings as of April 20.
Proposed increase in the trust company's capital from
$8,600,000 to $10,000,000 by the issuance of additional stock
at $160 a share to stockholders of record April 20, to a total
of 16% of their holdings, was noted in the "Chronicle" of
Dec. 11, 1926, page 3000.
A publicity plan to draw
attention to the opening of a
new building called the "Treasure Hunt" and originated by
the Cleveland Trust Co., of Cleveland, Ohio, was successfully used at the opening of the 20th branch of the Citizens
Trust & Savings Bank of Los Angeles. This office is at
Wilmington, the harbor town, which is within the city limitsof Los Angeles, though located at some distance from the
main business centre, and the bank has erected a two-story
building to house the branch which was opened in temporary quarters last fall. The day before the opening therewas delivered at every home in Wilmington a key with a
tag attached. Most of the keys were dummies, but mixed
in with the rest were forty that fitted the lock of the
"Treasure Chest" displayed In the bank lobby. The holders
of these keys were given prizes consisting of savings accounts with various initial deposits. The Wilmington office
is under the management of A. M. Mathews, formerly VicePresident of the Colorado Bank & Trust Co. of Delta, Col.
The Midway State Bank, Chicago, reports deposits of
$650,381, as compared with $145,833 when the bank started
operations six months ago.
Advices by the Associated Pross from Springfield, Ohio,
on June 18,.appearing in the "Ohio State Journal" of the
following day, stated that announcement has been made
on that day of the proposed consolidation of the Lagonda
National Bank and the Citizens' National Bank, both of
Springfield, under the title of the Lagonda Citizens' National
Bank with resources of $4,000,000. General J. Warren
Keifer, it was said, President of the Lafonda National Bank
was retiring from active duty at the age of 91 and would
become Honorary President of the new institution. General
Keifer has served either as Vice-President or President of
the Lagonda National Bank for more than fifty-four years.
He is still active and appears daily at the bank and at his
law office. The dispatch furthermore stated that General
Keifer is the only surviving Major General of the Civil War
and aside from Frederick H. Gillett of Massachusetts, is
the only living ex-speaker of the National House of Representatives.
Merlin M.Dunbar,for the p- ast seven years Assistant Trust
Officer of the Union Trust Co. of Indianapolis, was elected a
Vice-President of the institution at the annual meeting of the
directors on June 15, according to the Indianapolis "News"
of the following day. Other officers of the company were reelected as follows: Arthur V. Brown, President; John E.
Reed, Senior Vice-President; Harry F. McNutt, Treasurer;
Alfred F. Gaulding, Secretary; George A. Biskirk, Trust
Officer; Charles T. Bizzard, Auditor; Charles N. Fultz,
Assistant Trust Officer; Cornelius 0. Alig and J. Floyd King,
Assistant Treasurers, and Richard A. Kurtz, Alan A. Richie
and Evezett E. Lett, Assistant Secretaries.
Evar G. Swanson and Wil- liam L. Martin were recently
elected Vice-Presidents of the South Side Trust & Savings
Bank of Chicago, according to the Chicago "Journal of
Commerce" of June 28. Mr. Swanson, the paper mentioned
said, has had an extensive experience in the banking business,
having been for a number of years an examiner of the Chicago
Clearing House Association, while Mr. Martin, who will be
in charge of sales in the bank's investment department, has
been with the South Side Trust & Savings Bank for the past
fourteen years.
On Wednesday of thisweek (July 6) the newly organized
Guaranty State Bank of Detroit, an affiliated institution of
the Guaranty Trust Co. and Guaranty. Investment Co. of
that city, opened its doors. The new bank, which occupies
the ground floor of the Guaranty Trust Building at Woodward Ave. and Congress St., is .capitalized at $2,000,000,
with surplus of $1,000,000. Frank G. Smith, President of
the Guaranty Trust Co., heads the institution, the other
204
THE CHRONICLE
officers being: Arthur E. Swanson and W. Magruder Jones
(Vice-Presidents of the Guaranty Trust Co.), Vice-Presidents; Charles McMichael (until recently an Assistant
Cashier of the First National Bank of Detroit), Cashier;
E. H. Wyatt (formerly Manager of the land contrast department of the Guaranty Trust Co.), Assistant Cashier, and
M. R. Jerome (Auditor of the Guaranty Trust Co.), Auditor.
Mr. Smith, the President of the new bank, according to the
Detroit "Free Press" of July 6, has been identified with
banking interests in Detroit for the past forty years, starting
as a messenger for the First National Bank and working up
to the position of Vice-President. He resigned from the
First National on Jan. 10 of the present year to assume the
Presidency of the Guaranty Trust Co. An item regarding
the formation of the Guaranty state Bank appeared in our
issue of May 14 last, page 2861. The Detroit "Free Press"
in its issue of July 7 reported that more than 5,000 visitors
attended the opening of the new bank, and hundreds of floral
gifts were received by the officials to mark the occasion.
According to a dispatch by the Associated Press from
Benton, EL, on June 28, appearing in the New York "Times"
of June 29, William Lovel Jr., former Cashier of the Bank
of Royalton, Royalton, Ill., pleaded "guilty" on that day to
the embezzlement of approximately $58,000 of the bank's
funds and was given an indeterminate prison term. A special dispatch from Royalton to the St. Louis "Globe-Democrat" of June 26 reported the closing of the Bank of Royalton on June 24, following the admission by Lovel that he
was short in his accounts, his peculations dating back to
1924. This dispatch said in part:
Investigators attempting to find what disposition was made of the $60,000 which William J Lovel, Cashier of the Royalton State Bank here,
admits having embezzled, will probably re-examine the recent Zeigler, Ill.,
bank shortage, for which Lovel's cousin, E. J. Love!, also a bank cashier,
was given a sentence of nine years in the Penitentiary, it was learned here
to-night.
The theory of this investigation hinges on the personal and business relations between the two. It Is believed William Love!, in an attempt to
make good the defalcations of his cousin used money of the Royalton Bank
in the futile fight to save him from the Penitentiary.
Although admitting the embezzlements which forced the cicsing of the
Royalton Bank last Thursday (June 24), Lovel refused to discuss the shortage with reporters.
"I just showed poor judgment in speculations," was all he would say.
Among the alleged worthless notes uncovered by the bank examiner was
one for $2,010 from Level's cousin but the date and other details could
not be learned.
(VOL. 125.
The Minneapolis Trust Co. was organized Nov. 1 1888 with Samuel
Hill. son-in-law of the late James J. Hill. as President; the late Thomas
Lowry, founder of the Minneapolis Street Railway Co. as first VicePresident and H. G. Harrison, father of Perry Harrison of the Winston &
Newell Co. as second Vice-President. The Secretary and Treasurer was
Clarkson Lindley. The original name of the institution was the Minneapolis
Loan & Trust Co., and its first offices were at 300 Kasota Building. In
1889 the name was changed to Minneapolis Trust Co. In the fall of 1894
the company moved to 331 Hennepin Avenue; in 1900 to 4 South 4th Street
and in 1906 to the south wing of the then new First National Bank Building,
at Marquette and Fifth Street South. On May 5 1913 Minneapolis Trust
Co. became affiliated with the First National Bank through a joint ownership of stock.
At the time of organization the only functions of the company were to
execute trusts, provide safe deposit facilities and lend money on city
mortgages. As the scope of the work increased other departments were
added to handle city real estate, farm loans and the distribution of securities.
In 1918 a banking department, handling both commercial and savings
business was started. In 1925 the Wells Dickey Trust Co. was merged
with Minneapolis Trust Co.
Elbridge C. Cooke and Robert W. Webb remain as
Chairman of the board of directors and President, respectively, of the First Minneapolis Trust Co., while W. H.
Lee becomes Chairman of the Finance Committee. All the
other officers of the trust company will remain in their
present capacities, while W. F. McLane. formerly VicePresident of the Hennepin County Savings Bank will be
Vice-President of the new company at the head of the
Banking Department. Elbridge C. Cooke is Chairman of
the board.
The consolidation will give the First Minneapolis Trust
Co. a capital and surplus of $2,200,000, with deposits
totaling $25,000,000. In making this announcement Robert
W. Webb, President of the new First Minneapolis Trust Co.,
Says:
The union of Minneapolis Trust Co. and the Hennepin County Savings
Bank is a source of real satisfaction to the officers and directors of both
Institutions. It will mean more complete and efficient service for our
customers and more economical administration of the affairs of the company. The Joint ownership of the stock of the consolidating banks and
their contiguous location have brought about a frinedly spirit of co-operation
which will make the consolidation easy of accomplishment and which
will work to the advantage of depositors. Only the Banking Department
operated by Minneapolis Trust Co. will be moved into the quarters of
the former Hennepin County Savings Bank at 511 Marquette Ave., and
all other departments of the organization will remain at 115 South Fifth
St. The consolidation is effective at once. Physical changes will be
effective July 1.
L. E. Wakefield, President of the First National Bank
in Minneapolis, the parent institution of the group, which
includes the First Minneapolis Trust Co., the newly organized
Minnehaha National Bank, the Bloomington-Lake National
The dispatch also stated that it is believed further inves- Bank, and the St. Anthony Falls, North Side and West
tigation of the bank's accounts will reveal a shortage in pre- Broadway offices, says:
In bringing about the consolidation of the Hennepin County Savings
vious years which may bring the bank's total loss up to Bank
and the Minneapolis Trust Co.. we had in mind primarily the inin
1919.
was
organized
of
Royalton
Bank
The
$100,000.
creasing of our ability to extend the highest grade service to out many
most convenient and
According to the dispatch, it was the only bank in Royalton, customers and to give that service in theismanner
in keeping with the modern
satisfactory to them. This consolidation
of
deposits
approximately
had
and
community,
•mininm
a
trend of business and will enable Us to offer unusually complete facilities
$460,000.
through the use of our varied associated institutions to those needing
financial service of any kind in Minneapolis."
A consolidation of the Minneapolis Trust Co. & the
Hennepin County Savings Bank, effective at once, was
announced June 30 after a meeting of the board of directors
of the consolidated corporation. The name of the consolidated institution will be the First Minneapolis Trust Co. and
with the exception of Vincent F. McLane, who a few weeks
ago was elected Assistant Cashier of the First National
Bank of Minneapolis, all of the officers and employees of
the two organizations will continue with the new company.
Of the ten trustees of the Hennepin County Savings Bank
five were already members of the board of directors of
Minneapolis Trust Co. and will continue as directors of the
new company. The remaining five, W. H. Lee, David P.
Jones, W. F. McLane. Russell H. Bennett and Earl Partridge, have been elected to the directorate of the First
Minneapolis Trust Co. Regarding the history of the two
uniting institutions the following information is supplied:
The Hennopin County Savings Bank, one of the oldest of the commercial savings banks in the State of Minnesota, was chartered in 1870
under the savings bank law effective during the pioneer days of the State.
The first President was Edwin S. Jones, father of David P. Jones who for
some 35 years has been a member of the board of directors. The original
location of the bank was at No. 7 Center Block where Gateway Park now
Is. In 1874 the bank moved to the north west corner of Hennepin and
Washington Avenues. Eighteen eighty-nine found the bank in the old
Atheneum Building which also stood on the present location of Gateway
Park. In 1895 the bank moved to the Phoenix Building taking the quarters
now occupied by the North American Telegraph Co. Following the move
of the First National Bank in 1997 to its present location the Hennepin
County Savings Bank occupied the ground-floor corner of the Phoenix
Building where it remained until moving to its present location at 511
Jones in 1890.
Marquette Avenue in 1924. At the death of Edwin S.
John E. Lel! became President of the Hennepin County Savings Bank and
the active
been
has
who
In 1909 he was in turn succeeded by W. H. Lee
ComPresident ever since and who now becomes Chairman of the Finance
mittee of the First Minneapolis Trust Co. Mr. Lee was first made an
officer of the bank in 1881 and has been a trustee for forty-five years.
In 1922 the stock of the Hennepin County Savings Bank was purchased
by the stockholders of the First National Bank. since which time the bank
has been a member of the First National group.
The Des Moines "Register" of July 2 stated that announcement was made the previous night by officials of
the Euclid Avenue State Bank of Des Moines that a large
block of the institution's stock had been purchased by
Major G. B. Jensen. Major Jensen, it was said, would
become President of the bank under the new regime, while
Carl Hummell, the former President, would become Cashier,
filling the vacancy made by the recent resignation two months
previously of K. P. Pottorff. The paper mentioned went
on to say that Major Jensen, who is a World War veteran,
has large business holdings. For several years he has been
part owner and a director of the Polk City Savings Bank,
Polk, Iowa. He is President of the Jensen Motor Co. and
owner of the Polk City Light & Power Co. The Euclid
Avenue State Bank of Des Moines was organized more than
ten years ago.
Advices by the Associated Press from Little Rock, Ark.,
on June 27, printed in the Cincinnati "Enquirer" of the following day, reported that the Bank of Commerce of McGehee,-one of' the larger cities in southeastern Arkansas,
affected by the recent flood, had closed its doors on that
day (June 27) and was placed in the hands of the State
Banking Department. The dispatch furthermore stated
that conditions resulting from the flood were said by officials of the Banking Department to have been partially
responsible for the bank's closing.
According to the Memphis"Appeal" of June 26 a reorgani
zation of the directorate of the Liberty Savings Bank & Trust
Co. of that city, which had been going on quietly for several
weeks, was completed on June 25 with the election as
Chairman of the Board of Directors of J. P. Norfleet,capitalist, planter and head of the cotton firm, Sledge & Norfleet
JULY 91927.]
THE CHRONICLE
205
Co. At the same meeting of the directors, J. R.Buchignani,
This satisfactory performance. he explained in his report, was the direct
heretofore the bank's cashier, was elected President and result of operating economies resulting from the consolidation of the Merchants' National and Hellman Commercial banks, which was effected bat
John M. Fox, Jr., Vice-President. 'Other officers, it was year.
On the outstanding capitalization, the net profits before dividends were
said, were named at a meeting of the board following the
death early in the year of M. G. Bailey, P,esident and the equivalent to $18 a share for the six months, or at the annual rate of
Alter the distribution of the two quarterly dividends of $4 each, the
$36.
founder of the institution. With the election of Mr. Norfleet as Chairman of the board twelve other leading business balance was the equivalent to $10 a share for the six months' period.
Mr. Nolan, it was furthermore stated, announced the
men of Memphis were added to the directorate. Continuing,
promotion of J. A. Westmoreland from an Assistant Cashier
the paper mentioned said:
Mr. Norfleet has had a wide experience in business and finance and to a junior Vice-Presidency
Is regarded as one of the ablest and most successful men of Memphis. At
the end of the meeting yesterday he announced that he would leave shortly
for a business and pleasure trip to Europe. During his absence J. M.
Walker will act temporarily in Mr. Norfieet's place as head of the board.
Mr. Buchignani's elevation to the presidency is regarded in business
circles as a deserved promotion. He was one of the organizers of the
bank and acted as its cashier from the start. Since a few weeks before
the death of M. G. Bailey he has been its actual directing hand.
The Liberty Bank has been going since 1917. It first occupied quarters
on Madison Ave., later moving to the grade floor of the Porter Building.
It purchased its own home, the old First National Building, a few months
ago and took up its quarters there.
On June 16 A. E. Huntington, a Vice-President of the
California Bank of Los Angeles, was elected President of
the California National Bank of Beverley Hills, Cal.,an
institution recently organized by interests identified with the
California Bank and to which reference was made in our
issue of June 4, page 3306. In reporting Mr. Huntington's
election, the Los Angeles "Times" of June 17 stated that
he had been identified for some years with the activities
of the California Bank and the California Group Corporation,
an affiliation of the former) and had been instrumental in
the establishment of offim s in many of the distric s where
the California Bank operates. Other officers elected for the
new Beverly Hills ank are:(. H. Bu.lingame, Vice-Pros.,
and B.E. Brownell,Secretary and Treasurer. The directors
chosen include:
According to the St. Louis "Globe-Democrat" of June 9,
William H. Beckman, former President of the defunct Citizens' State Bank of Alhambra, Ill. (the closing of which on
May 26 and subsequent discovery of a shortage of $16,000,
were referred to in our issue of June 11, page 3456), appeared before Justice of the Peace James B. Dale in Edwardsville, Ill., on June 7 and requested that a warrant be
W. R. Frazer, manager of the Harold Lloyd Studios; J. A. Cornelius,
issued for his arrest. Mr. Beckman, it is understood, had real estate operator of Beverly Hills; Judge M. Kavanaugh and R. R.,
Pollock, capitalists; A. E. Huntington, Leo S. Chandler, T. E. Ivey Jr.
waited since the discovery of the shortage for someone to J. B. Chaffey and C. H. Burlingame, bankers; George E. Se.hindhelm,
prosecute him, A warrant charging embezzlement of $5,000 Vice-President, California Securities Co., and Charles E. Donnelly, of
of the bank's funds was issued by State Attorney Jesse R. the law firm of Swanwick & Donnelly.
Mr. Huntington was quoted as saying: "The California
Brown, it was stated, and the former President waived a
preliminary hearing and was bound over to await the action National Bank will be an independent national bank operof the Grand Jury in October next, giving bond for his ap- ated on the principles of sound and conservative banking
service to Beverly Hills and adjoining territory." As noted
pearance. The paper mentioned went on to say:
Beckman, who bank examiners say, is short $16,000 in his accounts as in our previous item, the bank will start with a capital of
President of the bank, voluntarily asked that he be arrested after he had $100,000 and surplus of $25,000.
spent several hours in conference with his attorney, Robert W. Tunnell of
Edwardsville. No complaint has ever been lodged against him by any of
the depositors or other officials of the bank. There is no move on the
part of the depositors to prosecute, as they have been assured the shortage
in the bank will be made good and they will be paid in full.
It is understood, however, the bonding ccmpany which underwrote Beckman's $10,000 bond as President of the bank, will prosecute. Beckman
also is said to be $18,000 short in his accounts as Treasurer of the Alham•
bra township school district, and $1,800 short as Treasurer of the Alhambra Telephone Co.
George W. Robertson, who has been manager of the bond
department of the Canal Bank & Trust Co. of New Orleans'
since 1923, has recently been elected a Vice-Pres dent of
the bank and will continue as manager of the bond department as heretofore. Mr. Robertson has been active
on the following committees: Marine Secuirties Committee,
Investment Bankers Association, 1925; Taxation Committee
(1926); Legislative Committee (1927); Chairman Legislative
Committee for the Southern Group, I. B. A., for last two
years.
The following in regard to its mid-year quarterly statement has been issued by the Bank of Italy (Bank of Laly
National Trust & Savings Association), San Francisco:
An index to the statewide prosperity of California is furnished in the
current mid-year statement of the Bank of Italy showing a gain in deposits
during the past three months of more than 831.000.000.
Aggregate deposits of the bank are in excess of $600.000.000, as compared
with $569.000,000 at the time of the last report—March 23. The increase.
therefore, has been at the rate of more than $2,250,000 a week for the entire
period. At the same time, the number of depositors has grown from 1,065.000 to 1.140,000, easily preserving for the Bank of Italy its rank as
first in the United States in point of patronage.
Resources of the bank have increased $21,000.000—from $654.000.000
to $675.000,000—during this same period. The chief gains, in addition
to deposits, are shown in the surplus and profits account, where an increase
of over $3.000.000 is shown.
James A. Bacigalupi, president of the bank, said that the quarter Jun
closed has been one of the most satisfactory in the history of the institution.
"The more than three millions of dollars, added to the surplus and profits
account, after all charge-offs. deduction of expense items, payment of
Interest and dividends, while accounted for in part by certain profits accruing
from adjustments, upon the perfection of the bank's consolidation, still
evidences the substantial progress the bank is making. The fact that our
board of directors has seen fit to increase the dividend rate is in itself ample
proof of their confidence in the earning power of the instutition.
The Bank of Italy. together with the National 13ankitaly Company,
(formerly the Stockholders Auxiliary Corporation). the stock of which is
owned by the stockholders of the bank, now has a combined capital investment of $100.000,000. Of the total, more than $60,000.000 IS in the capital,
surplus and profits account of the Bank of Italy.
An application to convert th- e Peoples State Bank of Tyler,
Texas into the Peoples National Bank of Tyler, Texas was
received by the comptroller of the Currency on June 7.
The institution will have a capital of $100,000 and surplus
of $46,000. The National Bank will continue under the
same officers as the State bank viz.: Sam R. Greer, President; C.J. Brogan, Dr.Edgar H.Vaughn and S. A. Lindsey,
Vice-Presidents; J. M. Stephens, Cashier; H. M. Eagle,
A proposed increase in the capital stock of the First
W.J. Stephens, Jas. R. Harrell, Sam M.Cohen, Mrs. F. R.
National Bank of Tillamook, Ore.,from $59,000 to $100,000,
Coker, and Robert Spence, Assistant Cashiers.
was authorized at a recent meeting of the stockholders of the
the Los Angeles "Times" stated institution, according to a special dispatch from that place
In its issue of July 1that according to an announcement made June 30 by Perry on June 13 to the Portland "Oregonian." The increase is
W. Weidner, President of the United States National Bank effective as of July 1 and gives the bank a combined capital
of Los Angeles, A. Sieroty, Vice-President and General and surplus of $150,000 and total resources of nearly $2,000,Manager of the Eastern Outfitting and the Columbia Out- 000,000, placing it, the dispatch stated, in a class with the
fitting companies, had been elected a director of the bank larger country banks of Oregon. It was furthermore stated,
to succeed the late Robert Wagner, whose death Occurred that C. J. Edwards, formerly President of the
Coast Power
recently. According to the paper mentioned the capital
stock of the United States National Bank is being increased Co. of Tillamook, will take an active part in the management
from $750,000 to $1,000,000. The stockholders being of- of the bank commencing July 1, according to W.J. Riechers,
fered the privilege of purchasing the new stock of $160 a Vice-President and Manager of the institution.
share (par value $100 per share) in the ratio of one new
Guy N. Hickok, for the past two and a half years Asshare for each three shares already owned. Mr. Weidner
announced that stockholders were subscribing for the new sistant State Superintendent of Banks for Oregon, has
stock lately offered at a rate that would exhaust the amount become Assistant Vice-President of the Hibern!st Comauthorized under the increase by the time the right to sub- mercial & Savings Bank of
Portland, Ore., according to
scribe expired.
the "Oregonian" of June 19. Mr. Hickok began his bankE. J. Nolan, President of t- he Merchants' National Trust ing career 13 years ago as Cashier of the Aurora State
& Savings Bank of Los Angeles, reported to the directors Bank, Aurora, Ore. and later became Cashier of the
of the institution on June 30, that after all charges and Glendale State Bank of Glendale, Ore. He
left this latter
expenses, and the payment of dividends for the first two
position
staff
to
of
join
the
the
DepartBanking
State
quarters of the year, the bank allocated approximately
$400,000 to undivided profits, according to the Los Angeles ment as a Deputy Superintendent. He next served as one
of the State bank examiners, and finally about the be'Times" of June 30, which continuing, said:
•
206
THE CHRONICLE
[VOL. 125.
During the early trading on Thursday prices maintained
ginning of 1925 was made Assistant Superintendent of
Banks, the position he recently resigned to accept the their upward trend, speculative enthusiasm receiving added
stimulus by the drop in the call loan renewal rate to 4% for
Portland bank's offer.
the first time since June 27. The most noteworthy feature
%
• The American National Bank of Aberdeen, Wash., a of the day was the advance of Baldwin Locomotive 23
newly organized institution, opened its doors on June 18. points to a new peak at 239%, followed by a loss of nearly
according to a special dispatch from Aberdeen on that date 3 points in the downward reaction later in the afternoon.
lo the Portland "Oregonian". The new bank is located in Railroad stocks were prominent in the early upswing, Atlantic
handsome banking quarters in the Becker Building and Coast Line moving forward 2 points, New York Central
starts with a capital of $400,000, surplus of $100,000 and selling up to 150 and Kansas City Southern crossing 63,
undivided profits of $25,000. Its officers are as follows: as compared with Wednesday's final of 60%. St. Louis
Gaylord Adams, President; William E. Lamoreaux, Vice- Southwestern moved up 2 points and Mo.-Kan.-Tex. did
President, and James H. Fuller, Cashier. A charter for equally well. In the oil group prices were generally irregular
the institution was issued by the Comptroller of the Cur- and the motor stocks made little or no progress. Collins &
Aikman was the strong stock of the specialties group and
rency on June 17.
moved to its highest peak in all time, with a gain of 7 points
Aggregate resources of $1,723,998,812, as compared with to 123. Tobacco issues moved into sudden favor, Congress
41,698,778,402 a year ago, are reported by Barclays Bank Cigar advancing to a record high when it crossed 65,and both
Limited in its semi-annual statement of condition as of Bayuk and General Cigar sold at new top prices. Public
June 30, details of which were received by cable on July 7 Utility stocks displayed considerable improvement, both
by the representative's office of the Bank at 44 Beaver Brooklyn Edison and Consolidated Gas making substantial
Street. Advances to customers and other accounts totalled gains. Commercial Solvents "B" was in strong demand for
4810,060,220, an increase of more than $32,000,000 as com- a time and shot upward 10 points to 365, but later in the
pared with $777,833,020 on June 30 1926. Money at call session reacted to 35732. Dodge Bros. "A" pref. shares
and short notice increased from $107,355,125 to $120,597,295, were the weakest stocks of the day and moved steadily downwhile cash in hand and with the Bank of England amounted ward, making a new low record below 67.
to $241,090,104, compared with $224,239,074 a year ago.
On Friday the market was somewhat confused and unsetOn the side of liabilities, deposits climbed during the year tled, most stocks moving without definite trend. Railroad
from $1,521,237,304 to $1,542,693,359. The capital of the shares were fairly strong; Kansas City Southern assuming
Bank now stands at $79,291,085 and its reserve fund at the leadership of the group and moving briskly forward to a
•$51.250.000. $5,000,000 having been t ansferred to the new peak above 66 and Lehigh Valley closed with a net gain
latter account at the end of last year. All figures in the of 2 points. Houston Oil was the feature of the trading and
statement have been converted into dollars at the rate of bounded forward 63
4 points to new high ground and closed
$5 per pound sterling.
at 1723. Several other issues moved into new high ground,
including Adams Express, Manhattan Electrical Supply,
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Brown Shoe, American Bank Note and Gabriel Snubbers.
The stock market has shown recovery the present week,
TRANSACTIONS AT THE NEW YORE STOCK EXCHANGE
Though there have been occasional reactionary periods durDAILY, WEEKLY AND YEARLY.
ing which the price trend turned downward. Railroad shares
State.
United
Railroad.
Stocks,
as a group moved further forward and new tops were reached
Munietyaland
Mates
Number of
Week Ended July 8.
FOF8411 Bonds.
Bondi.
Bonds.
Shares.
by several prominent market leaders. Industrial stocks
$1,019,000
$634,000
83,796.000
524,700
also participated in the general improvement. The market Saturday
Holiday-In dependence D ay
Monday
5,994.000
2,089,000
1,414.320
388,100
continued its upward movement during the short session on Tuesday
1.029.200
7,675,000 1
3,578,000
1.814,265
Wednesday
Saturday, though the total turnover was the smallest of any Thursday
2,953.000
8.111,000
1,724.125
1,205,950
1,827,000
1,494.300
542.000
6.968,000
day since Oct. 20. General Electric was particularly promi- Friday
$8,917,200 1 86,348,050
8,971.710 332,544,000
Total
nent in the upswing and spurted forward to its highest top
under the present share capitalization. American Can also
Jas. lie July 8.
Wee* Ended July 8
Sales at
New York Stock
moved rapidly upward and closed with a substantial gain.
1926.
1927.
1926
1927.
Exchange.
Chic. & East. Ill. pref. was the feature of the railroad grpup
280,104,745
229.051.607
5,968,716
-No, of shares_
6,971,710
Stocks
and ran upward 3 points to a new high for the year, followBonds.
$160,720,900
$182,085,450
Government bonds___ $6,348,050 $3,415,350
ing unconfirmed rumors of change of control. On Monday State
480,188.400
345,709.550
9,292.700
8,917,200
& foreign bonds_
the New York stock market and all other markets were Railroad dr misc. bonds 32.544,000 26,322,000 1.206,528,050 1,161,801,700
closed in observance of Independence Day. As business was
Total bonds
847,807,2,50 839,030,050 81.848,781,900 81,668,232,150
resumed on Tuesday, after the two-day holiday, the market
DAILY TRANSACTIONS AT THE BOSTON, PHILADELPHIA AND
started with something of a rush. Price movements were
BALTIMORE EXCHANGES
generally upward and advances of from 1 to 6 points were
BaUirnore.
Philadelphia.
Boston.
I
quite numerous. Considerable interest was manifested in
Week Ended
July 8 1927.
Shares 'Bond Sales Share.. 'Bond Sales Share.. IBond Sales.
industrial specialties such as Westinghouse Electric and
2,786
$15,000 Exchange Closed.
$7,350
*5,9931
General Electric, the latter rising more than 4 points to a new Saturday
Monday
H01.1 DAY
11.432
1,5961 $37,000
1,000
19.050
top above 117. Collins & Aikman advanced 2 points into Tuesday
•18,5021
23,000
2,298
Wednesday
28,500
14.854
25.500
•20,993
new high ground and General Railway Signal reached a new Thursday
20,000
1,988
24,600
16,008
42,200
•20.005
8,000
7111
Friday
21.000
6.550
17,000
8,853
top with a 2-point advance to above 124. Colorado Fuel &
3
Railroad stocks
$88,000
6,593
Total
51,630 8108,050
$93,050
74,346
Iron touched its highest since 1902 at 94%.
were the strong issues of the day. Southern Pacific reached Prey, week revised 120,877 $141,830 105,316 8142.500 12,945 $200,900
its highest price for several years at 119% and Atlantic •In addition, sales of rights were: Saturday, 484; Tuesday, 694; Wednesday,
Coast Line scored a net gain of 6 points. Baldwin Locomo- 2,172; Thursday, 503.
tive made little or no progress until after midday, when a
suddenly increased demand carried it above 234.
THE ENGLISH GOLD AND SILVER MARKETS,
The market continued to move forward on Wednesday,
We reprint the following from the weekly circular of
price movements generally consisting of advances ranging Samuel Montagu & Co. of London, written under date of
from 1 to 16 points. Commercial Solvents "B" had one of June 22 1927:
GOLD.
its spectacular upward spurts and closed at 355, with a net
The Bank of England gold reserve against notes amounted to £150,502,475
gain of 15 points. Speculative interest centred around Baldon the previous Wedneswin Locomotive, which bounded forward nearly 4 points to on the 15th Inst.. as compared with £153,486,220
day. In the open market yesterday E603.000 bar gold was available. Of
a new high at 238, and also around Southern Pacific and this amount E513.000 was secured for "unknown destinations," reputed
Colorado Fuel & Iron, both of which sold at the highest to be Hungary and France. The balance was divided as follows: Home
Continentai trade, £55.000, and India. £35.000. The following
prices touched in many years. Railroad shares participated and
movements of gold to and from the Bank of England have been announced:
to a large extent in the general gains. General Electric,
June 18. June 17. June 18. June 20. June 21. June 22.
Western Electric and Houston Oil also reached new high Received
£13.000
.C5.000
Withdrawn
£50,000 £27.000
ground during the early trading. American Can was in
The /68.000 sovereigns withdrawn were destined as follows: Argentine,
strong demand throughout the day and closed with a net £45,000: Holland. £13,000: India. £5.000. and Germany. £5,000. During
gain of more than a point. Oil shares were active and strong; the week under review £95.000 has been withdrawn, increasing the net
efflux this year to E280.000 and since the restoration of an effective gold
Atlantic Refining moving up 3 points, followed by Lago, standard
to £5,584,000, as set out in the dally bulletins at the Bank.
which
subscored
of
Phillips Petroleum and Marland Oil, all
The following were the United Kingdom Imports and exports of gold
registered during the week ended the 15th inst.:
stantial advances.
JULY 9 1927.]
ImportsMiscellaneous
THE CHRONICLE
£1,663
ExportsGermany
France
Switzerland
British India
Straits Settlements
Other countries
£75.442
55,450
35,888
82.030
16.950
10,570
207
ceal the fact for a while. We have been told that the gold bear account in
Shanghai Is about £6,000,000 or the equivalent of 42.000,000 ounces of
silver.
The following were the United Kingdom imports and exports of silver
registered in the week ended the 15th inst.:
ImportsExportsUnited States of America-- E37,974 China
£54,600
Mexico
169.886 British India
166,474
Other countries
16,403 Other countries
18,875
£1,663
£276,330
The following were the United Kingdom imports and exports of gold
registered during the month of May last:
Imports.
Exports.
£224,263
£239.949
Netherlands
£150,000
£14,090
INDIAN CURRENCY RETURNS.
Germany
305,388
8,305
(In laes of rupees.)
May
31.
June 7. June 15.
Austria
67,050 Notes in circulation
17144
17135
16968
France
6,008
16.890 Silver coin and bullion in India
10412
10403
10446
coin
Silver
and
out
bullion
of
India
Switzerland
252,700
Gold Coin and bullion in India
2976
Spain and Canaries
2976
2976
49,500 Gold Coin and bullion out of India
Egypt
81,600 Securities (Indian Government)
55:1;
3546
3546
West Africa
105,737
210
1.358 Securities (British Government)
210
---United States of America
4.275,811
The stock in Shanghai on the 18th inst. consisted of about 73,700.000
Argentina, Uruguay and Paraguay
10,000 ounces in sycee. 70.600,000 dollars and 3,380 silver bars, as compared with
Other countries- in South America
7,794
about 74.700,000 ounces in sycee, 68,400,000 dollars and 3,920 silver bars
Rhodesia
96.566
on the 9th inst.
Transvaal
3,001,124
-Bar Silver,Per Or. Std.Bar Gold,
British India
Quotations During WeekCash.
2 Mos.
350,227
Per Oz. Fine,
16
26716d.
Straits Settlements
26716d.
845. 1134d,
25,370 June
June 17
26Sid.
26;
,id.
848. 1134d.
Other countries
7,594
11.877 June 18
263-4d.
26 Yid.
84s. 11341.
June
20
26
1-168.
26
1-168.
84s. 11;id.
Total
£3,383,128 £5,461,861 June 21268.
4s. lid.
June 22
SILVER.
26 1-16d.
26 I-16d.
84s. 113d.
26.135d.
26.1368.
843. 11.4d.
The market has been inclined to sag during the week,influenced to some Average
The silver quotations to-day for cash and two months' delivery are each
extent by the irregularity of the Indian rains, and New York has not been
Inclined to give that measure of support in London, without which prices 3-168. below those fixed a week ago.
here would long since have given way. Calcutta sends occasional buying
orders, but Bombay has been inactive, doubtless being fed from America.
ENGLISH FINANCIAL MARKETS-PER CABLE.
Though some China bear covering has taken place, the tendency is now to
open fresh bear positions. This is possibly owing to the negotiation of a
The daily closing quotations for securities, &c., at London,
substantial loan by the United States to Japan,the effect of which naturally
will be to improve the prospects of the yen exchange, and therefore weaken as reported by cable, have been as follows the past week:
London,
Sat.,
the value of silver, in view of the unusually large speculative position in
Mon.,
Tues.,
Wed.,
Thwrs.,
Wk.End. July 8 July 2.
China to which we refer below.
July 4.
July 5.
July 6.
July 7.
July 8.
-id.
When relations with the Soviet Government were broken off in London Silver, per es__ 2534d.
243
25746.
257id.
25 13-16d. 257d.
the silver market happened to be in a weak condition. Next day it rallied. Gold per fine os 845.11;id. 848.113-(a. 849.107id. 848.117(d. 848.117ld. 846.l1 3d
At the time it was difficult to see why the event should warrant an improve- Consols, 234%
5434
5434
5434
5434
54%
ment in the price of silver. We have heard, however, by the mail which British, 5%
101
101
101
101
101
left Bombay on June 2 information which seems to give the clue. The British, 434%.
953(
953
953(
9534
953-1
words run thus: "Later, rates in the bazaar advanced on steadier advices French Rentes
On Paris)_fr_
from Shanghai. Renter's reporting from New York that the Chinese specu57.40
57.8.0
57.15
56.75
56.50
lators had bought 75.000,000 (7) ounces of silver owing to war scare rumors French War L'n
(in Paris)-fr. ---affecting England and Russia, and also owing to the reported imminent
76
76.40
75.95
76
75.05
collapse of the North China Government." If only a quarter of that
The price of silver in New York on the same day has been:
amount had been bought, the silver could hardly be required and must Silver in N. Y., per oz.(Ms.):
ere long have become an incubus, even though yen speculation might conForeign
5634
Holiday 563-1
5634
56
56Si
Course of Bank Clearings
Bank clearings this week will show a satisfactory increase
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 ending to-day
(Saturday, July 9), bank exchanges for all the cities of the
United States from which it is possible to obtain weekly
returns will be 7.7% larger than those for the corresponding
week last year. The total stands at ,853,310,836, against
$8,223,852,952 for the same week in 1926. At this centre
there is a gain for the five days of 17.8%. Our comparative
summary for the week is as follows;
Clearings-Returns by Telegraph.
Week Ended July 9.
1927.
1926.
Per
Cent.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
Ban Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
$4,109,000,000
482.206,279
382,000,000
411,000,000
102,379,476
109,600,000
142.811,000
128,827,000
125,352,832
111,117,980
94,141,460
111,153,602
40,837,346
$3,488,000,000
449,855,692
411,000,000
313,000,000
119,915,227
98,500,000
144,300,000
127,375,000
118,179,315
113.275,192
83,013,201
73,197,300
42,232,060
+17.8
+7.2
-7.1
+31.3
-26.6
+112
-1.0
+1.1
+6.1
-1.9
+13.4
+51.9
-3.3
Thirteen cities,5 days
Other cities, 5 days
$6,350,426,975
1,027,332,055
$5,581,842,987
973,273,310
+13.8
+5.6
Total all cities, 5 days
All cities, 1 day
$7,377,759,030
1,475,551,806
36,555,116,297
1,668,736,655
+12.5
-11.6
$8,853,310,836
$8.223.852.052
4-7.7
Tntn1 101 pitle.9 Mr so.*
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 in all cases had to be estimated.
In the elaborate detailed statement, however, which we
present further below, we are able to give final and complete
results for the week previous-the week ended July 2. For
that week there is an increase of 2:8%, the 1927 aggregate
of clearings being $11,880,829,986, and the 1926 aggregate
$11,555,492,407. Outside of New York City, there is a
decrease of 7.2%, the bank exchanges at this centre having
increased 10.0%. We group the cities now according to the
Federal Reserve districts in which they are located, and from
that it appears that in the Boston Reserve District there is
a loss of 6.5% and in the Philadelphia Reserve District of
11.1%, but in the New York Reserve District (including
this city) there is a gain of 9.7%. The Cleveland Reserve
District shows an increase of 1.8%, but in the Richmond
Reserve District the totals are smaller by 32.3% and in
the Atlanta Reserve District by 11.0%,the latter due largely
to the falling off at the Florida points, Miami showing a
decreae of 71.2% and Jacksonville of 31.6%. The Chicago
Reserve District has a decrease of 5.4%, the St. Louis
Reserve District of 5.7% and the Minneapolis Reserve
District of 14.9%. In the Kansas City Reserve District
a decrease of 3.1% appears,in the Dallas Reserve District of
11.3%, and the San Francisco Reserve District of 1.8%.
In the following we furnish a summary by Federal Reserve
districts:
Week Ended July 2 1927.
1927.
Federal Reserve Diets.
$
1st Boston __ _ _12 Cities
653,124.357
2nd New York-11 "
7,540,482,594
3rd PhUade1phial0 "
611,973,374
4th Cleveland.- 8 "
449,904,690
5th Richmond _ 6 "
177,274,702
6th Atlanta__..13 "
189,500,377
7th Chicago -__20 "
1,046,283,044
8th St.Louis... 8 "
217,535,136
9th Minneapolis 7 "
108,731,821
10th Kansas City12 "
255,617,884
11th Dallas
5 "
67,018,178
12th San Fran..17 "
563,381,839
Total
129 cities 11,880.827,986
Outside N.Y. City
4,497,890.999
Canada
31 titles
1926.
$
698,252,424
6,872,730,228
688,554,528
442,013,832
263,458,932
212,955,181
1,105,693,703
230,654,688
127,853,169
263,869,110
75,537,702
573,918,910
Inc.or
Dec.
1925.
1924.
$
%
$
-8.5
442,960,213
437,839,528
+9.7 5,752,188,571 5,094.00605
-11.1
550,483,085
513,292.065
+1.8
360,245.528
337,420,490
-32.3
207,996,669
167,103,334
-11.0
153,967,047
202,702,000
-5.4
987,363,499
927,417,681
-5.7
194,113,563
188,835.226
-15.0
112,510,735
109,383,709
-3.1
535,550,977
210.636,734
-11.3
54,961,504
63,078,046
-1.8
452,224,484
407,025,158
11,555,492,407 +2.8 9,543,402,830 8,610,065,484
4,845,388,083 -7.2 3,931,348,
3,638,523.731
355.396.059
265.966.559 +33.6
273.849.515
341.362.647
We also furnish to-day a summary by Federal Reserve
districts of the clearings for the month of June. For that
month there is an increase for the whole country of 8.2%,
the 1927 aggregate of the clearings being $47,694,486,950
and the 1926 aggregate $44,099,611$87. While the present
year's total does not establish a new high monthly record it
is the largest total ever reached in the month of June. The
gain, however, is due entirely to the increase at New York
City. Outside of New York City there is a decrease for the
month of 0.4%, the bank exchanges at this centre having
registered a gain of 15.2%. The Boston Reserve District
shows an increae of 6.4%, the New York Reserve District
(including this city) of 14.S%, and the Cleveland Reserve
208
[VOL. 125.
THE CHRONICLE
District of 4.6%. In the Philadelphia Reserve District
The course of bank clearings at leading cities of the country
there is a falling off of 3.0%, in the Richmond Reserve for the month of June and since Jan. 1 in each of the last
District of 10.1% and in the Atlanta Reserve District of four years is shown in the subjoined statement:
12.9%, the latter following from the loss at the Florida
BANK CLEARINGS AT LEADING CITIES.
Jan. 1 to June 30
June
points, Miami having 63.2% decrease, Tampa 39.2% and
1927. 1926. 1925. 1924. 1927.
1926.
1925.
1924.
(000.0003
Jacksonville 37.5%. The total in the St. Louis Reserve
omitted.)
3
$
District show a diminution of 24% and in the Minneapolis New York
27,876 24.195 24,018 19.959 156.433 150,192 141,841 119,465
3,194 3,087 3,165 2,617 18,100 17,977 17,743 15,543
Reserve District of 5.5%, but the Chicago Reserve District Chicago
Boston
2,304 2,139 1,804 1,570 13.132 12,411 10,909 10,339
has an increase of 2.1%. In the Kansas City Reserve Dis- Philadelphia
2,424 2,500 2,576 2.143 14.143 14,831 14.283 12,520
trict there is a decrease of 1.1%, in the Dallas Reserve St. Louis
629
655
654
582
3,704
3,897
3,734
3,562
834
780
4,363
748
650
4.787
4.524
4,029
District of 3.7%, and in the San Francisco Reserve District Pittsburgh
San Francisco
811
816
757
4,883
4,468
658
4,836
4.089
of 1.4%.
Cincinnati
328
335
320
259
1,911
1,946
1,818
1,663
June
1927.
Federal Reserve Diets.
181 Boston ____14 cities
2nd New York.14 "
3rd Philadelphial4 "
4th Cleveland..15 "
5th Richmond _10 "
6th Atlanta___ _18 "
7th Chicago _..29 "
9th St. Louts_ _ _10 "
9th Minneapolls13 "
10th Kansas City16 "
11th Dallas
12 "
12th San Fran_ _28 "
June
1925.
Ine.or
Dec.
June
1926.
June
1924.
$S
$
$
'
6.4 2,059,823,314 1,788,969,314
2,561,559,483 2,407,603,610 T
28,608,491,390 24,922,491,582 +14.8 24,666,980,349 22,510,071,564
2,603,448,463 2,684,282,550 -3.0 2,805,686,117 2,338,964,168
1,927,647,521 1,842,232,528 +4.6 1,780.886,675 1.511,240.581
979,889.247 -10.1
940,012,676
881,341,529
785,816,681
992,443,604
716,743,492
843,889,232
968,830,034 -12.9
4,641,192,398 4,646.266,198 +2.1 4,524,051,982 3,764,998,540
980,873,716
857,719,768
979,978,692 1,002,847.521 -2.4
475,237,183
591,472,100
642,602.781
574,390,619 -5.5
1,230,532,919 1,243,960.831 -1.1 1,199,320,455 1,006,710.421
460,376.507
387,269,326
485,502,461
504,030,534 -3.7
2,388,300,081 2,422,796,633 -1.4 2,230,798,328 1,916,170,340
Total
193 cities 47,694,486,950 44,099,611,887 +8.2 43,232,725,823 36,059,911,877
19,818,739,614 19,904,622,301 -0.4 19,213,882,108 16,101,362,823
Outside N. Y. City
_
Canada
90 oltlaa
1 MA 791 IAA
14R90.4A Mg -1-195
1237621321
12575911Q1
We append another table showing the clearings by Federal
Reserve districts for the six months back to 1924:
Total
Other cities
Sir Months.
1927.
1552.07
Dec.
1926.
$
Federal Reserve Diets.
150 Boston ____14 cities 14,644,469,265 13,946,882,773
2nd New York.14 " 160,478.548.915 154,157,760,734
15,233,975,379 15,904,961,892
3rd Philadelphial4
11,034,498,648 10,602,998,827
4th Cleveland_ _15
6,132,003,491 6,484,588,217
5th Richmond _10
5,435,657,966 6,721,034,156
6th Atlanta___ _18
26,387,060,203 26,276,343,036
7th Chicago ___29
5,792,610,927 6,018,732,967
8th St. Louis. _ _ 10
2,922,476,707 3,225,665.310
9th Minneapolis13
7,206,132,002 7,039,835,075
10th Kansas City16
3,191,922,902 3,154,906,879
Ilth Dallas
12
14,450,129,833 14,236,193.007
12th San Fran_ _28
1925.
29 cities
9,198,218,879
12,380,808,669 11,672,864,378
+4.1 145,397,059,417 122,824,823,861
-4.2 15,592,238,489 13,742,974,139
+4.1 10,178,624,600 9,404,489,456
-6.4 5,208,115,877 4,858,263.707
-19.1 6,040,170,867 5,057,327,894
+0.4 25,421,363,383 22,694,925,780
-3.8 5,749,318,450 5,386,934,067
-9.3 3,322,682,059 2,850,146,662
+2.4 6,965,401,675 6,265,794,002
+1.1 3,047,521,169 2.583,701,373
+1.5 12,854,103,002 12,151,252,823
8,318,366,239 +me
7,562,982,164
401
490
432
192
279
128
596
153
560
47
156
180
123
80
124
211
65
173
52
66
2,808
3,609
3,165
1.438
1,722
928
4.301
1,120
4,783
351
1,022
1.333
738
599
757
1,214
.543
1,147
390
429
3.014
3.369
2.996
1,505
1,960
906
4,356
1,092
4,410
346
1,061
1.360
799
579
793
1.311
591
1,166
428
434
2,743
3,345
2,897
1,485
2.054
877
3,981
1,020
3,878
349
1,088
1,301
785
424
815
1.331
543
1,039
363
402
2,495
3.037
2,691
1,441
1,642
795
3,658
949
3,713
306
954
1,131
806
492
763
1,328
496
1,034
328
377
43,977 40.176 39,428 32,946 249,443 243,137 229,869 199,646
3,717 3,924 3,805 3,114 22,466 23,632 22,288 19,910
Total all
47,694 44,100 42,233 36,060 271,909 266,769 252,157 219,556
Outside New York_19.819 19.905 19.214 16.101 115.476 116,578 110,316 100,091
1924.
Total
193 cities 271,909,486,248 266,769,402,873 +1.9 252,157,497,647 219,556,498,130
115,476,272,189 116,577,878,203 -0.9 110,315,570,938 100,091,017,738
Outside N. Y. City
Canada
487
Baltimore526
564
Kansas City
612
603
575
Cleveland
562
527
528
New Orleans
225
229
223
Minneapolis
324
345
360
Louisville
• 157
157
155
Detroit
737
779
779
Milwaukee
188
176
188
Los Angeles
675
773
765
Providence
59
58
.57
Omaha
188
176
177
Buffalo
239
243
234
St. Paul
137
127
140
Indianapolis
64
100
107
Denver
137
136
140
Richmond
202
215
209
Memphis
90
89
78
Seattle
201
199
185
53
Flartford
66
75
Salt Lake City
75
76
71.
Our usual monthly detailed statement of transactions on
the New York Stock Exchange is appended. The results for
June and the six months of 1927 and 1926 are given below:
Month of June.
Six Months.
Description.
1927.
1927.
1926.
1926.
47,778,544 38,254,575
271,807,154
Stock, number of shares_
218,907,999
Railroad & misc. bonds.. 2164,668,000 $170,096,500 21,165,494,050 $1,122,476,500
449,346.200
332,372,350
State, foreign, Jrc., bonds 57,015,300 66,363.500
34,253,250 27,156,000
175,405,700
156,165,800
U. S. Govt. bonds
$255,936,550 $263,616.000 $1,790,245,950 $1,611,014,650
Total
7,785,907,442
The volume of transactions in share properties on the
The following compilation covers the clearings by months New York Stock Exchange for the month of June in 1924 to
since Jan. 1 in 1927 and 1926:
1927 is indicated in the following:
MONTHLY CLEARINGS.
