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tolltintra31
Volume 136
financial
•
1
iirtintde
New York, Saturday, March 11 1933.
Number 3533
7he Financial Situation
ANbeEXTRAORDINARY situation obviously
calls for extraordinary remedies, and that
must
considered descriptive of the happenings of
the present week. It has been a period of epochmaking events. These have followed one another in
quick succession, and yet while the President has
been resolute in grappling with one of the greatest
crises in modern times, and has been tireless and
unremitting in his efforts to provide measures of
relief, the end of the week still finds great confusion
prevailing. And a definite clearing up of the trouble
is still a matter of the future, though perhaps a matter of the immediate future, since the way is being
carefully paved for constructive movements of an allembracing character.
With all the banks in the country in the embrace
of moratoria, and operations restricted in one way
or another, the task of a return to the normal is
such as has never before confronted mortal man.
And if progress is slow, it is a condition inherent
in the problem. To deal effectively with this superhuman task the President felt himself obliged on
Sunday night last to declare a four-day bank holiday, covering Monday, Tuesday, Wednesday and
Thursday of the present week; to put an embargo
on gold emports and gold withdrawals, and to call
Congress in extra session for. Thursday. This he
did under an Act put on the statute book during
the war with Germany,which,fortunately, had never
been repealed, and, therefore, remained available
for the purpose. This forgotten statute was Section 5(b) of the Act of Oct.6 1917, as amended, providing "that the President may investigate, regulate
or prohibit, under such rules and regulations as he
may prescribe, by means of licenses or otherwise,
any transactions in foreign exchange and the export,
hoarding, melting or earmarking of gold or silver
coin or bullion or currency."
Accordingly, under the authority which the President feels is thus vested in him under the Act
referred to, "and in order to prevent the export,
hoarding or earmarking of gold or silver coin or
bullion or currency" he proclaimed the four-day
holiday referred to and ordered that it "shall
be maintained and observed by all banking institutions and all branches thereof located in the
United States of America, including the territories
and insular possessions, and that during said period
all banking transactions shall be suspended."
However, the proclamation provided for important exceptions and modifications. During the
holiday period the Secretary of the Treasury was
authorized (a) to permit any or all of the banks to
perform their usual banking function; (b) to permit
the issuance of Clearing House certificates "or other
evidences of claims against assets," and (c) to
authorize the creation in the banks "of special
trust accounts for the receipt of new deposits which
shall be subject to withdrawal on demand without
any restriction or limitation and shall be kept separately in cash or on deposit in Federal Reserve banks
or invested in obligations of the United States."
The Secretary of the Treasury, William H.
Woodin, gave formal effect to these qualifying provisos, but they have not been availed of to any great
extent, and it was hoped the bank holidays would
definitely terminate on Thursday night, with the
assembling of Congress and the passage of laws such
as demanded by Mr.Roosevelt, conferring extraordinary powers upon him and making him virtual dictator for the period of the emergency over the entire
body of banks and the banking situation. Congress
was quick to grant the dictatorial powers referred
to, but the President nevertheless found it incumbent to extend the holiday period or moratorium,
and this time to extend it indefinitely.
This is as the situation now stands. The further
delay very naturally has caused disappointment, but
the President has during his brief period as Chief
Executive shown that he acts with great promptitude, and unquestionably he will now proceed to
avail of the unusual powers conferred upon him and
quickly devise means for a sure, even if gradual,
return to the normal.
The President now has the powers asked by him,
and it simply remains for him to exercise them.
Indeed, the powers conferred upon him are of such
extraordinary character that they would furnish
occasion for the deepest solicitude, except that the
country has unbounded confidence in the President
and feels that he will make a wise use of them;
moreover, that he will not be in the least dilatory in
his efforts to bring about a restoration of normal
conditions. One stands aghast as he contemplates
these extraordinary powers, and there would be, it
is proper to say, no warrant or justification for
them if it were not felt that such a concentration
of power and authority is absolutely essential in
dealing with an emergency which is itself of unparelleled nature and extent. As evidence of their
character, it may be noted here that in the course
of a debate on the measure, which makes the President in effect the sole banking authority, Carter
Glass was prompted to say, while giving unqualified
approval to the proposition: "It broadens, in a
degree that is almost shocking to me, the currency
1602
Financial Chronicle
and credit facilities of the Federal Reserve System."
It is proper to note also that there was not the
least hesitation on the part of Congress in conferring
these wide powers upon the President, Republicans
and Democrats alike feeling that the crisis is of
such a nature that there is really no alternative but
to give the President every vestige of the authority
sought by him, since he and he alone is qualified
under'present circumstances to deal with the situation. This confidence in the President, which is a
redeeming feature, was shown in the speed with
which Congress acted in putting the new banking
measure on the statute book. The Washington
bureau of the "Herald Tribune," in commenting on
this, said that the House of Representatives debated
only 35 minutes and passed the bill, "not a copy of
which was in the hands of a single member," and
that the measure was considered by a unanimous
consent agreement and approved by acclamation.
The Washington correspondent of the "Herald Tribune" also took note of the quick response of Congress to the President's wishes, his comment being
to the following effect: "A night and a day of unprecedented drama culminated to-night in his signing, at 8:37 o'clock, an emergency banking bill which
had been swept through House and Senate 71 2 hours
/
after Congress convened in extraordinary session
to act in the banking crisis." The same correspondent also noted that at 10:15 o'clock, following
the enactment of the banking measure, the President
issued a proclamation extending indefinitely the
general four-day holiday which was to expire at midnight. "The national emergency still exists," Mr.
Roosevelt said, "and it is necessary to take further
measures extending beyond March 9 in order to accomplish such purposes intended by the original
proclamation of Sunday." The reason for the extension, it was understood, is to give time for the necessary classifications of sound banks by the Treasury.
The President's message, read as Congress convened,
averred that "Our first task is to reopen all sound
banks," and he indicated that when this had been
done subsequent legislation should be directed
against speculation in the future with other people's
money by those in positions of trust.
• One important provision of the new Act is that
during the emergency "any notes, drafts, bills of
exchange, or bankers'acceptances" may be deposited
by the Federal Reserve banks with the Secretary of
the Treasury and Reserve bank notes issued therefor
to 90% "of the estimated value of the proffered
security." These circulating notes, the bill provides,
shall be redeemable "in lawful money of the United
States." Against direct Government obligations
presented at the Treasury by the Federal Reserve
banks the new circulating notes may be issued dollar
for dollar on the face value of the Government securities. And this provision is very broad. Under
it the Federal Reserve banks apparently could take
over any issue of United States obligations and pay
for the same in the new Federal Reserve bank note
issues.
Another important provision is that any National
bank, as well as any State bank or trust company
"in need of funds for capital purposes, either in connection with the organization or reorganization"
of such institutions may request the Reconstruction
Finance Corporation to subscribe to preferred
stock. The Reconstruction Finance Corporation, in
turn, is authorized to comply with such requests.
March 11 1933
Not only that, but the Act permits the Reconstruction Finance Corporation, with the approval of the
Secretary of the Treasury, to sell such preferred
stock of banks, after it has acquired the same, in
the open market. It is also provided that "the
amount of notes, bonds, debentures and other such
obligations which the Reconstruction Finance Corporation is authorized and empowered to issue and
to have outstanding at any one time under existing
law" is hereby increased by an amount sufficient
to carry out the provisions of this section. Apparently there is no limit to the increase.
Most liberal provision is made for member banks
"in exceptional and e2rigent circumstances." It is
provided that a Federal Reserve bank, under rules
of the Federal Reserve Board,"may make advances
to such member bank on its time or demand notes
secured to the satisfaction of such Federal Reserve
bank." This would appear to give the Reserve banks
the widest discretion as to the kind of collateral
that the member banks may put up. Again,"subject
to such limitations, restrictions and regulations as
the Federal Reserve Board may prescribe, any Federal Reserve bank may make advances to any individual, partnership or corporation on the promissory notes of such individual, partnership or corporation secured by direct obligations of the United
States."
The Comptroller of the Currency, whenever he
shall deem it necessary, in order to conserve for the
benefit of depositors the assets of any bank, may appoint a conservator for such bank. The conservator
would take charge and enjoy all the powers now conferred upon receivers, and the bank could resume
business only when the Comptroller became satisfied that it might safely do so, and there are numerous other provisions concentrating unusual powers
in the Secretary of the Treasury and the Comptroller
of the Currency.
In a general way it may be said that the new
banking powers look to considerable inflation and
remove many of the safeguards and restrictions
against the extension of undue credit by the Reserve
banks and undue note issues, as well as undue borrowing by the member banks, all of which finds
warrant only, because of the unparalleled crisis in
the banking world under which the country is laboring. It is significant that this is occurring at a
time when enormous expansion both in the extension of Reserve credit and Reserve note issues is '
already a most conspicuous feature. The Federal
Reserve returns this week will prove an eye-opener
in that respect to many, even in the banking and
financial world. They also serve to show how serious the situation was last week, when even New York
State found itself obliged to follow in the footsteps
of other States in declaring a suspension of the
ordinary banking functions.
This week's return (for the week ending Wednesday night) shows an increase in money in circulation in the huge sum of $818,000,000, and this follows $732,000,000 increase last week and $134,000,000 increase the week before, making an addition for the three weeks in amount of $1,684,000,000. Of this increase the present week, $635,484,000 is accounted for by an increase in the volume
of Federal Reserve notes in circulation, which, in
turn, followed $579,274,000 increase in Reserve
notes issued last week and $109,103,000 the week
before. In the three weeks the volume of Reserve
Volume 136
Financial Chronicle
notes outstanding has risen from $2,891,145,000 to
$4,215,006,000.
In the same three weeks the volume of Reserve
credit outstanding, as measured by the bill and
security holdings, has run up from $2,131,262,000 to
$3,717,850,000, making an addition for the three
weeks in the enormous sum of $1,586,588,000.
Surely that ought to have been sufficient, and
surely it cannot be said that the Reserve banks have
ceased to function. The drain on the New York
Reserve Bank has been especially severe, and in this
three-week period the Federal Reserve note issues
of the New York Reserve institution have been
increased from $592,985,000 to $969,626,000, and its
bill, and security, holdings from $790,318,000 to
$1,162,912,000. And this, too, after the New York
Reserve Bank rediscounted $210,000,000 of its bills
with other Reserve institutions. In the same three
weeks discounting by the 12 Reserve institutions increased from $286,373,000 on Feb. 15 to $1,413,936,000 on March 8. The holdings of acceptances
of the 12 Reserve banks increased from $30,784,000
to $417,289,000. On the two items combined the
increase during the three weeks has been from $317,157,000 Feb.15 to $1,831,215,000 March 8.
In face of this huge expansion the new banking
and currency bill, passed by Congress on Thursday,
makes provision for expansion in huge additional
amounts, and one is inclined to wonder how much
further the policy of expansion must be carried before there shall be a complete restoration of confidence. One might even be justified in some scepticism as to whether confidence can be restored at all
by such means and measures.
1603
prehensive. Anything accordingly that Mr. Aldrich
has to say on investment affiliates is entitled to
careful consideration. Mr. Aldrich, after expressing himself entirely in sympathy with the divorcing by law of security affiliates for commercial
banks, goes on to say that he does not think that
the Carter Glass bill goes sufficiently far in separating the business of commercial banking from that
of dealing in securities. To separate commercial
banks from their security affiliates, he feels, is
only half the problem. By this he means that there
should be a similar severance of relations between
private partnerships and the banks. His view is
that:
"(1) No corporation or partnership should be
permitted to take deposits unless such corporation
or partnership is subjdeted to the same regulations and required to publish the same statements
as are commercial banks.
"(2) No corporation or partnership dealing in
securities should be permitted to take deposits
even under regulation.
"(3) No officer or director, nor any member of
any partnership dealing in securities, should be
permitted to be an officer or director of any commercial bank or bank taking deposits, and no
officer or director of any commercial bank or banks
thking deposits should be permitted to be an officer
or director of any corporation, or a partner in any
partnership, engaged in the business of dealing in
securities.
"(4) The Boards of Directors of commercial
banks should be limited in number by statute so as
to be sufficiently small to enable the members to be
actually cognizant of the affairs of their banks and
in a position really to discharge their responsibility
to stockholders, depositors and the business comD0TH the National City Bank and the Chase Na- munity.
"The spirit of speculation should be eradicated
tional Bank have this week announced their purfrom the management of commercial banks and compose of divorcing their banks from their respective
mercial banks should not be permitted to underwrite
security affiliates. In the case of the National securities except securities of the United States GovCity Bank the announcement simply took the form ernment and of States, territories, municipalities
of a statement issued on Tuesday night by James and certain other public bodies in the United States.
H. Perkins, Chairman of the Board of Directors
"The Federal Reserve System was founded for the
of the Bank, saying that the Board of the National purpose of serving the governmental and commerCity Bank and of the National City Company had cial life of the country. I think that all commercial
determined on that day on the policy of working banks should be members of the System, and that
toward the divorcement of the Bank and its security their management should be actuated solely by the
desire to carry out such purposes in a • sound and
affiliate, and that it would be sought to accomplish
conservative manner. In my opinion not until the
this as soon as it could be done in an orderly manner reforms above-mentioned have been put into effect
without sacrifice of the assets of the company and will this result be obtained."
of the value which exists in its facilities for the
For ourselves we cannot see that the private partpurchase and distribution of investment securities nership engaged in an investment business stands
of the highest grade. In pursuance of this policy, on anywhere near the same footing in its relations
it was stated;from this time on, no executive officer with the banks with which it deals that the security
of the bank would sit upbn the Board of the Com- affiliate does in its relations with the bank which
pany, and no executive officer of the Company holds the whole stock of the affiliate and controls
.
,
would sit upon the Board of the Bank.
its policy and, indeed, its every act. In the case of
In the case of the Chase National Bank the an- the National City Bank the basis of criticism was
nouncement came from Winthrop W.Aldrich, Chair- the free
and ready way in which millions upon milman of the Governing Board and President of the lions passed back and forth between
the bank and
Bank, who went into the philosophy of the whole the affiliate. In the case the
private partnership,
of
thing. Mr. Aldrich is a close student of banking anything of the kind
would be entirely out of the
affairs and has a wide knowledge of economics, question, no matter
how close the relationship beand we had occasion only last week to commend tween the bank and the partnership.
the paper which he read a short time ago before
Then again, the partnership is risking only the
the United States Senate Finance Committee, capital of the different partners; whereas the bank
which is making inquiry into economic conditions. has thousands of shareholders who suffer with
the
In this paper which we regard as one of the ablest principals from poor judgment or bad management.
documents submitted -to the committee, he made In the case of the National City Bank the testimony
a diagnosis of the country's unfortunate condition showed that there had been an active speculation in
of to-clay that was as convincing as it was com- the shares of the stock, and that the $20.00 shares
1604
Financial Chronicle
March 11 1933
of the bank had during the period of collapse terly dividend on its common shares. The American
dropped from $580 a share to only $25 a share. In Rolling Mill Co. omitted the dividends on both the
cumul. pref. and 6% cumul. pref. series B stock.
the case of the partnership, on the other hand, it is
S. S. Kresge Co. omitted the quarterly dividend on
only the capital of the partners, as already stated,
that is at stake, and not that of others. In that common. The Industrial Rayon Corp. omitted the
respect the difference between the two is as wide quarterly dividend on common. The L. A. Young
as the poles, and we cannot see why an investment Spring & Wire Corp. omitted the quarterly dividend
house which also has an ownership in a bank large on common. The Auburn Automobile Co. declared
enough to entitle it to representation on the Board a dividend of only 50c. a share on common payable
should not be given such representation the same April 1, which compares with 2% in stock and $1 a
as would be accorded to a commercial house also share in cash paid each quarter from Jan. 2 1928 to
and including Jan. 2 1933. The National Dairy
having an ownership in bank stocks.
Another point comes up. If the commercial bank Products Corp. reduced the quarterly dividend on
is not to engage in the floating of securities because common from 50c. a share to 30c. a share. On
of the risk involved, is the commercial bank still March 8 the Wisconsin Power & Light Co. voted to
to be allowed to engage in making call loans on rescind their recent action on the preferred divisecurity collateral on the Stock Exchange? If not, dends due March 15, and have deferred any further
how is the commercial bank, at least at the financial action on the declaration of dividends until the
centers, to find employment for its vast mass of financial condition has been stabilized and until
funds? It cannot do so by the making of commercial it is known more definitely what the banks are going
loans alone, since its resources are so vast. But to be able to do. On Feb. 28 the company had dethe risk in the case of call loans, or time loans either, clared a dividend of $1 a share on the 6% cumul.
for that matter, on security collateral is also great pref. stock, and $1.16 2/3 a share on the 7% cumul.
on occasion, especially in times of panic and severe pref. stock. The Lexington Utilities Co. also
collapse in prices. We mention these things simply rescinded the recent action of the Board on the
for the purpose of showing that eliminating the quarterly dividend of 1%70 due March 15, on its
/
speculative element in a commercial hank of large 61 2% cumul. pref. stock.
simple as it appears to be on its face.
size is not so
HE returns of the Federal Reserve banks this
week, already partly discussed above, show
LL the security exchanges of the country have
of some big changes growing out of and reflecting the
been closed the present week on account
the banking troubles, and therefore there are no banking suspensions throughout the United States,
Stock Exchange prices. In London the security and which imposed such urgent demands for Reserve
markets, of course, functioned the same as usual, credit and for Reserve note issues on all parts of the
and there prices for American securities have shown Federal Reserve System. Looking first at the Rea rising tendency in face of the banking collapse serve note issues, the amount of Reserve notes in
here. The commodity exchanges have also been circulation increased no less than $635,484,000 durclosed, and hence quotations for many commodities ing the week; this followed $579,274,000 increase
are likewise absent. In Winnipeg, dealings in grain last week and $109,103,000 increase the week before.
have been proceeding as usual, and wheat prices have In the three weeks the total of Reserve notes in
been rising, the May option for wheat in Winnipeg circulation rose from $2,891,145,000 to $4,215,2
1
/
4
1
/
yesterday closing at 52 c. against 48 c. on Friday 006,000. The further increase of $635,484,000 this
suspensions have, of course, week is found to have extended to all the different
of last week. The bank
been highly prejudicial to the carrying on of busi- Federal Reserve Districts, with the heaviest inness in this country, and the "Iron Age" reports that creases at New York and Chicago. At New York
the steel mills of the United States have been en- the increase was from $798,264,000 to $969,626,000,
gaged to only 15% of capacity as against 17% last being an addition of $171,362,000, and at Chicago
week and 19% the week before. Dividend reduc- from $920,238,000 to $1,113,258,000, being an adtions and omissions have at the same time contrib- dition of $193,020,000. At Cleveland the addition
uted their quota to the tribulations of the day. The for the week was $40,371,000; at Richmond, $39,Detroit Edison Co. voted to postpone for two weeks 902,000; at Atlanta, $32,644,000; at St. Louis, $21,action on the quarterly dividend on the common 026,000; at Minneapolis, $17,670,000; at Kansas
stock, because of difficulties which might be encoun- City, $35,141,000; at Dallas, $11,933,000; at San
tered in transferring payments to stockholders. The Francisco, $34,287,000; at. Boston, $26,950,000, and
General Printing Ink Corp. also voted to _postpone at Philadelphia, $12,378,000.
In the volume of Reserve credit outstanding, as
the declaration of the quarterly dividend due on
cumul. pref. stock because of measured by the bill and security holdings, there has
April 1 on the $6
present financial conditions; likewise, Tri-Conti- also been a further large increase. The total of the
nental Corp., due to the uncertainty as to the means bill and security holdings expanded no less than
inby which dividends can be disbursed to stockholders, $781,111,000, and this came after $591,095,000
these bill and security holdings last week
omitted the declaration of the quarterly dividend crease in
and $214,382,000 the week before, with the result
due April 1 on the $6 cumul. pref. stock.
ReIn addition, dividend omissions in the ordinary that in the three weeks combined the volume of
serve credit outstanding has jumped from $2,131,course have been unusually numerous. Thus, the
Associated Oil Co. and the Tide Water Oil Co., both 262,000 Feb. 15 to $3,717,850,000 March 8. The fursubsidiaries of the Tide Water Associated Oil Co., ther increase this week followed in part as a result
of
omitted the quarterly dividends on their common of some new acquisitions United States securities,
the quarterly divi- which during the week rose from $1,835,963,000 to
stocks, and the latter company,
. In the main, however, the expansion
%
2
/
dend of 11 on its own 6% cumul. cony. pref. stock. $1,880,794,000
Traction Co. passed the quar- in the volume of Reserve credit outstanding has been
The Federal Light &
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Volume 136
Financial Chronicle
the result of discounting by the member banks and
the purchase by the Reserve banks of further blocks
of bankers' acceptances. And this has been true
also of the additions in the two preceding weeks.
During the last three weeks, that is, from Feb. 15
to March 8, the discounts at the 12 Reserve banks
have jumped from $286,373,000 to no less than
$1,413,936,000. This shows that during the period
of great stress the member banks availed very freely
of the facilities of the Federal Reserve banks. At
the same time the Reserve banks by their own operations in the purchase of bankers' acceptances added
still further to the volume of Reserve credit outstanding by the purchase of acceptances, the holdings of which increased from only $30,784,000 Feb.15
to $417,289,000 March 8.
At times of extreme stress the Federal Reserve
Bank of New York is always a Reserve institution
on which the pressure is greatest, and the feature
in the return for the New York Reserve Bank is that
the latter was called upon so heavily for aid that
it was obliged to have rio less than $210,000,000 of
its bills rediscounted by other Federal Reserve
banks. It is interesting to see at what Reserve banks
the New York Reserve institution obtained this accommodation. A study of the statement shows that
$150,000,000 of the bills were rediscounted by the
Federal Reserve Bank of Chicago; $25,000,000 by
the Reserve Bank of Cleveland; $20,000,000 by the
Reserve Bank of Boston, and $15,000,000 by the
Reserve Bank of St. Louis. Even as it is, the New
York Reserve institution shows its reserve ratio
down to 41.4% the present week, and except for the
rediscounting referred to, the ratio would have
fallen still lower.
Gold holdings of the 12 Reserve institutions were
further reduced during the week from $2,892,083,000
to $2,683,539,000, and as a result of this loss of
gold, concurrent with the big expansion in the volume of Reserve notes outstanding, the ratio of total
reserves to deposit and Federal Reserve note liabilities combined, dropped during the week from 53.5%
to 45.6%. The decline in ratio would have been yet
larger, except that the deposit liabilities were reduced during the week from $2,157,190,000 to $1,951,222,000, this following entirely from a falling off in
member bank reserves from $2,038,228,000 to $1,799,762,000. The holdings of United States Government
securities as part collateral for Federal Reserve
notes increased during the week from $661,900,000
to $886,400,000. The holdings of acceptances for
account of foreign central banks diminished slightly
during the week, falling from $29,398,000 to $28,051,000. On the other hand, foreign bank deposits
with the Federal Reserve institutions increased from
$41,956,000 to $49,175,000.
1605
maining gold standard countries, and gold mining
stocks were sharply lower on the London and Paris
markets. Innumerable dispatches from the leading
financial centers of Europe made it clear that the
responsible observers on the other side of the Atlantic had no genuine apprehensions regarding inflation here. The actions of the several markets,
however, leave no doubt that a part of the speculative community in Europe viewed matters otherwise. The advances in equities were not carried
very far, owing to the assurances against inflation
given by the new Administration in Washington and
the vigorous steps for control of the banking crisis.
The unsettlement caused by the American crisis
was reflected in far off Japan, where all stock exchanges closed Monday to Thursday, except for
limited dealings in Japanese Government bonds.
No pronounced price changes were reported.
Prices on the London Stock Exchange were well
maintained, Monday, despite a decision of the
London banks to suspend dealings in the United
States dollar. International stocks moved forward
after a sluggish start, but most of the gains were
lost in a late reaction. Gold mining issues fell
sharply owing to the speculative apprehensions regarding the gold standard. British funds and the
domestic industrial stocks were virtually unchanged.
Dealings Tuesday were more active, with the trend
upward. Gold mining stocks recovered on a better
feeling regarding the gold outlook, and AngloAmerican trading favorites also gained. British
funds showed modest improvement, and a similar
tendency appeared in home industrial shares. The
upward tendency was continued in Wednesday's
session, nearly all sections of the market advancing.
Gold mining stocks were in good demand for
South African account. British funds improved on
better revenue figures of the Treasury, while industrial shares likewise gained. There was modest buying of Anglo-American trading favorites. The trading Thursday reflected renewed uncertainty regarding the monetary outlook in the United States.
Gold mining shares slumped after a good start, while
buying orders increased for both domestic and international equities, with greatest attention centered
on stocks like International Nickel, which might
gain handsomely from the commodity rise to be expected in any inflationary movement here. British
funds advanced at first, but the gains were lost in
later dealings. Price changes at Londan yesterday
were unimportant. British funds were steady, while
industrial stocks lost a little ground.
Speculation in stocks was stimulated on the Paris
Bourse, Monday, by the developments in the United
States. Leading equities, such as Suez Canal, Rio
Tinto and Royal Dutch, advanced sharply, but a
UROPEAN stock markets registered no violent contrary
movement developed in the international
reactions to the banking developments in the gold
mining shares. The tendency was even more
United States, this week, notwithstanding the impronounced Tuesday, as the French market appeared
portance naturally attached to the nation-wide mora- to
be convinced that day of a devaluation of the
torium. The trend of quotations for equities was
American dollar. There was a general desire to
generally upward at London, Paris and Berlin,
convert cash into stocks, which advanced steadily,
especially in the international sections. This ten- with
all categories sharing in the gains excepting
dency, like the recessions in the unofficial quota- the gold
mining issues. Sentiment regarding the
tions on dollar exchange, was due to a very wide- dollar
changed on the Bourse, Wednesday, and
spread fear that the banking crisis would be fol- stocks
listed on the Paris Exchange lost ground.
lowed by inflation in the United States. Any lapse Trading
was dull, with closing figures the poorest
from the gold standard by this country, it was fur- of the day. Further
losses occurred in Thursday's
ther reasoned, would seriously affect the few re- session, owing to the
reports from Washington of
E
1606
Financial Chronicle
vigorous measures to reopen banks here and avoid
inflation. The decline was limited, however, as dealings were very modest. The declining tendency was
resumed on the Bourse yesterday, but a rally at the
end kept the losses to small proportions.
The Berlin Boerse was active and substantially
higher, Monday, as the speculative community appeared to be well satisfied with the outcome of the
general elections in the Reich the previous day. The
whole list was active and strong, leading issues gaining from 2 to 7 points. Fixed-interest securities also
were actively sought. The activity 'was even more
pronounced Tuesday, observers remarking that a
wave of returning confidence seemed to move over
the market. Reports from the United States caused
a little anxiety, but the external developments were
overshadowed by the satisfaction in most Boers.e
circles regarding the German elections. Further
advances were scored in Wednesday's dealings, but
on a more moderate scale. Activity also was less
pronounced. Equities were in fair demand, and the
average price advance was about a point, but bonds
were neglected. Unsettlement followed in Thursday's session, most securities moving lower. Reichsbank shares were off 10 points on rumors of a parliamentary move for abolishing the autonomy of the
institution and making it exclusively State-owned.
The precipitate decline unsettled other sections of
the market, and some of the wide previous gains
were lost. After an uncertain opening, prices advanced on the Boerse yesterday.
FURTHER "desperate effort" to save the General Disarmament Conference from complete
collapse is being made, currently, by the leading
statesmen of Great Britain and France. The conference is now in its fourteenth month, and late
reports from Geneva indicate that there is no more
prospect now of an agreement on a real measure of
disarmament than there was at the beginning of
last year. "Since its first anniversary on Feb. 2
the conference has balked as it neared each decision
on principle," a Geneva dispatch to the New York
"Herald Tribune" remarks. "Most of the delegations desire adjournment, but even here they cringe,
no one of them risking the initiative," the correspondent added. In this situation the London Government announced, March 3, that Prime Minister
Ramsay MacDonald and•Foreign Secretary Sir John
Simon would go to Geneva in an endeavor to "save"
the conference. The two British officials left London early Thursday for Paris, where they conferred
at great length with Premier Edouard Daladier and
Foreign Minister Joseph Paul-Boncour. Before
leaving London, Mr. MacDonald said: "We are
going to Geneva to try to help the disarmament
conference get some results. It may not be all We
want, but we hope it will be a good contribution
toward world peace." Fears in France and Great
Britain that Germany may announce its intention
to re-arm are believed to be among the chief reasons
for the new effort to achieve some results at Geneva.
The League Secretariat announced the receipt of a
communication from Japan, Wednesday, in which
the Tokio Government explained that it will continue to participate in the work of the General Disarmament Conference, even though the Japanese
representatives were withdrawn from the Assembly
of the League.
A
March 11 1933
NE of the strangest election campaigns ever
held ended in Germany last Sunday, when
the people of the Reich went to the polls and indicated their choice of parliamentary representatives.
The methods of suppression and intimidation utilized by the National-Socialist party of Adolf Hitler,
and the Nationalists of Dr. Alfred Hugenberg, resulted in a sufficient number of votes for this
"Harzburg coalition" to insure its control of the
Reichstag. The two parties of the extreme Right,
which are openly opposed to republicanism, obtained
the support of a clear majority of the German voters,
who flocked to the polls in unprecedented numbers.
Two days after the election the old Imperial flag
of black, white and red was displayed in many leading cities of the Reich, usually together with the
swastika emblem of the Nazis, or Fascists. These
developments make it plain that German democracy
is prostrate and helpless. And yet, in the background, looms the figure of President von Hindenburg, who conferred at length, Tuesday, with ViceChancellor von Papen an three other members of
the Cabinet. The precise significance of the election
results in international affairs remains to be determined. Great Britain and France are inclined to
view the whole matter with manifest disquietude,
while Italian observers expressed deep satisfaction
over the victory of the German Fascists. The friendship between Germany and Soviet Russia has
already cooled to a degree because of Chancellor
Hitler's drastic attempts to suppress Communism
in Germany.
The election last Sunday was quiet in contrast
with the turbulent campaign. There was no relaxation, in the final days of the campaign, of the oppressive methods of the Nazis. Socialists and Communist candidates for Reichstag seats were granted
no opportunity to plead their causes, all newspapers
of Marxist persuasion being suspended and most
meetings forbidden. Almost equally severe measures were employed against the Catholic Centrist
party of Dr. Heinrich Bruening. "The election is
strange," a Berlin dispatch to the New York "Times"
remarked,"because the dominent forces therein have
announced in advance that if the result is unfavorable to them it will not affect their tenure of office.
It is stranger still because the most extraordinary
measures have nevertheless been taken to insure
that the outcome shall be to their liking." On the
eve of the balloting symbolic bonfires were lighted
by Nazis on eminences throughout the Reich to signalize the "awakening of the German nation."
Approximately 39,000,000 voters out of the eligible
44,000,000 in the Reich went to the polls last Sunday,
and of this number 17,300,000, or nearly 44%, voted
for the Nazi candidates, while a further 3,100,000
voted for their allies, the Nationalists. This gives
the Nazis 288 seats in the Reichstag, and the Nationalists will have 52, or a total of 340 supporters
of the Harzburg bloc. This is a few votes more than
the necessary 50% of the total Reichstag membership of 652. The popular vote of the Nazis increased
5,500,000 over the total rolled up by the party in the
national election of last November, while the
Reichstag membership of the group increased by 92.
The Nationalists lost about 100,000 votes in comparison with last November,and two Reichstag seats
also were lost by the party. The only other significant change was a sharp decline in the Communist
vote, this party polling only 4,800,000 votes against
O
Volume 136
Financial Chronicle
nearly 6,000,000 four months ago, with its Reichstag
representation showing a.commensurate drop from
100 to 81. Dr. Bruening's Catholic Centrist group
gained a little, and will have 73 votes in the new
Reichstag. The Social Democrats maintained their
strength and will have 120 representatives. Elections for the Prussian Diet, held the same day,
showed quite similar results, with the combined
forces of the Nazis and the Nationalists in easy
control of the State Legislature. No date so far has
been set for the first meeting of the newly-elected
Reichstag. It is possible that this question was
discussed by the President with the Nazi leaders,
Tuesday, but no information was disclosed regarding the conference.
According to available indications, the foreign
policy of the Hitler Government in Germany will
be far more vigorously nationalistic than those of
any of the predecessor regimes since the World War.
It is likely to contrast sharply, dispatches state,
with the mild and conciliatory methods of the late
Gustav Stresemann, and Dr. Heinrich Bruening.
The work of the Disarmament Conference will constitute the first question of foreign policy to be
taken up by the Hitler regime, a Berlin dispatch to
the New York "Herald Tribune" stated. The German Government is said to be highly dissatisfied
with the slow progress being made toward realizing
the Reichs's claim to armaments equality, which
theoretically was conceded by the former Allies last
November. The Berlin correspondent of the New
York "Times" maintains, however, that German
foreign policy is not likely to prove very disturbing.
There are numerous internal problems pressing for
adjustment, and these may well keep the foreign
affairs of the Reich in the background for the time
being, it is argued.
Disappointment and anxiety were caused in
France by the victory of the extreme nationalist
factions in Germany. "No Frenchman can believe
that Herr Hitler's accession to virtually full power
can mean any good for France," a Paris report to
the New York "Times" remarks. It was assumed
in the French capital that Hitler will move for
nullification of the Versailles treaty. In a London
dispatch to the New York "Times" it was indicated
that the German election results and the methods
whereby they were achieved have almost completely
alienated British sympathy with present-day Germany. "British opinion now feels that France was
justified in her suspicions of German militarism
and her clamor for security," the report states.
"Great Britain's warm friendliness for republican
Germany has given way to deep distrust, and at the
same time the Anglo-French entente stands stronger
than ever with the British people and Government."
The Fascist triumph in Germany naturally was
acclaimed in Italy, but it was noted that press comments were somewhat more restrained than on the
occasion of Hitler's accession to power. This was
probably due to a request of the Government, occasioned, according to some reports, by a desire to
counteract the growing belief in France that Italy
and Germany may form a general alliance. In a
Moscow dispatch to the New York "Times" it was
stated that the Hitler campaign methods and his
victory have made serious inroads on the spirit of
mutual confidence and economic co-operation between the Soviet Union and Germany.
1607
The United States Government found it necessary
this week to protest against further and more extensive use of the Nazi methods of intimidation, as
six cases were reported where American citizens
were molested by the over-zealous Fascists. Washington dispatches indicate that five of the six complainants of rough treatment at the hands of the
Nazis are of the Jewish faith. In one instance the
uniformed Nazis invaded the Berlin residence of
an American who owns property in Berlin and
forced him at the point of a revolver to sign an order
recalling an eviction decree, involving a Nazi tenant
who refused to pay rent. Two formal protests were
lodged with the Berlin Government by United States
Ambassador Frederic M. Sackett, and assurances
were given that further incidents of a like nature
would be prevented.
REECE was ruled by a military dictatorship
for a brief period, early this week, when the
results of a general election displeased General
Nicolas Plastiras, organizer of the political coup of
1922. General Plastiras proclaimed a dictatorship
'Monday, but his rule was abruptly terminated the
following day and Constitutional procedure reinstituted by General George Bondylis, who overthrew
the dictator, General Pangalos, in 1926. The election last Sunday was a simple contest between the
united list of Government parties, headed by Premier Eleutherios Venizelos and the Royalist Opposition groups, headed by former Premier Panayoti
Tsaldaris. The voting favored M. Tsaldaris, but
before the results could be generally proclaimed,
General Plastiras announced a dictatorship. His
coup was attributed by observers to his fear that the
Royalists might seek vengeance for his execution of
five Royalist Ministers in 1922. Two army regiments and one squadron of the Air Corps were said
to have supported General Plastiras. General Rondylis moved energetically to prevent the coup, and
he quickly found sufficient military backing for a
successful thrust at the dictatorship. General Plastiras fled and could not be found by officers who
sought to arrest him on charges of high treason.
President Alexander Zaimis appointed a Cabinet
of Generals and Admirals, Monday, to deal with the
situation, and this group, headed by General Othonaios, was the nominal Government for one day.
After assurances were given, Wednesday, that the
brief rule of General Plastiras was ended and that
order prevailed throughout the country, President
Zaimis requested M. Tsaldaris, the Royalist leader,
to form a Cabinet.
G
ONQUEST of the Chinese Province of Jehol has
virtually been completed by the doughty warriors of Japan, and the area, rich in minerals, has
been added to the domain called Manchukuo which
Japan has carved out of the new China, north of
the Great Wall, in defiance of world opinion. Chinese defenses of the Province either were totally
inadequate, or else their effectiveness was vitiated
by treachery. No resistance whatever was offered
to the Japanese forces as they entered the capital,
Chengteh, early last Saturday, just one week after
the military campaign for occupation of Jehol
began. Dispatches from Peiping stated bluntly
that the capital was lost through treachery, and the
secret flight of the Governor of Jehol, General Tang
C
1608
Financial Chronicle
Yu-lin. Whether true or not in this instance, the
report is rather in keeping with customary Chinese
procedure in such matters. The expeditiousness of
the Japanese movement from the borders of Manchuria to Jehol City (Chengteh) was equaled by
the celerity with which the final part of the military
campaign was carried out. Japanese troops
promptly started in pursuit of the retreating Chinese last Sunday, and by Wednesday all of the territory north of the Great Wall had fallen into the
hands of the invaders. The ground occupied included some areas not included in Jehol, but such
small distinctions are not likely to carry weight
with the Japanese military leaders.
The Japanese troops halted, Wednesday, on the
northern side of the Great Wall of China, their lines
stretching 250 miles along this wonder of the ancient
world from the Yellow Sea to Inner Mongolia. The
imminent possibility existed last week that the invaders would continue and occupy parts of old
China, south of the Great Wall, and notably the
cities of Peiping and Tientsin. It was reported in
Shanghai late last week that the Japanese military
leaders had demanded evacuation of Tientsin by the
Chinese, under the terms of the Boxer protocol. The
demand was rejected in a sharp reply by the Nanking
Nationalist Government, it was stated. Tokio reports of this week indicated that the Foreign Office
and the War Office considered the military operations practically ended. The lack of any disturbances in North China that might endanger Japanese
residents was said to make needless any advance
beyond the Great Wall. The Manchurian War Lord,
Marshal Chang Hsiao-liang, who was instructed by
the Nanking Government to defend Jehol, was subjected to a good deal of criticism in China after the
fall of the Province, and he resigned the command
of the Northern Chinese armies Wednesday. General Chiang Kai-shek, the real ruler of China, was
said, Thursday, to be planning the recapture of
Jehol, but these reports probably were due to "facesaving" pronouncements.
The embargo on arms shipments to both Japan
and China, which the British Government imposed
unexpectedly on Feb. 27, was the subject of an
interpellation in the House of Commons, Monday.
Foreign Secretary Sir John Simon was asked
whether there appeared to be any likelihood of other
countries taking a similar attitude. "There is no
indication of a joint international agreement in this
matter," Sir John replied, "and the only permanent
arrangement this country can make is one that will
be generally accepted by other arms producing countries." International aetion of any kind with respect to Manchuria and Jehol was made more remote
than ever, this week, when the Soviet Government
replied negatively to the League of Nations invitation to participate in the deliberations of the Committee of Twenty-one, named several weeks ago to
find means for adjusting the dispute between China
and Japan. The lack of diplomatic relations between the Soviet and many of the countries represented on the Committee was given as the main
reason for the Soviet rejection. The note, sent
Tuesday, added that the Soviet Government will
always solidly support the actions and suggestions
of international bodies and separate governments
aiming to solve the conflict and safeguard peace in
the Far East.
March 11 1933
HERE have been no changes the present week
in the discount rates of any of the foreign
Central banks. Present rates at the leading centers
are shown in the following table:
T
DISCOUNT RATES OF FOREIGN CENTRAL BANKS.
Country.
Austria.-- _
Belgium
Bulgaria_
Chile
Colombia
Czech oslovakia____
Danzig_ _ _.
Denmark_ _
England__
Estonia.—
Finland.-France_ ___
Germany. _
Greece
Rate in
Effect
Date
Marl() Established.
Preslow
Rate.
6
354
854
454
5
Aug. 23 1932
Jan. 13 1932
May 17 1932
Alla 23 1932
.
Sept. 19 1932
354
4
334
2
534
6
234
4
9
Jan. 25 1933 434
July 12 1932 5
Oct. 12 1932 4
June 30 1932 234
Jan. 29 1932 eyi
Jan. 31 1933 7
Oct. 9 1931 2
Sept.21 1932 6
Den. 3 1932 10
7
254
9.4
554
6
Country.
Rate in
Effect
Date
Mario Established.
Holland__ _
Hungary__
India
Ireland....
Italy
Japan
Lithuania_
Norway_ _ Poland_ _ _ _
Portugal
Rumania _ _
South Africa
Spain
Sweden
Switzerland
2H Apr. 18 1932
434 Oct. 17 1932
334 Feb 111933
3
June 30 1932
4
Jan. 9 1933
4.38 Aug. 18 1932
7
May 5 1932
4
Sept. 1 1932
6
Oct. 20 1932
634 Apr. 4 1932
7
Mar. 3 1932
4
Feb. 21 1933
Oct. 22 1932
6
334 Sept. 1 1932
2
Jan. 22 1931
Pro1110t18
Rate.
3
6
4
334
5
6.11
734
434
734
7
8
6
Of
4
234
In London open market discounts for short bills on
Friday were /@11-16%, as against 11-16@4% on
Friday of last week, and 11-16@,3 % for three
4
months' bills, as against 11-16@%% on Friday of
last week. Money on call in London on Friday was
%%. At Paris the open market rate remains at
1%, and in Switzerland at 13/2%.
HE Bank of England statement for the week
ended March 8 shows a gain of £9,734,344 in
gold holdings which brings the total up to the large
amount of £160,701,080. This compares with £120,566,933 on Jan.4 and £121,455,416 on March 9 1932.
Since circulation expanded £4,043,000, the increase
in reserves was reduced to £5,691,000. Public deposits fell off £11,457,000 while other deposits rose
£8,086,629. The latter consists of bankers' accounts
which rose £8,103,345 and other accounts which fell
off £16,716. The reserve ratio is up to 44.65% from
40.30% a week ago; the ratio was 31.19% last year.
Loans on Government securities fell off £7,795,000
and those on other securities £1,263,934. Of the
latter figure, £203,712 was in discounts and advances and £1,060,222 in securities. The discount
rate is unchanged at 2%. Below we furnish a comparison of the different items for five years:
T
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
March 8
1933.
March 9
1932.
March 11
1931.
March 12
1930.
March 13
1929.
•
£
£
£
£
£
Circulation
a 363,327.000 354,475,000 350,326,938 350,457,635 355,004,507
Public deposits
14,984,000 7,835,625 8,757.239 8,987.199 11.933.957
Other deposits
147,102,917 126,747,150 92,743,263 95,744,104 101,015,197
Bankers' accounts_ 112,577,469 93.565.017 59.274,585 59,001.400 63,384.137
Other accounts
34,525,448 33,182,133 33.468.678 36.742.704 37,631,060
Govt.securities
78,705,258 54,370,906 30.434.684 37,331.563 44,836.855
Other securities
29,244,015 56,475.363 37,947,359 23.530.114 29.326,701
Disct. dr advances_ 11,761,156 11,545.035 9,238.678 7,959,833 12,517.418
Securities
17.482,859 44,930,328 28.708.681 15,570.281 16.809,283
Reserve notes dr coin 72,373.000 41.980,416 51.402,090 62.175.203 57.064.373
Coin and bullion
160,701,080 121,455,416 141.729,028 152,622,838 152,068,880
Proportion of reserve
50.52%
to liabilities
44.65%
31.19%
59.36%
50.64%
4%
Bank rate
2%
3%
411.
554%
a On Nov. 2£r 1928 the fiduciary currency was amalgams ed with Bank of England
note Issues adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.
HE Bank of France statement for the week ended
March 3, reveals a gain in gold holdings (the
first since Dec. 9 1922) of 94,586,739'francs. Total
gold holdings are now at 81,111,281,262 francs, in
comparison with 75,737,752,636 francs last year
and 56,082,737,848 francs the previous year. Credit
balances abroad, French commercial bills discounted
and creditor current accounts show decreases of
147,000,000 francs, 259,000,000 francs and 1,545,000,000 francs respectively. A large increase is
recorded in note circulation, namely 1,491,000,000
francs. Total circulation is now at 85,478,193,470
francs, as compared with 83,452,267,145 francs a
year ago and 78,328,213,785 francs two years ago.
An increase appears in bills of exchange and checks
of 127,000,000 francs and in advances against secur-
T
Financial Chronicle
Volume 136
ities of 81,000,000 francs. The proportion of gold
on hand to sight liabilities stands this week at 77.33%,
last year it was 68.84%. A comparison of the
various items for three years appears below:
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Changes
for Week.
Mar. 3 1933. Mar.4 1932. Mar.6 1931.
Francs.
Francs.
Francs.
Francs.
+94,586,739 81,111,281,262 75,737,752,636 56.082.737,848
—147,000,000 2,454,754,518 4,833,383,575 8,954,789,800
Gold holdings
Credit bals. abroadaFrench commercial
—259.000,000 3,043,339.666 4,499,024,878 8.303.876.728
bills discounted
bBilLs bought abroad +127,000,000 1,928,479,414 8,903.286,199 19.361.161,455
+81,000,000 2,660,296.051 2.802,935.348 2,951.522.803
Adv. agent secure
Note circulation.__ _ +1.491,000.000 85,478,193,470 83.452.267,145 78.328,213.785
Credit current accts. —1,545,000,000 19,411,525,641 26.664.075.21223.337.972,673
Proportion of gold
on hand to sight
55.16%
88.84%
77.33%
+0.13%
liabilities
a Includes bills purchased in France. b Includes bills discounted abroad.
HE Bank of Germany in its statement for the
first quarter of March reveals a decline in gold
bullion of 19,269,000 marks. The total of buland
lion is now at 749,657,000 marks, in comparison with
880,006,000 marks last year and 2,285,393,000 marks
the previous year. A decrease appears in reserve in
foreign currency of 51,319,000 marks, in advances
of 193,423,000 marks, in other assets of 187,371,000
marks, in other daily maturing obligations of 66,151,000 marks and in other liabilities of 164,905,000
marks. Notes in circulation show a reduction of
62,594,000 marks, reducing the total of the item to
3,293,275,000 marks. Circulation a year ago was
4,178,896,000 marks and two years ago 4,144,808,000
marks. Bills of exchange and checks, silver and
other coin, notes on other German banks and investments register increases of 142,728,000 marks,
11,052,000 marks, 3,888,000 marks and 64,000
marks respectively. The proportion of gold and
foreign currency to note circulation is down to 25.8%
from 27.4% last quarter. Below we furnish a comparison of the various items for three years:
T
REICHSBANK'S COMPARATIVE STATEMENT.
Changes
for Week.
Assets—
Gold and bullion
Of which depos. abroad
Reserve In foreign curt.
Bills of exch. and checks
Silver and other coin _ _
.
Notes on other Ger. bks.
Advances
Investments
Other assets
Liabilities—
Notes In circulation _ _ __
Other daily matur.oblig.
Other liabilities
Propor.of gold & foreign
curr, to note circurn_
Mar. 7 1933. Mar. 7 1932. Mar. 7 1931.
Retchsmarks. Reichsmark:. Retch:marks. Reichsmark:.
—19,269,000 749.857 000 880.006.000 2.285.393,000
No change
64.607.000 207.638.000
38,116,000
—51,319,000 100.653,000 156.409,000 189.424,000
+142.728.000 2,602.436,000 3.302,496.0002.043.111.000
+11,052.000 218,293,000 133,582.000 186.163.000
6,314,000
21.257.000
8.528,000
+3,888.000
84.608.000
85,813,000 218,430.000
—193,423,000
+64,000 401.068,000 161.752.000 102.264.000
—187,371,000 641,032,000 878,514.000 549,633.000
—62.594,000 3,293,275,000 4,178.896,000 4.144.808.000
—86.151.000 336.200,000 318,872.000 301.308.000
— 164,905,000 810,559,000 750,404,000 338,962,000
—1.6%
25.8%
24.8%
59.7%
in the New
dealings of any
York money
all
THERE were nomarket this week,kindtransactions
being suspended on account of the nation-wide banking moratorium declared by President Roosevelt
late last Sunday as of Monday morning. Reopening of the banks, or at least of the sounder institutions, is now looked forward to by next Monday,and
it is expected that the money market will resume
concurrently. An important monetary event was
the fact that the Federal Reserve Bank of New
York made no further advance in its discount rate
/
on Thursday, leaving it unchanged at 31 2%.
TERLING exchange is firm in all markets.
Foreign exchange trading in the New York
market was suspended on Saturday last following
Governor Lehman's proclamation of a two-day bank
holiday from Saturday, March 4, until Tuesday,
March 7. President Roosevelt's proclamation dAted
March 5, ordering a four-day bank holiday and
placing an embargo on gold would of course have
resulted in world-wide suspension of dollar exchange
S
1609
transactions had not Governor Lehman's earlier
announcement already brought about this result.
These proclamations, together with accounts of the
money and banking situation, are given in full in
other columns of this issue. Dollar quotations were
suspended in London and Paris at 11 a. m. Greenwich
time on Saturday last. For the hour or more previous
practically no business was done, owing to the general
business uncertainty. London is the principal foreign
exchange market and the decision of the London
bankers led to a virtual suspension of dollar trading
throughout the world. No foreign exchange quotations have been available in New York during the
week. Yesterday's nominal market can not be
accepted as a guide to the trend of foreign exchange.
Until the banking situation here is more fully resolved, foreign exchange traders can hardly be expected to take a technical position. Last week, it
will be recalled, sterling exchange had a range of
from 3.405 to 3.463/ for bankers' sight bills and the
4
4
range for cable transfers was between 3.403 and
were considered exceptionally
3.46/. These rates
firm and would have gone much higher but for the
active interference of the Exchange Equalization
Fund, operating especially in Paris, New York, and
Amsterdam to keep the rate from soaring.
On the basis of sterling quotations this week in
foreign markets the sterling-dollar rate would in all
probability have been quoted at around 3.50. It
would seem that all the operations of the Exchange
Equalization Account in the European markets were
directed toward holding sterling at this figure. The
London check rate on Paris, as frequently stated,
has for some time been maintained as nearly as possible at 88.0, though on several occasions it went
to around 88.90. The sharp upturn in money rates
in New York was recorded here last week on page
1429. At that time in commenting on the increase
in the New York Federal Reserve Bank rate from
2
to 31 % it was pointed out that in all probabA
ility the increase in the official rediscount rate in
New York might be followed by a marking up of
official rediscount rates in the European centers.
European dispatches indicate that there is a division
of opinion with respect to the course of money rates
there and many authorities are inclined to believe
that the increase in rates in New York arose from the
banking situation here and is local in character. It
is pointed out that there is not an excessive demand
for money in any European center for commercial
and industrial purposes, and hence no necessity for
raising official rediscount rates. Nevertheless some
bankers point to the fact that since European centers
followed New York in originally decreasing money
rates, they are likely to take advantage of the turn
in the world credit situation to mark up rates despite
the lack of demand for money. Hence London and
Paris are prepared for such a course, though foreign
funds during the past week have been flowing to
London in larger volume than at any time since the
suspension of gold by Great Britain in Sept. 1931.
The exceedingly strong position of the Bank of England with respect to gold holdings also portends an
easier money market.
Nevertheless, considering 'the changed trend of
events here, there are bankers who believe that the
London situation will be strengthened by an increase
in the Bank of England's rate and in open market
rates. Open market rates in London have been unworkably low for a long time. On Thursday call
1610
Financial Chronicle
money against bills in London was in supply at 1 %
A
down to 4%,two-months' bills at %% to 11-16%,
three-months' bills at
to 11-16% against 11-16%
to 4% on Wednesday,four-months' bills at 11-16%
3
to %% against %% to 'H% on Wednesday, sixi
months' bills at %%to 4% against 4% to 15-16%
7
7
on Wednesday. As frequently pointed out here,
during all the nervousness of the past few weeks in
Continental centers with regard to the dollar, London
banking authorities consistently showed a positively
affirmative position of confidence in the soundness
of the dollar. This was expressed by the steady
buying of dollars in the European centers. On
Saturday last and every day since, London bankers
insisted on all occasions on the intrinsic soundness of
the American position and their attitude has done
much to allay undue excitement abroad, so that
when the foreign exchange market here is again resumed in a complete orderly way it is expected that
the European dollar rates will rule lower than they
have been ruling in the past few weeks. However,
all factors indicate a firm undertone for sterling exchange and it is even possible that the trend is such
that the British authorities will find it desirable to
anchor the pound to gold sooner than may have been
contemplated only a few weeks ago.
The sound trend of events as they are likely to
develop here in the next few weeks will have a strong
tendency to compel London to a more immediate
reconsideration of the advisability of returning to
gold. The Bank of England now has gold holdings
of £160,701,000. In addition the Bank has large
earmarkings of gold in Paris and New York. It
is estimated that foreign banks have earmarked in
New York approximately $480,000,000 in gold and
it is believed that Great Britain exercises the chief
claim to these earmarkings. On Saturday last the
Bank of England bought £2,016,243 in gold bars, on
Monday £2,014,220, on Tuesday £3,282,639, on
Wednesday £42,364, and on Friday £973,802. It
is believed that these gold bars were acquired by the
Bank through the Exchange Equalization Fund and
that most of this gold came to the Fund through
earmarked metal in Paris and New York. The Bank
of England statement for the week ended March 9
shows an increase in gold holdings of £9,734,344, the
total standing at £160,701,080, which compares with
£121,455,416 on March 10 1932. The reserves of
the Bank of England now stand at £72,373,000, the
highest point in the history of the institution. The
previous high mark was £71,181,000 on June 25 1931.
The improvement in the ratio results of course from
the steady acquisition of gold by the Bank of England
chiefly through the Exchange Equalization Fund.
As the Bank of England purchases gold, Bank of
England notes are issued in turn on a pound for
pound basis. Some of the notes go into actual circulation, but the reserves of the Bank constitute
Bank of England notes held by the banking department as a reserve against deposits. The Bank's
reserve ratio stands at 44.65% as compared with
31.19% a year ago. This is the highest reserve ratio
reported by the Bank since 48.0% was reported as of
Sept. 17 1931 the week prior to the suspension of the
gold standard. The Federal Reserve Bank of New
York issued its usual weekly statement of the gold
movement as of the close of business on Wednesday.
Alfootnote pointed out that the statement included
transactions up to the bank holiday which began on
March 4. A supplementary statement of the gold
March 11 1933
movement at the Port of New York issued on Friday
of last week after the close of business reported a
decrease of $39,754,500 in gold earmarked for foreign
account.
At the Port of New York the gold movement for
the week ended March 2 to March 8, inclusive, as
reported by the Federal Reserve Bank of New York,
showed exports of $7,386,000, of which ,541,000
was shipped to Holland, $2,120,000 to France,
$650,000 to Switzerland, and $75,000 to Venezuela.
There were no gold imports. The Reserve Bank
reported an increase of $92,271,000 in gold earmarked
for foreign account. In tabular form the gold movement at the Port of New York for the week ended
March 8, as reported by the Federal Reserve Bank
of New York, was as follows:
-MARCH 8, INC.
GOLD MOVEMENT AT NEW YORK, MARCH 2
(Includes transactions up to bank holiday which began March 4.)
Exports.
Imports.
$4,541,000 to Holland
2,120,000 to France
650,000 to Switzerland
None.
75,000 to Venezuela
$7,386,000 total
Net Change in Gold Earmarked for Foreign Account.
Increase: $92,271,000
Canadian exchange on Friday of last week closed
in New York at a discount of 14%. As a result of
the bank holiday declared here beginning on Saturday,
March 4, United States dollars were bearishly
quoted in the Canadian centers at from par down to a
discount as great as 15%. These quotations, however, cannot be taken as strictly market reflections,
as they pertained almost altogether to the requirements of American tourists who found themselves
across the border. A recent Montreal dispatch
stated that the transfer of American funds to Canadian banks had assumed substantial proportions as
the banking unsettlement on this side became widespread.
EXCHANGE toonanthe inContinental countries, as
already explained
the account of sterling
end in New
exchange, came
the bank
York with
holiday which began on March 4. London checks
on Paris were in favor of sterling throughout the week.
The Exchange Equalization Account endeavored to
hold the rate around 88.0. Frequently it went
much higher than this figure, and at times fell below.
On Thursday the Paris check rate was quoted 87.625.
On Friday of last week it closed at 87.19, against
86.42 the week before. Dollar trading was suspended in Paris all week. The opinion was expressed
in responsible quarters in Paris in positive terms that
the dollar can easily be defended against all attacks
from abroad. According to Paris bankers, balances
now held in America by foreigners, especially by
French interests, are extremely small, and at the
moment speculators find the greatest difficulty in
selling dollars short because of lack of buyers. It
appears to be the opinion of responsible bankers in
Paris that with the resumption of normal trading the
franc should decline with respect to the dollar, as
the Franco-American commercial balance is decidedly
against France. There seems to be a renewal of
the disposition to hoard Bank of France notes, which
is giving some anxiety to the Paris authorities. The
revival of this course has doubtless been due both to
the heavy losses of gold by the Bank of France in
recent weeks and to a realization of the extent to
which hoarding was carried on here. Paris advices
state that foreign exchange transactions between
Volume 136
Paris and other markets have been greatly curtailed
in the past week as the result of uncertainties aroused
by the situation on this side. France continues to
send gold to London, although the outward flow has
been halted since Saturday last. The Bank of France
lost approximately 2,343,000,000 francs, or $91,800,000 in gold reserves since the outward movement
of gold began early in December. This gold went
almost exclusively to England. The Bank of France
statement for the week ended March 3 shows an
increase in gold holdings of 94,586,739 francs, the
total standing on March 3 at 81,111,281,262 francs,
which compares with 75,737,752,636 francs on March
4 1932.
German bankers reported a practical cessation of
foreign exchange trading in the Berlin market, due
not only to uncertainty as to the result of the bank
holidays here, but also to hesitancy following the
German elections on Sunday. The Reichsbank apparently continued to quote the dollar nominally at
4.18 until Tuesday, when it was marked 4.16, just
under gold parity. The price set was entirely arbitrary as there was no way to check it by comparison
with other foreign exchanges. Money is easier in
Berlin and under ordinary circumstances would
indicate a lower Reichsbank rate, but owing to
developments on this side Berlin business interests
are less hopeful of a reduction in the rate.
There have been no dollar quotations in the Italian
market since Saturday, March 4, when the last cable
quotation was received of 19.35 lire to the dollar,
compared with a recent average of 19.51. The
Italian market expressed the greatest confidence in
the outlook for the situation on this side.
•
XCHANGE on the countries neutral during the
war in foreign currencies is reported to be
largely at a standstill as a result of the bank holidays
here. On Saturday Amsterdam ceased to quote the
dollar, with its last rate at 2.463/ guilders to the
dollar. Saturday last was a full holiday in Madrid,
but the dollar was offered off the exchange at 11.86
pesetas and the quotation slid between 11 and 113.
There was no official quotation. In Denmark,
Sweden, and Norway the pound sterling was practically the only unit quoted this week, and it is
understood that from Saturday on the banks withheld payment for the time being on American checks
and bills. The Amsterdam market expresses the
greatest confidence in the outcome of affairs on this
side. Amsterdam dispatches stated that the gold
standard will be maintained in Holland as previously,
awaiting further developments here.
--•-XCHANGE on the South American countries
would, of course, have come to a standstill
owing to the bank holiday were it not for the fact
that these units are in any event negligible at this
time, as they have been only nominally quoted for
more than a year. Buenos Aires dispatches during
the week reported that bankers there were taken
greatly by surprise by the bank holiday proclamations here. Two branches of United States banks in
Buenos Aires were crowded on Wednesday with
depositors endeavoring to reopen savings accounts
which they had closed on'Monday and Tuesday, but
it is understood that the American banks refused to
accept the deposits and the depositors found it impossible to deposit elsewhere. Recently the managers
of the American banks had found it necessary to
E
E
1611
Financial Chronicle
reduce interest rates on savings deposits and were
reported as feeling a sense of satisfaction to have a
portion of excessive unusable funds removed. The
dollar was not quoted officially in Buenos Aires
during the week, but money exchange shops resumed
dealings in dollars, paying as high as 4.50 pesos per
dollar, compared with 4.80 before the bank holidays
in the United States. The Central Bank of Chile,
which controls all exchange operations, announced on
Wednesday that it was unable to make a statement
concerning the consequences in Chile of banking
readjustments here. No quotations were made
either officially or in the open market at Santiago on
the dollar, which dropped 30% in the few operations
made in the Street. Dispatches from Rio de Janeiro
stated that financial markets there were not affected
by the bank holiday in New York, nor was the branch
of the National City Bank in Rio de Janeiro greatly
bothered by excessive money withdrawals. The
"bootleg" exchange market as a whole was disrupted because buyers distrusted checks drawn
against American banks. The Banco do Brazil
further restricted exchange coverage and raised the
discount rate, bank officials explaining that the
measure resulted from lack of export bills and not
from conditions in the United States, which officials
believe will be satisfactorily settled.
XCHANGE on the Far Eastern countries was of
course more or less demoralized as a result of
the ,situation here. Japanese exchanges not only for
securities but for commodities closed down following
the news of the banking proclamation here. There
were no quotations on yen exchange here and it appears that the dollar was not quoted in Tokio. In
Shanghai and Hongkong, although the Chinese exchange banks were not quoting United States dollars
during the banking holiday, a limited business was
being done by speculators, giving the Chinese tael
an equivalent of 33.00, as compared with 28.94 on
March 3. Had the present difficulties not arisen,
the Chinese units would have been quoted at a high
figure in any event, as silver shot up to 29% cents
per fine ounce,official New York quotation (although
there was no trading), which compares with an
average quotation of 263/i cents per fine ounce last
week.
E
HE following table indicates the amount of gold
bullion in the principal European banks as of
Mar. 9 1933, together with comparisons as of the
corresponding dates in the four previous years:
T
Baas of—
1933.
1932.
1931.
1930.
1929.
£
121.455.416
605.902,021
40.015.750
89.948.000
60.854.000
72.310.000
72,777.000
65.436.000
11,439.000
8.160.000
6,559,000
£
141.729.028
448,661,902
103.887,750
96.625,000
57.309.000
37.170.000
40.462.000
25.718.000
13,350.000
9.547.000
8,134.000
£
£
152.622.838 152.068.880
342.024.088 272.191.100
115.618.050 129.860.150
100.684.000 102.375.000
56.130.000
54.651.000
36.416.000
30.625.000
33.6110.000
25.900.000
22.438.000
19.259.000
13.553.000
13.081.000
9.573.000
9.593.000
8,145.000
8.158.000
Total week 1.274,924,380 1.154.856.187
Prey. week 1.265.399.792 1 160 626.312
982.593,680
981.342.962
890.883.976
890.480.018
England___
France a _ _
.
Germanyb_
Spain
Italy
Netberfds_
Nat. Beig'm
Switzerland
Sweden
Denmark
Norway
.f
160.701.080
648,890.250
35.577.050
90,355,000
63.343.000
85.254.000
75,147,000
88.805.000
11,440.000
7.399,000
8.013,000
821.752.130
830.006.621
a These are the gold holdings Of the Bank of France as reported In the new form
of statemen . b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year is £1,905,800.
Dictatorship in Germany and the Outlook
for Disarmament.
The general election in Germany on Sunday, preceded by several weeks of the most amazing political
campaign that the Reich has ever known, resulted,
as everybody expected it would result, in a decisive
1612
Financial Chronicle
victory for the Hitler forces. The returns, subject
to some slight correction for the popular vote, give
the National Socialists or Hitlerites 17,265,823
against 11,737,185 at the election on Nov. 6, and the
Nationalists or Hugenberg party 3,132,595 against
a previous 3,235,896. In the Reichstag, the National
Socialists won 288 seats and the Nationalists 52, a
total of 340, or 14 more than an absolute majority
of the new membership of 652. The changes in the
other parties, with the exception of the People's
party and the Communists, were curiously small.
A decline from 660,072 to 432,105 in the People's
party vote gives that party 7 instead of 11 seats
in the Reichstag, while the Communists, whose
popular vote fell from 5,980,240 in November to
4,845,379, have 81 seats in place of a former 100.
The Catholic Center, on the other hand, although
it lost its control of Bavaria, actually increased its
popular vote from 4,169,603 to 4,423,161, with a
consequent gain in Reichstag seats from 70 to 73;
the Bavarian People's party, with only a slight
drop in its popular vote from 1,156,841 to 1,072,893,
retained the 20 seats which it previously had; while
the Socialists, with a popular vote of 7,116,505
against a previous 7,251,410, secured 120 Feats in
place of a former 121. The total popular vote, approximately 39,204,123, was the largest ever polled,
contrasting with 35,266,885 in November.
There is no mistaking the significance of the result as far as the ordinary procedure of the Reichstag is concerned. With an absolute majority of
the seats, the National ,Socialists and Nationalists,
if they continue to work together as there seems
reason to expect that they will, can control legislation, and the once powerful Socialists and Catholic
Centre will have only the status of an Opposition.
The Government majority is not sufficient, on the
other hand, to effect changes in the Reich Constitution, a two-thirds majority being needed for that
purpose, and it is still possible that resort may be
had to presidential decrees if changes are to be
made. The sharp decline of 1,134,861 in the Communist vote is difficult to explain except on the assumption that large numbers of Communists either
refrained or were prevented from voting, since the
loss is not accounted for by either National Socialist
or Nationalist gains or the slight gain of the
Catholic Centre, neither of these parties being likely
to receive Communist support.
On the other hand, with only a little more than
half of the total popular vote given for the Government coalition, it is clear that the German people
as a whole have been very far from announcing
their acceptance of the Hitler regime. Speculation
as to what might have happened if other things had
not is rarely profitable, but there is nevertheless
much reason to think that if the Nazis had not resorted to terrorism, censorship of the press and
other excesses in addition to the spectacular publicity with which the campaign was wound up,
Chancellor Hitler might still have lacked the votes
necessary to enable him to go on in a parliamentary
way if he wished to do so. It was noticeable that,
throughout the four weeks or so of active campaigning, Hitler said nothing of importance about
the program which his Government intended to
pursue. Instead, the emphasis in his speeches- was
laid upon the wrongs which Germany had suffered,
the restrictions to which it had been subjected, and
the bars which had been placed in the way of its
March 11 1933
recovery. The progress which had been made under
Dr. Bruening and other Chancellors was forgotten
in the impassioned reminders of long-continued subjugation, suffering and restraint. To a people as
devoted to their country as are the Germans, and
with the memory of humiliating defeat still keen,
the appeal was effective, but even so it moved only
a small majority of the voters to cast their ballots
for the Hitler cause.
Psychologically, of course, Hitler's tactics were
well chosen. The German people, like peoples everywhere throughout the world, are not only distressed
but anxious. They look with apprehension at the
future, they feel the weight of the economic chaos
and political uncertainty which pervade Europe.
It is natural, under such circumstances, that great
masses of the voters, even without the aid of
terrorism, should turn away from the leaders who
represent an accustomed political and social order,
and give their support to a leader who appeals to
their emotions notwithstanding that his promises
are vague. Unfortunately, the victory does not give
much indication of the policy which the Hitler Government is likely to follow. The editorial declaration of the Berlin "Voelkische Beobachter," Chancellor Hitler's organ, on Monday, that "Hitler does
not mean to establish tyranny in Germany," that
"he will not permit himself to get out of touch with
the people," and that "he hopes that the people will
come to understand the necessity for his actions,
that they will spontaneously and with inward conviction go along with lus and with iron resolution
do their own fighting for their own freedom, casting off all illusions," may mean much or little as
far as program is concerned, and it will mean nothing at all that is helpful to Germany's good name
if the violence and lawlessness of Nazi groups,
which still continue in Prussia, in the Ruhr and in
other parts of the Reich, are not rigorously suppressed.
For the moment, it is foreign affairs and international relations, rather than domestic concerns, that
figure most prominently in the picture. The Hitler
victory has been received with extreme dissatisfaction and obvious alarm in France, where the conclusion is drawn that Fascist Germany and Fascist
Italy, if not already bound in some secret understanding, will now work still more closely together.
The moderation of the Italian press, which has been
much less enthusiastic about the German election
than it was over Hitler's elevation as Chancellor, is
viewed with suspicion as perhaps concealing some
underlying agreement. London dispatches represent British opinion, hitherto frankly favorable to
Germany, as greatly alienated by the election, and
particularly by the violence which has characterized
the Nazi proceedings, and the prediction is made
that Great Britain will now draw closer to France
in matters of general European policy. Austria,
meantime, has passed under a temporary dictatorship, directly as a result of the Hitler victory. On
Monday the Austrian Nazis at Vienna demanded
the immediate resignation of the Dollfuss Cabinet
and the formation of a Nationalist Government,
their manifesto adding a demand for the removal
of the frontier markers between Austria and Germany and the repudiation of such treaties as keep
the two countries apart. The reply on Tuesday was
the proclamation of a dictatorship by Chancellor
Dollfuss on the ground that the Parliament was
Volume 136
Financial Chronicle
"paralyzed and unable to function," the suspension
of many constitutional guarantees, and the prospect,
intensified by the mobilization of troops on Thursday, of a bitter struggle between the Government
and the Social Democrats, who have appealed to the
workers to prepare to defend the Constitution to
avoid being "tobogganed into Fascism and into complete outlawry along with our brothers in Germany."
Internationally, the most significant effect of
Hitler's success is the apparent likelihood of a
complete breakdown of the disarmament procee
dings
at Geneva. The German demand for arms equality,
it has been pointed out, has completely changed the
position of Germany. From the position of a debtor,
forced by circumstances to accept such measure of
relief from treaty restrictions as France and the
other Powers might choose to give, it has become a
creditor, demanding the execution in its favor of
the disarmament provisions of the Treaty of Versailles and the Covenant of the League, at the same
time that the.support which it has received from
Italy, the sympathy of Austria, and the fear of a
German-Austrian-Italian-Hungarian alliance have
made the German contentions a key element in the
disarmament undertaking.
The events of the past few days bode ill for the
success of the Geneva debates. On Saturday, March
4, the French delegate, Foreign Minister PaulBoncour, warmly championed the definition of an
aggressor framed by the Soviet Foreign Minister,
Maxim Litvinov, an endorsement which the Russian
Ambassador, Dovgalevsky, hailed with "keen satisfaction." On Monday the French Minister of
Colonies, Albert Sarraut, startled the conference by
expressing the hope that "certain countries" that
had no colonies would soon "be associated in the
work of colonization and civilization," although
he
later explained that he referred to Franco-Germa
n
collaboration in public works and not to a change
in the distribution of mandates. On Tuesday,
a
French proposal to take up the last part of the
French security proposal, providing for a Continental pact of mutual assistance, and for postponing
until the Roosevelt Administration was further
under way the co-operation of the United States
and Russia in a consultative pact, was approved in
principle by a vote of 14 to 5, but Germany, Austri
a,
Italy, Hungary and The Netherlands voted in the
negative and Russia abstained, while on the question
of appointing a committee to draft the pact Italy,
Germany and Hungary declined to serve. With
the conference threatened with disruption, Prime
Minister Ramsay MacDonald and his Foreign Secretary, Sir John Simon, hurriedly left London for
Paris on Thursday,intending to go on to Geneva on
Friday after a conference with Premier Daladier.
It was reported yesterday that the conference had
been a failure as far as inducing Mr. MacDonald to
support the French security program was concerned.
There will be genuine cause for apprehension if
Germany should take either the breakdown or an indefinite adjournment as an occasion for greatly increasing its armaments. In the present delicate
balance among the Powers, increased armaments in
one quarter are pretty certain to lead to similar increases elsewhere, and a danger of war could hardly
fail to revive the efforts of France, very possibly
with the backing of Great Britain, to keep the reltrictions of the peace treaties intact. In such
1613
efforts the recently reorganized Little Entente would
assuredly join, and an Italian-German-Hungarian
entente might then become a reality. To a degree
which has not been found since the World War, the
Hitler Government holds the key to European peace.
If it suppresses the violence of its enthusiastic followers, establishes order, devotes itself to the domestic problems of finance, trade, industry and social
well-being which press hard for attention, and does
its best to cultivate peaceable relations with its
neighbors and especially with those that distrust
it, it may be able to show that a dictatorship, however harshly imposed at the outset, can work under
constitutional forms for the benefit of the German
people and of Germany's place in the world. There
is no predicting what may happen in Europe if it
pursues an opposite course.
Patriotism Overrides Politics.
When American freemen went to the polls last
November to elect a new President, each voter being
swayed by politics, they little conceived that as the
leader of their choice assumed the high office about
four months later, politics, which has ever played
so important a part in the affairs of the Republic,
would be well-nigh sunk into oblivion.
To-day circumstances which never existed before,
except in much milder form, have welded conflicting
opinions into a solid mass of accord which backs
President Roosevelt as a leader who will guide citizens of the United States out of a dilemma that was
casting a heavy cloud of despair over the whole
country.
For the time being, politics have been sunk into
the mire. Patriotism fills men's souls to a greater
degree than when they are called to war in defense
of their country.
Calamity, which has been insidiously spreading
over the United States, now strikes closer to the
family circle and the hearth-fires than it does when
the nation is attacked by a foreign foe.
The troubles of to-day are more personal, hitting
the pocketbook upon which every family depends
for sustenance, depriving heads of families not only
of the means to pay interest, but making impossible
the satisfying of mortgages on homes that must in
consequence be ruthlessly sacrificed upon the sheriff's auction block. With equal force they strike
at the farmer who is unable to market his crops, and
the manufacturer who finds no buyer for the product
of his mills.
No section of the country and none of the people
from the humblest toiler to the richest Croesus has
escaped the withering force of the blight upon prosperity. The more one had to lose the greater has
been his loss, so that the poor and the wealthy have
suffered alike and in common they have been seeking a way back to solid ground.
Thus it is that a common cause has brought all
Americans together for the common weal and in a
republic there could be no better foundation upon
which to build anew. Americans are face to face
with the fact that "a man's a man for a' that," and
together they must all join with one accord to put
the country,squarely back upon its feet so that each
and every citizen may have an equal opportunity
to build anew.
When Congress, after careful deliberation, gives
life and force to the plans of the Administration,
Financial Chronicle
1614
March 11 1933
were in amount considerably less than one-third of
what they were three years before. The total of
exports last year was reduced to $1,611,630,000,
which was below any year back to 1904. In 1931
exports amounted to $2,424,289,000, the reduction
in a single year being $812,659,000, or 33.5%. Imports in 1932 were valued at $1,322,772,000 against
$2,090,635,000 in the preceding year, the decline in
1932 being $767,863,000, equivalent to 36.7%. The
excess of exports last year amounted to $288,858,000
compared With an excess of exports in the preceding
year of $333,654,000. It is necessary to go back to
1909 for an amount below that of 1932. For each
year in the intervening period the balance has been
on the export side. For more than 30 years exports
have exceeded imports. During the war period the
amount was very heavy, being for most years in
excess of two or three billion dollars. As late as
1928 the export trade balance was in excess of one
billion dollars.
Both exports and imports in 1932 showed a heavy
loss in each month compared with 1931. The record
for the first three months of 1932 was decidedly the
best for that year. In the succeeding three months
there was a considerable reduction, but for the third
Foreign Trade in 1932.
The downward trend in the value of the foreign quarter of the year the showing was the least satistrade of the United States has continued for so long factory. This was especially true as to imports.
a time, and in recent years has become so violent, There was some recovery in both exports and imports
that it is rather difficult to realize in what respect in October and November, but for December a furthe losses have been most severe. In practically ther decline was recorded.
THE DECLINES IN EXPORTS.
every department of the trade the declines have been
very heavy. This is especially true as to values,
Nearly every subdivision of the export trade
which in most instances have suffered even greater showed a decline last year. In most of the imthan the quantities. In a few lines the volume of portant classifications the value was far below that
trade has been quite well maintained. This was of recent preceding years. Quantities, too, were
in the face of lower values directly due to lower generally smaller, although there were some imprices.
portant and significant exceptions as to this. The
Exports and imports of merchandise for the calen- differences as to quantity and value in some indar year 1932 reached a total of only $2,934,402,000. stances were quite noteworthy.
These figures compared with $4,514,924,000 in the
In the following table the changes from year to
preceding year, the reduction in that time being no year in a number of leading staple articles of ex
less than $1,580,522,000, equivalent to a decline of port, such as machinery, ores, textiles, petroleum,
35.1%. It is necessary to go back to the year 1908 chemicals, cotton, breadstuffs and provisions, are
for as low an amount as that for 1932. For the two shown; also the relation that each of these articles
years prior to 1908, the amounts were slightly higher bears to the total movement from this country to
than for that year, but in 1906, the record was the foreign ports. The compilation covers four years:
highest up to that time. In the following table the
Ratio
Exports
Ratis
Ratio
Ratio
value of merchandise exports and of imports is given
1932.
to
to
1931.
1929.
(000 Omitted)
to
1930.
to
$
Total
$
Total
Total
$
8
Total
for many years:
President Roosevelt can sound the bell for the beginning of a new race in which every steed, unhandicapped, may have an equal chance of winning with
all of the contestants.
The present is no time to falter, no time to become
discouraged, but rather there is afforded an opportunity to gird on the armor and go forth to the
victories of peace which we are told are no less
renowned than war.
The President has recognized the need of strong
leadership and he realizes that it is his mission to
supply such leadership so far as may be within his
ability. But no leader may succeed unless he has
the good will and cordial support of his followers.
It is for this reason that the entire people should
uphold the hand of *Mr. Roosevelt, who has been
chosen as the most suitable citizen to lead his fellows to solid ground and inspire them with hope,
confidence and zeal. Aided by the radio, we have
all lent our ears; it is title now to lend our hearts
and hands to further a general recovery.
Surely now is the time for all good men to come
to the aid of the Republic.
U. S. MERCHANDISE EXPORTS AND IMPORTS (CALENDAR YEARS)
OCOCOCQQ0ccVECCODOCCOOCOcgRg88,
20
WWWWNWNO.NN
WW
t4...0,0M.4420.AWOQCW.400.1.W14....06
54nal,
::::::: :I
::::::::::::::::::::1:
Cal. Year.
Exports.
Imports.
Excess.
Total Trade.
$
1.360,685.933
1.434.753,083
1,451,318.740
1.626.990.793
1.798.243.434
1,923.426,205
1.752.835.447
1.728.198.645
1.866.258.906
2.092.526.746
2.399.217.993
2.484.018.292
2.113,624.050
3,554.670.847
5.482.641.101
8,233.512.597
6.149.087.546
7.920.425.990
8.228.018.307
4.445.031.536
3.831.777.469
4.167 493.080
4.590.983.845
4,9u9.874.511
4.808.660.235
4.865.375.325
5.128.356.434
5,240,9
4,000
3.843.161.000
2.424.289 000
1.611.630.000
i
969,316.870
996.494.327
1.335.909,190
1,179.144.559
1.320,501.572
1.423.169.820
1,116,374.087
1.475.520.724
1,582.904,151
1,632.359.160
1.818,073.055
1.792.596.480
1.789,276,001
1.778.596,695
2.391.635.335
2.952.467,955
3.031,212.710
3.904.364.932
5.278.481.490
2,509.147.570
3,112,746.833
3.792.085.963
3.609.962.579
4,226,589.203
4.430.888.368
4.184.742.418
4.091.444.394
4.399,361.00
0
3.060,908,000
2.090.635.000
1,322,772.000
2
Rip. 391,369.063
Exp. 489.258,758
Esp. 415.409,550
Exp. 447,846.245
Hip. 477.741,862
Rip. 500.258.385
Esp. 836,461.360
Exp. 252.677.921
Exp. 303.354,753
Rip. 560,167.586
Esp. 581.144.938
Esp. 691.421.812
Exp. 324,348,049
Rip 1.776.074.152
Rip 3,991,005,766
Rip 3.281,044.842
Ere 3.117.874.835
Exp.4.016,061.058
Ezo.2.949.534.817
kir/A.975,883.786
Rip. 719.030.636
Rep. 375.427.117
Exp. 981.021.268
Exp, 683.208.048
Exp. 377.771.889
Rip. 680.632.909
Exp.1.036.912.040
Rip. 841 .834.000
Hip. 782.273.000
Ent. 333.654.000
Rip. 288.858.000
$
2.330.002,903
2,480,247.410
2,487,227,930
2.806.135.345
3.118,745.006
3.346.596,025
2,869,209,534
3.203.719.369
3.429.163.055
3.624.885,906
4.217.291,048
4,276.614,772
3,902,900.051
5,333.267,542
7.874.276.436
9,185,980.552
9.180.300.255
1.824.790.922
3.506.497.779
6,994.179.106
6.944.534,302
7,959.559.043
8.200.946.424
9,136.430.774
9.239.548.601
9.050.117.741
9,219 800.828
9,640.358,000
6.904,089.000
4.514.924.000
2.934.402.000
Machinery
Iron and ores
Textiles•
Petroleum & oils
Chemicals
Total
Cotton
Breadstutts
Provisions
All other
Total all
222.295 13.8
84.830 6.3
63.637 3.9
208,377 12.9
70.404 4.4
484.539 20.0
180.907 7.5
98.034 4.0
270.499 11.2
100.133 4.1
830.076 22.0 1,200.761 22.9
35(1.752 9.3 535.889 10.2
143.109 3.7 208.445 3.9
494,339 12.4 581.191 10.7
127.855 3.3 152.109 2.9
649.543 40.3 1.134,102 46.8 1.952.131 60.72,658,395 60.6
345.165 21.4 325.593 13.3 496.798 12.9 770.830 14.7
66.927 4.2 106.046 4.4 191.343 5.0 388.364 5.5
69,555 4.3 117,555 4.8 186,854 5.0 244.247 4.7
480,440 29.8 740,993 30.7 1.016,055 26.4 1.281.179 24.5
1.611.620 100.0 2.424.289 100.0 3 R43 IRI inn 0 5.240.995 100.0
•Omitting raw cotton.
Cotton was again restored somewhat nearer to
its place in foreign shipments. Exports of cotton
last year were larger, both in value and in quantity,
than in a number of preceding years. Shipments
abroad of raw cotton amounted to 9,059,735 bales
in 1932, and compared with 6,953,003 bales in 1931,
the increase for the later period being 2,106,732
bales, or 33%. The value of cotton exports for the
year, $345,165,000, compared with $325,593,000 in
1931,an increase of only $19,572,000, or 6.1%. Much
the same condition prevailed in 1930 and 1929.
decline in the past three years has been Cotton exports in 1929 were 7,581,000 bales, while
The
especially large. Both exports and imports in 1932 in 1930 they were 6,591,000 bales. The value in each
Financial Chronicle
Volume 136
of these two years was considerably below that of
the preceding year. Last year, as noted above, there
.
was a slight increase in the value of the foreign shipments of cotton, the value in that year representing
21.4% of the total of all merchandise exports for
the year. It has been some time since the ratio of
cotton exports to all exports was in excess of onefifth. In 1931 it was only 13.3% of the value of all
exports, and in 1930 it was 12.9%, and only slightly
higher in 1929 and in some of the years preceding
that time.
The change in cotton values in recent years has
been due to the constantly lower price of the staple.
The average export price of cotton in 1932 was below
71 3c. per pound. In 1931 it was nearly 9 c. a
/
/
1
2
pound for the entire year, and in 1930 nearly 14%c.
per pound. These are violent changes to take place
for so important a commodity as cotton in the course
of only three years.
Of the leading classifications in the export trade
for 1932, cotton is the only one to show an increase.
The others are all for a smaller value than in the
preceding year, or for a number of years back.
Wheat, which was formerly a very important item
in our foreign trade, declined last year to very
small figures. This cereal is included with bread.
stuffs, and value for that division last year was
$66,927,000 against $106,046,000 in the preceding
year, a loss of $39,119,000, or 36.9%. Of the total
value of exports of breadstuffs in 1932, wheat contributed $32,684,300, slightly less than one-half the
total. In 1931 exports of wheat represented in
amount $49,731,200, and in 1930 the value was $88,093,000. The reduction in two years has been
equivalent to 63%. In quantity, too, the loss has
been very high, wheat exports last year having been
54,879,000 bushels against 80,311,000 bushels in 1931
and 87,773,600 bushels in 1930.
In machinery lines the loss in exports has been
very severely felt by manufacturers. Last year the
total value of all machinery exports was reduced
to $222,295,000 against $484,539,000 in 1931, the
reduction being equivalent to 54%. It is only four
years ago that the value of all machinery exports
was in excess of $1,200,760,000. The decline in the
value of motor cars and trucks has been very heavy.
Last year the amount was only $90,100,000 against
$166,254,000'in 1931. In electrical lines, too, the loss
was large-in 1932 the value was $43,382,000 compared with $85,080,000 in 1931. In agricultural
machinery, in which we long held a predominant
position, the value in 1932 was reduced to $10,548,000 against $57,403,000 in the preceding year.
IMPORT TRADE ALSO LOWER.
Included in merchandise imports are four important commodities which contribute nearly onethird the value of all imports. In some years gone
by the ratio has been even higher than one-third.
These are coffee, sugar, silk and rubber. Values
were lower in 1932 for all of these four products
than in preceding years. Quantities, too, show a
decline. In 1932 the proportion of the value of these
four commodities was 28.7% of the total of all imports in that year against 26.5% of the value of
these products in 1931, compared to total imports
in that year. The total value of the four products
mentioned in 1932 was $379,934,000 against $552,686,000 in 1931, a reduction of 31.3% for the year
just closed. The heaviest losses were in silk and
1615
rubber. In quantity the decline averaged 9.2% as
compared with a loss of 31.3% in value.
Food products other than coffee and sugar show
a heavy decline in the value of imports last year;
likewise in textiles other than silk, textiles including different grades of wool. Minerals and ores
showed quite a decline in the value of imports in
1932 as compared with the preceding year; also nonmetallic minerals, including petroleum and petroleum products. The division including wood and
paper also shows smaller imports in 1932 than in
1931, although for newsprint and paper stock the
reduction was less severe.
In the following table the value of imports of a
number of the leading lines in our foreign trade is
shown for a period of years. Altogether these separate classes constitute more than 80% of all our
merchandise imports. In addition to the value
shown, the ratio that such amount bears to the total
of all imports is given:
imports.
(000 Omitted)
1932.
$
Ratio
to
Total
1931.
$
Ratio
to
Total
'Ratio
1930.
to
$
Total
174.904 8.4 (209,472 6.8
112.689 5.4 129.628 4.2
180.698 8.6 354.600 11.6
191,290 9.2 262,913 8.1
220,446 10.5 337,798 11.0
166,798 8.0 254.190 8.0
II
1929.
$
Ratio
to
Total
Coffee
Sugar
Other,foods *
Silk
Other textiles_ _
Animal products
-a
136.812 10.3
96.701 7.3
173.376 13.1
113.883 8.6
130,152 9.8
80.084 6.1
Total
Rubber
Wood and paper__
Minemts and ores_
do non-met,..,.
All other
731.008 55.2 1,046,825 50.1 1,548.601 50.6 2,351,824 55.8
32.538 2.5
73.803 3.5 140.641 4.6 240.967 5.5
168,115 12.7 237.355 11.4 819,455 10.4 377.328 8.6
74,155 5.6 146,081 7.0 266.383 8.7 395.954 9.0
96.143 7.3 154,230 6.4 245.831 8.3 306.050 7.0
220,813 16.7 332,341 21.6 539,997 17.6 717.248 14.3
Total all
302.397 8.9
209.277 4.8
450.508 12.4
427.126 9.7
574,783 13.1
396.733 8.7
1.322 772 inn n 2 non fins loos)3.060.908 100.0 4.399.361 100.0
13*An1ma1 products and vegetable. :Largely hides and furs.
GOLD AND SILVER SHIPMENTS.
The gold movement in 1932 was again heavily on
the export side, as it was in 1928 and 1925, the
only two years from 1920 to 1931 in which gold exports exceeded imports. The total shipments of gold
out of the country last year reached the exceptional
total of $809,528,000, while gold imports were $363,315,000, the excess of exports being $446,213,000.
In 1931 gold exports were $466,749,000 and imports
$612,119,000, the latter exceeding exports by $145,.
325;000. The silver movement, both in exports and
imports, was the smallest last year in a great many
years, imports exceeding exports by $5,800,000
against a similar movement of only $2,179,000 in
excess silver imports for'the preceding year. For
most years in the past exports have exceeded imports
of silver for each year by a considerably higher
amount. In the table we now give, the gold and
silver movement is shown for a long series of years,
with the net amount for each:
SILVER.
GOLD
Year
end
Dee.
61.
Export's.
Excess of
Imports. Export.(+)or
‘
Imports(-).
Exports.
r Excess of
Imports. EzPorts(+)or
Impor(4(-).
S
5
5
$
S
1902. 36.030.591 44.193.317 -8.162.726 49.272.954 26.402.935 +22.870.019
1903 _ 44.346.834 65.267.69 -20.920,862 40,610.342 23.674.508 + 16.635.834
1904 _ 121.211,827 84,803.234 +36.4 8,5
50.135.245 26.087.042 +24.048.203
1905. 46.794.467 50.293.406 -3.498.938 57.5)3.102+21.573.967
35.939.135
1906_ 46.709.158155.579.380-108.870,222 60,597.091 44.227.841 +16.729.250
1907_ 55.215.681 143,398.072 -88.12 .391 61,625,866 45.912.350 +15.713.508
1908. 81.215.456 50.276.293 +30,939.163 51.837.671 42.224.130 +9.613.5.41
1909 _ 132.880.8211 44.086.966 +88.793.855 57,592,309 46.187.702 +11.404.607
1910 58,774.822 59,222.518
.
-447.696 57.360.973 45.878.168 +11.482.805
1911 - 37483.074' 57.445,184 -20.262.110 65.664.646 43.746.571 +21.918.075
1912 47.424.842 66.548.772 -19.123.930 71.961.755 48.401.086 +23.560.669
.
1913 91.698.610; 63.704.832 +28.093.778 62.776.631 35.867.819 +26,908.812
.
1914 .222.616.156 57.387.741 +168.228.415 51,603.060 25.959.187 +25.643.873
1915 _ 31,425.918451.954.590-420.528.672 53.598.884 34.483.954
19.114.930
1916.
155.792.927 685,990.234!-530,197.307 70.595.037 32.263.28939.331..
1917 371.883.884 852.454.374-180.570.490 84.130.87653.340.477j +30.790.399
.
1918 _ 41.069.819 62.042.748i -20.972.930282.846.464 71.375.699 +181.470.765
1919
.
89.410.018 +149.611.033
. .
1920.. 322.091.208417.068.273 -94.977.965 113.616.224 88.060.0411 +25.556.188
1921. 23 891.3776 1.248,297,_667.356,92 ! 51,575.399 63.242.6711 -11.667.272
0
.
9
1922 36.874.894 275.169.785-238,294.891, 61.807.286 76.806.653 -7.999.367
.
1923. 28.643.417 322,715.812-294.072,395; 72.468,789 74.453.530' -1.984.741
1924 _ 61.648.313 319.720,918-258,072.6051109.891.033 73.944.902 +38.946.131
1925 262.639.790 128.273.172 +134.366.6181 99.127,585 64.595.418 +34.532.167
1926 .115.707.815 213.504.021 -97.796.205, 92.257.564 69.595.936 +22.661.528
1927 _ 201.455.100 207,535,195 -6.080.0951 75,624.780 55.073.917, +20.550.863
1028.580.760.000,I68,857.000.+ 391,873.000, 87.382.000, 68.117.000 +19.265.000
1929 _ 116.583,000 291,649.000-175.066.000, 83.407.000' 63.940,000 +19.467.000
1930. 115,967 0001396.054 000-280.087,000 54,157.000i 42.761.000 4-11.396.000
1931.
466.794.000612.119.000-145.325.000, 26.485.000 28.664,000 -2.179.000
1932.
809,528.000363,315.000 +446.213,0001 13.850.000 19.650.000 -5.800.000
1616
Financial Chronicle
The net result of all foreign shipments for 1932,
including merchandise exports and imports and gold
and silver each way, has been a large net gain to the
United States, the largest increase since 1928. In
the following table we indicate the balance under
each of the different heads, as well as the final balance for each of the last five years:
TRADE BALANCES FOR CALENDAR YEARS FOR MERCHANDISE,
GOLD AND SILVER COMBINED.
61rCzcess of—
1
1932.
1931.
1930.
1929.
1928.
$
Mdse. exp. 446,213,000
Silver exp 5,800.000
a
333.654.000
2,179,000
a
782.273,000
D11.396,000
Total ___ 440,413.000
Gold imp__ 5446,213,000
331,475,000
145,325,000
793.669.000 861.101,000 1.056,177,040
280.087,000 .175.066.000 8391,873,000
VNet exp.
186.150.000
513.582.000
886.626.000
S Net exports.
$
a
841,634.000 1,036.912,040
519,467,000 519,265,000
RIIRAIRA (Inn 1 445 nso nan
In Defense of the Ottawa Agreements.
We are glad to make room for the following from
a defender of the Ottawa Agreements, as a result
of which a discriminatory tax of roughly 6 cents
a bushel is imposed against wheat grown in the
United States and in favor of wheat grown in
Canada when destined for the British market—that
is Canadian wheat is allowed to enter the United
Kingdom free of duty, while wheat coming from
America can not enter Great Britain except on the
payment of a duty of 3 pence per bushel or approximately 6 cents in American money. We deem
it proper to say, however, that the allusion to the
duty of 42 cents a bushel imposed by the United
States on foreign wheat, to which our correspondent
refers, is scarcely in point. Both the United States
and Canada are exporting countries, as far as wheat
is concerned, and not importing countries, and each
imposes a tax or duty on wheat coining from the
other.
The 42 cents a bushel tax on foreign wheat imposed by the United States and which undoubtedly
is aimed at Canada may be fantastic as our correspondent terms it, but how much more fantastic
is it than the duty levied on foreign wheat by the
Dominion and which is meant to exclude wheat coming from the United States. This Canadian duty
is 30 cents a bushel plus a sales tax of 6% and an
excise tax of 3%, or 9% together, both applied to
the value of the wheat as increased by the duty of
30 cents a bushel. With the market price of wheat
at 50 cents •a bushel, the duty would run up to
over 37 cents a bushel. The United States is not
complaining against this Canadian tax, against
being denied access to the Canadian market. It
does protest against not being allowed to compete
on even terms in the British market—against being
in fact denied (as things are now working out)
'access to the British market at all.
Junior Carlton Club, Pall Mall. W.
London. 23 February 1933.
To the Editor,
Sir:
I have noticed the continued reference in your columns
to "a discriminatory tax of 6c, per bushel" which you
maintain Britain has imposed on the importation of wheat
grown in the United States.
I think the statement as it is made by you is misleading,
and tends to give the impression to the American reader
that his country has been singled out by Britain for the
imposition of this tax. In all justice, therefore, it is only
fair to point out that the agreements made at Ottawa between different parts of the British Empire, did not discriminate against any one country in particular. As regards wheat, a preference of 3d. per bushel (which, incidentally, at the present rate of exchange works out at
March 11 1933
about 414 cents and not 6 cents as stated by you) was
granted to wheat exporters of the Empire to the United
Kingdom, but this preferential duty is payable by any
foreign country, whether it be the U. S. A., the Argentine
or anywhere else. If it is considered that by granting a
preference of 414 cents per bushel to members of the
Britigh Empire, Great Britain has differentiated against
the U. S. A., surely then the fantastic duty of approximately
42 cents per bushel which the U. S. A. levies on foreign
wheat imports must be considered as a far graver discrimination of the U. S. A. against the British Empire.
I also notice in your issue of 11th February a statement
that the rise of the pound from $3.40 to $3.44-1/10 has had
the effect of increasing its purchasing power in terms of
the Canadian dollar, thereby favouring still more the purchasing of Canadian as against American wheat. I would
point out that this rise in the value of the pound increased,
of course, its purchasing power in terms of U. S. dollars
in exactly the same manner, thereby cheapening to the
English importer the cost of wheat from the U. S. A.
I quite appreciate the unfavorable effects the Ottawa
agreements must have on some exporters from the U. S. A.
and other foreign countries, but it must not be forgotten
that this departure from a traditional open-door trade
policy and the endeavour to lay at Ottawa the foundations
of a free trade Commonwealth comparable to your own
Union, has been forced upon Great Britain by the fiscal
policy of foreign countries against her. Great Britain's
plea at Geneva and elsewhere for the lowering of custom
barriers throughout the world has been, unfortunately, a
voice in the wilderness and she has at last been obliged to
take measures for her own self protection.
I am, Sir,
Your obedient servant,
N. ERIC DISNEY.
Railway Operating Income in January at Rate
of Less Than One Per Cent per Year.
The net railway operating income of the Class I railroads
in January amounted to $13,265,721, which for that month
was at the annual rate of return of 0.92% on their property
investment, according to reports just filed by the carriers
with the Bureau of Railway Economics. In January 1932
their net railway operating income amounted to $11,182,051,
or 0.78% on their property investment. Property investment is the value of road and equipment as shown
by the books of the railways, including materials, supplies
and cash. The net railway operating income is what is
left after the payment of operating expenses, taxes and
equipment rentals but before interest and other fixed
charges are paid. This compilation as to earnings in
January is based on reports from 150 Class I railroads
representing a total mileage of 241,399 miles. Details
follow:
Gross operating revenues for the month of January amounted to $226.555,138, compared with $272,115,638 in January 1932 or a reduction
of 16.7%. Operating expenses in January this year totaled $181.679,761
compared with $227,032,393 in the same month last year, or a reduction
of 20%.
Class I railroads in January paid $22,059,490 in taxes, a reduction
of $1.896,242 or 7.9% below the same month last year.
Seventy-three Class I railroads operated at a deficit in January, of
which 21 were in the Eastern, 14 in the Southern, and 38 in the Western
district.
Eastern District.
The net railway operating income of the Class I railroads in the Eastern
District in January was $13,428,991, which was at the annual rate of
return of 1.96% on their property investment. For the same month
in 1932 their net railway operating income was $11,694,482 or 1.71%
on their property investment. Gross operating revenues of the Class I
railroads in the Eastern District in January totaled $118,845,730. a decrease
of 16% under the corresponding period the year before, while operating
expenses totaled $89,978,431, a decrease of 20.8% under the same period
in 1932.
Southern District.
Class I railroads in the Southern District in January had a net railway
operating income of 33,116.551. which was at the annual rate of return
of 1.24% on their property investment. For the same month in 1932.
their net railway operating income amounted to 3718,755, which was at
the annual rate of return of 0.29%. Gross operating revenues of the
Class I railroads in the Southern District in January totaled 831,118,924,
a decrease of 11.1% under the same month in 1932, while operating expenses totaled 824,436,832, which was a decrease of 19.7% under the
same month last year.
Western District.
Class I railroads in the Western District in January had a net operating
deficit amounting to $3,279,821. In January 1932 their net operating
deficit was $1,231.186. Gross operating revenues of the Class I railroads
in the Western District in January totaled 376.590,484, a decrease of
10.0% under January 1932, while operating expenses totaled $67,264,498,
a decrease of 19% compared with the same month last year.
Financial Chronicle
Volume 136
CLASS I RAILROADS—UNITED STATES.
Month of January.
1933.
Total operating revenues
Total operating expenses
Taxes
Net railway operating income
Operating ratio
Rate of return on property investment
1932.
%
$226,555,138 $272,115,638 —16.7
181,679,761 227,032,393 —20.0
22.059.490 23,955,732 —7.9
13,265,721 11,182,051 +18.6
80.19%
83.43%
(1.02 et,
S 7Ft et,
James A. Farrell Issues Call For National Foreign
Trade Convention in Pittsburgh April 26-28—Worst
of Depression in International Trade Viewed as
Having Spent Its Force.
A revival of our international commerce is one of the basic
conditions for our recovery, says James A. Farrell, Chairman
of the National Foreign Trade Council, in issuing the call
of the Twentieth National Foreign Trade Convention to
be held in Pittsburgh on April 26, 27 and 28 next.
According to Mr. Farrell, American foreign traders have
learned this lesson in these years of trial and adversity and
they realize that the reconstruction process may well coincide with the success Americans can obtain in overcoming
our own difficulties. Although American export trade has
decreased between 1929 and 1932 by 69% in dollar values
and by approximately 42% in volume, compared with the
average recession of world trade by 60% in dollar values and
37% in volume, the Council affirms that the rate of decrease
in our export trade is now at almost exactly the world average,
about 20% per year in volume, and has been steadily diminishing during the past six months.
This tangible evidence that the worst of the depression in
International trade has spent its force is reflected, says the
Council,.in the decision of the foreign traders to conduct at
Pittsburgh a searching examination of our present foreign
trade policy in the light of present conditions.
Among the subjects it has been decided to include on the
program are "The Prospects for the International Economic
and Monetary Conference," "The Effect of Depreciated
Currencies on our Export and Import Trade," "International
Barter," and "Government Insurance for Export Trade," all
of which topics foreshadow new relationships in American
foreign trade. A survey will also be presented on "Treaty
Negotiations in World Trade," in an attempt to arrive at
the elements, which shall constitute the interestof the United
States as a whole in opening reciprocal commercial treaties,
as well as on "The Need of a Council of Foreign Bondholders."
The announcement regarding the program issued Feb. 20,
also says:
An entire general session will be devoted to credit policy in export trade
of which the principle feature will be a report of the Council's Committee
1617
on Exchange Restrictions by its Chairman, Fred I. Kent. Representatives
of foreign trade associations are collaborating in the work of this Committee
in an endeavor to relieve the conditions of American trade with the 34
countries which have imposed exchange restrictions, as well as the present
Departments of State and Commerce and important representatives of
the incoming administration. The subject of Mr. Kent's address will be
the "Origin and Background of the Present Problem," and it will be a
survey of the factors which underlie not only exchange restrictions but a
wide variety of barriers to modern world trade.
Another important phase of the credit situation will be presented by
H. H. Heiman, General Secretary of the National Association of Credit
Men, who will discuss "Current Credit Problems" in the light of the Nationwide experience of American credit executives.
Other important topics to be discussed on the program include "Our
Relations with Latin America," "Trade with the British Empire" (including a discussion of the results of the Ottawa Conference),"Ocean Shipping Problems" with respect to competition by the Government with privately owned ships, and "The Pacific Area."
"Tne World Trade Outlook" by James A. Farrell, Chairman of the
National Foreign Trade Council, will be, as in recent years, the concluding
address, summing up the issues which now concern American foreign trade.
At the World Trade Dinner on April 27, plans have been made for a
world-wide communications demonstration, including greetings from
Presidents and prominent officials in Latin-American countries and other
sections of the world, with an important address by a speaker of worldwide significance.
•
Besides the three general sessions of the convention, there will be eight
sessions by special groups, including sessions on Latin America, in cooperation with the American Manufacturers Export Association, on Current
Credit and Collection Practice, in co-operation with the National Association of Credit Men,on Imports,in co-operation with the National Council
of American Importers and Traders, Inc., on Co-ordinating Foreign Trade
Activities, in co-operation with the Foreign Traders Association of Philadelphia and other groups,on Foreign Trade Banking. Export Merchandising
and on Inland Problems, in co-operation with a special committee representing the tri-State district of Ohio, western Pennsylvania and West
Virginia.
Mr. Farrell's call to the Convention follows:
American foreign traders have found in these years of trial and adversity
that the level of our own prosperity bears a definite relation to the level
reached in other countries. The revival of our international commerce,
therefore, is one of toe foundations on which our recovery must be built.
The rate of decline both in our exports and our imports has steadily diminished during the latter half of 1932. This is a tangible sign, indicating
that the world-wide depression has spent its force, and that the reconstruotion process may well coincide with the success Americans can obtain in
overcoming our own difficulties.
It is a time that calls for careful consideration and for a thorough examination, in response to present conditions, of the facts that underlie our own
foreign trade policy. The spirit and habit of co-operating that so signally
marks American foreign trade practice is vitally needed in our counsels
to-day.
In order to give full opportunity to American producers and traders for
a thorough and comprehensive analysis of these grave issues that confront
our over seas commerce, the National Foreign Trade Council will hold
the Twentieth National Foreign Trade Convention at the Hotel William
Penn in Pittsburgh on April 26, 27 and 28 next.
All of those who are interested in the development of foreign trade as
a vital factor of National stability, whether in agriculture, commerce,
education, industry, finance or transportation, all Chambers of Commerce,
Boards of Trade, National and State associations and other industrial and
commercial organizations, as well as firms and individuals actually engaged
in foreign business are invited to participate.
Your co-operation toward making the Convention a success and giving it
the representation of every section of the country and every factor of
International commerce, and thus making its service Nation-wide, is
earnestly requested.
The New Capital Flotations in the United States During the Month
February and Since the First of January.
New financing in this country is so small now that it hardly
seems worth while to give much attention to it. Our compilation this time covers the month of February and the
diminutive character of the totals illustrates anew the unfavorable conditions under which the floating of new issues
of securities is being conducted—all the more so in February
because of the closing up in that month of all the banks in
Michigan besides many in other States, while at the same
time emphasizing again the point we have been making
month after month recently, that in these times the bringing
out of new issues of securities in the ordinary way must be
studied in conjunction with the financing done by the
United States Government, this latter having become of
overshadowing prominence, in no small part because it is
in no inconsiderable degree superseding ordinary financing.
Much corporate and municipal financing is now done through
the Reconstruction Finance Corporation, which in turn
disposes of its obligations to the United States Government.
In addition, the United States is all the time being obliged
to do considerable borrowing on its own account, because
of the growing budget deficit and also to meet constantly
maturing short-term obligations. In brief, much of the
financing formerly done in the ordinary way through corporate undertakings and by States and municipalities is
now being done by the United States through the Reconstruction Finance Corporation and other Government
agencies.
During February, as it happens, all the new obligations
brought out by the United States Treasury consisted of
offerings of Tleasury bills, sold on a discount basis, all to
take up maturing issues and involving therefore no new
capital and no addition to the public debt. There were four
of these and the distinctive feature of these was that they
involved a rising cost to the Government, though still at
abnormally low figures.
New Treasury Offerings During the Month of February 1933.
On Feb. 1, Secretary of the Treasury Mills offered in the
amount of $75,000,000, or thereabouts, a new issue of 91day Treasury bills dated Feb. 8 1933 and due May 10 1933.
The total amount applied for was $234,790,000. 'I he amount
of bids accepted was $75,228,000. The average price was
99.955, the average rate on a bank discount basis being
0.18%. Issued to refund maturing bills.
Mr. Mills on Feb.8,announced a second offering of 91-day
Treasury bills dated Feb. 15 1933, and to mature May 17
1933. Applications for this issub amounted to $281,122,000,
of which $75,202,000 was accepted. The bills were issued
at an average price of 99.942, the average rate on a discount
basis being 0.23%. Issued to refund maturing bills.
The third Treasury bill offering of the month was announced by Secretary of the Treasury Mills on Feb. 16.
Tenders of $123,929,000 were received to this offering of
-day Treasury bills dated
$60,000,000, or thereabouts, of 90
Feb. 23 1933 and maturing May 24 1933. The total amount
of bids accepted was $60,074,000. The average price was
99.864, the average rate on a bank discount basis being
0.55%. Issued to refund maturing bills.
Financial Chronicle
1618
On Feb. 22, Mr. Mills gave notice of a fourth Treasury
bill offering of the month. Applications of $254,283,000
were received to this offering of $100,000,000 or thereabouts,
of 91-day Treasury bills dated March 11933, and to mature
May 311933. The amount of bids accepted was $100,613,000. The Iverage price was 99.750, the average rate on a
bank discount basis being 0.99%. Ii.sued to refund maturing bills.
In the following we show in tabular form the Treasury
financing done during the first two months of this year.
The eight offerings disposed of by the Government aggregated $818,775,600, of which $685,631,000 went to take up
existing issues and $133,144,600 constituted new indebtedness. For February by itself the disposals aggregated
$311,117,000, all consisting of Treasury bills and all going to
take up maturing issues.
UNITED STATES TREASURY FINANCING DURING THE FIRST TWO
MONTHS OF 1933.
Date
Offered. Dated.
Due.
Amount
Applied for.
Amount
Accepted.
Yield.
Prtce.
Jan. 4 Jan. 11 91 days
$229,845,000 $75,090.000 Average 99.948
Jan. 11 Jan. 18 91 days
75,032.000 Average 99.941
339,567.000
Jan. 17 Jan. 25 91 days
80,020,000 Average 99.954
427,740.000
Jan. 22 Feb. 1 5 years
7,802,843.600 277.516.609
100
Feb. I Feb. 8 91 days
75.228,000 Average 99.955
234.790.000
Feb. 8 Feb. 15 91 days
75,202.000 Average 99.942
281,122,000
Feb. 16 Feb. 23 90 days
60.074,000 Average 99.864
123,929,000
Feb. 22 Mar. 1 91 dal.
254.233.000 100.613.000 Averace 99.750
•Average rate on a bank discount basis.
USE OF FUNDS.
Date
Offered.
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.
4
11
17
22
1
8
16
22
Type of
Security.
Treasury bills
Treasury bills
Treasury bills
24% Treas. notes
Treasury bills
Treasury bills
Treasury bills
Treasury bills
Total Amount.
Accepted.
875.090.000
75,032.000
80.020,000
277,516,600
75,228.000
75,202,000
60.074.000
100,613.000
Refunding.
*0.20%
*0.24%
*0.18%
2.625%
*0.18%
*0.23%
*0.55%
.0.99%.
New
Indebtedness.
$75,090.000
75.032.000
80.020.000
144.372.000 8133.144,600
75.228.000
75.202.000
60.074.000
100,613 000
Taking up now our tables of ordinary financing for the
month of February we find that the amount of the new issues
brought out during the month aggregated no more than
$56,512,818, and that $36,876,600 of this represented refunding or the taking up of old issues outstanding, leaving
the strictly new capital provided as no more than $19,636,218.
The total of all the issues brought out at $56,512,818 compares with $109,962,630, the amount of the new financing
done in January; with $157,920,365 in December; with
$76,400,465 in November; with $124,061,660 in October;
with $138,606,966 in September, and with $169,482,692
last August. For the benefit of the reader we will say that
our compilations, as always, include the stock, bond and
note issues by corporations, by holding, investment and
trading companies, and by States and municipalities,foreign
and domestic, and also farm loan emissions.
As mentioned in previous articles, our compilations of new
financing do not take account of the various loans made by
the Reconstruction Finance Corporation, as the funds used
by the latter are all provided by the Federal Government,the
borrowings of which are recorded in the above.
Continuing further with our analysis of the corporate
offerings made during February, we observe that there were
but four new issues totaling only $37,555,000. This total
consisted of $36,241,000 for railroads, $900,000 for industrial
and miscellaneous and
14,000 for public utilities. Total
corporate issues, as just mentioned, were $37,555,000 of
which $32,939,000 comprised long-term offerings and
$4,616,000 represented short-term financing. No new stock
issues were brought out during the month. Substantially
all of the February corporate total was for refunding purposes,
the figure for the month showing $36,241,000 out of $37,555,000 or more than 96%. The month's refunding operations
comprised $31,625,000 Baltimore & Ohio RR. refunding and
general mortgage 5s F 1996 and $4,616,000 New York &
Erie RR. third mortgage extended 4
March 1 1938, both
representing extensions of maturing issues. In January the
refunding portion was $42,360,000, or over 65% of the
month's total. In February 1932 the amount for refunding
was $5,688,000, or about 12% of the total. The $36,241,000
raised for refunding in February (1933) consisted of $31,625,000 new long-term to refund maturing long-term and
$4,616,000 new short-term to refund maturing long-term
debt.
The month's financing was featured by the announcement
by the Baltimore & Ohio RR. that it had declared the plan
operative for meeting the maturity of its $63,250,000 convertible 4s due March 1. Holders of the maturing bonds
were called upon to accept 50% in cash and 50% in a like
principal amount of refunding and general mortgage 5%
March 11 1933
bonds, series F, due March 11996. The plan involves the
issuance of $31,625,000 principal amount of the latter issue.
The New York & Erie RR. also arranged during February
to extend the maturity of $4,616,000 third mortgage extended 4s from March 1 1933 to March 1 1938, on a
yield basis of 5.75%. The only other corporate issues were a
14,000 and a
public utility offering in the amount of
church obligation of $900,000.
One offering announced during February did not represent new financing by the company itself. This was
the annual offering of United States Steel Corp. common
stock to employees, a total of 200,000 shares at the price of
$27 per share and involving $5,400,000. Issues of this
nature, as pointed out by us in previous months, are not
included in our totals of new financing. It is our practice,
however, to show such issues in tabular form following the
details of actual new capital flotations during the month.
Included in the month's financing was an issue of $1,400,000 Federal Intermediate Credit banks 23/2% collateral
trust debentures, dated Feb. 15 1933 and due in nine months,
offered at price on application.
No foreign issues of any description were marketed here
during February. The Chase National Bank's short-term
credit of $20,000,000 to the Cuban Government was further
extended from Feb. 15 to March 4.
None of the February corporate offerings contained convertible features, nor carried rights to acquire stock on a
basis of one kind or another.
There was one new fixed investment trust offering during
the month, namely
American Bankstocks Corp. shares. Offered by Rackliff, Whittaker & Co.,
N. Y., at market.
The following is a complete summary of the new financing
—corporate, State and city, foreign government, as well as
farm loan issues—for February and the two months ending
with February:
SUMMARY OF CORPORATE, FOREIGN GOVERNMENT. FARM LOAN
AND MUNICIPAL FINANCING.
1933.
MONTH OF FEBRUARY—
Corporate—
Domestic—
Long term bonds and notes
.,
Short term
Preferred stocks
Common stocks
Canadian—
Long term bonds and notes
Short term
Preferred stocks
Common stocks
Other foreign—
Long term bonds and notes
Short term
Preferred stocks
Common stocks
New Capital.
Refunding.
Total.
$
$
$
Grant total
2 MONTHS ENDED FEB. 28—
Corporate—
Domestic—
Long term bonds and notes
Short term
Preferred stocks
Common stocks
Canadian—
Long term bonds and notes
Short term
Preferred stocks
Common stocks
Other foreign—
Long term bonds and notes
Short term
Preferred stocks
Common stocks
Total corporate
Canadian Government
Other foreign Government
Farm Loan issues
Municipal. States, Cities. do
United States Possessions
31,625,000
4,616,000
32,939,000
4,616.000
1,314.000
36.241.000
37.555,060
1,400,000
*16,922,218
*635.600
1.400,000
*17,557.818
19,636,218
36,876,600
56,512,818
19,721,000
500,000
2,500,000
750,000
63.143.000
15,458,000
82,864,000
15.958.000
2,500.000
750,000
23,471,000
78,601.000
102,072.000
10,900,000
050,045,998
a3,619,950
10.900.000
a53,665.948
OA A10 nno
Total corporate
Canadian Government
Other foreign Government
Farm Loan Issues
Municipal, States, Cities, &c
United States Possessions
1.314,000
n.. nnn ....n
van aq,0111
suo,uve.u=..
,
* Figures do not Include $71,402.351 Reconstruction Finance Corporation
advances to municipalities, either actually made or promised during February.
a Figures do not include a total of 8124,676.167 Reconstruction IinanCe Corporation advances to municipalities, either actually Made or promised during January
and February 1933.
In the elaborate and comprehensive tables on the succeeding page we compare the foregoing figures for 1933 with the
corresponding figures for the four years preceding, thus
affording a five-year comparison. We also furnish a detailed
analysis for the five years of the corporate offerings, showing
separately the amounts for all the different classes of corporations.
Following the full-page tables we give complete details
of the new capital flotations during February, including
every issue of any kind brought out in that month.
SUMMARY OF CORPORATE, FOREIGN GOVERNMENT, FARM LOAN AND MUNICIPAL FINANCING FOR THE MONTH OF FEBRUARY FOR FIVE YEARS.
1929.
1930.
1931.
1932.
MONTH OF FEBRUARY.
1933.
Total.
New Capital Refunding.
Total.
New Capital. Refunding.
Total.
New Capital. Refunding.
Total.
New Capital. Refunding.
Total.
New Capital. Refunding.
Corporate$
$
$
$
$
$
$
$
$
Domestic$
S
$
$
$
$
460.000 229,526.000
152.066.000
21.264,000 245.470.910
224.206.910
48,420.000
7.000.000
1.420.000
30.138.000
1.938.000
28.200,000
Long-term bonds and notes_
32,939.000
1,314.000
31.625.000
19,429,000
19,429,000
19.640.000
5.500,000
14.140.000
13.040.100
6,975.000
10.600.000
6.065.100
term
Short
3,750,000
6.850.000
4,616,000
4.616.000
27,846.W 278,102.975
77,-- -250.256.425
21.335.150
--_-_ --7.509,000
7.509.000
21.335.150
2,312.775
Preferred stocks
2.312.775
15,086,800 393,419.575
378,332,775
127,776.442
871,500 128,647.942
19,256,844
19.256,844
1,500.000
Common stocks
1,500.000
Canadian
16.000.000
16.000,000
42,300,000
42.300.000
Long-term bonds and notes_
Short term
1,500,000
1.500,000
Preferred stocks
Common stocks
Other Foreign
37,000.000
2,000,000
35,000,000
32,655.000
32,655.000
Long-term bonds and notes_
600,000
600,000
Short term
Preferred stocks
6,160.000
6.160,000
Common stocks
853.184,200 122.393.350 975.577,550
27,635,500 496.209.002
468,573.502
74.250.944
13.975,000
88.225.944
Total corporate
44,550.775
5.688.000
36,241,000
37,555,000
1,314.000
38.862.775
1.750.000
250,000
1.500.000
6.000.000
1,000,000
5.000.000
4,300,000
4,300,000
Canadian Government
10.000,000
10,000.000
40.000.000
40.000.000
Other foreign Government_
2.000,000
2,000,000
9.000.000
9.000,000
'
15,000.000
Farm Loan issues
15,000.000
1,400,000
1,400.000
69.901,723
68.483,723
1,418.000
81.558.516
80,421.516
1.137.000
1,237.000 119,446.501
118.209.501
35.292.689
Municipal, State, cities, &c
510.125
34,782.564
*635$00 *17.557.818
*16.922.218
1,175.000
1,175.000
287.000
United States Possessions_
287.000
934.342,923 124.061,3501,058.404.273
625,767.518
595,995.018
15,212,000 220.972,445
29.772.500
205.760.445
95,130.464
Grand total
36.876,600
21,198.125
73.932.339
56.512.818
19.636.218
* Figures do not include 371.402.351 Reconstruction Finance Corooratim.advances to municinalities, either actually made or Promised during February.
CHARACTER AND GROUPING OF NEW CORPORATE ISSUES IN THE UNITED STATES FOR THE MONTH OF FEBRUARY FOR FIVE YEARS.
Total,
31,625,000
414,000
New Capital.
281000.000
1932.
Refunding.
1,938,000
Total.
29.938.000
1931.
New Capital. Refunding.
8,000.000
29.350.000
4.000.000
3.000.000
1930.
New Capital. Refunding.
6
104.316.000
13.909.000
12.000.000
111.295,000
6.935.000
32.350,000
1.500.000
900,000
Total.
Total.
118.225,000
118.230 000
1.500.000
900,000
New Capital.
4,695.000
69.017.500
16.910,000
7.000.000
68,740.000
940,000
575,000
55,460,910
55.460.910
11,200,000
15,290.000
15,290,006
34,048.500
3,590.000
3,590,000
1.938.000
200,000
30.138.000
480.000
41.420.000
7.000.000
480,000
48,420,000
1.000.000
299.161.910
420.000
21,264.000
1.420.000
320,425,910
21.500.000
45,695,000
203,066,000
1.000.000
2.650.000
100.000
4.950.000
2.650.000
100.000
3.300.000
6,225,000
9.525.000
6,000.000
2.500,000
8.500,000
100,000
500,000
600.000
2.900.000
2,565.100
250,000
2.815,100
10,600,000
100.000
6,065.100
6,975.000
100.000
13,040,100
2.312.775
22.390,844
22.390,844
45.714.820
1.056.500
2,325,000
2,325,000
76.551.310
5,000.000
1,400,000
2,050,000
2,050.000
26,765.844
26.765,844
15.390.000
10.158,962
155.271,592
9,400,000
9,400.000
32,939.000
4,616.000
3.950.000
2.900.000
4,616.000
6.850,000
3,750,000
2,312.775
1,500,000
3.812,775
1,500.000
3.812.775
3.950.000
30,312.775
900.000
2.900.000
37.555.000
1,700,000
38,862.775
5.688,000
4.000.000
9,225,000
12.000.000
64.265.844
500,000
2,925.000
2,900,000
1,000.000
4.588.000
100,000
8.000.000
55.040.844
2.425.000
36,241.000
414.000
6,155,100
250,000
6,405.100
1,700.000
44.550.775
2,050.000
580.000
74.250,944
13.975,000
2.050.000
580,000
88.225,944
4,950.000
34,900,775
100.000
1,000.000
1,055.000
1,500.000
1.035.000
800.000
1,000,000
1.750.000
14,140,000
104.316.000
163.009.820
2.556,500
900.000
1.000.000
133.067.220
6.500 000
17,725.000
800,000
9,400,000
16,390.000
12.908.962
468 573.502
1.000,000
4.055,000
1.500.000
1.035.000
800.000
Total.
11,695.000
137,757.500
17.850.000
11,775,000
34,048,500
2,525,000
900.000
200,000
28,200.000
1929.
Refunding.
2.205,000
79.460.000
21.500,000
47.900.000
282.526,000
2,525,000
5,500,000
871,500
871.500
13,909.000
9,435,000
3.871,500
420.000
27.635,500
9.000.000
9,000,000
6.004,000
6.004,000
1,000,000
1,750.000
19,640,000
2.500.000
20.029,000
2.500,000
20,029,000
45.714.820
1,056,500
3.000,000
106.578,180
19.67-5,490
6.140,000
11.260.000
112,718.180
30.938.490
13.531,620
63.011.198
5,396.832
78.196.330
25.840.000
200,000
217.284,050
100.372,500
630.089.200
978,950
18.811%400
1,200,000
4.543.000
42.933,350
14,510,570
81 ,822.598
6,596.832
78.196,330
25.840,000
200,000
217,284.050
104.915.500
673,022,550
4,695.000
178,120.680
36,588,490
7.000,000
74,880.000
12.200,000
11.695.000
253,000,680
48,788,490
13.531.620
83.211.198
5.396.832
118,248.830
25.840 000
200.000
238.784,050
148,567.500
853,184.200
978,950
19,380.400
1,200.000
14,510,570
102.597,598
6.596,832
118.248,830
25,840,000
200,000
238,784,0.50
155.315.500
975.577,550
77,422.810
5,000,000
1.400,000
15,390.000
10,158.962
156,143,092
118.225,000
172,444.820
2,556.500
900.000
Lonumn
136,938.720
6.500,000
17.725,000
800.000
9.400.000
16,390.000
13.328.962
496,209,002
6.748,000
122.393,350
aja!U0110 fUpUBULI
1933.
MONTH OF FEBRUARY.
New Capital. Refunding.
Long Term Bonds and Notes
Railroads
31,625.000
Public utilities
414.000
Iron, steel, coal, copper, &c
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
Oil
Land, buildings, &c
900,000
Rubber
Shipping
Inv. trusts, trading, holding, &c..
Miscellaneous
Total
31.625,000
1,314,000
Short Term Bonds and Notes
Railroads
4,616,000
l'ublic utilities
Iron, steel, coal copper. &c
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
Oil
Land, buildings, &c
Rubber
Shipping
Inv. trusts, trading, holding, &c_ _
Miscellaneous
Total
4,616,000
Stocks
Railroads
Public utilities
Iron. steel, coal, copper, &c
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
Oil
Land. buildings, &c
Rubber
Shipping
Inv. trusts, trading, holding, &c _
Miscellaneous
Total
Total
Railroads
36.241.000
Public utilities
414.000
Iron, steel, coal copper, Szc
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
Oil
Land, buildings, &c
900.000
Rubber
Shipping
Inv. trusts, trading, holding, &c_
Miscellaneous
Total corporate securities
36.241,000
1,314.000
Total.
2
536,404,000
34.989,000
406,220.725
889,737.963
27.100.000
7,400,000
2,000,000
41,000.000
600.000
3,000,000
264,940.542 1,946,451,688
4,000,000
5,500.000
25,750,000
3,376,600
apILION3 lEptIVII74
145,612.446
1,495.000
272.317.142 2.121.809,134
CHARACTER AND GROUPING OF NEW CORPORATE ISSUES IN THE UNITED STATES FOR TWO MONTHS ENDED FEBRUARY 28 FOR FIVE
YEARS.
1933.
1932.
1931.
1930.
1929.
TWO MONTHS ENDED FEB. 28. New Capital. Refunding.
Total,
New Capital, Refunding.
Total.
Total,
New Capital. Refunding.
New Capital. Refunding.
Total.
New Capital. Refunding.
Total.
Long Term bonds and Notes
$
Railroads
12,000,000
31.625.000
43,625.000
130,160,000
56,844.000 187,004.000
111,711,000
66,997,000 178.708.000
53.531,000
19,777,000
73,308,000
Public utilities
6.821.000
31,518.000
38.339.000
68,270.000
1.938.000
70.208,000
174.591,000 123,928.000 298.519.000
459,295,000
15,935.000 475,230.000
105,667,500 101,240.000 206.907,500
Iron, steel, coal, copper, d:c
15,250,000
15,250.000
1,500.000
1.500.000
35.763,500
3,186.500
38,950.000
Equipment manufacturers
300,000
300,000
900,000
900,000
Motors and accessories
•
Other industrial and manufacturing
50.492.000
50,492,000
56.205,910
105,000
56.310,910
30.300,000
575.000
30,875,000
011
1,600,000
400.000
2,000.000
Land, buildings, &c
900.000
900.000
1,075.000
1,075.000
7.190.000
8,110.000
920.000
38.652,500
38,652,500
92.333.500
2,780,000
95,113.500
Rubber
1,000,000
1,000,000
Shipping
9,400.000
9,400,000
1,000,000
6.000,000
7.000.000
Inv. trusts, trading, holding, &c_
60.000,000
60,000,000
36,500,000
36,500.000
Miscellaneous
200.000
200,000
980.000
980.000
10,500.000
420,000
10,920,000
110,645,000
2.205.000 112,850.000
Total
19,721,000
63.143,000
82,864,000
69.545.000
1,938.000
71,483.000
378,963,000 181,692.000 560,655,000
748,164,410
83,457,000 831,621,410
468,340.500 136.163.500 604.504,000
Short Term Bonds and Notes
Railroads .
4,616.000
4.616.000
3.950.000
1,000,000
4.950.000
Public utilities
6.500.000
500,000
7.000.000
750.000
4,150.000
4.900,000
17,875,000
28. - 25.600
5
10.650,000
43,372,000
12.628,000
.
56,000.000
5.134.000
3.781,000
8,915,000
Iron.steel,coal copper,&c
4.342.000
4,342,000
100,000
100.000
3.000,000
3,000,000
Equipment manufacturers
Motors and accessories
1.600.000
1.600.000
Other industrial and rnanufacturhap
300.000
800.000
500.000
7.655.000
3,400,000
11,055.000
9.000.000
9,000.000
Oil
709,000
1.500.000
791.000
1.500,000
1,500,000
Land, buildings, &c
a
3.050,000
3.050,000
4,083.850
5.283.850
1,200,000
5,330.000
375,000
5.705,000
10,924.000
10,924.000
Rubber
800.000
•
800.000
Shipping
Inv. trusts, trading, holding, &c_
1,000.000
1,000.000
Miscellaneous
100,000
100,000
3.150.000
3,150,000
5,805.000
945.000
6.750
.066
Total
7,750,000
500.000
15,958.000
15,458,000
5.250,000
13.000,000
23.067.850
13.141,000 36,208.850
67.407,000
16,403.000
83.810.000
30.863.000
4.726.000
35,589.000
Stocks
Railroads
Public utilities
4.412,775
4.412.775
61,329,623
61.329,623
133.214,820
133,214,820
197,897,656
14,365,000 212,262,656
Iron,steel, coal, copper, &c
22,558,500
22.558.500
27,741.990
15,827.500
43,569.490
Equipment manufacturers
Motors and accessories
992,750
992,750
24,034,620
2.340,950
26,375.570
Other industrial and manufacturing
150.000
3,250.000
3.250,000
150.000
5,256.250
• 5,256,250
77.201.310
-- 1:866 78,072,810 180.051,108 71.480,820 251.531.928
0
Oil
7,274.804
7,274.804
13,581,832
15,085.272
28,667,104
Land, buildings, drc
1,032,500
1,032,500
1.560,000
1,560,000
80,811.330
408,500
81,219.830
Rubber
2,168.750
2,168,750
25,840,000
25,840.000
Shipping
10,100.000
10.100,000
Inv. trusts, trading. holding, &c _ _
2,050.000
2.050,000
18.640.000
18.640.000
479.297,550
479,297.550
Miscellaneous
1.500.000
1.500.000
2.400,000
2.400.000
20,642,462
-----20,642,462
142,951.560
4,543,000 147.494,560
Total
3.250.000
8,231.525
3.250.000
8,231,525
72,068.373
72.068.373
282.084,646
871.500 282,956,146 1,182.307.646 124,051,042 1,306,358.688
Total
Railroads
48.241,000
3.950.000
12,000.000
36.241.000
1,000,000
4.950,000
130.160.000
56.844.000 187,004.000
111.711,000
66.997.000 178.708.000
53.531.000
19,777.000
73.308,000
Public utilities
45.339,000
38.018.000
73.432.775
7,321.000
6,088.000
79.520,775
253.795.623 134.578.000 388.373.623
635.881,820
28,563,000 664.444.820
308,699.156 119.386.000 428.085,156
Iron,steel, coal copper. &c
4,342.000
4,342.000
100.000
15.250.000
100.000
15,250.000
27.058.500
27.058.500
63,505,490
19,014,000
82.519.490
Equipment manufacturers
300.000
300.000
900.000
900.000
Motors and accessories
2.592,750
2.592.750
24.034.620
2,340,950
26,375,570
Other industrial and manufacturing
3.250.000
3.250,000
150.000
150.000
56.048.250
56.548,250
500.000
141,062.220
4,171,856 145,438,720 219,351,108 72,055.820 291.406.928
Oil
709.000
1.500.000
791,000
8.774.804
8.774.804
15.181,832
15,485.272
30.667.104
Land, buildings, Sze
4.125.000
900.000
900.000
4.125.000
12,306.350
14,426.350
2.120.000
45,542.500
375,000
45,917,500
184.068,830
3.188,500 187,257.330
Rubber
2,168.750
2,168.750
800,000
800.000
26.840.000
26,840.000
Shipping
9,400,000
9,400,000
11,100.000
6,000,000
17.100.000
Inv. trusts, trading, holding, &c_
2,050,000
2,050,000
79,640,000
79,640,000
515,797,550
515.797,550
Miscellaneous
1,700.000
1.700.000
3.480.000
3.480.000
34.292.462
420,000
34,712,462
259,401,560
7,6- 1,666 267,094,560
9
Total corporate securities
ria 23,471.000
78,601,000 102.072.000
85,526,525
92.714.525
7,188,000
474.099,223 194.833.000 668.932.223 1.097.656.056 100.731,500 1.198.387.556 1.681.511,146 264.940.542
1.946.451.688
b.5
II rionN
tu88:888
1929.
Refunding.
$
134,163,500
4,726,000
50,325,450
73.725,592
er6r
SUMMARY OF CORPORATE, FOREIGN GOVERNMENT, FARM LOAN AND MUNICIPAL FINANCING FOR THE TWO MONTHS ENDED FEBRUARY
28 FOR FIVE YEARS.
TWO MONTHS ENDED FEB. 28.
1933.
1932.
1931.
1930.
New Capital. Refunding.
Total.
New Capital Refunding.
CorporateTotal.
New Capital. Refunding.
Total.
New Capital. Refunding.
Total.
New Capital.
Domestic$
$
2
$
2
$
$
$
$
$
2
$
S
Long-term bonds and notes_
19,721,000
63,143,000
82.864,000
69,545,000
1,938,000
71.483.000
258,963,000 181,692,000 440,655.000
660,209,410
65,457,000 725,666.410
402.240,500
Short term
500,000
15,458.000
15,958,000
7,750,000
5,250,000
13.000.000
23,067.850
36,208,850
13,141.000
62,407,000
16,403,000
78.810,000
30.263.000
Preferred stocks
2,500,000
2.500,000
6,562,775
6.562.775
34,012.779
34,012.779
25,810,15025.810,150
355.895,275
Common stocks
750,000
750,000
1,668,750
1,668.750
38,055,594
38.055.594
250,114.496
--871;806 250.985.996
816,012,371
Canadian
Long-term bonds and notes_
70,000,000
70.000,000
55.300.000
18,000,000
73,300.000
27,100.000
Short term
Preferred stocks
7,400.000
Common stocks
Other Foreign
Long-term bonds and notes
32,655,000
50,000.000
50000,000
,
32,655,000
39,000,000
Short term
5,000,000
5,000,000
600.000
Preferred stocks
Common stocks
6.160,000
6,160 000
3,000,000
Total corporate
23,471.000
78,601.000 102.072,000
£35,526.525
7,188,000
92,714.525
474,099,223 194,833,000 668,932.223 1.097.656,056 100.731,500 1,198,387,556 1,681,511.146
Canadian Government
16,300,000
16,300,000
3,158,000
15,300,000
1,500,000
Other foreign Government_
44.000,000
25.750,000
Farm Loan issues
10,900.000
10.900.000
27,500.000
27,500,000
14,500,000
2,000,000
14,500,000
2,000,000
Municipal, States, cities, &c
*50,045.998
*3,619,950 *53,665,948
172,988.628
552,125 173.540.753
167,519,908
2,575.500 170,095.408
188,340.830
3,060.500 191.401.330
142,275,846
United States P
ions_
287,000
287,000
1.500.000
1,500,000
1,495,000
Grand total
84.416.998
82.220.950 166.637,948
258.802.153
35.240.125 294.042.278 672.419.131 197.408.500 869.827,631 1.345,638.886 106.950,000 1.452.588,88 1.852.531.992
* Figures do not include a total of $124,676,167 Reconstruction Finance Corporation advances to municipalities, either actually made or promised during January and February
1933.
1621
Financial Chronicle
Volume 136
DETAILS OF NEW CAPITAL FLOTATIONS DURING FEBRUARY 1933.
LONG-TERM BONDS AND NOTES (ISSUES MATURING LATER THAN FIVE YEARS).
Amount.
Purpose of Issue.
Price.
To Yield
About.
Company and Issue and by Whom Offered.
$
Railroads—
31,825,000 Refunding
100
5.00 Baltimore & Ohio RR.Rel.dr Cen. Mtge.56 F, 1998. Offered to holders of company's 20-year 43%
cony. bonds series F, due March 1 1933.
Public Utilities—
414,000 General corporate purposes
88
6.11 Springfield (Mo.)Gas & Electric Co. 1st Mtge.Is A 1957. Offered by Lee Higginson Corp.; White.
Weld & Co. and Bedell <lc Co.
Land, Buildings, &c.—
900,000 Real estate mortgage
100
5.50 Church of the Little Flower (St. Louis) 1st. Mtge. Ois. 1935-43. Offered by Feetus .1. Wade
Jr., Bt. Louis.
SHORT-TERM BONDS AND NOTES (ISSUES MATURING UP TO AND INCLUDING FIVE YEARS).
Amount.
Purpose of Issue.
Price.
To Yield
About.
Railroads—
4,616,000 Refunding
Company and Issue and by Whom Offered.
5.75 New York & Erie RR. 3d Mtge. Extended 454s, March 1 1938. Offered to holders of company's
3d. mtge. extended 4H5. due March 1 1933.
FARM LOAN ISSUES.
Amount.
Price.
Issue and Purpose.
$
1,400,000 Federal Intermediate Credit Banks 234%
coll, trust deb. dated Feb. 15 1933 and due
In 9 months (to provide funds for loan purposes)
To Yield
About.
Price on spell°.
Offered Iv.
Charles R. Dunn. Fiscal Agent, New York.
ISSUES NOT REPRESENTING NEW FINANCING.
Par or No. (a) Amount
of Shares. Involved. Price.
200.000abs
5,400.000
27
To Yield
Aboun
Company and Issue and by Whom Offered.
United States Steel Corp. Common Stock.Offered to employees of company.
•Shares of no par value.
a Preferred stocks of a stated par value are taken at par, while preferred stocks of no pat value and all classes of common stocks are computed at their offering Prices.
President Hoover Signs Bankruptcy Bill—Designed to Provide Relief for
Individuals, Farmers and Railroads.
On March 3 President Hoover signed the bankruptcy
bill, the enactment of which by Congress was noted in
our issue of March 4, page 1479. The bill is intended to
provide relief for individuals, farmers and railroads suffering
from debt. From the Washington "Post" of March 4 we
take the following (Associated Press):
Strongly advocated by Mr. Hoover, the measure would set up machinery by which individual debtors might gain an extension of time
or a reduction of their debts by a cash settlement. It would be required
that a majority of the creditors, both in number and amount, would
agree to a petition to a Federal court to take that individual case under
Its protection.
Under the farm provision, farmers could proceed either as individuals
or under a clause providing that 14 other farmers in the same county
would ban together and would petition the court for a conciliation commissioner in order to gain an extension of time or a reduction of the total
debts.
In its issue of March 4 the New York "Journal of Commerce" published a dispatch from Washington March 3
which said in part:
Revision of the bankruptcy laws to ease the way of depressed debtors
was urged upon Congress by Mr. Hoover a year ago following an exhaustive
study of the bankruptcy cases made for the President by the Department
of Justice. Need for revision of the laws was again empahsized by the
President at the opening of the present session as a result of business
failures.
Under provisions of the bill a new set-up is established for railroad
reorganization under which the carriers or 5% of the creditors petition
the Inter-State Commerce Commission for a reorganization. Before
becoming operative, however, it must be approved by the Commission,
two-thirds of each class of creditors, and the Federal court.
The text of the newly enacted law follows:
R. R. 143591
AN ACT
To amend an Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States," approved July 1 1898, and
Acts amendatory thereof and supplementary thereto.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That the Act of July 11808 entitled
"An Act to establish a uniform system of bankruptcy throughout the
United States," as amended by the Acts of Feb. 5 1903, June 15 1906, June
25 1910, March 2 1917, Jan. 7 1922. May 27 1926, and Feb. 11 1932,
he, and it is hereby, amended by adding thereto a new chapter to read
as follows:
“CHAPTER VIII.
"Provision for the Relief of Debtors.
"Sec. 73. Additional Jurisdiction.—In addition to the jurisdiction
exercised in voluntary and involuntary proceedings to adjudge persons
bankrupt, courts of bankruptcy shall exercise original jurisdiction in
proceedings for the relief of debtors, as provided in Sections 74, 75, and 77
of this Act.
"Sec. 74. Compositions and Extensions.—(a) Any persons excepting
a corporation may file a petition, or, in an involuntary proceeding before
adjudication, an answer within the time limited by section 18(b) of this
Act, accompanied in either case, unless further time is granted, by his
schedules, stating that he is insolvent or unable to meet his debts as they
mature, and that he desires to effect a composition or an extension of time
to pay his debts. The term 'debt' for the purposes of an extension proposal under this section shall include all claims of whatever character
against the debtor or his property,including a claim for future rent, whether
or not such claims would otherwise constitute provable claims under this
Act. Upon the filing of such a petition or answer the judge shall enter
an order either approving it as properly filed under this section. if satisfied
that such petition or answer complies with this section and has been filed
in good faith, or dismis' sing it. If such petition or answer is approved,
an order of adjudication shall not be entered except as provided in subdivision (1) of this section: Provided, however, That in staying the action
for adjudication in an involuntary proceeding the court shall make such
stay conditional upon such terms for the protection and indemnity against
loss by the estate as may be proper, and that in any other proceeding
under this section the court may, as the creditors at the first meeting may
direct, impose similar terms as a condition of delaying the appointment
of a trustee and the liquidation of the estate. Any persons by or gainst
whom a petition is filed shall be referred to in the proceedings under this
section as 'debtor.' The term 'creditor' shall include for the purpose
of an extension proposal under this section all holders of claims of whatever
character against the debtor or his property including a claim for future
rent, whether or not such claims would otherwise constitute provable
claims under this Act. A claim for future rent shall constitute a provable
debt and shall be liquidated under section 63 (b) of this Act.
"(b) After the filing of such petition or answer the court may upon
reasonable notice to creditors and attorneys of record appoint a custodian
or receiver, who shall inventory the debtor's estate and exercise such
supervision and control over the conduct of the debtor's business as the
creditors at any meeting or the court shall direct.
"(c) The custodian or receiver, or if none has been appointed, the court,
shall promptly call the first meeting of creditors, stating in the notice
that the debtor proposes to offer terms of composition or extension, and
inclosing with the notice a summary of the inventory, a brief statement
of the debtor's indebtedness as shown by the schedules, and a list of the
names and addresses of the secured creditors and the fifteen largest unsecured creditors, with the amounts owing to each as shown by the schedules.
Any creditor may appear at or before the first meeting and controvert
the facts alleged in the petition. In such case the court shall determine
as soon as may be the issues presented, without the intervention of a
jury, and unless the material allegations are sustained by the proofs shall
dismiss the petition.
"(d) At the first meeting (1) the debtor may be examined; (2) the
creditors may nominate a trustee, who shall thereafter be appointed by
the court in case it becomes necessary to liquidate the estate as provided
in subdivision (I) of this section; and (3) the court shall, after hearing
the parties in interest, fix a reasonable time within which application for
confirmation shall be made. The court may later extend such time for
cause shown, and may require, as a condition of such extension, additional
terms for the protection of and indemnity against loss by the estate as
may be proper.
"(e) An application for the confirmation of a composition or extension
proposal may be filed in the court of bankruptcy after, but not before.
it has been accepted in writing by a majority in number of all creditors
whose claims if unsecured have been allowed. or if secured are proposed
to be affected by an extension proposal, which number must represent
a majority in amount of such claims; and the money or security necessary
to pay all debts which have priority unless waived and the costa of the
proceedings, and In case of a composition the consideration to be paid
by the debtor to his creditors, have been deposited in such place as shall
be designated by and subject to the order of the court.
"(f) A date and place, with 'reference to the convenience of the parties
in interest, shall be fixed for a hearing upon each application for the con-
1622
Financial Chronicle
March 11 1933
firmation of the composition or extension proposal, and such objections
"(b) Upon filing of any petition by a farmer under this section there
as may be made to its confirmation.
shall be paid a fee of $10 to be transmitted to the clerk of the court and
"(g) The court shall confirm the proposal if satisfied that (1) it includes
covered into the Treasury. The conciliation commissioner shall receive
an equitable and feasible method of liquidation for secured creditors
as compensation for his services, including all expenses, a fee of $10 for
whose claims are affected and of financial rehabilitation for the debtor;
each case docketed and submitted to him, to be paid out of the Treasury.
(2) it is for the best interests of all creditors; (3) that the debtor has not
.
A supervising conciliation commissioner shall receive, as compensation
been guilty of any of the acts, or failed to perform any of the duties, which'
for hiN services, a per diem allowance to be fixed by the court, in an amount
would be a ground for denying his discharge; and (4) the offer and its
not in excess of $5 per day, together with subsistence and travel expenses
acceptance are In good faith, and have not been made or procured except
In accordance with the law applicable to officers of the Department of
as herein provided, or by any means, promises, or acts herein forbidden.
Justice. Such compensation and expenses shall be paid out of the Treasury.
In application for extensions the court shall require proof from each creditor
If the creditors at any time desire supervision over the farming operafiling a claim that such claim is free from usury as defined by the laws
tions of a farmer, the cost ofsuch supervision shall be borne by such creditors
of the place where the debt is contracted.
or by the farmer, as may be agreed upon by them, but in no instance shall
"(h) The terms of an extension proposal may extend the time of paythe farmer be required to pay more than one-half of the cost of such superment of either or both unsecured debts and secured debts the security
vision. Nothing contained in this section shall prevent a conciliation
for which is in the actual or constructive possession of the debtor or of
commissioner who supervises such farming operations from receiving such
the custodian or receiver, and may provide for priority of payments to
compensation therefor as may be so agreed upon. No fees, costs, or
be made during the period of extension as between secured and unsecured
other charges shall be charged or taxed to any farmer or his creditors by
creditors. It may also include specific undertakings by the debtor during
any conciliation commissioner or with respect to any proceeding under
the period of the extension, including provisions for payments on account,
this section, except as hereinbefore in this section provided. The conciliation
and may provide for supervisory or other control over the debtor's business
commissioner may accept and avail himself of office space, equipment.
or affairs during such period by a creditors' committee or otherwise, and
and assistance furnished him by other Federal officials, or by any State,
for the termination of such period under certain specified conditions:
county, or other public officials. The Supreme Court Is authorized to
Provided, That the provisions of this section shall not affect the allowances
make such general orders as it may find necessary properly to govern the
and exemptions to debtors as are provided for bankrupts under title 11,
administration of the office of conciliation commissioner and proceedings
chapter 3, section 24. of the United States Code, and such allowances
under this section; but any district court of the United States may. for
and exemptions shall be set aside for the use of the debtor in the manner
good cause shown and in the interests of justice, permit any such general
provided for bankrupts.
order to be waived.
"(I) Upon its confirmation an extension proposal shall be binding upon
"(c) At any time within five years after this section takes effect, a pethe debtor and his unsecured and secured creditors affected thereby:
tition may be filed by any farmer, stating that the farmer is insolvent
Provided. however, That such extension or composition shall not reduce
or unable to meet his debts as they mature, and that it is desirable to
the amount of or impair the lien of any secured creditor, but shall affect
effect a composition or an extension of time to pay his debts. The petition
only the time and method if its liquidation.
or answer of the farmer shall be accompanied by his schedules. The
"(J) Upon the confirmation of a composition the consideration shall
petition and answer shall be filed with the court, but shall, on request
be distributed as the court shall direct, and the case dismissed: Provided,
of the farmer or creditor, be received by the conciliation commissioner
That the debts having priority of payment under title 11, chapter 7
for the county in which the farmer resides and promptly transmitted by
section 104, of the United States Code, for bankrupt estates, shall have
him to the clerk of the court for filing. If any such petition is filed, an
priority of payment in the same order as set forth in said section 104 under
order of adjudication shall not be entered except as provided hereinafter
the provisions of this section in any distribution, assignment, composition,
In this section.
or settlement herein provided for. Upon the confirmation of an extension
"(d) After the filing of such petition or answer by the farmer,the farmer
proposal the court may dismiss the proceeding or retain jurisdiction of
shall, within such time and in such form as the rules provide, file an Inthe debtor and his property during the period of the extension in order
ventory of his estate.
to protect and preserve the estate and enforce the terms of the extension
"(e) The conciliation commissioner shall promptly call the first meeting
proposal.
of creditors, stating in the notice that the farmer proposes to offer terms
"(k) The judge may, upon the application of the parties in interest,
of composition or extension, and inclosing with the notice a summary of
filed at any time within six months after the composition or extension
the inventory, a brief statement of the farmer's indebtedness as shown
proposal has been confirmed, set the same aside and reinstate the case,
by the schedules, and a list of the names and addresses of the secured
if it shall be made to appear upon a trial that fraud was practiced in the
and unsecured creditors, with the amounts owing to each as shown by the
procuring of such composition or extension, and that knowledge thereof
schedules. At the first meeting of the creditors the farmer may be exhas come to the petitioners since the firmation thereof.
amined, and the creditors may appoint a committee to submit to the
"(I) If (I) the debtor shall fall to comply with any of the terms required •conciliation commissioner a supplementary inventory of the farmer's
of him for the protection of and indemnity against loss by the estate;
estate. The conciliation commissioner shall, after hearing the parties
or (2) the debtor has failed to make the required deposit in case of a comIn interest, fix a reasonable time within which application for confirmation
position; or (3) the debtor's proposal has not been accepted by the creditors;
shall be made, and may later extend such time for cause shown. After
or (4) confirmation has been denied; or (5) without sufficient reason the
the filing of the petition and prior to the confirmation or other disposition
debtor defaults in any payment required to be made under the terms of
of the composition or extension proposal by the court, the court shall
an extension proposal when the court has retained jurisdiction of the
exercise such control over the property of the farmer as the court deems
debtor or his property, the court may appoint the trustee nominated by
In the best interests of the farmer and his creditors.
the creditors at the first meeting, and if the creditors shall have failed
"(f) There shall be prepared by, or under the supervision of, the conto so nominate. may appoint any other qualified person as trustee to
ciliation commissioner a final inventory of the farmer's estate, and in the
liquidate the estate. The court shall in addition adjudge the debtor a
preparation of such inventory the commissioner shall give due considerabankrupt if satisfied that he commenced or prolonged the proceeding
tion to the inventory filed by the farmer and to any supplementary Infor the purpose of delaying creditors and avoiding an adjudication in
ventory filed by a committee of the creditors.
bankruptcy, or If the confirmation of his proposal has been denied. No
"(g) An application for the confirmation of a composition or extension
order of liquidation or adjudication shall be entered in any proceeding
proposal may be filed in the court of bankruptcy after but not before (1)
under this section instituted by or against a wage earner or a person enit has been accepted in writing by a majority in number of all creditors
gaged chiefly in farming or the tillage of the soil unless the wage earner
whose claims have been allowed. Including secured creditors whose claims
or a person engaged chiefly in farming or the tillage of the soil consents.
are affected, which number shall represent a majority in amount of such
"(m) The filing of a debtor's petition or answer seeking relief under
claims. and (2) the money or security necessary to pay all debts which have
this section shall subject the debtor and his property, wherever located,
priority unless waived, and in case of a composition, the consideration
to the exclusive jurisdiction of the court in which the order approving the
to be paid by the farmer to his creditors has been deposited in such place
subdivision (a) is filed. In proceedings
petition or answer as provided In
as shall be designated by and subject to the order of the court.
under this section, except as otherwise provided therein, the jurisdiction
"(h) A date and place, with reference to the convenience of the parties
and powers of the covrt. the title, powers, and duties of its officers and.
in Interest, shall be fixed for a hearing upon each application for the consubject to the approval of the court, their fees, the duties of the debtor,
firmation of the composition or extension proposal and upon such objections
and the rights and liabilities of creditors, and of all persons with respect
as may be made to its confirmation.
to the property of the debtor and the jurisdiction of appellate courts
"(I) The court shall confirm the proposal if satisfied that (1) it includes
Shall be the same as If a voluntary petition for adjudication had been
an equitable and feasible method of liquidation for secured creditors and
filed and a decree of adjudication had been entered on the day when the
of financial rehabilitation for the farmer; (2) it is for the best interest of
debtor's petition or answer was filed and any decree of adjudication thereall creditors; and (3) the offer and its acceptance are in good faith, and
if it had been entered on that
after entered shall have the same effect as
have not been made or procured except as herein provided, or by any
day.
means, promises. or acts herein forbidden. In applications for extensions
"(n) In addition to the provisions of section 11 of this Act for the staying
the court shall require proof from each creditor filing a claim that such
of pending suits, the courts, on such notice and on such terms, if any,
claim is free from usury as defined by the laws of the place where the debt
as it deems fair and equitable, may enjoin secured creditors who may be
Is contracted.
affected by the extension proposal from proceeding in any court for the
"(j) The terms of a composition or extension proposal may extend the
enforcement of their claims until the extension has been confirmed or
time of payment of either secured or unsecured debts, or both, and may
denied by the court.
provide for priority of payments to be made during the period of extension
"(0) The judges of the courts of bankruptcy shall appoint sufficient
as between secured and unsecured creditors. It may also include specific
expedite the proceedings under this
referees to sit in convenient places to
undertakings by the farmer during the period of the extension, including
section.
provisions for payments on account, and may provide for supervisory or
"(p) Involuntary proceedings under this section shall not be taken
other control by the conciliation commissioner over the farmer's affairs
against a wage earner.
during such period, and for the termination of such period of supervision
"Sec. 75. Agricultural Compositions and Extensions.—(a) Courts of
or control under conditions specified: Provided, That the provisions of
bankruptcy are authorized, upon petition of at least fifteen farmers within
this section shall not affect the allowances and exemptions to debtors
any county who certify that they intend to file petitions under this section,
as are provided for bankrupts under title 11, chapter 3, section 24. of
to appoint for such county one or more referees to be known as conciliation
the United States Code, and such allowances and exemptions shall be
commissioners, or to designate for service in such county a conciliation
set aside for the use of the debtor In the manner provided for bankrupts.
commissioner previously appointed for an adjacent county. In case more
"(k) Upon its confirmation a composition or extension proposal shall
than one conciliation commissioner is appointed for a county, each combe binding upon the farmer and his secured and unsecured creditors affected
missioner shall act separately and shall have such territorial jurisdiction
thereby: Provided, That such composition or extension shall not reduce
Within the county as the court shall specify. A conciliation commissioner
the amount of or impair the lien of any secured creditor, but shall affect
Shall have a term of office of one year and may be removed by the court
only the time and method of its liquidation.
services are no longer needed or for other cause. No individual
"(I) Upon the confirmation of a composition the consideration shall
shall be eligible to appointment as a conciliation commissioner unless
be distributed under the supervision of the conciliation commissioner
he is eligible for appointment as a referee and in addition is a resident
as the court shall direct, and the case dismissed: Provided, That the
of the county, familiar with agricultural conditions therein and not engaged
debts having priority of payment under title 11. chapter 7. section 104.
in the farm-mortgage business, the business of financing farmers or transof the United States Code, for bankrupt estates, shall have priority of
actions in agricultural commodities or the business of marketing or dealing
payment in the same order as set forth in said section 104 under the proIn agricultural commodities or of furnishing agricultural supplies. In visions of this section in any distribution, assignment, composition or
each judicial district the court may, if it finds it necessary or desirable,
settlement herein provided for. Upon the confirmation of an extension
appoint a suitable person as a supervising conciliation commissioner.
proposal the court may dismiss the proceeding or retain jurisdiction of the
The supervising conciliation commissioner shall have such supervisory
farmer and his property during the period of the extension in order to
functions under this sections as the court may by order specify.
protect and preserve the estate and enforce through the conciliation corn-
If his
Volume 136
Financial Chronicle
missioner the terms of the extension proposal. The court may, after
hearing and for good cause shown, at any time during the period covered
by an extension proposal that has been confirmed by the court, set the
same aside, reinstate the case, and modify the terms of the extension
proposal.
"(m) The judge may, upon the application of any party in interest,
file at any time within six months after the composition or extension
proposal has been confirmed, set the same aside and reinstate the case,
if it shall be made to appear upon a trial that fraud was practiced in the
procuring of such composition or extension, and that knwoledge thereof
has come to the petitioners since the confirmation thereof.
"(n) The filing of a petition pleading for relief under this section shall
subject the farmer and his property, wherever located, to the exclusive
jurisdiction of the court. In proceedings under this section, except as
otherwise provided herein, the jurisdiction and powers of the co rt. the
title, powers, and duties of its officers, the duties of the farmer, and the
rights and liabilities of creditors, and of all persons with respect to the
property of the farmer and the jurisdiction of the appellate courts, shall
be the same as if a voluntary petition for adjudication had been filed and
a decree of adjudication had been entered on the day when the farmer's
petition or answer was filed.
"(o) Except upon petition made to and granted by the judge after
hearing and report by the conciliation commissioner, the following proceedings shall not be instituted, or if instituted at any time prior to the
filing of a petition under this section, shall not be.inaintained, in any
court or otherwise, against the farmer or his property, at any time after
the filing of the petition under this section, and prior to the confirmation
or other disposition of the composition or extension proposal by the court:
"(1) Proceedings for any demand, debt, or account, including any
money demand;
"(2) Proceedings for foreclosure of a mortgage on land, or for cancellation. rescission, or specific performance of an agreement for sale of
land or for recovery of possession of land;
"(3) Proceedings to acquire title to land by virtue of any tax sale;
"(4) Proceedings by way of execution, attachment, or garnishment;
"(5) Proceedings to sell land under or in satisfaction of any judgment
Or mechanic's lien: and
"(6) Seizure, distress, sale, or other proceedings under an execution
or under any lease, lien, chattel mortgage, conditional sale agreement,
crop payment agreement, or mortgage.
"(p) The prohibitions of subdivision (o) shall not apply to proceedings •
for the collection of taxes, or interest or penalties with respect thereto,
nor to proceedings affecting solely property other than that used in farming
operations or comprising the home or household effects of the farmer or
his family.
"(q) A conciliation commissioner shall upon request assist any farmer
in preparing and filing a petition under this section and in all matters
subsequent thereto arising under this section and farmers shall not be required to be represented by an attorney in any proceeding under this
section.
"(r) For the purpose of this section and section 74, the term 'farmer'
means any individual who is personally bona fide engaged primarily in
farming operations or the principal part of whose income is derived from
farming operations, and includes the personal representative of a deceased
farmer; and a farmer shall be deemed a resident of any county in which
such farming operations occur.
"Sec. 76. Extensions made pursuant to the foregoing provisions of
this chapter shall extend the obligation of any persons who is secondarily
liable to any person for the prompt payment of such debt or debts, or
any part thereof, and a copy of the order confirming such extension,
certified as required by the provisions of law with reference to judgments
and proceedings in courts of the United States, shall be sufficient evidence
that such extension has been confirmed in any suit or proceeding brought
against any such person so liable.
"Sec. 77. Reorganization of Railroads Engaged in Inter-Stole Commerce.
—(a) Any railroad corporation may file a petition stating that the railroad corporation Is insolvent or unable to meet its debts as they mature
and that it desires to effect a plan of reorganization. The petition shall
be filed with the court In whose territorial jurisdiction the railroad corporation, during the preceding six months or the greater portion thereof,
has had Its principal executive or operating office, anti a copy of the petition
shall at the same time be filed with the Inter-State Commerce Commission
hereinafter called the Commission; Provided. That when any railroad,
although engaged In inter-State commerce, lies wholly within one State,
such proceedings shall be brought in the Federal district court within
the State in which the railroad is located. The petition shall be accompanied by payment to the clerk of a filing fee of $100. which shall be in
addition to the fees required to be collected by the clerk under other sections
of this Act. Upon the filing of such a petition, the judge shall enter an
order either approving it as properly filed under this section, if satisfied
that such petition complies with this section and has been filed in good
faith, or dismissing it if not so satisfied. If the petition is so approved,
the court in which such order approving the petition is entered shall,
during the pendency of the prceedings under this section and for the purposes
thereof, have exclusive jurisdiction of the debtor and its property wherever
located. The railroad corporation shall be referred to in the proceedings
as a 'debtor.' Any corporation, the majority of the capital stock of which
having power to vote for the election of directors is owned, either directly
or indirectly through an intervening medium, by any railroad corporation
filing a petition as a debtor under this section, or substantially all of whose
properties are operated by such a debtor under lease or operating agreement
may file, with the court In which such other debtor had filed such a petition,
and in the proceeding upon such petition under this section, a petition
stating that it is insolvent or unable to meet its debts as they mature
and that it desires to effect a plan of reorganization in connection with,
or as a part of. the plan of reorganization of such other debtor; and thereupon such court shall have the same jurisdiction with respect to it, Its
property and its creditors and stockholders as the court has with respect
to such other debtor. Creditors of any railroad corporation having claims
or interests aggregating not less than 5 per centum of all the indebtedness
of such railroad corporation as shown In the latest annual report which
It has filed with the Commission at the time when the petition is filed,
may. If the railroad corporation has not filed a petition under this section,
but subject to first having obtained the approval of the Inter-State Commerce Commission, after hearing, upon notice to such railroad corporation,
file with the court in which such railroad corporation might file a petition
under the provisions of this section, a petition stating that such railroad
corporation is insolvent or unable to meet its debts as they mature and
that such creditors propose that It shall effect a reorganization; upon such
filing of such a petition copies thereof shall be filed with the Commission
and served by the petitioning creditors forthwith upon the railroad corporation; the railroad corporation shall, within ten days after such service,
answer such petition; if such answer shall admit the jurisdiction of the
court, that the claims of the petitioning creditors constitute the amounts
necessary to entitle them to file such petition under this section, and
1623
that the railroad corporation is either insolvent or unable to meet its debts
as they mature, the court shall, upon the filing of the recommendations of
the Commission in writing, enter an order approving the petition as properly
filed under this section if satisfied that it complies with this section and
has been filed in good faith, or disapprove if if not so satisfied; and if so
approved the proceedings thereon shall continue with like effect as if the
railroad corporation had itself filed a petition under this section; if such
answer shall deny either the jurisdiction of the court or that the claims of
the petitioning creditors constitute such necessary amounts or that the
railroad corporation is insolvent or unable to meet its debts as they mature,
the court shall summarily try the issues, and if after the filing of the recommendations of the Commission in writing it shall find that the petition
complies with this section, and has been filed in good faith, the court shall
enter an order approving the petition as properly filed under this section,
and the proceedings thereon shall continue with like effect as if the railroad
corporation had itself filed a petition under this section; otherwise the court
shall dismiss the petition.
"(b) A plan of reorganization within the meaning of this section (1)
shall include a proposal to modify or alter the rights of creditors generally,
or of any class of them, secured or unsecured, either through the issuance
of new securities of any character or otherwise;(2) may include, in addition,
provisions modifying or altering the rights of stockholders generally, or
of any class of them; (3) shall provide adequate means for the execution
of the plan, which may, so far as may be consistent with the provisions
of sections 1 and 5 of the Inter-State Commerce Act as amended, include
the transfer or conveyance of all or any part of the property of the debtor
to another corporation or to other corporations or the consolidation of the
properties of the debtor with those of another railroad corporation, or
the merger of the debtor with any other railroad corporation and the issuance of securities of either the debtor or any such corporation or corporations, for cash, or in exchange for existing securities, or in satisfaction
of claims or rights, or for other appropriate purposes; and (4) may deal
with all or any part of the property of the debtor. The term 'securities'
shall include evidences of indebtedness, either secured or unsecured,
bonds, stocks, certificates of beneficial interest therein, and certificates
of beneficial interest in property. The term 'stockholders' shall include
the holders of voting trust certificates. The term 'creditors' shall, except
as otherwise specifically provided in this section. include, for all purposes
of this section and of the reorganization plan, its acceptance and confirmation, all holders of claims, interests, or securities of whatever character
against the debtor or its property, including claim for future rent, whether
or not such claims, interests, or securities would otherwise constitute
provable claims under this Act.
"(c) Upon approving tlin petition as properly filed the judge (1) may
temporarily appoint from a panel of standing trustees qualified for such
service to be selected and designated in advance by the Conuniseion a
trustee or trustees of the debtor's estate, who shall have all the title and.
subject to the control of the judge and consistently with the provisions
of this section. shall exercise all the powers of a trustee appointed pursuant
to sectton 44 or any other section of this Act. and, subject to the judge's
control and the jurisdiction of the Commission as provided by the Inter
State Commerce Act as amended, shall have the power to operate the
business of the railroad corporation: (2) shall fix the amount of the bond
of such trustee or trustees and require the debtor. the trustee, or trustees
to give such notice as the order may direct to creditors and stockholders
and to cause publication thereof to be made at least once a week for two
successive weeks of a hearing to be held within thirty days after such
appointment, at which hearing or any adjournment thereof the judge may
make permanent such appointment, or may terminate it and may, in the
manner herein provided for the appointment of trustees, appoint a substitute trustee or substitute trustees, and in the same manner may appoint
an additional trustee or additional trustees, and shall fix the amount of
the bond of the substitute or additional trustee or trustees: the trustee
or trustees and their counsel shall receive such compensation as the judge
may allow within a maximum approved by the Commission; (3) may for
cause shown, and with the approval of the Commission. In accordance
with section 20 la) of the Inter State Commerce Act as amended, authorize
the trustee or trustees to issue certificates for cash, property, or other
consideration approved by the judge, for such lawful purposes and upon
such terms and conditions and with such security and such priority in
payments over existing obligations, secured or unsecured, as might in an
equity receivership be lawful; (4) shall require the debtor, at such time
or times as the judge may direct and In lieu of the schedules required by
section 7 of this Act, to file such schedules and submit such other information as may be necessary to disclose the conduct of the debtor's affairs and
the fairness of any proposed plan; (5) shall determine a reasonable time
within which the claims and interests of creditors and stockholders may
be filed or evidenced and after which no such claim or interest may participate in any plan except on order for cause shown; the manner in which
such claims and interests may be filed or evidenced and allowed, and, for
the purposes of the plan and its acceptance, the division of creditors and
stockholders into classes according to the nature of their respective claims
and interests. (6) shall cause reasonable notice of such determination,
or of the dismissal of the proceedings, or the allowance of fees or expenses,
to be given creditors and stockholders by publication or otherwise: (7) if
a plan of reorganization Is not proposed or accepted, or, if proposed and
accepted, is not confirmed, within such reasonable time as the judge may,
upon cause shown and after considering any recommendation which has
been filed by the Commission, allow, may dismiss the proceeding; (8)
may, within such maximum limits as are fixed by the Commiesion, as
elsewhere provided in subdivision (f) of this section, allow a reasonable
compensation for the services rendered and reimbursement for the actual
and necessary expenses insurred in connection with the proceeding and
plan by officers, parties in interest. reorganizatoin managers and committees
or other representatives of creditors or stockholders, and the attorneys
or agents of any of the foregoing, and by such assistants as the Commission with the approval of the judge may specially employ; and (9)
may on his own motion or at the request of the Commission refer any
matters, for consideration and report, either generally or upon specified
issues, to one of several special masters who shall have been previously
designated to act as special masters in any proceedings under this section
by order of any Circuit Court of Appeals and may allow such master
a reasonable compensation for his services. The Circuit Court of Appeals
of each circuit shall designate three or more members of the bar as such
special masters whom they deem qualified for such services, and shall
from time to time revise such designations by changing the persons designated or reducing or adding to their number, as the public interest may
require: Provided. however. That there shall always be three of such
special masters qualified for appointment In each circuit who shall in
their respective circuits hear any matter referred to them ender this section
by a judge of any District Court. For all purposes of this section claims
against a railroad corporation which would have been entitled to priority
over existing mortgages if a receiver In equity of the property of the debtor
had been appointed by a Federal court at the date of the riling of the
petition hereunder shall be entitled to such priority, and holders of such
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_ claims shall be treated
Financial Chronicle
as a separate class of creditors. If In any case in
which the issues have not already been tried under the provisions of subdivision (a) of this section any of the debtor's creditors shall, prior to the
hearing provided for in subdivision (c), clause (2), of this section, appear
and controvert the facts alleged in the petition, the judge shall determine,
as soon as may be, the issues presented by the pleadings. without the
intervention of a jury, and unless the material allegations of the petition
are sustained by the proofs shall dismiss the petition. Any creditor or
stockholder shall be heard on the question of the permanent appointment
of any trustee or trustees, the proposed recommendation, approval, or
confirmation of any reorganization plan, and upon filing a petition for
leave to intervene on such other questions arising in the proceeding as
the judge shall determine. The debtor, or the trustees if appointed,
shall within fifteen days or, upon cause shown, such other time as may
be directed by the judge, prepare (1) a list of all known bondholders and
creditors of, or claimants against, the debtor or its property, and the
amounts and character of their debts, claims, and securities, and the
-office address or place of business of each creditor or
last known post
claimant, and (2) a list of the stockholders of the debtor, with the last
known post-office address or place of business of each. The contents of
such lists shall not constitute admissions by the debtor or the trustees in
a proceeding under this section or otherwise. Such list shall be open to
the inspection of any creditor or stockholder of, or claimant against, the
debtor, during reasonable business hours, upon application to the debtor
or trustees, as the case may be.
"(d) Before creditors and stockholders of the debtor are asked finally
to accept any plan of reorganization, the Inter State Commerce Commission shall after due notico hold a public hearing at which the debtor shall
present its plan of reorganization and at which, also, such a plan may be
presented by the trustee or trustees, or by or on behalf of creditors of the
debtor, being not less than 10 per centum in amount of any class of creditors.
Following such hearing. the Commission shall render a report in which
it shall recommend a plan of reorganization (which may be different from
any which has been proposed) that will, in its opinion, be equitable, will
not discriminate unfairly in favor of any class of creditors or stockholders.
will be financially advisable, will meet with the requirements of sub'
division (g) of this section, and will be compatible with the public interest.
In such report the Commission shall state fully the reasons for its conclusions, and it may thereafter, upon petition for good cause shown, and
upon further hearing if the Commission shall deem necessary, modify any
of its recommendations and conclusions in a supplemental report stating
the reasons for such modification. Thereafter the plan of reorganization
recommended by the Commission shall be submitted in such manner as
the Commission may direct to the creditors and stockholders of the debtor
for acceptance or rejection, together with the report or reports of the
Commission thereon: and the Commission may at the same time afford
an opportunity to accept or reject any other plan of reorganization filed
as in this subdivision (:1) provided.
"(e) A plan of reorganization shall not be finally approved by the
Commission until it has been accepted in writing and such acceptance
has been filed in the proceeding by or on behalf of creditors holding twothirds in amount of the claims of each class whose claims or Interests
would be affected by the plan, and by or on behalf of stockholders of the
debtor holding two-thirds of the stock of each class: Provided, however.
That if adequate provision is made in the plan for the protection of the
interests, claims, and liens of any class of creditors or stockholders in the
manner provided In clauses (5) and (6) of subdivision (g), of this section,
then the acceptance of the plan by such class of creditor or stockholders
shall not be requisite to the approval of the plan: And provided further.
That the acceptance of stockholders shall not be requisite to the confirmation of the plan if (1) the judge shall have determined (a) that the corporation is insolvent, or (b) that the interests of stockholders will not be
adversely affected by the plan, or (c) that the debtor has pursuant to
authorized corporate action accepted the plan, and its stockholders are
bound by such acceptance. For the purposes of this section acceptance
by a creditor or stockholder shall include acceptance in writing executed
by him; or acceptance by his duly authorized attorney or committee acting
under authority executed by him subsequent to the recommendation of
the plan by the Commission. Upon acceptance of the plan in accordance
with the provisions of this subdivison (e) the Commission may, without
further proceedings, grant authority for the issue of any securities, assumption of obligations, transfer of any property, or consolidation or
merger of properties, to the extent contemplated by the plan consistent
with the purposes of the Inter-State Commerce Act as amended. If the
United States of America is directly a creditor or stockholder, the Secretary
of the Treasury is hereby authorized to accept or reject a plan in respect
of the interests or claims of the United States.
"(f) If the plan recommended by the Commission is accepted as provided in subdivision (e), the Commission shall thereupon certify the plan
to the court together with its approval thereof and that the same has been
so accepted, together with a report of the proceedings before it and its
conclusions thereon. If the plan accepted as provided in subdivision (e)
differs from the plan recommended by the Commission it shall, upon
acceptance, be submitted to the Commission, which shall hear all interested
parties upon such notice and subject to such rules and regulations as it
shall prescribe If after such hearing the Commission determines that
the accepted plan in its opinion is equitable and will not discriminate unfairly
In favor of any class of creditors or stockholders; will be financially advisable; will meet the requirements of subdivision (g) of this section; and
will be compatible with the public interest; the Commission shall thereupon certify the plan to the court, together with its approval thereof and
that the same has been duly accepted, and together with a report of the
proceedings before it and its findings and conclusions4thereon. The
Commission shall also, after hearing if necessary, fix the maximum compensation and reimbursement which may be allowed by the court pursuant
to clause (8) of subdivision (c) of this section: Provided. That unless'good
and sufficient reasons appear therefor no allowance for fees or compensation shall be made to officers of corporations who have acted as managers
or in any capacity in connection with the reorganization when such corporation had an interest in the matter No plan of reorganization shall
be confirmed in any proceeding under this section except upon the approval
of the Inter-State Commerce Commission certified to the court. If the
Commission shall decline to issue such a certificate it shall file in the proceeding its decision, specifying the particular grounds upon which it bases
its disapproval of the plan.
"(g) Upon such approval by the Commission, and after hearing such
objections as may be made to the approved plan. the judge shall confirm
the plan if satisfied that (1) the approved plan complies with the provisions
of subdivision (b) of this section, is equitable and does not discriminate
unfairly In favor of any class of creditors or stockholders; (2) all amounts
to be paid by the debtor or by any corporation or corporations acquiring
the debtor's assets, for services or expenses incident to the reorganization
and cost of financing, have been fully disclosed and are reasonable, or
are to be subject to the approval of the Judge: (3) the offer of the plan
and its acceptance are in good faith and have not been made or procured
March 11 1933
by any means or promises forbidden by this Act; (4) the approved plan
provides for the payment of all costs of administration and other allowances made by the court, except that compensation or reimbursement
provided for in subdivision (c), clause (8), of this section may be paid
in securities provided for in the plan if those entitled thereto will accept
such payment and the court finds such compensation reasonable; (5) the
approved plan provides, with respect to stockholders of any class the
acceptance of which is requisite to the confirmation of the plan, and who
would not become bound by the plan under the provision of subdivision
(h) of this section, and of which more than one-third have not accepted
the plan, adequate protection for the realization by them of the value
of their equity, if any. In the property of the debtor dealt with by the plan
either by a sale of the property at not less than a fair upset price, or by
appraisal and payment in cash either of the value of their stock or, at the
objecting stockholder's election, of the value of the securities, if any,
allotted to such stock under the plan; (6) the plan provides with respect
to any class of creditors the acceptance of which is requisite to the confirmation of the plan, and who would not become bound by the Plan
under the provisions of subdivision (h) of this section, adequate protection
for the realization by them of the value of their securities, liens, and claims,
either (a) by the sale of such property subject to their liens, if any, or
(b) by the sale free of such liens at not less than a fair upset price, and
the transfer of such liens to the proceeds of such sale, or (c) by appraisal
and payment in cash of either the value of such liens and claims or, at
the objecting creditors' election, the value of the securities allotted to
such liens and claims under the plan. Section 57, clause (h), of this
Act shall be applicable to the appraisal of securities under this section,
and the value of the unpaid balance shall be appraised as an unsecured
claim; and (7) the debtor, and every other corporation issuing securities
or acquiring property under the plan, is authorized by its charter or by
applicable State or Federal laws, upon confirmation of the plan, to carry
out the plan. In the case of a sale or appraisal under clause (5) or (6)
of this subdivison (g) the court shall refer to the Commission for its consideration and determination the amount to be fixed as the upset price
and the appraisal of any securities.
"(h) Upon such confirmation the provisions of the plan shall be binding
upon (1) the corporation. (2) all stockholders if the judge shall have determined (a) that the corporation is insolvent, or (b) that the interests of
stockholders will not be adversely affected by the plan. or (c) that the
debtor has pursuant to authorized corporate action accepted the plan
and its stockholders are bound by such acceptance, (3) all stockholders
of each class of which two-thirds in amount shall have accepted the plan,
(4) all creditors whose claims are payable in cash in full under the plan,
(5) all creditors entitled to priority under subdivision (c) of this section,
whose claims are not payable in cash in full under the plan, provided
two-thirds in amount of such creditors shall have accepted the plan in
writing filed in the proceeding, (6) all other unsecured creditors, provided
two-thirds in amount of such creditors shall have accepted the plan in
writing filed in the proceeding, and (7) all secured creditors of each class of
which two-thirds in amount shall have accepted the plan. The confirmation
of the plan shall discharge the debtor from its debts except as provided
in the plan. Upon confirmation of the plan by the Judge, the debtor and
other corporations affected by the plan, or organized or to be organized
for the purpose of carrying out the plan, shall, subject to the Jurisdiction
of the Commission, have full power and authority to put into effect and
carry out the plan and the orders of the judge relative thereto, the laws
of any State or the decision or order of any State authority to the contrary notwithstanding. In the event that the judge should disapprove
the plan he shall file an opinion stating his reasons therefor.
"(I) The provisions of sections 721, 722 723. 724,and 725 of the Revenue
Act of 1932 shall not apply to the issuance, transfers, or exchange of securities or filing of conveyances to make effective any plan of reorganization
confirmed under the provisions of this section,
"(j) Upon the confirmation of the plan the property dealt with by the
plan, when transferred and conveyed to the debtor or other corporation
or corporations provided for by the plan, or if no trustee or trustees have
been appointed when held by the debtor pursuant to the plan, shall, as
the court may direct, be free and clear of all claims of the debtor, its stockholders and creditors, except such as may consistently with the Provisions
of the plan be reserved in the order confirming the plan or directing 'Such
transfer and conveyance, and the court may direct the trustee or trustees,
or if there be no trustee or trustees the debtor, to make any such transfer
and conveyance. and•may direct the debtor to join in any such transfer
or conveyance made by the trustee or trustees. Upon the termination
of the proceeding a final decree shall be entered discharging the trustee
or trustees, if any, making such provision as may be equitable, and closing
the case.
"(k) If a receiver of all or any part of the property of a corporation
has been appointed by a Federal or State court, whether before or after
this amendatory Act takes effect, the railroad corporation may nevertheless file a petition or answer under this section at any time thereafter,
but if it does so and the petition is approved the trustee or trustees appointed under the provisions of this section shall be entitled forthwith to
possession of such property, and the judge shall make such orders as he
may deem equitable for the protection of obligations incurred by the
receiver and for the payment of such reasonable administrative expenses
and allowances in the prior proceeding as may be fixed by the court appointing said receiver within maximum limits approved by the Commission. If a receiver has been appointed by a Federal or State court
prior to the dismissal under subdivision (c), clause (7), of a proceeding
under this section, the judge may Include in the order of dismissal appropriate provisions directing the trustee to transfer possession of the debtor's
property within the territorial jurisdiction of such court to the receiver
so appointed, upon such terms to the judge may deem equitable for the
protection of obligations incurred by the trustee and for the payment
of administrative expenses and allowances In the proceeding hereunder.
For the purposes of this section the words 'Federal court' shall include
the district courts of the United States and of the Territories and Possessions
to which this Act is or may hereafter be applicable. the Supreme Court
of the District of Columbia, and the United States Court of Alaska.
"(1) in addition to the provisions of section 11 of this Act for the staying
of pending suits against the debtor, such stilts shall be further stayed until
after final decree the judge may. upon notice and for cause shown, enjoin
or stay the commencement or continuance of any judicial proceeding
to enforce any lien upon the estate until after final decree.
"im) A certified copy of an order confirming a plan of reorganization
shall be evidence of the jurisdiction of the court, the regularity of the
proceedings and the fact that the order was made. A certified copy of
an order directing the transfer and conveyance or the property dealt with
by the plan as provided in subdivision (J) of this section shall be evidence
of the transfer and conveyance of title accordingly, and if recorded shall
Impart the same notice that a deed if recorded would Impart.
"In) in proceedings under this section and consistent with the provisions thereof, the jurisdiction and powers of the court, the duties of the
debtor and the rights and liabilities of creditors, and of all persons with
Financial Chronicle
Volume 136
respect to the debtor and his property, shall be the same as if a voluntary
petition for adjudication had been filed and a decree of adjudication had
been entered on the day when the debtor's petition was filed.
"(o) No judge or trustee acting under this Act shall change the wages
or working conditions of railroad employees, except in the manner prescribed in the Railroad Labor Act, or as set forth in the memorandum of
agreement entered into in Chicago. Illinois, on January 31 1932, between
• the executives of twenty-one standard labor organizations and the committee of nine authorized to represent Class 1 railroads.
"(p) No judge or trustee acting under this Act shall deny or in any
way question the right of employees on the property under his jurisdiction
to join the labor organization of their choice, and it shall be unlawful for
any judge, trustee, or receiver to interfere in any way with the organizations of employees, or to use the funds of the railroad under his jurisdiction, in maintaining so-called company unions, or to influence or coerce
employees in an effort to induce them to join or remain members of such
company unions.
"(q) No judge, trustee, or receiver acting under this Act shall require
any person seeking employment on the property under his jurisdiction
to sign any contract or agreement promising to join or to refuse to join
a labor organization: and if such contract has been enforced on the property
prior to the property coming under the jurisdiction of said judge, trustee,
or receiver, then the said judge, trustee, or receiver, as soon as the matter
is called to his attention, shall notify the employees by an appropriate
order that said contract has been discarded and is no longer binding on
them in any way.
"(r) The term 'railroad corporation' as used in this Act means any
common carrier by railroad engaged in the transportation of persons or
1625
property in Inter-State commerce, except a street. suburban, or interurban electric railway which is not operated as a part of a general railroad
system of transportation or which does not derive more than 50 per centum
of its operating revenues from the transportation of freight in standard
steam railroad freight equipment.
"(s) In proceedings under this section, claims for personal injuries to
employees of a railroad corporation, and claims of personal representatives
of deceased employees of a railroad corporation arising under State or
Federal laws, shall be preferred claims against the assets of such railroad
corporation in receivership or in reorganization as herein provided, such
claims to be subordinate only to costa of administration of such receivership or reorganization."
Sec. 2. This Act shall take effect and be in force from and after the
date of its approval, and shall apply as fully to debtors, their stockholders
and creditors, whose interest or debts, whether secured or unsecured,
have been acquired or incurred prior to such date, as to debtors, their
stockholders and creditors, whose interest or debts have been acquired
or incurred after such date. Proceedings under section 1 of this Act
may be taken in proceedings in bankruptcy which are pending on the
effective date of this Act.
Sec. 3. In all bankruptcy proceedings the officers and agents in charge
of the bankrupt funds are authorized to deposit the game without limit
as to amount in the postal savings depositories at the prescribed interest
rate in all cases where local banks are unable or unwilling to give the
required security. Such deposit or any portion thereof may be withdrawn as required in the bankruptcy proceedings.
Approved, March 3, 1933.
Text of Emergency Banking Act Passed by Congress.
Below we give the full text of the emergency bank Act,
passed by Congress on March 9 at the instance of President
Roosevelt, and signed by the latter on the same day.
SEVENTY-THIRD CONGRESS. FIRST SESSION.
S. 1.
March 9 1933.
A BILL
To provide relief in the existing National emergency in banking, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That the Congress hereby declares that a serious emergency exists and that it is imperatively necessary
speedily to put into effect remedies of uniform National application.
Title I.
Sec. 1. The actions, regulations, rules, licenses, orders and proclamations heretofore or hereafter taken, promulgated, made or issued by
the President of the United States or the Secretary of the Treasury since
March 4 1933 pursuant to the authority conferred by subdivision (b) of
Section 6 of the Act of Oct. 6 1917 as amended, are hereby approved and
confirmed.
Sec. 2. Subdivision (b) of Section 5 of the Act of Oct. 6 1917 (40 Stat.
L.411), as amended, is hereby amended to read as follows:
"(B) During time of war or during any other period of National emergency declared by the President, the President may, through any agency
that he may designate, or otherwise, investigate, regulate, or prohibit,
under such rules and regulations as he may prescribe, by means of licenses
or otherwise, any transactions in foreign exchange, transfers of credit
between or payments by banking institutions as defined by the President.
and export, hoarding, melting, or earmarking of gold or silver coin or
bullion or currency, by any person within the United States or any place
subject to the jurisdiction thereof; and the President may require any
person engaged in any transaction referred to in this subdivision to furnish,
under oath, complete information relative thereto, including the production of any books of account, contracts, letters or other papers in
connection therewith in the custody or control of such person, either
before or after such transaction is completed. Whoever willfully violates
any of the provisions of this subdivision or of any license, order, rule or
regulation issued thereunder, shall, upon conviction be fined not more
than $10,000. or, if a natural person, may be imprisoned for not more
than ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be Punished
by a like fine, imprisonment, or both. As used in this subdivision, the
term 'person means an individual, partnership, association or corporation.
Sec. 3. Section 11 of the Federal Reserve Act is amended by adding
at the end thereof the following new subsection:
"(N) Whenever, in the judgment of the Secretary of the Treasury,
such action is necessary to protect the currency system of the United
States, the Secretary of the Treasury, in his discretion, may require any
or all individuals, _partnerships, associations and corporations to pay
and deliver to the Treasurer of the United States any or all gold coin,
gold bullion and gold certificates owned by such individuals, partnerships, associations, and corporations. Upon receipt of such gold coin,
gold bullion or gold certificates, the Secretary of the Treasury shall pay
therefor an equivalent amount of any other form of coin or currency coined
or issued under the laws of the United States.
"The Secretary of the Treasury shall pay all costs of the transportation
of such gold bullion, gold certificates, coin or currency, including the
cost of insurance, protection and such other incidental costs as may be
reasonably necessary.
"Any individual, partnership, association or corporation failing to
comply with any requirement of the Secretary of the Treasury made
under this subsection shall be subject to a penalty equal to twice the
value of the gold or gold certificates in respect of which such failure occurred
and such peeshy may be collected by the Secretary of the Treasury by
suit or otherwise."
Sec. 4. In order to provide for the safe and more effective operation
of the National banking system and the Federal Reserve System, to preserve for the people the full benefits of the currency provided for by the
Congress through the National banking system and the Federal Reserve
System, and to relieve Inter-State commerce of the burdens and obstructions resulting from the receipt on an unsound or unsafe basis of deposits
subject to withdrawal by check, during such emergency period as the
President of the United States by proclamation may prescribe. no mian her
bank of the Federal Reserve Syateni shall transact any banking business
except to such extent and subject to such regulations. limitations and
restrictions as may be prescribed by the Secretary of the Treasury, with
the approval of the President.
Any individual, partnership, corporation or association, or any director,
officer or employee thereof, violating any of the provisions of this section
Shall be deemed guilty of a misdemeanor and, upon conviction thereof,
shall be fined not more than $10,000. or. If a natural person, may, in
addition to such fine. be Imprisoned for a term not exceeding ten years.
Each day that any such violation continues shall be deemed a separate
offense.
Title II.
Sec. 201. This title may be cited as the "Bank Conservation Act."
Sec. 202. As used in this title, the term "bank" means (1) any National banking association, and (2) any bank or trust company located
in the District of Columbia and operating under the supervision of the
Comptroller of the Currency; and the term "State" means any State,
Territory, or possession of the United States, and the Canal Zone.
Provision for Appointment of Conservator of Banks Where Necessary to
Conserve Assets.
Sec. 203. Whenever he shall deem it necessary in order to conserve
the assets of any bank for the benefit of the depositors and other creditors
thereof, the Comptroller of the Currency may appoint a conservator
for such bank and require of him such bond and security as the Comptroller of the Currency deems proper. The conservator, under the direction of the Comptroller, shall take possession of the books, records and
assets of every description of such bank, and take such action as may
be necessary to conserve the assets of such bank pending further disposition of its business as provided by law. Such conservator shall have
all the rights. powers and privileges now possessed by or hereafter given
receivers of insolvent National banks and shall be subject to the obligations
and penalties, not inconsistent with the provisions of this title, to which
receivers are now or may hereafter become subject.
During the time that such conservator remains in possession of such
bank, the rights of all parties with respect thereto shall, subject to the
other provisions of this title, be the same as if a receiver had been appointed therefor. All expenses of any such conservatorship shall be paid
out of the assets of such bank and shall be a lien thereon which shall be
prior to any other lien provided by this Act or otherwise. The conservator
shall receive as salary an amount no greater than that paid to employees
of the Federal Government for similar services.
Sec. 204. The Comptroller of the Currency shall cause to be made
such examinations of the affairs of such bank as shall be necessary to
inform him as to the financial condition of such bank, and the examiner
shall make a report thereon to the Comptroller of the Currency at the
earliest practicable date.
Sec. 205. If the Comptroller of the Currency becomes satisfied that
it may safely be done and that it would be in the public interest, in his
discretion he may terminate the conservatorship and permit such bank to
resume the trameoction of its business subject to such terms, conditions,
restrictions and limitations as he may prescribe.
Sec. 206. While such bank is in the hands of the conservator appointed
by the Comptroller of the Currency. the Comptroller may require the conservator to set aside and make available for withdrawal by depositors and
payment to other creditors, on a ratable basis, such amounts as in the
opinion of the Comptroller may safely be used for this purpose: and the
Comptroller may, in his discretion, permit the conservator to receive
deposits, but deposits received while the bank is in the hands of the conservator shall not be subject to any limitation as to payment or withdrawal
and such deposits shall be segregated and shall not be used to liquidate any
Indebtedness of such bank existing at the time that a conservator was
appointed for it, or any subsequent indebtedness incurred for the purpose
of liquidating any indebtedness of such bank existing at the time such
conservator was appointed. Such deposits received while the bank is In
the hands of the conservator shall be kept on hand in cash. Imested in
the direct obligations of the United States, or deposited with a Federal
Reserve Bank, The Federal Reserve banks are hereby authorized to open
and maintain separate deposit accounts for such purpose, or for the purpose
of receiving deposits from State officials in charge of State banks under
similar circumstances.
Re-Organization of Banking Institutions.
See. 207. In any reorganization of any National banking association
under a plan of a kind which, under existing law, requires the consent,. as
the case may be. (a) of depositors and other creditors or (b tiLinw,lipolders
or (c) of both depositors and other creditors and stockholders.such reurganization shall become effeetive only (1) when the Comptroller of the Cur
rency shall be satisfied that the plan of reorganization la fair and equitable
as to all depositors, other creditors and stockhelders and is in the public
interest and shall have approved the plan subject to such conditions,
restrictions and limitations as he may prescribe and (2) when, after reasonable notice of such reorganization, as the case may require. (a) depositors
and other creditors of such hank representing at least 75% in amount of
Its total deposits and other liabilities as shown by the books of the National
Banking Association or tb) stockholders owning at least two-thirds of its
outstanding capital stock as shown by the bcoks of the National Banking
Association or (ci both depositors and other creditors representing at least
75% In amount of the total depcsits and other liabilities and stockholders
owning at least two-thirds of its outstanding capital stock as shown by the
becks of the National Banking Association, shall have consented in writing
1626
Financial Chronicle
to the plan of reorganization: provided, however, that claims of depositors
or other creditors which will be satisfied In full under the provisions of the
plan of reorganization shall not be included among the total deposits and
other liabilities of the National Banking Association in determining the
76% thereof as above provided.
.
When such reorganization becomes effective all books, records and assets
of the National Banking Association shall be disposed of in accordance with
the provisions of the plan, and the affairs of the National Banking Assoelation shall be conducted by Its board of directors in the manner provided
by the plan and under the conditions, restrictions and limitations which
-i,
may have been prescribed by the Comptroller of the Currency.Qi any
reorganization which shall have been approved and shall have become
effective as provided herein, all depositors and other crerillors and stockholders of such National Banking Association, vithether•er_PCCIlley sha,11
laittson 1..v.ALd to such plan of reorganization, shall be fully and in all
.
i
.resPects_anbiect to andifiiiit by its proviSienir:anaTcli- ims Ofiii deiTolitOii
i-o—s-u-etiTplaTait.
and other creditors sitarbe treated as if they
reorgailzatrOp. ---meleilleMISMoolue
Sec. 208. After fifteen days after the affairs of a bank shall have been
turned back to its board of directors by the conservator, either with or
Without a reorganization as provided in Section 207 hereof, the provisions
of Section 206 of this title with respect to the segregation of deposits received a bile it is In the hands of the conservator and with respect to the use
of such deposits to liquidate the indebtedness of such bank shall no longer
be effective:
Provided, that before the conservator shall turn back the affairs Of the
bank to its board of directors he shall cause to be published in a newspaper
published in the city, town or county in which such bank is located, or if
no newspaper is published in such city, town or county, in a newspaper to
be selected by the Comptroller of the Currency published in the State in
which the bank is located, a notice in form approved by the Comptroller,
stating the date on which the affairs of the bank will be returned to its
board of directors and that the said provisions of Section 206 will not be
effective after fifteen days after such date; and on the date of the publication
of such notice the conservator shall immediately send to every person who
Is a depositor in such bank under Section 206 a copy of such notice by
registered mall addressed to the last known address of such person as shown
by the records of the bank, and the conservator shall send similar notice
In like manner to every person making deposit. in such bank under Section
206 after the date of such newspaper publication and before the time when
the affairs of the bank are returned to its directors.
Sec. 209. Conservators appointed pursuant to the provisions of this
title shall be subject to the provisions of and to the penalties prescribed
by Section 5209 of the Revised Statutes (U. S. C., Title 12, Sec. 592): and
Sections 112. 113. 114, 115. 116 and 117 of the criminal code of the United
States (U. S. C., Title 18. Sec 5-202, 203. 204. 205. 206 and 207), In se
far as applicable, are extended to apply to centracts. agreements, proceedInge, dealings. claims and controversies by or with any such conservator
or the Comptroller of the Currency under the provisions of this title.
Sec. 210. Nothing in this title shall be construed to impair in any
manner any power of the President, the Secretary of the Treasury, or the
Comptroller of the Currency or the Federal Reserve Board.
Sec. 211. The Comptroller of the Currency Is hereby authorized and
empowered, with the approval of the Secretary of the Treasury, to prescribe such rules and regulations as he may deem necessary in order to
carry out the provisions of this title. Whoever violates any rule or regulation made pursuant to this section shall be deemed guilty of a misdemeanor;
and, open conviction thereof, shall be fined not more than $5,000, or imprisoned not more than one year, or both.
Title III.
Sec. 301. Notwithstanding any other provision of law, any National
banking association may, with the approval of the Comptroller of the
Currency and by vote of shareholders owning a majority of the stock of
such association, upon not less than five days' notice, given by registered
mall pursuant to action taken by its board of directors, issue preferred
stock In such amount and with such par value as shall be approved by
said Comptroller, and make such amendments to Its articles of association
as may be necessary for this purpose: but, in the case of any newly organized
national banking association which has not yet issued common stock,
the requirement of notice to and vote of shareholders shall not apply No
issue of preferred stock shall be valid until the par value of all stock so
Issued shall be paid in.
Sec. 302 (A) The holders of such preferred stock shall be entitled to
Cumulative dividends at a rate not exceeding 6% per annum, but shall not
be held individually responsible as such holders for any debts, contracts or
engagements of such association and shall not be liable for assessments to
restore impairments in the capital of such association as now provided by
law with reference to holders of common stock. Notwithstanding any
other provision of law, the holders of such preferred stock shall have such
voting rights and such stock shall be subject to retirement in such manner
and on such terms and conditions as may be provided In the articles of
association with the approval of the Comptroller of the Currency.
(B) No dividends shall be declared or paid on common stock until the
cumulative dividends on the preferred stock shall have been paid In full.
and, if the association is placed In voluntary liquidation or a conservator
or a receiver Is appointed therefor, no payments shall be made to the
holders of the common stock until the holders of the preferred stock shall
have been paid In full the par value of such stock plus all accumulated
dividends.
Common Stock Defined.
Sec. 303. The term "common stock," as used In this title, means
stocks of national banking associations other than preferred stock Issued
Under the provisions of this title. The term "capital." as used In provisions of law relating to the capital of national banking associations, shall
mean'the amount of unimpaired common stock plus the amount of preferred
stock outstanding and unimpaired; and the term "capital stock." as used
in Section 12 of the act of March 14 1900, shall mean only the amount of
Common stock outstanding.
Subscriptions by Reconstruction Finance Corporation,
Sec. 304. If in the opinion of the Secretary of the Treasury any national
banking association or any State bank or trust company is in need of funds
for capital purposes either In connection with the organization or reorganization of such association; State bank or trust company or otherwise, he may.
with the approval of the President, request the Reconstruction Finance
Corporation to subscribe for preferred stock In such association. State
bank or trust company,or to make loans secured by such stock as collateral,
and the Reconstruction Finance Corporation may comply with such requests. The Reconstruction Finance Corporation may, with the approval
of the Secretary of the Treasury, and under such rules and regulations as
he may prescribe, sell in the open market or otherwise the whole or any
part of the preferred stock of any national banking association, State
bank or trust company, acquired by the Corporation pursuant to this
section. The amount of notes, bonds, debentures and other such oblige
March 11 1933
Mons which the Reconstruction Finance Corporation Is authorized and
empowered to issue and to have outstanding at any one time, under existing
law, Is hereby increased by an amount sufficient to carry out the provisions
of this section.
Title IV.
Amendment to Federal Reserve Act—Issuance of Notes.
Sec. 401. The sixth paragraph of Section 18 of the Federal Reserve
Act is amended to read as follows:
"Upon the deposit with the Treasurer of the United States (A) of any
direct obligations of the United States or (B) of any notes. drafts bills
of exchange or bankers' acceptances acquired under the provisions of this
Act, any Federal Reserve Bank making such deposit In the manner prescribed by the Secretary of the Traasury shall be entitled to receive from
the Comptroller of the Currency circulating notes in blank, duly regis
tered and countersigned. When such circulating notes are issued against
the security of obligations of the United States. the amount of such &culating notes shall be equal to the face value of the direct obligations of
the United States so deposited as security; and, when issued against the
security of notes. drafts, bills of exchange and bankers' acceptances acquired
under the provisions of this Act, the amount thereof shall be equal to not
more than 90% of the estimated value of such notes, drafts, bills of exchange and bankers' acceptances so deposited as security.
"Such notes shall be the obligations of the Federal Reserve Bank procuring the same,shall be Inform prescribed by the Secretary of the Treasury,
shall be receivable at par in all parts of the United States for the same
purposes as are national bank notes, and shall be redeemable in lawful
money of the United States on presentation at the United States Treasury
or at the bank of issue.
"The Secretary of the Treasury Is authorized and empowered to prescribe regulations governing the issuance, redemption, replacement.
retirement and destruction of such circulating notes and the release and
substitution of security therefor. Such circulating notes shall be subject
to the same tax as Is provided by law for the circulating notes of national
banks secured by 2% bonds of the United States. • No such circulating
notes shall be issued under this paragraph after the President has declared
by proclamation that the emergency recognized by the President by proclamation of March 6 1933 has terminated, unless such circulating notes are
secured by deposits of bonds of the United States bearing the circulation
privilege.
•
Federal
"When required to do so by the Secretary of the Treasury. each
Reserve Agent shall act as agent of the Treasurer of the United States
or of the Comptroller of the Currency, or both, for the performance of
any of the functions which the Treasurer or the Comptroller may be
called upon to perform in carrying our the provisions of this paragraph.
Appropriations available for distinctive paper and printing United States
currency or national bank currency are hereby made available for the
production of the circulating notes of Federal Reserve Banks herein provided; but the United States shall be reimbursed by the Federal Reserve
bank to which such notes are issued, for all expenses necessarily Incurred
In connection with the procuring of such notes and all other expenses InMental to their issue. redemption replacement,retirement and destruction.
Sec. 402. Section 10 (B) of the Federal Reserve Act as amended. Is
further amended to read as follows:
"Sec. 10 (B). In exception and exigent circumstances and when any
member bank has no further eligible and acceptable assets available to
enable it to obtain adequate credit accommodations through rediscounting
at the Federal Reserve Bank or any other method provided by this Act
other than that provided by Section 10 (A), any Federal Reserve Bank,
under rules and regulations prescribed by the Federal Reserve Board,
may make advances to such member bank on Its time or demand notes
secured to the satisfaction of such Federal Reserve Bank. Each such note
shall bear interest at a rate not less than 1% per annum higher than the
highest discount rate in effect at such Federal Reserve Bank on the date
of such note. No advance shall be made under this section after March 3
1934, or after the expiration of such additional period not exceeding one
year as the President may prescribe."
Advances to Individuals, Partnerships or Corporations.
Sec. 403. Section 13 of the Federal Reserve Act as amended,Is amended
by adding at the end thereof the following new paragraph:
"Subject to such limitations, restrictions and regulations as the Federal
Reserve Board may prescribe, any Federal Reserve Bank may make
advances to any individual, partnership or corporation on the promissory
note of such Individual, partnership or corporation secured by direct
obligations of the United States. Such advances shall be made for periods
not exceeding 90 days and shall bear Interest at rates fixed from time to
time by the Federal Reserve Bank,subject to the review and determination
of the Federal Reserve Board."
Title V.
Sec. 501. There is hereby appropriated, out of any money in the
Treasury not otherwise appropriated, the sum of $2,000.000, which shall
be available for expenditure, under the direction of the President and
In his discretion, for any purpose In connection with the carrying out
of this Act.
Sec. 502. The right to alter,amend or repeal this Act Is hereby expressly
reserved. If any provision of this Act, or the application thereof to any
persons or circumstances, is held Invalid, the remainder of the Act, and
shall
the application of such provision to other persons or circumstances,
not be affected thereby.
GEORGE L. HARRISON,
Governor.
"United States Daily" Suspends Publication.
An announcement as follows was made March 6 by the
"United States Daily":
Owing to the economic depression and recent developments In the general
banking situation, the "United States Daily" is unable to continue publication and, therefore, suspends with this issue.
date.
It Is hoped that means may be found to resume publication at a later
In a dispatch from Washington March 6 the New York
"Times" said:
After seven years of existence. the "United States Daily" suspended
publication with Its issue of this morning. The paper was started March 4
Press,
1926. under the presidency of David Lawrence of The Consolidated
organized
who owned a controlling Interest in the $1,000,000 corporation
to launch the publication. .
of the
In a box published every day, carrying the names of the officers
was
paper and other information about It, the following announcement
printed:
complete
"The sole purpose of the 'United States Daily' is to present a
Government of
and comprehensive record of the daily activities of the
Volume 136
Financial Chronicle
the United States in all its branches, legislative, executive and judicial,
and of each of the governments of the 48 States. Believing that such
a daily newspaper, without editorial opinion or comment of its own, would
fill a distinct place in the life of the American people, the following founded
this publication as its sole owners:
"Owen D. Young, Charles Evans Hughes, Edward W. Bok, Miss Belle
Sherwin, Bernard M. Baruch, E. A. Deeds, Clarence H. Mackay, Van S.
Merle-Smith, Frank L. Polk, David Lawrence, John Hays Hammond,
John W. Davis, W. M. Ritter, Joseph S. Frelinghuysen, Mrs. J. Borden
Harriman, Mrs. Leroy Springs, F. Trubee Davison, H. P. Wilson, Victor
Whitlock, C. G. Marshall, Willard Saulsbury, George F. Porter, John W.
Weeks, University of Chicago.
"Ruth Hanna Simms, Julius Rosenwald, Albert D. Luker, Albert
Sprague, Philip H. Gadsden, Frederic W. Allen, James W. Gerard, Jesse H.
1627
Jones, Robert C. Schaffner, Mary Roberts Rinehart, Robert Lansing,
Walter P. Cooke, Miss Anne Morgan, Murray Guggenheim, William B.
Wilson, Samuel Insull, James D. Phelan, Mrs. Eleanor Patterson, Robert
H. Patchin, Jay Jerome Williams, Alan C. Rinehart, John E. Rice, B. F.
Yoakum, the National Institute of Public Administration, Otto H. Kahn,
Samuel S. Fels.
"Walter 0.Teagle, Simon Guggenheim, Mrs. Charles H.Sabin, Breckenridge Long, George F. Rand,Seymour H.Knox,E.T. Meredith, C.Bascom
Stanley
Slemp, Wayne Johnson, Norman H. Davis, Ira C. Copley, Dr.
M. Rinehart, Colonel E. M. House, Walter J. Fahy, John Barrett, Robert
Hugh Grant Straus, Mrs. N. de R. WhiteS. Brookings, James L. Bray,
Institution."
house, T. M. Rodlun, Elmer Schlesinger, the Brookings
As the paper did not appear on Sunday, to-day's final issue contained
D. Roosevelt.
an account of the inauguration of President Franklin
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, March 10 1933.
The banking holiday which ended on the 9th was renewed
indefinitely by President Roosevelt. It is hit that this
action is only the forerunner of legislation which cannot fail
to inure in the end to the advantage of rejuvenated business
throughout the vast ramifications of American trade and
industry. Regardless of the lack of banking facilities a
disposition to carry on and make the best of things is everywhere observable and the courage, cheerfulness and poise
of the American people have been exemplified to a remarkable degree. It is believed that the crisis will result in no
permanent depreciation of the American dollar. The recent
steadiness of commodity prices has of itself done not a little
to brace the morale of general trade. It is believed that the
restoration of banking conveniences and necessities will be
the signal for a better state of trade throughout the United
States and in this spirit the business world faces the future
with hope and confidence.
At the same time the banks, being a necessary part of
business, it follows that their temporary elimination could
not fail to hamper trade. Industries are naturally slower.
The unfilled orders of the United States Steel Corp. dropped
in February 44,444 tons, to a total of only 1,854,200 tons,
the lowest since the corporation began its operations. Flour
production of 90% of the mills reporting was down to 4,792,656 barrels, against 5,019,985 in February last year. Retail
• trade, as a rule, has been restricted as to cash customers,
though some of those with large accounts bought on a fair
scale. Wholesale orders were smaller and cancellations of
purchases and postponement of shipments were common.
Spring buying has been delayed. Textile mills have slowed
down. Drygoods sales, as a rule, have been smaller. The
woolen goods trade is quiet. Although Easter is not many
weeks off the purchases of spring stocks of men's suits and
topcoats have been much smaller than usual. The trade
in silks has been small and silk mills have recently been
producing on a distinctly restricted scale. The output of
rayon yarn has been curtailed in sharp contrast with the
100% production from September to well into February.
Rayon prices have recently declined under sharp competition,
but it is believed that reduction of output will in a few weeks
have a steadying effect. Failures are less numerous, especially outside the Eastern section of the United States.
Hoarders of gold have latterly been redepositing that commodity in increasingly large amounts, fearing the consequences because of the recent attitude of Government
toward a class which has undoubtedly helped to bring on
the present emergency.
In Chicago retail trade made a rather good showing, despite the banking situation. The worst sufferer has been
the trade in women's apparel. Many other brinches of
wholesale trade have also been hit hard, so much so that
salesmen have withdrawn from the road. The sues of
automobiles fell off. Steel output was on a basis pf 15%
and though sheet steel was marked up $1. to $2. it remains
to be seen what buyers will have to say about it. Farming
implements were in fair demand. In St. Louis trade was
dull. The best showing was made by the shoe and chemical
industries. Retail trade was slow. Collections were not
satisfactory. Wholesale business was "spotty". In Philadelphia retail trade was pushed by special sales in anticipation of banking delays and the retail clearance in this way
made a pretty good exhibit, but low prices prevailed and
dollar volume fell below that of a year ago. With the
weather mild, fuel trade fell off and prices weakened, but
the industrial demand for coal apart from the domestic
demand was rather encouraging.
In Boston trade has been unsatisfactory and in New
England generally it has continued to be slow, though the
banking situation in some respects has been better there
than in many other parts of the country. The shoe industry
which has been the bright spot in the situation has been overshadowed somewhat by labor troubles at Lynn and elsewhere.
Leather has been in fair demand. In the clothing trade
there is a lack of encouraging demand for spring goods. The
department stores have complained of slowness of trade.
Wool has been dull. New building was slow. Heavy industries have shown a tendency towards curtailment. In
Cleveland, as everywhere else, banking restrictions have had
an adverse effect on trade, though efforts were being made
through new laws and one plan or another to ease credits
and give business as much help generally as was possible.
Iron and steel output fell off slightly in response to a lessened
demand. Yet the automobile business there showed some
increase. In Kansas City trading has been quiet. Four
small banks have been merged into one, following the merger
of two last week. This has kept the public attention fixed
on the banking situation with a detrimental effect on general
business. In California trade has decreased. In Minneapolis there has been some improvement in retail sales. Car
loadings increased but the flour trade was still quiet as millers
could not hedge on wheat.
Wheat advanced in Winnipeg on heavy buying by Chicago
and after being less active for a few days has latterly sprung
into greater activity again in expectation of inflation of
the currency and higher prices, both at home and abroad.
Moreover, the Western and Southwestern winter wheat belts
have not had the rain or snow that they need. Sooner or
later, if such drouthy conditions continue, they must tell
further on the size of the crop there. It is already estimated at well below that of last year, to say nothing of
that of 1931, the mammoth crop, or indeed of any yield thus
far in the present century. Buying by Chicago, partly, at
least, for long account, seems of late to have increased materially and there is an undercurrent of bullish sentiment
based on the possibility of decreased world's supplies this
year, increased world's demand and in the background the
big increase in the supply of currency in this country.
Meanwhile, export business which was reported early in the
week at Winnipeg by way of the Pacific Coast has latterly
disappeared. In corn, cash business at Chicago ceased on
the 9th. The receipts of corn at primary markets of the
United States have, under the banking restrictions, fallen
off very sharply. Oats and rye at Winnipeg followed for a
time the trend of fluctuations in wheat, but the transactions
have been too small to be of any special interest. Sugar has
advanced sharply on a steady demand and the difficulty of
obtaining supplies. Scrap steel has advanced 25c. per ton
at Pittsburgh, but recently the output of steel has fallen off
noticeably, though some think the rise in scrap may possibly
be the precursor of some improvement in steel on the ground
that scrap is in some sort a kind of barometer of the steel
business. Pig iron has been as dull as ever. In coal,
owing to the mild weather in many parts of the country,
there has been less business. Wool has remained quiet.
Cotton print cloths have been active and firm. Flour has
been quiet, though Western millers have tried to buy heavily
of the Stabilization Board's supply of wheat in order to
hedge against business in flour. The bids were considered
too low and were rejected by the Government Board.
A straw which may be of some significance is a sharp advance in Chicago Board of Trade memberships which sold on
Thursday at $6,000,a rise of $1,500 this week. Negotiations
for further seats are reported pending at as high as $7,500.
Evidently active times on the Board of Trade are anticipated.
1628
Financial Chronicle-
March 11 1933
Cotton Exchange seats have also advanced $1,500 to a price Indexes of Business
Activity of Federal Reserve Bank
of $12,000. The New York Stock Exchange has been closed
of New York for January.
since March 3 and will probably remain so until a day or two
The Federal Reserve Bank of New York, in its March 1
after the New York banks reopen for normal business.
"Monthly Review," states that "during the first half of'
Restrictions on trading when it is resumed, such as was the
February no marked change occurred in general business
rule in 1914, are not generally looked for. Business on the
activity and the distribution of goods." Continuing, theMontreal and Toronto Stock Exchanges and the Standard
bank also said:
Stock and Mining Exchange of Toronto has increased
Department store sales in the Metropolitan area of New York were 22%
materially this week. While the absence of a foreign exbelow the corresponding period of a year ago, representing a slightly smaller
change market has made the comparison of the prices of decline than in January, but approximately the same reduction as was
stocks listed both in New York and in foreign markets subject shown in immediately preceding months. The movement of merchandise
and miscellaneous freight over the railroads was smaller than in January.
to great inaccuracy, as near as can be determined. Ameri- in contrast to a usual seasonal increase, but a fairly substantial increase was.
can stocks are selling abroad at higher prices than the close shown in loadings of bulk freight, principally as a result of larger coal shipments. The production of electric power remained at
here on March 3. There has been little or no evidence of a and the number of business failures was smaller than in the January level.
the previous month,
"gutter market" such as existed in 1914. The feeling in Wall in accordance with the usual tendency.
This bank's Indexes of business activity for January showed no consistent
Street is distinctly one of hope and belief that the crisis of movement from
December. Increases occurred in the rail movement of'
the long depression has been met and is being overcome.
merchandise and miscellaneous freight, sales of chain stores other
than
Manchester, N. H., wired on March 7th that the 600 grocery chains, and sales of new life insurance. Indexes relating to foreign,
trade, the volume of check transactions, and business failures showed
little
workers of the Amoskeag Co. will be paid in cash this week. change, while declines were
recorded in the movement
As to the weather on the 6th New York temperatures of department stores, and chain store grocery sales. of bulk freight, sales
were 23 to 44 degrees and cloudy; Chicago had 30 to 40 de- (Adjusted for seasonal variations, for usual year to year growth,
and where necessarytor price changes)
grees; St. Louis, 28 to 44 degrees; St. Paul, 30 to 34 degrees;
Winnipeg, 14 to 34 degrees; Kansas City, 28 to 38 degrees;
Jan. 1932. Nov. 1932. Dec. 1032. Jan, 1933.
Cincinnati, 26 to 58 degrees; Cleveland, 26 to 52 degrees,
Primary Distribution
Boston, 14 to 34 degrees and Milwaukee, 32 to 38 degrees. Car loadings, merchandise & misc.
65
53
53
55
55
53
Galveston had 3% inches of rain and New Orleans 23(. Car loadings, other
58
50
Exports
51
43
43
44p
The country as a rule was cloudy.
Imports
67
58
57
56p
Waterways traffic
45
42
40
47
On the 7th taking the country as a whole it was mild. Wholesale trade
87
75
85
-Boston had 32 to 42 degrees; Chicago, 36 to 38 degrees;
Distribution to Consumer
Department store sales, 2d Dist
82
72
Cincinnati, 40 to 44 degrees; Cleveland, 36 to 44 degrees; Chain
68
64p
grocery sales
77
64
64
62
Denver, 36 to 62 degrees; Detroit, 32 to 42 degrees; Kansas Other chain store sales
88
70
67
779'
Mall order
74
62
61
65
City, 36 to 48 degrees; Los Angeles, 56 to 78 degrees; Mil- Advertising house sales
66
54
52
51
Gasoline consumption
82
70
63
waukee,34to 40 degrees; St.Paul,28 to42 degrees; Montreal, Passenger automobile registrations.
__
44
23p
319
-16 to 28 degrees; New York, 35 to 50 degrees; Omaha,32 to
General Business Activity
40 degrees; Philadelphia, 36 to 54 degrees; Phoenix, 48 to Bank debits, outside of N.Y.City_
73
54
58
5817
,
New
67
42
53
509.
78 degrees; Pittsburgh, 44 to 48 degrees; Portland, Me., Bank debits,bank York Cityoutside
Velocity of
deposits,
New York City
of
90
67
26 to 36 degrees; Portland, Ore., 44 to 52 degrees; Salt Lake Velocity of bank deposits,
70
73
N.Y.C.
73
39
48
44
City, 28 to 52 degrees; San Diego, 50 to 72 degrees; San 3hares sold on N. Y. Stock Each...
96
53
57
49
Life insurance
108
82
77
80p
Francisco, 50 to 60 degrees; Seattle, 40 to 50 degrees; Spo- Electric power paid for
75
68
68p
669'
70
63
62
61
kane, 36 to 46 degrees; St. Louis, 42 to 48 degrees; New York Employment in the United States
EltisIness failures
123
95
99
100
Building
had a severe rainfall which lasted most of the day and night gew contracts
25
30
23
25
corporations formed In New
accompanied by a heavy fog.
York State.
83
79
73
81
teal estate transfers
53
40
44
_
.
Here there was some rain on the 8th with temperatures
leneral price level*
138
130
128
of 41 to 52. Boston had over 2 inches and 38 to 50 in tem- 1omposite index
127
194
of wages
177
174p
173p
perature. In Chicago it was 34 to 44, in Kansas City 38 to 'oat of living*_r
1447
132r
132r
_
48, in Cleveland 30 to 46, in Portland, Ore., 30 to 42 with
r Preliminary. r Revised. •1913 average equals 100.
2% inches of rain, in Cincinnati 34 to 54, in Winnipeg zero,
in Philadelphia 46 to 54. On the 9th there were snow flurries
here early but in the main it was pleasant and the temperatures Loading of Railroad Revenue Freight Continues on a
were 35 to 46. It was colder at the West. Chicago had 18
Reduced Scale.
to 24, Kansas City 26 to 32, Minneapolis zero to 6 above,
Loading of revenue freight for the week ended on Feb. 25
Montreal 26 to 32, Milwaukee 10 to 18, Philadelphia 40 to totaled 459,079 cars, the car service division of
the American
52, Boston 38 to 44.
To-day it was colder here with the temperature 20 to 25 Railway Association announced on March 6. Due to the
degrees and the forecast pointed to continued cold to-night observance of Washington's Birthday, this was a decrease
and fair to-morrow. Overnight Boston was 22 to A, Port- of 55,311 cars below the preceding week. The total for the
land, Me., 20 to 44, Chicago 6 to 24, Cincinnati 14 to 38, week of Feb. 25 was also a reduction of 76,419 cars below
Cleveland 10 to 26, Detroit 8 to 22, Milwaukee 2 to 18, the corresponding week in 1932 and 222,142 cars
under the
Kansas City 14 to 32, Los Angeles 50 to 70, Portland, Ore., same
week in 1931, which weeks also contained holidays,
38 to 50, San Francisco 52 to 66, Seattle 36 to 50, Montreal
Details are outlined as follows:
4 to 32 and Winnipeg 10 below zero to 2 above.
Wholesale Price Index of United States Department
of Labor Decreased Slightly During Week Ended
March 4.
The Bureau of Labor Statistics of the U. S. Department of
Labor announces that its index number of wholcoale price
for the week ending Mar. 4 stands at 59.6 as compared with
59.7 for the week ending Feb. 25, showing a decrease of
approximately .2 of 1%. Continuing, the Bureau said:
These Index numbers are derived from price quotations of 784 commodities, weighted according to the Importance of each commodity and
based on average prices for the year 1926 as 100.0.
The accompanying statement shows the index numbers of groups
of
commodities for the weeks ending Feb. 4, 11, 18, 25, and Mar. 4 1933.
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEicii OF FEB,4, jj,
18, 25, AND MAR.41933.
(1926=100.0.)
Week Ending
Feb. 4. Feb. 11. Feb.18. Feb. 25. Mar. 4,
All commodities
Farm products
Foods
Hides and leather products
Textile products
Fuel and lighting
Metals and metal products
Building materials
Chemicals and drugs
Housefurnishing goods
Miscellaneous
60.0
40.2
53.6
68.3
51.4
64.7
78.1
70.0
71.8
72.8
60.8
60.2
41.2
54.4
68.1
51.0
64.7
77.9
69.6
71.4
72.7
60.6
60.1
41.9
54.3
67.9
51.0
64.4
77.6
69.6
71.4
72.7
59.7
59.7
40.8
53.7
67.6
50.7
64.3
77.4
09.9
71.3
72.7
59.6
59.5
40.6
53.4
67.6
50.6
64.4
77.4
70.1
71.3
72.7
59.6
Miscellaneous freight loading for the week of Feb. 25 totaled 150,628
cars, a decrease of 2,449 cars below the preceding week, 27,500 cars under
the corresponding week in 1932 and 98,706 cars under the same week in 1931.
Loading of merchandise less than carload lot freight totaled 143,390 cars.
a decrease of 15,407 cars below the preceding week, 26,343 cars below the
corresponding week last year and 55,179 cars under the same week two years
ago.
Grain and grain loading products loading for the week totaled 28,31R
cars, 2,269 cars above the preceding week, but 4,308 cars below the corresponding week last year and 12.731 cars below the same week in 1931.
In the Western districts alone, grain and grain products loading for the week
ended on Feb.25 totaled 17,886 cars,a decrease of 1.165 cars below the same
week last year.
Forest products loading totaled 14,140 cars, 113 cars above the preceding
week, but 5,500 cars under the same week in 1932 and 19,073 cars below
the corresponding week in 1931.
Ore loading amounted to 1.689 cars, a decrease of 511 cars below the week
before, 1,144 cars below the corresponding week in 1932 and 4,041 cars
under the same week in 1931.
Coal loading amounted to 101.641 cars, a decrease of 35,905 cars below
the preceding week, 6,562 cars below the corresponding week in 1932, and
23,868 cars below the same week in 1931.
Coke loading amounted to 4,850 cars, 2,339 cars below the preceding
week, 1,109 cars below the same week last year, and 2,932 cars below the
same week two years ago.
Live stock loading amounted to 14,422 cars, a decrease of 1,082 cars.
below the preceding week. 3.953 cars below the same week last year and
5.612 cars below the same week two years ago. In the Western districts
alone, loading of live stock for the week ended on Feb. 25 totaled 11,241
cars, a decrease of 3,160 cars compared with the same week last year.
All districts except the Pocahontas, which showed a small increase, reported reductions in the total loading of all commodities compared with the
same week in 1932 while all reported decreases compared with 1931.
Loading of revenue freight in 1933 compared with the two previous
years follows:
1629
Financial Chronicle
Volume 136
1933.
Four weeks In January
Week ended Feb. 4
Week ended Feb. 11
Week ended Feb. 18
Week ended Feb. 25
1932.
1931.
1,910,496
483,192
501,320
514,390
459,079
2,873,211
719,053
720,689
713,156
681,221
3.668.477
Total
2,266,771
573,923
561,535
572,265
535,498
4.509.992
5.707.330
The foregoing, as noted, covers total loadings by the railroads of the United States for the week ended Feb. 25. In
the table below we undertake to show also the loadings for
the separate roads and systems. It should be understood,
however, that in this case the figures are a week behind those
of the general totals-that is, are for the week ended Feb. 18.
During the latter period a total of 32 roads showed increases
over the corresponding week last year, the most important
of which were the Chesapeake & Ohio By., Louisville &
Nashville RR., Norfolk & Western By., Lehigh Valley RR.
and Great Northern By.:
-WEEK ENDED FEB. 18.
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)
Total Revenue
Freight Loaded.
Railroads.
1933.
Grand total Eastern District
Allegheny DistrictBaltimore & Ohio
Bessemer & Lake Erie
Buffalo Creek & Gauley
Central RR. of New Jersey....
Cornwall
Cumberland & Pennsylvania...
Ligonier Valley
Long Island
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
Total
Pocahontas DistrictChesapeake & Ohio
Norfolk & Western
Norfolk & Portsmouth Belt Line
Virginian
280
4,200
8,572
1,849
2,007
10,427
819
271
5,009
9,582
2,379
2,398
11,696
941
29,147
33,670
28,154
32,276
5.987
7,605
10,593
146
1,497
7.975
.1,780
17,477
2,159
336
221
4,399
8,986
11,309
149
1,502
7,335
1,733
19,237
1,892
401
379
6,600
9,567
14,076
178
1,805
9,747
2,222
26,026
1.711
507
489
5,583
4,763
12,567
1.588
768
6,090
21
24,615
1,800
20
196
6,392
5,369
12,141
1,654
831
6,196
25
24,793
1,713
22
233
57,322
72,928
58,011
59,369
408
1,454
7,578
18
176
203
1,087
2,865
5,266
3,048
3,728
4,110
2,396
1,117
4,586
2,943
587
1,580
8,813
65
259
234
1,237
2,635
6.053
3,605
4,380
4.105
3.168
1,051
5,416
2,567
543
1,897
9,582
83
335
191
2,119
3,956
7,284
4,963
5,002
5,000
5,187
1,305
6,222
3,057
1.020
1,714
12.216
62
78
3.058
922
6,258
8,361
139
8,438
4,843
3,960
569
7,168
1.744
1,036
1,717
10,045
98
73
2,234
1,021
5,645
8,359
177
7.512
3,764
4,203
641
6,567
2.185
45,754
56,726
60,550
55,277
132,223
163,324
146.715
146,922
22,266
677
.222
5,055
1
305
241
895
48,607
11,342
2,631
56
2,503
26,535
860
134
6,330
55
345
228
1,150
58,215
12,420
4.534
68
2,937
33,179
1,555
195
8,307
4
376
185
1,326
74.413
16,142
7.621
45
3,319
12,569
711
5
8,923
38
17
10
3,176
29.417
12,160
536
1
3,343
12,287
824
4
10,070
50
6
14
2.913
32,996
15,990
860
94,801
Total
2,453
3,785
10,127
769
3.421
12,511
604
120,815
Group C:
&DU Arbor
Chicago Ind. & Louisville
Cleve. Cin. Chic. & St. Louis
Central Indiana
Detroit & Mackinac
Detroit & Toledo Shore Line_..
