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VOL. 126.
SATURDAY MAY 26 1928.
NO. 3283.
Stock Exchange, but in all the security markets
throughout the length and breadth of the land, and
PUBLISHED WEEKLY
in the grain and other exchanges as well, with brokTerms of Subscription—Payable in Advance
12 Mos. 6 Mos. ers' loans running up to $4,000,000,000 and $5,000,Including Postage—
$6.00
$10.00
Within Continental United States except Alaska
6.75
11.50
In Dominion of Canada
magnitude as to prompt inves7.75 000,000, and of such
Other foreign countries, U. S. Possessions and territories_ 13.50
exchange.
of
the
in
rates
NOTICE.—On account of the fluctuations
when stock
remittances for European subscriptions sad advertisements must be made tigation in both houses of Congress;
In New York funds.
The following publications are also issued. For the Bank and Quota- prices were being boosted in a way which demontion Record the subscription price is $6.00 per year: for all the others IS
15.00 per year. For any three combined the subscription price is $12 per
strated unmistakably that the whole community
year. and for the whole five combined it Is $20 Per Year.
MONTHLY PUBLICATIONS—
COMPRNDIUMS-RECORD
AND
QUOTATION
BANS
nnually)
IITILITY—(semi-a
PUBLIC
was being carried away in a whirlwind of speculaMONTHLY EARNINGS RECORD
RAILWAY & Ixnuaraxat—(semi-ann.)
STAYS AND MuNicIP•L—(aemi-annually)
tion, and that men were losing at once their heads
Terms of Advertising
45 cents and their sense of proportion—a time therefore
Transient display matter per agate line
On request
Contract and Card rates
Representative,
of
Gray,
Fred.
H.
charge
Orrice—In
Western
Oreicaoo
when there was need of the utmost prudence and
208 South La Salle Street. Telephone State 0613.
LONDON Orrice—Edwards, & Smith. 1 Drapers' Gardens, London, E. 0.
caution and of the fullest fund of information bearWILLIAM B. DANA COMPANY, Publishers,
Front, Pine and Depeyster Streets, New York
ing on the banking and financial situation in the
financial centre—at such a juncture the
Published every Saturday morning by WILLIAM B. DANA COMPANY. country's
President and Editor, Jacob Seibert: Business Manager, Wiliam D. Riggs;
Treas.. William Dana Seibert; Sec., Herbert D.Seibert. Addresses of all. Office of Co. Clearing House suddenly cuts off a fund of current
financial Thronich
statistics that had been unreservedly supplied from
The Action of the New York Clearing House in
the beginning. When the future historian writes
Discontinuing Its Weekly Summaries of Connarrative of this hectic period, the course of the
dition—The Philadelphia Clearing House the
New York Clearing House in the particular referred
Follows Suit.
conspicuous
We continue to receive inquiries concerning the to will certainly stand out as a most
House
Clearing
York
New
the
action of the New York Clearing House in discon- event, the more so as
leadership
tinuing the weekly summaries of condition of its has always held a position of undisputed
which it
members which it had been the custom to furnish in the financial world—a leadership of
the produring the whole of the period since the organiza- cannot be said to have been deprived even by
finantion of the Clearing House Association, nearly three- jection of the Federal Reserve system into the
quarters of a century ago, and as to the reasons which cial and banking arena.
This influential body of banking institutions, wedprompted this extraordinary step., We discussed
practice to safe
the subject in an article in our issue of March 31, ded by tradition and by confirmed
to the dissemination
the week in which announcement came of the change and sound principles and given
which constituted he
it had been decided to make, but before the appear- of information and statistics
these principles, emiance of the statement in the new form, and gave our strongest prop in support of
the implicit acceptance
reasons for thinking that the course taken was nent for its wise counsel and
the Clearing House to
without warrant or justification. In view of the of whose guidance has raised
of the greatest pilinquiries referred to, however, and the fact that the a level where it has become one
structure
financial
Philadelphia Clearing House has now also curtailed lars of strength in the country's
suddenly takes
its weekly summaries, it seems desirable to go over —this highly esteemed organization
of line with all its past record
the ground again and indicate more fully than was a step completely out
absolutely nothing to recommend it,
possible before the appearance of the Saturday week- and which has
a word
ly exhibits in their altered shape, the character and and in palliation or defense of which not
'extent of the departure.
can be said.
Are we exaggerating? Are we magnifying a trivThe episode will always remain one of the most
and making it seem
notable in the financial and banking annals of New ial or unimportant occurrence
moment? Let the facts speak
York City and of the country. At a time when spec- a development of great
Clearing House has done
ulation was rampant, not only on the New York for themselves. What the
3174
FINANCIAL CHRONICLE
has been completely to alter its course-change from
giving the fullest and most comprehensive periodic
publicity to giving no publicity at all so far as furnishing any essential facts is concerned. As the
best way of indicating how complete the departure
has been, we introduce here a specimen of the statement, or rather series of statements, in the old form
(using for the purpose the last set issued, namely,
that for March 24), and a specimen of the statement
in the new form. The contrast is really startling.
Let the reader note well the difference between
the weekly return in the elaborate shape in which it
was formerly compiled and made public and the
meagre and emasculated and insignificant little table that now does duty as the weekly return of the
Clearing House institutions.
WHAT THE NEW YORK CLEARING HOUSE USED
TO GIVE.
STATEMENT NO. 1.
NEW YORK CLEARING HOUSE.
STATEMENT OF THE MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION-AVERAGES--FOR WEEK ENDING SATURDAY,
MARCH 24 1928.
(Stated in thousands of dollars-that is. three ciphers [000i omitted.)
ClearingHousel
Members.
Reserv
Loans,
Discount,
with
Nat.
Invest-Cash Legal
Na
Time Bank
Na
in
Deport Demand
De- Circ uWeill Profits
Vault. tortes. Deposits. posits. lallon,
etc.
meats,
Members of Fe d. Res. Bank
Bank of N Y &
5 I $
Trust Co.6,00G 12,864
Bk of Manlia-Vn 12,
19,258
Bank of America 6,5001 6,3981
Nat City Bank_ 75,000 70.3801
Chemical Nat'l- 5,000 19,083
Nat Bk of Comm 25,000 45,596
ChatPhNB&Ti1 13,500 14.71
Hanover Nat'l_ 5,''' 26.4401
Corn Exchange_ 11,111 17,6671
National Park__ 10,111 26,2571
Bowery & E Riv 4,1 1 i 7.255
First National- 10,''' 84,391
Am Ex Irving Tr 2,1 i i, 31,866
Continental Bk_ 1,0001 1,36
Chase National- 50,,'' 57,47
Fifth Avenue_ _
II 3,36
Garfield Nat'l__ 1,''' 1,931
Seaboard Nat'l_ 9,111 14,081
Bankers Trust- 20,1 I 1 42,591
Li s Mtge & Tr_ 5,111 0,015
Guaranty Trust 30 1 1 1 37.46
Fidelity Trust_ - 4 i 11 3,636
NY Trust
10.'I' 23,7751
Farmers L & Tr 10,i II 21,728
Equitable Trust 30,011 25,574
Average Average Averag
$
i
$
80.683
506 7,431
188,881 3,134 19,284
91,112
999 11,971
875,556 4,697 87,212
149,469 1,217 17,658
388.726
386 42,02
221,222 2,494 23,05
139,807 1,395 16.561
206,537 4,091 23,941
191,737
72 17,72
78,053 1,947 7,096
325,811
508 29,112
445,120 2,842 51,22
8,382
126 1,216
681,129 4,588 77,16
641 3,43
27.58
16,78
475 2,082
145,968
988 17,276
387,047
824 38,326
68,279
762 8,169
523,961 1,333 53,631
47,324
581 5,546
202,787
581 21,218
141,849
591 15,239
299,361 1,268 32,499
Average Average As'ge
$
$
$
55,315 7,553
139,833 30,623
92,3
4.392
a875,697 158.627
99
132,219 5,135 347
314.813 33,433
165,01. 44,890 6,150
125.645 3.162 -172.010 30,811
132,8.: 13.963 4:710
48,116 23,374 3,978
221,876 10,583 6,778
381,011 55,822
8,892
500
6597.742 47.117 2:474
26,152 1,904 -16,100
312
131,126 7.654
43
e335,676 47,114
61.020 4,180 --d458,278 92,693 -40,793 5,039
155,692 34,098
e113,395 18,608
f337,085 29,728 ---
State Bank Not Member of Fed. Res. Bk.
Colonial Bank_ _ 1,400 3.633 34,758 3,659
1,8761
27,952 6,858 -Trust Cornea ales Not Me mbers of Fed.R es.Ban Ik.
State Bank & Tr 5,000 6,378 106,384 3.73: 1,993
37,082 61,565
Title Guar 2, Tr 10,000 21,767 68.988 1,6.1 4,433
40,331 2,006 --Lawyers Trust. 3.000 3,75728,521
96
2,268
21.09
1.858
TotalsMembersF RBk 380,000 019,1895,930,12: 37.662630,1021t4,634,054 711,01524,579
Rate bank, not
!umber
.11
1,400 3,633 34.758 3,669 1,876
R Bank
27,952 6.85:
Frost co's, not
members of F
98.507 65,429 ._ _ _
18.0001 31,903 201,891 8.356 8.69
R Bank
a
kggregate,
n3
c.30
92
e .5,79
29 rnembers_ _ 405,4001654,728 6.166,77' 47,677840,672114,760,51378
Decrease Decree Decesel Decrease51 I r
I
RA R AO
208 14.219
114.40 24.245
28
*As per official reports. 11 National. Feb. 28 1928;6 State, Mar.2 1928; 12 Trust
Co's, Mar. 2 1928.
(a) Includes deposits In foreign branches, 8265,555.000, not incl..,in total footings,
14,718,000.
54,410,000.
..
..
70.373.000.
"
(d)
..
2,024,000.
"
"
(e)
93,586.000,
s've for such.depos _ 845,962.000
.
.
i In foreign countries as7
(a)Balances.carried in banks
. 0.000
(b)
1,293,000
(c)
..
..
2,878,000
"
(d)
(e).4
2,024,000
..
••
..
8.572,000
(f)
liabilities.
other
8855,218.000J
acceptances
and
(Bills payable, rediscounts.
RESERVE POSITION ON BASIS OF AVERAGES FOR WEEK,
p
l
46
66
••
(C)
06
44
...
S.
•
4.
O.
0.
Reserve
Cash
in
Reserve
In Vault. Depository.
8
$
Members Federal
630,102,000
Reserve Bank_ _
State bank, not
member of Fed.
Res. Bank
3,6.59,000 1,876,000
Trust co's, not
members of Fed.
Rea. Bank
6,356,000 8,694,000
Totals
Reserve
Required on-
Excess.
$
Net demand dep.602,427,020
Net time dep____ 21,330,450
8
Total required_ 623,757.470 8,344,530
do
do....
5,031,360
503.640
do
do_ _ _ _ 14,776,0.50
273,950
10,015,000640,672,000 Grand total req._ 643.564,880 7,122,120
Clearing House
Members.
Loans,
Reeetvel -.
Discount,
with
Nat.
InvestIn
Legal I
Net
71ms Bank
Net
meals.
Cash Depos4l Demand
De- Circu*Cal'''.Profits
cte.
Vault. tortes. Deposits. posits. fatten.
TotalsMembersFR Bk
State bank, not
member of F
It Bank
Trust co's. not
members of F
R Bank
(000 omitted)
37,917637,99 14,801,406 16,68224,652
6,909,92
Aggregate,
29 members__
35.049
3,724
1,74
28,1
201,874
8,279
8,799
98,28
8,882
_
65,47 . --- -
6.146,84: 47,920648,54064,727,
787,89424,652
' Deer .Incr
'
se Decr'll Decrease Incr'seDetese
58.999 1.5971 48.9g
177.982 22.81111
41
Comparisons_ __
U. S. depos ts deducted. 572,553,000. h U.S. deposits deducted, $71,373,000.
iDeposits in foreign branches not included.
Bills payable, rediscounts, acceptances and other liabilities.
08868,942,000.
RESERVE POSITION ON BASIS OF ACTUAL FIGURES
Cash
Reserve
Reserve
in
In Vault. Depository.
Members Federal
Reserve Bank..
637.996,000
State bank not
member of Fed.
Res. Bank
3,724,000 1,745.000
Trust co's, not
members of Fed
Res. Bank
6,279,000 8,799.000
Totals
AT END OF WEEK
Reserve
Required on-
Excess.
I
I
Net demand dep.'598,182,650
Net time dep--_ 21.466,8601
$
Total required_ 619,649,51018,346,496
do
do___
5,067,000
402,000
do
do__ 14.742,450
335,550
10.003,000648.540,000 Grand total req..639.458,96019,084,040
Week ending March 24 1928
Week ending March 17 1928
This day, March 24 1928
Clearings.
$8,051,472,890.11
8,248,011,690.24
1455,118,788.11
Balances.
$917,436,753.33
975,242,247.47
110,670,451.48
STATEMENT NO. 2.
CLEARING HOUSE MEMBERS. DAILY AVERAGE.
Loans,discounts,investments. &c
86,168,775,000 Dec.$38,650,000
Cash in own vaults, members Fed. Res.Bank- _ -37,662,000 Dec.
547,000
*Reserve in Fed. Res. Bank of member banks_ --- 630,102,000
Dec. 14,329,000
*Reserve In own vaults, State banks and trust
companies not members Fed. Res. Bank
10,015,000 Inc.
341,000
*Reserve in depositaries, State banks and trust
companies not members Fed. Res. Bank
10,570,000 Inc.
110,000
x Net demand deposits
4,760,513,000 Dec. 114,405,000
Time deposits
783,302,000 Inc. 24,245,000
Circulation
24,579,000 Dee,
28,000
U. S. deposits deducted, 872,563,000.
*Aggregate reserve
Excess reserve
$650,687,000
7,122,120
Increase
$280,390
CLEARING HOUSE MEMBERS, ACTUAL CONDITION THIS DAY.
Loans,cUscounts,Investments,&c
68,148,648.000 Dec.858.999,000
Cash in own vaults. members Fed. Res. Bank _ _ _
37,917,000 Inc.
1,334,000
*Reserve in Fed. Res. Bank of member banks__
637.998,000 Dec. 48,681,000
*Reserve in own vaults, State banks and trust
companies not members Fed. Res. Bank
10,003,000 Inc.
263,000
*Reeerve in depositaries, State banks and trust
companies not members Fed. Res. Bank
10,544,000 Dec.
307,000
z Net demand deposits
4.727,838,000 Dec. 177,982,000
Time deposits
787,894,000 Inc. 22,681,000
Circulation
24,652.000 Dee.
41.000
z U. S. deposits deducted, 871,373,000.
• Aggregate reserve
Excess reserve
Decrease
8658,543,000
19.084,040
826,224,120
SUMMARY OF STATE BANKS AND TRUST COMPANIES IN GREATER
NEW YORK, NOT INCLUDED IN CLEARING HOUSE STATEMENT.
(Figures Furnished by State Banking Department.)
Loans,discounts,investments, Ste
$1,475.828,700 Dec. 54,585.400
Gold
5,367,600 Inc.
194,100
Currency and bank notes
22.288,900 Dec.
771,200
Deposits with Fed. Res. Bank of New York
128,118,500 Dec. 6,508,100
Total deposits
1,508,094,400 Dec. 1,611,200
Total deposits eliminating amounts due from reserve depositaries and from other banks and
trust companiesin N.Y.City,and U.S.deposits 1,421,299,500 Dee. 10,829,000
RESERVE.
State Banks. Per Cent.
Trust Cos. Per Cent,
Cash In vault
$35,721,700
17.61
$120,043,300
16.47
Deposits in banks and trust cos
10,867,800
05.26
30,936,600
04.24
Total
$46,389,500
22.87
$150,979,900
20.71
Aggregate reserve on deposits
8197,369.400 Dec. 58,614,500
Per cent of legal reserve, 21.1.
"
"
"
Actual Condition This Day.
68
••
(f)
46
66
[Vol.. 126.
STATEMENT NO. 3.
STATEMENT OF CLEARING NON-MEMBERS OF THE NEW YORK
CLEARING HOUSE ASSOCIATION.
(Stated in thousands of dollars, that is, three ciphers (0001 milted.)
CLEARING
NON-MEMBERS
Week Ending
Mar. 24 1928.
Capt.
Loans,
Res've
IX:- Cash
With
Net
Net counts. in
Legal Dern'd
Profits Invest- Vault. Deyo
Dep.
masts,
tortes.
dtc.
Nat.
Bank
Time Chew
Dep. fatten.
Member of
Ayer. Aver. Aver, Aver. Aye,. Aver.
Ferri Res've Bank. $
$
$
$
$
$
$
k$
Grace National Bank_ 1,000 2,017 18,217
87 1,4
9,68
4,063
996
Trust Company
Not Member of the
Federal Reserve Bank
Mech. Tr.. Bayonne..
500
739 9,389
276
189 3,418 5,799
,
Aggregate
1.500 2.757 27,606
363 1,593013,102 9.862
995
Def. in exc.res.24,510
Inc. Dec. Dec.
Dec.
Inc. Dec..,
Decrease
118,530
412
126
17
191
10
p5
Bills payable, rediscounts, acceptances and other liabilities, 64,061,000.
a U.S.deposits deducted,$426,000.
MAY 26 1928.]
FINANCIAL CHRONICLE
3175
WHAT THE NEW YORK CLEARING HOUSE NOW actual condition at the end of the week, were shown.
GIVES.
Long years ago the summaries related merely to the
STATEMENT OF THE MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR WEEK ENDING SATURDAY, MAY 19 1928.
averages, but on Feb. 8 1908, in deference to pub* Surplus .4 Na Demand
Time
lic opinion and to meet the criticism that averages
Deposits
Deposits
*Capital. Undivided
Cleaving House
Profits.
Average.
Members.
Average.
covering the six days of the week revealed nothing
$
3
8
$
62,370,000
9,235,000 as to the radical changes that may be taking place
Bank of N.Y.& Trust Co.._ 6,000,000 12,864,800
30,583,000
Bank of the Manhattan Co__ 12,500,000 19,258,700 145,646,000
125,000,000
x37,000,000
153.171,000
49,342,000
Amen__
from day to day, and gave no clue as to the actual
Bank of America Nat.
75,000,000 70,380,500 2888,759,000 168,296,000
National City Bank
5,000,000 19,083,500 133,466,000
5,604,000
Chemical National Bank
House institutions, the
51,262,000 condition of the Clearing
National Bank of Commerce_ 25,000,000 45,596,000 311,129,000
45,266,000
Chat.PhenlxNat.Bk.&Tr.Co 13.500,000 14,718,000 183,771,000
also the figures indito
add
decided
Clearing
House
5,000.000
26,440,500
127,554,000
2,999,000
Bank
National
Hanover
11,000,000 17,667,500 181,397.000
30,483,000
Corn Exchange Bank
10,000,000 25,257,600 132,571,000
18,023,000 cating the actual condition of the banks on the day
National Park Bank
10,000,000 84,391,300 251,992,000
11,955,000
First National Bank
55,445,000
Amer.Exchange Irving Tr.Co. 32,000,000 31,866,200 390,469,000
both the actual
1,000.000 1,368,800
7,905,000
600,000 of the return, and from that time on
Continental Bank
50,000,000 57,470,000 b583,011,000
54,820,000
Chase National Bank
989,000 figures and the averages formed an inseparable part
500,000 3,369,000
26,019,000
Fifth Avenue Bank
15,893,000
376,000
Garfield National Bank
1,000,000 1,931,900
6.239,000 of the weekly statement, though as a matter of fact
Seaboard National Bank
9,000,000 14,081,600 131,459,000
37,385,000
60,928,000
5,000,000 6,378,800
State Bank & Trust Co
53,885,000
Bankers Trust Co
20,000,000 42,591,000 c361,861,000
4,236.000 having the actual figures few persons any longer
59,575,000
U. S. Mtge. & Trust Co
5,000,000 6,015,400
42,007,000
1,983,000
10,000,000 21,767,200
Title Guarantee & Trust Co
Guaranty Trust Co
30,000,000 37,468,300 d464,508.000 101,398.000 paid any attention to the averages, the actual fig5,214,000
43,601,000
Fidelity Trust Co
4,000,000 3,636.800
4,131,000 ures virtually superseding the averages, which of
21,420.000
3,000.000 3,757,000
Lawyers Trust Co
39,362,000
New York Trust Co
10,000,000 23,775,200 146,164,000
24,649,000
Farmers Loan & Trust Co
10,000,000 21,728,300 e123,991,000
46.538,000 course was natural and proper, since the actual fig30,000,000 25,574,100 f344,922,000
Equitable Trust Co
6,862,000
30,075,000
Colonial Bank
1,400,000 3,633,800
ures alone disclose the true condition of the instituClearing Non-Members.
3,765,000
9.964,000
1,000,000 2,017,800
Grace National Bank
3,624.000
5,823,000 tions at the time of the return.
500.000
739,700
Mechanics Tr. Co., Bayonne..
491 Am myi set 690 snn 5 415 670 090 900 251.000
• 'Tn.Oa
But that was not all. At the instance of the
*As per official reports-12 National. Feb.28 1928;5 State, Mar.2 1928; 13 Trust
Co's. Mar. 2 1928. x As of April 28 1928.
Clearing House, the State Banking Department gave
Includes deposits in foreign branches—(s) 3281,896.000;(b) 815,037,000;(c) $63.870,000;(d) $83,029,000;(e) $2,206,000;(f) $99.359,000.
its co-operation and supplemented the effort of the
CLEARINGS.
Clearing
House itself by compiling and furnishing
$8,782,245,408.12
Week ending May 19 1928
7.903,697,798.69
Week ending May 12 1928
1,468,851,973.36 to the latter (which then made them public) figThis day, May 19 1928
The former statement, it will be seen, gave ures each week to show the condition of the State
absolutely everything needful to show the con- banks and trust companies in New York City not in
dition of the banks, both singly and collectively. The the Clearing House. These last mentioned figures
new statement contains nothing whatever needful were always given out in a separate and distinct
to that end. It is not alone that the old statement statement, apart from that from the Clearing House
gave so very much more, but that it was really a return itself. They, too, are no longer available.
model of perfection, in which respect it was in keep- That the figures referred to by no means covered an
ing with the whole character and history of the unimportant body of institutions will appear when
Clearing House itself as outlined in our remarks we say that in the last statement of the kind given
above. In the old form the different classes of in- out—that of March 24—they showed total deposits
stitutions composing the Clearing House member- of $1,421,299,500, after eliminating amounts due
ship, with their varying reserve requirements, were from reserve depositaries, from other banks and
all separately grouped and indeed that was abso- trust companies, as well as exchanges and United
lutely essential in order to obtain their true reserve States deposits, and that their aggregate gross decondition. First were given the banks and trust posits were $1,508,094,400, with loans and investcompanies which besides being members of the Clear- ments of $1,475,828,700. The New York Clearing
ing House are members also of the Federal Reserve House under the old conditions even went a step
system. Then the State banks not members of the further and furnished still another but minor stateFederal Reserve were given and finally the trust ment to show the condition figures for the clearing
companies which are not members of the Federal non-member banks; this at one time included quite
Reserve. Not only that, but all the different items a number of institutions, but on March 24 had been
which must be known to show the condition of a reduced to merely two banks. All of which was in
bank, were shown, one and all. After stating the pursuit of the determination to present as nearly
net demand deposits and the time deposits, the loans as possible an absolutely complete picture of the
and discounts were reported, as also the legal re- banking situation at the country's financial centre.
serves held and likewise the cash held in own vaults.
The most noteworthy and significant feature in
This was in addition to columns showing the capital this recital of what the New York Clearing House
of each bank and the surplus and undivided profits. Association used to give out with such undeviating
Most important of all, careful computations were regularity, is that it indicates so plainly the infinite
made, and formed part of the return, to show for pains taken to give all the essential facts needful
each class of institutions the reserves required, the to the forming of an accurate judgment of the bankreserves actually held, and whether those reserves ing situation—an indispensable requirement for the
were in excess or below the requirements, and in enlightenment of the banks themselves, as well as
what amounts. In the case of the separate banks for the general public. It is proper to say that
and trust companies, only the averages of condition comprehensive though the picture was it failed to
for the week were shown, but in the general sum- cover a few National banks not members of the
maries for the whole body of institutions, not only Clearing House, inasmuch as these, being outside
the averages for the week, but also the figures of the Clearing House and organized under National
3176
FINANCIAL CHRONICLE
[VoL. 126.
law, fell neither under the jurisdiction of the its present form is lacking in everything that such a
Clearing House or that of the State Banking return should contain.
And what are the reasons given in support of this
Department. The banks in this category are
chiefly the Harriman National Bank and the Pub- departure? On that point very little of an official
lic National Bank & Trust Company, and two or nature has been vouchsafed except to say that the
three others of minor size. But that was all that weekly statement had ceased to serve any useful
was lacking to make the exhibit absolutely com- purpose and that the Federal Reserve system is now
furnishing such extensive information regarding the
plete.
Now contrast with this attitude of most compre- banking situation that it is no longer needful for the
hensive publicity, the new attitude now displayed. Clearing House to continue its own returns. This
At one stroke the system for gathering and distrib- explanation, however, will hardly bear investigauting this weekly information regarding the con- tion. The announcement made at the Clearing House
dition of the banks and trust companies in this at the time, simply said: "The statement was useful
City is swept aside—in most summary fashion, too, in former years as a reflection of the local banking
with absolute arbitrariness and apparently without situation, but with the passage of the Federal Remuch if any consideration of what was involved in serve law, compelling all members to keep their rethe step. The Clearing House simply decided to serves with the central institution, the Clearing
drop the whole thing. And the action is the more House compilation became useless." Other statesurprising, as no demand for anything of the kind ments in explanation emanating directly or indihad come from the press or from any responsible rectly from the Clearing House, have been to the
public authority, and no one has anything to gain same effect, stress being always laid on the fact that
from the change except those having speculative the banks are no longer required to hold their reends in view. Yet even these latter had never dared serves in their own vaults, but that these reserves,
to think that any such radical departure was a re- under the Federal Reserve Act, must now be kept
motest possibility. The most that even they urged on deposit with the Federal Reserve Bank, and
was that the figures showing the actual condition that it is up to these Reserve institutions to see
of the banks should be eliminated, with the view of that the reserves are at all times up to the legal
course to hiding the fact that the Clearing House requirements.
Admitting all this—admitting that the banks, or
institutions were showing recurring deficits in reserve requirements, a circumstance most disconcert- at least such of them as are members of the Federal
ing to those engaged in promoting stock specula- Reserve system, are no longer required to retain
tion. They were willing enough to have the color- custody of their reserves, but are required to transless six-day averages (which reveal nothing as to fer such reserves to the keeping of the Federal Rethe actual condition of the banks, since the surplus serve Banks which are charged with the duty of seeof one day is offset against the deficit of the suc- ing that these reserves are always intact—does that
ceeding day or a series of recurring deficits) con- change the situation in the slightest degree? Even
tinued, but did not dare to think that the Clearing though the Federal Reserve Banks are endowed with
House could be induced to cast the whole system regulatory and supervisory functions over the memof weekly Clearing House returns, devised with so ber banks, does that absolve these latter from their
much labor and care and so well calculated to meet own duties and responsibilities in the premises?
the requirements of the situation, aside and throw And is it not just as important as before for the public, and the banking community itself, to know
it into discard.
A glance at the new form of statement which has whether the Clearing House institutions are comtaken the place of the former very elaborate and plying with legal requirements and maintaining remost comprehensive compilations, will suffice to serves at full volume or are allowing their reserves,
show that it is utterly devoid of value or useful- through excessive loaning, to become impaired and
ness. Besides a column to show the capital of the likewise the extent of the impairment.
What difference does it make, anyway, where the
banks, an item which changes only occasionally,
reserves
are kept or required to be kept. Is not
surplus
and
the
column
to
show
undivided
and a
regarding the adequacy of the reserves, as
knowledge
profits, which latter changes only when a new call
in the one case as in the other? And
indispensable
of condition is made by the Comptroller of the Currency or the State Banking Department, absolutely why should the Clearing House want to throw upon
nothing is given except the average of the net de- the Federal Reserve banks the two-fold responsibilmand deposits and the average of the time deposits. ity of seeing that the reserves are up to the requireNote what is missing. The loans and discounts are ments and at the same time of keeping the public
not shown, nor are the holdings of cash, nor the informed on that point? Since the Reserve banks
amount of reserves on deposit with the Federal Re- are no longer required or permitted to hold their
serve Bank or other legal depositories. All knowl- reserves in their own care, does not that furnish
edge regarding the cash and reserve position of the more, rather than less, reason for disclosing whether
institutions, both individually and collectively, is the required reserves are kept with the Federal
withheld. No one would have thought such a thing Reserve institutions? To us the whole thing seems
possible before it actually happened. The return in like a quibbling with words.
MAY 26 1928.]
FINANCIAL CHRONICLE
One other point deserves consideration. In one
of the news items which appeared at the time regarding the action of the Clearing House, it was
stated that the Clearing House authorities entertained the view that "ample data regarding current banking conditions are afforded in the weekly
Federal Reserve statement, member bank reports
and brokers' loan figures from the Federal Reserve
member banks and from the Stock Exchange." The
Federal Reserve banks do furnish extensive information along the lines indicated. But can these statistics be considered as in any way as a substitute
or the equivalent of the carefully devised and detailed analysis which the Clearing House had been
furnishing? The answer is most emphatically no.
As noted in our previous comment, the Clearing
House banks and trust companies constitute a distinct and distinctive body of institutions and probably will remain so to the end of time. It will
always be important to know the changes from week
to week in the Clearing House institutions, entirely
apart from the banking institutions outside the
Clearing House organization. Besides, as we have
already seen, the New York State Banking Department always acted in co-operation with the Clearing House and furnished a separate statement showing the condition of the State banks and trust companies outside the Clearing House. Thus the Clearing House's own return, in conjunction with this
statement of the State Banking Department, afforded a complete exposition of the banking situation in this city—barring only the three or four national banks not members of the Clearing House to
which reference has already been made. The Federal Reserve statement for the member banks, while
highly useful, cannot be said to cover the field with
quite the same degree of completeness. It is true
that some of the larger State banking institutions,
notably the trust companies, are members of the
Federal Reserve and therefore are included in the
returns for the member banks which the Federal Reserve Bank of New York compiles each week. But
there are also several other important trust companies which are not members of the Federal Reserve system and hence are not included in the weekly Federal Reserve statement.
There are now 46 banks and trust companies in
the list of reporting member banks in New York
City for which figures are furnished by the Federal
Reserve Bank, but be it noted that the following
important trust companies are entirely absent from
the list, namely, the State Bank & Trust Company,
which last Saturday showed $60,928,000 of time deposits and $37,385,000 of net demand deposits; the
Title Guarantee & Trust Company, which had $1,983,000 of time deposits and $42,007,000 of demand
deposits; the Lawyers' Trust Company, which had
$4,131,000 of time deposits and $21,420,000 of demand deposits; also the Colonial Bank, which had
$6,862,000 of time deposits and $30,075,000 of demand deposits. These are all institutions of considerable size which were regularly included in the
3177
Clearing House return, but are missing in the member bank returns of the Federal Reserve. The supplementary statement which it was the custom of
the State Banking Department to furnish contained
of course a host of other State banking institutions
which do not appear in the Federal Reserve list.
Not all of these are small institutions. Some are
of considerable size. Among them may be mentioned the Empire Trust Co., which on March 2
reported deposits of $72,821,951; the Central Mercantile Bank & Trust Co., which had deposits of
$49,263,675; the Commercial Exchange Bank of New
York with deposits of $22,241,854; the Chelsea Exchange Bank with deposits of $20,758,598; the
County Trust Co. with deposits of $20,323,600; the
Bronx County Trust Co. with deposits of $19,437,268; the American Union Bank with deposits of $12,801,812; the Bronx Borough Bank with deposits of
$11,889,667, and the Cosmopolitan Bank with deposits of $11,312,900. The Federal Reserve statement in turn includes figures from the half a dozen
National banks not members of the Clearing House
to which we have alluded above.
All this merely goes to show that the Clearing
House institutions constitute a distinct body of institutions. It also goes to show that the Federal
Reserve member bank returns do not answer as a
substitute for the information which it was the custom of the Clearing House to furnish, and furthermore, that the Clearing House returns were far
from being "useless" as claimed in the explanation
issued from the Clearing House. The simple truth
of the matter is that the two separate statements—
that of the Clearing House and that of the Federal
Reserve Board—supplemented and complemented
each other, besides which, each had a value peculiarly its own. In the circumstances no impartial and
well informed student of affairs can fail to reach
the conclusion that the Clearing House made a grave
and very regrettable mistake when in very precipitate fashion it abandoned its old-time policy of
compiling and publishing its invaluable weekly returns.
And this conclusion finds further and most emphatic confirmation when we proceed a step further
in our inquiry and discover that aside from the fact
that the Federal Reserve member bank return does,
not cover anywhere near the same banking institutions as the former Clearing House return, the Federal Reserve statement has never attempted to show
what was always the most valuable feature of the
Clearing House statement, namely, the actual reserve position of the banks and trustcompaniesrepresented in its statement, that is, whether the reserves
are in excess or below legal requirements and the
amount of such excess or deficiency. What is more,
not only is there no attempt to compute this reserve
position in the Federal Reserve statement, but, what
is most important of all, the statement does not cantain the material for calculating the reserve. It
shows the net demand deposits and the time deposits, and it also shows the reserve balances which the
3178
FINANCIAL CHRONICLE
member banks have on deposit with the Federal Reserve Bank and which constitute the only legal reserve for member banks under the Federal Reserve
Act. To the casual observer, it might seem that given
these items, it would be an easy matter to make
calculations going to show whether reserves are in
excess of requirements or whether the reserve position has become impaired and a deficit exists.
The calculation could indeed be readily made if
the whole of the deposits was subject to the same reserve requirements. But that does not happen to
be the case. New York City is a Central Reserve
City and the law requires a reserve of 13% against
demand deposits in a central reserve city. But the
46 reporting member banks of New York City embraced in the weekly Federal Reserve statement include half a dozen banks which are not subject to the
13% requirement, but being located outside of Manhattan Island (in Brooklyn, &c.), are deemed subject to the reserve requirement of the ordinary reserve city banks, which is only 10%. Five of the six
banks are Brooklyn banks and the 10% requirement is therefore applicable in their case, while one
of the six outside banks comes under the designation of a country bank where the reserve requirement for net demand deposits is only 7%. Owing to
these varying reserve requirements against different parts of the grand total of the deposits of the
Federal Reserve member banks, it is wholly Out of
the question to calculate the exact reserve position
of the member banks from the figures in the weekly
Fed. Reserve statement. The Clearing House return,
on the other hand, invariably showed the reserve
position, it being carefully computed down to
the last dollar—again refuting the contention
that the Clearing House statement had become
"useless."
It will not be denied that it is more than ordinarily important in a period like the present to know
whether the Clearing House banks are showing
large deficits below reserve requirements or are
holding reserves well above requirements. But 'exactly this knowledge is denied through the abolition of the old form of Clearing House return. A
.deficit means that through excessive loaning, reserves have become impaired, while excess reserves
indicate that loaning for speculative or other purposes is being kept well in hand. Up to the time
of the abandonment of the weekly returns, deficits
in the reserve requirements of the Clearing House
banks had come with growing frequency and there
are many who believe that these recurring deficits
prompted the action of the Clearing House in abandoning the returns, the purpose being of course not
to give prominence to the deficit. On the 13 Saturdays from the last Saturday in December to March
24 inclusive (on which latter day the Clearing House
statement in its old form appeared for the last
time), it happened no less than eight times that the
Clearing House banks showed impaired reserves,
often in very large amounts, the deficiency on Saturday, Dec. 31, having been $51,651,040, and that for
[VoL. 126.
Jan. 7 $62,374,630, as appears by the following tabulaistatement.
RESERVE POSITION OF THE CLEARING HOUSE BANKS.
Dec. 31 1927
Deficit $5,534,690
Deficit $51,651,040 Feb. 18 1928
Surplus 28,258,800
Jan. 7 1928
Deficit 62.374.630 Feb. 25 1928
Surplus 1,004,130
Jan. 14 1928
Deficit 30,707,640 Mar. 3 1928
Jan. 21 1928
Deficit 8,021,830
Deficit 15.455,500 Mar. 10 1928
Surplus 45,308,160
Jan. 28 1928
Surplus 6,428,520 Mar. 17 1928
Surplus 19,084.040
Feb. 4 1928
Deficit 20,283,840 Mar.24 1928
Feb. 11 1928
Deffc14 18,100,510
Apparently another heavy deficit was in prospect for Saturday, March 31, when the Clearing
House authorities so summarily decided to cut out
knowledge on that point for the future. It is undoubtedly true that the member banks of the Reserve can very readily correct an impaired reserve
position, by recourse to additional borrowing at the
Reserve banks, but that does not diminish the importance of having knowledge on that point—that
is, knowing whether in addition to the extensive
borrowing already being done, necessity exists for
still further borrowing. This essential knowledge
is now denied by the action of the Clearing House in
withholding the figures.
With reference to the action of the Philadelphia
Clearing House in also withholding information regarding the reserve position of its members, that is
important only because it shows the influence of bad
example and the effect may spread in other directions. The Philadelphia Clearing House does not
go quite as far as the New York Clearing House did.
Unlike the latter, it continues to show the loans and
discounts, the amount of reserve with legal depositories and also with the Federal Reserve Bank, besides the cash in vault, but it does omit showing
that one essential requirement, without which the
true reserve position cannot be determined, namely
the amount of the reserve required. The action in its
case is as inexcusable as is that of the New York
Clearing House.
The Financial Situation.
While there has been no change of very great moment in the general situation the present week, the
developments have on the whole been favorable
rather than the reverse. Stock Exchange speculation has been more subdued, and, as a result
of the extensive liquidation that has been going
on in the stock market during the past two
weeks, brokers' loans in this week's return of the
Federal Reserve Bank show a substantial reduction for the first time in eleven weeks, leaving the
total, however, still the largest on record in all time
with the single exception of that for previous week
(May 16). The performances in Congress are neither
edifying nor reassuring, but there is comfort in the
thought that the national legislative body has about
reached the end of its session and that adjournment
is at hand. Great satisfaction is also to be derived
from the courageous action of President Coolidge in
vetoing the McNary-Haugen farm relief bill, which
in its operation could not have failed to work to the
detriment of the entire community, not excepting
the farmers, and might easily have involved disastrous consequences. Satisfaction over the President's course in vetoing the measure is further increased by the knowledge that there is no chance
that the veto can be overridden, as unfortunately has
happened in the case of some other of the Presiden-
MAY 26 1928.1
FINANCIAL CHRONICLE
3179
tial vetoes of the last ten days, more particularly the erately smaller than in the corresponding period of
bill providing for further salary increases to certain either of the two years preceding. A notable inpostal employees and another Post Office bill ap- stance of the kind is found in the loading of reveparently equally devoid of merit as appears from the nue freight on the railroads of the United States.
The American Railway Association has the present
objections urged against it by the President.
The trade outlook remains the same as in other re- week given out the figures for the week ended May
cent weeks, with little evidence of special activity 12, and it appears from these that the loading of
outside of the automobile industry and the steel revenue freight for that week reached the milliontrade which latter has been profiting from the auto- car mark for the first time so far this year, total
mobile revival. Unfortunately, too, as it happens, loadings having aggregated 1,001,983 cars. This
the inquiry is
the steel trade shows signs of slackening, and prices looks encouraging enough, but when
that
even at the
appears
it
of a number of steel products have been displaying pushed a step further,
below
that for
cars
27,441
total
is
growing weakness. The "Iron Age" of this city in figure given the
cars beand
27,765
in
1927
week
corresponding
its account the present week of the state of the the
Perhaps
ago.
years
two
week
same
the
for
steel trade, reports that steel mill operations are low that
tapering, but says the gradual character of the de- the most encouraging sign of all is that coal produccline is testimony to the large volume of steel pass- tion appears to be slowly creeping up, notwithstanding directly into consumption and yet feels com- ing that labor troubles still abound in several of the
pelled to add that with prices no longer buoyant, States. The output is now closely approaching
consumers are ordering sparingly, and, in some in- that of the same week a year ago. Of course, tha4
stances, are delaying purchases in the hope of buy- is not saying much, bearing in mind that compariing more advantageously later on. This spirit of son is with the period in 1927 when there was a
caution, we are told, is reflected not only in new general suspension of mining at the unionized bibusiness, but in a reduction in the average size of tuminous coal mines throughout the country, by reaindividual specifications; nevertheless, shipping or- son of the strike then prevailing, and when the outders in the aggregate, it is stated, show surprisingly put as a result was heavily reduced. But at least
the comparisons are a great improvement over those
little change.
for
the month of April, when there was a further
As this trade authority is so obviously inclined
heavy
falling off in the quantity of coal produced
following
roseate
hue,
the
to give its utterances a
further comment must be regarded as quite signifi- the present year, on top of the big loss lasf year.
That soft coal production is now closely approachcant: "Steel output in Greater Pittsburgh has
dipped to 75%, compared with a recent rate of 80% ing that of a year ago appears from the figures of
of capacity. At Chicago, where production has been the United States Bureau of Mines so far reported
holding at 95%, there has been virtually no curtail- for the different weeks of May. For the week endment to date. Average operations of the U. S. Steel ing May 5, according to these reports, the total proCorporation's subsidiaries are now placed at 85%, duction of bituminous coal the present year was
a decline of three or four points in the past week." 8,174,000 tons against 8,185,000 in the correspondIn another part of the "Iron Age," in a business an- ing week of last year and for the week ending May
alysis and forecast by Dr. Lewis H. Haney, director 12 it was 8,382,000 tons against 8,402,000 tons, while
of the New York University Bureau of Business Re- for the week ending May 19 the output is estimated
search, the situation is portrayed in these words: at about 8,200,000 tons against 8,273,000 tons. With
"The most notable general development in the iron coal tonnage slowly increasing from the very low
and steel industry is the negative one that the in- levels recently reached, returns of railroad earndustry is not gaining in activity or prosperity. ings will also perhaps soon be getting better. Some
Prices are rather weak. If industries in general of the roads are already showing improved compariwere expanding and prosperity were on the increase, sons in the returns of earnings just coming to hand
the upward trend would probably be reflected in for the month of April, several of which have been
growing activity in iron and steel and in strong received the present week. In the spring wheat secprices for these products. The absence of this con- tions of the Northwest all the roads are giving a
dition is an unfavorable indication."
good account of themselves, as previously pointed
The Cleveland "Trade Review" in its weekly out- out, because of the splendid harvest of spring wheat
line of the steel trade speaks in the same qualified gathered in that territory last season, thereby inway, saying: "Only the automotive industry of the creasing the purchasing power of the population in
four major outlets for iron and steel is a noteworthy the favored sections besides adding to the tonnage
buyer at this time, but the aggregate demand from in grain.
small and moderate-size users is sufficient to temper the seasonal second quarter let-down into a
It is pleasing to be able to vary the monotony of
gentle diminuendo. Unless the railroads, the oil having to report increases in brokers' loans to a new
country and the building industry develop a spurt, high peak, week after week, in now finding it posit will be to small consumers that the markets will sible to say that the present week, for a change,
look for their support. But this may prove no mean there has been no further increase, but a substanreliance, judging from current demand for bars, tial reduction. The falling off for the week ending
which are the most ubiquitous of all finished steel Wednesday night has been $45,953,000. Obviously,
products, and the chief purchase of small metal the contraction is to be ascribed to the extensive
working plants. At present, the volume of bar busi- liquidation which occurred on the Stock Exchange
ness is probably equal to that in other heavy finished last week and the early part of the present week.
The decrease, however, is only a snail step in the
lines combined."
A quiet state of trade is also indicated by vari- right direction and it still leaves the total of these
ous other trade statistics. In some cases these show loans the largest on record excepting only that of
an expanding volume of business, yet leaving it mod- the previous week. Considering the extent of the
3180
FINANCIAL CHRONICLE
[VoL. 126.
antecedent expansion, this week's contraction will the effect? Solely and simply that to make good
be of little consequence unless it shall be followed the loss the member banks have enlarged their own
by other decreases until the amount once more gets borrowings at the Reserve institutions, not alone to
back to a figure which shall no longer be unduly the amount of the loss, but to a considerable addilarge. The drop during the week has been from a tional extent, as is proved by the fact that the disgrand total of $4,502,044,000 to $4,456,091,000 and count holdings of the twelve Reserve banks have
the magnitude of both totals is apparent. At $4,- risen in the sum of no less than $228,793,000. The
456,091,000 May 23 1928 comparison is with only final result, therefore, is that there is fully $50,000,$2,964,650,000 on May 25 1927, showing an expan- 000 more of Reserve credit in use than when the opsion during the twelve months of $1,491,441,000. eration began, and this, too, in face of the advance in
Increases are found, as we have many times pointed the rediscount rates of the Reserve Banks, showing
out, under all the different categories. The loans how inefficacious and useless the whole performance
made by the 46 reporting member banks in New has been. To present the situation in the particuYork City on their own account have run up during lar mentioned at a glance, we repeat the following
the year from $932,161,000 to $1,247,360,000; those tabular statement, given by us two weeks ago, but
made for account of out-of-town banks have ad- with the later figures inserted:
vanced from $1,172,589,000 to $1,607,186,000, while BILL AND SECURITY HOLDINGS OF FEDERAL RESERVE BANKS
May 23.
April 11.
Inc. or Dec.
those made "for account of others" have expanded Bills discounted—
$
$
Secured
by
U.
S.
°Wig_
574,589,000
391.357,000
Inc.
183,232,000
most of all, having risen from $859,900,000 to $1,Other bills discounted__ - 272,883,000 227,322,000 Inc. 45,561.000
601,545,000.
Total bills discounted— 847,472,000 618,679,000 Inc. 228,793,000
The figures given relate, of course, to the member Bills bought in open mkt_ 330,562,000 361,595,000 Dec. 31,033,000
U. S. Govt. securities—
banks. In their own statement, the Reserve Banks Bonds
56,528,000
56,609,000 Dec.
81,000
notes
85,160,000 151.763,000 Dec. 66.603,000
show the same characteristics and features as in all Treasury
Certifs. of indebtedness
88,793,000 169,644,000 Dec. 80.851,000
other recent weeks. The Reserve institutions are
Total U. S. Govt.sec.. 230,481.000 378,016,000 Dec. 147,535,000
990,000
990,000
still disposing of their holdings of U. S. Government Othersecurities
Total bills & securitiee.1,409,505,000 1,359.280,000 Inc. 50,225,000
securities and latterly have also been reducing their
It will be seen from the foregoing that total bill
holdings of bankers' acceptances, without, however,
diminishing to any substantial extent the amount of and security holdings May 23 were $1,409,505,000
Reserve credit in use, the result being simply to in- against only $1,359,280,000 on April 11 when the
duce the member banks to extend their own borrow- operation began. What happened, as just explained,
ings at the Reserve Banks. This direct borrowing has been that while the twelve Reserve Banks partby the member banks is reflected in the discount ed with $147,535,000 of Government bonds and with
holdings of the twelve Reserve institutions. Dur- $31,033,000 of acceptances, making $178,568,000 toing the week these discount holdings further in- gether, the member banks obtained from these same
creased in amount of $40,060,000, and the total of Reserve Banks $228,793,000 additional on discount
these discounts now stands at $847,472,000, as applications. But that is only part of the story.
against only $428,620,000 on May 25 1927, having No less than $183,232,000 of the additional disthus nearly doubled during the year.
counts were obtained on the security of U. S. GovBecause of the $40,060,000 of new borrowing by ernment obligations. That is evident from the fact
the member banks, the sale of $31,839,000 more of that the total of discounts secured by U. S. obliga,
Government securities by the Reserve Banks and tions is now $574,589,000 as against only $391,357,the reduction during the week by $16,730,000 of 000 on April 11.
their open market purchases of acceptances had the
Thus we have another demonstration of how the
effect of reducing total bill and security holdings by thing works in a circle. The Reserve institutions
no more than $8,509,000, the total of the bill and se- sell $147,535,000 of their holdings of U. S. Governcurity holdings now standing at $1,409,505,000 ment securities to the banks, the latter pay over the
against $1,418,014,000 May 16, and comparing with money and then proceed to get it back by pledging
only $988,510,000 on May 25 1927. Deposits of the these same Government bonds with the same Retwelve Reserve institutions (representing mainly serve Banks and obtaining loans upon them. It only
the reserve accounts of the member banks) fell dur- remains to add that the additional borrowing on
ing the week from $2,434,153,000 to $2,416,535,000 U. S. obligations occurred mainly at the Federal
and the amount of Federal Reserve notes in circu- Reserve Bank of New York. The New York Reserve
lation was reduced from $1,583,095,000 to $1,579,- institution now holds no less than $250,948,000 of
383,000, but gold holdings also further declined from discounts secured by U. S. obligations, as against
only $143,804,000 on April 11, an increase in the
$2,640,809,000 to $2,633,292,000.
been
have
engaged
in
interval
of $107,144,000. If we went back to March
Banks
Reserve
the
Since
to
year
regulate
21
we
present
would
find that at that time the New York
the
attempt
second
their
Reserve credit by the sale of U. S. Government se- Reserve institution held no more than $55,250,000
curities, say on about April 11, seeking thereby to of discounts on the pledge of Government collateral.
reduce the amount of funds at command of the mar- In other words, during these two months $195,698,ket, they have disposed of no less than $147,535,000 000 additional has been borrowed at the New York
of U. S. Government Bonds, these holdings now Federal Reserve district on the pledge of Govern(May 23), being down to $230,481,000 against $378,- ment collateral. That tells the tale of what has
016,000 on April 11. In the same interval they have been going on.
also reduced their holdings of acceptances bought
As to the course of the stock market, liquidation
in the open market by $31,033,000, these holdings
with
against
$361,595,000
extensive declines in prices continued the order
now being only $330,562,000 as
$31,033,000
to
of
the
the
$147,day early in the week, but after Tuesday the
on April 11. Adding this
535,000 of Government bonds sold, $178,568,000 al- pressure ceased, and since then considerable recovtogether has been withdrawn. But what has been eries have occurred and the market has regained tone
MAY 26 1928.]
FINANCIAL CHRONICLE
3181
and strength. The further drop on Monday and week as already indicated. Curtiss Aeroplane, which
Tuesday, following the collapse of last week, was of closed at 145 on Friday of last week, tumbled to
1
2on May 22, then recovered to 14434, yesterday
large extent and the market was exceedingly weak 118/
on both days. The aeroplane stocks were particu- closing at 1373%. Wright Aeronautical, which
1
2, dropped to
larly hard hit and plunged downward with great closed on Friday of last week at 202/
to
192
on
May 24 and
recovered
May
22,
167
on
violence, though as a matter of fact the entire
Radio
Corp.
186
/
1
2
.
also went
at
yesterday
closed
list was under pressure and declined in drastic
closing
After
performances.
specticular
through
fashion.
on
touched
172%
it
last
week,
Friday
of
on
at
203
market
opened
on
the
Monday,
after
having
When
1
2 yesterday, and
been closed on Saturday in order to enable broker- May 22, then moved up to 204/
age houses to catch up on arrears of work, it was closed at 203. The railroad shares were weak with
confronted by a number of adverse circumstances. the rest of the list on Monday and Tuesday, but also
Call money on the Stock Exchange commanded 6% shared in the upward reaction. N. Y. Central was
and indeed ruled at that figure all week. In ad- as low as 178 on May 22, but closed yesterday at
/8 the previous Friday; Southern
dition the action of the Interstate Commerce Com- 180% against 1857
1
2 against 126 the
yesterday
at 125/
mission in ruling against the acquisition of the Erie Pacific closed
Pacific
at
1363
% against 136;
Texas
&
week;
RR. by the Chesapeake & Ohio, though permitting previons
4; Rock Island
1
2 against 631/
taking over of Pere Marquette, had a depressing Missouri Pacific at 63/
/
4 against 116%; Great Northern at 103
effect on the stocks of all the roads affected. Chesa- at 1173
/
4;
/
8 against 2003
/8;Union Pacific at 2013
peake & Ohio stock sold down to 198 as against 205 against 1047
4; Bait. & Ohio at 114%
on Friday; Pere Marquette sold down to 140 from Wabash at 9014 against 941/
1
2 against 108;
146 on Friday, while Erie common dropped to 56/
8; Lehigh Valley at 107/
/
1
2 against 1157
from 583
/
4 on Friday; Nickel Plate fell to 138 from Reading at 1101/
4 against 114½; Lackawanna at
/
4; N. Y., Chicago & St. Louis at
140/
1
2; for the time being the whole railroad share 140% against 1443
4 against 140½; Chesapeake & Ohio at 195'/
78
list suffered as a consequence. On Tuesday the news 1351/
against
213;
214
/
1
2
at
that the U. S. Supreme Court had granted a stay of against 205; Canadian Pacific
1
4, and Atchison
the Federal Statutory Court's decree increasing the Del. & Hudson at 210 against 212/
fare on the subway and elevated lines of the Inter- at 191/
193
/
1
2
.
1
2 against
borough Rapid Transit Co. in this city from five
Among the motor stocks General Motors suffered
1
2 on May
cents to seven cents, caused a sharp break in Inter- severely in the early break, touching 185/
4 the
4 against 1933
borough stock, which opened at 46 Tuesday morning 22, but closed yesterday 1911/
against 521/
4 at the close Monday afternoon, and previous Friday. The motor stocks generally have
tumbled still lower to 39/
1
2; it also had a depressing been among the firmest in the list, Chrysler closed
effect on all the other city traction shares.
yesterday at 79 against 79 the week before; StudeOn Wednesday, however, the pressure on the mar- baker closed at 80/
1
2against 77%; Hudson Motor at
ket ceased, the weakly held stocks having evidently 88/
1
2 against 88%; Hupp at 56 against 571/4; Mack
been shaken out, besides which considerable covering Trucks at 90 against 89½; Nash at 92 against 92%,
of short commitments occurred. The recovery made and Packard at 75% against 76%. In the case of the
further progress on Thursday and, as a matter of ribber shares Goodyear Tire & Rubber closed at
fact, the rebound was so sudden and decided as to 521/
/8 against 96;
4 against 52/
1
2, and the pref. at 977
cause surprise and also to inspire confidence in the Goodrich corn. closed at 86/
1
2against 90; U. S. Rubunderlying strength of the market. On Friday much ber corn. closed at 421/
4 against 43%, and the pref.
was made of the fact that the Federal Reserve state- at 79 against 767
/8.
ment, issued after the close of business on Thursday,
The steel stocks were on the whole well mainshowed a considerable reduction in the total of tained. United States steel closed at 1467
/8 against
brokers' loans, and this infused new vim and vigor 145% the previous Friday; Bethlehem Steel at 62/
1
4
into the market, leading to a further upward move- against 621/
2, Republic Iron & Steel at 6014 against
ment in prices.
58/
1
2, Crucible Steel at 85/
1
2 against 86 and Ludlum
Business has been on a reduced scale through the Steel at 65 against 641/
2. The copper stocks exweek, aggregate sales on Monday having been 2,671,- celled all others in strength on the advance in the
540 shares, on Tuesday 3,095,160 shares, on Wednes- price of the metal and the most of them reached
day 2,812,210 shares, on Thursday 3,047,150 shares, the highest figure of the year. American Smeltand on Friday 3,113,000 shares. The sales on the ing & Refining closed yesterday at 1937
/
8 against
4
New York Curb Market have also been on a reduced 1921/
8 the previous Friday; Anaconda at 723
1
4,
1
2 against 69/
scale,'being 970,755 shares on Monday,825,554 shares against 691
/
4, Cerro de Pasco at 74/
2, Kenneon Tuesday, 938,958 shares on Wednesday, 809,525 Calumet & Arizona at 1063
4 against 1011/
on Thursday, and 944,475 shares on Friday. As on cott at 94 against 907
78
/8,and Green Cananea at 125'/
previous occasions the volume of trading diminished, against 121%. Among the Oil stocks Houston Oil
whenever the market displayed weakness, besides closed yesterday at 149/
1
2 against 143 the previous
which the fact that the Exchange closed each day at week; Standard Oil of N. J. at 461/
1
4,
8 against 45/
2 o'clock instead of at 3 o'clock undoubtedly served Marland Oil at 39/
1
2 against 39, Pan American &
to curtail dealings. The early closing hour occa- Transport at 48 against 48, and Mid-Continental Pesioned so much dissatisfaction that the Governing troleum at 321/
8 against 31.
Committee of the Exchange on Wednesday announced that beginning with Monday next, full day
The close inter-relations existing between the
sessions would be resumed, the Exchange remaining American and the European securities markets was
open until 3 o'clock as of old.
vividly illustrated the early part of the past week
Owing to the sharp recoveries, the net changes by sympathetic movements at almost all centers for the week are in most cases comparatively small. with the further collapse at New York. On the LonThe aeroplane stocks covered a wide range during the don Stock Exchange the trading of the first two
3182
FINANCIAL CHRONICLE
[VoL. 126.
treaty which provided for the sweeping renunciation of all war as an instrument of national policy.
The French Government a week later submitted a
second draft treaty, embodying the same principles,
but with reservations regarding French commitments under previous treaties and under the Covenant of the League of Nations. The first reply to
the Kellogg proposal was received from Germany
on April 27 and was quickly seen to follow the
French lead as to reservations even though the principle of a universal peace treaty received hearty endorsement. Italy's reply was received May 5, Premier Mussolini also expressing lively sympathy with
the Kellogg plan, but suggesting a conference of
jurists to provide a treaty text suitable to all Governments.
The British reply of May 19 was looked upon very
generally as an attempt to reconcile the American
and French draft treaties. Sir Austen Chamberlain, the Foreign Secretary, welcomed the American
suggestion on behalf of his government and promised that the movement would be supported to the
utmost. "After making a careful study of the text
contained in your Excellency's note and 9f the
amended text suggested in the French note," Sir
Austen continued, "his Majesty's Government feel
confident that there is no serious divergence between the effect of these two drafts. This impression is confirmed by a study of the text of the speech
by the Secretary of State of the United States which
he delivered before the American Society of International Law on April 28." Referring to Article 1
of the American draft treaty, the note says the British Government "do not think that its terms exclude
action which a State may be forced to take in self
defense." As regards the text of the second and
final article in the American draft treaty, no appreciable difference was found between the American
and French proposals.
The reservations suggested in the French draft
treaty were next taken up in the British reply. The
French suggestion that an article be added to the
treaty providing that violation of the treaty by one
of the parties should release the remainder from
their obligations under the treaty toward that party,
appeared to receive the support of the British Government. "His Majesty's Government," the note
said,"are not satisfied that if the treaty stood alone,
the addition of some such provision would not be
necessary." An amendment to the treaty was not
considered indispensable, as "means can no doubt
be found without difficulty of placing this understanding on record in some appropriate manner so
that it may have equal value with the terms of the
treaty itself." The point was nevertheless insisted
Negotiations between the United States Govern- upon as one of importance "because of its bearing
ment and the other great powers looking toward on the treaty engagements by which his Majesty's
the conclusion of an anti-war treaty reached a fur- Government are already bound." The machinery of
ther stage last Saturday when the British reply to the Covenant of the League of Nations and of the
the American note of April 13 was received in Wash- Treaty of Locarno was described in the note as goington. Identical notes were addressed by Wash- ing somewhat further than a renunciation of war
ington at the time to the Governments of Great as a policy in that they provide certain sanctions
Britain, Germany, Italy and Japan. These notes for a breach of their obligations. "A clash," the
communicated all exchanges that had taken place note continued, "might thus conceivably arise bebetween France and the United States on the basis tween existing treaties and the proposed pact, unof the suggestion originally made by Foreign Min- less it is understood the obligations of the new enister Briand of France fat a "Pact of Perpetual gagement will cease to operate in respect of a party
Friendship" between the two Republics. Secretary which breaks its pledges and adopts hostile measKellogg invited the consideration and the adherence ures against one of its co-contractants." The note
of the four powers and also communicated a draft I specifically declared, moreover, that British respect
sessions revealed pronounced weakness in the recent speculative favorites. Gramophone, artificial
silk, tobacco, chemical and cable shares all were
quoted at lower levels. Oil stocks also were weak,
while home rails continued flat. The gilt edged
security section held firm, as it had not participated
in the broad upward sweep of the past two months.
A better tone was evident in Wednesday's trading.
concurrent with the recovery here, with American
buying again reputed a strong influence. Improved
advices from New York gave impetus to the upward
movement the rest of the week with the speculative
favorites once more leading the march.
The movement of prices on the Paris Bourse followed roughly the same course, but with the decline
of Monday and Tuesday a good deal sharper. Selling orders from professional bears swamped the
market and the smaller holders soon followed suit,
leading to drastic recessions in practically every
section. The heaviness of the London market and
the uncertainty at New York were given as the reasons for the downward movement. Agitation was
again apparent Wednesday, but calm and quiet trading finally set in with the volume of shares dealt
in greatly diminished. The Berlin Boerse acted
independently last Monday, showing strength because of the favorable results of last Sunday's elections. Sympathetic response was merely delayed,
however, as prices began to drop Tuesday, the downward turn culminating in losses of thirty to forty
points in a few speculative issues. A firmer tendency set in Wednesday with much American buying reported.
There was much conjecture during the past week
at all European centers regarding the basic causes
of the simultaneous moves in the important American and European securities markets. It was pointed out in some quarters that it merely marked a return to the pre-war status when widespread speculation for a rise in stocks was apt to be common
to all markets. These concurrent movements were
interrupted by the war and in the last decade the
stock exchanges at London, in Central Europe, the
Latin nations and America have all gone their separate ways. It is significant that in the present resumption of parallel movements, every market ascribes much of its buying to orders from other centers. London finds New York and Berlin of great
influence. Paris cables make continuous mention
of heavy orders from New York and London. Berlin apparently receives support both from America
and from Eastern Europe. Even the smallest markets on the Continent find traces of the ubiquitous
influence of the vast speculation at New York.
MAY 26 1928.]
FINANCIAL CHRONICLE
3183
for the obligations arising out of the Covenant of on the form their reservations would take, but that
the League of Nations and out of the Locarno trea- what they wished to establish was the force of those
ties is fundamental. "Our position in this regard," reservations. It is not difficult to see how the
Sir Austen said, "is identical with that of the Ger- French regard Sir Austen Chamberlain's positions
man Government as indicated in their note of April as much nearer M. Briand's position than to Mr.
Kellogg's." The British reference to the necessity of
27."
no infringement of their right to protect
allowing
own,
its
of
a
with
reservation
The note continued
was taken in Paris as relating to
districts
certain
the
be
into
not
need
written
apparently
which
and Singapore, or generally
Egypt
Suez,
Gibraltar,
understood.
be
clearly
nevertheless
must
but
treaty,
This concerned the language of Article I in the speaking, to Britain's route to the East.
The intimations contained in Sir Austen's note
American draft treaty which simply provided for
the renunciation of war as an instrument of na- regarding the Dominion Governments and the Govtional policy. "There are certain regions of the ernment of India were promptly heeded by Secreworld," the note said, "of which the welfare and in- tary of State Kellogg. Invitations to adhere to the
tegrity constitute a special and vital interest for proposed multilateral treaty renouncing war as an
our peace and safety. His Majesty's Government instrument of national policy were dispatched from
have been at pains to make it clear in the past that Washington to the Governments of Australia, Caninterference with these regions cannot be suffered. ada, the Irish Free State, New Zealand, South
Their protection against attack is to the British Em- Africa and India on May 21. An announcement by
pire a measure of self-defense. It must be clearly the State Department on the same day explained
understood that his Majesty's Government in Great that these Governments had been invited to become
Britain accept the new treaty upon the distinct un- original parties to the treaty. The notes, as pubderstanding that it does not prejudice their free- lished yesterday, contained a statement of what has
dom of action in this respect. The Government of occurred, an explanation that Sir Austen recomthe United States has comparable interests, any mended that the Governments which make up the
disregard of which by a foreign power they have British 'Commonwealth be approached, and an indeclared that they would regard as an unfriendly vitation to edhere to the compact. Washington disact. His Majesty's Government believe, therefore, patches made it clear at the same time that the
that in defining their position they are expressing State Department will be in a position to determine
the intention and meaning of the United States its next step when all the replies have been received.
Government."
A triumph for the moderate Socialist Party of
Sir Austen pointed out further that the proposed
treaty from its very nature is not one that concerns Germany was recorded in the national Parliamenhis Majesty's Government in Great Britain alone, tary elections held in the Reich last Sunday. Inbut is one in which the joint and simultineous par- ternally the victory of Germany's strongest polititicipation of the Dominions and the Government of cal party means the passing of the old coalition
India would be requisite. All the Governments were cabinet for one dominated by the Socialists and
said to be in cordial agreement with the general headed by their national leader, Otto Braun, Preprinciple of the proposed treaty. Confidence was mier of Prussia. And externally the result was
expressed in the note, therefore, "that on receipt viewed as indicating an alliance of the political parof the invitation to participate in the conclusion of ties favorable to the Dawes Plan, the Locarno sesuch a treaty they, no less than his Majesty's Gov- curity treaties, the Kellogg anti-war compact and
ernment in Great Britain, will be prepared to accept the League of Nations. The ballots cast in the
the invitation." In summing up, Sir Austen de- election numbered approximately 30,500,000, and
clared that the British Government finds nothing in of these the Socialists received some 9,000,000, or
existing commitments which prevents its hearty co- 1,200,000 more than in the last Parliamentary elecoperation in this new movement for strengthening tion four years ago. This means a gain of 21 memthe foundations of peace. Great Britain, he con- bers in the new National Legislature, bringing the
cluded, "will gladly co-operate in the conclusion total for the Socialists up to 152 members. The Naof such a pact as is proposed and is ready to engage tionalist Party suffered a corresponding defeat, the
with the interested Governments in the negotiations number of their representatives being cut from
111 to 73. The new Reichstag will have 493 memwhich are necessary for that purpose."
Official circles in Washington, according to a dis- bers and will be dominated by a coalition of the
patch of last Sunday to the New York "Herald Trib- Socialists, the Populist Party, the Catholic Centre
une," considered the British point of view "so ac- and the Democratic Party. These four will hold 283
ceptable that complete agreement between the seats. Dr. Gustav Stresemann, as the leader of the
United States and Great Britain would be possible." People's Party, will be retained as Foreign Minister
So far as Great Britain is concerned, it was believed and will be in an even stronger position to continue
likely that the treaty itself would stand in the sim- his policy of general European conciliation and ecople form originally drawn up by Secretary Kellogg. nomic integration than before the elections.
The point of greatest significance in the German
"The British requirements, as mentioned in Sir Austen's note," the dispatch added, "can all be met, it elections was considered by observers to be the sharp
is believed, by an exchange of diplomatic notes or rebuke administered by the German people to the
mention in the preamble of the treaty or by a for- reactionary element as embodied in the Nationalist
mal statement of intentions, to be deposited when Party. The Ifonarchistic leanings of the Nationalthe treaty is signed." The diplomats attached to ists entered into the result to some extent, but the
the Quai d'Orsay likewise appeared to be entirely chief element was said to be the general dissatisfacsatisfied with the British reply. A Paris dispatch tion with the high costs of living resulting from the
of May 20 to the New York "Times" explained that tariffs and taxation imposed by the Nationalist Govthe French "take the position that they never stood ernment on behalf of the big agrarian intefests.
3184
FINANCIAL CHRONICLE
[VoL. 126.
"Harsh treatment was accorded the factions com- posed the entry of women into politics, supported
posing the Marx Cabinet," a Berlin dispatch of May the measure, "not," he said, "with enthusiasm, but
21 to the New York "Times" said, "merely because in a spirit of resolute resignation." He declared
the bulk of the electorate considered them guilty of that he was still an unrepentant anti-feminist, but
having permitted the Nationalists to enact duties that he recognized the futility of dying for lost
on foodstuffs and other imposts that bore heavily causes. To force an election on the issue, he conon the masses of the people." The Nationalist at- tinued, would mean a massacre of the Lords, so,
tacks on the Locarno pacts and the League of Na- having once started on the slippery slope of the
tions also contributed somewhat to their downfall, female franchise, they might as well slide to the
it was declared, as "German Democracy obviously is bottom with dignity instead of ridicule. Other
safer in the hands of Dr. Otto Braun than in those Lords approved the bill, according to a London disof Count Westarp and his Junkers." The new patch to the New York "Times," and said they looked
Reichstag will meet for the first time between June forward to seeing Peeresses in the House of Lords.
10 and June 15, and the members of the present
Marx Cabinet will retain their portfolios until the
Some degree of political uncertainty still prevails
day before the assemblage convenes. Besides the in France despite the sweeping victory gained by
Socialists and the Nationalists, the more important Premier Raymond Poincare at the elections held on
parties in the National Legislature will be the Cath- the last two Sundays in April. The very fact that
olic Centrists with 62 votes, the Communists with 54 the balloting was such a personal triumph for the
votes, the People's Party with 44 votes, the Demo- French Premier and Finance Minister appears to
crats with 25 votes and the Economic Party with 23 have caused the situation which makes this possible,
votes.
as many Deputies were elected who had no distinct
Germany's swing away from Nationalism and the party affiliations. Efforts were made late last week
strengthening of the Left parties was looked upon in to unite these Deputies in a strong Central Party
Paris as indicating a new and even stronger devel- which could command proper representation on the
opment of the policy of peace and co-operation which Grand Commissions of the Chamber and act as a
began four years ago. "During these years since unit in supporting the Government. The efforts
Locarno," a Paris dispatch of Monday to the New failed, however, and some of the newly elected DepuYork "Times" said,"an obstacle to further reconcili- ties began to align themselves with the Radical Soation has always been the opposition of the German cialists, who may thus obtain greater power in the
Nationalists and French suspicion of their strength Government than would otherwise have been the
and their hold on the Government of that Republic. case. All attempts to form a "Poincare bloc" were
To that suspicion the elections must give some given up last Tuesday, when the three moderate parcheck." It was considered certain in Paris, the dis- ties which lie between the Radical Socialists on the
patch added, that the only Coalition Government Left and the Nationalists on the right decided that
which can be formed must incline toward the Left they would each continue to retain their individual
on a solid Republican basis and with a program of independence and act according to their sympathies,
international co-operation and adherence to the leanings and interests. This decision, a Paris disLeague of Nations. Official circles in the French patch to the New York Times said, will ease the
capital admitted that the situation will lead almost Cabinet situation by permitting a continuance of
at once to the question of the Rhineland occupation. the present Ministers at their posts, since the Center
Dr. Stresemann can now, it was said, come honestly parties will be unable to demand more representaand frankly to Paris and ask that some recognition tion. It also means, however, that when other than
of German loyalty to Locarno be accorded, "such, purely financial matters arise there is likely to be at
for instance, as the evacuation of the Coblenz zone." times a very serious split in the majority which PreThe situation in Germany is now held in Paris to mier Poincare at present enjoys. •
be such as the French have always demanded if
Increased interest is being taken, meanwhile, in
they were to be assured of the stability of the Re- the actual date of franc stabilization, which is now
publican regime there and the really pacific desire apparently imminent. This process will merely
of the German people. It will be extremely difficult legitimize the existing state of affairs, as it is known
to refuse confidence to a Government founded on that M. Poincare intends to submit stabilization at
such a majority, and, though there is certain to be the present exchange rate to the Chamber of Deputconsiderable bargaining, it Is considered even to-day ties. Financial Paris expects the reversion to the
inevitable that the next step toward an increase in gold standard to take place next July, according to
cordiality in the relations between the two nations press reports. The announcement will have an important effect on the Bank of France, as that instimust be made by France.
tution will no longer be compelled to purchase for"Votes for flappers" were approved by the British eign exchange bills in order to maintain the rate,
House of Lords Tuesday by a majority of 79, indi- but will be able to allow the natural play of gold
cating that women in Great Britain hereafter will imports and exports to effect any necessary adjustreceive the franchise at the age of 21 instead of 30, ments. Ample preparations have been made by the
as heretofore. Thirty-five peers voted against the Bank for the formal announcement, these taking
measure, which caused some surprise, inasmuch as the form chiefly of huge gold imports, some $200,Prime Minister Stanley Baldwin had asserted that 000,000 being drawn from America alone in the past
the Conservative Government was pledged in honor three months. The recent French Government
to pass the bill. The opposition to the bill was based 10,000,000,000 franc bond flotation will also aid the
chiefly upon the plea that women would control the Bank of France. The French Treasury also has
nation in the event of its passage, since there are attained a position of exceptional strength, due
about two million more women in Great Britain than chiefly to the increasing Government revenues. The
men. Lord Birkenhead, who has consistently op- receipts for April were 3,459 million francs, corn-
MAY 26 1928.]
FINANCIAL CHRONICLE
3185
pared with 2,687 millions in March and 2,967 mil- tenance of peace and order in Manchuria, and are
prepared to do everything in order to prevent the
lions in April last year.
occurrence of any such state of affairs as may disDevelopments in China the past week have again turb that peace and order. Under these circumpresented a two-sided picture, with the internecine stances, should disturbances develop further in the
struggle between the Nanking and Peking factions direction of Peking and Tientsin and the situation
proceeding on the one hand, while on the other hand become so menacing as to threaten peace and order
foreign Governments again gave every indication of in Manchuria, the Japanese Government possibly
a determination to protect the lives and property of will be constrained to take appropriate and effective
their nationals. Diplomatic representations were steps for the maintenance of peace and order in
made in great profusion, both between the two Gov- Manchuria."
The notes were interpreted in Shanghai as a virernments of China and between these two Governments on the one side and the Governments of Japan tual declaration by Japan of her intention to estaband the United States on the other. Japan, more- lish a protectorate over Manchuria. One practical
over, reinforced its unequivocal statements of inten- and immediate effect of the declaration was seen to
tions with additional movements of troops to the be the deprivation of Marshal Chang Tso-lin's libChinese province of Manchuria, where Japanese in- erty of action in the case of a possible retreat into
Manchuria. In this sense the Japanese action was
terests are very extensive.
favorable to the Nationalists. Subsethe
considered
The armies of
Kuomintang, or Nanking Nationalist Party, continued their advance toward quent advices from Tokio to the New York "Times"
Peking, the old capital, where Marshal Chang indicated that Japan had advised Chang Tso-lin to
Tso-lin holds out with his Fengtien cohorts. Under avoid battle and withdraw peacefully into Manthe triple leadership of General Chiang Kai-shek, the churia. This he declined to do, expressing, instead,
• Nationalist commander who captured the native city every intention of holding on to Peking even though
of Shanghai in March last year, Marshal Feng Yu- it meant risking a decisive battle. The Japanese
hsiang, whose allegiance is always uncertain and meanwhile concentrated their Manchurian garrison
who is derisively called the "Christian General," at the railway line of the border of Manchuria near
and of General Yen Hsi-shan, Governor of Shansi Mukden, and sent additional troops from Shantung
Province, the Southerners were reported to be sweep- Province and from Japan. Resentment over these
ing toward Peking at an astonishing rate early this actions was general among the Chinese people, both
week. Military reports from the interior of China in the South and the North, and boycotts were estabare, however, extremely uncertain, and the North- lished in many places.
erners were able to claim three victories over the
The United States Government, through Minister
Southern forces as the week advanced. The South- John Van A. MacMurray, notified both the Chinese
erners were beaten Thursday, the reports said, in factions on May 18 that lawless, uncontrolled elethe vicinity of the city of Hokien, about 100 miles ments or armed forces cannot be permitted to come
south of Peking. The fall of Peking and its seaport into dangerous contact with American nationals in
Tientsin, was thus made far more uncertain than the foreign areas of Peking and Tientsin. The reghad been thought previously.
ular policy of the United States of advising its naPeace overtures were made repeatedly by the tionals to withdraw from the zones of actual hostiliManchurian overlord, Chang Tso-lin. He attempted ties had been followed, Mr. MacMurray pointed out,
late last week to gain at least the benevolent neu- and several thousands of Americans had accordingly
frailly of the Shansi Governor, Yen Hsi-shan, but concentrated at Tientsin. The American GovernGeneral Yen replied that only the retreat of Chang ment had stationed defensive forces at that place, he
into Manchuria could insure peace. An official continued, and these were charged with the responsistatement was issued by the Foreign Office of the bility of protecting its citizens. Accordingly, he
Peking Government Monday, laying the blame for requested "that only trusted troops and commandthe difficulties on the Southerners and particularly ers of unquestioned loyalty to China's welfare may
on Feng Yu-hsiang. "Peace cannot reign," the state- be employed in the event of any operations in the
ment said, "until the Southerners are broad-minded neighborhood of Tientsin." Mr. MacMurray, it was
enough to give up the idea that they are the patented explained in Washington, acted on his own initiative
nationalists who are characterized by every con- in sending the two memorandums to the Chinese
ceivable, high-sounding adjective that the most up-to- Governments, but full approval of his steps was
date political vocabulary can boast." As an indica- expressed by Secretary of State Kellogg. It was
tion that Chang's peace efforts were continuing, a subsequently revealed in Washington that the
Peking dispatch of Wednesday to the New York United States Government had also made a separate
"Times" cited "the secret departure from Peking of demand for the arrest and execution of the murderer
Sun Su-wei, Civil Governor of Chili Province, for who shot Dr. Walter F. Seymour at Tsining, China,
Shanghai to negotiate with the Nanking Nationalist on April 25. A reply to Mr. MacMurray's note was
regime for cessation of hostilities."
made by the Peking Foreign Minister, Dr. Lo WenThe most important developments in the Chinese kan, on May 19. In it the United States was assured
imbroglio were, however, the several declarations by that so far as the Northern Government was con.
the Tokio and Washington Governments respecting cerned, there would be "no act at variance with inthe protection of their nationals. The first of these ternational usage." The Nanking Foreign Minister,
was addressed by Japan to both the Peking and the General Hwang-fu, resigned his office Tuesday,
Nanking Governments in China. The factional dis- leaving this and other diplomatic difficulties to his
turbances, the notes said, "threaten to spread to the successor.
Peking and Tientsin districts, and it is feared that
Manchuria may be affected. The Japanese GovernA Cabinet crisis was precipitated in Greece, Tuesutmost
importance
to the main- day, by the sudden and dramatic re-entry into public
ment attaches the
3186
FINANCIAL -CHRONICLE
life of the former Liberal Premier, Eleutherios Venizelos, who had been in retirement for the past six
years. A bitter factional feud has been dormant at
Athens for the pa,st few months, according to a dispatch of Tuesday to the New York "Times," but has
again flared out with the announcement of the return of M. Venizelos. In a declaration issued to the
public, the former Premier made it clear that he felt
himself compelled to recall his previous statement of
retirement. "With complete frankness," the dispatch added, "he served notice on both opponents
and supporters that he would in the future assume
the leadership of the Liberal Party." This was
viewed by M. Kafandaris, the Finance Minister and
nominal leader of the Liberals, as a direct challenge,
and as a test of strength he declared his intention
of resigning both the chairmanship of the party and
his portfolio. Premier Zaimis first refused the
resignation, but was compelled to change his mind
when five other ministers followed M. Kafandaris's
lead. The Premier thereafter tendered his own
resignation, and with it that of the whole Government to President Konduriotis. M. Venizelos informed the Associated Press Thursday that nothing
is further from his desire than to form a Cabinet.
"If there is no other solution, however, he said he
would undertake the task." Some apprehension was
expressed in London over the return of M. Venizelos,
whose name, the London "Times" said, "is a symbol
of glory to some, hatred to others, and discord to
alt"
A situation of considerable uncertainty has arisen
between the Central American republics of Honduras
and Guatemala, as a result of the failure of a mixed
commission to settle the ancient boundary dispute
between the two countries. Patriotic demonstrations were general throughout Honduras last week,
and the agitation, directed very pointedly against
Guatemala, was believed by some observers to contain elements of danger. Guatemalan citizens were
leaving the country in appreciable numbers, owing
to the nationalist propaganda and the "defense"
societies that were being organized in every town.
The mixed commission met under the chairmanship
of Roy T. Davis, United States Minister to Costa
Rica, in whose hands as mediator the final decision
now rests, but according to a Tegucigalpa dispatch
to the New York "Herald-Tribune," both sides maintained an attitude that no concessions could be made.
Mr. Davis sailed from Colon May 13 bound for a
Washington conference with the State Department
in a further study of questions involved in the
Guatemala-Honduras boundary dispute.
There have been no changes this week in discount
rates by any of the central banks of Europe. Rates
continue at,7% in Germany;6% in Italy and Austria;
532% in Norway;5% in Denmark and Madrid;432%
in London, Belgium and Holland;4% in Sweden, and
PA% in France and Switzerland. In London open
market discounts are 3 13-16@3 15-16 for short and
4% for long bills, against 3%@3 15-16% for short
and 4% for long on Friday of last week. Money on
call in London was 4% on Wednesday, but down to
2%% yesterday. At Paris, open market discounts
continue at 2%%, and in Switzerland at 3 5-16%.
[VoL. 126.
in notes in circulation of 030,000, leaving the addition to the reserve of gold and notes in the banking department only £10,000. The ratio of reserve to liabilities again rose, this time from 40.91% to 41.27%.
This time last year the ratio was only 30.85%.
Public deposits decreased £6,069,000, while other
deposits gained £5,141,000. Loans on Government
securities increased £5,000 but loans on other securities declined £921,000. Gold holdings now total
£162,187,487, against £152,540,040 in 1927 and
£149,007,391 in 1926. Notes in circulation aggregate
£135,064,000, which compares .with £135,858,775
and £140,581,930 in 1927 and 1926, respectively.
The Banks official discount rate remains at 43/2%.
Below we furnish comparisons of the various items of
the Bank of England report for five years.
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1928.
1927.
'1928.
1925.
1924.
May 23.
May 25.
may 26.
May 27.
May 28.
Circulation
b135.064.000
Public deposits
13,095,000
100,517,000
Other deposits
Gov't securities
29,582,000
Other securities
54,925,000
Reserve notes & coin 46,872,000
Coln and builion__8162,187,482
Proportion of reserve
to liabilities
41.27%
Bank rate
4'4%
135.858,775
19,759,090
98,356,360
48,518,920
50,919,442
36.431,265
152,540,040
140,681,930
20,220,399
103,041,828
41,035,328
71,816.648
28,175,461
149,007,391
30.85%
44%
22.87%
5%
148,182,610 125,731,915
15,778,615 15,490,091
106,715,868 104,551,347
37,036,733 42,332,467
75,041,609 73.302,269
28,257,669 22,202,887
156,690,279 128,184,802
23%
5%
1834%
4%
a Includes, beginning with April 29 1925, £27,000,000 gold coin and bullion
Previously held as security for currency notes issued and which was transferred to the
Bank of England on the British Government's decision to return to the gold standard.
b Beginning with the statement for April 29 1925 includes £27,000.000 of Bank
of England notes Issued in return for the same amount of gold coin and bullion
bald up to that time in redemption account of currency note Issue.
The Bank of France in its weekly return showed a
decrease in note circulation of 723,933,000 francs,
bringing the total of that item down to 58,995,408,500
francs, the lowest figure since the week of March 28th.
For the corresponding week last year note circulation
totaled 51,800,565,060 francs and the year previous
52,734,999,940 francs. There were no changes in
the gold item this week. The State repaid the Bank
100,000,000 francs of its indebtedness reducing that
item to 22,600,000,000 francs as against 26,600,000,000 francs and 35,900,000,000 francs, respectively
in 1927 and 1926. The other items in the Bank of
France's report for this week all showed increases as
follows: Silver, 1,000 francs, bills discounted 385,980,000 francs, trade advances 71,461,000 francs,
treasury deposits 121,117,000 francs, general deposits,
2,053,601,000 francs and divers assets 1,174,332,000
francs. Below we furnish a comparison of the
various items of the Bank's return for three years
past:
BANK OF FRANCE'S
Changes
for Week
Gold Holdings—Francs.
In France
Unchanged
Abroad-available._ Unchanged
Abroad—non-avail Unchanged
COMPARATIVE STATEMENT.
Status as o
May 23 1928. May 25 1927. May 26 1926,
Francs.
Francs.
Francs,
3,678,542.068 3,682,507,441
462,771,478
462,771,4781 1,864,320,907
1,401,549,429 1,401,549,4291 .
Total
Unchanged
5,542,862,075 5,546,828,350 5,548,485,533
Elver
Inc.
1,000
342,945,668
344,426,262
334.934,708
Billsdiscounted._ _Inc. 385,980,000 2,071,680,304 2,192,928,051 4,583,689.162
Trade advances_ Inc. 71,461,000 1,847,571,335 1,594,019,500 2,271,992,157
Note circulation Dec. 723,933,000 58.995,408,500 51,800.565,060 52,734,999,940
Treasury deposits.Ino. 121,117,000
180,158,320
158.945,251
30,231,309
General deposits—Inc. 2053601,000 10,612,213,229 10,423,991,824 3,196,711,645
Adv.to State
Dec. 100,000,000 22,600,000,000 26,600,000,000 35,900,000,000
Divers assets
Inc. 1174332,000 29,657,191,687 19,017,526,524 3,599,289,184
The Bank of Germany in its report for the second
week of May reports a decrease in note circulation
of 251,829,000 marks, which reduced total note
circulation to 3,987,108,000 marks, compared with
the totals of 3,351,699,000 marks the corresponding
date last year and 2,783,203,000 marks in 1926. On
The Bank of England in its statement the present the other hand other daily maturing obligations
Week shows a gain in gold of 040,652 and an increase expanded 2,992,000 marks and other liabilities
MAY 26 1928.]
FINANCIAL CHRONICLE
3187
18,674,000 marks. On the asset side gold and bullion asked for 120 days and 4%% bid and 4h% asked
fell off 98,000 marks while deposits abroad remained for 150 and 180 days. Open market rates likewise
unchanged. Reserve in foreign currencies gained remain unchanged as follows:
SPOT DELIVERY.
15,371,000 marks. Bills of Exchange and checks
—180Days— —150Days— —120Days—
declined 295,130,000 marks. Silver and other coin
Asked.
Bid.
Bid.
Asked.
Bid.
Asked.
434
434
434
434
434
434
increased 15,110,000 marks, notes on other banks Prime eligible bills
—90 Days— —60 Days— —30 Days—
Asked.
5,749,000 marks, advances 20,495,000 marks and
Bid.
Bid.
Asked.
Bid.
Asked.
4
4
43-4
434
434
4
other assets, 8,325,000 marks. Below we furnish a Prime eligible billsFOR DELIVERY
WITHIN THIRTY DAYS.
comparison of the various items of the Bank's return Eligible member banks
434 bid
Eligible non-member banks
454 bid
for three years past: •
The posted rate of the Acceptance Council for call
REICHSBANK'S COMPARATIVE STATEMENT.
Changes for
loans against acceptances has again remained unWeek.
May 15 1928. May 14 1927. May 15 1926
Assets—
Reichnnarks. Retchsmarks. Retchsmarks. Retchsmarks. changed at 432% throughout the week.
Gold and bullion
Dec.
98,000 2,040,796,000 1,849,146.000 1,491,641,000
Of which depos.abr'd- Unchanged
85,626.000 101,249,000 260,435.000
Res've in for'n cum _ _Inc. 15,371.000 212,913,000 106,172,000 272,288,000
Bills ofexch. de checks.Dec. 295,130,000 1,986,536,000 1,905.426,000 1,248,982,000
Silver and other coin_ _ Inc. 15,110,000
82.039,000 105,563,000
96.169,000
Notes on oth.Ger.bks_Inc
5,749,000
23,383,000
28.054,000
17,207,000
Advances
Inc. 20,495,000
59.741,000
9,341.000
16,209,000
Investments
Unchanged
94,004,000
92,860,000
89,022.000
Other assets
Inc. 8,325,000 566,406,000 507,856,000 797.267,000
Liabilities—
Notes in circulation_ _Dec. 251,829,000 3,987,108.000 3.351.699.000 2,783,203,000
0th. daily mat. oblig_Ine. 2,902,000 463,541,000. 625.136,000 671,655,000
Other Uabilities
Inc. 18,674.000 208.191.000 258,423.000 218,033,000
A decidedly firm tone again prevailed in the New
York money market the past week, both the demand
and time loan departments reflecting the underlying
strength. Trades in demand funds on the New York
Stock Exchange were made at the undeviating rate
of 6%, with some overflow, however, into the street
market on Monday, Wednesday and Thursday, where
trades at 53
4% were reported. Withdrawals were
nominal early in the week, but some $20,000,000 of
loans were called in by the banks Thursday. Time
lpans were quoted at 532% for all maturities, revealing greater tightness than in the closing sessions of
the previous week. Brokers loans against stock and
bond collateral finally interrupted their upward march
in the weekly statement of the Federal Reserve Bank
on Thursday. Eleven successive increases had been
shown in these tabulations, some of them of huge
proportions. The total increase in these eleven weeks
was more than $750,000,000. As against this, the
figures issued Thursday revealed a decline for the
week ended Wednesday of $45,953,000. Gold continued to flow outward during the week, the total
exports being computed at $9,442,000.
Dealing in detail with the rates from day to day,
there is nothing to say except to repeat what has been
said above, namely, that the call loan rate on the
Stock Exchange on each and every day of the week
ruled at 6%, the remark applying to renewals as
well as to original loans. For time loans rates have
further advanced. On Monday the range was still
5ht@5%, but on Tuesday the only rate quoted
was 5
and this has been the figure the rest of the
week. Commercial paper has felt the effect of- last
week's rise in the rediscount rates of the Federal Reserve Bank of New York from 4% to 432%. and for
four to six months names of choice character the quotation is now 41A@4%%, with only very exceptional
paper selling at the lower figure. For names less
well known the quotation now is 43@5%. For
4%.
New England mill paper the rate is 43
Rates for banks' and bankers' acceptances have
remained unchanged at the higher figures put into
effect last week. The posted rates of the Acceptance
Council for prime bankers' acceptances eligible for
purchase by the Federal Reserve banks continue at
43/8% bid and 4% asked for bills running 30 days
and also for 60 and 90 days, 43j% bid and 43i%
The Federal Reserve Board announced on May 24
that the discount rate of the Federal Reserve Bank
of Cleveland had been increased from 4% to 41A%,
effective May 25. The following is the schedule of
rates now in effect for the various classes of paper at
the different Reserve banks:
DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
Federal Reserve Bank.
Rate in Effect
on May 25.
Boston
434
New York434
Philadelphia
4
Cleveland
436
434
Richmond
Atlanta
4
Chicago
434
434
St. Louis
434
Minneapolis
4
Kansas City
Dallas
434
Ran PrAnnhann
4
Date
Established.
Apr. 20 1928
May 18 1928
May 17 1928
May 25 1928
Apr. 24 1928
Feb. 11 1928
Apr. 20 1928
Apr. 23 1928
Apr. 25 1928
Feb. 10 1928
May 7 1928
Feb. 4 1928
Previous
Rate.
4
4
4
4
6
335
4
4
4
334
4
314
Sterling exchange has been slightly more irregular
this week, but shows on the average very little change
from a week ago. During the dull periods in the
market the rate was inclined to go a slight fraction
lower, but on every sign of real transactions there
has been a return to higher quotations. The range
this week has been from 4.87 25-32 to 4.88 for bankers
sight, compared with a range of 4.87 11-16 to 4.88
last week. The range for cable transfers has been
from 4.88 3-16 to 4.88 8, compared with 4.88 1-16
to 4.883
/i a week ago. While the firm money rates
which have prevailed in New York since the beginfling of the month have attracted some funds from
London and other centers, neither this influence
nor the increase in the• Federal Reserve rediscount
rate has curtailed in the least the flow of American
money to Europe. Short-term month rates in
Europe averaged slightly higher than a money ago,
but a more important factor in sustaining the flow.of
American funds is the apparently attractive prices
for European securities. The foreign exchange market has been reduced in effect to five days a week
owing to the Saturday closings of the New York
Stock Exchange, as international dealings in securities
have been largely responsible for the increase in
foreign exchange transactions the present year,
especially since January. From Monday to Friday
each week there is about an equal opposite flow of
funds between New York and European centers
attracted by the security markets, which should
exert an equalizing influence on exchange quotations,
yet sterling and the European foreign exchange
quotations continue at a premium over the dollar
owing to the large accumulation of dollar exchange
in most European centers. Sterling and other exchanges in most foreign markets are relatively
scarce, while dollar exchange is superlatively plentiful. There is some talk of a higher rediscount rate in
London, but it is hardly to be expected that the Bank
of England rate will be raised unless sterling exchange
3188
FINANCIAL CHRONICLE
begins to reflect the high money rates here. Since
sterling has not reflected these rates so far, it is
hardly probable that it will do so now, particularly
since New York bankers are expecting a lower level
of money rates here not later than June 15. The
present rates for sterling exchange are gratifying to
British banking interests, as the premium on sterling
over the dollar is large enough to insure that foreign
central banks wishing to increase their gold holdings
will fill their requirements in New York rather than in
London.