1927.
Clearings. Total AU.
Clearings Outside New York,
1927.
1926.
%
1927.
1926.
%
$
$
5
$
Jan___ 45,209,424,033 47,611.459,198 -5.1 19.61,7.510,562 20,510,360.932 - 43
Feb... 40,361,508,749 38,758,757,643 +4.1 17,303.38 i.426 17.305,400,168 -0.03
Mar.. 48,948.371,418 48,460,993,827 +1.0 20,219,526,569 20,369,120,885 -0.7
1st cm_ 134519 304 200 134831 210668 -0.2 57.170,418,557 58,184,881,985 -1.8
Apr __ 45,718,620.044 45,468,511,618 +0.5 19.253.159,393 19,504,450,850 -1.3
May__ 43.977.075,054 42,370,068,700 +3.8 19,233,954,625 18,983.923,067 +1.3
June__ 47,694,486,950 44,099,611.887 +8.2 19,818,739,614 19,904,622,301 -0.4
2d qu. 137390,182,048 131938,192,205 +4.1 58,305.853,632 58,392,996,218 -0.1
3 0808. 271909.486.248 266769402.873 +1.9 115476,232,189 116577,878,203 -0.9
1926.
1925.
1924.
No. Shares. No. Shares. No. Shares. No. Shares.
Yearn.
34,275.410
44,162,496
49.211,663
Month of January
February
March
First quarter
Month of April
May
June
41,570.543
32,794,456
38,294,393
26.857,380
20,721.562
18,315,911
87,649,569 126.985,565 112,659,392
65,894,859
30.326.714
23,341,144
38,254,576
18,116,828
13,513,967
17,003.140
49,781,211
46,597,830
47.778.544
38,987.885
35.725,989
52,271,691
24,844,207
36,647.760
30,750,768
We now add our detailed statement showing the figures
for each city separately for June and since Jan. 1 for two
years and for the week ending July 2 for four years:
CLEARINGS FOR JUNE, SINCE JANUARY 1, AND FOR WEEK ENDING JULY 2.
Since Jan. 1.
Month of June.
Clearings at1927.
1926.
2
•
$
First Federal Rese rve District- Boston3,335,348
3,714,842
Maine-Bangor
17,933,818
15,914,338
I Portland
2,304,088,921 2,139,000,000
Ma98.-Boston
8,619,754
8,452,443
Fall River
4,314,642
3,873,588
Holyoke
4,999,956
5,763,231
Lowell
a
a
Lynn
6,001,849
5,049,029
New Bedford
26,782,343
23,559,837
Springfield
17,077,551
15.884,712
Worcester
75,107,115
Conn.-Hartford
65,997,854
31,203,602
New Haven
34,369,303
Waterbury
12,956,200
13,471,700
56,709,100
R. 1.-Providence
58,003,100
3,562,332
N.H.-Manchester..
3,416,585
Total(14 cities).- 2,561,559,483 2,407,603,610
Inc. or
Dec.
1927.
%
$
Week Ended July 2.
1926.
Inc. or
Dec.
1927.
1926.
Inc. or
Dec.
1925.
2
%
2
2
%
5
•
+11.4
18,738,084 +12.5
21,078,315
-11.3
94,240,878
91,915,396
+2.5
+7.7 13,131,830,430 12,410,537,997 +5.8
-1.9
52,154,851 -2.7
50,771,568
-10.2
22,766,734
24.389,736 -6.6
32,013,297
27,266,677 +17.4
+15.3
a
a
a
a
31,573,180
34,384,819 -8.2
-15.9
150,756,395 -5.1
-12.1
143,014,348
94,589,220 -0.8
-7.0
93,838,610
427,628,452 -8.7
-12.1
390,445,189
183,699,571
+7.2
+10.1
196,892.431
65,515,100
63,178,900
+3.7
+4.5
346,471,800 +1.4
+2.3
351,289,500
20,170,875 -4.9
-4.1
19.199,685
+6.4 14,644,469,265 13,945,882,773
+5.0
636,000
4,259,300
591,000,000
1,799,955
a
1,282,092
a
1,104,622
6,072,957
4,411.652
15,247,713
8,689,337
17,595,000
1,025,829
653,124,357
1924.
$
-28.3
-15.4
-6.2
-16.2
a
+20.0
a
-14.5
+8.0
-11.4
-28.9
-2.5
711,455
3,318,481
384,000.000
1,909,479
a
1,084,428
a
1,195,394
6,783,733
4,275,370
16,296,512
7,810,461
889,447
3,783,353
382,000,000
1.847,646
a
1,273.307
a
983,724
5,672.013
4,250.000
14,656,875
8,493,461.
15,548,300 +13.2
1,304,709 -21.4
15,574,900
779,849
13,980,700
946,106
-6.5
442,960,213
437,839,526
886.870
5.036,003
630,000,000
2,146,643
a
1,068,622
a
1.291,939
5,621,718
4,978,235
21,454,178
8,915,207
698,252,424
Second Federal Re serve District -New York166,270.522 -0.1
8,640,080 -12.3
186,249,254
6,827,954
7,210,179
7,539,789
N. Y.-Albany
27,471,879 -6.7
25,643,585
1,467,867 +7.1
29,707,500 +7.2
1,513,862
1,341,700
31,836,318
Binghamton
1,572,317
4,892,400 +10.9
5,425,460
66,148,760 -7.4
47.023.898
56,403,609
Buffalo
61,250,928
239,010,969
243,402,486 -1.8 1,333,007,478 1,360,149,677 -2.0
26.605,303 +7.0
975,316
28,454,919
1,323,690
Elmira
+6.0
1.533,890 , 1,581,962 -3.0
5,049,852
5,351,316
1,328,565 -0.2
1,328,652
39,142,490 -5.4
d 1,326,069
1,376,413
37,033,428
Jamestown
6,356,417
6,549,889 -3.0
New York
27,875,747,336 24,194,989,584 +15.2 156,433,214,059 150,191,524,670 +4.2 7,382,936,987 ,710,104,344 +10.0 5.612,054,742 4,971,561,753
26,480,898 +12.7
29,859,013
Niagara Falls
4,777,721 +21.0
5,779,738
16,993,475
344,647,862 +5.3
19,500,469 -9.4
17,767,347
362,776,267
Rochester
+9.0
69,560,318
17,664,008
63.822,631
6.787,422
153,622,209 +8.0
10,949,516 -8.5
7,898,426
165,919,626
Syracuse
32,441,332
27,328,256 +18.7
10,029,757
3,449,558 +9.5
4,176,407
93,650,649 +4.7
4,114,233
98,066,336
Conn.-Stamford..._
03,778,691
20,965,611
20.989,071 -0.1
695,171
21,677,194 -14.2
997,022 +51.3
1,402,208
22,942,369
4.488,053
1,508,897
N. J,-Montclair..
4,762,640 -5.8
660,720,733 +3.8
Newark
685,940,207
122,075,461
124,047,902 -1.6
35,983,516
+3.8
48,562.085 +5.7
41,506,087
Northern N. J
188,084,074
51,341.261
186,964,839 +0.6 1,042,538,552 1,004,838.524
33,149,379 +22.9
Oranges
40,711,099
+6.5
7,561,720
7,097,717
rred,31 /LI rItinal
It 009423 500 9,1 001 An. 001
_1_1.4 a 100 4179 549091 11.4 117 700 734
-1.4 1 7 .411 ‘1.89 00.00 579 730 228
-4-9.7 5.712.1549 971 5.094.086.481
209
THE CHRONICLE
JULY 9 1927.]
CLEARINGS-(Continued)
1927.
1926.
Week Ended July 2.
Since Jan. 1.
Month of June.
Clearings atInc. or
Dec.
1927.
Inc. or
Dec.
Fourth Federal Re serve District -Cleveland
Ohio-Akron
30,815,000
29,146,000
Canton
18,232,538
18,090,546
Cincinnati
327,908,578
334,735,416
Cleveland
561,947,280
527,424,773
Columbus
76,184,900
74.287,100
Dayton
a
a
Hamilton
3,739,481
3,990,512
a
Lima
a
2,343,722
Lorain
1,920,354
Mansfield
9,221,764
9,503,980
a
a
Springfield
Toledo
a
a
25,442,253
24,557,957
Youngstown
3,671,072
Pa.-Beaver County _
3,368,433
a
Erie
a
1,345.243
1,883,664
Franklin
6,138,580
7.773,958
Greensburg
833,997,983
780,141,502
Pittsburgh
7.060,764
7.033,240
Ky.-Lexington
20,042,154
17,931.302
W. Va.-Wheeling_
Total(15 cities)
'
3.
a
-28
-21.0
+8.9
+0.4
+11.8
Total(10 cities)
881,341,529
-18.1
a
-35.5
-3.5
a
-4.1
a
-7.8
+29.6
-13.7
-0.9
+12.3
979,889,247 -10.1
Sixth Federal Rese rve District- AtlantaTenn.-Chattanooga _
37,285,800
32.498,000
Knoxville
•15,500.000
15,374,225
Nashville
95,638,767
93,168,343
Ga.-Atlanta
198,249,612
238,806,023
Augusta
7,659,130
7,492,642
Columbus
4,176,784
3,998,793
Macon
7,955,433
7,783,859
Savannah
a
a
Fla.-Jacksonville_ _
79,823,047
127,729,018
Miami
18,185.000
49.431,496
Tampa
18,709,869
30,775,722
Ala.-13Irrningham_ _ _
102,101,880
98,342,504
8,118,911
Mobile
8.932,347
5,675,692
5.744,842
Montgomery
7,312,600
8,503,479
Miss.-Hattiesburg _ _
6,395,151
6,358.110
Jackson
3,475,940
Meridian
3,634,589
2,016,024
1,526,978
Vicksburg
La.-Now Orleans_ _ _
225,449.943
228,887.1.31
Total(18 cities).---
843,889.232
_
4,641,192,398 4,546,256,198
Eighth Federal Re serve District -St. LouisInd.-Evansville
26.836,000
29,420,231
New Albany
958,302
936,119
Missouri-St. Louis_ _
654,756,505
629,208,527
Springfleld
a
a
156,606.720
Kentucky-Louisville.
156,790,423
Owensboro
1,399,178
1,149.339
Paducah
8,489,225
8,768.659
Tenn.-Memphts _
89,272,737
89,787,857
54,426,085
Arkansas-Little Rock
55.700.271
1,805,127
Illinois-Jacksonville_
1.622,775
Quincy
8,297,644
6,594,491
Total (10 cities)
979.978,692 1,002.847,521
-14.0
+0.9
+4.8
+32.0
968,830,034 -12.9
Seventh Federal R eserve Distric t-Chicallo
Mich.-Adrian
1,150,569
1,151,288
Ann Arbor
5,194,224
5,153,330
Detroit
778,933,730
779.185,076
Flint
13.876.251
12,000,448
Grand Rapids
35,667,165
36,060,900
Jackson
8,794,672
7,307,284
Lansing
12,331,599
11,763,737
13,464,513
Ind.-Ft. Wayne_ _ _ _
14,687,720
26.671,492
27,194.183
Gary
99,755,000
Indianapolis
107,377,000
14,711,850
South Bend
14,947,777
24,505,024
23,771,315
Terre Haute
15,725,538
15,784,521
Wis.-Madison
188,419,484
188,138,506
Milwaukee
4,326,381
4,480,933
Oshkosh
12,667,601
11,694,689
Iowa-Cedar Rapids_
42,086,455
42,566,790
Davenport
47.811,785
44.400,983
Des Moines
2,105,411
2,262,596
Iowa City
f
Mason City
I
30,523.186
Sioux City
26,503,950
5,765,947
Waterloo
5,705,757
Illinois-Aurora
7,970,949
7,672,883
7,728,908
Bloomington
6,238,116
Chicago
3,193,661,173 3,086,812,189
a
Danville
a
Decatur
6.215,804
5,940,155
Peoria
23.677,862
21,167,977
Rockford
14,989,036
15,037,000
Springfield
12,535,277
11,114,607
Total(29 cities)
+14.7
+0.8
+2.7
-16.0
+2.2
+4.5
+2.2
a
-37.5
-83.2
-39.2
+3.8
+0.8
-0.1
+15.6
-1.1
+19.4
+4.8
-8.3
-1.9
-17.1
-1.6
+3.1
-0.4
+0.1
-3.4
+8.3
-1.1
+7.7
-6.9
r
2,275,847
577,000,000
5,091,100
6,539,638
d3,597,386
1,798,047
1,513,029
3,519,064
1,621,302
2,412,486
-5.7
2,794,330
2,591.739
651.000,000
5,694,389
7.483,236
3,634.605
2.256.270
-11.4
-10.6
-12.2
-1.0
-20.3
515,000,000
4,126,808
7,297,722
4,442,765
1,932,709
479,000,000
3,956,149
7.494,428
4.737,992
1,732.778
7,571,691
a
7,736.739 -20.1
a
7,604.014
a
7,125.574
-4.2
811,973,374
688.554,528 -11.1
550,483,085
513.292,055
157,384,000
+2.2
104,452,793 +2.0
1,945,838,619 -1.8
2,995,854,500 +5.6
427,358,000 +5.3
a
a
24,708,730 -1.9
a
a
11,605,513 -1.2
53,220,329 -2.4
a
a
a
a
134,736,209 +7.9
18,462,040 +1.6
a
a
9,952,212 -18.1
36,673,445 -1.5
4,523,518,037 +5.9
51,868,908 -7.1
107,565,492 +2.0
d6,517,000
3,695,039
72,279,225
134,244.902
18,838.400
a
6.107.000 +6.7
3,802,428 -2.8
81.315,426 -11.1
134,651.819 -0.1
19,389,800 -2.8
a
a
5,587,000
3.712.808
64.002,471
114,030,868
13,932,810
a
8,773.000
3,194,076
60.274.676
96,446.946
14,271.700
a
2.100,864
1,900,275
a
a
5,648,617
+4.1
,523,957
61a
50.450,660
2,808.079,717
12,315,731
21,315,067
714,439,659
38,499,384 --9.3
a
2137989,282 -31.9
1.310,826,000 -7.4
a
71a
,056,747 -2.4
a
a
65,461,497
41,913,481 +20.4
3,014,192.182 -6.8
12,617,577 -2.4
20,345,617 +4.8
695,686,450 +2.7
5,132,003,491
5,484,588,217
208.030,050
85,721.833
573,952,123
1,282,715,581
51,605,938
27,584,800
50,769,701
a
564,700,947
168,702,415
136.417,696
625.852,746
53.643,289
39,623,725
47,712,484
43,670,357
26,061,445
10,655,806
1.438,237,030
201,763,929
84,776,458
569,399,249
1.737,960,777
51,688,621
27,139,080
43,770,034
a
896,788,324
441,472,095
255.456,969
678,812,349
54,660.698
45,322,375
49,410.808
43.262,256
23,814,413
10,743.766
1,505,391,955
34,921,687
a
145,771,299
1,213,839,272
a
69,346,442
1,751.890
4,952.397
1,632,516
1,404.442
4.885.597
1,594,698
+4.6 11,034,498,648 10,602.498,827
1,927,647.521 1,842,232,528
Fifth Federal Rese rye District- Richmond5,622,818
6,863,844
W. Va.-Huntington _
a
Va.-Newport News_
a
23,725,533
36,812,065
Norfolk
Richmond
201,192,000
209,023,000
a
a
N. C.-Asheville__ _ _
Raleigh
12,569,145
13,103,612
a
Wilmington
a
9,424,491
10,222,830
S. C.-Charleston
8,224,356
6,344,000
Columbia
486,981.810
564,032,119
Md.-Baltimore
2,063,995
Frederick
2,080,862
3,421,045
Hagerstown
3,045,843
127,516,336
D. C.-Washington_ _
128,361,072
160,878,000
106.583,183
1,911,079.239
3,164,543,776
450,177,700
a
24,239,457
a
11,470.423
51,963,191
a
a
145,341,785
18,763,200
a
8.151,780
36,132,938
4.787.486,514
48.010.201
109,677,261
1,687,545
4,824,282
1,587,838
Inc. or
Dec.
--3.7
--2.6
--2.7
-3.0 15,233,975,379 15,904.961,892
+5.8
+0.9
-2.0
+6.5
+2.6
a
-6.3
a
-18.1
+3.0
a
1926.
1924.
$
$
%
Third Federal Res erve District -Philadelph la40,299,232 +6.4
7,447,595 +2.1
4.2.862,838
7,607,206
Pa.-Altoona
109,965.198
+4.1
17,515,111
+4.8
114,596.246
18,356,653
Bethlehem
35.702,675 +2.8
6,302,393 +0.7
36,716,687
6,347,583
Chester
123,638,564 -1.7
23.287,982 -12.0
121,507,873
20,498,267
Harrisburg
58.993,581
63.732,778 -7.4
9.724,694
9,639,713 +0.9
Lancaster
16,727,622 -0.1
2,980,746 -0.4
16,727,296
2,861,505
Lebanon
22,823,774
4,516,911
4,536,303 -0.4
+3.6
23.665,746
Norristown
2,424,000,000 2,500,000,000 -3.0 14,143,000,000 14,831,000,000
Philadelphia
106,744,732 +3.3
110,302,752
48,455,114
18,837,223 -2.0
Reading
158,274,489 +3.2
26,373,713
26,907,904 -2.0
163.289,278
Scranton
92,344,531 + 14.5
18,101,948
15,433,284 +17.3
105,717,986
Wilkes-Barre
48,441.697 -1.9
8.292,278 -5.5
47,539,281
York
7,832,666
12.786,281
15,139,449 -15.6
89,906,355 -17.3
N.J.-Camden
74.368,776
165,360,245 +5.6
Trenton
25,990,922
27,962,569 -7.1
174,687,039
a
a
Del.-Wilmington _
a
a
a
a
Total(14 cities)--- - 2,603,448,463 2,684,282,550
1927.
1925.
1926.
a
e1,863,073
a
a
5,980,194
a
a
a
1,969,283 -5.4
a
a
a
a
4,912,030 +21.7
a
a
5,8177,976
a
a
206,486,857
189,866,246
+8.8
151,000,741
146,911,190
449.904,690
442.013,832
+1.8
360.245.528
337,420.4E10
1,226,059
1,655,307 -25.9
1,410,854
1,919,368
d5,157,956
46.119,000
8,303,918 -37.9
53,676,000 -14.1
9,182.012
44,567,000
7,664,228
45,510,000
d1,718,202
*2,200,000 -36.4
2,072.435
2,878.283
e94,401,412
166,543,833 -43.3
121.388,368
86,181.590
-7.8
29,376.000
22.949,885
177,274,702
263,458,932 -32.3
207,996,669
167,103,334
+3.1
+1.1
+0.8
-26.2
+1.0
+1.6
+16.0
a
-3.7
-61.8
-46.6
-6.3
-1.9
-12.6
-3.4
+0.9
+9.4
-0.8
-4.5
d7.017,753
*4,000.000
20,979,290
45,673,250
1,860,936
6,380,055 +10.0
4,172,250
21,360.096 -1.8
51,593,159 -11.5
1,727,848 +7.7
6.037,225
*3,400.000
18,685.654
49,981,118
1,363,364
5,539,361
3.348,815
16.404,633
39,106,000
1,957,280
a
17,651,343
3.408,000
1,798,404 +8.8
a
a
25,794.875 -31.6
11,843.609 -71.2
1,304,699
20,6100,973
17,364,882
1.304,970
a
11,715,756
3,338,415
24,362,559
2.058,655
25,074,111 --2.8
2.347,615 --12.3
22,221.664
1,626,391
21.408,180
1.747,590
+2.5
1.422,674
1,704,000
472,453
58,595.858
341.677 +38.3
59,094,482
275,795
58,417,563
377,670
47,972,657
5,435,657,966
6,721,034,156 -19.1
189,500,377
212,955.181 -11.0
202,702,000
153,967.047
6,553,550
30,411,070
4,301,176,847
85,979,670
208.404,763
49,087,105
66,217,019
77,105,903
156,090,054
598.519,410
81,088,450
157.346,624
96,479,301
1,120,118,098
25,268.444
72,921,500
264,057,741
262,549,732
12,674,669
6,407,174
+2.3
28,746,250 +5.8
4,355,829,579 -1.3
71,581,074 +20.0
219,727,160 -5.2
45.379.055 +8.2
71,495,753 -3.1
73,305,942 +5.2
154,471.062
+1.0
578.899.000 +3.4
79,145.544 +2.5
152,455,462
+3.2
98,760.321 -2.3
1,091,768,214
+2.6
23,697,489 +6.6
69.064,712 +5.6
256,377,918 +3.0
277,498,155 -5.4
12,309,666
+3.0
1.333.393
181,431,598
234,416
1,542.586
187,058,167
-a;
-3.0
161,376
1,293,732
148,061,277
216,738
1,183,431
142,193.578
7,877,750
8,676,812
-9.2
7,108,794
6,704,186
3,157,190
3.628,538
3,586,000 -12.0
3,438,328 +5.5
2,985,962
2,956,294
2.685.760
3,189,153
24,891,000
3,363,900
6,339,086
29,109,000 --14.5
4.441,233 --14.3
6.800,797 --6.8
18,633,000
4,600,000
7,471,429
21,086,000
1,958.178
6,304,237
42,448,964
44,821,561
37,821,718
34,598,680
2,848,838
3,015,242
2,552.595
2,629,102
10,578,481
10,910,444
-3.0
10.337,853
10,703,480
8,691,224 -11.7
1,426,638 -6.5
6,311,029
1.250,302
5,872,851
1,593,640
1, 157,553
6,034.655
3,749,058
3,371,366
+6.2
-5.3
a
+1.3
-12.8
+5.3
-21.0
1.508,778
722,557,749
a
1,426,614
4,766,403
2,970,770
2.807,826
1,352,900
674,025,790
a
1,328,357
4,516,980
5,016,023
2.260,637
+0.4 1,046,283,044 1,105,693,703
-5.4
987.383.499
927.417.681
r
28,652,073
1,463,000
31,079,874
1.427,000
r
-13.2
166,149,228
181,815,145 -8.8
-1.0
33,943,270
31,774,159 +6.8
-3.7
43,293,738 -0.1
43,277.287
-19.3
44,064,242 -5.6
41,617,259
+3.5 18,100,494,374 17,977,464,035 +18.5
a
a
a
a
--4.4
35,208,608 +0.7
35,451.982
-10.6
134,789,103 -4.6
128,617,335
85,388,257 +8.6
92,742,541
-11.3
76,126,219 -4.5
72,716,977
+2.1 26,387,060.203 26,278,843,036
-1-9.6
-2.3
-3.9
a
+0.1
-17.8
+3.3
+0.6
+2.3
-10.1
-20.5
155,207,350
5.093,561
3,703,530,367
a
927,990.837
10.194,928
56,115,225
543.215,703
340,570,622
10,136,966
40,555,368
141,511,807
4,764,558
3.896,686,171
a
906,295,550
10,925,686
56.321,985
591,356,661
355,352,594
11,235,711
44.282,488
-2.4
5,792,610,927
6,018,732,967
5,906,036
1,333,521
1,805,800
736,128,471
a
1,374,962
5.260,793
3,948,070
2,828,653
8,712,343
1,700,532
777,728,693
6,398,596 -10.7
5,722,974
4.979.968
143,300.000
154,100,000
-7.0
130,700,000
129,200,000
+2.4
--6.7
--(L4
--8.1
--3.8
--9.8
--8.4
37.416.286
277.596
35,239,970
373,950
+6.2
33,003,359
341,494
29,433,097
490,651
17,965.985
11,033,426
488,514
1,342,976
19,831,686 --9.4
12,331,886 --10.5
441,881 +10.1
1.936,719 --30.3
14,149,182
8.472.533
391,756
1.332,285
14,067.077
8,830,614
341.044
1,492.776
-3.8
217,535,126
194,113,563
188,835,225
+9.7
+6.9
-5.0
230,654,688
-5.7
•
210
THE CHRONICLE
[VOL. 125.
CLEARINGS-(Concluded).
•
Since Jan. 1.
Month of June.
•
Week Ended July 2.
Clearings at1927.
Inc. or
Dec.
1926.
$
$
%
1927,
1926.
Inc. or
Dec.
1925.
$
$
%
$
1924.
$
•
177,189,214
1,721,712,493
15,160,995
737.780,406
47,602,261
33,238,000
7,416,643
28,470,991
43,180,150
14,753,717
21,405,287
71,093,390
3,473,160
186.865,761
1,960,105,572
12,742,508
799,071,909
45,618,764
32,624,000
7,079,762
37,178,572
38,151,267
13,940,512
18,761,265
70,318,724
3,206,694
-5.2
-10.1
+19.0
-7.7
+4.4
+1.9
+7.6
-23.4
+13.2
+5.8
+14.1
+1.1
+8.3
d7,072,258
d66,867,000
6,764,922 +4.5
81,907,556 -18.4
7.308,076
73,247,518
7,873,535
68,410,447
28,572.852
1,927,026
32,520,568 -12.1
1.918,860 +0.4
27,065,911
1,381,000
27,457,950
1,421,274
1,039,142
1,478,319 -29.7
1,066,453
1,069,177
490,543
556,842 -11.9
442,746
418,828
+2.1
2,099,031
2,732,498
-5.5
2,922,476,707
3.225,665,310
-9.3
108,731,821
127.853,169 -14.9
112,610,735
109,383,709
Tenth Federal Res erve District -Kansas Clt 3,Neb.-Fremont
+5.9
1.776,377
1,880,726
Hastings
2,030,723 -12.3
1,780,595
Lincoln
22,036,180 -0.5
21,931,522
Omaha
176,711,414 -0.2
176,326,198
Ran -Kansas City _ _
20,800,225 -49.7
10,458,311
Lawrence
a
a
a
Pittsburg
a
Topeka
a8
13,985,515
+4.5
13,383,006
Wichita
37,045,909
40.916,616 -9.5
Missouri-Joplin __ _.
7.221,563 -16.7
0,012,206
+1.5
Kansas City
66.302,659
603,163,690
33,270,128 -11.2
St. Joseph
29.527,738
Okla.-Lawton
a
a
a
McAlester
913,587
a
a
a
Muskogee
124.230,263 -1.2
122.691,656
Oklahoma City.
____
49,588,691
+4.8
47.304,964
Tulsa
5,353,470
Colo.-Colo. Springs_
5,385,197
+0.6
139,781,404 -2.6
136,088,754
Denver
5.529,242
5,067,221
+9.1
Pueblo
10,555,780
11,463,118
125,715,372
1.021,919,450
60,114,348
a
a
80,796,498
205,186,223
40,783,643
3,609,737,631
168,559,711
a
666,406
a
747,440,446
303,469.980
29,951,394
756,909,318
32,862,684
9,918,313
15,139,963
124,300,365
1,060,658,347
109,195,430
a
a
86,496.358
201,955,013
46,646.784
3,369,003,839
196,576,563
a
6,027,020
a
712,593,612
248,905,975
29,691,429
792,059,532
29,760,532
+6.4
-24.3
+1.1
-3.6
--44.9
a
d339,301
371,912
4,874,744
38,004,871
776,378 -56.3
518,694 -28.3
5,494,304 -11.3
40,772,393 -6.8
456,558
522,01
4,775,014
37,186,503
378.744
543,405
4,821,754
34,157,779
6.6
+1.6
-12.6
+7.1
-4.2
a
-88.9
a
+4.9
+21.9
+0.9
-4.5
+10.4
2,842,123
8,803,521
3.270,082 -13.1
12,779,191 -31.1
3.957,064
9,758,130
3,663,957
7.880,012
115,542,239
7.351.963
111,980,549
6,408,310
a
d27,174,954
a
d782,552
18,010,799
1,112,088
a
a
a
28,032,891 -3.1
24,625,955
aa
780,764
4-10.2
608.006
21,142,794 -14.8
19,648,306
1.239.197 -10.3
1,119.224
a
22,223,074
a
843,531
16,781,858
953,761
I
1926.
7,206,132,002
7,039.835,075
+2.4
255,617,884
JAI-1
-111114
co—
$
$
%
Ninth Federal Res erve District -Minneapoll sMinn.-Duluth
40,609,230
40,646,224 -0.1
Minneapolis
323,773,600
344,758,139 -6.1
Rochester
3,182,438
2,777,782 +14.6
St. Paul
126,883,457
139,646,433 -9.1
No. Dak.-Fargo
8,141,674
6,916,458 +17.7
Grand Forks
5.846,000
5,597,000 +4.4
Minot
1,465,981
1,377,833 +6.4
S. D.-Aberdeen......
5,162,171
6.715,544 -23.1
Sioux Falls
7,847,434
6.881,149 +14.0
Mont.-Billings
2,316,709 +4.2
2,413,145
Great Falls
3,744,007 +1.8
3,813,370
Helena
12,800,390
12,478,638 +2.6
Lewistown
534,703 +24.1
663,891
1927.
Inc. or
Dec.
39,653,481
52,016000
1,235,526,434
121.929,788
303,173.241
252.022,000
897,237,757
15.981,584
14,870,209
44,444,544
79,336,000
135,731,864
42,693,921
41,620,313
1,209.464.453
130,023,604
328,046,070
243,216,000
848,138,858
15,220,914
18,511,822
50,341,174
92.620,225
135,009,525
-7.1
+25.0
+2.2
-6.2
-7.6
+3.6
+5.8
+5.0
-19.7
-11.7
-14.3
+0.5
-3.7
3,191,922,902
3,154,906,879
+1.1
Twelfth Federal R eserve Distrie t-San Franc iscoWash.-Bellingham
3,940,000
4,175,000 -5.6
24,821,000
Seattle
200.642,512
199,087,411
+0.8 1,146,690,737
Spokane
54,575,000 -0.6
54,249,000
310,347,000
Tacoma
a
a
Yakima
5.830,644
a8
6,743,977 -13.5
34,679,934
:daho-Boise
4,759.872
1,563,377 +204.4
27,489,449
)re.-Eugene
2,169,000
2,409,837 -10.0
13,133,750
Portland
155,143,105
178.898,691 -13.3
955,869,727
5,559,452
Rah-Ogden
5,554,959 +0.1
34,009,161
Salt Lake City
74,877.856
75,585.275 -0.9
429,209,080
Nev.-Reno
3,274,329
3.332,124 -1.7
17,021,452
krix.-Phoenix
12,460,000
11,278,000 +10.5
75,070,900
3a1.-Bakersfield
5,204,780
5,571,205 -6.6
32,445,973
Berkeley
19,876,189
17,837,511 +11.4
127,133,888
Fresno
14,138,748
16,088,855 -12.1
96,896,129
Long Beach
30.914,570
28,813,022
+7.3
186,460.455
Los Angeles
773,282,000
764,592,000 +1.1 4,782,881,000
Modesto
3,428,582
3,457,221 -0.8
20,838,967
Oakland
76,991,447
89,086,079 -13.6
485,914,024
Pasadena
29,567,803
27,065,196
+0.2
183,882,210
Riverside
4,688,000
4,765.869 -1.6
32.143,672
34,441,163
Sacramento
36,312,828 -5.2
200,125,251
San Diego
22,712,507
25,818.567 -12.0
155,844,681
San Francisco
810,517,000
816,209,157 -0.7 4,835,963,926
10,377,059
12,002,933 -13.5
San Jose
67,044,864
6,305,228
Santa Barbara
6,296,825 +0.1
36,745,137
Santa Monica
9,946,245
11,502,489 -13.5
57,106,045
1,897,890
2,136,725 -11.2
Santa Rosa
12,052,221
11,105,100
12,036,500 -7.7
Stockton
68,309,200
24,205,000
1,165,666,824
305.616.000
a
36,625,550
24.534,289
14,032,218
1,004,935,702
35,381,931
434,263,324
17,241,294
66,208.000
32,768,982
116,204,683
95,295,476
186,712,653
4,410,234,000
20,413,933
545,245,248
170,751.809
28,665,923
207,423.440
158,077.365
4,883,340,778
70,228,753
39,969,053
58.718,569
12,314,610
71,128,200
+2.5
-1.6
+1.5
a
-5.4
+12.0
-6.4
-4.9
-3.9
-1.2
-1.3
+13.4
-1.0
+9.4
+1.7
-0.1
+8.4
+2.1
-10.9
+7.7
+12.1
-3.5
-1.4
-1.0
-4.5
+00.0
-2.7
+00.0
-4.0
Total(13 cltles) __
542,602,781
574,390,619
1.230,532,919 1,243,960,831
Total(11 cities)
Eleventh Federal Reserve Distr ict-DallasTexas-Austin
8,408,623
7,364,053
8,701,000
Beaumont
6,737,000
190,192,864
Dallas
191,017.709
El Paso
20,524,509
20,548,003
Fort Worth
51.566,135
54,267,998
Galveston
30,663,000
38,034,000
Houston
135,602.214
136,823,314
Port Arthur
2,797,554
2,437,688
Texarkana
2.401.820
2,675,678
Waco
5,288,000
7,532,890
Wichita Falls
11,394,000
15,761,000
La.-Shreveport
19,962,742
20,831.201
Total(12 cities)_.
485.502,461
504,030,534
Total(28 cities)._._ 2,388,300,081 2,422,796,633
-1.4 14.450,129,833 14,236,193,007
1
+1.5
2,763,000
147,059,437
d6,241,582
1,399,328
43,582,169
9,560,577
7,097.000
a
5,379,104
2.706,102
142,442,846
6,619,576
263,869,110
+3.2
-5.3
-3.1
225,550,977
210,636,734
1,601,671 -12.6
1,714,204
1,009,465
-6.5
32,487,594
40,906,809
12,195,126 -21.6
9,819,000 -27.7
a
a
10,733,165
5,504,02!
a
11,538,871
5,193,275
a
46,605,609
5.316.296
+1.2
4.521,522
4.429,626
67,018.178
75,537,702 -11.3
54,961,50
63,078,048
45,056,175
12,900,000
a
1,169,322
45,926,133 -1.9
12,584,000 +2.5
a
a
1,532,242 -23.7
36,276,08
9,664,0)i
a
1,159,361
26,218,554
7,386,000
a
768.957
34,177.564
41,373,883 -17.4
21,608,258
31,177.782
19.681,606
a
a
18,461,835
a
a
+6.6
a
a
13,620,017
a
a
15.329,401
a
a
3,169,154
6.664,823
188,161,000
4.312,831 -26.5
7,149,597 -6.8
187,597,000
+0.3
3.018,819
5,996.837
145,198,000
2,984,195
6,286.734
120,545,000
17.960,211
6.589,676
22,668,400 -20.8
6,573,095
+0.3
18,189,214
5,048,768
15,075,574
5,324,234
8,747,368
4,521,954
154,300,000
2,752,997
1,350,426
1,893,982
d5,617,599
5,788,139
207,283,000
3,161,570
1,566,166
2,087.734
7,525,075
6,837,968
201,185,000
3,923,585
1,443,140
2,371,226
-25.3
-15.4
+3.0
-19.4
+8.5
-12.0
8,426,245
5,659,361
171,426,990
2,714,576
2,348,100
2,453,900
-4.3
2,382,300
2,362,000
563,381,839
573,918,910
-1.8
452,224,484
407,025,158
1,835,716
;rand total(193 cities) 47,696.486.95044.099.611,887
+8.2 271,909,486,248 266.769,402,873
+1.9 11,880.829,986 11,553,492.407
+2.8 9,543,402.830 8,610,085,484
19,818,739.614 19,904.622,301
-0.4 115,476.272,189 116,577,878,203
-0.9 4,497.890.999 4,845.388,063
-7.2 3.931,348,088 3,638,523,731
lutside New York
CANADIAN CLEARINGS FOR JUNE, SINCE JANUARY 1, AND FOR WEEK ENDING JUNE 30.
Month of June.
Siz Months.
Week Ended June 30.
Clearings at1927.
CanadaMontreal
toronto
Winnipeg
Vancouver
Dttawa
Cluebee
Eialifax
ElamIlton
Calgary
3t. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
New Westminster
Medicine Hat
Peterborough
3herbrooke
Kitchener
Windsor
Prince Albert
Moncton
Kingston
3hatham
iarnia
Total(29 cities),
8
559.136.532
531,819,903
190,830,937
76,268.313
33,233,585
32,533,393
13,919,383
26,641,728
31,916.801
10,795,466
10,238,295
15.227,775
22,267,107
17.638,988
2,500,604
2.082,258
8,218,670
5,218,180
5,151,944
4,330,568
4.203,297
1,295,158
3,714,325
3,991,685
5,234.078
20,835.070
1,611,883
4,040,814
3,824,648
1926.
$
465.322.592
438,314,447
218,695,033
72.492.217
29,979,294
26.521,780
12,308,917
23.007.891
27,324,112
12,132,775
9,793,348
13,330,182
20,032.485
18,571,346
2,576,256
2,268,986
7,953,873
5,300,178
4,879,247
4,315,188
2.422,298
1,205,298
3,609,360
3,708,128
4,571,769
22,684,124
1,511,603
3,791,798
3,472,284
Inc. or
Dec.
%
+20.2
-1.2
-12.7
+5.2
+10.9
+22.7
+13.1
+15.8
+16.8
-11.0
+4.5
+14.2
+11.2
-5.0
-2.9
-8.2
+3.3
-1.5
+5.6
+0.4
+73.5
+7.5
+2.9
+7.6
+14.5
-8.1
+6.6
+6.6
+10.1
1.848 721 3RR 1 409 floe one 4.19 R
a No longer report clearings.
1927,
$
3.013,770.354
3,008,921.024
1,144,770,840
439,940,225
174,137,082
164,575.777
77,001,616
142,304,892
186,887,105
64,656,171
55,218,286
79,498,564
127,605,666
100,342,476
13,172,182
12,825,893
44,583,223
29,538,857
28.928,801
22,530,412
20,331,673
7,017,813
21,738,435
23,265,006
29,003,544
115,321,179
9,256,612
21.671,903
19,403,268
1926.
$
2,685,836,551
2,552,080,032
1,156,459,435
432,357,014
163,873,176
140,389,539
72,101.793
121,335,116
189.683,444
68,964.907
54,899.008
68,054,116
125,670,614
101,433.983
13,147.214
13,631,497
44,925,241
27,049.098
25,806,544
20,627,355
17,991,728
7,732,923
19,195,621
20,321,610
25,172.841
101,766.781
9,491,752
20,941,467
17,425,840
Inc. or
Dec.
%
+12.2
+15.3
-1.0
+1.8
+6.3
+17.2
+6.8
+17.3
-1.5
-6.2
+0.6
+16.8
+1.5
-1.1
+0.2
-5.9
-0.8
+9.2
+12.1
+9.2
+13.0
-9.2
+13.3
+14.5
+15.2
+13.3
-2.5
+3.5
+11.4
1927,
$
129,173,330
109,278,724
38,569.714
16,146,940
6,738,727
5.834.078
2,523,501
5,768.682
6,339,271
2,326,378
2.462,859
3,282,440
5,708,152
4,366,330
583,523
450.319
1,786,866
1,236,880
1,162,087
983,601
921,965
281,168
773,689
769,541
587,562
4,120,003
267,161
917.489
845,494
620,463
569,032
1926,
$
90,510,618
74,114,168
37,775.171
12,444,161
4,601.037
6.195.956
2,247,181
4,197,660
5,667,079
2,033,094
1,655.552
3,138,926
3,464,398
3,466,010
484,068
378,072
1,407,781
1,020,021
830,716
619,343
692,299
214,996
668,951
737,277
709,045
4,093,141
235,066
684,647
682,226
559,664
438,235
Inc. or
Dec.
%
+42.7
+47.4
+2.1
+29.8
+46.5
-5.8
+12.3
+37.4
+11.9
+14.4
+48.8
+4.6
+64.8
+26.0
+20.5
+19.1
+26.9
+21.3
+39.0
+58.8
+33.2
+30.8
+15.7
+4.4
-17.1
+0.7
+13.7
+34.0
+23.9
+10.9
+29.9
1025.
$
02,928,607
77,500,450
39,226,239
13,795,747
4,097,763
5,745,664
2,586,055
4,323,392
5,944,113
2,043,042
1,907,401
2,597,907
3,791,209
3,009,868
569,914
595,567
1,263,025
1,014,763
973,338
691,945
603,825
225,469
658,815
699,862
1,006,931
3,300,000
263,068
695,081
688,655
1024.
3
107,757,959
111,847,351
51,104,020
15,338,438
5,990,283
8,472,352
2,601,119
4,964,078
5,890,809
1,083,211
1,917,394
2,784,688
4,309,267'
3,054,137
559,615
444.465
1,426,430
1,088,334
554,500
639,802
732,280
365,469
823,227
948,801
723,926
3,014,523
350,637
776,195
899,237
9 IOR 21A R70 8.518.846.239 +10.6
355.398.010 265.966.559 +33.6 273.649.515 341,362.547
b Do not respond to requests for figures. c Week ended June 29. d Week ended June 30. o Week ended July 1. •Estimated.
•
211
TILE CHRONICLE
Jinx 9 1927.]
Bonds-
$599,724,050.00
Consols of 1930
THE CURB MARKET.
48,954.180.00
Panama's of 1916-1936
25,947,400.00
of
Panama's
1918-1938
week
this
improvement
some
showed
trading
Market
Curb
49,800,000.00
Panama's of 1961
28,894,500.00
in that the trend of prices was towards higher levels. Ac- Conversion bonds
13,229.660.00
Postal Savings bonds
$766,549,790.00
tivity, however, was confined to few issues. American
$1,939,158,200.00
of 1932-1947
Loan
Liberty
First
an
for
industrials
among
conspicuous
Road Machinery was
1,308,099,450.00
Second Liberty Loan of 1927-1942
2,147,664,850.00
4 and in the preferred Third Liberty Loan of 1928
advance in the common from 83 to 143
6,296,906,450.00
Fourth Liberty Loan of 1933-1938
re48
and
11,691,828,950.00
14%
at
was
to-day
close
The
49.
to
from 32
$762,320,300.00
bonds of 1947-1952
spectively. Bucyrus Co. corn. gained over three points to Treasury
1,042.401.500.00
Treasury bonds of 1944-1954
491,212,100.00
bonds of 1946-1956
% and reacted finally to 69. Celanese Corp. common Treasury
695
467,802,650.00
Treasury bonds of 1943-1947
2,763.736,550.00
day.
to
close
the
at
71%
at
and
72%
sold up from 653' to
$15,222,115.290.00
Total
bonds
4 and sold finally at
The 1st pref. advanced from 145 to 1553
Treasury Notes155. Deere & Co. after an early rise from 146 to 156 fellto Series
$355,779,900.00
A-1927, maturing Dec. 15 1927
A-1930-32, maturing March 15 1932-- 1,320,914,650.00
Series
International
Dunhill
145 and ends the week at 1463'
50.000.000.00
A-1930
Adjusted Service-Series
53,500,000.00
inproved from 49 to 52% and finished to-day at 503. Series A-1931
70,000,000.00
Series B-1931
% to 66% and down
123,400,000.00
General Baking class A sold up from 645
Series A-1932
31,200,000.00
1931
Service-Serles
Civil
finally to 653
4. Adolph Gobel corn. reached a new high
14,400.000.00
Series 1932
2.019,194.550.00
4. The close to-day was
record selling up from 433. to 473
Treasury Certificates$229,269,500.00
improved
1927
corn.
from series TS-1927. maturing Sept. 15
at 47%. Goodyear Tire & Rubber
150,618,000.00
Series TS2-1927, maturing Sept. 15 1927
503 to 523
4 and closed to-day at 51%. N. Y. Central Series TM-1928, maturing March 15 1928._ 306,208,000.00
16,000,000.00
A-1928
Service-Series
Adjusted
at
and
1453
to
4
702,095,500.00
RR. new stock sold up from 144
1454
Treasury Savings Certificates'
finally. Am. Gas & Elec. com. was prominent during the Series
$50,878,051.85
1922, Issue of Dee. 15 1921
14,385,784.50
utilities advances from 86% to 90%, the close ot-day being Series of 1922. Issue of Sept. 30 1922
127,388,258.75
1923, Issue of Sept. 30 1922
23,196,942.50
at 89%. Electric Bond & Share securities was also conspicu- Series
Series 1923. Issue of Dec. 1 1923
93,410,288.35
ous for an advance from 72 to 763 with a final reaction to Series 1924, Issue of Dec. 1 1923
309,259,325.95
3
%
$18,252,664,665.95
at
and
75%. Electric Investors sold up from 363/ to 39
Total Interest-bearing debt
Matured Debt on Which Interest Has Ceased38 finally. Elsewhere in utilities there was very little ac$2,111,260.26
debt matured-Issued prior to April 1 1917_
tivity and small price changes. Oils were quiet but generally Old
1,554.500.00
Certificates of Indebtedness
7.808,400.00
notes
Treasury
higher. Humble Oil & Ref. improved from 56% to 58 and 3M % Victory notes of 1922-23
28,350.00
3,159,200.00
% Victory notes of 1922-23
closed to-day at 573.. Illinois Pipe Line rose from 1423' to Treasury
56,875.00
Savings certificates
14,718.685.26
1483' and rested finally at 148. Prairie Pipe Line gained
Debt
Interest
No
Bearing
four points to 180 and closed to-day at 177. Carib Syndi- United States notes
$346,681,016,00
155,420.720.98
cate was active and sold up from 20 to 253kg, with the final Less gold reserve
$191,260,295.02
transaction to-day at 25. Bonds were generally higher.
Deposits for retirement of national bank and
$47,605,174.50
Exceptions to the rule were Brunner Turbine & Eq. 73's,
Federal Reserve bank notes
2,046,396.22
demand notes and fractional currency
which dropped from 499 to 453.. Electric Refrigeration Old
Thrift and Treasury Savings stamps, Un3,611,814.90
.4c
sales,
classified
broke from 763/i to 673j with the close to-day at 67%.
244.523,680.64
Servel Corp. 6s were off from 48% to 403' and sold finally
818.511,906.931.85
Total gross debt
at 43%.
A complete record of Curb Market transactions for the •Net redemption value of certificates outstanding.
week will be found on page 236.
DAILY TRANSACTIONS AT THE NEW YORK CURB MARKET.
STOCKS(No. Shares).
Week EndId Jsdy 8.
Ind dt Muc
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
92,315
131,645
87,680
107,005
Total
466,080
47,435
Mining.
012.
BONDS (Par Value).
Domestic. Foreign God.
29,500
$949,000
24.890
Holiday-Independe nce Day
2,170,000
46,340
52,650
57,410
2,457,000
67,420
68,110
2,536,000
49,880
42,000
2,203,000
64,100
$159,000
243,360 $10,315,000
$1,356,000
258.940
216,000
295,000
357,000
329,000
Treasury Money Holdings.
The following compilation, made up from the daily Government statements, shows the money holdings of the
Treasury at the beginning of business on the first of April,
May, June and July 1927:
Holdings in U.S. Treasury April 1 1927. May 1 1927 June 1 1927, July 1 1927.
Net gold coin and bullion_
Net silver coin and bullion
Net United States notes__
Net national bank notes..
Net Federal Reserve notes
Net Fed'i Res, bank notes
Net subsidiary silver
Minor coin, Ja:
$
333,971,832
15,835.907
3,054,856
14,380,818
1,051,606
108.269
4,841,653
5,243,607
$
313,136,369
10,443,186
3,129,247
13,562,077
1.365,751
74,596
5,060,814
100,059,013
$
325,703,236
9,352.234
2,595.861
14,735.877
1,025.550
142.795
5,157,255
5.071,879
$
313,686.020
11,656.709
3.235.483
19.029,816
979,355
192,906
5,347,024
5,625,362
Treasury Cash and Current Liabilities.
The cash holdings of the Government as the items stood
June 30 1927 are set out in the following. The figures are
taken entirely from the daily statement of the United States
Treasury of June 30 1927.
CURRENT ASSETS AND LIABILITIES.
GOLD.
AssetsGold coin
Gold bullion
$
648,070,591.82 Gold eds. outstanding.._1,525,255,099.00
3,002,903,463.13 Gold fund, F. R. Board
(Act of Dec. 23 1913.
as amended June 21
1,712,002,935.92
1917)
155,420,720.98
Gold reserve
Gold in general fund- 158,265,299.05
3,650.974,054.95
Total
3 650,974,054.95
Total
Note.-Reserved against $346.681,016 of U. S. notes and $1,326.804 of Treasury
notes of 1890 outstanding. Treasury noted of 1890 are also secured by silver
dollars In the Treasury.
SILVER DOLLARS.
$
LiabilitiesAssets$
475,681,351.00 Silver ctfs. outstanding- 469,591.901.00
Silver dollars
Treasury notes of 1890
1,326,804.00
outstanding
4,762,646.00
Silver dollars in gen.fund
Total
AssetsGold (see above)
Silver dollars(see above)
United States notes_ _
Federal Reserve notes_ _
Fedi
Reserve bank notes
446.831,053
363,784.687 *359,752,675 National
Total cash in Treasury. 378,488,548
bank notes__
155,420,721 155,420,721 155,420,721 155,420,721 Subsidiary
Less gold reserve fund
silver coin_
Minor
coin
Cash balance in Treas'y 223,067,827 291,410,332 208,363,966 204,331,954 Silver bullion
Dep.In spec'l depositories,
95.595,000 198,609,000 Unclassified,-Collec
acct. certifs. of indebt'ss 381.681,000 215,154,000
Bons dui
29,968,417
38,184,932 Deposits
43.524,708
36.633,430
Dep. In Fed'i Res. banks_
in F. R. banks
Dep. In national banks:
In special deDeposits
8,061,765
7,172,424
8,628,565
8,249,837
To credit Treas. U. S.
account of
21,401,444
19,834,790 positaries
21,558,357
20,526,673
To credit diab. officers_
sales of certificates of
806,286
609,134
916,730
344.570
Cash In Philippine Islands
indebtedness
522,977
485,750 Deposits in
544,770
Deposits in foreign depts.