Detroit Toledo & Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis_
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia_ _
Wabash
Wheeling & Lake Erie
2,033
3,312
8,542
648
2,755
11,298
559
113,811
146,667
70,906
79,550
or
--
g W
20,750
16,393
648
3,463
17,333
14,230
1,159
3,299
20,611
17,342
1,463
3,206
6,110
3,212
903
461
5,027
3,316
1,152
317
36,021
42,622
10,686
9,812
7,804
727
331
118
40
1,416
.452
248
6,165
16,876
145
8,528
924
339
156
43
1,317
525
368
7,268
18,303
180
12,253
1,223
544
162
92
1,806
578
438
9,211
23,071
207
3,957
1,309
756
368
86
983
700
3,099
3,051
10,282
653
4,039
1.102
790
316
79
921
722
3.716
3.103
9,726
851
37,951
49,585
25,244
25,365
-
Moody's Daily Index of Staple Commodity Prices
Steadies After Rapid Advance.
Based partly on unofficial but actual transactions in outside cash markets, Moody's Daily Index of Staple Commodity
Prices for Tuesday, Mar. 7, registered an advance to 87.1
from 81.9 on the previous Friday. The Index was not compiled for Saturday and Monday, as most markets were completely disorganized, but commencing with Tuesday operations in cash markets were more normal. As the spot quotations of the various commodity exchanges have been
suspended, comparable values based on actual sales and
definite bids and offers in cash markets were used instead,
together with those official prices, such as for the metals and
for hogs, which wore still available.
1933.
Group R:
Alabama Tenn.& Northern__ - _
A Slants Birmingham & Coast._
Atl.& W.P.-Weet.RR.of Ala
Central of Georgia
Columbus& GreenvUle
Florida East Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Macon Dublin & Savannah....
Mississippi Central
Mobile & Ohio_
Nashville Chatt. & St. LouisNew Orleans-Great Northern
Tennessee Central
1932.
1931.
195
556
493
.2,701
170
1,098
688
235
610
17,250
17.311
114
147
1,530
2,278
418
309
247
630
582
3,145
231
1,126
687
288
729
17,939
15,478
110
140
1,791
2,509
615
449
202
823
771
3,997
274
1,116
1,052
423
761
22,014
20,309
130
200
2,356
3,326
666
646
1933.
127
588
874
1,908
165
575
1,016
307
549
8,618
2,856
438
215
1.161
1,921
272
637
1933.
143
751
810
1,795
125
467
1,124
289
642
7,331
3,333
338
199
963
1,803
274
508
46,103
46,696
59,066
22,227
20,897
Grand total Southern District
80,425
84,647
108,651
47.471
46.262
Northwestern District
Belt Ky. of Chicago
Chicago & North Western
Chicago Great Western
Chic. Milw.St.Paul & PacifieChic. St. Paul Minn.& Omaha_
Duluth Miseabe & Northern.-Duluth South Shore & Atlantic_
Elgin Joliet & Eastern
Ft. Dodge Dee M.& Southern
Great Northern
Green Bay & Western
Minneapolis & St. Louis
Minn. St. Paul & S. S. Marie..
Northern Pacific
Spokane Portland & Seattle_ -
659
13,650
1,843
15,607
3,168
467
458
2,730
246
7,987
541
1,556
4,427
7,072
580
968
13,926
2,280
17,704
3,237
497
451
3,288
230
7,809
535
1,730
4,755
8,190
861
1,327
19,383
2,972
22,117
4,611
799
913
5,728
345
9,787
594
2,493
6,174
9,840
974
1.445
8,280
2.238
6,305
2,243
87
371
4.219
158
1,444
334
1,428
1,472
1.661
552
1,208
7,644
1,947
6,289
2,474
8
3
311
4,163
145
1.577
360
1,411
1,639
1,873
907
59,991
66,461
88.057
32,237
32,032
16,820
2,744
184
12,858
9,967
2,851
1,054
2,564
571
1,215
305
69
9,724
225
314
10,010
1,019
854
21,638
3,082
147
15,872
13,878
2,687
1,086
2,285
443
1,434
478
88
12,738
256
325
13,263
729
1,081
22,227
3,643
254
20,339
16,201
2,891
1,131
2,767
246
1,207
607
123
17,333
316
280
14,087
412
1,386
3,767
1.758
32
5,594
6,135
1,893
709
1,353
5
813
175
43
2,655
235
702
4,993
7
934
3,824
1,871
30
4,855
6,655
1,831
842
1,655
9
832
270
56
3,183
222
632
5,086
7
1.198
73,348
91,510
105,450
31,803
33.058
117
148
216
1,553
212
2,675
136
1,361
1,330
417
832
51
4,322
12,204
45
107
7,107
1,778
337
4,266
3,177
1.342
23
177
151
208
1,907
177
1,597
167
1,466
924
449
650
50
4.750
14,088
44
109
7,721
2,189
601
5,181
3.271
1.685
30
182
241
240
2,267
254
2,601
284
1,842
1.446
305
697
73
4,816
17,545
54
94
9,112
2.299
900
6,492
4,641
1,974
26
2,756
358
143
719
35
1,258
754
1,304
706
518
141
282
1.965
6,254
33
131
2,753
1,376
176
2,504
2,479
2,067
29
2,345
483
98
995
67
2,137
655
1.320
1,397
345
195
393
2,162
6,873
27
90
2,814
1,317
233
2.516
3,288
2,177
30
43.756
47,592
58,385
28,741
31,956
Total
Total
Central Western District
Atch. Top.& Santa Fe System_
Alton
Bingham & Garfield
Chicago Burlington & Quincy
Chicago Rock Island & Pacific
Chicago & Eastern Illinois
Colorado & Southern
Denver & Rio Grande Western_
Denver & Salt Lake
Fort Worth di Denver City...
Northwestern Pacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
Toledo Peoria & Western
Union Pacific System
Utah
Western Pacific
Total
34,322
Southern DistrictGroup A:
Atlanta Coast Line
Clinchfield
Charleston & Western Carolina_
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont & Northern
Richmond Frederick. & Potom.
Seaboard Air Line
Southern System
Winston-Salem Southbound
Total Loads Received
from Connections.
Total Revenue
Freight Loaded.
3,536
41,254
Total
Railroads.
1932.
40,983
Total
1933.
55,776
Group B:
Delaware & Hudson
Delaware Lackawanna & West_
Erie
Lehigh & Hudson River
Lehigh & New England
Lehigh Valley
Montour
New York Central
New York Ontario & WesternPittsburgh & Shawmut
Pitts.Shawmut &Northern....
1931.
24,056
Total
1932.
1,695
2,598
6,761
537
2.474
9,523
468
Eastern District
Group A:
Bangor & Aroostook
Boston & Albany
Boston Si Maine
Central Vermont
Maine Central
New York N.H.& Hartford
Rutland
.
Total
--
Total Loads Received
from Connections.
Southwestern District
Alton & Southern
Burlington Rock Island
Fort Smith & Western
Gulf Coast Lines
Houston & Brazos Valley
Intemational-Great Northern
Kansas Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Litchfield & Madison
Midland Valley
Missouri & North Arkansas....
Missouri
-Kansas
-Texas LinesMissouri Pacific
Natchez & Southern
Quanah Acme & Pacific
St. Louis-San Francisco
St. Louis Southwestern
San Antonio Uvalde & Gulf
Southern Pacific in Texas & La_
Texas & Pacific
Terminal RR. Assn. of St.Louls
Weatherford Min.Wells & N.W.
Total
After a temporary reaction on Thursday, the Index closed
the week at 87.6, the highest value since the middle of
November, the increase for the week being approximately
7%. As this advance was really started on Friday of last
week, the increase over the Index of last Thursday, 80.1, a
figure more representative of recent values, was 9.4%.
Individual commodities have behaved somewhaterratically,
some of the more speculative ones advancing sharply at first
and then reacting, but at the close every one of the fifteen
commodities showed at least a nominal increase in price.
Even copper,lead, and steel scrap, which had been stationary
for months, advanced their quotations appreciably. Cotton,
wheat, and hides were between them responsible for half the
advance in the weighted index, the remaining staples making
fairly equal contributions to the other half.
•
1630
Financial Chronicle
March 11 1933
The movement of the Index for each day of the past week,
with comparisons, is shown below:
advance in the United States carried No. 2 red to 6934c. last week Friday
at New York, from 67% the Tuesday previous, with a further advance of
similar proportions probably representing the situation on Tuesday, Mar. 7.
Sat.
Mar. 41Insufficient quoWeek ago Fri. Mar. 3
81.9
Refined sugar was advanced Tuesday 0.10 and 0.20c., respectively, by two
Mon. Misr. 6itations available
2 wks. ago Fri. Feb. 24
80.2
refiners, from a previous price of 3.90c. a pound. Spot coffee was quoted
Tues. Mar. 7
87.1 Year ago
_Mar. 12
97.7
Wed. Mar. 8
at a nominal
87.2
1932-33 Range.
for Santos No. 4 Tuesday, against 9-934 the preThurs, Mar.
978.7 ceding Friday, Rio, however, being little
86.2 Low
Feb. 4 1933
changed.
Fri.
Mar. 10
87.6 High
Sept. 6 1932
103.9
The future course of prices depends on the outcome of the present crisis.
There is little in the position of the commodities themselves to justify an
Wholesale Commodity Prices Slightly Lower During advance. A relapse of prices to pre-crisis levels is therefore a probable
immediate cost of the prompt and
banking situation.
Week Ended March 4 According to National Fer- Deliberate inflation, on the other effective facing of thefatal dallying with
hand, or the equally
the crisis, would undoubtedly cause a continuation of the present advance
tilizer Association.
to unpredictable levels. That higher
Excepting the phenomenal rise in commodity prices just denies; but even more indispensable is prices are urgently needed no one
confidence, and the road to confibefore the close of the markets late Friday (March 3), the dence is hardly through inflation. If the present crisis is met with courage
and intelligence by the authorities, there is reason to look for a recovery of
general,level of commodity prices was lower during the very confidence that
will react upon both business and consumption to
latest;week. The index of the National Fertilizer Associa- about the revival of demand so necessary as a basis for higher prices. bring
tion showed a loss of two points for the week ended March 4.
There were no quotations for Saturday (March 4) and the Weekly Production of Electricity Again Shows a
prices shown in the index are for the most part Thursday's
Falling Off.
(March 2) quotations. The unusual upturns in Friday's
According to the Edison Electric Institute, the production
(March 3) market are therefore not incorporated in this of electricity by the electric light and power industry of the
week's computation. The latest number is 55.8. For the United States during the week ended March 4 1933 was
preceding week it was 56.0, a month ago it stood at 56.0 1,422,875,000 kwh., compared with 1,425,511,000 kwh. in
while a year ago it was 62.6. (The three-year average 1926- the preceding week and 1,519,679,000 kwh. in the corre1928 equals 100.) The Association also reported as follows sponding period in 1932. The percentage decrease as
under date of March 6:
compared with last year was 6.4%, as against 5.7% for the
During the week six of the 14 groups were active. Only one advanced
previous week. The Institute's statement follows:
and
five declined. Grains, feeds and livestock advanced four points. The
declining groups were foods, textiles, metals, fats and oils and fertilizer
materials. Excepting fats and oils and foods the declining groups showed
only small losses.
Among the individual commodities 27 declined during the latest week
while 17 advanced. During the preceding week there were 24 declines and
18 advances. Two weeks ago there were 35 price losses and 14 price gains.
Important commodities that advanced during the latest week were cotton,
lard, eggs, ham, flour, potatoes. hogs, feedstuffs, zinc, tin and rubber.
Declining commoditions included cotton yarns, wool, silk, butter, applies,
corn, wheat, silver and coffee.
The index number and comparative weights for each of the 14 groups
listed in the index are shown in the table below:
WEEKLY WHOLESALE PRICE INDEX
-BASED ON 476 COMMODITY
PRICES (1926-1928=100).
.w&comomonamw
W4..;',Obob,CAbia
Per Cent
Each Group
Bears to the
Total Index.
Latest
Week
Mar. 4
1933.
Month
Ago.
Year
Ago.
53.9
52.8
37.7
41.6
59.1
85.3
71.4
66.8
76.6
38.0
87.3
60.5
65.0
91.7
54.6
52.8
37.5
41.7
59.1
85.3
71.4
66.9
76.6
40.2
87.3
60.6
65.0
91.7
54.0
53.3
36.6
41.8
60.3
86.9
71.4
66.8
77.3
38.3
87.3
60.6
65.3
91.7
64.3
57.3
47.7
49.9
62.9
89.2
72.7
71.1
81.4
46.4
88.8
69.2
76.9
92.7
55.8
Group.
Pre
ceding
Week.
56.0
56.0
62.6
Foods
Fuel
Grains, feeds and livestock
Textiles
Miscellaneous commodities
Automobiles
Building materials
Metals
House-furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizer
Agricultural implements
100.0
All groups combined
Advance of Annalist Weekly Wholesale Price Index
Reflects Inflation Prospects.
With a gain of 0.6 points, the Annalist Weekly Index of
Wholesale Commodity Prices advanced to 80.4 on Friday,
Mar. 3 (the latest date for which full quotations are available), from 79.8 (revised) on Tuesday, Feb. 28. In noting
this, the "Annalist" continues:
Higher prices for cotton, wheat, corn and the other grains, flour, steers
and hogs accounted for the rise. A much sharper advance would undoubtedly have been recorded could the index have been computed as of Tuesday,
Mar. 7.
THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
(Unadjusted for Seasonal Variation)(1913=100)
*Mar. 3 1933. Feb. 28 1933. Mar.8 1932.
61.8
76.1
84.3
94.3
x64.1
78.2
104.3
121.8
93.8
96.2
106.5
108.3
95.2
96.1
68.0
84.2
An ndsmrnntinlew
Rn 4
79.8
o18
•Latest date for which all quotations are available
x Revised
The national banking moratorium completely dominated the commodities
during the week. For several days prior to its declaration, the spread of
State banking holidays and the growing acuteness of the financial situation
had been reflected in the stiffening of the markets. Increased buying
came especially from speculators hoping for an advance through currency
inflation, from outside interests seeking a safer repository for funds and
from other sources fearing an actual shortage of goods. Additional support
In the futures markets reflected heavy covering by shorts, in anticipation
of higher prices. The stability of The "AnnalLst" index, noted in this
column last week, was therefore not so much a cause for encouragement
as a warning.
With the closing of the markets Saturday, official quotations have ceased
to be generally available, but unofficial prices indicate a further sharp
advance. The Chicago hog average was up to $4.28 on Tuesday, Mar. 7,
from $3.43 the Tuesday previous, and the Chicago choice heavy steer
average to $6.62, from $6.12. An advance of 20 points or more since
Friday, Mar. 3, was indicated Tuesday for spot cotton, which had sold
on the earlier date at 6.35 at New York. Gains of 3 to 4c. in wheat for
the week ended Tuesday were reported by the Winnipeg exchange; the
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
e
63.1
84.5
64.1
104.3
93.8
106.5
95.2
68.1
PER CENT CHANGES.
Seek End. Week End.
Var. 4 1933. Feb. 25 1933,
Major Geographic Divisions.
Atlantic Seaboard
New England (alone)
Central Industrial
Pacific Coast
-5.2
-7.1
-9.6
-5.3
-4.1
-5.5
-9.4
--5.4
Total United States
-6.4
-5.7
Arranged in tabular form, the output in kilowatt hours of
the light and power companies for recent weeks and by
months for the year 1932 is as follows:
Week ofJan. 14
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Mar. 4
Week of-
1933.
1,495,116,000 Jan. 16
1,484.089,000 Jan. 23
1,469,636,000 Jan. 30
1,454,913,000 Feb. 6
1,482,509,000 Feb 13
1,469,732,000 Feb 20
1,425,511,000 Feb 27
1,422.875.000 Mar. 5
1932.
1931.
1933
Under
1932.
1,716,822,000
1,712,786,000
1,687,160,000
1,679,016,000
1,683,712,000
1,680,029,000
1,633,353,000
1.684.125.000
-6.7%
-7.1%
-7.5%
-8.4%
-6.1%
-4.9%
-5.7%
-6.441,
Week of-
1,602,482 000 Jan, 17
1.598,201 000 Jan. 24
1,588,967 000 Jan. 31
1,588,853 000 Feb. 7
1,578.817 000 Feb. 14
1,545,459 000 Feb. 21
1,512,158,000 Feb. 28
1,519.679.000 Mar. 7
Mourns-
1932.
1931.
1930.
1929.
1932
Under
1931.
January __-February --March
April
May
June
July
August
September
October
November
December
7,014,066,000
6,518,245,000
6,781,347,000
6,303,425,000
6,212,090,000
6.130,077,000
6,112,175,000
6,310,667,000
6,317,733.000
6,633,865,000
6,507,804,000
6,638,424,000
7,439,888,000
6,705,564,000
7,381,004,000
7,193,691,000
7,183,341,000
7,070,729,000
7,286,576,000
7,166,086,000
7,099,421,000
7,331,380,000
6,971,644,000
7,288,025,000
8,021,749,000
7,066,788.000
7,580,335,000
7,416,191,000
7,494,807,000
7,239,697,000
7,363,730,000
7,391,196,000
7,337,106,000
7,718,787,000
7,270,112,000
7,566,601,000
7,585,334,000
6,850,855,000
7,380,263,000
7,285,350,000
7,486,635,000
7,220,279,000
7,484,727,000
7,772,878,000
7,523,395,000
8,133,485,000
7,681,822,000
7.871,121,000
5.7%
a6.1%
8.2%
12.4%
13.5%
13.3%
16.1%
11.9%
11.0%
9.5%
6.7%
8.9%
77,442,112,000 86,063,969,000 89,467,099,000 90.277,153,000 10.0%
Total
a Change computed on basis of average daily reports.
-The monthly figures shown above are based on reports covering appro3dNote.
mately 92% of the electric light and power industry and the weekly figures are
based on about 70%.
January Electric Output 8% Below Same Month
Last Year.
According to the Department of the Interior, Geological
Survey, production of electricity for public use in the United
States during the month of January 1933 amounted to
6,908,858,000 kwh., as compared with 7,134,714,000 kwh.
in the previous month and 7,542,624,000 kwh. in the corresponding month last year, or a decline of 8%, the same
as for the month of December 1932. Of the total output
for January of this year there were produced by water
power 2,917,921,000 kwh. and by fuels 3,990,937,000 kwh.
The Survey's statement follows:
PRODUCTION OF ELECTRICITY FOR PUBLIC USE IN THE UNITED
STATES (IN KILOWATT HOURS).
Change in Output
from Previous Year.
Total.
Marion.
Nov. 1932.
Dec. 1932.
Jan. 1933. Dee. '32. Jan. '33.
New England
504,279.000 501,447,000 487,151,000 -9%
Middle Atlantic
1,896.487.000 2,069,187,000 1,928,209,000 -6%
East North Central_ 1,525,410,000 1,588,354,000 1,503,526,000 -9%
West North Central_ 431,510,000 464,151,000 495.793,000 -14%
South*Atlantic
858,944,000 804,465,000 854,369,000 -3%
East South Central. 314,618,000 281,111,000 260,831,000 -11%
West South Central_ 339,593,000 323,471,000 285,330,000 -9%
Mountain
193,826,000 203,143.000 197,124,000 -20%
Pacific
879,174.000 899,385,000 896,525,000 -9%
Total for U. S.__ 6,943,841.000 7,134,714,000 6,908,858,000
-9%
-6%
-13%
-4%
-4%
-16%
-15%
-16%
-5%
-8%
-8%
The daily production of electricity for public use in January, 1933, was
222,900,000 kwh., about 3% less than for December, 1932. The normal
change from December to January is a very small increase.
Financial Chrunicle
Volume 136
The average daily production of electricity by the use of water power in
January was 6% greater than In December.
TOTAL MONTHLY PRODUCTION OF ELECTRICITY BY PUBLIC
UTILITY POWER PLANTS IN 1931 AND 1932.
Produced by
Water Power.
1931.
Kw. Hours.
January..._ _
February — March
April
May
June
July
AllIfUst
September..
October
November
December.-Total
.
1932.
Kw. Hours,
1931
Under
1930.
1932
Under
1931.
1931.
1932.
7,956,019,000
7.169,815,000
7,887.713.000
7.655,472.000
7.645.160.000
7,528,592,000
7,771,992.000
7,629,920,000
7.540,377.000
7,764.889,000
7.406,165,000
7,773,286,000
7,542,624,000
7.002.151,000
7,301,976,000
6.778,652,000
6.635,475,000
6,548,831,000
6,530,706.000
6,742,988,000
6.734,578,000
7.054.302.000
6.93.841.o00
7,134.714,000
8%
6%
4%
5%
5%
3%
2%
3%
3%
5%
4%
4%
5%
a6%
7%
11%
13%
13%
b16%
12%
11%
9%
6%
8%
30%
30%
34%
41%
41%
38I7
354
32%
29%
27%
28%
35%
41%
42%
42%
46%
45%
41%
41%
38%
36%
4%
934%
33%
41%
1932.
1933.
91,729,390,00082,951,000,000
1932
Kw. Hours,
1933
Kw, Hours.
l3''' 1932
Under
Under
1931.
1932,
39%
41%
39%
429'.,
41.2,
Am
F1 v.
.
January ___ 7.543.000.000 6.90n non non
•Based on average daily production. b Fewer working days In July 1932, than
ha July 1931.
On Jan. 31 the coal-burning plants had on hand a total stock of 5,658.000
tons of coal, of which 4,497,000 tons was bituminous coal (including lignite)
and 1,161.000 tons was anthracite. The January consumption of bituminous coal was 2,388.603 tons and that of anthracite 115.758 tons. At
this rate the bituminous stocks were sufficient to last 56 days and the anthracite stocks sufficient for 311 days.
The quantities given in the tables are based on the operation of all power
plants producing 10,000 kwh. or more per month, engaged in generating
electricity for public use, including central stations, both commercial and
municipal, electric railway plants, plants operated by steam railroads
generating electricity for traction, Bureau of Reclamation plants, public
works plants, and that part of the output of manufacturing plants which
Is sold. The output of central stations, electric railway and public works
plants represents about 98% of the total of all types of plants. The output
as published by the Edison Electric Institute and the "Electrical World"
includes the output of central stations only. Reports are received from
plants representing over 95% of the total capacity. The output of those
plants which do not submit reports is estimated; therefore, the figures of
output and fuel consumption as reported in the accompanying tables are on
a 100% basis.
[The Coal Division, Bureau of Mines, Department of Commerce, cooperates in the preparation of these reports.]
Farm Commodity Prices at New Low Point on Feb. 16
According to United States Department of Agriculture.
•
The general level of prices paid producers for agricultural commodities was, on Feb. 15, at a new low point in the
23 years of statistical records of the Bureau of Agricultural
Economics, United States Department of Agriculture. The
mid-February index was 49% of the 1909-1914 average, compared with 51% on Jan. 15 and 60% on Feb. 15 1932.
The Bureau says that seasonal declines in farm prices
of dairy and poultry products were primarily responsible
for the lower February index. Under date of March 2 the
Bureau further said:
Slight declines were registered in prices of cotton small grains, flaxseed,
hay and potatoes; moderate price advances were registered for corn, meat
animals, and horses. Farm prices of barley, hay and eggs were at the
lowest point in 23 years.
The United States average farm price of hogs was $2.94 per cwt. on
Feb. 15, or 10% above the Jan. 15 price. The advance was partly a
reflection of an apparent increase in consumer demand for pork products,
but chiefly the result of decreased rnarketings. The smaller rnarketings
are attributed to severe winter weather throughout the greater part of
the corn belt.
The hog-corn feeding ratio averaged 15.2 on Feb. 15, compared with
14.0 in mid-January and 10.9 a year ago. The ratio on Feb. 15 was the
highest since last November, and is attributed to the failure of local market
corn prices to recover appreciably from the seasonal low point reached on
Dec. 15 1932.
The average price of corn rose slightly at local farm markets during the
month ended Feb. 15, on account of an increase in feed requirements due to
colder weather, higher hog prices, and a seasonal advance outside the
corn belt.
A slight decline in the average farm price of wheat from Jan. 16 to
Feb. 15 is attributed to dull domestic demand and lack of an export outlet,
despite the strengthening influence of the poor condition of the winter
wheat crop.
Cotton prices declined during the month largely because of a decline
In export demand.
The farm price of eggs averaged lie, per dozen on Feb. 15, compared
with 21.4c. on Jan. 15. The sharp drop may be accounted for largely
by the seasonal increase in production early in February and pre-seasonal
rise in storage holdings.
Semi-Annual Survey of Real Estate Market by National
Association of Real Estate Boards—Abnormal Condition of Mortgage Money Supply—Supply Exceeds
Demand in only 2% of 307 Cities.
According to the National Association of Real Estate
Boards, the entirely abnormal present condition as to money
supply for real estate mortgage loans has reached this point:
In 91% of the principal cities of the country loans are seeking capital. In only 2% is mortgage money supply greater
than demand. That is the outstanding fact in the twentieth
semi-annual survey of the real estate market, covering 307
1631
cities, released by the Association on Feb. 20. The Association further reports:
Actual stringency is even greater than the above figures indicate, since
the only cities reporting any excess capital are cities of under 100,000
population, a detail that in itself is striking indication of the situation.
Further, the 2% of cities reporting any money available are confined to
three geographical sections of the country, the Middle Atlantic section,
the East North Central section, and the South Atlantic section. In 7% of
the cities reporting there is a normal condition or equilibrium between
financing supply and financing demand.
In cities of over 500,000 population the normal money centers, in no
case is capital seeking mortgage investment. In 82% of them loans are
seeking capital. Cities of from 200,000 to 500,000 population report 100%
that loans are seeking capital.
Larger Cities Leading in Market Activity.
Cities of over 500,000 population are in the best situation at present
in regard to degree of real estate activity, the survey indicates. In this
group 25% report more activity than at this time last year, 38% show
activity on about the same level as last year, and only 37% show a less
active market.
For the United States and Canada as a whole, only 11% of the 307 cities
show a more active market; 24% hold to about last year's level of activity;
65% report a less active market. Four Canadian cities reported in
the survey.
•
Selling Prices.
The larger cities are in the most favorable present situation also in
regard to selling prices, with 33% of them showing prices on the same
general level as last year, a condition reported by only 11% of the 307
cities. In 89% of the cities prices are lower.
Wide Spreads Mean "Know Your Local Variations."
Divergencies and anomalies shown in the current survey indicate that
study of the individual city's situation is at present decidedly important for
any forecast or judgment as to where the next shift may be expected in
any major market factor.
Shortage Coming in Dwellings.
As has been consistently indicated by the Association's recent surveys,
residential structures are the group in which demand may first be expected
in new construction. In 7% of the cities reporting there is already a
shortage of single-family dwellings; 76% report a supply about balanced
with demand. From the survey, therefore, a condition of shortage would
Immediately prevail in 83% of these 307 cities as soon as general business
conditions recover to such degree that families now "doubled-up" may
begin to undouble. In some cities reporting it is pointed out that from
3 to 6 families are occupying space intended as a single-family unit.
As to apartment buildings, supply is balanced with demand in 60% of
the cities reporting. Actual shortage already exists in 3% of the cities.
Business property supply is normal in 51% of the cities; is in excess
of present demand in 48% of the cities; is even now showing shortage in
1% of the cities.
Smallest Cities Showing Greatest Absorption of Existing Structures.
Cities of under 100,000 population show much the healthiest use or present
absorption for all types of properties, business properties, apartments and
single-family dwellings. Of cities under 25,000 population, 13% report
a present actual shortage of single-family dwellings.
Single-Family Dwellings Resist Rent Reduction.
While rents are predominantly down in all groups of properties, apart.
ment and business space show this tendency most uniformly. In only 76%
of the cities are rents lower in single-family dwellings, 22% of the cities
show a stationary condition hem in spits of the downward pull of the
past year's general business situation.
The down tendency in rents is reported for apartment property In 90%
of the cities; for two-family dwellings in 89% of the cities; for downtown
business property in 82% of the cities; for outlying business property in
93% of the cities; for downtown office space in 91% of the cities; for
office space in outlying business sections in 82% of the cities.
Business and Office Properties Show Opposite Trends As Between Central
and Outlying Districts.
The survey gives some measure of shifts caused by the violent dislocation
of general business in the past three years. It is notable that outlying
business properties have taken a decidedly harder blow than have central
business properties, as indicated by rent trends. On the other hand, outlying office properties, judging by the same criterion, have held a stable
use more generally than have central office properties.
Smaller Cities Show Greater Rent Stabilization.
Cities of over 500,000 population show greatest rent deflation. In 100%
of these cities reporting the trend is down in these types of property:
Two-family dwellings, apartments, business buildings in both the central
and outlying sections, central office buildings. In 37% of these cities,
however, stationary rents are reported in single-family dwellings. In 12%
of them last year's rates hold in outlying business sections for office
buildings.
Cities under 100,000 in population show the greatest degree of rent
stabilization.
Subdivision Market.
Cities of population between 25,000 and 100,000 show the strongest
stabilization in subdivision activity. In 20% of such cities activity is at
the same level as it was at this time last year. For the country as a
whole this is the report in 15% of the cities. Less activity is noted in 85%.
Interest Rates.
Recent indication that interest rates are falling is little reflected in
the survey reports, which, however, were sent in by the member boards
before the present movement got under way. The reports show interest
rates steady in 69% of the cities; falling in 4%; actually rising dill in
27% of the cities.
A fall in rates had reached only five geographic sections at the time the
reports were sent in. Those were the Middle Atlantic section (7% of the
cities) ; the East North Central section (3% of the cities) ; the South
Atlantic section (9% of the cities); the Mountain section (6% of the
cities); the Pacific section (2% of the cities).
The smallest cities, those under 100,000 population, show the greatest
disposition to falling interest rates.
Valuation of Construction Contracts Awarded as
Compiled by F. W. Dodge Corp. Shows 41% Decline
for February.
The valuation of construction contracts awarded in the
37 States east of the Rocky Mountains in the month of
1632
Financial Chronicle
March 11 1933
February 1933 was $36,333,500 less than in February 1932,
the figure for February of this year being $52,712,300 against
$89,045,800 in the same month of last year, a decline of
41% as compared with a decline of only $1,442,400 in
January of 1933 in comparison with January of 1932. For
the first two months of the year the decline from 1932 was
$37,775,900.
Commodity prices, as reported by local manufacturers, have
failed to
show any perceptible strength since October and in early February
reached
probably the lowest levels since the pre-war days. The official
price index
for the country also bears out this unfavorable trend.
It indicates that the
general level of quotations for commodities made up chiefly of manufactured goods in January was the lowest since February
1915. Such fractional advance as occurred in the latter part of February
was due partly to
an upturn in prices of foods and farm products
generally.
Most manufacturing has been against actual orders
so that the supply
of finished goods is relatively small, showing a
CONSTRUCTION CONTRACTS AWARDED
further decline from last
-37 STATES EAST OF THE
month and a year ago. Stocks of raw materials
and products to be used in
ROCKY MOUNTAINS.
further manufacture held by local factories
registered some seasonal increases, but in the aggregate for the industry
as a whole they continue in
No.of
New Floor
reduced volume as compared with the last two years.
Projects. Space (by. Ft.).
With only a few
Valuation.
exceptions, therefore, the manufacturing industry
of this district is in a
Month of February
strong statistical position to resume activity
upon the revival of demand
1933
-Residential building
1,886
3,149,100
811,805,300
for goods, seasonal or otherwise.
Non-residential building
1.532
4,085,000
23,670,400
Factory employment and payrolls of this district,
Public works and utilities
• 1.466
148,300
covering eastern Penn17,236,600
sylvania, southern New Jersey and the State of
Delaware, declined more
Total construction
3,884
7,382,400
than usual from the middle of December to the
852,712,300
middle of January, but
there has been some seasonal improvement since that
1932
-Residential building
2,817
time. In the State
6,071,200
824,417,300
of Pennsylvania, where manufacturing is most
Non-residential building
1,796
6,051,500
36,347,700
diversified, for instance,
Public works and utilities
factories employed in January 4% fewer workers
595
176,300
28,280.800
and paid 10% less in wages
than in December. Last year at the same time employmen
Total construction
t decreased
5,208
12,299,000
889,045,800
3% and payrolls 5%. The difference in the range
of the decline in January
First Two Months
this year as compared with a year ago was due partly
to the fact that more
1933
-Residential building
3,680
plants continued closed through the first part of January this
6,309,200
823,756,200
year than last.
Non-residential building
2,998
8,545.300
52,402,000
Preliminary reports indicate that a number of these plants have
Public works and utilities
been re1,006
980,400
59,910,100
opened since the middle of last month.
Total construction
Operating time in January, as measured by employee-h
7,684
15,834,900
$136,068,300
ours actually
worked in Pennsylvania factories, was curtailed by 8% as compared
1932
-Residential building
with a
5,456
12,993,100
$51,921,600
drop of 3% from December to January last year. Since
Non-residential building
early 1930 the
3,277
11,430,100
69,585,900
Public works and utilities
decline in working time on the whole has been more pronounced than
1,134
476,600
52,337,200
that
in employment, owing mainly to the spread of part-time work without
afTotal construction
9,867
24,899,800
$173,844,200
fecting the number of workers on the roll. The downward trend in wage
payments in the same period has been even sharper than that in
employNEW CONTEMPLATED WORK REPORTED-37 STAIRS EAST OF
THE
ment and employee-hours, reflecting principally a rather wide-spread
reROCKY MOUNTAINS.
adjustment of wage rates during the past three years. Compared with
record low levels reached in July 1932. employment in January
was 1%
1933.
1932.
larger and working time 13% higher, while payrolls were
2% smaller,
reaching a new record low point.
No. of
No. of
Output of factory products in this district during January
Projects.
Valuation.
Protects.
Valuation.
was curtailed
further by more than the usual volume, thus continuing steadily downward
I Month of FebruarYsince last October. Our preliminary index number,
Residential building
2.599
which is adjusted for
823,377.900
3,639
837,993.300
working days and seasonal changes, decreased from
Non-residential building-- 2,187
32,898,400
2,516
55 to 53% of the 1923-25
57,605,700
Public works and utilities
average, reaching the lowest level in the past
- 1.507
58.409,600
1,290
69.580,200
ten years and indicating that
the gains made in the fall months have
not been sustained. Among the
Total construction
6,293
8114,185,900
7,445
8165.179,200
principal manufacturing groups, only those
comprising leather and tobacco
products and transportation equipment
First Two Months
reported more than seasonal inResidential building
creases. The sharpest declines in the
4,991
642,185,200
7,048
892,418.000
remaining groups were in the manuNon-residuals! building__ -- 4,370
72,293,500
4,753
119.214,700
facture of metal and textile products and In
Public works and utilities_ 2,309
building materials. The food
101,550,500
2,377
159,988.600
group as a whole registered the smallest
decline, owing mainly to increased
Total construction
activity in sugar refining and canning
11,670
$216,029,200 14,173
8371.621,300
and preserving.
Most individual lines of manufacturing
showed sharp reductions from
December to January, although there
were exceptional gains in the output
of such commodities as pig iron, motor
Index of Real Estate Activity.
vehicle equipment, cigars, shoes
The index of real estate market activity, compiled by the and petroleum products. Compared with a year ago, productive activity
continued at greatly reduced levels with the
National Association of Real Estate Boards, registered 52.9 and petroleum products, which also showedexception of knit underwear
additional gains in output
for December. This is a gain of 2.9 points over the November during January.
Output of electric power declined more sharply
than It normally should
figure, said the Association on Feb. 20. The index is com- from December to January. Total sales
of electrical
showed a
piled from official reports of number of deeds recorded. It drop of over 2% In the month and 9% as compared with energy ago. The
a year
decline in the month was due principally to
smaller consumption for induscovers 64-representative cities.
trial and transportation purposes. Sales of
electrical energy to industries.
for instance, showed a decrease of 8% more
than usual; they were also 12%
smaller than last year.
Business Conditions in Philadelphia Federal Reserve
District-Unusual Quietness Prevailed During
January - Industrial Situation Showed Some
Seasonal Improvement.
In its "Business Review" of March 1 the Philadelphia
Federal Reserve Bank notes that "business during January
was unusually quiet, but since then there has been some
seasonalimprovementin the industrial situation,even though
the rate of current gain does not seem to be as rapid as at
the same time in other years." The bank also notes:
Industrial production in January showed rather exceptional
reductions;
in early February several manufacturing lines indicated some seasonal
gains.
'While total awards of building contracts increased somewhat, constructio
n
activity declined further from December to January. Retail trade has
been unusually slow and sales in January were smaller than was normally
to be expected. The total of wholesale business, on the other hand,showed
improvement. Shipments of commodities by rail in February have
been
slightly on the increase, but the January movement of general freight traffic
in this section declined sharply, following a rather well sustained volume for
several previous months. Life insurance sales during January decreased
by a smaller amount than usual; registrations of new passenger automobile
s
also fell off sharply instead of remaining unchanged. Compared
with a
year ago, business liquidations in January were not as numerous
nor as
large in the amount of liabilities involved; but other important
indicators
continued at considerably lower levels than in many years past.
Industrial employment, payrolls and working time showed larger
than
the usual seatonal reductions from December to January. Pennsylvan
ia
reports covering the most important branches of industry, trade and such
services as public utilities, hotels, laundries and dyeing and cleaning
establishments. employed 6% fewer workers in January than in December
and
their total payroll was 11% smaller. These changes were computed on the
basis of returns from over 5 000 establishments whose January employment
exceeded 554,000 workers, drawing a weekly average payroll of about
89.391,000.
Manufacturing.
There have been some signs of improvement In the market for manufactured products since the middle of January, although the extent of the
gain does not seem to be as broad nor as large in volume as that which
usually occurs after a dull season at the turn of the year. Almost twice
as many reports from a limited number of concerns show declines in current
sales as those that indicate seasonal increases. The volume of unfilled
orders for factory products at about the middle of February was smaller,
than a month and a year ago, owing largely to the prevailing hesitation
to make advance commitments.
Signs of Improvement Reported in Busines Circles
in
s
Richmond Federal Reserve District from First of
Year to Middle of February Although Period is
Normally Dull-Favorable Conditions Noted in
Wholesale and Retail Trade.
The Federal Reserve Bank of Richmond, in reviewing
conditions in the Fifth (Richmond) District, states that
"although the period from Jan. 1 to the middle of February
Is normally dull in business circles, there
were on the whole
some signs of improvement in evidence this year. Retail
trade, for example," states the Bank,"was
better in January
than in most recent months, and wholesale
trade made the
best comparative showing In more than three years." The
Bank, in its Feb. 28 "Monthly Review," further
notes:
Textile mills not only reported a seasonal
increase in cotton consumption
in comparison with December, but also showed
materially larger consumption than in January 1932, and for the first
time on record the Fifth
District consumed half the cotton used in
the entire country. Tobacco
prices paid growers were better in January
than in January last year.
Cold weather held back premature development
of fruit buds, and snow
and rain put soil in splendid condition for the
coming planting season.
During the past month rediscounts for member
banks held by the Federal
Reserve Bank of Richmond increased slightly,
and there was also an
increase in the bank's holdings of Government
securities. The circulation
of Federal Reserve notes showed an unseasonal
increase between Jan. 15
and Feb. 15, due chiefly to a desire of
some banks in the district to
strengthen their cash position.
Member bank reserve deposits at the
Reserve bank rose last month, and the cash
reserves of the Federal Reserve
Bank of Richmond also increased materially.
Loans by member banks
declined moderately between the middle of
January and the middle of
February, and their demand deposits dropped
accordingly, but time deposits
rase. Debits to individual accounts figures
in leading cities of the Fifth
District during the four weeks ended Feb. 8
showed a seasonal decline in
comparison with debits in the four weeks ended
Jan. 11, and also totaled
approximately 17% less than debits in the corresponding four weeks last
year, ended Feb. 10 1932. Employment conditions
did not Improve last
month, but on the contrary probably grew worse, due to unfavorable weather
for outside work. Coal production in the Fifth District in January was
in smaller volume than in January 1932. Spot cotton prices between the
middle of January and the middle of February ruled somewhat lower than
Financial Chronicle
Volume 136
prices during the preceding month. Tobacco markets practically wound
up this season's business with a very small volume of sales, although prices
paid for tobacco were materially better than prices paid in January 1932.
Tobacco manufacturing continued at a lower rate than manufacturing at
this season a year ago. Construction work provided for in permits issued
in leading cities and in contracts actually awarded in January 1933 was
In very small volume, and offered little hope of improvement in employanent conditions for building tradesmen in the near future. The outlook
for agriculture in 1933 is unfavorable, due to the low prices prevailing for
-farm products and to the load of debts accumulated from several unfavorable
years by many farmers.
The following, regarding wholesale and retail trade conditions in the Richmond District, we also take from the
"Review":
Retail.
Sales in 32 department stores in the Fifth District in January made a
more favorable comparison with sales in the corresponding month of the
preceding year than most other recent months. Sales were 18.1% less
than sales in January 1932, a considerable part of the decline being due to
-price reductions this year.
Stocks on the shelves on the reporting stores declined an average of
11.4% in January, a seasonal reduction, and at the end of the month
averaged 18.5% less than stocks on hand a year earlier. Probably most
of the decline in stocks during the year is accounted for by price reductions.
Collections in January 1933 averaged 28.2% of receivables outstanding
at the beginning of the month, a slightly lower percentage than 28.3%
-collected in January 1932.
Wholesale.
Wholesale trade was better in January in the Richmond Reserve District
than in any other month since the depression began, in proportion to the
volume of business done in recent months. Three of the five lines for
-which data are available reported larger sales than in January last year,
and four of the five lines reported seasonally increased sales in comparison
with December.
Stocks on hand on Jan. 31 1933 showed increases in every line over
-stocks on Dec. 31, but were smaller in all lines than stocks on Jan. 31 1932.
Collections in all five lines were better in January this year than in
the corresponding month last year, shoes and hardware showing the
-greatest improvement.
Downward Trend of Commerce and Industry in St.
Louis Federal Reserve District Evident During
Latter Months of 1932 Continued During January
1933.
"With the exception of a limited number of lines, mainly
Those affected by seasonal influences," the Federal Reserve
Bank of St. Louis states that "commerce and industry in the
Eighth (St. Louis) District during January continued the
recessionary trends which marked the closing months of
last year." In its "Monthly Review" of Feb. 28, the
Bank also notes:
The rate of the downward movement, however, was less marked than
In the last quarter of 1932, and in a number of instances there appeared
fairly definite indications of stabilization, both with reference to volume of
business transacted and prices. Distribution was handicapped by the
unusually mild weather which prevailed throughout the month. In many
sections, including the St. Louis area the mean temperature in January was
the lowest in more than half a century. This had a tendency to hold down
the movement into consumptive channels of all descriptions of seasonal
merchandise, but more particularly apparel, fuel and drugs and chemicals.
Decreases in sales volume extended to wholesaling and retailing lines, and
4n the case of the latter were measurably larger than the average in recent
years. With the exception of boots and shoes, hardware and dry goods,
all wholesaling classifications showed decreases from December to January,
and in all lines the totals were smaller than in January 1932.
Since the last week in January, earlier conditions were reversed in a
sharp drop in temperatures, extending to the most southern tiers of the
District and bringing the first protracted cold weather of the winter. Some
-damage to early truck crops and fruit trees in the south and to the growing
wheat crop was occasioned by the cold snap, but on the whole the seasonal
weather was beneficial to business. There has been a noticeable pick-up
In ordering of merchandise and production and shipments of bituminous
.coal in all the fields of the district. Another benefit from the freezes has
been heavy mortality among hibernating boll weevils in the cotton sections.
On the other hand, the extreme cold weather served to increase hardships
of the needy unemployed, and applications for assistance made to the
relief agencies were more numerous than heretofore. The employment
situation as a whole showed no improvement as contrasted with the preceding thirty days. In the large cities the number of idle workers was
increased by releases of clerical help following the holidays.
Manufacturing activities in all lines, especially iron and steel and building
materials generally, were considerably below the same time a year ago.
A number of plants, including stove, heating apparatus and implements,
which closed down for the holiday and inventorying period, are either still
idle or have resumed on sharply reduced schedules. While inventories of
finished goods are universally light, there is a disposition on the part of
merchants to replenish with extreme caution, and in turn manufacturers
are making up but little stock for which they have not actual or prospective
-orders.
As reflected in sales of department stores in leading cities of the district,
volume of retail trade in January was 53% smaller than in December and
23.3% less than in January 1932. Combined sales of all wholesaling and
jobbing firms reporting to this bank were 46.5% larger in January than
In December, but 12% smaller than in January, last year. The value of
permits issued for new construction in the five largest cities in January was
slightly smaller than in December and about 68% less than in January 1932.
Construction contracts let in the Eighth District In January were 3.6%
larger than In December and 3.2% more than in January last year. Debits
to checking accounts in January showed an increase of approximately 3%
-over December, but a decrease of 18% under January 1932.
The volume offreight and passenger traffic handled by railroads operating
tn this District continued substantially smaller than in the corresponding
periods a year and two years earlier. Since the first week in February
the sharp drop in temperatures has been reflected in a heavier movement of
coal and coke, and moderate improvement has taken place in some other
-classifications. For the country as a whole loadings of revenue freight for
the first four weeks this year, or to Jan. 28, totaled 1,910,496 cars, against
1633
2,266,771 cars for the comparable period in 1932 and 2.873,211 cars in 1931.
The St. Louis Terminal Railway Association, which handles interchanges
for 28 connecting lines interchanged 111.834 loads in January. against
112,123 loads in December and 140.912 loads in January 1932. During
the first nine days of February the interchange amounted to 36,361 loads,
which compares with 29,027 loads during the corresponding Period in
January, and 42,158 loads during the first nine days of February 1932.
Passenger traffic of the reporting roads decreased 25% in January as C0111
Pared with the same month a year ago. Estimated tonnage of the Federal
Barge Line between St. Louis and New Orleans in January was 81,300
tons, against 93,766 tons In December and 130,807 tons in January 1932.
Collections generally through the District in January and the first half
of February were spotty and irregular, with the average measurably below
the preceding several months and a year ago. Wholesalers and jobbers
In the principal distributing centers report payments on current accounts
are being made promptly, but liquidation of older indebtedness is backward,
and requests for extensions are numerous. Similarly, strong accounts are
paying their bills when due, with some taking advantage of discounts, but
no improvements has taken place in collections from weaker debtors.
Retail collections have been noticeably affected by the considerable volume
of funds tied up in suspended banks in different sections of the district.
Liquidation with both merchants and banks in the tobacco sections have
improved since the opening of the markets for the 1932 crop in December.
As has been the case for a number of months, collections for manufacturers
and distributors of the heavier lines of merchandise are relatively less
satisfactory than in the industries dealing in goods for ordinary consumption.
California Business Lower During January as Compared with December According to California State
-Factory Employment Also
Chamber of Commerce
Showed Decline.
General business conditions in California during January
receded after showing a slight improvement from November
to December, according to a survey made by the Research
Department of the California State Chamber of Commerce.
The adjusted indices for carloadings, value of building permits, and petroleum production showed gains, while employment, cement production, department store sales, and
bank debits declined. In its survey, the Chamber also
pointed out:
Cool weather during January and the first two weeks of February retarded
the growth of many winter crops. Frosts occurred in most sections of
the State, with negligible damage except in the Imperial Valley, where
seine damage to vegetable crops was reported. Rainfall for the season
to date is from 23 to 52% below normal, except in the southern section
of the State. Supplementary feeding of livestock has been necessary due
to the poor condition of pastures. Prices of meat animals showed a slight
improvement over January quotations.
Factory employment in California during January receded 5.2% from
the December level as compared with the expected seasonal decline of
2.3%. The seasonally corrected index consequently dropped about 3%.
Compared with January a year ago, employment declined 8.2%, and factory
payrolls receded 19%. The decline of the latter is partly due to reduction
in wages. Practically all industrial establishments operated on reduced
employment. Unfavorable weather conditions curtailed agricultural and
other outdoor work, thus increasing the surplus of laborers. The gain in
building permits improves the outlook for increased employment in
construction work.
Value of building permits in 52 California cities during January
exhibited a gain of 40.4% over the previous month. Normally, a seasonal
decline of 8.7% may be expected from December to January. Consequently,
the adjusted index advanced 49.3%. Including the value of permits for
the Golden Gate Bridge, the total value of permits, seasonally corrected,
showed a gain of 214%. Practically all sections of the State reflected
some increase in per:nits granted.
January department store sales moved to lower levels. After allowing
for seasonal changes, the Los Angeles department store sales receded 11.2%
and the San Francisco sales declined 13.1%. The total sales for the 48
California stores showed a decrease of 27.1% under January 1932, which
was partly influenced by the drop in retail prices.
January bank debits for the 14 California cities, corrected for seasonal
influences, declined 6% below the previous month, and were 23% under a
year ago. The 11 cities, excluding the three largest California cities,
decreased 8% and were 31% below January 1932. The declines have been
partly influenced by the 10% recession in the general level of all prices,
including wages and rent.
Distribution, as measured by revenue freight carloadings, showed a
favorable gain over December. The adjusted index advanced 3%, which
was contrary to the expected seasonal change, which is downward.
Softwood Lumber Mills Report Heavy Shipments.
New business booked at the lumber mills during the week
ended March 4 1933 was 5% above that reported for the
previous week and 28% below that received during the corresponding week of 1932, according to telegraphic reports to
the National Lumber Manufacturers Association from regional associations covering the operations of 702 leading
hardwood and softwood mills. This new business amounted
to 97,869,000 feet, which was 19% above production.
Production totalled 82,320,000 feet which was 5% less than
reported for the previous week and 13% less than for similar
week of last year.
Softwood lumber shipments during the week ended March
4 1933 were the highest of any week of 1933 except one.
They were 36% above production and only 12% below those
of corresponding week of 1932. Hardwood shipments were
60% above production and 29% below those of last year,
continues the Association, which further reports as follows:
New business during the week ended March 4 1933 was 17% of capacity,
as reported by four associations. The West Coast Lumbermen's Association
1634
Financial Chronicle
omitted capacity reports. The previous week's orders were 19% of capacity
with the West Coast report included.
During the week ended March, Western Pine mills were the only group
which reported orders above production; Southern pine and West Coast
reports showed orders 1% and 2%,respectively, below production. Western
Pine orders were 2% times production; all softwood orders were 15% above
cut; hardwood orders were 53% above output and GUM lumber was 19%
above.
Forest products carloadings during the week ended Feb. 25 were 14.140
cars, an increase of 113 cars over the previous week and a decrease of
5.500 cars from the corresponding week of 1932.
Lumber orders reported for the week ended March 4 1933, by 408 softwood
mills totaled 84,823,000 feet, or 15% above the production of the same mills.
Shipments as reported for the same week were 100,573,000 feet. or 36%
above production. Production was 73.797.000 feet.
Reports from 310 hardwood mills give new business as 13,046,000 feet,
or 53% above production. Shipments as reported for the same week were
13.615,000 feet, or 60% above production. Production was 8,523,000 feet.
Unfilled Orders.
Reports from 359 softwood mills give unfilled orders of 324,281,000 feet,
on March 5 1933, or the equivalent of 12 days' production. The 535
identical mills(hardwood and softwood)report unfilled orders as 392.739,000
feet on March 4 1933, or the equivalent of 13 days' average production, as
compared with 551.193.000 feet, or the equivalent of 18 days' average
production on similar date a year ago.
Last week's production of400 identical softwood mills was 72,979,000feet,
and a year ago it was 81.577.000feet;shipments were respectively 99.271,000
feet and 112,801.000, and orders received 84,015,000 feet and 118.451,000.
• In the case of hardwoods, 194 identical mills reported production last week
and a year ago 7,231,000 feet and 10.604,000;shipments 11,170,000 feet and
15,706,000; and orders 10,793,000 feet and 12,918,000.
West Coast Movement.
•
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 178 mills reporting
for the week ended March 4:
SHIPMENTS.
UNSHIPPED ORDERS.
NEW BUSINESS.
1 ect.
,
Feet.
Feet.
CoastwLse and
Domestic cargo
Domestic cargo
delivery ---- 14 278 000 delivery _ — _ 78,030,000 Intercoastal _ 21,817.000
. .
10,529,000 Foreign
70.942,000 Export
19,743,000
Export
16,883,000 Rail
48,262,000 Rail
12,941,000
Rail
4,800,000
Local
4,300,000
Local
46,490.000 Total
Total
197,234,000
Production for the week was 47,212,000 feet.
Total
59,301.000
March 11 1933
three inches shorter than the master series. The new car
has a valve-in-head six cylinder motor, which develops
60 hp. with a top speed of 65 to 70 miles an hour.
The Hudson Motor Co. late last month announced price
reductions on all models ranging from $10 to $145. The
price-adjustments make the Essex-Terraplane Eight the
lowest priced straight-eight on the market, according to
Chester G. Abbott, Sales Manager of the Hudson company.
The Plymouth Motor Corp. recently added a new twodoor sedan to its line, listing at $505. The new ear carries
all of the features offered in other Plymouth body types.
Automobile Financing During January 1933 and the
Full Year 1932.
A total of 92,284 (preliminary) automobiles were financed
in January on which $31,395,476 was advanced, compared
with 82,110 (revised) on which $27,025,018 was advanced
in December, and with 122,344 on which $44,628,529 was
advanced in January 1932, the Department of Commerce
reported to-day (March 11).
In the full year 1932 1,521,988 cars were financed with
advances of $535,625,105, compared with financing of
2,448,241) cars on advances of $950,301,958 in 1931.
Volume of wholesale financing in January was $30,201,868
(preliminary), as compared with $20,130,580 (revised) in
December and $34,841,766 in January 1932. Wholesale
financing during the full year 1932 totaled $330,267,440, as
compared with $554,440,655 in 1931.
Monthly statistics on automobile financing, based on
data reported to the Bureau of the Census by 313 automobile financing organizations, are presented in the table
below. The figures include complete revisions to date.
Southern Pine.
The Southern Pine Association reported from New Orleans that for
99 mills reporting, shipments were 10% above production, and orders 1%
below production and 10% below shipments. New business taken during
the Week amounted to 18,251,000 feet, (previous week 19,242,000 at 110
mills); shipments 20,234,000 feet, (previous week 20,841,000); and production 18,395,000 feet, (previous week 20.445,000). Production was 31%
and orders 31% of capacity, compared with 33% and 31% for the previous
week. Orders on hand at the end of the week at 99 mills were 51,323,000
feet. The 99 identical mills reported an increase in production of 4%,
and in new business a decrease of 25%, as compared with the same week a
year ago.
Western Pine.
The Western Pine Association reported from Portland, Ore., that for
108 mills reporting, shipments were 152% above production, and orders
150% above production and 1% below shipments. New business taken
during the week amounted to 19.109,000 feet, (previous week 17,366,000
at 119 mills); shipments 19 249,000 feet, (previous week 21.408,000); and
production 7,629,000 feet,(previous week 7,611,000). Production was 6%
and orders 15% of capacity, compared with 6% and 13% for the previous
week. Orders on hand at the end of the week at 108 mills were 91,590.000
feet. The 106 identical mills reported a decrease In production of 26%.
and in new business a decrease of 42%, as compared with the same week
a year ago.
Northern Pine.
The Northern Pine Manufacturers of Minneapolis, Minn., reported no
production from seven mills, shipments 1,293.000 feet and new business
575.000 feet. The same mills reported new business 70% less than for the
same week last year.
Northern Hemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 16 mills as 561,000 feet, shipments 496,000 and orders 398.000 feet. Orders were 5% of capacity compared with 11% the previous week. The 16 identical mills reported a
decrease of6% in production and a decrease of 46% In new business, compared with the same week a year ago.
Year
and
Month.
1931.
January
February
March
April
May
June
July
August
September
October
November
December
Total year
1932.
January
February
March
April
May
June
July
August
September
October
allovember
aDecember
aTotal year
1933.
bJanuary
Retail Financing.
Total,
Number
of Cars.
40.184,672
49.812.959
63,089.716
71.194.343
72,623,199
58.171,936
48,853.330
43.942.549
35,840,571
25,770.269
15,719.974
29,257,137
160,490
172,958
237.273
290,076
277.950
285.389
238,878
204.878
176.663
159,980
131.047
134,663
Number
of Cars.
61.691,837
66.130.134
91.997,270
112.982.254
109.372.143
104.642,284
95.910.307
79.598.201
68,284.838
80.691,614
48.568.648
50,432,428
Volume
in Dollars.
58,499
67.599
102,665
133.347
126,729
115.106
100,832
83.602
67.609
58,055
44.701
48,131
32,945,588
36,854,438
55.022,088
70,544,761
68.684.134
63.554,955
59.300,107
46.865,947
38,609.797
33.195.759
25.394.801
27,305,927
950,301,958 1,006.875
554,440,6.55 2,448,245
34,841,766
33,276,393
34,121.364
33,903,704
38.608.439
43,682.471
26,016,028
22.104.084
18,676,535
13,131.603
11,774,473
20,130,580
New Cars.
Volume
in Dollars.
558,158,290
122.344
123,574
140.779
155.691
164,721
177.961
132,467
131,069
111,189
97.922
82,161
82,110
44.628.529
44,829,138
51,148,285
56.415,652
58.435,573
63.169.095
44.716,907
45,068,741
38.837.225
33,623.573
27,727,369
27,025.018
41,375
40.780
46,234
57,861
63.885
74,205
45,816
46.416
39.513
31.241
24,666
26,194
23,475,671
23,623.496
26,887.515
31,835,792
33.590,555
38,329,834
24,149,326
24,644,532
21,551,246
17,644,406
13,980,978
14,090,821
330,267,440 1,521,988
535,625,105
537,986
293,803,672
31,395,476
35.566
18,363,929
30,201,868
c92,284
Retail Financing,
Year
and
Month.
Used Cars,
Number
of Cars.
Hardwood Reports.
The Hardwood Manufacturers Institute of Memphis. Tenn., reported
production from 294 mills as 8,088,000 feet, shipments 12,561,000 and new
business 12,397,000. Production was 15% and orders 23% of capacity,
compared with 17% and 26% the previous week. The 178 identical mills
reported production 30% less and new business 9% less than for the same
week last year.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh. Wis., reported production from 16 mills as 435,000 feet, shipments 1,054,000 and orders 649.000 feet. Orders were 11% of capacity,
compared with 13% the previous week. The 16 identical mills reported a
loss of55% in production and a loss of 64% in orders, compared with the
same week last year.
Wholesale
Financing
Volume
in Dollars.
January.
February
March
April
May
June
July
August
September
October
November
December
Volume
in Dollars.
Unclassified.
Number
of Cars.
Volume
in Dollars.
1931.
97,834
100.698
128.311
149.112
142.796
141.935
128.707
115,020
103.234
97.437
82.816
82,757
Total year
27.236.324
27.707.242
34,688.428
39,548.288
37,781.543
37.988,162
34,126,071
30.486,513
27,580.567
25.882,006
21,891.123
21,859,828
4,157
4,663
6,297
7,617
8,425
8,348
7,339
6,256
5.820
4.488
3.530
3,775
1,509,925
1.568,464
2.286.756
2.891.205
3,026.466
3,099,167
2,484.129
2,245.741
2,094.474
1,613,849
1,282,724
1,266,673
1,370,655
386,774.095
70,715
25,369,573
77,321
78,802
90.121
93,398
96,010
99.513
82.687
80,648
67.724
63,791
54,696
53,609
19.974.286
19,041,665
22,779,892
23,066,269
23.257,953
23,394,676
19,225,478
18,908,584
15.989,259
15,035.731
12,833,770
12,174,121
3,648
3.992
4.424
4.632
4,826
4.243
3,964
4,005
3,952
2,890
2,799
2,307
1,178.572
1.263.977
1.480.878
1,513,591
1,587.065
1,445.085
1,342,103
1,515,625
1,296,720
943.436
912,621
760,076
938,320
226,581,684
45,682
15,239,749
54,522
12.266,354
1933.
New Automobile Models and Price Reductions.
The Chevrolet Motor Co. on March 8 announced that a
companion car to the present series to be known as the
"Standard Six" Chevrolet will be shown throughout the
nation to-day (March 11). Prices of the new line are $445
for the coupe, $455 for the coach and $475 for coupe with
rumble seat, comprising the three body types offered.
The coupe is $50 under the corresponding model of the
Chevrolet "Master Six" line, while the other two models
are $60 less. The new line resembles in appearance its
companion series having a wheelbase of 107 inches, or only
January
February
March
April
May
June
July
August
September
October '
allovember
a December
aTotal year
1933.
bJanuarY
2,196
765.198
a Revised. 13 Preliminary. c Of this number 38.54% were new cars. 59.08%
used cars and 2.38% unclassified.
Financial Chronicle
Volume 136
Automobile:Production in January.
January factory sales of automobiles manufactured in the
United States (including foreign assemblies from parts made
in the United States and reported as complete units or
vehicles), based on data reported to the Bureau of the
Census, consisted of 130,114 vehicles, of which 108,392 were
passenger cars, 21,717 trucks, and 5 taxicabs, as compared
with 107,353 vehicles in December 1932, 119,344 vehicles
in January 1932, and 171,848 vehicles in January 1931.
The table below is based on figures received from 123
manufacturers in the United States, 35 making passenger
cars and 105 making trucks (17 making both passenger cars
and trucks). (The total number of manufacturers heretofore reported as 144 has been reduced due to certain estaolishments going out of business, discontinuing manufacture of
automobiles, or being merged with other establishments).
Figures for taxicabs include only those built specifically for
that purpose; figures for trucks include ambulances, funeral
cars, fire apparatus, street sweepers, and buses. Canadian
figures are supplied by the Dominion Bureau of Statistics.
NUMBER OF VEHICLES.
Untied States.
Canada.
Year & Month.
Total.
PassenTotal. ger Cars Trucks.
33,531
39,521
45,161
50,022
45,688
40,244
34,317
31,772
31,338
21,727
19,683
23,644
512
529
410
665
340
360
180
104
141
651
999
1,194
,
N. 1-.N11.1P.WM:.4N000
,
-44.1.4.10O=.4.110-00
1931
January
February
March
April
May
June
July
August
September
October
November
December
Passenger
TaxiCars.
Trucks. cabs.x
Total(Year). 2,389,738 1,967,055 416,648
6,035
82,621
20,541
23,308
19,560
27,389
26,539
22,768
14,438
14,418
19.902
13,595
12,025
21,204
97
25
74
31
73
235
27
9
13
5
239
291
3,731
5,477
8,318
6,810
8,221
7,112
7,472
4,067
2,342
2,923
2,204
2,139
Total (Year)_ *1,370,678 *1,134,372 235,187
1,119
60,816
1932
January
February
March
April
May
June
July
August
September
October
November
December
171,848
219,940
276,405
336,939
317,163
250,640
218,490
187,197
140,566
80,142
68,867
121,541
119,344
117,418
118,959
148,326
184,295
183,106
109,143
90,325
84,150
48,702
59,557
*107,353
137,805
179,890
230,834
286,252
271,135
210,036
183,993
155,321
109,087
57,764
48,185
96,753
98,706
94,085
99,325
120,906
157,683
160,103
94,678
75,898
64,735
35,102
47,293
*85,858
4,552
7,529
10,483
14,043
10,621
5,583
3,151
3,426
2,108
761
812
2,024
1,944
2,342
2,510
3,116
2,117
1,252
1,069
1,118
538
679
435
408
65,093 17,528
3,112
4,494
6,604
5,660
7,269
6,308
6,773
3,166
1,741
2,361
1.669
1,561
619
983
1,714
1,150
952
804
699
901
601
562
535
578
50,718 10,098
1933
January
130,114
5
3,358
2,921
108,392 21,717
437
x Includes only factory-built taxicabs, and not private passenger cars converted
Into vehicles for hire, *Revised.
Goodyear Tire 8c Rubber Co. and Master Tire 8c Rubber
Corp. Adopt Two-Day Work Week for Factory
Employees-Office Workers Time Also Cut.
The working week for employees of two Akron, Ohio,
rubber factories was cut March 4 as a result of the nationwide banking situation, according to Associated Press
advices from Akron on that day. The advices, noted in
the New York "Times" of March 5, added:
The Goodyear Tire & Rubber Co. posted a notice that the factory will
go on a two-day and the office on a three-day basis March 6. Between
13.000 and 14,000 Goodyear employees were affected.
W. P. Cline, Vice-President of the Master Tire & Rubber Corp., announced a reduction from five to two days in all plants controlled by the
corporation. These companies are the Falls Rubber at Cuyahoga Falls,
Cooper & Giant at Findlay, Ohio, and Quaker City at Philadelphia. Office
workers will not be affected. Mr. Cline said.
Australian Wheat Conference Adopts Resolution Urging Participation With United States, Canada and
Argentina in Early Conference to Restore Remunerative Wheat Prices.
Associated Press accounts from Melbourne, (Australia)
March 2, stated:
A resolution asking the Commonwealth Government to take steps to
participate in aft early conference with the United States, Canada and
Argentina to restore remunerative wheat prices was adopted by the Australian Wheat Conference, which opened here to-day at the invitation of the
Commonwealth Government.
A motion was being discussed, at the request of the Commonwealth
Government, to guarantee a price of 3 shillings a bushel, conditional on a
20% reduction in acreage. The reduction was to apply only if other
wheat-producing countries adopt the same policy.
Canada Plans Grain Conference-Expects International Gathering in July.
Special correspondance from Ottawa March 2 published
in the New York "Times" of March 5, said:
In 1930 the Government of Canada extended an invitation to all countries
to participate in a world's grain exhibition and conference in Regina. Sask.,
the date then being set in 1932. Later, in view of the depression, it was
decided to postpone the enterprise for a year. To-day the preparations are
Complete, the entries are closed and exhibits are on their way from two-score
1635
countries to compete for prizes which amount to more than £20,000. The
exhibition will be opened July 24 with appropriate ceremonies and will continue to Aug. 5.
More than 30 leading scientists whose activities embrace all branches of
field crop production and marketing have agreed to present papers. It is
anticipated, too, that a great co-operative conference will be held, and in
this, officials of the World's Co-operative Alliance are much interested.
The main classification of papers in the conference section of the enterprise
will be along the lines of agronomy, insect pests and friends, economics,
including marketing, milling and baking, agricultural machinery and general
4.
Germany Again Temporarily Reduces Import Duty on
Limited Quantities of Wheat and Rye Under Export Certificates.
The Department of Commerce at Washington announced
on March 3 that a German overnment decree, to be effective
from March 7 to July 31, 1933, again restores the reduced
import duty of 0.75 riechmarks per 100 kilos on wheat, and
0.50 riechsmark per 100 kilos on rye, imported by German
mills under export certificates issued upon the exportation
of equivalent quantities of domestic wheat and rye milling
products, according to a cablegram to the Commerce Department's Division of Foreign Tariffs from Commercial Attach
H. Lawrence Groves, Berlin. The Department added that
under a previous decree that expired on January 31, 1933,
a similar reduction in import duties on wheat and rye had
been granted to German mills.
a'
Germany Authorizes Sale of 300,000 Tons of Eosin
Stained Domestic Wheat for Poultry Feeding.
On March 3, the Department of Commerce at Washington
issued the following:
A German Government decree provides for the sale of 300,000 metric tons
of domestic wheat, stained with eosin, to poultry breeders, intended asa
substitute for imported corn, according to a cablegram to the Commerce
Department's division of Foreign Tariffs from Commercial Attache H.
Lawrence Groves, Berlin.
Reduction in Rice Acreage Urged by American Rice
Growers Co-operative Association-25% Cut Would
Bring Price Raise, Say Directors.
In a dispatch February 21 from Cape Charles, La., to
the New Orleans "Times-Picayune" it was stated that the
American Rice Growers' Co-operative Association board of
directors, in its latest meeting adopted a resolution favoring
a 25% reduction in rice acreage and enlisting the co-operation of "all banks, financing institutions, canal companies
and growers in furthering this movement to the end that by
such a reduction in acreage excessive surpluses may be
counteracted and the total supplies next season brought to
a point that will not be in excess of domestic consumption."
The dispatch continued:
The resolution, which was made public by Homer L. Brinkley, General
Manager of the Association, points out that there was excess production
last year, that reduced demand has caused a heavy carryover, and that the
Increased supply has not been offset by a sufficient reduction in acreage.
The Association board predicts severe financial losses to the entire industry
if this condition is not remedied.
"The directors," said Mr. Brinkley, "were of the opinion that part of
the solution of present ruinously low prices lay in the hands of the growers
themselves and that by the reduction of acreage to a point where production
would not be in excess of domestic demand there would result a material
rise in the starvation prices which are being paid for rough rice at the present
time.
"It was pointed out that with the present decreased demand and low
rate of distribution, the carryover would probably be approximately the
same as last season and in order to offset the evil effects of the prospective
surplus, a reduction in acreage was an obsolute necessity.
"The Association board directed officials and employees of the Association
to immediately take such steps in every part of the three rice producing
States of Louisiana, Texas and Arkansas, as were deemed necessary to
bring to the attention of producers the necessity of acreage reduction and to
enlist the aid of all banks, financing agencies, canal companies and others,
in a united effort to bring about a uniform reduction in every part of the
three States of 20 to 25% under last year."
The Southern Pacific RR. reports more than tripling its rice movement
to Lake Charles during the last six months, August to January, inclusive,
as compared with corresponding months of the previous season. The last
six months show 206,121 pockets of rice handled by the road into Lake
Charles as compared with approximately 60,000 in the previous period.
The monthly average the last six months was 34,353 pockets as against
10,000 the previous season. The last six months' business represents 358
carloads of rice handled.
In addition, last year's lumber and salt movement over the Southern
Pacific lines into Lake Charles showed heavy tonnage, with the lines
averaging 50 carloads each of lumber and salt per month throughout the
year.
February Flour Output Continues Below
Corresponding Period in 1932.
General Mills, Inc., in presenting its summary of flour
milling activities from figures representing approximately
90% of all flour mills in the principal flour producing centres,
reports that 4,792,656 barrels of flour were produced during
February 1933, compared with 5,019,985 barrels in the
same month last year and 5,253,819 barrels in January 1933.
1636
Financial Chronicle
During the eight months ended Feb. 28 1933 output
totaled 44,213,419 barrels, as against 49,323,150 barrels
during the eight months ended Feb. 29 1932. The summary of General Mills, Inc., follows:
PRODUCTION OF FLOUR (NUMBER OF BARRELS).
-Month ofFebruary- -8 Months Ended
Feb. 28'33. Feb. 29'32.
1933.
1932.
Northwest
1,115,915 1,195,995 10,705,422 13,236,077
Southwest
1 718,290 1,796,995 15,700,138 17,073,541
Lake Central and Southern
1,694,178 1,628,666 15,463,880 15,725,721
Pacific Coast
264,273
398,329 2,343,979 3,287,811
Grand total
4,792,6.56 5,019,985 44,213,419 49,323,150
NOTE.
-This authoritative compilation of flour milling activity represents
approximately 90% of the mills in principal flour producing centres.
Coffee Bonus of Colombian National Government To
Be Discontinued.
The following is from the New York "Journal of Commerce" of Feb. 27:
March 11 1933
News of the failure of the Brazilian-Belgian agreement was the firs
indication that such a movement was underway. The Government and
Coffee Council maintain strict reserve on such transactions until they are
definitely agreed upon.
Consumption of Sugar in United States Increased 543
Tons During January as Compared With January
1932.
Sugar consumption in the United States during January
1933 amounted to 380,857 long tons, raw sugar value, compared with 380,314 tons consumed during January, 1932.
This is an increase of 543 tons to .14%,according to a report
report issued by B. W.Dyer and Company,sugar economists
and brokers.
Raw Silk Imports Drop Sharply - Approximate
Deliveries to American Mills Lower-Inventories
Also Fall Off.
At the expiration on March 15 of the one-year term fixed by Decree 422 of
March 7 1932 the 10% premium paid by the Colombian National GovernAccording to the Silk Association of America, Inc.,.
ment will be discontinued. Thereafter the Bank of the Republic will purFebruary imports of raw silk were 23,377 bales as compared
chase coffee dollar drafts as well as those arising out of exportation of
with 53,114 bales during the previous month and 53,574
other Colombian products at the rate of 113 per hundred. The bank's selling
rate will be 116.
bales during February 1932. Deliveries to mills during
February were 32,665 bales as compared with 46,204 bales
Brazil Scraps National Coffee Council as Export Aid
- during the previous month and 45,909 bales during February
Surplus Problem Reported Still Acute Despite 1932. Raw silk stocks at warehouses on Feb. 28 were
Destruction of 1,800,000,000 Pounds-Old Taxes 60,459 bales as compared with 70,570 bales on Feb. 28 1932.
Bar Price Cut-Federal Bureau Takes Control as
RAW SILK IN STORAGE.
Emergency Step.
(As reported by the principal pubic warehouses in New York City and Hoboken.).
European. Japan. AU Other,
Figures in BalesTotal.
The following (Associated Press) from Rio de Janeiro, In storage Feb. I 1933
2 661
59,996
7,090
69,747
Imports, month of February 1933 x
21,362
1,610
405
23,377
March 4 is from the New York "Herald Tribune":
Total available during February 1933
93.124
After destroying 1,800.000,000 pounds of coffee in two years, Brazil has
8,700
3,066
81,358
In storage
z
decreed out of existence its co-operative National Coffee Council and placed
control directly under the Treasury Department.
With the destruction program proceeding under the new government
bureau. Brazil soon will have burned and dumped into the sea enough coffee
to provide a pound for every one of the earth's 2,000,000,000 inhabitants.
Destruction to the end of January had passed 13.500,000 sacks of 132
pounds each, yet the surplus problem is as bad as ever.
The new Federal Bureau finds the problem acute, although the current
crop is somewhat under average. Overproduction continues enormous, the
depression has reduced world consumption, and the export tax burden
enables competitors to meet Brazilian prices.
The bureau has announced that it intends to follow the Council policies
of purchasing stocks from growers, controlling exports and attempting to
increase foreign sales by direct agreements with various governments.
Brazil had a surplus of about 27,000,000 sacks at the start of the current
crop last June. The present crop is estimated at about 16,000.000 sacks,
compared with 19,000,000 for 1931-32. That makes a total of more than
40,000,000 sacks confronting the coffee administration.
Export taxes are a formidable obstacle and are estimated in various
quarters as more than 100% of the cost of production. Hence Brazilian
coffee exports got a start last December when Santos coffee, quoted at
10.5 cents a pound in New York, was equaled or underbid by usually undersold foreign competitors.
Brazil took offsome of the burden by reducing the artificial milreis rate of
Its 15 shilling per sack export tax. The country should, except for taxes, be
able to underbid all competitors by far.
The irony for Brazil is that she now is attempting to find a way to lower
her prices, but.can't do it because of the taxes resulting from artificial pricebolstering methods several years ago.
March 1 1933
2,160
51,916
6,383
60,459.
Approximate deliveries to American mills
during February 1933 y
906
SUMMARY.
29,442
2,317
32,665.
Imports During the Month.:
Storage at End of hlonth.z
1933.
1932.
1931.
1933.
1932.
1931.
January
February
March
April
May
June
July
August
September
October
November
December
53.114
23,377
52,238
53,574
38,866
30,953
34,233
31,355
36.055
61,412
56,859
58,775
47,422
45,453
49,294
47,827
57,391
29,446
42,264
46,825
37,315
58,411
48,040
70,490
67,999
50,617
69,747
60,459
62,905
70,570
62,675
57,849
59,159
53,048
50,721
52,228
49,393
54,465
57,932
62,837
51,814
45,399
47,407
35,497
32,688
37,352
29,921
41,878
36,09949,921
67,275
69,460
Total
Average monthly_ _
76,491
38.246
547,195
45.600
65.103
57.815
45 393
605.919
50.493
Approximate Deliveries
,
to American Mills.)
Approximate Amount of Japes
Silk in Transit at Close
of Month.
1933.
1932.
1931.
1933.
1932,
1931.
46,204
32,665
58,793
45,909
46,761
35,779
32,923
37,486
38,382
59,905
59.694
53,703
43,955
40.548
55,910
54.242
55,383
41,356
45.073
42,161
44,746
46.454
53,819
56,668
50,645
48,432
25,700
28,100
48,500
31,000
28,800
34,800
30,800
31,100
42.200
43,400
42,800
44,700
60,200
51,400
37,700
37,700
21,300
24,800
36,900
33,400
41.800
40,500
53,200
59,700
50,800
53.900
An item bearing on the plan of President Vargas to abolish
the National Coffee Council and create the National Coffee
Department appeared in our issue of Feb. 18, page 1114.
On Feb. 27, Rio de Janeiro advices (United Press) to the
"Herald Tribune" stated:
January
February
March
April
May
JUDO
July
August
September
October
November
December
The organization plan for the newly created National Coffee Department,
providing for a directorate to be composed of three members named by the
Federal government, was approved by the Treasury Department to-day.
The plan includes the establishment of an advisory council composed of
11 members,eight to be from coffee producing states and three to represent
coffee trading associations.
78,889 553,818 594,889
Total
Monthly average 39.435
46,151
49,574
40,958
26,900
40,058
Covered by European manifests Nos 6 to 10 Inclusive, Asiatic man feats Nos.
19 to 3.5 inclusive. y Includes re-exports. z Includes 325 bales held a terminals
at end of month. Stocks at warehouses include National Raw Silk Exchange
certified stocks 2.30 bales.
Cuban Coffee Trade Gains
-Industry Reported as
Having Prospered in Spite of Current Depression.
In its issue of March 5 the New York "Times" reported
the following:
Probably the only industry in Cuba which has prospered during the
present depression is coffee. In 1929 Cuba imported 100,125 sacks, while
in 1932 only 1,363 sacks entered the island. Also, during 1932 coffee
planters of the Province* of Camaguey and Oriente exported 5.968,003 kilos
of coffee, valued at 81,163,921.
In Spanish colonial days thousands of rich coffee plantations flourished
in the uplands of Oriente and Camaguey. These, however, fell into decay,
and from the beginning of the Republic in 1900 until a few years ago little
attention was paid to the coffee industry. In 1920. when the attention of
the island was riveted on sugar, Cuba imported 44,000,000 pounds of coffee
at a cost of $9,583,000.
Brazilian-Belgium Coffee Barter Fails.
Advices as follows were made available Feb. 24 by the
Department of Commerce at Washington:
The Brazilian-Belgium barter agreement relating to the exchange of
coffee for Belgium railway equipment has failed, according to reports published in Brazil, it was stated in advices to the Commerce Department's
Foodstuffs Division from Commercial Attache Carlton Jackson, Rio de
Janeiro.
New duties placed in Belgium on coffee imports, it was reported, have
ncreased the cost of Brazilian coffee to such an extent that the inferior
coffee produced in the Belgian Congo district is being used.
-----
Petroleum and its Products-Major Companies Ready
to Advance Crude Prices if Stabilization is Achieved
-California Prices Cut-East Texas Output Increased-Oklahoma City Field Again Shut Down.
Combining their efforts toward a common end, oil producers and state regulation officers in both Oklahoma and
Texas are seeking ways and means of establishing a firm basis
for crude oil production which will lead to a satisfactory
solution of the present chaos. They are spurred on by
tentative agreements with major companies to increase crude
prices 30% if stabilization is achieved.
R. C. Holmes, president of the Texas Corporation, issued
a statement regarding the price situation, as follows: "It
on April 1, or any date prior to April 1, the authorities in
the States of Texas and Oklahoma shall have fixed the
allowables of crude production in line with reasonable market
requirements and shall have prevented entirely the production of oil in excess of such allowables, the Texas Company
will post a price of 75c. a barrel for 35.0 to 35.0 gravity midcontinent, North Texas and East Texas crude oils, with
proper differentials for gravities above and below, and such
prices in other fields in relation to the above as it is willing
to pay.
Volume 136
Financial Chronicle
1637
"Texas Company's policy as to prices thereafter will
depend upon conditions existent at the time. If oil is being
that prices are soon to be advanced all along the line spread
throughout the trade, and there was a brisk movement in
offered on or after April 10 at less than our postings, we may
consider it necessary in our interest thereafter to buy at the
lowest prevailing prices at which crude is offered.
spot sales, while contract business assumed greater activity.
It is believed here that the vast improvement being
"After making due allowance for estimates of probable
imports and exports and a possible 10% decrease in domestic
gasoline consumption, and allowing for a desirable and
probable inevitable withdrawal from storage by the industry
throughout 1933 because of financial stress, if for no other
reason, it is our opinion that the average daily requirements
of crude production in the United States will be 1,985,348
barrels, and recommend this until some better or possibly
more accurate estimate is determined.
brought about in the crude situation will be immediately
reflected in prices of refined products, which have been at
low levels since the turn of the year. In the local market
it was reported in the trade yesterday that the concession
of 10c. a barrel which has been the rule in sales to oceanships under contract, and that the market will be firmly
held at 75c. a barrel at New York Harbor refineries for
Grade C.
-established now at 0,4c. a gallon for
Kerosene is well
41-43 water white, this being the ruling market quotation.
It is believed, however, that kerosene will be one of the
"This could be accepted as a fair and desirable estimate of
market requirements, and it is desirable that the States, in
whatever way they properly can, should determine among
first refined products to feel any improvement in crude prices,
and that the 53..e. level will be soon resumed. Local com-
themselves the allowables for the various States; and that
each State should determine the proper allocation of the
different pools within such States.
petitive conditions.in New Jersey have grown increasingly
serious, and price cuts by major companies in some instances have reached as high as 3e. a gallon.
"In the meantime, if conservation authorities of Texas and
Oklahoma or elsewhere will accept the co-operation of compe-
Reports from Chicago indicate that consumption of motor
fuels has become a serious consideration in the market, and
that spot sales have fallen off greatly. Low octane gasoline
tent committees representing the oil industries in endeavoring
to arrive at the most equitable basis for allowables, and of a
committee of counsel from the industry to assist in drafting
the necessary conservation laws and commission orders that
may better stand court tests as to validity, I will immediately "
endeavor to get the industry to form such committees with
the hope that we may have fuller and more effective co-operation between the industry and the State authorities in acting
in the joint interests of both.
"The Texas Company has no desire, nor do I believe the
buyers generally of crude have any desire, to buy crude oil
at prices that are ruinous to the producers of crude. If
under existing conditions it is not possible for all industries
to get on a better and more sound basis, certainly it is
desirable that any one industry should do whatever it possibly
can in a lawful way to contribute to an improved condition."
New prices of the Texas Co. in Panhandle Texas are the
same as those recently posted by the Humble Oil & Refining
.
Co. Gulf Coast crude prices, however, are cut 10c. a barrel
by the Texas Co., making oil below 22 gravity 45c., with a
lc, spread for each higher degree of gravity, to 64e. for 40
gravity and above. Conroe crude was cut 10e., the new
prices being 59c. for 35 gravity, with a lc. spread on each
degree, to 64e. for 40 gravity and above.
Effective yesterday, Mar. 10, the Texas Railroad Commission authorized the production of 400,000 barrels daily from
the East Texas Field, this being an increase of 110,000 barrels
from the previous allowable. The new schedule is effective
until June 1, and under the new regulations distribution of
the flow among wells is based one-third each on bottom-hole
pressure, sand thickness, and per well allotment.
The'Oklahoma oil curb tangle, brought to a head by the
military shut
-down of the Oklahoma City Field by order of
Governor Murray, is nearing solution, due to the action of
the Oklahoma House of Representatives in favorably reporting a new proration Bill designed to effectively control Oklahoma s output. The enactment of such a law was held by
'
oil leaders to be necessary to so stabilize the industry ab to
make possible an increase in prices from the present top of
52c. a barrel in the Oklahoma area.
The price cuts in California posted Mar.4 by Standard Oil
Co. of California, and followed by other major companies,
was the first change to be made in the west coast prices
since June 26 1932. The new lists became effective at
7 a.m. on Mar. 5.
was available there this week at 2e. a gallon, a drop of
v
ie.
The banking situation has also had its
effects, the decreased purchasing being felt throughout the
from last week.
retail distributing centers.
Gasoline. Service Station, Tax Included.
New York
$.15 New Orleans
$.135 Cleveland
128
Atlanta
.18 Philadelphia
19 Denver
iS
Baltimore
.135 San Francisco:
13 Detroit
Boston
139
Third grade
.17
145 Ifouston
Buffalo
145 Jacksonville
Above 65 octane-- .180
.195
Chicago
Premium
.216
14 Kansas City
.155
Cincinnati
14
.147 St. Louts
.15 Minneapolis
Kerosene, 41-43s Water White, Tank Car F.O.B,Lot Refinery.
N.Y.(Bayonne)S.05% Chicago
$.02%-.03H New Orleans.ex_ _ __S.03H
North Texas
.03
Los Ang.,ex_ .043-.06
.04H-.0314
Tulsa_
Fuel oil. F.O.B. Refinery or Terminal.
N. Y.(Bayonne)Gulf Coast C
5.60
California 27 plus D
Bunker C
5.75
$.75-1.00 Chicago 18-22 D-4234-.50
Diesel 28-30 D
.60 Philadelphia C
1.65 New Orleans0
.70
Gas oil, F.O.B. Refinery or Terminal.
N. Y.(Bayonne)Tulsa
5.0114
Chicago28 plus G 0...3.0314-.04
3.0154
32-36 00
U. S. Gasoline. Motor (Above 65 Octane), Tank Car Lots, F.O.B. Refinery
N. Y.(Bayonne)
Chicago
N. Y.(Bayonne)
8.04-0414
Standard Oil, N.J.Shell Eastern Pet. .0514 New Orleans.ex. .05,0534
Motor. 60 ocArkansas
04-.044
NewYorktane
Colonial-Beacon- 0534 California
3.05%
.05-.07
Motor. 65 cm07
Los Angeles, ex_ .0454-.07
Crew Lorick
tane
05%
z Texas
0.53. Gulf ports
05-.0534
Motor.standard 0514
.05% Tulsa
05-.055(
Gulf
Stand. Oil. N. Y. 0534
.05)(
Republic+ OR.-- .05% Pennsylvania...
Tide Water Oil Co 0534
Richfield Oil (Cal) 0634
Warner-Quin. Co. 0534
"Etre Cider 5.0534
Gasoline Prices Cut in German Markets.
Berlin advices March 3 are taken as follows from the New
York "Journal of Commerce":
On Monday the price of gasoline in Silesia will be cut one pfennig, in
West Germany two pfennig and in Saxony three pfennig in order to meet
offerings from the outside emanating from Holland.
The cartel hopes to limit this cut to a four week's period, believing that
conditions may be stabilized by that time.
Crude Oil Output Declined During Week Ended March 4
1933, but Continued at a Higher Rate Than in the
Corresponding Period Last Year.
The American Petroleum Institute estimates that the
daily average gross crude oil production for the week ended
March 4 1933 was2,147,900 barrels,compared with 2,192,600
Price changes follow:
March 5.
-Standard Oil Co. of California posted reductions on crude
prices ranging from 6c. to 37c. a barrel. The average reduction was 25c. a
barrel, reducing the base price from the former $1 level to 75c. The price
at Kealeman Hills is 66c. for 33-gravity, with a 2c. advance for each higher
gravity, to a top of 78c. for 39
-gravity and above. The new prices were
met by major companies.
March 6.
-The Texas Co. reduces Gulf Coastal crude oil from Sc. to
13c. a barrel, depending upon locality.
Prices of Typical Gorges per Barrel at Welts.
(All gravities where A. P. I. degrees are not ahown.)
Bradford. Pa
$1.47 Eldorado. Ark., 40
.52
Corning, Pa
.75 Rusk, Tex., 40 and over
.52
Illinois
.62 Salt Creek. Wyo.. 40 and over___ .52
Western Kentucky
.eo Darst Creek
.10-.50
mid-continent. olds.. 40 and
Midland Din., Mich
.70
above
.52 Sunburst. Mont
1.05
Hutchinson, Tex.. 40 and over____ .30 Santa Fe Springs. CARL 40 and OVIW .75
Spindietop, Tex., 40 and over
.52 Huntington, Calif., 26
.75
Winkler, Tex
.so Petrolia, Canada
1.75
Smackover, Ark., 24 and over
.52
•
-STRONGER TONE APPARENT AS TRADE
REFINED PRODUCTS
AWAITS IMPENDING CRUDE PRICE ADVANCES
-BUNKER
FUEL OIL FIRMER-EXPECT RISE IN GASOLINE PRICE
-KEROSENE MARKET ACTIVE.
STRUCTURE
crease of 769,000 barrels in the previous week.
Reports received for the week ended March 4 1933 from
refining companies controlling 90.6% of the 3,856,300 barrel
estimated daily potential refining capacity of the United
A generally stronger tone became apparent during the
last few days in the local refined products market. Belief
of all cracking units, averaged 414,000 barrels daily during
the week.
barrels per day during the preceding week, a daily average
production for the four weeks ended March 4 of 2,117,050
barrels and an average daily output of 2,140,850 barrels
for the week ended March 5 1932.
Stocks of motor fuel at all points declined from 56,721,000
barrels at Feb. 25 1933 to 56,325,000 barrels at March 4,
or a decrease of 396,000 barrels, as compared with an in-
States indicate that 2,024,000 barrels of crude oil daily were
run to the stills operated by those companies, and that they
had in storage at refineries at the end of the week 38,223,000
barrels of gasoline and 124,012,000 barrels of gas and fuel
oil. Gasoline at bulk terminals amounted to 12,490,000
barrels and 1,112,000 barrels were in water-borne transit
Cracked gasoline production by
companies owning 95.4% of the potential charging capacity
in or between districts.
-
Financial Chronicle
1638
The report for the week ended March 4 1933 follows in
detail:
DAILY AVERAGE PRODUCTION OF CRUDE OIL
(Figures In Barrels 01 42 Gallons Each)
476,200
112,550
47,050
46,650
26,400
158,050
59,200
304,450
49,850
32,350
30,750
125,650
32,600
90,600
15,150
32,250
5,850
2,600
37,100
462,600
MC
01
Total
NOVVNOCC..NMNM0.-IM
M
0*
Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas_
West Texas
East Central Texas
East Texas
Southwest Texas
North Louisiana
Arkansas
Coastal Texan
Coastal Louisiana
Eastern (not including Michigan)
Michigan
Wyoming
Montana
Colorado
New Mexico
California
Week
Ended
Feb. 25
1933.
CO
Week
Ended
Mar.4
1933.
Average
4 Weeks
Ended
Mar. 4
1933.
449,900
105,700
43,500
46,350
25,350
157,950
58,850
301.850
49,550
30,150
31,450
131,000
33,150
94,700
14.700
31,500
5,600
2,600
37,100
466,100
Week
Ended
Mar. 5
1932.
418,600
101,600
50,700
47,200
23,600
177,550
54,850
309.900
51,000
27,900
34,000
110,400
27,100
104.650
14,950
37.450
6,200
3,550
37,550
502,100
and spermaceti wax. Refined sperm oil is used principally as a lubricant
for certain types of machinery and in treating textiles and leather. Spermaceti wax is used chiefly by the cosmetic industry in the production of
face creams.
The new rates of duty will become effective April 1 1933.
Slab Zinc Production Exceeded Shipments
During February.
According to the American Zinc Institute, Inc., slab zinc
output in February 1933 amounted to 20,076 short tons, the
highest since April 1932, and compares with 19,828 tons
in January 1933 and 21,474 tons in February 1932. Shipments rose from 15,040 tons in January 1933 to 15,280 tons
in the following month, while in February of last year
21,851 tons of slab zinc were shipped. Inventories at Feb.28
1933 totaled 134,440 short tons as against 129,644 tons a
month earlier and 129,532 tons a year ago. The Institute's
statement follows:
SLAB ZINC STATISTICS (ALL GRADES). 1931, 1932 AND 1933.
(Tons of 2.000 Lbs.)
2.147.900 2.192.600 2.117.050 2.140,850
%
000C000.000WO
..00o,tr.mtomm
ceuir:4coriricOO4
435,000
81,000
270,000
201,000
86,000
406,000
93,000
50,000
33,000
369,000
a Motor
Fuel
Stocks.
Gas and
Fuel Oil
Stocks.
68.1 15,409,000 6,580,000
880,000
60.0 1,774,000
63.7 8,036,000 3,235,000
51.5 5,173,000 2,888,000
48.4 1,303,000 2,116,000
74.9 6,356,000 6,427,000
65.5 1,633,000 2,160,000
63.3
313,000
650,000
23.9 1,520,000
603.000
42.6 14,808,000 98,473,000
Totals week:
Mar. 4 1933
3,856,300 3,532,500 91.6 2,024,000 57.3 56,325,000 124,012,000
Vph on 1 onR _ 2 255 fann 2 522 500 91.6 2.120.000 60.0 All 721_0011 124 7115 non
New Zealand Reduces Recently Increased Duty on
Gasoline.
Retroactively effective to Feb. 9 1932, the New Zealand
Import duty on gasoline has been reduced by id. per imperial
gallon, making the present duty 10d. per imperial gallon
plus the customs surtax of 1-20 of the duty, it is stated in
a cablegram received in the Department of Commerce from
Assistant Trade Commissioner Eugene West, Wellington.
The Department added:
On the above date the import duty had previously been increased by
ad. per imperial gallon from Sd. to Ild, plus the customs surtax.
The Department's announcement was issued March 6.
Texas Oil Allowable Raised to 400,000 Barrels Daily.
The United Press reports in advices from Austin, Tex.,
March 10 that the East Texas oil field was authorized to
Increase its daily allowable production from 290,000 to 400,000 barrels, effective March 10. The United Press adds:
The State Railroad Commission issued the new schedule as effective until
June 1. Under it distribution of flow among wells will be based one-third
each on bottom hole pressure, sand thickness and per well allotment.
The Commission was working on allotments, expected to be put in effect
March 19. Until that time no well will be allowed to produce more than
36 barrels daily.
Tariff on Crude Sperm Oil Reduced by United States
-Duty on Spermaceti Wax Also Lowered,
Effective April 1 1933.
The Tariff Commission announced on March 3 that the
President has approved a report from the Commiqsion
indicating (1) a decrease in the rate of duty on crude sperm
oil from 10 to 5 cents per gallon, (2) no change in the present
rate of 14 cents per gallon on refined sperm oil, and (3) a
decrease in the rate of duty on spermaceti wax from 6 to
33 cents per pound. The Commission's announcement
,
added:
This investigation was instituted in response to an application on behalf
of a domestic refiner of crude sperm oil. Crude sperm oil imports originate
chiefly in Canada, and refined sperm oil and spermaceti wax imports are
principally from the United Kingdom.
Crude sperm oil produced in the United States and Canada is obtained
from sperm whales caught principally in Alaskan and British Columbian
waters. It is the raw material for the joint products-refined sperm oil
Total for yr.. 300.738
Monthly aver_ 25,062
1932.
January
February
March
April
May
June
July
August
September_...._
October
November......
December..__ _
33.235
33,118
31,821
26.672
20,622
19.022
19,266
19.305
20,417
21.374
19,428
19,875
32,737
33,453
30.647
26.765
20,632
19,898
17,020
18,140
19,752
19,809
18,245
18,223
314.514
26,210
41
3
23,680
23,099
26.166
22,404 129,909
21,851 129.532
22,503 129.477
18,032 132.020
18.050 132.575
14.971 134.027
12,841 135.902
16,360 133.153
20,638 125,775
19,152 121.840
615,970 6121.948
615,745 6124,856
31
0
0
0
0
20
0
39
20
20
20
20
22,044
21,752
22,016
20,796
20,850
18,742
18,295
14,514
14,915
17,389
19,753
21,023
24.232
23.118
23.712
20.121
19.237
16.116
16,949
18,017
16,023
10.333
8,640
8,478
170
14
19,339
18,560
17,190
40
0
22,660
23,389
21,970
22,500
6,313
8,562
Total for yr.. 6213,531 6218,517
Monthly aver_ 617,794 618,214
1933.
January
February
619,828
20,076
Unfilled
Orders.
End of
Month.
1
0
0
0
20
0
20
0
0
0
0
0
15,040 6129,644
15,280 134,440
......
N
.0
a Below are set out estimates of total motor fuel stocks on U. S. Bureau of Mines
basis for week of Mar. 4 compared with certain March 1932 Bureau figures:
57,420,000 barrels
A.P.1. estimate of B. of M.basis, week Mar.4 1933_6
64,740.000 barrels
U.S.B. of M. motor fuel stocks, Mar. 1 1932
U.S.B. of M. motor fuel stocks, Mar. 31 1932
66,803,000 barrels
b Estimated to permit comparison with A. P. I. Economies report, which Is on
Bureau of Mines basis.
c Includes 38,223,000 barrels at refineries, 12,490,000 at bulk terminals, 1,112,000
barrels in transit and 4,500,000 barrels of other motor fuel stocks.
145,076
144,389
141.493
143,212
143,049
138.928
131.833
129,701
130,168
130,535
131.016
129,842
woo..10.0wcnam.
Total.
644.700 638,700
144.700 135,000
434,900 424,000
459,300 390,000
315,300 177,700
555,000 542,000
146,000 142,000
89,300
79,000
152,000 138,000
915,100 866,100
%
Daily OyerAverage. ated.
31,064
30,249
35,224
27,418
25,851
27,604
28.460
23,599
20,860
21,181
19,963
23,041
00CAO.C4C40.0.0,0..-•ba
Reporting.
Potential
Rate.
32,522
29,562
32,328
29,137
25,688
23,483
21,365
21,467
21,327
21,548
20,443
21,868
1931.
January
February
March
April
May
June
July
August
September....
October
November
December _ _ _ _
Retorts
Moe.
aShip- Operarg RGorts
pedfor End of During
Export. Month. Month.
.r..COCOCMOCCCM
District.
Stock at
End of
Month.
MMMMMMNN....mv.
Crude Runs
to Stills.
Shipped
Durilly
Month.
OCt'o.-%°Cl
r:
oc;r-mr.,..tc)00.0
cico0..-0,
aomo0
lm
..d•:e604.7uipivi,
c7
Daily Refining Capacity
of Plants.
Produced
During
Month.
Month.
VW
CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS AND GAS AND FUEL
OIL STOCKS, WEEK ENDED MARCH 4 1933.
(Figures in Barrels of 42 Gallons Each)
East coast
Appalachian.-Ind., Ill., Ky- _
Okla.,Kan., MO.
Inland Texas....
Texas Gulf
Louisiana Gulf
No. La.
Rocky Mountain
-Ark.California
March 11 1933
40
30,320
Total 2 mos_
39,904
a Export shipments are Included in total sh pments. b Corrected figure.
-The following statistics for 932 include a few minor year-end adjustments.
Note.
The following table gives a summary of the Institute's statistics for the past three
years.
SLAB ZINC PRODUCTION. 1930-31-32 (TONS OF 2,000 LB.)
1932.
1930.
1931.
358,173
183.940
210,098
Primary zinc from domestic ore by distillation..
23,208
131,188
81,898
Electrylytie
Total
Secondary zinc from ordinary type smelters...
489,361
15,102
291,996
8,742
207,148
6,383
Total Amer.Zinc Inst. monthly statistics. _
Secondary zinc from large graphite retorts.-
504,463
19,747
300,738
12,883
213,531
8,335
Total domestic
Primary zinc from foreign ore
524,210
8,684
313,621
221,866
532,894
313,621
221,866
Total all classes
Czechoslovak Cement Manufacturers Form Cartel.
A statement emanating from the Department of Commerce at Washington March 7 said:
All of the Czechoslovak cement manufacturers have joined in a national
cartel to regulate and apportion production for a period of five years.
according to a report to the Commerce Department's Mineral Division
from Commercial Attache Don C. Bliss, Prague.
A committee has been established by the cartel to fix sales quotas and
regulate the price range, the report states. For the present the headquarters of the cartel will be in Prague where the committee is now located,
and it is believed that this office will later be converted into a sales bureau
for the cartel.
It is pointed out that the domestic market for cement has suffered recently from severe price cutting and cement manufacturers in Czechoslovakia believe the formation of the cartel will tend to consolidate their
market, it is reported.
Switzerland Establishes Import Quota Restrictions on
Rubber Footwear and Tractor Chassis.
The Swiss Government has established import quota restrictions on rubber footwear and tractor chassis, effective
March 1 1933, said a cablegram received in the Department
of Commerce from Commerical Attache Charles E. Lyon
at Berne. On Feb. 25 the Department, in indicating this,
stated:
Under the Swiss import control system, the quotas allotted to individual
countries are not made public, but import permits are required for each
shipment, and, when the quotas are considered filled, further imports are
either prohibited or made subject to higher import duties.
Volume 136
Financial Chronicle
Consumers Purchase Large Tonnage of Lead-Zinc,
Lead, Tin and Silver Advance.
"Metal and Mineral Markets" in its issue for March 9
reports that the financial crisis that led to the emergency
measures calling for the temporary cessation of all banking
operations seems to have cleared the atmosphere so far as
basic commodities are concerned. Most producers of nonferrous metals now expect at least a moderate amount of
currency inflation, and, subsequently, a higher trading
level. That consumers shared this view was evident from
the sudden willingness to accumulate metals in quantity
for near-by and future delivery. Demand for lead was
particularly active, the sales for the week being the largest
in almost two years. Speculators were in the market for
copper, but first hands refused to change their policy of
restricting offerings to actual consumers of the metal.
Leading producers of copper were satisfied, under present
conditions, to hold on to their accumulations. A moderate
tonnage of prompt-shipment zinc changed hands at higher
prices, with futures virtually unobtainable at current
quotations. Absence of foreign exchange quotations hampered trading in tin and silver, though prices for both of
these metals moved upward, the latter settling at 293sc.
/
per ounce against 263z2c. a week ago. Lead also advanced.
The same publication says:
Cautious Selling of Copper.
Owing to prevailing banking conditions. operators in domestic copper
were inclined last week to withdraw from the market, apparently believing
a waiting attitude desirable until the financial situation has improved.
Fabricators were understood to be of the same frame of mind, offering
material in only moderato quantities. The net result of these tactics
was that business in tho industry during the seven-day period varied but
slightly in volume from that of the last few weeks. Most of the metal
booked was sold early In the week, although sales were sufficient during
the remainder of the period to establish a quotational basis for the various
trading days. This basis continued at the unchanged level of 5c. delivered,
Connecticut. However, as far as producers were concerned the feeling
prevailed that any move in financial centers that might oven hint at inflation would probably develop a higher trading basis.
Sales in the foreign market were in fair volume again, and were said to
be influenced by a tendency on the part of some buyers to convert funds
Into commodities. Buying by Japanese interests, which has seemingly
fallen off in this country, was on a slightly larger scale abroad.
Effective March 1, leading fabricators announced a reduction In base
prices of copper products amounting to Mc. per pound.
Lead Price Advanced.
Buyers of lead, many of whom had been restricting purchases to a
minimum for weeks because of the uncertainty regarding the outlook, decided that the developments In the banking crisis pointed toward an unlift
in commodity values, and an active call for the metal set in on Monday.
The sales total for the week just closed was most impressive, for the volume
of business exceeded 11,500 tons, the largest weekly total since June 1931.
Most of the metal sold was for March and April shipment. Producers
were not sellers in the more forward positions. The buying was well distributed among the important outlets for lead. The price of lead was
maintained on the 3c. Now York and 2.875c. St. Louis basis until yesterday, when loading sellers announced an advance to 3.25c. New York and
3.125c. St. Louis. The market for lead has held at 3c., New York, since
Nov. 18 1932.
The leading operator In the Middle West was the principal seller during
the week that ended yesterday. Most other sellers offered lead sparingly
In the last few days, restricting sales to current intake only. More lead
was sold in the last week than during the entire month of February. Producers hope that nothing will occur to make for a period of wide fluctuation
In prices.
Restricted Sales of Zinc.
Demand for zinc, common with that for lead and other non-ferrous
metals, increased markedly as the last week came to a close. Sellers,
however, restricted sales, even in the face of improved prices, and some
producers withdrew entirely from the market: The price basis, which
stood at 2.675c. ®2.70c. at the beginning of the period, closed yesterday
at the nominal level of 2.825c., with little metal available at that figure.
Sales of zinc during the calendar week ended March 4 totaled about
1,700 tons. Statistics of the industry, issued on Tuesday,show an Increase
of 4,796 tons in stocks during February. the total being 134,440 tons;
this total compares with a total of 129,644 tons In January.
Tin Waits on Sterling.
Trading in tin In the domestic market was virtually suspended, owing
to the bank holiday. Demand for tin was fairly active. On Friday
last the market saw a range for Straits tin of 23.75c. to 23.85c. Since then
prices have been wholly nominal, ranging from 24.50c. to 25c. per pound,
prompt shipment.
Chinese tin.99%, prompt shipment,closed as follows: March 2, 22.50c.;
March 3, 22.70c. Quotations for March 4, 6, 7 and 8 are not available.
Steel Production Declines to 15% of Capacity-Prices
Continue Unchanged.
The country-wide bank holiday has had a marked effect
on the volume of steel business and production, reports the
"Iron Ago" of March 9. Ingot output has declined to a
national average of 15% from 17% last week, but business
has been so abruptly interrupted that mills are rolling mainly
on orders placed a week or so ago, indicating a further contraction in operations unless an emergency banking system
is speedily placed in effect, continues the "Ago," which
further goes on to say:
One of the chief obstacles to the placing of steel orders is the inability
of buyers to finance freight charges, but this may be overcome within a
few days if the railroads agree to accept scrip. Some metal-working plants
1639
have closed down because of lack of funds with which to meet payrolls and
other obligations. From such sources there have been suspensions of
steel orders. The automobile industry has also held up considerable tonnage, but in the main consumers are taking steel that Is ready for shipment, most of which Is for work in process In their shops.
Despite the drastic character of the President's bank proclamation, there
Is a feeling of reassurance in the iron and steel trade and a belief that, once
an emergency banking system has been established, business will proceed
with greater acceleration than has been in evidence thus far in the year.
Although the outcome of the present interregnum cannot be fully foreseen,
there are expectations that some form of inflation will occur which will
give a breathing spell to those whose businesses have suffered greatly because
of ruinously low prices. The automobile industry is of the opinion that its
sales will increase because of a widespread desire to spend the scrip that will
be issued rather than hold it.
Although foreign exchange markets are suspended, with consequent
toppago of nearly all negotiations for steel to be exported or imported, the
Japanese have inquired for 1,000 tons of tin plate and 500 tons or more
of tin plate wasters for prompt shipment, presumably having acquired
American dollars prior to the bank closing.
Automobile production has been sharply reduced by the bank holiday,
and plans for the immediate future hinge largely on the ability of dealers
to finance the purchase of cars, which are usually paid for in cash as they
leave the factory. One of the smaller automobile companies has entirely
suspended work, but others are continuing on restricted schedules, an
exception being the Ford Motor Co., whose output of 1,000 cars a day five
days a week has thus far been continued. The Chevrolet Motor Co..
whose orders have been the mainstay of business for some steel companies,
has suspended a considerable tonnage that was to have been shipped this
week.
The taking of bids on construction work has been postponed in a number
of instances because bidders cannot furnish the required certified checks.
Fabricated structural steel lettings in the week dropped to 10,250 tons,
about half the total of the preceding week, while new projects calling for
1,600 tons are the smallest since the first week of January. Application has
been made by a group of New York promoters to the Reconstruction
Finance Corporation for a loan of $100,000,000 for initial work on a bridge
across the Hudson River at Fifty-seventh Street, New York, to accomodate
railroad and highway travel. Approval of the plans is expected shortly
from the War Department The bridge will require about 360,000 tons of
steel, or double that taken by the George Washington Bridge and will
require five years to build, giving employment to more than 20,000 men.
Announcement of sheet prices for the second quarter by the American
Sheet & Tin Plato Co. has been followed by adoption by other companies of
the same prices, which are $1 a ton higher on some grades, but on No. 10
hot-rolled sheets the new quotation is $1 a ton below recently published
quotations. New extras for gage and width have been put into effect
on hot-rolled sheets. Because of the strengthening of sheet prices, makers
of other products that have been affected by weakness are encouraged to
stiffen their quotations, but the main influence at the moment is the expectation that all commodity prices may develop a stronger tone under
Inflationary money conditions. In the non-ferrous metal markets sales for
future delivery are not being encouraged because of the uncertainty as to
the outcome of the present situation upon prices. Scrap markets preserve
a firm tone notwithstanding the almost complete stoppage of buying.
There were gains in production of pig iron and steel ingots in February.
amounting to 7.8% over January for pig iron and 14.7% for ingots. The
daily rate of pig Iron production last month was 19.798 gross tons against
18,348 tons in January, although there was no increase In the number of
furnaces in blast. Forty-five were in service on March 1, the same number
as on Feb. 1. Steel ingot production last month, on a daily basis, was
the largest since April 1932, and, at 20.39% of rated capacity, was above
the average for all of last year.
TIIE "IRON AGE" COMPOSITE PRICES.
Finished Steel.
Mar.17 1933, I.9230. a Lb.
[Based on steel bars, beams, tank plates;
One week ago
wire rails black pipe and sheets.
1 923e
One month ago
1 923c.l These products make 85% of the
One year ago
i.933c.1 united States output.
Low.
High
1933
1.923c. Jan. 17
1 9480. Jan. 3
1932
1.926o. Feb.
1.977c. Oct. 4
1931
2.037e. Jan. 13
1.945e. Dec. 29
1930
2 273o. Jan. 7
2.018c, Dec. 9
1920
2.283e. Oct. 29
2.317c. Apr. 2
1928
2.2170. July 17
2 2860. Dec. 11
1927
2.402e. Jan. 4
2.212e. Nov. 1
Pig Iron.
Mar. 7 1933, $13.56 a Gross Ton.
Based on average of basic Iron at Valley
One week ago
$13.56 furnace foundry Irons at Chicago
One month ago
13.56 Philadelphia, Buffalo, Valley and MrOne year ago
mingharn.
14.47
If
Low.
1933
$13.56 Jan. 3
$13.56 Jan. 3
1932
14.81 Jan. 5
13.56 Dec. 6
1031
15.90 Jan. 6
15.79 Dec. 15
1930
18.21 Jan. 7
15.90 Dec. 16
1929
18.71 May 14
18.21 Dec. 17
1928
18.59 Nov. 27
17.04 July 24
1927
19.71 Jan. 4
17.54 Nov. 1
Scrap.
Steel
Mar. 7 1933, $6.83 a Gross Ton.
Based on No. 1 heavy melting steel
One week ago
56.83 Quotations at Pittsburgh, Philadelphia
One month ago
6.83 and Chicago.
8.25
One year ago
High.
Low.
1933
$8.83 Jan. 10
$8.75 Jan. 3
1932
8.50 Jan. 12
6.42 July 5
1931
11.33 Jan. 6
7.62 Dec. 29
1930
15.00 Feb. 18
11.25 Dec. 9
1929
17.58 Jan. 29
14.08 Dec. 3
1928
16.50 Dec. 31
13.08 July 2
1927
15. 25 Jan. 11
13.08 Nov. 22
With bank holidays and restrictions in many States tending to paralyze trade, and industry marking time until after
the inauguration for further definition of the new administration's business policies, iron and steel demand was approaching a standstill during the past week, states "Steel"
of Cleveland, in its issue of March 6, which further goes on
to say:
Though order cancellations thus far have been comparatively light.
shipments continuing to consumers with favorable credit ratings, a notable
lack of new purchasing reflects the Inability of the majority of consumers
to finance operations on 5% or less of their cash capital. This situation has
reduced steel ingot production 2 more points to 15%•
Among steelmakers the belief prevails that the very sharpness of the
banking stringency carries with it some assurance that it will be speedily
remedied, if necessary by Federal guarantees of bank deposits. Some
1640
Financial Chronicle
efforts now are being made to induce banks to modify their limitations for
the withdrawal of funds to finance material purchases.
As automotive manufacture has been the only outstanding industryrecently in steel consumption, the effect appears relatively more serious in
that direction than elsewhere. Some sheet and strip mills operating almost
exclusively on automotive specifications were practically idle during the
week; steel bar releases are down 50%; nut and bolt orders off more than
25%.
A further substantial gain in pig iron production in February carries the
daily average output to 19,752 gross tons, up 7.6% from January, though
the month's total, due to the fewer number of days, was only 553,067 tons,
compared with 568,785 tons. A net loss of one stack, in the merchant
class, left 44 in blast at the close of February. The operating rate for
the month was 14%;for January, 13.
/s. Action on finished steel prices indicate there will be no widespread revision for second quarter, but stronger efforts to steady the market at present
levels. Leading sheetmakers have put in effect new schedules, which show
little change, except an advance of $I a ton in hot-rolled and a reduction
of $1 in heavy cold-rolled. Large railroad spikes have been marked down
$5 a ton, relaying rails $1 to $4 a ton. Wire rod and wire prices have been
reaffirmed.
The market for structural shapes, with awards for the week 9,800 tons,
presents an unbalanced appearance, the small number of jobs being either
at the bottom or top of the range in tonnage, and the flow of medium-size
projects notably lacking. For the New York Central's New York warehouse terminal 2,600 tons of shapes and 2,250 tons of concrete bars have
been placed;2,250 tons ofshapes have been awarded for a Reading Railroad
bridge at Rupert. Pa.: 2,600 tons for a naval hospital at Philadelphia.
The Pennsylvania RR. will issue an inquiry shortly for 10,000 to 15,000
tons of miscellaneous steel requirements for second quarter. Rail inquiries
are in abeyance. Utilities and municipalities are delaying pipe purchases,
though additional loans by the Reconstruction Finance Corporation are adding considerably to the tonnage to be released for public construction in
the spring. Tank purchases by two oil refining companies require 3,400
tons of plates.
Pig iron sales are down sharply, due to inability of many small foundries
to finance purchases. A merchant stack in the Pittsburgh district has been
banked. Italy has made another purchase of 10,000 tons of scrap.
"Steel's" finished steel composite this week is UP 20 cents to $45.60, and
the iron and steel composite is up 4 cents to $28.35, mainly on sheet price
adjustments. The scrap composite has advanced 8 cents to $6.41, due to
strengthening in open-hearth grades at Pittsburgh.
Steel ingot production for the week ended March 6, was
and 17% of capacity, according to the
between 16
"Wall Street Journal" of March 8, which adds:
This compares with about 18%% in the preceding week and with 20%
two weeks ago. U. S. Steel is credited with a rate of 153 %, the same as
the week before. Two weeks ago the corporation was at a shade over 16%.
Leading independents are placed at 18% %, against a little under 21% in
the previous week and 23% two weeks ago.
Small Gain in Steel Production.
The American Iron & Steel Institute reports steel ingot
production in February at 1,065,080 tons, an increase of
58,783 tons over the previous month, when 1,006,297 tons
were produced. During February 1932 the output totaled
1,457,710 tons. For the 24 working days in February
approximate daily production was 44,378 tons, while for
the 26 working days in January daily output averaged only
38,704 tons. In February 1932, which month contained
25 working days, output per day approximated 56,133 tons.
Below we show the monthly figures as reported by the
Institute since January 1932:
MONTHLY PRODUCTION OF STEEL INGOTS. JANUARY 1932 TO
-GROSS TONS.
FEBRUARY 1933
Reported by companies which made 95.33% of the open-hearth and Bessemer
steel Ingot production in 1931.
Menthe.
OpenHearth.
Calculated No.of
Monthly
Monthly WorkOutput
Bessemer. Companies Output All lay
Reportiny. Companies. Days.
Approx. per
Daily
Cent
Output OperaAil Co.. tion.a
1932.
Jan..._..._
Feb
1.230,661
1,232,568
180.633
157.067
1,391,294
1.389.835
1,459,450
1,457.710
28
25
56,133
58,308
25.98
26.98
2 mos
2,463,229
317,700
2,780,929
2,917,160
51
57,199
March 11 1933
UNFILLED ORDERS OF SUBSIDIARIES OF U. S. STEEL CORPORATION.
End of
Mon h.
1933.
Total.. _
1933.
Jan
Feb
27
28
26
26
25
27
26
26
28
28
52,187
47,625
42,540
34.511
31.701
30.830
87.502
41,098
89,031
32,485
24.13
22.02
19.67
15.96
14.66
14.26
17.34
19.00
18.05
15.02
10,954.937 1,529.220 12,484,157 13,095,727 312
41,973
19.41
38,704
44,378
17.78
20.39
1.149.307
1.036,227
950.785
755,123
652.850
696,206
804.556
885.773
838,5.59
722,522
850.303
888,560
193,944
144,197
103.593
100,249
102,872
97,323
124,970
132.876
128,844
82.852
109.000
126,781
1.343.251
1,180,424
1,054.378
855,372
755.522
793,529
929,526
1,018.649
967,403
805.174
959,303
1,015,341
1.409.054
1,238,250
1,106,030
897.275
792,533
832,402
975,061
1,068,550
1,014,794
844.618
1,008,297
1,065,080
26
24
41,428 19.03
235,781 1,974,644 2.071,377 50
a The figures of "per cent of operation" are based on the annual catee ty as of
67,473,630 gross tons for Bessemer and open-hearth steel Ingots.
Dee. 31 1931 of
2 mos_ _
1,738,863
Steel Backlog Again at New Low.
The United States Steel Corp. reports unfilled orders on
the books of its subsidiaries at Feb. 28 at only 1,854,200,
the lowest ever recorded. The tonnage at Jan. 31, which
was the lowest Up to that date, amounted to 1,898,644 tons,
44,444 tons above the present figure. At Feb. 29 a year
ago the corporation reported a backlog of 2,545,629 tons.
Below are furnished the monthly figures since January 1928.
Previous figures appeared in the "Chronicle" of April 14
1928, page 2243.
1931.
2,648,150
2,545,629
2,472,413
2,326,926
2,177.162
2,034,768
1,966,302
1,969,595
1,98.5,090
1,997,040
1,968,301
1.968.140
4,132,351
3,965,194
3,995,330
3,897,729
3,620,452
3,479,323
3.404,816
3,169,457
2,144,833
3,119.432
3,933,891
2.735.353
1930.
1929.
4,468,710 4,109,487
4,479,748 4,144,341
4,570,653 4,410,718
4,354,220 4,427,763
4,059,227 4,304,167
3,988,064 4,256,910
4,022,055 4,088,177
3,580,204 3,658,211
3,424,338 3,902,581
3,481,763 4,086,562
3,639,636 4,125,345
3.943.596 4.417.193
1928.
4,275,947
4,398,1139
4,335,206
3,872,133
3,416,822
3,637,009
3,570,927
3,624,043
3,698,368
3,751,030
3,643,000
3.976.712
February Pig Iron Production at a Higher Rate.
Production of coke pig iron in February totaled 554,330
gross tons, compared with the January figure of 568,785
tons, announces the "Iron Age" of March 9. The February
daily rate of 19,798 tons went up 7.8% from the January
rate of 18,348 tons daily. The "Age" further reports as
follows:
There were 45 furnaces in blast on March 1, making iron at the rate of
18,910 tons daily, compared with the same number of active units on
Feb. 1, but with a daily operating rate of 18,820 tons. Furnace changes
during the month were few. Four furnaces were blown in and four blown
out or banked. The Steel Corporation took off one unit. Independent
steel companies put two furnaces in and two out, and merchant companies
added two furnaces and put one out.
Among the units placed in operation are: Betty, of the Republic Steel
Corp.; Portsmouth. of the Wheeling Steel Corp.; Sheridan, of the Lavino
Furnace Co., and one Woodward Iron Co. furnace. Furnaces blown out
or banked Include: Ashland, of the American Rolling Mill Co.; one Ohio,
of the Carnegie Steel Co.; one Shenango, of the Shenango Furnace CO..
and City No. 2, of the Sloss-Sheffield Steel & Iron CO.
PRODUCTION OF COKE PIG IRON AND OF FERROMANGANESE,
(Grow Ton...)
MY iron.:
Perromonganeds.y
1933.
1932.
568.765
554,330
January
February
March
April
May
June
972.784
964,280
967.235
852.897
783,554
628,064
Half year
July
August
September
October
November
December
1933.
1932.
8.810
8,591
5,168,814
572.296
530,578
592,589
644,81 3
,
631,280
546.080
11,250
4,010
4,900
481
5,219
7,702
83,562
2.299
3,414
2,212
2,802
5,746
7.807
Year
8,686,443
57,342
x These totals do not include charcoal pig iron. The 1931 production of this
iron was 46,213 gross tons. y Included in pig Iron figures.
DAILY RATE OF PIG IRON PRODUCTION BY MONTHS
-GROSS TONS.
Steel
Met
Works chants • Total
Steel
Met- Total
Works chants •
1931
46.883 9,416 55,299 February
January
25.000
49,618 11.332 60.950 March
February
24,044
54.975 11,481 65,556 April
March
23.143
April
63.878 13.439 67,317 May
20,618
61.113 13.212 64.325 June
May
14.845
43.413 11.209 54.621 July
June
15,132
36.189 12.012 47.201 August
July
14.045
31,739 9,569 41,308 September
August
18.540
29.979 8,985 38,964 October
September
16,514
30.797 7.051 37.848 November____
October
18,607
31,024 5,758 36.782 December
November
13,941
193324,847 6,778 31.625
December
January
193215.746
25.124 6.256 31,380 February
16 935
January
•Includes pig iron made for the market by steel companies.
7,251
7,157
5.287
4,658
6,090
3,329
3,070
3,213
4,286
4,435
3,674
33.251
31,201
28,430
25,276
20,935
18,461
17,115
19,753
20,800
21,042
17,815
2,602 18,348
2,863 19,798
DAILY AVERAGE PRODUCTION OF COKE PIG IRON IN THE UNITED
STATES BY MONTHS SINCE JAN. 1 1928
-GROSS TONS.
26.45
March-....
April
May
June
July
Aug
Sept
Oct
Nov
Dec
1932.
Januarlr --- 1,898,644
Februaj __ 1,854,200
7
March_
AprilMay _
June _
July_
August
Septem ber
.
Octobet
Nevem Der _
Decem per
1928.
January
February
March
April
May
June
First six months_ _
July
August
September
October
November
December
12 mew averarre
1929.
1930.
1931.
1932.
1933.
92,573
100.004
103,215
106,183
105.931
102,733
101,763
99,091
101,180
102,077
108.832
110,084
108.705
103.382
111,044
114,507
119.822
122.087
125,745
123,908
119,564
122.100
121,151
118.585
115.745
106,047
91,513
115.851
91,209
101,390
104.715
106.062
104,283
97.804
100,891
85,146
81.417
75.890
69.831
62,237
83,732
86.025
55,299
60,950
65,556
67.317
64,325
54,621
61,356
47,201
41,308
38,964
37.848
36,782
31,625
50.060
31,380
33,251
31,201
28,430
25,276
20,935
28.412
18,461
17.115
19,763
20,800
21.012
17.615
23 772
18.348
19,798
Decline in Weekly Production of Bituminous Coal
and Anthracite Accounted for in Part to the
Observance of Washington's Birthday.
After two weeks of increased activity, production of soft
coal declined sharply in the week ended Feb. 25 1933,falling
a little below that in the corresponding week last year, reports the United States Bureau of Mines, Department of
Commerce. The total output is estimated at 6,100,000
net tons, a decrease of 1,420,000 tons, or 18.9%, from the
week of Feb. 11. A small part of this loss is accounted for
by the observance of Washington's Birthday in some sections of the country.
Anthracite production during the week ended Feb. 25 is
estimated at 849,000 net tons, a decrease of 430,000 tons, or
Financial Chronicle
Volume 136
1641
33.6%,from the output in the preceding week and of 195,000
tons from the corresponding week of 1932.
ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
COKE (NET TONS).
Week Ended
Coal Year to Date.
Feb. 25 Feb. 18 1 Feb.27
1933.c1
1933.d
1932.
1932-33. I 1931-32. 1 1929-30.
Week Ended
.State.
Feb. 18 '33. Feb. 11 '33. Feb. 20 '32. Feb.2131.
176,000
92.000
156,000
924,000
369,000
90,000
168,000
667,000
224,000
34,000
12,000
73,000
31,000
83,000
417,000
1,630,000
80,000
12,000
104,000
195,000
42,000
1,535,000
313,000
85.000
Other States
Total bituminous coal
Pennsylvania anthracite
Total coal
Bituminous coal:a
I
I
1
Weekly total_ _ 6,100,000 7,520,000 6,332.000 269,704,000329,390,000479,733,000
Daily average.. 1,034,000 1,253,0001,092,000
971,000, 1,184,000 1,723,000
Pa. anthracite:b
Weekly total__ 849,000 1,279,000 1,044,000 44,433,0001 50,819,000 67,764,000
,
Daily average_ 154,400 213,200 189,800
161.900
185,100
246,900
Beehive coke:
Weekly total__
22,800 24,100, 21,200,
872,100, 5,447.400
670,800
Daily average_
3,800
19,317
4,0171
3,5331
2,379
3,0931
a Includes lignite, coal made into coke, Inca sales and colliery fuel. b Includes
Sullivan County, washery and dredge coal, local sales and colliery fuel. c Subject
to revision. d Revised.
ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS).
Alabama
Arkansas and Oklahoma
Colorado
Illinois
Indiana
Iowa
Kansas and Missouri
Kentucky-Eastern
Western
Maryland
Michigan
Montana
New Mexico
North Dakota
Ohio
Pennsylvania (bituminous)
Tennessee
Texas
Utah
Virginia
Washington
West Virginia-Southern a
Northern b
Wyoming
Week Ended
Feb. 18 '33. Feb. 11 '33. Feb. 20 '32. Feb.21 '31'
195,000
89.000
213,000
1,103,000
349,000
98,000
191,000
643,000
299,000
30,000
9,000
61,000
33,000
60,000
437,000
1,575,000
84,000
12,000
101,000
220,000
34,000
1,489,000
314,000
91,000
160,000
46,000
148,000
1,031,000
290,000
87.000
140,000
382,000
165,000
38.000
11,000
58,000
25,000
43,000
395.000
1,500,000
65,000
12,000
80,000
161,000
42,000
1.205.000
438,000
102.000
265,000
45,000
128,000
1,008,000
341,000
73,000
111,000
608,000
189,000
43,000
16,000
47,000
29,000
31,000
431,000
2,202,000
110,000
12,000
60,000
189,000
40,000
1,376,000
543,000
88,000
8,000
6,000
6,000
3,000
7,520,000
1,279,000
7,736,000
1,240.000
6,630,000
874,000
7,988,000
1,211,000
8,799.000
a Includes operations on the N.dc W.,C. Os
b Rest of State, including Panhandle.
8.976.000 7.504,000 9,199,000
, Virginian, K.& M.and B.C.&G.
Average Daily Production of Bituminous Coal and
Anthracite Higher in February.
According to the United States Bureau of Mines, Department of Commerce, preliminary estimates for the
month of February 1933 show that for this period average
daily production of bituminous coal was 1,139,000 net
tons, as compared with 1,070,000 tons per day in the preceding month and 1,130,000 tons daily in the corresponding
period in 1932. The average daily output of anthracite
amounted to 181,800 net tons, as against 152,300 tons in
January 1933 and 164,000 tons in February of last year.
The Bureau's statement follows:
Total for
No. of Average per Cal. Year
Month
Working Working Day to Dale
(Net Tons). Days. (Net Tons). (Net Tons).
February 1933 (preliminary):
Bituminous coal
27,220,000
23.9
1,139,000 54,280,000
Anthracite
4,273,000
23.5
181,800
8,080,000
Beehive coke
24.0
84,500
3,521
166,400
January 1933 (revised):
Bituminous coal
25.3
1,070,000
27,060,000
25.0
Anthracite
3,807,000
152,300
Beehive coke
81,900
26.0
3,150
February 1932:
Bituminous coal
28,013,000
24.8
1,130,000 55,905,000
24.5
164.000
7,916.000
Anthracite
4,019.000
Beehive coke
25.0
3,432
85,800
173,700
Note.
-The preliminary estimates for the latest month shown are subject to
slight revisions, which will be issued In the Weekly Coal Report. All current estimates will later be adjusted to agree with results of the complete canvass of Productions made at the end of the calendar year.
Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ending March 8, as reported
by the Federal Reserve banks, was $3,619,000,000, an
increase of $1,034,000,000 compared with the preceding
week and of $1,891,000,000 compared with the corresponding week in 1932. After noting these facts, the Federal
Reserve Board proceeds as follows:
On March 8 total Reserve bank credit amounted to 33,644,000,000, an
Increase of $708,000,000 for the week. This increase is largely accounted
for by increases of $818,000,000 in money in circulation and $26,000,000
In unexpended capital funds, non-member deposits, &c., and a decrease
of $101,000,000 in monetary gold stock,•offset in part by a decrease of
$238,000,000 in member bank reserve balances.
Bills discounted Increased $492,000,000 at the Federal Reserve Bank of
New York, $70,000,000 at Chicago, 539.000.000 at Cleveland, 525.000,000
at San Francisco and $702,000,000 at all Federal Reserve banks. The
System's holdings of bills bought in open market increased 533,000,000.
while holdings of United States bonds increased 55,000,000 and those of
Treasury certificates and bills $39,000,000.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
Bank credit outstanding and certain other items not included
in the condition statement,such as monetary gold stocks and
money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition of the different items, was published in the May 31 1930 issue of the
"Chronicle" on page 3797.
The statement in full for the week ended March 8, in
comparison with the preceding week and with the corresponding date last year, will be found on subsequent pages, namely,
1701 and 1702.
Changes in the amount of reserve bank credit outstanding
and in related items during the week and the year ending
March 8 1933, were as follows:
increase (1-) or Decrease (-)
Since
Mar. 8 1933. Mar. 1 1933. Mar. 9 1932.
Bills discounted
Bills bought
U. S. Government securities
Other Reserve bank credit
1 414,000,000 +702,000,000 +666,000,000
417,000,000 +33,000,000 +279,000,000
1,881,000,000 +45,000,000 +1,096,000,000
-68.000,000 -72,000,000
-94,000,000
TOTAL RES'VE BANK CREDIT-3,644.000,000 +708,000,000 +1.946,000.000
4 243,000,000 -101,000,000 -119,000.000
Monetary gold stock
1,913,000,000 -2,000,000 +138,000.000
Treasury currency adjusted
7 538.000,000 +818,000.000 +1,993,000,000
Money in circulation
1 800,000,000 -238.000,000 -110,000.000
Member bank reserve balances
Unexpended capital funds, non-mem462,000,000 +26,000,000
+81,000,000
ber deposits, do
Complete Returns of the Member Banks of the Federa
Reserve System for the Preceding Week.
As explained above, the statements for the New York
and Chicago member banks are now given out on Thursday,
simultaneously with the figures for the Reserve banks themselves and covering the same week, instead of being held
until the following Monday, before which time the statistics
covering the entire body of reporting member banks in 101
cities cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with the close of business on March 1.
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on March 1 shows decreases for the week of
$434,000,000 in loans and investments, 5693.000.000 in net demand deposits. $211,000,000 in time deposits and $215,000,000 in reserve balances
with the Federal Reserve banks, and increases of $358,000,000 in borrowings
from Federal Reserve banks and $106,000,000 in cash in vault.
Loans on securities increased 819.000,000 at reporting member banks in
the New York district, $17,000,000 in the Boston district and 235,000,000
at all reporting member banks. "All other" loans declined $214,000,000
in the New York district, $20,000,000 in the Chicago district, $14,000,000
In the Boston district,$12,000,000 in the Cleveland district and $273,000,000
at all reporting banks.
Holdings of United States Government securities declined $116.000.000
in the New York district, $41,000,000 in the Cleveland district, 527.000,000
In the Chicago district, and $207,000,000 at all reporting member banks.
Holdings of other securities increased $22,000,000 in the New York district
and $11,000,000 at all reporting banks.
Borrowings of weekly reporting member banks from Federal Reserve
banks aggregated 2488,000,000 on March 1. the principal changes for the
week being increases of $205,000,000 at the Federal Reserve Bank of New
York, 567.000,000 at Philadelphia, $30,000,000 at Cleveland, $21,000,000
at Richmond and $20.000,000 at San Francisco.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ending
March 1 1933, follows:
increase (+) or Decrease (-)
Since
Mar. 1 1933.
Feb. 211933. Mar. 2 1932.
Loans and inveetments-total_ _ _17,823,000.000
--434010.000 --1,700.000.000
Loans-total
9.627,000,060
-238.000,000 -2.961,000,000
4,234,000,000
5,393,000.000
8,196,000,000
+35,000,000 -1,206,000,000
--273.000,000 --1,755,000,000
-196.000,000 +1,261.000,000
U. S. Government securities.... 4,908.000,000
Other securities
3,288,000,000
Reserve with F. R. banks
1,599.000,000
Cash in vault
389,000,000
Net demand deposits
10.593,000,000
Time deposits
5,288,000,000
Government deposits
90,000.000
Due from banks
866,000,000
Due to banks
2,199,000,000
Borrowings from F.R.banks
488,000,000
-207,000,000 +1,166,000,000
+11,000,000
+95,000,000
-215,000,000 +168,000,000
+106,000,000 +183,000,000
-693,000,000 -410,000,000
-211,000,000 -412,000.000
-58,000,000 --135,000,000
-46,000,000
-421,000,000
-579,000,000 -187,000.000
1-14,000.000
1-358,000A000
On securities
All other
Investments-total
1642
Financial Chronicle
Ambassador Edge Asks France to Pay Debts— United
States Envoy in Farewell Interview With Paris
Journalists Points Way to Revision—Ambassador
Asserts Honoring of Obligations Is Only Path to
New Terms.
Expressing the "earnest hope" that France would pay the
deferred debt instalment, Ambassador Edge of the United
States in a farewell interview with French newspapermen
at Paris on March 3 said a number of things he had originally
planned to say at the Washington's Birthday dinner in the
French city according to Paris advices March 3 to the New
York "Times" which continued:
On that night, to avoid discourtesy to Ambassador Claude!, who had
just talked with President-elect Roosevelt, and to former Premier Herriot,
who was a guest of honor, the Ambassador deleted controversial matter
from his speech. However, he stated frankly afterward that he felt the
things he meant to say should be said not only in fairness to the United
States but also as a means of preventing false optimism in France.
Asks Some Compensation.
Consequently Ambassador Edge had been looking for the opportunity
to give what he called "my view of tile American debt attitude," and
when several French journalists requested a final interview he took
advantage of the chance to say what it was known he had had in mind
for a long time.
The Ambassador stated that in the first place the clue to any satisfactory settlement of the war debt problem lay in some form of compensation. Ile cited the desperate employment and agricultural situation in
the United States and said it had brought about a state of mind that
was not conducive to any one-sided solution.
"For instance," Le Temps quotes the Ambassador as saying, "it cannot
reasonably be expected that the American people will consent to any
material reduction of a debt already reduced almost 50% while various
trade irritants remained unadjusted.
Compensation is not necessarily
confined to gold transfers."
Mr. Edge went on to say he considered a quick and definite solution
of the debt problem imperative and that he doubted the wisdom of a
further moratorium.
"Personally," he continued, "I feel that any additional procrastination
would be a hideous mistake. As a true friend of France I earnestly hope a
formula will be found without delay which will enable the French Parliament to approve payment on account of the deferred debt instalment.
Suggests Advantages.
"This will assure France the same advantages which accrue to other
Powers in the effort now being made to conclude a settlement. It will
propitiate public opinion in the United States. It will answer the charge
that France has attempted to reverse the usual practice of debtor and
creditor relationship and stipulate the terms of settlement in advance
of negotiations.
"It will constitute a categorical reply to those critics abroad who
seek to demonstrate that the French Parliament refused to honor an
acknowledged obligation. • Otherwise, when the discussions of debt revision
really get under way France will be laboring under an obvious disadvantage."
In its February 23 issue the same paper reported the following from Paris February 22:
The renewal of Franco-American war debt conversations with Ambassador
Paul Claudel's visit to President-elect Roosevelt yesterday brought a
quick reaction here when United States Ambassador Walter E. Edge deleted
from his Washington's Birthday address at the American Club to-night
many blunt statements contained in the original draft.
While he had intended to "brush aside the cobwebs of rhetoric" and to
"speak frankly, plainly and objectively," Mr. Edge explained, the news
of the new conversations in the United States had convinced him that
"the time for talking has passed and the time for acting has come." Ile
declared he had received no instructions from Washington, but had revised
his speech "as a matter of courtesy."
In this connection it was stressed that the guest of honor at the dinner
was former Premier Edouard Herriot. M. Ilerriot has been, above all
French leaders, most diligent in presenting the American viewpoint, having
suffered defeat as Premier for his insistence that France pay the debt
Instalment due Dec. 15 to the United States.
Foreign Office Protests.
M. Herriot, as a matter of traditional courtesy, had received in advance
a copy of Mr. Edge's address in its original text. As President of the
Foreign Affairs Commission of the Chamber of Deputies, he felt obliged to
convey its context to the Ministry of Foreign Affairs, which it was learned
authoritatively, let the United States Embassy know that the contents
of the address conflicted with assurances received by the Ministry of
Foreign Affairs, which, presumably, were reinforced by Ambassador Edge's
feeling that it would perhaps embarrass whatever negotiations were being
started if he did not alter his address.
That the French Ministry of Foreign Affairs did not look upon the
original text with complete friendliness may perhaps be inferred from the
fact that some Cabinet members, invited to the dinner, found themselves
unable to come. Foreign Minister Joseph Paul-Boncour sent a representative.
The United States Embassy issued the following statement:
"The Ambassador announced this morning that, in view of the opening
of the Roosevelt-Claudel conversations yesterday, he had revised his speech
to be delivered at the American Club to-night by the elimination of a very
frank discussion of the Franco-American debt problem, including his version
of the American point of view. The Ambassador stated that he had not
received any instructions or advices from Washington, but felt, under
the circumstances, that it was the only courteous thing to do."
Thus Mr. Edge, in addition to many warm expressions of friendship and
gratification toward French officialdom and the American colony, largely
confined himself in his speech to-night to explaining side aspects of the
debt situation, such as the necessity of a speedy settlement and his view
of the inadvisability of having recourse to tariff bargaining.
M. Herriot, who preceded Mr. Edge, also avoided "delicate questions ofpolitics." "You know my opinions anyway," he said. He pledged himself
to aid M. Paul-I3oncour to the best of his ability in the forthcoming
negotiations, which he evidently regarded as inevitable.
To-night's dinner climaxed a day of ceremonial observances of Washington's Birthday, including the annual luncheon given by the Ambassador
for the envoys of Latin American countries and Canada at the Embassy
residence.
March 11 1933
Conversations Between Franklin D. Roosevelt and Paul
Claudel, French Ambassador.
Franklin D. Roosevelt, before assuming his office as
President, and Paul Claudel, French Ambassador to the
United States, conferred on February 21 in Mr. Roosevelt's
home in East Sixty-fifth Street. The New York "Evening
Post" of that day reported:
Upon leaving the house, shortly before 2 o'clock, H. Claude! said,
"We discussed many things."
Adding, "I can tell you nothing," M. Claude], accompanied by Emmanuel
Monick, financial attache to the French Embassy, drove away. M. Monick
was present during the interview, an interview which in the opinion of
observers dealt primarily with the forthcoming economic conference.
Berridge Next Visitor.
Directly after the French Ambassador left, William Duncan Ilerridge,
Canadian Minister to the United States, arrived at the house to see Mr.
Roosevelt. These interviews followed a two-hour conversation held by the
President-elect yesterday with Sir Ronald Lindsay, British Ambassador to
the United States, and the belief was strengthened that a world economic
conference had superseded in importance the British debt negotiations.
H. Claudel declined to be interviewed by reporters as he went into the
Roosevelt house on East Sixty-fifth Street. All that he said was, "Pardon I
Pardon!" He ran up the steps accompanied by H. Monick.
The meeting between Ambassador Claudel and Mr. Roosevelt was arranged
by Secretary Stimson, according to the Associated Press, but State Department officials in Washington refused to say whether similar appointments
with representatives of other foreign nations have been made.
Say Premier Laval of France Linked Debtito Reparations—Political Circles in Paris Tell of Terms
Former Premier Gave to Former President Hoover.
Associated Press advices as follows from Paris March 6,
are taken from the New York "Times":
Former Premier Laval was quoted in political circles to-day as having
asserted that he told President Hoover in 1931 that he never would
consider cancellation of German reparations without cancellation of the
French debts and a substantial payment besides.
This M. Laval was said to have told a group of 50 friends at a private
luncheon to-day.
Ile repeated the statement that he made last December to the effect that
if there were only one vote in the French Senate against payment of the
Dec. 15 instalment to America, that vote would be hie. He also severely
criticized the Lausanne agreement which settled the reparations issue for
the time being.
Disarmament and the other big problems facing the world never will be
solved, he said, except by strong, authoritative action.
United States Assay Office in Nevadar Continues to
Buy Gold—Willing to Pay with Checks.
From Carson City, Nev., March 6, Associated Press accounts said:
The United States Assay Office here announced to-day that it would
continue to accept deposits of gold and pay for them by check.
E. T. Clyde, Government Assayer, was attempting to obtain permission from Washington for the post offices here and in Reno to cash these
checks.
Gold Ban on Canadian Border Commuters,
Canadian Press advices from Sault Ste. Marie, Ont., March
7 to the New York "Times" said:
Commuters between this city and Sault Ste. Marie, Mich., had to undergo questioning to-day from United States customs officials as they
watched closely for any attempt to remove gold from the Michigan side
In contravention of the embargo on gold export from the United States.
Some of the travelers were searched.
Calgary Pays Gold, Avoids Suit.
Under the above head Calgary (Alberta) advices (United
Press) March 7 were publiehed as follows in the New York
"Herald Tribune":
Payment in gold for debentures held by the Malden Trust Company, of
Malden, Mass., was made by the City of Calgary yesterday, thereby averting threatened Court action. The American firm now has to do a share
of worrying because gold cannot be exported from Canada without a
special license. The bank threatened action against the City if it did not
meet debenture payments in United States funds. The City finally obtained gold from the Dominion Government and handed it over to the
firm's solicitors here.
Gold Secure Here, Says London "Times"—Says Conditions That Drove Britain Off Differed from
Those Here.
The following from London March 6 is from the New
York "Times":
Applauding President Roosevelt for his bold leadership, tile London
"Times" declares to-day that outright abandonment of the gold standard
by the United States is "so unlikely it may almost be left out of Sc.
count."
Explaining that America's position is totally different from Britain's
in September 1931, the "Times" says:
"None of the compelling causes which then drove this country off the
gold standard is found in the United States to-day. There is an ample,
even excessive stock to meet all normal requirements and there is no
run on the American stock by foreign short-term creditors. The immediate cause of the trouble is a panic loss of confidence by American
depositors in the stability of banks in which they have placed their
money.
Volume 136
Financial Chronicle
"VV hate% er the cure may be, there is no reason to suppose it will be
sought in abandonment of the gold standard, especially since America
has a greater vested interest in gold than all the rest of the world put
together. Nor is the remedy of devaluation likely to find much favor. It
would not accomplish the object of redressing the balance between debtor
and creditor, since a great volume of American obligations is expressed
in gold dollars of a specified weight and refinement. If there is any
change at all, it might conceivably be a modification of the gold standard
into the form used by Britain before September 1931—the so-called bullion
standard, whereby gold was used for settlement of foreign balances but
was not available for conversion into internal currency notes."
Gold Basis in United States Safe London Bankers View.
From the New York "Herald Tribune" we take the following (United Press) from London, March 7:
"The Daily Telegraph's" financial editor will say to-morrow:
"London bankers are now inclined to take the view that, given internal confidence, America should be able to resume the gold standard
at the old dollar parity and hold it. There are no external forces threatening the dollar's stability."
Says Germany Will Pay Debt Service in Gold Basis.
A Berlin cablegram March 7 to the New York "Journal
of Commerce" said:
Director Bergmann of the Dresdner Bank, one of Germany's most influential financiers, announced to-day that Germany will pay interest
and sinking fund on dollar bonds outstanding in the United States in
full even if America abandons the gold standard.
This policy will be continued just so long as the Reichsbank gold and
foreign exchange reserves permit, he added.
Bank of Italy Earmarks Gold—Biggest Banks Do Not
Withdraw Dollar Accounts in New York.
The following (United Press) from Rome, Italy, March
4, is from the New York "Herald Tribune":
The Bank of Italy ordered its New York deposit placed in a block
account against gold to-day, requesting that the gold be earmarked. The
bank was caught previously during the British crisis and did not wish
to take a second risk.
No withdrawals of any dollar accounts in New York were made by
the biggest Italian banks, however. While the banks remained confident of American banking resources, private concerns refused to buy
dollars at any price, despite a plentiful supply. No personal dollar
checks were honored.
President of Bank of Netherlands Says Holland Will
Stay on Gold.
Advices from The Hague March 6, to the New York
"Times" said:
Dr. L. J. A. Trip, President of the Netherlands Bank said to-day that
Holland would stay on the gold standard whatever happened.
Dr. Rogers of Yale Urges United States Not to Bar
Exportation of Gold—Advocates Measures to Cause
Fall in Its Value.
Dr. James Harvey Rogers, Sterling Professor of Political
Economy at Yale University and author of "America Weighs
Her Gold," in a statement March 4 on the financial crisis,
according to New Haven, Conn., advices to the New York
"Times" said:
"Happenings since the Summer of 1931 have thrown into the limelight the difficulties of continuing the operation of the gold standard.
It was absurd enough for Great Britain and a number of the other financially strongest countries to be forced off of gold a year and a half ago.
But the height of absurdity only comes now with a similar threat to the
dollar. What should be done?
"The intelligent course seems clear and simple. Since the future of
the gold standard as an international monetary system is extremely doubtful and since the United States has much too much of this very expensive
metal to be 'caught with,' should it be demonetized and lose its value
as silver has done, let the incoming administration announce:
"1—If necessary, every dollar of our huge gold reserve will be used
to meet demands at home and abroad.
"2—henceforth, however, gold will be received by the Treasury and
by the Federal Reserve Banks only at a 5% discount.
"3—After March 15 this discount will be revised upward from time
to time at the discretion of the Secretary of the Treasury.
"4—In addition, all monetary demands of the American public will be
amply provided through the Federal Reserve Banks, which have the power
In emergency to expand credit and currency without limit.
"Anticipated effects:
"(a) The dollar will soon go to a premium (instead of a discount) in
the foreign exchange markets of the world.
"(b) Great Britain and the sterling group (in the absence of opposing
legislation) will be brought back automatically to the gold standard.
"(c) The gradual decline in the value of gold will stimulate an early
price rise throughout the world and make completely unnecessary any
drastic inflationary move.
"The reverse policy of a gold embargo would be unfortunate, as it
would settle none of our monetary problems for the future."
Embargo on Gold Favored by Group Formed Under
Name of Committee for Nation Headed by Frank A.
Vanderlip—Would Suspend Specie Payments and
Guarantee Bank Deposits.
Suspension of specie payments, an embargo on gold
against foreign shipments, and a Federal Government
guarantee of bank deposits with protective restrictions was
urged (said the New York "Journal of Commerce" of March
1643
6) by the Committee for the Nation, a group of fifty industrialists and of representatives of farm organizations
which was formed several weeks ago to make an intensive
study of the situation.
The Committee of the Nation was formed under the
Chairmanship of Frank A. Vanderlip. Regarding the report the "Journal of Commerce" also had the following
to say:
The members of the Committee have been holding hearings of economists,
industrialists and bankers . . . An interim report, made by the
Committee several days ago and circulated among Congressmen and industrial leaders, was made public yesterday.
Would Devaluate Dollar.
While favoring a guarantee of bank deposits with restrictions, the Committee believes, however, that any general guarantee of bank deposits
will endanger Government credit unless accompanied by a declaration that
it is the purpose of the Administration to devaluate the dollar in order
to raise the price level.
The Committee recommended legislation separating commercial from
investment banking. The root of the banking difficulties was held to
be the use of demand deposits in commercial banks for long term capital
purposes, either by way of direct ownership by banks of real estate mortgages and corporation bonds, or of collateral loans secured by such long
term obligations.
It was stated that 25% of banking assets have been devoted to commercial loans and 75% of deposits have been tied up in mortgages and
corporate long term securities having no self-liquidating value.
Would Divide Deposits.
"Information in the hands of the Committee indicates that on present
market value of assets a great proportion of the banks of the country are
not left in a solvent condition," the summary of the report said. "It
believes this situation must be faced, and the report recommends, as one
means of accomplishing the desired result that deposits in each bank
be divided. Such portion of a bank's deposits as the reports of the examiners of the Comptroller of the Currency and of the Federal Reserve
Banks indicate as no longer supported by the bank assets, calculated at
present values, should be subordinated. The banks, however, should be
permitted to remain open, setting up a new set of books upon which all the
fairly liquid assets of the bank appear on one side, balanced by such a
percentage of deposits as the Comptroller and Federal Reserve Banks indicate as being sustained by those assets, and that the Federal Reserve
Banks, or preferably the Reconstruction Finance Corporation, under
guarantee by the Government, should agree to rediscount for banks under
special pressure on the basis of the new and sound balance sheets."
The Committee recommends the immediate suspension of specie payment and an embargo on gold exports, in order that foreign depositors
and domestic hoarders shall be forestalled in their present action of
depleting the American stock of gold.
"The Committee believes," the report summary continued, "that the
orderly working of the gold standard has been made impossible through
the tendency of frightened liquid capital to be moved from one country
to another with telegraphic speed, thus throwing upon the gold standard
an entirely new obligation which it cannot sustain. The international
ownership of securities which can be thrown on a market and turned
into an immediate command over gold is further reason for abandoning
the gold standard. The suspension of specie payment immediately and
by legislative action is regarded as a step that would at once raise commodity prices and create a demand for restocking goods that can only
be brought about by a rising commodity price level. It is believed that
it will be far better to take this action as a legalized, aggressive measure
In the present situation of international economic warfare than to be
forced later to take it as a necessary defensive measure by reason of continued depletion of our gold stock.
"When we go off the gold standard the question will at once arise as
to whether we shall some time return to the present standard of 23.22
grains of fine gold to the dollar, or whether we shall devaluate the
standard. A program of devaluation is looked upon as extremely dangerous,
because there would be left in the minds of the public fear that further
devaluation might some time take place. The Committee, therefore, believes that there should immediately be studied, as a mans of avoiding the possibility of subsequent changes of standard, the idea of a
standard related to the price index, rather than to a specific number of
grains of gold. Having once agreed upon the price level to which it was
desired to return, devaluation would be made to that point, and thereafter any material change in the commodity price level would be rectified
by an automatic change in the number of grains of bullion into which the
dollar might be converted. The report gives analyses of the reasons lead•
log to this conclusion.
Rejects Inflation.
"The Committee examines the projects of currency inflation and rejects it absolutely.
"The report declares that balancing of both Federal and local government budgets
should unquestionably be a firm aspiration, but It doubts the practical political
Possibility of doing that on a declining commodity price level. It recommends
drastic economies In Government expenditures. but believes that under present
conditions a true balancing of the budget is Impossible until measures are taken
which will advance the price level. The methods of doing that are discussed at
length. The committee concludes that such methods must embrace the suspension
of specie payment and embargo."
Signers of Report.
Besides Mr. Vanderlip (according to the New York
"Times," persons who signed the interim report embodying
the plan were:
J. H. Rand, Jr., President Remington Rand, Inc., Buffalo.
Fred II. Sexauer, President Dairymen's League Co-operative Association,
Inc., New York.
Frederic H. Frazier, Chairman of the Board of the General Baking
Company of New York.
John Henry Hammond, who is Chairman of the Board, Bangor & Aroostook
Railroad.
General R. E. Wood, President, Sears, Roebuck & Co., Chicago.
Lessing J. Rosenwald, Chairman, Sears, Roebuck & Co., Philadelphia.
Vincent Bendix, President, Bendix Aviation Corporation, Chicago.
Samuel S. Fels, President, Fels & Co., Philadelphia.
E. L. Norton, Chairman, Freeport Texas Corporation, New York.
Philip K. Wrigley, President, William Wrigley, Jr., Company of Chicago.
J. D. Miller, President, National Co-operative Council, Washington, D. C.
Financial Chronicle
1644
Harry Hartke, President, National Co-operative Mill Producers Federation, Washington, D. C.
Howard E. Coffin, Chairman, Southeastern Cotton, Inc.
R. J. Andersen, Assistant to the President, Dairymen's League Cooperative Association.
E. L. Cord, President, Cord Corporation.
Edward A. O'Neal, President, American Farm Bureau Federation.
L. J. Taber, Master, National Grange.
Gerard S. Nollen, President, Bankers Life Insurance Company.
Manufacturing
Farny It. Wurlitzer, Vice-President, Rudolph Wurlitzer
Company.
E. I. AfcClintoch, Bayer Company.
William J. McAveeny, President, Hudson Motor Car Company.
Chicago.
Henry Pope, Sr., President, Bear Brand Hosiery Company,
John W. Kiser, President, Phenix Manufacturing Co., Chicago.
William A. Wirt, Banker, Gary, Ind.
From the "Times" of March 6 we also quote:
was
The survey on which the Committee based its recommendations
prepared on the basis of reports by the National Industrial Conference
Board and on interviews with bankers, industrialists and financial experts.
Drawing an extremely pessimistic picture of the banking situation in the
United States, the report called attention to the present situation regarding debt, bank failures, the general decline in purchasing power, the urban
mortgage situation and the necessity for extensive financial operations by
the Government this year.
In its discussion of the gold standard the Committee declared that the
development of international securities markets had made it possible to
since
transfer gold from one country to another "with telegraphic speed,"
securities "can be turned into a bank deposit and thus into an effective
said,
demand for gold at short notice." This state of affairs, the report
of the
had resulted in an acute difficulty with respect to maintenance
gold standard.
Comparative Figures of Condition of Canadian Banks.
In the following we compare the condition of the Canadian
banks for Jan. 31 1933 with the figures for Dec. 31 1932
and Jan. 30 1932:
STATEMENT OF CONDITION OF THE BANKS OF THE DOMINION OF
CANADA.
Assets.
Current gold and subsidiary coin—
In Canada
Elsewhere
Total
-Dominion notes
In Canada
Elsewhere
Jan. 31 1933. Dec. 311932. Jan. 30 1932.
$
38,961,277
15,294,945
$
37,975,585
15,287,507
$
44,676,067
20,235,092
54,256,224
53,263,094
64,911,161
146,325,257
13,907
153,170,146
11,132
131,097,457
9,636
146,339,166 153,181,279 131.107,095
Total
11,069,388
12,146,418
9,230,225
Notes of other banks
13,643,419
17,941,291
17,944,991
United States k other foreign currencies73.194,903
68,817,442 80,406,394
Cheques on other banks
Loans to other banks in Canada,secured,
Including bills rediscounted
Deposits made with and balance due
3,727,517
4,322,464
3,881,079
from other banks in Canada
Due from banks and banking correspond5,634,808
7.786,109
10,489,625
ents in the United Kingdom
Due from banks and banking correspondents elsewhere than in Canada and the
92,299,280
83,291.013 104,900,799
United Kingdom
Dominion Government and Provincial
568,196,456 562,359,413 487,558,278
Government securities
Canadian municipal securities and British, foreign and colonial public securi168.050,375 166.958,673 144,874,846
ties other than Canadian
61,285,785
48,933,929
47,967.688
Railway and other bonds. debs.,k stocks
and short (not exceeding 30 days)
Ca:I
debentures,
loam in Canada on stocks,
bonds and other securities of a suf99.998,855 103,204,389 131,174,742
ficient marketable value to Cover
91,491,603 65,917,084
83,770,260
Elsewhere than in Canada
Other current loans .fs awls In Canada_ 945,740,389 964,023,809 1,070,718,470
151,033,947 151,661.262 189,726,460
Elsewhere
Loans to the Government of Canada_
28,273,5.53 43,442,461
23,041.425
Loans to Provincial Governments
Loans to cities, towns, municipalities
114,645,673 111,569,811 132,864,154
and school districts
Non-current loans, estimated loss pro10,686,746
13,311,964
13,530,406
vided for
6,580,375
7,481,430
7.580,961
Real estate other than bank premises
6,293,232
6,387,717
6,463,813
Mortgages on real estate sold by bank
Bank premises at not more than cost,
79,913,747
75,702,197
79,232,160
off
less amounts (if any) written
Liabilities of customers under letters of
51,353,335
40,244,749 42,634,870
credit as per contra
Deposits with the Minister of Finance for
6,822,186
6,602,452
6,605,675
the security of note circulation
21,881,732
19,881,732
18,881,732
Deposit in the central gold reserves
12.748,323
13,170
13,063,406
ihsres of and loans to controlled cos_ __ _
3ther assets not Included under the fore1.489,541
1,522.925
1,796,177
going heads
2,783,820.7.51 2,852,086,913 2,900,925,794
Total assets
Liabilities.
116,868,992 127.074,824 133,673.369
Notes in circulation
Balance due to Dominion Govt. after de94,650,375
53,107,707
37,508,922
for credits, pay-lists, dic_
ducting adv.
43,000,000
56,988.000
46,744,000
kdvances under the Finance Act
20,577,890
18,933,416
20,636,434
3alance due to Provincial Governments
on deDeposits by the public, payable
445,991,023 466,212,767 506,942,776
mand In Canada
Deposits by the public payable after no- 1,382,874,932 1,377,520,115 1,368,278,419
tice or on a fixed day In Canada
316,227,059 328,725,094 296,184,569
Deposits elsewhere than in Canada
_sans from other banks in Canada, secured, including bills rediscowated3eposits made by and balances due to
9,950,161
12,319.732
9,869.812
other banks in Canada
Due to banks and banking correspond3,678,573
7,426,767
4,899,349
ents In the United Kingdom
Elsewhere than in Canada and the
41,856,537
41,371,955
40,723,826
United Kingdom
3,110,074
627,187
515,809
Dills payable
51,353,335
42,634,870
40,244,749
,etters of credit outstanding
2,792,413
2,609,026
2.558.703
Aabilities not incl. under foregoing heads
1,844,105
706,013
1,156,948
Dividends declared and unpaid
162,000,000
182,000,000 162,000,
reserve fund
te.,t or
144,500,000 144,500,000
144,500,000
)apital paid up
2,773,320,605 2,842,757,523 2.883,892,638
Total liabilities
-0wing to the omission of the cents In the official reports, the footings In
Note.
given.
the above do not exactly agree with the totals
March 11 1933
Canada Temporarily Values American Shipments in
Canadian Dollars.
The following was issued March 9 by the Department of
Commerce at Washington:
To facilitate trade during the emergency, the Canadian Minister of
National Revenue has ruled that the invoices in United States dollars shall
be converted at parity with Canadian dollars, for all customs purposes, on
shipments from the United States made on and after March 4, and until
the termination of the bank holiday and a rate of exchange for American
dollars is again officially quoted, according to a report to the Commerce
Department's tariff division from Commercial Attache Lynn W. Meekins,
Ottawa.
Since the depreciation of the Canadian dollar, an exchange premium on
the American dollar, in terms of the Canadian, has been added to invoices
In United States dollars to establish the basis for duty assessment In Canada,
De Valera, President of Irish Free State Council, to
Put Annuities to Use—Notifies Great Britain
£2,910,000 Will be Used—London Won't Acquesce.
Wireless advices from London March 7 are taken as
follows from the New York "Times":
Eamon de Valera, President of the Irish Free State Council, has decided
to spend the £2,910,000 of land annuities that the Free State refuses to
pay Great Britain and which, in anticipation of arbitration, have thus
far been retained in a suspense accent in Dublin.
J. H. Thomas, Dominions Secretary, made this announcement in the
House of Commons this afternoon when he read a letter from J. W. Dulanty, the Free State's High Commissioner in London, which said:
"My Government now considers that no useful purpose should be served by further
retention of these monies in a suspense account. Therefore it has decided to use
them to finance the normal Exchequer requirements."
Mr. Thomas said the Government had replied regretting Mr. Dulanty's
communication and saying: "Our offer of arbitration or negotiation is
still open, but we cannot be understood to acquiesce in the Free State's
action."
George Lansbury, Labor leader, suggested that the Government ought
to give way on the narrow issue of the Chairmanship of the Arbitration
Commission—the Free State has refused to accept an arbitration Chairman
drawn from within the Empire—and reconsider the whole question. Mr.
Thomas emphatically held, however, that violation of the treaty was
involved and refused to go outside the Empire for an arbitrator. While
friendship between the two countries is an important consideration, he
continued amid cheers, honor and justice must be observed by others.
Against the annuities the British have collected £2,128,000 in new
duties.
Commenting on the above the "Times" of March 8 said:
Funds Withheld Last June.
The Free State first withheld the land annuities payments from the
British Exchequer in June 1932, a few months after Eamon de Valera's
accession to power. They were placed in a suspense account pending
negotiation and settlement of the dispute.
The annuities are payable on account of loans by British and Irish
leaden; for lands in Ireland late in the last century, lands now being
worked by Irish farmers who are still required by the Free State Government to meet at least part of their own annuity dues.
Failure of the Free State Government to meet an annuities payment
precipitated the tariff war between the United Kingdom and the Free
State, the United Kingdom taking the first steps so as to recoup herself
by increased duties for the loss of the annuities. From time to time it
has been indicated the increased duties virtually offset the loss of the
annuities. in turn, however, British trade suffers by heavier Free
State duties.
Irish Free State Pledges Aid to Farmers.
On March 7 Canadian Press accounts from Dublin stated:
The Government announced to-night it would set aside £1,750,000 to
aid Irish Free State farmers. It was believed the money would be obtained
through use of the suspense account into which land annuity payments
withheld from the Bank of England have been accumulated.
The announcement followed a meeting of Free State county council secretaries at which tax arrears and rates, overdrafts, housing grants and land
valuation were discussed. The Government said it had earmarked 8250,000
for relief of small farmers whose land was valued at £10 or less. Relief
would take the form of reduction in taxation by about two shillings in
every pound.
.French Gold Exports Going to London—Most Foreign
Exchanges Favor Paris, but London Pays a Varying
Premium.
Paris advices March 3 to the New York "Times" said:
While there was no change for the week in the foreign balances as shown
by Thursday's report [March 21 of the Bank of France, the gold reserve
lost a further 303.000.000 francs. This makes a total reduction of 2.343.000,000 francs, or $91.800,000, in the gold reserve since the outward gold
movement began with the month of December. The gold which is now
being withdrawn from the Bank still goes almost exclusively to England.
Exchanges on countries still on the gold standard are not favorable to;France.
In the case of England, however, with the fluctuating value of the
pound sterling, there is no fixed gold point to determine ordinary gold
movements between Paris and London. Purchases of francs by the British
Government to acquire gold are made at whatever rate is quoted in the
market for the pound sterling. The Bank return, covering conditions
as of Feb. 24. showed increase of 605,000,000 in bills discounted. Circulation rose 613.000.000. while private deposits fell 150,000,000 and
Treasury deposits 279,000,000.
Gold Accumulating in Bank of England—Present
Holdings £30,600,000 Above January—Banking Reserve Nearly at High Record.
From the New York "Times" we quote the following
from London March 3:
The inflow of gold to the Bank of England continued this week at a fairly
unprecedented rate. In the week ending last Wednesday, which was
Volume 136
Financial Chronicle
1645
covered by the Bank of England's statement of Thursday 1March 21, the
Bank received £8,000,000 gold, making total purchases for the year nearly
£33,000,000 and raising the gold reserve to £151,000,000, as against
£120,500,000 in the middle of January. At the same time the banking
reserve against deposits increased £5,000,000 for the same week, reaching
£66,600,000. This is the highest point reached for the reserve since
July 1931, and is less than £5,000,000 below the highest point ever reached.
Most of the gold now being bought by the Bank of England presumably
represents conversion of dollars and francs into gold through the Treasury
exchange fund,and is being retained under earmark by the Bank of England
in America. It is impossible to say whether this gold will eventually be
transferred to London. In all probability, the authorities themselves could
not at this moment say what policy in that matter will be pursued. The
general movement of gold, and the uses to which it may be put, depend
on many factors which are at present Incalculable.
French Revenue Smaller.
In a Paris wireless message March 4 to the New York
"Times" stated that public revenue in France during January, amounted to 3,248,000,000 francs, was 587,000,000
below the estimates and 298,000,000 less than in January
1932.
The following from London March 9is from the New York
'Times":
4
The interest rate on the French National Defense bonds, which all run
for two years, has been raised to 3% from 21%, as was expected, following
/
2
the increase in the rate on Treasury bills.
The Bank of England purchased £2,012,000 more of bar gold to-day in
pursuance of its policy of selling sterling to prevent a rise in the exchange
rate. This makes a total of £42,172,000 bought since Jan. 24 and brings
the bank's bullion stocks to £162,713,000.
Budget Finally Passed in France—Premier Daladier
Wins Reduction of $196,000,000 in This Year's
Total Expenses.
By incessant work, Premier Daladier of France finally
managed to secure the passage on March 1 through both the
Chamber and the Senate the March finance bill, which assures a reduction of the deficit in the French budget this
year by nearly 5,000,000,000 francs [$196,000,000]. A
cablegram from Paris March 1 to the New York "Times"
from which we quote, added:
Added to reductions already made by the Ilerriot Government last July
and September, this new measure will cut the deficit this Parliament
inherited by nearly 10,000,000,000 francs.
M. Daladier's problem has been, throughout, far more a political than
a financial one. He had to find measures of economy and new sources
of revenue which would obtain the approval of the Socialist party and
yet pass the Semite. In that he has succeeded as none of his predecessors
has ever done.
The prospect that a split in the Left forces would lead to the formation
of either a concentration or National Union Government has prevented
the Socialists being too intransigeant. But it has produced a split in
their ranks and Leon Blum, for long the President and principal figure
of this parliamentary group, resigned last night as a result of the party's
decision to compromise on the question of taxation of salaries of State
employees.
Throughout the discussions M. Blum had been in constant disagreement with the majority of the party, which is anxious to continue to cooperate with M. Daladier.
At nearly 3 o'clock this morning M. Daladier asked for a vote of confidence on Article LXXXIII of the project, which proposed a small tax on
the salaries of all civil servants earning more than 12,000 francs a year
and obtained a majority of 334 against 250. This was the last controversial article of the bill, the Chamber having earlier accepted the
Senate's proposal to increase the income tax by 10% instead of 20%.
Paris Chamber Votes $400,000,000 Loan To Cover Budget Defects.
It was stated in a wireless message from Paris to the New
York "Times" that in a single sitting March 7 the French
Chamber of Deputies, by a majority of 360 to 185, approved
the government's proposal to issue a 10,000,000,000-franc
[$400,000,000 at panl bond issue to cover budget deficits of
the past three years and to provide relief for the treasury.
The message added:
Two amendments moved by the Nationalist leader, Louis Mann, were
defeated by almost the same vote in a debate which was characterized
chiefly by a lively passage between former Premiers Tardieu and Herriot
on responsibility for these accumulated deficits. M. Tardieu laid the
blame on Parliament, but B. Flerriot held the Cabinet over which IL
Tardieu presided responsible.
The interest and issue rate of the new bonds will be fixed by decree.
It is reported the interest will be 41 and the issue rate 95.
/
2
%
The bill will be introduced in the Senate Thursday and subscriptions
will open Monday.
During the 10 months the present Chamber has been in session it has,
by economy, conversions and new taxation under Premiers Herriot and
Daladier, improved the budget situation by 9,000,000,000 francs [$360,000,000 at par].
During the discussion of the new issue this morning by the Chamber
Finance Commission, the Socialist Deputy Dedonce proposed that each
subscriber to a 1,000-franc bond at 4% should have a 100-franc gold piece
in a special commemorative form handed to him with his bond certificate
as a premium.
Earlier adviees (March 6) from Paris to the same paper
said in part:
Finance Minister Georges Bonnet this evening confirmed the French Government's intention to introduce in the Chamber of Deputies to-morrow a
bill authorizing a 10,000,000,000-franc ($400,000,000 at par] consolidation loan to cover budget deficits of the past three years and to permit
financing reconstruction schemes, including fortification of the eastern
frontier, begun three years ago.
The total issue will be divided into two or three instalments, according
to conditions.
In proposing the loan, the Government will seek to insure its favorable
reception by all parties by including in its argument the need for completion of the fortification system, extension of electrification throughout
the country, the provision of cheap housing, and improvement of port
facilities.
Part of the loan will be in short-term and part in middle-term bonds.
Raise French Interest Rates on National Defense
Bonds.
On February 28 the "Wall Street Journal" reported the
following from Paris:
A previous item bearing on the raising of interest rates
on French Treasury bonds appeared in our issue of February
11, page 929.
France Puts Tax on Import Permits—Levy on Licenses
and Quota Certificates Has. Effect of Increase in
Tariffs.
Under date of March 1 a wireless message from Paris to
the New York "Times" said:
A law was promulgated to-day instituting taxes on import licenses and
quota certificates, which American business men here feel will add another
serious hurdle for foreign trade.
Minister of Commerce Louis Scrre indicated the rate would be determined by the difference between foreign and domestic prices, which would
give it the effect of an indirect tariff increase.
"The policy I intend to follow," he said, "consists of denunciation of
existing accords, deconsolidation of the consolidated rates and the establishment of new tariff rates as a substitute for quotas."
To-day also saw another restriction on trade in the reduction of import
allowances on heavy oils by 5 and 10%, according to category. In view
of the large imports from the United States, this is going to hurt American
industry. The reason for the restriction is understood to be the desire
of the French to do more of their own refining.
The following dated March 2 was issued by the Department of Commerce at Washington:
A provision of the French budget law, published in the "Journal Officiel"
for March 1 1933, authorizes the Ministries concerned to impose during
1933 special fees for import licenses covering products subject to quota
restriction and to fix maximum selling prices for these products, according
to a cablegram to the Division of Foreign Tariffs of the Department of
Commerce from Acting Commercial Attache Daniel .I. Reagan, Paris.
The amounts of the tax on the licenses to import restricted products
have as yet not been announced by the Ministries that administer the quotas
on the various products, it was reported.
Death of Eduard Belt von Speyer.
Eduard Boit von Speyer, 72, of the firm of Lazard SpeyerEllissen, and a partner of Speyer & Co., of New York, died
at Frankfort-on-Main, Germany, on March 8. Mr. von
Speyer had been ill for about two months from the aftereffects of influenza. He resigned about two years ago as
Chairman of the Lazard Speyer-Ellissen banking firm,
retaining his connection as Vice-President of the Board of
Directors. The Speyers belong to the old group of wivate
bankers. The Speyers have been prominent citizens of
Frankfort-o-Main for many generations. The present banking
house had its origin in the 18th century in Frankforto-Main, where business .still continues under the name of
Lazard Speyer-Ellissen K.a.A. The New York firm of
Speyer & Co. was founded in 1837. The following is made
available by Speyer & Co.:
Eduard Belt, born in 1860, descended from an old Hamburg merchant
family. In 1910 he was specially honored by the Emperor of Germany
when the hereditary title of "Bolt von Speyer" was conferred upon him
and his family.
He received his early education in his native city, and then prepared for
his business career in Hamburg, London and Paris. Ile first came to
New York in 1887. entering the banking house of Speyer & Co. as a clerk.
In 1893 he was sent to the old Frankfort firm. Lazard Spoyer-Ellissen,
and in 1896 he became a partner of that firm, also of Speyer & Co., New
York.
Mr. Rein von Speyer was a member of the boards of a number of leading
German banks—like the Deutsche Bank und Disconto-Gesellschaft,
Frankfurter Bank. Frankfort Committee of the Reichsbank, &c.—and of
several leading industrial corporations.
He retired as Chairman of the Board of Lazard Speyer-Ellissen K.a.A.
of Berlin and Frankfort about two years, his place being taken by Dr.
Hermann Fischer, Chairman of the Hansabund, and director of many
other German corporations. Mr. Belt von Speyer retaining his connection
as Vice-Chairman of the Board of Directors.
Mr. Reit von Speyer did not confine his activities to the banking business.
Ile took a prominent interest in the social and civic life of Frankfort -Main.
-o
He was particularly active in furthering educational and scientific movements, and the University of Frankfort conferred upon him many high
honors. During the World War he was decorated with the German Iron
Cross for distinguished patriotic services.
In 1892 Mr. Belt von Speyer married Lucie Speyer of Frankfort
-o-Main,
sister of Mr. James Speyer of New York. She died during the World
War in 1918. They bad four children. Their eldest son, Erwin, serving
In a Dragoon Regiment, was killed in Flanders in 1914. Two daughters,
Nellie Belt von Speyer and Hedwig von Rogues, and one son. Herbert Belt
von Speyer, survive. The latter married Elisabeth de Neufville in 1923.
and they have three children, one daughter and two sons.
1646
Financial Chronicle
New Rules Facilitate German Bond Purchases.
Under date of March 3, a cablegram from Berlin t) the
New York "J3urnal af Commerce" said:
Under the liberalized rules issued by the Ministry of Economy governing
dealings in dollar bonds, the sellers of foreign exchange can decide on
questions connected with such purchases, only turning over doubtful points
to the Ministry.
The banks are also authorized to handle bond purchases for exporters
making "special exports" on a joint basis.
Dollar bond quotations have been stable despite weakening of foreign
markets. If prices should drop still further abroad, increasing profits from
such exports, stimulus to these sales would be given.
March 11 1933
Colombia Suspends Sales of Foreign Exchange Incident
to the Bank Holiday in the United States.
Under date of March 6 Associated Press accounts from
Bogota, Colombia, stated:
The bank holiday in the United States has resulted here in the suspension of sales of foreign exchange, but there has been no increase in
withdrawals of deposits from the National City or other foreign banks or
native banks.
Guatemala Banks Suspend Operations.
Associated Press accounts March 7 from Guatemala
City stated:
Germany's "Dollar Bonds"—Home Comment on Dr.
Hugenberg's Statement Regarding Program.
Advices as follows from Berlin, March 3 are taken from
the New York "Times":
The Government to-day ordered the suspension of banking operations
as a safeguard for National finances pending solution of the situation
in the United States. The Government emphasized that banks in Guatemala are completely solvent.
Financial newspapers comment on the ambiguity of Hugenberg's statement concerning Germany's dollar bonds. The Frankfurter Zeitung makes
the point that the German export surplus for the service of the debts
depends not only on foreign tariffs but also on the German tariff. It is of
opinion that an initiative to reduce interest rates will certainly be taken,
and intimates that, even then, bondholders may be impelled to accept part
interest in "blocked" reichsrparks.
Dollar Weakens in Chile—Only Trading Is Unofficial,
However.
The following Santiago (Chile) cablegram March 8 is from
the New York "Times":
Reference to Dr. Hugenberg's remarks on debt adjustment
was made in our issue of March 4, page 1462.
Berlin Cuts Price of Dollar to Show German Mark is
Independent.
From the New York "Times" we quote the following from
Berlin, March 4:
The official quotation of the dollar was reduced to-day by the Reichsbank
from 4.21 marks to 4.20. It was the first time in almost two years that the
Reichsbank had changed the price of the dollar. It was done chiefly in
order to prevent the spread of any impression abroad that the German mark
in some way was linked up with the dollar.
It has been observed that Swiss quotation for the mark declined with
that of the dollar. Still the German price of the dollar remained above that
of most other central exchange markets.
W. E. Frew of Corn Exchange Bank Trust Co. Sails
for Bermuda.
In the "Wall Street Journal" of March 4 it was stated that
Walter E. Frew, President of the Corn Exchange Bank
Trust Co., had sailed on the Grace liner Santa Paul to
Bermuda for a vacation.
Moscow Plans 71 Shops to Sell Meat and Bread—Soviet
Goes into Open Market to Complete with Peasants.
Associated Press advices from Moscow March 1 are
taken as follows from the New York "Herald Tribune":
The Soviet Government to-night forecast its re-entrance into high-priced
business operations in food commodities by announcing that it was opening
shops in which meat and bread would be sold to the people at prices
prevailing in the open market.
Ostensibly the move is designed to compete with speculators in the
private markets, and at the same time to increase the supply of bread
and meat available to a large section of the populace which has no regular
source of supply.
The "Evening Moscow," the only afternoon newspaper in town, carried
a perfunctory article announcing that 21 shops selling meat at the open
market prices would be opened to-morrow, and 50 stores selling bread on
the same basis would open on Friday.
Buenos Aires Debt Adjustment Plan Opposed by
American Council of Foreign Bondholders.
In a statement issued March 3 the American Council of
Foreign Bondholders said in part:
Reception by the investing public of the loan readjustment plan presented
by the Argentine Province of Buenos Aires has been less than hearty—
not a surprising response in view of the fact that approval thereof is not
held essential by the Provincial Government in question, which calmly
ordains that it will make no payments of interest on dollar bonds unless the
holders exchange their coupons for Argentine currency obligations, as stipulated by the terms of the plan.
Even more surprising is a statement by Bancamerica-Blair, dated Feb. 27.
in which American bondholders are gravely informed that the "offer" of
the Province was first submitted to the London Council of Foreign Bondholders and the l'aris Bondholders' Association, both of whom considered it
a fair arrangement. Since the plan discriminated heavily in favor of British
and French holders, oven in so far as to continuo full interest payments in
sterling, francs and other European currencies, it would be astonishing if
these efficient and patriotic institutions did not applaud the method of
readjustment.
In a bulletin of the American Council of Foreign Bondholders dated 20 days earlier than publication of the plan, the
readers were warned that the holders of dollar bonds would
be asked by the Province of Buenos Aires to agree to a suspension of sinking fund operation and to the payment of
interest in 5% currency scrip at par of exchange, and pointed
out that they would receive only $20.60 for a year's interest
amounting to $65.00 if they sell their "substituted" coupons.
"The Council is unqualifiedly opposed to such unfair
discrimination against American investors," concluded the
bulletin.
Tho debt adjustment plan was referred to in our issue of
March 4, page 1465.
The Central Bank of Chile, which controls all exchange operations,
announced to-day it was unable to make a statement concerning the
consequences in Chile of Wall Street readjustments. The President of
the Central Bank added that it was impossible as yet to foresee the full
significance in the international money markets.
No quotations are being made either officially or in the open market
on the dollar, which dropped 30% in the few operations made in the streets.
Expecting an improvement in metal prices, the Stock Exchange to-day
showed higher levels for tin, copper and silver shares.
Business circles admitted that trade between Chile and the United
States might undergo serious changes if the dollar is weakened, changing
Chilean exports.
We also quote the following (Associated Press) from
Santiago March 6:
.
The American banking crisis came as a bombshell in Chilean financial
circles. On the Stock Exchange drops of 10 to 20 points wore registered. Fear that the gold standard would be abandoned also brought
down the dollar quotation by 20% of Saturday's value.
Panama Banks Open.
From the New York "Times" wo quote the following from
Panama City, March 7:
No change in the banking situation was apparent in l'anama to-day.
All banks were open for business as usual. There have been comparatively
small withdrawals by a few timid depositors. Since most of the steamship lines have deposits in the local banks or with the Collector of the
Panama Canal, there is no difficulty in the payment of canal tolls. The
canal has enough currency to pay its employees for several months, according to the auditor.
Costa Rican Bank Closes.
From San Jose, Costa Rica, March 7, the New York
"Times" reported the following advices:
The American-owned John M. Keith Bank closed its doors to-day
as a result of heavy withdrawals from all local banks since the news of
the banking situation in the United States was made public here early
Saturday.
The bank was founded by the late John M. Keith, an American pioneer
in Costa Rica. the builder, with Minor C. Keith of the Northern By.
from Limon to the capital. In the face of heavy withdrawals the Keith
bank had insufficient liquid funds and other local banks were unable to
aid, which forced the closing. No details of the bank's condition are
available, but it is believed its funds are tied up in financing the coffee crop.
A court appointed NIarlano Alvarez lklelgar receiver.
Cuban Moratorium on Foreign Loans Indorsed.
A cablegram (copyright) from Havana, March 8, is taken
as follows from the New York "Herald Tribune":
The proposal for a two-year moratorium on payments on account of
principal of Cuba's foreign loans was approved unanimously at a meeting
held here to-day by the directors of the American Chamber of Commerce.
Indorsement was given also to the resolution adopted by the Cuban Chamber of Commerce to similar effect.
Bank Holiday in Cuba.
A three-day bank holiday for all banks in Cuba, effective
March 6 and continuing through Wednesday, March 8,
was decreed on March 5 by President Machado. Havana
advices on that date to tho New York "Times" said:
It is understood the action was taken at the request of the Havana
Clearing House as a result of similar holidays in the United States and
affeet,(1
especially in New York. The New York holiday hag seriously
h 0,0
banking operations in Havana, where several New York banks
branches.
extraordinary
The Presidential decree, numbered 303, was published in an
operations in
edition of the Official Gazette. It provides that all banking
days, but
the territory of the Cuban Republic shall be suspended for three
municipalities.
exempts checks made payable to the State, provinces or
Cuban Gov"It is hardly necessary to add," says the decree, "that the
good of
ernment will co-operate with the banks to the fullest extent for the
under the law."
the country and the depositors, extending every aid possible
Bank arrived
A shipment of $1,000,000 consigned to the Chase National
According to reports current here,
this morning by air, it was revealed
from its main
the National City Bank will receive $2,000,000 to-morrow
office In New York.
situation other than
Bank officials here declined to comment on the
Thursday, adequately
to say they would be open for regular business on
prepared for any eventuality.
Volume 136
Financial Chronicle
Under date of March 8 further advices from Havana to
the "Times" stated:
The three-day banking holidays which went into effect in Cuba on March 6
was extented to include March 9 by a decree signed by President Machado
to-night.
Banking operations connected with the production, manufacture,sale.
transportation and exportation of Cuban products are exempted from the
decree and payments against importations of all classes of merchandise
can be made upon authorization of the Treasury.
Withdrawals of deposits on March 9 will be limited to 10% until March25.
Deposits made after March 9 will not be subject to limitation.
Issuance of this decree followed a series of meetings to-day between
members of the Havana Clearing House and administration officials and
it is understood to be in accordance with the wishes of the United States
branch banks here. President Machado said in a preamble his decree that
continuation of the banking holiday in the United States, made it imperative that the administration take prompt action to protect the branch
banks and their Cuban depositors.
Associated Press accounts from Havana March 7 had the
following to say:
Secretary of State Ferrara said to-day that $15,000,000 would reach Cuba
to-morrow to bulwark reserves of banks here against their reopening, set
for Thursday.
The Secretary made the announcement after a telephone conversation
with the governor of the Federal Reserve Bank in Atlanta. Following
heavy withdrawals Saturday, President Machado on Sunday decreed a
banking holiday until Thursday morning.
Over and above its usual daily receipts to keep cash on hand at around
$10,000,000, the normal figure. the Federal Reserve up until to-day had
received an additional $6,000,000. The receipts expected to-morrow will
raise its supplies, according to unofficial estimates, to around $30,000,000.
Branches of United States banks (including the National City and the
Chase National) had received another $7,000,000 from their head offices
before President Roosevelt placed an embargo on gold exportations.
No official action was announced to-day on the associated merchants'
request last night that President Machado extend the banking moratorium
to cover all commercial obligations falling due in the three-day period.
Bankers pointed out that the moratorium, in effect, exists, since no creditor
Is pressing for payment.
While government spokesmen reiterated their confidence in the American
banking system, the public appeared to be taking the closing of the banks
with increasing good humor.
Tourists are finding it possible to cash travelers' checks, while hotels
and other establishments are extending credit and limited cash. Checks
against deposits in the closed institutions are accepted quite freely.
On March 7 it was stated in Associated Press accounts from
Havana that censorship banned publication of announcements of the bank moratoria in the United States.
Argentina Quotes Francs—Abandons Dollar as the
Basis of Exchange Operations.
The following from Buenos Aires, March 6, is from the
New York "Times":
The Argentine Government abandoned the dollar as the basis of exchange
operations to-day and adopted the French gold franc at a rate of 14.84
gold francs per gold peso, which recently had been quoted at 58%
American cents.
Dollar exchange operations were paralyzed except on the Exchange.
Trading in paper dollars was carried on and the rates were whatever the
buyer could squeeze out of the seller. Otherwise the banking situation in
the United States had little effect here. There was a light run on immigrants' savings accounts in two American branch banks, but it subsided as
soon as the depositors, mostly Slays, saw that the banks were ready to
pay out funds on demand. Withdrawals from current accounts were less
than usual for a Monday. The city government sent extra police to guard
the two American banks and prepared for eventualities that did not
materialize.
The wheat quotation rose an equivalent of 1 cents a bushel and there
is a growing opinion that Argentina will benefit by the United States
situation if it continues.
On March 7 an announcement issued by the Department
of Commerce at Washington said:
The Argentine peso has been pegged provisionally to the French franc,
at the rate of 14.84 francs to the gold peso, according to a cable to the
Commerce Department from Commercial Attache Alexander V. Dye,
Buenos Aires.
The dollar, to which the peso was previously pegged, will now be quoted
In Buenos Aires at rates varying approximately with such fluctuations as
may occur in the franc-dollar cross rate, instead of having a fixed quotation.
Argentine importers, therefore, must now give due consideration to the
possibility of fluctuation in dollar exchange, when placing orders in the
United States.
Buenos Aires (Argentina) Banks Refuse Re-Deposits—
Crowds Who Drew Savings from American Institutions Reported as Trying Vainly to Replace
Them.
In its March 9 issue the New York "Times" published the
following from Buenos Aires, March 8:
The two branches here of United States banks were crowded to-day with
people trying to re-open savings accounts they had closed Monday and
Tuesday, but the banks refused to accept their deposits. Those who had
closed their accounts in an American bank found it impossible to deposit
others elsewhere. The management of both banks had recently reduced
the interest rate on savings accounts and said they were glad to have a portion of excessive, unusable fund removed.
The two banks appealed to President Justo against sensational misrepresentation in certain afternoon newspapers and the campaign ceased
immediately.
Although the dollar was not quoted officially and the banks did not
operate in dollars to-day, money exchange shops resumed dealings in dollars. paying as high as 4.50 pesos per dollar, compared with 4.80 before
the bank holiday in the United States. Their selling quotation was 5 pesos
to the dollar, the same as before.
Sterling dropped the equivalent of 3 cents, being quoted at 13.62 pesos
to the pound, compared with yesterday's 13.73. To-day's rate was the
1647
equivalent of $3.50, compared with yesterday's $3.53. The March 4
quotation was 13.52 pesos, the equivalent of $3.48.
The grain market was quiet, awaiting the effect of the end of the bank
holiday in the United States.
On the previous day (March 7) a cablegram from Buenos
Aires to the "Times" stated:
Banking operations, including foreign exchange, continued normally
to-day, but the dollar was not quoted. There was a movement for withdrawal of savings accounts from American banks following alarmist editorials In the sensational press, but it subsided when depositors found they
could take out their entire deposits without difficulty.
Sterling improved in relation to the peso. Grain quotations suffered a
sharp decline, wheat dropping 14 centavos a quintal, equivalent to 1 cent
a bushel at the last dollar quotation. Corn dropped 9 centavos and flaxseed 15 centavos a quintal.
Brazil to Require Price Certification on Commercial
Invoices by Chambers of Commerce or Others.
It was announced Feb. 21 by the United States Department of Commerce that the Bank of Brazil has advised
that, effective March 15, it will require that prices shown
in the commercial invoice covering shipments to Brazil must
be certified as being correct by the Chamber of Commerce
at the place of shipment or embarkation, or by an organization or individual designated by the Chamber of Commerce, according to a cable to the Department of Commerce
from Commercial Attache Carlton Jackson, Rio de Janeiro.
The Department, in announcing this, added:
These regulations also provide that exchange for the liquidation of drafts
drawn on Brazilian firms from abroad will only be supplied when the amount
of the draft corresponds to the value declared on the consular invoice.
If the currency mentioned on the consular invoice is not the same as that
in which the draft is drawn, conversion will be made from one currency
to the other at the exchange rate of the day of the emission of the consular
invoice. Should the sums mentioned in the draft and in the consular
invoice vary, exchange will only be granted on the basis of the amount
shown on the consular invoice. Furthermore, the amounts shown in the
commercial and consular invoices must agree.
Dutch East Indies Government Accepts Rice for Taxes.
Rice paddy, or rice in its rough form, will be accepted in
lieu of cash for payment of Dutch East Indian land taxes,
it is stated in a report to the Commerce Department from
Assistant Trade Commissioner C. H. Boehringer, Batavia,
Java. In making this known on March 1 the Department
added:
In order to make it easier for natives to pay their land taxes, the
Government has decided that the paddy will be accepted. The plan will
be tried out first in certain areas, especially in those areas where the
natives are long in arrears in their taxes.
It is reported that the Governors of West Java, Mid-Java, and East Java
will be consulted soon as to the places where the procedure will first be
put into operation. The trials will be made as soon as possible in order
to gain experience which may be used when the large rice crop comes in
during July and August.
In the event that the plan proves a success, it is reported that it will
be applied on a larger scale and apparently on a number of other products.
The paddy which will be taken over from the natives will probably be
sold in those areas where the crop was less favorable than usual and in the
urban centers.
Philippine Banks Open.
A wireless message from Manila, P. I., March 6, is taken
as follows from the New York "Times":
Governor General Theodore Roosevelt and the heads of all banks in
Manila spent most of yesterday conferring on the possible necessity of
calling a bank holiday here as a result of pressure caused by conditions in
the United States. However, after a full report of available resources had
shown that all banks were sound and abundantly provided with funds, the
conference decided no holiday would be necessary.
Governor Roosevelt said he had full confidence that no emergency
measures were needed.
Associated Press accounts from Manila, March 6, stated:
Gov. Gen. Theodore Roosevelt announced to-day that all banks in the
Philippines would continue open, Secretary of War Dern and Secretary
of the Treasury Woodin having approved.
Pir Responding to Secretary Dern's inquiry, Governor Roosevelt, after a
night conference with his Cabinet and bankers, telegraphed that unless
the holiday were mandatory the banks would continue to do business as
usual, there being no need to close.
To-day's reports, bankers said, showed a "gratifying" gain in deposits.
Brokers reported that Philippine securities were strong to-day, but sales
were few. Foreign dealings were suspended.
On March 6 Associated Press advices from Honolulu said:
Officials of banks in Hawaii' aid to-day they might equest permission
of the Federal Government to remain open for business during the holiday.
Meanwhile they suspended operations In compliance with President Roosevelt's proclamation.
"Our banks are in excellent condition," said Governor Lawrence M.Judd.
"There has been a minimum of local uneasiness."
4.
Manila Banks Forestall Speculation in Dollars.
From the New York "Herald Tribune" we take the
from Manila (P. I.), March 7:
Business continued as usual in Manila to-day while banks, under the
authority of the Secretary of the Treasury at Washington took steps to
forestall speculation in dollar exchange without restricting trade.
Bankers set an arbitrary dollar rate of 1.9925 pesos, which represents a
discount of % of a cent, pending resumption of free exchange. They also
1648
Financial Chronicle
tentatively sold sterling at the gold par rate, $4.87, with the proviso that
whatever rate is later determined shall prevail.
Bank withdrawals were reported normal. Governor General Theodore
Roosevelt pointed out that the banks had more than enough cash available
In their vaults and the insular treasury to pay all deposits.
Algerian Government Borrows.
Paris advices are taken as follows from the "Wall Street
Journal" of Feb. 27:
The issue of a 4%% loan of the Government of Algeria at 90 to the
amount of 810,000,000 francs, which can be increased to 850,000,000
francs, follows closely the 4%% 2,000,000,000 franc post office loan.
Both are intended to repay French Treasury advances.
New Zealand Loan Conversion—Dominion to Refinance
Internal Debt of $690,000,000.
was introduced in the New Zealand Parliament
recently calling for conversion of the total internal government debt of £115,000,000 to a 4% interest basis, effective
April 1 1933, according to a report from Consul Calvin
Flitch, Wellington, made public by the Department of Commerce on March 3. The Department also said:
A bill
Any holders sacrificing more than 20% of current interest are to be
compensated by an equivalent amount of new security.
The estimated budget saving is £570,000 annually. Similar legislation
is contemplated for local body debts.
Under date of March 1 Associated Press accounts from
Wellington (New Zealand) stated:
The £115,000,000 conversion loan which the Government launched
yesterday is receiving ready voluntary support, but it is understood that
those who do not convert their holdings will be penalized by a one-third
reduction of their interest percentage.
The first 24 hours following opening of the conversion loan resulted
in applications totaling £21,000,000. The Government is urging all
holders to convert their bonds and expects by the flotation to save the
country about £250,000. The loan reduces the national debt holdings
to a 4% basis.
A Government debt conversion bill will be introduced in the Assembly
to-morrow, empowering local bodies to convert internal debt of about
/
£40,000,000 on a basis of 412% interest.
On Feb. 28 a cablegram from Wellington to the New York
"Times" had the following to say:
Conversion of the whole of New Zealand's public debt held internally
was announced by Finance Minister Coates to-night. It affects a total of
$590,000,000 and is estimated to save $2,800,000 in this year's budget.
The conversion will bring all Government bonds to a uniform level of 4%
and will affect 42% of the nation's total debt.
The plan is to go into effect immediately, and the scheme is so arranged
that no bondholder will be asked to sacrifice more than 20% of his income
from his holdings. The average rate on the bonds is now 41
h%.
Financial Situation in China as Related to American
Banking Holiday.
On March 8 the Department of Commerce at Washington
said:
During the present United States banking holiday the exchange banks in
China are not quoting the United States dollar, according to a radiogram
to the Commerce Department from Commercial Attache Julean Arnold,
Shanghai.
Limited business in that currency is being done, however, by speculators.
at a rate giving the Chinese tael an equivalence of 33 cents United States,
as compared with $0.2894 on March 3.
The banking situation in China is undisturbed by the American holiday.
The banks in China are in general overstocked with silver.
The Central Bank of China is maintaining the customs gold unit on the
basis of London bullion market quotations as cabled to China.
Gov. Beverley Asks Bank Powers for Puerto Rico—
Working Out Plans for Scrip and Emergency
Wage Arrangements.
From the New York "Times" we take the following from
San Juan, Puerto Rico, March 7:
Governor Beverley sent a message to the Puerto Rican Legislature this
afternoon saying that, due to the general world situation, the banking
system here required strong measures and asking for special emergency
powers, including that of suspending temporarily the law requiring payment of wages in legal tender and authority to perinit banks to issue scrip
or certificates.
Bankers appeared before the Legislature and, with the Governor, undertook to work out plans for the banks to meet United States Treasury
requirements as well as temporary measures set up by the New York
banking system.
Puerto Rico Decrees Holiday.
A wireless message from San Juan, Puerto Rico, March 5
to the New York "Times" stated:
Puerto Rico will have a three-day bank holiday beginning to-morrow
under a proclamation issued to-day by Governor Beverley dated March 4.
The proclamation declares the action is necessitated by similar holidays in
the United States, particularly in New York State.
All banks in Puerto Rico are dependent upon New York for supplies
of cash and credit, and with transactions there suspended, the Island banks
must work out some system similar to the temporary measures there to
conserve cash. Heavy withdrawals from the National City Bank of New
York continued until late yesterday, with all depositors paid who wanted
money. Most withdrawals were from savings accounts.
March 11 1933
Further ad-vices from San Juan, March 6, were reported
in the same paper:
The National City Dank to-day brought in $1,000,000 in currency by
airplane. following Saturday's heavy withdrawals.
Governor Beverley promulgated the Presidential order calling for the
banks to close until Friday. In conference with the Governor, bankers
discussed plans for safeguarding the local currency supply.
On March 7 San Juan advices to the "Times" stated:
The San Juan branch of the National City Bank received a second
shiphient to-day of $1,000,000 in currency. Both shipments left New
York just before the declaration of the bank holiday. the first by airplane
and this one by steamship.
Steamship companies to-day paid stevedores in nickles obtained front
the street car company and motor buses.
The following wireless message from San Juan, March 9,
is from the New York "Herald Tribune":
Disregarding efforts of the Island Legislature to limit his action in the
banking emergency, Governor James R. Beverley to-day promulgated an,
order extending tne present banking noliday until the end of next week.
In a later order he allowed banks permission to open for business daily,
beginning Monday. but only under the regulations set by the Treasury at
Washi.gton and rules laid down by the Governor here.
While the holiday lasts banks in Puerto Rico are forbidden to accent
new accounts and withdrawals are limited to 5% of present deposits. No
gold coins or gold certificates may be withdrawn. Toe rules are to be
liberalized when need is proved.
Wnen tne Governor's order was issued a bill passed by the Legislature
early this morning and requiring consultation with the Legislature's Economy Coinmission previous to any action in the emergency was on Mr.
Beverley's desk unsigned.
John H. Holliday Sworn In as Vice-Governor of Philippines—Will Be Acting Governor With Theodore
Roosevelt's Resignation.
John H. Holliday of Missouri was sworn in as ViceGovernor of the Philippines on March 8 and will be Acting
Governor-General after Governor-General Theodore Roosevelt leaves March 24. Associated Press advices from Manila.
March 8 said:
Governor Roosevelt's resignation was accepted by President Roosevelt
In Washington yesterday.
Mr. Holliday, a Republican and former St. Louis attorney, has been here
since last March when he was made legal adviser. He was appointed
Vice-Governor in August when Governor Roosevelt planned to go to the
United States to assist in Mr. Hoover's campaign for re-election. Mr.
Roosevelt changed his plans and did not go to the mainland.
Since expiration of Mr. Holliday's previous appointment by former
President Hoover, which was never confirmed by the United States Senate,
the Missourian has held the title of legal adviser to the Governor-General.
In a statement Governor Roosevelt said, "Naturally I am deeply sorry
to leave the Philippines," adding he hoped his administration had been
successful.
Manuel Quezon, President of the Philippine Senate, said:
"I am sure the country will regret deeply Governor Roosevelt's leaving.
He has devoted himself to the service of the Filipino people with the single
view of their welfare.
"We are fortunate in having as Acting Governor a man who is familiar
with our affairs and who has demonstrated his ability to cope with problems.
confronting the islands."
On March 7 it was stated in a dispatch from Washington.
to the New York "Herald Tribune":
President Roosevelt accepted to-day the resignation of Colonel Theodore
Roosevelt, his fifth cousin, as Governor-General of the Philippine Islands.
He gave John H. Holliday. of Missouri, the present Vice-Governor, an
ad interim appointment to continue in his present office and to serve as
Acting Governor beginning March 24, when Colonel Roosevelt plans to
sail for the United States.
Homer S. Cummings, of Connecticut, the present Attorney-General, is
slated to go to the Philippines as Governor-General when he has completed
his temporary service in the Cabinet. The death of Senator Thomas J.
Walsh, of Montana, Mr. Roosevelt's original choice for Attorney-General.
prevented Mr. Cummings from sailing immediately after the inauguration.
The White House announcement to-day stated:
"Colonel Theodore Roosevelt had indicated his desire to return to the
United States on March 24, but had stated a willingness, in view of the
existing economic situation, to postpone his departure to a later date.
In taking this action, the President conveyed his cordial appreciation of
Colonel Theodore Roosevelt's offer to subordinate his personal plans because
of the existing economic situation."
During the recent campaign. Colonel Roosevelt broadcast a speech for
President Hoover from Manila, his mother appeared publicly in Mr.
Hoover's behalf, and his half-sister, Mrs. Alice Longworth, also was an
open advocate of Mr. Hoover's re-election. The late Corinne Douglas
Robinson, sister of President Theodore Roosevelt, refused, however, to
join in the political opposition to her distant cousin. Neutrality also was
observed by Colonel Roosevelt's younger brother, Kermit, who accompanied the President-elect on his cruise last month.
President Whitney of New York Stock Exchange Says
Uniform and Sound Laws Governing Incorporations Must Be Adopted if Recurrence of Security
Inflation of 1928 and 1929 Is to Be Prevented.
Speaking before the Cleveland Chamber of Commerce at
the Hotel Statler, in Cleveland, on Feb. 28, Riehard Whitney,
President of the New York Stock Exchange stated that "If
we are to prevent a recurrence of the security inflation of
1928 and 1929, uniform and sound laws governing incorporation must be adopted." Mr. Whitney went on to say in
!,art.
It is now generally recognized that the lack of complete disclosure of
the results of business operations contributed to the inflation of security
values which preceded the panic of 1929. More frank and more corn-
Volume 130
Financial Chronicle
plete information might have prevented many people from assuming that
profitable operation would continue indefinitely. Investors were satisfied if it appeared that their company had earned more in the current
year than in the preceding period and were induced by that information
alone to hope that the future would show nothing but increasing profits.
Had they known that in some instances a large . part of these profits
were due to non-recurring and fortuitous circumstances, and in others
to the use of accounting methods which resulted in an overstatement of
income, they might have been less optimistic and security prices might
not have become so inflated.
The public to-day insists upon more competent and accurate financial
statements from publicly owned companies and I am sure that the officials
and directors of these corporations, realizing the reasonableness of this
demand, will furnish investors with adequate information. There have
not been many instances where the failure to give complete information
was due to a desire on the part of directors or officers to secure unfair
personal advantage. Many company officials did not publish complete
financial statements because they were afraid that the disclosure of too
much information would put their companies at a disadvantage in meeting competition, not only from other American corporations, but frequently from foreign companies engaged in the same line of business.
This fear, though genuine, has in large measure proved to be unfounded.
For a number of years past, the Stock Exchange has been urging the
publication of corporate reports in such manner as to show not only the
true facts but also to serve as far as possible as an indication of earning
capacity. Any attempt to enumerate the various steps taken in this
direction would read like a catalogue. In approaching the subject, the
Exchange has felt that true progress can only be attained by evolutionary
rather than revolutionary methods. Our efforts have been directed along
this line and have taken the form of a number of public pronouncements
upon specific matters such as stock dividends, investment trusts and accounting practices. In addition, there have been daily conferences and
almost daily correspondence between the Stock Exchange and the officers
and other representatives of corporations, as well as with accountants,
lawyers and bankers. Officials of the Exchange have made addresses to
accountants at various public gatherings, seeking to draw attention to
certain problems of accounting regarding which proper practices had
not been generally adopted and where progress seemed possible only
through concerted action. An important result of this policy has been
a growing and, in many instances, a most cordial degree of co-operation
between • the Exchange and those company officials who must determine
the amount of information to be included in financial statements and
the methods by which the results of operations will be reported. A
comparison of the financial statements of listed companies for the year
1932 with those of a few years ago, will show what great progress has
been made in securing the publication of more complete information.
If what we have accomplished seems to have fallen short of what
might have been done, you must bear in mind that it is only in the
case of new enterprises that the Exchange can make all of its present
policies immediately applicable to listed companies. Such an opportunity
occurred a few years ago when management investment trusts first made
their appearance, and the Exchange adopted the policy of requiring full
publicity not only in regard to the results of operations, but also as to
their security investments and, furthermore, prescribed in detail the accounting methods to be used in the preparation of financial reports to
stockholders
These requirements of the Exchange insured, in the case
of the listed investment trusts, and of many others which have followed
the example set, adequate presentation of their affairs.
Notwithstanding the substantial progress already made, we all realize
that company financial statements must be even more complete and more
accurate. Many questions of accounting really involve the exercise of
opinion and judgment. The best assurance of accurate statements lies
In the competence and independence of the accountants. While the fact
is not perhaps generally recognized, a large proportion of our major
companies have in recent years had their accounts audited by independent
auditors. Believing that this should be the universal rule applicable to
all companies which seek capital from the public at large, the Exchange,
which has been steadily urging listed companies to have their accounts
audited, has now adopted definitely the policy that all companies seeking listing must have independent audits. We must remember, however,
that the value of these audits will depend in large measure upon whether
the accountants who prepare them apply accepted accounting methods.
The American Institute of Accountants, by its recent action to define
certain standard accounting principles, has taken an important step
towards the solution of this phase of the problem. . . .
In discussing this problem we should not minimize the obstacles in
the way of making such requirements uniform throughout the United
States. The power to pass laws governing the incorporation of companies is vested in the states. There are therefore forty-eight different
jurisdictiona in which companies may be incorporated, and the laws
of the states vary greatly. Unfortunately some of our states, in order
to secure revenue from fees, taxes, etc., have adopted exceedingly liberal
corporate laws. Such laws have permitted practices which have resulted
In great detriment to investors. Inasmuch as under the Federal Constitution a corporation created in one state can, under certain conditions,
engage in business in another and can sell its securities anywhere, the
states wishing to establish sound corporate practices are often at the
merry of the too liberal laws of sister states.
In an attempt to protect their citizens, many of our states have adopted
Blue Sky Laws intended to prevent the sale of unsound securities. Blue
Sky Laws are not a substitute for sound uniform laws governing incorporation. If we wish really to prevent the distribution of unsound
securities we should strike at the root of the matter and prevent the
Issuance of such securities instead of merely preventing the sale of
them after they have been issued. The attempt of our states to regulate
security sales is a good example of the truth of the old adage that an
ounce of prevention is worth a pound of cure. Furthermore, a uniform
corporation law could establish proper penalties for officers or directors
who publish misleading statements or prospectuses. In short, by a
uniform law governing incorporations, the possibility of abuse in the
Issuance and sale of securities which is inherent in the existing situation can be prevented. A federal corporation law might be enacted, but
if for any reason that should prove impracticable, then the adoption of
a uniform law by the several states is a vital necessity.
I have endeavored in these remarks to touch upon some of the
difficulties which have beset the investor in securities in this troubled postwar period. I realize that there are many more problems both at home
and abroad which remain to be solved before we can expect the return
of stability in business or the resumption of international trade which
is so essential to prosperity. We shall need all of our wisdom and all
of our courage to wive these problems. No matter what the ultimate
solution may be, it is certain that the task of reconstruction cannot be
accomplished without the steady investment of the saving of individuals.
1649
There is no substitute for this way of raising capital. Every possible
means must be adopted to safeguard the vast number of investors who
furnish capital to industry and who by so doing aid and assure the return
of normal business conditions.
In spite of present discouragements we must remember that the depression has not paralyzed scientific progress nor halted invention. New
products and new services are at this very moment awaiting the return
of economic equilibrium and a new flow of investment funds into the
productive effort of men's brains and hands. Thrift and private investment are not, therefore, simply a phase of our past—they are an imperative need now and for the future, and they must be safeguarded. We
have borne the risks of pioneering and colonizing a continent We must
now, through thrift, self-control and individual initiative, complete the
task of building a great civilization.
Trading Suspended on New York Stock Exchange and
Other Exchanges Incident to Bank Holiday—
Entire Nation Affected.
With the declaration of the 2
-day bank holiday by Governor Lehman of New York on March 4, the New York
Stock Exchange and all the other security and commodity
exchanges in New York suspended trading for the duration
of the holiday provided in the Governor's proclamation
(March 4 and 6). Following the issuance of the Governor's
proclamation, President Roosevelt proclaimed a 4
-day bank
holiday from March 6 to 9 inclusive, as a result of which
trading has continued to be suspended pending the termination of the banking holiday put in force by the President,
and which on March 9 was continued indefinitely by the
President. Virtually all the security markets throughout
the country, it is understood, have suspended trading incident to the President's bank-holiday proclamation. In
its issue of March 5 referring to the closing of the stock
markets in New York, the New York "Times" said:
It was the third time in the history of the Stock Exchange that tradingwas suspended because of widespread unsettlement. The other two
occasions were Sept. 18 1873, during a panic, and July 31 1914, when the
World War began.
Security and commodity markets throughout the Nation were closed
for the most part yesterday, as a result of bank holidays in the various
States. Among the exchanges that closed were the Chicago Stock and
Curb Exchanges, the Chicago Board of Trade, Philadelphia Stock Exchange, Cleveland Stock Exchange, Kansas City Board of Trade, Pittsburgh Stock Exchange and Cincinnati Stock Exchange.
• With trading in stocks, bonds and commodities at a standstill, a few
employees of brokerage firms in the Wall Street district were excused from
their work early in the day, and were told not to report until Tuesday
morning. Streets in the financial district rapidly took on the quiet appearance characteristic of holidays.
President Whitney Announces Closing.
Announcement of the closing of the New York Stock Exchange during
the bank holiday was made from the rostrum by Richard Whitney, President of the Exchange, at 9:45 a. m. When Mr. Whitney mounted the
rostrum with a statement in his hand, 15 minutes before the usual signal
for the beginning of trading, there was a tense moment as brokers crowded
forward to hear his remarks.
A gong sounded, and Mr. Whitney said:
"In order to comply with the bank holiday declared by the Governor
of the State of New York, the Governing Committee of the Exchange.
at a meeting held this morning, declared that the Exchange shall be closed
during such bank holiday. All members shall therefore conduct themselves
in accordance with the holiday thus declared.
"The Governing Committee, in order to give full effect to such bank
holiday, prohibited members of the Exchange from making in the State
of New York or elsewhere and either over the counter or otherwise, any
contracts for the purchase or sale or the borrowing or lending of any securities, and also from permitting their offices or facilities to be used for the
making or carrying out of any such contracts.
"The Governing Committee also suspended delivery on all contracts
of the members of the Exchange, except on such contracts as may be
cleared by or settled through Stock Clearing Corporation, and in such
cases delivery shall be made as Stock Clearing Corporation shall direct."'
Mr. Whitney's statement was received silently by the brokers. Because of the expectation that the Exchange would be closed, few buying
or selling orders had been received by brokers. There was no sign that a
heavy volume of sales had accumulated overnight because of uneasiness
of security owners, or the desire to raise funds.
Market Has Been Firm.
Another meeting of the Governing Committee of the Exchange is expected
to be held this morning, or tomorrow, at which plans for the resumption of
trading will be discussed.
The written notice of the Exchange holiday issued to all members by
Ashbel Green, Secretary, was virtually a duplicate of Mr. Whitney's
announcement. Mr. Green's notice said:
To Members of the Exchange:
The Governing Committee at a meeting held tots morning, in order to
give full effect to the banking holiday declared by the Governor of the State
of New York, directed:
1. That the Exchange be closed during such holiday.
2. That members and firms registered on the Exchange be prohibited
from making any contracts for the purchase or sale or the borrowing or
lending of any securities and also from permitting their offices or facilities
to be used for the purpose of making or carrying out any such contracts.
3. That deliveries be suspended on all members' contracts except on
such contracts as may be cleared by or settled through Stock Clearing
Corporation and that in such cases deliveries shall be made as Stock Clearing
Corporation shall direct.
All members are directed to give full effect to the legal holiday declared
by the Governor of the State of New York.
Friday's Business Cleared.
The Stock Clearing Corporation, subsidiary of the Stock Exchange,
announced that contracts made on Friday would be subject to a "special
clearance" yesterday, although normally Friday's transactions are not
cleared until Monday. Although the brokers filled out the usual sheets
and tickets for the Clearing Corporation yesterday, clearance could not be
consummated because of the bank holiday.
The Stock Clearing Corporation's notice to members was as follows:
Stock Clearing Corporation directs that contracts made Friday, March 3.
be the subject of a special clearance to-day. Date your sheets and tickets
March 7. Submit sheets as usual to-day. Later instructions will be given
relative to the distribution of security balance orders. All member offices
1650
Financial Chronicle
shall be open on Monday in order to carry out any late instructions given
by Stock Clearing Corporation to complete said clearance and settlement
of open contracts.
The effect of yesterday's clearance was that balances of money or securities
which were due the various brokerage firms, on Friday's trading, were
ascertained,so that deliveries could be effected as soon as the banks reopen,
or as soon as instructions are given concerning such deliveries. . . .
The New York exchanges that closed yesterday included the Curb
Exchange, New York Coffee and Sugar Exchange, New York Cotton
Exchange, National Metal Exchange, Rubber Exchange of New York,
New York Cocoa Exchange, New York Hide Exchange, National Raw Silk
Exchange, New York Produce Exchange and Bank Stock and Unlisted
Dealers Association.
.
On March 6 the Committee on Publicity of the New York
Stock Exchange issued the following notice:
COMMITTEE OF ARRANGEMENTS NOTICE.
All offices of members, both main and branch, shall remain open daily
until further notice.
An announcement regarding the appointment of a Committee of Seven was made as follows by the Committee on
Publicity of the New York Stock Exchange:
The Governing Committee at a Special Meeting this morning appointed
the President and Messrs. Johnson. Lindley, Nash, Noble, Simmons and
Turnbull as a Special Committee to deal with all questions arising out of
the closing of the Exchange and the suspension of deliveries.
On March 6 the following notice was issued by the New
York Stock Exchange:
In view of the bank holiday declared by the President of the United
States, the Special Committee of Seven has ruled that the Exchange shall
remain closed until further notice. Said Committee has further ruled that
all deliveries of members' contracts be suspended until further notice
except such contracts as may be cleared by or settled through Stock Clearing
Corporation, and that in such cases delivery shall be made as the Stock
Clearing Corporation shall direct.
STOCK CLEARING CORPORATION NOTICE.
Stock Clearing Corporation directs that all deliveries on contracts which
may be cleared by or settled through the Stock Clearing Corporation be
suspended until further notice.
Further announcements March 6 by the Committee on
Publicity of the New York Stock Exchange follow:
Thu Special Committee of Seven appointed by the Governing Committee
to deal with all questions arising out of the closing of the Exchange has made
the following Rulings which will remain in effect until further notice:
1. No Member shall pay to customers free credit United States dollar
balances in currency. No Member of the Exchange shall give a check for
any free credit United States dollar balances. Free credit balances in
foreign currencies held outside the United States are not effected by this
ruling.
2. Fully paid for securities are deliverable to customers on demand
unless the Member is unable to secure such securities by reason of the closing
of safe deposit companies, transfer offices, or the fact that such securities
are in transit, or for some similar reason. In determining whether securities
are fully paid for or not. Members should ascertain whether all prior transactions in money and securities have in fact been cleared and completed.
3. Members may receive U. S. currency in payment of debit balances.
Securities which become fully paid for by reason of such payments are
deliverable to customers provided it is not impossible for the member to
obtain such securities by reason of the b...nk holiday.
Members shall not credit checks received in payment of debit balances.
4. The prohibition adopted by the Governing Committee on March 4 1933
In regard to the making of contracts in securities is hereby modified to the
extent that members may make contracts outside the United States for the
purchase or sale or the borrowing or lending of unlisted securities, provided
such transactions are made for the purpose of closing existing commitments.
Members are still prohibited from making contracts for the purchase or
sale or the borrowing or lending of any listed securities, whether such contracts are made in the United States or elsewhere, and are prohibited from
making any contracts in unlisted securities in the United States.
5. The date of delivery of all members' contracts which mature during
the bank holiday is extended until further notice. This includes seller's
option contracts, delayed delivery contracts in bonds, etc., and privileges
for the purchase or sale of securities, where notice of intention to deliver, or
call for delivery, has been given and accepted prior to March 4 1933. Privileges, where notice of intention to deliver, or call for delivery, has not been
given prior to March 4 1933,are not members'contracts, and are not affected
by this ruling.
6. Members are prohibited from executing or endorsing any privileges
for the purchase or sale of securities until further notice.
6A. Notice of intention to deliver or receive securities may be served or
accepted by members in regard to privileges executed or guaranteed by
members prior to March 4 1933.
7. Inquiries having been made as to premiums on loans of stock, the
Special Committee of Seven directs that the usual practice of charging only
one day's premium. from one delivery date to the next delivery date, shall
apply, and, therefore, on loans of stock outstanding at the opening of business March 4 1933, one day's premium, at the rate then prevailing, shall be
charged, down to and including the first day when deliveries of securities
are permitted. The Conunittee will hereafter fix the time by which notice
of intention to return or call borrowed or loaned stocks must be given to
take effect on the resumption of deliveries.
8. In order to avoid congestion on the resumption of trading, all members, including specialists, bond brokers and odd-lot dealers, shall, while
the Exchange is closed, maintain facilities in their offices for the receipt,
cancellation and change of orders.
9. Due-bills for dividends shall accompany final deliveries on uncompleted contracts in all stocks for which a dividend record date occurs during
the period when deliveries are suspended.
10. On all stocks for which a dividend record date occurs subsequent
to March 4 1933, but during the period when trading is suspended,specialists
shall reduce by the amount of the dividend the following kinds of orders
received prior to the dividend record date:
(1) Open buying orders;
(2) Open stop orders to sell.
Orders received by specialists on or after the dividend record date shall
not be reduced.
On March 8 the Committee on Publicity issued the following announcements:
11. On all open contracts regular way for the delivery of United States
Government obligations, not including contracts where the seller failed
March 11 1933
to deliver prior to March 4 1933, interest at the coupon rate shall be computed down to, but not including, the date fixed by the Exchange for
the resumption of deliveries.
On all open contracts regular way for the delivery of other bonds "and
interest," not including contracts where the seller failed to deity& prior
to March 4 1933, interest at the coupon rate shall be computed down
to the date on which such bonds would have been deliverable had deliveries not been suspended. Interest thereafter until the date fixed
by the Exchange for the resumption of deliveries shall be computed at
4% per annum on the value shown by the comparison.
"On all open contracts "seller's option" or "delayed delivery" for the
delivery of bonds "and interest," not Including contracts where the seller
failed to deliver prior to March 4 1933, interest at the coupon rate shall
be computed in the usual manner, and if the last date for delivery on any
such contracts shall occur while deliveries are suspended, interest from
said last date down to the date fixed by the Exchange for the resumption
of deliveries shall be computed, on'Contracts for the delivery of United
States Government obligations at tke coupon rate, and on contracts for
the delivery of other bonds at 4% plc annum on the value shown by the
comparison.
"On all open contracts for the delivery of bonds selling "flat" and open
contracts where the seller failed to deliver prior to March 4 1933, and
also on all open contracts for other securities, no interest shall be allowed
on account of the delay caused by the suspension of deliveries.
12. After March 8 1933, transactions in commodities in foreign markets,
except transactions for the purpose of closing existing commitments, are
forbidden, unless the customer initiating any such transaction arranges to
finance the same outside the United States, and adequately margins such
commitment. Equities existing in United States dollar accounts shall not
be used either to finance or margin such transactions.
Ruling 13 relating to gold payments and withdrawals is
given elsewhere in our issue to-day.
The following was announced March 10 by the Committee
on Publicity:
14. All checks deposited in and drawn on or payable at New York
Clearing House banks, which have been cleared and collected, may now
be credited to customers' accounts, and securities which become fully
paid for as a result of such credits may be delivered.
On March 9 an announcement by the Committee on
Publicity said:
SPECIAL NOTICE IN REGARD TO PRIVILEGES.
March 9 1933.
In view of the inquiries received in regard to Rulings 5,6 and 6a. attention of members Is called to tbc fact that no ruling has been awned prolubiting members from receiving notice of intention to exercise pnvileges
written or guaranteed by members prior to March 4 1933. Where notice
of Inteetion to exercise such privileges was properly given but refused by
members due to a misunderstanding of the rulings, such notice should be
accepted. Where notice was not given due to a misunderstanding of the
rulings, members may, but are not required to, accept such notice.
Miscellaneous announcements by the Committee on
Publicity follow:
March 7 1933
Notice to Bond Firms
In accoidance with ruling number 8 of the Special Committee of Seven,
the cabinets in the Bond Crowd will be open for the receipt, cancellation
and change of orders.
ASHBEL GREEN,Secretary.
STOCK CLEARING CORPORATION.
March 8.
Comparisons of non-cleared bond transactions—excluding United States
Government obligations—which have been compared under date of March
7th pursuant to Stock Clearing Corporation ruling, should be re-compared
as of the date on which such securities would have been deliverable had
deliveries not been suspended. The comparisons on cleared bonds have
already been made as of the proper dates, and any additional interest on
cleared bond security balance orders payable under ruling No. 11 of the
Special Committee of Seven announced to-day, will be computed by Stock
Clearing Corporation and debited or credited to Clearing Members
accounts on the day of settlement.
STOCK CLEARING CORPORATION NOTICE.
March 9,
Stock Clearing Corporation directs that the commission bill clearance
for February transactions shall be completed as follows: On Friday,
March 10, payers will be notified of amounts due and shall by noon on
Saturday, March 11, deliver to Stock Clearing Corporation uncertified
checks drawn on a New York Clearing Wiese bank for the amounts due.
As soon as such checks can be certified Stock Clearing Corporation will
make the settlement of this clearance effective and will deliver its checks
to payees.
STOCK CLEARING CORPORATION NOTICE.
March 9.
Stock Clearing Corporation directs that recomparisons of non-cleared
bond transactions referred to in yesterday's ticker notice be not made until
such time as the Exchange announces a delivery date, and when such
announcement is made, recomparisons shall be made and shall Include
coupon interest and the additional 4% Interest item, as required by Ruling
(11) of the Special Committee of Seven.
Market Value of Listed Stocks on New York Stock
Exchange March 1, $19,700,985,961, Compared with
$23,073,194,091 Feb. 1—Classification of Listed
Stocks.
As of March 1 1933, there were 1,228 stock issues aggregating 1,296,231,953 shares listed on the New York Stock
Exchange, with a total market value of $19,700,985,961.
This compares with 1,231 stock issues aggregating 1,302,692,848 shares listed on the Exchange Feb. 1 with a total
market value of $23,073,194,091 and with 1,237 stock issues
aggregating 1,311,881,157 shares with a total market value
of $22,767,636,718 on Jan. 1. In making public the March 1
figures on March 6, the Exchange said:
Volume 136
Financial Chronicle
As of March 1 1933, New York Stock Exchange member borrowings on
security collateral amounted to $359,957,055. The ratio of security loans
to market values of all listed stocks on this date was therefore 1.83%.
As of Feb. 1 1933, New York Stock Exchange member
borrowings on security collateral amounted to $359,341,058.
The ratio of security loans to market values of all listed
stocks on that date was therefore 1.56%.
In the following table, listed stocks are classified by leading
industrial groups, with the aggregate market value and
average price for each:
March 1 1933.
February 1 1933.
Market
Value.
Autos and accessories
Financial
Chemicals
Buildings
Electrical equipment manufacturing
Foods
Rubber and tires
Farm machinery
Amusements
Land and realty
Machinery and metals
Mining (excluding iron)
Petroleum
Paper and publishing
Retail merchandising
Railways and equipments
Steel, iron and coke
Textiles
Gas and electric (operating)
Gas and electric (holding)
Communications (cable, tel. & radio)_
Miscellaneous utilities
Aviation
Business and office equipment
Shipping services
Ship operating and building
Miscellaneous business
Leather and boots
Tobacco
Garments
U.S. companies operating abroad_ _
Foreign companies (Incl. Cuba & Can.)
All listed stocks
Aver,
Price
Market
Value.
Aver,
Price.