The British note issues amalgamation plan involves
no change in the traditional working of the British
currency system. The Bank of England will continue to issue bank notes up to the amount representing gold coin and bullion for the time being in
the issue department. In addition, the principle of
a fixed fiduciary issue is retained with the amount
limited to £260,000,000, with the exception named
below. The fiduciary issue will be covered by
Government securities and silver, the latter up to
an amount of £5,500,000. Extra elasticity is provided by a clause authorizing the Bank of England
to increase the fiduciary circulation up to any specified amount, subject to Treasury consent. Such
consent is limited to a period of six months, but may
be renewed from time to time up to a maximum of
two years. Any further renewal is subject to consent of Parliament. London press dispatches state
that the new bill when it becomes law may result in
a change in the daily bullion returns of the Bank of
England. As is well known, the practice adopted
by the Bank of England is to disclose the origin and
destination of sovereign shipments, but to give no
information as to the origin and destination of gold
bar shipments. The explanation of this difference
in policy is that the Bank is under legal obligations
to sell bars and may ask no questions with regard
to them, whereas it is not obliged to pay out sovereigns, so that it is entitled to inquire the designation of the shipments. By virtue of the "currency
and bank notes bill," the Bank of England will be
in a position to demand information with respect to
any gold held in England in excess of £10,000,
whether bars or sovereigns. Thus the British bankers assume that once the bill becomes law the bullion
returns will publish the origin and destination of
all gold shipments, whether sovereigns or bar gold.
Probably the most interesting development pertaining to sterling exchange this week was the shipment of $5,000,000 in gold to England on the Mauretania by the National City Bank. This shipment is
not mentioned in this week's official return made
by the New York Federal Reserve Bank. Announcement of the shipment was not accompanied by any
explanation as to its origin. This is the second large
shipment of gold to London made by this bank in
the past six months. The first shipment, which was
made in December, totaled $7,500,000. General
opinion is that the shipment was a special transaction, probably made on foreign order, in which
case it would represent a purchase by some European
central bank. Whether this is an isolated transaction or the beg:nning of an important movement
is a subject of conjecture. This week the Bank of
England shows an increase in gold holdings of £240,652. On Tuesday the Bank of England sold £5,000
in gold bars. On Wednesday the bank bought
£10,000 in Peruvian gold coin and exported £9,000
in sovereigns to India. On Thursday the bank
[Vol. 126.
bought £28,000 in gold bars. On Friday the bank
bought £27,000 in bar gold and shipped £5,000 to
Holland. At the Port of New York the gold movement for the week May 17-May 23 inclusive, as reported by the Federal Reserve Bank of New York,
consisted of imports of $47,000 from Latin America
and exports of $9,442,000, of which $7,066,000 was
shipped to France, $2,250,000 to Argentina and
$126,000 to miscellaneous places. There was no
Canadian movement of gold either to or from New
York. Canadian exchange continues at a discount,
ranging this week from 5-64 to 9-64 of 1%. Montreal
funds ruled toward the close of the week at a discount of Wi of 1%. At present levels it is believed
that small shipments of gold may be made from Canada to New York.
Referring to day-to-day rates sterling on Saturday
developed firmness after a weak opening. Bankers
sight was 4.87 13-16(4)4.87 15-16, and cable transfers
4.883i@4.88 5-16. On Monday sterling was in demand. Bankers sight was 4.87 13-16@4.88, and
cable transfers 4.88 7-32@4.88 11-32. On Tuesday
the market reacted slightly. The range was 4.87 13-16
@4.87 15-16 for bankers sight and 4.88 3-16@
4.88 5-16 for cable transfers. On Wednesday the
market was quiet but steady. The range was
4.87 25-32@4.87 29-32 for bankers sight and 4.88 3-16
@4.88 9-32 for cable transfers. On Thursday the
market was irregular, but gained in firmness toward
the close. Bankers sight was 4.87 13-16@4.88, and
cable transfers 4.883.@4.88 11-32. On Friday the
market developed further strength, the range was
4.87 13-16@4.88 for bankers sight, and 4.88 9-32@
4.88% for cable transfers. Closing quotations yesterday were 4.88 for demand, and 4.883
% for cable
transfers. Commercial sight bills finished at 4.877
4,
60-day bills at 4.8431, 90-day bills at 4.823
%, documents for payment (60 days) at 4.843 and 7-day
grain bills at 4.873/
8. Cotton and grain for payment
closed at 4.87%.
The Continental exchanges are firm, with transactions in rather fair volume. Interest continues to
centre on the French franc, as banking circles eagerly
await the French program for the return to gold
and every week witness a large shipment of gold
from New York to the Bank of France from earmarked holdings of the French central institution
with the New York Federal Reserve Bank. The
"Wall Street Journal" said, in a recent issue: "Question of French balances in London is hardly worrying
British financial authorities, though the subject has
aroused much comment. Bank of France has upward of $1,500,000,000 in foreign balances in various
markets, chiefly London and New York. It cannot,
however, withdraw those balances, except in gold,
at will. That fact is lost sight of in most of the discussions of the possible effect of sudden withdrawals.
They can be withdrawn only as they were accumulated, gradually and in the natural course of events.
They were accumulated because capital was flowing
toward France, and the Bank of France did not
want the franc to rise. The Bank of France can
get rid of them only when capital begins moving
from France, when foreign investors and speculators
begin to withdraw from the French market, or when
French investors turn their attention abroad, as they
did before the war." London advices state that
well-informed bankers there believe that Premier
Poincare has decided to restore the full gold standard
MAY 261928.]
(
FINANCIAL CHRONICLE
3189
s. Exchange on Czechoslovakia finished at
of the franc. After the legal stabilization of the 143/
con2.9615,
against 2.9615; on Bucharest at 0.61%,
France
will
be
Bank
of
franc the notes of the
3 ; on Poland at 11.20, against 11.20,
vertible into gold coin. For this purpose large against 0.61%
quantities of gold will be minted to meet any initial and on Finland at 2.52, against 2.52. Greek exdemand which may arise as soon as the notes become change closed at 1.30 for checks and at 1.30% for
convertible. This explains in some measure the cable transfers, against 1.30% and 1.30% a week ago.
heavy French gold takings in New York, which are
The exchanges on the countries neutral during
considerably in excess of the requirements of the
the
war are firm. Holland guilders, Norwegian
Bank of France for the purpose of adopting a gold
krone,
and exchange on Stockholm have been noticebullion standard such as has existed in England
demand. Norwegian krone are higher than
in
ably
since 1925. It is believed that the rate at which
the franc will be legally stabilized will be 124 to the at any time, owing to the return to the gold standard.
pound, so that the reform will not involve any The other neutral exchanges participate in this
change in the exchange rates or in the price level. firmness, largely as a seasonal matter. European
A Paris dispatch to Dow, Jones & Co. on Thursday newspapers confirm that the sharp rise in Spanish
said: "It is reliably reported that Premier Poincare pesetas from 16.59 to 16.90 on May 9 was due to
has decided to postpone legal stabilization of the official Spanish purchases. It has been disclosed,
franc at least until winter, on the ground that he however, that the purchases made at that time were
must ascertain the real sentiment of Chamber of immediately sold, so that the incident did not indiDeputies on the matter, obtain passage of the 1929 cate that the government was initiating an attempt
budget and await price level developments. He to raise the level of exchange. Hence it is undereven refused to commit himself against eventual stood that recent statements of the Spanish Finance
partial revalorization, if progress of events seems Minister that the Government would devote its resources to preventing any speculative manipulation
to make such a step desirable."
Rumanian exchange is a very inactive one in of the currency means only that it will act to prevent
New York at all times. Interest attaches to the any temporary or unjustified movements. Spanish
unit this week owing to the statement that the currency policy has been of a negative character for
French portion of the Rumanian loan will be an- the past few years, despite the fact that Spain is
nounced between June 15 and July 15. A strong the only European former neutral which has not
syndicate of issuing houses has been formed for returned to gold at the pre-war parity of exchange.
the purpose of floating the French issue of Rumanian Greek exchange has been steady though on the
whole inactive. The cabinet upset in Greece this
bonds.
Exchange on Czechoslovakia has been practically week, with the rather obscure political situation,
stabilized for a few years, but interest attaches to was without effect on exchange rates. Greek curthe unit this week, owing to an erroneous cable from rency and financial position are better now than
London on Monday which stated that the Czechol- for many years, and it is thought that only serious
slovakian discount rate had been advanced /
8% political unrest will interfere with recently into 5/%.
3
However, a later dispatch from Prague augurated stabilization plans.
Bankers' sight on Amsterdam finished on Friday
by way of London corrected this error and pointed
out that the Czech bank rate continues unchanged at 40.353/2, against 40.323/ on Friday of last week;
at 5% and the increase reported earlier applied cable transfers at 40.3732, against 40.343/
2, and comonly to private discounts.
mercial sight bills at 40.32, against 40.28. Swiss
German marks continue in demand and well above francs closed at 19.27 for bankers' sight bills and at
3 for cable transfers, in comparison with 19.27
gold parity. The cable transfer rate this week went 19.27%
as high as 23.953, which is so close to the gold and 19.27% a week earlier. Copenhagen checks
export point that traders expect that the Reichsbank finished at 26.83 and cable transfers at 26.84, against
2 and 26.833/2. Checks on Sweden closed at
may possibly resume gold purchases in New York. 26.823/
There is a steady flow of American funds to Berlin 26.83 and cable transfers at 26.84, against 26.82 and
money market and for purposes of investment in 26.83, while checks on Norway finished at 26.79
and cable transfers at 26.80, against 26.78 and 26.79.
German securities and industries.
Italian lire are firm and in demand for reasons Spanish pesetas closed at 16.73 for checks and at 16.74
2 and
stated here previously on several occasions-an for cable transfers, which compares with 16.763/
2 a week earlier.
active flow of money from various centres for in- 16.773/
vestment in Italian securities, and for immigrant
The South American exchanges are dull and
remittances, and tourist supplies.
steady,
although the Argentine paper peso showed
The London check rate on Paris closed at 124.02
weakness this week, ruling about four
comparative
on Friday of this week, against 124.02 on Friday of
points below closing quotations on Friday of last
last week. In New York, sight bills on the French week.
As noted in the discussion of sterling excentre finished at 3.93 9-16, against 3.93 7-16 a
change, a shipment of $2,250,000 in gold was made
week ago; cable transfers at 3.93 13-16, against to
Argentina this week. Argentine paper pesos
3.93 11-16, and commercial sight bills at 3.93X, closed
yesterday at 42.71 for checks, as compared
against 3.933j. Antwerp belgas finished at 13.943/
2 with 42.75
on Friday of last week, and at 42.76
for checks and at 13.953/2 for cable transfers as for cable
transfers,
against 42.80. Brazilian nailreis
against 13.95 and 13.96 on Friday of last week. finished
at 12.04 for checks and at 12.05 for cable
Final quotations for Berlin marks were 23.94 for
transfers, against 12.04 and 12.05. Chilean exchecks and at 23.95 for cable transfers, in comparison
change closed at 12.19 for checks and at 12.20 for
with 23.92 and 23.93 a week earlier. Italian lire cable
transfers, against 12.19 and 12.20, and Peru
7 for bankers' sight bills and at 5.273/i at
closed at 5.264
4.01
for checks and at 4.02 for cable transfers,
for cable transfers, as against 5.269 and 5.27 last
against 4.02 and 4.03.
week. Austrian schillings have not changed from
1,111111.
3190
[VOL. 126.
FINANCIAL CHRONICLE
In the Far Eastern exchanges the noticeable feature
of the week is the sharp rise in the silver units, owing
to the high price of silver. When Chinese exchange
is bought or sold, the transaction is practically
equivalent to a purchase or sale of silver. The London quotation for silver has been ranging this week
283/i © 283'd. Shanghai taels sold on Thursday in
New York as high as $0.704
3 for cable transfers, the
highest price reached since 1926. Of course Hongkong dollars were also higher. The demand for silver
on the part of China for the past few weeks has been
much greater than expected either in New York or
in London. The Indian Government recently availed
itself of the high piice to sell about 10,000,000 silver
rupees as bullion, but there seems to be no limit to
the amount of silver which China can absorb. Usually when the silver exchanges move upward Japanese
'yen react. This was not the case this week, which
ing for so many years showing the shipments and,
receipts of currency to and from the interior.
As the Sub-Treasury was taken over by the Federal Reserve Bank on Dec.6 1920,it is also no longer
possible to show the effect of Government operations
in the Clearing House institutions. The Federal
Reserve Bank of New York was creditor at the Clearing House each day as follows:
DAILY CREDIT BALANCES OF NEW YORK FEDERAL RESERVE BANK
AT CLEARING HOUSE.
Saturday, Monday,
May 19. May 21.
Tuesday, TVednesd'y, Thursday, Friday,
May 22. May 23. May 24. May 25.
$
112,000,000 103,000,000 103.000,000 107,000,000 100,000,000 113,000,000
Aggregate
for Week.
Cr. 643,000,000
Note.-The foregoing heavy credits reflect the huge mass of checks which come
to the New York Reserve bank rom all parts of the country in the operation of
the Federal Reserve System's par collection scheme. These large credit balances,
however, reflect only a part of the Reserve Bank's operations with the Clearing
House institutions, as only the items payable in New York City are represented in
the daily balances. The large volume of checks on institutions located outside of
New York are not accounted for in arriving at these balances, as such checks do
not pass through the Clearing House but are deposited with the Federal Reserve
Bank for collection for the account of the local Clearing House banks.
shows that the yen maintains an essentially strong
The following table indicates the amount of bulposition. It may be assumed quite positively that lion in the principal European banks:
the Japanese banking interests will support the yen
May 24 1928.
May 28. 1927.
against any bear drive. Closing quotations for yen Banks ofSitter.
Total.
I
Gold.
Silver.
Total.
Gold.
46.55©469',
against
46
5-16
checks yesterday were
£
1
£
1
Kong
Hong
closed
at
week;
©46% on Friday of last
England_ 162,187.482
152,540,040
162,187.482152,540.040
France a__ 147,137,683 13.717,826 160.865.509147,300.268 13,760,000161,060,268
51%©523/
2, against 51 11-16©51%; Shanghai at Germany
b 97,758,500 c994,6001 98.753,100 87,367,000,
994,6001 88,361.600
_ _ _ 104.317,000 28.021.00 132,338.000103,883,000 27,954,000131,837.000
1 ; Manila at 49 9-16, Spain_
69©69%, against 67X©67A
51,203,000' 46,138,000 3,983,000 50,121,000
Italy_ _ _ _ _ 51,203,000
Netherl'ds 36,262,000 2.077,000 38,339,0001 34,734,000 2,497,000 37,231,000
against 49 9-16; Singapore at 563/2©56, against Nat.
Belg- 22,033,000 1,244,000 23,277,000 18,236,000, 1,156.000 19,392,000
Switzeriffi. 17,503,000 2,377,000 19,880,0001 18,371,000' 2,862,000 21,233,000
12,329,000
563/2©56%; Bombay at 36%, against 36%, and Sweden_
-- 12,880,000
12,880,000, 12,329.000
762,000 11,468,000
Denmark _ 10.105,
623,
10,728,000i 10.706.000,
8,180.000
Calcutta at 36%, against 36%.
Norway __ 8,175,00
8,175,0001 8,180,000
III
Pursuant to the requirements of Section 522 of
the Tariff Act of 1922, the Federal Reserve Bank is
now certifying daily to the Secretary of the Treasury the buying rate for cable transfers in the different countries of the world. We give below a record for the week just past:
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922,
MAY 19 1928 TO MAY 25 1928, INCLUSIVE.
Country and Moneta
Unit.
Noon Buying Rate for Cable transfers to New York,
Value in United States Money.
I
May 19. May 21. May 22. May 23. May 24. May 25.
1
EUROPEI
$
$
$
$
$
$
Austria, 'whining__ .140635 I .140671 .140663 .140581 .140613 .140660
139580 .139580 .139575 .139560 .139536 .139565
Belgium, belga
007182 I .007182 .007179 .007180 .007184 .007190
Bulgaria, ley
Czechoslovakia, kron 029624 .029626 .029622 .029624 .029623 .029624
268268 .268271 .268250 .268271 .268308 .268325
Denmark, krone
England, pound ster
I.
4.882500 4.882589 4.882528 4.881803 4.882599 4.882883
ling
025170 .025173 .025179 .025171 .025178 .025171
Finland, markka
039366 .039368 .039365 .039363 .030367 .039367
France, Irene
Germany, reichsmark. .239329 .239308 .239354 .239376 .239414 .239438
.013017 .013027 .013025 .013027 .013026 .013025
Greece, drachma
.403492 .403517 .403542 .403481 .403509 .403595
Holland, guilder
.174565 .174588 .174607 .174567 .174619 .174605
Hungary, Pengo
.052688 I .052686 .052682 .052682 .052689 .052692
Italy, lira
267905 .267910 .267888 .267911 .267923 .267918
Norway, krone
112088 i .112103 .112091 .111980 .111755 .112088
Poland, zloty
042245 .042162 .042.522 .042300 .642202 .042385
Portugal, escudo
.006185 .006176 .006189 .006192 .006196
.006182
Rumania,leu
167477 .167321 .167663 .167614 .167432 .167364
Spain. peseta
268302 .268306 .268305 .268296 .268316 .268342
Sweden,krona
.192731 .192741 .192735 .192718 .192701 .192710
Switzerland, franc
.017605 .017602 .017604 .017607 .017605 .017605
Yugoslavia, dinar
ASIAChina688750 .703750 .7012.50 .704583 .714166 .707916
Chefoo tadl
685625 .700000 .697083 .702083 .713750 .706666
Hankow tool
.671607 .688750 .686607 .690178 .698392 .693214
Shanghai tael
.724166 .722083 .725000 .734583 .731666
.709166
Tientsin tool
.513928 .519642 .520125 .521517 .522321 .520089
Hong Kong dollar
Mexican dollar_ _ _ .482750 .493250 .490750 .492750 .500000 .494250
Tientsin or Pely
482083 .489583 .487500 .487916 .498333 .491250
dollar
478750 .486250 .484166 .484583 .495000 .487916
Yuan dollar
366347 .366300 .366257 .366185 .366237 .366225
ffidia, rupee
.461631 .463430 .463927 .463583 .464955
463463
rapan, yen
3ffigapore(S.S.)dollar_ .561250 .561250 .561250 .561250 .561250 .561250
NORTH AMER..999075 .999175 .999062 .999001 .998758 .998654
17anada, dollar
.999093 .999218 .999156 .999218 .999218 .999250
3uba, peso
.485666 .48.5500 .485166 .484750 .484500 .484083
dexico, peso
.996531 .996343 .996093
4ewfoundland, dollar. .996968 .997062 .996718
AMER.SOUTH
.971861 .971967
.971757
.971951
.972081
Lrgentlna, peso (gold) .972139
120300 .120290 .120281 .120345 .120383 .120327
Waal!, milrels
.121831 .121838 .121840
.121740
.121824
.121823
hi1e, peso
1.027773 1.027650 1.028273 1.027353 1.026923 1.026923
7ruguay, peso
.980400 .980400 .980400 .981600 .981600 .981800
1o1ombia. nagn
I
I
J
I
Owing to a marked disinclination on the part of
two or three leading institutions among the New
York Clearing House banks to keep up compiling the
'figures for us we find ourselves obliged to discontinue the publication of the table we have been giv-
Total week 669,561,665 49,054,426718,616,091639,784,308' 53,968,600693,762,908
Prey.week 671,510,518 48,976,632 720.487,150642,656,728 53.645.600696,802.328
a Gold holdings of the Bank of France are exclusive of gold held abroad, amounting
the present year to £74,576,836. b Gold holdings of the Bank of Germany are
exclusive of gold held abroad, the amount of which the present year is £4,281,300.
c As of Oct. 7 1924.
Presidential Vetoes and Public Policy.
The McNary-Haugen farm relief bill which President Coolidge vetoed on Wednesday is the thirteenth
measure passed by the present Congress from which
presidential approval has been withheld. Two of
these bills, as noted in a Washington dispatch to the
New York "Times," are of a private character; two
authorize certain Indian tribes in the State of Washington to file claims against the United States in the
Court of Claims; one authorizes an increase of salaries to the amount of $6,456,000 for postal employees
engaged in night work; one grants allowances to
fourth class postmasters to the amount of $2,865,000
for rent, fuel and light; another provides for the coordination of all the Federal public health activities
and the establishment in the public health service of
a,nurses' corps; three relate to matters of army administration-the purchase of army reserve supplies, army target practice, and the creation of the
rank of bandmaster in the army; another appropriates money for the construction of highways across
public lands in Utah and other States; and'another
authorizes the retirement of disabled emergency officers who served in the World War on the same basis as regular officers of the army and navy, the
estimated annual cost in this case being $2,800,000.
Eight of these measures were vetoed on May 18, and
two more on Tuesday last.
In vetoing the bill authorizing certain allowances
to fourth class postmasters, Mr. Coolidge pointed
out that since fourth class postmasters usually performed their duties in connection with their private
business, their overhead expenses, for which the bill
undertook to provide, were not materially affected
by their duties as postmasters, and that their compensation, in his opinion, was already sufficient. In
MAY 26 1928.]
FINANCIAL CHRONICLE
3191
vetoing the bill providing for additional pay to pos- have to be signed" by the proposed Federal Farm
tal employees engaged in night work, Mr. Coolidge Board "with the 4,400 millers, the 1,200 meat-packreminded Congress that when he approved a bill, in ing plants, the 3,000 or more cotton and woolen
1926,-increasing by some $64,000,000 annually the mills, and the 2,700 canners." "The swarms of inpay of all postal employees, he did so with the un- spectors, auditors, disbursers, accountants and regderstanding that the increase was to benefit night ulatory officers would be let loose throughout the
workers as well as others. "It is well known," he land to enforce the terms of these contracts and to
. eceived by those so employed curb the inevitable attempts at evasion of the equaladded, "that the pay
is in excess of that which is paid for corresponding ization fee." The "arbitrary powers" which the bill
work in private enterprise." The veto of the offi- proposes to confer upon the Board are characterized
cers' retirement bill was based upon the contention by Mr. Coolidge as "almost incredible," but, even so,
that the measure would discriminate unfairly they are less extraordinary than the veto power enagainst enlisted men who entered the army during joyed by the Advisory Councils, who, with the
the World War, and, by practically doubling the Board, "could throw the entire machinery of the
present Tearing allowance, would constitute an un- Government into an attempt to raise or lower dowarranted discrimination in favor of a particular mestic prices at will . . . disrupt the settled
channels of trade and commerce . . . alter at
group of officers.
Far and away the most important of the vetoes, will the cost of living, influence wage levels in all
however, and easily one of the most important docu- lines of industry, and affect conditions of business
ments that Mr. Coolidge has written, is the veto of in every part of the country."
Fourth, the bill offers direct encouragement to
the McNary-Haugen bill. In none of Mr. Coolidge's
and wasteful distribution by middleprofiteering
wealth
messages to Congress-has he employed such a
of the farmers. As was pointed
men
the
at
expense
measure
to
a
denounce
of adjective and phrase
veto of the farm relief bill
Coolidge's
Mr.
in
out
polpublic
to
"Prejudicial
disapproved.
which he
icy and to agriculture," "unconstitutional," "a for- last year, "the only persons who are guaranteed to
midable array of perils," "a maze of ponderously fu- benefit are the exporters, packers, millers, canners,
tile bureaucratic paraphernalia," "a fantastic prom- spinners and other processers," who, with profits
ise of unworkable Governmental price regulation," "definitely assured," would hold contracts under
"cruelly deceptive," "intolerable espionage," "bu- which losses would be fully reimbursed, "no matter
reaucratic tyranny of unprecedented proportions," how unscrupulous, wasteful or inefficient" their op"bureaucracy gone mad," "wholesale profiteering," erations might have been. A fifth objection to the
"a flagrant case of direct, insidious attack upon our bill is its embodiment of the economic fallacy that
whole agricultural and industrial strength," "futile there can be an increase of prices without an insophistries," are some of the expressions which he crease of production. "No farmer will be safe in
applies to the bill or its particular provisions. dim ecting his planting upon his individual judgNever, it is safe to say, has an elaborate and com- ment, for should the result be a stimulation of an
plicated bill been more thoroughly dissected by a increased yield, the Board will be likely to withPresident, its fallacious provisions more clearly ex- draw the support which encouraged the surpluses,
posed, or its destructive bearing upon the economic and allow the prices to collapse under the weight of
and political life of the country more exhaustively that artificially created excess." Finally, the present bill, like its predecessor, "continues the amazand convincingly pointed out.
The criticisms which Mr. Coolidge directs against ing proposal to supply foreign workers with cheaper
the farm relief bill fall mainly under six heads. food than those of the United States, and this at
While the bill carefully avoids any direct allusion the expense of the American farm industry," since
to price-fixing, there can be no doubt, Mr. Coolidge "by the inevitable stimulation of production the bill
declares, of the intention of the bill "to impose upon can only mean an increase of exportable surplus to
the farmer and upon the consumers of farm produce be dumped in the world market."
Accompanying the veto message is an elaborate
a regime of futile, delusive experiments with pricefixing, with indirect Governmental buying and sell- opinion by Attorney General Sargent, in which the
ing, and with a nation-wide system of regulatory po- unconstitutionality of the bill is effectively set forth.
licing, intolerable espionage, and tax collection on "I feel bound to advise you," says Mr. Sargent,"that
a vast scale." In this respect, he continues, the bill the act in question, if approved, would violate the
is worse than the farm relief bill of the preceding Constitution of the United States, in that legislaCongress, which was also vetoed. In the second tion having for its main purpose the control of the
place, the equalization fee, "the kernel of this legis- price of food in the interest of the producer is not
lation," is "a sales tax upon the entire community," authorized by the Constitution; in that if Congress
and "in no sense a mere contribution to be made by possessed the power to do things attempted by this
the producers themselves." To admit such a pro- act it could not delegate it, as it is legislative in
cedure "would certainly involve an extraordinary character; in that it vests in those not officers or
relinquishment of the taxing power on the part of agents of the United States (the reference is to
Congress, because the tax would not only be levied the Advisory Councils of seven members, to be sewithout recourse to legislative authority, but its lected annually by the Board "from lists submitted
proceeds would be expended entirely without the by the co-operative associations and other represenusual safeguards of Congressional control of appro- tative organizations and the Governors and heads
of agricultural departments of States where the
priations."
A third objection is the "bureaucratic tyranny" commodity is produced") the power and duty of parwhich would be fastened upon the farm industry ticipating in appointments to fill places in the serand its distributors by a system under which "thou- vice of the United States; in that it contravenes the
sands of contracts, involving scores of different provisions of the Constitution against the taking of
grades, quantities and varieties of products would property without due process of law."
3192
FINANCIAL CHRONICLE
[VoL. 126.
The political consequences of the vetoes will nat- In the organization of citizens into a body for the
urally be watched with special interest because of transaction of public business when committees are
the near approach of the national nominating con- appointed they are expected to confine themselves
ventions. Two of the vetoed bills, the one providing to the duties provided by the by-laws. In a convenfor certain allowances to fourth class postmasters, tion of any sort, the committee on credentials is not
and the one increasing the pay of postal employees expected to usurp the prerogatives of the Committee
assigned to night work, were promptly passed over on Resolutions and declare the principles to be adthe veto by the House of Representatives on Tues- vocated by the body. And when a whole people or.
day, by immense majorities and without debate, the ganize a government and provide the duties of its
vote on the first of the two bills being 319 to 46, and separate parts or divisions, it is expected that each
on the second 319 to 42. On Wednesday the same will confine itself strictly to the duties laid down in
vetoes were overridden by the Senate, with votes of the Constitution. This is not alone respect for and
63 to 17 for the first bill and 70 to 9 for the second. by the co-ordinate divisions of government, it is a
On Thursday both Houses joined in passing over the wise provision to prevent centralization, usurpation
veto the army officers' retirement bill, the vote in and tyranny. Thus, in our form of representative
the Senate being 66 to 14, and the vote in the House republican government, the Executive does not make
245 to 101. The Senate also passed over the veto, the laws, the Legislative does not enforce the laws,
by a vote of 57 to 22, the bill appropriating $3,500,000 the Judicial does not assume to do either. Each dia year for three years for the construction of roads in vision is separate and distinct. And above and over
certain States. Washington dispatches indicate each and the whole is the sovereign citizen, a free
that there may be less readiness to challenge the veto man, with individual rights not surrendered to the
of the McNary-Haugen bill, and that there is not limited government he has erected to protect him in
much likelihood that a revised farm relief bill, em- the exercise of these indefeasible and inalienable
bodying the suggestions which Mr. Coolidge made rights.
in his veto message, and shorn of the equalization
One of these rights is the liberty to aspire to ocfee and other objectionable features which he con- cupy any office within the gift of the people, prodemned, can be framed and passed with the session vided only he possess the qualifications laid down
so near its end.
by the whole people as a condition of fitness for
Whatever the outcome at Kansas City next month, the incumbency. This is why we say any boy may
we are inclined to think that the vetoes will be found live to become a President of the United States. It
to have strengthened Mr. Coolidge personally, and is an ideal, not a fact. But any man may "run for
that the veto of the farm relief bill will do much to office" and no division of the Government is emclear the air on that subject. Mr. Coolidge's re- powered to say him nay. No man who aspires to a
peated warnings against extravagance in appropria- seat in the United States Senate is required by right,
tions have had, it would seem, little effect upon Con- law or custom to present himself at the White House
gress, and his vetoes of pay increases and other ex- and ask or secure permission to become a candidate
penditures which seemed to him unwarranted will for this high office. And by the same rule no candicommend him to those who feel that a policy of strict date for the Presidency is required to present himeconomy is wise and necessary. It has yet to be self to the Senate and secure a clean bill of health
demonstrated, we think, that the majority of farm- in order to run for that exalted office. As to a deers in the agricultural States of the West and South termination of qualifications, this is left to the peodesire such a measure as the McNary-Haugen bill, ple under the Constitution, and though a Senaand even those to whom the theory of that measure torial body may declare, to a certain extent, the
has appealed most strongly, may well ponder the qualifications of admission to its own membership
trenchant criticisms which Mr. Coolidge has made and though it may confirm appointees in the other
of the bill as a whole and in detail. If the farm re- divisions of government, it cannot prevent, for any
lief which is needed is to be attained only through cause, a duly elected President from taking his seat.
such a disastrous policy as the bill embodies, the It may try an impeachment on the presentation of
latter end of the situation would be vastly worse a true bill, after the fact, but it cannot rightfully
than the first, and the farmers in whose behalf the proscribe an incumbent or aspirant for this office
great agitation has ostensibly been carried on may before the fact.
well thank Mr. Coolidge for his courage in deliverAnd even if it be admitted that a Senate may ining them from their friends. The political issue, vestigate campaign expenses after the fast in relaof course, remains, and it will assuredly be fought tion to its own membership, can it do so in the midst
out in one way or another by the Republicans at of a campaign, and still be true to its own prerogaKansas City, even though the hundred thousand em- tives in relation to the rights of the people. Upon
battled farmers for whom Governor McMullen of what ground then, can it ask aspirants to the PresiNebraska has called do not storm the convention dency to appear before it and submit themselves to
hall. It seems improbable, however, that the Re- an inquisition in the midst of a campaign as to expublicans, who after all want if possible to elect penses incurred? The people elect the President,
their candidate rather than throw the election to not the Senate or the Supreme Court.
Tru, there are laws relating to expenditures in
the Democrats, will insist upon arraying the party
under a standard which Mr. Coolidge's masterly campaigns. But the Senate does not enforce these
laws. And if a man expend a million in the prosecuveto has riddled to rags.
tion of a campaign for the Presidency, the Senate
Campaign Expenses.
has nothing to do with it. Is it to be supposed that
We presume no one will dispute the claim that this high body is required to appoint investigating
there is a certain propriety in all the relations of committees to guide and guard the people in the exlife. An individual who intrudes in other people's ercise of suffrage for fear voters will elect a man
affairs is politely told to "mind his own business." who has spent money to corrupt the electorate to
MAY 26 1928.]
FINANCIAL CHRONICLE
3193
tion of import to the country. The Vice-President;
it is often said, is a mere figurehead. And yet by
the mere death of one man he may become the President of the Republic, clothed with all the power of
his predecessor!
To be thought worthy to succeed to the Presidency is a great honor. Yet so indurated is the custom of conventions in nominating a successor to the
President that the honor and qualifications are
largely ignored, and the office is given to a section
more often than to the man and to political advantage more often than to the good of the country. For
one thing, those who have ambitions to become
President rarely desire the lesser office because few
Vice-Presidents are ever afterward nominated for
the higher office. Candidates do not want to be
shelved. In four or eight years there is a chance to
run again. Pride comes in to compel a refusal by
a current candidate in a campaign. He has made
his appeal direct and does not wish to be thus placated. And this, it must be confessed, is well. For
there is no more reason for placating a defeated
candidate than for mollifying an ignored section.
This throwing away of a very important office
does not speak well for a party or a people. Even if
the Vice-President is only to function as President
of the Senate he should be qualified for the office.
True, there is a "coach," a clerk of the Senate holding office for life, we are informed, to guide him in
intricate parliamentary decisions. But a mere presiding officer of so august a body as the Senate of
the United States should have a back-ground in
keeping with its traditions and dignity. To sail in
on the tail of a political ticket does not argue either.
qualifications or fitness. Not that any man should
look forward to a succession, or that any candidate
ever has done so, but that the people should think
seriously of the possible event and that the man
chosen is not a "figurehead" but an active part of
the Government. He has much power in shaping
legislation, though he is powerless to make rules for
a body that has never yet yielded the right and prerogative to make its own rules.
It must be said, however, that those who have attained the Presidency by succession have proven
themselves in the main worthy. But it is not because they have been preferred by the people. It
would be unfair to say that delegates have not
thought of fitness in selecting candidates, but that
The Vice-Presidency.
they have been hurried in their considerations,
While the people are giving thought to the candi- and have been swerved by passions engendered in
dates for "Ike highest office in the gift of the peo- the "fight" for the Presidential office,—and that
ple," who is giving thought to the Vice-Presidency? the people have really made no recommendations
As far as the newspapers inform us, save in the at all. Writers even now sometimes allude to the
most casual way—no one. There are no out and out possibility or the fatality of coupling a "wet" and
candidates—though we have heard that a former a "dry" on the same ticket. So important is the
Senator from Illinois, a spectacular figure in the office of Vice-President that it should never be alDemocratic party, would like to have the job; and lowed to go by default to section or to man. It
here and there there is one said to be in a receptive should be free from that form of partisan politics
mood. It does not seem to be quite the thing to seek which is guided by opportunism. No man should
this office. And judging by the maneuvering of for- be chosen simply to round out the ticket or to pull
mer conventions, would do little good in any event. into the fold a disgruntled industry or faction.
Fortunate as we have been, the time may come
Once in a while we hear a name coupled with that
when
the
for
the people may suffer through succession.
candidate
Presidency,
leading
but
it
is
of a
in the nature of a personal opinion of what would Congress has provided for the succession after the
constitute a "winning ticket." Few men really want Constitutional requirements have been fulfilled
the place. To sit in the chair and listen to the end- And it may be said in behalf of succession by way
less oratory of the Senate is a very trying occupa- of the Cabinet that the principles and policies of
tion. Not often is there a tie vote giving to the Pres- an administration are guarded by and according
the duly
ident of the Senate the opportunity to decide a ques- to the ability and fidelity and fitness of
secure an office? Does it make the election laws
and then enforce them? Must every man who aspires, who submits himself to the people, obtain a
permit from the Senate? Have the voters no rights,
no duties, in the premises that the Senate is bound
to respect? And on the ground that it seeks information on which to ground laws as to the proper
use of money in Presidential elections is the middle
of a campaign for the nomination the proper time
to make such an investigation? Is there not grave
danger that such interrogatories will prejudice candidates in the eyes of the people and with no opportunity for redress?
It follows that this is an assumed duty not embodied in the Constitution. The Senate of the United
States is not a self-constituted Electoral Commission. It has nothing to do with the conduct of elections. It ought to respect the rights and dignity of
citizens. No considerable body of the people has petitioned it to conduct an investigation into campaign expenses, and if it had the Senate would be
justified in refusing to act. As a matter of fact,
no candidate can prevent his friends from expending money in his behalf. Any man can run for office without permission of the Senate, and the tendency of this assumed duty must be to advance the
Senate as a source for candidates for the Presidency. For it may be presumed that having already passed on the Senatorial qualifications of its
own members it is satisfied with their morals and
methods as aspirants for the higher office, if it may
be called that. The present investigation has failed
to show excessive expenditures by the candidates
themselves, has failed to show corrupt practices in
any degree worthy of notice by campaign managers
or organizations. It has, however, by its mode of
questioning subjected itself to criticism as showing
political bias and lacking dignity.
There is such a thing as a quasi-impeachment before the fact. When we remember that the Senate
cannot originate a bill of impeachment after the
fact, it suggests that a Senatorial inquisition into
campaign expenses in the preliminary stage of an
election is not respectful to the people at large and
must tend to lower the dignity of the greatest lawmaking body on earth. Providing campaign fodder
for political parties is a prerogative of National
Committees!
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FINANCIAL CHRONICLE
[vol.. 126.
elected President. But this only brings into the ancient Turkish citadel which for centuries kept
glaring light of party fitness to rule a country the watch and ward over the plains of Hungary, could,
dangers of haphazard choosing of a Vice-Presi- from a picturesque point of view, claim the attendent. We offer no method for giving more care to tion and the admiration of travellers. Its geographthis selection. There are difficulties not easily ical position was in one way unique, the city being
overcome, since a second man and a lesser office perched on the extreme frontier of the Kingdom,
must wait upon occasion. But the people and the right under the powerful batteries, only a few hunpress, notwithstanding, can and should give at- dred yards distant, of the Austrian town Semlin,
tention to this selection at the same time they are an extraordinary situation which did much to exproviding the party machinery for the Presidency. plain the domination exercised over Serbian
policy
Especially in the selection of a candidate for by the Dual Monarchy. All the Balkan States,
SerVice-President should any exigent party question bia, Bulgaria, and Greece,
were only so many pawns
be avoided. Suppose the candidate for President, on the European chessboard, to
be moved about at
should be a "wet" and his running mate a "dry." will by the Great Powers,
according to the necessiSuppose on this base the campaign is fought out ties of their policies.
The world was accustomed
and won. Suppose then in any attempted modi- to looking upon
them as politically negligible, havfication of the Volstead act there should be a tie ing only
importance as vassal States of the Great
vote and the Vice-President in casting the decid- Powers.
ing vote should vote "dry." The whole thing
Then, in 1912, came a sudden awakening. In that
would be a farce. The party would stultify itself.
year the impossible happened; the Balkan States
The people would have failed in their attempt to
shape the policy and laws. And the same would be buried their enmities and formed a confederation to
true if we reverse the order. And so would be the march against the common enemy, Turkey, and free
result upon any other governmental question. It the Serbs, Bulgarians and Greeks of Macedonia
follows, if these things are true,that the candidate from the ruthless yoke of the Ottoman Empire. The
for Vice-President in all the essentials should be brilliant and victorious campaign of the Balkan
an exact replica of the candidate for President. States came on Europe like a thunder-clap. It is
But he will not be unless the people demand it! no exaggeration to say that Europe, in that year,
discovered Serbia. It found that the little peasant
Belgrade.
By Capt. Gordon Gordon-Smith, attached to the Legation of the Kingdom
of the Serbs, Croats and Slovenes.
I doubt if any city in Europe can to-day record
a post-war progress equal to that achieved by Belgrade. Fifteen short years ago that city was the
capital of the little Kingdom of Serbia, a State
with barely two and a half million inhabitants. A
small characteristically Balkan town,_ with less
than 80,000 inhabitants, with ill-paved streets,
lined with insignificant, two-story houses. Few
people visited it, the rare visitors being travellers
en route for Constantinople, who desired to break
for twenty-four hours the monotony of the three
days' journey from Paris, London and Berlin to
the Turkish capital.
Six small Ministries, each with a score or so em-
ployees, sufficed for the government of the little
Kingdom. Modern hotels were conspicuous by their
absence. A score or two of public vehicles rocked
and rolled over the cobble-stone street, a heritage of
five centuries of Turkish domination. Railways,
with the exception of the trunk line running from
Vienna to Constantinople, were few and far between, while the state of the roads and highways
throughout the country discouraged any effort to
explore the little Kingdom.
And yet, for the students of history, Belgrade was
an interesting city, one which, for centuries, even
from Roman times, had played a great role in Europe. Many remember its name only by that
poetical tour de force, the "Siege of Belgrade,"
quoted in schoolbooks as a triumph of alliteration:
An Austrian army, awfully arrayed,
Boldly by battery besieged Belgrade,
Cossacks commanders cannonading come,
Deading destruction's devastating doom.
and so on through the twenty six letters of the alphabet.
Perched on a rocky promontory, the last spur of
the Dinaric Alps, where the Save and the Danube
meet, Belgrade, the "White City," crowned by the
State, hitherto regarded as a negligible quantity in
international politics, was inhabited by a people
fired by a patriotism such as could excite the admiration of the world and possessed of an army of
unexampled courage, discipline and determination,
led by a corps of officers of which any nation might
be proud.
As the result of this successful campaign, Macedonia was redeemed from Turkish misrule and the
Serbian section of that province added to the Kingdom, raising the total number of the inhabitants
to over four and a half millions. This brilliant victory, however, ran counter to German ambitions of
creating a Mid-European Empire and the result was
the World War and all that it entailed. The victory of the Allied Powers, however, brought Serbia
her reward, the union of all the Serbian-speaking
peoples, Serbs, Croats and Slovenes, under the rule
of King Alexander.
The little Serbia of fifteen years ago, with its two
and a half million people, had become the powerful
Kingdom of the Serbs, Croats and Slovenes (popularly known as Jugoslavia), with its thirteen million inhabitants. Belgrade was no longer perched
perilously on the extreme limit of the Kingdom,
face to face with a powerful and unfriendly Empire,
but was now nearly a hundred miles from the nearest frontier, while the once all-powerful Dual Monarchy of fifty million inhabitants had ceased to exist and had shrunk to an Austrian State of six million people and a Magyar one of less than seven million, both powerless for harm.
But the victory of Serbia had been dearly bought.
In 1915 the tremendous bombardment to which Belgrade had been subjected (50,000 high explosive
shells were hurled into the city in three days) had
laid half of the city in ruins and three years of
enemy occupation had completed the destruction.
Everything that was not "too hot or too heavy"
had been carried off, a clean sweep had been made
of everything portable, from grand pianos to kitchen
utensils. The Royal Palace, the University, the Na-
MAY 26 1928.]
FINANCIAL CHRONICLE
tional Theatre and scores of other public buildings
had been laid in ruins, while trade and commerce
were at a complete standstill. The currency was
represented by millions of worthless Austrian kronen notes, left behind by the enemy; the treasury was
empty and the whole population was in the last
stage of destitution. The enemy, before evacuating
the country, had reduced the railway system to a
junk heap, every bridge, tunnel and culvert was
blown up and destroyed, the stations burnt and the
rolling stock carried off.
Such was the situation nine short years ago, one
that might have appalled a people less courageous
than the Serbs. With the indomitable courage of
"the nation that can never die" they faced the economical situation with the same determination they
had shown on the battlefield. The result achieved
can only be described as astounding. In 1918 Belgrade had less than 80,000 inhabitants; to-day it
has crossed the quarter of a million mark and is increasing by thousands every month. When the
bridge linking up the city with the town of Pancevo,
on the other side of the Danube, is completed next
year, that town will become a suburb of the capital and will add thirty thousand to the population.
When the projected foot-bridge connecting Semlin
with Belgrade is completed (the railway bridge
already exists) the town will also be added to the
city complex and Belgrade will reach a population
of nearly half a million.
In the last five years the main streets of the city
have been rebuilt from one end to the other, palatial banks and other public buildings have replaced
the two-story buildings of former times and magnificent shops and department stores now cater to the
public. A dozen cafes, rivaling those of Vienna and
Budapest in the halcyon days of the Austrian Empire, have sprung up while every afternoon and
evening the leading hotels echo to the sounds of
jazz bands to which hundieds of Belgraders dance
the Charleston and the Black Bottom with the same
enthusiasm as New York, Paris or London.
The French have a proverb quand le batiment
marche, tout marche (when building goes, everything goes). If this is true, then Belgrade must
be enjoying the maximum prosperity, for the
amount, both of private houses and public buildings, that is going on is something astounding. The
new Parliament House which is approaching completion will vie in magnificence with those of other
European capitals.
The National Theatre has profited from Russian
revolution by falling heir to the singers and ballet
dancers of the Imperial Opera House at Petrograd
and gives performances of the leading operas in a
manner which would do credit to any European capital. At the present moment, however, the streets
of the city are in a state of "upness" such as New
York never knew, even in the worst days of subway
construction. The terrible state of the city paving
was, for decades past, the worst feature of the Serbian capital, consisting as it did of miles of ancient
cobblestone, inherited from the former Turkish domination.
Financial difficulties had, up to now, prevented
the municipality from undertaking improvement.
A few months ago the Municipal loan floated in New
York provided the long desired funds and the work
of repaving the streets is now being carried on with
feverish energy, work, in many instances, going on
3195
night and day, including Sunday. When this wonl
is completed, Belgrade will, as far as paving is con
cerned, compare favorably with any modern city
This will, however, -have one regrettable result,
it will spell the doom of the horse-drawn vehicle.
To all who love a good horse and a good driver,
Belgrade-is the last stronghold of its kind in Europe. The handsome, well-built open carriages,
clean and comfortable, are drawn by horses that
any private owner might be proud to possess, beautiful, high-spirited animals, from the famous horse
breeding regions of the Banat and Batchka. But
with the improvement'of the street paving the automobiles are daily increasing in number, and their
horns, like the trumpet of Jericho, are sounding
the downfall of the last stronghold of the equine
race. It is probably only a matter of months until
the triumph of the motor-car will be complete and
the Belgrade "Fiaker" will have joined the limbo of
the things that were.
A year or two ago the King Milan Street and the
Terazije, the principal thoroughfares, were badly
lighted streets, lined by two-story shops and houses.
To-day they are a blaze of electric light from end
to end and are lined with palatial buildings of six
or seven stories, housing banks, cafes, hotels and
shops and department stores of every kind.
The whole city, one feels, is pulsing with life and
energy, while the population is inspired by a fierce
determination to make Belgrade a capital worthy of
a great country. When the far-reaching scheme of
construction now laid down will have been carried
out, it is certain that the city need not fear comparison with any city in Europe.
Much, of course, still remains to be done, as there
are still, especially in the streets running down to
the Danube, primitive houses, which will have to
be replaced by more modern erections before Belgrade can claim to be a thoroughly up-to-date city.
But nothing can rob it of its wonderful natural situation, the "White City," rising terrace above terrace
up the sides of the promontory on which it is built,
running from the frowning old Turkish citadel,
surrounded by the beautiful public gardens, the Kalimegdan, down to the banks of the Danube, the most
magnificent of European rivers, navigable almost
from its source to the sea, on whose waters float
thousands of steamers and barges, linking up Belgrade with both Eastern and Western Europe.
Its geographical situation and the importance of
its communications by land and water, would alone
assure Belgrade a great future. Its political and
strategic importance is of the first order. Since
the victorious conclusion of the World War, the
Serbs are once more installed in the proud position
they held for centuries,"the Guardians of the Gate,"
holding the key to the East and West, barring the
route to any Power which should again attempt to
dominate Central Europe and the Near East.
Curiously enough, American enterprise, except in
the two branches, automobiles and motion pictures,
seems to have made no effort to obtain a share in
the exploitation of the immense economic possibilities of Jugoslavia. The predominance of the
American motor car is, however, complete, nine automobiles out of ten being of AmeriCan manufacture,
while the portraits of Douglas. Fairbanks, Gloria
Swanson, Tom Mix, Harold Lloyd, Mary Pickford
and a score of other film stars are to be found everywhere. Except, however, these two branches of in
3196
FINANCIAL CHRONICLE
dustry, the American business world, as I have said,
seems content to allow German enterprise to undertake the exploitation of the fabulous mineral riches
of Jugoslavia and develop the lumber wealth of her
thirty thousand square miles of virgin forest.
I doubt if any other country in Europe offers as
great business opportunity as does the Kingdom of
the Serbs, Croats and Slovenes, but strange to say,
the only capital that has understood this is Berlin.
Nothing but the fact that Germany is herself still
suffering from the effects of the World War, has
limited her economic action in Jugoslavia. That
she fully realizes the immense opportunities of the
Pountryfor economic development is beyond all doubt.
For three years during the World War her armies
were in occupation of Serbia and hundreds of efficient functionaries, engineers and business men,
were sent to the Balkans to scour the country for
everything that could aid Germany to carry on the
war. Tens of thousands of tons of copper were extracted from the mines of Bor (the richest copper
mines in Europe), while the immense chrome deposits of Southern Serbia were also laid under contribution. Capable engineers went over the whole
country surveying its immense mineral wealth,
while competent lumber men investigated its thirty
thousand square miles of magnificent forests. One
may be sure that as soon as Germany has adequate
capital to spare for foreign investment the first
country to which she will turn will be Jugoslavia.
German commercial travellers have long ago invaded the country and are placing millions of dinars
worth of German merchandise in every town and
city, from Slovenia to Southern Serbia. One hears
more German in Belgrade hotels than any other
language and there is no doubt that German enterprise and business acumen bid fair to monopolize the
trade of the country. The indifference which the
American financial, industrial and commercial
world has shown to the immense possibilities of
Jugoslavia, beyond all doubt potentially one of
the richest countries in Europe, is in curious contrast to the enterprise they have shown in other
countries, much less favored in the matter of
mineral and other natural wealth.
The Rockefeller Foundation—President Vincent's Report.
There is no private organization dealing with the
present and permanent welfare of the public which
in its thoroughness, its diversity, its extent and its
fundamental character can compare with the Rockefeller Foundation. Its name is known of all; the
review of its work for the past year by its President,
Dr. George E. Vincent, just issued, presenting the
details and scope of its operations, will attract wide
attention.
This is not because it reports the expenditure of
eleven and a quarter million of dollars; benefactions
in the millions in many directions are with us now
so common as to have little more than a passing or
restricted interest. The report is of a service extending around the earth, applied to-day in no less
than 20 different directions,and growing each year
in its scope and its efficiency. To be understood it
must be read in detail; it is not to be estimated by
the sum expended, the variety of the work done,
the number ofthe institutions created or effectively
aided, or by the size and character of its working
force, which precedes it everywhere investigating
[VoL. 126.
need and directing operations. It is to be seen in
awakening a new interest and creating a new power
of permanent self-help in suffering or depressed
communities and whole peoples, where evils destroying or affecting life and health are in their helplessness or ignorance so overwhelming or so constant
as to be held incurable. Of the one class is the local
health organization called into being in 85 counties
of the six States in the Mississippi flood area; and
of the other class the prolonged effort to control
and eventually eradicate communicable disease, malaria, yellow fever, hook-worm, and the like. To
these are to be added the creation and support of local medical schools, health, laboratories and museums, with provision for their equipment, and
these as far apart as in Peking and Beirut, Siam
and Munich, London and Iowa. Then there is the
long list of fellowships and study tours for upward
of 1,000 health officers and the like, men and women
from 52 different countries, with provision for the
distribution of information and making health surveys in many lands.
Attention is called to the distinction that exists
between private and state, or public agencies. The
United States, Canada, Great Britain, South Africa,
New Zealand and Australia rely in essentials almost
entirely upon private ownership and operation;
while the European nations and the Latin countries
elsewhere, Japan, and colonial regions, entrust more
to their governments. There are many inconsistencies, however, and what seems to work well in one
country does not in another. Health for the public
is coming to be recognized as a responsibility of the
Government and must have its effective support.
But volunteer efforts have large place in creating
vital interest in prevention no less than in cure, and
have been conspicuously successful in combatting
widely destructive diseases like tuberculosis and
cancer, and in fixing attention upon others less regarded, as also in developing nursing service and
special care for little children and mothers.
In connection with the Mississippi floods, to meet
the needs of the 700,000 people driven from their
homes, the Foundation sought ways to increase the
effectiveness of the aid at once proffered by the Red
Cross, the national Government, the railways and
the vast band of volunteer workers, which was approximately thirty millions of dollars. This it could
most effectively do by uniting the United States
Public Health Service and the local State and county health departments in extending the system of
health agencies which the Foundation had previously set up in many of the counties, till the 100 counties of the flooded area should be covered by them.
To this the Foundation contributed $1,250,000 to be
expended within a year and a half. By the close of
1927, 85 counties were so cared for. In addition, stations have been opened in adjoining States for
nurses and sanatory officers, with some 450 of these
already enrolled.
This training for a career of public health is a
main interest of the Foundation. During the year
it has aided or established schools for this purpose
in the Universities of Toronto, Harvard, and Johns
Hopkins, and in London, Oslo, Prague, Warsaw,
Budapest, Zagreb, and Sao Paulo, with schools for
nurses in most of these, as well as in Yale and Vanderbilt Universities, and in Saranac, Rio de Janeiro,
Lyons, Paris, Cracow, Belgrade, Bangkok, Peking
and Tokio. In all these the aim is to increase the
MAY 26 1928.]
FINANCIAL CHRONICLE
3197
area open for the study and care of the public health. During the year 353 county health organizations in
The scope of preventive medicine and that of the 23 States of the United States and 31 similar rural
physician are enlarged, and their dependence upon demonstrations in foreign lands were aided. These
science and intensive research is emphasized and local organizations vary their work in different congenerously aided. Aid is given in many ways to ditions, as in sanitation, control of communicable
medical schools everywhere and they and their vari- diseases, or hygiene. This year for the first time
ous needs are kept in constant touch. In Peking, in the Foundation aided the work of national comparticular, the Foundation has created a medical mittees in mental hygiene and brain psychology in
school of the highest grade, provided with all the the United States and Canada.
The time seems to have come when for the sake
latest facilities, that it may serve as a model for
the new life developing in China. It is already fur- of medicine, the biological sciences and the sciences
nishing properly trained nurses for both the north- based upon them, psychology and anthropology
should be cultivated not simply with relation to disern and the southern armies.
When this year a crisis arose in the effort of ease and its cure, but as interpretative of the deUniversity College of London to create a true uni- velopment of life as a whole. With this in view,
versity center in the Bloomsbury district, and the special aid has been given for investigations in Yale
project was likely to fail for lack of funds, the Rock- and Johns Hopkins Universities, the Australian Naefeller Foundation came to its aid with a gift of tional Research Council, the university of Hawaii
$2,000,000 to complete the purchase of the site ad- and the Bishop Museum of Honolulu. It has also
joining the British Museum. When the motive of been extended for premedical sciences to 13 colleges
the gift was questioned, the fine answer was a dis- in China and the University in Siam.
Much more might be said of the work in connecavowal of any thought of charity: "The Foundation
welcomes the opportunity," it was said, "to add a tion with fellowship funds and promoting interrelatively modest sum to the many millions which communication between physicians, and the spread
the British people are devoting to scholarship and of ideas, technical and scientific in different lands.
teaching that exert an influence far beyond the Brit- To contribute to a common fund of knowledge, skill
and idealism must be the ambition of the differish isles and the boundaries of the Empire."
Continuing the pursuit of malaria begun in 1916, ent nations if patriotism is to gain a nobler signifiaid has been given to research investigation for fur- cance than in the past. With its charted purpose of
ther knowledge in Chicago and Johns Hopkins Uni- "the well-being of mankind throughout the world,"
versities, and by experts in the Netherlands and at the Rockefeller Foundation is winning a noble disfield stations in North Carolina, Italy, Corsica, Ar- tinction.
gentina and Venezuela.
The sacrificial cost of this service is sadly deIn fighting the hookworm since 1910 results have clared in the death of the Foundation's distinguished
been obtained, described as "dramatic," by mass representative, Dr. Noguchi, just announced on the
treatment which quickly rids whole populations of West Coast of Africa where he went to confirm the
the parasites, and the soil from pollution. During result of his study of yellow fever and to make the
the year the work of eradication has been aided in last essential tests. Fatally stricken himself, he is
17 different lands as widely separated as the West one more in the roll of devoted men who have not
Indies and Siam, or Spain and Fiji. Hookworm hestitated to make the supreme sacrifice that the
control units in our Southern States have been scourge of a devastating disease might be eradigradually changed into county health organizations. cated.
Inter-State Commerce Commission Grants Chesapeake & Ohio Authority to acquire
Pere Marquette—Conditional Authority Also given to Issue $20,000,000 in Stock
To Finance Deal—Application Denied To Acquire Erie RR.—Commission Assails
Personal Profits in Purchase and Exchange of Shares.
The I.-S. C. Commission in a decision made public May
18 conditionally approved the acquisition of control of the
Pere Marquette Ry. by the Chesapeake & Ohio Ry., but
disapproved the proposed acquisition of the Erie R. R.
Authority was also conditionally granted the Chesapeake
& Ohio Ry. to issue not exceeding $20,000,000 common stock,
to be used in connection with the acquisition of the Pere
Marquette. The permission for the Pere Marquette acquisition was given under conditions which it is stated will
force the Van Sweringen interests, which control the Chesapeake & Ohio, to surrender virtually all thought of profits
from stock operations which preceded the merger application.
The decision was rendered on the applications filed by
the Chesapeake & Ohio on Feb. 11 1927. Commissioners
Campbell, Eastman and Woodlock dissented in part and
Commissioner Porter concurred in a separate opinion.
The plan was proposed as an intermediate step toward
unification of the three lines of railroad. The report says
the applicant has not demonstrated a necessity for control
of the Erie, because of lack of outlet for its coal traffic
and that the Commission does not consider the relationship
of the Chesapeake & Ohio and Erie as complimentary or
supplementary. As a further objection, it is stated that
this would constitute practically an allocation of an important New York-Chicago trunk line in advance of the
adoption of any general plan for the formation of competitive systems in eastern territory.
Another feature of the Commission's decision is a refusal to permit the Chesapeake & Ohio to issue additional
stock to obtain money essential to the financing of the
merger on a basis which the Chesapeake & Ohio had
thought fair to its stockholders. The company's proposal
was to sell 595,024 additional shares of common stock
which would be offered to present shareholders at par to
the extent of 50% of their respective holdings. The C. & 0.
common stock has been selling recently at about 200 or over
(the range for the past week having been 205 high, 1963k
low), and the Commission considered this basis of distribution too generous. Instead, it specified that the company
might issue not to exceed 200,000 shares to be offered to
present common stockholders at $150 a share to the extent
of one additional share for each six shares of their respective holdings.
The Commission's ruling further restricts the Van Sweringen interests from paying more than $110 per share for
additional common stock or more than $100 per share for
prior preference stock of the Pere Marquette which is
necessary for majority control. Whether under such conditions the C. & 0., as controlled by the Van Sweringens,
can obtain the additional stock on the basis fixed by the
Commission, even if the Van Sweringen interests are will-
3198
FINANCIAL CHRONICLE
lug to turn Over to the C. & 0. all stock that they own at
$110 a share for the common shares is a matter of considerable speculation as the Pere Marquette common is
selling around $140 (the range for the past week having
been 146 high, 139% low), and the prior preference around
100 (the range for the past week having been 10034 high,
9934 low). The plan just passed on differs from the Nickel
Plate proposal rejected by the Commission in March 1926
(see "Chronicle," V. 122, p. 1249), in that the old plan
proposed the unification of the Nickel Plate, Erie, Pere
Marquette, Hocking Valley and Chesapeake & Ohio roads,
whereas in the new proposal the Nickel Plate was not directly a party to it, despite the fact that the Van Sweringen interests, which control the Nickel Plate, were the
dominant figures in the new offer. The plan proposed was
an intermediate step toward the unification of the Chesapeake & Ohio, the Erie and the Pere Marquette and indirectly involved the Hocking Valley, controlled by the Chesapeake & Ohio.
The report of the Commission in full follows:
By the Commission:
The Chesapeake & Ohio Railway Company on Feb. 11 1927 filed an
application under paragraph (2) of section. 5 of the Inter-State Commerce
Act for an order authorizing it to acquire control of the Erie Railroad
Company and the Pere Marquette Railway Company by the purchase of all,
or at least a numerical majority, of their shares of capital stock. All
of these companies ar,t carriers by railroad subject to the act. On the
same date, the Chesapeake & Ohio filed an application under section 20a
of the act for authority to issue $59,502,400 of common capital stock,
consisting of 595,024 shares of the par value of $100 each.
Minority Stockholders of Chesapeake dc Ohio Ry. Only Objectors.
Intervening petitions in each proceeding were filed by George S. Kemp
and others, representing a stockholder's protective committee of the applicant's shareholders. This committee introduced the only objections which
have been presented to us against granting the applications.
Short lanes Also File Petitions of Intervention.
Petitions of intervention were also filed by the Detroit & Mackinac
Railway Company, Big Sandy k Kentucky River Railway Company, Arcade de Attica Railroad Corporation, Prattaburg Railway Corporation,
New York & Pennsylvania Railway Company, Morehead & North Fork Railroad Company, Mount Jewett, Kinzua Sc Riterville Railroad Company,
Chicago, Attica & Southern Railroad Company, Arcadia lc Betsey River
Railway Company, and Middletown & Unionville Railroad Company.
These short lines do not oppose the plan proposed by the applicant, but
in the event it is approved by us they ask that provision be made She
their inclusion in the projected system or for protection of existing
rights. A hearing upon both applications has been had, briefs have been
filed, and the cases have been argued orally.
Proposed Plan Intermediate Step Toward Unification of Three Lines.
The plan proposed is an intermediate step toward unification of the
three lines of railroad, and the applicant represents that the advantages
in operation and service to be derived hereafter from unification will be
realized to a large extent during the period of stock control. It is contended that the lines are not competitive, but that they are complementary
and supplementary. The present plan is the outgrowth of our denial of
the applications in Nickel Plate Unification, 105 I. C. C. 425, decided
March 2 1926. In that case, the New York, Chicago & St. Louis Railway
Company, a new corporation, sought authority, inter alia, under paragraph (2) of section 5 of the act, to acquire control of the Chesapeake k
Ohio Railway Company, Hocking Valley Railway Company, Erie Railroad
Company, Pere Marquette Railway Company, and New York, Chicago k
St. Louis Railroad Company, the latter generally known as the Nickel
Plate. It was proposed to issue stock of the new company to stockholders
of the other companies, except the Nickel Plate, in exchange for the stock
held by them, upon the basis of certain ratios, and to issue to the Nickel
Plate itself stock of the new company equal in amount and kind to the
outstanding stock of the Nickel Plate. The new company also proposed
to lease the properties of the other companies. We found that the consideration, terms, and conditions of the proposed acquisition of control
were not just and reasonable, and the applications were denied. The
Nickel Plate and the Chesapeake & Ohio are controlled by 0. P. and M. J.
Van Sweringen and their associates, generally referred to as the Van
Sweringen interests, and the Chesapeake & Ohio owns approximately 80%
of the stock of the Hocking Valley.
In the present case the Nickel Plate is omitted, and Instead of a new
company acquiring control of the carriers named above by exthange of
capital stock and by leases, the present plan contemplates acquisition
by the Chesapeake & Ohio cf control of the Erie and the Pere Marquette
by purchase of at least a sufficient amount of the stock of each of those
companies to insure such control.
Mileage Embraced in Systems.
The applicant operates 2,650.95 miles of road, including 266.76 miles
operated under trackage rights. Its railroad extends from Newport News.
Va., through Cincinnati, Ohio, to Chicago, with numerous branches in
the coal fields of West Virginia and Kentucky. Washington, D. C., and
Louisville, Ky., are reached by trackage rights over the lines of other
companies. Through its control of the Hocking Valley Railway and
the Chesapeake & Hocking Railway, the applicant reaches Toledo, Ohio.
The applicant transported 67,863,293 tons of revenue freight during
1926, of which 55,807,362 tons were bituminous coal. The total tonnage
of coal produced by mines on the road and its short line connections was
58,509,638. This class of traffic was more than doubled in the five
years ended Dec. 31 1926.
The Erie system embraces 2,564.53 miles of line, of which 129.05 miles
are operated under trackage rights other than intra-system agreements.
Separately operated lines which the Erie Railroad controls by ownership
of capital stock are the Chicago St Erie, operating 269.56 miles of road;
New York, Susquehanna & Western, operating 134.47 miles; WilkesBarre & Eastern, operating 87.04 miles; New York & New Jersey, operating 45.72 miles; and Bath dr Hammondsport, operating 9.20 miles. The
principal terminals of the system are New York and Chicago, and it has
important lines reaching Rochester and Buffalo, N. Y., Cleveland, Cin-
[VoL. 126.
cinnati, and Youngstown, 0., and the Mahoning and Shenango Valleys of
Pennsylvania. It connects with the Chesapeake & Ohio at Cincinnati and
at several points in and near Chicago; with the Hocking Valley at Marion.
Ohio; and with the Pere Marquette at Buffalo, N. Y., and Chicago.
The revenue freight tonnage transported in 1926 on the main lines was
51,764,346 tons. The tonnage originated on the system was 21,856,681
tons, of which 8,151,662 tons were anthracite coal. Bituminous coal
produced on the Erie amounts to only 750,000 tons per year and is used
for company fuel. Of the total anthracite production in 1926, 5,607,333
tons, or 68.8%, were from mines controlled by the Erie. Of total
freight revenue in 1926, 29% was derived from coal traffic and 71%
from merchandise. The reverse of these proportions obtained, approximately, in the Chesapeake & Ohio-Hocking Valley revenues. The density
of freight traffic on the Erie system in 1926 is represented by 4,050,660
revenue ton-miles per mile of road, while that of the Chesapeake & OhioHocking Valley is 7,485,583. On the line are located some 2,600 industries, and 16,000 others are served by switching connections.
As of Dec. 31 1926 the Erie had outstanding 4176,886,300 of capital
stock, consisting of $112,481,900 of common, $47,904,400 of first preferred 4% non-cumulative, and $16,000,000 of second preferred 4% noncumulative, the par value of each class being $100 per share, and each
class having general voting powers. Including the Chicago & Erie, it
also had outstanding funded debt unmatured aggregating $225,090,034.96.
The Erie and Chicago & Erie together are capitalized at $173,274 per mile
of road operated, as compared with $117,978 for the applicant.
The consolidated income account of the Erie for the year ended Dec. 31
1926 shows net incetne of $9,616,417. After deducting income applied
to sinking and other reserve funds amounting to $1,369,464, the balance
transferred to credit of profit and loss is shown as $8,256,953. Included
in this amount is $5,600,000 received by the Erie as dividends from two
of the four coal companies controlled by it. Excluding the coal company
dividends, the profit and loss credit balance shown above would have
been reduced to $2,646,953. After dividends on the preferred stock
the net available for dividends for the common stock would
have been $90,777. The applicant's president testified that it would not
have been prudent for the Erie to have paid dividends at any time during
the past ten years.
The l'ere Marquette operates 2,286.13 miles of road, of which 337 miles
are in Canada. A total of 307.97 miles are operated by trackage rights.
Its eastern termini in the United States are Port Huron and Detroit, Mich.,
and Toledo, 0. Its Canadian lines terminate at Erieau, on Lake Erie, and
at St. Thomas, Ont., and by trackage rights over the Michigan Central it
reaches Black Rock and Suspension Bridge, N. Y., at both places making
connection with the Erie. From its western terminus at Ludington, Mich.,
car ferries are operated across Lake Michigan to Kewaunee, Manitowoc,
and Milwaukee, Wis. It enters Chicago by using 47.34 miles of other lint*.
At LaCrosse, Ind., it connects with the applicant's Chicago division, and at
Toledo, 0., with the Hocking Valley. The latter connection is effected by
trackage over the Toledo Terminal RR. The Pere Marquette's entrance
into Toledo involves trackage agreements with eight companies, none of
these agreements being long-term contracts. Of 19,402,508 tons of revenue
freight carried in 1926, 9,390,180 tons originated on its line, and it is
stated that nearly 80% of the entire freight business handled by the road
either originates, terminates, or is local to its own rails. Coal constitutes
a relatively mall part of the total traffic, and the coal produced on the
line is i•anall in amount and of inferior quality. Freight traffic density in
1926 was 1,475,198 revenue ton-miles per mile of road. The Pere Marquette
serves about 1,100 industries directly and 6,500 others through switching
connections.
As of Dec. 31 1926 the l'ere Marquette had outstanding $68,675,000 of
capital stock, consisting of $45,046,000 of common, $12,429,000 of pref.
cumu., and $11,200,000 of prior pref. 5% cumu., the par value of each
class being $100 per share, and each class having general voting powers.
It also had outstanding $52,003,000 of funded debt unmatured. Its net
income for the year ended Dec. 31 1926 was $7,702,004.
Proposed Unified System Would Have 7,890 Mileage.
The applicant represents that when the unification of these lines shall
have been accomplished there will have been created a system comprising approximately 7,553 miles of road in the United States and 337
miles of road in Canada, comparable in all essential respects with the
existing large systems serving the territory between Chicago and the
Mississippi River on the west and the Atlantic seaboard. Numerous
transportation advantages are claimed for this combination, among them
being elimination of delays at interchange points and a more efficient use
of equipment. The applicant desires to be the dominant factor in a
strong system and to secure control of the Erie and Pere Marquette before
other interests shall have done so; to be freed from its dependence on
the large systems operating in the same general region for distribution of
much of its originated traffic, and to serve its consuming territory more
directly.
Virginia Transportation Corp. a Convenience Company Formed to Acquire
Stocks of Brie and Pere Marquette Roads.
The applicant has already acquired through the Virginia Transportation
Corp., a subsidiary, or has secured options upon, a substantial proportion
of the Erie's outstanding stock, as shown in the following table:
No. of Att. Cost
Total
Shares. per Share.
Cost.
Held by Virginia Transportation Corp.:
1st preferred
137,405 347.210
$6,486,882.90
2nd preferred
50.495 44.936
2,269.068 32
Common
357.300 38.683
13,785,644.84
545,200 141.346 122,541,596.06
Under opt.fr.0.P.Van Sweringen(Vaness Co ):
1st preferred
23,695 46.876
1.087,008.13
2nd preferred
22.305 43.750
975.843.75
Common
345,239 34.600
11,910,745.60
391,239 335.716 $13,973,597.38
Int.Sept.291926. to June 30 1927
628,811.89
137.323 514.602.409.27
Total
936,439 $38.994 $36.515.193.44
Total, with interest
37,144,005.33
936,439 39.661
Auth. to be purchased at same prices as In Van
Sweringen opt.; owner's name not given:
1st preferred
$45,875.00
1,000 345.876
2nd preferred
105,000.00
2,400 43.760
Common
131,500 34.600
4.536.760.00
34.749
4,687.625.00
134.900
Int.Sept. 291026,to June 30 1927
210.943.13
36.313
24.898,568.13
Grand totals
1 071,339 139.243
Total Erie sha. outsdg. at the time of filing
the applications
1 763.863
$42,042,573.46
MAY 26 1928.]
FINANCIAL CHRONICLE
The Virginia Transportation Corp. was organized under the laws of Marywith an
land in October 1926, at the direction of 0. P. Van Sweringen,
or par value,
authorized capital stock of 500,000 shares without nominal
corpoall of which is held by the applicant. It is admittedly a convenience
in the
ration, formed for the purpose of holding the applicant's interests
Erie and the Pere Marquette.
While the aggregate amount shown above indicates acquisition of 60.7%
of stock control of the Erie, it appears that there is now no assurance of
the applicant's ability to purchase the block of 134,900 shares at the
prices shown. Omitting this block, the percentage is 53.1, and giving effect
to $19,317,400 of Erie convertible bonds, series D, which had been converted into 386,348 shares of common stock, as of October 18 1927, it falls
to 43.6. A further reduction would result from the exercise of certain
voting rights by holders of Erie prior-lien and general-lien mtge. bonds, of
which there are $70,885,000-corresponding to 708,850 shares of stock
outstanding. As the applicant has not submitted the details of its procedure in making further acquisitions of Erie stock, and as the market
prices of such stocks have changed materially since the date of the applications, it is manifest that the cost, terms, and conditions of procuring an
assured numerical majority are not now before us. It is not improbable
that the ultimate cost of acquiring 51% of voting control, including bonds
which have been converted into stock and bonds which carry voting privileges, might exceed $65,000,000.
The situation as to Pere Marquette stocks is as follows:
Total
No. or Av. Cost
Cost.
Shares. per Share.
Held by Virginia Transportation Corp.:
8196.676.29
2,100 393.655
Prior preferenee
1.142.838.79
12,600 90.702
Preferred
222,620.11
1,900 117.168
Common
$1,562,135.19
16,600 394.105
Under Opt.fr.0.P.Van Sweringen(Vaness Co.):
*4.015,000.00
36,500 110.00
Common
Total
Expired option from Nickel Plate RR.:
Common
Common
encountered up
conceded that, in the main, no serious difficulty has been
Total revenue
to the present time in distributing an increasing tonnage.
to 55,807,362
coal shipments on the applicant's lines in 1926 amounted
was despite the
tons as compared with 23,756,528 tons in 1921. And this
of freight by
traffic restrictions heretofore imposed upon the movement
Valley Crosscongestion at the Cincinnati gateway and between Gregg and
large amounts
by
ing. The applicant's westbound coal tonnage has increased
considerably greater
each year since 1921, the rate of such increase being
removal of the restrictions
than that of the eastbound movement. With the
Cincinnati now in
referred to, through the enlargement of facilities at
Railway between
progress and the construction of the Chesapeake & Hocking
applicant would apparGregg and Valley Crossing, recently completed, the
less restraint
with
future
ently be in position to expand its business in the
its relations with either
than in the past, without regard to any change in
the Erie or the Pere Marquette.
$5,577,135.19
53,100
169,100
5,800
110.00
110.18
174,800
Auth. to be porch. at same prices: Owner's
50,000
name not given
110.00
18,601,000.00
639,162.50
.319,240,162.50
*5.500,000.00
*30,317,297.69
278,000
Grand totals
Total Pere Marquette shares outstanding_ 686,750
• Carrying charges to be added.
The entire 278,000 shares represent 40.5% of stock control, and after
deducting the Nickel Plate shares, upon which an extension of the option,
expired July 1 1927, has been formally refused by the Nickel Plate board
of directors, and after also deducting the 50,000 shares, the purchase of
which at the stated price is now doubtful because of the advance in market
price, there remain only 53,100 shares, or 7.7%, of the total Pere Marquette outstanding stocks actually owned or available to the applicant at
known prices.
The applicants board of directors has authorized further purchase of
stocks of the Erie and l'ere Marquette, up to a numerical majority of each,
at such prices and on such terms as the board may from time to time
determine.
Of the aggregate cost of stocks so far acquired, $24,103,731, the applicant
has contributed from its treasury $19,535,085. The difference between
these SUM corresponds substantially to the indebtedness carried by the
Virginian Transportation Corp., which, in exchange for 475,000 shares of
Erie stocks, issued and transferred to the applicant all of its capital stock.
The purchases of Erie and Pere Marquette stocks by the applicant have
been made in accordance with appropriate action by its board of directors,
which also approved the adoption of the then prevailing market prices in the
Van Sweringen option on 391,239 shares of Erie stocks of all classes owned
by the Vaness Co., and the 134,900 shares held by other interests, the consideration to be paid for the 174,900 shares of Pere Marquette common
stock controlled by the Nickel Plate RR. through its subsidiary, the Pere
Marquette Corp., and the similar consideration to be paid for 36,500 shares
of Pere Marquette common stock held by the Venetia Co. The decision to
purchase a large interest in Erie was made on Sept. 29 1926, and in Pere
Marquette on October 18 1926, in both cases being based on the recommendations of a special committee of five directors appointed by the
chairman early in May of the same year. The application herein was
approved by the stockholders at their annual meeting held on April 19 1927,
the vete being 810,437 shares in favor of, and 126,496 shares against,
adoption of the ratifying resolution. The outstanding capital stock of the
applicant was then 1,190,080 shares. The protective committee claims to
represent 126,268 shares, held by 1,269 persons.
Transporting Coal °iron as Paramount Reason for Acquiring Control of
Roads.
Paramount among the reasons advanced by the applicant for securing
control of the Erie and Pere Marquette is the necessity for transporting its
coal traffic more directly and efficiently by single line hauls and co-ordinated train service from the coal mines on its lines to the territory in
which the coal is consumed, and particularly to Chicago, Detroit and
southern Michigan, thus placing it on a parity with its principal competitors. It claims to be dependent on other lines for delivery of a large
proportion of its westbound coal and represents that shippers would benefit
from the greater elasticity and efficiency of service which would result
(rem the arrangement proposed. Of 38,482,568 tons of bituminous coal
originated on its lines and moved westward in 1926, 68.6% was delivered
to connections of the Chesapeake & Ohio and the Hocking Valley. Approximately 33,000,001 tons passed through the gateways of Cincinnati and
Columbus to Use following destinations: Ohio, 7,730,403 tons; Indiana,
2,799,964 tons; Michigan, 7,379,124 tons; Chicago, 4,472,665 tons:
Illinois, points other than Chicago, 302,569 tons; lake cargo, 8,974,218
tone; lake ferries and the northwest, 966,098 tons; and Canada 315,605 tons.
More than one-half of the total tonnage which moved through these gateways, including a considerable amount received from connections, was
delivered to New York Central, Pennsylvania, and Baltimore & Ohio lines,
while the tonnage delivered to the Erie and Pere Marquette aggregated
approximately 3% and 5%, respectively, of the total. The extent to
which the New York Central and other large systems acted as bridge
carriers between the Chesapeake & Ohio lines and the Erie and Pere Marquette cannot be definitely ascertained from the record, but it was probably
not great. The applicant claims that it was during a period when the coal
production on their own lines was restricted by labor conditions that the
New York Central, Pennsylvania, and Baltimore & Ohio were most active in
taking the applicant's coal. There has been a heavy increase in such interchange since 1922, and although instances have occurred in which connecting lines have failed to take the applicant's coal expeditiously, it must be
3199
Erie's Function Under Proposed Plan.
principally to provide a lowThe Erie's function under the plan would be
Chicago, for the movegrade, high-capacity line between Marion, 0., and
4,472,665 tons originating on
ment of coal to Chicago and beyond. Of the
in 1926 only 2,529,759
applicant's line and shipped to or through Chicago
The route proposed
tons moved over the applicant's Chicago division.
and Hocking
would be via Chesapeake & Ohio, Chesapeake & Hocking,
is 5 miles longer
Valley lines to Marion, and west via the Erie. This route
ack and has a
than the applicant's route via Cincinnati, but is double-tr
division is
0.2% ruling grades westbound, while the applicant's Chicago
Cheviot, 0..
single-track and has a grade of 1.9% between Cincinnati and
savings from
and many other ruling grades in excess of 1%. Operating
1926 have been
the use of the Erie route, based on the coal tonnage of
out-of-pocket expense
computed by the applicant at more than $1,000,000 in
handle an increase in
per annum. It is testified that the Erie line can
to the Erietraffic of at least 100%. As the coal movement is transferred
merchandise and
Marion route, it is expected that an equal amount of
division through
other high-class freight will be secured for the Chicago
business, as so
solicitation, and by routing all future Chicago division
Griffith, Ill., it
constituted, over the Erie between North Judson, Ind., and
be made. Additional
is contended that a yearly saving of $168,000 can
terminal operations at
economies, to be gained by changes in yard and
in connection with
Marion and Chicago, bring the total estimate of savings
opproximately $1,744,000
the use of Erie facilities, other than shops, to
per annum.
is that of securing a
A further advantage anticipated by the applicant
Marion and extending as
market for its coal in the territory lying east of
-Youngstown industrial
far as Meadville, Pa. It is estimated that the Akron
annum. The quantity
district of Ohio consumes 12,000,000 tons of coal per
is not of record, but
district
that
in
used
now
coal
Ohio
&
of Chesapeake
Erie lines or is delivered to
as little bituminous coal is produced on the
Valley, it may be assumed
the Erie by the Chesapeake & Ohio and Hocking
other roads. The record
that the district is now supplied principally by
Marion and Meadville
Indicates, however, that the Erie line between
in the Nickel
operates over heavy grades. This fact also was recognized
relieve the congestion
Plate Unification case, and it was there proposed to
freight,
perishable
especially
by routing some of the Erie eastbound traffic,
the Erie at Buffalo.
over the Nickel Plate from Lima, 0., returning it to
handling Chesapeake
In connection with the proposed use of the Erie in
submits that to
& Ohio coal destined to Chicago and beyond, the applicant
would be approxiimprove its Chicago division so that the cost of operation
would entail an
mately equal to that of the Columbus-Marion-Chicago route
$21,186,500
expenditure of $33,993,000. It is to be noted that of this total,
Carrel St.,
is attributable to a new line crossing the Ohio River near
Four, and
Cincinnati, affording connection with the Baltimore & Ohio, Big
other systems east of Cincinnati, and extending about 65 miles northerly
before joining the present location at Boston, Ind. The reason for allocating
former
the cost of this project entirely to the Chicago division, whereas
plans for developing a belt line east of Cincinnati had not been so considered,
imextensive
appears to arise from the fact that the applicant has begun
provements on its present Ohio River bridge and approaches and has
deferred consideration of the belt line. The improvements being made
in the present location will increase the operating capacity of the Cinlines,
cinnati gateway and the facilities for interchange with connecting
not relieve the very unfavorable conditions existing on the Chicago
division.
The extent to which the present situation has.been influenced by the
be
prospect of an alliance of the Erie with the Chesapeake & Ohio cannot
division
determined, but it is clear that the excessive grades on the Chicago
in
will continue to impose a burden on the system, even though a change
heretofore
the character of traffic handled may tend to reduce the losses
the
indicating
evidence
suffered on that division. In the absence of
operation, nothing
probable effect on grade reduction upon the cost of
for reconconclusive is proved by a comparison between the expenditure
gained by the use of
struction and the estimates of operating savings to be
from
directly
the Erie route. It is evident that the applicant would benefit
its capacity
any improvements made on the Chicago division to increase
from the use
and reduce the cost of operation, while savings to be effected
lines. The
of the Erie route would be distributed among the constituent
demonstrated With
economic advantages of the proposition have not been
that the
the completeness and clarity that are required when it is evident
the most important
advantage of the Erie route to Chicago constitutes
of the
control
proposed
consideration advanced in favor of the applicant's
Erie system.
Pere Marquette's Function Under Plan.
on its
The applicant states that of the 7,379,124 tons of coal mined
lines and shipped by various routes to destinations in the State of Michigan
reached
during 1926, approximately 5,500,000 tons were delivered at points
by the Pere Marquette, and might, inferentially, have been transported by
of this
percentage
what
that carrier. There is nothing of record to show
traffic was destined to industries located on the Pere Marquette, neither is
It shown to what extent the traffic was and is routed by the shippers.
Probably not more than 1,500,000 tons were delivered either directly by
the applicant or via the Hocking Valley to the Pere Marquette, whose total
receipts of coal from all connections were only 4,135,765 tons. It was
testified that some difficulty had been experienced by the applicant in
making deliveries to the Pere Marquette because of the limitations of the
Norfolk & Western line between Gregg and Parson's Yard (Columbus), and
that a very considerable part of the tonnage which reached Michigan was
delivered to connections at Cincinnati.
By means of its car ferries operating across Lake Michigan throughout
the year, the Pere Marquette makes connection with several of the northwestern systems, thus providing a route to the territory served by those
systems without passing through the Chicago gateway. It is also in
position to afford the applicant an entrance into Detroit. Geographically,
3200
FINANCIAL CHRONICLE
[Vora. 126.
the Pere Marquette constitutes a northern extension of the Chesapeaketime. Control of Buffalo, Rochester & Pittsburgh Ry. by Delaware & Mud.
Hocking lines, which terminate at Toledo. The field for the consumption
son Co., 131 L-S. C. C. 760, decided Dec. 13 1927.
of Chesapeake & Ohio coal beyond Chicago, the Mississippi River and
Lake
As we said in our report in Control of Virginian Ry., 117 I.-S. C. C.
67,
Michigan is said to be increasing, partly by reason of competitive rates
to and have repeated in other proceedings, a clear showing of
public gain
points in Iowa, Kansas, Minnesota, Missouri, Nebraska and the Dakotas.
must be made in order adequately to support an affirmative finding in
In addition to the benefits claimed for the plan in the matter of
coal cases of proposed control. We are unable to find such showing
in this
distribution, it is represented that both the Erie and Pere Marquette would
furnish a considerable amount of traffic moving east and south that is record so far as it relates to proposed control of the Erie.
Purchase of Erie Stock—Indications of Increased Income on Erie.
needed by the applicant to balance its westbound movement of coal.
Several new main routes are contemplated, such as that between Detroit,
Before filing the applications, the applicant expended from its treasury
Mich., and Youngstown, 0., via Pere Marquette, Hocking Valley and Erie. the sum of $19,535,085 in acquiring
119,005 shares of Erie 1st pref.,
A direct merchandise line to the south and southeast, by way of Elkhorn 50,295 shares of 2nd pref., and 305,700
shares of common stock. Additional
Clity, Ky., is suggested. The products of iron, steel, rubber, machinery, purchases, made by the Virginia Transportation
Corp., brought the total
etc., originating in the Akron-Youngstown district and the Mahoning
and purchases in Erie to 545,200 shares, and the total investment of the VirShenange Valleys, would be made more available than they are at present ginia Transportation Corp. therein to $22,537,476.
It appears that the
to markets in the applicant's territory. The advantages of the port of Erie stocks thus acquired were bought at fair
market prices as of the dates
Hampton Roads are also mentioned, and the prospect of developing that of purchase. The common stock of the
Erie represents an equity much in
port by means of the proposed association of these railroads is described. excess of the prices paid, measured either
by book investment or on the
No Specific Objection to Proposed Control of Pere Marquette from Trans- basis of the tentative valuation made by us. No dividends on any class of
Erie stock have been paid for many years, but there are indications of
portation Standpoint.
material improvement in the net income of the system. In part reflecting
No specific objection from a transportation standpoint has been pre- this favorable
prospect, the market value of all classes of Erie stocks has
sented to us with respect to the applicant's proposed control of the Pere
risen in a marked degree since the purchases under consideration were
Marquette. Such control, as we have seen, would in effect extend the applimade. As events have transpired, the applicant's present investment in
cant's territory in a northerly direction, ernbracing a large part of
the Erie does not indicate any financial loss. We have pointed out in several
State of Michigan, where a considerable amount of Chesapeake & Ohio
coal instances that the purchase by one railroad company of securities of
is consumed, and would afford the applicant a direct route to lake
ferries another is fraught with risk to the carrier
making the purchase.
making connection with northwestern systems. There would be
created
an enlargement of the extension already accomplished by the
Purchase of Stock of Pere Marquette.
applicant's
control of the Hocking Valley through its ownership of 80% of that
No purchases of stock of the Pere Marquette have been made directly by
company's stock. There is no substantial competition between the
Chesapeake the applicant, but in its interest the Virginia Transportation Corp. has
& Ohio and the Pere Marquette; on the contrary, the supplemental
nature obligated itself in acquiring 2,100 shares of prior pref., 12,800 shares of
of their transportation functions is evident. Regarded as a
single system, pref., and 1,900 shares of corn, stock, at a total cost of $1,562,135. The
the Chesapeake & Ohio, Hocking Valley and Pere Marquette
would operate prices paid were consistent with the then prevailing market. The common
in competition with the Pennsylvania, New York Central, and,
to a con- stock had an equity, as of Dec. 31 1926 of approximately $148 per share,
siderable extent, with the Baltimore & Ohio, between the Atlantic
seaboard based on book investment in road and equipment, and approximately $124
on the east and the Great Lakes and Michigan points on the
west. It
per share based on the final value found by us. All of the Pere Marquette
been argued in this and other proceedings that the great coal-pro has
ducing stocks just described, together with 70,200 shares of Erie, costing about
roads should be kept separate for independent operation, to
the end that $3,000,000, were acquired by the Virginia Transportation Corp. The
this basic commodity may move freely to all connections, but
we are of current liabilities of that corporation as of April 30 1927 amounted to
the opinion that no restriction on its coal distribution would
result from $4,648,931. Among these liabilities was a promissory note for $2,800,000
the applicant's control of the Pere Marquette. In addition to
maintaining in favor of J. P. Morgan & Co., secured by pledge of 140,000 shares of
all existing outlets and connections, the applicant would be in
position to Erie corn. stock. All of the securities which the Virginia Transportation
transport its coal more directly and efficiently to a territory
where much Corp. holds are in the hands of J. P. Morgan It Co. for safekeeping.
of that coal is now marketed, and to connections which it
does not at
The only facts before us concerning the procedure proposed by the applipresent reach by its own lines. Both the Chesapeake & Ohio and
the Pere cant for securing a majority of outstanding stock of the Pere Marquette
Marquette are operating on a sound dividend-paying basis.
Through are comprised in the statement on page 10 of this report. From this it is
increased interchange of traffic and economies in operation,
made possible evident that the prosecution of the plan is contingent upon reconsideration
by rearrangement of facilities under common management, both earriers
by the Nickel Plate of its refusal to extend the option on 174,000 shares,
should profit by the arrangement. We are convinced that as regards
the upon the applicant's present ability to purchase 50,000 other shares at a
Pere Marquette, the proposal is sound from a transportation standpoint.
base price of $110 per share, and upon further action of the board of
directors in fixing the terms and prices of acquiring additional stock. As
Proposal to Control Erie Not Demonstrated.
we said in our report in Nickel Plate Unification, supra, "tinder any cirWe are unable to find that the proposal to control the Erie is to the same cumstances the burden is upon
applicants to make an affirmative showing
extent free from criticism. The applicant has not demonstrated a
neces- that the terms, conditions and considerations of acquisitions and control
sity for control of the Erie because of lack of outlet for its coal traffic. are just and reasonable."
In the absence of a presentation In definite form
It has not shown the extent of demand for its coal at points on the Erie of the terms, conditions,
and consideration upon which the applicant pronot reached by its own lines, nor has it established the merits
of the poses to acquire a majority of the outstanding stock of the Pere Marquette,
proposal to utilize the Erie's route between Marion and Chicago
for a authority will be granted for the acquisition of certain shares at fixed
portion of its westbound business, except to the extent that the Hocking prices, and
for the purchase of additional shares e.t prices net to exceed
Valley and Erie would benefit thereby. If this route possesses manifest those
hereinafter named.
advantages to the Chesapeake & Ohio and Erie there should be no obstacle
Minority Committee Sought Denial of Applications.
to the making of a joint trackage agreement by them to provide for
the
operation here proposed. Such an agreement might well assist the
We are asked by the minority committee to deny these applications on
movement of westbound coal, pending the desirable betterment of the Chicago the ground that the proposal is a great speculative
enterprise rather than a
division of the Chesapeake & Ohio. The applicant used the tracks
of the transportation development. The committee has caused to be placed in
Norfolk & Western between Gregg and Valley Crossing for many
years the record a large amount of data upon the transactions of the Van Swerinuntil It became necessary to develop its own facilities between those
points. gene in transportation matters, their financial profits both realized and
There is no assurance that the applicant would be able to change
the realizable, and the control which they exercise over the various companies
routing of more of its coal than now moves over the Chicago division.