519,085
foreign deDep. In Fed'I Land banks
positaries:
To credit of Treasurer
Net cash in Treasury
United States
679,543,229 567,325.222 369,155,148 470,684,125
and in banks
To credit of other
Deduct current liabilities. 256,207,142 331,112.449 242.899,161 236,626,715
Govern't officers...
Deposits in nat'l banks:
Available cash balance. 423.336.087 236.212.773 126.255.987 234,057,410
To credit of Treasurer
United States
•Includes July 1, $6,894,063.30 silver bullion and $2,869,402.00 minor coin. &O.
To credit of other
not Included in statement "Stock of Money."
Govern't officers__ Deposits In Philippine
Treasury:
To credit of Treasurer
United States
Preliminary Debt Statement of the United States
June 30 1927.
of the public debt of the
statement
preliminary
The
United States June 30 1927, as made upon the basis of the
daily Treasury statements, is as follows:
475.681,351.00
Total
475,681,351.00
GENERAL FUND.
Liabilities158,265,299.05 Treasurer's checks out5.577,313.97
standing
, .
3,235,483.00 Deposits of Government
officers:
979,355.00
6,829,640.38
Post Office Departm't
192,906.00
Board of trustees. Pos19,029,816.50
tal Savings System:
5,347,024.02
5% reserve, lawful
2,869,402.00
6,426,700.49
money
6,894,063.30
803,706.39
Other deposits
Postmasters, clerks of
2,755.959.69
courts, disbursing
38,184,931.94
48,087,759.37
officers. &c
Deposits for:
Redemption of F. R.
notes(5% fd., gold) 139,873,094.78
198,609,000.00
Redemption of national bank notes (5%
fund,lawful money) 26,381.384.12
113,829.26
Retirement of additional
circulating
notes, Act May 30
371,920.29
2,830.00
1908
8.628,564.86
Uncollected Items, exchanges, &c
19,834.790.33
Net balance
2,644,285.55
236,626,715.05
234,057,409.85
609,133.66
470,684,124.90
470,684,124.90
Total
Total
Note.-The amount to the credit of disbursing officers and agencies to-day was
$368,153,427.28. Book credits for which obligations of foreign governments are
held by the United States amount to $33,236,629.05.
Under the Acts of July 14 1890 and Dec. 23 1913. deposits of lawful money for
the retirement of outstanding national bank and Federal Reserve bank notes are
212
THE CHRONICLE
[VOL. 125.
paid into the Treasury as miscellaneous receipts, and these obligations are made
under the Acts mentioned a part of the public debt. The amount of such obligations
to-day was $47,605,174.50.
$749.035 in Federal Reserve notes and $18,944,262 in national bank notes are in
the Treasury in process of redemption and are charges against the deposits for the
respective 5% redemption funds.
CHARTERS ISSUED.
June 28-The California National Bank of Beverly Hills, Calif__ 100,000
President: A. E. Huntington.
June 28-First National Bank in Jackson, Minn
30,000
President, G. A. Albertus: Cashier, A. B. Cheadle.
June 30-Minnehaint National Bank of Minneapolis, Minn
100,000
Succeeds MInnehaha State Bank and the Lake Street
State Bank, Minneapolis. Minn.
Government Revenues and Expenditures.
President, J. G. Byrum Cqshier, A. H. Elmquist.
June 30-Merchants National Bank of Mobile. Ala
500,000
Through the courtesy of the Secretary of the Treasury we
Conversion of Merchants State Bank, Mobile, Ala.
President, Ernest F. Ladd; Cashier, Joseph F. Norton.
are enabled to place before our readers to-day the details July 1-The
West Side National Bank of Denver, Colo
100,000
Conversion of the Wt
West Side State Bank, Denver. Colo.
of Government receipts and disbursements for.June 1927 and
President Emile Desserich: Cashier, Charles A. Land.
1926 and the twelve months of the fiscal years 1926-1927 July 1-First National Bank in Centralia, Wash
Conversion of the Centralia State Bank, Centralia, 100.0°°
and 1927-28.
Wash.
President, C. 0. Gingrich; Cashier, J. E. Raught.
Receipts.
-Afonth of June- --Twelve Months
- July
Ordinary
1-Hartehorne
National Bank, Hartshorne, Okla
1927.
1926-27.
1926.
1925-26.
50,000
President, M. L. Harris; Cashier, 0.0. Dolling,
$
Customs
48,987,505 47,260,645 605,499.983 579,430,093
CHANGE OF TITLE.
Internal revenue:
Income tax
474,535,133 443,339,888 2,224,992,800 1,982,040,089 July 2-The Sheridan National Bank, Sheridan, Ind.. to
"Farmers and Merchants National Bank of Sheridan."
Misc. internal revenue
55.116,873 55,257,813 644,421,542 855,599,289
Miscellaneous receipts:
CHANGE OF TITLE AND LOCATION.
Proceeds Govt.-owned secs.:
July 1-The First National Bank of Willisville, Ill., to
Foreign obligations"The
First National Bank of Ave," Ave., Ill.
Principal
19,131,960 8,354,852
45,699,573
34,147,272
Interest
69,866,971 69.829,300 160.389.600 160.090.686
VOLUNTARY LIQUIDATIONS.
Railroad securities
40,479,227
853.420
89,737,959
36,735,327 June 27-The Chickasaw National Bank of Purcell. Okla
$100,000
All others
162,694
Effective June 21 1927. Liquidating agent: Board of
894.409
63,474,987
34,568,379
Trust fund receipts (re-apDirectors Chickasaw National Bank of Purcell. Okla.
propriated for invest't)
4,109,853 2,909,790
Absorbed by the McClain County National Bank of
48,476,631
39,796,558
Proceeds sale of surplus
Purcell, Okla., No. 12134.
3,338,156
Property
1,053,378
18,068,530
25,572,013 June 30-The American National Bank of Newark, N. J_--500,000
Panama Canal tolls, &c._ _ 2.064,558 2,010,423
Effective at close of business June 29 1927. Liquidating
25,768,390
24,648,568
Receipts from misc,sources
agent: Charles G. Melerdierck, Newark. N. J.
credited directo to approAbsorbed by Fidelity Union Trust Co. of Newark, N. J.
priations
1,376,652
1,954,320
14,361,494
18,694,008 June 30-The Citizens National Bank and Trust Co. of Newark, 200.000
N. J
23,521,369 17,921,111 188,502,952 171,433.408
Other miscellaneous
Effective at close of business June 29 1927. Liquidating
agent: Charles W. Holweg. Hillside, N. J.
Total ordinary
742,690,951 651,639,349 4,129,394,441 3,962,755,690
Absorbed by Fidelity Union Trust Co.of Newark, N.J.
Excess of ordinary receipts
July 2-The First National Bank of Bremen, Ohio
25,000
over total expenditures
Effective July 1 1927. Liquidating agents: H. M.
chargeable against ordinary
Schell, L. H. Kennedy, W. A. Lauffer. Bremen,
receipts
Ohio. and A. D. Hufford. Zanesville, Ohio.
378.974,266 289,436,687 635,809,922 377,787,817
Excess of total expenditures
Absorbed by Bremen Bank Co.
chargeable against ordinary
July 2-Franklin National Bank in New York, N. Y
800,000
receipts over ordinary reEffective July 1 1927. Liquidating agent: Interstate
ceipts
Trust Co. of New York. N. Y.
Absorbed by the Interstate Trust Co. of New York.
Expenditures.
CONSOLIDATIONS.
OrdinaryJune 27-The Merchants National Bank of Worcester, Mass-1,
(Checks & warrants paid, &c.)
6
500000
00:000
and
Fitchburg Bank and Trust Co., Fitchburg, Mass
General expenditures
157,458,207 154,235,522 1,857.858,563 1,826,726,924
Consolidated under the Act of Nov. 7 1918. as amended
Interest on public debt_a_. 80,147,528 89,445,982 787,019,578 831.937.700
Feb. 25 1927, under the charter of the Merchants
Refund of receipts:
National Bank of Worcester, No.7595, and under the
Customs
2,292,712
1,941,756
20,320,624
27.744,698
Internal revenue
Corporate title of "Worcester Count6 National Bank
14,392,137 23,505,731 117,412,173 182,220.053
of Worcester." with capital stock of
Postal deficiency
13,219,382 11,517,408
1,875.000
27,263,391
39,506,490
The consolidated Bank has one branch located in
Panama Canal
654,291
453,358
8,305,345
9,017.719
Fitchburg. Mass.
Operations in special accounts:
30-The First National State Bank of Camden, N. J
Railroads
1 000,000
54,627
19,030
1.042,746
2,725,801 June
and -The Camden National Bank, Camden, N. J
War Finance Corporation.. 8150,317
8630.648 527,065.782 519,691,166
100,000
Consolidated under the Act of Nov. 7 1918, under the
Shipping Board
347.561
815.281
19,011,397
23,043,032
charter of the First National State Bank of Camden.
Alien property funds
1322.707
378.729
5496318
3,515,999
1209.
No.
and
the
under
corporate title "First
Adjusted service certif. fund_ 5550,571
452,384 c115,219,352 120,152,238
Camden National Bank and Trust Co.," with capital1.300,000
Civil service retirement fund..
588,467
5186,163
5425,195
10,815,743
stock of
Investnent of trust funds:
The consolidated bank has two branches, both located
Government life insurance_ 3,994,631
2,692,077
47,315,973
38.290,346
in Philadelphia. Pa.
District of Columbia Teach30-The First National Bank of Orange. Calif
49.968
ers' Retirement
65,033
150,000
289,981
297,037 June
and -The National Bank of Orange, Calif
Foreign Service Retirement
56,000
52,500
87,268
150.000
100,033
Consolidated under the Act of Nov. 7 1918 under the
Gen'l Railroad Contingent65,254
152.681
870.678
1,209,176
charter and title of "the First National Bank of
Orange," No. 8181, with capital stock of
Total ordinary
272.944,396 284,855,661 2,974,029,674 3,097,611,823
300,000
June 30-The First Na lone! Bank of Ripley, W. Va
3
35
0
00
00
0
and -The CitizensState Bank of Ripley, W. Va
Public debt retirements chargeConsolidated under the Act of Nov.7 1918 as amended
able against ordinary reFeb.
25
under
charter
1927,
micas:
the
and corporate title of
"The First National Bank of Ripley," No. 10762,
Sinking fund
333.528,400 317,091,750
with capital stock of
Purchases and retirements
70,000
July 2-The First National Bank of Mayfield. Ky
from foreign repayments 18,259,500 4.393.500
150,000
19,254,500
4,396,500
and -The City National Bank of Mayfield. Ky
Received from foreign gov100,000
Consolidated
ernments under debt setunder the Act of Nov. 7 1918 under the
charter and oorporate title of "The First National
67.011,800 72,950,000 159,981,800 165,260,000
tlements
Bank of Mayfield," No. 2245, with capital stock of
Received for estate taxes_
500,000
Purchases and retirements
BRANCHES AUTHORIZED UNDER THE ACT OF FEB. 25 1927.
from franchise tax re27
June
-Worcester
National
County
Bank
of
Worcester,
Mass.
ceipts (Federal Reserve
Location
of branch-Vicinity of 511 Main St., Worcester.
and Federal Intermediate
June 30-The Broad and Market National Bank and Trust Co. of Newark,
Credit banks)
1,231,835
567,901
N.
J.
Location
of branch-Vicinity of Springfield Ave. and
.5,501,000
Forfeitures, gifts, &c
3,500
5,578,310
62,900
Prince St., Newark,
90,772,300 77,347,000 519,554,845 487,378,051 July 2-First National Bank in Pontiac. Mich. Location of branchTotal
Vicinity of Glenwood Ave. and Perry St., Pontiac.
Total expenditures chargeable.,
against ordinary receipts-03,716,695 382,202,661 3,493,584,519 3,584,987,873
Auction Sales.-Among other securities, the following,
Receipts and expenditures for June reaching the Treasury in July are included.
a The figures for the month include $148,507.03 and for the fiscal year 1927 to not actually dealt in at the Stock Exchange, were sold at auction
date $2,401,478.49 accrued discount on war savings certlicates of matured series, in New York, Boston, Philadelphia and Buffalo on Wednesand for the corresponding periods last year the figures include $399,193.41 and day of
this week:
$5,821,883.67, respectively.
By R. L. Day & Co., Boston:
b Excess of credits (deduct).
c In accordance with established procedure the appropriation of 6116,000.000 Shares. Sto
$ cks
per sh. Shares. Stocks. .$per sh.
available Jan. 1 1927, and interest on investments in the fund due on that date, 130 Hamilton Mfg, Co
$27 lot 25 Mass. Ltg, Cos.,6% pref. undep114M
amounting to 67,400,000. were invested in adjusted service obligations aggregating 10 Fairhaven Mills, pref
182
3H 11 Boston Belting Corp., pref.,
$123,400,000 face amount, bearing interest at the rate o14% per annum:$23,800.000 5 Ludlow Mfg. Associates
1H
face amount of one-year 4% Treasury certificates of the adjusted service series held 47 Nashua Mfg. Co., pref_93X & div. 100
.5B
0oston mg. Prop., corn.,
paN
roll
in the investment account were redeemed as of Jan. 1 1927, and the proceeds re- 50 Pepperell Mfg.Co
14
110H
v. t e
5
invested in an equal face amount of like kinds of obligations. The difference between 20 Otis Co
175 Fall River Electric Light Co.,
35
the amount appropriated and amount charged under ordinary expenditures above is 10 Amer. Founders Trust, corn.-- _ 5831
undep., par 525- _52 H. 62i, 53, 53H
10 Amer. Founders Trust, let pref.
due to variations in the working cash balance required.
Mortgage
note
A
otpeartfm
m
lice,n
or$175,000
pay
o!
B, par $50
Apartments,
45
42 Towle Mfg. Co
132
able to Boyle-Robertson Con5 W.T. Grant Co., corn
struction Co., dated Aug. 19
71
9 units First Peoples Trust
1925, due Jan. 15 1926, together
58
958-100 Rockland Lt. & Pr. Co__1334e.
with 2d mtge. of same amount, of
5 First National Stores, 1st pret___ 99
the premises numbered 512
3 Central Maine Power Co.,7% pf_103Si
Beacon St., Boston. securing said
National Banks.-The following information regarding 3
units First Peoples Trust
note
58
$10.000 lot
national banks is from the office of the Comptroller of the 7 special units First Peoples Trust_ 5
gommercial nutI3giscelattneons Anus
Currency, Treasury Department:
By Barnes dc Lofland, Philadelphia:
Shares. Stocks.
$ per sh.
10 Community Trust Co., par $56_$6 lot
5 Integrity Trust Co., par 650
Capital.
5503j
June 29-The Winter Garden National Bank of Crystal City,Tex. $25,000 14 Integrity Trust Co., par $60___ _550
Correspondent: G. C. Jackson, Crystal City, Texas.
44 Union National Bank
310
June 30-Schuyler National Bank of New York, N Y
200,000 5 Union National Bank
315
Correspondent: bider Plato, 540 Amsterdam Ave.,
6 Overbrook National Bank
175
New York, N. Y.
3 National Bank of Commerce.... 285
July 2-The West Branch National Bank of Jersey Shore, Pa
125,000 4 Northern Central Trust Co ,
Correspondent: Clarence L. Peaalee, Williamsport, Pa.
par $50
130.1(
3 Chelten Trust Co
268
APPLICATIDNS TO ORGANIZE APPROVED.
10 Bankers Trust Co., par $50_ .... 73
June 29-The First National Bank of Marlton, N. J
25,000 10 Bank of North Amer. & Tr.00_389
Correspondent: Herbert R. Snyder. Marlton, N. J.
50 Republic Trust Co., par $50
170
June 30-The First National Bank of Columbia Heights, Minn_ 6 Logan Bk.& Tr. Co., par $50_ _.90
Succeeds the Columbia State Bank of Columbia Heights, 25,000 40 Mutual Trust
Co.,
par
$60
15534
Minn.
15 Phila. Co. for Guar. Mtges ----22334
Correspondent: G. 0. Lee. Columbia Heights, Minn.
APPLICATIONS TO ORGANIZE RECEIVED.
Shares. Stocks.
$ per oh.
20 Frankford dr Southw'k Pass. Ry _225
25 Northern Liberties Gas Co.,
par $25
37
10 Phila. Germantown & Norristown RR
128
20 Philadelphia Bourse, corn.. Par
$50
26)(
20 John B. Stetson Co., corn., no
Par
9834
20 John B. Stetson Co
98
Bonds.
Per cent.
$100 West Philadelphia Passenger
Ry. 53js, 1956
97
$4,000 Indiana Columbus & East.
Tree.gen.& ref. 55, etf. of dep-$150 lot
$1,000 Wayne Coal Co. 1st s. f. es,
March 1 1937, ctf, of dep
4
JULY 9 1927.] '
213
THE CHRONICLE
By Adrian H. Muller & Sons, New York:
per oh.
$ per sh. Shares. Stocks.
Shares. Stocks.
38 Young & Glenn Inc.. no par_ $1,116 lot 30,000 Amer. Brown Boveri Elec.
Corp. v. t. C. for Founders stock,
190 Young & Glenn Inc _no par $5,111 lot
6
no par
2,000 Amer. Multitone Papers
$5 lot 1 Joseph F. Vion Inc., N. Y. Corp_400
Corp., par $10
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Concluded).
*31 .75 Aug. 15 *Holders of rec. Nov. 1
First Federai Foreign Invest. Trust
15
% Aug. 1 Holders of rec. July 15
Fisk Rubber cony. 1st pref. (quar.)
Aug. 1 *Holders of rec. July 20
General Cigar, common (quarterly)- - - - *31
"1% Sept. 1 *Holders of rec. Aug. 24
Preferred (quarterly)
By Wise, Hobbs & Arnold, Boston:
*191 Oct. 1 *Holders of rec. Sept. 24
Debenture preferred (quar.)
per oh. General Development (guar.)
$ per oh. Shares. Docks.
25c. Aug. 20 Holders of rec. Aug. 10
Shares. Stocks.
5
1 special unit First Peoples Trust
283
131 Aug. 1 Holders of rec. July 150
57 Nat. Shawmut Bank
Gimbel Brothers Co., pref. (guar.)
22 New Bedford Gas & Edison Light
283
$1.50 July 1 Holders of rec. June 20
27 Nat. Shawmut Bank
Globe-Wernicke Co., cons. (guar.)
Co., undep., par $25
10491 ex-di.
134 July 15 Holders of rec. June 30
50 Old Colony Invest. Trust,com.2891-28
Preferred (guar.)
12
units
Commercial
Finance
Corp_
3591
1191
32.50 July 15 Holders of rec. July 15
1 Hamilton Woolen Co
Goodall Rubber, common
56-5691 16 New England Power Association,
Aug. 1 Holders of rec. July 15
$5
180 Arlington Mills
Common (extra)
common
7291-7291 ex-cliv. Hammermill Paper, corn. (guar.)
3.25c. Aug. 15 *Holders of rec. July 30
25 Edison Electric Ill. Co. of Brock58
6191 4 units First Peoples Trust
ton, undep., par $1
Happiness Candy Stores3 Elec. Lt. & Power Co. of Abing12
"(f) Aug. 15 "Holders of rec. July 20
2 Laconia Car Co., 2d pref
Common (1-40th share corn. stock)
ton & Rockland, undep„ par $25- 5691 Hercules Powder, pref. (guar.)
61
*131 Aug. 15 'Holders of rec. Aug. 5
2 Laconia Car Co., let pref
65
12 Northern Texas Elec. Co., pref
*500. July 26 *Holders of rec. July 20
10 Haverhill Electric Co., undep.,
Homestead Mining (monthly)
23 First National Stores, Inc.. pref. 99
91
*3
July 27 'Holders of roc. July 20
par $25
Houston Oil, preferred
58
82 Mass. Ltg. Cos.,6% pref_11434 ex-div 29 units First Peoples Trust
50c. Aug. 1 Holders of rec. July 20
Internat. Cigar Machine, com
25 Blackstone Val. O. & E. Co.,
34 Aug. 1 Holders of rec. July 15
10 Mass. Lighting Cos., common.. 144
Internat. Shoe, pref.(guar.)
com., undep., par $50
130
10 Nor. Bost. Ltg. Prop., 6% pref.
July 28 Holders of rec. July 20
Kaufmann Dept. Stores, corn. (quar.).... $2
123 ex-div. 100 Nor. Bost. Ltg. Prop., com.
V. t. C
*25c. Aug. 1 "Holders of rec. July 20
Kress (S. H.) & Co. (guar.)
14591-144-14591ex-div. Landay Bros.. Inc., class A (guar.)
V. t c
75c. Aug. 1 Holders of rec. July 15a
50 Internat. Scour. Trust., com..- 5991
5691 51 New Bedford Gas & Edsion Lt.
July 1 June 26 to July 1
63 Western Mass. Cos
4
Laurens Cotton Mills
Co.. par 325._ _ _104-10384-104 ex-div. Lehigh Valley Coal Co. (guar.)
$1.25 Aug. 1 July 10 to July 31
38 American Glue Co., common_ _ _ 3491
4534 50 Blackstone Vali. G. & E. Co.,
Finance
Corp
Mutual
units
*40c. Aug. 1 *Holders of rec. July 20
15
Matthews Industries, cl. A (guar.)
130
corn., uncle's., par $50
58
3734c Aug. 15 Holders of rec. Aug. la
1 unit First Peoples Trust
Miami Copper Co. (guar.)
*500. Aug. 1 *Holders of rec. July 20
Motor Products, common (guar.)
'8125 Aug. 1 *Holders of rec. July 20
Preferred (guar.)
DIVIDENDS.
Aug. 1 *Holders of rec. July 18
*2
Mullins Body, pref. (guar.)
National Dept. Stores, 1st pref.(guar.). *134 Aug. 1 *Holders of rec. July 18
•134 Aug. 1 *Holders of rec. July 16
Dividends are grouped in two separate tables. In the National Tea, pref. (guar.)
York Merchandise, com. (guar.) *50c. Aug. 1 'Holders of roe. July 20
first we bring together all the dividends announced the New
"$1.75 Aug. 1 *Holders of rec. July 20
Preferred (guar.)
*161sc Aug. 1 *Holders of rec. July 20
Circuit, corn.(monthly)
Orpheum
in
current week. Then we follow with a second table,
*$1
Aug. 1 *Holders of rec. July 20
Outlet Co., corn. (guar.)
"31.75 Aug. 1 *Holders of rec. July 20
First preferred (guar.)
which we show the dividends previously announced, but
*$1.50 Aug. 1 'Holders of rec. July 20
Second preferred (guar.)
25c. July 15 Holders of rec. July la
which have not yet been paid.
Pacific Steel Boiler (guar.)
Aug. 1 *Holders of rec. July 1
Paraffine Cos., Inc., cons. (stock div.)_ _ *f20
The dividends announced this week are:
131 Sept. 1 Holders of rec. Aug. 15
(guar.)
Pittsburgh Steel, pref.
*31 .25 Aug. 1 *Holders of rec. July 21
Postum Co. (quarterly)
131 Oct. 1 Holders of rec. Sept.15a
Remington Typewriter 1st pref. (quar.)_
When
Books Closed.
Per
Oct. 1 Holders of rec. Sept. 15a
2
Second preferred (guar.)
Days Inclusive.
Celli. Payable.
Name of Company.
$4 Aug. 8 Holders of rec. July 5
St. Louis Cotton Compress
Aug. 15 *Holders of rec. Aug. 10
*31
Sanford
Mills
Railroads (Steam).
Shell Transport & Trading, Amer. she '$1 .45 July 22 'Holders of rec. July 14
*3
Aug. 1 *Holders of rec. July 15
Cuba RR.. preferred
15 Holders of rec. July 8
$1.25
July
corn.
(quar.)
Spalding
&Bros.,
(A.
G.)
*3
of
rec.
Jan.
16
Febl'28 *Holders
Preferred
First preferred (guar.)
191 Sept. 1 Holders of rec. Aug. 18
Sept. 1 Holders of rec. Aug. 18
2
Second preferred (guar.)
Public Utilities.
Stedman Products Co., pref. (quar.)--- $1.75 July 1 Holders of rec. June 24
Aug. 1 July 16 to Aug. 1
Amer. Light & Traction. common (guar.) 2
60e. Aug. 15 Holders of rec. July 15
Swift International
Bangor Hydro-Elec. Co., common (au). 191 Aug. 1 Holders of rec. July 11
10c. Aug. 1 July 21 to Aug. 1
Teck-Hughes Gold Mines
July
la
of
rec.
Holders
July
15
pf.(qu.)
$1.50
El.
Cos.,
Commonwealth Gas &
Thompson Products. cl. A & B (guar.) *30c. Oct. 1 *Holders of rec. Sept.20
Cities Service Pow.& Lt.,7% pf.(qu.) *58 1-3 July 15 *Holders of rec. July 1
*10c. Oct. 1 Holders of rec. Sept.20
Class A and B (extra)
*75c. Aug. 1 *Holders of rec. July 21
Community Pow & Lt corn. (No. 1)*134 Sept. I *Holders of rec. Aug. 20
Preferred (quar.)
*31.75 Aug. 1 *Holders of rec. July 21
First preferred (guar.)
•15c. Aug. I *Holders of rec. July 12
Tide Water Associated Oil, corn
*2
Sept. 1 *Holders of rec. Aug. 22
Second preferred (guar.)
134 Aug. 15 Holders of rec. July 25
Tobacco
Products
(quar.).
Corp.,
cl.
A
Holders
of
rec.
July
30
Aug.
15
pref
3
1st
Street
Ry.,
Mass.
Eastern
•45c. Aug. 1 *Holders of rec. July 20
Tung-Sol Lamp Works, A (guar.)
Aug. IF Holders of rec. July 3()
3
Sinking fund stock
*20c. Aug. 1 *Holders of rec. July 20
Class B (quarterly)
Aug 1 Holders of rec. July 16
3
Preferred B
*191 July 15 *Holders of rec. July 5
Union Biscuit, pref. (guar.)
3
Aug 1 Holders of rec. July 15
Edison Elec. Ill., Boston (quay.)
*50c. Aug. 10 'Holders of rec. July 18
Union Oil of Calif.(guar.)
*6234c Aug. 1 *Holders of rec. July 25
Edison Elec. III., Brockton (guar.)
$1.75 July 5 Holders of rec. June 22
United Hotels, preferred (guar.)
"31.50 Aug. 1 *Holders of rec. July 15
Electric Investors $6 pref. (guar.)
U. S. Finishing, common (guar.)
191 July 15 Holders of rec. July 5
*81.75 Aug. 1 *Holders of rec. July 15
$7 preferred (quar.)
13( July 1 Holders of rec. June 23
Preferred (quarterly)
Empire Gas & Fuel, 7% pref. (mthly.).* 58 1-3c Aug. 1 *Holders of rec. July 15
Aug. 15 Holders of rec. July 20
2
lot
Rubber,
U.
S.
preferred
(quar.)-.
rec.
July
15
*Holders
of
662-3e Aug. I
8% preferred (monthly)
"31
Aug. 1 *Holders of rec. July 15
Vick Chemical (guar.)
Green & Coates Sts. Pass. Ry.(quar.)-- $1.30 July 7 June 23 to July 7
134 July 28 Holders of rec. June 30
Warner (Chas.) Co., 1st & 2d pt.(gu.)
154 Sept. 1 Holders of rec. Aug. 10
Havana Elec. Ry.,6% pref. (guar.)..._
All
Aug. 1 *Holders of rec. July 19
(quar.)
Machine,
pref.
White
Sewing
Illinois Northern Utilities, pref. (guar.)_ *191 Aug. 1 *Holders of rec. July 15
Young (J. S.) Co., common (quar.)...... 234 July 1 Holders of rec. June 24
63c. Aug. I Holders of rec. July 15
Lawrence Gas & Electric (guar.)
July
1 Holders of rec. June 24
191
(quarterly)
Preferred
750. Aug. 1 Holders of rec. July 16
Long Island Lighting, common (quar.)
*62340 Aug. I *Holders of rec. July 18
Lowell Electric Light (guar.)
National Electric Power,class A (guar.). *45c. Aug. 1 *Holders of rec. July 20
Penn-Ohio Edison Co., prior pref.(au). 191 Sept. 1 Holders of rec. Aug. 20
Below we give the dividends announced in previous weeks
$1.50 July 15 Holders of rec. June 30
$6 preferred (guar.)
and not yet paid. This list does not include dividends anJuly 7 July 1 to July 7
& Grays Ferry Passenger Ry.._ _ $2
Pub.Serv. Corp.of N.J.,6% pf.(m'thly) 50c. July 30 Holders of rec. July 7a nounced this week, these being given in the preceding table.
Railway & Light Securities, cons.(qu.)._ 50c. Aug. 1 'Holders of rec. July 15a
134 Aug. 1 Holders of rec. July 15a
Preferred (guar.)
When
Books Closed
Per
$1.75 Aug. 1 Holders of rec. July 16
Standard Power & Light, pref. (guar.)
Days Inclusive.
ce,a. Payable.
Name of Company.
131 Aug. 15 Holders of rec. Aug. 1
West Penn Elec. Co., 7% pref.(guar.)
134 Aug. 15 Holders of rec. Aug. 1
Six per cent preferred (guar.)
Railroads (Steam).
191 Sept. 15 Holders of rec. Aug. 25
West Penn Railways,6% pref. (quar.).._
Alabama Great Southern, pref
391 Aug. 15 Holders of rec. July 11
Wisconsin River Power, pref. (guar.)... *$1.75 Sept. 15 *Holders of rec. Aug. 31
3
Aug. 15 Holders of rec. July 11
Preferred (extra)
Santa
Fe,
corn.
(qu.)
131 Sept. 1 Holders of rec. July 220
Atch. Topeka &
Banks.
75c. Sept. 1 Holders of rec. July 228
July 8 Holders of rec. July 7a
Common (extra)
5
Harriman National
234 Aug. 1 Holders of rec. June 246
July 8 Holders of rec. July 7a
Preferred
5
Extra
Atlantic Coast Line RR.,common
334 July 11 Holders of rec. June 15a
134 July 11 Holders of rec. June 15a
Common (extra)
Fire Insurance.
134 Sept. 1 Holders of rec. July 160
July 15 Holders of rec. June 306 Baltimore & Ohio, corn.(guar.)
4
American-Alliance (guar.)
Sept. I Holders of rec. July 166
1
July 15 July 2 to
July 14
10
Preferred (guar.)
National Liberty
134 Aug. 1 Holders of rec. July la
July 15 July 2 to
20
Canada Southern
Extra
July 14
lf
July 10 Holders of rec. June 30a
Carolina Clinchfield & Ohio, corn.
191 July 10 Holders of rec. June 30a
Miscellaneous.
stock (quar.) '
(qu.)Stamped
Aug. 15 Holders of rec. Aug. 56
2
Alpha Porticmd Cement (guar.)
*75c. July 15 *Holders of rec. July 1
Central RR. of New Jersey (guar.)
2
July 15 Holders of rec. July 50
Aug. 1 Holders of rec. July 15
American Cigar, corn. (guar.)
2
Extra
Amer. Machine & Foundry, corn.(guar.) 50c. Aug. 1 Holders of rec. July 20
Chicago Indianan.& Louisville, com---- 234 July 11 Holders of rec. June 25
1
July 11 Holders of rec. June 25
134 Aug. 1 Holders of rec. July 20
Common (extra)
Preferred (guar.)
July 11 Holders of rec. June 256
2
American Radiator, common (quar.)-.- *31.25 Sept. 30 *Holders of rec. Sept. 15
Preferred
*134 Aug. 15 *Holders of rec. Aug 1
July 20 Holders of rec. July 136
5
Preferred (guar.)
Cincinnati Northern
*50c. Oct. 15 *Holders of rec. Oct. 5
July 20 Holders of rec. July la
2
Cleve. Cin.Chic.& St. Louis, corn
Amer. Vitrified Prod., corn.(quar.)
131 July 20 Holders of rec. July la
Archer-Daniels-Midland Co., corn. (qu.) 750. Aug. 1 Holders of rec. July 21
Preferred (guar.)
Aug.
1
Sept.
20 *Holders of rec. Aug. 27
(guar.)
Delaware
Holders
of
rec.
July
21
191
& Hudson Co. (guar.)
•291
Preferred
334 July 15 Holders of rec. June 30
Delaware, Lackawanna & West.(quar.)- $1.50 July 20 Holders of rec. July 9a
Auto Furnace Co., Pittsburgh, pref
•25c. Aug. 1 *Holders of rec. July 20
July 15 Holders of rec. July 80
Detroit River Tunnel
3
Balaban & Katz, common (monthly)
*25c. Sept. 1 *Holders of rec. Aug. 20
234 July 15 July 2 to July 14
Georgia Railroad & Banking (quar.).-_
Common (monthly)
*25c. Oct. 1 *Holders of rec. Sept. 20
Great Northern, pref.(guar.)
234 Aug. 1 Holders of rec. June 256
Common (monthly)
Oct.
1
'131
Sept.
20
IN Sept. I Holders of rec. Aug. ba
Illinois
*Holders
of
rec.
Central,
common (guar.)
Preferred (guar.)
•134 Aug. 15 'Holders of rec. Aug. 1
Sept. 1 Holders of rec. Aug. 50
3
Preferred
Beacon Oil, pref. (guar.)
July 15 *Holders of rec. June 29
"2
July 15 Holders of rec. June 30a
Kansas City Southern, pref. (guar.)
1
Binney & Smith Co.(guar.)
July 15 *Holders of rec. June 29
*8
Little Schuylkill Nay. RR.& Coal
$1.25 July 15 Holders of rec. June 170
Extra
$1.25 Sept. I Holders of rec. Aug. 150 Louisville & Nashville
Borden Company. common (guar.)
334 Aug. 10 Holders of rec. July 150
Mahoning Coal RR.,corn.(guar.)
'liftman Electric Co.. com. WO (No. 1) 250. Aug. 1 Holders of rec. July 15
$12.5 Aug. 1 Holders of rec. July 15a
31.75 Aug. 1 Holders of rec. July 15
Preferred (guar.)(No. 1)
Michigan Central
July 29 Holders of rec. July la
20
131 Aug. 1 Holders of rec. July 20
Brown Shoe, pref. (guar.)
Missouri-Kansas-Texas, pref. A (guar.). 134 Aug. 1 Holders of rec. July 150
*191 Aug. 1 *Holders of rec. July 25
New York Central RR.(guar.)
Bunts Brothers, Prof. (guar.)
Aug. 1 Holders of rec. July la
2
Canadian Industries, Ltd., pref. (guar.) 134 July 15 Holders of rec. June 30
Norfolk & Western, common (gnar.)
Sept. 19 Holders of rec. Aug. 31a
2
*747 Sept. 1 Holders of rec. Aug. 13
Celanese Corp. of Amer., pref
1
Aug. 19 Holders of rec. July 30(s
Adjustment preferred (guar.)
Century Ribbon Mills, Prof. (guar.).- •Ili Sept. 1 *Holders of rec. Aug. 19
Northern Central
July 15 Holders of rec. June 300
$2
Cleveland-Cliffs Iron, common (guar.)._ *31 July 25 *Holders of rec. July 15
134 Aug. 1 Holders of rec. June 254
Northern Pacific (guar.)
Aug. 1 Holders of rec. July 14
4
July ii June 25 to July 11
Northern Securities
$1
Cerro de Pasco Copper (guar.)
City Stores Co., class A (guar.)
'8791c Aug. 1 *Holders of rec. July 15
8794 Aug. 31 Holders of rec. Aug. la
Pennsylvania RR.(guar.)
Cluett, Peabody & Co., Inc., corn.(au) $1.25 Aug. 1 Holders of rec. July 21
Pere MarquetteAug. 1 *Holders of rec. July 18
*$1
Columbian Carbon (guar.)
f20 Oct. 1 Holders of rec. Sept. 76
yCommon (in common stock)
Commercial Alcohols, Ltd., com
25e. July 20 Holders of rec. July 10
Prior preference (guar.)
191 Aug. 1 Holders of rec. July 140
82C. July 15 Holders of rec. June 30
134 Aug. 1 Holders of rec. July 146
5% preferred (guar.)
Preferred
Consumers Company, pref
Philadelphia & Trenton (guar.)
394 Aug. 20 Holders of rec. Aug. 10
234 July 10 July 1 to July 11
21.4 July 20 Holders of rec. July 90
Pittsburgh Cincinnati Chicago & St. L.._
Credit Alliance Corp., corn,& el. A (qu.) 75e. July 15 Holders of rec. July 6
July 15 Holders of rec. July 6
Common and class A (extra)
Pittsburgh & Lake Erie
$1
32.50 Aug. 1 Holders of rec. July la
Pittsburgh & West Virginia (quer.).-- 194 July 30 Holders of rec. July 150
Preferred (guar.)
131 July 15 Holders of rec. July 6
.334 Aug. 1 *Holders of rec. July 15
Reading Company, corn. (guar.)
Cuba Company, pref
31
Aug. 11 Holders of rec. July I4a
July 15 Holders of rec. June 30
First preferred (guar.)
Dictograph Prod. Corp., pref.(guar.).
2
500. Sept. 8 Holders of rec. Aug. 22a
Aug. 1 *Holders of rec. July 20
50c. July 14 Holders of rec. June 200
Second preferred (guar.)
Eureka Vacuum Cleaner (guar.)
*31
Aug. 1 *Holders of rec. July 20
*e5
50c. Oct. 13 Holders of rec. Sept.206
Second preferred (guar.)
Stock dividend
Exchange Buffet (guar.)
37910 July 30 Holders of rec. July 150 St. Louis-San Francisco Ry .prof.(guar.) 134 Aug. 1 Holders of rec. July 150
134 Nov. 1 Holders of rec. Oct. 156
Preferred (guar.)
Fageol Motors, pref
*35c. July 15
131 Aug. 1 Holders of rec. July la
Aug. 1 Holders of rec. July 19
Southern Railway, common (quar.)- 2
Fajardo Sugar Co. (guar.)
131 July 15 Holders of rec. June 210
Preferred (guar.)
Federal Knitting Mills, Corn. (guar.).- *62340 July 15 *Holders of rec. July 5
Aug. I Holders of rec. July 23a
3
Finance Co.of Amer.(Balt.), com.A & B 1234c. July 15 Holders of rec .July 56 Virginian Railway, preferred
134 Aug. 25 Holders of rec. July 230
Seven per cent preferred (guar.)
191 July 15 Holders of rec. July 5a Wabash Ry., preferred A (guar.)
I
214
THE CHRONICLE
[VOL. 125.
Per
When
Cent. Payable.
Books Closed.
Per
When
Books Closed
Days Inclusive.
Name of Company.
Cent. Payable.
Days Inclusive.
Public Utilities.
Public Utilities (Concluded).
Adirondack Pow.& Light, corn. (m'thly) 100. July 30 Holders of rec. July
21a Southeastern Power & Light, corn. (qu.) 25c. July 20
Common (monthly)
Holders of rec. June 30
10c. Aug. 31 Holders of rec. Aug. 200 Southern Calif. Edison, original
of. (qu.) 50e. July 15 Holders of rec. June 200
All-America Cables (guar.)
134 July 14 Holders of rec. June 27a Southern Canada Power,
pref. (guar.)._
134 July 15 Holders of rec. June 25a
American Gas (quar.)
2
July 13 Holders of rec. June 30a Southern N. E. Telep., corn. (guar.)_ _
2
__
July 15 Holders of rec. June 30a
Amer. Gas & Elec.. pref. (quar.)
$1.50 Aug. 1 Holders of rec. July 9
Southern Wisconsin Elec., pref. (guar.). 134 July 15 Holders of
Amer. Light & Trac., pref. (guar.)
rec. June 30a
134 Aug. 1 July 16 to Aug. 1
Standard Gas & Electric, corn. (guar.)
American Telep. & Teleg. (guar.)
8734e July 25 Holders of rec. June 30a
2% July 15 Holders of rec. June 20a
Prior preference (guar.)
134 July 25 Holders of rec. June 30
Associated Gas& Elec., class A (guar.)__ k50c.
Holders of rec. June 30
Aug.
1
Standard
Power
&
Light,
pref.
(guar.)
_ _ $1.75 Aug. 1 *Holders of rec. July 16
Bell Telephone of Canada (guar.)
2
July 15 Holders of rec. June 23
Tampa Electric Co., corn. (guar.)
Bell Telep. of Penna., pref. (guar.)
Aug.
50C.
u) A
u 15 Holders of r.
ec July 25a
134 July 15 Holders of rec. June 20a
Common (1-50 share common stock)_
Preferred (guar.)
Holders of rec. July 25a
1% Oct. 15 Holders of rec. Sept. 20a Trinidad Electric Co.(guar.)
July 11 July 1 to July 11
Brooklyn Borough Gas. common (guar.) $1.50 July 11 Holders of roe. June 300
134
United Gas & Elec. Co.. preferred
234 July 15 Holders of rec. June 30a
Bklyn.-Manhattan Transit, COM. (qu.) $1
July 15 Holders of rec. July la United Gas Improvement
El
Preferred, series A (guar.)
July 15 Holders of rec. June 30a
$1.50 July 15 Holders of rec. July la United Light & Pow., corn.(quar.)
A & B (qu.)_ 12c. Aug. 1 Holders of rec. July 15
Preferred, series A (guar.)
$1.50 Oct. 15 Holders of rec. Oct. is Virginia Electric & Power,
6% pr.(guar.) 13.4 Sept. 20 Holders of rec. Aug. 310
Preferred, series A (guar.)
$1.50 Jan16'28 Holders of rec. Dec. 310
7%
preferred
(guar.)
Preferred, series A (guar.)
Sept. 20 Holders of rec. Aug. 31a
31.50 tpri6'28 Holders of roe. Apr 1'28a Washington Water Power,
Spokane(qu.) 2
July 15 Holders of rec. June 240
Canada Northern Power, pref. (quar.)_ _
1% July 15 Holders of rec. June 30
Central UL Pub. Serv., pref. (guar.) _ _ _ _ $1.50 July 15 Holders of rec. June 30a West Penn Power Co., 7% pref. (quar.)_
194 Aug. 1 Holders of rec. July 50
6%
preferred
(guar.)
13.4 Aug. 1 Holders of rec. July 5a
Central Power Co. (Nebraska), Pf. (qu.) 134 July 15 Holders of rec. June 30a
Western Power Corporation. pref. (qu.) 194 July 15
Central Power & Light, pref.(guar.)_ _ _ - 1% Aug. 1 Holders of rec. July 15a
of rec. June 30a
Western States Gas & Elec., pref. (qu.). 134 July 15 Holders
Central & S. W. Utilities, corn.(guar.). _ 75e. July 15 Holders of rec. June 30
Holders of rec. June 30
Western Union Telegraph (guar.)
2
July 15 Holders of rec. June 25a
$7 pref.(guar.)
$1.75 Aug. 15 Holders of rec. July 30
Winnipeg
Electric
(guar.)
I
Aug.
1 Holders of rec. July 10
Prior lien preferred (guar.)
$1.75 Aug. 15 Holders of rec. July 30
York Railways, corn. (guar.)
75e. July 16 July 7 to July 15
Ches.& Potom. Tel. of Balt.. pf.(qu.)-- 134 July 15 Holders of rec. June 30
Preferred (quar.)
6234e. July 31 July 16 to July 24
'Chic. R. T.. prior pref. class A (mthly.) 65c. Aug. 1 Holders of rec. July 190
Banks.
Prior preferred, class A (monthly)._ _ _ 65e. Sept. 1 Holders of rec. Aug. 16a
July 10 Holders of rec. June 30a
Prior preferred, class B (monthly)_ _ 60c. Aug. 1 Holders of rec. July 19a West New Brighton (Staten Island)- - 3
Fire Insurance.
Prior preferred, class B (monthly)_ _ _ _ 60e. Sept. 1 Holders of rec. Aug. 16a
Centinental
63
July 11 Holders of rec. June 30a
Cln.. Newp.& Coy. L.dr T., corn.(qu.)_
134 July 15 July 1 to July 15
Fidelity-Phenix Fire
$2
July 11 Holders of rec. June 30a
Preferred (guar.)
134 July 15 July 1 to July 15
Northern Insurance
5
July 29 July 21 to July 29
Cleveland Elec. HI., common (guar.) _
235 July 15 Holders of rec. July la Stuyvesant (guar.)
134 Aug. 1 July 28 to July 31
Six per cent preferred (guar.)
134 Sept. 1 Holders of rec. Aug.
Columbia Gas & Elec. Corp., corn. (qu.) $1.25 Aug. 15 Holders of rec. July 15a
20a
Miscellaneous.
Preferred (quar.)
1% Aug. 15 Holders of rec. July 20a Abitibi Power & Paper,common
(quar.). 51.25 July 20 Holders of rec. July
Commonwealth-Edison Co. (guar.).-_
2 Aug. 1 Holders of rec. July 15
Abraham St Straits. Inc., pref. (guar.)-- 1% Aug. 1 Holders of rec. July 9a
15a
Commonwealth Power,common (guar.). 62He. Aug. 1 Holders of rec. July Ha Air Reduction
(guar.)
Six per cent preferred (quar.)
134 Aug. 1 Holders of rec. July 14a Akron Rubber Reclaiming, corn.(guar.)_ $1.25 July 15 Ilolders of rec. June 300
50c. July 15 Holders of roe. July 1
Consolidated Gas, New York, pref.(qu.) $1.25 Aug. 1 Holders of rec. June 30a
Preferred
(guar.)
July 15 *Holders of rec. July 1
+$2
Consolidated Tract. of N. J. (guar.)... 2
July 15 Holders of rec. June 30a Alliance Realty (guar.)
62(4c July 18 Holders of rec. July Oa
Detroit Edisen Co.(guar.)
2
July 15 Holders of rec. June 20a Allied Chemical & Dye, common
(guar.) $1.50 Aug. 1 Holders of rec. July ha
Diamond State Telephone, corn. (guar.) *2
July 30 *Holders of rec. June 29
Allis Chalmers Mfg., corn.(quar.)
$1.50 Aug. 15 Holders of rec. Julyd23a
(Ps% preferred (guar.)
134 July 15 Holders of rec. June 20a Aluminum Manufacturers,
corn.(guar.)_ *50c. Sept. 30 *Holders of rec. Sept. 15
634% preferred (guar.)
*1% Oct. 15 *Holders of rec. Sept. 20
Common (guar.)
.50c. Dec. 31 *Hclders of rec. Dec. 15
Dominion Power & Transmission (guar.) 1;i July 15 Holders of rec. June 23a Amalgamated
Laundries. pref.
*58e. Aug. 1 *Holders of rec. July 15
East Bay Water, class A 6% Pref. (qtr.)- 134 July 15 Holders of rec. June 30a
(monthly)
(mthly.)Prefd
*58c. Sept. 1 *Holders of rec. Aug. 1
Class B 6% non-cum. pref. (guar.)... 134 July 15 Holders of rec. June
30a
Preferred (monthly)
*58c. Oct. 1 *Holders of rec. Sept. 15
Electric Bond & Share Co., pref.(guar.)_
134 Aug. 1 Holders of rec. July 12
Preferred (monthly)
*58c. Nov. 1 'Holders of rec. Oct. 15
Electric Bond & Share Securities (guar.). 25e. July 15 Holders of rec. June
18
Preferred (monthly)
*58c. Dec. 1 *IlcIders of rec. Nov. 15
El Paso Electric Co.(Del.)Preferred (monthly)
*58e. Jan 228 *Holders of rec. Dec. 15
Preferred, series A (guar.)
1% July 15 Holders of rec. July I
Preferred (monthly)
+580. Feb 1'28 *Hold. of rec. Jan. 15 '28
Preferred, series B (guar.)
134 July 15 Holders of
Preferred (monthly)
*58e. M'rl'28 *Hold. of rec. Feb. 15 28
Fairmount Park Transit, corn. (Nod)._ Sc. July 11 Holders of rec. July 1
rec. June 30a
Preferred (monthly)
*58c.
Apr 128 +Hold.efroc Mar. 1528
Preferred (quar.)
1% July 11 Holders
Preferred (monthly)
*58c. M'yl'28 'Hold. of roc. Apr. 15'28
Foshay (W. B.) Co., common (monthly) 67c. July 11 Holders of rec. June 30a
of rec. June 30
Preferred (monthly)
*58e. Jun 128 'hold. of rec. May 15'28
Seven per cent preferred (monthly)_
580. July 11 Holders of rec. June SO
Amerada Corporation. corn. (guar.).
50c. July 30 Holders of rec. July 150
Eight oer cent preferred (monthly)._
57e. July 11 Holders
Amer. Art Works, corn. & pref. (guar.)._
July 15 Holders of rec. June 30
General Pub. Serv. Corp., cony. p1.(iel.) $1.75 Aug. 1 Holders of rec. June 30
of rec. July 8a American Can,common (guar.)
50c.
Aug. 15 Holders of rec. July 29a
$6 preferred (guar.)
$1.50 Aug. 1 Holders of roe. July 8a
American Coal (guar.)