$
825,307,233
629,795,434
1,583,610,876
112,781,979
489,896,112
1,481,935,515
105,675,055
171,842,910
47,999.670
22,293,431
613,314,057
473,200,£62
1,902,474,039
81.696,965
987,818,481
2,309,669,859
671,604,148
88,431,799
1,885,405,037
1,095,640,731
2,100,416,907
109,333,433
102,221,315
117,979,454
4,934,974
8,958.186
48,975,651
141,404,917
963,840,624
8,326,203
294,870,673
319,329,331
$
7.61
11,73
23.79
7.16
11.99
21.03
10.49
15.30
2.54
4.45
10.78
7.86
10.40
5.14
15.08
20.05
17.13
7.98
27.25
11.20
55.86
10.76
5.74
11.05
2.36
2.65
10.92
20.50
37.14
6.40
8.96
8.58
$
$
1.073.569.660
749.820.261
1.875,367.955
133,316,469
607,828.053
1.638.432.983
139,121,440
214.055.349
60,229,956
28,176,448
613.859.401
534,399,775
2.187.080.936
104.306,494
1,195,910.312
2.635.760,243
783.870,893
97,615.994
2,265.269.568
1.428,962.249
2,288,797,175
128,620.782
141,484,602
140,508,076
5,755,405
9.102,357
50,926,646
149,601,984
1.067.614,634
8.826,199
335,707,451
379.294,341
9.86
13.96
28.18
8.46
14.87
23.25
13.86
19.06
3.19
5.62
12.89
8.87
11.96
6.50
16.82
22.88
20.00
8.80
32.74
14.57
60.87
12.65
7.94
13.16
2.75
2.70
11.36
21.66
41.10
6.78
10.20
10.19
19,700,985,961 15.20 23.073.194,091 17.71
Committee Named by New York Produce Exchange
to Deal with Questions Arising out of Closing
Securities Market of the Exchange.
The following notice was issued Mar. 7 to members of the
New York Produce Exchange Securities Market:
At a meeting of the Committee on Securities the following resolutions
were adopted:
RESOLVED, that the Committee on Securities adopt a policy similar
to that of the New York Stock Exchange and New York Curb Exchange
with respect to Members' contracts in securities during the closing of
the Securities Market on the New York Produce Exchange because of
the Bank Holiday declared by toe President of the United States.
FURTHER RESOLVED,that Mr. I. D. Noll, Mr. Robert W. Moore
and Mr. Albert Wagner be appointed as a Special Committee of Three to
deal with all questions arising out of the closing of the Securities Market
on the New York Produce Exchange and the suspension of deliveries of
securities.
HERMAN H. PETRY,
Secretary, Committee on Securities.
Unlisted Dealers Association Prohibits Trading in
Both Listed and Unlisted Stocks.
As a result of a resolution passed to-day (Mar. 7) by the
Board of Governors of the Bank Stock and Unlisted.Dealers
Association, all over-the-counter houses, members of the
Association, are prohibited from trading not only in unlisted
securities, but also in securities which are listed on the New
York Stock Exchange and other exchanges of the country,
on the grounds that such trading would be considered unethical under existing conditions. It is stated that for
several days reports have been circulated of the possibility
of the springing up of a "curb" or "bootleg" market for
securities. The action of the Unlisted Dealers association
this week is regarded as preventing the establishment of
such a market so far as its members are concerned. The
statement issued by the association follows:
To All Members of the Bank Stock and Unlisted Dealers Association:
Supplementing previous instructions contained in a telegram dated
Mar. 4 1933, the Board of Governors at a special meeting on Mar. 7 1933,
approved the following:
RESOLVED that member houses are directed not to do business in
stocks listed on the New York Stock Exchange so long as that exchange
remains closed:further, it is directed that no member house of the association shall buy or sell securities over the counter until further notice from
the association; further, that violation of the letter or the spirit of the
above shall be construed as unethical conduct.
(Signed) OLIVER J. TROSTER,
Secretary.
Need for Relief from Burden of Taxes Pointed Out by
New York Trust Company-Burden Increased by
More Than Eight Billion Dollars Since 1913.
Need for relief from the crushing burden of State and local
taxation is brought home by "The Index," published March 4
by the New York Trust Co. The "Index" says:
1651
The Nation's aggregate tax bill increased from $2,259,000.000. or $23
per capita, in 1913 to $10,300,000,000, or $84 per capita, in 1930. During
-year period the total tax burden increased by more than eight billion
the 17
dollars, or 355%. It is significant that of this $8.018,000,000 increase.
$3.720.000,000, or approximately half, was accounted for by local governments, including municipalities, counties, townships and similar minor
taxing jurisdictions. State governments were responsible for an increase
of $1,480,000,000, or about one-sixth of the total, while the Federal Government accounted for $2,818,000,000, or approximately one-third.
It Is estimated that the expenditures of local governmental units in 1932
amounted to not less than $8,292,000,000. more than the combined cost of
Federal and State governments. It is thus evident that State and local
taxes absorb the major portion of the taxpayers' goner.
The consequences of excessive governmental overhead, necessitating the
imposition of these oppressive State and local taxes, are written large in the
economic history of the past few years. They are signalized in the bankruptcy of cities, in the collapse of bond issues, in the defaults of interest,
in the pages of newspapers filled with names of delinquent taxpayers, in
the forced sale of farms, in the recent revolts of taxpayers who have forcibly
opposed oppressive taxes now in effect or threatened for the future.
Plainly, these events not only call for careful study of the expenditures
necessitating these taxes, but also constructive action for relief.
James Rowland Angell Succeeds Calvin Coolidge as
Diretor of New York Life Insurance Co.
James Rowland Angell, President of Yale University,
was on March 8 elected to succeed Calvin Coolidge on the
Board of Directors of the New York Life Insurance Co.,
it was announced by Thomas A. Buckner, President of the
company,following a meeting of the directors. Mr. Coolidge
had served as director of the New York Life from May 8
1929 until his death Jan. 5 1933.
Dr. Angell was born in 1869 in Vermont, where both Dixwin P. Kingsley, the recently deceased Chairman of the
Board of New York Life, and Calvin Coolidge, whom Dr.
Angell succeeds as a director, were born. In 1890 he graduated from the University of Michigan, where his father was
long President. Dr. Angell holds honorary degrees from
17 universities, and has been President of Yale University
since 1921. With the election of Dr. Angell, two of the
Nation's leading educators serve on the Board of the New
York Life Insurance Co. Nicholas Murray Butler, President of Columbia University, has been a member of the
directorate since 1915.
Dropping of Affiliates by Chase National Bank.
Plans for cutting adrift the Chase Harris Forbes Corp. and
its parent, the Chase Securities Corp., which control the
largest security distributing system in the world, from the
Chase National Bank group of interests were announced on
March 8 by Winthrop W. Aldrich, Chaiman of the governing
board of the Chase National Bank of New York. From the
New York "Times" of March 9 we take the following:
The announcement followed by less than twenty-four hours the decision
of the National City Bank to divorce its security affiliate, the National
City Co. Mr. Aldrich in his statement' heartily commended the action of
the National City Bank," adding that "intimate connection between commercial banking and MN estment banking almost inevitably leads to abuses."
No definite time is set for the dropping of Chase Harris Forbes and
Chase Securities by the Bank, but in this connection it was said that a subcommittee had been named by the executive committee of the Bank to
report as soon as possible on ways and means of accomplishing the severance.
The suddenness of the decision by the directors of the Bank took many
officers of the Bank and the security affiliate completely by surprise, although it had been long known that a move to this end was under way.
liriggin Had Opposed Move.
The move on the part of the Chase National Bank interests is directly
opposed to the recommendations voiced by Albert H. Wiggin on Jan. 10
last, in his annual report to stockholders at the time he tendered his resignation as Chairman of the Bank's governing board.
He said, in part:
"The security affiliates are necessary if the American capital market is
to be adequately financed and effectively competitive. That the Federal
Government should regulate and supervise the security business within the
limits of its constitutional authority, and on the basis of sound economic
principles, may be taken as a starting point. It is easy for the Federal Government to do this under the Constitution lathe case of the security affiliates
of National banks and other members of the Federal Reserve System. The
Chase National Bank, since 1921, has invited and received examination by
the office of the Controller of the Currency for its security affiliate without
legal compulsion."
Federal Reserve Board's Review of Banking Conditions
-Increase in Year in Member Banks' Excess
Reserve-Funds Made Available by Open Market
Operations Found to Have Largely Returned to
New York-Idle Cash Deposited in City Institutions.
In its summary of banking conditions in its February
"Bulletin" the Federal Reserve Board refers to the continued gold imports, and states that "funds arising out of
the gold inflow and the return flow of currency were added
to the reserve balances of member banks, but were offset
to the extent of $88,000,000 by a reduction between Jan. 4
and Jan. 25 in Federal Reserve Bank holdings of United
States Government securities. This reduction,says theBoard,
was in accordance with the system's policy of maintaining
a substantial amount of excess member bank reserves and
Financial Chronicle
1652
from time to time, in the light of current conditions, making
adjustments in holdings in the open market account. The
Board adds that "excess reserves of member banks at the
end of January were approximately at the $500,000,000 level
reached at the close of last year. The Board indicates
that funds made available last year by the open market
operations of the Federal Reserve banks have in a large
measure returned to New York where they are held on
account by banks for their correspondents in the interior.
Noting this, the "United States Daily" of Feb. 23 added:
Funds which the open market operations made available are "not being
employed locally," the Board finds after tracing the movement ot funds
out of New York and back again in the form of interbank deposits. Deposits of correspondents in New York banks have increased by $772,000,000
in the last year, the Board shows.
Failure of the funds to be "employed locally" is illustrated in the total
loans and investments of all member banks on Dec. 30, which the Board
made public for the first time. Loans and investments, other than Government investments, of all member banks fell from 825,256,000,000 to
815,174,000,000 during last year, showing a contraction ot credit rather
than the employment of new funds.
The Board's summary as made available Feb. 23 was given
as follows in the "Daily":
Gold Stocks Increase.
Continued gold imports and a return flow of currency from circulation contributed to a further easing of conditions in the money market in the last
week of December and in January. Gold imports, chiefly from France,
Netherlands, and India, were reflected in an increase of the country's stock
of monetary gold amounting to 878,000,000 between Dec. 21 and Jan. 18.
During the following two weeks gold stock was reduced by 818.000.000.
largely as the result of the purchase by England of gold from the amount
held under earmark in London for account of the Federal Reserve Bank of
New York, offset in part by continued imports. This gold was acquired
In the middle of December in connection with Great Britain's war debt
payment of 895,550,000.
Currency Circulation.
Since then $63,387,000 of this amount has been shipped to the United
States and 832,163,000 has been repurchased by England,so that no further
gold is now held abroad by the Federal Reserve Banks.
Return flow of currency from circulation, which is usual after the Christmas holidays, has been in smaller volume this year than in other recent
sears. This decrease has reflected in part the fact that, owing to a reduced
volume of trade and lower prices, the outflow In December had been smaller,
and in part, particularly in the latter half of the month, an increase in currency withdrawals caused by banking disturbances in different parts of the
country. The decline in currency outside of the Treasury and the Federal
Reserve Banks was $109,000,000 from the Christmas peak to Feb. 1.
Funds from Gold Inflow.
Funds arising out of the gold inflow and the return flow of currency were
added to the reserve balances of member banks, but were offset to the extent
of 888.000,000 by a reduction between Jan. 4 and Jan. 25 in Federal Reserve
Bank holdings of United States Government securities. This reduction in
the system's portfolio was in accordance with the system's policy, announced
last month, of maintaining a substantial amount of excess member bank
reserves and from time to time, in the light of current conditions, making
adjustments in holdings in the open-market account. Excess reserves of
member banks at the end of January were approximately at the $500,000,000
level reached at the close of last year.
In view of the further declines of short-time money rates in the open
market, clearing-house banks in New York and in many other cities announced reductions in interest rates to be paid on deposits.
On Feb. 3 the provisions of sections 2 and 3 of the Glass-Steagall Act,
which would have expired by limitation on March 3 of this year, were extended for another year. This renewal was in accordance with a recommendation of the Federal Reserve Board, transmitted to Congress on Jan.9.
Section 2 of the act authorizes the Federal Reserve Banks, in exceptional
and exigent circumstances, to make advances to member banks having a
capital of not exceeding 85,000.000 against paper that would otherwise not
be eligible for discount, in case these banks lack an adequate supply of
eligible paper. In its letter to the Congressional Committees the Federal
Reserve Board said:
"While demands upon the Federal Reserve Banks for accommodations
under section 10b have not been large, the existence of the authority to
extend such accommodations has been a helpful factor in the disturbed
-situation through which we have been passing and has enabled the Federal
Reserve Banks to render service to individual member banks in a number of
Instances."
Section 3 of the Glass-Steagall Act authorized the Federal Reserve Board,
originally until March 3 1933. and now until March 3 1934, to permit the
use of United States Government securities as collateral for Federal reserve
notes. The enactment of this section of the act made possible the policy
of the Federal Reserve system to purchase United States Government
securities in amounts sufficient to enable the member banks to meet the
demands upon them for gold from abroad and for currency withdrawals,
and at the same time to reduce their indebtedness to the Reserve Bank
and to accumulate a considerable volume of excess reserves.
Factors in Change in Reserve Credit.
Changes in Reserve Bank credit and the principal factors in these changes
during the year from Feb. 3 1932 to Feb. 1 1933. are shown in the table.
There was little change for the year in demand for currency, while monetary
gold stock increased by 8142,000,000. The increase in the item "Treasury
currency adjusted" reflects chiefly increased issues of national bank notes
under the Glass-Borah amendment to the Federal home Loan Bank Act.
RESERVE BANK CREDIT AND PRINCIPAL FACTORS IN CHANGES.
Feb. 8 1932.
Feb. 1 1933.
Change.
$4,406,000,000 34,548,000,000
Monetary gold stock
+142
1,786,000,000 1,885,000,000
'Treasury currency adjusted
+99
5,631,000,000 5,652,000,000
Money In circulation
*4-21
1,937,000,000 2,438,000,000
Member bank reserve balances
+501
1,810,000,000 2,070.000,000
Total reserve bank credit
+260
855,000,000
Bills discounted
269,000,000
—588
156,000,000
31,000,000
Bills bought
—125
749.000,000 1,764,000.000 +1.015
United States securities
•Reflecting chiefly increased issues ot national bank notes.
Purchase of 81015.000,000 of United States Government securities by
the Reserve banks, together with the factors already mentioned, enabled
the member banks to reduce their borrowings at the Reserve banks by 8586,000,000, and at the same time to increase their reserve balances by 8501,-
March 11 1933
000,000, the whole of this increase being held as reserves in excess of legal
requirements.
The increase in reserve balances for the year has been entirety in banks in
financial centers and chiefly at banks in New York City. This does not.
however, indicate that the easing effects of open-market purchases by the
Reserve banks have been confined to the leading cities.
United States Government securities were purchased for the most part in
New York, as the principal market for these securities, and the funds
arising from the purchases were in the first instance added to the reserve
balances of New York banks. Later, however, these funds were distributed
through Treasury disbursements of all kinds, including advances by the
Reconstruction Finance Corporation to banks and other institutions
throughout the country. Funds acquired in this manner by the interior.
not being employed locally, subsequently found their way back to New
York and other financial centers through the redeposit of funds by outside
banks with their city correspondents.
The results of these movements are brought out in the table, which shows
that reserve balances of member banks in leading cities increased during
the year from Jan. 27 1932 to Jan. 25 1933, by 8599,000,000, of which
8346,000,000 was at banks in New York City and $253,000,000 at banks in
other leading cities.
During the same period amounts due by these banks to other banks,
that is, bankers' balances, increased by 81,213,000,000, of which about
two-thirds was at New York City banks.
Bankers' balances represent in part legal reserves of non-member banks,
In part necessary clearing balances, and in part operating reserves or surplus
funds of member banks. The concentration of excess legal reserves at
banks in New York City and in other financial centers does not indicate
that banks outside these centers have no reserves available for purposes
other than compliance with legal requirements. On the contrary, the
figures indicate that the outside banks have a large volume of idle funds
held on deposit with city banks whence they can be withdrawn on demand
when the occasion arises.
CHANGES IN IMPORTANT ITEMS OF MEMBER BANKS IN LEADING
CITIES BETWEEN JAN. 27 1932 AND JAN. 25 1933.
In New
York City.
I
Outside New
York City,
Total.
$
$
$
Borrowings from Federal Reserve
—15,000,000 —376,000,000 —391,000,000
banks
Reserves with Federal Reserve
+346,000,000 +253,000,000 +599,000000
banks
—967,000,000 —1,848,000,000 —2,815,000,000
Total loans
United States Government
+1,084,000,000 +358,000,000 +I,442,000,000
securities
+196.000,000 —196,000,000
Other securities
+313,000,
—1,686,000,000 —1,873,000,000
Total loans and investments
TIna tn hanky
+772.000.000 4-441 000 000 +1.213.000.000
The portfolio of banks in leading cities showed considerable change in
composition during the year. Loans decreased steadily throughout the
greater part of the year, while Investments began to Increase after the first
quarter of 1932. Up to July this increase in investments was not as large
as the decline in loans, but during the latter half of the year there was no
further decline in total loans and investments. The table shows that the
liquidation in loans of the reporting banks amounted to 82,815,000,000 for
the year; investments increased by 81,442,000,000, the increase being
entirely in United States Government securities.
Effect of.Interdistrict Operations Is Outlined.
There are several factors that tend to distribute throughout the country
funds arising from gold imports and from open-market operations of the
Reserve banks, which in the first instance are largely concentrated at New
York banks. New York is a large consuming market and buys from all
over the country. Subscriptions for securities floated for the purpose of
raising new capital are usually heavy in the New York market, and the
funds collected from investors in New York are disbursed throughout the
country in construction activity, in payment for materials, in shipping, and
through other channels.
Loans made by New York banks to national corporations with headquarters in New York are also likely to be reflected directly or indirectly
In a movement of funds out of New York. Treasury operations generally
tend in the same direction, and during the past year, when the other factors
have been smaller than usual, Treasury operations, including those in
connection with the activities of the Reconstruction Finance Corporation,
have been the principal factor in distributing throughout the country funds
raised in New York by the Treasury.
That a large part of the funds acquired in New York by the Treasury
became available to banks outside New York is indicated by a comparison
for 1931 and 1932 of the net disbursements by the Treasury outside the
New York Federal Reserve District. The comparison shows that in 1931
the net movement of funds to the interior on Treasury account amounted
altogether to about 8400,000,000, and that in the second quarter of 1931
this movement was especially large, reflecting large disbursements in the
interior arising out of loans on the bonus certificates and also out of certain
Farm Board operations.
In 1932 these net transfers amounted to about 8950,000,000, reflecting in
addition to ordinary expenditures of the Government the effects of emergency activities and particularly disbursements of the Reconstruction Finance
Corporation representing loans to interior banks and other institutions.
National City Bank of New York to Divorce Security
Affiliate.
The following statement was issued on March 7 at the
office of James H. Perkins, Chairman of the Board of Directors of The National City Bank of New York:
The boards of directors of The National City Bank of Nes York and of
The National City Co. have to-day determined on the policy of working
toward the divorcement of the Bank and its security affiliate. It will besought to accomplish this as soon as it can be done in an orderly manner
without sacrifice of the assets of the Company and of the value which exists
In its facilities for the purchase and distribution of investment securities of
the highest grade. In pursuance of this policy, from this time on, no executive officer of the Bank will sit upon the Board of the Company and no
executive officer of the Company will sit upon the Board of the Bank.
The Board of Directors of The National City Bank of
New York this week declared a dividend of 250. a share on the
capital stock of the Bank payable on Apr. 1 1933, to shareholders of record on March 11 1933. In connection with this
dividend declaration, the Board authorized the statement
that although the full quarter's dividend at the previous rate
of 50c. per share had been more than earned in the first two
Volume 136
Financial Chronicle
months of the current quarter, it was deemed advisable in
the interest of conservatism because of the general banking
situation throughout the country to make the present payment 25e. per share.
Reforms in Banking System Proposed by W. W.Aldrich
of Chase National Bank of New York—Would Put
All Commercial Institutions in Federal Reserve
,
Divorce Securities Units, Curb Private Houses
.
A reform program, designed to purge the commerc
ial
banking business of all taint of speculative leadersh
ip was
proposed on March 8 by Winthrop W. Aldrich, Chairm
an of
•the Governing Board of the Chase National Bank in
New
York, incident to an announcement that the Bank
had
-decided to divorce its security affiliate,. the Chase Securiti
es
Corp. The plan of Mr. Aldrich involves inclusion of
all
•oommercial banks in the Federal Reserve System,
said the
New York "Times" of March 9,from which we quote:
Calling for the complete separation of deposit
banking and investment
banking, even to the extent of forbiddin
g private bankers to take deposits
or to be directors of banks of deposit, the program strikes
directly at the
'position of J. P. Morgan & Co., the members
of which are directors of
of the largest commercial banks of the city and who hold important some
foreign
and domestic deposits.
In his statement Mr. Aldrich, who is a representative
of the John D.
Rockefeller interests, largest stockholders of the Chase, and who
succeeded
Albert H. Wiggin as executive head of the Chase organization
last January,
not only condemned the policies of his predecessor, but, in
effect, declared
bis opposition to some of Wall Street's most powerful figures
and their
particular interests.
Criticism Hits at Own Bank.
In so doing, Mr. Aldrich did not spare his own bank, for the
Chase
National organization, as it is at present constituted, violates almost
every
one of the principles he advocated. Coming at a moment when the
financial
community is shaken by the nation-wide bank closing,
the declaration is
calculated to strike down what little opposition remains
to a drastic reform
•of the entire banking system. It was looked upon last
night as convincing
proof of the readiness of Wall Street leaders to scrap
old ways and begin
anew. One phase alone, "I do not think, however, that
the Glass bill goes
sufficiently far," illustrates how far the change of
opinion among the bankTing leaders has gone. It contrasts with the
valedictor of Mr. Wiggin,
.delivered only on Jan. 10, which expressed the convictio y
n that abolition of
security affiliates would be "very III-advised."
In addition to declaring for a complete divorce
between the security
business and the business of commercial deposit
banking, Mr. Aldrich
asserted that no corporation or partnersh
ip should be permitted to take
deposits unless it is subjected to the
same regulations as commercial banks
and is required to publish a statement of its condition
. Such a ruling would
force the private banking houses of Morgan's,
Kuhn,Loeb & Co. and others
to disclose for the first time the extent of their
capital and resources.
The reforms suggested by Mr. Aldrich
would curb the power of the large
private investment banking firms in three
respects.
First, by depriving these Dims of the
right to accept deposits, they would
make it necessary fix the private banks to
obtain credit from the commercial
banks in financing their security flotations
.
Second, by doing away with
banks, the proposed regulations the security affiliates of the commercial
would
for the syndicating of their securities take from the private banks outlets
which have in the past been of great
Importance.
Third, by removing all private
bankers from their positions as directors
of the commercial banks, the changes
would greatly reduce the prestige,
influence and "inside information"
available to the partners of investment
houses at present.
Mr. Aldrich's statement as given in the "Times
" follows:
I heartily commend the action of the
National City Bank in taking steps
o divorce its security affiliate, the National
City Company. It is impossible
to consider the events which took place
during the past 10 years without
being forced to the conclusion that intimate
connection between commercial
banking and investment banking
almost inevitably leads to abuses.
For some time past the Chase National
Bank has been giving serious consideration to the question of severing
the connection between itself and its
security affiliate. The matter was
discussed at the last meeting of the
directors and a subcommittee has been
appointed by the executive committee to report as soon as possible upon ways
and means of bringing about
this result.
I am entirely in sympathy with the divorcing
by law of security affiliates
from conunercial banks. I do not think,
however, that the Glass bill goes
sufficiently far in separating the
business of commercial banking from that
of dealing in securities. To separate commercial
banks from their security
affiliates is only half the problem.
The following additional steps should
ultimately be taken:
1. No corporation or partnership should
be permitted to take deposits
unless such corporation or partnership is subjected
to the same regulations
and required to publish the same statement
s as are commercial banks.
2. No corporation or partnership dealing in securities should
be permitted
to take deposits even under regulation.
3. No officer or director nor any member of any
partnership dealing in
securities should be permitted to be an officer
or director of any commercial
bank or bank taking deposits, and no officer
or director of any commercial
bank or bank taking deposits should be permitted
to be an officer or director of any corporation, or a partner in any partnersh
ip, engaged in the
business of dealing in securities.
4. Boards of directors of commercial banks should be limited in
number
by statute so as to be sufficiently small to enable the members to be
actually
cognizant of the affairs of their banks and in a position
really to discharge
their responsibility to stockholders, depositors and the business
community.
The spirit of speculation should be eradicated from the
management
of commercial banks, and commercial banks should not be permitted
to
underwrite securities except securities of the United States
Government and
of States, territories, municipalities and certain other public bodies in
the
United States.
The Federal Reserve System was founded for the purpose of serving
the
governmental and commercial life of the country. I think
that all commercial banks should be members of the System and that their manageme
nt
should be actuated solely by the desire to carry out such purposes in a sound
and conservative manner. In my opinion, not until the reforms above
mentioned have been put into effect will this result be obtained.
To what extent Mr. Aldrich's program of banking reform represents a
change in view by the officers and directors of the Chase,and to what extent
1653
it reflects views which Mr. Aldrich and his group have held, but
which they
have not hitherto expressed, it is impossible to Judge. As one
prominent
banker, not connected with the Chase, remarked after hearing of
the statement,•
'Mr. Aldrich is a comparative new-comer to the banking field."
He
assumed the executive direction of the largest bank in the world less
than
two months ago, after a banking career of only three years. Prior to
taking
charge of the Rockefeller-controlled Equitable Trust Co. in December
1929,
he had been a lawyer, but since the merger of the Equitable with
the Chase
in June 1930. he has taken an increasingly important part in the affairs
of
the bank and in banking generally.
Comments on his plan by other bankers were cautious, as was to be expected in view of the fact that the reforms he suggested would involve
changes in the structure or personnel of the most important banks of the
city. Several of the points made by Mr. Aldrich would involve
changes in
the board of directors of the Chase National Bank itself. The Bank has at
present 78 directors, one of the largest directorates of any bank, and among
them are several members of private banking houses.
Among the partners of private banking houses which deal in securities
,
who are also directors of the Chase, are Frank Altschul of Lazard Freres;
Frederic W. Allen of Lee, Higginson eft Co.; _Classes* Di1lea-404011Isin.
Read & Co., and Charles Hayden of Hayden, Stone & Co.
Morgan Partners Affected.
Mr. Aldrich's program, if it were carried out,
would bring wholesale
realignments of the directorates of some of the most important banks
in the
country and would affect every private banking house.
Of the 20 partners
of J. P. Morgan & Co., 10 are directors of one or more commerci
al banks.
Among the important local banks of which Morgan
partners are directors
are the Guaranty Trust Co.. the Bankers Trust Co., the
Corn Exchange
Bank Trust Co., the New York Trust Co., and the
City Bank Farmers
Trust Co. In addition J. P. Morgan and Thomas W.Lamont
are directors
of the First Security Co., affiliate of the First National
Bank. In the case
of the Guaranty, the Bankers, the First National Bank and
the New York
Trust Co., the influence of the Morgan firm is popularly supposed
to be
dominant.
According to testimony given by John P. Frey, Secretary-Treasure
r of
the Metal Trades Division of the American Federation of Labor,
before a
subcommittee of the Senate Judiciary Committee in January, private
banks
dominate the large commercial banks of the country and these
in turn
dominate the smaller commercial banks and the industries
of the country.
Mr. Aldrich's proposal that all banks in the country should
be brought
into the Federal Reserve System found quick endorsem
ent among other
bankers. The opinion has been growing since the banking
crisis that a
unified national system of banking is imperative,
and most bankers think
that the first step should be universal bank membersh
ip in the Federal
Reserve.
The belief that the security business should be separated
from commercial
banking has been growing in force ever since the stock
market crash of 1929.
but the first definite move in that direction, taken by
Senator Carter Glass
in his bill introduced a year ago, aroused strong oppositio
n In Wall Street.
It has only been since the recent disclosures
of the practices of the National City Co. during the boom years, before the Senate
Committee investigating stock market practices, aroused widesprea
d popular feeling that the
Wall Street community has gone over
in largo numbers to the side of the
reformers.
The National City testimony was followed by the resignatio
n of Charles
E. Mitchell, Chairman of the Bank and its affiliates,
and of Hugh B. Baker.
President of the National City Co. On Tuesday
night James H. Perkins,
newly elected Chairman of the Board of the National City, announce
d that
the Bank had decided to divorce its affiliate.
Although the plans of the Senate investigating Committee
have not
formally been disclosed, it has been reported that the affairs
of the Chase
National Bank's security affiliate and of the affiliates
of other important
banks were to have been gone into shortly with a thoroughn
ess equal to
that displayed in the National City Co. investigation.
President Brown of New York State Chamber of Commerce Expresses View That New York Banks Are
Sound.
At a meeting of the New York State Chamber of Commerce on March 2, James Brown, President of the Chamber
made a brief statement on the banking situation. He said:
Before proceeding with the regular business of this meeting
I have
been urged to say a few words about the present
financial situation.
After careful consideration, I have decided to do so.
I am not speaking for the Executive Committee, and what
I say is
personal, but nevertheless is said with full realization of my
responsibility
as your President.
We all know the bank troubles in Detroit and other Miahigan
cities.
There are rumors of similar troubles in other localities,
some of which
may be true. These troubles are largely brought about
by depositors
who have lost their heads, and who are demanding currency that
they
do not need.
It is my considered opinion that the great institutions In New
York
are sound, and were never before in such a liquid condition.
If we
go about our business in the usual way there will be no troubles here.
Business is dull. The business man's banking needs are small. Let
the members of this Chamber act with courage and confidence
, and so
help to instill confidence in others.
The remarks of Mr. Brown, who is senior member of
the international banking house of Brown Brothers, Harriman & Co., were applauded by the members of the Chamber.
Two-Year Moratorium on Mortgage ForeclosUres in
Oklahoma.
A two-year moratorium on Oklahoma mortgage foreclosures became law on March 7 when Governor W. H.
Murray signed the bill, according to Associated Press advices from Oklahoma City, March 7.
United States Senate Authorizes Inquiry Into Banking
and Finances.
The Senate passed a resolution (S.373), March 3,authorizing its Committee on Banking and Currency as follows,
according to the "United States Daily":
1654
Financial Chronicle
March 11 1933
J. R. Howard "Dirt Farmer" Before New York State
Chamber of Commerce Warns Against Adoption by
Congress of Unwise Methods of Farm Relief.
Warning that the adoption of an unwise method of farm
relief by Congress could completely demoralize agriculture in
this country, James R. Howard, Iowa "dirt farmer," on
Governor Olson of Minnesota Issues Proclamation March 2 criticized the Farm Allotment bill in an address
Forbidding Foreclosures,
before the Chamber of Commerce of the State of New York.
On Feb. 24 Governor Olson of Minnesota issued a prods, In introducing the speaker, James Brown, President of the
mation halting mortgage foreclosures in Minnesota until chamber, said that as a former President of the American
May 1 or until further order was made to "preserve law and Farm Bureau Federation Mr. Howard was in a position to
order." Governor Olson defended his right under the con- speak authoritatively on the farmers' attitude toward relief
stitution to issue the proclamation,said the St. Paul "Pioneer legislation. Mr. Howard declared that the measure would
Press" of Feb. 25, from which the following is also taken:
require huge costs of administration, would result in greater
The order, issued earlier in the day,instructs every sheriff or other police
governmental participation in business, and would be, in
mortgages on any extept
officer in the State to refrain from foreclosing
effect, legislative price-fixing on a huge scale. "Congress
industrial properties.
would do better to do nothing in the way of farm relief than
Copies were sent out Friday night to sheriffs.
The Governor's office received a number of calls from sheriffs after the
o adopt such a plan," Mr. Howard said.
what action they
the press, asking
"To sit during the sessions, recesses and adjourned periods of the 73d
Congress at such time and places as it may deem advisable, to make investigations into all matters within its jurisdiction, and to compile and prepare
statistics and documents relating thereto as directed from time to time
by the Senate and as may be necessary, and to report in due course to the
Senate the result thereof."
order had been made public through
should take in foreclosure proceedings where sales are now pending.
They were instructed by Vince A. Day, Secretary to Governor Olson, to
postpone any pending foreclosure sales coming within the broad limitations
of the order.
"It is my duty as Governor to preserve law and order in the State,"
Governor Olson said. "The duty is imposed by the State Constitution,
and carries with it the Implied power to perform it.
Avoiding Militia Call.
"The expressed power under the Constitution would be to call out the
militia to preserve law and order, and the alternative would be to remove
the causes of such disturbance.
"I am doing that which I could do under martial law without declaring
martial law, to halt impending riots and insurrection."
In issuing the order Governor Olson also sent a message to the Legislature
asking that adequate legislation be passed "to prevent injustice" in such
foreclosures by altering the procedure now prescribed by law.
He said he is attempting to create a "debt commission" for the State with
subordinate committees in each county which would be made up of three
members representing the debtors, creditors and a neutral party.
Some Foreclosures Right.
Governor Olson also informed the Legislature that in his belief a law
halting all mortgage foreclosures for a length of time, even though constitutional. "would be unwise because some foreclosures are reasonable."
The Legislature, Governor Olson suggested in his message, could empower the courts of the State, sitting as courts of equity in proceedings for
foreclosure of mortgages by action, to pass on the reasonableness and
justice of the foreclosures.
Mortgage Bill Becomes Law Without
Governor's Signature.
Under date of Feb. 26 Associated Press advices from
Little Rock, Ark., said:
Arkansas
preventing deficiency judgp Governor Futrell yesterday permitted a bill law without his signature.
foreclosures to become a
ments in mortgage
It had been on his desk five days.
The Act, the constitutionality of which has been questioned by some
attorneys, would fix the value of the property to be foreclosed at the amount
of the mortgage.
Foreclosure Powers of Courts Construed—Methods to
Protect Property Owners Cited in Wisconsin
The "United States Daily" of Feb. 28 reported the following from Madison, Wis., Feb. 27:
PI A court of equity has a common law power to refuse confirmation of a
value of the
mortgaged propforeclosure sale which brings less than the
erty, under present economic conditions, the Supreme Court ruled in a
it approved denial of a deficiency judgment in a foreclosure
case in which
proceeding.
The court laid down three methods for protecting property owners
threatened with foreclosure, namely:
1. It may decline to confirm the sale where the bid is substantially
Inadequate when the fact of inadequate price is coupled with an emergency
which operates to prevent competitive bidding.
2. The court, in ordering a sale or resale, may, in its discretion, take
notice of the present emergency, and, after a proper hearing,fix a minimum
price at which the premises must be bid in if the sale is to be confirmed.
of a sale, if it
3. The court may, upon application for the confirmation
has not theretofore fixed an upset price, conduct a hearing, establish the
to confirmation, require that the
value of the property, and, as a condition
fair value of the property be credited upon the foreclosure judgment. If
an upset price has been established, the plaintiff may be required to credit
this amount upon the judgment as a condition to confirmation.
The decision was handed down in the case of Suring State Bank vs.
Giese et al.
Moratorium on Real Estate Mortgage
Foreclosures in Nebraska.
•
date of March 2 Associated Press accounts from
Under
Lincoln, Neb., had the following to say:
Two-Year
A two-year moratorium on real estate mortgage foreclosures was established in Nebraska Thursday by an emergency enactment.
The bill was passed by the Senate under suspension of its rules after
being changed somewhat by the House, and then received Governor O. W.
Bryan's signature, which made it law immediately.
By its terms, foreclosure actions may proceed past the point of decree,
but there can be halted on application to the court until March 1 1935.
The court will determine possession of the property meantime and order
payment of rent.
As the Governor drew the bill originally, it would have stopped foreclosures in whatever stage they might have been. This proposal aroused
opposition in the Senate, but after its elimination in the House, the Senate
accepted the
Present Financial Events Like Those of 1907—Wall
Street Recalls Preliminaries to Former Issues of
Clearing House Notes—Put Out in 1873, 1884 and
1893—Alexander D. Noyes's History of Finance
Tells How Hoarding of Cash Had Ill Effect in
Old Days.
In the New York "Times" of March 5 it was noted that
Wall Street veterans saw in conditions on March 4 the elements of the situation that caused banks In 1907 in New
York and other cities to supplement currency in circulation
by the issuance of "clearing house loan certificates." This
informal but valid form of currency found wide use in 1907,
when, it was estimated, as much as $238,000,000 was in
circulation, said the "Times," which further commented as
follows:
Issuance of these certificates has been an expedient in times of financial
stringency since 1873. They were put out also in 1884 and in 1893.
Parallels between recent happenings and those which preceded the
issuance of the certificates in 1907 were seen in such events as the Insull
and Kreuger collapses, the declaring of bank holidays in interior sections
of the country, and in the resignation of Charles E. Mitchell from the
Chairmanship of the National City Bank. Similar developments culminated
in the decision by the New York banks on Saturday, Oct. 28 1907, to use
the emergency currency.
A clearing house is primarily an institution through which the banks
in a city balance their accounts daily with one another, but in emergencies
it has often proved a ready means of salvation. The situation in 1907 was
one of currency shortage, preceded by notable runs on banks, trust companies and savings banks, with resultant invocation by the last-named
institutions of the 60-day notice rule."
Clearing House Certificates.
The simplest explanation of the nature of a clearing house loan certificate is that it is paper based on bank deposits and issued, not by one
bank, but by a group of banks. Because it represents deposits, it may
be used for the normal purposes of money without, however, depleting
the deposits of money in banks for the reason that it is not "cashed."
In 1907 payroll requirements were met by the issuance of these certificates
in denominations as small as $1, although generally they were for larger
amounts.
The banking situation became acute in 1907 largely through the practice followed at that time by trust companies in New York of accepting
demand deposits without the provision of ordinary banking safeguards
as to reserves. Led by the Knickerbocker Trust Co., three other trust
companies and six banks, with deposits aggregating $57,000,000, closed
their doors in the fall of 1907.
Unlike the present situation, a stock market panic ensued at a critical
moment, with the demand rate for Stock Exchange loans running up to
125%. This situation was ameliorated by the release of $25,000,000
through the intervention of J. P. Morgan and the exchange authorities,
but the bank crisis was only beginning.
Noyes Recalls 'Old Issues.
Discussing the subsequent use of clearing house certificates, A. D. Noyes,
financial editor of the New York "Times," writes as follows in his "Forty
Years of American Finance":
The Intent of this expedient,never adopted since the panic of 1893, WM to help out
hard-pressed banks through loan of the cash resources of their neighbors; but Its
result, in 1907 as in 1893, was to bring about general suspension of cash payments
in the clearing house. Before the panic of 1907 was over the New York banks had
888,420,000 of such loan certificates In use, as against a maximum of 838,208,000
in the panic of 1893. and the loan certificates remained In use during 22 weeks, as
against only 19 weeks' duration in the earlier panic.
Two days after New York had set the example, practically every clearing house in
resulted In
the country took similar action—a wholly unprecedented event, which certificates,
the issue, throughout the whole United States, of 8238,000,000 of such
as against 869,000,000 in 1893. Notwithstanding this recourse, reserves of the New
York banks, which had stood at a surplus of 511,182,00010 the week before the pante
fell to a deficit of 854,103,000 on Nov. 3, very much the largest shortage of the
kind in our banking history, the maximum deficit of 1803 having been 810,648,000.
This formidable shrinkage was occasioned by an actual loss of 351,000,000 cash
in the five intervening weeks, and the position thus created brought suddenly into
view two other phenomena of 1893. Hoarding of cash by individuals set in: in was
estimated in high quarters that, In the country as a whole, no less a sum than $296.000,000 actually disappeared from sight.
Results of Hoarding of Cash.
This hoarding partly caused, and was partly caused by, the policy of banks in
limiting the amount of cash which they would pay out to depositors, one Immediate
result of such restriction being the issue of emergency currency by the banks of
cities like Pittsburgh and Chicago, where manufacturers' payrolls created urgent
need for great sums of currency. The amount of such makeshift money has been
estimated at upward of $96,000,000.
The next result of the bank rest,lotion was a premium on currency, paid in checks
months, as
on such institutions, which rose to 4%. and which continued for two so In 1907,
against only one month's duration in the panic of 1893. As in 1893,
a stampede to draw on Europe's gold supply.
this premium caused
Mr. Noyes relates that $90,000,000 in gold came from Europe to America
in two months, London alone losing $73,400,000, and that, with the
Volume 136
Financial Chronicle
arrival of the first few large consignments, "the acute stage of the
panic ended."
Wichita, Kan., Live Stock Exchange Opens on Plea of
Secretary of Agriculture Wallace.
Members of the Wichita Live Stock Exchange decided
on March 6 to keep the market open for business until further
notice. Associated Press accounts from Wichita, March 6,
in noting this added:
A message from Secretary Wallace of the Department of Agriculture,
received while the Exchange members were meeting, asked that the market
be kept open until ordered otherwise by the Federal Department.
Kansas City Live Stock Exchange to Close.
Directors of the Kansas City Live Stock Exchange decided
on March 8 to close the exchange Friday, March 10, giving
inability to obtain transfers of balances from Chicago banks
as the cause, Assocated 'Press advices from Kansas City
March 8 stated, adding:
The decision was announced by E. W.Elliott, President of the Exchange.
Efforts will be made to reopen Saturday, March 11.
The directors said that since last Saturday (March 4) about $1.000,000
in checks, all for deferred clearance, have been issued and accepted here.
The need for a transfer of balances from Chicago banks is occasioned
by the fact that the bulk of the purchases is made by Chicago packers.
Kansas
City Board of Trade
Opens to
Permit
Cash
Sales.
Associated Press advices from Kansas City, March 9 said:
The cash wheat market of the Kansas City Board of Trade will be opened
immediately. Directors of the Grain Exchange announced to-day that this
was decided on as an aid to millers, who are continuing to operate their
plants despite the closing down of grain exchanges incident to the bank
holiday. The futures market will remain closed. With resumption of the
cash market, it was specified that transactions should not involve any
wheat now under hedge.
Chicago Board of Trade to Close Cash Grain Markets.
Unable to operate its cash grain department properly
without the protection of futures trading, Chicago Board
of Trade directors voted on March 6, states advices (Associated Press), from Chicago to close the cash grain markets
here after the session on March 7. The advices continued:
The suspension was ordered by the directors because traders found themselves unable to hedge their purchases properly with the future pits silent
and empty. Trading will be as usual March 7, but cash grain will cease
March 8 and will be resumed when the futures market reopens.
Chicago Live Stock Exchange Votes to Close—Reported
as Rescinding Action Later.
Special advices from Chicago, March 6, to the New York
"Times" said that at a special meeting held that day,
the
directors of the Chicago Live Stock Exchange decided to
close the market at 3 p. m. March 7 and to keep it closed
until further notice. The action was taken after a joint
meeting of officials of the Exchange, commission men and
packers the advices said. Inability to evolve a plan for
payment of live stock under the emergency was given as the
reason. The advices also noted:
Leading packers, however, will continue to buy in the
country for direct
shipment, paying in company checks redeemable when
banking facilities
permit. In recent weeks about 50% of the hogs received
here have been
going direct to packers.
This action was later rescinded by the Excjiange as reported
in the "Wall Street Journal" of March 7, according to
Chicago advices:
As the result of developments which have arisen and which
would indicate resumption of facilities for speeding movement of
food products,
including hogs, cattle and sheep, the Chicago Live
Stock Exchange has
rescinded its action of March 6 in closing, and will remain
open until further
notice under substantially the same conditions governing
sales that have
been in effect since President Roosevelt's proclamation.
Cut in Commission Rates on National Livestock Market
at Chicago.
Finding that existing rates are "unreasonable," R.
W.
Dunlap, Acting Secretary of Agriculture, on March 1
ordered
a out in commission rates on the National Livestock Market
at Chicago, according to Chicago advices March 1 to the
New York "Journal of Commerce," which added:
Decreased tariffs ordered are estimated by the Department
to be such
as would have effected a savings of $165,000 to producers, had they
been in
effect in 1931. The new rates are the result of an Investigation
instituted
by the Department last March.
The rates now charged by Exchange members for selling straight
carloads
of cattle are reduced from a minimum of $15 and a maximum of $18 to a
minimum of $12 and a maximum of $15 per car. The new rates for
a single
deck of hogs are a minimum of $9 and a maximum of $11, compared with
a minimum of $12 and a maximum of $13 in the existing tariffs. The
rates on single deck cars of sheep are reduced from a minimum of $9 and a
maximum of $13 to a minimum of $9 and a maximum of $11. and those
on
a double deck car from a minimum of $13 and a maximum of $20 to a minimum of $11 and a maximum of $15 per car.
1655
President Hoover Signs Bill Transferring to United
States Supreme Court Authority to Prescribe
Rules to Be Followed by Lower Courts in Criminal
Cases After Verdicts.
Declaring it would close legal loopholes through which
convicted criminals have escaped speedier punishment,
President Hoover signed on Feb. 25 a bill to prescribe new
regulations for the conduct of the lower Federal courts after
verdicts of guilty have been rendered. Associated Press
advices from Washington Feb. 25 noted that in a brief statement issued from the White House the President said he
signed the measure with "great satisfaction." Specifically,
it transfers to the Supreme Court authority to draw rules
for the practices of the lower Federal courts, a step which
he said had been recommended by himself and AttorneyGeneral Mitchell for the last four years. The President's
statement follows:
I have signed with great satisfaction the bill, S. 4020, to transfer to the
Supreme Court of the United States the authority to prescribe rules
of
practice and procedure to be followed by the lower Federal courts in
criminal
cases after verdict.
It represents the recommendations of myself and the Attorney
-General
over the past four years. It realizes, in part, a quarter of a century
of
demands for reform in Federal criminal procedure.
It should prevent well endowed criminals, who have been
convicted by
juries, from delaying punishment by years of resort to sharp
technicalities
of judicial procedure. It will increase the respect for law.
Attorney-General Mitchell's letter to President Hoover
follows:
OFFICE OF THE ATTORNEY
-GENERAL.
Washington, D. C.. Feb. 24 1933.
The President, The White House.
Mg Dear Mr. President:—I have the honor herewith to return enrolled
bill S. 4020, to give the Supreme Court of the United States authority
to
prescribe rules of practice and procedure with respect to
proceedings In
criminal cases after verdict.
This is the most important measure directed at the reform of
criminal
procedure in the Federal courts that has been enacted for many
years.
The necessity for such legislation has more than once been brought
to the
attention of the Congress in your messages and repeatedly urged
in my
reports to the Congress.
The bill was drafted by me and introduced at my request, and it is
a matter of congratulation that the Congress has found the time, with
all its
other burdens, to pick this bill out of the vast number pending
and enact
it into law.
The subject of criminal procedure in the Federal courts naturally
divides
itself into two parts, the. proceedings before and during the trials
in the
lower courts and the proceedings after verdicts of guilty.
The delays that have occurred in important criminal cases in the
Federal
courts because of appeals by the convicted persons, and the long
periods
that are allowed to elapse between the dates of the verdicts of guilty
and
the final affirmance of the judgments in the United States Circuit
Courts
of Appeals, have been a reproach to the administration of justice.
Convicted persons supplied with ample funds and resourceful
lawyers
have been able to delay final judgment and the commencement
of their
sentences from one to four years after juries have returned verdicts
of guilty.
There have been innumerable instances of this kind. It has not
increased
the popular respect for justice to have convicted persons at large
on ball
for years after juries have found them guilty.
While a convicted person should have the right to have his conviction
reviewed by an appellate court, he has no right to interminable delay.
These delays have been due to a combination of causes, to delays
in procuring transcripts of the record, in preparing bills of exception, in making
motions for new trial, in perfecting appeals, and in bringing the appeals
on for argument.
Fundamentally, the cause has been the inadequacy of the rules
of the
United States Districts Courts and Circuit Courts of Appeals which
lend
themselves to such delays and to indulgencies, and extensions of time
granted by the courts. Prosecuting attorneys have not
been free from
blame because of failure to expedite such
proceedings.
This bill, which allows the Supreme Court of the,United States to
regulate
all these proceedings, opens the way to throwing overboard
the entire
system of proceedings in Federal criminal cases after verdicts
of guilty and
to substitute new rules which will compel speedy disposition
of those cases.
The action which the Supreme Court of the United Stttes
has long since
taken compelling prompt disposition of criminal cases in that
court leaves
no doubt as to the effectiveness of the measures it will
take under this Act.
One class of cases in which these abuses have been greatest is that
including Prosecutions for use of the mails to defraud. We have had many instances where thousands of persons have been defrauded out of their
savings
and robbed of vast sums by unscrupulous operators in worthless
securities
and where the malefactors, finally convicted by juries in
Federal courts
of using the mails to defraud, have gone at large on
ball for years before
their cases were finally disposed of in the Intermediate
courts of appeals.
The matter of reform in criminal procedure in the
Federal courts in those
proceedings prior to verdict is a subject by itself which
involves many
difficulties and which this measure does not attempt to deal
with, but we
have here the means of putting an end to
practices after verdicts of guilty
which have tended to make people
lose confidence in the amlnistration
of criminal law. I recommend that it
receive your approval.
Second Session of Seventy-Second Congress Ends in
Solemn Dignity—Watch Given to Speaker Garner
—Last "Lame-Duck" Session.
The last "lame-duck" session of Congress passed into
history on March 4 and said a dispatch on that date from
Washington to the New York "Times", the end of a long line
of practically impotent legislative assemblages came to
an
end with the death of the Seventy-Second Congress,
whose
second and final session piled up such a record for inaction
and delay as to cause national leaders to rejoice at its
passing.
The account continued in part:
Financial Chronicle
1656
Henceforth, by constitutional decree of the American people, the new
Congresses will convene in regular sessions on Jan. 3 of each year following
the November elections. The second sessions will meet on the same date of
the next year. By the same decree, future Presidents will be Inaugurated
on Jan. 20.
The change of the Constitution to prevent hereafter the recurrence of a
-duck" session was one of the few permanent measures initiated by
"lame
the Congress which passed out to-day. It adopted little else which now is
considered likely to mark its place in history. It spent most of its troubled
days in trying to stop the tide of business depression, then went out in the
most turbulent days of all.
The Seventy-second Congress drew its last breath at noon. It fell into
a coma late last night, made one final gasp about mid-morning, then expired
without benefit of clergy.
No Last-Minute Legislation.
What remained of the old legislative body was literally rolled out of the
Capitol to make ready for the new order. The hope of some of the leaders
as late as this morning was that some momentous measure would be shoved
through it the last minute,leaving something for the country to remember
it by.
But those hopes were not realized. The Senate reconvened at 10.30
a. m. and recessed 13 minutes later to prepare for the ceremonies that were
to mark the advent of the new regime.
The House assembled at 9 a. m., attended to remaining routine business
and listened to the last of the swan-songs of the "lame-duck" members,
then went over in a body to the Senate to witness its own demise.
The last desperate effort of the old Congress at least to settle its routine
affairs before giving up to the ghost was blocked by Mr. Hoover, the re-vetoed the independent offices appropriation
tiring President. He pocket
bill, carrying more than $1,000,000,000 for various agencies of the Government because, he said, it included an increase above his recommendations
which he could not countenance.
Explains Veto of Bill,
This veto was Mr. Hoover's last official act. In a statement given out at
the White House just before he left for the Capitol, he said:
"The appropriation bills passed by the Congress, when taking into
account, were postponements to later deficiency bills, show that the total
appropriations for the next fiscal year were approximately $161,000,000
above the President's recommendations Of this increase. $130,900,000
Is in the independent offices bill. The President is not signing the bill, in
order that It may be reviewed in the next session."
The same treatment was given to the Smith cotton-pooling bill. The
veto of this measure, however, was expected.
Even discounting the veto of the independent offices bill, the dying
Congress was unable to clean up the remainder of its affairs. The District
of Columbia supply bill, providing $36.900,000 for the Government of the
capital, remained to-night right where the House left it the night before—
unapproved on the table.
An accumulation of unfinished tasks was shoved aside as the old Congress
passed out the door. All efforts at bank reform, balancing the budget,
farm relief, silver restoration, railroad consolidation and readjustment of
industry on shorter working days and working hours were abandoned at the
last minute when it became apparent that the "lame-duck" session would
do well to even pass the legislation necessary to the day-to-day operation of
the Government.
Last "Lame Ducks" Number 130.
But aside from the legislation that was left untouched, the expiration of
this "lame-duck" session carried an element which was much more personal
to the 531 men who composed it. More than 160 of them will not return to
the new Congress and of these nearly 130 will henceforth be known as the
last "lame ducks."
This number failed of re-election at the polls in November.
The passing of these members brought a human touch to the otherwise
austere ceremony that ushered in the new Administration. House members
had started their paring words two or three days before. They sufficed
with the customary swan-songs and simple good-byes to personal friends
within the body.
For the Senate, however, it was the breaking up of an old club. The
retirement of the 10 Republicans did not appear so much of a victory to the
Democratic leaders to-day as it did on the morning after election last fall.
In the group of 10 Republicans and one Democrat who were forced out
were the dean of the whole body, Senator Smoot of Utah; the congenial
handshaker whom they were wont to call "Sunny Jim" Watson: Smith W.
Brookhart, who could stand the joking about his prohibition views, and
Hiram Bingham of Connecticut, who kept up that joking. There was the
keen-tongued George H. Moses, whose departure brought a bit of sadness
even to those 11 "insurgents" whom he termed the "sons of the wild
jackass."
In the group, too, was John J. Blaine of Wisconsin, who was a bit more
unforgiving than some about the appellation given by Senator MOSeB:
Thomas of Idaho, Glenn of Illinois, Oddie of Nevada, Broussard of Louisiana, who were affectionately known in the club as John, Otis, Taaker and
Ed,to say nothing of"Sam" Shortriclge of California, who often regaled the
"boys" in the check rooms with his story of"Why did you leave St. Louis?"
Mr. Watson "Recalled" to Illinois.
Friendly contacts of nearly 40 years' duration were broken with the
demise of the final "lame-duck" session. A notable example was that of
"Jim" Watson and Claude Swanson of Virginia, whose paths have crossed
and recrossed since 1894.
Mr. Swanson left the Senate to join the Cabinet of President Roosevelt
as Secretary of the Navy. "Sunny Jim" Watson went back home, by what
he said was "the almost unanimous consent of the people of Indiana."
Another Senator, Hull of Tennessee, went out to head the new Cabinet.
He was a comparatively new member of the club, however, and, too, was
considered more of the mysterious scholar who should be left to bide his
time.
The House members were lees clubby. Changes in that body had been
often and large and intimate acquaintance and associations were not so
prevalent.
Notwithstanding, the outgoing of"lame ducks" from the House included
such persons as Ruth Bryan Owen of Florida, Ruth Pratt of New York,
Firoello La Guardia of New York, Gilbert Haugen of Iowa. Ed Hull of
Illinois, Will Collier of Mississippi, Willis Hawley of Oregon and Schafer of
Wisconsin.
The House, too, gave up a member for Mr. Roosevelt's Cabinet, In
Lewis William Douglas of Arizona as Director of the Budget.
Reconstruction Finance Corporation Called Major Action.
IF The greatest single accomplishment to which members of the dying
Congress pointed to their swan-songs was the creation of the Reconstruction
Finance Corporation.
March 11 1933
That agency was the backbone of the gigantic machine which the Seventysecond Congress set up at its first session to pump more than $5,000,000.000'
new credit into the veins of business.
The measure which many of the leaders held of scarcely less importance,
but of which little mention was made at the last, was the broad grant of
authority voted to President Roosevelt to reorganize the Federal establishment. This Act has been, interpreted as, in effect, a surrender of certain
prerogatives by the Congress in an effort to effect needed governmental
economies. . . .
House Convenes at 9 A. M.
The House convened for its last session at 9 A. M. with most of the.
members in their places, while newcomers in the House sat respectfully
in back seats.
As the hour of adjournment approached. Mr. Bulwinkle of North Carolina surprised Mr. Garner by presenting him, in the name of all the Democrats, with a watch. Mr. Garner was taken completely off guard. There*
was a catch In his voice.
"There are occasions," he said, "when words cannot express the soul
of man and I find myself in that condition."
For a moment or two Mr. Garner stood silent before the House. He
turned to the Republican and then to the Democratic side.
"I leave this body without a single feeling other than a Christian OD&
for every member of it," he said. "I said. weeks ago I regretted leaving.
and / was sincere when I said it.
"However. I do want to say that it is my deliberate judgment there
have been as able men in this Congress as there have been in the history
of the Republic, and I speak after a service of 30 years."
As he finished Mr. Garner handed the gavel to Representative Willis
-Hawley tariff law, who was.
C. Hawley of Oregon, co-author of the Smoot
among those whose service ended to-day.
Snell Moves Thanks to Garner.
Mr. Hawley recognized Mr. Snell, who, after eulogizing the retiring
Speaker as a fair and impartial presiding officer, proposed a resolution.
thanking him for being such. It was unanimously adopted.
When Mr. Snell finished Mr. Garner took the chair for the last time.
In a few words he thanked Mr. Snell for what he had said and the Republicans generally for having been so fair and courteous to him during the
period of his Speakership.
That was the end. Mr. Garner banged the desk with his gavel. The
House of the Seventy-second Congress had gone into history.
The Senate had recessed some time earlier after a strictly perfunctory
meeting. Action was limited to approval of the conference report on the
second deficiency appropriation bill.
The chamber was then cleared and the seats rearranged for the ceremony
which was to mark the ending of the old, the beginning of the new.
Many Measures Fail of Passage as Congressional
Session Ends—Glass Bank Plan and Hull-Walcott
Bill to Aid Farm Mortgage Situation Not Approved
by Congress—Wagner Relief Plan to Be Reintroduced—Proposals to Permit Moratoria on City
Debts and to Enlarge Federal Fund for Relief of
States Not Passed—Silver Bills Fail—Outstanding
Legislation.
Many measures relating to banking, relief, unemployment,
city indebtedness, legalization of beer, silver and farm relief,,
which had reached preliminary stages of legislation, failed
of final action in the Seventy-Second Congress. said the
"United States Daily"of March 6,from which we also quote:.
The Glass banking bill (S. 4412) passed by the Senate Jan. 25 by a
54 to 9 vote, for a safer and more effective use of assets of Federal Reserve.
banks and of National banking associations and providing for an extension
of the privileges of branch banking in States where State laws permit
such practice, was lost in the House Committee on Banking and Currency, which never considered it.
Mortgage plan Dies.
The Hull-Walcott bill (S. 5639), a temporary and emergency measure
designed to alleviate suffering caused by foreclosure of mortgages on
farm lands and on small homes, passed the Senate March 1, but never.
got further after being sent to the House.
Various other bills on the calendar relating to banking also failed of'
action, including the Hancock bill (H. R. 14618) to enable borrowers under
the Federal Farm Loan Act to secure release of their mortgages by the
transfer of land bonds to land bank registrars.
Unemployment Relief,
The Wagner bill (S. 5609) for the relief of unemployment and distress,
on which the House Committee on Banking and Currency failed to act
after its passage by the Senate, will be reintroduced in the 73d Congress.
Senator Robert F. Wagner (Dem.) of New York, sponsor of the bill,
stated orally March 3 that he believes President Roosevelt will favor
an enlarged program for the next session of Congress.
The bill which failed of passage enlarged the relief fund of the Recon struction Finance Corporation by $300,000,000 to permit continuation of
loans to States, municipalities, and other political subdivisions for relief'
of distress. It embodied provisions similar to those of the Reconstruction
Finance Act of 1932 except that it eliminated the self-liquidating prerequisite of the former. In addition to the $300,000,000 provision, and
additional $15,000,000 direct grant to States for the relief of unemployed
was provided.
Bids on Public Buildings.
The Goss bill (H. R. 9921) will be reintroduced in the 73d Congress.
Representative Edward W. Goss (Rep.) of Waterbury, Conn., sponsor
of the bill, stated orally March 3. This bill proposes that contracts in
excess of $5,000 for the alteration, repair, or construction of any public
building within the United States be awarded only to bidders whose bids
are accompanied by a statement containing the names and addresses of
the subcontractors, material men and supply men whose services the bidder
intends to utilize in the performance of the work
Provisions Outlined.
A proposal to authorize moratoriums on indebtedness of cities, to range
from two to ten years according to the need, was left without action on the.
floor of either House after being rushed through the Judiciary Committees
of both Houses within 24 hours after the time the matter was laid before
them.
The House Committee declared in its report that the choice presented
is "between bondholders on the one hand and maintenance of Government.
Volume 136
Financial Chronicle
on the other," and that immediate action was imperative, but the
measure
never was brought up in either House,
In both the Senate and the House Committees there were substantia
l
minorities that voted against a favorable report on the
proposal.
At brief hearings on the bills witnesses had told the committees
that the
Nation's cities could no longer bear the burden of interest payments
and
regular operating expenses, and unless relief were granted from
the interest
burden such essential services as police, fire and school systems
would
be crippled.
Gasoline Tax Measure.
The Collier bill (H. R. 14416), out of the House Committe
e on Ways
and Means, to extend the present tax on gasoline for another
year, passed
the House on Jan. 30, was reported out of the Senate Finance
Committee,
amended, on Feb. 6, but failed of final action. This
proposal, according
to members of the committee, will.be reneweed in the new Congress.
Two beer bills failed of action. One was the Collier bill
to legalize and
tax beer generally, which passed the House and was
reported out of committee to the Senate but which never reached action
in the Senate. The
other was to follow up the Collier bill in respect to
the District of Columbia,
being reported out of the House Committee and put on
the House calendar
for regulation of beer. The bill never reached action
by the House.
Silver Bills Not Passed.
Proposals in both the Senate and the House relating
to silver failed of
action. This includes the Somers bill (H. R. 14756) authorizin
g the Secretary of the Treasury to accept deposits ofsilver not in excess of8250,000,
000
and to issue silver certificates against this bullion. Its chief purpose was
stated to be to restore the export trade of the United States with silver-using
countries. The report of the House Committee on Coinage, Weights and
Measures on the Somers bill is printed in this issue.
The agricultural domestic allotment bill (H. R. 13991), which was passed
Jan. 12 by the House, perished on the Senate calendar after having been
reported from committee with amendments. This bill proposed to levy
a
tax on processors of various farm products, the proceeds of which were
to be distributed to the producers as an addition to the prices for the
products. The bill as passed by the House restricted production and
applied to about seven commodities. When reported out from committee
In the Senate the bill did not restrict production and covered only two
farm commodities, wheat and cotton.
Colon Plan Disapproved.
Tim Smith cotton board pooling bill (S. 5122). providing for the creation
of a new board to take over approximately 3,000,000 bales of cotton from
the present agencies under the Department of Agriculture and from the
Federal Farm Board, was not approved by President Hoover. The bill
would have the cotton board enter into contracts with cotton producers
who agree to reduce the production of cotton in 1933 by not less than 30%
below their production of 1932.
Plan for Reorganization.
The proposal of President Hoover for reorganization of certain branches
of the executive and administrative side of the Government was disapproved by the House, making it void. Late in the session, however,
Congress voted to the new President extensive powers to reorganize
the
Government, not subject to veto by a majority vote of either
House as had
been the case with Mr. Hoover. Reorganization orders of the new
President, under the extended powers, will be valid unless they are overridden
by a two-thirds vote of both Houses of Congress.
1657
that you will again give that support to leadership in these
critical days."
The President declared that "our greatest primary task
is to put people to work. This is no unsolvable problem,"
he added,"if we face it wisely and courageously." "Finally,
in our progress toward a resumption of work," he said,"we
require two safeguards against a return of the evils of the
old order; there must be a strict supervision of all banking
and credits and investments; there must be an end to speculation with other people's money, and there must be provision for an adequate but sound currency."
The President in his address likewise said "we must
frankly recognize the overbalance of population in our industrial centres and, by engaging on a national scale in a.
redistribution, endeavor to provide a better use of the land
for those best fitted for the land." He went on to say:
The task can be helped by definite efforts to raise
the values of agricultural products and with this the power to purchase the output
of our
cities. It can be helped by preventing realistically
the tragedy of the
growing loss, through foreclosure, of our small
homes and our farms. It
can be helped by insistence that the Federal, State
and the local governments act forthwith on the demand that their cost be
drastically reduced.
It can be helped by the unifying of relief activities
which to-day are often
scattered, uneconomical and unequal. It can
be helped by national
planning for and supervision of all forms of transporta
tion and of communications and other utilities which have a definitely
public character.
President Roosevelt indicated that he will "spare no
effort to restore world- trade by economic readjustment,
but," he pointed out, "the emergency at home cannot wait
on that accomplishment." The President further said:
In the field of world policy 1 would dedicate this Nation
to the policy of
the good neighbor—the neighbor who resolutely respects
himself and
because he does so, respects the rights of others—the neighbor
who respects
his obligations and respects the sancity
of his agreements in and with a
world of neighbors.
From his address we also quote:
We face the arduous days that lie
before us in the warm courage of
national unity; with the clear consciousness
of seeking old and precious
moral values; with the clean satisfactio
n that cornea from the stern performance of duty by old and young alike.
We aim at the assurance of a rounded
and permanent national life.
Regarding the assumption of the Presidency by Mr.
Roosevelt, the "United States Daily" said:
Franklin Delano Roosevelt. of New York, became
the 32d President of
the United States, March 4. in ceremony
that included the ending of the
last "lame duck" session under an amended Constituti
on.
Succeeding Herbert Hoover, of California,
Mr. Roosevelt took the oath
of office as Chief Executive of the Nation
at 1:06 p.m.. repeating the oath
of office as quoted by Charles Evans Hughes,
Chief Justice of the United
States. The inauguration took place on
the east steps of the Capitol where
the new President immediately delivered
his first pronouncement of policy,
pledging that he would direct his efforts
to restoration of stability and
against a recurrence of disturbing times.
Outstanding Legislalion.
Outstanding legislation of the last session of Congress includes
the adoption of the proposed repeal of the 18th (prohibition) amendmen
t, now
being submitted to the States, of which 36 out of the 48
must ratify in
order to make repeal effective; granting of Philippine independe
nce at the
end of approximately 12 years of preparation for home
rule: extension of
the Glass-Steagall Act for another year and emergency legislation
to augment the powers of the Comptroller of the Currnecy
in respect to withdrawals of deposits in national banks; vesting of broad
powers to the new
President for reorganization of the Federal
bureaus and agencies; and
revision of the bankruptcy laws with respect to railroads
and individuals.
Vice-President Inaugurated.
Prior to his induction into office, Mr. Roosevelt
witnessed in the Senate
chamber the end of the 72d Congress, the retirement
of Vice-President
Charles Curtis and the inauguration of John Nance
Garner. of Texas. as
Vice-President.
Following the Capitol ceremony, Mr. Roosevelt reviewed
the Inaugural
parade from stands at the Executive Mansion.
Franklin
From the Washington account to the New York "Times"
March 4 we quote in part as follows:
D.
Roosevelt Inducted
Into Office as
President of United States—Inaugural
Address—
Declares There Must Be Strict Supervi
sion of
Banking Credits and Investments and
Provision
for Adequate but Sound Currency—Primary
Task
Is to Put People to Work.
In one of the most critical periods in the history of the
Nation, Franklin D. Roosevelt assumed office on March 4
as the thirty-second President of the United States. President Roosevelt entered upon his duties as Chief Executive
of the Nation at a time when bank holidays were being
declared in practically all the States of the Union, and the
situation prompted the issuance by him on March 5 of a
proclamation declaring a nation-wide four-day bank holiday.
A day or two later there was a modification of the restrictions against bank operations, and these, together with the
bank holiday proclamation, and the proclamation (issued
March 5) calling an extra session of Congress on March 9,
are all referred to in separate items in this issue of our paper.
In his inaugural address President Roosevelt took cognizance
of the extraordinary conditions prevailing and declared that
there is no need for us to "shrink from honestly facing conditions in our country to-day. This great nation will encure
as it has endured, will revive and will prosper." "First of
all," said President Roosevelt, "let me assert my firm belief
that the only thing we have to fear is fear itself—nameless,
unreasoning, unjustified terror which paralyzes needed efforts to convert restreat into advance. In every dark hour
of our national life a leadership of frankness and vigor has
met with that understanding and support of the people
themselves which is essential to victory. I am convinced
A deep consciousness of the task before him
was patent in his unusual
demeanor as, his face stern, his voice grave,
he repeated after Chief Justice
Hughes the historic words of the oath.
This realization animated also the
inaugural address which Mr. Roosevelt then delivered
in the presence of
at least a hundred thousand persons who
gathered in the Capitol grounds.
The sense of the Administration's burden
was apparent, too, in the
manner and speech of Vice-President
Garner. who, an hour before the
President took the oath, laid down his gavel as
Speaker of the House of
Representatives and was inducted into his new
office in the Senate chamber,
where he will henceforth preside.
Keeps Pledge of Action.
"Action" was the promise of Mr. Roosevelt's speech,
and action was
immediately forthcoming The first moment after
the
over, the President swore in his Cabinet, summoned ceremonies werethe party leaders.
to a Sunday conference to work out
the plan for banking relief and arranged
to call an extra session of the Seventy-th
ird Congress, probably on Wednesday, to legislate the plan into law.
"This Nation asks for action, and action
now," he said on the steps ofthe Capitol. Within a few hours
he acted.
The President had consistently maintaine
d his attitude that he would
not accept responsibility
without power in the period between his election
and his inauguration. Powerful
and subtle suasions could not move him.
But when authority came he moved
at once as he had said he would.
Atmosphere Is Grim.
Though the city was gay with
flags and lively with the music of bands
and cheers for the marchers
in the inaugural parade which followed the
oath taking, the atmosphere
which surrounded the change of government
in the United States was
comparable to that which might be found in a
beleaguered capital in war time.
The President in his address
told the people that they were at war with
the forces of depression and
offered them leadership and action in the new
campaign to be raged against
these forces.
In words that burned and
scourged he denounced the financial leaders.
of the Nation, declared that these
"money changers"should be driven from
the temple and that they should
not be allowed to return to their high
places. No more, he declared, should those
entrusted with other people's
money be permitted to misuse it. .
. .
A Historic Inauguration.
In many respects to-day was historic.
For several reasons March 4 1933
will have its paragraph in history. Not
only for the grievous economic
1658
Financial Chronicle
or for the supcondition in which the change of government was effected,
last March 4
planting of one political theory by its antithesis. This is the
will take the oath
which will be an inaugural day; henceforth Presidents
on Jan. 20.
by coincidence,
Never again on March 4 will a Congress end, except
as that which
and never again will there be a "lame-duck" session, such
things have been changed
came to its constitutional finish to-day. All these
by the Norris amendment.
other reasons
The ending of this "lame-duck" session was unusual for
tried to be gay and
than because it was the last of the series. The House
it could do and quit
Juvenile, as always, but it was no go. It had little
In the Senate
more than half an hour before the Constitution prescribes.
do, Congress, for
the situation was about the same. With everything to
every one and
political reasons, was able to do nothing. That depressed
made them glad to pass the session into history.
Roosevelt to induct him into the
The oath prescribed for Franklin D.
office of President of the United States reads:
the office
"I do solemnly swear (or affirm) that I will faithfully execute
my ability, preof President of the United States, and will, to the best of States."
n of the United
serve, protect and defend the Constitutio
President Roosevelt's inaugural address follows in full:
President Hoover, Mr. Chief Justice, my friends:
fellow
This is a day of national consecration, and I am certain that my
Americans expect that on my induction into the Presidency I will address
situation of our
them with a candor and a decision which the present
the
nation impels. This is pre-eminently the time to speak the truth,
whole truth, frankly and boldly. Nor need we shrink from honestly facing
it
conditions in our country to-day. This great Nation will endure as
has endured, will revive and will prosper. So, first of all, let me assert
fear is fear itself—nameless,
my firm belief that the only thing we have to
convert
unreasoning, unjustified terror which paralyzes needed efforts to
retreat into advance. In every dark hour of our national life a leadership
of the
of frankness and vigor has met with that understanding and support
that you
people themselves which is essential to victory. I am convinced
will again give that support to leadership in these critical days.
difficulties.
In such a spirit on my part and on yours we face our common
shrunken
They concern, thank God, only material things. Values have
pay has fallen; governto fantastic levels; taxes have risen; our ability to
serious curtailment of income; the means of
ment of all kinds is faced by
of industrial
exchange are frozen in the currents of trade; the withered leaves
enterprise lie on every side; farmers find no markets for their produce;
are gone.
the savings of many years in thousands of families
More important, a host of unemployed citizens face the grim problem of
Only a
existence, and an equally great number toil with little return.
foolish optimist can deny the dark realities of the moment.
Cruises Practices of "Unscrupulous Money Changers."
Yet our distress comes from no failure of substance. We are stricken by
no plague of locusts. Compared with the perils which our forefathers
still much
conquered because they believed and were not afraid, we have
have
to be thankful for. Nature still offers her bounty and human efforts
a generous use of it languishes
multiplied it. Plenty is at our doorstep, but
of the
in the very sight of the supply. Primarily, this is because the rulers
ss
exchange of mankind's goods have failed, through their own stubbornne
and their own incompetence, have admitted their failure, and abdicated.
indicted in the court
Practices of the unscrupulous money changers stand
of public opinion, rejected by the hearts and minds of men.
True they have tried, but their efforts have been cast in the pattern of
only
an outworn tradition. Faced by failure of credit, they have proposed
to
the lending of more money. Stripped of the lure of profit by which
their false leadership, they have resorted to
Induce our people to follow
only
exhortations, pleading tearfully for restored confidence. They know
the rules of a generation of self-seekers. They have no vision, and when
there is no vision the people perish.
The money changers have fled from their high seats in the temple of
truths.
our civilization. We may now restore that temple to the ancient
The measure of the restoration lies in the extent to which we apply social
values more noble than mere monetary profit.
Happiness lies not in the mere possession of money: it Iles in the joy of
achievement, in the thrill of creative effort. The joy and moral stimulation of work no longer must be forgotten in the mad chase of evanescent
us
profits. These dark days will be worth all they cost us if they teach
that our true destiny is not to be ministered unto but to minister to ourselves and to our fellow men.
Recognition of the falsity of material wealth as the standard of success
goes hand in hand with the abandonment of the false belief that public
office and high political position are to be valued only by the standards
of pride of place and personal profit; and there must be an end to a conduct
in banking and in business which too often has given to a sacred trust the
likeness of callous and selfish wrongdoing. Small wonder that confidence
languishes, for it thrives only on honesty, on honor, on the sacredness of
obligations, on faithful protection, on unselfish performance; without them
It cannot live.
Restoration calls, however, not for changes in ethics alone.
This Nation asks for action, and action now.
Primary Task to Put Men to Work.
Our greatest primary task is to put people to work. This is no unsolvable
ed in
problem if we face it wisely and courageously. It can be accomplish we
treating the task as
part by direct recruiting by the Government itself,
would treat the emergency of a war, but at the same time, through this
employment, accomplishing greatly needed projects to stimulate and reorganize the use of our natural resources.
Hand in hand with this, we must frankly recognize the overbalance of
population in our industrial centres and, by engaging on a national scale
in a redistribution, endeavor to provide a better use of the land for those
best fitted for the land. The task can be helped by definite efforts to raise
the
the values of agricultural products and with this the power to purchase
output of our cities. It can be helped by preventing realistically the tragedy
our farms.
of the growing loss through foreclosure of our small homes and
governments
It can be helped by insistence that the Federal, State, and local
It can
act forthwith on the demand that their cost be drastically reduced.
scattered.
be helped by the unifying of relief activities which to-day are often
for and
planning
uneconomical, and unequal. It can be helped by national
tions and other
supervision of all forms of transportation and of communica
character. There are many ways in
utilities which have a definitely public
about it.
which it can be helped, but it can never be helped merely by talking
We must act and act quickly.
Strict Supervision of Banking Essential.
we require two
Finally, in our progress toward a resumption of work
there must be a
safeguards against a return of the evils of the old order;
s; there must be
strict supervision of all banking and credits and investment
March 11 1933
be provision
an end to speculation with other people's money,and there must
for an adequate but sound currency.
presently urge upon a new Congress
These are the lines of attack. I shall
seek the
In special session detailed measures for their fulfillment, and I shall
immediate assistance of the several States.
putting our own
Through this program of action we address ourselves to
Our international house in order and making income balance outgo.
and
national trade relations, though vastly important, are in point of time
economy.
necessity secondary to the establishment of a sound national
spare no
I favor as a practical policy the putting of first things first. I shall
nt, but
effort to restore world trade by international economic readjustme
the emergency at home cannot wait on that accomplishment.
The basic thought that guides these specific means of national recovery
on,
is not narrowly nationalistic. It is the insistence, as a first considerati
of the
upon the inter-dependence of the various elements in and parts
United States—a recognition of the old and permanently important manifestation of the American spirit of the pioneer. It is the way to recovery.
It is the Immediate way. It is the strongest assurance that the recovery will
endure.
World Policy.
In the field of world policy I would dedicate this Nation to the policy of
and,
the good neighbor—the neighbor who resolutely respects himself
respects
because he does so, respects the rights of others—the neighbor who
a
his obligations and respects the sanctity of his agreements in and with
world of neighbors.
have
If I read the temper of our people correctly, we now realize as we
we cannot
never realized before our interdependence on each other; that
forward, we must
merely take but we must give as well; that if we are to go
of a commove as a trained and loyal army willing to sacrifice for the good
without such discipline no progress is made, no
mon discipline, because
and willing to submit
leadership becomes effective. We are, I know, ready
it makes possible a leaderour lives and property to such discipline, because
to offer, pledging that the
ship which alms at a larger good. This I propose
with a unity of
larger purposes will bind upon us all as a sacred obligation
duty hitherto evoked only in time of armed strife.
leadership of this
With this pledge taken, I assume unhesitatingly the
attack upon our common
great army of our people dedicated to a disciplined
problems.
under the form of governAction in this image and to this end is feasible
Our Constitution is so
ment which we have inherited from our ancestors.
ary needs
simple and practical that it is possible always to meet extraordin form.
loss of essential
by changes in emphasis and arrangement without
the most superbly
That is why our constitutional system has proved itself
produced. It has met
enduring political mechanism the modern world has
of bitter internal
every stress of vast expansion of territory, of foreign wars,
strife, of world relations.
and legislative
It is to be hoped that the normal balance of executive
task before
authority may be wholly adequate to meet the unprecedented
undelayed
us. But it may be that an unprecedented demand and need for
normal balance of
action may call for temporary departure from that
public procedure.
I am prepared under my constitutional duty to recommend the measures
These
that a stricken nation in the midst of a stricken world may require.
of Its
measures, or such other measures as the Congress may build out
within my constitutional authority,
experience and wisdom, I shall seek,
to bring to speedy adoption.
two
But in the event that the Congress shall fail to take one of these
critical, I
courses, and in the event that the national emergency is still
will then confront me. I
shall not evade the clear course of duty that
the crisis—
shall ask the Congress for the one remaining instrument to meet
, as great as
broad executive power to wage a war against the emergency
by a foreign
the power that would be given to me if we were in fact invaded
foe.
devotion
For the trust reposed in me I will return the courage and the
that befit the time. I can do no less.
of naWe face the arduous days that lie before us in the warm courage
precious moral
tional unity; with the clear consciousness of seeking old and
stern performance
values; with the clean satisfaction that comes from the
of a rounded
of duty by old and young alike. We aim at the assurance
and permanent national life.
The people of
We do not distrust the future of essential democracy.
they have registered a
the United States have not failed. In their need
They have asked for
mandate that they want direct, vigorous action.
have made me the present
discipline and direction under leadership. They
it.
Instrument of their wishes. In the spirit of the gift I take
of God. May
In this dedication of a nation we humbly ask the blessing
of us. May He guide me in the days to come
He protect each and every one
Masse.
President Roosevelt's Cabinet Sworn In En
y as sudden as it was unprecedented, PresiIn a ceremon
of the
dent Roosevelt sat at a desk in the spacious library in of
House on March 4 and witnessed the swearing
White
commissions
all ten members of his Cabinet, signed their
Washington
told them it was "a family party." A
and
to the New York "Herald Tribune" from
dispatch March 4
which we quote, added:
in
of placing the President
The procedure was resorted to as a means
who will direct his departments
position to consult officially with those
the program to be presented to the
and facilitate immediate action on
is expected momentarily.
extra session of Congress, the call for which
Benjamin Cardozo, of New York,
The oaths were administered by
Mrs. Roosevelt and son. James
Associate Justice of the Supreme Court.
Cabinet members, each in the
Roosevelt, sat at the President's left as the
Hull, Secretary of State, and ending
order of rank, beginning with Cordell
Labor, pledged themselves to their
with Frances Perkins, Secretary of
future duties.
Wives Witness Ceremony.
of the Cabinet members looked
To complete the family picture, the wives
commission, he said:
on. When the President had signed the last
Senate confirmed all
"This is strictly a family party. I am glad the
inaugurating here
without question. This is new custom which we are
to-day."
the last band
With his party, the President left the reviewing stand as
those on the Cabinet
of the inaugural parade passed the White House, and
were called from the
list, not in the reviewing stand with the President,
tea then in progress within.
the time-honored redThe President's words appeared to indicate that
member, each with a
tape of administering the oath of office to a Cabinet method making for
a
ceremony in his own department, had been cut for
l group.
dispatch in the assembling of the new Presidentia
Volume 136
Financial Chronicle
Those in the New Cabinet.
The Cabinet, in the order in which its members took the oath to-day,
nine men and one woman of varying political complexions, follows:
Secretary of State.—Cordell Hull, sixty-one years old. Democrat, former
member of the House of Representatives, and Chairman of the Democratic
National Committee in 1924.
Secretary of the Treasury.—William H. Woodin, of New York,sometimes
referred to as a Republican, sixty-four years old. Manufacturer and
business executive, who has written plays and music,including the "Franklin
Delano Roosevelt March" played to-day in the inaugural parade.
Secretary of War:—George H. Dern, Democrat, sixty years old, who
served two terms as Governor of Utah, and has held other elective offices
conferred upon him by his Party.
Attorney-General.
---Homer S. Cummings, of Connecticut, Democrat,
who made the keynote speech in the National Democratic convention in
1920 nominating Franklin D: Roosevelt for the Vice-Presidency. He is
sixty-two years old and has been Chairman of the Democratic National
Committee.
Postmaster-General.—James A. Farley, of New York, Democrat, fortytwo years old, best known as manager of President Roosevelt's pre-convention and election campaign and as Chairman of the Democratic National
Committee and member of the New York Boxing Commission.
Secretary of the Navy.—Claude A. Swanson, seventy, former Democratic
Senator from Virginia.
Secretary of Interior.—Harold L. Ickes, fifty-eight, a Chicago lawyer,
associated with the Bull Moose movement initiated by Theodore Roosevelt.
Secretary of Agriculture.—Henry A. Wallace. of Iowa. farm paper editor
and son of the late Henry Wallace, who served in the same post in the
Cabinet of President Harding.
Secretary of Commerce.—Daniel G. Roper, Democrat. South Carolina,
sixty-five, who was Commissioner of Internal Revenue in the Wilson
Administration.
Secretary of Labor.—Frances Perkins, forty-nine, former New York
Commissioner of Labor. Her married name is Mrs. Paul Wilson.
IN Attorney-General Homer S. Cummings was named as the result of the
death of Thomas J. Walsh, of Montana. He is expected to hold the
portfolio only for a brief period. Originally he had been selected as
Governor-General of the Philippines. He will go to Manila later.
Samson, dills, tfilchell Remain.
Three members of the Hoover Cabinet, Henry L. Stimson, Ogden L.
Mills and William D. Mitchell. who accompanied their chief to the Capitol
to-day to participate in the transfer of Administration, will remain in
Washington for the immediate future to be of assistance to President
Roosevelt and his advisers.
Henry T. Rainey Elected Speaker of House—Carries
Place by 166 to 112 While Byrns Wins Majority
Leadership, 161-140,
Representative Henry T. Rainey of Illinois, for the
past two years majority floor leader of the House,was
picked as Speaker for the 73d Congress by the Democratic
House members in secret caucus at night on March 2.
From the Washington advices on that date to the New
York "Journal of Commerce" we quote:
He will take over the reins held by Speaker Garner, who moves over
to the Senate side of the Capitol Saturday as Vice-President of the United
States and President of the Senate. Mr. Rainey will assume the duties
of presiding officer of the House immediately upon the convening of the
new Congress in extra session.
Wins Close Race.
Promotion of the majority leader to the highest post in the House,
followed one of the closest contested races for speakership within the
Democratic ranks since the 52d Congress, when Representative Crisp
of Georgia was nominated in 1891.
Four outstanding figures in the House, who have been members for
years, were running for the post. They were, besides Mr. Rainey, Representatives Byrns of Tennessee, Chairman of the Appropriations Committee; McDuffle of Alabama, Chairman of the Economy Committee
last session, and Rankin of Mississippi, who became prominent last session
in the fight for payment of the soldiers' bonus.
While each of the contestants claimed sufficient support to win the
nomination easily, the real outcome of the race remained in doubt until
this morning, when Representative Byrns decided to withdraw and throw
his support to Mr. Rainey.
Only one ballot was needed to decide the issue. It showed a majority
for Mr. Rainey of 54 over Mr. McDuffle, his nearest opponenent, the
vote being 166 to 112. Representative Rankin polled 20 votes, while
Representative Jones of Texas, Chairman of the Agricultural Committee,
and Bankhead of Alabama, unexpected candidates, received two votes and
one vote, respectively.
Byrns Majority Leader.
Immediately following the Speakership ballot, a vote was taken on a
successor to Mr. Rainey's post of majority leader, and the position was
turned over to Mr. Byrne by a vote of 151 to 140, received by Mr. Bankhead. Mr. Rankin received one vote for the post.
Another bitter fight was waged in the caucus for Clerk of the House,
but South Trimble, who hails from Tennessee, was re-elected over Representative Nelson of Missouri, a "lame duck" member. The vote was
158 to 118.
-Arms, the doorNo opposition developed against the Sergeant-at
keeper of the House or the Postmaster, and Kenneth Romney, Joseph J.
Sinnott and Finis E. Scott were each re-elected.
The makeup of the new House. with Representative Rainey as Speaker,
will show a Democratic majority of 191, with the total Democratic membership amounting to 313, Republicans 117, and Farmer Laborities 5.
Plan Steering Committee.
Anticipating a big job on their hands in handling the tremendous majority.
already in the making for appointment of a steering committee
plans are
to guide the path of legislation that is to come before the House.
Such a step has never been made by the Democrats before, they having
always relied on the judgment of the Speaker and the majority leader.
The Republicans, on the other hand, have always used a steering committee in its legislative movements and found such a committee most
helpful when it had a big majority to handle during the Longworth regime.
The first step in setting up such a group was taken in the caucus to-night
with the adoption of a resolution appointing five members of the Democratic Party to study the practicability of appointing such a committee.
A report is to be made back to the membership at its next caucus, the
1659
date of which was not announced, but probably before the next session,
when one would have to be called to organize House committees.
Democratic Margin in Congress Is 217—Party Has
Majority of 22 in the Senate and 195 in House.
Indicating that the 73d Congress, which would convene
in special session on March 9, would have a Democratic
majority of 22 in the Senate and 195 in the House, a dispatch March 8 from Washington to the New York "Times"
added:
This will be the greatest Democratic majority, according to available
records, since the 34th Congress in 1855.
At that time the Senate membership was 62 and the House had but
234 members. There are now 96 Senators and 435 Representatives,
including the Speaker of the House.
The first session of the 72d Congress that met in December 1931. was
composed as follows:
Senate: Republicans, 49; Democrats, 47; Farm-Labor, 1.
House: Democrats, 220; Republicans, 214; Farm-Labor. 1.
The second session of the 72 Congress, just ended, the last of the lame.
duck sessions, and which met Dec. 5. had the following representation:
Senate: Republicans, 48; Democrats, 47; Farm-Labor, 1.
House: Democrats, 219; Republicans, 207: Farm-Labor, 1; vacancies.8.
The 73d Congress, meeting to-morrow, will have the following line-up:
Senate: Democrats, 58; Republicans, 36: Farm-Labor, 1.
House: Democrats, 312; Republicans, 117; Farm-Labor, 5.
In addition to the vacancy casued by the death of the late Senator
Walsh of Montana, Representative Lewis Douglas of Arizona. recently
appointed Director of the Budget, will submit his resignation to the House
when it convenes. Democrats will succeed in each case.
Speaker Garmer's vacancy, in the 15th Texas District, is to be filled
in a run-off election.
Franklin D. Roosevelt,in First Presidential Radio Talk,
Urges Veterans to Sacrifice Now as in War.
Participating in the American Legion National radio
broadcast from Washington, March 5, President Franklin
D. Roosevelt, speaking from his library in the White House,
in his first radio talk as Chief Executive, urged all American
Legion men and all others to make the same sacrifice in the
present emergency as in war time. Telegraphic advices from
Washington, March 5, to the New York "Times" reported
President Roosevelt as saying:
I am glad that this, the first word addressed by me to the people of this
country from the White House. can be dedicated to the great ideals of
sacrifice and service. The men of the Legion and indeed all veterans, and
all good citizens know that the essential things of life are related intimately
to those two great words.
The men of the ranks of the Legion, in the trying days of fifteen years
ago, offered for the welfare and preservation of our country the ultimate
contribution that a human can give.
The deep necessities of peace are no less serious. It is a mistake to
assume that the virtues of war differ essentially from the virtues of peace.
All life Is a battle against the forces of nature, against the mistakes and
human limitations of man, against the forces of selfishness and inertia, of
laziness and fear.
These are enemies with whom we never conclude an armistice.
To the end that the efforts I am giving in these first days of my administration may be crowned with success and that we may achieve a lasting
restoration of National well-being, I invite the support of the men of the
Legion and of all men and women who love their country, who know the
meaning of sacrifice and who, in every emergency, have given splendid
and generous service to the Nation.
Mayor Anton J. Cermak of Chicago Dies of
Assassin's Attack.
After hovering between life and death since he was wounded
on Feb. 15 by Giuseppi Zangara in the latter's attempt to
assassinate President Franklin D. Roosevelt (at the time
of the attack President-elect), Mayor Anton J. Cermak of
Chicago died at 6.57 a.m. March 6, at Jackson Memorial
Hospital in Miami, Fla. Upon hearing of the death of
Mayor Cermak, President Roosevelt issued the following
statement:
It is needless to say that the news of the death of Mayor Cermak affects
me very deeply and very personally. Aside from the tragic chain of events
of which his death is the result, a very warm friendship and a very high
respect for Mayor Cermak's ability, friendship and loyalty to his friends
would have made his loss a heavy one to me under any circumstances.
The brave fight he made shows clearly the wonderful courage of the
man. The country at large and the great City of Chicago in particular
will miss a strong and resolute character.
A statement issued from the White House said "the President deeply regrets his inability to leave Washington at this
time." President Roosevelt designated Lieut.-Col. Campbell
B. Hodges, who is the senior military aide at the White
House, to represent him at the funeral of Mayor Cermak.
In part, we quote from Associated Press advices from Miami,
March 6, as follows:
Mayor Cermak had previously rallied after three crises in his condition.
Colitis, threatened heart failure and pneumonia beset him in quick succession just as his physicians had begun to believe he would recover from the
bullet wound.
Physicians still were optimistic March 4, but that night gangrene appeared
in the right lung, the one grazed by Zangara's bullet, and he grew steadily
weaker. A third blood transfusion was performed March 5 in an attempt
to save his life and an attempt to check the gangrene was made, but the
Mayor did not respond. He lapsed into a coma late March 5 and shortly
after midnight physicians said death was a matter of hours.
The Mayor died without recovering from his coma.
1660
Financial Chronicle
Mayor Cermak was born on May 9 1873 in Kladno, a
mining village in Czechoslovakia, then a part of Bohemia.
The following year he came to America with his parents.
He was elected Mayor of Chicago in 1931 and his term was
to expire in April 1935.
A reference was made in our issue of Feb. 18, page 1141,
to the attempt on the life of President Roosevelt and the
wounding of Mayor Cermak.
Giuseppe Zangara Sentenced to Chair Due to Death
of Mayor Anton J. Cermak of Chicago.
Giuseppe Zangara, who, in his attempt to assassinate the
then President-Elect Franklin D. Roosevelt, shot six persons, including Mayor Anton J. Cermak who died March 6
(as noted elsewhere in these columns) was sentenced to the
electric chair on March 10 at Miami, Fla., for the death of
Mayor Cermak. Zangara denounced the court when
sentenced and shouted that he was not afraid. Associated
Press advices from Miami, March 10, said:
"You're one of capitalists," Zangara shouted at Circuit Judge
Illy 0.
Thompson, after sentence had been passed. "I'm no afraid
that chair.
You is crook man. Put me in electric chair."
Zangara's time of death was not set In the Court's sentence. In
Florida.
the Governor sets a week in which the execution must be made.
The State
Prison Superintendent decides the day and hour.
Under Florida law the Governor may 11381113 the death warrant at any
time after receiving the record of the case from the clerk of the court
here.
An appeal to the State Supreme Court would stay the execution even after
the Governor had signed the death warrant.
Lewis W. Twyman, one of the attorneys appointed by the court to
defend Zangara, said that so far as he knew there would be no further
move in the case.
The little Italian immigrant, who was a bricklayer in Hackensack, N. J.,
before his desire to "kill all Presidents and Kings" led him to turn assasin,
placed the burden of decision on the jurist March 9 by a straight-out
plea
of guilty to murder.
Before Mayor Cennak's death, Zangara had been sentenced to serve 80 years in prison, a reference to the same
having appeared in our issue of March 4, page 1476.
President Roosevelt, Addressing Conference of Governors at Washington, Tells of Objectives in Bank
Holiday Proclamation—Would Have States Cooperate to Make Uniform Emergency Banking
Plans—Proposes Central Unemployment Relief
Agency—Suggests that There Be National Policy
a in Dealing with Mortgage Foreclosures.
At the conference of Governors held in Washington on
March 6, in response to his invitation of a month ago,
President Franklin D. Roosevelt referred to his bank holiday
proclamation of the previous day, as to which he said there
were four or five main objectives. The first, he said, was
to prevent the withdrawal of any further gold or currency;
"the second," he said, "was to provide some form of circulating medium in addition to the outstanding currency,
because a large parth ad been put into hiding." The President pointed out that "it is proposed, through the Treasury
Department, that every bank shall be authorized to open
new accounts, and that the money so deposited in the new
accounts can be withdrawn at any time." He added:
The only way in which that money can be kept absolutely safe beyond
peradventure of doubt is by using methods to keep it safe—first keeping
the money in cash, the way it is put in; second, depositing it in the Federal
Reserve Bank, and third, purchasing Government bonds with it.
"We want, in general," continued President, Roosevelt
"to have a general banking situation, that is to say, covering
National banks and State banks, as uniform as possible
throughout the country and at the same time we want to
co-operate with all of the States in bringing about that uniformity." The President referred to the matters outlined
for discussion in his invitation (this was given in our issue of
Feb. 11, page 948); as to taxation, he said in his address
that "it has been natural and human to expect that the Federal Government should try to find some method of raising
revenue." He likewise alluded to the question of Federal
aid in unemployment relief and said "it is my thought that
I can create some kind of central relief agency which will be
a fact-finding body which will co-ordinate the work of States
and act as a clearing house for the relief of the Nation.
I hope to get that set up in the next two or three weeks."
As to the question of "the reorganizing and consolidation
of local government to reduce the taxation cost," he noted
that "that is your problem and it has been my problem for
the last four years." The matter of mortgage foreclosures,
especially on farm land and on small homes, was likewise
referred to by President Roosevelt, who pointed out that
some States are handling the situation one way and some
another; "as yet," he said, "we have no National policy
for it, but I believe we can have one."
March 11 1933
In a Washington dispatch March 6 to the New York
"Times" it was stated that:
National scrip was discussed, and the President told the Governors
that he hoped it would be possible to keep such scrip on an equal value with
Government bonds. It was evident that through the whole conference
there ran the fundamental problem of sound currency of some sort, predicated upon a balanced budget.
President Roosevelt's address at the conference, as made
public at the White House, follows:
I have been so occupied since noon on Saturday that I have not had
any chance to prepare any formal remarks. I start off by saying to the
Governors and their representatives that as a Governor myself for the past
four years I am somewhat on intimate terms with the duties of Governors
and also with the rights and duties of States. The country needs co-operation between the States and the Federal Government; I think this has been
well demonstrated by the events of the past 48 hours.
The States acted with remarkable promptitude in preventing a panic at
a time when it might well have developed. The situation, however, did
get to the point yesterday where some kind of uniform action seemed necessary and, as you know, resulted in two things—the calling of a special
session of Congress for Thursday and, secondly, a proclamation to take
care of immediate emergency between now and Thursday.
Objectives of Ban* Holiday Proclamation.
In that proclamation there were four or five main objectives. The
first one was to prevent the withdrawal of any further gold and currency.
The old war statute of 1917 had not been repealed and we used it. It was
an exceedingly useful instrument. The second objective was to provide
some form of circulating medium for the country in addition to the outstanding currency, because a large part had been put into hiding. I have
confidence the public will accept that circulating medium.
We should provide some method by which banking can go on with new
cash coming in. It is proposed through the Treasury Department that
every bank will be authorized to open new accounts, and the money so
deposited in the new accounts can be withdrawn at any time. The only
way in which that money can be kept absolutely safe beyond peradventure of doubt is by using methods it keep it safe—first keeping the money
in cash the way it is put In; second, depositing it in the Federal Reserve
Bank and, third, purchasing Government bonds with it.
Recognized Government bonds are as safe as Government currency.
They have the same credit back of them. And, therefore, if we can persuade people all through the country, when their salary checks come In,
to deposit them in new accounts, which new accounts will be held in trust,
and the money kept in one of the new forms I have mentioned, we will
have made progress.
All I can say is I am very grateful for what the States have done in this
emergency and we want, if possible, to have a general banking situation,
that Is to say, covering National banks and State banks, as uniform as possible throughout the country, and at the same time we want to co-operate
with all of the States in bringing about that uniformity. I have no desire
to have this matter centralized down here in Washington any more than
we can help. I don't believe there is much more to say about banking.
Taxation.
The letter that I sent to you took up several matters.
Conflicting taxation between Federal and State Governments. Every
one of you has been seeking methods to find new sources of taxation.
It has been natural and human to expect that the Federal Government
should try to find some method of raising revenue.
Unemployment Relief.
A second question relates to Federal aid in unemployment relief.
The
Federal Government, of course, does have to prevent anybody from
starving, but the Federal Government should not be called upon to
exercise that
duty until other agencies fail.
The primary duty is that of the locality, the city, county, town;
if they
fall and cannot raise enough to meet the needs, the next responsibility
is on
the States, and they have to do all they can, and if it is proved
that they
cannot do any more and the funds are still insufficient, it is the
duty of the
Federal Government to step in.
We come to the question of co-ordinating work. It is very difficult
to
know in the Federal Government what States are doing well
for unemployment relief and what States are not, and it is my thought that I can
create some kind of central relief agency which will be a fact-finding
body,
which will co-ordinate the work of States and act as a clearing
bowie for
the relief of the Nation. I hope to get that set up in the next
two or three
weeks.
Reduction of Taxation Cost.
The third proposition, the reorganizing and consolidation of local government to reduce the taxation cost. That is your
problem, and it has been
my problem for the past four years.
Mortgage Foreclosures.
And there is the question of mortgage foreclosures, especially on farm
land and also on small homes. There again, we haven't a National policy.
Some of the States are doing it one way and another State is doing it another
way. Some States and some localities are closing their oyes
to existing
laws and do not have any foreclosures. As yet we have no National policy
for it, but I believe we can have one.
Senator Thomas J. Walsh of Montana, Attorney-General
Designate in Roosevelt Cabinet, Dies of Heart
Attack.
Senator Thomas J. Walsh of Montana died suddenly
March 2 of a heart attack while en route from Havana,
Cuba, to Washington, D. C., where, on March 4, he was
to have become Attorney General in the Roosevelt Cabinet.
Senator Walsh who was married in Havana Feb. 25 to the
former Senora Nieves Perez Chaumont de Truffin, was
found dead by his bride on the floor of their train at 7:10 a. m.
President-elect Franklin D. Roosevelt was greatly shocked
when told of the death of his Attorney-General. He canceled all his morning appointments and then issued the
following statement:
The death of Senator Walsh is a grievous loss, not only to the whole
country and to the incoming Administration, in which he was to play so
prominent and important a part, but in deep measure to myself personally.
He was one of my oldest and most trusted friends and one on whose
Volume
136
Financial Chronicle
calm judgment I could always rely. While properly to fill his place in
my Cabinet will be difficult, to fill his place in the circle of my friends
will be impossible.
1661
Governor Moore stressed the necessity for relieving taxpayers through
the reorganization of local government, a co-ordination of local, State
and Federal taxing systems and balancing of budgets.
In its advices from Washington, March 6, the New York
Immediately after convening on March 2 the Senate
adjourned until March 3 out of respect for Senator Walsh. "Times" said in part:
Several resolutions endorsing the President's appeal for confidence in
The House of Representatives also adjourned at 12:55 p. m.
that he might
Government and one
of March 2. From the New York "Herald Tribune" of the for broader powers to specifically recognizing were passed. have to
meet the present crisis
ask
March 3 we quote as follows, details regarding Senator Walsh:
Senator Thomas Walsh has been a familiar figure in the Capital for 20
years, where he had served continuously in the Senate since 1913. His
death ended a brilliant legal and political career which was to have been
climaxed by the highest law enforcement post in the nation.
The Montanan had been looked upon as one of the strongest members
of the incoming Cabinet because of his impeccable reputation, his wealth
of experience and his outstanding ability as a constitutional lawyer. He
was best known to the public as the man who prosecuted the Senate's
Investigation of the Teapot Dome and Elk Hill oil leases during the Administration of President Harding.
To Democrats all over the United States, Senator Walsh was a figure to
rally about at National gatherings. It was the Montanan who presided
over the tumultuous Democratic Convention in old Madison Square Garden
in 1924 which fought out the long deadlock between Alfred E. Smith and
William G. McAdoo for the nomination which eventually was broken by
the selection of John W. Davis as the standard bearer.
Senator Walsh took an active part in the last Presidential campaign,
traveled with Mr. Roosevelt and conferred with him frequently.
Senator Walsh was born at Two Rivers, Wisc.. on June 13 1859.
Funeral services for Senator Walsh were held March 6 in
the Senate Chamber in the presence of President Franklin
D. Roosevelt, the justices of the Supreme Court, Congressional leaders, diplomatic representatives and members of
the Cabinet in which Mr. Walsh had been designated to
serve as Attorney-General.
Resolutions Adopted at Conference of Governors in
Washington Register Faith, and Confidence in
President Roosevelt—Ask Co-operation in His
Behalf by Congress and People.
A resolution expressing faith and confidence in President
Franklin D. Roosevelt was adopted in Washington on March
6 at the conference of Governors, which was held in response
to the invitation issued by President Roosevelt a month
ago,an item regarding which appeared in our issue of Feb. 11,
page 948. The resolution, drafted by a committee composed of Governors White of Ohio, Green of Rhode Island
and Buck of Delaware, was unanimously adopted by the
Governors' conference as follows:
In this anxious hour of a National emergency in our banking and economic life, a heavy responsibility rests on our President to lead us out of
our difficulties. Ho is ready to lead if we are ready to follow. Ne needs
the united support of all our people in carrying out his plans.
Without regard to our political affiliations, we Governors and representatives of Governors of States, met in conference in the City of Washington. March 6 1933. hereby express our confidence and faith in our President and urge the Congress and all the people of our united country to
co-operate with him in such action as he shall find necessary or desirable
in restoring banking and economic stability.
Elsewhere we give the remarks of President Roosevelt
at the conference, as made public at the White House.
According to a Washington account March 6 to the New
York "Herald Tribune," the press was not admitted to the
Governors' conference, but Mr. Roosevelt's speech was made
available in much condensed form and a summary of the
discussion after he had left was provided through Norman
Baxter, a representative of the Democratic National Committee, who was assigned to attend the conference.
From the same account we take the following:
Committee of Three Named.
The conference met in the White House shortly after 11 o'clock and
elected as Chairman Governor John G. Pollard of Virginia, Chairman of
the executive committee of the annual Governor's conference. President
Roosevelt, just back from the funeral of Senator Thomas .1. Walsh, then
addressed the gathering. When he had withdrawn a committee consisting
of Governors Green of Rhode Island. White of Ohio and Buck of Delaware,
was named to call on the Secretary of the Treasury and draft a resolution
concerning the banking situation for presentation to the full conference
in the afternoon.
The first item on the prepared agenda, elimination of conflicting taxes,
was passed over to permit the Governors to air their views on unemployment relief. Senator David I. Walsh, representing Governor Joseph B.
Ely of Massachusetts. said he was in complete accord with the theory
that the Federal Government should not furnish relief funds until local
and State relief agencies had proved incapable of meeting the situation.
He said that when Federal aid should be given it should be administered
through State and local officials and not through any Federal agency.
Governor C. Ben Ross of Idaho then presented his comprehensive plan
based upon the issue of Federal non interest-bearing notes up to $20,000.000,000 to be retired over a period of from five to 35 years. He said that
these notes could be used to put at least 6,000,000 persons to work at the
rate of $3.33 a day on national industrial and agricultural projects. After
Governor Ross had finished, the conference adjourned for luncheon.
Relief Resolution Opposed.
,
At the beginning of the aft rnoon conference, Governor William A. Comstock of Michigan presented a resolution indorsing the substitution of work
direct relief through the Federal financing of State work relief
relief for
programs. The resolution was seconded by Governor Eugene B. Talmadge of Georgia. It was promptly opposed by Governor A. Harry Moore
of New Jersey, who said it was too impracticable and costly and could not
be worked in the Eastern States where the unemployed industrial population was largely concentrated.
Resolutions Passed.
The resolutions, which were passed unanimously with the exception of
one by Governor Comstock of Michigan, asking work-relief legislation,
were as follows:
Governor Pinchot of Pennsylvania.—We, the Governors of the States of
tbe Union, assembled in conference at the White House by the President to
discuss with him and each other matters of vital consequence to the people
of this Nation, do hereby express our warm appreciation of the confidence.
the desire to co-operate and the alertness to the needs of our people which
the President has signified by calling us here. We welcome this opportunity
to plan and work together for the common good.
Governor White of Ohio.—Resolved, That we look approvingly upon the
President's plan for better land utilization, as presented to us this morning,
not only as a measure for the conservation of the Nation's natural resources.
but also as an effective step toward the relief of unemployment: and that
we severally pledge ourselves to use our best efforts to ascertain through
proper surveys the acreage that might be made available for such a program
in our prospective States.
Pledge Co-operation.
Governor Ehringhaus of North Caroltna.—That this conference desires to
express its confidence in the leadership of the President and its desire that
he be granted immediately by the Congress such broad powers as may be
necessary to enable the Executive to meet the present challenging emergency;
and we. as Governors of the several States, here assembled, hereby pledge
to him our whole-hearted and sincere co-operation and support in his efforts
to rehabilitate the Nation and end the present terrible depression.
Governor Comstock of Michigan.—That this conference endorse the substitution of work relieffor direct relief as expeditiously as possible. That the
Federal Government finance State work-relief programs under State administration.
The Comstock resolution was opposed by Governor Moore of New Jersey,
who said he did not see how work relief would aid the populous Eastern
States, because not enough work could be offered. Governor Pinchot said
that it was impossible for the Staten to go on as they had been doing, and
that the necessity for action and for readjustment of relief plans was so'
great that unless something were done immediately conditions would become very bad.
Both Governor Comstock and John R. Foley, representing Governor
Olsen of Minnesota, urged that Section 2 of the Reconstruction Finance
Corporation Act, relating to farm loans, be liberalized. Mrs. J. C. Green'
way, representing Governor Moeur of Arizona, asked that an emergency
railroad administration be organized, and also an emergency supply service, so that surplus food stocks in various parts of the country may be
moved to sections which lack specific foods for live stock and persons.
List of Governors Attending.
The Governors or their representatives present were:
Al b
B. M. Miller.
Nevada—Fred B. Balzer, by Cecil
Arizona—B. B. Moeur, represented
W. Creel.
by Mrs. J. C. Greenway.
New Hampshire—John G. Wynant.
Arkansas—J. M. Futrell, by C. G. New Jersey—A. Harry Moore.
Smith.
New Mexico—Arthur Seligman. by
Colorado—Edwin C. Johnson, by
0. C Wood.
John T. Barnett,
North Carolina—J.C.B.Ehringhaus
Ohio—George White.
Delaware—C. D. Buck.
Oklahoma—William A. Murray, by
Florida—David Sholtz.
G. B. A. Robertson.
Idaho—C. Ben Ross,
Pennsylvania--Gifford Pinchot.
Indiana—Paul V. McNutt.
Rhode Island—Theodore F. Green.
Iowa—Clyde L. Herring,
South Carolina—I. C. Blackwood.
Kentucky—Ruby Laffoon.
Tennessee—Hill McAlister.
Louisiana
-0. K. Allen.
Texas—Mrs. Miriam Ferguson. by
Maine—Louis J. Brann.
Mrs. J. E. King.
Massachusetts—Joseph B. Ely, by
Virginia—John Garland Pollard.
Senator David I. 'Walsh.
Minnesota—Floyd B. Olsen, by John Washington—Clarence D. Martin,
by Frank T. Bell.
R. Foley.
West Virginia—H. G. Kumpf.
Mississippi—Samuel Conner.
Montana—John E. Erickson, by Wisconsin—A. G. Schmedeman,
Wyoming—L.A. Miller.
J. A. Lovelace.
Groups Urge United Support.
Officials of labor and farmer organizations, as well as prominent citizens,
joined with Rear Admiral Richard E. Byrd yesterday In calling for united
support of the President, and a sharing of the grave responsibility which
rests upon him. Politics and sectional Interest should be cast aside, said
the statement, and prompt and decisive action of national scope taken to
prevent economic collapse. The statement concluded:
"We,a coalition committee of different groups and political and religious
faiths, respectfully request that you join the other Governors of our country in the issuance of a proclamation, on Wednesday, March 8 1933, in
support of the President of the United States and our institutions, thus
enabling the whole people to declare in unison their confidence and faith
In our President. This would constitute the people's appeal to the patriotism of Congress, which we know they possess in common with all, to cooperate with the President in taking such action as will guarantee such
economic stability, restore confidence and thereby relieve unemployment
and widespread distress."
It was signed by the following:
Richard E. Byrd, Chairman,
Dr. Harry Emerson Fosdick.
William Green, President of the Rabbi Stephen Wise.
American Federation of Labor.
Alfred E.smith.
Louis J. Taber, Master of the Na- Newton D. Baker.
tional Grange.
Dr. Nicholas Murray Butler.
Edward A. O'Neal, President Ameri- H. G. Harriman.
can Farm Bureau Federation,
Daniel Willard.
His Eminence George, Cardinal Walter Lippmann.
Mundelein.
President Roosevelt in Message to Congress in Effort
to Balance Budget Seeks Powers to Effect Cuts in
Veterans' Compensation and Government Salaries.
Yesterday (March 10) President Roosevelt addressed a
message to Congress in which he asked for special legislation
which would clothe him with power to prescribe the administrative details in effecting outs in pensions and other
veteran benefits, and also in Government salaries. The
balancing of the budget is the objective in these proposals
of the President, whose message follows:
1662
Financial Chronicle
March 11 1933
The nation is deeply gratified by the immediate response given yesterday
Validation of what already has been done by the President and what
may hereafter be done under the trading with the enemy act to deal with
by the Congress to the necessity for drastic action to restore and improve
the present emergency.
our banking system.
The bill made a peacetime record in Congress. It was passed unaniA like necessity exists with respect to the finances of the Government
mously in the House after forty minutes of debate, without a completed
itself which requires equally courageous, frank and prompt action.
copy being available to a member. It was approved by the Senate three
For three long years the Federal Government has been on the road toward
hours latex by a vote of 73 to 7. Opposing the measure were Senotors
bankruptcy.
Borah, Carey, Dale, La Follette, Nye, Costigan and Shipstead.
For the fiscal year 1931 the deficit was $462,000,000.
The new Treasury banknotes "shall be receivable at par in all parts of
For the fiscal year 1932 it was $2,472,000,000.
the United States" for the same purposes as are national bank notes and
For the fiscal year 1933 it will probably exceed $1,200,000,000.
shall be direct obligations of the Federal Reserve, Banks issuing them.
• For the fiscal year 1934, based on the appropriation bills passed by the
Issuance of national banknotes is limited to the amount of the capital
last Congress and the estimated revenues, the deficit will probably exceed
stock of the bank of issue, but this restriction does not apply to Federal
$1.000.000,000 unless immediate action is taken.
Reserve Bank notes. Various estimates have been made as to the amount
,Thus we shall have piled up an accumulated deficit of $5,000,000,000.
of additional currency which might be quickly available under the various
With the utmost seriousness I point out to the Congress the profound
provisions of the bill, one government expert putting the total at $2.800,effect of this fact upon our national economy.
000.000 or more, with much depending upon rulings by the Reserve System
It has contributed to the recent collapse of our banking structure. It
as to eligible collateral.
has accentuated the stagnation of the economic life of our people. It has
The bill was not amended in a single particular from the form In which
added to the ranks of OW unemployed. Our Government's house is not in
it was received from Secretary Woodin and Attorney General Cummings,
order, and for many reasons no effective action has been taken to restore it
who drafted it.
to order.
Upon the unimpaired credit of the United States Government rest the
The "Times" in its Washington dispatch Mar. 9, likewise
safety of dep•sits,the security ofinsurance policies, the activity of industrial
said:
enterprises, the value of our agricultural products and the availability of
After Congress had passed emergency legislation designed to effect a
employment.
wholesale resumption of banking activities throughout the United States
rrhe credit of the United States Government definitely affects these fundaand the measure had been signed by the Executive. all within eight hours
mental human values. It, therefore, becomes our first concern to make
and thirty-seven minutes, President Roosevelt was forced to issue a proclasecure the foundation. National recovery depends upon it.
mation at 10:10 o'clock to-night, extending the bank holiday and gold
rroo often in recent history liberal governments have been wrecked on
embargo indefinitely until the Treasury Department could make regulations
rocks of loose fiscal policy. We must avoid this danger.
to meet the new ccruiltions. This may be as late as Monday.
It is too late for a leisurely approach to this problem. We must not wait
The President last night had said that a large number of banks could
to act several months hence. The emergency is accentuated by the necessity
open to-morrow.
of meeting great refunding operations this spring. We must move with a
Keen disappointment at the outcome was apparent at the White House.
direct and resolute purpose now. The members of the Congress and I are
where President Roosevelt and his associates had worked almost incessantly
pledged to immediate economy.
since his inauguration last Saturday to bring about the reopening of the
I am, therefore, assuming that you and I are in complete agreement as
banks of the country.
to the urgent necessity, and my constitutional duty is to advise you as to
the methods for obtaining drastic retrenchment at this time.
Sense of Disappointment Felt.
in general terms. I am pointing out a definite
I am not speaking to you
The President's sense of disappointment was radiated to leaders of
road.
Congress.
The last Congress enacted legislation relating to the reorganization and
The President had told them that enactment of the emergency banking
elimination of executive agencies, but the economies thus to be affected are
law would bring about the opening of a large number of banks to-morrow
small when viewed in the light of the great deficit for the next fiscal year.
and they had held out this statement to their colleagues as the reason for
They will not meet the pressing needs of our credit situation.
haste, resulting in such action as the House passing the bill unanimously
Provision for additional saving is essential, and therefore I am asking
after forty minutes' debate and the Senate following within three hours.
the Congress to-day for new legislation laying down broad principles for
Undismayed by the turn of affairs, the President and his Congressional
the granting of pensions and other veteran benefits, and giving to the
advisers went into conference to-night to work out the task for the remainder
Executive the authority to prescribe the administrative details.
of the present extraordinary session.
We are unanimous in upholding the duty of the Government to care
It was expected that the President would send up a message urging two
for those who suffer in its defense and for their widows and orphans. The
other legislative enactments, one to provide for unemployment relief and
application, however, of this great principle to large numbers of people
the other carrying out the economy program which the President's party
involves complications—so great that it is almost impossible to draw
has promised.
legislation with sufficient flexibility to provide substantial justice in varying
After the White House conference ended Senator Glass said that the
situations.
bank holiday had been continued, first, to permit the State banks to come
The proposed legislation states the principles and, limited by them.
under the shelter of the Federal Reserve System, and second, to give the
permits the Executive to draw the lines of differentiation necessary to
Federal Reserve and regional banks opportunity to ascertain more
accurately
justice.
than the Controller of the Currency had been able to do, what banks should
la In accord with the same purpose of substantial justice I request also
be opened when the holiday ended.
the enactment of legislation relating to the salaries of civil and military
employees of the Government.
Congress Moves with Speed.
This would repeal the existing furlough plan, substituting therefor a
The new Congress moved with a speed that dazzled the veteran members
'general principle and authorizing the Executive to make application of
of that assembly. Within less than seven hours and a half the Congress
this principle.
convened in special session, organized, received the message from President
The proper legislative function is to fix the amount of expenditure,
Roosevelt asking a measure to "reopen all sound banks," passed that
the means by which it is to be raised and the general principles under
measure and sent it to the White House.
which the expenditures are to be made.
An hour and thirty-seven minutes after the Senate passed the act by
a
The details of expenditure, particularly in view of the great present
vote of 73 to 7, the House having adopted it unanimously, it became law
enlergencY, can be more wisely and equitably administered through the
by the signature of Franklin D. Roosevelt. . . .
flexibility of the measures which I am proposing is not
Executive. The
It was expected that possibly by Saturday, and certainly by Monday,
only practical but proceeds along the road of constitutional government.
those banks which have demonstrated their soundness to the inspectors of
Such economies which can be made will, it is true, affect some of our
the Federal Reserve System will be permitted to open.
citizens: but the failure to make them will affect all of our citizens. The
Officials were besieged all day with applications from State banks to
very stability of our Government itself is concerned, and when that is
enter the protective zone of the Federal Reserve System as expanded by
concerned the benefits of some must be subordinated to the needs of all.
to-day's legislation. . . .
When a great danger threatens our basic security it is my duty to advise
The President urged action, and he got action. Senators who for years
the Congress of the way to preserve it. In so doing I must be fair not only
had held unswervingly to certain convictions on banking and currency
to the few but to the many. It is in this spirit that I appeal to you.
swallowed them in the urge for speed in the banking crisis. Leaders of the
If the Congress chooses to vest me with this responsibility it will be
opposition party laid down a plea for the support of President Roosevelt
exercised in a spirit of justice to all, of sympathy to those who are in need
with as much feeling as if he had been the champion of their own band.
and of maintaining inviolate the basic welfare of the United States.
Mr. Roosevelt indicated in his message that he would ask still other
I ask that this legislation go into effect at once without even waiting
things of this extra session. He mentioned "two other measures" which he
for the beginning of the next fiscal year. I give you assurance that if this
regarded as of immediate urgency. Congressional leaders believed that one
Is done there is reasonable prospect that within a year the income of the
of them would be a $500,000,000 public works bond issue as an aid to unGovernment will be sufficient to cover the expenditures of the Government.
employment, and the other a reorganization order in the interest of public
FRANKLIN D. ROOSEVELT.
economy.
Congressional Action on Emergency Bank Legislation
Proposed by President Roosevelt.
The full text af the bill is given on
page 1625 of this issue.
The new emergency bank legislation asked for by President Roosevelt in his message addressed to Congress with
the convening of the extra session on Mar. 9 was speedily
acted upon by Congress, as a result of which it was placed
on the statute books before the close of the day. As stated
in a Washington dispatch Mar.9 to the New York "Times"
the new banking law was designed to provide both the authority and the currency with which to reopen all the solvent
national banks and Federal Reserve members,and,indirectly
their correspondents. From the same account we quote:
Briefly the act provided:
Issuance of new Federal Reserve Bank notes in an amount necessary to
meet the present situation, such notes to bear an interest tax to assure
their retirement when no longer needed.
A grant to the President of practically dictatorial powers to stop hoarding,
retrieve gold from hoarding and embargo gold.
Extension of power to the Executive branch for such control over all
National banks as may be necessary for the protection of depositors and
creditors, including creation of a "conservator"sustem for these institutions.
Class Supports the Measure.
The only delay in meeting the President's request for legislation was
the time it took to explain the measure to the Senate Banking and Currency
Committee. Senator Glass, author of the Federal Reserve Act, who later
told the Senate that under ordinary circumstances the measure would be a
"shock" to his convictions, performed the task of explaining
it.
The Virginian later took the floor and espoused it as a "great piece of
legislation," great because it met so paralyzing an emergency. He considered his support of the measure a patriotic duty.
As for the House. it did not delay. It did not even watt for a copy of the
bill. Drafted as it was in an all-night conference of Congressional leaders
and administration officials, it was still in an unfinished form this afternoon
and was corrected from time to time in the type forms at the Government
Printing Office.
Impatient at the delay. the House leaders brought up the subject under
unanimous consent. They used a first draft of the bill, corrected by pencil.
They allowed only forty minutes' debate and not all of this actually was
used, as the 435 members demanded as with one voice, "Vote-" VoteVote-"
No Roll-Call in the House.
Democratic and Republican members alike agreed that "this is no time
to argue," and within less time than it takes to tell it on paper the House
passed the bill without a single dissenting vote—without even asking a
roll-call—and sent it along to the Senate, several hundred of its members
following it over to the other side of the Capitol.
As the time wore on to-day, telegrams began to reach Senators and
Representatives complaining about certain features understood to be in
the bill. One of the principal complaints was that it dealt only with
national and Federal Reserve Banks.
Volume 136
Financial Chronicle
Senate leaders explained at the outset that Congress and the Federal
Government had jurisdiction only over institutions authorized by Federal
law. This contention paved the way for the first amendment offered to
the measure.
Long Seeks an Amendment.
Senator Long insisted that the little banks "at the forks of the creek"
could not open to-morrow under the plan as outlined in the bill. He
proposed an amendment giving the President carte blanche to muster all
State banks, should he deem it necessary, into the Federal Reserve System
without any of the requirements for purchase of stock in the Federal
Reserve Banks as provided in the law.
"You aro proposing to open only the big banks," the Louisiana Senator
declared. "They already have loaded the poor State banks down with
foreign bonds and German marks. You've made the word of Charles E.
Mitchell law and now it is only banks like his that you propose to reopen."
Senator Adams interrupted to tell Senator Long that the State banks of
Colorado would open, to-morrow right along with the national banks and
Federal Reserve members,
"The Senator is to be congratulated then," Senator Long said. "But
I am afraid it will be a dark sunrise for the people in Louisiana. Friday
is hanging day down in our State. I don't know about this opening of
banks on Friday anyway. I'll admit I'm a bit superstitious about it.
But I tell you here and now, you are not saving banks if you don't include
State banks in the terms of this act"
Glass Replies to Long.
Senator Glass was leaning forward in his seat, nervously tapping on his
desk all during Senator Long's discourse. He had not intended to speak,
but he took the floor to protect the measure against the "pin pricks,"
of amendments.
"Mr. President," he began, "Congress is dealing in an unprecedented
way with an extraordinary and desperate situation in the country.
"Under the proclamation of the-President and of the Governors of many
of the States, all of the banks in the country are now closed. The proclamation of the President automatically expires at midnight to-night; and
unless some remedial legislation is enacted before that hour, we will have
an indescribable condition of distress in the United States to-morrow
"This bill undertakes to apply, in the mergency, remedial powers vested
in the President of the United States, the Secretary of the Treasury and
the Comptroller of the Currency. It broadens in a degree that is almost
shocking to me the currency and credit facilities of the Federal Reserve
Banking System and largely extends these facilities to State banks which
are not members of the Federal Reserve Banking System, that have never
endured one penny of the expense in the establishment of the system or in
Its maintenance and do not do so to-day.
"This talk about closing all the State banks Is based upon a total misunderstanding of the provisions of the bill. We do not close by act or by
implication a single, solitary State bank in the United States—not one.
These banks are within the jurisdiction and under the authority of the
respective States, and every one of them may be opened at daybreak
to-morrow morning by authority of the respective States."
Advantage for State Banks
Senator Couzens interrupted. Ile asked:
"Is it not possible, by indirection, under this bill to enable the State
banks more easily to open because they will have more liberal opportunities
to borrow from national banks?"
"Yes, undoubtedly so—from their correspondents in the Federal Reserve
System," Senator Glass replied.
Senator Vandenberg broke In.
"In the final analysis would it be fair to say that the effect of the bill
will be largely determined by the interpretation given its administration by
the Comptroller?" he asked.
"Ninety per cent of the effectiveness of this and of almost any other
legislative measure depends upon its administration," Senator Glass said.
Senator Reed interrupted.
"All of us have been deluged with inquiries from State banks to-day
that are not members of the system," he said. "Am I correct in understanding that the effect of this bill upon the opening of those banks will be
that they will not have to receive permission from Washington; they will
not have to receive permission from the Comptroller; they look, as before,
to the State banking authorities of the respective States for permission to
open, and if they get that permission there is nothing to stop them from
opening up at the end of the holiday?"
"The Senator has stated the case precisely," Senator Glass answered.
Glass Assails Amendment.
Senator Glass criticized particularly the amendment of Senator Long
was not even a layman in the Senate who did not know that
He said there
to compel State banks to join the Federal Reserve System would be invalid.
"The Senator has misstated the facts," broke in Senator Long. "It does
not compel them; it permits them to become members. The Senator wants
to get his record straight."
"The Senator has his record quite straight," replied Senator Glass, "and
the Senator does not relish having the Senator from Louisiana saying that
he has misrepresented anything."
"The Senator is mistaken on the facts," Mr. Long said with a smile.
"Then the Senator had better be more civil when he first starts out,"
Senator Glass snapped, and proceeded with his speech.
As to State Banks' Rights.
"There is not a desirable State bank in the United States which is not
authorized to make application and gain membership in the Federal Reserve
Banking System before noon to-morrow, not one," he continued.
"But to talk about the President issuing an edict declaring State banks
to be members of the Federal Reserve System, State banks which have persistently for eighteen years remained outside of the fold and protection of the
Federal Reserve Banking System; State banks over which the Federal Government has not even the power of examination or espionage of any description; State banks which may do a variety of banking business not
tolerated in the Federal Reserve Banking System.
"Yet the President of the United States destitute, necessarily, of any
knowledge of the condition of these banks, with no possible opportunity
in weeks and weeks to ascertain their condition, is to cover them arbitrarily
by a blanket order and have them become members of the Federal Reserve
Banking System, enjoying all of the privileges of the system.
Says Crisis Impels Action.
"I said a while ago that there are provisions of this bill so broad and
iberal that no friend of the Federal Reserve Banking System in ordinary
times would tolerate them for a moment
"Under the provisions of the bill, when member banks shall have exhausted their eligible paper, they may then bring their 'cats and dogs,' if
you please, to the Federal Reserve Bank and with the assent of the Federal
Reserve Board have them discounted under this bill, the whole thing submitted to the judgment of the Federa lReserve Board and banks"
1663
Senator Reed broke in,"Lest some misunderstanding occur of what the
Senator has just said." he observed,"I am sure the Senator does not mean
to intimate that those loans would be made by the Federal Reserve Banks
without the collateral which they believed to be strictly good."
"Oh, no," Senator Glass replied. "It is a question of judgment. It
is a question of administration; but in dire and distressful times like these
the Senator knows, as well as I know, that the Federal Reserve Board
and banks would be very liberal in their interpretation of this power and
In their dealings with these banks.
New Reserve Bank Problem.
"Not only that, but it is provided under this measure and a provision
of law passed by the last Congress that individuals may bo business with
the Federal Reserve Banks, something that has never been done before
since they were organized; to permit individuals who have eligible paper
in their possession and who cannot get accommodated at the member bank
to take it directly to the Federal Reserve Banks and be accommodated."
Senator Fletcher, Chairman of the Banking and Currency Committee,
arose.
"Mr. President, the Senator referred to 'cats and dogs,'" he began.
"He means paper that has not heretofore been eligible to rediscount may
come in under this bill?"
"Undoubtedly," Senator Glass responded,"under two provisions of the
bill, and will come in, in large degree.
New Currency.
"An outstanding provision of the bill is that dealing with the issue of
new currency. Senators will understand that there are two different kinds
of Federal Reserve notes. Federal Reserve notes are required to be
buttressed with 40% gold reserve, but there is what the Act calls a Federal
Reserve Bank note, which requires no reserve whatsoever. It is on a par
with national bank notes. It is secured by the bonds of the United States
and we have authorized in this bill the issuance of some billions of dollars
of Federal Reserve Bank notes to relieve the situation.
As to Ban on Gold Hoarding.
"About the only really arbitrary provision of the bill is that provision
which authorizes the President, under the act of October 1917 to embargo
gold payments and to penalize the hoarding of gold and currency.
"I do not know who there is with wit or wisdom enough to define hoarding.
Under that provision of the bill any Senator who drew his salary three or
four days ago and kept it in his pocket might be regarded as a hoarder
and fined $10,000 and put in the penitentiary for ten years if the act should
be administered in that unwise way..
"But there is no difficulty in the world about following gold withdrawals
to their destination and penalizing those people who are so unpatriotic as
to accentuate this desperate situation by undertaking to deplete the gold
of the banks.
"The banks themselves should have done that long ago. They have not
lifted their little finger to help the situation. They have swooped down
here to Washington to have the Federal Government help them instead of
helping themselves and helping the business of the country.
"Every man who stands behind the bank counter and is worthy of the
name of banker knows perfectly well when his customer comes in to take
gold over the counter what he wants with it. He knows that ordinarily
that customer does not want it for business purposes, but wants to hide it
away and hoard it.
"Under that provision of the bill I anticipate very little difficulty in
tracking the gold down and in punishing by fine and imprisonment if
necessary people who thus hoard their gold.
Qualifications of Bankers.
"So largely with currency—every banker ought to know the business of
the patrons of his bank. They do in Great Britain. They do in Canada.
"In Canada at the beginning of the fiscal year every patron of a bank,
every business man, has to file with the bank his budget for the year and his
probable requirements in credit and currency. If during the year he undertakes to exceed his requirements as filed he has to give to the banker a
reason for it.
"Little banks—little corner grocerymen who run banks that get together
$10,000 or $15,000. as it may be, and then invite the deposits of their community and at the very first gust of disaster topple over and ruin their
depositors.
"What we need in this country is real banks and real bankers. If a
struggling girl wants to get a place here in Washington as a stenographer or
typist, she has to have a civil service examination, and yet we have people
spread all over the country from one end to the other calling themselves
'bankers' and all they know is how to shave notes, at an excessive rate of
Interest, They are not bankers.
Appeal for Swift Action.
"Mr. President, I do not want to delay the consideration and enactment
of this bill into law. I want to refer now to just one further aspect of the
problem. I have never known in the history of this country, except in time
of war, such non-partisan concert, such a desire upon the part of every
reasonable man to co-operate and to relieve the situation.
"At the White House last night we had assembled there the leading
representatives of both political parties in both houses of Congress. With
one voice they all agreed, almost if not without qualification, in saying that
they would unite to enact this legislation before midnight to-night and that
if there might be discovered in it any defects they should be remedied later.
"But let us to-day do what will result in the opening to-morrow or within
the next few days of 5,000 member banks of the Federal Reserve System,
which banks in turn will give out their facilities in an indirect way to their
correspondent non-member State banks and help the whole banking situation
In the country.
"There are provisions in the bill that shock me, which in ordinary times
I would not dream of subscribing to, but we have a situation that invites
the patriotic co-operation and aid of every man who has any regard for his
country and for its business interest.
"I appeal to you, Senators, not to load it down with amendments. Let
us accept the bill almost if not unanimously passed by the House of Representatives and not alter it and have to go into controversial conference that
might take us beyond the time when aid is imperatively needed."
Senator King of Utah broke in:
"I am sure it will be gratifying to the Senator from Virginia as well as to
other Senators to know that within the past hour, as news has been flashed
throughout the country of the terms of the bill, there have been a large
number of applications by State banks to come into the Federal Reserve
System.
"I am informed by Dr. Miller that they are coming in now by wire
and
that yesterday $35,000.000 of gold was restored to the banks in New
York
and large quantities to-day are being poured into the banks throughout the
United States."
Senator Glass continued:
"It does not require any gold basis. Therefore, it is not a drain upon
the gold reserves so far as the gold reserves are concerned. I am coming
1664
Financial Chronicle
to have less and less respect for a gold reserve which cannot be used when
It is needed to relieve the country.
, "What is a reserve? It is a sum of money retained in the banks to
meet emergencies, and yet when an emergency arises a banker will tell
us he cannot use his reserves except under penalty.
"The Federal Reserve Board is authorized by law to suspend all reserves
for a period of 90 days, and then for an additional period of 90 days, covering a period of six months, and I have been urging them for six months to
make the suspension, and they did it just three or four days ago.
"There is talk about closing the State banks. The Senator from Pennsylvania has the correct idea. There is not a State bank in a State of
this Union which will not be privileged to open ,to-morrow morning if
It wants to do so, under State authority, and there is nothing the President
of the United States or the Congress of the United States can do to prevent it.
"There may be proclamations made, and some of us are disposed to
think that most of these proclamations have been invalid and unconstitutional.
"The very psychological effect of the prompt enactment of this legislation will be tremendous. In my view, it will do more than anything
that has been suggested to restore confidence, and what we need after all
is the restoration of confidence.
"I say to you. Senators,that it is the least objectionable of all the multitude of suggestions that have been presented. We have been trying
In mass meetings to frame a banking bill which is an utterly futile undertaking. Not until last night and extending ;nto the early hours of this
morning, with the assistance of experts, of actuaries, of practical banking
men, were we enabled to frame a bill.
"Although the responsibility in no sense is mine officially. I was there
as an unofficial observer. I say that this is the least objectionable of
any proposal that was made. I have not slept an hour since night before
last, and now to be pestered with attempts to pin-prick a great measure
like this is not at all agreeable"
Senate Eager for Action.
The Senate responded to Senator Glass, voting down every amendment offered. Senator Gore offered a substitute for the Long amendment,
providing that State banks might be taken 'nto the Federal Reserve System
as "associate members" for two years so al' State banks might ride out the
depression.
The Gore substitute went down without a roll-call and the Long amendment followed it shortly.
Senator Vandenberg was the only Republican to raise his voice in what
seemed a protest. He said that except for the pressing situation, he
would hesitate a long time before voting to embark on such a venture as
anticipated by the bill.
"The Comptroller is about to decide which banks are solvent and which
banks are not solvent," he said. "I think the bill will be an utter disppointment in many sections of the country and I fear that one of those
sections will be my own State of Michigan."
Such other remarks as were made were short. These were largely
perfunctory or consisted of inquiries as to the meaning of the language.
Itiwas evident that the Senate wanted to act. The vote was ordered at
7.30 p. m., just three hours after copies of the bill were distributed among
Senators.
Time Table of Developments On Emergency Bank Act
Passed By Congress.
The time table of developments on the new emergency
bank legislation passed by Congress on March 9 was indicated in the following Associated Press account from
Washington March 9 published in the New York "Times."
12:04 A. M.—President and Congress leaders end conference at which
support for his emergency legislation was pledged.
9:15—Roosevelt at desk for final conferences on bill.
10:30—Roosevelt makes final revision of message to Congress.
11:30—Congressional and banking leaders at Capitol alter bill details.
• 12 Noon—Congress's extra session called to order.
12:30—Roosevelt message calling for immediate action delivered.
, 12:37—Message read to Senate.
• 1:40—Bank bill introduced in Senate, referred to committee.
• 2:55—House begins consideration of bank bill.
4:05—House passes bill without dissent.
' 4:10—Senate Banking Committee approves bill.
4:30—Senate begins its consideration.
7:23—Senate passes bill by 73 to 7 votes.
• 7:40—Speaker Rainey calls House to order and signs bill.
7:55—Vice President Garner signs bill and messenger leaves with it for
White House.
8:36—President Roosevelt signs the bill, making it law.
10:10—President Roosevelt issues proclamation, extending banking
holiday indefinitely.
President Roosevelt Granted Broad Power in Bill
Passed by Congress Providing for Reorganization
of Government Agencies—Increased Funds for
Federal Trade Commission.
Almost unlimited authority to reorganize the agencies of
government is conferred on President-elect Roosevelt in the
Treasury-Post Office appropriation bill, which was agreed
on finally by Congress on Mar. 3 and sent to Mr. Hoover
for approval. The Washington correspondent of the New
York "Journal of Commerce" on Mar: 3 in reporting this,
added:
This action, taken on the eve of adjournment of the lame duck session,
brings to an end the long discussion between the two branches of Congress
over the terms of the new powers.
The incoming Chief Executive will be enabled to consolidate or abolish
executive agencies, while the Bureau of Efficiency is automatically eliminated. The Federal Trade Commission to-day won its fight in Congress
for an increased appropriation to complete its power and gas utilities investigation when the House acceded to the demands of the Senate and agreed to
provide the commission with $1,082,500 for the fiscal year 1934.
In asking the House to agree to the amendment of the Senate which raised
the fund to this amount from the $510,000 previously approved. Representative Wcodrum (Dem., Va.), in charge of the appropriation, pointed out
that CDOW the reorganization Dowers to be granted President-elect Roose-
March 11 1933
velt he will be authorized to impound any of the amount not deemed necessary for the inquiry.
Drops Subsidy Fight.
The added powers to the President-elect are provided in the TreasuryPost Office appropriation upon which final Congressional action was taken
to-day by the Senate in approving the conference report. Faced with the
prospect of preventing enactment of the appropriation before adjournment
to-morrow, the Senate in agreeing to the report dropped its fight against
the air mail subsidy appropriation and its insistence that department
heads cut their expenditures 5% during the next fiscal year.
The adoption by the House of the Conference Report on
the Treasury Post Office Appropriation Bill occurred on
Mar. 1, a dispatch on that date from Washington to the
New York "Times", stating:
•
Adoption by the House of the Treasury-Post Office bill brought near
to completion the legislation most desired by President-elect Roosevelt
from the present Congress. He sought power to remodel the government
completely, with authority to consolidate and eliminate bureaus and agencies
and impound their appropriations in the interests of economy.
The report as adopted by the House to-day was a complete agreement
with the conference committee. It is expected to get Senate approval
within 48 hours.
Other changes were also made in the Treasury-Post Office appropriations.
The domestic air-mail section was amended to provide $15,000,000 for that
activity during the fiscal year 1934: the Bratton-Costigan amendment,
directing a 5% arbitrary cut in all appropriations for the next fiscal period,
was deleted; the ban on automatic promotions in the Federal service was
extended for another year and the 8 1-3% Federal pay cut was extended
to the armed services as well as to the civil service.
President Roosevelt's Proclamation Declaring FourDay Bank Holiday—Period Later Extended—Exports of Gold Prohibited Under War Time "Trading-with-Enemy" Act—Issuance of Clearing House
Certificates Authorized —Also Acceptance of New
Deposits by Banks Against Which Withdrawals
Could Be Made—Treasury Conference on Banking
Situation—Federal Reserve Heads and Other Participants.
Invoking the provisions of the "Trading-with-the-Enemy
Act" of 1917, President Franklin D Roosevelt, in a proclamation dated 1 a.m. March 6 (Monday), acted to prevent
the exporting, hoarding or earmarking of gold or silver coin
or bullion during a four-day bank holiday from March 6 to
March 9, inclusive, declared thereunder. The proclamation, which made the bank holiday nationwide, (following
bank moratoriums in some forty or more States), was declared by President Roosevelt to have been necessary with
the creation of "a national emergency" growing out of the
"heavy and unwarranted withdrawals of gold and currency
from our banking institutions," and "extensive speculative
activity abroad in foreign exchange," which "resulted in
severe drains on the nation's stocks of gold." In his proclamation the President likewise prohibited, for the four-day
period, all banks from paying out deposits, making loans or
discounts, dealing in foreign exchange, transferring credits
from the United States to any place abroad, or transacting
any other banking business. The proclamation stipulated,
however, that during the four-day holiday "the Secretary
of the Treasury, with the approval of the President and under
such regulations as he may prescribe, is authorized and
empowered:—
(a) To permit any or all of such banking institutions to perform any or
all of the usual banking functions.
(b) To direct, require or permit the issuance of Clearing House certificates or other evidences of claims against assets of banking institutions, and
(c) To authorize and direct the creation in such banking institutions of
special trust 'accounts for the receipt of new deposits which shall be subject
to withdrawal on demand without any restriction or limitation and shall
be kept separately in cash or on deposit in Federal Reserve banks or invested
in obligations of the United States.
On March 9 President Roosevelt issued a proclamation
extending the bank holiday and gold embrago indefinitely.
Prior to the issuance of his bank-holiday proclamation,
President Roosevelt also issued a proclamation calling a
special session of Congress on March 9. As to the bank
holiday proclamation, a Washington dispatch March 5 to
the New York "Times" said in part:
This sweeping action was taken after a day of conferences, among officials
and bankers, the President taking recourse to war powers granted under
the Trading-with-the Enemy Act. .
Officials Act Quickly.
The Federal Reserve Board and Secretary Woodin, with the advice of
former Secretary Ogden L. Mills acted immediately after the issuance of
the proclamation to make It effective.
The proclamation was issued at 11 o'clock, bringing to an end a series
of conferences held by Treasury officials and the new Cabinet throughout
the day.
The proclamation affects all Federal Reserve banks and National banks.
trust companies,savings banks, building and loan associations, credit unions
or other institutions engaged in any form of banking business.
The,proclamation provides for a fine of $10,000 or imprisonment of not
more than ten years or both for any violation of its provisions by gold
hoarding or otherwise.
Volume 136
Financial Chronicle
The President acted under Section 5(b) and Section 16 of the Trading-withthe-Enemy Act to place these extraordinary restrictions on the Nation's
banking structure. The courts have interpreted the act as giving the
President authority to bring about a complete suspension of gold and silver
payments as well as an embargo on their export.
Section 5(b) of the Trading-with-the-Enemy Act of Oct. 6 1917. reads
That the President may investigate, regulate or prohibit, under such
rules and regulations as he may prescribe, by means of license or otherwise,
any transaction in foreign exchange, export or earmarkings of gold or silver
coins or bullion or currency, transfers of credit in any form (other than
credits relating solely to transactions to be executed wholly within the
United States), and transfers of evidence of indebtedness or the ownership
of property between the United States and any foreign country, whether
enemy, ally of enemy or otherwise, or between residents of one or more
foreign countries, by any person within the United States: and he may
require any such person engaged in any such transaction to furnish, under
oath, complete information relative thereto, including the production of
any books of account, contracts, letters or other papers in connection
therewith in the custody or control of such person, either before or after
such transaction is completed.
Section 16 of the act is that which imposes the penalties mentioned by
the President in his proclamation.
Most Drastic Peace-Time Power.
This exercise of Presidential power, the most drastic ever taken in peacetime to safeguard the nation, climaxed the nation-wide sweep of State
banking holidays which had reached into practically every State of the
Union on the day that President Roosevelt was inaugurated.
The banking situation on March 4 overshadowed every other feature of
the inauguration of the new Administration and during the following 24
hours reached a point where the President and his advisers were forced to
agree that national leadership was required.
In diplomatic circles it was expected that France would follow suit and
restrict the exporting of gold.
Even while President Roosevelt was reviewing the inaugural parade,
two hours after he had taken the oath of office, members of his Cabinet and
other close advisers were holding conferences in the rear of the reviewing
stand.
Many of the measures embraced in the President's proclamation to-night
were advanced in tentative form at such informal conferences. Secretary
of the Treasury Woodin, after consulting with Secretary of State Hull and
other officials, left the scene and summoned by telegraph and telephone
governors of Federal Reserve Banks and leading bankers to join with them
to-day in perfecting the provisions of the forthcoming Presidential proclamation.
The atmosphere of official Washington was tense throughout inauguration day, and even more so this morning when Federal Reserve officials
and leading bankers assembled early at the Treasury Building to study
measures to prevent a complete banking collapse. . . .
To-day's conferences at the Treasury, which opened the series of meetings
to devise an emergency banking program, began at 10 o'clock this morning and continued throughout most of the day and night except for brief
interruptions for luncheon and dinner. Leading bankers within striking
distance of Washington reached here on the morning trains in response to
Secretary Woodin's summons, made by long-distance telephone and telegraph late last night.
Secretary Woodin was the first to arrive at the Treasury. He declined
to discuss the problems before the Government as he entered the morning
conference, and apparently was gloomy. When he returned, after the
luncheon recess, he was smiling and apparently unperturbed by the grave
problems confronting him. After again refusing to discuss details of the
conference, he turned to newspaper correspondents and, smiling, said:
There is one thing I would like to say. I hope the people of the country
will have courage and all kinds of confidence in us, for we are going
to
pull this thing together. This conference is one of a series being
held
throughout the country.
He supplemented this statement after he left the Cabinet meeting,
shortly after 3 o'clock by saying:
I feel 10 years younger than when I entered the conference and discussed
the problems with the Cabinet.
Those at Treasury Conference.
The Treasury Department did not make public the full list of those who
participated in its conference, which was hold in the directors' room
of the
Federal Reserve Board.
Among those present were former Secretary of the Treasury Mills,
Under-Secretary Ballantine, Assistant Secretary of the Treasury Douglas,
Comptroller of the Currency Await; Raymond Moley, adviser to President
Roosevelt, all of the members of the Federal Reserve Board; Jesse H.Jones,
of the Reconstruction Finance Corporation; Attorney General Homer S.
Cummings. Melvin A. Traylor, Chicago banker;George L. Harrison. Governor of the New York Federal Reserve Bank; George W. Davison, Chairman
of the Central Hanover Bank & Trust Co. of New York, author of the
Clearing House certificate scrip plan in the currency panic of 1907; Professor
A. A. Berle, specialist in capital structures at Columbia University; and
J. R. Leavell, Chicago banker.
Others included George W. Norris, Governor of the Philadelphia Federal
Reserve Bank; Joseph W. Wayne Jr., President of the Philadelphia Clearing House and the Philadelphia National Bank; Senator Glass; Arthur F.
Mullen, Democratic National Committeeman from Nebraska and Representative Henry B. Steagall of Alabama, Chairman, of the House Banking
and Currency Committee.
The first morning session of the Federal officials and bankers lasted until
1:30 o'clock. Those present hurried out of the Treasury Building to a
near-by hotel, whore they partook of a hasty luncheon and returned to their
deliberations at 2 o'clock.
Half an hour later. Secretary Woodin attended the meeting of the
Cabinet called by President Roosevelt to go over the tentative program
suggested by the bankers and Treasury officials. During the Cabinet
meeting, the bankers continued their deliberations.
Mr. Woodin returned about 4 o'clock and announced that the President
had decided upon a special session of Congress for next Thursday.
The White House then Issued the proclamation summoning Congress in
extraordinary session and this was followed by the President's statement
to the effect that he would present an emergency program to relieve the
banking crisis. The meeting at the Treasury adjourned at 5 o'clock until
8:30 o'clock in the evening,
While the Treasury conference was in progress, with all entrances to the
department building carefully guarded to prevent intrusion, the White
House was the scene of great activity.
Members of Congress and sightseers thronged the executive offices and
anxiously waited developments. Senator Glass and Representative Steagall, who will deal with the banking emergency program in Congress. conferred with the President, together with Senator Robinson, leader of the
Senate majority, and Senators Johnson of California and Byrnes of South
Carolina
The President's proclamation follows:
1665
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA.
A Proclamation
Whereas there have been heavy and unwarranted withdrawals of gold
and currency from our banking institutions for the purpose of hoarding; and
Whereas continuous and increasingly extensive speculative activity
abroad in foreign exchange has resulted in severe drains on the nation's
stocks of gold; and
Whereas these conditions have created a national emergency: and
Whereas it is in the best interests of all bank depositors that a period of
respite be provided with a view to preventing further hoarding of coin.
bullion or currency or speculation in foreign exchange and permitting the
application of appropriate measures to protect the interests of our people; and
Whereas it Is provided in Section 5 (b) of the Act of Oct. 6 1917 (40 stet.
L. 411) as amended, "that the President may investigate, regulate or
prohibit, under such rules and regulations as he may prescribe, by means of
licenses or otherwise, any transactions in foreign exchange and the export.
hoarding, melting or earmarkings of gold or silver coin or bullion or currency
. . ." and
Whereas it is provided in Section 16 of the said Act "that whoever shall
wilfully violate any of the provisions of this Act or of any license, rule or
regulation issued thereunder, and whoever shall wilfully violate, neglect or
refuse to comply with any order of the President issued in compliance with
the provisions of this Act, shall. upon conviction, be fined not more than
510,000 or, if a natural person, imprisoned for not more than ten years or
..,;
both
Now, Therefore, I, Franklin D. Roosevelt, President of the United States of
America, in view of such national emergeicy and by virtue of the authority
vested in me by said Act and in order to prevent the export, hoarding or
earmarking of gold or silver coin or bullion or currency, do hereby proclaim,
order, direct and declare that from Monday, the sixth day of March, to
Thursday, the ninth day of March, nineteen hundred and thirty-three, both
dates inclusive, there shall be maintained and observed by all banking
institutions and all branches thereoflocated in the United States of America,
including the Territories and Insular Possessions, a bank holiday, and that
during said period all banking transactions shall be suspended.
During such holiday, excepting as hereinafter provided, no such banking
Institution or branch shall pay out, export, earmark or permit the withdrawal or transfer in any manner or by any device whatsoever of any gold
or silver coin or bullion or currency or take any other action which might
facilitate the hoarding thereof; nor shall any such banking institution or
branch pay out deposits, make loans or discounts, deal in foreign exchange.
transfer credits from the United States to any place abroad, or transact any
other banking business whatsoever.
During such holiday, the Secretary of the Treasury, with the approval
of the President and under such regulations as he may prescribe, is authorized
and empowered (a) to permit any or all of such banking institutions
to
perform any or all of the usual banking functions, (b) to direct, require or
permit the issuance of clearing house certificates, or other evidences
of
claims of assets of banking institutions, and (c) to authorize and direct the
creation in such banking institutions of special trust accounts for the receipt
of new deposits which shall be subject to withdrawal on demand without
any restriction or limitation and shall be kept separately in cash or on
deposit in Federal Reserve banks or invested in obligations of the United
States.
As used in this order the term "banking institutions" shall include all
Federal Reserve banks, national banking associations, banks, trust companies, savings banks, building and loan associations, credit unions, or
other corporations, partnerships, associations or persons, engaged in the
business of receiving deposits, making loans. discounting business paper, or
transacting any other form of banking business.
/n Witness Whereof I have hereunto set my hand and caused the seal of
the United States to be affixed.
Done in the City of Washington this 6th day of March, 1 a. m., in the
year of Our Lord One Thousand Nine Hundred and Thirty-three, and of the
Independence of the United States the one hundred and fifty-seventh.
(SEAL)
By the President:
CORDELL HULL,
Secretary of State.
FRANKLIN D. ROOSEVELT.
As we indicate above, the bank holiday was extended by
President Roosevelt in a proclamation issued on March 9,
a dispatch from Washington on that date to the New York
"Times" stating "this deferment of the reopening of banks
already rated as sound by tests which National bank examiners have been making during the last two days was made
necessary by the fact that there was no time before to-morrow morning (Mardi 10) to issue the necesary regulations.'
,
President Roosevelt's proclamation of March 9 continuing
the bank holiday and the gold embargo "in full force and
effect until further proclamation by the President" follows
:
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A Proclamation.
Whereas, on March 6 1933, I, Franklin D. Roosevelt, President of the
United States of America, by proclamation declared the existence
of a
National emergency and proclaimed a bank holiday extending from
Monday. the 6th day of March, to Thursday, the 9th day of
March. 1933.
both days inclusive, in order to prevent the export,
hoarding or earmarking
of gold or silver coin. or bullion or currency, or speculation
in foreign exchange; and
Whereas, under the Act of March 9 1933, all proclamations
heretofore
or hereafter issued by the President pursuant to the authority
conferred
by Section 5 (b) of the Act of Oct. 6 1917, as amended,
are approved and
confirmed; and
Whereas, said National emergency still continues, and it is necessary
to take further measures extending beyond March 9 1933 in
order to accomplish such purposes:
Now, therefore, I, Franklin D. Roosevelt, President of the United
States
of America, in view of such continuing National emergency
and by virtue
of the authority vested in me by Section 5 (b) of the Act
of Oct. 6 1917
(40 Stat. L.. 411), as amended by the Act of March 9
1933, do hereby
proclaim, order, direct and declare that all the terms and
provisions of
said proclamation of March 6 1933 and the regulations
and orders issued
thereunder, are hereby continued in full force and
effect until further
proclamation by the President.
In witness whereof I have hereunto set my
hand and have caused the
seal of the United States to be affixed.
Done in the District of Columbia, this 9th day
of March, in the year of
1666
Financial Chronicle
Our Lord one thousand nine hundred and thirty-three, and of the independence of the United States the one hundred and fifty-seventh.
[Seal.]
FRANKLIN D. ROOSEVELT.
By the President:
CORDELL HULL. Secretary of State.
Proclamation of President Roosevelt Calling Extra
Session of Congress March 9 to Receive Program
to Meet Monetary Emergency.
President Franklin D. Roosevelt, who took the oath of
office on March 4, issued a proclamation the following day
(March 5) calling upon Congress to convene in extra session
at noon Thursday, March 9. At the same time President
Roosevelt issued a statement saying:
Anticipating the meeting of Congress on Thursday. I am preparing an
immediate program directed to meet the present monetary emergency.
It is, of course, essential that the first business before the Congress will
be the present banking and financial situation.
In its advices from Washington March 5, the New York
"Times" said:
Week's Work for Congress.
The call for Congress to meet on Thursday was issued with the expectation that it might be as late as Monday a week before the plan of President
Roosevelt could be brought up in Congress for action. Congressional
leaders explained to him to-day that it would take some time, perhaps as
much as two days, for the Senate and House to be organized.
The Senate has come into Democratic control for the first time in 12
years and the House has undergone a change of leadership within the party
itself.
Republican leaders said to-night that they would co-operate in every
way to expedite the reorganization so that Congress could get to work
at once on the remedial legislation. They said that the responsibility for
the program was with the Democrats but that no dilatory tactics would be
countenanced on their side.
President Roosevelt's proclamation follows:
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA.
A Proclamation
Whereas, public interests require that the Congress of the United States
should be convened in extra session at 12 o'clock noon, on the 9th day of
. March 1933, to receive such communication as may be made by the Executive;
Now, therefore, I, Franklin D. Roosevelt. President of the United States
of America, do hereby proclaim and declare that an extraordinary occasion
requires the Congress of the United States to convene in extra session at the
Capitol in the city of Washington on the 9th day of March 1933. at 12
o'clock. noon, of which all persons who shall at that time be entitled to act
as members thereof are hereby required to take notice.
In witness whereof. I have hereunto set my hand and caused to be affixed
the Great Seal of the United States.
Done at the city of Washington this 5th day of March, in the year of our
Lord one thousand nine hundred and thirty-three, and of the independence
of the United States the one hundred and fifty-seventh.
FRANKLIN D. ROOSEVELT.
By the President:
CORDELL HULL, Secretary of State.
Secretary of Treasury Woodin Declares United States
Is Definitely on Gold Standard—Statement Incident to President Roosevelt's Proclamation Barring
Gold Exports.
Following the issuance of President Roosevelt's proclamation (given elsewhere in this issue of our paper) barring exports of gold, the new Secretary of the Treasury, William
H. Woodin, declared emphatically on March 5 that the
United States had not gone off the gold standard on account
of the proclamation. According to a Washington dispatch
March 5 to the New York "Times," he was supported in
this view by other high officials of the Administration, both
in the executive and legislative branches,among them Senator
Bey Pittman, Chairman of the Committee on Foreign Relations. From the dispatch we also take the following:
Secretary Woodin said:
"It is ridiculous and misleading to say that we have gone off the gold
standard, any more than we have gone off the currency standard.
IlliA
"We are definitely on the gold standard. Gold merely cannot be obtained
for several days. In other words, gold payments have been suspended for
that period."
He added:
"We are on the bottom now. We are not going any lower. The people
have lots of courage and if they only have confidence, and will do what our
great leader at the White House says, we will get out of these troubles
very soon."
Mr. Woodin explained that the proclamation would prevent further
hoarding of gold, since no gold will be paid out of the Treasury until the
Secretary deems it advisable.
Working on Certificate Plan.
As to the Clearing House certificates, Mr. Woodin and Under-Secretary
Arthur A. Ballantine said that several plans had been suggested from
various parts of the country, but whether a uniform plan would be adopted
had not yet been decided. These certificates have been used in several
centres already. Mr. Woodin disclosed that the Treasury had been working
on a plan for some time
Under the proclamation,the Secretary of the Treasury could permit banks
to carry on their normal functions.
The export and other movements of gold were licensed, rather than
embargoed. The Secretary of the Treasury, with Presidential approval,
could act consistently with the existing situation.
There was no probability of the export ofgold for the four-day period, but,
as certain emergencies might develop which would make gold movements
advisable, the authority for licensing of exports was put into the pro-
clamation
March 11 1933
The Secretary said that a policy under the proclamation would be worked
out to-morrow, with regulations for putting it into effect.
Asked if gold certificates could be redeemed at the Treasury during
the four-day period. Mr. Woodin replied:
"The Treasury will be closed."
Mr. Woodin said that he had asked President Roosevelt whether the job
always had such long hours. He added that the President had told him to
go home and go to bed
"Coming Through," Mills Says.
Former Secretary Ogden L. Mills, who with Under-Secretary Ballantine
and Federal Reserve Governor Eugene Meyer, attended the night conference, declared that the country was coming through its economic troubles.
"We are going to get out," Mr. Mills said.
Under-Secretary Ballantine also declared that there has been no abandonment of the gold standard It was pointed out that there would be no depredation of the dollar.
Senator Pittman scorned the idea that President Roosevelt had put the
country off the gold standard.
"The action the President took to-night is a protection to the gold
standard," he said. "I think it indicates the steps he is going to take to
relieve this whole situation, and I am very much gratified."
Effect of Executive Action.
A noted banking authority said to-night that the effect of the action
taken by the President would be as follows:
"It will bring about a redepositing of gold which has been drawn out in
recent days and hoarded. The creation of trust accounts under the operation
of the proclamation will tend to bring the gold out of hoarding.
"Some persons may not redeposit their gold, in which case they will be
forced to bury it, because it is of utterly no use to them.
"The announcement of the bank moratorium will be a big shock abroad,
but after this shock has been absorbed business will go on as usual.
"A person with a bank account will be unable to draw currency checks
on it, but this will not prevent him from engaging in his ordinary transactions,for a supplementary medium of exchange is set up.
"In other words, if you wish to purchase something and the seller is
willing to take scrip the transaction is consummated. The scrip, or Clearing
House certificate, reestablishes perfectly legitimate credit. It means that
if you have credit or a deposit in the bank this scrip certifies the credit.
"It will be impossible to send money out of the country, for that would
send foreign exchange up materially."
Gold Drain Ended by Federal Reserve Bank of New
York—Defensive Step Forced by Mechanical Inability to Meet Heavy Withdrawals—Circulation Up
Sharply—New York Assay Office Open.
The Federal Reserve Bank of New York, acquiescing in
the two-day bank holiday proclaimed by Governor Lehman,
closed its gold-paying windows on Saturday, March 4, and
suspended banking transactions.
It was stated in the New York "Times" of March 5 that
in recommending to the Governor a banking holiday and in
itself observing that holiday despite its quasi-Governmental
nature, the Reserve Bank was adopting defensive measures
against a mechanical breakdown of its note-issuing facilities
caused by the attempt of the public to convert into currency
a large part of the entire $42,000,000,000 of bank deposits
in the country. The item in the "Times" of March 5
continued:
The burden of the banking crisis had fallen heavily upon the New York
money market,and the events of Thursday (March 2) and Friday (March 3)
had led bankers to fear the New York banks might be called upon to Pay
outin gold and cash a large part of their $7,000,000,000 of deposits. Moreover, foreign markets had become disturbed by the course of events, and
there was reason to believe that nearly all of the $700,000,000 of foreign
balances remaining in this market might be converted into gold if the
opportunity was presented yesterday.
Assay Office Stays Open.
While the Federal Reserve took these measures of self-protection, the
Assay Office remained open for the payment of gold. Only gold bullion
could be obtained there, however, in redemption of United States gold
certificates, which are in reality warehouse receipts for gold. Since gold
certificates have almost disappeared from circulation in the last year and a
half, having been retired by the Federal Reserve banks to bolster up their
own gold holdings, and since the gold bars sold by the Assay Office cost
$5,000 each, business was not very heavy. No figures were available,
however.
Unofficial estimates in Wall Street placed the expansion of money in
circulation on Thursday and Friday at about $700,000,000, or the equal
of the record-breaking rise for the entire week ended last Wednesday,
disclosure of which in the last Federal Reserve statement helped to bring
the banking crisis to a head. This would carry total money in circulation to
about $7,500,000,000. Of the increase, it was thought that about $500,000.000 had been supplied by the issuance of Federal Reserve notes, while
through withdrawals of gold for foreign and domestic account the gold
reserves of the system were estimated to have been reduced at least $200.000,000 in the last two full business days of the week.
On the basis of these calculations banking experts figured that the Federal
Reserve had left on Friday night (March 3). roughly, $350.000,000 of
excess gold reserves, against a $766,000,000 excess on Wednesday night
(March 1). If the belief of bankers were correct that nearly all foreign
balances in this market might be converted into gold yesterday if the
chance were given, this remaining excess of gold reserves could have been
depleted.
No Dollar Dealings Anywhere.
It was in recognition of this situation that in London and Paris and
most of the other money markets of the world, foreign exchange dealings
In the dollar were prevented. The complete absence of any quotations,
even of a "bootleg" nature, testified to the strenuous efforts of foreign
Central banks to avoid the effects of wild fluctuations in dollar exchange.
Under the circumstances, foreign exchange experts said, any dealings in the
dollar at all would have produced incalculable swings. Even the foreign
branches of American banks, although they kept open, refused to cash
travelers' checks:or letters of credit or to quote any rate on the dollar.
Volume 136
But although the Federal Reserve has been driven into a defensive position by the nation-wide attempt to convert bank deposits into cash,
banking authorities emphasized the fact that the current difficulties, so
far as the central banking system is concerned, are largely mechanical.
Bank money, that is, deposits in banks subject to transfer by check, was
never intended to be convertible into cash in its entirety, bankers pointed
out. The attempt to do so was manifestly impossible and had to be stopped.
The Federal Reserve, despite its losses, still holds more gold than any
other Central bank except the Bank of France ever has held. As of last
Wednesday (March 1), it had gold reserves of $2,892,083,000 while the
total of all monetary gold in the country, including holdings of the Federal
Reserve banks, the Treasury and gold in circulation was $4,344,000,000.
Since Wednesday (March 1) the system has lost additional gold through
foreign withdrawals and domestic hoarding, but yesterday (March 4) a
portion of the gold lost on Friday (March 3) was mysteriously restored to
the System.
Some Earmarkings Ca'nceled.
On Friday (March 3) the Federal Reserve Bank of New York had announced a loss of $109,700,000 of gold through earmarking for foreign
account. Yesterday (March 4), although the Bank was closed for such
transaction, it was announced that $39.754.500 gold had been released
from earmarking. The understanding of the financial district was that this
gain represented the return late on Friday (March 3) of part of the gold
earmarked earlier in the day, but why and how it had been returned could
not be explained. One suggestion was that through some arrangement.
involving possibly certain member banks as well as the Reserve Bank. the
Bank of England, or whatever foreign Central bank had earmarked the
gold, was reimbursed in its own currency for the gold.
Directors of the Federal Reserve Bank held no formal meeting yesterday,
but several of them conferred briefly at the Bank. It was said that no conferences were scheduled and that no announcements were expected over the
week-end. Whether the Bank would resume its ordinary operations on
Tuesday when the bank holiday ends was not disclosed.
President Roosevelt's Message to Congress Asking
Immediate Enactment of Emergency Banking
Legislation.
President Roosevelt who on March 5 issued a proclamation
calling Congress into extra session on March 9 in a message
i
addressed to the new session on that date asked for "the
immediate enactment of legislation giving to the executive
branch of the government control over banks for the protection of depositors; authority forthwith to open such
banks as have already been ascertained to be in sound
condition, and other such banks as rapidly as possible; and
authority to reorganize and reopen such banks as may be
found to require reorganization to put them on a sound
basis." President Roosevelt in his message of March 9
also asked for "amendments to the Federal Reserve Act to
provide for such additional currency, adequately secured, as
It may become necessary to issue to meet all demands for
currency and at the same time to achieve this end without
increasing the unsecured indebtedness of the Government
of the United States." Action on the legislation sought by
President Roosevelt was hastened by Congress and the
emergency measure, following its adoption by Congress, on
March 9 was signed by President Roosevelt at 8:36 P. M.
March 9. Reference to the newly enacted legislation appears
elsewhere in this issue of our paper, and we likewise give
under another head, the full text of the new Act. Below is
President Roosevelt's message to Congress on March 9:
To the Senate and House of Representatives:
On March 3 banking operations in the United States ceased. To review
at this time the causes of this failure of our banking system is unnecessary.
Suffice it to say that the Government has been compelled to step in for
the protection of depositors and the business of the Nation.
Our first task is to reopen all sound banks. This is an essential preliminary to subsequent legislation directed against speculation with the
funds of depositors and other violations of positions of trust.
In order that the first objective—the opening of banks for the resumption
of business—may be accomplished, I ask of the Congress the immediate
enactment of legislation giving to the executive branch of the Government
control over banks for the protection of depositors; authority forthwith to
open such banks as have already been ascertained to be in sound condition
and other such banks as rapidly as possible; and authority to reorganize
and reopen such banks as may be found to require reorganization to put
them on a sound basis.
I ask amendments to the Federal Reserve Act to provide for such additional currency, adequately secured, as it may become necessary to issue
to meet all demands for currency and at the same time to achieve this
end without increasing the unsecured indebtedness of the Government
of the United States.
I cannot too strongly urge upon the Congress the clear necessity for
Immediate action. A continuation of the strangulation of banking facilities
is unthinkable. The passage of the proposed legislation will end this condition and I trust within a short space of time will result in a resumption
•
of business activities.
In addition, it is my belief that this legislation will not only lift immediately all unwarranted doubts and suspicions in regards to banks which
are one hundred percent sound but will also mark the beginning of a new
relationship between the banks and the people of this country.
The members of the new Congress will realize. I am confident, the grave
responsibility which lies upon me and upon them.
In the short space of five days it is impossible for us to formulate completed measures to prevent the recurrence of the evils of the past. This
does not and should not, however, justify any delay in accomplishing
this first step.
At an early moment I shall request of the Congress two other measures
which I regard as of immediate urgency. With action taken thereon we
can proceed to the consideration of a rounded program of national restoration.
FRANKLIN D. ROOSEVELT.
The White House, March 9 1933.
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Financial Chronicle
Regulations Issued by Secretary of Treasury Woodin
Modifying Bank Holiday so as to Permit Banks to
Exercise Certain-Functions—Provision for Creation
of Special Trust Accounts for the Receipt of New
Deposits. ;
On March 6 Secretary of the Treasury Woodin annoline72
seven_ regulations whereby banks, closed by President
feur-day bank holcd3a
Roosevelt's proclamation declaring a—
from March 6 to March 9, would be permitted to open to
operate on a restricted basis. Under one of these regulations,
it was noted in the New York "Journal of Commerce,"
provision is made for the creation of special trust accounts
for the receipt of new deposits, which shall be subject to
withdrawal on demand without any restrictions or limitations. From the same item we quote:
,taal. MEOW
.
0 11.Ir •••=1,
••••••—•0
These banks must keep the deposits so made separately in cash,on deposit
at the Federal Reserve banks, or invested in obligations of the United
_States. Under these restrictions deposits so made are 100% liquid. The
regulations apply to any banking institution which was lawfully engaged
in the business of receiving deposits prior to March 6.
The regulations also provide that deposits heretofore received by any
banking institution pursuant to agreement or legislative authority providing for segreation and for repayment without restriction may be paid in
full on demand. This applied to the Michigan and Ohio banking situations.
The regulations as announced March 6 by Secretary
Woodin follow:
Any banking institution may handle and collect drafts or other documents
in connection with the shipment, transportation or delivery of food or feed
products, may pay out or permit the withdrawal ofsuch amounts of currency
as shall be necessary in the judgment of such banking institution in connection with such shipment, transportation or delivery of rood or feed
products and may perform such other banking functions as may be essential
to the shipment, transportation or delivery of food or feed products, provided, however, that no banking institution shall pay out or permit the
withdrawal of any gold or gold certificates.
All banking institutions may allow their customers free access to the
safety deposit boxes and safes rented to such customers.
All banking institutions may upon request return intact without restriction all cash, checks, other items delivered for deposit or collection
which were received after the last closing of business hours and have not been
entered upon the books of such banking institution.
All banking institutions may continue, in accordance with usual practice,
to cash checks drawn on the Treasurer of the United States, provided that
no gold or gold certificates shall be paid out.
Any banking institution may accept payments in cash or any other form
acceptable to it on account or in settlement of obligations payable at or to
such institution.
All Federal Reserve banks and all other banking institutions may make
change by the exchange of currency and (or) coin of various denominations
for an exactly equal amount ofcurrency and (or)coin of other denominations,
but no gold or gold certificates shall be paid out in making change.
Deposits heretofore received by any banking institution pursuant to
agreement or legislative authority providing for segregation and for repayment without restriction may be paid on demand Any banking institution which was lawfully engaged in the business of receiving deposits
prior to March 6 1933, may create special trust accounts for the receipt of
new deposits, which shall be subject to withdrawal on demand without
any restriction or limitation, and shall be kept separately in cash or on
deposit in Federal Reserve Banks or invested in obligations of the United
States. Federal Reserve Banks may open special accounts on their books
for their member banks, and temporarily for non-member banks, and
may receive in such special accounts the proceeds of new deposits received
by such banking institutions.
In making deposits with the Federal Reserve Bank pursuant to this
regulation, the depositing bank shall in the case of each deposit indicate
to the Federal Reserve Bank by symbol or otherwise that the funds so
deposited represent new deposits made under this regulation. Upon
receipt of such deposits such Federal Reserve Bank shall credit the same
in the special account of the depositing bank herein provided for and shall
hold the same solely for repayment to such bank.
Federal Reserve banks shall permit the withdrawal of any part or all of
such new deposits by the depositing bank without restriction provided
that the depositing bank shall in each order or request for withdrawal
indicate to the Federal Reserve Bank by symbol or otherwise that such
withdrawal is to be made from such special account, provided, however.
that no banking institution shall pay out or permit the withdrawal of any
gold or gold certificates.
--— It was noted in Associated Press dispatches from Washing—:as
ton, Mar f7that under the regulations issued by Secretag
Woodin, banks are permitted to exercise the following
functions:
(1) Handle drafts or other documents in connection with shipment.
transportation or delivery of food or feed products.
(2) Accept payments on account of or in settlement of obligations due it
by its customers.
(3) Make change.
(4) Allow customers free access to safety deposit boxes.
(5) Cash checks drawn on the Treasurer of the United States, on the
condition that no gold or gold certificates be paid out.
(6) Return without restriction all cash, checks and other items delivered
for deposit or collection after the last closing of business hours and which
have not been entered on the bank's books.
(7) Pay out without restriction new deposits made in special "trust
fund accounts," on the condition that no gold shall be paid out.
(8) Complete settlement for checks charged to accounts on or before
March 4, provided the completion does not involve payment of money
or currency.
(9) Return to customers documents and securities held for safekeeping.
(10) Exercise usual banking functions to provide for absolutely necessary
needs of communities for food, medicine, relief of distress, pay rolls and
expenditures to maintain employment.
(11) Deposit collateral in the United States to secure advances to
branches in foreign countries.
(12) Clearing House Associations conditionally authorized to issue
certificates against sound assets of banking institutions, but not before
Friday. Authorization revokable at discretion of Secretary of the Treasury.
1668
Financial Chronicle
(13) Banks authorized to continue to act as trustee, executor, administrator and other estates functions, provided no currency or coin is paid out.
The following circular bearing on the Treasury regulations
was issued March 7 by the New York Federal Reserve Bank:
FEDERAL RESERVE BANK OF NEW YORK.
[Circular No. 1,167—March 7 1933.1
Regulations Issued by the Secretary of the Treasury Under the President's
Proclamation Declaring a Bank Holiday.
To all Banking Institutions in the
Second Federal Reserve District:
For your information, and supplementing our Circular No. 1.166, dated
March 6 1933, we quote below the text of regulations which the Federal
Reserve Board has advised us have been issued by the Secretary of the
Treasury under the authority conferred upon him by the President's
proclamation declaring a bank holiday:
"Where settlement for checks charged by drawee institutions to the
drawers' accounts on its books on or before March 4 1933 is incomplete,
settlement may be completed where such settlement does not involve the
payment of money or currency."
"Any bank having branch in a foreign country may deposit collateral
in the United States to secure advances to such branch in a foreign country,
provided such transaction does not involve any transfer of credit from the
United States to a foreign country and any bank having branch in an insular
possession of United States may deposit United States Government securities or other collateral for a similar purpose when under President's
proclamation advances of local currency in the Insular possession may
lawfully be made."
"Any banking institution may deliver to the person entitled thereto
properly identified documents and securities held by such institution for
safekeeping."
"Any National or State banking institution may exercise its usual banking functions to such extent as its situation shall permit and as shall be
absolutely necessary to meet the needs of its community for food, medicine,
other necessities of life, for the relief of distress, for the payment of usual
salaries and wages, for necessary current expenditures for the purpose of
maintaining employment and for other similar essential purposes; provided,
however, that (1) every precaution shall be taken to prevent hoarding or
the unnecessary withdrawal of currency; (2) no State banking institution
shall engage in any transaction under this regulation which is in violation of
State or Federal law or of any regulation issued thereunder;(3) no National
banking association shall engage in any transaction under this section which
is in violation of any Federal law, or of any order or regulation issued by
the Comptroller of the Currency; and (4) no gold or gold certificates shall
be paid out. Each banking institution and its directors and officers will
be held strictly accountable for faithful compliance with the spirit and purpose as well as the letter of this regulation."
"Any banking institution lawfully engaged in the business of acting as
trustee, executor, administrator, registrar of stocks and bonds, transfer
agent, guardian of estates, assignee, receiver, committee of estates of
lunatics, or in any other fiduciary capacity may continue to transact such
business in the normal and usual manner; provided that in the conduct of
said business, except as may be permitted by other regulations of the
Secretary of the Treasury, such banking institution shall not pay out or
permit the withdrawal of coin or currency nor withdraw any trust or fiduciary funds on deposit with any other department of the bank."
"Clearing house associations and other associations organized to provide
an adequately secured medium of temporary exchange, are hereby permitted to issue certificates against sound assets of banking institutions,
such certificates to be deliverable by each institution to its creditors and depositors on a pro rata basis, provided, however, that no such certificates
shall be issued before Friday, March 10 1933, without the consent of the
Secretary of the Treasury addressed to the Clearing House or other association proposing to issue such certificates, and further provided that this
permission may be revoked in the event that a National plan to meet the
existing emergency is proposed by the Secretary of the Treasury if in his
opinion the success of such plan would be inconsistent with the operation
of the certificate plan."
"Each Federal Reserve Bank may (1) make available to its member
banks which, in the judgment of the Federal Reserve Bank, are complying
strictly with the spirit and purpose as well as the letter of the regulations
issued by the Secretary of the Treasury pursuant to the President's Proclamation declaring a bank holiday, such limited amounts of coin and (or)
currency (other than gold or gold certificates) as shall be absolutely necessary in order to enable such member banks to exercise the restricted functions permitted by such regulations, (2) extend to each such member
bank such limited amounts of discounts, advancements, and accommodations as shall be absolutely necessary for the exercise of such restricted
functions, and (3) make transfers of credit on its books for such restricted
purposes between the accounts of such member banks and (or) non-member
clearing banks which, in the judgment of the Federal Reserve Bank. are
complying strictly with the spirit and purpose as well as the letter of such
regulations; provided, however, that before granting any such discounts,
advancements or accommodations or making such limited payments of
coin and (or) currency, the Federal Reserve Bank shall first require the
member bank, (a) to inform the Federal Reserve Bank of the amounts of
coin and currency which it has on hand.(b) to imform the Feleral Reserve
Bank of the circumstances giving rise to the need for additional coin and
(or) currency, and (c) to deliver to the Federal Reserve Bank in exchange
for other forms of coin and (or) currency or for credit on its books all gold
and gold certificates held by such member bank in its own right."
"Federal Reserve banks, in their discretion, are authorized to handle
checks and collection items arising out of the restricted bank operations
permitted under the regulations of the Secretary of the Treasury when it
can reasonably be anticipated that funds satisfactory to the Federal
Reserve Bank can be provided for the payment of such checks and collection Items; provided, however, that no gold or gold certificates shall be
paid out by such Federal Reserve banks."
The Secretary of the Treasury has issued the following announcement
and has released the same for publication:
"In order to facilitate the prompt dissemination of information regarding
and interpretation of regulations issued by the Secretary of the Treasury
pursuant to the President's Proclamation, dated March 6 1933, declaring
a bank holiday. it is requested that all inquiries for information regarding
and interpretation of any such regulations coming from banks, banking
institutions and individuals, be made direct to the Federal Reserve Bank
in their district. Unless such requests are covered by interpretations
previously issued by the Secretary of the Treasury, the Federal Reserve
banks will secure such interpretations from the Secretary of the Treasury.
All requests for any special permission or consent required by the regulations should be made in accordance with such regulations."
Note.—Interpretation of Regulation Six included in our Circular
No. 1166, dated March 6 1933.
A telegram received to-day from the Secretary of the Treasury reads as
follows:
March 11 1933
"You are authorized to inform all banking institutions and others concerned that the term 'food or feed products in regulation six, under the
President's Proclamation, promulgated March 6, may be Interpreted to
Include livestock on the way to slaughter."
GEORGE L. HARRISON, Governor.
Circular 1166, issued March 6 by the New York Federal
Reserve Bank, follows:
FEDERAL RESERVE BANK OF NEW YORK.
[Circular No. 1.166—March 6 1933.1
Regulations Issued by the Secretary of the Treasury Under the President's
Proclamation Declaring a Bank Holiday.
To all Banking Institutions in the
Second Federal Reserve District:
For your information we quote below the text of regulations which the
Federal Reserve Board has advised us have been issued by the Secretary
of the Treasury under the authority conferred upon him by the President's
proclamation declaring a bank holiday:
"Secretary of Treasury has authorized all Federal Reserve banks and all
other banking institutions to make change by the exchange of currency
and (or) coin of various denominations for an exactly equal amount of
currency and (or) coin of other denominations but no gold or gold certificates shall be paid out in making change."
"All banking institutions may allow their customers free access to the
safety deposit boxes and safes rented to such customers."
"All banking institutions may upon request return intact and without
restriction all cash, checks, and other items delivered for deposit or collection which were received after the last closing of business hours and have
not been entered on the books of such banking institution."
"All banking institutions may continue, in accordance with usual practice, to cash checks drawn on the Treasurer of the United States, provided
that no gold or gold certificates shall be paid out."
"Any banking institution may accept payments in cash or any other
form acceptable to it on account or in settlement of obligations payable at
or to such institution."
"Any banking institution may handle and collect drafts or other documents in connection with the shipment, transportation or delivery of
food or feed products, may pay out or permit the withdrawal of such
amounts of currency as shall be necessary in the judgment of such banking
institution in connection with such shipment, transportation or delivery
of food or feed products, and may perform such other banking functions
as may be essential to the shipment, transportation or delivery of food or
feed products, provided, however, that no banking institution shall pay
out or permit the withdrawal of any gold or gold certificates."
"Deposits heretofore received by any banking institution pursuant to
agreement or legislative authority providing for segregation and for repayment without restriction may be paid on demand. Any banking Institution which was lawfully engaged in the business of receiving deposits
prior to March 6 1933 may create special trust accounts for the receipt of
new deposits which shall be subject to withdrawal on demand without any
restriction or limitation and shall be kept separately in cash or on deposit
in Federal Reserve banks or invested in obligations of the United States,
Federal Reserve banks may open special accounts on their books for their
member banks and temporarily for non-member banks and may receive
in such special accounts the proceeds of new deposits received by such
banking institutions. In making deposits with the Federal Reserve Bank
pursuant to this regulation the depositing bank shall in the case of each
deposit indicate to the Federal Reserve Bank by symbol or otherwise
that the funds so deposited represent new deposits made under this regulation. Upon receipt ofsuch deposits such Federal Reserve Bank shall credit
the same in the special account of the depositing bank herein provided for
and shall hold the same solely for the repayment to such bank. Federal
Reserve banks shall permit the withdrawal of any part or all of such new
deposits by the depositing bank without restriction, provided that the depositing bank shall in such order or request for withdrawal indicate to the
Federal Reserve Bank by symbol or otherwise that such withdrawal is to
be made from such special account, provided, however, that no banking
institution shall pay out or permit the withdrawal of any gold or gold certificates." . •
GEORGE L. HARRISON, Goya nor.
Proclamation of Gov. Lehman of New York Declaring
Two-Day Bank Holiday, March 4-6—Action Followed Conference with Clearing House and Federal Reserve Bank Officials—Clearing House Statement—Holiday Subsequently Extended—Later
Announcement Authorizing Banks to Perform
Business as Prescribed by Secretary of State
Woodin.
Gov. Herbert H. Lehman of New York, who had up to a
late hour on Friday Mar. 3 taken the stand that no bank
holiday would be resorted to in this State, found it necessary
in the early morning hours of Saturday Mar. 4 to put into
effect a two-day bank holiday embracing Saturday Mur.4 and
Monday Mar, 6. This action was taken following an allnight conference (Friday Mar. 3) with officials of the New
York Clearing House and members of the New York Federal
Reserve Bank. In the New York "Times" of Mar. 4 it
was stated:
Savings Banks Act kirst.
Prior to the announcement by Governor Lehman, movement already
was under way in savings banks circles to invoke the sixty-day clause relating to withdrawals of savings deposits. A meeting was scheduled last
night by savings bank heads of this city to take place at 9 o-clock this
morning.
The first savings bank of the city to invoke the sixty-day clause was thu
Dollar Savings Bank at Third Avenue and 149th Street, the Bronx, and at
its branch at Fordham Road and Grand Concourse. The bank, however,
which is open every Friday evening from 7 to 9 o'clock, permitted limited
withdrawals with notice, and Howell T. Manson, President, said depositors
received the action favorably.
According to information available last night, application of the withdrawal clause which gives a savings bank the right to demand sixty days'
written notice prior to withdrawals, may vary according to the judgment
of an Individual bank. The Dollar Savings Bank announced that it would
Volume 136
Financial Chronicle
permit weekly withdrawals up to a maximum of $25 to each depositor
without sixty days' notice.
The two-day holiday was proclaimed as follows by Gov.
Lehman at 4:20 a. m. Mar. 4:
Until early this morning it was my hope that it would not be necessary
to interrupt the continuous operation of the banking system of New York
State. The spread of hysteria and the restrictions imposed upon the
banking facilities of the country through measures adopted in so many
States have at last placed upon the New York banks a burden so great that
it has finally rendered drastic action imperative here.
Therefore, at a meeting late this (Friday) evening, the Clearing House
Committee of the New York Clearing House, with the advice and recommendation of the Federal Reserve Bank of New York, has asked me to
proclaim a banking holiday lasting until the close of business Monday.
March 6.
I make this proclamation with complete conviction that the best interests
of the people of the State are being served thereby. This is a time for
coolness and leadership. The people of this State and of the whole nation
have shown a splendid spirit to date in meeting all the trying problems of
the depression. I am confident that this spirit will be maintained.
The interval which these holidays afford should give responsible officials
the necessary opportunity to consider the situation calmly and to prepare.
the way for an adjustment of our difficulties.
Now, therefore, I, Herbert H. Lehman. Governor of the State of New
York, do hereby proclaim and set apart Saturday, March 4. and Monday.
March 6, as holidays on which all banking institutions will be closed.
Clearing House Statement.
The following statement by the Clearing House Committee
was issued at the same time:
The request of the Clearing House Committee to the Governor is based
on the continued and increasing withdrawals of currency and gold from
the banks of the country.
The unthinking attempt of the public to convert over $40,000.000.000
of deposits into currency at one time is on its face impossible.
While the condition of the Clearing House banks in New York is such
that they could, through facilities of the Federal Reserve Bank, pay on
demand every dollar of their deposits, the above limitations and such tremendous and increasing withdrawals through the country as a whole, and
upon a rapidly increasing scale, render imperative a halt to enable the
proper authorities to consider and adopt remedies to meet this situation.
not for New York primarily, but for the nation as a whole.
The members of the Clearing House Committee are: George W.Davison,
Chairman; Herbert B. Howell, William C. Potter, Gordon L. Rentschler
and Percy H. Johnston.
In its issue of Mar. 4 the "Times" said:
Directors of the Federal Reserve Bank of New York were in session
during the greater part of the day yesterday at the bank, where they were
In constant communication with the Federal Reserve Board in Washington
and with the Chicago officials. After the meeting here at the Reserve
Bank, leading bankers went to the home of Governor Lehman, from which
the official announcement was made at 4:40 this morning.
This action on the part of New York and Illinois followed similar action
in the last twenty-four hours by four other states, Missouri, New Mexico
and Wisconsin, increasing the total number of states with banking holidays
to 31.
Governor Lehman had intended to leave late last night for Washington
to witness the inauguration to-day of Franklin D. Roosevelt as President.
At 11 o'clock last night, however, the Governor's secretary, Joseph Canavan disclosed that this plan had been abandoned.
From the Mar. 5 issue of the "Times" we take the following:
The Governor had had little sleep during Friday night and Saturday
morning. He was busy conferring with hankers and the Clearing
House
Committee through most of the night which led up to the proclamation
dosing the banks.
The proclamation was issued early in the morinng. It followed conferences which were attended by George L. Harrison, Governor of the
Federal Reserve Bank of New York; Thomas W. Lamont of J. P. Morgan
& Co.; James II. Perkins, Chairman of the Board of the National City
Bank: Gordon S. Rentschler, President; Superintendent Broderick, Robert
H. Moses, Secretary of State; George W. Davison, Herbert P. Howell,
William C. Potter and Percy H. Johnston. The last four are the members
of the Clearing House committee.
On Mar.6,said the New York "Herald Tribune" Governor
Lehman held a conference at his home from 9 until 9:45 p. m.
by a group of savings bank Presidents headed by Henry
Bruere, President of the Bowery Savings Bank. During
this conference the Governor issued his proclamation extending the bank holiday through Thursday. This proclamation follows:
STATE OF NEW YORK—EXECUTIVE CHAMBER
Whereas, a proclamation has been issued by the President of the
United
States declaring a bank holiday to and including March Ninth, One Thousand Nine Hundred and Thirty-three:
Now, Therefore, I, Herbert H. Lehman, Governor of the State of New
York, do hereby declare that the bank holiday heretofore declared by me
in the State of New York is extended ter and including said March Ninth,
One Thousand Nine Hundred and Thirty-three.
In witness whereof. I have hereunto signed my name and affixed the
privy seal of the State at the Capitol in the City of Albany this sixth day
of March, in the year of our Lord, One Thousand Nine Hundred and
Thirty-three.
By the Governor:
HERBERT H. LEHMAN.
Joseph Canavan, Secretary to the Governor.
A further extension of the New York bank holiday was
proclaimed after midnight, March 9, by Gov. Lehman,whose
proclamation of that date issued at the Governor's home in
New York, follows:
State of New York,
Executive Chamber:
Whereas, a proclamation has been issued by the President of the United
States continuing in full force and effect until further proclamation by him
all of the terms and provisions of his proclamation of March 6 and the
egulations and orders issued thereunder:
1669
Now, therefore, I, Herbert H. Lehman, Governor of the State of New
York, do hereby declare that the bank noliday heretofore declared by me
in the State of New York is hereby extended and continued in full force
and effect until further proclamation by the Governor.
Given under my hand at 820 Park Avenue. in the City of New York and
under the privy seal of the state at the capitol in the City of Albany. this
ninth day of March. in the year of our Lord, one thousand nine hundred
thirty-three.
HERBERT H. LEHMAN.
On March 6 Governor Lehman at a morning conference
with newspaper men, made the following statement according to the "Times" of March 7:
In view of the national and international character of the problem.
I am strongly of the opinion that the action taken by President Roosevelt
in declaring a national banking holiday was wise and best fitted to the
circumstances.
In conformity with that declaration. I will, in all probability, formally
extend the banking holiday in this State for the same period.
I am advised that arrangements have been made by the New York
Clearing House for the issuance of Clearing House certificates, which I
am sure will prove very useful for dealing principally with the problem
in New York City.
There remains, of course, the problem of making available to the depositors of other sound banks throughout the State a circulating medium which
will allow the business of the State to continue uninterruptedly.
I already have a plan prepared to do this, which I am submitting to the
Secretary of the Treasury to-day for his approval. When the plan is
approved by the Secretary of the Treasury it will be submitted to the
State Legislature for action.
On Mar. 7 a statement was issued by Governor Lehman
indicating that the yanks of the State would be permitted
to operate in a restricted capacity in accordance with rulings
issued by Secretary of the Treasury Woodin, which we give
elsewhere in our issue to-day.
The "Times" in giving Governor Lehman's statement of
Mar. 7 said:
The Governor issued his statement at his apartment, 820 Park Avenue,
after a two-hour conference with Joseph A. Broderick, State Superintendent
of Banks, and other members of the State Banking Board:
Statement Issued By Lehman.
The statement, including the Board's resolution, follows:
"In order that there may be no misunderstanding in regard to the effect
of the Governor's proclamation and in order to make it clear that it is
the intent of that proclamation in no way to restrict the banks in performing within their discretion such functions as they may have been permitted
to perform under the rulings of the Secretary of the Treasury, attention
is drawn to the following resolution adopted by the Banking Board of the
State of New York at its meeting on Tuesday, March 7, 1933:
"Whereas, for the period of the existing emergency, the Banking Board
of the State of New York is authorized to enact rules and regulations which
shall have the effect of law and without in any way affecting or altering the
proclamation of the Governor of the State of New York declaring a banking holiday through and including March 9, 1933:
"Now, Therefore, be it resolved, that in order to facilitate the transaction of business, the banking institutions of the State of New York be
reminded that the provisions of the regulations issued by the Secretary of
the Treasury under the President's proclamation are permissive and their
use is authorized by the Banking Department of the State of New York.
This includes the payment of currency and (or) scrip for the purposes
and under the conditions set forth in said regulations to the extent that
currency and (or) scrip is available through the Federal Reserve Bank or
otherwise. Payments, if any are made, however, should be as nearly
as reasonably may be on a prorata basis"
"This resolution reaffirms that, under the terms of the holiday declared
by the Governor, the banks in this State are permitted within their discretion to conduct so much business as the regulations of the Secretary
of the Treasury authorize.'
Incident to the relaxation of restrictions the "Times" bad
the following to say in its March 8 issue:
Confusion which existed in banking circles yesterday was ended last
night when the leading New York banks and trust companies decided to
reopen to-day for the limited banking functions ma mitted by the regulations issued yesterday morning by Secretary of the Treasury Woodin.
The banks will be united to-day in furnishing accommodations to finance
the movement of foodstuffs into the city, and in supplying funds for meeting payrolls, cashing pay checks and cashing checks for absolutely necessary purchases ofsuch things as food and medical supplies,and in performing
other functions permitted by the Treasury Department.
Governor Lehman late last night issued a statement authorizing the
banks to perform any business permitted by Secretary Woodin. He also
made public a resolution to the same effect adopted yesterday by the
State Banking Board.
Fears of Bankers Removed.
These actions removed fears held by some bankers that the State banking holiday proclaimed by Mr. Lehman made it legally impossible for them
to perform the functions permitted by the Secretary of the Treasury during
the national banking holiday.
The State Banking Board's resolution specifically gave the banks permission to pay out currency as provided by Mr. Woodin's order, provided
these payments were made "as nearly as reasonably may be" on a pro
rata basis.
The reopening of the banks will be facilitated by a ruling of the Secretary
of the Treasury last night authorizing the Federal Reserve Bank to
make
limited advances to member banks and to pay out to them limited amounts
of coin and currency.
The ruling provided that the member banks report to the Federal Reserve
their present holdings of coin and currency and turn over to the Federal
Reserve all their holdings of gold and gold certificates in exchange for
credits on the books of the central bank or for other forms of currency.
In addtion, the member banks will be required to state the reasons why
they require additional currency. . .
Confusion Marks Reopening.
After the banks reopened yesterday morning in accordance with
Mr.
Woodin's decree making certain exceptions to the national banking holiday,
they closed down again because of fear that the mandatory nature
of the
State banking holiday made their reopening illegal. Some banks
reopened
again late in the day, but confusion reigned all day in banking
circles, and
one bank with many branches opened and closed four times during
the day.
Despite this confusion and uncertainty, the partial restoration of New
York's banking facilities was a great help to the city, and further
improvement in the situation is expected to-day as a result of the united
decision to reopen.
1670
Financial Chronicle
The strain caused by two days without any banking facilities except
change-making and supplying access to safe-deposit boxes was somewhat
relieved by the supply of funds to meet payrolls and relief needs, to cash
checks for essential purposes and to finance the movement of foodstuffs
into the city. Thus some additional currency was put back into circulation and any fear of a food shortage that might have existed was removed.
Another beneficial result of the partial resumption of banking was that,
under Mr. Woodin's regulations, banks were permitted to establish new
"trust fund" accounts, segregating new deposits and permitting their free
withdrawal. This was a step toward the return to normal banking practice
and led to the beginning of a return movement of hoarded currency to
the banks.
Savings banks, of course, did not reopen, except for permitting access
to safe deposit boxes, and will not be open to-day, as Secretary Woodin's
regulations applied to the functions performed by commercial banks and
not to savings banks.
Governor Lehman on Banking Problems of State
dent to Bank Holidays.
Inci-
Indicating that consideration was being given to "the
rehabilitation of the banking mechanism so that essential
needs of the whole people of the State may be satisfied" a
statement as follows was issued on March 5 by Governor
Lehman of New York:
The problem of the New York State banking situation has been my
only concern every hour of the day and night since Thursday, March 2.
I have seen to it that every agency interested is hard at work. I have
maintained continuous contact and conference with all the Federal authorities, with Joseph A. Broderick, State Superintendent of Banking; the
State Banking Board, members of the New York Clearing House, the New
York Federal Reserve Bank and outstanding fiscal and business authorities.
Every possible element of this complicated situation has been under
uninterrupted examination. Every possible solution is being given consideration in an unremitting effort to find the most adaptable answer
within the shortest period of time.
The most immediate requirement demanding my consideration is the
rehabilitation of the banking mechanism so that the essential needs of the
people of this State may be satisfied. That requirement is for the people
of the whole State and overshadows all others in importance. That problem should be solved as rapidly as is humanly possible.
The other problem of the rehabilitation of the full functioning of the
State banking system involves national and international phases. New
York City, as the financial centre of the country, must make its plans
with a view to its national and international relationships. It is clear
that Federal governmental policies are important factors in this consideration. To this end I have been in frequent communication with Washington. Governmental policies are being discussed, and it is expected that
necessary, constructive decisions will be made speedily. As rapidly as
these decisions are known they will be fitted into the co-ordinated program
created for the fiscal system of New York State.
Every agency concerned is hard at work. Every detail of the problem
is under constant examination.
Continuing to hold himself in readiness for a hurried trip either to Washington or Albany, the Governor spent the night at his home here. When
he was informed that a special session of Congress had been summoned for
next Thursday, he said he had no comment to make and that it would
not alter his plans.
Governor Lehman added that "no snap judgments will be
made. We will think out this problem carefully. Whatever plan is devised will meet with the approval of all Federal
and State banking agencies."
Proclamation of Governor Lehman of New York Calling
People to Co-operate with President Roosevelt—
In Accordance with Action Taken at Governor's
Conference.
In furtherance of the action taken at the Conference of
Governors in Washington on March 6, reference to which is
made elsewhere in this issue of our paper, Governor Lehman
of New York issued the following proclamation on March 8
calling upon the people of the State to co-operate with President Roosevelt "in his efforts to bring about a return of economic, banking and financial stability":
Whereas the Governor of the State has received a communication from
a committee of distinguished citizens of the United States, reading in part
as follows: "We, a coalition committee of different groups of political and
religious faith, respectfully request that you join the other Governors of
our country in the issuance of a proclamation in support of the President
of the United States and our institutions, thus enabling the whole people
to declare in unison their confidence and faith in our President:" and
Whereas the conference of Governors in the city of Washington on March
6 pledged their aid to the President in the following language: "In this
anxious hour of a national emergency in our banking and economic life
a heavy responsibility rests on our President to lead us out of our difficulties. He is ready to lead if we are ready to follow: he needs the united
support of all our people in carrying out his plans without regard to our
political affiliations. We. Governors and representatives of Governors
of States, met in conference in the city of Washington, March 6, 1933,
hereby express our confidence and faith in our President and urge the Congress and all the people of out united country to co-operate with him in
such action as he shall find necessary or desirable in restoring banking
and economic stability."
Now, Therefore, I Herbert H. Lehman do call upon the people of the
State of New York and each and every elected and appointed public official
thereof, as well as public officials of the political subdivisions thereof.
to render wholehearted and unflinching co-operation to the President of
the United States in his efforts to bring about a return of economic, banking
and financial stability, and to express such co-operation in thought, spirit,
word and in deed, both in private and official life.
Given under my hand at 820 Park Avenue, In the City of New York,
and under the Privy Seal of the State at the Capitol in the city of Albany,
this eighth day of March, in the year of OW Lord one thousand nine hundred and thirty-three.
March 11 1933
Arrangement Incident to Treasury Bill Subscriptions—
Secretary of Treasury Woodin Permits Banks to
Finish Payments on Bills Dated March 6.
Secretary Woodin yesterday (Mar. 10) authorized banking
institutions to complete for their own account or account of
their customers payment on subscriptions for Treasury bills
sold on Mar. 6. This was indicated in Associated Press
dispatches from Washington (Mar. 10) to the New York
"Sun" said:
The regulation, the sixteenth since the bank holiday was proclaimed,
was issued as the Treasury officials set to work on the procedure that will
be employed in applying the freshly enacted legislation to the tangled
banking situation.
The Treasury sold approximately $75,000,000 in Treasury bills on Mar.6
and the banking noilday Has tied up some of the funds. The regulation.
which permits these to be paid over to the Government, reads:
"All banking institutions are hereby authorized to take such steps and
carry through such transactions as may be necessary to complete, for their
own account or the account of their customers, payment on any subscriptions for Treasury bills of the United States for which payment was due on
Mar. 6 1933."
Checks Given During Holiday Are Valid, Lawyers Hold.
The following is from the New York "Times" of March 9:
The validity of bank checks issued and dated on any week-day during
the present bank holiday is unquestioned, it was said last night by lawyers
accustomed to deal with such questions. This is duo to the fact that
the period is not one of legal holidays which would affect the checks, but
is merely a moratorium during which the banks are directed neither to
pay our nor receive money.
Any business corporation, firm or individual is justified in cashing
checks for that reason. The fact that such checks are circulating freely
throughout the city is sufficient proof that no doubt as to their validity
exists, it was said.
Status of Banking Restrictions by States.
Prior to the issuance of the proclamation of President
Roosevelt providing for a nation-wide bank ,holiday the
New York "Times" printed the following in its issue of
March 5:
Limitations on banking are shown State by Slate in the following compilation
by The Associated Press:
ALABAMA—Closed until further notice.
ARIZONA—Closed until March 13.
ARKANSAS—Closed until March 7.
CALIFORNIA—Almost all closed until March 9.
COLORADO—Closed until March 8.
CONNECTICUT—Closed until March 7.
DELAWARE—Closed indefinitely.
DISTRICT OF COLUMBIA—Three banks limited to 5%; nine savings
banks invoke sixty days' notice.
FLORIDA—Withdrawals restricted to 5% plus $10 until March 8.
GEORGIA—Mostly closed until March 7, closing optional.
IDAHO—Some closed until March 18, closing optional.
ILLINOIS—Closed until March 8, then to be opened on 5% restriction
basis for seven days.
INDIANA—About half restricted to 5% indefinitely.
IOWA—Closed "temporarily."
KANSAS—Restricted to 5% withdrawals indefinitely.
KENTUCKY—Mostly restricted to 5% withdrawals until March 11.
LOUISIANA—Closing mandatory until March 7.
MAINE—Closed until March 7.
MARYLAND—Closed until March 6.
MASSACHUSETTS—Closed until March 7.
MICHIGAN—Mostly closed, others restricted to 5% indefinitely; Upper
Peninsula banks open.
MINNESOTA—Closed "temporarily."
MISSISSIPPI—Restricted to 5% indefinitely.
MISSOURI—Closed until March 7.
MONTANA—Closed until further notice.
NEBRASKA—Closed until March 8.
NEVADA—Closed until March 8, also schools.
NEW HAMPSHIRE—Closed subject to further proclamation.
NEW JERSEY—Closed until March 7.
NEW MEXICO—Mostly closed until March 8.
NEW YORK—Closed until March 7.
NORTH CAROLINA Some Banks restricted to 5% withdrawals.
NORTH DAKOTA—Closed temporarily.
OHIO—Mostly restricted to 5% withdrawals Indefinitely.
OKLAHOMA—All closed until March 8.
OREGON—All closed until March 7.
PENNSYLVANIA—Mostly closed until March 7, Pittsburgh banks open.
RHODE ISLAND—Closed yesterday.
SOUTH CAROLINA—Some closed, some restricted, all on own initiative.
SOUTH DAKOTA—Closed indefinitely.
TENNESSEE—A few closed, others restricted, until March 9.
TEXAS—Mostly closed, others restricted to withdrawals of 815 daily until
March 8.
UTAH—Mostly closed until March S.
VERMONT—Closed until March 7. .
VIRGINIA—All closed until March 8.
WASHINGTON—Some closed until March 7.
WEST VIRGINIA—Restricted to 5% monthly withdrawals indefinitely.
WISCONSIN—Closed until March 17.
WYOMING—Withdrawals restricted to 5% indefinitely.
Bank Holidays or Moratoria in Various States.
Since the publication in our issue of March 4 (page 1481)
of the bank holidays put in force in the various States the
following further action is recorded:
ALABAMA.
Banks Reopen But Are Again Closed by Superintendent of Banks.
Alabama's banks reopened on March 3, according to
Associated Press advices from Montgomery that day, after
Volume 136
Financial Chronicle
a one-day holiday, to operate on a restricted basis except
in a few places where the banks were open for normal business. The banks were closed on March 1 by a proclamation
issued by Governor B. M. Miller calling for a ten-day
holiday, as noted in our issue of March 4, page 1486. Under
date of March 4 additional advices (Associated Press) from
Montgomery said that P., H. Montgomery, State Superintendent of Banks, ordered all Alabama banks closed on
that day until further notice because of the Federal Reserve
Bank of Atlanta suspending transfers of cash. We quote
from letter advices (March 9) as follows:
Alabama's 151 State banks may open for limited business March 10
under an order for a new 10
-day holiday issued late March 9 by the State
Banking Board under authority of a law enacted on that day by the Legislature.
The new order will permit the banks to receive new accounts, to allow
customers access to safety deposit boxes and to accept payment of obllga•
dons due the banks.
ARKANSAS.
State-Wide Banking Holiday for Two Days Declared by Banking Commissioner
—Bill Granting 90
-Day Moratorium on Debts Reported Unfavorably.
Marion Wasson, Bank Commissioner of Arkansas, declared
' mandatory two-day State-wide banking holiday, according
a
to Associated Press dispatches from Little Rock,for March 4
and March 6. Advices from Little Rock the following day
(March 7) said:
All Arkansas banks were notified by the State Bank Commissioner March
7 that they might open March 8 to receive deposits and to pay out "trust
deposits." The "trust deposits" are those received by banks during the
period of restriction last week.
Each branch of the Legislature passed an emergency measure March 7
giving the Bank Commissioner virtually unlimited powers over State
banks in the present crisis.
The same advices noted that the bill which the Arkansas
House had passed to provide a 90-day moratorium on private
and public debts received a unanimously unfavorable report
from the Senate Judiciary Committee March 6. (The bill
was referred to in our issue of March 4, page 1482.)
CALIFORNIA.
Banks Reopen, Limiting Transactions.
Banks in Los Angeles reopened for limited operations on
March 7, according to Associated Press dispatches from
that place. Advices from San Francisco March 7 to the
New York "Times" said in part that under stimulus of
limited banking transactions that day, and the cashing in
full of last week's pay checks issued to employees of many
large institutions, the local monetary situation had relaxed
and business generally sensed the improvement that night
(March 7).
An item regarding the calling of the holiday by Governor
Rolph was noted in our issue of March 4, page 1482.
COLORADO.
Three
-Day Banking Holiday Declared by Governor Johnson.
Governor Edward C. Johnson of Colorado declared a
three-day banking holiday in that State on March 4, Associated Press advices from Denver noted. Two banks in
Grand Junction closed the day previous (March 3), a
contained in Associated Press accounts. The United States
Bank of Grand Junction announced temporary closing
under a local moratorium and the Grand Valley National
Bank announced that it closed so as to protect its depositors
but that it was in condition to pay in full.
CONNECTICUT.
Banks Closed Two Days by Order of Lieut-Governor Roy C. Wilcox—Holid
ay
Extended by Later Proclamation,
The New Haven "Register" in reporting Associated Press
advices from Hartford, Conn., March 4, said that Lieut.Governor Roy C. Wilcox asked all banks in Connecticut to
observe a two-day banking holiday March 4, but institutions
throughout the State remained open though restricting
withdrawals. The advices, as noted in the "Register,"
continued:
Bank Commissioner George J. Bassett said the Lieutenant
-Governor's
request, given In the absence of Governor Wilbur L. Cross. who is attending
the Inauguration in Washington, was not mandatory. The New Haven
Clearing House Association voted to invoke the clause requiring 90 days'
notice for the withdrawal of savings accounts of more than $100. The
Hartford Clearing House Association agreed to remain open to pay with'drawals up to 5% of the total deposit, but to pay regular payrolls in full.
Deposits of cash were accepted but no withdrawals were permitted on
checks from out-of-town banks.
Special advices to the New York "Times" of March 7
from Hartford, said that on March 6 Governor Cross proclaimed an extension through Thursday, March 9, of the
Connecticut bank holiday. Advices (Associated Press)
dated March 9 from Hartford said:
Governor Wilbur L. Cross indicated to-night (March 9) he planned
to extend indefinitely the State bank holiday to conform with the proclamation of President Roosevelt. He issued a proclamation extending the
Connecticut banking holiday through Saturday. March 11, and said his
future course would be determined by President Roosevelt's.
1671
The Governor's proclamation was issued after plans nad been made by
George J. Bassett, State Banking Commissioner, to have banks in the
State reopen March 10 under rigid supervision of his Department.
DELAWARE.
Banking Holiday Declared March 4 Continuing "Until Further Notice"—
Last State to Act.
A bank holiday "until further notice" was declared late
March 4 in Delaware, the last of the 48 States in which
restrictions have been made, according to special advices
from Dover to the New York "Times" of March 5. The
advices also said:
Governor Buck, who is in Washington, telephoned the proclamation
to State Bank Commissioner Harold W. Homey, saying that witti "the
temporary suspension of banking business over tee country, I am left
with no alternative but to take action to protect Delaware banks and
their depositors."
FLORIDA.
Banking Holiday Extending Five Days Declared.
Governor Sholtz has declared a five-day banking holiday
in Florida, according to dispatches (Associated Press) from
Tallahassee, Fla., March 4, beginning March 4 and ending
at the close of business Wednesday, March 8. On March 8
additional Associated Press advices from Tallahassee said
that Florida's 126 State banks were urged on that day by
Comptroller J. M.Lee to adopt modified regulations designed
under the Roosevelt holiday plan to allow resumption of
normal banking activities at the earliest possible moment.
GEORGIA.
Proclamation Extends Banking Holiday.
Associated Press advices from Atlanta, Ga., March 9
said that Governor Talmadge issued a proclamation to-night
extending the banking holiday in Georgia through March 13.
The advices said that he declined to comment further than
the proclamation, which was issued after a meeting with
the State Superintendent of Banks and a number of bankers.
A previous item regarding the Georgia banking holiday
was referred to in our issue of March 4, page 1486.
ILLINOIS.
Bank Holiday.
In Illinois, where on March 3 it had been indicated that
no bank holiday was contemplated, it was decided on March
4 to put into effect a three-day moratorium. As to the
decision, we quote the following from Chicago March 4 to
the New York "Times":
Illinois banks this morning will begin a three-day moratorium on withdrawals, according to an announcement made at 2 o'clock this
morning
at the Chicago Clearing House, where members of the Clearing House
Committee and representatives of the Chicago Federal Reserve Bank were
meeting with Governor Henry Horner.
The moratorium will last until Tuesday night, It was stated. No official
statement was immediately forthcoming from Governor Horner, but
it is
understood that he would make a formal announcement of the moratorium
in Illinois later.
Word of the moratorium came after the oMdals had been in session for
nearly ten hours.
Early yesterday morning Governor Horner had canceled his plans to
attend the inauguration to-morrow, and after bankers had conferred in an
all-night session he had declared he did not believe a bank holiday necessary
"at this time."
Among those who attended this meeting were Melvin A. Traylor and
and Edward E. Brown of the First National Bank, Stanley Field and James
Leave11 of the Continental Illinois National Bank and Trust Company.
Solomon A. Smith of the Northern Trust Company, and Philip R. Clarke
of.
the City National Bank and Trust Company and representatives of the
Illinois Bankers' Association.
Seven outlying banks announced that withdrawals of deposits would
be
limited to amounts ranging up to 5%. The Security Bank of Chicago
and
the Second Security Bank of Chicago limited withdrawals to
5%. The
I. 0. Bank & Trust Co. and the Madison-Kedzie Trust &
Savings Bank
did likewise. The West Side Trust & Savings Bank and the
Mid-City
Trust & Savings Bank limited withdrawals to 2%.
Governor Homer's statement, as given in Associated Press
dispatches from Chicago Mara' 4, follows:
"For the past several days I have been in constant conference
and communication with representatives of the banks of Illinois in an
effort to
determine upon the best course of action in the present emergency.
It has
been hoped and believed that,in spite of bank holidays in States
surrounding
Illinois and throughout the country, the banks of this State
would be able
to withstand the strain that has been placed upon
them. This was my
viewpoint until this hour. Yesterday I issued a
statement to the effect
that a bank holiday did not seem to be necessary
in Illinois at that time.
The greatest effort has been made to avoid such a
necessity. The banks in
Chicago alone have paid out more than
$350,000.000 in the past two weeks
in an effort to stem tho tide. It was also expected
that the National Government might take some general action, but no word
in that regard has been
received by me. The picture has materially changed
since yesterday.
"Finally, after a day of unprecedented withdrawals from
the banks of
this State, and at the request of the Chicago Clearing
House banks and the
Illinois Bankers' Association and with the approval of the
Federal Reserve
Bank of Chicago, I now deem it essential to the welfare of
our citizens, and
necessary for the protection of depositors who have not
withdrawn their
funds, to declare the bank holiday referred to in my
proclamation this day
Issued."
While Governor Homer's proclamation is dated March 3,
it was not actually issued, it is understood, until March 4;
noting its issuance, the Chicago "Tribune" of March 5 said:
Gov. Horner has issued a proclamation closing
all banks in Illinois
through Tuesday, (March 7) to be followed by seven days
of restricted
activities. After March 7 banks may make payments in excess
of 5%, bu
only on checks, drafts, and receipts dated subsequent to March 3. With
Financial Chronicle
1672
March 11 1933
drawalis In excess of 5% may be made for welfare purposes and payment of
taxes or other obligations to the state government or its subdivisions.
tion of Mr. Woodin's ruling for the benefit of Michigan
banks and depositors:
On March 8 Associated Press advices from Chicago said:
The ruling as carried by the Associated Press provides that deposits
heretofore received by any bank under agreement or legislation providing
for their segregation and repayment without restriction may be paid upon
demand.
According to the opinion of Mr. Reichert and Mr. O'Brien, this permits
banks in this State having availed themselves of the Governor's proclamation in reference to trust deposits, to resume business in conformity with
the Governor's proclamation of Feb. 21. This business is to include the
repayment of any deposits heretofore or hereafter made at trust deposits.
Banks having deposited these trust deposits or any part of them in Federal
Reserve banks, it is presumed the Federal Reserve will co-operate in their
release to the extent that such funds are required for repayment
General banking in Illinois remained at a standstill to-day, awaiting word
from Washington as to the anticipated resumption of business Friday.
Extension of the State banking holiday by Governor Henry Horner last
night to conform with the regulations specified by the Secretary of the
Treasury cleared the atmosphere of confusion.
INDIANA.
Governor McNutt Declares Holiday for State Unnecessary.
Governor McNutt of Indiana said on March 4, according
to Associated Press advices from Washington, D. C., that
no bank moratorium was contemplated in his State and
that he believed that such action would be unnecessary.
However, about half of the Indiana banks are restricting
withdrawals, as noted in our issue of last week (March 4),
page 1482.
IOWA.
Temporary Eank Holiday Proclaimed by Lieut.-Governor Kraschel.
Lieut.-Governor Nelson Kraschel, following New York
and Illinois, proclaimed on March 4a temporary bank holiday
affecting all Iowa banks, we learn from Associated Press
advices from Des Moines (March 4). Additional advices
under date of March 8 said in part:
Acting Governor Kraschel announced this afternoon that all Iowa State
and National banks were closed to conform with the State proclamation.
Several banks which opened this morning to accept new deposits discontinued the practice after conversations with State officials, Mr. Kraschel
indicated.
LOUISIANA.
Banking Holiday Extended Through March 6.
Lieut.-Governor John B. Fournet of Louisiana issued a
proclamation on March 4, the Associated Press reports in
advices from Baton Rouge that day, extending Louisiana's
banking holiday through Monday, March 6. Calling of the
holiday originally was noted in our issue of March 4, page
1486.
MAINE.
Two-Day Bank Moratorium.
Governor Brann on March 4, by long-distance telephone
from Washington, D. C., ordered a two-day bank holiday
for the State of Maine, covering Saturday March 4 and
Monday March 6, according to a dispatch by the United
Press from Augusta, Me.
MARYLAND.
Banks Reopen Under Restrictions—Holiday Is Extended Further.
Maryland banks reopened for restricted business March 7
under a set of 14 rules issued by John J. Ghingher, State
Bank Commissioner. State banks had been closed eight
days by the Governor's proclamations. Associated Press
advices from Baltimore March 7, in noting the foregoing,
added:
The rules conformed closely to the regulations of the Secretary of the
Treasury, but were more strict than the Federal regulations for loans to
provide for the "necessities of life."
The banking holiday in Maryland began on Feb. 25 (a
reference to the same was noted in our issue of March 4,
page 1484), and had been extended day by day by proclamations issued by the Governor.
According to Associated Press advices from Baltimore
March 9, Governor Ritchie that night extended the Maryland bank holidays for some 180 State financial institutions
through March 10. The proclamation kept the banks
closed except for certain modifications by the State Bank
Commissioner.
MASSACHUSETTS.
Holiday for Two Days Ordered for All Banks.
A two-day banking holiday was declared for Massachusetts
banks on March 4 by Lieut.-Governor G. G. Bacon at the
request of Governor Joseph B. Ely, who was in Washington
attending the inauguration of President Roosevelt. The
holiday was ordered for Saturday March 4 and Monday
March 6. Advices from Boston March 7 to the New York
"Times" said that all banks under control of the Commonwealth of Massachusetts have been authorized to open
March 8 for limited banking activities, while national banks
have received similar authority from Washington.
MICHIGAN.
Eanking SUuation.
According to advices from Lansing, Mich., on March 6,
printed in the Detroit "Free Press," Michigan banks are at
liberty to free without restriction deposits accepted under
Governor William A. Comstock's proclamation of Feb. 21,
providing for segregation and a trust status, under Monday
evening's (March 6) ruling of William H. Woodin, Secretary
of the Treasury, it was announced from Ann Arbor by
Rudolph E. Reichert, State Bank Commissioner of Michigan.
After a consultation with Attorney-General Patrick H.
OtBrien, the Commissioner issued the following interpreta-
Detroit advices by the Associated Press on Tuesday,March
8, reported that Michigan banks, entering their fourth week
of restricted operations, on that day generally remained
open for limited banking business in line with Governor
Comstock's proclamation, following information that such
business does not conflict with the national bank holiday.
Withdrawals in most cases, it was stated, were limited to
a single 5%.
MINNESOTA.
Banks to be Closed Under Order of Lieut.-Governor Solberg "Until Further
Proclamation."
We quote as follows from Associated Press accounts from
St. Paul, Minn., March 4:
A proclamation declaring a bank holiday in Minnesota "until further
proclamation" was issued to-day by Lieutenant-Governor K. K. Solberg.
acting in the absence of Governor Floyd B. Olson.
All banks, State. national and private, and trust companies come under
the "temporary" mandatory moratorium effective immediately.
MISSISSIPPI.
Six-Day Holiday Declared Beginning March 6—New Restrictions Made
.
on Withdrawal of Bank Deposits.
Blanket restrictions of withdrawals to 5% of deposits
with no exceptions was ordered March 4 for all State banks
in Mississippi by J. S. Love, State Superintendent of Banks,
Associated Press advices from Jackson, Miss., state.
Previously the depositors were allowed $25 plus 5% of
account balances by State banks, as noted in our issue of
March 4, page 1486.
Advices from Jackson March 5 to the New Orleans "Times
Picayune" said that a six-day holiday for State banks in
Mississippi, effective March 6, was declared that night by
Governor Sennett Conner and Superintendent of Banks
Love. The advices add that Superintendent Love earlier
had announced a three-day holiday but revised the decree
to extend six days after telephone discussions with Governor
Conner, who is in Washington.
MISSOURI.
Governor Park Declares Two-Day State Bank Holiday—Some Banks
Do Not Observe Order,
Governor Guy B.Park declared a two-day banking holiday
for Missouri early March 4, Associated Press advices from
Jefferson City that day stated. Under the Governor's
proclamation, all State banks and trust companies will
remain closed March 4 and March 6.
The Governor's proclamation, as noted in the advices,
said:
On account of moratorium declared in Kansas and Oklahoma. I declare
a bank holiday for the entire State of Missouri for to-day (March 4) and
Monday (March 6).
From the St. Louis "Globe-Democrat" of March 4 we
take the following:
Urged by Bankers.
Before making public his proclamation, Governor Park talked with
officials of the St. Louis and Kansas City Clearing Houses. It was understood that prominent bankers had urged him to take the action, in view of
similar steps taken by the Governors of surrounding States.
Except to a few bankers in the Governor's confidence, the proclamation
came as a complete surprise, since only yesterday the executive said in a
statement to the press that information he had indicated Missouri's banks
to be in a stronger position than for some time, and that no moratorium
was contemplated.
The following statement, as noted in the paper previously
mentioned, was issued March 4 by Richard S. Hawes,
Chairman of the St. Louis Clearing House Association:
Governor Park has proclaimed a banking holiday after what is practically
a national movement. The Governor's action will protect the depositors
and the business interests of our city and State, and the Clearing HOMO
banks will fully co-operate.
Associated Press advices noted that a few banks did not
observe the holiday declared by Governor Park. Dated
March 7, further advices noted:
Banks in St. Louis, Kansas city and other Missouri cities opened to-day
to make change and give access to safe deposit boxes, but were not accepting
deposits or making any payments.
Clearing houses were going ahead with plans to issue scrip Friday.
Later advices by the Associated Press, March 8, said that
the Kansas City Clearing House Association to-day authorized banks to make a cash disbursement of 20% on the
accrued payrolls, the remainder to be paid with employers'
check.
1(73
Financial Chronicle
Volume 136
MONTANA.
Governor Erickson Declares Banking Holiday.
NORTH CAROLINA.
Banks Reopen Under Restrictions.
Under date of March 4, Associated Press advices from
Helena, Mont., said that Governor Erickson declared a
bank holiday on that day until further notice for all Montana
banks.
Banks in North Carolina, closed since March 4 under State
and Federal proclamations, opened on March 8 under
restrictions. Authority to open was granted in regulations
issued March 7 by Gurney P. Hood, State Commissioner
of Banks.
NEBRASKA.
-Day Holiday Declared by Governor Bryan—National Banks Reopen
Three
Under Federal Regulations But Most of Slate Banks Remain Closed.
Governor Charles W. Bryan signed a proclamation
March 4 for a three-day legal banking holiday in Nebraska,
extending through March 7, according to Associated Press
advices from Lincoln, Neb., March 4. Advices from
Lincoln March 8, also Associated Press, said as follows:
National banks in Omaha and Lincoln opened to-day(March 81 for limited
business, but most of the State banks remained closed, although authorized
by a proclamation from the Governor to operate under the Federal regulations.
Further Associated Press dispatches from Lincoln March
10 reported that State Bank Commissioner George Woods
said the reopening of Nebraska's 420 State banks to-day
(March 10) for limited operation under a new moratorium
law would not conflict with the presidential proclamation
extending indefinitely the national holiday.
NEW HAMPSHIRE.
Eight-Day Holiday Proclaimed on March 4.
Governor J. G. Winant of New Hampshire on Saturday
last, March 4, proclaimed a bank holiday for a period of
eight days beginning on that date, according to Associated
Press advices from Concord, N. H. Governor Winant's
proclamation, as contained in the dispatch, read:
For the protection of the Interest of tho public, bank depositors and bank
-day period beginning March 4 is declared by me to be
stockholders, the 8
a legal holiday in New Hampshire.
"During this period such restrictions shall be placed upon withdrawal
of funds from any New Hampshire bank as in the opinion of the Bank
Commissioner may be necessary."
NEW JERSEY.
Bank Holiday.
A telegram sent to all banks in New Jersey proclaiming a
bank holiday for Saturday, March 4, and Monday, March 6,
was made public at Trenton on March 4 by the State Department of Banking and Insurance, following an order issued by
Governor Harry A. Moore, who was in Washington attending
the inauguration. A Trenton account, March 4, to the
New York "Times" said:
The telegrams, sent from Washington and signed by William II. Kelly
State Commissioner of Banking and Insurance, who was with Governor
Moore, were as follows:
Owing to bank holiday having been declared in adjoining States. Governor Moore has declared a similar holiday for all banks and trust companies
under the jurisdiction of New Jersey. This holiday includes Saturday,
Mar. 4, and Monday, Mar. 6. All banks are requested to observe same
immediately upon receipt of this message.
In a statement issued through his office here, Governor Moore declared
that in his judgment it would not have been necessary to declare a holiday,
but that it had been "precipitated" by the situation in New York and
Illinois.
"Now that the holiday has been declared," he said, "the banks, in conjunction with myself and the Commissioner of Banking and Insurance,
will work out some plan so that normal business can be resumed at an early
date."
Virtually all the banks in New Jersey had been opened for the transaction
of Saturday business when the telegrams were received, shortly after
9 a. m. The announcement of the holiday was accepted quietly as banking
officials and employes assured their depositors that the action had been
taken solely as a measure of precaution.