The involved in these proceedings and those indirectly related. We are also
testimony is that while formerly the routing of coal was left very
largely requested to take into consideration the managerial volley of the applicant
to the carriers, there has been an increasing diversion resulting from with respect to improvements and extensions
of its facilities and the
solicitation and that at present about one-half of the applicant's
coal probable influence of merger schemes thereon. In dealing with all these
traffic is routed by shippers. With the maintenance of existing routes, questions we must confine ourselves to
the essential requinments impoed
therefore, it cannot reasonably be expected that the applicant could reas- by the act. Management, per se, does
not come within our province. The
sume its former control of the movement of its coal. It may also be evidence showing personal and corporation
profits, use of company credit
doubted that the applicant would be able through solicitation to increase and control, and factors of similar character
has received attention in the
the movement of high-class traffic over its Chicago division adequately to degree which these matters have a bearing upon the
public interest in the
replace the loss of coal tonnage. Were it possible to do this, the advantake plan immediately before us. Not all of
the transactions leading to the
could be equally realized whether the coal traffic be diverted as the result proposed acquisition of control may be accepted
as necessary, or as justified
of corporate control or as the result of a trackage agreement. The diversion by the results to be attained, nor can they be rectified
by conditions
of eastbound business from the port of New York to the port of Hampton attached to our order.
Roads is also most uncertain. All of the projected routes which proponents
Legality of Operations of Subsidiaries Doubted.
of the plan contend would be converted from "tariff routes" to "service
The operations of subsidiary companies, notably the Special
routes" are in existence to-day and are capable of development. The
Investment
record offers little to show that the proposed control would affect in any Corp., organized by the Nickel Plate and the Virginia Transportation Corp.
by the Chesapeake & Ohio, which, in effect, pledge carrier assets and
way the large mileage of the Erie system east of Meadville, Pa.
incur
obligations for the carrier, are of a nature to raise grave doubts as to
their
Relationship of Chesapeake & Ohio and Erie Not Complementary or
legality in view of the provisions of section 20a. Again, the sale
of
Supplementary.
securities to the applicant by the chairman of its board and by
other
We do not consider that the relationship of the Chesapeake & Ohio and directors could have been done legitimately only when all the conditions
the Erie is complementary or supplementary. The Erie constitutes an east- as to original cost, etc., were made known, and we consider it to have been
and-west connection in contrast with the northerly extension provided by the duty of those directors, in the fiduciary relationship to the company
the Pere Marquette. The Chesapeake-Hocking lines, reaching from the sea- which they occupied, to stipulate that no personal profit accrue to them
board to Lake Erie, make contact with practically every important trunk In the transactions.
Among the acts less intimately connected with this
line in eastern and central territory, and are thus in position to distribute
case we find the
their coal both east and west over many connectiong lines. Control of the distribution of stock of the Chesapeake Corp. among the common stockErie by the applicant would tend to disturb this structure and to disrupt holders of the Nickel Plate in consideration of the transfer of certain
existing channels of traffic to a much greater extent than would its control Chesapeake St Ohio stock which had theretofore been purchased by the
of the Pere Marquette. To effect the proposed transportation alliance Nickel Plate with its treasury assets, including the proceeds of a large
through the acquisition of a majority of the Erie's capital stock would Issue of its refunding mtge. bonds. The Chesapeake Corp. was organized
in May 1927 in the State of Maryland, with 0. P. Van Sweringen as
involve a large additional expenditure.
President. It acquired 345,000 shares of Chesapeake &
Ohio common stock
No Exigency Exists at Present Time Necessitating Control of Erie.
originally purchased by the Nickel Plate and its subsidiary the Special
A. further objection to the present acquisition of control of the Erie by Investment Corp., and 255,000 shares
originally
purchased by the Vaness
the applicant is found in the fact that it would constitute practically an Co. The total comprises
a majority of the outstanding stock of the
allocation of an important New York-Chicago trunk line in advance of the applicant. An indebtedness
of $67.50 per share, carried by the 600,000
adoption of any general plan for the formation of competitive systems in shares when they were
transferred, has been provided for by the issuance
eastern territory. Although it may be said that the acquisition of control of $48,000,000 face amount
of Chesapeake Corp. 20-year 5% collateral
through the holding of capital stock would not be such a consolidation as trust bonds, secured by pledge
of the 600,000 shares of stock. As a conwould necessarily be permanent, there is no exigency in the affairs of sideration for this stock,
the Chesapeake Corp. issued its capital stock
either the Chesapeake & Ohio or the Erie which requires action at this ratably to the common
shareholders of the Nickel Plate and of the General
MAY 26 1928.]
FINANCIAL CHRONICLE
3201
In our report in Nickel Plate Unification, supra, we said:
"Every applicant(in unification proceedings) should 1183111ne the burden of making
reasonable provision in its plantfor the:possible incorporation of every connecting
short line now in operation In_the territormovered or to be covered by the proposed
grouping or unification."
The applicant's position in regard to short lines is that the proposed
acquisition of control will not change the existing situation but in the
event of unification or consolidation each short line will be considered
with a view to acquisition. Should the applicant feel that any short line
should not be acquired it is willing to submit to us the question, first, as to
whether or not the line should be continued in operation, and second, if
operated, whether it should be allocated to the Chesapeake & Ohio. Should
we decide that the line should be operated as a part of the applicant's
system, the applicant will endeavor to agree upon a fair basis for acquisition
or operation with the owner of the property, and in the event of failure
so to agree to refer the question to arbitration under the Federal Arbitration Act.
Although the applicant's view that the contemplated acquisition of
control will not be a unification or consolidation is technically correct, it
is nevertheless acknowledged to be a step toward that result. The probable
effect upon connecting short lines should be considered. Several of these
Shares.
placed in the record evidence tending to show that the continued
It is proposed to issue 595,024 additional shares ($59,502,400 par value) interveners
of their lines is necessary and in the public interest. Since it
of common capital stock, and to offer the entire amount at par for cash, operation
assumed that no present change in the business relations between
pro rata, to the holders of common capital stock of the applicant, to the may be
applicant and the short lines with which it connects is In contemplaextent of 50% of the par amount of their respective holdings as registered the
principal concern regards the future of the short lines connecting
upon the transfer books of the applicant on a date hereafter to be deter- tion, our
lines of the companies over which control is to be extended.
the
with
so
not
is
as
issue
the
of
portion
such
directors;
mined by the board of
in policy is more probable in their case as the result of the
disposed of to be sold for cash at not less than par. The applicant's Some change
in control of the principal carrier. Under proper circumstances we
financial program for 1927 and 1928 contemplates the expenditure of change
justified in conditioning our approval of a proposed acquisition
$115,731,825, part of which will be obtained from the proceeds of the would be
acquisition of the abort lines involved, or provision for the
proposed stock issue. This program includes the expenditure of $22,507,488 upon the
of such relations for their protection as the public interests
maintenance
expendithe
spent,
already
for Erie stocks, in addition to the $19,535,085
require.
might
of
capitalization
the
and
stocks,
Marquette
Pere
for
ture of $30,317,298
lines of
As above Mown, only three of the short lines connect with the
advances aggregating $23,711,985 made to subsidiary companies "pending
the Chicago, Attica & Southern the
permanent financing thereof." If these items be deducted from the total, the Pere Marquette. In the case of
public convenience
record does not permit a finding upon the question of
the carrier's immediate requirements are reduced to $39,195,164.
road to any trunk line or system is
As compared with this cash requirement, the applicant's estimated and necessity and no allocation of this
Arcadia & Betsey River is not at this time
receipts from operation during 1927 and 1928, less dividends of 10% on its desirable at this time. The
therefore does not come within our
common stock, are over $35,000,000. The excess of its current assets over engaged in interstate commerce and
Mackinac intervened solely for the purpose
its current liabilities as of Dec. 31 1926 was $12,751,456. In view of these jurisdiction, and the Detroit &
agreement made between it and the Pere
facts it is evident that a finding of necessity for an Issue of additional of placing in the record a certain
facilities at Bay City, Mich., to the end
capital stock by the applicant depends in substance upon the requirements Marquette covering the joint use of
Contractual relations of this kind
in connection with accomplished and proposed purchases of stocks of the that its rights thereunder be protected.
decision.
our
by
affected
be
not
will
Pere Marquette.
the applicant and
Not all of the short linos situated in the territory of
The applicant is authorized to issue not to exceed 200,000 shares of its
in the case now before us. Under
common stock for the purpose of providing funds to: (1) discharge the the Pere Marquette entered appearances
consideration will be given to each
indebtedness upon, and acquire, 16,600 shares of Pere Marquette stocks of the announced policy of the applicant
and if unification or consolidation of the
three classes now held by the Virginian Transportation Corp.; (2) acquire short line in this territory when
undertaken. In view of the statement
36,500 shares of Pere Marquette conunon stock from the Vaness Co. at the roads embraced in the application is
it is urged that the applicant
cost of such stock to that company, namely, $2,522,881; and (3) acquire that the plan is a step toward unification,
railroad which maintain
such other shares of Pere Marquette common stock as may be obtainable at Initiate an investigation of all the lesser lines of
those of the Pere Marquette
a price not to exceed $110 per share, or such prior preference or preferred direct traffic relations with its own lines or
them may be expedited.
stock as may be obtainable at a price not to exceed $100 per share. The to the end that a final and equitable disposition of
underWith respect to short lines, and all other rail connections, it is
expenditure of the proceeds under these terms will not acquire a majority
existing routes
stock interest in the Pere Marquette, but the applicant may, if found stood that, so far as lies within the power of the applicant,
carother
by
necessary, submit a suppletnental application for authority to issue additional and channels of trade and commerce heretofore established
the Pere Marquette will
stock for that purpose. A period of one year from the date of our order riers in connection with the Chesapake & Ohio or
traffic with all
is allowed for the carrying out of this program. The applicant may, be preserved, and existing gateways for the interchange of
however, if it sees fit, in the event it finds that it is unable to accomplish other carriers will be maintained.
the purchases of Pere Marquette stock on the terms herein fixed, apply Acquisition of Erie Not in Public Interest—Pere Marquette Acquisition
the proceeds, or such part thereof as may be required, to the discharge of
Approved.
its interest-bearing obligations, or to expenditures chargeable to capital
We find: (1) that the acquisition by the Chesapeake & Ohio Ry. Co. of
account and not previously capitalized.
contrbl of the Erie RR. Co., as proposed in the application, would not bThe issue authorized will rest upon the expenditures shown in the appli- in the public interest and the application for an order authorizing sue:
cation as having heretofore been made for additions and bettrements to the acquisition will therefore be denied; (2) that the acquisition by the Chess
applicant's property and its leased lines, on capital expenditures for the peake & Ohio Ry. Co. of control of the Pere Marquette Ry. Co. by purchaa
acquisition, construction, and extension of branch and spur lines, and to of capital stock, upon the terms and conditions and for the consideratiot
such extent upon the discharge and replacement of first lien and improve- stated herein, which we find to be just and reasonable, will be in thi
ment 20-year mortgage bonds as may be necessary in order that the public
interest and it will therefore be authorized; (3) that the issue o
aggregate of all shall equal the par amount of stock to be issued, namely,
$20,000,000, par value, of capital stock by the Chesapeake & Ohio Ry. Co.,
$20,000,000. The issue is not to be considered as deriving its primary to be
used in connection with the acquisition of control of the Pere Marsupport from the asset value of Pere Marquette stocks to be acquired, quette
Ry. Co. or for other purposes, under the conditions stated herein,
fairly
be
may
to
acquisition
such
assumed
the
strengthen
applialthough
will be (a) for lawful objects within the corporate purposes of that comcant's financial position. The expenditures here referred to have been pany and
compatible with the public interest, which are necessary or
adequately supported and verified by detailed statetnents furnished in
appropriate for or consistent with the proper performance by the carrier
acconlance with our requirements. The applicant's capital structure of
service to the public as a common carrier, and which will not impair
will permit the issue of additional stock in the amount which we have its
ability to perform that service, and (b) will be reasonably necessary
in
improved
thereby
be
will
respect
of
the
and
ratio of
determined,
and appropriate for such purposes.
capital stock to funded debt.
An appropriate order will be entered.
Fixes Price of New Stock at $150 Per Share.
Commissioner Porter, concurring, in part says:
We are of the opinion that the privilege proposed to be extended to regisIn the consideration of the important matter here before us, it is well tered holders of the applicant's stock to purchase the new dock at par and to have in mind as a background I few fundamental principles. Few
In an amount equal to 50% of the par amount of their present holdings persons, if any, seemingly realize and appreciate the very radical change
would result in imposing an unnecessary financial burden upon the applicant that was effected in the relationship heretofore existing between this
company. The fact that a corporation engaged in transportation has capi- Commission and the railroad systoms of this country by the act of Congress
talizable assets in sufficient amount to support an increase in securities effective Feb. 29 1920, or the tremendous grants of power to this Comdoes not, in itself, justify such increase and the prospect of increased mission therein contained.
earnings, the improvement in ratio of stock to funded debt, and other
This new policy and enumeration of powers have been well summarized
considerations which may favor the proposal, are not to be taken as con- and stated by the Supreme Court of the United States (Dayton-Goose Creek
issue
proposed
the
must
for
be
necessity
demon- Ry. Co. v. United States, 263 U. S. 456-478) wherein that court, speaking
trolling factors. The
strated and the terms upon which it is to be sold must be found reasonable. through the Chief Justice, said:
With full respect to the rights of the applicant's stockholders to receive
The new act 'peeks affirmatively to build up a system of railways prepared to
substantial benefits from the prosperity of the road, we do not believe handle promptly all the interstate traffic of the country. It aims to give the owners
that the offering of additional stock to them on the basis proposed would of the railways an opportunity to earn enough to maintain their property and
in such a state of efficiency that they can carry well this burden. To
be consistent with the public interest. As a further condition, the additional equipment
achieve this great purpose,It puts the railroad systems of the country more completely
common stock now authorized to be issued shall be offered to holders of than ever under the tattering guardianship and control of the Commission which
has to supervise their issue of securities, their car supply and distribution, their Joint
COMMOA capital stock, pro rata, at $150 per share, to the extent of one share
use of terminals, their construction of new lines, their abandonment of old lines,
of additional stock for each six shares of their respective holdings as rtes. and
by a proper division of Joint rates, and by fixing adequate rates for interstate
tered upon the transfer books of the applicant on a date hereafter to be commerce, to secure a fair return upon the properties of the carriers engaged.
determined by the applicant's board of directors. Such portion of
In addition to the grants of powers there enumerated, the court might
the issue as may not be so disposed of shall be sold for cash at not less well have added the entirely new and exceedingly important one of the
than $150 per share.
unification and consolidation of the railways of this country into a comPosition in Regards to Short Lines.
paratively limited number of railway systems. It was further provided by
Of the intervening short lines, the Big Sandy & Kentucky River and the this act that in bringing about this unification two important consideraMorehead & North Fork connect with the Chesapeake & Ohio; the New York tions were to guide this Commission. One was that the idea of competition
& Pennsylvania, the Prattsburg, the Mount Jewett, Kinzua & Riterville, heretofore the dominant policy of this country in all charraels of trade
the Arcade & Attica, and the Middletown & Unionville connect with the and commerce, was to be preserved. In order that this theory of compeErie; the Arcadia & Betsey River and the Detroit & Mackinac connect with tition might be effectually and successfully preserved, we were in unmisthe Pere Marquette; and one, the Chicago, Attica & Southern, connects with takable terms admonished that in bringing about these consolidations and
both the Chesapeake & Ohio and the Pere Marquette. Certain of these building up these new competitive units, they were to be built up into units
of as nearly equal power and strength as may be possible for us to do.
roads have still other connections.
Vaneas Co.
Securities Corp., the latter representing the Venetia Co. As the
majority of
holds a majority of the Nickel Plate's voting stock, and as a
persons
these
Sweringen,
Van
J.
its stock is in turn owned by 0. P. and M.
ownerhold control of the Chesapeake & Ohio by their direct and indirect
contemchip in stock of the Chesapeake Corp. It follows that the plan as
Marquette.
plated would extend this jurisdiction to the Erie and Pere
appliAs a matter of fact, the aggregate of Erie stocks now owned by the
system.
that
cant and by the Vaness Co. constitutes virtual control of
Financial Manipulation of Railroad Properties Should Not Be Tolerated.
Financial manipulation of great railroad properties as an accompaniment
of acquisition or consolidation under the law should not be tolerated.
Unification of existing lines should have its inception primarily in the
traffic and transportation conditions of the territory served. If the regulation of railroads, with especial reference to their unification and capitalization, can be effectively and justly administered under the acts passed by
Congress for that purpose, these projects should be so controlled and governed as to be made productive of large benefits in transportation.
Approves Issuance of 200,000 C. & 0. Stock—Sets Price of Pere Marquette
3202
FINANCIAL CHRONICLE
1:2e.
This new policy of consolidation here briefly alluded to, in the face of lodged against the proposed plan by any of these officials
representing
violent controversy and dispute, has been allowed to remain unaltered by States whose people are most vitally
and directly Interested in this scheme.
Congress with no actual attempt worthy of the name to repeal it.
The I can not presume that all of those in authority would be so derelict in
only changes seriously proposed in Congress seem to be those thought their duty as to fail
to be represented and make vigorous protest if they
necessary to strengthen this policy and to place in this Commission's as officials had any strong feeling
that this was inimical.
bands additional authority to more effectually and speedily bring about
Eight years of what is now history certainly must be convincing to
this predetermined policy.
everyone that the policy of consolidation of railways determined upon by
It may be that lurking in my mind as an individual may be serious mis- Congress can not be achieved over night. It
is inevitably at best a slow
givings as to whether or not the ultimate accomplishments of this new toilsome process. This scheme here proposed
is at least a step looking in
scheme of things will bring the hope for benefits to the public that its the direction of carrying out the mandate
of Congress which it is our
sponsors so fondly anticipated. But to my way of thinking, that has duty faithfully to execute.
nothing to do with the problem confronting us as the administrative agent
Chairman Campbell, dissenting, in part said:
of Congress created for the purpose of carrying out legislative powers and
I dissent from the conclusions of the majority that the acquisition by
policies established by it. I am convinced that it is our duty, irrespective
of individual opinions and belieefs, with all of the ability at our command the Chesapeake & Ohio fly. Co. of control of the Pere Marquette fly. Co. by
to earnestly strive in sincerity and truth to carry out this declared program purchase of capital stock will be of advantage to the public. The report
is not convincing that such advantage has been shown.
of Congress placed in our hands as its servants for its execution.
With these things in mind, let us approach the question here immediately
Commissioner Eastman, dissenting, in part said:
at hand. Leave is sought of us for the Chesapeake dr Ohio fly. Co. to
This application is brought under the provisions of paragraph (2) of
purchase substantially stock control of the Pere Marquette Ry. Co. and the
section 5 of the act. No consolidation is involved, for by the plain terms
Erie RR. Co. The majority of this Commission grants this application in of
that paragraph it does not apply to consolidations but only to acquiso far as it concerns the Marquette on terms and conditions set out by it,
sitions of control. Our duty is clear; it is to determine whether the
but refuses the authority as applied to the Erie. I concur in all that acquisitions
proposed are "in the public interest" and, if we 80 find, to
the majority says and authorize its holding, save and except that I would
authorize them upon such terms and conditions as we believe to be "just
go still further and under like proper terms and conditions authorize the
and reasonable". In determining what is in the public interest, we must
purchase of the Erie. The refusal of the majority is based almost entirely be guided
by what is shown of record, and not by what we may think
upon the fact that it does "not consider that the relationship of the Chesathat Congress may think is in the public interest.
peake & Ohio and the Erie is complementary or supplementary". la my
So far as acquisitions of control are concerned, Congress has not underjudgment this entirely overlooks the very fundamental fact that, assuming
taken to define the public interest Nor, indeed, has it done so with
the Chesapeake avails itself of the authority herein granted and purchases
respect to consolidations, whatever may be the general impression to the
the stock of the Marquette, the relationship of the Erie should not then
contrary. Paragraph (4) of section 5 requires us to prepare a plan for
be considered only as concerns the Chesapeake & Ohio, but also ii the
the consolidation of the railway properties of the United States into a
relationship that it bears to both the Chesapeake and the Marquette. It is
"limited number" of systems, whatever that may mean; but after such
conceded by all that the scheme proposed by the applicant is an interplan has finally been prepared it is provided by paragraph (6) that we
mediate step looking to the ultimate consolidation of these three and probably
shall not thereafter authorize any consolidation unless we find it to be in
additional carriers into one system. I do not think it is necessary at this
harmony with the plan and unless we also find, after a public hearing,
time that this ultimate proposal need be considered in the light of a sothat the public interest will be promoted thereby. Clearly the direction
called four-system plan, live-system plan, six-system plan, or any other
to prepare a consolidation plan was not intended as a declaration that all
numbered plan, but must at least be considered in the face of the plain
or any consolidations would be in the public Interest, for Congress very
mandate of Congress that should govern us. If the purchase of the stock
carefully provided that this fact must be established of record to our
in the Brie be permitted, and at a later date it should be seen or detersatisfaction in each particular case.
mined that it does not fit into our ultimate plan of consolidation, the perIn Control of Virginian Ry., 117 I. C. C. 67, we said, very properly,
mission that would be granted in this case would not by any means be
that applications for authority to acquire control "must be supported by a
irrevocable or irremedial.
clear and strong showing of public gain" and that if serious doubt exists
I am constrained to believe, despite the judgment of my brothers, that
regarding the wisdom of what is proposed, "that doubt must be resolved
the Chesapeake and the Erie considered in any of themselves, would be
against the applications." So far as the Erie is concerned, the majority
benefited by this step toward consolidation. The Chesapeake is admittedly
find that the necessary clear and strong showing of public gain has not
one of the great coal carriers of this country. It would be benefited in at
been made. In the case of the Pere Marquette, they apparently find that it
least two material respects by acquirement of the Erie: First, by the
has been made. With this latter finding I disagree.
additional route afforded it via Marion to Chicago, thus obviating the
The majority do not state with any clarity and strength the advantages
expenditure of large sums of money necessary to perfect the present route
which they believe will flow from acquisition of the Pere Marquette. The
between Cincinnati and Chicago; and secondly, in affording an outlet for
impression is left that they approve the acquisition largely because they
bituminous coal produced an the Chesapeake to the numerous industries
gee in it no clear public disadvantage. But that is not the statutory test.
located on the Erie east of Marion, at the same time affording these large
The public advantages claimed by the applicant seem to center in the
manufacturing industries located on the Erie east of Marion a more ready
propositions that it will gain a better "outlet" for its coal in Michigan
access to the markets east of Cincinnati on the Chesapeake. Increased
and that single-line hauls will be substituted for joint-line hauls, with
traffic with increased revenues and increased facilities of transportation
better co-ordination of train service.
ought ultimately to result in increased economies with the resulting benefits
Any idea that the Chesapeake & Ohio is in need of outlets for its coal
in the way of reduction of freight rates.
in Michigan or elsewhere is quite baseless. There is no evidence that this
As I have said, however, to my mind the principal reason overlooked by
coal
does not move with the utmost freedom to all parts of the country,
the majority of the Commission and which appeals to me, is the harmonious
way in which the Erie fits into the combined Marquette-Chesapeake system. including Michigan, to which it might reasonably be expected to move.
The Marquette reaches large markets in the West in the State of Michigan The traffic has increased with amazing rapidity. It is not shown that
and across Lake Michigan by ferry, those in Wisconsin and farther west. there is any lack of throrgh routes and joint rates or that any connection
All of these will be afforded a choice of gateways to the East by the way of has attempted to obstruct the movement. On the other hand, it is quite
possible that with the Chesapeake & Ohio in possession of the Pere Marthe Marquette through Buffalo to New York over the Erie, or by the
way quette there might be less freedom of movement
All practicable and
of Toledo over the Hocking Valley to Marion and then east over the
Erie.
All shippers in the great Mississippi Valley tributary to this new proposed reasonable routes, broadly speaking, are now open to Michigan destinations,
and
the
coal
is
free
to
move
over
whatever
route
may
be most direct,
system would have the choice of reaching the Atlantic seaboard either
expeditious, and convenient to the shipper. Following the acquisition of
through the port of New York or through Newport News, thus having
the the Pere Marquette, the routes via that line will
at least be favored, and
choice of two Atlantic ports as is afforded by several other of the
large it may be that various other routes, more direct and convenient, will
be
eastern trunk lines now reaching the Atlantic seaboard. A glance
at the closed to protect the long haul over the new system. Such diversion of
map of these three systems as they would thus be brought together
is, to traffic to what may often be circuitous and less economical routes might
my mind, after all the most convincing and persuasive argument
of how be to the advantage of the Chesapeake & Ohio and the Pere Marquette and
admirably they fit together.
The unification of these three systems is also,in my judgment,in thorough yet not to the advantage of shippers or of the national economy. The
obedience to the plain mandate of Congress for us to assist in the building figures suggest that more Chesapeake & Ohio coal now moves into Michigan
up of as nearly equal competitive systems as we can. This system, if per- over other connections than over the Pere Marquette. The majority say
mitted, would in number of miles under operation and in other respects that they understand that existing routes and channels of trade and
compare favorably with the great New York Central, Baltimore & Ohio, commerce will be maintained, but do not require this by their order. And
and Pennsylvania systems as they now exist. It is manifest to me that the even if they are maintained, there are ways of discouraging the movement
of traffic ovcr routes which are not favored.
permission of this step toward unification of these three railways would
It is a mistake to assume that consolidations or acquisitions of control
not militate in the slightest against the further building up of one or more
always tend to promote freedom of traffic movement. They may have an
additional systems, if ultimately deemed expedient, to compete with the
opposite effect. At the hearings on the consolidation plan this was why
three systems already named and the fourth that would be herein in a
so many New England shippers, for example, were opposed to consolidameasure established.
tion of New England railroads with connecting trunk lines. Once the
At present the Erie lies between the powerful New York Central system
traffic of these shippers passes the Iludmon River, it may now MONT at
on the north and the powerful Pennsylvania system on the south. 'Unless will over a
number of competing routes, whereas under a trunk-line conaided by other railways, is it not in the position of being between the solidation plan the shippers fear that the tendency
would be to discourage
upper and lower millstone created by these two systems where it is apt such freedom of movement. So far as economy
and efficiency of transultimately to be ground into pieces? I find in the opinion of the majority portation are concerned, it has not, I think, been
shown that the public
of my brethren no constructive indication of any kind of what is to become Interest has anything to gain from the Pere
Marquette acquisition here
of the Erie in the light of its refusal in this case.
proposed.
I am further persuaded to my view by the comparative lack of
But a broader question is involved. The Pere Marquette is a prosperous
opposition to the proposed plan. In the Chesapeake itself, out of over railroad in no need of financial help, and
apparently it is well and ably
1,000,000 shares of stock issued, objection is made in behalf of approxi- managed. Aside from any direct and
immediate transportation effect, will
mately 126,000 shares of stock. It is difficult for me to imagine any public benefit be derived from placing
this road in the hands of the interests
important and far-reaching proposition on the part of a majority of the which now dominate
the Nickel Plate and the Chesapeake dr Ohio? It
shareholders of any corporation that would have so few dissenters in pro- seems to me that harm rather than
benefit is likely to result. The policies
portion to the amount of stock issued as is here presented.
and practices of these interests in many important respects have not been
Short line systems that have appeared in this case, have done
so, not in such as to inspire public confidence, and were the occasion for sharp
opposition to this plan of unification on proper terms and conditions,
but criticism in the Nickel Plate Unification case. Not all was there said
very largely, if not wholly, for the purpose of urging upon this
Commission that might have been said. In this connection I refer to my dissent in
that in the proposed unification their rights be considered and
protected. the Cleveland Passenger Terminal case, 70 I. C. C. 659, 662-671, which
This, of course, should be done, and this Commission even at present
is not was not only justified by the record in that case but has been more than
lacking in power by proper orders and conditions attached to this
proposed justified by the further evidence with respect to the same matter in the
merger to see, as properly it should, that all of the interests of the
inter- Unification case. The record deals with other questionable transactions,
vening short line carriers are protected.
but without going into such details it will be sufficient for present purNotice of this proposed scheme was given to those in authority in all
of poses to direct attention to certain aspects of the methods which these
the States which this more than 7,000 miles of railway traverses and it is interests have followed
in the promotion and financing of their various
• circumstance worthy of consideration, that not a single protest has been railroad unification
projects. These projects have been characterized by
MAT 26 1928.]
FINANCIAL CHRONICLE
the creation and use of a maze of dummy corporations. A partial list
follows:
Vaness Co.
Special Investment Corp.
Chesapeake Corp.
General Securities Corp.
Virginia Transportation Corp.
Pere Marquette Corp.
Nickel Plan"'Securities Corp.
Clover Leaf Co.
Western Co.
Dummy corporations are legal perversions, commonly used for purposes of
concealment or evasion. Without attempting to follow through the tangled
operations of those above listed, it is reasonably clear that they have
here been used for at least two interrelated purposes:
1. To facilitate shoe-string financial operations on a very large scale.
These operations were started in the original Nickel Plate acquisition with
the help of the New York Central, a help which was extended again in
the Lake Erie & Western acquisition and, to the great advantage of the
promoters in a time of need, in the Cleveland terminal project. They have
since been carried on with the help of the New York Central bankers, and
with the credit of the Nickel Plate and the Chesapeake & Ohio as the cornerstone of the structure, to the great personal profit of individual directors
of those carriers.
2. To escape supervision by this Commission. Stocks bought in the
process of acquisition by the Nickel Plate and Chesapeake & Ohio have been
transferred to dummy corporations so that they might be pledged as collateral for further loans for the purpose of buying further stocks. If the
stocks had remained in the possession of the Nickel Plate and the Chesapeake & Ohio, those carriers could not have borrowed money with the stocks
as collateral without our approval under section 20a of the act. The
theory is that by the creation and interposition of dummy corporations
such supervision can be escaped. Whether this theory is correct remains
to be seen, but the purpose and intent admit of no doubt
That this sort of thing is in the public interest or ought to be encouraged
I can not believe. Nor is the method of bringing about railroad unifications by operations in a stock market favored by such operations or the
prospect of them for the general good, however profitable it may be to
individual operators. The result is to divert the credit of railroad companies, which ought to be conserved for transportation purposes, to the
ends of speculation and private profit. The unifications which this method
is likely to accomplish are those which offer the greatest opportunity for
speculative profit rather than those which offer the greatest opportunity
for transportation advantage. The consolidations which the country needs
are more apt to be those which offer so much prospect of mutual benefit
that they can be agreed upon by direct negotiations of boards of railroad
directors and accomplished through exchange of shares without prior
speculative operations.
This suggests another point. These applications and our action upon
them have many of the characteristics of stage thunder. In the Nickel
Plate Unification case we were asked to approve a union of the Nickel
Plate, Chesapeake & Ohio, Erie, and Pere Marquette. We refused to
approve it. We are now asked to approve a union of the Chesapeake & Ohio,
Erie, and Pere Marquette, and the Nickel Plate has apparently
disappeared from the picture. In reality, however, the Nickel Plate and the
3203
Chesapeake & Ohio are now certainly under common control, the Erie its
probably under the same control, and perhaps the Pere Marquette. This
situation will continue after our action herein, unless something is done
about it. That the Nickel Plate, Chesapeake & Ohio, and Erie are all in
active competition is plain. The common control of these three properties
should be considered in a Clayton Act proceeding.
One further comment is suggested by the separate opinion of Commissioner Woodlock. Public regulation is in its very essence interference
with private management, but such interference is founded upon the
public interest and ought not to occur where no such interest is involved.
Our power over stock issues under section 20a is plenary, and we are
required by that section to snake certain findings before we approve such
issues. One finding is that the issue is "reasonably necessary and appropriate for" a lawful object, and another is that the issue is "necessary or
appropriate fur or consistent with the proper performance by the carrier
of service to the public as a common carrier" and that it "will not impair
its ability to perform that service". It is difficult to see, for example,
bow an issue of 300,000 shares of stock at par is "reasonably necessary"
when an issue of 200,000 shares at 150 can be made and will serve th.
same purpose. And manifestly it is not in the public interest that a carrier
should issue more stock than is "reasonably necessary", for if it does, its
further financing by issues of stock at not less than par is likely to be
Impaired to the detriment of the public which it serves. Nor is the ability
of the carrier to declare whatever amounts in dividends its resources permit
in any way interfered with by what is here done We are following,
under the plenary provisions of section 20a, what has been the public
policy and practice in the Commonwealth of Massachusetts for a great
many years, to the advantage, according to my observation, not only of the
public but of the companies themselves.
Commissioner Woodlock, dissenting, in part said:
I have cast no vote and express no opinion upon the question of acquisition
of Erie and Pere Marquette stock by the Chesapeake & Ohio. I dissent,
however, from the dental of the latter's application to issue stock to its
stockholders at par.
The power of directors to determine what dividends shall be paid on a
corporation's stock is as nearly plenary as any power can nowadays be.
Its exercise is one of the most essential functions of management and has
been uniformly so treated by the courts. Stock "rights", as they are
commonly termed in the financial district, are by their nature the same
thing as dividends and directors have the same power with respect thereto.
If a company has need for capital and if its directors determine to raise
it by sale of new common stock to stockholders pro rata they have the
right to determine at what price stockholders shall have opportunity to
subscribe thereto. The matter is one which concerns stockholders alone.
As the law stands no question of "public interest" arises. The price at
which the new stock is sold does not affect rates or service nor, obviously,
does it affect the solvency of the company. It is a matter of intra-corporation policy pure and simple, and with such a matter we have no legitimate concern. We have stated more than once that regulation aid management are two different things and that the law has not made us
managers of the carriers. To the extent that we arrogate to ourselves the
powers of management we are sabotaging the law that it is our duty to
administer, and I can not readily Imagine a greater offense by us against
the real "public interest" than this.
Indications of Business Activity
STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, May 25 1928.
Trade was a little better with more favorable weather in
some parts of the country, though over much of the United
States during most of the week it has still been unseasonably
cold. Retail trade has not improved very much, although
latterly it has been warmer at the Northwest and the Southwest and this has caused some increase in sales of clothing.
The straw hat trade is hurt by cool weather. So also as to
dry goods. At times overcoats have been worn in New
Orleans and part of Texas and hail storns have killed men
and animals in Texas. The cotton crop is still late, partly
on account of cold nights. The season in the main is backward and there is an absence of the oldtime spring activity
in general trade. Rains in the Northwest have latterly
helped the spring wheat crop. Grain has advanced and
cotton has latterly recovered a portion of a decline in prices
which occurred early in the week due to rains in Texas and
a generally better outlook for the crop. As to general merchandise buyers have adhered for the most part to the policy
of buying only in small quantities and they resist any attempt
to advance prices. Steel output has decreased with demand
as a rule small, and prices seemingly inclined to weaken
with the output evidently still too high and the automobile
trade about the only consumer disposed to buy with any
freedom. Pig iron has been dull and evidently tending downward. English iron is being shipped to Milwaukee. Copper
has advanced with a good business at home and abroad;
brass goods have advanced.
Automobile employment is up to a new altitude namely
256,497 at Detroit against 224,568 a year ago and 245,440
in 1925. There was a gain there last week of 533 over the
previous week and an increase of 32,462 over a year ago as
well as 11,590 over 1926. This is one of the brightest features standing out in striking relief against a rather somber
background. Texas trade reports are rather better because
of the breaking of the drought. Lumber in the Northwest.
has advanced 50 cents to $2 a thousand feet following curtailed output of fir lumber in a five-day week. The consumption of most goods is reported to be large, yet new
business as already intimated is disappointing. This has
inevitably reacted on various branches of manufacturing
trade. Naturally this has in turn reacted on the buying
of raw material; that is kept down. It all tends to a curtailment of production in mills and factories. Cotton goods
have been quiet and at Fall River the curtailment of print
cloth output, it is said, approximates 80%. Prices of cotton
goods have now and then weakened a little; cool weather
has prevented a normal business. Raw cotton has declined
3 e, on better weather in the belt, aside from cold
to 4
nights, and with crop prospects in general improving. Today there was a rally on a stronger technical position, reports
of low minimum temperatures, weevil, the need of much replanting,(to., so that the decline for the week was nearer a
quarter of a cent on most deliveries. The whole cotton belt
needs hot dry weather.
Wheat advanced 34 to 4c., owing to dry weather in the
Northwest and in 'Canada, a rather sharp decrease in
the American visible supply and some unfavorable crop
reports from Europe because of a severe winter and a late
coldispring. Export business has not been large, but the
European demand, it would seem, may easily increase at
any time. A strike in Argentine also tended to strengthen
wheat prices. Later in the week came some reaction in
wheat prices owing to better weather. Corn advanced
2 to 3c. owing to indications of a short crop, following the
last short yield, a good cash demand, the smallness of
country offerings and the smallness also of stocks on the
farms. Part of the rise was lost. Oats advanced with
good cash premiums and a visible supply only about a third
as large as that of a year ago. Rye advanced with wheat,
and also because of none too favorable crop reports from
the Northwest.
3204
FINANCIAL CHRONICLE
Sugar has advanced of late on a much better demand from
refiners who are having a larger sale for their product. Cuba
is marketing its crop with no little skill and things in this
branch of trade are expected to brighten further as the
summer approaches and the maximum of the consumption
of the year is reached. Coffee declined nearly,a cent owing
to heavy liquidation following lower Brazilian markets and
reports of the illness of the President of Brazil. Perhaps
some tightness of money in Brazil was not without its effect
on coffee prices, according to the usual economic law. It
is also said that consumers in this country are somewhat
better supplied than they were recently. To-day came a
noticeable rally however on covering of shorts and reports
that the Executive head of Brazil was in no serious danger
after an operation. But the spot trade for the time being
is slow. That is a fact beyond dispute. Rubber has advanced
here roughly Yi to 1 cent as something of a natural rally
from recent depression on upturn in which the markets at
London and Singapore have taken part. The coal trade at
the East has been slow, although at the West business has
been on a rather larger scale. Carloadings have increased,
partly owing to larger Lake ore shipments, but the total is
still smaller than that of 1927 and 1926, not only for the week
and the month, but also for the year thus far. There has
been a noticeable advance in Chinese currency, coincidentally
with a sharp rise in silver. The Manchester sales of cotton
goods to China have recently increased, while at the same
time reports have been rather persistent that the Chinese
were boycotting Japanese goods. But the English trade in
cottons with India is disappointing. One of the events of
the week, however, is that British spinners of American
cotton have given up the idea of cutting prices and increasing hours, in the presence of what looked like a certainty
of a strike or lockout if they had persisted in this program.
Wool of the new and finer grades has sold on a fair scale
at firm prices. The London auction sales of wool have
closed, after having been carried on at prices in the main
firm. Raw silk has been rather weak with trade not at
all brisk. In broad silks trade has been largely confined to
fall lines. In the tobacco trade the production in April was
smaller than in the same month last year, owing apparently
to shorter working periods, while the output of cigarettes
fell below that of a year ago for the first time in many months.
An interesting incident in the flour trade is that of the Pacific
Coast is shipping flour to the markets of the Central West.
Stocks have had sharp ups and downs during the week,
but to-day advances distinguished very much of the trading,encouraged by a decrease in brokers loans of $46,000,000,
the first in 11 weeks. Led by a rise of 12 points in Radio
there were noticeable advances to-day in some motor stocks,
Studebaker going to a new high, though General Motors
lagged, while various industrial shares rose 23/i to 4 points
followed by metal shares, though steel shares, like railroad
shares, were slow. Full five hours trading ending at 3 p. m.
will be resumed on Monday, May 28th. There have been
many complaints of a loss of business from closing at 2 p. m.
Call money was still at 6% and time loans 53"%. A backward season on the whole still retards general trade. The
weather was better for grain and cotton crops. Bonds were
quiet. London to-day was firm and Paris irregular.
Fall River, Mass., has found trade very dull. The
curtailment there will soon reach 80%. At Lawrence,
Mass., the Pacific Mills are operating part of its cotton
division and print works nights there, as well as at Dover
and Columbia. The company's worsted section is not
operating much better than 45%. The company's Lyman
mill, which makes sheetings, is operating at abot150%
of capacity. New Bedford, Mass., wired that a mass
meeting of the merchants and business men of the North
End was held for the purpose of ending the strike. There
were no discussions of the merits of the controversy, but
emphasis was laid on the importance of putting an end
to the struggle, and a committee of five was formed to
devise a definite plan of action and get the two principals
of the controversy together, if possible. At Lowell, Mass.,
the Boott Mills, cotton manufacturers, will not cut wages
10%. The mills are about the busiest in Lowell and have
been having a good business right along. Orders for
toweling from chain stores along with other orders keep
the plant at capacity.
At Lowell the Suffolk division of the Nashua Manufacturng Co. which has been closed down for several weeks has
esumed operations in manufacturing blankets. The comany's Jackson Mill at Nashua is closed. Despite this
[voL. 126.
fact more than 2,000 operatives are at work in the
Nashua Mills at Nashua, N. H. The Talbot Mills at
Billerica are filling a large Government order for uniform
cloth. The outlook at the plant of the Lawrence Manufacturing Co. is said to be satisfactory. Knit goods are
manufactured and they are 700 operatives. At Manchester,
N. H. overtime work is the rule in the plait of the Arrow
Needle Co. organized a year ago. Knitting needles are
manufactured and considerable new equipment has recently
been installed.
At Adams, Mass., the Adams Woolen Co., which reopened
after being closed for six months, is now operating at close
to capacity. At Rochester, N. H., the Gonic Manufacturing Co., worsted manufacturers, began operations on
the 21st inst., an announcement which was received with
much satisfaction. For some time the plant had been running on part time. Charlotte, N. C., advices stated that
there was a broader inquiry for yarns, but business is comparatively slow in devloping. At Kings Mountain, N. C.,
the Cora Mills have closed down with the hope of resuming
operations in the near future.
At Manchester, England returns on the wage reduction
ballot showed a failure to obtain the necessary 80% of the
members of the Federation of Master Cotton Spinners. The
association has decided to take no further action for the
time being. The general trade received the decision with
feelings of relief. Divsion of the vote was as follows: Section
spinning American cotton: For wage cut 66.68%; against
24.10%; not replying 9.22%. Egyptian cotton section:
For cut, 28.39%, against 64.50%; not replying 7.11%. In
other words there will be no Manchester lockout or strike.
Japanese business is encouraging, despite disturbed conditions in China, according to cables to the United States
Department of Commerce. Yarn exports experienced further
declines in April, but production increased from 194,000
bales in March to a few hundred thousand bales in April.
It was cool and wet here early in the week. It was unseasonably cold at the South, with some heavy rains on the
22nd and it was 51 to 64 with minimum temperatures in
parts of the South as low as 44 to 50. At Boston it was 56
to 70, Chicago 54 to 70, Cincinnati 60 to 82, Cleveland 58 to
64, Detroit 58 to 76, Kansas City 52 to 78, Milwaukee 54
to 78, Minneapolis-St. Paul 52 to 82, Montreal 50 to 72,
New Orleans 66 to 74, Omaha 50 to 80, Philadelphia 56 to
74, Phoenix 68 to 98, Pittsburgh 56 to 78, Portland, Me.,
46 to 48. On the 23rd inst. it was 51 to 66 here, 50 to 56
in Chicago, 64 to 72 at Cincinnati, 50 to 54 at:Cleveland,
78 to 82 at Minneapolis, 62 to 70 at Philadelphia, 48 to 52
at Montreal. It was clear and cool at the West and cool
and cloudy in the East and abnormally cool at the South
and rainy in parts. On the 24th inst. New York was 50 tO
56 degrees; Boston 46 to 50, Philadelphia 48 to 64, Chicago
42 to 68, Cincinnati 60 to 68, Milwaukee 52 to 78, Cleveland 48 to 56, Minneapolis 62 to 84, Kansas City 62 to 86.
Today it was 52 to 62 degrees here and the forecast is for
fair weather tonight and tomorrow with moderate temperatures.
Nationwide Survey of Retail Credit to Begin at Baltimore Under Auspices of U. S. Department of
Commerce.
Another step in the campaign toward the elimination of
waste and inefficiency was announced May 21 by Dr. Julius
Klein, Director of the Bureau of Foreign and Domestic
Commerce, Department of Commerce, in the form of a decision to undertake a nation-wide retail credit survey to
begin immediately in Baltimore. The work will be carried
on under the joint auspices of the Department of Commerce
and the National Retail Credit Association, with a membership throughout the country of more than 18,000. According to J. R. Hewitt, First Vice-President of the National
Retail Credit Association, retail sales now approximate
$40,000,000,000 a year, 60% of which involve credit in some
form.
The Baltimore questionnaire, it is stated, is in the nature
of a preliminary test and it will serve as a basis for a
country-wide questionnaire to be sent out later in the summer. Baltimore members of the National Retail Credit Association are urging the retailers to fill in the questionnaire
as completely as possible. The National Retail Credit Association asked the Department to undertake the survey,
being convinced on the basis of its intimate knowledge of
credit conditions, that there is a serious lack of reliable
Information regarding credit and consequently many con-
MAY 26 1928.]
FINANCIAL CHRONICLE
elusions are being reached which may be false and even dangerous. It is also felt that information of this type should
be collected by a governmental agency so that the results
can be made readily available to every one on an impartial
basis with absolute assurance that the separate returns of
firms and individuals will be held strictly confidential.
The principal questions asked are based upon three major
subjects-cash transactions, open credit, and deferred or
installment payments. Other questions relate to the monthly
balance, collections, bad debts, and the detailed administration of credits. Information of the type indicated, if adequate returns can be secured from the country as a whole,
will be of substantial importance in stabilizing business. It
will not only be instrumental in assisting the merchant to
decrease the losses associated with a large proportion of
to-day's credit transactions but will enable him to pass on
the resultant gains to the consumer in the form of lower
prices.
Loading-of - Railroad Revenue Freight Reaches'YOne
Millio
-n-Cars Per Week7
--Still Below Previous Years.
Loading of revenue freight reached the million car mark
for the first time so far this year in the week ended on May
12, the Car Service Division of the American Railway
Association announced on May 22. Total loadings for that
week amounted to 1,001,983 cars. Compared with the
preceding week, this was an increase of 22,321 cars, due
principally to the heavier movement of ore, although there
was also an increase in the number of ears loaded with coal
and forest products. Small decreases compared with the
week before were reported in the loading of all other commodities. The total for the week of May 12 was a decrease,
however, of 27,441 cars below the same week in 1927 as well
as a decrease of 27,765 cars compared with the corresponding
week two years ago. Particulars are given as follows:
Miscellaneous freight loading for the week totaled 396,445 cars,
an increase
of 1,844 cars above the corresponding week last year and 9,867
cars over
the same week in 1926.
Coal loading totaled 159,714 cars, a decrease of 3,307 cars
below the same
week in 1927 and 7,964 cars below the same period two
years ago.
Grain and grain products loading amounted to 42,106 cars, an
increase
of 1.881 was over the same week last year and 2,403 cars
above the same
week in 1926. In the western districts alone, grain and
grain products
loading totaled 28,141 cars, an increase of 4,365 cars
above the same week
in 1927.
Live stock loading amounted to 27,018 cars, a decrease
of 2.138 cars
below the same week last year but 554 cars above the same
week
1926.
In the western districts alone, live stock loading totaled 21,337incars,
a
decrease of 769 cars compared with the same week in 1927.
Loading of merchandise less than carload lot freight totaled
261,082
cars.
a decrease of 1,053 cars under the same week of 1927
and 6,202 cars under
the corresponding week two years ago.
Forest products loading amounted to 67,138 cars, 3,856
cars below the
same week last year and 8,865 cars under the same week
in 1926.
Ore loading totaled 38,249 cars, 20,135 cars below the
same week in 1927
and 15,992 cars below the same week two years ago.
Coke loading amounted to 10,231 cars, 677 cars below
the same week in
1927 and 1,566 cars below the corresponding week in 1926.
The Central western and Southwestern were the only
districts to report
Increases in the total loading of all commodities compared
not only with
the same week last year but also with the same period two
years ago.
Loading of revenue freight in 1928 compared with the two
previous years
follows:
1928.
1927.
1926.
Four weeks inJanuary
3.447,723 3,756.660 3,686,696
Four weeks InFebruary
3,589,694 3,801,918 3.677,332
Five weeks inMarch
4.752,031 4,982,547 4,805,700
Four weeks inApril
3,738,295 3.875,589 3.862,703
Week ended May 5
979,662 1,024,761
996.216
Week ended May 12
1,001,983
1.029,424
1,029,748
Total
17,509.388 18.470,899 18.058.395
Trend of Business Profits in 1928.-First Quarter
This
Year Shows 7% GainlOver Last Year According
to National Bank of Commerce in New York.
In surveying the trend of 1928 profits the
National Bank
of Commerce In New York says:
3205
Earnings of 27 public utilities during the first quarter amounted to
$88,000,000 compared with $77,000,000 last year, a gain of 14%.
The net operating income of 186 class I railroads during the first
quarter was $217,000,000, a decline of 4% from the figure of $226,000,000 for the first quarter of 1927.
Life Insurance Sales in April Show Slight Loss-Continued Increase for Year to Date.
A total volume of over $769,000,000 of ordinary life insurance was purchased in the United States during April.
During the first four months, this year has proved favorable
for most reporting United States and Canadian companies.
52% of these companies recorded increased production for
April over their 1927 records. The foregoing figures have
just been issued by the Life Insurance Sales Research
Bureau and include the reports of 81 companies having in
force 90% of the total life insurance outstanding in United
States legal reserve companies and reporting the production
of new paid-for ordinary insurance exclusive of revivals,
increases, dividend additions, reinsurance from other companies, and group insurance. The gain for the whole country amounts to 2% for the year to date over last year's
record. Most sections in the United States showed increased
production during this period, says the Bureau, under date
of May 18; its survey of the various sections of the country
follows:
NEW ENGLAND.
The New England States as a whole showed excellent records for the
fourth month of this year with a gain of 6% over last April's records.
Maine and Connecticut lead the section with monthly gains of 35% and
16%. A gain of 7% is recorded during the first four months of this year,
Maine leading with a 24% increase. For the twelve months just ended,
the New England section increased 1% over sales in the preceding twelve
months.
MIDDLE ATLANTIC.
Sales in the Middle Atlantic section show a slight loss over last April's
volume. New Jersey shows the only gain for the month with a 5% increase.
The record for the first four months of this year is practically identical
with the sales over the same period in 1927. New Jersey leads both for
the year to date and the twelve-month period just ended.
EAST NORTH CENTRAL.
Ohio and Wisconsin are the only States in this section to record increased
production over last April. A 5% loss is reported by the section as a
whole. The year-to-date gain of 1% is shared by all states except Michigan.
A gain of 2% is reported for the twelve-month period ending this month,
and is shared by most of the states in the section, Michigan again recording
a loss.
WEST NORTH CENTRAL.
North Dakota leads this section of the country with an 18% increase for
the month which is shared by 68% of contributing companies. The section
as a whole gained 2%. The 4% gain for the first four months of this
year is led by a 21% gain in North Dakota. Sales during the past twelve
months are practically identical with sales in the preceding twelve months.
SOUTH ATLANTIC.
South Carolina leads the other States in this part of the country for
April with a gain of 19%. The section as a whole averages production 1%
less than that recorded for last April. A 2% increase is reported for
the first four months of this year as compared to the same period in 1927.
Sales in the twelve-month period are 2% better than last year's record
with the best gains of 12% reported in South Carolina and Delaware.
EAST SOUTH CENTRAL.
Kentucky alone in this section reports a loss in monthly sales. The
section as a whole gained 2% over last April. The other States show
gains for the month led by a 17% gain in Mississippi. Sales this year
have increased 7% over production in the first four months of 1927. The
record for the twelve months just ended is practically identical with sales
in the preceding twelve months.
WEST SOUTH CENTRAL.
This section leads the country with its monthly gain of 9%. Monthly
records continue to improve among the four States comprising this section,
with the exception of Louisiana, whose sales this month were 15% less than
last April. Arkansas leads with a 30% gain. Oklahoma is the only State
to gain over the last twelve months. All States show some gain for the
first four months of this year, a 9% increase being recorded for the section
as a whole.
MOUNTAIN.
This section reports a loss over sales last April. New Mexico leads the
section with a 28% gain. Nevada shows the excellent gain of 25%. The
twelve-month production is somewhat less than the corresponding period
last year. A gain of 1% for the first four months of this year is recorded
by this section Nevada leads with a gain of 63%.
The net income of 225 general business corporations for
the first quarter
of 1928 was $341,000,000, compared with $818,000,000 in
PACIFIC.
the first quarter
of 1927. This represents a gain of 7%. The advance,
Sales for the month are 6% less than the record for April 1927. The
however, is cut to
5%, when United States Steel and General Motors are
twelve-month production and the sales for the first four months of this
excluded.
The significant advances in the first quarter in the
individual groups year are lower than the corresponding records for 1927. The losses are
are:
universal throughout the section.
Number of .
:A .4•LrAdvance
Companies.
Croup.
)-4
-4 3.4 •
(per ant.)
18 Motor
Sales of Ordinary Life Insurance in Canada Gain in
28
8 Copper
28
13 Chain stores
April-Most Provinces Show Increased Production.
18
9 Chemical
7
15 & Motor equipment
A total of $46,718,000 of ordinary life insurance was pur2314 Food manufacturing and allied
2 4
chased in Canada during the month of April-a gain of 12%
Among the groups whose earnings declined in the first quarter
of this
over sales last April. The fact that 67% of contributing
year from the first quarter of 1927 were:
Number of _41C‘se:4 a
,
companies share in the above gain indicates general prosDecline
Companies.s7r Group. 4.4
:
(per.sent.) perity. These figures are furnished by the Life Insurance
.22 1,.Petroleum
.4 43
5 &Railway equipment
Sales Research Bureau and represent the experience of
43
, 18 Iron and steel
20
11 ikBuilding materials
companies having in force 84% of the total legal reserve or16
3206
FINANCIAL CHRONICLE
dinary life insurance outstanding in the Dominion of Canada. The Bureau adds:
[VoL. 126.
In the table that follows, the cost of building construction in 1913 is
taken as the standard, for both countries, and subsequent variations from
this are stated as percentages of the 1913 figure:
The monthly gain is well distributed throughout the Dominion, most
provinces sharing the country's gain. Substantial increases are recorded,
ranging from 8% in Ontario to 73% in Newfoundland. Saskatchewan and
Alberta gained 28% and 24% respectively over last April. Slight losses
were recorded in British Columbia, Manitoba, and Nova Scotia.
For the first four months of 1928, production shows a 14% gain over
the 1927 record. All provinces share this increase, showing substantial
gains. Newfoundland gained 43% over the first four months last year,
while New Brunswick, Saskatchewan and Alberta each increased 18%.
The record for the twelve months just ended amounts to an increase of
9% over the preceding twelve months. Saskatchewan shows a slight loss
for this period but gains are noted in all the other provinces. Quebec and
Alberta lead with 12% increases, while gains in the other provinces range
from 3% in Nova Scotia to 10% in Ontario.
Most of the cities show improved conditions for the year to date.
Montreal leads with a gain of 28% over the first four months of 1927.
Ottawa and Vancouver record slight losses. For the month of April,
Montreal and Quebec lead with gains of 27% and 13% respectively.
Ottawa, Hamilton and Winnipeg show losses over the heavy gains of 1927.
VARIATIONS OF BUILDING COSTS.
United Stales
Canada
(Federal Reserve Bank
(Corm/riled by The
of New York)
Bank of Nova Scotia)
100
100
1913
179
164
1919
234
201
1920
175
178
1921
174
162
1922
194
167
1923
191
1924
163
193
160
1925
195
158
1926
189
160
1927
No attempt is made to compare absolute cods of building, since very
wide variations from the average occur in both countries, and give an air
of unreality to the results thus obtained.
It will be seen that during the post-war years the cost of building has
almost invariably been lower in Canada, in relation to the pre-war cost,
than in the United States; and that the difference amounted last year to
nearly 20% in favor of Canada. In other words, in spite of the sustained
Purchasing Power of Dollar in U. S. Greater To-day and increasing demand for labor and materials, building le still relatively
to
According
National
Ago
Years
Five
in this country.
cheap
Than
The contrast between the changes in construction costa in the two
Industrial Conference.
countries is made all the more pointed by the fact that Canadian wholesale
The purchasing power of the dollar, as measures by av- prices in general appear actually to be higher (in relation to the pre-war
erage living costs for the American wage earner and other level) than wholesale prices in the United States. If the level of prices in
be taken in both cases as 100, the 1927 figures are for Canada (Dopersons of moderate means which incitides the great ma- 1913
minion Bureau of Statistics) 151, and for the United States (Bureau of
jority of the population, tf)-day standi higher than it has Labor Statistics) 144.
for nearly five years, according to the monthly cost of
living index of the National Industrial Conference Board,
247 Park Avenue, New York. The dollar is now worth,
Farm Land Prices in Ohio Have Apparently Reached
on the basis of living costs during March, 62.1 cents in comLowest Point Is View of Ohio Pennsylvania Joint
dollar
parison with the-purchasing power of the pre-war
Land Bank.
Stock
in July, 1914. It was lowest in July, 1920, when it stood
land
prices apparently have reached the lowest
Board
The
Farm
1914.
July,
at 48.9 cents as compared with
point In Ohio and some indications of improvement are
under date of May 7, also says:
The purchasing power of the dollar has been enhanced by a net decline beginning to appear. Sales by foreclosure on farms seem
in the cost of living of 21.2% since July, 1920, the peak of the post-war to be at least no more in number than a year ago and a
inflation period. This decline has been a fairly steady one for the two
larger number of not-forced sales of farms are reported
years 1926 and 1927, living costs to-day being the lowest since June
at prices slightly above last year. An undertone of buy1923, when they were at about the present level.
The chief factors in the declining cost of living were the items of food ing is present In some of the counties which suffered the
and rent. Retail food prices, the most important item in the wage
most severely from deflation and sentiment is inclining
earner's cost of living budget, in March of this year were 31.1% lower
2% lower than in March, 1926. Rents, more generally towards the opinion that farms are selling
/
than in July, 1920, and about 51
which did not reach their post-war peak until July and August, 1924, below their income value. Average crops this season might
when they were 86% higher than in July 1914, in March of this year
easily lead to a definite increase in farm sales on a nofor the country as a whole averaged 11.3% lower than at their 1924
peak, and 6.8% lower than March 1926. Coal prices, which have flue. ticeably higher price level, according to the May Report
tuated considerably, averaged last winter about 20% less than at their on Farm Finance of The Ohio-Pennsylvania Joint Stock
peak in November 1920. Gas and electricity, combined, which item
Land Bank. These conclusions are based on a survey
reaohed its peak in 1921, since that time decreased by about 21%. Clothing prices average a net decline of about 40% from their peak in April through reports from banks having country business. In
1920, but have held fairly steady during the past two years. All other further indicating its views, the Land Bank says:
items, combined in the group "sundries" in the budget, in March of this
in
land prices is
year were 10.9% lower than at their peak in 1920 and about 2% lower
than two years ago.
While the total cost of living in March of this year was 61.1% higher
than in July, 1914, average weekly earnings per worker in the manufacturing industries in February, 1928, were 118% higher and average
hourly earnings, reflecting principally wage rates, were 131% higher.
Thus the purchasing power of an industrial worker's weekly pay in February of this year averaged 35% higher than it did at the outbreak of
the World War, and the purchasing power of his wage on basis of hourly
earnings was 43% greater.
Business Conditions as Viewed by Bank of Nova Scotia
—Variations of Building Costs in Canada and
United States.
In its "Monthly Review" for May the Bank of Nova
Scotia states that "there has been a slight but unmistakable
expansion of business during the past month, least marked,
perhaps, In Quebec, but plainly visible throughout the Dominion and in all the major lines of activity." Continuing,
the bank says:
Tax payments, an excellent guide to the condition of the buying public,
are being made with unusual promptness; and even when allowance is
made for increasing efficiency of the machinery for collecting revenue, this
bespeaks a condition of prosperity.
Building construction of the present season is well under way. Highway
construction on a broad scale has begun unusually early. Present prospects
seem to indicate that the construction industries have before them a season
of unprecedented activity. Statistics published by MacLean Building
Reports show consistent increases in contracts for business and residential
purposes, though there has been a slight falling off in contracts for
industrial buildings.
The bank also supplies the following comparison of building costs in Canada and the United States:
Light is thrown on the present position of the building industry by
comparing recent fluctuations of construction costs in Canada with those
in the United States. This is made possible by the courtesy of the Federal
Reserve Bank of New York, which has permitted The Bank of Nova Scotia
to make use of its Index of the Cost of Building. This index is compiled
from price statistics collected by the United States Department of Labor,
and from wage statistics collected by the National Association of Builders
Exchanges- A similar combination of Canadian price and wage records,
produced by the Dominion Bureau of Statistics, and the Dominion Department of Labor respectively, can easily be made on parallel lines, and is
here reproduced.
farm
The opinion that the bottom has been reached
general among bankers in the country with more than 80% of the reports in the survey favoring this view. This more hopeful attitude is
especially in evidence in the northern three-fifths of the State. In same
counties of central and southwestern Ohio there is some uncertainty according to reports received.
Considerable investment buying of farms is reported. In a number
of counties with highly productive soils, farms are moving into strong
hands more rapidly than is generally apparent. Many who are waiting
for farms to sell still lower may be surprised to find a material stiffening
In prices because of the fact that the real bargains are being quietly abaorbed.
Farms are selling below their value on the basis o/ earnings in the
opinion of a majority of the bankers reporting in the survey. This is
felt to be especially true for the better farms and where good tenants
can be obtained and for farms operated by the owner. An average corn
crop this season should add many converts to the view that the better
grade of Ohio farms are a fair investment at present prices.
The interest of farmers in purchasing farm lands is one of the outstanding facts brought out in this survey. A reasonably good crop year
should result in a definite increase in the demand for farms among farmers
themselves and this would be a very effective support to farm land prices.
This coming back of farmers into the farm market is one of the clear
Indio-aims that the worst of the deflation period may have passed and
that prices may begin to show improvement.
Buyers for farms to-day are very discriminating in their purchases as
regards productive values of the soil and location as well as improvements. The farm on an improved highway has a decided advantage, the
survey shows, in the eyes of the farm buyer. The value of a location
near a large consuming center is also stressed in the reports.
The number of farm foreclosure sales is apparently no larger than last
year and may very probably be somewhat less. Among the replies to
the questionnaire in the survey, 66% stated that the number of farm
foreclosures was about the same as last year, while 20% reported fewer
foreclosures and only 14% reported a larger number.
Prices at forced sales seem to be about the same as last year or a little
less. Of the replies, 60% reported about the same as last year and 27%
reported lower prices, while 13% were for higher prices.
Farmers are attending foreclosure sales and are bidding higher for
the farms, which is another evidence of the increased interest of farmers, themselves, in purchasing farm lands.
More farms are selling this year at not-forced sales in the opinion of 20%
of those replying in the survey and 68% feel that at least as many farms
are selling this year. In a number of localities a very decided increase in
activity is reported.
Higher prices at free sales are reported in 23% and lower prices by 15%
of the replies and 62% report no change. These figures support the opinion that farm land prices have at least reached a bottom stationary
point and probably are beginning to show a slight advance.
MAY 26 1928.]
FINANCIAL CHRONICLE
Report:on,Wholesale:and Retail Trade in Philadelphia
Federal Reserve District.
Statistics covering wholesale and retail trade in the
Philadelphia Federal Reserve District during April are
made available as follows by the Federal Reserve Bank of
Philadelphia:
ADVANCE REPORT ON WHOLESALE TRADE IN THE PHILADELPHIA
FEDERAL RESERVE DISTRICT FOR THE MONTH OF APRIL 1928.
(Compiled by the Department of Statistics and Research of the Federal Reserve
Bank of Philadelphia.)
Net Sales During Month.
Trade.
Stocks at End of Mo.
Index Numbers
Compared Compared Compared Compared
(P. C. of 1923-1925
with
with
with
with
Monthly Average) Previous
Same
Same
Previous
Month.
Month.
Month. Month
Mar. '28. Apr.'28.
Last Year.
Last Year.
Boots and shoes-- *113.7
Drugs
117.1
Dryhgoods
*65.2
Electrical supplies_ _
90.1
Groceries
90.2
Hardware
*90.9
Jewelry
67.4
Paper
*105A
101.1
-11.1% -18.2%
104.5
-10.8
-4.2
53.9
-17.4
-19.0
-3.6%
+1.2%
-4.7
85.9
-21.1
+9.7
-7.0
84.4
-6.4
-3.4
+1.8
-4.3
89.8
-1.2
-6.3
+2.1
+0.0
54.5
-19.1
-22.9
-29.0
+2.6
95.7
-9.2
-0.9
-0.3
+3.0
Accts.Outstanding at End of Mo. ollee. During Mo.
Compared Compared Ratio to Compared Compared
with
with
Net Sales
with
with
Previous
Same
During Previous
Same
Month
Month
Month
Month
Month
Last Year
Last Year
Boots and shoes
Drugs
Dry goods
Electrical supplies
Groceries
Hardware
Jewelry
Paper
*Revised.
-1.3%
-1.3
-2.6
-8.2
+0.6
+2.6
-2.7
-2.0
-2.5%
-3.9
-2.5
+7.2
+4.6
-6.7
-5.2
+2.1
402.4% +28.3% -9.2%
156.2
-8.7
-1.2
328.9
-4.2
-14.1
+38.4
129.9
-17.6
133.5
-17.0
-7.7
206.8
-15.4
+5.8
590.0
+1.0
+6.2
148.2
+1.9
-.5.7
ADVANCE REPORT ON RETAIL TRADE IN THE PHILADELPHIA FEDERAL RESERVE DISTRICT FOR THE MONTH OF APRIL 1928.
Index
Net Sales.
Numbers
of Sales April'28
(% of '23 Compared Jan. 1
Monthly
with
Apr. 30
Average). Apr. '27. 1928.
All reporting stores
Department stores
In Philadelphia
Outside Philadelphia
Apparel stores
Metes apparel stores
In Philadelphia
Outside Philadelphia
Women's apparel stores
In Philadelphia
Outside Philadelphia
Shoe stores
Credit stores
Stores in:
Philadelphia
Allentown. Bethlehem and
Easton
Altoona
Harrisburg
Johnstown
Lancaster
Reading
Scranton
Trenton
Wilkes-Barre
Williamsport
Wilmington
All other cities
93.2
88.3
Stocks at
End of Month
Compared with
Month
Ago.
Year
Ago.
136.2
83.1
--14.0
--13.4
--13.3
13.5
--16.7
--21.1
--17.3
--27.8
--15.2
15.3
--14.2
--16.1
--14.2
-7.3
-8.3
-4.8
-5.3
-0.9
+1.7
-7.1
94.3
-13.5
-5.9
-1.9
-6.2
114.9
84.0
69.9
64.2
107.6
100.9
99.8
93.8
87.5
106.0
105.7
-5.8
-21.1
-11.3
-25.8
-14.7
-7.2
-21.2
-11.8
-17.3
-12.5
-15.0
-16.4
--5.8
--11.2
--2.1
--15.1
+2.0
--0.1
--8.1
--2.8
--3.7
-1.3
--2.6
-8.7
-3.4
+0.9
+5.5
-2.9
+1.4
+0.4
+3.1
+0.3
+2.0
-0.4
+0.3
-5.2
-19.8
+8.9
+2.2
-6.8
-3.7
+3.4
+3.9
+7.0
+2.4
-5.6
121.2
82.7
144.1
-5.7
-6.0
-6.4
-4.9
-.5.4
Stocks Turnover
Jan. 1-Apr. 30
All reporting stores
Department stores
In Philadelphia
Outside Philadelphia
Apparel stores
Mon's apparel stores
In Philadelphia
Outside Philadelphia
Women'a apparel stores
In Philadelphia
Outside Philadelphia
Shoe stores
Credit Stores
Stores in:
Philadelphia
Allentown, Bethlehem and Easton
Altoona
Harrisburg
Johnstown
Lancaster
Reading
Scranton
Trenton
Wilkes-Barre
Williamsport
Wilmington
All other cities
-0.8
-2.6
+1.8
+2.8
+3.9
+1.3
-5.0
-4.8
-6.2
+7.3
+2.3
-8.0
-7.6
-2.3
+3.8
-1.7
+1.3
-6.1
+9.2
+8.1
+15.2
+7.9
-12.5
Acc'tsRecl Collections
at End of Dur'g Mo.
Month Compared
Corn, with
with
Year ago. Year ago.
1928.
1927.
1.07
1.02
1.08
0.89
1.65
0.94
1.04
0.78
2.26
2.44
1.37
0.90
0.86
1.09
1.04
1.08
0.93
1.73
0.96
1.04
0.82
2.44
2.59
1.56
0.89
0.81
+2.4
+3.7
-6.7
+3.8
+13.1
+5.5
+5.9
+5.5
+15.1
+15.4
+13.9
+1.4
-2.6
+11.4
-8.2
-25.0
-5.5
+15.4
+17.4
+4.5
+5.3
-10.2
1.16
0.78
0.82
0.83
0.85
0.05
0.91
0.98
1.09
0.89
1.16
0.92
0.95
0.79
0.86
1.01
0.99
1.01
1.10
0.88
+8.7
+1.5
+12.1
+2.9
+13.1
-2.0
-4.9
-1.8
-1.6
+7.1
-7.7
--22.5
--1.1
--14.9
0.87.
0.72
0.90
0.75
-0.9
Automobile Models and Price Changes.
Dodge Brothers, Inc., have announced a Victory Six
touring car to supply the demand for a six-cylinder open
car by the company. The car is priced at $995. The addition of a sport sedan with attractive color combinations
in the Victory Six line also has been announced. Standard equipment includes six wire wheels, the spares being
mounted in welled front fenders. The car is priced at
$1,295.
3207
Reports from Boston, Mass., on May 18 stated that
the Ford Motor Co. has advanced the price of the fourdoor sedan $50 at factory. Boston delivered price is now
$725, as against $668 initially quoted.
The Gardner Motor Co., Inc., is introducing a new de
luxe sport roadster in color combinations on two chassis,
in two wheelbase lengths-the series 85 of 125 inches,
the series of 95 of 130 inches. The series 95 sport roadster is finished in tones of robinhood green on the front,
with abbot gray on the rear of the body, with a 115horepower eight-in-line motor. The series 85 sport roadster is ebony black on the front with Chinese red on the
rear of the body. This model has an 86-horsepower
motor. Both models have six wire wheels, the spares
mounted on the front fenders; nickel cowl lamps mounted
on a de luxe sport crowl bar, bullet type nickel head
lamps, tubular bar bumpers front, bumperettes rear with
folding trunk rack, and pigskin leather upholstery.
The Hudson Motor Car Co. has added to its lines a new
Essex sport roadster priced at $830 and Hudson sport
roadster priced at $1,295.
Automobile Production in April Somewhat Smaller
Than in March, but Ahead of Last Year.
April production (factory sales) of motor vehicles in the
United States, as reported to the Department of Commerce,
was 409,948, of which 364,877 were passenger cars and 45,071
were trucks, as compared with 413,379 passenger cars and
trucks in March and 404,759 in April 1927. The table
below is based on figures received from 160 manufacturers
in the United States for recent months, 49 making passenger
cars and 129 making trucks (18 making both passenger cars
and trucks). Figures for passenger cars include taxicabs
and those for trucks include ambulances, funeral cars, fire
apparatus, street sweepers and busses. Canadian figures
are supplied by the Dominion Bureau of Statistics.
AUTOMOBILE PRODUCTION.
(Number of Machines.)
United States.
Total.
1927-January
February
March
April
238,927
304,763
394.443
404.759
Canada.a
Passenger
Trucks.
Cars.
Total.
Passenger
Cars.
Trucks.
199,650
264,171
345,911
357,009
39,277
40,592
48,532
47.750
15,378
18,655
23,250
24,611
11,745
14.826
19.723
20,890
3,631
3.829
3,527
3,721
Total (4 months)_. 1,342,892 1,186,741
176,151
81,892
67,184
14,708
46,965
43,238
31,617
34,445
33,944
36,677
24.658
27,499
25,708
19,208
10,987
12,526
11,262
7.791
6,617
3,435
21,991
16,470
8.719
10,139
8,681
6.236
5.173
2,277
3,717
2.738
2.268
2,387
2,581
1,555
1,444
1,158
May
June
July
August
September__ _ October
November_ _ _ _
December
404,115
321,969
268.485
308,826
260,387
219,719
134,416
133,579
357.150
278,729
236,868
274,381
226,443
183,042
109,758
106.080
Total (year)
3,394,386 2,939.192
455.194
179,426
148,870
32,558
1928-January
February
March
April
231,693 b205.576
b323,809 b291,151
6413,379 b371,821
409,948 364,877
b26,117
b32,653
b41.558
45,071
8,463
12,504
9,724
24,240
6,705
10,315
7,478
20,546
1,758
2,189
2,246
3.694
Total (4 months) 1,378.829 1.233,425 145,404
54,931
a Reported by Dominion Bureau of Statistics. b Revised.
45.044
9.887
Another Big Week in the Lumber Industry.
Another big week in the lumber industry was recorded for
the period ended May 19, when production, shipments and
orders approached the year's highest levels, according to the
weekly analysis of the National Lumber Manufacturers
Association, based on telegraphic reports received from 828
of the country's most important softwood and hardwood
mills. All 3 items were within 500,000 to 2,000,000 feet of
the highest figures for the year of the Association mills;
production totaling 326,657,000 feet; shipments, 352,187,000
feet and orders, 359,280,000 feet.
The softwood mills, of which there were 408 reporting as
against 406 the preceding week, showed gains all along the
line, production advancing 7,283,246 feet, shipments,
10,320,221 feet and orders 33,031,609 feet over the week
before. The figures arc not comparable, however, with those
of a year ago because of the much larger number of currently
reporting mills.
Substantial gains also were recorded in the hardwood
branch of the industry. The 420 units reporting for the last
week had an increase of 6,000,000 feet in production,
2,000,000 feet in shipments, and a loss of 1,800,000 feet in
orders, declares the National Association's report, adding:
{VoL. 126.
FINANCIAL CHRONICLE
3208
Unfilled Orders.
The unfilled orders of 225 Southern Pine and West Coast mills at the end
of last week amounted to 730,911,654 feet, as against 732,872,012 feet for
227 mills the previous week. The 113 identical Southern Pine mills in the
group showed unfilled orders of 235.359.000 feet last week, as against 236,228,400 feet for the week before. For the 112 West Coats mills the unfilled
orders were 495.552,654 feet, as against 496,643.612 feet for 114 mills a
week earlier.
Altogether the 408 reporting softwood mills had shipments 108%. and
orders 110% of actual production. For the Southern Pine mills these percentages were respectively 105 and 104; and for the West Coast mills 116
and 129.
Of the reporting mills, the 408 with an established normal production
for the week of 2,8,611.949 feet, gave actual production 91%, shipments
99%, and orders 103% thereof.
The following table compares the lumber movement, as reflected by the
for
reporting mills of 8 softwood, and 2 hardwood, regional associations,
the 3 weeks indicated:
Past Week.
Corresponding
Week 1927.
Preceding Week 1928
(liaised).
Softwood. Hardwood.
Softwood. Hardwood. Softwood. Hardwood.
Mills
396
406
169
300
420
408
(units5).
17,842,000 265,465,000 47,945,000
Production. 272.748,000 53,909,000 206,004,000 28,643,000
55.696,000
284,112,000
214,738.000
Shipments_ 294,432,000 57,755.000
53.998.000
Orders__ _ _ 307.171.000 52.109,000 217,247,000 26,225.000 274,139,000
*A unit is 35,000 feet of daily production capacity.
West Coast Movement.
Seattle that
The West Coast Lumbermen's Association wires from
ending May 19 was
new business for the 112 mills reporting for the week
which
production,
above
16%
29% above production, and shipments were
production for the week of
was 117,149,654 feet, as compared with a normal
the week,50% was for future
108,091,005. Of all new business taken during
which 53,984,224 feet was
water delivery, amounting to 76,037,680 feet, of
export. New business by
for domestic cargo delivery, and 22,053,456 feet
the week's new business.
rail amounted to 69,647,484 feet, or 46% of
moved by water, amounting to
Fifty Per cent of the week's shipments
coastwise and intercoastal,
68.321,002 feet, of which 52,651.739 feet moved
totaled 62,169,652 feet, or
and 15.669.263 feet export. Rail shipments
5,160,944 feet. Undeliveries,
46% of the week's shipments, and local
188,875,782 feet. foreign 144,425,084
shipped domestic cargo orders totaled
feet, and rail trade, 162,251.788 feet.
Southern Pine Reports.
New Orleans that for 113
The Southern Pine Association reports from
above production and orders were
mills reporting, shipments were 5.36%
shipments. New business taken
4.04% above production and 1.25% below
(previous week 65,119,054);
during the week amounted to 68,765.400 feet,
and production. 66.shipments,80,634,800 (previous week 73.605,644);
The normal production (3 year
092,176 feet, (previous week 64,780,932).
reporting running
mills
110
the
Of
average) of these mills is 72,475,744 feet.
overtime. Two mills were shut
time, 50 operated full time. 8 of the latter
days.
down,and the rest operated from 1 to 6
of Portland, Ore., reports
The Western Pine Manufacturers Association compared with a normal
feet. as
Production from 35 mills as 32,734,000
Twenty-four mills the previous
Production for the week of 37,160,000.
There were marked increases
week reported production as 19,961.000 feet.
due to the larger number of
in shipments and new business last week,
reporting mills.
Manufacturers Association of San
The California White & Sugar Pine
mills as 26,806,000 feet (62% of the
Francisco, reports production from 20 compared with a normal figure for
total cut of the California pine region) as
before 23,221,000. Shipments were
the week of 28,058,000 and for the week
in advance of that reported for the
larger last week and new business well
week earlier.
Association of San Francisco. reports proThe California Redwood
feet, compared with a normal figure of
duction from 15 mills as 7,047,000
before reported production as 5,793,000
week
the
mills
Thirteen
9,639,000.
last week and new business showed a
feet. Shipments more than doubled
slight gain.
Association of Norfolk. Va., reports production
The North Carolina Pine
against a normal production for the week of
from 54 mills as 9,311,000 feet,
the preceding week reported production as
mills
Seventy-one
10,560,000.
decreases in shipments and new business,
13,030,000 feet. There were heavy
mills.
due to the fewer number of reporting Association of Minneapolis, Minn.,
The Northern Pine Manufacturers
7,807,800 feet. as compared with a
reports production from 8 mills as
10,880,200 and for the week before 8,120,500.
normal figure for the week of
orders showed a small decrease.
Shipments were larger last week and
Hardwood Manufacturers Association of
The Northern Hemlock &
production) reports production from 51
Oshkosh, Wis. (In its softwood
with a normal production for the week
mills as 5,801,000 feet. as compared
preceding week reported production 88
of 21.748,000. Thirty mills the
number of reporting mills, therewere
3,490,000 feet Owing to the larger
and new business.
considerable increases in shipments
Hardwood Reports.
of
& Hardwood Manufacturers Association
Hemlock
Northern
The
from 77 units as 12.851,000 feet, as
Oshkosh. Wis., reports production
the week of 16,183,000. Forty-eight
compared with a normal figure for
production as 8,078,000 feet. Again, the
units the previous week reported
last week is responsible for the notable
larger number of reporting mills
business.
Increases in shipments and new
Institute of Memphis, Tenn., reports
The Hardwood Manufacturers
feet, as against a normal proproduction from 350 units as 41,058.000
Three hundred and forty-eitht units
duction for the week of 71,554,000.
39,867,000 feet. Shipments showed
the week earlier reported production as
fell off to some extent.
a nominal decrease last week and new business
West Coast Lumbermen's Association Weekly Report.
One hundred fourteen mills reporting to the West Coast
12 1928
Lumbermen's Association for the week ended May
feet
134,214,845
and
sold
feet,
116,492,952
d
manufacture
shipped 132,917,633 feet. New;business was 17,721,893
feet more than production:andishipments 16,424,681 feet
more than production.
COMPARATIVEITABLEISHOWING PRODUCTION, NEW BUSINESS,
SHIPMENTS AND UNFILLED ORDERS.
April 21.
AprU 28.
May 5.
Week Ended-'P.' May 12.
115
115
113
114
Number of mills reporting
118,492.952 122,923,818 131,054,807 127,028,099
Production (feet)
149.213,944
129,366,344
154,646,757
134.214,845
New business (feet)
Shipments (feet)
132,917,633 137,932,281 147,570,104 116,831,310
Unshipped Business163,511,682 167,837,384 105,588,397 171,575,639
Rail (feet)
193.816,520 189,617,564 182,909,558 182,451,076
Domestic cargo (feet)
139,315,410 141,633,151 146,943,041 158,364,408
Export (feet)
Total (feet)
496,643,612 499,088,099 495,440,996 512,391,123
1925.
1926.
1927.
First 19 Weeks of1928.
120
104
77
113
Average number of mills_
1,891,247,276
1,865,411,327
1,391,205,688
Production (feet)
2.202,440,961
New business (feet)
2,397,914,481 1,481,890,858 1,989,611,270 1,904,292,944
2 197,258,455 1,431,228,333 1,952,166,797 1,937,971,051
Shipments (feet)
Country's Foreign Trade in April-Imports and Exports.
The Bureau of Statistics of the Department of Commerce
at Washington on May 15 issued its statement on the foreign
trade of the United States for April and the four months
ending with April. The value of merchandise exported in
April 1928 was $368,000,000, as compared with $415,374,000
in April 1927. The imports of merchandise are provisionally
computed at $345,000,000 in April 1928, as against $375,733,000 in April the previous year, leaving a favorable balance in the merchandise movement for the month of April
1928 of $23,000,000. Last year in April there was a favorable trade balance on the merchandise movement of $39,641,000. Imports for the four months of 1928 have been
$1,414,407,000, as against $1,421,782,000 for the corresponding four months of 1927. The merchandise exports for the
four months of 1928 have been $1,570,984,000, against $1,616,187,000, giving a favorable trade balance of $156,577,000
in 1928, against a favorable trade balance of $194,405,000 in
1927. Gold imports totaled only $5,319,000 in April, against
$14,503,000 in the corresponding month in the previous year,
and for the four months they have been $61,008,000, as
against $112,539,000. Gold exports in April 1928 were
$96,469,000, against only $2,592,000 in April 1927. For the
four months of 1928 the exports of the metal foot up $271,867,000, against $25,520,000 in the four months of 1927.
Silver imports for the four months of 1928 have been $19,548,000, as against $17,148,000 in 1927, and silver exports
$28,113,000, as against $26,519,000. Following is the complete official report:
TOTAL VALUES OF EXPORTS AND IMPORTS OF THE UNITED STATES.
(Preliminary figures for 1928, corrected to May 14 1928.)
MERCHANDISE.
4 Mos. Ending April.
April.
Exports
Imports
Excess of exports
Excess of imports
1928.
1927.
1928.
1927.
1
Inc.(+).
Dec.(-)
1.000
Dollars.
368.000
345,000
1,000
Dollars.
415,374
375,733
1,000
Dollars.
1,570,984
1,414,407
1,000
Dollars,
1,616,187
1,421,782
1,000
Dollars.
-45,203
-7,375
23,000
39,641
156,577
194,405
------
EXPORTS AND IMPORTS OF MERCHANDISE, BY MONTHS.
Bra_
.sr
ExportsJanuary
February
March
April
May
June
July
August
September
October
November
December
1926.
1925.
1924.
1923.
1,000
Dollars.
396,836
352,905
374,406
387,974
356,699
338.033
368,317
384,449
448,071
455,301
480,300
465,369
1,000
Dollars.
446,443
370,6713
453,653
398,255
370,945
323,348
339,860
379,823
420.368
490,567
447,804
468,3013
1,000
Dollars,
395,172
365,782
339,755
348,938
335,089
306,989
276,849
330,660
427,460
527,172
493,573
445.748
1,000
Dollars.
335,417
306,957
841,377
325,492
810,859
319,957
302,186
310,964
881,434
899,199
401,484
426.666
1927.
1928.
1,000
1,000
Dollars. DoUars
410,789 419,402
371,484 372,438
420,711 408,973
368,000 415,374
393,140
356,966
341,809
374,751
425,267
488.675
460,940
407,641
4 mos.ending April__ 1,570,984 1,616,187 1,512.121 1,669,027 1,447,645 1,309,243
10 mos.ending April__ 4.070,067 4,217,994 4,058.649 4,170,288 3,669.579 3.320,417
12 mos.ending Dec.
4,865,375 4,808,680 4,909,848 4,590,984 4,167,493
ImportsJanuary
February
March
April
May
June
July
August
September
October
November
December
337,949 356,841
350,973 310,877
380.485 378,331
345,000 375,733
346,501
354.892
319,298
368,875
342,154
355,738
344,269
331,234
416,752 348,185 295,506
387.306 333.387 332,323
442,899 385,379 320,482
397,912 346,091 324,291
320,919 327,519 302,988
336,251 325,216 274,001
338,959 325,648 278,594
336,477 340,088 254,542
343,202 349,954 287,144
376.868 374,074 310,752
373.881 370,431 298,148
359,402 396,640 333,192
329.254
303,407
397.928
364,258
372,545
320.234
287,434
275,438
253,645
308,291
291.333
288,305
4 mos.ending April__ 1.414,407 1.421,782 1.644,889 1,411,022 1.272,002 1,394,842
l0 mos.ending April__ 3,475,974 3,550,631 3.807.702 3,171.394 2,977.048 3,088,182
l2 mos.ending Dec__
4.184.742 4.430.888 4.228.589 sjins_ssa I 702 ntin
GOLD AND SILVER.
April.
GoldExports
Imports
Excess of exports
Excess of Imports
SilverExports
Imports
Excess of exports
Excess of Imports
4 Mos. End. April.
1928.
1927.
1928.
1927.
Inc.(+)
Dec.(-)
1,000
Dollars.
96,469
5,319
1,000
Dollars.
2,592
14,503
1.000
Dollars.
271,867
61,008
1.000
Dollars.
25,520
112,539
1,000
Dollars.
+248,347
-51,531
210,859
91,150
11,911
87,019
6,537
4,887
6,824
3,815
28,118
19,548
213,519
17,148
1,650
3,009
8.585
9,871
+1,594
+2,400
MAY 26 1928.]
FINANCIAL CHRONICLE
EXPORTS AND IMPORTS OF GOLD AND SILVER, BY MONTHS.
3209
It has resulted in a constant increase of the amount and variety of the
industrial output, a lowering of the labor costs per unit of product, and
an increasing volume of goods in distribution to the population.
This is the competitive system as we have known it in the past, and in
1928. 1927. 1926. 1925. 1928. 1927. 1926. 1925.
view of the progress that has been achieved under it there is little reason
1.000 1,000 1,000 1,000 1.000 1.000 1,000 1.000
to wonder that our public policy is firmly established upon it.
goonsDols. Dols. Dols. Dols. Dols. Dols. Dols. Dols.
Much of the waste and inefficiency alleged against the system is due to
January
52,086 14,890 3,087 73,526 6,692 7.388 9,763 11,385
February
25,776 2,414 3,851 50,600 7,479 6,233 7,752 6,833 the changes which are incidentaal to progress. Every new and improved
March
97,536 5,625 4,225 25,104 7,405 6,077 8,333 7.917 method makes old methods wasteful and inefficient
, no matter how efficient
April
96,469 2,592 17.884 21,604 6,537 6,824 7.612 9.323
they may have been in their day. Nothing is so destructive to old capital
May
2,510 9,343 13.390
____ 6,026 7,931 6.536
June
1,840 3,346 6,712
____ 5,444 7,978 8,522 as new ideas, but they replace all that they destroy with something bettet
July
1,803 5,069 4,416
--- _ 6.650 7,921 8,349 and the community is richer instead of poorer by the change.
August
1,524 29,743 2,136
__-_ 5,590 8,041 8,285
Since new supplies of capital are accumulating much faster than the
September
24,444 23,081 6.784
____ 6,627 7,243 7,487
October
10,698 1,156 28,039
___ 5,945 7,279 8,783 growth of population, their influence is to depress the rate of interest,
November
55.266 7,727 24,360
____ 5,634 6,794 8,118 except as capital is wanted for the reconstruction and development of
December
77.849 7,196 5,968
__-_ 7,186 5,610 7,589 industry. In one way or another new capital is devoted to speeding
up
4 mos.end.Apr. 271,867 25,520 29,047 170,834 28.113 26,519 33,460 35,458 production. It is constantly flowing into all the industries which offer
10 mos.end.Apr. 443,451 99,493 100,750 228,627 65.745 69,407 82,071 93,771 returns better than the current rate of interest.
constantly
have
We
a
12 mos.end.Dee.
____ 201,455 115.708 262,640
---- 75,625 92,258 99,128 increasing supply of capital per head of the population and a constantly
Importsincreasing supply of products per head of the population, and that this
January
38,320 59,355 19,351 5,038 6,305 5,151 5,763 7,339 involves competition is as certain as any law of nature. The new capital
February
14,686 22,309 25,416 3,603 4,658 3,849 8,863 4,929 that is always caning on the
market is not going to remain idle out Of
March
2,683 16,382 43,413 7,337 3,748 4,308 5,539 6,661
deference to old investment. It is bound to find a place for itself someApril
5,319 14.503 13,116 8,870 4,887 3,815 6.322
4,945 where.
May
34,212 2,935 11,393 ---- 5,083 4,872 3,390
June
14,611 18.890 4,426
The opinion is frequently repeated that industry is generally controlled
---- 4.790 5,628 4,919
July
10,738 19,820 10,204
__-- 4,288 5,949 5.238 by combinations and understandings which effectively
August
limit competition,
7,877 11,979 4,862
__-4,856
7,273
5,988
September
12,979 15,987 4,128
____ 4,992 7,203 4,504 but in fact there is little basis for this representation. Regardless of
October
2,056 8,857 50,741
inhibitions
,
it
legal
is
--seldom
5,069
5,602
5,098
that
conditions
the
affecting
a group of
November
2,082 16,738 10,456
____ 5,102 3,941 4,049 competitors are so nearly alike for all that they are able to agree upon
December
a
10,431 17.004 7,216
__-- 3,770 4.430 5,747 policy in restraint
of competition. Difference in costs usually exist, and
4 mos.end.Apr. 61,008 112,539 101,296 24,848 19,598
the
ambitions
of men are an important factor. An agreement to suspend
17,148 26,487 23.874
10 mos.end.Apr. 107.170202.923 188,903 118,325
47,675 49.758 58,900 63,300 competition virtually means that the existing status in the industry will
12 mos.end.Dse.
2A7 ARS 211504 125271
AA 1174 AO ROA Al\ADA
be maintained, and while that would suit a concern having a leading
position it does not satisfy those ambitious to grow. An irrepressible
conflict naturally arises between the new and low-cost producer, entering a
G. E. Roberts of National City Bank
field
already occupied, and an old high-cost producer already in possession
Before American
of the business. For what purpose does a new competitor enter a field
Cotton Manufacturers' Association
Discusses Ex- which already
Is fully occupied?
tent to Which Anti-Trust Laws Are
Responsible
It is a common statement that productive capacity in every line of
for Uneconomic Competition
-Conditions Con- industry exceeds the demands of the market. Naturally it is true of
the industries in which the technique is changing and costs are falling.
fronting British Cotton Goods Industr
y Incident The fact
that ample capacity already exists on a high-cost basis does not
to Competition.
deter low-cost producers from expanding their capacity.
"The Stress of Present-Day Competition"
Aside from changes within the industries themselves, changes which
served as the have
bearing upon the location of industries are a factor in competition.
title of an address by George B. Roberts, Vice
-President of New supplies of raw materials, new transportation faeilities, the developThe National City Bank of New York at the
ment
of new markets, may create new centers of production. A
annual meeting
of the American Cotton Manufacturers'
example of this Is
6 5
by the flour milling industry. The
Association, held in strikingofe7921
census
reported
active mills with 35,378 employees, and
Richmond, Va., May 17. Mr. Roberts noted
that the United four years later the census found only 4,413 with 31,988 employees.