$1
Aug. 1 July 12 to Aug. 1
Havana Elec. & Utilities, 1st pref.(qu.) $1.50 Aug. 15 Holders of
rec.
July
20
American Glue, preferred (guar.)
2
Aug. 1 Holders of rec. July 16
Cumulative preference (quar.)
$1.25 Aug. 15 Holders of rec. July 20
American Home Products Corp.(quar.)_ 20c, Aug. 1 Holders of rec. July 140
International Telep. & Teleg. (guar.)_ _
134 July 15 Holders of rec.
2
July 25 Holders of rec. July 80
Internat. Utilities Corp., class A (quar.)_ 87l4c July 15 Holders of rec. June 27a American Ice, common (guar.)
July 26
Preferred (quar.)
134 July 25 Holders of rec. July 80
Kentucky Securities Corp., pref. (guar.) 194 July 15 Holders of
rec. June 20a American Mfg. Co., corn. (guar.)
134 Oct. 1 Holders of roc. Sept. 16a
Kentucky Utilities, pref. (guar.)
134 July 15 June 26 to June 30
Common
(guar.)
134 Dec. 31 Holders of rec. Dec. 160
Laurentide Power (guar.)
134 July 15 holders of rec.
30
Preferred (guar.)
1% Oct. 1 Holders of rec. Sept. 16a
Louisville Gas & Elec.(By.) 7% pf.(gu.) 194 July 15 Holders of rec. June
June 300
Preferred (guar.)
134 Dec. 31 Holders of roc. Dec. 160
Six per cent preferred (guar.)
135 July 15 Holders of rec. June 30a American Metals,
corn. (guar.)
75e. Sept. 1 Holders of rec. Aug. 20a
Manila Electric Co.(guar.)
6234c. Aug. 1 Holders of rec. June 30a
Preferred (quar.)
11.4 Sept. 1 Holders of rec. Aug. 22a
Manufacturers Light & Heat (guar.)
$1
July 15 Holders of rec. June 30a American Rolling
Mill, corn. (quar.)_ _ _ _ 50c. July 15 Holders of rec. June 30a
Massachusetts Gas Cos., corn. (quar.)__
1% Aug. 1 Holders of rec. July 150
Common (payable in common stock)_ IS
July 30 Holders of roe. July is
Massachusetts Lighting Cos.
American Seating, corn. (quar.)
25c. Oct. 1 Holders of rec. Sept. 200
6% preferred (guar.)
134 July 15 Holders of rec. June 25
American Shipbuilding, corn. (guar.)._ 2
Aug. 1 Holders of rec. July 154
8% preferred (guar.)
2
July 15 Holders of rec. June 25
Preferred (guar.)
134 Aug. 1 Holders of rec. July 150
Mexican Utilities, preferred
$3.50 July 15 Holders of res. June 30
Amer. Smelting & Refining, corn.(quar.) 2
Aug. 1 Holders of rec. July 8a
Middle West Utilities, pref.(guar.)
134 July 15 Holders of rec. June 30a
Preferred (guar.)
134 Sept. 1 Holders of rec. Aug. 5a
$6 preferred (guar.)
$1.50 July 15 Holders of rec. June 30a American Steel
Foundries, corn.(guar.). 75c. July 15 Holders of rec. July la
Milwaukee El. By. & Lt..6% pref. WO
134 Aug. 1 Holders of rec. July 20a American
Type
Founders, corn. (quar.)_
2
July 15 Holders of rec. July 5a
Missouri Gas & Elec.. prior lien (quar.)_ $1.75 July 15 Holders of rec.
Preferred (guar.)
134 July 15 Holders of rec. July ba
Montreal L., H.& P. Consolidated (qu.) 50c. July 30 Holders of rec. June 30
June 30
Amer. Vitrified Products. corn. (guar.). 50c. July 15 Holders of rec. July 5a
Montreal Telegraph (guar.)
r80c. July 15 Holders of rec. June 30a
Preferred (guar.)
1% Aug. 1 Holders of rec. July 20
Montreal Tramways (guar.)
234 July 15 Holders of rec. July 70 Anaconda Copper
Mining (guar.)
750. Aug. 22 Holders of rec. July 16a
Mountain States Power. pref.(quar.) _ _ _
194 July 20 Holders of rec. June 30
Arctic Dairy Products, stock dividend.. e25
July 15 Holders of rec. July 1
Mountain States Telep. & Teleg. (au.). *2
July 15 *Holders of rec. June 30
Asbestos Corporation. Ltd., pref.(guar.) 1% July 15 Holders of rec. June 300
National Fuel Gas, new stk. (qu.)(No.1) 25e. July 15 Holders of rec. June
Nevada-Calif. Elec. Corp., pref. (guar.) 134 Aug. 1 Holders of rec. June 30a Associated Dry Goods, corn.(guar.)._ _ 63e. Aug. 1 Holders of roe. July 9a
30
First preferred (guar.)
134 Sept. 1 Holders of rec. Aug. 13
New England Power Assoc., corn (cu.)- 3734c July 15 Holders of rec. June 300
Second preferred (guar.)
134 Sept. 1 Holders of rec. Aug. 13
New England Public Serv., ad). Pf. (111.) *$1.50 July 15 *Holders of rec. June 30
Associated Industrials, pref. (guar.)
2
July 15 Holders of rec. July 15a
$7 preferred (guar.)
$1.75 July 15 Holders of rec. June 30
Atlantic Refining, pref. (guar.)
1% Aug. 1 Holders of rec. July 15
New York Telephone, pref.(quar.)
134 July 15 Holders of rec. June 20a Atlas Plywood (guar.)
$1
July 15 Holders of rec. July la
Niagara Falls Power. pref.(guar.)
43He. July 15 Holders of rec. Juno 30a Atlas Powder, preferred
134 Aug. 1 Holders of rec. July 20a
(guar.)
North Boston Ltg. Prop., corn.(guar.)
$1.12 July 15 Holders of rec. July 2a Babcock & Wilcox
Co.
(guar.)
Oct. 1 Holders of rec. Sept. 20a
194
Common (extra)
50c. July 15 Holders of rec. July 2a
Quarterly
11.4 Jan 128 Holders of rec. Dec. 200
Preferred (guar.)
134 July 15 Holders of rec. July 2a
Quarterly
134 Apr 128 Hold. rec. Mar. 20'28a
Northern Indiana Public ServiceBamberger (L.) & Co., pref.(guar.)._
194 Sept. 1 Holders of Coo. Aug. 130
Six per cent preferred (guar.)
11.4 July 14 Holders of rec. June 30a
Preferred (guar.)
1% Dec. 1 Holders of rec. Nov. 12a
Seven per cent preferred (guar.)
1% July 14 Holders of rec. June 30a 13ancitaly Corporation
*Holders of rec. July 29
Northern Ontario Lt. & Pow., com.(gu.) 1
July 11 Holders of rec. June 30a Bancroft (Joseph) & (stock dividend). '&10
Sons
Co.,
pf. (qu.)_
134 July 30 Holders of roe. July 15
Preferred
July 25 Holders of rec. Juno 300 Bankers Capital Corp.,
3
corn
$4
July
Holders of rec. June 30
15
Ncrthern States Pow., corn., cl. A (au.)- 2
Aug. I Holders of rec. June 3(1
Preferred (ouar.)
$2
July 15 Holders of roc. Juno 30
6% preferred (guar.)
134 July 20 Holders of rec. Juno 30
Preferred (guar.)
$2
Oct. 15 Holders of roe. Sept. 30
7% preferred (guar.)
1% July 20 Holders of rec. June 3(1
Preferred (guar.)
Jan16'28 Holders of rec. Dec. 31
$2
Northwestern Bell Telep., pref. (quar.)_
1% July 15 Holders of rec. June 20a Barnhart Brothers &
SpindlerOhio River Edison. 6% pref. (quar.)_. 134 Sept. 1 Holders of rec. Aug. 1.;
First and second preferred (guar.).
1%
Aug. 1 Holders of me. July 230
preferred
6.6%
$1.65 Sept. 1 Holders of rec. Aug 15
(quarterly)
Barnsdall Corp., class A and B (guar.)._ 62340. July 15 Holders of rec. June 24a
7% Preferred (quarterly)
1% Sept. 1 Holders of rec. Aug. 15
Ilayuk Cigars, Inc., first pref. (guar.)._
134 July 15 Holders of rec. June 300
6% preferred (monthly)
500. Aug. 1 Holders of rec. July 15
7% second preferred (guar.)
194 July 15 Holders of rec. June 300
6% Preferred (monthly)
500. Sept. 1 Holders of rec. Aug. 15
8% second preferred (guar.)
July 15 Holders of rec. Juno 300
2
6.6% preferred (monthly)
550. Aug. 1 Holders of rec. July 15
Beech-Nut Packing, corn. (guar.)
July 9 Holders of rec. June 25a
60e.
6.6% preferred (monthly)
65e. Sept. I Holders of rec. Aug. 15
Preferred (guar.)
134 July 15 Holders of rec. July la
Ottawa Montreal Power, pref. (guar.). _
1% July 15 Holders of rec. Juno 30
Canadian Paper, corn.(guar.) -- Belgo
13.4 July 12 Holders of rec. Juno 30
Pacific Gas & Elec. Co., Cotn• (quar.)_ .50e. July 15 Holders of rec. June 30a
Berles Corporation. preferred
334 July 15 Holders of rec. June 30
Pacific Telep.& Teleg., pref.(guar.)
134 July 15 Holders of rec. June 30a Bigelow-Hartford Carpet,
--- corn.& pf.(qu) *$1.50 Aug. 1 *Holders of rec. July 8
Penn-Ohlo Edison Co., cont.(guar.). -- 25c. Aug. 1 Holders of rec. July 15
flaw-Knox Co., common (guar.)
75e. Aug. 1 Holders of rec. July 21
Penn-Ohio Securities Corp., corn. (guar) 18e. Aug. 2 Holders of rec. July 15
First preferred (quar.)
1% Aug. 1 Holders of rec. July 21
Penn.-Ohio Pow. & Lt.. 8% pf.
Aug. 2 Holders of rec. July 20
(qu.)-- - 2
Bloch Bros. Tobacco, corn. (guar.)
3734c. Aug. 15 Holders of rec. Aug. 10
7% Preferred (guar.)
131 Aug. 1 Holders of rec. July 20
Common (guar.)
Nov. 15 Holders of rec. Nov. 10
3734e.
7.2% preferred (monthly)
60c. Aug. 1 Holders of rec. July 20
Preferred (guar.)
134 Sept. 30 Holders of rec. Sept.25
6.6% preferred (monthly)
55e. Aug. 1 Holders of rec. July 20
Preferred (guar.)
31 Holders of rec. Dec. 26
Dec.
134
Peoples Gas Light & Coke (guar.)
July 18 Holders of rec. July 5a Bloomingdale Brothers, pref. (guar.)
2
- 134 Aug. I Holders of ree. July 200
Philadelphia & Camden Ferry (quar.) .$2
July 11 *Holders of rec. June 22
Bon Aml Co., corn."A" (guar.)
July 30 Holders of rec. July 15a
$1
Philadelphia Company, cora.
30
July
$I
Holders
of
rec. July la Boss Manufacturing, corn. (guar.)
(guar.).
234 Aug. 15 Holders of rec. July 30
Common (1-120 shares of corn. stock).
July 30 Holders of rec. July 1
Common (extra)
Aug. 15 Holders of rec. July 30
5% preferred
$1.25 Sept. 1 Holders of rec. Aug. 106
Preferred (guar.)
11.4 Aug. 15 Holders of rec. July 30
Philadelphia Rap. Transit, com.
Aug. I Holders of rec. July 150 Brewers & Distillers (Canada), corn._
$1
July 15 Holders of rec. June 30
_
Philadelphia & Western By., pf.(guar.).
July 15 Holders of rec. June 300 Briggs Manufacturing (guar.)
(guar.).
75c. July 25 Holders of rec. July 110
Power Corporation of Canada, pref.(qu.) 134
134 July 15 fielders of rec. June 30
British Columbia Fishing, corn. (guar.). $1.25 Sept. 10 Holders of
Pub. Sere. of N. Ill., corn., no par (an.). +$2
rec. Aug. 31
Aug. 1 *Holders of rec. July 15
Common (guar.)
$1.25 Dec. 10 Holders of rec. Nov. 30
Common ($100 par) (guar.)
Aug. 1 *Holders of rec. July 15
*$2
Common (guar.)
$1.25 3-10-28 Holders of rec. Feb.28'28
Seven per cent preferred (guar.)
•1,4 Aug. I 'holders of rec. July 15
Preferred (guar.)
Sept. 10 Holders of rec. Aug. 31
Six per cent preferred (guar.)
•134 Aug. 1 *Holders of rec. July 15
Preferred (guar.)
1% Dec. 10 Holders of rec. Nov. 30
Puget Sound Pow.& Lt., prior pf.(qu.) _
194 July 15 Holders of rec. June 20a
Preferred (guar.)
3-10-'28 Holders of rec. Feb.28'28
1%
Preferred (guar.)
134 July 15 Holders of rec. June 20
Brompton Pulp & Paper (guar.)
500. July 15 Holders of rec. Juno 30
Quebec Power (guar.)
134
15 Holders of rec. June 30
Burns Brothers, prior pref. (guar.)
194 Aug. 1 Holders of rec. July 150
Radio Corp. of Amer., pref. A (quar.)_ _ 8734e July
Oct. 1 Holders of rec. Sept
Bush Terminal Co.(qu.) (in corn. stock) f2
July 15 Holders of rec. June 30a
Elan Diego Consol. Gas & Elec.. Pf.(qu.) 134 July 15 Holders of rec. June 1
Preferred
30a
July 15 holders of rec. June 30a
3
Securities Management Corp.,c1. A (an.) 1% July 15 Holders of roe.
Debenture preferred (guar.)
July 1
1% July 15 Holders of rec. June 300
Shawinigan Water & Power (guar.)
50e. July 11 Holders of rec. June 24
Byers (A. M.) Co., pref. (guar.)
134 Aug. 1 Holders of rec. July 15a
South Pittsburgh Water, corn. (guar.)
134 July 20 Holders of rec. July 9a Canada Cement (guar.)
133 July 16 Holders of rec. June 30
Preferred
234 Aug. 19 Holders of rec. Aug. 50 Canada Dry Ginger Ale (guar.)
750, JUIY 15 Holders of rec. July la
Name of Company.
131
134
Name of Company.
215
THE CHRONICLE
JULY 91927.]
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Company.
Per
When
Cent. Payable.
Books Closed
Days Inclusive.
Miscellaneous (Continued).
Miscellaneous (Continued).
Holly Sugar Corporation. pref. (luar.)-- 154 Aug. 1 Holders of rec. July lb
July 9 Holders of rec. June'25
Canadian Car & Foundry, pref. (quar.)_
to Aug. 1
135 Aug. 1 July 21
Hood Rubber Co., 755% pref. (quar.) _
Canadian Fairbanks Morse, pref. (quar.) 151 July 15 Holders of rec. June 30
151 Sept. 1 Aug. 21 to Sept. 1
Hood Rubber Products. pref. (quar.)_ _ _
Canadian Industrial Alcohol (quar.)---- 32e. July 15 Holders of rec. June 30
rec.
Aug. 1
Holders
of
135
(guar.)
Aug.
20
common
Home
Service,
135 Sept.30 Sept. 21 to Oct. 4
Canfield Oil, corn. (quar.)
2
July 20 Holders of rec. June 30
First & second preferred (quar.)
145 Dec. 31 Dec. 21 to Jan. 4
Common (guar.)
11
July
rec.
53754c
Aug.
1
(quar.)
*Holders
of
Co.
(N.
Y.)
Horn
dr
Hardart
Oct.
4
Sept.30
to
151
Sept.
21
Preferred (quar.)
*12550 Aug. 1 *Holders of rec. July 11
Extra
Dec. 31 Dec. 21 to Jan. 4
Preferred (quar.)
141 July 30 Holders of rec. July lba Horn & Hardart Co. (Phila.) (quar.)_ _ _ .3755c Aug. 1 *Holders of rec. July 11
Cartier. Inc., preferred (guar.)
*25c. Aug. 1 *Holders of rec. July 11
Extra
255 Aug. 15 Holders of rec. Aug. 1
Casey-Hedges Co.. corn. (quar.)
87550 Sept. 1 Holders of rec. Aug. lba
50e. July 10 Holders of rec. June 25a Household Products (quar.)
Central Alloy Steel. corn. (quar.)
$1
July 15 Holders of rec. July la
Howe Sound Co.(quar.)
*154 July 25 *Holders of rec. July 15
Chicago Pneumatic Tool (quar.)
350. Aug. 1 Holders of rec. July lba
25c. Aug. 1 Holders of roe. July 15a Hupp Motor Car. common (guar.)
Chic. Wilm. dr Franklin Coal, corn
60c, July 15 July 3 to July 15
$1.50 Aug. 1 Holders of rec. July 150 (w)Illinois Brick (quar.)
Preferred (quar.)
60c. Oct. 15 Oct. 5 to Oct. 16
(w)Quarterly
33 1-3c Aug. 1 Holders of rec. July 20a
Chicago Yellow Cab Co. (monthly)_
250. Aug. 1 Holders of rec. July I8a
331-3e Sept. 1 Holders of rec. Aug. 19a Independent Oil & Gas
Monthly
Aug. 15 Holders of rec. July 22
81
Oct. 1 Holders of roe. Aug. 260 Indiana Pipe Line
Childs Co..com.(pay.in nopar corn.stk.). fl
Aug. 15 Holders of rec. July 22
$1
Extra
Dec. 30 Holders of rec. Nov.250
Common (payable in no par corn. stk.) fl
Oct. 10 Holders of rec. Septd22a
$1
Internat. Business Machines (quar.)
Christie Brown dr Co., Ltd., corn. (qu.)_ *30c. Aug. 1 *Holders of rec. July 15
135
July
15 Holders of rec. June 25a
(qu.)_
common
Harvester,
International
Holders
of
rec.
July
20
Aug.
1
Preferred (Qum.)
July 25 Holders of rec. June 254
f2
Common (payable in common stock)
Sept.30 Holders of rec. Sept. 15a
Chrysler Corporation, pref. A (quar.)_
$2
Jan3'28 Holders of rec. Dec. 15a Internat. Match, corn.(quar.)(No. 1). 800. July 15 Holders of rec. June 250
Preferred A (quar.)
$2
80e. July 15 ,Holders of rec. June 254
Participating preferred (guar.)
Cities Service, common (monthly)
55 Aug. I Holders of rec. July 15
60c. Aug. 15 Holders of rec. Aug. la
International Paper, corn. (quar.)
Common (payable in common stock)_ f34 Aug. 1 Holders of rec. July 15
131 July 15 Holders of rec. July la
7% pref. (quar.)
54 Aug. 1 Holders of rec. July 15
Preferred and preferred BB (monthly)
155 July 15 Holders of rec. July la
Six per cent preferred (guar.)
5c. Aug. 1 Holders of rec. July 15
Preferred B (monthly)
July 15 Holders of rec. July 8
50e. Sept. 1 Holders of rec. Aug. 10a Interstate Iron & Steel, common (quar.) El
City Ice dr Fuel (quar.)
Oct. 15 Holders of rec. Oct. 8
$1
Common (quar.)
50c. Sept. 15 Holders of rec. Sept. 50
Cleveland Stone (quar.)
El
Jan16'28 Holders of rec. Jan. 9'28
Common (quar.)
Aug. 1 Holders of rec. July 12a
Collins dr Aikman Co.. corn. (quar.)- - $1
250. Aug. 15 Holders of rec. Aug. la
IntertyPe Corporation, corn.(quar.)
514 July 30 *Holders of rec. July 20
Conlon Corporation (quar.)
25e, Aug. 15 Holders of rec. Aug. la
Common(extra)
135 July lb Holders of rec. June 300
Consolidated Car-Heating (quar.)
57e. July 15 Holders of rec. July la
Johns-Manville. Inc., corn.(quar.)
$1.2 July 15 Holders of roe. June 30
Consolidated Mining & Smelting
62340 July 15 Holders of rec. June 30a
Kawneer Co.(quar.)
July 15 Holders of rec. June 30
$5
Bonus
Aug. 1 Holders of rec. July 15
81
Kayser (Julius) & Co., corn. (quar.)
250. July 25 Holders of rec. July 15
Consolidated Royalty
(quar-)
Kellogg Switchboard & Supp.. com.(qu.) 3254c July 30 Holders of rec. July 96
•334 Aug. 20 *Holders of rec. Aug. 1
Consumers Co.. preferred
151
July 30 Holders of rec. July 9.5
Preferred
(quar.)
Continental Motors Corp.(quar.)
200. July 30 Holders of rec. July 15a
Cooper Corporation, corn. (quay.)
$1
July 15 Holders of rec. July la Kelsey-Hayes Wheel, pref. (qu.)(No. 1) 81.75 Aug. 1 Holders of rec. July 21s
15 *Holders of rec. July 5
July
*81
(quar.)
corn.
Keystone
Steel
&
Wire,
20
20
July
Holders
of
Corn Products Refining, corn. (quar.)
500.
rec. July
8151 July 15 *Holders of rec. July 5
Preferred (quar.)
25c. July 20 Holders of rec. July 20
Common (extra)
151 Sept. 10 Holders of rec. Aug. 31
111 July 15 Holders of rec. July 20 Kirby Lumber, common (quar.)
Preferred (quar.)
151 Dee. 10 Holders of rec. Nov.30
Common (quar.)
Oct.
Holders of rec. Sept.28a
Cosgrove-Meehan Coal, pref. (quar.)..
Aug. 1 Holders of rec. July 15
31
Dec. 2 Holders of rec. Dec. 190 Knox Hat common
Preferred (quar.)
Aug. 1 Holders of rec. July 15
31
participating
Class
A
10
to
July
July
9
July
1
Creamery Package Mfg., corn.(quar.)
500.
Holders of rec. Sept. 15
Oct.
81.75
Prior pref.(quar.)
July 1 to July 10
134 July
Preferred (attar.)
Holders of rec. July 15
$3.50 Aug.
Second preferred
Cresson Consol. Gold M. dr Mill. (qu.). 10e. July 10 Holders of rec. June 306
Holders of rec. June 30
15
50e.
July
Ontario
Brewing
Co
Lake
150
1;5 July 3 Holders of rec. July
Crucible Steel, corn. (quar.)
*155 Aug. 31 *Holders of rec. Aug. 19
July 1 Holders of rec. July 50 Lanston Monotype Machine (quar.)
Cudahy Packing, corn. (quar.)
$I
31
Aug. 31 Holders of rec. July 300
Lehigh Coal dr Navigation (quar.)
Curtiss Aeroplane & Motor, preferred_ _ 334 Sept. 1 Holders of rec. Sept. 1
250. Aug. 31 Holders of rec. July 30a
Extra
Cushman's Sons, Inc.•$i.25 Aug. 1 *Holders of rec. July 10
Holders of rec. Aug. 15a Lehigh Valley Coal
Common (payable in $8 pref. stock)._ i$1.50 Sept.
500. July 2 Holders of rec. June 30a
Refunding
(quar.)
Lion
011
July
lba
Holders
of
rec.
250. Aug.
Davega, Inc. (quar.)
Holders of rec. July 20a
90c. Aug.
Holders of rec. July lba Liquid Carbonic Co.(quar.)
250. Aug.
Extra
Holders of rec. Julyd16a
150. Aug.
Loew's Boston Theatres (quar.)
134 July 1 July 1 to July 15
Detroit Motor Bus (quar.)
Loew's
London
Theatres
(Canada)
31a
Sept.' Holders of roe. Aug.
2
Diamond Match ((Mar.)
25e, July IS Holders of rec. June 306
Common (annual)
July 1 Holders of rec. June 27a
Dodge Brothers, Inc., pref. (quar.)
Sc. July 1 Holders of rec. June 306
Common (extra)
25e. July 2 Holders of rec. June 30
Dome Mines, Ltd. (quar.)
334 July 1 Holders of rec. June 306
Preferred
July 1 Holders of rec. June 30
Dominion Textile. pref. (quar.)
July 15 Holders at rec. July la Loose-Wiles BiscuitDunhill International. corn. (quar.)_ _ _ 31
New no par common (quar.)(No. 1).._ 40e. Aug. 1 Holders of rec. July lba
Oct. 15 Holders of rec. Oct. la
31
Common (quar.)
151 Aug. 1 Holders of rec. July 18a
Second preferred (quar.)
Jan. 15 Holders of rec. Jan.1'28a
$1
Common (quar.)
2
Aug. 1 Holders of roe. July 154
Lord
& Taylor. second pref. (quar.)15
rec.
Apr.1'28a
Apr.
Holders
of
$1
Common (quar.)
Aug. 15 *Holders of rec. Aug. 1
5135
pref.
(quar.)Refining,
Louisiana
011
Du Pont(E. I.) de Nemours dc Co.
81.50 July 6 Holders of rec. June la MacAndrews dr Forbes, new corn.(qu.). 65c. July 15 Holders of rec. June 306
Common (extra)
135 July 15 Holders of rec. June 30a
Preferred (quar.)
154 July 25 Holders of rec. July 9a
Debenture stock (quar.)
81.25 Aug. 15 Holders of rec. July 290
40e. Sept. 1 Holders of rec. Aug. 15a Macy (R. H.) & Co., (quar.)
Eagle-Plcher Lead, com. (quar.)
July 15 Holders of roe. July ba
25e.
Co.
(quar)
Garden
Square
Madison
15a
Dec.
I
rec.
Nov.
Holders
of
40e.
Common (quar.)
25c. Oct. 15 Holders of rec. Oct. 5
Quarterly
155 July 15 Holders of rec. June 30a
Preferred (quar.)
750. July 15 Holders of rec. June 30a
1% Oct. 15 Holders of rec. Sept.30a Magma Copper Co. (quar.)
Preferred (quar.)
•250. July 15 *Holders of rec. June 30
Magnin (I.) & Co., coin. (quar.)
155 Jan1528 Holders of rec. Dec. 31
Preferred (quar.)
154 July 11 Holders of rec. June 30a
Early & Daniels, common (quar.)
6255c. Oct. 1 Holders of rec. Sept.20a Manufactured Rubber, pref.(quar.)
Milling.
pref.
((Mar.)
154 July 18 Holders of rec. July 3
Maple
Leaf
200
1
Holders
of
rec.
Sept.
Oct.
Common (extra)
25e.
July 15 Holders of rec. June 30
355
Common (quar.)
62550. Jan 128 Holders of rec. Dec. 20a Marcus Loew's Theatres(Canada).Pref25e. July 9 Holders of rec. June 20
Common (extra)
25c. Jan 1'28 Holders of rec. Dec. 20a Margay 011 (quar.)
Sept. I Holders of rec. Aug. lba
Si
(quar.)
corn.
Department
Stores,
May
P referred (quay.)
Holders of rec. Sept.20a
$1.75 Oct.
50c. Aug. 1 Holders of rec. July 20
Preferred (quar.)
81.75 Jan 12 Holders of rec. Dec. 20a McCall Corporation (quar.)
Sept. I Aug. 16 to Aug. 31
20e.
(quar.)
_
corn.
Brothers,
Ltd.,
McColl
Eastern Bankers Corp., pref. (quar.)Holders
of
rec.
June
30
81.75 Aug. I
134 Sept. 1 Aug. 16 to Aug. 31
Preferred (guar.)
Preferred (quar.)
31.75 Nov. 1 Holders of rec. Sept. 30
_ 151 Aug. 1 Holders of rec. July 200
McCrory Stores Corp., pref.(quar.)
Preferred (quar.)
$1.75 Feb. 1 Holders of rec. Dec. 31
151 Nov. 1 Holders of rec. Oct. 200
Preferred (quar.)
Eastern Steamship, pref. (quar.)
87550. July 1 Holders of rec. July 6a
McLellan Stores, corn. A and B (quar.) 25e. Oct. 1 Holders of rec. Sept. 20
Eastern Theatres, Ltd.(Toronto), pref.
3;5 July 3 Holders of rec. June 30
25e. Jan2'28 Holders of rec. Dec. 20
Common A and B (quar)
Eaton Axle dr Spring (quar.)
Holders of rec. July 150
50c. Aug.
151 July 15 Holders of rec. July 1
Economy Grocery Stores (quar.)
250. July 1 Holders of rec. July la Merch. dr Mfrs. Co., pr. pref. (quar.) _
July 20 Holders of rec. June 300
Mexican Petroleum Corp., corn. (quar.) 33
Electric Hose dr Rubber (quay.)
*155 July 1 *Holders of rec. July 8
July 20 Holders of rec. June 30a
82
(guar.)
July
1
Preferred
Extra
554
*Holders of rec. July 8
•37350 Aug. 15 *Holders of roe. Aug. 1
Elgin National Watch (quar.)
6254e Aug.
Holders of rec. July 150 Miami Copper Co. (quar.)
75e. Aug. 1 Holders of rec. July la
Ely-Walker Dry Goods, 1st preferred_ _ _ 355 July 1 July 4 to
Mid-Continental Petroleum (quar.)
July 14
50c. July 25 Holders of rec. July 50
Second preferred
July 1 July 4 to July 14
Miller Rubber, common (quar.)
3
July 1 Holders of rec. June 300 Mining Corp. of Canada, Ltd. (interim) 1234e July 15 June 29 to July 14
Empire Bond dc Mtge., pref. Mari---2 Aug. 1 Holders of rec. July 20
$1
Aug.
Eureka Pipe Line(quay.)
Missouri-Illinois Stores, pref. (quer.)_ Holders of rec. July 15
15 Holders of rec. Aug. 40
Aug.51
Eureka Vacuum CleanerMontgomery Ward dr Co., corn.(quar.)_
81.75 Oct. 1 Holders of rec. Sept. 20a
Common (payable in common stock)- fb
Aug. 1 Holders of rec. July 20a
Class A (quar.)
15 Holders of rec. July la
July
2
Fair (The), common (monthly)
1
20c. Aug.
Holders of rec. July 21a Motion Picture Capital Corp., pref.(qu.)
Aug. 15 Holders of rec. July 30
2
Preferred (quar.)
151 Aug. 1 Holders of rec. July 21a Motor Wheel Corp.. pref. (quar.)
*135 July 15 *Holders of rec. July 8
Federal Terra Cotta (qar.)
July 15 July 6 to July 15
Mount Royal Hotel, pref. (quar.)
2
20. July 15 Holders of rec. June 306
Fifth Avenue Bus Securities (quar.) -- 16e. July 16 Holders of rec. July 20 Mountaln dr Gulf 011 (quar.)
lc. July 15 Holders of rec. June 30a
Firestone Tire dr Rubber, corn.(guar.)._ 31.50 July 20 Holders of roe. July 10a
Extra
Six per cent preferred (quar.)
55 July 15 Holders of rec. July la Nash (A.) Co. (quar.)
•$2.50 July 15 *Holders of rec. June 30
Aug. 1 Holders of rec. July 15
Seven per cent preferred (quar.)
151 Aug. 15 Holders of rec. Aug. la National American Co. (quar.)
$1
Aug. 1 Holders of rec. July 15a National Hellas Hess Co., pref.(quar.)-- 154 Sept. 1 Holders of rec. Aug. 190
Fisk Rubber, first pref. (quar.)
Sept. 1 Holders of rec. Aug. 15a National Biscuit, corn. (quar.)
Second preferred (quar.)
81.25 July 15 Holders of rec. June 30a
Flour Mills of Amer., Inc.,$8 pref.(ext.) 31
July 15 Holders of rec. July 2
$1.25 Oct. 15 Holders of rec. Sept. 306
Common (quar.)
151 Aug. 31 Holders of rec. Aug. 17a
Foote Bros. Gear & Mach., corn.(qu.)-- 30e. Oct. 1 Sept. 21 to Sept. 30
Preferred (quar.)
300. Jan 1'28 Dee. 21 to Dec. 30
Aug. 1 Holders of rec. July 20
Common (quar.)
*2
National Carbon, pref. (quar.)
Oct. 1 Sept.21 to Sept. 30
National Cash Register, class A (quar.). 75e. July 15 Holders of rec. June 30a
Preferred (quart)
1'2
151
Jan
Dee. 21 to Dec. 30
Preferred (quar.)
National Firenroofing. prof. (quar.)- - 154 July 15 Holders of rec. July 1
31 July 15 Holders of rec. June 300 National Lead el. B corn. (qu.)(No. 1)_
155 Aug. 1 Holders of rec. July 80
Fox Film Corp., class A & B (quar.)-25o. Oct.
Holders of rec. Sept. 15
National Licorice,corn
255 July 13 Holders of rec. June 15
Formica Insulation (quar.)
100. Oct.
Holders of rec. Sept. 15
Nelsner Brothers, pref. (guar.)
151 Aug. 1 Holders of rec. July 154
Extra
250. Jan 1'28 Holders of rec. Dec. 15
Nelson (Herman) Corp.(quar.)
30c. Oct. 1 Holders of rec. Sept. 4
Quarterly
Jan
10c.
1'28
Oct. 1 Holders of rec. Sept. 19
Stock dividend
Holders of rec. Dee. 15
el
Extra
Aug. 1 Holders of rec. July 150 New Bradford Oil (quar.)
$1
1250 July 15 Holders of rec. June 30a
Freeport Texas Co.(quar.)
250. Aug. 1 Holders of rec. July 15a New Jersey Zinc (extra)
July 9 Holders of rec. June 20a
2
Extra
July 29 Holders of rec. June 170 New York Air Brake. emu.(quar-)
31
75e. Aug. 1 Holders of rec. July 70
General Electric(guar.)
July 29 Holders of rec. June 170 New York Dock. preferred
El
Extra
255 July 15 Holders of rec. July 56
150. July 29 Holders of rec. June 170 New York Transportation (guar.)
50e. July 15 Holders of rec. July la
Special stock (quar.)
11§ Aug. 1 Holders of rec. July 50 Newmont Mining Corp.((Mar.)
General Motors Corp. 6% pref. (quar.)_
$1 July 15 Holders of rec. June 30
155 Aug. 1 Holders of rec. July 5a Nipissing Mines Co., Ltd.(quar.)
755c July 20 Holders of rec. June 300
Six per cent debenture stock (quar.)
July 15 Holders of rec. June 30
Seven per cent debenture stock (quar.) 1;1 Aug. 1 Holders of rec July ba Ohio Brass, class B (guar.)
Si
50o. July1 15 Holders of rec. July ba
135 July 15 Holders of rec. June 30
Preferred (quar.)
General Outdoor Advertising (quar.)151 Aug. 1 Holders of rec. July 120
750. July 15 Holders of rec. July 70 011 Well Supply. pref. (quar.)
General Refractories (quar.)
*75e. JulY130 *Holders of rec. July 15
$1.50 July 15 Holders of roe. June 300
Gilchrist Co. (quar.)
Otis Elevator, corn. (quar.)
134 July 15 Holders of rec. June 30a
151 Aug. 1 Holders of rec. July 15a
Preferred (quar.)
Gobel (Adolf) Inc., pref. (quar.)
154 Oct. 15 Holders of rec. Sept.306
Gorham Manufacturing. 1st pref. MO - 151 Sept. 1 Holders of rec. Aug. 15
Preferred (quar.)
155 Jan15'28 Holders of rec. Dec. 316
151 Aug. 1 Holders of roe. July 15
Preferred (quar.)
Gotham Silk Hosiery, mt.(quar.)
131 Oct. 1 Holders of rut. Sept.24
Overman Cushion Tire, pref. (guar.)._
Guenther Publishing Co.
5 Aug. 20 Holders of rec. Jan. 20a Pacific Coast Co.. first pref.(guar.)._ 131 Aug. 1 Holders of rec. July 236
Preferred (quar.)
5 Nov.20 Holders of roe. Jan. 200 Package Machinery, 1st pref. (guar.)-- 151 Aug. 1 Holders of rec. July 20
Preferred (quar.)
151 Nov. 1 Holders of rec. Oct. 206
First preferred (quar.)
154 Oct. 1 Holders of rec. Sept. 150
Gulf States Steel, corn.(quar.)
20e. July 30 Holders of rec. July 154
134 Jan3'28 Holders of rec. Dec. 15a Packard Motor Car, monthly
First preferred (quar.)
31
20e.
July
July
July
31
Monthly
24
to
Aug. 30 Holders of roe. Aug. 15a
154
Halle Bros.. pref. (quar.)
Pan-American Petroleum & Transport'n
60. Aug. 15 Holders of rec. Aug. 1
Hamilton Bank Note
31.50 July 20 Holders of rec. June 30a
Common and Common B (quar.)
Harbison-Walker Refrac.. pref. (quer.). 1% July 20 Holders of rec. July 9a
Hart. Schaffner & Marx. Inc., cont.(qu.) *11.50 Aug. 31 *Holders of rec. Aug. 160 Paramount Famous Lasky Corn.July 14 Holders of rec. July la
Sept.20 Holders of rec. July 280
f$2
Common (extra)
Hathaway Baking, class A, pref. (quar.) $2
2
Aug. 1 Holders of rec. July 156
Preferred (quar.)
Hibbard. Spencer, Bartlett Co.(mthly.)- 300. July 29 Holders of rec. July 22
82
Aug. 1 Holders of rec. July I54
Philadelphia Insulated Wire
300. Aug. 26 Holders of rec. Aug. 19
Monthly
Paths Exchange. Inc., pref. A (quar.)
31
Aug. 1 Holders of rec. July lla
300. Sent. 30 Holders of rec. Sept 23
Monthly
(quar.)
81
Aug.
15 Holders of rec. Aug. 5
July
15
30
Penmans.
corn.
Holders of rec. June
Limited,
• 154
HIllerest Collieries, corn. (quar.)
134 Aug. 1 Holders of rec. July 21
Preferred (quar.)
151 July 15 Holders of rec. June 30
Preferred (quar.)
Aug.
1 Holders of rec. July lba
755c
Penn
July
Holders
of
June
29
Traffic
15
rec.
10e.
Hollinger Consolidated Gold Mines
•50. July 15 *Holders of rec. July 1
$1.2 July 15 Holders of rec. June 300
Pennsylvania Salt Mfg.(quar-)
Holly Development (quar.)
151
151
151
ail
151
151
151
151
151
151
216
THE CHRONICLE
[VoL. 125.
Per
When
Cent. Payable.
Books Closed
Weekly Returns of New York City Clearing House
Days Inclusive.
Banks and Trust Companies.
Miscellaneous (Concluded).
Phillips-Jones Corp.. pref.(quar.)
134 Aug. 1 Holders of rec. July 20s
The following shows 'the condition of the New York City
Plerce,Butler&Plerce,com.,825 par(qu.)- 50e. July 15 Holders of rec. July
5
Common ($100 Par) (quar.)
2
July 15 Holders of rec. July 5
Clearing House members for the week ending July 2. The
Eight per cent preferred (quar.)
2
Aug. 1 Holders of rec. July 20
Seven per cent preferred (quar.)
figures for the separate banks are the averages of the daily
1.34 Aug. 1 Holders of rec. July 20
Pillsbury Flour Mills, corn.(No. 1)
40e. Sept. 1
results. In the case of the grand totals, we also show the
Pittsb. Screw & Bolt,com.(qu.)(No. 1). 500. July 12 Holders of
rec. July 1
Plymouth Cordage (quar.)
.134 July 20 *Holders of rec. July 1
actual figures of condition at the end of the week.
Porto Rican Am.Tob., Cl. A (qu.)(No.1) $1.75 July 11 Holders
of rec. June 206
Prairie Pipe Line (quar.)
234 July 30 Holders of roe. June 30a
Pressed Metals of America. corn. (quar.) 75e. July 15 Holders
NEW YORK WEEKLY CLEARING HOUSE RETURNS.
of rec. June 25a
Procter & Gamble,8% pref.(quar.)
July 15 Holders of rec. June 25a
2
(Stated in thousands of dollars-that is, three ciphers (0001 omitted.)
Pro-phy-lae-tic-Brush (quar.)
50o. July 15 Holders of rec. June 30a
Extra
$1
Aug. 1 Holders of rec. July 20a
Prudence Plan of N. Y., Inc., pref.(qu.) 2
July 15 Holders of rec. June 30
New
Pullman Company (quar.)
2
Aug. 15 Holders of rec. July 30
Capital Profits Loans,
Reservel
Quaker Oats,common (quar.)
31
July 15 Holders of rec. July la
Week Ending
Discount, Cash
withj Net
Time Bank
Preferred (quar.)
134 Aug. 31 Holders of rec. Aug. la
July 2 1927. Nat'l, 1 Mar.23 Investin
Legal Demand
De- CircaQ. R.S. Music (monthly)
150. July 15 Holders of rec. July la
State, Mar.2 meats, Vault. Depos Deposits. posits. lotion.
Realty Associates, 1st preferred
3
July 15 Holders of rec. July 5
(000 omitted.) Tr.Cos.Mar.2
(.4c.
tortes.
Remington Noiseless Typewr.. pf.(qu.)- 134 July 15 Holders
of
rec.
la
July
Rice-Stix Dry Goods, corn. (quar.)
3734c. Aug. 1 Holders of rec. July 15
Members of Fed. Res.Bank. Average. Average Average Average. Averag Avge.
Richfield Oil, common (quar.)
•25e. Aug. 1 "Holders of rec. July 5
Bank of N Y & $
$
$
$
$
8
$
$
7% Preferred (quar.)(No. 1)
•4334e Aug. 1 *Holders of rec. July 5
Trust CO.... 6,000 12,401
78,453
475 7,104
54,698 8,743 -Rolls-Royce of America, pref.(quar.)
"31.75 Aug. 15 "Holders of rec. Aug. 1
Bk of Manhat'n 10,700 16,204 176.306 3,050 18,675
138,030
26,351 -Rome Wire, class A common (quer.).--- 75c. Aug. 1 July 27 to July 31
Bank of Amerie
5,412
6,500
88,423
1,069
11,632
87,830 4,165 -Class B common (quar.)
250. Aug. I July 27 to July 31
National City__ 75,000 66,126 818,525 3.883 81,758 '828,306157,983
97
Royal Typewriter, corn
July 18 Holders of rec. July 9
$1
Chemical Nat'l_ 5,000 18,919 142,088 1.237 15,961
121,997 3,928 348
Common (extra)
NatBk of Comm 25,000 42,881 376,944
$1
July 18 Holders of rec. July 9
378 43,306 325,237 26,705
Preferred
334 July 18 Holders of rec. July 16
ChatPh NB &
13,500 13,655 221,872 2,446 23,606
168,437 44,902 13.138
Russell Motor Car (quar.)
154 Aug. 1 Holders of roe. July 15a Hanover Nat'l_ 5,000, 26,811 136,694 1,648 16,011
122,246 2,768 -Safety Cable (quar.)
31
July 15 Holders of rec. June 30a Corn Exchange_ 11.000 16,550 215,960 4,666 25,147
176,775
31,201
St. Joseph Lead (quar.)
543e. Sept. 20 Sept. 10 to Sept.20
National Park__ 10,000, 24,988 164,107
904 17,201
128,625 7,218 4-,684
Extra
25e. Sept. 20 Sept. 10 to Sept.20
Bowery & E Riv 3,000 3,686
76,127 1.950 7,887
54.267 23,653 2,980
Quarterly
50e. Dec. 20 Dee. 10 to Dec. 20
First National__ 10,000, 77,690 292,616
524 26,859
194,837 13,063 0 591
Extra
250. Dec. 20 Dec. 10 to Dec. 20
Am Ex Irving
32,000, 29,170 438,259 3,958 53.413 401,720 35,614 -St. Regis Paper, corn.(quar.)
•4334c Aug. 15 "Holders of rec. July 30
Continental Bk_ 1,000, 1,286
8,390
124
787
5,542
520
Salt Creek Producers Assn.(quar.)
750- Aug. 1 Holders of rec. July 156 Chase National_ 40,000 38,761 630.238 5,963 78,731 *595,110 41,712 24
:S
i-a
Savage Arms. 2d pref. (quar.)
"134 Aug. 15 "Holders of rec. Aug. 1
Fifth Avenue..
500, 3,215 29,403
747 3,244
25,505 ..
iii.
Schulte Retail Stores, common (quar.)_ _ 8734e. Sept. 1 Holders of reo.
Aug, ma Garfield Nat'l.._ 1,000 1,887
16,246
487
2,399
15,758
Common (quar.)
87340. Dee. 1 Holders of rec. Nov. 15a Seaboard Nat'l_ 6,000 11,445 132,390
717 16,864 128,243 3,090
46
Scullin Steel, Pref.(guar.)
75e. July 15 Holders of rec. June 30
Bankers Trust_ _ 20,000 36,945 392,876
935 44,149 *363,455 46,085 ---.
Seagrove Corporation, common (quer.). J300. JULY 20 Holders of rec. June 300
3,000, 5.053 60,490
734
7,461
54,072
5,885
-Preferred (Guar.)
1( July 20 Holders of rec. June 30a Guaranty Trust
- 30,000 31,854 472,488 1,306 52.195 "452,555 59,148 ---Sears, Roebuck & Co.„ corn. (guar.).-"62340 Aug. 1 *Holders Of
Fidelity Trust__ 4,000 3,285 43,095
rec. July 15
634 4,919
36.724 4,087 ---.
Seeman Brothers. Inc.. eon].(guar.).60e. Aug. 1 Holders Of rec. July 15
New York Trust 10,000 22,550 182,490
680 19,844 143,908 27,439 ---.
Shaffer 011 & Refining, pref.(guar.)-- - 15( July 25 Holders of rec.
Farmers L & Tr. 10,000 20,260 139,925
June 30
568 14,118 *104,180
Shattuck (Frank G.) Co.(quar.)
50e. July 10 Holders of rec. June 200 Equitable Trus 30,000 23,927 310,722 1,674 34,755 *355,219 22,279 -46,535 ---Simmons Company. met (quar.)
'154 Aug. 1 *Holders of roe. July 15
Smith (Howard) Paper Mills, pref.(qu.) 2
July 11 • Holders of rec. June 30
Total of averages 368,200554,9745,645,127 40,757628,026 c4.603.149643,389j23.342
Spanish Ely. Pulp & P. Mills, com.(qu.) 194 July 15 Holders
of rec. June 30
Preferred (quar.)
134 July 15 Holders of rec. June 30
Totals. actual • edition July 25,726,885 37,001 631,053c4,726,088 643,094 23,310
Stanley Works, pref. (guar.)
"4334c Aug. 15
Totals, actual condition June 255,566.191 39,736 595,108 c4,481,373646,387 23.397
Steel Co. of Canada, corn. & pref. (qu.). 154 Aug. 1 *Holders of rec. July 30
Holders
actual co edition June 18 5,621,779 40.228 598,063 c4,563,346 641.54423,454
Totals,
of
rec.
July
8
Sterling Products (guar.)
31.25 Aug. 1 Holders of rec. July I4a
Stetson (John B.) Co., common
$2.50 July 15 July 11
Banks Not Me mbers of Fed'I Res've Bank.
State
to
July
15
Preferred
4
July 15 July 11
State Bank.._ _ 5,000 5,817 106,189 4.467 2,250
to July 15
36,596 63,844
Stover Mfg.& Eng., pref.(guar.)
'134 Aug. 1 "HolCers of rec. July 20
Colonial 13ank__ 1,400 3.270 34,252 3,412 1,676
27,932 6,166
Sullivan Machinery (Oust.)
$1
July 15 Holders of rec. June 30
Sundstrand Corporation, pref. (quar.)_ _
134 July 15 Holders of rec. June 30a Total of averages 6,400 9,088 140,441 7,879 3,926
64,528 70,010
Superheater Company (guar.)
$1.50 July 15 Holders of rec. July 5
Thompson (J. R.) Co. (monthly)
30e. Aug. 1 Holders of rec. July 220 Totals, actual c ndition July 2 140,943 7,958 3,654
65,227 70,049
Monthly
300• Sept. 1 Holders of roe. Aug. 21a Totals, actual c ndltion June25 140,667 7.961 3,941
64,946 69,818
Tide-Water Oil non-voting pref.(guar.). 14 Aug. 15
of roe. Aug. 2a Totals, actual c ndition June 18 140,844 8,041 4,00
65,383 69,661
Tobacco Products Corp., corn. (quar.).._ $1.75 July 15 Holders
Holders of rec. June 240
Tooke Bros., Ltd., 7% pref. (quar.)__
154 July 15 Holders of rec. June 30
Trust Companies Not Membe rs of Fed 1 Res ye Bank.
Truseon Steel, corn. (quar.)
30e. July 15 Holders of rec. July 56 Title Guar &
10,000 20,237 67,975 1,678 4,535
41,421 1,880
Tuckett Tobacco, corn. (quar.)
1
July 15 Holders of rec. June 30a Lawyers Trust_ 3,000 3,463 24,085
955 1,893
19,180 1,103
Preferred (guar.)
134 July 15 Holders of rec. June 30a
Underwood Typewriter, common (qu.)... $1
Oct. 1 Holders of rec. Sept. 3a Total of averag
13,000 23,701
92,060 2,633 6,428
60,601 2,983
Preferred (quar.)
134 Oct. 1 Holders of rec. Sept. 3a
Union Steel Casting, corn. (quar.)
"50e. July 11 *Holders of rec. July 1
Totals, actual condition July 2 91,512 2,620 6,766
61,432 2,971
Preferred (quar.)
•134 July 11 *Holders of rec. July 1
Totals, actual co ndition June 25
90,912 2,530 6,310
58,983 2,973
Union Storage (quar.)