The closing of the banks in Paterson prevented several silk manufacturers from meeting their payrolls. Several representatives of silk concerns had been on their way to banks for preparation of weekly payrolls
when they were informed of the holiday.
Several banks here and in other cities remained open until shortly before
the regular closing time at noon. Official notification had been late in
arriving at some institutions, it was said, while others continued to transact
liminess with depositors and customers in the banks at tne time the closing
notice was received.
An indefinite extension of the banking holiday in New
Jersey was directed on March 5 by Governor Moore, who
indicated that the extension would last until the Federal
Government has put into effect its program to meet the
emergency. Trenton advices March 5 to the "Times"
from which we quote, give Governor Moore's statement
as follows:
Thefinancial situation throughout the country is still very much confused.
The national government is bending every energy toward a solution that
will relieve the present distress and restore confidence. Undoubtedly a
decision will soon be reached.
-day banking holiday will end at the close of business
"The present 2
Monday. The financial institutions of New Jersey are as sound and as
liquid as the banks of any State In the Union. In New Jersey there was no
need of a banking holiday.
"The financial structure of the country is so interrelated, however, that
the institutions of no one State can stand alone. Especially is this true of
a State like New Jersey, situated between the two great financial centres of
New York and Pennsylvania, if the banks of these two States remain closed.
"Therefore, until the situation is clarified, until the flow of money can
the people is restored. I direct
be uninterrupted, and until the confidence of
that the present banking holiday be continued.
"With any change in the situation I will, of course, communicate with the
•
people of the State promptly."
NORTH DAKOTA.
Governor Langer Proclaims Temporary Banking Holiday—Banks
Reopen Under Federal Regulations.
We learn from Associated Press advices from Bismarck,
N. D., March 4, that a temporary banking holiday and a
temporary moratorium on indebtedness of all kinds were
proclaimed on that day by Governor William Langer.
The advices add:
His proclamations caused the Senate hurriedly to pass a bill providing
for issuance of State scrip as a medium of exchange. The House had given
its approval previously.
Later advices (Associated Press) said that many banks
opened in North Dakota on March 8 carrying on the limited
functions allowed by Federal regulation.
OHIO.
Almost AU Banks Reopen Under Regulations.
The vast majority of Ohio banks opened on March 7
under almost the identical regulations placed on them a
week ago, as noted in our issue of March 4, page 1483.
OKLAHOMA.
Bank Holiday Extended—Bill Granting Power to Banking Commissioner
to Limit Withdrawals Signed by Governor Murray.
The following advices (Associated Press) are from Oklahoma City, Okla., March 3:
Governor Murray issued a proclamation late to-day (March 3) extending
the mandatory bank holiday in Oklahoma until 9 o'clock Wednesday
morning, March 8.
Additional Associated Press advices from Enid, Olda.;
March 4, said:
A detachment of National Guardsmen to-day closed the First National
Bank of Enid, which had declined to observe Governor Muray's mandatory
banking holiday.
Orignally, Oklahoma's banking holiday was scheduled
to last three days, starting March 2, as noted in our issue
of March 4, page 1487. Under date of March 8 Associated
Press advices from Oklahoma City reported:
Oklahoma's financial paralysis eased to-day with additional issues of
local scrip, opening of several banks under Federal holiday restrictions
and the enactment of a new banking law.
Governor Murray signed the banking bill late to day, placing power to
limit withdrawals in the hands of the State Bank Commissioner, with the
approval of the Governor, and carrying heavy penalties for violations.
OREGON.
Governer Meier Extends Bank Holiday.
Associated Press accounts from Salem, Oregon, March 4,
said that Governor Meier on that day extended the Oregon
bank holiday to include March 6. The advices noted that
in Portland, all banks closed, not permitting restricted withdrawal:3 as heretofore. The Governor first declared a threeday holiday, as noted in our issue of March 4, page 1482.
On March 8 Portland banks were cashing small checks in
accordance with Federal regulations.
PENNSYLVANIA.
Banks Closed for Two Days by Governor Pinrhot.
A bank holiday was declared throughout Pennsylvania
March 4 and March 6. Governor Pinchot issind the
following statement from Wr shington, according to Associated Press advices from Philadelphia March 4:
Because of the declaration of a bank holiday in New York, Illinois and
most of the other States, similar action in Pennsylvania has become unavoidable.
Were our banks to remain open, the demands upon them would impose
an impossible burden.
Therefore, upon specific recommendation of Governor Norris of the
Philadelphia Federal Reserve Bank,I hereby declare a bank holiday through
out Pennsylvania on Saturday, March 4 1933 and Monday, March 6, 1933.
Advices from Philadelphia to the New York "Herald
Tribune" of March 5 said in part that despite the Governor's
proclamation many of the 485 State and 283 national banks
in Pennsylvania remained open on March 4. The benks in
Harrisburg opened as usual, ignoring the holiday.
RHODE ISLAND.
State Has One-Day Holiday.
A one-day bank holiday 'was declared in Rhode Island on
March 4 for that day by Acting Governor Robert Quinn.
SOUTH CAROLINA.
Banks Authorized to Operate Under Regulations Issued by Secretary of
the Treasury Woodin by Governor's Proclamation.
Governor Blackwood of South Carolina issued a proclamation on March 7, states Associated Press advicqs from
Columbia, S. C., authorizing banks in his State to operate
under regulations issued by Secretary of the 1reasury
Woodin.
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Financial Chronicle
TENNESSEE.
Bank Holiday Extended Through March
to.
Tennessee's bank holiday was extended through Friday,
March 10 by Governor McAllister March 4, according to
the Memphis "Appeal' of March 5. The paper quoted
states that the Governor telegraphed his proclamation from
Washington to his office at Nashville. Observation of the
holiday is optional with the banks, the paper states, most of
which have remained open so as to cause as little interference
with busine.:. as possible. In our issue of last week (March
4), page 1485, we gave an item bearing on tne original
holiday.
VERMONT.
Two Day Bank Holiday.
Associated Press advices from Montpelier, Vt.,on March 4
stated that Acting Governor Smith of Vermont on that
date proclaimed a bank moratorium for March 4 and
March 6.
VIRGINIA.
Openings Authorized Under Terms Permitted by Secretary of the Treasury.
We quote from Associated Press advices from Richmond,
Va., March 7, as follows:
Governor Pollard to-day (March 7) said State banks could exercise
the same functions of essential service permitted to national banks by the
Secretary of the Treasury without lolating the terms of his proclamation
declaring a four-day holiday in Virginia.
WYOMING.
Withdrawals Restricted to
5%.
Governor Miller of Wyoming announced on March 8,
according to Associated Press advices frow Cheyenne,
that when the Presidential bank holiday is ended, Wyowing
banks will continue indefinitely to limit withdrawals to 5%.
The 5% limit was set by Acting Governor A. M. Clark
in a proclamation issued March 3.
Message of Governor Lehman of New York to State
Legislature Submitting Bills for Increased Powers
to Governor, Bank Superintendent and Insurance
Superintendent to Meet Banking Emergency.
On March 6, Governor Lehman of New York addressed a
special message to the State Legislature asking immediate
action on several bills to broaden the powers of the Governorship, State Banking Department and the State Insurance
Department to meet conditions as they may arise in the
present emergency.
The Governor's message follows:
STATE OF NEW YORK, EXECUTIVE CHAMBER.
Albany, larch 6 1933.
To the Legislature:
developments in this State, in our neighboring States, and in the
Recent
Nation at large, have created grave emergencies in fiscal and banking
affairs which require immediate attention and speedy action.
The National proclamation, which was issued at 1 o'clock this morning,
makes possible the issuance of Clearing House certificates to provide a
temporary currency. The certificates that may be issued by clearing houses
will not be adequate for the needs of the entire State because there are
not enough clearing houses at this time to make the circulation of such
certificates sufficiently wide to permit adequate relief. Additional steps
must be taken by the State to afford a common medium of exchange to those
of our people who have funds on deposit, but who are unable to use them
in the ordinary channels of commerce.
I have prepared a plan for the distribution of uniform certificates thrOughout the State. I have already submitted it to the Secretary of the Treasury
for his approval, in accordance with the proclamation of the President.
Assoon as his approval is obtained,I shall submit it to your honorable bodies
for action.
In the meantime,it becomes essential, in my opinion, to give to the Banking Board and to the Superintendent of Insurance additional powers to
meet conditions as they may arise in this emergency.
It has become the duty of the Governor, within the last few days, to take
quick action in connection with banks in this State at hours when it would
have been impossible to obtain legislative sanction. The necessity for
similar action may arise again during this emergency. The Governor
should be equipped with power to meet such situations. I deem it essential
that I, as Governor,for the period of the emergency only, be given adequate
power by your honorable bodies to make any proclamation which will
insure to the fullest possible extent the protection of the people of the
State in their daily needs.
I am submitting three bills carrying out the recommendations granting
these powers to the Superintendent of Banks. Superintendent of Insurance
and to the Governor. I trust that your honorable bodies will enact them
to-night.
HERBERT H.LEHMAN.
Indicating in its issue of March 7 that the companion
bills were proceeding through the Legislature in rush order
on the night of March 6, the New York "Herald Tribune"
•of March 7 stated:
These bills give dictatorial powers to Governor Lehman. the Superintendent of Insurance and the State Banking Board, to suspend any provision of the banking and insurance laws, in whole or in part, during the
emergency. The Assembly passed the bills at 12.10 a. m., after only 15
minutes, and the Senate passed them at 2.20 a. m. The fourth bill, for
State Scrip, probably will be taken up to-day.
Reference to Governor Lehman's message of March 7,
dealing with the issuance of State scrip, is made in another
item in this issue of our paper.
March 11 1933
Message of Governor Lehman of New York to Legislature for Creation of State-wide Corporation with
Power to Issue So-called Scrip or Certificates—
Permission to Issue Certificates Later Revoked by
Secretary of Treasury.
In addition to asking for greater powers for the Governor,
the State Superintendents of Banks and also of Insurance
(this message is referred to in another item), Governor
Lehman of New York on March 7 sent a message to the
Legislature, asking for legislation authorizing the creation
of a State-wide corporation with power to issue certificates
"to serve the purpose of money." According to an Albany
dispatch March 7 to the New York "Herald Tribune,"
the Legislature late in the day, March 7, unanimously approved the Governor's plan for the issuance of scrip to
circulate as currency on a State-wide basis. The dispatch
added:
The Lehman plan is designed to prevent a multiplicity of issues of scrip
in the State, which might circulate at different values and cause confusion,
and it is also designed to provide a medium of exchange for communities
which have not sufficient banking facilities to issue scrip themselves.
However, it will not interfere with the issuance of the scrip already
prepared for the New York Clearing House Association and other such
agencies. It is probable that some issues put into circulation in the early
stages of the emergency may be withdrawn later in favor of some more
uniform paper.
"In the event the National Government evolves a plan, after the certificates have been issued, to supply the needs of the public for money on
a National basis, the plan of the State can readily be absorbed into such
a National undertaking," said the Governor.
The Governor's message on the certificate plan follows:
Executive Chamber, March 7 1933.
To the Legislature:
I am submitting to your honorable bodies proposed legislation designed
to provide a medium of exchange for those communities in the State which
cannot be served by the certificates proposed to be Issued by the Clearing
House.
The certificates of the various clearing houses will naturally circulate
mainly in those communities having such clearing houses which may decide
to issue such certificates. The result would be that only a very strictly
limited number of communities in the State would derive any substantial
benefit from the issuance of these certificates. The rest of the State
would not have any ready currency to go into the ordinary channels of
trade. Besides, the certificates issued in the different communities of the
State would have so great a disparity in their relative value that there
would be a constant uncertainty in the minds of the people as to the actual
value of the scrip being used by them.
The bill which I recommend to your honorable bodies for immediate
passage provides for the creation of a State-wide corporation with power
to issue certificates which there is every reason to believe will serve the
purpose of money and pass from hand to hand as such throughout the
State. These certificates and the plan in general would not interfere in
any way with the issuance of certificates by the clearing houses, although
any clearing house may join the State-wide corporation.
Any banking institution in the State would be allowed under this bill
to transfer a proportion of its sound assets to this corporation and receive
in exchange therefor certificates with which to pay its depositors and thus
make credit available for the community in which it is located. It will
be possible to create such a corporation very promptly. It will be subject
to State control and complete supervision of the banking department.
Its board of directors must be approved by the Governor and the general
operations of the corporation must be in accordance with the regulations
of the State Banking Board. Necessary safeguards are provided in the
bill to prevent an overissue of certificates in excess of the amount actually
needed by the communities of the State. Precautions have also been taken
in the proposed legislation against the issuance of too large a percentage
of certificates as compared with the assets of any single bank. The certificates will include very small denominations. In the event the National
Government evolves a plan after the certificates have been issued to supply
the needs of the public for money on a National basis, the plan of the
State can readily be absorbed into such a National undertaking. The
State will accept certificates issued by this corporation in payment of taxes,
and political subdivisions of the State will be authorized, if they desire,
to do likewise.
Under the proclamation issued by the President, it is necessary to obtain
the approval of the Secretary of the Treasury for the issuance of these
certificates. At my request, the Secretary of the Treasury has approved
this plan, subject only to a revocation in the event that a National plan
is evolved on on before March 8 1933, which in the opinion of the Secretary of the Treasury might be jeopardized by the operation of the State
plan.
I recommend that your honorable bodies pass this legislation at once,
so that if the permission is not revoked by March 8, the State may be
in a position immediately to proceed. The social needs of the State require
an immediate issue ofsome medium of exchange which would be State-wide.
I believe that the proposed legislation will accomplish this purpose and
should for that reason be passed as quickly as possible.
HERBERT H. LEHMAN.
Incidentally, it may be noted that Governor Lehman
announced late Wednesday night (March 8) that Secretary
of the Treasury Woodin had revoked permission to issue
certificates granted to New York corporations. The Governor's statement follows:
I am in receipt of the following official telegram from the Treasury
Department at Washington:
"Secretary of Treasury hereby revokes permission to issue certificates
granted to corporations of the State of New York organizeeto provide
an adequately secured temporary medium of exchange. Power of revocation is exercised in accordance with regulation Issued March 7 1933, by
Secretary under authority conferred upon him by President's proclamation
of March O.
"JAMES H. DOUGLAS
:Assistant Secretary Treasury."
Volume 136
Financial Chronicle
In its issue of March 9, the New York "Herald Tribune"
said:
•
Despite the knowledge that plans for new National currency might render
scrip needless, Governor Lehman went forward briskly earlier in the day
with the organization of his Emergency Certificate Corporation. As
former Governor Smith, its Chairman, explained, "We are willing to
work in any manner."
Elsewhere we refer to the officers and directors named
for the Emergency Certificate Corporation. We give here
a statement in the matter issued March 6 by Governor
Lehman.
The Governor's statement follows:
The action by the Clearing House banks to provide Clearing House
certificates to pass as currency by itself is wholly inadequate to meet the
needs of the State of New York. These certificates will naturally circulate
mainly in those communities having clearing houses, which may decide
to issue such certificates.
Under such plan only a very strictly limited number of communities
would derive any benefit at all from the issuance of these certificates.
The result would be that in nearly all of the communities of the State no
ready medium of exchange or currency would be issued to go into the
ordinary channels of trade. Another result would be that in the different
communities of the State where Clearing House certificates get into circulation, there would be a disparity in the relative value of the certificates,
bringing about a constant uncertainty in the minds of the people, as to the
value of the scrip being used as a medium of exchange.
It was to overcome the difficulties of this situation that I decided upon
• a plan which would be effective throughout the entire State. not only in
all of the cities of the State. but also in the rural sections. This plan would
not in any way interfere with the issuance of certificates by the NeyvYork
Clearing House banks.
Under the provisions of the Proclamation issued by the President,
any proposal for the issuance of certificates or media of exchange has
to be submitted to the Secretary of the Treasury for his approval. Accordingly. as soon as my plan was completely formulated, I sent representatives to Washington this morning to lay it before Mr. Woodin. While
these representatives were on their way to Washington. I called Into conference the Republican and Democratic leaders of the Legislature and
discussed the plan with them In order to secure their co-operation. They
assured me of their desire to co-operate with me in doing everything possible to release a substantial portion of the funds on deposit in these banks
and to provide a ready medium of exchange which would be acceptable
In ordinary business transactions.
I have just been informed that Mr. Woodin has approved the plan,
and I am accordingly dispatching to Albany at once copies of the necessary
bills to carry the plan into effect.
The plan provides for the setting up of a State-wide corporation, with
power to issue certificates which we have every reason to believe will
serve the purpose of money and pass from hand to hand as such.
Any banking institution in the State will be allowed to transfer its assets
to this corporation and receive in exchange therefore certificates with which
to pay its depositors, and thus make credit available for the various communities in which they are located. It will be possible to create such a
corporation almost immediately. The corporation will be subject to
State control and complete supervision of the Banking Department. Its
board of directors must be approved by the Governor and the general
operations of the corporation must be in accordance with the regulations
of the State Banking Board. Necessary safeguards have been provided
to prevent an over-issue of certificates in excess of the amount actually
needed by the communities of the State. Precautions have also been
taken against the issuance of two Mille a percentage of certificates as compared with the assets of any single bank. The certificates will include
very small denominations.
In the event that the National Government evolves a plan to supply
the needs of the public for money, the plan of this State can readily be
absorbed into such a National undertaking.
Certificates issued under this plan will be accepted by the State
and
all political subdivisions thereof in payment of taxes or other public dues.
The success of the undertaking will depend, in large measure, upon
the co-operation given to us by the people of the State. The State itself
Is doing what it can by the acceptance of these certificates for obligations
due to the State. If the people will evidence a spirit of co-operation in
using these certificates in ordinary business transactions, I feel confident
that business may be resumed in a manner to supply the needs of the people
within the State.
The text of the State Scrip Act will be found elsewhere
in our issue to-day.
Text of Scrip Act Passed by New York Legislature.
From an Albany dispatch March 7 to the New York
"Times" we take as follows the text of the Scrip Act passed
by the New York Legislature that night:
AN ACT.
To amend the banking law to provide for the creation of corporations
to receive assets from banking institutions and issue certificates in exchange therefor. The people of the State of New York represented in
Senate and Assembly, do enact as follows:
SECTION 1, Chapter 369 of the laws of nineteen hundred fourteen,
entitled, "An act in relation to banking corporations, and individuals,
partnerships, unincorporated associations and corporations under the
supervision of the Banking Department, constituting Chapter 2 of the
consolidated laws," as last amended, is hereby amended by adding thereto
a new article immediately following Article III, to be Article IIIA, to read
as follows:
Article ILIA.
SECTION 100A. INCORPORATION, ORGANIZATION CERTIFICATE, AMOUNT OF CAPITAL STOCX.—Five or more persons
may form a corporation to engage in business pursuant to this article,
subject to the following:
1. The Banking Board, by a two-thirds vote of all its members, shall
first certify that an emergency exists and that there is a need for such a
corporation for the protection of the public interest.
Five persons shall subscribe and acknowledge an organization certificate
In duplicate, which shall specifically state:
(a) The name by which the corporation is to be known.
(b) The place where its business is to be transacted.
(c) The amount of its capital stock, which shall not be more than $25,000 and which shall be divided into shares of the par value of $100 each.
1675
(d) The names and places of residence of the incorporators and the number of shares subscribed for by each.
(e) The term of existence, which shall be for not more than two years.
but which may be renewed for an additional term of two years.
(f) The number of the directors of the corporation, which shall be not
less than 10 nor more than 20. No person shall act as a director unless
approved by the Governor.
SECTION 100B. WHEN CORPORATE EXISTENCE BEGINS.
—When the superintendent shall find that the provisions of this article
have been complied with and upon the approval of the banking board,
he shall immediately issue an authorization certificate, as specified in
Section 24 of this chapter, and thereupon the corporate existence shall
begin and the corporation shall have power to elect directors and to do
business.
SECTION 1000, OATH OF DIRECTORS—MEETINGS.—Immediately upon their election the directors shall subscribe to an oath similar
to that required to be filed by directors of banks and in form satisfactory
to the superintendent, and shall meet and select a President and such
other officers as they deem necessary. Thereafter the directors shall meet
at least once each month.
SECTION 100D. BRANCH OFFICES.—With the consent of the
superintendent and the Banking Board, the corporation shall have power
to establish branch offices throughout the State.
SECTION 100E. GENERAL POWERS.—In addition to and not
In limitation of the powers conferred by the general and stock corporation
laws, a corporation organized pursuant to this article shall have power,
on terms and conditions to be prescribed by its board of directors and
approved by the Superintendent and the Banking Board, to receive assets
of any kind belonging to a banking corporation (including a corporation
In liquidation) organized pursuant to the laws of this State or of the United
States, and or to a private banker operating under the supervision of the
Banking Department of this State. to hold or dispose of such assets and
In exchange therefor to issue certificates in such form, denominations
and amounts as may be approved by its board of directors. the Superintendent and the Banking Board. Provision shall be made in accordance
with rules and regulations by the Banking Board for the redemption of such
certificates.
SECTION 100F. TRANSFER OF ASSETS.—Banking corporations
organized under the laws of this State and private bankers operating under
the supervision of the Banking Department of this State, shall have power
to transfer any of their assets to a corporation organized pursuant to this
article and to accept in exchange therefor certificates provided for herein
and to use the said certificates in the payment of their obligations.
SECTION 100G
USE OF CERTIFICATES.—Certificates issued
by a corporation organized pursuant to this article shall be received at
their face value In payment of taxes or other dues to the State of New York:
and they may be accepted in payment of taxes due to any political subdivision thereof, and in payment of debts owing to any corporation chartered by the State of New York. Such certificates shall not be subject
to any taxes by the State of New York or any political subdivision thereof.
SECTION 10011. DISSOLUTION.—Upon the dissolution of a corporation organized pursuant to this article, any funds remaining after the
redemption of its certificates, the payment of its obligations and the return
to the stockholders of any amount equal to their original subscriptions,
shall be paid into the Treasury of the State of New York.
SECTION 1001. CONSTITUTIONALITY.—If any provision of
this article Is declared unconstitutional or the applicability thereof to
any person or circumstances is held invalid, the validity of the remainder
of the article and the applicability of such provision to other persons and
circumstances shall not be affected thereby.
SECTION 2. This act shall take effect immediately.
Conferences at New York Clearing House on Problems
Incident to Bank Holidays—Group Organized
Under Glass-Steagall Amendment to Federal
Reserve Act.
The emergency banking situation has absorbed the attention of the New York Clearing House during the week. A
conference of a week ago brought therefrom a statement
incident to the banking holiday proclaimed in New York
State by Governor Lehman, which we print in our item
covering the step taken by the Governor. The fact that
the conferences had continued throughout the day on
March 4 was indicated in the "Times" of March 5, from
which we quote:
In Touch with Broderick.
Governor Lehman kept in touch with the bankers and with Superintendent of Banks Broderick by telephone. Although he declared that he
had had several telephone conversations with President Roosevelt prior
to calling the bank holiday early yesterday morning, he said last night
that he had had no further communication with the White House. It was
plain, however, that Governor Lehman and, through him. the New York
bankers were looking to the White house for the next move.
In a 5 p. m. conference Governor Lehman said:
"The situation in New York, the cause of the holiday and the developments through the various States has made of this a national problem.
Obviously, until we know what Federal policy will be instituted and what
line the Federal Government will follow, it is difficult to make any
expression of the line of action to be followed in New York."
In response to a question as to whether he expected the banks to reopen on Tuesday morning, when the two-day holiday comes to an
end.
Governor Lehman replied quickly:
"I hope so."
•
Clearing House Men Busy.
The New York Clearing House Association Committee, he said, had
been hard at work through yesterday planning for the future.
"The bankers have been holding many conferences among themselves
and the State Bank Board Is working on plans looking toward
the reopening of the banks on Tuesday. So far, there have been no new
developments."
The same paper had the following to say in its March 6
issue regarding conferences on Sunday, March 5:
At headquarters of the New York Clearing House Association.rwhere
leading bankers conferred all afternoon, the news of the plan to issue Clearlag House certificates was officially confirmed. It was
announced that
the Association had adopted the scrip plan formally,
had authorized its
officers to put it into effect "when, as and if" needed, and had set up machinery for issuing the certificates.
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Financial Chronicle
The Association also announced that the Clearing House banks had
organized a group under the Glass-Steagall amendment to the Federal
Reserve Act whereby the Federal Reserve requirements as to collateral
are liberalized.
Bankers said the Clearing House certificates probably would be ready
to-morrow if they were needed then. The amount to be issued was not
announced.
The statement issued by Mortimer N. Buckner. President of the New
York Clearing House Association and Chairman of the board of the New
York Trust CO.. follows:
The New York Clearing House Association, at its meeting Saturday
morning, adopted a plan for the issuance of Clearing House certificates and
authorized the officers of the Association to put the plan into effect when,
as and if the present emergency demanded it.
"The necessary committees have been appointed and the machinery
for carrying out the provisions of the plan has been set up and completed:
and the Association is now in a position to extend to its members this privilege which membership in the Cle:ring House affords them.
"The banks in the Clearing House Association, members of the Federal
Reserve System, have also formed themselves into a group under section 10a
of the Federal Reserve Act, known as the Glass-Steagall amendment, under
which additional credit facilities are afforded."
The State Banking Board, of which Joseph A. Broderick, Superintendent
of Banks, is Chairman, will meet at 10 o'clock this morning in the State
Office Building, 80 Centre St., to discuss plans for the scrip issue, to prepare for the reopening of the banks when the holiday ends and to take
other action. . . .
While George W. Davidson, Chairman of the Central Hanover Bank &
Trust Co. and of the New York Clearing House Committee, conferred in
Washington with the officials of the new Administration on plans for the
Issuing of Clearing House scrip. Mr. Buckner and other bankers were
engaged here in perfecting the details of the plan.
Representatives of the law firm of Rushmore, Bisbee & Stern went in
and out of the Clearing House at 70 Cedar St., where the bankers were at
work, and strings of messengers, out-of-town bankers and technical assistants came and went all afternoon.
Mr. Buckner, emerging from the Clearing House shortly after 5 p. m.,
announced that he would have a statement within fifteen minutes. Two
hours later the statement had not materialized, but Herbert P. Howell,
President of the Commercial Bank & Trust Co. and a member of the
Clearing House Committee, left the building, declaring the meeting was
over and that no statement would be issued.
• Soon after that word was given out at the Clearing House that Mr.
Buckner would have an announcement after all.
This series of announcements and counter-announcements reflected the
strain under which the bankers were working, and this was reflected further
in their impatience at all questions and their apparent belief that their
efforts to meet the national crisis were a private Clearing House matter.
The third paragraph of Mr. Buckner's brief announcement caused some
surprise among banking authorities outside the Clearing House group.
Section 10-A of the Glass-Steagall amendment to the Federal Reserve Act
provides that groups of five or more member banks of the Federal Reserve
System may borrow upon their demand promissory notes from the Federal
Reserve Bank on collateral not ordinarily eligible provided the bank or
banks which receive the proceeds ofsuch advances have no adequate amount
of eligible assets which they could rediscount at the Reserve bank in the
ordinary way.
It has been known for some time that the Clearing House banks, in
connection with their "all for one and one for all" policy, adopted early
in the Clisis, had taken steps to place themselves in a position to make
use of the provisions of the Glass-Steagall Act, but the prevailing view
in the financial district was that the move had no practical significance
because all the Clearing House banks were understood to have ample
supplies of United States Government securities and other eligible assets.
As long as any one of them had a supply of assets eligible for rediscounting under the ordinary rules of the Federal Reserve, no borrowings could
be made under Section 10-A. The fact that Mr. Buckner had taken occasion
to announce the formation of a group under this section of the Reserve Act
accordingly aroused conjecture as to whether any of the Clearing House
banks had depleted its eligible assets in meeting the recent drain on deposits.
Mr. Buckner himself was not present when his announcement was given out
and none of his associates could say where he could be reached.
It was explained later by other bankers, however, that the purpose of
organizing a group under Section 10-A was to place the Clearing House
banks of the city in a position where they would be 100% liquid. Thus,
even if it were not possible, because of mechanical difficulties, for them
to obtain Federal Reserve currency by pledging their assets at the Reserve
bank, they could, nevertheless, obtain Federal Reserve funds—that is,
deposits at the Reserve bank, which constitute legal bank reserves and
which can be shifted about the country from Reserve district to Reserve
district in effecting transfers of funds between centres.
With Clearing House scrip taking the place of ordinary money in the
operations of the banks, intercity clearings between the clearing houses of
the various cities still could be carried out in terms of Federal funds through
the Reserve system. With provision made for borrowings, if necessary,
under the Glass-Steagall Act, there would be no limitation upon the New
York banks in meeting withdrawals by out-of-town banks or other customers.
As the plan would work, out-of-town banks, having funds on deposit
with a New York City bank, would be able to withdraw them in the usual
way, receiving the proceeds in the form of a credit at its own Reserve bank.
In the case of out-of-town corporations and others having funds on deposit
here, withdrawals probably would be made by the transfer of Federal funds
from New York to the credit of a bank in the district of the withdrawer
and the payment of the deposit in the form of scrip of the Clearing House
there.
In its issue of March 8 the New York "Times" said:
The difficulties experienced by newspapers in obtaining first hand and
definite information from officials of the New York Clearing House Association regarding the efforts of bankers to meet the financial emergency
prompted the suggestion yesterday that a spokesman be appointed to inform the public upon the progress of steps being taken to relieve the crisis.
Nominally Mortimer N. Buckner, President of the Association, is the
official source ofinformation, but promised announcements often have either
failed to materialize or have resulted in non-commital statements many
hours later. Other members of the Clearing House group are restricted
in the information they can convey by an agreement which has made
Mr. Buckner the nominal spokesman and which leads them to conclude
that he has made all necessary arrangements for publicity.
Reporters having been forcibly ejected and barred from the Clearing
House building on Monday by Clarence E. Bacon, Manager, have obtained
almost all the information thus far made public through the process of
waylaying bankers upon their arrival and departure.
The reporters waited in the rain all day yesterday for a promised announcement to be made by Mr. Buckner in person at 7 p. m. At that
.
hour Ivy Lee, the press agent, appeared before the rain-sodden gathering
and informed them that there would be no statement.
March 11 1933
In addition to what is said above regarding plans for the
issuance of scrip, further information with regard thereto
is given under another head in this issue of our paper.
Embargo on Gold Exports Applies to Postal Money
Orders to Foreign Nations—Issuance of Domestic
Money Orders Continues Without Restrictions.
Postmasters throughout the country were notified on
March 7 that the embargo on the exportation of gold proclaimed by President Roosevelt applies to postal money
orders sent from the United States. Washington advices
March 7 to the New York "Journal of Commerce" from
which we quote, added:
During the continuance of the moratorium money orders on either the
domestic or international forms will not be issued for payment in any foreign
country—including Canada, Cuba, the Philippines, the Panama Canal
and the West Indies.
Domestic money orders will continue to be issued in the usual manner
and without restriction for payment in any one of the United States, Alaska,
Hawaii, Puerto Rico, Virgin Islands, of the United States, Guam, Page
Page and the District of Columbia. Postmasters at the offices on which
drawn have been directed to pay them promptly on presentation to properly
identified owners if regular in every respect.
Seek to Comply With Order,
"The purpose of this order it to insure compliance with the President's •
proclamation prohibiting the exportation of gold," an announcement of
the department said. "Since foreign governments must be reimbursed
if they pay our money orders, to permit postal money orders to be sent
abroad would nullify the embargo. Therefore, postmasters are cautioned
not to issue foreign money orders and if. through error, such orders should
be issued on the international forms, the money order exchange offices in
the United States will withhold certification and notify the issuing postmasters to return the money to the purchasers.
"By this instruction it is intended to insure the prompt payment in
cash of postal money orders and postal savings certificates. As both
are payable on demand, postmasters are expected to provide themselves
with funds, thus assuring immediate payment."
All post offices having a credit on money order account with the Treasurer
of the United States have been informed that the Secretary of the Treasury
has ruled that all banking institutions are permitted to cash checks drawn
on the Treasurer of the United States.
May Draw Check for Funds.
"Postmasters, if in need of cash for the payment of money orders, postal
savings certificates or other postal expenditures, are directed to draw a
check against the money order credit for the amount required and if one
of the local banks has available funds, cash it there and use the money
obtained as needed, making proper transfers to postal or postal savings
accounts.
"If local banks cannot furnish cash, the checks are to be drawn in favor
of the postmaster of the most convenient city in a list furnished them.
The check, when received by the postmaster selected will be cashed at
the Federal Reserve Bank and the postmaster in the Federal Reserve city
will forward the cash by registered mail to the postmaster who drew the
check.
"Every effort should be made by postmasters to transact money order
and postal savings business promptly and if, in any instance, payments
must be delayed until funds are received, patrons should be assured that
the money will be obtained at the earliest possible moment," the Department declared.
No Funds Wired Abroad—Cable Companies Extend
Ban to Canada and Mexico.
•
The New York "Times" in its March 7 issue said:
The Western Union Telegraph Co. and the Postal Telegraph & Cable
Corp. extended yesterday to money order service to and from Mexico
and Canada the temporary suspension made effective with respect to Europe
and other foreign points on Saturday.
Money orders to and from points in the United States were still being
limited to $100 for any one person. Where the paying offices of the telegraph companies lack sufficient cash to pay the money orders, they are
giving checks or drafts to the payees.
Among the other emergency measures undertaken to give relief to persons
in all parts of the country temporarily short of funds were the following,
according to Western Union:
Messages of out-of-town persons without cash will be accepted and
sent collect, or charged to the home address of the sender. Hotel guests
without funds may send telegrams and charge them to the hotel.
Clearing House certificates or scrip will bo accepted in sending money
orders subject to such money orders being paid in the same sort of paper
at destination, if it is available there.
Checks will be accepted from charge account customers in payment
of their past-due bills, if the amount of the check is not in excess of the
bill. Telegrams will be accepted and transmitted on a charge basis for
all charge-account customers.
Members of New York Stock Exchange Asked to Supply
Record of Gold Payments and Withdrawals.
On March 9 a ruling calling upon members of the New York
Stock Exchange to furnish the latter with a record of payments and withdrawals of gold, was made public as follows
by the Committee on Publicity of the Exchange:
13. Members shall immediately prepare a record of all payments, withdrawals, and re-deposits in gold made by them or through their firms
between Jan. 11933, and March 13 1933. Said record shall show the date
and the amount involved, the names and addresses of the persons concerned, and how delivery was effected.
An amendment to the ruling was issued as follows by the
Publicity Committee on March 10:
Ruling 13 is amended to read as follows:
Members shall immediately prepare a record of all payments, withdrawals
and re-deposits in gold or gold certificates made by them or through their
firms between Feb. 11933. and March 13 1933, inclusive.
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Financial Chronicle
Members shall also prepare a separate record showing all such payments,
withdrawals and re-deposits of which they have knowledge made by them
or through their firms between Feb. 1 1931, and Jan. 31 1933. inclusive.
These records shall show the date, the amount involved, the names and
addresses of the persons for whose account such transactions were made
and how delivery was effected, and shall be filed with the Committee on
Business Conduct, roofn 609, 11 Wall St., New York City, before noon on
March 15 1933.
Other rulings promulgated by the Exchange this week are
given elsewhere in our issue to-day.
Telegraphic Transfers Now Limited to $100.
In its March 6 issue the New York "Journal of Commerce"
said:
Telegraphic transfers of funds have been limited to $100 on money orders
bylthe two companies which have been doing a tremendous business in
them the past few days. Both the Western Union Telegraph Co. and the
Postal Telegraph & Cable Corp. took action to reduce the limit on transfers
when it became apparent that currency shortages might arise at points
particularly stressed. The former limit during the period of banking
moratoria had been set at $250.
All over the country as the banking holidays spread there had been calls
for currency and the speediest way to meet them was by telegraphic transfer of funds. The accumulating calls in the affected areas laid a heavy
strain on the wire companies. Now with the whole country tied up in a
banking holiday it is probable that payments and orders will balance in
the various centers but the restriction still holds for safety's sake.
Federal Reserve Board Acts to Seek Out Those Hoarding
Gold—Requires Lists From Federal Reserve Banks
of Persons Withdrawing Gold From Reserve or
Member Banks—Large Amounts Being Turned in
at Reserve Bank.
Action was taken by the Federal Reserve Board to seek
out those hoarding gold, the New York Federal Reserve
Bank indicating this in the following circular:
FEDERAL RESERVE BANK OF NEW YORK
Information Concerning Withdrawals of Gold.
To all Banks in the
Federal Reserve District:
Second
The following telegram has been received from the Federal Reserve
Board:
It is requested that you prepare and forward to tne Board as soon a
possible after Mar. 13 1933. as complete a list as can be made from information you are able to obtain, of the names and addresses of all persons who
have withdrawn gold from your bank or a member bank in your district
since Feb. 1 1933, and who nave not redeposited in a bank on or before
Mar. 13 1933.
To assist us in preparing the list which the Federal Reserve Board has
requested, please send us on the enclosed form, using additional blank
sheets if necessary, a list of the names and addresses of persons who on or
after Feb. 1 1933, have withdrawn gold coin or gold certificates from your
bank and who have not, to your knowledge, redeposited the same in a
bank on or before Mar. 13 1933;
Please also furnish us with a separate list containing similar information,
so far as available, regarding withdrawals of gold coin and gold certificates
from your bank prior to Feb. 1 1933.
GEORGE L. HARRISON, Governor.
Regarding the Board's move a dispatch, Mar. 8, to the
New York "Times" said:
The Reserve Board's action is understood to have been taken upon
a direct order from President Roosevelt in preparation for the emergency
legislation plan to punish those who hoard gold after a certain date and to
enforce the regulations which seek to impound all the nation's gold until
the end of the present emergency.
One of tee difficulties in locating the hoarded gold, it was said, will
arise from the fact that many of those who withdrew the metal gave names
other than their own. But the identities of the large hoarders are known
to the Federal Reserve cashiers in the various cities, and the measure is
conceded to be one of the most effective ways to end hoarding.
The order was sent so suddenly and directly that it came as a surprise
to junior officials of the Treasury and the Federal Reserve Board. When
first questioned they expressed, and obviously truthfully, complete ignorance of the move.
Since some of those who were uninformed have been in the close counsel
of the administration for the last few days, this is taken to mean that
President Roosevelt has assumed personal charge of many aspects of the
emergency situation.
1677
posed law against gold hoarding frightened even those who had not thought
of tnemselves as hoarders, but who suddenly recalled a few odd coins left
over from Christmas presents which had not been spent. . . .
The importance of the return-flow of gold to the Federal Reserve Bank
was emphasized by bankers, who pointed out that the $65.000,000 recovered so far this week could be used as the basis for the issuance of
$162,500,000 of Federal Reserve notes or a very much larger amount of
the new currency.
One Man Has $700,000.
No final count of the amount of gold turned in to commercial banks
could be had, but several large transactions were reported. One large
bank received an inquiry from a man who said he had $700,000 in gold
he wished to turn into currency. A hoard of $35,000 was brought into the
Empire Trust Company by an individual who had evidently had the metal
in a safe deposit box. Officials of the bank said that the hoarder was not
a regular customer of the bank and had not obtained the gold from their
institution.
The metal was accepted by the banks under the ruling of the Secretary
of the Treasury providing for "trust accounts" for new deposits.
In furtherance of the move to encourage the return of hoarded gold the
New York Stock Exchange sent out word to all its members asking for a
list of all persons who had withdrawn balances in the form of gold at any
time since the first of tne year. The step was taken purely on the initiative
of the Exchange, it was said, without any request for such action having
been received from the authorities. It was thought likely in brokerage
circles that the Exchange had decided to be prepared in case such a request
were received.
Railroads Co-operate in Aiding Patrons in Bank
Holiday--Accept Checks for Passenger and Freight
Charges Upon Proper Identification—Joint Statement of Pennsylvania and New York Central
Roads.
From the New York "Journal of Commerce" of March 7,
we take the following:
Railroads reported little difficulty thus far in handling their freight and
passenger business in the normal manner, despite the banking holiday.
Checks continued to be accepted for freight and passenger charges from
these patrons who have previously been in the habit of paying in this
manner. Other regular customers and those whose credit and identity
could
readily be ascertained were also allowed to pay their bills by check.
At the offices of the railroads it was indicated that in the event that scrip
were issued by the Now York banks, it would, of course, be accepted in
lieu of regular currency. The two major railroads entering New York.
the Pennsylvania and the New York Central,issued a joint
statement yesterday as follows:
Central Issues Statement.
"In reply to statements made in one of the New York morning papers, it
was reliably stated by an official speaking for the New York Central and
Pennsylvania RR, companies that, in accordance with the usual practice,
the railroads are extending credit to and accepting checks from responsible
patrons on the established credit lists in payment of freight and passenger
charges and, further, were making every reasonable effort to facilitate the
movement of freight and passengers during this emergency by accepting
checks from patrons who may be believed to be responsible."
It is expected that a meeting of representatives of all eastern carriers
will be held to-day for the purpose of deciding uniform action to cover the
present situation. The Inter-State Commerce Commission will probably be
asked to rule on the matter of demurrage charges during the present crisis.
In railroad circles, it is assumed that the Commission will recognize the
present situation as a real holiday in which event no demurrage would be
charged.
Under the present rules shippers are allowed two days in which to claim
their shipments. In the event they do not claim it in this time, a charge
of$2 a car is made for the next four days, and $5 per day for each succeeding
day.
•
Acceptance Varies.
The acceptance of checks where this had not been done before varies with
the individual carriers. A number of them have been very lenient wherever
identification of the issuing party could be established. "The New Haven's
plans are predicted on continued business in the usual manner so far as
possible and meeting credit situation as conditions justify," said officials
of the company.
Steamship companies have instructed their agents throughout the
country to accept checks in payment for passenger tickets. Scrip properly
issued under authority of local Clearing House Associations also will be
accepted as will postal money orders. The American Express Co. announced
yesterday that it is continuing to cash travelers checks all over the world so
that no inconvenience may be inflicted upon travelers who have gone abroad
depending upon such checks to meet their foreign expenses. Checks and
scrip also will be accepted by steamship companies in payment for freight
charges.
In its issue of Mar. 10 the "Times" said in part:
Spurred by fear of public exposure and the threat of fines and imprisonment, gold hoarders scurried back to the Federal Reserve Bank and its
member institutions yesterday to redeposit the yellow coins that they had
lately stampeded to withdraw. Including the little plies of gold pieces
brought in by frightened individuals and the boxes of gold and gold certificates turned in by member banks in response to the orders of the Secretary of the Treasury, a total of $30,000,000 in gold was poured into the
central bank, swelling the total recovery of gold since the start of the week
to about $65,000,000.
Officials of the Reserve Bank and of commercial banks all over the city
were deluged with inquiries as to how gold could be returned. All who
asked were informed that they could bring the gold in,if they acted promptly
without incurring any penalty and could obtain in exchange Federal Reserve
notes. Those with gold were advised to return the metal to tne banks
from which they got it and to leave their names and addresses.
Steady Stream of Depositors.
Much of the gold returned by individuals yesterday came back intact
in the bags and paper-rolled stacks in which it had been withdrawn, but
nevertheless each coin was counted before the deposit slip was approved.
The repentant hoarders displayed a good deal of agitation, but they were
received courteously by the guards of the Reserve Bank and came out with
an evident air of relief when they had disposed of their dangerous treasure.
Christmas Coins Turned In.
They came with little bags and brief cases, paper bundles, boxes or
bulging pockets. Many had only a few coins, while others had bags of
thousands Of dollars of double-eagles. The drastic character of the pro-
Inter-State Commerce Commission Indicates Effect of
Moratoriums on Collection of Freight Charges—
Bank Holidays Are Legal Holidays and Hence
May Be Excluded From Computation of Periods of
Credit.
In a notice issued March 6, the Inter-State Commerce
Commission indicated the effect of present moratoriums and
bank holidays upon the collection of freight charges. The
Commission states that it considers that bank holidays and
bank moratoriums are legal holidays within the meaning of
rules previously prescribed by it, under which "Sundays and
legal holidays, other than Saturday half-holidays may be
excluded from the computation of the periods of credit."
The Commission's announcement follows:
INTER-STATE COMMERCE COMMISSION
WASHINGTON.
March 6 1933.
Notice to the Public:
Numerous inquiries have been made of the Commission as to the effect
of the present moratoriums and bank holidays upon the collection
of
freight charges.
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Financial Chronicle
As a general rule the carrier has the option to demand payment of freight
In advance or on delivery. (Wadley Southern Ry. Co. v. Georgia, 235
U. S. 651). But the carrier may within reasonable and non-discriminatory
limits waive its rights to prepayment or to retain the goods until payment
has been made. (In re Transportation of Company Material. 22 I. 0. C.
439; in re Express Rates, Practices, Accounts and Revenues, 24 I. C. C.
380).
By Section 3 sub-section (2) of the Inter-State Commerce Act, no carrier
by railroad subject to the Act shall deliver or relinquish possession at
destination of any freight transported by it (government freight excepted)
until all tariffs, rates, and charges thereon shall have been paid, except
under such rules and regulations as the Commission may from time to time
prescribe to govern the settlement of all such rates and charges, and to
prevent unjust discrimiaation.
The following portions of the rules prescribed by the Commission under
the section quoted, now in effect, bear upon this subject:
"The carrier, upon taking precautions deemed by it to be sufficient to
assure payment of the tariff charges within the credit periods herein specified, may relinquish possession of freight in advance of the payment of the
tariff charges thereon and may extend credit in the amount of such charges
to those who undertake to pay such charges, such persons herein being
called shippers, for a period of 48 hours computed as hereinafter set forth.
"Where retention of possession of freight by the carrier until the tariff
rates and charges thereon have been paid will retard prompt delivery or
will retard prompt release of equipment or station facilities, the carrier,
upon taking precautions deemed by it to be sufficient to assure payment of
the tariff charges within the credit period herein specified may relinquish
possession of the freight in advance of the payment of the tariff charges
thereon and may extend credit in the amount of such charges to shippers
for a period of 96 hours to be computed as hereinafter set forth. . . .
"Sunday and legal holidays, other than Saturday half holidays, may be
excluded from the computation of the periods of credit.
"The mailing by the shipper of valid checks, drafts, or money orders,
which are satisfactory to the carrier, in payment offreight charges within the
credit periods allowed such shipper may be deemed to be the collection of the
tariff charges within the credit period for the purposes of these rules.
Regulations for Payment of Rates and Charges. 171 I. C. C.268. 281-2.
The Commission considers that bank holidays and bank moratoriums are
legal holidays within the intendment of the above rule.
Conference between representatives of the carriers and the Commission
has Indicated that no amendment or modification of the existing credit rules
previously prescribed by the Commission is necessary or would be helpful
at the present time.
GEORGE B. McGINTY,
Secretary.
Income Tax Returns Required Despite Bank "Holidays"
—Government Holding Checks for Collection.
Banking holidays alone will not be regarded as sufficient
excuse for failure to file income tax returns due March 15,
the Internal Revenue Bureau announced on Feb. 28, according to a dispatch on that date to the New York "Times,"
from which we also quote:
"No extension of time for filing income tax returns will be granted
merely on the ground that a holiday has been declared for banks in the
taxpayers' community." the Bureau said.
"It is Important from the Bureau's standpoint that returns be filed on
or before March 15." the statement continued, "first, to enable the Bureau
to proceed with its work of auditing returns, and, secondly, to determine
as early as possible the amount of revenue the Government eventually
will receive under the income tax provisions of the new revenue act."
At the same time it was pointed out by the Bureau that if the taxpayer
files an income tax return on or before March 15 1933 he is thereby relieved
of the penalty imposed by Section 291 of the Revenue Act of 1932, which
provides that 25% shall be added to the tax in case of any failure to make
and file a return within the prescribed law.
Informally it was stated that the income tax retprn might be accompanied by a check for at least one-quarter of the amount due, even though
there had been a banking holiday. The check would be collected later
or In case of failure to collect it would have to be made good by the taxpayer.
If the taxpayer can show to the satisfaction of the Commissioner of
Internal Revenue that payment of the tax on March 15 would work a real
hardship or be actually Impossible, the Commissioner may grant a postponement up to 18 months, the postponed tax bearing interest. It was
expected that many applications for postponement would be made this year.
At the Custom House here, William Duggan, Internal Revenue Collector
of the 2d New York District, made this comment on the Washington order:
"We're taking cash, postoffice money orders and checks already. Taxpayers who are filing their returns ahead of the final limit are enclosing
checks in many cases. Inasmuch as they have until the 15th to make
payment, we are in no position to refuse their check payments.
"By the 15th we believe this difficulty will have been ironed out, so,
Irrespective of the ruling from Washington, payment by check probably
would have worked out all right."
Bank Checks May Be Used for Income Taxes, but
Internal Revenue Bureau Asks Effort to Pay in
Cash.
The following (Associated Press) is taken from the New
York "Times":
Checks on temporarily closed banks are being accepted for income
tax payments provided a "diligent and conscientious effort" has been made
to furnish either cash or a postoffice money order,
was explained to-day at the Internal Revenue Bureau, however, that
checka were not being taken on banks that have failed.
"The taxpayers should file their returns in the usual manner on or before
March 15, and, if possible, submit either cash or postoffice money orders
In payment of the tax shown thereon," the Bureau said.
"In this emergency the Bureau feels that taxpayers should make
diligent and conscientious effort to send with their return at least the first
quarterly instalment in cash or postoffice money order.
"If it is not possible for the taxpayers to make payment by means of
cash or postoffice money orders,they should send their checks, even though
the banks are temporarily closed due to the banking holiday.
"The collectors will clear the checks if it is possible to do so.
"However,if the collectors are unable to clear the checks within a reasonable time, it will be necessary to call upon the taxpayers for new remittances."
March 11 1933
Savings Banks Open to Permit Limited
Withdrawals.
Savings banks in New York were opened yesterday
(March 10) for small withdrawals to meet urgent needs of
depositors. This was in accordance with.an announcement
on March 9 by Henry R. Kinsey, President of the Savings
Banks Association of the State of New York. Several sayings banks did this on the previous day (March 9) permitting
withdrawals up to $10 said the New York "Times" of March
10, from which we also quote:
New
York
The commercial banks and trust companies will be open to-day for the
same limited facilities as yesterday—that is, financing food supplies for the
city, advancing funds to meet payrolls at least in part, cashing small personal checks for essentials, receiving new deposits, and other specified
functions permitted by Secretary of the Treasury Woodin.
President Roosevelt's new proclamation last night extending the national
banking holiday until further notice, continued in effect Secretary Wondin's
regulations providing for restricted operation of such banks as choose to
take advantage of the exceptions to the moratorium permitted by the
Treasury Department.
Announces Savings Bank Move.
Mr. Kinsey's statement follows on the withdrawals permitted by the
savings banks:
With the permission of the State Banking Board, the savings banks of
this State, pending the end of the holiday, will pay out to their depositors
small sums vitally necessary for their living expenses. This Is in accord with
'
Secretary Woodin's authorization allowing small withdrawals for immediate
needs.'"
Mr. Kinsey also issued a statement last night expressing gratification
that for the first time the savings banks have been brought into direct contact with the Federal Reserve Board. He said:
"Under the bill adopted to-day we have been given direct contact with
the Federal Reserve Board for the first time. We are now placed in position
to rediscount our government bonds directly with the Federal Reserve
Banks. That means that that portion of our portfolios consisting of government bonds is to all practical purpioses cashed. That's about the only
tie up we have in this picture.'
All of the 139 savings institutions in the State would come under the
'
classification of "sound," Mr. Kinsey said. Be added he could see no
restrictions to their opening when the bank holiday had been declaredl'at
an end.
Use of Safe Deposit Boxes Reported Normal.
The New York "Times" of March 7 said:
Bank depositors had access yesterday to their safety deposit boxes in
both commercial banks and savings banks, as was shown by a survey of the
safety vault situation. Banks further accommodated depositors to the
extent of furnishing change.
All banks questioned about conditions reported that the crowds seeking
cnange or access to their safety boxes were quiet and orderly.
The Corn Exchange Bank Trust Co. described the crowds going to safety
vaults as "normal." The National City Bank estimated that the number
ofsafety deposit box customers yesterday was about the same as on a normal
day three weeks ago.
The Bowery Savings Bank and the Emigrant Industrial Savings Bank
opened their safety vaults during the regular hours, and both institutions
reported average crowds of normal business days.
The Sterling National Bank and Trust Co., Broadwty and Thirty-ninth
Street, one of the few banks that remained open on Saturday despite the
bank holiday, was closed yesterday.
There were no crowds at the doors of most banks at the opening hour
yesterday, as there were last Saturday.
Clearing Houses All Over New York
State.
The New York State Bankers Association through its
Executive Manager issued the following announcement on
Mar. 7:
Banks Forming
A further step In the strengthening of the banking structure of New
York State and the facilitation of plans being formulated for the reopening
of the banks was taken to-day by the Emergency Committee of the New
York State Bankers Association when it undertook to convert the various
county bankers associations into Regional Clearing Houses.
In carrying out this plan the Emergency Committee sent the following
telegram to the forty county bankers associations:
We earnestly recommend immediate conversion of all County Bankers
Associations into Regional Clearing Houses In order to secure uniform action
of banks in the various steps which will be necessary to bring banking
operations back to normal and to strengthen the confidence of the public
in the plans which will have to be put into effect. The Committee will
banks in
then deal with your clearing house as representing all Roberts your comand State
munity. Chief National Bank Examiner, L. K.
Broderick concur in this recommendation.
Superintendent J. A.
it has already had splendid response to this
The Committee states that
recommendation. Broome County, Delaware County, Queens County,
Schenectady County and 'Dogs County (joining with Bradford County,
Pennsylvania), organized regional clearing houses on Monday. Word has
already been received from Montgomery, Richmond, Otsego, Schoharie,
Chanango and Genesee counties that meetings called for this purpose will
be held to-day. Fulton. Madison, Rockland, Seneca, St. Lawrence,
Suffolk, and Tompkins counties meet to-morrow. Others are expected to
follow quickly.
Fire Insurance Companies to Observe Moratoria.
The National Board of Fire Underwriters issued the following this week:
That payment of all losses over $100 In amount be withheld for the
statutory term of 30 or 60 days, as provided in the policy, has been suggested to its member companies by the National Board of Fire Underwriters, which comprises 216 stock fire insurance companies doing 85%
of the fire insurance business in the United States.
This action affects business in the States where banking moratoria have
been, or may be declared. It is regretted by the companies but the fact
that their otherwise ample funds are tied up in the banks makes it necessary.
Volume 136
Financial Chronicle
George S. Van Schaick, New York State Superintendent
of Insurance, Says Every Effort Will Be Made to
Protect Rights of Policyholders in Present Emergency—Scrip to Be Accepted for Premiums.
The following statement was issued on March 7 by George
S. Van Schaick, Superintendent of Insurance of the State
of New York:
The unprecedented public emergency is such that it was essential that
some administrative official should be clothed with adequate power and
authority to meet the emergency in the field of insurance. Through the
co-operation of the Governor and the legislative leaders this power has
been generously and promptly given to the Superintendent of Insurance.
It will be exercised solely for public protection.
From time to time rules and regulations will be promulgated by the
Superintendent of Insurance pursuant to the authority given. No announcement can be made at this time as to such rules and regulations, but
since the question has been raised it may be stated unqualifiedly that there
Is no intention on the part of the State Department of Insurance or any
company under its jurisdiction to suspend or delay the payment of death
claims. Section 70 of the Insurance Law provides that a corporation
may be organized for the purpose of making insurance "(1) upon the lives
or the health of persons and every insurance appertaining thereto, and to
grant, purchase or dispose of annuities." The primary purpose, therefore,
of a life insurance company is the payment of death claims and annuities.
Life insurance companies will continue to carry out these primary functions.
The public may be assured that every proper effort will be used to preserve and protect the rights of policyholders and to keep their contracts
have
in force. The companies under the jurisdiction of this Department
State
adopted a cooperative attitude in this respect. Scrip issued under
accepted for premiums or other
or National authority or approval will be
in premium
obligations to the companies. The inconvenience and hardship
minimized
payments resulting by reason of the banking holiday will be
require it.
by reasonable latitude being extended where circumstances
Restrictions on Loans on Life Insurance Announced
by G. S. Van Schaick, New York State Superintendent of Insurance.
Life insurance companies in New York State are restricted
in the present emergency in the making of loans, or in the
paying of cash surrender values in the case of life insurance
policies, under regulations issued on Mar.9 by George S. Van
Schaick, State Superintendent of Insurance. The amount
of such loans is not to exceed $100 in any one case, except
in instances where there is extreme need. The following is
the Superintendent's announcement:
COPY OF RULES AND REGULATIONS AFFECTING THE BUSINESS OF LIFE INSURANCE COMPANIES ISSUED BY GEORGE
S. VAN SCHAICK, SUPERINTENDENT OF INSURANCE OF
THE STATE OF NEW YORK.
Pursuant to the authority vested in me under Chapter 40 of the Laws of
1933. I. George S. Van Schaick, Superintendent of Insurance of the State of
New York, hereby make the following rules and regulations imposing upon
insurers transacting the business of life insurance conditions which are
necessary and desirable to maintain sound methods of insurance and to
safeguard the interests of policyholders, beneficiaries and the public generally during the present emergency:
1—Loans and Cash Surrender Values.
Until further order of the Superintendent of Insurance no life insurance
corporation organized under the laws of the State of New York and no foreign
corporation authorized to transact the business of life insurance in the State
of New York shall as to any pending or future application under any life
insurance policy or annuity contract issued in the United States, or in any
territory or possession thereof, pay the cash surrender value of any such
policy or contract or make any loan on the security of any such policy or
contract, except as hereinafter provided;
(a) Loans. Any such corporation may make a loan on any such policy
or contract solely for the purpose of having such loan applied to the payment
of any premium or any obligation of the policyholder, to such corporation.
• (b) Cash Surrender Values. Any such corporation may allow a cash
surrender value for any such policy or contract solely for the purpose of
having such cash surrender value applied to the payment of any premium
or any obligation of the policyholder, to such corporation.
1679
The Connecticut General Assembly to-day enacted special legislation
giving the Insurance Commissioner authority to promulgate rules relating
to the cash surrender and loaning powers in relation to insurance policies.
The power is vested in the commissioner during a period of emergency when
declared by the Governor. In response to inquiry Senator Blackall stated
that the suspension of death claims payments had not been discussed.
Added grace for insurance premium payments are allowed by Hartford
life companies. Aetna Life will accept checks and add thirty days' extenConsion to policyholders whose expirations occur during the emergency;
14 to Mar.
necticut Mutual Life has specified all premiums falling due Jan.
17. Connecticut Mutual grants 30 days'
14 may have extension to Apr.
Mutual also
extension on all premiums that have fallen due. Phoenix
allows the usual
allows 30 days' extension on premiums. Travelers also
grace period and an extension of 30 days longer.
Massachusetts Insurance Commissioner Acts to Prevent
Insurance Lapses.
Associated Press advices from Boston, March 8 stated:
had been
Merton Brown, Insurance Commissioner, to-day said plans
no person
completed by practically all insurance companies under which
during the
would be defaulted for nonpayments on insurance policies
conditional
banking holiday. He said companies would either issue
Mr. Brown made
receipts or extend the periods of grace for payments.
night
the statement upon his return from a hurried trip to New York last
for a conference with insurance company executives.
Massachusetts Legislature Adopts Bill Giving Wide
Powers to Insurance Commissioner.
following from Boston Mar. 9 is from the New York
The
"Journal of Commerce."
Massachusetts
A bill creating a dictatorship over the insurance business in
Ely. who
was adopted by the Legislature to-day and signed by Governor
measure folurged its passage as an emergency measure. Passage of the
Commissioner
lowed a threatened filibuster in the Senate. Insurance
consulted
Brown, who is given dictatorial powers by provisions of the bill,
this
with a number of representatives of Insurance Commissioners late
w.
afternoon. New regulations will be made ready to-night or to-morro
of payThese rules will cover loans issued on life policies and the question
benefits will conment of premiums. It is expected payments on death
tinue without change.
Order Issued by Kansas Commissioner of Insurance
Grants 30 Days' Grace on Insurance.
On March 7 Associated Press adviees from Topeka,
Kans., said:
Charles F. Hobbs, State Commissioner of Insurance, issued an order
late to-day directing all life insurance companies doing business in Kansas
-day additional period of grace on all premium payments
to grant a 30
due on or after March 4. The order, it was explained, also would apply
where such grace periods as are provided in policies expired on or after
March 4.
It was the first order to be issued under the law, enacted yesterday by
the Legislature. giving Commissioner Hobbs, subject to approval by
Governor Alfred M. Landon, dictatorial powers over insurance companies.
North Carolina Gives Commissioner Extra Power
to May 1
From the New York "Journal of Commerce" of Mar. 10
we take the folowing:
A bill has been passed by the North Carolina General Assembly and became law upon ratification which grants to the Insurance Commissioner
power to put into force regulations deemed necessary to safeguard interests
of policyholders, creditors and bondholders of insurance companies. It
allows him to provide for extension of periods of grace for life insurance
policies in times of emergency. The act, introduced by Representative
Johnson of Pender, will expire by limitation at midnight next May 1.
Texas Senate Votes Relief on Insurance—Permits
Extension of Period of Grace on Premiums Until
Aug. 31 1933.
The following from Austin, Tex., March 7, is from the
New York "Journal of Commerce":
.—Extreme Need Cases.
2
(a) Ordinary Insurance. Nothing hereinabove provided shall prevent
any such corporation from allowing, in addition to the loan and cash surrender values provided for in apragraph 1 hereof, a cash surrender or loan
value not in excess of one hundred ($100.00) dollars in the aggregate on all
policies and contracts on the life of any one individual in any case of extreme need.
(b) Industrial Insurance. In respect to any policy of Industrial Life
Insurance,in any case of extreme need on the part of the holder ofsuch policy
ascertained through personal investigation of the circumstances by a representative of the company, any such corporation may pay or allow for the
relief of such industrial policyholder a cash surrender value for any of its
industrial policies on the life of such policyholder or on the life or lives of
any member or members of such industrial policyholder's immediate
family.
3.—Sums on Deposit.
Subject to the foregoing, no such corporation shall pay any sum deposited
with it or allowed to accumulate in its possession under any policy or contract except that such corporation may pay the interest on any such sum at the
due date thereof, and any principal sum which shall become due without
the exercise of the option of withdrawal, and may continue to pay installments of such litIMB according to contracts now or hereafter in force.
GEORGE S. VAN SCHAICK,
Superintendent of Insurance.
Dated: Mar. 9. 1933.
The Texas Senate has passed finally a bill giving relief to insurance policyholders and insurance companies during the present financial emergency.
It authorizes the State Insurance Commissioners to extend the period of
The money
grace to Aug. 31 1933 for payment of insurance premiums.
of policyholders is now tied up by the bank moratorium.
companies are forced to continue
Under the terms of the bill insurance
full payment of death, sickness and accident claims.
A move was made to amend the bill to limit salaries of executives of
companies which would obtain relief. Senator T. J. Holbrook said that
one insurance official last year received $54.000 in salary and another
received 158.500.
Proposal was made that maximum salary for an insurance company
executive be $10,000 annually. If a company refused to reduce its salaries
to that figure during the period the new law would be effective, it would be
denied the benefits of the Act.
Senator Grady Woodruff said he believed that if the State limited an
insurance policyholder's withdrawals from his insurance company, it
should also limit the salaries paid officers of that company. He criticized
the State Insurance Department saying it could have reduced salaries of
insurance officials and thereby have effected premium reductions. The
amendment was defeated.
Bill Passed by Connecticut General Assmtbly Gives
Power to Insurance Commissioner to Make Rules
on Cash Surrender, Loaning Powers.
From Hartford Mar. 9 a dispatch to the New York
"Journal of Commerce" said:
To Last Only for Crisis.
From an Albany (N. Y.) dispatch March 7 we take the
following regarding legislation enacted by the New York
State Legislature to cope with the present banking emergency:
Texts of Banking and Insurance Bills Passed by New
York Legislature, Giving Emergency Powers to
Governor and Boards for "Safety of the People"—
1680
Financial Chronicle
Following is the text of the bill giving broad powers to the
Banking
Board of the State during the present emergency:
AN ACT
In relation to the powers of the Banking Board organized
and existing
pursuant to Section 10-A of the banking law during the existing
emergency.
The People of the State of New York, represented in Senate
and Assembly, do enact as follows:
Section 1. It is hereby declared that a public emergency exists affecting the health, comfort and safety of the people of the State
arising out
of the abnormal credit and currency situation in the State of
New York
and in the nation; the demand on the part of depositors
in corporations
and with persons under the supervision of the Superintende
nt of Banks
for the payment of their deposits in currency
or in gold; the declaration
of a bank holiday in this State and in other States, and
by the Federal
Government; the problems attendant upon the reopening of such institutions as are now closed by Gubernatorial or Presidential
order; and other
facts and circumstances curtailing and hampering the ordinary
process
of exchange, trade, commerce and industry. Therefore,
in the public
Interest the necessity of the provisions hereinafter prescribed
is hereby
declared as a matter of legislative determination.
Section 2. During the period of the emergency as hereinafter
defined,
the Banking Board existing under the provisions of Section
10-A of the
banking law shall have the power by a two-thirds vote of
all its members
to suspend any provision of the banking law in whole
or in part. It
shall also, in addition to such powers and not in limitation
thereof, during
such period and with like vote have power to adopt,
rescind, alter and
amend rules and regulations inconsistent with and in
contravention of any
law: (1) To safeguard the interests of depositors and
stockholders in
corporations and depositors with persons subject to the
supervision of
the Banking Department (2) to prescribe and regulate methods
of conducting business by such persons or corporations; (3) to
prescribe what
Is for such persons and corporations a safe or unsafe condition
for
transacting business.
In the discretion of the Banking Board such suspension, resolution,
rule, or regulation, may be published in a manner to be prescribed
by it
or may be otherwise brought to the attention of the person or corporation affected, in a manner to be prescribed by the Board.
Section 3. Any resolution, rule, or regulation, of the Banking Board
adopted or made pursuant to the provisions of this act shall supersede
any
provision of law inconsistent therewith.
Section 4. Any such suspension of law, resolution, rule,
or regulation of the Banking Board enacted or adopted pursuant
to this act shall
become ineffective upon the termination of any such
emergency, and
thereupon all the provisions of law which may have been
suspended or
superseded pursuant to this act shall become effective.
Section 5. The period of the emergency herein provided
for shall be
from the date of the taking effect of this act until such
date as the
Legislature may, by joint resolution, designate to be
the termination
thereof, or, if the Legislature be not in session, the
date so designated
by a proclamation of the Governor.
Section 6. Violation by any person or corporation
of the provisions
of this act or of any resolution, rule or regulation
adopted by the Banking Board pursuant hereto, shall be a misdemeanor.
Section 7. The Board by a two-thirds vote and after a
hearing may
remove any director, officer, or other employee of a
corporation subject
to the supervision of the Superintendent of Banks, who
wilfully violates
any resolution, rule, or regulation adopted by such
Board.
Section 8. If any section, part, or provision of this act
shall be declared unconstitutional, or invalid, or ineffective, by
any Court or
other authority of competent jurisdiction and power,
such declaration
shall not affect any other section, provision, or part
thereof.
Section 9. This act shall take effect immediately.
Powers to Governor.
The bill giving the Governor unusual powers during the
period of the
bank emergency follows:
AN ACT
In relation to the powers of the Governor relating to
corporations, associations, societies, orders, partnerships and individuals
subject to the
supervision of the Superintendent of Banks and the
Superintendent of
Insurance.
The People of the State of New York, represented in
Senate and Assembly, do enact as follows:
Section 1. It is hereby declared that a public emergency
ing the health, comfort and safety of the people of the exists affectState of New
York and in the nation; the demand on the part of
depositors in corporations and with persons under the supervision of the
Banks for the payment of their deposits in currency Superintendent of
or in gold; the
declaration of a bank holiday in this State and in other
States, and by
the Federal Government; the problems attendant upon the
such institutions as are now closed by Gubernatorial or reopening of
Presidential
order; the inability of corporations, associations, societies,
orders, partnerships and individuals subject to the supervision of the
Superintendent
of Insurance to carry on in a normal manner the functions of
their
businesses; and other facts and circumstances curtailing and
the ordinary process of exchange, and the ordinary conduct of hampering
the business
of insurance and of trade, commerce and industry. Therefore,
in the
public interest, the necessity of the provisions hereinafter
prescribed is
hereby declared as a matter of legislative determination.
Section 2. During the period of emergency hereinafter
described, the
Governor shall have power by proclamation filed in the Executive
Chamber
to suspend any provision of the banking law or of the
insurance law in
whole or in part. In addition thereto, and not in limitation
thereof, he
shall also have power by proclamation to make, rescind or
amend any
rule or regulation affecting in any way any or all corporations,
associations, societies, orders, partnerships and individuals subject to the
supervision of the Superintendent of Banks or Superintendent of Insurance.
Section 3. Such proclamation shall have the effect of law; may
be
Inconsistent with any existing law and shall supersede any provision of
law, or any order, rule or regulation made by any public officer,
board,
or agency inconsistent with such proclamation.
Section 4. The act or acts of the Governor in issuing any proclamation declaring or extending a bank holiday in this State is hereby ratified
and confirmed in all respects.
Section 5. Any such suspension of law, rule or regulation provided
for in such proclamation shall become ineffective upon the termination
of such emergency; and thereupon all the provisions of law which may
have been suspended or superseded pursuant to this act shall become
effective.
Section 6. The period of the emergency herein provided for shall be
from the date of the taking effect of this act until such date as the Leg's.
March 11 1933
lature may by joint resolution designate to be the termination
thereof or,
if the Legislature be not in session, the date so designated
by a proclamation of the Governor.
Section 7. Violation by any corporations, associations, societies,
orders,
partnerships or individuals of the provisions of this act
or of any
proclamation adopted by the Governor pursuant thereof shall
be a misdemeanor.
Section 8. If any section, part or provision of this act shall
be declared unconstitutional, invalid, ineffective, by any Court or any
other
authority of competent jurisdiction and power, such declaration shall
not
affect any other section, provision or part thereof.
Section 9. This act shall take effect immediately.
Bill Affecting Insurance.
The following is the text of the bill giving extra powers to
the Superintendent of Insurance during the banking emergency:
AN ACT
in relation to the powers of the Superintendent of Insurance during
the
existing emergency.
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section I. It is hereby declared that -a public emergency exists affecting the health, comfort and safety of the people of the State, growing
out of the abnormal disruption in economic and financial processes, the
declaration of a banking holiday by this State and by other States and
by the Federal Government the inability of insurers to carry on in a
normal and ordinary manner the functions of their business owing to
the situation now existing with reference to currency, specie and checks,
and other facts and circumstances curtailing and hampering the conduct
of the business of insurance in a normal and ordinary manner.
Section 2. During the period of the emergency as hereinafter defined,
the Superintendent of Insurance shall have the power to suspend any.
provision of the insurance law in whole or in part. In addition to such
powers and not in limitation thereof, he shall also have power during
such period to make, rescind, alter and amend rules and regulations imposing any condition upon the conduct of the business of any insurers
which may be necessary or desirable to maintain sound methods of insurance and to safeguard the interests of policyholders, beneficiaries and
the public generally during such period. In the discretion of the Superintendent of Insurance, such rule or regulation may be published in a
manner to be prescribed by him or may be otherwise brought to the
attention of the insurer affected in a manner to be prescribed by the
Superintendent of Insurance.
Section 3. Such rule or regulation may be inconsistent with existing
law, and in such event shall supersede such existing law inconsistent
therewith.
Section 4. Such rule or regulation of the Superintendent of Insurance
adopted pursuant to this act shall become ineffective upon the termination
of such emergency and thereupon all the existing law which may have
been suspended or superseded pursuant to this act shall become effective.
Section 5. The period of the emergency herein provided for shall be
from the date of the taking effect of this act until such date as the
Legislature may, by joint resolution, designate to be the termination
thereof or, if the Legislature be not in session, the date so designated by
proclamation of the Governor.
Section 6. Any violation of the provisions of this act, or of any rule
or regulation adopted by the Superintendent of Insurance thereto, shall be
a misdemeanor.
Section 7. The word "insurers" as used in this act includes all corporations, associations, societies, orders, partnerships and individuals to which
any provision of the insurance law is applicable.
Section 8. Saving clause.
Section 9. Enacting clause.
Secretary Woodin Abandons Plan for National Scrip—
Issuance of New York State Scrip Canceled—Organization of Emergency Certificate Corporation.
In a Washington dispatch Mar. 8 to the New York
'Times," it was stated that the proposal to issue scrip for a
national exchange medium was thrown into the discard on
that day by Secretary of the Treasury Woodin. The dispatch also said in part:
The Administration had been working to that end for several days and
apparently reached the final decision in conferences which ended early in
the day.
Mr. Woodin at first said, "off the record," that scrip issues would not
be sanctioned by the Government, but after being pressed for a statement
for publication he finally said:
011
"All right, shoot. I indicated in the regulation pertaining to scrip issues
through clearing house certificates that scrip might not be sanctioned."1
He referred to Regulation No. 12, authorizing the use of scrip but providing that the permission for issuance "may be revoked in the event that
national plan to meet the existing emergency is proposed by the Secretary
a
of the Treasury."
PPP
In the Mar. 9 issue of the samiiTpa m•- was stated that
—T— it
the proposed issuance of State scrip was canceled on Mar.8
when Governor Lehman of New York announced that Secretary of the Treasury Woodin had revoked the permission
granted Tuesday morning (Mar. 7) for the Emergency Certificate Corporation to issue a uniform temporary money for
New York State. From the same account in the "Times" of
Mar. 9, we quote:
At 10:45 p.m. Governor Lehman issued the following statement:
"I am in receipt of the following official telegram from tho Treasury Department in Washington:
Secretarfrd Treasury hereby revokes
-.--Watee
granted to corporation of the State of New permission to issue cer
York organized to provide adequately secured temporary medium of exchange. Tower of revocation is
exercised in accordance with regulation issued March 7, 1933, by Secretary
under authority conferred upon him by President's proclamation of March 6.
JAMES H. DOUGLAS,
Assistant Secretary of Treasury.
111Seen!As7End-of Scrip-Plan.
The revocation which was taken in New York to mean that the Treasury
Department had definitely decided upon a course of action other than that
of Issuing scrip money, brought to practically nothing the creation of the
Volume 136
Financial Chronicle
Emergency Certificate Corporation, of which former Governor Alfred E.
Smith became president yesterday.
While the State scrip plan,formulated by Morris L. Ernst as a member of
the State Banking Board, thus came to nothing, Governor Lehman said the
corporation would continue in existence at least for a while, in order that
it might offer its services to the Treasury Department and otherwise give
what aid it could in the present situation.
Governor Lehman would make no comment on the telegram from Washington. Earlier in the day he had perfected the plans for the operation
of the corporation by naming ten more directors, making the full total
fifteen.
The New Directors.
The additional directors of the corporation were announced as follows:
Edward G. Miner, of Rochester.
Charles McCain, chairman of the board of the Chase National Bank.
Henry T. Werner of Buffalo.
William E. Gillespie of Albany.
Colonel William N. Dykman of Brooklyn.
Jerome J. Hanauer, formerly of Kuhn, Loeb & Co.
Huntington B. Crouse of Syracuse
Samuel Leidesdorf, accountant, of New York City
Bruce Babcock of Binghamton.
Henry Johnson of the Manufacturers Trust Co.
The first meeting ofthe skeleton directorate,composed offormer Governor
Smith. former Governor Nathan L. Miller and Lincoln Cromwell, acting
President of the Merchants Association, three of the five previously named
by Governor Lehman, was held at the Executive's home yesterday
The only announcement that followed the meeting was that Mr. Smith
had been named president of the corporation and that Governor Lehman,
at least for the time being, would be its only official spokesman
Opening of Federal Reserve Banks To-day Under Order
to Secretary of Treasury Woodin Signed by President Roosevelt.
President Roosevelt yesterday (March 10) gave Secretary
of the Treasury Woodin power to allow the reopening of the
nation's banks under close supervision of the Government and
immediately word went forward for some banks to resume
business. Associated Press advices from Washington to the
New York "Sun" of last night reporting this, added:
Secretary Woodin subsequently announced that the 12 Federal Reserve
banks will be opened to -morrow. They are directed to make loans secured
by direct obligations of the Government and to conduct such other business
as is necessary to make sure of the transactions by banks for necessities.
In an executive order designed to speed opening of the banks, President
Roosevelt outlined the procedure banks shall follow to obtain licenses
from the Treasury.
Applications to reopen are to be filed with the Federal Reserve banks
In each district by their member banks,and,upon approval by the Secretary
of the Treasury, the licenses will be issued by these banks.
In outlining his own plans for action under the executive order, Secretary
Woodin said it must be ascertained that banks allowed to open would be
able to remain open before licenses were issued.
State banks will be permitted to open after the proper State authorities
have approved their applications.
Gold Embargo Maintained.
The executive order maintained the clamp upon the movement of gold
that the President laid down in his original banking proclamation of five
days ago.
In the wake cf the statements by Mr. Woodin and the executive order,
word came that new money legalized by the banking act of yesterday
was being rushed to banks in different sections of the country to allow
them to open.
The Treasury at the same time began dispatch of numerous telegrams
allowing banks to reopen, but no announcement was to be made here as
to the names, locations or dates.
Secretary Woodin said after the issuance of the order that "immediate
action has been taken which will make possible the resumption of banking
operations in substantial volume at a very early date."
Text of President Roosevelt's Order.
The text of President Roosevelt's banking order follows:
"By virtue of the authority vested in me by section 5 (B) of the act
of Oct. 6 1917 (40 stat. L. 411) as amended by the act of March 9 1933,
and by section 4 of the said act of March 9 1933, and by virtue of all other
executive authority vested in me. I hereby Pique the following executive
order:
"The Secretary of the Treasury is authorized and empowered under
such regulations as he may prescribe to permit any member bank of the
Federal Reserve System and any other banking institution organized under
the laws of the United States, to perform any or all of their usual banking
functions, except as otherwise prohibited.
"The appropriate authority having immediate supervision of banking
institutions in each State or any place subject to the jurisdiction of the
United States ts authorized and empowered, under such regulations as such
authority may prescribe, to permit any banking institution in such State
or place,other than banking institutions covered by the foregoing paragraph,
to perform any or all of their usual banking functions, except as otherwise
prehibited.
"All banks which are members of the Federal Reserve System, desiring
to reopen for the performance of all usual and normal banking functions,
except as otherwise prohibited, shall apply for a license therefor to..the
Secretary of the Treasury.
"Such applications shall be filed immediately through the Federal Reserve
banks. The Federal Reserve Bank shall then transmit such applications
to the Secretary of the Treasury.
"Licenses will be issued by the Federal Reserve Bank upon approval
of the Secretary of the Treasury. The Federal Reserve banks are hereby
designated as agents of the iikcretary of the Treasury for the receiving of
application and the issuance of licenses in his behalf and upon his instructions.
"Until further order, no individual, partnership, association or corporation. including any banking institution, shall export or otherwise remove
or permit to he withdrawn from the United States or any place subject to the
jurisdiction thereof, any gold coin, gold bullion, or gold certificates, except
in accordance with regulations prescribed by or under license issued by
the Secretary of the Treasury.
"No permission to any banking institution to perform any banking
functions shall authorize such institution to pay out any gold coin, gold
1681
bullion or gold certificates except as authorized by the Secretary of the
Treasury, nor to allow withdrawal of any currency for hoarding, nor to
engage in any transaction in foreign exchange except such as may be undertaken for legitimate requirements, for reasonable traveling and other personal requirements, and for the fulfillment of contracts entered into prior
to March 6 1933.
"Every Federal Reserve Bank is authorized and instructed to keep
itself currently informed as to transactions in foreign exchange entered
into or consummated within its district and shall report to the Secretary
of the Treasury all transactions in foreign exchange which are prohibited.
(Signed) FRANKLIN D. ROOSEVELT."
"
Permits Sent to Banks.
The order was regarded by the Administration as definitely paving the
way for immediate reopening of banks on a limited oasis and full operation
of the tanks which are declared sound by as early as the beginning of the
next week.
Immediately after the order was issued word came that authorizations
were going forward for some banks to reopen and that new money,legalized
by yesterday's banking act, was being forwarded to enable them to resume
business.
All information concerning the manner in which the money was being
distributed was refused, however.
The banks when they reopen will conduct all usual business, but the
restrictions prohibiting hoarding will continue.
When reopened there will be no restrictions on withdrawals of deposits
or upon checking accounts, but Treasury officials declined to set a definite
day upon which a considerable number of institutions will resume normal
operations.
Meanwhile, the Internal Revenue Bureau was drafting regulations to
govern the situation which would arise Wednesday when the income tax
falls due and at which time not all banks may have reopened.
A special dispatch to the "Sun" yesterday also said:
The broad general outlines of the program for the reopening of sound
banks as agreed upon in conference by Secretary Woodin and President
Roosevelt at noon to-day were as follows:
1. All member banks desiring to reopen will file their applications for
Federal license with the Federal Reserve Banks in their district.
2. Operating licenses will then be issued or withheld by the Secretary
of the Treasury on the basis of information which has already been gathered
as to the financial standing of these institutions or of information which
may yet have to be obtained by further investigation.
3. Nonmember banks will apply to the proper authority within their
State for permission to reopen, and the Executive order authorizes these
State officials to grant or withhold their permission in accordance with the
rules and regulations to be prescribed in the Presidential order.
Woodin's Statement.
In a statement further clarifying the procedure, Secretary Woodin to-day
said:
"The reopening of the banks of the country is not to be accomplished in
a few hours. In general the process will be that the Secretary of the Treasury
will receive through the Federal Reskrve Banks applications for reopening
from banks which are members of the Federal Reserve System.
"State banks may make applications to the proper authorities within
their States.
"There must be no mistakes made. When the banks open they must
remain open. Physical difficulties must be overcome and the most impedant of these is getting currency to banks to allow them to function.
"Under the orders of the Secretary of the Treasury banks have the
authority now to disburse the amounts required for such necessities as
medicines, food, pay rolls and maintenance of employment, and all banks
must co-operate to disburse such funds as may be necessary for these
purposes.
"It is not possible now to say at what time tne sound banks of the country
will be open and operating at full speed, but most of them should resume
within a few days."
Indicating on March 7 that the Federal Reserve Banks
were authorized to function as United States fiscal agents,
but were temporarily barred from open market operations,
rediscounts or loan activities, the Washington correspondent
of the New York "Journal of Commerce" on that date
(March 7) said:
Federal Reserve Banks are not to be permitted during the period of the
bank holiday to engage in their normal activities in open market transactions, rediscounts or loans. They are to confine their operations to those
of fiscal agents of the Government under the terms of a regulation issued
to day by Secretary of the Treasury Woodin for the carrying out of the
Roosevelt proclamation.
It was presumed here that the order for the opening of these banks was
inspired by the desire of the Treasury to pave the way for March 15 refinancing operations. Possibility was seen that further regulations would
be issued to permit the banks to buy Governments directly, if this became
necessary.
$690,000,000 Is Maturing.
On March 15, 6690,000,000 in certificates must be retired and another
block of security marketed, Present conditions make it virtually impossible
to predict what form the financing will take, what will be the rate, and what
will be the amount.
The Government's need for money is heavily in excess of the amount
required for the retirement of the maturing security.
The Federal Reserve Banks in effect already have been, to a large degree,
financing the Treasury indirectly. Securities sold to member banks and
other institutions by the Treasury have been absorbed in open market
operations by the Federal Reserve Banks. Officials here, however, had
anticipated that the situation would be much improved by March 15, and
that possibly Governments then would be sold in a more normal manner
to the member banks.
Intra-System Operation.
Provision also is made in to-day's order for the purely intra-system
operations, such as the telegraphic transfer of security from one Federal
Reserve Bank to another.
Included in other normal finance operations of the Reserve Banks are
the distribution of currency, the lending of money to the Treasury on one
to five days' certificates and the acquisition of Government securities.
Functions of the Reserve Banks which would not be performed under
the regulation apparently would include the purchase of Government
securities in the open market, rediscounting and making of loans to member
banks and other operations not directly connected with Treasury affairs.
1682
Financial Chronicle
•Loans Authorized by Reconstruction Finance Corporation in January $143,393,847
-Total Advances
Covering Period of Operation $1,788,666,009-Re•
Payments $347,237,110
-Loans to Banking Institutions-Details of Loans to Railroads.
During the month of January the Reconstruction Finance
Corporation authorized loans of $143,393,847, and made
advances of $128,395,294. Repayments in January totaled
$28,037,263. Details of the operations of the Corporation
covering the period from the time of its organization on
Feb. 2 1932 to Jan. 31 were made available by the Corporation on Feb. 20, this showing advances in cash of $1,788,666,009, and repayments of $347,237,110. Of the
total advances 8,386 loans aggregating $947,086,197.44 were
authorized to 5,196 banks and trust companies; 866,088,816.99 of this was subsequently withdrawn or canceled;
$30,868,066 remained at the disposal of the borrowers on
Jan. 31, and $850,129,313 was disbursed by them, of which
$253,652,935 had been repaid. The report also shows that
105 loans aggregating 8340,435,093 were authorized to 62
railroads. $264,740 of this had been canceled or withdrawn,
$48,275,529.88 remained at the disposal of borrowers and
$291,894,823.12 had been disbursed to them, of which
$11,881,070.71 had been repaid. Details of the railroad
loans are given in the report, which was made public as
follows:
The Federal Government has advanced $1.788,666,009.12 in cash
through the Reconstruction Finance Corporation, according to figures
made public to
-day. Repayments total $347,237,110.60.
Cash advances were as follows:
By the Secretary of Agriculture to farmers for crop loans
from funds furnished him by the Reconstruction Finance
Corporation
$64,204.503.06
To the Secretary of the Treasury for purchase of stock of
Home Loan banks
2,520,000.00
By the Reconstruction Finance Corporation:
To borrowers under Section 5
1,502.786,544.22
To borrowers for self-liquidating projects
18,497,000.00
To States for relief purposes
144,744,097.72
To borrowers under Section 201d
1,472,276.29
By Regional Agricultural Credit Corporations
54.441.587.83
Repayments were as follows:
To Secretary of Agriculture by crop loan borrowers
$18,161,633.70
To Reconstruction Finance Corporation:
By Section 5 borrowers
327,805,691.78
By Section 201d borrowers
257.805.96
To Regional Agricultural Credit Corporations
1,011,979.16
Banks had been advanced $894,047,350.42 as of Jan. 31. and had repaid
$278,743,498.20. Loans authorized to banks totaled $1,005,837.784.49,
of which $71,062,376.55 had been withdrawn or canceled and $40,728,057.52
remained to the credit of the borrowers.
Total loans authorized up to the close of business on Jan. 31 to borrowers
under Section 5 of the Reconstruction Finance Corporation Act were
$1,707,733,473.67. Of this $88,382,643.80 had been withdrawn or canceled and $116,564,285.65 remained to the credit of borrowers.
Advances authorized to 39 States and two territories for relief purposes
up to Feb. 15 totaled $169.458.948.22.
As of Feb. 15 agreements to advance $155.809,134.24 to aid in financing
self-liquidating projects had been made, of which $18,497,000 had been
disbursed to the borrowers.
REVIEW OF OPERATIONS OF THE RECONSTRUCTION FINANCE
CORPORATION.
The Corporation was organized Feb. 2 1932. The Reconstruction
Finance Corporation Act authorized it to acquire resources of $2,000,000,000. later increased by the Emergency Relief and Construction Act to
$3,800,000.000. Of this amount it had acquired $1,395,000.000 In cash
up to the close of business on Jan. 311933, all of which had been furnished
by the Treasury of the United States.
This financing had been accomplished by selling to the Treasury, as
required by the Reconstruction Finance Corporation Act, the entire authorized capital stock of $500.000.000 and by borrowing $895,000,000 from
the Treasury on notes. The notes thus far issued bear 3%% interest,
°and the Corporation had paid the Treasury $7,608.904.11 in interest up
to the close of business on Oct. 31. An additional $6,976,027.26 had
accrued but was not due on Jan. 31.
With the resources placed at its disposal by the Treasury the Corporation has engaged in the following operations:
I. Under Section 2 of the Reconstruction Finance Corporation Act.
This section required the Corporation to make available to the Secretary
of Agriculture up to $200.000,000, to be used by him to make loans or
advances to farmers where emergencies existed as a result of which they
were unable to obtain loans in the usual way for crop production purposes
In 1932.
The Corporation paid over to the Secretary of Agriculture $75,000.000
In cash, out of which he made loans aggregating $64,204,503.06 to 507,632
farmers. These loans were made in every State except Rhode Island,
and averaged $126.48 each. Repayments received by the Secretary up
to the close of business on Jan. 31 totaled $18.161.633.70.
The Secretary of Agriculture had as of Jan. 31 returned to the Corporation $15.000,000 of the $75,000,000 in cash advanced to him.
Section 2 authorized the Secretary to make only "loans for crop production during the year 1932" in cases where he might find an existing
emergency making it impossible for farmers to obtain such loans. This
arrangement was a temporary one and the Secretary was authorized to
make loans for only one purpose, crop production.
When Congress enacted the Emergency Relief and Construction Act in
July of last year it authorized the Reconstruction Finance Corporation.
by Section 201e of that Act, to furnish through the creation of a regional
agricultural credit corporation In each of the 12 Federal Land Bank Districts, wider credit facilities directly to farmers and stockmen. The
Corporation was required to supply a minimum of $3,000,000 of capital
to each of the regional credit corporations created by it, and for that purpose was authorized to use so much of the $200,000.000 originally alloted
to the Secretary of Agriculture as might be available,
A regional crdit corporation has been created in each of the 12 Land
.Bank districts, and their operations are reviewed in Section VI.
Section 2 of the Reconstruction Finance Corporation Act was amended
by Section 6f of the Federal Home Land Bank Act by the addition of
the following paragraph:
March 11 1933
In order to enable the Secretary of the Treasury to make payments
upon stock of the Federal Home Loan banks subscribed for by him in
accordance with the Federal Home Loan Bank Act, the sum of $125,000,000, or so much•thereof as may be necessary for such purposes, is
hereby allocated and made available to the Secretary of the Treasury out
of the capital of the corporation and (or) the proceeds of notes, debentures,
bonds and other obligations issued by the corporation. For the purpose
of this paragraph, the Corporation shall issue such notes, bonds, debentures, and other obligations as may be necessary."
• As of Jan. 31 the sum of $2,520,000 had been paid over to the Secretary
of the Treasury.
II.
Under Section 5 of the Reconstruction Finance Corporation Act.
Under this section the Corporation had, at the close of business on
Jan. 31 1933, authorized 10.731 loans aggregating $1,707,733,473.67 to
6.984 borrowers of the following classes:
8,386 loans aggregating $947,086,197.44 were authorized to 5,196 banks
and trust companies that were in operation at the time the authorizations were made. $66,088.816.99 of this was subsequently
withdrawn or canceled, $30,868,066.92 remained at the disposal
of the borrowers on Jan. 31. and $850,129,313.53 was disbursed
to them, of which $253.652,935.36 had been repaid.
592 loans aggregating $58.751,587.05 were authorized to receivers and
liquidating agents of 553 closed banks. $4,973,559.56 of this
had been withdrawn or canceled, $9,859,990.60 remained to the
credit of the borrowers and $43.918,036.89 had been disbursed to
them, of which $25,090.562.84 had been repaid.
1,042 loans aggregating $104.004,769.64 were authorized to 914 building
and loan associations. $3.516,054.42 of this was withdrawn or
canceled, $3,212.928.08 remained subject to call by borrowers,
and $97,275,787.14 had been disbursed to them in cash, of which
$11,757,213.62 had been repaid.
loans aggregating $13,276,302.85 were authorized to 18 livestock
147
credit corporations. $1,248,114.26 of this had been canceled or
withdrawn, $148,384.98 remained at the disposal of borrowers
and $11,879,803.61 had been disbursed to them, of which $5,242,488.08 had been repaid.
135 loans aggregating $84.263,431.66 were authorized to 102 insurance
companies. $3,635,237.87 had been canceled or withdrawn,
$11,614,422.88 remained at the disposal of borrowers and $69,013,770.91 had been disbursed to them, of which $6,072,844.06
had been repaid.
125 loans aggregating $3,721,103.08 were authorized to 15 agricultural
credit corporations. $42.875.80 of this had been withdrawn or
canceled. $65,647.85 remained subject to call by the borrowers
and $3,612.579.43 had been disbursed to them, of which $1.241,126.11 had been repaid.
105 loans aggregating $340,435,093.00 were authorized to 62 railroads.
$264,740.00 of this had been canceled or withdrawn,$48,275,529.88
remained at the disposal of borrowers and $291.894.823.12 had
been disbursed to them,of which $11,881,070.71 had been repaid.
The proceeds of these loans were to be used for the following purposes:
$47,945,483
For completion of new construction
For construction and repair of equipment and Dotsero Cutoff
by Denver & Rio Grande Western RR
13,550,000
To pay interest on funded debt
74.409,023
21.530.124
To pay taxes
To pay past due vouchers for wages, materials, &c
20,173.009
To pay principal of maturing equipment trust notes
21,865,342
To retire maturing bonds and other funded obligations
81,609,618
To pay loans from banks
37,793,900
To pay other loans
16,171,587
Miscellaneous
5.387,007
The loans authorized to each railroad. together with the amount disbursed to and repaid by each, is shown In the following table:
Authorized. Disbursed. Repaid.
$127,000 $127.000
Aberdeen & Rockfish RR
275.000
275.000
Alabama Tennessee & Northern RR
2.500,000 2,500,000
Alton RR
634,757
634,757
Ann Arbor RR. (receivers)
400,000
400.000
Ashley Drew & Northern Ry
67,125,000 39.126.244
Baltimore & Ohio RR
41,300
41,300
Birmingham & Southeastern RR
7,569,437 7,569,437
Boston & Maine RR
53,960
Buffalo-Union Carolina RR
549,000
Carlton & Coast RR
3,124.319 3,124,319 220,691
Central of Georgia By
500,000
188,801
Central RR. of New Jersey
5,916,500 5,916.500
76,500
Chicago & Eastern Illinois By
20,104,433 19.104.433 2,064,500
Chicago & North Western By
1,289.000 1.289.000
Chicago Great Western RR_ __ - - Chicago Milwaukee St. Paul & Pacific By.. 8,000,000 7,993.000
Chicago North Shore & Milwaukee RR-- 1,150.000 1.150,000
10,000,000 10,000,000
Chicago Rock Island & Pacific By
10,398.925 8,300.000
Cincinnati Union Terminal Co
*60,000
60.000
Columbus & Greenville By
53,500
53,500
Copper Range RR
6,350,000 2,605.500 500,000
Denver & Rio Grande Western RR
13,403,000 13,403,000
Erie RR
3,000
Eureka Nevada Ry
717,075
627,075 *90,000
Florida East Coast Ry.(recehers)
227,434
227,434
Fort Smith & Western By.(receivers)
15,000
Fredericksburg & Northern By
10.539
Midland By. (receivers)
Gainesville
354,721
354,721
Georgia & Florida By. (receivers)
13.915
13.915
Greene County RR
520.1100 260,000
520.000
Gulf Mobile & Northern RR
16,677
3,863.000 3,863.000
Illinois Central RR
6,500.000 5,447.000
Lehigh Valley RR
2,550.000 2,550.000
Maine Central RR
100,000
100.000
Maryland & Pennsylvania RR
Minn. St. Paul & Sault Ste. Marie By....,. 6,841.082 6,843.082 343.620
100.000
100.000
Mississippi Export RR
20,100,000 17,100.000
Missouri Pacific RR
99,200
99.200
Missouri Southern RR
785.000
785,000 785,000
Mobile & Ohio RR
1,070,599 1,070,599
Mobile & Ohio RR. (receivers)
25,000
25,000
Murfreesboro-Nashville By
20.499,000 15,600.000
New York Central RR
18,200,000 17.507,280 2,688,413
New York Chicago & St. Louis RR
New York New Haven & Hartford RR..- 700,000
29,500.000 27,500.000
Pennsylvania RR
3,000,000 3,000,000
Pere Marmfette By
3,975.207 3,975.207
Pittsburgh & West Virginia By
300.000
300,000
Puget Sound & Cascade By
7,995,175 7,995,175 2,805,175
St. Louis-San Francisco RR
17.684,450 17,684.450 790,000
St. Louis Southwestern By
200,000
200,000
Salt Lake & Utah RR.(receiver)
162,600
162.600
Sand Springs By
27,504
Southern By
14,751.000 14,751,000
147,700
Tennessee Central By
147700
*108,740
108,740
Texas Oklahoma & Eastern RR
30.000
30,000
Texas South-Eastern RR
*6,000
45.000
Tuckerton RR
Wabash By. (receivers)
14,825,000 14,825,000
4,366,000 4,266.069 1,303.000
Western Pacific RR
400,000
400,000
Wichita Falls & Southern RR
22,525
22.525
Wrightsville & Tennille RR
k •Denotes amount canceled or
withdrawn, instead of repayment.
Volume 136
Financial Chronicle
The Corporation has received information from the borrowing roads
showing the following distribution by States of $19,867,145.40 of the
$21,530,124 lent to pay taxes:
Minnesota
$258.919.00
1450.920.56
Alabama
Mississippi
68.934.57
1.315,773.52
Arkansas
Missouri
103,879.72
1,516.384.01
California
Montana
254,800.00
12,058.09
Colorado
2,863.532.45
15,000.00
New Jersey
Delawe
ar
New York
133,780.73
206.84
District of Columbia_
North Dakota
457,500.00
7.948.44
Florida
Ohio
873,804.59
175,419.71
Georgia
Oklahoma
2,582.876.34
1,210,914.27
Illinois
Pennsylvania
424,330.15
425,290.11
Indiana
223,601.00
South Carolina
17,828.60
Iowa
1.255,075.84
Tennessee
412.073.83
Kansas
Texas
Kentucky
11,962.84
7.100.00
485,000 00
Virginia
2,047.69
Louisiana
Wisconsin
4,137,182.50
163,000.00
Michigan
Federal income taxes amounting to $25.994.00 were also paid by the
borrowers out of money advanced for tax purposes.
109 loans aggregating $97,093,902.61 were authorized to 91 mortgage
loan companies. $2,760,942.22 had been withdrawn or canceled,
$1,843,354.60 remained to the credit of borrowers and 592.489.605.79
had been disbursed to them, of which $12,719,345.51 had been
repaid.
25 loans aggregating $6.973,000.00 were authorized to 16 Joint Stock
Land banks. $319,954.68 had been withdrawn or canceled. $3,971,846.77 remained at the disposal of borrowers and $2,681,198.55
had been disbursed to them, of which $74,166.06 had been repaid.
9 loans aggregating $29,000,000.00 were authorized to nine Federal
Land banks. $5,500.000.00 had been withdrawn or canceled,
54,700.000.00 remained to the credit of borrowers, and $18,800.000.00 had been disbursed to them. No repayments had been
received.
51 loans aggregating $22.646.085.34 were authorized to five of the Regional
Agricultural Credit Corporations created by the Reconstruction
Finance Corporation under Section 201e of the Emergency Relief
and Construction Act. None of this had been canceled or withdrawn,
52.004.113.09 remained to their credit, $20.641,972.25 had been
disbursed to them in cash, and they had repaid 564.796.43.
5 loans aggregating $482.001.00 were authorized to three credit unions.
$32.348.00 had been withdrawn or canceled, and $449,653.00 had
been disbursed to borrowers, of which $9,143.00 had been repaid.
The following table shows the number of applications for loans made
under Section 5 in each of the last six months:
Jan. Dec. Noe. Oct. Sept. Aug.
Banks and trust companies (incl.
receivers)
633 462 484 515 899
551
Building and loan associations
44
78
61
62 105 140
Regional Agricultural Credit Corporations
0
0
54
9
0
0
9 11
Insurance companies
6
8
14
9
Mortgage loan companies
15
21
10
16
8
14
Credit unions
o
o
0
2
1
0
Federal Land banks
o
1
o
o
o
o
3
2
Joint Stock Land banks
4
2
3
2
Agricultural Credit Corporations
29
14
21
5
12
6
Livestock Credit Corporations__ _
7
10
19
32
5
3
Railroads (including receivers)
7
14
12
10
3
5
700 1.150
689 756 576 601
In July 1,281 applications were received, in June 1,32, in May 1,329,
in April 1.527. in March 1.176. and in February 166.
III.
Under Section 1 of the Emergency Relief and Construction Act.
Up the close of business on Feb. 15 the Corporation had made $169,458.948.22 avallarile to 39 States and two Territories for relief purposes,
and of that amount $144,744,097.22 had been disbursed in cash as of
that date.
Advances for relief purposes are authorized under two sub-sections of
Section 1. Advances authorized under Sub-section c are to be repaid to
the Federal Government by deductions from future Federal contributions
to States to aid in constructing roads. Under that sub-section advances
totaling $150,063,667.22 had been authorized. Advances under Subsection e are made to political subdivisions of States and are to be repaid
by the subdivisons. Under that sub-section $19,395,281.00 had been
authorized to be advanced. The following table shows the amount made
available to States under both sub-sections as of Feb. 15:
State—
,Sub-Section (C). Sub-Section (e).
Total.
Alabama
$1,753,631.00
$1,753.631.00
Arizona
847,700.00
847,700.00
Arkansas
2,869,519.00
2.859,519.00
California
2,255,455.00
2,255,455.00
•
Colorado
2,201,048.00
2,201,048.00
Florida
2,668,153.00
2.668,153.00
700,659.22
Georgia
700.659.22
Idaho
64e,095.00
649,095.00
Illinois
38,493,478.00
26,241,478.00 512,252.000.00
Indiana
2,114,004.00
2,114,004.00
Iowa
1,134,851.00
1,134,851.00
Kansas
1,805.995.00
1,805,995.00
Kentucky
2,563,151.00
2,563,151.00
Louisiana
7,602,506.00
7.602,506.00
37,000.00
Maine
37,000.00
Michigan
10,027,474.00.
2,111. -- 766
-0
00
12,143.474.00
Minnesota
1.706,779.00
1.706,779.00
2,759,425.00
2.759,425.00
MississIPPi
Missouri
2,450.341.00
2,450,341.00
1,175,546.00
Montana
1,175.546.00
200,567.00
200,567.00
Nevada
1.366,603.00
New Hampshire
1,366.603.00
172,000.00
172,000.00
New Mexico
6,100.000.00
6,100,000.00
New York
3,036.000.00
3.0.16,000.00
North Carolina
100.680.00
210,289.00
109,609.00
North Dakota
3,851.601.00
10,213,105.00
6.361.504.00
Ohio
2,178,308.00
2,178,308.00
Oklahoma
1.047.73800
1,047,738.00
Oregon
26,705.446.00
Pennsylvania
26.705,446 00
1.700,800.00
1,700,800.00
South Carolina
.1.393,995.00
1.393,995.00
South Dakota
1,875,088.00
1.875,088.00
Tennessee
4.135,134.00
4,135,134.00
Texas
1,998,589.00
1,998.589.00
Utah
2.776.130.002,776,130.00
Virginia
1.075.000.00
2,621,700.00
1,546,700.00
Washington
4,823,441.00
4,823,441.00
West Virginia
8,304.770.00
8,304,770.00
Wisconsin
307,435.00
307,435.00
Hawaii
360,000.00
360,000.00
Puerto Rico
IV. Under Section 201a of the Emergency Relief and Construction Act.
Up to the close of business on Feb. 15 the Corporation had agreed to
advance $155,809,134.24 to aid in financing construction of self-liquidating
Projects. $737,284.37 of this had been canceled or withdrawn. $136.574,849.87 remained to the credit of borrowers, and $18,497,000.00 had
been advanced in cash.
1683
The funds disbursed included $13,000,000 to finance construction of
a combined rail and highway bridge across the Mississippi at New Orleans:
$2,327,000 for construction of a new water pumping station by the City
of Chicago: 350.000 to the City of Prescott. Ariz., for additions to its
water system, $720,000 to the Middle Rio Grande Conservancy District
at Albuquerque, N. M., for use on a flood control and irrigation project;
$2,016,000 to the Metropolitan Water District of Southern California for
construction of an aqueduct to carry water from the Colorado River to
Loa Angeles and other southern California cities; $100,000 to the City of
Gulfport. Miss., for construction of a cotton compress and storage warehouse: $50.000 to the City of Wilmette, Ill., for construction of a water
works and sewage system; and $10,000 to the City of Sandusky, Ohio,
for construction of a sludge basin for its water system.
The Corporation has also bid upon and been awarded $143,000 of the
bonds of the Roanoke Rapids, N. C., Sanitary District: $45.000 of the
bonds of the Town of Sanford, N. C., and $36,000 of the notes of the
Poinsett County, Ark., Drainage District No. 7. Funds will be advanced
to the borrowers in the near future.
In the case of other commitments of the Corporation to finance construction of self-liquidating projects, the purchase of bonds is awaiting
request by the borrowers, the working out of legal details, the taking by
applicants of action necessary to authorize issuance of their bonds, and
similar prerequisites to actual advancement of funds.
V. Under Section 201d of the Emergency Relief and Construction Act.
As of Jan. 31 the Corporation had authorized 17 loans to 11 borrowers
under this section aggregating 555.057,722.87 to finance the carrying and
orderly marketing of agricultural commodities produced in the United
States. $310,211.94 of this amount had been canceled or withdrawn,
$53,275,234.64 remained at the disposal of borrowers, $1,472,276.29 had
been disbursed to them in cash, of which $257,805.96 had been repaid.
VI. Under Section 201e of the Emergency Relief and Construction Act.
The Corporation has created a Regional Agricultural Credit Corporation
in each of the 12 Federal Land Bank districts, with 21 branch offices.
These regional corporations are making loans directly to farmers and
stockmen for agricultural purposes, including crop production and the
raising, fattening, and breeding of livestock. Individuals, partnerships
and corporations engaged in the business of farming or the raising,fattening
and breeding of livestock are eligible for loans from the Credit Corporations.
Processors, canners, packers and co-operatives are ineligible.
Section 201e requires the Corporation to furnish each Regional Corporation with a minimum of $3,000,000 in capital, which may be increased
if necessary. The capital of four corporations (those in the Eighth, Ninth,
Eleventh, and Twelfth Land Bank districts) has been increased to
55,000.000.
The first loan by a Regional Corporation was made on Oct.8. and up
to the close of business on Feb. 15 $54,441.587.83 had been disbursed
in cash, of which 51.011,979.16 had been repaid.
On Feb. 10, the latest date for which figures are available, 34,471 applications for loans totaling $57.800,000 had been approved upon which
funds had not been disbursed, and 41,532 applications for loans totaling
$64,602.000 were awaiting action.
Section 201e authorizes the Regional Credit Corporation to rediscount
with the Reconstruction Finance Corporation and the Federal Reserve
banks and the Federal Intermediate Credit banks. The Reconstruction
Finance Corporation had, as of Jan. 31 1932. made 51 loans to five Regional
Corporations aggregating $22,646,085.34 for that purpose.
Loans to Additional Railroads Approved by Inter-State
Commerce Commission from Reconstruction Finance Corporation—Restrictions Fixed on Loan to
Frisco System—Loan Denied to Vicksburg Bridge
Terminal Co.—Soo Line Loans Extended—Additional Applications Filed, Including $7,000,000
Sought by New York Central.
The Inter-State Commerce Commission (as stated in our
issue of March 4, p. 1481) has approved loans aggregating
$12,384,644 to seven railroads from the Reconstruction
Finance Corporation, bringing the total loans approved to
date to approximately $408,517,572 to 79 roads. The roads
and the amount of the loans now approved are as follows:
Chesapeake Beach Ry
Chicago Rock Island & Pacific Ry
Galveston Houston & Henderson RR
Minneapolis & St. Louis RR
Missouri Pacific RR
St. Louis-San Francisco Ry
St. Louis Southwestern Ry
$425,000
3,718.700
1.061,000
1.076.594
2,234,800
3,000.000
832.550
Applications have been filed by the following roads for
approval of loans from the Reconstruction Finance Corporation in the amounts shown:
Akron Canton & Youngstown Ry., 'New York Central RR.,$7,000.000
Santa Fe Northwestern Ry.,$228.,824
$325,000
Gulf Mobile & Northern, $500.000
Southern Pacific RR., $1,200,0001
Louisiana Southern By., $10,000
Tonopah & Goldfield RR.,$30.000
Details in connection with the loans are as follows:
Chesapeake Beach Ry.
The Chesapeake Beach Ry. tiled with us on Sept. 20 1932 an application
to the Reconstruction Finance Corporation for a loan.
The Application.
The application as initially filed requested a loan of $900,000 for a
period of three years, the proceeds to be used for the following purposes:
(1) Extending the applicant's rail line by ferry across Chesapeake Bay from Chesapeake Beach. Md., to Hudson,
(a) Construction of two ferry boats
$500,000.00
(b) Construction of docks and piers at both ferry terminals, and dredging at eastern terminal
207.522.71
(c) Payment for eastern terminal site
30,000.00
(2) Payment of past due miscellaneous obligations of applicant_ 109.461.92
(3) Working fund
50.000.00
$896,984.63
On Dec. 6 1932 the applicant reduced the amount of the loan requested
to 8525.000. It stated that the shipbuilders to whom it proposes to award
the contract for the construction of the two ferry boats have agreed to
accept therefor the sum of $287.477.29 in cash and $212,522.71 in note
to run for a period of three years and to be secured by a closed second
1684
Financial Chronicle
mortgage on all of the existing property now owned and hereafter to be
acquired by the applicant.
In addition the shipbuilders will give a good and sufficient performance
bond to guarantee the completion of the boats in accordance with the
terms and specifications of the contract and to provide for their delivery
free from liens and encumbrances of any kind.
The second amendment to the application, filed Jan. 26 1933, further
reduced the amount applied for to $425,000, all to be used to defray, In
part, the cost of extending the applicant's rail line by ferry across Chesapeake Bay. The application as amended states that the shipbuilders will
accept $212,500 in second mortgage bonds, that an additional $100,022.71
of second mortgage bonds will be sold, and that the purchaser will be
given certain of the outstanding stock of the applicant now in the hands
of the trustee controlling the company. Under the present proposal the
estimated cost of the new project, or $737,522.71, would be financed in
the following manner:
Proposed Loan
By Second
from Finance
Mortgage
Corporation.
Bonds.
Construction of two ferry boats
$287,500.00
$212,500.00
Construction of terminals
107,500.00
100,022.71
Eastern terminal site
30,000.00
$425.000.00
$312,522.71
The applicant states that it has exhausted all means within its power
to secure the funds, in whole or in part, from other sources. Bankers who
considered the project a sound investment have advised the applicant
that they would give it consideration when the market for railroad securities has improved to an extent that permits their sale to the public.
The applicant is In default of its fixed interest obligations and is therefore ineligible to become a party to the "Marshalling and Distributing
Plan, 1931," of the Railroad Credit Corporation.
Transportation Properties and Operations.
F The applicant was incorporated under the general laws of Maryland
On March 7 1896. It succeeded to the rights and franchises of the Washington & Chesapeake Beach Ry. whose property was sold under foreclosure proceedings on Dec.10 1895. The property of the applicant includes
a single-track steam railroad extending from Chesapeake Junction, D. 0.,
to Chesapeake Beach, Md., a distance of 28.32 miles. The applicant
also owns 5.38 miles of yard tracks and sidings. Freight traffic is interchanged with the Baltimore & Ohio RR. at Chesapeake Junction, D. 0.,
with the Pennsylvania RR. near Marlboro, Md.,and with the Washington
Baltimore & Annapolis Electric RR. at District Line, D. C.
The equipment owned includes five locomotives, two freight-train
cars. 28 passenger-train cars, and four work cars. The principal commodities carried are forest products, cement, fertilizer, tobacco, coal,
crushed stone, gravel, sand, and merchandise. While the passenger
traffic of the applicant has steadily declined during the 10
-year period
1922 to 1931. the freight traffic, on the other hand, has steadily increased
during the same period, except for the year 1931. The tonnage of revenue
freight transported increased from 15,053 tons in 1922 to 72.230 tons in
1930. In 1931 it amounted to 29.974 tons.
Necessities of the Applicant.
Due to the decline in the applicant's passenger traffic, which in the past
had accounted for the major portion of the revenues, it is badly in need
of new sources of revenue. The applicant has experimented in various
ways in an effort to stimulate and regain its lost passenger traffic, but
without success. Deficits in income available for the payment of interest
have occurred annually trom 1923 to 1931 inclusive, with the exception
of the year 1929, when the active management of the applicant was changed.
In that year a survey of possible sources of new revenue was made and
the applicant concluded that an extension of its line by ferry accross Chesapeake Bay to the portion of Maryland commonly called the "Eastern
Shore" would develop a sufficient amount of new freight and passenger
traffic to put the line on a very profitable basis. On Aug. 1 1930 we issued
a certificate of public convenience and necessity authorizing the applicant
to establish ferry service across Chesapeake Bay betwen Chesapeake
Beach and a point on Trippe's Bay, near Hudson, Md. Chesapeake Beach
Ry. Co. Ferry, 1661. C. 0.293.
. The Claiborne-Annapolis Ferry Co. brought a suit in equity in the
Supreme Court of the District of Columbia to set aside our certificate
and order, and enjoin the applicant from proceeding thereunder. A final
decree dismissed the bill and on appeal the decree was affirmed. Claiborne
Annapolis Ferry Co. v. United States et at, 285 U. S. 382.
The applicant now seeks funds in order to proceed immediately with
the construction of the ferry line accross Chesapeake Bay, thereby fulfilling a pressing need for additional and shorter trans-bay service. It
will be unnecessary in this report to review the evidence upon which we
issued our certificate of public convenience and neceesity in 1930 for this
ferry extension. Tne applicant shows that the general business depression
during 1930 and 1931 has not resulted In any decrease in trans-bay business
as shown by reports on file with the Public Service Commission of Maryland. From data submitted by the applicant showing average daily traffic
counts of motor vehicles at representative points on the lower eastern
shore of Maryland, it appears that vehicular traffic has increased 197.4%
between 1926 and 1931. The increase in traffic in 1930 over 1929 was
31.6% and in 1931 the increase over 1929 was 48.3%.
The applicant states that It will require two 900-SHP Diesel-driven
double-ended ferry boats, length 197 feet, approximate displacement
910 gross tons, with a capacity of 60 motor vehicles and 200 passengers
each. The estimated cost of construction of thw two boats is $500,000.
The western terminal will necessitate the construction of a 3,000-foot
trestle, a 120
-foot pier, and a ferry slip 200 feet long. The eastern terminal will consist of a 150
-foot pier, a 50
-foot trestle, a 120
-foot ferry
slip, 2,000 feet of bulkhead, a 3.000-foot concrete highway, a 100,000
gallon oil tank, and approximately 350,000 cubic yards of dredging. The
application contains a detailed statement of the materials and labor entering
into the construction of these terminals, the estimated cost of which is
$207,522.71 at present-day prices. These estimates have been reviewed
by our Bureau of Valuation which believes them to be reasonable.
An amount of $30,000 is requested to cover the cost of acquiring title
to 100 acres of land known as the Seward Farm, whihc is now being held
expressly for the applicant's ferry site at Iludson. Md. The applicant
states that the owners will not sell a part of the property, thus making it
necessary to purchase the entire tract, which is the only available waterfront land on the eastern shore with respect to distance from the western
terminal, proximity to the town of Hudson, and direct connection with
paved highways.
The applicant has miscellaneous past-due obligations totaling $109,461.92
which it now proposes to handle without recourse to borrowing therefor
from the Finance Corporation.
Security.
As security for the loan the applicant offers a new first mortgage lien
upon all its property now owned and to be acquired, including the property
of the proposed ferry line extension.
March 11 1933
On Dec. 31 1932 the long-term debt of the applicant consisted of $1,000,000 of first mortgage 5% gold bonds issued Jan. 1 1898, due July 1
1923, of which $998,000 was outstanding and $2,000 was held in its treasury.
Both principal and all accrued interest on the outstanding bonds are
carried as matured unpaid. The applicant states that only 995 of these
bonds are available for cancellation and believes that the remaining five
have been lost or destroyed without ever having been negotiated by the
company. Included among its loans and bills payable are four unsecured
demand notes. dated prior to March 15 1912, issued to David H. Moffatt,
Thomas F. Walsh and Charles Cavender for moneys advanced, aggregating
$133,375. These notes are also held by William V. Hodges, trustee. The
accrued interest unpaid on all three of these obligations to Aug. 31 1932
amounts to $3,089,236.
Under the proposed reorganization of the financial structure of the
applicant the $1,000,000 of first mortgage bonds, the $,789,057 Judgment
and the $133,375 of demand notes, together with all accrued Interest
unpaid on these obligations, are all to be surrendered, cancelled and discharged of record without the issuance of any bonds or the payment of
any moneys to William V. Hodges, trustee.
For the 11-year period 1921 to 1931, railway operating revenues of the
applicant averaged $140,800, railway operating expenses $139,971, net
railway operating income a deficit of $5,390. non-operating income $668.
Deductions from gross income, exclusive ot interest, averaged, $11. income
available for the payment of interest a deficit of $4,733, interest on funded
and unfunded debt $106.626, and net income a deficit of $111,359. In
none of the years of this period did the applicant earn a net income and
in only three, 1921, 1922, and 1929, did it earn any income available
for the payment of interest.
Operations for the year 1932 resulted in an income of $610 before the
payment of interest, as compared with the year 1931, when there was a
deficit of $13,187 in such income. For the first six months of 1933 income
available for the payment of interest is estimated at $16,090. Interest on
funded and unfunded debt for 1932 amounted to $107,304.
The cash balance of the applicant on Dec. 31 1932 was $4.893. The
applicant estimates that its cash balances as of March 31 1933 and June 30
1933 will be $10,393 and $16,893. respectively. These estimates reflect
additional revenues of approximately $18,000 expected to be derived from
the handling of material for State highway work during the months of
February, March, April and May.
The improvement in operating results for 1932 is occasioned by the
applicant's cancellation, late in 1931, of a disadvantageous trackage agreement it had with the Baltimore & Ohio RR. The latter company used
the tracks of the applicant at Chesapeake Junction in interchanging traffic
with the Washington By.& Electric Co., paying for such uge on a per-car
basis which netted the applicant approximately $300 annually. By
cancelling the contract and performing this business itself on a per-ton
rate basis, the applicant has increased its revenues $18,000 per annum,
which it states vrill remain constant.
The applicant proposes to effect a saving of $6,000 per year In its transportation costs by reducing its passenger-train mileage through the operation
of a gas car in connection with the proposed ferry service. With the
accomplished increase of $18,000 in revenue, plus such other increase as
will accrue to its rail haul due to the operation of the ferry, and giving
effect to its contemplated reduction in operating costs, the applicant confidently expects to operate on a self-supporting basis.
As a result of a comprehensive study of the traffic available to the
Proposed ferry line, the applicant forecasts average annual operating
revenues ot $365,952, operating expenses $186,781, taxes $15,000, depredation on terminals and marine equipment of $32,500, and income available
for payment of interest $131,671. These estimates are based on an assumed
10% use of the vehicle capacity of the ferry during the winter season and
a 30% use during the summer season.
The applicant points out that had the ferry extension been In operation
and the carrier not burdened by the unfavorable cotitract mentioned
above, the combined operations of the railway and the ferry during the
five-year period 1927 to 1931 would have resulted in an average net income
of $86,507 during this period. This figure excludes accrued Interest on
the obligations which the applicant intends to cancel on reorganization,
but includes interest on the loan originally requested.
By our order of Nov.1 1932. we turther extended the time for commencing
and completing the construction essential to the establishment of the
proposed ferry service to May 1 1933,and Dec. 31 1934, respectively. The
applicant is anxious to start the construction on the docks and piers and
perform the dredging, thereby furnishing employment for approximately
100 men. The construction of the boats and equipping the same will
require about 40 weeks and furnish employment for from 150 to 450 men.
On Oct. 11 1932 the Clalborne-Annapolis Ferry Co. filed a protest
against the approval of the loan herein applied for by the applicant. The
reasons set out in the protest` are that the loan would be contrary to the
purposes of the Reconstruction Finance Corporation Act; that the appli
cant has no legal authority to engage in a general ferry bisinees; that the
applicant's estimates with respect to service, operating revenues, and
operating expenses are unsound; that the Finance Corporation will not
be adequately secured; and that the Inauguration of the proposed ferry
service will materially injure the existing service of the Clalbornc-Annapolis
Ferry Co. The operating revenues and net profit of the latter company
for the years 1924 to 1931 Inclusive and for the first eight months of
1932 are as follows:
Net
Operating
Net
Operating
Revenues. Profit.
YearYearRevenues. Profit.
$16,145 1929
1924
$157,272
$359.509 $125,869
102,072
11,908 1930
1925
185.866
393,418
104.043
1926
6.759 1931
209,799
388,402
13,062
277,604
1927
61.284 1932(8 months). 218,314
130,550
1928
310,979
Conclusions.
We conclude:
1. That we should approve a loan of not exceeding $425,000 to the
Chesapeake Beach By. Co. by the Finance Corporation for terms not to
exceed three years from the respective advances thereon, the proceeds to
be used for the following purposes:
s) To defray in part the cost of construction of two ferry boats_ _$287,500
b) To defray in part the cost of construction of two ferry terminals 107,500
c) To purchase of land at eastern terminus
30,000
i
2. That the applicant should pledge with the Finance Corporation as
collateral security for the loan not less than $425,000, principal amount, of
bonds to be issued under a now closed mortgage constituting a paramount
first lien upon all of its property now owned and hereafter to be acquired.
3. That before any advance upon the loan be made, the applicant
should furnished to the Reconstruction Finance Corporation and to us
satisfactory proof of the unconditional surrender, cancellation and discharge of record, without the payment of any consideration therefor. ot
the following obligations of the applicant outstanding in favor of William V.
Hodges, trustee:
Volume 136
Financial Chronicle
First mortgage 5% gold bonds issued under a trust indenture
I dated Jan. 1 1898, due July 1 1923, and now in default both
as to principal and accrued interest. Principal amount— --$998,000.00
Judgment obtained by David H. Moffatt against the applicant
on July 7 1905. revived from time to time in favor of
William V. Hodges, trustee, both principal and accrued
789.056.37
interest. Principal amount
Four unsecured demand notes issued prior to March 15 1912,
one to David H. Moffatt for $113,375, one to Thomas F.
Walsh for $5.000, and two to Charles Cavender for $10,000
and $5,000, both principal and accrued interest. Principal
133.375.00
amount
4. That the applicant should agree with the Finance Corporation that
creation of any lien upon
during the life of the loan it will not permit the
its property now owned and hereafter to be acquired which shall have
priority over the new closed first mortgage.
5. That the applicant should agree with the Finance Corporation to
use the proceeds of the loan solely for the purposes specified.
t 6. That before any advance upon the loan be made the applicant should
deposit with the Finance Corporation a bond or bonds, in form satisfactory
to that Corporation, for the faithful performance and completion of the
contract or contracts for the construction of the improvements, as aforesaid, and to provide for turning over to the applicant the two ferry boats
free and clear of all mechanics' or other liens and encumbrances.
)I` 7. That before any advance upon the loan be made the applicant should
furnish evidence satisfactory to the Reconstruction Finance Corporation
that it has received the proceeds from sale of $100,000 of second mortgage
bonds.
8. That before any advance upon the loan be made the applicant should
furnish evidence to satisfy the Reconstruction Finance Corporation that
it has the right to conduct intra-State business.
9. That the applicant should be required to report to the Finance
Corporation and to us, at 30
-clay intervals following the making of the
loan, accompanied by detailed completion reports, the expenditure of the
proceeds thereof for the purposes for which the loan is authorized.
Commissioner Eastman, concurring, says:
In 1930 we unanimously found that public convenience and necessity
require the establishment of this ferry service, making the following statement, among others (186 I. O.0. 293, 305):
"As to possible effect of competition by the proposed ferry, the intervener seems unduly alarmed. With more efficient equipment now in
use and operation over the shorter route, permitting service more freqeunt
than the applicant contemplates or, indeed, would be able to furnish
without additional vessels, the intervener should be able to retain all
traffic which normally should flow to its ferry. A considerable part of
the traffic expected by the applicant would not use the intervenfr's facilities
in any case.
The need for this direct route between populous Washington and the
attractive and fertile Eastern Shore of Maryland will continue to grow.
There is undoubtedly an element of risk in the undertaking, but now that
the loan has been reduced to less than half the amount originally sought
I believe it to be adequately secured. Moreover, doubts, if they are
not too serious. may properly be resolved in favor of a loan which will
put people to work, as this loan will.
Commissioner Mahaffie, dissenting, says:
The Chesapeake Beach was incorporated in 1896. Its operations have
been unprofitable. As of Dec. 31 1931 it had current assets of $22.720.
as against current liabilities of $5,048,522, and a corporate deficit of $3.403,544. It proposes to effect a readjustment of its capital structure.
This appears to be necessary. The line was designed primarily to carry
passengers. The necessity for it has decreased greatly due to the developmet of motor transport. The hope is to save the existing line and to render
it profitable by extension through the ferry service. The ferries will compete
with the established service of the Claiborne-Annapolis Ferry Co. That
company has done well in past years, but at present its operations are
not on a particularly profitable basis. If it were eliminated, it is possible
that the applicant could secure traffic sufficient to sustain it. It is hardly
to be presumed that the existing line will allow its business to be taken
from it without a fight. A division of the traffic between the applicant
and the existing service will leave both in a dangerous condition. Since
the repayment of the loan is dependent on the success of the ferry service.
and since the prospect of such success is not, to me, apparent, I am unable
to conclude that the security offered is adequate.
Chicago Rock Island & Pacific Ry.
The Chicago Rock Island & Pacific Ry., on Feb.7 1933, filed an application requesting an additional loan from the Reconstruction Finance
Corporation and on Feb. 28 1933 filed amendment thereto.
By our report upon a previous application we approved a loan of $10,000,000 on June 15 1932 to be used for specified purposes and upon prescrioed conditions. This loan, made on various dates after the pledge of
collateral security prescribed by us, has been fully consummated.
The Application.
By the amended application the applicant seeks a loan of $3,753,072
for a term of tnree years and asserts that due to the general business situation, none ofits 'Yanking connections will provide the necessary funds, and
that it is unable to procure them from any other sources. Toe applicant
is a party to the "Marshalling and Distributing Plan, 1931" of the Railroad Credit Corporation, but has sought no financial aid from tnat corporation other than that indicated in our previous report. No loan has
been made to the applicant by tnat corporation.
This loan is sought to enaole the applicant to meet, when due, the
principal of and interest on equipment trusts and interest on mortgage
bonds of tne system. The indebtedness to which the funds will be applied
and the dates when they are needed are shown to be as follows:
Principal.
Total.
Interest.
Date Due.
$1.181.872$1,181,872
Mar. 1 1933
188.000
Apr. 1 1933
2,383,200
2,571,200
$3,565,072
$3.753,072
$188,000
Of the total loan now sought, $206 800 is for the payment of principal
and.interest of equipment trust notes, $34,372 is for interest on existing
Finance Corporation loans, and the remainder, $3,511,900, is to apply to
the payment of interest on various bond issues of the applicant and its
constituent lines. The loan with which to pay interest on tne previous
loan by the Finance Corporation to the appllcant will not be approved.
Of the interest to be paid, $2,611,900 is for interest on bonds which
mature in 1934 and possess a airect first lien upon 2,904.13 miles of road;
and the remainder, $900,000, is to pay semiannual interest on an issue of
notes secured by $41,000,000 of the applicant's first and refunding bonds.
The applicant now submits estimates of its income and cash receipts
and disbursements for 1933. Based on similar estimates submitted at
the time of the first application, it was expected that by the end of December
1932 there would be a shortage of cash of $5,469,000. Notwithstanding
the failure, by a substantial margin, to receive the revenues then estimated, the applicant entered 1933 with approximately $2,673,000 in
1685
cash. It is stated, however, that at the close of business on Feb. 28 1933,
the applicant will have on hand but $1,125,000 in cash against which
there are payments of interest due on March 1 of $1.181,872. with pay
roll payments of $1,260,000 in from five to eight days thereafter. A
deficit in cash or a default upon the applicant's obligations of substantial
proportions will therefore exist, unless additional funds be secured. A
forecast of cash receipts and disbursements submitted by the applicant
covering the remainder of the year 1933 shows that without a loan the
applicant's deficit in cash after March will continue and increase. The
estimated need for cash in excess of expected receipts shows a cash deficit
of $8.203,524 by the end of December. If the loan be approved and
advances made as requested, it appears that the applicant will enter May
supplied with a cash working balance of $1,487,811. Thereafter it will
have deficits of substantial proportions Included in the forecast of
necessary disbursements for 1933 is the payment of $3,000,000 of unpaid
vouchers and of $4,067,000 of equipment trust certificates.
In estimating its revenues for 1933 an increase of 5% in freight revenues
over 1932 is anticipated. The applicant shows that before making the
estimate, it conferred with large shippers in the territory served. From
the information thus obtained it has concluded there will be a moderate
improvement in the shipment of automobiles, perishable fruits and vegetables, grain,lumber,road building materials and livestock. The revenues
from passenger and mail service, it is estimated, will be approximately
10% less in 1933 than in 1932. Express revenues for the two periods
are expected to be about equal. In operating expenses a decrease on the
whole is predicted. Expenses for maintenance of way and structures and
maintenance of equipment have been budgeted to meet the necessities
of safe and economic operation. Transportation expenses are estimated
on the basis of the service expected to be rendered, and all other expense
accounts used in computing net railway operating income are based upon
recent levels.
It is shown that on Dec. 31 1932 there was a surplus of 148 serviceable
locomotives and 23,379 serviceable cars stored, all in good contition. On
Jan. 1 1933 there were approximately twice as many had order freight train
cars as on Jan. 1 1929, but the total was less than 10% of the total owner
ship. Passenger equipment was not in as good condition, 73% being in
arrears for shopping. Some maintenance on locomotives was deferred in
1932 but an increase in the expenditures is forecast for 1933, which will
overcome such arrears.
Security.
As collateral security for the loan, the applicant offers the immediate
pledge of $1,140,000 of its first and refunding mortgage 4% bonds of
1934, $3,792,000 of Rock Island Arkansas & Louisiana Ry. first mort
gage 4;6% bonds of 1934, $306,000 of Rock Island Omaha Terminal
Ry. first mortgage 5% bonds of,1934, $3,310 000 of Rock Island Improvement Co. first and collateral mortgage 5% bonds of 1962. $747.492.51 of
6% receiver's certificates, issued by a former receiver of the Trinity &
Brazos Valley Ry., the applicant's equity in $4,380,000 of Trinity &
Brazos Valley first mortgage 5% bonds, and an assignment of its distributive share in the fund administered by the Railroad Credit Corporation.
The pledge is also offered, as and when issued, of $259,000 of St. Paul
& Kansas City Short Line RR, first mortgage 434% bonds of 1941. and
$391,000 of the aforesaid bonds of the Louisiana company. Application
for the Issue thereof has been filed.
For the period from January to October 1932 inclusive, the applicant
has paid to the Railroad Credit Corporation the sum of $1.028,212.86
representing accruals from increases in rates authorized by us. For the
period from November 1932 to March 1933 it is estimated that an additional
amount of not leas than $459,811.16 will be similarly paid.
Briefly reviewing some of the facts referred to in our previous report
which are pertinent in the consideration of this case, it appears that the
applicant operates a system of railways of approximately 8,000 miles,
situated in 14 States orthe Middle West. For tne entire period from
the termination of Federal control to tne end of tne year 1929 tne applicant has earned fixed charges, dividends on its preferred stock, and approximately $33,000,000 in excess of the divideds paid on its common stock.
In 1930 the applicant's earnings were sufficient to pay all its fixed charges
and full dividends on its preferred stock, leaving a substantial amount
available for dividends on its common mock. In 1931 it failed by approximately $386.000 to earns its fixed charges, and In 1932 by approximately
$10,000,000. The applicant asserts that this was due entirely to the
general business depression and relies on its record to demonstrate its
prospective ability to repay the loan. The applicant asserts that it has
made reductions in pay, force, and general expenditures, as far as is consistent with the proper maintenance and operation of its properties, and
expresses confidence that a moderate improvement in business will produce
net earnings sufficient to enable it to repay the entire loan. In the decade
ended with 1930 the applicant had gross revenues averaging $134.635,758
per annum. In the same decade the applicant's operating expenses averaged $102,900,894, and the amount earned available for interest charges
averaged aoout $21,000,000. The applicant's condensed income account
for 1932 and as it is now estimated for 1933, is shown to be as follows:
(estimated').
( ltt1al .
ac9 )
32
933
Railway operating revenues
$70,780,027
$72,680,128
Railway operating expenses
56,341,423
54,860,785
Railway operating income
11,801.343
ng
8,525.472
Non-operating income
1,474,427
1,508,303
Gross income
9,999,899
13,309,646
Deductions from gross income (excl. of interest) 5,734,469
7 86382 2
5 6:3
Amount availaole for interest
4,265,430
:44 6
Int rest requirement
e
14,222,231
14,195,162
The applicant has included nothing in its income account or casn forecast on account of emergency freight rates under our decision in Ex Parts
103 after March 31 1933. Accruals prior to March 1 in the estimates are
offset by payments to tne Railroad Credit Corporation.
At the level of expenses existing when we previously considered the
requirements of the applicant, it appeared that $100,000,000 of gross
revenues would enable the applicant to meet all its fixed charges. Exclusive of depreciation and retirements of equipment, the applicant now
estimates that additional gross revenues of approximately $7,500,000
over toe estimate for 1933 snown above would be required to meet its fixed
charges. Expense for depreciation and retirement of equipment accrued
in the estimates for 1933 is $4,632.000.
The Appltcant's 1934 Maturities.
The record shows that in March and April 1934 the applicant will be
required to meet an aggregate of $140,595,000 of maturing debt. This
includes $14,125,000 of bank and Finance Corporation loans, $11,000.000
of Rock Island Arknasas & Louisiana RR. first mortgage bonds due
March 1, $11,000,000 of Burlington Cedar Rapids & Northern Ry. bonds,
and $104,470,000 of the applicant's first and refunding 4% bonds. In
addition, there are equipment trust notes amounting to approximately
$4,255,000 to be paid on or before April 1 1934. The applicant has applied
to us for authority to unit* its system so as to simplify the issue of a new
mortgage witn which to accomplish its refinancing.
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Financial Chronicle
Conclusions.
We conclude:
I. That we should approve a loan of not to exceed $3,718,700 by the
Finance Corporation, to be advanced to the applicant for terms to expire
not later than March 1 1934. and to ne devoted to the purposes set forth
In this report.
2. That before any advance upon the loan is made the applicant should
pledge with the Finance Corporation, as collateral security for this and
for previous loans to the applicant, the following securities:
(a) Chicago Rock Island & Pacific By. first and refunding
mortgage 4% bonds of 1934
$1,140,000.00
(b) Rock Island Arkansas & Louisiana RR. first mortgage
% bonds of 1934
3,792.000.00
(c) Rock Island Omaha Terminal first mortgage 5% bonds-- 306.000.00
(d) Rock Island Improvement Co. first and collateral mortgage 5% bonds of 1962
3,310,000.00
(e) All of the right, title, interest and claim of Chicago Rock
Island & Pacific By. In and to $4,380,000 of first mortgage 6% bonds of 1935 of Trinity & Brazos Valley Ry.
and $4,190,000 of refunding and extension mortgage
% bonds of the Colorado & Southern Ry., existing
by virtue of an agreement between said Colorado &
Southern By and Chicago Rock Island & Pacific By.
dated Dec. 23 1918.
(f) Trinity & Brazos Valley By. receiver's certificates
(matured)
747,492.51
and before any advance upon the second part of the loan is made, by the
pledge of all or such part as we may authorize of
(g) St. Paul & Kansas City Short Line RR. first mortgage
434% bonds of 1934, amount for which application
is pending
(h) Rock Island Arkansas & Louisiana RR, first mortgage 259,000.00
434% bonds of 1934, amount for which application is
pending
391,000.00
3. That the applicant should deposit vritn the Finance Corporation,
as additional security for such loans, an assignment, in form satisfactory
to tnat corporation, of its distributive share in tne fund administered by
the Railroad Credit Corporation under its "Marshalling and Distributing
Plan, 1931."
4. That the Finance Corporation will be adequately secured under these
conditions.
Galveston, Houston .3s Henderson RR.
The Galveston. Houston & Henderson RR.. on Feb. 9 1933, filed an
application for a loan of $2,122,000 from the Reconstruction Finance
Corporation, and on Feb. 27 1933 an amendment and supplement to the
original application was filed reducing the amount applied for to $1,061,000.
The Application.
The applicant requests a loan of $1,061,000 for a term of three years,
to provide funds for paying at maturity, on April 1 1933, one-half the
principal of its first-mortgage 5% gold bonds now outstanding in the
amount of $2,122.000. It represents that it does not have the necessary
funds for this payment and is unable to secure them in whole or in part,
upon reasonable terms, from other sources. That part of the maturing
Issue not paid in cash the applicant plans to refinance through the issue
of new bonds. The holders of each maturing $1,000 bond will thus receive
$500 in cash and $500 in new bonds.
To provide new bonds to be issued par for par under the plan, and also
to provide additional new bonds for collateral security for the loan sought
from the Finance Corporation, the applicant plans to execute a new mortgage, and to Issue new bonds for both purposes equally secured thereunder.
The applicant has in preparation and expects to file with us not later than
March 6 1933 an application for authority for the initial issue of bonds in
the amount required for financing the April 1 1933 maturity in this manner.
Promptly upon authorization of the loan herein applied for, the applicant
proposes to offer its plan to the holders of its maturing first-mortgage
bonds upon the terms indicated, and to request the bondholders to indicate
their acceptance of the offer by deposit of their bonds with a designated
depositary. The offer will be conditioned upon the deposit of substantially
all of the maturing bonds, failing which the plan will be abandoned.
While less than 25% of its stock is held directly in the names of either
of those carriers, the applicant responds to joint control by the InternationalGreat Northern RR. and the Missouri-Kansas-Texas RR., effected through
voting agreements of the other stockholders of record. It reports the
equity in its stock as owned in equal shares by the two carriers named;
all the stock of the International-Great Northern RR, as owned by the
New Orleans, Texas & Mexico By., and more than 60% of the latter's
stock as owned in turn by the Missouri Pacific RR.
The applicant is not a party to the "Marshalling and Distributing
Plan. 1931." of the Railroad Credit Corporation.
Necessities of the Applicant.
On Nov. 30 1932 the applicant's cash amounted to $68,787 and its
total current assets to $295.973. Its total current liabilities were stated
at $45,237 and tax liability $30,321 additional. For the 12 months of
1933, ordinary receipts and disbursements are estimated at $460,319 and
$449,918. respectively, resulting in a cash balance of $34,383 for Dec. 31
1933. The long-term debt comprises $2,122.000 of first-mortgage bonds
maturing April 1 1933. for which provision is sought to be made through
the loan herein applied for, and $335,899 of non-negotiable debt to affiliated
companies In open account. There are no equipment obligations. So long
as the joint facility rents due it are paid promptly, the applicant will
apparently be in position to meet all its obligations during the term of the
contracts with the tenants, except the maturing bond issue for which this
loan Is sought.
Security.
As security for the repayment of the loan applied for, the applicant
offers $1,591,500 (or such other amount as the Finance Corporation and
we may require) of its proposed new issue of bonds. The new bonds will
be known as the applicant's "first lien and refunding gold mortgage bonds."
These bonds will constitute an authorized issue not exceeding $5,000,000
outstanding at any time, all to be issued under and secured by a mortgage
and deed of trust, to be dated April 1 1933, to Central Hanover Bank &
Trust Co., as trustee. In addition to a direct lien (subject only to the
existing first mortgage until the same shall have been discharged) on all
the applicant's properties, rights and franchises now owned or hereafter
acquired, the security for the new bonds will include,(1) the specific pledge
of all existing first mortgage bonds when and as required by the applicant,
and (2) the assignment of the applicant's interest In the trackage contracts
with its tenant lines. Provision will be made for issue of bonds under this
mortgage to finance subsequent maturities as well as the maturity of April 1
1933, and for additions and betterments to the property, and it is proposed
that the mortgage permit capitalization of uncapitalized additions and
betterments made prior to the date of the mortgage. The new bonds to
be offered to present bondholders and proposed to be pledged for the loan
herein applied for will be first lien and refunding gold mortgage bonds
maturing April 1 1938 and bearing interest at 534%.
March 11 1933
For each of the 11 years from 1921 to 1931, inclusive, the applicant has
received a net income varying from a minimum of $11,434 In 1928 to a
maximum of $32,656 in 1923. Interest on funded debt was constant at
$106,100 per annum. For the 11 months ended Nov. 30 1932 a net income
of $11,371 was received. The uniformity of result is due to the terms of
the contracts with the tenant lines which place the applicant in a guaranteed
status as to its expenditures for operations, maintenance, taxes, and interest
with a small margin remaining. The tonnage carried has suffered a substantial decline: but the precise effect on the earnings of the tenant companies
derived from the line is not easily determined. The applicant's line is said
to be essential to both tenants in securing an important volume of long-haul
traffic; and the rentals have been paid since 1895, notwithstanding intervening receiverships of the tenants. Debits to maintenance of way and
structures accounts have steadily declined from a maximum of $342,203
in 1926 to $90,030 in 1931, and to $67.765 during the first 11 months of 1932.
As of June 30 1918, we found the value for rate-making purposes of the
applicant's property used in common-carrier service to be $3,565,000.
including $35,700 for working capital. Net additions and betterments
since that date to Dec. 31 1931 have been reported to us by the applicant
In the amount of$767.224. If this sum be added to the $3,565,000 previously
mentioned the total becomes $4,332,224.
The applicant's present first
-mortgage 5% bonds maturing April 1 1933
sold on the New York Stock Exchange at 75 and 76 during the week ended
Feb. 17 1933, the price being 7034 bid and 84 asked on the latter date.
The range for 1933 has been from 55 to 76.
Conclusions.
We conclude:
(1) That we should approve a loan by the Finance Corporation to the
applicant of not to exceed $1,061.000. for a term not exceeding two years
from the making thereof, to provide funds required for the plan of refinancing the April 1 1933 maturity of first-mortgage bonds, as more fully
set forth in the application and this report.
(2) That the applicant should deposit with the Finance Corporation, as
collateral security for the loan, $1.591,500 of its 534% series A first lien
and refunding gold mortgage bonds of 1938. duly authorized by appropriate
corporate action and our approval under section 20a of the Inter-State
Commerce Act, and secured by mortgage lien and collateral assignments
as above described, said lien, however, to be limited to a total issue not
to exceed $3,000,000 outstanding at any time, except as subsequent expenditures are made for additions or betterments of the property of the
applicant.
(3) That before any advance upon the loan be made, the applicant
should present evidence satisfactory to the Finance Corporation that
substantially all of the holders of the first-mortgage bonds maturing April 1
1933 have assented to the plan of refinancing to accomplish which this
loan is sought.
(4) That before any advance upon the loan be made the tenant carriers
operating the applicant's railroad should contract with the applicant for
payment of additional rental for the use of the property for a term extending
to the final payment of the loan, principal and interest, which additional
rental should be equal to the increase in fixed charges resulting from complete refinancing of the April maturity to a date not earlier than the due
date of the loan.
Minneapolis & St. Louis RR.
W. H. Bremner, receiver of Minneapolis & St. Louis RR., filed an
application on Feb. 6 1933 to the Reconstruction Finance Corporation
for a loan under the provisions of Section 5 of the Reconstruction Finance
Corporation Act, approved Jan. 22 1932, as amended.
Representations opposing approval of the proposed loan have oeen
filed with us by a reorganization committee representing holders of the
company's securities. These petitioners favor an immediate liquidation
of the property, which, they assert, will follow denial of the loan. Commercial clubs and other citizens organizations in communities served
by the railroad, fearing its abandonment, have filed other petitions
urging
our approval.
This is the second application of the receiver for a reconstruction loan.
The prior application requested a loan of $3,898,629.50 for the purpose of
discharging overdue preferred claims, amounting, without accrued Interest,
to $1,748,629.50; receiver's certificates, upon maturity, in the amount of
$1,200,000; and principal of Merriam Junction-Albert Lea first mortgage
bonds of the railroad company, maturing June 1 1932, 5950.000. By
our report and certificate of April 30 1932 we approved a loan of $2,698,630
with which to discharge the preferred claims and meet the maturing bonds.
The present application states that on Sept. 19 1932 the receiver was
advised by the Finance Corporation that it could not make advances on
the loan thus approved, and we are further informed that the Finance
Corporation had not modified Its conclusions prior to the date of the
present application. The receiver Indicates that in the event of our
approval of the present application, he will not pursue further efforts
to obtain the loan previously approved. In connection with that loan,
therefore, we shall enter an appropriate order canceling our previous
certificates.
The Application.
A loan of $1,076.591 is now required by the receiver for a term of three
years, with the right to discharge the loan in whole or in part prior to
maturity. This request is predicated upon the expressed belief of the
receiver ,lat, as soon as business conditions warrant, a reorganization of
the property can be effected and in that manner the requisite funds obtained for retirement of the requested loan. The proceeds of the loan
would be applied in payment of the following items of indebtedness:
Vouchers awaiting payment Feb. 3 1933 for Indebtedness
incurred by receiver in operation of railroad
$560,689.00
Principal and interest on four equipment trust ooligations
due between Jan. 1 and June 30 1933
220,905.80
Estimated Minnesota, Iowa, South Dakota and Illinois taxes,
payable between Feb. 28 and April 30 1933
295,000.00
Total
51.076,594.00
By order of court entered Jan. 31 1933, the receiver was authorized
to make application to the Finance Corporation for a loan for the foregoing purposes. It is recited in the application that funds with which
to meet these ooligations can not be secured, either in whole or in part,
from any other source. The receiver has been unable to procure funds
with which to pay current expenses as evidenced by the fact that although
vested with authority to issue receiver's certificates in the amount of
$65,000 in the conduct of the receivership estate, he advises he has been
unable to find a market for such certificates.
Because of the receivership the receiver has not become a party to
the "Marshalling and Distributing Plan, 1931" of the Railroad Credit
Corporation, and is thus precluded from securing a loan from that source.
As recited in our earlier report, general claims were filed with and allowed
by a special master in the receivership proceedings in the amount of $4,034.570.60. Included in this amount is $3,010.753.16 arising from a loan
from the United States under Section 210 of the Transportation Act, 1920.
Volume 136
Financial Chronicle
A claim for preference was made by the Government in the proceeding
before the special master but was denied and the finding was affirmed
upon appeal. The applicant states that none of these general claims
have been paid to date and it is not proposed to pay any portion thereof
with the proceeds of the loan now sought. There were no other financial
relations existing between the applicant and the United States at the
date of the application, except minor amounts arising from the handling
of mail, transportation of troops and income tax matters.
Necessities of the Applicant.
As of Feb. 3 1933 the applicant had vouchers awaiting payment in the
amount of $560.689. These vouchers constitute indebtedness incurred
in the operation of the receivership estate which the receiver has been
unable to discharge with funds from operations after payment of taxes.
payrolls, principal and interest on equipment trust obligations, bills for
materials and supplies, and other items incidental to operating the property.
The majority of these vouchers represented indebtedness to other railroads, aggregating $223,167. and to coal and mining companies in the
amount of $132,204. Of the total of $560.689 of vouchers awaiting payment as of Feb. 3 1933 the applicant states that $14.457 were audited
prior to 1932: $481.040 during the calendar year 1932; and $65,192 during
the month of January 1933.
An additional sum of a220,905.80 is requested by the receiver for use
In payment of principal and interest of four equipment trust obligations
tailing due between Jan. 1 and June 30 1933. One of these agreements
was executed in 1920 by the company with the Director-General of Railroads, and another in 1921 with the National Railway Service Corporation,
under which the company purchased equipment in the total amount of
$3.110.228. These agreements were adopted by the receiver on Oct. 3
1924 and all installments were paid until Jan. 15 1933, when default
occurred in payment due the Director-General in the amount of $100,800.
As of the date last mentioned, the unpaid installments of these two equipment trusts aggregated $673,925. Of the loan for equipment trust notes.
$153.875 is payable to the Treasurer of the United States under these
two trust agreementa. The remaining two agreements were made by the
receiver in 1930 and 1931 and called for total payments of $1,659,537, of
which a balance of $1.193.932 remained unpaid as of Jan. 15 1933. Provision Is made in these trust agreements for the acceleration of payments
in case of default, with repossession and sale by the trustee. The applicant asserts that foreclosure of these trust agreements would hamper
operations and substantially increase the expenses thereof due to the
necessity of hiring similar equipment from other railroads.
The remainder of the loan, $295.000, represents estimated installments
of semi-annual taxes payable to the States of Minnesota, Iowa, South
Dakota, and Illinois on the first Monday in January 1933. but which the
applicant Is privileged to pay at various dates. specified In the application,
between Feb. 28 and April 30, without incurring penalties.
Security.
The receiver offers to pledge as security for the proposed loan his certificates of indebtedness of a face value equal to the amount of the loan,
which shall be secured by a lien upon all of the property and assets of the
company now in the hands of the receiver, on a parity with the lien of
receiver's certificates now outstanding. The authority to pledge these
certificates was granted by order entered Jan. 31 1933 in the United
States District Court, which order recites that the receiver's certificate
when issued shall be prior in right and superior in equity to the liens of
the various mortgages on the trust estate or parts thereof.
When the receiver came into possession of the property it was in a
run-down condition. Since the first year of his administration expenditures
for maintenance of way, structures and equipment have shown a steadily
declining trend. For the period 1924 to 1930 expenditures for maintenance averaged $5.311,632; in 1931 they were $3.422,675: in 1932. $2,793,487, and for the first six months of 1933 are estimated to be $1,339,800.
The latter amounts approximate the annual expenditures just preceding
the receivership.
A monthly forecast of estimated cash receipts and disbursements for
the five months Feb. 1 to June 30 1933 has been submitted by the receiver
Indicating cash balances of $219.728 on Feb. 1 and $222.661 as of
June 30.
after giving consideration to anticipated revenues, wage reductions
of
10%, taxes, and other fixed charges.
In our previous report we approved an item of $950,000 with which
the applicant was to meet the principal of Merriam Junction-Albert Lea
first mortgage bonds, maturing June 1 1932. Interest on these bonds
was
paid by the receiver from 1925 to 1932, Inclusive, but the issue is
now
In default. The payment of principal of $100.800 due the DirectorGeneral of Railroads on Jan. 15 1933. under an equipment trust
dated
Jan. 15 1920, is also in default, as we have already stated.
A review of a statement filed by the applicant showing details of receiver's certificates as of Nov. 30 1932, discloses that of a total of
$1,515,000 of certificates retired during the paled Jan. 1 to Nov. 30. $15.000
was actually paid, the remaining $1,500.000 being retired by the issuance
of new certificates.
Conclusions.
We conclude:
1. That we should approve a loan of $1,076,594 for a term of three
years to the receiver of the Minneapolis & St. Louis RR. by the Finance
Corporation for the purpose of providing funds with which
to pay the
obligations in said application set forth and herein referred
to:
2. That said loan should be secured or evidenced by the receiver's certificates possessing an effective first lien on all the property and assets
of
the Minneapolis & St. Louis RR, and of the receiver thereof ranking prior
to all mortgage debt of the former including its so-called Merriam JunctionAlbert Lea mortgage and on equality with receiver's certificates now
outstanding;
3. That before an3 part of the loan is advanced to the receiver, he should
file with the Finance Corporation evidence satisfactory to it that the
maturity of all of his existing receiver's certificates have been or will
be
extended for a period equal to the period for which the loan may be made.
Minneapolis St. Paul & Sault Ste. Marie Railway.
The Minneapolis St. Paul tic Sault Ste Marie Ry. filed an application
on Feb. 10 1933, to the Reconstruction Finance Corporation, for an extension for two years of the term of loans now outstanding In the amount of
$1,499,461 approved for one year in our report and certificate of
Feb. 25
1932. in this proceeding. Wo therein approved loans to the applicant
totaling $2,300.000, of which $1,814,000 was for one year and $486,000 was
for two years. The loans for two years were for the purpose of meeting
Interest maturities, and were taken over by the Railroad Credit Corporation, either by repayment to the Finance Corporation of its advances or by
advances directly to the applicant. Loans for one year In the amount of
$1,709,130 have been made under this certificate of which $209.668 has
been repaid, leaving $1,499,461 outstanding, evidenced by notes maturing
1687
as follows: $974,461 on Feb. 27 1933: $100,000 on April 28 1933; and
$425,000 on June 10 1933. These obligations, the applicant asserts, it will
be unable to meet and it requests their extension for a period of two years.
By our report and certificate of July 25 1932, in this proceeding we
approved an additional loan of $5,000,000 to the applicant for a term of
two years. The entire sum was advanced to the applicant in two installments, on July 29 1932, and Aug. 11932, and is still outstanding. 'under
the provisions of our certificate of July'25 1932, all of the security required
to be pledged for loans to the applicant applies without preference to any
and all unpaid notes evidencing loans approved in either certificate. As
such security the applicant was required to pledge $6,250,000 of its 1st
ref. mtge. 5;4% series B bonds of 1978; $1,750,000 1st mtge. gold bonds of
the Clarkson Coal Mining Co., due 1937. with agreement to pay to the
corporation all sums received by the applicant for retirement of the mining
company bonds under operation of the sinking-fund provision of the mortgage securing them: and $2,000,000, par value, of the capital stock of the
Central Terminal Railway, with assignment to the Finance Corporation of
all rentals received by the terminal company for subleases of its property.
In our previous reports in this proceeding, we have described the securities which we required the applicant to pledge, setting forth the available
facts relating to the financial structure and the earnings of the applicant
and of the other issuing companies. The applicant's first and refunding
% series B bonds are selling currently (Feb. 10 1933) at 54j. For the
year 1932, the applicant deposited with its New York depositary for the
payment on account of principal and interest on the Finance Corporation
loans under the provisions of our certificate. $112,265.56 of rentals
collected
by the Central Terminal Railway Co. for sub-lease of its
property, and
$17,000 received for the retirement of the Clarkson Coal Mining
Co. bonds.
Of these SWIM. $46,505.80 was used for the payment of
interest. $57.168.54
was applied to reduce the principal of notes, and the remaining
$25.591.22
has not been applied to the loan, but is on deposit with the depositary.
Under the sinking fund provision of the mortgage securing the
bonds
oi the Central Terminal Railway Co., the trustee purchased during
1932,
and now holds. $268,000 of the bonds of that company, thus reducing
the
total bonds outstanding to $2,680,000. and improving, by the
amount of
bonds so purchased, the position in the financial structure of the
company
of the stock pledged with the Finance Corporation.
The applicant's Income account for the year 1932 shows a deficit of
85.516.465 after payment of interest in the amount of 85.679.581 on
funded and unfunded debt. The deficit is due in a measure to the fact
that
a large percentage of the 1932 grain crop has not been sold but is stored
in
elevators or remains in the hands of the farmers. Grain shipments represent
the applicant's most important source of revenue and ordinarily
it moves
approximately 65% of the crop prior to Jan. 1 of each year. Up to
Jan. 1
1933. It had moved only 13.000,000 bushels of grain, or less than
30% of
the 1932 crop. If conditions stimulate the movement of the
remainder of
this crop during the early months of 1933, the applicant's
earnings for the
crop year ending July 1 1933, should exceed those for the
1932 crop year.
in which only 11,500.000 bushels of grain were moved.
On the basis of freight revenues approximately equal to those
received
in 1932. and passenger revenues $20,000 per month below those
for that
year, the applicant forecasts a deficit of 85.544,268 in
net income during
1933. Taking into consideration the cash on hand Jan. 1 1933.
and the
cash requirements throughout the year under these conditions
it forecasts
a cash shortage of $5,411.328 by the end of 1933, after payment
of fixed'
charges.
As stated in our original report in this proceeding, the applicant
is controlled by the Canadian Pacific Ry. through ownership of a majority
of
its capital stock. We are advised that the latter company has
agreed to
advance the applicant $5,500,000 during the first six months of 1933.
With
these funds, and with revenues assumed in its forecast, the applicant
should be able to meet its obligations throughout 1933. In January
1933.
the Canadian Pacific advanced $2.200,000 which enabled the applicant
to
meet the interest on its bonds and notes due in that month.
The applicant's financial difficulties during recent years have been due
in part to the burdens incident to its lease of the property of the Wisconsin
Centraly Ry. It obtained control of this property in 1909 through purchase
of a majority of the common stock and control of a majority of the preferred
stock and leased it for 99 years, agreeing to pay 4% interest annually on
$11,256,400(now outstanding) of leased-line certificates issued in exchange,
share for share,for preferred stock of the Wisconsin Central. The preferred
stock is held in trust to secure payment of the interest on the certificates.
Each year, the surplus or deficit resulting from operation of the Wisconsin
Central property was credited or charged by the applicant to that company.
The applicant also was liable in the amount of $232,640 annually under
its
guaranty of the payment of interest on Wisconsin Central Ry. 1st & ref.
4% bonds of 1959, outstanding In the hands of the public. By
Dec. 31
1931, approximately 55,000.000 had been advanced to the leased line, all
of which represented charges for operating deficits and interest on
bonds.
In addition to these advances, the interest on the leased-line
certificates
represented a fixed obligation of the applicant amounting to $450,256
annually.
On Dec. 2 1932, the Wisconsin Central Ry. was placed In the hands
of a
receiver The applicant is now under contract to operate the property as
agent for the receiver, all operating deficits to be reimbursed to it from
the
proceeds of the sale of receiver's certificates, thus relieving the applicant
of the burden of the leased-line operating deficits.
Conclusions.
We conclude that the one-year term prescribed in our report and
certificate of Feb. 25 1932. in this proceeding, for loans to the
applicant by the
Finance Corporation aggregating $1,814,000, now outstanding in the
amount of $1.499,461.46, should be extended for a further
term of not to
exceed two years.
Loans of $161,677,651 Extended by Federal Intermediate Credit Banks in 1932—Largest Volume
in Any One Year Since Banks Were Organized-Figures in Annual Report.
The annual report of the Federal Farm Loan Board
presented to Congress March 3 shows that Federal Intermediate Credit Bank loans to, and discounts for, financing
institutions during 1932 amounted to $151,577,651, representing the largest volume of credit extended to financing
institutions in any year since the banks were organized,
and exceeding by $28,844,289 the total in 1931. The
advances made during the year brought the total of loans to,
and discounts for, financing institutions from date of organi-
1688
Financial Chronicle
zation to the close of 1932 to $819,096,169. The amount
of such credit outstanding on Dec. 31 1932 was $82,517,754
as compared to $74,613,187 at the close of the previous
year. It is also stated:
During the year the Intermediate Credit Banks discounted paper for
or made loans to approximately 430 financing institutions. Of these 36
agricultural credit corporations, 28 livestock loan companies and 14 commercial banks had not previously established loan and discount relations
with the Intermediate Credit Banks. • This brought the total number of
Institutions served by the Intermediate Credit Banks from date of organization to Dec. 31 1932 to 1,065.
The Federal Intermediate Credit Banks were especially helpful to farmers
and stockmen during the past two years when, due to declines in bank
deposits and the closing of many banks, the amount of credit available
for agricultural purposes from normal sources was greatly restricted.
During 1932 the Federal Intermediate Credit Banks extended credit to
co-operative marketing associations in the aggregate amount of $89,245,114
as compared with $145.260.386 in 1931. The amount of outstanding loans
to co-operative marketing associations on Dec. 31 1932 was 89.865.615.
The reduction in volume of credit to co-operative marketing associations
In 1932 is accounted for largely by the payment in full of loans made by
the banks to the Grain Stabilization Corporation, on the security of wheat,
and to the American Cotton Co-operative Association, on the security of
cotton. The Cotton Stabilization Corporation greatly reduced its borrowings from the Federal Intermediate Credit Banks during the year and paid
the remaining balance in January 1933.
The Board's report shows that, because of conditions obtaining in the
securities market during 1932, debentures issued by the Federal Intermediate Credit Banks, which is their source of loanable funds, were sold
at progressively decreasing interest ratesfrom 5% per annum to 2Si%. The
decrease in rates also is attributed in part to the fact that Congress made the
debentures of these banks on May 19 eligible collateral for loans from
Federal Reserve banks to member banks borrowing from the Federal
Reserve System. This gave the debentures a desirable liquidity. The
declining interest rate on the debentures was reflected in the progressively
lower rate of interest charged by the Federal Intermediate Credit Banks
on loans and discounts, the decline being from a maximum of 53'i% to a
minimum of 3Si to 23i %,the average rate declining from 5.27 to 3.21%.
Revised Powers Enacted for Federal Land Bank Loans
—Senate and House Approve Measure for Broadened Powers and Reamortization of Certain Loans.
A bill (S. 5337) amending the Federal Farm Loan Act
to permit loans for additional purposes, to extend the
powers of the Federal Land Banks in making direct loans,
and to authorize on certain terms the reamortization of
loans by Federal and Joint Stock Land Banks was passed
by Congress March 3 and signed by the President, said the
"United States Daily" of March 6, which further said:
Completion of Congressional action came in approval by both the
Senate and the House of the conference report on the measure, which had
been passed first by the Senate, amended by the House, and revised by the
conference committee of the two Houses.
Substantially Unchanged.
In explanation of the changes in the measure, Senator Fletcher (Dem.),
of Florida, stated that the terms of the original Senate bill remain substantially incorporated, while one or two amendments by the House were
added.
Direct loans may be made, under the terms of the measure, with certain specified exceptions, to borrowers secured by first mortgages at an
% higher than the rate borne by the last preceding
2
/
Interest rate of 11
issue of farm loan bonds of the banks making the loans. This is in
case the National Farm Loan Association in the district is not able to
Indorse the loans.
"Each borrower who would obtain a direct loan," it is explained,
"from a Federal Land Bank would be required to subscribe to the stock
of the bank in the sum of $5 for each $100 or fraction thereof borrowed.
This stock would be held by the bank as collateral security for the loan."
Union of Borrowers.
The bill requires borrowers to covenant in the mortgage that Whenever
ten or more borrowers In a locality obtain loans aggregating $20,000
or more they would unite in a national farm loan association.
Some of the restrictions are removed with respect to the purposes for
which loans may be made by the Federal Land Banks. The measure
permits banks to reamortize the aggregate amount unpaid under the
terms of any mortgage and to accept payment over a period of 40 years.
Passage of the bill was recommended by the Treasury Department.
Bank of America National Trust 8c Savings Association
(San Francisco, Calif.) Inaugurates "Customers'
Transfer Orders" for Transaction of Business Between 1,500,000 Depositors.
Facilitating the normal flow of business for practically
one-third of the population of the State of California, the
Bank of America National Trust & Savings Association
(head office San Francisco) this week put into effect a
system enabling its 1,500,000 depositors to transact business
through the medium of customers' transfer orders. The
plan, it was stated, is in line with Government measures
designed to assist in the conduct of normal business and is
in addition to other permissible banking activities. Bank
of America customers' transfer orders permit a depositor
to complete any ordinary commercial transaction with any
other customer of the bank. An announcement by the bank
continues as follows:
The plan is simple in operation and easily understood. The purchaser
of goods or services gives in payment an order on forms supplied by the
bank which authorizes the bank to transfer a definite sum from the
checking account of the purchaser to the account of the named payee.
March 11 1933
This customers' transfer order is then available for deposit by the
recipient, who may in turn use these funds on deposit in the bank to
meet his obligation to other customers of the bank.
Bank of America is limiting all operation to comply with local Clearing
House regulations in each community.
Earnings in 1932 Will Be
Those of Previous Year.
The report of Transamerica Corporation (head office,
San Francisco)for the year ended Dec. 31 1932 will be mailed
to stockholders about March 14, it is stated. It will disclose
the fact that, after including net profits on the sale of
securities and after eliminating minority interests, the
consolidated net profit of Transamerica Corporation, holding companies and all controlled subsidiaries for the year
1932 was about ,000,000, or approximately 34 cents per
share on the 23,368,186 shares outstanding in the hands
of the public on Dec. 31 1932. This compares favorably
with a little over 8 cents per share earned net on the 23,659,368 shares outstanding at Dec. 31 1931. A communication in the matter goes on to say:
Transamerica Corporation's
Above
The report will also disclose that during the last six months of the year
Bank of America National Trust & Savings Association showed a consistent increase in earnings. After deduction for depreciation and reserves
Its earnings for the entire year were in excess of $6,100,000, while deposits
increased substantially since March 12 1932. Reserves of over $8.000,000
remain on the books for losses and contingencies.
No radical change has been made during the year in the structure of
Transamerica Corporation, but very important economies were effected
without impairing any essential activity. The report will show that
administrative expenses of the entire Transamerica group were reduced
approximately $8,000,000 for the year.
The President's letter accompanying the report will state that the policies
of the Gianni/11 management are restored and reaffirmed, and that the
founders of Transamerica Corporation were the first to foresee the need
of a sound branch banking system comparable to the great branch banking
systems of Canada, Great Britain and practically every other country
In the world.
The consolidated balance sheet of the corporation and holding companies
will show investments of over $38.000,000 in marketable securities, while
accounts payable and notes payable to banks will show a reduction of
about 68,000,000.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
President Franklin D. Roosevelt has retired as a member
of the firm of Roosevelt & O'Connor, which will continue
the general practice of law under the same name at 120
Broadway, New York.
Louis Crawford Clark of Clark Dodge & Co., banking
and brokerage house of 61 Wall Street, died yesterday
(March 9) after a month's illness at his home in New York
City at the age of fifty-two. From the New York "Sun" of
last night we quote:
Mr.Clark,son of Louis Crawford Clark, Sr. and Marian de Forest Clark,
had for ten years been a partner in the firm his father helped to found. In
1931 he was divorced from Frances Stokes Clark by a Reno decree. One
daughter, Frances, had been born of the union. Later in the year he
married Alison Gowen Clark of Philadelphia.
Mr. Clark was a graduate of Harvard in the Class of 1902 after attending
Pomfret and St. Mark's, and immediately became associated with Clark
Dodge. . . . During toe war he served as an officer in the Naval
Reserve and he was aboard the patrol boat Alcedo when it was torpedoed
and sunk off the French coast.
At the meeting of the Board of Directors of the Banos
Commerciale Italiana—Head Office, in Milan (Italy) it
has been decided to propose, at the general meeting of the
shareholders, to be held on March 25 1933, a dividend for
the year 1932 of 25 lire per share, equal to 5% and to carry
over as undivided profits 37,438,000 lire.
According to Associated Press advices from Corning,
N. Y., on Mar. 6, the national bank holiday put an end to
the arrangements of the First National Bank of Painted
Post, N. Y., to reopen for business on Mar, 4. We quote
,
° 1rther from the dispatch as follows:
After being closed for more than a year, the permission of the State
Banking Department to reopen had been obtained and floral tributes
were being arranged in preparation for the opening when Governor Lehman's order was made public.
Valiance Hamilton, Chairman of the Board and President
of the First National Bank of Caledonia, N. Y., and President of the State Bank of Honeoye Falls, N. Y., and a.
member of the New York State Park Commission, died in
a Rochester hospital on March 6 as the result of injuries
received the previous night when he was hurled from his
automobile as it crashed against a tree on the road between
Rochester and Caledonia. The deceased banker was 73
years of age. At the time of his death, in addition to heading the banks named above, Mr. Hamilton was a director of
the Monroe County Savings Bank of Rochester; headed
the Hamilton & Son Produce Co. and the Hamilton Flour
Mill in Honeoye Falls, was President of the Caledonia.
Volume 136
Financial Chronicle
Board of Educat.on and the Caledonia Water Board and
Chairman of the Taxpayers' League of Livingston County.
Willis Tracy Hanson, President of the Union National
Bank of Schenectady, N. Y., and one of the organizers of
the institution in 1891, died at his home in Schenectady on
March 2 of heart disease, of which he had been ill for eight
years. The deceased banker, who was 75 years of age, was
born in New York City, but went to Schenectady when
a
boy. He was a director of the W.T. Hanson Co. of Schenectady, manufacturers of patent medicines, the presidency of
which he resigned a year ago.
Colonel William Francis Richards of Colorado Springs,
Colo., former Chairman of the Board of the First National
Bank of Newport, N. H., and for many years head
of the
Dexter Richards woolen mills of Newport, died suddenly
in Boston, Mass., on March 5 of an embolism. Colonel
Richards, who was 66 years of age, was graduated from
Harvard in 1889. He had been in poor health for a long
time, and had been living recently in a Brookline sanitarium.
Colonel Richards had been Vice-President of the Colorado
Springs National Bank. Following his retirement from the
presidency of the First National Bank in Newport, he served
for some years as Chairman of the Board. He had held the
rank of Colonel on the staff of the. Governor of New Hampshire and had served in the State Legislature.
On March 1 the National Shawmut Bank of Boston, Mass.,
opened a new branch office at 231 Northern Avenue, South
Boston, at the fish pier. The new branch is under the
management of Joseph W. Daley. This brings the complete
Shawmut banking service to that district. The new quarters, formerly occupied by the Federal National Bank, have
been thoroughly modernized and the facilities include
spacious safe deposit vaults with the latest protective devices. The Boston "Transcript" of March 1, from which
the foregoing Is taken, went on to say:
1689
Payment of a 10% dividend to commercial depositors of
the closed City Bank & Trust Co. of Hartford, Conn., involving a distribution of approximately *413,000, on or
before Mar. 15 next, was ordered on Mar. 3 by Judge Newell
Jennings of the Superior Court on the application of Thomas
Hewes, receiver for the institution. The Hartford "Courant"
of Mar. 4, authority for the foregoing, continuing said:
The application was presented by Attorney Lucius F. Robinson, Sr.,
and Attorney Barclay Robinson, of receiver's counsel. Mr. Hewes told
the Court there is about $436,000 free cash in the commercial department. The application had the support of Henry H. Contend, Chairman
of the voluntary depositors' committee and of Attorney David Levy,
representing another group of depositors.
Judge Jennings took under advisement for another week the suggestion of Mr. Hewes, his counsel and Mr. Conland that the interest rate
on mortgages held by the closed bank be reduced from 63¢% to 5%.
Lucius F. Robinson, Sr., said that all Hartford banks are considering
the reduction of mortgage interest rates and he believed the City Bank
receiver should follow suit in order to help the real estate market, in
which the closed bank and its depositors are vitally interested. He
said the benefits to be derived from such a reduction outweigh the legal
rights of the bank and the depositors under the present mortgage interest
rates.
Mr. Robinson suggested that the proposed reduction apply
to all
mortgage loans, whether they are in default or not, but Mr. Hewes
said
the rate should be reduced on only those mortgages on which
interest
and taxes are fully paid and on those in which an attempt is being
made
to keep the taxes and interest paid up. There would be no
advantage,
he argued, to reduce the interest rate on mortgages which are in
default.
After Mr. Levy had requested a delay so that he could report
to his
clients, Judge Jennings said that he would like to think the matter over
at least a week. Both Mr. Conland and Mr. Robinson told the Court
they believed the reduction in interest rate would have a good effect on
the real estate market. Mr. Conland said he believed the borrowers
of the City Bank should receive the same benefits which the borrowers
of other banks have.
At the present time, Mr. Hewes said, the Interest in arrears on mortgages held by the bank totals about $100,000.
Our last previous reference to the affairs of this bank.
which closed Jan. 2 1932, appeared In the "Chronicle" of
Sept. 17 last, page 1941.
4
On March 2nd and March 3rd the Howard Savings Institution of Newark, N. J., suffered a severe "run" by its
depositors. The "run", according to Newark advices on
During the next month the National Shawmut will also open
another
March 3 to the New York "Herald Tribune", resulted from
South Boston branch at 474 West Broadway, extending Shawmut banking
a mistaken impression caused by the congregation of an unservice to that section.
The bank is one of New England's largest institutions, with resources
usually large crowd of depositors at the institution on Wedwell over $180,000,000. This conservative old bank has been
actively
nesday, March 1,interest day, to have their interest accruals
connected with Boston and New England affairs since 1836.
Its main
credited on their pass books. On this day, March 1, the
office is located at 40 Water Street. The new branch at the fish
pier is
its fifteenth branch office in metropolitan Boston. The
dispatch stated, the bank received $275,000 in new deposits,
opening of these
new branches is in line with the established policy of the
bank to extend
the largest day's deposits since Oct. 1, when it took in $282,its complete banking facilities to all sections of the city.
000. On March 2 the "run"started and 3,000 persons made
Directors of the Harris Forbes Trust Co.of Boston, Mass., withdrawals. On March 3 the bank met the demands of
have appointed Donald D. McKay a Vice-President in 1,800 depositors for withdrawals totaling $3,800,000. At the
charge of the new business department of the institution. same time the bank took in $138,000 in deposits, including
The Boston "Transcript" of March 4, from which this is the semi-monthly pay check of Mayor Jerome T. Congleton
learnt, went on to say:
for about $220, while Catholic,Protestant and Jewish clergyMr. McKay has had a wide banking and business experience. He has
men added their pleas for confidence in the institution to the
been with the Harris Forbes organization for 18 years more recently in
assurances of the Mayor and officials of the Reconstruction
charge of the Rhode Island territory.
Finance Corporation that the bank was in excellent condition.
At the annual meeting of the Union Trust Co. (formerly Officials of the bank said they could have met demands for
the Kidder. Peabody Trust Co.) of Boston, Mass., held $10,000,000 in withdrawals during the day had the bank's
Wednesday of this week, Mar. 8, the Hon. Charles Francis physical facilities been sufficient. We quote further in part
Adams, former Secretary of the Navy, was chosen Presi- from the dispatch mentioned, as follows:
dent and a director, and William Holway Hill, was made
a Vice-President and a director. Boston advices to the
New York "Herald Tribune," reporting the matter, furthermore said:
Besides Mr. Adams and Mr. Hill, the following were elected directors:
Philip Dexter, Frederick C. Dumaine, Roger Amory, John C. Rice and
Vincent Farnsworth.
The Kidder, Peabody Trust Co., for some years engaged in private
banking, was reorganized a abort time ago under the name of the Union
Trust Co., to engage in a general banking business.
At the annual meeting of the trustees of the Boston Penny
Savings Bank, Boston, Mass., Walter C. Lewis was appointed a Vice-President of the institution to fill the vacancy
caused by the death of James B. McLellan, according to the
Boston "Transcript" of March 7. Other officers of the bank,
headed by Frederick H. Briggs, President of the institution
since 1924, were reappointed. Edward Hutchins and George
H. Faxon were added to the Board of TruStees, it was stated,
and the following ten new names added to the incorporators'
list: Dr. Ralph C. Aehorn, Stephen D. Bartlett, Charles C.
Balcom,Samuel Best, Horace T.Cahill, Ethelbert V.Grabill,
Otto F. Hauck, G. Lester Marston, Richard Ray, Jr., and
Charles H. Sargent, Jr.
Two memberships in the Chicago Board of Trade were
reported sold on the 6th at $4,250 to $4,600. The last
previous sale was at $4,000.
Seven times during the day employees of the bank,surrounded
by policemen with drawn revolvers, paraded past the long lines of waiting
depositors,
carrying strongboxes stuffed with currency from neighboring banks
to the
Howard institution. Five million dollars was carried into the bank
in these
processions from the Fidelity Union Trust Co., across Broad Street
from
the Howard. and the National Newark & Essex Banking Co., half
a block
away at Broad and Clinton Streets, to augment the $3.000,000 cash
on had
when the bank opened this morning.
Depositors started to gather at the Howard Savings Institution at 5 a. m.
(March 3) to wait for four hours for the bank to open its doors. By
9 o'clock
a double line of men and women extended nail way round the
block from
the bank's entrance north to Clinton Street, East to Beaver
Street, then
South to the rear of the institution. Thirty uniformed
policemen and
twenty detectives were on hand to preserve order, but the crowd
was quiet,
seldom shoving or getting out of line. . . .
The city issued its pay checks, two days past due,
at noon, and fifteen
minutes later Mayor Congleton arrived at the bank to
make his deposit. At
this time no issued toe following statement:
"In an interview with the officers of the Howard
Savings Institution this
morning, I find that the bank has ample liquid resources
to meet the demends of depositors, and, furthermore,
local institutions and the Federal
Reserve Bank of New York. the Federal Home
Loan Bank and the Reconstruction Finance Corporation have offered to assist whenever and to
the
extent necessary.
"On Wednesday the bank received on deposit a larger sum than
on any
single day since the first of last October and I have myself made a
deposit
to-day.
"The Investments of the bank are the most liquid and of the
highest
grade to be found in any list of banking assets and no apprehension
need
be felt on the part of depositors of this seventy-five-year-old
institution.
I would urge depositors who do not need their funds for
immediate use to
go home and leave their money where it is much safer than if
they withdraw
it and carry it on their persons or hide the money in
their homes."
The bank remained open until 4:30 p. m.. half an hour after
the regular
closing time. At that hour approximately 150 depositors
inside the bank
were paid.
1690
Financial Chronicle
Six former officials of the Main Line National Bank at
Wayne, Pa., were indicted by a Federal Grand Jury in
Philadelphia on Mar. 8 on charges of misapplying about
$15,000 of the bank's funds. The institution was taken
over by the Federal Comptroller of the Currency Oct. 1
1931. A dispatch from Philadelphia to the New York
"Times," reporting the matter furthermore said:
The grand jury acted after hearing a prima facie case presented by
Federal Attorney Edward W. Wells, based on investigations conducted
into the bank's operations.
Those indicted and their former connection with the bank are W.Macklin
Witherow, President; Robert G. Draper, Cashier; and Ed Stotesbury
Lewis, Henry W. Roth, William A. Wiedersheim and Colonel Milton G.
Baker, directors.
It was alleged, among other things, that the group used $4,000 of the
bank's money to buy twenty-five shares of the bank's stock from Lewis,
Roth and Wiedersheim, transferring it to Colonel Baker so that he could
qualify as a director.
The Pittsburgh "Post Gazette" of Mar. 2 1933 carried
the following with reference to the new Pittsburgh bank
now being formed as a successor to two closed Pittsburgh
banks, the Diamond National Bank and the Monongahela
National Bank:
Plans for opening Pittsburgh's new downtown bank representing the
business and liquid assets of the closed Diamond National and Monongahela National banks were proceeding yesterday (Mar. 1), according to
an announcement by Attorney William S. Moorhead, counsel for the reorganization committees.
The new bank, for which a name is yet to be chosen and which is expected to free millions of dollars for Pittsburghers, will not be affected
by the resolution passed by the Legislature in Harrisburg Monday night
(Feb. 27), allowing banking institutions to restrict withdrawals of deposits Moorhead stated. Like other Pittsburgh banks, it will be highly
'
liquid upon opening, he said, and will have no use for such restrictions.
Announcement was made on March 3 by Dr. William D.
Gordon, State Secretary of Banking for Pennsylvania, that
the Miners' Savings Bank & Trust Co. of Olyphant, Pa.,
would make an advance payment of 5%, or $132,020, to its
6,055 depositors on March 13, according to the Philadelphia
"Finance Journal" of March 3. The Miners' Savings Bank
& Trust Co. of Olyphant closed its doors on Sept. 30 1931,
as noted in our issue of Oct. 3 1931, page 2210.
On March 2 Michael J. Ryan, former President of the
defunct Girard Avenue Title & Trust Co. of Philadelphia,
and former City Solicitor for Philadelphia, was indicted
for alleged embezzlement, misapplication of funds, and
fraudulent conversion in connection with the bank's failure.
Philadelphia advices to the New York "Times" on March 2,
from which the above information is obtained, also said:
The accusations are contained in 12 bills, comprising more than 70
counts, in one of which he is accused jointly with his son, George M. Ryan,
a former officer of the bank, who is serving a prison sentence of 10 to 20
years. Three other former officers also are serving sentences.
The Liberty State Savings Bank of Liberty Center, Ohio,
the only bank in the place, failed to open for business on
March 2, and a notice posted on the door stated that the
institution was closed for liquidation. or reorganization. A
dispatch from Liberty Center, printed in the Toledo "Blade,"
from which this is learnt, continuing, said:
No limit had been placed on withdrawals, but many of the bank's patrons
signed an agreement last August not to withdraw savings deposits.
A. M. Fish, Delta, is President of the bank, and L R. Bowers, Cashier.
The Citizens' State Bank and the First State Bank of
Huntington, Ind., both of which had been closed since Jan. 23
last, reopened on Feb. 25 as the result of the signing of
waivers representing 93% of the $2,500,000 deposits of the
two institutions, according to a dispatch from Huntington
by the International News Service, which furthermore said:
under provisions of the
The banks were operating Saturday (Feb. 25)
to do with
new Indiana Bank Code Bill, although that law had nothing
Bank Commissioner
reopening of the banks, according to Assistant State
Thomas Barr.
almost unlimited
The new law gives the State Banking Department
of closed banks.
power to prescribe rules of any kind for reopening
Burton F. Swain, President of the Shelby National Bank
er, died at
of Shelbyville, Ind., and a lumber manufactur
of
his home in Shelbyville on Mar. 2. He was 68 years
had been President of the Shelby National
age. Mr. Swain
Bank since March 1925,and for twenty years previously ViceVeneer
President. He also was President of the National
& Lumber Co., Indianapolis; President of the Swain-Roach
Lumber Co. and Treasurer of the Kennedy Car Line & Bag
Co.
John R. Washburn, a Vice-President of the Continental
Illinois National Bank & Trust Co., died on Mar. 7 at his
home in Highland Park, a Chicago suburb, after a brief
March 11 1933
illness. He was 56 years of age. Advices from Chicago
to the New York "Times," reporting Mr. Washburn's death,
continuing said, in part:
Mr. Washburn began his career here (Chicago) in 1896, when he became a messenger boy for the Fort Dearborn National Bank. In 1907 he
was elected Assistant Cashier of the Continental National, his first official
position.
At the time of his death he was Chairman of the exchange committee
of the Chicago Clearing House Association and Vice-Chairman of the
commerce and marine commission of the American Bankers Association.
In 1910 he was Vice-President of the Illinois Bankers Association.
Oscar G. Foreman, retired Chicago banker, who for more
than fifty years was identified with the banking activities
of that city, died in Chicago on Mar. 6 after a prolonged
illness. He was 69 years of age. Mr. Foreman was born
In Chicago and educated in its public schools and a business college. His first position was as a messenger for
the old National Bank of Illinois, when he Was 17 years old.
Subsequently, at the age of 21, he entered the private banking house of his father, Gerhard Foreman. The Foreman
Brothers Banking Co. was organized in 1897 and Mr. Foreman held the office of Vice-President until 1915, when he
became President. After serving. as President until 1923
he became Chairman of the Board of the Foreman National
Bank and the Foreman Trust & Savings Bank, successors
to the Foreman, Brothers Banking Co. When in 1929 the
Foreman banks and the' Chicago State Bank were consolidated to form the Foreman-State National Bank and
the Foreman-State Trust & Savings Bank, Mr. Foreman
was made Chairman of the Executive Committee of both
Institutions. Two years later, 1931, he retired when the
Foreman banks were taken over by the First National Bank
of Chicago. The deceased banker was a former President
of the Illinois Bankers' Association and of the Chicago
Clearing House Association.
Checks were mailed on Feb. 27 for a 7% dividend by
L. 0. Lundgren, receiver of the closed Farmers' Bank at
Creston, Ill., according to the Chicago "Tribune" of Feb. 28,
Which added:
the bank
Payment of this dividend, comprising 4% from the assets of
total 87% paid
and 3% from the stockholders' assessment, will make the
liquidation.
to depositors during the year the bank has been in
Consolidation of the First National Bank of Chicago, Ill.,
and the First Union Trust & Savings Bank of Chicago, its
State bank affiliate, was announced on Thursday night, Mar.
9, by Melvin A. Traylor, President. Assets of the First
National, Chicago's second largest financial institution, it
was stated, were increased to $700,000,000 by the move.
Associated Press advices from Chicago,reporting the above,
went on to say:
Mr. Traylor said the consolidation was "in view of recent developments
and the prospect that banks which are members of the Federal Reserve
system may enjoy wider privileges."
The First National assumed all deposit liabilities, including savings
accounts, of its affiliate.
The consolidation was described as having been under consideration for
years. The announcement by Mr.Traylor said Federal and State authority
will
had been received and that the First Union Trust & Savings Bank
continue its trust business.
Dan H. Cooney, for the pa-st five years Executive VicePresident of the First National Bank of Menasha, Wis.,
on March 1 was appointed Executive Vice-President and
Trust Officer of the Security National Bank of Sheboygan,
Wis., according to the Chicago "Journal of Commerce" of
March 2. Mr. Cooney will continue as a director of the
Menasha bank, it was stated.
First American Stat- e Bank of Wausau, Wis.,
The First
representing a reorganization of the American National
Bank, opened for business on Mar. 1, according to the Milwaukee "Sentinel" of that date, which also stated that the
Presidency of the institution had been assumed by Fred.
K. McPherson of Milwaukee, who resigned as a VicePresident of the First Wisconsin National Bank of Milwaukee and of the Wisconsin Bankshares Corporation to
take the new position.
The Fort Calhoun State B- ank at'Fort Calhoun, Neb.,
closed since Jan. 13 1933, re-opened under its old management Thursday, Mar. 2, for the purpose of doing a limited
business under the new bank moratorium act, according to
Associated Press advices from Lincoln, Neb., on Mar. 2.
The reopening of three closed State banks in Nebraska
on Mar. 1, namely the Farmers' & Merchants' Bank of
Byron; the Germantown State Bank of Garland, and the
Financial Chronicle
Volume 136
Farmers' Bank of Dunbar, was reported in the following
dispatch by the Associated Press from Lincoln, Neb., on
that date:
.
Three bank openings under Nebraska's bank moratorium act were announced Wednesday (Mar. 1) by the State Commerce Department.
The banks will do a limited business and keep new deposits separate
in a trust fund while liquidating old deposits as fast as possible.
The Farmers' & Merchants' Bank of Byron, which suspended July 7
last, will be managed under the new system by A. E. Palling.
The Germantown State Bank of Garland, which suspended business
'eb. 9, will be managed by the old officers, as will the Farmers' Bank
f Dunbar which closed 10 days ago.
Supplementing our item of last week (page 1491) with
reference to the opening on Feb. 27 of the Mercantile-Home
Bank & Trust Co. of Kansas City, Mo., formed by the
union of the Mercantile Trust Co., the Home Trust Co., the
Main Street Bank and the Sterling Bank, the new organization is capitaliied at $200,000 with surplus and undivided
profits of $200,002, and has deposits of $4,755,412 and total
resources of $5,155,414. Officers are as follows: Alexander
Rieger, Chairman of the Board;John W.Wagner, Chairman
of the executive committee; S. M. Woodson, President;
Nathan Reiger, Sidney C. Walker, John A. Siemon, and
LeClair Lambert, Vice-Presidents; C. A. Broekhouse,
Secretary; Charles S. Metzler; Treasurer; Sam Wedlan,
Assistant Secretary; A. E. Keeney, Assistant Treasurer, and
John H. Yonts, Auditor.
Concerning the affairs of the Laclede Trust Co. of
St. Louis, Mo., which suspended operations on Jan. 16 last,
the St. Louis "Globe-Democrat" of March 4 contained the
following:
Depositors of the Laclede Trust Co. . . . held their third meeting
last night (March 3) at the Castle ball room,2839 Olive Street, and voted
confidence in the officials of the closed bank and in a move to reorganize
the institution.
B. T. Mattingly. attorney for the bank, and A. H. Rosenberg, Chairman of the depositors' committee, presided. In the reorganization plan
depositors will be able to withdraw 5% monthly. In the past week deposits
of $424.000 have been pledged in the reorganization and but $174,000
more in pledges is required to reopen the institution.
Dr. D. A. Thomson. President of the closed bank, attended the meeting.
William Artie Mays, Manager of the real estate department of the Continental Life Insurance Co., has been appointed President of the Wellston Trust Co., of St. Louis,
Mo.,according to the St. Louis "Globe-Democrat" of Mar.8.
He succeeds in the Presidency Fred Krone. Mr. Mays was
reported as saying that the Wellston Trust Co.has a capital
of $100,000 and surplus of like amount, and in its last
published statement showed resources of approximately
$1,187,000. The new executive, it was stated, went to
St. Louis seven years ago from Searcy County, Ark.
Statements of the assets and liabilities of the St. Louis
National Bank of St. Louis, Mo., and of the Twelfth Street
National Bank of that city, which closed on Jan. 13 and 16,
respectively, were made public on Feb. 28 by Edwin S.
Coombs, receiver for the two institutions. The St. Louis
"Globe-Democrat" of March 1, from which this is learnt,
continuing, said:
The statement of the condition of the St. Louis National on Jan. 13,
the date of its suspension, shows total assets of $1,961,055.27, against
liabilities of $1,788,797.77. Assets include bills receivable, $969,581.15;
cash on hand, $18,125.60, and other assets totaling $973,348.52.
Liabilities Included: Liabilities unsecured, $1,185,852.77; deposits
secured by pledge of assets of the bank aggregating $56,275.26 as collateral, $80,215.93, and bills payable, secured by pledge of assets of the
bank aggregating $927,276.68 as collateral, $478,020.07.
The statement of the Twelfth Street National on the date of its closing,
Jan. 16, shows total assets of $1,523,104.63, and liabilities of $1,205,126.12.
Assets include: Bills receivable, $596,395.25; cash on hand, $77,630.95,
and other assets, $849,078.33. Liabilities: Liabilities unsecured, $848,066.12; deposits secured by pledge of assets of the bank aggregating $5,000
as collateral, $5,000, and bills payable secured by pledge of assets of the
bank aggregating $560,702.89, as collateral, $361,160.
The St. Louis "Globe-Democrat" of Mar. 3 stated that
depositors of the closed University City Bank & Trust Co.
of University City, Mo., with accounts representing approximately $150,000 of the deposits of the institution, had
signed agreements to a reorganization proposal, according
to an announcement made Mar. 2 by Lloyd T. Smith, President of the University City Chamber of Commerce. The
paper mentioned went on to say:
Something more than $200,000 will have to be signed to make the
plan effective.
Members of the depositors' committee have expressed satisfaction over
the progress of the reorganization work, but will mail out another series
of letters to depositors urging their early acceptance.
The bank was placed in the hands of the State Finance Commissioner
Jan. 12 (1088) because of heavy withdrawals.
••••••••44.
1691
Further referring to the affairs of the closed Bank of
Maplewood & Trust Co. of Maplewood, Mo., which suspended operations the early part of February pending an
agreement with its depositors on a plan of reorganization,
the St. Louis "Globe-Democrat" of Mar. 3 printed the following:
Approximately 75% of the more than $800,000 on deposit with the
closed Bank of Maplewood & Trust Co., 7373 Manchester Avenue has
been pledged to support the plan for its reorganization, A. W. Larson,
Chairman of the depositors' committee, announced yesterday (Mar. 2).
The committee has been holding nightly meetings and has representatives
at the hank during the days and from 7 to 9 o'clock at night. Larson
said one point of the plan was not clear to some depositors—that their
subscription of stock, amounting to 10% of their deposits, will not
incur a double liability under the State Banking Laws.
The bank was closed Feb. 3 to permit reorganization and has not been
officially placed in the hands of the State Finance Commissioner.
Previous items regarding the affairs of this bank appeared in our issues of Feb. 4 and Feb. 25 1933, pages 787
and 1312, respectively.
Advices from Cherryville, N. C., on March 6, to the New
York "Journal of Commerce" stated that Dr. L. L. Self,
President of the Carlton Yarn Mills, Inc., Nuway Spinning
Co., Inc., and a director of several other companies, has been
advanced to.President of the Cherryville National Bank of
Cherryville, of which he was Vice-President, to succeed the
late Daniel E. Rhyne, prominent textile executive of Laboratory, N. C. At the same meeting, it was stated, the directors
elected O. A. Rudisill, Secretary and Treasurer of the Carlton Yarn Mills, Inc., and Manager of the Nuway Spinning
Co., Inc., and W. B. Rhyne, Secretary and Treasurer of the
Cherryville Manufacturing Co., and Secretary and Treasurer of the Howell Manufacturing Co., and an officer in
other mills, as Vice-Presidents.
That depositors of the defunct First National Bank of
Sebring, Fla., were to receive a third dividend on March 1
was reported in the following dispatch by the Associated
Press from that place on Feb. 27:
Harry Fagan, receiver for the First National Bank here, announced
to-day (Feb. 27) a third dividend, amounting to $20,000, will be paid
Wednesday. Two previous dividends of 10% each have been paid, and
this one will bring the total to almost $100,000. The bank failed in
February 1929 with $400,000 in deposits.
It is learnt from Mansfield, La., advices on Mar. 4, printed
in the New Orleans "Times-Picayune," that a charter of
incorporation has been filed for a new bank in Mansfield,
under the title of the De Soto Bank & Trust Co. The new
institution is capitalized at $100,000, represented by 20,000
shares of par value of $5 each. It is provided that capital
stock shall be paid in cash at the price of $5.50 per share
the difference between the amount paid in and the capital
stock being placed in surplus. Officers of the institution
were named in the advices as follows: E. T. Robinson,
Chairman of the Board; W. C. Nabors, President; W. A.
Roach, Frank Hunter, and N. W. Jenkins, Vice-Presidents;
W. F. Moore, Vice-President and Cashier and J. W. Dubois,
Jr., and R. D. Darnell, Assistant Cashiers.
With reference to the affairs of the Ascension Bank &
Trust Co., of Donaldsonville, La., the closing of which on
Feb. 9 last was reported in our Feb. 18 issue, page 1153, a
dispatch from Donaldsonville on Feb. 28 to the New Orleans
"Times-Picayune" contained the following:
State Bank Commissioner J. S. Brock has applied to the District Court
for an order placing the Ascension Bank & Trust Co. In liquidation. He
has appointed the following: Leo Oafier, special agent and liquidator;
Richard T. Hanson, clerk and bookkeeper for liquidator, and Caleb 0.
Weber as attorney for the special agent and liquidator. These appointments have been confirmed by petition presented to Judge Henry L. Himel
of the 23rd Judicial Court.
The officers have qualified by furnishing bond, and have taken over
the affairs of the institution.
Louis J. Derbes, auditor, has been employed by the liquidator to make
a complete audit of all of the affairs of the bank. Upon the completion of
this audit it is the hope of those in charge that some plan may be formulated that will not require the liquidation of the bank through a
liquidator, but that some sort of reorganization or creation of a new
bank may be formed in order to protect the depositors of the institution
to the fullest extent.
It was agreed by the officers appointed that they would work to this
end and that if it was feasible to work out a plan that would meet with
Mr. Brock's approval that some form of reorganization of the bank would
be undertaken. The officers appointed by Mr. Brock hope that the appointment of the liquidator will not be permanent and that after the
completion of the audit, some plan will be worked out to protect the
Interest of the depositors. When this audit is completed and after a
thorough examination and estimate has been placed upon the assets of
the bank, a meeting will be called of the depositors, at which the whole
matter will be laid before them.
The liquidator and hi, attorney state that they will use their every
effort to bring about the results that the community and the depositors
hope for.
1692
Financial Chronicle
The suspension on March 3 of two banks in Grand Junction, Colo-the United States Bank and the Grand Valley
National Bank-was reported in a dispatch by the Associated Press from Grand Junction on the date named, which
said:
The United States Bank of Grand Junction did not open for business
'to-day and announced temporary closing under a local moratorium.
The Grand Valley National Bank closed its doors, announcing it did so
to protect its depositors but that it was in condition to pay in full. Each
bank has deposits of about $1,000,000.
The closing for reorganization of the Stockgrowers' &
Farmers' National Bank of Wallowa, Ore., was indicated
in a dispatch by the Associated Press from La Grande, Ore.,
on Feb. 27, which went on to say:
A banking holiday to continue until Apr. 3 was announced and officers
hoped to reopen the bank on that date. The bank at Wallowa is one of
two in Wallowa County.
John F. G. Gilliat has been appointed to a seat on the
Board of Directors of the Standard Bank of South Africa,
Ltd. (head office London) to fill the vacancy caused by the
death of Lord Sydenham of Combo.
COURSE OF BANK CLEARINGS.
Owing to the general suspension of banking operations
throughout the country and the fact that, as a consequecne,
the clearing houses have had no checks to clear, we are
unable to present out customary telegraphic figures of
bank clearings for the current week. Our compilation of
bank clearings for the week ended last Saturday is presented below. Due to the disturbed condition of the
country's banking operations, returns of clearings for this
past week have been received from less than half the cities
usually included in the table, and of those received, the
majority are for only a five-day period (so many States
having already suspended banking operations last Saturday)
while some of the rest are for even shorter periods'. The
clearings at those cities from which returns have been
received show a decrease of 19.2% below the grand total
of the same cities for the corresponding week a year ago.
These include New York, where the five-day figures the
present year compare with six days last year, there having
been no clearings last Saturday; outside of New York the
decrease is 26.7%. It is to be noted, however, that while
figures were received from New York, Chicago, and Pittsburgh, other large cities including Boston, Philadelphia,
Cleveland, Baltimore, New Orleans, Detroit, St. Louis,
Minneapolis, Kansas City, Mo., Dallas, and San Francisco,
failed to make any report.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
1932.
1933.
Week Ended Mar.4 1933.
Inc.or
Dec.
1931.
1930.
$
%
$
$
Federal Reserve Dists.
40,954,112
30,542,950 -17.7
25,144,220
1st Boston__ _ _ 8 cities
3,546,334,524 4,325,260,673 -18.0 6,823,015,766
2nd New York_ 6 "
17,521,294
10,587,459 -12.6
9,255,115
3rd Philadel'la_ 7 "
217,470,592
142,662,580 -14.1
122,574,508
ith Cleveland__ 4 "
43,721,633
31,147,966 -11.3
27,634,075
5th Richmond _ 4 "
18,327,796
12,514,097 -39.2
7,609,157
6th Atlanta__ 3 "
509,092,644
295,254,234 -34.2
194,416,011
7th Chicago --- 3 "
39,160,291
29,842,423 -31.5
20,432,249
2 "
8th St. Louls__.
22,985,525
17,261,078 -18.0
14,159,545
9th Minneapolis 1 "
55,522,542
32,926,331 -37.0
20,749,364
10th KansasCity 5 "
4,021,077
2,785,307 -53.9
1,284,531
1 "
11th Dallas
26.563,253
16,856,268 -44.5
9,350,490
12th San Fran 5 "
$
47,464,160
7,354,662,481
29,744,263
248,716,381
50,966,268
25,886,832
643,966,116
65,364,546
23,657,272
71,296,611
6,203,217
31,845,615
7,818,356,525
1,084,329,157
8,699,773,762
1,343,671,164
cm
445 170 MA
54 cities
Total
Outside N. Y. City
3,998,536,667
505,635,721
4,947,641,376 -19.2
689,620,792 -26.7
on mann
nn. on,. .e.
nee eon el 0 -1A A
1A1 ORA
We now add our detailed statement, showing last week's
figures for each city separately for the four years:
Week Ended March 4.
Clearings at
1933.
1932.
$
-Boston
First Federal Reserve Dist riot
470,270
713,304
Mass.-FallRiver
262,526
387,578
Lowell
571,218
707,405
New Bedford
1,896,240
2,448,885
Worcester
9,920,171
8,291,387
Conn.-Hartford
5,563,122
7,446,829
New Haven_ _
8,196,500
7,584,600
R.I.
-Providence
722,278
504,857
N.H.-Manches'r
Total(8 cities)-
25,144,220
Inc.or
Dec.
1931.
1930.
-34.0
-32.3
-19.3
-22.6
-16.4
-25.3
-7.5
-30.1
818,969
462,001
938,128
3,243,981
14,560,115
8,310,689
11,978,100
642,129
1,085,325
949,649
1,119,473
3,493,400
17,050,134
9,128,889
13,806,500
830,790
30,542,950 -17.7
40,954,112
47,464,160
Second Federal Reserve Dist rict-New Y ork1,235,478
954,527 -10.5
1,352,628
853,930
N.Y.-Bing'mt'n
1,021,644
649,532 -3.9
624,341
1,286.864
Jamestown_ _
New York_ _ _ 3,492,900,946 4,258,020,584 -18.0 6,734,027,368 7,256,102,598
13,123,301
9.726,207 -32.2
13,147,084
6,596,960
Rochester
35,466,658
27,704,282 -30.6
33,729,838
19,219,023
-Newark._
N. J.
38,141,317
49,063,469
28,139,324
28,205,541 -7.3
Northern N. J_
Total(6 cities). 3,546,334,524 4,325,260,673 -18.0 6,823,015,766 7.354,662,481
March 11 1933
Week Ended March 4.
Clearings at
1933.
1932.
Inc. Or
Dec.
1931.
$
Third Federal R eserve Distal ct-Philadel ph iaPa.
-Altoona__ _ _
315,453
486,638 -35.2
Chester
342,667
567,577 -39.6
Lancaster
862,113
1,106,648 -22.1
Scranton
2,755,721
3,046,046 -9.5
Wilkes-Barre_ _
1,599,107
1,715,725 -6.8
York
877,054
1,192,825 -26.5
N.J.
-Trenton
2,503,000
2,472,000 +1.3
Total(7 cities)-
9,255,115
10,587,459 -12.6
1930.
505,675
921,641
2,602,787
4,932,242
3,367,245
1,865,704
3,326,000
1,411,240
1,121,653
2,497,831
4,941,897
3,405,613 •
2,064,029
4,302,000
17,521,294
29,744,263
Fourth Federal Reserve Dist rict-Clevel andOhio
-Akron_ _
211,000
425.000 -50.4
Canton
Cincinnati....
17,043,917
46,051,021 -63.0
Mansfield
133,411
914,355 -85.4
b.
Youngstown _ _
95,272.204 +10.4
Pa.
-Pittsburgh _ 105,186,180
153,314,964
176,584,593
142.662,580 -14.1
217,470,592
248,716,381
Fifth Federal Reserve Dist rict-Richm ond235,404
420,022 -44.0
W.Va.-HtultIon
2,859,910 -9.3
2,593,000
Va.-Norfolk__ -24,057,019
26,972,247 -10.8
Richmond _ --748,652
895,787 -16.4
S.C.-Charleston
634.909
3,933,416
37,052,500
2,100,808
1,356,771
4,750,010
42,477,000
2,382,487
Total(4 cities)_
122,574,508
3,431,000
3,957.000
59,148,212
1,576,416
68,223,000
1,951,788
31,147,966 -11.3
43.721,633
50,966,268
Sixth Federal Reserve Dist rict-Atlant a11,156,017 -38.1
6.904,804
Tenn.
-Nashville
633,207
1,229,247 -48.5
Ala.
-Mobile- _- 71,148
128,833 --44.8
Miss.
-Vicksburg
16,265,757
1,887,707
174.332
23,610,012
2,011,840
234,980
12;514.097 -39.2
18,327,796
25,886,832 .
Total(4 cities).
Total(3 cities) _
27,634,075
7.609.157
Seventh Feder al Reserve D istrict-Chic ago771,811 --84.5
1,100,692
274,211
Mich.
-Ann Arbor
4,988,048
3,486,020 -69.0
1,079,413
Grand Rapids_
2,780,484
1,260,921 ---67.0
Ind.
416,274
-Ft. Wayne
2,166,864
1,460,851 ---40.8
South Bend_._
86,438
3,729,228 -32.8
5,179,515
Terre Haute_ _ _
2,504,338
27,917,266
8,084,663
18,251,832 -55.7
Wis,-Milwaukee
Iowa-Ced. Rap_
f
Waterloo
Ill.
-Chicago.--- 181,539,347 265,741,487 -31.7 463,905,646
1,054,129
431,327
552,075 -21.9
Decatur
982,964
5,756,815
3,770,506
2,769,666
6,161,722
32,853,501
590,370,181
1,300,761
295,254,234 -34.2
509,092,644
Eighth Federa I Reserve Dis trict-St.Lo uisInd.
-Evansville_
_
13,523,941
18,174,440 -25.6
Owensboro _ - Tenn.
-Memphis
6,908,308
11,667,993 -40.8
24,465,107
44,390,056
14,694,784
20;74,490
'
3
1
20,432,249
Total(8 cities).
Total(2 cities)-
194,416,011
29,842,433 -31.5
643,966,116
39,160,291
65,384,546
Ninth Federal Reserve Dis trict-Mlnne spoilsMinn.
14,159,545
17,261,078 -18.0
-St. Paul_
22,985,525
23,657,272
17,261,078 -18.0
22,985,525
23,657,272
Tenth Federal Reserve Dis trict-Kansa s City24,397,684 -34.7
Neb.-Omaha _
15,943,138
1,593,404
2,157,992 -26.2
Kan.
-Topeka
4,643,748 -53.1
2,180,183
Wichita
Colo.
853,058 -30.4
-Col. Spgs.
593,320
a
a
Denver
873,849 -49.7
439,819
Pueblo
43,961,448
3,231,887
5,796,197
1,106,619
a
1,426,391
56.279,108
3,994,871
7,760,067
1,285,332
a
1,977,233
32,926,331 -37.0
55,522,542
71,296,611
Eleventh Fede ral Reserve District
-Da las2,785,307 -53.9
La.
-Shreveport _
1,284,531
4,021,077
6,203,217
4,021,077
6,203,217
Total(1 city)..
Total(5 cities)-
Total(1 city)..
14,159,545
20,749,864
1,284,531
2,785,307 -53.9
Twelfth Feder at Reserve D istrict-San Fraudi sco-Wash.
-Yakima _
135,516
538,388 -74.8
1,076,281
Utah-S. L. City
6,475,704
9,904,989 -34.6
14,347,625
Ca111.-L. Beach_
1,355,667
3,349,143 -59.5
6,581,840
Los Angeles... No longer wi 11 report clear logsSan Diego_ _
San Jose
659,204
1,797,530 -63.3
2,736,807
1,266,218 -42.8
Stockton
724,399
1,820,700
1,173,059
17,225,492
7,971,664
2,966,400
2,509,000
16,856,268 -44.5
Total (5 cities)9,350,490
26,583,253
31,845,615
Grand total (54
3,998,536,667 4,947,641,376 -19.2 7,818,356,525 8,599,773,762
cities)
Outside NewYork
505,635,721
689,620,792 -26.7 1,084,320,157 1,343,671,164
TVeek Ended March 2.
Clearings at1933.
Canada
Montreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
_
New Westminster
Medicine Rat..Peterborough__
Sherbrooke
Kitchener
Windsor
Prince Albert---Moncton
Kingston
Chatham
Sarnia
Sudbury
Total(32 cities)
70,117,209
83,052,425
25,246,785
11,489,048
3,276,934
3,076,208
1,967,029
3,012,078
4,174,620
1,274,075
1,181,981
2,279,464
2,556,325
2,211,434
233,459
308,748
974,334
397,466
548,626
393,725
389,245
154,140
449,987
400,839
798,186
2,358,141
220,131
644,467
421,266
388.943
313,149
412,014
224,722,481
1932.
Inc. or
Dec.
1931,
1930.
86,699,559 -19.1
83,596,105 -0.7
36,917,208 -31.6
14,892,535 -22.8
5,346,624 -38.7
4,257,573 -27.7
2,379,406 -17.3
3,994,314 -24.6
4,964,916 -15.9
1,692,691 -24.7
1,544,335 -23.5
3,095,805 -26.4
3,901,263 -34.5
3,354,852 -34.1
361,301 -35.4
326,150 -5.3
1,524,168 -36.1
514,852 -22.8
793,233 -30.8
572.843 -31.3
.502,198 -22.5
187,704 -17.9
539,030 -16.5
622,238 -35.6
840,173
2,170,340 +8.2
338,598 -35.0
811,022 -20.5
568,780 -25.9
463,646 -16.1
365,889 -14.4
4581,464 -29.1
123,028,793
125,698,788
35,233,177
16,874,808
6,458,026
6,481,435
3,166,784
5,289,122
5,398,211
2,587,659
2,945,270
3,252,888
5,162,069
3,752,384
421,230
457,449
1,863,953
855,917
880,024
750,277
726,099
265,067
799,392
952,354
1,333,880
3,543,575
424,359
894,935
657,664
654,722
574,264
603,510
161,477,515
138,838,098
51,475,945
23,419,113
8,501,664
6,083,168
3,577.990
6,888,245
10,130,411
2,715,620
2,504,494
3,732,434
5,835,285
3,872,177
459,098
551,659
2,335,887
1,070,745
1,170,898
870,751
946,262
403,161
916,915
1,057,812
1,619,408
4,793,121
507,593
992,413
900,419
582,420
788,354
1,172,257
268,729,815 -16.4
361,988,085
450,170,838
a No longer reports weekly clearings. b Clearing house not functioning at
present. e No longer reports clearings. f Only one bank open: no clearings figures
available. •Estimated.
Financial Chronicle
Volume 136
1693
THE ENGLISH GOLD AND SILVER MARKETS.
We reprint the following from theiweekly circular of
_ -Sai=Monr& Co. of London, written underAdate of
Feb. 22 1933:
PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
as received by cable each day of the past week have been
as follows:
GOLD.
The Bank of England gold reserve against notes amounted to E132,262,947
on the 15th inst., an increase of £5,055,556 as compared with the previous
Wednesday.
Purchases of bar gold by the Bank of England have again been a feature,
tre amount acquired during the week being £9,983,085.
Movements in exchanges having been more favorable to the franc than
t,,citlirCrollar, the pr ce of gold has been
Freñclrexchange.
gold on offer in the open market was taken for export, but there was a
Certain amount of competition, as t e amounts available were extremely
small.
Quotations during the week:
Per Fine
Equivalent Value
Ounce.
of £ Sterling.
Feb. 16
120s. 1)4d.
14s. 1.73d.
Feb. 17
120s. 9.344.
14s. 0.79d.
Feb. 18
120s. 5d.
14s. 1.324.
Feb. 20
120s. figd.
14s. 1.144.
Feb. 21
14s. 1.144.
120s. 6g4.
Feb. 22
121s. ad.
13s. 11.584.
Average
1205. 8.17d.
148. 0.954.
The following were the United Kingdom imports and exports of gold
registered from mid-clay on the 13th inst. to mid-day on the 20th inst.:
Mar. 4 Mar. 6 Mar. 7 Mar. 8 Mar. 9 Mar. 10
1933. 1933. 1933. 1933. 1933. 1933.
Francs. Francs. Francs. Francs. Francs. Francs.
11,450 11,395 11,550 11,515 11,550
Bank of France
1, 5
28
57
5
1,560
1,560
1,527
Banque de Paris et Pays Bas- 1,503
406
-405
404
_--409
Banque d'Unlon Parisienne___
_
241
240
Canadian Pacific
16,245 16,895 17,010 17,020 16.970
Canal de Suez
2,180
---2,130 2,145 2,185 2,135
Cle DIstr d'Electricite
2,220
2,145 2,175 2,215 2,210
Cie Generale d'Electricite
51
57
53
56
54
Cie Generale Transatlantique_
513
500
478
491
Citroen B
1,125
1,130
1,119
Comptoir Nationale d'Eseompte 1,115
-155
185
185
185
190
Cots In•
357
359
---355
354
352
Courrieres
__752
754
764
740
Credit Commercial de France
749
4,670 4.730
Credit Fonder de France
Credit Lyonnais
2,120 2,105 2,155 2:i5i
Distribution d'Electricite Is Par --- ---------Eaux Lyonnais
2:340 2:566
----655
-551
625
Energie ElectrIque du Nord_
625
626
---960
---Energie ElectrIque du Littoral._
958
960
950
947
56
'French Line
____
52
53
---92%
_
---92
Galeries Lafayette
94
799818
Gas le Bon
798
---Kuhlmann
542
----545
529
539
526
VAIr LIqulde
795
810
784
---806
788
Lyon (S. L. M.)
1,018
1,005
-.
1.008
356
Mines de Courrieres
355
---555
------- 458451
Mines des Lens
446
1,405
Nord RY
1.399
1:465
1,415
1,405
---952
965
973
972
Orleans Ry
956
Paris, France
-112
107
105
105
Pathe Capital
1,053
1:665
983 1,030
966
Pechiney
76.90 76.60 77.40 76.90 76.70
R.entee 3%
7 :56
6
Rentes 5% 1920
117.90 118.00 118.35 118.10 117.75
85.60 sKiii
Rentes 4% 1917
85.50
- .55 06.65 90.00 90.05
0
-.
0
Rentes 4%% 1932 A
90.35 9 - 65 9 1,511
1,475
1,495
-Royal Dutch
1,395
1:557
_1,310
1,300
1,325
Saint Gobain C.& C
1,445
1,400
1,395
1,388
Schneider & Cie
1,383
_ --504
Societe Andre Citroen
- -----____
90
_--Societe Franeaise Ford_
155
148
Societe Generale Fondere
147
148
2:446 2,415
Societe Lyonnais°
2,390
2,345
2,340
_583
583
Societe Marsellaise
582
584
586
.
---Sues
16,950 17,00016,960
..-_.
Tubtze Artificial Silk prat
156
158
152
-. 56
1
141
772
Union d'Electricite
772
763
765
758
Union des Mines
Wagon-Lit.s
72
71
70
70
70
•
Imports.
British South Africa- _ _ _ _ £2.588,326
British India
472,769
Australia
52.133
New Zealand
8,238
British Malaya
20,493
U. S. A
29,080
Greece
149,070
Netherlands
6476
Other countries
10,469
Exports.
1.. S. A
T
Netherlands
France
Belgium
Other countries
£3.337,094
£209.329
400,050
237,216
35,400
7.600
£889,595
The SS. Rawalpindi, which sailed from Bombay on the 18th inst., carries
gold to the value of about £482,000, of which £130,000 is consigned to
London and £352,000 to New York.
Large quantities of sovereigns are still being received in this country
from South Africa.
On the 16th inst. the Imperial Bank of India reduced its rate of discount
from 4% to 3)4%.
SILVER.
The week has seen a firmer market, prices advancing from 16 11-164.
for cash and 16)(d. for two months' delivery fixed a week ago to 17 3-164.
and 17)44. for the respective deliveries quoted yesterday. The serious
developments In the Far East were followed by China buying, while anothe
factor was a renewal of speculative activity in New York, substantial purchases for this quarter having been made towards the end of the week.
To-day,following easier advices from New York and Shanghai, there was a
reaction, prices declining 3-16d. to 17d. and 17 1-164.
1=
Incertainty owing to the situation in China caused sellers to hesitate
and, although sales were made by the Indian bazaars and the Continent,
offerings were very moderate.
The following were the United Kingdom imports and exports of silver
registered from mid-day on the lrith inst. to mid-day on the 20th inst.:
Imports.
Exports.
British India
£25.520 British India
£15,950
Australia
14,316 Canada
1,914
Japan
6,900 Norway
1,043
Poland
19,300 Other countries
3,361
Germany
9,680
British West Africa
3,899
Other countries
1,048
£22,268
£80.663
Quotations during the week:
IN LONDON.
IN NEW YORK.
-Bar Silver per oz. std.
Cash Delis. 2 Mos.'Del.
(Per ounce .999 fine.)
Feb. 16-16 11-164.
16)(d.
Feb. 15
26c.
Feb. 17___1613-16d.
163cl.
Feb. 16
263.4e.
Feb. 18--.16gd.
16 15-164.
Feb. 17
26%c.
Feb. 20-16 15-164.
17d.
Feb. 18
26.
Feb. 21-17 3-16d.
17)(d.
Feb. 20
27)4c.
Feb. 22-....17d.
17 1-164.
Feb. 21
..26)4c.
Average---16.917d.
16.979d.
The highest rate of exchange on New York recorded during
the period
from the 16th inst. to the 22d Inst. was $3.44)4 and the lowest
$3.4034...0
INDIAN CURRENCY RETURNS.
(In Lacs of Rupees)
Feb. 15.
Feb. 7.
Jan. 31.
Notes in circulation
17432
17415
17435
Sliver coin and bullion in India
10946
10931
10954
Gold coin and bullion in India
2561
2552
2552
Securities (Indian Government)
3925
3932
3927
The stocks in Shanghai on the 18th inst. consisted of about 156,900.00a
ounFra In sycee, 217,500.000-dollareind
-12,340 eilver bars, as compared
with about 153.600,000 ounces in sycee, 215.000,000 dollars and 10.640
silver bars on the 11th twit.
ENGLISH FINANCIAL MARKET
-PER CABLE.
The daily closing quotations for securities, &c.,atiLondon,
as reported by cable, have been as follows the past week:
Sat..
Mar.4.
Mon..
Tues.,
Wed.,
Thurs.,
Fri.,
Mar.6.
mar.7.
Mar.8.
Mar. 9. Mar. 10.)
17 11-160, 17)40.
Silver, per oz_
18g0.
18 7-160. 18,3-16cli
Gold, p.fine oz.120s. 8d. 119s. 76. 119s. 7d. 1188. lid. 119s. 7)4(1. 1198.2)40
.
73g
Consols, 2348-- 73
72%
73ho
73%
73
British 334%
99
war Loan--- 9934
993(
99g
993.4
993.4
British 4%
1060-90
110)(
11034
110
11034
11034
110%
French Rentes
70.70
77.40
76.90
(in Paris)3% tr. 76.25
76.70
76.95
French War L'n
Paris)5%
118.35
118.00
118.10
1920 amort__117.90
117.75
The price of silver in New York on the same days has been:
Silver in N. Y.,
per oz. (ets.) Holiday
29g
29%
29% J
30
ANL2931
• 1:118
THE BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange resumed trading on Friday,
April 29 1932,after having been closed by Government decree
since Sept. 18 1931. Closing prices of representative stocks
as received by cable each day of the past week have been
as follows:
Mar. Mar. Mar. Mar. Max. Mar.
8.
6.
9.
7.
10.
4.
Per Cent of Par
Relchsbank (12%)
149
140 134
152 151
151
Berliner Handels-Gesellschaft (5%)
95
95
95
93
95 .96
Commerz-und Privat-Bank A. G
53
53
53
52
5334 53
Deutsche Bank und Disconto-Geownschaft- 70% 71
71
71
70
70
Dresdner Bank
61
61
61
61%
Deutsche Relchsbahn (Ger. RYs.) Pi. (7%)-11911455E 95
96
96
96
96
Allgemelne Elektrizitaets-Gesell. (A-E.G.). 3111 32
32
31
32
34
Berliner Kraft u. Licht (10%)
27
125 125
121% 113 125 128
119
Dessauer Gas (7%)
118
119
119
88
Gesfuerel (4%)
88
87
90
118
116
18166
Hamburg. Elektr.-Werke (8.14%)
118 118
113 11 118
81
147
141
Siemens & Halske (7%)
144
150
I. G. FarbenIndustrie (7%)
17 M 188 119
3
8
4
123
120 120
42
18
191
190 192
186
Salzdetfurth (9%)
Rhelnische Braunkohle (10%)
8
2
94 212 209 209 206 209
141 9
101
100
99
Deutsche Erdoel (4%)
102
67
Mannesmann Roehren
87
66
68
18
4
62H 6
17
Hapag
18
18
19
18
18
19
Norddeutatter Lloyd
19
18
18)4 18
•Proposed.
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 December
1932 and January, February and March 1933:
Holdings in U. S. Dreamy Dec. 1 1932. Jan. 1 1933. Feb. 1 1933. Mar. 1 1933.
Net gold cola and bullion_
Net silver coin and bullion
Net United States notes.Net National bank notes..
Net Federci Reserve notee
Net Fed. Has, bank notes
Net subsidiary silver
Minor coin,4ce
$
238,861,180
26.653,183
2,859,811
16,060,345
5,314,175
25,744
12,578,144
6,264,166
$
$
255.001,543 254,023,372
26.668,099
33.394,828
3375,901
3,050,111
16.783,685 17,696,444
5,106,090
5,650,690
35,652
49,833
12,793,047
14,212,786
6.875.235
7,358,351
Total cash in Treasury_
Lees gold reserve fund,
308,616,748
156,039,088
326,313,462
156,039,088
335,562,205 *356.520.958
156,039,088 156,039.088
Cash balance In Treas'y 152,577,660
Dep. In spec'l depositories
account Trearry bonds,
Treasury notes and certificates of indebtedness 538,079,000
Dep. In Fed. Res. bank
36.946,737
Dep. In National banks
To credit Treas. U. S....
6,884,683
To credit dish, officers.
19,199.609
Cash in Philippine Islands
1,184,970
Deposits In foreign dents_
1,247,383
Dep.in Fed. Land bank.,,
170,274,374
179,523,117
200,481.870
484,960.000
49.326,952
266,141,000
60,497,092
177.273.000
45,672,685
7,594,261
23,314,840
1,110.733
980,358
7,364,027
19,692,277
867,526
1,831,996
7.444,818
19.362,281
1,063,129
1,071,157
$
280,851,466
35,717,372
1,744,383
14,442,822
1,506.740
58,679
15,368,930
6.830,566
Netcash in Treasury
and In banks
Deduct current liabilities_
756,120,042
166,390,538
737,561,518
182,809,523
535,917,035
208,434,232
452,368,940
230.888,564
Available cash balance_
589,729.504
554,751,995
327.482.803
221.480.376
• Includes Mar. 1 518,005,655 silver bullion and $5,466,859 minor, &o., coin
not included in statement "Stock of Money."
Financial Chronicle
1694
Government Receipts and Expenditures.
Through the courtesy of the Secretary of the Treasury
we are enabled to place before our readers to-day the details of Government receipts and disbursements for February,
1933 and 1932, and the eight months of the fiscal years
1932-1933 and 1931-1932:
General Funds.
Receipts—
Internal revenue—
Income tax
=seeII. Internal revenue
—Month of February— —July 1 to Feb. 28
1932-33.
1933.
1932.
1931-32.
$
$
22,303,434
35,568,900
Excess of receipts
Excess of expenditures
383,332,028
521.373,436
658,121,342
345,954,516
904,705,464 1,004,075,858
172,445,281 247,761,280
13,437
65,820,737
466,104
10,339,547
13,612,539
30,839,606
187,745,524 1,527,459,564 1,755,301,674
4,397,086
362,163,350
418,764,000
308,211,426
355,299,200
1,501,763
7,096,872
20,000,000
731,730
8,397,996
38,599,341
65,244,373
6,835,670
12,163,761
53,974,425
125,000,000
7,090,936
67,095,653
67,095,653
63,243,740
a242,545
63,243,740
2,252,771
a13,284,698
92,239,173
17,925,195
100,000,000 .S, 200,000,000
20,850,000 _ 20,850,000
416,000 i
215,000
7,775.000 ii 9,500,000
198.992,019 354,065,139 2,560,903.246 3,070,184,989
90,444,722 266,428,091 1,362.660,531 1.753,761,375
Special Fund..
Receipts—
Applicable to public debt retirements—
Principal—foreign oblige's_
Interest—foreign obliga'ns.