States has been having in the last five years
one of the most Furthermore, at the latter date less than one-fourth of the mills were
notable periods of prosperity in its history,
making over 90% of the product. The total production of flour last year
the warrant for was
oily 55% of the milling capacity, and yet the constructi
this statement being found in the record of
of new
production and mills at strategic points by strong companies has been going on
on all of
traffic, the upward tendency of wages and
the general state the time and new mills are being announced this year.
of welfare among the people. "Neverth
I mention the flour milling industry because it has been going through a
eless," he said, "It is
period of reorganization, with great stress of competition, and because it
a common saying that business generally is
overdone, that seems to afford an illustration of conditions under
which competition is
competition is excessive, that profits are
Inadequate and, Irrepressible. The new milling capacity has been built by companies
of late, that in many lines of industry
which
making
have
been
profits
while
thousands
of other mills have
unemployment prebeen going to the wall.
sents a serious problem?' Mr. Roberts observed
that "the
The cotton goods industry has presented a situation in some respects
most notorious characteristic of the present
generation is similar to that of milling. It has been developing in new territory under
that its wants run constantly ahead of its
ability to satisfy conditions so favorable that its growth was inevitable. The raw material
was there, the labor was there, the markets were readily accessible,
them. The popularity of the installment plan
operatof buying, for ing costs were
on a low basis. The development of cotton manufacturing
purposes ranging from a home and all its
furnishings, to a in the South has been partly at the expense of New England,
but a large
sealskin coat, an automobile and a trip
to Europe, is evi- development has been possible simply to meet the increasing consumption in
dence that there is no deficiency of wants.
this country, and looking to the future this is an encouragin
g
feature of
Wants are the industry.
running so far ahead of purchasing power
that the latter
The cotton goods industry in Great Britain is confronted
by a world
scarcely keeps within hailing distance, and
in view of the situation somewhat like the domestic situation which confronts New Engfact that the purchasing power of every
land. It is a great industry, mainly dependent upon foreign
markets, and
consumer is in his new
competition has been developing in importing countries, based
own powers of production, you are forced
upon
to the conclusion cheaper costa and in many instances favored
by new tariff barriers. This
that the deficiency, if any, is on the side
of production." is a development that was bound to come some time, and the beginnings
Mr. Roberts went on to say in part:
were to be seen before the war, but the war hastened it.
The Chairman of Martin's Bank, Limited, one of the leading banks
We have to recognize that the course of
of
business instead of being Liverpool, in his last
annual address to the stockholders of that instituorderly, systematic and uniformly continuous is
more or less spasmodic, tion, summed up the situation
Irregular and haphazard, and that this irregularit
succinctly in a few paragraphs. He said:
y is inherent in the
"The cotton trade passed through a very trying time in 1927,
system of free and competitive business activity,.
as
cannot but be the case when a trade has to view its conditions from
On the one hand are always the proposals flor snore
an
regulation
by the entirely new standpoint.
political Government, but mankind has been busy
"In the 18th Century the fertile brains of English inventors,
history in getting rid of Governmental authority. through most of its
coupled
On the other hand, with the enterprise of the English
there Is the possibility of a greater degree of voluntary
manufacturers and the traditional skill
co-operati
on
of
within
the
operatives,
made
Lancashire and the North of England the world
industry itself, for the information and guidance
of individual enter- centre for cotton goods.
No other nation could take from us more than
prises, and in order that the industrial system may
perform its function the manufacturers of the coarsest
with the best results. When you come to close
goods. But as time went on other
quarters with that idea it nations bought machinery
from our engineers and scienoe produced a
means co-operation between the numerous units of
each line of industry, humidity of atmosphere
that has destroyed the advantage of our damp
and this raises the question whether such co-operatio
n
the stifling of competition and to economic domination Would not lead to climate.
over
the
many
in
"When
war
came
we
were gradually losing our position and Continental
the hands of the few.
and Eastern mills were springing up rapidly.
The public is slow to accept any policy which might
seem to lessen the
"During the war the mills of Japan, China and India
vigor of competition. As a rule, it delights in competitio
increased their
n
and freest kind, and the law of the land has reflected this of the widest output. Then when war ended, enticed by a shortlived and false trade
boom, many of our oldest established cotton mills
It is in the general interest that the industrial forces attitude.
sold
themselves to
gently directed, that the greatest possible stability shall shall be intelli- various groups of speculators who resold them to the public at a greatly
be maintained, inflated price.
and that costs shall not be increased by competition
which is simply
"Nothing worse could have happened to the industry.
uneconomical and wasteful. At the same time, it
The
undoubtedly is the pur- values of
the post-war period were proved fictitious, capital thatinflated
pose of our people to keep open the doors of opportunity to
should
all
comers
have
been used for bringing machinery up to date had
and to maintain that freedom of initiative and enterprise which
to be used for
has been other purposes and mill after
the chief factor In all the progress of the past.
mill found itself with stocks that
had
greatly depreciated; with machinery that
Tho what extent is it possible or desirable to place restraint
wanted modernizing;
upon com- had to raise fresh capital,
by calls or loans. And this at a time and
petition and to what extent are the anti-trust laws responsible
for uneco- foreign competition was fiercer than
when
ever before and with two great
nomic competition?
markets, China and Russia, no longer buying.
Undoubtedly competition is a fundamental force in society.
It is im"Various artificial stimulants were suggested, from
possible to conceive of free play for individual initiative and
short hours to a
enterprise regulation of output, but none was capable
without competition. In a state of free industry there must
of application, for the
be comparison ditions of each mill
conas regards finance and output varied
of services, and it is right that the individual who renders
superior service there was no authority with
completely and
power to compel."
shall be preferred over others. Therein is the incentive to
improveme
nt,
India now ranks fifth among the cotton
to invention, and to the development of industry as we
manufacturing countries. /
know it to-day. 1926 she had 8,700,000 spindles,
an increase of 2,100,000
from 1214.n
Gold.
Mex.
3210
FINANCIAL CHRONICLE
Japan ranks sixth, with approximately 6,000,000 spindles, an increase
of 3,500,000 since 1914. China in 1926 had 3,500,000 spindles, against
1,050,000 in 1914. Brazil had gone up frees 1,200,000 in 1914 to 2,500,000 in 1926. Japan is an active and low-cost competitor in all the markets of Asia. The other countries named have been large importers of
British cotton goods.
As a result largely, although not wholly, of these conditions, the British
cotton goods industry is in a critical condition. Exports are down approximately one-third from the pre-war volume, practically all in the
cheaper goods, such as are made in Japan and by the other new competitors. These countries have a superabundance of labor; it is not skilled
labor, but it is teachable and the countries are eager to become industrialized and to have new employments for their people. It is not likely
that this class of trade will be regained; the hope of the British
textile industry is in a general increase of world consumption.
The British cotton goods industry never has been closely organized.
It Is highly specialized, with 400 or 500 independent operators in Lancashire. They have long had the Federation of Master Cotton Spinners,
but it has not attempted to regulate prices. Under existing conditions,
attempt
prices have been completely demoralized, and early last year an
was made to organize the branch of the industry operating upon the
a new
into
worst,
cheaper grades of cloth, in which conditions were the
association, and to bind the members to certain policies. This association undertook to supervise the industry, dividing it into sections which
could be treated in a uniform manner and fixing minimum prices. It
had authority to assign a quota of the available business to each member and a system was adopted by which the quotas might be transferred
among the members for the purpose of consolidating the orders and
obtaining the operating economies of full time operation.
It should be noted that this attempt to unite the industry to control
operations and prices was not hampered by any fear of governmental
interference. Great Britain has no statutes corresponding to our antitrust legislation, and although the Courts, under the Common Law—
which indeed is the basis of our legislation on the subject—have the
power to deal with monopolies and with what are known as "Offenses
against Public Trade," that power is seldom invoked. The Lancashire
Cotton Textile Association even went so far as to impose a fine of Z300
or $1,500, upon one member for selling yarn below the fixed minimum
price. Nevertheless, the scheme was a failure, and the association in a
short time released all the members from their obligations. Only about
seventy-five per cent of the spinners could be gotten to join, and the
association in announcing the abandonment of the plan stated that their
own restrictions had resulted in the other one-fourth securing the bulk
of the business.
asThere was no talk of governmental opposition to the efforts of the
sociation. On the contrary, prominent officials of the Government openly.
meeting
lent their influence to the efforts by attending a great public
recalin Manchester, in behalf of the movement, designed to bring the
in
citrant operators into line. Furthermore, there has been agitation
of the
support of a proposal for a law under which a certain Department
Government would have authority, upon petition by a given percentage
to the
of an industry, to compel all recalcitrant members to conform
should
policy adopted by the established authority in the industry. It
among
proposal
this
for
support
be said, however, that there is but little
the proprietors of British industry.
The failure of the Lancashire Association has been due to the inherent
forces of competition. The producers are not all on the same basis
of costa, or of ability to sell their product or stand up under adverse
conditions. Those who are confident of their ability to survive do not
feel that they have anything to gain by pooling strength with the weaker
ones. This is the fundamental difficulty in attempting to secure cooperation between scattered and unequal units. Their interests are not
sufficiently in harmony to induce co-operation.
I have sought to sketch briefly the causes which are mainly responsible
for the excess of industrial capacity and the intensity of competition in
the industrial field. In so tar as they represent the tendency of
new and improved methods to supersede the old there appears to be
no remedy.
The situation in the British industry is extraordinary, because of its
sudden development. Up to the war and even in 1919, and in the first
half of 1920, there were no signs of overdevelopment If the situation
Is to be regarded as temporary there are strong reasons for a united
policy to avoid price cutting and wage cutting which would be demoralizing to the industry. But if a new and permanent situation ha developed the industry will have to face reorganization.
Another situation Is presented where an industry is over-developed
simply as the result of uninformed or misguided enterprise, the new
capacity having no advantage either in production or distribution over
the old. Expansion of this kind has no justification in utility, and is
contrary to sound public policy. If the new capacity has no other effect
than to curtail the operations of producers already in the field and attract into the industry more labor than can be regularly employed, Its
Influence is demoralizing and harmful. The surplus capacity is worse
than useless. It ties up capital which might be useful in other investments, it causes irregular employment, it lowers the efficiency of the
Industry, and tends to unsettle general business. One has only to look at the
results of over-development in the coal industry for proof that it does
not serve the general interest.
The public is interested in well-ordered industry, in regular operations,
steady employment for the wage-earning population, and in the elimination
of friction, waste, uncertainties and losses wherever possible.
The various branches of industry undoubtedly have it in their power,
exchange of information and
by organization within themselves, by the
by co-operation in many ways, to promote such a state of order, to their
own advantage and the public advantage as well. Here is a field for
constructive effort in tempering excessive competition.
The laws against agreements and combinations in restraint of trade have
not been changed upon the statute books, but the rules of application have
years, and especially as
been more clearly defined by the Courts in recent
are holding that
regards the activities of trade associations. The courts
It is not the intention of the law to prevent the development of economy
and efficiency in industry and are taking a larger view than formerly
of the services which trade associations may render in our industrial
economy.
The law has a 'clear purpose to maintain freedom of individual Initiative. It does not compel individual producers or traders to compete with each other, but it forbids agreements not to compete. It does
not require rivals to have different prices or different terms, but if
they establish the same prices and terms they must do so voluntarily
and independently and not by agreement.
[VOL. 126.
It does not require any one to sell goods or services at less than a fair
price or to do any act that of itself is demoralizing to legitimate business, but each competitor must abstain of his own free will and not as
a result of a bargain with others. The theory is that business shall be
kept free of entangling agreements.
There is agitation in behalf of modifications of the anti-trust laws, and
modifications to serve certain ends may be desirable, but it may be doubted
that this main purpose ever will be altered.
Moreover, it is to be considered that a change in our national policy
in this respect probably would involve a stronger tendency to Government
supervision over industry than exists to-day. That tendency is seen in
Germany, where the Government is enlisted in the support of the cartels
to the extent of compelling all the units of an industry to join, but where
this is done the entire industry comes under practically complete Government control. Within the last month the German Government has
decreed an increase of wages in the coal industry and fixed a permitted increase in the prices of coal. The industries of this country would like
some relief from destructive competition, but are they ready to accept
Government price-fixing and wage-fixing as an alternative?
What are the possibilities of educating industry itself to a policy of
rational self-government?
As the law stands in this country under the latest interpretation of
the Courts, the old hostility to trade associations has practically disappeared. In order to speak by authority I will take two paragraphs from
the opinion of the Supreme Court in the Maple Flooring case:
"It is not, we think, open to question that dissemination of information
concerning any trade or business tends to stabilize that trade or business and
to produce uniformity of price and trade practice. Exchange of price
quotations of market commodities tends to produce uniformity of prices
in the markets of the world. Knowledge of the surplus of the available
merchandise tends to prevent overproduction and to avoid the economic disturbances produced by business crises resulting from overproduction. But
the natural result of the acquisition of wider and more scientific knowledge
of business conditions, on the minds of the individuals engaged In commerce, and its consequent effect in stabilizing production and price can
-hardly be deemed a restraint of commerce or if so, it cannot, we think,
be said to be an unlawful restraint, or in any respect unlawful."
And in conclusion the Court said:
• "We decide only that trade associations or combinations of persona
or corporations which openly and fairly gather and disseminate information as to the cost of their product, the volume of production, the actual
price which the product has brought in past transactions, stocks of merchandise on hand, approximate cost of transportation from the principal
point of shipment to the points of consumption as did these defendants, and
who as they did, meet and discuss such information and statistics without, however, reaching or attempting to reach any agreement or any
concerted action with respect to prices or production or restraining competition, do not thereby engage in unlawful restraint of commerce."
In so far as ignorance of conditions, lack of information as to the state
of an industry, ignorance of true production costs and other varying factors
affecting business policies, are causes of demoralizing competition, conditions may be helped by the circulation of authoritative information.
The case then is before each individual member of his honest judgment,
first, upon what is the right policy for the industry as a whole, and
second, what is the right policy for him as a unit of the Industry.
As an exercise in moral discipline It would be difficult to find anything better than that One of the world's great moral philosophers laid
down as a guiding principle of conduct, that before doing any act as
to the morality of which there might be doubt, we should ask ourselves
what would be the effect if everybody did the same.
The time has gone by for rule of thumb operations and guess work In
Industry. The investments are too large, the margins of profit too
small, the hazards are too many, for any manager of business to indulge in
blind competition or to contribute deliberately to the demoralization
of the market. There is justification and need for co-operation for the
maintenance of sound and wholesome policies.
The Courts, in their construction of the law, have practically invited
the industries to organize and to study the problem of self-regulation,
to the end that the industrial organization as a whole may be improved to
the advantage of all concerned. It seems to me not out of place to say
that there is an obligation upon the industries to act upon the invitation, to come together and endeavor In good faith to use the liberty which
has been given them to serve the purpose which has been distinctly ref>
ognized as lawful and in the public interest.
The cotton goods industry has made an excellent start in the organization of the Cotton Textile Institute. No industry perhaps has greater
need for information about itself, its opportunities and possibilities than
the cotton goods industry. You cannot ignore each other, you have got
without
to take account of each other, you have common problems and
habit
doubt you can aid each other in solving them if you will get into the
whole.
of thinking of the welfare of the industry as a
and most of
Cotton is the chief material in the world's supply of clothing,
the world comes
this material is produced in these Southern States. As
surely grow beback to general prosperity, the demand for cotton will
hope that the
yond all past records, and I would like to express the
Notwithcloth.
cotton
of
United States may become a larger exporter
standing the tendency to which I have alluded for cotton manufacturing
see it here, I do
to develop where labor is cheaper than we want to
I hope the innot believe that our opportunity is wholly foreclosed.
dustry will keep its eyes on the export market, and be on its guard against
a
In
at
it
place
disadvantage
any proposals or tendencies which might
export business.
Activity in the Cotton Spinning Industry for April 1928.
The Department of Commerce announced on May 21 that
according to preliminary figures compiled by the Bureau of
the Census,35,921,306 cotton spinning spindles were in place
in the United States on April 30 1928, of which 30,965,404
were operated at some time during the month,compared with
31,412,820 for March, 31,687,012 for February, 31,697,876
for January, 31,715,388 for December, 32,269,478 for November, and 32,886,984 for April 1927. The aggregate number of active spindle hours reported for the month was
7,416,379,137. During April the normal time of operation
was 24 2-3 days (allowance being made for the observance of
Patriot's Day in some localities) compared with 27for March,
24 2-3 for February, 253 for January, 26 for December and
25% for November. Based on an activity of 8.83 hours per
day the average number of spindles operated during Apri
MAT- 26 1928.]
FINANCIAL CHRONICLE
was 34,049,764 or at 94.8% capacity on a single shift basis
This percentage compares with 96.8 for March, 101.2 for
February, 101.5 for January, 94.3 for December, 107.2 for
November, and 105.6 for April 1927. The average number
of active spindle hours per spindle in place for the month
was 206. The total number of cotton spinning spindles in
place, the number active, the number of active spindle hours
and the average spindle hours per spindle in place, by States,
are shown in the following statement.
3211
for a monthly survey within the industry, and the results of
the inquiries for April are herewith presented in tabular form.
The Secretary of the Association makes the following statement concerning the tabulation:
The figures on the attached memorandum are compiled from the reports
of 28 plants, most of which are representative plants, doing a variety of
week, and we believe it is well within the facts to state that these figures
represent a cross section of the industry.
Note.-(1) Many plants were unable to give details under the respective
headings of white goods, dyed goods and printed goods, and reported their
totals only; therefore, the column headed "total" does not always represent
Spinning Spindles.
Active Spindle Hrs.for Apr. the total of the subdivisions, but is a correct total for the district.
(2) Owing to the changing character of business and the necessary changes
Aver.Spindle in equipment at various finishing plants, it is impracticable to give average
In Place
State.
Active DarApril 30. (no April.
Total.
in Place.
percentage of capacity operated in respect to white goods as distignuished
from dyed goods. Many of the machines used in a finishing plant are
United States
35.921,306 30,965,404 7,416,379,137
206
available for both conversions; therefore, the percentage of capacity operated
Cotton-growing States
279
18,464,762 17.822,160 5,151,874,192
and the work ahead is shown for white goods and dyed goods combined.
New England States
15,829,108 11,785,338 2,007,746,607
127
All Other States
1,627,438
158
1,357,906 258,758,338
PRODUCTION AND SHIPMENTS OF FINISHED COTTON FABRICS.
Ambami
263
1,603,998
1,550,510 422,517,255
Connecticut
1,126.980
169
190,257.762
1,041,458
Georgia
283
White
3,072,252
Dyed
2,942,946 870,085,141
Printed
Maine
March 1928.
135
149,019.768
1,102,436
Goods,
830,166
Goods.
Goods.
Total.
Massachusetts
114
9,696,946
7,037,052 1,105.892,273
Mississippi
Total finished yards billed during
281
176,402
46,002,812
159.334
New Hampshire
month143
1,413.438
1,042,692 202,225,936
New Jersey
District 1
9,190,986 20,174,457 13,213,687 47,598,497
63,211,403
378,936
167
371,944
New York
2
5,305,081 1,428,567 3,466,567 19,415,790
147
860,280
126,280,365
641,852
North Carolina_
3
7,955,303 4,933,161
6,204,472
278
5,952.568 1,727,728,498
12,888,464
Rhode Island
5
6,376,834 1,544,289
2,344,500
143
334,321,332
1,717,066
7,921,123
South Carolina
8
5,469,964
1,915,640
301
5,390,440 1,648,373,166
1,915,640
Tennessee
604,212
288
173,896,506
576,206
Texas
Total
30,743,824 28,078,474 16,680.254 89,739,514
276,736
222
61,341,240
249,940
Virginia
Total grey yardage of finishing orders
710,952
172
685,758
122,633,070
All Other States
received878,802
198
775.472
172,592,610
District 1
9,476,252 16,741.769 13,122,523 42,000,683
2
6,785,430 5,288,327 1,610,198 17,755.691
a
8,310,785 3,972,363
12.283.148
6,117,682 1,527,148
7,644,828
New York Cotton Exchange Abandons Inquiry Into
1,643,588
1,643,588
Advisability of Trading in Silk Futures.
Total
32,313,737 27,529,605 14,732.721 1,327,938
of casesfinished goodsshipped
The New York Cotton Exchange on May 23 announced Number
to customersDistrict
1
4,280
5,536
3,551
24,984
its decision not to investigate further the advisability of
2
4,428
1,378
14,328
3
4,272
2,580
trading in silk futures on the exchange. This decision was
6,852
5
1,822
4,327
reached at a meeting of the Board of Managers, held May 22
8
1,004
1,004
and notice was posted on the bulletin board at the opening
of trading May 23. The announcement stated that in view
of the organization of the National Raw Silk Exchange,
"which apparently has gained the approval of the leading
silk interests here and abroad," the Board of Managers felt
that the question had been settled for the present. A number of members of the Cotton Exchange have joined the new
silk exchange. The announcement posted on the bulletin
board follows:
"Leon B. Lowenstein, chairman of the committee of the New York
Cotton Exchange for investigation of the advisability of trading in silk
futures, has recently returned from Japan and has made his report to the
Board of Managers.
"During Mr. Lowenstein's absence a separate exchange was formed which
apparently has gained the approval of the leading silk interests here and
abroad. Under the circumstances, the Board of Managers feels that the
question of the establishment of a silk exchange has been settled
for the
present.
"The Board of Managers have voted to discharge the Silk Conunittee
with thanks for the work which they have done and
especially to Mr
Lowenstein for his arduous work in connection with investigations
which
have been made of the silk industry both in this country and
in Japan."
Items regarding the proposal under consideration by the
Cotton Exchange appeared in our issues of Jan. 28, page 501
and Apr. 21, page 2415.
Agree on Price Reductions-Wholesale
Charge on Suits Cut From $1.25 to $1-Lowering
of Retail Scale Expected.
The following is from the "Times" of May 22:
Dry Cleaners
Reductions in wholesale dry cleaning prices, which will be
reflected in
retail prices, were announced last night as the result of arbitration between
the Master Cleaners' Association, representing the wholesalers,
and the
retailers' organization, which comprises some fifteen thousand
tailoring
establishments in the city and in New Jersey suburbs.
The reductions approximate 20%, wholesale. The $1.25 charge
for dry
cleaning suits will become $1, while 60-cent items will drop to 50
cents.
In the retail price scales, it is expected that this same amount
will be carried
through, the price of pressing and finishing, which must be
added to the
wholesalo price, being retained as it stands.
The arbitration, it was said yesterday, was the result of
differences which
arose when representatives of the two groups met to work out a
basis of
business after the recent strike. The settlement of the
strike served to
bring both sides together, and this in turn lead to a general
reconsideration
of the industry.
According to Berman Brickraan,the representative of the Master Cleaners
in the arbitration proceedings, both sides had agreed to approach the
problem from the standpoint of economic soundness. Mr. Brinkman said
that the outcome was a scale as low as could be adopted without endangering the industry.
The arbitration was conducted by three representatives of each side,
together with A. J. l'ortenar of the State Labor Department, as impartial
Chairman. The final negotiations were by Mr. Portonar, Mr. Brickman.
and William F. Schley, representing the retailers.
Report of Finishers of Cotton Fabrics-April Survey
Made Public by Federal Reserve Board.
The National Association of Finishers of Cotton Fabrics,
at therequest of the Federal Reserve Board, has arranged
Total
Number of cases of finished goods held
In storage at end of monthDistrict 1
2
5
Total
Total average % of capacity operated
District 1
2
3
15,806
9.494
3,551
51,495
2,711
4,899
1,079
65
431
3.851
1,658
2,549
16,385
14,127
5.941
2.903
431
9,185
5,509
While and Dyed
Combined.
60
64
80
62
83
2,549
39,787
115
93
67
71
80
62
83
64
107
69
2.7
2.8
4.1
4.3
8.5
19.0
16.8
6.0
4.0
4.1
4.3
8.5
3.3
18.6
4.8
Average for all districts
Total average work ahead at end of
month,expressed in daysDistrict 1
2
3
Average for all districts
White
Goods.
Dyed
Goods.
Printed
Goods.
Total.
April 1928.
Total finished yds. billed dur. month-District 1
10.352,980 12,214,093 12,513,662 38,773,908
2
4,988,070 1.081,069 4,082.129 17,191,498
11,204.148
7,213,206 3,990,942
3
6,440,562*
5,411.167 1,029,395
5
1,767,745
1,767.745
8
Total
29,733,188 18.315,499 16,595.791 75,377,861
Total grey yardage of finishing orders
received9,925,699 12,945,379 9,916,486 35,013,317
District 1
6,330,640 4,479,778 1,785,266 14,960,690
2
10,777,456
8,759,644 4,017,812
3
4.142,425 1,302,355
5,444,780
5
2,119,929
2.119,929
8
29.278,337 22,745,324 11.701,752 68,316,172
Total
Number of cases finished goodsshipped
to customers21,252
3,455
4,294
District 1
4,627
11,243
3,625
915
2
6,298
3,826
2,472
3
3,779
1,728
806
805
Total
Number of eases of finished goods held
in storage at end of monthDistrict 1
2
3
5
Total
Total average % of capacity operated:
District 1
2
3
5
8
Average for all districts
Total average work ahead at end of
month,expressed in daysDistrict 1
2
3
5
8
Average for all districts
14,279
8,014
3,455
43,378
3.099
5,663
1,201
68
429
3,798
1,571
3,039
17.068
14,279
6,011
3,089
429
10,460
5,369
White and Dyed
Combined.
56
56
76
55
92
3.039
40,876
109
77
63
61
76
55
92
so
.97
64
3.1
2.9
3.7
3.4
8.0
13.5
16.6
5.2
3.6
3,7
3.4
8.0
3.3
13.9
4.5
FINANCIAL CHRONICLE
3212 •
Dyers Merge to Cut Costs-Four Jersey Plants to Pool
Processes and Operations for Economy.
According to the "Times" of May 22 important cost
reductions are expected to be effected through the merger of
the four companies now making up the Associated Dyeing
and Printing Corp.,the consolidation of which was announced
recently. Completion of plant additions will give the new
company total floor space of 433,974 sq. ft. in the four
plants at Paterson, N. J., with 1,400 employes. The
"Times," adds:
All four plants will use one armored car service for transporting silk to
between New York and Paterson. In addition, all secret processes awned
by the various companies will be available to the others in the merger.
Other operating costs, including trucking. selling and insurance, are also
expected to be substantially reduced.
British Dyers' Strike Averted.
A Central News cablegram from London, May 19 to the
New York "News Bureau," said:
The threatened dyers' strike, involving 80,000 workers, has been averted
through the employers consenting to meet the unions to discuss disputes on
piecework conditions.
Trading
on National Raw Silk Exchange to Begin
in
September.
Trading on the National Raw Silk Exchange, which is to
open in September, will be surrounded by safeguards to
prevent manupulation of prices and to protect those who invest and trade in raw silk, it was announced on May 19 by
President Charles V. V. Smillie. The new exchange referred to in our issue of Apr. 21, page 2403 plans to profit by
the experiencesof other commodity futures markets and also
to adopt the most constructive protective measures recently
suggested by the Government. "The daily price quotations
on the exchange will accurately reflect the true commercial
value of raw silk as determined by the law of supply and
demand," said Mr. Smillie. He added:
"In the light of the investigations which the Government has recently
conducted in relation to alleged manipulation of prices on various commodity exchanges in this country, the governors of the silk exchange have
determined to employ every safeguard against the possibility of this practice. The by-laws of the exchange will embody the best provisions of other
exchanges, and will also include the most constructive measuressuggested
by various governmental departments to further control price manipulation.
"Every effort will be made to make the exchange a means whereby the
producer, the importer of raw silk, the throwster and the manufacturer
can obtain price insurance by hedging. The exchange will Countenance no
operations which will create an abnormal disparity between exchange
prices and the outside market price; nor any practices which will disrupt
the parity of prices between delivery months.
"The trading rules are being prepared with the assistance of experts
and experienced members of other commodity exchanges to the end that
trading on the exchange will be regulated to meet the highest standards of
integrity and fairness.
"In reference to the grades of raw silk which will be tenderable against
contracts, the exchange has enlisted the co-operation of men in the silk
Industry, recognized for their experience and training. who will assist in
perfecting a system of classification, inspection and warehousing which it
Ii believed will be so efficiently developed as to become a standard for all
silk markets of the world.
"The clearing house of the Cotton, Coffee and Sugar and Rubber Exchanges are the models upon which the Silk Exchange Clearing House will
be patterned; with the end In view that it may embody the high standards
and unquestioned security whieh the clearing houses of these established
exchanges now enjoy."
[vol.. 126.
week. A special dispatch from Richmond, Va., to the
"Wall Street Journal" on May 22 disclosed the fact that
leading oil companies of Louisville, Ky., territory, including Standard Oil, Mid-Continent Petroleum and others,
have agreed to end a price war in the sales of coupon
books, which have been generally sold at a 10% discount,
or $9 for a $10 book. Henceforth, only a 2% discount
will be allowed resulting in price of $9.80. In some cases
books have been sold as low as $8.50 in blocks of ten.
Gasoline is priced at 21 cents a gallon at Louisville filling stations, the price including a 5 cent State road tax.
Wholesale prices at Chicago, Ill., on May 25 stood as
follows: Motor grade gasoline, 7% cents; kerosene, 41-43
water white, 5 Y4 cents; fuel oil, 24-26 gravity, 75 to 80
cents.
Crude Oil Output Records Further Decline'.
The daily average crude oil production during the week of
May 19 declined 16,400 barrels from the amount produced
in the preceding week, reports the American Petroleum
Institute which estimates that the daily production in the
United States for the week ended May 19 1928 was 2,339,000
barrels as compared with 2,355,400 barrels for the week of
May 12. Compared with the output of 2,478,000 barrels in
the corresponding week of 1927, current output shows a
decline of 139,000 barrels per day. The current daily average production east of California was 1,707,000 barrels, as
compared with 1,732,500 barrels, a decrease of 25,500 barrels.
The following are estimates of daily average gross production
by districts for the weeks indicated:
(In barrels)Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
Southwest Texas
North Louisiana
Arkansas
Coastal Texas
Coastal Louisiana
Eastern
Wyoming
Montana
Colorado
New Mexico
California
DAILY AVERAGE PRODUCTION.
May 19 '28. May 12 '28. May 5'28. May 21'27.
610,050
613,300
617,100
736,700
108,150
109,150
110,300
114,500
66,200
66,800
68,800
134,100
74.800
75,600
74,750
89,450
54,800
54,750
55,500
76,250
294,100
313,900
426,950
111,750
23,350
39,350
22,650
23,500
23.400
23,150
23,250
34,900
43,600
43,458
44,800
48,450
86,600
86,100
84,100
113.400
111,750
111,850
106,100
132,550
18,250
18,000
17,650
15,600
112,500
111,500
110,500
115,000
59,750
60,050
64,550
61.800
11,500
11,500
11,750
13,750
6,850
7,450
6,300
6,350
1,950
2,400
2,550
2,600
622.300
627,700
632,000
622,900
2,339,000 2,355,400 2,466,650 2,478,000
Total
The estimated daily average gross production of the Mid-Continent field
including Oklahoma, Kansas, Panhandle, North, West Central, West
East Central and Southwest Texas, North Louisiana and Arkansas, for the
week ended May 19 was 1,384,350 barrels, as compared with 1,409,550
barrels for the preceding week, a decrease of 25,200 barrels. The MidContinent production excluding Smackover. Arkansas heavy oil was
1.323.100 barrels as compared with 1,348,400 barrels, a decrease of 25,300
barrels.
The production figures of certain pools in the various districts for the
current week compared with the previous week follow (figures in barrels
Of 42 gallons):
-Week Ended-Week EndedMay 19 May 12
North LouisianaMay 19 May 12
Oklahoma6,250 6,300
3,000 3,050 Haynesville
North Braman
6,750 6,750
1,550
Urania
1,600
Braman
South
On May 16 President Smillie announced that 250 appli- Tonkawa
13.750 13,800
Arkansas8,600 8,700
Garber
cants for seats on the National Raw Silk Exchange have been Burbank
7,800 7,700
34,350 34,850 Smackover, light
61,250 61,150
23,800 23.900 Smackover, heavy
elected and the membership is now completed. A site for Bristow Slick
9,700 9,750
Cromwell
the exchange is being selected. Mr. Smillie stated:
Coastal Texas6,950 7,200
Wewoka
8,250 9,700
52,750 54,950 West Columbia
"Committees have been organized for the past few weeks and are meeting Seminole
8,200 9,000
Ridge
Blue
68,350
66,300
Bowlegs
almost daily. One committee is selecting a site for the new exchange,
13,700
13,300
Junction
Pierce
14,800
14,800
Searlght
another is working on grading of raw silk, a third is drawing up rules for Little River
13,000 10,900
45,050 45,100 Hull
38,200 38,350
95,200 95,750 spindietop
trading, a fourth is regulating the commissions, etc. Before the end of the Earlsboro
4,500 4,400
Orange County
Panhandle Texassummer, now that the membership has been selected, the officers believe
Hutchinson County-- 38.900 39.900
that the exchange will meet this long-felt need of the silk trade, and will Carson County
Wyoming7,250 6,950
37,950 41,350
actually be in operation."
18,800 18,650 Salt Creek
Gray County
1,100
1,000
County
The National Raw Silk Exchange was incorporated on Wheeler
MontanaWest Central Texas12,600 12,700 Sunburst
9,600 9.600
Brown County
Apr. 5 last, the incorporators being Charles V. V. Smillie, Shackelford
County__-_ 10,000 9,750
CaliforniaFrank Henderson, President of the Rubber Exchange of
West Texas17,700 18,150 Santa Fe Springs
36,500 36,500
Reagan County
New York; Benjamin Van Raalte, Charles Muller, Oscar Pecos
51,200 51,500 Long Beach
184,000 173,000
County
56,000 55,000
& Upton Counties, 68,900 71,800 Huntington Beach
Heineman, Douglass Walker and Frederick D. Huntington. Crane
143,600 159,700 Torrance
18,500 18,500
W.nkler
Dominguez
12,000 12,000
East Central TexasSeats were allotted at $2,500 a piece. On May 15 $4,500 Corsicana
12,250 11,650 Roseerans
Powell
6,000 6,000
1,250 1,350 Inglewood
was bid for one.
Nigger Creek
29,000 29,000
Mld way-Sunset
Soutnwest Texas73,500 73,500
13,450 13,650 Ventura Avenue
Luling
47,000 49,000
6,000 6,000 , Seal Beach
37,500 38,000
A. & P. Stores in Houston Texas Cut Cigarette Prices. Laredo District
From the Wall Street Journal" of May 19 we take the
following Houston, Texas, advices:
Gross Crude Oil Stock Changes for April 1928.
Pipe line and tank farm gross domestic crude oil stocks
east of the Rocky Mountains increased 2,101,000 barrels in
the month of April, according to returns compiled by the
American Petroleum Institute from reports made to it by
representative companies. The net change shown by the
Crude Oil and Gasoline Prices Remain Stable.
reporting companies accounts for the increases and decreases
No price changes of importance were announced by in general crude oil stocks, including crude oil in transit, but
either crude oil or gasoline dealers during the current not producers' stocks at the wells.
Beginning Monday, Great Atlantic dz Pacific Tea Co. stores here will sell
cigarettes at 12 cents a package, straight. United Cigar Stores here are
selling two for a quarter. or 15 cents each. Two other large grocers are
selling two for 25 cents despite reduction of wholesale price some time ago.
All other stores and cigar stands are still selling cigarettes 15 cents straight.
MAY 26 1928.]
FINANCIAL CHRONICLE
Changes in Stocks:atIRefineries East:ofICalifornia for
April.
The following is the American Petroleum]Institute's summary for the month of April of the increases and decreases in
stocks at refineries covering approximately/87% of the
operating capacity east of California.
Barrels of 42 GallonsDomestic crude oil
Foreign crude oil
Gasoline
Kerosene
Gas and fuel oils
Lubricating oil
Miscellaneous
Increase.
Total
Deduct
2,209,000
669,000
Decrease.
366,000
523,000
204,000
30,000
701,000
99,000
955,000
Net increase
669,000
Crude Petroleum Output Higher-Texas Became Leading Producing State in March-Stocks Still Climbing Upwards.
According to reports received by the Bureau of Mines,
Department of Commerce, from companies which operate
gathering lines, production of crude petroleum in the United
States during March 1928, amounted to 74,465,000 barrels.
This represents a daily average of 2,402,000 barrels, an increase over the revised figures of the previous month of 55,000
barrels. The major portion of this increase was recorded in
the West Texas district, which showed an increase in daily
production of approximately 50,000 barrels over February.
This increased output enables the State of Texas to become,
for the first time, the leading producing State, with the possible exception of a month or two during the height of the
Spindletop boom in the early part of this century.
Total stocks of all oils amounted to 609,561,000 barrels,
an increase over the previous month of 5,808,000 barrels.
This compares with an increase in stocks of all oils in February of 7,451,000 barrels. Stocks of crude at refineries increased approximately 1,250,000 barrels; stocks of domestic
crude at tank farms and in pipe lines, 3,444,000 barrels.
Over half of the latter was West Texas oil; probably onefourth was Seminole oil.
Imports of crude petroleum during March amounted to
6,845,000 barrels, the largest amount for any month in two
years. The major portion of this oil was received from Venezuela, although the increase in receipts of Mexican oil was
also noteworthy. The Bureau adds:
The chief feature of the month from the standpoint of production
by
fields was supplied by West Texas, where the daily average
production rose
from 280,000 barrels in February to 332,000 barrels in March.
This material gain in output enabled this district to eclipse the
Seminole area in
production. Practically all of the increased output in West Texas
occurred
In the Hendricks pool of Winkler County. where a number
of exceptionally
large wells were completed during the month. A total of
68 producing
wells were completed in West Texas in March, which
had the unusually
high average daily initial production of 4,200 barrels.
Daily average production at Seminole declined, as expected,
although the
15,000-barrel decrease was less than was anticipated.
Completions in this
field dropped off 50%, which was the chief reason for the
decline in output.
Production in both the Seal Beach and Panhandle fields
showed small
declines during the month. Completions at Long Beach
were nearly
double those of February, with the result that daily average
production
showed a moderate increase.
PRODUCTION.
Barrels of 42 U. S. Gallons.)
Total.
Seminole
Panhandle
Seal Beach
Long Beach
West Texas
February 1928.
Daily
Average
9,747.000 314,000
2,239,000 72.000
1,234,000 40,000
3,877.000 125,000
10,305,000 332,000
Total.
Daily
Average
9,540,000 329.000
2,266,000 78,000
1,188,000 41,000
3,436,000 118,000
. •
March 1927.
Total.
Daily
Average
9,684,000 312,000
3,6.55,000 118.000
806,000 26,000
2,933,000 95,000
2,390,000 77,000
STOCKS AT SEMINOLE
(Barrels of 42 U. S. Gallons.
Mar, 1928. Feb. 1928. Mar. 1927.
Producers' stocks
Tank-farm stocks
386.000
414,000
18.386,000 17,745.000
285,000
4,200,000
Total stocks
18.772,000 18,159,000
4,485.000
RECORD OF WELLS, MARCH 1928.
(Barrels of 42 U. S. Gallons.)
Compkttons.
Gas,
Seminole
Panhandle
Beal Beach
Long Beach
West Texas
21
11
2
11
68
Total
Average
Initial
Initial
Driljini
Dry. Produaion. Produaton. Mar. 31.
2
13
--
11
21
3
28
11,540
4,925
200
20,900
285,981
500
400
100
1,900
4.200
110
136
2
174
313
Operations at refineries showed a further increase in March,
when the daily average crude throughout was 2,327,000
barrels, an increase over February of 65,000 barrels, states
the Bureau which continues:
Daily gasoline production was 943,000 barrels, an increase over the
previous month of 20,000 barrels. Daily average domestic demand was
776,600 barrels, which represents an increase over February of 6.5% and
over a year ago of 7%. Exports of gasoline showed a material increase over
February. Stocks of gasoline continued to increase though at a reduced
rate. The total on hand March 31 amounted to 40,229,000 barrels, an
Increase over February of nearly 1,500,000 barrels. At the current rate of
total demand, these stocks represent 44 days' supply as compared with 46
days' supply on hand the previous month and 63 days' supply on hand a
year ago.
The demand for kerosene was materially lower in March and stocks were
Increased. Fuel oil demand was brisk and stocks remained relatively unchanged despite increased output. Of particular importance was the decrease in wax stocks of 30,000,000 pounds, which brought these stocks to the
lowest point since the early part of May 1926.
Refinery data of this report were compiled from schedules of 320 refineries, with an aggregate daily crude oil capacity of 3.100,000 barrels.
These refineries operated during March at 75% of their recorded capacity
as compared with 317 refineries operating at 73% of their capacity in Feb.
ANALYSIS OF SUPPLY AND DEMAND OF ALL OILS.
(Including wax, coke and asphalt, in thousands of barrels of 42 U. S. gallons.)
1,540.000
March 1928.
3213
February
1928.
March
1928.
New Supply-Domestic production:
Crude petroleum:
Light
Heavy
March
1927,
Jan.-Mar Jan.-Mar
1927.
1928.
65,806
8.569
60.076
7,983
65,435
9.869
190.238
24,607
185,609
29.044
74,465
3,426
238
68,059
3,279
217
75,304
3,271
226
214,845
10,072
681
214,653
9,349
643
Total
Daily average
Excess of daily average domestic
produc. over domestic demand
Imports:
Crude
Refined
78.129
2,520
71,555
2,467
78,801
2,542
225,598
2,479
224,645
2,496
342
385
437
402
448
6,845
1,135
6,036
1.054
4,434
1,027
19.026
3,354
13,129
3,724
Total new supply all oils_
Daily average
86,109
2,778
78,645
2.712
84,262
2,718
247,978
2.725
241,498
2,683
5,808
7,451
8.365
22,399
24,386
80,301
2,590
71,194
2,455
75.897
2,448
225,579
2.479
217,112
2,412
1,530
11,247
67,524
2.178
1,243
9.578
60,373
2,082
1,199
9,450
75,248
2,105
4.005
32,563
189,011
2,077
3,568
29.198
184.346
2.048
Stocks (End of Month)Crude:
East of Callfornla:b
Light
Heavy
California:
Light
Heavy _c
317,429
50,670
312,700
50,640
244,785
45,325
317,429
50,670
244,785
45,325
19,633
94,484
20,110
94,797
29,568
87.886
19,633
94,484
29,568
87.886
Total crude
Natural-gas gasoline at plants.
Totalrefined
482,216
842
126,503
478,247
824
124.682
407,564
697
136,222
482,216
842
126,503
407,564
697
136,222
Grand total stocks all
Days' supply_d
609,561
235
603.753
246
544.483
222
609,561
246
544,483
226
Total crude
Natural-gas gasoline
Benzol
Change in stocks all oils
DemandTotal demand
Daily average
Exports:a
Crude
Refined
Domestic demand
Daily average
Bunker oil (Included above I
4,236
3,751
11,770
3,874
domestic demand)
11,401
a Includes shipments of non-contiguous territories. b Exclusive of producers'
stocks. c Includes fuel oil. d Grand total stocks divided by daily average total
demand.
PRODUCTION OF CRUDE PETROLEUM BY FIELDS AND STATES WITH
CLASSIFICATION BY GRAVITY.
(Barrels of 42 U.S. Gallons.)
March 1928,
Total.
I
patty Av.I
February 1928.
Total.
Dotty Av.
Jan.-Mar. Jan.-Mar.
1928.
1927.
Field7,305.000
52
1,s
Appalachian_ _ - - 2,641,000i, 85,200 2,413.000 83,200 7,40.
466,000
4,500
132.000
Lima-Indiana_ - 4,700
145,006
90,# •
96,000
1,000
30,000
900
Michigan
29.000:
20,400 1,878.''' 2,008.900
III.-S. W. Ind.__
22,800 591,000
707,000
Mid-Continent 45,642,000 1,472,300 41,438.000 1,428.900 131.223.000125.889.000
3,643,000 117,500 3,237,000 111.600 10,506,000 13,292,000
Gulf Coast
75,200 7,111,000 7,593.000
Rocky Motmtaln_ 2,540.000 82.000 2.180,000
58,004.000
19,118,000 616,700 18.038,000 622,000 58,184.
California
U.S. total--74,465,000 2,402,00068,059,0002,346,800214,845,000214.653,000
State7.983,000 11,462,000
2,682.000 86,300 2,569.000 88,6
Arkansas
19,118,000 616,700 18.038,000 622.00 56,184,000 58,004.000
California
229,000
697,000
707,000
8,400
7.900
259.000
Colorado
1,663,0001 1.840.000
17,8
20,500 517,000
636,000
Illinois
82.000
237,000
2,800
201,000
2,500
78,000
Indiana
74,000
215.000,
2,600
168,000
2,300
71,000
Southwestern-.
8,000
22,0001
33.000
200
200
7,000
Northeastern..
3,558.000 114,800 3,245,000 111,900 10.149,0001 10,551.000
Kansas
19,200 1,723.000 1.560.000
20,100 558.000
623.000
Kentucky
5,498,000
1,774,000 57,200 1,680,000 57,900 5,212,
Louisiana
13,500 1,229,00
391,000
14,200
850,000
441,000
Gulf coast
44,400 3,983,
4,648,000
Rest of State-. 1,333,000 43,000 1,289,00
30.000
1.000
29,000
900
90.
96,000
Michigan
354,000
11,300
12,200 1,076,
352,000
1,265,000
Montana
2,300
66,000
2,500
221,
408,000
New Mexico
76,000
182,00
6,300
6,400
198,000
567.
New York
533.000
19,400 l.738,00
i 615,000
19,80e 563,000
Ohio
1,857,000
439.00
15,300
15,100 1,359,0001 1,424,000
477,000
Cent. & East
124,000
4,500
4,300
379,000k
Northwestern .1 138,000
433.000
p0.034.000 646,20019.017,000 655,800 60,007,000 60,883,000
Oklahoma
1,879,000
64,800
Osage County.
6,464,000
17,138,000 591,000
Rest of State..
54,419,000
770,00
26,900
26,000 2.366.000 2,298,000
Pennsylvania.... 834,000
4,000
100
200
5,000
11,00
Tennessee
12,000
21,237,000 683,100 18,164,000 628.300 58,378,
Texas
50,787,000
Gulf coast.... 3,202,000 103,300 2,846,000 98,100 9.277.i.s 12.442,000
Rest of State 18.035,000 581,800 15,318,000 528,200 49,101,sIl 38,345,000
16,300
15,900 1.426,111 1,478,000
West Virginia... 604.000
59,800 1,531,000 52.800 5,107,000 5,223,000
1.853,000
Wyoming
38,300 1.096,000
37,800 3,581,
1,187,000
Salt Creek_ _
3,689,000
435,000
21,500
15,000 1,526,
Rest of State
666.000
1,534,000
Classification
Gravity (Appros.):
Light crude
65,896.0002,125,70060,076.000 2.071.500 190.238.',,
Heavy erode.
I 8,569,000 276.400 7.983.000 275.300 25,607.0001185,609,000
29,044.000
3214
STOCKS OF CRUDE PETROLEUM HELD IN THE UNITED STATES
Feb. 29
1928.x
March 31
1928.x
At refineries (and in coastwise transit thereto)
Reported by location of storage:
East coast-Domestic
Foreign
Appalachian
Indiana, Illinois, &c
Oklahoma, Kansas, &c
Texas-Inland
Gulf coast-Domestic
Foreign
Arkansas and Inland Louisiana
Louisiana Gulf Coast-Domestic
Foreign
Rocky Mountain
March 31
1927.
8,086,000
4,233,000
1.956,000
2,904,000
5,888,000
1,554.000
7,996.000
263.000
578,000
6,063,000
1,230,000
1,610,000
8,553,000
5,058.000
2,060,000
3,015,000
5,759,000
1,665,000
7,868,000
383,000
654,000
5,859,000
1,080,000
1,655,000
7,230,000
2,206,000
1,627,000
2,561,000
3,841,000
1,197,000
8,481,000
257,000
441,000
7,317,000
889,000
1,385,000
Total pipe-One and tank-farm!Gross 341,775,000 337,489,000 268,353,000
Net 324,366,000 320.922,000 252,266.000
stocks east of California
Foreign crude petroleum on Atlantic coast-- _
Foreign crude petroleum on Gulf coast
79,000
45,000
43,000
14.000
71,000
341,000
124,000
57,000
412,000
Total refinery. pipe-line, and tank-farm
stocks of domestic and foreign crude
368,099,000 363,340.000 290,110,000
petroleum east of California
Classification by Gravity (Approzimate)EBBS of California:
317,429,000 312,700,000 244,785,000
Light crude (24 deg. and above)
50,670,000 50,640,000 45,325,000
Heavy crude (below 24 deg.)
19,633,000 20,110,000 29,568,000
California-Light
94.484,000 94.797,000 y89,796,000
Heavy (including fuel)
x Revised. y Final figure.
IMPORTS AND EXPORTS OF CRUDE PETROLEUM (Barrels).
(From Bureau of Foreign & Domestic Commerce.)
March 1928. p February 1928.
Jan. Mar. Jan.-Mar
1928.
1927.
Daily
Daily
Total. Average Total. Average
ImportsFrom Mexico
1,542,000 49,700 963.000 33,200 3,715,000 5,462,000
From Venezuela
3.885,000 125,300 3,574,000 123,200 10,742,000 4,549,000
From Colombia
1,199.000 38,700 1,499,000 51,700 3,839,000 2,280,000
730.000
838,000
From other countries
219.000 7,100
Imports
Ezports-a
Domestic crude oil:
To Canada
To other countries
Foreign crude oil
6,845,000 220,800 6,036,000 208,100 19,026,000 13,129,000
1,298,000 41,900
231,000 7,500
1,000
998,000 34,400 3,161,000 2,895,000
837,000
673,000
245,000 8,500
1,000
Exports
1,530,000 49,400 1,243,000 42,900 3,999,000 3.568,000
a No shipments of crude to territories during March.
INDICATED DELIVERIES OF CRUDE PETROLEUM, EXCLUSIVE OF
CALIFORNIA GRADES. TO DOMESTIC CONSUMERS (Barrels).
1928.
Total.
Daily Av.
Total.
1927.
Daily Av.
Appalachian__ 2,642,000
85,200 2,306,000
79,500 7,476,000 7,520,000
2,800
107,000
Lima-Indiana__
88,000
3,700
325,000
347,000
Michigan
29,000
900
30,000
1,000
90,000
96,000
17,400
538,000
674,000
23,200 1,840,000 1,968,000
Ill. & S. W.Ind
Mid-Continent 41,870,000 1,350,700 37,349,000 1,287,900 119,057,000 112,282,000
4,342,000 140,100 3,920,000 135,200 11,871,000 15,427,000
Gulf Coast
77,200 2,310,000
Rocky Mount'n 2,394,000
79,700 7,042,000 8,833,000
Deliveries &
exports_ _ _ 51,903,000 1,674,300 46,696,000 1,610.200 147,701,000 146,563,000
Deliveries
51,018,000 1,645,700 45,955,000 1,584,000 145,329,000 144,360,000
For. petroleum 6,777,000 218,600 6,107,000 210,600 18,990,000 13.326,000
Deliveries of
domestic &
for. petrol_ 57.795.000 1.864.300 52.062.000 1.795.200 164.319.000 157.686.000
:Revised.
STOCKS HELD BY THE REFINING COMPANIES IN THE UNITED STATES
MARCH 31 1928.
,
(Barrels)East coast
Appalachian
Indiana, Ill., &c
Oklahoma, Kansas. &a
Texas
Louisiana and Arkansas
Rocky Mountain
California
Total
Total Feb. 29 1928
Texas Gulf coast
Gasoline.
Kerosene.
7,101,000
1,352,000
5,617,000
4,060.000
5,648,000
1,725,000
2,114,000
12,612,000
1,592,000
285,000
876.000
525,000
1,493,000
1,112,000
314,000
1,629,000
East coast
Appalachian
Indiana, Illinois, &c
Oklahoma, Kansas. &a
Texas
Louisiana and Arkansas
Rocky Mountain
California
Total
(MS dt FM
Oils.
9,414.000
929,000
1,222,000
4,448,000
7,809,000
4,567,000
781.000
Lubricants.
3,043,000
1,066,000
914,000
565,000
1,743,000
119,000
139.000
823,000
40,229,000
7,826,000
x29.170,000
8,412,000
38.782,000
4,742,000
1.617.000
7,692,000
1,399,000
1.099.000
x29,011,000
6,255,000
3.955.000
8.332,000
1,675,000
119.000
Waz
(Lbs.).
45,177,000
19,794,000
18,527,000
2,222,000
7,387,000
30,850,000
12,492,000
16,000
Other
Finished UnfinishAsphalt Products
ed Oils
Coke
(Tons). (Tons). (Ebts.). (BM.).
33,000 123,800 133,000 7,041,000
73,000 1,164,000
2.70)
42,100 34,600 778,000 3,587,000
1,700 131,000 2,247,000
58,200
8.700
14,000 9,805,000
94,100
91,000 1,823,000
63,700 34,300
22,000 1.447,000
9,100
58,600
56.500 285,0,00 y8,431,000
136,465,000 3.52,400 268,700 1,527,000 35,545,000
166.244,000 337,000 230,300 1,297,000 35,972,000
Total Feb. 19 1928
8,000 8,340,000
8,600
7,292,000 79,400
Texas Gulf coast
86,000 1,308.000
30,8.50,000 61,700 34,000
Louisiana Gulf coast
:East of California. y Includes 1,361,000 barrels tops in storage.
NUMBER OF' PRODUCING OIL WELLS COMPLETED.a
March 1928.
949
43,609,000 42,361,000 37,432,000
Total east of California
Elsewhere than at refineriesDomestic-Reported by field of origin:
Appalachian-N. Y., Pa., W. Va.,fGross 6.489,000 6,551,000 6,707,000
Net
6,181.000 6,240,000 6,424,000
eastern and central Ohio
Gross 1,249.000 1,191,000 1,276,000
Kentucky
Net
1.121,000 1,063,000 1,151,000
Grow 1,390,000 1,306,000
907,000
Lima-Indiana
Net
1,210,000 1,153,000
695,000
Gross 12,711,000 12,534,000 12,295,000
Illinois-S. W.Indiana
Net
12,208,000 12,039,000 11,810,000
Mid-Continent-Oklahoma. Kansas. Grose 246,720,000 242,223,000 170,756,000
Net 233,886,000 229,696,000 159,050,000
central, north and west Texas
Gross 28,717,000 28,609,000 31,278,000
Northern Louisiana and Arkansas
25,677,000 26,095,000 28,405,000
Net
Gross 17,153,000 17,873,000 18.248,000
Gulf coast
16,779,000 17,478,000 17,896,000
Net
Gross 27,346,000 27,202,000 26,886,000
Rooky Mountain
27,304,000 27,158,000 26,835,000
Net
-lcunt by Fields
of' Origin.
[voL. 126.
FINANCIAL CHRONICLE
I
February 1928.
Jan.-March 1928, I Jan.-March 1927.
4,144
2,549
a For States cast of California from "Oil & Gas Journal"; for California from the.
American Petroleum Institute.
836
SHIPMENTS OF CALIFORNIA OIL THROUGH PANAMA CANAL TO
EASTERN PORTS IN UNITED STATES (BARRELS).
March 1928. February 1928. Jan.-Mar. '28 Jan.-Mar.'27
Crude oil
Refined products:
Gasoline
Asphalt
Gas oil
Fuel oil
Lubricants
Total
423,000
415,000
1,072,000
1,792,000
1,150,000
6,000
257,000
196,000
69,000
910,000
2,000
93.000
79,000
1,000
3,132,000
9,000
661,000
277,000
155,000
2,456,000
1,000
1.108,000
2,997.000
73,000
1,678.000
1.085.000
4.234.000
6.635.000
Steel Operations Show Slight Curtailment-Pig Iron
Price Again Declines.
Mill operations are tapering, but the gradual character
of the decline is testimony to the large volume of steel passing
directly into consumption. With prices no longer buoyant,
consumers are ordering sparingly and, in some instances, are'
delaying purchases in the hope of buying more advantageously later, observes the "Iron Age" in its May 24 review of
market conditions. This spirit of caution is reflected not
only in new business, but in a reduction in the average sizeof individual specifications. Shipping orders in the aggregate, however, show surprisingly little change.
Steel output in the Greater Pittsburgh district has dipped
to 75%, compared with a recent rate of 80% of capacity.
At Chicago, where production has been holding at 95%,
there has been virtually no curtailment to date. Average
operations of Steel Corporation subsidiaries are now placed
at 85%, a decline of three or four points in the past week,
according to the "Age" which adds:
The volume of tonnage still reaching the mills is all the more impressive
when the uneven tendencies of consumption are considered. Makers of
wire products are feeling the overstocked condition of jobbers, particularly
in nails. Business in steel pipe is making a poor showing compared with
recent years. The decline in demand for oil country pipe is marked, even
in comparison with last year, when first quarter shipments satisfied most
of the first half requirements. Railroad equipment orders are disappoint-.
ing, and the consumption of hot-rolled bars by makers of cold-finished bars
and bolts, nuts and rivets has declined, bolt and nut output being 10%
lower than a month ago.
On the other hand, tin plate demand remains active, supporting mill
operations well above 90% of capacity. Specifications for automobile.
steel are diminished and, with the exception of one or two companies, there
has been no slowing down in motor car output. Ford's bar requirements
now exceed the capacity of his own mill, and an increasing tonnage is being
bought in the open market. At Chicago new business in soft steel bars is
equal to shipments and alloy steel bar mills are running at capacity.
Specifications for automobile body sheets remain heavy. Some interruption in the flow of steel to motor car plants is expected, however, in
about 30 days, when new models will be brought out.
The structural steel outlook continues good, although awards of fabricated
work for the week were light. At New York fully 90,000 tons of new work
will come up for bids before mid-summer, and at Chicago 50,000 tons for
a single project will probably be placed by the middle of June.
Prices of finished steel, in view of the small amount of new business,
show little change. Recent minimum prices on black and blue annealed
sheets are becoming more general,and galvanized sheets have dropped another $1 a ton to 3.55c.,Pittsburgh. On 6 to 12-in, hot-roiled strip 1.75c..
Pittsburgh, or $I a ton under the recent base, Is more commonly quoted.
Alloy steel bar mills have increased the differential on Series 3200 nickel
chromium steel bars $7 a ton. The advance represents a readjustment tobring a particular grade more nearly in line with other grades.
Prices of primary materials continue to give ground. Basic and Bessemer
malleable
pig iron have declined 504. a ton in the Valleys and Cleveland
and foundry grades have receded 25c. to 50c. for delivery to competitive
districts. The Michigan market on foundry and malleable iron, which has
held at $18 a ton, furnace, for some time, is now represented by a range of
$17.50 to $18. At Pittsburgh heavy steel scrap has dropped 50c. a ton.
The Virginian Ry. has bought 1,000 hopper car bodies, and the Erie RR.
has ordered 35 locomotives. The Wheeling & Lake Erie has placed a
supplementary order for 1,000 tons of rails, and a Western road has bought
4.000 tons. Rail mills at Chicago continue to operate at 90%, but diminishing backlogs point to an early curtailment.
Merchant producers of pig iron are encountering increasing competition
from steel company furnaces as steel output tapers. Weakness in scrap.
prices, by stimulating the use of old material in open-hearth furnaces, has
also released more steel works pig iron for the open market. The drop
of 504. a ton on basic and Bessemer pig iron in the Valleys brings these
grades to the lowest levels since the fall of 1915. The reduction in Valley
basic was brought out by a 25-000-ton inquiry from a steel company.
At Chicago, pending third quarter business in foundry iron totals 30.000
tons, and smaller amounts are under consideration at other points. The
pig iron situation in the Chicago district is being watched anxiously, following the arrival of cargoes of hematite iron from England and foundry iron
from Lake Erie ports.
Bookings of fabricated structural steel fell off In April from March in the
ratio of 69% of capacity for March to 63% for April. Fabricated steel
plate work, on the other hand, bulking roughly one-fourth the volume of
fabricated structural steel, showed an increase from 57% of capacity in
March to nearly 61% in April.
For the third successive week the "Iron Ago" pig iron composite price
has reached a new low level. It is now $17.34 a ton, the lowest figure
since 1915. Finished steel remains for a third week at 2.348c. a lb. The
usual weekly composite price tables follow:
MAY 26 1928.]
FINANCIAL CHRONICLE
Pig Iron.
Finished Steel.
May 22 1928, $17.34 a Gross Ton.
May 22 1928, 2.348c. a Lb.
$17.42
2.3480. One week ago
One week ago
17.67
2.355e. One month ago
One month ago
19.04
2.367c. One year ago
One year ago
15.72
1.689c. 10-year pre-war average
10-year pre-war average
Based on average of basic iron at Valley
Based on steel bars, beams,tank plates,
foundry
pipe
furnace
and
irons
at
black
Chicago.
rails,
plain wire, open-hearth
and black sheets, constituting 86% of the Philadelphia, Buffalo, Valley and Birmingham.
United States output.
Low.
Low.
High.
High.
1928...2.364c. Feb. 14 2.3140. Jan. 3 1928..317.75 Feb. 14 517.34 May 22
1927_2.453c. Jan. 4 2.2930. Oct. 25 1927__$19.71 Jan. 4 $17.54 Nov. 1
1926_2.453c. Jan. 5 2.4030. May 18 1926._ 21.54 Jan. 5 19.46 July 13
1925_2.5600. Jan. 6 2.396e. Aug. 18 1925__ 22.50 Jan. 13 18.96 July 7
1924__2.789c. Jan. 15 2.4600. Oct. 14 1924__ 22.88 Feb. 26 19.21 Nov. 3
1923_2.824e. Apr. 24 2.4460. Jan. 2 1923-- 30.86 Mar.20 20.77 Nov.20
Only the automotive industry of the four major outlets for
iron and steel is a noteworthy buyer at this time, but the
aggregate of demand from small and moderate-size users
is sufficient to temper the seasonal second-quarter letdown
into a gentle diminuendo, declares the "Iron Trade Review"
this Week in its summary of conditions affecting the iron
and steel industry. Through a spotty situation, both as
to products and districts, it is evident that steelmaking holds
at just above 80% and opinion grows that the summer dip
will be less pronounced than last year.
Unless the railroads, the oil country and the building
industry develop a spurt, it will be to small consumers that
the markets will look for their support. But this may prove
no mean reliance, judging from current demand for bars,
which are the most ubiquitous of all finished steel products
and the chief purchase of small metal-working plants. At
present the volume of bar business is probably equal to that
in, other heavy finished lines combined, observes the "Review," adding:
Considered on a daily basis, automotive production in April increased 6%
over March and May thus far has shown no radical change. Building steel
needs have fallen slightly under the seasonal normal despite heavy inquiry.
Expected revival of oil country buying of pipe and tanks has not material
ized, although some large gas lines are maturing. Equipment orders from
the railroads are negligible and rumors of heavy buying by eastern trunk
lines in this quarter still lack substantiation.
Announcements concerning third quarter prices on steel products may be
forthcoming shortly, but at the moment there is nothing in the price situation to affect buying. Consumers are placing only their immediate requirements and for some lines believe reaffirmation of present levels is in
prospect. In pig iron, however, the easier tendency in some districts is a
distinct deterrent to buying.
Spot selling of iron at Chicago has been checked by last week's reduction
of 50 cents, although fresh third and fourth quarter inquiry totals 25,000
tons. The sale of 6,000 tons to a Muncie, Ind., melter at $16, Cleveland
furnace, is no harbinger of strength for the lake furnaces. The basic
market in the Mahoning valley may be tested by the American Rolling
Mill Co.'s feeler for 25,000tons. Two makers at Buffalo say $27 for foundry
and $17.50 for malleable is their third quarter minimum.
Chicago bar mills, with specifications about matching shipments, believe
they can hold this gait into the third quarter. Barge builders at Pittsburgh
are fair buyers of plates. Chicago plate mills have 30-day backlogs and
apparently have closed on most of the plates needed for recent freight car
orders. In no district are plain shape orders holding up, reflecting the
easier building situation. Reinforcing bars, however, are at the peak of the
busy season, with 2,000 tons placed for the Lake Champlain bridge and
3,500 tons pending for a building in New York.
Sheet orders booked by Pittsburgh district mills sustain 80% operations,
but at Chicago only 50 to 55% is possible. Automotive users are pressing
Mahoning valley full finished makers for deliveries and production is higher
there. Sheet prices continue easy. Tin plate mills still operate 90% or
better.
Shipments of buttwelded merchant pipe from some Mahoning valley
mills exceed the April rate. Cast iron pipe demand droops but prices hold.
Contracting for some ferroalloys for last half year delivery indicates
heavier consumption than in the first half. The increase of $5 per ton on
ferromanganese for the last half has stimulated specifications against first
half contracts.
Steel prices in Great Britain have become so unsatisfactory, from the
viewpoint of producers, that there is talk of adopting the continental
ideal of selling syndicates. Belgium is considering raising duties on special
steels. Germany's exports, especially to China, are expanding.
As never before, water-borne iron and steel is setting up new market
alignments. Boston and eastern New York iron is now being barged as
far south as Chesapeake Bay, while Buffalo iron barged east is increasingly
a factor in the eastern markets. Another cargo of 2.000 tons of British
pig iron is on the way to Philadelphia. An eastern steelmaker is now
making weekly delivery of finished material at upper Great Lakes ports.
The Great Lakes trade in scrap and pig iron is beginning heavier than last
year. Youngstown, 0., steelmakers are earnestly seeking Federal sanction
for a railroad link to the Ohio River.
United States Steel Corp. subsidiaries are operating this week at 85%,
a decline of 4 points. Pittsburgh district operations average 80%. Chicago
93 to 95 and Buffalo 80 to 85. Corrigan, McKinney Steel Co. has lighted
a blast furnace stack at Cleveland while the Republic Iron & Steel Co. has
banked one of its liaselton stacks. Sheet mill operations in the Mahoning
Valley this week are 84%, against 73% last week, but three fewer open
hearths are on this week, in the valley.
The "Iron Trade Review" composite of fourteen leading iron and steel
products is unchanged this week at $35.53.
Curtailment is normal for this season, declares the "Wall
Street Journal" of May 23 in describing current steel operations. Buying is steady but cautious in character while
the average running time for the industry is 80% against
8134% last week. The statement says:
The sharpest drop in many weeks occurred in the ingot•production of
U. S. Steel Corp. in the past week. Present rate is at approximately
8634% of capacity, compared with 89% a week ago. Two weeks ago the
corporation was running at 90%.
For the independents the rate is now at approximately 78%. against 80%
in the preceding week. Two weeks ago the independents were running at
81%
3215
Average for the entire industry is now placed at slightly better than 82%
of capacity, contrasted with 84%% in the preceding week and 85%%
two weeks ago.
At this time last year the Steel Corporation was running at nearly 87%.
while independents were at only 73% and the average for the industry was
80%.
It is practically certain that further reduction will be made in the coming
weeks. It is known that the scheduled rate for the Steel Corporation and
leading independents for the current week is lower, and predictions are
heard that the Steel Corporation will probably be running at 85% or even
less, with prospects favoring a rate between 76% and 77% for independents.
This would mean an average of between 80% and 81% for the industry.
Curtailment is normal for this season. Large consumers have covered
their requirements and are not coming into the market for large tonnages,
except where the material is known to be needed in the near future because
of new orders taken by these users.
There has been rather steady buying in recent weeks, but in most products it has been of the hand-to-mouth variety, and few impressive contracts have been placed with the large companies. Specifications against
old contracts, however, have been running at a fairly satisfactory rate
and have been responsible for keeping operations as high as they have been
In recent weeks.
Prospects are that there will be a rather steady downward trend in operations until the mid-summer, although steel authorities do not expect
activities to get down as low as they were last year in the dullest period.
This view is based on the expectation that contracts now on hand will be
specified against.
Sugar? Proders' Asaociation Formed at
Washington, D. C.
Under the presidency of E. A. Burguieres of New Orleans
the Domestic Sugar Producers' Association has been formed
with headquarters at Washington, D. C. The election
of officers occurred on May 13, those elected besides the
President being First Vice-President, M. W. McCormick,
Menominee, Mich.; Treasurer, R. D. Mead, Washington;
Executive Vice-President, John B. Pratt, Washington,
and Secretary, M. V. Bromberg, Washington. According
to the Washington correspondent of the "Journal of Com'merce," fundamentally the Domestic Sugar Producers'
Association, it was stated by its new President, is organized
to encourage the development of sugar beet growing by American farmers, who now have more than $250,000,000 invested
in the industry aside from the value of farm lands, and to
advance the output of sugar cane by American Continental
producers, as well as those in Hawaii and Porto Rico.
The same paper quotes Mr. Btaguieres as saying:
Domestic
"While the sugar requirements of the United States run to approximately
6,000,000 tons a year, it is a notable fact that over 60% of this is imported
from Cuba and the Philippines. The United States sends out of the
country each year upward of $350,000,000 to purchase foreign sugar that
could be produced at home. Sugar exportations from the Philippines to the
United States, which approximated 550,000 tons in 1927,come in duty free.
"The huge importations from Cuba, which approximated 3,649,000 tons
In 1927, are made possible by a 20% preferential rate in tariff allowed that
country under the Reciprocity Treaty of 1903.
"The growth of sugar beets and cane is essential to the prosperity of
agriculture in many localities over a wide expanse of the country, where It
is, in fact, the very soul of the farmers' existence. The Domestic Sugar
Producers' Association intends to aid in encouraging and developing this
growth."
It is stated that the association is opposed to the granting
of any further preferential tariff privileges, such as those
enjoyed by Cuba and the Philippines. The organization, it
s further stated, has been formed by the United States Beet
Sugar Association, representing growers in California„
Colorado, Utah, Washington, Nevada, Montana, Wyoming,
Iowa, Kansas, North Dakota, Idaho, South Dakota
Nebraska, Wisconsin, Michigan, Indiana and Ohio; the
Hawaiian Sugar Planters' Association, cane sugar growers
American Sugar Cane League of the United States, Inc.,
representing Louisiana, Georgia and Texas growers, and the
Association of Sugar Planters of Porto Rico, producers of
cane, all of which have headquarters at Washington, D. C.
Committee of League of Nations Recommends Inquiry by League Into Sugar Industry—League
Also Asked to Investigate Coal Industry.
According to an Associated Press cablegram from Geneva
May 17 an exhaustive inquiry into the crisis in the sugar
industry by the League of Nations seems a certainty. Indicating that the League's attention has also been directed
to the coal industry the cablegram said:
The special sugar committee of the International Economic Conference
agreed today upon upon the text of a resolution emphasizing the worldwide importance of the problem and the desirability for its urgent treatment
and recommended to the Council of the League to request the League's economic organization to undertake as soon as possible an investigation of all
the factors influencing the production, consumption and international
commerce in sugar with the assistance of experts, the Council would subsequently decide whether a special international conference would be the best
means of finding a solution.
A telegram was received from the Beet Sugar Federation of Prague emphasizing the importance of the beet sugar Industry to European economy,
declaring that no durable solution of the sugar problem is possible without
taking into account the interests of beet sugar producers.
The conference also voted to ask the League to investigate the crisisk
the coal industry.
3216
FINANCIAL CHRONICLE
[VOL. 126.
One of the features of today's discussion was a statement by Vernon
As already indicated by the revised figures above, the total production.
Willey, English delegate, that during the post-war period the balance be- of soft coal for the country
as a whole during the week ended May 5 is
tween cane and beet sugar shifted, production now being about one-third estimated at 8,174,000
net tons. Compared with the output in the prebeet to two-thirds cane. He said that the increase of output of beet sugar ceding week, this is a
decrease of 18,000 tons, or 0.2%•
in the United States was more rapid than in any other country and has
The following table apportions the tonnage by States and gives
comalmost doubled since the war. This development, said Mr. Willey, means parable figures for
other recent years.
that purchases of sugar by the United States in Cuba will logically decrease
Estimated IVeekly Production of Coal by States (Net Tons).
and consequently do not relieve the situation in Cuba.
Although Cuba has a vital interest in the sugar problem her permanent
Week Ended
May
May 5
April 28
May 7
May 8
Average
representative at Geneva, Guillermo Blanck, was unable to participate in
State1928.
1928.
1.927.
1926.
1923.a
today's discussion, not having been appointed a member by the League Alabama
338,000
320,000
319,000
334,000
398,000
Council of the Consultative Committee now sitting.
Arkansas
Earlier press advice from Geneva (May 7) stated:
Director General Gerard of the Central Industrial Committee of Belgium
wrote to the League of Nations that the present depression in sugar enterprise suggested the desirability of considering the expediency of concluding
another international sugar convention on the same lines as that of 1902,
the results of which, he said, were extremely beneficial to all the countries
concerned.
M Gerard added the belief that the different countries and in any event
Belgium, were prepared to make an effort to frame a new sugar convention,
and his request to put the question upon the agenda was granted.
Survey of Operating Expenses and Profits of Wholesalers of Plumbing and Heating Supplies by New
York University Bureau.
The New York University Bureau of Business Research
recently completed its annual summary of the operating
expenses and profits of wholesalers of plumbing and heating supplies. This summary covers supply wholesalers in
the northeastern section of the country, according to the
Bureau's announcement May 17, which states:
The following statement presents the results secured for thirty companies which reported both for 1926 and 1927:
22,000
28,000
22,000
16.000
20,000
Colorado
127,000
174,000
122,000
146,000
168,000.
Illinois
504,000
465,000
73,000
920,000 1,292,000
Indiana
206,000
200.000
109,000
338.000
394,000
Iowa
37,000
39,000
14,000
75,000
80.000
Kansas
22,000
24,000
10,000
75,000
56,000
Kentucky-Eastern
918,000
886,000 1,002,000
814,000
679,000
Western
253,000
316,000
415,000
215,000
183,000
Maryland
42,000
43,000
41,000
47,000
47,000
Michigan
12,000
12,000
11,000
9,000
12,000
Missouri
45,000
54,000
15,000
36,000
56.000
Montana
39,000
46,000
42,000
30,000
42,000
New Mexico
54.000
62,000
52,000
45,000
57,000
North Dakota
15,000
18,000
12,000
16,000
14,000
Ohio
197,000
197.000
112,000
416,000
860.000
Oklahoma
44,000
39,000
45.000
43,000
46,000
Pennsylvania
2,279,000 2,284,000 2,201,000 2,448,000 3.578.000
Tennessee
106,000
110,000
92,000
92,000
121,000
Texas
14,000
15,000
19,000
14,000
22,000
Utah
60,000
67,000
58,000
58,000
74,000
Virginia
209,000
211,000
275,000
234,000
250,000
Washington
36,000
37,000
36,000
34,000
44,000
W. Virginia-Southern_b 1,813,000 1,751,000 2,226.000 1,850,000 1,410,000
Northern c
697,000
687,000
785,000
590,000
823,000
Wyoming
84.000
105,000
74,000
82,000
110,000
Other States
1,000
2,000
3,000
4,000
5,000
Total bituminous coal
8,174,000 8,192,000 8,185,000 8,962,000 10,878,000
COMPARISON OF PROFIT AND LOSS ITEMS FOR 30 IDENTICAL
Total anthracite
1,826,000 1,889,000 1,866,000 1,972,000 1,932,000
SUPPLY WHOLESALERS: 1926 AND 1927 (PERCENTAGES
Total all coal
OF NET SALES).
10,000,000 10,081,000 10,051,000 10.934,000 12,810,000
Average Of 30 Companies.
a Average rate maintained during the entire month. b Includes operations on
1927.
1926.
the N. & W.; C. & O.; Virginian: K. dr M.; and Charleston division of the B.& 0.
Itemc Rest of State, Including Panhandle.
Cost ofgoods sold
78.32
78.34
Gross profit
21.68
21.66
ANTHRACITE.
Operating expenses
19.33
18.14
Net profit (as reported)
The total production of anthracite during the week ended May 12 is
2.46
3.52
Net income (as reported)
2.17
3.37
estimated at 1,888,000 net tons. This is an increase of 62,000 tons, or
3.3%, over the output in the preceding week. Production in the week of
Number of turnovers
4.87
5.05
1927 corresponding with that of May 12 amounted to 1,989,000 tons.
The
Bureau states that the foregoing figures shaw conclusively that the Eastern Supply Wholesalers on the average operated with a larger percentage of expense and a lower
percentage of net profit in 1927 than in 1926, in spite of the
fact that the percentage of gross profit was larger in 1927.
Operating expenses in 1927 averaged 19.33% of net sales
as against 18.14% in 1926, an increase of 6.6%. Net profits,
as reported, averaged 2.46% in 1927 as against 3.52% in
1926, a decrease of 30.1%. The average number of stock
turnovers reported by the identical companies, decreased
from 5.05 times in 1926 as against 4.87 times in 1927. The
identical companies of the medium-small group (annual
sales volume of $500,000 to $1,000,000) show the only increase in stock turnover. They also show the lowest operating expenses of any group. They report the largest average
net profit (3.05%) and net income (3.3%) of any group.
Bituminous Coal and Anthracite Production Increases
Slightly-Coke Declines.
Slight increases in the production of bituminous coal and
anthracite during the week of May 12 were reported by the
United States Bureau of Mines. Bituminous coal produced
amounted to 8,382,000 net tons, a gain of 208,000 net tons
compared with the preceding week and a loss of only 20,000
tons compared with the corresponding week of 1927. Anthracite production rose 62,000 tons to 1,888,000 net tons
and compared with 1,989,000 tons in the corresponding week
of 1927. The output of beehive coke fell from 92,000 tons
in the week of May 5 to 87,000 tons in that of May 12, according to the Bureau of Mines report from which we add:
BITUMINOUS COAL.
The total production of soft coal during the week ended May 12, including lignite and coal coked at the mines, is estimated at 8,382,200 net tons.
Compared with the revised estimate for the preceding week, this is an increase of 208,000 tons. or 2.5%. Production during the week in 1927
corresponding with that of May 12 amounted to 8,402,000 tons.
Estimated United States Production of Bituminous Coal (Net Tons), Incl. Coal Coked.
1923
1927
Cal. Year
Cal. Year
1Veek.
Week.
to Date.
to Date.a
8,424,000 202,427,000
8,192,000 160,196,000
April 28
1,404,000
1,588,000
1,365,000
2,006,000
Daily average
8,185,000 210,612,000
8,174.000 168,370,000
May 5_b
1,364,000
1,362,000
1,575,000
1,970,000
Daily average
8,402,000 219,012,000
May 12_c
8,382,000 176,752,000
1,400,000
1,566.000
1,397,000
1.940,000
Daily average
a Minus one day's production first week in January to equalize number of day
In the two years. b Revised since last report. c Subject to revision.
The total production of bituminous coal during the present calendar year
to May 12 (approximately 113 working days) amounts to 176,752,000 net
tons. Figures for corresponding periods in other recent years are given below:
1927
183,813,000 net tons
219,012,000 net tons' 1924
1926
1925
199,941,000 net tons 1923
173,904,000 net tons 1922
206,751,000 net tons
158,517,000 net tons
Estimated United States Production of Anthracite (Net Tons).
1928
1927
Cal. Year
Cal. Year
Week EndedWeek.
to Date.
Week.
to Date.a
Apr. 28
1,889.000 23,362,000
1,921,000 25,404,000.
May 5_b
1.826.000 25,188,000
1,866,000 27,270,000
May 12.c
1,888,000 27.076.000
1,989,000 29,259,000.
a Minus one day's production first week in January to equalize number of days
In the two years. b Revised. c Subject to revision.
BEEHIVE COKE.
The total production of beehive coke for the country as a whole during
the week ended May 12 amounted to 87,000 net tons, as against 92,000
tons in the preceding week. The decrease was largely in the Pennsylvania-Ohio group. The production of beehive coke during the week in
1927 corresponding with that of May 12 amounted to 147,000 tons.
Estimated Production of Beehive Coke (Net Tons).
-Week Ended
1928.
1927
May 12
May 5 May 14
to
to
l928.c1927.
1928.b
Date.a
Pennsylvania & Ohio
65,000
70.000 112,010 1,262,000 2.776,000
West Virginia
10,000
10,000
15,000
236,000
313,000
Ala., Ky., Tenn. & Georgia_
3,000
4,000
5,000
85,000
107,000
Virginia
5,000
4,000
7,000
89,000
136,000
Colorado dr New Mexico
2,000
2,000
4,000
47,000
75,000
Washington & Utah
2,000
2,000
4,000
38,000
76,000
United States total
87,000
92,000 147,000 1,757,000 3,483.000
Daily average
14,500
15,300
24,500
15,400
30.500
a Minus one day's production first week In January to equalize number of days
In the two years. b Subject to revision. c Revised.
The estimate of production of bituminous coal in the
United States during the week ended May 19, prepared by
the National Coal Association from preliminary shipping
reports, shows a total of about 8,200,000 net tons.
Revised Figures on Production of Coal in April.
A preliminary report of the production of coal during the
month of April 1928 was given on page 2896 of our May 12
issue. The United States Bureau of Mines has now issued
the following revised data, making the production of soft
coal during the month of April 32,188,000 not tons, as against
43,955,000 tons in March. The average daily rate of output
in April was 20% less than that for March.
The production of anthracite increased from 5,497,000
net tons in March to 6,909,000 tons in April, and the average
daily rate of output was 41% higher in April than in March.
MONTHLY PRODUCTION OF BITUMINOUS COAL AND ANTHRACITE
IN APRIL (Net Tons).
iltillMirtOUS
Month.
Total
Produaion.
Anthracite.
No. of Average
Total
Working per WorkProDay. ing Day. duction.
No. of Average
1Vorking per WorkDays. Mg Day.
February
March
April_a
41,351,000
43,965,000
32,188,000
24.9
27.0
24.7
1,661,000 5,582,000
1,628,000 5,497,000
1,303,000 6,909,000
24.5
27.0
24.0
228,000.
204,000
288,000,
April 1927
34,674,000
25.7
1,349,000 7,127,000
25.0
285 000.
•Revised.
MAY 26 1928.]
FINANCIAL CHRONICLE
Anthracite Employment Higher in April, According to
Index Numbers of Philadelphia Federal Reserve
Bank..
Employment in the anthracite industry increased 4.3%
from March to April, according to index numbers prepared
by the Federal Reserve Bank of Philadelphia, on the basis
of reports of collieries to the Anthracite Bureau of Information. The bank, under date of May 22, says:
This gain doubtless reflects improved operating conditions in the industry following the announcement of the usual spring price reductions.
The volume of wage payments reported in April was somewhat smaller than
that of a month earlier, but this total represents payments for tonnage
actually mined during the latter half of March, before the price reductions
became effective. As compared with corresponding months of 1927. both
3217
employment and payrolls have continued at lower levels. The monthly
changes in employment and payrolls of reporting companies are shown in:the
accompanying tab e.
INDEX NUMBERS-1923-25 MONTHLY AVERAG100.
Wage Payments.
Employment.
January
February
March
April
May
June
July
August
September
October
November
December
Revised.
1926.
8.1
36.7
111.4
114.6
115.8
116.9
116.9
117.8
118.0
118.9
119.3
119.9
1927.
119.6
119.2
114.3
115.5
119.0
118.7
116.9
117.1
118.7
119.8
116.6
119.7
1928.
120.2
113.6
*107.7
112.3
____
____
____
____
__
---____
____
1926.
8.2
10.3
120.0
115.7
128.0
131.1
115.5
123.6
126.2
134.6
115.0
127.4
1927.
112.4
105.9
91.3
93.0
120.1
126.6
86.3
90.5
112.0
109.4
116.2
98.1
1928.
98.7
96.0
*88.5
86.1
-
Current Events and Discussions
The Week with the Federal Reserve Banks.
The consolidated statement of condition of the Federal
Reserve banks on May 23, made public by the Federal Reserve Board, and which deals with the results for the twelve
Reserve banks combined, shows an increase for the week
of $40,100,000 in holdings of discounted bills, and decreases
of $31,800,000 in Government securities, of $16,700,000 in
bills bought in open market, of $3,700,000 in Federal Reserve note circulation, of $12,500,000 in member bank
reserve deposits and of $6,300,000 in cash reserves. Total
bills and securities were $8,500,000 below the amount held
on May 16. After noting these facts, the Federal Reserve
Board proceeds as follows:
The principal changes in holdings of discounted bills during the week
were increases of 312,000,000 at the Federal Reserve Bank of Boston,
$11,300,000 at St. Louis, $11.000,000 at New York and $10,600,000 at
Cleveland and a decrease of $16,700,000 at Chicago. The System's holdings of bills bought in open market declined $16,700,000, of certificates of
indebtedness $18,600,000 and of Treasury notes $15.300,000, while holdings
of United States bonds increased $2,000,000.
Federal Reserve note circulation decreased $3.700,000 during the week,
the principal changes being decreases of $3,300,000 at New York.$1,900,000
at Ban Francisco and $1,800,000 each at Philadelphia and Atlanta and an
Increase of $3,300,000 at Chicago.
The statement in full, in comparison with the preceding
week and with the corresponding date last year, will be
found on subsequent pages-namely, pages 3257 to 3258. A
summary of changes in the principal assets and liabilities
of the Reserve banks during the week and the year ending
May 23 1928 is as follows:
Total reserves
Gold Reserves
Increase(+) or Decrease(-)
During
Week.
Year.
-$6,300,000 -$382,400,000
-6,500,000 -377,700,000
Total bills and securities
Bills discounted,total
Secured by U. S. Govt. obligations
Other bills discounted
-8,500,000 +421,000,000
+40.100,000 +418,900,000
+26,000,000 +345.000,000
+14,000,000
+73.000,000
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York-46 Banks.
May 23 1928. May 16 1928. May 25 1927.
$
Loans and investments-total
7,481,110,000 7,533,439,000 6,532,570,000
Loans and discounts-total
Investment-total
964,120,000
956,893,000
756,289,000
49,473,000
701,906,000
58,424,000
Net demand deposits
Time deposits
Government deposits
5,493.719,000 5,573,048,000 5,193,166,000
1,199,561,000 1,195,943,000
956,999,000
14,842,000
10,415,000
26,370,000
Due from banks
Due to banks
112,193,000
89,976,000
111,963,000
1,203,293,000 1,251.361,000 1,080,881,000
Total
4 456,091,000 4,502,044,000 2.964,650,000
3,397,452,000 3,452,170,000 2,256,491.000
1,058,639,000 1,049,874,000
708.159,000
Chicago-43 Banks.
2,075,543,000 2,088,785,000 1,898,260,000
Loans and Investments-total
Loans and discounts-total
1,547,794.000 1,570,283,000 1,430,476,000
15,850.000
809,250,000
745,183,000
14,123,000
706,476,000
709,877,000
527,749,000
518,502,000
467.784,000
U. S. Government securities
228,965,000
Other bonds, stocks and securities_ 298,784,000
229,548,000
288,954,000
194,534,000
273.250.000
189,841,000
15.894,000
177,995,000
19,178,000
Secured by U. S. Govt. obligations_ 15,236,000
795,733,000
Secured by stocks and bonds
736.825,000
All other loans and discounts
Investments-total
-31,800,000
+2,000,000
-15,300,000
-18,600,000
--91,400.000
--48,600,000
--8,800,000
--34,000,000
Net demand deposits
Time deposits
Government deposits
83,934,000
On demand
On time
U.S. Govt.securities, total
Bonds
Treasury notes
Certificates of indebtedness
Returns of Member Banks for New York and Chicago
Federal Reserve Districts-Brokers' Loans.
Beginning with the returns for June 29 last, the Federal
Reserve Board/also begain to give out the figures of the
member banks in the New York Federal Reserve District,
as well as those in the Chicago Reserve District, on Thursdays, simultaneously with the figures for the Reserve banks
themselves, and for the same week, instead of waiting until
the following Monday, before which time the statistics covering the entire body of reporting member banks-now 642
cannot be got ready.
The following is the statement for the New York member
banks and that for the Chicago member banks thus issued
in advance of the:full statement of the member banks, which
latter will not be/available until the coming Monday. The
New York statement, of course, also includes the brokers'
loans of reporting/member banks, which this week for the
first time in several weeks showed a decline, the grand
aggregate of these loans on May 23 being $4,456,091,000,
a decrease of $45,953,000 under last week's total of $4,502,044,000, which latter stands as the highest total of these
loans ever reached.
233,198,000
33,600,000
190,920,000
Secured by U. S. Govt. obligations_ 189,090,000
42,278,000
41,311,000
19,634.000
All other
Loans to brokers and dealers (secured
by stocks and bonds):
1 247,360,000 1,311,820,000
932,161,000
For own account
For account of out of-town banks 1,607,186,000 1,655,587,000 1,172,589,000
1 601,545,000 1.534.637,000
859,900.000
For account of others
Reserve with F. R. Bank
Cash In vault
-17,600,000
+91,000,000
-12,500,000 i-101,900,000
-4,000,000
--2,700,000
230,351,000
Borrowings from F. R. Bank-total
A-94,400,000
-3,700,000 --126,400,000
758,538,000
51,662,000
Reserve with F. R.. Bank
Cash in vault
-16.700,000
Total deposits
Members reserve depoeits
Government deposits
1 986,697,000 1,976,043,000 1,921.013,000
1,076,960,000 1,079,762,000
U. B. Government securities
896,281,000
Other bonds, stocks and securities 909,737,000
Bills boughtin open market
Federal Reserve notes in circulation
5,494,413,000 5,557,396,000 4,611,557,000
49,032,000
47,089.000
Secured by U. S. Govt. obligations_ 34,507,000
Secured by stocks and bonds
2 669,782,000 2,741,461,000 2,131,163,000
2,790,124,000 2,766,903,000 2,433,305.000
All other loans and discounts
Due from banks
Due to banks
182.420,000
16,436,000
1 282,477,000 1,279,855,000 1,2.58,659.000
586.073,000
715,382,000
714,253,000
5,527,000
3,835,000
3,835,000
170,567,000
346,329,000
180,932,000
357,373,000
167,228,000
362,758.000
Borrowings 11om F. R.Bank-total__
40,738,000
62,596,000
21,589,000
Secured by U. S. Govt. obligations_
All other
35,740,000
4,998,000
55,298,000
7,298,000
14,800,000
6,789,000
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
As explained above, the statements for the New York and
Chicago member banks are now given out on Thursdays,
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, now
642, 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 ending with the close of business May 16:
The Federal Reserve Board's condition statement of 642 reporting member banks in leading cities as of May 16 shows increases for the week of
$38.000,000 in loans and discounts, $7,000,000 in investments, $32,000,000
in net demand deposits, 313.000,000 in time deposits, and $21,000,000 in
borrowings from the Federal Reserve banks, and a decrease of $22,000,000
in Government deposits.
Loans on stocks and bonds, including U. S. Government obligations.
were $58.000,000 above the May 9 total at all reporting banks, increases
of $24,000,000 being shown for the New York district, $19,000,000 for the
Chicago district. 89,000,000 for the Philadelphia district and 16,000,000
for the Cleveland district "All other" loans and discounts
declined
3218
FINANCIAL CHRONICLE
$10,000,000 in the Minneapolis district, $7,000,000 in the New York
district, and $19,000,000 at all reporting banks.
Holdings of United States Government securities were $8,000,000 below
the May 9 total, while holdings of other bonds, stocks and securities were
$15.000,000 higher than a week ago at all reporting banks, $12.000,000
higher in the San Francisco district, and $7,000,000 in the St. Louis
district.
Net demand deposits, which at all reporting banks show an increase of
$32,000,000 for the week, Increased $18,000,000 each in the San Francisco
and Cleveland districts, and $5,000,000 each in the Boston, Atlanta and
Chicago districts, and declined $10,000,000 and $6,000,000. respectively,
In the New York and Richmond districts. Time deposits increased $11.000.000 at reporting member banks in the New York district and $13,000,000
at all reporting banks.
The principal changes in borrowings from the Federal Reserve banks
were a decline of$8,000,000 in the Cleveland district, increases of $8.000,000
and $7,000.000, respectively, in the Chicago and Philadelphia districts,
and smaller increases in most of the other districts.
A summary of the principal assets and liabilities of 642 reporting member
banks, together with the changes during the week and the year ending
May 15 1928. follows:
Increase (-I-) or Decrease (—)
During
May 16 1928.
•Week.
Year.
$
$
Loma and investments—total
22,591,427,000 +45,325,000 +1,999,013,000
Loans and discounts—total
15,938,963,000 +38,268,000 +1.424.642,000
Secured by U.S. Govt. obligations 126.09LOCO —10,348,000
—27,970,000
Secured by stocks and bonds
6,894.948,000 +67,898.000 +1,085,793,000
All other loans and discounts
8,915.924,000 —19,282,000 +366,819.000
Investments—total
6.654,464,000 +7,057,000 +574,371,000
U. S. Government securities
3,016,884,000 —8,369,000
Other bonds, stocks and securities 3,637,580,000 +15,426,000
Reserve with Federal Reserve banks. 1,762,559,000 —41,370,000
Cash In vault
236,367,000 —13,278,000
Net demand deposits
13,875,252,000 +32,426,000
Time deposits
6,972,044,000 +12,890.000
Government deposits
149,959,000 —22,096,000
SSW
Due from banks
1,196,686,000 +35,446,000
Due to banks
3,344,942,000 —27,320,000
Borrowings from F. R. banks—total 629,284,000 +21.328.000
Secured by U.S.Govt. obligat'ns_
All other
•May 9 figures revised.