62340. Aug. 10 Holders of rec. Aug. la Totals, actual condition June 18 89.158 2,598 6,210
57.046 2,88
Quarterly
62340. Nov. 10 Holders of rec. Nov. la
United Cigar Stores,6% Pf.(qu.)(No.1) 134 Aug. 1 Holders of rec.
July 126 Gr'd aggr.,(Me 87.600587,7645,877,628 51,269638,380
United Drug, 1st preferred (quar.)
13( Aug. 1 Holders of rec. July 15a Comparison with prey. week _ _ +62.423 -34 +18158 4.728,278 716,38223,342
+91,255-2,017 -32
United Paper Board. pref.(quar.)
134 JO137 15 Holders of roe. July la
Preferred (quar.)
134 Oct. 15 Holders of rec. Oct. la
Gr'd aggr., acricond'n July 26.959.340 47,579641,473 4,852,747 716,114 23,310
Preferred (guar.)
134 Jan16'28 Holders of ree Jan.2'28a Comparison wi h prey. week_ _ +161,570--2,848 +36114 +247,44 -3,O64-87
Preferred (quar.)
134 Apr16.28 Holders of roe .Apr .'28a
United Profit"Sharing, corn. (In stock)
15
July 15 Holders of rec. June 15a Gr'd aggr., act' cond'n June 25 5.797,770 50,227605,359 4,605,302 719,1781.23,397
United Verde Extension Mining (quar.).. 75e• Aug. 1 Holders
of rec. July 66 Gr'd aggr., act' cond'n June 18 5.851,781 50.867608,281 4,685.77 714,09023,454
V.S. Cast Iron Pipe & Fdy., corn.(qu.)_ 234 Sept. 15 Holders of rec.
Sept. la Gr'd aggr., act',cond'n June 11 5,825.422 42,709590,365 4,843,846 716,94E23,285
Common (quar.)
234 Dee. 15 Holders of rec. Dee. la Gr'd aggr., actIcond'n June 45,887,413 54,242624,686 4,735.861 713,37323.314
Preferred (quar.)
1% Sept. 15 Holders of rec. Sept. la Gr'd aggr.,
cond'n May 28 5.835,519 53,669685,039 4,629,108 717.105 23,250
Preferred (quar.)
154 Dee. 15 Holders of rec. Dec. la
1
V. S. Industrial Alcohol, corn. (quar.).. 134 Aug. 1 Holders of
rec. July 15a
Note.-17. S. deposits deducted from net demand deposits in the general tote.
Preferred (guar.)
134 July 15 Holders of rec. June 30a above were as follows: Average total
July
2,
316,482,000.
Actual
July
totals,
2
U.S. Leather, prior pref.(No. 1)
7
Aug. 1 Holders of rue. July 15a 312,207,000; June 25, 321,619,000; June 18, 323,763,000;
June 11, $11,494,000,
U. S. Radiator. common (quar.)
•50e. July 15 *Holders of rec. July 1
June 4, 317,346,000; May 28, 316,273,000. Bills payable, rediscounts, acceptances;
Preferred (quar.)
•134 July 15 'Holders of rec. July 1
and other liabilities, average for week July 2, 3609,057,000; June 25, $616,425,000
U.S. Realty & Im rovement, corn
$1
Sept. 15 Holders of rec. Aug. 250 June 18,$604,723,000; June 11, 5631,081,000;
June 4, 3635,454,000; May 28. $638.U.S.Sm., Ref. & Min.,corn.& pf.(qu.) 8734 JI119 15 Holders of rec. July 6a 911,000. Actual
Universal Pipe de Radiator, pref.(qu.).. 134 Aug. 1 Holders of rue. July 15a 8599,863,000; Junetotals, July 2, $589,836,000; June 25, $612,974.000; June 18,
11, $606,703,000; June 4, 3627,598,000; May 28, $730,366,000.
Preferred (guar.)
134 Nov. 1 Holders of rec. Oct. 150
Upson Company, corn. A dr B (guar.)... 40e. July 15 Holders of rec. July 1
•Includes deposits in foreign branches not included in total footings, as follows:
Common A & B (extra)
100. July 15 Holders of rec. July 1
National City Bank, $250,050,000; Chase National Bank, $12,953,000; Bankers
V.Vivaudou, Inc.,coin.(quar.)
75e. July 15 Holders of rec. July la Trust Co., 837.070,000; Guaranty Trust Co., $74,843,000; Farmers' Loan &
Trust
Preferred ((War.)
IM Aug. 1 Holders of rec. July 15a Co., $2,193.000; Equitable Trust Co., $103,018,000. Balances carried in banks
in
Victor Talking Machine. Prot (quar.).. $1.75 July 15 July 6 to July 15
foreign countries as reserve for such deposits were: National City Bank. 340,615,000:
Prior preference (quar.)
134 Aug. 1 July 6 to July 15
Chase National Bank. $1,632,000; Bankers Trust Co., $1,272,000; Guaranty Trust
$8 preferred (quar.)
$1.50 Aug. 1 July 6 to July 15
Co., $3,525,000; Farmers' Loan & Trust Co., $2,193,000; Equitable Trust Co..
Vulcan Detinning, preferred (quar.)---- 134 July 20 Holders of rec. July 9a $10,153,000.
Preferred (account accumulated diva.) 2
July 20 Holders of rec. July 9a
c Deposits In foreign branches not included.
Preferred A (quar.)
134 July 20 Holders of rec. July 9a
Warner (Chas.) Co., corn.(quar.)
50e. July 11 Holders of rec. June 30
Weber & Hellbroner, pref.(guar.)
134 Sept. 1 Holders of rec. Aug. 17
The reserve position of the different groups of institutions
Western Grocers, Ltd.(Canada), pf.(qu) 134 July 15 Holders of rec. June 300
Western Paper Goods. class A & B (qu.) •500. July 15 *Holders of rec. June 30
on the basis of both the averages for the week and the
Westinghouse Air Brake (quar.)
$1.75 July 30 Holders of rec. June 306
Westinghouse Elec. & Mfg., corn. (qu.). $1 July 30 Holders of rec. June 30a actual condition at the end of the week is shown in the
Preferred (quar.)
$1 July 15 Holders of rec. June 306 following two tables:
White Eagle Oil & Refining (quar.)-50e. July 20 Holders of rec. June 30a
Wrigley (Wm.) Jr. & Co.(monthly)___. 25e. Aug. 1 Holders of rec. July 20a
Monthly
25e. Sept. 1 Holders of rec. Aug. 206 STATEMENT OF RESERVE POSITION OF CLEARING HOUSE BANNS
Monthly
25e. Oct. 1 Holders of rec. Sept. 20a
AND TRUST COMPANIES.
Monthly
25e. Nov. 1 Holders of rec. Oct. 20a
Monthly
250. Dee. 1 Holders of rec. Nov. 200
Yale & Towne Manufacturing
Oct. I Holders of rec. Sept. 9a
Averages.
Zellerbach Corporation (quar.) (guar.).- $1
50e. July 15 Holders of rec. June 306
Name of Company.
Cash
Reserve
Total
in
Reserve
Reserve
Surplus
•From unofficial sources. t The New York Stock Exchange has ruled that stock
in Vault. Depositaries Reserve.
Required.
Reserve.
will not be quoted ex-dlvidend on this date and not until further notice.
5 The
New York Curb Market Association has ruled that stock will not be quoted ex- Members Federal
$
Reserve Bank
628,036.000 628,026,000 617,711,040 10,314,960
dividend on this date and not until further notice.
State banks"
7,879.000 3,926,000 11.805.000 11,615,040
189,960
a Transfer books not closed for this dividend. d Correction. e Payable in stock. Trust companies*.... 2,633,000 6,428,000 9,061,000 9.090,150
-29.150
fPayable in common stock. g Payable in scrip. h On account of accumulated
dividends. m Payable in preferred stock.
Total Jtily 2..._ 10,512,000 638,380,000 648,892,000 638,416,230 10,475.770
Total June 25..._ 10,641,000 620,222,000 630.863.000 626,574,400 4,298,600
Cushman & Sons common stock dividend is payable In $8 preferred stock on the
Total June 18.._. 10,787,000 634.623,000 645,410,000 637,807,060 7,602,940
valuation of $100 for preferred stock.
Total June 11.... 11,072,000 645,320,000 656,392,000 631,756,000 24.635,400
IPayable 30c cash or 234% in stock, at option of stockholder.
• Not members of Federal Reserve Bank.
k Payable either in cash or class A stock.
b This is the reserve required on net demand deposits in the case of State banks
r Less income tax..
and trust companies, but in the case of members of the Federal Reserve Bank,
Includes
also amount of reserve required on net time deposits, which was as follows:
so Payable also on increased capital.
July 2,319.301.670; June 25, $19,371,660; June 18, $19,100,400; June 11, $19,439,y Subject to approval of Inter-State Commerce Commission.
100; June 4, $19,171,710; May 28, $19,097,070.
1
Actual Figures.
Reserve
Cash
in
Reserve
in Vault. Depositaries
Members Federal
Reserve Bank_
State banks*
Trust companies*._ _
.217
THE CHRONICLE
JULY 9 1927.]
a
Reserve
Required.
Total
Reserve.
Surplus
Reserve.
Boston Clearing House Weekly Returns.-In the
following we furnish a summary of all the items in the
Boston Clearing House weekly statement for a series of weeks:
BOSTON CLEARING HOUSE MEMBERS.
$
$
631,053,000 631,053,000 633,684,260 --2,631,260
7,958,000 3,654,000 11,612,000 11,740,860 --128.860
171,200
2,620,000 6,766,000 9,386,000 9,214,800
July 6
1927.
Changes from
Previous Week.
June 29
1927.
June 22
1927.
$
$
$
$
Total July 2..._ 10,578,000 641.473,000 652,051,000 654,639,920 -2,588.920
76,900,000
76,900.000
76,900,000 Unchanged
10,491,000 605,359,000 615,850,000 622,507,830 -6,657,830 Capital
Total June 25_
97,893,000
97,893,000
96,054,000 Dec. 1,839,000
Total June 18_...... 10,639,000 608,281,000 618,920,000 632,807,140 -13,887,140 Surplus and profits_ _
Inc. 21,439,000 1,064,390,000
Total June 11_ _ _ 10,771,000 590,365,000 601,136,000 627,555,530 -26,419,530 Loans, disc'ts dt Invest_ 1,085,829,000 Inc. 18.926.000 672,487,000 1,054,249,000
673,438,000
Individual deposits.... 691,413,000
177.707.000 Inc. 20,967,000 156,740,000 160,469,000
•Not members of Federal Reserve Bank.
Due to banks
7,786,000
Inc.
249.308.000
240.681.000
banks
State
of
257,094,000
case
the
in
deposits
demand
net
on
Time deposits
a This Is the reserve required
26,477,000
28,441,000
19,958,000 Dec. 6,519,000
and trust oompanies, but in the case of members of the Federal Reserve Bank In- United States deposits_
34,232,000
37,801,000
49,945,000 Inc. 15,713,000
cludes also the amount of reserve required on net time deposits, which was as follows: Exchanges for Cl'g H'se
86,367,000
89.987,000
94,970,000 Inc. 8,603,000
July 2, $19,292,820; June 25, 519,391,610; June 18, $19,246,320; June 11, $19,334,- Due from other banks
80,024,000
80,664,000
83,769,000 Inc. 3,745,000
Res've in legal deposles
760; June 4, $19,242,030; May 28. $19,354,170.
9,101,000
171.000
9,196,000
8,930,000 Dec.
Cash in bank
214,000
543.000
1.361.000 Inc. 1.147,000
li,s've, axe..in v it ilk
State Banks and Trust Companies Not in Clearing
Philadelphia Banks.-The Philadelphia Clearing House
House.-The State Banking Department reports weekly return for the week ending July 2, with.comparative figures
figures showing the condition of State banks and trust com- for the two weeks preceding, is given below. Reserve
panies in New York City not in the Clearing House as follows: requirements for members of the Federal Reserve System
and 3% on time deposits, all
SUMMARY OF STATE BANKS AND TRUST COMPANIES IN GREATER are 10% on demand deposits
NEW YORK, NOT INCLUDED IN CLEARING HOUSE STATEMENT.
to be kept with the Federal Reserve Bank. "Cash in vaults"
(Figures Furnished by State Banking Department.)
reserve. For trust companies not
Differences from is not a part of legal
Previous Week.
Jtdy 2.
Reserve System the reserve required
Federal
the
of
members
57.621,800
$1,389,860,800 Inc.
Loans and investments
288.200 is 10% on demand deposits and includes "Reserve with
5,324,100 Inc.
Gold
134,800
24,151,300 Inc.
Currency notes
in vaults."
117,249,100 Inc. 5,626,000 legal depositaries" and "Cash
Deposits with Federal Reserve Bank of New York_
1,432,861.700 Inc. 16,935.100
Total deposits
Deposits, eliminating amounts due from reserve deWeek Ended July 2 1927.
positaries and from other banks and trust comTwo Ciphers (00)
panies in N.Y.City,exchange dr U.S. deposits- 1,354,661,600 Inc. 12,723,900
1927
Trust
Members
of
omitted.
188,965.800 Inc. 6,602,000
Reserve on deposits
F.R.Systern Companies Total.
Percentage of reserves. 20.9%.
RESERVE.
550,225,0 55,000,0 855,225,0
Capital
-Trust Companies- Surplus and profits
State Banks-155.574,0 17.964,0 173,538,0
$107,414,300 16.03% Loans, discis dr investmis 951.034,0 47,587,0 998,721.0
$39,310,200 16.78%
Cash in vault •
4.63%
30.536,300
434,0 40,646,0
4.99%
11.705,000
Deposits in banks and trust cos-Exchanges for Clear.House 40,212,0
27,0 105,853,0
105,826,0
Due from banks
5137,950,600 20.66% Bank deposits
1,106,0 137,438,0
551,015,200 21.77%
138,332,0
Total
624,736,0 26,807,0 651,643,0
Individual deposits
2.462,0 157.712,0
155,250,0
* Includes deposits with the Federal Reserve Bank of New York, which for the Time deposits
916,318,0 30,375,0 946,693,0
Total deposits
State banks and trust companies combined on July 2 was $117,249,100. _4,147,0
4,147.0
Res've with legal deposit'y
67,829,0
Reserve with F.R. Bank._ 67,829,0
1,439,0 10,931,0
9.492,0
Caah in vault*
5,586.0 82,907,0
77,321,0
Total reserve dt cash held
4,240,0 72,367,0
68,127,0
in aeon
Banks and Trust Companies in New York City.-The Reserve required
1 seen
s,.............. .2.....h ....,...”
averages of the New York City Clearing House banks and
trust companies combined with those for the State banks and
trust companies in Greater New York City outside of the
Clearing House are as follows:
COMBINED RESULTS OF BANKS AND TRUST COMPANIES IN
GREATER NEW YORK.
Week EndedMar. 5
Mar. 12
Mar. 19
Mar.28
Apr. 2
Apr. 9
Apr. 16
Apr. 25
Apr. 80
May 7
May 14
May 21
May 28
June 4
June 14
June 18
June 7.5
July 2
Total Cash
in Vaults.
Loans and
Investments.
Demand
Deposits.
$
6,770,284,900
6,789,161,600
6,932,195.300
6,947,733,100
6,954,724,700
6,981,549,800
6,921,592,500
6,938,221.200
6,997,642,400
7,073,334.000
7,061,639,900
7,081,208,600
7,104,398,300
7,193,666,300
7,194,292,400
7.252,983,200
7,197,444,000
7,267,488,800
8
5,645,318,300
5,635,476.400
5,793,224,500
5,788,391,100
5,799,657,600
5.757,598,200
5,691,228.400
5,748,649,000
5,795,187,800
5,841,843,700
5,795,647,000
5,849,461,000
5,883,509.200
6,000,106.000
6,008,429,100
6,084,075,000
5.978,960,700
6,082,939.600
8
83,732,500
83,956,400
82,581,000
82,657,800
83,196,200
83,475,800
83,546,900
83,285,000
83,996,400
82,302.800
89,252,700
84.400,900
84,839,100
83,095.800
84,973,500
82,303,900
80,355,400
80.744.400
Reserve in
DepositarieS.
$
732,128,700
731,343,200
757,650.300
751,432,100
755,811,600
750,173,400
745,625,300
743,109,500
752,031,000
753,215,80(
752,785,901
763,161,10(
761,432,001
788,409,401
799,427,301
790.267,70
773,532,90
797.870.40
New York City Non-Member Banks and Trust Companies.-The following are the returns to the Clearing
House by clearing non-member insitutions and which are not
included in the "Clearing House Returns" in the foregoing:
RETURN OF NON-MEMBER INSTITUTIONS OF NEW YORK
CLEARING HOUSE.
(Rated is thousands of dollars, that is, three ciphers tom omitted.)
CLEARING
NON-MBMBERS Capital.
Week Ending
July 2 1927.
Members of
, Beak
.
Fedi Res's
Grace Nat. Beak_
State Beak
Not Member of the
Federal Reserve Bank
Bank of Week. 11 ts_
Trust C1,111 va n y
Not Member of the
Federal Reserve Bonk
Mech. Tr.. Bayonne
Loans,
Digcounts,
Net
Profits. Investrunts.
dtc.
Reserve
Net
with
Cash
Net
in
Legal Demand Time
Vault. Depost- Deposits.Deposite.
(arias.
Average Average. Average. Average.
$
$
3
$
72
1,139
7,705
4,090
$
1,000
3
1,940
$
13,934
400
1,060
10,765
912
423
7,053
3,642
500
693
9,474
315
192
3,839
5,873
1,900
Or'd aggr., June 26
Comparison with prey, week
3,693
34,173
+143
1,299
-100
1,754 a18,597
-42 -348
13,605
+101
8,693
3,693
3,693
2.593
34,030
34,416
35,280
36.083.
1.399
1,303
1,377
1.307
1,796 a18,945
1,816 19,315
1,851 19,818
1.925. en sum
13,504
13,445
13,467
le 4/19
Or'd
Or'd
Gr'd
(led
aggr., June
atom_ June
aggr., June
agar.. May
18
11
4
28
a United States &Desna deducted, $2,000.
Bills payable. rediscounts, acceptances and other liabilities. $2,380,000. Deficit
In reserve. $102.730 decrease.
June 18
1927.
855,225,0 555,225,0
172,727,0 172,727,0
988.610,0 091,610.0
83,459,0 33.686,0
94,188,0 102,146.0
133,704,0 139,318,0
630.840.0 647,743.0
157.369.0 155,523.0
921,913.0 942,584,0
4,182.0
3,497,0
67,498,0 68,2815.0
11,055.0 11,189,0
82.050,0 83.656.0
70,861,0 72.308,0
11.159., • 11.2411_0
members.
•Cash in vault not counted as reserve for Federal Reserve
Condition of the Federal Reserve Bank of New York.
-The following shows the condition of the Federal Reserve
Bank of New York at the close of business July 6 1927 in
comparison with the previous week and the corresponding
date last year:
1927. Ju y 7 1926.
July 6 1927. June 29
Re8OUTC4s-
381,719,000
Gold with Federal Reserve Agent
11,720,000
Gold redemp.fund with U. S. Treasury_
386,821.000
8.003.000
247,945,000
14,056,000
Gold held exclusively agst. F.R.notes_ 393,439,000
189.537,000
Gold settlement fund with F. R. Board_ 485,443,000
Gold and gold certificates held by bank_
394,824,000
271,456,000
514.099,000
262,001,000
282,565,000
401,980,000
1068.419.000 1.189. •1.000
84,591,000
32927.000
946.546,009
36,040,000
1,101.346,000 1,215,070,000
12,618.000
11,319,000
982,586,000
9,955,000
121.858,000
22,980,000
80.701,000
22,345.000
174.441,000
63.561,000
144,838,000
42,092.000
103,106.000
58,262,000
338.003,000
52,420,000
26,356,000
12,325,000
27,682,000
30,322,000
12,092,000
27.149,000
5,391,000
59,225,000
11.266,000
Total U.S. Government securitlesPbreign loans on gold
66,303,000
69,563.000
75,882,000
1,343,000
Total bills and securities (Ste Note).
253,293,000
230,931,000
367.648.000
1,998,000
12,355,000
180.838.000
16,276,000
4,449,000
6,369,000
9,068.000
162,337,000
16,276,000
4,050.000
646,000
165.750,000
Total gold reserves
Reserves other than gold
Total reserves
Non-reserve cash
Bills discountedSecured by U. S. Govt. obligations
Other bills discounted
Total bills discounted
Bills bought in open market
U.S. Government securitiesBonds
Treasury notes
Certificates of indebtedness
Gold held abroad
Due from foreign banks (See Note)
Uncollected items
Bank premises
All other resources
Total resources
16,ns,ocio
5,419,000
1,581.874,000 1488.659.000 1,548,723,000
LtatItstes2 000 411,903,000
14:
92.
Fedl Reserve notes in actual circulation 405.194.000 4
000000
,000
2:
36
133
44
,2
11:
Deposits-Member bank, reserve soot- 895
8829.906831.'000000
Government
25.4134":000000
2,521,000
Foreign bank (Sil Note)
11,375,000
18,123,000
23,727,000
Other deposits
921.537,000 1.006,118,000 905,940,000
Total deposits
151,881,000 142,842,000 132,879,000
Deferred availability items
35,400,000
88.928.000
38,928,000
Capital paid in
59,964,000
61,614,000
61,614,000
Surplus
3,931,000
2.637.000
2,740.000
All other liabilities
Total liabilities
1,900
1.900
1,900
1.900
0 10A 11
June 25
1927,
1 581,874,000 1,655.659,000 1,548,723,000
Ratio of total reserves to deposit and
74.6%
88.3%
83.0%
Fedi Res've note liabilities combined_
Contingent liability on bills purchased
14,803,000
39.786.000
40,328,000
for foreign correspondence
NOTE -Beginning with the statement of Oct.7 1925, two new items were added
in order to allow separately the amount of balances held abroad and amounts due to
foreign correspondents. In addition, the caption, "All other earning assets,- Previously made 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 discounts, 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.
218
THE CHRONICLE
[VOL. 125.
Weekly Return of the Federal Reserve Board.
The following Is the return issued by the Federal Reserve Board Thursday afternoon, July 7 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 Agents'
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between the Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon the returns for the
latest week appears on page 164 being the first item in our department of "Current Events and Discussions."
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOSE OF BUSINESS JULY 6 1927.
Julk 8 19,27. June 29 1927. June 22 1927. June 15 1927. June 8 1927. June 1 1927. May 25 1927. May 18 1927. Ju y 7 1926.
$
s
RESOURCES.
s
$
$
$
$
$
$
1,606,794,000 1,591,906,000 1,619,569,000 1,678,233,000 1.634,388,000 1,610,437,000
Gold with Federal Reserve agents
1,651,246.000 1,637,863,000 1,322,166,000
Gold redemption fund with U. B. Treas.
47,738,000
42,933,000
43,618,000
49.272,000
46,765,000
54,626,000
47.130,000
50,294.000
54,655,000
Gold held exclusively agst. F. R. notes 1,654,442,000 1,634,839.000 1,663387,000 1,727,505,000 1,683,153,000 1,665,063,000 1,698,376.000 1,688,157,000
1,376,821,000
598,832,000 610,477.000 591,047,000 531,377,000 579,600,000 601,472,000
Gold settlement fund with F. R.. Board
628,496,000 • 785,731,000
Gold and gold certificates held by banks_ 734,835,000 775.194.000 774.027.000 757,763,000 743.138,000 728.503,000 552,216,000
761,385,000 740,217.000 644,265,000
Total gold reserves
2,988,109.000 3,020,510,000 3,028,281,000 3,016,645,000 3,005,891,000 2,993,038.000 3,011,977,000 3.056.870,000 2,806,817,000
Reserves other than gold
152,848,000 163,299,000 165,466,000 168.713,000 164,010.000 160,747,000 165,848,000 166,281,000
135,177,000
Total reserves
3,140,957,000 3,183,809,000 3,193,727,000 3,185,358,000 3,169.901,000 3,153,785,000 3,177,825,000 3,223,151.000 2,941,994,000
Non-reserve cash
58,109,000
50,131,000
59.844,000
60,548,000
61.276,000
53,222,000
60,197,000
63,724,000
43,240,000
Bills discounted:
Secured by U.S. Govt. obligations
301,083,000 274,581,000 234,997,000 190,139,000 203,481,000 262,819,000 228,715,000 249,203,000 319,052,000
Other bills discounted
205,705.000 202,730,000 203.687.000 170.803,000 195,822.000 233,888,000 199,905,000 209.032,000 293,515,000
Total bills discounted
508,768,000 477,311.000 438,684.000 360,942,000 399,283,000 496,507,000 428,620,000 458,235,000 612,567,000
Bills bought In open market
199,043,000 216,118,000 183,217,000 182,504,000 221,635.000 228.993,000 238.170,000 225,493,000 337,569,008
U. S. Government securities:
164,484.000 166,119,000 159,944,000 147.534,000 143,104,000 118,862,000 105,173,000
Bonds
75,871.000
77,001,000
83,985,000
83,482,000
Treasury notes
83,186,000 105,857.000 139,031.000 120,953,000
93,978,000
90,789,000
126,502,000 126,297,000 126,211,000 293,833,000 155,928,000 124,682,000 122.769.000 102,391.000 233,676,000
Certificates of Indebtedness
64,640,000
Total U. B. Government securities- 374,468,000 376.401,000 369,341,000 547,224,000 438,063.000 362,497,000 321,920,000 289.051.000
375,317,000
Other securities (see 001e)
1,300,000
1,300,000
1,300,000
1,300,000
1,800,000
1.800.000
1,800,000
1,800,000
3,200,000
Foreign loans on gold
4,900,000
Total bills and securities Om IWO.- 1,081.579.000 1,071,130,000 992,542,000 1,091,970,000 1,060,781.000 1,089,797.000 988,510,000 954.579,000 1,233,553,000
Gold held abroad
25,734.000
13,566,000
62,233,000
40,333,000
59,548,000
59.548,000
59,548.000
59.548,000
Due from °reign banks (see nOle)
38,049,000
26,610,000
662.000
14,118,000
681.000
660,000
660,000
660,000
646.000
Uncollected Items
696,172,000 623.523,000 683,052,000 839,940,000 653,969.000 702.734.000 639.383,000 742,211,000
701.324,000
Bank premises
59.146.000
59,135,000
59.133.000
59.136.000
59,094,000
58,882.000
58,882,000
58,883,000
59,788,000
All other resources
14,217,000
14,261,000
13,724,000
.
13,614,000
15,007,000
13,898,000
13,509,000
13,520,000
17,966,000
-Total resources
5,093,861,000 5,060,267,000 5,056,476,000 5,313,456,000 5,080,237,000 5,132,526,000 4,998,514,000 5,116,276,000 4,998,511,000
LIABILITIES.
F. R. notes in actual circulation
1,751,050,000 1,702,693,000 1.689.347,000 1,698,294,000 1,716,779,000 1,740,432,000 1,705,804,000
1,711,385,000 1,737,500,000
DepositsMember banks-reserve account
2,297,397,000 2,341,519,000 2,307,056,000 2,421,163,000 2,331,460,000 2,308,140.000 2,267.762,000 2,295,042,000 2,239,886,000
Government
7,337,000
26,887,000
26,831,000
5,548.000
27.591.000
25,895,000
24,185,000
25,373,000
12.842,000
Foreign banks (see note)
6.336,000
5.381.000
5,163,000
4,378.000
5.453.000
4,687,000
5,757,000
5,188,000
5.728,000
Other deposits
30,830,000
25,165,000
25,728,000
42.577.000
25,963,000
27.857.000
27,858.000
27,787.000
20,694.000
Total deposits
2,340,000.000 2,398,952.000 2,364,778,000 2,473,666,000 2,390.467.000 2.366.579,000 2,325,562.000 2.353,390,000 2.279,150,000
Deferred availability Items
631,825,000 584.827,000 629,142,000 768.683,000 800,724.000 653.689,000 595.189,000 680,228,000 623,289,000
Capital paid in
129,428.000 129,424,000 129,375,000 129,365,000 129,108,000 129.036,000 129,030,000 128.878,000 122,750,000
Surplus
228,775,000 228,775,000 228,775.000 228.775,000 228.775.000 228,775,000 228.775,000 228.775.000 220,310,000
All other liabilities
11,885,000
15,596,000
15,059,000
14,673,000
14,384,000
14,015,000
14,154,000
13.620,000
15,512,000
Total liabilities
5,093,861,000 5.060,267,000 5,056,476,000 5.313,458,000 5.080.237,000 5,132,526,000 4.998,514,000 5,116,276,000 4,998,511,000
Ratio of gold reserves to deposit and
F. R. note liabIlitle -combined
73.6%
73.0%
74.7%
72.3%
73.2%
72.8%
74.2%
75.1%
69.8%
Ratio of total raw .••• to deposit and
F. R. note liabilities combined
77.6%
76.8%
78.8%
76.4%
77.2%
76.8%
78.8%
79.3%
73.2%
Contingent liability on bills purchased
for foreign correspondents
146,037,000 146,211,000 146,954.000 148.535,000 149,539,000 159,777,000 159,674,000
161,137.000
54,338,000
Distribution by Maturities$
8
$
$
$
i
$
$
h
1-15 days bills bought in open market75,841,000
91,041,000
64,146,000
84.555,000 122,251,000 129,924,000 132,322,000 127,839,000 103,690,000
1-15 days bWs discounted
406,073,000 372,875,000 330,475,000 268.414,000 304,393,000 381,040,000 329,889.000
364,381,000 466,008.000
1-15 days U. S. certif. of Indebtedness.
33,000
185,032,000
19,991,000
50,186,000
5,524,000
301,000
1-15 days municipal warrants
16-30 days bills bought in open market
51,953,000
50,539,000
51,198,000
44,800,000
47,147.000
50,757.000
58,539.000
48,906,000
38,395,000
18-30 days bills discounted
22,398,000
24,913,000
29,280,000
23,793,000
23.463,000
26,053,000
24,429,000
22,044,000
29,520,000
16-30 days U. S. certif. of Indebtedness_
6,810.000
61,584,000
58,029.000
16-30 days municipal warrants
31-60 days bills bought In open market_
45,647,000
46,176,000
45,481,000
37.669,000
38,072,000
34.021,000
32,390,000
36,401.000
49,794,000
81-60 days bills discounted
34,937,000
36,849,000
37,227,000
30.695.000
33.729,000
43,438,000
36,602,000
34,988,000
49,877,000
81-60 days U. S. certif. of indebtedness.
81-60 days municipal warrants
61-90 days bills bought In open market_
20,233,000
22,064,000
18,628.000
12,261,000
10.046,000
11,379.000
10.016,000
8.854,000
42,534,000
81-90 days bills discounted
28,262,000
23,502,000
21,951,000
18,299,000
18,484,000
28,563.000
20,797,000
19,480,000
40,814,000
61-90 days U. S. certif. of Indebtedness_
31,257,000
31,172,000
31,043,000
01-90 days municipal warrants
Over 90 days bills bought in open market
5,569,000
6.298,000
3,764,000
3.219.000
4,119,000
2,912,000
2,903,000
3,693.000
3,156.000
Over 90 days bills discounted_
19.172,000
15,098,000
19,751,000
19.741,000
19,214,000
19,413,000
16.903.000
17.342,000
26,348,000
Over 90 days certif. of Indebtedness
95,212,000
95,125,000
95.188,000 108,801,000
57.962.000
67.688,000
55,661.000
44,061,000
64.640,000
Over 90 days municipal warrants
F. R. notes received from Comptroller
F. It. notes held by F. R. Agent
2,945,476,000 2,935,967.000 2.949,476,000 2,954,967,000 2,951.128.000 2,954.669.000 2.953.818.000
2,959,293,000 2,858,546 000
838,615,000 859,585,000 870,600,000 868,250.000 844,043,000 848.895,000
852.523.000 862,553,000 835,676,00
0
Issued to Federal Reserve Banks.... 2,108,861,000 2,076,382,000 2,078,876,000 2,086.717,000 2,107,085,000 2,105,774,000
2,099,295,000 2,098,740,000 2,022,870.000
Row SecuredBy gold and gold certificates
392,341,000 392,400.000 392,900,000 390,901,000 360,601,000 390,301,000
360,400,000 411,604,000 364,483,000
Gold redemption fund
99,231,000
100,248,000
99,181,000 105,931,000 101,422,000
99.663,000
99.284,000 100,418,000
93,001,000
Gold fund-Federal Reserve Board.... 1,114,115,000 1,100,275,000 1,127.488,000 1,181,401,000 1,142,065,000 1,120,473,000
1.125,843,000 924,682.000
BY eligible paper
657,099,000 647,180.000 587.585.000 525,947,000 607.560,000 703.210,000 1,161,562,000
631.963,000 653.181.000 830,213,000
Tara)
9 oan 51(12 niX)2.239.086.000 2.207.154.000 2.204.180.000 2.241.948 non 2 512 RA7 AllA
290S 9110 nnn 9 901 nee nnn 1 I S9 190 Ann
NOTE.-Beginning with the statement of Oat. 7 1926. two new twos were added in order to show
the amount of balanced hold abroad and amounts due
to foreign correspondents. In addition, the caption, • All other earning assets,- p eviouely made up ofseparately
Foreign
Credit Bank debenturee, was changed to
"Other securities, and the caption," "Total earning assets" to "Total bills and securities." The latter item wasIntermediate
adopted as a more accurate description of the total of
the discounts, acceptance() and seCIIHtles acquired under the Provisions of Sections 13 and 14 of the Federal Reserve Act,
which, It was stated, are the only items included
therein.
WEEKLY STATEMENT OP RESOURCES AND LIABILITIES OF EACH OP THE 11 FEDERAL RESERVE BANKS AT CLOSE OF
BUS NESS JULY 6 1917
Two ciphers (00) omitted.
Cleveland
ma.
Richmond
York.
Atlanta.
Boston.
New
Chicago.
Federal Reserve Bank ofSi. LOW. mosissop. Ken. City Dallas. &Fs Pros
Total.
RESOURCES.
$
$
$
$
$
$
S
$
$
S
$
II
$
Gold with Federal Reserve Agents 134,914,0 381,719,0 115,633,0 196,059,0 51,240,0 146,025,0 243,955,0
10,953,0 56,221,0 56,248,0 26,946,0
Gold red'n fund with U.S. Treas. 10,524,0
11,720,0 7,558,0 3,116.0 1,329.0 1,940.0 1,578,G 1,459,0 1,436,0 2,795.0 1,333,0 186,791,0 1,606,704,0
2,950,0
47.738,0
Gold held excl. asst. F.R.notes 145,438,0 393,439,0 123.191,0 199,175,0 52,569,0 147,985,0 245,533,0
Gold settle't fund with F.R.Board 45,748,0 189,537,0 46,540,0 52,677,0 22,102,0 12,869,0 118.328,0 12,412.0 57,657,0 59,043,0 28.279,0 189,741,0 1,654,442,0
18,726,0 12.878,0 26,824,0 13,125,0 39,480,0 598,832,0
Gold and gold certificated
28,901,0 485,443,0 27,074,0 62,322,0 4,711,0 4,003,0 52,471.0 15,784,0 7,306,0 8,147,0 9,201,0 29,472.0
734,835,0
Total gold reserves
220,087,0 1,068,419,0 196,805,0 314,174,0 79.382,0 164,837,0 416,330,0 46,922,0 77,841,0 94,014,0 50.805,0 258,693,0
2,988,109,0
Reserves other than gold
32,927,0 5,525,0 10,493,0 7,807,0 13,149,0 22,154,0 17,971,0 3,710,0 5,487,0 7,759,0
17,153.0
8,713.0 152,848,0
Total reserves
237,240,0 1.101,346.0 202,330,0 324,867,0 87,189,0 177.986.0438,484.0 64,893,0 81,551,0 99,501,0 58,364,0 267,406,0
3,140,957,0
Non-reserve cash
977,0 3,816,0 5,332,0 4,405,0 8,977.0 3,705.0
11,319,0
3,889,0
877,0 2,049,0 2.281,0 2,504,0
50,131.0
Bills discounted:
Sec. by U. S. Govt. obligations 12,789,0 121,858,0 31,534.6 26,775,0 8,288,0 6,550,0 51,257.0
16,680,0 5,032,0 3,918,0 2,245,0 14,137,0 301,063,0
Other bills discounted
15,873,0
22,980,0 15,886,0 16,361,0 16,465,0 25,722,0 24,398,0 16,877,0 4.146,0 10.520,0 4,060,0 32,417,0
205,705,0
Total Wee discounted...
28.862,0 144,838,0 47,420,0 43,136.0 24,753.0 32.272,0 75,655,0 33,557,0 9,178,0 14,438,0 6,305,0 46,554,0 506,768,0
Bills bought In open market
18,806,0
42,092,0 14,325,0 18,966,0 8.926,0 10,430,0 27.685,0 11,468,0 7,060,0 9,744,0 9,811,0 19,730,0 199,043,0
U. 8. Government securities:
Bonds
6,463.0
26,356,0 5,807,0 18,543,0 7.111,6 2,947,0 35.602.0 6,319,0 8,801,0 18,233,0 15,881,0 12,421,0 164,484,0
Treasury notes
2,268,0
12,325,0 5,695.0 16,984,0 2,519,0
933.0 6,612,0 7,910,0 5,028,0 4,538,0 3.895.0 14,777,0
83,482,0
Cent .cates of indebtednesa_ 5,912,0
27,682,0 15,660.0 9,866,0 6,195.0 5,958,0 15,005,0 5,604,0 4,653,0 9.072,0 7,842,0 13,053,0 126,502.0
otal U.S. Ov..securitles_ lA RA1 0
an QA.1 0 971090 AA 201 n ic 09c n
0 020 0 872100 102220 12 429 A 21 041 n 272120 an 951 n
271 AAR n
- •
•-._ .
-
219
THE CHRONICLE
JULY 9 1927.]
it/SOURCES (Concluded)Tee ciphers (00) omitted.
New York.
Phila.
$
$
•$
1,000,0
Other securities
62,111,0
1,200,0
2,665,0
71,738,0
3,946,0
39,0
Total bil.ft and securities
Gold held abroad
Due from foreign banks
Uncollected items
Bank premises
&I. other resources
accetand. Mc/intone Atlanta. Chieciao. Si. Louts. Minneap. Kan. Cue Dallas.
Boston.
$
$
$
$
$
San Fran.
Total.
$
$
s
$
$
1.300,0
300,0
253,293,0 89,907,0 107,495,0 49,504,0 52,840,0 160,559,0 64,858,0 34,720,0 56,023,0 43,734,0 108,535,0 1,081,579,0
480,0
688,0
592.0
560,0 1,120,0
13,566,0
656,0 2,208,0
832.0
1.998,0 1,536,0 1,696,0
38,049.0
12.355,0 3,412,0 3,767,0 1,848,0 1,457,0 4,904,0 1,528,0 1,066,0 1,315,0 1,244,0 2,488,0
180,838,0 59,961,0 65,342,0 55,038,0 26,648.0 81.996,0 34,216,0 14,485,0 42,369,0 25,128,0 38.413,0 696,172,0
59,146,0
16,278,0 1,748,0 7,119,0 2,336,0 2.900,0 8,297,0 3,957,0 2,774,0 4,459,0 1,827,0 3.507.0
696,0
939,0 1,704,0
561,0 1,011,0
14,261,0
290,0 1,124,0
315,0 1,590,0 1,543,0
4,449,0
382,828,0 1,581,874,0 360,161,0 515,026,0 202,394,0 268,482.0 706,968,0 174,784,0 137,657,0 207,004,0 133,699,0 422,984,0 5,093,861,0
Total resources
LIABILITIES.
143,037,0 405,134,0 133,060,0 216,060,0 61,017,0 160,183,0 244,521,0 40,406,0 62,052,0 64,177,0 35,425,0 185,868,0 1,751,050,0
circulation_
F. R. notes in actual
Deposits:
Member bank-reserve poet- 143,883,0 895,232,0 137,160,0 194,428,0 71,398.0 66,401,0 335,715,0 84.661,0 60,195,0 91,135,0 57.600,0 169,589,0 2,297,397,0
184,0
497,0
567,0
330,0 1,077,0
7,337,0
172,0
1,133,0
604,0
172,0 1,408,0 1,112,0
81,0
Government
199,0
188.0
377,0
161,0
231,0
5,336,0
404,0
1,445,0
517,0
743,0
571.0
280,0
220,0
Foreign bank
143,0
120,0
286.0
280.0
3,874,0
30,830,0
117,0
90,0
1,039,0
23,727,0
80,0
1,004,0
70.0
deposits
Other
144,576,0
68,075,0
9,145,0
17,606,0
339.0
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
921,537,0 138,361,0 196,175,0 73,156,0 67,823.0 337,578,0 85,502,0 51,576,0 91,638,0 58,571.0 174,407,0 2,340.900,0
151,861,0 54.159,0 63,985,0 49,183.0 25,136,0 73,420,0 32,619,0 12,544,0 37,284.0 26,770,0 38,789,0 631,825.0
38,928,0 13,033,0 13,856,0 6,204,0 5,103,0 17,245,0 5,271,0 3,007.0 4,220,0 4,246,0 9,168,0 129,426.0
61,614,0 21,267,0 23,746,0 12,198,0 9,632,0 31,881,0 9,939,0 7,527,0 9,029,0 8,215,0 16,121,0 228.775,0
472,0
631,0
658,0
11,885,0
951,0
605.0 2,323,0 1,047,0
2,740,0
281,0 1,204,0
636,0
382,828,0 1,581,874,0 360,161,0 515,026,0 202,394,0 288,482,0 708,968,0 174,784,0 137,657,0 207,004,0 133.699.0422,984.0 5.093.861,0
Total ILnbilities
Memoranda.
62.1
74.2
63.9
76.8
71.8
75.3
51.5
83.0
74.5
78.8
65.0
78.1
- 82.5
Reserve ratio (per cent)
Contingent liability on bills pur
40,326,0 14,036,0 15,498,0 7,603,0 5.995,0 20.177,0 6,287,0 4,386,0 5.410,0 5,117,0 10,236,0 146.037,0
abased for foreign correspond't 10,966,0
•
R. notes on band (notes ree
from F. R. Agent less notes Ii
25.814.0 115.546.0 32.573.0 24.991.0 14.959.0 27.794.0 55.645,0 3,562.0 4,261,0 8,668,0 4,851,0 39,147.0 357,811,0
circulation)
FEDERAL RESERVE NOTE ACCOUNTS OF FEDERAL RESERVE AGENTS AT CLOSE OF BUSINESS JULY 6 1927
federal Reserve Agent at-
Boston. New York.
Phila.
Cleveland. Richmond Atlanta. Chicago. St Louis. Minneap. Kan.City Dallas. Ban Fran.
Total.
8
(Two ciphers (00) omitted.)
1.11.notes reed from Comptroller 242,001,0
F.R.notes held by F. R. Agent._ 73,100,0
$
$
$
$
$
$
$
$
$
8
$
$
812,820,0 199,533,0 275,791,0 102,600,0 264.247,0 453,066.0 86,808,0 85,567,0 111.085,0 59,363,0 272,615,0 2,945,478,0
292,080,0 33,900,0 34.740,0 26,624,0 76,270,0 152,900,0 22,840,0 19,254,0 38,220,0 19,087,0 47.600,0 836,615,0
F.R.notes Issued to F. R.Bank 168,901,0
Collateral held as security for
WE.notes issued to F. R.Bk.:
35,300.0
Gold and gold certificates
10,614,0
Gold redemption fund
Gold fund-F.It. Board._ 89,000,0
47,468,0
Eligible paper
520,740,0 185,633,0 241,051,0 75,976,0 187,977,0 300,166,0 43,968,0 66,313,0 72.845,0 40,276,0 225,015,0 2,108,861,0
182,382,0
540,515,0 186,708,0 255,820,0 82,979,0 188,159,0 345,329,0 55,148,0 72,048,0 79,943,0 42,625,0 252,149,0 2,263,803,0
Total collateral
18,408,0 40,000,0 392.341,0
8,950,0 12,267,0
8,780,0 36,469.0 17,017,0
215,150,0
954.0 3,388,0 3,538,0 17,813,0 100,248,0
21,569,0 10,356,0 12,279,0 8,771,0 9.208,0 1,955,0 2,003,0
43,000,0 52,860,0 5.000,0 129,178,0 1,114,115,0
145,000,0 105,277.0 175,000,0 8,000,0 119,800,0 242,000,0
158,796,0 51,075,0 59,761,0 31.739.0 42,134,0 101,374,0 44.193,0 15,827,0 23,695,0 15,679,0 65,358,0 657,099,0
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 668 member banks from which weekly returns are obtained. These figures are always a week behind
those for the Reserve banks themselves. Definitions of the different items in the statement were given in the statement
of Dec. 12 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 Events and Discussions," on page 165, immediately following which
we also give the figures of New York reporting member banks for a week later.
I. Data for all reporting member banks In each Federal Reserve District at close of business June 29 1927. (Three ciphers (000) omitted.)
Boston. Now York
Federal Reserve District.
Number of reporting banks
Loans and discounts, gross:
Secured by U.B.Gov't obligations
Secured by stocks and bonds
All other loans and discounts
$
$
5,225
19,216
106,870 942,000
383,122 1,253,525
$
4,579
199,555
295.935
2,599
76,748
155.483
4,336
123,465
291,195
2,917
78.540
232,775
520,088
495,217 2,214,741
314,232 1,303,218 14,718,025
$
$
6,517
33,833
368,554 2,549,428
637,762 2,931,836
$
10,044
403,712
388,592
i
18,368
590,468
777,520
802,348 1,386,356
454,981 2,323,319
103,832
288,476
285,147
389,232
71,754
78,209
392,308
674,379
149,963
1,467,814 7,838,416 1,194,656 2,060,735 670,051
Total loans and investmente
98.910 865,271
80,860 128,947
40,858
Reserve balances with F. R.Bank
18,381
73,753
30,004
13,545
15,496
Oseh In vault
906,512 6,011,368 758,434 1,040,390 382,913
Net demand deposits
451,671 1.471,696 282,799 871,759 230,214
Time deposits
22,980
22,373
21,094
Government deposits
4,524
17,766
Due from banks
58,466 124,767
54,435
58,958
90,801
Due to banks
153,608 1,220.279 165,841 235,816 109,066
Bills My. & redls. with F. It. Bk.:
15,700
63,150
Secured by U.8.Gov't obligationa
21,970
27,144
4,066
10,333
All other
17,353
7,508
6,184
3,542
Total bOtTOWI028 from
FM Ibmic
21051
73 452
20 47A
22 295
668
$
$
118,838
6,933
329,178 5,922,274
967.047 8,676,913
$
4,211
153,756
362,121
67
7 MIR
34
s
$
65
Total.
31
71
24
45
97
49
Total loans and discounts
1,012,833 5,515,097
Investments:
155,902 996,333
U. S. Government securities
Other bonds, stocks and securities 299,079 1,326,988
Total investments
Mkt. Cleveland Richmond Atlanta. Chicago. St. Louis. Minneap Kan. City Dallas. SasFran.
91
36
s
58
500,069
234,830
418,996
58,079
61.594
323,891
479,195
76,867
124,729
82,840
56,730
99,096
106,217
84,073
27,861
271,167 2,568,981
242,894 3,481,202
119,673
803,088
201,596
119,570
205,313
91,934
514,061 6,050,183
814.890 3,017,827
37,509 235,351
11,207
48,625
325,263 1,816,338
240,043 1,105,257
12,374
19,159
65,403 229,593
100,751 498.705
701,665
48,577
7,718
401,509
230,988
2,480
47,866
129,781
354,400 624.309 406,166 1,817,279 20,768,208
23,092
52,930
28,883 109,075 1,751,259
5,739
12,550
10.180
23,134
270,312
205,252 490,314 269.951 773,141 13,381,386
128,908 151,648 109,734 957,402 6,212,099
2,271 . 8,758
162,021
26,170
2,072
54,564 143,533 1,086,297
45,840 112,071
85,545 221.413 3,197,364
81,057 195,502
2,879
12,419
36,867
15,384
14,996
10,020
500
1,880
4,552
1,810
264
12,352
17,712
203,294
105.271
in 905
59 951
9t 015
can
5419
2 074
30 054
30S M5
3. Data of reporting member banks in New York City. Chicago, and for the whole country.
All Reporting Member Banks,
[June 29
Reporting Member Banks in N.Y.City.
Reporting Member Banks in Chicago.