From estate taxes
From franchise tax receipts
(Fed. Res. banks az Fed.
lntermed. Credit banks)
5,000
From forfeitures, Mita. 5tc3,144,990
Other
4,000
1,559,825
2,011,418
20,500
17,011,451
21,294
30,000
18,088,169
3,149,090
1,563,825
51,960,482
18,139,463
5,000
1,258,977
4,000
3,616,702
35,943,900
13,635,791
30,000
45,365,585
1,263,977
3,620,702.
49,579,691
45,395,585
Total
Expenditures—
Public debt retirements
Other
Total
Excess of receipts
Excess of expenditures
31,553,763
1,363,350
1,886,013
2,380,791
2,056,877
Total
1,933,212,400.00
6,268,095.250.00
Treasury bonds
434% bonds of 1947-52
4% bonds of 1944-54
341% bonds of 1946-56
344% bonds of 1943-47
344% bonds of 1940-43
335% bonds of 1941-43
334% bonds of 1946-49
3% bonds of 1951-55
758.983,300.00
1,036,834,500.00
489,087,100.00
454,135,200.00
352,994,450.00
544,916.110.00
821,400.500.00
764,488,000.00
Total bonds
Treasury Notes
3% Series A-1934, maturing May 2 1934
234% Series 13-1934, maturing Aug. 1 1934,_
3% Series A-1935, maturing June 15 1935
33.1% Series A-1936, maturing Aug. 1 1936_
241% Series 13-1936, maturing Dec. 15 1936
341% Series A-1937, maturing Sept. 15 1937_ _
3% Series /3-1937. maturing Apr. 15 1937
23‘4% Series A-1938, maturing Feb. 1 1938_
$14,230,164,320.00
244,234,600.00
345,292,600.00
416,602,800.00
365,138,000.00
360.533,200.00
834,401,500.00
508.328,900.00
277,516,600.00
$3,352,048,200.00
4% Civil Service Retirement Fund, Series
1933 to 1937
d% Foreign Service Retirement Fund, Series
1933 to 1937
4% Canal Zone Retirement Fund, Series 1936
and 1937
219,300,000.00
2,100,000.00
2,141,000.00
3,575.589,200.00
Certificates of Indebtedness
331% Series TM-I933. maturing Mar. 15 1933
2% First Series. maturing Mar. 15 1933
2% Series 11-1933, maturing May 2 1933
% Series TJ-1933, maturing June 15 1933_
-1933, maturing Sept. 15 1933_
134% Series TS
41% Series TD-1933, maturing Dec. 15 1933_
5660,715,500.00
33,591,400.00
239,197,000.00
373,856,500.00
451.447,000.00
254,364,500.00
$2,013,171,900.00
4% Adjusted Service Cif. Fund, Series maturing Jan. 1 1934
124,700,000.00
2,137,871,900.00
Treasury Bills (Maturity Value)—
Series maturing Mar. 1 1933
Series maturing Mar. 29 1933
Series maturing Apr. 12 1933
Series maturing Apr. 19 1933
Series maturing Apr. 26 1933
Series maturing May 10 1933
Series maturing May 17 1933
Series maturing May 24 1933
Total interest-bearing debt outstanding
Matured Debt on Which Int. Has Ceased—
Old debt matured—Issued prior to Apr. 1 1917
4% and 434% Second Liberty Loan bonds of
1927-42
414% Third Liberty Loan bonds of 1928
334% Victory notes of 1922-23
441% Victory notes of 1922-23
Treasury notes, at various interest rates
Ctfs. of indebtedness, at various rates of int
Treasury bills
Treasury savings certificates
Debt Bearing No Interest—
United States notes
Less gold reserve
27,256,122
$100,000,000.00
100,039,000.00
75,090,000.00
75,032,000.00
80,020,000.00
75,228,000.00
75,202,000.00
60,074,000.00
Deposits for retirement of National bank and
Federal Reserve bank notes
Old demand notes and fractional currency
_
Thrift and Treasury savings stamps, unclassified sales, dze
$20,584,310,420.00
$1.613,130.26
2,726,300.00
4,351,850.00
19,150.00
1,012,500.00
10,970,000.00
22,823,100.00
14,888,000.00
648,250.00
59,052,280.26
$346,681,016.00
156,039,088.03
$190,641,927.97
95,341,522.00
2,040,297.74
3,342,761.71
291,366,509.42
111,697,287- 89,200,873 1,250,203,198 1,334,563,077
Total general fund expends__198,992,019 354,065,139 2,560,903.246 3,070,184,989
3,620,702
49,579,691
45,395,585
Total special fund expends__ 1,263,977
Excess of receipts
Excess of expenditures
431% Fourth Liberty Loan of 1933-38
640,685,000.00
Summary of General and
Special Funds.
Total general fund receipts__ 108,547,297 87,637,048 1,198,242,715 1,316,423,614
1,563,825
51,960,483
18,139,463
Total special fund receipts__ 3,149,990
Total
$806,017,570.00
First Liberty Loan of 1932-47334% bonds
$1.392,227,350.00
4% bonds (converted)
5,002,450.00
43-4;% bonds (converted)
535,982,600.00
5,222,839,100.00
1,194,170
17,890,388
15,190,749
30,311,169
108,547,297 87,637,048 1,198,242,715 1,316,423,614
Ezpenditures—
General
169.331,421
Public debt—
Interest
15,158,215
Sinking fund
Refunds of receipts—
Customs
1,217,781
Internal revenue
1,166,923
Postal deficiency
10,165,776
Panama Canal
963,471
Reconstruction Finance Corporation
Subscription to stock of Federal Land banks
Agricultural marketing fund
a1,634,892
(net)
Distribution of wheat and cot2,628,324
ton for relief
Adjusted service ctf. fund
.
Civil service retirement Vd__
Foreign service retirement f'd
Dist. of Col. (see Note l)_..
Total
$599,724,050.00
48,954,180.00
25,947.400.00
49,800,000.00
28,894,500.00
52,697,440.00
8,201,307,650.00
24,475,319
64,333,758
Total
88,809,077 57,872,334
Customs
16,442,256 23,191,334
Miscellaneous receipts—
Proceeds of Govt.
-owned
securities—
Principal—torn oblige's_
Interest—forts obliga'ns
172
Railroad securities
3,404
264,264
All others
2,647.454
Panama Canal tolls, dro
1,494,200
1,466,775
Other miscellaneous
1,537,328
2,455,747
Total
March 11 1933
Bonds
2% Consols of 1930
2% Panama Canal Loan of 1916-36
2% Panama Canal Loan of 1918-38
3% Panama Canal Loan of 1961
3% Conversion bonds of 1946-47
234% Postal Savings bonds(5th to 44th Series)
200,255,996 357,685,841 2,610,482.937 3,115,580,574
88,558,709 268,484.968 1,360,279,739 1,781,017.497
Trust Funds.
Receipts—
1,500,334
District of Columbia
Govt. life insurance fund_ _ _ 5,100,829
3,013,488
Other (See Note 2)
1,631,769
5,326,950
980.613
19.363,885
49,458,087
32,278,425
21,387,661
49,609,053
5,190,162
9,614,651
7,939,332
101,100,397
76,186,886
3,316,711
3,637,679
19,409,356
1,722,126
5,349,897
2,590,725
14,856,043
33,096,123
35.502,753
14,446,440
37,254,886
a3,347,306
12,835,039
13,300,427
102,864,275
70,934,759
520,934,729,209.68
COMPARATIVE PUBLIC DEBT STATEMENT.
[On the basis of daily Treasury statements.]
Aug. 31 1919
Mar. 31 1917
When War Debt
Feb. 29 1932
Pre-lVar Debt.
Was at Its Peak.
A Year Ago.
Gross debt
61,282.014,346.28 $26,596,701,648.01 $18,125,633,115.14
Net bal. In gen. fund_
74,216,460.05
375,859,436.65
1,118,109,534.76
22,580,739
1,316,165
4,837,574
3,364,589
Total gross debt
Total
Expenditures—
Dist. of Col.(see Note 1)__
Govt. life insurance fund—
Policy losses, do
Investments
Other (See Note 2)
Total
Gross debt less net balance in gen. fund._ _$20,474,224,331.14 $20,713,248,833.68
5,252,127
Excess of receipts or credits—
1,763,878
3,220,388
5,361,095
FaCOSS of expenditures
Receipts and expenditures for June reaching the Treasury in July are included,
a Excess of credits (deduct).
Note 1.—Expenditures for the District of Columbia representing the share of the
United States are charged against the amount to be advanced from the general fund
until the authorized amount is expended. After that they are charged against the
revenues of the District under trust funds. For total expenditures the items for
District of Columbia under general fund and under trust funds should be added.
1 Note 2.—Since July 1 1932 deductions from salaries crediticd to the Civil Service,
,
Foreign Service, and Canal Zone retirement funds and the earnings from investments of such funds and of the adjusted service certificate fund have been classified
as receipts, whereas prior to that date such items were used to offset expenditures
for the respective funds.
Preliminary Debt Statement of the United States
Feb. 28 1933.
The preliminary statement of the public debt of the United
States Feb. 28 1933, as made upon the basis of the daily
Treasury statement, is as follows:
Gross debt less net baialance in gen. fund. $1,207,827,886.23 $25,478,592,113.25 $17,749,773,678.49
Jan, 31 1933
Last Mont/s.
Feb. 28 1033.
Cross debt
520,801,707,134.01 $20,934,729,209.68
Net balance in general fund
327,482,802.87
221,480,376.00
ointintrcialand Binscellantonsgnus
BREADSTUFFS
(Concluded from page 1744.)
The United States visible supply decreased last week
770,000 bushels making the total 143,676,000 bushels against
207,477,000 a year ago. It was said that curb`htrading in
May wheat was done at Kansas City at about 46c. or 33 c.
%
above, but Friday's official closing regardless of reports of
rain and snow in parts of the winter wheat belt. Small
sales were made at Minneapolis based on flour bids but for
the most part American markets were closed tight.
On the 7th prices at Winnipeg declined 2c. on a lessened
demand and a refusal of Liverpool and Buenos Aires to follow
the recent advance in Winnipeg. Later came a rally which
left Winnipeg / to lc. net lower for the day. On heavy
73
taking of profits before the close. Liverpool declined 3. to
d• Mr. Morgenthau's announcement that the Stabilization Corporation still holds 30,390,000 bushels of wheat
futures largely for May was a surprise and a disappointment
to the trade. Many had supposed that the government
was virtually out of its holdings of wheat futures. It wa,
Volume 136
Financial Chronicle
announced that trading in cash grain in Chicago and Kansas
City would cease at 9 a.m. on the 8th.
Chicago wired on Mar.7 that efforts of mills to hedge sales
of flour by purchasing May wheat futures from the Grain
Stabilization Corporation were prevented by a resolution
adopted yesterday prohibiting the stabilizers from trading
In cash grain when futures were the basis for the business or
there was an exchange of futures. Therefore mills have been
unable to remove hedges against cash grain. Mr. Morgenthau is expected to discuss the matter with officials of the
Chicago board of trade in Washington.
' While in Western Europe the acreage of wheat has increased, there is a large decrease in some other parts of the
world, i.e., 13.2% in Russia and 14.7 in India. Mr. Stone
formerly of the Farm Board and just retired is quoted as
saying that the Government has finally sold out most of
its "stabilization" wheat. Mr. Morgenthau also comments: "The new administration is going to get the government out of wheat and cotton as quickly as possible.
All
of which is regarded as eventually tending to help the price.
In Winnipeg on the 8th prices declined % to lc. A fair
3
export trade by way of Vancouver was said to have been
done and hedges covered. Winnipeg had only a fair sized
speculation. Broomhall estimated the purchases of importing countries from exporting nations at 664,000,000 bushels
in contrast with his previous estimate of 706,000,000 bushels.
This reduction is expected to be largely at the expense of
Canada. There was no open trading in cash wheat at
Chicago. The belief was that the grain Exchanges will not
reopen before next Monday. The bank difficulties continued
to be the insurmountable obstacle to normal business.
On the 9th prices advanced 1%c. in Winnipeg mainly on
talk of inflation and good buying in Winnipeg by Chicago.
Later came a reaction which left the net advance 1 to 1Mo.
It is said that millers have been trying to buy large quantities
of May wheat from the Grain Stabilization Corporation,
even being ready to take 10,000,000 bushels, but their bids
were rejected. Trading otherwise was much more active.
Liverpool closed unchanged to %d. up. It was dry in the
West and Southwest where rain or snow is needed. The
primary receipts of wheat were only 165,000 bushels against
740,000 a week ago and 421,000 a year ago. Chicago wired
on March 9th that messages were received there which said
the upturn in the Winnipeg wheat market was based on the
belief that prices in the United States would show buoyancy
when the grain exchanges were reopened. The new United
States currency plan was one of the reasons assigned for the
bulge. Another incentive mentioned was the likelihood that
Russia would soon be in the market for wheat on account
of unusual spring seeding requirements. Besides, drought
continued in sections of the domestic winter wheat territory.
Cable messages from European grain importers said that
without free, open American grain markets functioning normally, any important business in grain was impossible.
Winnipeg wired on March 9th that unsettlement of the money
markets continues to restrict the export grain trade here and
for the fourth sonsecutive day, no foreign sales of Canadian
wheat were made. A membership in the Chicago Board of
Trade sold at $6,000 an advance of $750 since Monday.
To-day Winnipeg closed /t to lc. higher with May 5214o.;
3
July, 535% to 53Mc.; October, 55 to 553/80. Kansas City
wheat was 45% to 5c. a bushel higher than the close of Friday
with 48M to 49o. quoted for 11.55 to 11.80 protein content.
Outstanding factors were the bullish Modern Miller report,
generally higher cash wheat prices and bullish private crop
reports from Kansas.
INDIAN CORN has had a quiet week. The bank holiday
did away with all trading in futures and with the cash market
on the exchanges after the 8th. While there has been more
or less activity in Winnipeg corn in that market was overshadowed by the activity of and interest in wheat. On the
4th although the American markets were closed for the duration of the banking holiday as far as business in futures was
concerned trading continued as usual in cash grain at Chicago
subject to some change in the usual procedure. After obtaining the necessary consent of shippers to sell their grain the
receivers disposed of it with the agreement to make payment
when the banking situation permitted. There were sales of
No. 3 yellow corn at 223 to 230. which was equal to the
4
best prices of the previous day. Primary receipts were
505,000 bushels compared with 1,101,000 a week ago and
540,000 a year ago. Shipments were 147,000 as compared
to 256,000 last week and 144,000 last year. In spite of the
activity of wheat at Winnipeg corn continued dull in that
market.
Cash corn on the 6th sold freely at an advance of
8
to 40. closing Yi to Mo. higher on a sharp demand from
'
feed interests and stockyards. On the 6th the primary
receipts were 515,000 bushels, against 1,075,000 a week
before and 395,000 last year. The United States visible
supply increased last week 1,855,000 bushels, making the
total now 34,651,000 bushels, against 19,706,000 a year ago.
On the 7th Chicago reported a large demand for cash corn
and prices advanced Mc. Corn was not openly traded in
at Chicago on the 8th so far as cash corn was concerned,
and naturally futures were out of the question. It was
said that a leading local industry was taking all the cash
corn offered in Chicago. In Peoria cash corn was unchanged
to %a. higher, with industrial interests buying. The
receipts at primary markets on the 9th were down to 126,000
1695
bushels, against 515,000 a week before and 243,000 last
year. Cash corn was inclined to be heavy.
OATS.
-The closing of the futures markets here and of
the spot markets for a good part of the week practically
extinguished all interest in oats as far as this country 113
concerned, although there has been at times a fairly active
market in Winnipeg at somewhat higher prices. Trading
in futures was discontinued because of the banking holiday,
but on the 4th inst. in the cash market No.2 white oats solcl
at 16-163%c., which was in line with Friday's close. Prices
in Winnipeg were fractionally higher, but trading did not
begin to follow wheat in its activity. In Winnipeg on the
6th prices advanced Vi to 1Mc. in sympathy with the rise
in other grain. On the 7th cash prices in Chicago advanced
1 to 1Mo., with a steady demand. In Winnipeg on the
8th prices closed Mc. lower after an earlier decline of 34 to
Me. A fair business was done. On the 9th oats were
generally• % to % of a point higher in Winnipeg, with
moderate transactions. To-day prices at Winmpeg were
3
M to /0. higher.
RYE has been practically without interest here and only
fairly active in Winnipeg where it has advanced in company
with wheat. On the 4th the closing of the futures markets in
the United States eliminated all trading in rye futures and
cash business was largely nominal. There was some activity in Winnipeg at advances averaging Mo. following the
action of wheat in that market. In Winnipeg on the 6th
prices advanced % to lc. under the stimulus of the sharp
upturn in wheat, covering of shorts and other buying.
On the 8th there was little activity in rye at Winnipeg and
the active months followed wheat's action partially, closing
%c. down. On the 9th prices advanced % to a cent in
Winnipeg. There was practically no interest here. To-day
Winnipeg ended % to 1%c. higher.
3
BARLEY trading here was suspended for the duration of
the banking holidays. To-day prices at Winnipeg advanced
3i to %o.
Breadstuffs figures brought from page 1744.
-All
the statement below, regarding the movement of grain
receipts, exports, visible supply, 8re., are prepared by us
from figures collected by the New York Produce Exchange.
First we give the receipts at Western lake and river ports
for the week ending last Saturday and since Aug. 1 for each
of the last three years:
Flour.
Wheat.
Oats.
Corn.
Bye.
Barley.
bals.1961ba.bush.60 lbs.bush.56 lbs. bush.32 lbs bush.561b5.. 6.481k.
Chicago
271,
175,000
16.iI
110.000 1,602,000
108.000
Minneapolisi43.000157,000
93,000
i,isi.000
178,000
Duluth
35,000
14,000
10.000
120,000
369,000
Milwaukee_ _ 33,000
14,000
2.000
219,000
9,000
81,000
Toledo
1,000
119.
87,000
178,000
Detroit
2,000
34.000
14,000
5.000
20,000
Indianapolis408.000
396.000
68,000
St. Louis_ _ _
192.000
48,000
139,000
315.000
274,000
Peoria
84,
56,000
280,000
14,000
39,000
Kansas City-11,000 1,004,000
197,000
58.000
Omaha
59,000
232,000
i48,000
St. Joseph _
33.000
108,000
86.000
Wichita
9,000
190,000
Sioux City_
5,000
20.000
5,000
10,000
Total wk. '33
Same wk. '3
Same wk. '31
403,000
397.000
431,000
3,819,000
4.872,000
9,876,000
3.713,000
4.050.000
6,865,000
1,439,000
1,564.000
1,647,000
158.000
151.000
174,000
486,000
55.5,000
640,000
Since Aug.11932
11,646,000232,424,000,126,164.000 59,810.000 7.23i,00027.294,000
1931
13,294,000237,141,0001 86,279,000 48,584.000 4,733,00023.934,000
1930
13,537,000 313.978,000.136,701,000 80,236.000 16.663.000 38.527.000
Total receipts of flour and grain at the seaboard ports for
the week ending Saturday, Mar. 4 1933 follows:
Receipts at-
Flour. 1
1
Wheat. I
Corn.
Oats.
Ible•
Barley.
Ms.1961bs 1bush.60 lbs.lbush.56 lbs.bash.32lbs.bush.56lbs. bush.484088
.
New York ___
10,000
2.000
2,000
106,000'
Portland, Me_
272.0001
Philadelphia__
14.000
23,000
•
Baltimore_ .._
.
21,000
2.000
12,000
4,000
NewportNews
5.000
2,000
Norfolk
4,000
New Orleans•
26,000
51,000
48,000
12.000
Galveston_
40,000
St. John
15,000
137,000
Boston
4.000
19.000
Halifax
14,111
56.000
4.000
W.St. John__
230,000
36.11$
Total wk. '33 278,000
747,000
Since Jan.V33 2,428,000 6.853,000
80.000
757,000
60.000
722,000
6.000
106.000
23,000
Week 1932_ -167,000 157,000
331,000 3,025,000
82,000
Since Jan.1'32 3,056, 1 oi 13,957,000
872.000 1.140,000 975,000 876.000
* Receipts do not include grain passing through New Orleans for foreign porta
on through bills of lading.
The exports from the several seaboard ports for the week
ending Saturday, Mar. 4 1933, are shown in the annexed
statement:
Exportsfrom
New York
Portland, Me
Boston
Baltimore
Norfolk
Newport News
New Orleans
Galveston
St. John
Halifax
W.St. John
Corn.
Flout.
Oats
.
Jigs.
Bane.
Bushels. Bushels. Barrels. Bushels. Bushels. Bushels.
1.024,000
8,380
1.000
272,000
80,000
1,000
4.000
2,000
5,000
2,000
147,000
1,000
8.000
137,000
15.000
14,000
56.000
4,000
230.000
36,000
1,799,000
Total week 1933_
Same week 1932_ _ _ _ 2.137,000
157,000
27,000
83,680
71.410
5,000
66,000
5.000
The destinat on of these exports for the week and since
July 1 1932 is as below:
Financial Chronicle
.1696
,
Flour.
Exports for Week
• and Since
Week
Since
•
July Ito-.Mar. 4 July1
1932.
1933.
Wheat.
Week
Mar. 4
1933.
Since
July 1
1932.
Corn.
Week.
Mar. 4
1933.
Since
July 1
1932.
Bushels. Bushels.
Bushels.
Bushels.
Barrels, Barrels.
959,000
104,000 43,480,000 152,000
United Kingdom_ 43,360 1,424,523
4,000 3,454,000
Continent
11,020
574,759 1,692,000 65.598.000
9,000
9,442,000
So. & Cent. Amer_
_- _
96,000
42,000
1,000
117,000
3,000
West Indies
30,000
386,000
____,._
5,000
2,000
But. No. Am. Col. 1,000
40,800
1,000
506,000
1,000
133,876
Other countries__ _
Total 1933
Total 1932
86,380 2,656,158 1,799,000 119,145,000
71.410 4.197.335 2,137,000 110,924,000
157,000 4,470,000
197,000
27,000
The visible supply of grain, comprising the stocks m
granary at principal points of accumulation at lake and
seaboard ports Saturday, Mar. 4, was as follows:
GRAIN STOCKS.
Barley,
Corn,
Oats,
Rye,
Wheat,
bush.
bush.
bush,
bush,
bush,
United States4,000
7,000
Boston
1,000
167,000
347,000
19,000
York
New
" afloat
159,000
1,000
632.000
29,000
32,000
5,000
Philadelphia
4,000
455.000
5,000
Baltimore
50,000
11,000
4,000
New Orleans
73,000
393,000
172,000
16,000
Galveston
689,000
87,000
Fort Worth
3,000
4,106,000
51,000
739,000
Wichita --------2,059,000
9,000
Hutchinson
5,531,000
St. Joseph
4,421,000 1,274,000
267.000
42,000
89,000
Kansas City
869,000
311,000
38,581,000
43,000
Omaha
59,000
14,692,000 2,649,000 1,625,000
19,000
142,000
6,000
Sioux City
1,512,000
227,000
10,000
5,000
St. Louis
747,000
4,118,000 2,489,000
541,000
598,000 1,940,000
Indianapolis
352,000
11,000
10,000
Peoria
458,000
9,333,000 12,877,000 3,803,000 1,097,000
Chicago
571,000
498,000
231.000
" afloat
672,000
711,000
42,000
5,666,000 1,715,000
Milwaukee
187,000
70,000
353,000
" afloat
988,000 10,250,000 3,612,000 5,290,000
24,774,000
Minneapolis
971,000
15,300,000
428,000 2,864,000 1,536,000
Duluth
158,000
12,000
26,000
28,000
34,000
Detroit
5,575,000 6,741,000 1,549,000
620,000
722,000
Buffalo_
479,000
4,920,000
175,000
" afloat
March 11 1933
Mar. 2
-The Greensburg National Bank, Greensburg, Indiana
Effective Feb. 28 1933. Liq. Agent, J. B. Kitchin,
Greensburg, Ind. Succeeded by the Greensburg
Bank, Greensburg, Ind.
Mar. 2
-The Kerens National Bank, Kerens, Texas
• Effective Feb. 20 1933. Liq. Agents, E. E. Nettles
and C. I. Coates, both of Kerens, Texas. Succeeded
by First National Bank of Kerens, Texas.
75,000
80,000
Auction Sales.
-Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York on Wednesday of this week:
By Adrian H. Muller & Son, New York:
Shares.
Stocks.
333 Seto Manufacturing Co., Inc. (N. Y.), par $1
2 El Canada Gold Mines, Inc., common
$ per Share:
$26 lot
400
DIVIDENDS.
Dividends are gr'ouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Railroads (Steam).
Beech Creek
Bessemer & Lake Erie, corn.
Old Colony (guar.)
St. Joseph South Bend dr Sou.(s.-a.)
Prefeered (semi ann.)
Per
When
Share. Payable,
50c
%
$1%
750
$2.)i
Books Closed
Days Inclusive.
Apr. 1 Holders of rec. Mar. 15
Apr. 1 Holders of rec. Mar. 15
Apr, 1 Holders of rec. Mai. 18
Mar. 15 Holders of rec. Mar. 10
Mar, 15 Holders of rec. Mar. 10
Public Utilities.
25e May 1 Holders of rec. Apr. 7
Amer. Vat. Works & El. Co., Inc.(qu.).
204 May 1 Holders of rec. Apr. 7
Voting trust certificates (guar.)
Assoc. Gas & Elec., $7 pref. & orig. pref.-No di v. actlo n taken.
aft Apr. 15 Holders of rec. Mar.31
British Columbia Pow,Corp., Ltd
Calgary Power Co., Ltd., corn. (quar.). 31% Apr. 1 Holders of rec. Mar. 15
Central Illinois Light Co.6% pref.(qu.). lm% Apr 1 Holders of rec. Mar. 15
% Apr. 1 Herders of tee. Ma:. 15
7% preferred (guar.)
$1.13 Apr. 1 Holders of rec. Mar. 20
Cincinnati& Sub. Bt.! Tel. (quar.)
Clinton Water Works 7% pref. (quar.) 131% Apr. 15 Holders of me. Apr. 1
Commonwealth UM.Corp. pt. C(qu.).. $131 June 1 Holders of roe. May 15
Commonwealth Water & Lt. 7% pf.(qu.) 131% Apr. 1 Holders of rec. Mar. 20
' Total Mar. 4 1933-_143,676,000 34,651,000 24,168,000 7,749,000 8,601,000
$6 preferred (quar.)
El% Apr. 1 Holders of rec. Mar. 20
. • Total Feb. 25 1933___144,448,000 32,796,000 24.227,000 7,783,000 8,486,000 • Consumers Gas Co. of
Toronto (quar.).. $2.S5 Apr. 1 Holders of rec. Mar. 16
Total Mar. 5 1932_207,477,000 19,706.000 16,867,000 9,216,000 3,429,000
Cuban Telep. Co.7% pref.-Div. omitte d.
Note.
-Bonded grain not included above: Wheat, New York, 351,000 bushels:
Consumers Power Co.35 pref.(quar.)$11,1 July 1 Holders of rec. June 15
• Philadelphia. 42 000; Boston.905,000; Buffalo, 2,103,000; Buffalo afloat. 3,656,000;
6% preferred (quer.)
11.6% July 1 Holders of rec. June 15
Duluth, 2,000; Erie, 733,000; total, 7,792,000 bushels, against 13,403,000 bushels
6.6% preferred (quar.)
1.65% July 1 Holders of rec. June 15
in 1932.
7% preferred (quar.)
% July 1 Holders of rec. June 15
Wheat,
Corn,
Oats,
6% preferred (monthly)
Rye,
Barley,
500 May 1 ',folders of rec. Apr. 15
bush,
Canadianbush.
bush,
bush.
bush.
6% preferred (monthly)
500 June 1 Holders of rec. May If
1,596,000
6% preferred (monthly)
'Montreal
•
397,000
824,000
419,000
50c July 1 Holders of rec. June 15
Ft. William & Pt. Arthur_63,040,000
1.103,000 1,789,000 1,341,000
6.6% preferred (monthly)
550 May 1 Holders of rec. Apr. 15
Other Canadian
33,590,000
2,491,000
811,000 1,079,000
6.6% preferred (monthly)
55c June 1 Holders of rec. May 15
6.6% preferred (monthly)
55C July 1 Holders of rec. June 15
Total Mar. 4 1933_ __ _ 98,226,000
3,991,000 3,424,000 2,839,000
Dayton Power & Light Co.6% p1. (El u.)_
50c Apr. 1 Holders of rec. Mar. 20
Total Feb. 25 1933- _ _ _97,899,000
3,986,000 3,423,000 2,796,000
rDetrolt Edison Co.
-Div.action deterse d.
Total Mar. 5 1932... _ _62,144,000
5,353,000 8,768,000 4,550,000
Federal Light & Traction, com. div. acti on not taken.
Common stock dividend action not ta ken.
Summary
Great Lakes Pow, Ce., Ltd., $7 pf. (qu.) $IN Mar. 15 Holders of rec. Feb. 28
American
143,676,000 34,651,000 24,168,000 7,749,000 8,601,000
Hackensack Water Co.. 7% pf. A (qu.). 43f4e Mar. 31 Holders of rec. Mar. 15
'Canadian
98,226,000
3,991,000 3,424,000 2.839,000
Indiana dr Michigan Elec., 7% pt. (qu.) 131% Apr. 1 Holders of rec. Mar. 7
6% preferred (guar.)
14% Apr, 1 Holders of rec. Mar. 7
. Total Mar, 4 1933_ __241,902,000 34,651,000 28,159,000 11,173,000 11,440,000
Indianapolis Power & Light
Total Feb. 25 1933-242,345,000 32,796,000 28,213,000 11,206,000 11,282,000
% preferred (quar.)
1%% Apr. 1 Holders of rec. Mar. 6
Total Mar. 5 1932_ -273,566,000 20,044,000 22,455,000 17,985,000 7,994,000
International Hydro Elec. System
Preferred (guar-)
The world's shipment of wheat and corn, as furnished by
87Sic Apr. 15 Holders of rec. Mar,28
Joplin
Tsi%
Holders of rec. Apr. 1
Broomhall to the New York Produce Exchange,for the week KansasWater Works,6% pref. (guar.).- 1U% Apr. 15 Holders of rec. Mar. 15
Gas& Elec. Co.,7% pref.(quar.)
Apr. 1
$6 preferred (quar.)
ending Friday, March 3, and since July 2 1932 and July 1
8531 Apr.
Holders of rec. Mar. 15
Marconi Intern'i Marine Communication
1931, are showing in the following:
Co., Final
214%
Memphis Pow. dr Light Co.,$7 pf (qu.). $1.4 Apr. 1 Holders of rec. Mar.11
$6 preferred (quar.)
81S6 Apr. 1 Holders of rec. Mar. 11
Wheat.
Coin.
• Metropolitan Edison Co.. $6 pref. (qu.) 61
Apr. 1 Holders of reo. Feb. 28
Mississippi River Pow. Co.. pfer. (qu.) 51.1i Apr. 1 Holders of rec. Mar. 15
Exports.
Since
Week
Week I
Since
Since
Since
Mississippi Valley Public Service Co.
-March 3
July 1
March 3
July 2
July 2
July 1
6% preferred B (guar.)
% Apr. 1 Holders of rec. Mar. 22
1931.
1933.
1931.
1933.
1932.
1932.
Monongahela Valley Water Co., p1.(qu.) $1% Apr. 15 Holders of rec. Apr. 1
North Shore Gas Co., 7% pref. (quer.). 13j% Apr. 1 Holders of rec. Mar. 10
Bushels. I Bushels.
Bushels.
Bushels. I Bushels.
Bushels.
165,0001 5,121,000 1,768.000 .Otter Tall Power Co.(Del.)$6 pref.
North Amer_ 5.056,000221,572,000222,963.000
(WO $1Si Apr. 1
853i preferred (quar.)
Apr. 1
Black Sea
18.856,000105,736,000, 1,224,0001 46,889,000 19,853,000
Pacific Telep.& Teleg. Co., corn.(guar.) $11i Mar. 31 Holders of rec. Mar. 20
3,366,000 56.039,000 76,713,0001 2,099,000451,058,000282,590,000
Argentina_
Preferred (quar.)
$1 Si
Apr. 15 Holders of rec. Mar. 31
Australia
6,628,000101,469,000 99,764,000'
Pacific Lighting Corp., pref. (quasi _
$13i
Apr. 15 Holders of rec. Mar. 31
India '
600,000,
Peninsular Telep., torn, (guar.)
256
Apr, 1 Holders of rec. Mar. 15
0th. countr's
160.000 21,165,000 24.406.000
383,000 24,218,000 15,708.000
Penn Cent. Lt. & Pr.Co., $5 pref. (qu.)_ 81
Apr. 1 Holders of rec. Mar. 10
$2.80 preferred (quar.)
70c
Apr, 1 Holders of rec. Mar. 10
Total _ _
15,210.000 419,101,000530.182,000 3.871,000227,286,000319,919,000
Pennsylvania Pow.& Lt. Co., $7p1.(qu) $1% Apr. 1 Holders of rec. Mar. 15
$6 preferred (quar.)
31Si
Apr. 1 Holders of rec. Mar. 15
$5 preferred (quar.)
8151
Apr. 1 Holders of rec. Mar. 15
• National Banks.
-The following information regarding Philadelphia Traction Co.(5.-a.)
Y$1.90 Apr. 1 Holders of rec. Mar. 10
:National banks is from the office of the Comptroller of the Public Serv. Co.of Colo., 7% p1.(mthly)58 1-3c Apr. 1 Holders of rec. Mar. 15
6% preferred (spar.)
50c Apr. 1 Holders of rec. Mar. 15
- Currency, Treasury Department:
5% preferred (quar.)
41 2-3o Apr. 1 Holders of rec. Mar. 15
Public Service Co. of N. H., $6 pt.(qu). $I ti Mar. 15 Holders of rec. Feb. 28
C/IARTERS ISSUE D.
$5 preferred (spar.)
Mar, 15 Holders of rec. Feb. 28
Capital.
Queens Bore. Gas & Elec.,6% pref.(qu.) 13-1% Apr. 1 Holders of rec. Mar. 15
Feb. 20
-The Northwestern National Bank of Milwaukee, Win.. $200,000
Richmond Water Works,6% pref. (qu.)_
% Apr, 1 Holders of rec. Mar. 20
Effective Feb. 14 1933. Liq. Agent, L. H. Noll, care
Rochester Telep. 6I1% pref. (quar.)
14% Apr, 1 Holders of rec. Mar. 20
of the liquidating bank. Absorbed by First Wisconsin
San Joaquin L. dr P.Corp.,7% A pf.(qu) 131% Mar, 15 Holders of rec. Feb. 28
NationaI Bank of Milwaukee, Charter No. 64.
7% preferred (quar.)
131% Mar, 15 Holders of roe. Feb. 28
Feb. 21
-The National Exchange Bank of Weston, W. Va__
150,000
Scranton Elec. Co., $6 pref. (quar.)
81% Apr. 1 Holders of rec. Mar. 7
Effective' Sept. 15 1932. Liq. Agent, The Weston
Sou. Ind. Gas & El. Co., 7% pref.(qu). 131% Apr, 1 Holders of rec. Mar. 18
National Bank, Weston, W. Va. Succeeded by the
6% preferred (quar.)
% Apr, 1 Holders of rec. Mar. 18
Weston.'National Bank. Weston, W. Va., Charter
6.6% preferred (quar.)
1.65% Apr. 1 Holders of rec. Mar. 18
_
' No. 13634.
'
South Pittsburgh Water 7% Pref. (qr.). IN% Apr. 15 Holders of rec. Apr. 1
-The First National Bank of Longville. La
Neb. 237
25,000
% Apr, 16 Holders of rec. Apr. 1
6% preferred (quar,)
*Effective Jan. 10 1933. Liq. Agents, S. Arthur Knapp
Southwestern Bell Teiep. Co. pf. (qr.). 81% Apr, 1 Holders of rec. Mar. 20
and. It. L., Kale, care. of the liquidating bank. . AbSouthwestern Gas& El. Co., 7% pf.(qu)
% Apr. 1 Holders of rec. Mar. 15
sorbed by • Calcasieu National Bank in Lake Charles,
Southwestern Lt. es Pw. Co., 6$ pf.(qu.)
Apr. 1 Holders of rec. Mar. 15
Charter NO. 13573.
15c Mar, 1 Holders of rec. Feb. 15
Tri-State Tel. & Tel. Co.,6% pref.(qu.)
-The Citizens National Bank of Harlan. Ky
Feb. 25
100,000
% Apr, 15 Holders of rec. Apr. 1
Wichita Water Co., 7% pref. (quar.)
Effective Jan. 11 1933. Lici..Agent, The Harlan National .Bank, Ikarlan, Ky. Absorbed by The Harlan
Fire Insurance Companies.
Natiodal Bank,. Harlan, Hy., Charter No. 12295.
Hanover Fire Ins. Co.(quar.)
40c Apr. 1 Holders of rec. Mar. 20
Feb. 28
-The First National Bank of Painted Post, Painted Post,
'
Phoenix Fire Ins. (quar.)
50c Apr. 1 Holders of rec. Mar. 15
New York
$50,000
President, Luther A. Thomas; Cashier, Robert W.
Banks and Trust Companies.
Brown. Succeeds the Painted Post National Bank,
Bankers Trust Co. (quar.)
74% Apr, 1 Holders of rec. Mar. 13
Painted Post, :New York. Continental Bank dr Trust Co. of New
VOLUNTARY LIQUIDATIONS.
30e Apr. 1 Holders of rec. Mar. 21
York (quar.)
National City Bank (N. Y.) (quar.)___
25c Apr. 1 Holders of rec. Mar. 11
Feb. 27
-The Citizens National Bank of Winchester, Indiana__ _ _
50,000
New Rochelle Trust Co.(N.Y.)(qu.)
31
Apr, 1 Holders of rec. Mar. 15
Effective Feb. 15 1933. Liq. Agent, Benjamin E.
Hinshaw, care of the liquidating bank. Absorbed by
Miscellaneous.
the Peoples Loan Sr Trust Co. of Winchester, Ind.
Affiliated Products, Inc.(monthly)
10e Apr, 1 Holders of rec. Mar. 17
-The First National Bank of Thorndale, Texas
Feb. 27
50,000
Air Reduction Co.(quar.)
75e Apr, 15 Holders of rec. Mar. 31
Effective Feb. 23 1933. Liq. Agent, W. R. Rivers,
American Express Co. (quar.)
81% Apr, 1 Holders of rec. Mar. 22
care of the liquidating bank. Absorbed by Thorndale
American Home Products Corp.(quar,).
350 Apr. 1 Holders of rec. Mar. 14
State Bank, 'Thorndale, Texas.
American Maize-Products Co.corn.(Qr.) 25e
Mar,31 Holders of rec. Mar. 22
Feb127-Ligonier National Bank, Ligonier, Pennsylvania
125.000
Preferred (quar.)
8131 Mar. 31 Holders of roe. Mar. 22
Effective Feb. 24 1933. Liq. Agent, C. G. Gonder,
•,
American Rolling Mill Co.
Ligonier, Pa. Succeeded by the First National Bank in
6% and 6% class B pref.-Divs. omitt ed.
Ligonier.
Financial Chronicle
Volume 136
Name of Company.
Per
When
Share. Payable.
Books Closed
Days Inclusive.
Miscellaneous (Continued).
American Optic Co. 7% 1st pref. Wei- l3j% Apr.. 1 Holders of rec. Mar. 18
American Safety Razor Corp.(guar.)
75c Mar. 31 Holders of roe. Mar. 7
American Wringer Co. (guar.)
37310 Apr. 1 Holders of rec. Mar. 15
Apponaug Co. common (guar.)
50c Apr. 1 Holders of rec. Mar. 15
Armour & Co. of Del. pref. (guar.)
$14, Apr. 1 Holders of roe. Mal. 10
Associated Breweries (Can.) 7% pf.(qu.) 141% Ape. 1 Holders of rec. Mar. 15
Associated Oil—Common div. omitted.
_
Auburn Automobile Co.(guar.)
50e Apr. 1 Holders of rec. Mar.21
Stock dividend omitted.
Balaban & Katz Corp.—Pref. div,omitte d.
Bankers Investment Trust of Am.(s.
-a.)
150 June 30 Holders of roe. June 15
Blltmore Hats, Ltd.,7% pref.(quar.)--- 1%% Mar. 15 Holders of roe. Feb. 15
Borg-Warner Corp., 7% pref.(guar.).— 1%% Apr. 1 Holders of rec. Mar. 15
Brit.-Amer. Tob. Co.,Ltd-ord.(interim)
106 Mar. 31
rBucyrus-Monighan Co. Class A—Div.a ction de erred.
Building Prod.. Ltd., com.A & B (qu.).25e Apr. 1 Holders of rec. Mar. 16
Calwa Co. (quar.)
$1
Mar,20 Holders of rec. Feb. 28
Canada Packers, Ltd., 7% pref. (guar.) 131% Apr. 1 Holders of rec. Mar. 15
Canadian Celanese, Ltd., 7% pref. (qu.) I/4% Mar.31 Holders of rec. Mar. 18
Canadian General Elect., corn. (quar.)_ 181
Apr. 1 Holders of rec. Mar. 15
Preferred (guar.)
187310 Apr. 1 Holders of rec. Mar. 15
Canadian Westinghouse Co., Ltd.(qu.)_
1500 Apr. 1 Holders of rec. Mar. 20
Cannon Mills Co. (guar.)
25e Apr. 1 Holders of rec. Mar. 18
Celanese Corp. of Amer.. 7% pref. (qu.) 131% Apr. 1 Holders of rec. Mar. 18
Central Aguirre Assoc., common (guar.) 37310 Apr. 1 Holders of me. Mar. 20
Central Aguirre Assoc. (guar.)
37Sic Apr. 1 Holders of rec. Mar. 20
Chic. Dock & Canal Co.,7% pf. A (qr.) 131% Apr. 1 Holders of rec. Mar. 15
6% Preferred B (guar.)
134% Apr. 1 Holders of rec. Mar. 15
631% preferred C (guar.)
134% June 1 Holders of rec. May 15
Christiana Securities 7% Prof. (guari- 134% Apr. 1 Holders of rec. Mar. 20
cluett, Peabody & Co., Inc., pref.(gr.). 5114 Apr. 1 Holders of rec. Mar. 21
Coca-Cola Co. (guar.)
S1S1 Apr. 1 Holders of me. Mar. 11
Continental Baking Corp. pref. (guar.).
Apr. 1 Holders of rec. Mar. 20
Conn. Gas & Coke Securities cone.(qu.)20c Apr. 1 Holders of rec. Mar. 15_
$3 preferred (guar.)
75e Apr. 1 Holders of rec. Mar. 15
Continental Casualty & Amur. Co.(qu.)
50c Mar. 31 Holders of rec. Mar. 15
Coon (W. B.) Co. 7% pref. (quari131% May 1 Holders of rec. Apr. 12
Curtis Publishing Co.—Pref. div. omitte d.
Domestic Finance (guar.)
50c Feb. 1 Holders of rec. Jan. 25
Dominion Glass Co., Ltd., common (qu.) £8134 Apr. 1 Holders of roe. Mar. 15
Preferred (guar.)
1%% Apr. 1 Holders of rec. Mar. 15
Eastern Steamship Lines, Inc., pf.(qu.)_ 8734e Apr. 1 Holders of rec. Mar. 17
1st preferred (guar.)
$111 Air. 1 Holders of reo. Mar. 17
Filene's Bons Co., corn. (guar.)
20e Mar.31 Holders of ree. Mar.20a
Preferred (guar.)
$134 Mar. 31 Holders of rec. Mar. 20a
First National Stores, corn. (quar.)
62Mc Apr. 1 Holders of rec. Mar. 15a
131% Apr. 1 Holders of rec. Mar. 15a
7% first preferred (guar.)
Garner Royalties
12Sic Mar. 16 Holders of rec. Feb. 27
General American Investors Co., Inc.—
$6 preferred (guar.)
81 34 Apr. 1 Holders of rec. Mar.20
r General Printing Ink Corp.—Preferred dividen d action deferred.
Glidden Co., 7% preferred (guar.)
1,8% Apr. 1 Holders of rec. Mar. 18
Gold de Stock Telegraph Co.(guar.)_ _ _ _
$131 Apr. 1 Holders of rec. Mar.31
Goodyear Tire &Rub.of Can., pref.(qu) Si A Apr. 3 Holders of rec. Mar. 15
Granite City Steel Co. (guar.)
25c Mar. 31 Holders of rec. Mar. 15
Group No. 1 Oil Corp. (quar.)
$100 Mar. 31 Holders of rec. Mar. 10
Gurd (Chas.) & Co., Ltd.—Com. div. a etion de ferred.
• Preferred (guar.)
$1,‘ Apr. 1 Holders of rec. Mar. 15
Heath (D. C.) de Co- pref. (guar.)
$134 Mar. 31 Holders of rec. Mar. 29
Hollinger Consol. Gold Mines, Ltd.
(mo.)
I% Mar. 25 Holders of rec. Mar. 10
Homestake Mining Co.(monthly)
75c Mar. 25 Holders of rec. Mar. 20
Horn & Hardart Baking Co. (Plella.)
' Common (guar.)
$134 Apr. 1 Holders of rec. Mar. 21
Hygrade Sulvania, corn.(guar.)
50c Apr. I Holders of roe. Mar. 10a
Preferred (quar.)
$131 Apr. 1 Holders of rec. Mar. 10a
Indiana General Service Co.,6% pt.(qu) 134% Apr. 1 Holders of rec. Mar. 6
631% preferred (guar.)
1Si% Apr. 1 Holders of roe. Mar. 6
r Industrial Rayon Corp.—Dividend act ion defe rred.
International Life Ins.(St.L.)(liquid.). _
$134 Feb. 25
International Nickel Co. of Can.
7% preferred (quar.)
11)4% May 1 Holders of rec. Apr. 1
Irving 011 Co., Ltd.,6% pref.(guar.)_
75e Mar. 1 Holders of rec. Feb. 15
Keystone Custodian Fund, ser.0 (5.-a.) 2.19733c Mar. 15 Holders of me. Feb. 28
Kresge (S. S.) Co., preferred (guar.)
- $134 Apr. 1 Holders of rec. Mar. 20
Lambert Co., corn. (guar.)
$1
Apr. 1 Holders of rec. Mar. 17
Lazarus (F. & It.), corn. (guar.)
10c Mar.31 Holders of rec. Mar.20
M-A-C Plan (Harttord)—Preferred divid end omi tied.
Mack Trucks, Inc., corn. (guar.)
25e Mar. 31 Holders of rec. Mar. 17
Manischewitz, Prof. (quar.)
514 Apr. 1 Holders of rec. Mar. 20
Mayer (0.) 1st pref. (guar.)
$1% Mar. 1 Holders of rec. Feb. 24
2d preferred (guar.)
52
Mar. 1 Holders of rec. Feb. 24
McColl Frontons.° 011 Co., pref.(guar.)_
8131 Apr. 15 Holders of rec. Mar. 31
McKeesport Tin Plate Co. (guar.)
81
Apr. 3 Holders of rec. Mar. 15
Mead,Johnson de Co., corn. (quar.)_ 25c Apr. 1 Holders of roe. Mar. 15
Merchants & Miners Transp. Co.(guar.) 37 Me Mar. 31 Holders of rec. Mar. 15
Metal & Thermlt pref. (guar.)
$11‘ Apr. 1 Holders of roe. Mar. 20
Metropolitan Coal Co., pref.(guar.)_ _ $134 Mar. 31 Holders of rec. Mar. 24
Mitchell(J. S.)& Co., Ltd., pref.(guar.) $1% Apr. 1 Holders of rec. Mar. 17
National Battery Co., pref. (guar.)... _ 55c
Apr. 1 Holders of rec. Mar. 17
/National Candy—Corn, and pref. div. action deferred
National Gypsum Co., 7% pref. (guar.) 1Si% Apr. 1 Holders of rec. Mar. 18
National Dairy Prod.. pref. A & B (qu.) $154 Apr. 1 Holders of rec. Mar. 17
National Refining, prof. div. action defe rred.
National Standard Co.(Mich.) (quar.) 30e
Apr. 1 Holders of rec. Mar. 20
National Tea Co., common (guar.)..._ 15c
Apr. 1 Holders of rec. Mar. 14
North American Creameries Corp., Inc. class A Meriden d omitted.
North American Match Corp
81
Mar. 1 Holders of roe. Feb. 4
Ohio Finance Co., 8% pref. (quar.)
2% Apr. 1 Holders of rec. Mar. 10
Ontario Loan & Debenture Co.(guar.)._ $134 Apr. 1 Holders of rec. Mar. 15
Pacific Southwest Discount Corp—
A & B (quar.)
10c
Mar. 15 Holders of rec. Mar. 1
Paton Mfg. Co., Ltd., pref. (quar.)___ - $1% Mar. 15 Holders of rec. Feb. 28
Penman% Ltd., corn.((Mari
750
May 15 Holders of rec. May 5
Preferred (guar.)
$134 May 1 Holders of me. Apr. 21
People Gas Light de Coke
5114 Apr. 17 Holders of rec. Apr. 3
Philip Morris Consol., Inc., cl. A (guar.)
% Apr. 1 Holders of rec. Mar. 20
Class A (guar.)
h1St% Apr. 1 Holders of rec. Mar. 20
Pioneer Gold Mines of B. C. Ltd., corn
16e
Apr. 1 Holders of rec. Mar. 10
Premier Gold Mining Co., Ltd. (guar.), 13c
Apr. 4 Holders of rec. Mar. 15
Prudential Investors, Inc., $6 prof. (qu.) 8134 Apr. 15 Holders of rec. Mar. 31
Riverside Silk Mills, Ltd., el. A (guar.). 250
Apr. 1 Holders of rec. Mar. 15
rEoss Gear & Tool Co., div. action defer red.
Safeway Stores, Inc., corn. (guar.)
75e
Apr. 1 Holders of rec. Mar. 17
• y% preferred (guar.)
Apr. 1 Holders of rec. Mar. 17
6% preferred (guar.)
134% Apr. 1 Holders of rec. Mar. 17
Selected Indus., Inc., 8531 prior stk.(qu) $131 Apr. 1 Holders of rec. Mar. 17
Shattuck (F. G.) Co., corn. (quar.)60
Apr. 10 Holders of rec. Mar. 20
Sherwin Williams dc Co. of Canada—pre f. div. a etion de ferred.
Simpson (Robert) Co., pref.
53
May 1 Holders of rec. Apr. 15
Southern Mills (guar.)
Apr. 1 Holders of rec. Mar. 18
25c
South Acid & Sulphur Co., Inc., pt.(qr.)
Apr. 1 Holders of rec. Mar. 10
South Penn Oil Co
25c
Mar. 31 Holders of rec. Mar. 15
South West Pennsylvania Pipe Line(au) 51
Apr. 1 Holders of rec. Mar. 15
Sparta Founcity Co. (guar.)
,211,3
Mar.31 Holders of rec. Mar. 15
Oil Co. (Ky.)
Standard
25.0
Mar. 31 Holders of rec. Mar. 15
Starrett, L. S. Co., prof. (guar.)
5134 Mar.30 Holders of rec. Mar. 18
Superior 011 (Calif.), pref. (quar.)____ 2%
Mar,20 Holders of rec. Mar. 1
Superior Portland Cement, Inc
27Sie Apr. 1 Holders of rec. Mar.23
Supertest Petroleum, corn. (guar.)
25e
Apr. 1 Holders of rec. Mar. 15
(guar.)
Preferred A
5114 Apr. 1 Holders of rec. Mar. 15
3734c Apr. 1 Holders of roe. Mar. 15
Preferred B (guar.)
Tacony Palmyra Bridge Co.. A (guar.). 500
Mar, 31 Holders of rec. Mar. 10
r Thompson (John R.) div. action deterr ed.
Tide Water Associated 011, pref. div. omi tted.
Tide Water Oil, corn. div. omitted.
13%
Apr. 1 Holders of rec. Max. 15
Toronto Mortgage Co. (guar.)
500
Torrington Co. (guar.)
Apr. 1 Holders Of roe. Mar. 17
r Tr -Continental Corp., pref. div. action deferre d.
-United Dyewood Corp., pref. div. action Poste° ned.
$IM May 1 Holders of rec. Apr. 15
'United Biscuit Co. of Amer., pt. (qu.)
-United Loan Corp.(Etklyn., N. Y.)(qu.) 8134 Apr. 1 Holders of roe. Mar.20
Name of Company.
1697
Per
When
Share. Payable
Miscellaneous (Concluded).
United Shoe Mach. Corp., corn. (guar.) 6231c
373lc
Preferred (guar.)
Walgreen Co., 631% prof. (guar.)
131%
30c
Waukesha Motor Co. (guar.)
Westvaco Chlorine Prod. Corp.
131%
7% preferred (guar.)
6231c
Wilcox-Rich Corp_ class A (guar.)
$1
West Penn Pipe Lines (guar.)
231e
Western Exploration Co.(guar.)
Western Tablet de Stationery Corp.—
$131
Preferred (guar.)
Wright Hargraves Mines, Ltd.(guar.)-- u5c
Young (L. A.) Spring dc Wire, div. omitt ed.
Apr.
Apr.
Apr.
Apr.
Books Closed
Days Inclusive.
5 Holders of roe. Mar. 14
5 Holders of rec. Mar. 14
1 Holders of me. Mar.20
1 Holders of rec. Mar. 15
Apr. 1 Holders of roe. Mar. 15
Mar. 31 Holders of rec. Mar.20
Apr. 1 Holders of rec. Mar. 15
Mar. 20 Holders of rec. Mar. 15
Apr. 1 Holders of rec. Mar.21
Apr. 1 Holders of rec. Mar. 15
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week,these being given inwthe preceding table.
Name of Company.
Per
When
Share, Payable.
Railroads (Steam).
Alabama & Vicksburg (5.-a.)
3%
Atlanta& Charlotte Air Line(s-a)
5414
Bangor & Aroostook common (guar.).—
50e
Preferred (guar.)
141%
Boston & Albany (guar.)
52
Boston & Providence (guar.)
$2.125
Quarterly..
52.125
Quarterly
52.125
Chesapeake Corp.(guar.)
500
Chesapeake & Ohio. common (quar.)
234%
Preferred (semi-annual)
$3
Cincinnati Union Terminal 5% pf.(go.). 134%
Cleveland dr Pittsburgh, guar (quar.)
87Sio
Special guaranteed (quar.)
50e
Guaranteed (guar.)
87340
Special guaranteed (guar.)
500
Guaranteed (guar.)
87340
Special guaranteed (guar.)
50e
Erie & Pittsburgh 7% guaranteed (quar.) 8734 c
7% guaranteed (guar.)
87Sio
7% guaranteed (guar.)
87 Si0
Guaranteed betterment (guar.)
80e
Guaranteed betterment (gust.)
800
Guaranteed betterment (guar.)
800
Dayton & Michigan (semi-ann.)
87Sio
8% preferred (guar.)
51
Delaware RR. Co. (3.-a.)
81
Georgia RR. & Banking Co
$234
Grand Rapids & Indiana (5.-a.)
52
Lackawanna RR.of N.J.4% gtd.(qu.)_ $1
Mlll Creek Br Mine Hill Nay.& RR.(a-a) $IX
N.Y..Lacks.& Western,5% gtd.(qui- 8131
Norfolk & Western. common (quar.)
$2
North Carolina (s.
334
-a.)
North. RR.. of New Jer. 4% gtd.(guar.) $1
4% guaranteed (guar.)
$1
$1
4% guaranteed (guar.)
Pennsylvania
500.
Pittsb. Bessemer & L. Erie. corn.
750.
6% preferred (guar.)
$IM
Pittsburgh Fort Wayne & Chicago (gu.)
%
7% preferred (guar.)
131%
Quarterly.
134%
7% preferred (guar.)
131%
Quarterly
%
7% preferred (guar.)
134%
Quarterly
1%%
7% preferred (guar.)
114%
Pittsburgh Youngstown & Ashtabula
7% Preferred (guar.)
ISi%
7% preferred (guar.)
134%
7% preferred (guar.)
1St%
Reading Co.. 2nd preferred (guar.)
50e
•
Union Pacifle, corn
131%
Preferred (8.-a.)
2%
United N. J. RR.& Canal Co.(quar.).. 2Si%
Vicksburg Shreveport de Pao. pref.(s
-a). 2Si%
Common (5-a)
234%
Public Utilities.
Alabama Power Co.. $7 pref. (guar.).-- 131%
$6 preferred (guar.)
134%
$5 preferred (guar.)
1 S4%
American Gas & Else Co.. coca. (gust.).
25e,
$134
Preferred(guar.)
American Tel.& Tel.Co.(guar.)
523.1
Amer. Water Works& El.Co.,Com.(qui
250.
$6 1st preferred (guar.)
$1 34
Bangor Hydro Electric Co..7% pf.(qu.) 134%
6% preferred (guar.)
131%
Bell Telephone of Canada (guar.)
15134
Bell Telep. Co.of Penna.,631% pref
(au) 134%
Birmingham Wat Wks,6% pref.(guar.). 134%
Boston Elevated common (guar.)
5131
Brazilian Tr. It.& Pr. Co. Ltd., pf (go.) f 134%
Bridgeport Gas Light (guar.)
600
Brooklyn & Queens Transit $6 pref.(qui 5134
Brooklyn Union Gas Co. (guar.)
$131
Buffalo, Niagara & Erie Power Co.
55 preferred (guar.)
Preferred (guar.)
Series A
33o,
Butler Water (Pa.).7% prof.(guar.)---: 154%
Canada Nor,Pow.Corp.,Ltd.com.(Qui
20e.
134%
7% Preferred (guar.)
Coast Counties Gas & El.6% pf.(qu.)
134%
Commonwealth & So. Corp.. $6 pf.(gni $134
Connecticut Elec. Serer.. corn.(quar.)750.
Control. Gas Co.of N.Y.,corn.(guar.).- 61
5% Preferred (guar.)
%
Consol. Gas, El. Lt.& Pr. Co.of Balks.
Common (guar.)
90e
5% Preferred series A (guar.)
%
6% Preferred series D (guar.)
114%
% preferred series E (guar.)
131%
Consumers Power Co..$5 Pref.(guar.)-- IM %
6% Preferred (guar.)
134%
6.6 preferred (guar.)
1.65%
7% preferred (guar.)
I44%
6% preferred (monthly)
50e,
6 6% Preferred (monthly)
.
550.
Cont. Gas & El. Corp.,corn.(guar.)— - $13.4
Preferred (guar.)
UK
Duke Power Co.,corn.(guar.)
1%
Preferred (guar.)
1.34%
Duquesne Light Co.5% 1st pref.(qu.)
131%
Eastern Gas de Fuel Assoc.6% pf.(au.).
%
434% prior preference
51.125
El Paso Elec..7% pref. A (guar.)
%
$6 preferred B (guar.)
134%
Empire & Bay State Toles 4% gtd.(gu.) Si
4% guaranteed (guar.)
51
4% guaranteed (guar.)
$1
Empire Power Corp., 56 pref.(guar.).— 5134
Engineers Pub.Sony.,$43 pref.(guar.).
$134
$531 preferred (guar.)
$131
55 Preferred (guar.)
$14
,
$1,4
Apr.
Sept.
Apr.
Apr.
Books Closed
Days Inclusive.
Holders of rec. Mar. 8
Holders of roe. Aug. 20
Holders of rec. Feb. 280
Holders of roe. Feb. 28a
Holders of rec. Feb. 28a
Apr. 3 Holders of ree. Mar.20a
. 1
July 1 Holders of rec. June 20a
Oct. 1 Holders of rec. Sept.20a
Apr. 1 Holders of rec. Mar. 8
Mo. 1 Holders of rec. Mar. 8a
July 1 Holders of roe. June 8
Apr. 1 Holders of rec. Mar. 22
June 1 Holders of roe. May 10
ept
une
. Holders of rec. May 10
Holders of rec. Aug. 10
Sept. 1 Holders of rec. Aug. 10
Dee. 1 Holders of rec. Nov. 10
Dec. 1 Holders of rec. Nov. 10
June 10 Holders of rec. May 31
Sept 1 0Holders of rec. Aug. 31
pe 1
0
Holders of me. Nov. 30
c.
June 1 Holders of rec. May 31
Sept. I Holders of rec. Aug. 31
Dec. 1 Holders of rec. Nov.30
Apr. 1 Holders of rec. Mar. 16
Apr. 4 Holders of rec. Mar. 16
July 1 Holders of rec. Jane 15
Apr. 15 Holders of roe. Apr. 1
June 20 Holders of rec. June 10
Apr. 1 Holders of rec. May. 7
July 10 Holders of rec. July 3
Apr. 1 Holders of rep. May. 14
Mar. 18 Holders of rec. Feb. 28
Aug. 1 Holders of rec. July 20
June 1 Holders of roe. May 23
Sept. 1 Holders of rec. Aug. 21
Dec. 1 Holders of roe. Nov. 20
Mar,15 Holders of rec. Feb. 1 a
Apr. 1 Holders of rec. Mar. 1
June 1 Holders of rec. May 1
Apr. 1 Holders of rec. Mar. 1
Apr. 4 Holders of rec. Mar. 1
July 1 Holders of rec. June 1
July 4 Holders or rec. June 1
Oct. 1 Holders of re*. Sept.
Oct. 3 Holders of rec. Sept.
Jan.2'34 Holders of rec. Dee.
Jan.4'34 Holders of rec. Dec.
1
1
I
1
l
June 1 Holders of rec. May 2
Sept. 1 Holders of reo. Aug. 2
Dec. 1 Holders of rec. Nov.2
Apr. 13 Holders of rec. Mar.23
Apr. 1 Holders of rec. Mar. a
Apr. 1 Holders of ree. Mar. 0
Apr. 10 Holders of rec. Mar.20
Apr. 1 Holders of ree. Mar. 8
Apr. 1 Holders of me. Mar. 8
Apr. 1 Holders of rec. Mar. la
Apr. 1 Holders of rec. Mar. 15
May 1 Holders of rel. Apr. 15
Apr. 1 Holders of rec. Mar. 8
May 1 Holders of rec. Apr. 7
Apr. 15 Holders of reo. Mar.14a
May 1 Holders of rec. Apr. 7
Apr, 1 Holders of rec. Mar. 10
Apr. 1 Holders of rec. Max.10
Apr. 1 Holders of rec. Mar. 10
Apr. 15 Holders of rec. Mar. 23
Apr. 15 Holders of rec. Mar. 20
Mar. 15 Holders of rec. Mar. 1
Apr. 1 Holders of rec. Mar. 100
Apr. 1 Holders of rec. Mar. 15
Mar.31 Holders of rec. Mar. 17
Apr. 1 Holders of roe. Mar. 15
Apr. 1 Holders of rec. Mar. 1
May 1 Holders of ree. Apr. 15
Apr. 1 Holders of rec. May,15
Mar,31 Holders of rec. Feb. 28
May. 15 Holders of rec. Mar. 1
Apr. 25 Holders of rec. Mar.31
Apr. 15 Holders of rec. Mar. 31
Mar. 15 Holders of me. Feb. 25
Apr. 1 Holders of rec. Mar. 10
Apr. 1 Holders of rec. Mar. 15
May. 15 Holders of rec. Feb. 3
May 1 Holders of rec. Mar. 31
Apr. 1 Holders of rec. Mar. 15
Apr. 1 Holders of rec. Mar. 15
Apr. 1 Holders of rec. Mar. 15
Apr. 1 Holders of rec. Mar. 15
Apr. 1 Holders of roe Mar. 15
Apr. 1 Holders of me. Mar. 15
Apr. 1 Holders of roe. Mar. 16
Apr. 1 Holders of rec. Mar. 16
Apr. 1 Holders of rec. Mar.16
Apr. 1 Holders of rec. Mar. 15
Apr. 1 Holders of rec. Mar. 13
Apr. 1 Holders of rec. Mar. 13
Apr. 1 Holders of rec. Mar. 15
Apr, I Holders of rec. Mar. 15
Apr. 15 Holders of rec. Mar. 15
Apr. 1 Holders of rec. Mar.15
Apr. 1 Holders of rec. Mar. 15
Apr. 15 Holders of rec. Mar. Si
Apr. 15 Holders of rec. Mar. 31
June 1 Holders of rec. May 20
Sept. 1 Holders of me. Aug. 21
Deo, 1 Holders of rec. Nov. 20
Apr. 1 Holders of rec. Mar. 15
Apr. 1 Holders of roe. Mar. 160
Apr. 1 Holders of rec. Mar. 160
Apr. 1 Holders of reo. Max. 16a
Financial Chronicle
1698
Name of Company.
Per
When
Share. Payable.
Books Closed
Days Imitates.
Public Utilities (Concluded).
Electric Bond & Share Co.,$6 Prof.(qu.) 8134 May 1 Holders of rec. Apr. 6
$5 preferred (guar.)
$134 May 1 Holders of fee. Apr. 6
Escanaba Pow.dr Trao.8% pref.(q.)... 134% May 1 Holders of rec. Apr. 28
6% preferred (gum.)
134% Aug. 1 Holders of rms. July 27
6% preferred (guar.)
134% Nov. 1 Holders of rec. Oct. 27
6% preferred (Qum.)
134% 2-1-34 Holders of rec. Jan. 27
Frankrd & So.Phila.City Pass.Ity.(qu.)- 8434 Apr. 1 Holders of roe. Mar. 1
$134 Apr. 1 Holders of rec. Mar. 15
Georgia Power Co.. $6 prof. (guar.)
$5 preferred (guar.)
$134 Apr. 1 Holders of No. Mar. 15
Honolulu Gas,common
200.
Mar.31 Holders of roe. Mar.30
Illinois Bell Telephone (guar.)
$2
Illinois Power Co.6% pref.(guar.)
131% Apr. 1 Holders of roe. Mar. 15
134% Apr. 1 Holders of rec. Mar. 15
7% preferred (guar.)
Illinois Pow.& Lt. Corp.,6% Of.(qu.).- 134% Apr. 1 Holders of roe. Mar.10
2134 May 1 Holders of roe. Apr. 10
$6 preferred (guar.)
Ind.Hydro-Elec.Pow.Co.7% pt.(gm). 134% Mar.15 Holders of rec. Feb. 28
Indianapolis Wet.Co.5% pf. A (qu.)... 134% Apr. 1 Holders of roe. Mar.110
25e. Apr. 1 Holders of roe. Mar. 17
Jamaica Public Service Co.. Ltd.(gu.)-7% preferred (guar.)
134% Apr. 1 Holders Of rec. Mar. 17
Jamaica Water Supply Co.
134% May 1 Holders of roe. Apr. 10
-a.)
734% preferred (e.
Jersey Central Pow.& Light Co..
134% Apr. 1 Holders of rec. Mar.10
534% preferred (guar.)
6% preferred (guar.)
134% Apr. 1 Holders of roe. Mar. 10
7% preferred (guar.)
134% Apr. 1 Holders of roe. Mar. 10
Kansas City Power & Light pref. B(gu.) $134 Apr. 1 Holders of roe. Mar. 14
Kansas Elec. Pwr. Co., 7% pref. (guar.) 134% Apr. 1 Holders of roe. Mar. 15
6% prior preferred
134% Apr. 1 Holders of rec. Mar. 15
Kings County Lighting Co..7% Pf.(qu.) 1)1% Apr. 1 Holders of rec. Mar.20
e% preferred (guar.)
114% Apr. 1 Holders of rec. Mar. 20
5% preferred (guar.)
134% Apr. 1 Holders of rec. Mar. 20
Quarterly
$144 Apr. 1 Holders of roe. Mar. 20
Laclede Gas Light Co.,corn.(quar.).... $134 Mar.15 Holders erns,. Mar. 1
% Mar. 15 Holders of roe. Mar. 1
Lexington Utilities Co.631% pref. (an.)
Lookart Power, pref.(s-a)
8331 Mar.31 Holders of rec. Mar. 31
1.1160. Mar.31 Holders of roe. Mar. 15
Lone Star Gas Corp.. corn. (guar.)-Long Isl. Ltg.Co.,ser. A,7% pf.(qu.).. 134% Apr. 1 Holders of rec. Mar.15
Series B,6% preferred (guar.)
134% Apr. 1 Holders of roe. Mar.15
Louisville Gas & Elec.. ser A&B(Guar.). 4334% Mar.25 Holders of roes Feb. 28
Malone Light & Power Co.(monthly).
- 150. Mar.30 Holders of roe. Mar. 20
$134 Apr. I Holders of roe. Mar. 20
Memphis Natural Gas pref.(guar.)
Mohawk Hudson Pow.Corp..1st pf.(qu.) $114 May 1 Holders of roe. Apr. 15
2d preferred (guar.)
81,4 Apr. 1 Holders of roe. Mar.15
Monongahela West Penn Public Service
7% preferred (guar.)
134% Apr. 1 Holders of rec. Mar. 15
2% Mar. 15 Holders of roe. Mar. 1
Muncie Water Works,8% pf.(qu.)
Nassau & Suffolk Ltg.Co.,7% pf.(qu.). 134% Apr. 1 Holders of rec. Mar. 15
New England Gas & Electric Association
$134 Apr. 1 Holders of roe. Feb. 28a
$534 preferred (guar.)
Apr. 10 Holders of rec. Mar.31
New England Power Assn., corn.(qu.).. 500
8134 Apr. 1 Holders of ree. Mar. 10
Preferred (guar.)
2134 Mar.31 Holders of rec. Mar. 100
New England Tel. & Tel. (guar.)
N.Y.Pr.& Lt. Corp..7% Pref.(qua?.)
% Apr. 1 Holders of roe. Mar. 15
2134 Apr. 1 Holders of roe. Mar.15
$6 preferred (quar.)
N.Y.Richmond Gas Co..6% pf.(qu.).. 134% Apr. 1 Holders of rec. Mar.15
New York Steam Corp.,96 pref.(guar.).. 8134 Apr. 1 Holders of roe. Mar. 15
Apr. 1 Holders of roe. Mar.15
$134
$7 Preferred (guar.)
New York Telep. Co.,634% pref.(guar.) 134% Apr. 15 Holders of roe. Mar.20
500. Mar,28 Holders of roe. Mar. 15
New York Transportation Co.(quar.).
Newark Telep. Co.(Ohio),8% Pf. (1211.) 134% Apr. 1 Holders of roe. Mar.31
25e. Mar.31 Holders of roe. Mar. 3
Niagara Hudson Pow.(quar.)
Apr. 1 Holders of ree. Mar. 6
12%
North American Co., corn.(riar.)
Apr. 1 Holders of rec. Mar. 6
750
Preferred (guar.)
Apr. 25 Holders of roe. Mar.31
North Ontario Pow.Co.,Ltd.,com.(01.)- 500
134% Apr. 25 Holders of ree. Mar.31
6% Preferred (guar.)
Mar.13 Holders of rec. Feb. 6
$1
Northern Liberties Gas Co (s-a)
Nor. N. Y. Utilities, Inc.(monthly).... 1234e. Mar.30 Holders of rec. Mar. 20
Ohio Edison Co.,$7.20 pref.(quar.).... $1.80 Apr. 1 Holders of rec. Mar. 15
$138 Apr. 1 Holders of rec. Mar. 15
$7 preferred (quar.)
$1.65 Apr. 1 Holders of rec. Mar. 15
$6.60 preferred (guar.)
5134 Apr. 1 Holders of rec. Mar. 15
$6 preferred (guar.)
$11i Apr. 1 Holders of rec. Mar. 15
95 preferred (guar.)
Ohio Public Service Co. 7% pf.(mthly.) 58 1-3o Apr. 1 Holders of roe. Mar. 15
:
Apr. 1 Holders of roe. Mar.15
50e
6% preferred (monthly)
41 2-30 Apr. 1 Holders of roe. Mar.15
5% preferred (monthly)
°kis. Gas& Elec. Co.6% pref.(Qum.)
134% Mar. 15 Holders of rec. Feb. 28
1 % Mar.15 Holders of roe. Feb. 28
7% preferred (guar.)
Sc. Apr. 1
Peninsular Telephone Co.. corn.(guar.).
Pennsylvania Water & Pwr.,corn.(qu.). 75e. Apr. 1 Holders of rec. Mar. 15
5138 Apr. 1 Holders of rec. Mar. 22
Preferred (initial)
$134 Apr. I Holders of res. Mar. 1
Philadelphia Co., $8 pref. (quar.)
$1)i Apr. I Holders of roe. Mar. 1
$5 cum. preference (guar.)
Apr. 1 Holders of roe. Mar.10
Philadelphia Elec. Pow. Co.,8% Pt.(qu) 500
Philadelphia Sub. Wat. Co., pref.(qu.). 134% June 1 Holders of roe. May 12a
Public Service Corp. of N.J., Dom.(111.) 800. Mar.31 Holders of rec. Mar. 1
2% Mar.31 Holders of roe. Mar. 1
8% preferred (quar.)
% Mar.31 Holders of rec. Mar. 1
7% preferred (guar.)
5% preferred (guar.)
% Mar.31 Holders of roe. Mar. 1
500. Mar. 31 Holders of roe. Mar. 1
6% preferred (monthly)
Public Service Electric & Gas Co.
134% Mar.31 Holders of roe. Mar. 1
7% preferred (quar.)
$5 preferred (guar.)
$134 Mar.31 Holders of rec. Mar. 1
Savannah Elec. & Pow.Co..6% Pf.(s-a) 8% Apr. 1 Holders of rec. Mar. 10
2% Apr. 1 Holders of roe. Mar.10
8% preferred A (qua?.)
934% preferred B (quar.)
134% Apr. 1 Holders of roe. Mar. 10
% Apr. 1 Holders of rec. Mar. 10
7% preferred C(quar.)
1,4% Apr. 1 Holders of rec. Mar. 10
634% preferred!) (guar.)
South Carolina Power Co.,$6 pre/.(qu) 3134 Apr. 1 Holders of roe. Mar. 15
Sou. Calif. Edison Co.,Ltd.
Apr. 15 Holders of roe. Mar.20
2%
Original preferred
134% Mar. 16 Holders of rec. Feb. 20
7% A preferred (guar.)
134% Mar.15 Holders of roe. Feb. 20
Series B,6% preferred (quar.)
% Apr. 15 Holders of roe. Mar.20
Series C.534% preferred (guar.)
Son. Canada Pow.Co., Ltd.,6% pf.(top 134% Apr. 15 Holders of roe. Mar.20
Southern Colorado Power Co.
1St% Mar. 15 Holders of rec. Feb. 28
7% preferred. class A (qua?.)
Mar. 15 Holders of roe. Feb. 28
Standard Gas & Elec. Co.,$4 Of. (guar.) $1
20e. Apr. 1 Holders of rec. Mar. 20
Telephone Investors Corp.(monthly)._ _
Tennessee Elec. Pow. Co.,5% pf.(qu.). 134% Apr. 1 Holders of ree. Mar. 15
6% preferred (qua?.)
134% Apr. 1 Holders of rec. Mar. 15
134% Apr. 1 Holders of rec. Mar. 15
7% preferred (guar.)
$1.80 AM. 1 Holders of roe. Mar. 15
7.2% Preferred (guar.)
50e. Apr. 1 Holders of rec. Mar. 15
6% preferred (monthly)
60e. Apr. 1 Holders of roe. Mar. 15
7.2% preferred (monthly)
5% preferred (quar.)
134% July 1 Holders of rec. June 15
preferred (quar.)
154% July 1 Holders of rec. June 15
134% July 1 Holders of roe. June 15
74 preferred (qua?.)
$41.80 July 1 Holders of rec. June 15
7.2% preferred (quar.)
May 1 Holders of rec. Apr. 15
50e
6% preferred (monthly)
June 1 Holders of rec. May 15
50e
preferred (monthly)
8%
500
July 1 Holders of roe. June 15
6% preferred (monthly)
May 1 Holders of reo. Apr. 15
600
7.2% preferred (monthly)
June 1 Holders of roe. May 15
800
7.2% preferred (monthly)
July 1 Holders of roe. June 15
600
7.2 preferred (monthly)
Toledo Edison Co..7% prof.(monthly). 58 1-3o Apr. 1 Holders of roe. Mar. 15
Apr. 1 Holders of roe. Mar.15
6% preferred (monthly)
'500
41 2-3o Apr. 1 Holders of roe. Mar.15
5% preferred (monthly)
Union ELLt.& Pr.Co.(I11.).6% pf..(qu.) 134% Apr. 1 Holders of roe. Mar. 15
Union ELLt.& Pr.Co.(Mo.).7% Pf.
(Qui 141% Apr. 1 Holders of roe. Mar. 15
Union EI.Lt.ar Pr.Co.(Md.)
.6% p1.
(qu.) 134% Apr. 1 Holders of rec. Mar. 15
10e. Apr. 1 Holders of roe. Feb. 24
United:Corp.,corn.(guar.)
750. Apr. 1 Holders of roe. Feb. 24
Preferred (qua?.)
United Gas & Elee. Corp.. pref.(qear.). 144% Apr. 1 Holders of reo. Mar. 16
United Light & Rys. Co.(Del.)
38 1-30 Apr. I Holders of roe. Mar. 15
7% preferred (monthly)
530. Apr. 1 Holders of roe. Mar. 15
6.36% preferred (monthly)
50e. Apr. 1 Holders of rec. Mar. 15
6% preferred (monthly)
(an.) 30e. Mar.31 Holders of roe. Feb. 28
United Gas Improvement Co..corn.
2138 Mar.31 Holders of roe. Feb. 28
Preferred (quar.)
Virginia Public Service Co., 7% pf.(qu.) 1g % Apr. 1 Holders of rec. Mar. 10
134% Apr. 1 Holders of rec. Mar. 10
6% preferred (guar.)
Name of ComPrinfr.
March 11 1933
Per
When
Share. Payable.
Books Closed
Days Indwass.
Public Utilities (Concluded).
Virginia Elec. dc Power Co..$6 pref.(M.) $134 Mar. 20 Holders of roe. Feb. 28
Washington Water Pwr. Co.,86 pt.(qu.) $134 Mar. 15 Holders of rec. Feb. 25
West Penn Elect. Co., class A (qua?.).. $114 Mar.30 Holders of roe. Mar. 17
West Penn Power Co.. 6% prof. (quar.) 134% May 1 Holders of rec. Apr. 5
138% May 1 Holders of roe. Apr. 5
7% preferred
Wisconsin Elec. Pwr.,634% pref.(qu.). 134% Apr. I Holders of reo. Mar.15
13.1% Air. 1 Holders of rec. Mar. 15
6% preferred (quar.)
eWLsconsin Pr.& Lt. Co., 6% pref. div. action d eferred.
7% preferred, env. action deferred.
Wisconsin Pub.Serv. Corp.,7% pf.(qu.) 134% Mar. 20 Holders of roe. Feb. 28
% Mar. 20 Holders of reo. Feb. 28
634% preferred (guar.)
134% Mar. 20 Holders of rec. Feb. 28
6% preferred (quar.)
Banks & Trust Companies.
Bank of Manhattan Co.(quar.)
Chase National Bank (guar.)
Commercial Investors Trust
7% 1st preferred (qua?.)
634% 1st preferred (guar.)
Commercial Nat. Bk.& Tr. Co.(quar.).
Guaranty Trust Co. (guar.)
Public National Bank dr Trust (quar.)
United States Trust Co. (qua?.)
50e
500
Apr. 1 Holders of recs. Mar. 154
Apr. 1 Holders of roe. Mar.11
134%
144%
$2
$5
500
$15
Apr. 1 Holders of roe. Mar. 4
Apr. 1 Holders of rec. Mar. 4
Apr. 1 Holders of rec. Mar. 15
Mar. 31 Holders of rec. Mar. 3
Apr. 1 Holders of roe. Mar.:20
Apr. 1 Holders of roe. Mar.21
Fire Insurance Companies.
Boston Ins. Co. (quar.)
Glen Falls Insurance Co., (quar.)
Home Fire & Marine Ins. Co. (qua?.)..
SpringfieldFire dr Marine Ins. Co.(qe.)
United States Fire Ins. Co.(guar.)
Wart American Ins. Co
44
40e.
500
81.13
30e.
$1
Apr. 1 Holders of roe. Mar.20
Apr. 1 Holders of roe. Mar.15
Mar.15 Holders of roe. Mar. 8
Apr. 1 Holders of rect. Mar.15
May 1 Holders of reo. Apr. 20
Miscellaneous.
Apr. 1 Holders of roe. Mar.17
Abbott Laboratories. Inc., corn. (guar.) 500
Mar.31 Holders of roe. Mar.21
Abraham & Straus. Inc., corn. (qua?.).. 300
AgnewBurp. Shoe St. Ltd..7% pf.(qU.)- 138% Apr. 1 Holders of re*. Mar.15
Allied Chemical & Dye Corp., pref.(qu.) 138% Apr, 1 Holders of rec. Mar.10
Alpha Portland Cement.7% pf(qua?.).. 134% Mar.15 Holders of roe. Mar. 1
American Bank Note Co., pref. (qur.). 131% Apr. 1 Holders of ree. Mar.13a
138% Apr. 1 Holders of me. Mar. 162
American Can Co., ref. (guar.)
50e. Apr. 1 Holders of rec. Mar.11
American Chicle do.(guar.)
25e. Apr. 1 Holders of roe. Mar. 11
Extra
M. Holders of rec. Mar. 3
15
$2
American Cigar Co., corn.(quar.)
$134 Apr. 1 Holders of rec. Mar. 17
Preferred (quar.)
American Dock Co.,8% pref.(quar.)... 2% Apr. 1 Holders of rec. Feb. 20
American Envelope,7% pref.(qua?.)... 134% June 1 Holders of roe. M2,9 25
% Sept. 1 Holders of roe. Aug.25
7% preferred (guar.)
7% preferred (quar.)
134% Doe. 1 Holders of rec. Nov.28
Apr, 1 Holders of res. Mar.15
250
American Hawaiian SS. Co., corn. (qu.)
Apr. 1 Holders of roe. Mar.14a
American Home Prod Corp.(monthly).. 350
$138 Mar.31 Holders of roe. Mar.15
American Mfg. Co., pref. (guar.)
Mar. 15 Holders of roe. Mar. 4
25e
American News Co.,Inc.(hi-monthly)
Apr. 1 Holders of roe. Mar.16
3%
AmericanSnuff Co., corn.(War.)
134% Apr. I Holders of roe. Mar. 16
Preferred (guar.)
American Steel Foundries. pref.(quar.). 500. Mar.31 I/Folders of rec. Mar. 15
500. Apr. 1 aolders of roe. Mar. 16
American Stores Co.. corn.(quar.)
500. Apr. 3 Holders of rec. Mar. 80
American Sugar Ref.Co.,corn.(quar.)
134% Apr. 3 Holders of res. Mar. 8a
Preferred (quar.)
Amer. Tob. Co.. Inc., preferred (guar.). 131% Apr. 1 Holders of rec. Mar. 10
July 3 Holders of rec. Juno 24
$1
Amoskeag Co. common (e-a)
$234 July 3 Holders of ree. June 24
Preferred (84)
Apr, 1 Holders of rec. Mar.20
150
Anchor Cap Corp. cam. (guar.)
5134 Apr. 1 Holders of roe. Mar.20
Preferred (quar.)
Armour & Co. of Del. pref.(guar.).- $138 Apr. 1 Holders of roe. Mar. 10
Mar.31 Holders of reo. Mar. 21
$1
Associates Investment Co.. Corn.
'
$138 Mar. 31 Holders of rec. Mar.21
Preferred (guar.)
250 Mar. 15 Holders of rec. Feb. 21
Atlantic Refining, Corn. (qum.)
$114 Mar.15 Holders of rec. Feb. 28
Baldwin Co.. class A pref.(guar.)
8134 Apr. 1 Holders of reo. Mar.27
Barber(W.X.), pref.(quar.)
3134 July 1 Holders of rec. June 26
Preferred(quar.)
$144 Oct. 1 Holders of rec. Sept.26
Preferred (quar.)
Barnet Leather Co., Inc., pf. (liquld'g) 2234%
1234e. Apr. 1 Holders of rec. Mar. 31
Beaton & Cadwell Mfg. Cs.(monthly)
Beatrice Creamery Co.. pref. (quar.)--- $141 Apr. 1 Holders of roe. Mar. 14
750 Apr. 1 Holders of roe. Mar.13
Beech-Nut Packing Co.. corn. (qua?.)
134% Apr. 15 Holders of rec. Apr. 1
7% preferred A (quer.)
$134 Mar. 15 Holders of rec. Feb. 28
Belding Corticelll, Ltd., Pref. (quar.)
250
Jan. 12 Holders of roe. Jan. 12
Bornot, Inc., class A
zw2% Mar.21 Holders of rec. Feb. 17
Bevil Ltd., del.rec.shs
rio2% Mar.28 Holders of rec. Mar. 1
Amer. dep. rec. for def. reg. fibs
w334% Mar.21 Holders of roe. Feb. 17
734% ord. reg. ohs
Amer. dep. roe,for 734 %ord.reg.shs_x w314% Mar.28 Holders of rec. Mar. 1
75e. Mar.25 Holders of rec. Mar. 20
Brewer(C.)& Co.(monthly)
250
Mar.31 Holders of reo. Mar. 20
Briggs & Stratton Corp.. corn. (quar.)
150
Apr. 1 Holders of roe. Mar.15
Brillo Mtg. Co.. Inc., cont.(guar.)
Apr. 1 Holders of rec. Mar. 15
500
Class A (quar.)
Apr. 1 Holders of rec. Mar. 18
British Amer. Oil Co.,Ltd.. cap.(guar.) 5200
wl0d Mar.31 Holders of roe. mar.
Brit.
-Amer. Tobacco, Ltd..5% pf.
500 Apr. 1 Holders of roe. Feb. 28
Bucyrus-Erie Co.. 7% Prof
750. Mar. 15 Holders of roe. Feb. 17
Buckeye Pipe Line Co.(qum.)
Burma Corp., Ltd., Am.dep.roe.(Int.). w134an Apr. 20 Holders of roe. Mar. 10
tv134an Apr. 20 Holders of rec. Mar. 10
Ordinary register
Burt(F. M.) dr Co. Ltd., pref.(quar.). 1134% Apr. 1 Holders of rec. Mar. 15
11500. Apr. 1 Holders of rec. Mar. 15
Common (quar.)
40e. Apr, 1 Holders of rec. Mar. 15
Colombo Sugar Estates (guar.)
35e. Apr. 1 Holders of roe. Mar. 15
Preferred (guar.)
Apr. 1 Holders of roe. Mar. 15
$1
Cambria Iron Co.(s.
-a.)
Canadian Car & Foundry Co.. Prof.(qu.) Pleed, Apr. 10 Holders of rec. Mar. 27
Apr. 1 Holders of roe. Mar.20
$2
Canadian Oil Cos.. Ltd.. pref.(guar.)3734c Mar. 31 Holders of rec. Feb. 15
Canadian Silk Products Corp., class A
$134
Mar. 31 Holders of roe. Mar. 20
Canfield 011 Co.. pref. (guar.)
87340. Jan. 81 Holders of roe. Jan. 14
Cartier, Ina.. 7% pre/
Apr, 1 Holders of rec. Mar. 11
$1
Case (J. I.) Co., 7% cum. pref.
$1.08
Central Manhattan Properties
Centrifugal Pipe Line Corp.eapktk.(qu.) 100. May 15 Holders of rec. May 5
10e. Aug. 15 Holders of rec. Aug. 5
Capital stook (qua?.)
10e. Nov. 15 Holders of rec. Nov. 6
Capital stock (quar.)
Champion Coated Paper Co. pref.(q.). $138 Apr. 1 Holders of rec. Mar. 20
$138 Apr. 1 Holders of roe. Mar. 20
Special preferred (guar.)
$144 Apr. 1 Holders of roe. Mar. 20
Champion Fiber Co.. pref.(guar
81
Mar.31 Holders of rec. Mar. 10
Chesebrough Mfg. Co.(guar.)
500. Mar.31 Holders of roe. Mar. 10
Extra
Cincinnati Wholesale Grocery
134% Apr. 1 Holders of roe. Mar. 15
6% preferred (quar.)
500. Mar.31 Holders of roe. Mar. 16
City Ice dr Fuel. corn.(guar.)
Apr. 1 Holders of rec. Mar. 20
500
Clorox Chemical Co. (guar.)
6d
Coats (J. & P.), Ltd.,com.(guar.)
Coca-Cola Internat. Corp. corn. (qu.) $331 Apr. 1 Holders of roe. Mar. 11
$134 Apr. 1 Holders of rec. Mar. 10
Colgate-Palmollve-Peet. prof.(quar.)
250
Mar.31 Holders of rec. Mar. 11
Colt's Patent Fire Arms(guar.)
Mar. 31 Holders of reo. Mar. 11
Commercial Credit. 8% pref. B (qua?.) 500
43380 Mar.31 Holders of ree. Mar.11
7% preferred (guar.)
134% Mar.31 Holders of roe. Mar. 11
634% preferred (guar.)
Commercial Invest. Trust Corp. (qua?.) 50e. Apr. 1 Holders of rec. Mar. 14
Convertible pref. optional ser. of 1929 /1-52 Apr. 1 Holders of rec. Mar. r4
350. Mar.15 Holders of reo. Feb. 28
Compressed Industrial Gases (guar.).150. Mar.16 Holders of rec. Mar. 1
Congoleum-Nalrn, Inc.. corn. (qua?.)..
250
Congress Cigar Co.(quar.)
Mar.30 Holders of roe. Mar. 14
Consolidated Gold Fields of So. Af., Ltd.
Amer. dep. rec. ord. reg.(interim)_
veil% Mar.23 Holders of roe. Feb. 27
Consolidated Paper Co.. 7% pref. (flu.) 1734e. Apr. 1
% Apr. 1 Holders of rec. Mar. 15
Continental Gln. 6% prof. (guar.)
10e. Mar.15 Holders of rec. Mar. 4
Cord Corp
July 1
Cottrell(C. B.)& Sons Co.(annual)...,. $4
134% Apr. 1
6% preferred (guar.)
134% July 1
6% preferred (guar.)
6% preferred (quar.)
% Oct. I
154% 1-1-'34
6% preferred (quar.)
Courtaulds. Ltd., Am.dep. rec. ord.reg_ w234% Mar. 23 Holders of ree. Feb. 20
Crown Cork & Seal Co., Inc., pref. (qu.) 67o. Mar. 15 Holders of rec. Feb. 282
Apr. 1 Holders of roe. Mar. 13
Crown Willamette Paper Co.. It pf.(qu) /41
Name of Company.
1699
Financial Chronicle
Volume 136
When
Per
Share. Payable.
Hooks Closed
Days Inclusive.
Name of Company.
Per
When
Share. Payable,
Books•Closeil
Days litclusise.
Miscellaneous (Continued).
Miscellaneous (Continued).
Mathieson Alkali Works,corn.(guar.) _ 37310. Apr. 1 Holders of roe. Mar. 84
Mar.31 Holders of rec. Mar.21
$2
Crum & Forster, preferred Muir./
$134 Apr. 1 Holders of rec. Mar. 8
Preferred (qua?,)
1,4% Mar.15 Holders of roe. Mar. 1
Cuneo Press, Bre.631% Prof.(guar.)Mar.15 Holders of see. Mar. 1 I
560
Mayflower Associates, Inc.(guar.)
500. Apr. 1 Holders of rec. Mar.20
De Long Hook & Eye Co.(guar.)
150. Mar. 15 Holders of roe. Feb. 15
McColl Frontenao Oil Co.,corn.((NJ
25o. Apr. 1 Holders of rec. Mar.20
Extra
Mar.31 Holders of rec. Mar. la
40o
Mergenthaler Linotype
Devoe & Reynolds, 1st & 2d pref. (qu.) $151 Apr. 1 Holders of roe. Mar.21
Apr. 1 Holders of rec. Max.16
150
Mesta Machine (qua?.)
250. Apr. 20 Holders of rec. Mar.31
Dome Mines(guar.)
6134 Apr. 1 Holders of roe. Mar. 16
Preferred (guar.)
200. Apr. 20 Holders of rec. Mar.31
Extra
Metro-Goldwyn Pictures Corp.. pf.(go.) 131% Mar.15 Holders of rec. Feb. 24
Dominion Bridge Co., Ltd. (guar.).
- 1500. May 15 Holders of roc. Apr. 29
Monroe Chemical Co.. prof.(quer.)---- 8734e. Apr. 1 Holders of roe. Mar.10
Apr. 1 Holders of reo. Mar. 15
-5/300
Dominion Stores, Ltd., corn.(guar.).
31 Me. Apr. 1 Holders of rec. Mar. 10
Monsanto Chemical Works (qua:.)
Apr. 1 Holders of rec. Mar. 15
Dominion Textile Co., corn. (qua:.)._.. /61
134% Mar. 15 Holders of reo. Feb. 28
Montreal Cottons, Ltd.. Prof. (qua:.)
Apr. 16 Holders of rec. Mar.31
1.$13I
Preferred (guar.)
/75o. Mar. 15 Holders of rec. Feb. 28
Montreal Loan & Mtge.(guar.)
37310. Mar.21 Holders of rec. Mar. 1
Douglas Aircraft, Inc. (8.-a.)
125o. Mar. 15 Holders of rec. Feb. 28
Extra
500. Apr. 1 Holders of rec. Mar. 4
Draper Corp. (guar.)
Moore (Wm.) Dry Goods Co.(qua:.).. $131 Apr. 1
rec. Mar. 13
Apr. 1 Holders of
$2
Duplan Silk Corp.. pref.(quer.)
2131 July 1
Quarterly
Mar.16 Holders of rec. Mar. 1
E.I.duPont de Nemours& Co.,com.(gu.) 500
$131 Oct. 1
Quarterly
134% Apr. 25 Holders of rec. Apr. 10
Debenture stock (guar.)
2131 1-1-'34
Quarterly
750. Apr. 1 Holders of roe. Mar. 4
Eastman Kodak Co.,corn.(guar.)
500. Mar.15 Holders of reo. Feb. 25
Morrell &
Inc.. common (guar.).$131 Apr. 1 Holders of rec. Mar. 4
Preferred (guar.)
506. Mar.15 Holders of rec. Feb. 26
Morrell(John)& Co.,Inc.(qua?.)
Co.,
Edison Bros. Stores, Inc., pref.(guar.).. $134 Mar,15 Holders of rec. Feb. 28
% Apr. 1
Morris Sc. & 10e. to $1 fits.. 7% Pt.(qu.)
.
Apr. 1 Holders of rec. Mar.20
Electric Controller & Mfg. Co.(guar.) - 250
7% preferred (guar.)
% July 1
Apr. 1 Holders of rec. Mar. 11
Electric Storage Battery Co.. eon).(gu.) 50o
7% preferred (qua:.)
154% Oet. 1
Preferred (guar.)
Apr. 1 Holders of rec. Mar. 11
50e
7% preferred (guar.)
154% 1-2-34
Eppens, Smith & Co.
Aug. 2 Holders of roe. July 25
$2
$1.37 Mar.31 Holders of rec. Ms:.21
Morris Finance A (guar.)
Equitable Office Bldg. Corp., corn.(qu.) 250
Apr. 1 Holders of roe. Mar. 15
21.
B (quarterly)
2734e Mar.31 Holders of roe. M.
Preferred (quar.)__
134% Apr. 1 Holders of rec. Mar. 15
$114 Mar.31 Holders of roe. Mar.21
Preferred (guar.)
Ewa Plantation Co.(quer.)
60e. May 15 Holders of roe. May 6
Mar.31 Holders of no. Feb. 28
250
Motor Finance Corp (guar.).
Farmers & Traders Life Ins.(Syracuse)
200. Apr. 1 Holders of rec. Mar. 1150
Mountain Producers Corp.(guar.)
Quarterly
•
8231 Apr. 1 Holders of no. Mar. 11
$131 Mar.31 Holders of roe. Mar. 15
Myers(F.E.)& Bros.. pref.(qua:.)
Faultless Rubber Co.,corn.(guar.)
50e. Apr. 1 Holders of roe. Mar. 15
70o. Apr. 15 Holders of rec. Mar.17
National Biscuit, common (guar.)
Mar. 15
Fear (Fred)& Co.,corn.(guar.)
500
25e. Mar,15 Holders of rec. Feb. 28
National Bond & Share Corp
Federated Dept.Stores. Inc.(qua:.)150. Apr. 1 Holders of roe. Mar.21
400 Apr. 1 Holders of roe. Mar. 15
National Breweries, Ltd.. common ((111.)
Fifth Ave. Bus Securities(qua:.)
160. Mar.29 Holders of roe. Mar. 15
44c Apr. 1 Holders of rec. Mar. 15
Preferred (guar.)
Florshelm Shoe Co.,6% cum. pt.(qu.).. 135% Apr. 1 Holders of roe. Mar. 15
6231c Apr. 1 Holders of rec. Mar.22
National Distillers Prod. pref.(guar.)
Holders of roe. Mar. 10
Food Machinery Corp.. pref.(monthly). 500. Mar.15
Apr. 1 Holders of rec. Mar.10
Am., pf. (qu.) 150
National Finance Corp. of
5%
FordMotor Co. of Belgium
Apr. 1 Holders of rec. Mar. 10
be
Extra
Freeport Texas, new 6% prof. (qua:.).. 134% May 1 Holders of roe. Apr. 14
$134 Mar.31 Holders of rec. Mar. 17
National Lead Co.common (guar.)
Mar. 15
Galland Mercantile Laundry (guar.).81 16 2-3 Apr. 1 Holders of rec.
131% Mar. 15 Holders of rec. Mar. 3
7% preferred A (guar.)
$1% Mar.15 Holders of roe. Mar. 8
Gamewell Co., pref. (guar.)
6131 May 1 Holders of rec. Apr. 21
Preferred B (guar.)
Apr. 25 Holders of ree. Mar. 100
100
General Electric Co.. corn. (guar.)
50o. Apr. 1 Holders of rec. Mar. 1
Apr. 25 Holders of roe. Mar. 100 National Sugar !Mfg. Co. of N. J
150
Special (guar.)
10o. Apr. 1 Holders of rec. Mar.20
$131 Apr. 1 Holders of roe. Mar. 14a N F Ship Bullding Corp.,Panto.& tdrs.General Mills, Inc., pref. (qua:.)
Preferred (guar.)
134% Apr. 1 Holders of rec. Mar.20
Holders of roe. Feb. 18
250. Mar.13
General Motors Corp., corn.(quar.)--Apr. 15 Holders of rec. Mar.24
New York Transit Co.. cap. stk. (s-a)-- 15e
$13( May 1 Holders of roe. Apr. 10
$5 preferred (guar.)
150. Apr. 1 Holders of rec. Mar. le
Newberry (J. J.) Co., corn..(guar.)
Apr. 1 Holders of roe. Mar. 10
General Ry. Signal Co., corn.(guar.)... 250
Niagara Share Corp. of Md.$131 Apr. 1 Holders of rec. Mar.10
Preferred (guar.)
$131 Apr. 1 Holders of roe. Mar. 16
Class A $6 preferred (guar.)
Mar.31 Holders of rec. Mar.21
25o
Gillette Safety Razor (quer.)
8131 July 1 Holders of n3o. June 16
Class A 26 preferred (qua:.)
$13‘ May 1 Holders of rec. Apr. 1
Preferred (guar.)
Class A $6 preferred (guar.)
$131 008. 1 Holders of roe. Sept. 16
$1% Apr. 1 Holders of rec. Mar.17
Glidden co., pref.(guar.)
Class A $6 preferred (qua:.)
8134 Jan2'34 Holders of roe. Dec. 16
Globe Mart.& Fin. Corp.,7% pf.(go.). 87340 Mar. 15 Holders of roe. Mar. I
Nineteen Hundred Corp., class A (guar.) 50e. May 15 Holders of roe. May 1
2131 Mar.31 Holders of rec. Mar.17
Gold Dust, $6 pref. (guar.)
500. Aug. 15 Holders of roe. Aug. 1
Class A (guar.)
Goodyear Tire & Rubber Co.. prof.(qu.) 50o. Apr. 1 Holders of roe. Mar. 1
50o. Nov.15 Holders of ree. Nov. 1
Class A (guar.)
Gottfried Baking Co., Inc., el. A (guar.) 76e. &pr. 1 Holders of roe. Mar.20
North American 011 Consolidated
10o Apr. 1 Holders of roe. Mar.20
750. July I Holders of rec. June 20
Class A (guar.)
North Central Texas 011, pref.(qua:.)
2131 Apr. 1 Holders of rec. Mar. 10
75e. Oct. 1 Fielders of rec. Sept. 20
Class A (guar.)
87310 Apr. 1 Holders of roe. Mar.22
Norwalk Tire & Rubber Co. pref.(qu.)
Apr. 1 Holders of rec. Mar.20
134%
Preferred (guar.)
Ohio Finance Co. (guar.)
37310 Apr. 1 Holders of rec. Mar. 10
134% July . 1 Holders of roe. June 20
Preferred (guar.)
$131 Mar. 15 Holders of rec. Mar. 4
Onio 011 Co.. preferred (guar.)
134% Oct. 2 Holders of roe. Sept. 20
Preferred (quer.)
Apr. 1 Holders of reo. Mar. 15
Omnibus Corp., pref. (guar.)
$2
Preferred (guar.)
134% Jn.2 '34 Holders of reo. Dee. 20
Owens-Illinois Glass Co.. prof.(qua:.).. $151 Apr. 1 Holders of roe. Mar. 16
Govt. Gold Mining Areas Cons.. Ltd.
25e A. 1 Holders of roe. Mar. 15
Pacific Indemnity Co.(qua:.)
of roe. Dee. 30
Holders
w45%
Amer. dep. reo, reg. shares
Page-Hersey Tubes, Ltd., pref.(qua:.).. $111 Apr. 1 Holders of rec. Mar. 20
25e. Apr. 1 Holders of rec. Mar. 13
Grant(W.T.) Co.(guar.)
1750. Apr. 1 Holders of rec. Mar.20
Common (guar.)
$1% Apr. 1 Holders of rec. Mar. 15
Great Western Sugar, pref. (guar.)
Pan American Petroleum & Transport
87310. Apr. 1 Holders of roe. Mar.21
Grief & Bros., class A (guar.)
20o. Mar.15 Holders of roe. Feb. 16
Common and common B (guar.)
7% preferred (guar.)
134% Apr. 1 Holders of reo. Mar.21
Mar.31 Holders of rec. Mar.20
Parke Davis & Co. (guar.)
260
Hamrnermill Paper Co.,6% pref.(guar) 134% Apr. 1 Holders of rec. Mar. 15
25o. Mar.13 Holders of rec. Feb. 27
Penick & Ford (guar.)
Hanna(M.A.) Co., pref.(guar.)
$151 Mar.20 Holders of rec. Mar. 11
30e. Mar.31 Holders of rec. Mar. 20
Penney (J. C.) Co.,corn.(guar.)
134% June 1 Holders of roe. May 15
Hardesty (R.), 7% pref. (guar.)
131% Mar.31 Holders of rec. Mar.20
Preferred (qua:.)..
7% preferred (guar.)
13.1 % Sept. 1 Holders of rec. Aug. 16
25o Apr. 1 Holders of rec. Mar. 8
Peoples Drug Stores common (qua:.)...
7% Preferred (guar.)
134% Dec. 1 Holders of roe. Nov.15
% Mar. 15 Holders of rec. Mar. 1
634% preferred (guar.)
Mar. 16
Harrods, Ltd., pref. (s.
834%
-a.)
600. Apr. 1 Holders of rec. Mar. 17
Perfect Circle Co., corn.(guar.)
1933
10
Ordinary register
30e. Mar.31 Holders of rec. Mar.20
Perfection Steve Co.(guar.)
1933
Amer. dep. roe. for ord. reg
10
Pet Milk Co., pref. (guar.)
$151 Apr. 1 Holders of roe. Mar. 11
Hazel-Altas Glass Co
750. Apr. 1 Holders of rec. Mar.15
6501Ire
Pirelli Co.of Italy
25e. Apr, 1 Holders of rec. Mar. 15
Extra
Powdrell & Alexander, pref. (guar.).
Helms(Geo. W.) eom.(guar.)._
Apr. 1 Holders of rec. Mar. 11
- $154 Apr. 1 Holders of roe. Mar. 17
6134
Pratt & Lambert,Inc.,common (guar.). 12310 Apr. 1 Holders of rec. Mar. 15
Preferred (guar.)
$151 Apr. 1 Holders of rem Mar. 11
Procter & Gamble Co.5% pref.(guar.). 1M % Mar. 15 Holders of rec. Feb. 24
Hercules Powder Co.. corn. (guar.)
37340 Mar.25 Holders of roe. Mar. 14
--Apr. 1 Holders of roe. Mar. 10
50e
Pure 011 Co. 8% pref
Hoyden Chemical Corp.. prof.(quer)
- $1,1 Apr. 1 Holders of rec. Mar. 15
3734c Apr. 1 Holders of roe. Mar. 10
8% preferred
Hibbard, Spencer, Bartlett & Co.
3731e Apr. I Holders of rec. Mar. 10
Monthly
534% preferred
100. Mar.31 Holders of roe. Mar. 24
May 1 Holders of roe. Dee. 31
Puritan Ice Co.,pref.(s.
$4
-a.)
Hiram Walker-Good.& Worst, Ltd.
Apr. 15 Holders of rec. Apr. 1
Preference capital stock (quer.)
$1
1250. Mar. 15 Holders of rec. Feb. 24
Quaker oats Co.common (guar.)
Apr. 15 Holders of roe. Apr. 1
$1
Dee. le
Holland Land (liquidating)
Extra
Holders of roe.
500.
6% preferred (guar.)
131% May 31 Holders of roe. May 1
Humble Oil & Refining Co.(qua:.)
Apr. 1 Holders of rec. Mar. 2
500
15o. Mar.15 Holders of rec. Feb. 28
Hunts Ltd., A & B
RaYbeetos-Manhattan, me. (qua:.)....
12310 Apr. 1 Holders of rec. Mar.17
Reeves (Daniel), Inc.,arm.(guar.)
37310 Mar. 15 Holders of roe. Feb. 28
Huron & Erie Mfg. Corp. (guar.)
Apr. 1 Holders of re0. Mar.15
$2
134% Mar. 15 Holders of rec. Feb. 28
Imperial Tobacco Co. of Can., Ltd.
831% preferred (qua:.)
134% Mar. 15 Holders of rec. Feb. 28
Ord. shares (interim)
Reliance Grain Co., Ltd., pref.(guar.)
Mar.31 Holders of ree. Mar. 1
134%
Preference shares (s-a)
Mar.31 Holders of roe. Mar. 1
3%
Reliance Mfg. Co. of Ill., pref.(qua:.)... $15( Apr. 1 Holders of rec. Mar. 21
75e. Apr. 1 Holders of rec. Mar. 18
Reynolds(R.J.) Tobacco Co.(guar.) Internat. Business Machines (guar.).- $131 Apr. 10 Holders of rec. Mar.22
750. Apr. 1 Holder; of rec. Mar. 18
Class B (guar.)
International Harvester, corn
15e. Apr. 15 Holders of roe. Mar.20
International Lite Ins.(liquidating)
Rice Stix Dry Goods Store, 1st pf.(au.)- $1% Apr. 1 Holders of rec. Mar. 15
8134
8731e Apr. I Holders of rec. Mar. 16
International Petroleum Co., Ltd
2nd preferred
ta5c. Mar,15 Holders of rec. Feb. 28
Riches. Inc.,34% profaned (guar.).- 134% Mar.31 Holders of rec. Mar. 16
Internat'l Proprietaries, Ltd.. OLA (qu.) 650
Mar. 15 Holders of roe. Feb. 25
250. Mar. 15 Holders of rec. Mar. 1
Ruberold CO. (guar.)
Mar. 15 Holders of roe. Feb. 25
Class A (partlelpation)
Sc
230 Mar. 15 Holders of rec. Feb. 28
International Salt Co. (guar.)
Schiff Co. common (guar.)
37310. Apr. 1 iholders of rec. Mar. 15
International Shoe Co.,corn.(qua:.)_
$151 Max. 15 Holders of roe. Feb. 28
Preferred (guar.)
50o. Apr. 1 Holders of rec. Mar. 15
350. Mar.31 Holders of rec. Mar. 17
Scott Paper Co.,corn.(guar.)
Preferred (monthly)
600. Apr. 1 Holders of roe. Mar. 16
250. Apr. 1 Holders of rec. Mar. 15
Scovill Mtg. Co. (qua:.)
Preferred (monthly)
500. May 1 Holders of tee. Apr. 15
be. Mar. 15 Holders of reo. Mar. /
Preferred (monthly)
500. June 1 Holders of ree. May 15
Seaboard 011 Co.of Delaware (qua:.)...
Mar.31 Holders of roe. Mar. 14
100. Mar. 15 Holders of roe. Max. 1
Extra
81
Inter-Ocean Re-Insurance Co.(a-a)
Apr. 20 Holders of rec. Mar.31
intertype Corp.. 1st pref.(qua:.)
Apr. 1 Holders of rec. Mar. 15
$2
Sheaffer(W. A.) Pen, pref.(guar.)
$2
July 20 Holders of roe. June 30
$2
Preferred (guar.)
10o. Apr. 1 Holders of reo. Mar. 15
Irving Air Chute, corn. (guar.)
Oct. 20 Holders of rec. Sept.30
Jewel Tea Co., Inc., common (guar.).
Preferred (guar.)
- 750. Apr. 15 Holders of rec. Mar. 13
Jones, Laughlin Steel,7% sum. pt.(gn.) 250. Apr. 1 Holders of roe. Mar. 13
7%
Siemens & Halske (Berlin)
Mar. 15 Holders of rec. Feb. 28
30 Mar.31 Holders of rec. Mar. 10
Siscol Gold Mines
500
Katz Drug Co.. corn.(guar.)
.030. Mar.31
Sisool Gold Mines (guar.)
Preferred (guar.)
$131 Apr. 1 Holders of roe. Mar. 15
Keystone Watch Case Co
Slattery (E. J.) Co.. prof. (guar.)
83 1-3
134% Apr. 1 Holders of ree. Mar.18
Apr. 1
Kimberly-Clark Corp., pref. (guar.).- $134 Apr. 1 Holders of rec. Mar 13
$1
Smith (S. Morgan) Co.(guar.)
10e. Mar. 15 Holders of res. Feb. 17
250. Apr. 1 Holders of roe. Mar. 20
Klein (D. E.) Co., Inc.. oem.(qua:.)
Barony-Vacuum Corp. (guar.)
40o. Apr. 1 Holders of rec. Mar. 10
Koppers Gas & Coke Co., pre.(qua:.)
6131 Apr. 1 Holders of rec. Mar. 11
South Porto Rico Sugar Co., corn.(QUO 2% Apr. 1 Holders of rec. Mar. 10
Kroger Grocery & BakingPreferred (guar.)
% 2nd preferred (guar.)
.15
1
150 Mar.31 Holders of rec. Mar.
Spencer Kellogg & Sons,Ino.(guar.).
% May 1 Holders of reo. Apr. 20
250. Apr. 1 Holders of rec. Mar.e8
1500. Mar.15 Holders of rec. Mar, 1
Lake Shore Mines, Ltd. (guar.)
Standard Brands, Inc., corn.(guar.)
InkeView&Star Co (London)
1231%
$134 Apr. 1 Holders of roe. Mar. 6
$7 preferred (guar.)
I
Landis Machine. prof. (guar.)
Standard-Coosa-Thatcher 7% pt. (qu.)% Apr. 15 Holders of rec. Apr. 15
111% Mar. 15 Holders of reo. Mar. 5
134% June 15 Holders of reo. June 6
Standard 011 Co.of Calif.(qu.)
tekr. Mar. 15 Holders of roe. Feb. 16
Preferred (guar.)
260. Mar.15 Holders of roe. Feb. 15
Standard 011 of Ind.(guar.)
Lehigh Portland Cement Co.. pf.(qu.).. 87310. Apr. 1 Holders of rec. Mar. 14
Mar.31 Holders of coo. Mar. 15
600. Apr. 5 Holders of roe. Mar. 21
Lehman Corp., cap. stock (quer.)
Standard 011 of Kentucky (guar.)
25e
Liggett & Myers Tobacco, pref. (guar.)- $134 Apr. 1 Holders of rec. Mar. 10
25e. Mar.20 Holders of rec. Feb. 25
Standard Oil Co. of Nebraska (qua:.)...
Standard 011 Co.of N. J.(825 par)(go.) 250. Mar. 15 Holders of roe. Feb. 15
Lily-Tulip Cup Corp., corn. (guar.) - 3731e. Mar.15 Holders of rec. Mar. 1
Mar,15 Holders of rec. Feb. 15
60e. May 1 Holders of roe. Apr. 25
$100 par (guar.)
Lincoln National Lite Ina. Co.cap.stook
$1
600. Aug. 1 Holders of roe. July 28
$131 Apr. 1 Holders of rec. Mar. 16
Stein (A.) & Co., pref.(guar.)
Capital stook
Sun 011 Co., Isom. (guar.)
70e. Nov. 1 Holders of rec. Oct. 26
25e. Mar.15 Holders of res. Feb. 26
Capital stook
1734e. Mar.20 Holders of roe. Mar. 11
Lindsay Light Co., pref.(qua:.)
500 Mar. 31 Holders of rec. Mar. 10
Taoony Palmyra Bridge Co.. corn.(go,).
33 1-3o Mar.31 Holders of rec. Mar.31
Class A (guar.)
50e Mar.31 Holders of roe. Mar. 10
Lock Joint Pipe (monthly)
Apr. 1 Holders of rec. Apr. 1
82
Preferred (guar.)
250 Apr. 1 Holders of roe. Mar. 3
Texas Corp. (guar.)
$2
July 1 Holders of reo. July 1
Texas Gulf Sulphur Co., cap. stk. (g11.)25e. Mar.lb Holders of rec. Mar. 1
Preferred (guar.)
Mar.31 Holders of roe. Mar. 10
Mar.31 Holders of rec. Mar. 15
250
Texas Oil & Land Co., WEIL (qUar•)-- - 250
Loew's. Inc., corn. (qua:.)
Mar.20 Holders of roe. Mar. 6
Todd Shipyards Corp. (guar.)
$231 Apr. 1 Holders of rec. Mar. 17
25e
Lord & Taylor (guar.)
30e. Apr. 1 Holders of rec. Mar. 15
Trico Products Corp.(qua?.)
(P.) Co., corn.(guar.)
62310. Apr. 1 Holders of rec. Mar. 10
Lorillard
100. Mar. 15
20th Century Fixed Trust Shs.ser. B(s-a)
Preferred (quer.)
134% Apr. 1 Holders of roe. Mar. 15
3e. Apr. 20 Holders of roe. Apr. 10
Underwood Elliott Fisher Co.oom.(gu.)- 12310 Mar.31 Holders of roe. Mar. ha
Lucky Tiger Comb.Gold Mfg Co.(on.)
Mar. 31 Holders of rec. Mar. 110
81% Apr. 1 Holders of no. Mar.22
$131
Lunkenheimer Co.,pref.(guar.)
Preferred (guar.)
% Mar. 31 Holders of rec. Mar. 20
Union Twist Drill Co., preferred (guar.).
$1% July 1 Holders of no. June 21
Preferred (guar.)
$1% Oct 2 Holders of roe. Sept.22
United Aircraft & Triursp. Corp. pf.(q11.) 750. Apr. 1 Holders of rec. Mar. 10
Preferred(guar.)
2.5c Apr. 1 Holders of roe. Mar. 3
Union Carbide & Carbon Corp
Magnin (I.) & Co.. 8% prof. (qua:.)... 114% May 15 Holders of roe. May 5
131% Aug. 15 Holders of rec. Aug. 6
100 Mar.24 Holders of roe. Mar. 9
United Elastic Corp
6% preferred (guar.)
131% Nov.16 Holders of rect. Nov. 6
50e. Apr. 1 Holders of rec. Mar. 26
United Fruit Co
8% preferred (guar.)
Apr. 1 Holders of roe. Mar. 10
United Piece Dye Works 631% Pt.(qu.)-, 134% Apr. 1 Holders of Teo. Mar. 20
Mapes Consolidated Mfg. Co. (guar.)._ 750
200. Mar.31 Holders of roe. Mar. la United Profit Sharing Corp.eaP.stk.(s-a)1 5% Apr. 29 Holders of reo. Mar. 316
Marine Midland Corp.(guar.)
1700
Financial Chronicle
Per
When
Share. Payable.
Name of Company.
Books Closed
Days Inclusive.
March 11 1933
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. We give the
statement below in full:
Miscellaneous (Concluded).
United States Foil Co.,corn. A dr B
50. Apr. 1 Holders of roe. Mar.15a
Preferred (guar.)
$1% Apr. 1 Holders of rec. Mar. 15a STATEMENT OF MEMBERS OF THE NEW
YORK CLEARING HOUSE
United States Gypsum (qar.)
Apr. .1 Holders of rec. Mar. 15
250
ASSOCIATION FOR THE WEEK ENDED SATURDAY, MARCH 4 1933.
U.S.Pipe & Fotuidry Co.. corn.(riar.). 12%c. Apr. 20 Holders of rec. Mar.81
Common (quar.)
12%0. July 20 Holders of roe. June 30
Common (quar.)
12340. Oct. 20 Holders of roe. Sept.30
*Surplus and Nes Demand
Time
Common (quar.)
12340. 1-20-34 Holders of roe. Dec. 30
Clearing House
• Capital.
Undivided
Deposits.
Deposits.
1st preferred (guar.)
300. Apr. 20 Holders of roe. Mar.31
Members.
Profits.
Average.
Average.
let preferred (guar.)
300. July 20 Holders of rec. June 30
1st preferred (quar.)
300. Oct. 20 Holders of rec. Sept.30
$
$
$
g
let preferred (quar.)
300. 1-20-34 Holders of roe. Dee. 30
Bank of N.Y.& Tr. Co_
6,000,000
9,219,800
77,086,000
10,288,000
United States Tobacco Co., corn.(guar.) 81.10 Apr. 1 Holders of rec. Mar. 13
Bank of Manhattan Co_20.000.000
36.889,200
217,605,000
33,664,000
Preferred (Misr.)
Apr. 1 Holders of rec. Mar. 13
National City Bank_ _-_ 124.000,000
%
81,454,100 R833,612,000 172,749,000
United Stores Corp. pref.(guar.)
81%0 Ma,.15 Holders of rec. Feb. 24
Chemical Bk.& Tr.Co__ x20.000.000 x46,652,600
223,526,000
25,532,000
United States Playing Card Co.(qua,.)..
250. Apr. 1 Holders of rec. Mar. 21
Guaranty Trust Co
90.000.000 181,233,500 6789,940,000
47,908,000
Victor Monaghan Co. pref.(quar.)
$1% Apr. 1 Holders of rec. Mar.20
Manufacturers Tr. Co
32,935,000
20,297.600
214,026,000
93,904,000
Viking Pump Co. pref.(quar.)
600. Mar.15 Holders ot rec. Mar. 1
Cent. Hanover Bk.&Tr_
21,000,000
69.031,200
436,356,000
52,912,000
Vortex CuO Co ,common (oliar.)
Apr. 1 Holders of rec. Mar. 15
25c
Corn Exch. Bk.Tr. Co
15.000,000
22.550,000
177,924,000
20,207,000
Class A (quar.)
62%0 Apr. 1 Holders of rec. Mar. 15
First National Bank
10,000,000
81,483,400
291,595,000
21,955,000
Vulcan Detinning Co., pref. (quar.)-- - 134% Apr. 20 Holders of roe. Apr. 7s Irving Trust Co
50.000.000
62,412,100
271,577,000
47,332,000
Wagner Electric Co., Prof. (quar.)
Apr. 1 Holders of rec. Mar.20
1%
Continental Bk.&'rr.Co
4.000,000
5,756.000
19,419,000
2,313,000
Waldorf System,Inc., corn.(guar.)
250. Apr. 1 Holders of rec. Mar.20
Chase National Bank_. 148,000,000 111,132,900 01,069,451,000
107,558,000
Walker (H.) Goodarham &Worts pf.(qu.)
25c. Mar. 15 Holders of roe. Feb. 24
Fifth Avenue Bank
500,000
3,673.000
37,283,000
2,959,000
Wellington 011 Co.. Ltd.(quar.)
2e Mar, 15 Holders of roe. Feb. 28
Bankers frost Co
25,000,000
77.136.100 d472,902,000
54,172,000
Wesson 011&Snowdrift
12 Mc Apr. 1 Holders of rec. Mar. 15
Title Guar.& Trust Co
10.000,000
20,467,100
24,456,000
346,000
Western Canada Flour Mills Co., Ltd.
Marine Midland Tr. Co_
10.000.000
5.546,200
37,083,000
5,295,000
6% preferred (guar.)
750
Mar. 15 Holders of rec. Feb. 28
Lawyers Trust Co
3,000.000
2,116,600
8,455,090
1,151,000
Western Maryland Dairy Corp. Pt.(qu.) $13.5
Apr. 1 Holders of rec. Mar. 20
New York Trust Co_ _ _ _
12,500.000
22.019.400
170,075,000
17,337,000
634% preferred (guar.)
75c. Mar. 15 Holders of roe. Feb. 28
Com'll Nat.Bk.& Tr.Co.
7.000,000
8,653,000
40,456,000
2,339,000
Westinghouse Air Brake CO. (guar.)._
250 Apr. 29 Holders of rec. Mar.31
Harriman N.B.& Tr.Co
2.000.000
941.000
19,577,000
Westmoreland, Inc. (quar.)
5,102,000
300
Apr. 1 Holders of rec. Mar. 15
Public Nat.Bk.& Tr.Co.
8,250,000
4.406.700
30,720,000
27,426,000
White Rock Mineral Springs CO.
Common (quar.)
500. Apr. 1 Holders of roe. Mar. 17
Total
619.185.000 873.071 400 5 463 124 nnn 759 Ada ma
First preferred (quar.)
134% Apr. 1 Holders of rect. Mar. 17
Second preferred (guar.)
• As per official reports: National, Dec. 31 1932; State, Dec. 31 1932; Trust
Apr. 1 Holdeer of rec. Mar. 17
.8231
Whitman (Wm.) Co., Inc.. pref.(qu.) half( Mar.15 Holders of roe. Mar. 1
Companies, Dec. 31 1932. x As of Jan. 18 1933.
Will & Boutner Candle Co., Inc. Pf. (911.) $2
Apr. 1 Holders of rec. Mar.15
Includes deposits In foreign branches as follows: (a) $190,018,000:(b)848,014,000;
Winstead Hosiery Co.
(guar.)
$134 May 1 Holders of roe. Apr. 16
(0) $63,573,000; (d) $30,051,000.
Quarterly
$134 Aug. 1 Holders of rec. July 15
Quarterly
$134 Nov. 1 Holders of rec. Oct. 15
The New York "Times" publishes regularly each week
Wiser Oil Co.(quar.)
250 Apr. 1 Holders of rec. Mar. 11
Quarterly
250 July 1 Holders a rec. June 10
returns of a number of banks and trust companies which are
Quarterly
• 250 Oct. 2 Holders of rec. Sept.12
Quarterly
not members of the New York Clearing House. The Public
25o Jan2'34 Holders of rec. Des. 12
Wrigley(Wm.) Jr. Co.(monthly)
250. Apr. 1 Holders of rec. Mar.20
National Bank & Trust Co. and Manufacturers Trust Co.,
Monthly •
25o. May 1 Holders of roe. Apr. 20
Yale & Towne Mfg
150 Apr. 1 Holders of rec. Mar. 20
having been admitted to membership in the New York
t The New York Stook Exchange has ruled that stock will not be quoted exClearing House Association on Dec. 11 1930, now report
dividend on this date and not until further notice.
The New York Curb Exchange Association has ruled that stock will not be weekly to the Association and
the returns of these two banks
quoted ex dividend on this date and not until further notice.
a Transfer books not closed for this dividend.
are therefore no longer shown below. The following are
d Correction. e Payable in stock.
IPayable In common stock. g Payable in scrip. h On account of accumulated the figures for the week ended March 3:
dividends. J Payable in preferred stock.
n Meteor Motor Car Co. dividends cover first half of this year and are payable INSTITUTIONS NOT IN THE CLEARING HOUSE WITH THE CLOSING
the same dates in order to save postage.
OF BUSINESS FOR THE WEEK ENDED FRIDAY, MARCH 3 1933.
o Westinghouse Electric & hlfg. distribution of 34 share of Radio Corp. of America
NATIONAL BANKS
-AVERAGE FIGURES.
stook for each share held. Preferred stockholders have option of receiving $3.50
in Cash in lieu of above. Dividend including the optional feature, constitutes to
preferred holders full payment of preferential dividend for 1933.
Loans,
Res. Dep., Dep. Other
z• Govt. Gold Mining Areas Cons. Ltd. div. is based on Union of So. Africa curDisc. and
Cash.
N. Y. and Banks and
010,8
rency.
Investments,
Elsewhere. Trust Cos. Deposits.
q Wisconsin Power & Light have rescinded their recent declaration of preferred
dividends and have deferred action until existing conditions are clarified.
Manhattan$
$
$
3
$
s White Rock Mineral Springs 2d pref. stock pays $2.50 per snare on 859 sharer,
16,946,500
- Grace National
165,600 1,913,400 1,729,700 16,634,800
equivalent to 50c. per share on 4,295 shares of common stock for which the 2d pref.
may be exchanged, and payable on the equivalent number of common If so exchanged
Brooklyn
before the record date.
Peoples National_ _
5,370,000
80,000
319,000
42,000 4,737,000
r In view of existing conditions action on dividends is being deferred.
:Payable in Canadian funds.
a Payable in United States funds.
TRUST COMPANIES
-AVERAGE FIGURES.
VA unit.
as Less deduction for expenses of depositary.
y A deduction has been made for expenses.
Loans,
Res. Dep., Dep. Other
•Le ,,tax.
Disc. and
Cash.
N. 5', and Banks and
Gross
Investments.
Eleehwere. Trust Cos. Deposits
klanhattan-Weekly Return of New York City Clearing House.
$
$
$
$
$
County
19,999,400 2,143,700 1,986,800
18,840,000
Beginning with March 31 1928, the New York City Clearing Empire
47,964,700 *2,402,800 6,862,300 2,267,100 49,049,500
Federation
5,707,576
35,310
403,741
539,059 5,166,111
House Association discontinued giving out all statements Fiduciary
7,536,088 *3,041,214
861,733
24,000 9,827,591
18,188,800 *2,373,400
592,700
previously issued and now make only the barest kind of Fulton
489,400 17,060,300
United States
82,127,749 6,769,318 20,602,582
65,559,436
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
Brooklyn
Brooklyn
Kings County
83,146,000 3,455,000 30,745,000
351,000 102,445,000
23.332.378 1.018.493 7 701 (17,1
9il 4119 osa
*Includes amount with Federal Reserve as follows: Empire, 81,182,600;
Fiduciary.
$2,571.435; Fulton. 52,194.500.
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 Mar. 8 1933, in
comparison with the previous week and the corresponding date last year:
RIGTOU7CesGold with Federal Reserve Agent
Gold redemp.fund with U.S.Treasury_
Mar. 8 1933. Mar. 1 1933. Mar. 9 1932.
403,446,000
45,248,000
436,117.000
24.378.000
448,217,000
11,030,000
448,694,000
20,950.000
227,967.000
460.495,000
122,667.000
127.702.000
459,247.000
120,225,000
321,743,000
Total gold reserves
697,611,000
710,884.000
901,215,000
Reserves other than gold
37,988.000
62.072.000
772.938.000
17.616.000
955.095.000
21,044,000
619,949,000
152,813,000
218.548,000
62.069,000
92,875,000
44,601,000
772,762,000
79,636,000
280.617.000
89,262.000
137,476,000
58,363,000
126,338,000
141,926,000
171,786.000
162.077,000
114,444,000
39,416,000
Afar. 8 1933. Mar. 1 1933. Mar. 9 1932
3
$
5
'53,880,000
735,599.000
11,063,000
Resources (Concluded)Gold held abroao
Due from foreign banks (see note)
Federal Reserve notes of other banks.-Uncollected items
Bank premises
All other resources
Gold held exclusively eget. F. R.notes
Gold settlement fund with F. R. Board.
Goldand gold certificates held by bank.
Total reserves
Non-reserve cash
Bills discounted:
Secured by U. S. Govt. obligationa_
Other bills discounted
Total bills discounted
Bills bought in open market
U. 8. Government securities:
Bonds
Treasury notes
Special Treasury certificates
Certificates and bills
Total U.S. Government securities__
Other securities (see note)
Foreign loans on gold
Deduct hills rediscounted with other
Federal Reserve banks
Total resources
1,395,000
2,455,000
151,125,000
12,818,000
27,905,000
1,295.000
2.880,000
139,026,000
12.818,000
28.394.000
3,070,000.
3,824.000108,926,000.
14,817,000
15,042.000
2,105,272,000 1,069,446,000 1,645.314,000.
LtablIftfes-
247,147,000
286.548.000
165,644,000
515,411,000
5,103,000
620.411.000
4.191.000
319,504,000
8,153,000
Fed. Reserve notes in actual circulation.
Deposits-Member bank reserve mot-Government
Foreign bank (see note)
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
Total liabilities
969,626,000
758,171,000
11,007,000
19,655,000
18,069,000
798,264,000
837,677,000
24,624,000
12.436,000
15,152,000
564.536,000
804,502,000.
17,302,000
2,342,0008,260,000.
806,902,000
889,880,000
832,406,000
179,381,000
58,403,000
85,058,000
5,902,000
132,573.000
58.409,000
85.058.000
5,253.000
104,306,000
59.471,000
75,077,000
9,518,000
2 105,272,000 1,969,446,000 1,645.314,000
Ratio of total reserves to deposit and
Fed. Reserve note liabilities combined
41.4%
45.8%
68.4%
Contingent !lability on bills purchased
Total bills and seenritles (see note)._ 1,162,912,000 994.481.000 523,496.000
for foreign correspondents
8,081.000
9.428.000 103,891.000
NOTE.
-Beginning with the statement of oct. 17 1925, two new Items were added In order to show separately the amount of balances
due to foreign correspondents. In addition, the caption "All other earnings assets,' previously made up of Federal Intermediate Credit Bank held abroad and amounts.
debentures,
to "Other securities, and the Caption. "Total earnings assets" to "Total bills and securities." The latter term was adopted ass more accurate descriptionwas changed
of the total'
of the discount acceptances and securities acquired under the provisions of Section 13 and 14 of tile Federal Reserve Act, which It was stated are the only Items included
therein.
210,000.000
1701
Financial Chronicle
Volume 136
Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon, Mar.9,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 1641, 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 MAR. 8 1933.
1933. Mar. 9 1932.
Mar. 8 1933. Mar. 1 1933. Feb. 21 1933. Feb. 15 1933 Feb. 8 1933. Feb. 1 1933. Jan. 25 1933. Jan. 18
S
S
$
$
$
$
5
$
RESOURCES.
$
2.092,347,000
Gold with Federal Reserve agents
1,931,656,000 2,180,967.000 2,367,987,000 2,447.357,000 2,469,982,000 2,414,852,000 2,390,103,000 2.377.803,000
53,834,000
39,233,000
37.736,000
37,148,000
35,744,000
44,596,000
48,756,000
Gold redemption fund with U.S. Treas._ 138,309,000
87,495.000
2,146,181,000
Gold held exclusively agst. F. R. notes 2,069,965.000 2,268,462,000 2,416,743.000 2,491,953,000 2,505.726,000 2,452,000,000 2.427,839.000 2,417,036,000
322.321,000
Gold settlement fund with F. R.Board
278.547,000 385,672,000 437,943,000 363,030,000 397.699,000 427,415,000 432,095,000 408,070,000 490,918,000
Gold and gold certificates held by banks. 335,027,000 237.949,000 263,707.000 345,175,000 343,699,000 375,759,000 398.767,000 411.335,000
3.236,441,000 2,959,420,000
Total gold reserves
2,683,539,000 2.892,083,000 3,118,393,000 3,200,158,000 3,247,124,000 3.255.174.000 3,258.701,000
201,413,000 201,498.000 198,238,000 207,869,000
Reserves other than gold
125,432,000 174,454,000 186,251,000 187,225.000 195.227,000
Total reserves
2,808,971,000 3,066,537.000 3,304,644,000 3.387,383.000 3.442,351.000 3,456.587.000 3,460.199.000 3,434,679,000 3,167.289,000
Non-reserve cash
Bills discounted:
Secured by U. B. Govt. obligations
Other bills discounted
Total bills discounted
Bills bought in open market
U. S. Government securities:
Bonds
Treasury notes
Special Treasury certificates
Certificates and bills
Total U. S. Government securities
Other securities
Foreign loans on gold
Total bills and securities
Gold held abroad
Due from foreign banks
Federal Reserve notes of other banks...
Uncollected items
Bank premises
All other resources
Total resources
LIABILITIES.
F. R. notes in actual circulation
Deposits:
' Member banks—reserve account
Government
Foreign banks
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
Total liabilities
Ratio of gold reserve to deposits and
• F. R. note liabilities combined
Ratio of total reserves to deposits and
F. It. note liabilities combined
Rediscounts between Federal Reserve
banks
Contingent liability on bills purchased
for foreign correspondents
Maturity Distribution of Bills and
Short-Term Securities
1-15 days bills discounted
16-30 days bills discounted
31-60 days bills discounted
61-90 days bills discounted
Over 90 days bills discounted
Total bills discounted
87.570,000
76,144,000
48,390,000
67,880,000
73,586,000
73.607.000
79,729,000
78.796,000
86,443,000
982,188,000
431,748,000
418,921,000
293,470,000
105.102,000
222,036,000
81,485,000
204.888.000
62,914,000
189.726,000
66.737,000
201,953.000
68,543,000
196,155,000
66.496.000 •397,340,000
182,172,000 350,639,000
1,413,936,000
712,391,000
747.979,000
327,138.000
286.373,000
252,640,000
268,690.000
264,698,000
248.668,000
417,289,000
383,666.000 *179,576.000
30.784,000
31,338,000
31,338,000
31,496.000
31.926,000
137,584.000
425,313,000
459,015,000
420,832,000
457,880,000
421,021,000
452,661,000
421,099,000 420,894,000
438,044,000 399,171,000
421.173.000
333,895.000
420,890,000
319.760,000
420,755,000
310,426.000
318,717,000
83.797,000
996,466,000
957.251.000
960.551.000
950,165,000
963.847,000 1.008,547.000 1,022,661,000 1,047.012.000
382,609,000
1.880.794,000 1.835.963.000 1.834.233,000 1.809.308,000 1.783.912.000 1,763.615,000 1,763,311,000 1,778.193.000
785,123,000
4.597,000
9,497,000
5,831,000
4.719.000
4.697,000
4.797.000
3.
435.000
3.415.000
4.526.000
3,717,850,000 2.936,739,000 *2345644,000 2.131.262,000 2.071.325.000 2.067.058,000 2,064,031,000 2,063,384.000 1,680,183,000
3,615,000
12,719,000
344,518,000
54,029,000
54,555,000
3.515,000
11,083.000
400,335.000
53.962,000
54.082.000
3,498.000
13,289,000
333,656,000
53,962.000
52,998,000
3,510,000
11,542.000
390,639,000
53.962,000
53,481,000
3,539,000
10,964,000
302.438,000
53.962.000
50,977,000
3,505,000
11,835,000
329,504,000
53,880,000
47,814.000
13,589.000
3,487,000
15,452,000
300.746.000
53.880.000
46.838,000
51.091.000
3.259.000
16,311.000
344,921,000
53,880.000
42,281,000
8,613,000
13,658.000
356,634,000
57,824,000
39,035,000
7.044,647,6006.594.133.000 *6181277,000 6,105.386,000 6.015.285.000 6.048.979,000 6,044,665.000 6.097,376.000 5,3994380,000
•
4,215,006,0003.579.522,000 3,000,248,000 2.1191.145,000 2.773.192.000 2,729,971,000 2.705,667,000 2,697,295.000 2,617,381,000
1,799.762,0002,038.228,000 2,271.129,000 2,236,095.000 2,419,399,000 2.437,705,000 2.513.199.000 2.545.151,000 1,909,586,000
47,107,000
17,842.000
12,811,000
27.766,000
40,729,000
51,542,000
12.128.000
36,520.000
37,643,000
13,464,000
20.539,000
41.056,000
33.640.000
59.422,000
44.930.000
60,799.000
37,542,000
49,175,000
19.001,000
24,340.000
27.594,000
49.240.000
26.741.000
28.704,000
23,213.000 27.972,000
64,642,000
1,951,222,000 2.157,190,000 2,399,398,000 2,375,783,000 2.499,670,000 2,539,739.000 2,587,244,000 2,607.872.000 1,989,158000
421,801.000
150,120.000
278,599,000
27,899,000
404,198,000 *331,695.000
150.303.000 150,474,000
278.599,000 278,599,000
24,321,000
20,863,000
388.938.000
150.916,000
278.599,000
20,025,000
292.664,000 329,894,000
151.034,000 151,086,000
278,599,000 278.599,000
20,126.000
19,690,000
301,658,000
151,201,000
278.599,000
20,296,000
343,716.000
151,288,000
278,599,000
18.606,000
347,564,000
156.385,000
259,421,000
29,471,000
7,044.647,0006.594.133,000 *6181277.000 6,105.386,000 6.015.285,0006.048.979.000 6.044,665,000 6.097.376.000 5,399,380,000
43.5%
50.4%
57.7%
45.6%
53.5%
61.2%
29.398,000
30.284.000
60.7%
64.3%
61.5%
61.7%
61.5%
61.0%
64.3%
65.3%
65.6%
55.4%
64.7%
68.8%
39.682.000
40.655,000
41,831.000
40.724.000
317.113,000
210,000,000
28,051,000
$
$
$
35.684,000
I
$
$
$
$
S
1,122,083,000
46,290,000
74,154,000
61,312,000
10,097,000
585,190.000
28.255.000
43.672.000
43.902,000
11,372.000
239,487,000
21.807,000
31,696.000
23,619,000
10,529,000
203,195,000
19,631,000
29,926.000
22.787,000
10,834,000
173,661 000
19,978,000
28.259,000
19.979,000
10,763,000
189,603,000
20.796.000
27.747.000
20,084,000
10,460,000
187,706.000
19.352.000
27,967,000
19,225.000
10.448,000
171.772.000
20.135.000
27,648.000
18.398.000
10.715.000
570,718,000
49,994,000
65,815,000
42,467,000
18.985,000
1,413,936,000
712.391.000
327,138.000
286,373.000
252,640.000
268,690.000
264.698.000
248.868.000
747.979,000
1-15 days bills bought In open market
16-30 dayabilis bought in open market_
31-60 days bills bought in ()Pon market..
61-90 days bills bought in open market..
Over 90 days bills bought In open market
88,645,000
62,215,000
123,946,000
141,262,000
1,221,000
68,122,000
75,533,000
110,198.000
128.883,000
930.000
59.312.000
30.319.000
35.753.000
48,441,000
211,000
6,407.000
8,411.000
5.799,000
10.167.000
7.581.000
8.733.000
5.148,000
9.876.000
7,184.000
5.020.000
8,654.000
10.480.000
4,746,000
6.864,000
9,302.000
10,584.000
5.161.000
6.637.000
10.157.000
9,971.000
64,075,000
27,862,000
11,409,000
33.987,000
251,000
'Total bills bought in open market....
417,289,000
383.666,000
174,076,000
30,784,000
31.338,000
31.338,000
31,496.000
31.926.000
137.584.000
1-15 days U. S. certificates and bills
16-30 days U. S. certificates and bills
31-60 days U.S. certificates and bills._
61-90 days U. S. certificates and bills
Over 90 days certificates and bills
146.786,000
58,750,000
204,117.000
144,945,000
441,868,000
141,231.000
33.750.000
89.601.000
215,697.000
476.972.000
89.950,000
138.686.000
92,250,000
197,797,000
441,868,000
89,950,000
169,301,000
63.250,000
174,497.000
453.167,000
73,550.000
50.000.000
203,031.000
203,897,000
433,369.000
82,800,000
89,950,000
203,031,000
203.897,000
428.869,000
72,975,000
73.550,000
249.282,000
57.250.00C
569.604.000
83.325,000
87,800.000
274.231,000
54.250.000
547.406.000
56.645,000
4,250,000
6,300,000
106,066,000
209,348,000
996,466,000
957.251.000
960.651.000
950.165.000
963.847,000 1,008,547.000 1,022,661,000 1,047,012.000
382,609,000
5,555,000
4,694.000
4,672.000
4,769.000
3.000
Total U. S. certificates and bills
1-15 days municipal warrants
16-30 days municipal warrants
31-60 days municipal warrants
61-90 days municipal warrants
Over 90 days municipal warrants
Total municipal warrants
-
51,000
25,000
5,631,000
---
3.397.000 ' 3.377,000
10.000
13.000
3,000
4.448.000
4.558.000
14.000
8.065,000
130,000
13,000
25,000
25.000
25,000
25.000
25,000
25.000
20,000
32,000
4.719.000
4.697.000
-=- —
4.797.000
3,435,000
3.415.000
4,526.000
4.597.000
8,247,000
25.000
Federal Reserve Notes—
Issued to F. It. Bank by F. R. Agent... 4,550,680,000 3.865,116.000 3.249.887,000 3,133.628.000 2.992.411.000 2.942,459.000 2.933,505.000 2,932.263.000 2.876.745,000
335,674,000 285.594.000 249,639.000 242.483,000 219,219,000 212.488,000 227.838.000 234.968.000 259,364,000
Held by Federal Reserve Bank
In actual circulation
—
=-
4,215,006,000 3.579.522.000 3.000.248,000 2,891,145,000 2.773,192,000 2,729.971.000 2.705,667.000 2.697.295.000 2,617,381,000
—
Collaterdl field by Agent as Security
for Notes Issued to Br:ra—
lly gold and gold certificates
Gold bind—Federal Reserve Board
By eligible paper
LI. S. Government securities
805,571,000 835,532.000 988,742,000 1,066.412.000 1.132,237.000 1.128.607.000 1.124.754,000 1.122.158.000 825,567,000
1,126,085,000 1.345.435.000 1,379.245.000 1.380.945,000 1.337.745.000 1.286,245.000 1.265.345.4100 1.255.645,000 1,266,780,000
1,754,975,000 1.032,589,000 435.547.000 265,334,000 235.255.000 250.763,000 249,096,000 233.636,000 847,479,000
886,400,000 661.900.000 473.700.000 445.100 000 316.200.000 306.800.000 325.600.000 354.600.000
Total
• Revised figures
4,573.031.000 3,875,456.000 3,277,234,000 3.157.791.000 3.021.437.000 2.972,415,000 2,964,799.000 2.966.039.000 2.939.826.004
1702
Financial Chronicle
March 11 1933
Weekly Return of the Federal Reserve Board (Concluded).
WEEKLY STATEMENT OF RESOURCES AND LIABILITIES OF EACH OF THE 12 FEDERAL RESERVE BANKS AT CLOSE OF BUSINEdS MAR,8 1933
Two Ciphers (00) omitted.
Federal Reserve Bank of—
Total.
Phila.
Boston. New York.
Cleveland. Richmond Atlanta.
III 411
Chicago. St. Louis. Minneap. Kan.City. Dallas. San Front
RESOURCES.
s
s
]old with Fed. Res. Agents-- 1,931,656,0 123,027,0
3old redm.fund with U.S.Treae. 138.309,0 4,617,0
403,446.0 110,500,0 166,470,0 104,795,0 69,170,0
45,248,0 10,313,0 13,455,0 5,101,0 3,855,0
$
8
$
$
$
$
491,235,0 101,535,0 50,690.0 96,280.0 62,245.0 162,263,0
35,216,0 1,770,0 2.787.0 3,827,0 1,205,0 10,915,0
Gold held excl.agst. F.R.notes 2,060,965,0 127.644,0
10ld settlen't fund with F.R.Bd 278,547,0 15,332,0
3018 3: gold ctfs. held by banks_ 335,027,0 17,173,0
448,694,0 120,813,0 179,925,0 109,896,0 73,025,0
20,950,0 19,125,0 28,868,0 14,545,0 17,794,0
227,967,0 8,149,0 17,590,0 3,426,0 4,351,0
526,451,0 103,305,0 53,477,0 100,107.0 53,450.0 173,178,0
57,891,0 25,011.0 13,062,0 17,961.0 25,536,0 22,472,0
17,341,0 1,253,0 1,182,0 6.630,0 2,895.0 27,070,0
697,611,0 148,087,0 226,383,0 127,867,0 95,170,0
601,683,0 129,569,0 67,721,0 124,698,0 81,881,0 222,720,0
Total gold reserves
2,683,539,0 160,149,0
3.eserves other than gold
Total reserves
125,432.0 13,847,0
2 808,971,0 173,996,0
Ion-reserve cash
311Is discounted:
Sec. by U.S. Govt.obllgatlons
Other bills discounted
'Total bills discounted
48,390,0
5
$
5
37,988,0 19,306.0
$
5,250,0
$
6,445,0
3,000,0
735.599,0 167,393,0 231,633,0 134,312,0 98,170,0
2,739,0
11,063.0
2,631,0
2.777,0
2,383,0
2,248.0
16,848,0
6,601,0
1,998.0
4,310,0
3,447,0
6,392,0
618,531,0 136,170,0 69,719,0 129,008,0 85,328,0 229,112,0
11,555,0
3,568,0
1,515,0
1,659,0
2,233,0
4,019,0
982,188,0 7,153,0
431,748.0 11.524,0
619,949,0 83,985,0 71,675,0 31,041,0 9,636,0
152,813,0 58,943,0 47,476,0 24,589,0 31,029,0
80,910,0 11.937,0 3,936,0 10.418,0
32,607.0 3,366,0 10,899,0 20,465,0
1,227,0 50,321,0
4,799,0 33.238,0
113,517,0 15,303,0 14,835,0 30,883,0
6,026,0 83.559,0
1,413,936,0 18,677,0
772,762,0 142,928,0 119,151,0 55,630,0 40,665,0
Ohs bought In open market
417,289,0 63,083,0
79,636,0 14,323,0 10.634,0 22,064,0 19,394,0
J. S. Government securities:
Bonds
Treasury notes
Certificates and bills
425,313,0 36,799,0
459.015,0 27,516,0
996,466,0 63,797.0
126.338,0 28,848,0 56,513,0 9,918,0 10,142,0
141,926,0 33,260.0 54,150,0 12,936.0 13,065,0
247,147,0 65,033.0 105.877,0 25,295,0 50,545,0
65.650,0 13,955,0 17.310,0 16,089,0 18,020.0 25,731,0
85,734.0 17,555,0 12,762.0 16.082,0 10,463.0 33,566,0
264,010,0 34,322,0 24,808,0 29,549.0 20,457,0 65,626,0
Total U.S. Govt.securities- 1,880,794,0 128,112,0
515,411,0 127,141,0 216,540,0 48,149.0 73,752,0
415,394,0 65,832,0 54,880.0 61,720,0 48,940.0 124.923,0
)ther securities
Mils rediscounted for, or with
(—).other F. R. banks
5,831,0
5,103,0
525.0
98,433,0 19,538,0 17,692,0
25,000,0
3,258,0 60,193,0
3,0
200,0
20,000,0 —210,000,0
9,041,0
150,000,0 15,000,0
Total bills and securities
3,717,850,0 229,872,0 1,162,912,0 284,917,0 371,325,0 125,843.0 134,011,0 777,344,0 115,673,0 87,410,0 101,644.0 58,224,0 268,675.0
}old held abroad_
)ue from foreign banks
3,615,0
269,0
1,395,0
10,0
388,0
348,0
137,0
123,0
15,0
102,0
480,0
102,0
246,6
red. Res. notes of other banks._
285,0
2.455,0
250,0
12,719,0
929,0
440,0
537,0
881,0
746.0
3,907,0 1,124,0
228,0
937.0
344,518,0 28,055,0 151,125,0 18,590,0 18,698,0 25.058,0 9,457,0
Yncolleoted items
21.049,0 27,005,0 8,659,0 12.667.0 9,017,0 15,
138.0
12,818.0 3,173,0 6,929,0 3,237,0 2,422,0
tank premises
54,029,0 3,280,0
7,595,0 3,285,0 1.746,0 3,559,0 1,741,0 4.244,0
27,905,0 4,504,0 2,248,0 3,158,0 5,368,0
III other resources
54,555,0 1,282.0
1,825.0 1,117,0 2,222,0 1.286,0 1,624,0 2,018.0
Total resources
7,044,647,0 439,778,0 2,105,272,0 481,846,0 634,887,0 295,007,0 252,545,0 1,442,286,0 287,957,0 171,721,0 250,462,0 158,497,0 524,389,0
LIABILITIES.
P. R.notes in actual circulation_ 4,215.008.0242.827,0
)eposits:
Member bank reserve account 1,799,762,0 124,130,0
Government
37,643,0
58,0
Foreign bank
49,175.0 3,236,0
Other deposits
64,642,0
56,0
Total deposits
kferred availability items
kwital paid in
lurplus
di other liabilities
Total liabilities
1,951,222,0
421,801,0
150,120,0
278,599.0
27,899,0
127,480,0
37,228,0
10,775,0
20,460,0
1,008,0
969,626,0 300,271,0 423,218,0 196,152,0 158,045,0 1,113,258,0 174,366,0 112,949,0 148,340,0 54,617,0 321,337,0
758.171,0 102,718,0 134,323,0 45,278,0 36,028,0
11,007,0
61,0
147,0
140,0 25,183.0
19,655,0 4,654,0 4,388,0 1,729,0 1.551,0
18,069,0
423,0 4,138,0 4.580,0 2,190,0
227,617,0 57,694,0 36,703,0 69,214,0 74,497.0 133,389,0
608,0
62,0
48.0
111.0
16.0
202,0
5,762.0 1,507.0
1,020.0
1,285,0
1,285,0 3,103,0
6,188,0 14,552,0 1,514,0 1,462.0
273.0 11,197.0
806,902,0
179,381,0
58,403,0
85,058,0
5,902,0
240,175.0 73,815,0 39,285,0 72,072,0 76,071,0 147,891,0
29,691.0 24,119,0 8.554,0 16,677.0 13,554.0 23,747,0
16,007,0 4,320,0 2,867.0 4,023.0 3,796,0 10,395,0
39,497,0 10,186,0 7,019,0 8,263,0 8,719.0 19,701,0
3,658,0 1,151,0
1,047,0 1,087,0 1,740,0 1,318.0
107,856.0
28,026,0
15,845,0
29,242,0
606,0
142.996,0 51,727,0 64,952,0
24.404,0 24,927,0 11,493,0
13,934,0 5,135,0 4,620,0
28,294.0 11,616,0 10,544,0
2,041,0 5,450,0 2,891.0
7,044,647,0 439,778,0 2,105,272,0 481,846,0 634.887,0 295,007,0 252,545,0 1,442,286,0 287.957,0 171,721,0 250,462,0 158,497,0 524,389,0
Memoranda.
Legere)ratio (percent)
Iontingent liability on bills purchased for for'n correspondents
45.6
47.0
41.1
41.0
40.9
54.2
44.0
45.7
54.9
45.8
58.5
65.3
48.8
28,051,0
2,189,0
8,081,0
3,148,0
2,968,0
1,169,0
1,050,0
3,898,9
1,019,0
690,0
870,0
870,0
2.099.0
FEDERAL RESERVE NOTE STATEMENT.
Federal Reserve Agent at—
Total.
Boston. New York, Phila.
Cleveland. Richmond Atlanta.
Chicago. Si. Louis. Minneap. Kan.Citg. Dallas. &arras.
Two Ciphers (00) omitted.
$
8
1
$
$
8
$
$
1
3
$
s
$
Federal Reserve notes:
Issued to F.R.Bk.by F.R.Agt. 4,550,680,0 267,175,0 1,069,309,0 313,867,0 434,762,0 206.118,0 190,854,0 1,159,058,0 180,268,0 115,493,0 173,036,0 61,761,0 378,979,0
Held by Fed'! Reserve Bads. 335,674,0 24,348,0
99,683,0 13,596,0 11,544.0 9.966,0 32,809,0
45,800,0 5,902,0 2,644,0 24,896,0 7,144,0 57,642.0
In actual circulation
4.215.006,0242,827,0
Collateral held by Agent as security for notes issued to Us:
805,571,0 47,010,0
Gold and gold certificates
1,126,085,0 76,017,0
Gold fund—F.R. Board
1,754,975.0 99,137,0
Eligible paper
888,400,0 47,000,0
U.S. Government securities
969,626,0 300,271,0 423,218,0 196,152,0 158,045,0 1,113,258,0 174,366,0 112,949,0 148,340,0 54,617,0 321,337,0
138,446,0 74,700,0 74,470,0
265,000,0 3.5,800,0 92,000,0
625.270,0 144,870,0 152,179,0
41,000,0 62,000,0 120.000,0
37,790,0
67,005,0
75,798,0
26,000,0
20,170,0
49,000,0
51,803,0
73,500,0
274,235,0
217,000,0
357,402,0
312.000,0
4.573.031.0 269.164.0 1.069.718.0 317 37n n 4213 0400 908 522 n 104 472 0 1 100 f127 11
Total collateral
24,835,0
76,700,0
45,598,0
34,000,0
101
16,190,0
34,500,0
30,783,0
37.900,0
122 0 110 272 n
10,480,0 15,245,0 72,000,0
85,800,0 37,000.0 90,263,0
33,143,0 8,138,0 130,854,0
45,000,0 2,000,0 86,000,0
174 401 n
no
non n 012 117 II
Weekly Return for the Member Banks of the Federal Reserve System.
Following is the weekly statement issued by the Federal Reserve Board, giving the principal items of the resources
and liabilities of the reporting member banks from which weekly 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. 14 1917, published in the "Chronicle" of Dec. 29 1917, pages 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 1641, immediately preceding which we also give the figures of New York and Chicago reporting member banks for a week later.
Beginning with the statement of Jan. 9 1929. the loan figures exclude "Acceptances of other banks and bills of exchange or drafts sold with endorsement" and Include
all real estate mortgages and Mortgage loans held by the bank. Previously acceptances of other banks and bills sold with endorsement were Included with loans, and some
of the banks included mortgages in Investments. Loans secured by U. S. Government obligations are no longer shown separately, only the total of loans on securities
being given. Furthermore, borrowing at the Federal Reserve is not any more subdivided to show the amount secured by U.S. obligations and those secured by eommerda
paper, only a lump total being given. The number of reporting banks is now omitted; In its place the number of cities included (then 101), was for a time given, but twin
nine OM.9 1929 even this has been omitted. The figures have also been revised to exclude a bank in the San Francisco district with loans and investments of 2135,000,000
on Jan.2 1929. which had then recently merged with a non-member bank. The figures are now given in round millions Instead of in thousands.
PRINCIPAL RESOURCES AND LIABILITIES OF WEEKLY REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE OF
BUSINESS MAR, I 1933 (In millions of dollars).
Federal Reserve District—
Loans and investments—total
Loans—total
On securities
All other
Investments—total
U.S. Government securities
Other securities
Reserve with F. R. Bank
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
linernorinva from F R Bank
Total.
Boston. New York
Phila.
Cleveland. Richmond Atlanta. Chicago. St. Louis.
$
17,823
$
1.159
$
7.486
5
1,063
$
1,787
557
9,627
672
3,653
568
1,025
4,234
5,393
271
401
1,884
1,769
289
279
472
553
8,196
487
3,833
495
•762
4,908
3,288
297
190
2,493
1,340
239
256
449
313
1,599
389
114
21
729
106
67
17
10,593
5,288
90
736
390
3
5,422
1,187
38
866
2,199
99
139
400
1
$
minnetap. Ran.City.
$
Dallas. San Pram.
491
$
$
1.960
493
290
496
357
$
1,684
289
310
1.303
260
167
225
214
941
107
182
107
203
571
732
106
154
52
115
75
150
88
146
232
709
268
181
657
233
123
271
143
743
161
107
100
81
341
316
116
117
59
64
152
119
89
54
412
331
76
38
48
30
21
9
282
99
52
14
27
6
58
16
47
10
80
24
587
271
8
735
711
9
260
218
3
192
192
7
1,171
809
8
287
173
1
145
140
329
171
2
221
128
3
508
898
98
947
56
129
47
137
43
72
45
62
141
241
45
77
46
50
90
134
87
78
89
133
217
80
R3
27
18
24
2
1
A
I
fie
$
$
$
s
Volume 136
Financial Chronicle
1703
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
We are obliged to omit our customary elaborate tables of prices
for the New York Stock Exchange, the New York Curb Exchange,
the New York Produce Exchange and the various outside Stock
Exchanges, as all these Exchanges have been closed owing to the
banking holidays imposed by proclamations. The New York
Stock Exchange closed down beginning with last Saturday and
most of the other Exchanges closed beginning with the same
day. Some, like the Detroit Stock Exchange, closed much earlier.
The Canadian Exchanges remained open, and we furnish below
the week's record for the Toronto Stock Exchange and the
Toronto Curb Market.
Low.
High.
1
734
17
26
100 12734
100
100
100
100
100
100 161
•No par value.
80
125
135
140
160
246
129
160
1274
137
141
165
248
130
165
13634 13634
80
83
90
90
Jan
Jan
Jan
Jan
Feb
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Mar
Jan
Jan
Mar
Feb
Feb
1734 Feb
Mar
8
Jan
Mar
1 ,iit Feb
Mar 91
Jan
Feb
234 Jan
Mar
2% Jan
Mar
3
Feb
Mar
8 ,: Jan
Jan 100.-.. Mar
Mar 1034 Feb
Jan 40
Mar
Mar
12
Feb
Mar 1134 Feb
Mar
334 Jan
Mar
7
Jan
Mar 79 I Jan
5
40
8%
71
6
1494
25
35
4
994
1834
2
5
Mar
Mar
Niar
Mar
Mar
Feb
Mar
Mar
Mar
Nlar
Jan
Mar
Mar
.WM1
*
Loan and Trust
Canada Permanent_ _100
Huron & Erie Mortgage.100
Toronto Mortgage
MI
5.11
49
834
71
734
17
26
35
53.4
934
19
2
5
Slat
134
Mar 2034
Mar
33.4
Mar
534
Jan 55
Mar
4
Jan
1234
Mar 133.4
Mar 5634
Mar
2
Mar
10
Feb
1634
Feb
434
Jan
334
Mar 68
Jan 180
Feb 4734
1234
6
%
8334
134
2
2
434
98
8%
36
1034
1034
234
534
70
.10.
--
534
994
5
40
834
71
7
143.4
25
35
4
994
19
2
5
1%
15
234
434
5034
..,
10
10
523.4
134
634
934
334
2
54
170
4634
tJan 23% Mar
Feb 100
Jan
Mar 10
Jan
Feb
174 Mar
Mar 28
Jan
V°00.0VN0V000
MCNc.N.0
Ov....C.0
N*0
.ON000NN
...
0
..,
11
1034
3
ooyo.. oo.cl00000.owomx-wo
BankCommerce
Dominion
Imperial
Montreal
Nova Scotia
Royal
Toronto
99
93.4
1534
634
3i
8434
134
2
234
5
99
034
39%
1134
1034
334
5%
72
a
- -; a
Ont Equit Life 10% p11_100
Page-ilersey Tubes com •
Photo Engravers & Elee_ •
Penman's Ltd pref
Simpson's Ltd pref.-__I00
Steel Co. of Canada com_ _•
Preferred
25
Tip Top Tailors pref.. 100
Walkers (Hiram) com___.•
Preferred
•
Wanton Ltd (Geo)
Winnipeg Electric corn_ •
Preferred
100
8334
134
2
1334
6
%
8334
13.4
2
234
434
99
8%
39
1034
1034
294
534
70
...7
1534
634
203
80
7%
143
20
OC.0N000000000000
04.00.C.N=0.000*N0N
.
0N. C.
t.
.. .0°.
Dominion Stores corn_..-•
Ford Co of Canada A----•
General Steel Wares coin •
Goodyear T & Rub pref 100
Gypsum Lime & Alabast _•
Ham United Theat com_25
Preferred
100
Hunts Ltd A
•
Internatl Mill 1st pref__100
Internatl Nickel coin____ •
Laura Secord Candy com.•
Loblaw Groceteriaa A_ ___*
B
•
•
Massey-Harris corn
Moore Corp corn
•
100
A
a
13.4
15
3
6
52
334
1034
10
53
134
7
113.4
434
3.„
66
180
47_
N0.00..00.
.
.M
.
V..
134
15
234
434
52
3
1034
10
5234
1%
674
10
1134
434
334
3
234
6434 54
179
47
3
5
00NN
NN
Canada Bread corn
*
Canada Cement pref.
*
Canadian Canners corn......'
Convertible preferred_ •
let preferred
100
Canadian Car & Fdy corn__
Preferred
25
Can Dredging & Dk corn..
Can Gen Elea pref
50
Can Indust Alcohol A__._.
Canadian Oil corn
Canadian Pacific Ry-_25
Cockshutt Plow co m _ _ _•
.
Consolidated Bakeries...'
Cons kiln ddSmeltIng_ _25
Consumers Gas
100
Cos Hos Imp kilns pref.100
M
23%
90
85
17%
223.4
-;
89
8%
173.(
221.4
233
834
7%
17%
20
0..0
N0..
Alberta Pac Grain pref_100
Bell Telephone
100
Brazilian T L & Pow com.•
BC Power A
•
Burt(F N)Co. corn..-25
534
5334
934
71
12
17
27
35
53.4
994
2034
334
5
125
135
140
160
246
129
160
Mar
Mar
Mar
Star
Mar
Niar
Nlar
132
80
90
Feb 153
Mar 102
Mar 9834
140
138
158
189
263
143
172
Slat
Jan
Jan
Mar
Jan
Mar
Jan
Star
Feb
Feb
Feb
Jan
Mar
aid
,t
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Toronto Curb.
-Record of transactions at the Toronto
Curb, March 4 to March 10, both inclusive, compiled from
official sales lists:
Can Bud Breweries com •
Canada Malting Co
•
Canada Vinegars corn.. _ _*
Canadian Wineries
•
Consolidated Press A_ _ _.*
Distillers Corp Seagrams-•
Dominion Bridge
•
Dom Motors of Canada_10
Dons Tar & Chem pref____
Dufferin Pay & Cr St corn*
English Elec of Can A_
•
Goodyear T & Rub coin.*
Hamilton Bridge corn. •
Honey Dew corn
•
Preferred
•
Hum berstone Shoe corn.._•
Imperial Tobacco ord_ .5
Montreal L It & P Cons •
Power Corp of Can corn_ •
Service Stations pref___100
Shawinigan Water & Pow.*
Tamblyns Ltd G pref_100
United Fuel Invest pref100
Oil
•
British American Oil
Imperial Oil Limited
•
International Petroluem..•
NicColl Frontenac 011 corn*
Preferred
100
Supertest Petroleum ord_ •
Common
•
Thsvors 1.1mItnd nra
15
46
1534
7%
834
11
73.4
63.4
13%
1494
1%
4
4
15
IA
10
6
8
40
3
34
5
1574
71%
2834
634
3
10%
85
6
631
1334
15
174
4
4
1594
lA
10
6
8
46
3
%
51A
153.j
73.4
29
7
334
1034
85
6
734
8
1034
794
56
1134
113.4
10
834
394
1134
834
56
12
1134
10
*gtWC%
*
..t2 WO. *
,
,
0004.0,000000,,,C7.0,00000000Co
Range Since Jan. 1.
W
B Stocks-
ealUGJ
Last Week's Range for
Sale
of Prices.
Week.
Par. Price Low. High. Shares.
Stocks-
*WW
Pa ..gag
.
r riaag
. .
.
3
Last Week's Range for
Sale
of Prices.
Week.
/'ar. Price. Low. High. Shares.
*
.0
*°
Toronto Stock Exchange.
-Record of transactions at
the Toronto Stock Exchange, Mar. 4 to Mar. 10, both inclusive, compiled from official sales lists:
Range Since Jan. I,
..-...Low.
High. .
6
1:,..I ;
1334
134
334
4
1434
134
10
5
540
234
%
5
1494
7
2794
6
3
974
82
5
Ru3
Feb
Jan
Jan
Mar
Feb
Feb
Mar
Mar
Jan
Feb
Mar
Feb
Mar
Mar
Jan
Feb
Feb
Jan
Mar
Feb
Feb
Feb
73..4
14
1534
2.4
5
534
174
234
10
10
8
67'.3
33.1
.,
;
17
874
32
874
394
1594
88
934
Feb
Feb
Jan
Feb
Jan
Feb
Jan
Jan
Mar
Feb
Mir
Jan
Jai
Jan
Feb
Jan
Jan
Jan
Jan
Jan
Jan
Feb
Jan
794
8
1034
754
56
1134
1174
9
Jan
Mar
Mar
Mar
Mar
Mar
Feb
Feb
834
934
1234
9
61
14
13
10
Yet
Jan
Feb
Jan
Feb
Jan
Jan
Mai
• No par value.
Dre
0/ Stnannut
,
Tom morta
PUBLISHED WEEKLY
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Including Postage12 Mos.
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fflontbip,
uartertp anb jr)aff pearl?.
CUMULATIVE INDEX COVERING RETURNS IN PRESENT AND PREVIOUS ISSUES.
monthly, quarBelow will be found all returns of earnings, income and profits for current periods, whether
rail-yearly,that have appeared the present week. It covers all classes of corporate entities, whether
terly or half
industrial concerns or any other class and character of enterprise or undertaking. It is all
roads, public utilities,
Inclusive in that respect, and hence constitutes an invaluable record.
have come to hand the present week.
The accompanying index, however, is not confined to the returns which
in our issue of Feb. 25. The object
It includes also those given in our issue of March 4 and some of those given
contained in our "Monthly Earnings Record," which has been
of this index is to supplement the information
statements as well as monthly reports. The "Monthly
enlarged so as to embrace quarterly and semi-annual
complete up to the date of issue, Feb. 24, embracing every monthly, semiEarnings Record" was absolutely
at the time of going to press.
annual and quarterly report which was available
available in the interval since then. The figThe index now given shows the statements that have become
not a few instances of additions to the list, repures in most cases are merely for a month later, but there are also
when the February number of the "Monthly
resenting companies which had not yet made up their returns
Earnings Record" was issued.
each week,furnishing a reference to every
We mean to continue giving this current index in the "Chronicle"
last preceding number of the "Monthly Earnings Record." The latter is
return that has appeared since the
purposes. But to those persons who are desirous
complete in and by itself, and for most persons will answer all
down to date every week, this further and supplementary index in the "Chronicle"
of seeing the record brought
conjunction with the "Monthly Earnings Record"
will furnish an invaluable addition. The "Chronicle" index in
and income, furnishing a cumuone at a glance to find the very latest figures of current earnings
will enable any
date each and every week—an absolutely unique service. A further valuable feature
lative record brought down to
Record," there is a reference
return, both in the "Chronicle" and the "Monthly Earnings
Is that at the end of every
annual report
date and page number the issue of the "Chronicle" where the latest complete
line showing by
published.
of the company was
Issue of Chronicle
When Published. Page.
Name of Company—
Insurance Co.of Water.
Agricultural
Mar. 4__1551
town, N. Y
Mar. 4...1529
Akron Canton & Youngstown
Mar. 4__1532
Southern
Alabama Great
Mar. 4_1534
Alabama Power Co
Mar. 11_1706
Alaska Juneau Gold Mining Co
Mar. C.1551
Inc
Albert Frank-Guenther Law,
Feb. 25_1377
Aldred Investment Trust
Feb. 25__1377
.... Allegheny Steel Co
Mar. 4_ 1529
Alton R.R
Feb. 25__1361
Alton & Southern Ry
Mar 4__1551
Amalgamated Leather Cos
Feb. 25__1377
American Bank Note Co
Mar. 4__1551
Corp
American Bankstocks
Mar. 4.._1551
American Can Co
Feb. 25..1377
American Chain Co
Mar. C.1551
American Cigar Co
.,_Feb. 25..1362
American Commercial Alcohol Co..
Mar. 4_1552
American Hardware Corp
.....Mar. 4__1552
American Home Products Corp
Mar. 111721
American Ice Co
CorpFeb. 25_1378
American La France & Foamite
-Feb. 25..1362
American Laundry Machinery Co_ _ Feb. 25-1368
American Locomotive Co
Feb. 25_1378
American Metal Co., Ltd
Mar. 4..1552
American News Co
Mar. 11_1713
American Roiling Mills Co
Mar. 4__1552
American Safety Razor Corp
Mar. 11__1709
American Smelting & Refining Co
Mar. 4_,i552
American Steel Foundries
Feb. 25_1378
American Stores Co
Mar. 11_ _17l1
Refining Co
American Sugar
Co—mar. 11__1706
American Water Works & Elec.
Mar. 4._1553
American Woolen Co.,Inc
Feb. 25_1362
A.P. W.Paper Co.,Inc
Mar. 4..1534
Arundel Corp
Mar. 11__1716
Associated Gas & Electric Co
Mar. 4...1532
Atchison Topeka & Santa Fe
Mar. 11__1705
Atlanta Birmingham & Coast
Mar. 4_-1529
Atlanta & West Point
Mar. 4__I529
Atlantic City
Mar. 4._1529
Atlantic Coast Line
Feb. 25_1362
Lines
Ati. Gulf & W.Indies S.S.
Mar. 11__1709
Atlantic Refining Co
Feb. 25.1365
Atlas Corp
Mar. 4.A529
Baltimore & Ohio RR
Mar. 4..1529
Baltimore & Ohio Chicago Term
Feb. 25..1379
Baltimore Tube Co
Mar. 4_ 1532
Bangor & Aroostook RR.Co
Feb. 25..1373
-Electric Co
Bangor Hydro
Mar. 4__1534
Barcelona Trac.,Lt.&Pr.Co.,Ltd Feb. 25..1379
Barker Bros. Corp
Mar. 11__17l0
Barnsdall Corp
Mar. 11-_1706
Baton Rouge Electric Co
Western Ry.Mar. 4-_1531
Beaumont Sour Lake &
Mar. 4.,.1554
Beech-Nut Packing Co
Mar. 4__15
Belding-Heminway Co
Feb. 25__I373
Bell Telephone Co. of Canada
Mar. 4_1529
Belt Ry. of Chicago
Mar. 4..1529
Bessemer & Lake Erie
Mar. 11__1710
Bethlehem Steel Co
Feb. 25__1379
Bigelow Sanford Carpet Co
Co., Inc.. Feb. 25_1379
(Sidney) Blumenthal &
Mar. 4., 1554
Bon Ami Co
Mar. 4__I536
Borden Co
Mar. 4._1535
Boston Elevated Ry
Mar. 4..1532
& Maine RR
Boston
Co.. Ltd Mar. 4..1534
Brazilian Trac.. Lt.& Pr.
Mar. 4__1535
Brillo Mtg. Co
Mar. 11_1706
British Columbia Power Corp.Ltd Mar. 4__I529
Brooklyn Eastern Dist. Terminal- Feb. 25__1363
Brooklyn Edison Co
Mar. 41529
Burlington-Rock Island RR
Mar. 4..1535
Bulova Watch Co
Sullivan Mining &
Bunker Hill &
Feb. 25-1363
111 Concentrating Co
Mar. 11,1722
Burroughs Adding Machine Co Co_Mar. 4--1535
Calumet& Hecla Consol.Copper
Mar. 4__1529
Cambria & Indiana
Mar. 4_.I554
Canada Permanent Mtge. Corp
Mar. 4__1535
Canada Northern Power CorDS
4...1529
Canadian Nat.Lines in New EnglandMar. 4__153
2
Mar.
Canadian National Rys
_Mar. 4-1529
Canadian Pacific Lines in
Maine_.
Lines in Vermont..Mar. 4_1529
Canadian Pacific
Mar. 4__1532
Canadian Pacific Ry
Feb. 25_1373
Capital Traction Co
0
Feb. 25-138
(J. I.) Case Co
Mar. 4-_1529
Central of Georgia
Hudson Gas & Electric CorpFeb. 25..1373
Central
Central Illinois Public Service Co_Mar. 11_1717
Issue of Chronicle
We/in Published. Page.
Name of Company—
Mar. 4__1529
Central RR.of New Jersey
Feb. 25__1362
Central Vermont Ry
Mar. 11__1712
eed Products Corp
Certain-t
Charleston & Western Carolina__ -Mar. 4_1530
Feb. 25..1361
Chesapeake & Ohio
Mar. 4_1530
Chicago Burlington &Quincy
Mar. 4__1530
Chicago & Eastern Illinois
Mar. 4A530
& Erie
Chicago
Mar. 4._1530
Chicago Great Western
Mar. 4..1530
Chicago & Illinois Midland
_Mar. 4__1530
Chic. Indianapolis & Louisville
Mar. 4__1530
Chic. Milw. St. Paul & Pacific
Mar. 4__153
& North Western
Chicago
Mar. 4._1530
Chicago River & Indiana
Mar. C1530
Chic. Rock Island & Gulf Ry
Mar. 4__1533
Chic. Rock Island & Pacific
Mar. 4_1530
Chicago St.Paul Minn.& Omaha
Mar. 4I545
So. Shore & So. Bend RR
Chic.
Mar. CA535
Chickasha Cotton Oil Co
Mar. 4__1541
Chrysler Corp
Chic. New Orleans & Texas Pacific—Mar. 4..1532
Feb. 25-1373
Cleveland Ry. Co
Mar. 4__1530
Clinchfield
Mar. 11__1722
Coca-Cola Co
Feb. 25_ 1363
Coca-Cola International Corp
Mar. 4.1554
almolive-Peet Co
Colgate-P
Mar. 11._1723
Colorado Fuel & Iron Co
Mar. 4_1530
Colorado & Southern
Mar. 4__1530
Columbus & Greenville
Commonwealth & Southern Coro mar. 4_1535
Mar. 4..1535
Power & Light Co
Community
Mar. 4__1530
Conemaugh & Black Lick
Feb. 25..1380
Congoleum Nairn, Inc
Feb. 25_1363
Consolidated Gas Co. of N.Y
Consolidated Gas Electric Light &
Mar. 11__1717
Power Co. of Baltimore
Mar. II 1708
Consolidated RR.of Cuba
Mar. 4__1535
Consumers Power Co
Mar. 11__1723
of America
Container Corp.
Mar. 11_ 1723
Continental Can Co
Mar. 4__1555
Continental Casualty Co
Mar. 11_1712
Corn Products Refining Co
Mar. 4_1535
Crown Willamette Paper Co
Mar. 4..1535
Zellerbach, Inc
Crown
Mar. 11_1706
Cuba Co
Mar. 11__1705
Cuba Northern RR.Co
Mar. 11_1705
Cuba RR.Co
Mar. 4._1555
Dairy Corp. of Canada
Feb. 25_1381
Davenport Hosiery Mills, Inc
Mar. 4_1530
Delaware & Hudson
Delaware Lackawanna & Western Mar. 4__I530
Mar. 4.A533
Denver & Rio Grande Western
Mar. 4__1530
Denver & Salt Lake
Mar. 4__I530
Detroit & Mackinac
Mar. 4__1530
Detroit Terminal
Mar. 4__1530
Detroit & Toledo Shore Line
Mar. 4_1556
Diamond Match Co
Feb. 25..1361
Detroit Toledo & Ironton
Feb. 25..l368
Drug. Inc
Mar. 11 1718
Duke Power Co
Mar. 11_1718
Duke-Price Power Co., Ltd
Mar. 4..l530
Duluth Missabe & Northern
Mar. 11._1705
Duluth South Shore & Atiantic
Mar. 4_1530
Duluth Winnipeg & Pacific
liar. 11__1706
Duquesne Light Co
Mar. 11._1706
East Kootenay Power Co. Ltd
Eastern Massachusetts Street Ry___Mar. 11__1718
Feb. 25._11374
Eastern States Power Corp
Mar. 11__1706
Eastern Steamship Lines Inc
Mar. 4 1545
Eastern Texas Electric Co
Feb. 25_ 1364
Eastern Utilities Associates
Mar. 11 1706
El Paso Electric Co
Mar. 11__1723
Electric Auto-Lite Co
Mar. 4..1556
Electric Controller & Mfg. Co
Mar. 4_.1530
Ellin Joliet & Eastern
Engineers Public Service Co. Inc__ _Mar. 11__1706
Mar. 4_1533
Erie RR
Mar. 4l535
Exchange Buffet Corp
Feb. 25-1364
Fall River Gas Works Co
Feb. 25__1374
Co
Federal Light& Traction
Mar. 11__1707
Federal Mining & Smelting Co
Mar. 11__1714
Federal Water Service Corp
Mar. 4.A557
(Marshall) Field & Co
Mar. 11_1707
First Chrold Corp
Mar. 4-1535
First National Stores Corp
Mar. 4..1530
Florida East Coast
Fonda Johnstown & Gloversville RRMar. 11-1705
Feb. 25..1381
Formica Insulation Co
Mar. 4__1530
Fort Smith & Western
Mar. 4.-1530
Fort Worth & Denver City
Mar. 4-1531
Fort Worth & Rio Grande
Issue of Chronicle
Wehn Published. Page.
Name of Company—
Mar. 4_ A530
Galveston Wharf
Feb. 25_1382
Gemmer mtg. Co
Mar. 11__1724
General Bronze Corp
Mar. 4__1557
General Cable Corp
Feb. 25__1370
General Gas & Electric Corp
Mar. 4__1557
General Electric Co
Mar. 11__1708
General Motors Acceptance Corp
Feb. 25_1382
General Outdoor Advertising Co
Feb. 25__1382
GenerallPrinting Ink Corp
Mar. 4_A558
General Realty & Utilities Corp
liar. 11_1725
General Refractories Corp
Mar. 11..1725
General Steel Castings Corp
Mar. 11__1725
General Steel Wares Ltd
Mar. 4__1530
Georgia RR
Mar. C _1533
Georgia & Florida
Mar. 4__1535
Georgia Power Co
Mar. 4__1532
Georgia Southern & Florida Ry
Mar. 4_1558
Gillette Safety Razor Co
Mar. 4__1535
(Adolf) Gobel, Inc
Mar. 4__1558
Gold Dust Corp
Mar. 4__1539
(B. F.) Goodrich Co
Mar. 4__1530
Grand Trunk Western
Mar. 4__1530
Great Northern
Mar. C _1530
Green Bay & Western RR.Co
Mar. 4_1559
Greenfield Tap & Die Corp
Mar. 4__1559
Grigsby-Grunow Co
Feb. 25_1383
Goodyear Tire & Rubber Co
oo
Gdyear Tire & Rubber Co. of
Mar. 41559
Canada, Ltd
.
Mar. 4 _1529
Gulf Colorado & Santa Fe
Mar. 4._1530
Gulf Mobile & Northern RR
Gulf & Ship Island
536
. 1:1720
M tir
lia r. 14
Gulf States Steel Co
liar. 11_1707
Gulf States Utilities Co
Feb. 25__1374
Hackensack Water Co
Feb. 25_1383
(C. M.) Hall Lamp Co
Feb.
(M.A.)Hanna Co
89
5
l . 4 1133
Harbison-Walker Refractories Co...I1ar 2 :155
Hatfield Campbell Creek Coal Co Mar. 4__I559
Feb. 25__1364
Gas Light Co
Haverhill
_
Feb. 25_1384
merrood.waherieht co
Mar. 4__1535
Holland Furnace Co
Mar. 111726
Howe Sound Co
Mar. 11__1726
Houston Oil Co. of Texas
Mar. 11._1726
Hupp Motor Car Corp
Mar. 4..1560
Huron & Erie Mortgage Corp
Mar. 4_1530
Illinois Central System
Mar. 4-1530
Illinois Central RR
Illinois Terminal
Indiana Harbor Belt
.
Indiana Hydro-Electric Power Co_M aar : 4 .. 115430
r
MMa r. 44.7 7155336
Mar. 11_1718
Indiana Service Corp
Internat'l Business Machines Corp-Mar. 111712
Mar. 4._1560
Insuranshares Corp. of Del
International-Great Northern
International Harvester Co
: : 1
arr. 4111154253
Internat'l Rys.of Central America Maa r 4- 1533
internationalIntern a tlo
.
c
Razor Corp _ _ liar. 111_1727
International s
Mar. 11_1727
lSafetySliver
Feb. 25..1384
Interstate HosieryMills,Inc
Mar. 4._1560
Intertype Corp
Mar. 4._1560
Investment Co. of America
Mar. 4-1561
Johns-Manville Corp
Mar. 11__1727
Jones & Laughlin Steel Corp
Mar. 4_-1530
Kansas City Southern
Mar. 4-1530
Kansas Oklahoma & Gulf
Mar. 4_ -1539
Kelly Springfield Tire Co
Mar. 11__1707
(The) Key West Electric Co
Feb. 25__1375
Laclede Gas Light Co
Mar. 11__1705
Lake Superior & Ishpeming
Mar. 4__1530
Lake Terminal
Feb. 25._1385
Lambert Co
Mar. 4_1561
Letcourt Realty Co
Feb. 25 _1385
Lehigh Coal & Navigation Co
Mar. 4__1530
Lehigh & Hudson River
_
Mar. 4_1530
Lehigh & New England
Lehigh Portland Cement Co
6
8
:15 2
4
Feb. 25 13 5
Lehigh Valley Coal Corp
Mar. 4__I530
Mar. 4_1562
Libbey-Owners-Ford Glass Co
Feb. 25__1386
Li higil it lleY
Lenk heVaCo
Mar. 11_1707
Loblaw Groceterias Ltd
Mar. 4-1535
Loewe. Inc
Long Island
Loose Wiles Biscuit Co
Lo A n geles & s,ft Lake Corp-- I at 21541----11111135577233421
.
Los ngel esGaS s Electric
a
4Fme r:
M aabr:
Mar. 4-1531
Louisiana & Arkansas
Louisiana Arkansas & Texas
. 4-- 07
Mar
Louisiana Steam Generating Corp_Mar. 11--1131
Louisville Gas & Electric Co.(no.)_mar. 11-1707
Volume 136
Financial Chronicle
Issue of Chronicle
Name of Companyhen Published. Page.
- Louisville & Nashville
Mar. 4..1531
Louisville Ry. Co
Mar. 11__1719
Ludlum Steel Corp
Mar. 11_1728
Lycoming Mfg Co
Mar. 4__I562
McKeesport Tin Plate Co
Mar. 4__1563
Mack Trucks, Inc
Mar. 4__1562
Mahoning Coal RR
Mar. 41533
Maine Central RR
Mar. 4__I533
Merchant Calculating Machine Co Mar. 11_1729
Marion Steam Shovel Co
Feb. 25_1386
Market Street Ry. Co
Mar. 4__1536
Mass. Bonding & Insurance Co
Mar. 4_1563
Melville Shoe Corp
Mar. 11__1729
Mexican Light & Power Co
Mar. 4._1536
Mexico Tramways Co
Mar. 4._1536
Miami Bridge Co
Mar. 11__1729
Midland Steel Products Co
Mar. 11_1730
Midland Valley
Mar. 4..1531
Midvale Co
Mar. 4._1563
Minneapolis & St. Louis
Mar. 4__1531
Minn. St. Paul & S.S. Marie
Mar. 4._1531
Mississippi Central
Mar. 4_.1531
Missouri Illinois
Mar. 4__1531
Missouri-Kansas-Texas Lines
Mar. 4__I533
Missouri & North Arkansas
Mar. 4 1531
Missouri Pacific
Mar. 4__1531
Mobile & Ohio RR
Mar. 4.1531
Mohawk Investment Corp
Mar. 4_.1563
Mohawk Mining Co
Mar. C.I564
Mohawk Rubber Co
Mar. 4__1564
Monongahela
Mar. 4..1531
Monongahela Connecting
Mar. 4..1531
Motor Wheel Corp
Mar. 11..1730
Munsingm ear, Inc
Feb. 25__1387
<F. E.) Myers & Pro
Mar. 4..1536
Nashville Chattanooga & St. Louis Mar. 4_1531
National Candy,Inc
Feb 25_1387
National Commercial Title & Mortgage Guaranty Co.(Newark, N.J.)Mar. 4_1564
National Dairy Products Corp
Mar. 11..1731
National Leather Co
Mar. 4__1564
National Railways of Mexico
Mar. 11..1706
National Sugar Refining Co
Mar. 11_1731
National Tea Co
Mar. 4._1565
National Transit Co
Mar. 4 .1565
(The) Nevada California Elec. Corp Mar. II__1707
Nevada Northern
Mar. 4__1531
Newburgh & South Shore
Mar. 4..1531
New Jersey & New York
Mar. 4__I530
New Orleans Great Northern
Mar. 4..1531
New Orleans &Northeastern RR
Mar. 4__I532
New Orleans Terminal
Mar. 4_.1532
New Orleans Texas & Mexico
Mar. 4__1531
New York Air Brake Co
Mar. 4..1565
New York Central
Mar. 4_.1533
New York Chicago & St. Louis
Feb. 25__1361
New York Connecting
Mar. 4..1531
New York Edison Co
Feb. 25._I364
N. Y. N. H.& Hartford RR
Mar. 4__1533
New York Ontario & Western
Mar. 4__1531
New York Railways Corp
Mar. 11..1707
New York Shipbuilding Corp
Mar. 11__1731
New York Steam Corp
Feb. 25__1364
N.Y. Susquehanna & Western
Mar. 4_1531
New York Telephone Co
Mar. 11_1713
New York Trap Rock Corp
Mar. 11__1732
N.Y. Westchester & Boston Ry. Co_Mar. C _1536
Norfolk Southern
Mar. 4._1531
Norfolk & Western Ry
Mar. 4._1534
North American Aviation, Inc.
Mar. 11_.1731
North American Co
Mar. 4...1536
North American Edison Co
Mar. 11_.1719
North American Light & Power Co_ _Mar. 11__1719
Northern Alabama Ry
Mar. 4 1532
Northern Indiana Public Service Co.Mar. 11__1719
Northern Insur. Co. of N.Y
Mar. 4._1565
Northern Pacific
Mar. 4__1531
Northern Securities Co
Mar. 11_ 1732
Northern States Power Co
Mar. II__1707
Latest Gross Earnings by Weeks.
-We give below the
latest weekly returns of earnings for all roads making such
reports:
Name
Canadian National
Canadian Pacific
Georgia & Florida
Minneapolis & St Louis
Southern
St Louis Southwestern
Western Maryland
Current
Year.
Previous
Year.
2,224,718
1,837.000
14,175
122,594
1.752,888
223,800
217,338
Period
Covered.
4th wk of Feb.
4th wk of Feb.
4th wk of Feb.
1st wk of March
4th wk of Feb.
4th wk of Feb.
9th wk of Feb.
3,107,788
2,817.000
18,808
148,442
2.299,484
288,587
278,489
Inc. (-I-) or
Dec.(-).
-883,048
-780,000
-2,833
23,848
-548,818
-84,787
59,131
We also give the following comparisons of the monthly
totals of railroad earnings, both gross and net (the net before
the deduction of taxes), both being very comprehensive.
They include all the Class I roads in the country.
Gross Earnings.
Month.
January
February
March
April
May
June
July
August
September
October
November
December
January
Length of Road.
Inc. (+1 or
Dec.(-).
1932.
1931.
274.976,249
286,892,520
289,833,741
267,473,938
254,382,711
245,860,615
237,482.789
251,761,038
284,724,582
298,076,110
253,223.409
245,751,231
1933.
228,889,421
385,522.091
338,182,295
375,817,147
389,123,100
388,417.190
389,133,884
378,314,314
383,778,572
384,385,728
362,551,904
304,829,988
288.205,786
1932.
274,890,197
90.545,842
-69,289,775
85,983,408
101.649,162
-114.034,479
-123,273,269
138.851,525
112,017,534
79,661,146
-84,475,794
51,606.559
-42,454,535
46,000,776
Net Earnings.
1932.
1931.
Mlles.
244,243
242.312
241,998
241,878
241,995
242,179
242,228
242,208
242,292
242,031
241,971
241,808
1933.
241,881
Miles.
242,385
240,943
241,974
241,992
242,183
242,527
242,221
242,217
242,143
242,024
242,027
241.950
1932.
241,991
Inc.(+1 or Dec.(-).
1932.
Januar)
,
February
March
April
May
June
July
August
13eptember
October
November
December
JaUllarY
1931.
Amount,
Per Cent.
$
45,940,885
57.375.537
87,870,702
58,283,320
47,429,240
47,008,035
48.125,932
62,540.800
83,092.939
98,336,295
83,968.101
57,854,895
1933.
45,603,287
$
72.023.230
88,078.525
84.708.410
79,185,876
81,052,518
89.888,858
98,983,455
95,070,808
92,153,547
101,914,718
88,854.815
53.482,800
1932.
45,964,987
8
-28,082,545
-8,702,988
-17,035,708
-22,922,358
-83,823,278
-42,880,821
-50,857,523
-32,530,008
-9.060,608
-3.578,421
-2,888.514
+4.372.095
-38.24
-13.11
-20.18
-28.97
--41.41
-47.68
-52.43
-34.12
-9.83
-3.51
-4.32
+8.17
-361,700
-0.79
1705
Issue of Chronicle
Name of CompanyWhen Published. Pays.
Northwestern Pacific RR
Mar. 4_1531
Ohio Bell Telephone Co
Mar. 4..1547
Ohio Edison Co
Mar. 4...1536
Ohio Oil Co
Mar. 11._1732
Oklahoma City-Ada-Atoka
Mar. 4__1531
Oppenheim Collins & Co.Inc
Mar. 11__1707
(The)Orange &Rockland Elec.Coar.
11__1707
Oregon Short Line
Mar,
Oregon-Washington RR.& Nay. Co.Mar. 4_1532
4__I532
Pacific Tel. & Tel. Co
Mar. 4__1547
Panhandle & Santa Fe
Mar. C_1529
Parker Rust-Proof Co
Feb. 25__1389
(David) Pender Grocery Co
Mar. 11..1733
Penick & Ford, Ltd
Mar. 4__1566
(J. C.) Penney Co
Feb. 25_1388
Pennsylvania-Dixie Cement Corp__ _Mar. 4_1566
Pennsylvania RR
Mar. 4__1531
Pennsylvania RR. Regional System_Mar. 41533
Pennsylvania Water & Power Co
Mar. 11__1709
Peoria & Pekin Union
Mar. 4_153I
Pere Marquette Ry. Co
Mar. 4__1534
Philadelphia Co
Mar. 11_.1707
Philadelphia Rapid Transit Co
Mar. 4_1547
Phila. & West Chester Traction Co-Feb. 25_1376
(The) Philippine Railway Co
Mar. 11__1706
Phillips-Jones Corp
Feb. 25__1389
Phillips Petroleum Co
Feb. 25_1368
Pie Bakeries. Inc
Mar. 4__1566
Pittsburgh Coal Co
Mar. 11__1733
Pittsburgh & Lake Erie RR
Mar. C_1534
Pittsburgh & Shawmut
Mar. 4..1531
Pittsburgh Shawmut 8c Northern- -Mar. 4__1531
Pittsburgh & West Virginia
Mar. 4..1531
Ponce Electric Co
Mar. 4__1548
Powdrell & Alexander, Inc
Feb. 25__1389
Public Service Co. of Northern Ill. Feb. 25..1376
Pub.Service Co-ordinated TransportMar.
11_ _1720
Public Service Corp.of N. J
Mar. 4__I548
Public Service Electric & Gas Co
Mar. 11__1720
Puget Sound Power & Light Co_ _ _ _Mar.
11__1707
(The) Pullman Co
Mar. 11..1707
Quaker Oats Co
Feb. 25..1390
Quebec Power Co
Feb. 25_1376
Radio Corp. of America
Mar. 4__1541
Railway Express Agency
Mar. 4__1536
Reading Co
Mar. 4..1531
Remington-Rand, Inc
Feb. 25__1364
Rich'd Fredericksburg & Potomac
Mar. 4__1531
Rochester & Pittsburgh Coal Co
Mar. 41567
Rollins Hosiery Mills, Inc
Feb. 25__1390
Rutland RR
Mar. 4..1534
(Joseph T.) Ryerson & Son
Mar. 1L_1733
St. Joseph & Grand Island
St. Louis Brownsville & Mexico Ry Mar. 4..1532
Mar. C_1531
St.Louls-San Francisco Ry.Co
Mar. 4._1531
St.Louis San Francisco & Texas
Mar. 4_ _1531
St. Louis Southwestern Ry
Mar. 4__1534
San Antonio Uvalde & Gulf RR. Co.Mar.
4__1531
San Diego & Arizona Ry
Mar. 4..1531
Savannah Electric & Power Co
Mar. 1L.1707
Savannah Sugar Ref. Corp
Mar. 4__1567
Seaboard Air Line
Mar. 4__1531
Sears, Roebuck & Co
Mar. 4..1538
Sharon Steel Hoop Co
Mar. 1L.1734
Sharp & Dohme, Inc
Feb. 251391
Sherry-Netherlands Hotel
Feb. 25__1391
Sierra Pacific Electric Co
Feb. 25_1365
Simms Petroleum Co
Mar. 11_1711
(H.) Simon & Sons, Ltd
Mar. 11..1734
Soo Line System
Mar. 4__I534
Southern Bell Tel & Tel. Co
Mar. C.1549
Southern California Edison Co
Mar. 11..1709
Southern Colorado Power Co
Mar. II__1707
Southern Pacific Co
Mar. 4__I532
Southern Pacific S. S. Lines
Mar.
Southern Pacific Golden Gate Co _Mar. 4_1532
4__1568
Southern Ry. Co
Mar. 4_.1532
Spokane International
Mar. 4._1531
Spokane Portland & Seattle
Mar. 4__1531
•
Issue of Chronicle
Name of CompanyWoes Published. Page.
Standard Brands,Inc
Feb. 25..1363
(L. 5.) Starret Co
Mar. 4__1536
Staten Island Rapid Transit
Mar. 4_1532
State Street Investment Corp
Mar. 11__1734
Stone & Webster Inc
Mar. 11..1708
Sun Oil Co
Mar. 11__1735
Superior Steel Corp
Mar. 11__1735
Sutherland Paper Co
Mar. 11_1735
Tacony Palmyra Bridge Co
Feb. 25_1392
Tampa Electric Co
Feb. 25_1365
Tennessee Central
_.Mar. 4__1532
(The)Tennessee Electric Power Co__Mar. C_1536
Terminal RR. Assn. of St. Louis„--Mar. 4_1532
Texarkana & Fort Smith
Mar. 4_.1530
Texas Gulf Sulphur Co
Feb. 25..1391
Texas Mexican
Mar. 4..1532
Texas & New Orleans
Mar. 4__1532
Texas & Pacific Ry
Mar. 4__I534
Thatcher Mfg. Co
Feb. 25__1392
Thermoid Co
Feb. 25..1392
Third Avenue Ry. System
Mar. 4..1536
Tide Water Associated 011 Co
Mar. 11..1715
Tide Water 011 Co
Mar. 11..1715
Toledo Light & Power Co
Mar. 4__1549
Toledo Peoria & Western
Mar. 4__1532
Toledo Terminal
Mar. 4__1532
Toronto Hamilton & Buffalo Ay-J.1er. 4_1534
Trico Products Co
Feb. 25_1392
Truax Traer Coal Co
Mar. 11_1707
Underground Electric Rya. of London, Ltd
Mar. 4..1549
Union Elec. Lt.& Pr. Co.(Mo.)
Mar. 4_1549
Union Pacific Co
Mar. 4_1532
Union Pacific RR
Feb. 25_1366
Union RR.of Penne
Mar. 4..1532
Union Storage Co
Mar. 4__I569
United Biscuit Co. of America
Mar. 11..1736
United Carbon Co
Mar. 4__I569
United Electric Coal Cos
Feb. 25_1365
United Electric Light & Power Co Mar. 4..1550
United Engineering & Foundry Co Mar. 11__1736
United Fruit Co
Feb. 25__1369
United States Envelope Co
Mar. 4..1570
U. S. Fidelityl& Guaranty Co
Feb. 25__1393
U. S. Industrial Alcohol Co
Mar. 11__1736
United States Rubber Co
Mar. 4__1540
Utah RR
Mar. 4_1532
Utility & Industrial Corp
Feb. 25__I394
Van Raalt Co., Inc
Mar. 4__1570
Viking Pump Co
Feb. 25_1394
Virginia Electric & Power Co
Mar. 11__1707
Virginia Iron Coal & Coke Co
Mar. 11__1737
Virginian
Mar. 4__1532
Vogt Mfg.Corp
Mar. 4__1570
Vulcan Detinning Co
Feb. 25_1365
Walworth Co
Feb. 25..1394
Waypoyset Mfg. Co
Feb. 25_1395
Western Dairy Products Co
Feb. 25_1395
Western Maryland
Mar. 4..1534
Western Massachusetts Cos
Mar. 4..1550
Western Pacific
Mar. 4..1532
(The) Western Public Service Co
Mar. 11__1707
Western Public Service Cos
Mar. 4__1550
Western Ry. of Alabama
Mar. 4__I532
Western Union Telegraph Co
Mar. 11__1720
Westinghouse Electric & Mfg. Co._.Feb. 25_1395
Westmoreland Coal Co
Mar. 4__1581
Westmoreland,Inc
Mar. 4__158
West Penn Electric Co
Mar. 11__17211
Wheeling & Lake Erie
Mar. 4_1532
(William) Whitman Co..Inc
Feb. 25_1395
Wichita Falls & Southern
Mar. 4..1532
Wisconsin Michigan Power Co
Mar. 11..1720
Woodley Petroleum Co
Feb. 25__1395
(Wm.) Wrigley, Jr., Co
Mar. 4__1581
Yazoo & Mississippi Valley
Mar. 4__1530
Yellow & Checker Cab Co
Feb. 25_1685
Yellow Truck & Coach Mfg.Co
Feb. 25...1395
(J. S.) Young Co
Mar. 4__1581
Net Earnings Monthly to Latest Dates.
Atlanta Birmingham & CoastJanuary1932.
1933.
Gross from railway__ $195,045
8213,846
Net from railway_ _ _ _
-11,942
-84,566
Net after rents
-38,856 -118,274
Duluth South Shore & AtlanticJanuary1932.
1933.
Gross from railway
$135,882
$125,543
Net from railway_ _ _ _
-4,531
-30,384
Net after rents
-63.103
-29,730
Lake Superior & Ishpeming,
January1932.
1933.
Gross from railway...
$25,573
$25,330
Net from railway_ _ _ _
-22,083
-31,479
Net after rents
-35,682
-47,543
1931.
8292,062
--67,927
-100,494
1930.
$340,118
-49,476
-76,322
1931.
$247,208
40,283
14
1930.
$346,676
39.732
-7,025
1931.
$55,372
-35,700
-56,798
1930.
$64,332
-32,250
-50,264
Other Monthly Steam Railroad Reports.
-In the following we show the monthly reports of STEAM railroad
companies received this week as issued by the companies
themselves, where they embrace more facts than are required in the reports to the Inter-State Commerce Commission, such as fixed charges, &c., or where they differ in
some other respect from the reports of the Commission.
Cuba Railroad Co.
Period Ended Dec.31- 1932-3 Mos.-1931.
1932-6 Mos.-1931.
Net loss after charges _ _ _
$419,833
$129,205
$774,606
$187,833
52IPLast complete annual report in Financial Chronicle Sept.17'32, p.1987
Cuba Northern Railway.
Period End. Dec. 31Gross revenue
Int., taxes, deprec.. &c_
1932-3 Mos.-1931.
$388,478
$479,868
578,134
527,738
1932-6 Mos.-1931.
$886,038 $1,312,119
1.188,568
1.376,756
Net leas
$189,656
847.869
8302,530
184,638
r 'Last complete annual report in Financial Chronicle Sept. 17'32, p. 1987
i
Fonda Johnstown & Gloversville RR. Co.
-Month of January- -12 Mos.End.Dec. 311932.
1932.
1933.
1931.
$58,343
$44,832
$600,811
$800,339
40.403
54,911
537.444
680.085
Operating revenues.. _ _
Operating expenses
Net rev, from oper___
Tax accruals
$4,429
2.750
$3,432
4,500
$63,367
44,076
$120,253
48,355
Operating Income....
Other income
$1,679
719
def$1,068
1,530
819,291
28,141
$71,898
58,774
Gross income
Deduct, from gross Inc_
$2,398
16,290
$4462
$47,432
$130.673
17,785
211,859
257,549
Net income
-Dr
$13,891
$17,323
$164,427
$128,876
521r*Last complete annual report in Financial Chronicle Feb. 25 '33, p. 1371
March 11 1933
Financial Chronicle
1706
American Water Works & Electric Co.
Consolidated Railroads of Cuba.
(And Subsidiaries).
1932-6 Mos.-1931.
Period End. Dec. 31- 1932-3 Mos.-1931.
$168,396 $1,080,316prof8134,129
$609,801
Net loss after exps.,&c__
of the company alone for the quarter endeql Dec. 31 1932.
Ir The operations
shows not loss of $2.813 after expenses, &c., comparing with net income of
$4.751 in the Dec. quarter of 1931. Net loss for 6 months ended Dec. 31
1932. was $4,138 after expenses, &c., against net income of $6.867 in like
six months of preceding fiscal year.
-Last complete annual report in Financial Chronicle Sept. 17'32, p. 1987
1:_i
National Railways of Mexico.
--Month of December--12 Mos.End. Dec.311931.
1932.
1931.
1932.
Pesos.
Pesos.
Pesos.
Pesos.
6,406,574 6.944.198 73,460,461 88,356,558
Railway oper. revenues_
5,961.905 69,328,920 73,446,007
Railway oper. expenses_ 6,031,651
Net oper. revenue_ _ _
Percentage exp. to revs_
Tax accruals & uncollect.
revenue (deduction)_ _
Non-operating income_ _
Deductions, items 536541 (1.-S.C. C.)
982,292
85
374,923 .
94
4,131,540 14,910,551
83
94
18
183.198
•
*
9.480
608,900
354,764
*
-Month of January- -12 Mos. End. Jan,311932.
1933.
1932.
1933.
Gross
$3,566,940 $4.010,859 $43.278,846 $49,425,815
Bal. after oper. exps.,
mainten, and taxes_ _ 1,806,257
2,068,357 21,863,253 24,942,152
Net incom available for
dii.s after all charges
6,308,265
3,457,932
and reserves
1.200,000
1,200.000
Preferred dividends
5.108,265
Avail,for common stock
2,257,932
Common shares, excl. in
1933 15,373 held in
1,750,888
1,735,515
system
ParLast complete annual report in Financial Chronicle Mar. 11 '33, p. 1713
Baton Rouge Electric Co.
1932.
1933.
12 Mos. Ended Jan. 31$1,445,409 $1,425.179
Gross earnings
516,512
508,101
Net operating revenue
236,034
219,596
Bal, for diva. & surpl. (after prov. for retire res.)
tarLast complete annual report in Financial Chronicle Mar. 4 '33, p.1545
5,228,862
def497,902
*
203,338
Balance
Kilometers operated__ _ _ 11.368.719 11,533.619 11.368.719
• Due to changes in classification, figures not available.
British Columbia Power Corp., Ltd.
11,533.619
Gross earnings
Operating expenses
(The) Philippine Railway Co.
r Month of DecemberGross operating revenue
Oper. expenses & taxes_
1932.
$70.381
53.200
1931.
$68,582
39,856
1930.
$65,223
38.053
1929.
$85.674
48.344
Net revenue
Int. on funded debt_ __ _
$17,181
28.497
$28.726
28.497
$27,170
28.496
$37,330
28,496
def$11.316
Net income
Inc. approp. for inv. in
4,835
physical property _ _ _ _
$229
def$1,326
$8,833
27.264
39,096
21,502
$12,668
Dr.$16.151
Balance
12 Mos. End. Dec. 31
Gross oper. revenues_ _ _ $567.835
423,893
Oper. expenses & taxes_
$27,035
$40,422
$614,014
435,886
$686,328
514.257
8770.107
544.735
Net revenue
Int, on funded debt_ _ _ _
$143,941
341,960
$178,128
341.960
$172,070
341.960
$198,019
$163,832
$169,889
$116,588
2,524
41,856
76.293
28,214
$559,728
8604,834 $3.463,921 $3,859,241
Net earnings
101 Last complete annual report in Financial Chronicle Oct.8 '32, p. 2489
Cuba Company.
(And Subsidiaries)
1932-6 Ifes.-1931.
Period End. Dec.31- 1932-3 fos.-1931.
$1,387.335 $1,619,958 $3,146,260 $4,547,420
Gross revenue
Expenses, interest, tax,
4,909,521
4.702,302
2,048,745
2.210,557
depreciation, &c
$225,371
341,960
-Dr
Net income
Inc. approp. for inv. in
physical property_ __ _
$144,802
$246.182
$205,687
8200.543
-Dr
Balance
p. 3092
tartest complete annual report in Financial Chronicle Apr. 23'32,
New York City Street Railways.
(As Flied with Transit Commission)
Deductions
Gross
Operating
Income. from Income.
Income.
Companies
Brooklyn & Queens--Nov '32 1,497,444
Nov '31 1,679,003
5 months ended Nov '32 7,457,755
Nov '31 8,556,820
263,314
Brooklyn Bus Corp----Nov '32
252,450
Nov '31
ended Nov '32 1,326,523
5 months
833,237
Nov '31
62,177
Eighth & Ninth Ayes.Nov '32
79,892
Nov '31
(Receiver)
335,969
ended Nov '32
5 months
406.062
Nov '31
308,092
'Fifth Avenue Coach.Nov '32
426,834
Nov '31
5 months ended Nov '32 1,812,530
Nov '31 2,365,219
Interboro Rapid Transit
__ _Nov '32 3,934,750
Subway Division_
Nov '31 4,269,991
5 months ended Nov '32 18,272,917
Nov '31 19,999,493
'32 1,151,591
Elevated Division__ Nov_
Nov '31 1,370,580
5 months ended Nov '32 5,876,777
Nov '31 6,940,748
539,062
Hudson & Manhattan__Nov '32
626,214
Nov '31
5 months ended Nov '32 2,587,347
Nov '31 3,100,722
35,679
Manhattan ts Queens ___Nov '32
39,238
Nov '31
177,784
5 months ended Nov '32
207,268
Nov '31
59,880
New York & Barlem___Nov '32
65,195
Nov '31
270,648
5 months neded Nov '32
301,078
Nov '31
51,616
NY .4 Queens County__Nov '32
62,779
Nov '31
(Receiver)
242,147
5 months ended Nov '32
331,966
Nov 31
376,048
Nov '32
N Y Railways
418,897
Nov '31
5 months ended Nov '32 1,991,078
Nov '31 2,300,287
Nov '32 2,664,689
N Y Rapid TransIt
Nov '31 2,836,366
5 months ended Nov '32 13,405,535
Nov '31 14,301,663
69,755
Nov '32
South 13klyn Ry Co
Nov'3174,793
404,361
5 months ended Nov '32
468,582
Nov '31
47,419
Nov '32
Steinways Rys
56,611
Nov '31
(Receiver)
231.055
5 months ended Nov '32
284,398
Nov '31
164,253
Surface Transportation _Nov '32
176,858
Nov '31
852.333
5 months ended Nov '32
914,001
Nov '31
904,870
Nov '32
Third Ave System
Nov '31 1,078,992
5 months ended Nov '32 4,659,538
Nov '31 5,522,542
358,652
345,336
1,691,068
1,713,041
31,024
46,690
134,447
124,004
-6,877
2,787
-28,481
14,507
19,463
71,541
272,011
452,328
1,559,306
1,892,540
6,185,846
7,507,565
-17,027
132,377
143,182
688,330
383,160
472,331
1,828,845
2,239,326
9,221
-523
40,710
36,062
126,319
121,109
606,038
563,605
7,557
10,530
31,231
42,466
63,214
59,857
361.441
386.778
1,055,225
1,084,853
5,063,765
4,943,366
20,313
22,181
146,200
171,327
7,326
8,300
20,645
16,363
23.521
22,831
131,060
134,820
219.340
271,135
1,113,342
1,321,093
161,286
176,014
833,787
797,866
13,573
18,437
76,716
84,795
7,384
7,647
36,646
38,302
525
762
3,221
3,716
Net Corp.
Income.
197.366
169,322
857,281
915,175
17,451
28,252
57,730
- 39,209
-14,261
-4,860
-65,127
-23,795
18,937
70,779
268,790
448,612
475,568
1,083,738
348,272
1,544,268
763,392
5,422,454
6,040,102 1,467,463
459,654 -476,681
465,097 -332,720
2,280,504 -2,137,322
2,328,689 -1,640,359
68,741
314,419
137,421
334,909
259,682
1,569,163
564,597
1,674,729
-982
10,203
-10,876
10,353
-10,308
51,018
-16,295
52,357
62,419
63.000
57.656
63,453
285,279
320,759
245,774
317,831
4,731
2,826
-13,261
23,791
-19,282
50,513
-78.107
120,573
173,687 -110.473
-81.060
140.917
870,487 -509.046
704,088 -317,310
467,543
587,683
508,341
576.512
2,944,699 2,119,066
2,882.314 2,061,053
9,663
10,650
10,431
11,749
93.359
52,841
111,343
69,983
1,701
5,625
2,530
5,770
-9.446
30,091
-12,989
29,352
-3.650
27.171
4.069
18,762
-11,297
142,357
40,494
94.326
6.961
212.379
50 326
220.809
33.491
1,079,851
1,104,211
216,882
INDUSTRIAL AND MISCELLANEOUS.
Alaska Juneau Gold Mining Co.
1933-2 fos.-1932.
Period End. Feb. 28- 1933- t.fcrnth-1932.
$483,500
$529,000
$249,500
$234,500
Gross profit
138,700
127.700
53.500
72.700
Net profit *
operating expenses and development charges but before depre• After
ciation, depletion and Federal taxes.
-Month of January- -7 Mos. End. Jan. 311932.
1932.
1933.
1933.
$1,135,623 $1,281,321 $7,669,563 $8,450,563
575,895
676.487 4,205,642 4,591.322
$362,101
$428,787 $1,556,042
$823,222
x Loss
x Before subsidiary dividends and minority interest.
Chronicle Sept. 24 '32, p. 2169
KarLasl complete annual report in Financial
Duquesne Light Co.
12 Mos. End. Dec. 31-Gross earnings
Operating exps., maintenance & taxes
1931.
1932.
$25,223.690 $27,805,534
9.225,120
8,942.876
Net earnings
Other income-net
816,280.814 $18,580,414
982.038
999,825
Net earnings, including other income
Income charges-net
Retirement reserve
Amortization of debt discount & expense
$17,280,639 $10,562,452
3,059,880
3,265,929
2,224,442
2,017,895
142,430
163.104
Balance
Preferred dividends
-cash
Common dividends
Common dividends-stock
$11.833,711 $14,135,700
1.375.000
1,375,000
8.505,000
9,687.726
1,06:1.120
8770.985 33,192.580
Surplus
East Kootenay Power Co., Ltd.
Gross earnings
Operating expenses
--Month of January-- -10 Mos.End. Jan.311932.
1933.
1932.
1933.
$403,679
$357,397
$33,264
$37,973
145,778
16,921
117.183
12,954
$257,901
$240,214
$21.052
$20,310
Net earnings
=Last complete annual report in Financial Chronicle June 18 '32, p. 4491
Eastern Steamship Lines, Inc.
Operating revenue
Operating expense
Operating deficit
Other income
Other expense
-Month of January--12 Mos. End Jan.311931.
1932.
1932.
1933.
$587,474 $9,556,673 $10,712,966
$536,173
8,266,899 8,940,353
616,763
565,322
1,772,613
1,289,774
29,289
29,149
104,274
94.277
6.996
7.191
728,663
849,642
59,460
81.333
$534,409 $1,148,224
$81.753
$103,291
Net deficit
-Last complete annual report in Financial Chronicle Apr. SO 32, p. 3281
07
El Paso Electric Co.
1932.
1933.
12 Mos. Ended Jan. 31$2,721.878 $3.367,419
Gross earnings
1,474,778
1,14:1,259
operating revenue
Net
798,463
469,750
Bal. for divs. & surpl. (after prov. for retire. res.),,
ItarLast complete annual report in Financial Chronicle Mar. 4 '33, p. 1546
Engineers Public Service Co.
Gross earnings
Operation
Maintenance
Taxes
(And Constituent Companies)
--12Mos.End. Jan.31--Month of January
1932.
1933.
1932.
1933.
83,676.917 34.156.820 $44,355.174 $50,751,735
1.375.675
1,636.678 17.648.658 21.124.512
2.933.023
2.439.033
216.631
174.617
4.043.647
350.189
346.999 3,974,614
Net operating revenue $1.776.435 31.956.511 820.292,868 $22,650.551
1.351,093
1.220.256
113.257
115,510
Inc. from other sources x
$1.891,945 $2.069.768 821.643.962 823.870.807
Balance
8.468.334
8.697.030
719.035
730,415
Interest & amortization_
$1,161,529 $1,350,733 $12.946.931 $15,402,473
Balance
4.663.795
4,575.260
Reserve fore retirements
Balance
Divs, on pref. stock of constituent companies_ ___
88.371.671 $10,738,677
4.338.948
y4.334.819
84.036,851 86.399,728
Balance
Amount applicable to common stock of constitu58,823
21.060
1- hands of public
ent companies
$4.015.791 $6,340.905
Balance for dividends and Surplus
2.323.546
2.323,549
Divs, on pref. stock of Engineers Pub. Sexy. Co
$1.692,242 34,017.359
stock. dive. & surplus
Bal. for common
$2.10
Earnings per share of common stock z
(1932Interest on funds for construction purposes of $931,509.61 Includes
es
y
investments.
es
$7_9.548.51) and Income from miscellaneous invtm
10.3%30
cumulative dividends not paid of $665,490. z After deducting
9.2%) of gross earnings for retirements. for which records .re available,
During a period averaging about 28 years
far maintenance a
the companies in the Engineers group have expended
period, and In addition
total of 9.3% of their entire gross earnings for the total of 10.4% of such
or retained as surplus a
have set aside for reserves
earnings.
Feb. 11 '33, p. 1014
ilarsI complete annual report in Financial Chronicle
Financial Chronicle
Volume 136
1707
Federal Mining & Smelting Co.
Oppenheim, Collins & Co., Inc.
Tons Shipped-Quarters Ended.
Jan. 31 1932.
Oct. 31 1932.
Jan. 311933.
4,010
Nov. 1931
Aug. 1932
3,585
Nov 1932
3,988
Dec. 1931
42
Sept. 1932
3,896
Dec. 1932
3,995
Jan. 1932
55
Oct. 1932
4,238
Jan. 1933
_
11,993
Total
Total
97
11,719
Total
Net Losses Before Depletion, Depreciation, Income Taxes and Year-End
Write-Offs-Quarters Ended
Jan. 31 1932.
Oct. 31 1932
Jan. 311933.
Nov. 1931_ _ _ $32,387
Aug. 1932_ ...x$22,203
Nov. 1932_ _ - $21,573
Dec. 1931_ _ _ 27,591
Sept. 1932.. _ _ 57,242
41,254
Dec. 1932_ _ Jan. 1932_ _ _ 42.345
Oct. 1932_ _ _ 52,288
Jan. 1933_ _ _ 31,631
-$102,323
Total
Total
$87,326
Total
$94,458
x Profit.
10 Last complete annual report in Financial Chronicle Mar. 1/ 33, p.1724
6 Mos. End.Ja n. 311932.
1931.
1933.
1930.
Net profit after taxes.
charges, &c
$165,340
$463,465
loss$162.758
8748.403
10 Last complete annual report in Financial Chronicle Sept. 2 '32, p. 2184
First Chrold Corp.
Jan. '33.
$6,970
27
Gross operating loss
Expenses
Feb. '33.
$24,510
23
Total.
$31,481
50
831,531
824,534
Net loss
$6,997
a'Last complete annual report in Financial Chronicle Mar. 11 '33, p. 1724
(The) Orange & Rockland Electric Co.
-Month of January- -12 Mos. End. Jan.311932.
1933.
1932.
1933.
$770,371
8744,622
568,187
564.867
Operating revenues
°Per. exp., incl. taxes.
but excl. depreciation_
Depreciation
34.881
7,563
37,932
7,386
405,077
88,809
407,120
86.945
Operating Income.__ _
Other income
$22,423
2,518
$22,869
1,260
8250,736
30,574
8276,306
22,737
Gross income
Int. on funded debt_ __ _
$24,941
5,208
$24,129
5,208
$281.310
62,500
3299.043
62.500
Balance
Other interest
Amortization deductions
Other deductions
Divs. accr. on pref. stk_
Fed'l income taxes incl.
in operating expenses_
$19,733
1,148
333
8.140
$18,921
30
1,053
333
6,152
$218,810
1.000
13,489
4,331
90.103
$236.543
1.322
12,626
4,396
73,678
3,050
2.675
33,900
32,725
Philadelphia Co.
Gulf States Utilities Co.
1932.
1933.
12 Months Ended Jan. 3135,285.435 $6,270,363
Gross earnings
2,761,180
2,298,575
Net operating revenue
Balance for dividends and surplus (after provision
1,226.531
749,986
for retirement reserve)
'Last complete annual report in Financial Chronicle Mar. 4 1933, p. 1546
(The) Key West Electric Co.
1932.
1933.
12 Months Ended Jan. 31$207.909
3182.463
Gross earnings
88,885
71.057
Net operating revenue
Balance for dividends and surplus (after provision
59.432
23,739
for retirement reserve)
rirLtut complete annual report in Financial Chronicle Mar.4 1933, p.1547
Loblaw Groceterias, Ltd.
Period Ended Feb. 4- 1933-4 Wecks-1932. 1933-36 1Veeks-1932.
$1,066.886 $1,153,320 89,772,259 310,479,037
Sales
Net profit after all chgs.
690,877
598.016
82,382
64,846
and income taxes_ _ _ _
lig"Last complete annual report in Financial Chronicle Aug. 6 '32, p. 998
Louisiana Steam Generating Corp.
1933.
12 Months Ended Jan. 3182,188,733
1932.
$2.353.141
Gross earnings
663.422
710,163
Net operating revenue
la"Last complete annual report in Financial Chronicle Mar. 4'33, p. 1547
Louisville Gas & Electric Co. (Del.).
(And Subsidiaries)
12 Months Ended Dec. 31Gross earnings
Operating expenses, maintenance and taxes
1931.
1932.
$9.958,117 $10.714,011
4,798,223
4,699,189
Net earnings
Other Income
it'
Net earnings including other income
Interest charges-net
85,258,928 $5,915.788
449,079
438,088
Balance
Preferred dividends
Retirement and depletion reserves
Amortization of debt discount and expense
Common dividends
84,163,219 $4.779,230
1,367.858
1,354.809
892,500
930.000
145,237
141,795
1.577,283
1,577,297
Surplus
$5,697,016 $6,364,867
1,585.637
1,533,797
$159,318
$796,352
(The) Nevada-California Electric Corp.
(And Subsidiary Companies)
-Month of January- -12 Mos.End. Jan.31
1932.
1933.
1932.
1933.
Gross operating earnings 3398.635
3447,569 35,011,678 $5,622.562
210,714
169,736
Maintenance
15,333
13.975
434,363
405.224
Taxes(Inci.Fed. Inc. tax)
43.731
35,010
2,083.367
Other oper. & gen. exps_
162,493
138.115
1,711,917
Total oper.& gen. exps.
& taxes
3221.557 52.286.878 52,728,445
5187.101
2.894.117
2.724.799
Operating profits
226.012
211.533
102,887
76,801
Non-oper. earns. (net)
3.500
1,862
Total income
$229.512 $2,801,601 $2397.005
$213,396
1.540341
1362.140
Interest
129.801
129,965
Balance
$99,711 31,239,460 $1,456.163
583.430
Depreciation
743,457
60.385
682.774
62.565
Balance
$496,003
$39,325
8773.389
820.865
Disc. & exp. on sec. sold
103,894
107,703
9,235
8,799
Miscell. additions & dedeductions (net Cr.)...
205,907
x640
47,947
9,195
Surplus available for
retlemp. of bonds,
divs., &c
829,448
$594,207
$717,442
521.261
x Net debit.
New York Railways Corp.
-Month of December- -12 Mtn. End. Dec. 311932.
1931.
1931.
1932.
$446,663 S4864.055 $5,417.668
Gross earnings
$406.866
Balance after taxes
55,727
636.108
712.102
51.516
*Deficit after charges
5,538
87,126
37.126
6.387
* These figures Include bond interest and sinking fund requirements of
certain controlled companies (for which New York Railway Corp. states
It has no liability) which are in default and excludes interest on income
bonds which has not been declared.
larLast complete annual report in Financial Chronicle Mar. 5 '32, p. 1751
Northern States Power Co. (Del.).
(And Subsidiaries)
1932.
1931.
P12 Months Ended Dec. 31
earnings
532,338,694 534,055,868
Gross
16,405,369 16.202.484
Operating expenses, maintenance and taxes
315333.325 517.753,384
Net earnings
99,011
150.256
Other income
816332.336 317.903.640
Pe Net earnings, including other income
-net
5.761.351
5.742.274
Interest charges
310,270.985 312.161.366
Pt Balance
5,105.688
5,070.567
Preferred dividends
2,900.000
2.900.000
Retirement reserve
180.000
153.750
Amortization of debt discount and expense
2.901.137
3,315.614
Common dividends
25.237
25,237
Minority interest
def$841.077
$696,198
Surplus
-Annual requirements for dividends on common stocks at present
Note.
rate of 6% per annum Is $2,486.806.
(And Subsidiaries)
12 Months Ended Dec. 31Gross earnings
Operating expenses, maintenance and taxes
1931.
1932.
$47.752.050 356,036.779
24,818,264 27,855,898
Net earnings
Other income
322.933.786 $28,180,881
1,418,052
1,489,478
Net earnings,including other income
$24,351338 $29,670,359
Interest charges, rentals, contract payments and
miscellaneous income charges
8,531.171
8,511.440
Balance
Preferred dividends
Retirement reserve
Amortization of debt discount and expense
Common dividends
Surplus
$15.820,667 $21,158,919
3,719,816
3,710,778
6,519,217
6,386.806
382,644
361,417
7,680,224
6,720.232
def.$1,388,831 $2.887,283
•
Puget Sound Power & Light Co.
12 Mos. End. Jan. 311932.
1933.
Gross earnings
813,367,842 $15,605,720
7.293.649
6,461,632
Net operating revenue
Bal. for dive. & surplus (after provision for
retirement reserve)
3,064,328
2,433,831
Last complete annual report in Financial Chronicle Mar. 4 '33, p. 1548
(The) Pullman:Co.
-Month of January- -12 los. End. Dec. 31
1931.
1932.
Sleeping car operation1932.
1933.
Berth revenue
32.836,832 33,897.753 $37,300.745 554.472,635
Seat revenue
6,807,525
4,539.620
485.450
333.982
1.330,925
854,886
Charter of cars
81,344
49,181
9,242
5,981
Miscellaneous revenue
1.001
def.387
2,215,111
Car mileage revenue......