458,946,000 +34.031.000
170,338,000 —12.703.000
+355.388,000
+218,983,000
+61,346,000
—22,284,000
+635.791,000
+752,132.000
—44.691,000
+21.912,000
+129.122,000
+324,476,000
+274.371.000
+50,105.000
[VoL. 126.
may be forced to liquidate is causing tight credits, thus restricting
legitimate business. Effects of recent events in China are felt to some extent
among the Chinese dealers in piece goods. The textile market generally
is dull with stocks below normal. Automotive sales are decreasing partly
as a result of buyers waiting the arrival of new models. Building and construction continue active. The slight increase in rubber prices has had
little effect on the market as further sharp declines are expected after
Nov. 1.
CANADA.
Imports into Canada from the United States during March amounted to
$82.697,000, as compared with a valuation of 876,695,000 last year. Automobiles and farming implements are the outstanding items in the increase,
registering gains of 29% and 61% respectively. Exports to the United
States, totaling $44,907,000 were slightly under the corresponding figure
for last year.
During the week ended May 18, wholesale trade was reported as fair to
good in the larger centers. Collections were said to be good in Toronto.
satisfactory in Saint John,and fair in other cities. More favorable weather
has stimulated general trade, although floods in Ontario have depressed
business temporarily in some of the less important commercial areas. Wheat
seeding is practically completed in Manitoba;from 60% to 75% completed
In the southern part of Alberta, and from 35% to 55% completed in the
central and northern part of the Province. In a number of districts sowing
of coarse grains has been started. Revenue car loadings for the week
ended May 5 show a substantial increase over the previous two weeks,
and the cumulative total for 1928 is well ahead of last year's figure. Total
production of pig iron in Canada during April was about 5% under the total
for March,and 4% less than in April 1927. Output of steel castings is still
about 20% over last year's figure, although April production declined some
5% from the March figure. The Canadian council of Agriculture has made
application to the Advisory Board on Tariff and Taxation for the removal
of the duty on cement; the Canadian Consumers League has also petitioned
the Board for reduction of the tariff on paints. Building and construction
continue at record levels, the total of permits awarded during April being
exceeded only by the figure for May. 1926.
CHILE.
Business in Chile continues to improve, and wholesalers are more confident. Retail sales continue to show decided increases over last year's sales,
and money for commercial loans is plentiful. Since prices are considered
satisfactory, conditions in Central and Southern Chile, the agricultural
sections of the country, are likely to improve, and since the nitrate area in
Northern Chile is now operating at the highest capacity for two years, the
outlook for the entire country is favorable.
FRANCE.
Cash subscriptions to the new French loan closed on May 15 upon reaching
10,000,000,000 francs. June 8 is fixed as the limit for conversions, but the
presentation of National Defense bonds for conversion into bonds of the new
Summary of Conditions in World's Market According loan
may be stopped before that date. The success of the loan, which exto Cablegrams and Other Reports to the Depart- ceeds all expectations, assures a reduction of the State's indebtedness
to the
of France to a figure which will be approximately covered by the credit
Bank
ment of Commerce.
resulting from the revaluation of the bank's gold reserve if stabilization Is
The Department of Commerce at Washington releases effected at the present level. The increase of the interest rate for the midfor publication to-day (May 26) the following summary of monthly security carry-over to 9% as compared with 5X % at the end of
April, has failed to reduce activity on the Bourse to any material extent.
conditions abroad, based on advices by cable and other Stockholders
of the Comptoir National d'Escompte have authorized the
means of communication:
eventual increase of that bank's capital from 250,000,000 to 525,000,000
francs, presumably in anticipation of the revaluation of its assets in the
ARGENTINA.
The general commercial situtation was satisfactory throughout the week, event of stabilization. No immediate increase is intended. Total tax
returns
under the general budget for the first four months of this year were
although owing to rain and the strike of Rosario exports fell off slightly.
A first official Argentina estimate places this year's corn crop at 7,700,000 12,340.000,000 francs, of which 12.100,000,000 francs were from permanent
metric tons. As compared with the corresponding period of 1927, exports sources. Independent receipts of the autonomous office for the amortizaduring the first four months of 1928 decreased 11.7% in volume but in- tion of the public debt totaled 2,030,000,000 francs.
creased 5.5% in value. Exports of meats decreased 27% in volume and
GREECE.
5% in value; of hides increased 1.8% and 52%. respectively; exports of
In spite of the considerable property damage sustained in the vicinity of
wheat and linseed increased, but exports of corn decreased about 50% in
Corinth,
as
a
result
of
the recent earthquakes, reports indicate that the
volume, and are largely responsible for the diminution in the volume of
vineyards have not suffered, and that the currant crop and currant exports
total exports.
will
be
only
slightly
affected.
To alleviate the conditions of the cultivators
AUSTRALIA.
who have lost their other property, the National Bank has decided to grant
The decline in imports and the slowing down of domestic business is loans to them
on favorable terms for the purpose of carrying on cultivation
causing a noticeable easing in money rates. Domestic business has iraof the vineyards. The earthquake disaster has temporarily overshadowed
-proved slightly in the past month and collections are somewhat easier, but
the floods of the Strouma valley, which have proved more serious than at
Ithe outlook still indicates that no permanent improvement can be expected first reported.
It is estimated that an area of 10,000 streirtmata (about
" before October, as little produce remains from the past season to be mar- 2,500 acres) has been
inundated, causing considerable Injury to the cereal
keted. Construction activities show no improvement and the labor situa- and tobacco crops.
Tobacco and currants constitute approximately 70%
tion is unsettled as unemployment increases slightly. As a result of the of the value of total exports.
kt.
Interstate shipping strike, 15 vessels are tied up. Imports for March
HAWAII.
aggregated £11,026,000 in value, the lowest since 1925. and compared with
Heavy rainfall on all islands during the past month has filled reservoirs
.C14,219,000 for March of last year. Of the total imports in March,
about 22.5% came from the United States against 27.5 for the corresponding and irrigation ditches, making the agricultural outlook for 1928-29 unusually
good.
Local estimates of May first place the current sugar crop yield at
month of 1927.
BELGIUM.
886,000 short tons,of which 858,000 tons will be available for export. With
Industrial conditions in Belgium improved moderately during the first the cane tonnage for next season now in sight, it is anticipated that the next
half of May. Principal features in the economic situation include a tem- crop output may exceed 900,000 short tons. About 65% of the currant
porary improvement in the coal situation, a seasonal renewal of building crop has been harvested to date. The Maui pineapple harvest will be early
activity and firm conditions in the metallurgical industry. The earliest this year, according to present indications, and it is expected that the peak
delivery dates for new orders for iron and steel products are July and August will be reached about June 25. In Oahu it Is expected about four weeks
later.
and buyers are experiencing great difficulties in placing orders. There
HUNGARY.
has been no change in the poor situation of the window glass industry and
Imports in March amounted to 107,800,000 pengos, and exports to
heavy stocks are accumulating. The plate glass industry Is reported pros• Pcrous and the cement industry is working a full capacity. The market for 73,100,000 pengos; in the first three months of 1928, imports totaled 288,automobiles remains very satisfactory and several importers of American 600,000 pengos, and exports 187,800,000, leaving an adverse balance of
makes have already exceeded their total business during 1927. Sales of 100,800.000 pengos, as against 72,400,000 In the same period of 1927.
leather have Improved and shoe sales are active. Increased operating costs Savings deposits in the Postal Savings Bank and the 13 principal Budapest
in the textile industries are causing concern, but in general, cotton spinning banks increased from 394,600,000 to 403,400,000 pimps in March, and
mills are operating at capacity and weaving mills have orders for the next deposits on current accounts from 667,700,000 to 699,900,000 pengos,
three months. With a drop in the demand from the United States, the lace savings deposits now amount to 40.3% and deposits on current accounts
trade is less satisfactory. Money remains plentiful and large sums have to 90.8% of the 1913 deposits. (I'engo equals 50.175.)
been moving to the Paris stock exchange in order to profit by rises in the
INDIA.
French market. The condition of Government finances is very satisfactory.
Protracted strikes and lockouts are affecting the general business and inIt is estimated that the 1927 budget will show a large surplus and that the
bxcess of receipts over expenditures in 1928 will be even more satisfactory. dustrial situation throughout India. Attempts by industrialists to increase
the individual output as an alternative to wage reduction is being steadily
BRAZIL.
resisted and deadlocks continue with little hope of early settlement. It is
.
The movement of commodity markets during the week was dull. Coffee expected locally that strikes at Bombay mills will affect general import
and exchange continued steady and there was fair demand for high grade business; domestic consumption of raw cotton, coal and electric Power;
cottons. The Banco de Credit° de Sao Paulo has suspended payments, railway earnings, and Government revenue. At Calcutta the situation is
the capital involved being reported at about3.000 contos (roughly $360.000)• unchanged, with one railway workshop, two large engineering firms, one
This is a small and unimportant bank and the failure apparently has had no jute mill, and three jute presses closed. Crop reports from various sections
effect on other banks.
of India are only fair to average. Rain is needed in most sections. Rust
BRITISH MALAYA.
and dust storms have damaged Punjab wheat in many districts. Tea
While actual business transactions are somewhat curtailed, the outlook gardens are reported suffering from drought but Jute is reported to be prois not altogether unfavorable. Fear that some important Chinese firms gressing favorably.
MAY 26 1928.1
FINANCIAL CHRONICLE
MEXICO.
Business in Mexico City was adversely affected during the week ended
May 19. by strikes in the bakeries, dairies, and slaughter houses, which
reduced the supply of bread, milk and meat. However, ample foodstuffs
brought in from neighboring cities were obtainable, but at considerably
higher prices.
NETHERLAND EAST INDIES.
Java business conditions continue sound. Some slackness is expected in
the Outer Possessions, however, as a result of the slump in the rubber
market. Luxury lines especially may be affected. Automotive sales so
far continue active, early business in new models having exceeded most
optonaistic estimates. All crop forecasts are favorable, especially for rice.
The rubber market is fairly calm. It is predicted that the year's output
of native rubber will be materially decreased. Citronella trade shows
unusual activity, with forward transactions well above spot prices.
NETHERLANDS.
General business in the Netherlands remains fairly active and employment
has shown a seasonal improvement. Minor industrial disturbances are having but little influence on conditions, it is reported. Retail sales in most
lines are highly satisfactory and wholesale turnover is good. Industries
have shown a moderate improvement due largely to a better foreign demand. Competition in all lines is increasingly keen and there are many
complaints of close margins of profit. Rubber substitutes are reported
cutting in on sales of leather. Shoe factories are operating at capacity
but at a marrow margin of profit. Surplus stocks of lumber have been
largely cleared and the situation is relatively healthy. Capital issues in
April declined heavily. Annual reports of large banks and industrial
concerns reflect sound conditions. The tendency of the stock exchange has
been generally upwards. The decline in rubber shares has been halted,
there is renewed interest in Royal Dutch petroleum and prices of certain
domestic industrials have increased. Commodity markets In general show
a firm tendency.
3219
184. is unchanged from April and is the same as a year ago. Unemployment in Great Britain on May 7, according to the number of work-people
listed for employment, amounted to 1,104,000; this figure represents a
reduction of 32,000 from the April 30 total but is higher than any other total
since February 27 when the figure was 1,109,000. Unemployment in
Northern Ireland aggregated 39,000 on May 7,which represents an increase
of 4,000 over the previous week but is about equal to the April 9 figure.
Stock of Money in the Country.
The Treasury Department at Washington has issued the
customary monthly statement showing the stock of money
in the country and the amount in circulation after deducting the moneys held in the United States Treasury and by
Federal Reserve banks and agents. It is important to note
that beginning with the statement of Dec. 31 1927 several
very important changes have been made. They are as follows: (1) The statement is dated for the end of the month
instead of for the first of the month;(2) gold held by Federal
Reserve banks under earmark for foreign account is now
excluded, and gold held abroad for Federal Reserve banks is
now included; (3) minor coin (nickels and cents) has been
added. On this basis the figures this time are for April 30
1928. They show that the money in circulation at that date
(including, of course, what is held in bank vaults of member
banks of the Federal Reserve System) was $4,748,458,057,
as against $4,748,934,015 Mar. 31 1928 and $4,890,607,185
April 30 1927, and comparing with $5,760,953,653 on Oct.
31 1920. Just before the outbreak of the World War, that
is on June 30 1914, the total was only $3,458,059,755. The
following is the statement:
PERU.
Business and economic conditions are considered sound, with merchandise
movements expanding slightly in response to the cotton crop movement,
which it is believed, will increase greatly during June. July, and August.
The outlook for profitable crop returns is said to be excellent, and orders
for foreign merchandise are reflecting the situation. Exchange on May 11
was quoted at $4.01 to the Peruvian pound. The Caja de Ahorros Bank
n
.3 CO en a
Z .41 .4 M 4 On
0 ei
0 000
of Callao is being liquidated by Government decree local depositors being
= 0
_ vE
' • 5 5.0,;
§g
4 .-„
4 C"'
i3 '''
the only ones affected. A recent Government decree necessitates the intro,P,Pc4 5.0.
• .vs Pea,%,
g.
:.... •r. 'vs
.... .0 „
duction of pneumatic dust absorbing machines in all textile mills
using
g.g c'e'2'4. 8•1 2.70 8
o ,,,. 0, ;,, e. pc,
combing machines, such installations to be made within six months.
PHILIPPINE ISLANDS.
10 0 OD 000
tO
5
0 A -4 0 V 00
Normal inactivity which prevails in the Philippines from April
to August
..st
Is somewhat accentuated on account of dullness in
export markets and uncertainty resulting from present unsettled conditions in the
.
tte
n
0
Far East.
...3 CT
-10 41 o-• 3.4 ,-,
0
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.
tO
0
which are affecting Chinese dealers in the Philippines. The textile market
- tO. 0
continues unsatisfactory with heavy stocks and very slow
03 tO co 0
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offtake. April
A Co 41.. 00 0 Ce co
ow 03 c. CA
arrivals of American goods were smaller than for many months. Competition in the trade is extraordinarily keen. Automotive sales have declined.
en co 0, c0
;"' -°' 12 -0 t cs o
Business in tires, however, registered some improvement. The outlook
for the new sugar crop continues favorable. Grinding of the current
o,
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crop
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Is practically completed and an output of 570,000 metric tons expected. be 010 0 A. te OD
te .
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Abaca prices have recovered somewhat from the recent speculating tendenO I:21:. k 4.
;10.
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cies. Copra scarcity continues despite a slight increase in output.
003.000A
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PORTO RICO.
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General business conditions in Porto Rico during the past week
.2
o.,
V
showed .
:4 A :c 4.• c.2
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no increased activity and collections still remain difficult. Rice dealers
o
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reported to be increasing their stocks in the face of a rising
10
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movement is expected to be of short duration in view of the
- -. A
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lack of interest
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on the part of retailers. Sugar mills are now inviting bids on a
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are receiving 0
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very competitive responses. Continued rains have greatly
01
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benefited the 0000CAO.
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cane and fruit which were being affected by the long drought.
0la O ',.. 0
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Shipments 6
0 CD V V te C.
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of merchandise from the United States to Porto Rico during
00000oD
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amounted to $7.329,000 as compared with $8,867,000 In
o
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.
March, 1927. 0000.
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and import from foreign countries during March totaled $1,450,000
as
compared with $1,393,000 in the corresponding period of
1927. Porto
0010
to
Rican exports to foreign countries during March amounted
co
00
to $639,000 as
compared with 3652,000 in the same period of last year. San
03 13
.
V
Z.4 io
Juan bank
0. 0 C4
V
VI
clearings for the first 18 days were $14,883,000 as compared with
$15.373.00 V
CO
000 in the corresponding days of 1927.
0 Cu CO
03
0
0 .-. .2
-.3
-3
SWEDEN.
•
b.
t'S
e
....
0 00 00 00 0
Although general conditions continue sound the effect of the
...
.4
prolonged 0040
3 5
b35
CA
0
00
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labor conflicts is apparent in the adverse trade balance for April,
14 0
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1
0
.
4 V 000
'0 0
estimated 0
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ae
C 0
O. 03 _0 03 A
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at 50,000,000 crowns and in the heavy reduction In foreign credits
03 .
A CO A. 00:0
0
at the .4 -4 CA 00 -4
Bank of Sweden. The iron mining and sugar industries have not
cs 1.. ..-•
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.t.
0
yet settled
A
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01
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their labor difficulties. The Government has refused the Riksdag
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.
to p. co co cs
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to raise duties on iron and steel on behalf of the Swedish industry which
a,.... .... I.,0 W
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o
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10 cs
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having to face severe continental competition. Note circulation
. 00 A 0
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decreased CA CO 01 CO W .4
9,000,000 crowns during April while the gold reserve remained
unchanged. Ce CA C4
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be
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Deposits at private banks showed a slight decline. Rediscounts at
003003
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the Bank 0000-40.4
1.3 14 -c,'a. 010
1.4 03 100
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lo
of Sweden markedly increased. Loading industrial shares advanced to
0.00300 cs 0
te 0 le 00 ...1
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new 5010
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records and annual reports of numerous industries indicate improved
.... ._, ._.
earn....
ings in 1927 over previous year. The production of the very
C.3
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00
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important
be
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Ce A
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00
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export commodities, lumber, woodpulp and paper, is again back
.
be 03 4.4 0
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to normal.
English lumber buyers are still hesitant but the continental
.0,"
1s- Cs lo ln•
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en
.. le 00 V be
0 03 03 90
demand is
0 CO 0 CO
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steady. Automobile sales and imports are high and it would seem
1-1 C0 00 C4
that 1928
-CP. .00 00 1.4
-c
,'as to 1,10
le 10 1-. 1..
O "co
sales will exceed those of last year. The wholesale index for April
ts, 0 6+ CO
V OA 0 -4 0 Ce
00.4.4
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was 147
10 0, C0 0
0 A A 0 C4 Ob
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03
a rise of 2 points from the March figure, principally because of
.
OD
de
.
CA
A
A
the increase
A
in the price of vegetables.
;9•1 E.
g:
8,225,271,179
8,259.998,956
8,712,813,297
8,478,904,551
5,395,314,227
3,798,456,784
nn7 (1514 41311
0
01
0
Total
03
Total
be
4310
.
z
8
Held by
Federal
Reserve
Banks
and
Agents f
CO
AU
Other
Money
-4
-
Held for
Federal
Reserve
Banks
and
Agents
00 -5. -... V be V
'n
Anti Held in Res've against
Trust against United States
Notes
Oosel et Silver
Certificates (et (and Treasury
Notes
Treas'y Notes
of 1890)
of 1890)
-n
,_. - - -..
:„., -c„1„
...
0
b co
. v 03 c ....
0 Ple 0. 03 0 CA
00
0 00 0 CD 0 CO
UNITED KINGDOM.
le I0 'ea lo Int lo
10 i...leles.
"o "o 10 -.... 1.., b 10
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m o..- 0,0 c.,
coo0 ,
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s. en 00
The Government bill to provide for amalgamation of the
CO
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CO
V A
01.030
Government
currency notes, and the Bank of England note issues and to center
V
.
ix
'iq
01.21.2
ia 11.• 10
I-4 O
0
0
- ID 'a -14
all note V
le 00 Co 0
.
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CA CO
.
00 03 0 01
Issues in the Bank is passing through the required stages in the
.
..4
.
03 be CO 03 0 14 0
A A.1 0
House of
Commons apparently without much opposition. The proposed
fiduciary .
.
CO A 0 A. A
A
Issue limit of £260,000,000 (about £4,500,000 below the legal limits of
CO A 0 W
.
Ite
0
010
03
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be
243
present fiduciary issues) is felt in some quarters to be rather low; however
ea t0 lc o 0. .s.
0 Co C0 00 03 . 0 03
o
,...
the
proponents
bill
of
have pointed out, elasticity 18 provided
.
.
.
.
as the
by 0... 0
0.0 .... ....
.
2 .5
03
tel
which the Treasury upon request from the Bank,may,if occasion demands, 0. 00 41 -.4 0 CO
a
ts
raise the authorized limit above .C280.000,000 for a period of six months 03 be
be
000
.
a
ii?70:9'1
and such authorization may be renewed up to a total period not exceeding lo '0 b io M b
o o 0 o o c2
two years. The fusion of the note issues is to take effect on a date to be 000gsom.
iii
a. C
o
appointed by an Order-in-Council and from such appointed time all of the
a Includes United States paper currency in circulation In foreign countries
gi and the 10 shilling currency notes outstanding will be deemed to be bank- the
and
amount held by the Cuban agencies of the Federal Reserve Bank
of Atlanta.
notes and the Bank of England will be held liable in respect to them. The
b Does not Include gold bullion or foreign coin other than that held by the
Treasury,
Ministry of Labour's cost of living index (cost of maintaining the pre-war Federal Reserve banks. and Federal Reserve agents. Gold held by
Federal Reserve
standard of living for working-class families) for the beginning of May, at banks ender ear-mark for foreign account Is excluded, and gold held abroad
for
Federal Reserve banks Is Included.
3220
C These amounts are not Included in the total since the money held in trust against
Sold and silver certificates and Treasury notes of 1890 Is Included under gold coin
and bullion and standard silver dollars, respectively.
d The amount of money held in trust against gold and silver certificates and
Treasury notes of 1890 should be deducted from this total before combining it with
total money outside of the Treasury to arrive at the stock of money In the United
States.
e This total includes $15,535,937 of notes in process of redemption, $185,194,532
of gold deposited for redemption of Federal Reserve notes, $11,435,097 deposited
for redemption of national bank notes. $2,430 deposited for retirement of additional
circulation (Act of May 30 1908), and $6.442,598 deposited as a reserve against postal
savings deposits.
I Includes money held by the Cuban agency of the Federal Reserve Bank of
Atlanta.
g Figures revised to conform to changes effective Dec. 31 1927.
Note.-Gold certificates are secured dollar for dollar by gold held in the Treasury
for their redemption; silver certificates are secured dollar for dollar by standard
silver dollars held In the Treasury for their redemption; United States notes are
secured by a gold reserve of 2156.039,088 held in the Treasury. This reserve
fund may also be used for the redemption of Treasury notes of 1890. which are also
secured, dollar for dollar, by standard silver dollars. held in the Treasury. Federal
Reserve notes are obligations of the United States and a first lien on all the assets
of the issuing Federal Reserve bank. Federal Reserve notes are secured by the
deposit with Federal Reserve agents of a like amount of gold or of gold and such
discounted or purchased paper as is eligible under the terms of the Federal Reserve
Act. Federal Reserve banks must maintain a gold reserve of at least 40%. Including the gold redemption fund which must be deposited with the United States Treasurer, against Federal Reserve notes In actual circulation. Lawful money has been
deposited with the Treasurer of the United States for retirement of all outstanding
Federal Reserve bank notes. National bank notes are secured by United States
bonds except where lawful money has been deposited with the Treasurer of the
United States for their retirement. A 5% fund Is also maintained in lawful money
with the Treasurer of the United States for the redemption of national bank trites
secured by Government bonds.
Gold and Silver Imported into and Exported from the
United States by Countries in April.
The Bureau of Foreign and Domestic Commerce of the
Department of Commerce at Washington has made public
its monthly report, showing the imports and exports of gold
and silver into and from the United States during the month
of April 1928. The gold exports were $96,468,659. The
imports were only $5,318,925, of which $3,406,315 came from
Greece and $900,000 came from Canada. Of the exports
of the metal, $71,740,361 went to France, $6,000,000 went
to Italy and $5,408,734 went to Germany.
GOLD AND SILVER EXPORTED FROM AND IMPORTED INTO THE
UNITED STATES-BY COUNTRIES.
Silver.
Gold.
Exports Total.
Refined Bullion.
Total (Includes Coin).
Countries.
Exports.
France
Germany
Greece
Italy
Norway
Sweden
United King'm
Canada
Brit. Honduras
Costa Rica..
Guatemala_
Honduras
Nicaragua
Panama
Salvador
Mexico
Bermuda
Trinidad and
Tobago
Cuba
Haiti
Virgin Islands
of U.S
Argentina
Brazil
Chile
Colombia
Surinam
Peru
Uruguay
Venezuela
British India._
China
Java dz Madura
Other Dutch
. East Indies_
Hong Kong__
Palestine land
Syria
PhilippineIsEda
Australia
Belgian Kongo
Total
[vol.. /26.
FINANCIAL CHRONICLE
Imports.
$
71,740.361
5,408.734
$
11,217
Exports.
Imports.
Exports.
Ounces.
Ounces.
8
356,905
205,461
2,096
1,232
Imparts.
$
5,471
7,103
3,406,315
6,000,000
1,485.032
37,580
100,000
422,167
154
2,323
900,497
35,000
33,486
17.780
12,371
9,612
2,253
113,844
370,936
304,199
741
465
111,424
120
197
2,922,705
230,000 3.268,279
.s 936
it6.6:
9,991
127
18.040
bank notes.
4. The Bank of England, acting in unison with the Treasury, to be
given wide powers to increase the amount of the fiduciary issue.
5. Profits of the note issue to be paid to the Treasury.
The introduction of the "Currency and Bank Notes Bill" in the House of
Commons on Wednesday took the city cmpletely by surprise. As Mr.
Churchill, in his budget statement, foreshadowed the reform to be carried
through in the course of the current fiscal year, it was hardly expected to
take place so soon. In some quarters it was even believed that after all
2,450 there would be a preliminary inquiry before the bill was drafted.
1"
In spite
5.740
117,716 of this, the rapidity with which the Government has acted was, on the
whole,
favorably
commented
upon,
as
the
elimination of the present state
109
10,531
of uncertainty was generally regarded as highly desirable.
870,644
59.593
5.167,000
5,391.783
2.865,539
3,103.725
81.767
350
1,221
300,000
394,720
•
250
The Reserve Question.
Naturally enough, attention is immediately directed to the figure of
£260,000,000 fixed for the fiduciary issue. It was believed in certain
quarters that the occasion of the currency reform would be used for increasing the Bank of England's note reserve. In the event, the fixing of the
fiduciary issue at £260,000,000 results in only an insignificant increase
of the note reserve. The following is a combined bank return, drafted on
the basis of yesterday's figures:
Issue Department.
80
41,641
96,468,659 5,318.925 11,059,659 3.423,217 6.686,909 4,887,262
Bill Providing for Amalgamation of British Note Issues
-Bank of England Powers.
We reproduce further, below, from the London "Financial
News" the text of the bill, introduced in the House of Commons on May 2, providing for the amalgamation of the
currency notes with the Bank of England note issue. Discussing the bill editorially in its issue of May 4 the "Financial News" said:
bill to amalgamate
The Chancellor has not kept us waiting long for the
speech only a week ago.
the note issues, to which he alluded in his budget
actual details, of this
Indeed, it is now clear that the principles, if not the
Elsewhere in our
Important currency step had already been decided.
They embody, in
out.
set
are
bill
columns the main provisions of the new
essence, the recommendations of the Cunliffe Committee of 1919 and the
Committee on the Bank of England and Currency Note Issues which reported in 1925. Both those committees advocated the retention of the
principles of the pre-war system, and the latter committee that the prorn
posed amalgamation should take place after sufficient experience had been
obtained of working under a regime of free gold exporta with a minimum
gold reserve of £150 millions. The policy of the authorities has been
tempered with a wise caution; only now, after three years of gold standard
working, is the step to,be taken which will give to the Bank of England
the control over the note issues which it ought logirsily to have.
The Currency Bill, which was published yesterday, provides, as was
anticipated, for a reversion to the pm-war principle of a fixed fiduciary
issue. On the other hand, impertant new regulations designed to give
greater elasticity are introduced. The main changes introduced by the
bill are as follows:
1. The Bank of England to be given powers to issue notes of one pound
and ten shillings, which will be unlimited legal tender.
2. The fiduciary issue of notes to be fixed at £260,000,000.
3. As from an appointed day, all currency notes outstanding to be
transferred to the control of the Bank of England, and to be known as
12,197
15,580
30,702
81,813
108,247
198
12,799
Essential features of the bill were thus referred to in the
May 4 issue of the same paper:
2,770
1.250
88,759
3,000,000
1,660,000
24,877
414,958
320,000
19
3,970
427,040
195,007
86
352
48,400
3,453
3,500,000
1,680.230
161.910
Despite the numerous suggestions put forward by critics of our present
arrangements, the decision to revert to the principle of a fixed fiduciary
issue will occasion little surprise. Indeed, many reformers had already
ceased to advocate violent changes in regulatory methods and confined
their inquiry to the actual figure at which the fiduciary issue should stand.
The £260,000,000 level fixed in the bill may fairly be stated to represent
a fusion of the note issues on the basis of the existing position. It implies
neither appreciable contraction nor appreciable expansion. Yet provision,
some might say too much provision, is made for "the greater elasticity
. . . than was permitted in the pre-war system" to which Mr. Churchill
so recently referred. We are to return to a fixed fiduciary issue system,
but with a difference.
Everyone is familiar with the device, adopted in pre-war days,
whereby special demands for currency were met by an actual suspension
of the Bank Charter Act. That was a clumsy and illogical proceeding
Which is now to be removed. Under Section S of the new bill it is provided that "if the bank at any time represent to the Treasury that it is
expedient that the amount of the fiduciary note issue shall be increased to
some specified amount, and above two hundred and sixty million pounds,
the Treasury may authorize the bank to issue bank notes to such an
increased amount, not exceeding the amount specified as aforesaid, and for
such period, not exceeding six months, as the Treasury think proper."
Furthermore, subject to special provisions which limit the period during
which these special powers may be givers to a maximum of two years, such
authorities may be renewed or varied from time to time. It is evident,
therefore, that from a purely legal standpoint-and we would stress the
point-the powers of the Treasury and the bank are very wide indeed, and
continue the provisions of Section 3 of the Currency and Bank Notes Act,
1914„ which are still in force, whereby the Bank of England, subject to
Treasury sanction, may issue uncovered notes in excess of any limit fixed
by law.
There will, doubtless, be those who, while alive to the necessity for
making due provision for elasticity, will be taken aback by the bold
regulations which are now proposed. We would remind them that good
banking depends far more on the honesty and the ability of those who
conduct the business than the legal framework within which the business
is carried on. Clearly, it is within the power of any Government, in the
last resort, to force an expansion of currency. In times of crisis that power
will always be used. Whether in normal times such powers as it is now
proposed to crlate will be abused must depend on the relationship which
exists between the Governmeat and the central bank. Critics will do well
to remember that the initiatory force behind currency expansion must
come from the Bank of England, not the Treasury. Knowing what we do
know of the honesty and wisdom of our monetary guides, we have no fear
that the powers now placed in their hands will be other than rightly used.
Notesissued
419,316,000 Government Department... 11,015,000
Govt. and other securities.._243,485,000
Silver
5,500,000
Gold, coin and bullion
159,316,000
419,316,000
419,318,000
Banking Department.
£
Proprietors'capital
14,553,000 Govt. and other securities... 84,908,000
Reit
3,181,000 Notes
48,298,000
Public deposits
13,492,000 Gold and silver
1,414,000
Other deposits
101,410,000
Seven-day and other bills
.3.000
132,619,000
132,619,000
Thus, while the present amount of notes held in the Banking Department
is £43,310,000, on the basis of the reform it would increase to £46,298,000,
an increase of less than £3,000,000, which would mean an increase in the
bank's ratio of less than 3%. The fiduciary circulation has thus been
fixed largely on the basis of the existing state of affairs.
Possible Expansion.
Any increase of the note reserve, temporary fluctuations apart, can only
take place either through the authorization of the increase of the fiduciary
issue or through the purchase of additional gold.
In this respect, an interesting and important change to be introduced
is the special power given to the Bank of England, acting in co-operation
with the Treasury, to extend the limits of the fiduciary circulation. Thus
the recommendation of the Cunliffe Committee has been essentially adopted,
that the provisions of Section 3 of the Currency and Bank Notes Act, 1914,
whereby the Bank of England may, with the consent of the Treasury, temporarily issue notes in excess of the'legal limit, should be continued.
MAY 26 1928.]
FINANCIAL CHRONICLE
A Banker's Criticism,
Although the text of the bill was not available until a late hour in the
city, a representative of "The Financial News" was able to obtain some
Interesting views of the new regulations. Thus, a well-known critic of
the official monetary policy, discussing the special provisions for expending the fiduciary issue, said to our representative that they amount to the
elimination of Parliament's control. "It would have been much simpler
to fix no fiduciary issue at all," he said. "There is no object in fixing the
figure of £260,000,000, if the Treasury can, at the Bank of England's
request, increase that figure at any time to any amount. It is true that a
time limit of six months has been fixed for the increase. In practice, however, that is entirely without significance, for the authorization can be
repeatedly renewed every six months."
Another critic objected to the reform from exactly the opposite point of
view. "Admittedly," he said, "the system is more elastic than the one
prevailing before the war, for, instead of having to suspend the Bank Act,
the decision of the Treasury will be henceforth sufficient. In reality, however, it is to be feared this measure will only be applied in extreme
emergency. Before asking the Treasury to authorize an increase of the
fiduciary issue, the Bank of England will use every means at its disposal
-to avoid such a step, and this will cause much inconvenience to the market."
Other bankers expressed the opinion that the reform will considerably
Increase the Treasury's influence over the Bank of England. Although the
Treasury will have no note circulation of its own, it will continue to play
a prominent part in the Money Market, not only through the issue of
Treasury bills, but also through its increased influence with the bank.
One banker expressed the view that the bill will arouse more controversy
in political and financial circles than any previous financial measure since
the war.
Gold Purchase.
Section 11 of the bill, empowering the Bank of England, under certain
conditions, to buy any amount of gold in excess of £10,000 held in this
country, is believed to be directed against any attempt on the part of any
ether bank to build up a gold reserve. The bullion brokers are not of
course disturbed by the restriction, and do not expect to find any difficulty
In satisfying the bank that the gold they may hold is required for industrial or export purposes. In fact, it is believed that the bank will not
avail itself of its right unless there is good reason to suppose that gold is
being accumulated as a reserve. A banker pointed out to our representative
that it would be a better solution to fix a certain time limit after the
arrival of the gold beyond which the bank is entitled to buy it.
One of the consequences of the new system will be that foreign central
banks will concentrate their gold deposits with the Bank of England. If
a foreign central bank or a Government wished to hold a deposit with
another bank, the Bark of England would be in a position to demand the
sale of the gold at 84s. 10d. To avoid this, the central banks and Governments will have to deposit their London reserves with our central
Institution.
The same paper, in indicating the disapproval voiced by
the Labor party, states:
3221
either at the head office or at that branch, to require in exchange for the
said bank notes for five pounds and upwards bank notes for one pound
or ten shillings.
(4) The bank shall have power, on giving not less than three months'
notice in the London, Edinburgh and Belfast Gazettes, to call in the bank
notes for one pound or ten shillings of any series on exchanging them for
bank notes of the same value of a new series.
(5) Notwithstanding anything in section eight of the Truck Act, 1831,
the payment of wages in bank notes of one pound or ten shillings shall
be valid, whether the workman does or does not consent thereto.
Amount of Bank of England note issue.
2.—(1) Subject to the provisions of this Act the bank shall issue bank
notes to the amount representing the gold coin and gold bullion for the
time being in the issue department, and shall in addition issue bank notes
to the amount of two hundred and sixty million pounds in excess of the
amount first mentioned in this section, and the issue of notes which the
bank are by or under this Act required or authorized to make in excess of
the said first mentioned amount is in this Act referred to as "the fiduciary
note issue."
(2) The Treasury may at any time on being requested by the bank,
direct that the amount of the fiduciary note issue shall for such period as
may be determined by the Treasury, after consultation with the bank, be
reduced by such amount as may be so determined.
Securities for note issue to be held in issue department.
3.—(1) In addition to the gold coin and bullion for the time being in
the issue department, the bank shall from time to time appropriate to and
hold in the issue department securities of an amount in value sufficient
to cover the fiduciary note issue for the time being.
(2) The securities to be held as aforesaid may include silver coin to an
amount not exceeding five and one-half million pounds.
(3) The bank Shall from time to time give to the Treasury such information as the Treasury may. require with respect to the securities held in
the issue department, but shall not be required to include any of the
said securities in the account to be taken pursuant to section five of the
Bank of England Act, 1819.
Transfer of Currency Notes Issue to Bank of England.
4.—(1) As from the appointed day all currency notes issued under
the Currency and Bank Notes Act, 1914, certified by the Treasury to be
outstanding on that date (including currency notes covered by certificates
issues to any persons under section two of the Currency and Bank Notes
(Amendment) Act, 1914, but not including currency notes called in but
not cancelled) shall, for the purpose of the enactments relating to bank
notes and the issue thereof (including this Act) be deemed to be bank
notes, and the bank shall be liable in respect thereof accordingly.
(2) The currency notes to which subsection (1) of this ssection applies
(3) At any time after the appointed day the bank shall have power,
on giving not less than three months' notice in the London, Edinburgh and
Belfast Gazettes, to call in the transferred currency notes on exchanging
them for bank notes of the same value.
(4) Any currency notes called in but not cancelled before the appointed
day may be exchanged for bank notes of the same value.
Members of the Parliamentary Labor party are finding much which they
take exception to in the Currency and Bank Notes Bill, the draft of which Transfer to Bank of Certain Part of Assets of Currency Note Redemption
Account.
was issued from the Vote Office of the House of Commons yesterday, and
Is now on Order Papers for Second Reading. The opposition, I am told,
5.—(1) On the appointed day, in consideration of the bank undertaking
will be advanced almost clause by clause, but the main force of the liability in respect of the transferred currency notes, all the assets of the
Socialists' attack is to be directed against that portion of the bill which Currency Note Redemption Accomt other than Government securities shall
effects the .transfer of currency note issue from the Treasury to the Bank be transferred to the issue department, and there shall also be transferred
of England. This, according to the Labor party, will have a most adverse to the issue department out of the said assets Government securities of
effect upon the prospects of trade prosperity in the country,
such an amount in value as will together with the other assets to be
Briefly, the Labor argument on this question may be outlined as follows: transferred as aforesaid represent in the aggregate the amount of the
At the present time the currency of the nation is in the hands of the Gov- transferred currency notes.
ernment and may, therefore, be increased, almost to any extent required in
For the purpose of this subsection the value of any marketable Governorder to cope with a suddenly expanding trade situation when it occurs. ment securities shall be taken to be their market price as on the apThe transference of currency issue to the Bank of England places the pointed day, less the accrued interest, if any, included in that price.
regulation of the total amount of currency in the country in the hands
(2) Any bank notes transferred to the Bank under this section shall
of a private institution, who, not having the facilities of guaranteeing be cancelled.
Itself by means of taxation, would hesitate to issue to the same extent
(3) Such of the said Government securities as are not transferred to
as the Government would.
the Bank under the foregoing provisions of this section shall be realized
Labor members, therefore, go as far as declaring that, with the issue of and the amount realized shall be paid into the Exchequer at such time
currency in the hands of the Bank of England, a genuine trade revival in and in such manner as the Treasury direct.
the country will become an impossibility.
Profits of Note Issue to Be Paid to Treasury.
The text of the bill as given in the "Financial News"
6.—(1) The Bank shall, at such times and in such manner as may be
agreed between the Treasury and the Bank, pay to the Treasury an
follows:
respect of each year in the issue
A bill to amend the law relating to the issue of bank notes by the Bank amount equal to the profits arising in
of any bank notes written off under
of England and by banks in Scotland and Northern Ireland, and to provide department, including the amount
1892, as amended by this Act, but less the
for the transfer to the Bank of England of the currency notes issue and of section six of the Bank Act,
so written off which have been presented for
notes
amount
of
any
bank
assets
appropriated
for
the
the
redemption thereof, and to make certain
year and the amount of any currency notes called
provisions with respect to gold reserves and otherwise in connection with Payment during the
innt
Be beuat
. not cancelled before the appointed day which have been so prethe matters aforesaid and to prevent the defacement of bank notes.
Be it enacted by the King's most Excellent Majesty, by and with the
(2) For the purposes of this section, the amount of the profits arising in
advice and consent of the Lords Spiritual and Temporal, and Commons, in
any year in the issue department shall, subject as aforesaid, be ascerthis present Parliament assembled, and by the authority of the ssame, as
tamed in such manner as may be agreed between the Bank and Treasury.
follows:
(3) For the purposes of the Income Tax Acts, any income of, or atAmendment with respect to !powers of Bank of England to issue bank notes. tributable to, the issue department shall be deemed to be income of the
Exchequer, and any expenses of, or attributable to, the issue department
1. (1) Notwithstanding anything in any Act—
(a) the bank may issue bank notes for one pound and for ten shillings: shall be deemed not to be expenses of the Bank.
(4) The Bank shall cease to be liable to make any payment in con(b) any such bank notes may be issued at any place out of London without being made payable at that place, and wherever issued shall be payable sideration of their exemption from stamp duty on bank notes.
7.—Section six of the Bank Act, 1892 (which authorizes the writing
only at the head office of the bank:
(c) any such bank notes may be put into circulation in Scotland and off of bank notes Which are not presented for payment within forty
Northern Ireland, and shall be current and legal tender in Scotland and years of the date of issue), shall have effect as if, in the case of notes
for one pound or ten shillings, twenty years were substituted for forty
Northern Ireland as in England.
(2) Section six of the Bank of England Act, 1833 (which provides that years, and as if, in the case of any such notes being transferred curshall
be
legal
bank notes
tender), shall have effect as if for the words rency notes, they had been issued on the appointed day and, in the case
"shall be a legal tender to the amount expressed in such note or notes of any such notes not being transferred currency notes, they had been
and shall be taken to be valid as a tender to such amount for all sums issued on the last day on which notes of the particular series of which
above five pounds on all occasions on which any tender of money may be they formed part were issued by the Bank.
legally made" there were substituted the words "shall be legal tender for
Power to Increase Amount of Fiduciary Note Issue.
the payment of any amount."
8.—(1) If the Bank at any time represent to the Treasury that it
following
provisions
shall
The
have
(3)
effect so long as subsection (1) is expedient that the amount of the fiduciary note issue shall be increased
of section one of the Gold Standard Act, 1925, remains in force:
to some specified amount above two hundred and sixty million pounds,
(a) Notwithstanding anything in the proviso to section six of the Bank the Treasury may authorize the Bank to issue bank notes to such an inof England Act, 1833, bank notes for one pound or ten shillings shall be creased amount, not exceeding the amount specified as aforesaid, and
deemed a legal tender of payment by the bank or any branch of the bank, for such period, not exceeding six months, as the Treasury think proper.
Including payment of bank notes:
(2) Any authority so given may be renewed or varied from time to
(b) The holders of bank notes for five pounds and upwards shall be time on the like representation and in like manner:
entitled, on a demand made at any time during office hours at the head
Provided that, notwithstanding the foregoing provision no such auoffice of the bank or, in the case of notes payable at a branch of the bank, thority shall be renewed so as to remain in force (whether with or with-
3222
FINANCIAL CHRONICLE
out variation) after the expiration of a period of two years from the date
on which it was originally given, unless Parliament otherwise determines.
(3) Any minute of the Treasury authorizing an increase of the fiduciary
note issue under this section shall be laid forthwith before both Houses
of Parliament.
Amendment as to Issue of Notes by Banks in Scotland and Northern Ireland.
9.--For the. purpose of any enactment which in the case of a bank in
Scotland or Northern Ireland limits by reference to the amount of gold
and silver coin held by any such bank the amount of the notes which that
bank may have in circulation, bank notes held by that bank or by the
Bank on account of that bank, shall be treated as being gold coin held by
that bank.
10.—The form prescribed by Schedule A to the Bank Charter Act,
1844, for the account to be issued weekly by the Bank under Section 6
of that Act may be modified to such an extent as the Treasury, with the
concurrence of the Bank consider necessary, having regard to the provisions
of this Act.
Power of Bank of England to Require Persons to Make Returns of and
to Sell Gold.
11.—(1) With a view to the concentration of the gold reserves and
to the securing of economy in the use of gold, the following provisions
of this section shall have effect so long as subsection (1) of Section 1
of the Gold Standard Act, 1925, remains in force.
(2) Any person owning any gold coin or bullion to an amount exceeding ten thousand pounds in value shall, on being required so to
do by notice in writing from the Bank, forthwith furnish to the Bank in
writing particulars of the gold coin and bullion owned by that person,
and shall, if so required by the Bank, sell to the Bank the whole or
any part of the said coin or bullion, other than any part thereof which
Is bona fide held for immediate export or which is bona fide required
for industrial purposes, on payment therefor by the Bank, in the case of
coin, of the nominal value thereof, and in the case of bullion, at the rate
fixed in Section 4 of the Bank Charter Act, 1844.
Penalty for Defacing Bank Notes.
12.—If any person prints, or stamps, or by any like means impresses, on
any bank note any word, letters or figures, he shall, in respect of each
offense, be liable on summary conviction to a penalty not exceeding one
pound.
Short Title Interpretation and Repeal.
13.—(1) This Act may be cited as the Currency and Bank Notes Act,
1928.
(2) This Act shall come into operation on the appointed day, and the
appointed day shall be such day as His Majesty may by Order in Council appoint, and different days may be appointed for different purposes and
for different provisions of this Act.
(3) In this Act, unless the context otherwise requires,—
The expression "the Bank" means the Bank of England:
The expresion "issue department" means the issue department of the
Bank:
The expression "bank note" means a note of the Bank:
The expression "coin" means coin which is current and legal tender
In the United Kingdom:
The expression "bullion" includes any coin which is not current and
legal tender in the United Kingdom.
(4) The enactments set out in the schedule to this Act are hereby
repealed to the extent specified in the third column of that schedule.
SCHEDULE.
Enactments Repealed.
Session and
Chapter.
Short Title.
7 is 8 Vict. The Bank Charter Act,
c. 32.
1844.
[VoL. 126.
Be it therefore enacted by the King's most Excellent Majesty, by
and with the advice and consent of the Lords Spiritual and Temporal,
and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Limit on Fiduciary Note Issues in Northern Ireland.
1.—(1) The amount of the fiduciary note issues of the several
banks mentioned in the first column of the Schedule to this Act shall
be that specified in the second column of that Schedule; and the Bankers
(Ireland) Act, 1845, shall, in its application to Northern Ireland, have
effect as if those amounts had been the amounts certified in respect of
the several banks under section eight of that Act.
(2) The bank notes which any such bank is by the Bankers (Ireland)
Act, 1845, as amended by this Act, authorized to issue shall be in addition to any hank notes which the bank is by any law for the time being
in force in the Irish Free State authorized to issue within the Irish Free
State.
Restriction on Putting in Circulation Notes Issued Out of the United
Kingdom.
2.—It shall not be lawful for a banker in Northern Ireland to pay out
or put in circulation any bank or other notes forming part of the currency
of any country outside the United Kingdom, except in such circumstances
and to such extent as the Treasury may by any general or special license authorize; and if any banker pays out or puts into circulation any
notes in contravention' of this section, he shall for each such note be liable
to forfeit the sum of five pounds.
Issues of Notes Against Coins.
3.—For the purposes of the provisions of the Bankers (Ireland)
Act, 1845, which relate to the issue of bank notes against gold and
silver coin, there shall not be included any gold or silver coin held by
a banker at any office outside the United Kingdom.
Short Title, Construction and Commencement.
4.—(1) This Act may be cited as the Bankers (Northern Ireland)
Act, 1928, and shall be construed as one with the Bankers (Ireland) Act,
1845, and that Act and this Act may be cited together as the
Bankers
(Northern Ireland) Acts, 1845 and 1928.
(2) This Act shall come into operation on such date as the Treasury
may by notice in the Belfast Gazette certify to be the date fixed under
the said Currency Act, 1927, to be the appointed day for the
purposes of section sixty of that Act.
SCHEDULE.
Bank—
The Bank of Ireland
The Provincial Bank of Ireland. Ltd
The National Bank, Ltd
The Belfast Banking Co., Ltd
The Ulster Bank, Ltd
The Northern Banking Co., Ltd
Total
Amount of
Fiduciary Issue.
£410,000
220,000
120,000
350,000
290.000
244,000
£1,634,000
An item regarding the amalgamation of the note issues
appeared in these columns May 12, page 2899.
"Fiduciary Limit" in British Currency
Fusion
Criticized.
Stating that the British Government's currency fusion
plan is going smoothly through the House of Commons, a
cablegram, May 18,from London to the New York "Times"
added:
Extent of Repeal.
Sections 2, 3, 5 and 9, in Section 11, the
The only real criticism of the scheme by financial experts is the
words from "save and except that" to
fixing
the end of the section: Sections 13 to 20, of the fiduciary limit at £260,000,000.
It is argued in various quarters
and Section 22, and, so far as relates to that,
with
so
relatively
low
a
fidudary
maximum,
England. Sections 10 and 12.
the heavy external gold
drain which will come when trade demands for currency are
24.4 25 Viet. Bank of England Act. Section 4, so far as unrepealed.
increasing
1881.
C. 3.
might bring about such conditions as would force the Bank
of England to
A&5 Geo.5. The Currency and Bank The whole Act, except subsection (5) of adopt protective
measures calculated to contract credit and injure home
c. 14.
Notes Act, 1914.
Section 1 and Section 5.
.
csri
indm
usotsrtie
dr 5 Geo.5. The Currency and Bank The whole Act.
Notes (Amendment)
0. 72.
tics would be satisfied with a fiduciary maxinium of
£275,000.000.
Act, 1914.
but Keynes advocates .C300,000,000, which he thinks
would obviate im5&6 Geo.5. The Finance Act, 1915. Section 27.
mobilization
of so large a proportion of the Dank of England's
15&16 Geo.5. The Gold Standard Act, Paragraph (8) orsubsection (1) of Section 1.
gold stock
and would give the Bank a safe margin to work upon. The
c. 29.
1925.
Government
made it clear in the debate that the clause in the bill for
increase in the
BANKERS (NORTHERN IRELAND) BILL.
fiduciary total provides for such action on application
of the Bank of
England to the Treasury. The purpose of this would be to increase the
The full text of the Bankers (Northern Ireland) Bill is as follows:
Issue of notes before a crisis arose, and to relieve undue
A Bill to reduce and re-apportion the aggregate amount of the fiduciary
stringency arising
from sudden withdrawal of a largo amount of gold.
bank note issues of banks in Northern Ireland, and to restrict the circuThe issue of bank notes of small denominations is necessary, as they
lation in Northern Ireland of notes issued outside the United Kingdom, take the
place of currency notes issued by the Treasury, which have always
and otherwise to amend the Bankers (Ireland) Act, 1845, in its appli- Included
small denominations. No date has yet been fixed for the note
cation to Northern Ireland.
fusion to come legally into force.
Whereas by virtue of certificates issued under section eight of the
Bankers (Ireland) Act, 1845, the aggregate amount of bank notes which
banks in Ireland may issue in excess of the amount of gold and silver Visit Abroad of
Governor Strong of New York Federal
coin and other currency held by those banks was fixed at six millions,
Reserve Bank Said to Involve Credits for Stathree hundred and fifty-four thousand, four hundred and ninety-four pounds,
bilization.
and such excess issues are hereinafter referred to as "fiduciary note
issues":
According
to the New York "Times" of May 22, imAnd whereas, by an Act of the Parliament of the Irish Free State,
called "The Currency Act, 1927," provision is made for the issue within portant subjects concerning international credit are being
the Irish Free State of currency and bank notes, and the issue in the discussed at informal conferences between Governor Benjamin
Irish Free State of bank notes other than those authorized by that Act Strong of the
Federal Reserve Bank of New York and
Is, from a date (in that Act referred to as "the appointed day"), proleading British bankers, and the discussions soon will be
hibited.
And whereas, in consequence of the passing of the said Currency Act, extended to include the heads of the French and German
1927, it is necessary that the aggregate amouut of the fiduciary note issues banking systems. The
"Times," continuing, said:
In Northern Ireland should be reduced:
Governor Strong is in the south of France, primarily for his health, but
And whereas the banks specified in the Schedule to this Act are the
Montagu Norman, Governor of the Bank of England, visited with him over
banks carrying on banking business in Northern Ireland which are enthe last week-end and they will hold further conversations.
titled to fiduciary note issues, and those banks have agreed with one
The conferences are entirely informal, but they are expected to lead to
another and with the Treasury that the aggregate fiduciary note issues important
unofficial understandings on international financial relations.
In Northern Ireland should be reduced to one million, six hundred and One of the
most important subjects to be taken up. It is understood here,
thirty-four thousand pounds, and that that amount should be apportioned Is the effect of the
advance last week from 4 to 434% in the rediscount rate
among the several banks in manner shown in the Schedule to this of the Federal
Reserve Bank of New York. Sterling exchange has held
Act;
firmly in the face of the higher money rates in New York. and it is believed
And whereas it is expedient to give effect to the said agreement, and to that this would have
been unlikely without some sort of International Co..
restrict the putting into circulation in Northern Ireland of bank and other operation.
The
notes forming part of the currency of any country outside the United
heavy movement of gold from the United States to Europe, and
Kingdom, and otherwise to amend the Bankers (Ireland) Act, 1846, in particularly to France, also
is likely to be gone over at the conferences, as
its application to Northern lzulaud:
well as the plans of France for oMcial stabilization. Bankers here are
MAY 26 1928.]
FINANCIAL CHRONICLE
agreed that France could readily obtain a large Government loan or a
Federal Reserve credit in connection with stabilization, but they believe
which
that such assistance will not be desired in view of the large balances
France holds throughout the world and the tremendous quantities of gold
she has drawn from the United States.
It was emphasized here, however, that Governor Strong has been quite
ill and that the main purpose of bis visit abroad was a quest of health
The heads of most of the important European banks visited him in New
York last Summer.
3223
barde at Milan, for the International Power Securities Corp.
Mt. Ceretti states:
Small savings are collected in Italy chiefly by two groups of institutions:
the Post Office Savings Banks with deposits amounting to some 550 millions dollars, and the Ordinary Savings Banks with deposits of 750 million
dollars. Until a short time ago these latter institutions, distributed
throughout the Peninsular, numbered no less than two hundred.
But in December 1927 the Fascist Government wisely enacted a law
directing savings banks with deposits of less than five million lire to amalgachief savings bank in their respective provinces,the amalgaThe Washington correspondent of the "Journal of Com- mate with the
mation of savings banks with more than five million and less than ten
merce" said on May 21 that in well-informed circles it was million lire being left at the discretion of the Minister of National Economy.
federations,
stated that the chief topic that is being taken up by Governor Furthermore this law grouped all savings banks into regional
which coordinate the activities of the federated banks, and build up. in
Strong on his present visit to Paris is the arrangement of addition
to the reserves possessed by each,a common reserve fund available
stabilization credits for France, Rumania and Jugoslavia. for any of the federated banks.
The aim of this legislation was to create six or eight organizations with
• From the same source we quote the following:
of the "Lombard Provinces Saving Bank" which
A second vital question which Mr. Strong will take up, it is stated in activities similar to those
Lombard Provinces and boasts 1.200,000
these same quarters. is the amount of gold which France is to draw from collects the savings of eleven
and reserve funds amounting to some 200 million
this country. A total of $180,000,000. largely earmarked last year for depositors with deposits
French account, has already been exported to Paris, but the French are in dollars.
It should be noted, however, that even before their compulsory grouping
a position, through the large foreign exchange holdings of the Bank of
a very keen sense of solidarFrance, to take out more gold. It is believed that large additional pur- Into federations Italian savings banks possessed
ity. In 1911 the Italian Savings Banks formed a National Association
chases for French account were made since May 1.
which. in 1919, established and financed a Central Credit Bank for Savings
French Gold Position.
Banks, performing the valuable function of a Clearing House for cheques
The large gold imports of France have put her in a position, not only and transfers.
to carry out her own stabilization, but also to assist in that of the Balkan
In 1924 the First International Thrift Congress was held under the
countries. Her gold supply is now large enough to withstand any with- auspices of the Lombard Provinces Savings Banks in Milan and took the
gold
the
of
drawals that may be occasioned through the establishment
important decision of founding an International Thrift Bank. No fewer
exchange standard in those countries.
than 4,650 Savings banks in 27 countries, including the United States, now
Furthermore, it is stated in these quarters that the way is now clear for belong to this organization. The Bank's function is that of a thrift enthe establishment of a new monetary union to include France. Rumania and couragement bureau and a liaison and intelligence center for savings banks
Jugoslavia. The plan is stated to comprise first the stabilization of the throughout the world. It took part in the Philadelphia Convention in
franc at the present level. Following this step, the Roumanian leu will be 1926; and is now promoting the Second International Thrift Congress to be
stabilized legally at the present quotation of .62. After several months a held in London next year which will bring together delegates from savings
conversion of the leu into another currency unit will be brought about, at banks in all parts of the world.
rate which will make the new unit equivalent to the French franc. Following this step, Jugoslavia will take a similar course.
English Approve.
Information is stated to have reached here that the monetary union plan
has been approved by the Bank of England. The stabilization of Rumania
OD Paris is a natural step in view of the fact that the Bank of France has
arranged an $80,000,000 loan to Rumania. On the other hand, the Jugoslav financing is being handled in London.
However, the Bank of England is said here to have little interest in
taking a direct hand in Jugoslav stabilization on London, as it would constitute another possible source of demand on the gold stock here, and
besides trade relations between Great Britain and Jugoslavia are not very
great. Another obstacle to a Jugoslav accord with France on monetary
problems was removed when the Serb-Croat-Sloven Ambassador in Paris
signed a compromise agreement on the pre-war debts of Serbia to French
bondholders.
Governor Strong's departure for Europe was noted in
our issue of May 19, page 3062.
Spain Takes Over Paper Monopoly—Press Shows
Anxiety as State Plans to Operate Newsprint
Manufactories.
A State monopoly on paper has been established in Spain
according to copyright advices May 18 to the New York
"Evening Post" which adds:
the fabricaThe decree institutes a commission to improve the plants for
tion of paper generally and of newsprint particularly.
at the
increased
The duties on foreign newsprint and other paper were
paper manufactories
time of the revision of the customs tariffs. The
henceforth will be governmental.
over of the
The newspapers are somewhat anxious concerning this taking
has been
paper industry by the State, which during the past four years
as is
results,
poor
with
acquiring monopolies in rapid succession, but
evidenced in the case of petroleum.
Introduced by Representative Rathbone
Declaration by Government on Foreign Loan
Policy in Interest of American Investors.
Representative Henry R.Rathbone (of Illinois) introduced
in the House on May 16 a resolution "requesting the President to direct all agencies of the Government that financial
settlements can only be secured through the ordinary channels of law and duly authorized arbitration agencies." In a
statement indicating his reasons for presenting the resolution
Mr. Rathbone says:
Resolution
Paris Bourse in Sharp Slump on Liquidation.
From its Paris correspondent the "Journal of Commerce"
reported the following on May 21:
Seeks
A sharp slump in all securities carried prices down very sharply in every
section of the Bourse. The selling was directly induced by high money rates
in the last term settlement. The jump to 9% scared the speculative element.
especially in view of the rapadity of the previous advance,leading to a topheavy speculative structure.
The Bank of France, which was in the lead in the previous up-bidding of
prices. dropped 2,000 francs during the trading session. Credit Foncier,
the mortgage bank, fell 800 francs; Credit Lyonnais, 500, and Suez Canal,
2.000. Rio Tinto for a time showed resistance, but closed 300 francs
This Resolution calls for a declaration of policy on the part of the Conlower.
request on the President of the United States.
In discussing the decline, the Agence Economique & Financere said that gress, coupled with a
the
Its purpose is to inform as fairly and fully as possible all citizens of
Important interests on the Bourse were on the bear side of the market,
may contemplate making loans or advances to foreign
and exerted severe pressure. Their action was based on the belief that, in United States, who
United
political sub-divisions or citizens, that the
the optimism following the elections, the public buying had overextended Governments or their
States, will not intervene, nor take any steps that might lead to war or
•
Itself.
to collect their
to intervention, for the purpose of enabling such creditors
debts.
it is of great imporItalian Stock Market Rises with the Rest—Advance
It is believed that the time has been reached when
should be made. During and WACO
Prudently Conducted—Money Abundant Because tance that such an open declaration
of this country and its citizens
the World War the foreign investments
unprecedented rate. With every
of Deflation in Trade.
have been piling up at a tremendous and
purposes of investment, it Is realized by all
In a message from Rome May 18 to the New York "Times" dollar that has gone abroad forarisen
added danger of foreign complications.
that there has
persons
thinking
concerned, to be
it is stated:
well for this country, nor for the individuals
not
is
It
The last two weeks on the Italian Stock Exchange have presented what left in doubt as to what our policy will be. Before we realized it we have
with
constant
picture,
increase in volume of
foreign nations, and in several
speculators call a brilliant
found that we were involved in the affairs of
trading and with prices rising, although prudently. It is noted that all Instances have finally been led to intervene by armed force.
investors would be
stocks without distinction have participated in the rise, and from this It
If this Resolution were adopted no doubt American
is assumed that at least a good part of the movement may be purely specu- rendered more cautious in the matter of foreign loans and would not atcollector.
lative.
tempt to make use of the United States Government as a
It is not yet generally believed, however, that the deflation movement in
Resolution:
the
of
text
the
is
following
There
is,
objective.
final
its
of
The
however,
reached
evidence
yet
has
Italy
increasing abundance of money which appears in the increased deposits of
Requesting the President to direct all agencies of the Government that
the commercial banks as well as the savings banks. This abundance is financial settlements can only be secured through the ordinary channels of
which
still
depression,
In
continues
economic
spite of law and duly authorized arbitration agencies.
partly ascribed to
symptoms of recovery, although with momentary signs of revival.
Resolved by the Senate and House of Representatives of the United States of
Capital invested in new joint stock companies, which reached 8 billion America in Congress assembled, That the President be, and he is hereby,
lire during the inflation period of 1925. amounted to only 2 billion last year. requested to direct the Departments of State, Treasury, and Commerce,
The inference is that, even when the effect of currency revaluation Is taken the Federal Reserve Board, and all other agencies of the Government
into account, such reduction necessarily leaves greater SUMS at the public's which are or may be concerned thereunder, to refrain henceforth, without
disposal for deposit in the banks.
specific prior authorization of the Congress from—
(1) Directly or indirectly engaging the responsibility of the Government of the United States, or otherwise on its behalf, to supervise the fulActivities
Through
Coordinated
Banking
fillment of financial arrangements between citizens of the United States
Italian
thereof, whether
Regional Federations—Survey by G. Ceretti of and sovereign foreign Governments or political subdivisions
or not recognized de jure or de facto by the United States Government, or
Thrift.
Stimulate
to
Laws
(2) In any manner whatsoever giving official recognition to any arof the United States to
Methods employed for the encouragement of thrift in rangement which may commit theinGovernment
order to compel the observance of
any form of military intervention
Italy through the recent grouping of all savings banks into alleged obligations of sovereign or subordinate authority, or of any corporegional federations are analyzed in a survey by G. Ceretti, rations or individuals, or to deal with any such arrangement except to
of _Cassa_di Nisparmio dole Provincie Lam- secure the settlement of claims of the United States or of the United States
Vice-President
3224
FINANCIAL CHRONICLE
citizens through the ordinary channels of law provided
therefor in the
respective foreign Jurisdictions, or through duly authorized
and accepted
arbitration agencies.
(3) It is hereby declared to be the policy of the United States
not to
Intervene nor to resort to armed force, nor to exert pressure,
Cash transfers
whether economic, diplomatic, or otherwise, upon any such sovereign
foreign Government or political subdivision thereof, for the purpose of enabling
citizens
of the United States who have loaned or advanced money or other
valuable Greece—Deliveriesin kind
consideration to such foreign Governments, or to the nationals thereof,
to
collect or recover such loans or advances from such Governments
veriesin kind
or from Poland—Deli
Miscellaneous payments
any political subdivisions or nationals of the same.
Settlement of balances
German Reparation Receipts and Transfers During
April.
The report for April issued May 9 by the Agent-General
for Reparations, shows receipts for the month (less discount
on advance payments for service of railway bonds and industrial debentures) of 219,987,540 gold marks; the transfer
during the month totaled 211,504,246 gold marks. The
cash balance April 30 1928 at 176,671,608 gold marks compares with 168,188,315 gold marks on March 31 1928. The
following is the statement for April:
STATEMENT OF AVAILABLE FUNDS AND TRANSFERS FOR
THE
FOURTH ANNUITY YEAR TO APRIL 30 1928.
(On cash basis, reduced to Gold Mark equivalents)
Fourth Annuity
Month of
Year—CutnuleApril
the Total to
1928.
Apr. 30 1928.
Gold Marks.
Gold Marks.
Available Funds—
Balance as at Aug.311927
185,487,192.84
Receipts in completion of the third annuity:
Transport tax
20,000,000.00
Interest on railway reparation bonds
55,000,000.00
Receipts on account of the fourth annuity:
Budgetary contribution
41,666,666.66 333.333,333.33
Transport tax
24,166,000.00 169,162,000.00
Interest and amortization on railway reparation
bonds
55,000,000.00 385.000,000.00
Interest and amortization on industrial debentures_ 100,000,000.00 150.000.000.00
Interest and exchange differences
280,927,31
1,588,877.77
For.. 126.
Fourth Annear
Month of
Year—Cumula.
April
the Total to
1928.
Apr. 30 1928.
Gold Marks.
Gold Marks.
135,182.94
511.586.24
owing for deliveries
or
services rendered by Germany prior to made
Sept. 1
1924
Cash transfers
Total transfers to powers
For Prior Charges—.
Service of the German external loan 1924
Costs of Inter-Allied Commissions
Costs of arbitral bodies
Total transfers
1.460.988.68
8.329.792.50
539,350.04
1.166,370.55
167,909.78
3,144.65
12,877.72
2,191.88
17,145.07
12,877.72
190,391.38
203,001,081.52 1052712.653.08
7.602,665.55 58,806.599.95
846,566.54 6,735.363.80
53,933.37
53,933.37
211,504,246.98 1118308,550.20
Mexican Debt Moratorium Extended Six Months.
The following advices from Mexico City May 23 appeared
in the New York "Journal of Commerce":
The newspaper Excelsior reports that the Mexican debt
moratorium has
been extended by the bankers for another six months.
This report sets
at rest rumors here that arrangements were being made
to resume payments at this time on the Mexican debt.
Great Britain in Note to U. S. Agrees to Co-operate
in Conclusion of Multilateral Treaty to Outlaw
War—Finds No Appreciable Difference Between
French and American Proposals.
Replying to the invitation of the United States that Great
Britain join with the other world powers in the negotiation
221,113,593.97 1299571,403.94
of a multilateral treaty to outlaw war, Great Britain has
Less discount on advance payments for service of
railway bonds and industrial debentures
1,126,053.79 4,591,244.86 advised the United States that "they
will gladly co-operate
Totals
219.987.540.18 1294980,159.08 In the conclusion of such a pact as is proposed and are
ready to engage with the interested governments in the negoTransfers—
In foreign currencies:
tiations necessary for the purpose." The invitation to
Service of the German external loan, 1924
7.602,665.55 58,808,599.95
Reparation Recovery Acts
35,733.514.77 231,697,331.04 Great Britain, Germany, Italy and Japan to
join France and
Deliveries under agreement
4,842.188.14 19,112,043.51
Settlement of balances owing for deliveries made or
the United States in the negotiation of a worldwide treaty
services rendered by Germany prior to Sept. 1
1924
4.508,728.90 7,511,586.93 binding the nations not to resort to war with one another
Transferred in cash
82.148,646.85 257,575.221.53 was extended on April 13 by Secretary
Kellogg after an
Costs of Inter-Allied Commissions
340,385.88 2,778.595.51
Costs of arbitral bodies
53,933.37
53,933.37 agreement on the procedure with Aristide Briand, Foreign
135.230,063.46 577,535,311.84 Minister of France.
At the time the invitation of Secretary Kellogg was anBy reichsmark payments fen
Deliveriesin kind
70.720,652.07 490,633,917.58 nounced in April Associated Press accounts
Armies of occupation
from Washing4,953,313.93 45.392,273.84
Costs of Inter-Allied Commissions
506,180.66 3,956.768.29 ton stated:
Miscellaneous objects
94,036.86
790.278.85
76,274,183.52 540,773,238.36
Total transfers
211.504,246.98 1118308,550.20
Cash balance as at Apr.30 1928
176,671,608.88
Distrib&tton of Amounts Transferred—
To the Powers—
France—Army of Occupation
3,744.383.69 35,741,053.15
Reparation Recovery Act
Deliveries of coal, coke and lignite(including trans- 7,685,512.51 34,663.960.32
port)
17.307,799.91 111,085.782.81
Other deliveries in kind
26,899.419.03 212,777.749.91
Miscellaneous PaYmentn
75,000.00
600,000.00
Cash transfers
43,064,643.22 153,927.813.68
98,776,758.36 548.796,359.87
British Empire—Army of Occupation
882.316.08 8.347,335.95
Reparation Recovery Act
28,048,002.26 197,033,370.72
Settlement of balances owing for deliveries made or
services rendered by Germany prior to Sept. 1
1924
4.508.728.90 7,509,395.05
Cash transfers
18,003,686,64 24.029,522.33
51,442.733.88 236,919,624.05
Italy—Deliveries of coal and coke(incl. transport)_ _ _ 8.710,458.90 48.874,533.98
Other deliveries in kind
825,067.61 8,810.898.54
Miscellaneous payments
998.31
6,054,265.40 21,645,766.43
Cash transfers
15,589,791.91 79.332,197.26
Belgium—Army of Occupation
Deliveries of coal and coke (incl. transport)
Other deliveriesin kind
Cash transfers
326,614.16
1,303.884.54
1,612,488.82 19,381,319.30
6,615,826.76 38.954,897.82
4.261,233.33 15,236,979.84
12,816,161.07 74,877,081.50
Serb-Croat-Slovene State—DeliveriesIn kind
Miscellaneous payments
Cash transfers
5,051,923.26 31,013,255.59
19.036,86
152,085.68
3,029,527.72 8,019,871.63
8,100,487.84 39,185,192.90
United States of America—Deliveries under agree.
4,842,188.14 19,112,043.51
ment
Cash transfers in liquidation of priority for army
costs in arrears
7,073,600.00 32.350.236.16
11,915.788.14 51,462,279.67
Rumania—Deliveries in kind
Miscellaneous payments
1,832,514.00 10,250.255.85
34.070.21
The reply of Great Britain, addressed by the British
Secretary for Foreign Affairs, Sir Austen Chamberlain, to Alanson B. Houghton, American Ambassador in London, was
2,332,737.19
513,629.88 1,836.300.15 received at the State Departme
nt, Washington, May 19.
513,629.88 4.169.037.34 Commenting on the reply the "United States Daily" of May
1.325,805.74 5,818,206.26 21 stated:
1,832,514.00 10,284,326.06
Japan—DeliveriesIn kind
Cash transfers
Portugal—Deliveriesin kind
In a note to the four governments Mr. Kellogg outlined the discussions
on the proposal between himself and 35. Briand and submitted a draft representing in a general way the form of treaty the United States is prepared
to sign. Its language is practically identical with the original treaty
proposed by M. Briand to the United States last June.
"The Government of the United States, as stated in its note of Feb. 27
1928 desires to see the institution of war abolished," Mr. Kellogg's
note
declared, "and stands ready to conclude with the French, British, German,
Italian and Japanese government a single multilateral treaty open to subsequent adherence by any and all other governments binding the
parties
thereto not to resort to war with one another.
"The government of the French Republic, while no
less eager to promote the cause of the world peace and to co-operate with other
nations in any
practical movement toward that end, has pointed out certain consideratio
ns
which in its opinion must be borne in mind by those Powers which
are
members of the League of Nations, parties to the Treaties of Locamo,
or
parties to other treaties guaranteeing neutrality.
"My Government has not conceded that such consideratio
ns necessitate
any modification of Its proposal for a multilateral
treaty, and is of the
opinion that every nation in the world can, with a proper
regard for its
own interests, as well as for the interests of the entire family
of nations,
Join in such a treaty. It believes, moreover, that the execution
by France,
Great Britain, Germany, Italy, Japan and the United States of
a treaty
solemnly renouncing war, in favor of the pacific settlement
of international
controversies, would have a tremendous moral effect and
ultimately lead
to the adherence of all the other governments of the world."
First Three Articles.
Article I reads:
"The high contracting parties solemnly declare in
the names of their
respective peoples that they condemn recourse to war
for the solution of
International controversies, and renounce it as an
instrument of national
policy in their relations with one another.
"Articles II. The high contracting parties agree
that the settlement or
solution of all disputes or conflicts of whatever
nature or of whatever
origin they may be, which may arise among them,
shall never be sought
except by Pacific means.
"Article II. The present treaty shall be ratified
by the high contracting
parties named in the preamble in accordance with
their
tional requirements, and shall take effect as between respective constituthem as soon as all
their several instruments of ratification shall have
been deposited at (world
capitals.)"
MAY 26 1928.]
FINANCIAL CHRONICLE
3225
treaty a broad statement of principle to proclaim without restriction or
qualification that war shall not be used as an instrument of policy. With
this aim his Majesty's Government are wholly in accord.
The French proposals, equally imbued with the same purpose, have
merely added an indication of certain exceptional circumstances in which
the violation of that principle by one party may oblige the others to take
action, seeming at first sight to be inconsistent with the terms of the
proposed pact. His Majesty's Government appreciate the scruples which
have prompted these suggestions by the French Government. The exact
fulfillment of treaty engagements is a matter which affects national honor;
precision as to the scope of such engagements is therefore of importance.
Each of the suggestions made by the French Government has been carefully considered from this point of view.
4. After studying the wording of Article 1 of the United States draft
His Majesty's Government does not think its terms exclude action which a
State may be forced to take in self-defense. Mr. Kellogg has made it clear
in the speech to which I have referred above that he regards the right of
self-defense as inalienable and His Majesty's Government is disposed to
think that on this question no addition to the text is necessary.
5. As regards the text of Article II no appreciable difference is found
between the American and the French proposals. His Majesty's Government are therefore, content to accept the former if, as they understand to
be the case, a dispute "among the high contracting parties," is a phrase
wide enough to cover a dispute between any two of them.
6. The French note suggests the addition of any article, providing that
violation of the treaty by one of the parties, should release the remainder
from their obligations under the treaty toward that party. His Majesty's
Government are not satisfied that if the treaty stood alone, the addition of
some such provision would not be necessary. Mr. Kellogg's speech, however, shows that he put forward for acceptance the text of the proposed
treaty upon the understanding that violation of the undertaking by one
The London correspondent of the New York "World," in a party would free the remaining parties from the obligation of observing its
of the treaty-breaking State.
copyright cablegram May 19, referring to Great Britain's terms initrespect
is agreed that this is the principle, which will apply in the case
7. If
acceptance of Secretary Kellogg's proposal, said in part:
of this particular treaty, His Majesty's Government are satisfied and will
It promises "utmost support," makes an effort to straddle the stand- not ask for the insertion of an amendment. Means can no doubt be found
points of the United States and France as outlined in the notes of these without difficulty of placing this understanding on record in some approcountries, and is not expected here to arouse enthusiasm either in Wash- priate manner so that it may have equal value with the terms of the
ington or Paris.
treaty itself.
The best hoped for is that no ill feeling will be caused in either capital,
8. The point is one of importance because of its bearing on the treaty
and that ultimately, through British mediation, the American and French engagements by which His Majesty's Government are already bound. The
views will be reconciled.
preservation of peace has been the chief concern of His Majesty's GovernAlthough only one alteration in the text of the American draft is directly ment and the prime object of all their endeavors. It is the reason why
suggested there are important interpretations and reservations made which they have given ungrudging support to the League of Nations, and why
will admittedly require lengthy negotiations.
they have undertaken the burden of guarantee embodied in the Locarno
Britain declines in effect to renounce war in any part of the world where Treaty. The sole object of all these engagements is the elimination of war
her vital interests are concerned, and hints that this is the same attitude as an instrument of national policy just as it is the purpose of the peace
the United States assumes through the Monroe Doctrine.
pact now proposed. It is because the object of both is the same that there
It isn't put quite that bluntly, but Mr. Chamberlain says there are is no real antagonism between the treaty engagements which His Majesty's
"certain regions of the world, the welfare and prosperity of which consti- Government have already accepted and the pact which is now proposed.
tute a special and vital interest for our peace and safety," and adds that
The machinery of the Covenant and of the Treaty of Locarno, however,
"their protection against attack is to the British Empire a measure of self- go somewhat further than a renunciation of war as a policy M that they
defense," and gives notice that "it must be clearly understood that His provide certain sanctions for a breach of their obligations. A clash might
Majesty's Government in Great Britain accept the new treaty upon the thus conceivably arise between existing treaties and the proposed part,
distinct understanding that it does not prejudice their freedom of action unless it is understood the obligations of the new engagement will cease
in this respect."
to operate in respect of a party which breaks its pledges aid adopts hostile
This means he is safeguarding the right of Britain to make war on
measures against one of its co-contractants.
Egypt and possibly other countries without being deemed to have violated
9. For the Government of this country, respect for the obligations
the pact.
arising out of the Covenant of the League of Nations and out of the Locarno
He Draws the Parallel.
treaties is fundamental. Our position in this regard is identical with that
His justification of this attitude is that "the Government of the United of the German Government as indicated in their note of 27th April.
States has comparable interests, any disregard of which by a foreign power
His Majesty's Government could not agree to any new treaty which would
they have declared that they would regard as an unfriendly act. His weaken or undermine these engagements on which the peat* of Europe
Majesty's Government believes, therefore, that in defining their position it rests. Indeed, public interest in this country in scrupulous fulfilment of
is expressing the intention and meaning of the United States Government." these engagements is so great that His Majesty's Government would for
The hint is also conveyed that Britain would not welcome the adherence their part prefer to see some such provision as Article IV of the French draft
of Russia and possibly Egypt and other countries to the pact. This conflicts embodied in the text of the treaty. To this we understand there will be
with the statement of General Smuts of South Africa, published to-day no objection. Mr. Kellogg has made it clear in the speech to which I have
declaring the adherence of Russia as "essential."
drawn attention that he had no intention by the terms of the new treaty
Chamberlain declares the adhesion "might even be inconvenient" of states of preventing parties to the Covenant of the League or to the Locarno
whose "governments not yet have been universally recognized and some Treaty from fulfilling their obligations.
which are scarcely in a position to insure the maintenance of good order
10. The language of Article I as to the renunciation of war as an
and security within their territories" and suggests further attention to instrument of national policy renders it desirable that I should remind your
these problems.
Excellency that there are certain regions of the world the welfare Anil
The Outlawry Proposal.
integrity of which constitute a special and vital interest for our peace
On the condition that it is understood that violation of the treaty re- and safety. His Majesty's Government has been at pains to make it clear
leases other nations from obligations toward the offender, Chamberlain in the past that interference with these regions cannot be suffered. Their
accepts Kellogg's outlawry formula, but suggests that this understanding protection against attack is to the British Empire a measure of selfbe placed on record as of "equal value with the terms of the treaty itself." defense. It must be clearly understood that His Majesty's Government in
•
•
•
Great Britain accepts the new treaty upon the distinct understanding that
Thus the British reply is not an acceptance without reservations as Labor it does not prejudice their freedom of action in this respect. The Governand Liberal opinion here has urged. The agreement to sign first and then ment of the United States has comparable interests, any disregard of which
argue about the interpretation afterward has not been forthcoming, in all by a foreign power they have declared that they would regard as an
probability due to the strong pressure from France.
unfriendly act. His Majesty's Government believes, therefore, that in
expressing the intention and meaning of the
The text of Great Britain's reply was made public at defining their position they are
United States Government.
Washington as follows:
11. As regards the measure of participation in the new treaty before it
Text of Note, dated May 19 1928, from the Secretary for Foreign Affairs would come into force, His Majesty's Government agrees that it is not
of Great Britain, Sir Austen Chamberlain, to the American Ambassador necessary to wait until all the nations of the world have signified their
in London, Alanson B. Houghton:
willingness to become parties. On the other hand, it would be emYour Excellency:
barrassing if certain States in Europe with whom the proposed partial.
1. Your note of April 13, containing the text of a draft treaty for renun- pants are already in close treaty relations were not included among the
ciation of war, together with copies of correspondence between the United parties. His Majesty's Government see no reason, however, to doubt that
States and the French Governments en the subject of this treaty, has been these States will gladly accept its terms. Universality would in any case
receiving sympathetic consideration at the hands of His Majesty's Govern- be difficult of attainment and might even be inconvenient, for there are
ment in Great Britain. A note has also been received from the French some States whose Governments have not yet been universally recognized
Government, containing certain suggestions for discussion in connection with and some which are scarcely in a position to insure the maintenance of
the proposed treaty; and the German Government was good enough to send good order and security within their territories.
one a copy of a reply which had been made by them to the proposals of
The conditions for the inclusion of such States among the parties to the
the United States Government.
new treaty is a question to which further attention may perhaps be devoted
2. The suggesticn for the conclusion of a treaty for renunciation of war with advantage. It is, however, a minor question as compared with the
as an instrument of national policy has evoked widespread interest in this attainment of the more important purpose in view.
country and His Majesty's Government will support the movement to the
12. After this examination of the terms of the proposed treaty and of
utmost of their power.
the points to which it gives rise, your Excellency will realize that His
study
careful
the
a
of
text contained in your Excel- Majesty's Government find nothing in its existing commitments which
3. After making
lency's note and of the amended text suggested in the French note, His prevents their hearty co-operation in this new movement for strengthening
Majesty's Government feel convinced that there is no serious divergence the foundations of peace. They will gladly co-operate in the conclusion of
between the effect of these two drafts. This impression is confirmed by a such a pact as is proposed and are ready to engage with the interested
study of the text of the speech by the Secretary of State of the United Governments in the negotiations which are necessary for the purpose
13. Your Excellency will observe that the detailed arguments in the
States to which your Excellency drew my attention and which he delivered
before the American Society of International Law on April 28. The aim foregoing paragraphs are expressed on behalf of His Majesty's Government
I
as
Government,
understand
it,
is
States
In
to
a
in
United
of the
Great Britain. It will, however, be appreciated that the proposed
embody
Support is Promised.
Although the British note stated that the British Government would
"support the movement to the utmost of their powers," three exceptions
to the Kellogg plan was suggested.
The British Government, according to the note, prefers the French reservation that, in case one party violates the treaty, all other signatory countries shall be automatically released from their pledges.
"Means can no doubt be found," the note suggests, "of placing this
understanding on record in some appropriate manner, so that it may have
equal value with the terms of the treaty itself."
The British also favor the inclusion of Article 4 of the French treaty
proposal. This article would exempt from the renunciation of war treaty
"the rights and obligations of the contracting parties resulting from pier
international agreement to which they are parties."
Commenting upon this suggested reservation, the Department of State
stated orally that Secretary Kellogg had never accepted the French reservation and that the attitude previously indicated by him remained unchanged.
Exceptions of Special Zones.
The third exception taken to the Kellogg plan, as outlined in the British
note, has to do with "certain regions of the world, the welfare and integrity
of world constitute a special and vital interest for our peace and safety."
"Interference with these regions," the British note states, "cannot be
suffered."
While the Department of State stated that it could not forecast its reply
to Great Britain at the present time, it said that the note indicated that
progress was being made.
It was also stated that the British Dominions would sign separately, and
that each of the Dominions and India would be sent invitations to participate in signing of the treaty.
3226
FINANCIAL CHRONICLE
treaty from its very nature is not one which concerns His Majesty's
Government in Great Britain alone, but is one in which they could not undertake to participate otherwise than jointly and simultaneously with
His
Majesty's Goverument in the Dominions and the Government of
India.
They have, therefore, been in communication with those Governments,
and I
am happy to be able to inform your Excellency that, as a result of the
communications which have passed, it has been ascertained that they are all
In cordial agreement with the general principle of the proposed treaty.
I feel confident, theiefore, that on the receipt of the invitation to participate in the conclusion of such a treaty they, no less than His Majesty's Government in Great Britain, will be prepared to accept the invitation.
In reporting, on April 20, that the French note on the
proposal for a multilateral treaty had been received on
Apr]II 20 at the Foreign Office at London by M. de Fleurau,
the French Ambassador, a London message to the New York
"Times" said:
The note, it is understood, follows closely the line of argument of
If. Briand's last answer to Secretary Kellogg. It does not include a draft
form of treaty, but consists of a number of points which can be taken
Into consideration when the United States proposal is being discussed by
the principal powers.
France bases its reservations mainly on its obligations under the Covenant
of the League of Nations and is hoping for the support of Great Britain
and other powers. But the British position, it is learned, is different.
In British official circles it is considered that the spirit of the American
draft treaty and that of the League Covenant are one and the same, and
that the two compacts can be reconciled without great difficult.
It is considered here that France's difficulties arise from her specific
oommitments in Europe in agreements with Poland and the Little Entente,
and that she will have to choose between these and the multilateral treaty.
The .note addressed to the French Government in the
matter by Secretary Kellogg was given in our issue of
March 3, page 1221.
/
Secretary Kellogg's Invitation to British Dominions to
Participate in Treaty to Outlaw War.
In accordance with the suggestion contained in the communication from Great Britain to the United States (given
elsewhere in our issue to-day) Secretary of State Kellogg
on May 21 extended invitations to the British Dominions
and to India to participate in the conclusion of a multilateral treaty to outlaw war. The invitations were addressed
directly to the Irish Free State and Canada through their
legations, and to South Africa, Canada, New Zealand,
Australia, Newfoundland and India through the British
Foreign Office. The State Department's announcement
said:
/
In the note which he addressed to the American Ambassador at London
on May 19 1928, Sir Austen Chamberlain, the Secretary for Foreign Affairs
for Great Britain, informed this Government that His Majesty's Government in Great Britain had been in communication with His Majesty's
Governments in the Dominions and with the Government of India. and
had ascertained that they were all in cordial agreement with the general
principle of the multilateral treaty for the renunciation of war which the
Government of the United States proposed on Apr. 13 1928.
Sir Austen added that he felt confident, therefore, that His Majesty's
Governments in the Dominions and the Government of India were prepared
to accept an invitation to participate in the conclusion of such a treaty as
that proposed by the Government of the United States.
The Government of the United States has received this information
with the keenest satisfaction. Telegraphic instructions have been sent to
the American Ministers at Ottawa and Dublin and to the American Ambassador at London to deliver tomorrow, in behalf of the Government of
the United States, notes inviting the Dominion Governments and the
Government of India to become original parties to the multilateral treaty
for the renunciation of war which is now under consideration.
The Government of the United States has proposed simultaneous publication of the texts of the invitations on Friday morning. May 25 1928.
[voL. 126.
Implications and whose tendency, as far as the empire is concerned.
is
distinctly centrifugal.
Sir Austen Chamberlain stated in the House of Commons today that
the
conclusion of a general treaty for the outlawry of war would not
involve
abrogation of either the Anglo-American Conciliation Treaty of 1914, nor
the new arbitration treaty being negotiated, nor other conciliation treaties
now under discussion between the United States and other foreign power.
League of Nations to Use Simultaneous Translations
by Telephone—Delegates to Hear Speeches in Own
Language.
When the International Labor Conference meets on May 30
the 500 or 600 delegates, press representatives and visitors
will be equipped with telephones over which they will hear
the speeches in their own languages regardless of what
language the orator is using. The translations will be made
simultaneously with the delivery of the speech. A statement issued in the matter says:
Until this method was invented, the practice was for a speech to
be
made in either French or English. Interpreters took notes and
later
translated the speech into the various languages spoken by those in the
audience.
That method to some extent impaired the effectiveness of the League
of Nation's meetings, due to the difficulty of maintaining interest in the
proceedings during the long periods during which the translations were
being made.
It also wasted a great deal of time. Last year several Prime Ministers,
Foreign Ministers and many other important men had to leave Geneva
before the sessions were over, due largely to the time consumed in making
translations.
The inefficiency of the method was apparent to every one, but it
remained for ass American business man, Edward A. Filene, the Boston
merchant, to suggest a more efficient way. The solution he suggested
was simple and obvious. It was that the translations be made into all
the languages, sentence by sentence, simultaneously with the delivery of
the speech and transmitted to the listeners by telephone. He submitted his
plans to Mr. Thomas A. Edison and General John J. Carty and was helped
by them.
Since this was an entirely new use of the telephone many technical and
practical problems had to be solved. A laboratory was set up in one of
the meeting rooms of the International Labor Office at Geneva. The
technical work of development was done by Captain A. Gordon-Finlay
and
financed by Mr. Filene.
Each desk in the auditorium is equipped with ear-phones of the "stethophone" type and with a dial switch on which several languages are marked,
so that each of the hundreds of listeners can select the interpretation
into
has own language.
The interpreters—one for each language—are seated close to the speaker
where they can see and hear him. Each interpreter is equipped with a
microphone the unhooking of which brings all parts of the system
into
operation automatically.
He murmurs his translation into the microphone in a voice so low
that it does not disturb the speaker or the other interpreters. The voices
of the interpreters are amplified and transmitted to listeners at their
desks over a system of telephone wires.
A highly successful trial of the new method was made with about 150
sets at the International Labor Conference last year. It was so effective
in reducing confusion and wasted time that it was decided to make a
complete installation for this year's Labor Conference. If it is as
successful as last year's trials seem to assure, the new system will be
used in
the big meetings of the League of Nations which will thereby be
made
much more effective.
Poland's Attitude Toward Secretary Kellogg's Plan to
Outlaw War—Poland's Foreign Relation Policies.
Jan Ciechanowski, Minister of Poland to the United
States, received by cable from Warsaw on May 20 a summary
of Foreign Minister Zalski's pronouncement of Poland's
attitude toward the plan of Secretary of State Kellogg to
Incident to the action of Secretary Kellogg the New York outlaw
war. The Foreign Minister's proposal, presented
."Times" in a wireless message from London, May 21, made to
the Committee of Foreign Relations to the Polish Paralithe following observations:
ment, also sets forth the whole of Poland's policy in her
The news tonight that the United States is sending separate invitations
to the British Dominions to participate in the multilateral peace treaty relations with all foreign nations. Minister Zaleski expressed
marks a new stage in the development of the British Empire whose signifi- the opinion that the Polish viewpoint agrees with Secretary
cance is likely to be obscured by the wider interest of the peace treaty itself. Kellogg's viewpoint,
but he made the reservation that Poland
The invitations, which will be presented directly to Canada and the
Irish Free State, since they have Ministers at Washington, and through would have to make her acceptance conditional by clearly
the British Foreign Office to the other Dominions, since they are not thus stating that all arbitration and conciliation must
proceed
represented, means that the independent status of the Dominions—recogupon the basis of existing treaties. Poland attached the
nized within the empire at the last Imperial Conference—now has been
recognized outside it. It is the United States—on Canada's initiative. it is greatest importance to regional agreements, considering
believed here—which has set the precedent.
them most efficacious as guarantees of safety. Minister
The United States has not always appeared so ready to admit Dominion Zaleski'a
proposals also state in substance:
autonomy. The separate voting power for the British Dominions in the
League of Nations—which was the logical consequence of their assumption
of nationhood—was one of the professed reasons why the American Senate
refused to ratify adhesion to the League, which the American President
had originated. Some years later. when Canada sought to conclude a
halibut fisheries treaty with Washington entirely on her own responsibility,
Washington declined to accept the signature of the Canadian Ministers
until it was made clear by the mother country that they were acting with
her authority.
The position changed, however, when the last Imperial Conference
decided that the dominions were separate nations within the empire. under
a common King, and when Canada sent Mr. Massey to Washington as her
Minister. It is recognized in British official circles that Canada has special
relations with the United States, and no surprise is expressed at Premier
Mackenzie King's announcement that he is waiting for a separate invitation
to sign the peace treaty.