1927. June 22 1927. June 30 1926. June 29 1927. June 22 1927. June 30 1926. June 29 1927. June 22 1927 June 30 1926.
668
(ember of reporting banks
703
668
54
54
58
$
$
$
,oans and discounts, gross:
3
3
$
118,838,000
121,564,000
142,936,000
Secured by U. B. Gov't obligations
31,371,000
32,528,000
44,553,000
5,922.274,000 5,856,863,000 5,419.602.0002,210.145,000 2,171,516,000 2,209,125,000
secured by stocks and bonds
8,676.913,000 8,640,813,000 8,382.980.000 2,569,962,000 2,554,379,000 2,296,513,000
All other loans and discounts
45
$
13,117,000
713,924,000
674,828,000
45
$
13,916,000
712,092,000
669,737,000
46
3
15,537,000
618,294,000
701,069,000
14,718,025.000 14,619,240,000 13,945,518,000 4,817,478,000 4,758,423,000 4,550,191,000 1,401,869,000 1,395,745,000 1,334,900,000
Total loans and discounts
Investments
2,568,981,000 2,595,009,000 2,508,995,000 898,429,000 916,770,000 913,337,000 188.189.000 186.278,000 184,099,000
U. B. Government securities
Other bonds, atocke and securities_ 3.481,202,000 3,466,938,000 3,146,507.000 993,842,000 988,087,000 907,079,000 231,502,000 225,730,000 219,459,000
Total Investments
6,050,183,000 6,061,947,000 5,655.502,000 1,892,271,000 1,905,857,000 1,820,416,000
419,691,000
412,008,0110
403,558,000
20,768,208,000 20,681,187,000 19,601,020,000 6,709,749,000 6,668,280,000 6,370,607,000 1,821,560,000 1.807,753,000 1,738,458,000
Total loam and investments
1,751,259,000 1,716,924,000 1,665,482,000 799,731,000 745,419,000 709.170,000 161,211,000 176,554,000 170,611,000
Eteeerve balances with F. R. Banks
Dash in vault
270,312,000
274.779,000
257,914,000
59,295,000
55,594,000
64,273,000
20,368,000
21,424,000
19,356,000
13,381.386,00 13,254,302,000 12,900,556,000 5.418,642,000 5,288,034,000 5,262,451,000 1,225,078,000 1,213,969.000 1,184,987,000
Net demand deposne
Time deposits
6,212,099.000 6,186,335,000 5,607,618,000 1,010.935,000 1,017,703,000 846,914.000 544.897,000 543,574,000 514,041,000
Government deposits
162,021,000
200,306,000
187,822,000
17,986,000
28,710,000
12,119,000
26,784,000
6,229,000
14,552,000
1,086.297.000 1,105,374,000
Due from banks
88,399,000
90.611,000 109,639,000 140,948.000 137,875,000 164,011,000
Due to banks
3,197,364,000 3,115,232,000
1,156.532,000 1,113,675,000 1.192,923.000 344,273,000 337,812,000 391,953,000
Bills payable and rediscounts with
Federal Reserve Banks:
203,294,000
Secured by C. B. Gov't obligations.170,107,000
40,425,000
136,254,000 39.8850,000
45,650,000
14,525,000
28.229,000
15,153,000
105,271,000
All other
119,733,000
102,518,000
8,998,000
9,540,000
4,512,000
6,663,000
5,208,000
10,848,000
Total borrowings from P.11. bks__
308,565,000
272,625,000
255,987,000
46.848.000
50,162,000
49.985,000
Leans to brokers and dealers (secured by stooks and bonds) made by reporting
member banks in New York City:
For own account
1,131,784,000 1,073,847,000 1,102,844,000
For account of out-of-town banks
1,143,736,000 1.170,133,000 883,587,000
For account of others
842,400,000 871,890,000 578,746,000
Total
On demand
On time.... _ _
..
3.117,920,000 3,115,870,000 2.565,177,000
2,368,550,000 2,377,403,000 1,889,762,000
749.370.000 735.467.000 675.415.000
21,188,000
* Revised
26,001,000
figures.
33,437.000
220
[VOL. 125.
THE CHRONICLE
Quotations for U. S. Treas. Ctfs. of Indebtedness, &c.
$aniters' Gazette,
Maturity.
Wall Street, Friday Night, July 8 1927.
Railroad and Miscellaneous Stocks.-The review of the
Stock Market is given this week on page 206.
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 July 8.
Sales
for
Week.
Range for Week.
Lowest.
Par. Shares $ per share.
Highest.
Range Since Jan. 1.
Lowest.
Highest.
S per share. $ per share $ per share.
RailroadsAnn Arbor
100
Feb 5994 July
10 5914 July 2 5934 July 2 46
Baltimore & Ohio rights_ 69,979 131 July 2 134 July 6 111 July 234 June
Apr 58 June
Buff & Susq pref v t c 100
10 51
July 6 51
July 6 40
Caro Clinch&O ct std 100
10 100
July 5 100
July 5 9834 Feb 10234 May
100
30 84
July 7 84
July 7 7931 Apr 85 June
Cuba RR pref
Duluth S S & A
100 1,000 331 July 7 434 July 6 234 Apr 514 Jan
Mar 734 Feb
Preferred
lii
100 634 July 2 all July 2 4
July
64
July 6 6134 Jan 66
Apr
Erie & Pittsburgh_ _ _ _50
50 64
Gt Northern pr ctf_ _ _100 2,500 8614 July 2 8914 July 6 8534 Mar 9134 May
Jan 299 June
Hocking Valley
100
5027734 July 528334 July 8 200
July 8 169
July
el190
Nash Chatt & St L100 2,300 169
July
July 6 190
Nat Rys of Mex 2d pf 100 1,000 1% July 6 1% July 7 1% July 234 Feb
78,879 411 July 2 4% July 6 4 Jun
4% July
N Y Central rights
July 5 6814 Mar 185
10 170
N Y & Harlem
50
Apr
July 5 170
July 89 June
Northern Pacific ctfs_100 1,100 86% July 7 87g July 7 84
Juay 6 25 June 49
60 49
July 6 49
Pacific Coast 1st pref 100
July
so 80 July 7 80 July 7 80 July 80 July
South Ry M &0ctfs_100
Apr 10634 Mar
10 10134 July 6 101)4 July 6 99
Twin City R T pref_ _100
Industrial & Misc.Apr 2334 June
10 20
July 8 18
July 8 20
Albany Pert Wrap Pap.*
July 6 96 June 10034 Jan
2 96
July 6 96
100
Preferred
200 9034 July 2 9034 July 2 9031 July 108
Feb
Amalg Leather pref_ _100
July 6 90
1 103
July 6 103
Jan 103
July
Amer Chicle prior pref_*
2,700 334 July 6 4
July 6 331 June 414 June
American Ice rights
200 73 July 7 75
July 8 6214 June 9011 Jan
Am-La F FE 7% pf_100
July 5 3834 July 2 38 June 4331 June
• 5,900 38
American Piano
July 2 9711 July 11011 Mar
340 9711 July 7 100
100
Preferred
800 234 July 8 234 July 8 2% July 2% July
Bangor & Aroostook rts_
100 90
July 5 95
July 6 80
Jan 95
Amer Shipbullding_ _ _1
July
100 9994 July 2 9934 July 2 9414 Jan 10134 June
American Snuff pref _100
July 8 0734 Feb 11314 May
3 10934 July 6 110
Am Type Founders pf100
2,200 7H July 5 8% July 2 734 July 1234 May
Rights
July 2 43 July 8 2534 Apr 43
Am Writ Pap pf ctfs_100 5,300 38
July
100 434 July 7 434 July 7 434 Ma
Autosales
534 June
1011434 July 811434 July 8 1434 Jan 119
Beech Nut Pack pf B.1
Mar
170 64
July 5 68
July 8 44
Blumenthal & Co pf_ 100
Jan 72
May
H Apr 134 Feb
200
British Empire Steel_100
14 July 5
% July 8
British 2d pref. _1
300 1
July 7 114 July 5 1
Apr 331 Feb
July 811834 July 8 09
Brown Shoe pref
100 200 118
Feb 120 June
Byers & Co pref
100
4011034 July 7 11111 July 7 0534 May 11131 July
Rights
15,520 1
July 2 1% July 7
15 June 234 June
Cent Alloy Steel pref..100
100 10814 July 8 108% July 8 0614 Jan 10914 June
* 10,200 66
July 2 6814 July 7 6431 June 7631 June
Chesapeake Corp
July 2 39
Chicago Yellow Cab_ _ _*
60 39
July 5 41
Apr 45
Mar
July 2 41
100 49
July 2 49
May 4934 Apr
City Stores class A_ _ *
Class B
*
300 4434 July 6 44% July 6 4114 Apr 4834 June
40 Jun 4334 June
Conde Nast Pub
• 3,500 4031 July 7 43 July
July 8{107
July 8 111
10 111
Cushman's pf (7%) _100
Apr 111
July
300 116
July 7 11614 July 6 10534 Jan 11814 June
100
Deere & Co pref
120 107
July 6 101
July 7 108
Jan 108
Devoe & Reyn, tat pf 1
July
200 10
July 7 1011 July 6 9
Jan 1534 May
Elk Horn Coal Corp_ _*
100 88
July 8 88
July 8 88
ELsenlohr & Bros pf_ _100
July 9594 Feb
Equitable Office Bldg•_ _ 10,600 8851 July 8 9111 July 5 8794 Jun 9214 June
• 100 13% July 8 1334 July 8 1214 Jan 1434 May
Fifth Avenue Bus
10 113% July 8 11311 July 8 10914 Jan 11411 Feb
Franklin Simon pref _100
100 43
July 7 43 July 7 3534 Ap 4311 June
Gen Gas & Elec class B_*
July 7 94
July 21 88
Glidden Co prior pre1.100 1,160 90
May 101
June
July 2 100 July 21 9934 Jan 10834 Mar
10 100
Gulf States SU 1st pf_100
July 71 2211 May 27
20 27
July 7 27
Hackensack Water_ _ _25
July
2
10 2734 July 8 27,1 July
2511 Mar 2931 May
Preferred A
Helme (G W)pref._ _100
140 127
July 6 130
July 8 11831 Jan 130
July
10 95
July 895
July 81 92
Indian Motorcycle pf.100
Jan 96
Apr
July 8 120
July 61 109
1
30 118
Jot Silver pref
Mar 121
June
4% July 2 434 July 8. 4
July 434 July
Int Tel & Tel rights
July 5105
July 5! 105
10 105
Island Creek Coal pref.1
May 10511 Apr
July 769 July 7 59
*
100 69
Jan 7434 Mar
Kress Co new
5
50 40
July 740 July 7 34
Kuppenheimer
Jan 49
Mar
July 6107
July 6 105
10 107
Preferred
100
Jan 108
Mar
July 7 95
6010534 July 6107
100
Jan 130
Laclede Gas pref
May
34 June 214 July
34,225 114 July 5 234 July 8
Lambert Co rights
July 863 July 8 55
10 63
Mar 75
McCrory Stores cl A _•
Jan
20010234 July 810234 July 7 97
Mar 11634 Jan
McCrory Stores Pr_ _100
July 518034 July 7 124
J . 182
• 1,100170
May
Macy Co
July 2 3834 July 2 38
300 38
July 46
100
Feb
Manati Sugar
July 564 Julys 64
July 77
100 64
100
Feb
Preferred
July 45 June
Mandel Bros
• 600 43 July 7 4434 July 8 43
July 6 119
July 6 120
Jan 120
60 120
May
Manhattan Shirt pref 100
Apr 100
40 9934 July 8 9914 July 8 98
Apr
Milw El Ry Lt & Pr_100
July 8 80
July 5 102
Jan 102
290 98
July
Mullins Body pref._100
July:8 10834 July 7 0434 June loog May
Nat Lead pref B_ _ _100 1,800 107
July 6 115
July 6 1414 Jan 120
70 115
May
Nat Supply pref
100
2,270 3034 July 6 3134 July 5 3014 Jun 3814 June
Nat Surety rights
July 5 5211 July 7 4791 Jan 6231 Mar
120 50
Northwestern Teleg_ _50
20 3714 July 5 3715 July 5 3411 June 75
Jan
Norwalk T & Rub pf_100
July
10231 Mar 110 June
170 10931 July 2 110
Oil Well Supply pref 100
July 6 92
July 6 81
92
Jan 9934 May
1
100
Omnibus Pr A
July 7 5231 Jan [131
July 7 58
58
Feb
Outlet Co
• 1
Jan 11014 July
10011034 July 711034 July 7 107
Preferred
100
Jan 120
1011734 July 511734 July 5 115
May
Owens Bottle pref.. 100
Mar 145 June
July 5 13834 July 7 124
58,135
Pacific Tel & Tel_ _ _ _100
911 July 6 8 June 12 June
i,00q 8 July
Pattie Exchange new.
July 210334 July 5 10014 Apr 106
May
40 103
Penick & Ford pref 100
July 5 47
Jan 5614 June
July 5 52
Phillips Jones Corp.... _*
tool 52
Apr 83
Mar
10 79
July 8 79
July 8 74
Pitts Term Coal prof.100
Porto-Ric Am 'rob A.1
100 7431 July 7 7434 July 7 7431 July 9194 Jan
Feb 59
Apr
Prophylactic Brush CO..'
10 5734 July 6 5734 July 6 55
May 19334 May
July 2 184
July 7 175
Pullman Co ctfs
100 2,600180
Purity Bakeries preLl
300 10814 July 710834 July 7 10111 Jan 10834 July
July 7 97
May 108
July
Reid Ice Cream pret..100
200 0514 July 7 106
July 5 62
July 7334 J an
Reis (Robt) 1st pref _100
100 82 July 5 62
July
5 13411 May 165
July
Reynolds Tobacco cl A 25
165
July 5
30 165
211 July 6 114 June 234 June
Shattuck (F G)rights._ 7,450 134 July
July 110
Sherwin Wm S pref-100
Jan
July 210531 July 2 105
30
July 6 46 June 4834 June
Snider Packing pref-.100
100 46
July 6 46
So Porto Rico Sug new..'18,300 3534 July 5 3814 July 8 3534 July 4234 May
July 8 134 July 434 May
Rights
42,600 134 July 6 3
Jan 110
Spalding Bros 1st pref100
Mar
1010634 July 510634 July 5 103
united Cig Sts new w 1 10 5,200 3634 July 7 3734 July 7 3634 June 3731 June
3834 July 6 3811 July 6 3834 July 49
Jan
United Dyewood pref 100
July 2 2234 July 7 1411 May 2234 July
U S Distributing new_ _•29,800
100 4,100 91
Preferred
May 9434 July
July 2 9434 July 8 81
July 7 2734 June 20
July
U S Leather cl A w L._ _• 2,900 2734 July 5 29
200 95
July 96 June
July 8 95
Prior preferred w L.100
July 8 95
30 7034July 8 7114 July 8 7011 June 76
Feb
Va Coal & Coke pref _100
340 35
Vulcan Detinning _ _100
July 8 3734 July 6 1634 Jan 42 June
100
10 116
Jan 11814 Apr
Preferred
July 6 90
July 6 116
June 27 June
Warren Fdy & Pipe____' 1,000 22
July 2 2234 July 7 21
1
200
% June 214 May
14 July 5 1
July 6
Wells Fargo & Co
July 2 10034 Jan 108 June
WestPenn P'r6% pr_100 13010434 July 5 108
* No par value.
Ira.
Rate,
Bid.
Asked.
Maturity.
Rate.
Sept. 15 1927-- 334%
Sept.15 1927._ _ 331% 99"ss 100
Mar,15 1928_ 331%
Dec. 15 1827__. 4 14% 100" 100iga Mar. 15 1930-'32 334%
Bid.
Asked.
99"se 100
99"ts 100
99.h, 100
New York City Banks and Trust Companies
Banks-N.Y. Bid Ask
America'..... 350 360
Amer Union*., 225 240
Bowery EsatR 630 645
Bronx 13oros_
535 545
Bronx Nat..... 520 -__
Bryant Park' 215 230
Capitol Nat.
Bank &Tr__
224 230
CentMero.Bk
& Trust Co
310 315
Central
150 155
Chase
485 490
Chatb Phenix
Nat Bk &Tr 437 441
Chelsea Emilio 280 290
Chemical__ _
920 930
Colonials__ 1000 1020
Commerce..... 475 480
Com'nwealth• 725 775
Continental_• 275 _ _.
Corn Exch_ _
670 575
Coamoplans_
330
Fifth Avenue* 22502350
First
32003250
Garfield
430 450
Globe Exch. 250 __
Grace
82 ___
Hamilton..
239 245
Hanover
12801305
Banks,
Bid
Harriman _ _ _.z660
Manhattan •_ 284
Mutual*
645
National City 550
New Neth•cle• 440
Park
540
Penn Excb
170
Port Morris
375
Public
590
Seaboard ___ 905
Seventh
180
Standard ____ 825
State*
575
Trade*
230
United
200
UnIted States* 475
Watib'n Mao_ 750
Yorktown *.._ 140
Brooklyn.
Coney Islands 850
240
Dewey•
395
First
Mechanics"
334
Municipal •_. 342
Nassau
365
People's. _ _ 750
Ask
680
288
_._
554
460
546
177
......
600
915
190
_ _
590
242
210
485
900
150
___
___
440
839
350
885
_
All prices dollar, per akar e.
•Banks marked (*) are State banks. t New stook.
y Es-rights.
Trust Co.. Bid. Ark
New York.
Am Ex Iry Tr. 382 367
Bank of N Y
& Trust Co. 665 675
Bankers Trust 825 835
Bronx Co Tr_ 320 885
Central Union 1100 1115
County
335 360
Empire
434 443
Equitable Tr_ 355 862
Farm L & Tr_ 625 633
Fidelity Trust 328 340
jFniton
505 525
Guaranty Tr_ 486 490
Interstate__ 230 835
LawyersTrust __ _
Manufacturer 865 875
Murray Hill__ 225 235
Mutual(Westcheater) ___ 265
N Y 'Trust__ 653 658
Terminal 'Tr_ 195 205
Times ilquare 143 148
Title Gu & Tr 715 725
IT 8 Mtg & Tr 470 480
United Statea 2150 2180
WeetcheaVrTr 900
_ _.
Brooklyn.
-Brooklyn....,1040 1100
Kings Co__._ 300 2400
w
____ 260 278
s Ex-div. s Ex-stook My.
New York City Realty and Surety Companies.
AU prices dollars per *bars.
I Bid.
Alliance WItyr x50
Amer Surety.I 237
Bond & M G., 340 .
Lawyers Mtge 300
Lawyers Title
& Guarantee 298
Ask.
58 Mtge Bond-243 Nat Surety...
350 N Y Title &
Mortgage._
304
US Casualty_
304
Bid.
148
240
437
325
Ask.
Bid. Ask.
155 Realty ASSOC'
245
(Bklyn)oom 240 250
let pref____ 92
95
444
2d pref____ 88
91
840 Westchester
Title & Tr_ MO
625
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.
-Below we furnish a daily record of the transactions in Liberty Loan bonds and Treasury certificates on the New York
Stock Exchange. The transactions in registered bonds are
given in a footnote at the end of the tabulation.
Daily Record of U. S. Bond Prices. July 2. July 4. July 5. July 8. July 7. July .9.
First Liberty Loan
High
314% bonds of 1923-47_ Low.
Close
(First 3lis)
Total sales in 81,000 units__ _
Converted 4% bonds of{High
Low_
1932-47 (Pint 48)
Close
Total sales in $1,000 units__
Converted 4)I% bondsilligh
of 1932-47 (First Cis) Low.
Close
Total sales in $1,000 units....
Second Converted oiNHIgb
bonds of 1932-47 (First Low_
Second 431s
(Close
Total sales in $1,000 units__
Second Liberty Loan
High
4% bonds of 1927-42_
Low_
(Second 4s)
Close
Total sales In $LOW units___
Converted 434% bondsrigh
of 1927-42 (second
Low_
43Is)
Close
Total sales in $1,000 units__
Third Liberty Loan
High
434% bonds of 1928
Low.
(Third 411s)
Close
Total sales in $LOW units_ _ _
Fourth Liberty Loan
High
434% bonds of 1933-38_ Low_
(Fourth 41(s)
Close
Total sales in $1,000 units_ _ _
Treasury
'High
411s, 1947-52
IL0W
'Close
Total sales in $LOW units_ _
(High
4s.1944-1954
LowClose
Total sales in $1,000 units_.
(High
3915,1946-1958
Low.
Close
Total sales in S1,000 wilts__ _
---- -- ____
------ --- --102"as
102"ss
10277s,
1
--------- 1011100
100
1
100"32
100'n
100".1
194
1002733
100"3t
100"ss
176
103"ss
103"ss
103"ss
112
-----____
____
-- - --
nisiz,,;
10577,,
105on
a
101
101
101
100.1t2 101
101
100"st 100"31 100"3s
100.1tt 100"32 10031ss
80
323
115
33
- ---
---
--- -
--
10-3-- - 16.3--- 16-1;; icii--
102"as 102"32 102"31 102"3s
103
102701, 1037,, 103
30
6
7
6
--------____
-...
------____
HOLD 100
DAY 100
.. 100
--------100
1---- _
100"32 1001032 100"11
100931 100,
3, 100,31
1001‘91 100ntt 1001su
138
105
147
100,,,, 100031 100":
100"32 100273, 100 73
100"as 100"ss 100"a
33
118
153
103"32 103"33 103"32
103"ss 103"ss 103"31
103"ss 1032331 103"ss
58
96
225
1136st 113"3s 1138ss
113,32 113,3s 113.31
113,
,, 113"3s 113.31
4
2
194
108'n 108"3, 108"32
108Tss 108"ss 108"32
108hi 108"32 108"as
2
10
26
____
____
____
____
____
____
1
100"31
100,3s
10010ts
59
160"3,
10027ss
100"as
80
103"ss
103"ss
103"ss
239
113"31
1137ss
113"3,
5
108"31
108111
108"ss
2
105",, 1057,,
105"32 105,
12
105"32 105,at
I
I
Note.-The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
1 1st 314s
10077,, to 1007,,, 11 3d 4148
100"32 to 100"11
6 1st 411s
2 2d 45
100 2d 4118
10075,, to 10078,1
100
(o 100
1000s, to 100,
s,
7 4th 411s
8 Treasury 431s
1030,1 to 10378s,
113
to 113
Foreign Exchange.-To-day's (Friday's) actual rates for sterling exchange were
4.8531@
4.85 3-16 for checks and 4.85 9-16 for cables. Commercial on banks,sight,
4.853-4: sixty days, 4.81 5-16; ninety days, 4.796
/s; and documents for
payment, 4.8131. Cotton for payment, 4.8531, and grain for payment,
4.85li •
To-day's (Friday's) actual rates for Paris bankers' francs were 3.9131
®
3.9131 for short. Amsterdam bankers'guilders were 40.04(4)40.05 for short.
Exchange at Paris on London, 124.02 francs; week's range, 124.02 high
and 124.02 low.
The range for foreign exchange for the week follows:
Sterling ActualChecks.
Cables.
High for the week
4.85 9-16
4.8534
Low for the week
4.8531
4.8531
Paris Bankers' FrancsHigh for the week
3.9134
3.9194
Low for the week
3.913
4
3.9131
Germany Bankers' Marks
High for the week
23.70
23.703i
Low for the week
23.69
23.70
Amsterdam Bankers' GuildersHigh for the week
40.0531
40.0734
Low for the week
40.04
40.06
221
New York Stock Exchange -Stock Record, Daily, Weekly and Yeariy
OCCUPYING St t PAGES
For sato. during rias stook of stocks usually Inactive. sae preceding page
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
July 2.
Monday,
July 4.
Tuesday,
July 5.
Wednesday, Thursday,
July 7.
July 6.
Friday,
July 8.
$ per share $ per share $ per share $ per share $ per share $ per share
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
Shares
PER SHARE
Rang. Since Jan. 1 1927
On basis of 100-share lots
Lowest
Highest
$ per share
$ per share
PER SHARE
Range for Previous
Year 1928
Lowest
Par
Railroads.
17914 18014 11.900 Atoll Topeka & Santa Fe_ _100 16134 Jan 6 18638 Apr 23
18012 18138 18058 18134 17934 181
17938 180
101 101 *101 10134 10118 10118
500 Preferred
•
101 101
100 0938 Jan 5 103 Apr 25
*101 102
192 19478 19134 19438 14,600 Atlantic Coast Line RR___100 1744 Apr 13 205 Jan 3
18614 19112 19012 193
18412 185
33,200 Baltimore & Ohio
114 11478 11434 11658 11534 11612 11512 116
100 10612 Jan 4 12478May 31
11414 11412
200 Preferred
7912 7912 *7812 7912 *7812 7912 *7812 791,
100 7314 Jan 3 83 June 7
79
79
80
7934 80
79
1,400 Bangor & Aroostook
7912 7912 80
80
*7812 SO
50 44 Jan 8 10312May 27
11312 11312 11334 11334
113 113
130 Preferred
*11234 114
100 1014 Jan 10 122 June 22
114 114
5818 5812 58
5914 5818 5834 6,600 Bkln-Manh Trac v t o_No par 58 July 6 7072 Jan 20
5814 58
•5818 587s
8212 8312 8214 8214 2,000 Preferred v t a
84
8312 84
84
.
8312 84
No par 8214July 8 88 Jan 4
gll Jan 25 1518 Jan 7
958 958 *912 934 0912 934
912 912
300 Brunswick Term St Ry 5e0_100
*914 934
*9012 9912
*91
981 *9012 98
*9012 9812 *95
98
Buffalo Rochester & Pitts_100 8014 Jan 8 115 Mar 10
*6012 6234 *6012 6234 *6012 6234 6012 60,2
10 Canada Southern
*59
6234
100 59 Jan 18 6214May 11
17978 18014 179 18058 2,900 Canadian Pacific
17712 17712 178 179
17658 177
100 185 Jan 6 19212 Feb 28
320 320
500 Central RR of New Jersey_10 285 Jan 4 348 June 1
z325 331 *325 330 *320 332
*310 325
178 17938 177 17814 7,700 Chesapeake & Ohio
17778 17812 179 180
177 17718
10 15134 Jan 25 190 May 26
958 10
912 97s
938 958 11,200 Chicago & Alton
978 1014
1018 1038
100
434 Jan 8 1058June 21
1638 1718 33,700 Preferred
1714 1814 1714 1818 1612 1778
1758 1858
100
74 Jan 5 1858July 2
4714 4938 21,200 Chic dr East Illinois RR
4434 45
4412 4578 4534 50
4334 4478
100 3012 Jan 10 50 July 7
7434 7738 7812 8058 7714 8078 7814 7912 50,900 Preferred
75
100 43 Jan 6 8078 July 7
73
1758 1838 1712 1778 9.000 Chicago Great Western__ _100
1758 184 1734 18
1834 1734
812 Jan 6 2212May 2
3712 384 3712 3814 3714 3914 3712 3834 25,300 Preferred
3578 3712
2314 Jan 7 4478June 2
16
16
1634 1718 164 161
16
17
7,400 Chicago Milw & St Paul__ _g
1634 1634
9 Jan 4 1778June 24
*1512 16
16
1518 1512 1534 16
16
3,500 Certificates
1538 . 154
9 Jan 4 1714 Apr 6
100
3178 3258 3212 3312 32
3112 32
3258 3114 32
24,300 Preferred
100 1858 Jan 3 3458June 23
3014 3012 2914 30
2934 3012 3012 31
10,400 Preferred certificatee
294 294
100 1878 Jan 3 3278June 23
8558 8758 8714 88
86
8714 8558 861 20,100 Chicago & North Western_100 7838 Jan 27 9212June 6
8434 8538
•13212 13434 *13212 13434 13412 13412 *13212 1343
*13212 13434
100 Preferred
100 12414 Jan 3 139 May 23
114 115
11412 11512 11412 115
11318 114
11312 11458
20,500 Chicago Rock Isl & Pacific_100 6812 Jan 4 11512July 5
*10612 108
100 7% preferred
10778 10778 *10712 10814 *10714 10814
*10634 108
100 10214 Jan 4 11114June 2
10012 10012 10058 10058 10012 10078 10012 1001
1,500 8% preferred
*10014 10034
100 9514 Jan 28 10378June 2
120 120
122 122
*11712 120
121 121
300 Colorado .8 Southern
*11712 120
100 84 Jan 3 135 June 2
'17512 78
7512 7512 *7512 7634 *7512 763
100 First preferred
*7512 77
100 70 Jan 4 7712June 1
*73
84
84
*73
84
84
*73
84
*73
Second preferred
*73
100 68 Jan 14 73 May 271
6878 687s 69
*6838 69
6812 69
69
1,200 Consol RR of Cuba pref
6938 694
100 6812June 21 77 May 6
21434 217
216 2174 21434 21634 21412 216
6,600 Delaware & Hudson
21112 21334
100 17118 Jan 28 230 Juno 6
167
166
166
1,000
164 165 z16212 163
166
Delaware Lack & Western_ 50 1404 Jan 27 173 Mar 23
*16314 168
62
6212 6212 6312 6234 63
6338 6438 3.000 Denv & Rio Or West pref__100 4118 Jan 5 6734June 9
*6112 63
5212 5312 5278 5418 5378 5438 5312 54
30,600 Erie
100 3912 Jan 3 5738June 2
5178 5212
58
5878 583g 5912 5918 5912 59
59
6,000 First preferred
100 5238 Jan 4 6214.May 26
58
5814
*57
59
5834 5712 5712 *57
*57
59
200 Second preferred
100 49 Jan 4 6114May 26
5712 5712
8834 8978 90
9038 8934 90
9014 90
6,700 Great Northern preferred..100 7958 Jan 4 9278June 2
8834 88,
4
1858 1858 1812 1834 *1814 1834 1814 1814
700 Iron Ore Properties._No pa
1818June 30 2314 Feb 4
*1858 19
69
7238 7018 7018 6,900 Gulf Mobile & Northern 100 354 Jan 6 7612May 20
6934 7014 7212 71
674 68
109 109 *108
*10712 108
108 108
600 Preferred
100 105 Jan 14 11214 Apr 27
*10712 108
56
5734 5514 5714 5558 5634 5512 5618 3,800 Hudson & Manhattan
100 4012 Jan 3 6578May 10
*5512 56
*8212 84
8212 8258 83
8212 8212
83
500 Preferred
82
100 78 Jan 6 9012May 10
*80
128 12834 129 12912 129 12912 129 12938 2,900 Illinois Central
12734 12734
100 12118 Jan 10 13114June 9
•127 130 *127 135 *127 130 *127 130
Stock
100 12078 Jan 12 132 June 9
Preferred
*126 130
60 Railroad Sec Series A__1000 74 Jan 4 8014June 21
*78
7912 .78
79
7812 7812 *78
•78 I 8012
7912
3334 3334 3334 3384 3414
3334 *31
500 Int Rye of Cent America...100 23 Apr 20 3412June 27
*32 I 3434 Exchange *32
71
*69
70
70
*68
*69
70
*68
100 62 Apr 29 73 June 2
Preferred
*6712 71
3938 3734 3784 3,100 Interboro Rapid Tran v t 42_100 33 Slay 19 5218 Feb 26
3812 38
3814 38
O37% 3818 Closed- •38
60
6112 6078 6158 6012 6538 644 6678 146 300 Kansas City Southern
100 4114 Jan 4 6678July 8
5912 5978
71
*70
71
7034 *70
*70
Indepen- *70
71
100 6478 Jan 7 7112June 24
Preferred
*6812 70
125 12612 12578 12678 127 1294 12734 130
12434 125
39,000 Lehigh Valley
50 9934 Jan 6 13712June 9
14312 144
144 144
143 144
2,400 Louisville & Nashville
•139 14212 dence Day 14212 143
100 12838 Jan 14 14438May 28
8512 83
110 Manhattan Elevated guar.100 83 July 7 90 Feb 11
834 8512 *83
8314 *8212 8512
*8518 8512
4534 4534 4514 4614 4514 4638 45,8 4518 1,700 Modified guaranty
100 44 June 14 5478 Feb 28
4538 454 Holiday.
*438 5
678June 23
400 Market Street Railway ____100
44 5
*4% 5
*412 6
412 Feb 2
*5
514
*1718 22
*1718 26
•17
27
*1718 22
*1718 26
100 18 Feb 10 2518June 22
Preferred
47
47
46
*4512 46
400 Prior preferred
46
47
47
46
46
100 415* Feb 7 5018June 22
*12
•12
*12
14
17
17
•12
•12
14
18
100 1158 Mar 15 1712June 22
Second preferred
378
378 *34 4
334 418
34 4
358 358 1,400 Minneapolis & St Loui8100
458 Feb 3
138 Jan 13
4218 4378 4334 441
4078 4078
4214 5,900 Minn St Paul.888 Marle_100 27 Jan 6 4538July 7
4538 4538 42
63
63
*61
65
6714 671
1,400 Preferred
6712 671 *66
68
100 50 Apr 28 6712July 6
*6012 63
62
*6012 63
*6012 63
*6012 63
30 Leased lines
6212
100 5814 Mar 25 13338June 2
524 5178 533
5138 5212 52
5118 5134
5012 5278 89,500 Mo-Kan-Texas RR_ ___No par 3112 Jan 6 5612June 17
104 10414 10418 10438 10412 10458 10434 10478 2,465 Preferred
10334 10378
100 9534 Jan 4 10558June 2
5518 5638 5518 5638 5514 5714 5558 564 32,000 Missouri Pacific
54
55
100 3778 Jan 4 62 Apr 23
104 10534 10412 1051 10412 100
10412 10512 22,800 Preferred
103 104
100 9018 Jan 4 1114 Apr 23
*145 15212 *145 150 *145 150 *145 150
*145 15212
New On Texas & Mei1oo100 121 Jan 8 15978June 3
14938 150
14812 14914 1484 150
1494 14934 37,000 New York Central
14814 14812
100 13714 Jan 27 1564June 1
127 13012 127 12934 12712 12834 12612 128
15,000 NY Chic .881 Louis Co-100 8110 June 14 24012Nlay 26
12538 130
10612 10612 10658 10678
10612 10612 *10612 107
600 Preferred
1064 10678
100 102 Mar 8 10978June 15
55
534 5438 5258 5334 70,200 NYNH& Hartford
524 5434 54
5234 5314
100 4138 Jan 4 5858 Feb 16
3638 3712 30,600 N Y Ontario .8 Western
3758 3838 3714 3838 3718 38
3634 3778
100 2314 Jan 15 3912June 18
814 814 *814 9
*8
9
100 N Y Railways prat etts_No par
*8
9
*838 9
8 Stay 24 1534 Jan 14
5712 58
59
6012 5614 5614 2,200 Norfolk Southern
55
57
577s 5878
100 374 Jan 14 6412June 10
183 184
182 184
181 183
18012 181
182 18318 7,200 Norfolk & Western
100 156 Jan 4 18714May 26
.83
84
*8334 84
84
*8334 84
86
*84
90
100 Preferred
100 83 June 23 8612May 6
884 8812 8878 8712 88
8612 874 88
86
86
8,000 Northern Pacific
100 78 Jan 3 9112 Feb 18
16
1712 M1712 1712 1818 1818
*15
20
*16
16
500 Pacific Coast
100 154 Feb 3 2714 Feb 15
6358 6414 6312 64
6338 6334 6358 64
633s 6338
17,400 Pennsylvania
50 564 Jan 3 65 May 28
3814 384 3814 39
3734 38
3614 3612
*3712 38
1,500 Peoria & Eastern
100 20 Jan 25 3934June 7
13018 13034 131 13178 *130 131
•130 132
13018 131
1,200 Pere Marquette
100 11412 Jan 6 14012May 28
9512
*9514 9734
*9514 96
*954 98
9512 *9514 9734
100 Prior preferred
___100 93 Jan 22 9734May 28
94
94
9312 94
94
94
*9312 94
*94
500 Preferred
9434
100 8934 Jan 4 96 May 26
148 15278 15114 15114 149 15014 14814 14918 3,900 Pittsburgh & West V,. 100 12212 Jan 18 174 May 24
14834 1513
11612 11814 11818 11938 11612 119
115 1161
116 11758 23,400 Reading
ao 94 Jan 4 12334June 9
*4112 42
*4112 42
4112 4112 *4112 42
4112 4112
200 First preferred
ao 4012 Jan 13 4212 Feb 16
*45
47
*45
*45
47
47
47
*45
47
*45
Second preferred
50 4334 Jan 12 50 Feb 16
5912 •60
57
57
59
62
5914 60
500 Rutland RR pref
*54
58
100 43 Jan 7 69 May 27
11358 11438 11318 11438 11218 11358 11112 1121
11212 113,
9,100 St Louis-San Franciseo
8
100 MA Jan 6 11714June 2
100 100 •100 104 *101 1041
100 100
200 Preferred A
*9958 101
100 96 Jan 26 101 June 6
8814 8978 8712 8814 8712 91
89
9114 33,300 St Louis Southwestern
8714 88
100 81 Jan 6 93 June 17
*88
89
•
87
*
87
8812
883
4
*87
8714
89
*87
Preferred
100 784 Jan 8 9078June 17
3614 3678 3614 3714 10,400 Seaboard Air Line
3718 3612 37
36
35
36
100 284 Mar 31 4114 Feb 17
39
3978 39
40
3814 39
39,
8 4114 8,600 Preferred
3758 38
100 3212 Apr 28 4334 Feb 4
118 1191 11812 11912 11734 11878 117 118
26,100 Southern Pacific Co
11778 118
100 10614 Jan 28 11912July 5
12678 12712 12612 12738 12714 12814 10,300 Southern Railway
12512 127
12434 12512
100 119 Jan 28 13012Nlay 27
9614 9614 964 9712 *9712 9778 98
98
1,200 Preferred
*9614 904
100 94 Mar 10 9918June 8
9634 99
9512 98
11,300 Texas & Pacific
9778 9934 9778 99
07
98
100 5378 Jan 7 10212June 21
*3212 3412 34
34
*33
3634 36
1,700 Third Avenue
3318 3318
3614
100 30 May 19 41 Feb 8
5,700 Union Pacific
174 1745s 174 17412 17334 17434 17412 1743
17314 174
100 15912 Jan 27 18114May 20
8218 *8218 8214 8178 821
1,900 Preferred
.
8218 8214 82
8218 8218
100 77 Mar 5 8412May 20
7458 7538 7358 7514 73
74
25,600 Wabash
7238 74
7134 7212
100 4012 Jan 4 81 June 9
9714 9712 96
3,700 Preferred A
9678 9712 9712 971
961
9658 96,
4
100 78 Jan 3 101 June 9
*9314 94
94
*93
*0334 94
*94
94
97
*03
Preferred B
100 05 Jan 15 98 June 9
5712 5912 574 583 31,200 Western Maryland
5612 57%
5714 5878 5815 591
100 1334 Jan 6 6778June 9
59
59
*5612 50
Si)
*56
59
500 Second preferred
58
*56
58
100 23 Jan 7 8712June 9
424 4358 41,
*42
8 427
4,200 Western Pacific new
4218 4334 4312 44
4278
100 2518 Apr 26 4712J0ne 22
68
6834 68
6818 691
6712
6712 69
67
68% 4.300 Preferred new
100 55 Apr 26 7838 Feb 7
85 .60
85
*60
85
*60
Wheeling .8 Lake Erie Ry 100 2712 Jan 3 130 Feb 8
85
*60
85
*60
83
83
*80
*80
Preferred
83
83
*80
83
*80
*79
100 4712 Jan 7 97 May 13
9414 9414
72
*68
•112 11212
*160 162
12
•11
34
*32
*3
314
*176 178
812 834
*I
14014
1 14
14078
96
9412 96
69
72
*67
•112 11212 *112
161
161 161
12
•11
12
*32
3412 •32
3,8
314 314
181 18458 18312
858
9
94
*I
14 •1
141 14238 14212
•Bid and asked Prices. s Ex-dividend
9412 9514
06
7314 73
7434
1121 112 112
163
166 160
1114 1114
12
32
341 .
3412
33s 3,
8
3,
8
18478 18312 18878
914
9
914
118
Us •1
1441 14318 14514
z94
*70
112
166
11
*32
338
184
812
118
14212
Industrial & Miscellaneous.
2,700 Abitibi Power .8 Paper.No par
94
1,200 Abraham h Straus____No par
74
112
90 Preferred
100
1687
3,600 Adams Express
100
500 Advance Rumely
11
100
Advance Rumely pref
100
341
1
33
900 Ahumada Lead
191
14.800 Air Reduction, Inc____No Par
6,300 Ajax Rubber. Inc
9
No Dar
11
1,000 Alaska Juneau Gold Min__ 10
14438 50,600 Allied Chemical & Dye.No par
a Ex-rights. S Ex-d1v. 179 shares of Chesapeake Corp. stock.
Highest
$ per share $ per Marto
8.3 Jan 27 9734May 27
6214 Mar 26 824 Apr 20
11012 Feb 1 11312 Feb 30
124 Jan 6 16878July 8
912 Jan 3 1534 Fee 9
3014 Jan 25 41 Feb 9
254June 2
512Mar 5
13412 Jan 26 191 July 8
2 Mar 2
712Jun
1 une 18 13%
18
5
Feb
131 Jan 2 14714June 1
122 Mar
9418 Mar
18112 Mar
8312 Mar
6711 Jan
33 Mar
9778 Feb
5418 Mar
78 Mar
812 Mar
6934 Mar
58
Jan
1464 Jan
240 Mar
112 Mar
414 Sept
618 May
30 Dec
3612 Mar
734 Mar
1614 Mar
814 Dec
714 Dec
1418 Mar
14 Apr
6514 Mar
11812 Jan
4012 Mar
96 Mar
8314 Mar
52 Mar
62 Mar
59
Jan
8834 Nov
15014 Mar
172 Dee
102 Dec
26212 Jan
10934 Sept
7378 Aug
46
Feb
103 Dec
7778 Dee
8934 Dee
184 Nov
8734 July
61 Jane
1704 Dee
305
Jan
17338 Sept
1158 Feb
184 Feb
37 Feb
5134 Feb
12,8 Sept
314 Sept
1412 Jan
14
Jan
24 Aug
2358 Aug
8334 Sept
12612 Apr
7114 Dec
108 Dec
98 Noy
9614 Oct
74
Oct
72 Sept
7212 Dec
18312 Sent
129 Mar 15312 Jan
3712 May 47
Jan
2212 Mar 42 Dee
3334 Mar 5514 Dee
30 Mar 5014 Dec
6812 Mar 8418 Dec
18 Dec 2714 Feb
254 Apr 4114 Sept
95 Mar 10912 Sept
3458 Jan 4112 Des
6734 Mar 80 Dec
11312 Mar 131 Sept
11512 Mar 12912 Sept
7114 Jan 77 June
24 Dec 31 Feb
62 Mar 66 June
2412 Jan 5334 Dee
3414 Mar 5138 Sept
6058 Mar 6838 Sept
7512 Mar 106 Dec
118 Mar 144 Sept
84 Mar 9234 Apr
384 Jan 614 Mai
418 July 10 Feb
1912 Oct 40 Feb
394 June 5138 Feb
1134 Oct 2212 Feb
14 Dec
34 Jan
2578 Dec 6212 Feb
50 Dec 79 Feb
60
Oct6678 Feb
294 Oct474 Feb
82 Mar 9638 Dec
27 Mar 45 Sept
7112 Mar 95 Sept
120 Mar 13212 Jan
117 Mar 14712 Sept
130 Msr 20412 Sept
93 Mar 106 July
3058 Mar 4838 JUI7
1934 Mar 284 Feb
8 Jan 2014 Feb
2778 Apr 4438 Sept
13914 Mar 17078 Oct
8312 Nov8518 Aug
6534 Mar 824 Aug
Oct48 Jan
15
4858 Mar 574 Oct
1578 Oct2634 Jan
67 Mar 122 Dec
79 Mar 96 July
7034 Mar 9178 July
85 Mar 13514 Dec
79 Star 1014 Dec
3934 Dec42 Apr
40 Mar 4534 Dee
42 Apr 6114 Aug
85 Mar 10312 Dec
8312 Apr 9712 Des
5712 Mar 74 Feb
72 Mar 804 July
2712 Mar 51 Dec
3112 Mar 4838 Feb
9618 Mar 1124 Dec
103% Mar 13114 Sept
8712 Apr 9512 Aug
4218 Mar 6158 Jan
1312 Jan 43 Apr
14112 Mar 16838 Oct
7434 Jan 8114 Aus
3372 Star 52
Jan
68 Mar 7834 Jan
57 Mar 72 Jan
11 Star 164 Jan
1838 Mar 2438 Sept
2712 Dec 3914 Jan
72 I)ec 8634 Sept
Jan
18 Mar 32
37 Mar 5012 Jan
7034 May 98 Sept
43 Stay 72 Dec
10418 Mar 112 Dec
9978 Mar 138 Sent
8 Dec 22 Sent
284 Dec 6534 Sent
918 Jan
434 Nov
10714 May 14634 Dec
74 Oct6 Feb
7g Oct2 Jan
100 Mar 1484 DM
New York Stock Record -Continued-Page 2
222
roe salsa during the week of •tocks usually Inactive. see second page preceding
HIGH AND LOW SALE PRICES-PER SHAR', NOT PER CENT.
Saturday,
July 2.
Monday,
July 4.
Tuesday,
Wednesday, Thursday,
July 5. I July 6.
July 7.
Friday,
July 8.