198,791
2,510,487
152,656
Contract revenuo-Dr
133.934
2,572.745
1,549.960
163,785
Total revenues
83,208,480 84,530,406 $43,366,385 362,558,071
2,043,483 20.024,370 26,202,854
Maintenance of cars..,
1,510,677
460,390
407,722
All other maintenance
34,573
35,058
2,062,499 19,275.157 27.386,482
Conducting car opers_ _ _ 1,418.416
3,193,737
2.756,312
General expenses
247.093
213,460
Total expenses
83,177.613 84.387.650 342.463,562 357.243,465
Net revenue (of def.)..
Auxiliary operations
Total revenues
Total expenses
$30.866
$142.755
69,420
69,037
$902.822 55,314.605
85,187
72,250
Net revenue (or def.)_
$363
$31,229
150,648
$155 692
190 723
1,125,435
1,032,663
36.111
312,937
Total net rev.(or def.)
Taxes accrued
829,656
823,545
392.772
$908.934 35.407378
2.397,953
2.127,888
Oper. income (or loss)df3119,418 def.$35,030 df.$1218,954 $3,009.425
Savannah Electric & Power Co.
1932.
1933.
12 Mos. End. Jan.3131,879.058 $2,051,872
Gross earnings
1,019.947
909.705
Net operating revenue
Balance for dividends & surplus (after pro349.795
587.954
vision for retirement reserve)
PrLast complete annual report in Financial Chronicle Mar. 4 '33, p. 1549
Southern Colorado Power Co.
12 Months Ended Dec. 31Gross earnings
Operating expenses, maintenance and taxes
1932.
31.818.193 $2.105,078
1,096,556
974,423
Net earnings
Other income
$843,770 $1,008,522
1,954
329
Net earnings including other income
Interest charges-net
$844,099 $1.010,476
434,400
434,324
$576,152
$409.699
Balance
290.683
297,773
Preferred dividends
73,183
58,379
Appropriations for retirement reserve
45.833
Class A common dividends
220,000
on class A common stock discontinued as of April 30
Note.-DIvidends
1932.
Truax-Traer Coal Co.
V Period End. Jan. 31- 1933-3 Mos.-1932.
1933-9 Mos.-1932.
Net loss after deprec.,
473,131
$192,117
deplet. & int. charges_
874.397
$78.868
x Before allowing for a discount of $47,411 realized on debentures retired.
tarLast complete annual report in Financial Chronicle June 25 '32, p. 691
Virginia Electric & Power Co.
1933.
12 Mos. End, Jan. 311932.
Gross earnings
515,286.508 $16,875.069
Net operating revenue
7,314,128
7,764.892
Balance for dividends & surplus (after provision for retirement reserve)
3,610.978
3.886.884
rarLast complete annual report in Financial Chronicle Mar. 4 '33, p. 1550
(The) Western Public Service Co.
'
1932.'
12 Mos. End. Jan, 311933.
Gross earnings
$2,025,953 32,462,157
Net operating revenue
932.751
701.515
1
Balance for dividends & surplus (after pro215,957
vision for retirement reserve)
def4,062
rarLast complete annual report in Financial Chronicle Mar. 7 '32, p._3460
1708
Financial Chronicle
FINANCIAL REPORTS.
•
Stone & Webster, Incorporated.
(Annual Report-Year Ended Dec. 31 1932).
The report to stockholders states in substance:
Results.
-The net income of $1,524,085 disregards net profit on sales
during 1932 of securities owned the first of the year, all of which were
' at that time written down to their then market or fair values. The profit
on these sales was carried directly to surplus. Net consolidated income in
1931 amounted to $3,291,785 or $1.56 a share, excluding losses on the sale
of certain securities acquired prior to 1931 and charged to reserves set up
on Dec. 31 1930.
On Dec. 31 1932, the market or estimated fair value of the consolidated
holdings of securities (excluding capital stocks of subsidiaries) of Stone &
Webster, Inc. and its subsidiaries other than the Engineers Public Service
Co. group was $607,800 less than the amount at which carried on the books
of the owning companies. Securities held by Engineers Public Service Co.
and its subsidiaries are carried at cost as heretofore.
During the year, consolidated current asset position was substantially
Improved, Consolidated notes payable were reduced from $14,678,521 to
$6.800,935. Notes payable of Stone & Webster, Inc., the parent corporation, which stood at $1,900,000 on Dec. 31 1931 were paid off during the
year. Consolidated cash balances on Dec. 31 1932 were $8,079.667, a
reduction of $170,667 from the previous year. In 1933 the corporation
and its subsidiaries have only one bond maturity, a $1,924,000 issue of
Puget Sound Power & Light Co.
Stone & Webster Engineering Co. and Subsidiaries.
-The engineering and
construction activities carried on by the organization are directed by the
Stone & Webster Engineering Co.. of which all the capital stock is owned by
Stone & Webster, Inc.
The balance of earnings applicable to this stock amounted to $24,866
for the year 1932 as compared with $594.413 for the year 1931.
A large part of the reduction in earnings is due to a substantial decrease
In the volume of construction work completed by the Engineering company's subsidiaries during the year. Although the earnings from expert
consulting engineering services covering reports and appraisals and studies
In connection with corporate developments and reorganizations also decreased, these earnings represented a larger proportion of the total than in
the prior year. Of the total work carr:ed out approximately 94% was for
companies in no way affiliated with Stone Az Webster.
The principal subsidiary of the Stone & Webster Engineering Co. is the
Stone & Webster Engineering Corp.. of which the Engineering company
owns all of the preferred stock and 90% of the common stock.
During 1932, the Engineering corporation contracted with a number of
utility and industrial concerns to provide consulting engineering and construction services on a continuing basis. Under these contracts, she
corporation is at present employed on a considerable amount of consulting
engineering work. Furthermore, it is anticipated that when there is need
for additional or improved facilities on the part of these clients the Engineering corporation will be called upon for the necessary construction services.
Stone & Webster Engineering Co. owns 90% of the stock of A. L. Hart
ridge Co., Inc., a subsidiary which is engaged in building construction only.
Early in 1932, this subsidiary completed the construction of an eight
story office building and during the year started the construction of another
building of 32 stories, both buildings being located in downtown New York.
There is also an ownership of approximately 50% in William McClellan
& Co., Ltd., which was organized to undertake engineering and construction work in Canada. It produced no earnings in 1932 but its expenses
were nominal.
Stone & Webster and Blodget, Inc.
-There has been no change during
1932 in the ownership by Stone & Webster, Inc. of 82.34% of the capital
stock of Stone & Webster and Blodget Inc.
The corporation's business during the year, on account of prevailing
conditions, was curtailed in volume and restricted largely to the purchase
and sale of municipal and first grade public utility bonds. Operating
expenses were reduced substantially and for the year amounted to approximately 50% of the cost of conducting the business in the preceding year.
The larger part of this reduction was effected in the early part of the year,
and subsequent to July the business was conducted on a profitable basis.
Operations for the year resulted in a loss of $198,922, of which $163,801
Is applicable to the portion of the stock owned by Stone & Webster, Inc.
Net profit of $78,381 on sales during the year of securities owned the first
of the year and written down to their then market or fair values was
carried directly to surplus and has been disregarded in the above statement
of operating results. Likewise operating results do not take account of
depreciation of $210,002 in the value of securities owned at Dec. 31 1932
as the company does not use the inventory basis for its security holdings.
The year 1931 resulted in an operating loss of $1,067,842 applicable to
the portion of the stock owned by Stone Az Webster, Inc. This figure was
before losses taken during the first six months of the year on certain securities acquired prior to 1931, charged to reserves set up on Dec. 31 1930, and
was based on written-down values as of June 30 1931 with respect to securities on hand at that date sold during the last half of the year. Because of
these adjustments in 1931, the figures for the years 1931 and 1932 are not
strictly comparable.
Stone di Webster Service Corp -The entire capital stock of this corporation
is owned by Stone & Webster. Inc. It provides supervisory services in the
organization, development and operation of public utility properties, and
consulting services in connection with financial problems of public utilities,
incl. reorganiTations and adjustments of corporate and capital structures.
Earnings for 1932 applicable to the stock were $150,848, which compares with $324.815 for the prior year. The decrease in earnings is accounted
for in part by the decline in public utility earnings but principally because
during 1931 the supervisory work which was performed by this corporation
for the constituent companies of Engineers Public Service Co. was taken
over by that organi7ation.
Stockholders will be interested to learn that on Jan. 10 1933. a contract
was entered into which provides for the immediate assumption by this
organization of the supervision of the business of the Consolidated Electric
Gas Co.and of the operation of that company's subsidiaries, with the exception of Seattle Gas Co. This arrangement covers utility properties with
gross earnings of approximately $20,000,000.
CONSOLIDATED EARNINGS FOR YEAR
1932.
$50,983,871
Gross earnings
Operating expenses
23.686.872
Taxes
d4,543,603
Interest and amortization of debt discount and expense
9,254.547
Appropriations for retirement reserves 4,958,576
Losses on write-off of miscell. investments, &c
ENDED DEC. 31.
1931.
a1930.
$59,522,087 152,509.294
29,904,041 30,472,642
d4,762,065
9.086.109
b5,019,846
6,208,246
3,905,637
461.863
Balance
$8,540,272 $10,288,162 $11,922,768
6,873,424
Preferred dividends of subsidiaries_ e6,868,355
4,995,622
Balance
$1.671,917 $3.414,738 $6.927.146
Amount applic. to minority Interest
147,832
122,954
in common stocks of subsidiary__ _
496,823
Balance applicable to capital stock
$1,524,085 $3,291,785 $6,430,323
of Stone Az Webster, Inc
Profits on sales of securities less FedSee c
780,836
deral taxes, carried direct to surplus
$1,524,085 43.291,785 $7,211,159
Total net earnings and profits
Average shares outstanding during the
2,104,500
2.104,500 1,888,694
period
$1.56
Earnings per share
$0.72
$3.82
I.- a Including earnings of Engineers Public Service Co. of Sierra Pacific
Electric Co., and of their subsidiaries for nine months only.
,... b For 1931 no retirement reserve was made in the case of two public
utility operating companies which had made such reserves aggregating
$280,000 for 1930 and the reserve for one other company was $102,000 less
than for 1930. these companies having accumulated reserves which, In the
opinion of their respective boards of directors, were already adequate for
retirement purposes.
c Earnings shown above are before losses of $1,270,304 on sales of
certain securities acquired prior to 1931. charged to reserves set up on
March 11 1933
Dec. 311930, and before allowance for any shrinkage in value of securities
still owned at Dec. 31 1931. Profits and losses on securities owned by
Stone & Webster and Blodget, Inc., on June 30 1931 and sold during the
last half of the year were based on written-down values as of that date.
d Includes Federal taxes of $532,917 in 1932 and $726,688 in 1931.
e Includes cumulative dividends of $665.475 on preferred stock of a
subsidiary com, y unpaid or not declared.
,
Note.
-The 1932 earnings as stated above do not take account of the
difference between book and market or estimated fair value of securities
owned.
CONSOLIDATED SURPLUS ACCOUNT (MINORITY INTEREST
EXCLUDED) YEAR ENDED DEC. 31 1932.
Dec. 311932.
Paid in
Earned
Surplus.
Surplus.
Surplus, Jan, 1 1932
$22,004,627
Net income for year 1932 applicable to stock of
Stone & Webster, Inc.
$1,524,085
Net profit on sales during the year of securities
owned the first of year and written down to
their then market or fair values, &c
97,070
Miscellaneous direct charges and credits to surplus,
such as premium and discount on bonds of subsidiaries retired, unamortized discount and expense thereon, &c
117,227
Cumulative dividends on preferred stock of a subsidiary company not declared but deducted in
determining net income as shown above
665,475
Total
$22,101,697 $2,306,788
Dividends789,100
Surplus, Dec. 31 1932
$22101.697 x$1,517,688
x See note on accompanying balance sheet regarding cumulative dividends on preferred stock of a subsidiary company unpaid or not declared.
COMPARATIVE CONSOLIDATED BALANCE SHEET.
Dec. 31 '32. Jan. 1 '32.
Dec. 31'32. Jan. 1 '32.
Assets
Liabilities
Prop.and plant_347,422,482 346,973,296 b Bonds, mtgee.
a Securities_ _ _ _ 19,885,388 21,460,878 & coupon notes
Cash
8,079,668 8,250,334 (subsidiaries)_l61,704,300 157,294,300
Notes receivable
603,720 c Notes payable 6,800,935 14,678,521
880,466
Accounts receiv_ 8.146,134 9.203,727 Accounts pay
1,941,789 3,083,263
Accounts reedy.
Accrued interest,
--underlong term
taxes, &c____ 4,989,422 4,170,930
Divs. declared
contr, and for
54,481
subs, to stock
(subsidiaries).
587,871
of subsidiaries
503,763 Unad.i. credits__
495,411
435,608
462,549
Materials a,supp 2,587,103 3,158,307 Retirem. reserves 25,024,431 25,392,796
571.214 Other reserves__
Prepayments...
316,656
305,244
342,999
Unamort'd debt
Contributions for
disc, and exp. 8,703,987 8,517,271
506,617
extensions
476,708
485,699
Sundry assets
432,227 Capital stk. sub734,317
Unadj. debits._
935,364 scribed (subs.)
37,791
3,761
Pref. capital stk.
(subsidiaries)_114,196,721 114,182,350
Prem. on stock
107,503
(subsidiaries).
49,519
Minority int. in
corn.cap.stks.
& surp.of subs 7,205,099 7,787,893
d Cap. stock &
scrip (2,104,500shares)___ 50,000,000 50,000,000
Surplus
Paid-in
22,101,697 22,004,627
egarned (since
Jan. 1 1932) 1,517,687
397,737,311 400,610,103 Total
Total
397.737,311 400,610,103
a On Dec. 311932. the market or estimated fair value of the consolidated
holdings of securities (excluding capital stocks of subsidiaries) of Stone &
Webster, Inc. and its subsidiaries other than the Engineers Public Service
Co. group was $607,800 less than the amount at which carried on the
books of the owning companies. On Jan. 1 1932, consolidated security
holdings other than those of the Engineers Public Service Co. group were
stated at market or estimated fair value incident to the reduction of the
corporation's capital. Securities held by Engineers Public Service Co. and
its subsidiaries are carried at cost.
b Excludes $8,765,000 (1931-$8,097,000) bonds of subsidiary companies
held in sinking funds and in escrow, uncanceled. Also excludes $5,000,000
principal amount of Virginia Electric and Power Co., first and refunding
mortgage 5% bonds due Oct. 1 1955, pledged as security for $4,000,000
principal amount of 10 year 514% secured convertible gold bonds issued
March 1 1932, which are convertible March 1 1933 and thereafter, into a
like principal amount of the pledged bonds. The company agrees to Pay
upon conversion $50 cash per $1,000.
c Includes collateral loans of $3,160,000 (1931-$4,100.000).
d 6,870 of these shares (1931-10,053 shs.) held by a subsidiary and
included in securities at $70.417 (1931-$103,043).
e Before provision for $665,475 cumulative dividends on preferred stock
of a subsidiary company unpaid or not declared.
Note.
-The Federal income taxes for the years 1926 to date in the case
of certain subsidiaries have not yet been finally settled. No provision has
been made in the above balance sheet for any additional taxes which may
have to be paid in excess of claims for refunds which have been filed.
136, p. 1218.
General Motors Acceptance Corp.(& Subs.).
(Annual Report-Year Ended Dec. 31 1932.)
RECORD OF EARNINGS CALENDAR YEARS.
1932
1931.
1929.
1930.
$
$
8
$
Total volume
412,527,089 745,039.762 911,491,744 1133117,431
29,805,733 43,532,836 56.763,812 60,536,016
Gross income
Oper. exps., taxes, losses, loss
reserve,&c
16.734,077 24,872,335 26,170.104 27,415,922
Interest and discount
6.805,533 9,681,381 16,023,382 20,663,458
Net profit incl. dividends
6,266,103 8.979,120 14,570,326 12,456,636
Per cent, earn, on capital funds
7.97
11.13
18.5
17.88
COMPARATIVE CONSOLIDATED BALANCE SHEET DEC. 31.
1932.
1931.
1929.
1930.
Assets$
$
$
S
Cash
43,949,507 55,427,863 52,607,148 59,273,765
Notes and bills receivable
131,710,512 244,550,673 319,875,457 400.864,869
Accounts receivable
992,520 5,016,783
1,312,928
927,381
Furniture and equipment
336,594
528,343
854,604 1,319,102
Investments
x6,736.039 5.117.159 8.012,390 7,182.227
Deterred charges
774.305 1,629,670 2,394,594 8,858.954
Total
184,502,477 312,268,492 384,671,574 473,811,846
Liabilities
Capital stock
50,000,000 50,000,000 50,000,000 50.000.000
Surplus
20,000,000 20,000,000 20,000,000 20,000.000
Undivided profits
9,490,138 7,224,158 8,300,582 0,900,093
5% serial gold notes
19,258,000 25,000.000 30,000,000 35.000,000
6% debentures
Y29,903.000 37.953,000 43,083,000 45,500,0
00
Notes and bills payable
33,320,673 142,769,755 200,961.487 279,408,017
Accounts payable
5,177.050 5,219,516 5,535,999 3,121,943
Dealers' repossession loss reserves 8,786.630 9,122,107 6,820,471 8,132.370
Accrued interest payable
1,052,167 1,369,371 1,664,974 1,805,919
Accrued taxes payable
706,271
1,514,496 2,047,564 1,786,120
Unearned income
4,745,673 8,602,297 10,804,604 15,301,850
Reserves
2,062,874 3,493.792 5,452,894 6,855.533
Total
184,502,477 312,268,492 384,671,574 473,811.846
x General Exchange Insurance Corp. stock revalued at $6,730,039; other. 86.000.
y Called for redemption Feb. 1 1933 at 102.-V. 135. P. 3863.
Financial Chronicle
Volume 136
Pennsylvania Water & Power Co.
-Year Ended Dec. 31 1932.)
(23rd Annual Report
Charles E. F. Clarke, President, in his report to stockholders, in part says:
It is gratifying to note that the earnings per share for the year, after
interest on funded debt, amounted to $4.93 per share after charges for
renewals and replacements, as compared with $4.78 for 1931 and $4.55
for 1930.
Over 93.6% of the company's gross revenue was in the form of operating
revenue derived from bulk power Contracts with its customers. The company's business is thus largely that of an operating company generating
and selling electric power in bulk for use in a compact, highly diversified
territory, within relatively short transmission distance of the hydro and
steam plants, which supply its regional transmission system.
'
Of its expenses, totaling $2.056,701, taxes made up 20.8%, maintenance
expenses and provisions for renewals and replacements made up 33.5%,
Its operating expenses,including salaries and wages, materials and supplies,
administrative and office expenses, accounted for 45.7%. From earnings
for the current year(1932)there was credited to surplus the sum of$832,562.
The company has never written up above cost in its books the value
either of its plant or of its securities and in accordance with its conservative
policy looking towards the eventual writing off of discount and expense
on bonds and making such write-down in its investment securities as might
be warranted, the company over a period of years has been accumulating
or the above and other purposes a miscellaneous reserve which, at the end
of 1931. amounted to $912,871.
The company found itself in position to Carry along its construction work
during 1932 without additional financing. It has no bank loans and no
obligations maturing prior to 1940.
COMPARATIVE INCOME FOR CALENDAR YEARS.
1929.
1931.
1930.
1932.
Gross inc (all sources)_ _ $5,240,709 $5,064,070 $4,835,558 $4,755,757
1,686,074
1,609,360 1,625,339
Exp., maint., taxes, &c_ 1,670,664
352,102
355,151
358.407
Renewals& replacements
386,039
840,200
897,275
1,061,900 1,040.163
Interest on bonds
Net income
Dividends
Rate
Balance, surplus
Miscellaneous reserves_
Sinking fund
Equalization reserve_
$2,122,107 $2,056,141 $1,957,797 $1,877.381
1,289,544
1,128.351
1,289,544
1,289,544
($3.00)
($3.00)
($3.00) ($2.6134)
$832,563
$766,598
100,000
$668,253
120,000
$749,030
120,000
100,000
400,000
$148,253
$832,563
$666,598
$529.030
Balance, surplus
2,123,978 3.031,156 y2,343,635
879,948.
Profit and loss surplus
Shares capital stock out429.848
429,848
429,848
standing (no par)_ _429,848
$4.78
$4.37
$4.93
$4.55
Earn. per sh.on cap.stic.
y Includes $1,250,000 "reserve for sinking fund" transferred to surplus
during 1930. '
BALANCE SHEET DECEMBER 31.
1932.
1931.
1932.
1931:
Liabilities$
$
8
8
AssUsProperty account_28,523,644 29,782,941 a Capital stock-10,868,313 10,868.313
Secs. of other cos_ 3,587,020 2,382,020 1st mtge. bonds_ _11,113,000 11,212,000
Adv. to sub. cos-- 911,124 1,821,698 1st ref. mtge.430.11,250,000 11,250,000
209.818
290,892 Accounts payable_ 100,896
Materials & sum). 219,400
627,508
Investment securs. 4,619,340 4,741,031 Taxes accrued_- 730,379
548,197 Equalization ree've 1,249,800 1,424,800
Notes & accts. rec. 753,763
2,523,960 3.239,322 Res've for renewals
Cash
andreplacements 3,550.496 3,208,735
Cash in hands of
100,982
100,832 Accrued interest
trustees
168,750
168,750
19,840
9,017 on bonds
Prepaid charges
912,871
1.050,381
Miscall, reserve
Amortization debt
Profit and loss__ 2.123.978 3,031,156
died. & expense 946,918
Total
42,205,992 42,913,951
42,205,992 42,913,951
Total
.-V. 136, p. 1200.
a Represented by 429,848 shares no par)
Atlantic Refining Co.(& Subsidiaries).
(Annual Report-Year Ended Dec. 31 1932.)
CONSOLIDATED INCOME ACCOUNT FOR CALENDAR
1932.
1931.
1930.
YEARS.
1929.
Gross income
84,631,431 98,251,708 126,873,254 153,520,041
Raw materials, operating
and general expenses_ 66,304,366 83,483,266 107,614.915 121,086,691
Netincomefrom oper_ 18,327,065 14,768,442 19,258,339 32,433,350
989,746
1,347,604
1,376,792
Other income
673,618
Propor. of earns. of affil.
577.714
646,151
cos. not consolidated_ 1°68279,576 1oss332,689
Total income
Interest
Deprec. & depletion
Inventory adjustment
Insur.& other reserves_ Intangible develop. costs
Taxes,incl.Fed.tax (est.)
18,721,107 15,783,357 20,894,236 34,387,856
823,496
753,253
765,238
805,451
9,987,895 11,287,692 10,845,127 11,153,852
791,100 3,112,408
1.087,270
598,917
474,802
648,212
633,541
120,382 1,240,835
1,259,693
175,871
1,601,007 3,401,853
62,113,056 y1,598,723
513,750 2,742,688 17,332.418
3,918,021
Balance, surplus
59,803,014 61,876,574 64,608,436 46,233,459
Previous surplus
219,930 10,229,700
Paid-in surplus
Adj. ofsurp. not incident
109.333
122,830
to current period
63,843,865 62,499,656 67,571,054 73,795;577
Total surplus
700,000
Preferred dividends_
Common dividends....., 2,696,642 2,696,642 5,386,300 5,007,673
Dr308,181 Dr1,479,467
Adjustments
P.& L.sur. Dec.31-. 61,147,224 59,803,014 61,876,574 64,608,436
72,153
69,449
Deficit of minority int__ sur.2,719
75,008
Sim. corn. out. (Par $25) 2,696,642 2,696.642 2,696,642 2.681,980
$0.20
$1.45
$1.02
Earns, per sh. on com__
x$6.20
x Figured on average number of shares outstanding, namely 2,448,019,
the amount earned per share was $6.79. y In addition to this amount,
there was paid (or accrued) for State gasoline taxes the sum of $9,114,457.
z In addition there was paid or accrued for State gasoline and Federal
=
excise taxes the funnier 413,625.549.
CONSOLIDATEDVALANCE SHEET DEC. 31.
1931.
1932.
1932.
Lfabilfites/Asset8-1MM 3
$
xPlant, eq., &o_107,179,745 106,607,650 Common stock_ 67,416.050
Invest. oth. cos_ 8,628,098 10,582,236 ySub. cos. stock
Treasury stock_ 1,098,878 1,092,974 Bonded debt--_ 14,070,793
Marketable secs. 1,116.280 1,003,006 Purch. obliga'ns
(current) --524,000
Accts. and notes
75.500
receivable - 9,616,986 9,621,153 Federal tax_ _ _ _
Oil Inventories_ 18,366,898 21,743,746 Accts. payable_ 4,259.887
342,077
Mat'ls & suppl's 2,106,514 3,431,169 Accrued items _
334,274 0th. curr.
68,041
2,783
Due from empl's
8,606,323 5,103,995 Deferred Items_
212,290
Cash
174.885 Cap. & surp. of
268,239
0th. curr. assets
14,519
min. int._ _
793,998
613,973
Prepaid items- Oper. reserve- _ 9,607,570
61,144,504
Surplus
1931.
67,416,050
4,032
14,594,759
524.000
59,000
4,970.069
570,871
2.788
903,778
11,157,328
60,286,415
157,669,975 160,489,090
157,669.975 160,489,090 Total
Total
a After deducting depreciation of $65,972,143 459,459,009 in 1931)
and depletion and amortization of $3,971,302 ($3,728,249 in 1931).
-V. 136. p. 661.
y Capital and surplus of minority interests.
1709
Southern California Edison Co., Ltd..
-Year Ended Dec. 31 1932.)
(37th Annual Report
CONSOLIDATED INCOME ACCOUNT FOR CALENDAR YEARS.
1930.
1931.
1932.
9129.
System output (kwh.)-2856602,851 3061836,9773168973.397 3162988,030
Delivered to customers
317.656,246 325,159,500 311,056,784 279,364,581
Lighting(kwh.)
1969616,933 2226171,831 2617475.280 2311812,876
Power (kwh.)
444,059
467,098
481,824
488,848
Connected load meters_ 2.519,060 2.520,226 2.448.074 2,216,145
Connected load hp
-Results
$37,294,603 $40.750.689 $41.266.659 840.325.465
Gross earnings
9,181,808
Oper. & maint. expense.. 7,278,109 9.769.936 .9.034.321
4,460,022 4,105,806 4.153,397 4,016,480
Taxes
$25,556,471 $26,874.947 828,078,941 $27,127.173
Net earnings
6,753,804 6,687,950 7,093.409 6,486,688
Int.on bonds & debens
156,724
39.410
350,624
118.443
Miscellaneous interest
Cr378,678 Cr526,762 Cr732,531 Cr698.905
Construction account
567,885
586,716
571.750
568,200
Amort of bd.disc., &c
Reserve for depreciation 4,666,878 5,067,399 5.028,034 4.933,062
$13,827,824 $14,921,751 $16.063,904 815,483,958
Balance
13,533,737 13,897.547 11,27°,267 6,191,272
Previous balance
Total
$27,361,561 $28,819,298 $27,339,171 $21,675.230
6,940.529 6.744,922
Preferred dividends---- 7,145,012 7,166,321
Common diva.(8%) --- 6,476,692 6,341.219 5,749,835 5,122.490
304.706
741.260
Miscall. adjustments
Cr62,337
597,711
Prem. & disc, on retire.
1,180,309
offunded debt
Total P.& L.surplus_$13,802,194 $13,533,737 813,897,547 $9,413,113
Shs.com.outst.(nar $25) 3,115,421 3.090.989 2,773.255 2,489,117
,
Earns, per sh.on average
$3.44
$2.02
$2.53
$3.25
no. of corn. shs. outst.
BALANCE SHEET DEC. 31.
1932.
1931.
1931.
1932.
Liabilities
Assets
Plants & prop--351,610,418 348,179,776 Capital stock:
Original pref.. 4,000,000 4,000,000
Invest., &c., in
subsidiary cos 5,126,599 5,272,742 7% pref. A,. 25,585,300 25,701,625
4,765,704 6% pref. B... 48,740,375 48,904,450
xCom.stks.subs_ 2,802,572
5,797,489 3,715,762 534% pref. C_ 35,855,850 35,697,050
Cash
Corn. stock-- 77,885,525 77,274,725
Spec. dep. with
136,497 Subscr. by empl,
136,560
trustee
269,970 to cap. stock.. 5,676,775 7,363,575
Working funds _
163,745
Cap.stk,of subs.
YAccts. & notes
11,000
receivable_ _ _ _ 3,789,587 4,459,681 in hands ofpub
Materls & supp. 3,895,157 4,406,596 Funded debt_ __137,908,000 128,096,000
8,200,000
Notes payable
Unamort. Matt.
816,110 2,728,904
Accts. payable_
and prem, on
407,224
383,083
bonds
10,886,759 10,625,387 Consum. depos.
821,572
784,726
On cap. stock
2,004,725 1,380,649 Consumers' adv.
118,796
151,880
Deferred income
Miscell. deferred
695,907
691,494
960,170 1,224,332 Interest accrued
charges
Taxes accrued__ 4,315,111 3,502,900
Deprec. reserve_ 27,017,868 23,766,120
Sundry reserve_ 1,373,091 1,365,007
Dividends pay-- 2,215,072 2,219.832
13,802,194 13,533,737
Surplus
387,173,782 384,437.095
Total
387.173,782 384,437,095 Total
Due by officials, employees and public on stock subscriptions. y After
reserved for uncollectible
deducting $152,616 in 1932 and $153,148 in 1931
accounts.
-V. 136, p. 659.
American Smelting & Refining Co.
(34th Annual Report-Year Ended Dec. 31 1932.)
President Simon Guggenheim, in his remarks, says:
The year 1932 was the third successive year in which the earnings have
been markedly less than in the preceding year. The cause was the same
as in the two preceding years-the prices of non-ferrous metals. at unusual
lows at the beginning of each year, continued to fall to still lower levels.
The extent of the decline is shown in the following table of prices prevailing
at the end of each of the last five years:
1932,
1931.
1929.
1930.
1928.
December 31Copper(E. M.J.) quotation
4.775c
7.0250
17.775c 10.2750
f.o.b. refinery per lb.)_- ___ 16.275c
U. S. Lead (A. S. & R. New
5.10
3.75
3.00
6.25
York quotation per lb.)...- 6.50
Foreign Lead(New York equi2.9473
2.0495
1.392
4.45
4.5308
valent per lb.)
U.S.Zinc(East St. Louis quo4.125
3.138
3.125
5.45
6.35
tation per lb.)
Foreign Zinc (New York equi1.972
1.918
2.717
4.057
5.538
valent per lb.)
Silver (Handy & Harman quo24.375
31.125
30.25
46.75
57.375
tation per oz.)
It seems improbable that the prices of these metals can go very much
lower, at least for any extended time, since at present most mines can
produce only at a loss, and only a very few, if any, at a real profit after
adequate depreciation and depletion charges
The reults of the year's fall in prices were a still further reduction in
volume of company's own mine production; of outside tonnage coming in
to smelters and refineries; of tonnage going through our manufacturing
enterprises; further metal inventory write-downs; and great reduction in
earnings.
The lessening volume of business, accompanying falling prices, is shown
n the following table of the last five years:
1931.
1932.
1929.
1930.
1928.
i Year-Ounces gold produced.,- 1,407,286 1,461,215 1,760,702 1,454,774 1,345,960
Ounces sliver produced. 81,434,214 89,098,293 85,515,993 65,125,555 44,966,413
497,832
363,507
545,100
240,426
471,880
Tons of lead produced....
440,784
619,398
271,825
138,648
563,713
Tons of copper produced
53.486
54,510
41,979
66,040
47,433
Tons of zinc produced....
23,971
30,253
17,474
11,753
26,757
Number of men employed
Tons charge and smelted 4,330,508 4,620,185 3,911,470 2,525,099 1,651,367
(Above includes metals treated for others).
The following table of company's earnings and cash position at the end
of each of the last five years shows the two most Important aspects of the
picture:
a Net Earnings.
b Cash.
Year831,101.763
827,222.485
1928
c34,462.871
25,502,523
1929
24,932,505
c21,565,556
1930
20.943.979
c10,232,591
1931
21,011.655
1932
c3 708 010
a Of mines, smelting, refining and manufacturing plants, after deducting inventory losses on excess metal stocks, but before deducting general
and administrative expenses, corporate taxes, bond interest, depreciation,
obsolescence and depletion. b Including call loans and U. S. Government
securities. c The earnings above expressed are after a write-down in
inventory valuation of stock of excess metals, as follows: 1929, $834.630;
1930, $2,612,524; 1931. $3,194,987; 1932, $3.266,230; total, $9,908,373.
In addition to the above write-down of inventory on excess stock, the
normal stock was written down during the same four years, through Metal
Stock Reserve. $17,313,139, making a write-down of both excess stock and
normal stock totaling $27,221,512. The normal metal stock will not be
sold, since it will be needed in the company's business, and a recovery of
values in this case will be credited to the Metal Stock Reserve.
Outlook.
-The bright spot in the picture is that, notwithstanding the
decline in earnings, company's cash position remains strong and shows
Improvement in the year. This is the more gratifying when it is recalled,
as above stated, that the company has not, during this period, reduced the
physical quantity of its inventory of metals (copper, lead and zinc). but
1710
Financial Chronicle
still has its accumulated stock on hand. In other words, it has not preserved cash position by liquidating inventory at abonormally low prices.
Cash in the year 1932 was protected mainly by stringent economies in
expenses and construction, and by the cessation of dividends, deemed
necessary in order to protect the company's position through this unprecedented depression, the duration of which cannot be estimated as yet.
Company has no loans from banks. Company spent, in the year 1932,
for investments, advances to affiliated companies, and improvements, the
total sum of $2,063,606 in cash.
Acquisition.
-The outstanding new venture of the year was the acquisition, for $3,500,000 par value of bonds, of the business and all the assets,
except its stock of excess metals, of Federated Metals Corp., subject to an
outstanding bond issue of $2,198,500. That company is the largest dealing
in the collection, re-treatment and re-sale of non-ferrous metals which have
once been used.
For several years company has been increasingly active in this same line,
and the acquisition of Federated Metals affords an opportunity of much
greater profit in the combined business because of reduction of overhead
and consolidation of plants.
CONSOLIDATED INCOME AND PROFIT AND LOSS SURPLUS
ACCOUNT.
Calendar Years1932.
1929.
1930.
1931.
Net earns, mines,smelt.,
ref. & mfg. plants _
$3,286,070 19,278,957 119.750,285 $32,659,728
Other income (net)
421,940
1,803,144
1,815,271
953,634
Total net earnings
General & admin. exp._
Research & exam. exp
a Corporate taxes
Int.on ser. A 5% bonds
Lat.on Federated Metals
Corp. 7% bonds
Deprec. & obsolescence
Ore depletion
$3.708.010 $10,232,591 $21,565,556 $34,462,872
1.298,903
1,555,276
1,752.119
1,757,050
133,231
226,377
367,681
336,637
38,463
364,905
671,489 2,314,369
1,757,588
1.794,646 1,828,434 1,886,982
12,824
4,229,792
743.384
Netincome
los44.506,175
Preferred dividends_ _ _ _
875,000
2d pref. dividends
500,000
Common dividends
4,546,081
870.329
4,645,906
1,201,176
4,663,559
1,672,692
8874,976 111,098.751 121.831.583
3,500,000 3.500.000 3,500,000
708.337
1,200.000
3,659.926 7.319,760 7,319,760
Deficit for period_ _ _ _ $5,881,175 $7,484,950
$429,346sur$11011823
Previous surplus__ _____ 23,349,167 37.540,618 44,281,168 35,282,584
Trans.to surplus ofoveraccruals in prior years
for Federal income tax 1,500,000
Total surplus
$18.967,992 $30,055.668 $43.851,822 $46,294,407
Reserve forExt.,obsol.,cont., &c. 1,000,000
1,119,901
Mine & new bus.inv_
607,204
893.338
Metal stock
1,706,500 5,704,000
1,981,500
Reduct. of prop. acct..
5,000,000
Extraordinary losses applicable to prior years,.
433,501
Profit & loss surplus.._$15,552,991 $23,349,167 $37,540,618 144,281,168
Shs.com.stk.out.(nopar) 1,829.940
1,429.940
1,829.940 1,829.940
Earnings per share
Nil
Nil
$10.02
$3.77
a Incl. estimated U. S. Mexican income taxes.
CONSOLIDATED BALANCE SHEET DEC.31(INCLUDING SUB. COS.)
1931.
1932.
1932.
1931.
AssetsLiabilities-$
$
$
$
Property acct._111,877,608 114,153,114 Preferred stock- 50,000,000 50,000.000
Investments ___ 32,504,582 30,704,099 2nd pref. stock_ 20.000.000 20,000.000
Prop. tax. & ins. 1,844,896 1,830.384 x Common stock 60,998,000 60,998,000
Int.-plant accts.
Bda. outatand.;
6,214 1st M "A".... 37,235,300 35,631,300
15,925
In transit ____
Cash
4,945,353 3,886,315 Federated Metals
7% bonds._._.. 2,197,500
Co.'s pref.stocks
Accts., notes, &c.
3791,648
(cost)
payable ____ 5,162,958 5,969.037
U. S. and Can.
Govt. secur 16,066,303 17,057,665 Int. on bonds__
524,862
489,038
Divs. payable....
Accts. and notes
50,487 1,270,946
5,168,646 10,228,251 Accr.tax.not due
receivable
4,094,897 4,939,884 (Fed.tax.est.) 1,623,392 3,250,887
Materials lamp
Metal stocks__ _ 30,200,626 33,044,755 Res. for °boor°
contIng., a_ 11,369,062 10,053,617
Res. for mine
new business
investing ---490,548
734,940
Res.for metatk. 1,081,240 2,504,180
Misc.susp.cred.
accounts-- -- 1,224,143 1,599,572
Surplus
15,552,991 23,349,167
207,510,485 215,850,684 Total .......207,510,485 215,850.684
Total
x Represented by 1,828,665 (1,828,314 in 1931) no par shares, and
425 (1,542 in 1931) shares of $100 par value. When the exchange of no
par shares for $100 par shares has been completed there will be 1.829,940
no par shares outstanding. y Represented by 4,400 shares 7% pref.
stock and 15.300 shares 6% cumul. 2d pref. stock.
-V.136, p .12012. ga
Barnsdall Corp.(and Subsidiary Cos.).
(14th Annual Report-Year Ended Dec. 31 1932.)
Wm. Dewey Loucks, Chairman, and E. B. Reeser, President, state in part:
Capital Structure.
-At a special meeting of stockholders, held March 22
1932, the par value of the stock was reduced from $25 to $5 per share and
the classification of such shares discontinued, the outstanding stock now
being common capital stock. The reduction in par value was used to create
capital surplus. The company has charged against this account every
reasonable charge off in order to be in the best possible condition when
conditions in the oil industry commence to improve. Oil leases were written
off to $1 to do away with future depletion; plant and equipment values were
written down to present day going value; everything reasonably obsolescent
was charged off, for the purpose aforesaid; making a total charge off of
233,218,469. This change in par value and the charging to capital surplus
of these assets in no way affected the actual value of the stock of the corporation.
Standard Alcohol Co.
-For several years, the Petroleum Chemical Corp.
(controlled by Barnsdall Corp. and National Distillers Products Corp.)
has carried on exhaustive experimental work in developing a process for the
manufacture of alcohols from petroleum. These experiments proved very
successful. Company was preparing plans for engaging in the alcohol
business on a large scale, when a proposition was presented and, after careful consideration, accepted. The plan resulted in the Standard 011 Co. of
New Jersey and our Petroleum Chemical Corp. forming the Standard
Alcohol Co. (Del.). On Nov. 12 1932, the Standard OH Co. made the
following announcement:
"Standard Oil Co of New Jersey, which has been engaged in the manufacture of higher alcohols from petroleum for the last 12 years, has sold this
business to a newly organized company, Standard Alcohol Co. Standard
Alcohol Co. is a 'Delaware corporation having a capital of 1,000 no par
common shares and 10,000 no par preferred shares.
"The sale of the business to the new corporation is made in pursuance
of an agreement ending litigation between Standard Oil Co. of N. J. and
Petroleum Chemical Corp. on patents controlling the manufacture of these
petroleum alcohols, which has been going on in the United States courts in
Delaware and New Jersey. Petroleum Chemical Corp.. which is in turn
controlled by Barnsdall Corp. and National Distillers Products Corp., has
taken a substantial stock interest in the Standard Alcohol Co. and will
have permanent representation on its directorate.
"The executive officers of the new corporation are: President, F. H.
Bedford Jr.; Vice-Presidents, F. W.Abrams, F. W. Moss, M.B. Hopkins.
The directorate includes all of the executive officers and, in addition.
March 11 1933
Thomas F. Brown, Frank A. Howard, N.E.Loomis, Wm. Dewey Loucks,
George W.McKnight, Beton Porter and E. B. Reeser."
Operations.
-By reason of the proration plans and laws adopted in the
several States in which Barnsdall Corp. operates, the production of the
company was substantially curtailed during the year 1932. The corporation
adhered to these proration orders throughout, Crude oil production in
1932 amounted to 4,714,377 barrels as compared with 6,308.164 barrels in
1931. No drilling activities were carried on by the corporation except such
as were necessary to protect properties of the corporation.
Other data on the operations of Barnsdall which may be of interest are
as follows:
Average price received by the corporation for its crude production, 92c.1
number of employees, 2,000; autos, trucks or tractors owned, 500; miles of
pipe lines, 470; number of pump stations, 20; crude storage capacity,
2,254,000 gals.: refined oil storage capacity, 1,203,647 gals.; number of
stockholders, 17,100.
CONSOLIDATED INCOME ACCOUNT FOR CALENDAR YEARS.
•
1932.
1931.
1930.
1929.
Grosssales and earnings313.949.100 $13,776.163 $25,118,471 $31,285,004
Oper.& general exps_ __ 11,995,723 11,593.261 13,963,477 16,049,408
Gross income
11,953,377 12,182,902 $11,154,994 815.235,596
Other income
500.636
55,695
114,272
324,679
Totalincome
12.454,013 $2,238.597 $11,269,266 115,560,275
Interest paid
154,583
114,860
203,967
50,451
Taxes
341,502
432,779
783,097 1,028,805
Depreciation & depletion x2,169,990 3,745,351 4.234,596 4,436,473
Lease purchases
107,065
Intang. develop. costs
561,818 1.238,898 1,092,532 2,686,705
Loss applic. to min. int_
Cr33,872
Cr24.653
Cr22.300
Cr837
loss$847,072 loss$3268637 $5,130,891 $7,205,162
Net income
Previoussurplus
1,583,734 6.045,315 5,842,574 6,258.933
Total surplus
1736,662 12.776,678 $10,973,465 $13,464,095
Bonds & stk. retire
2,007,894
Income tax refund,&c_
Cr136.361
Trans. to capital surplus 1,583,734
Adj. of unprod. prop.
value
94,432
502.490
918,797
Dividends
1,098,511 4,425.659 4,831,191
Earned surplus-----_def$847,072 $1.583,734 16,045.316 $5,842.574
Shs. of cap, stock outstanding (par 85)-- - 2,258,779 y2.258,779 y2,192.725 y2,247,602
Earns.per sh.on cap.stk.
Nil
$2.34
Nil
13.20
x Investments in oil and gas leases as of Jan. 1 1932 were charged against
capital surplus and, as a result no depletion is charged against income in
the income account submitted above but in lieu thereof actual expenditures
for oil and gas leases for the period have been charged to expenses y Par
$25.
CAPITAL SURPLUS, DEC. 31 1932.
Capital surplus created by reduction of capital stock from $25 to
$5 par value
$45,175,580
Consolidated earned surplus balance. Jan. 1 1932
1,583,734
Total
146,759.314
Charges made against capital surplus during current year:
Oil and gas leaseholds
21,063,273
(To write leaseholds to nominal value of$1 at Jan. 11932.)
Mining lands and leaseholds
1,941,717
(To write off book value at Jan. 1 1932.)
Additional depreciation & equipment obsolescence
7,900,100
(To revalue equipment to present values.)
Investment in stocks and bonds
667,336
(To write down securities to Jan. 1 1932 value.)
Treasury stock
490,916
(To reduce treasury stock from cost to $5 par value.)
Other assets
1,155,128
(To reduce other assets to Jan. 1 1932, value.)
Balance capital surplus, Dec.31 1932
$13,540,844
CONSOLIDATED BALANCE SHEET DEC. 31.
1932.
1931.
1932.
1931,
Assets-$
Liabilities$
$
$
aProperty
17,246.832 49.610,291 Capital stook_ ___c11,293,895b56,469,475
Invest. In affil. cos. 3,174,780 4,378.853 Pay. ree.on equip.
41
Adv. to MM.cos.19,200
16.000 sale contract.
800.000
Deferred charges.- 200,584
635.691 Bondeddebt
100
.
Cash
801,684
915,024 Stock of subs, not
Empl. stk. subscr.
owned'hy Barns. 420.809
662,223
receivable
686,391
Accr. int.taxes,&c. 643.840
716.779
Barnsdall stock in
Bins & accts. pay.d1,096.366 3.095,630
treasury
361,970 1.270,359 Per, money Wig.
Bills & accts. tee 1,853,514 1,686,992
due alter 1 yr....
96,911
Inventories
4,596.741 4,902,731 Notes payable, see 1,509.143
Notes pay., other_ 909,050
Pur. &Mg. due '33
90.348
Accrued expenses_
87.545
Capital surplus__.13,540,844
Earned surplus-def847,072 1,583,734
Total
28,841,679 63.415,942 Total
28,841,679 63,4153142
a After deducting depreciation and depletion of $23,604.082 in 1932,and
$33,589,923 in 1931. b Consisting of class A stock $56.443,000, and clew
B stock, S26,475, both of$25 per share. c Par $5. d Accounts payable only.
-V. 136, p. 495.
Bethlehem Steel Corporation.
(28th Annual Report -Year Ended Dec. 31 1932.)
Charles M. Schwab, Chairman, and Eugene G. Grace,
President, state in part:
The total income of corporation and its subsidiaries
charges for interest and depreciation, was $594.138 for the year before
with
$21.386,694 for the preceding year. After deducting as compared other
interest and
charges of $6.896.980 and depletion and depreciation charges of
113,101.589 there was a deficit of 119,404,431 for 1932 as compared with a
net income of $115.745 for the preceding year.
The value of shipments and deliveries by subsidiary companies of Corporation during the year, as represented by gross sales and
earnings,
198,467,226 as compared with $186.541,195 for the preceding year. was
The value of orders booked during the year, including $132,416 of
orders on the books of a corporation whose properties were acquired
during
the year, aggregated 287,521,286 as compared with 8159,629.477 for the
year 1931.• The unfilled orders on Dec.311932,
as compared with $41.514,877 on(Dec. 311931. amounted to 130,568.937.
Regular quarterly dividends were paid on the
April 1, and July 1 1932, and a dividend of 50preferred stock on Jan. 2,
cents per share was
on the common stock on Feb. 15 1932. No dividends haVe been paid
or declared since July 1 1932, directors deeming it wise to conservepaid
the
cash resources of corporation. The dividends accumulated on the preferred
stock on Jan. 1 1933 amounted to $3.50 per share.
During 1932 corporation purchased through
subsidiaries the
properties and assets of Seneca Iron & Steel one of its owned a plant
for the manufacture of steel sheets, located atCo.. whichN. Y. near the
Blasdell,
Lackawanna plant. The consideration paid was the assumption of all
liabilities by such subsidiary and the delivery of 5,000 shares of preferred
stock and 10.000 shares of common stock of corporation. For this purpose
4,421 shares of common stock were purchased on the market, the remaining shares being already owned by corporation.
connection with
this purchase a bank loan of Seneca was discharged In the delivery at
par of $350,000 principal amount of the 4.3.6% serial by bonds of corgold
poration.
On June 1 1932 corporation issued and pledged 14,000,000 corned. mtge.
50
-year sinking fund 5% gold bonds, series 0, as additional collateral
securing the McClintic-Marshall Construction Co. coll. trust 535 serial
gold bonds assumed in connection with the McOlintio-Marshall purchase.
Volume 136
INCOME ACCOUNT FOR CALENDAR YEARS.
1932.
1931.
1930.
1929.
S
2
2
2
98,467,226 186,541,195 258,979.253 342.516.207
Gross sales
Mfg. cost, admin., sell.
& gen. exp. & taxes
99,708,995 168.717,350 219,548,168 282,359,283
Net before depr., &c_defl,241,769 17,823.845 39.431,085 60,156.924
Other income
3,562,849
1,835,907
5,802,579
7,312,321
Total income
594,138 .21,386,694 45.233,664 67,469,245
Bonds.&c.,interest, &c.. 6,896,980
7,426,039
7,172,517 11.217,180
Depreciation & depletion 13,101,589 13,844,910 14.217.741 14,009,085
Net income
def19,404,431
115,745 23.843.406 42.242,980
Prof. dividend (7%)---- 1,645,000 6,895,000
7,000,000
7,000,000
Common dividends
6,400.000 19.200,000 15,600,000
Deficit
21.049,431 13,179,255
2,356,594 sr19,642.980
Appropriated and unappropriated surplus-114,844,280 128,471,434 134,565,632 114.922,652
TotaL
93.794,849 115,292,179 132,209,038 134,565,632
Net adjust, in respect of
transf. of bldg.& equip.
from Coatesville plant
to other plants of corp.
567.336
447,899
Prem.on bonds retired _
3,737.604
Res,to cover anticip. loss
in respect of lands,
buildings & equipment
4,005,837
at Coatesville plant
Total approp. and unapprop. surplus.__ - 89,221,676 114,844.280 128,471,434 134,565.632
Shares com. stock out3.200,000 3,200,000
standing (no par)-___ 3,200,000 3,200,000
Nil
Nil
$5.26
Earned per share
x211.01
x Based on average number of shares outstanding; during year the
earnings per share were $15.50.
1711
Financial Chronicle
-year
23,138,000 principal amount of the Cornwall coll, trust mtge. 30
5% gold bonds, issued by Pennsylvania Steel Co. and assumed by Bethlehem-Cuba Iron Mines Co., matured and were paid during the year.
The cash expenditures for additions and improvements to properties
during the year amounted to $2,297,340. The estimated cost of completing the construction authorized and in progress as of Dec. 31 1932. is
2880,000. Work on other items previously authorized but not needed
under present conditions was suspended.
The amount of cash and marketable securities held by corporation at
the end of 1932 was $46,975,589 as compared with $50,278721 at the
end of the preceding year. The substantial maintenance of its liquid
position, notwithstanding a net reduction of $10,759,457 in its funded
debt, the expenditures of $2,297,340 for additions and improvements
above mentioned, and dividends paid during the year aggregating $6,640,000, was made possible in large part by a reduction of $16,187,861 in
inventories.
Operations of steel plants for the year averaged 16.9% of capacity
as compared with 38.6% in 1931. There was a gradual decline in the
rate of operations during the first eight months of 1932, followed by a
slight temporary improvement. The low point in the rate of operations
for the year was reached in December.
The total steel produced in the United States during 1932 was approximately 13,545.000 tons. This is the lowest volume of production since
1901 when 13,473,595 tons were produced, representing 62.8% of the
capacity for that year..
The low rate of operations combined with depressed selling prices resulting from highly competitive commercial conditions have made it
impossible for corporation to earn its fixed charges. On May 16 there
was a general reduction in wages of approximately 15% in addition to the
reduction of 10% made in the latter part of 1931. Management has
endeavored in every other way to effect economies in conducting the
business of corporation and where the conditions affecting costs have been
in the control of management substantial reductions have been made in
both administrative and production costs.
There are, however, important items of cost over which management
has no control. Among these are local property taxes. Such taxes paid
or accrued in 1932 upon the properties of corporation, including its share
of taxes on properties of companies partially owned, were equivalent to
$4.26 per ton of rolled steel and other finished products produced by
corporation during the year.
The daily average number of employees in the United States working
during the year was 30,364 as compared with 45,258 in 1931. The plan
of distributing available work among regular payroll force, as re[erred to in our 1930 report, was in effect throughout the year, but its
application was rendered increasingly difficult because of the low rate of
operations. The earnings of many employees were insufficient to provide
the necessities of life, and in these cases some additional assistance has
been necessary. This has in general been provided from relief funds to
which corporation has contributed. In addition, the collection of rents
from employees living in company owned houses and of interest on mortgages held by corporation on employees' homes has been deferred where
circumstances appeared to warrant.
In anticipation of the future abandonment of the blast furnaces, open
hearth furnaces and plate mills at the Coatesville plant, a reserve in the
amount of $4,005,837, to provide for the resulting loss has been set up and
charged against surplus.
At the end of the year 10,263 employees were the holders of record
of 93,954 shares of the preferred stock purchased and paid for under the
"Employees' Saving and Stock Ownership Plan" and 215 employees were
paying in installments for an additional 825 shares. Because of general
lmsiness conditions no offering under the plan was made during 1932,
and none is contemplated for 1933. As a result of cancellations of subscriptions under the plan, at the end of the year corporation held approximately 6,000 more shares of the preferred stock than would be required
to fill the uncanceled subscriptions as of Dec. 31 1932. Accordingly that
number of shares of such stock were transferred to the treasury of corporation as of that date.
At the end of the year officers and other employees of corporation and
its subsidiaries were the holders of record of 214,690 shares of its common
stock purchased under the management stock ownership plan, on account
of the purchase price of which they had paid in installments 22,640,488,
exclusive of credits through dividends. Of the total amount of interest
which was charged during 1932. pursuant to the plan, on the unpaid
balances of the purchase price, 2107,345 was received and credited to the
income account of corporation. Such interest was received through the
dividend on such shares paid Feb. 15 1932. In view of the prevailing
business conditions directors have approved extending, pursuant to the
plan, the time for payment of such installments by purchasers having
substantially reduced earnings. The trustees under the plan have not
as yet exercised their power to cancel any of the purchase agreements
because of defaults in payment. Purchase agreements under the plan
for 3.290 shares of stock were, however, canceled during the year pursuant to the plan, which provides for the automatic cancellation thereof
upon the death or termination of the employment of the purchasers and
the return with interest of the payments theretofore made by them on
account of the purchase price of the shares covered bY such agreements.
No payments were made for the year 1932 under the modified bonus
system to officers and heads of departments having control of matters
affecting corporation and its subsidiary companies as a whole.
Corporation during 1932 paid $782,158 in pensions to retired employees
as compared with $699,503 for the previous year. Of the amount paid
during 1932, $544,265 was paid out of the pension trust fund established
in 1928. During the year 430 new pensions were granted and 117 were
terminated by death or other causes. To provide in part for the new
pensions and for pensions granted prior to 1928, $333,616 was paid into
the pension trust fund during 1932. The net amount charged against
current earnings during 1932 on account of pensions was $1,475.640.
At the end of the year there were 1,781 retired employees on the pension
list. Effective June 1 1932 all pensions were reduced approximately
15% with a minimum pension of $15 per month.
The number of stockholders at the end of the year was 92.577, of whom
3.752 held both preferred and common stock. The number of holders of
the preferred stock was 35,792 and of the common stock was 60.537.
CONSOLIDATED BALANCE SHEET DEC. 31.
1931.
1932.
1931.
1932.
LiabilitiesAssets
$
Property acc't__515,294,408 530,813,610 7% cum. pre'
93.400,000 94,000.000
stock
Funds in hands
141,402 xCom. stock-315,900,000 815,900,000
of trustees._
132,100
Cambria Iron Co
Sundry scour.
stock
8,465,625 8,465,825
real est.instal.
contr. mtges 3,549,036 4,110,413 Funded & sec'd
126,212,420 138,971,877
debt
Inventories_ __. 51,468,406 67,656,267
Res.fund assets 3,065,805 3,063,435 Johnstown Wat.
Corp.6% pfd.
Inv.in adv.to
1,804,000 1,804,000
affiliated co's_ 9,557,764 9,083,295 stock
Actt's pay.(Incl.
Acct's and notes
receivable-- 12,606,010 23,938,213 adv. pay'ts on
contracts,&c.) 13,211,826 18,938.063
Stock held for
employees__ 16,673,469 17,735,420 Bond int. accr'd 2,035,079 1,630.440
4,995.000
Market. securs. 2,632,527 2,586.650 Divs. payableU.S.Govt.sees. 22,386,287 24,225,318 Contine. reserve 3,071,962 2,921,491
Cash in bk.s.,&e. 21,976,775 23,468,753 Insurance res've 6,000.000 6.350.000
89,221,676 114,844,280
Surplus
Total..______659,322.587 706,820.776
659,322,587 706,820,776
Total
-V.136. p. 662
x Represented by 3,200,000 no par shares.
(The) American Sugar Refining Co.
(Annual Report-Year Ended Dec. 31 1932.)
Chairman Earl D. Babst, New York, March 8, wrote in
part:
Company's meltings in tons and refining profits and losses for the past
nine years have been as follows:
Meltings.
Refining Profits.
Year1,043,522
$5,349,459
1932
1,130,557
5,658,987
1931
7,288,674
1,285,487
1930
1,257.842
8,166.361
1929
1,217.336
8,016.436
1928
1,301.670
3,070,851
1927
1.374,350
7,091.978
1926
1,307,622
4,477,143
1925
1,162,622
1oss327.637
1924
The year was a difficult one for domestic sugar refiners. Fluctuations
a narrow range, were more frequent.
of raw sugar prices, although within
Consumption declined; refined sugar imports from Cuba, Puerto Rico,
Hawaii and the Philippines increased, and melting!' declined correspondingly. Cuba's Five-Year Plan brought a succession of uncertainties;
competition among all factors continued keen; the trial of the Government's
Sherman Act suit against the entire domestic refining industry. carried on
through most of the year, was a serious burden. Three United States
refineries are now closed; the remainder are on reduced melt.
Besides regular dividends on the preferred stock, the directors declared
a dividend in January 1932 on the common stock of $1 a share, as against
$1.25 declared previously, and in May. August and November declared
dividends of 50 cents a share, making a total of $2.50 paid on the common
stock from 1932 income. This is in contrast with $5 a share paid on the
common stock in 1931 and an average of $7 paid since the organization
of the company in 1891.
Interest and Investments.
-There was received during the year income
and interest amounting to $607.599. Company received no income from
its Cuban investments, nor dividends from its beet sugar holdings.
Retirement of Bonds.
-Company redeemed on Jan. 1 1933 at the call
price of 1023. $4,000,000 of its 15
-year 6% gold bonds due in 1937, and
purchased during 1932 in the open market for retirement $70,000 additional. This will leave outstanding after Jan. 1 1933, $3,515.000 of the
$30,000.000 originally issued in 1922.
The current balance sheet, dated Dec. 31 1932, shows outstanding
$7.515,000 of these bonds. The redemption of the above-mentioned
$4,000,000 bonds will be reflected in the balance sheet of the coming year.
INCOME ACCOUNT FOR CALENDAR YEARS.
1929.
1930.
1931.
1932.
Profit from operations__ $5.349,459 $5,658,988 $7,288.675 $8.166.361
806,314
1.223,591
Int.& inc.from invest_ _
673,312
607,599
70.894
181,349
Net profit from invest_
Total
$5,957,058 $6,332,301 $8,165,883 $9,571,301
1.000,000
Depreciation
1,000,000
1.000.000
1,000.000
Interest on bonds
755,416
1,137,854
1.461,158
452,650
421,853
368,083
464,340
Prem.& disc,on bds.red
176,421
Net income
24,327,987 $4,155,031 $5,659,947 $6,645,803
Preferred dividends_ __ _ 3.149,986 3,149,986 3,149.986 3,149,986
2,249,995
1.687.496
2.249,995
Common dividends_ _ _ _ 1,124,997
Balance to surplus_ _ Shs.corn. out.(par 2100)
Earns, per share on corn.
$53,003df$1,244,950
450.000
450,000
$2.23
$2.62
$259,966 $1,808,321
450,000
450,000
$7.77
$5.58
COMPARATIVE BALANCE SHEET DEC. 31.
1930.
1931.
1932.
$
Assets$
$
yReal estate and plants_ 58,577,617 59,362,316 60,123,928
8,267,800 13,424,353
Merchandise & supplies_ 8,222,636
Prepaid accounts
3,019,423
3,010,003
3,223,187
Accounts receivable_ _ _ _ 3,822,042
4,508,492 5,594.586
Accrued income
128,726
132,336
95,880
Loans
22,017,154 21,186,894 20,780,074
Investments, general
25,270,594 25,326,345 25,904,156
Cash
14,870,945 17,003,461 19,489,208
1929.
$
61,424,011
17.962.101
3,456,499
5,911.979
184,263
20,172.203
25,701,531
22.314,972
Total
135,886,871
Liabilities
Preferred stock
45,000,000
Common stock
45,000,000
15
-year 6% bonds
7,515,000
Sundry reserves
12,203,971
Accts. & loans payable
4,275,516
Divs. declared & outst'g. 1.040,835
Surplus
20,851,548
45,000,000
45.000,000
23.961,000
12.746,603
7,258,881
1,377,547
21.783,529
139,007,223 148,468,064 157,127.560
45.000.000
45,000,000
11.085,000
12,203,971
3,541,376
1,378,330
20,798,545
45.000.000
45,000,000
18,873,000
12,203.971
3,969,536
1,378,061
22,043,495
Total
135,886,871 139,007,223 148,468,064 157,127,560
y After depreciation.
-V. 135, p. 3860.
Simms Petroleum Co.
(Annual Report
-Year Ended Dec. 31 1932.)
Edward T. Moore, President, says in part:
Accounting Readjustment and Income Charges.
-In a letter to stockholders on Nov.3 1932 you were informed that the directors had authorized
an adjustment of property values and income charges on the company's
books of account. This involved transferring $3,830,000 from capital
surplus to a "reserve for revaluation," which was allocated to reduce
the net book value of certain properties (refineries, marketing facilities,
casinghead plants, pipe line and storage Installations, undeveloped leases,
and a certain few of the older producing properties) to bring them in line
with present reproduction costs. Certain other assets, such as the valuable
West Texas and East Texas producing properties were unaffected by this
adjustment and are still carried on company's books at coat (lees accrued
depletion), which is substantially below their present-day value.
For periods subsequent to July 1 1932 charges against income for depredation,loss on abandonment, &c., are based upon the reduced property
valuations. The final deficit of $473.549 for the year is after deducting
$1,221,647 for depreciation, depletion, abandonments, write-off on crude
oil inventory and miscellaneous adjustments. Of this latter amount,
2726,944 represents charges accruing during the first half of the year,
prior to putting into effect the adjustment of accounts referred to, and
$494,703 represents charges for the second half of the year. In this second
six months' period, $702,588 was charged against the reserve for revaluation, covering items provided for in this reserve.
1712
Financial Chronicle
Reduction in Capital Stock -During 1932 company purchased 209,500
shares of its own capital stock at a cost of $1,015,919. Of this, 100,000
shares were acquired at $5 per share pursuant to a special authorization
of the stockholders, who were given the right to sell stock to the company
pro rata. The balance was purchased in the open market. Company
sold 4,400 shares to the trustees of the Employees Stock Purchase Plan
for $19,016, under the provisions of the plan authorized some years ago.
The stock outstanding in the hands of the public was reduced from 700,000
to 494,900 shares during the year.
Pursuant to vote of the stockholders at special meetings held on April
6 1932 and Dec. 6 1932, 369,271 shares of the company's stock which had
been reacquired were retired and canceled. The authorized capital
stock was reduced from $10,000,000 to $5,000,000, consisting of shares
of the par value of $10 each.
COMPARATIVE STATISTICS OF OPERATIONS FOR CAL. YEARS.
1932.
1931.
1930.
1929.
Daily avge. net produc.
of crude
__
8,622
10,472
12,051
13,892
No. of produc. wells at
oil-bbls_end of years:
Oil wells.
782
829
829
819
33
Gas wells
29
29
30
811
Total
Daily avge. crude oil
through-put of refin5,089
eries-lab
-Is
Daily avge. gasoline sales
of bulk stations-gals_
34,729
Daily avge. produc. of
casinghead gasol-gals
3.673
Capac. of steel storage
tanks owned at end of
years-bbls
3,324,230
Miles of pipe line owned
at end of years
72
858
859
4,273
51,200
58,328
5,046
7.409
7,925
3,378,230
3,473,730
3,559,130
110
88
105
Total
120.111,589 121,304,880
Total
120,111,589 121,304,880
x Market value Dec. 31 1932. $13,043,818, against $14,932,395 in 1931.
y After depreciation reserve of $24,883,697. z 6,261 shares, at cost.
-37. 135. p. 4038.
5,607
50,932
COMPARATIVE BALANCE SHEET DEC. 31.
1932.
1931.
1932.
1931.
Assets
LiabilUtes-$
$
Real est., bidgs.,
Preferred stock_ 25,000,000 25,000,000
machinery,&cy37,243,577 38,346,813 Common stock_ 83,250,000 83,250,000
Inv.in affil. cos_ 31,893,897 31,615,046 First mtge. 5s- 1,788,000 1,768,000
Cos. pref. stock_z 710,979
875,683 Aud. vouchers-279,820
328,102
Mtges. receivle
151,483
151,483 Accts. payable_
889,102 1,017,052
Cash
10,399,799 5,834,858 Accrued interest
Accts. receivable 3,083.580 3,548,838
on bonds_ _ _ _
14,717
14,717
Notes recels able
14,319 1,871,958 Divs. payable-- 2,335,000 2,335,000
Demand loans.
2,851,615 Outstandl stock
Timeloans
1,896,612
of merged cos3,193
2,527
Marketablesees-128,215,638 28,978,014 Reserves
2,720,813 3,053,428
Accr. int.,
183,858
224,115 Surplus
24,007,308 24,585,889
Due fr. Will. cos. 3,907,082 3,391,099
Mdse.& supplies 4,207,332 5,715,190
Deferred charges
203,610
302,389
852
4,909
CONSOLIDATED INCOME STATEMENT FOR CALENDAR YEARS.
1932.
1931.
1930.
1929.
Gross open revenue_ __ _ $3,331,876 $2,786,094 $5,187,949 $8,957,708
Other income
127,218
287,512
97,675
610.371
Gross income
$3,459,094 $3,073,606 $5,285,624 $9,568,079
2,568,255 3,769,269 4,260,571
Operating expenses
2,094.665
534,724
Tax.,int.,lease rent,&c.
399,395
542,999
504,397
Productive, drill, deplet.
deprec. & abandon__ _ 1.438,583
2,621,849 2,448,874
2,474,309
March 11 1933
International Business Machines Corp.(& Subs.).
(21st Annual Report
-Year Ended Dec. 31 1932.)
CONSOLIDATED INCOME ACCOUNT FOR CALENDAR YEARS
1932.
1931.
1930.
1929.
xNet profit
$10,632,982 $11,388,518 $10,966,318 $10,028,293
Bonds, &c., interest_ __ _
118,945
171,526
182,609
222.992
Depreciation
2,180,126
1,928,842
1.790,888
1,557,308
Develop. Sr patent exp...
809,979
752,544
835,004
802,026
Federal tax (estimated)975,000
800,000
800,000
740,000
Amortiz. of patents_ __ 71.232
71,236
71,237
71,237
Foreign exchange loss...
89,924
38,318
Res. for add, loss on for.
exchange
51,250
274,900
Net income
yDividends
Rate
$6,336,521 $7,351,150 $7,286,580 $6,634,730
4,216.428 4,016,526 3,825.855 3,188.732
($6)
($6)
($6)
($5.25)
Balance, surplus
$2,120.093 $3,334,624 $3,460,725 $3,445,998
Prey. capital & surplus_ 40,512,838 37,178,214 33,717,489 30,271,492
Res. for gen. co. welfare Dr384,522
Declared cap. & surp.$42,268,409 $40.512,838 $37,178,214 $33,717,490
Shares of capital stock
outstanding (no par)_
703,345
669,852
637,954
607.576
Earns. per sh. on cap.stk.
$9.11
$11.08
$11.53
$11.03
Deficit
$597,274 $2,651,222 $2,477,969 sun .000,964
• x Net profit of subsid. cos. Including foreign, after writing down invenSirs. of cap, stock outtories of raw materials to cost or market, whichever was lower, and destanding (par $10)...
494.900
700,000
808,881
835,362
ducting maintenance repairs provision for doubtful accounts, the proLoss per share
$0.96
$3.79
$1.82 prof.$2.79
portion of net profit applicable to unacquired shares, and expenses of'
ANALYSIS OF CONSOLIDATED CAPITAL SURPLUS, YEAR ENDED, International Business Machines Corp. y In addition to cash dividends
here shown, company paid a 5% stock dividend in January 1930, January
DEC. 31 1932.
1931 and January 1932.
Capital surplus, Jan. 1 1932
$4,003,446
Par val. of 209,500 shs. of co.'s stock acquired during
- 2,095,000
COMPARATIVE BALANCE SHEET DEC. 31.
Cost thereof
1932-- Dr.1,015,919
1932.
1931.
1931.
1932.
Assets$
Total
5
Liabilities$
$5,082,527. argants, dm
Par value of 4,400 shares of company's stock sold from treasury
14,960,287 13,207,972 dCapital & surp_42,288,409 40,512,838
bPats.& goodwill_13,995,927 14,014,021 Funded debt
to Employees Stock Purchase Plan
44,000
e1,954,500 2,717,000'
Cash
Proceeds from sale
3,720,888 2,885,145 Accts. payable, dm 848,927
C/19,016
950,540
U. S. Treas. etre_ 2,050,000 2,000,000 Contingency res've 812,987
Amt.set up as S'res. for revaluation of certain properties, &c.". 3,830,000
758.092
Notes & accts. ree.c3,021,905 3,208,745 Foreign exchange
Capital surplus Dec. 31 1932
General co. welfare
loss reserve____ 328,151
$1,227,543
274,900
364,522
fund
Reserve for gen.
ANALYSIS OF CONSOLIDATED PROFIT AND LOSS SURPLUS,
Sinking fund
773,377
490,738
co. welfare
384,521
Inventories
2,412,850 2,760,346 Federal tax (eat.). 1,003,484
YEAR ENDED DEC. 31 1932.
821,910
Investments
8,788,759 7,615,107 Divs. payable__ 1,054,185 1,004,208
Profit & loss surplus, Jan. 11932
$297,568
Deferred assets
829,310
574,775
Adjustments of deprec., aband., &c , applic. to prior years (net)
9,933
Total
48,433,185 47,037,488
Total
48,433,185 47,037,488
Total
$307,501
a After depreciation. b After amortization. c After deducting reserve
Net loss for year ended Dec.31 1932
473.549
for doubtful accounts. d Represented by 703.345 shares of no par value
Dividend payable Jan. 16 1933
123.725
in 1932 (declared capital, $22,659,573; earned surplus, $19.608.836) and
669,852 shares in 1931. e In addition company deposited funds for the
Profit & loss deficit, Dec. 31 1932
$289,774
retirement of $466,500 par value of bonds on Jan. 1 1933 so that company
now has outstanding only $1.488,000 of an original issue of $7,000,000 of
CONSOLIDATED BALANCE SHEET DEC. 31.
bonds.
-V.136, p. 1560.
1931.
1932.
1932.
1931.
Liabilities
Assets$
$
Certain-teed Products Corp.
Capital stock (par
aProperty, tanks,
$10)
pipe lines, &c___ 4,259,717 8,475,669
4,949.000 7.000,000
(Annual Report-Year Ended Dec. 31 1932.)
688,331 Accounts payable_ 293,473
Cash
767,014
479,334
Investments
503,243 Accrued taxes, in19,847
Pres. George M.Brown, Mar.3 1932,reports in substance:
terest. &c
129,734
bAccts., notes and
137,995
123,725
accruals reedy_ 515,231 1,012,181 Div. payable
Operations resulted in a loss of $1,600,077 for the year. The working
inventories
1,195,882 1,832,714 Reserve for concapital was decreased by $970.004 but the ratio of current assets to current
tingencies, &c__ 259,497
188,487
598,268
Deferred a.ssets
95,708
liabilities at the close of the year was more than 11 to 1, and cash and short
Deferred liability- 180,000
160,000
term securities aggregated more than 50% of the total current assets, so
937,770 4,301,014
Surplus
the financial condition of the company continues to be very good. The
reduction in working capital was caused chiefly by the retirement and canTotal
8,853,200 12,878,808
Total
8,853,200 12,678,808
cellation of $387,000 of debenture and purchase money mortgage bonds
during the year and by the payment of $545,877 in bond interest.
a After depreciation, depletion and revaluation. b After deducting
It was supposed that reductions in expense, manufacturing costs, 5cc•.
reserve for doubtful notes and accounts.
would have Insured a better showing, but the tremendous drop in gross profit
Note.
-The companies had contingent liabilities of $1,219,900 at Dec.
of $1,664,000, which is almost identical with our total loss, prevented us
31 1932 on account of deferred payments for sundry leases to be made if,
from having the improved showing we had hoped for.
when and as oil is produced and sold -V. 135, p. 4229.
Net loss
Dividends paid
$473,549 $2,651,222 $1,475,518sur2,328,802
123,725
1,002,451
1,327,838
Corn Products Refining Co.
(Annual Report-Year Ended Dec. 31 1932.)
COMPARATIVE INCOME STATEMENT FOR CALENDAR YEARS.
1930.
1931.
1932.
1929.
Profits for operation---- $9.307,418 $10,543,287 $14,499,005 $16,919.389
Int. on dep.,loans, &c_386,111
487.669
231,318
799,110
Int. & dies. on securs___ 1.147,270
2,004,325
1,758,600
1,811,300
Income affiliated cos__ - 2,090,251
2,294,406
2,294,189
1,948,492
Profit on secure. sold__
See x
Sees
99,015
661,964
Total income
$12.776,258 $14,982.186 819.384.420 $22,140,257
Int. on bonded debt-- - 101,727
88,300
88,727
118.006
General, State.corp.and
Federal taxes
1.375,620
2,093,136
1,322,323
2.552,766
Depreciation
2,400.073
2.916,225
2,717,522
2,940.665
150,626
Insurance
143,839
205,643
219,168
$8,761,638 $10,709,775 $14,067,689 $16,309,652
Net income
1,750,000 1.750,000
Preferred divs. (7%)...... 1,750,000
1,750,000
7,590,000
8,855,000 10,120.000 10.120.000
Common dividends
12%
14%
16%
Rate
16%
Surplus
Previous surplus
def$578,362
$104,775 $2,197,689 $4,439,652
24.585,669 24,480.894 22,283.205 17.843,553
Profit & loss surplus_324.007.308 $24,585,669 $24,480,894 $22,283,205
Shares of common outstanding (par $25)
2,530,000
2,530.000 2.530,000
2,530,000
Earn, per share on com_
$4.85
$3.54
$5.76
$2.77
x Net loss on sales of securities to the amount of $1,805,344 in 1932
and $1,033,022 in 1931 has been charged to the reserve previously accrued.
-The December 1932 statements from affiliated companies have
Note.
not all been received as yet; but predicated upon information already in hand.
the Corn Products Refining Co. estimates that its equity in their earnings
for the year 1932 amounts to approximately $2,980,000. Of this amount
$826,629 has been received during 1932.
CONSOLIDATED INCOME ACCOUNT FOR CALENDAR YEARS.
1932.
1931.
1929.
1930.
xGross oper. profit after
repairs & maintenance $1,174,374 $2,738,415 $2-,512,203 $3,914,287'
Inc. from other sources_
87,635
161,298 • 122,418 • 72,812'
Total income
$1,262.009 $2,899,7/3 $2,634.622 $3,987,099
Sell., admin. & gen. exp.
and bank interest _ _ _ _ 2,319,559
2,963,394 4,394,956 4.466,706'
Interest
545,877
645,785
743,137
709,209
Income taxes
5,700
34.300
15,197
Sundry adjust. (net)_
Cr.3,350
16,715
Cr.1.8,421 •
25,543
• Net deficit
Preferred dividends
$1,600,077
3731,881
$2.468,319 $1,282,587
1.776
Deficit
$1.600,077
$731,881 $2,468,319 $1,284,363
x After depreciation of $829,756 in 1932, $973,621 in 1931, $1,423,695
in 1930 and $1.465,041 in 1929. and depletion of $7,511 in 1932, $8,538 in
1931. $12,711 in 1930 and $21,801 in 1929.
El
ON,r g
i
ATED SURPLUS ACCOUNT FOR THE YEAR ENDED
DEC. 31 1932.
,
$747,394
250.000
Capital surplus
Appropriated surplus
Total
$997,394
Earned surplus:
Surplus as at Dec. 31 1931
$1,221.215
Excess of par over cost of debentures purchased and retired
during year 1932
177.599
•
Total
Net loss for year 1932
Lmas on investments written off
A Iditional provision for bad debts
Other prior period adjustments (net)
•
Deficit (earned) as at Dec. 31 1932
Total surplus at Dec. 31 1932
91,398.814
1.600.077
231.951
48,000
77.982
3559.197
438.197.
Financial Chronicle
Volume 136
CONSOLIDATED BALANCE SHEET DEC. 31.
1932.
1931.
1932.
AssetsLiabtlUies$
aLands,b1dgs..mar
7% cum. pt. stock 6,300,400
chin'y & equip.- 8.907,388 9,603.064 Capital stock of
bGypsum deposits 3,531,336 3,536,514 subsidiaries _
Timber limits_ ___ 902,298
903,753 cCommon stock__ 5,734,500
Water power rights
Funded debt
9,644,000
1 Interest accrued
1
at Marselles, III.
179,243
Good-will, tradeReserve for contin1
marks, &O
1 gencies
697,951
2,643,003 1,814,080 Accounts payable. 302,778
Cash
Notes & accts. rec. 1,149,740 2,026,641 Accrued local and
Debs. In treasury_
26,468
Federal taxes___
68,375
Abend. and shutCapital surplus___ 747,394
133,037
down plants_
149,527 Appropriated surp. 250,000
1,857,483 1,826,782 Earned surplus_ _det.559,197
Inventories
Short term sects
458,255
Other investments 125,436
211,810
Gov. & mun. bds_
1,499,567
Non-current notes
receivable
62,030
Invest. In Sloane3,505.600 3,505,600
Blabon Corp
Inv. In other cos
188,468
Exp. paid in adv_ 151,866
188,760
1931.
$
6,300,400
400
5,734,500
10,031,000
183,465
619,177
381.595
73,921
747,394
250,000
1,221,215
23,365,444 25,543.068
Total
Total
23,365,444 25.543,068
a After depreciation of $9,391,469 in 1932 and $8,310,556 in 1931.
b After depletion of $331,263 in 1932 and $325.240 in 1931. c Represented
by 382,300 no par shares.
-V. 135, p. 4220.
American Rolling Mill Co.(& Subs.).
(32nd Annual Report-Year Ended Dec. 31 1932.)
CONSOLIDATED INCOME ACCOUNT FOR CALENDAR YEARS.
1932.
1931.
y1930.
1929.
Net sales
$27,294,322 $39,907,797 $53,651,626 $70,434,232
Cost of sales
43,920,428 46,175,615 40,049,767 47,251,060
Maint.& repairs to plant 2,465,6731 4,989,143 15.426,917
8,437,195
Depreciation reserve_ _ _ 1,723,292f
12,012,519
2.997.658
Admin.& selling exps
See x
See x
4,852,094
4,674,658
Net profit
Other income
a$815,071 01,256,962 $1,310,329 $7,073,662
487.954
1,031,146
856,246
1,233,577
Gross inc. (all sources)
Interest paid
Fed. and State taxes
$216,077
2,241,184
z4,495
4769,008 $2,166,576 $8,307,239
2,326,873
1.914,689
1.578,033
137.792
2,563
618,636
Net income
42,029,602 43,098,446
-6% prof_ _ _
Cash di vs.
1,320
1,320
6% cum.pf.stk. ser. A
6% cum.pf.stk. ser. B
117.300
117.936
Common stock (8%)_
Sub. cos. dividends..
5,110
Stock dive. on common_
114,094 $6,110,570
1,320
1.320
50.000
59.649
3,241,558
2,787.623
2.035,954
1,689.228
Deficit
$2,148,222 $3,222.811 $5,224,387sr$1.582,398
Final surplus
16,779,809 19,703,551 24,780,430 31,572,644
Shares corn, stock outstanding (par $25)--- -1.709.253
1.709.171
1,708.922
1.428.623
Earned per shareNil
Nil
Nil
84.24
x Includes administration and selling expenses. y Includes operations
of Sheffield Steel Corp. (Del.), whose business was acquired as of July 1
1930. z State income taxes only. a Loss.
CONSOLIDATED SURPLUS ACCOUNTS FOR THE YEAR ENDED
DEC. 31 1932.
Earned
Capital
Surplus.
Surplus.
Balance, Jan. 1 1932
$9,671,686 $10,031,865
Refunds of Federal income taxes for prior years,
and interest thereon (net)
213,584
357,821
Reduction in reserve for insurance
120,000
Disct.on company's pref.stk. purchased for trees_
7.800
Gross surplus
$10,005,269 $10,397,486
Net loss for year (as above)
2,029,602
Cash dividends:
6% cumulative preferred stock
1,320
6% cumulative preferred stock,series B
117,300
Appropriations to provide for retirements of plant
property, sundry deferred charges, &c
1,265,000
Deficitfrom operations ofsubsidiary company from
date of acquisition to Dec. 31 1931
69.522
Depreciation chargeable to capital surplus arising
from revaluations of property
5,764
Sundry adjustments (net)
80,811
53.627
Balance Dec.31 1932
$7,706,714 $9,073.095
CONSOLIDATED COMPARATIVE BALANCE SHEET DEC. 31.
1932.
1931.
1932.
1931.
Assets$
$
Liabilities$
Real eet., bldgs _101,242,631 101,954,904 6% cum. pt.stk.
88,400
88,400
Invest. In other
6% Cum. pref.
companies_ __ 6,470,010 7,234,975 series II__ .._ _ 1,964,900 1,964,900
Inventories. ___ 15,152,032 17,117,699 Common stock. 42,731,325 42,729,275
Accts. and notes
Corn. stk. scrip.
38,084
40,133
receivable.-- 5,041,855 4,277,340 Minority stocks
Due from cmof subsidiaries
9,920
12.420
ployees
1,276,049 1,323,600 5% sinking fund
Cash and U. S.
gold debt__ _ _ 23,500,000 25,000,000
Liberty bonds.
Serial 5% notes.
1,000,000,
&c
5,716,391 6,735,342 Sundry subs.dts.
134,824
112,037
Secure. in hands
3-yr. 4i4% gold
of trustees._ 66,400
66,400
notes
13,999,000 15,000,000
Other securities
Sheffield Steel
held in treas'y 1,444,598 2,910,407
Corp. 51'i %
Def. debit items 1,743,599 2,164,562
gold bonds_
3,500,000 3,500,000
Good-will & patCurr. notes Pay..
250,000
1
Ws_..-----1 Accts. payable 1.607,690 1,440,479
Accrued payrolls,
taxes, &e__ _ _ 1,263,797
1,493,107
Divs. payable_
29,617
29,804
Depr. & depl. of
prop. reserve. 31,491,707 30,367,209
Fed. taxes (est.)
4,529
Other reserves
1,014,495 1,049,387
Capital surplus. 9,073,095 10,031,865
Earned surplus.. 7.706,714 9,671,686
138,153,569 143,785,233
Total
Total
138,153,569 143,785,233
-Nr. 136, p. 160.
American Water Works & Electric Co., Inc.
(19th Annual Report-Year Ended Dec. 31 1932.)
H. Hobart Porter, President, in his remarks to stockholders says in part:
The electric light and power properties are controlled through a subsidiary, the West Penn Electric Co., and their acquisition and development in the past was the result of a well considered belief that the union
of what was then a large number of isolated individual units would result
in a single strong system which would give the entire territory a service of
the highest degree of reliability at a lower cost than would otherwise be
possible. Substantially all the properties were purchased prior to 1923
and none have been acquired which have not been economically interconnected by transmission lines with the entire group. As these various
electric properties were located in different States, each with its own
laws and regulatory commissions, it was generally necessary to Preserve
1713
their legal corporate identity within State lines. As a matter of economic
fact, however, the whole region constitutes a single area of service which
could be provided with the greatest efficiency and at the lowest cost in
no better way than to bind the properties together under the ownership
and control of a common company, the West Penn Electric Co. The
successful development of this plan is conclusive evidence of its soundness.
The policy of this company has been to develop and finance its subsidiary
companies as self-sustaining units and to derive its own income from its
investments in such subsidiary companies. No profit is included in the
charge this company makes for the services which it renders to its various
subsidiary companies and which cover practically every feature of their
operation,including financing and construction. Such services are rendered
at cost.
This grouping of properties has effected economies which were otherwise
not possible to the operating companies, and the absence of profit to the
parent company has resulted in the operating companies receiving the fullest
benefit of such economies.
The water works division, deriving its income chiefly from domestic
customers, has felt the effect of the falling-off in industry to a lesser
extent than the electric properties and the statement made in some of our
previous annual reports is still true, namely, that if this company had
received no dividends during the past year from its large investment in the
common and preferred stocks of its electric subsidiaries, its income from its
water works subsidiaries and miscellaneous investments was sufficient to
pay all of its operating expenses, taxes, interest on its collateral trust bonds
and debentures, its preferred stock dividends, and still leave a substantial
amount available for common stock dividends.
CONSOLIDATED INCOME ACCOUNT (INCL. SUBSIDIARIES).
1932.
1931.
1929.
1930.
Gross oper. earnings__843.671,609 $49,931,729 854,066,879 $54,119,004
Op.exp., taxes & maiiii_121,590,7811 24,079,167 26.183,152 25,603,531
Federal taxes
1 1,049.200
1.514,029
1.578.757
Gross income_ _ _ _ __ -$22,080,828 824,803,362 $26,369.698 $26.936,716
Pref. diva,of subsidiaries 5,646,052
5,634,314
5.616.059 5,292,920
Minority interest
1.436
1.663
7.691
23,306
Int.& amort. of discount 1,295,471
1,319,179
1,289,805
1.382.866
do Subsidiary cos__ . 8,699,596 , 8.649,270 _ 8,727,192 8,278,620
Reserve for renewals, replacement & deprec
2.746,651
3,094,742 4,105,304
4,137.526
Net income
$3,691,621 86.104.194 86,623.647 87,821,479
Previous surplus
64,572,440 64,655,784 63,008,095 60.595,786
Other credits
109,602
154,844
Reduction in Federal income tax, &c
294,972
399,788
Contributions for exten_
95.706
Total surplus
$68,759,555 $71,164,553 869.786.586 $68,417,264 •
Deducts
Disc. Sz exp. on sale of
preferred stocks
. 82.612
226.044
91,997
65.502
Sundry adjustments_
49,561
38.745
Prem. on red, of pref.
stock of subsidiaries
175,000
Write-down to closing
market mice Dec. 31
.
1932 of 28,075 she, of
com. stock of Amer.
Water Works & Elec.
Co. Inc
908.300
Write-off of investments
in Wheeling Traction
Co. and other transportation cos, plus
sundry adjustments_ _ 1,137,094
Divs. paid Amer. Water
Works & El. Co.(Del.)
First preferred
1.200,000
1,200,000
1.200,000
1.200.000
Common cash
3.009.818
1.541,227
3.464.463
5.250.554
Common (stock)
838,371
2,228,152
Profit & loss, surplus _861,984,196 $64,572,440 $64,655,784 $63.008.095
Shs. corn. outst.(no par) al.735,515
1,750.888
1,750.888
1.657,093
Earns, per share on com.
$2.80
$3.10
84.00
$1.44
a Does not include 15.373 shares held in system.
CONSOLIDATED BALANCE SHEET DEC. 31.
1932.
1932.
1931.
1931.
Assets$
Planta, property
z let pref.stock_ 20.000,000 20,000,000
& invests._ _389,211,422 389,183,137 y Com.stock_- 17,508,883 17,508,883
Cash on deposit_
Pref. stocks oi
67,229
Corn.stk.of Am.
subs, with pub 86.541,950 85.822,709.
Water Works
Min. stkhldrs.'
& El. Co., Inc
int. in corn.
395,715
Temp. Invests.
stock & surp.
system securs
11,518
of sub. cos-12,738
1,540,417
Cash
Collat. trust 5s_ 12,569,100 12,575,600.
Cure. check'g
6% debentures_ 8,000,000 8,000.000
account and
5% debentures_ 3,000,000 3,000,000
on hand - __ 3,616,993 3,330,174 Fund,debt subs.160,793,500 159.223,400
Held by trust.
Accts. payable_ 1,327.980 1,814.536
for construe.
Notes payable-- 2,650,319 2,235,319
purposes, &c
102,933 Pay. by employ.
xAcc'ts, notes,
under stock
&c., receiv__ _ 5,998,455 6,526,391
purchase plan
192,476
250,705
Maris & suppl's 2,102,883 2,526.559 Federal taxes767,684
Accrued int. and
Other taxes...__ 2,305,124 2,189,525.
Mat'd int. pay_
dividends rec.
554.241
15,665
558,968
Due from subscr.
Acced int. pay_ 2,205,222 2,213,180
to pref. stk. of
Divs, accrued on
sub. cos
pref. stocks _
6,041
345.584
345.556
Disc, on bile.
Divs. dee!. Pref.
notes, &c., destock
926,088
912,637
ferred charges 17,736,879 17,108,003 Div. declared on
Commis. & exp.
common
433.879 1,312,778
on sale of capConsumers dep.. 3,977,414 4,194,566
ital stock- _ _ 1,237,243 1,243,588 0th. def. habilis.
138,615
157,999
Deferred credits
369,734
388,103
Res. for deprec.
damages, &c_ 34,546,665 33,511,919
General surplus_ 61,984,196 64,572,440.
Total
420,382,486 421,567,243
Total
420,382,486 421,567,243
x After deducting reserve for uncollectibles of $667.096 in 1932 (1931.
8483.074). y Represented by 1.750,888 shares no par common stock.
z Represented by 200,000 shares $6 cum. 1st pref. stock.-V. 136. p. 1372.
• New York Telephone Co.
(Annual Report-Year Ended Dec. 311932.)
President J. S. McCulloh, New York, March 3, wrote in
substance:
Prevailing business conditions were reflected in the operations of company during the year 1932. There were 609,896 telephones installed,
855,036 disconnected. 53.218 added through merger of six wholly-owned
upstate companies, and 848 added through purchase, resulting in a net
decrease of 191.074. or 7,4%. The total of 2,407,604 telephones in service
at the end of the year was approximately the number in service on Dec.
31 1927. The daily average originating local and toll telephone calls
during 1932 was 11,110.000. a decrease of 5.4%.
Net telephone earnings on the book cost of the average plant in service
were at the rate of 4.60% compared with 5.60% for 1931.
Rates.
-The present rates of the company in the State of New York were
fixed by orders of the P. S. Commission during the year 1930.
In the year 1932 the return under these rates was 4.86% on the value
of the property as determined by the Commission in 1930, plus net additions
and but 4.60% on its actual cost.
The expenses directly related to the investment in plant are practically
fixed and cannot be appreciably reduced during slack business periods.
These expenses constitute a large portion of the cost of rendering service.
Taxes alone in 1932 amounted to 50 cents a month for each telephone in.
Financial Chronicle
1714
service or $6 a year. The total paid in taxes in 1932Iwas over 15 million
dollars and the tax costs have been increasing from year to year.
Operating costs, namely, those not directly related to the investment
were, through rigid expense control, reduced $11,794,000 as compared with
1931, without adversely affecting the quality of the service. The decline
in revenues during the same period amounted to $15,316.000. A relatively
small part of the operating expenses is for material, consequently these
are little affected by changes in the level of commodity prices.
1920. the number of stations available on a local calling basis,
Lie., without the payment of a toll charge, has almost doubled, thus increasing the cost of rendering the service as well as greatly increasing
its value. Were it not for the savings which have been effected by the
improvement in methods and equipment and by economies, the high
quality and scope of the present service would be impossible under the
rates now in effect.
Additions to Plant and'Eguipment.--Construction work in 1932 was
limited to that required to complete projects well under way, and to care
for necessary replacements and for demands for service in new locations.
The gross additions amounted to $51,803,261 and plant costing $58,972,952
was retired, the retirements exceeding the gross additions by $7.169,691.
About half of the amount expended for gross additions was in connection
with telephone installations.
One of the main projects completed during the year was the enlargement of the long distance building at 32 Sixth Ave., N. Y. City., which
was begun in 1930.
In 1932 the company also completed central office buildings in Camillus,
Kattskill Bay, Jewett and West Berne and extensions to the Crescent
Central Office Building in Buffalo and the building in Glens Falls.
INCOME ACCOUNT FOR CALENDAR YEARS.
1929.
1932.
1931.
1930.
9=8
Telephone oper. earns_ _196,320,773 211,636,600
Telephone oper. exp----138,097,533 149,011,001
Rentals
6,424,259 6,764,589
15,142,484 14,357.172
Taxes
1,296.129
2.063.340
Uncoil, operating rev..
34,593.157 40,207,709
Jet earnings
3,204,503 4.589,496
Otter income (net)
Total earnings
37,797,660 44,797,205
9,318,107
Interest
10.121.762
155,148
Debt discouAt Jc expense
4,759
7
Net income
27,671,139 737313,950
1,625,000
Prof. dividends (6ti%) 1.625,000
Common diva.(8%)_ _ _ 29,704,000 29.704,000
3,994,950
Balance, surplus_ _ _ _def3,657.861
Shares com, stock out3,713,000 3,713,000
standing (par $i00)..
$9.08
$7.01
Earned per share
213,693,528 199,642,411
154,645,884 144,569,542
5,461,604
6,333,877
13,673,507 12,692,132
1.250.844
1.653.084
37,387,173 35,668,290
4,083.175 3,653.276
41,470,348 39,321,566
10.779,526 9,454,235
211,788
211,794
30,479,028 29,655,543
1,625,000 1,625,000
24,335.000 22.448,000
4,519.028 5,582,543
BALANCE SHEET DEC. 31
1932.
1931.
1932.
Liabilities$
Real estate
126,232,012 124,600,695 Preferred stock.. 25.000.000
Common stock _371,300.000
,^elephone plant
171,244
and equip_ _632.945.130 633,152,485 Prem.on cap.stk
Bonded debt.. _ _ 62,440,510
Furniture, fin ,
12,217,374 12,941,453 Real est. mtges_
185,650
tools, As
Cash & deposits 7,091,467 9,388,574 Accts.& bills pay 8,591,334
Notes
18,288
Marketable sec_
20,121,100
Acer. liabilities- 5,938,834
Bills and accts.
receivable_ __ 15,298,349 17,397,478 Adv. from system corp.'s_ ._102,950,000
Mat'ls & suppls_ 2,374,778 2,865,750
Services billed in
Accrued interest
2,361,423
2,042,970 1,871,543 advance
not due
78,300 1,633,360 Deferred credits
Adv.to syst.corp
448,266
2,190,107 1,093.771 Res.for amort.of
Miami!.invest
Intang. capital 1.554.483
Stocks & bonds.. 34,231,265 44,837,981
759,445 Depree'n res've_184,160.580
Sinking funds_ _ 1,000,084
Surplus
53,721,460
Unamortit. debt
27,420
disc. & exps
894,462 1,339,314
Prepaid expo_ _ _
Deterred debits.. 2,302,858 1,768,074
AWL,
838,944,883 853,649,922
Total
-V. 136, p. 1375.
Total
.806,000
$9.99
3,120,500
$9.24
1931.
$
25,000,000
371,300.000
171,244
60,836,070
384.700
22.560,321
16,877,381
6,702,476
105,950,000
2,419,636
417,904
1,471.532
182,491,463
57,067,195
838,944,883 853,649.922
Federal Water Service Corp. (and Subs.).
-Year Ended Dec. 31 1932.)
(Annual Report
President C. T. Chenery in his remarks to stockholders
says in substance:
-The most difficult problems which company had to meet
Maturities.
,
‘
in the year 1932 were three maturities; (1) $1,500,000 4; % ScrantonSpring Brook Water Service Co. notes maturing July 31; (2) 8787,000
Scranton-Spring Brook Water Service Co. 4 ti% notes maturing Doc. 15;
and (3) $2.000,000 one-year 6% notes of New York Water Service Corp.
maturing Nov. 30. As it was impracticable to sell securities to refund these
debts, other means of payment had to be found. Of these maturities, the
first was met from earnings supplemented by a bank loan which was repaid
in full prior to the end of the year; the second was met by a further bank
loan which the company expects to repay during 1933 from earnings.
In order to accomplish this, it was necessary to pass both preferred and
common stock dividends of the Scranton-Spring Rrook Water Service Co.
As of Dec. 31 1932, accumulated unpaid dividends on this company's
preferred stock amounted to $453,641.
In the case of the New York Water Service Corp. $2,000,000 6% note
maturity of Nov. 30 1932. an. offer was made to noteholders to pay, in
respect of each $1,000 note outstanding. $250 in cash and $750 in a new
three-year secured sinking fund note, bearing interest at the rate of 6%.
At the present time, more than 96% of the matured note issue has been
deposited for exchange, so the transaction can be regarded, to all intents
and purposes, as completed successfully. The payment of $500,000 in cash
made on account of the old notes, which allowed reduction of the new
note issue by an equivalent amount, came from the earnings of the New
York Water Service Corp. during 1932.
Rate Reductions -One of the results of the generally reduced purchasing
power of the communities served and the abnormally low level of the
general price indices has been an insistent demand throughout the country
for the reduction of utility rates. There are reasons too obvious to detail
why rates cannot be adjusted to every fluctuation in price levels. At some
of the properties in our System, rates were never raised during the period
of high price levels, and consequently there is no margin susceptible to
adjustment. Unfortunately, the widespread demand for reductions at the
present time takes no account of situations such as these. Wherever there
has been a reasonable basis for a reduction, we have made voluntary and
amicable adjustments with the communities in accordance with our policy
and desire to contribute to the utmost to the continuation of satisfactory
public relations. The rate case of Federal's subsidiary, Scranton-Spring
eferred to in previous annual reports, has not
Brook Water Service
Co.,ft is hoped that within the next few months the
yet been concluded, but
matter finally will be disposed of.
-Another result of the severe fall in commodity prices has
Valuations.
been that some communities have initiated condemnation proceedings,
in the belief that the present low price indices for materials and labor could
be used in establishing the valuation of property as a basis for such condemnation. However popular the public's advocacy of this theory currently may be, the Supreme Court of the United States, fortunately, has
carefully refrained from committing itself to any fixed formula, and has
stated that the cost of reproducing a property at prevailing price levels, at
any given time, is only one of several elements which should enter into the
determination of the value of a property. In this wise position there is
considerable measure of comfort and protection to both investors and
consumers.
-For a
Relationships of Holding Company with Operating Subsidiaries.
considerable period the management has recognized the advisability of so
strengthening the individual managements of the subsidiary operating
companies as to warrant a gradual assumption by those companies of all
management functions. Definite and rather rapid progress has been made
in this direction in the past few months. In September 1932, the Federal
Water Service Corp. divested itself of management functions of, and
management contracts with, the operating subsidiaries, by setting up a
March 11 1933
service organization known as Utility Service Staff Corp., all the stock
of which is owned by the operating companies. Its staff renders service to
the operating companies at cost. The Federal Corp., owning none of the
stock of Utility Service Staff Corp.. receives no profit from its activities.
The only method by which the Federal Corp. can receive funds from the
operating companies is through payment by them of interest or dividends
on those of their securities owned by the Federal Corp., or through the
repayment of loans and advances. It now appears that the transitional
period, for the needs of which Utility Service Staff Corp. was organized,
has been passed, and that perhaps during the year 1933 it may be desirable
and possible still further to transfer management functions directly to the
operating subsidiaries.
The result of this evolution upon Federal Water Service Corp. will be to
leave it a character most accurately described by the designation "investment-holding company. As the controlling stockholder of the operating
companies, it will participate in laying clown fundamental policies of
operation, but when such policies have been established, the actual management and direction of the operating companies will be left to the individual
local managements. The president of Federal Corp. will become Chairman
of the Board of the principal operating companies, but there will be no other
officer in common.
This transfer of managerial functions from New York back to the local
companies is, we believe, in accordance with sound policy and will simplify
public relations, in that most communities prefer that control of the utility
companies which serve them be exercised locally rather than by outside
interests. We believe, also, that this decentralization will make for economy
in the operation of the properties. It will mean, however, that the voluminous reports and variety of data previously compiled by Federal will not
be as readily available as they have been in the past and that reports may
not be made with the same frequency. Nevertheless, there will be no
difficulty in keeping stockholders of Federal Water Service Corp.adequately
advised of the financial condition of their company and its subsidiaries.
Coincident with the above material change in the relationship of company
with its operating subsidiaries, the management is preparing, in another
direction, to take steps calculated to meet the present proper wish of the
public for more detailed financial statements, and for reasonable readjustment of asset values,when and where proper, toward the generally lower
price levels now existing. While it is probable that deflated price levels of
to-day are as far from normal as were the inflated price levels of the boom
period, and that, consequently, a determination of values on to-day's
levels would have to be drastically revised at a later date. nevertheless it is
believed that the times call for a clear analysis of asset values and probable
earning capacity.
-Southern Natural Gas Corp., in which
Southern Natural Gas Corp.
corporation has an investment of $4,650,800, continues in the hands of
reported gross revenues of $2,574,117 in 1932,
receivers. That corporation
earning its first mortgage bond interest with a margin of $365,916 available
for depreciation and (or) sinking fund. It retired through the operation of
its sinking fund more than $600,000 of its first mortgage bonds. Its position
is improving gradually. When the appropriate time arrives for the reorganization of this company, It is believed Federal will own a majority of
the aggregate of debentures and unsecured debt, and will receive, through
the terms of any reorganization, a majority of the new equity.
The officers of corporation have no reason to change their opinion that,
upon resumption of normal business activity, the investment in Southern
Natural Gas will prove to be a satisfactory one. Currently our investment
yields $120.120 yearly income.
-There has been little additional
International Public Service Corp.
activity in International Public Service Corp., which is jointly owned by
Federal Corp. The prohibition by YugoJ. G. White de Co., Inc. and the
slavia of the export of gold has made necessary the reinvestment of the
earnings of the corporation in Yugoslavia, and such earnings are being
expended there in adding to present facilities. While Yugoslavia has felt
the effects of the world-wide depression and no current income is being
received by Federal from this suorce, nevertheless a very substantial property is being built up.
-In accordance with the provisions as to the
Class A Stock Voting Rights.
voting rights of class A stockholders, which provide that such stockholders
members of the board of directors of Federal, but upon the
shall elect three
passing of four quarterly dividends shall vote equally with the class B
stock share for share upon the election of all directors and upon any other
matters, the latter privilege is now available to the holders of class A stock.
RESULTS FOR CALENDAR YEARS(INCL. SUB. COMPANIES.)
[Earnings of Cos. Acquired During Year Including Only Since Date of
Acquisition.j
1930.
1932.
1931.
$16.410.355 $17,124,089 $16,474,436
Operating revenues
4.673.273 4,921.142 4,993.938
0,peration
General exp. charged to construction.. Cr73,722
185,080
Res,for uncoil. accounts
187,445
Amortization ofrate case expense---196,252
Special legal and other expenses
755,441
673,791
730,474
Maintenance
700,541
993,208
916.112
Reserved for retire. & replacements...
1,295,183 1,140.309
1,291,903
General taxes
170,000
170.000
Reserved for contingencies
Net earnings
Other income
$8,113.123 $9,091,178 $8.794,211
734,063
226.428
249.746
$8.339,550 $9,340,924 89,528,274
Gross corporate income
Charges of subsidiary companies:
4.337,626
5,051.399 4.977.031
Interest on funded debt
159,276
284,168
271.788
Amortiz. of debt disc., miscell. int_
1,216.964
1.341,561
Dividends on preferred stock
1.321,402
1,530
6.642
8.955
Minority interest
388,499
275,130 .
200,000
Provision for Federal income tax..- _
Balance
81.380.651 $2,561,748 $3,424,379
Charges of Fed. Water Service Cos.:
385,000
386.073
Interest on funded debt
385,304
260,218
Miscellaneous interest, &c
114,835
Interest on unfunded debt
238,983
Net income carried to surplus....
Cumulative preferred dividends
Common-Class A dividend
Common-Class B dividend
$734,360 $1,937,462 $2,924,544
983,214
989,117
1,337,366
1.035,232
210,846
108,490
$734.360 def$195,377
Balance
$393.
119
560.375
ghs. of ci. A stock outatd'g (no par)_ 568.968
570,195
02.74
$1.29
Earnings per share
$1.66
y Equivalent after Federal Water Service Corp. preferred divs. and under
the participating provision of the shares to $2.74 a share on class A stock.
SUMMARY OF CONSOLIDATED EARNED SURPLUS ACCOUNT
DEC. 31 1932.
$2,485,982
Surplus balance, Jan. 1 1932
Net income, year ended Dec. 31 1932
734.360
Total
Investigation expenses charged off
Cost of condemnation proceedings, dm., written-off
Losses on sales and write down of investments
Interest on sewer assessments of prior years
Miscellaneous charges $70,411 less credits $32,548
Discount on bonds reacquired
$3,220,342
55,627
133,025
32,867
20,915
37,862
Cr33,488
$2.973,539
Balance
Add back-Cum. diva, of sub. cos. not declared for 1932, de892.770
ducted above
Surplus balance Dec.31 1932
$3,866,309
SUMMARY OF CONSOLIDATED CAPITAL SURPLUS ACCOUNT
DEC. 31 1932.
$3,929,007
Balance, Jan. 11932, per previous report
338,224
Investments charged off or reserved against
-sub.companies.
To reverse previous credit hereto representing decrease in retire227,071
ment reserve of sub.. due to appraisal of properties
44,355
Loss on sale of plant
14,624
Miscellaneous charges $93,485,less credits $78,860
Balance. Dec. 31 1932
88.304,781
Financial Chronicle
Volume 136
CONSOLIDATED BALANCE SHEET DEC. 31.
Assets-
1932,
$
1931.
$
1932:
1931.
$
5
Liabilities-
Fed. Water Ser.
Plant, property
equipm't, &c.172,940,817 172,179,294
Corp. 535%
Inv. In & loans
gold deb
7,019,500
Fd.debt of subs. 96,860.000
to still. & oth.
companies __ - 6,651,846 6,513,651 Short term notes
86,297
91,224
2,716,000
Misc. spec. dep.
of subs
1,137,929 Notes payable
5,386,124
Def. accts. rec._ 1,451,499
Cash & wkg.fds. 1,279,035 1,379.282 Accounts pay
393,863
Interest accrued 1,328,313
Notes rec. from
affil. cos
140,000 Divs. accrued_
.
44,766
81.066 Taxes accrued__ 1,537,653
Notes rec.,others
bAccounts reale 1,993.455 1,958.229 Misc. curs. liab_
127,628
492,681
Unbilled rev_
482,377 Cust. deps., &a- 1,772,997
Materials & sup.
974,228 Unearned rev-853,796
545,162
Mis. curs. assets
4,658 Res.for retire.&
Comm. on can.
replacemla _ 12,928,035
stock
2,987,258 2,991,774 Other over. see_
138,546
Debt disc. & exp 2,298,059 2,479,606 Contr.for externs
669,126
Organ. exp. of
Mint.It. In cap.
446,117
445,979
stk.& sus_ _ _ _
433,201
Parent co Def. charges &
Cum. pref.stock
unadj. debits_ 1,186,710
1,750.396
15,181,040
(corp)
cCommon stock 16,171,558
Subs. pref.stock 22.243,014
Cap. & paid-In
3,304,731
surplus
Earned surplus.. 3.866.310
7,019,500
97,110,000
5,143,000
4,824,271
392.295
1,340,538
54,262
1,278,267
112,705
1,599,618
531,402
11,772,292
131,523
637,463
430,461
15,286,942
16,202,234
22,327,922
3,929,007
2,485,982
Total
192,667,567 192,609,688
192,667,567 192,609,688
Total
b After reserve for uncollectible notes and accounts of $272,640 in 1932,
and $168,036 in 1931. c Represented by 568,968 shares of class A stock
(no par value) and 542,450 shares of class B stock (no par value).
-V. 136,
p. 841.
Tide Water Oil Company.
(Annual Report-Year Ended Dec. 31 1932.)
Axtell J. Byles, President, says in part:
Capital Expenditures.
-The capital expenditures, by divisions of the
Company. were distributed as follows: Production $6.666,500; transportation $91,400; manufacturing $1,288,800, and marketing $1,101,400.
These outlays, totaling $9,148,100, were financed out of that portion of
gross income reserved for depreciation and depletion of properties and
equipment amounting to $6,840,800 and the balance of $2,307,300 was
appropriated from other sources.
Revaluation and Write-off of Assets.
-Directors on May 5 1932 approved
a revaluation of assets and a write-off of unrecoverable and intangible
items in the sum of $17.813,325, and accordingly an adjustment of this
amount was charged to the surplus account.
COMPARATIVE CONSOLIDATED STATEMENT OF INCOME FOR
CALENDAR YEARS.
1929.
1932.
1931.
1930.
a Total volume business454,523,176 $57,321,631 $87,647,8655120,131,729
Total exps.incid.to oper- 45.849,469 650.584.956 78,048,616 107.616,604
Operating income-- $8.673,707 $6,736,674 $9,599,249 $12,515,126
Other income
1,519,502
3.450.064
1.895,591
890,179
Total income
$10,193,208 $7.626,853 $11,494,840 $15,965,190
Depreciation & depletion
charged off
6,840,839 7,709,724 6,954,459 6,870.834
Property
142,002
Amortiz. of Investments
retirements_& undeveloped leases- 1,038,186
Canceled leases, &c
1,582,115 2,071,538 2,434,631
Est. Fed, income tax
100,000
472,000
Net income
$2,172.181loss$1664986 $2,368,843 $6,187,724
Extraordinary charges
2,856,740
Tide Water Oil Co.stock
holders' prop. of prof_ $2,172,181loss$4521726 $2,368,843 $6,187,724
Surplus at begin, of year 26,053.231 28.218,435 29,403,499 26.691,724
P Total surplus2/70
-Wri2 $23,696,709 $31,772,342 32,879,448
-Surplus adjustment(net)
740,761 Cr2,564,978
803,195
718,407
Revel. of assets & writeoff of unrecoverable &
intangible items
17,813,325
Preferred dividends__ _
997,230
997.230
1.006,018
997,230
Common dividends
2,191,348
767.137
1,753,457
1,751,523
Earn. surp. end of yr- $6,482,748 $24,497,320 $28,218,460 $29,403,499
Paid-in surplus
1,555,912
1,555.887
1,555,872
Total net consol.surp- $6,482,748 $26.053,231 $29,774,347 $30,959,371
Shs.com.stk.out.(no par) 2,190323 2,191,823
2,191,821
2,191,820
Earnings per share
Nil
$6.54
$2.36
$0.63
a Exclusive of inter-company sales and transactions. b In addition *to
taxes of $1,794,740 ($1,213,098 in 1931) included In the expenses, State
gasoline taxes paid or accrued amounted to $10,039,194 ($6,685,183 in 1932)
COMPARATIVE CONSOLIDATED BALANCE SHEET DEC. 31.
1932.
Assets-
1932.
1931.
$
$
Liabilities-
$
1931.
$
Oil producing_ 40,323,888 42,752,349 5% cony. pf. stk 19,944,600 19,944,600
84,553,407 40,734,240xCommon stock. 54,758,075 54,795,575
Refining
Transportation.. 26,801,797 26,902,017 Purchase money
Marketing
18,678,576 19,694,616
obligations_.. 1,454,853
1,312,335
Miscellaneous- 2,295,974 2,295,974 Accts. payable,
1,750,938
trade
1,674,307
122,653,642 132,379,197 Wages, int. and
Total ree. for demiscellaneous. 1,145,888
797.473
Prec.,depl.,&e 67,778,446 65,793,288 Accrued taxes
1,354,537
888.795
Due to affil. cos_
487,094
338,823
Net properties
Defer purchase
& equipment_ 54,875,196 66,585,908
money oblig'n 2,623,012 3,144,449
5,347,288 7,746,854 Misc. def. Mb__
119,905
Cash
113.254
Market. secur
8,816,051
2,557,019 Res.for contIng. 2,091,378
1,965,602
Notes and trade
Deferred credit
acceptances - 573,289
324,150
789,756
to operations_
330,666
Accts. receivable 4,470,616
6,482,748 26,053,231
4,556,063 Surplus
Notes rec. from
16,596
offle. & empl.
Crude oil & prod 8,942,565 12,619,827
Materials & supplies at cost__ 1,234,218
1,053,499
Cash & sec. is
escrow
1,349,177
946,206
Due fr. attn. oos. 2,464,171
3,449,185
Inv.In atIll. oos. 5,499,415 6,618,025
Other investm ta 1,615,439 • 1,689,794
Exch.deprec.,.ke
534,913
916,382
Deferred and un1,907,222
adjusted items 1,721,611
92,460,548 111,435,740
Total
92,460,548 111,435,740
Total
a Represented by 2,190,323 no par shares in 1932 and 2,191,821 in
1931.-V. 136. P. 508
(Tr enerat
-
Tide Water Associated Oil Co.
-Year Ended Dec. 31 1932.)
(Annual Report
President Axton J. Byles, March 8 1933, worte in part:
Capital Expenditures.
-The capital expenditures, by divisions of the
company, were distributed as follows: Production, $8,683,000; transportation, $474,000; manufacturing, $1,629,000; marketing, $1,513,000, and
miscellaneous,$19,000. These outlays, totaling $12,318,000, were financed
almost entirely out of that portion of gross income reserved for depreciation
and depletion of properties and equipment. The depreciation and depletion charges amounted to $12,219,000; thus but $99,000 of total outlay was
derived from other sources.
Revaluation and Write-off of Assets.
-Stockholders on May 5 1932, approved a restatement of the 'book value of the common stock to $10 per
share which created a capital surplus of $34.097,880. At the same meeting
the stockholders approved a revaluation of assets and a write-off of unrecoverable and intangible items and accordingly an adjustment in the sum
of $34,097.880 was charged against and fully absorbed such surplus.
CONSOLIDATED INCOME ACCOUNT FOR CALENDAR YEARS.
1929.
1932.
1931.
1930.
$
$
$
$
aTotal volume of business 90.773.759 96,265,234 134.387,145 175.922.744
bTotal expenses
72.253,607 79.186.746 107,339,946 142.908.707
Operating income-Other income
18,520.153 17,078,488 27,047,199 33,014,036
1,727,476
1,186,785 2.414,160 4,358,875
Total income
20,247,629 18,265,272 29.461,359 37.372.911
Depr.& depl.charged off 12.218.859 13,663.011 12,500,924 12,522,082
Canceled leases, dcc_
Est. Federal income tax_
1,754,413
Int., discount & prem.
on funded debt
654,157
838,237
Property retirements--361.677
Amortiz. of invest. & undevelop. leases
1,199,707
Extraordinary & (or) nonrecurr. charges
6.950.893
Divs, on sub. cos. pr. stk f 1,094,535f
997,230
1 Cr119,840
MIn.int.propor. of earn:31
Netincome
4,718,6941oss5.818,671
Divs, paid in cash, pref. '
1,017,274 4.289,622
Dividends,common.....1.736.589
Balance, surplus
Previous surplus
Surplus adjustments
5,661,995
308,331
7,022,463
1,049.802
1.177.885 -
1,189.393
1.640,696
1.009,097
8,750.914 14,000,689
4,397.070 4.392,141
3.453.898
701,420def11844,882 4.353,844 6.154,650
13.739.247 20,517.486 16,888,080 11.615.444
Dr746,061 Dr5.066.643 Dr72A.438 Dr882,013
Profit & loss surplus..- 13.694,604 13,739,247 20,517,486 16,888.080
Shares, corn, stock outstanding (no par)_ ___ 5,611,040 5,789.907 5,739.258 5,560.424
Earnings per share
Nil
$0.13
$1.73
$0.76
a Done by Tide Water Associated Oil Co. & Subs, as represented by
their combined gross sales and earnings, exclusive of intercompany sales
and transactions. b Incident to operation,including repairs, maintenance.
pensions, administration, insurance costs and all other charges, exclusive
of depreciation and depletion and Federal income tax.
-In addition to taxes aggregating $3,152,100 included in the 1932
Note.
statement, Federal and State taxes on gasoline, distillates and lubricating
oils paid or accrued amounted to $16,322.340.
CONSOLIDATED SURPLUS ACCOUNT DEC. 31 1933.
Consolidated earned surplus Jan.1 1932
$13.739,247
Net profit for the year
4.718.693
Adjustments applicable to surplus of prior years
148.592
Capital surplus created by reducing the stated value of Tide
Water Associated Oil Co. (Del.) common stock to $10 per
share,approved by the stockholders May 51932
34.097.879
Total
$52,704,412
Adjustments applicable to surplus of prior years
894.653
Preferred stock dividends paid in cash and accrued
4,017,274
Revaluation of assets and write-off of unrecoverable and intangible items approved by the stockholders May 5 1932
34.740,616
Less: Proportion applicable to minority interests
Or642,736
Consolidated earned surplus Dec.31 1932
S13.694.605
CONSOLIDATED BALANCE SHEET DEC. 31.
1932.
1931.
Liabilities-5
119,969,448 6% pref.stock-- 66,652,400
56,349.177 aCommon stock 58,110.400
59,515,835 6% gold notes,
due Sept. 1
32,738,377
1935 (Associ3,775.774
ated Oil Co.)-__ 7,082,000
Total
246,142,497 272,348,612 Tide Water Assoc'd TransRes. for deprec.
Corp.
dc depletion_126,160,133 125,370,291
port
funded debt-- 1,302,000
Tide Water 011
Total props.&
Co. 5% pref.
equipment _ _119,982,363 146,978,320
stock
Invest's in co's
19,944,600
Purchase money
affiliated, not
Obligations _ _ _ 4,834,755
consolidated _ 4,329,109 13,629,263
Other investm'ts 12,663,497 6,313,058 Notes payable_ 750,000
Cash on hand &
Accounts payable-trade ._ 3,673,368
In banks
8,794,497 10,764,703
Wages, interest
Cash dc secure.
& miscell _ _ 4,862,453
in escrow__. 1,349,177
946.206
Marketable secs. 4,564,163 3,238,629 Due to cos' affiliated, not conNotes ex trade
solidated _
2,102,168
1,240,335
accepts. rec
1,091,643
Dive. pay. Tide
Notes receivable
Water Assoc.
from °file. &
Oil Co's 6%
employees
17,310
preferred _
999.782
Accts. receivable
-less reserve_ 8,263,216 8,550,377 Deferred perch.
money oblige_ 1.584,956
Due from co's
Def. credits to
affiliated, not
1,638,253
operations
2,284,491
consolidated
1,455,973
Crude oil & prod 23,383,788 27,832,135 Deferred & un523,582
Materials & supadjusted items
plies
2,172,693 2,159,108 Reserve for conDeferred & untingencies.... _ _ 2,574,154
adjusted items 3,886,762 5,479,899 Surplus
13,694,605
Min. interest in
subsidiaries.. 2,978,482
1932.
Assets$
011 producing_ _ _104,215,778
Refining
50.452.741
Transportation . 58,114,099
Marketing
32,023,032
Miscellaneous
3.336,847
Total
191,954,194 228,770,288
Total
68,465.200
90.865.377
9.490,000
1,230,000
19.944.600
1,442,438
600,000
5.750,893
3.826.897
1.790,173
1,062,948
5,486,294
616,650
113,253
2,448,378
13.739,247
3,808.941
191.954.194 228,770.288
•Represented by 5,611,040 shares, no par value in 1932 and 5.789,907
in 1931.-V. 135. p.3706.
Corporate anb 3Intiotment getu5.
STEAM RAILROADS.
-Class I railroads on Fob. 14 had 670,228 surplus
Surplus Freight Cars.
freight cars in good repair and immediately available for service, the
service division of the American Railway Association announced.
car
This was a reduction of 21,359 compared with Jan. 31, at which time
there were 691.587 surplus freight cars. Surplus coal cars on Feb. 14
totaled 214,840, a decrease of 18,340 cars below the previous period, while
1715
surplus box cars totaled 378,245, a decrease of 3,097 cars compared with
Jan. 31. Reports also showed 32,571 surplus stock cars, an increase of
269 cars compared with Jan. 31, while surplus refrigerator cars totaled
15,174, a decrease of 14 for the same period.
Reduction of Cotton Rate Suspended.
-The 1.-8. 0. Commission has suspended, pending investigation, schedules offered by railroads proposing
establishment of a reduced rate of $1 a bale on uncompressed cotton in
minimum shipments of 25,000 pounds from Natchez. Miss., and inter-
1716
Financial Chronicle
mediate points in Louisiana and Mississippi on the Yazoo & Mississippi
and the Mississippi Central RR.to New Orleans, La. "Wall Street Journal"
March 3, page. 4.
Reading Co. to Cut Anthracite Rates.
-Reading Co. has filed a tariff'with
the I. 0. Commission proposing a $1 a ton reduction in rates on prepared
-S.
sizes of anthracite from origins on its system to'destinations in mid-western
territory. "Wall Street Journal" March 4, page 5.
Matters Covered in the "Chronicle" March 4.-(a) Loans to railroads
approved by Commission from Reconstruction Finance Corporation aggregagating 511,287,644
-Restrictions fixed on loan to Frisco System-Loan
denied to Vicksburg Bridge Terminal Co.
-Soo Line loans extended
Additional applications filed, p. 1481; (b) St. Louis-San Francisco By.
rejects conditions governing Loan-Receivers say law prevents giving
previous Reconstruction Finance Corporation loans preferred status. P.
1481; (c) Monthly report of Railroad Credit Corp., p. 1481.
Boston & Albany RR.
-Seeks Bond Issue.
The company has asked the I.
-S. C. Commission for authority to issue
-year 6% refunding bonds of 1933 to the New York Central
$7.000,000 10
KR. in consideration of the payment by the New York Central of the
Boston & Albany's 25
-year 4% improvement bonds of 1908, which will
mature May 1 next. The refunding bonds will be dated May 1 1933.
The New York Central RR. has asked the Commission to approve a
further loan of $7,000,000 from the Reconstruction Finance Corporation.
The money is to be used to pay off a like amount of Boston & Albany RR.
improvement bonds.
-V. 136, p. 1542.
Central of Georgia Ry.-Exchange Ruling.
The Committee on Securities of the New York Stock Exchange rules
that beginning with transactions March 6 1932 in consol. mtge. 5% gold
bonds, due 1945, bonds shall be dealt in "flat" and to be a delivery must
carry the May 1 1933 and subsequent coupons.
-V. 136, p. 155, 838.
Chicago & North Western Ry.-Ruling.The Committee on Securities of the New York Stock Exchange rules
that on and after March 6 transactions may be made in 5% sinking fund
debentures due May 1 1933 as follows: -plain," "stamped.' The wording
The
of the stamp is substantially as follows: "The holder of this debenture.
by acceptance hereof, acknowledges payment by Chicago & North Western
By., in cash, of 10% of the principal amount hereof, and agrees that,
when the plan (outlined in letter dated Feb. 20 1933-V. 136, p. 1542)
of said railway company to holders of its 5% sinking fund debentures of
1933, shall have been declared operative, he will surrender this debenture
to said railway company at its office, Ill Broadway, N. Y. City, on its
demand, published at least once in one newspaper in the City of New York
and one newspaper in the City of Chicago upon payment in cash of an
additional 40% of the principal amount hereof, payment in cash of six
months' interest upon the principal amount hereof, and delivery of gen.
mtge. 5% gold bonds of said railway company to a principal amount equal
to 50% of the principal amount hereof, all as provided in said letter; and
the holder of this debenture further agrees with said railway company
and with every subsequent holder hereof that this debenture shall remain
negotiable for all purposes and to the same extent as prior to the imprinting
of this legend, and that, to the extent permitted by law, title hereto shall
be transferable with the same effect as in the case of a negotiable instrument, and that said railway company may treat the bearer hereof, or if
registered, the registered holder hereof, as the absolute owner hereof
for all purposes, and shall not be affected by any notice to the contrary."
-V. 136, p. 1542.
March 11 1933
The report of the Commission Baia in part:
There is pending with us an application filed Feb. 4 1933, in which the
applicant requests approval of loans aggregating not more than $2,100.000
from the Reconstruction Finance Corporation. In that application it
states that if able to obtain a loan or loans from the Credit Corporation
the funds so obtained will be applied to reduce loans from the Finance
Corporation. As part of the collateral security for the loan requested from
the Finance Corporation the applicant offers $3,041,000 of its ref. mtge
% gold bonds, series 0, which are those embraced in the applications
herein.
As the pledge of the proposed bonds with the Finance Corporation as
collateral security for the proposed loan does not require our authorization
under Section 20a of the Inter-State Commerce Act, the authority granted
will not extend to such pledge. As the applicant has shown no necessity
for pledging the bonds as collateral for any notes other than those to
evidence loans from the Finance Corporation or the Credit Corporation
our order will authorize the pledge and repledge from time to time to
and including Dec. 31 1934 of the series C bonds as collateral security
for any note or notes which it may issue to the Credit Corporation.
V. 136, p. 1544.
St. Louis
-San Francisco Ry.-Permission to File Foreclosure Suit Granted.
The Central Hanover Bank & Trust Co. and Daniel K. Catlln, trustees
under the prior lien mortgage, have been granted permission by Federal
Judge Fans at St. Louis to file a foreclosure suit against the road. The
court order follows a notice filed by the trustees in which leave was asked
to take this action. In consenting to the application, Judge Faris stipulated that to avoid unnecessary costs the foreclosure suit be consolidated
with the two receivership suits filed previously by other petitioners.
New Law Weighed for Use by Company-Readjustment
Managers Study Application of Bankruptcy Act to Reorganization.The readjustment managers conferred March 6 according to the New
York "Times" on the possibility of utilizing the amendment to the bankruptcy act in speeding the reorganization of the company. The Frisco has
assents to a plan of reorganization from about 70% of the security holders
m
ec
involved. T
The new law requires the assent of two-thirds of interested
security holders.
The new law provides that a plan of reorganization for a railroad shall be
approved by the I.
-S. C. Commission and then submitted to the approval
of the stockholders and creditors. The Frisco's plan was submitted to
the commission last Summer because the commission declined to authorize
any more loans from the Reconstruction Finance Corporation without the
presentation of a satisfactory plan for scaling down interest charges.
Approval by the Frisco's security holders followed.
Whether the steps already taken by the Frisco met the requirements
of the act was a subject of discussion at the meeting.
A statement issued after the meeting said the readjustment managers
"considered and discussed with counsel the recent amendment to the
bankruptcy act and the most effective methods of carrying out the readustment plan as promptly as possible."
-V. 136, p. 1544.
The I.
-S. C. Commission on Feb. 23 authorized the company to issue
not exceeding $864,310 of promissory notes, to be delivered to the Missouri
Pacific RR,in payment of a like amount of advances.
-V. 136. P• 1371.
Tuckerton RR.
-Bonds.
The I.
-S. C. Commission has modified its order of Feb. 6 1933 so as to
permit (1) the issue of a promissory note in the face amount of 56,000,
and (2) the pledge as collateral security therefor of $6,000 of the $45,000
of proposed 1st mtge. 6% gold bonds which were authorized to be drawn
down in the original order.
The supplemental report of the Commission states:
By the order of Feb. 6 1933 the company was authorized to procure the
authorization and delivery of not exceeding $45,000 of 1st mtge. 6%
gold bonds which it proposed to pledge as collateral security for a loan
from the Reconstruction Finance Corporation.
By petition filed Feb. 14 1933 the company has requested authority to
issue a three-year promissory note in the face amount of $6,000 and to
pledge as collateral security therefor $6,000 of its proposed issue of $45.000
of 1st mtge. bonds. It appears that the Finance Corporation is unwilling
to loan the full amount of $45,000 approved by us, but has required that
one of the applicant's creditors continue a loan of $6,000 out of a total
of $12,000 loaned the applicant. The creditor, Starr & Co. has agreed
to the arrangement. The understanding with the Finance'
Corporation
Is that it will loan $39,000 to the applicant and require as collateral security
therefor the pledge of $39,000 of the applicant's 1st mtge. 6% gold bonds,
the remaining $6.000 of the bonds authorized by order of Feb. 6 -1933
to be drawn down, to be pledged as collateral security with Starr & Co.
for their continued loan of $6,000. This loan will be evidenced by a note
In the face amount of $6,000, bearing interest at the rate of 6% per annum
and payable to Starr & Co. three years from date.
-V. 136, p. 1198.
-Abandonment of Branch.
Michigan Central RR.
The I.
-S. C. Commission on Feb. 23 issued a certificate permitting
the Michigan Central RR. to abandon a branch line of railroad known
as the Barron Lake Branch, about 5.42 miles, in Berrien and Cass Counties,
Mich.
-V. 136, p. 1198.
Geer's.) H. Pabst Jr., President of the Pennsylvania RR., 380 Seventh
Ave., N. Y. City, will until March 31 receive bids for the sale to it of consol.
mtge. bonds to an amount sufficient to exhaust $141,270 at prices not
exceeding par and interest.
-V. 120. p. 1583.
-Omits Payment of $400,000 InstallMissouri Pacific RR.
ment Due Terminal Shares, Inc.
-
Yazoo & Mississippi Valley RR.
-Would Abandon
Branch.
-
Payment was not made March 1 on the $400,000 quarterly installment
due from the road to the Terminal Shares, Inc., for the purchase of certain
terminal properties. Terminal Shares, Inc., is a subsidiary of the Allegheny
Corp., which controls the Missouri Pacific and other railroads in the Van
Sweringen group. There is $15.416,000 of Terminal Shares notes pledged
-V. 136, p. 1543.
behind the three Allegheny Corp. bond issues.
Outright abandonment of 21 miles of railroad between Hammond and
Covington, La., because of operating losses, has been proposed to the I.
-S.
C. Commission by the road, which operates the line, and the Baton Rouge
Hammond & Eastern RR., owner of the property. The mileage is a segment of the 65
-mile Baton Rouge-Covington line.
-V. 136, P. 155.
Consolidated Railroads of Cuba.
-Earnings.
For income statement for 3 and 6 months ended Dec. 31 see "Earnings
Department" on a preceding page.
-V.135. 9.4031.
• Cuba Northern Rys.-Earnings.
For income statement for 3 and 6 months ended Dec. 31 see "Earnings
-V. 135, p. 4211.
Department" on a preceding page.
•
-Earnings.
Cuba RR.
For income statement for 3 and 6 months ended Dec. 31 see "Earnings
-V. 135, p. 4031.
Department" on a preceding page.
Great Northern By.
-Asks $9,141,000 Note Issue.
-S. C. Commission for authority to reissue
The company has asked tne I.
and to pledge S9,141,000 gen. mtge. bonds series A, as collateral for shortterm notes which may be issued to meet future cash requirements.
V. 136, p. 1543.
International-Great Northern RR.
-Notes Authorized.
Vandalia RR.-Tenders.-
Monongahela Ry.-Acquisition Proposed.
The company has asked the I.
-S. C. Commission for authority to acquire
the properties of the 4
-mile Monongahela & Ohio RR., the 19
-mile Scott's
Run By. and the 3
-mile Indian Creek & Northern Ry. The properties
involved are located in Greene County, Pa., and Monongahela County,
W. Va.-v. 135, p. 4382.
New Orleans Texas & Mexico Ry.-Notes Authorized.
The I.
-S. C. Commission on Feb. 25 authorized the company to issue
not exceeding $7,456,727 of promissory notes, to be delivered to the Missouri
Pacific RR. in payment of a like amount of advances.
The report of the Commission says in part:
The applicant states that it is indebted to the Missouri Pacific RR.,
which controls it through stock ownership, in the sum of $10,355,226 for
advances, that it has evidenced $400,000 of the indebtedness by the issue
of a promissory note in that amount, and that it has been requested to
evidence the remaining $9,955,226 by the execution and delivery of demand
notes. In partial compliance with that request the applicant will presently
issue to the Missouri Pacific a demand note or notes in the amount of
$2,498,500, which, together with the $400,000 note above mentioned,
will exhaust its power to issue notes within the limitations of Section 20a (9)
of the Inter-State Commerce Act. It therefore seeks authority to issue,
to evidence the remainder of the indebtedness for advances, a demand
note or notes in the aggregate face amount of '$7,456,727 to the order
of the Missouri Pacific ,to bmr interest at the rate of 5,1,
6%__ per annum,
payable quarterly on Jan. 1, April 1, July 1, and Oct. 1. The proposed
notes are to be secured collaterally by the pledge of 74,989 shares of capital
stock of the International-Great Northern RR. owned by the applicant.
-V. 136, p. 1372.
•
-Seeks Reconstruction Finance
New York Central RR.
Corporation Loan of $7,000,000 to Retire Boston & Albany
Bonds Due May 1.
The company has asked the I.
-S. C. Commission to approve a further
loan of $7,000.000 from the R. F. C. the money to be used to pay off
a like amount of Boston & Albany RR. improvement bonds of 1908, due
May 11933.-V. 136. p. 151.1.
New York Chicago & St. Louis RR.
-Bonds Authorized.
The I.
-S. C. Commission on Feb. 25 authorized the company to issue
not exceeding $3,041,000 ref. mtge. 4;.1% gold bonds,series 0,to reimburse
the treasury for capital expenditures heretofore made; the bonds to be
pledged and repledged from time to time to and including Dec. 31 1934
as collateral security for any loan or loans which may be .obtained from
the Railroad Credit Corporation.
PUBLIC UTILITIES.
Matters Covered in the "Chronicle" Feb. 4.-(a) Weekly electric Output
lower, p. 1446; (b) Gas utility revenues down 6% in 1932.
ppalachian Electric Power Co.-Reduces-gkaded-EaLue.
5ease in the stated value of the
he stockholders have approved a d
company's no par ref. and common stock o $53.488,967 from $96,090,753.
-V. 135, p. 2995.
Associated Gas & Electric
Co.
-Earnings of System.-
Decreasc---- 1932.
12 Mos.End. Dec.31Amount.
1931.
%
Electric revenues, residential_ _524,763,691 $24,425,001 y$338,689 y1.4
17,662,389 20,283,829 2,621,440 12.9
Power
13,319,674 14,139,954820,280 5.8
Commercial
5518,889
Municipal
5,521,273
2,383 --3,682,245 3,751,132
Electric corporations
68,886
1.8
1,062,189
Railways
1.250,749
188,560 15.1
Total sales-electric
Miscellaneous revenue
$66,009,079 $69,371:941 $3,362,861 • 4.8
181,335
266,843
85,508 32.0
•
Total electric revenue_ _ _ _366,190,414 $69,638,785 $3,448,370
5.0
9,324,318
9,866,611
542,292
Gas revenues, residential
5.5
1,677.628
1,549,466
Commercial
128,162
7.6
707,905
808,123
100,218 12.4
Industrial
$11,581,689 $12,352,363
35,529
71.206
$770,673
6.2
35,677 50.1
$11,617,219 $12,423,570
Total gas revenue
Water,transportation, heat and
miscellaneous revenues
7,026,347
8,602,302
1,575,955 18.3
Total sales
-gas
Miscellaneous revenue
$806,350
6.5
Total operating revenues_ -$84,833,982 $90,664,658 $5,830,676 6 4
Operating expenses
40,778,356 42.629.466
4.2
1,851,109
Taxes
6,767,161
y869,087 y14.7
5,898,074
Net operating revenue
$37,288.463 $442,137,117 .$4,848,654 11.5
Provision for retirement (renewals,replacements) offixed
1,062,608 12.8
8,314,044
7,251,435
capital, depreciation, &c_
Operating income
$30,037,027 $33,823,073 $3,786,045 11.2
Financial Chronicle
Volume 136
Surplus Account Year Ended Dec. 31 1932.
Income of non-utility subsidiaries
dividends, &c
Other interest,
$1,565,808
1,748.095
Total other income
'Other expenses and taxes
$3,313,904
628,436
Net other income
Balance forward, operating Income (1932)
$2,685.468
30,037.027
Gross income
$32,722,496
Fixed charges and other deductions
-Operating companies:
Interest on funded and unfunded debt
$9,840.480
Preferred stock dividends
2,133,027
Group companies, &c.:
Interest and preferred stock dividends
34,062.501
Income applicable to stocks of subsidiary companies held by the public and earnings prior to
acquisition
109,198
Sub-total
Credit for interest during construction
$16,145,208
207,336
Total underlying deductions
$15,937,872
Balance
Interest of Associated Gas & Electric Co.funded debt
Unfunded debt
216,784,623
12.366,102
109,091
Balance for $4,182,561 interest on junior obligations conveyvertible into stock at company's option (including other
other charges ranking therewith, which are subordinate to
fixed int. of the company upon funded and unfunded debt) $1.309,430
x Exclusive of that portion of charges ranking after interest of Associated Gas and Electric Co. y Increase.
Note.
-The revenues and expenses for the year ended Dec.31 1931 include
the full year's operations of all properties owned at Dec. 31 1932. and
hence do not exactly agree by individual items, with those published in
the audit annual report for the year 1931.
Comparative Balance Sheet (Preliminary).
Dec. 31 '32. Sept. 30 '32.
Dec. 311932. Sept. 30'32.
$
Liabilities3
•
Assetss$
capital de surp_272,983,116 277,160,579
Invest. in (at
Obllg. cony.into
cost) and oblig.
Of subsidiarles671,822,000 678,000,000 stocks at cos.
95,204,077 99,565,694
option
Invest. in mktle
Funded debt_ _ _263,968,464 265,159,587
secur. of subs.
13,068,659 16,722.017 Accounts Payable
(at cost)
128,233
115,854
& accrued tax.
Cash and special
592.172 Matured int. un1.585,927
deposits
192,812
227,614
Accounts reels%
claimed
from subsidis. 1,582,409 2,937,252 Accrued interest 4,714.500 4,741,631
409,311
261.066
137,059 Divs. declared
Interest recelv_ _
178,685
438,183 Res.for taxes, dm 3,976,543 4,115,412
Suspense
Joint guaranty of
Res. for coating. 50,000.000 50,000,000
subs.cos.mtge.
bonds due 1941
(incl. in fund.
2,669,000
debt below).- 2,669,000
Total
691,167,748 701,495,685
Total
691,167,748 701,495,685
-An official statement follows:
February Output.
Net output of electric properties n the Associated System aggregated
193.121,499 units (kwh.) in the month of February which was 20,655,590
units below the total of 213.777,089 units generated during the same month
of 1932. This decline of 9.7% was due in large part to the fact that February
a year ago had 29 days. Taking this into consideration, the decrease for
February 1933 would have been but 6.3%. Sales of electricity to other
utilities have been eliminated from figures used in these comparisons.
An increase of 1.6% in the total sendout of gas by the Associated System
occurred during February. The total amount was 1,527,647,500 cubic
feet, an increase of 24,290,700 cubic feet over the same month of last year.
Net output of 46,130,705 units (kwh.) for the week ended Feb. 25 is reported by the Associated System. This is exclusive ofsales to other utilities
and is 3,575.292 units or 7.2% less than the total of 49.705.997 units generated during the corresponding week of last year. Gas sendout aggregated
341.416,800 cubic feet, which is 14,832,:(00 cubic feet or 4.2% less than
last year.-V. 136, p. 1544.
"Associated Telephone & Telegraph Co.-Court Dismisses Bankruptcy Petition.
Federal Judge James H. Wilkerson in the U. S. District Court at Chicago
has dismissed the bankruptcy petition against the company.
Commenting upon the action, E. C. Blomeyer, President, states: "The
suit was filed by three small corporations in Vancouver, B. C., with a total
capital of $402, alleging that the Associated company, which is an $80,000,000 utility holding company, had committed an act of bankruptcy by
transferring certain property to one of its own subsidiaries. The company
submitted evidence as to its assets and liabilities and was found by the
Court to be solvent."
-V. 136, p. 657.
Broad River Power Co.
-Confronted with Unusual
Situation.
-In connection with the recent offer of exchange
to security holders, the following announcement was made:
As a result of unusual circumstances brought about largely by the actions
of State and municipal authorities in the territory which it serves. company
Is confronted with a situation which is affecting its present earnings and
adding uncertainty to the future.
These unsatisfactory conditions may be briefly summarized as follows:
(1) One-half mill tax imposed on each kwh. generated or sold in the State
of South Carolina. materially reducing earnings available for interest;
.(2) Further encroachment upon earnings through rate reduction order of
the State Railroad Commission: (3) L038013 incurred through enforced
resumption of street railway operations in Columbia, which must be
absorbed by Broad River Power Co.
In view of this, holders of senior securities of Broad River Power Co. have
been offered an exchange of their holdings for 5% gold bonds of Associated
Electric Co. This offer has been made on a par for par basis to holders of
Broad River Power Co. 1st mtge. 5s of 1954, or Broad River Power Co.
% secured bonds of 1934.
Offers have just been made on the same basis to the owners of the Parr
Shoals Power Co., 1st mtge. 5s of 1952 and Columbia Ity., Gas & Electric
Co. 1st mtge. 5s of 1936, both of which issues have been guaranteed or
assumed by Broad River Power Co. Deposits are being received daily in
response to these offers.
The preferred stockholders of Broad River Power Co. also have been
offered an opportunity to exchange their holdings on a share for share
basis for New England Gas & Eleetric Association $5.50 dividend series
pref. shares. Less than 10% of this issue now remains outstanding in the
hands of the public.
• Public utility operation in South Carolina has been under a barrage for
more than a year and the Broad River Power Co. group is but one which
is similarly affected by action of the State authorities. The enforced operation of street railways in the city of Columbia by a Broad River subsidiary
Is an added burden placed on this company and its security holders.
-V.
136. P. 1373
.
Central Hudson Gas & Electric Co.-Rate Decision.
-
The New York P. S. Commission has approved schedules of reduced
electric rates made effective by this corporation on March 1. The new
rates, according to estimates, will save consumers about $146.000 a year.
The lower rates will mean substantial savings to both residential and commercial consumers of electricity in the company's territory which includes
the cities of Poughkeepsie, Beacon, Newburgh and variety; villages and
towns in Dutchess, Orange, Ulster, Putnam, Columbia, Greene, Sullivan
-V. 136, P. 1373.
and Albany Counties, N. Y.
k
Chicago Rapid Transit Co.-Bonds Deposited.
The "Wall Street Journal" March 8 had the following:
Chicago Rapid Transit bondholders' committee has received deposits
of more than $15,000,000 of the $46,000,000 bonds outstanding. Deposits
1717
to date give the committee control of three bond issues, on two of the
most important divisions of the transit system. However, according
to present plans, foreclosure proceedings will not be started on any of the
mortgages until the required amounts of the other mortgage bonds have
been deposited. The committee represents the seven mortgage bond
issues on the properties of the system -V. 136, P. 1198.
Central Illinois Public Service Co.(& Subs.).
-Earns.
Calendar Years1929.
1930.
1931.
1932.
Gross earnings
$11,866,443 814,496.298 $15,347,960 515,102,523
Oper. exps. & taxes, &c
9.216.277
7,245,553
9.799.735 9,599,241
Operating income_ _ _ - $4,620,890 $5.280,021 $5,548.226 $5,503,282
Other income
115,921
297.217
432.478
84,430
Gross income
$4,705,320 $5,712,499 $5.845.443 $5.619,203
2,500.339 2.332.321
Interest charges, &c__ _ _ 2.925,258 2.844.927
Net income
*$1,780,062 $2,867.572 $3,345,104 $3.286.882
Preferred dividends_ _ _ _ 1,706,910
1.457.795
1.620.317
1,723.120
Common dividends
1.419.990
1.562.058
1.562,058
195.257
Balance, surplus
$162.729
2409.097
def$122,105 def$417,606
Corn. .shs. outstanding
at end of year (no par)
252.366
260.343
260.343
260,343
Earnings per corn. share
$7.25
$6.62
$4.39
$0.28
* Subject to the adequacy of the provision for depreciation.
Consolidated Balance Sheet Dec. 31.
1931.
1932.
1932.
1931.
Assets
S
Liabilities$
$
Cash
417,090
967,676
755,838 Notes payable__
Notes and Reels
123,618
320,170
Acc'ts payable__
receivable,&c. 1,386,960 2,847,626 Consumers' dep.
278.961
268,594
Due on st k.subs.
71,547
201,274 Acct. int. er tax_ 1,016,800
960,581
Unbilled revs_ _
369,827
Federal taxes _
182,000
Mat'l & suppl's.
712,625 1,069.360 Divs. payable_ _
817,161
433,637
Fixed assets__ _ 91,042,105 94,328,126 Misc. curr. nab.
27.858
42,150
Losses deferred_ 2,530,665
56 pre.stock_ __ 26,475,108 26,569,819
Loss on Inv__ _
387,415
fi` pref. stock_
599,600
600,000
Losses on former
eCommon stock 21,909,450 21,909,450
officer
268,792
Cap. stk. subs_
288,136
Other losses_ _ _ _
98,548
Funded debt__ 56.497,000 54,974,000
Misc. investm'ts 2,746,909 '2,938,004 Pur.mon.obllg's.
100,203
103,600
Duefrom former
, Car trust efs.
16,000
officer
8166,600
692,851 2,454,298
Reserves
Due from parent
Miscell. unacil.
company ____
178,001
11,326
credits
Bond die. & exp. 8,005,068 7,952,155 Surplus
6495,83.5 1,758,022
Prepayments _ _ _
101,067
347,579
Special deposit_
20,108
Reacquired sec_
564,982
Prop. abandoned
633,343
Storm 4/ tornado
expense
51,124
Total
109,033,805 111,709,520
109,033,805 111,709,520
Total
a On account of borrowed securities and notes acquired partially secured
by 2,000 shares of $6 preferred stock
b Subject to deferred losses of $3,285,421 and reserve for depreciation and property. e Represented by
260,343 (no par) shares.
-V. 136, p. 1373.
Commonwealth Edison Co.
-New Official.
George A. Ranney has resigned as Vice-President of the International
Harvester Co. and will become Vice-Chairman on or about May 1 of the
boards of the Commonwealth Edison Co., the Peoples Gas, Light & Coke
Co. and the Public Service Co. of Northern Illinois to succeed Samuel
Insull Jr., resigned.
In addition to resigning as Vice-President of the International Harvester
Co., Mr. Ranney is also retiring as a director and member of the finance
committee of that company.
-V. 136, p. 1545, 1199.
Consolidated Gas, Electric Light & Power Co. of
Baltimore.-Earnings.Calendar Years1929.
1930.
1931.
11132.
Rev. trim electric sales_$17.754,957 518,454.778 518,370,668 $17,803.343
Rev.fr tm gas sales
9.502,208
9,326.980
9.136,248
8,769,276
Miscell. oper. revenue..
422.806
454,009
437,076
435.062
Rev from steam sales.
289.522
430.766
471.146
547,236
Gross oper. revenue_ _227,506.531 528.499.248 528.582,423 $28.017.878
Operating expenses
13,334,263 13,702,518 14,322,085 13,478.134
Retirement expense_ -- _ 2.270,418
2,074.525
1,984,341
2,181,189
Taxes
2,722,984
2,922,052
2,963,383
3,110,526
Net oper. revenue_ _-_ 58.791,324 $9.652,158 $9,263,760 29,832,420
Miscell. non-oper. rev__
560.289
776.603
575.569
262,298
Net revenue
Fixed charges
$9.053,621 $10,227,727 510.040,363 210,392,708
2.765.163
2.777,746
2,901,066 3,030,244
Net income
56,152,555 57,197,483 87.262,617 $7.627.545
Preferred dividends_ _ _ _ 1,145,868
1,045.077
1.110,260
1,123.407
Common dividends
3.223.396
4.082.973
4.202.459 4,198.896
Surplus, Dec.31
$804,228 51.875,181 52.069.384 84,359.072
Profit and loss surplus
11,299,993 15,811.309 14.802,555 13,357,012
Shares corn, stock outstanding (no par) _ _ 1,167,137
1.051.235
1,164,897
1,167.137
Earnings per share
$6.26
$5.28
55.20
$4.29
Consolidated Surplus 'Account Dec. 311932.
Total surplus Dec. 31 1931
$15,811.309
Balance for the year 1932
804.228
Total
516.615.537
Write-off of all unamortized discount. prem. & exp incurred in
the issuance and retirement of bonds of your company,in pursuance of its conservative policy and to avoid carrying such
charges for graded amortization
2.590.924
Complete adjustment to existing conditions and values of obligations of the Washington Baltimore & Atmapolis Electric
RR., and shares of United Railways & Electric Co. of
Baltimore, held by company: and a final write-down in book
value of certain properties acquired from Northern Maryland
Power Co.and Terminal Freezing & Heating Co
2,508.087
Net result of income collected and liabilities discharged during
1932 applicable to prior years, and sundry other additions to
and clednctions from surplus
216,533
Total surplus Dec. 31 1932
$11.299.993
Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
Assets5
$
3
Fixed capital..126,973,240 125,913,628 :Common stock 39,414,813 39,397,683
Miscell. Invest-- 6,141,998 8,215,247 Pref.stk.ser. A. 17,263,200 16,993,800
Marketable sec43,906
144,009 Pref. stk. ser. D 2,750,000 2,750,000
Invest. in Safe
Pref.stk.ser. E- 2,250,000 2,250,000
Ear. Wat. Pr.
63,198.000 63,627.500
- Bonds '
Corp
336,830
68,400
4,053:913 2,633,910 Cap.stk.subscr.
44 320
Int. & divs. rec.
180,431
181,398
82,493 Prem.on cap.stk
Special deposits_ 1,912,827 1,940,612 Accr. liabilities. 1,668,805 1,730,881
Cash_
717,863
613,416
4,747,100 6,077,364 Accts. payable_
Acets and notes
Other cur.liab__ 2,031,377 2,183,365
receivable.... 4.762,609 4,933,511 Sundry res., &c. 1,322,749 1,155,086
Material & sup. 2,243,594 2,455,990 Deprec. reserves 8,921,824 7,978,271
Prepayments._
31,905 Contingent red.
92,043
866,055
866,055
Misc, cur. assets
214,008 Unadl. credits__
233,805
432,576
350,887
Subscr. to stock
161,558 Surplus
22,487
11,299,993 15,811,309
Sinking fund _ _ _
50.228
50,233
Amort. discount
prem. de exp.
ur
2,629,635
inc'd on bds
613,784
ITYdro &malls
690,957
209,320
292,331
Deferred charges
152,305,364 156,307,202
Total
Total
152,305,364 156.307. 0
22
x Represented by 1,167,137 no par shares.
-V. 136. p. 1013.
1718
Financial Chronicle
Cuban Telephone Co.
-The direc-Dividend Deferred.
tors on Mar.2voted to defer the quarterly dividend due Mar.31
on the 7% cum. pref. stock, par $100. The last regular
quarterly payment of 19i% was made on this issue on Dec.
31 1932.-V. 134, p. 4322.
-BeDetroit Edison Co.
-Dividend Action Postponed.
cause of difficulties which might be encountered in transferring payments to stockholders, the directors on March
7 voted to postpone for two weeks action on the quarterly
dividend, ordinarily payable about April 15 on the common
stock, par $100. Distributions of $1.50 per share were made
on Jan. 16 1933 and Oct. 15 1932, as against 82 per share
each quarter from 1916 to and incl. July 15 1932.-V.
136, p. 1199.
-Earnings for Calendar Years.
Duke Power Co.
1929.
1932.
1931.
1930.
$23,812,867 $25.882,698 825,982,982 $28,102.688
Gross revenue
Oper. exps., taxes, renewals & replace. res. 17,144,876 17.914.524 16,889,796 16,397.472
2,984,619
3.009,395
3,075,674
3,183,687
Interest on bonds
$3,683,371 $4,958,778 $6,017,512 $8,521,529
Net income
Previous surplus
9,307,308
11,893.495 12,024,930 11,067,409
Misc, credits to surplus
10,880
Total surplus
$15,576,866 816.983,708 $17,095,801 $17,828,837
20,636
Preferred dividends_ _ _ _
20,636
20,636
20,636
4,613,738
5,050,235
Common diva, (cash)
5,050,240
5.050,240
Divs, on stock of subs_
1,980,486
Divs. on stock of subs.
not owned
146,567
19,337
Surplus adjustments
108,461
March 11 1933
Comparative Balance Sheet Dec. 31.
1932.
1932
1931.
Assetss
Liabilities$
$
Road and equip. 38,905,239 39.892,246 Capital stock:
1st preferred__ 4.139,900
Deposits in lieu of
mtge. prop. sold
47,870
45,920
Sinking fund.,_
13,000
Misc. phys. prop__ 1,814,202 1,656,077
Preferred B_ -- 2,997,800
.
Other inv.(at cost) 1,092,806
851,294
Adjustment_ _ ... 8,711,200
Cash
960,147
1,367,262
Common
8,488,014
Deposits unpaid__ 397,019
404,319 Capital adj. leased
Accounts rec
158,681
177,731 lines
965,598
Materials & suppl_ 361,932
356,108 Funded debt-unInterest, dim and
matured
19 936,450
rents receivable_
19,897
17,552 ACCOUnt8& wages_
Deferred assets_ - _
7,926
7,117
114,302
payable
Rents & Ins. prem.
Matured Int., city&
paid in advance_
96,165
74,052 and rents pay
392,265
Other unadj. debits
1,472
57,811 Matured tended
xIssued securities_ 2,571,226 2,135,497
4,343
debt unpaid....
Difference between
Accr, int., dive. &
Dar value of se39,220
rents Payable....
curitles issued for
Other current nab_
426
property & value
Deterred liabilities
1,074
at which prop'ty
Tax liability
6,475
6,565,357 6,565,357 Ins. 3: cas. res'ves. 133,449
is carried
Miscell. oper. res. 251,060
Accrued depree___ 4,170,011
Other unadj. cred_ 100,053
Investment reserve 275,024
Capital surplus__ 2,229,757
Profit and loss_ _ _ _ 435,686
1931.
$
4,139,900
13,000
2,997,800
8,711,200
8,488,014
965,598
19,236,450
138,583
399,565
4,343
39,788
439
1,364
189,947
133,449
239,613
3,119,444
92,937
947,439
2,103,517
540,787
53,405,106 53,203,178
Total
Total
53,405,106 53,203,178
x Company's stocks and bonds in treasury.
-V. 136. p. 658.
-Rate Decision.
Federal Gas & Fuel Co.
This company was permanently enjoined on Feb. 28 by Judge Cecil J.
-cent increase in its gas rate from its 20,000
Randall from collecting a 7
customers in Columbus,0.
The injunction, which keeps the Federal rate at 48 cents a thousand
cubic feet, was granted on applications brought on behalf of the City of
Columbus and the Ohio P. U. Commission.
The decision said the injunction will be effective during the life of the
48
-cent rate ordinance passed by Council and approved in 1929. This
ordinance was for five years beginning Nov. 12 1929.
The company,it was learned, plans to appeal the decision.
The two actions were started after the Federal company threatened to
charge a 55
-cent rate which was fixed for the Columbus Gas & Fuel Co. by
the Commission and became effective Feb. 1. A temporary restraining
order had prevented the Federal company from collecting the increased rate.
-V. 76. p. 813.
$10,397,529 $11.893.495 812.024,930 $11,067,409
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1931.
1932.
LiabilUiesAssets
-$
Notes. accts. &
Real est.. Plants.
1,555,310 2,179,617
int. payable_
188,361,888 187,415,046
&c
316,458
187,087
Investments
5,391.618 5,458,501 Accr. int.on bds.
45,495 Tax reserve__ - 1,963,709 1,872,014
21,798
Sinking funds
Deferred charges 2,685,724 2,814,233 Divs. declared_ - 1,267,719 1,267,719
8,041,840 4,709,025 Res. renewals &
Cash
replace., &e..- 38,391,497 32,992,761 '
Notes, accts. &
Federal Light & Traction Co.
-Omits Common Diviint. receivable 5,804,348 5,843,960 Funded debt.-- 40,000,000 40.000,000
dend-New-President.
-The directors at an adjourned meetGovt. & municiBonds of subs__ 23,157,700 23,979,400
pal bonds._._ 5.786,424 7,529.012 87 cum. pf. stk_
294,800
294.800
ing held on March 8 took no action on the quarterly dividend
Mat'l it supplies 2,126.608 1,985,889 Common stock_ 101,004,898 101,004,898
ordinarily payable about April 1 on the common stock,
Profit and loss
10,397,529 11,893,495
surplus
par $15. A quarterly dividend of 25c. per share in cash
Surplus Dec.31
218,220,248 215,801,162
Total
-V. 136, p. 1545.
Total
218,220,248 215,801,162
Duke-Price Power Co., Ltd.(& Subs.).
-Earnings.
Calendar YearsOperating revenue
Expenses and taxes
1932.
1931.
1929.
1930.
$4,305,159 $4,275,283 $4,365,202 $4,106.839
597,274
630.442
729,795
764,195
Operating income_ _
Misc. interest revenue
$3,707,886 $3,644,841 $3,635,407 $3,342,644
43,550
42,363
57,081
95,341
$3,751,436 $33,687,204 $33,692,488 $3,437,985
Total income
Interest on bonds
2,181,153
2,195.820
2.206,776
2,217,105
Other interest
218,081
260,802
312,120
325,989
659,406
656,798
Depreciation
581,403
574,563
Reserve for exchange,
100.916
&c.,contingencies_ _
273,000
Dividends
Net income
3318,879
$573,784
$592.190
Earns. per sh. on 210,000
no par shs. outstand'g
$2.82
$2.73
$2.82
Consolidated Condensed Balance Sheet Dec. 31.
1931.
1932,
1932.
$320,327
21.52
1931.
Assaf
-
yCapitalstock..._21,000.000
:Plant,tramlines,
6% 1st mtge. gold
RR. and equip.,
bonds
36,095.000
water rights,contracts, &c
58,895,227 59,214,166 6% gold notes.- 3,500,000
Accr. int. on bonds
Inv. in and advs.
and notes
405,475
to Mill.company 997,234 1,265,094
Accounts payable_ 143,572
Prepaid exp. and
deferred charges 1,897,034 1,951,506 Res'ves for income
and other taxes_ 138,195
Sinking fund in
239 Res. for casualties
106
hands of trustee
and insurance__
89,660
11,259
67.798
Inventories
Res.for exch.,&a.,
Accounts and notes
539,667
contingencies915,846
100.916
receivable
97,638 Surplus
2,390,627
Marketable occur_ 107,649
904,151
399,752
Cash
21,000,000
36,452,000
3,500,000
409,124
137,741
102,571
12,193
1,944,093
Total
63,785,045 63,557.721
63,785,045 63,557,721
Total
x After depreciation of 33.341,722 in 1932 and $2,685,100 in 1931
-V. 135, p. 1823.
Represented by 210,000 shares of no par value.
Duquesne Light Co.-Earnings.
For income statement for 12 months ended Dec. 31 see "Earnings
-V. 136. p. 157.
Department" on a preceding page.
Eastern Massachusetts Street Ry.-Earnings.1931.
1932.
1930.
1929.
Calendar YearsTotal rev,from tramp
$5,983,065 $6,980,990 $7,401.556 $8,150.218
Total rev,from other ry.
427,852
402.386
operation
288,484
429,237
Total ry. oper. rev_
$6,271,549 $7,383,376 $7,829,407 88,579.454
Deductions
Ways and structures_ _ _ _
821,582
866,799
708,909
957,829
Equipment
1,181,022
1,252,327
1,062,333
1.045.708
1.065.855
Power
976,488
1,097.043
1,115,226
Conducting transport'n- 1,923,919
2,257,017
2,309,681
2.301.818
14,332
21.456
Traffic
34,491
8,795
858,054
785,960
General & misc. exps__ _
901,970
929,279
250.730
289,635
300,405
351,183
Taxes assign. to ry. op
Operating revenue.-Non-oper. income
$430,189
123,395
$786,261 $1,287,871 $1,869,617
124,045
124,788
229,744
Gross income
Rent for leased roads_
Miscellaneous rents_ .._ _
Int. on funded debt-Int. on unfunded debt
Miscellaneous debits_ -Other charges
$553,584
55,904
1,025
839,053
585
7,425
$910,307 $1,412,651/ $2,099,361
57,995
59,162
59,298
1,167
2,621
2,049
884,514
903,848
1,026 0 5
1. 34
.8
8
735
885
7,066
9,843
8,821
5,392
Deficit
Divs.-1st pref
Sinking fund stock..
Preferred B stock_
Adjustment stock_
Common stock
$350.410
$46,562 sur$436,872sur$1,000703
248,238
310,110
840 •
1.350
134,901
224,835
108.890
544,450
91.354
Balance deficit
$350.410
$46,562
$55.997
$171.396
and 1% in stock was paid on this issue on Jan. 3 last, as
against 373'c. per share in cash and 1% in stock in each
of the 14 preceding quarters.
Henry L. Doherty has been elected President, succeeding
Edwin Nash Sanderson, who died on Nov. 9 1932.-V.
136, p. 1546.
Green Bay (Wis.) Gas & Electric Co.-Bonds Called.
All of the outstanding 1st & ref. mtge. 5% 30
-year gold bonds. dated
May 11905, have been called for payment on May 1 1933 at 100 and int, at
the First Wisconsin Trust Co., trustee, 735 No. Water St., Milwaukee, Wis.
-V.94,p.633.
-Earnings.
Indiana Service Corp.
Calendar YearsOperating revenue
Operating expenses
Other digs. incl. taxes
1932.
1931.
1930.
1929.
$3,244,846 $4,227,671 $4,778,327 $5,114,671
2,505,536 y2,895,145
3,160,272
2,280,825
z233,839
312,506
305,944
384,788
Net operating income_
Other income
$505,471
Total income
Deductions from income
Int. on funded debt.
amort.& expenses
3505,471 81,067,893 31,347,098 81.474.939
182,934
34,917
146,535
64,973
31,020,019 $1,312,111 $1,449,058
47,874
25,881
34,987
670,899
673.012
702,496
712.176
loss$348,362
Net income
32,641
Preferred dividends....
Common dividends
$248,346
200,681
$579,630
214,229
294,716
$727,845
235,952
446.019
Balance to surplus- def$381,003
$45,874
347,666
$70,685
y Including charge for retirement ($131,662 in 1931). z State and loca
taxes only.
-Undeclared and unpaid dividends on 7% and 6% preferred stock
Note.
amounted to $83,949 and $87,266, respectively at Dec. 311932.
Consolidated Balance Sheet Dec. 31,
1932,
1931.
1931.
1932.
Assets$
8
$
Liabilities-$
Plant, proP.,rights.
Capital stock
10,412,800 11,149,800
23,884,808 28,081,332 Funded debt
&it
12,801,500 12,848.486
Public Improvem't
Ry.lines aband- 3,554,299
assessments..,_ 340,565
Cap,stock disct.&
363,375
306,991
Notes payable to
expanses
Invest. In and adv.
parent company 2,804,700
62,801
Adv.fr. atilt. cos__
to anti. cos
2,537,700
130,891 Current liabilities- 880,886
17,021
Misc. Investments
666.587
57.307
2,234
Special deposits.-Deferred Credits..
704,425 Reserves
Deferred charges- 523,661
1,236,086 1,441,799
205,976
Non-curr, recs.ire. 187,080
Contrib. for exten. 205,409
990,859 Surplus
Current assets.... 806,046
688,068 1,878,546
14,673
Sink.& retir.funds
672,324
Rec. sec. at cost..
Total
29,370,015 30,594,503
Total
x Less reserve of 383,300.-V. 136, P. 157.
29,370,015 30,594,503
Interborough Rapid Transit Co.-Decision Uphold.
Tee U. S. Supreme Court March 4 refused to review the action of Judge
Martin T. Manton. senior judge of the U. S. Circuit Court of APPwas
In New York City, in taking jurisdiction of the equity receivership proceedings against the company. The application for review was made by the
Reimer Holding Co., Inc., holder of $13,000 in Interborough 7% notes
which were defaulted Sept. 11932.
The Reimer company questioned the right of Judge Manton to appoint
himself district judge to handle the Interborough proceedings. It also
challenged the decision of the Circuit Court which held it could not bring
a mandamus against the judge to prevent his sitting in the case -V. 136.
p. 841.
Lexington Utilities Co.
-Rescinds Dividend.
The directors have voted to rescind their recent action on the March 15
dividend on the 6%% cum, pref. stock, par $100. This company is a
unit of the Middle West Utilities system.
The last regular quarterly payment of 1%% was made on the above
Issue on Dec. 15 1932.-V. 135, P. 0165.
Lone Star Gas Corp.-Tenders.
The Union Trust Co., trustee, Pittsburgh, Pa., will receive tenders on
or before noon March 20 for the sale to it of 15
-year 59' s. f. debenture
bonds dated May 1 1927 to an amount not exceeding in the aggregate
$700,841. at prices not in excess of 102% and int.-V. 136, p. 1200.
Financial Chronicle
Volume 136
Louisville Gas 8c Electric Co. (Del.).-Earnings.----
For income statement for 12 months ended Dec. 31 see "Earnings
Department" on a preceding page.
-V. 136, P. 158.
Louisville Ry.-Earnings.1929.
1930.
1932.
1931.
Calendar YearsRev,from transp. (cars) $2,928,539 $3,449,717 $4,109,372 $4,416,844
224,487
268,334
275,541
259,059
Rev. fr. transp. (buses)_
179,571
184,052
177,162
146,376
Other opor. revenues--Total oper. revenues__ $3,333.974 $3,902,420 $4,561,758 $4,820,902
.
3,255,371
2,614,544
2,978,130
Oper. expenses (cars) _ _ _ 2,151,570
226,964
210.322
225,197
229.793
Oper. expenses (buses) __
Net rev. from opera- - $955,441 31,062.678 $1,353,834 • $L355,209
321,000
461,000
412,000
469,500
Taxes
$634,441
$894,209
$650,678
$884,334
Net operating income_
Non-oper. income
9,395
19,245
46,575
89.666
Gross income
$669,923
$643,836
$930.910
$983,875
& notes
Interest on bonds
502,784
512,775
633,750
579,598
Miscellaneous debits_ _ _
5,970
500
739
957 •
Bal, avail, for divs. on
stocks
$140,552
$344,155
$156,409
$350,355
Condensed General Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
Assets
5
$
Road & equipm't _18,414,632 18,490,298 Pt. stk., 5% cum. 3,500,000 3,500,000
Invest. in atIll. cos.
Common stock__ 8,323,600 8,323,600
Louisville & InFund, debt, bonds 9,035,000 9,035,000
terurban RR_ 4,011,409 4,038,886 Fund, debt, equip.
Ky. Carriers,Inc 136,500
133,180
136,500
71,090
trust notes
Peoples Tr. Co_
1
721,555
1 Current liabilities_
482,192
Other investments
25,524
1,596
25,523 Deferred liabilities
1,469
Current assets_ ___ 1,160,235 1,171,619 Unadjusted credits 1,943,919 1,750,925
Deferred assets___
147,000
147,000 Corporate surplus_ 1,288,723 1,244,597
Unadjusted debits 750,694
700,628
Total
24,645,994 24,710,454
24,615,994 24,710,454
Total
-V. 134, p. 1953.
Marconi International Marine Communication Co.,
Ltd.-Smaller Distributionfor 1932.
The Company has declared a final dividend of 23i%, less tax. on the
ordinary registered shares for 1932, making a total of 7Si% for that year,
compared with 10% paid for 1931 and 15% for 1930.-V. 134, p. 1760.
-New Director, &c.
Midland United Co.
Morse Deliplain has been elected a director, succeeding Britton I. Budd.
Other directors were re-elected. They are John N. Shannahan, Laurence
K. Callahan, William A. Sauer and Nicholas P. Zech.
At a mooting of
the board of directors on March 3, membership of the board was reduced
from nine to five.
President John N. Shannahan said: "During the past the company
was confronted with the extremely difficult problem of meeting the payment
of more than $7,000,000 of notes which matured during the year. The
obligations were unusually large last year and the problem of paying them
was aggravated by the default of Middle West Ultlities Co. on a large
subscription of common stock upon which the company had relied to meet
a portion of these maturities. With this default in common stock subscription payments and with the sharp decline In earnings, the company
was forced to increase its borrowings rather than decrease them. New
obligations were incurred to pay off the notes.
"The company has approximately $1,000,000 of obligations that must be
paid this year and we do not yet know where we will get the money. Normally, we could expect to accomplish this in part, at least, from earnings
from subsidiaries in the form of dividends on their common stock. Under
present conditions, however this is virtually impossible and we do not
see any evidence of immediate improvement.
"The period of rapid physical expansion through which this group of
companies has been passing has been terminated, and we intend to devote
our time and attention to the development of the present properties."
V. 136, p. 158.
Mississippi Valley Utilities Corp.-Files Schedules.
-
Tho corporation, which recently was adjudged bankrupt has filed in
Federal Court at Wilmington, Del., a schedule listing liabilities of $719,366
and assets of $463,912, mostly in real estate.
-V.136. p. 1015.
Northern Indiana Public Service Co.
-Board Reduced.
At the annual meeting of stockholders held on March 2, the by-laws
were amended reducing the number of directors from nine to seven. The
following directors were re-elected: John N. Shannahan, Edwin J. Booth,
Laurence K. Callahan, Morse DellPlain, Samuel E. Mulholland, William
A. Sauer, and Bernard P. Shearon.
Calendar Years1932.
1931.
1930.
1929.
Operating revenue
$12,216,707 $14,372,877 $14,775.118 $14,256,419
Operating expenses
6,521,723
5,706.910
7,089.704
7,109.150
Charges for retirement_
871,360
931,101
885.295
Uncollectible bills
64.260
64,088
69,486
Taxes
1,447,800
1,486,258
1,471.598
1,474,352
Net operating income_ $1,247,184 $6,244,089 35,218.626 $1,718,136
Other income
359,023
689,037
714,831
502,269
Total income
34,606,207 $6,933,126 $5,933.457 $5,220,405
Other deductions
198.757
496,151
107.682
316 188
Interest on funded debt- 2,559,664
2,710,554 2,155.403
1,567.083
Int. charged to construe_
C:2,113
Net income
7
6
5
pref. dividends
pref. dividends
% pref. dividends__ _
Common dividends
$1,849,899
1,375,377
Balance to surplus__
Surplus Dec.31
Shares cont. stock outstanding (no par)__..-
451,718
$22,805
411,484
3,726.421 $3,670,372 33.337,134
488,019
479,507
488.971
683.200
468,243
378,441
142,647
141,911
109.747
2,258,588
2,521,305
2.315.462
1
$153.967
2,013,773
$59.406
1,141,206
$14.513
1,081.365
1,806,870
1,806,870
1,806,870
1,596,870
Earnings per share
$0.26
$1.34
$1.43
$1.47
Summary ofSurplus Account Dec. 31 1932.
Balance Dec.31,1931 per books
$2,013,773
Provision for lo.sges on deposits in closed banks
595.000
Write-off of appraisal expense applicable to prior period
386,077
Res.for miscell. Investments. as determined by board of directors
250,000
Provision for injuries and damages applicable to prior period
155,000
Employees'savings fund liability assumed
111,059
Miscellaneous direct items (net)
127,957
Balance
3388.680
Net income for the year (as above)
22,805
Bal. Dec. 31 '32 (subject to the adequacy of the res. for &pr.)
3411.484
Consolidated Balance Sheet Dec. 31.
1932.
1931,
$
LiabilUles84,632,768 87,403,925 Capital stock___
Cap,stock disct.
Funded debt-and expense__ 1,568,357
Deferred liablls.
Investm't In subAssessments_
sidiary cos_ .._ 2,295,573
Cum Hal:111[1es_
deposits.
16,054
Special
Contributionsfor
Other assets.- 3,127.112
extensions ___
Subscr. to corn.
Reserves
Stk. Midland
Surplus
2,900,000
Utility Co.._
6,554,093
Delerred charges 5,302,553
Current assets__ 3,096,774 6.914.123
Assets
Investments
100,039,191 103,772,140
Total
-V. 136, p. 159.
Total
1932.
1931.
$
42,976,700 43,185,300
50,002,500 60,970,000
984,198
302,350
3,453,483
4,101,461
250,779
1,060,047
411,484
250,366
2,948,891
2,013,773
100,039,191 103,772,140
1719
North American Edison Co.
(& Subs.).-Earnings.Calendar Years1932.
Gross earnings
$85,651,289
Oper. expenses & taxes_ 43,485,490
Interest charges, &c
15,593,797
Pref. divs. of subs
4,987,455
Minority interests
1,045,784
Depreciation reserve_ _ _ 12.173,371
1931.
1930.
1929.
$94,672,968 399,326,7273100,336,561
48,606,495 50,713,568 52,274,345
13.976,278 13,340,239 11,601,553
5,060,453
4,942,736
4,812,041
1,349,983
1.642,052
1,805.019
11.293,399 10,996,263 11,030,692
Net income
$8,365,392 314,386,361 $17,691,870 318,812.911
Preferred dividends_ _ _ _ 2,205,960
2,183,474
2,059.215
1,836.661
Common dividends
6,698,000
6,016,000 7,556,500 10.672,000
Balance, surplus
def$538,568 $6,186,887 $8,076,155 $6,304,250
Shs. com. outst.(no par)
490,000
470,000
470.000
460,000
Earns. per sh. on com_ _ _
$25.96
$12.57
$33.26
$37.34
Consolidated Balance Sheet Dec. 31.
1932.
1932,
1931.
1931.
AssetsLiabilities$
5
$
Prop'ty & plant_560,077,750 556,084,147 aPref. stock__ 36,766,000 36,766,000
Cash and securiCommon stock_b49,000,000 c33,089,870
ties on deposit
Pf.stIts, of subs_ 81,422,570 82,125,591
with trustees_ 2,412,174
1,812,576 Min. int. In cap.
Investments __
564,424
552,165
& sur.Of subs_ 13,583,034 13,669,617
Cash
11,612,820
8,527,021 Fund. debt (co.) 52,913,000 52,993,000
U. S. Govt. sec_ 3,054,453
2,025,469 Fund.d't (subs.)225,637,499 214,069,463
Notes di bills reDue to Mill. cos. 4,246,291 25,762,271
ceivable
357,722 Notes&bilis pay.
377,765
2,000
Accounts receivAcc'ts payable__ 1,815,152
2,403,055
9,751,248
able
9,066,821 Sundry cur. liab. 3,388,968
3,504,943
Material As supTaxes accrued__ 9,112,714
9,190.108
plies
7,750,465
8,592,487 Interest accrued 2,727,061
2,591,111
Discount & exp.
Divs. accrued__
759,385
700,183
on securities
13,092,918 11,785,300 Sundry accrued
Prepaid acc'ts.
liabilities _--85,207
82,852
&c., deferred
Deproc. reserves 73,566,749 67,397,468
charges
689,240
676,599 Other reserves__ 8,719,911
8,181,801
Capital surplus_
171,146
171,140
Undivided prof_ 45,456,312 46,792,086
Total
609,370,999 599,492,566
Total
609,370,099 599,492,566
a Represented by 367,660 shares, no par value. b Represented by
490,000 shares, no par value. c Represented by 470,000 shares, no par
value.
-V. 135, p. 3356.
North American Light & Power Co.(& Subs.).-Earns.
Calendar YearsCombined gross earns_
Less inter-co. items
1932.
1931.
1930.
1929.
346.518.577 $47,419,444 $46,131,765
214,741
261.599
324,962
Gross earns fr. oper_340,893,594 $46,303,836 347,157.845
Exps , maint. & taxes__ 23,062,283 25,069,460 25,819,494
Net earns, from oper_317.831,311 $21,234,376 $21,338,351
Other income
178,865
1,517,200
187,780
Total net earnings_ --$18,010,176 $22,751,576 $21,526,131
Rentals
1,199,215
Int. on bonds, &c., and
amort. of debt disct__ 8,760,058
8,504,239 8,000,204
Div. on pf. stks. sub. cos 4,035,019
4,099.166
3,980.308
Allow,for minor.stk
Cr11,419
Cr599
1,587
Balance
$5,226,518 38.949,555 39,544.032
Appropriated for deprec.,
retirements, &c
' 3,202,428
3,300,585
3,175,549
Int, on bonds of North
Amer. Lt. & Pow. Co_ 1,756,381
1,433.018
958,528
$45,806,802
25.434,456
$20.372,347
Dr78,614
$20,293,733
8,863,732
3.687,279
2,046
37.740.676
3,064,561
Bal. avail, for diva, on
Nor.Am. Lt.& Pow.
Co. stocks
.$267,709 $4.215,952 $5,409,956 34,676,115
Div. on N. A. Lt. & Pr.
Co. pref. stock
564,612
1,212,000
1,159.500
1,113,860
Surp. after pref. div__def$316,903 $3,003,952 64.250.456 $3,562,248
Consolidated Surplus Statement Dec. 311932.
Balance Dec.31 1931
Net amount of transactions and adjustments reflected in adjusted $3,320,111
balance sheet as at Sept. 30 1932, made effective by vote of
common stockholders Dec. 20 1932
x4.066,182
Balance of income for year ended Dec. 31 1932
267.709
Profit on retirement of funded debt
2(}1,093
Total
$7,858,095
Dividends on preferred stock
584.611
Common (paid by issuance of 17,752.19 shares)
443.804
Additional reserves against accounts receivable, &c
241,738
Other charges (net)
115,253
Balance Dec. 31 1932
36.472,686
x As follows: Credit arising from reduction of stated value of North
American Light & Power Co. common stock, $33,281,832: less
amount
appropriated for special property reserve, 322.819.745; amounts written
off or reserved in respect of investments in and advances to
other companies, &C.. $5,262,288: adjustment in connection with
retirement Of
preferred and common stock of North American Light & Power
December 1932, after application of $1,233,340 of capital surplus Co. in
arising
from the issuance of common stock in 1932, 331.595:
reinstatement of
retirement reserves previously transferred to surplus, $887.020: reserved
against accounts receivable, balances in closed banks, &c..
$215,000.
Consolidated Balance Sheet Dec. 31.
Assas-
Prop.accrs..rts.,
1932,
$
1931.
$
franchLses,&c_306,523,608 303,990,563
Cash de secs. held
by trustee... 2,148,978
32,354
Inv, and adv__ 13,981,727 17,880,346
Sinking funds
115,562
Special deposits_
1,755,333
Cash
2,678,168
6,364,086
Notes and accts.
receivable__
5,060.201
6,849,365
Mans & suppl's 2,738,523
3,634,451
Unamortized dt.
dint. & exps_ 6,436,515
5,826,737
Re-acquired 8m
6,123,380
Adv, to officers
& employees.
86,515
Deferred charges
& Prepd. exps
994,346
814,761
Total
340,648,581 353,386,938
1932.
Liabilities-
$
1931.
$
Funded debt_ _192,516.800 189,164,226
Preferred stocks 80,986,092 83,799,773
Min. int. In CAD.
& suf. of subs_
33,387
31.926
Common stocks 8,938,085 42,773,975
Com,stock scrip
10,992
47,224
Cont. stock divs.
payable
855.503
Notes payable_ 2,500,000
8,219.527
Accts. Payable_ 1,722,790
2,232,713
Consumers' deps 1,097,058
1,151,745
Pref. stock diva.
payable
653,708
Accrued taxes._ 1,991,756
2,285,011
Accrued int. and
dividends_ ___ 2,565,688
2,421,526
Other cum Nab_ 1,034,088
Deterred HAWN_
845,188
658.665
Retirement res_ 12,117,580 12,296,521
Spec, prop. res. 22,819,746
Other reserves__ 4,996,644
3,474.784
Earned surplus_ 6.472,685
3,320,111
Total
340,648,581 353,386.938
x Represented by 1.787.617 shares of no par value
In 1932 (1931. 1,710.959 shares).
Note.
-North American Light & Power Co. is contingently
liable as
co-guarantor with the United Light & Railways Co.
and Lone Star Gas
Corp. of notes payable of Northern Natural Gas Co.
317.000,000 which will mature on March 1 1933. and in the amount of
for the extension
of which to Sept. 1 1933 arrangements have been made.
-V. 136. p.1376.
Northern States Power Co. (Del.).
-Earnings.
For income statement for 12 months ended Dec.
31 see "Earnings
Department" on a preceding page.
-V. 136, p. 159.
Philadelphia Co.
-Earnings.
For income statement for 12 months ended Dec.
31
Department" on a preceding page.
-V. 136, p. 843.
see
"Earnings
1720
Financial Chronicle
Providence Gas Co.
-Bonds Called.The company has called for redemption at.1043i and int., its entire issue
of 1st mtge. 53i% 20-year bonds clue Jan. 1 1942. Announcement was
made that the company is prepared to anticipate redemption of the bonds
for cash on a 1% discount basis.-V. 136, P.843.
Public Service Co. of Indiana.
-New Director.
Bernard P. Shearon has been elected a new member of the board of
directors filling a vacancy caused previously by the resignation of George
F. Mitchell.
-V. 136, p. 658.
Public Service Co-ordinated Transport.
-Earnings.
Calendar Years1930.
1931.
1932.
1929.
Operating revenues
$23,885,244 $26,329,842 $29,565,070 $34,732.658
Operating deductions_ _ _ 21,444,263 22,928,500 25.937,268 28,588,849
Operating income- _ $2,440,981 $3,401,342 $3,627,802 $6,143,809
Non-oper. income
145,463
117,358
84.714
144.166
Gross income
32.525,695 $3.518,700 33.773.265 $6.287,975
Income deductions (int..
rents, &c.)
3,953,552 4,141,016 6,765,202 6,531,227
Net deficit
-V. 135, p. 297.
$1,427,857
$622,316 $2,991,936
$243,251
Public Service Electric & Gas Co.
-Earnings.
-
Years End. Dec. 311932.
1931.
1929.
1930.
Operating revenue
394,984.623 $98,779,405 $97.517,662 $94,286,063
Oper. exps. and taxes- -- 47,370,357 49,982,042 50,449,350 51,290.088
Retire. exps.(depre.,&c.) 7,972,521
8,277,670 8,140,924 7,845,147
Operating income_ _ __$39.641,743 $40,519,693 $38,927,387 $35,150,828
Non-oper. revenue
2,201.556 2,089,559 2,623,771
3,124,008
Non-oper. rev. deduct
1,852
1,543
29,200
29,305
Non-oper. Income_ _
$2,199,704 $2,088,015 $2,594,466 $3,094,808
Gross income
$41,841.446 $42,607,708 $41,521,854 *38,245.637
Bond Mt., rentals and
miscall. int. charges 10,988,128 11.181,331 10.423,513 9,698.223
Approp. acct. adj. ofsurplus accts.(excl. dive.) Dr.9,047 Cr.50,610 Cr.284,997 Cr.718.166
Total
$30,844,271 *31.476.987 $31,383.339 $29,265,580
7% cum. pref. stk. dive_ 1,400,000 1,400,000
1,400,000 1,400,000
6% cum. pref. stk. diva_
1.095,240 2,418,949 3,104,358
$5 cum. pref. stk. dive_ 1,500,000
750.000
Common stock divs
27,440,000 27.040,000 34.957,500 20,039,061
Surplus
$504,271 $1,191,747def$7393.111 $4,722,159
Surp. begin, of period_ _ _ 14,782,147 13.590.400 20,983.511 16,261,352
Surplus end of period_$15,286,418 $14,782,147 $13,590,400 $20,983,511
Comparative Balance Sheet Dec. 31.
1932
1931.
1932.
1931'
Assets
Fixed property_359,778,138 354,167,782 7% pref.stock__ 20,000,000 20,000,000
Investments --_ 30.619,895 30,611,192 $5 pref.stock _ _ 30,150,000 30,150,000
ReacquIr. seem._
2,914,000 Common stock 181,500,000 181./00,000
Sink. fund. &c648,874
590,503 Funded debt.._114,789,400 119,289,134
Cash
11,787,237 14,226,025 Accts. payable_ 1,230,657 1,313,453
U.S.Treas. dill.
Custom. depos_ 3,986,875 4,356,691
of indebted
2,000,000
Misc. curr. flab.
3,791
4,111
Notes receivable
9,021 Accrued taxes_ _ 5,446,689 4,200,833
4,830
Accts. receiv'le, 10,806,375 10,829,343 Accr. interest.. 1,537,776 1,526,848
Int. dc divs. rec.
222,353 Misc. accr. nab_
233,261
701,464
695,726
Marls & sunlit_ 4,656,544 4,977,163 Reserves
61,923,674 57,356,725
Miscell. assets_ _
179,821
189,760 Surplus
15,286,418 14,782,147
Deferred charges 15,836,350 16,443,943
Total
436,551,324 435,181,086
-V. 135, p. 4215.
Total
436,551,324 435,181.084
Rio Grande Valley Gas Co.
-Plan Opposed by Bankers.-
Estabrook & Co. are urging holders of the first mortgage 7% bonds, due
April 1 1937, not to deposit under the company's plan for Lather readjustment of the present sinking fund provision established as the result of a
scaling down in accordance with a plan put into effect the latter part of
1931. The bankers believe that under the plan the security for the bondholders is being unduly diluted in favor of the junior security holders through
the possible further drain of the company's cash resources.
Continued disbursements to the junior security holders, they believe,
may so weaken the company's current position as to endanger interest
payments on the first mortgage bonds and threaten receivership. They
also further disapprove of the payment of any commissions to bankers for
obtaining the consent of bondholders to the company's plan.
Estabrook & Co. would approve a readjustment plan which would permit
the company during the current year to conserve all its earnings and
build up cash reserves; provide that preferred stock be taken for current
notes except for about $160,000; that all net earnings shall be applied to
retire first mortgage bonds and notes pro rata; that any funds set up as
depreciation reserve shall be used for extensions and improvements to
property. or for retiring bonds or notes proportionately; and that no diva.
shall be paid on the company's stock until arrears in sinking funds have been
paid, in accordance with the original terms.
-V. 136, p. 1548.
Southern Colorado Power Co.-Earnings.
For income statement for 12 months ended Dec. 31 see "Earnings
Department" on a preceding page.
-V. 136, p. 1201, 160; V. 135, p. 4035,
3357.
United American Utilities Co.
-Receivership.
--
Chancellor Josiah 0. Wolcott at Wilmington, Mar. 3, appointed Harry
C. Mahal) Jr. of Wilmington and Ralph J. Ritchie of Asbury Park, N. J.,
,
receivers. The company agreed to the receivership.
-V. 135, p. 1655.
United Rys.& Electric Co., Balto.-Payment of Notes.
-
Judge William C. Coleman of the U. S. District Court at Baltimore,
Md., has authorized the receivers for the company to pay $165,939 on two
notes, one of which is due the J. G. Brill Co. of Philadelphia for $111.204
consisting of principal and interest payable on the balance owed by the
company on the purchase of 100 street cars bought in 1930. The Cincinnati Car Corp. receives $54,735. The latter amount is a payment on cars.
The Brill payment will be made on March 15 and the Cincinnati Car Corp.
on April I.
-V. 136, p 160.
United States Elec. Power Corp.(Md.).-New Director.
Frank B.Common.K.C.,ofthe firm of Brown, Montgomery & McMichael
of Montreal, and President of Hydro-Electric Securities Corp., Ltd.. has
been elected to the board of directors of United States Electric Power Corp.
to fill the vacancy caused by the resignation of Baron Bruno Schroder of
J. Henry Schroder & Co., London, who are still represented on the board
by John L. Simpson, Vice-President of J. Henry Schroder Banking Corp.,
New York.-V. 136, p. 1550.
The entire plant has been duly maintained and is in good operating
condition. Company's facilities are estimated to have a capacity for
an annual business of approximately 2;4 times the volume of 19:32. Even
a slight turn for the better in the general business of the country should
be favorably reflected in the company's revenues.
Comparative Income Account for Calendar Years.
1932.
1931.
Operating revenues, landlines and cables
$83,013,712 *108736,949
Expense of conducting operations, such as wages
of operators and other employees, rents of telegraph offices,stationery and messenger expense_ 61,234,655 78,719,385
Repairs of telegraph lines, ocean cables, equipment
and buildings
Provision for depreciation of plant and equipment_ 7,984,834 9,834.361
3,922,000
4,221.001
Taxes
3,478.000 3,512,000
Operating income
$6,095,222 $12,749,203
Income from dividends and interest
1,568,251
1,810,297
Gross income
$7,663,473 $14,559.500
Payments to leased and merged companies for use
of telegraph properties; miscellaneous interest,
and other deductions
3,149,947 3,227,685
Interest on bonds
5,356,121
5,357,315
Net income
def$842,595 $5,974,500
-V. 136. p. 1201.
West Penn Electric Co.(& Subs.).-Earnings.
-
Calendar Years1932.
1931.
1930.
1929.
Gross earnings
$30,294,923 $35,739,114 $39,493,393
Oyer. exp., maint. & tax 15,739,759 18,749,350 21,334,161 $40,276.535
Interest & amortization_ 5,515,580 5,539,946 5,766,653 21,141,494
5,610,212
Preferred dive. of subs
2.744.281
2.747,997 2,744,861
2.469.963
Deprec. & depletion__ _ _ 1,910,596 2,289,467 3,339.456 3,418.525.
Net income
$4.384,708 $6,412.355 $6,308,261 $7,636,340
-V. 134. p. 3637.
Wisconsin Michigan Power Co.-Earnings.
-
Calendar Years1932.
1931.
1930.
1929.
Operating revenues
J$2,899,865 f$3,304,036 $3,528,184 $3,447,471
Non-operating revenues.(
1
2,586
21,893
28,137
Total revenue
$2,899,865 $3,306,622 $3,550.077 $3.475,609
Oper. expenses & maint_ 1,036,600 1,207.795
1,370,652 1,377,569
Deprec.(reserve credit)_
417,215
409,283
419,691
369,364
Taxes
521.053
484.808
478,363
447,097
Int. on funded and unfunded debt
491,018
547,143
580,265
553,405
Net income
$433,979
$657.594
$701,106
$728,174
Preferred dividends_ _
224:832
202,508 -Not Reported
Condensed Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
Assets$
LiabilliiesProperty and plant21,915,570 21,975,961 6% pref.stock__ 3,890,200 3,869,700
*Securities of co__ 146,500
115,300 Common stock ($20
Other investments
39,200
39,200 Par)
5,225,000 5,225,000
Duefrom MM.cos.
20,151
213,874 Funded debt
10,000,000 10,000,000
Cash
35,518
27,965 Due to aril'. cos
196,599
2,066
Deposits for payAccounts payable_
71,847
107,568
ment of matured
Sundry curr. liab. 261,000
290,212
interest, &c_
127,587
15,000 Accrued liabilities_ 358,145
357,931
Accounts receiv_ .. 267.703
285,733 Deprec. reserve_ 2,005,836 2,112,588
Material & supplies 104,238
126,467 M Been. reserves
325,051
323,865.
Prepaid & suspense
Prem. on pref. stk.
56,005
56,415
421,426
609,541 Surplus
accounts
1,232,784 1,232,157
Discount and ex
362,585
posse on secur
350,451
23,428,348 23,771,628 Total
Total
23,428,348 23,771,628
* Includes the following securities of WIscinson Michigan Power Co.:
Preferred stock, 6% series, 1932, 1,465 shares; 1931. 1,153 shares.
-V.
136, p. 494
Wisconsin Power & Light Co.-Rescinds Dividends-Par
Value of Common Stock Decreased-New-Dareebers.-
Due to the bank holiday, the directors on March 9 rescinded their recent
declaration of dividends on pref. stocks for payment March 15 and have
deferred any further action on dividends until the situation is clarified.
At the annual meeting of the stockholders held March 9, the amendment
to the articles of incorporation was adopted reducing the par value of the
146,185 common shares outstanding to $50 from $100. A substantial part
of the capital surplus of $7.309,250 thus created will be used to write off
property abandonments and for other balance sheet adjustments.
A. P. Gale and R. G. Walter were added to the board of directors. See
V. 136, p. 1550.
INDUSTRIAL AND MISCELLANEOUS.
Price of Refined Sugar Advanced.
-Revere, American, National and
Pennsylvania Sugar Refineries have advanced the price of refined sugar
20 points to 4.10 cents a pound. Boston "News Bureau," March 9, p. 2.
-American Smelting & Refining Co. had
Price of Lead Advanced.
advanced price of lead 25 points to 3.25 cents a pound. March 9, p. 10.
Matters Covered in the "Chronicle" of March 4.-(a)49 companies increase
earnings despite depression, p. 1445; (b) Report on cigar Industry to be
issued by U. S. Tariff Conunission, p. 1451; (c) Price of Spud Cigarettes
reduced to 15 cents a package from 20 cents, p. 1451.
Aetna Life Insurance Co.
-Comparative Bal. Sheet Jan.l.
1932.
1933.
Andsa
10,173,572 6,432,481
Cash
25,038,157 20,570,684
Real estate
Mortgage loans_ 75,188,393 81,310,397
145,000
Loans on coil_
145,000
Bonds & stocks_231,468,815 235,079,423
Laons secured by
policies of this
company _ _
76,417,977 66.233,694
Prem. in course
of collection dz
deferred pt-em 18,447,589 20,261,594
Interest due Se
9,667.733 8,527,853
accrued
56,627 1,493,602
Other assets_ _ _
Assets not adCr2,105,656
mitted
United Traction Co., Albany, N. Y.-Buses to Replace
Trolleys.
The company has petitioned the Troy (N. Y.) Common Council for
Permission to abandon all trolley lines in that city and interurban lines and
substitute buses therefor. The petition involves trolley lines in Albany.
Schenectady, Watervliet, Cohoes, Green Island and Waterford.
-V. 135
p. 3693.
Western Union Telegraph Co.-Earnings for 1932.
Newcomb Carlton,President,says in brief:
The fact that the Western Union Telegraph serves practically every
Industry, and thus is an indicator of general business, is reflected by the
sharp decline of 325,723.000, or 23.7%, in operating revenues for 1932,
compared with 1931. However, total operating expenses. compared with
the previous year, were less by $19,035,000, or 20.6%. The co-operation
of the employees in bringing about this reduction is beyond praise.
March 11 1933
446,603,863 437.949,074
Total
-V. 134. p. 3826.
1933.
Liabilities
Res. under pol.
contract
354,752,801
Prem, me., accident de ilab.
department
10,182,376
Res. for claims
awaiting proof
& not Yet due. 12,536,801
Res. for Bab. &
workm. comp.
claims
16,511,336
Res.for divs.pay,
to policyhidrs. 7,627,021
Prem.pd.in adv,
dr other llab.
to policyhldrs. 2,099,742
Res. for taxes
not yet due
2,360,691
Miseell.!labs_ 3,691,523
Cont. reserves 11,500,000
Special reserve_
Deprec, reserve_
Capital
15,000,000
10,341,572
Surplus
Total
1932.
342,968,183
11.460,387
12,012,722
16,772,932
8,903,495
1,845,390
2.446,022
3,732,512
2,732,049
6,000,000
15,000,000
14,075,381
446,603,863 437,949,074
Affiliated Products, Inc.
-Reduces Monthly Dividend.
ds
A monthly dividend of 10 cents per share has been declared on the cailtd
stock, no par value, payable April 1 to holders of record March 17.
compares with monthly distributions of 13 1-3 cents per share paid from
July 1 1932 to and including March 1 1933.
'The company issued the following statement:
"Irrespective of the fact that this corporation earned its former dividend
of 13 1-3 cents monthly in January and February by a substantial margin,
the directors, as a safety measure, decided to reduce the monthly dividend
to 10 cents to conserve cash."
-V. 135, p. 3168.
Financial Chronicle
Volume 136
Aetna Casualty & Surety Co.
-Balance Sheet Jan. 1.1933.
Assets$
1,900,383
Cash
253,550
Real estate
Mortgage loans.- 986,958
Bonds & stocks 25,165,830
Prems. in coll
2,805,867
Int. due & seer__ _ 249,326
Other assets
217,987
Assets not adm't'd
1932.
1,003,824
208,700
1,039,969
26,353,499
3,721,129
257,981
490,140
Cr479,231
Total
31,579,902 32,596,011
135, p. 4386.
1933.
Liabilities-$
Premium reserve__ 8,640,821
Losses in adjustml 6,289,647
Commission res've 503,728
Reserve for taxes_ 650,713
All other nabs.-- 1,139.491
Cont.reserve
4,500,000
Special reserve._
Capital
3,000,000
Surplus
6.855,502
Total
1932.
$
10,238.738
7,371.487
654.161
435,713
1,228,944
2,151,446
3,000,000
7,515.521
31,579,902 32,596011
Ajax Rubber Co., Inc.-Foreclosure Sale.
-
Miles A. Hulett, Sheriff of Racine County, Wis., will offer the entire
property of the company for sale. March 27 at Racine, Wis. The upset
price for the property has been fixed at $548.000.-V. 135. p. 3358.
Alaska Juneau Gold Mining Co.-Earnings.
For income statement for month and 2 months ended Feb. 28 see "Earnings Department" on a preceding page.
-V. 136, p. 1016.
Allied Distributors, Inc.
-Investment Trust Average
Firmer.
The corporation's investment trust common stock index registered a
slight advance during the
1721
capital stock from shares without par value to shares of a par value of $1 per
share. The reduction in capital of $17,160,338 will be credited to capital
surplus and approximately $15,000,000 of this latter amount will be utilized
to write down good-will, trade marks, formulae, patent rights, &c., to
a nominal value of $1.-V. 136, p. 1552.
American Republics Corp.-To Sell Pennsylvania Car Co.
General American Tank Car Corp. has made an offer to the receivers
of American Republics Corp. to purchase from them the entire capital
stock of Pennsylvania Car Co. and Pennsylvania Tank Line. wholly
owned subsidiaries of American Republics Corp.
Tne offer provides that certain of the assets which are now owned by
Pennsylvania Car Co. are not to pass as assets of that company when
its stock is sold; but that such assets are to be transferred by Pennsylvania Car Co. to the receivers prior to, or contemporaneously with, the
sale. It is impossible to state now the exact nature and value of such
assets for the reason that certain nominal expenses, the precise amount
of which cannot be presently ascertained, will be incurred by Pennsylvania Car Co. and have to be paid by it, prior to the transfer of the assets
of the receivers. It is estimated, however, the assets will consist of cash
and (or) receivables of an actual value of approximately $12.000. The
offer further provides that a claim which the receivers have against Pennsylvania Car Co., represented by a demand promissory note, in the face
amount of $504,752 with interest at 6%, must be discharged prior to,
or contemporaneously with, the sale of the Pennsylvania Car Co. stock.
Sylvester D. Townsend and Joseph S. Cullinan are the receivers.
V. 136, p. 844.
--American Rolling Mill Co.
-The
-Dividends Deferred.
directors on March 7 decided to defer the quarterly dividends due next month on the 6% cum. pref. and 6% cum.
pref. stock, series B. both of $100 par value. The last
quarterly payment of 04% was made on the former issue
on Jan. 15 and on the latter issue on Jan. 1 1933.-V. 136,
p. 160.
American Safety Razor Corp.-Charges Patent InfringeAmerican Automobile Insurance Co. of St. Louis.
- ment.
The company has filed suit in the U. S. District Court at Toledo, 0.,
Balance Sheet Dec. 311932.charging the Crescent
week ended March 3. moving upward late in the
week with the general market. The average for the common stocks of the
five leading management trusts, influenced by the leverage factor, stood
at 8.71 on the latter date, compared with 8.38 on Feb. 24 and 10.73 on
Dec. 311932.
The average of the non-leverage stocks stood at 9.44 as of the close on
March 3, as against 9.35 at the close of the previous week. The average
of the mutual funds, which are usually quoted on an asset value basis.
Stood at 7.20 on March 3 against 7.35 at the close of the previous week.
-V. 136. P. 1551.
Assets
Liabilities
U. S. Government bonds.-- $553,252 Reserve for unearned prem's _ $2,506,707
State and municipal bonds__. 263,936 Reserve for liability claims
Railroad bonds
2,674,411
and claims expense
999,915
59,150
Public utility bonds
1,393,243 Reserve for other claims
Industrial bonds
227,288 Reserve for other claims exp.
11,830
Stocks
3,553,755 Res.for commissions(not due)
195,417
Premiums In course of colReserve for taxes
118,738
25,717
867,650 Reserve for other liabilities._
lection
668,657 Reserve for contingencies.... 1,174,751
Cash
33,081 Capital stock
Accrued interest
1,000,000
Surplus
794,055
Total
-V. 134, p. 2724.
$8,560,780
Total
$8,560,780
American Car 8c Foundry Motors Co.-New Member of
Executive Committee.
Walter J. Cummings has been elected a member of the executive committee of this clmpany and of the Brill Corp., succeeding William H. Woodin,
-V 134. p. 4495.
the now Secretary of the Treasury.
American Enka Corp.-Issues Checks for Its Workers.
-
The "Journal of Commerce" in a dispatch from Asheville, N. C., states:
The American Enka Corp. is issuing payroll checks in denominations of
$5 for the convenience of employees and merchants during the National
bank holiday. The system, which will quadruple work at the plant's
offices, was decided upon after consultation between the corporations'
officials and the Asheville Merchants' Association. The checks will be
used as a sort of scrip.
In display advertisements in the Asheville papers, the corporation asked
merchants of Asheville and surrounding communities to accept its checks
for cash or merchandise.
"This company guarantees that it will redeem these checks in full," the
statement declared, "and in lawful currency of the United States immediately upon resumption of banking facilities, and further guarantees everyone accepting these checks against any loss whatever."
For some time the corporation's plant has been issuing scrip for use of
employees in the company store in the community and will continue this
practice.
-V. 127, p. 3400.
American Ice Co. (& Subs.).
-Earnings.
Calendar Years1932.
1931.
1930.
1929.
Sales
$16,195,355 $19,231,535 $20,595,707 $20.804,078
Inc. from investments,
interest, rents, &c_ _ _ _
190,825
• 200.663
222,393
451,493
Total
$16,3°13,180 $19,432,198 $20,818,100 $21,255,571
Cost of mdse., oper.
expenses, &c
12,651,134 14,097,136 15,060,524 15,475,899
Interest on bonds,
_
309,830
340,869
336,776
330,280
Res.for Fed., &c., taxes
&c_183,049
331.126
452,438
413,784
Losses on sales of real
prop. & dement, of
buildings
7,790
Depreciation
1,810,064
1,831.208
1,708.091
1.604,484
Net gain
$1,424,313 $2,831.859 $3,260,271 $3,431,124
Preferred diva. (6%)- - 837,810
843,285
863.858
881,088
Common dividends
698,928
1,408,557
1.748.551
2,094,248
Rate
$1.25
$2.50
$3.00
$3.50
Balance,surplus
def$112,425
$580,017
$647,863
$455,787
Earns, per sh.on 600.000
no par shs.outstanding
$1.04
$3.55
$3.93
$4.22
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
Assets$
Liabilities-.
$
Plant,equip.,&c_33,799,182 34,213,976 Preferred stock_._15,000,000 15,000,000
380,422
430,831 z Common stock_ _15,000,000 15,000,000
Cash
Notes & accts. rec. 1,347,768 1,552,236 Bonds and intge._ 5,649,216 6,404,335
Discounts on debs- 132,860
142,946 Dividends payable 209,604
486,475
625,048
Inventories
755,512 Notes payable__
200,000
Y Inv.In co.'s secs_ 1,739,780 1,828,469 Real estate monOther investments 946.896 1,050,283
gages Current--- 271,216
Insulance fund.. • 251,528
251,528 Dep. on accts. of
6,586,042 6,583,677 sales of Prop- &o
57,721
Prep'd rents, taxes,
Accounts payable. 729,110
636,357
118,181
124,140 Accrued interest&
27,103
32,064
Fed. taxes, &c__
305,224
526,479
Res,for pay. under
Workmens Compensation Act._ 500,000
500,003
Surplus
7,978,514 8,347,888
45,927,708 46,933,599
Total
45,927,708 46,933,599
Total
x After depreciation. y Includes 10.247 (12.047 in 1931) shares of
preferfed and 40,800 shares of common stock and In 1932. $108,000 par
value 5% gold debentures. z Represented by 600,000 no par shares.
136, p. 1552.
American Home Products Corp.-Listing of New StockCapital Reducedfrom $17,832,924 to $672,100.
The New York Stock Exchange has authorized the listing of 672,100
shares of stock (par $1) (of a total authorized issue cf 1,000 000 shares),
on official notice of issue, share for share, In substitution for a like number
of shares of stock without par value previously listed and now outstanding.
The stockholders on March 7 approved a proposal to reduce the company's capital from $17,832.438 to $672,100 and to change the authorized
Manufacturing Co. of Fremont, 0., and Louis 0.
Black of Toledo with infringing on Its patents. The petition asks an
accounting of profits and damages, that the defendants be enjoined from
making, using or selling the blades, and that they be required to deliver,
all allegedly infringing blades in their possession to be destroyed or impounded by the court.
-V. 136, p. 1552.
4s---Arnold Constable Corp.-To Change Par.
-
The stockholders will vote April 4 on changing the par value of the capital
stock from no par to $5 per share.
-V. 136, p. 1553.
Associated Oil Co.
-Common Dividend Omitted.
-The
directors on March 9 decided to omit the quarterly dividend
which would ordinarily become payable about March 31
on the common stock, par $25. Distributions of 25c. per
share were made on April 15, July 12, Sept. 30 and Dec.
311932.-V. 136, p. 1019.
Atlantic Building Trust (Boston).
--Reduces Dividend.
A semi-annual dividend of $1.50 per share has been declared, payable
March 15 to holders of record Feb. 28. This compares with $2 per share
previously paid each six months.
Auburn Autwnobile Co.
-Reduces Quarterly Cash Payment
-Stock Distribution Omitted.
-The directors on March 4
declared a dividend of 50c. per share on the common stock,
no par value, payable April 1 to holders of record March 21.
This compares with 2% in stock and $1 per share in cash
paid each quarter from Jan. 2 1928 to and incl. Jan. 2 1933.
-V. 136, p. 661.
Automobile Insurance Co. of Hartford, Conn.
-Balance Sheet Jan. 1.1933.
1932.
Assets$
$
Cash
1,398,981 1,070,345
Real estate
71,200
66,700
Mortgage loans._
39,400
43,700
Agents' balances 1,859,165 2,338,299
Int. due & accrued
94,385
107,628
Other assets
538,051
696,215
Stocks and bonds.15,984,153 16,717,709
Assets not admit'd
Cr.330,156
Total
19,985,336 20,710,440
-V. 134, p. 2151.
1933.
Liabelities-$
Premium reserve._ 4,691,328
Loss in adjustment 1,519,331
Reserve for taxes. 364,665
All other liabilities 264,377
Contingency res've 3,350,000
Special reserve.... 1,750,000
Capital_
5,000,000
Surplus
3,045,636
Total
1932.
5,287,956
1,768,577
367,466
283,073
1,500,000
1,510,887
5,000,000
4,992,482
19,985,336 20,710,440
Aviation Corp. (Del.).-American Airways Up 75% in
February Passengers.American Airways carried 5,598 passengers in February, all increase of
75% over February of last year. President L. D. Seymour announced on
March 8. Pounds of air express carried with the company showed the
tremendous gain of upward of 200% over February of last year.
In making the announcement, Mr. Seymour said that indications were
the company would break all records in passengers carried and number of
pounds of air express transported throughout the year. A 90% increase
was registered in air express by American Airways in January and a 40%
increase in passengers over the previous January.
Mr.Seymour pointed out that the company was co-ordinating its schedule
to provide even better service to the public and that the addition of raw
lines recently had greatly broadened its territory. Considerable new
equipment of the finest and most modern type has been added. Flying
more than 35.000 miles daily, American Airways now reaches into 74
major American cities extending from Canada to Mexico and from coast
to coast.
He pointed out that the company is anticipating a greatly increased
amount of business through air express during the year. This form of
transportation is now being used by hundreds of merchants and manufacturers, he said, and new firms are being added daily.
General Air Express, an interline air express service operated
leading airlines, of which American Airways is the backbone, by seven
has now
made it possible, he said, for merchants and manufacturers to ship their
products from almost any point in the United States to any other point
within 24 hours time.
General headquarters of the American Airways, Inc., have been moved
from New York City and St. Louis to Chicago, according to Mr. Seymour.
Aviation Securities Corp. of
Change Par.
-
New England.
-To
The stockholders will vote April 5 on reducing the amount of capital o
the corporation to $150,000 from $750.000, and on changing all of the shares
of stock of the corporation, all of which are now without par value, into
an equal number of shares thereof of the par value of $1 each. There are
ssued 150,000 out of the 500,000 shares authorized.- V. 129, p. 131.
Bence Commerciale Italiana, Milan, Italy.
-Div. Dec.
The directors will propose at the meeting of the stockholders to
March 25 a dividend for 1932 of 25 lire, equal to 57. This he held
with 8% paid last year for 1931 and with 12% paid for 1930 compares
'
and previous years.
For 1932 the bank reports undivided profits of 37,438,000 lire, as cornpared with 61,559.000 lire for 1931.-V. 134, p. 1198.
Financial Chronicle
1722
Benjamin Franklin Hotel, Phila.-Fights Receivership.
Federal Judge George A. Welch at Philadelphia took under advisement
March ha motion by the Benjamin Franklin Realty & Holding Co. and the
Benjamin Franklin Hotel Co. for the dismissal of a bondholders' suit for a
receivership for their affairs.
Counsel for the hotel companies contended that the bondholders had no
standing in a receivership suit. Such action, they held, should be undertaken by the Real Estate Land Tide & Trust Co., which is the trustee
of the first and second mortgages, totaling $10,000,000 on the hotel prop-V. 136, p. 1379.
erty.
Bigelow-Sanford Carpet Co., Inc.-New Director.
--V. 136, p. 1379.
Roger Amory has been added to the board of directors.
-To Change Par.
".Bohn Aluminum & Brass Co.
'The stockholders will vote .Maretr SO on a proposal to change the authorized capital stock from 375,000 share9 of no par value to the same number
V. 135. p. 2658.
of shares with a par value of $5 each
Boonton (N. J.) Rubber Co.--Auctioned.--
The real estate, buildings and machinery of the company were sold for
$66,000 at public auction at Boonton, N. J., to Mayor Oscar P. Myers,
representing the Boonton Trust Co. The remainder of the property, consisting of tools, loose equipment and accounts receivable, was acquired for
$13,000 by.the Techard Manufacturing Co. of New York.
-Cent Dividend.
-25
Bornot, Inc.
The directors recently declarel a dividend of 25 cents
$2 cum. panic. class A stock, payable Jan. 12 1933 to
the same date. The last previous payment on this issue
made on Dec. 18 1931. applicable to the period June 30
Dec. 31 1927.-V. 135, p. 1658.
per share on _the
holders of re'ord
was $1 per share,
1927 to and incl.
-New Member of Executive Committee.
Brill Corp.
-V. 136, p. 845.
See American Car & Foundry Securities Co. above.
-Class A Dividend Postponed.
• Bucyrus-Monighan Co.
The directors, due to existing financial difficulties and banking conditions, on March 9 decided to postpone until a later date consideration
of the quarterly dividend due April 1 on the $1.80 cum. class A stock,
no par value. The last regular quarterly payment of 45 cents per share
was made on this issue on Jan. 2 1933.-V. 135, p. 4563.
--Earnings.
Burroughs Adding Machine Co.(ex Subs.).
x1929.
1930.
1931.
1932.
Calendar YearsGross profit on sales of
mach., service, parts.
accessories,suppl.,&c. 57.990.159 314,426.410 $23,319.717 $29,503,446
964,060
1,215,513
827,677
816.788
Other income
58.806,947 515,641.922 524.283.777 $30,331,124
Total income
Sales gen. & misc. exps_ 7,992,471 11,023.695 15,567,150 17.143.475
580,076
1,211.136
1,503,092
159,147
Prov.for U. S. Fed. tax_
Net profit
Surplus at Jan. 1
Conting. reeve adjust_
Total
Dividends
Patents written off
Surplus adjust. (net)
5655.329 34,038.151 37,505,490 $11,684,556
9.007,090 10,001,787
9,130,507
7,502.293
812,375
58,157,623 313.168.657 316,512.580 522,498.719
7,382.073 10,392.417
4,903.015
3,406,690
3,099,212
763,350
341,826
Profit & loss surplus__ 55,092.759 57,502.293 $9,130,507 $9,007,090
5,000.000
5,000,000
5,000,000
Shs.com.stk.out.(no par) 5,000.000
$1.50
$2.33
$0.80
$0.13
Earned per share
x For making comparison with previous consolidated income accounts,
the amounts shown as "Gross profit on sales" and as "Sales, general and
miscellaneous expenses," should each be decreased by $10,717,127, representing certain items now included under the latter heading, but formerly
deducted before determining the amount of "Gross profit on sales."
Balance Sheet Dec. 31.
1931.
1932.
1931.
1932.
Liabilities$
$
Assets:Plant,equip., &c. 4,488,506 4,656,806 yCommon stock25,000,000 25,000,000
452,160
3,124,006 4,019,842 Accounts payable_ 332,500
Cash
12,071,965 12,762,954 Wages and comGov't securities
261,174
261,988
missions pay_
& accounts
Notes
653,141
2,713,471 3,527,257 Prov.for Inc. taxes 225,429
receivable
8,265,755 8,791,043 Repairs to mach'y
Inventories
176,075
54,864
under guaranty..
sCompany's stock 3,372,212 3,372,212
952,209 Deferred credits__ 1,849,301 1,837,376
Deferred charges.- 996,064
Reserve for con2,215,138 2,200,101
tingencies
5,092,759 7,502,293
Surplus
35,031,979 38,082,322
Total
35,031,979 38,082,322
Total
x After deducting $8,335,292 reserve for depreciation In 1932 and 58,073,700 in 1931. y Represented by 5,000,000 shares of no par common stock.
z Company stock (133,300 shares) held for corporate purposes at cost.
V. 135, p. 3170.
-Bond Deposits.
California Cotton Mills Co.
Holders of approximately 50% of the first mortgage bonds of company
have deposited their holdings with the American Trust Co., San Francisco
under the plan for waiving of sinking* fund payments for three years.
V. 134. p. 1029.
Canada Vitrified Products, Ltd.-Sale.
The tender submitted for the St. Thomas, Ont., plant of the above
company was accepted by the Canada Trust Co., trustees for the bondholders under the trust mortgage deed, according to reports on March 1
last. Acceptance is conditional on the offer being ratified by the bondholders at a meeting to be called within 21 days. The offer was for $71,000.
The City Council at a recent meeting approved of a by-law that is to be
submitted to the ratepayers within 30 clays for the guaranteeing of bonds
of the new company to the extent of $45,000. Officers of the new company
announced that if the by-law is passed, manufacturing operations will be
resumed at the plant within two or three months.
The original company was forced to assign early last year. (Toronto
.-V. 134, p. 4497.
Globe")
"
-Regular Dividend.
Canadian Celanese Co., Ltd.
The directors on March 6 declared the regular quarterly dividend of
on the 7% cum. partic. pref. stock. par $100, payable March 31 to
holders of record March 18. Three moths ago, a distribution of 1% on
account of accumulations was made in addition to the usual quarterly
payment of 1 %.-v. 135, p. 4037.
-New Director.
(Philip) Carey Mfg. Co.
George A. Rentschler of Hamilton, Ohio, has been elected a director.
The board has been reduced to seven from nine. N. II. Crabbs, J. P.
Stagg and Frank W. Cottle resigned. Other directors were re-elected.
-V. 135, p. 1997.
Celanese Corp. of America.-Regular Dividend.
The directors on March 6 declared a quarterly dividend of $1.75 per
1
share on the 7% cum. series prior pref. stock, par $100. payable April a
paid
to holders of record March 18. Three months ago the company
dividend of like amount in addition to a payment of 50 cents per
quarterly
-V. 135, p. 4038.
share on account of accruals.
--Extension.
Champion Acceptance Corp.
A total of 78% of outstanding 6% bonds guaranteed by Champion Shoe
Machinery Corp. have assented to the pending plan of extending the currant
-V.134,
maturities one year. There are about $934,000 bonds outstanding.
P. 1029.
-February Output Higher.
Chevrolet Motor Co.
Total production of Chevrolet cars and trucks in February were 45,077
built in the same month of 1932.
units, again of 7.3% over the 42.008 units
February production brought the total number of new 1933 models,
Shown publicly fort _e first time on Dec. 17, manufactured to date to 150,000
March 11 1933
new cars and trucks. Since the first of this year to the close of February,
15,200 more units had been built than in the first two months of 1932.
Of February's total production, domestic dealers, took 39,200 models for
delivery to consumers, against 36.000 in the same month of 1932.-V.
136, p. 1205.
------Chicago Gulf Corp.
-Dividend Omission.
The directors recently decided to omit the quarterly dividend usually
payable about Jan. 1 on the class A stock.
From Jan. 1 1932 to and incl. Oct. I 1932. quarterly distributions of
123 cents per share were made on this issue.-V. 131. p.680.
Chrysler Corp.
-Continues Operations.
The corporation issued the following statement as to its operating policy
during the present emergency: "Chrysler Corp. proposes to continue to
operate on the basis of business that can be done in the light of the general
situation. It is our intention to continue operations so that a balanced
supply of cars In all divisions will be available at all times. Meanwhile,
every effort will be made to co-operate with dealers in handling shipments
already made or in transit and in obtaining all the business that can be
made."-V. 136, p. 1551, 15.12.
Coca-Cola Co.(& Subs.).
-'Earnings..
Calendar Years1932.
1929.
1931.
1930.
Not
Gross sales
540,255.513 541,284,510 $39.260,813
a Cost of operations_
stated
23,118.588 24.327,297 22,564,331
Net operating profit _ -$12,950,658 $17,136,925 316,857,213 $16,696,482
Other deductions (net)....
487,984
2.203.205
1,074,209
1,665.679
Federal taxes
1,735,000
1,750,000
2,039,093
1,776,000
Net Income
Class A divs. (net)
Common dividends
Rate
310,712,673 314,023,622 $13,515,535 $12,758,276
2,036,190
2,199.165
2,364.102
2.507,264
7,750,000
8,000.000
6,000,000
4,000,000
($7.75)
(58)
($4)
($6)
Surplus
$926,483 53,824,457 $5,151,433 56,251.012
Earned surplus Dec. 31_ 25,548,532 24,622,099 20,797,642 615,646,209
Shs. corn. outst.(no par) 1,000.000
1,000,000
1,000,000
1,000,000
$10.25
$11.82
Earns. per sh. on com
$11.15
$8.67
a Includes cost of goods sold, including freight on sales, discount and
allowances, selling, branch, administrative and general expenses. la After
deducting 85,000,000 stock dividend and assigned to class A stock.
Balance Sheet Dec. 31,
1932.
1931.
1932.
$
Liabilities$
Assets$
Cash
6,184,121 4,863,936 z Class A stock.- 5,000,000
Govt.securities_ _ _ 3,853,505 2,782,092 y Common stock._25,000.000
Accts. payable__ 1,268,308
Notes receivable_ 332,774
69,743
1,123,156 1,510,153 Accrued accountsAccts. receivable
2,500,000
10,313,257 8,033,943 Notes payable__
Inventory
Inv.in el. A stk__a16,058,658 15,391,005 Llab. under repur.
2,760,000
Self Insur. fund__ _
agreement
750,000
750,000
Fed, income taxes,
Miscell. Invest. &
445,623
contingencies &
deferred charges 902,260
Sundry notes and
roiscell. operat'g
0,925,472
reserves
accts. receivable 1,036,290
869,983
S Land, bldgs., maProfit and loss surplus
25,548,582
chinery, &c
6,730,608 6,873,489
Formulae, trademark & g'd-w111.24,789,471 24,604,213
1931.
$
5,000,000
25,000,000
1,094,974
50,634
10,362,732
24,622,099
72,072,101 66,130,440
Total
Total
72,072.101 66,130,440
a 323,520 shares, at cost. x After reserve for depreciation of 83,854,482
In 1932 and $3,819,522 in 1931. y Represented by 1,000,000 no par
shares. z Represented by 1,000,000 no par shares (including treasury
-V. 136, P. 1554.
stock).
-Colorado Fuel & Iron Co.
-Earnings.
1932.
Calendar Years
1931.
1930.
Operating incorne____def$1,495,662 def$576.045 53.402.849
Other income
252,918
527,111
339,587
1929:
$5.837,759
541,115
Total income
Interest
Depreciation,&c
Federal taxes
def$1,242,744 def$236.457 $3,929,959 36,378,874
1.628,188
1,611.369
1,626,530
1,624.075
1,387.148
2,130,778
1,970,916
1,473,721
y12.000
269.860
y26,498
36,320
Net profit
Preferred dividends
Common dividends
der$4,253,261def$3363.207
120,000
85,117
5298,649 32,350.048
160,000
160.000
595.817
Deficit
$4,253,261 $3,568,324
$457,168sur$2190.048
Profit & loss surplus_ _ _def2,330,398
6,388,432
1,922,862
5,491,186
Earns. per sh.on 340,505
,.., shs. coin. stk.(no par)
Nil
x$6.43
Nil
x $0.41
Consollidated Balance Sheet Dec. 31.
1931. •
1932.
1931.
1932.
Assets$
Liabilities$
$
$
826,229 Notes & loans pay_
Cash
1,732,213
155,189
104,602
Fine deps. In bks_ _ 900,000
829,004
Accounts payable_ 695,174
Call loan
2.890,000 Accrued payroll__
118 356
18 5 7
42
826..801
Accts. & notes rec.
Accrued taxes_ _ _ _ 710.443
'
ip,(less reserves)._ 2,138,539 2,066,805 Accrued interest_
673,083
671.577
3,682,358 5,830,311 Bondedindebted__32,18300 32,188O
Inventories
183.208
Cont.& oper. res__ 215,035
aPlant, triach.,eq..
reservoir, conPref.stock_ 2.000.000 2,000.000
dulls. AC
d
26,687,447
26,087.447 28,360,050 cComrnon stock__ 8,512,625 8,512,625
bCoal. Iron ore,
Capital surplus_ _ _ 7,039,580 7,700.950
other lands, wat.
Earned surplus.def2,330,399 1,922,862
14,810,250 14,938,143
rights, Ac
Install.contr. notes
and accts. rector
69,195
78,245
sales of property
7,253
10,318
13undry,Isecurlties.
Pats., tr-marks. &
1
1
good-will
168.261
80.614
Deferred charges.49,919,996 55,156.251
Total
Total
49,919,996 55,156,251
x Par $100. Y Taxes of prior years.
a After depreciation of $19.799,8: 0 in 1932 and 819,163,951 In 1931.
-V. 130.
b After depletion. c Represented by 340,505 no par shares.
p. 1380.
Columbia River Paper Mills.-Bond Extension.
More than 80% of the 1st mtge. 6% bonds have been deposited with the
company for maturity extension, according to a report of A. S. Fleming,
-anVice-President The plan was declared effective Jan. 27, the report
nounces.
There were 3800.000 of the bonds outstanding.
-V. 124, p. 2124.
Consolidated Rock Products Co.
-Pays Interest.
A letter to the first mortgage bondholders of Consumers Rock & Gravel
Co., Inc., a constituent of the Consolidated Rock Products Co., states
that delinquent taxes were paid on Jan. 23. Interest payments on the
bonds, omitted on Jan. 3, also have been made.