, It is understood that Canada also expects to be separately approached
for the renewal of the expiring Anglo-American Bryce-Root treaty, and it
is presumed here the United States will be willing to take such action. It
is not thought Canada will seek to obtain any special amendments of either
treaty, but it Is recognized a precedent will be set which will have wide
All roads of l'olands foreign policies load to one supreme goal, namely
the maintenance of peace based upon the loyal cooperation of Nations.
The Foreign Minister emphasized the importance of this cooperation
within the League of Nations, stressing Poland's share in the labors
of the
League. Poland worked at Genova not only in defense of her own
interest,
but also for the solution of the general problems touching upon the entire
international community. In this spirit Poland submitted to the Eighth
Assembly of the League a declaration condemning aggressive war, and
Poland's desires in connection with the American proposals arc as follows:
First, the Kellogg must not disagree with anything in the League of
Nations Covenant; second, it must not render impossible defense in case of
agression; third, the attached country must be freed from the pact obligations.
The Polish Government believes that the League's Preparatory Commission on Disarmament should not, by discussing Utopian project. like the
Soviet proposals, deviate from the less brilliant yet more real work which
has already been commenced. Zaleski attached special importace to the
League's economic actions and believes that the International Economic
Conference achieved a great step forward by fixing the common principles
of international economics. The practical problems set up by that con-
MAY 26 1928.]
FINANCIAL,CHRONICLE
3227
ference are now being studied by the economic commission of which Poland provide additional working capital to handle increased
Is a member and which, while searching for a solution of the problem of business and for other corporate purposes.
The German
systematizing commerciall treaties. Is working also toward unification of
General Electric Co., or "AEG," as it is known the world
custom tariffs and terms. Poland agrees with the gradual abolition of imover, originally was incorporated in 1883 as the German
port and export regulations.
The basis of Poland's good mutual relations with individual nations is the Edison Co. to exploit the Thomas A. Edison patents for
Polish alliance with France which forms a link in the chain of understandThe change to its present name was
ings aimed at the maintence of peace. The development of normal rela- incandescent lamps.
tions between Germany and France does not inspire fear in Poland. The made four years later. For many years the corporation
latter believes that after the healing of the scars of war the return to normal has enjoyed a co-operative relationship with the General
International relations must follow. Poland feels sure that France will
follow this path with caution, safeguarding together with Poland, that in- Electric Co. in the United States under a contract which
violability of treaties upon which peace rests.
provides for the exchange and mutual use of patents, techThe second ally of Poland is Rumania, and Poland wishes to strengthen
nical knowledge and experience, a relationship which has
that alliance in all respects.
The Minister stressed the great importance which Poland attaches to been a source of strength to both companies. The corGreat Britain's participation in European affairs. The betterment of poration manufactures all forms of electrical apparatus and
Poland's economic situation contributed very greatly to increasing the
sales have increased from about
cooperation with Great Britain. The necessity of stimulating the steadily during recent years gross
growing relations with that country and the entire British Emipre is illus- $54,000,000 in 1924 to over $100,000,000 in the last fiscal
trated by Poland's development of her consular services and her efforts to year, with prospects good for a further increase during
arrive at understandings with individual dominions like Canada and South
the current period.
Africa.
Poland's relations with the 'United States became still more cordial durThe debentures will be the direct obligation of the coming the year as shown by several new agreements and by the forwarding
pany
under a trust agreement which provides no mortgage
of the Kellogg plan to Poland. The latter is particularly gratifying because
it agrees with the general trend of Poland's policies and demonstrates the may be executed which does not provide for the security
American interest in the stabilization of European peace.
of these debentures either in priority to, or at the option
The cordial reception of Zaleski in Italy proves that the traditional
or ratably with the bonds, notes
unity uniting both nations has not decreased. The fantastic rumors in of the company, equally
the foreign press regarding Zaleski's visit to Rome are entirely baseless. or other obligations to be secured by such mortgage. The
The Minister convinced himself while in Rome that Poland may depend company's balance sheet as of Sept. 30 last showed net
upon Italy's cooperation in her efforts to maintain international peace.
except funded
The world's attention has been called to the abnormal relations with tangible assets, after deducting all liabilities
Lithuania. The liquidation of the unilateral declaration of war proclaimed debt, of more than $73,750,000, against total funded debt
by Lithuania is an important step forward. Much remains to be done,
outstanding of $21,352,232. Plant machinery, carried
however. Poland's proposals to Lithuania of non-aggression and arbitra- then
value
tion still remain in suspension. These proposals agree with the resolutions at less than $5,500,000, has an estimated replacement
of the Council of the League of Nations which have been rejected by Lithu- of consideraly more than $50,000,000. The company's
ania, notwithstanding their character. The work initiated at Koenigsberg
models, tools, furniture and fixtures are carried
will succeed in spite of greet difficulties if only Lithuania shows good faith. patents,
quotations
However, the Minister emphasized the fact that Poland will not permit on the balance sheet at less than $1. At present
during the negotiations any discussion of the territorial status which was the market value of the company's share capital is equal
finally settled by the decision of the Conference of Ambassadors, ad this
to nearly $70,000,000. The company regularly has increased
upon Lithuania's own demand.
In regard to Germany,Poland is continuing the efforts to develop mutual dividend payments in recent years from 5% in 1924 to a
co-operation, the sincerity of which was proved by her attitude at Geneva current rate of 8%. For the four years ended Sept. 30
and in discussing with Germany all existing difficulties such as the questions
after deducting all interest
of the frontier and emigration, and various legal questions. Poland has last net earnings of the company
steadfastly tried to conclude a commercial understanding with Germany. and tax charges except income taxes, but before deducting
However, conversations on the most essential points of the commercial
depreciation, averaged $3,966,344 a year, and net earnings
treaty, namely, on economic questions, meet with great difficulties on the
for dividends after all oharges averaged $2,225,917
available
commercial
part of Germany. In spite of Poland's wish to conclude the
agreement even if only in provisional form, it must be stated that the a year. Further data in connection with the offering are
demands from certain influential German circles do not warrant excessive
our "Investment News Department" on a suboptimism for the near future. The Minister states that Poland's recent given in
valorization of customs duties and her declarations on the subject of fron- sequent page.
tiers do not change Poland's formerly accepted obligations.
Relations with the Soviet Government may be called normal, and the Oversubscription of $6,000,000 Unterelbe Power &
conversations regarding the pact of non-aggression contributed largely to
Light Co. Bonds.
this condition. These conversations are not concluded as yet because of a
difference in views concerning the League of Nations and arbitration.
and International Acceptance Bank,
Co.
&
Becker
A. G.
However, an atmosphere of absolute peace between both countries was
6.55%
created. Both countries have achieved positive results in their economic Inc. offered May 23 at 93 and interest to yield over
relations, despite the difficulties reeultling from the difference in their a new issue of $5,000,000 Unterelbe Power & Light Co.
social and economic structures. The mutual turnover of trade steady
sinking fund mortgage gold bonds, series A,
increases, and the preparatory work for a commercial treaty will soon be 25-year 6%
concluded.
due Apr. 1 1953. A substantial portion of the issue was
The relations with Czecho-Slovakia proceed satisfactorily and permit
withdrawn for sale in Europe. The bankers announced
optimism regarding the settlement of numerous frontier disputes and
subscriptions received in advance of the formal offering
that
rapprochefact,
there is a real
other questions. With all the Balkan States in
ment based upon its recognition of mutual interests.
were in excess of the amount of the issue. The company,
A commercial treaty was signed with Esthonia which has most cordial
stock is owned by the City of Altona,'imrelations with Poland. The friendship with Sweden and Denmark was whose capital
the City of Hamburg, Germany,
of
adjoining
arbitration treaties. The commercial mediately
strengthened by the conclusion
treaty with Norway was signed last year. Economic relations with those serves with electricity, gas and water, a population of
countries are steadily developing.
the sale of these bonds will be
The ratification by the Skuptchina of the Amity and arbitration pacts 280,000. Proceeds from
guarantees a further political and economic understanding with Jugoslavia. used to retire the company's outstanding 7% bonds amountA provisory commercial treaty was signed with Bulgaria, and the Polish ing to $2,500,000; for the completion of additions and
Government and the entire nation expressed a friendship with both
betterments and to reimburse the company's treasury for
Bulgaria and Greece in the relief action for earthquake victims.
Commerce with Austria Is steadily expanding, and in the discussion of expenditures made for such purposes.
the pending commercial treaty, Poland proved her sincere desire to reach
It is stated that the sound value of the mortgaged property,
a speedy understanding. The already friendly relations with Hungary
plant under construction and subwill be strengthened after the conclusion of the Amity treaty proposed by together with the electric
mortgage when completed, is $11,270,000 and
Poland.
ject
the
to
Poland's efforts in the Far and Near East have been equally successful.
that in addition the company either owns or has the exclusive
Relations with Japan are based upon mutual friendship along with the
valued at $1,730,000. It is
growth of mutual trade. The Polish Government is preparing a conunercial right to use other properties
agreement with China which will shortly be signed. The visit of the King also stated that the company's property is free from the
of Afghanistan to Warsaw concluded the exchange of documents ratifying
Dawes mortgage but the company is obligated to
the Treaty of Amity. and brought about the final stabilization of relations so-called
make annual Dawes payments, estimated at about 00,00
between the two countries.
After the visit of the Persian foreign minister to Warsaw, a final agree- a year. Further data in connection with the offering are
ment was reached concerning the ratification of a commercial treaty with
our "Investment News Department."
that country. Relations with Turkey also have been most satisfactory, given under
and a graphic illust(ation of this is found in the motion made by Poland
that Turkey should be invited to participate in the work of the preparatory German Savings Banks and Clearing Association
commission of the Disarmament Conference.
Obtains $17,500,000 Consolidated Loan from New
Relations with the Vatican are based upon traditional cordiality and are
to
friendship
shown
Poland
by
the
XI.
Pope
Pius
by
York Bankers.
characterized
Offering of $10,000,000 General Electric Co. of
Germany Bonds.
The National City Co. offered May 22, at 943i and
interest, to yield about 6.50%, $10,000,000 Allgemeine
. Elektrioitats Gesellschaft (General Electric Co., Germany)
20-year 6% sinking fund gold debentures, due May 1, 1948.
Proceeds from the sale of these debentures will be used in
part to reimburse the treasury for capital expenditures,
A German consolidated loan of $17,500,000 representing
joint financing for German Savings Beaks and Clearing
Associations, has been arranged with a group headed,*
Harris, Forbes & Co., and including Lee, Higginson & CO.,
Guaranty Co. of New York, E. H. Rollins & Sons, and The
Equitable Trust Co. of New York. The loan consists of an
issue of sinking fund secured gold bonds, 6% series due
1947, and according to Government authorization the
proceeds must be used only for the construction or improve,.
3228
FINANCIAL CHRONICLE
[Vor.. 126.
mentof gas and electric properties,water works and other rev- or any taxing authority thereof or therein. The following
enue producing public works for which there is a public need information is furnished by Bruno Asch, Esq., Treasurer
and income from which will be sufficient to provide the inter- of the City:
est and amortization requirements of the loan. It is stated
The city, located on the River Main, a tributary of the River Rhine,
that the new German loan comes as a result of an agreement with a population according to its 1925 census of 467,520 has been for
centuries one of the great banking and commercial centers of Europe, and
on foreign financing between the Reichsbank and the German Is
one of the leading industrial centers of Germany. The city includes
Minister of Finance, which permits external borrowings of among its industries the manufacture of electrical equipment,
chemicals.
and textiles which products are extensively exported to all the markets
dyes
muncipalities of less than $40,000,000 prior to the summer
of the world.
season and $100,000,000 for the entire year of 1928. The
Financial Statement.
amounts making up the $40,000,000 cover only three issues, Value of property subject to taxation (estimated)
$1,090,000,000
the Frankfort 63% issue offered May 22, the present Value of all municipally owned properties (estimated)
118,100,000
Taxable income of inhabitants for 1927 (estimated)
225,000.000
$17,500,000 municipal loan and an issue of City of Berlin Debt
bonds now being negotiated. Present financing by the
Internal,$27,791,278; external (incl. this issue),$9,850,000
Total
German municipalities through the German Savings Bank
37,641,278
Total debt of the city as shown above is less than 3.45% of the value of
and Clearing Association is said to be due to recognition
property subject to taxation.
by German federal and municipal authorities of the advanThe debt of the city other than the above $9.850.000 external bonds does
tage of financing through one central medium rather than not exceed $27,791,278. This internal debt consists of obligations contracted since the stabilization of the mark and of debts heretofore incurred
having numerous individual city issues. The German Savings in
the former currency of Germany as
under the law of the German
Bank and Clearing Association (Giroverband) represents Republic of July 16 1925. Under therevalued
Dawes Plan, which is now in operation
to
assure
reparation
payments
in
accordance with the Versailles Treaty
approximately 90% of the entire population of Germany.
(Article
it has been arranged to impose charges on municipally owned
There are approximately 2,500 member communities, utilities 248),
similar to those on private industrial undertakings. Payments
district associations and three important Provinces included, by the city's municipally owned utilities for this purpose for the year 1928
all of which serve as security for the Association's loans. are estimated not to exceed $49,000.
Properties and Revenues.
No other German loan outside of the Dawes loan has so
The revenues of the city are derived largely from taxes and from its municilarge a percentage of Germany's population and taxpayers pally
owned enterprises, including street
electric light and power
supporting it. An analysis of two previous issue of Girover- works, water supply, gas plants, marketsrailways,
and stock yards, all of which are
band 7% dollar bonds brought out in 1926 shows that 24% of modern construction. Since the stabilization of the mark gross ordinary
of the city have exceeded gross ordinary expenditures in every
of the proceeds went for gas supply, 20% for water supply, revenues
year. For the two fiscal years ending Mar. 31 the city has balanced its
40% for electricity and the remainder was divided among budget (at $25,240,000 in 1926 and $28,611,000
in 1927. For the year
harbor building, sea channel construction, tramways and ending Mar. 31 1928 budget estimates are balanced at $39,920,000. For
the same periods these revenues, including gross and profits from
public
small railways, and for markets. Foreign loans by the utility enterprises, have been as follows:
Association are approved by the National German Council Yr. End.
Taxes
Grossfrom
Net from
Mar. 31. Yield,
for Foreign Loans provided the income of the properties
public utility public utility Other
Total
enterprises. enterprises. Revenues. Revenues.
Involved is more than sufficient to meet interest and amor- 1926
$11,223,000 ($12,256,000) $3,944,000 810,073,000 825,240,000
tization requirements.
1927
12,829,000 (12,824,000) 3,932,000 11,850,000 28,611,000
$15,000,000 Loan for City of Berlin, Germany.
A group composed of Brown Bros.& Co.,New York Trust
Co., First National Corp.of Boston and J. Henry Schroder
Banking Corporation have purchased $15,000,000 City of
Berlin 6% bonds. Negotiations were conducted through
the Commerz-und Privatbank, A.G., Berlin. It is understood that a public offering of these bondslwilljbe made
during the coining week.
1928 (est.) 12,900,000 12,490,000*
14,530,000 39,920,000
*Beginning April, 1927, budget includes gross Instead of net revenues
from public utility enterprises.
Annual interest and sinking fund requirements on the total funded
debt.
Including this issue, of the city amount for 1928 to $1,766,823 or less
than
4.43% of the total estimated revenues of the city for the fiscal year
ending
Mar. 31 1928.
The total city owned properties as of Sept. 1 1927 were valued at over
$118,000,000 of which the value of the revenue producing properties aggregates over $75,000,000. For the fiscal years ended 1926 and 1927 the
average net profit to the city as shown above,after deduction of operating
expenses, depreciation charges and reserves, from all public utility enterprises is equivalent to more than three times the annual interest requirements of the entire internal and external debt of the city. On Apr. 1 1928.
a number of important industrial municipalities, with a total population
of 72,595, 1925 census, were incorporated with the city. None of the above
figures, therefore, reflect the increase in size and wealth of the city as a
result of this incorporation.
Offering of $6,250,000 City of Frankfort (Germany)
63'% Bonds—Books Closed.
E. H. Rollins & Sons and Redmond & Co. offered on
May 22 a new issue of $6,250,000 25-year sinking fund 63/2%
gold bonds, due May 1 1953, of the City of Frankfort-on- Denial of Reports that Japan is Negotiating a Foreign
Loan.
Main (Germany). The issue was offered at1993 and
Juichi Tsushima, Japanese Financial Commissioner to
accrued interest, to yield over 6.50%. The closing of the
books was announced on the day ofIthe offering. The New York, London and Paris, who is now in New York
proceeds of this loan will be used for improving, enlarging stated on May 18 that the report to the effect that the
and developing the City's revenue-producing public utility Japanese Government is negotiating a foreign loan is entirely
properties which contribute a very substantial proportion groundless. One of the reports (from London) appeared as
of the city's gross revenues. Net profits from the public follows in the "Wall Street Journal" of May 17:
It is rumored Japan is negotiating a foreign loan of 120,000,000 of which
utilities enterprises alone, for the fiscal years 1926 and £10,000,000
would probably be issued by a group including llongkong &
expenses,
depreciation Shanghai Banking Corp, Yokohama Specie Bank, Morgan, Grenfell
1927, after deducting operating
& Co..
and
Westminister
Bank, and a New York portion of $50.000,000 by J. P.
charges and provisions for reserves averageditlis stated, Morgan
& Co. Negotiations are subject to improvement in the Chinese
an amount equal to more than three times the annual and internal Japanese situations.
Interest requirements of total external and internal funded
debt. The new bonds constitute a direct and uncondi- Speyer & Co. Purchase Bonds of City of Berlin for
tional obligation of the city and while no assets or revenues
Cancellation Through Sinking Fund.
are specifically pledged, the city covenants that if in the
Speyer & Co., as fiscal agents have purchased for cancelfuture it shall secure any loan by lien on any of its revenues or lation through the sinking fund $159,500 bonds of the City
assets, these bonds will be equally and ratably secured. of Berlin 25-year
% gold loan of 1925. This represents
The bonds will be dated May 1 1928. An annual cumul. the sixth sinking fund instalment.
sinking fund of 13/2%, beginning May 11929, operates by
compulsory drawings at 100 and accrued interest, and is Bonds of Upper Austria in Definitive Form Available.
estimated to be sufficient to retire over 80% of the entire
The Chase National Bank is prepared to deliver at its
Issue on or before maturity. The bonds will be redeemable Trust Department, Province of Upper Austria
(Land
as a whole or in part (otherwise than through the operation Oberostermich) External Secured Sinking
Fund 63.%.
of the sinking fund) on May 1 1933 or on any int. date Gold bonds due June 15 1957, in definitive form, exchange
in
thereafter prior to maturity on 60 days' published notice for the outstanding temporary certificates.
at 100 and accrued int. to the date of redemption. The
Central Union Trust Co. of New York, is Authenticating Exchange of Interim Receipts for Definitive Bonds of
Agent. They are coupon bonds in denom. of $1,000 and
Mortgage Bank of Denmark.
8500 with privilege of registration as to principal only.
Brown Brothers & Co. announced that beginning May 21
Prin. and int.(May 1 and Nov. 1) will be payable in United 1928, they would be prepared to exchange their outstanding
States gold coin of the present standard of weight and fineness interim receipts for the Definitive Bonds of the Mortgage
at the office of E. H. Rollins & Sons, Boston, New York Bank of the Kingdom of Denmark 45-year 5% Sinking Fund
or Chicago, Paying Agent, without deduction for and free External Gold Bonds Series IX of 1927, dated Dec. 1 1927
from any present or future taxes of the German Republie to mature Dec. 1 1972.
Kix 26 1928.]
FINANCIAL CHRONICLE
F. C. Mortimer, Head of Committee to Investigate
Investment Trusts in California, Finds Belief
Exists That They Should Be Subject to Control.
Stating that "personally, I am opposed to too much Governmental regulation," Frank C. Mortimer adds "but
just as banks have no fear of public scrutiny and supervision by the Comptroller of Currency, State Superintendents and Banking Commissioners, so, some of our people
believe, organizations such as Investment Trusts, seeking
funds from the people of Southern California, should be
subject to some form of control and regulation for the general good." Mr. Mortimer, who is Vice-President of the
Citizens' National Trust & Savings Bank of Los Angeles, is
Chairman of the special committee appointed by the Los
Angeles Chamber of Commerce to investigate the operation
of Investment Trusts. Other members of the committee,
as indicated in our issue of May 12, page 2903, are Orra E.
Monette, of the Bank of Italy National Trust and Savings
Association; J. A. Benell, industrial engineer; and W. L.
Brent, of W. L. Brent & Co.
Mr. Mortimer makes the statement that "there is no way
that I know of to guarantee the safety of investments and
it would be unwise to attempt any such procedure. The responsibility for making investments is up to the investor
and his advisors. The purpose of our committee," he says,
"is to inquire into the whole situation and make such recommendations as may be fitting in the interest of the general
public in Southern California." Regulations governing the
conduct of investment trusts in California were given in our
issue of May 12.
through the growth of its invested funds. The present practice of investment trusts is not uniform with reference to this point.
There are three main types of investment trusta: (1) where the trust
issues securities against a fixed body of investments; (2) where the management of the trust had a limited discretion in changing its investments;
and (3) where the management has unlimited discretion. The importance
of management varies, of course, in each of these cases, but the need for
the investor's study of the details of the set-up, as distinguished from his
study of management, increases as managerial discretion is reduced.
New York Stock Exchange to Return to 3 P. M. Closing
Hour May 28.
The New York Stock Exchange has decided to return
to the five-hour trading schedule which had been observed
up to the current week; under a resolution adopted a
week ago, the daily trading period was fixed at 10 A. M.
to 2 P. M., beginning May 21, in order to relieve the staffs
of member firms from the strain incident to the recent
heavy volume of trading; this action was referred to in
our issue of a week ago, page 3058. On May 23 the Governing Committee decided to rescind its resolution of last
week, and to restore the former five hour day, from 10
A. M.to 3 P. M., which, the "Journal of Commerce" notes,
has prevailed in almost unbroken continuity since the rule
was established in 1873. The action taken by the Governing Committee on May 28 was announced as follows:
Benjamin M. Anderson Jr. of Chase National Bank on
Investment Trusts—Rapid Development of Movement Outgrowth of Credit Expansion—More Rigorous Study of Policies, &c., Urged.
In the view of Benjamin M. Anderson, Jr., of the Chase
National Bank of New York, "general conclusions regarding
the investment trust development are not justified at the
present time." He states that "there are undoubtedly strong
and well-managed investment trusts whose securities are in
every way worthy of public confidence. But it is perfectly
safe to state that the investing public has not been sufficiently critical of the general movement and that a more
rigorous study of the financial set-up, the policies, the management, and the investment lists of individual investment
trusts, together with an analysis of the nature and sources
of their profits, is to be recommended."
In further expressing his views on the subject in the
"Chase Economic Bulletin" Mr. Anderson says:
It is quite safe to say that in the absence of the great expansion of credit
which has taken place, the investment trust movement would have moved
much less rapidly than has been the case. Had the new capital coming
upon the market been only the ordinary volume of investors' savings, there
would have been, of course, a much severer competition for investors'
money, higher return to investors, and much less readiness on the part of
Investors to turn to new types of investment. There would have been
much snore critical scrutiny by investors of the types of securities offered
them. But in a situation where investors have had not merely the problem
of placing their current savings, but also the frequent problem of replacing
old investments paid off or purchasing new securities to replace those
sold at a profit (together with part of the profit), the demand for new
securities has grown rapidly and has been less critical than would otherwise
have been the case. Under these circumstances, it has been possible, not
merely for strong and conservatively managed investment trusts to place
their securities readily with investors, but also for other investment trusts,
whose management was not so surely experienced or so certainly conservative, to make large headway.
In the best of times and under the most favorable circumstances, it Is a
difficult and unenviable undertaking to invest the money of other people
to their satisfaction. It has been a particularly trying problem in recent
years, and the very circumstances which have made easy the financing of
investment trusts have also made difficult the problem of the management
of investment trusts in the selection of securities which would give
adequate yield and be satisfactory in other respects as well.
The rapid rise of the investment trust movesnent, moreover, has prevented the accumulation of the experience in investment trust management
which would justify us in looking with unmixed satisfaction upon the
extent of the development. The great movement has taken place on a
rising market, and not all of the existing investment trusts in the United
States have had adequate experience with falling markets or periods of
monetary tension. We have imported a British idea and made a large
scale application of it without first trying it out over a relatively long
period of time under American conditions.
One curious development showing the difficulties of the problem has been
one investment trust of the stock of another.
a certain amount of buying by •
•
•
Investors should in particular know whether or not it is the practice of a
given investment trust to count as current profits only the income from
securities held, or whether its practice is to count also the profits which
come from the sale of securities on a rising market. The experience of
British investment trusts would seem to prove that profits from the sale
of securities should not be counted as current income, but rather should be
set aside as reserves to offset losses which may come in bad years, and
that the holder of the stock of the investment trust should expect to gain
from these profits only indirectly as, over a period of years, the gains
exceeded losses, and the current return of the investment trust increases
3229
At a meeting of the Governing Committee of the New York Stock Exchange, held this afternoon, the following resolution was adopted:
Whereas, the results of the action taken by the Governing Committee
in closing the Exchange for the purchase and sale of securities at 2
o'clock P. M. indicate that the personnel of member houses will be relieved from unusual strain by Monday, May 28th, 1928, and the purpose
of such action achieved, therefore
Be It Resolved, that the resolutions of the Governing Committee passed
on May 18th, 1928, providing that the Exchange be closed for the purchase and sale of securities at 2 o'clock P. M., and for other purposes in
connection therewith, be rescinded as of Monday, May 28th, 1928, and
that on and after that date the Exchange shall close at 3 o'clock P. M.
as provided by the Rules adopted by the Governing Committee pursuant
to the Constitution.
It was stated in the "Evening Post" of May 22 that
smoldering resentment in Wall Street over the closing of
the Stock Exchange an hour earlier each day burst into
flame that day, and it was learned that the Governors of
the Exchange had been deluged with letters of protest.
The "Post" said:
According to many br'kers, the reduction in trading time has cut into
their business about 33% while it has saved their clerks little.
Those houses with Western branches complain that between the change
in time on the Exchange and daylight saving time the Western offices
have to close about noon each day. In California the closing time of
the New York market is about 10 o'clock.
Brokers declare that the Exchange was closed without giving them a
chance to vote on the question.
It was reported in well-informed circles to-day that the Exchange will
bow to the popular appeal and rescind the closing order next week.
From the "Journal of Commerce" of May 24 we take
the following:
Although the trading on the Stock Exchange on Monday, Tuesday and
yesterday was small in volume compared with days of preceding weeks,
many brokers complained that their business was cut down a third by the
dropping of an hour, while some wire houses felt that the shorter period
had a tendency to discourage long-distance orders. Those favoring the
briefer period of trading held that the complaints against the shorter day,
in so far as curtailing business, had no justification in fact. In this
connection it was said that the fall in volume of transactions was not
traceable to the four-hour day but to other causes which would have been
operative had the longer session been effective.
Th shift back to the old closing hour on the part of the local Stock
Exchange will have its reflex on the New York Curb Market, and on the
out-nf-town stock exchanges, including those of Montreal and Toronto,
all of which cut trading an hour to coincide with the four-hour period on
the New York Stock Exchange. All of these exchanges are expected to
resume Monday morning under their former time schedule.
The intention of the Exchange to close to-day (May 26)
was noted in our issue of a week ago (page 3058).
Opening of Los Angeles Curb Exchange on June 1.
The opening of the Los Angeles Curb Exchange on June 1
and adoption of the Post System of trading, in lieu of the
Call System, on the Los Angeles Stock Exchange, will make
another milestone in the financial progress of Southern California, it is pointed out by the press of Los Angeles. The
organization of the curb market was started soon after the
first of the year. The new market will be under the supervision of the Los Angeles Stock Exchange and will function
as a subsidiary of that institution. A separate group of officers and Board of Governors have been selected who will
take charge of its affairs. When announcing the opening
date of the curb, D. G. Grant, President, declared that the
heavy increase in investment activity in Los Angeles has
necessitated enlarging facilities for the transaction of orders.
During the recent heavy movement in New York stocks, it
is said to have developed that Los Angeles financiers have
played a very important part in eastern trading. Foreseeing
3230
FINANCIAL CHRONICLE
the trend of security activity, officials of the Los Angeles
Stock Exchange decided to establish a curb market and to
enlarge its own facilities which will stimulate sales and increase the speed of executing orders.
Excelsior Savings Bank Sees Entry of Commercial
Banks into Small Loan Field As Tending to Divert
Funds from Savings Banks.
[VoL. 126.
"Liable in Every Case."
"The statute might have made the directors personally liable to depositors in every case if it had been so minded." Justice Holmes wrote in the
opinion, "and if it had purported to do to, whoever accepted the office
would assume the responsibility.
"The Supreme Court of Kansas affirmed Judgments against Ferry and
reversed judgments in favor of the executor of Kramer based on Kramer's
Incapacity to know of or assent to the deposits in question, and ordered
judgment against him. In so doing it violated no provision of the constitution of the 'United States.
The entry of the commercial banks into the small loan
"His Duty to Know."
"As a matter of law there is nothing new in charging a party with knowfield is a new example of the handicaps of the savings
ledge of what is his duty to know, in this case the insolvency of the bank
bank as compared with every other kind of financial insti- or with assent to deposits that he must expect while the bank's doors remain
tution, points out the Excelsior Savings Bank. The result open. In most contracts men take the risk of events over which they have
or no control. The acceptance of a directorship In as voluntary
of the small loan department of commercial banks will be Imperfect
an act as a contract.
to create new investors out of the savings bank "class"
"The law as construed by the Kansas supreme court, meets its most
and thus to divert funds from the savings banks to se- severe test In the cases against the executor of Kramer (A. T. Kramer, deceased), because Kramer, the not so ignorant nor incapable of knowledge
curities, says the bank. "There can be no doubt of the ur- as thought by the
court of first instance, was severely ill at the time the degent need of more small loan facilities," declares Reginald posits are made."
Three Dissent.
Roome, President of the Excelsior Savings Bank. "The
Justice Sutherland wrote a dissenting opinion in the case of Kramer, who.
problems demands a solution of itself, not one which creates
It was shown, was physically
of "Investigating and ascertaining
new problems. The logical banking arrangements for the the condition of the bank," atincapable
the time the deposits were made. Justices
small loan borrower should be similar to those for the Butler and Sandford concurred in the Sutherlabd dissenting opinion.
It was Justice Holmes who told Senator Carl M. Geddes, attorney for
small account saver. The savings banks have developed a
the depositors in this case, that he was "just talking atmosphere" in one
system of saving to give the depositor the highest return, phrase of his argument, but just the same Justice Holmes
wrote the opinconsistent with State-supervised safety, and at the mini- ion sustaining Geddes' side of the case. Senator S. M. Brewster, former
attorney general. represented Kramer and persuaded three of the nine
mum of administrative cost. A similar system is needed Judges
he was right.
for small loans, but it is practically impossible to operate
such a system within the 6% limit. The commercial bank Amendments to Virginia Banking
Act Interest on
can afford to attempt this as a sort of speculative investDeposits Limited to 4%-Branch Banking Pronient only because it hopes to make a future regular
visions.
"baby bond" buyer out of the borrower. Mr. Roome
Amendments to the Virginia Banking Act, passed at the
adds:
"This means that the large class of thrifty people who gave up a few
thousand dollars over a period of years will be encouraged to begin buying
securities early-even before they have the money, since they will be
able to borrow it. This is the class which the savings banks have served
since their beginning.
"The development et the services of savings banks to their depositors
ham had to overcome many difficult and unnecessary obstacles. The recent
liberalization of the approved investment list is one of very few gains
made by the savings banks in many years. At present no extra dividends
can be paid until a surplus is 25% of deposits. Before the war the ratio
was only 15%. A 20% retie would not affect safety and extra dividends
would certainly be we/comae M the depositors who could make good use of
the money.
"There is also an urgent need of trust facilities for the class of limited
means. The banks and trust companies serve the well-to-do through
fiduciary and other functions but those to whom every cent counts
have
no such facilities or sources ef help. The logical place for
such people
to go to is the savings bank and the development of such facilities
should
be of untold benefit to the millions of savings bank depositors.
"The mnall loan idea is only a superficial remedy
for the conditions it
combats. More urgently needed are preventive methods.
The only effective way to head off the loan shark is to inculcate
systematic saving and
to help the thrifty to handle their savings for
the benefit of those to
whom they leave them."
Kansas State Bank Commissioner Issues Order
Limiting
Interest of State Banks on Deposits to 3%.
The Kansas City "Star" in advices from
Topeka May
9 says:
Roy L. Bone, State Bank Commissioner, sent an
order to-day to all the
State banks in Kansas directing that after July 1,
3% would be the limit
of interest payments for either time deposits or
savings accounts In this
State.
Bankers in Pottawattamie County, Iowa, Announce
Reduction in Interest Rates.
A resolution authorizing the reduction of interest
rates
by Pottawattamie County banks (Iowa), effective
July 1,
was passed by the Pottawattamie County Bankers
Association at Weola, Iowa, May 5, according to the Omaha
"Bee"
of May 17. The item states:
Rate reductions similar to those adopted recently
by Council Bluffs
banks are as
follows: Savings account, 3% per annum; time
certificate
of deposit for one year, 4%; time certificates of
deposit for less than year,
3%.
Officers elected for the coming year are: J. W. Nichols,
Walnut, President; Rudolph Stender, Avoca, Vice-President; Robert
Turner, Council
• Bluffs, Secretary, and J. W. Davis, Avoca, Treasurer.
Kansas State Banking Law Upheld by U. S. Supreme
Court.
Not only the Kansas State law making bankers
liable to
depositors for funds deposited after a bank actually is insolvent is valid, but it is within the power of the State
to
enact a still more drastic statute and still not violate the
constitution of the United States, according to a decision
handed down on May 14 by the United States Supreme
Court. Noting that the decision was handed down in the
Ferry cases, coming from the failure of the Butler County
State Bank, the Topeka "Capital" says:
recent session of the Virginia Legislature, are to become
effective on June 16. A summary of the new provisions
has been prepared by S. W. Keys, Chairman of the Committee on Revision of State Banking Laws of the Virginia
Bankers' Association, and we give the same herewith:
1. Banks authorized to guarantee payment of bonds, bills, notes and other
obligations, having not more than six montha to run, and may purchase
their own stock only for the purpose of protecting debts previously contracted, in which case said stock must be disposed of within three months
from time acquired. (Sec. 12.)
2. Branch banking limited to cities and towns in which parent bank is
located and to other cities of not less than 50,000 inhabitants, with requirement that parent bank have not less than $50,000 capital. Privilege
of establishing such banks left to discretion of State Corporation Commission. (See. 13.)
3. Matter of issuing charters for new banks hereafter left to discretion
of State Corporation Commission. (Sec. 15.)
4. Minimum capital requirement for banks hereafter organized raised
from $15,000 to $25,000. (Sec. 16.)
5. Vacancies on board of directors must be filled within 90 days from
time vacancy occurs. (Sec. 21-)
6. A contract by any bank for the payment ofinterest on time or savings
deposits at a greater rate than 4 per centum per annum is unlawful and unenforceable. (Sec. 26.)
7. Banks may not invest in excess of 50 per centum of capital and surplus in banking premises, including furniture and fixtures, and including
Investment in company or corporation representing ownership of such
premises. (Sec. 31.)
8. Banks not liable for non-payment of check through error or mistake
and without malice in excess of actual damage sustained and proved.
(Sec. 41.)
9. Where items are forwarded direct to paying bank, remittance made
In settlement for such items shall become prior lien on the unpledged assets
ofsuch bank, and in case of failure of paying bank before final settlement of
draft given In payment of such items, the receiver thereof shall pay such
dishonored checks or drafts from the first moneys coming into his hands
other than from previously pledged securities. (Sec. 47.)
10. Banks may lend not in excess of 25% of capital and permanent surplus without special resolution of Board of Directors, and not in excess of
40% of capital and permanent surplus with resolution of board. Real
estate loans made for bona fide resale,loans made upon faith or security of
agricultural, manufactured, industrial products, and live stock having
ready market value not included in this limitation, nor is included liability
as endorser the endorsement of such paper as is otherwise adequately
secured.
11. The aggregate of loam with the stock of the lending bank as collateral shall at no time exceed 25 per centum of the paid-In and unimapired
capital stock of the lending bank. (Sec. 48.)
12. All loans of every character in excess of 15 per centum of capital
and surplus shall be approved by a majority of board of directors or executive committee. (Sec. 48.)
13. Banks prohibited from making loans to officers, directors, ci rkm or
employes except with good collateral or endorsement, and all on
officers, directors or employes must first be approved by a majority ftb
Board of directors, or by a committee appointed by the board to acs.
(Sec. 49.)
14. "tanks may not, without the written consent and approval of the
Banking Department, borrow money and pledge assets in excess of capital
and surplus, and are prohibited in any event from pledging assets in excess
of 150 per centum of the amount so borrowed without first securing the
consent and approval of the Banking Department. Certain exceptions.
(Sec. 50.)
15. No officer, director or employe of bank may Issue the note of such
bank or trust company except and until authorized so to do by formal
action of the Board of Directors, duly entered upon minutes of the board,
and banks are prohibited from issuing their certificates of deposit for
borrowed money. (Sec. 51.)
16. malicious and wilful derogatory statements made, circulated, or
transmitted, affecting or relating to the financial standing of any bank
classed as misdemeanor with heavy penalty. (Sec. 59.)
17. Personal representative of a deceased maker, surety or endorser of
an obligation for payment of money may execute a renewal (or renewals) of
MAY 26 1928.]
FINANCIAL CHRONICLE
3231
the Legislature and not
to be appointed by
a period not exceeding two years commission
such obligation from time to time for
not to exceed in amount the by the Governor. The "Times" adds:
from date of his qualification, such renewals
of the association
This was learned to-day after the annual convention
original obligation. (Sec. 73.)
bank to his personal in the Hotel Chelsea had come to an end.
a
in
deposit
a
makes
agent
or
18. If any fiduciary
the present method
in his own name as fiduciary,
While several speakers at the convention assailed
credit of checks drawn by him upon an account
account in the name of his principal. of granting charters, and particularly the ease with which charters are
or of checks drawn by him upon an
or of checks payable to his prin- obtained, no mention of a remedy was made by the speakers. However,
if he is empowered to draw checks thereon,
the bank receiving such deposit at the close of the meeting it was learned that a well defined movement
cipal and endorsed by him as fiduciary,
fiduciary is committing thereby a is under way to bring about a change and that it will be discussed at a
Is not bound to Inquire whether the
from to-day. The bankthe bank is authorized to pay the
meeting of the Executive Committee two months
breach of his obligation as fiduciary; and
the personal check of the fidu- ers are said to be of the opinion that it is a mistake to centralize so much
amount of deposit or any part thereof upon
unless the bank receives the de- power in the hands of one man.
ciary without being liable to the principal
investigation of the
that the fiduciary, in making
This decision of the bankers follows the legislative
posit or pays the check with actual knowledge
g a breach of his obliga- present system which was ordered as a result of charges of unfairness
such deposit or in drawing such check, is committin
facts that its action in receiving and influence.
tion as fiduciary, or with knowledge of such
bad faith." (Sec. 74 quoted.)
Attack Made in Convention.
the deposit or paying the check amounts to
attacked on the convenThe present method of granting charters was the Commercial Trust
President of
tion floor to-day by William J. Field,
E. C. Stokes Before New Jersey Bankers' Association Says Company of New Jersey, of Jersey City, who later was elected President
had been its Secretary.
Federal Reserve System Tends to Centralization of of the association and who previously
we suffer from the 'mushroom' banks is
evil
greatest
the
Warns
"Probably
Bank
Reserve
to acquire new
Power—W. R. Burgess of Federal
the high tension competition that leads to drastic moves
s in
Against Speculative Excesses—Move for Banking Re- business," Mr. Field said. "Dtany of the new banking institution
inexperienced in
New Jersey are manned by so-called business men,
form in New Jersey.
regardfew,
a
banking technique, and were started primarily to enrich
ExtenWilliam J. Field, President of the Commercial Trust less
of economic conditions and safety of the depositing public.
of many new
Jersey
New
the
of
y
Secretar
sion of the banking business through the organization
Company of New Jersey and
to
s in locations where existing banks would seem
Bankers' Association, for the past quarter of a century, banking institution
banking.
furnish adequate facilities may prove a serious menace to
organiza
State
that
the
of
t
find
Presiden
will
was on May 19 elected
"In almost any city where new banks are organized you
new banking capital. A
tion at the conclusion of the three-day annual session the changes are not adding a material amount of
stock is resting, as security for loans, in
new
the
sucof
In
percentage
J.
large
N.
City,
Atlantic
Chelsea,
held at the Hotel
s are being
other banks. In other words, the assets of existing institution
ceeding F. Morse Archer, retiring President, Mr. Field drawn on to furnish the so-called new capital. This is pyramiding presof stress."
received recognition by the members of his long period of ent bank assets and may result seriously in ntimes
between
Mr. Field spoke also against competitio in interest ratesreturn on
continuous service to the association since its organiza- banks,
for high
desire
a
to
led
high interest costs
that
stating
tion. Other officers elected at the annual business session investments and sacrifice of security.
, also attacked
F. Morse Archer, retiring President of the association
were William J. Couse, President of the Asbury Park
methods in the State.
control of
Trust Company, Vice-President; Levi H. Morris, Presi- banking
obtaining
ns
"The growing practice of holding corporatio
dent of the Newton Trust Company, Treasurer, and banks by stock purchases is causing considerable anxiety," he said. "The
un-American. In 1902 there were 223
Armitt H. Coate, Secretary. In a statement presented movement is monopolistic and
cannot be
in New Jersey, while in 1927 there were 569. Banks
banks
t
Presiden
C.
Stokes,
E.
absence
his
in
on
of individuals.
at the conventi
created by the mere filing of a certificate by a group
and inlightly
charters
that
of the Mechanics National Bank of Trenton, declared
"This association should not stand by and see
power to grant charters should be lifted out
The
a
granted.
does
ely
as
considerat
ed
this
country
ever
threaten
has
trust
"no
to all sorts of powerof the hands of a single individual who is subjected
in the hands
gigantic money trust now forming through the agency of ful
influence of a personal and political nature and placed would deal
corporate ownership of bank stocks by holding com- of a commission like the Public Utilities Commission, which
panies." The Philadelphia "Ledger" in reporting this with each application on its merits."
stated:
t
"Our law prohibits branch banks, except within the same community,"
nd Federal Reserve Bank Raises Discoun
wrote Mr. Stokes, "but if a corporation buys up a number of banks Clevela
6%.
,
4
to
4
From
Rate
become
lly
automatica
throughout the State and controls them, these
branch or chain banks, and the branch bank law is nullified.
Announcement that the rediscount rate of the Federal
to
Fears Rediscount Control.
Reserve%ank of Clevelandi,had been increased from 4
by the Federal Reserve Board.
"I am not an enthusiast over the Federal Reserve System, because it
7:24
Ma
on
made
was
tends too much toward paternalism and centralization of power. A hold- iKa
d rate became eff-eaRre—REg 25. All of the
ing company can obtain control of a sufficient number of member banks The advance
Kansas City ars
of the various Federal Reserve districts to avail itself of the credit Reserve banks except San Pranciseo and
facilities of all of them.
level.
%
43on the
ps of the Federal Reserve Banks, and now
"It can control the directorshi
thus control rediscount rates, a most dangerous power.
"The possibilities of this holding-company octopus are gigantic and
far reaching. The independent banking system of America should be
preserved. The stocks should be owned by individual persons, and
corporate hodling companies should keep their hands off this greatest
source of American prosperity."
The "Ledger" also states that a warning to banks which
are members of the Federal Reserve System and which
have been borrowing heavily during the recent past,
against speculative excesses, was sounded by W. Randolph Burgess, Assistant Federal Reserve agent, of New
York, before the Association on May 18. It says:
Mr. Burgess declared that "the responsibility for any further increase
in credit and the nature of its use, rests directly upon the member
banks."
Loans and investments of member banks during the last ten weeks, he
said, have increased $1,000,001,000, following a previous increase of another $1,000,000,000 during the preceding six months.
"This represents a rate of increase much more rapid than is required
to meet the demands of agriculture and trade," said Mr. Burgess. "Onethird of the increase was for commercial loans and two-thirds for loans
on stocks and bonds.
"Experience of the past has indicated that increases in credit more
rapid than are required by the country's trade usually lead to unwholesome credit situations. Money not employed in trade finds its way into
speculative excesses of one kind or another, and at present there is evidnce that this is occurring.
Huge Store of Gold.
"Now, the Federal Reserve credit reservoir is far from dry. We have
a huge store of gold which can meet any ordinary need for some years to
come. But that hardly constitutes a reason for wasting our reserves in
a more rapid increase of credit than the country's trade requires.
"The Federal Reserve has no powe rto determine specific uses of credit.
The member banks now owe the system $800,000,000 and are placing at
the service of speculation a larger amount of money than ever before.
The responsibility rests with them."
According to Atlantic City advices May 19 to the
"Times" the Executive Committee of the New Jersey
Bankers' Association, believing the situation demands a
drastic remedy, will discuss the advisability of recommending to the Legislature that jurisdiction of bank charters be removed from the hands of an individual, the
Commissioner of Banking, and be placed in those of a
Close of Hearings on Strong Bill Amending Federal
Reserve Act to Effect Stabilization—Charles S.
Hamlin of Reserve Board Opposed to Proposal for
Publicity of Acts of Board—Praises Secretary
Mellon.
Secretary Mellon's participation in Federal Reserve Board
"great
discussions as Chairman ex-officio has proved to be a
to
help" to the Board in the "last analysis," according
it
Board,
the
of
member
a
Boston,
of
S.
Hamlin
Charles
New
the
to
24
May
dispatch
IS stated in a Washington
say:
York "Journal of Commerce," which goes on to
influential factor in helpThe great prestige of the Secretary has been an
it was asserted to-day by
ing the Board to work out policies for the System,
his testimony before the
Mr. Hamlin in response to interrogating during
in connection with the hearing
House Committee on Banking and Currency
on the Strong stabilization bill.
way Secretary Mellon can speak
I have found the very greatest help in the
asked by Representative Goldsborto the Board," said Mr. Hamlin when
the same viewpoint recently
ough, Democrat, of Maryland, if he shared
Miller,the California member
expressed to the committee by Dr. Adolph C.
be changed so as to exclude
of the Board, who held the existing law should
members. "My opinion
ex-officio membership,reducing the Board to five
is not the same." added the witness.
had contended the
In voicing his views to the committee Dr. Miller
Currrency, as ex-officio memTreasury Secretary and Comptroller of the
relating to the Federal
bers, could not devote sufficient time to problems
them by reason of their
Reserve system because of the demands made upon
how important questions
respective positions, lie brought out at the time
by one of the ex-officio
frequently had been decided through a vote cast
meeting to make a quorum
members who had been hurriedly summoned to a
acquainted with the
or vote without sufficient opportunity to become
particular matter before the Board.
of the Treasury has devoted
"I can remember no case where a Secretary
Mellon," was
as much time to the business of the Board as has Secretary
in answer
the sharp reply made by the Federal Reserve Board member Alabama.
to a related question put by Relresentative Stanek, Democrat,
Mr.
permit
and
further
In this connection Mr. Hamlin said he would go
meetings when the
Mellon to send one of his tinder Secretaries to attend the
given
had been the help
Secretary himself could not be present, so great
with the Board.
through the link bringing the Secretary in contact
representation
A plan suggested by Re; resentative Steagall providing
was quickly dison the Board from each of the twelve Reserve districts
turn the Doird Into a lektiamissed by Mr. Hamlin, who declared "it would
3232
FINANCIAL CHRONICLE
lative body and prove injurious to the System."
The witness added it
would be to the best interests of the country to
keep the body small, though
reiterating his earlier statement that ex-officio members
should be included.
Going into executive session at the conclusion
of Mr. Hamlin's testimony,
which brought the hearings on the Strong
bill to a close so far as this session
Is concerned, the committee voted to favorably
report two pending bills
relating to the Federal Farm Loan Bank
Act. One bill gave the Federal
Farm Loan Board full authority to appoint receivershi
ps, and the other
measure would amend the law so that its provisions
may include Porto Rico
and other insular possessions of the United States.
Mr. Hamlin, in testifying before the Committee on
May 23, voiced his objections to the publicity provisions
of the Strong bill, the "United States Daily" indicating as
follows what he had to say:
[VOL. 126.
Dr. Cassel said it would be better for the world banking
situation
some other method to combat speculation. The Federal Reserve to find
system.
said Dr. Cassel. in his opinion, should have no other function
than that of
giving the country a stbale monetary standard and
the fixing of discount
rates.
The House paid high tribute to the noted Swedish economist,
when the
membership stood and applauded his presence in the diplomatic
section of
the gallery, following his appearance before the committee. In
calling the
attention of all of the House to the presence of the distinguish
ed guest
Chairman McFadden referred to Dr. Cassel as "one
of the world's greatest
economists."
Under questioning by Representative Strong, author
of the pending legislation, the economist contended that in his opinion the Federal
Reserve
system could control the price level of commoditie
s by exercising its powers.
Dr. Cassel asserted, however, that the present
price level is the level most
desirable to keep. He referred to the calculation known
as the "1926
level" made by the Department of Labor.
Touching on the question of stabilizatio in connection
n
with employment, the economist declared "increasing of wages
is one of the greatest
aims of society, but we cannot give the working
class increased wages by
falsifying the monetary capital." He said
nations can only bring about
Increased wages to labor through economic
development in building programs, &c.
The witness said his doubt as to the efficacy of
the provisions was based
on a conviction that it would be intensely difficult
for the Federal Reserve
Board to make the public statements required without being
misunderstood.
The Committee had invited other members of the
Board to attend the
session but had time only to hear a part of Mr. Hamlin's views.
A letter
was received from Edward H. Cunningham, another
member, however,
saying he did not desire to testify at this time but informed the
Committee
his silence should not be construed either as in acquiescen
ce or in opposition
to the bill before the Committee.
Statements before the Committee by Charles S. Hamlin
Regarding the publicity provisions, and the possible difficulty to which
administration of them might lead, Mr. Hamlin declared, he had known of the Federal Reserve Board are noted in another item
of circumstances where rate changes were involved when
it was impossible in this issue.
for the Board to know or determine the reasons actuating
Federal Reserve
Bank directors in seeking a change of rate. He told the Committee
that
If the Board were to comply fully with the provisions, it would mean
that
a "poll of the bank directors ant members of the Board" would
have to be Meeting of Federal Advisory Council with Federal
made each time the Board acts on a question involving a bank.
Reserve Board—Cheaper Money Believed DeMr. Hamlin added that when it came to an exposition of "reasons",
he
pendent Upon Reduced Security Trading—No
could conceive of many situations wherein the Board would be required
to
make a statement, when it would be compelled to discuss not only
Statement Issued.
present
conditions but conditions of the past and of the future. He suggested that
The meeting of the Federal Advisory Council with the
it might not be difficult to analyze the facts of the past or the
present,
but any discussion of the future would amount to speculation.
Federal Reserve Board held a week ago, adjourned without
"And when any discussion as to the future is attempted," he continued, any statemen
t being issued. According to Washington
"it is likely to result in speculative action by others."
The action of the Board in establishing a rediscount rate for the Federal advices published in the May 19 issue of the "Wall Street
Reserve Bank of Chicago was discussed by Mr. Hamlin briefly. He pointed Journal", that paper further says:
•that circumstance as one in which the Board would have been totally
The Council made a number of recommendations to
the Federal Reserve
unable to state all of the reasons which entered into its action or the action Board in
connection with credit questions, presumably including the
of the bank directors, saying that few of the Board members or bank brokers' loan
problem, but no hint of the nature of these suggestions was
directors had acted for the same reasons.
forthcoming.
Dr. Gustav CasEel was heard by the Committee en
The impression was gained that new discount
rate of 43i% established
May 18, and reference to what he had to say is made in by the New York Reserve Bank might represent the high point of discount
rates for the present. Other reserve banks that have
not yet adopted the
another item in this issue.
% rate are expected to do so soon, although some may
delay in order
to take advantage of business at the 4% rate for awhile.
Some opinion holds that the 4%% rate at New York
should
Dr. Gustav Cassel at Hearing on Strong Bill Amending reversal of the gold movement resulting in imports of gold. not cause a
Federal Reserve authorities are inclined to
Federal Reserve Act to Effect Stabilization, Urges
place considerable confidence
in the co-operation of Reserve Basks to handle the
credit situation. For
Co-Operation to Limit Demands for Gold—Asks the past
six months Federal Reserve policies have been aimed at
tighter
Central Banks to Unite Against Threatened money. Some believe that that end is now being attained. Presumptio
n
Is that Federal Reserve System will watch developments closely under
Scarcity—Rediscount Rise Disturbing Influence.
the
new 43i% rate, and if possible avoid any action to produce
further inAt the hearing on May 18 before the House Banking and creases in discount rates.
Competent authority here is of the belief that as soon as operations
Currency Committee on the Strong stabilization bill, Dr.
on
Gustav Cassel of Stockholm, warned against a threatened the stock market become less dramatic the country may expect cheaper
money.
scarcity in the world supply of gold, and urged closer co-operation between the Federal Reserve System and the central
banks of Europe as a means to economize in the use of the
monetary gold stock. The aim of this co-operative management, he said, would be to limit the monetary demands for
gold. This is learned from the Washington account of the
hearing to the New York "Journal of Commerce" from
which we also take the following:
Tax Reduction Bill Passed by Senate and Sent to
Conference—Action By Conference.
The tax reduction bill was on its way to final passage
by Congress yesterday (May 25). Following the adoption
of the bill by the Senate on May 21 (by a viva voce vote)
the bill, which had passed the House on Dec. 15 last, was
sent to Conference. As passed by the Senate the bill provided
for a reduction in taxes of $205,875,000, as compared with a
reduction of $289,765,000 under the House bill. As reported
to the Senate on May 1 by the Senate Committee on Finance,
the measure provided for a total tax out of $200,085,000.
On May 24, the conferees agreed upon a bill involving a total
reduction in taxes of $222,495,000. The changes agreed upon
by the conferees on May 24 follow:
"This means," explained Dr. Cassel, "that so far as possible we
should
try to stabilize the value of gold." Dr. Cassel said he did not
think the
value of gold should go back to the pre-war status. There is no
reason,
he said, for making alterations.
Reasons given by Dr. Cassel for his belief that the world faces
increasing scarcity of gold were laid to constant economic development and
the
small quantity of fresh gold being mined in South Africa. It is a fact, he
said, that in the past twenty years there have been few new gold mines
opened in South Africa. He added that the life of a mine is about 20 years.
Cites Conservation Steps.
He used in his argument the recent step taken by England to conserve Corporation rate.reduced 13% to
12%
$123,450,000
the use of gold. He also pointed out that France is taking steps to restore Corporation exemption,increased
$2,000 to $3,00(J
12,000,000
itself to the gold basis.
Automobile tax,repealed
66,000,000
Dr. Cassel maintained that the responsibility of the central banks of Admissions tax, exemptions increased
by 75 cents to $3
17,000,000
Issue should be emphasized to the world. He asserted that he submitted Club dues,exemption raised $10
to $25
1,000,000
a program to the League of Nations in 1920 to guide the world in econo- Earned income allowance,increased
$20,000 to $30,000
4.500.000
mizing on the gold supply. One of the methods recommended, he said, Cereal beverages,repealed
185,000
was discontinuance of the use of gold coins, but the suggestion was not Wine taxes,reduced
1.000.000
adopted, he added.
Foreign-built yachts,repealed
10,000
Declaring this country is independent because it holds more than one- Narcotics. druggist's fee reduced from
$6 to $3
150.000
half of the world monetary gold stock, Dr. Cassel contended that in his
Total reductions
opinion the United States could help the countries of the world to repay
$225,295,000
their debts to the Federal Government by co-operation with the central
Increase in Revenue.
banks to bring about a free gold standard.
Withholding tax at source
$2,000,000
No questions regarding the scheduled conference between central bank Prizefight admissions 25% over $5
750,000
heads and an officer of one of the Federal Reserve banks were directed at Foreign-built yachts.customs
50.000
Dr. Cassel.
Told by Chairman McFadden at the outset of the hearing that the
Total increases
$2,800,000
United States was in the throes of abnormal speculative activity on the
New York Stock Exchange and asked for an opinion for a remedy. Dr.
Net reduction
$222,495,000
Cassel contended that "by moral influences there should be a way to
In the form in which it was passed by the Senate the bill
check speculation."
reduced the corporation tax, now 1334% to 1234%. Under
Criticises Rediscount Rise.
lie deplored the necessity of the New York Federal Reserve Bank in- the House bill the corporation tax was fixed at 1134%. As
creasing its rediscount rate from 4 to 43i% yesterday, because, he said, indicated above, the
conferees have made the tax 12%.
"it disturbs the whole monetary structure of the world."
Asked by Committee members if speculative activities could be curbed Regarding yesterday's action CMay 25) by the conferees on
by the Federal Reserve banks' increasing discount rates, the Swedish
econo- the bill, we quote the followinglUnited Press advices from
mist admitted the action probably is taken with such a view in mind,
but Washington to the "Sun.".
31Ar 26 1928.]
FINANCIAL CHRONICLE
The Senate this afternoon adopted the conference report on the tax reduction bill calling for $223,495,000 tax cut. The action followed vote
killing an amendment which would have given publicity to tax returns.
There was no record vote on adopting the conference report, but on the
publicity amendment,the vote was 57 to 23 in favor of its elimination.
The House is expected soon to approve the conference report, after
which it goes to President Coolidge for his signature.
Consideration of the House bill was brought under way
by the 'Senate on May 3. The adoption of the bill by the
Senate on May 21 came late at night after it had been in
continuous session from 10 A. M. To adjust the differences
between the two bills, Speaker Longworth of the House on
May 22 named as the House conferees Representatives
Hawley (Oregon), Chairman of the Ways and Means
Committee; Treadway (Massachusetts), and Bacharach
(New Jersey), Republicans; Garner (Texas), and Collier (Mississippi), Democrats. The Senate conferees
originally named were Senators Smoot (Utah), Chairman
of the Finance Committee; McLean (Connecticut), and
Reed (Pennsylvania), Republicans; Simmons (North Carolina), and Gerry (Rhode Island), Democrats. On May 23
Senator Simmons found it necessary to relinquish his appointment by reason of his other Senatorial duties, and
Senator Pat Harrison (Mississippi), was named in his
stead. The conferees held their first joint session on May 23.
According to the "Journal of Commerce: While making
considerable headway in the reading of the provisions of the
tax measure it was stated that none of the controversial
features were taken up at that time. Those features would
include rates as well as administration provisions. As we
noted in our Issue of May 19 (page 3064) the Senate on
May 12, by a vote of 40 to 38, adopted the prbposal of Senator Simmons (Democrat) for a graduated tax on corporations with annsal incomes under $15,000. The provision
is not carried in the confetence report, the "Times" in its
Wastington advices May 24 stating:
'400 House conferees receded on the provision for a graduated tax on
smelt corporations,'which was inserted by the House at a revenue cost
61'424.000.000, an was once adopted but later rejected by the Senate. It
is not inthercenferenceagreement.
The Senate,conferees receded co an equally imporant feature, the
change in the middle bracket surtaxes on individual incomes between
820,000 and 880,000: at a revenue reduction of $25,000.000. The House
had nothing concerning surtaxes in its bill and the conferees agreed to
eliminate the Senate amendment, which was inserted by Senate Democrats.
The House conferees agreed not to press another amendment to the
House bill which was rejected by the Finance Committee before it reported
the measure to the Senate. This was the Garner plan to force affiliated
corporations to make separate tax returns, and would,its author contended.
raise 820,000,000 in revenue.
3233
debts applied to the sinking fund for the retirement of Liberty bonds. The
vote for 30 to 26. He argued that under such a program the public debt
would be paid off in 1950 and that in 1951 there would be $800,000,000
available for tax reductions.
When Senator Reed Smoot, Chairman of the Finance Committee, who
had charge of the bill, announced about supper time that he intended to
hold the Senate in continuous session until the tax reduction measure either
had been adopted or rejected, he naively added:
if
"I hope we can get through by midnight, but I make no promises
things keep going as they are now."
WisconAt that moment Senator John J. Blaine, Republican insurgent,
revenue
sin, was on his feet pleading with the Senate to adopt a rider to the
enter
bill under which goods imported from abroad would be permitted to
return
this country duty free, provided the person shipping it took back in
the same value in American farm products.
11.
Before 8 o'clock it had been defeated by the decisive margin of 52 to
the
Immediately before Blaine opened his drive for tariff revisions,
in the morning
Senate had been locked in a bitter fight since 10 o'clock
candidate
over a proposal by Senator James A. Reed, Democrat, Missouri, a
the tax
for the Demicratic Presidential nomination, to attach a rider to
farmer.
bill providing an export debenture plan for relief of the American
required
Under the Reed amendment the Secretary of Agriculture would be
agrian
exporting
after July 1 to issue an export debenture to any person
an
cultural commodity from the United States to a foreign nation in
amount equal to 25% of the average price paid to the farmers.
Senate
Before the amendment was defeated, 53 to 23, Reed locked the
in a debate that lasted nearly until night and ran the whole gamut of
estimateSenate oratory from political campaign speeches to discussions of
ous matters that more than once threatened to approach filibuster proportions.
The vote follows:
FOR THE AMENDMENT-23
Republicans-5
Capper
Borah
McMaster
Brookhart
Blaine
Democrats-113
Tydings
Reed, Mo.
Hayden
Fletcher
AshurSt
Wheeler
Sheppard
Locher
George
Black
Smith
Mayfield
Harris
Caraway
Steck
Neely
Hawes
Dill
AGAINST THE AMENDMENT-53
Republicans-33
Smoot
Phipps 111
McLean
Goff Ill
Blagham
Vandenberg
Pine rt
MeNarY
Gillett
Counns
Warren
Pa.
Reed.
Moses
Greene
Curtis
Robinson,In • Waterman
Norbeck
Hale
Cutting
Watson
Sackett
Norris
Johnson
Dale
Behalf
Nye
Keyes
Deneen
Shortridge
Oddie
Follette
La
Fess „„di
Democrats—l9
Wagner
Simmons
Kendrick
Edwards
Barkley
Walsh, Maas.
Stephens
McKellar
Gerry
Bayard
Waldijihtent.
Swanson
Overman
Glass
Broussard
Robinson. Ark.iThomas
Harrison
Bruce kw
•
Farmer-Labor—I
Shipstead
the amendment Senator Reed launched a
over
In the course of debate
candidacy for the
bitter political attack against Herbert Hoover and his
Republican Presidential nomination.
Voting
amendment.
Party lines were smashed when the vote came on the
them members
for the amendment were five Republicans, all but one of
Henrik Ship.
of the progressive bloc, and eighteen Democrats. Senator
Republicans
stead, the lone Fanner-Labor member, voted with firty-two
and Democrats to defeat it.
Detailing the rejection of graduated tax proposal when
the bill was before the Senate for final passage on May 21,
As it passed the Senate the bill carried the provision imthe Washington correspondent of the "Herald-Tribune"
posing the inheritance tax, an amendment to repeal It havstated:
ing been defeated on May 19 by a vote of 43 in opposition
Defeat of the graduated levy on small corporations came after it had
to the proposal to 30 in favor of it. In referring to the
once been made a part of the tax bill. It called for a regulated tax on
in Washington advices
corporations with taxable incomes of $16,000 or less, and had it remained Senate action on this, the "Times"
would have brought tax reductions up to $229,876,000, far beyond the May 19 stated:
fiscal zone established both by the Treasury and White House,
Vote Error Results in Tie.
Senator F. M. Simmons, Democrat, of North Carolina, sponsored an
amendment to restore the graduated levy, which the Senate Finance Committee had stricken from the bill when it came over from the House.
Senator W. H. McMaster, Republican, of South Dakota, bolted the majority
on the roll call and the amendment was declared adopted by a vote of
34 to 33.
The Senate had turned to the next item in the bill when Senator Gerald
P. Nye, Republican-Progressive, of North Dakota, called attention to the
fact that Senator Cole Blease, Democrat, of North Carolina, had voted for
the amendment when he had a general pair with Senator Lynn J. Frazier,
Republican-Progressive, of North Dakota, and under the rules should not
have cast his ballot.
Dawes Breaks Tie Amid Appktuee,
Mr. McMaster demanded another roll call. Mr. Blease explained that he
did not realize he was paired and did not vote. The result was a tie,
33 to 33.
Mr. Dawes leaped from his chair, banged his gavel down on the clerk's
record roll call, and, while the galleries burst into uproarious applause,
shouted:
"The vote is tie, 83 to 88, and the Chair votes 'No.'
Senator Walter F. George, Democrat, of Georgia, recalling Mr. Dawes's
memorable failure to break a tie vote on the confirmation of an important
Presidential appointment, arose and dryly felicitated the Vice-President
"on at least one opportunity to vote and to vote wrong."
Weary Senate Faces Boulder Dam.
The bill then was adopted on a vive voce vote.
•
•
•
Senator David A. Reed, Republican, Pennsylvania, calling attention to
the fact that under the defeated graduated levy plan smaller corporations
2% levy on the large corpo/
would pay only 7% tax in contrast to the 121
rations, declared many of the big co-operative enterprises with chain stores
would
have
taken
of it to cut their taxes.
advantage
country
the
all over
Check on Ticket &vipers Adopted.
Senator Robert F. Wagner, of New York, sponsored an amendment aimed
at ticket scalpers and it was adopted without debate. It provides a tax of
5% on charges up to 75c. above the established price of amusement tickets
and 50% on charges more than 75 cents above the established price.
Senator Simmons was whipped practically on a straight party vote on a
motion to have the $160,000,000 received annually as payment on war
tax
Although the Administration leaders recommended abolition of this
and many States insisted that it should be limited, the Finance Committee
committee.
the
declined to approve its repeal and the Senate supported
After almost thirteen hours in continuous session the Senate adjourned
vote an
to-night after fruitless efforts to reach an agreement for a time to
the tax bill.
arrangement
With a view to unravelling the snarl, arrangement after
upon. At 11
was suggested but none was advanced that could be agreed
an agreefor
begged
leader,
o'clock Senator Curtis, the Republican floor
tax bill in midment to stop proceedings until Monday and vete.on the
afternoon on that day.
further delay on the
But when Senator Johnson, of California, fearful of
M. Monday, the Senate
Boulder Dam bill, refused a vote later than 3 P.
found itself in the usual chaotic situation.
Senators, led
After the estate tax was disposed of insurgent Republican
a drive to
by Senator Shipstead, Farmer-Laborite, of Minnesota, started
force a tariff revision amendment to the tax bill.
agreement for
Near nightfall, Senator Smoot offered, unsuccessfully, an
Shipstead
a final vote on the bill on Monday. He proposed that Senator
upon Its comshould go ahead with his tariff speech to-night, and that
pletion the Senate should adjourn.
take the
He further suggested that Senator Reed, of Missouri, should
floor at 11 A. M. Monday to discuss a farm debenture plan he has offered
as an amendment. On Monday, beginning at 1 P. M., Mr. Smoot suggested,
no Senator should speak more than once or longer than ten minutes on the
bill, and not more than once or more than fifteen minutes on any amendment, the debate to continue Monday until the bill was completed.
Wrangle Blocks Action.
But there was a wrangle over the proposal and nothing definite was done.
It was evident that the insurgents wanted more opportunity to make their
tariff fight and did not think this would be possible under the Smoot
plan. After the flurry, Senator Shipstead resumed his speech in support
of an amendment to strike out thirty paragraphs of the Tariff act of 1922,
so as to readjust schedules on alcohol, oils, fats and other agricultural
products.
The Shipstead amendment was lost on a roll-call vote of 64 to LS. Senators Dill and Reed, of Missouri, also spoke for it. While Senator Shipstead was speaking Senator Johnson, of California, showed clearly that he
would not grant any agreement for a vote on the tax bill lilt jeopardized
the chances of the Boulder Dam project
This developed when at 6:40 P. M. Senator Heflin asked for a compact
to vote. Mr. Johnson said there would be no unanimous consent agree-
3234
FINANCIAL CHRONICLE
meat "for the present." Mr. Heflin accused Mr. Johnson of "threatening"
the Senate, but the Californian denied this, insisting, however, that Boulder
Dam -must be voted on at this session. He and Mr. Heflin agreed that
there was no necessity for Congress adjourning on June 2.
The Senators went to dinner while tariff revision speeches were being
made, and three quorum calls were necessary to bring them back to the
chamber.
By a viva voce vote an amendment offered by Senator Norbeck, of South
Dakota, levying a tax on call loans was defeated.
The first action on the estate tax came after a long debate in which
Senators Borah and Norris urged its retention. A roll-call vote of 43 to 30
defeated a repeal proposal made by Senator Bingham, of Connecticut.
Next Senator Bingham offered an amendment to cut the tax to a negligible figure and to abandon the 80% credit on account of State inheritance
tax payments. This was beaten, 62 to 18. An independent proposal by
Senator Reed, of Pennsylvania, to abolish the 80% credit was then defeated by a vote of 51 to 17.
The roll-call on the repeal proposal of Senator Bingham follows:
Detteen
Gillett
Golf
Hale
Metcalf
Broussard
Bruce
Caraway
Fletcher
Hawes
Heflin
Blaine
Borah
Brookhartj
Capper
Commis
Curtis 1
Cutting
Dale
Fess
Greene
Ashurst
Barkley
Sisal
Bran.=
Dill
Glass
I lards 1
Hayden
George
Gerry
FOR THE REPEAL-30.
Republicans—II.
Moses
Oddie
McLean
Reed. Pa.
Democrats—I9.
McKellar
Reed, Mo.
Overman
Simmons
Pittman
Slack
Ransdell
Stephens
AGAINST THE REPEAL-43.
Republicans-25.
Howell
Norris
Johnson
Nye
La Follette
Phipps
McMaster
Pine
Norbeck
Robinson. Ind.
Democrats-17.
King
Neely
Locher
Sheppard
Mayfield
Swanson
Warren
Waterman
Tydlngs
Tyson
Walsh, Mass.
Sackett
Schall
Smoot
Vandenberg
Watson
Thomas
Wagner
Walsh. Mont.
Farmer-Labor-1.
Selpstead.
Supporters of Bingham Move.
The only Senators voting for the Bingham plan were Goff, Hale, Howell,
McLean, Metcalf, Moses, Reed (Pa.), Warren and Waterman, Republicans,
and Black, Broussard, Fletcher, George, Hawes, Heflin, Reed (Mo.) and
Tydings.
Almost the same line-up supported Senator Reed's demand to do away
with the 80% credit.
The Treasury contends that the revenue from the Federal estate tax will
diminish to $7,000,000 in the fiscal year 1929. It was about $100,000,000
in 1927, but it is expected to fall much below that figure in 1928, because
the 80% State credits are now being taken advantage of.
Senator Reed, of Pennsylvania, said that if all the States adjusted their
taxes to take full opportunity of the 80% credit, the Government revenue
from that source would be about $25,000,000 this year.
[VoL. 126.
Existing Law Favored.
As to personal holding companies, the provisions of existing law are
favored by the Senate rather than the adoption as was accomplished in the
House of an artificial definition of such companies whereby to attempt to
strengthen the provisions of the present law relating to the evasion of
surtaxes through the formation of corporations and the accumulation of
income. This was held to penalize corporations which were properly
building up a surplus and to fail to recognize business necessities and
sound practices.
In the matter of consolidated returns there was some misunderstanding as
to the effect of the House provisions. The Senate agreed with the
Finance Committee that it is impracticable to attempt by legislation to
prescribe the various detailed and complicated rules necessary to meet the
many differing and complicated situations arising under this section of
the tax law. It was found necessary to delegate power to the Commissioner
of Internal Revenue to prescribe regulations legislative in character covering them. The section requires that all the corporations joining in the
filing of a consolidated return must consent to the regulations prescribed
prior to the date on which the return is filed.
Among the regulations which it is expected that the commissioner will
prescribe are: (1) the extent to which gain or loss shall be recognized upon
the sale by a member of the affiliated group of stock issued by any other
members of the affiliated group or upon the dissolution (whether partial
or complete) of a member of the group ; (2) the basis of property (including property included in an inventory) acquired, during the period of
affiliation, by a member of the affiliated group, including the basis of such
property after such period of affiliation; (3) the extent to which and the
manner in which net losses sustained by a corporation before it became a
member of the group shall be deducted in the consolidated return, and the
extent to which and the manner in which net losses sustained during the
period for which the consolidated return is filed shall be deducted in any
taxable year after the affiliation is terminated on the whole or in part;
(4) the extent to which and the manner in which gain or lees is to be
recognized, upon the withdrawal of one or more corporations from the
group, by reason of transactions occurring during the period of affiliation,
and (5) that the corporations filing the consolidated return must designate
one of their members as the agent for the group, in order that all notices
may be mailed to the agent, deficiencies collected, refunds made, interest
computed, and proceedings before the Board of Tax Appeals conducted
as though the agent were the taxpayer.
Senate Clarifies Law.
While the House made no change in existing law with respect to deductions for depreciation and depletion in the case of life estates and trusts,
the Senate amended and clarified the law governing the manlier in which
the deductions shall be apportioned as between life tenant and remainder.
man or trustee and beneficiary.
The Senate declined to accept House provisions for a new deduction allowable to the owner or long term lessee of a co-operative apartment covering
amounts representing their share of tile interest and taxes payable by the
corporation operating the apartment. Impracticability of administration
and the affording of an easy means for tax evasion were given as the causes
for the rejection of this proposal.
Opposition was raised, but ineffectively, to the proposal to allow as a
With regard to the insertion on May 18 of a provision for deduction expenses incurred by an individual taxpayer in contesting tax
liability.
publicity of tax returns, Associated Press advices from
Material changes are made in the present law provisions dealing with
Washington said:
instalment sales, the provisions as adopted by the Senate being substantially
With one-half of the membership voting, the Senate to-day amended the in the form recommended by the Finance Committee with the addition of
Tax Reduction bill to provide for opening all income tax returns to public the retroactive application of certain features of the section.
Greater protection has been afforded to Federal income from evasion of
Inspection hereafter, 27 to 19.
The action, which came as somewhat of a surprise, reversed the decision tax liability through the allocation of Income and deductions where a
individual or group operates two or more trades or businesses of the
single
of Congress two years ago to abolish the law enacted in 1924 which persame character. Such evasion is accomplished by the shifting of profits,
mitted publication of the taxes paid.
Senator Norris (R., Neb.) proposed the amendment and it went over at the making of fictitious sales, and ether methods frequently adopted for
the end of a long day of debate, with Democrats generally voting with the the purpose of "milking."
Some additional changes were made during the Senate debate on the basis
Western Republican independent bloc.
An attempt may be made before final passage of the bill to knock for determining gain or loss in sales by executors. Provisions for determining gain or loss on property acquired by a corporation were materially
eut the publicity amendment. A bare quorum was present for the vote.
clarified.
There is no provision in existing law prescribing rules for the determiIn advices from its Washington bureau the "Journal of
Commerce" stated that on May 21, when the bill was finally nation of the basis after the period of affiliation of property acquired by
corporation from another corporation with which it is affiliated during
the
disposed of, "no separate vote was taken on the so-called period of affiliation. The transactions are so
varied and complex that it
'peeping tam' amendment, under the terms of which, if kept was believed, impossible by statute to prescribe a definite rule of general
In the law, access would be had to income tax returns on the application and consequently the Senate believed it necessary to delegate to
the Commissioner of Internal Revenue power to prescribe regulations legissame basis as ether public documents. The understanding lative in the character under which the
basis will be determined for the
is, however" (said the paper quoted), "that this will be computation of gain or loss, and depletion and depreciation, laying down
in
the
section
the
general
standard
to guide the commissioner that interrejected on the conference and there are not enough votes
company transaction should be disregarded if gain or loos was not
In the Senate to override the action of the conferees." The recognized.
Employees of municipaily-owned public utilities corporations, such as
same paper, in its ace,ount of the Senate action May 21, had
water and electric light and gas plants owned by municipalities, shall be
the following to say in part:
exempt from taxes upon salaries and wages for such employment.
Foreign banks of issue are exempt from taxation as to income derived
Call Loan Tax) Rejected.
from their holdings of bankers' acceptances purchased in the United States.
The proposal sponsored by Senator Norbeck, South Dakota, to place on
From the "Times" Washington dispatch May 21 we take
call loans a tax of Sc. per $100 was rejected 45 to 18, those favoring the
amendment being Senators Blaine, Wisconsin; Black, Alabama; Brook. the following:
hart, Iowa; Coueens, Michigan; Cutting, New Mexico; Dill, Washington;
The Senate approved a $25,000,000 cut in surtaxes on individual incomes
Harris, Georgia; Howell, Nebraska; Johnson, California; La Follette, Wisconsin; McMaster, South Dakota; Mayfield, Texas; Neely, West Virginia; between $20,000 and $80,000. The House did not change the surtax rates
the present laws.
of
Norris, Nebraska; Nye, North Dakota; Sheppard, Texas; Shipstead, MinneThe present 10% tax on club dues, cut in half by the House, was
sota; Thomas, Oklahoma. The amendment was aimed at the rising volume
retained
in full by the Senate. Under the house bill theater tickets costing $1
of brokers' loans.
were
exempted
from
tax,
an
increase
of
25c.
above
the
present
The earned income provisions were extended to cover incomes of up to
exemption. The
$20,000. Exemption also was provided in the case of professional men for Senate raised the exemption to $3. Senate and House agreed to impose
to 25% tax on prizefight tickets coating $5 and more.
expenses incurred in attending conventions of professional organizations.
House acquiescence will be necessary in a Senate amendment to put an
•
•
•
income tax upon the salary of the President of the United States, now
The Senate adhered most remarkably to the recommendations made by
relieved from this taxation by a Supreme Court opinion. Doubt of the
the Finance Committee with respect to the administrative provision of the
constitutionality of the plan to tax the President is widely expressed.
bill. Briefly, the outstanding features among these are as follows:
The Senate refused to agree with the House in cutting in half the taxes
Under the present law if a corporation pays a dividend out of earnings on capital stock
transfers and produce sales. It declined to snake reductions
or 'unfits accumulated before March 1 1913, or out of increase in value of in the corporation
tax or surtaxes retroactive.
property accrued before that date the dividend in either case is not taxable
It exempted from tax traveling expenses of physicians attending proto the shareholder but the amount of the dividend reduces the basis of the fessional
conventions.
stock in his hands. The House bill made the dividend subject to surtax
Comparison of Bills.
but the haslet of the stock is not reduced. The Senate voted to continue
the present law in force, and that probably will prevail when the measure
A eomparison of the House and Senate bills is given in the following
goes to conference.
table:
FINANCIAL CHRONICLE
MAY 26 1928.]
REDUCTIONS.
ItemsCorporation tax
Corporation exemption
Graduate corporation tax
Surtax readjustment
Automobile tax
Earned income credit
Admission tax
Club dues tax
Club dues exemption
Capital stock tax
Produce sales tax
Cereal beverage tax
Wine tax
Foreign-built yachts
House SUL
2164,600,000
12,000,000
24,000.000
Senate SW.
282,000,000
12,000,000
66,000,000
25,000,000
66.000,000
4,500,000
17,000,000
8,000,000
5.000,000
1,000,060
8,800,000
3,000,000
185,000
930,000
Total reductions
185,000
930.000
10,000
$292,515,000
$208,825,000
House MIL
52,000.000
750,000
30.000
Senate MIL
82,000,000
750,000
INCREASES.
3235
Such a program, supported by a strong protective tariff on farm products, is the best method of effecting a permanent cure of existing agricultural ills. Such a program is in accordance with the American tradition
and the American ideal of reliance on and maintenance of private initiative
and individual responsibility, and the duty of the Govesnment is discharged when it has provided conditions under which the individualican
achieve success.
0111
I am still hopeful that legislation along the lines suggested in my jags
message, with which many of the provisions in this bill are in harmony.
may be enacted, but this bill embodies substantially all of the obJectionahle
features which I said in that message to the Congress I could not endorse.
As to the question of seeking to pass the bill over the
President's veto, a Washington dispatch May 24 to the
"Times" said:
A survey of the situation relating to the Farm Relief bill, made to-night,
seemed to indicate that a majority of the Senate Committee on Agriculture
favor bringing the measure up again for a test vote on the veto. Senator
McNary, one of the authors of the bill, is Chairman of this committee.
Totalincreases
$2.750,000 to which the bill was turned over when it was returned unsigned by the
22,780,000
Total net reductions
2205,875,000 President. To-night Senator McNary was said to be in a hunter to have
$289,735.000
the measure reported favorably to the Senate to-morrow by the OcanSurtax Rates Set by Senate.
mittee and a count of noses taken.
The surtax rates and classes made in the Senate bill, together with those
The question of what the next step should be was discussed at a futile
at present, are as follows:
though heated session of the Committee. The insistence of farm organizaNet Income
Surtax Rate
Net Income,
tions for a showdown before the adjournment of Congress was brought
Senate Class.
Pres. Class.
Per Cent,
out, and whether the bill could be passed over the veto was debated.
518,000-120,000
$18,000-$21,000
4
21,000- 24.000
20,000- 22,000 Apparently this did not seem assured. The bill was adopted by the
5
24,000- 28,000
22,000- 24,000 Senate by a vote of 53 to 23,showing at that time the two-thirds necessary
8
28,000- 32,000
24,000- 28.000 to override a veto.
7
32,000- 36,000
28,000- 32,000
8
Doubt of Passage in House.
36,000- 40,000
9
32,000- 36,000
But since then Senators Jones and Gooding, who supported the bill.
40,000- 46,000
36.000- 40,000
10
46,000- 52,000
40,000- 44,000 have been taken ill and are in a hospital, reducing the backers of the
11
52.000- 58,000
44.000- 48,000
12
lines
48,000- 52,000 measure to 51. This would be just enough to override a veto if the
13
58,000- 64,000
14
52,000- 56,000 held firm. But Administration Republicans were declaring to-night that
15
56,000- 60,000 If the veto became the issue, Senators who had voted for the bill original:,
64,000- 70,000
60,000- 64,000 would support the.President.
16
64,000- 70,000
17
There also is doubt that the bill could be passed over the veto in the
70,000- 80,000
18
70,000- 80,000
19
80,000-100,000 House, the consensus of opinion being that it would lose in such a test
Over 880,000
Over 2100,000 In that body.
20
Non-resident stockholders' tax
Prise-light admissions
Fereign-buiit yachts
McNary-Haugen Farm Relief Bill Vetoed by President
Coolidge.
President Coolidge registered his disapproval of the
McNary-Haugen farm relief bill, in no uncertain terms,
in a veto message sent to Congress on May 23, and given in
full elsewhere in this issue of our paper. The bill which the
President vetoed went to conference following the adoption
by the House on May 3 of its measure, differing somewhat
from the bill passed by the Senate April 11. These two
bills were referred to in our issues of April 14, page 2256 and
May 12, page 2912. An agreement on the final form of the
bill was reached by the conferees of the House and Senate
on May 12; on May 14 the conference report was adopted
by the House by a vote of 205 to 117. The Senate accepted
the conference report without a roll call on May 16. In
stating that in composing the differences the House legislation prevailed over the Senate with respect to the major
points in dispute, the Washington correspondent of the
"Journal of Commerce" on May 11 noted:
Fruits and vegetables, covered in the House bill but rejected by the
Senate, remain subject to the loan provisions, although not to the equalization fee provisions of the measure. Loans to co-operative marketing associations to be used for organization purposes are retained, although the
total is reduced from $2,000,000 to $1,000,000. The House provisions
for the creation of commodity advisory councils are retained with an
amendment that nominations for members can be made only from States
which produce 3% or more of a particular commodity.
It must be borne in mind that the main provision of the bill-the equalization fee principle-was not in dispute as between the Senate and House
But it is to this that the President seems unalterably opposed.
In his veto message President Coolidge said:
A detailed analysis of all of the objections to the measure would involve
a document of truly formidable proportions. However, its major weaknesses and perils may be summarized under six headings:
I. Its attempted price-fixing fallacy.
II. The tax characterization of the equalization fee.
III. The widespread bureaucracy which it would set up.
IV. Its encouragement to profiteering and wasteful distribution by
middlemen.
V. Its stimulation of overproduction.
VI. Its aid to our foreign agricultural competitors.
These topics by no means exhaust the list offallacies, and,indeed,dangerous aspects of the bill, but they afford ample ground for its emphatic rejection.
The President in his message also stated in part:
•
Senate bill 3,555, called the Surplus Control Act, is in some respects an
Improvement over Senate bill 4,808 of the last Congress. It includes
several provisions, which, if unencumbered by objectionable features, would
form a basis for a measure that should do much to develop stronger business
organizations in agriculture. But the present bill contains not only the
so-called equalization fee and other features of the old measure prejudicial,
in my opinion, to sound public policy and to agriculture, but also new and
highly objectionable provisions. In its entirety it is little less undesirable
than the earlier measure. The bill still is unconstitutional. This position
Is supported by the opinion of the Attorney-General, which is hereto attached. [This opinion we give in full in another item-Ed.) . .
I have believed at all times that the only sound basis for further Federal
Government action in behalf of agriculture would be to encourage its adequate organization to assist in building up marketing agencies and facilities
in the control of the farmers themselves. I want to see them undertake,
under their own management, the marketing of their products under such
conditions as will enable them to bring about greater stability in prices and
less waste in marketing, but entirely within unalterable economic laws.
Call by Gov. McMullen of Nebraska for Farmers to March
on Kansas City Republican Convention Following
Presidential Veto of McNary-Haugen Bill.
Gov. Adam McMullen, of Nebraska, a delegate to the
Republican National Convention to be held next month at
Kansas City, issued a call at Omaha, on May 23, for 100,000 farmers to march on the Convention and "demand
their rights." The call came after President Coolidge
vetoed on May 23 the McNary-Haugen farm relief bill.
In its account of Gov. McMullen's action, an Omaha dispatch to the New York "Times" stated':
In a statement he declared no farm relief could be obtained from the
present "anti-agricultural" Administration or from any candidate like
Herbert Hoover. Governor McMullen is strongly opposed to Hoover as
the party candidate.
"The time has come for action by the farmers themselves," the statement reads. "They can expect no effective farm legislation from the
present Administration or from any candidate like Hooveb, whose only
claim for recognition and whose only hope of securing the Republican
nomination is based on his blind adherence to the anti-agricultural attitude of the Chief Executive.
"Let 100,000 farmers confront that convention and as American freemen demand economic justice.
"Let 100,000 farmers face their delegates and challenge their opposition.
Urges "Living Petition."
"Let 100,000 farmers march through the streets of the city that has
grown into a great industrial center through the toil of men add women
who have struggled against odds to wrest a bare existence from the soil.
"Farmers, arise as crusaderd of old. Defend your families, property
and freedom. Go to Kansas City on June 12. Do dot ask your neighbors to go instead. Go yourself and meet your neighbors there. Form
a living petition of 100,000 smile and demand your rights."
An army of farmers at the national conventions, and particularly the
Republican national convention, represents the only possibility for farm
relief, Governor McMullen declared, asserting "the people sad not
classes" are representing them.
Henry A. Wallace of "Wallace's Farmer" Secs Danger to
Republican Party in Veto of McNary-Haugen Fairs
Bill-Message to Iowans.
Among those who fear for the existence of the Republican Party because of the Presidential veto of the NeNary-Haugen bill, is Henry A. Wallace, Editor of
"Wallace's Farmer." A Des Moines dispatch May 24 to
the "Herald-Tribune" noting the fears of Mr. Wallace,
says:
"We have had enough of glittering generalities relating to agriculture in past platforms and it now rests with the Republicans ef the MidWest whether they shall attempt te wrest control of their party from
the East or allow it to succumb." The foregoing is the gist of a message
issued by Iowans to-night by Ben Turner, of Corning, leading Iowa
Republican delegate to the National Convention and the party's keynote
speaker two years ago.
In his message Mr. Turner takes the same attitude toward Eastern industrialistic control of the administration as has already been expressed
here by Milo Reno, President of the Iowa Farmers Union; Charles
Hearst, President of the Iowa Farm Bureau; Henry A. Wallace, Editor
of "Wallace's Farmer," and other leaders.
Mr. Wallace, son of the former Secretary of Agriculture and heir to
a staunch sympathy for the Iowa farmer, went even farther than Mr.
Turner, predicting that the Republican party, which had its origin in
the Middle West, might find its death here also.
3236
FINANCIAL CHRONICLE
[VoL. 126.
provide farm relief by lessening the cares of our greatest industry, it not
only fails to accomplish that purpose, but actually heaps even higher its
burdens of political control, of distribution costs and of foreign competition.
It embodies a formidable array of perils for agriculture which are all the
more menacing because of their being obscured in a maze of ponderously
futile bureaucratic paraphernalia.
Weaknesses and Perils of Measure.
Mid-West Agricultural Leaders Say Veto of McNaryin
fact,
In
spite
of the inclusion in this measure of some constructive
Coolidge
President
Haugen Bill Makes Renomination of
steps proposed by the Administration, it renews most of the more vicious
Unthinkable.
devices which appeared In the bill that was vetoed last year. This document Is much altered from its previous form, but its substance, particuAccording to Chicago advices to the New York "Times" larly
as to its evident ultimate effect of tending to delude the farmer with
the renomination of President Coolidge is unthinkable a fantastic premise of unworkable Governmental price regulation, Is still
as ever to the spirit of our institutions, both political and
repugnant
as
now that he has vetoed the McNary-Haugen relief meascommercial.
ure, in the opinion of farm leaders and spokesmen for
A detailed analysis of all of the objections to the measure would involve
agriculture interests of the Middle West, who agreed a document of truly formidable proportions. However, its major weakand perils may be summarized under six headings:
nesses
May 24 that the only way to prevent a break in the ranks
(1) Its attempted price-fixing fallacy.
camPresidential
of the Republican Party during the
(2) The tax characteristics of the equalization fee.
(3) The widespread bureaucracy which it would set up.
paign would be the nomination of either former Governor
(4) Its encouragement to profiteering and wasteful distribution by
Lowden or Vice-President Dawes. The dispatch also said: middlemen.
their
expressions
in
one
were
Mid-West agriculture representatives
(5) Its stimulation of overproduction.
that Secretary of Commerce Hoover was not acceptable to the Western
(6) Its aid to our foreign agricultural competitors.
agriculturists as a candidate.
These topics by no means exhaust the list of fallacious and, indeed,
"It is my belief that President Coolidge vetoed the McNary-Haugen dangerous aspects of the bill, but they afford ample ground for its emphatic
Taylor,
bill because Mr. Hoover wanted it vetoed," said Dr. Henry C.
rejection.
agricultural economist of the Institute of Land Economics and Public
Price Fixing.
Utilities, associated with Northwestern University. Dr. Taylor was
(1) Price fixing—This measure is as cruelly deceptive in Its disguise as
First Chief of the Bureau of Agricultural Economics of the Department governmental price-fixing legislation and involves quite as unmistakably
of Agriculture in the Administration of President Harding.
the impossible scheme of attempted governmental control of buying and
Says Hoover Set Policy.
selling of agricultural products through political agencies as any of the other
"The corn belt farmers will be definitely against Mr. Hoover for so-called surplus control bills. intact,in certain respects it is much broader
President," Dr. Taylor declared. "It is also my belief that the Secre- and more flagrant in Its scope. The heights to which price lifting might be
tary of Commerce has determined the President's policy with regard to promised are freed from the limitations fixed In the previous measure.
The bill carefully avoids any direct allusion to such price-fixing functions,
the McNary-Haugen bill ever since the Fall of 1923. If he is nominated
the National Republican Committee knows now that he cannot be elected. but there can be no doubt about its intentions and authorizations to the
"They may have thought he could win prior to the discovery that he Federal Farm Board in this respect. There is apparently no change in the
was using both ends against the middle when he attempted to use the import of the bill in the resolution to impose upon the farmer and upon the
negroes of the South to get the nomination, with the expectation of consumers of farm produce a regime of futile, delusive experiments with
using the white Democrats of the South to secure his election in the price fixing, with indirect governmental buying and selling, and with a
event that Governor Smith of New York is nominated by the Democrats. nation-wide system of regulatory Pacing, intolerable espionage, and tax
"If either former Governor Lowden or Vice-President Dawes is nomi- collection oda vast scale.