Sales
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
Range Since Jan. 1 1927
On Oasts of 100-share lots
Range for Previa=
Year 1926
'Lowest
Lowest
Highest
Highest
$ per share $ per share $ per share $ per share $ per share IS per share Shares Indus. & Miscel. (Con.) Par g per share $ per share $ per share $ per share
_
•12218
_ _ 12212 12234 *12278 - _
300 Allled Chemical Sr Dye pref_100 120 Mar 11 12234July 7 11834 Mar 12234 De(
12218 12218 "
10614 10612
_10614 10812 10714 1083
-1,600 Allis-Chalmers Mfg
- - 8 *10612 10712 *105 10612
.1ey 31
100 88 Jan 25 111341,
7814 Mar 9438 Jar
Preferred
100 109 Feb 9 11212 Apr 21 105 Apr 11112 Dec
1612 1678
1678 1674 1612 1612 *1034 1612 1618 1618 1,600 Amalgamated Leather _No par
15381fay 20 2418 Feb 11
1434 Oct 21 Sept
.3018 3014
4,100 Amerada Corp
30
3038 2934 3018 2978 30
2978 30
No par 274 Apr 28 3738 Feb 7
2414 May 3278 Allii
*1212 13
11
11
2,000 Amer Agriculture I Chem_100
1214 121 1
1214
124 1214 12
818 Apr 6 1434 Feb 14
9
Oct 344 Jar
4112 4112
2,100 Preferred
38
39
41
394 40
4018 41
*40
100 2814 Apr 6 5134 Jan 10
3538 Oct 9612 Jan
*56
5714
6114 6314 7,200 Amer Bank Note
5712 5734 5734 587
5978 61
10 41 Jan 6 6314July 8
3438 Mar 46
Oct
*5834 5912
60
210 Preferred
5914 5914 5938 6014 6014 6014 60
50 5612 Jan 4 6014July 8
55
Jan 5812 July
*20
2014
1,150 American Beet Sugar__No par
*20
2014 2014 2014
20
20
2014 20
1818 Apr 28 2334 Mar 14
2012 Sept 3834 Feb
400 Preferred
51
*50
5234
51
5012 5034 *5012 51
5034 5034
100 48 May 4 6018 Jan 3
55 Nov 83 Feb
1712 1818
1614 5,000 Amer Bosch Magneto__No par
1618 1612 16
1712 1818 1678 1714
13 Jan 20 1838 Feb 28
16 May 3438 Jan
39
39
3912 4,200 Am BrakeShoe & F new No gar 3512May 2 4314June 8 ---- --__ ---- ---3812 39
3834 3938 3912 3958 39
*120 125
Preferred
•120 125 *120 12412 *120 12412'120 12412
100 117,4 Feb 7 128 Mar 12 11014 Mar 12814 Feb
1418 1412
14
1412 1438 1412 1312 1414 1034 1314 13,700 Amer Brown Boyer' El_No par
1034July 8 3912 Jan 5
3014 Mar 50 Aug
200 Preferred
*55
63
53
5612
*5212 55
*55
62
100 5014June 17 98 Feb I
62
*55
8612 Mar 9718 Jan
5438 5638
25 4338 Mar 31 5812July 6
57
5634 5812 5712 5814 5718 5814 212,100 American Can
56
3878 Mar 6318 Aug
*13034 13112
700 Preferred
13134 13134 *13034 13134 13034 13112 13012 132
100 126 Jan 14 133 June 7 121
Jan 1304 Dec
4,900 American Car & Fdy___No par 97 July 5 10914May 27
98
9812 99
Q814 9712 9838 9812 99
9812
97
911* Mar 11478 Jan
150 Preferred
128 128
•128 12912
128 128 *12712 12912 *12712 128
100 12618May 12 13434June 8 12012 Oct 13014 Dec
5614 2,000 American Chicle
57
No par 36 Jan 26 577 July 1
57
57
5738 5612 5634 5534 5612 *56
31
Oct 51
Jan
1338 1378
1234 1312 18,100 kmer Druggiets Syndicate_10
1312 14
1314 1312
1314 14
938 Apr 20 1514June 9
414 Jan
1038 Aug
14278 14278
143 14314 143 14538 14434 14512 14312 14434 7,000 American Express
100 127 Jan 17 14512July 7 10578 Mar 140
Jan
23
2214
2314
12,200
2212
Amer
&
For'n
227
8
*21
22
Power_No
2112 2214
par
1878 Feb 17 25,2 Mar 29
2112
1414 Nov 4238 Jan
9978 998
800 Preferred
No par 84312 Feb 15 102 June 22
10034 10034 10018 10018 9912 100
*100 101
79
Oct 98 Feb
1038 1,100 American Hide & Leather_100
*10
1038 1038 10:4 1012 1014 1014 *10
1014
74 Apr 26 1012 Feb 8
7 May
1712 Feb
Preferred
6638 65
6512 3,500
100 48 Mar 1 5612July 6
*6412 65
6412 6538 6512 6612 66
3312 May 6714 Feb
4478 31,800 Amer Home Product,._No par 3038 Jan 3 48 July 6
4378 4678 43
41
4178 42
4134 4134 48
234 Oct 3038 Dec
1,300 American Ice
132 13218 13138 132 *12114 127
132 132
100 114% Jan 26 13714May 10 109 Mar 136 June
132 132
800 Preferred
99112 9112
95
95
95
100 84 Jan 7 96 May 7
95
95
95
*9414 95
8112 Oct 8634 June
51
5014 5078 5,200 Amer Internet Corp_ _ _No par 37 Mar 23 5512June 7
4934 50
4934 5014 50
4934 50
3134 July 4634 Feb
97 Dec 157 Jan
1,400 American La France F E___10
512 6
512 53
4 June 4 10 Jan 3
*512 578 *512 578
*512 578
100 20,8 Apr 5 34 June 10
3028 3078 3038 3138 30% 3078 5,600 American Linseed
30% 31
3012 3012
2538 Oct 5278 Jan
2,000 Preferred
6518 6512 6512 66
100 4638 Mar 19 7478June 10
6412 6412 6478 65
64
64
6734 Oct 87
Jan
107 107
2,300 American LocomotIve_No par 103 June 30 116 May 18
10558 10538 106 10712 107 107
10558 10558
9014 Mar 11978 Jan
12134 12134 122 122
400 Preferred
100 11912 Feb 23 124 Apr 2 116 Aug 12414 Dee
*12112 12312 12134 122
.12112 123
Amer
Machine
89
&
88
Fdy_
1,200
_No
88
883
4
*88
88
par 7314 Jan 3 8912July 2
89
89
6514 Oct 8012 Aug
8712 8912
Preferred
*14434 149 *14434 149 *14434 149 *14434 149
100 12518 Jan 6 149 Mar 29 114 July 125 Dee
.14434 149
3814 3814 *3012 3912 *3814 3912 *3818 3834
200 Amer Metal Co Ltd___No par 3814July 5
44 Jan 20
4314 Dec 574 Feb
*3814 39
Preferred
100 108 Jan 6 112121k1ay 17 11312 Apr 120 Feb
*108 110 *10814 110 *108 110 *10814 11018
.108 110
6212 4,900 km Power & Light____No par 54 Jan 27 67 June 3
604 6238 6112 6238 61
61
60
*60
5034 May 7212 Sept
6012
12412 12878 11,900 American Radiator
12518 12612 124 126
12218 125
25 11012 Jan 21 131 May 26 10114 May 12238 Aug
121 122
1,300 Amer Railway Express____100 8712 Apr 4 105 June 24
99
*100 10312 102 10312 *100 10212 99
0101 10312
7738 Mar 90 Dee
6078 5918 6478 5812 6278 13,100 American Republice___No par 3518 Jan 4 6212June 10
5618 5712 56
57
56
3978 Nov 74
Jan
44
*44
44
4412 3,700 American Safety Itasor____100 43 June 27 6112 Mar 28
45
4312 43
43
43
43
42 Apr 7034 Aug
4812 43,500 kin Seating v t c
No par 43%June 28 4912July 6
4838 4912 4734 4938 48
4714 49
4614 4758
438 458
412 412
900 Amer Ship & Comm
438 458
412 412
No par
3'2 Mar 23
634 Jan 7
412 412
538 Dec 1178 Mar
15314 15434 15458 15538 15458 15514 x152 15314 16,100 Amer Smelting dr ReflnIng_100 1324 Jan 25 16718June 2 10938 Apr 152 Aug
15314 15358
12458 125
12538 12558
12438 12458 125 125
900 Preferred
100 11914 Mar 16 12678May 4 11278 Mar 12238 Dee
12434 125
129 129
12812 12914 *12812 129
900 American Snuff
12714 128
'
1 126
100 11938 Jan 17 1304, Mar 10 12134 Oct 165 Feb
12734
*4512 4614 45
4518 4514 3,275 truer Steel Foundries_No par 4112 Apr 29 4834June 20
4578 4514 46
46
46
40 May 47 Aug
11212 11278 *111 113
400 Preferred
11014 11014 *11012 113
0110 113
100 11014July 5 115 Jan 13 11014 Sept 115 Feb
87
8758 874 8734 8838 89
8912 4,100 1mer Sugar Refining
86
8518 86
100 79 Jan 25 9534May 28
6514 Apr 8714 Nov
*110 111
1104 11038 *11038 111 , Ill 111
300 Prefeta..1
110 110
100 10778 Mar 3 11612May 26 100 June 11012 Nov
Stock
10,500 Lm Sum 'lob v t c_ __No par 4112 Jan 3 5838 Apr 16
57
5712 5634 5734 5614 57
5614 57
558 57
2914 Aug 44 Dec
*3012 3178
--- ---- _ -- - -_ _ kmer Telegraph & Cable_ _100 26 Apr 1 34 May 9
*3012 3178 *3012 3178 ---2512 July 4118 Feb
- - 4 6,600 Liner Telep & Taloa
100 14914 Jan 3 17238 Apr 8 13938 June 151 Dec
16314 16438 Exchange 164 16412 16334 16412 163 16438 16234 1633
13612
13614 13614 13514 13514
13412 13412 13578
1,400 Lmerican Tobacco com____50 120 Jan 7 13912May 20 1115* Mar 12434 Sept
133 133
3,800 Common Claes B
513 11914 Jan 5 13834May 20 11018 Mar 124 Sept
Closed- 134 13578 13578 1367s 135 136 *135 136
1132 134
500 Preferred
112 112 *112 11212 11212 11234 112 112
100 110% Jan 4 11578 Mar 9 1064 Jan 113 May
112 112
129 130 *127 12978
700 1merican Type Founders-100 125 Jan 7 146 Feb 18 114
128% 12834 Indepen. *12514 129 •12534 129
Jan 135 Feb
9138 6,300 'm Water Works & Eleo___20 6214 Jan 3 98 June 6
9238 91
3118 9158 91
9214 91
91
91
434 Apr 74 Jan
1st preferred (7%)
111 111
11118 11118 11114 11114
100 10412 Mar 1 11134June 22 101 12 Mar 10814 Jan
1,100
111078 111 dence Day *1107 Ill
1812 1934 1938 1912 1914 1914 1834 1914 4,300 L...]erican Woolen
100 1612June 7 3338 Jan 5
1918 19%
19 June 4278 Jan
47% 48
Holiday.
5,400 Preferred
4812 4912 4812 4812 4818 49
100 467*June I 8612 Jan 7
4758 48
66 Apr 9014 Dee
1412 1658 1512 1534 1534 1578 4,300 km Writing Paper ats_No par
14
15
978May 26 1658July 8
*1314 15
200 Amer Zinc, Lead & Smelt___25
8
8
*7
8
8
*7
*714 8
612June 27 1014 Feb 17
7
7
1218 Feb
Si,May
40
41
41
4112 40
500 Preferred
4012 4012 *40
25 39 June 28 5114 Feb 18
41
*40
20 May 54 Dee
4334 44
4312 4378 4318 4334 4314 44
6,900 Anaconda Copper alining_50 4114June 27 4912 Jan 12
4113 Mar 517 Aug
4234 43
347 June 4414 Jan
300 Archer. Dan'Is, Micird_No par 38 Mar 12 42 Jan 18
*3934 4012 3912 3934 *3912 4014 *3912 4014
*3934 41
10734 10734
109 109 *10712 110
*10712 109
60 Preferred
100 106 Jan 4 109 July 6 100 Mar 108
0108 109
Oct
864 8638 87
900 krmour & Co (Del) pref
8678 87
87
87
87
100 86 Apr 13 9618 Feb 16
88
*87
9014 May 97% Jan
1018 *978 10
10
2,500 amour of Illinois Class A__25
814May 4 157 Jan 7
934 97
105* 10
1318 May 2512 Feb
95* 934
618 614
6
614 *614 638
1,500 Class B
614 614
25
518May 5
918 Jan 6
618 618
534 May 17
Jan
*6712 68
*66
68
68
*64
68
68
100 Preferred
100 00 Apr 13 8614 Jan 27
*64
68
80 Apr 03 Feb
347 July5
34
3478 3312 3438 33
3314 7,600 1rnold Constable Corp_No par 21 Apr 1
3334 33
3234 3414
18
Apr 3134 Jan
29
*28
2934 30
29
ns 29 1,500 at Metal Construction__ _10 22 Jan 11 32 June 24 194 Jan 2334 Oct
29
2912 30
*4634 47
4634 4678 *4612 4834 4578 4612
No par 4578July 8 5434 Jan 5
600 Litloom Corp
47
47
464 Sept 6312 Jan
11214 11214 *112 11314 11212 11212 *110 113
100 111 141May 31 113 Feb 8 108 Mar 113 Dee
20 Preferred
1112 113
4138 4138 4118 4178 4112 42
*4112 42
No par 3912 Feb 9 447 Apr 11
1,400 Lasoc Dry Goods
4118 4138
3714 Mar 5478 Jan
*102 104 *102 104 *102 104 *102 104
lst preferred
100 9712 Mar 3 104 May 23
96 Mar 10212 Jan
'102 104
241 preferred
*105 107 *105 107 *105 107 *105 107
100 105 Mar 23 109 June 9 102 May 110 Dec
'105 107
Lasociated Oil
*40
*40
43
44
*40
*40
45
48
25 42 June 14 5014 Feb 19
45
444 Jan 60 Mar
*40
*3612 37
37
3778 *3612 38
1,700 Lt1 CI& WISS Line __No par 3038 Mar 25 42 Jan 5
365* 3818 *3612 38
29
Oct 6838 Jan
100 2934 Mar 25 4114June 7
3614 3512 3512 3512 3534 *36
39
2.000 Preferred
*36
38
3314 Oct 5614 Jan
*36
100 107 Jan 28 12538June 10
111 11234 11278 11412 11238 11434 11112 11334 10,300 ktlantle Refining
97 Mar 12838 May
111 11112
Preferred
*11614 118 *11814 118 *11612 118 *11612 118
100 11512 Feb 1 118 Mar 11 11518 Oct 120 June
'11612 118
67
*65
*65
Ltlas Powder
66
66
*65
66
No par 5812 Mar 17 70 June 9
*65
54 Mar 64 Nov
66
*65
20 Preferred
*
_ __ *10512 _ _
105 105 *10512 ----105",
100 98 Jan 6 107 July 2
94
Jan 974 Dee
107 107
*738
712
100
738
*73
8
738
812
Tack
*738
8
12
Sas
No par
714June 25 1218 Apr 7
8
Oct 1712 Jan
*738 838
300 unix], Nichols&Co vLo No par
412 412 *412 5
*434 478 *412 5
414 Mar 22 1014 Jan 3
*412 5
74 Oct 28
Jan
28
*2818 37
200 Preferred
ns 37
28
38
*28
100 28 July 6 61 Jan 5
54 Nov 93 Jan
*28
35
236 23912 23518 238 118,500 aldwin Locomotive Wks_100 14318 Jan 18 23912July 7
230 23412 23334 238
23034 23334
9238 Mar 16734 Dec
2,000 Preferred
*11812 11912 11912 12312 12312 12514 125 125
100 116 Jan 14 12514J11ly 7 105 Mar 11914 Nov
11812 11912
10878 10878
600 . amberger(L) & Co pref 100 10634 Mar 30 11012May 10
10878 10878 10878 10878 10878 109
10834 10878
700 . arnett Leather
52
5012 5112 *5014 5112
*51
No par 40 Jan 6 597 Feb 9
*5114 52
5212
52
2614 2612 25$8 2618 15,800 . amide!' Corp elms A
263* 2614 27
26
25 2318 Apr 29 3512 Feb 26
2312 May 3312 Jan
2658
26
*25
400 Class B
2534 2538 2538
26
2512 2512 26
25 22 Apr 30 321 2 Fob 28
2212 Oct 3912 Jan
*2514 26
No par 41112 Jan 25 8012July 7
7312 7534 7534 7878 7834 8012 7834 7978 8,100 1 auk Cigars, Inc
39 Mar 5538 Nov
*7212 7312
16
16
200 1 eacon 011
No par
1514May 31
1814June 7
1612 1612 *1534 1612 *1534 16
____ -- -- ---- ---•1534 1634
200 1 eech Nut Packing
*5212 5314
20 5014 Apr 29 607* Feb 15
5214 Oct 717 Feb
*5112 5212 *5112 5212 5212 53
*51
5212
1814 1512 1712 1712 1752 3,200 1 elding Ilem'way Co__No par
26 Dec 3934 Jan
1512July 7 2714 Jan 7
1818 1818 18
*1818 1812
4838 9,700 1 ethlehem Steel Corp
48
4812 49
371 May 6118 Sept
100 4334 Jau 27 5614 Apr 7
4718 487* 4812 49
47
4738
100 10434 Jan 3 11112June 2
99 June 10578 Dee
10812 10812 10812 10812 10834 10914 10812 10938 1,100 Preferred (7%)
10812 109
1 loomingdale Bros___No par 34 June 15 4138 Jan 11
3634 *3514 3634 *3412 37
28 June 42 Dec
*3418 3612 *35
*3418 3612
60 Preferred
100 1091* Jan 20 1134 Apr 18 10414 June 110 Dee
*11112 11212 11012 11012 *11012 11112 11112121'2
11012 11112
1,000 1 Ion Anil, class A
57
5312 Doc 584 Dee
5714 5714
No par 634 Jan 5 5934June 1
57
57
57
56
56
*5614 57
77
No par
4,8 Mar
712 712 4,300 1 00th Fisheries
838 Apr 1.1
934 Jan
758
614 Jan 28
778 778
758 8
7% 738
1st preferred
*49
54
53
3434 Oct 5113 Jan
1,900
100 45 Jail II 5714May 27
51
5534 5212 5512 *49
51
52
1814
1812
20 May 41 18 Jan
*1812
19
183
4
*1838
19
5,600 1 ,otany Cons Mills class A.50 18 May 4 2812 Jan 6
*1818
*1812 19
24
2,7001 tiggs Manufacturing_No par 2712June 30 36% Feb 23
28
28
2712 28
Oct 37% Jan
28
277 2778
2818 28
28
4,800 1 tooklyn Edison, In°
165 166
168 168
16612 168
164 188
100 14812 Feb 11 176 June 7 133 Mar 183 Sept
164 164
Union
Ohs
11434
Alyn
114
114
1,300
June
1
6
118
*114
No
68
Apr
4
par
11312 115
8938
Mar
115
3
4
1143
4
98 Dec
1143
8
11438
383* 3838 3914 16,500 1 town Shoe Inc
No par 3012 Feb 1 391 1July 8
2912 June 485* Jan
3418 3412
3434 3514 355* 3628 37
26
1,700 1 tunsw-Ilalke-Collan't.No par 20 July 8 38% Jan 10
245* Mar 3934 Sept
2734 2734
2712 2712 2612 2634 2618 2612 26
89
2,300 1 .urns Bros new clAcom No par 8512June 17 12534 Jan 20 121 Mar 144 July
8838 8828
90
8918 8914 8814 8834 88
88
1,300 New class B com__No par
1938 181z 19
1938 1938
2612 Nov 44 Feb
1614 Mar 18 3434 Jan 27
•1914 20
1938 1978 19
Preferred
9412
*9012
95
97 Mar 1031* June
*9012
9412
94
100 90 June 20 100 Jan 3
*90
*9012
*9018 9412
1 urroughs Add Maoh_No par x90 Mar 2 12834 Feb 28
9412
*93
771* Apr 124 Dee
9412 *9358 9412 *9312 9412
*93
95
*93
5814 5,000 I ush Terminal new___No par 2914 Jan 12 624June 28
1634 Mar 344 July
5812 5938 58
5912 6012
5812 59
5812 60
10134 10214
320 Debenture
86
10112 10214 102 10212 100 101
100 9114 Jan 5 104 May 31
Apr 93 Aug
10234 10234
40 1 ush Term Bidgs, pref
11112 11112 112 112
9912 Jan 104 Nov
11034 11112 *11012 11214
100 10338 Feb 14 115 Apr 11
11012 112
54May 2
4 Dec
414 412 2,100 1 utte Copper & Zinc
614 Feb
6
418 414
334 Mar 19
414 412
412 412
418 418
Co
utterick
800 I
1734 Mar 71 Sep
.100 5018June 28 614 Feb 15
5234 53
5112 52
51
*50% 5112.
5112 52
52
838 812 1,200 1 utte & Superior Mining__ 10
1614 Jan
718 May
812 812
*812 9
'
1812 878
74 Apr 4
812 858
1114 Jan 7
*7912 82
2.900 1 y-Products Coke__ __No par 66 Jan 29 0212June 2
8112 83
53 June 90 Sept
8012 81
82
80
*82
83
17,600 1 yers & Co (A M)_ _ _ No par
80
42 Jan 3 94 June 2
28 Mar 447a N..
82
7934 8138 7912 8338 8114 83
7814 7934
70 Jan 5
6212 6212 6312 6412 6312 6414 6218 6314 5,800( alifornia Packing_ _No par 6014 Apr I
*6134 6212
604 Oct 17911 Feb
2378 2378 4,300( alifornia Petroleum
23
24
2278 2278
23
2934 Oct 384 Feb
25 21 12 Apr 28 32% Jan 18
23
2314 23
238 Jan 17
158
138 158
158 *138
134
134
I%
134
24 Jan
400( allahan Zino-Lead
•158
112 Jan 3
112 Mar
10
*6212 64
*64
6512
700( aiumet Arbon& Mining
*6212 6312
5512 Mar 735 Aug
*6212 64
6334 64
10 6112June 27 70 Apr 21
17 Apr 20
1412 1412 *1412 1434
1812 Aug
1,700( alumet & Ueda
1338 Mar
1414 144 *1412 1434
25 1414July 7
1412 1412
4734 4814 4734 4814 4838 5038 4914 50
65,000( anada Dry Ginger Ale.No par 36 Jan 5 5038July 7
3212 Oct 49 Sept
4712 4778
1995. 2523,
222 225
225 22AI. 222 22612 224 225
2.100( ase Thresh Machine
100 132 Jan 27 23412May 21
6212 Jan 176 Aug
EalvIrleml
and
askedprices;
ex
Ex:dlyldelid,7a-E2
no-salesOn
rights. F
rights.
thle day. - x
•Bid and
New York Stock Record-continued- Page 3
223
For sales during the weak of stocks usually Inactive. see third page prec.
ItIGII AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
July 2.
Monday,
July 4.
Tuesday,
July 5.
$ per share $ per share
*114 115
2634 2734
*1378 1438
1312 1312
74
*72
74
*72
*1112 1214
*7514 79
5878 594
5134 5134
*10912 11114
7
714
1734 1818
*129 132
59
59
3314 3312
*2214 25
*5912 604
454 4734
*10912 110
*52
55
117 117
11434 11434
115 11638
90
9114
*7112 74
9212 9212
•10478 105
5218 5214
14
14
*20
2012
•20
21
*70
76
*4618 49
*90
*8634 -89 340 340
1814 184
6238 63
•,8
22
8218 8218
*101 10112
•1
118
10078 10114
9612 9658
6
614
4134 4238
512 558
85
85
6012 6912
*173 178
1034 11
5312 55
__
•13014-*79
801/
82
8214
•105 107
2518 2514
7
758
35
35
2218 2214
•10312 108
1312 1312
48
48
*111 114
*3514 36
*2912 3038
*144 147
3734 3734
123 124
1812 19
6914 7012
*718 714
78
78
11514 1151/
155 15634
2758 2818
*237 23712
*110 11112
•12
1214
83
8314
1578 1678
2114 2112
*112
•10238 103-14
18
18
*6534 66
*7
8
6878 69
*12018 122
26
26
10234 10234
3312
33
•105 108
*175 185
72
72
•1812 1912
3812
*38
*105 113
9338 95
•11614 118
4112 4112
597,
4 98
*110 145
93
*91
*21
2112
11512 11512
*99 101
2212
*22
154 1512
85
*84
*90
9412
5412 544
5858 5834
5318 5378
6734 6778
4538
45
*9
938
53
*52
*10938 11212
.7124 72
110 110
6412 6412
•120 122
*5714 5712
4812 4858
11114 1134
1114
11
4112
.40
*1064 108
*117 120
*102 105
19714 199
12334 12334
*Bid and
Wednesday, Thursday,
July 7.
July 6.
Friday,
July 8.
C.Aft 011 A I.a
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
$ per share $ per share $ Per share 3 per share Shares Indus. & Miscall.(Con.) Par
116 113
*114 115
115 115
119 120
700 Preferred
100
2712 2712 2712 2734 .2634 2734 27
27
1,400 Central Alloy Steel____No par
1418 1418 1338 1338 1334 1412 *14
1412
100
600 Central Leather
*1334 1414 *1338 1414 1334 1334 1334 1334 1,000
Certificates
100
*72
7212 7212 7212 *7214 74
*72
73
100 Preferred
100
7214 7238 7238 724 7234 7318 73
7318
1,500 Preferred certificates
100
1112 1112 *1134 12
12
12
*1112 12
300Century Ribbon Milia__No par
7712 7734 *7514 78
*7514 78
*7514 78
2001 Preferred
100
5812 5812 59
5918 5378 59
59
59
1,200 Cerro de Pasco Copper_No par
51
514 5034 5112 51
5138 504 51
3,700 Certain-Teed Products_No par
*10912 11338 •10912 11353 *10912 1134 •l0912 11338
1st preferred
100
7
714
7
714
7
7
64 7
3,600 Chandler Cleveland MotNo par
1814 18
18
1814 18
1814 1712 1812 4,700 Preferred
No par
13038 13112 13114 13114 13012 13214 131 132
3,500 Chicago Pneumatic Tool_ _100
'5812 584 5834 6018 *58
5934 *5812 60
1,200 Childs co
140 par
334 3314 334 3358 3338 3334 3314 3312 3,400 Chile Copper
25
*2214 25
*2214 25
*2214 25
*2214 25
Chino Copper
r
61
6378 6314 6378 6334 6412 6214 6412 9,900 Christie-Brown tern ctfs No par
4778 4878 4734 4838 4634 48
4614 4732 70,700 Chrysler Corp
No par
10978 10978 110 11018 11014 11058 III 11214 3,600 Preferred
No par
53
5512 53
*52
5312 5312
53
53
600 Cluett Peabody & Co No par
11714 11714 117 117
117 117
117 117
340 Preferred
100
114 11778 117 11758 1154 11738 115 11512 10,200 Coca Cola Co
' No par
115 11778 116 11733 11812 12278 118 12012 31,600 Collins & Alkman
No par
9034 9434 9314 954 9134 9418 9134 9378 143,900 Colorado Fuel & Iron
100
*7112 73
7212 7212 7312 72
*72
72
400 Columbian Carbon vie No par
9318 9438 9334 9412 9414 9478 9334 9412 7,100 Colum Gas & Elec new_No par
105 10514 105 10512 10512 10578 10578 10578 1,200 Preferred new
100
5212 5314 53
5338 5338 5414 5338 5412 19,900 Commonwealth Power_No par
*1418 1414 1418 1418 *1414 1412 1412 1412
900 Commercial Credit_ __No par
21
*20
20
*19
20
21
21
*19
100 Preferred
25
21
*20
*20
*20
21
21
21
*20
100 Preferred B
25
70
70
70
*69
70
70
69
70
130 1st preferred (64%)
100
*4618 49
*4638 49
47
47
*4618 49
100 Comm Invest Trust_ __No par
*95 105
*95
98
98
*95
*95
98
7% preferred
100
864 8638 *864 8934 *8634 8934 *87
8934
200 Preferred ((Ha)
100
*342 345
34934 356
35712 365
354 360
5,300 Commercial Solvent* B No par
1834 1834 184 1912 1878 1914
1814 1838 10,600 Congoleutn-Nairn 1n0_No par
6214 6314 6212 634 6214 6518 6214 6312 21,300 Congress Cigar
No par
*14
12
*14
12
*14
12
*14
12
Conley Tin Foil stpd___No par
8112 82
8112 8512 85
8634 8318 8412 30.400 Consolidated Clgar____No par
10112 10112 102 102 *101 10212 101 10112
400 Preferred
100
118
*1
1
1
118 *1
1
118
900 Consolidated Distrib're No par
10034 10234 10234 10414 10312 10438 103 10378 26,200 Consolidated Gas(NY) No par
9612 9634 9658 97
9678 97
9678 9678 6,200 Preferred
No par
614 612
618 638
638
6
534 6
6,500 Consolidated
_ _No par
4212 423, 4234 4434 4478 4614 4414 4518 32,800 Continental Baking
TextileclANo par
612 634
652 6
534 6
534 578 21,200 Class B_ .
No par
85
86
86
87
8712 8812 8714 8734 6,200 Preferred
100
6912 70
71
72
7114 7114 7012 7034 4,400 Continental Can, Inc_ _No vas
.173 175
175 17534 173 173 *172 175
700 Continental Insurance_ _ _ 25
104 11
1078 11
1078 11
1078 11
4,700 Continental Motors__ _No par
5312 5412 5358 5414 5314 5418 534 5378 23,800 Corn Products Refining___25
132 132 *13112 _ _ *13112 ___ 13112 13112
300 Preferred
100
Stock
8012 8012 8014 -81
80 -80
80
80
900 Coty, Inc
No par
8112 83
83
84
84
84
8312 8312 1,700 Crucible Steal of America..100
Exchange *106 109 *106 109 *106 109
105 105
100 Preferred
100
2512 26
2412 2512 25
2538 2512 2558 5,800 Cuba Co
No par
Closed718 714
734 778
8
812
812 812 3,000 Cuba Cane Sugar
NO par
3434 35
354 3512 3612 3838 3712 3838 3,700 Preferred
100
Indepen2134 2214 2134 2238 2238 2278 23
23
9,000 Cuban-American Sugar
10
*10312 108 *10312 108 *10312 108 *10312 108
Preferred
100
dance, Day *1312 1512 *1312 16
*1312 16
*1312 16
100 Cuban Dom'canSugnewNopar
24712 4712 4712 4834 *4712 4812 4814 4814
500 Cudahy Packing new
50
Holiday. *112 114 *111 114
114 116
115 116
600 Custiman'a Sons
NO par
354 354 *354 38
3514 3514 *3514 36
200 Cuyamel Frult
No par
3012 3012 3012 3012 3012 31
3012 3178 3,400 Davison Chemical v t c_No par
*145 147
145 14512 145 145
14434 145
600 Detroit Edison
100
39
40
8
397 4034 39
40
*38
40
3,900 Devoe & Raynolds A__No par
122 123
12012 12234 122 12412 12134 122
500 Diamond Match
100
1878 1912 1914 1912 1712 1914 1614 1734 58,400 Dodge Bros Class A___No par
7014 71
7014 7138 664 7078 6612 694 24,500 Preferred cert f
No par
718 74
718 714
74 778
'712 778 1,500 Dome Mines, Ltd
No par
79
80
7912 80
80
SO
*78
79
3,800 Douglas Pectin
No par
11512 11512 116 116
1154 11512 *11514 116
600 Duquesne Light let pref__-100
15634 160
16012 16312 160 16412 160 16212 6,900 Eastman Kodak Co
No par
2758 28
2738 2814 2718 2734 2712 2734 3,700 Eaton Axle & Spring
No par
24178 24234 240 24178 238 24012 9,100 El du Pont de Nem new_ No par
23712 242
11112 11112 *110 11112 11112 11112 *10512 11014
300 6% non-vot deb
100
1218 1218 1214 1214 .124 1212 1214 13'z 3,700 Eisenlohr & Bros
25
83
8314 8318 85
8514 8638 8458 85'2 15,200 Electric Autolite
No par
1678 1712 174 1758 1712 18
1638 1714 14,700 Electric Boat
No par
2114 2218 22
2338 22
2312 22
233 89,400 Electric Pow & Lt
No par
11212 11212 11212 11314 1134 11338 *11212
400 Allot ars for pref 40% pd._
10238 10238 103 103
10334 10334 10318 1033
-- 8
500 Preferred
No par
1758 1818 1712 18
1518 1712 1614 1712 28,400 Electric Refrigeration_No par
67
6718 6714 6778 67
67
6512 66
900 Elea Storage Battery_No par
.7
9
*7
84 *7
734 *7
74
Emerson-Brant ClassANopar
*6814 6878 684 6834 6878 7014 69
8934 4,600 Endicott-Johnson Corp___ 50
•1203
_ •12018
.•1204
_ 12018 1201
200 Preferred
100
26 8-26-12 2612 -2
.138 2612 /jag 264 27
5,100 Engineers Public Serv__No par
*10212 10314 *10212 10314 10314 10334 *10212 1033
400 Preferred
No par
3258 3338 3238 3318 324 3378 324 331 26,200 Erie Steam Shovel
5
•106 108
108 109
10918 10918 109 109
600 Preferred
100
•175 185 *177 185 *175 185 *175 185
Equitable Office Bldg pra_loo
7238 7318 724 73
73
7314 7234 731
3,700 Eureka Vacuum Clean_No par
19
19
*1812 1912 *1812 1912 *1812 1912
100 Exchange Buffet Corp_No par
38
3814 3858 *3834 3912 *3834 39'2
38
500 Fairbanks Morse
No par
*105 110
109 109 *106 110 *107 110
100 Preferred
100
9378 95
9434 98
9612 98
934 96'2 49,600 Famous Players-Lasky_No par
117 117 *117 11814 *117 118
117 117
200 Preferred (8%)
100
4112 4134 4158 42
4112 42
4114 4117 2,100 Federal Light & Tree
15
59814 99
9814 9814 9834 99
98
98
60 Preferred
No par
141 141 *130 140
*120 145
135 135
200 Federal Mining & Smalt4_100
9234 9312 9318 9318 94
93
*92
94
1,600 Preftrred
100
23
22
22
2112 214 22
*2118 22
1,100 Federal Motor Truck _ _No par
11714 11714 117 1174 *115 117 , •115 117
500 Fidel Phan Fire Ins of N Y_ 25
•99 101
*99 101
*99 101
*99 101
First Nat'l Plc, let pref_ _ _100
•22
2238 2238 22
23
2212 *22
2238
500 First Nat'l Stores
No par
1638 1612 1512 16
1614 164
1512 1614
10,500 Fisk Rubber
No par
86
86
86
86
8514 8553 *84
86
400 let preferred stamped__100
*92 100
9412 941 *97 1013
*92 100
100 1st preferred cony
5434 5553 5518 5538 5512 5733 574 5812 95,000 Fleischman Co new___No 100
par
5914 6112 5312 5914 12,400 Foundation Co
*6034 61
5934 62
No par
54
5512 574 56
56
5714 54
554 18,400 Fox Film Class A
Vo par
68
691
6814 701
6858 7014 68
6834 13,700 Freeport Texas
No par
4512 457
4534 4612 4534 4712 50,000 Gabriel SnubberCo_
4538 46
A
No par
84 83
9
84 83
914
838 84
600 Gardner Motor
No par
*5218 523
524 5234 52
5234 5112 5234
700 Gen Amer Tank Car _No par
*10938 1121 *10938 1121 *10912 11212 *10938 1121,
Preferred
100
7212 73's 7212 7353 7312 7434 7214 7314 8,500 General
Asphalt
100
*110 115 *112 120
114 11434 113 113
600 Preferred
100
054 6514 6634 6682 6612 6712 65
6614 7.700 General Cigar, Inc new_No par
•120 122 *120 122 *120 122 *120 122
Preferred (7)
100
574 571 *57
5712 5712 5738 5738
571
400 Gen Outdoor Adv A_ _ _No par
24812 4838 4812 483
4712 434 4738 514 8,700 Trust certificates____N
o par
11414 1173 11634 11814 11514 11714 11412 11714 80,200 General Electric
Now_No par
11
1118 ii
1118
11
11
11
11 18 6,000 General Electric speclal____10
*3912 40
3978 3978 40
40
.40
41
400 General Gas & Elea A__No par
•10718 108 •10718 108 *10718 108 *10718 108
Gen Gas d, Dec DI A (7)No par
•I17 120 *11712 120 .11712 120
119 119
100 Preferred A (8)
No par
*102 105 *102 105 *102 105
105 105
100 Preferred B (7)
No par
19838 20234 202 20358 20012 203
19838 202 328,500 General Motors Corp No par
2122 12212 12212 123
12234 123
123 123
1,700 7% preferred
100
asked prices. no Sales on this day, a Ex v and.
Ex-righta. I Ex-dividend 100% in stock.
Range Since Jan. 1 1927
On basis of 100-share lots
Lowest
Highest
3 per share 3 per share
111 Feb 28 12412May 21
24 Apr 1 31 Apr 14
838 Jan 3 1778May 25
714 Jan 3 1512May 26
54 Jan 14 7712June 1
54 Jan 3 75 June 231
1012 Jan 26 1612 Mar Ihi
70 Jan 24 83 Apr 22
58 June 27 6312 Feb 24
42 Jan 25 5534May 11
106 Feb 1 111 June 25
634Junc 27 14 Mar 22
13 June 27 2614May 6
12012 Jan 3 13714 Mar 2
4338 Mar 31 6234May 24
3318June 27 3914 Mar 21
2218 Jan 7 24 Apr 11
344 Jan 5 6578June 16
3818 Jan 28 5134June 8
10238 April 11214 July 8
51 Juno 17 6634 Jan 24
11114 Jan 6 120 May 4
c9617 Apr 27 19912 Apr 22
63 Jan 4 12278 July 7
4258 Jan 4 9514 July 6
6678 Jan 3 8512 Mar 18
824 Feb 11 9834May 27
994 Jan 24 10712May 16
4838May 25 5458June 18
14 June20 2033 Feb 21
17 June 10 23 Mar 10
1878June 15 23 Jan 7
69 July 8 8518 Jan 12
4118May 4 5634 Mar 14
95 Apr 21 9812 Jan 27
86381uly' 95 Mar 14
223 Jan 3 333 June 3
1714 Jan 26 2238May 4
47 Mar 11 6518July 7
14 Feb 1
58 Jan 5
7578 Apr 30 8634July 7
99 Mar 22 10212 Feb 2
1 June 10
212 Feb 4
94 Mar 9 10912 Jan 10
93 Mar 18 9734June 1
3,8 Mar 14
718June 18
3312 Apr 30 7478 Jan 6
4 May 19
1014 Jan 5
72 Apr 1
9714 Jae 13
5834 Apr 9 734 Jan 3
135 Jan 27 17534June 29
1014June 16
1334 Jan 6
4678 Jan 12 6318hlay 14
128 Jan 11 13214June 3
56 Jan 3 8378June 2
77 Jan 4 9634 Mar 4
103 Jan 18 11018May 31
2412July 6 3414 Jan 8
7 July 2 1034 Jan 5
3412June 28 5034 Jan 4
2134July 5 2812 Jan 3
102 Jan 31 106 June 2S
1312June 30 18 Jan 21
4312 Apr 8 5278 Feb 23
103 Apr 4 11812May 10
30 Apr 28 37 June 16
2614 Apr 28 3412May 24
1334 Jan 21 157 June 2
37 June 20 4238 Feb 2
115 Feb 28 133 May 12
1614 July 8 2712,Jan 5
6612July 8 85 Feb 14
7 June 30 1114 Jan 4
46 Jan 3 80 July 5
11414 Mar 2 11634June 1
12614 Jan28 167 June 24
2418 Mar 21 2934June 20
183 Jan 25 25378 Apr 22
10512 Feb 5 11218May 10
1178 Jan 3 161 2 Feb 15
6312 Jan 13 8658July 7
1312Mar 2 21 May 21
16`3 Jan 27 2334July 8
10378 Jan 28 115 May 21
96 Jan 14 10614June 10
1514July 17 3738 Jan 3
6314May 3 7912 Jan 6
74 Jan 4 13 Apr 14
8434 Jan 28 7238June 10
11638 Jan 5 12112 Mar 28
2134 Jan 11 2878Nfay 24
9334 Jan 8 10612June 2
2434 Jan 3 34 June 30
10112 Jan 6 10918Ju2y 7
1181/ Feb 5 178 June 28
6078 Jan 25 7434June 17
1518 Jan 25 1934May 21
3714May 2 4312May 11
10718 Feb 7 112 Mar 2
93 July 1 11434 Feb 24
116 Apr 25 12438 Jan 12
3712 Jan 17 47 May 3
9112 Feb 23 9912 Mar 31
60 Feb 9 187 June 16
7512 Jan 28 97 Mar 12
2034June '27 3078 Jan 10
9312 Feb 23 193 Jan 6
974 Jan 13 103 Mar 4
1914hiay 11 30 Feb 7
1478June 17 20 Apr 20
81 Jan 5 8938June 2
9412July r 101 Apr 21
4618 Feb 1
59 May 19
5518June 0 8838 Apr 1
50 June 28 7412 Jan 6
3414 Jan 4 7434 Apr 9
2918 Jan 3 4712July 8
64 Jan 27 1138 Apr 22
46 Jan 3 5514June 24
1064 hiar 1 11012June 8
6818June 27 9634 Mar 2
10812June 27 14478 Mar 2
52 Jan 28 894 Feb 24
118 Jan 5 134 Feb 24
5438 April 5812 Feb 9
37 Jan 18 55 May 31
81 Jan 27 11212 July I
11 June 21
1158 Jan 5
1 Feb 2
34 Apr 1
47.
100 Jan 3 10934June 9
11314 Mar 22 120 June 1
96 Jan 13 105 June 22
14512 Jan 25 20512June 17
11812hiar 9 12414June 1
1,11 A
0.1S214,11
Banos for Previous
Year 1926
Lowest
Hshug
$ per share $ per share
96
Jan 11812 Aug
2812 Oct 3314 Aug
7 Nov 2012 Jan
7 Dec
834 Nov
4314 Apr 6834 Jan
50 Nov 5412 Dec
1014 Oct 3278 Jan
7814 Dec 90
Jan
5712 Jan 7312 Aug
3618 May 4912 Jan
100 May 10614 Nor
812 Nov 26 Feb
2034 Dec 4514 Feb
9412 Apr 12814 Dee
4518 May 6638 Jan
30 Mar 3838 Jan
16 Mar 26 Nov
2912 Oct 6334 Jan
2812 Mar 544 Jan
93 Mar 108
Jan
60 Dec 6812 Jan
10314 Jan 116 Sept
128 Mar 17434 De/
34E4 May 6912 Dee
2738 Mar 4938 Oct
554 Jan 7034 Dec
8558 Nov 91 Dec
9878 Nov 10138 Nor
1-612 Nov
2114 Nov
20 Nov
8512 Dec
5412 Dec
97 June
89 May
11814 Jan
1212May
4012 May
38 Dec
4514 Apr
91 Mar
-4712 Jar
2614 Jan
2734 Jan
9912 Fet
72
Jag
104
Jar
100
Jar
237 Nov
2938 Sem
57 Dee
1 Mal
8714 Des
10732 Jul]
112 Aug
612 Jaz
87 Mar 11538 Am
1' May
-414 Not
5012 Oct9378 Aug
738 Oct154 Seto
87
Oct9612 Aug
70 Mar 9212 Ja!
122 Mar 14434 Jal
08 May1378 De,
3538 Mar 5138 De,
12212 Jan 13014 De
444 Mar 62 De,
64 Apr 8234 Da,
98 Mar 104 Do
2814 0 t 5332 Jun
84 May
1112 Ja,
3512Jun
5038 De
2014 Aug3038 Jul
9734 Jan 105 No,
1512 Sept2014 Jun
5118 Nov55 De
7712 Mar 108 De
32 Nov 51
Ja
2318 Oct 4634 Fe
12312 Mar 14112 De
31
Oct 10418 Fe
-21-14 May -4714 Ja
7912 May 90 Jul
8
Oct 20 Ms
19 Mar 48 No
11112 Mar 11634 Au
10653 Mar 13634 De
23 Oct 3234 Fe
15434 Nov 18112 De
10034 Apr 1104 De
1034 Oct2012 Fe
6134 Mar 82 Fe
4 Mar 16 De
1514 Oct3412 Fe
994 Ma 115 Fe
8912 Mar 9814 Set
3338 Dec 78'l Jut
7118 Mar 9418 At
614 Dec
814 De
6512 Mar 7238 Fe
114
Ja
120 Set
1914 Oct2412 Jul
924 Nov9612 At
2112 Oct254 Na
Oct102 Na
100
9978 June 13214 Jul
43 May 6838 Do
1434 July 17 A;
3758 DCC 5934 Fe
10612 Nov115 Fe
10318 Jan 12712 Jul
115 Mar 12412 Do
28 Mar 4712 DI
88 June 94 Do
41 May 11134 Js
Jo
61 Mar 105
23 Oct 3433 At
160 Apr 20014 Je
96 May 107 Fo
28 Nov 494 I',
144 May 2614 J2
7671 AP1' 8414 M
94 June 107 M
324 Mar 5612 Fo
734 Dec 17904 J,
5518 Mar 85
J,
1938 Jan 36 Di
2558 Nov 42 Fo
54 Nov
934 J,
39 Mar 5538 J,
9912June 109 Di
50 Mar 944 Al
9478 Mar 14018 Al
46 Mar 5912 Fo
109
Jan 118 D,
51 Mar 5638 Al
2638 Mar 3978 Di
79 June 9512 At
11
Jan
11.84 DI
34 Mar 59
Js
95 May 100 Do
10512 Apr 113 Sel
9214 Apr 96
Js
11314 Mar 22534 At
11312 Jan 1224 Do
New York Stock Record-Continued-Page 4
224
*os salsa during the week of •tocks usually inactive, see founli!page preceding
r65 all 41.46
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
July 2.
Monday,
July 4.
$ Per share $ Per share
*107_
122 1-2212
6818 6814
*4018 41
*10412 10612
1512 15/4
5714 5758
5414 5414
*99
9012
113 113
11018 11018
*6212 63
*62
63
1064 1074
•7/
1
4 8
351
/
4 351z
114 114
1194 11912
39/
1
4 4018
*854 878
4712 4712
*56
57
*2414 25
0254 2612
Tuesday,
July 5.
Wednesday, Thursday,
July 7.
July 6.
Friday,
July 8.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
5 per share 3 per share $ Per share $ per share
_
*105
*105
105
*_ *105
_
8 12058 122
--12258 1-2158 12134 1237- 8 121,8 12i77214 6834 7012
684 6912 6914 7213 69
42/
1
4 4334 *414 4212
41
41
4034 44
*104 10612 *106 10612 *10534 10612 *10534 10613
1
4 154 16
1534 15/
16
1612 154 16
/
4 5814 564 5714
5858 561
5738 5838 58
1
4 5334 5412
5434 551
/
4 5434 54/
5438 55
99
*96
994
994 99
*99
9912 *99
114 114
113 114
11258 113 *11212 113
/
4 11018 11014 109 10978
11018 11018 11018 1101
1
4 644
1
4 63/
6212 624 6314 6334 634 64/
6414
634 6438 *64
63
6214 6214 63
1
4 10734 *10634 1074 10658 10658
*10612 1074 *106/
*758 8
*758 8
*758 8
*758 8
1
4
1
4 3534 35/
1
4 36/
1
4 364 3634 35/
351z 36/
118 11834 118 11812
11414 1144 115 118
/
4 12012 1204 12014 12012
*120 12013 120 1201
43/
1
4
1
4 404 4334 43
40
4014 4014 40/
912
9/
1
4 914
1
4 *9
1
4
812 8/
81z 8/
.471z 48
4714 4714 .34712 48
*4712 48
*561
/
4 57
5614 57
561
/
4 57
57
57
*2412 2512
2414 244 *2412 25
*2412 25
2512 2518 2514 2434 2478
2512 2512 25
Shares Indus. & Miscall.(Con.) Par
__.__.General Motors Carp8% pf 100
21.400 Gen By Signal new _. No par
30,700 General Refractortes___No par
5,000 Gimbel Bros
No par
Preferred
100
7,900 Glidden Co
No par
15,000100Id Dust Corp v t o_No par
3,500 Goodrich Co (B F)
No par
100j Preferred
100
2,900 Goodyear T & Rub pf v t 0_100
1.100 Prior preferrea
100
2,400 Gotham Silk Hoetery__No par
1,500 New
No par
100
100 Preferred new
Gould Coupler A
No par
6,100 Granby Cons M Sm dc Pr-100
4,500 Great Western Sugar tom et125
100
160 Preferred
100
7.300 Greene Cananea Copper
1,100 Guantanamo Sugar--No par
100
200 Gulf States Steel
330,Hanna lot prof class A
100
200 Hartman Corp class A_No par
700 Class B
No par
___
Hayes Wheel
No par
25
iii5 Heim°(a ICI
iii iii2 ;Oa ii
;57
7 if
No par
5,600 Hoe(R) & Co
38
4178 38
3814 38
39
No par
3411 3558 9,100 Hollander &Son (A)
35/
1
4 3514 36
35
100
200 Homeotake Mining
61
*6012 6112
61
•6012 61
4,000 Haunch Prod,Ine.tem otiNopar
56
57
56
56
56
54
164/
1
4 16814 167 17338 143,100 Houston 011 of Tex tom etfo100
161 168
No par
700 Howe Sound
36
3534 3534 *35
36
35
No par
811
/
4 8234 79/
1
4 82's 8158 8314 129,200 Hudson Motor Car
1
4 1913 191
/
4 18,500 Hupp Motor Car Corp____10
1
4 19/
1914 2038 19/
1
4 4,200 Independent Oil& Gas_No par
1
4 19/
1
4 19/
1
4 1912 19/
18/
1
4 19/
2,600 Indian Motooycle
No par
24/
1
4 2312 24
24/
1
4 254 24
10
812 812
84 84 "814 812 1.100 Indian Refining
10
Certificates
700
8
*73
4
/
1
4
74
7
8
8
700 Ingersoll Rana now____No par
91
*8712 90
89/
1
4 904 91.
No Par
49
49
491
/
4 5,600 Inland Steel
50
49
50
100
100 Preferred
114 114 '110'4__. *113 118
20
1318 2,400 Inspiration Cone Copper
13
13/
1
4 134 14 13
;66" ii"
968 Vi
37
3818 414
38
1
4
3434 34/
1
4
34/
1
4 35/
61
61
*6012 61
5312 54
5318 5318
158 16114
155/4 157/
1
4
3512 3512
*35
36
814 8234
804 8138
191z 1934
1912 1912
1814 1814
184 1814
2514 2538
254 2512
84
*8
•11;
812
*712 8
*7/
1
4 8
90
90
8934 89/
1
4
49
5018
4814 50
*11014 114
*113 114
13
1318
*13
14
1
4 3,900 Intercont'l Rubber--_No par
12
1278 1234 13
1234 1314 1212 12/
1212
*12
No Sr
700 Internal Agrloul
84 9
814 812
954 954
•9/
1
4 1014
*9/
1
4 1014
100
1,100 Prior preferred
4514 *4012 43
4612 45
4584 44
45
45
45
Machinee_No
par
Business
2.100
844
84
/
1
4
843
4
823
4
84
lot
83
/
1
4
8212
83
/
1
4
82
82
6.500 International Cement-No par
57
5538 5634 56344 59
.55
1
4 56
554 5518 *55/
100
100 Preferred
109 109 *108 109
*10812 109 *10812 109
108 109
45,200 Inter Comb Eng Corp__No par
1
4 46
4558 4678
4614 4718 464 474 4512 4712 44/
11,700 International Harvester-100
184 18612 18212 18412 181 18234 180 182
182 185
100
130
1293
4
1293
4
300 Preferred
*129
13012
130
*129 136
12934 12934
*7
712
714 714 1,200 Int Mercantile Marine-100
713 713
712 712 *7)4 74
100
481
/
4 49/
1
4 4758 4834 4712 4812 4714 4818 15.800 Preferred
4712 4814
7114 7134 2,800 International Match pref_35
/
4 7178
72
72/
1
4 711
/
4 72/
1
4 7113 72
711
60/
1
4 6134 6112 6314 6112 6334 6118 6278 60,500 International Nickel (The)25
Stock
5918 61
27,200 International Paper-No par
455
8
47
455
8 47
46
/
1
4
4714
r 4534 46
4534 4714
100
9714 9712 Exchange
9714 9714 9738 9712 9738 974 9712 974 1,400 Preferred (7%)
International Shoe,,___No par
*185 18812 *185 18712 *185 18712 *185 1874
*18518 188
100
1
4 3,300 International Silver
165 165
1654 1674 16814 172/
*157 163
Closed16234 164
1
4 139/
1
4 17,100 Internal Taloa & Tel -100
13738 138
137/
1
4 13818 13738 13812 138/
135/
1
4 13734
No
par
3,400
Intertype
Corp
38
36
35
Indepen36
36
/
1
4
35
/
1
4
363
4
35
36/
1
4 36
I
300 Island Creek Coal
60
60
60
61
6012 6012 60
*59
*591
/
4 60/
1
4
No par
61
6178 621z 6112 6212 2.100 Jewel Tea. Inc
61
6114 61
6014 dance Day
60
100
Preferred
400
*11212
113
*11212
113
11314 11314 1131g 11318
*11314 115
140 Jones & Laugh Steel pref 100
1
4 1191z 120
Holiday. 11934 119/
1
4 11912 11912 *11912 119/
.11912 120
2,600 Jones Bros Tea, 1no, __No par
267g 2712 2554 27
27/
1
4 27/
1
4 2712 28
*27
2712
No par
Jordan Motor Car
184
24.300
8
16
1258
1434
12
/
1
4
165
/4
15
14
/
1
4
.14
Kan City P&L lit pi A-No par
*113/
1
4 114/8 *11334 11412 *11354 11412 *1135 11412
1
4
*11334 114/
554 5412 5538 8,000 Kayser (.1) Coy t o__- _No par
5618 55
5514 5614 55
54/
1
4 554
25
1
4 25/
1
4 2412 2558 2334 2518 85,500 Kelly-Springtteld Tire
2334 2434 24/
2312 24
100
71
1.100 8% preferred
7012 71
.68
69
70
6878 69
69
*66
100
69
1,000 6% preferred
71
69
68
68
69
*66 '68
*64
69
25
23/
1
4 2358 2312 2412 1,900 Kelsey Ha...es Wheel___No pas
2278 2312 .24
2212 2212
NO par
625g elk 621, 24,700 Kennecott Copper
6112 61/
1
4 617g 623* 62
81
6114
14
14
*14
38 4,100 Keystone Tire & Rubb_No par
38
14
14
14
14
14
No par
20
20
20
300 Kinney Co
•19
20
20
*19
20
19/
1
4 1978
100
480 Preferred
70
69
71
70
+7012 67
6634 70
6634
66
25
564 564 564 5514 5614 2,500 Kraft Cheese
5512 5634 *56
524 57
10
7,800 Kresge (11 5) Co new
5452 55
541
/
4 55
53/
1
4 54)5 5354 55
5334 5334
100
70
Preferred
11512
11512
115
*11614
114
11354 11378
500 Kresge Dept Eltored___No par
13
12 *11554--1318 1318 13
1334 12
•11
1334
*11
100
Preferred
*4712 544 *4712 5412
*45
57
*45
57
*45
57
900 Laclede Gas L (St Lonbi)-100
231 244 *240 244 *236 244
230 230
*225 240
15,200 Lago 011 & Transport_No par
29
2858 285* 2912 28
1
4 27
26/
1
4 26/
*261
/
4 27
No par
1
4 7714 8014 33,900 Lambert Co
1
4 7618 7634 7614 77/
7414 76/
7414 7414
No par
8
8
1,000 Lee Rubber 41s TIre
818 814
8
814 *84 814
8/
1
4 888
No par
Lehn
&
Fink
374
12,100
37
36
/
1
4
35
/
1
4
3514
36
35
3538
1
4
35/
1
4 35/
par
Life
Savers
No
22
500
2112
2112
22
22
2112
*2112 22
*2113 22
Tobacco__25
&
Myers
900
Liggett
116 117
11612 11612 117 117 *116 117
11212 11212
25
11612 11812 4.800 Series B
115 11578 11512 11712 11612 117
11234 114/
1
4
100
100 Preferred
12834 12834 *128 129
*126 129 *127 129
*126 129
No par
3,700 Lima Loo Wks
66
65/
1
4 664 66
6214 624 6238 65
6238 6238
2.200 Liquid Carbonic certlfs_No par1
5114 5114 *5114 62
51
51
52
51
51
51
No pars
525* 8,000 Lnatee Ineorporated
5134 5238 51
1
4 5114 52
5114 52/
NA 52
NO par1
1,700 Loft Incorporated
6/
1
4
64 614
61
/
4
64
612
6
,
2
63
2
614 612
900
par
34
*3412
36
Long
Bell
Lumber
A_.