Despite these payments, a letter from the bondholders' protective committee states that "the committee will be held intact to look after the
Interests of bondholders."
-V. 136, p. 1022.
-Div. Omission.
Continental Casualty Co., Chicago.
The directors at their meeting on March 1 took no action on the declaration of a dividend on the capital stock, par $10. A quarterly distribution
-V.136. p. 1555.
of40 cents per share was made on April 11932; none since.
-Paying Agents, &c.
Continental Securities Corp.
J. Henry-Schroder Banking Corp. and Lee HiggInson Corp. have been
appointed paying agents for the 5% debentures, due 1943.
Corp.,
The J. Henry Schroder Trust Co., New York and LOO. iligglnson
-been appointed transfer agents for the preferred and common
Boston, have
-V.136, p. 664.
stocks.
Financial Chronicle
Volume 136
-Earnings.Container Corp. of America(& Subs.).
1932.
Calendar YearsNet profitfrom sales after
deduct. cost of sales,
incl. raw materials,
labor & overhead sell.
& admin. expenses_ _ _ loss368,976
Provision for deprec_ _ _ _
794,406
1931.
1930.
1929.
$573.575 $1,257,406
161,918
152,195
Total income
loss$844,47710588327,549
Interest charges
535.886
580,887
Prov. for Fed. Inc. taxes
$725.770 $1.419.324
588,172
623.173
85.540
14,766
$908,436 prof$87,831prof$745,612
52,740
50,978
30.634
51.461
Deficit
$1,410,924 $1,012,154 sur$57,197 sur$694,151
Previous earned surplus_
818.356
1,205,931
36.128
722.941
Discount on bonds &
deb& Purchased
80,267
47,970
148,295
345,344
Disc, on pref. stk. purch.
6,820
Excess prov. for real est.
taxes
36,781
De26,822
0..4.441
Miscell. adjustments_
De.2.086
Total earned surplus_ _def$1,189,720
Divs. paid or accrued:
Container Corp. of
Am.7% pref. stock.
Class A common stock
Class B common stock
Cuba Co.-Earnings.
For income statement for three and six months ended Dec. 31 see "Earn-V. 136, p. 163.
ings Department" on a preceding page.
-To Form Protective Committee.,
Deep Rock Oil Corp.
$483.809 81,400.022 $2.005,990
748.584
819,979
826.447
Net profit
loss$863,383loss$336.170
Miscellaneous income__ _
8,621
18.905
Net loss
$1,380,362
Losses on disposition of
capital assets
30,562
Special reorgantz. exps_
1723
$36,129 $1.309,012 $1,597,215
132,365
453.706
139.165
161.505
87.613
protective committee whicn will include representatives of independent
banking interests will, with the co-operati on of 11. M. Byllesby & Co.,
Janney & Co. and Central Republic Co., be formed immediately for the
-V. 136. p. 1556.
protection of tile noteholders of Deep Rock Oil Corp.
-Court Approves Sale.
De Forest Radio Co.
Judge Guy L. Fake in the Federal District Court at Newark, N. J., on
March 6 ordered that the bid of $50 0,000 by the Radio Corp. of America
for the assets of De Forest Radio Co. of Passaic, N. J., be accepted. A
group of stockholders protested the action, but Leslie S. Gorden and Ralph
E. Lum, receivers for the company since June 1. testified the Radio Corp.
bid was the best obtainable.
William Harris, counsel for the stockholders, declared they were not
notified of the proposed sale until the "last minute' and that the "Radio
Corp. offer was only 25% of the company's worth, in,luding many patent
-V. 136, p. 1556.
rights." (.New York "Herald Tribune.")
-Bond Interest Not Paid.
Denver Orpheum Co.
Interest due March 1 on the company's bonds was not deposited for
amounting to tic
newo
am
The
r
ustees a6Toouwn;ede u obno
payment March
issued
the
and paying
Denver, which is leased to the Theater Operating Co. by the Denver II':
pheum Co.
-V. 133. p. 2441.
Deposited Insurance Shares.
-23'% Stock Dividend.
A 2 % sock dividend has been declared on the Deposited Insurance
Shares. series A, payable May 1 to holders of record March 15. A like
amount was paid on May 2 and on Nov.l. 1932.-V. 135, p. 1998.
Dome Mines, Ltd.-Value of Production.-
Feb. 1933. Jan, 1933. Feb. 1932.
Month of$722.941 $1,205.931
$36,129
$381,365
BaLearn.surp.Dec.31d1$1,189.720
$364,879
Output (value of)
$319,057
Shares class A common
-V. 136, p. 1023.
278,914
396.428
stk. outstdg. (par $20)
373.555
373,555
Nil
Earnings per share
Nil
Nil
2 32
$ . ...%•% Domestic Finance Corp.-Receivership Sought.G. Lynn Marriott, Vernon, N. Y., as a stockholder has filed a bill in
Comparative Balance Sheet Dec. 31.
Chancery Court at Wilmington, Del., asking for appointment of receivers
1931.
1932.
1931.
1932.
for the corporation "to protect interests of stockholders and creditors."
$
AssetsI LiabilUies- $
$
xLand, bldgs. dr
7% pref.stock.- _ 1,832,200 2,0:15,900
Dominion Stores, Ltd.-February Sales.
18,036,288 19,175,420 Class A common__ 7,471,100 7.471,100
equipment
1933-8 Wks.
-1932.
'Period Ended Feb. 25- 1933-4 Wks.-1932.
Cash
1,027,685
876,050 zelass B common. 2.890,945 2,890,945
8,666,000 8,949,125
$1,501,637 $1,857,573 $2.899.904 83,607,504
Accts. & notes rec. 771,575
Sales
932,857 i Funded debt
300,907 -V.136. p.1556.
1,257,033 1,832,466 Accounts payable. 340,754
Inventories
391,994
93,750
33,750 Accruals. &c...... 279,899
y Treasury stock_
-Earnings.
Electric Auto-Lite Co.(8c Subs.).
715,645, Current maturities
Deferred charges._ 591,908
20,500
14,000
1930.
61929.
of funded debt._
1932.
1931.
Tax ancient warrs_
33,397
Calendar Years1 1 Resive for cording.
101,622
86,123
.
1
Good-will
81,924.773 $4,892,028 $7,058,085 417025.349
Gross income
40,475
92,844 Canna! surplus... 1,460,811 1,460,811
1,233,181
1,107,595
Other assets
541,956
954.760
Depreciation
33,129
Earned surplus.defl.189,720
19,188
93,385
18,758
15,586
Interest
118.805
Non-recurring expenses21,852,112 23,659,033
21,852,112 23,659.033 I Total
Total
643,507
1,310,000
-See cProv. for Fed. inc. tax
7.849
Prov.for Can.Inc. tax
depreciation of $1.949.959 in 1932 and $1,205.822 in 1931.
x After
y Represented by 5,625 (2.625 in 1931) class A shares and 4.650 class B
$1.364,059 $3,913.833 85.043.402 814,514.370
Net income
-V. 135, p.3003
shares. z Represented by 572.402 shares of no par value.
293.613
294,000
292,716
293,839
Preferred dividends_ _ _ _
-Earnings.
5.578,746 5,399,765
Continental Can Co., Inc.(& Subs.).
1,693,417 4,474,837
Common dividends
1929.
Calendar Years1930.
1932.
1931.
8853.720
8828,957surS8820,605
Deficit
3623,197
Net earnings
b$7.988,024 $8.839,454 $12.023,531 811.902,273
Snares of capital stock
Depreciation
2,318.755 2.185,437 1,826,770
2,343.701
d892,593
d926.229
d897.509
1,107,801
929.834
outstanding (par 85)
1.100,000
Res.for taxes & conting825.000
850.000
$5.32
415.35
$4.03
$1.21
Earns. per sh.on cap.stk
Net income
$4,819,323 35,670,699 88,738.094 $8,967.703
dividends of $4,000,000. Excluding
a Includes special non-recurring
311,912
Pref. dividends (7%)
11.934
non-recurring dividends above, earnings are equal to $11.08 per snare.
Common dividends
3,899,540 4.331,592 4,321.988 3,965.687
b Includes results from operations for 9 montns ended Sept. 30 1929 of
John B. Brown Mfg. Co. acquired Oct. 1 1929. c No provision was
Surplus
8919,783 81,339.107 $4,404,172 $4,690,104
required for Federal income tax by reason of deductions not affecting the
Prof. earned surplus_ _ _ _ 17,096,959 16,157.852 12,828,904 8,563,440
above statement. d No par shares.
Adjust, of dive., bonus &
-Earned surplus Dec. 31 1932,
Earned Surplus Account Dec. 31 1932.
int. on cancell. of sub$10.283,226: profit for year 1932, $1.364,059: total, 811.647,285: deduct:
scrip, under stk. subdividends paid (net). $1.987,256; loss on sale of marketable securities
scrip. plans & diva on
tin addition to provision made in respect thereof in prior years) and adcos. stock held
194,647
ditional provision for decrease in value of remaining marketable securities,
$1.150,744; adjustment of investment in shares of common stock of ElectricTotal surplus
$18,211,388 $17,496,959 $17,233.076 813,253,544
Auto-Lite Co.. $650.997: provision for revaluation of certain properties,
Non-recurring charges_
220,849
51,807
$2,758,027; provision for loss on cash on deposit in closed banks, $100,000;
Res. to write-down book
surplus Dec. 31 1932. $5,000,261.
val. of rntges.,sec. &c. 1,500,000
350.000
Consolidated Balance Sheet Dec. 31.
Approp.for unemploym't
x1932.
1931.
1931.
11932.
relief
50,000
Assets
Prem, paid in redemption
Preferred stock... 4.197.700 4.197.700
b Land, buildings,
of preferred stock..
203,790
, 1,023,417
equipment, &c_ 8,237.684 11,303,558 Common- stock _ _e4,649.170 *5,712,410
1,652.296 1,898,290 Bank loans of subs. 125.000
Investments
Earned surplus
816,711,388 817,096.959 816.157,852 812,828.904
Sure. arising our of
Cash and marketShares corn, stock out851.418
able securities
917.873 1,993,612 acquis.of sub.cos 860.904
standing (820 par)--- 1,733,345 a1,732,985 a1,732.545 a1,725,045
665,303
2,165,342 Accounts payable_ 557,992
Accts. & notes rec. 1,742,204
Earned per share
$5.04
85.02
$2.78
$3.27
30.000
462,425
1,954,132 2,509,671 Notes pay.of subs_
Inventories
a Shares of no par value. b Includes divs, and int. received or accrued
86.660
Accrued taxes....
75,861
Inv. In own comof $510,369 and is after deducting int, paid or accrued of $146,217.
241.956
901,916 2,443,605 Accrued accounts. 186.185
mon stock
Capital Surplus Account Dec. 311932.
42,858
1 Fed. tax reserve__
32.229
1
Pats.. gid-will, &c_
5.000,261 10,283,226
222,084 Surplus
Amount arising from change in capital stock from no par value
Deferred charges.... 319,997
to $20 per share par value
$28,583,003
15,726,103 22.533,159
Transfer to reserve for deprec.on account low present-day values 6,000,000
15,726.103 22,533,159 Total
Total
Amount approp. to write-down to par value, stock taken back
x After giving effect as of Dec. 31 1932 to the change of common stock
under stock subscription plans, less amount received in excess
of no par value to the par value of $5 approved by stockholders Feb. 11
of par for stock sold
999,626
1933. a Represented by 929,834 no par shares (incl. 32.325 shares in
Amount approp. to reduce by $10 per share, the subscription
treasury). b After reserve for depreciation of 85,661,774 ($5,322.770 in
price ofstock sold under stock subscription plans
560.210
1931) and reserve for valuation of certain properties in 1932 of 82,758,026.
c Snares of $5 par value.
-V. 136. P. 1381.
Balance
$21,023,167
-New
Electric Railway Equipment Securities Corp.
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
President.
LiabilitiesAssets$
$
$
$
Walter J. Cummings of Chicago. Ill., has been elected President to succeed
Capital stock_ -.d34,666,9001,63,239,103
aReal est., bldgs..
macciniy, &C.-39.926,669 47,202,170 Pur, money mtge.
20.420
20,960 William H. Woodin, the new Secretary of the Treasury. CommIttee.-V
Mr. Cummings also will be Chairman of the Executive
Investments
1.949,410 1,997,294 Accits payable_ _ _ _ 599,232
556,829
132. p.3156.
9.601.027 12,596,258 Accrued wages,
Inventories
408,894
410,442
Awls & bills rec._ 8,185,032 10,588,493 taxes, &c
-Receivership.
European Mortgage & Investment Corp.
894.303
13,177,989 9,225.595 Reserve for taxes. 836,610
Cash
United States District Judge Alfred C. Coxe has appointed Kenneth M.
121,854
543,169
129,292 Other reserves_
Acer. int. & dbict_ 172,260
equity for the corporation. Coupons of' the comSpence as receiver in
Earned sur plus_ 16,711,388 17,096,959
Employees'subscr.
pany's series B and C bonds, which are secured by first mortgages on
316.872
49,389 Capital surplus_ _21,023.167
to stock
Hungarian farm and urban property, have been in default because the
Daps. with mutual
Hungarian obligors under the Ilungarian transfer moratorium have been
189,637
lnsur. cos
prohibited by the terms of the moratorium decree from remitting the reeCo.'s own stock._ 587.960 c547.625
quired dollar payments to meet the service on these issues. Reports
425,650
prepaid insur.. ao. 281.412
Indicate, however, that the required interest and sinking fund moneys
for the service of the series B and series C bonds have been deposited in
74,388,467 82,761,765
74,368,467 82,761,765 Total
Total
pengoe with the National Bank of' Hungary as security for eventual dollar .
a After reserve for depreciation of $21.379.868 in 1932 and 813.598,856
payments.
In 1931. b Represented by 1,732,985 shares of no par value. c 29,938,
The appointment of the receiver was made on the motion of a bondholder,
$20 par shares in 1932 and 9,686 no par shares in 1931. d $20 par value.
Edmond H. Denninger of New Jersey, and was consented to by attorney*
-V.135, p. 4389, 4221, 3696. 3003.
for the corporation. A similar action is pending against the corporation
In New Jersey.
"..Conway Co.(N. J.).-Decreases Capital.
According to the papers filed in the Federal court, the assets of the
The certificate of incorporation of this company has been amended, corporation include *265.000 in cash in New York banks, and bonds of
authorized capital stock from $159.600. consisting of 1.041
reducing the
Austrian and Hungarian corporations said to have a face value of $11.shares of pref. stock, par $100 each and 555 shares of com. stock. $100
921.930 which are being held in the Boston office of the corporation.
each. to $55,500, to consist of 555 shares of com. stock, par 8100 each.
Chief among the liabilities are three outstanding bond issues, totaling
The reduction of capital has been effected by the retirement and can315,885,000, secured largely by the Austrian and Hungarian bonds.
cellation of 1,041 shares of pref. stock heretofore acquired by and now
V. 135, p. 3172.
corporation.
belonging to the
-V. 131, p. 1902.
-Tenders.
Carle C. Conway Is President.
Everlastik, Inc.
The First National Bank of Boston, corporate trustee, 17 Court St.,
-To Decrease Capitalization.
Coty, Inc.
Boston, Mass., will until noon March 13 receive bids for the sale to it of
17 on approving a proposal to change
The stockholders will vote April
1st mtge. 15-year 7% sinking fund gold bonds, dated Nov. 1 1922. to an
the authorized capital stock from 2,500.000 shares of no par value to 800.000
amount sufficient to exhaust $60,108 (now held in the sinking fund) at
shares, par value $5 each, each three present shares to be exchangeable
-V. 124. p. 1517.
not exceeding the redemption price and interest.
-V. 135, p. 3529.
for one new share.
1724
Financial Chronicle
Exchange Buffet Corp.
-February Sales.
Sales for Month and 10 Months Ended Feb. 28.
1933
-Month-1932,
Decreased 1933-10 Mos.-1932.
Decrease.
$270,463
$371,874
$101,4111$3,326.029 $4,085,835
$759,806
-V. 136, p. 1556.
Federal Mining & Smelting Co.
-Annual Report.
-
Calendar Years1932.
1929.
1930.
1931.
Value of production_ --- $1,085,844 $3,007,304 $6,753,450 $10,300,978
Cost, royalty, &c
5,623.088 7,618,172
1,510,133 3,039,611
Balance
Other Income
def$424,289 def$32,307 $1,130,361 $2,682,806
50,821
185,954
59,057
44,935
Total income
def$379,354
Gen. exp., incl. tax, &c_
80,537
Depreciation
62.824
$18,514 $1,189,418 $2,868,761
237,795 . 348,074
154,020
318,930
289,476
205,180
Netearnings
der3522,715 def$340,687
Profit on stk.purchased_
5
103,335
Profit on sale of U. S.
Treasury notes
9,769
Increase in book value of
property
Dr1,727.543 Dr835,384
Net profit on sale of mining rroperty
Previous surplus
5,865,832 7.13 :691
-6
Totalsurplus
Preferred dividends_
$662,147 $2,201,757
5.697
10.763
587,914
7,871
7.000,312
9,498
4,580,419
General Air Conditioning Co., Inc.-Opens Offices in
New York.
-
$3,718,909 $5,970,394 $7,376,579 $7.390.351
390.038
239,888
104.562
Of interest to the air conditioning and heating and ventilating industry
is the announcement of the formation of the General Air Conditioning
of New York. Among the executives of the new organization are men
Co.,Inc
who have been long and prominently identified with major achievements
in the air conditioning and heating and ventilating fields.
M. Hitchen, Pres. and A. H. Clogston, Vice-Pres. of the company, were
both former executives of the Cooling & Air Conditioning Corp., resigning
their positions to assume active directions of the new company. David H.
Knowles is Secretary of the new organization. Company will maintain
its main office at 155 East 44th St. New York City.
It is stated that the company will
complete engineering service in the
design and installation of all classes of industrial air conditioning, air cooling
and drying systems, as well as for the correct application of apparatus to
such systems.
1932.
$
1931.
1932.
1931.
$
Liabilities
--
Fixed assets
11,094,462 12,858,856 Preferred stock- 2,857.400 2,987,400
Cash
73.232 Common stock- 4,932,800 4,932,800
62.200
U.S. Govt. Recur_
100,000
100.000 Audited vouchers
Other bonds
55.914
and payrolls--__
44.620
448,958
Accts.receivable
60,072
12,616
104,554 Misc.susp.accts-13,833
Contr. & mtg. reo.
54,300 Branch office items
54.300
Ref, zinc, on hand 204,062
1,902
in transit
219,625
Ore on hand and in
424,806
Reserve for taxes- 406,312
195,118 Surplus
transit
202,419
3,718,909 5,865,832
178,084
Materis & supplies 139,097
55,873
Prepaid expenses_
49,757
172
Ofnce items in tran
Total
Fox Film Corp.
-New Directors.
-
Five new directors were elected on March 8, viz.: Sidney Towell.
Comptroller of the company; William Radio, Assistant Comptroller; Felix
Jenkins of the legal department; Richard A. Rowland, a member of the
executive committee, and Daniel Hastings, receiver for General Theatres
Equipment Co.
Directors who retired on March 7 are: Winthrop W. Aldrich, President
of the Chase National Bank; Cornelius Vanderbilt, Mathew 0. Brush and
0. E. Richardson. Mr. Richardson was also Vice-President and Treasurer
and asked to be relieved of his executive position with the company.
v. 136, P. 666.
Dr299,448
Profit & loss surplus $3,718,909 $5,865,832 $7,136,691 $7,000,313
Shs. of corn. outstanding
(par $100)
49,328
49,328
50.328
49.328
Earnings per share
Nil
$8.39
Nil
$36.00
Quarterly Statement.
-For income statement for three months ended
Jan. 31 see "Earnings Department" on a preceding page.
Balance Sheet Dec. 31.
Assets-
11,972,658 14,282,488
Total
11,972.658 14,282,488
-V.135, p. 4390.
(Frank) Fehr Brewing Co.
-Listed on Chicago Curb.
-
Miscellaneous income__ _
Fidelity Fund. Inc.
-Cash Holdings Higher.
Cash holdings of Fidelity Fund. Inc. were increased from 2.5% on Jan.31
to 24.9% on Feb. 28 in order to place the management in a position to take
advantage of any favorable opportunities that may be presented, according
to the monthly report to stockholders by Anderson & Cromwell. managers.
Holdings of bonds on Feb. 28 comprised 32.55 of the fund compared with
7
40.2% on Jan. 31, and common stocks, 42.65 against 57.3% at the close
of the preceding month.
-V.136. p. 1023.
Firemans Fund Indemnity Co.-Bal.Sheet Dec.31 1932.
*sea--
Government bonds
$1,130,338
State, county & mun. bonds._ 499.861
2,221,813
Miscellaneous bonds
426,095
Stocks
Cash
255.086
Prem, in course of collection-- 544,329
Accrued interest
52,284
Total
$5,129.806
Liabilities
Losses in process of adjust-Reserve for unearned prem.-.
Est. amt. of accr. taxes & exp.
Contingency reserve
Cash capital
Surplus over capital and
all liabilities
Total
$703.978
1,138,207
192.447
114,625
1,000,000
1,980,550
$5,129,806
-V. 135, p. 2837.
Firemans Fund Insurance Co.-Bal. Sheet Dec. 31 1932.
Assets
Government bonds
State and municipal bonds
Miscellaneous bonds
Bank and railroad stocks
Miscellaneous stocks
Real estate
Loan on mortgages
Loans on collateral
Cash
Prem. in course of collection
Accrued interest
All other assets
$2,675.403
.4,109.301
6,349,779
1,329.971
9,443.815
1,456,614
3,320,346
1.044:125
2,347,138
233,705
129,172
Liabilities
Losses in process of adjustment
Reserve for unearned premiums
All other claims and demands
Contingency reserve
Cash
Surplus
$2,616,273
11,882,337
709,186
2,282,310
7,500,000
7,539.525
General Bronze Corp. (8z Subs.).
-Earnings.
-
Calendar Years1930.
1931.
1932.
1929.
Gross earnings on completed contracts
$3,181,892 $5,456,971 $6,617,397 $8.811.149
Cost of completed contracts (incl. labor, material & mfg. overh'd) 2,669,520 5,060,774 6,389,989 6,775,911
Administrative & commercial expenses
373,560
686,349
952,455
761,726
Allowance for bad debts
13,800
113,052
26,019
11,855
Deprec. of plants, machinery & equipment_
128.807
53,929
94,310
123,316
Operating income_ _ -$71,083 loss$532,012 loss$874,382 $1,167,348
Interest & dividends rec_
38,489
38,748
79,379
35,584
Excess
of principal amt.
over cost of deb. bds.
retired during year__ _
The Chicago Curb Exchange has admitted to listing 500,000 snares of $1
par, participating preference stock to be admitted to trading on notice, on a
when, as and if issued basis.
Total income
Interest on deb. bonds..,
Other interest paid
Allowance for reduction
in value ofInvestments
Allowance for exchange
fluctuations, Canadian
$32,529,611
$32,529,611
Total
-V.135, p. 3837.
First Chrold Corp.
-Earnings.-
.
138,330
32,436
296,623
17,213
36.341
51,429
$280,338 10583179,429 loss$802,457 $1,298,156
133,009
156,581
107,000
2,614
26,440
13,965
25,548
115,850
net current assets_ __ _
Cr.7,000
23,000
Miscellaneous deductions
3.331
71,143
18.252
31.585
Provision for Federal &
Canadian income tax_
2,710
125,000
Net income
$148,384 loss$559.968 loss$969,299 $1,128,454
Common dividends
350.829
496,406
Balance, surplus
$148.384 def$559,968def$1320.128
$632,058
Slut. common stock outstanding (par $5)---..
273,880
x274,680
x281,284
x281,284
Earnings per share
$0.54
Nil
Nil
$4.01
x No par value: stated value $10.
Consolidated Balance Sheet Dec. 31.
Assets1932.
1931.
Liabilities1931.
1932.
Cash
81,752,064 $1,622,217 Accounts payable- $47,325 $112,948
U. S. Treas. Ws..
31,500
Accr'd sal., wages,
Accts.& notes rec. 723,358 1,029.153
commission, &c.
109,724
99,950
Inventories
878,221
872.393 Sub-contract Habil, 275,356
304.343
Insur. deposits and
Bond int. accrued_
23,140
20,930
advance paym'ts
21.299
32,696 Mortgages payable
417
1,417
Investments
201,624
211,250 Pray. for exchange
x Land,bidgs.,mach.,
fluctuations....
23.000
16,000
and equipment_ 1,397,152 2,429,721 10
-year cony. deb_ 2,093.000 2,314,000
Patents, patterns,
7% 1st M.ser.bds.
41,600
31,100
dies and supplies 597,824
582.366 Capital stock
y1,369,400 z2,746,800
Miceli def. chgs_
13,989
37,147 Paid-in & cap.sur_ 2,459,787 2,088,599
Good-will
1
1 Earned deficit__
947,616
799,231
Total
Total
March 11 1933
New York Supreme Court by the Equitable Life Assurance Society of the
United States. The Society contends that a balance•of $1,750,000 due on
the principal has not been paid, and that interest due Dec. 1 1931, and
June 1 1932 also has not been paid.
The original mortgage of $2,500,000 was given by the Fifth Avenue
Building Co. on Dec. 30 1901, and title passed to the Flatiron Building
Corp., principal defendant in the action. The mortgage was extended on
May 24 1929. Other defendants in the action include the United States
Realty & Improvement Co. and the Bank of United States.
Foltis-Fischer, Inc.-Sale.
Federal Judge Bondy has signed an order for the sale on April 7 to the
assets of the company for a bid of not less than $315,000.-V. 134. p. 4668.
$5,615,032 $6,816,944
Total
$5,615,032 $6,816,944
x After depreciation of $251,655 in 1932 and
In 1931. y Par
value $5. z No par value shares; stated value $398,495 share.
-V. 135
$10 per
p.2180.
Apr. 22 '30 '....General Cable Corp.-May Issue Bonds.
Years Ended
The stockholders at the annual meeting to be held on March 15 will
Periodvote upon, if presented, a proposal to authorize the board of directors to
Dec. 31 '32. Dec. 31 '31. Dec.31 '30.
Gross income
$92.972 def$60.177
create additional bonds or other funded indebtedness, from time to time.
$117,777
91.176 def61,381
Net income before Federal taxes
in a total amount not to exceed 810.000.000 in such form and with such
113.781
88.250 def61.381
Net income after taxes
terms and provisions as the board may determine, to secure the same by
100.127
liens on the company's properties or otherwise, and to issue and sell the
Summary of Surplus Account Dec. 31 1932.
same at such prices as the board may determine, or to pledge the same, in
Undivided profits Jan. 1 1932
$15,878
such amounts as the board may determine, for any indebtedness hereafter
Adjustment in tax reserve for prior years
178
created or a guaranty thereof, and to make such gales or pledges te or
through any person, firm or corporation Including the American Smelting
Balance
$15,700
& Refining Co., which Is the largest stockholder in the General Cables
Net income (as above)
88.250
Corp., and has eight of its directors on the latter's board, Fuller Rodney
& Co. which has one director, Dillon, Read & Co. and C. D. Barney &
Total surplus
5103.950
both of which have one partner on the General Cable board.
Dividends paid
24,716
Co..
Afurther resolution will amend the by-laws so that the board can remove
all officers by resolution at any time, with or without cause. At present
Undivided profits Dec. 31
579.233
the powers conferred upon the directors applies to all appointive officers.
Surplus for sale of treasury stock
3,624
The General Cable Corp. at present has outstanding $13,364,500 series
A 534% 1st mtge. bonds due July 11947. and $602,000 series B 554%
Total undivided surplus
$82.858
bonds due July 1950 also secured by same mortgage.
For income statement for Jan. and February 1933 see "Earnings Depart-V. 136. P. 1557.
ment" on a preceding page.
Comparative Balance Sheet.
Feb.213 '33. Dec.31 '32.
Feb.28 '33. Dec.31'32.
Assets$27,529 $462,412 Capital stock
a$393,050 b$387.093
Cash
Undivided profits44.268
Speculative long po79,233
.
3,302 Surpius from sale
59,210
sitIons at market
.
of treas.stock
vest. In U. B.
3.624
Reserve for Federal
Treas. Ctfs. &
income taxes. &o
2.063
accrued lot
2,936
352,633
Invest, long posiAccrued expenses_
21
tions at market_
33,208 Speculative short
Positions at mkt.
26.025
$439,371 $498,923
Total
$439,372 $498.923
Total
a 3,862 no par shares. b3,842 no par shares.
-V. 136, p.10231
Flatiron Building Corp.
-Foreclosure Suit.
suit to foreclose a first mortgage on the Flatiron Building, at the 23rd
Street junction of Broadway and Fifth Avenue, was filed March 1 in the
--- ---...General Capital Corp.-Reduces Capital Stock:
"
The stockholders on March 8 voted to reduce the authorized - stock
capital
from 500,000 to 200,000 no par shares for the purpose of reducing taxes.
Owing to the fact that the Stock Exchanges are closed and it is impossible
to determine the exact liquidating value of the portfolio, it was voted to
defer action on the reduction of the stated capital to permit the payment
of a 81.25 dividend until after the reopening of the New York Stock Exchange.
Net income for the year ended Dec. 31 1932 was equal to $1.33 a share
See also V. 136, p. 667.
General Motors Corp.
-Distribution May Be Delayed.
-
The corporation has virtually completed the preparation of about
350,000 checks for its common dividend of 25 cents per share, which is
payable on March 13, but will not mail them until it is clear that the
stockholders will be able to cash or deposit them. Officers of the company on March 7 said they hoped that the situation would be sufficiently
clarified to permit them to make the distribution when due. There are
approximately 43,500.000 shares of common stock outstanding.
Volume 136
Financial Chronicle
Sales for February Off.-An official statement follows:
February sales of General Motors cars to consumers in the United States
totaled 42,280 as against 50,653 in January and 46,855 in February a year
ago.
February sales of General Motors cars to dealers in the United States
totaled 50,212 as against 72,274 in January and 52,539 in February a
year ago.
February sales of General Motors cars to dealers in the United States
and Canada, together with shipments overseas, totaled 59.614 as against
82,117 in January and 62,850 in February a year ago.
Sales to Consumers in United States.
1933.
1932.
1931.
1930.
January
50,653
47,942
61,566
74,167
February
42,280
46,855
68,976
88,742
March
48,717
101,339
123.781
April
81,573
135,663
142,004
May
63,500
122,717
131,817
June
56,987
103,303
97,318
July
32.849
85,054
80.147
August
37,230
69.876
•86,426
September
34.694
51,740
75,805
October
26.941
49,042
57,757
November
12.780
34,673
41.757
December
19,992
53,588
57.989
Total
510,060
937,537
1,057,710
Sales to Dealers in United States.
1933.
1932.
1931.
1930.
January
72,274
65,382
76,681
94.458
February
50,212
52,539
80.373
110.904
March
48,383
98,943
118.081
Apra
69,029
132.629
132.365
May
60,270
136,778
136.169
June
46,148
100.270
87.595
July
31.096
78,723
70,716
August
24.151
62.667
76,140
September
23.545
47.895
69.901
October
5,810
21,305
22,924
November
2,405
23.716
48,155
December
44,101
68.650
68.252
Total
472,859
928,630
1,035,660
Total Sales to psalm in U. S. and Canada, Plus Overseas Shipments.
1933.
1932.
1931.
1930.
January
82.117
74,710
89.349
106.509
February
59.614
62.850
96,003
126.196
March
59.696
119,195
135.930
April
154,252
78,359
150.661
May
66,739
153,730
147,483
June
52,561
111,668
97.440
July
36,872
87.449
79.976
August
30,419
70.078
85.610
September
30,117
58.122
78.792
October
10.924
25.975
28,253
November
5,781
29,359
57.257
December
53.942
79.529
80,008
Total
562,970
1,074.709
1.174.115
Unit sales of Chevrolet, Pontiac, Oldsmobile, Buick, LaSalle and
passenger and commercial cars are included in the above figures. Cadillac
-V.136,
p. 1558, 1024.
General Printing Ink Corp.
-Postpones Dividend Action.
-The directors on March 7 decided to postpone the
declaration of the quarterly dividend due April 1 on the
$6 cum. pref. stock, no par value, because of the uncertainty
as to the means by which dividends can be disbursed to
stockholders. The last regular quarterly payment of $1.50
per share was made on this issue on Jan. 3 1933.
The corporation issued the following statement:
The board of directors
is in favor of the payment of the current preferred dividend, but is
financial condition and withholding declaration for a clarification of the
the method and medium of payment.
-V. 136,
p. 1382.
General Refractories Co.(& Subs.).
-Earnings.
-
Calendar Years1932.
Net earns.from oper
loss$452,225
Miscellaneous Income_ _ _
140.253
Total income
Bond discount & exp 1064311.972
77.148
Corp. munic. & Inc.tax_
84.264
Int. on bond & float. dt_
269,909
Depreciation & depletion
reserve from earnings_
278.792
Extraordinary items_ _ _ - 1,001.051
Net income
def$2,023.137
Dividends
1931.
1930.
1929.
$749.539 $2,629,174 $2,937,104
166.131
258,054
236.669
$915,670 $2,887,228 $3.173,772
83,049
82.298
334.661
262.682
294,570
101.684
13,335
301,982
314,296
261.581
1725
Court of New York, March 6, against the company's property, on the
ground that it Is a foreign corporation. One action was brought by the
Clinton Trust Co. on $25.000 of the notes, which were not paid when presented at the office of the New York Trust Co. on the due date, while the
other suit is by the Securities Administration, Inc. for $5.125.
The company has proposed a plan for refunding the notes (see V. 136.
'
P.851).-V. 136, p. 1558.
General Steel Castings Corp.
-Earnings.
-
Calendar Yearsx Loss from operation
Provision for depreciation
Net operating loss
Interest, discount, ,Scc
Income from investments
1932.
$256,497
1,259,035
1931.
1930.
5571.066 y$2.247,290'
1,200,675
766.633
$1,515,533 $1,771,741 y$1.480.657
36.021
99,270
312,151
292,071
278.602
239.937
Total loss
$1,187,440 51.393.869 y$2,032.745
Bond in & amort. of disct. & exp..
990,201
1.083.646 1.144.261
Amortization of patents
250.000
250.000
Provision for shrinkage in value of
marketable securities
342,071
278,602
Provision for Federal income tax__ _ _
35.000
Net loss
52.519,713 $3,006,118 y$603,494
Previous surplus
def1,799.276
1,506.842 1.503,347
Total deficit
$4.318,981 $1.499,276sur$2106.342
Dividends on preferred stock
300,000
600.000
Deficit Dec. 31
$4,318,981 $1.799,276sur$1506.842
x After deducting mfg., selling & admin. expense. y Profit.
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
Assetsii
$
Liabilities-$
$
Cash
2,928,266 2,938,018 Accounts Payable44,802
08.247
Marketable securs. 5,417.082 6,714,834 Accrued items--- 691.380
777.151
Accts.receivable_ _ 215,389
633,420 P r o v 1 s I o n for
Inventories
915,670 1,065,584 Federal income
Loans to employees
50,163 tax
45,96g
Miseell. investm't_
41,481
36,873 534% first mortTreasury bonds_ _
.
18,291
gage gold bonds.17,150,000 18,000,800
Treasury stock- _
172,969 46 cumulative prex Land, bldgs.. maferred
6.668,667 6.666.667
chinery & equipy Common
13,645.718713,772,430
ment, &c
24.105,567 25,636,611 Capital surplus-- 5.473,543 5,837.711
Patterns, flasks.
Earn deficit
4,318,988 1,799.275
dies, &c
5,455.684 5,449,015
Patents
1
1
Bond disc.& exps.,
prepaid Maur.,
taxes, organization exps., &c
255,688
702,205
Total
39,353,120 43.399.695 Total
39,353,120 43,399,695
x After depreciation of $4,648,119 in 1932 and $3,593,071
y Represented by 456,576 no par shares in 1932 and 459,081 in 1931in 1931-V. 135, p. 4391.
General Steel Wares, Ltd.(& Subs.).
-Earnings.
-
Calendar Years1932.
1931.
1930.
1929.
Net profit for the year _ _km4167,543 loss$349,407
512.538 51.206,200
Addit'l loss from writedown ofInventory_
200,562
Interest on bonds
571.187
569,936
549,135
554,650
Deprec.& Fed.inc.taxes
315,578
Capital profit on bonds
retired during year.
513,893
Net loss
$536,597 prof$335,972
$224,838 $1,119,905
Divs. paid on pref. stock
78.750
315.000
315.000
Deficit
$224.838 $1.198,655
$851,597 sur$20,972
Previous surplus
def1,096,023
102.631
309.228
288,257
Transferred from prop.,
depreciation and contingency reserves..___
Cr645,000
Profit & loss Burp---def$1,320,861def$1096,024
$102,632
$309,229
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
AssetsLiabilities$
i
$
$
Cash
26,381 Bank loans
23.344
252,235
630.447
Acct..receivable__ 1,082,165 1,428,224 Accounts payable. 282,568
s
160,423
Sundry debtors-30.005
52.568 Accrued Interest
82.780
91.600
Inventories
3,039,676 3,909.400 Reserves
3,524.530 3,524.530
Sink, fund cash__
126.762 Bonds of sub. cos_ 225,000
18
240.000
Investment, &o_..
10.531 Bonds (company) 7.828.000 8.679.000
8,708
Deferred charges-48.484 Preferred stock
31,310
4.500.000 4.500.075
Fixed assets
12,159,159 12.127,762 zCommon stock_- 1.000.135 1,000,060
Deficit
1,320,861 1,096,024
Total
16,374,387 17,730.113 Total
16,374.387 17,730,113
x Represented by 200,000 shares of no par value in 1932 and 199,997 in
1931.
R. W. Steele, of Dominion Securities Corp., has been elected a director
to succeed A. J. Clark, Toronto, who retired from the board during he
year.
-V. 135. p. 3173.
$236.820 $2,136,588 $2.553.124
900,000 1.425,000 1,200,000
Balance. surplus_ - _def$2.023.137 def$663.180
$711.588 $1,353,124
Shares capital stock outstanding (no par).--262.900
300.000
300.000
300.000
Earned per share
Nil
$0.79
57.12
$8.51
Capital Stock and Surplus Accounts Dec. 31
1932.
1931.
1930.
1929. "?General Tire & Rubber Cor-A0gwiailinre--Capital stock
411.350.003412,951,695412.951,695a$12,951.695
he compan
pl as acquired management control of the
?
Paid-in surplus
5,065,920 5,052,058 5.052.058 5.175.509
El 'opo S. A. the only tire manufacturing company Compania Dulera
in Mexico.
Earned surp. bal. Jan. 1 3,693.148 4,361,460 3,649,872
Mexican corn ny which has been in operation for 10 years will retainThe
2.851,240
profit
Net
the
10682.023,137
236.820 2.136.588 2.553.123
same officers with the exception of W. O'Neil. President of General Tire
.
& Rubber Co., who becomes a director. Alfredo Guijarro, who has been
Total
$18.085.934 522,602.033.523,790,213 $23,531.567
Mexican manager of General Tire, was made General Sales Manager and
Dividends
900,000 1,425,000 1,200,000
will act as local director for Mr. O'Neil. Tires in the Mexican plant, which
17namort. bd. disc. exp.
has a capacity of 500 a day, will be manufactured under the name of
& prem. written off
General Popo.-V. 136, p. 667.
554,491
b Depreciation
174,857
103,901
Claim for refund. of Fed.
*"----(The) Georgian, Inc.
-To Retire Treasury Stock.
tax for 1918 of pred.co.
133.519
The stockholders have voted to reduce the capital stock from
Res. for contingencies
1,670,011
64.002 shares of $20 par claw; A stock through the retirement65,177 to
of 1.175
shares now held in the company's treasury,
-V. 136. P. 1208.
Total capital & surplus$16,107.546 $21.598.132 522.365.213
521,777,077
a Capital stock represented by 300,000 no par shares authorized
'Goodyear Tire & Rubber Co. of Canada, Ltd.
and
-Divioutstanding. b Depreciation and depletion of property
values represented
dend on Common Stock Decreased.
by capital surplus. e 262,900 no par shares.
The directors have declared a quarterly dividend of 60 cents per share
Condensed Balance Sheet Dec. 31.
on the common stock, no par value, payable April 3 to holders of record
1932.
1931.
March 15. Previously, the company paid quarterly dividends of $1.25
1932.
1931.
Assets$
per share on this Issue.
i
Liabilities-$
-V. 136, p. 1559.
$
Real est.,b1dgs..003 17.978.877 18.366,450 z Capital & surp--18.107.548
21.598,132
Patents at cost.-31,641
Great Atlantic & Pacific Tea Co.
34,873 Notes payable-- 325,000
-Sales.
250.000
237,603
Cash
440,105 Accounts payable_ 143,969
Sales as estimated by the company
197.661
Notes receivable-. 324,581
322.111 Accrued accounts_ 179,047
the fiscal year Feb. 28 1932 to Feb. 25for periods from the beginning of
1933 compare as follows:
193,237
office &
Due from
2
-year 5% gold
$
$
employees
1,231.767 1,034.986
notes
Five weeks ended April 2 588.912,192 $104,742,250 -Decrease-5,000,000 5,000,000
815.830.058 15.17
Investments
173,883
173,883 Reserve for conFour weeks ended April 30 72.368,664 85,026.365
543,137
Accts. receivable
790,043 tingencies
Four weeks ended May 28 72,432.886 81.053.595 12.657.701 14.9%;
1,750,000
8.620,709 10.6%
Inventories
1.855.391 3,126,361
Five weeks ended July 2 86.062.734 99,342.006
Accrued Interest-.
2,404
13,995
Four weeks ended July 30 64.238.819 77.027.658 13,279.272 13.3
12.788.839
Cash in hands of
Five weeks ended Sept. 3 79.316.702 93.981,527 14.664.825 16.6
21,365
receivers
15.6%
Four weeks ended Oct. 1 63.625.099 74,076.684
14.1f
Misc. Investments 829,580 2,382,353
Four weeks end Oct. 29 66.530.473 76,508.258 10.451.585 13.0
ended
9,977,785
.
Deterred accounts_ 275.334
553,868
Four weeks ended Nov. 26 62.848.653 74,705.685 11.857,032
15.8%
Five weeks ended Dec. 31 79.615,596
91,309.637 11,694.041 12.8%
23,505,563 27,239,030 Total
Total
23.505,563 27.239,030
1933.
1932.
Represented by 262,900 no par shares In 1932 and 300,000 no par shares
Four weeks ended Jan. 28 57,235.494 68.966.450
17.0%
Four weeks ended Feb. 25 61.102.151 69.868.307 11,730,956 12.5%
In 1931.
8,766.156
Suits Filed.
Total
8854,289,463 3996.608,422 8142318,959 14.3%
Because of the failure of the company to pay off the $5,000,000 gold
Tonnage sales as compiled from the company's estimates for Periodt
notes due on March 1, two attachments were obtained in the Supreme
from Feb. 28 1932 to Feb. 25 1933 compare as follows:
1726
Financial Chronicle
Four weeks ended Jan. 28
Four weeks ended Feb. 25
Total
-V. 136, p. 1023.
1931.
552.825
456,704
443,449
553.562
413.726
507,772
408.323
420,398
418,777
516.165
1932.
395.427
412.811
24,033
6,655
6.0%
1.6%
5.278,400
Five weeks ended April 2
Four weeks ended April 30
Four weeks ended May 28
Five weeks ended July 2
Four weeks ended July 30
Five weeks ended Sept. 3
Four weeks ended Oct. 1
Four weeks ended Oct. 29
Four weeks ended Nov. 26
Five weeks ended Dec. 31
1932.
520,198
422,714
437,687
531,088
397,468
490,487
391,804
415.659
395,275
498,470
1933.
371.394
406,156
5,499,939
221,539
4.0%
Decrease
-32.627
5.97
33.990
7.49k0
5.762
1.3%
32,474 4.05'
3.9%
16.258
3.45Y
17.285
16,519 4.05'
4.739
1.1%
23,502
5.6%
17.695 3.4%
(W. T.) Grant Co. (Del.).-February Sales.1933
-February-1932.
64.490.728 $4,836,950
-V. 136. P. 1559. 1025.
Decrease.' 1939-2 Mos.-1932.
$346,222[88,763,607 $9,331,509
Decrease.
$567,902
•
M.) Grier Stores, Inc., N. Y. City.-Receivership.
Federal Judge Alfred 0. Ooze March 7 appointed the Irving Trust Co.
receiver in equity for the company, operator of a chain of apparel shops
with offices at 1441 Broadway, N. Y. City. The appointment was made
on motion of Eisenberg & Sons of Chicago. creditors, for $5.000. Liabilities are listed at $700,000 and assets, which are not liquid, at $2,741.000.
Gross sales for the year ended on Jan. 31 1932 are said to have amounted
to $9,448.024. The corporation was organized in 1922.-V. 135, p. 944.
Gruen Watch Co.-Proposes Capital Restateinent.
A special meeting of common and preferred stockholders has been called
for March 14 to consider a proposal to reduce the stated capital represented
by the company's no par common stock from $25 to $1 a share, and a transfer of the difference to paid-in surplus. By such procedure the stated value
of common will thus be reduced to $112.730 from $2,818,250 as of Dec. 31
last, and the sum of $2,957.741 credited to paid-in surplus. This would
be reduced by 6365.669. the amount of the deficiency account at March 31
1932.
President Fred G. Gruen said: "In accordance with sound accounting
practice, the balance remaining in paid-in surplus will be used to establish
increased reserves for accounts and notes receivable, to absorb write
-downs
in the valuation of inventory and losses in subsidiaries, and the anticipated
operating loss for the current fiscal year.
"In spite of drastic economies in administrative, office and sales expenses, as well as plant operation, the estimated results for the fiscal year
appear to be no better than for the previous one. . . . With plants
and equipment naintained in excellent condition and with all types of
expenses cut drastichlly, the company is in a position to take immediate
advantage of any improvement in business and to secure satisfactory returns from a volume of business only slightly in excess of the present
volume."
-V. 135, p. 139.
Guarantee Title Co.(of Ohio).-Receivership.=
'Receivership for the company, a real estate mortgage firm operating in
northern Ohio, was ordered by Common Pleas Judge H. W. Ewing at
Cleveland, March 3. A. V. Cannon, attorney, was named receiver. it'ult
was brought by Prank W. Clark and was concurred in by company itself.
Suit declared company to be solvent and able to pay creditors in full if
managed and liquidated properly.
Gulf States Steel Co.-Earnings.
Calendar YearsGross income
Operating expenses
Federal taxes
Interest
Amortisation
Depreciation
1932.
1931.
1930.
1929.
$4,919,354 47,811,169 $8,296,053 $11.164,950
4,457,432 7,737.587 8,185,954
8,842.448
183,723
289,168
296,330
282,904
207,990
30,122
21,361
42,528
20.487
780,000
780,000
600.000
600.000
Loss
Profit on debs. retired by
sinking fund
$637.369 $1,024,110
119,054
47,880
Net loss
Preferred dividends_ .. _
Common dividends
$518,315
$976,230
35.000
$815,335 141,310.301
$815.335 P$1.310.301
140,000
140,000
395,000
705.196
Deficit
$518,315 $1,011.230 61.350,335 sur$465,105
197,500
197.500
Shs.com.stk.out.(no par)
197,500
197,500
Nil
Nil
Nil
Earnings per share
$5.93
deducting profit on debentures to comply with New
p Profit. z After
York Stock Exchange forms.
Balance Sheet Dec. 31.
1931.
1932.
1932.
1931.
Liabilities
Assets$
$
yWorks and prop_24,820.925 25.599.023 7% 1st pref.stock_ 2,000,000 2.000.000
432,074 :Common stock_ _16,850,000 16,850.000
377,276
Cash
769,407 514% debentures- 5,187,500 5.375.000
660,620
Accts. receivable
108,186 Notes payable ._.- 600.000 1,242.000
94,120
Notes receivable
2,489,054 2,595,984 Add'! Peril taxes_ 240,000
Inventories
64,283 Accounts payable_ 388,061
67,254
183.907
Investments
43,456 Wages.taxes & int. 162.875
17,096
90,847
Sinking fund
303,204 Res. for replacels
Prepaid ins. it tax_ 290,869
and sundries__ 436,761
435.489
Contingencies ____ 136,593
405.237
Capital surplus__ 1.294,587 1,294,587
Earned surplus__ 1,520,835 2,039,151
Total
28,817,214 29,916.216
28,817,214 29,916,219
Total
x Represented by 197.500 no par shares. y After reserve for depreciation
and extinguishment of $4,592,301 in 1932 and $3,804.500 in 1931.-V.
134.P. 501..
-Defers Div. Action on Corn. Stock.
(Charles) Curd & Co.
March 11 1933
Horn & Hardart Baking Co.-Quaiterly Dividend.
-
The directors have declared the regular quarterly dividend of $1.75 per
share. on the common stock. payable April 1 to holders en record March 21.
The optional dividend of 1-50th of a share of common stock in lieu of cash
has been discontinued with this distribution, a Philadelphia dispatch states.
-V. 135. P. 4566.
Houston Oil Co. of Texas(& Subs.).
-Earnings.
-
Calendar Years1932.
1929.
1).1o.
Gross earnings
$5.412,084 $8,625,582 511,8.35,826 89,553,955
Crude oil and gas purch_
863.953
1,859,762
3,806,055
1,852,256
Decrease in crude oil and
refinery invent's (net)
89,506
321,078
Cr68,641
31,707
Producing & oper. exps_ 1,439,335
1,820,195
1,499,301
1,728,670
Taxes other than Ped'I
income taxes
261,625
275,703
247.393
244.596
Admin. St gen. expenses_
514,564
1,024,550
912,307
1,084,571
Depreciation & depletion 1,634,347
1,626,501
2.066,113
. 2,351.812
Income from oper____
$608.752 $1,697,794 $2,974,461 62,658,878
Other income credits_ _ _
293.209
450,562
155,197
120,104
Gross income
$901,961 $2.148,356 $3,094,565 62,814,076
Income charges (including Federal taxes)
1,803,609
2,504,840
1,439,230
1,082,607
Net income
10636901,64810886356,484 $1,655,337 81.731.469
Profit and loss credit_
41.909
23.692
23,764
Gross surplus for year_def$901,648 def$314,575 $1,679.029 $1.755,233
Divs, on pref. stock _ _ _ _
134,214
536.856
536,856
536,856
Stock divs. on corn.stock
2,496,860
Gas rights expired or forfeited In prior years_
111.325
Prem. on unamort por.
of bond disc. & exps_ _
568,504
Addit. prov. for depict.
for prior years__ _ _
181,176
Prov for excess va'uation
of certain property.. _ 1,600,000
Adjust. or prul. sects_
263,720
Prov. for addl Fed. inc.
taxes (prior years).- 88,577
Deficit
Surplus Jan. 1
82,817,038
7,860,059
$115,151 $1.923,1918u41.018,475
8,975,210 10,898,401
9,879,926
Surplus Dec.
-- 85,043,081 87,860,059 88,975,210 310,898,401
Shs. corn. out.(parS25). 1,098,618
1,098,618
1,098.618
x249.686
31_-Earns.per sh. on corn.stk
$4.89
Nil
Nil
$1.02
x Par $100.
Consolidated Balance Sheet Dec. 31
1932.
1931.
1932.
1931.
AssetsLiabilities
$
$
x Property acct___43,005,304 45,831,647 Preferred stock... 8.947.600 8,947.600
Due from SouthCommon stock_ _ _27.465.450 27.465.460
Funded debt
west'n Settlein't
10,490,000 11,090,000
& Develop. Co_ 5,977.312 5,852.063 Vendors' lien notes
Sinking fund cash_
1.008 for land purch
120,000
7.203
120.000
Oil on hand
417,022
109.320
198.826 Accounts pnyatme_ 494.899
Mat'l and supplies 474.023
569.228 Accr. taxes & lot.. 355,474
409,952
Advances
169.014
252.835 Res. for additional
Notes & accts. rec. 887,075 1,029,120
Federal taxes_ _ _
80.000
80.000
Employees' funds_
5,762
9,650 Surplus
5,043,021 7,860,059
Cash
1,511,881 1,432.800
Deferred charges._ 850.548 1,212,917
Total
Total
52,997,444 56.390.093
54,997,444 56,390,09
3
x After reserve for depreciation and depletion -V. 135, p. 3531.
Howe Sound Co.(& Subs.).
-Earnings.
Calendar Years1932.
1931.
1930.
1929.
Total income
$3,292,368 88.593.678 $13 658.772 816.842,721
Operating exps., &c.... 3.119.163
7,423.714 10,444,569 11,696,158
Taxes
45.338
94.443
294.259
400,294
y204,564
Depreciation & depletion
482.305
889.652
993.793
Net income
loss$76.697
8593.215 $2.030,292 $3,662 476
Dividends
253,405
1,100,030
1,984,152 2,480,190
Surplus
def$330.102 def$506.815
$46,140 81,182.286
Shs.cap.stk.out.($5 par)
473.791
x481.191
x496,038
z496,038
Earnings per share
Nil
$1.24
$4.09
$7 38
x No par shares. y Depreciation only,
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1931.
1932.
AssetsLiabilities$
$
$
bProperty, plant dr
Capital stuck
e3.029.871 a3,077.195
equipment
11,422,059 11,534,236 Reserves
1,263,020 1,091,095
Inventories
347,036
439,790 Payrolls. vouchers,
Accts.receivable
75,355
76,437
&c
105,805
440.371
RR.& other bonds 141,275
Notes pay. (see.)_ 377,433
Accr. market.ohgs.
Fire insurance fund
77,603
Misc, curt. dab__
Investments...
184.718
18,519
Due from smelters
177.042 U. S. and foreign
82,323
taxes
Em pl. stock purch.
64,713
66.473
377,830 Dividends payable
contracts
d474.600
248.019
49,604
403,715 Surplus
Metals on hand... 1,062.794
12,352.123 13.136,712
Govt. bonds. &c__ 2,918,354 4,616,946
414,423
Cash
293,666
138,446
217,513
Deferred charges
17,340,452 18,058,107
Total
Total
17,340,452 18,058,107
a Represented by 481.191 shares of no par value. b After deducting
reserve for depreciation of $4.758,280 in 1932 and $4,450,577 in 1031
c Represented by shares of $5 par value. d 29,000 shares at cost (market
value 8174.000).-V. 136, p. 668.
Hupp Motor Car Corp.
-Earnings.
-
The directors have deferred action on the quarterly dividend ordinarily
payable about April 1 on the no par common stock until the April meeting
of the board. The regular quarterly dividend of $1.75 per share on the pref.
stock has been declared, payable April 1 to holders of record March 15.
A distribution of 15 cents per share was made on the common stock on
Jan. 2 last, compared with 25 cents per share on Oct. 1 1932, 40 cents per
share on April 1 and July 1 and 50 cents per share previously each quarter.
V. 135. p. 4223.
Calendar Years1932.
Hupmobiles sold during
year
$8.750,565
Sales
11.309,077
Cost ofsales
(M. A.) Hanna Co.-Declares Regular Dividend.
The directors at an adjourned meeting held on March 1 declared the
regular quarterly dividend of $1.75 per share on the $7 cum. no par pref.
stock, payable March 20 to holders of record March 11.-V. 136,P• 1383•
Profits & income_ _loss$2,410,882loss$406,433
Reserve for depreciation
802.299
1,324.707
Idle plant expense
440,036
Extraord. charges from
Invest. adjustment-- _
862,263
2,517,987
$236,690 64,495,232
1.026,296
1,159.455
mit
l
e 200.000 shares ocommon stock (no par) have been removed from
mpany having discontinued transfer agent and
th New York Curb
Ity.-V. 135, p. 3531.
registrar in New Y
Net loss
$4.515.482 $4,249,127
Com, div, paid in cash..
Corn. div. paid in stock_
$322.765sur53468.93
6
2.759.549
2.239,332
1,378.942
367.176
-Balance Sheet
Home Fire & Marine Insurance Co.
Dec. 31 1932.-
Deficit
$669,556
$4,515.482 34,249.128 83,529,273
Previous surplus
7,028,741 11,277,869 16,417,434 17,086,990
Capital surplus
2,413,976
2,524,648 2.524.648
Transfer to general contingency reserve
Dr500.000
Special depreciation_
Dr1.605.701
-.Jlobart Mfg. Co.-Siskek-lismeued4r-ons-lrisb-.-
Liabilities
Assets
$468,469 Losses in precise of adjust_ _ _ _ $346,738
Government bonds
248,503 Reserve for unearned premiums 2,248.936
State and municipal bonds
78.586
2.467,194 All other claims and demands_
All other bonds
240,069
1.035,807 Contingency reserve
Stocks
1,000.00i)
$01,189 Cash capital
Mortgage loans
Cash In banks & eo.'s offices__ 423,600 Surplus over Capital and all
1.538,662
Prem. in course of collection- 421,063 liabilities
57,271
Accrued interest
29,895
other assets
All
; Total
. 135, P. 2839.
66,452,990
Total
$5,452,990
Gross profit
Other income
loss$2,558,513
147.630
1931.
Not
available
1930.
1929.
50.579
22,183
$23,445,222 852,505,643
1 23.751.350 49,548,781
I
lots$R06.129 $2,956,861
1.538,370
542,819
Profit & loss surplus__ 82.013.260 $9,442,718 $13,807,107 $18,942,082
1.475.374
Shs.com.stk.out (par$10) 1,329.128
.
1,331,929
1,512.091
Earn. per share on cool_ _
$2.35
Nil
Nil
Nil
Price, Waterhouse & Co. state:
During the year there was added to the reserve for contingencies $607,636.
Extraordinary charges in the amount of 64,440.725 wore made, of which
32.435.004 was charged to capital surplus eliminating the balance thereof
and 32,005.721 charged to reserve for contingencies. These charges included: write-off of idle machinery and equipment and write-down of idle
1727
Financial Chronicle
Volume 136
buildings $2,947,111, provision for loss on notes receivable $500,000, reduction in book values of investments in stocks of other companies 5447,323
price reduction on motor cars sold $172,567, amortization of dies, tools and
Jiffs 5199,242, reduction of investment in Commonwealth Alcorn Co.
$72,169, settlement of claims against a predecessor company, loss on sale
of bonds and surplus equipment $102,310.
Consolidated Balance Sheet Dec. 31.
1931.
1932.
1931.
1932.
LtabilWes$
ABMs
g
Capital stock
13,291,285 13,319,285
:Land, bldgs., ma954,759
chinery, atc..___ 8,462,608 13,510,379 Accounts payable.. 365,223
1,242,242 1,010,749 Accruals
644,568
656,595
Investments
Res. foreign exch.
Good-will, trade
22,478
1
names, hcc
1
losses
16,967
Cash,U &este &c 4,903,785. 7,095,977 Dealers' dep.. &c_
106,479
115,304
93,491
y226,061
Accts,receivable
515,025 Accrued wages . 35,347
44,066 Res.for confine_
38,292
554,700 1,952,785
Accrued int. rec
2,115,281 4,271,339 Surplus
Inventories
2,013,260 9,442,718
97,852
Deferred charges
51,586
Total
17,039,857 26,545,390
Total
17,039,857 26,545,390
x After reserve for depreciation of $6,899,076 in 1932 and $10,182,314
in 1931. y Notes and accounts receivable after reserves of $29,919.
-v. 135. p. 4041.
- -...Huyler's of Delaware, Inc.-Resumes Dividend.
On March 1 last a dividend of 1% was paid on the 7% cum. pref. stock,
par $100, it is reported. This compares with regular quarterly payments
of 1%% made from Oct. 1 1927 to and incl. Oct. 1 1932; none since.
V. 134, p. 4566.
Imperial Tobacco Co. of Great Britain & Ireland,
Ltd.
-Bonus of 5% and Final Dividend of 8
The company recently declared an extra dividend of 5% and a final dividend of 84% on the ordinary stock, both tax free. This makes a total of
20% for the year, as against 2234% in the preceding 12 months. A year
ago the company declared a final dividend of 8% and an extra of 734%
The dividend on the ordinary registered shares, free of tax, is payable
March 1 to holders of record Feb. 13. The dividend on the American
depositary receipts, less expenses of depositary, is payable March 8 to
holders of record Feb. 14.-V. 135. p.827.
Industrial Rayon Corp.-Diridend Action Deferred.
Due to existing conditions, the directors on March 8 took
no action on the quarterly dividend ordinarily payable
about April 1 on the common stock, no par value. Distributions of 50c. per share were made on Jan. 1 1933 and
on July 1 and Oct. 1 1932, as against $1 per share each
quarter from Jan. 1 1931 to and incl. April 1 1932.-V.
136, p. 669.
Insull Utility Investments, Inc.-Trustee Named.
The conflict over selection of a trustee in bankruptcy for the company
was settled by Referee Garfield Charles March 7 with the appointment
of Dean Harry A. Bigelow of the University of Chicago School of Law.
Two other men elected at creditors' meetings dominated by the votes
of a bondholders' protective committee were disqualified by Federal judges.
Calvin Fentress was ruled out because of his association with New York
banks, creditors of the bankrupt Insull investment house: W. W. Wheelock's election was voided because the same group, dominating the election,
had solicited claims for the protective committee.
-V. 136, p. 1209.
International Match Co.-Referee Rules Swedish Match
Co. Must File Amended Claim Within 30 Days.
Oscar W Ehrhorn, referee in bankruptcy for International Match Co.,
ha ruled that unless the Swedish Match Co. riles an amended claim within
30 days he will rule out the present claim for $112,247.758. Mr. Ehrhorn
states that the present "proof of claim is objectionable.
Arguments on other major claims by former Kreuger interests were
delayed for one month at the request of James N. Rosenberg. counsel for
Irving Trust Co., trustee for International Match, who said he had been
asked to request the delay to allow time for the new trustee of Kreuger &
Toll to study them.
-V. 136, p. 1384.
International Safety Razor Corp.
-Earnings.
-Calendar Years-Gross profit
Sell., gen. & admin. exp_
1932.
$165.362
121,066
1931.
$590.590
184,936
1930.
$759,081
233.939
1929.
$829.038
253.222
Operating income_ _
Miscellaneous income_ _ _
$14,296
664
$105,654
1,041
$525.142
3.235
$575.816
4.348
Total income
Depreciation
Federal taxes
$14.960
20,127
3.317
$106.695
17,807
46,860
$528,377
15.631
57.868
$580.164
14.027
61,140
Net profit
Class A. dividends
Class B dividends
$21,516
2,465
43,492
$342,028
2,465
347,940
$454,877
$504,997
Deficit
$3,377 sur$154,877 sur$504.997
$24.441
Earns. per sh.00 173,970
shs. B stock (no par)_
$0.11
x$1.95
$2.60
$2.88
x On 174.995 combined shares of class A and B stock.
Balance Sheet Dec. 31.
1932.
Assets
Liabilities
1931.
1932.
1931.
Cash
$64.669
$86,787 y Capital
$247,285 $247,285
Accts. receivable_ _
21,385
40,216 Accts. payable &
Inventories
77,358
sundry accruals_
4.894
125,450
9,378
Property account 163,137
148,277 Federal income tax
Good-will, tradereserve
3,700
47,000
marks, &c
144,129
14,052
142,317 Res. for conting_
15.646
Deferred charges
4,345
5,793 Surplus
205.112
229,553
1932.
Assets
1,980,224
Real estate
Mach.,tools & flu 2.817,127
4,274,415
Inventories
Invest. In International Silver Co.
of Canada, Ltd_ 850,379
925,898
U. S. Govt. sees
23,258
Accr'd int. reedy_
189,045
Due from employ_
60,145
Deferred charges_
Stocks and bonds_ 1,405,549
899.543
Cash
Accts. & notes rec. 2,501,374
Balance Sheet Dec. 31.
1932.
1931.
1931.
Liabilities
3
2,029,559 Preferred stock__ _ 5,950,688 6,028,588
3,035,543 Common stook..- _ 9,119,731 9,119,731
109,249
173,848
4,369,860 Accounts payable_
34,461
Pref. stk.div. scrip
36,586
59.507
105,501
Pref. dive. payable
653,321 2,407,213
919,555 Surplus
1,093,625
31,730
216,340
75,931
1,845,664
927,080
3,326,577
Total
15.926.957 17,871,466
-V.136,p. 1210.
Total
15,926,957 17,871,466
International Harvester Co.-Resignation.-
-V.136.
S.e Commonwealth Edison Co. under"Public Utilities" above.
,
P• 1542.
-Liquidating Div.International Life Insurance Co.
The liquidating dividend of $1.50 per share recently declared on the
capital stock became payable on Feb. 25 last, it is stated. See also V.
136. p. 669.
-Record Shipments.
Interstate Hosiery Mills, Inc.
Shipments during the month of February showed an increase of 103%
over the corresponding month last year. The volume of hosiery shipped
-V. 136.
was the largest of any month in the history of the company.
p. 1384.
-Tenders.
Investment Co. of America.
The company is notifying holders of its 5% debentures series A,due Oct. 1
1947,that.tenders will be accepted up to $250,000 par value at not more than
62% of principal amount and accrued interest to date of payment. Preference will be given according to prices offered. No tenders will be accepted
after March 18. Payment will be made in New York ..xchange if available
or in currency at sellers' option on or before March 4 -V. 136. P. 1560.
-Earnings.Jones & Laughlin Steel Corp.(& Subs.).
1929.
i 930.
1931.
Calendar Years- loss$2,1932.
830,097 $3,349,792 51: ,013,759 $27.639.769
xTotal earnings
553,015
594.705
513,385
451,882
Interest charges
5.367,457
6.196.315
5,119,866
Deprec. & depletion_ _- 4,628,169
loss$7,910,1481ass12283459 $9,093,287 $20.848,749
Net income
Pref. diva. paid_ __ _(4(%)2,495,341 (7)4.109,973 (7)4,109,973(7)4.110.015
2,881,600
4,610.560
864,480
Common dividends
Surplus for year _ __Ioss$10,405,489loss$7257912 $2,101,714 $12,128.174
Previous surplus
67,291,440 74.749.352 72.897,638 61,219,464
Total surplus
$56.485,951 $67,491,440 $74,999,352 $73,347.638
Less-Approp.for pens'n
450,000
250,000
200.000
fund,adjustments,&c.
200,000
Profit & loss surplus__556,68:.: 951 $67,291,440 $74.749.352 $72.897,638
Shs. common stock out576.320
576.320
576,320
standing (par $100)-576,320
$28.26
Nil
$8.77
Earnings per share
Nil
x After deducting all expenses incident to operations, incl, repairs and
and Federal taxes.
maint. of plants and est, provision for all local, State
Balance Sheet Dec. 31.
1931.
1932.
1932.
1931.
$
Liabilities$
Assets
Preferred stock.. 58.713,900 58.713,900
Real estate, ent.
Common stock_ 57,632,003 57,632.000
(after deprec.
& depletion).138,039,794 141.148,833 Jones & Laughlin Steel Co.
Bonds & stocks
let mtge. 58._ 8,770.000 9,929.000
of other c08.. _ 5,064,733 5,014,173
Accts. payable_ 1,585,015 2,248,012
Real estate sales
1,027,493
440,354
Pref.stock div__
contracts and
82,742
73,083
mtzes.. &c_ __ 2,003,655 2,281,240 Accrued interest
952,639
Reserve for taxes 1,079,756
Accident comp.,
Res. for accid't
fire ins. dr pencomp.,lire ins.
sion system fd.
fund &pension
assets
3,820,539 3,759,878
3,817,228 3,652,041
system
Cash
7,577,982 7.943,305
U.S.Govt. oblig. 3,941.104 8,138,616 Other reserves,
except depree.
Oth.market sec_ 3,080,253 3,080,253
and depletion_ 4.730.802 4.767.6.211
Accts. receivable 2,711,062 3,246,915
267,789 Unapprop. surp. 56,085.951 67.291.440
Bills receivable_
384,517
Inventories
26,779,433 31,288,028
129,865
Deferred charges
124.868
Total
-V. 136.
193,527,940 206,296,895
Total
193,527.940 206,296,895
p. 669.
-To Reduce Capital.
.190 4Cellogg Switchboard & Supply Co.
•
28 to
The stockholders will be asked at their annual meeting on March
approve a reduction of capital to $33,795,0013 from $6,325,000 by voting for
the exchange of one new common share of $10 par value for each five shares
of old common stock of the same par value.
At last accounts there were outstanding 301,623 shares of common stock
(Dar $10) and 22.280 shares of 7% cum. pref. stock (par 5100).-V. 134,
P. 4166.
-Parent Company Deposits
Kelvinator of Canada, Ltd.
Funds for Payment of Preferred Dividend.-
The directors have taken no action on the quarterly dividend on the pref.
stock ordinarily payable on Feb. 15. However, under the terms of its
guarantee, the parent company, Kelvinator Corp. of Detroit paid to
the Royal Trust Co., a sum equivalent to 1 N,% or the value of the pref.
shares outstanding, which sum was distributed on Feb. 18 to holders of
record Feb. 5.-V'. 135, P. 4567.
Keystone Cold Storage Co.-Defers Dividend Action.
It is stated that this company will not pay the dividend ordinarily due
Total
$475,023 $548,841
Total
$475,023 $548,841
about April 1 on the common stock, par $50, until further notice, due to the
x After deducting reserve for depreciation of $124,418 in 1932 (1931.
failure of receipt of rentals from the operating company. A semi-annual
$104,292). y Represented by class A stock $2.40 cum, div. cony., no par
distribution of $1.25 per share was made on Oct. 1 1932.
value. Authorized and issued, 40,000 shares. Less: exchange for class B
stock, 38.973 shares. Outstanding, 1,027 shares. Class B stock, no par •••••-..-(S. S.) Kresge Co.
-The directors, at
-Omits Dividend.
value, authorized, 175,000 shares; issued, 173,970.-V. 134, p. 3284.
International Silver Co.
-Earnings.Calendar YearsNet sales
Operating loss
Other income
Loss
Depreciation
Federal taxes
Net loss of Int. Silver
of Canada
Prov. for fluct. In Canadian exchange
Write-down of Govt.sec.
to market
1931.
1930.
1932.
1929.
$7,535,270 $10,573.197 514,492.118 519.600.590
778.845
1,111.272
240.726 pt2,154.584
179.671
199.993
194.227
193,084
$931,601
552,257
$578,853
593.245
118,528
139.090
546,490 pf$2347.667
622,949
719.946
191,441
an adjourned meeting held on March 7, omitted the declaration of the quarterly dividend usually payable about March
31 on the common stock, par $10. Distributions of 250,
per share were made on this issue on Jan. 3 1933 and on
June 30 and Sept. 30 1932, OA against 40c. per share in
preceding quarters.
Treasurer C. B. Tuttle issue:. the following statement:
$857,783 pf$1436.280
$1,567,238 $1,464,906
Net loss
422,002
422,002
238,810
422.002
Preferred dividends-- (730683,985 (8)729.584
Common dividends
The present banking situation throughout the country dictates the
utmost conservation in the use of working capital and, while it is moat
regretfully done, the directors feel that it is wise and for the best interests
of the stockholders to distribute no dividend on the common stock for the
first quarter of the year.
Sales for Month and Two Months Ended Feb. 28.
Decrease.
1933
-February-1932. Degreased 1933-2 Mos.-1932.
58.053,868 $9,082,214 51,026,346[515,760.257 $17,925,608 $2,165,351
1933, the company had 676 American and 43
At the end of February
Canadian stores or a total of 719 stores, as against a total of 713 at the end
of February 1932.-V. 136, P. 1561.
$1,806,048 51,886.908 51,963,770 sur$284,693
Deficit
2,407,213
4.2114,121
653,321
6,248,105
Profit and loss
No. of coin. shs. outst'g
91.197
91,197
91,197
91.197
(par 5100)
Nil
Nil
Nil
$11.12
Earns. per sh. on corn...,
1933-February-1932.
$3,895,802 54,697,867
-V 136, p. 1027.
Cr35,146
188.335
91,087
62,632
(S. H.) Kress Co.-February Sales.
Decrease.] 1933-2 Mos.-1932.
5802,065157,808,785 58,971.851
Decrease.
51,163,066
1728
Financial Chronicle
Kreuger & Toll Co.-Data on Certificates Submitted to
Stock Exchange by Protective Group.
The protective committee for the 5% secured sinking fund gold debentures, headed by Grayson M.
-P. Murphy, has supplied the
Exchange with information in regard to class A and class New 'York Stock
B certificates of
deposit issued under the protective agreement. The certificates
were
authorized for listing on Feb. 6, and the class A certificates were listed
on
Feb. 8.
"Class A certificates of deposit will be issued against deposited
bentures in respect whereof individual proof of claim has been filed in dethe
American bankruptcy proceedings of Kreuger & Toll Co." the committee
reports. and "also in substitution for and on transfers of class B certificates
of deposit as and when amended individual proofs of claim founded on
the debentures represented by such class B certificates of deposit are
allowed.
"Class B certificates of deposit will be issued on and after Feb. 8
against deposited debentures, no proof of claim in respect whereof has1933.
been
filed in the American bankruptcy proceedings of Kreuger & Toll Co. other
than proofs of claim filed by the trustee under the debenture agreement,
dated March 1 1929, for the benefit of all holders of the debentures.
"If it should ultimately be held that there is no distinction in the American
bankruptcy proceedings between the debentures represented by the class A
and class B certificates of deposit, notice thereof will be given to the New
York Stock Exchange and the holders of class B certificates of deposit will,
It is expected, then be privileged to exchange their certificates of deposit
tor class A certificates of deposit."
Files of Jordahl & Co. Impounded.
Books and correspondence files of Jordahl & Co., formerly the American
Kreuger & Toll Co. were impounded March 9 at a hearing into the affairs
of the company before Referee Henry K. Davis at 140 Nassau St. They
were produced by Anders Jordahl, President, who appeared under
poena obtained by counsel for Edward S. Greenbaum. trustee in a subbankruptcy for the Kreuger & Toll Co. Mr. Jordahl was questioned briefly
and
directed to appear again on March 23 with memoranda relating
accounts maintained here by the late Ivar Kreuger.-V. 136, to brokerage
p. 1561.
Kroger Grocery & Baking Co.
-Sales.
-
Period End,Feb.25- 1933-4 Weeks
-1932.
1933-8 Weeks
-162.
$14,842,437 $16,747,226 $29,470,580 $33,414,280
The average number of stores in operation for the four weeks ended
Feb. 25 1933 was 4,707 against 4,874 in the corresponding period of 1932,
a decline of 3%.
Retail food prices declined 13% between Jan. 15 1932 and Jan. 15 1933,
=cording to the Bureau of Labor Statistics of the U. S. Department of
Labor.
-V.136, p. 1661.
Sees
Lane Bryant, Inc.-February Sales.
1933
-Feb.
-1932.
$670,330
$869.204
-V. 136. p. 1028.
Decreased 1933-2 Mos.-1932.
3198.874131,474,591 $1,818,847
Decrease.
$344,256
Lawyers Mortgage Co.-Asks Reduction in Mortgage
Rates.
The company has asked holders of its guaranteed mortgage
to accept a reduction in interest rate from 5% to 4% from the certificates
last interest payment and to agree to extend the principal of their date of the
certificates
and the underlying mortgage.
The interest reduction and extension of maturity would be not
beyond
July 1 1936.
The company's letter to bondholders states that the benefit
of
ductions will be passed on to the owner of real estate with a view to the resecuring
prompt payment of interest and taxes.
The company agrees also to pay no dividends on its common
stock
while the reduction is in effect.
The guaranteed certificates have provisions that the
mortgage interest the day it is due, whether collected company advance
or not, and that
not later than 18 months after maturity and written demand it
should repay
the principal whether collected or not. The 18 months clause
has been
invoked as demands for payment of principal exceeded ability
to resell the
mortgages.
"There is an obvious limit to this process," President Richard
M.
says. "It is accordingly most imperative that we have your supportHurd
at the cost of a temporary concession in your interest rate and the even
postponement of principal. The real estate securing your investment
has
not earned the operating charges, taxes and the rate of interest
which your
certificate calls for."
Destruction of capital and widespread unemployment, he told
holders, have resulted in lower rentals, increased vacancies certificate
and greater
difficulty in collecting rents.
"This means that hard pressed real estate owners are not collecting
enough to pay high taxes and high interest rates. Up to the present
forecloaures have been the remedy, but now so many foreclosed
are being thrown on the market that they cannot be sold. It is properties
one solution
for mortgage holders to wipe out real estate owners, but it is a solution
that
Is disastrous to both. For mortgage holders in their own interest
out during the present depression is to lower the rate ofinterest and the way
postpone
demands for payment of principal until general business revives."
-V.
136, p. 336.
Lawyers Title & Guaranty Co.
-New President, &c.
-
Albert W. Haigh, President of the Lawyers Westchester Mortgage &
Tills Co., has been elected President, succeeding Louis V. Bright
who has
been elected Chairman of the Board.
-V.136. p. 336.
(Louis K.) Liggett Co.
-331 Landlords Accept Rent
Reduction.
-
March 11 1933
Loose-Wiles Biscuit Co.(& Subs.).
-Earnings.
-
Calendar Years1932.
1931.
1930.
1929.
Net prof, after oper. exp.c$2,367,541 633.172.144 $3,674.225 a$3.828,69
4
Interest
36.710
70,694
93.495
See a
Depreciation
838,285
843.215
794,681
761,598
Federal taxes
169,563
270.000
320,452
335.000
Net income
$1,322,982 $1,988.235 $2,465,597 $2,732,096
Sink,fund of 1st pf. stk.,
150,000
150.000
150.000
150,000
Subside. pref. diva
8,562
17.230
First pref. diva.(7%)_
251,025
268,396
271.149
273,214
Common dividends
1.354,966
1.644,352
1.461,804
1,174.986
Balance, surplus
def$433.009 def$74,513
$574,082 $1,116.666
Profit & loss surplus_ -- _ 8,419.274
9,137.774
9,304.757
8.078.097
Com,shs. out. (par $25)
526,000
547,991
548,303
500.000
Earns. per share on corn_
$2.04
$3.14
$4.00
$4.88
a After interest charges. b Includes other income
of $304,803. c Includes other income of $194,460.
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
Assets-$
$
Liabilities-$
$
bProperties
18.044,553 18,719,634 1st pref. stock-- - 3,551.300 3,714.200
Inventories
2,363,393 3,022,244 Common
Accts. receivable 2.057,910 2,573,529 Long termstock-- _13,150,000 13,699.776
debt___ 405,000
571,000
Investments
372,619
486.397 Notes payable__
a500,000
Marketable secur_ 393.080
680,777 Accts. pay., &c....- 637.178
740,776
Cash surr. val. of
Short-term bonds_
354,000
life ins. policies_
65.003
Fed. tax & continEmploy. corn. stk.
gency reserve... 180,000
271,596
purchase plan-- 349,186
902.013 Stock redem. res. 778,621
807,159
Cash
1,852,428 1,723,527 Surplus
7,640,653 8,330.815
Deferred charges__ 844,577
881,000
Total
26.342,750 28,989.121
Total
26.342,750 28,989,121
a Notes payable which represent borrowed funds to finance
stock purchase plan for employees has been liquidated since the common
the close
Dec. 31 1931. b Includes buildings. equipment, good-will. trade-markof
s,
&c.,and is after deduction for depreciation of$8,699,752 in 1932
and $8,141,
230 in 1931.-V. 135. p. 3865.
Furniture Shops, Grand Rapids, Mich.
-Deposit
of Bonds Urged.
The protective committee for the 1st mtge. 6%% sinking
fund gold
bonds due Nov. 1 1940 consists of Henry G. Lodge, Chairman,
of E. H.
Rollins & Sons, Inc. Chic.ago• C. Hoogesteger. of Mid-West
Grand Rapids, and James B.'Van Vleck, of Central RepublicSecurities Co..
Co , Chicago.
All communications should be addressed to Henry G.
Lodge, Chairman,
Room 1007. 231 South La Salle St. Chicago, Ill. Counsel
are
Uhl, Bryant & Snow, Grand Rats, Mich. The depositary Knappen,
is Grand
Rapids Trust Co., Grand Rapids, Mich. Central Repub
ic Bank & Triad
Co., Chicago, is sub-depository.
In a letter dated Feb. 24 to the bondholders, urging the
prompt deposit
of their bonds, the committee states:
There was an estimated net loss of $300,578 for the
year
1932. A decrease in working capital of $202,735 during ended Dec. 31
the period is
Indicated.
While the balance sheet as of Dec. 31 1931 showed
under current liabilities $600.000 in unsecured loans from Kroehler Manufactur
ing Co.,
the parent company. the Dec. 31 1932 statement shows
Kroehler Manufacturing Co. of $478.487, divided between notes payable to
$100,000
by chattel mortgage on inventory andthe balance by assignment secured
of notes
and accounts receivable. It is reporte d that interest
has been paid on these
notes at the rate of 6% per annum.
An audited report prepared as of Sept. 30 1932 shows
for
1930 to Sept. 30 1932, Kroehler Mfg. Co. charged Luce the period Feb. 1
Furniture Shops
$58.600 for administration services. In addition. Kroehler
Mfg. Co.
charged $18,794 during the period for other services.
The committee has endeavored to negotiate for an
tion of Luce Furniture Shops and has had correspondequitable reorganizawith that end in view. The committee has therefore ence and conferences
It has felt would interfere with a constructive solutiontaken no steps which
of the
fronting the bondholders. It has, however, protested certain problem conacts of Kroehler Mfg. Co., as referred to above. In reply to our letter
of protest, Kroehler Mfg. Co. has just intimated that it now intends to liquidate
the assets
of Luce Furniture Shops.
Recognizing that the pledging of the current assets
to
Mfg. Co. advances and the withdrawal of funds by the secure Kroehler
parent company
are most prejudicial to the interest of the first
particularly since liquidation of the assets of Lucemortgage bondholders,
prospect, two large blocks (about 12.6% of the entire Furniture Shops is in
bonds) have just been pledged to the committee for issue of first mortgage
immediate deposit.
Although the committee brought out in its letter of
July
some difficulty was anticipated, many of the bondholder 16 1932 that
s have quite
probably expected an early and equitable reorganizat
as appears by the fact that only about 48.6% of the ion of the company.
first mortgage bonds
have been placed under the control of the committee.
This percentage is
too small to permit the committee to take effective
action.
be apparent to all that immediate deposit of substantial It should now
ly all the bonds
is imperative if the committee is to be placed in a
position to take such
action as may be necessary in its opinion and that of
its counsel to fully
protect the interest of the bondholders.
Estimated Balance Sheet Dec. 311932,
Cash on hand and In banks
$8,582
Cash in transit from Kroehler
Mfg. Co
25,000
Notes & accts. receivable (net) 182,287
Inventories (est.)
234,051
Fixed (mortgaged) assets
1,435,927
Other assets
24,625
Notes pay., Kroehler Mfg.Co. $478.437
Accounts payable
22,903
A cco s xndiaxes es commis_
sir.. ea ps wag
Bcsrued i:.n pyabh ()ant Mich.bonda
Aaj owin to pa urel.
e
15
81, 62
30 6 1
A total of 331 landords of the company, subsidiary of Drug
Chair Co. and Stone-Hoult
Inc., have
consented to rent reductions representing an aggregate of
$1,315,226 over
Furniture Co
40,000
the period of a year, according to a statement issued March 3
First mtge. sink. fund 6
by the
1,368,000
Liggett Landlords' National Protective Committee.
7% pref. stock
1,06 :
40000
27 000
In its letter the committee states that "this amount is not yet
Common stock (no par)
sufficient
to Insure the success of the plan and the continuation of the Liggett
Deficit
busi1,599,733
ness, but it is approaching the point where such an assurance can
be
It is the unanimous opinion of the committee that renewed efforts made.
Total
81,908,471
Total
should
61.908,471
be made to obtain additional consents from those landlords who have
-V. 134. P. 3286.
not
as yet co-operated."
The committee reports further that the company officials have
-------Lukens Steel Co.
-Bond Plan Operative operated with them fully in an effort to reduce operating expenses, coThe protective committee for holders of 1st mtge..
and
that drastic reductions have been made in both overhead and salaries
8% gold bonds has
announced that the plan to adjust the bonds is operative
during
December and January. The committee is urging some further
with approximately
91% of the issue deposited with the committee.
economies.
-V. 136. p. 1212.
-V. 136. p. 1385.
Lloyd & Casler, Inc. (Textile Center Bldg.), Los
Angeles.-Committee.
Organisation of a protective committee for the6%% serial bonds
has been
announced as the result of the company's failure to meet
interest and
sinking fund requirements. Of an original issue of $400,000, a
total of
$356,000 outstanding. Members of the protective committee are
Hugh
McFarland, George A. Collins, R. S. Newman and B. P. Lester,
Secretary.
The Security-First National Bank. Los Angeles, is depositary.
-
.Logan Gear Co., Toledo, Ohio.
-To Decrease Capital.
-
The stockholders at their annual meeting March 14 will be asked to vote
on a reduction of capital from $1,100,000 to $665,000. It is proposed to
charge off $250,000 from fixed assets of the company to conform to present
day values.
A balance sheet showing the effect of the proposed changes
and fixed assets indicates that there would be current assets ofin capital
$3335.039
against current liabilities of $282,605 and total liabilities of $290.605. After
the changes the company would have a surplus of $97.688. which, with
59.220 shares of preference stock and 129.945 shares of common stock,
would be carried at a value of $749,472.
The annual report of the company for 1932, including the Michigan
Stamping Co., showed a gross profit from sales, before depreciation,
of
$109.020. Depreciation was charged at $72,264. Administration
and
selling costs were listed at $148,239 and interest and discount at
leaving a net loss from operations during the year of $124,111$12,627.
(Toledo
'Blade").
-V. 132. p. 2783.
Ludlum Steel Co.(& Subs.).
-Earnings.
--
Calendar Years1932.
.1931.
a1930.
.1929.
Net sales
$2,044,458 $3,203,580 $44,430,936 $7,769,577
Cost & oper. expense.,.. 2,361,656
3,216,912
4,716,036
6,642,907
Loss from operations_
$317.198
$13,331
$285,100prof$1126670
Depreciation
124,258
93,815
188,734
141,515
Net loss from oper--. $4441,456
$107,147
3426,615prof$937,937
Other income
32,395
63,942
40,907
107.088
Loss
$4409.061
$43,206
$385,708prof$1045026
Int. on funded debt_
6,142
Amort. bond discount923
Taxes
53,497
55,939
118,429
47.989
Other charges
11.752
Deficit
c$474.311
$99.144
$433,697 sur$919.531
Pref. drys. (estimated)_
292,506
243.750
Common dividends
scow)
239,225
Deficit
*414.all aefaan,144 chZ , 'uz,4
S287,800
.--a
Shares capital stock outstanding (par $l)__ - _
198,405
b204,000
b170,000
6204,000
Earnings per share
Nil
Nil
Nil
$3.68
a Includes Atlas Steel Corp. b No par shares.
c Of this $375.063 being the net loss for the period from Jan. 1 to Oct. 31
1932 was transferred to capital surplus, leaving the operating deficit for
the remaining two months $99,247.
Volume 136
$395,313
4317.767
220,236
38,735
Total
$4,972,051
Excess of cost of treasury corn, stock over par value of $1 per sh_
87,085
Cost offinancing pref.stock issue previously carried as a deferred
item
397,952
Adjustments to reduce to cost the net value offixed assets which
heretofore included appreciation resulting from appraisal:
Elimination of apprecia n in gross plant value due to appraisal
396,408
Restoration of that portion of res. for deprec. heretofore
eliminated by appraisal
650.361
Elimination of appreciation in pats.& process due to appraisal
6,937
Balance
Refund of Federal income tax
$3,433.307
26,819
Total
$3.460,126
Adjustments for taxes, royalties, receivables & other expenses
affecting prior years
85,019
Development costs capitalized in prior years now written off
245,001
Adjustment of inventories
699,677
Write-off of plant items previously capitalized
71,376
Provision for loss on investments
12.499
Write-down of assets of subsidiary company
54,077
Loss for the period from Jan. 1 to Oct.31 1932 transferred from
profit and loss account
375.063
Capital surplus as at Dec. 31 1932
$1,917,414
Comparative Balance Sheet Dec. 31.
1931.
1932.
1932
1931.
Assetss
Liabilities$
Permanent assets.x 3,668,261 4,928,830 Preferred stock__ 4,595,000 4,990,000
Cash
654,419 Common stock__ y198,405 x4,521,767
637,324
131,512
Notes receivable...1 281,081 f 34,598 Accts. payable__
51,369
Accts. receivable._1
33,555
1334,922 Accrued accounts_
Investments
Fed. Inc. & other
180.807
30,089
32,557
Inventories
taxes
1,721,879 2,719,688
13,791
Other curs. assets.
465,348 Res. for POS. contin
14,254
Other assets
75,273
93,196 Royalties
Pats.,form.& pros 138,307
151,166 Sales exp., incl.
17,422
commissions.....
Contracts
28,999
395,313
704,862 Surplus (earned)24.243
Deferredcharges._
Capital surplus... 1,818,167
6,727,175 10,116,028
Total
6,727,175 10,116,028
Total
x After depreciation of $2,830,352. y $1 par value shares. z Repre-V. 135, p. 3366.
sented by 204,000 no par shares.
McKesson & Robbins, Inc.-Reduces Fixed Assets Valuation by 50%-Current Position Improved-Sharp Reduction in
Bank Loans-Write-Offs Result in Operating Deficitfor 1932.
The annual report, which is expected to be issued within the next 10
days, will show a net income, after deducting all expenses and cost of merchandise and crediting other income, of about $660.000, before provisions
for interest on the debentures and other charges. After deduction of such
charges and crediting income tax adjustment, the net operating loss for
1932 was slightly in excess of $900,000, compared with a profit after all
deductions of 31,845,000 reported for 1931. The amount charged off out
of earnings against receivables was substantially in excess of the operating
deficit and greater than in any previous year.
Sales volume for 1932 held up fairly well considering conditions prevailing
last year, the total exceeding $104,000,000, or about 13% less than the
total reported in previous year.
The company substantially reduced its indebtedness as of Dec. 31 1932,
the result being that the current financial position was about 6.4 to 1 as
against 5 to 1 at the close of 1931. Current assets were in excess of $47.500.000, including approximately $2,700,000 cash, $16,500,000 accounts
receivable and inventories of $23,800,000, against total current liabilities
of 37.400,000. Cash on hand was only about $100,000 less than the previous
year. Bank loans and trade acceptances were reduced approximately
$2,600,000 and inventories nearly $4,500,000. The report also will reveal
a reduction of about $1,000,000 in the amount of outstanding debentures
to $20,075,000 as of Dec. 31 1932.
The board of directors has nodded on a substantial re-valuation of the
company's fixed assets to conform to present day value. A re-appraisal
by the American Appraisal Co. has reduced lands, buildings, equipment.
leaseholds, &c.,from $10,909,778 after reserve for depreciation to $5,573,000
after reserve. The directors have determined further to set up a special
Contingent reserve of $4,000,000 against those receivables and investments
which have been carried among the slow assets. This is an additional
reserve provided because of the economic conditions in the country and is
only made after full regular reserve has been made for all known, doubtful
and bad accounts in the operating statement of the company, it being the
feeling of the directors that it would be conservative to have such a general
reserve at this time.
-V. 135, p. 4226.
M-A-C Plan of Hartford, Inc.
-Omits Dividend.
The directors have voted to omit tlie quarterly dividend ordinarily
payable about March 15 on the no par panic. pref. stock. A distribution
of 30 cents per share was made on Dec. 15 1932, as against 50 cents per
share previously paid each quarter.
-V. 136, p 1029.
Mapes Consolidated Manufacturing Co.
-Rights,&c.Tho directors, at a meeting held Jan. 31 1933, determined that an increase in the authorized capital stock of the company from 120,000 shares
of no par value to 150,000 shares of no par value was desirable. This
resolution was ratified by the stockholders at the regular annual meeting
held on Feb. 23, and pursuant hereto the directors have voted to offer
at $25 per share 10,000 shares of the authorized but unissued stock to
shareholders of record March 10 1933 in the ratio of one share to each
12 shares now held. Payments are to be made to the order of Blake
Brothers & Co., as agents of the Mapes company, in New York or Chicago
funds on or before March 31 1933.
As a result of the offering of these shares the company will be enabled
to complete the acquisition of certain patents, machinery and other assets,
which, in the opinion of the management, will afford added security to
the future of its business, states President Winfield H. Mapes.
Net earnings in the year ended Dec. 31 1932 after all charges, including
provision for Federal income and other taxes, were $372,679. equivalent
to $3.10 per share on the capital stock outstanding. Dividends at the rate
of 75 cents per quarter were paid, with two extra payments of 25 cents
each, or a total of $3.50 per share for the year. These payments, together
with reserves, resulted in a reduction of surplus of $97,321. It should be
noted in a consideration of the balance sheet as presented that cash for the
payment of the final quarterly dividend distributed on Jan. 2 1933 had
previously been _paid to the dividend disbursing agent, adds Mr. Mapes.
-V. 136. P. 15 3•
0
Asiemb.,
Marblehead Land Co. Los Angeles.-Defaults on Bonds.
Holders of the first mortgage 6% sinking fund bonds due March 1 1948,
'
have been notified by the company of its inability to pay the interest due
March 1. The notice, issued by M. K. Rindge, President, stated that
steps were under way to organize a protective committee which will communicate with the bondholders at a later date.'
In announcing the default, the company explained that all readily
marketable collateral pledged under the agreement dated March 1 1928,
has been sold in an endeavor to fulfill the requirements of the trust indenture.
Proceeds from sales of real estate during the last 12 months have not been
sufficient, it is explained, to provide the company with funds to meet its
-V. 126, P. 2487.
immediate obligations under the trust indenture.
Massey, Harris Co., Ltd.-New Director, &c.
H.V.McKay.
a
W.H. Moore has been elected itdirector to succeed the latereceivables due
announces that anticipates some losses on
The company
$3,000,000 farm
to the foreign exchange situation, particularly on Canadian money.paper in
Similar
Australia, at par with funds 30 to 33% lower than
difficulties exist in Argentina, New Zealand, South Africa and in Europe,
-V. 135, p. 1670.
the exception of France.
with
1729
Financial Chronicle
Consolidated Capital Surplus Dec. 31 1932.
Surplus at Dec. 31 1931
Add'n through change in corn.stk.from no par to $1 par per sh
Add'n through purchase of pref. stk. at less than issue price:
3,450 shares canceled
500 shares in treasury
-Earnings.
Marchant Calculating Machine Co.
Calendar YearsNet sales
Cost of sales
1930.
1929.
1931.
1932.
Not
$1,072,516 $1,716,876 $2,371,194
621,763
available
398,138
713.456
Gross profit on sales
Income from repairs,
service & rentals
$508,451
Total income
Selling expenses
Gen.& admin. expensesOther deductions (net)
Prov.for Federal taxes
$508,451
528,503
50.275
145.536
$674,378 $1,095,113
$1,657,738
98.454
63.226
147.354
$821.733
755,863
77,506
143,392
loss$215,8651oss$155,028
Net profit
Preferred dividends.....8,713
Common dividends
31,193,567 $1,720,964
1,060,875
889.979
106.405
97.664
105,610
77,474
48,700
15,809
$112,641
17,427
150,453
$399.374
17,427
74,627
$55.239 sur$307,320
$163,741
Deficit
3215.865
Bhs. common stock out186.566
188.086
188,066
standing (par $10)_ _ _
188,066
$2.04
$0.50
Nil
Earnings per share
Nil
Comparative Balance Sheet Dec. 31.
1931.
1932.
1931.
LiabilUies1932.
Assets
$20,300
Cash
562,928
571,692 Patent pur. contr.
9,673
13,712
172,445 Accounts payable_
Cust's accts.. &c.. 131,301
Inventories
757,226
849,138 Payroll and corn'
10,297
8,744
49,923
Adv.to salesmen..
49,979
missions
Customers' credit
Customers' & em607
10,664
balance
ployees' notes....
General reserve.... 120,697
Adv. to Insto311
13,786
11,000 Interest
graph, Ltd
3,050
5,057
9,888 Res. for conting
Other accounts...
Mainten. charges
x Land, buildings,
31,036
31,458
unearned
machinery and
248,961
700,901 Pref. 7% cum.stk. 248,961
equipment,&a.- 643,756
Common stock_ _ 1,880,664 1,880,664
.
Pat'ts, patent ap93,964
93,964
933,977 Unearned surplus.
plications, &c... 932,275
363,493
363,493
Paid-in surplus__
1,254
Prepaid advertising
155,200
del157,615
Profit & loss
Uncompleted tool
1,299
room orders_
4,420
4,860
Prepd. taxes & ins.
2,318
1,546
Other def. charges_
$2,604,686 52,816,950
Total
Total
$2,604,686 $2,816,950
x After depreciation of $399,091 in 1932 and $481,546 in 1931.-V. 134.
0.2353.
Miami Bridge Co.
-No Interest on Bonds.
-year 6%
F. E. Frothingham, Pres. in a letter to the holders of the 20
Income debenture bonds, stales:
Directors have determined that there is no surplus income from the
1932 ne Iir
. n ntglgi
1
.
.
operation of the pro e ey ethLfiz.1 ye.,r
neeencltie
0
tw% a
io
n
l
t degf for t
re
2.
no interest is due and payable on the bonds outstanding on Feb. 28 1933.
Revenues and Expenses for Calendar Years.
1932.
1931.
1930.
1929.
$49,169
$65,990
$78,992
Bridge revenue
$64,421
1,440
4,608
Other revenue
4,180
1,631
Des./..1
ic ,
Total
Operation
Maintenance
Taxes
866.053
29,091
2,106
7,307
38,3,173
35,522
16,053
7,331
$70,598
37.122
24.183
8,000
$50.609
26.355
6,639
5,827
Net earnings
Depreciation
Other deductions
$27,548
26,386
824.266
16,523
$1,291
16,9s9
$11.788
12,150
184
$1,161
$5,742
$15,628
Balance, deficit
Deficiency at start of year
(corrected)
$546
3,906
$4,452
Deficiency at end of year
600,812
781,362
901.314
Vehicles crossing bridge_
766,689
Balance Sheet Dec. 31 1932.
LiabilItiesAssets
$1,487,491 Capital stock (14,830 shares
Fixed capital
$14,830
5,541
no par)
Cash
1,483,000
60 Income debentures
Accounts receivable
.23
315 Accounts payable
Meter deposits
.1,368
19,680 Taxes due
Deferred assets
14,985
2,798 Reserves for depreciation
Deficit
1,680
Emblems for 1933 sold In adv.
$1,515,887
Total
$1,515,887
Total.
*All of the current liabilities were paid in full during the month of
January 1933.-V. 134, p. 1776.
-Earnings.
Melville Shoe Corp.(& Subs.).
1929.
1931.
1930.
1932.
Calendar Years-$20,594,312 $26,286,519 $28,654,300 $25,520,675
Sales
12,973,738 17.056.509 18,700.452 17,042.711
Cost of sales
6,535.498
7,463.658
8.054,735
Admin.& gen. expenses- 6,227.675
424,952
532,307
539,157
Depreciation
500,697
Net operating profit__
Miscellaneous income_ _ _
$892,200 $1,227,195 81.366.805 $1,517,514
31.177
143.730
315.672
45.496
Gross income
$937.696 $1,258,372 31,510,535 $1,833,186
53.347
18,523
17,828
Interest
5,726
49.102
219,985
49,964
Miscellaneous charges_ _
126,365
Reduc. of prov,for depr.
resulting from revel.
Cr.138,592
of fixed assets
Net inc. of selling cosNet inc.ofsubs.realty co.
$944.197 $1,020,558 $1,442,048 $1,730,737
86,134
58.990
57.664
155,553
Total income
Federal taxes
$788,644 $1,078,223. $1,528,182 $1,789,727
132.229
152,602
195,510
67,000
3945.994 31.375.580 $1,594,216
Net Income
$721,643
Previous surplus
3,440,127
2,587.537
3,629,832
3,619.137
Profit on red, of pref.
stock owned
1,632
9,520
24,827
7.523
Burp. arising from lamed
fractional certificates_
512
Adj. of prior period rent
7.633
Total surplus
84.376.302 84.575,164 34.830.863 34,183.385
178,708
Pref. diva. (all classes).173.161
167.187
161.309
496.126
Common dividends
734.379
742,922
556,652
Adjust. of Federal taxes
487
27,532
to prior years
6,921
3.373
Reduc,of net book value
of fixed assets to est.
replacement value._ _
. x725,678
Bonuses & commissions
paid for lease cancell.
& rent reducts. (net).
200.929
28.300
59.443
Loss on sale of property_
50,616
Disc, on stk. purchased8,494
Loss on equip. abandon_
151,652
Prov. for loss on inv. in
183.133
Broadway Block Corp.
125.000
Profit & loss surplus__ $2,494,611 $3.629.832 $3.619.138 $3,440,127
Shares of common stock
354.376
371.461
371.461
371.461
outstanding (no par)$3.99
$1.50
$2.09
$3.23
Earnings Per share
x After credit adjustments of $122.460.
1730
Financial Chronicle
Consolidated Balance Sheet Dec. 31.
Assets-1932.
1931.
1932.
1931.
LiabilitiesCash
$3,235,277 $2,404,145 Accounts payable_ $746.611 $737,794
Notes & accts. rec.
59.881
85,394
62,126 Accrued liabilities_
71,603
Inventories
2,349,270 3,136,613 Accounts of officers
Adv. to officers &
8,837
27.550
and employees__
employees
17,988
67,000
5,456 Fed. income tax__
132,228
Invest. in dc adv.
Deposits on subto B'way Block
leases and store
Corp
111,979
53,485 mgrs.secur. dep. 110,432
Prepaid rents, in125.000
Note payable
surance, &c....
93,051
141,642 Res. for self-Ins. &
Investments
153.974
91,534 store replacemls 109,701
87.784
b Fixed assets
2,021.788 3,196.458 6% cum. let pref. 2.167,800 2,274.300
Deferred charges
49.280
56,798 6% cum.2d pref._ 499,960
499.950
Common stock in
464.328
a Common stock__ 464.328
treasury
9,863
Paid-in surplus.-- 1,110,881 1,110,882
Operating surplus_ 2.494.612 3,629,832
Total
$7.990,354 $9.148,238
$7.990,354 $9,148,238
Total
a Represented by 371,461 shares of no par value. b After reserve for
depreciation of $1,728.389 in 1932 and $2.071.710 in 1931.-V. 136,P. 1563.
Midland Steel Products Co.(& Sub.).-Earnings.
-
Calendar YearsManufacturing profit_ _ _
Expenses
1931.
1932.
1929.
1930.
$661.182 $2,042,536 82,599.555 $4,701,893
463,344
623,877
595,220
617.421
Operating profit
Other income
$197,839 $1,418.659 $2,004,335 $4,084,473
88,232
102,934
245,534
239,299
"
Total
Interest, discount, &c.
Employees prof. sharing
Depreciation
Federal taxes (est.)
$286,071 $1,521,593 $2,249.869 $4,323,771
399,738
392.403
179,989
594,912
610,849
507.366
576.206
400,000
203.000
135.000
Net income
def$221,296
Preferred dividends_ --759 400
Rate
(A%)
$2 pref. stock dividends_
Common di vidends
Deficit
AssetsLand, mach.. &c__
Good-will & pats__
Cash
Ctfs. of deposit
sTreasury stock
Govt.securities_ _
Joint stock land
bank bonds _
Accrued interest
'Notes & accts.ree
Inventories
Other assets
Deferred charges
$775,744 $1,271.968 $2,555.424
770.402 1,308.555
760,000
(13)%)
(8%)
(8%)
172.060
127.540
717.346
709,395
328.875
$387.841 sur$917,994
$821,191
$980.696
Balance Sheet Dec. 31.
1932.
1932.
1931.
1931.
Ltabiiittes$
$
4.933.097 5.377,480 Preferred stock... 9,693.000 9,693,000
1,915,879 1,675.000 :Common stock__ 2,423.250 2.423.250
300.062 1,719.167 $2 non-cum. div.
1.000.000 4,250.000 stock
9.693
9.693
989.114
989.113 Accts.
_ 204.230
437.722
74.930 Accrued accounts.
3,590.607
payable_35.010
174.219
Reserves
600,000 1,000,000
50,000 Profit & loss surpl. 1,368,230 1,948,926
16,808
2.559
494.775
770,244
809.100
843.164
31.187
36.889
143,258
207,796
Total
14,333,419 1.5,686,810 Total
14,333,419 15,688,810
x Represented by 242,321 (242,325 in 1931) no par shares, including four
(16 in 1931) shares reserve for exchange. y After deducting 845,000 allowance for doubtful notes, discounts, accounts and allowances. z Represented by 7.410 shares of common, 2,005 shares of 1st pref. and 39,030
shares of non-cum. pref.-V. 136. p. 1386.
Midwesco Theatres, Inc., Milwaukee.
-Receivership.
-
Julius J. Goetz has been appointed receiver in bankruptcy by Fred C.
Westfahl Jr., Federal Bankruptcy Referee at Milwaukee, Wis.-V. 136,
p. 1563.
-Honeywell Regulator Co.
Minneapolis
-Voting Power
Vested in Preferred Stock.
Notice of the annual meeting of stockholders to be held March 211933,is
being sent to preferred stockholders instead of to common stockholders as
in the past.
The company's certificate of incorporation provides that voting power
shall be vested exclusively in preferred stock if and when four quarter
yearly dividends on preferred are in default.
-V. 136, p. 1030.
Mohawk Carpet Mills, Inc.-Listing of New ,Stock.
The New York Stock Exchange has authorized the listing of certificates
for 600,000 shares of common stock. par $20 per share, on official notice of
Issuance on a share for share basis in substitution for certificates of common
stock without par value now outstanding and listed.
The stockholders on March 7 approved the change in the par value.
Directors on Feb.8adopted resolutionsapproving a plan to create an appropriation of surplusfor the purpose of reducing the item carried on the balance
sheet of the company under the Mal "property, plant and equipment," &c.,
after reserve for depreciation at $11,551.078 as at Dec. 311932, to $3.551.078 as at said date. Resolutions were also adopted recommending a reduction
in the amount of capital of the company from $15,000,000 to $12,000.000.
The proposed reduction of capital in the amount of $3.000.000 and a corresponding reduction in the property account will substitute in the balance
sheet as of Dec. 31 1932 a capital of $12,000,000 in place of the present
statutory capital of $15.000,000. and a valuation on the property, plant and
equipment account of $8,551,077 after depreciation in place of $11,551,077
after depreciation. No other items will be affected by such reductions.
Pro Forma Balance Sheet as at Dec. 31 1932 (Giving Effect to Proposed Change
as Outlined Above.)
Assets
LiabllitiesCash
$1,559,210 Trade accounts Payable
$67,540
Custs. accts. rec., less res.973,507 Accrued liabilities
14,884
Notes & oth. accts. rec..
Capital stock (600.000 stub
•
less reserve
par $20)
12,000,000
4,052,413 Earned surplus
Inventories
4,097,016
Company's stock
2266,538
Investment securities
37.930
Prepaid expenses
43.002
Prop., plant & equipment__ 8.551,078
Total
$16.179,240 Total
$18,179,240
a
1212.35,000 shares held in treasury (market value $271.250).-V. 136. P.
Moira, Ltd.-Plan Adopted by Bondholders.
Plans calling for the reorganization of the financial structure of the company with a reduction of the principal amount of bonds outstanding by
50%. a re luction of interest rate and cancellation of interest coupons until
after 1935. were adopted at a meeting of the company's bondholders Feb.
28. See also V. 136.p. 1386.
4 Monsanto Chemical Works.
.1%
-Proposes to Reorganize.
At the annual meeting to be held on March 28, a proposal to reorganize
the company under the laws of Delaware will be submitted to the stockholders,
The action is recommended by the board in view of the Missouri corporation income laws which include taxes on dividends received from
subsidiary companies. Because of the relative importance of Monsanto's
subsidiaries earnings and for other corporate benefits, it is proposed to
Incorporate the company in Delaware where such taxation is non-existent.
-V. 135. p. 3533.
Montgomery Ward & Co.-Transfer Agents.-
It was recently announced that on and after March 1 1933, this company
will transfer its own stock at its New York office, 75 Varick'St., N. y.
City. Arrangements have been made with the Bankers Trust Co. to
continue to receive certificates presented for transfer, whereupon they will
issue their clean window receipt (except in cases where it is manifestly
impossible to issue a clean ticket) and forward the certificates to 75 Varick
March 11 1933
Street for transfer. Certificates issued upon transfer will, upon surrender
of the window ticket, be delivered at the Bankers Trust Co.
Month of February1933.
1932.
1931.
1930.
Sales
$10,113,826 $11,963,366 $15,244,975 $18.405,885
-V.136,9. 1387.
(Philip) Morris Consolidated, Inc.
-Accumulated Div.
-
The directors on March 7 declared the regular quarterly dividend of
% and a further dividend of 131% on account of accumulations
the 7% cum. class A stock, par $25. both payable April 1 to holders on
Of
record March 20. Following the above payment, accruals will amount
to 24 ji% or $6.12% per share.
-V. 138, p. 337.
Mortgage Guarantee Co. of Baltimore.-Receivership
Action Stayed.
Judge Stump in Circuit Court at Baltimore has signed an order staying
action on the receivership suit filed against the company, an affiliate
of the Title Guarantee & Trust Co.. which was closed and placed in the
hands of the State Bank Commissioner, Feb. 20, leaving the receivership
question to be heard in other proceedings instituted in Circuit Court
Prudential Securities Co.. a stockholder of the mortgage company. by the
Judge Stump pointed out that since the defendant company is connected
with the Title Guarantee & Trust Co.. which was placed in receivership
Circuit Court No. 2, the question should be heard in the same court. in
The New York "Times" March 9 stated: With holders of $16,664,080
in mortgage certificates out of a total of $22,000,000 in mortgages
ing to its plan of reorganization, the Mortgage Guarantee Co. has assentfiled a
demurrer and answer in court at Baltimore, asking dismissal of the suit
for appointment of a receiver for it filed recently by the Prudential Securities Co.
The plan to obtain extensions of mortgage maturities which could not
be paid when they became due has been assented to by a large majority
of holders of the certificates, including charitable and other institutions.
"It is only by the adoption and the effective carrying out of the plan
suggested, or some similar plan, that complete disaster to the respondent
and great financial loss to its investors can be avoided," the company
states in its answer.
-V.136, p. 1387.
Mortgage Insurance Corp., Los Angeles.-Deposit of
Bonds Urged.
Holders of more than 57% of the various series of certificates outstanding
have assented to the plan for amending the trust agreements, the company
announced, March 1. Prompt approval of other holders is necessary, the
company states, in order that the trustee shall have power to deal with
defaulted securities and protect the interests of certificate holders.
The plan provides for amendments in the trust agreements under which
the certificates were issued and changes the maturity date of all certificates
to July 1 1936.-V. 136. p. 856.
Motor Wheel Corp.(& Subs.).-Earnings.-
lendar YearsSale of wheels,stpg.. &c..
Int, earned and Income
from investments_ _ _ _
Total income
Sell. adv.. general, administrative exps.,&c_
Misc, losses. incl. mach.
sold and scrapped_
Depreciation
Pro
f ,r Fed. taxes_
Prov. for loss on slow
moving & obsolete inventories
Corp. proportion of net
loss and diva, paid of
Cleveland Weld. Co
1932.
$323,864
115,792
1929.
1930.
1931.
$951.948 $2.410,722 $5.482,422
194,299
179,680
$439,656 $1,092,984 $2.605.021
$5,662,101
980.704
495,267
141,036
1.006,819
988,283
1,049.355
526,897
49.633
470,354
110,000
175,598
530,984
426,500
75,000
75.436
131.578
Net income
loss$1,186,751 1os4572,311
Common diva., cash_
838.879
Common diva., stock_
$986,751 $3,479,664
'2,480,289 1,984,833
al 375,000
Deficit
$1.186.751 $1,411,190 $1,493,538 sur$119.831
Profit and loss surplus...
535,892 2.527.586 5.002,151
6,682,189
Shares of corn.
-outstanding (no par)
850.000
850.000
825,000
850,000
Earris.per share on corn_
Nil
Nil
$4.21
$1.16
a Representing 20% stock dividend of 137,500 shares distributed in 1929.
.
Summary of Surplus Account Dec. 311932.
Surplus Jan. 1 1932
$2.527.586
Net loss from operations (1932)
1,186.751
Provision for co 's portion of a reserve for contingencies provided in the balance sheet of Cleveland Welding Co. to reduce
the carrying value of plant assets
181,222
Provision made against the carrying value of securities to reduce
to indicated market value
498.720
Provision for contingencies
125,000
Surplus Dec. 31 1932
4535,891
x Divided as follows: Capital surplus. $2,422,435: profit and loss-deficit
$1.886,b03.
Comparative Balance Sheet Dec. 31.
1931.
1932.
1931.
1932.
Assets$
Liabilities$
$
$
Land, bides., ma:Common stock-- 8,500,000 8,500.0
00
chinery. &c_
76,272,960 6,693,226 Accounts payable_ 351,872
428,773
Cash
872,611 Notes payable__-_ 1,000,000
1,001,837
500,000
Invest. in sub. co.
Accrued taxes,Toynot consol
454,399
707,570 antes, ddi
107,011
86,257
Marketable mews. 534,586 1,122.830 Res. for employees
Customers' notes &
compens. plan
1,995
accts. receivable 586.119
534.034 Res. for contingenInventories
1,143.861 1,489.343
des,&c
300,454
135.904
Other assets
501.124
839.087 Profit and loss-- _ 535,891 2,527,586
Prepaid taxes, Ins.,
105,141
bond dint., &c.. 117,033
10.611.920 12.363,824 Total
Total
x Represented by 850.000 shares of no par value.
of $4,602,980.-V. 136. P• 1564•
10,611,920 12,363.824
y After depreciation
(G. C.) Murphy Co.-February Sales.
1933-Feb.--1932.
Increase. 1 1933-2 Mos.-1932.
Increase
$1,222.989 $1,221.402
$1.587$2,352,565 $2,332,195
$20,370
The company on March 1 1933 had in operation 177 stores as against
171 a year ago.
-V. 136. p. 1030.
(The F. E.) Myers & Bros. Co.
-Div. Action Deferred.
-
The directors last week voted to defer action until a later date on the
quarterly dividend ordinarily payable about March 31 on the no Par
common stock. A dividend of 25 cents per share was paid on Dec. 31
1932. compared with 35 cents per share on June 30 and Sept. 30 1932.
and 50 cents per share previously each quarter.
Offers to Exchange U. S. Bonds for Called Preferred Stock.
-
The company, in a letter to preferred holders, offers to reueem the
5,000 shares of 6% preferred stock by exchanging a similar amount of
U. S. Government 33% bonds, par for par.
The shares already have been called for redemption March 31 at 105
and diva. The company is making this offer because of the present unsettled financial conditions and difficulty of handling bank deposits.
Premium and accrued dividends to March 31 will be paid.-V. 136, p. 1564.
Nash Motors Co.
-Continues Operations.
-
The company is continuing to build cars on orders as has been its custom
for several months, according to C. H. Bliss, Vice-President in charge or
sales, who added that the bank holiday so far has failed to affect its operations. Shipments, however, are being held up pending the release of bank
funds
.-V. 136, p 856.
-Defers Dividend Action.
National Candy Co.
Due to the uncertainty as to the means by which dividends can be
disbursed to stockholders, the directors have decided to postpone the
declaration of the quarterly dividends ordinarily payable about April 1
on the no par common stock and on the 7% cum. 1st pref. and 7% cum.
2d pref. stocks, par $100, until the situation clarifies. On the latter two
issues regular quarterly distributions of $1.75 per share were made on
Jan. 1 1933. On the common stock the company paid quarterly dividends
of 25 cents per share from April 1 1932 to and incl. Jan. 1 1933, as against
50 cents Der share in preceiing quarters.
The directors will again meet on March 13.-y. 136, p. 1387.
Nati3nal Dairy Products Corp. .nnual Dividend Rate
Stork-to-S1.20-from--$2-Per Share-Reduced on the CommonZWv10.3.rector.-The directors on March 9 declared a quarterly
,..
dividend of 30e. per share on the common stock, no par
value, payable April 1 to holders of record March 17. Distributions of 50c. per share were made on this issue on Jan.
3 1933 and Oct. 1 1932, while from Jan. 2 1931 to and incl.
July 1 1932 quarterly payments of 65e. per share were made.
Henry W. Breyer, Jr., has been elected a director, sueneeding H. W. Breyer, Sr.
Income Account for Calendar Years (Incl. Subs.)
1932.
1929.
1931.
1930.
Net profit after deprec.,
int., Fed, taxes, subs.,
$12,537,380 $22,547,973 $26,254;326 $21,574,239
pref. divs., &c
Sits, corn. stk. outstand6,263,150
6,263.150 6,202.177 5,135,645
ing (no par)
$1.88
$4.10
$4.04
$3.47
Earnings per share
Cash on hand after payment of the Jan. 3 dividend was in excess of
times total current liabilities. Interest
$25,400,000 which was over 1H
requirements on the outstanding 534% gold debentures were earned over
43 times. There are outstanding $73,427,500 debentures
Thomas H. McInnerney, President. states: "It is not in the public
Interest that chaotic conditions which brought about the strike and the
dumping of milk should continue. The farmer must get a price that will
enable him to remain in business. Recent reports make it reasonable to
assume that we have seen the bottom and that from now on the trend of
-V. 135, p., 3367.
prices will be upward."
-Dividend Deferred.
National Investment Shares, Inc.
The directors recently decided to defer the semi-annual dividend due
Feb. 1 on the $1.25 cum. pref. stock, no par value. A distribution of
25 cents per share was made on this issue on Aug. 1 last, compared with
regular semi-annual dividends of 62H cents per share previously paid.
-V. 135, p. 642.
National Investors
Preferred Stock.
Corp. (N. Y.)-Changes Par of
The stockholders on March 9 approved a proposal changing the par valut
of the pref. stock to $1 from $100.-V. 136. p. 168.
-New British Subsidiary.
National Lead Co.
The British Titan Poducts Co. Ltd., has been organized by the Natonal
Lead Co. and the Imperial Chemical Industries Ltd., to market titanium
products in Great Britain. The Imperial Smelting Corp. and the Goodlass
Wall & Lead Industries, Ltd., both British concerns, are also associated
in the organization of the new company. It is contemplated that a plant
may be erected to manufacture titanium products in England but for the
present only a skeleton organization exists as yet, officers and directors
have not been named.
The distribution of titanium pigments in Great Britain is now handled
by an agency of the National Lead Co.'s subsidiaries in Norway, Germany.
-V. 136, p. 1387.
and France. ("Oil, Paint and Drug Reporter.")
...."
-National Steel Car Corp., Ltd.-Omits Dividend.
The directors have decided to omit the quarterly dividend usually
payable about April 1 on the capital stock, no par value. Distributions of
20 cents per share were made on July 2 and Oct. 1 1932 and Jan. 2 1933.
compared with payments of 50 cents per share each quarter from April 2
1929 to and incl. April 1 1932.-V. 135, p. 4569.
-Earnings.
National Sugar Refining Co. of N. J.
Calendar YearsGross earnings
Deprec., int. & taxes
1731
Financial Chronicle
Volume 136
-
1929.
1930.
1932.
1931.
82,789.324 $3,590,805 $3,948,110 $4,496,180
1,541.436
1.541,269
1.375,515
1,474,777
Net earn, after taxes__ $1,413,809 $2,116,028 $2,406,841 $2,954,744
1,200,000
Dividends paid
1.200,000
1.200,000
1,200.000
Balance, surplus
$213,809
$916.028 $1,206,941 $1,754,744
Shares of capital stock
outstanding (no par)-600,000
600.000
600.000
600.000
Earn. per sh.on cap.stk.
$2.35
$3.52
$4.01
$4.92
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1032.
1931.
Assets$
$
Liabilities$
z Property acct18,689,061 19,111,298 y Capitalstock- __15,000.000 15,000,000
Cash,&c
2,863,440 3,009,042 Funded debt
3,059,400 3,272,400
Market. secure_ _ _ 120,340
122.890 Accounts payable. 559,230 1,056,193
Accts. receivable 2,795,281 2,403,459 Accrued int., &c
17,841
19,089
Inventories
4,015,821 4,537,862 Federai taxes
217,617
294,317
miscell.Invest.- 2,306,839 2,264,470 Dividends payable 300,000
300,000
298,111
Deferred charges
160,557 Cont. reserve. &c.. 457,572
404,163
Earned surplus_ _11.477.226 11,263,418
31,088,893 31,609,580 Total
Total
31,088,893 31.609,580
x After depreciation. y Represented by 600.000 no par shares.
-V. 134.
p. 2164.
National Supply Co.-To Reduce Par Value, &c.
-
The stockholders will vote April 5 on a proposal to reduce the par value
of the common stock to $25 from $50 a share. This would create a capital
surplus of $9,564,775, against which it is proposed to charge down the
values at which plants are carried to a figure more in line with present conditions, to charge off the item of good-will, to write down securities and
make such other charges as might later be advisable.
The board also recommends that the company retire the 8,762 shares of
common stock owned by the latter.
-V. 135, p. 3367.
National Tea Co.-February Sales.
-1932.
1933-8 Inv.
Period End. Feb. 25- 1933-4 Wks.
-1932.
Consolidated sales
$1.650,848 $5,169,555 $9,578,973 $10,916,982
The number of stores in operation declined from 1497 to 1,385 as of Feb.
25 1933. as a result of the closing of stores which for various reasons had
-V. 136, P. 1565.
becbme unprofitable.
Neisner Brothers, Inc.-February Sales.
-Feb.
-1932.
1933
11911),258
831,410
$
-V. 136, P. 1031.
1933-2 Mos.-1932.
Decrease.
$78,8481$1.624,458 81.753.276
(J. J.) Newberry Co., Inc.-February Sales.-
1933-February-1932.
$1 978,952 82,003,099
136, p. 1213.
Decreased 1933-2 Mos.-1932.
$24,147153,861,061 $3,842,042
Decrease.
8128,818
Increase.
519,019
New York Indemnity Co.-Liquidation.
All persons having claims of any character against company are required
verified proof ofsuch claims. The last day for the filing of claims
to file duly
Is Sept. 18 1933. Blank for filing proof of claim will be furnished on request
by Superintendent of Insurance of the State of New York.
New York Shipbuilding Corp.-Annual Report.
W. M. Flook, Chairman of the board, says in part:
During the year company completed and delivered the steamship Manhattan (built of the U. S. Lines) and the heavy cruiser Indianapolis (built
for the U. S. Government). Company now has under construction the
steamship Washington (being built for the U. S. Lines), delivery of which
is scheduled for May 1 1933, and the heavy cruiser Tuscaloosa (being
built for U. S. Government), delivery of which is scheduled for March
1934.
As of Dec. 31 1932 company had $8,510.165 of uncompleted work on
contracts in process.
Stockholders March 29 1932 approved retirement of 8.490 shares of pref.
stock, 50.756 shares of partic. stock, and 27,330 shares of founders stock,
and corresponding reduction in capital. At same time stockholders approved application of $3,266,312 of surplus arising through retirement of
capital stock, previous capital surplus and surplus from revaluation of
property to a write-down of machinery and equipment values.
Stockholders on Sept. 15 1932 approved changing outstanding 344.500
shares (no par) partic. stock and 185,500 shares (no par) founders stock
into same number of shares of the par value of $1 each, and the sum of
$11,605,298, the amount by which the capital was reduced, was transferred from capital account to capital surplus. From this capital surplus,
subsequently, based on an appraisal of land and buildings, an allocation
was made of capital surplus to write down the land values of company's
Plant by $4,623,643, and the building values by $2,032,675.
Consolidated Income Account for Calendar Years (Incl. Sub. Co.)
1929.
1930.
1931.
1932.
Net inc. after all chgs.
$61.342
$610.159
'
Including depreciation $1,422,871 $1,450.977
137.118
191,542
209.376
253,981
Interest, discount. &c__
Total income
$1,676,853 $1.660,352
Bond int., discount, &c214.879
225.760
Federal taxes
Adj. compensation to executives & employees..
122.539
103,957
Exps. incident to former
11.244
electric business
3252.884
251,356
3747,277
334,840
10.000
31,328,191 31.330.635
Net income
Non-recur. net oper. loss
of elec. div. for period
125.476
Jan. 1 '31 to July 1531
31,528
8402,436
$1,528
$402.436
4,059.313
2.751,531
1,650,851
Dr.33.305
Consol. net prof. appl.
to parent company- $1,328,191 $1,205,158
Consol. surp. Dec. 31
(incl. sur.from apprec.
of prop. & cap.surp.)- 4,243.238 3,799,979
Profit on sale of sub_
Adjustments (net)
1,379.546
6468,487
Surplus credit
Capital surplus from reduction of capital_ _ -- 11.605,299
317,645,215 36,384,684 $4,060.841 $4,771,513
Total
a577,500
210,000
182,280
Div. on pref. stock
149,590
50.000
Prov, of res. for coming..
34,701
862
Fed AState tax, prior yr.
Prov. for loss on obsol.
100,000
& unused equipment_
Adjust, of book value of
machinery & equip.... 3,266,312
Adjust. of land & blcigs.
book value
6,656,318
Loss through sale of Elec1,959.166
trical Division
Consol. surp. Dec. 31
(incl. surplus from apprec. & cap. surp.). $7,572,995 $4,243,238 33,799.979 34.659,312
a Includes 14% paid to cover accumulations besides regular dividends of
7%. Is Excess over cost of shares of capital allocated to preferred. participating and founders' capital stock acquired during year and retired or
held in treasury.
Consolidated Balance Sheet Dec. 31 (Including Sub. Co.)
1931.
1932.
1932,
1931.
$
Liabilities$
Assets$
$
aPlants and prop_ 6,933,606 17,171,541 Preferred stock___ 2.114,000 2,216,000
Particip. & found1
1
Good-will & patsd530,0001312,637,795
3,028,912 3,761,959 era' stock
Cash
4,071,500 4,322,700
Matketable securs. 2,493,937 2,493,938 Funded debt
811,385
26,583 Notes & accts.pay. 434,817
Accts.& notes rec_ e292,174
11,768
23,536
Contrac.In process 747,778 1,147,607 c Other notes pay_
38,780
37,100
payable..__
589,007
686,650 Divs.
Inventories
325,660 Accrued pay-roll,
Investments
275,660
287.492
1,126,202 1,117,303 interest, &c____ 212.878
Other assets
24,912 Adv.pay.on contr.. 514,930 1,093,880
Deterred debits
60,527
47.816 1,081,347
Raa've for coating_
7,572,995 4,243,238
Surplus
15,547,805 26,756,155
Total
15,547,805 26,756,155 Total
a After depreciation. b Represented by 360,756 no par shares of participating stock and 186,000 no par shares of founders' stock. c Due
after Jan. 1 of following year. d Represented by 344.560 31 par participating shares and 185,500 $1 par founders' shares. e Accounts receivable
.
-V. 136, p. 1031.
only.
-Income Account.
North American Aviation, Inc.
[Including Wholly-Owned Subsidiaries]
1932.
1931.
Calendar Years$1.381.496 $2,185.199
xGross income from operation
1,085,440
1,124.177
Selling & general expenses
462,068
450.280
Depreciation
272,939
Amortization
Operating loss
Other income
Total income
Interest
Administration salaries and expenses
Miscellaneous deductions
Federal taxes, &c
$166.012prof$337,803
263,304 . 306.056
$97,292
5,035
298,490
25.423
11.967
$643.859
10.802
286,614
9.407
35,218
Net loss
8243.573 surS301.818
x Includes income from patent royalties of $142,589 in 1932 and $122,883
in 1931.
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
Assets
$
mammies
$
Fixed assets
83,018,533 3,028,949 bCapital stock___ 9,983,890 9.983,890
Patents
1
Due bankers
20,147
15,472
Goodwill
4,677,914 3
500.870
:610,506 Accounts payable_ 238,248
Developments._
92,990
Accrued royalties.
Cash
1,874,893
481,707
158,938
171,593
wages. &C
U.S. Treas. bills.
1,001.706 Deposits on sales
Trade notes, accts.
7,312
contracts_ _ _ _
612,503
& accepts. rec._ 838,423 1,015,931 Deferred liabilities
80,476
Sundry accts. rec.,
Prov, for instalrn,
accr. int., &c
114,552
53,927 service & guarInventories, &c
1,972,347 3,140,559 anteed products
51,209
22,764
Listed sec. of avia135,262
54,500
Deferred income
tion cos. (cost). 2,346,141 2,566,099 Res, for canting
230,136
395,705
Invest. in InterCapital surplus.__ 2,466,415 2,466,415
contin't Aviation 775,445
671,164 Earned surplus. 2,896,451 2,899,594
Oth.stka, bds.,&o 355,994
263,659
Due from officers
& employees
84,879
27,495
Deferred charges.
96,280
116,558
Total
16,188,008 17,203,782 Total
16,188,008 17,203,782
a After depreciation of 31.496,647. b Represented by 1.996,778 shares
of $5 par value, exclusive of 122.181 shares owned by a subsidiary.
V. 136, p. 1213.
1732
Financial Chronicle
New York Trap Rock Corp.-Earnings.
-
Calendar YearsNet operating profit_ -Other income
1932.
1930.
1931.
1929.
$860,948 32,099,470 32,884.294 $3,041.954
69.241
60,264
64,198
Gross income
Interest charges
Prov.for deprec.& deplProv.for doubtful accts.
Prov.for Fed.&State tax.
Other deductions
Portion applic. to minority stockholders
$860,948 32,163.668 $2,944.558 $3,111,196
393,705
363.615
423,002
448.272
547,732
532.328
421.661
509,495
66.406
30.496
39.375
31,499
81.197
297,992
215.287
239.761
9,105
17,704
492
35.935
Cr.753
Net income
loss$190,951
Previous surplus
6,254.475
Profit on bonds and debentures retired
149,132
Refund of Fed, inc. tax,
prior years
12.972
Credit adjustments
60.075
11.269
7,541
6,177
$931.969 $1,620,451 $1.989,605
5,432,762 3,897.657 2,838,141
97.668
Total surplus
$6,285.703 36.364.731 35,615.776 34,827.746
Dividends on preferred..
72,520
105,566
140,000
140.000
Discount on funded debt
697,500
Prov.for doubtful accts638,244
Deficit of Kohl Realty &
Development Corp
2,670
Divs, on common stock_
540.000
Loss on plant
245.909
Adjustments
4.179
13.014
4,690
Adj. work compensation
30.000
Profit & loss surplus-- $4,874.771 $6,254.475 $5,432.762 33,897.657
Shs.com.stk.out.(no par)
180.000
180.000
180.000
180.000
Earnings per share
Nil
$10.28
$4.59
$8.22
Comparative Consolidated Balance Sheet.
AssetsDec. 31 '32. Mar. 31 '32. Dec. 31 '30.
Cash
3307,830
$841,354 $1.138.762
Notes and accounts receivable
a1,054.172
1,614,343
6864,950
Marketable securities
3,432
13,335
Special dep., def. accts. receiv., &c
.223.933
155.813
Crushed stone and lime dust
96,759
260,767
175.252
Materials, supplies and repair parts
479,425
428,744
493,686
Quarrying & other oper. exps. prelim.
to production of stone for market.309.936
Trade notes rec., not due within 1 yr.
23,000
Deposit in closed bank
7.668
Cash in sinking funds
45,782
Miscellaneous investments
44,117
Bonds purchased for sinking fund
100.040
Securities depos. with Indus. Comm.,
N. Y.State Dept. of Labor
213.933
Preferred treasury stock (at cost).... f1.006.550
806,550
Property, plant and equipment
19.672.123 19,501.126 19.222.150
Deferred debit items
43.805
103.134
25.183
Total
$23,091,258 $23,347,876 $22,838,525
Liabilities
Notes payable
$381,584
1
Accounts payable
} 278,193
160.284
$501,224
Accrued Interest payable
payble-t
1600.000118.198
Other accrued & misc. accts.
40,126
Federal Income taxes
28.748
244,207
46.171
Funded debt
5,332.500
5,810,500 6,210,500
Reserves
3,265.106
2,146,351
2,826.529
Equity minority stockholders of Carbonate of Lime Corp
34.095
97.220
102,351
c Preferred stock
2.000.000 2,000.000
2,000.000
d Common stock
5.875,925
5.875.925
5,875.925
Capital surplus
1.020.336
322,836
330,336
Profit and loss surplus
4,874,771
5,432,762
5,444.957
Total
323,091,258 $23,347.876 322,838.525
a After reserves of 3859.308. 12 After reserves of $333.359. c Represented by 20,000 no par shares. d Represented by 180,000 no par shares.
• Special deposits and deferred notes receivable only. f 10.990 shares
Dec. 31 1932 and 8,490 shares March 31 1932.-V. 136, p. 1387.
....."•••- North American Creameries,Inc.
-Dividend Deferred.
The directors have decided to defer the quarterly dividend due April 1 on
the $1.40 cum. class A common stock, no par value. The last reguar
3 •terly payment of 35 cents per share was made on this issue on Jan. 1
.11
3
mIn a statement to the stockholders, the company intimated that
the
above omission was needed as the management was unwilling to pay
dividends out of surplus which would have been necessary thls year due to
reduced earnings.
-V. 135, p. 2184.
Norwich Union Indemnity Co.-Bal. Sheet Dec.31 1932.
Assets
1 Liabilities
U.S. Government bonds
$209,236 Reserve for claims
$1,581,252
State. county & music, bonds 294.598 I Reserve for unearned premiums 1,202,384
Railroad bonds
1,877.297 Reserve for commissions
161.073
Public utility bonds
1,050,768 Reserve for taxes
60.131
Miscellaneous bonds
126.099 Reserve for sundry bills
15.437
Railroad preferred stocks
36.230 Contingency reserve
508,264
Public utility pref. stocks__ _ _
72.325 Capital
500.000
Miscellaneous stocks
221.200 Surplus
480,800
Cash
105,398
Premiums in course of collect'n 657,594
Interest due & accr. on bonds
45.412
Other assets
3.164
Total
$4,499,323
Total
$4,499,323
Occidental Insurance Co -Balance Sheet Dec. 31 1932.
Assets
Liabilities
Government bonds
$635,395 Losses In process of adjust
992.958
State and municipal bonds.... 351,216 Reserve for unearned prom... 767.516
Miscellaneous bonds
1.951,901 All other claims and demands_
21.173
Stocks
472.026 Contingency reserve
144,687
Cash
167.121 Cash capital
1.000,000
Prem. In course of collection
158,801 Surplus over capital and all
Accrued interest
38.640 lIabilities
1,761,912
Another assets
3,146
Total
-V.135.p.2842.
$3,778,245
Total
of those receipts to profit and loss account and crediting that amount
contra to the cost of Crow's Nest Pass Coal Co.'s stock. The receipts
from Crow's Nest Pass Coal Co.. Ltd., in 1932 have been derived from the
coal depletion and depreciation reserves of that company to the extent
of 95.13% and have been directly credited to the cost of the coal company's stock, as appears in balance sheet.
Comparative Balance Sheet Dec. 31.
Assets1932,
1931.
1931.
Liabilitin1932.
Cost of charter.-- $85,048
$85,048 Capital stock
$3,954,000 $3,954,000
Cash
213,101 Divs. unclaimed &
157,370
C. B.& Q.stock. 2,858,810 2,858.810 unpaid
1,8161,938
Crow's Nest Pass
Balance, surplus... 2,786,898 3,112,700
Coal Co.stock__ 3,814,609 3,808,945
Fractional scrip-- •
97
97
Gt. Northern El.
Co. bonds
24,969
24,989
U. S. bonds
75.734
Suspense acct.,&c.
1,932
1,812
Total
$6,742,834 37,068.517
Total
$6,742,834 $7,068,517
Note.
-The company on Dec. 31 1932 owned of C. B. & Q. RR. stock
23,063 shares of $100 each, shown in balance sheet as $2,858,810, and
of Crow's Nest Pass Coal Co. stock 28,557 sham of $100 each,$3,808,945,
less capital distributions of $194.336. 53.614,609.-V. 135, p. 4045.
Ohio Oil Co.-Earnings.
Calendar YearsNet sales
Raw material cost
Operating expense
Taxes
General expense
Depletion
Depreciation
1932.
1931.
$50.245.681 $49,014,866
16.778,957 23,008,598
13,738,479 14,180,917
1,664,306
1,799,348
3.443,985 4,191,892
1.257,794
1,533.119
5,529,3364,560,293
Profit on sales
Other income credits
$8.801,866 df$1,228,344
146,696
2,540.274
Total income
Interest
Cancelled unoperated leases
Non-productive wells
Taxes
Inventory losses
Retirement losses
Dad debts.
General expense
Miscellaneous
$8,948,562 $1,311,930
10.029
14.881
970,664 3,670.126
449,591
1,529.278
26,064
172,512'
57.765
574.447
164,332
230.773
63.653
7.612
45.687
19,525
192.834
Net Income
Inventory adjustment
Fixed assets adjustment
Non'subsidiary stocks
$7,242,981d35,182,260,
4,151,877
11,450,068
704.557
Net income after adjustments
Preferred dividends
Common dividends
Northern Securities Co.
-Earnings.
1932.
$80.764
3,491
7,356
12.506
1931.
$321.298
17.449
8.159
136
1930.
3479.327
20,994
8,847
715
1929.
3406.808
22.770
8.109
1.352
Net income
Dividends (9%)
357.411
296.543
3295.554
355,851
3448.770
355.851
$374.576
355.851
Balance,surplus
def$239,132 def$60,297
$92,919
$18,725
Earns, per sh. on 39.540
shs.stock (par $100)-$7.47
$1.45
$11.35
$9.47
Total receipts in 1932 include diva. from C. B. & Q. RR., $69,189;
diva, from Crow's Nest Coal Co.. Ltd., $5.563, and int. $6,012.
E. T. Nichols. President, states:
At the time the January 1932 dividend of Northern Securities Co. was
paid and its report for 1931 issued, company had not been informed that
the distributions received from Crow's Nest Pass Coal Co., Ltd., in 1931
had in their entirety been paid from the coal depletion and depreciation
reserves (capital distribution)
-the entire balance of free surplus to Dce.31
1931 having been exhausted. Accordingly these receipts were shown in
Income account. This has since been corrected by charging the amount
$7,242,981df$21,488,763
3.456,099
3,404,577
1,668,953
3,296,427
Surplus
$541,977df$26,613.815
Earnings per share on 6,648.052 (no par) abs. coin
def$1.32
$0.59
Consolidated Surplus Account Dec. 31 1932.
-Surplus Dec. 31 1931
(earned), $17.046,670; adjustments, $22,968; total, $17,023,702; income
during year, $7.242,981; total, $24,266,684; common dividends. $3,296,427:
preferred dividends,$3,404,577;surplus Dec.31 1932(earned),$17,565,679.
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1931.
1932.
Assets
Cash
1,055.506 1,830,998 Accts. payable__ 1,879.966 1,823.588
Accts. receivable 3,813.509 4,114.101 Tax liability....1,142,323 1,316,040
Notes receivable
760,063 1,303,244 Deferred credits 2,281,292 1,588.076
Crude oil & reMinority int. In
fined products 23,129,554 19,696,062 subsidiaries
131,865
213,220
Mall & supplies 2,206,431 2,925,860 Preferred stock_ 58,079,600 58,066,800
Bonds
9,785,660 10,488,938 zCommon stock.100,000,000 100,000,000
Stocks(non-sub.
Earned surplus. 17,565,679 17,046,670
7,451,520 7,626,114
cos.)
xTreasury stock
3,794.887 3,294,138
(at cost)
YFixed assets._ _128,239,645 127,421,953
Deferred charges
843,750 1,350,985
Total
181,080,526 180,052,392
Total
181,080,526 180,052,392
x Represented by 84,945 (86,141 n 1931) common shares and 14,515
(6.990 in 1931) preferred shares. y After depreciation and depletion of
$165,385,204 in 1932 and $161,102,409 in 1931. z Represented by 6,648.052 no par shares.
-V. 136, p. 1032.
Ohmer Fare Register Co., Dayton, O.
-Refunding Plan
Declared Effective.
The company on Feb. 27 declared effective the refunding plan in connection with its $1,500,000 of notes maturing March 11933. Of the original
principal amount, 3170.000 has been retired by the company, and substantially all of the $1,330,000 of remaining notes have been or will be
exchanged for an equal amount of new five-year bonds dated Jan. 11933.
Giving effect to this refunding operation, the company's condensed
balance sheet as of the close of business Dec. 311932. reflects current assets
of $1,763,293 compared with current liabilities of 340.477.-V. 134, P. 336-
Oppenheim, Collins & Co., Inc.-Earnings.
For income statement for six months ended Jan. 31 a re "Earning
Department" on a preceding page.
-V. 136, p. 1566.
Pacific Mutual Life Insurance Co. of California.
Balance Sheet Dec. 311932.Assets
$89,985,312
Loans on seal estate
Loans on approved collateral_ 6,508,240
40,942,801
Loans to policyholders
Bonds
34,907,806
Preferred stosks
2.258,553
Real estate
9,955,847
Interest due sad accrued
2.698.9.8
Outstanding & deferred prem. 4361,280
1,793,152
Cash
Other assets
403.916
$3,778,245
Calendar YearsTotal receipts
Taxes
Administrative expenses
Interest and exchange
March 11 1933
Total
-V. 134.
8193,913,904
Liabilities
Reserves on policies
$182,527,490
Reserves for claims approved,
Payable in instalments__ 9,216.350
Claims awaiting proofs
2,033,780
Prem.& Int. paid In advance 1,283,060
Reserved for taxes pay. 1933- 1,075.080
All other liabilities
653,513
Capital stock
5,082,000
Surplus set aside for future
dividends to policyholders_ 1,509,289
Surplus unassigned
8,783,483
Reserve for contingencies-- 1,750,000
Total
$193,913,904
p. 4507.
Paramount Publix Corp.
-Listing of Ns.of Deposit.
-
The New York Stock Exchange has authorized the listing of certificates
of deposit representing $11,892.000 Paramount Famous Lasky Corp. 20
year 6% sinking fund gold bonds. due Dec. 1 1947. on official notice of
issuance and of certificates of deposit representing $13,151.000 Paramount
Publix Corp. 20-year 53.f% sinking fund gold bonds, due Aug. 1 1950, on
official notice of issuance.
Lessors Protect Interest.
A National Landlords' Protective Committee has been appointed to
protect the interests of several hundred landlords under the receivership
of the Corporation. Judge Samuel Seabury has been appointed counsel to
represent the group in the litigation proceedings and the investigation of
the financial structure of the corporation and its subsidiaries.
Members of the executive board of the national committee are Bernard
Rogers, New York; Gustave Frankel, Chicago; H. W. Holland, St. Petersburg, Fla.; A. B. Jones, New York, and Clifford P. Zieger, Hartford, Conn,
Reynold Goodman is executive secretary. The main office of the national
committee is at 70 Pine Street.
The property owners holding the various Paramount Publix leases are
taking the position that in equity they are equal if not prior to any claim
Financial Chronicle
Volume 136
of bondholders and stockholders. As the various subsidiaries regard the
lease itself as an asset in the incorporation of affiliate companies, the landlords consider that their rights should be upheld on the same basis and in
the same good faith in which these properties were leased to the manage-V. 136. p. 1566.
ment of the affected companies.
-Earnings.
(David) Pender Grocery Co.
1929.
1932.
1931.
1930.
Calendar Years$11,546,151 $14,378,103 $15,975,117 $15,920,689
Netsales
Net profit before Federal
147,380
48,868
338,015
7,899
and State taxes
122,822
40,741
287,715
5,015
Net after taxes
y105,725
105.725
105,725
x235.761
Class A dividends
$51,954
Balance, surplus
def$100,710
$17.097 def$64,984
Shares class B stock out65,070
standing (no par)
65,070
65,070
65,070
Nil
Nil
Earnings per share
$2.79
$0.26
x Includes class B dividends. y Before deducting dividends paid on
stock held in treasury.
Comparative Balance Sheet.
Dec.31 '32. Jan. 2'32.
MabilltiosDec,31'32. Jan. 2'32.
Assets-.
y Land, buildings.
x Class A and B
.
equipment. das_ 5685.935 $728.891
stocks
$1,488,673 $1,517,065
408,792
390,800 Accounts payable_ 306,618
415.709
Cash
127,544
118,375 Reserve for FedNotes & accts. reo_
23.531
8.362
era! and State
Inv. in other cos_ 24,557
1,059,379 1,362,757
2,884
Inventories
tax
14,917
11,067 Reserve for dbl.Cash surrender val.
8.810
8.810
30,289
23,804
dends A
Insurance fund_ -23.865
30,290
Fire insur. fund
Deposited with
580.212
734,381
9,597
12,505 Surplus
bankrupt banks_
57,492
67,662
Deferred charges-1
1
Good-will
Total
32,417.486 $2,724,287
$2,417,486 82,724,287
Total
x Represented by 28,591 shares of class A no par pref. stock and 65,070
shares class B no par common stock. y After deducting $961,067 reserve
for depreciation and amortization of $1,082,101 in 1932 (1931, $961,067).
-V. 134, p. 1972.
-To Reduce Capitalization.C.) Penney Co. Inc.
he company has notilledthe New York Stock Exchange that it proposes
to reduce its authorized classified common stock by $5,000,000. All of
this stock was retired by conversion or retirement on Dec. 31 1931, in
accordance with the provisions of the company's certificate of incorporation.
As of Dec. 31 last the company had outstanding 2,468.984 shares of no
par common stock and 319.921,500 of 6% cum. pref. stock. Since that
time Some 89.600,000 of the preferred has been purchased for retirement.
Gross Sales for Month and Two Months Ended Feb. 28.
Decrease.
Decreased 1933-2 Mos.-1932.
-Month-1932.
1933
$8,459,751 89,589.818 31.130.0671617,149,128 318,875.396 61,726,268
During February 1933 the company had in operation 1,474 tores as
-V. 136. p. 1566.
against 1,460 a year previous.
Pittsburgh Coal Co.(& Subs.).-Earnings.
Calendar YearsOper. income, &c
Cost of sales & exp
1929.
1931.
1930.
1932.
$24,729,143 $31,653,323 $41,511,415 845,403,168
22.958,870 29,074,074 37,563,726 40,798,867
Balance
Other income
81,770.273
496.683
$2,579,249 $3,947,689
598,496
492.360
34.604,301
786.966
Total income
82.266.956 $3,071,609 $4,546.185 $5,391.267
35,761
50,357
149.763
107,181
Prov. for bad debts_
61.125
Foreign exchange loss.. _ _
47,302
Cr18,497
Cr8,203
Cr9,484
32.937
Loss on sale of cap. assets
1.748,704
1,451,260
1.528.021
1.724.655
Interest
2,076,624
Depreciation
2,492,044
2,329.824
2.450.465
1..471.960
1,437,485
Depletion
1.060,506
1,165,841
Dr56,288
Dr95,598
Min.interest in subs....
Cr273 - Cr15.122
$2.882.579 $2,300.418 $1.078,696 prof$15,592
6,450,285
2,102,178
def5,936.578 def1,508,818
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
LiabilitiesAssei3$
:Coal lands_ _ _ 99,726.416 102.070.866 zPreferred stock 35.000,000 35.000.000
yPlant & equip- 25,308.682 27,069,180 Common stock_ 40,000.000 40.000.000
Inv. in stocks &
Bonds
23,894.500 26,157.500
250.000
250,000
bonds
5,295,593 5.801,496 Insurance fund
1,194.797
Mortgage rec._
832,668
832.186 Min. int. In subs 1,179,338
Workmen's comCo.'s stock for
597.792
658.531
employees- ....
413,520
397,487
pensation adj.
500.000
500.000
Miscell.invest
283,012
299,697 Contingent fund
183,346
165,641
Sinking fund a:
Miscell. nab_ _
reinv.fund__ _ 3,314,930 3,791,247 Accr.int.& taxes 1,240,609 1,075,639
Pension fund Inv
211,004
211.004 Workmen's corn781.581
765.709
Deferred charges
pen. claims850.392
943.465
148,390
134.098
Market secur_ _
3.571.947 3.699.258 Pension fund__ _
510.158 , 1,063.717
Inventory
5,490,476
7,341.859 Bills payable...
1,273,213
Accta.& bills reo 4,308,577 5,042.233 Accts. payable_ 1,096.010
Cash
3,121.907 2.607,787 Paid-In surplus_ 53.329,848 53.329.848
5,936,578
1,508.818
Deficit
Net loss
Earned surplus
Total
152,727,126 160,107,747
152,727,128 160,107,747
Total
a After depletion. •y After depreciation of $18,947,360 in 1932 and
$17,344,005 in 1931. z Dividends have accumulated on pref. stock from
Jan. 25 1926.-V. 135, D. 4045.
Pressed Steel Car Co.
-Balance Sheet Dec. 31.
(Including Constituent, Subsidiary ()weed or Controlled Companies.]
1932.
1932.
1931.
1931.
Assets$
Liabilities$
$
$
:Plant,equipment,
yCommon stock--13,549,500 13,549,500
&o
37.776,786 37,911,234 Preferred stock--13.601,500 13,611,500
Securities & stocks
537,000
1211,000
Mortgages
owned
3,003,337 2,902,343 Stock of sub.Co...
23,500
23,500
Notes & accts. roc_
5% bonds 1933-- 3,072,000 4,956,500
222,975 15
from ellbaldiar108 131.816
-year 5% cony.
U. S. Treas. bonds
387,500
954,250
gold debentures_ 387,500
952,436 1.973,211 Bankers accept-- 117.989
Cash
187.366
Notes receivable-. 600,469 1,244,762 Ill. Car & Eq. bds_
411,000
Unmat. accts. rec. 157,506
189,007 Accounts payable_ 666.157
995.683
Accts.receivable- 535,852
797,163 Reserve for conting 2,500.000
Inventories
1,061,420 1,337,148 Surplus dc profits- 9,904.096 13.438.857
153,111
Prepaid expenses
84,518
44,359,212 47,685,207
44,359,212 47,885,207
Total
Total
x After depreciation charged off at close of year of $158.511 in 1932.
(1931, 51,413,097). y Represented by 395,727 shares (no par value).
Our usual comparative income account for the year ended Dec. 31 1932
was published in V. 136, v. 859.
Deposit Committee.
Charles Hayden of Hayden, Stone & Co. is chairman of a deposit committee which has been formed to represent the holders of the 10-year 5%
convertible gold bonds due Jan. 1 1933. The other members of the committee are 0. S. Newhall, Vice-Pros, of Pennsylvania Co. for Insurances on
Lives and Granting Annuities and Robert C. Schaffner of A. G. Becker
& Co. Raymond B. Hindle, 25 Broad St., is Secretary. The committee
requests early deposit of bonds with the New York Trust Co..100 Broadway,
depositary, in order that, without delay, there may be united and effective
representation of the interests of the bondholders. Chadbourne, Stanchfield
-V.136, p. 859.
&T.,evy are counsel for the committee.
Radio-Keith-Orpheum
Theatres in New Jersey.
Corp.-Receiver for R.
-K.-0.
Federal Judge Guy L. Fake appointed, March 1, Samue Kaufman,
Newark, and the Irving Trust Co.a New York, ancillery receivers in New
Jersey for the RICO. Theatres Operating Corp., on application of Jack
Silberman, a New York bondholders, and o ithe Franklin Investment Co.
1733
and Brattner and Pollock owners of New Jersey theatres leased to R110.
V. 136. p. 1390.
Rustless Iron Corp.-Wins Suit.
Denying infringements of certain patents in the stainless steel industry,
Judge William C. Coleman in the United States District Court at Baltimore
on March 2, handed down decisions favoring the company, a Baltimore
concern. Suit against the company was brought in 1929 by Electro Metal-owned subsidiary of Union Carbide & Carbon Corp.,
lurgical Co., a wholly
and the American Stainless Steel Co. of Pittsburgh.
Infringements of the Clement patent, a product claim, and of the Hamilton-Evans patent, a process claim, was charged by the plaintiffs.
-Earns.
-(Joseph T.) Ryerson & Son,Inc.(& Subs.).
Calendar YearsNet operating Profit....
Inc. from invest. securTotal income
Interest on 5% deben
Prov. for Fed. inc. tax
Prov. for deprec
Minority int. in ReedSmith Co. net income-
1929.
1930.
1931.
1932.
$7.211 loss$77.677 51.319.132 $3.010.113
167.659
113,611
149.135
142,984
5150.195
177,832
227,851
$35,934 $1,468.267 63.177.772
235.356
192,858
216.756
116,233
291.433
312,118
336,125
267,529
Dr4.665
Consolidated net income for year
1os4255.488 loss$424,453
Previous earned surplus_
1,774,457
691.279
Surplus adjustments_ _ _ Dr12,644
18,725
Total surplus
Dividends paid
6.773
$827.826 62,308.085
227.798
1.743,996
8.114
2,635
$423.147 $1,331,279 $2,574,457 52,543.996
800.000
800,000
640.000
Consol. earned surplus $423.11
7
$691,279 51.774,457 $1,743,996
Earns. per sh. on 400,000
Nil
Nil
shs.com.stock (no par)
$2.07
$5.77
Consolidated Surplus Accounts Dec. 31 1932.
Capital surplus, representing net undistributed earned surplus
of business at date of incorporation of present company,
,
Oct. 3 0 1928:
82,320,129
Dec. 31 1931
15.000
Goodwill acquired during the year
45.641
Provision for Federal income tax claim of predecessor company
$2,259.488
Balance
691,279
Earned surplus Dec. 31 1931
Surplus adjustments
-Reserved for "other accounts
$150.009
receivable"
28,753
Reserved for prior years' Federal income tax
178,752
Total
Discount on company's own debentures reacquired
Current year
•
Prior years
Sundry adjustments
Balance
Consolidated net loss for year
Balance earned surplus
Consolidated surplus, Dec. 31 1932
Comparative Balance Sheet Dec. 31.
1932.
1932.
1931.
Assets$
$
y Capital stook-- 8,000,000
Cash & marketable
-year 5% spiking
securities
4,949,994 4,941,800 15
3,284.000
fund debs
Notes & accts. rec. 1,138,786 1,930,431
Inventories
3,369.194 3,842,687 Reserves......_..104,404
Other sects. rec.-- 145,378
48.556 Accounts payable- 410,690
2,259.488
5
-year debs
912,500 Capital surplus
Earned surplus... 423,148
Company's own stk
acquired for resale to employees 168,054
120,900
Tax warrants
91,447
Other investments
51,991
65,490
Land
1.545,965 1,575.914
a Bldgs. & equip
2,984,574 3,200.066
Patents & good-will
1
1
Deferred charges
27,677
16,351
$512.527
107.898
54.602
3.608
5678.635
255.488
$423.14
2,682,634
1931.
8,000,000
4.700.000
70.668
883,948
2,320.129
691,279
Total14,4el735 18,866,022
Total
14,461,735 16.666.022
x After deducting reserves for depreciation of $3.797.682 in 1932 and
-V. 136.
$3 1217082 in 1931. y Represented by 400,000 shares (no par).
p,4 .
.8 8
-Protective
Saenger Realty Corp., Inc., New Orleans.
Committee.
A protective committee has been formed for the holders of the 1st mtge.
guaranteed 634% serial gold bonds (Saenger Theatre, Mobile) consisting
of E. J. Cairo, Planter, Edgard. La.; James J. Manson, Manson Bros.;
Robert Moore Jr., Moore-Hyams & Co., Inc.', E. B. Peebles, Secretary.
First Securities Co., Mobile, Ala. and A. 1'. Smith Jr. Sec.-Treas.,
Hibernia Securities Co., Inc. Council are McCloskey & Benedict, New
Orleans, Thos, B. Kennair, Sec., P. 0. Box 1540. New Orleans, La.
Saenger Theatres. Inc.. guarantors of the bonds, went into receivership
Jan. 27 1933, and E. V. Richards was appointed receiver by the U. S.
District Court at New Orleans.
Holders of the bonds are urged promptly to deposit their bonds with
Hibernia Bank & Trust Co., New Orleans, La., as depositary. The bonds
deposited must have all coupons maturing on and after Feb. 1 1933,
attached -V. 123, p. 1259.
-Protective ComSaenger Theatres, Inc., New Orleans.
mittee.In view of the appointment on Jan. 27, in the U. S. District Court at
Louisiana, of E. V. Richards as receiver the holders of the 1st mtge. &
collateral trust sinking fund 6,4% gold bonds series A and B are asked to
unite for their protection. Holders of the bonds are urged promptly to
deposit their bonds with Hibernia Bank & Trust Co., New Orleans, Ls., as
depositary. The bonds deposited must carry all coupons maturing on and
after April 1 1933, on the series A bonds and Feb. 1 1933, on the series B
bonds.
The committee consists of C.P. Ellis Jr., C.P.Ellis & Co.; T.J. Foibleman, Investments; C. E. Meriwether, President American Turpentine and
Tar Co., Ltd.; Geo. H. Nusloch, Vice-President, Hibernia Securities Co.,
Inc.; Jos. Reuther, Jos. Reuther Bakery; Ernest Villere, St. Denis J.
Villere & Co. and H. El Vincent. McCloskey & Benedict of New Orleans
are Counsel and Thos. B. Kennair is Secretary, (P. 0. Box 1540) New
Orleans.
-V. 136, p. 860.
St. John Power & Paper Co., Ltd., Montreal.
-Bonds
Authorized-Directorate Increased.
The shareholders at a special meeting held last month, approved a
resolution providing for an increase in the board of directors from five to
eight members.
A voting trust agreement was also approved, whereby the bond and
debenture holders have the right to name five out of seven of the directors,
so long as debenture interest remains unpaid and while there may be prior
lien bonds.
There was also authorized an issue of $1,000,000 prior lien bonds, to be
Issued and used at the discretion of the new board of directors.
Directors elected were: A. S. McNichols. President; D. H. McDougall,
chairman of the board; H. H. Horsfall, Vice-President; J. Stadler, Col.
R. F. Massie, J. I. Rankin, director St. Lawrence Corp.; A. Campbell.
The first five directors are nominees of bond and debenture holders and
the last two are nominees of the St. Lawrence Corp.. Ltd.
St.Joseph Lead Co.
-To Change Annual Meeting Date &c.
The stockholders will vote April 13 on approving amendments to the
by-laws of the company so as to (1) change the date of the annw..1 meeting
of stockholders from the second Thursday of April to the second Thursday
1734
Financial Chronicle
of March in each year;(2) conform the provisions as to notice of and record
date for stockholders' meetings to the present provisions of Sections 45
and 47 of the New York Stock Corporation Law; (3) terminate the company's fiscal year on the last day instead of the last secular day of each
year; (4) authorize the board of trustees by vote of a majority, instead of
three-fourths,to remove an officer of the company;(5) authorize the board
of trustees, in ease of absence or incapacity of the President, to delegate
and assign his powers and duties to one or more of the vice-presidents or
other officers; (6) authorize the execution of stock certificates in the ways
authorized by Section 65 of the New York Stock Corporation Law; (7)
authorize the board of trustees in its discretion to fix a record date, instead
of closing the stock transfer books,for payment of dividends, &c.. pursuant
to Section 62 of the New York Stock Corporation Law; (8) and to make
certain changes in the phrasing of the present by-laws.
President Clinton H. Crane, March 6. stated:
As a result offurther negotiations by our St. Louis attorneys,the Missouri
State Income Tax Department has reviewed the question of the allowance
of a credit to Missouri stockholders in respect to dividends received by them
during 1932. The State Auditor is now willing to allow Missouri stockholders a credit of30%, being the approximate proportion of the net Income
upon which the St. Joseph Lead Co. paid a tax in the most receet years in
which it had a taxable Missouri net income. Stockholders who make
income tax returns in the State of Missouri may therefore take a credit on
their income tax returns against the tax payable by them in the amount
obtained by multiplying the rate of Missouri State Tax on Corporate
Income (2%),by 30% of the dividends received from this company in 1932.
-V. 136. p. 1217.
Safeway Stores, Inc.-February Sales.
Period End. Feb.25- 1933-4 Wks.
-1932.
1933-8 Wks.
-1932.
Consolidated sales
$15,375,857 $18,130,501 $30,371.712 $36,690,814
The number of stores in operation at Feb. 25 1933 was 3,354 as against
-V. 136, p. 1567.
3.527 a year ago.
Schiff Co.
-February Sales.Period Ended Feb.25- 1933-4 Wks.
-1932.
1933-8 Wks.
-1932.
Sales
$441,935
8799.365
$945,660
$510,345
-V. 136. P. 1035.
------Scruggs-Vandervoort-Barney Dry Goods Co., St.
Louis.
-Pays March 1 Interest on Notes-Deposits Over 71%.
The regular March 1 semi-annual interest payment was made on the 7%
notes of company which had been deposited in conformity with the extension plan through which holders of the $1,725.000 serial notes will receive
collateral trust bonds of equal amount all maturing in March 1943. It was
stated a total of $1,248,000 out of the $1,750,000, or more than 71%, had
been deposited up to the close of business March 1. See also V. 136,P. 1390.
(&
Sharon (Pa.)Steel Hoop Co. Subs.).-Earnings.
-1931.
Calendar Years
1930.
$189,249
Gross profit
$737,548 $1,654,932 84,069.169
Maintenance & repairs
354,015
593.437
983,254
1.222,211
544,542
282.233
Idle time expense
207.472
69.505
939,440
925,588
Deprec.& renewals
900,396
948,179
313.161
Int.lc discount (net)
313:577
316.614
345.558
54,361
Int. on notes payable__ _
19,707
Prov.for Federal taxes_
142.500
Loss for the year
$2,016,269 $1,396,996
Previous surplus
def693,841
706,564
Adj. of Fed, tax pr. yrs
Adj.of deprec. prior yrs.
Loss on dismantlement
32,089
of assets
3.410
Miscell. adjustments__ _
14:859
Prov. for loss in respect
to invest. in & adv. to
160,000
aft'''. cos
Preferred div.(8%)Common dividends
$752,803 pf$1341.215
1.690.541
994,946
Cr72,371
Cr3,246
.Dr2,623
32,316
Comparative Balance Sheet Dec. 31.
Assets
1932.
LlabllUles1931.
Cash
$3,383
$6,838 Accounts payable_
Royal Trust Co.
Preferred dividend
call loan
reserve
60.000
Montreal Tr. Co.
Preferred stock_ _ _
call loan
x Common stock
50,000
Dom.of Can.bonds
49,791
Surplus
Accts.receivable.._ 210,855
280,299
Inventories
290,723
426,906
Investment
720
Victory bonds_
51,463
Deferred accounts
16,318
Insurance & taxes,
4,301
advertisl. &c
3,460
P.ant& equip.,&c_
55,139
71.068
1
1
Good-will
1932.
$49,420
1931.
$151,215
462,600
88,261
64,411
3,088
518,000
x88,261
156,509
Total
$664,692 • $917,074
Total
$664,692
x Represented by 30.050 no par shares.
-V. 135. p. 3178.
$917,078
Sinclair Refining Co.
-Patent Rights Agreement.
-
.The Sinclair Refining Co., a subsidiary of the Consolidated Oil Corp.,
has concluded negotiations with the Universal Oil Products Co., and the
Gasoline Products Co. whereby it grants to them the right to extend immunity under its patents to their licensees, while Sinclair in turn will
have rights under the Universal and Gasoline Products' cracking patents
for its own use, the Universal Oil Products Co. has announced.
"This settlement will, in my judgment," Hiram J. Halle. President
of the Universal company, said, "be of great value to the licensees of
Universal Oil Products Co. and to the refining industry generally. The
Sinclair company had threatened our licensees and the licensees of Gasoline
Products Co., with numerous suits on its patents. These suits will now
not be prosecuted. On the contrary, the entire refining industry will
now be in a position to get complete immunities from Universal under the
Sinclair patents."
-V. 136, p. 508.
Standard Fire Insurance Co., Conn.-Bal,Sheet Jan. 1,
Assets1933.
1932.
Liabilities1933. ..
--.
1933.
Cash
$570,627 $1,125,190 Premium reserve_ _81,677,862 $1,763,773
Stocks and bonds_ 3,847.667 3,241,925 Losses In adjustm't 191.713
183,303
Agents' balances._ 242,035
291.492 Reserve for taxes_
72,955
61,130
Int. due & accrued
33,974
24.854 All other liabilities
38,768
36,920
Other assets
13,780
53,330 Special reserve.
264,777
Assets not admitted
Cr54.560 Contingency res've 600,000
Capital
1,000,000 1,000,000
Surplus
1,126,785 1,372,328
Total
Sears, Roebuck & Co.-February Sales.
1933.
1932.
1931.
Four Wks.End.Feb.26
1930.
815.826,847 $19.647,639 923,536,229 427.624,978
Sales
-V.136. p. 1567. 1538.
91,377
March 11 1933
84,708.084 84,682,231
Total
$4,708,084 $4,682,231
Standard Oil Co. of Calif. (Del.).-Scrip Plan.
-
It was announced on.March 6 that this company will issue scrip to its
employees to care for their small cash needs. The company states:
"To provide its employees with a temporary medium for making purchases during the emergency created by the bank holiday in California,
and also to assist the merchants with whom they deal. the Standard Oil
Co. of California is issuing interim cash certificates to its employees in
denominations of $1. $5 and $10 redeemable upon demand on any business
day at the offices of the company in San Francisco. The certificates are
obligations of the Standard 011 Co. of California redeemable in cash and
collectible through banking channels.
"The plan of issuing the interim cash certificates provides employees
with a negotiable medium in small denominations, thus enabling them to
make purchases of all kinds and to this extent relieving the merchant of
the necessity of granting credit or of accepting checks. Otherwise employees would receive checks of large denominations, which, during the
banking holiday, would be difficult to use. The certificates will be issued
to employees only in amounts sufficient to meet their passing requirements.
Issuance will cease with the termination of the banking situation."V. 135, p. 3705.
Standard Oil Co.(New Jersey).
-To Advance Cash.
-
268.605
19,729
537.760
President W. C. Teagle made the following statement:
"Ass measure for tiding over the needs of our employees for cash, reasonable needs for funds to meet their living expenses will be met by advances
of cash from current receipts by the company at their places of employment against the individual's I. 0. U. Those requiring advances of cash
may report to the heads of their respective departments.
"President Roosevelt in his inaugural address on Saturday Said: 'The
only thing we have to fear is fear itself.' We believe in the correctness
of this statement and in the fundamental soundness of the financial system
of the country."
-V. 136. p. 861.
$693.441 sur$706,565 sur$1690540
Profit & loss deficit_ __ $2,917,059
Shares of common stock
359,683
359,683
outstanding (no par)..
391.860
358.140
Nil
Nil
Earned per share
$3.69
Nil
Consolidated Balance Sheet Dec. 31.
1981.
1932,
1932.
1931
. .""--Standard Steel Construction Co., Ltd.
-Defers Div.
Ma/ditties$
AssetsS
The directors have decided to defer the mc-rterly oividene due April'1
aProperty act_ - -17,596.082 18,344,685 bCommon stock.- 1,875,000 1,875,000
on the $3 cum. red. class A preference stock, no par value. The last
lot mtge. bonds__ 6.000.000 6.200,000
Invest. & adv. to
regultx quarterly payment of 75 cents per share was made on this issue
1,058.582 1,042,949 Notes payable--__ 1,025,000
assoc. cos
725,000
on Jan. 11933.-v. 135. p. 18315.
54,265 Accts. payable_ - _ 452,542
54,285
Due from officers_
365,953
2,181,950 2,852,663 Due on ore contr.- 173,937
Inventories
222.829
Standard Surety & Casualty:Co. of:N. Y.
-Balance
106.005 Accrued interest__ 122,100
Ore,contract bal.
122,100
82,485
Sheet Dec. 31 1932.
Notes & accts. rec. 751,042. 826,212 Accrued taxes.._-66,217
Reserves
cCos. 534% bonds
669,039
669.557
Assets
Lia/d/Ines867,530 :Capital surplus--15,756,259 15,867,413
667,530
at cost
Cash
$2,052.666 Reserve for claims
$635,458
Due from officers
U. S. Gov't bonds
574,460 Reserve for unearned prem.__ 752,866
9,814
5,407
and employees_ _
710,410 Reserve for commissions
Municipal bonds
68,158 •
632.507 1,025,099
Cash
Railroad bonds
142,663 Reserve for other liabilities
35,850
291,006
Deferred charges_ _ 291,039
Public Utility bonds
170.565 Contincent reserve
716,205
2,917.059
693,841
Deficit
'
49,313 Capital fully paid in
Miscellaneous bonds
1,500,000
435,280 Net surplus
Preferred stocks
1.388,037
Total
26,156,363 26,114,069
Total
26,156,363 26,114,070
638,620
Common stocks
a After depreciation of $9,009,821 in 1932 and $7.983,262 in 1931.
Prem. in course of collection_ _ 300,379
b Represented by 375.000 no par shares of which 3,117 are held in treasury
1Z,854
Accrued interest
and 12,200 in hands of trustees. c Quoted value $188,160 in 1932 and
g•,365
Other assets
4366,240 in 1931, x Arising from conversion of par value of stock to stock
without par value, paid in surplus and apprecitaion in properties -V.
Total
$5,096,574
Total
85,096;674
136, p. 1390.
-Defers Div.
- Sherwin-Williams Co. of Canada., Ltd.
-
The directors en March 3 v.Sed to defer the quarterly dividend due
March 31 on the 7% cum. pref. stock, par $100 The last regular quarterly
payment of 1 % was made on this issue on Dec. 31 1932.
An official statement said in part: "The directors feel that in passing
the dividend they have acted for the preservation of the shareholders'
position and in the interests of the company es a whole, so that its liquid
condition may not be impaired and so that its resources may be properly
conserved."-V. 135, p. 4047.
-""••••(Frank G.) Shattuck Co.
-Smaller Distribution.- .
The directors on March 9 declared a dividend or6 cents per share on the
common stook, no Dar value, payable April 10 to holders ofrecord March 20.
Payment will be made by check subject to any banking restrictions which
may be enforced.
The abcrie dividend compares with 123.i cents per share paid on July 11,
Oct. 10 1932 and Jan. 10 1933 and with 25 cents per share previously each
quarter.
-V. 135, p.3011.
-Earnings.
(H.) Simon & Sons, Ltd.
Calendar YearsNet earnings
Depreciation
Reserve for bad debts
Other reserves
1932.
441,648
12,849
8,829
88,695
1931.
862.995
12,394
9,559
1930.
8136,017
10,915
8,143
1929.
$219.260
12,937
5,051
Net profits
$41,042
def$68,726
$116,959
4201,272
Preferred dividends__ _ _
37,205
41,525
22,813
49.092
Common dividends
75,125
75,125
45,075
Skg.fd. rcs. for pref.stk.
15.174
Surplus for year
def$91,539 def$71,288
$309
$91.931
Previous surplus
156,509
230,236
210.876
118.945
Sinking fund reserves_
19.054
Adjus. Inc. tax prior year
Dr.559
Dr.2.439
Balance forward
864.411
81756.509
9230.231
3210,876
a Includes $15,279 profit on redemption of preferred stock.
Stanley-Rowland-Clark Corp.-Has Funds for Interest.
Sufficient funds, it is announced, have been made available to pay the
Feb. 1 1933 coupons on the 6% bonds of 1946. The company is a subsidiary of Warner Bros.
-V. 136, p. 861.
State Street Investment Corp.
-Income Account.
Years Ended Dec. 311931.
Dividends & interest received
Provision for State taxes
Management services
102.953
35.925
Other expenses
6.910
6.223
. Net income
$342.351
$277,165
Statement of Surplus1931.
1932.
Previous surplus
$979,991 $2,367,036
Net income as bove
342,350
277,185
Net credit to surplus from purchase dr sale of
treasury stock during period
108,345
131,397
Adjustment in prior years taxes
4,463
31
Amount transferred from capital value of the
corporation's stock at Feb. 19 1932
10,000,000
Less portion thereof applicable to treasury stock__ _ Dr1,915,789
Net lossfrom sales ofsecurities
1,305.225
3,621,327
Less lossesfrom sales ofsecurities held Dec.31 1931,
charged to investment reserve
'Dr:3,780,203
Total surplus
$9,631,671 $1,516,990
Cash dividends declared
536.999
389,517
Appropriation for investment reserve
7,186,000
Surplus account as per books at Dec.31
$979,991
$2,056.154
Deduct excess of book value of investments (net of
investment reserve) over market value at Dec.31
7.186.474
364,421
"1.:g2R $4A8lt
3
Surplus of assets at market values over liabilities
& capital stock at Dec.31
81,691.732 df$6,206,483
-The excess of cost over market value of securities owned was
Note.
$3,770,219 at Dec. 311932. as compared with $7,186,474 at Dee. 311931,
a decrease of $3,416,255 during 1932.
Volume 136
Financial Chronicle
Comparative Balance Sheet Dec. 31.
Assets1932.
1931.
Liabilities-1932.
1931.
Cash
8535,859 5356.859 Accts. pay. St ac.S.Treas. notes_ 4,131,857 3,505,137
$29,474
crued expenses- - $10,566
24,000
Scours. (mkt. val.) 2,834,425 4,171,646 Res.for State taxes
13,026
Res, for dive, de86,489
132,788
clared payable__
yCapitaistock.- 5,700,329 14;053,570
1,691,732df6,206,484
Surplus
Total
$7,502,141 $8,033,349
$7,502,141 $8,033,349
Total
y Represented by 200 shares of class A stock of no par value and 172.777
shares of class B stock of no par value in 1932 (1931, 176,850 shares of no
par value).
-V. 136, p. 1391.
Starrett Investing Corp.
--New Trustee. The Manufacturers Trust Co. has been appointed trustee for $8,150,000
Starrett Investing Corp. 5% secured gold bonds, series of 1950.-V. 135,
p. 4570.
Straus Building (Straus Safe Deposit Co.).
-Receiver
Named.
Federal Judge James H. Wilkerson at Chicago, March 2, appointed
William Scott Bond, Chicago real estate man, as temporary receiver for
the Straus Building, which Is owned by the Straus Safe Deposit Co.
Straus Safe Deposit Co. is unable to meet the semi-annual interest payment due at this time on its 5%% sinking fund debentures, the debenture
holders' committee announced through Sidney H. Kahn, President of tne
company. Toe bonds have been called for deposit with the American
National Rank & Trust Co.
"In view of the recent tax decision it was deemed to be in the public
Interest and to afford the best protection for the debenture holders to make
payment of delinquent taxes, which action necessitated the formation of
the debenture committee," Mr. Kahn said.
The Straus Safe Deposit Co. owns the Straus Building at the southwest
corner of Michigan Avenue and Jackson Boulevard, Chicago and there are
$6,000,000 of the debentures outstanding. The latest report of occupancy
of the Straus Building shows 91.3%, Mr. Kahn explained. The character
of the occupancy is said to be of a very high grade and the net earnings are
considered very substantial.
The debenture holders' committee is composed of Rufus C. Dawee,
Chairman; George W. Rossetter and Jay C. McCord. M. A. Rosenthal is
Secretary of the committee.
Receivership action followed the filing of a petition in equity on behalf
of the Northwestern Mutual Life Insurance Co. of Milwaukee, which holds
a note for $9,000,000 representing a first mortgage lien on the building
executed June 6 1928.
According to the bill of complaint the Straus Safe Deposit Co. had failed
to pay city taxes amounting to approximately $500,000 for the years 1928,
1929 and 1930. Under the provision of the mortgage such default in tax
payments makes the principal of the note due immediately. There has
been no default in interest payment on the $9.000,000 note held by the
Insurance company.
The petition alleges that a fair value of the building at the present time
Ii approximately $7,500.000. According to the petition gross annual
Income from the building is 2900,000 and net income is $340,000.
Judge Wilkeilion set March 16 for a hearing on a motion for the appointment of a permanent receiver.
Sun Oil Co. (4k Subs.).-Earnings.
1929.
1930.
Calendar Years1932.
1931.
Gross oper. income(excl.
inter-co. sales)
$67,153,401 $69,175,120 $98,333,616 $86,007.948
Costs, oper. & gen. exp. 53,129,884 53,943,287 77,482,000 67,441,826
Taxes (incl. est. Federal
1,546,245
1,695,519
1,317,361
c1,963,335
income tax)
3,131,580
2,992,377
2,162,470
Intangible devel. costs- - 2,272,419
1,322,297
1,640,545
1,018.560
Depletion & lease amort.
798,218
Deprec., retirement and
4,143,575
5,208,805 5,036.363
• other amortization__ - 5,859,100
Net oper. income.-- - $3,830,445 $5,524,637 $9,486,812 $8,422,424
Non-oper. income (net)_ 1,300,586
545,802
391,587
515,380
Total income
$5,131,030 $6,070,439 29,878,399 $8,937,804
Int. & d'art. on funded
and long-term debt...
555,435
500,808
529,450
679.271
Other interest
146,480
244.876
165.861
250,355
Inventory Write-down_
2,261,377
1,387,232
Net income accrued to
minority stockholders
3,357
Net profit accr.to corp. $4,198,046 $3,107,147 $7,745,484 $8,242,492
Earned surplus beginning of period
11,502,220 10,605,255
9,136,518
6,498,158
-Dr
Adjustments
1.005,064
19,948
74.270
37.286
Total surplus
$14.695,202 $13.638,132 116,862.054 $14.703,362
Divs,on pref. stk.(cash)
599,098
600.000
549,957
299,955
Divs, on corn. stk.(cash) 1,5'15,582
1,535,912
1,410,216
1,298,607
Stock thy, on com. stock 1.500,658
4.296,627
3,968,282
Earned surplus unap.
end of period
$10,999,864 211,502,220 $10,605,255 $9,136,519
Fibs. common stock outstanding (no par)
1,535,456 b1,409.247
a1,531.422
1.417.292
Earnings per share
$1.63
625.10 •
42.35
$5.60
Prior to distribution on Dec. 15 of 3% stock dividend. b Being the
a
number of shares outstanding prior to payment of 9% stock dividend on
Dec. 15 1930. c In addition to the amount of taxes shown above, there
was paid (or accrued) for State and provincial gasoline taxes $12,866,362
and for Federal gasoline taxes $2.509,866.
Consolidated Balance Sheet Dec. 31.
1932.
1931.
1932.
1931.
Assets$
$
Cash
4,527,992 2,359,510 Notes payable_
1,965,750
Marketable occurs. 212,520
449.186 Accounts payable_ 4,435,680 3,818,046
Acceptances and
Accrued liabilities- 2,209,458 1,338,492
notes receivablefc4,008,790
891,105 Other current iiabil.
293,717
Accts. receivable_ ,
3,522,257 Funded and long
term debt
Due from em11,864,000 12,131,000
ployees
179,112
142,877 Due to Mill. cos
657,385
12,015,468 13,529,828 Accrued dividends
On
20,000
Materials and sup(pref. sleek)...
50,000
2,944,450 2,846,783 Est. Fed3 Inc. tax_ See b
plies
281,193
Excess shipy'd pl.
Inv. In non-affil.
companies
379,891
& prop. facilities
1 156,160
Inv. In affil. cos 8,964,646 9.193,145 Devel.workDiesel
engines & other
Treasury securities 643,586
machinery. _
b2,912,435
Other investments 1,324,630
326,706
_Otherres.(invent.
a Properties, plant,
equipment and
and conting.).
584,483
60,440,669 60,207,448 Capital & surplus
patents
40,904
of minority Mts.
8,400
Prepaid and deferred charges._ 2,107,037 1,924,518 Preferred stock._ _10,000,000 10,000,000
d Common stock _ _54,199,176 52,010,380
Earned surplus_ 10,999,864 11,502,220
97,368,902 95,446.547
Total
97,368,902 95,446,547
Total
a After reserve for depletion, depreciation and amortization of $39,515,637 in 1932 and $33,653,384 in 1931. b Includes reserves for taxes. c After
reserves of $250,000. d Represented by 1,591,110 no par shares in 1932
and 1.535.456 in 1931.-V. 136 p. 677.
.-Equity Receivership.
(S. W.1 Straus Co. (ill.)
Holman D. Pettibone, President of the Chicago Title & Trust Co., was
temporary receiver March 2, with bond set at $25,000,following
appointed
the filing of an equity petition on behalf of C. 0. Chestnut of Detroit for
a claim of $6,022. The appointment was made by Federal Judge James H.
Wilkerson. The "Chicago Journal of Commerce" March 3, further states:
The petition alleges tnat although the company is solvent and its assets
are twice the amount of its liabilities, it is unable to meet current obligations because of frozen assets. Assets are stated to be about $12,000,000
1735
and liabilities are approximately $5,000,000. Judge W ilkerson set March 15
for a hearing on the motion for appointment of a permanent receiver.
A bankruptcy petition was also filed against the company on behalf of
the Fleming Coal Co. and two other creditors with claims of more than
$5,000. No action, however, was taken on this petition.
(S. W.) Straus & Co. Inc. (Del.).
-New Committee to
Represent Bondholders of Straus Defaulted Isue.Holders of defaulted Straus bonds are in receipt of a letter from the
company announcing that all the protective committees formed by it had
resigned and the bonds deposited with such committees have been turned
over to an independent committee of which Lewis H. Pounds, (recent
Republican candidate for Mayor of New York is chairman. Other members
of the committee are George Gordon Hattie, lawyer; Frank A. Murphy,
partner in J. S. Bache & Co., bankers; Simon Newman, Vice-President and
a director of Brown, Wheelock & Co.; John D. Reilly, President and a
director of the Todd Shipyards Corp.; George U. Tempers, President of
Riedel & Co., and A. L. Werner of A. L. Werner & Co.
Mr. Pounds is quoted as saying: "We are ready to co-operate with the
Roosevelt committee and with any one else if such co-operation will be for
the benefit of the bondholders."
As noted in last week's "Chronicle" former United States Senator
William M. Calder and Robert Moses, chairman of the Long Island State
Park Commission, have been appointed receivers (under the consent injunction in the State action) by Supreme Court Justice Lockwood in Brooldyn.
Bankruptcy Is Sought
-Three Creditors File Petition in
Federal Court.A petition in bankruptcy against toe company was filed March 3 in the
Federal Court at New York by three creditors whose claims aggregate
$577. The creditors filing the petition are John F.Rohrback, an accountant,
who claims, $403; Wagner & Co., with a claim of $87, and Harry Finkelstein, with a claim of $87. The petition does not list the company's assets
or liabilities. It alleges that the company is unable to meet its obligations
and asks the court to appoint a receiver and that creditors be protected.
-V. 136, p. 1568.
(S. W.) Straus Investing Corp.
-Receivership.Frank G. Tallman of Wilmington and Morgan 8. Kaufman of Scranton.
Pa., were appointed March 3 by Federal Judge John P. Melds at Wilmington, Del., as receivers for the corporation.
Suit for a receivership was filed re,ently by Edgar Churchill of Chicago.
The bill of complaint alleged that although the boot value of the corporation exceeded Its liabilities the concern was insolvent in that It nad current
liabilities which it was unable to pay. The company consented to the
appointment of receivers.
-V. 134. p. 866.
Superior Steel Corp.-Earnings.--Calendar Years1929.
1932.
1930.
1931.
Gross sales
$2,024,537 $3,315,974 $4,533,324 $7,269,608
Freight. disct. & allow's60,247
62,819
45.652
88,441
Cost of sales
6,539,447
2,066,999
4.233,306
3,180,633
Selling expenses
147,248
183,392
188,869
188,249
General expenses
128,352
193,466
170.277
149,060
Provision for depreciation of property
120.000
120,000
120,000
108.000
Other charges (incl. taxes
on bond int., prov. for
uncoil. accounts, &c.)
61,321
16.892
68.933
19.738
Net loss from oper'nsOther income
$545,035
44,825
$427,306
54.012
$298,299 sur$162,745
62.227
67,760
Great loss
Int. on 1st mtge. 6%
sink.fund. gold bonds_
Amort. of bond discount
and expense
Other income charges
$500,210
.$373,294
$230,539 m4224,972
78,462
84.221
89,460
98.853
21,600
21,600
13,256
21,600
17,325
21,600
29,644
Net loss for year
$600,273
Previous surplus
def 179,382
Adjustment of cost of
treas. stock
47,810
$492,373
312,9.90
$358,924 sur$74,874
671,915
597.040
$671,914
$312,990
Surplus at end of year_def$731,845 def$179,382
Shares capital stock out115,000
standing (par $100)..
115,000
112,576
115,000
Nil
Earnings per share
ND
Nil
$0.65
Balance Sheet Dec. 31.
Liabilities-1939.
1981.
Assets-1932.
1931.
4
xProperty accts.-54,070,650 $4,177,359 YCaPitalstork---54.85 .012 $4,754,223
.
80,244
72,858
441,302 Accts. payable_ _
Cash
211,630
87.422
24,439
'U.S. Liberty bonds 209,662
201,545 Wages payable_,_
440
308
Accts. recelv.,cust.
140,144 Cuss. credit bal.99,475
Notes receiv.,cust.
28,000 Int. on 1st
18,704
3,185
3.540
bonds
2,010
Accr.int.receivable
1,848
870,358 C'm'wealth of Ps,
Inventories
641,384
0,314
3,194
corp.loans tax..
Notes & accts. re929
celv.(not curr.)_
z39,055 Fedinotax on bd.
20,323
9,177
Sinking fund-cash
927 Other accruals
927
1st mtge.6% bonds 1,288,000 1,416,000
Company's secur.
731.845
179,382
In treasury
116,658 Deficit
Deferred charges..
78,745
32,331
Total
$5,297,936 $8,098,105
$5,297,936 $6,096,105 Total
x After depreciation of $2,523,319 in 1932 and 52,405,297 In 1931.
y Represented by 112,576 (115.000 in 1931) shares (par $100), but issued
at less than par. z Accounts receivable only.
-V.136, D. 1391.
-Earnings.
Sutherland Paper Co.
Calendar YearsGross prof t from opera.
Sell. & adminis. expenses
Provision for deprec'n--
1932.
$266,542
233.762
222,744
Profit from operations
Other inc. less 0th, chgs_
$32,780
Dr40,728
loss$7,949
Total income
Federal income tax
1930.
x$707,092
443,272
1929.
4859.100
400,998
$107,373
8,041
5263.820
8,273
8458,102
Dr.29.012
$115,414
15,142
$272,093
31.966
$429.090
40,662
1931.
$330,117
Net profit
losa$7,949
$100,272
$240,127
$388.429
Earns.per sh. on 300,000
shs. cap.stk.(par $10)
Nil
$0.80
$0.33
$1.29
x Profit from sales.
Note.-Dividends amounting to $29,540 were paid during 1932.
Balance Sheet Dec. 31.
Assets1931,
1931.
1932.
1932.
Cash and marketAmounts & notes
able securities_ - $113,608 $165,253
payable for purxNotes&acets. rec. 313,416
381,499
chases, expenses,
Inventories
2319,710 $285,351
701,702
670,502
accruals,&e_
Val. of life Maur
43,778
31,168 Common stook__ 2,870.000 3,000,000
Meal estate, plant
460.643
479,067
Surplus
and machinery-y2,438,808 2,455,803
Patents
1
1
Other assets
15,845
39,906
Deterred charges20,285
23.195
Total
Total
$3,650,363 23,764,418
$3,650,353 $3.764,418
x After reserve for doubtful accounts of $23,300 in 1932 and 515.217 in
1931. y After reserve for depreciation of $2.019,887 in 1932 and 41.805.354
In 1931.-V. 135. p. 2351.
Terminals & Transportation Corp. of America.
Fraudulent Issue of Stock Charged.
The Detroit' Free Press" March 1 had the following:
A petition asking a hearing to air charges of fraud in the formation and
issuance of stock of the corporation was filed Feb. 28 in Federal Court by
Arnold F. Zeleznik, attorney for two stockholders, Albert and Lewis
Kortan.
Financial Chronicle
1736
• The petition charges that the promoters of the corporation inflated their
•assets from $3,000,000 to 56,000,00080 that a stock issue could be floated
to net the promoters a profit of $4,000,000. Permission to do this was
obtained from the Michigan Public Utilities Commission, it is charged,
although application should have been made to the Michigan Securities
Commission.
Property acquired in Buffalo for $23,000 was represented as an asset
and appraised at $1,532,000 and subsequently sold for 523,000, the petition
charges.
The directors of the company at the time of the first annual report in
1928 were: A. Miller McDougall, President, and now one of the receivers;
Mason P. Rumney. H. T. Hoopes, Huston Rawls, S. R. Kirby, John
Baker, Arthur H. Buhl, Arthur H. Gilbert, Donald S. Kiskadden and
.J. C. Dissette.-V. 130, p. 2988.
-Resumes Dividend.=
Thayers, Ltd.
A quarterly dividend of 8744 cents per share has been declared on the
$3.50 cum. 1st pref. stock, no par value, payable March 15 to holders of
record March 6. A similar distribution was made on Oct. 1 1932; none since.
-V.136. p. 171.
-Dividend Action Postponed.
(John R.) Thompson Co.
Because of the unsettled banking conditions, the directors
have deferred action on the quarterly dividend ordinarily
payable about Aptil 1 on the common stock, pax $25, until
their meeting on March 11. Quarterly distributions of 25
cents per share were made on this issue from July 1 1931 to
and incl. Jan.3 1933, as against 50 cents per share on April 1
-V. 135,
1931 and 75 cents per share in preceding quarters.
p. 4229.
-Preferred Dividend DeWater Associated Oil Co.
-The directors on March 8 voted to defer the quarterly
ferred.
dividend due April 1 on the 6% cum. cony. pref. stock,
par $100. The last regular quarterly payment of 13.% on
this issue was made on Jan. 3 1933.
President Axton J. Byles, March 8, in a letter to the
preferred stockholders, stated:
As indicated by the annual report for the year 1932, dividends on the
pref.stock of the company were earned by a narrow margin during the year
1932.
The situation in the oil industry is such that the dividend on the pref.
stock Is not being currently earned. In view of this fact and general conditions, the board of directors believes it would be unwise to disburse funds
AS dividends at this time and therefore has decided to omit the dividend on
the company's issued and outstanding 6% cum. cony. pref. stock payable
April 1 1933.-V. 135, p. 3706.
-The di-Omits Common Dividend.
Water Oil Co.
rectors on March 9 voted to omit the quarterly dividend
ordinarily payable about March 31 on the common stock,
no par value. From March 31 1932 to and incl. Dec. 31
..1932, quarterly distribution of 25c. per share were made on
:this issue.
-V. 136, p..508.
-Dividend Rate Decreased.
Torrington Co.
The directors have declared a quarterly dividend of 50 cents per share on
the common stock, no par value, payable April 1 to holders of record March
17. Previously, the company made quarterly distributions of 75 cents per
-V.135, p. 2007.
share on this issue.
March 11 1933
-Div. Action Again Postponed.
United Dyewood Corp.
The directors at an adjourned meeting held on March 9 took no action
on the regular quarterly dividend due April 1 on the 7% cum. pref. stock,
Par $100. This matter will again be considered at a meeting to be held
later this month. The last regular quarterly payment of 134% was made
on the pref. stock on Jan.3 1933.-V. 136. p. 1393.
-Earnings.
United Engineering & Foundry Co.
Wars Ended Dec. 31Gross profit from manufacturing
Miscellaneous income
1931.
1932.
$201,682 51,692.955
223.701
198.111
Gross profitfrom operations
Administration,selling expenses & royalties
Depreciation
Federal taxes
Inventory adjustment
$399,793 51,916,657
636,367
477,436
235,863
239,019
90,718
23,870
Net earnings
Miscellaneous surplus adjustments
loss$340.532
31,768
$953.708
704.040
Dr$372,300 $1,657,748
Increase in surplus before dividends
Nil
Earn, per share on 416,118 shares common stock.._ _
Cotedesned Balance Sheet Dec. 31.
1931.
1931.
1932.
1932.
Liabilities8
$
s
$
Assets
927,013 Accts. payable &
445,128
Cash
accr'd wages...
86.514
255,847
Accts. & notes re212,658 1,972,012 Accr'd taxes local
ceivable
and State
64,839
33,430
973.192 1,380,591
Inventories
38,521
379,441
Marketable secure. 1,659,663 2,158,287 Advance billings._
Res. for Fed. In36,579
Cash in closed bke_
come tax
167,289
(due '34) 1,053.348
Notes rec.
Res. for allow. &
Employee's loan__ 203,986
contingencies___ 244,791
379,258
272,861
Treas. stock (cost) 175,407
975,400
140,000 Preferred stock__ 848,900
Mortgage loans_ 140.000
52,856 :Common stock.. 5.409.534 5.409,534
51,512
Deferred charges__
Plants & property. 4,658,035 4.834,811 Earned surplus... 3,249,819 4.410.153
Patterns, drawings
303.331
& pat. rights_ 302,000
9.911.508 12,041,763
Total
9,911.508 12.041,763
Total
-V. 135. p.831.
x Represented by 416.118 shares of no par value.
-Will Fight Stockholders' Suit.
United Founders Corp.
Concerning the suit brought by certain stockholders for an accounting
against the company. Louis H. Seagrove, President. said: "Charges
brought in the complaint against United Founders are absolutely false.
The suit is utterly without merit and will be contested to the limit."
The action was brought by Richard A. Rowland and others against
company and its directors, Founders General Corp., Investors General
Corp. and the Bond & Share Investment Co., Ltd., St. John's, Newfoundland and claims that the corporation has lost $50,000,000 through
-V. 136, p. 1570.
the acts of Its officers and directors.
U.S. Bobbin & Shuttle Co.-Balance Sheet Dec.311931.
1932.
Assets$88,920
Cash & accts. rec. $49,317
31,781
31.925
Notes receivable..
400.771
378.560
Inventory
88,456
82,488
Market securities_
215,845
U. S. securities- 165,206
Property, &c., less
depreciation.-- 1,476,716 1,495,265
7,176
8,479
Investments
13,163
13.006
Patents
286
342
Prepaid expense
14.071
9.857
Unexpired insur
Total
82.215,901 $2,355,734
1931.
1932.
Liabilities-$9,555
Accounts payable- $13.939
3,541
2.478
Accrued laborx1,879,800 1,884,800
Capital stock
457.857
319,684
Surplus
Total
42,20,901 $2,355,734
-V. 134, p. 2547.
x $616,200 preferred and $1,253,600 common.
-Dividend Action Postponed.
Tr -Continental Corp.
-Deposit of
United States Bond & Mortgage Corp.
as to the
Upon advice of counsel, due to the uncertainty
Bonds Urged.
means by which dividends can be disbursed to stockholders,
Guaranty Trust Co. of New York on Feb. 27 1933 was appointed by the
the regular quarterly dividend on the $6 cum. pref. stock, Supreme Court of New York as receiver for the 634% guaranteed coll.
% guaranteed
trust sinking fund gold bonds dated May 1 1928 and
no par value, was not declared at a meeting of the board
July 15 1928.
ondirectors held on March 7. The meeting was adjourned coll, trust bonds dated
The bondholders' protective committee (Mayer L. Half, chairman),
subject to call as soon as the situation clarifies. The last in a letter to the bondholders, states in part:as trustee, has the right to
York.
Trust Co.
The
regular quarterly distribution of $1.50 per share was made declare Guaranty and sell theof New
mortgages and other securities held as cola default
on this issue on Jan. 1 1933.-V. 136, p. 1038.
lateral for bonds. It is extremely doubtful whether the trustee will conand to administer It for
•
-Earnings.
Truax-Traer Coal Co.
For income statement for 3 and 9 months ended Jan. 31 see "Earnings
-V. 135, p.3870.
Department" on a preceding page.
United Biscuit Co. of America.
-Earnings.-- Calendar Years1932.
1931.
1930.
1929.
Gross profit
$7.080,222 $8,754,236 $9,174,929 59.347.834
Expenses & depreciation 5,818,203 6,492,054 6,653,620 6,560.413
Operating profit
Other income
51,262,019 $2,262,182 52,521.309 82,787.421
51,160
49,297
47,726
82,779
Total Income
$1,309,745 $2,313,343 52,570.606 $2,870,200
221,888
Interest
215,512
235,563
270,046
283,145
Federal and State taxes..
149,047
265,613
294,396
46.844
46,835
Other deductions
36,828
51,661
Net profit
x Subsidiaries' net profit
$908,357 $1,778,997 $2,005,062 $2 254,097
Dr93,796
Total net profit
Preferred dividends_ _ _ _
Common dividends
$908,357 $1,778,997 $2,005,062 $2,160,301
116,050
102,739
109.385
128,126
929,311
771.500
749,095
900,650.
sider that it has a right to hold such collateral
will consider
the benefit of bondholders. It may well be that the trustee the authority
it more consistent with its duty to sell the collateral pursuant tothereof under
respective trust indentures. The sale
vested in it by the
would
existing conditions would produce only a nominal amount, whichfor the
be substantially all that the bondholders could expect to look to
committee should represent substantially
satisfaction of their claims. If this
all of the bonds secured by the pledged mortgages and other securities
it would be able to protect the interests of the bondholders represented by
it, either by the purchase of such collateral at a gale or by such other
practical methods as the committee at the time might deem most advisable.
The cor9mittee considers it of the utmost Importance to bondholders
that they unite for their common protection by depositing their bonds
with the committee.
In view of the existing situation the committee believes it of importance
that bondholders act without delay for the protection of their common
interest.
The holders of the two foregoing bond issues and the holders of the 634%
cony, guaranteed coll, trust bonds series 0-1 dated May 1 1929 are asked
by the committee to deposit their bonds with the Underwriters Trust Co.,
37 Broadway. New York. John D. Colgan, 25 Broadway, New York,
-V. 136. p. 1570.
N. Y., is Secretary.
-Earnings.
U.S. Industrial Alcohol Co.(8c Subs.).
1929.
1931.
1932.
1930.
Calendar Years52,482,348 51,049.704 54,073.365 $8,942,594
Operating income
2,392,746
1,404,852
1.726.582
1,804,470
Adm..sell.& gen.exps
1,245,424
1,156.949
1,164,143
889.200
Depreciation
12,191
Income charges (net)
583,566
Reserved for Fed. taxes
Reduction of inventory
3,000.000
to market values
5740,301 $1,117,512 $1,283,080
Surplus
def$95,032
Shs. common stock out450,325
470.766
standing (no par)___ _
484,438
450,325
$4.01
$3.71
$1.79
Earnings per share
$4.39
x Net profit of companies acquired during the year prior to date of
acquisition.
Consolidated Balance Sheet Dec. 31.
1932,
1931.
1932.
1031.
$
Liabilities$
$
$
Alias771,504 Accounts payable- 241,797
746,665
322,486
Cash
28,254
25,896 Accruals
277,934
402,753
Investments
Liab. In connection
Cash surr. value of
with employ.stk
43,517
69,931
life insurance.546,281
Notes & accts. rec. 897,050 1,190,647 ''purch. plan._ 413,281
4,399
1,249,259 1,462,430 Deterred liabilities
Inventories
15-year 6% deb.
15-yr.6% deb. bds
3,200.000 3,360.000
bonds
47,000
or company.
Reserves
86,856
90.838
Employees' stock
548,390 7% cum. cony. Pf.
449,621
purchase plan
1,433,600 1,519,800
stock
Return,containers,
68,492 :Com.stk.&linttlal
50,078
racks, &o
10,349.030 10,349.080
surplus
y Land, buildings,
3,258,880 3,353,246
Earned surplus
mach. & equip.,
6,754,942 6,765.222
57.431
45,431
Other assets
Cost of cap, stock
8,800,660 8.800.052
of sub. cos
168,342
169.536
Deterred charges
$176,105def$2020.750def$4138.311 $2,266,091
Balance, surplus
4,458.318
2,789,765 10,855,186 15,238.355
Profit & loss surplus_
373,846
373.846
373,846
373,846
(no par)_
Com.shs.outst.
$12.63
Nil
$0.47
!x$2.95
Earnings per com.sharex On net profit of $1,104,753 before charging inventory reduction of
$3,000,000.
Consolidated Balance Sheet Dec. 31.
1931.
1931.
1932.
1932.
8
Liabilities8
AssetsyProp..plant & eq.19,301,045 19,926,730 :Common stock..22,584,600 22,584,600
567,689
1,416,052 1,216,052 Accounts payable- 942.722
Investments
92,153
1,342,935 2,327,478 Miscell. accruals.- 252,179
Cash
Res've for cooling. 1,750,000 5,055,789
Deposit on acc't
Res,for ship. rep'rs
99,968
contingent prop.
273,634 Surplus
4,458,318 2,789,765
purch. agreeln't
Acct.' receiv.. &c. 1.400.223 2.807.137
1,144,673
assets
Merchandise. &c... 5,342,393 4,249.784
289,181
140,467
Deferred charges
19,261,428 19,948,886
19,261,428 19,948,886
Total
Total
x Represented by 450,325 no 'par shares. y After depreciation and
obsolescence of$4,429,853 in 1932 and $4.116,129 in 1931.-V. 135, p 2844
30.047,787 31.089,996
Total
30.087,787 31.089.995
Total
x Represented by 373,846 no par shares. y After reserve for depreciation of $9,814,500 In 1932 and 59,135,870 in 1931.
Net income
Common dividends
5176,10510551.833,828loss1.895,247 14,720,858
2,243.064(57)2454,768
186,922
Financial Chronicle
Volume 136
In their remarks to stockholders, Chairman of the board
.Charles E. Adams and President Charles S. Munson state
in Dart:
Federal Government statistics show that total sales of industrial ethyl
alcohol by manufacturers for all purposes in the United States declined in
1932 approximately 50% from those of 1931. It is estimated, however,
that the decline in the amount used was approximately 30%. Tne difference is accounted for by the large stocks purchasea at low prices at the
end of 1931 and carried over into 1932 in the hands of dealers and jobbers.
New business in 1932 was booked at satisfactory prices. The year's
operations, nowever, do not reflect this fact completely, as certain lowpriced contracts placed in 1931 dia not expire until the first quarter of 1932.
In the main, it was the total volume of business that proved disappointing
during the year, rather than any other feature of the company's operations.
No change of importance was made in the company's investment account
;
during the year, and this account is still largely made up of the company's
minority holdings in Pure Carbonic Co. of America and in Sterne Corp.
The former company paid dividends of $2 per share during the year, partially out of surplus accumulated prior to 1932. The latter company con• tinued the 7% dividend on its preferred stock by payment out of previously
•-accumulated surplus.
On Dec. 31 1931 the company carried on its balance sheet a reserve for
contingencies in the amount of $5.055.789, which had been created from
earned surplus. By action of directors, this reserve was restored to earned
surplus as of Dec. 31 1932. A new reserve for contingencies of $1,750.000
has been set up out of earned surplus. This amount is sufficient to provide
a 100% reserve against all items of undetermined value carried as "miscellaneous assets" ana to off
-set any shrinkage in value at Dec. 31 1932 of all
-securities held at that date, including company's stock held as collateral
to advances made to trustees prior to 1931 in connection with officers' and
employees' stock subscription plans.
As the result of a careful survey of capital assets completed during 1932,
the conclusion was reached that a restatement of the values of fixed assets
was most desirable. Company is still carrying on its books at substantial
values an excess of productive facilities, largely accumulated to serve war
needs, and the requirements of the industrial boom period, and considerably more than is required for present needs. Furthermore, changes in the
art are likely to render obsolete many of such facilities before business again
expands to the point where they might be of use. Under these circumstances
and in view of the radical change in values that all such assets have undergone in the past three years, directors find great difficulty in establishing
a conservative basis on which the fixed assets of the company and its subsidiaries should be carried. They have therefore concluded to recommend,
with tne approval of Haskins & Sells, from an accounting standpoint,
that steps be taken to increase the property reserves in order to reduce the
book value of all fixed assets of the company and subsidiaries to an arbitrary and nominal amount of $1. The cost of the fixed assets will continue
to be shown on the consolidated balance sheet with the off-setting reserves
deducted from such cost. In view of the impossibility of arriving at even
an approximate valuation of plants under existing conditions, it is felt
that an understatement of such values is the conservative course.
Therefore, at the special and annual meetings of stockholders to be held
April 20 1933, you will be asked to approve and authorize the corporate
action for the purpose of effecting, by two successive steps to be taken in
accordance with the laws of West Virginia, in which State company is
Incorporated, the reduction of the stated capital of the company from
$22,584,600 to $3,738,460, and thereby creating a capital surplus of $18,846,140. If this action is authorized, you will further be asked to approve
• the transfer of the capital surplus so created to property reserves, together
with an additional amount of $454.903, which will be cnarged against
earned surplus, the whole resulting, when reflected in the consolidated balance sheet, in the reduction of the net book value of the fixed assets to
• $1. as stated.
As future depreciation charges will thus be eliminated, a "reserve for
replacements" account will be set up, commencing with 1933. by a direct
monthly charge against income of an amount deemed sufficient to provide
'for the replacement of productive facilities. It is believed that for the year
1933 an adequate amount of such charge will be $300,000. watch may be
compared with the sum of approximately $900.000 charged against income
as depreciation in 1932.
•
Pro Forma Consolidated Balance Sheet, Dec. 31 1932.
(Giving effect as of that date to proposed reductions of the stated value
of common stock and of the net book value of fixed assets.]
Assets
Liabilities
Cash
$1,342,935 Accounts payable
$942,722
. Notes, acceptances, and acMiscellaneous sect uals
252.179
counts receivable:
Reserve for contingencies
1,750.000
Customers
1,391,826 Reserve for ship repairs
99,968
Officers and employees....
76.599 Common stock (373,646 shs
Others
60.068 no par)
3,738.460
Earned surplus
4,003,415
Total
$1,528,494
Leas reserves
128.271
Balance
$1,400,223
Inventories (at lower of cost or
estimated market value).- 5,342,393
Land, buildings & equipment
al
Investments at eon (mnel
advances to trustees)
1,416.052
Miscellaneous assets
1,144,673
l'repaid exp. & def. charges
140.467
Total
$10,786,743 Total
$10,786,743
a After deducting reserves of $29.115.543.
Notes.
-At Dec.'31 1932 company had a contingent liability of $242.936
for customers' trade acceptances discounted.
In the preparation of the above statement, the consolidated balance
sheet as a Dec. 31 1932 has been adjusted to give effect to (1) the reduction of the stated value of the outstanding common capital stock to $10
a share, thereby creating a capital surplus of $18.846,140: (2) the charging
of an equivalent amount to capital surplus and a surther amount of $454.904
to earned surplus; and (3) the crediting of $19.301.044 to property eserves:
all for the purpose of reducing the net book value of fixed assets (land,
buildings and equipment) to the nominal amount of $1, as
lution adopted by the board of directors recommending covered by resothe plan to the
stockholders for consideration and approval.
-V. 136, P. 1393.
nited States Foil Co.-Netr-fiturernr
he Now York Curb Exchange has admitted to trading privileges COmnow class B common stock, Par $1 in substitution for the old no par
p
,
atoc
136, p. 1570.
nited States Leather Co.
-To Reduce Capital.
The stockholders at a'special meeting April 5 will be asked to approve a
proposal for reduction of capital to $13,003,722 by reducing capital represented by classgA stockfto412.464Za share from $331.80 and by reducing
capital represented by common stock without par value.to $3.92 from $10.
This action is doemethadvisable according to President David C. Ong,
for the purpose of creating'a surplus and to enable the company to continue
the policy of retirement of its prior preference stock.
-V.136, P. 1393.
United States Steel Corp.
-Unfilled Orders.
See under "Indications of Business Activity" on a preceding
136, p. 1570, 1393, 1039.
page.
-V.
Virginia Iron, Coal & Coke Co.-Earnings.
-
Calendar YearsGross earnings
Net earnings
Other income
a Total income
Bond interest
Rentals, expenses,&c
Net loss
Preferred dividends
• Deficit
1932.
1931.
1930.
1929.
$875.788 $1,325,239 $1,614,381 $2,289,402
22.999
5,178
loss144
54.417
146,122
333.924
239,261
183,315
$169,121
$339.102
$239,117
$237.732
72,295
74,470
77.349
82.290
129,322
158,683
196,394
169.674
S32,496Prof$105.948
$34,626
$14,232
49,895
•
$32,496 sur$56,053
$34,626
$14,232
1737
Balance Sheet Dec. 31.
1931.
1932,
1932.
1931.
Assets
Real estate, plant
Preferred stock___ 1,984.800 1,990,800
& equipment_ _x10,199,803 10.295,255 Common stock_ - -10,000,000 10,000,000
Securities owned__ 3,432,260 3,432,130 1st mtge. bonds_ _ _ 1,440,000 1,468.000
Unpaid vouchers._
68,527
Sales ledger, &c.,
88.414
225,315 Unpaid payrolls_ _ • 12,702
balances
132,037
18.679
206,032 Accts. payable_ _
Bills receivable_ _ _ 218.540
19,777
60.507
Accts. receivable.._
11,825 Res.for workmen's
68,325
Adv. to cashiers &
compens'n liab_
45,487
23,913
24,450
3,330 Bond int. accrued_
23,983
superintendents_
3,145
792,231
31.638 Profit and loss- 768.939
Cash
48,553
258.056
222.466
Inventories
24,985
Deferred charges_
17.508
14,342,641 14,488,568
Total
14,342,641 14.488,568 Total
x After depreciation and depletion $1,812,227.-V. 136. p. 678.
Walgreen Co.-February Sales.
Decrease.
1933
Decrease] 1933-2 Mos.-1932.
-Feb.
-1932.
$726.7031$6,913,378 $8,192,706 $1.279.328
$3,248,414 $3,975,117
The company had 471 stores in operation at the end of February against
473 stores a month earlier and 466 units a year ago.
-V. 136, p. 1039.
Webster-Eisenlohr Inc.-Extends Credit in Moratoria
Area.
President Joseph F. Cullman Jr. announces a 30
-day extension of credit
to all good accounts in cities where banking moratoria have been officially
declared during the time of the moratoria.
"This action." said Mr. Cullman. "is our response to the challenge of
these unusual times. It is an indication of our faith in the sound and
certain future of the United States. We further believe that now is the
time to give tangible evidence of that faith and of our confidence in the
ability of the American people to solve their problems satisfactorily. Feeling that the public should not now be deprived of our products, we are
making them available to our distributors on these unusual terms.
"We trust in this way to do our small share in restoring confidence in
the ability and integrity of American business to continue to function's's
usual."
-V, 135, p. 3179.
Willys-Overland Co.
-To Issue Receivers' Certificates to
Finance Truck Contract:
An order authorizing John N. Willys and L. A. Miller. receivers for the
above company, to issue not more than $600.000 in receivers' certificates
to obtain money for manufacture of 4.400 trucks for the International
Harvester Co. was signed by Judge George P. Hahn in Federal Court
at Toledo. Ohio, on March 3,
Judge Hahn said that orders for the trucks are on hand and that orders
for 2,500 additional trucks have been accepted. Deliveries are to be
made in March, April and May.
The following statement was issued by Mr. Miller as receiver:
"A court order has been approved whereby the Willys-Overland CO.
will continue production of trucks for the International Harvester Co.
Orders on hand are sufficient to Insure operation for several months."
Mr. Miller said that production would begin immediately, providing
employment for from 2,000 to 3.000 at the start and gradually increasing.
The receivers were authorized to use money raised on the certificates
for the purchase of material and to pay all labor costs. Judge Hahn
revampea the order to make it read that there will be no reduction in
wages of workers at the Overland plant.
The money raised is to be kept in a fund separate from all other funds
of the plant and used only for manufacture of the trucks. It will be
necessary to set aside proceeds of the sale of certificates as will be required
in costs of labor performed on the trucks.
Judge Hahn appointed Judge Charles A. Chittenden, as a friend of
the Court, to have charge of the fund raised by the certificates and to
advice the Court. (Toledo "Blade.")
Suspends Operations.
It was announced on March 7 that the company has suspended operations because of the unavailability of funds with which to carry on and
meet its payroll, John N. Willys and L. A. Miller. receivers, announced.
The money Is tied up by the bank holiday.
-V. 136. p. 1581.
(F. W.) Woolworth Co.-February Sales.
1933-Feb.
-1932.
Deer ease.' 1933-2 Mos.-1932.
Decrease.
$16.245.003 $18,793,647 $2,548,644 1832,089.687 $36.785.209 $4,695,522
German Affiliate Expands.
-
The "Wall Street Journal,
"March 6, stated:
"Although It is forbidden to open any new one-priced stores in Germany
until April 1934. special permission has been given by the Prussian Ministry
to F. W. Woolworth Co.. G.m.b.H., an affiliate of the above company
to complete installation of four new stores. This concession was largely
due to the complaint brought by the property owners who foresaw hea,y
losses in case the decree was too strictly carried out. These four new shops
bring total of Woolworth stores in Germany up to 82. Sales are in the
neighborhood of Rm. 50.000.000 a year.
-V. 136. p. 1040.
A.) Young Spring & Wire Corp.
-Omits Dividend.
The directors on March 8 voted to omit the quarterly dividend ordinarily payable about April 1 on the common stock,
no par value. From Jan.2 1932 to and incl. Jan. 3 1933, the
company made quarterly distributions of 25e. per share on
this issue as compared with 50e. per share on Oct. 1 1931 and
75e. per share each quarter from July 2 1928 to and incl.
July 11931. A 25% stock dividend was also paid on Aug.
15 1929.-V. 135, p. 3014.
CURRENT NOTICES.
-B.B.Kinloch and Daniel E.Huger Jr. have formed the firm of Kinloch
Huger & Co.to conduct a general investment securities business,specializing
in South Carolina municipals, at 32 Broad Street, Charleston. S. C Mr.
Kinloch has been operating as an individual bond dealer since July 1 1932
and prior to that was with the South Carolina National Bank. Mr. Huger
was formerly Assistant Cashier of the South Carolina National Bank,
resigning on March 1 to form the above partnership.
-Announcement has been made by S. J. T. Straus of the formation of
Straus Securities Co., Inc., with offices at 60 Wall Street, to conduct a
general security business dealing in real estate securities. municipals, public
utilities, industrials, bank stocks. &c. Associated with Mr. Straus in the
new company will be Nicholas Roberts and other executives and members
of the staff formerly associated with S. W. Straus & Co.
-Frank C. Hettinger, formerly syndicate manager of Distributors'
Group, Inc., has been elected a Vice-President of Rackliff, Whittaker &
Co., and will be in charge of the wholesale distribution of the shares of
First Commonstocks Corp., a restricted management investment company
originated and sponsored by that organization. Mr. Hettinger has been
associated with Distributors' Group, Inc., as syndicate manager since
March 1930.
-The Empire Trust Co. has been appointed transfer agent of American
Royalties, Inc., ownership certificates, series A.
-Munds,Winslow & Potter have prepared for distribution a comparative
analysis of bank and insurance stocks.
-Walter H. Winfield has joined the trading department of Van Aistyne,
Noel & Co., 52 Broadway, New York.
Financial Chronicle
1738
March 11 1933
The Commercial Markets and the Crops
COTTON-SUGAR-COFFEE
-GRAIN-PROVISIONS
-METALS
-DRY GOODS
-WOOL
-ETC.
PETROLEUM-RUBBER-HIDES
COMMERCIAL EPITOME
The introductory remarks formerly appearing here will now be
found in an earlier part of this paper immediately following the
editorial matter, in a department headed INDICATIONS OF BUSINESS ACTIVITY.
Friday Night, March 10 1933.
-With the New York Coffee and Sugar ExCOFFEE.
change closed because of the banking moratorium trading
in spot coffee has been in great measure restricted.. On the
4th inst. business in the cost and freight market was reported
at 8.20c. for basis fours. Spot quotations with basis Santos
4s at 9 to 9%e. were largely nominal. Coffee in common
with other commodities is expected to feel the spur of partial
inflation upon the reopening of the Exchange. On the 6th
in the absence of future trading spot quotations were firmer
in the New York market. Santos 4s were quoted at a basis
of 9% to 9%e. and Rio 7s 8% to 8%c. The demand was
4
from roasting sources and in some instances 93 to 10e. were
asked for the best grades. Cost and freight prices were from
10 to 20 points higher, Santos 4s being quoted at 8.30 to
8.60c. and Victoria 8s 7.25e. for prompt shipment. The
National Coffee Council during the week ended March 4th
withdrew 9,000 bags of Rios,26,000 bags of Santos and 3,000
bags of Victorias. Thirty-nine hundred bags were cleared
from New Orleans for Victoria and 400 bags for Houston
from the same port. On the 7th spot coffee held firm with
an improved demand. A large amount of basis Santos 45
were reported to have sold in the shipment market at 8.40c.
4
They were quoted on the spot at 9% to 93 c. Colombian
grades were strong. The sizable volume of cost and freight
business done recently was reported to have been financed
through the Bank of Brazil. Purchases by local interests
•were made in Brazilian funds at prices fixed by the Bank of
Brazil which is understood to have established corresponding
credits here. Nominal quotations were: Maracaibo Trujillo,
93% to 10; Cucuta fr. to g'd, 10% to 11%; pm. to ch., 11%
4
4
to 113 ; washed, 11 to 11%; Colombian, Oea,na, 93 to 10;
4
Bucaramanga, natural, 10 1-3 to 103 ; washed, 10% to
103 ; Honda, Tolima and Giradot, 10% to 10%;" Medellin,
4
4
10% to 103 ; Mandheling, 25 to 30; Genuine Java, 19 to
21; Robusta, washed,8% to 8%; natural,8 to 8%; Mocha,
12% to 13; Harrar, 11% to 12; Abyssinian, 10% to 11;
Manizales, 10 to 10%; Armenia, 10% to 10%; Mexican,
washed, 11 to 12; Surinam,8% to 8%; East India, Ankola,
4
20 to 28; Guatemala, good, 10% to 10%;Bourbon,93 to 10.
On the 8th trading in spot coffee remained quiet with
4
Santos Bourbon 4s quoted at 93 to 10c. and Rio 7s at 8%c.
A small amount of Medellins sold as high as 11%e. while
250 bags were reported to have sold at 11%c. There was a
fair business in cost and freight coffee on the basis of 8.30
to 8.50 for Santos 4s. The former price was quoted for
prompt shipment and the latter for immediate. Offerings
were unchanged. For prompt shipment Santos Bourbon 2-3s
at 8.70c. to 9.20e.• 3s at 8.55e. to 8.90c.• 3-4s at 8.50s to
'
8.60c.; 3-5s at 8.30 to 8.60c.• 4-5s at 8.25e. to 8.30c.; 5s at
8.25c. to 8.400.; 5-6s at 8.100.; 6s at 7.95c.; Peaberry 2-3s
at 9c.; 4s at 8.45c.; and 5s at 8.40c. According to a cable
from Rio to the Coffee & Sugar Exchange here 10,000 bags
of government coffee has been reverted to the Santos stock.
On the 9th trade continued on a moderate scale with recent
prices maintained. Santos 4s were quoted at 9%c.,Medellins
sold at 11 Yo., Giradots at 11c. and Manazales at 10% to
103 e. In the cost and freight market Santos 45 were 8.40
4
to 8.60c., Victoria 7-8s, 7.30c. both for prompt shipment.
Recent purchases of a sizable amount in the cost and
freight market are reported to have been by roasting interests.
Arrivals at New York totaled 56,400 bags of Santos, 10,700
of Rio and 5,000 from Angra dos Reis. Warehouse deliveries
of 15,421 left stocks of 324,448. To-day the markets for
Brazilian coffees were quiet. Higher cost and freights
caused a falling off in the demand. A good inquiry was reported for Santos coffees grading 5s, 6s and 7s, but they are
said to be difficult to obtain in strictly soft descriptions.
COCOA.
-The market was closed for the duration of the
banking holidays. There was a good demand for cocoa
beans on the 6th inst. with both manufacturers and speculative interests buying both spot and forward shipment at
prices said to be % to 4c. higher. Costa Rican sold at
3
4 to 4%c., superior Bahia at the same levels; Accra at 4e.;
Sanchez at 3.85c., and Arriba at 7%c. Offerings increased
however on the advance. Sales were estimated at 10,000 to
15,000 bags. Later the tone was easier in the spot cocoa
market. Bahia grades were said to have sold at 3.85e. as
against a top price on Monday of about 4%c. Accra was
offered at 3.95c. for spot. A fair demand was reported in
the spot market on the 9th inst. mostly for Bahia grades
with prices 3.78 to 3.82. To-day the market was steadier
at 3.85.
SUGAR.
-The spot market for sugar on the 4th advanced
3 points to 2.90o., the highest of the year even though the
closing of the New York Coffee and Sugar Exchange pre-.
vented trade here in futures. The American Sugar Refining
Company is reported to have bought a cargo of Cubas for
prompt shipment and the National Sugar Refining Co.
5,000 bags of Porto Ricos also for prompt shipment. In
spite of the banking moratorium refined sugar is expected to
advance in price provided that refiners are able to supply
requisite credit facilities or in the event of banking conditions clearing up sufficiently to allow the usual financing of
sugar purchases within a reasonably short time. London
prices on the 4th held at the previous levels in the terme
market. Prices there were reported unchanged to %d
higher. With the future markets closed there was increasing
interest and activity in spot raw sugar which sold as high as
lc. A Philadelphia house is reported to have paid that
price for a cargo of 25,000 bags of Cubas for prompt shipment
c.i.f. Several other cargoes were reported to have been sold
to large refiners at the same price. The Pennsylvania Sugar
Refining Co. after the 10-point advance in raws, stated that
they would advance their refined price to a 4.10c. basis.
All other refiners were still quoting 3.90. Trading in the
London sugar market was suspended until further notice
but closing quotations there were unchanged for spot March
and % to 13 d lower on later months. Havana reported
4
a3
-day bank holiday declared by President Machado Sunday
as the suspension of business in New York had resulted in
large withdrawals there. The weekly Cuban sugar movement was as follows: Arrivals: 70,520, exports 17,039,
stock ports 735,647, grinding 123. Exports: to New York
1873, Philadelphia 4582,Charleston 3603, Miami 37, United
Kingdom, 8934. The market closed with Cuban raw sugar
10. duty free 3o., refined 3.90c. to 4.10c.
On the 7th raw sugar advanced on the spot to a basis of
3.050. delivered, representing a gain of 20 points in price from
the opening of last Friday. Some refiners moved their
quotations from 3.90c. to 4c. or 4.10c., although others continued the 3.90e. price. There were reports to the effect
that a cargo of Cubas for the first half of April shipment
sold yesterday at 1.03c. One prominent interest advanced
his asking price to 1.10e. for Cubas but this appeared to be
an isolated case. The National is reported to have bought
28,000 bags of Cubas for the first half of April shipment at
1.050. c. & f., 25,000 bags for the second half of March
shipment at 1.05c., 6,000 bags of Porto Ricos early April
shipment at 3.05c. 2,000 bags of Philippines mid-April
arrival at 3.05c., 15,000 bags of Cubas second half of March
arrival at 1.03c. and 4,200 tons of Porto Ricos late March
shipment at 3c. American was reported to have bought
2,800 tons Philippines late March shipment at 3e. According to dispatches from Havana the Cuban banking holiday
was continued to Thursday morning with all exchanges
closed. It was announced that all banks in the Philippines
will continue open. The banking situation was eased somewhat by the Treasury regulations regarding the financing of
food or feed products. It is understood that national banks
here have begun to handle sugar shipments again.