These provisions would disappoint the farmer by naively implying that
nated the Middle West farmers will be solidly Republican, in my opinion,
and without them the party cannot win against a Democrat pledged to the law of supply and demand can thus be legislatively distorted in his
favor. Economic history is filled with the evidences of the ghastly futility
give the farmers economic equality with industry and labor.
ofsuch attempts. Fiat prices match the folly offiat money.
Sees Peasant Status for Farmer.
The Board would be compelled to arrive in some way at the premium
"There have been those who feared that the national agricultural policy on the domestic price which would be demanded from the consumer, and
C.
Henry
of
which has dominated the Administration since the death
this figure would have to be fixed in the contracts which it would make
Wallace might, if continued, ultimately reduce the farmers to peasants. with the millers, packers, canners, spinners, and other processors.
If the farmers of the corn belt will vote for Hoover they are peasants
Such prices and other terms fixed in the contracts would be used by the
already.
Board te calculate the losses upon which it will base the size of the equaliza"If Hoover is nominated and Governor Al Smith comes out definitely tion fee. This procedure is the very essence of price fixing, no matter how
for farm relief legislation it is my opinion that a new national Demo- cumbersome and crudely camouflaged it may be. By throwing the very large
cratic Party with Tammany Hall sloughed off will be formed, combining resources of the Government into this operation, the present bill gives the
the interests common to the South and the agricultural West."
widest latitude for the most vicious temptations adherent in autocratic
In the language used by Sam H. Thompson, President of the Ameri- authority in complete command of vast industries and trades. In previous
can Farm Bureau Federation, to-day to denounce President Coolidge's bills definite yardsticks have been determined by which prices were to
veto of the McNary-Haugen bill is the veiled threat that "unless Con- be established by the Government. They are omitted from this bill, which
gress promptly passes the bill over the President's veto and redeems the thereby leaves almost no restraint whatever upon the discretion of the
promises to the farmers of the country by the Republican Party in its Board in this respect. The present measure, therefore, has even less merit
platform of 1924 the effort to secure economic justice for agriculture will than its predecessors in this regard, since it carries no limitation as to the
be continued with increased energy" in the Presidential campaign.
extent of price inflation which it can undertake.
Mr. Thompson charged the President with being opposed to bowing
Equalization Fee a Sales Tax.
to the will of the people as expressed through their Representatives and
(2) The equalization fee, which is the kernel of this legislation, is a sales
Senators in Congress.
entire community. It is in no sense a mere contribution to be
Prospects for a political realignment linking the economic interests tax upon the producers
themselves, as has been represented by supporters
of the agricultural West with those of the South were pointed out by made by the
measure. It can be assessed upon the commodities in transit to the
Earl C. Smith, President of the Illinois Agricultural Association, who of the
burdens can often unmistakably be passed on to him.
its
and
consumer
charged that the Republican leaders of the East have placed the Middle
Furthermore, such a procedure would certainly involve an extraorWest Republican farmers against themselves in the juggle of interests
dinary relinquishment of the taxing power on the part of Congress, because
in former national political campaigns.
the tax would not only be levied without recourse to legislative authority,
but its proceeds would be expended entirely without the usual safeguards
control of appropriations. This would be a most dangerous
Message of President Coolidge to Congress Vetoing of Congressional
nullification of one of the essential checks and balances which lie at the
McNary-Haugen Farm Bill.
very foundation of our Government.
Incidentally, this taxation, or fee, would not be for purposes of revReference is made in another item in our issue of to-day
enue in the accepted sense, but would simply yield a subsidy for the
to the message sent to Congress on May 23 by President special
benefit of particular groups of processors and exporters. It would
Coolidge vetoing the McNary-Haugen Farm Relief Bill. be a consumption, or sales tax, on the vital necessities of life, regulated
not by the ability of the people to pay, but only by the requirements
The text of the message follows:
Senate Bill 3555, called the Surplus Control Act, is in some respects an and export losses of various trading intermediaries. It would be difficult
improvement over Senate Bill 4808 of the last Congress. It includes indeed to conceive of a more flagrant case of the employment of all of the
several provisions, which, if unencumbered by objectionable features, coercive powers of the Government for the profit of a small number of
would form a basis for a measure that should do much to develop stronger specially privileged groups.
It has been alleged that these operations would be inaugurated only
business organizations in agriculture. But the present bill contains not
only the so-called equalization fee and other features of the old measure as a last resort, but this would be scanty Insurance Indeed, since no board
Prejudicial, in my opinion, to sound public policy and to agriculture, but would be able to resist the pressure of the polltcal forces which could
also new and highly objectionable provisions. In its entirety it is little be mustered in behalf of every staple commodity to demand that the
lees undesirable than the earlier measure. The bill still is unconstitutional. Government should undertake the responsibility of attempting to legislate
This position is supported by the opinion of the Attorney General, which its prices above those fixed in the normal operations of the law of supply
and demand.
Is hereto attached.
Foresees Bureaucratic Tyranny.
In its essentials, the objectionable plan proposed here is the stimulation
of the price of agricultural commodities and products thereof by artifically
(3). Widespread Bureaucracy.—A bureaucratic tyranny of unprececontrolling the surpluses so that there will be an apparent scarcity on the dented proportions would be let down upon the backs of the farm industry
market. This is to be done by means of a board having supposedly ade- and its distributers throughout the nation in connection with the enforcequote powers and adequate funds to accomplish such purpose through ment of this measure. Thousands of contracts involving scores of difvarious agencies, governmental and private.
ferent grades, quantities and varieties of products would have to be signed
The surpluses of the different selected commodities so accumulated by by the board with the 4,400 millers, the 1,200 meat-packing plants, the
the board are then to be sold by export and otherwise, directly, or through 3.000 or more cotton and woolen mills, and the 2,700 canners. If this
such agencies, at whatever lose is necessary In making the disposition. bill had been in operation in 1925, it would have involved collections
The fund to pay the losses and other costs, while at first furnished by the upon an aggregate of ever 16,000.000,000 units of wheat corn and cotton.
The bill undertakes to provide insurance against loss, but presumably
Government, is ultimately to be replaced and thereafter replenished from
time to time by means of a tax or fee charged against the product. The only against reasonable and unavoidable loss. Just what this might be
theory is that the enhanced price of the commodity would enable the would involve Judgment on the part of Government employees upon tens
of thousands of transactions running into billions of dollars.
producers to pay the equalization fee and still reap a profit.
been a
This is bureaucracy gone mad. Co-operative associations, flour mills,
The recurring problem of surpluses in farm products has long
subJect of deep concern to the entire nation, and any economically sound, packing plants and grain elevators will cease to be private abd become
workable solution of it would command not only the approval but the public agencies. If there is any conclusion that we can announce as final
profound gratitude of our people. The present measure, however, falls with regard to governmental business operations, particularly after the
far short of that most desirable objective; indeed, although it purports to bitter and excessively costly war-time experienceslwith such enterprises.
"The issue is clearly joined," Mr. Wallace declared. "A desperate
effort will be made at Kansas City to save the Republican party. If the
present Administration is continued in power it will be the beginning
of the end."
• Mr. Turner in his statement urged the nomination of Frank 0. Lowden.
FINANCIAL CHRONICLE
MAY 26 1928.]
it is that we can not maintain a bureaucracy ofsuch vast proportions engaged
in buying and sellnig without constant danger of corruption, mismanagement and prodigious tax burdens.
No private agency of so gigantic and complex a character attempting to
juggle with profound economic principles in such fashion could survive under
such circumstances, and the chances for a governmental trading organization would be even less. Swarms of inspectors, auditors, disburses,
accountants and regulatory officers would be let loose throughout the land
to enforce the terms of these contracts and to curb the inevitable attempts
at evasion of the equalization fee. This plague of petty officialdom would
set up an intolerable tyranny over the daily lives and operations of farmers
and of every individual and firm engaged in the distribution of farm
products, intruding into every detail of their affairs, setting up thousands
of prohibitory restrictions and obnoxious inspections.
Such autocratic domination over our major industry, its dependent
trades and the everyday activities of hundreds of thousands of our citizens,
would indeed be profoundly repugnant to every instinct of our instutitions.
It would undermine individual initiative place a premium upon evasion
and dishonesty and poison the very well-springs of our national spirit of
providing abundant rewards for thrift and for open competitive effort.
The arbitrary powers in the hands of the twelve members of the board
are almost incredible. But even more extraordinary would be the veto
power over the board which this measure places in the hands of the com• modity Advisory Councils.
Acting with the board, these men could throw the entire machinery of
the Government into an attempt to raise or lower domestic prices at will.
Even though such efforts would ultimately be doomed to certain failure,
these men would meanwhile, during the course of costly experiment, hold
In their hands the fate of vast industries using farm products, employing
millions of persons, and of great cooperatives with thousands of farmer
members.
They could disrupt the settled channels Of trade and commerce; they
could alter at will the cost of living, influence wage levels in all lines of
industry in every part of the country. The mere enumeration of such
powers is the complete answer to the proposal that they be granted.
Encouragement to Profiteering.
(4). Encouragement to profiteering and wasteful distribution by middlemen. As was pointed out in the veto last year, it seems almost incredible
that the farmers of this country are being offered this scheme of legislative
relief in which the only persons who are guaranteed to benefit are the exporters, packers, millers, canners, spinners, and other processors. Their
profits are definitely assured. They have, in other words, no particular
incentive toward careful operation, since each of them holding a contract,
no matter how unscrupulous. wasteful, or Inefficient his operations may
have been, would be fully reimbursed for all of his losses.
This would be bound to encourage wholesale profiteering at the expense
of the farmer and of the consumer. Every one of these processors could
charge what he chose to his domestic trade and recoup the loss incurred
on any one of his products thus made unsalable at home through excessive
prices by dumping it at reduced rates In foreign markets. With such a
complete guaranty of profit, these concerns would be entirely without
restraint or limitation as to profiteering and as to slovenly and wasteful
processing and selling operations.
Surely there could be no more direct means of destroying the very germ
of American commercial genius, which is so frankly envied by our foreign
rivals—the tireless search for better and more efficient business methods,
the competitive zeal for superior service and for adequate returns through
large sales of better merchandise at lower prices.
The packers could be commanded by the board to buy hogs enough to
create a near shortage at home and then raise the prices to a fixed level.
The unsalable surplus would then be dumped abroad at a loss, which would
thereupon be made good out of the pockets of all taxpayers, including the
farmers.
The operations would involve an impenetrable maze of contracts between
the board and hundreds of packers and provisioners. The result would
be a bewildering snarl of entangled accounting problems, because packing
houses buy one kind of product and sell a wide range of highly differentiated
specialties. To "equalize" the losses on these would indeed be a task of
overwhelming difficulty.
These objections were raised against the previous measure, and apparently an attempt has been made to meet them by broadening the discretionary powers of the board so as to escape the necessity of describing its
functions and limiting its authority. The result, however, has been entirely the reverse from that which was intended. The board is endowed
with vast powers over our basic industry, but unlike every other agency in
the Government it would not be limited by Congressional control over Its
appropriations, since it would have within itself the power to raise funds
without limit by means of the compulsory equalization fee.
American workman to the latter's competitor in the low wage scale countries
across the seas, whose potential buying power and standards of living even
at best are far below those of this country.
This is indeed an extraordinary process of economic reasoning, if such it
could be called. Certainly it is a flagrant case of direct insidious attack
upon our whole agricultural and industrial strength.
By the inevitable stimulation of production, the bill can only mean
an increase of exportable surplus to be dumped in the world market. This
in turn will bring about a constantly decreasing world price, which will soon
reach so low a figure that a wholesale curtailment of production in this
country, with its attendant demoralization and heavy losses, would be
certain. Where is the advantage of dragging our farmers into such folly?
Furthermore, as the Board undertakes to dump the steadily mounting surplus into foreign countries at the low cost figures, it will come into
direct conflict with the dumping and similar trade laws of many foreign
lands which are interested in the maintenance of their own agricultural Industries. We might, therefore, expect immediately a series of drastic retallatory discriminations on the part of these consumer countries. This will
drive our surplus into narrower market channels and force even further price
reductions, with consequent increases in the burdens of the equalization tax.
Lastly, and most important. In connection with this aspect of the bill
as an aid to our foreign competitors, the measure will inevitably devastate
many of our important farm areas. For instance, the Board is expected to
obtain higher prices for the American farmer for corn by removing the
surplus from the home market and dumping it over our borders at a lower
level of prices.
In other words, the hog grower in Ontario, Canada. may buy American
corn at a very much lower level than the hog grower in the State of Ohio.
Both being situated equally as to the European market for their pork
products, we shall see immediately the migration of the Ohio hog industries
across the border into Canada with consequent losses to our pork industry
by this Canadian competition.
Likewise the dumping of cheaper American feeds for Dutch and Scandinavian producers of dairy products further subsidizes them in direct competition with the American industry. In other words, the framers of this
measure naively submit a proposal to save the American live stock grower
and dairyman by supplying his overseas rivals with abundant feedstuffs
at reduced rates. It would be difficult indeed to conceive of a more preposterous economic and commercial fallacy.
Handicaps to Cotton Manufacturing Industry.
To take another illustration, our cotton-manufacturing industry, which
now has some 18,400,000 spindles in the cotton-growing States and
16,400,000 in the New England States, has been in a precarious condition
Stimulation of Overproduction.
(5). Stimulation of Overproduction.—The bills runs counter to an
economic law as well settled as the law of gravitation. Increased prices
decrease consumption; they also increase production. These two conditions
are the very ones that spell disaster to the whole program.
The vaguely drawn clause in the measure to meet this obvious danger
merely amounts to moral suasion and,as a last resort, the withdrawal of the
equalization lee. Thus. If 90% of the growers of a given commodity heed
the admonitions of the Board and refrain from production, they will, never
the less, be punished because of the evasions of the remaining 10% who
have ignored the Board's requests. In other words, no farmer will be
safe in directing his planting upon his individual judgment, for should
the result be a stimulation of an increased yield, the Board will be likely
to withdraw the support which encouraged the surpluses and allow the
prices to collapse under the weight of that artificially created excess. The
annals of the industrial and agricultural world are replete with the catastrophes that have come in the wak of such attempted distortions of one of the
most fundamental principles of commercial relations.
Aids Foreign Competitors.
(6). Aid to Our Foreign Agricultural Competitors.—This measure
continues, as did its predecessor, to give substantial aid to the foreign
competitors of American agriculture and industry. It continues the amazing
proposal to supply foreign workers with cheaper food than those of the
United States, and this at the expense of the American farm Industry.
thereby encouraging both theforeign peasant, whose produce is not burdened
with the costs of any equalization fees, and also affording through reduced
food prices the means of cutting the wage rates paid by foreign manufacturers.
The latter step would promptly impair the prosperity *f our manufactur
ng population, which is by far the leading and most profitable market for
our farm produce. It is nonsense to say that our farmers are not interested
in such a development, which can only result in unemployment and in consequent decreases in food consumption in the great industrial districts. It is
surely Poor business to transfer the farmer's market from an employed
3237
for several years.
Further handicaps imposed upon it by this bill might spell its ruin and
the consequent serious crippling of our entire cotton-growing belt. Under
obtain
this bill it would be quite conceivable that foreign mills could
American cotton for prices substantially less than those paid by domestic
of the
spite
in
country
mills. Foreign mills could ship cotton goods to this
tariff, since the equalization fee in this measure is not applied to cotton
fabrics.
Furthermore, foreign mills would undoubtedly capture our existing
export markets for the 600,000,000 square yards which we ship abroad
annually, valued at over 575,000,000. The very serious hardships thus
inflicted upon nearly 500.000 wage earners in the cotton manufacturing
industries and the consequent impairment of their consumption of farm
produce, as well as of the raw cotton in the mills, would be indeed a tragic.
If not disastrous, episode.
All of this assumes that the foreign countries will permit the carrying
out of the plan, but many of those countries are interested in the production
of their own agricultural industries and will not hesitate to impose higher
tariff duties or anti-dumping laws to prevent such undue depression of
their own markets.
Furthermore,they would be inclined to institute discriminatory measures
In favor of our competitors by way of retaliation. The markets for our
surpluses would thus be limited, if not fatally obstructed. To stake the
future prosperity of American agriculture upon the course of action to be
taken by foreign governments acting under such hostile impulses is altogether too hazardous.
Many of the objections urged in my former veto message apply with
equal force to the present bill. No good purpose would be served, however.
by repeating them in detail.
The bill now under consideration also includes objectionable features
not found in the one of the last session.
Insuring Co-operative Associations Against Price Decline.
The present measure would authorize the board to insure co-operative
well as
associations against price decline and require the non-members as
the members to bear the cost under the so-called "non-premium insurance.'
but
All producers would be compelled not only to bear the risk of the few,
also to insure them against the consequences of bad management.
in
far
gone
has
We all believe in sound co-operation; the Government
additional steps for its
recent years to aid it, and I have recommended
founded on the favoritism
encouragement; but no system of co-operation
insurance" could be of
contemplated under the name of "non-premium
lasting benefit to agricultural co-operation.
Equalisation Fee a Tariff.
collected on any agriThis bill also provides that the equalization fee,
States, shall, In addition, be
cultural commodity produced in the United
provision would emcollected on importations of that commodity. This
power the board to do the following:
for the equalization fee on imports
(1) Regulate foreign commerce,
delegation of legislative
would be in fact a tariff. This surely would be a
board's actions in
power, since no logical rule is prescribed to govern the
making this addition to import duties.
only to the full amount
(2) Raise the domestic price to the consumer, not
the board might
permitted by the tariff, but as far above that amount as
clearly
deem proper and expedient. This effect on domestic prices was
Speaking
House.
the
of
on
Agriculture
contemplated by the Committee
of the effect of this provision on wheat, the committee said:
"Therefore, the maximum price for all wheat, whether of domestic or
and the
foreign origin, would approximate a level that included the tariff
equalization fee."
the Tariff act that tariff rates shall be based
(3) Nullify the provision of
that provision
on differences in cost of production here and abroad,so far as
relates to agricultural products.
Sees No Test of His Plan.
that the present bill
An effort has been made to create the impression
for the control of agriis an important concession to my recommendations
the loan provision Is what
cultural surplus. It has been emphasized that
and that loans to co-operative
this Administration has recommended
one of two alternaconstitute
surplus
associations for the control of crop
tives with the equalization fee the other alternative.
3238
FINANCIAL CHRONICLE
It is said that the first alternative will be tried first and that the equalization fee will be resorted to only if the loan provision should prove inadequate. It becomes apparent, however, upon careful study of the present
bill and of the supporting committee reports, that these alleged alternatives
can afford no real test of any plan of the kind I have recommended.
The board Is authorized to invoke the trade agreement and the equalization fee only upon finding three facts:
(1) "That there is or may during the ensuing year a seasonal or year's
total surplus * * •in excess of the requirements for orderly marketing or in
excess of the domestic requirements for the commodity";
(2) "That the nature of the commodity—its durability, preservability,
methods of marketing, &c.—adapts it to the operations contemplated,"and,
(3) That the co-operative associations are unable or unwilling to handle
the surplus under the loan provision—that is, that the "first alternative"
is inadequate.
These conditions are always present. It is provided (Sec. 8) that the
board shall inquire into these facts upon request of the advisory councils,
or organization of producers, or upon its own motion. The board could
not escape making the three "findings" and would therefore be obliged to
enter into trade agreements and to use the equalization fee from the beginning.
A surplus in excess of orderly marketing or (the word "and" is not used)
in excess of domestic requirements Is always present in many agricultural
commodities. The exportation of any part of the domestic output proves
the existence of such a surplus.
The second "finding" is equally inescapable because it is based on everpresent and obvious facts. Numerous commodities—cotton, wheat, corn,
rice, tobacco, processed meats, and other products—always have the
durability, preservability, &c., that render them adaptable to the opertions contemplated in this bill.
The third "finding" is also assured in advance because it is certain that
the cooperative associations would be both unwilling and unable to handle
the surplus under the terms of this bill. Under the first alternative (the
lean provision), the cooperative associations would be obliged to repay their
band with 4% interest and pay their losses, if any,in the normal course of
trade.
Under the second alternative (the equalization fee plan) not only would
the board make advances to the associations without Interest, but would
also guarantee to pay their "losses, costs and charges."
Moreover, the equalization fee and the non-premium insurance would
enable the board to insure them against decline in the market price and
against the consequences of bad management in merchandising their
products, and to compel all producers of the commodity—members and
non-members—to pay for the insurance. These inducements are surely
sufficient to insure unwillingness of the cooperative association to accept
the first alternative.
Both unwillingness and inability of the cooperative associations to
handle the surplus under the loan provision are made doubly certain by the
central objective of the bill, which is to inflate domestic prices and to dump
the surplus abroad at a loss. These associations, and every one else who
has given thought to the matter, know that this can not be done by loans
and that it never was contemplated under the plan I have proposed.
Legislation Suggested by President.
The objectives of the type of legislation I have suggested and of this bil
are radically different. The two proposals are therefore incompatible as
practical alternatives. The object of my proposal Is to aid in adjusting
production to demand, to afford farmers a greater bargaining power, to
handle surplus due to seasonal and other causes beyond the control of producers when unaided by strong business organizations, to minimize price
fluctuations, and to reduce the margin between the price paid by the consumer and the price received by the producer.
The real objective of the plan in this bill is to raise domestic prices to
artificially high levels by Government price fixing and to dump the surplus
abroad.
While agriculture has been distressed in many countries since the World
War, the severity of the agricultural depression in the United States must
not be underestimated. It is true there has been an increase in prices and
purchasing power of agricultural products. Many important farm products
have Increased rapidly in price in recent months. Nor should we overlook
the fact that our farmers have made noteworthy progress since 1921 both in
the purchasing power of their products and in the output per worker in
agriculture.
The latter is the result of improved methods and equipment, and is in
keeping with the fundamental cause of American prosperity—high productivity per worker. Moreover, we should avoid the error of seeking in laws
the cause of the ills of agriculture. This mistake leads away from a permanent solution and serves only to make political issues out of fundamental
economic problems that cannot be solved by political action.
In conclusion, if the measure is enacted one would be led to wonder how
long it would be before producers in other lines would clamor for similar
"equalizing" subsidies from the public coffers. The lobbies of Congress
would be filled with emissaries from every momentarily distressed industry
demanding similar relief of a burdensome surplus at the expense of the
'raessury.
Once we plunged into the futile sophistries of such a system of wholesale
commercial doles for special groups of middlemen and distributers at the
expense of farmers and other producers it is difficult to see what the end
might be.
I have believed at all times that the only sound basis for further Federal
Government action In behalf of agriculture would be to encourage its adequate organization to assist in building up marketing agencies and facilities
in the control of the farmers themselves. I want to see them undertake,
under their own management, the marketing of their products under such
conditions as will enable them to bring about greater stability in prices and
lees waste in marketing, but entirely within unalterable economic laws.
Such a program,supported by a strong protective tariff on farm products.
Is the best method of effecting a permanent cure of existing agricultural
ills. Such a program is in accordance with the American tradition and the
American ideal of reliance on and maintenance of private initiative and
individual responsibility, and the duty of the Government is discharged
when it has provided conditions under which the individual can achieve
success.
I am still hopeful that legislation along the lines suggested in my last
annual message, with which many of the provisions of this bill are in harmony, may be enacted, but this bill embodies substantially all of the objectionable features which I said, in that message to the Congress, I could
not endorse.
I am therefore obliged to return Senate Bill 3555, entitled "An act to establish a Federal farm board to aid in the orderly marketing and in the
control and disposition of the surplus of agricultural commodities in interstate and foreign commerce," without my approval.
CALVIN COOLIDGE.
The White House, May 23 1928.
[Vol.. 126.
Opinion of Attorney-General Sargent Holding Provisions of McNary-Haugen Farm Bill Unconstitutional.
Elsewhere in our issue to-day we are publishing the text
of President Coolidge's message vetoing the McNary-Haugen
Farm Relief Bill. The message was accompanied by the
following opinion in which Attorney-General Sargent advised the President that the Act, if approved, would violate
the Constitution of the United States, in that legislation having for its main purpose the control of the price of food in
the interest of the producer is not authorized by the Constitution.
OFFICE OF THE ATTORNEY-GENERAL,
Washington, D. O., May 22.
Sir:—In response to your request for an opinion as to whether the
bill to establish a Federal farm board (83555, 70th Congress, 1st Session), if approved, would contravene the provisions of the Constitution
of the United States, I submit my conclusions.
The bill resembles in many respects 84808, which you returned without
your approval Feb. 25 1927 and which was dealt with in my opinion ta
you rendered Feb. 25 1927.
Much that was said in that opinion applies to the bill now under consideration, but the importance of the subject and the differences between the two measures justify an extended statement of my views.
The first question is whether this legislation may be sustained under
the commerce power.
The Federal Government is a Government of limited powers. It ban
enly such powers as have been expressly given to it by the people in
the Constitution or are implied as incidental to the powers as ene
pressed.
In general, legislation under the commerce clause has been directed
at carrying out the primary purpose of the commerce clause, which, as
discussed in the decisions, was to prevent undue discriminations against
and burdens or restraints upon inter-State commerce, and most of the
decisions of the Supreme Court under the commerce clause deal with
such legislation.
Since, heretofore, Congress has never enacted legislation based on an
assumed existence of a power to fix prices of merchandise bought and
sold in inter-State commerce, no case identical with this may be found.
The bill declares the policy of Congress to be, "through the execntioa
of the provisions of this act, to provide for the control and disposition
of surpluses of such commodities, to preserve advantageous domestic markets for such commodities, to prevent such surpluses from unduly depressing. the prices obtained for such commodities, and from causing undue
and excessive fluctuations in the markets for such commodities, to minimize speculation and waste in marketing such commodities."
The provisions of the act to be executed are for limiting the available
subply of commodities by keeping them oil the market by purchase and
withholding in the country or sending them out of the country for the
purpose of increasing the price in this country; and influence on the
movement of merchandise in inter-State commerce is only such as may
incidentally result from the attainment of the primary result; and the
question is whether fixing and maintaining prices of goods bought, sold,
moving in inter-State commerce, because of the incidental effect it may
have on the movement of such goods, it or is not a valid regulation of
commerce within the meaning of the commerce clause.
Real Objective of Bill Price Maintenance.
Another way of stating the question is:
Has the Federal Government authority under the commerce clause to enter into
the business of buying and selling—manipulating a market in—goods flowing In
interstate commerce for the purpose of raising the prices of such foods between
producers and consumers.
That I do not misinterpret or over-state the matter when I say the real
objective is price maintenance and effect upon commerce only an incident in the operation of this bill, I quote from the report of the committee of the Howie (P. 25):
"... The board is authorized and directed to enter into 'marketing agreements'
with cooperative associations or corporations created and controlled by them, under
which such associations or corporations agree either to withhold from the market
or to buy, remove from the market, and export or otherwise dispose of such Quantities of the agricultural commodity as are agreed upon.
"The fundamental purpose of this act is to enable the board to assist In controlling and handling crop surpluses. It is expected that prices will respond readily.
(House Committee Report. Page 26.)."
It is suggested that the tariff acts and laws regulating immigration
and other legislation have an effect on domestic prices of merchandise
and labor. In such legislation the effect on prices is the incidental result
of the exercise of an admitted powers under the Constitution.
Here the fixing, establishing and maintenance of prices of merchandise is not the incidental result of the exorcise of power under other
clauses of the Constitution, but is the primary result to be accomplished.
Because it has been held that the fact that an otherwise constitutionally
authorized enactment may incidentally in its operation affect prices of
goods flowing in such commerce does not make such regulation invalid,
this legislation is said to be valid because the attainment of its purpose—
raising and maintaining prices by Governmental action in keeping off
the market a portion of the supply of goods—may incidentally affect
the flow of such goods in commerce.
". . . This current (of commerce) may find itself stimulated at
times and restrained at other times, as surpluses are disposed of or withheld. (House Committee report, p. 40; Senate Committee report, p. 25.)"
It is further said:
"As to the ... objection that the commerce power does not give Congress direo
power to fix, establish, and maintain prices in interstate and foreign commerce ...
the answer is .. . that no such direct power is given."
Let us examine this:
In the whole bill there is no provision for any action affecting commerce
other than the removal from commerce—taking out of the market—and
putting into commerce-selling-merchandise for the sole purpose of controlling
the price of such goods in the interest of the producer.
In view of the further provisions of the act, Section 8 (B) must be
construed to read:
"(B) Whenever upon such investigation the board finds, subject to and with
the approval of the Advisory Council for such commodity
*"
The action provided for Is:
"The board (subject to the approval of the Advisory Council) shall arrange for
the marketing of the surplus through marketing agreements" providing for with-
MAY 26 1928.]
FINANCIAL CHRONICLE
holding from sale any part of the surplus or for the purchase of any part of the
surplus and holding it off the market at Government expense with the risk of gain
or loss In such transactions borne by the Government, all done with Government
funds and all done 'through the execution of the provisions of this act.' to provide
for the control and disposition of surpluses,"to preserve advantageous domestic
markets,' to prevent surpluses from unduly depressing the prices obtained, and
prevent causing undue and excessive fluctuations in the markets.'"
The board "may make such regulations as are necessary to execute the
functions vested in it by this act." (Section 3E.)
The member delivering to a co-operative association a commodity for
withholding is to receive from the association an advance payment "fairly
reflecting the current market value of such commodity" and, further, is to
be insured against decline in price during the period of withholding the
goods from the market.
"In order that a co-operative association . . . may with reasonable
security make payment to its members at the time of delivery of such
commodity by the members . . . the board is authorized to enter into
an agreement . . . for the insurance of such co-operative association
against price decline . . ." (Section 11A.)
"Any such agreement for insurance against price decline shall provide
for the insurance of the . . . association . . . against loss to
such association or its members due to decline in the average market price
for the ecenmodity during the time of sale . . . from the average market price . . . during the time of delivery to the association."
So the producer will deliver his goods to his association, receive from it
in advance of Government funds to the amount of the then market price of
the goods, and at the same time be insured against loss by decline from
such price to any time when his commodity is sold within the year the.
insurance may run, notwithstanding how much higher the price may havre
been at any time between delivery and sale.
Not only are there these provisions for the control of such of the commodity as is delivered to associations by members, but further marketing
agreements shall provide for the purchase of any part of such ciimmodity
not delivered to such association by its members and the withholding and
disposal of the commodity so purchased and for the payment of the lasses,
oosts and charges arising out of such purchase, withholding and disposal
or of contracts therefor. (Sec. 8, C-2.)
And finally:
"During a marketing period fixed by the board (with the consent and approval
Of the Advisory Council) for any commodity, the board may enter into marketing
agreements for the purchase, withholding and disposal of the food products of such
commodity, and all provisions of this section applicable to marketing agreements
for the purchase, withholding and disposal of a surplus of the commodity shall
apply to the agreements in respect of Its fa I products." Sec. 8F.)
Puts Government in Market to Buy Up Crops.
This seems to put the Government and its agents, the board and the
Advisory Council, and the co-operative associations and other authorized
agencies, into the market to buy up the crop and hold it or ship it out of
the country, as the interest of the producer requires, and of manipulating
the market, not only in the agricultural products themselves, but in the
products made from them.
How can the price of any staple article of food be raised more certainly
and effefctively than by substantially diminishing the available supply?
Is there any limit to the height to which prices may be forced by the
Government's purchases and withholding from use of goods?
The price at which a surplus or any part thereof is to be purchased or
disposed of under any marketing agreement is not in any way regulated
or limited.
At any time the state of the market, so far as purchases are concerned,
must include, then, Governmental action artificially limiting the supply
available for domestic consumption, taken by agents of the Government
acting in the interests of the producers and not responsible to the board or
any one for the prices at which they buy or the sacrifices in price they
make in disposing of goods out of the country in order to make a scarcity
here.
"The theory of this measure is not that the board shall fix artificial
prices through definite prices named in the agreement, but that it shall
assist co-operatives to influence the prevailing price indirectly through
control and disposition of the surplus supply of the commodity under the
marketing agreements. (Senate Ocentnittee report, page 5.)"
What is to prevent the representative of wheat, corn or any other crop
in which the board authorizes trading from forcing the price to consumers
of food made from it in this country to any height?
Congress Not Empowered to Piz Prices.
Without reviewing again the decisions cited in my former opinion, it is
enough to say that in my opinion Congress has not been given power to
fix the prices at which merchandise may be bought and sold.
Another question is whether this bill delegates legislative power to the
board and the Advisory Council.
It has been said, and repeated maRy times in various forms, that the
marketing agreements equalization fee plan of surplus control is not to be
applied by the hoard to any commodity unless and until the provisions for
surplus control through loans to co-operative associations have proven
ineffective.
But such are not the provisions of the act as passed.
Quite to the contrary, the terms of the act are that the board shall
arrange for marketing agreements when it finds, with the consent and
approval of the Advisory Council, that there may be a surplus, and that
operation of the loan provisions will not be effective. The board shall
Investigate the supply and market condition, and if it finds, with the consent
and approval of the Advisory Council, that there is—or may be—a surplus
and that the operation of the loan provisions of the act, either because of
Inability or unwillingness of co-operative associations to control surplus,
will not be effective to control surplus, shall arrange for marketing of
surplus by means of marketing agreements and non-premium price-guaranty
contracts to commence when the board and the Advisory Council determine.
Di course, there always may be a surplus.
"We produce, and we cannot well avoid producing, a surplus above
domestic requirements of certain agricultural commodities (House Committee report, II. 14; Senate Committee report, II. 7)."
There is no rule of law laid down for their guidance and observance. To
say that they shall arrange for marketing agreements when they find that
the operation of the loan provisions of the act will not be effective to
control surplus, because of the inability of associations to control surplus
with the aid of loans, is to say they shall do it when they think best.
What quality of fact has a conclusion of the board of Advisory Council
that loan operations will not be effective because of inability to control,
when no trial of loan operations 1.as been had; when nothing is known as
to what associations can accomplish with two hundred millions of capital
at their disposal under a law giving them authority to buy up and hoard
the food supply, and to sell, send out of the country, much or little, when
they please—manipulate the market as they will?
3239
To say that the board and Advisory Council may find that operations
under the loan provisions will not be effective, because of the inability of
co-operative associations, with the assistance of loans, to control a surplus,
leaves action to the opinion of the board and Advisory Council based not
upon any acceptance with loan operations, but their own views as to what
will happen if they should be undertaken.
Under the provisions of the act giving the board and the Advisory Council
authority to decide whether operations under the loan provisions will be
effective to control surplus, the Congress delegates to the board and Advisory
Council authority to determine whether operations under the loan provisions
shall ever be tried.
Bil1 Aims to Raise, Maintain and Control Prices of Peed.
As elsewhere discussed, the purpose of this bill is to raise, maintain,
control, prices to consumers of food in the United States in the interest
of the producers.
The officials entrusted with its administration are to be persons who are
"producers," "interested in and representative of producers," persons
selected by "co-operative associations," "other organisations representative
of the producers of the commodity" "heads of agricultural departments,
and Governors of States," interested in the production of the commodity.
Seemingly every opportunity that can be devised is given for the full
exercise under authority of law of selfish interested control of price.
And, in addition, there is created a direct financial inducement to producers and those interested in and for them to reject all attempts at
operations under the loan provisions.
$200,000,000 Available in Loans to Co-operative Associations.
The act provides that not exceeding $200,000,000 shall be available for
loans to co-operative associations for carrying eut the policy of the act,
at 4% interest (Section 5B), and provides that at least 2200,000,000 shall
be available for advances to the stabilization funds for financing marketing agreements (Section 12) without interest (Section 8D), so the whole
$400,000,000 authorized to be appropriated may be used for financing
marketing agreements without interest. The equalization fee "is a payment directly or indirectly by the producers for benefits received by
them," but—
The payment of the fees will in most instances be reflected in the price
paid the producer for the conunodity. (House Committee report, page 42,
Senate Committee report, page 26.)
Equalieation Pee.
That is, the equalization fee paid by the producer for benefits received
by him is to be passed on to the consumer and paid by him.
There is not a word in the act as finally passed requiring a trial of the
loan plan before determining that it will not be effective, or the ascertainment of any fact as to its operation, nor any implication to that effect.
Facts are things which have come to be, which are, the existence of which
has been demonstrated. What will happen' if given experiments should
be undertaken is opinion, not fact.
In considering whether the operation of the loan provisions will be
effective the board and advisory council will have before them one plan
under which producers operate at their own risk and each can borrow for
use in limiting the domestic supply of foodstuffs 6200,000,000 at 4% interest, as against another under which they can have for the same use
$400,000,000 without any charge for interest, such fund being provided
either by the Government or by the consumers in this country through the
price paid by them, which is to include—"reflect the payment of"—the
equalization fee, or by both, without expense or risk.
To the board and advisory council under such conditions is delegated the
power to decide whether the loan provisions will be effective, with the
resulting conclusion, of course, whether they shall be undertaken, because
the board is not directed, but authorized only, to make loans.
Such a determination, being without foundation upon prescribed ascertained facts, is only an opinion; and action upon such opinion is only an
exercise at discretion. The continuance of the operations of removing
from the available supply, and hoarding or other disposition, is to be 10
long as the board and advisory council judge it to be advisable, "to
preserve advantageous domestic markets" and prevent depressing of prices
obtained.
It does not help to say that another element which may enter into the
decision is the unwillingness of the co-operative associations handling the
commodity to control the surplus, for that only makes one further delegation of authority—to the co-operative associations—to say whether the
marketing-agreement provisions of the bill shall or shall not come into
and continue in force; and then the whole matter of the beginning and
end of the use of marketing agreements, including the establishment and
collection of the equalization fee, is legislated into or out of existence,
not by Congress, but by the co-operative associations.
And, further, there is no way provided by which the unwillingness of
the co-operative associations shall be ascertained. Does it mean unwillingness of any part of them, or a majority of them, or all of them?
If, as pointed out above, the primary duty of the board and advisory
council is to determine the price at which certain agricultural commodities
shall be bought and sold in the domestic markets, then to the board has
been given the legislative power to determine that pries in its entire
discretion, without any rule or formula to guide its judgment prescribed
by Congress, such as a provision that the price to be maintained as the
objective of operations shall be based on cost of production, or reasonableness, or anything of that kind. The power of the board to control the
price is absolute and the discretion unlimited.
The Congress undertakes to delegate to the board and advisory council
authority to determine whether the provisions of this act shall or shall not
be the law under which the besiness of selling and buying food commodities
shall be conducted. That is a legislative function which cannot be delegated.
The board set up by the act is a governmental agency set between those
who produce food and those who must eat to live, an arbiter whom sole
guide is its own views as to what those who eat ought to pay to those who
produce, an arbiter authorized, empowered and directed to control by
manipulation of the market the price.
Control in Handling Surpluses.
This provision makes it clear that the fundamental purpose of this act
is, not to have prices fixed by the board, but to enable the board to assist
in controlling the handling of crop surpluses. It is expected that prices
will respond to such surplus control without any arbitrary price fixing by
the board. (Senate Committee report, page 13.)
Assuming that the board is composed of men of absolute rectitude, of
wholly impartial attitude, who will in all they do under the powers conferred upon them attempt to be fair to—look to the welfare of—the whole
people of the country, not of producers of food alone, still this act does by
its terms, as they appear to me and as claimed by its sponsors, commit to
them absolute power to control, regulate, raise and lower at will at all
3240
FINANCIAL CHRONICLE
time!, so long as they deem it advisable, the prices which producers may
obtain for their products and all the people must pay or go without.
In addition to the decisions cited in the former opinion as to the delegation of legislative authority, reference may be made to the recent decision
of the Supreme Court in J. W. Hampton, Jr., & Co. vs. The United States,
No. 242, October Term 1927, decided April 9 1928.
and
It is not the purpose of the act that the board shall act impartially
welfare
in what it does under the powers conferred upon it look to the
of the whole people.
will be
The current will be so controlled, however, that the surplus
flow regulated in
withheld or eliminated from a glutted market, and its
further the
such manner as in the judgment of the board will immediately
commodity. . . .
best interests of the domestic producers of the
report, page 24.)
(House Committee report, page 40; Senate Committee
to receive
The measure would permit producers of surplus commodities
upon such
collected
fees
an assured benefit from operations financed by
Committee report, 112.)
commodities. (House Committee report, 112; Senate
so long as
The marketing operations by the Government are to continue
of a policy
the board and advisory council judge advisable in furtherance
"surpluses from
"to preserve advantageous domestic markets" and prevent
unduly depressing prices obtained."
expect, that the
The act itself provides, and its sponsors understand and
producers and consumers,
board will not be an impartial arbiter between
but that it shall act in the interest of producers alone.
of the board and
The amount of the fee is to be based upon the estimate
expense and losses, and
advisory council from time to time of the probable
the product which will be
necessarily their estimate of the amount of
the sale, processing or transmarketed; and whether it shall be paid on
board.
portation of the goods to be determined by the
agreements cannot be known
Results of operations under marketing
from the market have
until the goods withheld, bought and removed
expenses paid.
been disposed of and proceeds collected and
under any equalization fee
So any deficit arising from transactions
stabilization fund by increased
established cannot be restored to the
transactions, and must stand
exactions upon the goods involved in those
if the fee in force at the
as a loss to the fund ; and the other way around,
is required to reimburse the
time of any transaction produces more than
reimbursement will remain in the
stabilization fund, the excess above such
producers from whom it
fund, with no provision for its return to those
had been exacted and taken.
compel some producers to conThe expressed purpose of the act is to
upon products of others.
tribute to gains or making up the losses
the amount of the fee is to
The consequence of any excess or deficiency in
amount of the fee to be collected
be corrected through revision in the
page 27; Senate Committee
subsequently. (House Committee report,
report, page 15.)
Equalization Fee Fails.
Taxes to Meet Deficiency lVhen
of the equalization fee shall
collection
the
that
The law contemplates
found when operations end that
is
it
If
ceases.
operation
cease when the
to produce enough to meet the
the equalization fee fixed has been too low
funds raised by taxation, conlosses, the losses will be borne out of public
it to the deficient stabilization
stituting the revolving fund, by loans from
fund, which must remain unpaid.
charge is a tax or is not.
It is not important to decide whether this
is obvious that what is
it
tax,
a
not
as
fee
equalization
Treating the
certain agencies under Government
enable
to
is
act
this
by
attempted
the business or buying, selling,
direction and supervision to engage in
agricultural products for the sole
hoarding and otherwise disposing of
purpose of controlling prices.
producers permission to organize
The theory of the act is that giving
to enable them to combine
ineffective
is
trade
of
restraint
combinations in
do not contribute to the enterand fix prices, because some producers who
of the expense; and the purpose
prise realize a gain without bearing any
directly or indirectly, to make a conof the act is to force all producers,
toward the losses and expense suffered
tribution, not in the nature of a tax,
of all producers wherever their
in operations for the common benefit
sold.
be
products may
participate in business operations by requirCompelling some citizens to
and expense thereof is, in my opinion,
ing them to contribute to the loss
the Fifth Amendment and taking of
in violation of the provisions of
law. (Parkersburg vs. Brown, 106
property without due process of
U. S. 487.)
then its proceeds constitute public
On the other hand, if it be a tax,
result that the public Treasury would
funds in the Treasury, with the
take the profits, if any, of the business
bear the losses and expenses and
agricultural commodity.
of buying, storing and selling of
Power of Constitution.
Taxing
Fee Viewed Under
called a tax, does not purport to be
not
is
fee
equalization
Because the
provided basis of equality, is not
Imposed as a tax, is not exacted on any
United States, is to be imposed and
to be paid into the Treasury of the
favor of interested administrative boards
collected or not at the will and
directing as to the time when it
without Congressional chart or compass
in effect, the amount of it or
remain
shall
it
time
shall be imposed, the
it cannot be sustained under the
think
I
levied.
be
shall
it
upon whom
taxing power of the Constitution.
to which the courts have gone
And, further, notwithstanding the length
unable to believe that in an act
in sustaining legislative authority, I am
governmental agencies, prices
which provides, in substance, that, through
upon, established and maindetermined
be
shall
products
of certain farm
to Federal officers the unlimited
delegate
lawfully
may
Congress
tained,
price-fixing operation shall be comdiscretion to decide whether the
complete discretion without any premenced; may lawfully delegate the
shall be; or may lawfully delegate
scribed rule to determine what the price
be directly placed the burden of
the power to determine on whom shall
to conduct operations.
fund
the
provide
to
charge
collecting the
providing for the control, in the
I think and advise that this legislation
Government of prices of goods
Interest of the producer alone, by the
keeping out of the channels of commoving in interstate commerce, or by
available for consumption, is not
merce a part of the supply of such goods
States and with foreign nations
a valid regulation of commerce between the
of the Constitution.
within the authority of the commerce clause
posts in the service of the
That the members of the advisory council hold
office is created by an act of
United States is shown by the facts that their
of the Congress, their
the Congress, their term of office is fixed by an act
an act of the Conduties are prescribed and their authority conferred by
prescribed
gress, their compensation and expenses "within the limitations
are specifically
they
and
Congress,
Iv law" are fixed by an act of the
constituted a Government agency. Under the provisions of this act
agencies entirely separate and apart from any department of the United
States Government participate in their appointment.
[vol.. 126.
Appointments Py Board.
The act provides that the board shall create an advisory council of
seven members, selected annually only from lists submitted by the co-operative associations and other representative organizations and the Governors
and heads of agricultural departments of States where the commodity is
produced.
Under these provisions the board has no choice but to appoint from such
lists, and all the co-operative associations, other organizations, Governors
and heads of agricultural departments need to do is to limit their list to
seven persons and they have made the appointment of the entire council.
But if they do not go that far, in any event the character, capacity,
integrity and judgment required in members of the advisory council are
passed upon by persons, corporations, officers, in no way connected with
or responsible to any department of the Government of the United States.
The board can take only what is offered to it; can make no independent
selection on its own judgment.
Conceding that the legislative branch may prescribe qualifications to be
possessed by an appointee to an office, still the exercise of the judgment
and discretion to determine whether or not an individual possesses those
qualifications of ability, training, judgment and character necessary to
make a good public officer, may only be committed by the Congress to
the appointing officers provided for that purpose and charged with that
duty by the Constitution.
To provide that corporations, associations, organizations and State officials
who are not even officers of the United States shall designate a list froirn
which only can appointees be selected is not in any sense prescribing qualifications, but is authorizing these outside agencies to participate in—even
control—the executive function of appointment.
I sin unable to find any constitutional authority for vesting the appointment of inferior officers of the United States by the Congress in any one,
outside of the President, with or without the advice and consent of the
Senate, the courts of law and the heads of departments.
"The Constitution, for purposes of appointment, very clearly divides all
its officers into two classes. The primary class requires a nomination by
the President and confirmation by the Senate. But foreseeing that when
offices became numerous and sudden removals necessary, this mode might
be inconvenient, it was provided that in regard to officers inferior to those
specially mentioned Congress might by law vest their appointment in the
President alone, in the courts of law, or in the heads of departments.
That all persons who can be said to hold an office under the Government
about to be established under the Constitution were intended to- be included
within one or the other of these modes of appointment there can be but
little doubt. This Constitution is the supreme law of the land, and no act
of Congress is of any validity which does not rest on authority conferred
by that instrument. (United States vs. Germaine, 99 U. S. 509, 510.) Bee
Springer et al. vs. Government of the Philippine Islands, Nos. 564 and 573,
October Term 1927, decided by the Supreme Court May 14 1928."
Therefore, I think and advise you that the delegation of authority to
dictate the selecting of individuals for such appointments to co-operative
associations, other organizations, Governors, and heads of agricultural departments of States, and conferring upon the board the authority to make
appointments, whether so selected or not, is not only without warrant in
the Constitution but contrary to its express provisions.
The appointment of advisory council failing, because of no constitutional
provision for their appointment being made in the act, might not be so
serious a matter, as perhaps those officers might be dispensed with and
the balance of the provisions (if otherwise valid) carried out, but for
another matter which seems to be inextricably interwoven in the whole
fabric of the bill.
It is provided that none of the marketing operations, including fixing the
amount of and collection of the equalization fee, shall be begun—or once
begun ended—without the consent and approval of the advisory council for
the commodity concerned.
The act vests-The advisory council with power to be exercised concurrently with the power
of the board to examine the facts upon which the board's decision to commence or
terminate a marketing period is based, or to approve the estimates which form the
basis for determining the amount of equalization fees.
"Substantially the same delegation of power as to findings of fact is made to both
governmental agencies, and their Joint agreement is required as to the presence of
certain prescribed conditions before part of the legislative power exercised in the
bill becomes effective. (Conference Committee Report, 4, third paragraph.)."
So the Congress delegates the final authority to determine whether the
act shall go into effect, and how long it shall remain in force, to a body
of officials for whose existence there is no constitutional warrant—a delegation to a body which cannot exist of legislative power which cannot be
delegated.
Act Violates Constitution.
I have considered these questions with realization of the grave responsibility involved in passing on the validity of acts of Congress and with
appreciation of the rule that the courts will indulge in every presumption
to support the validity of legislation and that no act of Congress will be
declared invalid unless plainly so, but nevertheless I feel bound to advise
you that the act in question, if approved, would violate the Constitution
of the United States, in that legislation having for its main purpose the
control of the price of food in the interest of the producer is not authorized
by the Constitution ; in that if Congress possessed the power to do things
attempted by this act it could not delegate it, as it is legislative in character ; in that it vests in those not officers or agents of the United States
the power and duty of participating in appointments to fill places in the
service of the United States; in that it contravenes the provisions of the
Constitution against the taking of property without due process of law.
Respectfully,
JOIIN G. SARGENT, Attorney-General.
The President, The White House.
President Coolidge Signs Flood Control Bill.
The Jones-Reid bill for flood control on the Mississippi
River and its tributaries became a law on May 15, on
which date President Coolidge affixed his signature to the
bill. According to the Washington correspondent of the
New York "Journal of Commerce," the flood control bill
as it went to the White House was not altogether in the
form that had been desired by the President, yet in vastly
better shape than when it emanated from the Flood Control
Committee of the Senate. The account quoted (Washington,
May 15) also observed:
MAY 26 1928.]
FINANCIAL CHRONICLE
The President has been advised that the Government's interests have been
materially safeguarded in the final draft of the measure, with respect to
liability for damages.
$25,000,000 Required Now.
Mr. Coolidge let it be known in no uncertain terms to visitors at the
White House that the "pork barrel" character of the original legislation
was not in conformity with his views on the economy of Government operation. Carrying out the ideas of the President, Administration leaders in
Congress were enabled to hold down the lid on this bill to a considerable
extent. As in the case of all controversial legislation, the best that is obtainable comes through compromise, so that even though Mr. Coolidge was
not able to get the kind of legislation he wanted, his influence was such as
to more nearly keep the measure within bounds.
General Jadwin. chief of Army engineers, has been discussing the financial requirements under this bill and it is said that he informed the President
that some $25,000,000 initially will be required. Something more definite
will probably come to Congress to-morrow or next day in the form of a
supplemental estimate of appropriation for inclusion in the forthcoming
deficiency appropriation bill. This measure will provide for all of the
extraordinary expenditures to be made by the Government under a considerable number of individual pieces of legislation separate from the routine
departmental appropriation bills.
Board to Decide Course.
Just what part of the flood control work will first be undertaken is to
be left to the board to determine. It is to this board that the President
contemplates the appointment of a civil engineer, as stated, disconnected
with the territory involved, so that he may feel free to make such decisions as he may think are for the welfare of the different localities without being embarrassed in any way by local connections.
This undertaking is looked upon by President Coolidge as one of the most
pretentious that the Goverment has ever had devolve upon it. The entire
cost has been estimated at varying amounts, the minimum being about
$325,000,000. By the time that the Government has completed the full program as contemplated by some of the sponsors of this law it may be found
that the total expenditure is in excess of three times that sum of money.
The present plan calls for an expenditure by the Mississippi Valley States
of only $500,000 in the furnishing of levee foundations.
The provision relieving the States of any costs except
about $500,000 for furnishing foundations for levees is one
which, according to the "Herald-Tribune", President
Coolidge was reported to have mildly opposed; the President
is understood to have favored payment of 20% of the total
cost by States. Representative Frank R. Reid of Illinois,
in charge of the House measure, in commenting on May 15
on the signing of the bill by President Coolidge, said:
The fairness with which President Coolidge has approached the consideration of this subject, his disposition fully and adequately to protect the people
and the land of the lower valley against the recurrence of such a disaster
as that which visited them in 1927, coupled at the same time with his care
to throw the proper safeguards around the Treasury of the United States,
had won the admiration of the entire nation."
Representative Reid also said:
The important feature of the whole bill, and the one which its advocates
feel will insure adequate flood control, is that one responsible agency, the
United States government, will have exclusive control and direction of the
entire project. Local interests will not be allowed to interfere with the construction of the necessary parts of the system.
The fatal weakness in the past has been that there were too many partners of varying size and ability participating in the building of the levees,
permitting weak levees which broke under the strain. Under the bill as
now enacted, the project will be carried forward as a complete and coordinated whole.
Noting that the major share of the $325,000,000 appropriation which the new law authorizes will be used for
controlling the flood waters. from Cape Girardeau, Mo.,
to the Gulf of Mexico, Associated Press dispatches May 15
from Washington said:
Departing from the old plan of relying solely on the levees on the main
stream for control, the new plan proposes the construction by the Federal
Government of diversion channels, known as floodways and spillways. In
carrying out this part of the program the Federal Government will assume
responsibility for damage to lands not previously subjected to floods.
The bill went to the President on May 9, following the
adoption that day by the Senate of the conference report
on the measure. The House approved the conference report
on May 8. On May 7 Washington advices to the "HeraldTribune" said:
Modification of the flood control bill was decided upon to-day by the
conferees of the House and Senate in a conference with the President,
and approval of the bill, which will carry an appropriation of $325,000,000,
is expected when the measure finally reaches the White House for
signature.
At President Coolldge's suggestion the conferees changed the bill as passed
by the House in three particulars, all designed to save the government
money,and the redrafted report of the bill was submitted to the House and
Senate late to-day.
The measure as modified changes Section 1 of the flood control legislation by prescribing that the reports of the surveys of tributaries contemplated by the bill shall be made to the Mississippi River Commission instead
of to the Flood Control Board, which is set up in the bill. The object
of this, it was explained, is to make reports on tributaries which may not
be completed for years go to the Mississippi River Commission, which is a
continuing body, obviating the necessity for keeping the flood control board
In operation after the main flood control work is completed.
Another change agreed upon was in the provision which requires the government to provide rights of way for floodways and assume damages for
losses sustained on banks opposite to those on which levees are constructed.
To make this acceptable to the President, the conferees agreed to insert
six words which will have the effect of limiting the Government's damage.
In other words,the Government will not assume damages for past or present
floods, but only for those which may come in the future.
By inserting the single word "additional" the conferees and the President
modified Section 4 of the bill, which was one of the most bitterly contested
paragraphs, as it concerns flowage rights. As now written. the United
States Government is relieved from acquiring rights of way of rivers or
channels which are natural floodways. Under the bill as passed by the
House, channels and rivers now in the floodway territory would have to be
paid for by the government.
3241
In order to amend the flood control bill as the President directed, the
House and Senate by the passage of a joint resolution broadened the powers of the conferees so they could withdraw the report already submitted
to each body and draft a new report containing the changes agreed upon.
This formality over, the conferees met at the White House conference and
drafted the new report, which was presented to both Houses late this afternoon.
It was stated on May 7 that although some provisisions
of the bill remained unsatisfactory to the President, he
considered it the best measure obtainable at the present
Congress. We indicated in our issue of April 28 (page 2587)
that the Senate passed the bill March 28 and that the
House passed it April 24. In the House on May 8 Representative Frear stated that "the conference report on the
flood control bill in some respects presents an entirely
different bill from that which passed the Senate unanimouslyor that which was afterwards reported to the House by the
House Committee and thereafter passed." Representative
Freer added:
No attempt will be made to point out all of the important changes in a
bill which it was predicted by Army engineers would costthe Federal Government from $1,000,000,000 to $1,500,000,000 as passed by the Senate, although a misleading amount of $325,000.000 was carried in the Senate bill.
Several specific amendments accepted by the conferees have been briefly
referred to. Their adoption ought to materially reduce the cost estimate
to an amount not far in excess of the $300,000,000 in round numbers estimated for the General Jadwin plan of flood control rejoined in its local contribution features by both House and Senate bills.
A provision inserted in the Attorney-General's substitute bill offered on
the motion to recommit required that States or local interests furnish rights
of way for flood-way levees, and also a provision recommended by the
Army engineer's plan for small local contributions are omitted from the
conferees' bill. To that extent it is a departure from the policy heretofore
adopted by the Federal Government. It also affords invitation for subsequent flood-control projects to evade contribution because of this precedent.
The following changes, however, in the original Senate and House bills
are of vast importance, and in substance far overshadow the objections
mentioned.
First, the amendment accepted by the conferees under section 1 now
provides that the President shall determine the flood plans and other important questions which are to be submitted to him, and that the board
temporarily formed for the purpose of recommending plans shall have no
power or authority in respect to the project excepting to recommend to the
President. This places responsibility with the Executive, and is a protection to the Government not afforded by the original bills, that left large
powers to a mixed politically formed board.
Second. The commission or board, consisting of the Chief of Engineers.
the President of the Mississippi River Commission, and a civil engineer,
with duties confined to a submission of Mississippi River plans, is infinitely
preferable to the commission provided in the Senate bill that as stated was
reasonably certain to develop into a political commission in course of time.
Proposals in other bills to have many millions of dollars of existing levee
indebtedness assumed by the Federal Government through action by such
commission affords an understanding of a danger that has been thus avoided.
Third. The provision contained in section 4 of the Senate bill and also
as reported in the House bill granting unlimited damages to public service
corporations has been stricken from the bill. This provision urged by
railway engineers before our committee contemplated a payment by the
Federal Government to their roads of over $71,000,000 for relocating their
roads in the flood ways and elsewhere. That provision has been eliminated
from the bill by the conferees.
Fourth. Under the House bill as passed by the House it was provided
In section 3 that the Government should acquire absolute ownership of land
or floodage rights where lands along the banks of the Mississippi River are
damaged by the construction of flood-control works.
This provision as passed by the House might have included lands heretofore subject to flowage all along the river and would have occasioned heavy
expense to the Government because of that fact.
As reported by the conferees, section 3 is now changed so as to provide
liability only "for damages for lands not now overflowed." This amendment is not subject to reasonable objection,although the provision is subject
to difficulties and possibly unnecessary expenditures because the Government will not be limited to "damages" to be collected by court procedure
but upon proof of damages not heretofore suffered it may be the duty of the
Federal Government to acquire absolute ownership or flowage rights to
such lands.
The distinction between a remedy of damages and an alterative of purchasing flowage rights was discussed when the flood-control bill was before
the House and also by the Attorney-General's substitute, which limited
relief for damages to damage suits.
Fifth. The main cause of contention throughout the debate of several
days was section 4, which provided that the Government should provide
flowage rights for 4,000,000 acres of land or for any additional or less
amount required for the flood ways.
Army engineers have estimated these costa would reach from $25 to $75
per acre, and presumably would cost the Government through condemnation suits or purchase over $200,000,000 Just for flowage rights in the flood
ways. It was also disclosed that 17% of the owners of flood way lands
owned 77% of such lands.
The oonferees, according to the report, have changed section 4 in two
particulars, as stated, first by inserting the word "additional" before the
words "destructive flood waters," so that it is understood the Government
will only be liable for any new or additional damages in the flood ways that
may be occasioned by the construction of flood-control works. If this construction is correct—and it has been passed upon by the Attorney-General—
then it will avoid any necessity for purchasing all of the lands which have
heretofore been subject to overflow. Only a small fraction of such lands
will be subjected to new overflow according to the engineers.
A second material amendment to section 4 has been agreed upon in the
conferees' report, which provides "that in all cases where the execution
of the flood-control plan herein adopted results in benefits to property
such benefits shall betaken into consideration by way of reducing the amount
of compensation to be paid." This recognizes and puts into effect the policy
of offsetting benefits against damages, and is an important protection to the
Government not recognized in the bill as passed by the House.
Sixth. An important provision not found in the Senate bill but reported
in the House bill is that which provides that in work on the tributaries "local
interests shall provide rights of way without coat to the United States,
contribute 33 1-3% of the cost of the works, and maintain the works after
3242
FINANCIAL CHRONICLE
This provision seta forth a flood policy hereafter to be adopted
completion."
by the Federal Government.
The modifications in the bill speak for themselves, and were made possible by the fact that without modifications there was strong possibility
that the bill could not become law, due to Executive opposition. To the
President and his advisers belongs the credit for removing some of the most
objectionable features of the bill.
In its present form the bill is not entirely all that could be desired to
Protect the Government, but due to the threatening situation in the Mississippi Valley flood-control works must be constructed without delay. For
this reason in their efforts to reach a satisfactory compromise the conferees
of both Senate and House are entitled to commendation from every friend of
and sympathizer with the flood-control problem.
The following text of the bill in the form in which it was
signed by President Coolidge is from the "United States
Daily":
[Vol,. 126.
property such benefits shall be taken into consideration by way of reducing
the amount of compensation to be paid.
The Secretary of War may cause proceedings to be instituted for the
acquirement by condemnation of any lands, easements or rights of way
which, in the opinion of the Secretary of War and the Chief of Engineers,
are needed in carrying out this project, the said proceedings to be instituted
in the United States District Court for the district in which the land, easement or right of way is located. In all such proceedings the court, for the
purpose of ascertaining the value of the property and assessing the compensation to be paid, shall appoint three commissioners, whose award,
when confirmed by the court, shall be final. When the owner of any land,
easement or right of way shall fix a price for the same which, in the opinion
of the Secretary of War, is reasonable, he may purchase the same at such
price; and the Secretary of War is also authorized to accept &methane of
lands, easements and rights of way required for this project. The provisions of sections 5 and 6 of the River and Harbor Act of July 18 1918 are
hereby made applicable to the acquisition of lands, easements or rights of
way needed for works at flood control: Provided, That any land acquired
under the provisions of this section shall be turned over without cost to the
ownership of States or local interests.
Section 5. Subject to the approval of the heads of the several executive
departments concerned, the Secretary of War, on the recommendation of
the Chief of Engineers, may engage the services and assistance of the Coast
and Geodetic Survey, the Geological Survey or other mapping agencies
of the Government, in the preparation of maps required in furtherance of
this project, and funds to pay for such services may be allotted from
appropriations made under authority of this Act.
An Act for the control of floods on the Mississippi River and its tributaries, and for other purposes:
Be it enacted try the Senate and House of Representatives of the United States
of America in Congress assembled, That the project for the flood control of
the Mississippi River in its alluvial valley and for Its improvement from the
Head of Passes to Cape Girardeau, Mo.,in accordance with the engineering
plan set forth and recommended in the report submitted by the Chief of
Engineers to the Secreatry of War dated Dec. 11927, and printed in House
Document numbered 90, Seventieth Congress. first session, Is hereby
adopted and authorized to be prosecuted under the direction of the Secretary
Fundsfor Tributaries Limited to $10,000,000.
of War and the supervision of the Chief of Engineers: Provided, That a
Section 6. Funds appropriated under authority of section 1 of this Act
board to consist of the Chief of Engineers, the president of the Mississippi
River Commission,and a civil engineer chosen from civil life to be appointed may be expended for the prosecution of such works for the control of the
by the President, by and with the advice and consent of the Senate, whose floods of the Mississippi River as have heretofore been authorized and are
compensation shall be fixed by the President and be paid out of the appro- not included in the present project. Including levee work on the Mississippi
priations made to carry on this project, is hereby created; and such board River between Rock Island, Ill., and Cape Girardeau, Mo., and on the
outlets and tributaries of the Mississippi River between Rock Island and
is authorized and directed to consider the engineering differences between
the adopted project and the plans recommended by the Mississippi River Head of Passes in so far as such outlets or tributaries are affected by the
Commission in its special report dated Nov. 28 1927, and after such study backwaters of the Mississippi: Provided, That for such work on the Missisand such further surveys as may be necessary, to recommend to the Presi- sippi River between Rock Island, Ill., and Cape Girardeau, Mo., and on
or levee districts shall provide rights of way
dent such action as it may deem necessary to be taken in respect to such such tributaries, the States
engineering differences and the decision of the President upon all recom- without cost to the United States, contribute 33 1-3% of the costa of the
mendations or questions submitted to him by such board shall be followed works, and maintain them after completion: And provided further, That
in section 1 of this Act
In carrying out the project herein adopted. The board shall not have any not more than $10,000,000 of the sums authorized
under the provisions of this section
power or authority in respect to such project except as hereinbefore provided. shall be expended
Such project and the changes therein, if any,shall be executed in accordance
In an emergency,funds appropriated under authority of section 1 of this
with the provisions of section 8 of this Act. Such surveys shall be made Act may be expended for the maintenance of any levee when it is demonmay
board
the
as
Mo.,
Girardeau,
Cape
and
La.,
between Baton Rouge,
strated to the satisfaction of the Secretary of War that the levee cannot be
deem necessary to enable it to ascertain and determine the best method of adequately maintained by the State or levee district.
securing flood relief in addition to levees, before any flood-control works
Section 7. That the sum of $5,000,000 is authorized to be appropriated
other than levees and revetments are undertaken en that portion of the as an emergency fund to be allotted by the Secretary of War on the recomunder
constructed
outlets
and
works
river. Provided, That all diversion
mendation of the Chief of Engineers, in rescue work or in the repair or
the provisions of this Act shall be built in a manner and of a character maintenance of any flood-control work on any tributaries of the Mississippi
which will fully and amply protect the adjacent lands. Provided further, River, threatened or destroyed by flood including the flood of 1927.
That pending completion of any flood way, spillway, or diversion channel,
Section 8. The project herein authorized shall be prosecuted by the
the areas within the same shall be given the same degree of protection as Mississippi River Commission under the direction of the Secretary of War
levee
the
to
contiguous
of
the
side
river
the
west
on
levees
by
afforded
and supervision of the Chief of Engineers and subject to the provisions of
at the head of said floodway, but nothing therein shall prevent, postpone. this Act. It shall perform such functions and through such agencies as they
delay, or in anywise interfere with the execution of that part of the project shall designate after consultation and discussion with the President of the
on the east side of the river, including raising, strengthening, and enlarging Commission. For all other purposes the existing laws governing the conthe levees on the east side of the river. The sum of $325.000,000 is hereby stitution and activities of the Commission shall remain unchanged. The
authorized to be appropriated for this purpose.
Commission shall make inspection trips of such frequency and duration as
All unexpended balances of appropriations heretofore made for pro- will enable it to acquire first-hand information as to conditions and problems
secuting work of flood control on the Mississippi River in accordance with germane to the matter of flood control within the area of its juridsiction;
the provisions of the Flood Control Acts approved March 1 1927, and and on such tripe of inspection ample opportunity for hearings and sugMarch 4 1923, are hereby made available for expenditure under the progestions shall be afforded persons affected by or interested in such problems.
visions of this Act. except Section 13.
The President of the Commission shall be the executive officer thereof and
shalt have the qualifications now prescribed by law for the Assistant Chief
Sums Previously Spent by Communities Recognized.
of Engineers, shall have the title Brigadier-General, Corps of Engineers,
Section 2. That it is hereby declared to be the sense of Congress that and shall have the rank, pay, and allowances of a Brigadier-General while
the principle of local contribution toward the cost of flood-control work. actually assigned to such duty: Provided, That the present incumbent of
which has been incorporated in all previous national legislation on the sub- the office may be appointed a Brigadier-General of the Army, retired, and
ject, is sound, as recognizing the special interest of the local population in shall be eligible for the position of President of the Commission if recalled
its own protection, and as a means of preventing inordinate requests for to active service by the President under the provisions of existing law.
unjustified items of work having no material national interest. As a full
The salary of the President of the Mississippi River Commission shall
compliance with this principle in view of the great expenditure estimated
hereafter be $10,000 per annum,and the salary of the other members of the
at approximately $292,000,000, heretofore made by the local interests in Commission shall hereafter be $7,500 per annum. The official salary of any
the alluvial valley of the Mississippi River for protection against the floods officer of the United States Army or other branch of the Government
of that river; in view of the extent of national concern in the control of these appointed or employed under this Act shall be deducted from the amount of
floods in the interests of national prosperity, the flow of Inter-State cont- salary or compensation provided by,or which shall be fixed under,the terms
merce, and the movement ef the United States mails; and, in view of the of this Act.
gigantic scale of the project, involving flood waters of a volume and flowing
Section 9. The provisions of sections 13, 14, 16 and 17 of the River and
from a drainage area largely outside the States most affected, and far Harbor Act, of Mar.3 1899, are hereby made applicable to all lands, waters,
United
States,
no
contribution
the
local
in
river
other
any
of
those
exceeding
easements, and other property and rights acquired or constructed under the
to the project herein adopted is required.
provision of this Act.
Section 3. Except when authorized by the Secretary of War upon the
President of Commission To Receive $10,000.
recommendation of the Chief of Engineers, no money appropriated under
item of
Section 10. That it Is the sense of Congress that the surveys of the
authority of this Act shall be extended on the construction of any
have given assurances satis- Mississippi River and its tributaries, authorized pursuant to the Act of
the project until the States or levee districts
(a) maintain all flood-control Jan. 21 1927, and House Document numbered 308, Sixth-ninth Congress'
factory to the Secretary of War that they will
and regulating spillway first session, be prosecuted as speedily as practicable, and the Secretary of
controlling
works after their completion, except
normally War, through the Corps of Engineers, United States Army, is directed to
structures, including special relief levees; maintenance includes
weeds, local drainage and minor prepare and submit to Congress at the earliest practicable date projects
such matters as cutting grass, removal of
accept land turned over to them for flood control on all tributary streams of Mississippi River system
repairs of main river leeees; (b) agree to
provide without cost to the United subject to destructive floods which projects shall include: The Red River
under the provisions of section 4; (c)
and levees on the main stem and tributaries, the Uazoo River and tributaries, the White River and tribufoundations
States all rights of way for levee
Girardeau. Mo., and the Head of taries, the Saint Francis River and tributaries, the Arkansas River and
of the Mississippi River between Cape
tributaries, the Ohio River and tributaries, the Missouri River and tribuPasses.
or rest upon the United States taries, and the Illinois River and tributaries; and the reports thereon, in
No liability of any kind shall attach to
Provided,
place:
any
at
waters
addition to the surveys provided by said House Document 308, Sixty-ninth
for any damage from or by floods or flood
of this Act it shall be found Congress,first session, shall include the effect on the subject of further flood
however, That if in carrying out the purposes
Mississippi River it is impracticable control of the lower Mississippi River to be attained through the control of
that upon any stretch of the banks of the
construction Is not economically the flood waters In the drainage basins of the tributaries by the establishto construct levees, either because such
unreasonably restrict the flood ment of a reservoir system; the benefits that will accrue to navigation and
Justified or because such construction would
river are subjected to greater agriculturefrom the prevention of erosion and alitage entering the stream;
the
channel, and the lands in such stretch of
overflowed or damaged by reason a determination of the capacity of the soils of the district to receive and hold
overflow and damage which are not now
banks of the river it shall be waters from such reservoirs; the prospective income from the disposal of
of the construction of levees on the opposite
Chief of Engineers to institute reservoired waters; the extent to which reservoired waters may be made
the duty of the Secretary of War and the
to acquire either available for public and private uses; and inquiry as to the return flow of
Proceedings on behalf of the United States Government
to overll'ow and damage waters placed in the soils from reservoirs, and as to their stabilizing effect
the absolute ownership of the lands so subjected
on stream flow as a means of preventing erosion, siltage, and improving
or floodage rights over such lands.
navigation: Provided, That before transmitting such reports to Congress the
Rights.
same shall be presented to the Mississippi River Commission, and its conUnited States to Provide Flowage
clusions and recommendations thereon shall be transmitted to Congress by
Section 4. The United States shall provide flowage rights for additional
the Secretary of War with his report.
main
the
diversions
from
of
reason
by
pass
will
that
waters
flood
destructive
The sum of $5,000,000 is hereby authorized to be used out of the approchannel of the Mississippi River: Provided, That in all cases where the
priation herein authorized in Section 1 of this Act. in addition to IMOUDEs
execution of the flood control pion herein adopted results in benefits to
MAY 26 1928.]
FINANCIAL CHRONICLE
authorized in the River and Harbor Act of Jan. 21 1927 to be expended
under the direction of the Secretary of War and the supervision of the
Chief of Engineers for the preparation of the flood-control projects authorized to be submitted to Congress under this section: Provided further,
That the flood surveys herein provided for shall be made simultaneously
with the flood-control work on the Mississippi River provided for in this
Act: And provided further. That the President shall proceed to ascertain
through the Secretary of Agriculture and such other agencies as he may
deem proper, the extent to and manner in which the floods in the Mississippi Valley may be controlled by proper forestry practice.
Survey and Report by Commission Required.
Section. 11. That the Secretary of War shall cause the Mississippi
River Commission to make an examination and survey of the Mississippi
River below Cape CHrardeau, Mo.,(a) at places where levees have heretofore been constructed on one side of the river and the lands on the opposite
side have been thereby subjected to greater overflow, and where, without
unreasonbaly restricting the flood channel, levees can be constructed
to reduce the extent of this overflow, and where the construction of such
levees is economically justified, and report thereon to the Congress as
soon as practicable with such recommendations as the Commission may
deem advisable; (b) with a view to determining the estimated effects, if
any, upon lands lying between the river and adjacent hills by reason of
overflow of such lands caused by the construction of levees at other points
along the Mississippi River. and determining the equities of the owners of
such lands and the value of the same, and the Commission shall report
thereon to the Congress as soon as practicable with such recommendation
as it may deem advisable; Provided, That inasmuch as the Mississippi
River Commission made a report on the 26th day of October 1912. recommending a levee to be built from Tiptonville, Tenn.. to the Obion River
In Tennessee, the said Mississippi River Commission is authorised to make
a resurvey of said proposed levee and a relocation of the same if necessary, and if such levee is found feasible, and is approved by the board
created in Section 1 of this Act and by the President, the same shall be
bult out of appropriations hereafter to be made.
Section 12. All laws or parts of laws inconsistent with the above are
hereby repealed.
Section 13. That the project for the control of floods in the Sacramento
River, Calif., adopted by Seaton 2, of the Act approved March 1 1917.
entitled "An Act to provide for the control of the floods of the Mississippi
River and of the Sacramento River, Calif., and for other purposes," is
hereby modified in accordance with the report of the California Debris
Commission submitted in Senate Document numbered 23. Sixty-Ninth
Congress. first session: Provided, That the total amounts contributed
by the Federal Government, including the amounts heretofore contributed
by it, shall in no event exceed in the aggregate $17,600,000.
Section 14. In every contract or agreement to be made or entered into
for the acquisition of land either by private sale or condemnation as in
this Act provided, the provisions contained in section 3741 of the Revised
Statutes, being section 22 of title 41 of the United States Code, shall be
applicable.
National Bank of Commerce in New York in Viewing
Business Conditions Find Attitude of "Wait and
See."
In its survey of the business situation, the National Bank
of Commerce in New York, under date of May 21 says:
A cautious attitude of"wait and see"toward the general course ofindustry
contrasting with the popular feeling of assurance in the position of the stock
market is the anomaly of the present situation. For the volume of current
business is good and soundly based, with a reasonable prospect of continuing
on a fair level. a prospect that cannot be foreseen with equal reasonableness
for the speculative position.
The steel industry has now been running along for many weeks at a high
rate of operation. Its activities have been well sustained beyond the time
when seasonal declines ordinarily set in, and it now seems probable that the
half year will set a new record in steel production. This fact Is particularly
interesting becausesuch major consumers as the automotive industry and the
railroads have not been taking steel In abnormal amounts. While structural
requirementa have been heavy, the oil industry's demand is light. The
sustained call for steel which has been keeping the industry operating
steadily for so long has come not simply from a few outstanding requirements but from the widely diversified list of manufacturers whose operations never appear in current "figures."
At the same time the other great key industries have in prospect a well
maintained volume of activity. Seasonal declines in autombile production
are in prospect, but the curtailment in this industry now in view is of leas
than the usual proportions. 'Building undertaken in April made a new
high record for all time, according to the F. W.Dodge Corporation's report,
with a total of contracts let in the four months of this year about 6% above
last year's high level. A large volume of construction work through the
summer is thus practically assured. In the textile field the problem of
profitable operation is ono of holding production in line with demand. which
the recurrent unseasonable weather of this spring has made irregular.
Properties of Sesquicentennial Exhibition at
Philadelphia Sold for $500,000.
With the filing of a report by E. L. Austin in the Federal
Court at Philadelphia on May 15, it was disclosed (says
the Philadelphia "Record") that the vast properties of the
Sesquicentennial Exhibition Association, reputed to have
cost upwards of $10,000,000, were sold at auction for slightly
more than $500,000. The "Record" added:
In a report covering 129 typewritten pages,E.L. Austin, who was director
general of the exposition, and appointed receiver along with Francis Shuck
Brown. former Attorney General of Pennsylvania, reveals that the total
amount received from the final disposition of the property was $635.387,
less, however, net losses of $110,272 on the sale of the appraised properties,
and that after the payment of counsel fees, receiver's expenses and other
costs incident to the handling of the exposition corporation's affairs, there
Is a cash balance of $208,668.
Out of this, however, $38,500 has been set aside for expenses yet unpaid,
leaving the balance $170,168. Assets which have been appraised at approximately $14,000 have yet to be liquidated and if the full appraisal
Is obtained, the final fund will be about $185,000.
Austin and Lawyer Share $50,000
Among the notable items in the account is the payment of $25,000 in
counsel fees to Frank A. Moorehead. who was attorney for John D. Cardi-
3243
nell, of Montclair, N. J., official photographer of the Sesqui, who filed the
suit on which the receivers were appointed, and who ater acted as counsel
for the receivers. Mr. Austin also has been paid 525.000 for his services as
receiver, but there have been no payments to Mr. Brown, his associate.
Edwin A. Abbott, who was chief counsel for the Sesqui Asso., of which
former Mayor Kendrick was President,received $3.500 for "legal services„'
in the equity proceedings.
The receivership eventuated from a "cut and dried" arrangement between
Cardinell and the Sesqui officets to wind up its affairs at the conclusion of
the exhibition in the summer of 1926, and in his bill of patriculars Cardinell
stated that the properties cost upwards of $10.000,000, but that their value
last April, when the receivers were appointed, was "problematical."
Though he was one of the receivers, Mr. Brown did not sign the report.
It was prepared and signed by Mr.Austin alone. As a basis for his accounting, the receiver took the appraised value of the property. of $358.991 but
he explained that some of the "assets." sold for $187,700 less than he appraised value, while here were gains of $71,427 on the sales of others, which
thus indicates a net loss of 5110.272.
The expenses of the receivership so far, which includes the lawyers' and
receivers' compensation and wages to clerks, workmen and other employes,
totals $127.023.18, and $38,500 additional has been set aside in a reserve
fund for other costs which have not yet been paid.
A month ago (April 17) it was stated in the Philadelphia
"Ledger" that City Comptroller Hadley, challenging the
right of the Sesquicentennial Exhibition Association and its
receivers to dispose of property, wrote Mayor Mackey on
April 16 urging that suits be started to "recover any assets
that may have been improperly disposed of."
That
account went on to say:
Mr. Hadley said the City of Philadelphia spent $15,541,820.81 for permanent and temporary improvements, including the Stadium and other
buildings; that the Association occupied the land and buildings without
lease.
"It is evident." he added, "that the improvements made and paid for
by the City of Philadelphia on the Sesqui grounds are the property of the
city: that no authority has ever been given by the Legislature or otherwise
to any person or corporation to take over or dispose of any of these assets;
that the Sesqui Association never had any right, title or interest In any of the
Property."
Suggests Recovery Suits.
The Comptroller urged that the proper city departments should account
for the property and the advice of the City Solicitor be sought concerning
suits to recover.
Mr. Hadley refused payment of eight bills, totalling $195,750.37, returning the vouchers and warrants without his signature. Some of the bills, he
said, had already been paid; others had received more than their claims
had entitled them to, and at least one creditor was nonexistent. He quoted
one letter saying "our records do not indicate that you owe us this money
and we request that you correct your records accordingly."
The largest amount. $116,738.42, was a claim by the Sesqui-Centennial
Exhibition Association and the voucher was returned because "the co 2tractors who furnished the labor and material covered by this voucher have
already been paid, and because the Sesqui-Centennial Exhibition Association has taken over thousands of dollars' worth of the city's property without authority and is still holding same."
Mayor Approves Proposal.
Mayor Mackey, commenting upon the latter, said he was in perfect
accord with the Comptroller. S. Davis Wilson, deputy Comptroller, who
delivered the letter to Mr. Mackey, said that in advance of a conference
with City Solicitor Ashton concerning &aqui assets, Mr. Mackey had announced he "heartily approves of the Comptroller's recommendations."
On the other hand, E. L. Austin. who was director general of the Exposition and who now is a receiver with Francis Shuck Brown, former State
Attorney General of Pennsylvania, said:
"The receivers are acting under the authority of the United States District Court."
He refused to comment further, saying that any report he made must
be presented to the court.
Subscriptions to Fund for Museum of City of New York.
Subscriptions to the fund which is being raised for the new
home of the Museum of the City of New York totaled
$1,423,705 on May 19, according to Raymond E. Jones, of
40 Wall Street, Treasurer. In addition to the subscriptions
reported in our issues of May 12 (page 2913) and May 19
(page 3069), receipt of the following contributions is announced:
$50,000
-In memory of Berthold Hochschild."
John E. Aldred
George S. Brewster
Henry W. de Forest
Clarence Dillon
J. Horace Harding
Miss Emily Duch
George B. Buchanan
Miss Agnes Miles
Carpenter
$5,000
Vincent Astor
$2,500
Miss Kate Cary
$1,000
Mr. & Mrs. Benjamin Frederick B. Pratt
Finley J. Shepard
Homan
Mrs:Byam Kerby
Walter E. Johnson
Stevens
Miss Ellen B.Laight
William Fellowes
Percy S. Straus
Morgan
$500
William Hamlin Childs "A Friend"
Stuyvesant Fish
Walter W. Naumburg
"A Friend"
$250
Sidney W. Fish
Otto Marx
Hancke Hencken
Severo Mallet-Prevost
F. Kleinberger Ostler- Paul M. Warburg
lea, Inc.
$200
George D. Cochran
Henry Schniewind, Jr.
Hays, Hirschfield &
Edward R. Stettinius,
Jr.
Wolf
$150
Henry J. Bernheim
$100
M.A.Bernheimer
William Lloyd Kitchel Wallace Reid
E. W. Coggeshall
John King Rockford
Samson Lachman
Thomas Crimmins
Mrs. George W.
Samuel Sloan
Bayard Dominick
Lawrence
Mrs. Eben Stevens
Victor J. Dowling
Richard W. Lehne
Mrs. James W.WadsFrederick K. Gaston
George Lueders
worth
Robert G. Mead
George Gibbs
Edmund W. Wakelee
Abraham Goldsmith
George Parmly
Louis Wiley
Henry S. Hendricks
Franklin A. Plummer
Vernon C. Brown
Pierre C. Cartier
Mrs. Frederick A.
Constable
FINANCIAL CHRONICLE
3244
$75
Frederick A. Hayward
$50
J. Archibald Murray
Mr. & Mrs. Henry M. Toch
$25
P. J. Barash
Mr. and Mrs. Charles Louis W. Rice
United Spanish War
Adolph Blochun
Veterans of Kings Co.
Sydney S. Cohen
G. Holstein
M. 'a
Harris H. Uris
Mrs. John H.Coster
Mrs. Herbert Beers
Mrs. J. QA. Ward
Edward I. Farmer, Inc.
Keen
Louts S. Weeks
E. T. Foote
William W.Peake
Frank M.Pendreigil
$20
Joseph Joffe
John G. Jackson
$15
Harold S. Wright
$10
Henry Hellman
F. Bender
Mr.& Mrs. Robert
Walter L. Lipman
Henry Bloch
Erskine Ely
Dr. Everett C. Jessup
Walter L. Bogert
Abraham C. Finellte
Jacob M.Levy
A. G. Chase
Paul G. Gabriel
Frederic W.Lord
Miss Cornelia Fulton
Mrs. Henry V. K.
Annie Nathan Mery
Crory
Gillmore
Miss Martha L. Purdin
William J. Daniel
Dr. S. S. Goldwater
Charles E. Greenough I. S. Seidman
Mrs. George V. W.
David J. Steinhardt
Duryee
B. F. Griffiths
Samuel Thorne
Miss Margaret Van
Miss Katherine T.
Edwin Carrington
Mrs.
Halsey
Nest Duryee
Ward
David S. Hays
Herman A. Milberg
Dr. Frederick Charles
Heckel
$5
J. K. Paulding
Miss Hattie H. Amberg Edwin F. R. Lent
F. H. Pittman
Miss Elizabeth Briggs Miss F. N. Levy
Mrs. H.FitzJohn
Ladin Brothers
Norman C. Browne
Porter
L. L. Winthrop Collver Mrs. Norman Lovett
Miss Peggy FitzJohn
Miss Effie McVicker
Gaston J. Cramer
Porter
Rev. F. A. Mason
Miss Alice A. Driggs
A. P. Schuster
Isaac S. Martin
Carl B. Eimer
Martin Lee Storm
Miss H. Merchant
Jacob E. Friedman
Miss S. G.Thorburn
William J. Miller
William F. Hayward
Y. Wemple
C.
Miner
0.
L.
Mrs. Howard J.
Harris R. Wemple
Murray M.Oster
Hamershlag
William R. Wemple
Mrs. G. T. Packard
E. C. Halter
Susan W.Wood
Mr.and Mrs. E.
Lewis Lefkowitz
Parsons
Abram I. Elkus
[VOL. 126.
19, according to announcement made by Charles B. Stuart,
Secretary. In addition to the election of officers, three
Governors will be chosen to succeed those whose term of
office expires. According to the slate submitted by the
Nominating Committee, It. E. Christie, Jr., of Dillon, Read
& Co., has been nominated for election to the Presidency
of the organization, to succeed William J. Minsch of
Minsch, Monnell & Co., Inc., who served during the current year. Pierpont V. Davis of The National City Company has been nominated for Vice-President, David Van
Alstyne Jr. of Peabody Smith & Co., Inc., Secretary, and
Walter S. Marvin of Hemphill, Noyes & Co., Treasurer.
Nominations for members of the Board of Governors to
serve for three years are G. Munro Hubbard of J. G. White
& Co., William J. Minsch of Minsch, Monnell & Co., Inc.,
and John C. Traphagen of the Seaboard National Bank.
At a regular meeting of the executive committee of the
National City Bank of New York held on May 22 Abram
V. Havens and Thomas F. Little were appointed assistant
cashiers.
A charter was granted on May 18 to the newly organized Industrial National Bank of New York, which is
scheduled to begin business July 2 in temporary quarters
at 64 Second Avenue, this city. The institution will have
a, capital of $1,500,000 and paid in surplus of $750,000.
The par value of the stock is $100 and it was sold at $150
per share. The following are the officers: Max Weinstein,
ComFinance
Chairman of the Board; Dr, Wm. I. Sirovich, President;
Museum's
the
of
Chairman
is
James Speyer
Philip L. Tuchman, Executive Vice-President; Walter
mittee.
Weinstein, Vice-President; Wm. H. Logan, Cashier.
ITEMS ABOUT BANKS, TRUST COMPANIES, ETC.
0. W. Birckhead, President of the Murray Hill Trust
The New York Stock Exchange membership of Frederic
Company of New York, announces that notice is being sent
C. De Vean was reported posted for transfer this week to
to its stockholders of a special meeting to be held June 12
Thomas E. Perkins, the consideration being stated as
to vote upon a proposal, approved by the Board of Di$398,000.
rectors, authorizing an increase in the trust company's
Arrangements were reported to have been made early in capital stock from $1,000,000 to $2,000,000. The new
the week for the sale of two New York Curb Market member- stock, consisting of 10,000 shares is to be offered to stockships for $90,000 and $92,000, respectively. Later in the holders of record owning the present 10,000 shares of
week announcement was made of the transfer of the member- stock at a date to be fixed at $150 per share, together with
ship of Herbert T. Hedge to Leo J. Burns and that of Peter the right to purchase one additional share of Murray Hill
Allied Corporation at $25 per share. If the proposal is
R. Lawson to Eugene D. Wisner, each for $95,000.
the Murray Hill Trust Company will have paidapproved
A special dispatch to the "Wall Street Journal" says that in capital of $2,000,000 and paid-in surplus of $1,500,000.
reported
were
two seats on the Los Angeles Stock Exchange
of The Murray Hill Allied Corporation will have capital and
sold, one for $75,000, a new high record, and an increase
surplus of over $500,000. The Murray Hill Trust Com$20,000 over the last preceding sale.
pany began business in September, 1926. Deposits are
Na- approaching $10,000,000, and the last published statement
A special meeting of the st- ockholders of the Central
pur- of the bank showed undivided profits and reserves since
tional Bank of this city will be held on June 8 for the
of opening for business of $175,000. The Murray Hill Allied
pose of approving the proposal to increase the capital
issuCorporation, which is a security company owned entirely
the
through
$2,500,000
to
$2,000,000
the bank from
of by stockholders of the Murray Hill Trust Company, comance of 5,000 additional shares. Present stockholders
the new menced business in September, 1927.
the bank will be given the right to subscribe to
for
stock of $175 per share upon the basis of one share
Louis G. Kaufman, President of Chatham Phenix Naregarditem
An
held.
stock
old
the
of
every four shares
tional Bank and Trust Co. of New York, established on
12,
May
of
issue
our
in
ing the proposal was published
May 21 an endowment of $100,000 for the newly built
page 2914.
Graveraet High School, Marquette, Michigan. The High
National School, named for Mr. Kaufman's mother, occupies a site
The increase in the capit- al of the Chemical
2 will donated by him. Marquette is the birthplace of Mr. KaufMay
on
stockholders
the
Bank of this city voted by
increased
be
will
man, who is the President of First National Bank and
capital
The
1.
June
effective
become
regard
with
Company there. The income of the endowment will
item
Trust
An
$6,000,000.
from $5,000,000 to
provide annually four scholarships, three merit medals,
thereto appeared in these columns May 5, page 2714.
three certificates of merit and three junior merit cerhad passed tificates, these last to be awarded in the grade next below
In denying rumors that control of his bank
President the first year class of the High School. A fund is proto the Claremont National Bank, C. W. Korell,
vided to supply music and instruments each year to the
of the Sixth Avenue Bank of New York, says:
been or will be any dis- High School band and another appropriation will finance
The suggestion or rumor that there is, has
together of this Bank with
a yearly series of lectures and entertainments for the
cussions of any kind concerning the tying
foundation.
any other band is absolutely without
con. High School students. This fund has already made posa
do
to
year
this
of
3
Jan.
on
business
This Bank opened for
present we have succeeded in sible the procurement as temporary coach for the school
servative banking business, and up to the
reference or desire to
formerly of
building a substantial foundation without any
discouraged any kind of musical organizations, of William Tyroler,
have
manipulate our bank stock. In fact, we
Opera and
Civic
interested
who
were
the
people
Chicago
Opera
House,
Metropolitan
to
sold
trading in it, since it was originally
with the fancy prices Munich Royal Opera House. One of the merit medals
for a long-pull investment. The fact that, even
there is practically
that are being quoted by professional traders to-day,
will be awarded to:
passing hands, bears out that our stockholders have
little or no stock
rather than a
purchased their holdings from an investment standpoint
speculative one.
The Sixth Avenue Bank is located at 958 Sixth Avenue,
at 54th Street.
the Bond Club of New York at
The annual meeting of
which officers will be elected to serve during the ensuing
year will be held at the Bankers Club on Tuesday, June
"That boy in the graduating class who, in his relations with and bearing toward, fellow students younger or less robust than himself, shall
conduct himself as the defender and protector of those needing assistance and the leader and advisor of those in need of guidance or.companionship, and who shall most nearly exemplify those qualities of integrity, chivalry and forthrightness that the school should endeavor to inculcate and the Community should be pleased to recognize."
Another merit medal will go to:
"That girl in the graduation class who, from her own example and
her helpfulness and counsel in her relations with other girls of the High
MAY 26 1928.]