_No
34
34
34
35
34
•3512 3712
/
4 434 4334 45/
1
4 57,900 Loose-Wiles Biscuit new ____25
1
4 4134 411
41/8 40/
40
35/
1
4 394
26
preferred
1001
-__ ___
25
3378 -3-78 348 -35-14 63:700 Lorillard
5i38 -324 iiii, -54
32/
1
4 321/4
200 Preferred
109 109 *107 109
1001
*109 10912 *107/8 109
*107 109
1112
1112
1,900
Louisrlana
011
temp
par
114
113
4
otfd-No
4
113
/
4
/
4 111
*1134 111
114 1134
91
10 Preferred
*90
*90/
1
4 91
1001
1
4 *9034 91
9034 90/
*9012 94
2618
2618 26
1,100 Louisville 0& El A____No °'l
26
26
1
4 26
25/
1
4 25/
•2534 26
No par
23
500 Ludlum Steel
23
2314 23k *2332 24
234 24
24
24
10 Mackay Companies
100
*110 11212 *110 115 *110 115 *110 115
11234 11234
Preferred
100
6812 7112 *6812 7113
*6812 713
*6812 71
*6812 71
NO par
9934 971a 9812 34,700 Mack Trucks, Inc
/
4 98
91154 98
971
/
4 9912 98 1001
1st
preferred
luuj
114
114
*111
*111
114
*110
*110 114
*110 114
20 preferred
lool
*105 108
*105 108 *105 108 *105 108 *105 108
500 Magma Copper
No par
33
*325* 3334
3234 3234 33
3238 3234
*3214 33
400 Malllnaon (H R)& Co_No pa
1
4
1512 1512 14/4 14/
15
*14/
1
4 16
*1434 154 15
22,100 Mash Elea Supply
No par
8614 90
8514 86
8112 8218
8212 8412 8312 86
25
/
4 3238 5,300 Manhattan Shirt
314 3138 3158 311
31
30/
1
4 3078
31
31
Maxilla
Electric
par
100
CorD__No
45
43
3
4
*427
8
4
435
4
1
4 433
*4278 4334
*42/
*4278 43
1312
100 Maracaibo 011Expl____No par
1312 *13
1312 *13
*1312 14
1312 1312 *13
1
4 24,100 Marland 011
No par
1
4 3212 334 3214 32/
324
1
4 33/
32
3218 3258 32/
No par
4512 447 45k 448 4514 4,000 Marlin-Rockwell
44
44
45
45k 45
200 Martin-Parry Corp____No par
18
18
*17
1634 1654 1712 1712 *17
*16/
1
4 19
1
4
104/8 104/
10438 10638 10534 10912 109 11058 10912 10978 10,300 Mathieson Alkali WorkoNo par
25
6954 6978 7,300 May Dept Stores new
6814 6958 6913 701
65
68
68
6814
4,500 Maytag Co
No par
3014 2912 30
30
2934 2934
30
30/
1
4 2934 30
200 McCrory Stored Class B No par
70
*65
70
*64
66
66
*6312 66
*63/
1
4 72
700 McIntyre Porcupine Minee_5
2612 *2512 26
*25
*2434 25
26
25
2558 26
100 Metro-Goldwyn Pictured pf_27
*2532 2558
*238 2558 *253* 25s 2512 2512 *2512 258
518 2,000 Mexican Seaboard OIL _No par
5
43* 5
5
5
5
5
478 5
5
300 Miami Copper
137g 138 *1334 14
14
14
•14
14/
1
4 *13/
1
4 14
4,300 Mid-Continent Petro_No par
1
4 2934 30
29/
1
4 30
30
3014 3014 3038 3014 30/
100
200 Mid-Coot Petrol prof
*100 102 *100 102
*100 102
101 101
101 101
13,500 Middle States Oil Corp---10
234 3
3
318
234 3
3
318
3
313
10
800 Certificates
218
*2
2
2
*2
218
2
2,8
218
*2
600 Midland Steel Prod pref-100
11134 111/4
111 112
10912 1095* 110 110
108 108
otfs____No
par
Rubber
Miller
6.800
3412
233
33
3518 35k 357g 3178 3512 33
•32
100
9934 3,000 Montana Power
9934 10012 9914 10018 9878 9914 99
*9834 994
6514 6614 853* 6658 6518 6534 65k 6638 9.500 Monte Ward & GO III corp_10
6512 6512
en
,
Ex-d1v
0
-r
s
'BId and asked prices; no sales on thla day.
Range Since Jan. 1 1927
On basis of 100-share lots
Lowest
$ per share
104 Mar 7
8218 Jan 14
38 Jan 14
3712 Mar 24
991
/
4 Mar 18
1412May 21
42 Mar 9
42/
1
4 Jan 3
95 Jan 3
98/
1
4 Jan 27
105 Jan 7
57/
1
4 Jan 12
58 Jan 12
104 Jar 28
712June 24
Ws Jan 27
109 Jan 26
11612 Feb 26
2914 Jan 27
8 Jan 25
46 June 30
56 Jan 31
2418June 15
234 Feb 0
1512 Feb 15
784 Jan 14
22 Jan 31
3114June 3
60 Jan 25
4314 Jan 3
/
4 Jan 11
601
35 July 1
4814 Jan 24
1838June 28
17 tMay 20
13 Mar 30
712May 12
714June 20
8814June 30
41 Feb 15
111 Jan 3
1212June 27
1138June 21
64 Apr 23
33 Mar 20
534 Jan 13
4514 Jan 21
1021
/
4 Jan 21
4318 Jan 28
135/
1
4 Jan 18
12634 Jan 12
1
4 Jan 4
6/
3718 Jan 6
62 Mar 2
3814 Jan 3
a391zMay 18
961s Jan 3
160 Jan 21
1354Mar 21
12214 Jan 25
Mt Jan 31
4811Mar 11
534 Jan 3
113 June 30
117 Feb 2
1052 Jan 3
12/8July 6
112 Feb10
69 Apr 29
94 Jan 27
as Feb 2
44 Jan 19
21 June 28
60 Feb 9
laune 30
1934June 28
56 June 29
49 June 16
45/
1
4 Jan 28
11018 Feb 9
10 June 28
48 June 28
1735 Jan 27
2012 Jan 13
66 Jan 28
7 Jan 4
32/
1
4 Apr 27
2114 Apr 18
*8712 Feb 10
/
4 Feb 10
0861
12438 Jan 27
62 Jan 6
481s Mar 15
/
4 Jan 4
461
6 Feb 23
324 Apr 26
23512July 1
157 Mar 1 I
2312May 2
107 June 27
1112June 4
90 Apr 6
23/
1
4 Jan 3
2134June 24
105 June 27
6814June 29
8814 Jan 24
109 Jan 25
102 Jan 18
2912 Feb 9
1112 Apr 7
5318 Jan 25
241
/
4 Jan 18
40 Jan 22
13 June 27
31 June 27
27 Jan 10
1658June 29
82 Jan 6
66/4June 28
235* Jan 15
5612 Mar 4
2412 Mar 14
2434 Jan 3
412Jul3 1
1318.1une 21
29 Apr 29
97 Apr 28
11
/
4 Jan 3
14 Jan 28
106 Apr 11
3158 Jan 25
/
4 Jan 28
811
6038 Pith 8
Highest
ran an 91M
Range for Prolong
Year 1926
Lowest
ROAM
$ per share $ per share $ per the,,
108 June 14
9814 Apr 105 June
126 June 28
6012 Mar 9378 Aug
36 May 49 Jan
75 June 1
411
/
4 Nov 781s Jan
491
/
4 Apr 11
10612June 23 100 Nov 11188 Jan
1538 June 25/
1
4 Jan
22 Mar 10
1
4 Feb
5938June 2
414 Mar 56/
3912 Nov 7034 Feb
5834 Mar 3
944 Dec 100 Feb
10312June 8
9612 Dec 10978 Aug
117)8May 16
112 June 6 10414 Dec 109 Sent
3314 Mar 6912 Nov
67/
1
4 Mar 25
474 July 68/
1
4 Nov
6738 Feb 24
110 May18-10 May 25
2 Oct .211-2 Jan
1618 Mar 3678 flee
45 May 26
12512May 25
89 Apr 11311 Del
122 June 3 10812 Mar 11814 July
48341May 21
9/
1
4 Apr 345k De
1114May 31
5/
1
4 Jan 107s Feb
64 Feb 28
511
/
4 Oct 9338 Jan
87 Jan 19
45 June 6013 Dee
2714 Mar 29
26
Oct 2812 Nov
291
/
4 Apr 18
24/
1
4 Dee 30 Sept
2812 Mar 31
171
/
4 Dec 46
Jan
1011
/
4 Mar 17
68 Mar 88 Dec
4178July 6
1712 May 3518 Aug
37 June 22
93/
1
4 Jai) 15 -4712 Jan -63
Oct
40 Mar 48/
57 July 7
1
4 Jan
17338July 8
5014 Mar 71
Jan
411
/
4 Apr 18
27
Jan 45 Sept
8878May 11
4034 Oct 12314 Jan
2358 Jan 10
17 Mar 2838 Jan
3254 Feb 1
1958 Mar 34
Jan
1411 Deo 24/
1
4 Feb
2712June 29
1118 Mar 14
7/
1
4 Oct 1314 Feb
712 Oct 1218 Feb
1012 Mar 14
8014 Mar 104 Jan
9612 Apr 2
3412 May 4334 Dee
5314June 6
117 June 8 10834 Mar 115 Feb
2034 Mar 28/8 Nov
2512 Jan 12
12 Dec 211
/
4 Feb
1534 Mar 12
1078 Feb 23
918 Dec 264 Jan
6612May 26
56/
1
4 Dec 95
Jan
8984MaY 10
381s Mar 56/
1
4 Dec
/
4 Jan
44/8 Oct 711
6538May 31
Jan
11014May 19 10178 Oct 106
3312 Mar 6412 Jan
64 Mar 1
188 May 23 11214 Mar 15818 Dec
133 May 18 118 Jan 129 Del
834May 27
6 Sept 1238 Feb
27 Mar 48/
1
4 Feb
5538May 31
7758June 7
5313 Mar 6838 Feb
3238 Mar 4614 Jan
76 May 31
441
/
4 Apr 6334 Aug
6078 Mar 7
89 May 100 Dee
10114May 24
185 June 3 135 May 175 Jan
175 May9-Jan
146 June 7 111 Mar fa.%
3912June 18
184 July 29 Jan
61 May 27
6612May 10 25 Jan -1141s Dec
1254 Mar 15 1154 Jan 1274 Nov
122/
1
4May 21 114 Jan 120 Aug
9 Dec 1912 Feb
3058June 27
2212 Jan 5
12 Nov 66 FA)
11518May 27 10714 Mar 115 Nov
3314 May 5134 Dec
5714 Jan 31
2858 Apr 21
9 Oct 2112 Feb
7538 Apr 21
4312 Oct 7434 Feb
76 A pr 21
45 Dec 7314 Feb
25 June 20
661
/
4 Apr 22 1934 Mar -64/
1
4 -Nov
12 may
I Mar 11
24 Jan
45 Jan 5
39 Nov 8218 Jan
8411 Apr 8
85 Sept 9914 Jan
56/
1
4 Dec 68 Nov
67/
1
4 Feb 25
4234 Mar 82 Jan
5538June 22
1
4 Feb
116 June 16 11211 Nov 114/
1518 Mar 33/
1
4 Jan
1712 Feb 8
7014 Mar 93/
1
4 Feb
80 Jan 4
26712June 2 146 Mar 196 a Dec
3212 Apr 9
194 May 2413June
/
4 July 8
3912 May 72 Nov
801
914 Dec 14
9/
1
4 Mar 14
Jan
38 May 27
30/
1
4 Mar 411
/
4 Jan
2478 Fob 17
171
/
4 May 25 Dec
123 May 24
7218 Mar 103 Dee
122/
1
4May 24
71 Mar 7234 Dec
131 June 3 11934 Jan 129/4 May
534 Mar 69/
1
4 Jan
7638 Apr 26
59/
1
4 Feb 14
4312 Oct 58/
1
4 Nov
344 Mar 48/
1
4 flee
63/
1
4 Mar 17
6 Oct 1114 Feb
7/
1
4 Jan 20
411
/
4 Dec 5012 Feb
43 Mar 7
481215lay 14
171 May 7 12014 Mar 175 Dec
2734 Oct 4214 Fell
36/
1
4 July 8
11812 Jan 13 11118 Apr 120 Aug
12 Mar 19/
1
4 Jane
184 Jan 5
93 Dec 98 Dee
97 Feb 5
2214 Mar 264 Feb
28 May 10
2258 Oct 584 Feb
3314 Mar 18
Oct 138 Feb
127/8 Feb 25 122
68 Mar 734 Feb
72 Jan 27
89/
1
4 Nov 159
11834May 23
Jan
112 June 28 10712 Nov 113 June
10712June 9 102 Oct toss. Sept
3778June 6
34 Apr 44/
1
4 Feb
12/
1
4 Nov 2818 Jan
18 May 2
90 July 1
44
Oct 87/
1
4 July
32/8July 8
211
/
4 Oct 32/
1
4 Jan
46 Mar 10
1
4 Sept
2712 Mar 45/
22/
1
4 Jan 18
1612 Oct 28 Feb
5812 Jan 17
494 Mar 63/
1
4 June
4812June 2
2412 Oct 33 Mar
2434 Feb 24
17 May 23 June
1101
/
4July 7
6212May 10618 Jan
73/
1
4May 23
8913 Dec 70 Dee
32/
1
4May 10
19 Mar 2412 Sept
754 Jan 3
Uri
72 Mar 121
274 Feb 28
2214 Oct 30 Feb
2614 Feb 21
2214 Jan 2512 Nov
914 Fob 16
1
4 July
6 Feb 13/
17/8 Oct
1612 Feb 28
11 Mar
Jan
3938 Jan 21
274 July 37
105 Feb 3
90 Mar 10414 Dec
2/
1
4 Jan
334June 23
/
1
4 Nov
/
1
4 Oct
11
/
4 Dec
234.1une 23
11911 Feb 17 107 Mar 13318 Feb
/
4 Feb
3634 Apr 12
30 May 4411
10414May 20
6938 Mar 864 Nov
Ign
Mt May 82
70 Aar 22
New York Stock Record-Continued-Page 5
225
Fru sales during is, week of stock. usually Inactive, see fifth page preceding
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
July 2.
Monday,
July 4.
Tuesday,
July 5,
Wednesday, Thursday,
July 7.
July 6.
Friday,
July 8.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
PER SHARE
Range Since Jan. 1 1927
On buts of 100-share lots
Lowest
Highest
$ Per share $ Per share $ Per share $ per share $ per share $ per share Shares Indus.& Sitwell.(Con.) Par $ per share $ per share
1
4
612 612
6 June 23 1212 Jan 5
634 634 *6
634 6/
612 634
634 1,1300 Moon Motors
No par
25
23
234 234
212May 13
2% 234
258 234
25
2/
1
4 2,700 Mother Lode Coalition_No par
43s Jan 3
.812 9
8
9
.858 85s *812 812
300 Motion Picture
8 July 8 1658 Mar 18
No par
*812 914
31
31
3053 3034 3013 3034 *303 31
*3034 32
700 Motor Meter A
1
4 Apr 18
No par 3014June 20 38/
*2378 2478
24
*24
243
243 2434 24
24
24
' 700 Motor Wheel
No par 2034 Jan 3 2778 Mar 29
3478 34% 35
3414 345
3514 3534 33
34
34% 5,100 Mullins Body Corp
10 Jan 5 3533 July 7
No par
.3653
397
3612
37
*3612 37
3612
*3614 37
100 Munsingwear Inc
*3612 37
Jan 11
No par 3534May 17
*26
2618 2613 2634 2734 2612 2658 26
27
2618 2,800 Murray Body new
No par 26 June 27 43 Feb 23
6413 65
6378 643
65
1
4 67
57,800 Nash Motors Co
6653 6518 6612 65/
No par 6014 Apr 25 7312 Jan 5
3613 534
*512 534 *513 553 .512 6
100 National Acme stamped___10
512 512
67sMay 18
5 Feb 15
.3612 37
1
4 3634 3634 3634 37
36% 368 36/
37
800 Nat Bellas Hess
No par 36 June 10 4414 Apr II
91
91
91
91
9018 91
907 9078 90
90
600
Preferred
100 8912June 30 97 Apr 19
130 13012
13012 13212 13214 13413 13214 13312 132 13312 10,600 National Biscuit
25 9434 Jan 27 138 May 9
*135 137
*136 137
136 136 *135 137
135 135
200
Preferred
100 130 Jan 10 138 June 8
4212 4212
4218 4212 4212 4278 4258 42% 4212 4234 3,600 Nat Cash Register A WINO par 397; Jan 3 457 Mar 21
6112 63
63
643
6312 64
6453 6312 6412 64
11,600 Nat Dairy Prod
No par 5914May 3 6412Ju1y 6
*2112 22
22
22
2114 2114 *2112 22
2112 2112
500 Nat Department stores No par 2014June 27 27% Mar 1
.90
9012
*90
9012 *90
9018 90
9018 *90
90
200
let preferred
100 90 Apr 18 9414 Jan 10
3814 39
3712 3918 3653 3814 3614 3738 3512 3614 7,300 Nat Distill Prod otfs___No par
17 Feb 8 5138June 6
*53
55
*53
5134 52
56
511
/
4 52
*53
55
600 Preferred temp ctf__No par 43 Mar 22 6934June 6
32
32
3212 3234 3214 3214 31
3138 1,800 Nat Enam dr Stamping
3113 31
100 1918 Apr 29 3:318June 6
9118 9118
9134 9178 9078 91
90
907
00
90
1,400 Preferred
100 6918 Apr 29 9178July 5
*9734 99
9753 97% 98 10014 9912 9912 9813 100
1,900 National Lead
100 595 Slay 31 20234May In
*132 13212
*132 13214 *132 13214 13214 13214 *132 13212
100 Preferred A
100 1131•June 2 13212June 6
21
2118
2078 2112 2112 2214 2112 2214 2112 2253 9.700 National Pr & Lt otts__No par 1914June 23 23% Mar 24
8234 8234
83
60 76 may ii 9534 Feb 18
8412 8412 847
8313 8438 83
8312 3,300 National Supply
*24112 243
240 243
24114 24234 241 243
241 243
550 National Surety
100 238 Feb 19 269 May 13
*13512 139
13834 13334 13834 138/
1
4 138 133 *135 134
300 NatAonal Tea Co
No par 108 Apr 18 13914June 17
13
13
13
13
13
1314 1318 1313 1314 131
6,000 Nevada Consol Copper_No par
1234June 29 15 Jan 3
4412 4412
4438 442
4512 46
245
45
4418 441
1,800 N Y Air Brake
No par 4038 Jan 8 50 June 9
----___N Y Canners
21% Jan 3
1318 Apr 21
No par
Preferred
No par 43 Mar 30 72 Jan 13
*5358 54
1234 E6 -if
bi -E6
-4,666 New York Dock
100 34 Jan 14 5424 July1
*82
85
878
83
*78
83
*78
80 .76
Preferred
SO
100 7218 Feb 9 8358June 16
*2812 29
2834 2834 2838 2853 2314 2814 2814 2314
2938May 2
900 Niagara Falls Power pf new_25 2734 Jan 31
4818 4814
48
4834 4814 43/
1
4 4818 4834 4818 4834 9,000 North American Co
10 4558 Jan 14 5212June 3
5112 5112
5218 5218 *5114 521
/
4 *5114 5214 5218 5218
700 Preferred
50 50 Jan 10 5214Slay 26
*10018 101 18
*10012 10134 101 101
101 101 *100 10112
300 No Amer Edison prof No par 9653 Jan 6 10158May 20
25
25
58 Feb 10
'234 3
3
3
*212 3
700 Norwalk Tire & Rubber_
*212 3
17gJune 16
10
10
1018
*10
11
*10
11
*1014 11
200 Nunnally Co (The)____No
*1014 11
13 Jan 19
10 May 21
- par
38
38
3812 4012 3812 3934 3312 3953 3312 3334 18,500 Oil Well Supply
/
4 Jan 28 4438June 3
25 311
*1418 1412
•13% 14
.1334 14
1334 13/
11 Mar 25 1710une 11
No par
1
4 1312 1334 1,300 Omnibus Corp
64
64
*63/
6512 *6314 65 .64
1
4 6512 *64
100 Oppenhelm Collins & CoNo par 5812 Feb 8 6778 Feb 28
6514
*2912 30
30
30
3012 3012 *2912 31
.30
3012 1,100 Orpheum Circuit. Inc
1 29 May 26 35 Apr 7
•10534
__
•10534_ 106 106
10534 10534 .10512 10612
Preferred
700
100 10312Nlar 23 10812June 2
*12212 1/512
12512 1-2-714 126 12738 127 127 *12512 12714 2.200 Otis Elevator
5() 2103 Feb 2 131 Jan 18
*115 11814
116 116 *11512 116 *11512 116 *11512 116
200
Preferred
100 108 Feb 16 11814 Mar 22
953 10
934 98
934 1038
934 10
912 953 5,200 Otis Steel
714 Feb 10 1212June 6
No par
*73
75
*73
7514 73
741
/
4 *7213 7312 7312 7334 1,800
Prior nref
100 6112 Feb 8 79 %June 9
76
76
7712 7712 *7612 77
*7612 761
300 Owens Bottle
/
4 *7634 77
25 751 Jan 18 8412 Mar 14
37
37
37
3678 3678 37
37
37
37% 1,600 Pacific Gas dr Elea new
37
25 31 Feb 18 3938June 1
•114
114
112
112
112 158
153
138
138 3.000 Pacific Oil
153
I% Jan 7
1 May 25
No par
3434 35
3434 3518 3434 3518 3158 3518 3453 3434 10.500 Packard Motor Car
10 3314 Apr 28 3712 Mar 14
12
1214
1218 1212 1212 121
/
4 1253 1258 1214 1212 12,700 Paige Det Motor Car__No par
778 Mar 22 1412May 4
7
5314 5312
Stock
53/
1
4 53
54
5414 54
1,800 Pan-Amer Petr & Trams
5434 5334 54
50 5314 July 2 65% Jan 19
5312 54
5334 547g 543 55/
1
4 5434 547
Class B
5334 541 18,500
50 5312Ju1y 1 668s Jan 20
Exchange
*2013 21
2012 2012 2053 2034 2018 2012 2014 2053 1.200 Pan-Am West Petrol B_No par
19 Mar 30 377g Jan 24
812
812 812
853
812 88
813 8%
8
8 Apr 29 187s Jan 17
812 3,300 Panhandle Prod & Ref_No par
*40
46
Closed- *40
60
*40
55
*44
55
*44
Preferred
60
100 63 Slay 9 8134 Jan 17
3734 3778
3714 377
3658 38
35
3678 355 3553 9,700 Park & Tliford tern Ctfl_No par 20 Jan 27 4218June 16
612 634 Indcpcn612 612 *612 834
800 Park Utah C M
612 612
8 Mar 4
613 612
6 Jan 3
1
383 3834
33
381
/
4 38
4014 3812 4012 3712 3914 11,400 Paths Exchange A new No par 3412June 28 4314June 17
22
2212 dence Day *2114 2212 2153 22
22
2212 *2134 2212
600 Patin° Mines & Enterpr pr_25 20 Mar 23 27% Feb 2
24
2512
2534 2612 2512 2618 2312 25
2418 2414 6,400 Peerless Motor Car
50 20 Apr 29 32 Jan 8
2453 2453 Holiday. *24/
1
4 2434 *2414 2434 2353 24% 2312 2414 2,700 Penick & Ford
No par 21 Jan 17 277sMay 9
*1412 16
1413 1412 *1438 1578 .14381 1514 *1453 1514
200 Penn Coal & Coke
/
4 Jan 19 2512May 27
50 101
2914 2912
28
30
2812 29
27
29
25
2653 14,300 Penn-Dixie Cement___No par 25 July 8 3953 Jan 13
96
96
*96
9714 *94
9718 *98
300
Preferred
97% 96
96
100 9512June 16 100 Slay 14
14
14
14
38
1
14
It
33
14
38 6,300 Penn-Seaboard St'l vto No par
118 Feb 14
14June 20
140 140
213812 13312 14012 14012 14018 14018 *13934 140's
500 People's 0 L & C (Chic)_100 126 Jan 14 14534May 20
*96 105
*96 105
.98 103
.96 103
100 Philadelphia Co (Pittsb)___50 8514 Jan 18 110 Mar 25
102 102
5178 5178 *5112 52
*5134 52
517 52
*5112 52
300
8% preferred
50 50 Jan 8 53 Feb 10
3812 3834
3858 3914 3858 3914 3812 39
3734 3812 11,400 Phil/4 .4 Read C & I___No par 3718June 30 4758 Mar 4
*38
39
*38
40
*38
40
*38
39
.38
39
Certificates of Int___No par 37'4June3O 47 Mar 4
28
*26
*26
28
*26
28
2712 30'2 2918 31's 9,000 Phillip Morris & Co, Ltd10 26 June 30 4118 Jan 10
3912 3978
3953 3978 3934 4014 3912 4014 38/
1
4 3934 50.000 Phillips Petroleum____No par 3814June 27 6014 Feb 16
*45
46
45
45
*45
4513 4512 4513 45
46s
200 Phoenix Hosiery
8 42 Jan 7 51 Mar 17
*107 10878
*107 10378 *107 10378 *10734 10378 .10734 l0Se
Preferred
100 103 Jan 5 107 June 30
•1453 15
1434 15
1412 15
1318 1413 1314 1334 12,000 Pierce-Arrow Slot Car No par
1278 Apr 27 2353 Mar 8
6012 6053
6014 61
60/
1
4 615
5614 60
5518 5753 8,200
Preferred
100 .5518July 8 10212 Jan 3
78 1
7
7
78
*34
78
78 2,100 Pierce Oil Corporation
78
7
118June 22
13 Mar 25
25
24
*21
*218 2278 217 22
*20
22
*20
23
200
Preferred
100 1312 Mar 24 24 June 21
412 47
48 4%
412 434
453 47
434 5
17,900 Pierce Petrol'm tern ctfallo par
20
512June
212
Mar
22
54
5512
55
5558 5412 5458 5214 54
551
/
4 54
3,500 Pittsburgh Coal of Pa
100 3234 Mar 22 7412June 7
.84
8634
.84
85
8478 8478 .84
85
84
84
600
Preferred
100 7038Mar 10 9312June 8
.97
9814
*97
9814 *97
9814 *97
9814 .97
9314
Pittsburgh Steel pref
100 9512 Apr 11 101 Jan 18
10334 1037
10378 10438 103/
1
4 10453 10318 10453 10218 10358 23,900 Postum Co, Inc
No par 92%Mar 16 10534June 21
*5714 60
*5712 60
58
59
59
6178 6034 611
/
4 5,700 Pressed Steel Car new
100 3612 Feb 5 70 Mar 28
*86
8812
*8712 89
8812 8812 8612 88
8712 8712 1,200
9212Slay 12
Preferred
100 7612 Feb
25
2512
2518 2553 2514 2612 2558 2612 2534 257
7,000 Producers & Refiners Corp_50 1634 Jan
3371Slay 16
11
42
*4112 42
.4158 43
*4158 4612 .4158 42
110
Preferred
50 Feb 9
50 3678 Jan
397 4038
4014 4012 4053 41 14 4012 4118 4012 411 17,700 PubServCorp of
1
4514June
NJ
new
Jan
32
No
par
*100 10012
*100 10012 *1001
/
4 10012 .100 1001 100% 10018
100
8% preferred
10114Slay 10
100 9812 Feb 1
•112 11212
11212 11212 11212 11212 11213 113 *11318 11334
500
7%
23
Mar
preferred
Jan
100
10812
11553
•130 131
•130 131 *130 130/
1
4 132 132 .13114 13212
100
8% preferred
100 125 Jan 1 132 June 20
10634 103
•10714 108
10714 10714 10653 10718 *10658 10678 1,300 Pub Seri, Elea &
10314May 20
Gal pfd_100 102 Jan
182 182
*181 183
18212 1847o 184 184 *183 184
1,300 Pullman Company
19512May 25
17214 Apr 1
100
.361
/
4 37
*3614 37
3612 3753 3714 38
38
3912 1,000 Punta Alegre Sugar
4678 Jan 3
50 3118 Mar 2
2578 26
26
26
26
2618 2618 2614 257 26
9,200 Pure 011 (The)
3312 Mar 4
25 2558June 2
•11214 11212 11253 11212 *111 113 *111 113
*11214 1121_
300
8%
preferred
Jan
11
100
114
Slay 25
5314 5314
55
5334 5334 55
5553 5578 *5514 5578 1.700 Purity Bakeries class A____25 1111;
58 May 3
4234 Mar 31
71
7114 711
73
/
4 72
71
73
7453 7312 7312 5,200
Class 13
7512Slay
Jan
No
19
3
par
4114
5358 55
5412 5512 54
5553 5312 5418 5212 5334 51,100 Radio Corp of Amer
No par 4113 Apr 13 5634 Mar 1
52
52
52
•517 52
5178 5178 52
*51 12 52
300
Preferred
Feb
28
3
53
49
May
50
4134 4134
417 4178 *4218 4612 *4218 4612 *4213 4612
70 Rand Mines, Ltd
No par 40 Jan 5 463 Apr 25
14
14
1413 1412 1413 1413 *1458 15
1414 1414
900 Ray Consolidated Copper--10 13's July 1
1512Mar 1
25
25
2512 2512 273,1 29
313 35
34
3512 25,900 Real Silk Hosiery
10 2358July 1 49 Apr 20
81
8518
84
*8312 84
84
87
87
8834 90
90
Preferred
100 SO June 1 99 Mar 2
51% 5278
55% 5278 537
/
4 .52
521
/
4 541
5218 5353 14.300 Reid Ice Cream
No par 3812 Jan 24 55%July 6
512 534
512 6
*534 13
*512 6
1,800 Reis (Robt) & Co
*514 6
No par
9 Jan 10
512July 2
43
4334
4334 4553 4514 4614 4414 4534 4414 4458 61,000 Remington-Rand
No par 373 Apr 14 4714June 9
9812
*98
*98
93
9813 98
*9314 9813 9814 OSly
600
First preferred
100 98 June 20 10212 Apr 25
•101 105
•101 105 *101 105 *101 104 *101 104
Second preferred
100 99 June 3 110 Apr 25
112 112
*112 11612 *111 11612 *III 11613 *111 11813
20 Rem'g'tn Type 7% 1st pf_100 110 Feb 18 11712 Feb 10
.113 114
.
1:3
ii.3 1_0
1:1; .31
.41
12
7t_ 1_6
%2_ 1.6
1_4
3_. 1_12
1_3
i_ *1_6
. 112
__ _20_ Ret%
log2id
e pirteLl
erred
100 111 Jan 6 128 Apr 25
_
1313 Jan 10
918 Apr 30
No par
;
.1 62. 3
-5-3-3-4 OO OOOO RepUbllo Iron & Steel
100 66% Jan 4 757k Mar 11
*10312 104
*10312 104
10313 10312 *10312 10412 *10312 194
100
Preferred
Jan
3
106
965
May 26
8
100
67
67
7
7
7
758
714 73
7
7
8,800 Reynolds Storing
8 June 10
4 Feb 21
No par
132 133
13314 13434 135 137
1373g 13778 136 13612 8,600 Reynolds (RI) Tob Clam B 25 9818 Feb 24 13978May 24
10(3 10653
10734 1037 10612 10878 106 1071
/
4 10218 10514 7,500 Roasts Insurance Co
25 74 Jan 13 10878 July 5
*4734 41314
4334 4834 487 4878 4833 4853 4858 4834
800 Royal Dutch Co(NY shares). 4734June 30 5412 Feb 9
377 371
3712 3719 371 3814 373 3833 *3712 38
1,100 Elt Joseph Lead
10 36 May 23 4374 Mar 4
71
70
7113 71
70
711
/
4 7012 7114 7012 7112 10.400 Safety Cable
No par 5214 Jan 3 7238Juiae 23
477 471
4758 4734 4858 5314 5213 5412 5234 5234 3,900 Savage
Arms Corpotation_100 4758June 24 7212 Mar 5
113
1
114
114
114
114
11
/
4
112
118
118 5,100 Seneca Copper
1 June 30
33.4 Jan 10
No par
*5638 53
53
58
58
5878 *5712 59
5612 57
1.300 Shubert Theatre Corp_No par 58 June 15 66 Mar 10
5212 5318
5234 5314 53% 54
5213 5378 5153 5318 13,300 Schulte Retell Stores
Jan
18
5512June
47
par
No
16
*119/
1
4 130
*11934 130 *120
.•121_ •12O12 130
Preferred
100 11614 Jan 22 120 May .5
11
11
'11
-1-112 91
1 112 '11 III, *11
500 Seagrave Corp
1.1 12
No Dar 1014June 30 1333 Jan 3
7g
57
7
5714
67
57
5778 5714 5758 8,600 Sears,Roebuck & Co newNopar 51 Jan 17 5912June 20
5738 57% 57
*72
7212
7112 72
72
7353 7034 7234 7034 7114 5,100 Shatuck (F 0)
5638 Jan 17 7578JUne 9
No par
4412 4412
*45
4618 4534 4534 314512 4612 *4613 4712
300 Shell Transport & Trading...0 43% Apr 28 4778 Fob 10
2638 2612
2612 26/
1
4 27
2711 2633 2713 27
271, 7.300.shell Union 011_ _ _
Vn nn• 2514 A nr 29 315. Fah 7
•BM and asked Dricee no WON On this day. s Er-dividend. a Ex-rights. s Ex-dividend one
snare of Standard 011 of California news
b DiatrIbuted one-half share common stock Lull one-h.df share pre:erred 13 stock.
53i.8 - 453 50i2
-6-ii.,
*a3
PER SHARE
Range for Precious
Year 1926
Lowest
Iliokail
$ per share $
934 Nov
4 Nov
1014 Dec
3334 May
1918 Nov
8 Nov
3434 Apr
-52
5
Mar
Nov
per skate
,eh
373'
712 Feb
2312 June
6338 Feb
3578 Feb
1934 Feb
3834 July
-7078 -Dee
1278 Jan
-74 Jan 1-02 -Dec
126
Jan 13112 Apr
3712 Oct 54
Jan
-24
Oct
89/
1
4 Oct
1212 May
3712
2118
76
138
Aug
July
July
Ain'
-4238
97
34
731
4012
8934
181
Jan
Jan
Jan
Jan
Jan
Jan
Dee
14 Mar
fs
5512 Jan
208 Mar
11612 Nov
11% June
3613 Jan
2018 Nov
7014 Dec
Oct
32
69 May
2758 Mar
42 Mar
Jan
49
9118 Mar
418 Oct
1234 Dec
30 July
12
Oct
Jan
47
1
4 Mar
27/
101
Jan
106 May
10234 Jan
8
Oct
63 Nov
5334 Mar
/138 Jan
88 Dee
237 Dec
238
Jan
1614 Nov
4612 Sept
8434 Jan
85 Apr
4578 Feb
77 Dec
2913 Dec
67
Jan
521
/
4 Aus
97 Dec
1518 Jar
1713 Jan
3653 Oct
22/
1
4 Feb
6358 Sept
331 Nos
105 Apt
136 Des
10912 Au;
1412 Jar
74 Sent
9034 De4
01 May
3134 Mar
9 Nov
5618 Mar
5678 Mar
30
Oct
412 Jan
51
Jan
1858 Oct
518 Sept
-1318 -Fet
4514 Jul)
2812 Jaz
'7613 Jar
7853 Jar
46
Jaz
32 Juni
9938Juni
2818 Jar
812 Feb
/338 Nov
16% Jan
7 Aug
38 Dec
99 Nov
% Oct
117
Jan
5918 Mar
45
Oct
3814 Apr
36/
1
4 June
Apr
16
40 Mar
31 Mar
94 Mar
19 May
7612 Apr
12 Oct
1118 Nov
214 Aug
29 June
70 June
94 Mar
7512 Mar
3418 Slay
77/
1
4 Dec
11 Mar
301
/
4 May
311
/
4 Oct
9612 Apr
10318 Jan
115 Mar
97
Jan
145/
1
4 Mar
33 Apr
2514 Oct
Apr
106
Oct
47
4113 Nov
32 Mar
445 Mar
1
4 Apr
32/
1012 Mar
3712 Nov
93/
1
4 Dec
3934 Dec
712 July
If% No
24 De.
19
Oct
41 DOI
10012 Not
214 Jot
131 De
91 De
511
/
4 Jul)
4834 Fel
4012 Jal
41
De,
5718 De
/
4 Not
461
103 Oc
4318 Jai
12714 Aui
153 Jai
2718 Jar
7
Jo;
4212 Jar
85
Jai
10018 De,
12471 Fel
44 Not
9534 Jai
2034 Oc
4114 Oc
333 Not
Oc
101
110 Not
12434 Not
10418 Bert
19913 Sep
4914 De
JAI
31
112/
1
4 Jun,
4918 Not
44 De
8138 Not
537 De
4134 On
1834 Not
5014 Oc
100 No,
Jai
56
18/
1
4 Fel
1-06 -Apr
105 Apr
8
Oct
44 May
911
/
4 Mar
414 Oct
90 Mar
7612 Dec
4753 Oct
3653 May
4218 Mar
6714 Nov
212 Dec
52 Mar
4212 Mar
11212 Jan
1212 Mar
4414 Mar
47 Mar
4012 July
24 Mar
ffi oe
11514 Au,
15% Jai
6353 Jai
99 Sep
1053 Jo!
1217/ Not
Jai
100
5713 Jet
1 Fel
48,
5512 7So,
10213 Fel
1014 Jet
7053 Jul3
13812 JAI
120 Sep,
1414 Mai
5833 Sew
6958 Jar
4853 Jaz
21 Tim
226
New York Stock Record-continued -Page 6
For sates during the week of stocks usually inactive, see sisal page preceding
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
July 2.
Monday,
July 4.
Tuesday,
July 5.
Wednesday, Thursday,
July 6.
July 7.
Friday,
July 8.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
$ Per share $ per share $ per share $ per Share $ per share $ per share Shares Indus. & Miscall.(Con.) Pa
*1558 16
1558 1558 1578 16
1578 1578 144 1534 10,700 Simms Petroleum
10
4912 5038
No par
5034 5138 5114 5178 5112 5238 5118 5218 44,300 Simmons Co
*110 11018
360 Preferred
110 110 *110 11014 110 11034 111 111
100
1614 1612
1638 1612 1614 1638 14,400 Sinclair Cons 011 Coro_No par
1614 1638 1638 17
*9712 98
*9712 98
*9712 98
*9712 98
*9712 98
Preferred
100
26
26
2558 26
2538 2614 2534 2578 5,000 Skelly Oil Co
26
27
25
*116 125
200 Sloss-Sheffield Steel & Iron 100
11712 118
*116
___ *11618 128 *117 127
13
13
1212 1212
1,000 Snider Packing
1278 1278
1218 1214 *1214 13
No par
142 14212
140 14214 14014 146
2,200 South Porto Rico Sugar__100
15112 15212 15018 153
30 Preferred
*129 130
130 130 *12934 13112 *12934 13112 130 130
100
35
3514 35
8,300 Southern Calif Edison
*3414 3433
3414 3438 3412 3514 35
25
1912 1,200 Southern Dairies cl A_No par
19
1912 1912 *19
1918 1918 1912 21
1914
700 Class B
812 812
8
834 *812 85s
8
8
*778 8
No par
14
*124 14
10 Spear & Co
*1112 1378 1112 1112 *1112 1378 *12
No par
*74
77
*74
77
77
*74
*74
77
*74
Preferred
77
100
2612 25
2538 3,900 Spicer Mfg Co
2414 2414 2434 2614 26
*2412 2414
No par
Preferred
*10812 10934 *10812 10934 *10812 10934 *108 10818
*108 10912
100
60
6014 6014 6034 6014 6034 5918 6014 10,400 Standard Gas & El Co_No par
5918 60
730 Preferred
6134 6214
62
6112 6012 6012 *61
*61
50
6134 6134
84
8412 1,900 Standard Milling
8412 85
84
83
100
*82
83
85
*81
300 Preferred
9638
9612 9512 9612 *96
100
96
96
96
9612 97
53
5338 9,100 Standard 011 01 Cal new.No par
5358 54
5278 5314 5318 54
5278 53
3638 3634 3638 3634 3612 3634 3612 3634 13,100 Standard Oil of New Jersey_25
3638 3634
3012 19,400 Standard ()Hof New York--25
30
3014 304 3012 3014 3012 30
30
3018
v312 334
*312 334 *312 334
200 Stand Plate Glass Co__No par
312 312 *313 334
11014 11034 5,700 Sterling Products
110 111
No par
10512 112
105 105
10412 10412
6,100 Stewart-Warn Sp Corp_No par
6134 6038 6138 604 61
6014 6134 61
6012 6138
324 3212 3212
300 Stromberg Carburetor_No par
*32
*32
33
3134 32
*3112 32
4938 5014 4912 5018 4934 5014 494 4978 16,500 Studeb'rCorp(The) new No par
4938 50
*118 123 *118 123 *118 123 *118 123
Preferred
100
*118 1204
614 638 10,200 Submarine Boat
No par
614 612
614 612
614 64
6
612
33
*32
*3218 33
200 Sun 011
*32
33
*32
33
No par
32
32
413 412
414 438 5,300 Superior Oil
412 412
414 438
*414 438
No par
*23
24
*23
25
25
600 Superior Steel
25
2518 24
100
25
25
400 Sweets Co of America
*834 10
*9
10
918 10
50
*834 10
*834 10
*312 4
*312 412 *314 4
'
1312 4
Symington temp otfs_No par
*34 4
*1014 1012 1014 1014 1014 1038 *1014 1112
600 Class A temp otfs__No par
*10
1012
500 Telautograpb Corp_-__No par
*1234 1314 1234 1234 1234 1234 1234 1314
*1234 13
812 812 2,200 Tenn Copp & C
834 812
No par
838 812
*814 8'2
814 814
4738 4714 4738 10,300 Texas Corporation
4714 47
464 4718 47
25
4634 47
64
6478 6418 6614 6412 6578 6334 6478 132,200 Texas Gulf Sulphur new No pa,
6412 6478
1518 1434 1512 1434 1518 15,000 Texas Pacific Coal & 011___ _10
1478 1512 15
15
1514
3138 3238 3012 3138 294 3112 2914 3118 51,500 Texas Pao Land Trust new__1
31
3178
e3112 32
3214
*3112 3134 3112 3112 3134 3134 32
No par
700 The Fair
a5311 54
28
600 Thompson (J R) Co
54
5312 5312 54
*5312 54
54
54
1618 1612 1618 164 1618 1638 1618 1618 2,200 Tidewater Assoc Oil...No par
1612 1634
88
88
88
88
88
100
500 Preferred
88
8814 88
88
88
2212 2212 *2214 2234 22
100
1,300 Tide Water 011
22
22
22
2212 2212
100
*8612 87
8712 *8612 87
*86
8712 *86
88
200 Preferred
*87
10134 10434 54,700 Timken Roller Bearing_No par
10214 104
10038 10112 102 104
100 10014
100
9918 10012 10012 10138 10012 10138 10012 10038 5,500 Tobacco Products Corp
*9934 100
100
11212 11212 11212 11212 11238 11238 11212 11212
800 Class A
1112 113
858 878 77,200 Transo't'l Oil tematf newNopar
878 9
858 94
878 914
878 94
*15
*15
17
*15
17
*15
17
17
*15
17
Transue & Williams St'l No par
Stock
554
54
5412 5412 54
5478 5478 5434 55
55
1.600 Underwood Typewriter __IS
5214 54
53
5438 5212 54
50
5214 10,600 Union Bag & Paper Corp 100
5012 5334
12278 12412 Exchange 12412 12738 126 12838 12512 12658 12512 12738 77,100 Union Carblde & Carb_No par
4118 4112 3,900 Union Oil Califonila
415s 4214 4158 4218 4112 42
25
4134 42
100 Union Tank Car new
11314 11314 11314 115
113 114
100
1113 11478 Closed- *113 115
90
9012 90
25
8.600 United Cigar Stores
9018 9114 90
90
90
90
904
10512 10718 7,400 Preferred
109__ 109 109
100
Indepen- 109 109
109 109
100
16478 12-578 169 16912 16814 16914 2,300 United Drug
16412 165
.16312 16412
50
700 1st Preferred
5934 5934 *5912 5934 5934 5934 5978 5978
5912 5934 dance Day
No par
133 13612 7,900 United Fruit
13012 13178 131 135
129 131
.128 129
170 Universal Pictures let pfd_100
9812 100 *100 101 *100 101
Hollday. 100 100
.100 102
3078 32
3038 32
2934 2918 31
923g
8912 9312 *85
89
89
89
236 23614
23978 234 23778 234 239
11712 *115 11712 *11512 118 *11534 11612
_
.. _
_
Wi Ii78
- 8ii4 18-38 ii 18- •-iiii3 -Ei
8114 794 8112 7918 80
7834 7938 79
11234 11234 113 113 *11214 11418 *113 11472
6234 6058 6178
6238 62
5914 6134 61
4358 4514 4434 4618 4518 4618 4134 454
9658 9712 9212 9634
95
9678 9612 97
*3518 3534 *3513 3534 3414 3414 3438 3412
4918 4918 4914
4914 4914 z4858 4858 49
PER SHARE
Range Since Jan. 1 1927
On basis of 100-sharelots
Lowest
13,800 Universal Pipe & Bad No Par 2714June 27
100 8184 Jan 27
1,000 Preferred
11,300 US Cast Iron Pipe & Fdy_100 202 Jan 25
100 112 Mar 14
Preferred
___ __ _ 17 S Distrib Corp tem MIN° par 5114 Feb 14
s5614 5712
900 U S Hoff Mach Corp vtoNo par 5138 Feb 1
100 69 Mar 30
12,700 U S Industrial Alcohol
7734 7814
211234 11478
100 10714 Apr 4
300 Preferred
15,300 US Realty & Impt new.No par 54 Apr 6
5912 5938
100 3714June 16
58,600 United States Rubber
4478
43
100 8534June 16
14,800 lot Preferred
9334 9412
300 U S Smelting, Ref & Mln___50 333s Jan 13
3534
*35
600 Preferred
50 4538 Jan 18
*4914 4912
United States Steel Corp-100 15312 Jan 28
12614 11618 12658 12214 12034 12218 12034 12158 108,700 New w 1
11138 Jan 28
126"
133 133 *13212 133
Preferred
100 129 Jan 28
132 13212 13214 133
131 13212
81
81
81
No par 67 Jan 4
500 U S Tobaceo
81
82
83
83
*82
83
*81
Preferred
100 123 Jan 14
*124 12634 *12414 12634 *12414 12634 *12412 12634
12314 12634
Utah Copper
10 111 Feb 11
*115 120 *115 116 *1
@FedFRASER