On the 8th the other principal refiners who were still
maintaining a price of $3.90 advanced it to 4.10e. Business
for shipment or delivery within seven days with a 2% allowance for cash was the general selling policy assumed by the
trade. Although prices remained- at the recent high levels
trading in raws was quieter. Part cargoes of Porto Ricos
and Philippines were offered at 3.05e. a cargo of Porto Ricos
at 3.07c. and March-Apr. Philippines at 3.10e. A scarcity
of cargo space from Cuba was reported to have developed
recently as a result of the large business and freight rates
were reported to have been increased about 3c. from Cuba.
A Havana dispatch said: "Sugar production in Cuba for the
present season up to Feb. 28th totaled 625,993 tons compared
with 1,196,449 tons in the corresponding 1932 period." The
London market was quiet and steady with the asking price
55. 1054d. The closing raw quotations 1.050. and 3.05e.
refined, 4.10c. On the 9th sugar was less active and prices
lower. The new price for refined of 4.10c. apparently has
caused a cessation of the demand. The first laid for raws
yesterday was 2.950. which later on was increased to 2.98e.
Cubas were still quoted at lc. duty free 3c., while refined
price was still held at 4.10c. The London terme market was
'
quiet and firm. Cables from Cuba reported that although
President Machado had extended the bank holiday to March
Volume 136
Financial Chronicle
25th Cuban banks were authorized to make payment on
deposits up to 10% and apparently gave them a free rein as
far as handling sugar from production all the way through to
exportation is concerned. Exports of Cuban sugar from
Jan. 1 to Feb. 25 totaled 121,419 long tons, of which 114,616
tons went to the United States and 6,803 tons to other countries. This compares with 312,804 tons exported in the like
period of 1932, of which 308,520 tons went to the United
States and 4,284 tons to other countries. Available sugar
stocks in Cuba on Feb. 25 was 682,515 long tons, compared
with 1,002,863 tons on Feb. 27 1932. To-day there was no
new developments in raws. Sellers of duty trees were asking
3e. while buyers were said to be bidding 2.95c.
LARD.
-Trading in futures was suspended because of the
bank holiday. Export clearances of lard were 353,000 lbs.,
which were shipped to Continental countries. Liverpool was
Is.to Is. 3d. higher. Cash lard at Chicago wasfirm. Prime,
4.45 to 4.55e.; refined to Continent, 43 c. On the 7th inst.
A
cash prices were lc. higher than Friday's closing. Liverpool
closed 3s. higher and the May delivery rose is. 6d. Lard
exports were 1,268,390 lbs. to the United Kingdom, Holland
and Denmark. On the 8th inst. cash lard markets were very
firm and were nominally quoted at about Me. over last
Friday's prices which makes the cash price 4.87c. and the
loose lard 4.37c. Liverpool was 2s. to 2s. 3d. higher. Exports were 31,640 lbs. to Rotterdam. On the 9th inst. cash
markets were firm with values nominally unchanged. Liverpool closed Is. to is. 6d. lower. Exports were 56,795 lbs.
to Oslo, Bergen and Marseilles. Lard products were steady;
refined to Continent, 5Mc.; South America, 5 Mc.
HOGS on the 4th inst. closed steady, and in some cases
higher than on Friday. Total receipts for the Western run
were 27,500, compared with 28,000 for the same day last
year. At Chicago, the bid was up from $3 on Friday to
$3.60 on Saturday. The Buffalo market was also strong.
On the 6th, the price of hogs at Chicago advanced 10 to 15e.
Most sales there were at $3.75 to $4, although the top was
$4.05. Light lights, lightweights and medium weights were
quoted at $3.85 to $4; heavies, $3.70 to $3.90, and packing
sows $3 to $3.50. Receipts were 26,000, packers bought
21,000 and shippers 3,000. It was announced that the
directors of the Chicago Live Stock Exchange had decided
to close the market at 3 p. m. on Tuesday and keep it closed
until further notice, owing to the inability to evolve an adequate financing plan for payments. On the 7th, the Chicago
Live Stock Exchange canceled its order closing the stockyards for trading after Tuesday and prices for hogs quickly
advanced 25 to 40c. cwt. Only the smaller transactions
were cleared in cash and it was understood that sales made
subject to payment upon reopening of the banks were on
a basis of even 15 to 20c. higher. The highest quoted price
in Chicago was $4.40, which showed an advance of 80e. in
the past week, and is the best price reported there since
Sept. 28 1932. Most sales were at $4 to $4.30, with an
average of $4.15. Light lights were quoted at $4.15 to $4.35,
light and medium weights, $4.25 to $4.40, heavy weights,
$4 to $4.30 and packing sows $3.15 to $3.60. Receipts were
12,000, with 8,000 estimated for to-morrow. Higher prices
were looked for because of the ruling which was to have
closed the Chicago Live Stock Exchange. The interval
between this ruling and its revocation was expected to make
Wednesday's run small.
Contrary to expectations, hog prices declined 15 to 40
points on the 8th and receipts were much larger than expected totaling at Chicago about 18,000. The movement
throughout the West was also large. Most sales were at
$3.70 to $4.05. Light lights and lights $3.85 to $4.15,
medium weights $3.75 to $4.15, heavyweights $3.85 to $4.10
and packing sows $2.90 to $3.45. Packers bought 12,500
and shippers 1,500 with 5,000 left over and 20,000 estimated
for the following day.
On the 9th in the Chicago stockyards hog prices closed at
$3.60 to $3.85, the average decline for the day being 20c. on
unexpectedly heavy receipts. Light lights were $3.50 to
$3.75, lightweights $3.65 to $3.85, medium weights $3.60 to
$3.80, heavy weights $3.40 to $3.65 and packing sows $2.75
to $3.30. Packers bought 23,500 and shippers 1,500 with
3,000 left over. Receipts were 23,000 with 15,000 estimated
for to-morrow.
To-day the market at Chicago closed fairly active with the
top $4.00.
PORK, steady; mess, $14.25; family, $15.50; fat backs,
$11 to $13.50. Beef, steady; mess, nominal; packet,
nominal; family, $10.50 to $11; extra India mess, nominal.
Cut meats, quiet; pickled hams,4 to 6 lbs., 53/2e.• 6 to 8 lbs.,
53c.;8 to 10 lbs., 5Mc.; 14 to 20 lbs., 834c.; 22 to 24 lbs.,
80.• pickeled bellies, 6 to 8 lbs., 8%c.; 8 to 10 lbs., 83c.;
'
10 to 12 lbs., 73'2c.; bellies, clear, dry salted, boxed, New
York, 14 to 20 lbs. 5%c. Butter, creamery, firsts to premium marks and higher score than extras, 19 to 20c. Cheese,
flats, 12 M to 18e. Eggs, mixed colors, cheeks to special
packs, 123/ to 17 Mc.
OILS.-Linseed was more active and higher at 7.6e. for
carlots. In some sections of the trade the usual 2 points
concession prevailed. Domestic meal was $2 higher.
Winnipeg was higher on the 9th inst. Lard, prime, 83'e.;
extra strained winter, 73/20. Cod, Newfoundland, 21c.
Turpentine,46% to 51%e. Rosin,$2.75 to $5.30.
1739
COTTONSEED OIL market was closed for the banking
holidays. Sentiment was better however, with lard products and hogs reported firmer.
-The Texas Co. lowered Gulf Coast
PETROLEUM.
crude 10c., Carson and Hutchison counties 13c. and Gray
County 8e. Leading refiners discontinued the practice of
allowing a concession of 100. a barrel to ocean going ships
under contract. The market was firm at 75e. New York
Harbor refineries. Diesel oil was steady at $1.65 refinery.
Domestic heating oils were in somewhat better demand.
Rumors were current of an impending advance in gasoline
locally and in New England but confirmation was lacking.
Reports earlier in the week that New Jersey and Pennsylvania prices were to be increased failed to materialize.
Kerosene demand was confined mostly to limited quantities
to fill immediate needs. Water white in tank cars was steady
at 53e. at refineries. Lubricating oils were in better demand
and steady. Export business however, was still small.
Tables of prices usually appearing here will be found on an earlier page in
our department of"Business Indications," in an article entitled "Petroleum
and Its Products."
RUBBER:
-The Rubber Exchange here was closed on the
4th for the duration of the bank holiday and the lack of
foreign exchange quotations practically prohibited foreign
business. C. i. f. offers from abroad were reported unchanged but no new prices were established on the standard
grades. On the 6th rubber trading was practically at a standstill. Sterling quotations were unobtainable, making the
computation of the equivalent of c. i. f. orders impossible.
It was reported that a private transaction had been made in
sterling at $3.55. London closed dull with a net decline of
1-32 to Md. Singapore closed 1-32 to 3-32d. higher than
Saturday. London rubber stocks on March 4th were 38,303
tons, an increase of 700 tons. Liverpool stocks 53,850 tons,
an increase of 895 tons. Unofficial estimates were for an
increase of 500 tons at London and 700 tons at Liverpool.
On the 7th the market was largely a repetition of the previous
day although business was reported to have taken place in
limited quantities at somewhat higher prices. London
closed 1-16d. higher on March, Apr.
-June and July-Sept.
Singapore also advanced 1-32d. on the more active months.
The Rubber Trade Association of New York ordered that
there be no trading in rubber in the local spot markets. On
the 8th business continued flat with practically nothing reported done here. London was higher at the opening, but
reacted later and the close was unchanged. Singapore ended
1-16d. up. Business was still confined on the 9th to the
outside trade with the spot price nominally 3y
2c. London
closed 1-32d, lower to 1-32d. higher, Singapore was unchanged. Shipments offered from the East were 2 1-32d. for
No. 1 sheet in bales. To-day London closed quiet, unchanged to 1-32d. higher; March,23/8d.; April-June,23-16d.;
July-Sept., 234d.; Oct.
-Dee., 2 11-32d.; Jan.-March,
2 13-32d. Singapore ended dull at an advance of 1-32d.;
March,1 25-32d.; April-June, 1 13-16d.; July-Sept., 1 27-32d.
Stocks in England for the week ending March 11 are expected to show little change. London's expected increase
of 300 tons is offset by a probable decrease of a like amount
at Liverpool.
HIDES.
-Trading in hides was suspended on the 4th for
the duration of the bank holiday. The spot market was
quiet and featureless, although recently there has been a
more active inquiry from tanners. On the 6th, there was
practically no trading in spot hides nor were any quotations
furnished, although the general feeling in the trade was
that prices would advance upon the resumption of business.
No sales of imported hides were reported in the absence of
any foreign exchange quotations. The 7th was largely a
repetition of the preceding day as far as local activity was
concerned. Inquiries however increased. The position of
the hide market is conceded to be strong with limited stocks
held by packers and the general feeling was that higher prices
would prevail as soon as conditions approached normalcy
again. Four thousand Argentine hides were reported to
have been purchased by Europe at unchanged prices. In
the absence of offerings here there were no quotations given
out. By the 8th inquiries had increased considerably, and
it was reported that a full cent a pound higher than Friday's
closing prices had been bid. Packers, however, on account
of low stocks were not inclined to make offerings. Eight
thousand hides were reported sold in the Argentine, although
the price was not given. The South American market was
reported to be firm and broadening. Meanwhile, tanners
here are showing more interest. On the 9th the hide situation remained about the same. There were reports of some
business done in Chicago at a cent a pound above last Friday's closing. The River Plate market was firm and higher
for the week. Quotations were: Packer hiders, native steers,
43/2; Butt brands, 43/2; Colorados, 43; Chicago light native
cows, 43/2; New York City clafskins, 9-12s, 1.10- 1.20,
7-9s, 65-75c., 5-7s, 55-60e.
-Early in the week rates were
OCEAN FREIGHTS.
lower. West Indies round-trip rates were up 35 to as much
as 100% later owing to the advance in the price of sugar.
A heavy tonnage was done in sugar.
CHARTERS included sugar-March, Cuba, United Kingdom-Conti1,
nent 15a.; Cuba, April. 10, Marseilles 15s. 641.; Santo Domingo, March,
United Kingdom-Continent 13s. 9d.; Cuba, March, United KingdomContinent 14a. fid.; Cuba. first half April, United Kingdom-Continent 14s.
9d. Trips.
-West Indies round $1.20; prompt West Indies, round $1.;
West Indies round 70c.; Scrap Iron.
-Atlantic Range. April, West Italy
1740
Financial Chronicle
52.95. Tankers.
-lubricating oil. North Atlantic, Liverpool, London
103.9d.:clean, Gulf to one Belgian port, 9s.. March.
TOBACCO.
-At Mayfield, Ky., with the exception of the
Clarksville and Springfield markets, practically all Southern
markets showed a lower average. Heavy deliveries were
reported at all points. Sales for the past week were as
follows: Mayfield, 693,960 lbs., average $3.55 or 54c. lower
than the preceding week. Paducah, 187,770, average
$3.12, 27e. lower. Murray, 252,740, average $4.29, 2c.
higher. Hopkinsville, 1,146,435 of dark, average of $4.91,
and 54,810 of Burley, average $3.83; dark, 68e. and Burley,
$2.41 lower. Clarksville, 1,808,055 at an average of $6.85,
97e. higher. Springfield, 1,499,280 averaging $7.93, 17e.
higher. Owensboro, 1,084,840 of dark, average $3.12 and
257,640 of Burley, averaging $5.80. dark, 56c. and Burley,
50c. lower. Henderson, 327,470, average $3.19, 25c.
lower. Lynchburg, 280,788 averaging $7.60, 3c. lower.
Blackstone, 339,721 at an average of $7.52, 2.52 lower.
Farmville, 191,000 averaging $7.40, $1.12 lower. Withdrawals of all classes of domestic cigars during the first seven
months of the fiscal year 1933 decreased 15.61%, according
to figures released by the Department of Internal Revenue.
Prom 3,050,770,342 cigars withdrawn during the first seven
months of the fiscal year 1932 the amount dropped to 2,574,584,289 in this Year's period, a decrease of 476,186,053.
Stocks of leaf tobacco in the United States owned by dealers
and manufacturers amounted to 2,142,914,000 pounds on
Jan. 1 1933, compared with 2,012,780,000 on Jan. 1 1932,
says the Department of Agriculture. This is an increase in
the total stocks of 130,134,000 over the stocks of a year
ago, Jan. 1. The increase during the same period of the
previous year, namely from Oct. 1 1931, to Jan. 0 1932,
amounted to 171,683,000. Stocks of American-grown cigar
filler types, including Puerto Rican, amounted to 176,847,000 pounds on Jan. 1 1933, compared with 043,394,000
pounds on Jan. 1 1932, an increase of 33,453,000 over the
holdings of the previous year. This increase is in types,
40, 42 and 43. Type 46 shows a decrease of about 7 million
pounds. Total filler stocks show a normal decrease during
the fourth quarter of about 11 million pounds. The cigar
binder type stocks were 7,628,000 pounds higher on Jan.
-1 1933, than they were at the beginning of the previous year.
Total binder stocks were reported as 189,806,000 pounds
on Jan. 1 1933. The detailed report by groups of grades
'shows that of the total stocks reported 3,622,000 pounds are
of wrapper quality, 67,629,000 pounds are binders, 14,363,000 pounds are fillers and 103,972,000 pounds are stemming
grade or X group tobacco. Shade-grown wrapper stocks,
types 61 and 62, were only slightly higher than a year ago.
Total shade stocks were reported as 16,099,000 pounds.
• COAL.
-Owing to mild weather partly and also of course
to the banking restrictions, trade has fallen off.
- SILVER. -Trading in futures was closed with other commodity and security exchanges due to the bank holiday.
London's price advanced 1-16d. to l73d. on the 4th inst.
On the 6th inst. the London quotation was 17 11-16d. and
the price given out by Handy & Harmon at New York was
293c. as against 273c. at the end of the week. Handy &
Harmon issued a statement as follows: "In accordance with
-the President's proclamation all trading in silver in the New
York market has been suspended. However, in order to
,provide a price basis for the settlement of normal commercial
transactions covering the use of silver in the arts and industries we will quote daily until further notice a New York
official price. On the 7th inst. bar silver was 3,4e. lower at
2954o. at New York while London was 3-16d. higher at
177d. On the 8th inst. bar silver declined No. here to
%
293 e. but London was Md. higher at 18d. The New York
price of bar silver on the 9th inst. was increased %c. to 30e.
while London was advanced 7-16d. to 18 7-16d.
)
COPPER advanced %c. to 53'c. This price was actually
paid in a few cases for shipment over the first half of the year.
The European market was quoted at 5.10 to 5.123o. Sales
abroad on the 9th inst. were 100 tons. France was the best
buyer. Most of the demand locally was for small quantities
mostly for shipment in March and April. The Revere
Copper & Brass, Inc., announced an advance of Me. in all
descriptions thus meeting the recent action of the American
Brass Co. In London on thel9th inst. standard advanced
7s. 6d. to 428 10s. for spot and £28 15s. for futures; sales 250
tons of spot and 625 tons of futures. Electrolytic was up
5s. to £32 5s. bid and E32 15s. asked.
1TIN advanced to 253/20. but very little business was
transacted. London on the 9th inst. advanced 12s. 6d. on
standard to .£148 17s. 6d. for spot and £149 10s. for futures;
sales 20 tons spot and 230 tons of futures; spot Straits up 5s.
to £154 12s. 6d.; EasternIc. i. f. London dropped 10s. to
£152 15s.; at the second London session spot standard advanced 15s.; futures rose 10s. on sales of 30 tons of spot and
70 tons of futures.
M LEAD was advanced3d3.25c. New York and 3.125e. East
St. Louis with the demand active. Total stocks of lead in
the United1States'on Feb. 1 were 270,433 short tons against
263,296 tons on Jan. 1;and 227,233 tons on Feb. 1 1932,
according •to the American Bureau of Metal Statistics.
-World lead production in • Jan.gtotaled 104,809 short tons
against 104,214 tons in Dec. and 122,092 in Jan. 1932.
United States production in Jan. was 24,615 tons against
21,173 tons in Dec. In London on the 9th inst. spot was
March 11 1933
up 58. to .£11 2s. 6d.; futures rose 3s. 9d. to £11 5s.; sales 100
tons of spot and 650 tons of futures.
ZINC was advanced to 3e. East St. Louis which marks a
rise within about 10 days of $9 per ton. Sales for the week
ended Mar. 4 were estimated at 1,700 tons. In London on
the 9th inst. spot advanced 2s. 6d. to £14 13s. 9d.• futures
unchanged at £14 15s.; sales 500 tons of futures; at the second
session prices were up is. 3d. on sales of 125 tons of futures.
STEEL.
-Although the decline in steel operations to
about 15% of capacity last week was expected to some
extent, this week opened with the outlook for a further
decrease. Ever since the bank holidays began in the middle
of last month activity has been slackening in the automotive
industry, which has been the main reliance of the steel trade
for some- time past. The steel ingot production in the
United States advanced in February for the second successive
month, according to the monthly report of the American
Iron & Steel Institute. As a result, February output was
20.39% of capacity, against 17.78% in January and 15.02%
in December, and was the highest since the 22.02% rate
reported in April last year. Steel scrap advanced 25e. at
Pittsburgh, now being $8.50 to $9, the possible forerunner
of some increase in steel operations some think.
PIG IRON has remained quiet. Hardly anything else
could be expected in these times and prices were still for the
most part nominal.
WOOL was quiet and generally unchanged. Liverpool
cabled on Mar. 7 that the East India wool auctions opened
to-day to a slow competition. Prices ranged from 5 to 10%
below levels ruling at the last sales. The offerings were
principally of medium grade and trading was dull throughout.
The Bureau of Agricultural Economics in its review of the
Boston market says it is open for trade as usual, but manufacturers generally are showing little interest. In a few
cases, however, requests have been made for options on spot
offerings, but actual business is at a standstill. Receipts
of domestic wool at Boston during the week ending Mar. 4,
estimated by the Boston Grain & Flour Exchange, amounted
to 144,800 lbs., compared with 189,800 lbs. Major eastern
ports during the week ending Mar. 4 amounted to 207,314
lbs. Total imports of carpet grease wool at the three major
points for the week amounted to 899,328 lbs. The Bureau
of Agricultural Economics said of the Boston market:
"Quotations on the finer grades of territory wools are inclined
higher with some advances in asking prices amounting to 10%
over last week. While a substantial portion of this advance
has been realized in isolated cases, many offerings continue
available at steady to only slightly higher prices than were
obtainable a week ago. Some houses are withholding offerings at present. Eastern grown fleece wools are showing less
fluctuation in quotations than territory and other western
wools."
WOOL TOPS futures trading here was suspended because
of the banking situation. At Antwerp early on the 8th
inst. wool tops futures were unchanged to 30. higher,
with March, 21%d.; May, 22d.; July, 22'%d., and Sept.,
223/d.; sales, 195,000. Early on the 9th inst. Antwerp
2
was unchanged, with March 213 1d.; May,22d.;July,2230.,
/
and Sept., 223'd.; sales, 180,000.
SILK.-Trading in futures here on the 4th inst. was suspended for the bank holiday. Yokohama futures were 5 yen
to 13 yen higher on Saturday and Kobe bourse prices 1 lower
to 18 higher. Seriplane silk and Grade D showed a 5
-yen
advance. Cash sales, 555 bales, and futures transactions
on the two exchanges combined 1,365 bales. The yen was
up Mc. in Yokohama to 213'e. The exchanges at Yokohama and Kobe were closed on the 6th and 7th inst. On the
8th inst. it was reported that these exchanges will reopen
late Friday afternoon. Dealers look for sharply higher
prices when the exchange reopens here.
COTTON
Friday Night, March 10 1933,
THE MOVEMENT OF THE CROP, as indicated by our
.
telegrams from the South to-night, is given below. For the
week ending this evening the total receipts have reached
72,119 bales, against 101,012 bales last week and 122,.954
bales the previous week, making the total receipts since
Aug. 1 1933 7,212,099 bales, against 8,488,920 bales for the
same period of 1932 showing a decrease since Aug. 1 1932 of
1,276,821 bales.
Receipts at-
Sat.
Mon.
Tues.
Wed.
Thurs.
Fri.
Total.
1,883 3,337 4,514 3,637 1,958
Galveston
183 15,512
Texas City1,884 1,884
1.842 2.581 4,785 2,182 1,592 7,276 20,258
Houston
32
235
486
85
____
47
87
Corpus Christi
1.608 2,849 3,537 14,574 5,928
729 29,225
New Orleans442
201
380
Mobile
86 1,775
666
Jacksonville
1
75
474
166
Savannah
54
93
83
3
458
336
80 1,049
Charleston
---175
____
____
____
____
____
456
456
Lake Charles_ _
101
28
10
35
Wilmington
13
13
2
____
317
114
93
91
10
Norfolk
9
581
581
Baltimore
1
Totals this week_
5,710
9.895 13,721 20.925 10.504 11.364 72,119
The following tab e shows the week's total receipts, the
total since Aug. 1 1932 and stocks to-night, compared with
last year:
Volume -136
Financial Chronicle
-
1741
COTTON has advanced in Liverpool and other foreign
markets, but the bank holiday in this country and its indefinite continuance by President Roosevelt's proclamation
This Since Aug This Since Aug
1932.
1933.
Week. 1 1932. Week. 1 1931.
yesterday has, of course, stopped trading in futures and
greatly restricted business in spot cotton. The attitude of
15,512 1,729,804 34,709 2,104,607 752,607 862,896
Galveston
70,329
50,053
the cotton trade at home and abroad is a waiting one, but
Texas City
1,884 214,585 6.287 214.172
Houston
20,2582,471.701 34.376 3,013,062 1,741.614 1.532,985
3
4
some spot business has been done here at prices / to lc.
78.035
78,584
486 285,276 1,436 422.314
Corpus Christi
above those of last week. The trade pretty generally looks
24,533
17,086
28,494
Beaumont
29,225 1,533,787 63,158 1,559,573 1,009,645 1,087.805
New Orleans
for higher prices when free trading is resumed.
606
Gulfport
On the 4th inst. the declaration of the banking holiday
Mobile
1.775 258,715 7,647 392.429 146,268 222,320
54,166
32,124
115,424
912
Pensacola
closed the New York Cotton Exchange to future trading,
16,952
25,562
10,136
8,333
281
Jacksonville
1
the New Orleans Exchange having previously closed on
474 127.177 5,899 292,447 158,650 277,552
Savannah
28,228
Brunswick
35,696
account of the banking holiday already prevailing in Lou130,332
Charleston
622 106.518
51,200
1,049 138,273
isiana. Only two Southern spot markets sent in reports.
74,650
62.139
456 150,192 1,471 131,360
Lake Charles
25,490
18.741
Little Rock quoted middling at 6c., and reported sales of
Wilmington
48,163 1.073
46.119
101
66,477
59,437
53,171
Norfolk
317
44,693
564
127 bales. Memphis was quoted at 6.05, with sales of 6,307
8,889
-___
Newport News
bales. Receipts here were 100 bales. Spot cotton in Liver198,980 208,164
New York
18,336 • 12.011
Boston
60
825
•
pool was dull. Futures were steady there and 2 to 3 penny
2,232
2.593
Baltimore
206
21,014
581
12,491
points up. All the other foreign markets showed advances.
5,213
Philadelphia
1
The Smith Cotton Relief Bill was killed by a pocket veto.
Totals
72.119 7.212.099 158.701 8 488 920 4.426.273 4.854.544
Another constructive feature was the reported plan of the
In order that comparison may be made with other years, Roosevelt Administration to handle all matters pertaining
to farm relief under a single head. The cloth market became
we give below the totals at leading ports for six seasons:
more active, the demand being ascribed to banking conditions and prevailing prices.
Receipts at- 1932-33. 1931-32. 1930-31. 1929-30. 1928-29. 1927-28.
On the 6th inst., with the New York and New Orleans
22,722
32,975
10.634
15,704
34,709
15.512
Galveston--_ _
Exchanges closed, the cotton trading here was in Liverpool,
12,364
22,033
12,614
17,828
34,376
20.258
Houston
17.465
30.279
11,788
27.264
63.158
29,225
New Orleans_
where prices fell 12 to 16 English points. Alexandria de2,814
6,013
2.396
12,069
7,647
1,775
Mobile
clined 40 to 45 points, and there were intimations that a
8,567
3,909
2,312
9.954
5,899
474
Savannah_ __ _
rule was adopted by the Exchange there limiting a decline
Brunswick _
1,397
555
1,872
2,805
622
1,019
Charleston_ _ _
to 50 points in a single day. Here there were hints that
3.431
3,417
107
1,746
1,073
101
Wilmington _ _
similar action may be taken upon reopening if circum1,159
2,215
689
1,109
564
317
Norfolk
N'port News
stances seem to warrant it. Cotton goods here were tend4.954
3.315
2.507
4,998
10,653
3,408
All others_ _ _ _
ing upward. In fact, some print cloths were reported ad73.234
44,919 106,350
93.477
72,119 158,701
Total this wk.
vanced / to %c. Spot cotton at Memphis was said to have
3
4
sold in small speculative transactions at as high as 8c. for
7 21 2 090 R 488 920 75194.175 7.440.168 8.303.359 7.168.963
51inow Alm 1
,
/
3
4-inch. On Saturday, in parts of the South, spot cotton
The exports for the week ending this evening reach a total was rumored to have sold in speculative trading at an
of 176,673 bales, of which 26,516 were to Great Britain, advance of 1 to 2c., but this was difficult or impossible to
4,692 to France, 33,397 to Germany, 27,662 to Italy, nil to confirm. In Dallas, on the 6th inst., spot /
3
4
-inch cotton
Russia, 59,411 to Japan and China, and 24,995 to other
was wanted at slightly above the closing price for May on
destinations. In the corresponding week last year total Friday, which was 6.26 to 6.27c. here. The spot situation
exports were 170,272 bales. For the season to date aggre- was difficult to define in the present state of affairs. Livergate exports have been 5,816,082 bales, against 6,146,100 pool cabled the Cotton Exchange: "Liverpool futures
bales in the same period of the previous season. Below are erratic. Trading narrow and difficult owing to inability
the exports for the week:
to cover exchange. Market inclined to expect rise in sterling
to near $3.80. Some American selling absorbed by scale
Exported t07.
down buying limits. Spot business in all growths very
• Week Ended
modest." The New York Cotton Exchange Service said:
Japan&
Ger%larch 10 1933. Great
Exportsfrom- Britain. France. mang. Bak. Russia. China. Other. Total.
"At Manchester yarn and mill order lists are running down.
--r-__
Price-cutting was severe, and margins have fallen to un---- 28,259 3.127 52,880
Galveston
2,586 1,947 5,395 11,066
---- 31,152 10.699 71.968
____ 8,325 10,976
remunerative levels. Complaints of severe Japanese com10,816
Houston
8,102
--------1,075
726
Texas City
3,702
---- 2,599
petition continue. The intensification of military operations
--------9,228 40,603
8,853 2,656 15,103 4,758
New Orleans
in northern China has put a further restriction on trade
----------------479
Lake Charles __ 284
____
195
------------136
--__
____
____
136
Jacksonville_ --with Chinese markets. It was reported that Germany plans
749
Pensacola
to levy drastic duties on imports of textiles. The tense
Savannah
390
50
------------816 1,002
Charleston
186
political situation in Germany checked enterprise in ContiNorfolk
275
nental markets. English mill activity is tending to decline
Total
26,516 4,692 33,397 27,662
____ 59,411 24.995 176,673
slowly, but it Is still far above the low level of last summer,
and forwardings of American cotton to Lancashire mill
Total 1932
24,955 14,493 54.077 5,939
____ 56,824 13,984 170,272
Total 1931
11,554 14.198 28.010 8.200
____ 63.730 24.042 154.784
centers have recently geen equal to those at this time last
season. Continental mill centers report that a modest
From
Exported to
volume of yarn and cloth business is passing-enough to
Aug. 1 19321
Mar.101933. Great
GerJapan &
sustain present restricted output in some countries but not
Exports Jr
Britain. Frame. many. Italy. Russia China. Other. Total.
enough to balance current production elsewhere. Mill
Galveston- __ 193.381 174,103 204,568,139.711 ---- 490.109240.589 1,442.461
activity continues very irregular, with little change on the
Houston_ ___ 210.19927,5.420 391.862 150,034 ____ 376.381 271.786 1,710.632
average. German mills are still losing ground. With the
corp. Christi 30.522 60,085 39,462 18,803 ---- 80.414 35.588 264,874
48,356 16,981
political situation highly uncertain, new buying is inadeTexas City__
47,159 2,901 ---10,073 19.654 135.129
Beaumont__
619
2,287
213
570
272
3.961
quate, and efforts of mill managers to agree on a program
El Paso
15.372
15.372
of uniform curtailment have broken down. French mills
New Orleans_ 283,515100,983 243,053167.731 -:-: 311,117 113.889 1,220.288
7,722 25,432 22,739 10.874 --Lake Charles
30,623 10.528 107.918
are barely holding their own as to stocks and unfilled orders,
63,766 12,339 110.269 15.001 ---Mobile
37,442 14,618 253.435
but as they are well supplied with old orders they are main4,144
_ ao
Jacksonville _
3,197
136 ---7,600
24
15,101
1
18,702
Pensacola
47,906 1,324 ____
5,366 2.066 75.494
taining operations. Italian mills are doing relatively well.
4,928
Panama City
7.036
They have recently increased their operations slightly and
84,728 2:350 53.431 6,667 ---Savannah
13,860 5.232 Pik
are in general maintaining their position, although yarn
10.676
Brunswick 17,618 --------5,700 1.702 35.698
59,825
95,515_-_ -Charleston
2,000 8,908 166.248
and cloth markets are very erratic. Spain, Czechoslovakia,
Wilmington
3,508 17,818
1
1,600 22.608
16,413 1,266
Poland, Holland and Finland report poor yarn and cloth
136 -___
Norfolk
5,764
229
43 23,851
506
100
Gulfport _ _ _
606
demand, and extensive curtailment of mill activity. Swedish
1,296
6
169 --------300
New York.-487
2,258
and Danish mill% on the other hand, are running prac320 3.003
Boston
3,323
2,963
188 11,48185,517 7,049 107,178
Los Angeles_
supplied with business." The Inter1,477
-ioo ---- 28,860 442 30,929 tically full and are well
____
50
San Francisco
national Federation estimated world consumption of Amer5,
435
Seattle
440
ican cotton at 6,845,000 bales in the first half-year ended
r-------1,033,736 669,953 1.307,054 566,131 ..__ 1,485,921753.2875,816.082
Total
on Jan. 31, compared with 6,117,000 a year before, while
world mills are estimated to have used 5,042,000 bales of
___ 2.615.443830.6036.146,100
Total 1932_ _ 907,093 291,036 1,190,263505,662
Total 1931-- 910,570831.185 1.351.191 376,783 29:279 1.108.231 554,6825,161,921
foreign growths, compared with 5,431,000. The increase
In addition to above exports, our telegrams to-night also of 728,000 bales in consumption of American staple and a
give us the following amounts of cotton on shipboard, not decrease of 389,000 bales in foreign growths left a total of
11,887,000 bales, against 11,530.000 a year before, a gain of
cleared, at the ports named:
357,000 bales from the aggregate in the first six months
of 1932.
On Shipboard Not Cleared for
On the 7th inst., on heavy foreign buying, Liverpool adGreat
GerOther CoastLeaving
vanced 17 to 20 English points. Alexandria rose 10 points,
- Britain. France. 17161111. Foreign wise. Total. Stock.
Mar.10 at
Havre 10 to 12 points, and Indian 7 points. Spot cotton
8,000 3,000 7,000 21.000 15.000 54.000 698,607
Galveston _ - _ _
at the South was tending upward. Print cloths were active
576 20,486 989.159
Orleans_ _ 6,075 3,817 2,583 7.435
New
at 3% to 3 c. for 381
/
1
2
A-inch 64x60s. Buyers of cloth were
158.650
Savannah
51.200
Charleston_
noticeably nervous, fearing further advances before they
4.412 141,856
-dlo 1,513
2.55§
Mobile
could supply themselves, and revealed that shelves were not
53,171
Nornolk
at all well stocked. In Liverpool, the Continent and America
500 30.000 2.224.732
2,500 1,000 3.000 23,000
Other ports*
were active buyers, and this had much to do with the rise
Total 1933.. 17,245 9,330 12,583 53.664 16.076 108.898 4.317,375
there. Spot offerings at the South were said to average
Total 1932... 36,021 12.183 21.483 142.934 8.050 220.671 4.433.873
17,524 '6,070 23.295 66.521 2.405 115.815 3.805.913
Total1931
15 to 35 points higher on May, with very little business with
circumstances as they are. Some reports now say there is
•Estimated.
1932-33.
1931-32.
Stock.
Receipts to
Mar. 10.
NI
1742
Financial Chronicle
March II 1933
likely to be a reduction in cotton acreage east of the Missisthe reopening of the futures market, assuming, of course,
sippi River, due to the tight credit situation, but that west
that such reopening occurs within the next few days. The
of the river some increase is probable, despite all obstacles.
New York Cotton Exchange Service estimated that the total
On the 8th inst., Liverpool advanced 10 points, or in 48 consumption of all cotton in this country during February,
hours 30 points, including 22 points in Indian cotton and as it will be reported by the Government, was 448,000 bales,
20 points in American middling. Alexandria had advanced
against 471,000 in January and 451,000 in February a year
over half a cent on brisk buying. Southern prices were re- ago. The daily rate in February was about 20,600 against
ported up sharply on an active demand. All manner of 19,800 in January and 19,800 in February a year ago.
rumors were current about spot prices. Mills in some eases
THE VISIBLE SUPPLY OF COTTON to-night, as made
are pobny supplied with the actual cotton and need more
up by cable and telegraph, is as follows: Foreign stocks as
before they can go on with business in cloths. One idea
here is that when the Cotton Exchanges do open futures well as afloat are this week's returns, and consequently
all foreign figures are brought down to Thursday evening.
will rise very sharply. Atlanta, Ga., wired the Associated
But to make the total the complete figures for to-night
Press that the South continued buying and selling cotton
at prices generally 30 to 50 points above the last quoted (Friday) we add the item of exports from the United States,
Friday only.
prices on the Exchanges. Augusta reported the biggest including in it the exports of1933.
Mar. 101932.
1931.
1930.
increase, with sales of 48 bales of %-inch middling at 7c. a Stock at Liverpool
bales- 784,000 659,000 924,000 911,000
Stock at London
pound, 65 points above the 6.35c. spot quotation when New
Stock at Manchester
103,000 197,000 212,000 100,000
York closed last Friday, and 105 points above the closing
Total Great Britain
887,000 851,000 1,136,000 1,011,000
price of 5.95c. in New Orleans on March 1. The reports, Stock at Hamburg
Stock
541,000 315,000 484,000 488,000
gathered by the cotton division of the United States Depart- Stock at Bremen
at Havre
280,000 175,000 390,000 303,000
ment of Agriculture, showed sales of several thousand bales Stock at Rotterdam
22.000
27,000
13,060
7.000
89,000
89,000 116,000 101,000
at Dallas, 30 to 50 points up. Chickasaw, Okla., said high Stock at Barcelona
Stock at Genoa
112,000
85,000
67,000
64,000
grades were selling at 25 to 30 points advance, but Oklahoma Stock at Ghent
City reported the prevailing basis in that State was 15 Stock at Antwerp
Total Continental stocks
1,014,000 691.000 1,070,006 §637000
points off the May contract, landed in Houston with buyers
Total European stocks
anxious for good Character staple at fixed prices, using India cotton afloat for Europe 1,931,000 1,542,000 2,206,000 1,974,000
114,000
41.000 173,000 203.000
the New York close. At Houston, Tex., '%-inch strict mid- American cotton afloat for Europe 321.000 402,000 309,000 272,000
dling was bringing 6.76c. Prices for all grades were flat Egypt,Brazil,&c.,afi't for Europe 58.000 87.000 94,000 71,000
Stock
526,000 684,000 693,000 495,000
terms, making 23 points less than shipside high density. Stock in Alexandria, Egypt
in Bombay. India
675.000 521.000 959,000 1,384,000
4,426,273 4.659,544 3,921,728 2.004.658
In Savannah, Ga., buyers were paying 6.45c. for middling. Stock in U. S. ports
in U. S. interior
delivered there. Most sales were made on the basis of Stockexports to-day towns---1,964,139 1,961,116 1,420,753 1,228.666
U. S.
25,761
21.067
18,464
reimbursement to be made in Clearing House funds at the
Total visible simply
10041 173 9,913,727 9,794,945 7,632,324
opening of the futures markets. Liverpool cables the Cotton
Of the above, totals of American and other descriptions are as follows:
American
Exchange Service: "Liverpool futures irregular, but good
Liverpool stock
467,000 299,000 468.000 410,000
undertone, with importing at standstill, hedging absent, Manchester stock
71,000 113,000
92,000
67,000
980,000 637,000 960,000 878,000
and contracts tight where demand develops. Sentiment Continental stock
American afloat for Europe
321,000 402,000 309,000 272,000
encouraged by good Bombay and Alexandria advices and
U.S. port stocks
4,426,273 4,654,544 3,921,728 2,004,658
more reassuring reports from America. Spot inquiry im- U. S. interior stocks
1,964.139 1,961,116 1,420,753 1,228.666
25.761
21.067
18,464
proved. Bremen reports business slow as price calculation U.S. exports to-day
Total American
8,255,173 8,087,727 7,189.945 4,860,324
Is impossible. Spot quotations have been advanced 15 points.
Bast Indian, Brazil, .1c.
Authorities continue to pay sterling to franc at equivalent of Liverpool stock
317,000 355.000 456,000 501,000
'dollar parity of around $3.50. In New York print cloths London stock
Manchester stock
32,000
MAW 120,000
33,000
were less active, but firm, with some quotations 3 7/16 to Continental stock
64,000
85,000
54,000 110,000
Indian afloat for Europe
114,000
41,000 173.000 203,000
31
/.c. for 38%-inch 64x60s.
Egypt, Brazil. dm., afloat
58,000
71,000
87,000
94,000
The American Cotton Crop Service said: "Rain during Stock in Alexandria. Egypt
526,000 684,000 693,000 495,000
Stock in Bombay. India
675,000 521.000 959,000 1,384,000
the first half of the week ending March 5 delayed farm work
East India, &c
Total
1,786,000 1,826,000 2,605,000 2,772,000
over most areas, and low temperatures during the last half
Total American
8.255,173 8,087 727 7,189.945 4,880,324
of the week discouraged early planting. In the Eastern
Total visible supply
10011173 9,913,727 9,794,945 7,632,324
Belt weather conditions were slightly more favorable, and
Middling uplands, Liverpool_-- _
5.17d.
5.51d.
6.0Pd.
8.05d.
Middling uplands, New York
7.05c.
10.75c.
14.70c.
considerable progress was made in soil preparation. In Egypt,good Sakel, Liverpool_- _ _ -g- --..
.01cl. 8.65d.
10.25d.
14.450.
the Central belt soil conditions are mostly too wet for Peruvian, rough good, Liverpool_
_
13.50d.
4.75d. 5.23d.
4.7'7d.
"plowing." although flooded streams are receding in most Broach, fine, Liverpool
5.95d.
Tinnevelly, good, Liverpool
5.01d.
5.38d.
5.62d.
7.30d.
local areas. High water along the Tallahatchie River basin
Continental imports for past week have been 94,000 bales.
In the Mississippi delta is expected to recede In time for
The above figures for 1933 show a decrease irom last.
soil preparation and planting of the usual cotton acreage.
Reports state that practically no cotton seed has been week of 140,621 bales, a gain of 127,446 over 1932, an
planted except in the Rio Grande Valley of Texas because increase of 246,228 bales over 1931, and a gain of 2,408,852
of cold, wet soil conditions. The belt is now in need of a bales over 1930.
protracted period of mild, dry weather, as low temperaAT THE INTERIOR TOWNS the movement
-that is,
tures have held on unusually late, especially in the southern the receipts for the Week and since Aug. 1, the
shipments for
third of the belt. Aside from the continuation of low tem- the week and the stocks to-night, and the same items for
the
peratures and the relative lateness in soil preparation, no corresponding period of the previous year, is
set out in
factors of special importance have developed during the detail below:
past fortnight." Mr. Morganthau was quoted as saying
that the Stabilization Board hopes soon to be out of cotton.
Movement to March 10 1933.
Movement toMarch 11 1932.
On the 9th inst. LiverpOol advanced 8 points, and it was
Towns.
Ship- Stocks
Receipts.
Receipts.
Ship- Stocks
stated sales of spot cotton were made in small lots at a rise
mevas. At as.
ments. Mar.
Week. I Season. Week.
10.
Week, Season. Week.
of 60 to 100 points, compared with prices current last week.
Otherwise a good spot business was said to have been done Ala.,Iiirming'm
36,171
22
737 8,744
472
1,608 81,312
69,47
206
Eufaula
7,576
on the basis, with the price to be fixed upon the resumption
2871 6,876
51
193 8,441
12,236,
Montgomery.
38,438
113
121;58.347
245
37,944; 1,3291 62,093.
of business in futures on the reopening of the New York
110, 55,310
Selina
204 49,796
885 83,852' 3,87 71,822
Cotton Exchange. Gray cotton goods here were active and
Ark.,BlythevIlle 1.080 182,545 2,512 51,062 1,433 115,8961 3,92 53,812
353 17,427
22,909
41
Forest City-.
576
ffrrn, with print cloths 64x60s, 38%-inch, at 3%c. One
32,3381
76,733
240
758; 40,829 1,381
Helena
744 133673
73,158; 1,913 49: 23
estimate of the Indian crop was (Volkhart) 4,706,000 bales
50,544
492 22.414
131
Hope
741
58,639, 1,177 15,700
19,254
816 4,897
84
Jonesboro_ _.
198
against 4.825.000 in December and 4,102,000 last year. Liv171 5,658
20,743,
942 06,411 2,439 168,7971 3,031 68,088
Little Rock _ _
2,617 132,201
erpool cabled the Cotton Exchange Service: "Liverpool
48,55
231
Newport _ _ _
493 15,045
591
47,370 i,577i 19,720
Pine Bluff __ _
1,089 113,647 2,246 50,847 3,009
futures quiet. Some Indian selling and local profit-taking
5,254161 liii 3,450 61,308
Walnut Ridge
518 9,137
232 64,973
219 46,4441
948 4 : 15
11 5 1
absorbed by new investment and American buying. Spot Ga., Albany_ .._
1,369
3,159
20 4,324
business quiet, but good export Inquiry continues. Manches-150 50,220
23,010
75
Athens
875
36,399;
1,883 212.671
Atlanta
316268,560 8,940
ter reports yarn and cloth turnover still very limited. Per71,0711 1,041164,918
AllgUSta
2,180 103,564
861110,925 2,314 172,9971 2,294129,231
plexity and lack of confidence restricts enterprise. Inquiry
COIUMbus _ _
16,371 1,000 22,221 1,009
56,112 1,059 27,798
204
Macon
17,909
51 40,028
from abroad mostly price testing. Little effective demand.
269
270 37,757
30,764
Rome
50
11,676
100 13,927
360 15,041250 10,468
Southern spots reported unofficially % to lc. over last Fri- La., Shreveport
967
72,440 1,854 68,045
484 108,174 6,450 01,010
121,259 1,203 52.081 2,372 185,044
Miss,Clarksdale
871
day, but import buying at a standstill."
15,021
Columbus_ _
113
258 12,762
5 138
99.. 14 3°
21,205 3: _9 9 , 8
To-day was in most respects a repetition of the preceding
88 126,159
Greenwood. _
808 81,834
166,739 4,918 97,918
167
34,322
kson
ones of the week, as far as actual trading in this country
148 27,388
25,652
_ 28,785
1
Natchez
7,913
200 7,485
47
:
12,157
was concerned. Sentiment, however, has been steadily Im678 2128,631
29694 7 616322
176
33,690 1,025 14,741
Vicksburg.-- 170
40,670
proving. Spot inquiries were more insistent, even if the
23
Yazoo City
32,016
525 17,523
20
46,824
Mo., St. Louis_ 4,272 118,637 4,300
237 2,412 115,019 2,363 1,121
business done was nominal. Expectations of the resumption
N.C.,Greensb'ro
137
26,391
945 25,054
iii
246 20,645
16,472
of operations on the Exchanges next week has generated
Oklahoma
15 towns*__ _ 2,662 700,407 6,921 85,039 5,627 602,599 0,432 68,727
a feeling of optimism, particularly in view of the 'higher
6,428 109,611 3,564100,808 7,583
prices for spot cotton which have prevailed since March 3. S.C., Greenville 30,3821,616,299 28,472 476,168 38,294 127,955 5,383 75,039
Tenn.,Memphis
1,747,453 47,448430,770
A New York Cotton Exchange seat sold to-day at $12.000. Texas, Abilene_
524 80,786
448
753
622 54,426
85131
602
Austin
21,425
3,138
187, 27,953
an increase of $1,500 over the last sale. There was a report
49
8
Brenham_ _
36
--75 94 6
16,187
0
240
19,174
from southern Georgia to the effect that bids were in the
473 80,744 5,687 22,439 1,287 139,145 2,780 28,246
Dallas
2,780
51,748
Paris
763 12,195
107
market for spot cotton at 100 points or more above last
878 95,289 1,611 12,484
6,446
Robstown_ _
68
320
il 31,11s
125 1,006
Friday's close still unfilled. Liverpool was higher, and
San Antonio.
26
2
10,743
415
105
136 1,205
17,237
382
43,542
Texarkana
847 20,679
Manchester reported Increased activity and an improved
677, 62,147 2,277 15,915
202
323 14,757
71,009
Waco
516
70,917 2,434 16,394
turnover. The rise in silver brought more offers from
China. The general concensus of opinion in the cotton trade Total, 56 towns 58,8084,640,125 71,4171964130 87,9165,058,004 122,781 961116
*Includes the combined totals of 15 towns In Oklahoma.
here anticipates an advance of from 50 to 100 points upon
-iie
Volume 136
Financial Chronicle
The above total shows that the interior stocks have
decreased during the week 13,657 bales and are to-night
3,023 bales less than at the same time last year. The
receipts at all towns have been 29,108 bales less than the
same week last year.
OVERLAND MOVEMENT FOR THE WEEK AND
-We give below a statement showing the
SINCE AUG. 1.
overland movement for the week and since Aug. 1, as made
up from telegraphic reports Friday night. The results for
the week and since Aug. 1 in the last two years are as follows:
----1932-33---Since
Week. Aug. 1.
4,300 119,089
250
• 3,815
-400
632
13.287
3,681 104,365
4,000 264,709
Mar. 10ShippedVia St. Louts
Via Mounds, &c
Via Rock Island
Via Louisville
Via Virginia points
Via other routes, &c
Total gross overland
12,863
Deduct Shipments
Overland to N. Y., Boston, Sm.._
581
Between interior towns
219
Inland, &c.,from South
1,206
Total to be deducted
----1931-32---Since
Week. Aug. 1.
2,363 120,305
22,635
546
458
6,838
- :i.
i3
3,206 119,261
15,329 319,588
505.665
2,006
21,792
589,085
12,958
7,103
116,593
266
160
5,469
22,096
8,568
165,866
136.654
5,895
196,530
Leaving total net overland*
10,857 369,011
*Including movement by rail to Canada.
15,897
392,555
The foregoing shows the week's net overland movement
this week has been 10,857 bales, against 15,897 bales for
the week last year, and that for the season to date the
aggregate net overland exhibits a decrease from a year ago
of 23,544 bales.
/n Sight and Spinners'
Takings..
Receipts at ports to Mar. 10
Net overland to Mar. 10
South'n consumption to Mar.10
-----1931-32
-----1932-33
Since
Since
Week.
Aug. 1.
Aug. 1.
Week.
72.119 7,212,099 158,701 8.488,920
15,897
369,011
392,555
10.857
90,000 2,880.000
110,000 3,109,000
192,976 10,690,110 264,598 11.761.475
Total marketed
564,497 *36,793 1,171,089
Interior stocks in excess
*13.657
Excess of Southern mill takings
241.008
628.334
over consumption to Jan. 1_
Came into sight during week
Total in sight March 10
179,319
11,495,615
North. spinn's' takings to Mar. 10 19,205
* Decrease.
227.805
---- 13.560.898
625,416
30,678
701,365
Movement into sight in previous years:
Week-March 14
1931
-March 15
1930
-March 16
1929
Bales.
Since Aug. 1167,918 1930
140,828 1929
218,384 1928
Bales.
12,295,411
13.117.800
13,593,588
NEW YORK COTTON EXCHANGE TO SEND DELEGATES TO VARIOUS MEETINGS AND CONFERENCES BOTH AT HOME AND ABROAD.
-Mr. George
R. Siedenburg of Hubbard Bros. & Co. of this city will be a
delegate of the New York Cotton Exchange to the Sixteenth
International Cotton Congress of the International Federation of Master Cotton Spinners' and Manufacturers' Associations, to be held at Prague, Czechoslovakia, June 8 to 10.
Mr. Siedenburg will deliver a paper at the congress on the
subject "The Effect of Futures Trading on the Cotton and
Cotton Yarn Markets." Mr. Seidenburg will also be a delegate of the New York Cotton Exchange at the seventh
General Congress of the International Chamber of Commerce, which will meet in Vienna, Austria, May 29 to June 3.
Mr. Henry H. Royce, Mr. George M. Shutt and Mr.
Alston H. Garside will represent the New York Cotton Exchange at the twenty-first annual meeting of the Chamber
of Commerce of the 'United States of America, to be held in
Washington, D. C., May 2 to 5. Mr. Royce and Mr.
Shutt are ex-Presidents of the Exchange and Mr. Garside
is Secretary and Economist. Mr.
-Royce has been-National
Councillor in the United States Chamber of Commerce representing the New York Cotton Exchanze for some years.
Mr. Philip B. Weld of Post & Flagg will represent the
New York Cotton Exchange at the Biennial International
Conference on Universal Standards for American cotton,
to be held in Washington, D. C., on March 13. Mr. Weld
is an ex-President of the New York Cotton Exchange.
WEATHER REPORTS BY TELEGRAPH.
-Reports to
us by telegraph this evening indicate that the weather during
the week has retarded field work in many sections of the
cotton belt but in the Atlantic States this work made some
progress.
Memphis, Tenn.
-The soil has been too wet for plowing.
Rain. lion fall.
3.53 in.
2 days 0.42 in.
2 days 0.32 in.
2 days 0.34 in.
1 day
1.12 in.
1 day 0.02 in.
2 days 2.48 in.
1 day
1.06 in.
2 days 0.32 in.
1 day 2.27 in.
1 day
2.99 In.
2 days 0.66 in.
3 days 0.69 in.
2 days 0.61 in.
3 days 1.46 in.
Galveston Tex
Abilene. 'Ilex
Rrownsville, Tex
-Corpus Christi, Tex
Dallas, Tex
Del Rio, Tex
Houston, Tex
Palestine, Tex
San Antonio, Tex
New Orleans, La
Mobile, Ala
Savannah,Oa
Charleston,8.C
Charlotte, N. C
Memphis, Tenn
Thermometer
high 70 low 45 mean 58
high 74 low 32 mean 53
high 84 low 40 mean 62
high 78 low 46 mean 62
high 72 low 36 mean 54
high 90 low 38 mean 64
high 76 low 42 mean 59
high 76 low 38 mean 57
high 88 low 42 mean 65
mean 55
high 64 low 40 mean 52
high 72 low 36 mean 54
high 68 low 37 Mean 53
high 59 low 30 mean 45
high 61 low 33 mean 45
The following statement we have also received by telegraph, showing the height of rivers at the points named at
8 a. m. of the dates given:
New Orleans
Memphis
Nashville
Shreveport
Vicksburg
Above zero of gauge_
Above zero of gauge_
Above zero of gauge_
Above zero of gauge_
Above zero of gauge_
Mar. 10 1933. Mar. 11 1932.
Feet.
Feet.
12.7
18.7
21.8
18.1
10.9
13.8
21.7
21.1
38.0
47.9
1743
-The folRECEIPTS FROM THE PLANTATIONS.
lowing table indicates the actual movement each week from
the plantations. The figures do not include overland receipts nor Southern consumption; they are simply a statement of the weekly movement from the plantations of that
part of the crop which finally reaches the market through
the outpo.ts.
Receipts at Ports.
Week
Ende
1932.
1931.
1930.
Stocks at Interior Towns.
1932.
1930.
1931.
lI
Deo.
9__ 298.545 227.112 222.908 2.256.650 2.205.71311.815,747 257.542223.823240.657
16.., 262.064 283.317 210.864 2.260.614 2.214.853 1,811.062 266.028292.457206.179
23_ 162.170 191.637 161.383 2.231.716 2.217.262 1.800.744 133.272 194.046151,06S
80_. 182.588 218,440 122,377 2,213,374 2.219.563 1.777.081 164.246220.741 98.714
1931. 1933. 1932. 1931.
Jan. 1933. 1932. 1931. 1933. I 1932.
6_ 194,020353,609115.570 2.169.3302.206.9681.750.859149.976 341.014 89,342
13_ 168.774'274.657 106.805 2.167,2432.198.054,1.725.164 166.687 265.743 81.110
20- 188.072241.478 80,4282.165,9992.175.4071.696.148 186.822 218.831 51,412
198.9811280,442 115,045 2,138.401 2,158,461 1.658.372 171.383263.496 77.269
Feb.
182.110223.645 105.953 2.118,211 2,123,944 1.627,316 161.9201189.128 74,897
10_ 121.163249,848 106,106 2,084,026 2,102,990 1,588,762 86.978228,894 67.552
17_ 102,180175.417,113,438 2,6 18.063 2,080.961 1,556,997 66,51 I153,38S 81.673
24_ 1.22,954 161,669,119.362 2,014,666,2,032,312 1,514.682 89,557 113,020 77,047
Mar.
3.. 101,012 184.0651118,571 1.977,79611,997.909 1.461,836 64.11 149.662 65,725
14,139 1.961.1161,420.753 58, 62 121,908 41,083
19_ 7e,119 158,7011 93,477 1,9,
The above statement shows: (1) That the total receipts
from the plantations since Aug. 1 1932 are 7,705,541 bales;
in 1931-32 were 9,593,353 bales and in 1930-31 were 8,731,135
bales. (2) That, although the receipts at the outports the
past week were 72,119 bales, the actual movement from
plantations was 58,462 bales, stock at interior towns
having decreased 13,657 bales during the week. Last year
receipts from the plantations for the week were 121,908
bales and for 1931 .they were 41,083 bales.
WORLD'S SUPPLY AND TAKINGS OF COTTON.
1931-32.
1932-33.
Cotton Takings,
Week and Season.
Week.
Season.
Season.
Week.
10.058.373
10,181,794
Visible supply Mar. 3
6.892,094
7,791,048
Visible supply Aug. 1
227,805 13,560,898
179,319 11.495.615
American in sight to Mar. 10_
81,000 1,081.000
70.000 1,404,000
Bombay receipts to Mar.9_
233,000
12,000
313,000
10.000
Other India ship'ts te Mar.9_
24.000 1,2.16,000
809,000
16.000
Alexandria receipts to Mar.8393,000
10,000
373.000
13,000
Other supply to Mar. 8.5.b,..
10.470.113 22.185,663 10,413.178 23.375,992
Total supply
Deduct
Visible supply
10,041,173 10.041,173 9,913.727 9,913.727
499,451 13.462.265
Total takings to Mar. 10_a___
428,940 12.144,490
Of which American
335,451 9,989,265
326,940 9.139.490
164.000 3,473,000
Of which other
102.000 3,005,000
* Embraces receipts in Europe from Brazil, Smyrna, West Indies, &c.
estimated consumption by
a This total embraces since Aug. 1 the total
-takings
Southern mills, 3,109,000 bales in 1933 and 2,880,000 bales in 1932
not being available-and the aggregate amounts taken by Northern and
foreign spinners. 9.035,490 bales in 1933 and 10.582,265 bales in 1932.
of which 6,030,490 bales and 7,109,265 bales American.
b Estimated.
INDIA COTTON MOVEMENT FROM ALL PORTS.
1932-33.
March 9.
Receipts at
-
Since
Wee/c. lAug. 1.
1931-32.
Week.
Since
Aug. 1.
1930-31.
Week.
Since
Aug. 1.
70,000 1,401,000 81,000 1,081,000 117,000 2,238,000
Bombay
For the li'eek.
Exports
from
-
Since August 1.
Corgi- Japan &I
Great
Great Conti-I./alma&
China.
Total.
Britain. tient. China.1 Totat. Britain. I neut.
,
Bombay
NHL
630-31_ _
er India
1932-33
l931-3L
1930-31_
att
-
-
1
6,000
1,000
6,000
I
9,000
1,000
_ ___
10,0001 19,0001 35,000
2,000, 16,000 19,000
24,000 30,000 60,000
1,0001
11,006
23.000
27,000 182,000 615,000 824,000
15,000 105,000 649,006 769,000
95,000 480,000 1,241,0001,816,000
10.000 71,000 242,000
12,000 59,000 174,000,
23,000 103,000 292,000
313,000
233,000
395,000
Total all
1932
-33- 15,000 11,000 19,090 45,000 9%000 424,000 615,0001,137,000
193l-3L., 2,000 13,000 16,000 31,000 74,000 279,000 649,0001,002,000
1930-31._ 6,000 47,000 30,000 83,000 198,000 772,000 1,241,000 2.211,000
According to the foregoing, Bombay appears to show a
decrease compared with last year in the week's receipts of
11,000 bales. Exportsfrom all India ports record an increase
of 14,000 bales during the week, and since Aug. 1 show an
increase of 135,000 bales.
ALEXANDRIA RECEIPTS AND SHIPMENTS.
-We
now receive weekly a cable of the movements of cotton at
Alexandria, Egypt. The following are the receipts and
shipments for the past week and for the corresponding week
of the previous two years:
•
Alexandria, Egypt,
Mar. S.
Receipts (Cantars)This week
Since Aug. 1
Export (Bales)
-
1932-33.
1931-32.
1930-31. 7
80,000
4.134,271
120,000
5.840.426
145.000
5.823.076
This I Since
Week. Aug. 1.
This Since
Week. Aug. 1.
This Since
Week. Aug. 1.
To Liverpool
6.000 94.551 6,000 147.321
__- 93,719
To Manchester, &c
69.994 7,000 117.209 4,01110 84,670
To Continent and India_ 12,000 324,480 11,000412,275 18.000384,813
To America
2,000 24.878 1,000 17,832 1,000 10,815
Total exports
20.000 513.903 25,000694.637 23,000 574,017
Note.
-A eantar is 99 lbs Egyptian ha es weight about 750 Its.
This statement shows that the receipts for the week ended Mar. 8 were
80.000 cantars and the foreign shipments 20,000 bales.
Financial Chronicle
1744
MANCHESTER MARKET.
-Our report received by
cable to-night from Manchester states that the market in
yarns is firm and in cloths is quiet. Merchants are not willing
to pay present prices. We give prices to-day below and
leave those for previous weeks of this and last year for
comparison:
1931.
1932.
32s Coy
Twist.
Dec.
9_._.
16___.
23._
30._
834 Lbs. Shirt- Cotton
nas, Common MeddIV 323 Cop
to Finest.
UN'
ds. Twist.
d.
s. d.
834010
83(4)1034
834010
8341810
83
83
83
82
Jan.19 33.
6---- 834181034 8 3
13-. 834010 8 3
20____ 8340 974 83
27--- 8940 974 8 3
Feb.
3..__. 8340 934 8 3
10.... 83418 934 8 3
17.... 87418 934 8 3
8340 934 8 3
March
3____ 8 0 934 8 3
In
R% at oM R 3
834 Lbs. Shirt- Cotton
tags, Common MeddPg
Upl'ds.
to Finest.
s. d.
d.
d.
d.
s. d.
5.04
5.26
5.07
5.29
934011
89401034
83401034
83401034
80
80
80
80
0 84
034
084
08 4
5.21
5.20
5.319
5.39
088
08 6
086
08 6
5.33
5.30
5.25
5.15
1932.
89401034 8 0
83401034 8 0
83401034 8 0
83(01034 8 1
084
08 4
08 4
084
5.33
5.41
5.52
5.50
08 6
08 6
086
08 6
4.94
5.09
4.95
4.95
89401074
83(01034
9 01074
9 (g11034
08 4
084
08 4
@84
5.587
5.59
5.95
8.79
08 6
ea R a
4.79
5.17
9 01034 8 1 0 8 4
RuainV.' R n rib R 2
s. d.
08 6
08 6
09 6
035
8
8
8
8
1
1
1
1
5.73
5.51
SHIPPING NEWS.
-Shipments in detail:
Bales.
100
130
699
HOUSTON
-To Lisbon
-March 3-Sahale, 100
To Piraeus
-March 8
-Ida Zo, 130
To Leixoes
-March 3-Sahale, 699
-Ida Zo, 1,399March 7
To Genoa-March 8
-Cape St.
George,6.800
8.199
To Oporto
-March 3-Sahale, 2.239
2,239
To Bremen-March 9-Bockenhelm. 8,325
8,325
To Corunna-March 3-Sahale,300
300
To Bilbao-March 3-Sahale, 14
14
To Passages
-March 3-Sahale, 300
300
To Santander-March 3-Sahale, 25
25
To Japan-March 3-Takaoka Meru, 3,211
3,211
-West Chatala, 2,981March 6
To Liverpool-March 4
Jose de Larrinaga. 4.130
7.111
-Wont Chatala, 2,114 _..March 6
To Manchester-March 4
Jose de Larrinaga, 1,591
3,705
To Barcelona-March 4-Jomar, 3,384March 3
-Mar
Blanco, 3.241
6,625
To Allicanta-March 4-Jomar, 100
100
To Cette-March 4-Jomar, 167
167
To Venice-March 4
-Ida. 1.827
1,827
To Fiume
-Ida,200
-March 4
200
To Trieste-March 4
-Ida, 750
750
To Japan-March 3-Fernhill, 5,645 ....March 6-Snestad1.831; Sacramento Valley, 7.800---March 8-Kelfuku
Maru,1.581
16,857
To China-March 3-Fernhill, 3,028---March 6-Ferncliff,
5.873; Sacramento Valley. 2,183
11,084
NEW ORLEANS
-To Venice
-Mar. 1-Ida,2,258
To Trieste
-Mar. 1-Ida,350
350
To Fiume
-Mar. 1-Ida, 100
100
ToIndia-Mar, 1-Salawat ,311
311
To Dunkirk-Porta, Add% 9
-Mar.3
-Topeka. 868
To Barcelona-Feb.27
-Cranford,745---Mar.7
-Cody,775_ 1,520
To Bremen-Mar.2
-Cranford, 4.919; Uraguay, 8.629
13,548
To Rotterdam-Mar. 2
-Cranford, 620--_Mar. 3-Breedijk,
929
1,549
To Oporto
-Mar.2-Uraguay, 400
400
To Hamburg-Mar. 2-Uraguay. 707; 1Jraguay, 320; Cran.
ford, 533
1,560
To Gdynia-Mar.2-Uraguay,342--Mar.3
-Topeka,825_ _ 1,167
To Abo-Mar.2-Uraguay. 50
50
To Riga-Mar.2-Uraguay. 125
125
To Gothenburg-Mar.3
-Topeka,625
625
To Ghent
-Mar.3-Breedijk,50_ __Feb.27-0akman,2,473- 2.523
To Genoa
-Mar.3
-Ida Zo, 2.050
2,050
To San Salvador-Mar.1-Atenas, 50
50
To Barranquilla-Mar.4-Zacapa,250
250
To Havre-Feb.27-Oakman, 1,779
1.779
To Antwerp-Feb. 27
-Oak
-man,658
658
To Liverpool
-March 4-Ebnsport, 5,089
5,089
To Manchester
-March 4-Ebnsport, 3.764
3,764
NORFOLK-To Manchester-March (7)
-City of Flint, 175;
Atlantian,100
275
To Havre
-March (1 -City of Havre. 89
GALVESTON-To Havre-March 3
-Nevada,1,099
1,099
To Dunkirk-March 3
-Nevada,848
848
To Antwerp-March 3
-Nevada,48
48
To Ghent
-March 3
-Nevada.50
50
-Chester Valley. 1.380
To Genoa-March 2
To Naples
-March 2
-Chester Valley. 200
To Barcelona-March 2-Jomar, 1,992
1,9
To Lisbon-Feb.28-Sahale,125
125
To Oporto-Feb.28-Sahale,726
726
To Bilbao-Feb. 28-Sahale, 186
186
To China-March 3
-Fern(liff, 11,564_ - _March 4
-La Plata
Maru,766; Yuri Marti.500
12,830
To Japan-March 3-Snestad, 4,892.
..March 4
-La Plata
Maru, 1.473; Yuri Maru, 4.550-...March 6-Takaoka
15,429
To Bremilin---March 4
.
-Simon von Utrecht. 5.895
5,895
-West Chatala, 1,522
To Liverpool
-March 7
1,522
To Manchester
-March 7
-West Chatala, 1.064
1,064
To Venice
-Mar. 7
-Ida.4,790
4,790
To Trieste-Mar.7
-Ida, 1,120
1,120
To Fiume
-Mar.7
-Ida,300
300
To Genoa
-Mar.7
-Ida Zo,3.276
3,276
CHARLESTON-To Antwerp
-Mar.4-Evanger,705
705
To Rotterdam-Mar.4-Evanger, 111
111
To Hamburg-Mar. 4-Evanger. 186
186
PENSACOLA-To Bremen-Mar.6-Delfshaven. 749
749
TEXAS CITY
-To Liverpool
-Mar. 7
-West Chatala, 3,060_ --- 3,060
To Manchester
-Mar.7
-West Chatala. 642
642
To Lisbon-Feb. 28-Sahale, 25
25
To Oporto
-Feb. 28-Sahale. 411
411
-Chester Valley. 726
To Genoa-iMar. 3
726
To Barcelona-Mar. 2-Jomar,639
639
-Simon von Utrecht, 2,599
To Bremen-Mar.4
2,599
-To Liverpool
-Mar.2
-West Chatala, 250.-LAKE CHARLES
250
-Mar. 2
-West Chatala, 34
To Manchester
34
To Bremen-Mar. 8-Grandon. 195
195
-Mar. 9-Evanger. 340
SAVANNAH-To Hamburg
340
To Lisbon-Mar.9-Evanger,50
50
-Mar.8-Monflore, 136
JACKSONVILLE
-To Genoa
136
Total
176,673
-By cable from Liverpool we have the folLIVERPOOL.
lowing statement of the week's sales,stocks, &c.. at that port:
Forwarded
Total stocks
Of which American
Total imports
Of which American
.Amount afloat
Of which American
Feb. 17. Feb. 24.
56.000
54,000
772,000 7 83,000
447.000 460.000
56,000
56.000
42,000
36.000
154,000 133,000
109,000
82,000
Mar. 3. Mar. 10.
48.000
47.000
764.000 784,000
446.000 467,000
24.000
71.000
11.000
56.000
153.000 133,000
100,000
67,000
March 11 1933
The tone of the Liverpool market for spots and futures
each day of the past week and the daily closing prices of
spot cotton have been as follows:
Spot.
&surdas.
Monday.
Market,
12:15 .1
P.M.
Dull.
Quiet.
MId.Upl'els
4.864.
Tuesday. Wednesday. Thursday.
More
demand,
More
demand.
4.796.
4.99d.
4.72d.
Quiet.
5.00d.
Friday.
Moderato
demand.
5.176.
Futures.1 Irregular, Steady.
Firm,
Finn
Firm,
Steady.
Market
unch'ged to 11 to 12 pts 5 to 8 pts. 8 to 10 pts.6 to 8 pts.6 to 9 Pts•
opened 4 pts. dec. decline, advance, advance, advance. advance.
Market,
4
P.M.
Firm
Steady. Quiet but Very st'dy, Quiet but Very st'dy,
2 to 3 pts st'dy, 12 to 1610 18 pts st'dy, 10 to 6 to 8 pta. 18 to 19pts.
advance. 16 pts. dec. advance. 11 pts. adv. advance. advance.
Prices of futures at Liverpool for each day are given below:
Mar. 4
to
Mar. 10
Sat. I Mon.
Wed.
Thurs.
Tues.
Fri.
,
12.1512.3012.15 4.1112.15 4.0012.15 4.0012.15 4.0012.15 4.00
p. m p. m.p. m.p. m.p. m.p. m.p. m.p. m.p. rn. p. m p. m.p„ m.
New Contract. d.
February(1933) __ __
May
July
October
January (1934) __ __
March
May
July
October
December
January (1935) _ __
d. 1 d.
4.64 4.52
4.66, 4.53
4.671 4.54
4.71 4.57
4.76 4.6
d.
4.52
4.53
4.53
4.57
4.61
__
4.85'_..
4.83,_.
4.871_ 4.91.. -4.92- -
4.67 .- 4.69__ -4.72... __
4.76__ 4.77-- -
d.
4.59
4.60
4.61
4.64
4.68
d,
4.69
4.70
4.70
4.73
4.77
d.
4.79
4.80
4.80
4.83
4.87
4.84..
4.87__ -_
4.89.,. -4.93.. -4.94_ __
d. 1
4.791
4.80
4.811
4.84
4.881
d.
4.80
4.81
4.81
4.84
4.88
1....._
4.971-- 4.99...5.03 -- 5.04 -- -
--4.94
d.
4.87
4.88
4.88
4.91
4.95
d.
4.97
4.98
4.99
5.02
5.06
d.
5.06
5.06
5.07
5.09
5.13
5.011_ __
5.03.. __
5.061 _ __
5.10 __ -5.11'__ __
5.19
5.21
5.24
5.28
5.29
BREADSTUFFS
Friday Night, March 10 1933.
FLOUR trade was noticeably kept down to a very narrow
scale and prices were largely nominal after last Friday's advance. Exports from New York on Mar. 4 were 5,905 sacks
to Continental ports. For the week there cleared 50 bbls.
and 11,655 sacks against 805 bbls. and 18,840 sacks the week
previous. Although there has been little business this week
mills generally have been asking 50c. to $1.00 more than the
recent low price to -protect themselves in the removal of their
hedges.
WHEAT advanced in Winnipeg for a time compared with
the price ruling late last week. Chicago was at first an active
buyer in Winnipeg; then there was a lull and some reaction on
profit taking. Trading has become more active of late on
predictions of inflation of our currency which leads to the
belief that when the Exchanges open, it will be at a sharp
advance in commodities as well as stocks. Liverpool has
advanced, but it must be confessed at a very leisurely pace,
a fact which has been more or less of a damper on Winnipeg
and on sentiment in Chicago. Early in the week there were
reports of export business in Winnipeg by way of Vancouver
but of late nothing has been heard of export sales. Trading
generally speaking was stopped early in the week in cash
wheat ,as far as most grain exchanges were concerned.
On the 4th there was very heavy trading in Winnipeg,
where prices advanced 13j to 2c. on active buying by
Chicago and New York, as well as a good export business,
so that the price of October was at one time 3c. higher than
Friday's closing. Winnipeg reported the export sales at
500,000 bushels, but the total, according to rumor, was
larger. Liverpool was 1 Yi to 1%c. higher. There was some
rain in Kansas and the forecast pointed to rain or snow
over the weekend in both Kansas and Nebraska, but this
fell flat in Winnipeg. The big demand swept everything
before it. Cash wheat was active.
Prospects for winter wheat west of the Missouri River
are very poor. The condition declined during the first
two months of the year 5%. This suggests an averaie of
58.5% as against 81.5% last year, and an average for the•
preceding five years on March 1 of 82.8%. The total
production is generally forecast at slightly less than 400,000,000 bushels, as against a final crop last year of 462,000,000
bushels and a five-year average of 580,000,000.
In Winnipeg on the 6th in the absence of trading at
Chicago, prices advanced with active and excited trading
2 to 23ic. making a rise of 40. since March 3. Chicago
wired on March 6th: "The local trade cannot figure exactly
what wheat prices in Winnipeg and Liverpool actually
represent in terms of United States funds. When Winnipeg
closed on Friday the May future was selling at equal to
/
738c. under Chicago, based on the official rate of exchange.
If the small sales of American dollars at par with Canadian
as reported at various points, are taken as a guide, Winnipeg
at the close to-day was 3%c. above the price at Friday's
close in Chicago. Sterling was unofficially quoted at $4.28,
suggesting a price of about 60o. a bushel for Liverpool May,
while on the basis of the nominal figure of $3.45, at which
sterling was quoted on Friday, the price would be only
4858c. A definite comparison of the prices in the various
/
markets cannot be expected until official transactions in
foreign exchange are under way." Some snow and rain were
reported in Kansas and Nebraska but there was no evidence
that the prolonged drouth had been definitely broken and the
latest advices point to a winter wheat crop in the United
States this year much smaller than any for years past.
(Continued on page 1694.)
Volume 136
Financial Chronicle
WEATHER REPORT FOR THE WEEK ENDED
MARCH 8.—The general summary of the weather bulletin
issued by the Department of Agriculture, indicating the influence of the weather for the week ended March 8, follows:
In the far Western States, the week brought a reaction to decidedly
higher temperatures, and abnormally warm weather was again the rule
in northern districts from the Lake region westward to the Rocky Mountains. It was much cooler than last week, however, in the Southeast, with
frost on several mornings extending as far south as Florida. Most of the
week had fair weather, but rainfall was extensive near its close from the
middle Atlantic area, and the Ohio and lower Missouri Valleys southward
to the Gulf.
The table shows that the temperature for the week, as a whole, averaged
from 4 degrees to 8 degrees below normal from Kentucky, West Virginia,
and southern Virginia, southward. In the west Gulf area, the weekly
mean temperatures were from 3 degrees to 6 degrees below. On the other
hand, the abnormally high temperatures from the Lake ergion westward to
the Rockies brought the weekly meansfor that area from 6 degrees to as much
as 16 degrees above normal. In the Northeast, the plus departures were
moderate, and west of the Rocky Mountains the week had about normal
warmth, except locally.
The table shows also that precipitation was rather heavy in east Gulf
States and in those directly west of the Mississippi River, as far north as
Missouri and South Dakota in the Great Plains, though the heretofore dry
districts, from southwestern Nebraska southward, were again missed. A
large area of the far Southwest had a rainless week, but there was consiberable precipitation in the Pacific Northwest, especially in western,
Washington.
The weather of the week, on the whole, was favorable in most sections
of the country. Abnormally low temperatures in the Southeast retarded
the growth of vegetation in that section. and there was some frost damage
on the lowlands of Florida: on the other hand , the coolness was advantageous in holding fruit trees in check. Peach buds in Georgia are developing
slowly, and normal advance was reported from other South Atlantic States.
The heavy rains in Florida were very beneficial to all growing vegetation.
Another outstanding feature of the weather was the generous precipitation that occurred in the eastern Great Plains from South Dakota southward
and in the extreme lower Missouri Valley. This additional moisture was very
helpful, but the widespread rains at the close of the week in central Gulf
sections were not needed and only served to further retard field work
because of wet soil. Seasonal farm activities are backward in the South
from Alabama westward. but progress is much better in the Atlantic States
where rainfall has not been so frequent.
Some plowing was accomplished in the central valleys, and more than
the usual amount for this time of year is reported from the southern Great
Plains, especially in eastern Kansas. The warm weather in the Northwest
and more moderate temperatures in the Great Basin were decidedly favorable for livestock, with ranging extended materially. Rain is needed in
the far Southwest. especially in southern California where there has been
an entire absence of precipitation for a number of weeks. The western
wheat belt continued dry, and winter grains either showed further deterioration, or barely held their own, in considerable areas.
SMALL GRAINS.—Winter cereals are in mostly satisfactory condition
in the Atlantic and east Gulf States. In the Ohio Valley condition is variable, with considerable winterkilling apparent in many places, although
local improvement was noted. In Iowa winter wheat looks rather poor
and was evidently Injured by the severe weather in February. In Missouri
and eastern Kansas wheat is generally good, with recent substantial rain
of considerable benefit. In the Southwest there was some improvement
noted, although winter oats are in less satisfactory shape. In the western
half of Kansas wheat continued to deteriorate or barely held its own,
while in eastern Colorado and western Nebraska prospects are unfavorable:
in central and eastern Nebraska general precipitation was of immense
value, with prospects greatly improved. In the Northwest winter grains
are largely unchanged, although the snow is melting rapidly and the ground
is now bare in most of the Pacific Northwest.
Spring plowing has advanced northward to the Ohio Valley and northeastern Kansas. Spring oat seeding is more than half done in southeastern
Kansas and is starting in the southern Ohio Valley; local seeding has begun
in South Dakota. .
THE DRY GOODS TRADE
New York, Friday Night, March, 10 1933.
The banking situation, involving country-wide closing
of the banks, brought a confused price situation into
textile markets. The immediate reaction of the markets to the national banking moratorium was a further shrinkage in the volume of trade orders, and as
the industry's funds became more or less frozen in closed
banks, and buyers, in many instances pressed for concessions, on such orders as they were prepared to place under
the circumstances. On the other hand, the inflationary
implications of the situation, emphasized by various trade
groups in their advices to their members, led to a rather
general pegging-up of quotations by manufacturers and
mills as a protection against a considerable rise of prices
which many expect to result from the new financial measures. A considerable volume of speculative buying by outside interests, centering in gray cotton goods, followed,
estimated at somewhere in the neighborhood of 6,000,000
yards up to to-day, and general advances in price were
registered to a level of approximately Ihc. higher. In finished goods and sheetings, also advances of % to 24c. were
/
recorded, and a moderate volume of business came to hand
at the new levels. General sharp price advances also
occurred in silk goods, more directly reflecting the firm
raw silk situation, though actual buying of silk goods remains very limited, with the dress trade exercising great
caution in placing new orders. Meanwhile, production in
this division has been greatly curtailed, and the amount
of available goods is described as adequate to only about a
fortnight of normal demand. Other divisions are similarly
restricting production, with the notable exception of cotton
goods, where mills base their maintenance of production
on the belief that the banks will reopen soon to the accompaniment of a progressive rebirth of confidence on the part
of the general public which could clean out meagre stocks
in wholesale and retail channels in short order. There
exists, however, evidence that this bullish view is subject
to distinct reservations in other directions. Many retailers
have been moved by their apprehensions as to the repercussions of the banking troubles, and by the excuse the latter
provide, to cancel orders, though in many such cases there
1745
is no evidence that the buyers in point are immediately
embarrassed for funds. Sellers are endeavoring, with some
reported success, to combat this practice by means of publicity, and some retailers are already suffering definitely
from the acquisition of a reputation for unethical cancellations. In textiles, as in every commercial and industrial
center of any kind throughout the country, confidence in
the new President, and the masterful action he has alreadytaken to justify such confidence, provides the keynote of
the present situation. Under his supervision a radical overhauling of the whole banking system, to place it on a new
and permanently sound foundation, is being prepared, and
with the reopening of many sound banks in immediate prospect, pending the passage of such permanent legislation,
there is reason for hope that the most critical aspects of
the current emergency may be solved in the not very remote
future.
DOMESTIC COTTON GOODS.—Active trading in gray
goods was the feature of the week in textiles, a large volume
of such cloths having changed hands at substantially higher
prices, as speculative buying, on the theory that inflated
prices are to be expected as a reflection of inflationary
legislation in connection with the national banking crisis,
swelled the volume of ordering. However, the contention
rife among pessimists early in the week that the buying in
process was largely or almost wholly speculative is reported
as untrue, reports from the South especially indicating that
much of the buying in evidence in the past few days has
been from legitimate buyers whose views of the desirability
of ownership of goods has changed constructively since last
week. Considerable confusion still exists as to prices, with
market prices in gray goods markets quoted at approaching
%c. higher than last week, but uncertainty and unreliable
information respecting the current price of raw cotton, together with the uncertainty as to the extent of the future
effects of the new inflationary legislation, is prompting the
withdrawal of some mills from the market pending clarafication of the situation. Few mills are anxious to sell into
the future. One important deterrent to buying at the moment, Which has nevertheless not prevented a substantial
volume of spot gray goods from being moved, is the possibility that speculative cotton markets, when they reopen,
may quote conceivably do so at considerably lower levels
than some of the indefinite information available indicates
to be ruling raw cotton at the present time. Business in
fine goods was only moderately active, but this was to
some extent due to the withdrawal of many offerings from
the market pending clarafication of the price situation,
and, at the same time, the imposition of higher prices for
the protection of sellers. Chambrays, pillow cases, Sheets
and bleached cottons in the finished goods division were
among those which registered advances. Some business
was done at the advances, confined largely to buyers with
definite needs and sound credit standing. Print cloth 27-inch
64x60s constructions are quoted at 2 c., and 28
/
1
2
-inch 64x60s
at 2%c. Gray goods 39-inch 68x72s constructions are quoted
at 3%c., and 39-inch 80x80s at 43fic.
WOOLEN GOODS.—General confusion exists in markets
for woolens and worsteds with respect to prices, with business in piece goods reported to be virtually at a standstill.
Firmer prices were in evidence on raw wool, but so far
there has been no marked movement upward on goods prices.
While some observers expect speculation in goods to set in
presently, there is as yet no real indication of such activities, both buyers and sellers apparently being inclined to
,
await the conclusion of the present banking crisis and the
reopening of speculative markets, as a gauge of the effects
of inflated currency propositions. Opinion as to the outlook
is by no means unanimous, there being a number of pessimistic commentators who opine that considerable harm.
has already been done to the volume of potential sprinz
business at retail, and that the primary markets accordingly face a period of ertended quietude. On the other
hand, those who expect higher prices, and take confidence
from President Roosevelt's constructive actions to date, and
his manifest determination to get more, and speedily, consider that the outlook, while not definitely predictable, may
harbor definite improvement for the trade and business at
large within a relatively short time. Small ordering of
popular-priced men's clothing for spring was placed during
the week, but without evidence of forward commitments.
FOREIGN DRY GOODS.—In consequence of the confused
price situation, importers withdrew prices on linens, and
also closed their offerings for future deliveries, though
allowing the continued placing of small orders for spot
goods at prices specially made for such transactions. The
possibility of sharp increases in demand, in case inflation
seriously impairs the buying power of the dollar on foreign
goods, is being freely discussed. Burlaps advanced substantially. although no significant increase in the volume of
business placed was recorded. Light weights are quoted at
3.20c., and heavies at 4.40c.
1746
Financial Chronicle
,Otate anti Txtg pepartment
MUNICIPAL BOND SALES IN FEBRUARY.
We present herewith our detailed list of the municipal bond
issues put out during the month of February, which the
crowded condition of our columns prevented our publishing
at the usual time.
The review of the month's sales was given on page 1591
of the "Chronicle" of March 4. Since then several belated
February returns have been received, changing the total
for the month to $17,557,818. This figure does not include
Reconstruction Finance Corporation loans, actually made or
promised, to States and municipalities during February,
in the amount of $71,402,351. The number of municipalities issuing bonds in February was 94 and the number of
separate issues 119.
March 11 1933
The following items included in our totals for previous
months should be eliminated from the same. We give the
page number of the issue of our paper in which reasons for
these eliminations may be found.
Page.
Name.
1410 .AlgerCounty, Mich. (December 1932)
1232_ _Allen County, Ohio (January 1933)
1053__Alpine Sch. Dist., Utah (January 1933)
1411_-Delphos, Ohio (October 1932)
1415_ _Port Huron, Mich. (December 1932)
Amount.
$47,600
29,000
r180,000
61,000
61,000
We have also learned of the following additional sales
for previous months:
Page.
Name.
Rate.
1053_ _Alpine Sch. Dist., Utah_ -5
1054--Augusta, Ga.(Nov.1932)436
874- _Beaver Fails,Pa.(Aug.'32)4f4
1410_ -Belding, Mich.(Nov.'32)6
1054-Belmont, Ohio (Nov.'32)6
1054--Bexley City Sch. District,
Ohio (Dec. 1932)
531
1054_-Buffalo, N. Y.(Nov.'32)4
5
1054--Carbondale. Pa
1055-Clay County, Iowa
5
875__Cranford Twp., N. J.
6
(Dec. 1932)
1055- _Dearborn,Mich.(June'32)431
1056--Detroit, Mich.(Aug.'32)6
1056-Duluth, Minn.(July '32)5
1055__Duluth. Minn. (Oct. '32)434
1411_ _East Huntington Towp.
S. D., Pa.(July 1932)_5
1056- _Grand Rapids, Mich.
434
(June 1932)
1057-Kilgore, Tex. (Sept.'32)_6
1058--Lakewood,Ohio(Aug. '32)4
1058_ _Lincoln, Neb. (Aug. '32)234
1058-Lincoln, Neb. (2 issues
Aug. 1932)
.__43(
1058-Manchester, N. H.(June
436
1932)
877-Medina Co., Ohio (Dec.
531
1932)
1059-_New Brunswick, N. J. (3
6
issues
-Dec.)
..Pawtucket. R. I.(2 issues
1060..
4.31
-Feb.1932)
(Dec.)(3
1060--Perth Amboy,N.J.
1060__Quincy, Mass. (Apr. '32)5
1061--St. Louis, Mo.(Dec.'32)4
1061-Somerville, Mass. (May
434
1932)
1061__Somerville, Mass. (May
411
1932)
5
1061_ -Three Rivers, Mich
1062__Warren Co., Ohio (Dec.
1932)_ _ _ _ _ _ __ _ ___- _431
880_ _Wichita, Kan.(Oct. 1932)431
1062-Wilkes-Barre, Pa. (Feb.
5
1932)
1062--Worcester, Mass. (May
336
1932)
1062. Worcester, Mass. (April
4
1932)
Maturity. Amount. Price. Basis.
1934-1937 r150.000 100
5.00
r54,000
1933-1944
60,000 100
175
1935-1952
93.000 100
6.00
1934-1936
r1,225 100
6.00
1933-1952
1933-1952
1934-1953
1940-1942
375,000 100
75,000 100
200.000
r16,500 100
5.25
4.00
5.00
Page.Name.
Rate. Maturity. Amount. Price. Basis.
1935-1939
67,000 99
6.26
1053_ _Alliance City S. D.,Ohio_ 6
1934-1936
30,000 100.12
5.95
1944
15.000 100
4.25
1593_ _Amelia, Ohio
534 1934-1938
1,500 100
5.50
1935-1946r3.363.000 100
6.00
1410_ _American River Flood
1935-1938r1,000,000 100
5.00
Control Dist. Calif_ _ _634
78,000 100
6.50
1935-1936
25,000 100
4.50
1054_ _Ashland County, Ohio___6
'
1-2 yrs.
20,000 101.55
4.90
1593 _ _Bay City, Mich
534 1934-1851
50,000 100.36
5.45
1933-1937
25,000 100
5.00
1410_11eltrami Co., Minn
534 1936-1945 r100.000 100
5.50
1054__Blakely, Pa
5
26.000
1933-1937 250,000 100.12
4.45
1054_ _Brainerd, Minn
6
1934-1936
1,650 100
6.00
1933-1938 d175.000
1054_ _Brainerd, Minn
6,350 100
5
1934-1938
5.00
1933-1937
30,000 100
4.00
1593-Brewster S. D. No. 10.
1933-1939 142,655 100
2.50
Mimi
4
1938-1952 r19,500 100
4.00
1054__Buchanan, Mich
531 1933-1935
r6,500 100
5.25
1943-1952 100.000 1 00
4.25
431 1938-1947 100,000 100.25 4.22
1749_ - Butler, Pa
4
1954-1955 171,000 102.42
3.83
1233_ _California (State of)
1-20 yrs. 100,000 100
4.50
1054_ _Cambridge, Mass
3) 1934-1953 270,000 100.75 3.27
3.34 1934-1953 230.000 100.75
3.27
1054_ _Cambridge, Mass
15.000 100.33
5.12
1934-1938
2,600
___ _
1934-1938
1055_ _Carroll County, Ohio_ _ _ _6
116.000
1233_ _Carson County,Tex
1934-1967 506,000
875__Cattaraugus Co., N. Y__3.70 .1934-1945 150.000 100.02
3.69
53.000 100
1233_ _Cerro Gordo Co.. Iowa_ _431 1934-1944
4.75
4.75
1933-1947 175,000 100
4
9,700 100
1055 Clearfield Twp.. Pa
4.00
6.00
1934-1940
10,000 100
534 1934-1973 3,200.000 100.05
1055„Cleveland, Ohio
5.49
5.00
1938-1937
75,000 100
1935-1952
30.000 108.13 4.13
1411_ _Collier Twp.S. D.,Pa_ _ -5
3.84
1937-1952 400,000 101.52
I234__Columbus, Ohio (6 iss.)_ _5
1933-1949 366.000 100.65
4.25
1234- _Columbus, Ohio (11 iss.)_436 1934-1953 1,098.000 100.65 4.25
4.50
1933-1942 250.000 100
4
1234-Columbus, Ohio
1952
415,000 100.65 4.25
1411_ _Crawford County, Ohio_ _434 1934-1938
48,000 100.11
4.47
4.75
1933-1937
78,000 100
875„Crestline Ohio
5
1934-1938
4,500 100
5.50
r5,000 100
1934-1937
5.00
1375__Dallas, ex
536
7.000 100
5.50
1411_ _Douglas, Wyo
434 1933-1945
39.600 100
4.50
30,400 100.42
4.60
1934-1938
1234- _Drew, Miss
r4,000
531
1933-1942
27,000 100
4.25
5
1234_ _East Penn Twp.,Pa
1933-1936
4,500 100
5.00
10.56_ _Economy Two.S. D.,Pa_431 1934-1941
8.000
5.00
1937
3,500 100
6
1750_ _El Paso Co.. Tex
1934-1938
10,000 100
6.00
531 1943-1970
1411_ _Englewood, N.J
62.000 100.58
5.68
1933-1937 335,000 100
3.50
1056„Findlay, Ohio1934-1943 100.000 100.77
4.60
1056__Freeport, N. Y
411 1935-1951
4
17,000 100.01
4.49
1933-1947 100,000 100.92 3.83
1056__Glastonbury,Conn
431 1935-1044
50,000 100
4.25
19 Yrs.
1412_ _Goose Creek, Texas
104.000
All of the above sales (except as indicated) are for January
6
1934
1412_ _Grant County,Ind
40,000 100.38
5.60
1933-1947 r45,000 100
1595- -Grenada County.Miss_ _ _6
6.00
1933. These additional January issues will make the total
1056_ _Harlingen Ind. S. D.,Tex.5
1934-1960 r110,000
4.000
1235_ _Hartley County, Texas_ _5
sales (not including temporary or Reconstruction Finance
6
1934-1938
1,150 100
16
1235_ _Haskins, Ohio
6_0
.6
0
Corporation loans) for that month $36,108,130.
1215Hemphill County, Texas_ __ __ . ______
__
38.000 91
5
1934-1942
25,000 100
1595_ _Hoxie, Ark
DEBENTURES SOLD BY CANADIAN MUNICIPALITIES IN
1235__Hubbard County. Minn_5 y, 1936-1950
34,000 100
5.25
FEBRUARY.
1057_ _Kingston, N.Y.(2 iss.)_ -3.40 1934-1938 136,000 100.16 3.34
Rate. Maturity. Amount. Price, Basis.
1413_ _Lewisboro, N. Y
54 '
34-1946
65,000 100.42 5.33
Name.
Page.
1596__Licking County, Ohio__ _5
1934-1938
5
1-10 yrs. 150,000 100.13 4.97
30.000 100
5.00
880--Brant County, Ohio
1058„Linden, N.J81,000 100
1-10 yrs.
25,000
6.00
1240--Collingwood, Ont
531
‘
5
40 yrs.
r93,000 100
5
10 years
1236_ _Littlefield Ind. S. D.,Tex.
5.00
1416_ _Gananoque, Ont
30,000
97.75
5.29
1413_ _Lorain County, Ohio_ _ _ _436 1934-1938 131,245. 100.08 4.47
1062__Halifax, N.S
5
10-20 yrs
325,000
5.06
40 yrs.
r100,000
1236_ _Lubbock Ind. S. D.,Tex_5
5
1-10 yrs.
41,210 100.50 4.87
1062--Halifax, N.$
1934-1943
40,000 98.12_ 6.42
1058_ _McMinn Co., Tenn
6
6
1-20 yrs.
1062_ _Niagara Twp., Ont
9,400 100
6.00
90,000
10.5Q_ _Mahanoy Twp.S. D.,Pa_ --1934-1948
1-10 yrs.
1416-Peterborough Co., Ont--6
25.000
19,345 100.46 4.16
1596_ _Marshall County,Kan_ --4g 1934-1943
6
20 years
25,000 100.10
5.99
1416-Renfrew, Ont
1236_ _Metompkin Magisterial
1062--St. Barthelemi Sch. Mun.,
1934-1948 r17.500 100.05
Dist., Va
6
5.99
98.50 6.20
6
1933-1952
24.000
Quo
5
1934-1938 300.000 100
5.00
1596_ _MinneaPoils. Minn
Total of Canadian debentures sold in Feb-3654.610.
2,000.000
1236_ _Mississippi (State of)550,000 97
1414_ _Mississippi (State of)____ __
1237_ _Monroe County, N.Y__331 1939-1943 250.000 100.08 Irii
1934-1943
22.000
1059_ _Montgomery Co., Ohio__6
1936
1.000,000 100
1414_ _Mc unt Vernon, N.Y__ --434
4.50
1059_ _Newark, N. J
4% 1934-1981 1.200.000 100
4.75
434 1934-1943
1237_ _Newark, N. Y
55,000 100.06 4.49
Arkansas.-Legislature Passes Resolution Providing 90-Day
1414_.New York Mills, N. Y_ _5
1934-1938
12,000 100
5.00
--According to
Moratorium on Public and Private Debts.
1060_ _Normandy Con. S. D.,
Mo
436 1934-1953 225.000 101.10 4.36
Associated Press dispatches from Little Rock on March 3
1237_ _North Kingstown, R.I._ _434 1934-1956 135,000 100
4.50
both Houses of the Legislature passed a concurrent resolu1415_ _Ottumwa,Iowa _
60,800
•
tion calling for a 90-day moratorium on private and public
1060_ _Pennington Co.. Minn..- _4g 1938-1952 r35.000 100
4.25
1598__Pondera County S. D.
debts and taxes. A provision was incorporated in the
No. 10, Mont
6
1-10 yes. r d20,000 100
6.00
resolution for the appointment of a committee of five to
1415_ _Port Huron,Mich
531 1934-1942 rb1,000 100.51
5.15
1415__Prosser S. D., Wash
5
3-20 yrs.
34.378 100
5.00
draft a bill making it effective by taking the power of collec1239_ _St. Landry Parish, La_
80.000
tion away from the courts for 90 days.
1598_ _Saltaire, N. Y
6.
1935-1946
15,000 100
6.00
1061_ _Seneca County, N.Y_.._3.60 1934-1940
35,000 100.06 3.58
Bill Defeated.-Little Rock dispatches of Mar. 9 reported
1061_ _Shelby County, Ind
534 1934-1939
18.000 100.11
5.47
that the Senate had defeated, without debate, the bill
1239_ _Shreveport, La
5
1934-1963 881,000 100
5.00
1239_ _Somerville, N. J
5
1944-1948
19.000 100.08 4.99
proposing the above moratorium.
1219_ _Somerville, N. J
10,000 100
5
5.00
1599...South Haven, Mich
9,500
-Committee of Bond Owners
Carteret County, N. C.
1599_ _Springfield ,Ohio
534 1934-1958 200,000 100.27 5;17
536 1937-1954
1599 _Spencerport, N. Y
37,000 100.13
-The Committee of Bond Owners
Plans Survey of Finances.
5.49
_Stratfrrd, Conn
100
1599_
43' 1934-1943 100,000
4.75
of Carteret County (including Beaufort and Morehead City),
1753_ _Swift Co., Minn.(2 iss.)_5
3-20 yrs. 130,000 100
5.00
1416_ _Tallahatchie Con. S. D.,
plans to undertake a first-hand survey of financial condiMiss
r9.600
6
tions in the county and has asked holders of such bonds to
4
0.000 100.74 -77
1239_ _"in-ec-n^e Co., Ind .._5
1914-1041
4.141
contribute toward the expense of such proceeding. The
880„Union City, N. J
6
1934-1972 445,000
99
6.09
434
1061__Ptah (State of)
1,000,000 101.25
results of this investigation will be reported to the com_Vanderburgh Co., Ind___434 1934-1942
81,000 100.07
4.74
1061mittee, of which Paul R. Matthews, 777 North Meridian
_S
1934-1942
81.000 100.07
4.74
1061- _Vanderburgh Co.. lad_ -5
331 1934-1958
50,000 100.15 3.73
880_ _Waltham, Mass
Street, Indianapolis, is Secretary-Treasurer, and holders of
Wis_
5
1239Walworth Co.,
bonds will then have an opportunity to act upon any refund1599_.Was in 41on Twp. S. D.,
1943
10,000 101.84 4 02
431
Pa
ing plan proposed.
1599 Watertown. N. Y ____ _434 1957-1959
15,000 101.13 442
1416-Western Springs S. D.No.
-Municipal League Urges Legislative Action on
Florida.
1936-1939' 30,000 100
5
5.00
101, Ill
Debts and Taxes.
-A dispatch from Tallahassee to the
1934-1943
20,000 100.68
3.86
1416__West Reading, Pa
4
1934-1936
6,000 100
6.00
1062- _Williamson Co., Tex_ __ _6
"Wall Street Journal" of March 6 reports as follows on a
1240_ _Woodbury Co.,Iowa_ _ _ _4g 1936-1941 100,000 101.01 :
...1 7
.
proposed program of legislative action which has been
19.000
99
1600-Woodlynne, N. J
1934-1939
6
r34,000
1062_ _Yazoo City, Miss
presented to Governor Sholtz by the Florida League of
11.000 100.28
5.15
1082..Youngstown, N. Y
5.20 1937-1947
Municipalities, looking toward a more rapid and efficient
Total bond sales for February (94 municisettlement of the present financial situation:
palities, covering 119 separate issues) _k17.557.818.
The Florida League of Municipalities, through its representative. Mayor
d Subject to call in and during the earlier years and to mature in the
R. B. Gautier of Miami, has presented to Governor Sholtz its request for
latex years. k Not including $74,953,216 temporary loans or $71,402,351
legislative action regarding municipal debts and taxes. Officials of 60
loans. r Refunding bonds,
Reconstruction Finance Corporation municipal
NEWS ITEMS
Volume 136
Financial Chronicle
cities and a score of legislators attended a recent session of the league at
Winter Haven.
The report submitted to the governor proposed exemption of municipally
owned utilities from provisions of the 1931 law establishing taxes on electric
current and manufactured gas; municipal exemption from the State gasoline
tax on fuel used in automobiles performing governmental functions; a
2
-cent levy on gasoline sold within city limits, the payer to receive credit
for the amount on the State tax, and establishment of the municipal tax
to be discretionary with cities; State maintenance of city streets and bridges
which link arterial highway systems.
The League further recommended separate levies for operating expense
and debt service in municipal budgets, tax collections going first to operating
expenses and second to debt payment; prevention of mandamus action to
force bond payments unless 75% of the securities of the issue in question
are represented in the action or deposited in court; prevention of garnishment or attachment actions against cities and on money decree liens on
city property; tax exemption for all property owned by cities, counties and
school districts whether or not used for governmental purposes.
It also is recommended that whenever the debt service funds of a town,
city, county or taxing district, are insufficient to pay its matured indebtedness in full, such funds shall be applicable pro rata to the payment of all
creditors entitled to participate therein, each creditor to be entitled to
recover only such portion of such funds as the amount due him bears to
the amount due all of such creditors.
The League approve: creation of a State funding board to assist cities
in refunding their bonds, and where at least 60% of holders approve the
refunding plan, the funding board of the State would have the power to
petition the court for condemnation of bonds owned by minority
bondholders.
Indiana. —Governor McNutt Signs Bill Providing for Old
Age Pensions. -Governor McNutt has signed a bill (H.
No. 230) to establish a system of old age pensions in this
State, according to Indianapolis advices to the "United
States Daily" of Feb. 28. Maximum assistance of $180 a
year is said to be provided for indigent residents of the State
who have reached the age of 70 and who can meet certain
qualifications as to citizenship, residence in the State, lack
of financial support, &c. Pensions are not to be available
before Jan. 1 1934, according to report.
Sales and Income Tax Act Signed by Governor.—On Feb. 28
Governor McNutt signed a bill providing for taxes on the
gross incomes of individuals, retailers, wholesalers and
manufacturers, which is designed to yield a re venue of
about $14,000,000 annually. The Act is scheduled to take
effect on May 1 and the first payment under its provisions
is to be made by July 15. It is believed that court action
is likely to test the constitutionality of an income tax levied
without an amendment being approved by the voters.
The Indianapolis"News"of Feb.28 had the following to say:
Governor Paul V. McNutt to-day signed the Administration's $14.000,000
Sales and Income Tax Act, making it a law.
The Act, which drew a flood of protest from all parts of the State,imposes
a 1% tax on gross incomes of individuals and retail establishments and
; of 1% on the gross ineomes of wholesalers and manufacturers, including
,
1
mining and agriculture, but provides for a $1,000 exemption.
The measure takes effect May 1 and the first payment under it is to
be by July 15.
However, in view of the fact that there has been considerable doubt
for years in the minds of many persons versed in Indiana constitutional
law whether the Legislature, in the absence of a constitutional change,
may levy an income tax, It is expected that the law will be subjected to
court test. There have been reports that a friendly suit to test the constitutionality of the Act might be filed soon.
Administration forces, in drafting the proposal, apparently were not
unmindful of a possible court action, for the next to the last clause provides
that "if any clause, sentence, paragraph or part of this Act shall 'for any
reason' be adjudged to be invalid, the judgment should not affect, impair
or invalidate the remainder of this Act, but be confined in operation to
the clause,sentence, paragraph,or part directly involved in the controversy.'
In event of court action it is likely that a temporary restraining order
would be issued to preserve the status quo until final decision. Whether
such order would hold up the carrying out of the entire Act or would
simply affect the income feature or some other phase would be determined
by the order itself.
The measure had the most revolutionary history of any tax proposal
ever enacted in Indiana, being characterized by brief but ruthless steamroller tactics that stunned the State.
Business leaders of the State protested against the far-reaching bill
on the ground that it would strangle business and that it represented only
an additional tax burden.
Massachusetts.—Governor Ely Signs Bill Providing State
Aid for Municipalities.—On March 1 Governor Ely signed a
bill providing financial aid to cities and towns by the State,
through an emergency finance board, according to the Boston
"Herald" of March 2. It is said that, subject to approval
by the board, municipalities may obtain loans on the basis
of outstanding tax titles. The money is to be repaid to the
State as the tax titles are redeemed, with the proviso that
any part of such a loan outstanding at the end of four years
must be included in the tax levy, according to report. The
board will consist of State Treasurer Charles F. Hurley,
State Director of Accounts Theodore N. Waddell and three
appointees to be named by Governor Ely. The Act was
passed as an emergency measure and went into effect immediately, it is stated.
Minneapolis, Minn.—District Court Holds City Charter
Amendment Legally Adopted.—The District Court has held
that Amendment No. 8 to the city charter, which would
increase the borrowing power of the city by approximately
$3,000,000 for the next four years, by exempting from the
net debt all short-term notes sold in anticipation of tax
collections—V. 135, p. 2689, was legally adopted at the
general election on Nov. 8. Before the city undertakes any
financing under the amendment the State Supreme Court
will have to be asked for a decision, according to a recent
issue of the Minneapolis "Journal," which had the following
to say:
"The city cannot borrow money under provisions of amendment No. 8
ntll the State Supreme Court has affirmed a District Court ruling that the
amendment is a part of the city charter, City Treasurer C. A. Bloomquis
announced Saturday. It will be necessary for the city to appeal the District
Court ruling to the higher court, he said.
"Alderman 0. J. Turner, Chairman of the Board of Estimate and Taxation, said a motion will be made in the city council Friday ordering the
City Attorney to make the appeal.
"The court ruling held the amendment has been a part of the charter
since 30 days after the Nov. 8 election, when it was submitted to the
people. The measure is designed to reduce from about 30 days to 10 days
the time needed to approve and sell short-term notes in anticipation of tax
collections.
1747
"Immediately after Judge IL D. Dickinson's ruling was announced
Friday, Mr. Bloomquist made informal inquiries as to the willing,ness,Tof
banks to accept loans made under the amendment, lie was informed, be
said, that the banks cannot accept such loans until the higher court has
concurred in Judge Dickinson's finding."
New Jersey.—Governor Moore Signs Bill Deferring 1931-32
Deficiency Tax Payments.—The Powell bill permitting the
State Comptroller to refrain from certifying to county
collectors during the present year the deficiencies in State
school, State road, and soldiers' bonus taxes for 1931 and
1932 amounting to over $15,000,000, was signed by Governor
Moore on March 2. It was pointed out by the Governor
that if these deficiencies had to be made up during 1933
it would mean that taxpayers who had already met their
obligations would be required to contribute additional
amounts during 1933. The Act will become inoperative
on Feb. 1 1934. The Newark."Evening News" of March 1
discussed the bill, after its passage by the Legislature, as
follows:
Deficiencies in State taxes owed by municipalities will not have to be
included in their present budgets under provision of legislation adopted
by the Assembly yesterday. The bill, which passed the Senate previously.
is slated to become law to-day upon signature of Governer Moore.
Other emergency legislation was enacted by the Assembly before adjourning for the week. Speaker Otto cleared the House calendar with
passage of 18 bills, many of them Senate measures, lie said the House
was up to date with its work and was prepared to pass any legislation
next week that receives committee approval.
Without Adverse Vote.
Effect of the tax deficiency legislation, which passed without an adverse
vote, is that approximately $15,000,000 owed by municipalities for various
State taxes for 1931 and 1932 will not have to be raised by taxation this
year. The 1918 Tax Act requires the State Comptroller to compel municipalities to include unpaid State taxes in their succeeding years budget.
The deficiency bill provides these taxes will not have to be raised until the
Act expires Feb. 1 1934. It has no effect on the 1933 State taxes owed
by municipalities.
While the State will be able to pay back to municipalities such State
taxes as it receives this year, there is no provision for funding the 1931
and 1932 back taxes. The State will be short this much money from its
anticipated revenues and will be unable to pass the funds on to counties
and rutin',ipalities. Legislators did not regard this situation very seriously,
declaring the State could not collect the money anyway from municipalities
and the Act merely legalized their refusal to pay.
When the Act expires next February, however, municipalities will be
forced to raise their 1931, 1932 back taxes in one year's budget, together
with any shortage they may pile up this year.
4
New York City.—Revenue Bonds to Bear 43 % Interest.—
At an executive meeting of its Committee of the Whole held
on March 7 the Board of Estimate authorized Comptroller
Berry to fix the rate of interest on the so-called oaby"
bonds to be sold over the counter. The bonds are otherwise
known as special revenue obligations and will be issued in
denominations of $10 and over, as specified in the recently
enacted authorization—V. 136, p. 1592. It was stated by
the Comptroller on March 8 that he had fixed the interest
rate on these bonds at 43 %, using the previous issue of
4
revenue notes as a guide. The bonds will be redeemable
only in the payment of taxes. Comptroller Berry also
announced that he will accept checks or scrip, if authorized
by the New York Clearing House Association or the State of
New York. The text of the resolution passed by the Board
of Estimate and Comptroller Berry's explanation of the city's
attitude toward taxpayers and other individuals owing money
to the city, read as follows:
The Board's res,lution:
The Board of Estimate hereby grants authority to the Comptroller to fix
the rate of Interest up n the revenue notes sold from time to time, this
authority to continue till further notice from the Board. The Comptroller
is to make a report to the Board of Estimate periodically as to the progress
he is making in the sale of these notes.
The Comptroller's statement:
The city will take any kind of money except personal scrip for taxes and
other obligations. It will accept the checl s of any individual with the
understanding that no receipt for taxes or other payment will be given until
after the checks have been cleared. Last year the city had more than
10,000 chocks returned by banks because the persons who drew them had
no funds. We will take Clearing House scrip or perhaps New York State
scrip when it is issued.
New York State.—Governor Lehman Orders Two-Day
Banking Holiday—Later Extended to March 9.—Following
an all-night conference with officials of the New York
Clearing House and the Federal Reserve Bank of New
York, Governor Lehman early on the morning of March 4
issued a statement from his home announcing a two-day
legal holiday for March 4 and 6, affecting all banks in this
State. The Governor stated that his action had been rendered imperative because of the great burden placed on
New York banks by the banks of so many other States
which drew on New York for funds.
In conformity with the proclamation issued by President
Roosevelt late on March 5, declaring a National suspension
of banking activities from March 6 through March 9, a
second proclamation was issued by Governor Lehman on
March 6, formally adopting the extension for New York
State. (This subject is treated in greater detail in our
department of "Current Events and Discussions" on a
preceding page.)
Senate Passes Bill Providing Graduated Salary Cut for
State Employees.—On March 7 the Senate passed a bill
carrying out Governor Lehman's budget recommendation for
a graduated salary cut for State employees receiving above
$2,000 a year—V. 136, p. 191. It is contended the measure
would save the State about $5,000,000. The bill was
forwarded to the Assembly for consideration. It is reported
that Republicans in both Houses are -discussing a proposal
to abandon the policy set forth in the above bill and instead
seek cuts in the salaries of all State employees, including
those in the lower brackets.
Other Budget Bills Passed.—Two other budget bills were
passed by the Senate on the same day. They provide for
the suspension Of State aid for county roads and for the
1748
Financial Chronicle
ratifying of Governor Lehman's recommendation to abandon
expenditures this year of an increase of about $10,000,000
for State aid for schools which is called for at present.
Dispatches from Albany on March 8 reported that the
Republicans in the lower House had agreed upon a program
calling for reductions ranging from 5% on salariesfrom $1,500
to $2,000, up to 25% in all salaries of more than $3,000.
This program would increase the saving over Governor
Lehman's proposal by about $1,000,000.
North Bergen, N. J.—Supreme Court Denies Mandamus
Writs in Case Involving Constitutionality of State Finance
Commission.—On March 6 the State Supreme Court dismissed petitions for writs of mandamus to compel the above
township to satisfy judgments obtained against it in March
1932—V. 134, p. 2001. The. Court held that it could not
compel the township to raise its present tax rate as the
Municipal Finance Commission is handling its affairs. The
petitioners advanced the claim that the act creating the Commission is unconstitutional in that it impairs the validity of
contracts. The Court refused to rule on this point, stating
that the question of constitutionality had not been presented
before it in proper manner. A Trenton dispatch to the
Newark "News" of March 6 had the following to say regarding the case:
The Supreme Court to-day dismissed writs of mandamus to compel the
Township of North Bergen to raise the tax assessment sufficiently to pay
judgments of $453,746.85 previously obtained against the township by the
Oak Securities Co. and Edmund B. Hourigan.
Normally, the taxing authorities would be required to levy sufficient tax
to raise the money, the Court said, but out of that Municipal Finance
Commission is functicning in the township. Counsel for Mr. liourigan and
the Securities company argued that the act of last year creating the Finance
Commission is unconstitutional as impairing the obligation of contracts and
for other reasons.
The Court pointed out that the constitutional question was not properly
before it, adding that the Commission is a fedacto body operating by virtue
of a statute presumably valid. The Court said the Commission was not
made a party to the proceedings and its authority therefore could not be
determined in the present proceedings.
"Even if it were otherwise," said the Court,"it is obvious that to grant
the writ applied for in this case would be to work great confusion in the
financial affairs of the township."
Ohio.—Supreme Court Rules State Must Issue Notes to
Pay Local Assessments.—News dispatches from Columbus on
March 1 reported that the State Supreme Court had granted
a writ of mandamus on that day to °Mei us of the Upper
Scioto Drainage and Conservancy District, requiring State
Auditor Joseph T. Tracy to issue $22,527.69 in notes for the
purpose of paying off assessments levied against certain
school lands in Hardin County. The petition for the writ
is said to have set forth the complaint that the State Auditor
had declined to issue the notes in conformity with a State
law decreeing that such action shall be taken by the State
Auditor when rentals accruing from such lands are insufficient to take care of assessments levied against such
property. It was contended by counsel for the State Auditor that the State law in question was unconstitutional.
Suffolk County, N. Y.—Court of Appeals Rules $5,000,000 Bridge Bonds Illegal.—A decision was handed down by
the Court of Appeals on Feb. 28 declaring illegal the proposed $5,000,000 bond issue which would have been used
for bridges connecting Shelter Island with Long Island, thus
reversing a previous ruling by the Appellate Division and
terminating litigation of long standing—V. 135, p. 2693.
The court held that the proposal had not received an affirmative vote of two-thirds of all the county supervisors and
therefore did not comply with the law. An Albany dispatch
to the "Brooklyn Eagle" of March 1 carried the following
on the decision:
Suffolk County's $5.000.000 bond issue, which has been a matter of
furious political controversy for the past three years, was finally declared
illegal by the Court of Appeals in a decision handed down late yesterday
which reversed a previous finding of the Appellate Division.
The highest court in the State found that only six of the 10 county supervisors had voted for adoption of the bond issue plan, thus failing to comply
with the law which requires an affirmative vote of two-thirds of all the
supervisors.
The insufficient vote had been recorded despite the fact that only one
of the supervisors, Dennis O. Homan, voted against the project. Three
others—J. Augustus Hildreth of Southampton, Joseph P. Warta of Babylon
and Claude C. Neville of Brookhaven—had been members of the planning
board that approved the bond issue and for that reason were excluded from
voting on it as supervisors.
Of the total amount in bonds which it had been planned to issue, $3,400,000 was to have been spent in the construction of two bridges to connect
Shelter Island with the mainland of Long Island, and the remainder for
other public improvements.
The project originally was proposed and nursed along by W. Kingsland
Macy,Suffolk County and State Republican leader. It was bitterly opposed
by Homan and others and charges were openly made that it was a' pork
barrel" proposal. The Shelter Island bridges, it was charged, were to be
built so that Otto H. Kahn, a generous contributor to the Republican
campaign chest, might have easy automobile access to his estate on the
island.
Sponsors for the project insisted that the bridges would quickly pay
for themselves in tolls and that the whole project would help employment
in the county.
Wyoming.—Legislature Adjourns.—The 22nd legislative
session of this State came to an end on Feb. 19, after a 40
day session in which 157 Acts were passed by both Houses,
of which Governor Leslie A. Miller had signed 114 up to that
time. A subsequent issue of the Denver 'Rocky Mountain
News" had the following to say in regard to the recent
session:
-day session sine die shortly
"Wyoming's 22nd legislature adjourned its 40
after 1 p. m. to-day. The session constitutionally ended at midnight last
night, but the custom of stopping the clocks in the Senate and House
chambers was resorted to when members of the House balked at adopting
Senate amendments to the general appropriations bill.
"Senate amendments raised the total appropriations approximately
$76,000 and the joint conference committee recommended concurrence
in the changes.
,"A fight on the conference committee report in toe House tied up procedure until early this morning when the report was adopted and the increased appropriation approved.
"Three minor relief measures calling for special appropriations were
passed by the House at the Sunday morning session under suspension of
March 11 1933
the rules but died when the Republican bloc of nine in the Senate refused to
permit a similar rules suspension.
"Efforts to bring about further consideration of any measures were
dropped and the Senate marked time until the final enrolled Acts could be
signed.
"Among the more important measures which died a natural death in
the Senate were the truck regulation Bill, the Act providing for elimination
of the Department of Agriculture and the chain store tax oill.
"A total of 157 Acts were passed by both Houses, 114 of which have been
signed by Gov. Leslie A. Miller. Two measures were vetoed and 41 were
still to be acted upon. He has 15 days to consider measures still on his desk.
"Four Repunlican Senators joined with the Democratic minority late
last night to confirm the appointment of A. E. Wilde of Kemmerer to
succeed William Reeves Jr. of Evanston as State Bank Examiner. Earlier
In the session, the Republican majority, voting solidly, rejected the appointment of Leroy Joyce of Casper to the same office.
"The same combination brought about the confirmation of Ralph E.
Foe of Greybull. Louis J. O'Marr of Sheridan and Wilson S. Kimball of.
Casper as members of the Highway Commission.
"Oscar Beck (R.) of Big Piney was elected president ad interim of the
Senate by a unanimous vote."
BOND PROPOSALS AND NEGOTIATIONS
ALABAMA, State of (P. 0. Montgomery).—RECONSTRUCTION
FINANCE CORPORATION LOAN GRANTED.—The following is the
text of an announcement made by the R. F. C. on March 8:
"The Corporation, upon application of the Governor of Alabama,
to-day made available $127,935 to meet current emergency relief needs
in nine counties of that State during the period March 1 to April 30 1933.
"These funds are made available under Title I, Section 1. subsection (c)
of the Emergency Relief and Construction Act of 1932.
"In support of his application the Governor pointed out that funds
had not heretofore been requested for the nine counties. He added that
funds now available or which can be made available within the State at
this time, are inadequate to meet the relief needs in these political subdivisions.
"The R. F. C. heretofore has made available $3,167,558 to meet current
emergency relief needs in various political subdivisions of the State of
Alabama."
P./ ALBANY, Albany County, N. Y.—REPORT ON CITY FINANCES
ISSUED.—Lawrence J. Ehrhardt, City Comptroller, in a report on the
city's financial condition made public on March 4 showed that the municipality's gross indebtedness on Feb. 28 1933 amounted to $33,028,575 as
compared with $32,608,305 a year ago and that the net debt now is $17.340,960.93. The Comptroller stated that as the net borrowing capacity is
$24,492,417, based on 10% of the assessed valuation, the city has a margin
for future bonds purposes in amount of 17,151,456.07. Bonds maturing
during the present year amount to $2,227,365 and new financing in that
period is not expected to exceed $500.000. The Albany "Knickerbocker
Press" of March 5, in commenting on the report, quoted Mr. Ehrhardt as
having said that the "city's bonds to-day rank with those of the Government and the State," ana gave the following additional data:
The financial set up for Feb. 28 1932, and 1933 follows:
1932
1933.
City department
$16,92,075.00 $16,836.305.0
. 0
3,595,000.00
Street improvement
3,120,000.00
12,177,000.00
Water debt
12,983,500.00
Gross debt
33,028,575.00 32,608,305.00
Deductions—
General debt sinking fund
1,622,143.09
1,588,609.83
139,221.57
Washington Park sinking fund
143,864.24
12,177,000.00
Water debt
12,983,000.00
1,012,780.00
Levies for debt payment
971,640.00
Total
$15.687,614.93 $17,657,160.34
17,657,160.34
Net debt
17,340,960.93
244,924,170.00 243,372,639.40
Property valuations
229,399.77
222.513.23
Water supply sinking fund
"Mr. Ehrhardt further announced that street improvement bonds maturing this year amount to $678,000 and the bonding margin will be increased
that amount. Also water bonds maturing during 1933 amount to $437,000
and are included in the deductions on which the bonding margin is based.
"In my opinion, Albany's financial condition is one which no other city
can compare with favorably," said Mr. Ehrhardt. "The evidence is the
Premium on Albany bonds. We nave in addition reduced our tax rate from
$35.46 to $33 and cut the budget $466,540.15. The figures reflect the
economies and make the city's securities much more sought after than
they ever have been."
ALLEN COUNTY (P. 0. Lima), Ohio.—BONDS NOT SOLD.—The
$29,000 6% poor relief bonds offered on March 6—V. 136, p. 1232—failed
of sale, as no bids were made. Dated Dec. 31 1932 and due on March 1 as
follows: $5,100 in 1934: $5,500, 1935; $5,800, 1936; $6,100 in 1937, and
$6,500 in 1938. An effort will be made to sell the issue at private sale.
ARKANSAS, State of (P. 0. Little Rock).—INTEREST PAYMENT
DEFERRED.—According to Little Rock news dispatches the State failed
to provide $119,500 toll bridge bond interest and $575,000 highway bond
interest due on March 1. The paying agent is said to have been informed
that the State hoped to be able to make payment in a few days.
AUBURN WATER DISTRICT, Androscoggin County, Me.—
BOND REPORT.—H. J. Cook, Superintendent of the Board of Trustees,
reports that no action has been taken as yet with regard to the sale of
the $30,000 water bonds authorized on Jan. 26 to provide for the payment
of a similar amount maturing on May 20 1933—V. 136, p. 874. The
bonds, when issued, will bear interest at 3 %, be dated May 1 1933 and
mature $1,000 annually on May 1 from 1934 to 1963 incl. nin. and int.
(M.& N.) payable at the National Shoe St Leather Bank, Auburn. Legality
to be approved by attorney for the District and by Boston bond attorneys.
Financial Statement.
Real property (book value of plant)
$395871:720405
Total bonded debt (including this issue)
55,996
Sinking fund
None
Tax anticipation and all other floating debt
N.AUBURN, Cayuga County, N. Y.—BONDS AUTHORIZED.—R. W.
Swart, City Comptroller, reports that the City Council has authorized the
issuance of $400,000 bonds for poor relief purposes and to refund maturing
obligations. The bonds will be dated March 15 1933.
AVON-BY-THE-SEA, Monmouth County, N. J.—BONDS NOT
SOLD.—The issue of $42.000 69' coupon or registered general improvement bonds offered on March 7—V. 136, p. 1410—failed of sale, as no bids
were received. Dated Feb. 1 1933 and due $2,000 on Feb. 1 from 1935 to
1955, inclusive.
BALSAM LAKE SCHOOL DISTRICT (P. 0. Balsam Lake) Polk
County, Wis.—BOND SALE.—A $2,500 issue of school bonds has been
purchased by the State Retirement Board, according to the District Clerk.
BALTIMORE, Md.—DEBT SERVICE PAYMENTS AWAIT BANK
OPENINGS.—It was reported on Mar. 10 that the city will pay $1,130,000
bond interest and redeem $991,000 city stock which was due on Mar. 1 as
soon as the banking moratorium in Maryland is ended and the requisite
funds may be obtained from the municipality's cash deposits.
BELMONT COUNTY (P. 0. St. Clairsville), Ohio.—BONDS NOT
SOLD.—The issue of $50,000 6% poor relief bonds offered on Feb. 27—
V. 136,11. 1054—was not sold, as no bids were received. Dated Dec. 31
1932. Due $10,000 on March 1 from 1934 to 1938, inclusive.
BARSTOW UNION HIGH SCHOOL DISTRICT (P. 0. San Ber.
nardino) San Bernardino County Calif.—BOND ELECTION.
-4t is
reported that an election will be held on March 31 in order to vote on the
'
proposed issuance of $25,000 in high schoo addition bonds.
BERKS COUNTY (P. 0. Reading), Pa.—BONDMFFERINO.—
Samuel H. Rothermel, County Comptroller, will receive sealed bids until
10 a. m. on March 31 for the purchase of $455.000 3%,4, 44,434 or 4M%
coupon county bonds. Dated April 1 1933. Denom. $1,000. Due Oct. 1
as follows: $55.000 from 1936 to 1941 incl.; $60,000 in 1942, and $65,000
In 1943. The bonds will be registerable as to principal only. Interest due in
April and October. Bidder to name one of the above-mentioned interest
rates for the entire loan. The offering notice states that the bonds and
interest thereon will be payable without deduction for any tax or taxes.
Volume 136
Financial Chronicle
except succession or inheritance taxes, now or hereafter levied or assessed
thereon or on said bonds or on the debt secured thereby, under any present
or future law of the Commonwealth of Pennsylvania or of the United
States, all of which taxes the County assumes and agrees to pay. A certified
check for 2% of the amount bid for, payable to the order of the County
Treasurer, must accompany each proposal. The bonds are being issued
subject to the favorable legal opinion of Townsend, Elliott & Munson, of
Philadelphia.
1749
Building fund. 1930, Nos. 13-2501 to 2517, for $5.000 each, 5,4%, dated
Nov. 1 1930.
Playground fund, 1929, No. P-134, for $5,000, 6%,dated July 1 1929.
Warrants will be paid on presentation through any bank to the office of
the City Treasurer, Halsey, Stuart & Co. of Chicago or at the Guaranty
Trust Co., New York.
NOTICE OF CANCELLATION.
-V. S. Peterson, Deputy City Comptroller, announced on March 6 that the call for the payment of the following
described tax anticipation warrants has been cancelled as a result of the
bank holiday and that as soon as the situation permits further notice of
redemption will be published: Issued account of 1929 taxes, corporate
warrants, Nos. 1226 to 1233 and No. 1235, for $25,000 each, 6%. dated
April 1 1929.
SCHOOL BOARD CANCELS WARRANT CALL.
-0. J. Taylor, President of the Board of Education, announced on March 6 that the call for
the payment of the warrants listed above has been canceled due to the
Bank Holiday, adding that as soon as the situation permits notice of
redemption will again be made.
CHICAGO LINCOLN PARK DISTRICT, Cook County, Ill.
-BOND
EXCHANGE PLANNED.
-In connection with the approval on Feb. 28
of the issuance of $2.787.000 refunding bonds
-V. 136, p. 1594
-it is reported that these bonds are to be given in exchange for maturing obligations which the district is unable to meet because of delay in tax collections.
BETHEL Clermont County, Ohio.
-RECONSTRUCTION FINANCE
CORPORATION BOND PURCHASE.
-The following is the text
liquidating loan announcement issued by the R. F. C. on March of a self• "The Corporation to-day agreed to purchase $35.000 bonds of 7:
Village
of Bethel. Ohio, bearing interest at the rate of 6%,the money thebe used
to
to construct a new waterworks.
"It is estimated that 56 men will be employed three months on the
project on the basis of a 30
-hour work week. Employment will be
Indirectly through the purchase of pipe, meters, storage tank and provided
pumping
equipment.
he project includes two wells (already drilled), a
elevated steel storage tank of 100.000 gallons capacity,pumping station,
and distribution
system to consist of6 miles of8
-inch to 2-inch cast
"The village now has no public water supply iron pipe with hydrants.
and
protection,
except from a few private wells and cisterns. The newno fire system will
water
reduce the cost of fire insurance."
BLACKFORD COUNTY (P. 0. Hartford City), Ind.-BONM
CHICAGO SANITARY DISTRICT, Cook County, III.
-DEFAULTS
AUTHORIZED.
-The Board of County Commissioners has adopted an
ON PRINCIPAL AND INTEREST CHARGES.
-It Is reported that the
ordinance authorizing the issuance of $40,000 poor relief bonds.
District defaulted in the payment of $326.180 bond principal and interest
charges which became due on March 1, bringing the total debt. service in
BOSQUE AND HAMILTON COUNTIES COMMON COUNTY LINE
default since January to $13,939,201. Ross Woodhull. Chairman of the
SCHOOL DISTRICT NO. 6 (P. 0. Meridian), Tex.
-BOND SALE.
- finance committee, said that he did not know when any money to meet
We are informed that the $5,000 5% school bonds approved by the Attorney
the obligations would be forthcoming, according to the report.
General in September
-V. 135, P. 2371
-have been sold as follows: $2,600
SO the State Permanent Fund, and $2,400 to the county fund.
CHICOPEE, Hampden County, Mass.
-TEMPORARY LOAN.
The City Treasurer informs us that a $175.000 revenue-anticipation note
BRADDOCK, Allegheny County, Pa.
issue was sold privately recently throinKh the National Shawmut Bank of
-ADDITIONAL INFORMATION.
-The issue of $50,000 6% tax anticipation notes authorized to
Boston at 5% discount basis. Due on Dec. 8 1933.
provide funds for current operating purposes, mentioned in V. 136. P. 1593.
CINCINNATI, Hamilton County, Ohio.
-BOND RETIREMENTS
has been purchased by E. H. Rollins & Sons of Philadelphia, according to
lADE--REPORT OF SINKING FUND TRUSTEES.
-The Board of
Joseph R. Shermer, Borough Secretary.
Sinking Fund Trustees announced that provision had been made with
the Provident Savings Bank & Trust Co., of Cincinnati, and the Irving
BREMERTON, Kitsap County, Wash.
-BONDS CALLED.
-It is
Trust Co., of New York, fiscal agents for the city, to make payment
reported that G. L. Nutter, City Treasurer, is calling for payment the
of approximately $WAM in principal and interest on city and board
following bonds: Nos. 166 to 196 of Local Impt. Dist. No. 106. and Nos.
of education bonds which became due on March 1. The consolidated
103 to 117 of Local Impt. Dist. No. 107.
report of the Trustees at the close of business on Feo. 28 1933 showed that
BUTLER, Butler County, Pa.
-BOND SALE.
-The $100.000 4h %
the total bonded indebtedness of the city was $103.471,206.48. as comcoupon series B funding bonds offered on Feb. 24-V. 136, p. 1054
pared with 5103.120.476.33 on Dec. 31 1932. according to the Cincinnati
-were
awarded to Leach Bros.. of Philadelphia, the only bidder, at par plus a
"Enquirer" of March 1 which commented further as follows:
premium of $250, equal to 100.25, a basis of about 4.22%. Dated Feb. 1
"During the two-month period, general bonds outstanding increased
1933. Due $10,000 on Feb. 1 from 1938 to 1947 incl.
from $96.918599.79 to $97,251,799.79. Assessment bonds outstanding
increased from $6,016,916.54 to $6,034,409.69. The remainder of the
CALIFORNIA, State of (P. 0. Sacramento).
-RECONSTRUCTION
city's debt consists of a note for $185,000 issued in anticipation of the
FINANCE CORPORATION LOAN GRANTED.
-The following announcecollection of intangible taxes which is still unpaid.
ment of a relief loan was made by the R. F.0.on March 3:
"The consolidated statement of the Trustees of the Sinking Fund. issued
"Upon application of the Governor of California, the Corporation to-day
at the close of business last night, is as follows:
made available $4,186,854 to meet current emergency relief needs in 12
Assets.
counties of that State during the months of March and April 1933. These
Total cash
$1,431.003.60
funds are made available under Title I, Section 1, subsection (c), of the
&less cash in interest fund
646.990.03
Emergency Relief and Construction Act of 1932.
"The Governor stated that the Legislature has under consideration
Cash, redemption fund
$784.013.57
methods of securing the immediate passage of measures necessary to secure
Investments
35.405.820.05
funds for emergency relief in the State. The R. F. C. heretofore has made
available 52.342.385 to meet current emergency relief needs in various
Total sinking fund
336.189.833.62
political subdivisions of the State of California."
Balance-excess of liabilities over sinking fund
67.281.372.86
ADDITIONAL LOAN GRANTED.
-The following is the text of an
announcement made by the Reconstruction Finance Corporation on
Total
$103,471.206.48
March 8:
Ltabillties.
"The Corporation, upon application of the Governor of California,
General bonds (other than waterworks and Cincinnati
to-day made available $22,714 to meet current emergency relief needs
Southern By.)
$60,499,769.31
in Imperial County for the period March 15 to April 30 1933.
Waterworks bon
bonds
14,920.030.48
''These funds are made available under Title I, Section 1, subsection (c)
Cincinnati Southern By. bonds
of the Emergency Relief and Construction Act of 1932.
Construction
$14.932,000
"In support of his application the Governor stated that funds now
Terminal
6,900,000
available or which can be made available at this time within the State
21,832,000.00
are inadequate to meet the relief needs.
"The R F. C. heretofore has made available $6.529,239 to meet current
Total general bonds
$97.251.799.79
emergency relief needs in various political subdivisions of the State:*
Assessment bonds (paid by special assessment)Bonds
CAMBRIDGE, Guernsey County, Ohio.
$4,718,106.69
-BOND PURCHASE
AGREEMENT CANCELLED.
Notes
1,316,300.00
-Acting upon the request of Ed. F. Heyclinger. attorney for the company, the city council on Fey. 28 voted to
6,034,406.69
permit Stranahan, Harris & Co., of Toledo, to cancel their contract to
Note-Anticipation of collection of current revenue__ _ _
purchase. as 4,1s. the issue of $25,000 sanitary sewer construction bonds
185,000.00
which was offered for award on Feb. 9-V. 136, p. 693. The release was
Total
sought because of general financial conditions, according to Mr. Heydinger.
$103,471.206.48
a For payment of interest not yet due.
The bonds bear date of Oct. 15 1932 and are scheduled to mature serially
on Oct. 15 from 1933 to 1938 incl.
CLARK COUNTY (P. 0. Vancouver), Wash.
-BONDS NOT SOLD.
-The $115,000 issue of funding bonds offered for sale on Feb. 25-V. 136.
CAMPBELL CITY SCHOOL DISTRICT, Mahoning County, Ohio.
-was not sold as no bids were received. Interest rate not to
-BONDS NOT SOLD.
P. 1233
-The issue of $24,000 6% refunding bonds offered
exceed 6%. Due in from 2 to 20 years after date of issuance.
on March 6-V. 136, p. 1233
-was not sold, as no bids were received.
Dated March 1 1933. Due Oct. 1 as follows: $1,000 from 1934 to 1937
BONDS RE
-OFFERED.
-It is stated that on March 2 the County
incl.. and $2,000 from 1938 to 1947 incl.
Commissioners ordered Dale McMullen, Prosecuting Attorney. to prepare
advertisements calling for bids on March 25. on $62.000 of the above
CANAAN TOWNSHIP, Morrow County, Ohlo.-BOND OFFERING.
bonus, to bear interest at 7%. Mr. McMullen reports that this higher
-L. D. Albright, Clerk of the Board of Trustees, will receive sealed bids
rate of interest is Inadie possible under the law because the bonds are now
until 8 p.m. on March 24 for the purchase of a 6% road improvement bond
to be used exclusively for the refunding of warrants outstanding, whereas
in amount of $695. Dated .April 11933. Due as follows: $35 March
Issue
the first offer included 525.000 worth of bonds designed as a loan to provide
and Sept. 1 from 1934 to 1942, incl., and $35 March and $30 Sept. 11943.
cash to replenisn the County current expense fund. It is said the new issue
Bids for the bonds to bear interest at a rate other than 6%. expressed in a
maedoii the lirste redeemed in 10 years instead of in two years. as Promultiple of
or 1%. will also be considered. A certified check for 5% of vidy pllonalfy b issue.
the bonds bid for, payable to the order of the above mentioned Clerk,
accompany each proposal. Transcript of proceedings will be furmust
CLARKSDALE, Coahoma County, Miss.
-BONDS APPROVED.nished the successful bidder.
An issue of 3100.000 6% refunding bonds is reported to have been approved as to legality by Benj. H.Charles of St. Louis. Dated March 1 1933.
CANTON, Stark County, Ohio.
-NO BIDS.
-Samuel E. Barr. City
Auditor, reports that no offers were submitted for the issue of $28,792.74
CLIFTON, Passaic County N. J.
-BOND ORDINANCES AP6% special assessment street improvement bonds placed on sale March 7
,
PROVED.
-The city council iiassed on final reading Feb.21 three ordinances
. 136, p. 1233. Dated Feb. 1 1933.
providing for the issuance of 1.427,000 bonds,comprising issues of 5703.000
general Improvement, $288,000 water, and a further $436,000 for water,
CASS COUNTY (P. 0. Logansport), Ind.
-BONDS NOT SOLD.
- this latter to pay
part of the city's share on the North Jersey water project.
No bids were obtained at the offering on March 4 of $70,000 4,4% coupon
The bonds, it is pointed out, are not new issues as they were previously
poor relief bands.
-V. 136. p. 1233. Issue bears date of Jan. 1 1933 and
authorized and failed of sale during 1932.
is to mature $7,000 semi-annually on May and Nov. 15 from 1934 to 1938.
Incl. Marion Flory, County Auditor, states that re-advertisement of the
CLINTONVILLE SCHOOL DISTRICT (P. 0. Clintonville),
Issue is required.
Waupaca County, Wisc.-BONDS VOTED.
-It is reported that at an
CASS COUNTY SCHOOL DISTRICT NO. 52 (P. 0. Erie), N. DA. election held on Feb. 24 the voters unanimously approved the issuance of
$33,000 in 5% semi-annual school bonds.
-CERTIFICATE OFFERING.
-Sealed bids will be received until 2 p.m.
on March 13. according to report, by James Beith, District Clerk, for the
COLORADO SPRINGS,El Paso County,Colo.
-BONDS CALLED.
purchase of $1.000 5,4% semi-ann. certificates of indebtedness. Due in
It is reported that the following 4% bonds are called for payment at the
one year. A certified check for 5% must accompany the bid.
office of the County Treasurer: On March 15, No,. 1 to 15 of water refunding bonds, Series No. 63. Dated Aug. 15 1917. Due on Aug. 15
CHESAPEAKE, Lawrence County, Ohio.
-BONDS NOT SOLD.
- 1936. On
March 16, Nos. 66 to 100 of water refunding bonds, Series No.
The issue of $1,200 6% municipal jail construction bonds offered on Feb.
59. Dated Feb. 16 1914. Due on Feb. 16 1934.
4-v. 136. p. 523
-failed of sale. as no offers were submitted. Dated
March 1 1933 and due $100 annually on March 1 from 1934 to 1945 incl.
COLUMBUS, Franklin County, Pa.
-MATURITY.
-The $94,000
4 h% street flushing and cleaning bonds purchased on March 2 by the
CHESTERTON, Porter County, Ind.
-BOND SALE.
-The issue
e vestment 1
n on sept Board 4.V. 136, p. 1594-bear date of March 15 1933
3
of $15.000 6% coupon funding bonds offered on March 3-V. 136. p.
ane maLynr
Trd ur I
"
1595
-was awarded at par and accrued interest to the Old-First National
Co. of Fort Wayne, according to Carl G. Nordstrom, Town Clerk The
COLWYN SCHOOL DISTRICT (P. 0. Derby) Delaware County,
be dated on or about March 1 1933 and mature $1,500 on
Pa.
bonds are to
-BONDS NOT SOLD.
-The issue of 560.000 coupon school bonds
offered at not to exceed 4%% interest on March 6-V. 136. p. 1234
June 30 and Dec. 31 each year from 1934 to 1938 incl. Kent, Grace &
-was
not sold, as no bids were received. Dated March 1 1933 and due on March 1
Co. or Chicago bid par and accrued interest plus a premium of $1.
as follows: $10,000 in 1943, 520,000 in 1953, and $30,000 in 1963.
CHICAGO,Cook County, III.
-WARRANT REDEMPTION NOTICE.
-O.J. Taylor. President of the Board of Education, announced on March 1
CORINTH, Alcorn County, Miss.
-BOND SALE.
-A $2,500 block
of 6% refunding bonds has been purchased by John Nuveen & Co., of
that payment will be made on or before March 7 of the following described
Chicago. Dated May 1 1932. Legality approved by Benj. H. Charles of
tax anticipation warrants:
St. Louis. These bonds are said to be part of an authorized issue of $13,600.
Educational fund, 1929, Nos. E-1008 to 1010. for $100,000 each. 6%,dated
April 11929, and Nos. E-1011 to 1071, for 51.000 each, dated July 1
CORINTH UNION FREE SCHOOL DISTRICT (P. 0. Corinth),
1929.
Saratoga County, N. Y.
-BOND ELECTION.
-At an election to be held
Educational fund. 1930. Nos. E-1666 to 1704,for $5,000 each. 5,1 %,dated
on March 15 the voters sill consider a proposed issue of $250,000 bonds to
Sept. 11930.
finance the construction of a Junior high school.
Building fund. 1928, Nos. B-3801 to 3807, for $5,000 each, 6%. dated
• July 11929.
CRANESVILLE SCHOOL DISTRICT, Erie County, Pa.
-BONDS
Building fund, 1929, Nos. 13-4550 to 4624, for $1,000 each, 6%. dated
FAIL OF SALE.
-The issue of $4,000 5% coupon school bonds offered
on March 6-V. 136, p. 1234-proved unsuccessful of sale, as no bids
July 1 1929.
1750
Financial Chronicle
were submitted. Dated Jan. 1 1933 and due $500 on Jan. 1 from 1935 to
1942 inclusive.
CUSHING, Payne County, Okia.-.SUPREME COURT DENIES
-The "Electrical World" of
APPROVAL OF POWER BOND ISSUE.
March 4 carried the following report on the refusal of the State Supreme
Court to approve an $85,000 bond issue to be used for the construction of
electric lighting facilities in this city:
"City officials of Cushing, Okla., were without authority to issue an
$85,000 series of bonds for the purpose 'of constructing an electric light
equipment, distribution and trasnmission lines and furnishing electric
current to the city,' when the voters had authorized a $300,000 issue for
the purpose of 'constructing an electric plant, distribution and transmission
lines and furnishing electric current to the city,' the Supreme Court held
recently in refusing to grant a Writ of mandamus directing the AttorneyGeneral to approve the smaller issue. Following the city election Cushing
officials decided to construct only the distribution and transmission lines,
without the plant, as favorable electric rates were obtained from the utility
supplying the city."
CUYAHOGA FALLS CITY SCHOOL DISTRICT, Summit County,
Ohio.
-BOND OFFERING-A. B. Season, Clerk-Treasurer of the Board
of Education, will receive sealed bids until 12 m. (Eastern standard time)
on March 27 for the purchase of $23.000 6% refunding bonds. Dated
April 1 1933. Denom. $1,000. Due $1,000 semi-annually on April and
Oct. 1 from 1934 to 1945 incl. Bids for the bonds to bear interest at a rate
other than 6%,expressed in a multiple of )1 of 1%. will also be considered.
A certified check for 2% of the bonds bid for, payable to the order of the
above-mentioned official, must accompany each, proposal.
DAVISON COUNTY (P. 0. Mitchell), S. Dak.-BOND OFFERING.
-Sealed bids will be received until 10 a. m. on March 31 by W. L. Comstock, County Auditor, for the purchase of a $15,000 issue of coupon
county building bonds. Interest rate is not to exceed 5%, payable semiannually. Denom. $500. Dated May 1 1933. Due serially in 20 years.
Purchaser required to furnish his own opinion. These bonds were voted
at the general election on Nov. 8-V. 135, p. 3722. A certified check
for 2% of the amount bid is required.
-The
DECORAH, Winneshiek County, lowa.-BOND DETAILS.
$1.620 issue of sewer improvement bonds that was turned over to P. J.
-V.136, p. 1594
Johnson & Sons, of Decorah, in payment of the-contract
bears interest at 5%, payable on May I. Denont. $180. Dated Nov. 2
1932. Due $180 from 1934 to 1942 incl. Optional on call before maturity.
-BOND ISSUE OPPOSED.
DELAWARE, Delaware County, Ohio.
-Local citizens have filed a petition with the City Council protesting
against the proposal to issue $740,000 5% mortgage bonds, as provided
for in an ordinance adopted by the Council in December 1932-V. 135,
P. 4583. The bonds would be issued to finance the purchase of the present
properties of the Delaware Water Co. or pay for the construction of a
new municipal water system. The petition asks that the paoposed bond
issue be submitted for consideration at an election called for that purpose.
-NOTES NOT SOLD.
DELAWARE COUNTY (P. 0. Muncie), Ind.
Although a number of inquiries were received regarding the offering, the
county failed to obtain a bid for the issue of $97,300 5% poor relief notes
-according to County
scheduled for award on Feb. 25-V. 136. p. 1056
Auditor W. Max Shafer. The issue will be reoffered for award at a later
date. The notes bear date of Feb. 15 1933 and mature in amount of $48,650
on May and Nov. 15 1934.
-Wm. F. Mc-BOND CALL.
DENVER (City and County), Colo.
Glone. Manager of Revenue, is said to be calling for payment at par on
March 31, on which date interest shall cease, various storm sewer, sanitary sewer, surfacing inapt. alley paving and street paving bonds. Upon
the request of the holders deny of these bonds retelved ten days before the
expiration of the call, it is stated by Mr. McGlone that he will arrange
for their payment at the Bankers Trust Co. of New York City, but not
otherwise.
-We are
-CORRECTION.
DILLON COUNTY (P. 0. Dillon), S. C.
informed by the Clerk of the Board of Supervisors that the report appearing
In V. 136. p. 1594,saying that a bill had been signed permitting the county
to borrow $125,000 to pay off past indebtedness is incorrect, in that the
county had merely been given the authority to refinance an obligation due
to the State Sinking Fund Commission,
-WARRANTS
DOUGLAS COUNTY (P. 0. Waterville), Wash.
-It is reported that various school, current expense and PaliCALLED.
sades Irrigation District warrants were called for payment at par at the
Office of the County Treasurer on Feb. 24.
-BOND DETAILS.
DUBUQUE COUNTY (P. 0. Dubuque), Iowa.
We are informed that the $61.664.49 issue of poor relief bonds that was
sold recently
-V.136, p. 1594-was purchased by Glaspell, Vieth & Duncan
of Davenport, as 55, for a premium of $70, equal to 100.11.
DULUTH INDEPENDENT SCHOOL DISTRICT P. 0. Duluth)
-BOND FUNDING ADTHOL7ZED.-The
St. Louis County, Minn.
State Legislature is reported to have passed a bill which will enable the
School liolzu to fund $1,000.000 outstancting warrants and put the school
system on a cash basis.
-CORRECTION.
-We are in'DURHAM, Durham County, N. C.
formed by W. E. Easterling. Director of the Local Government Commission, that this city has not advertised for sale a 3500.000 issue of sewage
disposal plant bond anticipation notes, as reported in V. 136. p. 1594.
-PROPOSED
DUTCHESS COUNTY (P. 0. Poughkeepsie), N. Y.
AWARD POSTPONED -Moses Lamont, County Treasurer, announced
on March 6 that the proposed sale of $150,000 not to exceed 6% interest
-has
coupon or registered bonds, scheduled for March 8-V. 136, p. 1594
been postponed indefinitely due to the general banking holiday now in
effect.
-BONDS AUTHORIZED.ELMIFtA, Chemung County, N. Y.
Governor Lehman has signed a bill amending Chapter 475 of the Laws of
1906 and authorizing the city to issue up to $700,000 bonds to provide funds
for the payment of expenses of the Department of Public Relief and the
Health Department, also for the payment of expenses incurred in the conduct of the regular annual election. The bonds are to bear interest at not
more than 6% and mature in five annual instalments.
-BOND DETAILS.
EL PASO COUNTY (P. 0. El Paso), Tex.
The $10.000 McKelligion Canyon bonds that were purchased locally at
interest at 6% and were sold to A. Schwartz
-V. 136, p. 1411-bear
par
of El Paso. Due $2,000 from April 15 1934 to 1938 incl.
-TECHNICAL DEFAULT MADE:
ELYRIA,Lorain County, Ohio.
As a result of the banking restrictions obtaining throughout the co ntry,
the city has been forced to default temporarily in the payment of 325,000
bond principal and interest charges, according to A. C. Schillernan, City
Auditor. Mr. Schilleman stated that funds to make payment are on
deposit in the city's banking depositary and said that the present delay
in meeting the debt service charges was the first of its kind experienced
by the municipality.
-BOND OFFEREMAUS SCHOOL DISTRICT, Lehigh County, Pa.
-Charles F. Wagner, District Secretary, will receive sealed bids
ING.
until 7 p. m. on March 15 for the purchase of 25,000 3% school bonds.
Dated March 15 1933. Dencens. $500 and 100. Due March 1 1958,
optional three years from date of issue. Interest is payable in March and
September. Bids are invited for any one bond or for any number of bonds
of the issue. A certified check for 10% of the bond or bonds bid for must
accompany each proposal.
-BOND OFFERING.-Sealod
FARIBAULT, Rice County, Minn.
bids will be received until March 28, according to report, by the City
Clerk, for the purchase of a $30,000 issue of city bonds. Interest rate is
not to exceed 4%. payable semi-annually. Denom. $1,000. Due $5,000
from 1934 to 1939- inclusive.
-REQUEST CANCELLATION
FINDLAY, Hancock County, Ohio.
-The McDonald-Callahan-Richard
OF BOND PURCHASE CONTRACT.
Co. of Cleveland has asked that it be released from its agreement to purchase $100.000 4J4% public library construction bonds, and that the
certified check in amount of $1,000 sent to the city to bind the proposal
be returned. The investment house was awarded the issue on Feb. 6 at
a price of 100.77, a basis of about 4.60%-V. 136, 13. 1056. In requesting
cancellation of the award, the firm said that the action was necessary as
the limit on withdrawal deposits in Cleveland had made it impossible to
conclude the transaction. Fred R. Hover, City Solicitor, replied to the
March 11 1933
effect that the city expected the bond house to complete its contract and
offered a "reasonable time" in which to do so under the circumstances,
It is said.
(P. 0. Dearborn), Wayne County,
FORDSON SCHOOL DISTRICT'
-NOTE OFFERING-H. S. Mitchell, Business Manager of the
Mich.
receive sealed bids until 8 p. m.(Eastern standard
Board of Education, will
time) on March 14 for the purchase of $29.000 not to exceed 6% interest
delinquent tax anticipation notes of 1931, to be dated March 15 1933
and subject to redemption at any time by the Board of Education, on
the publication of a notice 10 days in advance of the date ofsuch redemption
In the official publication of the minutes of the Board, but no later than
May 1 1935. Principal and interest (at maturity) are payable at the
office of the Board. Denom. to suit purchaser. A certified check for
5% of the amount bid, payable to the order of the Board of Education,
must accompany each proposal. The District will furnish legal opinion
of Miller, Canfield, Paddock & Stone of Detroit and deliver properly
executed notes.
-BOND SALE-George
FOUNTAIN HILL SCHOOL DISTRICT,Pa.
W. Stehly, Secretary of the Board of School Directors, reports that Leach
Bros. of Philadelphia have purchased an issue of $36,000 41i % school
bonds at a price of 105.05, a basis of about 3.90%. Due on Feb. 1 as
follows: $10.000 in 1943, $12,000 in 1953 and 314,000 in 1963. An issue
-V. 135
of $36,500 bonds was voted at the general election last November
p. 3385.
1ELD HEIGHTS CITY SCHOOL DISTRICT, Cuyahoga
G
-BONES READY FOR EXCHANGE.-lienry L. Mocl,
County, Ohio.
Clerk-Treasurer of the Board of Education, reports that the 330,000 6%
refunding bonds, comprising issues of 320,000 and $10,000, due in equal
amounts from 1934 to 1943 incl., which were scheduled for sale on Dec. 30
-are now ready for exchange at the Central United
1932-V. 135, p. 4415
National Bank, of Cleveland. at par and accrued interest, for District
obligations of like amount. The refunding issues are dated Dec. 1 1932.
-BOND SALE.
-The 5100,0006% refundGARY, Lake County, Ind.
ing bonds, due in 10 years from date of issue, offered on March 9-V. 136,
-were awarded at a price of par to Kent. Grace & Co of Chicago.
Ir• 1595
The bonds are dated as follows: 350,000. Aug. 29 1933: $?0,000. March 1
1933:320,000, Dec. 15 1933; $6,000, June 1 1933, and $4,000. Aug. 1 1933,
-BONDS
-LAKE, Ashtabula County, Ohio.
GENEVA-ON-THE
-The offering en Feb. 17 of $16.405.38
UNSUCCESSFL LLY °MIED.
-proved unsuccessful. i's no bids for
-V. 136, p. 876
refunding bents
6%
the issue were submitted. Dated Oct. 1 1932 and due serially on Oct. 1
from 1934 to 1942, Inclusive.
-LOAN GRANTED BY REGEORGIA, State of (P. 0. Atlanta).
-The following report on
CONSTRUCTION FINANCE CORPORATION.
the granting of a relief loan was issued by the R. F. C. on March 9:
application of the Governor of Georgia, to-day
"The Corporation, upon
made available $79,712 to meet current emergency relief needs in six counties for the period March 1 to April 30 1933.
"Then funds are made available under Title I, Section 1, subsection (c)
of the Emergency Relief and Construction Act of 1932.
"The R. F. C. heretofore has made available $711.203.22 to meet current
emergeng relief needs in various political subdivisions of the State of
Georgia.'
-GERMAN FLATS (P. 0. Mohawk), Herkimer County, N. Y.
BOND OFFERING PLANNED -Frank A. Schmidt, Town Attorney,
has been authorizer] to prepare the necessary papers providing for the
sale of an Issue of $100,000 relief bonds, due in 10 annual instalments.
GLOVF.RSVILLF., Fulton County, N. Y.-/OND S.11..E.--Frank
Burton of Gloversville, purchased on Feb. 23 an issue of $7,000 5%, improvement bonds at n-..* olus a nremium of $10, equal to 100 14, a b".Sf a of about •
4.93 . Due as follows: $2.000 from 1934 to 1936.incl., and $1.000 in 1937.
GRANITE CITY GRADED SCHOOL DISTRICT NO. 126, Madison
-BONDS A UTHORIZED.-The School Poard passed a
County, III.
resolution on Feb. 24 provining for an Issue of 576.000 5% funding bonds,
mature on March 1 as follows: 55.000 from 1938 to 1940, incl.; $8.000.
to
1941 to 1944: $9,000 in 1945. and $10,000 in 1946 and 1947. Payable at
the First National Bank, Chicago. Issuance of the bonds is subject to
approval of the State Legislature.
-The
-BOND DETAILS.
GULFPORT, Harrison County, Miss.
$100.000 issue of 6% semi-ann. port impt, bonds that was purchased at par
-is dated
Finance Corporation-V. 136. D. 1412
by the Reconstruction
Oct. 1 1932. Legality approved by Benj. H. Charles of St. Louis.
-3150.000 LOAN OBTAINED.
HARRISBURG,Dauphin County,Pa.
-The city has obtained a loan of $150.000 from three local banks in
order to pay operating expenses pending collection of the 1933 taxes.
HARRISON WATER DISTRICT NO. 2 (P. 0. Harrison), West.
-BOND ISSUE BILL SIGNED -Governor Lehcheater County, N. Y.
man has signed a bill legalizing the acts and pr ceedings of the Town Board
and Water Commissioners in relation to the election held on Oct. 28 1932,
at which $12.000 fire truck purchase bonds were authorized.
-The $250,000 issue
-BOND SALE.
HOBART, Kiowa County, Okla.
of water works extension bonds offered for sale on March 3-V 136, p.
-was sold to the Reconstruction Finance Corporation as (Is at par.
I595
Due $12,000 from 1938 to 1957 and $10,000 in 1958. No other bids were
received.
(The R. F. C. agreed to purchase these bonds in a notice issued on Nov. 1
-V. 135. p. 3196.)
HOPEWELL TOWNSHIP SCHOOL DISTRICT (P. 0. New Shef-C. C. Bell,
-BOND OFFERING.
field, R. F. D.), Beaver County, Pa.
District Secretary, will receive sealed bids until 7:30 p. m. on Marcn 29
,
for tne purchase of $15,000 435% school bonds. Dated April 1 1933.
Denom. $1,000. Due $5,000 on April 1 in 1938, 1943 and 1948. Interest is
payable in April and October. A certified check for $1.000 must accompany
each proposal. Bids will be opened at the offices of Craig & Rowley, 382
Franklin Ave., Aliquippa.
HORSEHEADS (P. 0. Elmira Heights), Chemung County, N. Y.
-A bill authorizing the town to issue
ASSEMBLY PASSES BOND BILL.
$100.000 bonds to provhte for the payment of $28,800 due on a jungment
obtained by the village of Elmira Heights against the town and to provide
funds for public welfare relief during 1933 has been passed by the Assembly,
and is now up for consideration in the Senate.
-The
-BOND SALE.
HOWARD COUNTY (P. 0. Kokomo), Ind.
-were
561.486 6% poor relief bonds offered on March 3-V. 136, pi. 1412
awarded to Walter, Woody & Heirnerdinger, of Cincinnati, and C. W.
McNear & Co., of Chicago, jointly, at par plus a premium of $100, equal
to 100.16, a basis of about 5.96%. Dated March 3 1933. Due $3,415.80
May and Nov. 15 from 1934 to Oat, incl., and $3,415.88 May and
Nov. 15 1942.
HUME SCHOOL DISTRICT NO. 24 (P. 0. Amidon), Slope County,
-Sealed bids will be received until
N. Dak.-CERTIFICATE OFFERING.
2 p.m. on March 13 by W. D. Mahoney, District Clerk,for the purchase of
$1,000 certificates of indebtedness. Interest rate is not to exceed 7%.
payable semi-annually. Dated March 13 1933. Due on Sept. 15 1934. A
certified check for 5% must accompany the bid.
-John C.
ILLINOIS (State of).-PINANCIAL STATEMENT.
Martin, State Treasurer, in his report of the financial operations of the
State during the month of February summarized the indebtedness outstanding on March 1 1933 as followed
Called bonds outstanding which have ceased to draw int. viz.:
New internal improvement stock
fa.00.6
New internal improvement interest stock, payable
500
after 1878
One old internal improvement bond
Twelve canal bonds
0
1, 00
12.0
$17,500
145,500.000
State highway bonds
37,180,000
Soldiers' compensation bonds
6,003.000
Waterway bonds
20,000,000
Emergency relief bonds
Total bonded debt
Tax anticipation notes hold by Motor Fuel Tax fund
Tax anticipation notes held by Agricultural Premium fund
Total indebtedness
$208,700.500
10,400.000
300.000
$219,400.500
Volume 136
Financial Chronicle
-It is announced
-BONDS CALLED.
IDAHO, State of (P. 0. Boise).
by Myrtle P. Enking, State Treasurer, that an and after April 1, on which
date interest will cease, the following bonds will be paid at the office of
the State Treasurer or at the Chase National Bank in New York: $4.000
%
4( general refunding of 1925. Nos. 29 to 32: $4,000 4%% State highway
refunding of 1925, Nos. 29 to 32, and $25,000 4 X% Capitol Building
refunding of 1925. Nos. 176 to 200.
INDIANA, State of (P. 0. Indianapolis).-RECONSTMMITION
FINANCE CORPORATION LOAN GRANTEO.-The following report on
the granting of a relief loan was made by the R. F. C. on March 3:
"The Corporation, upon application of the Governor of Indiana, to-day
made available $1,040,256 to meet current emergency relief needs in 11
political subdivisions of that State during the months of March and April.
1933. These funds are made available under Title I, Section 1, subsection
(c), of the Emergency Relief and Construction Act of 1932.
"The Governor stated that the State Legislature has adopted very liberal
measures giving Indiana townships free rein in solving their own relief
problems. It is also indicated from the Governor's office that the State is
expected to take immediate action on measures which will provide approximately $1,800,000 for poor relief to be administered under the supervision
a the Governor's Commission on Unemployment Relief.
"In further support of his application. the Governor pointed out that a
subsistence garden is planned again this year. Such a program has been
carried on for the past few years and has proved a source of great helpfulness in the State.
"The R. F. C. heretofore has made available $2,314,004 to meet current
emergency relief needs in various political subdivisions of the State of
Indiana."
IOWA,State of (P.O. Des Moines).-RE'JONSTRUCTION FINANCE
CORPORATION LOAN OR:INT.-The following is the text of a loan grant
announcement made by the R. F. C. on March 9:
"The R. P. C., upon application of the Governor of Iowa, to-day made
available $82,9911 to meet current emergency relief needs in nine political
subdivisions of that State during the months of .March and April 1933.
"These funds are made available under Title I, Section 1. subsection
(e) of the Emergeacy Relief and Construction Act of 1932.
"The R. P. C. heretofore has male available $1.488.112 to meet current
emergency relief needs in various political subdivisions of the State of Iowa."
-BILL INTRODUCED TO
IOWA, State of (P. 0. Des Moines).
INCREASE LITARRANTS.-According to Des Moines hews dispatches on
Mar. 9 all increase in the amount of anticipatory warrants which may be
issued under the State sinking fund would be possible under a bill introduced In the House. The maximum amount of such warrants would be
$15,000,000 instead of $3,500,000 as at present. The interest rate would
be not to exceed 4%.
-The city
-LOAN NOT SOLD.
IPSWICH, Essex County, Mass.
failed to receive a bid at the offering on March 3 of an issue of $100,000
revenue anticipation notes, payable $50,000 on Oct. and Nov. 10 1933.
-BIDS REJECTED AT
JAMESTOWN, Chautau4ua County., N. Y.
OFFERING OF BONUS AND CERTIFICATES.-G. S. Doolittle, City
Treasurer, reports that the bids submitted at the offering on March 3 of
$53.096.07 bank tax refund bonds and $7.257.09 paving certificates-V.136.
p. 1413-were rejected. Bidder was asked to name the rate of interest
within a limit of 6%.
JAY,KEENE, CHESTERFIELD, WILMINGTON- BLACK BROOK
AND FRANKLIN (Towns of) Central School District No. 1 (P. 0.
Ausable Forks), N. Y.
-SEEK VALIDATION OF BOND ISSUE.
-A
bill was introduced concurrently in the Assembly and State Senate on
March 1 to legalize the acts and proceedings of the Board of Education in
relation to the authorization and sale of the $200,000 school bonds which
were awarded on Dec. 6 1932 to George B. Gibbons & Co., Inc., of New
York. as 6s, at a price of par-V. 135, p. 4067.
KALAMAZOO, Kalamazoo County, Mich.
-NOTES AUTHORIZED.
-The City Commission has authorized the issuance of $200.000 5% tax
anticipation notes for the purpose of financing current operating expenses,
including welfare relief. The notes will mature on Aug. 15 1933. the final
date for city tax collections.
KENT, King County, Wash.
-BOND ELECTION.
-It is reported
that an election will be held on March 14 in order to vote on the proposed
Issuance of $15,000 general obligation sewer bonds.
KING COUNTY (P. 0. Seattle), Wash.-RECONSTRUCT/ON
FINANCE CORPORATION REFUSES TO PURCHASE BONDS.
-The
Seattle "Post-Intelligencer" of Marco 4 reports that the R. F. C. has
refused a proposal that it buy the county's $1,000.000 bond issue to refund
that much of the $3,000.000 worth of outstanding county warrants
-V.
V. 136. p. 524. It was stated that the R. F. C. policies do not as yet
permit loans to take up existing county debts of that nature.
KNOXVILLE, Knox County, Tenn.
-BOND EXCHANGE ACT
PASSED.
-The State Legislature passed an act authorizing this city to
issue new bonds in exchange for all bonds coming due within the next
eight or nine days, assuming the holders consent, according to Knoxville
advices on Mar. 9. It is expected the Governor will sign the bill. (The
text of this refunding plan was given in V. 136. p. 690.)
LA CROSSE COUNTY (P. 0. La Crosse), Wis.-BOND SALEPOSTPONED.
-We are informed that the sale of the $500,000 issue of 5%
semi-ann. corporate purpose, series C bonds, scheduled for March 6V. 136. p. 1596-was deferred to some later date on account of the bank
situation. Dated Jan. 1 1933. Due $50,000 from Jan. 1 1934 to 1943
incl.
LAKE COUNTY (P. 0. Painesville), Ohio.
-BONDS NOT SOLD.
The issue of 691.500 6% refunding bonds offered on March 6-V. 136.
p. 1236-was not sold, as no bids were recelvei. Dated April 1 1933.
Due semi -annually on April and Oct. 1 from 1934 to 1943 incl.
LAKE-OF-THE-WOODS COUNTY (P.O. Baudette), Minn.
-BOND
OFFERING.
-Sealed bids will be received until 10 a.m. on March 15 by
M. D. Weeks County Auditor, for the purchase of a $22.000 issue of 4%
refunding bonds. Dated April 11933. Denom. $1.000. Due on April 1
as follows: $1.909, 1936 to 1949 and $2,000, 1950 to 1953, all incl. Prin.
and lilt. (A. & 0.) payable at such place as designated by the purchaser.
The blank bonds and the approving opinion of Junell, Driscoll, Fletcher,
Dorsey & Barker of Minneapolis will be furnished the purchaser.
LANSING, Ingham County, Mich.
-REFUNDING BONDS
ORIZED.
-The State Public Debt Commission has granten the city AUTHpermission to issue :5165,000 refunding bonds, to bear interest at not more than
% and mature serially from 1936 to 1947. incl. Purpose of the issue
is to reduce the amount it would be necessary to be raise in the next bunget
for bond retirements. In requesting authority for the refunding issue, the
city stated that it would reduce the bond principal to be met during the
fiscal year beginning May 1 1933 from $407.000 to $242,000.-V. 136.
p. 1058.
LAURAMIE TOWNSHIP, Tippecanoe County, Ind.
AUTHORIZED.
-The State Senate has passed a bill empowering-BONDS
the township to issue $15,000 bonds for school building construction purposes.
.;.OGAN COUNTY (P. 0. Bellefontaine), °Mo.-BOND OFFERING.
-R. M. Painter, Clerk of the Board of County Commissioners, will receive
sealed bids until 10 a.m. on March 25 for the purchase of $221,755.89 6%
special assessment improvement bonds issued for the purpose of paying the
property owners' portion of the cost of installing a sanitary sewer system
and sewage disposal plant in Indian Lake Sanitary Sewer District. The
bonds will be dated .lan. 1 1933 and mature as follows: $5.755.89 April
and $6,000 Oct. 11934; $5.000 April and Oct. 1 from 1935 to 1952. Ind ,
and $6.000 April and Oct. 11953. One bond for $755.89, others for $1,006.
Prin. and int. (April and Oct.) are payable at the Couhty Treasurer's office.
Bids for the bonds to bear interest at a rate other than 6%,expressed in a
multiple of X of 1%, will also be considered. A certified check for 1%
of the bonds bid for, payable to the order of the County Treasurer, must
accompany each proposal. All proceedings incident to the proper authorization of this issue of bonds has been taken under the direction of Squire,
Sanders & Dempsey of Cleveland, whose opinion as to the legality of the
bonds may be procured by the purchaser at his expense, and only bids so
conditioned or wholly unconditional bids will be considered.
-REPORTED OVER LEGAL
LONG BEACH, Nassau County, N. Y.
-State examiners have reported to State Comptroller
DEBT LIMIT.
Morris_S. Tremaine that the city is indebted for $772.962 in excess of the
1751
statutory limit as fixed by law and as a result is experiencing difficulty in
selling its bonds, according to the "Herald Tribune" of March 4, which
further commented as follows:
"According to the statement of the examiners, the record of tax collections showed 'a very unsatisfactory' condition at the time of the investigation and there existed unpaid city taxes amounting to $698,000 and unpaid
water rents exceeding $137.000.
"Added to these delinquencies, a very large amount of deferred assessments receivable accounts were past due," the report said. -At this time
the city owed $775,000 of tax anticipation notes in addition to $107.699
of capital notes. It also owed the County Treasurer $397,777 and current
claims amounted to $114,190."
"The total indebtedness of the city as of Aug. 31 1932 was reported as
follows:
$5,876,575
Bonded debt
802.256
Temporary loans
175.752
Claims unpaid
"Long Beach is in Nassau County,on the south side of Long Island. The
Federal census of 1930 showed a population of 5,817."
-BOND OFFERING.
-H. G.
LOVELAND, Clermont County, Ohio.
Bryan, Village Clerk, will receive sealed bids until 2 p. m. on March 25 for
the purchase of $'400 6-/ street improvement bonds. Dated April 1 1933.
0
Deuom. $40. Due $40 annually on Oct. 1 from 1934 to 1938 incl. Principal and interest (annually on Oct. 1) are payable at the Loveland National Bank. Bids for the bonds to bear interest at a rate other than 6%.
expressed in a multiple of X of 1%, will also be considered. A certified
check for $50 must accompany each proposal.
LOWELL, Middlesex County Mass.-$900,000 LOAN BALANCE
RETIRED.
-The city on March 2 forwarded to its fiscal agent in Boston
'
$900,000 to pay off the balance of a loan of $1,400,000 floated in March
1927. The obligatim was renewed in 1928 and in March 1929 payment
was made of $400.000 and a year's renewal arranged for the balance of
$1,000,000. Subsequent extensions were granted and last year a further
sum of $100,000 was liquidated, leaving the balance of $900,000 which
has now been paid
Mayor Slowey, in announcing the payment, stated
that the city has only $1,431.800 outstanding in temporary loans and
urged property owners to pay their 1932 taxes in order that the remaining
indebtedness may be wiped out.
McLEAN COUNTY SCHOOL DISTRICT NO.8 (P. 0. Underwood),
N. Dak.-CERTIFICATE DETAILS.
-The $4,000 certificates of indebtedness that were purchased oy the Bank of North Dakota of Bis-were sold at par. Dated Dec. 15 1932.
marck at 6%-V. 136, p. 877
Due on Dec. 15 1933.
MADISON COUNTY (P.O. Anderson),Ind.-BONDSRE-OFFERED.
-The issue of $72,400 6% poor relief bonds previously scheduled for award
on March 4-V. 136, p. 1414-is now being offered for sale at 10 a. m.
on March 22. Sealed bids should be addressed to Albert A. Huff. Cmnty
Auditor. Bonds bear date of March 22 1933 and will mature as follows:
$4,020 on May and Nov. 15 from 1934 to 1941 incl.; $4,040 May and Nov.
15 1942. Proceeds of the sale will be used for the payment of township
poor relief claims as provided for by Chapter 75. pages 188 and 189 of the
Acts of the General Assembly of the State of Indiana. for the year 1931,
as amended by the provisions of Chapter 46, pages 186 and 187 of the
Actsof the General Assembly of the State of Indiana, by special session of
the year 1932. To enable the Immediate delivery of bonds on day Of sale.
the transcript will have attached thereto a written opinion of the examining
attorneys, cost of same to be paid by the County.
-LO 4N ISSUE WITHDRAWN.
MALDEN, Middlesex County, Mass.
-The City Treasurer states that the $200.000 revenue anticipation loan,
due Sept. 6 1933, which was scheduled for sale on March 3, has been
withdrawn from the market.
MAMARONECK (P. 0. Mamaroneck), Westchester County, N. Y.
-NOTE SALE.
-The Bankers Trust Co. of New York has purchased an
issue of $50,000 tax anticipation notes, in denoms. of $10,000 and due on
June 1 1933.
MARSHALL COUNTY (P.O. Marysville), Kan.
-LIST OF BIDDERS.
-The following is an official list of the other bids received for the $19.344.55
4%% coupon semi-ann. Road District No. 15 bonds that were awarded
to the Central Trust Co. of Topeka at 100.46, a basis of about 4.16%V. 136, p. 1596:
•
BidderPrice Bid,
Baum, Bernheimer & Co
100.387
Columbian Securities Co
100.324
Commercial Trust Co
100.085
City Bank & Trust Co
99.50
Wayne J. Estes & Co
*101.475
* This bid was rejected because the company would not sign a contract
to accept the transcript as approved by Bowersock, Fizzell & Rhodes
of Kansas City.
MEDFORD, Middlesex County, Mass.
-TEMPORARY LOAN.
The National Shawmut Bank and the Merchants National Bank, both of
Boston, jointly purchased on Feb. 23 a 6200,000 revenue anticipation note
Issue at 5% discount basis. Due on Nov.2 1933.
-BOND OFFERING.
MEDFORD, Jackson County, Ore.
-Sealed
bids will be received until 7:30 p. m. on March 21 by M. L. Alford. City
Recorder, for the purchase of a $49,463.85 issue of 5%% Consolidated
Improvement Fund No. 2 bonds. Denom. $500, one for $463.85. Dated
May 1 1932. Due on Nov. 1 as follows: $4,463.85 in 1933 and $5,000.
1934 to 1942. Prin. and int.(M. & N.) payable at the office of the City
Treasurer. All bids shall be for not less than 95% of the par value of
the entire amount of the accrued interest. A certified check for 2% of
the par value of the bonds offered must accompany the bid.
MICHIGAN, State of (P. 0. Lansing).
-RECONSTRUCTION
FINANCE CORPORATION LOAN GRANTED.
-The following loan
grant report was made public by the R. F. 0.on March 3:
"Upon application of the Governor of Michigan, the Corporation to-day
made available $1,117.652 to meet current emergency relief needs in 64
political subdivisions of that State during the month of March. These
funds are made available under Title I, Section 1, subsection (c), of the
Emergency Relief and Construction Act of 1932.
"The Legislature of the State of Michigan is now in session and the early
enactment of relief legislation is expected, which would enable the State to
take steps toward actual participation in the way of making funds available
for relief purposes, or would enable the political subdivisions to take further
steps to meet their own relief needs.
"The R. F. C. heretofore has made available $13,809,331 to meet current
emergency relief needs in various political subdivLeions of the State of
Michigan."
MIDDLESBORO, Bell County, Ky.-BOND ISSUANCE CONTEMPLATED.
-At a meeting held recently the Mayor and the City Commissioners are reportel to have ordered immediate action in advertising
for bids on the $300,000 municipal power plant bonds authorized on July
19 1932-V. 135, P. 847. It Is said that the Reconstruction Finance
Corporation had denied the request of tne city for a loan of $300,000 on
this project.
MINNEAPOLIS, Hennepin County, Minn.
-CERTIFICATE SALE.
-The $1,000,000 issue of tax anticipation certificates of indebtedness offered for sale on March 3-V. 136, p. 1414
-was jointly purchased by the
First National Bank and the Northwestern National Bank, both of Minneapolis, as 4s at par. Dated March 1 1933. Due on July 1 1933. No
Other bids were received.
BOND AND CERTIFICATE OFFERING.
-Sealed and auction bids will
be received until 11 a.m. on March 15 by Geo. M. Link. Secretary of the
Board of Estimate and Taxation, for the purchase of the following bonds
and certificates, aggregating $1,150.000:
$1,000,000 tax anticipation certificates. Dated March 15 1933. Due on
Dec. 15 1933. Interest payable at maturity.
150,000 coupon permanent improvement bonds. Dated April 1 1933.
Due $7.000 on April 1 of each even numbered year and $8,000
on April 1 of each odd numbered year from 1934 to 1953, incl.
Interest rate on all obligations is not to exceed 6%,to be stated in a multiple of % of 1%, payable semi-annually on the bonds. Sealed bids will
be received until 11 a.m, on the date of sale and open bids will be asked for
after that hour. Bids offering an amount less than par cannot be accepted.
Denom. $1,000 and in the case of the certificates they may be issued in
multiples thereof. Prin. and int, payable at the fiscal agency of the city
In New York, or at the office of the City Treasurer. Legal approval by
Thomson, Wood & Hoffman of New York. A certified check for 2% of the
Obligations bid for, payable to the City Treasurer, is required.
1752
Financial Chronicle
March 11 1933
MISSISSIPPI, State of (P. 0. Jackson).
-BONDS DELIVERED.
"The Corporation, upon application of the Governor of North Dakota,
The Jackson "News" of Feb. 26 carried the following report on the nearly
to-day made available $231,079 to meet current emergency relief needs in
completed delivery of the $5.000.000 issue of bank guaranty deposit bonds
23 counties of that State for the period March 1 to April 30 1933.
(V. 134, p. 707):
"These funds are made available under Title I, Section 1, subsection (c)
"Of Mississippi's $5,000,000 bond issue to reimburse holders of old guarof the Emergency Relief and Construction Act of 1932.
anty of deposit certificates. $4,875.000 have been delivered, J. S. Love,
"The R. F. C. heretofore has made available $227,789 to meet current
Superintendent of State Banks, reported last night.
emergency relief needs in various political subdivisions of the Stategof
"The 5)4% bonds, making up an issue unique in Mississippi financing
North Dakota."
and handled under unusual 'swapping' arrangement necessitated by bond
NORTHVALE, Bergen County, N. J.
market conditions prevailing in 1931,recently have come into heavy demand.
-BOND SALE.
-The issue of
$16,000 6% coupon or registered improvement bonds offered on March 1
Superintendent Love said. He credited this show of interest to the State
-V. 136, p. 1238
-was purchased privately by the Closter National Bank
government's steady march toward financial stability.
& Trust Co. of Closter after no public offers had been received. The bonds
"The bonds, authorized by the extraordinary legislative session of 1931,
bear date of March 15 1933 and mature on July 15 as follows: $3,000 from
were destined for some 30.000 depositors holding guaranty certificates
1933 to 1936, inclusive., and $4,000 in 1937.
Issued in 32 bank closures prior to March 11 1930, when the guaranty law
was repealed.
NORWICH, Chenango County, N. Y.
-BOND
.-The $13,100
"Unable to market the issue outright, the State Bond Commission encoupon or registered bonds offered at public auction SALE
on March 7-V. 136.
tered into an agreement with the Mortgage Bond & Trust Co. of Jackson,
p. 1597
-were awarded as 5s, at a price of par, to the National Bank &
which purchased the bonds in blocks and carried out their exchange for
Trust Co. and the Chenango County National Bank &
certificates. Under an order of the Banking Department, the delivered
of Norwich, jointly. Only one bid was received at theTrust Co., both
sale, which inbonds were withheld from the market until June last year, so as not to included:
terfere with marketing of other State issues.
$6,600 series XX bridge bonds. Due April 1 as follows: $600 in
1934;
"For a long period the bonds, with maturity dates ranging from five to
5500 from 1935 to 1937 incl.: $1,000. 1938; $1,500 in 1939. and
20 years, were clouded by litigation growing out of changes in the State's
52,000 in 1940.
banking laws that discarded the guaranty system but withstood court
6.500 series WW paving bonds. Due April 1 as follows: $500 from 1934
attacks.
to 1936 incl.; $1,000 in 1937 and 1938, and $3,000 in 1939.
"'Recent sales indicate the present market value of these Banking
Each issue is dated April 1 1933.
Department bonds is within two points of the State's regular 5%% issues.'
OCEAN BEACH,Suffolk County, N. Y.
Supt. Love said. 'The regular issues are selling around 90 cents on a dollar
-BOND SALE POSTPONED'
-Harry P. Keene, Village Clerk, announced on March 7 that due to
while the last sale of Banking Department bonds was made at 88.'
prevailing banking conditions the Board of Trustees decided to postpone
"The bonds have been of incalculable financial benefit Mr. Love said.
the sale of $130.000 coupon or registered water bonds which
He estimated two and a half million are held by banks, which formerly held
been
scheduled for March 14-V. 136. p. 1597. The bonds are to had dated
certificates. While the certificates have no negotiable value, the bonds
March 1 1933, with interest at not more than 6% and mature on be
serve many uses as collateral, he said.
March 1
as follows: $3.000 from 1934 to 1938 incl.; $4,000 from 1939 to 1948 incl..
"The undelivered portion of the bonds still is in the State Treasury
and $5000 from 1949 to 1963 incl.
pending exchange. Some guaranty certificates are in litigation and others
are lost, the Superintendent explained."
OHIO, State of(P.O. Columbus).
-RECONSTRUCTION FINANCE
CORPORATION LOAN GRANTED.
-On March 3 the Corporation made
MISSOURI, State of (P. 0. Jefferson City).
-RECONSTRUCTION
the following relief loan grant announcement:
FINANCE CORPORATION LOAN GRANT.
-On March 9 the following
"The R. F. C., upon application of the Governor of Ohio, to-day made
announcement of a relief loan grant was issued by the R. F. C.:
available $12,000 to meet current emergency relief needs in the City of
"The Corporation, upon application of the Governor of Missouri, to-day
Sidney. Ohio, for the months of March and April, 1933.
made available $29,740 to meet current emergency relief needs in seven
"With legislative relief measures supported by the Governor in process
political subdivisions of that State for the period March 1 to April 30 1933.
of enactment by the State Legislature at this time, it is understood that tho
"These funds are made available under Title I, Section 1, subsection (c)
State of Ohio will put forth every possible effort to further meet the relief
of the Emergency Relief and Construction Act of 1932.
needs or to enable the various political subdivisions to meet such needs in
"The R. F. C. heretofore has made available $3,795,695 to meet current
so far as it is possible beyond the period for which these funds are made
emergency relief needs in various political subdivisions of the State of
available.
Missouri."
"The Corporation heretofore has made available 512.525,337 to meet
current emergency relief needs in various political subdivisions of the
MONTANA, State of (P. 0. Helena).
-RECONSTRUCTION FIState of Ohio.'
NANCE CORPORATION LOAN GRANTED.
-The following relief loan
report was issued by the R. F. C. on March 3:
OREGON, State of (P. 0. Salem).
-BOND OFFERING.
-It is
"The Corporation, upon application of the Governor of Montana, to-day
announced by H. B. Glaisyer, Secretary of the State Highway Commade available $20,900 to meet current emergency relief needs in three
mission, that sealed bids will be received by the Commission at the Multcounties of that State during the months of March and April 1933. These
nomah Hotel In Portland, until 2 p.m. on March 15, for the purchase of
funds are made available under Title I, Section 1, subsection (c) of the
$1,500,000 State highway gold bonds. Interest rate is not to exceed 6%,
Emergency Relief and Construction Act of 1932.
payable A. & 0. Di enom. $1,000. Dated April 1 1933. Due $300,000"
"It is reported that the Legislative Assembly now in session has under
from April 1 1934 to 1938, incl. Prin. and int. payable in gold at the
consideration measures concerning the administration of Federal Relief
office of the State Treasurer, or at the office of the fiscal agent of the
funds in the State.
State, in New York City. The approving opinion of Storey, Thornclike,
"The R. F. C. heretofore has made available $2.010,135 to meet current
Palmer & Dodge of Boston, will be furnished. All bonds will be ready
emergency relief needs in various political subdivisions of the State of
for delivery on or about April 1. Said bonds, if sold, shall be sold for
Montana."
cash at the bid price plus accrued interest from April 1 1933, to date of
ADDITIONAL LOAN GRANTED.
delivery at the rate of fixed by the competitive bidding thereon, and the
-On March 9 another loan was
announced as follows:
proceeds thereof shall be paid at the Chase National Bank in New York
"Upon application of the Governor of Montana, the R. F. C. to-day
City. No bid will be considered for an interest rate greater than 6%
made available $4,400 to meet current emergency relief needs in Teton
per annum and bidders may submit bids for all or any part of the total
County for the period March 1 to April 30 1933.
amount of $1,500,000 par value of the bonds to be sold. A certified check
"These funds are made available under Title I, Section 1. subsection (c)
on a national bank for 5% of the par value of the bonds, must accompany
of the Emergency Relief and Construction Act of 1932.
the bid. (Tnese are the bonds that were scheduled for sale on March 1.
"The Corporation heretofore has made available $2,031,035 to meet
tne sale of which was postponed.
-V. 136, P. 1597.).
current emergency_ relief needs In various political subdivisions of the
PASADENA, Los Angeles County, Calif.
-BONDS PURCHASED.
State of Montana."
We are informed by the City Clerk that the Reconstruction Finance CorMONTANA, State of (P. 0. Helena)
poration was awarded as 5,l4s at par the $992,000 issue of San Gabriel
-BOND RE
-OFFERING NOT
CONTEMPLATED.
Water Project, series B bonds, offered on Feb. 28, the award of which was
-We are informed by our Western correspondent
that.W. L. Fitzsimmons, Clerk of the Board of Examiners, has stated the
deferred-V. 136, ro. 1598. Dated Aug. 15 1932. Due $32,000 from
Legislature emphatically refused to make any increase in the rate of inAug. 15 1942 to 1972 inclusive.
terest on the $4,500,000 coupon funding bonds offered for sale without
PHILADELPHIA, Pa.
-PROSPECTIVE BOND FINANCING.
SUCC0138 on Feb. 23-V. 136, p. 1414, hence no re-offering is expected soon.
-The
city has under consideration a proposal providing for the sale of from
He said that it is quite likely the State will dispose of portions of the bonds
812,000.000 to $15.000.000 bonds for the purpose of retiring outstanding
in exchange for outstanding warrants, especially in the earlier maturities
warrants and mandamus claims now bearing interest at 6%. The sinking
of the 4% bonds.
fund has 52.700.000, which could be applied to the purchase of the bonds.
MONTGOMERY COUNTY (P. 0. Rockville), Md.-TO PAY BOND
PHILADELPHIA, Pa.
-REVENUESSHOW DECLINE OF 55.687.858.
INTEREST.
-Payment of about $26,000 in bond interest which was due
-The report of Frank J. Willard, Assistant Receiver of Taxes, of revenues
on Mar. 1 will be made by the county as soon as banking accommodations
collected by the city from all sources during the months of January and
become available, it was reported on Mar. 10.
February, shows that receipts during that period of $30,534,405.22 repreMOOSE LAKE, Carlton County, Minn.
sent a reduction of 55.687.858.50 as compared with collections in the cor-BOND OFFERING.
-Sealed
bids will be received until 8 p. m. on March 18 by F. A. Schweiger, Village
responding months of 1932. Mr. Willard compared the two months'
Clerk, for the purchase of a $28,000 issue of municipal light plant bonds.
receipts as follows:
Interest rate is not to exceed 6%. payable J. & J. Denoms. $1,000 and
Nature of Tax1933.
1932.
Decrease.
$500. Dated Jan. 1 1932. Due on Jan. 1 as follows: $1,000. 1935 to
City
817.388.651 $19,761,404 $2,372,752
1937: 52.000, 1938 to 1942. and 52,500. 1943 to 1948, all inclusive. A
School
9,081,521
1,405,730
10,487,251
certified check for $500 must accompany the bid. (These bonds wore
Delinquent city
2,092.171
187,257
2,279,428
offered for sale without success on July 22.1932-V. 136, p. 194.)
Delinquent school
1,004,081
111,079
1,115,160
Water
461,403
1,533,385
1,994,789
MORENCI, Lenawee County, Mich.
-BOND ELECTION.
-At the
spring election on March 13 the taxpayers will vote on a proposal calling
PIERCE COUNTY (P. 0. Tacoma), Wash.
-The
-BOND SALE.
for the construction of a municipal electric plant and also on an amendment
$500.000 issue of coupon funding bonds offered for sale on Feb. 20-V.136.
to the City Charter to permit the construction or purchase of public utilities
p. 1060
-was purChased by John Nuveen & Co. of Chicago as 5345 at par.
and the issuance of bonds for that purpose.
Due in from 2 to 10 years from date of issuance.
MORGAN COUNTY (P. 0. Jacksonville), 111.
PLEASANTVILLE, Atlantic County, N. J.
-BOND ISSUANCE
-PURCHASE OFBONDS
AWAITS COURT DECISION.
REQ UESTED
-Writing in connection with the issue of
.-The city has requested the Reconstruction Finance Corporation to purchase the issue of $27,000 sewer extension bonds authorized
550,0005% relief bonds authorized during January by the Board of County
Commissioners
by the City Council on Sept. 19 1932.
--V. 136, p. 194-F. W. Brockhouse reports that issuance
of the bonds has been deferred until such time as the validity of the law can
PLYMOUTH COUNTY (P. 0. Le Mars) Iowa,
be established, as the obligations come under the authority of the Meents
-BOND SALE.
-A
320.000 issue of 5% funding bonds is stated to have been purchased by
bill diverting gas tax funds. Mr. 13rockhouse adds that the issue has
Glaspell, Vieth & Duncan of Davenport.
already been contracted for by Glaspell, Vieth & Duncan of Davenport
PORTSMOUTH, Scioto County, Ohio.
MORIAH (P. 0. Port Henry) Essex County, N. Y.
AUTHORIZED.
-BOND OFFERThe city council has adopted an ordinance -BONDS for
providing
ING POSTPONED.
of
-Edward L. Dudley, Town Clerk, reports that the
$21,500 6% property owner's portion refunding bonds, to be the [nuance 1
offering of $67,000 coupon or registered bonds, comprising two issues,
dated March
1933 and mature as follows: $1,000 April and Oct. 1 in
originally scheduled for March 7-V. 136, ro. 1414
-has been postponed
$1,500 April and $1,000 Oct. 1 from 1936 to 1942 incl. 1934 and 1935;
to a later date because of the present unsettled business conditions.
Principal and
interest (April and October) are payable at the office of the Department of
NEW HAVEN, New Haven County, Conn.
Finance.
-S2.750.000 NOTES
PAID-ISSUE OF $2.250.000 BONDS AUTHORIZED.
-The city effected
POTTAWATTAMIE COUNTY (P. 0. Council Bluffs) Iowa.
payment on March 6 of $2.750,000 notes held by the Cnase National Bank,
-BOND
SALE.
-We are informed by the County Auditor that
of New York, through the medium of borrowing $500,000 in amounts of
$263,000 issue
of 5% semi-ann. relief bonds authorized by the Board the Supervisors on
$250.000 each from the Bank of Manhattan Co. and the Guaranty Trust
of
Sept. 29-V. 135. p. 2691-has been purchased by the Council Bluffs
Co., both of New York, and tne withdrawal of the balance necessary from
Savings Bank,for a premium of $2,500, equal to 100.95.
Its general fund account. The Chase Bank, it is said, has agreed to make
further loans on the basis of additional note purchases. Subsequent note
PROCTOR, St. Louis County, Minn.
-BOND ELECTION POSTmaturities include $100.000 due on March 13 to Leavitt, Edwardes & Co.,
PONED.
-It is stated that the election previously scheduled for
of New York. and 51,000.000 due to local banks on March 14.
on the proposed issuance of $11,000 in 4j refunding bonds March 7,
%
-V. 136.
p. 1415
-has been deferred until March 14.
BONDS AUTHORIZED.
-Governor Cross on March 3 signed two
measures pertaining to the finances of the city, the one authorizing the
READING, Berke County, Pa.
-BOND SALE.
-The $300,000 coupon
Issuance of 52.250.000 5% serial bonds to fund outstanding floating
or registered bonds offered on Mar. 8-V. 136. p. 1060-were awarded as
indebtedness, while the other fixes the method to be pursued by the city
434s to Leach Bros., Inc., of Philadelphia, at par pins a premium of $300.
In meeting future current expenses. This latter measure, according to the
equal to 100.10, a basis of about 4.48%. Dated Mar. 1 1933. Due
Hartford "Courant" of March 4, requires that deficits in city expenses
$30,000 on Mar. 1 from 1934 to 1943 incl.
hereafter shall be met by increased taxes in the next year and that taxpayers must be notified as to what part of the tax is chargeable to the
RICH VALLEY SCHOOL DISTRICT (P.O. Marion) Smyth County,
previous year's deficit.
Va.-BOND SALE CANCELED
-BONDS RESOLD.
-We are now
Informed that the sale of the $15,000 refunding bonds to the State Board of
NORTH CANTON, Stark County, Ohio.
-BONDS AUTHORIZED.
Education
-V. 135. p. 4419
-was witndrawn and the bonds were readver-The village council adopted an ordinance during tne month of February
Used and sold to the Bank of Marion, of Marion, as 534s. Dated Jan. 1
providing for an issue of $2,600 5% fire department apparatus purchase
1933. Due $1.000 from Jan. 1 1934 to 1948. Inclusive,
bonds. dated March 1 1933 and due on Sept. 1 as follows: $600 in 1934,
ROCHESTER,Olmsted County., Minn.
and $500 from 1935 to 1938, inclusive.
-CERTIFICATE OFFERING.
-Sealed bids will be received until 7:30 p. m.on March 15 by A. F. Wright.
NORTH DAKOTA,State of (P.O. Bismarck).
-RECONSTRUCTION
City Clerk, for the purchase of a $3,000 issue of 41(% certificates of inFINANCE CORPORATION LOAN GRANT.
-On March 9 the R. F. C.
debtedness. Denom. $1,000. Dated March 1 1933. Due on March 1
made the following report on a relief loan grant:
1934. Prin. and int.(M.& S.) payable at the office of the City Treasurer.
Volume 136
Financial Chronicle
1753
A certified check for 2%, payable to he City Treasurer, must accompany
TEXAS,State of(P.O. Austin).-BONDPAYMENTBILLPASSED.the bid.
According to recent news dispatches from Austin the Legislature has passed
a bill which will require that payment of outstanding county and district
ROME, Oneida County, N. Y.
-BOND REFUNDING PLANNED.
- road bonds, aggregating approximately $100.000,000,
which have been
Bills have been introduced in the General Assembly empowering the city
assumed by the State, will be made at the State Treasury instead of New
to issue $114,666.66 refunding bonds to provide funds for the payment of
York or other cities designated in the bonds themselves.
principal maturing in 1933 and 1934.
bond
TIFFIN, Seneca County, Ohio.
-BOND PAYMENT DEFERRED.
RUSH COUNTY (P.O. Rushville), Ind.
-BOND OFFERING.-Edgar
The Board of Education failed to make payment of $6,000 bonds which
Stiers, County Auditor, will receive sealed bids until 10 a.m. on March 14
became due on March 2, apparetnly as a result of restrictions obtaining
for the purchase of 311,25540 not to exceed 6% interest poor relief bonds.
on bank withdrawals.
Dated March 14 1933. Denom. $562.77. Due 81,125.54 on May and
Nov. 15 from 1934 to 1938. incl. Prin, and int. are payable at the County
TROY, Rensselaer County N. Y.
-BONDS AUTHORIZED.
-The
Treasurer's office. A certified check for 3% of the bonds bid for, payable
common council recently authorized the issuance of *1,233,700 bonds as
to the order of the Board of County Commissioners, must accompany each
follows:
proposal. Bids must be accompanied by an affidavit of non-collusion as
$650,000 home and work relief bonds.
provided by law and the opinion as to the validity of the bonds is to be ' 500.000 bonds to provide for the retirement of certificates of indebtedness
furnished by the successful bidder.
72,700 tax title bonds.
11,000 bonds to pay the city's share of the cost of improving 17th)
ST. FRANCISVILLE, West Feliciano Parish, La.
-BOND ELECOutstanding Debt March 1 1933.
-It is reported by J. R. Matthews, Mayor, that an election will be
TION.
General funded debt
$4,991.504.00
held on March 21 In order to vote on the proposed issuance of
Water works bonded debt
940,250.33
system bonds. Interest rate is not to exceed 6%. Due in 20 $50,000 gas
years.
Unfunded debt:
ST. LOUIS COUNTY (P. 0. Duluth), Minn.
Temporary improvement notes
1,045.000.00
-GOVERNOR SIGNS
BOND BILL.
-Governor Olsen is reported to have signed the bill permitting
Emergency relief certificates of indebtedness
350.000.00
the county to issue and sell $1,500,000 in poor department bonds
Anticipation of taxes and revenue certificates ofindebtedness 550.000.00
-V. 136.
p. 1415. (See item below.)
Assessed Valuations.
Real estate
ST. LOUIS COUNTY (P. 0. Duluth) Minn.
$71,794,085.00
-BOND OFFERING.
Special franchises
Sealed bids will be received until 10 a. m. on April 3, by W. H. Bergen.
3.584.309.00
Personal
County Auditor,for the purchase of an issue of$1,000,000 434% poor relief
28,000.00
bonds. Denom. $1,000. Dated April 11933. Due $200.000 from April 1
Total subject to taxation
1935 to 1939 incl. Princ. and int. (A. & 0.) payable in gold at the Irving
$75.4u6.394.00
Tax rate: City, $25.99; schools, $8.80; county. $11.59; total, $46.38.
Trust Co. of New York City, or at any other place elected by the purchaser.
Said bonds to be issued under authority of Chapter 43, Laws of Minnesota
TYRONE, Blair County, Pa.
-BOND SALE.
-The issue of $135.000
for 1933
-(see Item above). The sale of said bonds is to be at a sum of not
coupon bonds offered at not to exceed 4U% interest on Feb. 23 1932, at
less than par value thereof with accrued interest to the date of delivery.
which time no bids were received-V. 134. p. 1619
-has since been sold
A certified check for 2% of the par value of the bonds,payable to the County
as 4s to local investors. Dated Jan. 1 1932 and due serially on Jan 1
Treasurer, must accompany the bid.
from 1933 to 1961, inclusive.
Said bonds to be paid for within 10 days after notice that the same
are ready for delivery, and the said delivery and payment to be made at the
VALDESE, Burke County, N. C.
-MATURITY.
-The $78.000 issue
County Treasurer's office,in the County Court House,in the city of Duluth,
of 69' sewer system bonds that was contracted for at par by the ReconstrucMinn. If payment for delivery of said bonds is desired at any other place,
tion Finance Corporation on Nov. 30-V. 135. p. 3892
-has been sold to
it shall be at the expense of the buyer. Blank bond forms will be furnished
the Corporation. Due as follows: $500 1936 to 1939, $1,000 1940 to
by the County of St. Louis, at its own expense, and no allowance will be
1952. 34,000 1954, $5,000 1955 to 1965, and $4,000 in 1966.
made for the same, if furnished by the successful bidder. The legality of
VERMILLION COUNTY (P. 0. Newport), Ind.
this issue of bonds will be passed upon by the firm of Thomson, Wood &
-BOND OFFERING.
Hoffman of New York City. A copy of their approving opinion will be
-Sealed bids addressed to the County Auditor will be received until 10
a. m. on March 25 for the purchase of $38,000 poor relief bonds.
furnished the successful bidder, at the expense of St. Louis County.
VIRGINIA, State of (P. 0. Richmond).
SALEM, Essex County, Mass.
-ISSUE TVITHDRAWN FROM
-RECONSTRUCTION
MARKET.
FINANCE CORPORATION LOAN GRANTED.
-Charles G. F. Coker, City Treasurer, states that the issue of
-The following relief I an
was announced by the R. F. 0. on March 3:
$100,000 revenue anticipation notes, previously scheduled for sale on
March 9-V. 136, p. 1598
"Upon application of the Governor of Virginia, the Corporation to-day
-has been withdrawn from the market because
made available $548,829 to meet current emergency relief needs in 50
of the general bank holiday.
political subsidivions of that State during the months of March and
SCOTIA,Schenectady Lounty, N. Y.
-ASSEMBLY APPROVED
April 1933.
-The bill empowering the Village to issue refunding bonds
BOND ISSUE.
"These funds are made available under Title I, Section 1, subsection (c)
up to $175,000 for the purpose of extending principal maturities coming
of the Emergency Relief and Construction Act of 1932.
due in the fiscal year from March 1 1933 has been passed by the Assembly
"It is pointed out that the State of Virginia is carrying on a subsistence
and has now been forwarded to the State Senate for action.
garden program in co-operation with the local relief committees.
"The R. F. C. heretofore has made available $2,804.141 to meet current
SEATTLE, King County, Wash.
-BONDS CALLED.
-It is reported
emergency relief needs in various political subdivisions of the State of
that II. L. Collier, City Treasurer, called for payment from Feb. 24 to
Virginia.
March 7 various local impt. district bonds.
UNION CITY, Hudson County, N. J.
-STATEMENT OF INDEBTSHINNSTON, Harrison County, W. Va.-BOND INJUNCTION
EDNESS AND TAX COLLECTION REPORT.
-We have received the
DENIED.
-In the Circuit Court on Feb. 21 an injunction was denied by
following data with respect to the nature of indebtedness outstanding and
Judge Stathers to prohibit the city from negotiating for the sale of $40,000
the volume of tax collections:
water system bonds that were voted on Jan. 31-V. 136. p. 1598. It is
said that the case will be brought to the State Supreme Court as soon as
Bonded Debt (Dec. 31 1932).
possible as a test case of geat interest. It was indicated by Judge
Permanent Bonds Issued and Outstanding
in dismissing the petition that the recently adopted tax limitationStatham
Issued since consolidation, debt borne by the
amendment to the State Constitution does not apply to the laying of special
entire city.
levies for the payment of outstanding or new bond issues by political
School bonds
$1,508,000.00
divisions of the State.
Improvement to streets, sewers, buildings
and police and fire signal system
1,171,000.00
SOLON, Cuyahoga County, Ohio.
-BONDS NOT SOLD.
-The issue
Playground
476.000.00
Of $11,000 6% refunding special assessment bonds
offered on Feb. 20
$3.155,000.00
-V. 136. p. 697
-was not sold, as no bids were received. Dated Dec. 15
West Hoboken section:
1932. Due serially on Dec. 1 from 1934 to 1942 inclusive.
Improvements to streets, sewers, buildings,
SOUTH BEND, Pacific County, Wash.
police and fire signal shstem
1,363,000.00
-BONDS NOT
The $14,500 issue of warrant refunding bonds offered on March SOLD.
School bonds
333.000.00
6-V. 136.
p. 1415
-was not sold.
1,696,000.00
Town of Union section:
BONDS RE
-OFFERED.
-Sealed bids will be received until 7:30 p.
School bonds
on March 13 by George J. Dever, City Treasurer, for the purchase
830,000.00
of
Improvements to streets, sewers, buildings,
the above bonds. Said bonds to run 20 years from Feb. 15 1933.
police and fire signal system
maturing and numbered from 1 upward consecutively; which annual and
305.000.00
maturities shall commence with the second year after date of issue
1.135.000.00
of said
bonds and shall (as nearly as practicable) be in such amounts as will,
Total permanent bonds issued
gether with the interest on all outstanding bonds of said county be to85.986.000.00
met
Floating Debt
by an equal annual tax levy for the payment of said bonds and
interest.
The maximum rate of interest said bonds shall bear is 69
Tax bonds
-1929
$75.000.00
0
Tax bonds
and all bidders are required to submit a bid specifying (a) theper annum,
-1930
191.675.00
lowest rata
Tax bonds
of interest and premium, if any, above par at which such bdider
-1931
640.000.00
will
purchase said bonds; or (b) the lowest rate of interest at which
Tax bonds
-1932
701.500.00
bidder will
purchase said bonds at par. Said bonds will be sold to the bidder
making
the best bid subject to the right of the County Commissioners to
31,608.175.00
reject
Temporary improvement bonds
any and all bids and re-advertise. Said bonds will not be sold at less
421,214.24
than
par and accrued interest nor will any discount or commission be
Emergency bond
17,500.00
Public works bonds
or paid on the sale of said bonds. A certified check for 5% mustallowed
15,000.00
accombid.
pany the
Total temporary obligations
2.061.889.24
SPRINGFIELD, Greene County, Mo.-PRE-ELE
The $275.000 issue of sewer bonds that is to be voted onCTION SALE.
Total permanent and temporary obligations
at an election to
$8,047,889.24
April 11-V. 136, p. 1599
be held
-has been purchased by Stix & Co. of
Plus
-Due schools-1932 appropriation
$372.000.00
St. Louis, subject to the outcome, - ccording to the City Clerk.
Due County Treasurer-1932 appropriation _
724,386.83
STEVENS POINT, Portage County, Wis.-BONDS
Reserve-1932 bills-1932 appropriation_ _ _
59,649.50
AUTHORIZED.
-The City Council has authorized the issuance of
1.156.036.33
$20,000 67 coupon
special improvement street bonds, series of 1932. Denom.
.
°
Gross debt
Dec. 1 1932. Due $4,000 from Dec. 1 1933 to 1937, incl. $500 Dated
$9.203.925.57
Prin. and int.
Less
-Unpaid taxes 1929
(J. & D.) payable at the office of the City Treasurer.
$53,391.79
Unpaid taxes 1930
200,149.10
SUPERIOR, Douglas County, Wis.-BOND
Unpaid taxes 1931
647.339.66
ELECTION.
-At an
election to be held on March 14 the voters will pass on
Unpaid taxes 1932
1,573.320.23
a proposal to issue
850,000 in bonds for an incinerator
-V. 136, P. 1416.
$2,474,200.78
SWIFT COUNTY (P. 0. Benson), Minn.
Due from County Treasurer
-PRICE PAID.
-The two
issues of 5% coupon semi-ann. bonds aggregating
Bank stock tax
$4,611.95
$130.000. that were
purchased by IL W. Moody of St. Paul-V.
Gasoline tax
136.
13.803.90
-were sold at
oar. There were no other bids for the bonds, which p. 1599
are divided as follows:
18,415.85
99,000 drainage refunding bonds. Due in from 5 to 15
Sinking Fund
years.
1.000 refunding bonds. Due in from 3 to 20
Cash in banks
52,211.69
years.
Investments in permanent and
TENNESSEE, State of (P. 0. Nashville).
temporary bonds of Union City,
FINANCE CORPORATION LOAN GRANTED. -RECONSTRUCTION
N..1.
-On March 3 the R. F. C.
622,930.64
made the following announcement of a relief loan grant:
675,142.33
"The Corporation, upon application of the Governor of
Cash in banks
Tennessee. to-day
95,470.59
made available $588,435 to meet current emergency relief needs
Special assessments levied & uncollected applicin
ties of that State during the month of March. These funds 77 counable to the payment of any part of the Payare made
available under Title I, Section 1. subsection (c), of
ment of any part of the gross indebtedness... 181,846.00
the Emergency Relief
and Construction Act of 1932.
3,445.075.55
"In support of his application the Governor stated that
funds now available or which can be made available within the State at this
Net debt. Dec. 31 1932
$5,758,850.02
quate to meet the relief needs in these political subdivisions. time are inadeBonds and notes listed in the gTOSS debt pro"The R. F. C. heretofore has made available $1.877,588
vided for payment in the 1933 budget
317.320.00
emergency relief needs in various political subdivisions to meet current
1929 tax revenue bond
of the State of
60,000.00
Tennessee."
377.320.00
BOND BILLS INTRODUCED.
The Governing Body has authorized an issue of $835,000
-The following bills have recently
in school bonds
been
introduced in the Legislature: Macon County, providing
dated April 1 1932 and maturing serially 1934-1972.
There has been sold
bonds; Cannon County, providing for $12,000 refunding for $75,000 road
$360.000 in permanent bonds and $320.000 in temporary bonds,
a total
County, providing for S32,500 refunding bonds; Bedford bonds; Jefferson
of 8680.000, remaining to be sold $155.000. The
entire $835.000 is listed
County, to repeal
in this debt statement under permanent bonds and
a 8300,000 issue of county bonds.
the $320,000 is not
Also the following: Shelbyville, to validate $100,000
mentioned in temporary bonds as this would be a duplication.
In addition to outstanding taxes as listed above
Gibson County, to validate $106.800 school notes, and refunding bonds;
still owing for the years 1928 and prior. The debt there is about $250.000
a bill which would authorize the county to borrow fromHamilton County,
incurred by the city for
the R. F. C.
these years has been paid and anything coming in would
be a surplus.
Financial Chronicle
1754
Statement of Tax Levy, Collections, Valuations, Tax Rate and Population
(Jan. 11933).
1932.
1931.
1930.
Tax Levy$
Schools-local
855,000.00
909,000.00
853,000.00
City purposes
1,774.055.00 1,708,911.58 1,765,126.94
County
611.880.51
632,362.79
569,112.46
State road
70,431.36
71,861.86
72,197.46
191,796.24
State school
194,397.96
195,656.51
9,621.29
Soldiers' bonus
9,731.37
9,976.69
State institutions
36,098.73
2,410.04
5,628.63
First District court
4,165.64
s
Tax levy
3,514,262.49
Taxes
Outstanding end of year of levy 1,268,131.92
Outstanding, Dec. 31 1932-- - - 200,149.10
Outstanding, Feb. 15 1933-173,325.84
Valuations
Land
Improvements.
42,137.700.00
Personal
3,658.900.00
Second class railroad
20,662.00
3,531,894.19 3,506,266.39
1,364,650.81
647,339.66
614,305.73
1,573,320.23
1,573,320.23
1.443,664.24
25.848,000.00 25.797,100.00
42,170,100.00 42.183,600.00
3,655,600.00 3.192.250.00
20.662.00
20.662.00
Total
71,639,462.00 71,694,362.00 71,193,612.00
Tax Rate
48.53
49.04
47.76
West Hoboken section
Town of Union section
49.78
51.27
49.58
Population-Census of 1930-58,659. Consolidation on June 1 1925 of
the towns of West Hoboken and Town of Union the former incorporated
as a town in 1884 and the latter as a township in 1808. On June 4 1930
commission form of government was adopted.
VINCENNES, Knox County, I n d.
-OVER-THE-COUNTER OFFERING MADE.
-The issue of 460,000 6% temport.ry loan notes for
Which no bids were submitted on Feb. 28-V. 136, p. 1599
-is being
offered for purchase over-the-counter, according to the City Clerk. The
notes mature in units of $35,000 each on July 1 and Dec. 31 1933, respectively.
WACO, McLennan County, Tex.
-PROPOSED BOND CANCELLATION.
-At an election to be held on April 4, it is reported that the voters
will be asked to pass on a proposal to cancel $320,000 of bonds that have
been authorized but not issued, divided as follows: 4100,000 bridges and
culverts; $100,000 schools; 475,000 streets; $25,000 drainage, and 420,000
sewer bonds.
-BOND E XCHANGE.WADSWORTH, Medina County, Ohio.
Wade Hart, City Auditor, reports that the issue of $28.000 6% special
assessment improvement bonds unsuccessfully offered on Jan. 13-V. 136,
p. 528-will be given in exchange for notes held by the Fifth-Third Union
Trust Co. of Cincinnati. The bonds bear date of Nov. 15 1932 and mature
serially on Oct. 1 from 1934 to 1943, inclusive.
WARREN, Trumbull County, Ohio.
-BONDS AUTHORIZFID.-The
city council has adopted an ordinance providing for the issuance .4'$28,000
6% tax deficiency bonds. Dated Feb. 1 1933. Denom. $1.000. Due
Oct. 1 as follows: $3,000 from 1934 to 1941 incl., and $4,000 in 1942.
WARREN, Trumbull County, Ohio.
-BONDS NOT SOLD.
-The
Issue of 45,167.50 6% fire department equipment purchase bonds offered
-was not sold, as no bids were received.
on Feb. 20-V. 136, P. 1239
Dated Jan. 11933. Due Oct. 1 as follows: $1,267.50 in 1934 and 41.300
from 1935 to 1937 incl.
WASHINGTON,State of(P.O.Olympia).-LEGISLATUREPASSES
RELIEF BOND BILL.-Tne State Legislature is said to have passed the
bill calling for the issuance of $10,000,000 in bonds to be used for the relief
of unemployment
-V. 136, P. 1416. The bill will now be taken to the
State Supreme Court for approval. It is hoped that the court will approve
the issue in spite of the State constitutional limit imposed on bond issues in
excess of 4400,000. without the direct consent of the voters.
WASHINGTON, State of (P. 0. Olympia).
-RECONSTRUCTION
FINANCE CORPORATION LOAN GRANTE0.-On March 3 the following announcement of a relief loan grant was made by the R. F. 0.:
"Upon application of the Governor of Washington, the Corporation
to-day niade available $1,233,933 to meet current emergency relief needs
In four i
t de
of that State during the months of March and April 1933.
"Those funds are made available under Title I, Section I, subsection (c)
of the Emergency Relief and Construction Act of 1932.
"It Is stated that legislation has been enacted, taking effect immediately,
which Is designed to alleviate the suffering in the State caused by unemployment, and which creates an Emergency Relief Administration for the
State.
"The R. F. C. heretofore has made available $2.782.525 to meet current
emergency relief needs in various political subdivisions of the State of
Washington."
-The granting of another loan was
ADDITIONAL LOAN GRANTED.
announced as follows on March 9:
"Upon application of the Governor of Washington, the R. F. 0. to-day
made available 4639.250 to meet current emergency relief needs in 17
counties of that State for the period March 1 to April 30 1933.
"These funds are made available under Title I, Section 1, subsection (c)
of the Emergency Relief and Construction Act of 1932.
"The Corporation heretofore has made available $4,016,458 to meet
current emergency relief needs in various political subdivisions of the State
of Washington."
WASHINGTON TOWNSHIP SCHOOL DISTRICT (P. 0. R. D.
-TAXPAYERS OPPOSE
No. 4, Waynesboro), Franklin County, Pa.
-The Dauphin County Court in a decision handed
BOND ISSUANCE.
down on March 1 upheld the right of three local taxpayers to appeal from
the decision of the State Department of Internal Affairs in approving of
the issuance of 460,000 4% school bonds which were scheduled for award
on that date
-V. 136, p. 1416.
-NOTE SALE.
WAYNE COUNTY (P. 0. Richmond), Ind.
-The
$132,000 6% poor relief notes offered on March 8-V. 136. P. 1062-were
awarded at par on the joint bid of C. W. McNear & Co. of Chicago and
Walter, Woody & Heimerdinger of Cincinnati. Dated 'Nob. 15 1933.
Due $8.250 May and Nov. 15 from 1934 to 1941 inclusive.
-BOND ELECTION.
-An
VIrEATHERFORD, Parker County, Tex.
election will be held on March 28. according to report, to vote on the
proposed issuance of $7,500 In 6% city hall and fire station bonds. Due
In not to exceed 10 years.
WEEHAWKEN TOWNSHIP (P. 0. Weehawken) Hudson County,
N. J.
-BOND OFFERING.
-Leo P. Carroll, Township Clerk, will receive
sealed bids until 9 p.m. on March 15 for the purchase of $128,000 4%
coupon or registered bonds, divided as follows:
4103,000 general improvement bonds. Due Sept. 15 as follows: 45,000
from 1934 to 1951, incl.; $6,000 in 195 , and $7,000 in 1953.
25,000 assessment bonds. Due Sept. 15 as follows: $3,000 from 1934
No 1936, incl. and 44,000 front 1937 to 1940, incl.
Each issue will be dated March 15 1933. Denom. $1.000. Principal
andainterest (March and Sept. 15) are payable at the Hamilton National
Bank, Weehawken. Bids will also be considered for the bonds to bear
interest at a rate other than 43%. expressed in a multiple of yi of 1%.
One rate to be named for all of the bonds. No more bonds are to be awarded
than will produce a premium of 41,000 over the amount of each issue. A
certified check for 2% of the bonds bid for, payable to the order of the
Township, must accompany each proposal. The successful bidder will be
furnished with the opinion of Reed, Hoyt & Washburn, of New York,
that the bonds are valid and binding obligations of the Township.
WEISER IRRIGATION DISTRICT (P. 0. Weiser) Washington
-We are informed that
County, Ida.
-BOND SALE AND EXCHANGE.
the $111,000 bonds voted at the election on Sept. 10-V. 135, p. 2528
has since been disposed of as follows: $12,000 Irrigation intake bonds were
purchased at par by Sudier. Wegener & Co. of Boise, and the $99,000
refunding bonds have been exchanged with the original holders.
-BOND
wEsr FELICIANA PARISH (P. 0. St. Franciville), La.
EXCHANGE.
-We are informed that the $34,000 issue of liquidation
-has been
bonds approved by the voters on Nov. 8-V. 135, P. 3560
accepted,by the bondholders in lies of their old bonds.
March 11 1933
-RECONSTRUCWEST VIRGINIA, State of (P. 0. Charleston).
TION FINANCE CORPORATION GRANTS LOAN.
-The R. F. C. on
March 9 issued the following report on a relief loan grant to this State:
"The Corporation, upon application of the Governor of West Virginia,
to-day made available $45,504 to meet current emergency relief needs in
Gilmer and Webster Counties during the months of March and April 1933.
"These funds are made available under Title I, Section 1, subsection (c)
of toe Emergency Relief and Construction Act of 1932.
"The R. F. C. heretofore has made available $8,259,824 to meet current
emergency relic! needs in various political subdivisions of the State of
West Virginia."
WYOMING, State of (P. 0. Cheyenne).
-BONDING ABILITY OF
STATE CONSTRICTED.
-According to newspaper reports the State is
now unable to put out a bond issue because of the depreciation in real
estate and other taxable values, since the constitution provides that Wyoming may not be bonded over 1% of the valuation of taxable property in
the State.
YAKIMA COUNTY (P. 0. Yakima), Wash.
-BONDS AND WARRANTS CALLED.
-C. D. Stephens, County Treasurer, is reported to
have called for payment at his office on and after Feb. 21, various school
district, current expense, general road and bridge, soldiers' relief, dike,
drainage and irrigation bonds and warrants.
CANADA, its Provinces and Municipalities
BRITISH COLUMBIA (Province of).
-BOND ISSUES AUTHORIZED.
-The Municipal Department of the Provincial Government has issued
certificates approving of the following described bond issues, according to
the March 3 issue of the "Monetary Times" of Toronto:
District of Penticton-333,500, payable in 20 years with interest at 5%,
payable half-yearly.
Corporation of Delta-4376, payable in 10 years, with interest at 535%,
payable half-yearly.
Corporation of Delta-3531, payable in 10 years, with interest at 5H%.
payable half-yearly.
City of Chilliwack-$6,500, payable in 10 years with interest at 6%,
payable half
-yearly.
City of Grand Forks
-410.000. payable in 20 years with Interest at 6H %.
payable half-yearly.
District of North Cowichan-43,270 payable in 10 years with interest
at 5 %,payable half
-yearly.
CALGARY,Alta.
-BONDPAYMENT IN UNITED STATES FUNDS
ARRAAGED.-The city has obtained gold from the Dominion Government
for the purpose of paying $5,185 due the Malden Trust Co.. of Malden, on
account of bonds held by the institution which became payable in New
York funds on Jan. 1 1933. A total of about 42,609,000 bonds matured on
that date and the city council voted to make payment only in Canadian
funds. Three weeks ago the Malden Trust Co. Instituted court action in
Canada to compel the city to make payment of the obligations in its possession in United States funds
-V. 136, p. 1240.
CANADA (Dominion of).
-4200,000,000 LOAN POSSIBLE.
-Continned rise in the value of the pound sterling and the Canadian dollar as
reflected in current quotations in the foreign exchange market may result
In the flotation of a Dominion loan of perhaps 4200,000.000 in Great
Britain within the next few months, according to a dispatch from Toronto
to the "Herald-Tribune" of March 7.
-BUDGET ANALYSIS OF' WESTERN
CANADA (Dominion of).
PROVINCES.
-The Dominion Securities Corp. recently issued a report on
the finances of the Provinces of Manitoba, Saskatchewan, Alberta and
British Columbia, particularly with respect to their budget position. The
Toronto "Globe" of March 1 summarized the text of the report as follows:
"Manitoba entered the depression years with a substantial cash reserve,
which was drawn upon to balance the accounts of the Province In the fiscal
years ending April 30 1931 and 1932. Manitoba received from the Federal
Government in July 1930. a cash payment of $4,584.212, representing a
financial readjustment for the period between its entrance into Confederation in 1870 and July 1908. By this means Government accounts are
balanced in 1931 and 1932.
"The recent financial statement of the Treasurer of Saskatchewan said
that, in place of a deficit of $5,820,000. as reported for the fiscal year 1932,
the present fiscal year will show a deficit of less than $1,000,000 an improvement of over $4.800,000.
"Alberta showed a deficit of 45353.050 for the fiscal year ending March
31 1932. By means of sweeping reductions in expenditures an increase of
taxation rates, and imposition of new taxation, the first half of the current
fiscal year shows an improvement in Alberta's finances of $2,600,000.
"British Columbia closed the fiscal year ending March 31 1932. with a
deficit of 47,051.561. after allowing for sinking fund and debt redemption
amounting to $2,332,38:1. A substantial improvement is reported by the
Dominion Securities Corporation, which estimates 'a reasonable close
approximation to their balance between revenues and expenditures' for
the current year."
LONDON, Ont.-BOND AUTHORITY SOUGHT.
-The city has made
application to the Provincial Government for authority to issue 4500,000
bonds.
-The city Is expected
LONGUEIL, Que.-PROPOSED BOND ISSUE.
to offer for sale shortly an issue of 400.000 bonds, according to report.
OTTAWA, Ont.-FINANCIAL STATEMENT
-TAX COLLECTION
• REPORT.
-G.P. Gordon, Commissioner of Finance, under date of March 7
-pertaining to the proposed sale of
confirms the report in V. 136. p. 1600
various bond issues aggregating 41,570,474 and forwards the following
data with respect to the finances of the city:
Financial Statement as of Dec. 31 1932.
Total bonded debt (not incl. proposed Issues):
$10,768,613.16
Sinking fund bonds
12.328,538.78
Serial bonds
$5.216,780:6923,097351.94
1
Water debt (included in above)
930,230.19
Hydro-Electric System debt (incl. In above)_
Sinking fund for gen. debt_ _ __42,473,862.91
765,706.10
Public school debt
1,423,073.87
Water debt
244,241.41
Collegiate institute debt_ _
Tax anticipation and all other floating debt_ _
1,230.913.51
2,473,220.35
Bank advances on capital construction
Special assessment debt (incl. above)
3,873.151.09
Assessed valuation (1932):
4135,219,079.00
Real property
9,252.151.00
Income
15,160.313.00
Business
Total assessed valuation
4159,631,543.00
Real prop. exempt from taxation (not incl.
74,788.479.00
above)
Tax rate per 41,000.00, 1932: 435.00 Public schools; $41.95 separate
schools. Population, 1930. 125,496; 1932, 130,67. The city has no overlapping indebtedness.
Tax Report ()ated Feb. 259133).
Uncollected
Uncollected
at End of
.
at Latest
Total
Year of Levy.
Available Date,
Fiscal Year
Levy.
Amount.
Dec. 311932.
Beginning.
1928 and 1929165,093.60
50.870.75
45,595,002.69
$442 - - -- - 9 8.513
.9
1930
6,371,581.62
198,071.06
508,916.28
1931
675,845.81
6,328,028.79
675,845.81
1932
Fiscal year dates, Dec.31. Date tax bills are billed, June 18 and Nov. 18.
Delinquent date Dec. 31.
ST. HONORE, Chicoutimi County, Que.-TO PAY BOND IN-0. Morin, President of the Quebec Municipal Commission,
TEREST.
has notified holders of bonds of St. Honore that the municipality is now
ready to pay the arrears in interest on its debentures.which was due on
May 1 and Aug. 11932, according to the "Monetary Times" of Toronto of
March 3.
-The city council has
TORONTO, Ont.-BONDS AUTHORIZED.
adopted several by-laws providing for the issuance of various improvement
bonds aggregating $1,298,000.
@FedFRASER