FINANCIAL CHRONICLE
School, shall be deemed to typify best those qualities of character and
personality contributing to sound, healthy and capable womanhood."
Other awards will be made for excellence in scholarship, athletics, literary composition, artistic production
and musical composition or rendition. The First National Bank and Trust Company of Marquette is named
trustee of the fund. To supervise annual expenditures of
income, a Fund Committee is constituted consisting of
the Superintendent of Schools of Marquette, the Principal of Graveraet High School, the President of the First
National Bank, and the members of the Marquette Board
of Education. If unforeseen future circumstances render
any provision of the trust agreement absolecent, amendments appropriate to preserve the permanent utility of
the endowment are to be made by the Distribution Committee of the New York Community Trust, of which the
Chatham Phenix Bank is trustee.
The stockholders of the Madison State Bank, 100 Park
Row, New York, voted May 21 to double the capital
stock and surplus account of the bank. The present capital is $20W,000, which will be increased to $400,000 and
the present surplus of $100,000 will be increased to $200,000, making a combined capital and surplus of $600,000.
This action, it is stated, is taken owing to the increased
volume of business done by the bank. The enlarged capital will become effective June 21. The par value
of
the stock is $100, and the price at which the new
issue
is offered to stockholders is $150 per share.
The Federation Bank and Trust Company of this city
on May 21 announeed the formation of the Federatio
n
Shareholders Corporation. The new company will
have
a capital of $5,000,000 of which $2,000,000 will be
immediately subscribed. The date for the opening of
the new
corporation has not yet been decided upon. The
officers
chosen are: Peter J. Brady, President; Frank
X. Sullivan, Vice-President; Frederick W. Ludwig,
Treasurer;
Warren C. Fielding, Secretary; Jackson H.
Becker, Assistant Secretary-Treasurer.
M. R. Silverman has been elected a vice-presi
dent of
the Seventh National Bank of New York in the
the new
business department, Seymour I. Danzinger has
been
promoted from Assistant Vice-President to
Vice-President in the same department, while Joseph J.
Stanton
has been advanced from chief clerk to Assistant
Cashier.
Zimri C. Oseland, an Assistant Treasurer of the
Interstate Trust Company of New York, has been
elected a
member of the Advisory Board of the Franklin
Branch of
that institution.
Huntington Lyman, a mem- ber of the Governing
Committee of the New York Stock Exchange and a
partner
in the firm of T. L. Watson & Co., died on May
21 at his
home on Park Avenue. Mr. Lyman was 34 years
of age.
Jerre L. Dowling has been appointed an assistant Vice.
3245
The largest building on Long Island devoted exclusively
to banking was opened May 10 at 774 Broadway, corner of
Sumner Ave., Brooklyn. It houses the 774 Broadway unit
of the Manufacturers Trust Co. The building stands on
the same site occupied by the first office of Manufacturers
Trust Co. when it opened for business as Citizens Trust Co.
more than 22 years ago. During all of its existence, the bank
has had an office at this address. The building incorporates
many of the most modern developments in bank architecture. A feature of the building arrangement is the special
provision made for handling coin. A coin vault opens into
a coin room equipped with counting machines, and this, in
turn, communicates with a shipping room where armoured
cars may be loaded and unloaded behind closed doors.
The main banking room measures 70 by 120 ft., and the
public space has an area of approximately 3,000 sq. ft. To
the right of the main banking room, and connected with
it by a broad corridor, is the Safe Deposit Department.
Attending the opening were Nathan S. Jonas, President of
the Manufacturers Trust Co., and James H. Conroy,
Executive Vice-President. As President and Secretary of
Citizens Trust Co., they were present at the opening of the
first office, 22 years ago.
The Eastport National Bank of Eastport, L. I., has been
organized with a capital of $50,000 and surplus of $25,000.
The officers of the bank are: President, William H. Chapman; Vice-President, Harry Goldstein. It is expected that
the bank will begin business about Aug. 1.
Advices from Buffalo on May 15 to the "Wall Street Journal" stated that, starting immediately, the Marine Trust
Co. of Buffalo will erect a bank and office building to house
its Buffalo Trust branch. The building, including the
ground, will represent an investment of about $2,500,000,
it was said. It will be called the Rand Building in honor
of George F. Rand, former President of the Marine Trust
Co., and father of the present President, George F. Rand Jr.
With regard to the proposed consolidation of the three
Fall River (Mass.) banks, namely, the B. M. C. Durfee
Trust Co., the Massasoit-Pocasset National Bank, and the
Metacomet National Bank, as the first step toward the rehabilitation of the Fall River cotton industry planned by
Homer Loring of Boston (to which reference was made
in our issue of April 14 last, page 2261), the respective
stockholders of the banks involved at special meetings held
on May 18 voted, with practically no opposition, in favor
of the union, according to the Providence (R. I.) "Journal"
of May 19. The new organization will continue the name
as the B. M. C. Durfee Trust Co. At the meeting of the
B. M. C. Durfee Trust Co. the stockholders also voted to
increase the bank's capital from $800,000 to $1,200,000, and
to increase the number of directors from 12 to 42. The following additional directors were elected:
Simeon B. Chase, Michael T. Hudner, Milton Reed, Thomas D. Covel,
William H. Jennings, Edward S. Adams, James C. Brady, Benjamin S.
C. Gifford, Oliver K. Hawes, Edward B. Varney, Roy H. Beattie, Henry
Ashworth, Thomas B. Bassett, Frank L. Carpenter, Nathan Durfee, John
T. Swift, Leonard S. Chace, H. Richard Brown, Charles B. Chase, Madison F. Welsh, Jahn C. Batchelder, Robert NV. Powers, Roy F. Whitney,
Adam W. Gifford, Harold S. It. Buffinton, Augustus J. Wood and Homer
Loring.
President of the Bank of America of New York
City. Mr.
Dowling is a graduate of West Point, Class of
1922, and
for the past six years has traveled in the
South as the
representative of the Chemical National Bank. In
his new
In its issue of the previous day (May 18), the paper mencapacity he will be associated directly with
Dlinore F. tioned gave the prices at which the B. M. C. Durfee Trust
Higgins, Vice-President of the Bank of America
in the Co. will take over the assets of the two other banks, as
handling and development of its southern banking
and com- follows:
mercial business.
Assets of the Massasoit-Pocasset National Bank (capital $650,000), under
The stockholders of the Mechanics Bank of
Brooklyn
will meet on June 15, to act upon the recommend
ation of
the Directors to increase the capital of the bank
from
$3,000,000 to $4,000,000. New stock will be
issued the
basis of one share for each three shares held, at
$250 a
share. When this has been consummated the
surplus
will approximate $9,600,000.
The stockholders of the Lafayette National Bank
of
Brooklyn by resolution May 22 authorized the
increase of
capital stock from $400,000 to $500,000, the additional
stock to be sold at $140 per share. Of this $100 will
be
added to capital and $40 to surplus. Stockholders
are
given the opportunity to subscribe for one share of additional stock for each four shares held as of June 2.
Assignable warrants will be mailed to the stockholder
before June 8, which warrants will call for the payment
of subscription in full before June 23.
the plan recommended, are to be sold to the trust company at a price
equal to $217 per share for the entire capital stock. The payments to be
made are $17 per share in cash, reducing the balance to $200 per share
to be paid one-half in cash and one-half in stock of the B. H. C. Durfee
Trust Company, at $250 a share, or if the stockholders prefer, to be
paid entirely in cash.
The assets of the Metacomet National Bank (capital $500,000) are to
be sold at a price equal to $145 per share for the entire capital stock with
payment on the basis of $20 a share in cash, reducing the balance to $125
a share, to be paid one-half in cash and one-half in stock of the B. M. C.
Durfee Trust Company at $250 a share, or if the stockholders prefer, to
be paid entirely in cash.
Directors of the Greenwich Trust Company, the oldest
financial institution in Greenwich, Conn., have voted to
cut a substantial melon for the stockholders by recommending an increase in the bank's capital stock from $400,000 to $600,000, and the segregation of the Greenwich
Trust & Title Company, all of whose capital stock has been
held by the trust company. This action follows a period of
expansion in which total deposits and resources have
reached new high records. Several prominent Wall Street
financiers are directors of the Greenwich Trust Company,
FINANCIAL CHRONICLE
3246
among them Albert H. Wiggin, Chairman of Chase National Bank, and Percy A. Rockefeller. Valuable rights
will accrue to the trust company's shareholders through the
offering to them of 4,000 new shares at a price of $100 a
share in the ratio of one share for each two now held and
a similar offering of Greenwich Trust & Title Company
shares at a price of $75 each. The present stock of the
bank, which is of $50 par value, is currently quoted around
$200 a share and recently sold at a high price of $210. Before distributing the title company's shares, directors of
the Greenwich Trust Company propose to increase its capital from $150,000, consisting of 1,600 shares, to $400,000,
l
divided into 4,000 shares of $100 par value. The additiona
2,500 shares will be purchased at par by the trust company before being passed on to its own stockholders at
$75 a share. Upon completion of the capital changes, the
Greenwich Trust Company will have capital, surplus and
undivided profits of approximately $1,250,000 and total assets of more than $12,500,000. It is expected that dividends at the rate of 16%, or $8 a share, annually will be
paid on the increased capital of the trust company, and that
the present dividend rate of $5 a share annually will be
maintained on the title company's stock, with possible occasional extras. Stockholders of the company will meet on
June 19 to vote on the recommendations of the Directors.
During the past six years under the presidency of John
Maher, deposits of the Greenwich Trust Company have
more than doubled, increasing from $5,200,483 to $11,174,698. Total assets for the same period have increased from
$6,122,122 to $12,314,445.
[Vol.. 126.
Boston.
John F. Sherman, President, The Sherman Corporation,
Company; DiSons
&
Steele
William
President,
Steele,
M.
Joseph
rector, Tradesmen's National Bank.
Director,
Harry G. Sundheim, Sundheim, Folz & Sundheim, Attorneys;
Bankers Trust Company of Philadelphia.
Director, Bankers
T. Lewis Thomas, President, General Smelting Co.;
Trust Company of Philadelphia.
Director, Dodge
Samuel S. Thornton, President, Thornton-Fuller Co.;
Brothers, Inc.
Director, PhilErnest T. Trigg, President, John Lucas & Co., Inc.;
adelphia Rapid Transit Co.
GuarOscar L. Weingarten, President, Guardian Title and Mortgage
Trust Company
anty Company, Newark, N. J.; Director, Guardian
of New Jersey, Newark, N. J.
PhiladelMax Weinmann, Vice-President, Bankers Trust Company of
phia.
ComMaurice L. Wurzel, Vice-President, Bankers Bond & Mortgage
pany; Director, Colonial Trust Company.
The total capital of the Bankers Securities Corporation
and the Bankers Trust Company, now in and committed
to their businesses, approximates $16,000,000, and there
are about 2,000 stockholders in the two companies. The
resources of Bankers Trust Company, which through
ownership of half the voting common stock of Bankers
Securities Corporation controls it, now total about $21,000,000. Other items relative to the Bankers Securities
Corporation appeared in our issues of April 7, page 2095;
April 21, page 2426, and May 12, page 2915.
—*—
The Philadelphia "Ledger" of May 23 reported that
subscriptions to a new Philadelphia bank—the Guardian
Bank and Trust Co.—approximated 11,000 shares and an
allotment was made on the basis of about 50%. The new
bank, it is stated, will open on or about July 1, next,
The Third National Bank and Trust Company of Cam- when its new building at 22nd and Market Streets will be
den, N. J., for which a charter was issued April 30 by the ready for occupancy.
Comptroller of the Currency began business May 19. The
The Philadelphia "Ledger" of May 23 stated that C.
institution has a capital of $200,000 and a surplus of
Addison Harris Jr., President of the Frankin Trust Co.
$50,000. An item regarding the organization of the indiof that city, had announced the previous day that the
stitution appeared in these columns March 31, page 1927.
the bank's
rectors of his company had voted to increase
Rights
An application to organize the Point Pleasant Beach Na. capital stock by issuing 10,000 shares of new stock.
&mai Bank of Point Pleasant Beach, N. J., has been approved by the Comptroller of the Currency. The institution will begin business about July 1. It has been formed
with a capital of $100,000 and surplus of $45,000. James W.
Pearce is President and E. Delroy Holmes is Cashier.
-
The City National Bank in Lincoln, Neb., with capital
of $300,000, went into voluntary liquidation on May 3.
The institution was recently absorbed by the First National
Bank of Lincoln.
The Lexington Savings Trust Co., Lexington, Mo., a new
institution resulting from the merger of the Lafayette
County Trust Co. and the Lexington Savings Bank—started
business on May 15, according to a dispatch on that date
from Jefferson City to the Kansas City "Star." The new
bank, the largest in Lexington, has a paid-up capital and
surplus of $75,000 and total resources of approximately
$1,000,000.
to subscribe to the new stock (par value $100 a share) at
the price of $400 a share, will be issued, it was said, to
stockholders of record Aug. 7 on the basis of one share for
each two shares of stock now held. A meeting of the
stockholders will be held on July 31 for the purpose of ratifying the action of the board. When the new capital goes
into effect, the Franklin Trust Co. will have, it was stated,
a capital of $3,000,000 with surplus of $7,250,000. At the
present time the company announces its deposits are over
$38,000,000. In commenting on the action of the board,
President Harris was reported as saying that the increase
was made necessary to enable the bank "to more adequately
meet the credit requirements of the large commercial depositors, and also to permit them to enter broader fields
of financial development."
Samuel R. Rosenbaum, Vice-President of Albert M. Greenfield & Co., has been elected a director of the Broad Street
Trust Co. of Philadelphia, according to the Philadelphia
of May 19.
"Ledger"
Philadels
of
ion
Officers of Bankers Securitie Corporat
phia were elected at the organization meeting of the
Board of Directors on May 17. They are Albert M.
Greenfield, Chairman of the Board; Samuel H. Barker,
President; C. Addison Harris, Jr., Vice-President;
Maurice L. Wurzel, Vice-President; Frederick P. Gruenberg, Secretary and Treasurer, and George W. Martyn,
Jr., Assistant Secretary and Assistant Treasurer. The
Board of Directors of this institution, which starts with
$12,000,000 of capital and surplus subscribed in full by
1628 stockholders, consists of the following:
A press dispatch from Waynesboro, Pa., on Apr. 10,
printed in the Baltimore "Sun" of the following day, stated
that an application for a charter for a new bank in Waynesboro would be filed on Apr.23. The new institution will be
known as the Waynesboro Bank & Trust Co. and will be
capitalized at $125,000 with surplus of like amount.
The directors of the Farmers' and Merchants' National
Bank of Baltimore on May 21 voted to organize a business corporation for the purpose of making investments
Samuel H. Barker, President, Bankers Trust Company of Philadelphia. which the bank cannot make, to be known as the FarmJames M. Beck, Trustee, Mutual Life Insurance Company of New ers' and Merchants' National Corporation, according to
York; Congressman, Pennsylvania.
the Baltimore "Sun" of May 22. At the same time, it
William Fox, President, Fox Film Corporation.
was stated, it is proposed to reduce the par value of the
William Freihofer, President, Freihofer Baking Company; President,
bank's
stock from $40 to $10 a share. In continuation,
Northwestern Trust Company.
a.
Philadelphi
of
the "Sun" said:
Joseph J. Greenberg, Director, Bankers Trust Company
Albert M. Greenfield, President, Albert M. Greenfield & Company;
President, Bankers Bond & Mortgage Company.
C. Addison Harris, Jr., President, Franklin Trust Company.
Newark,
Michael Hollander, President, A. Hollander & Son, Inc.,
Company of New Jersey,
N. J.; Chairman of the Board, Guardian Trust
Newark, N. J.
States Mortgage and Title
William E. Lehman, President, United
Guaranty Company, Newark, N. J.
Philadelphia.
John Monaghan, District Attorney of
Schulte United Stores, Inc.;
Board,
the
of
Chairman
William T. Posey,
of America.
Vice-President, United Cigar Stores Co.
beneficial
The stockholders of the bank who join the plan will own a
thereinterest in the stock of the corporation, and receive cash dividends with
on. This beneficial interest can only be transferred in connection
carries
stock
the transfer of the bank stock, and the transfer of the bank
with it the beneficial interest.
will then
If the plan is ratified by the stockholders, each stockholder
in the proporhave a beneficial interest in the stock of the corporation
which
tion of one share of the corporation to each ten shares of the bank
he owns.
par bank stock
According to the plan, the present 16,250 shares of $40
that each
will be replaced by 65,000 shares with a par value of $10, so
four shares of the
shareholder of present bank stock will be entitled to
new issue for each share a the present issue held.
MAy 26,1928.]
*FINANCIAL CHRONICLE
The Farmers' and Merchants' National Corporation will be organized
under the laws of Maryland with an authorized capital stock divided into
65,000 shares without nominal or par value.
The bank, according to the plan, shall declare an extraordinary dividend of 80 cents per share on the 65,000 shares then outstanding. The
bank shall purchase with the dividends belonging to the stockholders,
shares of the corporation at the rate of $8 per share.
In a letter which is being mailed to the stockholders by William H.
Bideon, President of the bank, it is explained that:
"The National Bank act so limits and restricts the powers of the national banks that many profitable fields of investment are closed to them
and can be availed of only through a separate corporation. For some
time past the officers and directors of the bank have felt it would be
desirable to obtain facilities for taking advantage of these opportunities
and to secure for the stockholders the benefits presented hereby."
The agreement which will be submitted in due course to the stockholders of the bank was entered into between Benjamin H. Brewster, Jr.,
and Samuel P. Morton, Jr., stockholders of the bank, and Henry M.
Warfield, Sherlock Swann and J. C. M. Lucas, trustees.
It is hoped my the directors and officers of the bank that the business
of the new corporation may be started without delay. Stockholders are
asked to sign the agreement and return it to the trustees of the
bank on
or before July 21.
Louis F. Levy, former Treasurer of the defunct Huntingdon Savings Bank of Baltimore, who had been missing since
February last when the bank closed its doors after announcing a shortage of approximately $46,000, on May 21
surrendered to State Attorney Herbert R. O'Conor, and subsequently was released in $14,000 bail, according to the
Baltimore "Sun" of May 22. He will be brought to trial
within a few weeks, it was said. William Curran, the defendant's attorney, through whom the surrender was effected, was reported as stating that his client had been
employed in Baltimore during the time a search was being conducted for him, and also as declaring "the man
is
innocent and surrendered to stand trial in an attempt to
substantiate that claim." The assets of the Huntingdon
Savings Bank were taken over within a week after the
bank closed by the Century Trust Co. of Baltimore, as
noted
in our issue of March 3 last, page 1301.
Special meetings of the respective stockholders of
the
Merchants National Bank of Baltimore and the
Citizens
National Bank of that city will be held on June
20 next
to vote on the proposed consolidation of the
institutions
under the title of the First National Bank, referred
to in
our issue of May 19, page 3072.
Organization of a new bank in Pittsburgh which
will
have the backing of the Italian-American element of
the
city is in process, according to the Pittsburgh
"PostGazette" of May 10, which stated that more than
$150,000
was subscribed towards the proposed institution at a
meeting of the organization committee the previous night
(May
9) and that a subscription campaign would start
that day
to finance the new bank, or trust company, which
would
be capitalized at between $200,000 and $500,000. Shares
will
sell, it was stated, for $65, $50 of which will go toward
capital, $10 to surplus and $5 to expenses of
organization,
equipment and furnishings. All funds subscribed,
it was
said, will be deposited with the Pennsylvania Trust
Co. of
Pittsburgh, which will hold the funds until the
organization is completed either by the granting of a charter
or
by the acquisition of an existing bank. Members
of the
organization committee, all of whom are Pittsburgher
s, it
is understood, include the following:
Alfonso Aiello, Donato Ardoltno, Nunzio Battaglia, C. H.
Beninterid,
Louis P. Bilotta, E. J. Bucanelly, D. Oarapelluoci, A. J.
DeSimone, G. E.
Fabian!, Foye N. Formichella, A. E. Frosch, John A. Fugassi,
A. Gigliotti,
Antonio Iacovetti, Jarnes A. Manupelli, Mike ManeIla,
Charles J. Margiotti, Dario Mazzoleaf, Attorney M. A. Musmanno,
Dominic Novarro,
St. 0. Ortale, A. Ossola, G. A. Pivirotto, Rev. Bonaventure
Quidle, Daniel A. Ressa, Charles Rost, Joseph A. Rossi, Piseopo, R. G.
John 11. Scott,
Girard N. Shwa, Salvatore Sumer!, D. Trozro and John J.
Verona.
A small Virginia bank, the People's Bank of
Cleveland,
Russell County, Va., was closed on May 11 by orders
of the
banking division of the State Corporation
Commission, according to the Richmond "Dispatch" of the following
day.
The institution, it was said, which was organized in
1907,
had combined capital and surplus of $20,000; deposits
as of
Dec. 31 last of $158,522, and resources of approximate
ly
$200,000. A later issue of the "Dispatch" (May 15)
reported
that a charge of misapplication of $23,000 of the bank's funds
had been made against E. F. Jessee, the bank's Catihier, by
M. E. Bristow, Chief State Bank Examiner, in his application to the Russell County Circuit Court for the appointment of a receiver for the institution. S. M. Fletcher, of
'Lebanon, Va., it was said, was named by the Court to take
over the bank's affairs. The paper mentioned furthermore
• said in part:
3247
Whether any criminal action will be taken against Mr. Jesaee
was not
known here yesterday. Such action rests with the Commonwealth'
s attorney. The cashier was recently charged by the Federal authorities
with
counterfeiting. The State Banking Division investigated
these charges,
but was without authority to take any action.
William C. Freeman on May 22 resigned his position
as a Vice-President of the National Bank of the Repubilc,
Chicago, and also as Executive Vice-President of the
National Republic Company, according to a dispatch on
that day to the New York "Times." Mr. Freeman entered the National Bank of the Republic in 1901 as a
messenger boy and rose steadily until he became a VicePresident of the institution in 1922.
C. 0. Craig, for the past two and a half years a VicePresident of the First National Bank of Boone, Iowa, has
become a Vice-President of the Valley National Bank of
Des Moines, Iowa, assuming his new duties on May 17, according to the Des Moines "Register" of that date. Mr.
Craig, it is understood, is retaining his financial interests
in the Boone institution. Prior to going to Boone he was
National Bank Examiner at Des Moines for four years.
—4-Advices by the Associated Press from Bristow, Okla., on
April 28, appearing in the "Oklahoman" of April 29, reported that Bristow and Tulsa business men had held a
meeting that day and quickly subscribed $65,000 in capital
stock for the organization of a new bank to take the place
of the First National Bank of Bristow which closed its
doors earlier in the week. The new institution, it was said,
will occupy the building of the failed bank and the organizers announced that they planned eventually to take over
the assets and liabilities of the failed institution. The reorganization work, it was stated, Is in charge of the Bristow
Chamber of Commerce. It was furthermore stated that Dr.
W. W. Groom, President of the failed bank, told the meeting that the institution's resources are virtually intact and
that it should pay depositors 100 cents OR the dollar. Failure of the First National Bank on April 26 was reported
in a dispatch by the Associated Press from Bristow on April
26, printed in the "Oklahoman" of the followiag day. The
dispatch said:
D. Gross, Vice-President of the First National Bank here, which
closed its doors Wednesday, returned Thursday night and reported to L. I.
Roberts federal bank examiner, that he was prepared to aid in checking
the bank's accounts. Groom went straight to his home. His wife informed the bank examiner of his return to aid in the check.
Roberts Thursday discounted Groom's statement as "delightfully inconsistent with fact." In March of this year, Roberts said, the examiner
had ordered the bank to charge off only $80,500 in bad paper. His
investigation showed, he said, that David Kelly, a director and major
stockholder, had been persuaded against advice of friends to loan the
bank this amount to avert threatened failure of the bank.
Already, he added, his inquiries have developed "dozens of facts,"
which he might use in asking "that charges be filed against officials of
the bank."
Dr. W. W. Groom, the Vice-President's brother, and President of the
bank, has been aiding the examiner in checking the bank's books.
One of the depositors, H. A. Brown, said that the check had revealed
that his account of $8,000 had been dissipated.
Checks for $3,800 and $4,000, drawn on 0. D. Groom's personal account and made out respectively to J. A. Bagnell and John Spkovoty were
found in the papers, Roberts said. The checks, he said, were dated
the day before the bank closed and overdrew Groom's personal acootmt
$8,000.
A new institution—the American Bank & Trust Co.—has
been created by the consolidation of the American National
Bank of Richmond and its affiliated:institution, the American
Trust Co., according to advices from that city on May 7
to the New York "JournalfofiCommerce." The enlarged
bank has a capital of $3,500,000—the largest capital of any
bank in that section of theTcountry, according to Oliver
J. Sands, the President. Surplusland undivided profits
aggregate $1,700,000. Stockholders of the American National Bank will receive 5 shares of stock of the new organisation of the par value of $25 a share for each share of old
stock (par value $100 a share) held.
The Nashville "Banner" of May 16 stated that the directors of Fourth and First National Bank of that city
in regular session on that day approved the action of the
stockholders' meeting (held, it is understood, the previous
day, May 15) in charging the par value of the bank's
stock to $20 a share from $100 a share, and also their
action in voting to increase the bank's capital to $2,500,000 from $2,000,000. The paper mentioned furthermore
stated that the Nashville Trust Co., which is owned and
controlled by the Fourth and First National Bank, at a
The cashier is bonded for $15,000, it was pointed out, and this, with
the meeting later on the same day (May 16) voted to in• bank's surplus of $10,000, is expected to take care of the shortage. crease
the capital of the company to $750,000 from $666,-
3248
FINANCIAL CHRONICLE
[Vol.. 126.
uniformly stron .WRailroadishares,.except in a few special
nstances,avel eeirraii—roly steady, but made few noteworthy
advances. **Industrial stocks improved during the last half
of the _week and steel issues, particularly the independent
oup, ma=irther progress upward.vBrokers' loans for
the week ending May 23 showed a decline of nearly $46,000,a.y7 77'-'n'iceslmoved upward and—downward in
- ...
Mon
a highly irregularimanner and trading slowed down very perJesse B. McCargar announced his resignation as a ceptibly duringifthe first four-hour session of the market.
Vice-President of the Crocker First National Bank of Liquidation was strongly in/evidence andjpractically all of
San Francisco on May 17, according to the San Francisco the leading stocks showed losses at the close. Aeroplane
"Chronicle" of the following day, which stated that Mr. stocks, for instance, took another downward plunge and lost
McCargar's resignation following closely that of James from 17 to 19 points for the day. Other declines ranged from
J. Fagan, also a Vice-President of the institution, 6 to 13 points, but as a rule the recessions were between 3
through whom Mr. McCargar first became associated and 4 points. Railroad stocks were lower, particularly those
with the institution back in 1905. Mr. McCargar was re- effected by the Inter-State Commerce Commission decision
ported as saying that he intended to take a needed vaca- with respect to merger plans. The group included Pere
tion and that he did not care to divulge his plans for the Marquette, which dropped to 140, with a loss of 6 points;
future at this time." In regard to Mr. McCargar's bank- Chesapeake & Ohio, which slipped back 7 points to 198, and
ing career the San Francisco paper had the following Erie, which receded about 2 points to 563a. Public utilities
were decidedly1 weak, Columbia Gas, Brooklyn Edison and
to say:
McCargar same to San Francisco from his boyhood home in Contra Consolidated Gas dipping from 3 to 6 points. Copper stocks,
Costa county. His first banking experience in this city was with the on the contrary, were stronger and displayed marked imAmerican Bank and Trust Company. He remained with that institution
provement. Motor stocks and steel issues also suffered
after it became the American National Bank.
The young banker early won the confidence and esteem of James J. losses.
Fagan and when the later became Vice-President of the Crocker National
An avalanche of liquidation swept over the market on
Bank in 1905, he persuaded McCargar to come into the collection department there. His rise was rapid and in 1917 he was appointed Vice. Tuesday and stocks suffered a sharp break which conPresident, a position he has held to the present.
rally cancelled
-: ,inoderate
-717,.
tinued until the lairwhw
McCargar, in addition to his duties at the bank, has taken active inagain made the
stocks
,Copper
of
the
part
a
earlyrosses.
in
of
and
the
business
affairs
community
the
of
welfare
civic
the
in
terest
organizations, especially the California Bankers' Association. He was best showing, though both tobacco shares and sugar stocks
elected to the executive council of the association in 1915, and became were well supported. Railroad shares were inclined to
vice-president in 1919. Subsequently he was elected president. For
and the aeroplane issues continued to slip downthree years he was also a member of the executive council of the Ameri- heaviness
ward, Curtiss yielding 7 points to 120, at which price it
can Bankers' Association.
was down about 70 points from its recent high of 192.
That the West Coast Bancorporation of Portland, Ore.— Wright lost about 18 points to 168, and at that price had
the new bank holding corporation owning control of the receded 80 points from its top record of 245. General
West Coast National Bank of Portland and the Peninsula Motors was down, as were most of the leading indepeNational Bank (St. John's) of that city—had on May 16 pendents, including such issues as Hudson, Nash, Studepurchased control of the United States National Bank of baker, Hupp and Chrysler. The timble in local tractions
Salem, Ore., was reported in the Portland "Oregonian" of was quite severe, particularly Interborough which yielded
May 17. The acquired bank, it was stated, is capitalized from 12 to 13 points. Popular favorites like Radio Corat $100,000; has deposits of approximately $3,000,000 and poration, American Telephone & Telegraph, Allied Chemitotal assets of more than $3,300,000. D. W. Eyre is Presi- cal & Dye, American Can, Consolidated Gas and General
dent. According to Edgar H. Sensenich, President of the Electric also slumped badly. On Wednesday the market
West Coast Bancorporation, there will be no change either swung briskly upward and many speculative favorites rein the policies or personnel of the acquired bank other than covered most of the losses of the previous day. General
the possible increase of facilities for serving the enterprises Motors assumed the leadership early in the day and crossed
and commercial life of Salem. An item regarding the or- 189 with a gain of 4 points above the previous close, folganization of the West Coast Bancorporation, which is cap- lowed by Studebaker with an adance of 4 points. Chrysler,
italized at $5,000,000, appeared in the "Chronicle" of May Hupp, Hudson, Packard, Nash and Willys-Overland also
19, page 3074.
displayed decided improvement. New York Central led
the upswing in the railroad group and closed with a gain
have
Portland,
Ore.,
of
Co.
Directors of the Title & Trust
of
$600,more than 3 points at 182%. Pere Marquette and Ches.
to
$300,000
from
capital
bank's
the
voted to increase
&
Ohio each recorded substantial gains and Lehigh Valley
18,
of
May
"Oregonian"
Portland
000, according to the
sold .up to 1083., as compared with its previous close at
which, continuing, said:
eminent to make when ques- 105. Some of the spectacular specialties moved upward
Officials of the Title & Trust had little
has became necessary because with a rush,
tioned about the increase yesterday. It
notably Wright Aeroplane which regained 16
M. Daly, President. He added
of expansion of the business, said Walter
losses and closed at 18434 and Curtiss
its
of
previous
points
issue,
new
stock
proposed
the
of
offering
that there will be no public
it.
of
all
picked up about 12 points. Radio
for
&
which
Motor
subscribed
Aeroplane
having
present stockholders
has had a steady and consistent
advance of more than 13 points
an
with
closed
The company was organized in 1908 and
Corporation
to
1912
was
raised
in
This
growth. It started with $250,000 capital.
sold up to 113, a gain of 7
and
International
American
busititle
insurance
in
expansion
$300,000. There has been particular
also participated in the
stocks
g
Merchandisin
points.
ness, it was reported.
general improvement, with Montgomery Ward leading
The Board of Directors of the Standard Bank of South the group with a 9-point gain to 150, followed by SearsAfrica, Limited (head office London), have resolved, sub- Roebuck with an advance of 2 points to 103%. Kennecott,
diviject to audit, to recommend to the shareholders a
Anaconda, Cerro de Pasco, Greene-Cananea and American
last at the rate
dend for the half-year ending March 31
Smelting maintained their strong position with new advances
2s 6d per share, ranging
of 14% per annum, together with bonus
from 1 to 5 points.
of
both subject to income tax, making a total distribution
The general improvement manifest in the final hour of the
16%% for the year; to appropriate 1100,000 to writing preceding day was again in evidence as the session opened
down bank premises and to add 2125,000 to the officers' on Thursday, and, while profit-taking carried down some
pension fund carrying forward a balance of about E132,- prices to lower levels, the general tone was stronger. Rail100. The bank's investments stand in the books at less road stocks were higher than on the previous day, New York
than market value as at March 31, and all other usual Central moving briskly forward, followed by Rock Island,
and necessary provisions have been made. The general St. Louis-San Francisco, Kansas City Southern, Mo. Pac.
meeting will be held on July 25 next. The bank's New pref. and Tex. & Pax. Studebaker assumed the leadership
of the independent motor stocks and opened with a
York agency is at 67 Wall Street.
point gain on a block of 15,000 shares at 80, advanced to a
.
STOCK
EXCHANGE
4 and closed with a net gain of 23/ points
new
YORK
high at 813
NEW
THE
ON
WEEK
THE
Motors was more or less heavy and inat
81%.
General
on
Monday,
The stock market was irregular and unsettled
advanced 7 points to 193 and
Corporation
Radio
active.
prices
when
Tuesday,
on
liquidation
of
wave
followed by a
points when it crossed 1403'.
8
than
more
sold
up
Curtiss
market
the
week
advanced
the
sagged all along the line. As
of the utilities and General
best
the
was
Gas
displayed strong recuperative tendencies and a large part of Consolidated
among the standard instock
outstanding
the
was
Electric
been
have
stocks
Copper
recovered.
the earlier losses were
666.66, and following the meeting a charter amendment
was applied for by the trust company for the purpose
of putting into effect this capital increase. An item regarding the proposed increase in the capital of the national bank, and proposed resolution in the par value of
its shares, appeared in the "Chronicle" of May 5, page
2743.
MAY 26 1928.]
FINANCIAL CHRONICLE
dustrials. High class specialties like American Express
Adams Express and Case Threshing Machine were strong
and made some spectacular advances. Copper shares continued in brisk demand at improving prices, Inspiration
Copper moving into new high ground, followed by Cerro
de Pasco and Butte Copper & Zinc. On Friday under the
leadership of United States Steel common and Radio Corporation the upward trend continued. The former sold up to
1467
% at the close and Radio made a net gain of 10 points
at 203. Copper shares maintained their strong forward
movement, Anaconda selljng up to 72, followed by Kennecott at 943., American Smelting at 1953 and Cerro de Pasco
3
at 75%.
Otis Elevator was one of the outstanding strong
stocks and soared upward sensationally to 207 and closed
with a gain of 14 points. Other notably strong stocks were
Studebaker, American Linseed, Case Threshing Machine
and Commercial Solvents. The final tone was good.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY, WEEKLY AND YEARLY.
Week Ended May 25.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Railroad,
dtc.,
Bonds.
State,
Municipal th
Foreign Bonds.
United
States
Bonds.
STO CK EXCHA NGE CLOSE D.
2,671,540
57,585,500
$3,031,000
$1,115,500
3,095,160
8,305,000
3,015,000
1,032,500
2,812,210
7,449,000
2,659,000
721,000
3,047,150
7,923,000
2,650,000
529,000
3,113,000
6,665,000
2,421,000
341,000
Total
14.739.060
Sales at
New York Stock
Exchange.
537.927.500
513.776000
Week Ended May 25.
1928.
Stocks, No. of shares._
Bonds.
Government bonds...
State and foreign bonds
Railroad & misc. bonds
Total bonds
Stocks,
Number of
Shares.
1927.
an 730 non
Jan. 1 to May 25.
1928.
1927.
14,739,060
12,919,731
331,209,872
220,805,996
$3,739.000
13.776,000
37.927,000
$8,347,150
12,728,000
41,327,000
575,523,250
362,789,265
1,200,125,325
$133,948,750
389,126.900
990,355,550
555.442,000 362,402,150 $1,638,437,840 $1,513,431,200
DAILY TRANSACTIONS AT THE BOSTON, PHILADELPHIA
AND
BALTIMORE EXCHANGES.
Week Ended
May 25 1928.
Boston.
Philadelphia.
Shares. Bond Sales. Shares. Bond Sales
3249
Curb Market Transactions-Concluded from page 3280.
Foreign Government
and Municipalities
(Concluded)Cent Bk of German State &
Prov Banks 65B...1951
Secsf65A
1952
Copenhagen 454s
1953
Danish Cons Muni°545.55
5345 new
1953
Danzig P & Wat'way Bd
External s f 648_1952
Denm'k (Kingd'm)545'55
4345
1962
Estonia (Republic) 78-1967
German Cons Muni° 78'47
Indus Mtg Bk of Finland
15t mtge colt at 78..1944
Medellin (Colombia) Is '51
88
1948
Mendoza (Prov) Argentina
7145
1951
Minas°exam (State) Brazil
Ext 634s
1958
Montevideo (City) 68.1959
Mtge Bk of Bogota 711_1947
New
Mtge Bank of Chile 6s 1931
68 w I
1931
Mtge Bk of Denmark 55'72
Mtge Bk of Jugoslav 75'57
Mtge Bank of Venetian
Provinces 75
1952
Netherland 69
1972
Norway (Kingdom of) Bk
External 55
1967
Parana(State of)Braz 78.58
Prussia(Free State) 0)46'51
Eat'fls (of'27) Oct 15'52
Rio de Janeiro 6Hs_ _1953
Rio Grande do Sul (State)
Brazil 74(of '27)- 1967
Russian Government634s
1919
645 ctfs
1919
55411
1921
Saar Basin Con Counties
7s
1935
Santa Fe (City) Argentine
Republic, ext1 74__1945
Santiago (Chile) 76_1949
Saxon State MtgeInv 76'45
645
1946
Serbs Croats & Slovenes
(King) anti see 7s ser B.62
Switzerland Govt 5145 1929
Vienna (City) ext 62_1952
Warsaw (City) 7s____1958
Friday
Last Week's Range Sales
of Prices.
Sale
for
Price. Low. High. Week.
90
9456
97
89
95
94
100
90
91
9454
9834
97
91
64,000
9134 23,000
9454 25,000
9834 2,000
8,000
97
894
89
100%100%
95
95
944
94
994(9)1014
Range Since Jan. 1.
Low.
90
904
9434
984
95
High.
Jan 9214
Jan 93
May 9454
Jan 102
May 9914
Mar
Jan
May
Apr
Apr
16,000 86
Jan n90
Feb
26,000 1004 Feb 1024 Jan
34,000 95
Apr 954 May
21,000 91
Jan 95
Apr
150,000 9834 May 9)1004May
5,000 10044 Jan 1024 Feb
10154 102
984 9,000 9214 Jan 101
98
98
Apr
1044 10434 10434 17,000 10234 Jan 10534 Apr
10054
9755
97
9354
974
96
974
8834
994 1004 46,000
9714
97
934
9354
964
96
97
88
9734 23,000
29,000
98
944 22,000
94
11,000
9734 142,000
98 114,000
974 38,000
884 43,000
944 9434
10034 10054
954
98
98
9234
9754
964 Jan 1004 Apr
974
934
914
9144
96
96
9534
8734
May 9754 Apr
Jan 984 Apr
Feb (6)9554 Apr
Feb 9534 Apr
Feb 99
Mar
May 98
May
Jan 9934 Apr
May
Jan 90
4,000 94
Feb 96
Apr
2,000 10534 Mar 10834 Feb
44,000
13,000
36,000
176,000
72.000
94
98
954
914
964
Mar 964 Apr
May 9854 May
Jan 9834 Mar
May a9434 May
May 99
Mar
9434
98
98
9254
944
98
9754
9134
964
984
984 9854 19,000
96
1455
144
15,000
1434 15
144 144 2,000
1454 1555 5,000
1434 May
1434 May
1434 Jan
Jan 1004 AIX
30
Mar
Mar
18
1734 Max
10134 1014 10134 19,000 100
Feb 102 34 May
9,000 934
9854 984 99
10034 100 1004 40,000 100
9934 994 10034 36,000 99
974 19,000 9534
974 96
Jan 9934 May
Feb 1014 Any
Jan 1014 Mar
Jan 9854 Api
894
914
8954
894 904
1004 101
9154
91
8954 894
61,000 WSW Jan 92
Fel
65,000 10054 May 10254 Ape
137,000 894 Mar 934 Ape
Apr 9014 Max
106,000 88
Baltimore.
Shares. lfondSales.
3,384
5,203
5,979
4,378
5.546
3,915
§§§§§—8
0'06.50'0.
4
.-0 00..
HOLI DAY
HOLI DAY
*54,002
542,850 042.601
$53,000
*42,360
56,000 048,058
50,800
*39,408
27,000 058,414
13,600
*36,707
28.000 a68.210
70.000
20,878
23,000 080,472
40.000
se
COURSE OF BANK CLEARINGS.
Bank clearings still continue to record notable gains as
compared with a year ago. Preliminary figures compiled
by us, based upon telegraphic advices from the chief cities
of the country, indicate that for the week ending to-day
Total
193,355 $176,850 267,755 2227.400
28.405 5307.400 (Saturday, May 26) bank exchanges for all the cities of
Prev. week revised 1.45R 270 8220.00 214 AAA 1999 700
KO non
gon eon
the United States from which it is possible to obtain weekly
•In addition, sales of rights were: Monday. 26,358; Tuesday,
returns will be 18.9% larger than for the corresponding week
2
7,866;
Wednesday
26.201; Thursday, 16,052.
a In addition, sales of rights were: Monday,23,900; Tuesday.
10.100: Wednesday. last year. The total stands at $11,830,782,298, against
11,990; Thursday, 10.650.
$9,953,096,654 for the same week in 1927. The improvement follows almost entirely from the expansion at this
THE CURB MARKET.
centre, where there is a gain for the five days ending Friday
Prices declined in the opening sessions of this week's Curb of 34.2%. Our comparative summary for the week is as
Market, but on Wednesday a buying movement caused values follows:
to recover a good part of their earlier losses. Airplane stocks
Clearings-Returns by Telegraph.
Per
were conspicuous. Aero Supply Mfg. class"A"dropped from
Week Ended May 26.
Cent.
1927.
1928.
45 to 273/3, sold back to 45, and closed to-day at 40. The
New York
26,260.000,000 14,666,000,000 +34.2
class"B"stock broke from 39 to 233'2, and recovered finally Chicago
552,181,217
+3.4
571,139.889
432.000,000
+5.3
455.000,000
to 31. Transcontinental Air Transport was off at first from Philadelphia
Boston
-7.9
407,000,000
376.000,000
Kansas City
-6.7
109,215,230
101,843,354
29% to 243/s, then jumped to 31%2, the close to-day being at St.
Louis
110,900,000
+0.7
111,700,000
30,4. Wright Aeroplane "rights" were dealt in down from San Francisco
147.388,000 +36.5
201,140,000
Loa Angeles
143,073,000 +21.2
173,467,000
24M to 14 and up to 19% with a final reaction to 17. Alum- Pittsburgh
150.627.123 +13.9
171,524,368
Detroit
145,291.080 +16.0
168,544,038
inum Co.corn. fell from 1673
4 to 160, advanced to 174 and Cleveland
98,030,310 +11.1
108,821,716
-8.0
87.704.592
82,405,192
ends the week at 172. American Rayon Products improved Baltimore
New Orleans
47,644,143
+6.3
50,642,522
from 133
% to 20. General Ice Cream Corp. advanced from
+25.9
Thirteen cities, five days
57,097,054,695
28,832,228,079
663 to 74. Lehigh Coal & Nav, rose from 1273 to 140,and Other cities,five days
+8.7
944,773.535
1,026,757,170
finished to-day at 1397/s. U. S. Gypsum com, moved up
Total all cities, five days
39,858,985,249 88,041,828,230 +22.6
1,911.268,424
from 83 to 99%,the final figure to-day being 963g. Public All cities, one day
+3.2
1,971.790,049
l'ntal all pltla. 4,...............
utility issues were active and firm. Standard Oils were
el, Oln 700 008
20 acq 006 654
+18.9
inactive and very little changed. Penn.Mex.Fuel advanced
Complete and exact details for the week covered by the
from 48 to 53% and closed to-day at 533,.
foregoing will appear in our issue of next week. We cannot
complete
record
of
Curb
A
Market transactions for the
furnish them to-day inasmuch as the week ends to-day
week will be found on page 3277.
(Saturday), and the Saturday figures will not be available
DAILY TRANSACTIONS AT THE NEW YORK CURB MARKET.
until noon to-day. Accordingly, in the above the last day
*STOCKS (No. Shares).
of the week has in all cases had to be estimated.
BONDS (Pm Value).
Week Ended
In the elaborate detailed statement, however, which we
Indus. dk
May 25.
Foreign
Miscell.
Otl.
Alining. Total.* Domestic. Government. present
further below, we are able to give final and complete
STOCK EXCHA NGE CL OSED.
Saturday
results for the week previous-the week ended May 19. For
623,915 149.650 197,190 970,755 $2,447.000
Monday
2720,000 that week
553,144 158.620 114,150 825,554 3.178,000
there is an increase of 28.5%, the 1928 aggregate
Tuesday
625,000
725,518 119,550
93.890 938,958 2,347.000
Wednesday
842,000 of clearings for the whole country being $13,630,162,557,
570.145
123,450
115,930 809,525 2,891.000
Thursday
510,000
599,525 188,050 156.900 944,475 2,569.000
Friday
364,000 against $10,605,730,814 in the same week of 1927. Outside
3,072,247 739.320 678.060 4.489,267 $13,432,000 $3,061,000 of this city the clearings show an increase of only 8.9%, the
Total
•In addition, rights were sold as follows: Tuesday, 79300: Wednesday, 69.700; bank exchanges at this centre recording a gain of 42.6%.
Thursday, 12.400, Friday, 36,770.
Correction.-Friday figures for last week were Incorrectly reported. Should have We group the cities now according to the Federal Reserve
read: Industrial & Miscall., 801,123; Oils, 144.820; Mines, 106.450: total for day, districts in which
they are located and from this it appears
1.052,393. For the week:Indus.& Miscell..4,822,283; Oils, 1,244,880; Mines.618.880; total for week, 6,685,543.
that in the New York Reserve District (including this city),
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
the improvement reaches 42.3%. In the Boston. Reserve
District the increase is only 4.6% and in the Philadelphia
Reserve District 2.5%. The Richmond Reserve District
shows a trifling decline, namely 0.9%, but in the Cleveland
Reserve District clearings have increased 5.0%. In the
Atlanta Reserve District the increase is only 0.7%, but this
is notwithstanding the losses at the Florida points, Miami
showing a decrease of 46.8% and Jacksonville of 20.7%.
In the Chicago Reserve District the totals are larger by
10.4%, in the St. Louis Reserve District by 8.0% and in
the Minneapolis Reserve District by 15.6%. The Kansas
City Reserve District suffers a decrease of 0.3% and the
Dallas Reserve District of 1.3%. On the other hand, the
San Francisco Reserve District records an increase of 28.2%.
In the following we furnish a summary by Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
Week End. May 19 1928
1928.
1927.
160.01'
Dec.
Federal Reserve Diets.
18t Boston _ _ _ _12 citiee
2nd New York_11 "
3rd Philadelphial0 "
4th Cleveland__ 8 "
5th Richmond _ 6 "
6th Atlanta____13 "
7th Chicago_ _ _20 "
8th St. Louis_ 8 "
9th Minneapolis 7 "
10th Kansas CitY12 "
llth Dallas
12th San Fran_ _17 "
630,906,154
8,937,668,506
647,040,876
456,737,595
191,581,825
204,570,568
1,142,658,418
244,428,838
134,747,823
257,711,303
74,134,944
727,784,712
603,119,360
6,281,874,115
631,012,550
434,909,818
193,303,607
203,158,137
1,034,653,305
226,304,819
116,575,823
237,980,216
75,143,515
567,695,549
+4.6
+42.3
+2.5
+5.0
-0.9
+0.7
+10.4
+8.0
+15.6
-0.3
-1.3
+28.2
567,096,319
5,444,264,039
583,711,665
403,054,049
209,485,773
226,033,722
1,060,676,480
227,848,419
122,606,907
223,843,429
73,143,603
526,006,103
485,532,762
5,323,926,997
612,327,534
390,132,941
195,835,141
231,212,140
979,724,374
209,624,707
121,970,120
216,629,477
63,367,363
501,997,330
129 clam 13,630,162,557 10,605,730,814 +28.5
Total
4,647,917,149 4,450,281,574 +8.9
Outside N. Y. City
9,664,780,508
4,342,210,941
9,332,280,886
4,129,853,282
387.576,838 +39.8
345,337,996
296,634,036
Canada
[VoL. 126.
FINANCIAL CHRONICLE
3250
31 cities
541,818,820
1926.
1925.
We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended May 19.
Clearings al1923.
1927.
inc. Or
Dec.
1926.
3
1925.
$
i
%
$
First Federal Reserve Die trict-Bosto 756,014 -17.5
623,367
Maine-Banger.
3,573,713 +20.1
4,291,849
Portland
Maas.-Bostoa_ _ 555,000,00 546,000,000 +1.8
2,191,228 +26.9
3,779,948
Fall Rtver___
1,345,213 -3.1
1,244,679
Lowell
1,189,145
1,270,188 -7.0
New Bedford_
+9.2
6,036,224
6,696.705
Springfield_ _
+3.0
3,625,274
3,732,968
Worcester
16,486,979 +43.3
23,618,161
Cona.-Hartford
7,212,190 +59.5
10,059,677
New Haven_ _
14,840,200 +41.4
39,989,204
R.I.-'-Provldeasm
740,248
311.137 -6.3
N. H.-Manehes
691,217
3,659,100
510.000,000
2,116,029
1.065.778
1,547,741
5,955,403
3,696,063
15.322,698
6,995,979
15,353,200
693.111
689,257
2,907.825
432.000,000
2,291,569
1,156,176
1.572,058
5,884,942
4,090,701
14,069,246
6,625,237
13,587,000
658,751
+4.6
567,096.319
485,532.762
Total (12 cities)
630,906,154
603,119,360
Second Fede al Reserve D !strict-New York.
7,372,420
6,085,351
7,725,419 +25.1
9,664,434
N. Y.-Albany
1,068,000
1,170,100
1,322,093
1,134,502 +16.5
Binghamton_ _
56,521,209
51,250,057
64,492,090
54,295,411 +18.8
Buffalo
911,586
1,059,000
1,182,879 +8.0
1,277,705
Elmira
1,315,731
1,475,258
1,333,021
1,438,492 -7.3
Jamestown__ _
New York _ 5,782,245,408 6,155,449,240 +42.6 5,322,569,567 5.202,427,604
12,978,706
13,703,800
15,664,196
13,418,229 +16.7
Rochester
6,109,253
5,108,869
+9.1
6,502,551
7,093,494
Syracuse
4,894,881
4,189,960 +16.8
Conn.-Stam for
4,205,118
3.568.327
615,660
1,198,664
769,352
963,797 +24.4
N. 2.-Montclair
32.038,876
35,801,123
35,573,635 +36.6
48,472,520
Northern N. J_
Total(11 cities) 8,937,658,506 6,281,874,115 +42.3 5,444,284,039 5,323,926,997
Third Federal Reserve Dist rict-Philad el phi a1,696,901
+5.9
1,687,724
1,787,086
Pa.-Altoona. _ _
4.210,305 +16.5
4,154,535
4,904,003
Bethlehem
1,356,063 -5.0
1,287,501
1,341,220
Chester
2,355,501
2,017,066 -1.0
1,995,852
Lancaster
Philadelphia _ _ 608,000.000 597,000,000 +1.8 550,000.000
4.589,533
4,651,808 +9.6
5,099,657
Reading
6,314,605
6,173,408 +8.8
6,717,984
Scranton
4,353.208
4,98.5,771 -7.3
4,600.000
Wilkes-Barre. _
2,023,806
1,763,454 +30.1
2,294,735
York
6,882,356
7,166,951 +44.5
10,354,054
N. J.-Trenton
1,404,179
4,260,961
1,363,848
2,586,535
580,000,000
3,566,748
6,179,587
4,511,161
1,671,516
6,782,999
+2.5
583,711,665
612,327,534
dFourth Fderal R eserve Distri ct-Clevela
7,584,000 -.5.8
7,145,000
Ohio-Akron _ ___
+3.2
4,316,682
4,455,022
Canton
80,389.096 +3.3
83,001,361
Cincinnati _ _ _
144.471,807 131,346,001 +10.0
Cleveland
17,963,300 +1.0
18,141,600
Columbus
2,392,512 -6.5
2,236,541
Mansfield
5,487,142 +18.2
6,487,125
Youngstown_
+2.9
pa -Pittsburgh.. 190,799,139 185,431,085
6,456,000
3.939,263
74,188,424
114,217,425
15,545.700
2,223,251
4,231,882
179,252,104
6,053,000
4,443,209
71,979,067
117.515,992
13,987,100
2,045,804
3,848,416
170.260,353
Total (10 cities)
Total(8 cities) _
Fifth Federal
W.Va.-Hunt'g'n
Va.-Norfolk
__
Richmond
_- 'n
S. C.-Charlest
Md.Baltimore_ _ _
D.C.-Washing'n
647.040,876
631,012,550
+5.0
400,054,049
390.132,941
Reserve Dist rict-Richm ond+5.6
1,259,078
1,330,007
5,367,078 +10.8
5,946,571
+0.5
46,164,000
46,411,000
2,104,171 -0.2
*2,100,000
106,309,942 110,533,454 -3.9
+5.8
27,875,826
29,484,305
1,506,422
7,754,324
48.382,000
2,032.565
121,852,904
27,967,558
1,548,799
7.673,953
48,644,000
2,194,863
107.797,509
27,976,017
456,737,595
434,909,818
-0.9
209,495,773
195.835,141
Sixth Federal Reserve Dist rIct-Atlant a+9.5
9,488,846
10,389,443
Tenn.-Chatt'sa.
+4.5
*3,300,000
3,448,238
Knoxville
24,043,793 -5.2
22,794,064
Nashville
+0.9
53,134,630
53,636,894
_
Ga.-Atlanta
1,810,197 -2.8
1,759,922
Augusta
1,806,395 +29.8
2,344.764
Macon
-20.7
21,898,270
17,361,378
Fla.Jack'nvllle _ _
5,952,067 -46.8
3,164,000
Miami
-0.3
25,429,447
25.365,348
Ala.- Birming'm
1,974,775 -4.5
1,884,090
Mobile
1,510,446 +41.5
2,138,000
'Miss.-Jackson_ _
329.879 +1.3
334,120
Vicksburg _ _ _ _
52,478,492 +14.2
59.950,307
La.-N.Orleans:
9.087,936
3,074,896
21,981,443
59,655,812
1,723,116
1,814,760
30,535,155
14,006.469
26,136,456
1.970,812
1,558,000
309,173
54,179,694
7,421,336
2,594.290
22,156,341
62,071.709
1,798,193
1,318,025
25,488,482
18,913,144
21,052,050
1,730.483
1,145,000
278,305
65,246,782
+0.7
226.033.722
231,212,140
Total(6 cities)-
Total(13cities)
191,581,825
904 570 RAR
193,303,607
9/13 1051:57
Week Ended May 19.
Clearings 011928.
Seventh Feder
Mich.-Adrian .._
Ann Arbor_ _ _ _
Detroit
Grand Rapids _
Lansing
Ind.--Ft. Wayne
Indianapolis._ _
South Bend_ _ _
Terre Haute_ _ _
Wts.-M llwaukee
Iowa-Ced.Rap_
Des Moines_ _
Sioux City- - - Waterloo
Ill-Bloomington
Chicago
Decatur
Peoria
Rockford
Springfield_
1927.
Inc. or
Dec.
$
al Reserve Di strict-Chic ago.
255,102 +29.9
331,377
1,224,150 -25.7
934,125
221,618,027 185,059,005 +19.8
9.649,286
8,130,696 +18.7
2,670,554 +36.4
3,642,000
3,377,811 -00.0
3,552,630
22.956,000 +20.0
27,306.000
3,513,300 +9.5
3,847,000
6.134,201 -3.8
5,901,597
+9.5
43,496,996
47,659.021
2,777,755
2,899,375 -4.2
10,907,461
9,863,810 +10.0
7,062,638
5,883,859 +20.0
+7.5
1,559,994
1,449,901
1,900.829
1,712,386 +11.0
779,592,948 721,963,369 +8.0
1,335,523
1,507.407 -11.4
5,977,987
5,524,555 +8 2
4,213,746
+1.7
4,142,921
3,086,471
2,887,907
+6.9
1926.
1925.
$
253,057
961,938
200.321,245
9,752.681
2,734,465
3,679,440
25,598,000
3,164,400
6,122,166
42,724,549
2,563,562
10,904,257
6,428,452
1,398,604
1,733,307
729,266.929
1,354,096
5,004,955
3,853,415
2,856,962
204,958
892,590
188,327,690
7.928,962
2,342,170
2,906,442
17,336,000
3,160,000
5,256,647
38,208,163
2,692,017
12,407,626
6,497,296
1,398,443
1,616,084
676.492,827
1,473,436
4,680,831
3,239.262
2,722,930
Total(20 cities) 1,142,856,418 1,034,653,305 +10.4 1,060,676,460
979,724,374
Eighth Federa I Reserve Dia trict-St. Lo
6,252,453
6,676,298
Ind.-Evansville
156.300,000 142,900,000
Mo.-St. Louis_ _
43,666,923
37,699.670
Ky.-Louisville_
355,440
270,560
Owensboro_ _ _ _
21,206,085
24,187,376
Tenn.-Memphis
14,280,672
13,137,932
Ark-Little Rock
312,774
389,337
III.-Jacksonville
1.630,644
1,467,491
Quincy
+6.8
+9.4
+15.8
+31.4
+12.3
+8.7
-19.7
+11.1
5,881.741
150,200,000
35,386,607
293,961
20.919,475
13,212,695
458,382
1,495,558
5.650,999
140,100,000
31,894,325
280,909
18,450,869
11,413,643
379,176
1,454,786
226,304,819
Total (8 cities) _
244.428,836
+8.0
227,848,419
209,624.707
Ninth Federal Reserve Die rice -Minn eapolis
8,196,547 +7.5
8,704,119
Minn.-Duluth_ _
86,798,205
72,902,191 +19.1
Minneapolis_ _ _
29,362,628 +8.4
31,832.169
St. Paul
1,988,424
1,867.708
+6.4
N. D.-Fargo _ _ _
1,425,650
1,188,707 +20.0
S. D.-Aberdeen
681,253
540,042 +26.1
Mont.-Billings
3.318,000
2,518,000 +31.8
Helena
8.284,933
76,146,160
31,599,739
1,847.427
1,476,662
482.738
2,769,248
8,042,583
78,364.737
29,155,204
1,735.562
1,271,330
644,292
2,756.412
116,575,823 +15.6
122,606,907
121,970,126
Tenth Federal Reserve Die trict-Kens as City
446.439 -12.7
389,776
Neb.-Fremont
408,358 +19.5
487,950
Hastings
4.763,113
4,776,999
Lincoln
40,348,039 +13.7
45,868,090
Omaha
+11.1
.
Kan.-Topeka _
.
8,637,674 -0.9
8.563,8501
Wichita
Mo.-Kan. City. 138,017,372 143,148.203 -4.9
7,157,530
6,289,606 +13.8
St. Joseph- - 28,589,601
28,524,215
Okla.-Okla.City
1,087,541 --13.0
1,162,999
Colo.-Col. Elms.
a
a
a
Denver
1,302,617 +11.3
1.450,320
Pueblo
347,328
442.578
4,230,371
40,592,831
3,321,006
7,457,86.5
130,922,449
7,518,607
26.678.571
1,052,075
a
1,278,848
445.365
524,852
4,740,050
40,756.750
3,230.015
7,471,021
125,746,657
6,845,789
24,585,377
1,138,423
a
1,136,179
Total(7 cities) _
134,747,820
237.980,216
-0.3
223,843,429
216,629,477
Eleventh Fede rat Reserve District-Da Ilas1,641,196 -6.8
1,529,669
Texas-Austin _
+0.5
48,674,243
48,440.831
Dallas
+1.6
13,682,313
13,897.152
Forth Worth_ _
7,002,000 -30.9
4,834,000
Galveston
4,377,175 +18.3
5,199,880
La.-Shreveport-
1,447,529
45.565,434
12.362,567
8,968,000
4.300.073
1,729,572
40,554.414
10.222,974
6,118,606
4,741,715
-1.3
73,143,603
63.367,363
Twelfth Feder at Reserve D istrict-San Franci
46,720.204 +10.6
51,680.930
Wash.-Seattle_
+6.8
12,452,000
13,300,000
Spokane
1,433,358 -12.3
1,257,353
Yakima
38,333.207
45,391,090 -15.5
Ore.-Portland_ _
17,512,580 +0.3
17,579,703
Utah-S. L. City
3,239,098 +6.5
3,449,779
Cal.-Fresno_ _ _ _
7.718,288 +12.2
8,657,765
Long Beach..
250,658,000 107,201,000 +27.1
Los Angeles_
18,645,128 +29.6
24,158,360
Oakland
7,415,708 +16.6
8,644,292
Pasadena
7,085,522
+0.2
7.101,304
Sacramento _
4.808,009 +18.8
5,710,746
San Diego_ __ _
San Francisco_ 287,091,000 180,372,000 +51.6
3,213,904
2,21:1,708 +45.2
San Jose
1,398,013 +28.7
1,798.817
Santa Barbara.
2,164,543 +11.4
2,411,052
Santa Monica _
2,924,400 -6.4
2,738,500
Stockton
45,122,098
12,373,000
1,261,444
39,991,831
17,717,468
4,010,073
7,041,559
167,978,000
20,974.888
6,673,708
8,143,171
5,667,934
170,924.000
2,554,135
1,325,424
2,501,070
2,745,400
40.006,753
10,675,000
1,388,924
39,293,039
15,844,119
2,669,887
6,627.731
153,408,004
19,798,568
5.790,159
8,293,599
4,367.532
185,471.739
2,274,930
1,166,724
1,990,346
2,930,300
Total(12 cities)
Total(5 cities).
237.714,303
74,134,944
75,143,615
Total (17 cities) 727,784,712 567,695,549 +28.2 526,006,103 501,997.330
Grand total (129
13,630162557 10,605730814 +28.59,664,780,008 9,332,280,886
cities)
Outside New York 4.847,917,149 4.450,281,574
+8.9 4.342,219,941 4,129,853,282
Week Ended May 17.
Clearings atInc. or
Dec.
1928.
1927,
1928.
1927.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William_ _ _ _
New Westminster
Medicine Hat_ _ _
Peterborough....._
Sherbrooke
Kitchener
Windsor
Prince Albert_ _ _ Moncton
Kingston
Chatham
Sarnia
$
206,540,396
168,321,231
76,442,247
20,211,165
9,265,156
6,013,963
3,513,317
6,568,947
11,963,967
3,010,927
2,682.085
3,899,453
6,950,030
5,489,967
616,882
863,830
2.415,011
1,037,114
1,333,864
980,057
845,437
471,436
8.56,974
040,242
1.242,033
5,505,917
386,692
062,544
831,590
835,608
730.738
$
125,281,355
131,570,241
44,695,375
17.704.370
8,324,125
6,252,129
2,999,106
5.733,088
6,649,731
2,863,837
2,478,451
3,344,206
5,408.456
4,288,522
628,012
564,850
1,948,950
1.123,987
1,171,025
1,000,659
826,324
321,810
887,531
1.018,472
1,135,289
5,686,733
377,077
815,082
866,289
878,604
732,162
Wo
+64.9
+20.3
+71.0
+14.1
+11.3
-3.8
+17.1
+14.6
+79.9
+5.1
+8.2
+16.6
+25.5
+2.8
-1.8
+52.9
+23.9
-7.7
+13.9
-2.1
+2.3
+46.5
-3.4
-7.7
+9.4
-1.6
+2.5
+18.0
-4.0
-4.9
-0.2
$
107.871,184
105,024,000
53,810,860
16,191,511
7,386,074
6.293,908
2,6.57,694
5,183,547
6,404,324
2,579.992
2,469,676
3,125,882
4,624,454
4,456,155
640,024
537,624
1,836,716
1.066,912
1,038,768
1,197,655
692.908
288,755
802,476
1,010,907
1,021,429
4,937,046
403,611
885,061
705,643
8
91,095,461
92,273.808
42,727,536
14,982,826
6,929,690
4,677,694
3,895,017
4,837,432
5,418,627
2.494,926
1,987,255
2,509,299
4,420,549
3,097.391
639,043
. 513,985
1,409,179
1,096,243
1,203,172
1.022.280
647,315
289,949
1,815,996
663,382
899,524
3,386,298
309,888
818,053
675,120
r,...1 pl, .41.10441
,
541 RIR 590
357 /47Q RIR
4-30.8
345.337.996
296.634.038
ending Saturday
a Manager of clearing house refuses to report clearings for week
MAY 26 1928.]
FINANCIAL CURONICLE
3251
THE ENGLISH GOLD AND SILVER MARKETS.
est attaches to the details of available cash and the gross and
We reprint the following from the weekly circular of net debt on that date, we append a summary thereof, makns with the same date in 1927.
Samuel Montagu & Co. of London, written under date of ing compariso
CASH AVAILABLE TO PAY MATURING OBLIGATIONS.
May 9 1928:
Mar. 31 1928. Mar. 31 1927.
GOLD.
The Bank of England gold reserve against notes amounted to £159,315,960
on the 2nd inst. (as compared with £159,164,165 on the previous Wednesday), an increase of £5,409,645 since April 29 1925, when an effective
gold standard was resumed.
In addition to the small amount of South and West African gold available
In the open market this week, there was a parcel from an outside source,
which brought the total to about £150,000. The whole of this amount
was disposed of, India and the Trade being the principal buyers.
The following movements of gold to and from the Bank of England have
been announced, showing a net influx of £1,000,000 during the week under
review:
May 3. May 4. May S. May 7. May 8. May 9.
Received
Nil
Nil £500,000
Nil £500,000
£5,000
Withdrawn
Nil
Nil
Nil
Nil
Nil
5,000
The receipts on the 6th and 8th inst. were in sovereigns "released
from
eet aside account South Africa".
The following were the United Kingdom imports and exports
of gold
registered in the week ended the 2nd inst.:
Imports.
Exports.
Russia (U. S. S. R.)
£550,100 Germany
£10,650
U. S. A
300,203 France
45,102
Ecuador
200,000 Switzerland
100,820
British South Africa
774,754 British India
181.265
Other countries
2,269 Other countries
24,255
£1,827,326
£362.092
CURRENCY.
A bill to place the issue of one pound and ten shilling
notes in the hands
of the Bank of Englaad was promulgated on the 3rd
inst. The measure is
likely to be shortly in force.
SILVER.
Further firmness has been manifest in the silver
market owing to sustained China purchases attributable to the critical
conditions obtaining in
that country. The lapse in the yen exchange, following
the news of Japanese intervention in China, was doubtless an added
incentive to speculative
buyers. Although some China sales have been effected
-mostly bulls realizing, the buying far outweighed such offerings and
prices have risen rapidly.
The Indian Bazaars have not been active here.
America has contributed to
the firmness of the market by sending buying orders on
most days, but the
enhanced rates of to-day have evoked some selling from
the same quarter.
The prices fixed to-day, 27.9/16d. for cash and
27.3/8d. for two months'
delivery are the highest quoted since February 5
1927.
It is announced that the Government of India has sold
as bullion about a
crere of silver rupees. This Government sale, as
that of last year, was
made on a firmish market and for a special purpose (which
otherwise might
have imparted still snore strength). Being effected,
the operation is not
to be construed as a "bear point", for the Government
is not likely to
enter in a policy of pressing silver for sale on
an unwilling market.
The following were the United Kingdom
imports and exports of silver
registered in the week ended the 2nd inst.:
s••• •
Imports.
Exports.
U. S. A
£12,622 Egypt
£16,900
Other countries
6,312 BritishIndia
160,650
Other countries
14,523
,
r£18,934 ' PR7/4•1144.711 411311M
£192,073
r
INDIA:CURRENCY -RETURNS.111"
...4 . _
7:. _"giiiitv.
P7In1Lacs of RupeesApril 15.
April 22:
-April 36.
Notes in circulation
18554
18511
18278
Silver coin and bullion in India
10505
10462
10277
Silver coin and bullion out of India
Gold coin and bullionln India
2976
§§6
5'io
Gold coin and bullion out of India
Securities (Indian Government)
3796
ar75
S-9§
Securities (British Government)
377
377
377
Bills of exchange
900
900
750
The stock in Shanghai on the 5th inst.
consisted of about 49,900,000
ounces in sycee, 90,900,000 dollars, and 940 silver bars,
as compared with
about 53,000,000 ounces in sycee, 89,100,000 dollars
and 1,860 silver bars
on the 28th ult.
Quotations during the week:
-Bar Silver per or. std.- Bar
Cold
Cash.
Two Mos.
per or. Fine.
May 3
2650.
2654d.
84s. lid.
May 4
26 15-16d. 26 13-16d. 84s. Ild.
May 5
2650.
26(d.
84s. 11d.
May 7
27d.
26 13-16d. 84s. 1154d.
May 8
2734d.
26
15-16d. 845. 1154d.
May 9
27 9-16d.
27
fl
i d.
84s. 1154d.
Average
27.021d.
26.864d.
84s 11 2d
The silver quotations to-day for cash and two months'
delivery are
respectively 13/16d. and 3/4d. above those fixed a week
ago.
ENGLISH FINANCIAL MARKETS-PER
CABLE.
The daily closing quotations for securities, &c., at
London,
as reported by cable, have been as follows the past week:
Sat.,
May 19.
Silver, per oz_d 28
Gold,per fine oz 848.11d.
Consols,2%%_
British, 5%___
British, 454%_
French Rentes
(in Paris) _fr_
French War L'n
(In
----
Mon.,
Tues.,
1Vect.,
Thurs.,
May 21. May 22. May 23. May 24.
285f
28%
2811-16 283.4
-id. 845.113-46. 840.114d. 84s.11d.
845.113
563-1
5654
565f
553.4
1003.4
100%
100%
10034
97
97
97
97
Fri..
May 25.
289-16
848.11d.
56%
10034
97
60.50
68.60
69.40
69.15
68.70
89.80
89.65
90.00
90.15
90.30
The price of silver in New York on the same days has been:
Balance end month by daily statement, &c
Add or Deduct-Excess or deficiency of receipts over
or under disbursements on belated items
Deduct outstanding obligations:
Matured interest obligations
Disbursing officers' checks
Discount accrued on War Savings Certificates___ _
Settlement warrant checks
444,816,761
$
423,336,087
-7,183,466
-1,797,215
437,633,295
421,538,872
36,154,603
75,406.651
6.720.025
2.773,952
43,346,934
77,436.565
8,257,395
2,404,140
Total
121,055,231
131,445,034
Balance, deficit (-) or surplus(+)
+316,578,064 +290.093.838
INTEREST-BEARING DEBT OUTSTANDING.
InterestMar. 31 1928. Mar. 31 1927.
Title of LoanPayable
25 Consols 01 1930
Q.-J. 599.724,050
599.724.050
2s of 1916-1936
Q.-F.
48,954,180
48,954,180
2s of 1918-1938
Q.-F.
25,947.400
25.947.400
3s of 1961
Q.-M.
49,800,000
49,800,000
35 Conversion bonds of 1946-1947
Q.-J.
28,894,500
28,894,500
Certificates of Indebtedness
J.-J. 1,255,750,700 1,123,235,000
33-45 First Liberty Loan, 1932-1947
J.-J. 1,397,686,700 1.397,687,100
45 First Liberty Loan, converted
J.-D.
5.155.650
5455.700
445 First Liberty Loan,converted
J -D. 532,820,200
532,874,350
44s First Liberty Loan, second converted
J.
-D.
3,492,150
3,492,150
4s SecondLiberty Loan,1927-1942
M.-N.
20,848,250
445 Second Liberty Loan converted
1,751,292.550
445 Third Liberty Loan of 1928
M.-S. 1,462,683,150 2,158,006,900
44B Fourth Liberty Loan of 1933-1938
A.-0. 6,294,047.100 6,314.463,950
44s Treasury bonds of 1947-1952
762,320.300
763,948,300
4s Treasury bonds of 1944-1954
1,042.401,500 1,047,087,500
33-4s Treasury bonds of 1948-1956
491,212,100
494,898,100
3%5 Treasury bonds of 1943-1947
494,704,750
4s War Savings and Thrift Stamps
162,698,397
335.961,163
2%s Postal Savings bonds
5.-5.
14,812,380
13,229,660
5345 to 9345 Treasury notes
J -D. 2,960.009.600 2,011,259,150
Aggregate of interest-bearing debt
17.633.114,807 18.726,759,953
Bearing no interest
237.424.445
240.036.359
Matured, interest ceased
66,322.205
41,588,780
Total debt
94 19,008,385.092
Deduct Treasury surplus or add Treasury deficit__a17,620.283,3
+316,578,064 +290.093.838
Net debt
517,303,705.330 18,718,291,254
a The total gross debt Mar. 31 1928 on the basis of daily Treasury statements
was $17.936,816,998.21, and the net amount of public debt redemption and
receipts
In transit. &c., was $44,459.10.
S No deduction is made on account of obligations of foreign Governments other
or
Investments.
aDournvertial andAtiscenaneonsEi.ews
National Banks.-The following information regarding
national banks is from the office of the Comptroller of the
Currency, Treasury Department:
APPLICATIONS TO ORGANIZE RECEIVED.
May 16-The University *National Bank of New York, N. Y.____ Capital.
Correspondent, Nathan D. Perlman, 475 5th Ave., New $350,000
York, N. Y.
May 18-The Central National Bank of Newton, Mass
Correspondent, Jelin D. Babbage, 85 Devonshire St., 200,000
Boston, Mass.
May 18-The First National Bank oi Douglasville, Ga.
25,000
Correspondent, J. R. Hutcheson, Douglasville, Ga.
May 19-The Briarcliff Manor National Bank, Briarcliff Manor,
N. Y.
75,000
Correspondent, James L. Selfridge, Briarcliff Manor,
N. Y.
APPLICATION TO ORGANIZE APPROVED.
May 18-The Palatka Atlantic National Bank, Palatka, Fla._
Correspondent, J. AL Baker, e-o Atlantic National Bank, $100,000
Jacksonville, Fla.
CHARTERS ISSUED.
May 15-The First National Bank in Temple, Texas
$100,000
President, F. F. Downs; Cashier, L. Burr.
May 16-TheIndustrial National Bank of New York, N. Y._
1,500,000
President, William I. Sirovich ; Cashier, W. E. Logan.
May I7-The La Jolla National Bank of San Diego, Cal.
200,000
President, Karl Kenyon; Cashier, Deane M. Plaister.
May 19-The Commercial National Bank of Lafayette, La._
100,000
President, T. L. Evans; Cashier, Frank Debaillon.
CHANGE OF TITLE.
May 16-The Milford National Bank, Milford, Mass., to "The
Milford National Bank and Trust Company."
VOLUNTARY LIQUIDATIONS.
May 14-The First National Bank of Yreka, Cal.
$50,000
Effective April 24 1928. Lig. Agent, Edw. C. Aldwell,
San Francisco, Cal. Absorbed by Bank of Italy National Trust and Savings Asaociation, San Francisco, Cal
May 15-The Waynesboro National Bank, Waynesboro, Va.__
50,000
Effective May 14 1928. Lig. Comm., C. M. Lambert,
S. H. Hall and G. II. Branaman, Waynesboro, Va. Absorbed by The Citizens Bank of Waynesboro, Va.
BRANCHES AUTHORIZED UNDER ACT OF FEB. 25 1927.
May 16-The National City Bank of New York, N. Y.
Location of Branch, vicinity of 52 Wall St., Borough of
May 16-The Public National Bank and Trust Company of New
York, N. Y.
Locations of Branches: Vicinity of Kingsbridge Road
and Davidson Ave., the Bronx; vicinity of White Plains
Road and 2330 St., the Bronx; vicinity of Northers
Blvd. and 85th St., Queens.
Auction Sales.-Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
62%
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week:
Public Debt of United States-Completed Returns
By Adrian H. Muller & Sons, New York:
Shares. Stocks.
Showing Net Debt as of Mar. 31 1928.
3 per sh. Shares. Stocks.
$ per sk.
2 Gulf. Fla. & Ala. Ry. Co. coin.;
100 Winchester-Simmons Co.pref.- 54
150 Victor Motor Co., par $1; 12
The statement of the public debt and Treasury cash holdSundry accts. rec. aggreg. approx.
E. Palestine Rub. Co.(with stk.
$1.972.06
$10 lot
ings of the United States as officially issued Mar. 31 1928,
bonus bd. att.) par 525:115 Dunn
5000 Jefferson S'west. RR. Co., Ill.
Pet. Corp., par $1; 100 Smith
delayed in publication, has now been received, and as inter..
Corp
$1000
lot
Motor Truck Cor. corn. par 510_52 lot
Silver in N.Y., per oz. (eta.):
6254
Foreign
61
6251
62%
63%
By R.L. Day & Co., Boston:
$ per sh.
Shares. Stocks.
1 National Shawmut Bank_ -380 ex-rights
175
1 Boston National Bank
510-51134
45 First National Bank
441%
100 United States Trust Co
5 Merchants Nat. Bank, Salem,
203
Par 850
124%
14 Berkshire Cotton Mfg.Co
14 Naumkeag Steam Cotton Co___ _154
9-103.4
55 Ipswich Mills pref
12834
15 Farr Alpaca Co
112
25 Bates Mtg.Co
205
25 Boston Mfg. Co., pref
126%
2 Nashua & Lowell RR
3 Old Colony Trust Associates, w.1_ 5234
7134
10 American Mfg. Co., pref
5 Merrimac Chemical Co., par $50- 9634
250 J. R. Whipple Corp. common
1 35-100
v. t. c
10734
20 American Glue Co., pref
40 Nokol Automatic Heat Corp.,
Preferred, Buffalo; 40 common__ 6
5 Merrimac Chemical Co, par $50_ - 9635
[Vot. 126.
FINANCIAL CHRONICLE
3252
$ per oh.
Shares. Stocks.
10 Heywood Wakefield Co.. 1st pre82-82%
tarred
280
10 U.S. Envelope Co., corn
118
200 American Meter Co
75 U. S. Envelope Co., corn. 278-280
7435
19 Draper Corp
5 Wm.Whitman & Co., Inc., pref.,
87% & div.
11234
2 Boston Wharf Co
1 Fall River Gas Wks., Dar $25____ 7034
1 Beverly Gas & Elec. Co., par $25_ 8736
40 Converse Rubber Shoe Co., pref.,
20 Converse Rubber Shoe Co.,
3 on pref.
common
100 Western Massachusetts Cos._ 6134
50 Fall River Gas Wks., par $25--- 7034
6734
100 Tampa Electric Co
Name of Company.
Per
When
Cent. Payable.
Books Closed
Days Inclusive.
Public Utilities (Concluded).
• P4334c June 15 *Holders of ree. May 26
Central Pub.Serv. Corp. cl."A"
July 16 *Holders of rec. June 268
2
Detroit Edison Co.(guar.)
Electric Power dr Light, pref. (guar-) - $1.75 July 2 Holders of rec. June 15
Pref. allotment ctfs. (full paid)(quar.) *$1.75 July 2 *Holders of rec. June 15
Pref. allotment ctfs. (40% paid) (QU.) *70c. July 2 *Holders of rec. June 15
*2 June 30'Holders of rec. June 29
'Illinois Bell Telex).(guar)
134 July 2 Holders of rec. June 15
Illinois Power Co.,6% pref.(quar.)- - - 134 July 2 Holders of rec. June 15
7% pref.(quar.)
K.C.Power & Light, let pfd."B"(qu.) "21.50 July 1 *Holders of rec. June 14
Kentucky Hydro-Elec. Co.Pfd •(qM.)- - - *134 June 20 *Holders of rec. May 31
*234 June 15 Holders of rec. June 1
Laclede Gas Light.corn,(quar.)
*234 June 15 Holders of rec. June 1
Preferred
Memphis Pow. dr Lt., $7 pref. (quar.)... *$1.75 July 2 *Holders of rec. June 16
*$1.50 July 2 *Holders of rec. June 16
66 preferred (quar.)
Milwaukee Elec. Ry.& L.6% pt.(au.)_
134 July 31 Holders of rec. July 200
1% July 2 Holders of rec. June 12
Montana Power,corn.(guar.)
23.4 July 14 Holders of rec. July 6
$ per Right. Montreal Tramways(guar.)
Rights.
4g National Pow.& Light, pref.(guar.)-- - $1.75 July 2 Holders of rec. June 15
15 Shawmut Associates
2 *Holders of rec. June 16
Per Cent. New England Power Co., pref.(quar.)- - *51.50 July 2
Bonds.
"Holders of rec. June 15
*31.50 July
N. F.Steam Co., $6 pref. (quar.)
$1,000 Y D Service Garage,Worces*Holders of rec. June 15
2
July
$7
*31.75
preferred (guar)
95
ter, 6345, July 1955
*81.50 July 2 *Holders of rec. June 15
Northwestern Telegraph
*Holders of rec. May 15
1
_
1-3c
58
June
pr.
Boston:
-*
1st
(mthly.)
7%
Ohio
Public
Serv.
Arnold,
By Wise, Hobbs &
$ per oh.
*50c. June 1 *Holders of rec. May 15
6% first pref.(mthly.)
$ per oh. Shares. Stocks.
Shares. Stocks.
_111
pref_
7%
2
Holders of rec. June 15
Power,
July
_
&
6234c.
Power
(quar.)__
Water
Maine
Pennsylvania
Central
99
Conn150
7 Thames Nat. Bk., Norwich,
50c. June 30 Holders of rec. June 1
Public Serv. Corp. of N.J., corn.(qu.)_ _
51034 20 New England Fisheries, pref____ 88
4 First Nat. Bank, Boston
50c. June 30 Holders of rec. June 1
Fisheries, com__ _ _ 21
pref.
England
6%
New
10
(monthly)
22634
22534Co
Trust
Exchange
12
75-6751%
7% pref.(quar.)
134 June 30 Holders of rec. June 1
9 Plymouth Cordage
1 Fed. Nat. Bank, Boston, tr.ctfs_ _260
2 June 30 Holders of rec. June 1
8% pref.(quar.)
80-8034 10 Eastern Mfg. Co., pref pf102%-102
55 Androscoggin Mills
Pow. Assn.,
July 1 June 24 to July 1
Okla., corn.(qual.)... 2
of
Serv.
Co.
England
Pub.
New
36
40
48 Arlington Mills
%
_52%-52
I_
w.
July 1 June 24 to July 1
18.
Assn.
(quar.)
134
lien
stock
prior
Col.
7%
834 110 Old
10 Ipswich Mills, prof
200
134 July 1 June 24 to July 1
6% prior lien stock (quar.)
Mtg. Associates
Ludlow
17
95-9534
Manufacturing
67 Pepperell
5234-53 Public Serv. Elec. & Gas, 7% pt. (au.) '134 June 30 "Holders of rec. June 1
Peoples Trust
First
units
16
37
20 Nyanza Mills
•13i June 30 *Holders of rec. June 1
81
Six per cent preferred (quar-)
15334 10 Safepack Mills, pref
12 Naumkeag Steam Cotton
51
Rochester Gas& Elec. pref."B"(qual.). •134 June 1 *Holders of rec. May 14
503j 37 Consolidated Wire Co
26 Nashua Mfg. corn
*144 June 1 *Holders of rec. May 14
lot
v.t.c.$150
St.
Spencer
C
D.
&
series
(guar.)
Wickwire
Preferred
5,012
76
20 Newmarket Manufacturing
2
July 2 Holders of rec. June 40
Paper, pref., and 30
Savannah El. & Pwr. deb.ser A.(qu.)_ _
240 Gen. Alloys Co.01. A. pret-__634-734 36 Robertson
$21 lot
174 July 2 Holders of rec. June 40
B
ser.
(quar.)
common
Debentures,
of
6
234
500 Shawmut AEWII, W I
$2
(Mich.),
Co.
July 10 Holders of rec. June 23
_
_
50c.
Pow.,
&
corn.(au)
Shawinigan Water
750 Contact Cop.
25 Attleboro Steam & El. v. 8. c--104
July 1 *Holders of rec. June 15
Southwestern Gas& Elec.8% pfd.(qu.)_ *2
per sh. paid in 250.-assessment
46
9 Mass. Util. Inv.'Tr., pref
Utah
Nev.
July 1 "Holders of rec. June 15
Cons.
•134
650
pref.
paid:
7%
(quar.)
I
No.
11%
17 Mass. ULU. Inv. Tr., corn
(Va.): $25 do cv. 1st mtge.
Southern Calif. Edison orig. pf.(qu.)__ - "50c. July 15 *Holders of rec. June 20
Corp.
69
___
undep_
Light.
Gas
6 Springfield
1lot
41
July 15 "Holders of rec. June 20
1927$
•3434c
series
Preferred
"C"
June
(quar)
6s,
7234-7334
60 Draper Corporation
*31.50 July 1 *Holders of rec. June 8
Union Traction (Philadelphia)
5 N.E. Creamery Prod., 1st pret_2:4
30 Quincy M.C. St. dr Whse., corn_ 40
Dow Mfg. Co.; 20 do
*El July 14 *Holders of rec. June 15
Gas Improvement(quar.)
United
Babson10
50
10 Cape Cod SS. Co
134 June 20 Holders of rec. May 31
Virginia Elec.& Power,6% pfd.(qU)--1st pref.; 4 do 2d pref
32
10 American Glue, corn
134 June 20 Holders of rec. May 31
7% pref.(quar)
Purchase warrants for 15 Waiten lot
45 No.Boston Lt.Prop.,corn. v.t.c. 91
prior pref. and
Corp.
Mignon
6334
10 Fall River Elec. Lt.. under,
250.10
Banks.
150 Welte Mfg. Corp
82
22 Heywood-Wakefield, let pref..
Per Cent. United Capitol Nat.Bk.de Tr.(qu.)
$1.25 June 2 Holders of rec. May 31
Bowls.
6'Medal units First Peoples Trust__ 334 8.6.000 Int. Cotton Mills 7s, due
10 Boston C.of C.Realty Tr.,2d pf. 134
934%
Fire Insurance.
Dec. 1929
1034
pref
2d
65 Fairbanks Co..
June 16 Holders of rec. June 1
Universal Ins.Co.(guar.)
Barnes & Lofland, Philadelphia:
By
$ per oh. Shares. Stoc.ts.
Shares Stocks
10 County Title & Trust Co., Ard908
5 Provident Trust Co
160
more, Pa
907
43 Provident Trust Co
10 Camden Safe Dep. dr Tr. Co__ __240
3034
Co
Coal
Valley
160 Lehigh
Tr. Co..
Jersey-Parkside
West
4
25 Girard Ave. Title & Tr. Co..
350
Camden
323
Par $50
12 Farmers & Mechanics Tr. Co..
325
150
1534 Hamilton Trust Co
Pa
Chester,
West
50 Girard Fire de Marine Ins. Co_ 210
157 Bankers Securities Corp., pref.,
250
20
5 City Nat. Bank & Trust Co
paid)
(25%
$50
Par
5 Drovers & Merchants National
8 Green Sr Coates Sta. Pass. Ry.___ 7334
188
Bank
17534
Sts. Pass. Ry
3d
&
2d
3
181
Bank
74%
19 Overbrook Nat.
15 Continental Pass. Ry
786
51
5 Penn National Bank
9 Catawissa RR. let pre'
915
5 Corn Exchange Nat. Bank
Sciver Co., common_ _115
Van
B.
J.
10
395
34g
$50....
10 Union Bank dv Trust Co
par
corn.,
Bourse,
4 Phila.
394
34
40 Union Bank & Trust Co
8 Phila. Bourse. corn., par $50___.
5 Bala-Cynwyd (Pa.) Nat. Bank_ -150
12 Land Title Bldg. Corp.. par 850-20034
10
17 Springfield Nat.Bank, Delaware
Co
10 New Way Laundry
150
County, Pa
1 Library Co. of Phila., $8 dues 1
.5 North Philadelphia Trust Co___-467
unpaid
65
15 North Phila. Tr. Co., par $50-466
50 Bankers Bond & Mtge
810
5 Market St. Title dr Trust Co..701
25 Phila. National Bank
pref.,
Corp.,
par $50
25 Bankers Securities
20
20 Market St. Title dr Trust Co..701
25% paid
Par $50
7 Bankers Securities Corp., pref., 20
Co..
Trust
dr
Title
St.
Market
5
25% paid
700
100
par $50
15 Broad St. Trust Co
20 Colonial Trust Co.. Par M.
Tr. Co_ 398
312 ex-rights 22 Broadway Merchants
$ per Right.
Rights.
114
40 Colonial Trust Co., Par $50.
310 ex-rights 10 Colonial Trust Co
115
1-3 Colonial Trust Co
118
16 Security Title & Trust Co.. 68
2-3 Colonial Trust Co
234
Co__
Casualty
Par $50
50 Commonwealth
101
10 Broad St. Tr. Co., par $50
50 Commonwealth Casualty Co_ _ _ _ 234
100
Co.- 2
45 Broad St. Tr. Co., par $50 __ _140
Casualty
Commonwealth
400
2
10 Mortgage Security Trust Co_
12534 166 2-3 Commonwealth Cas. Co....
Per Cent.
50 Bankers Trust Co., par $50
Bonds.
_125 Si
let
Co.
150 Bankers Trust Co., par $50___
Hotel
Charles
$5,000 St.
25 Belmont Trust Co., par $50.._.163
78185
3 Integrity Trust Co., Par $50---19h4u5ylkill Traction Co. let
8.Sc
,510
$16
-778
834
2 Integrity Trust Co.. par $50-58, 1943
10 Lancaster Ave.Title & Trust Co.,104
$20,000 bonds and mtges. of Isaac
Bahia & Bender Cons.
Par $50
to
Levitsky
8 Lancaster Ave. Title & Trust Co..103%
Co. at 6% on Nos. 1124-1126Par $50
1128 and 1130 N. 40th St.,
7 Frankford Trust Co., par $50..530
Phila. (for the Southwark Nat.
&
Title
$1,000 lot
30 Haverford Township
Bank)
60
. Trust Co.. par $50
Miscellaneous.
600. June 15 Holders of rec. June 1
Acetol Products, cl. A (quar)
25c. June 1 Holders of rec. May 21
Allen Industries, Inc., common (quar.).
75c. June 1 Holders of rec. May 21
Preferred (guar.)
Alliance Investment Corp., com.(au). 3734c. July 2 Holders of rec. June 15
500. Mar. 31 Holders of rec. Mar. 15a
Aluminum Manufactures, corn. (guar.).
50c. June 30 Holders of rec. June 150
Common (qual.)
50c. Sept. 30 Holders of rec. Sept.15a
Common (quar.)
50c Dec. 31 Holders of rec. Dec. 15a
Common (quar.)
134 Mar. 31 Holders of rec. Mar. 150
Preferred (quar.)
134 June 30 Holders of rec. June 15a
Preferred (guar.)
1% Sept. 30 Holders of rec. Sept.15a
Preferred (quar.)
134 Dec. 31 Holders of rec. Dec. 15a
Preferred (quar.)
American Art Works, corn. pref. (quar.) 134 July 15 Holders of rec. June 3
'50c July 2 "Holders of rec. June 1
Amer. Bank Note, corn. (quar.)
'75c July 2 *Holders of rec. June 1
Preferred (guar.)
•134 June 30 'Holders of rec. June 2
Amer. Chain, pref. (quar.)
350 June 30 Holders of rec. June 1
Amer. Colortype, corn. (quar.)
134 June 1 Holders of rec. May 2
7% preferred (quar.)
25c. July 2 Holders of rec. June 1
Amer. Home Products (monthly)
July 2 "Holders of rec. June 1
*El
Amer. Safety Razor (quar.)
'250 July 2 "Holders of rec. June 1
Extra
July
1 Holders of rec. May 3 a
1234c
preferred
Thread,
American
134 July 2 Holders of rec. June
Armour & Co. (III.), pref. (quar.)
134 July 2 Holders of rec. June
Armour & Co.(Del.), pref. (quar.)
1% June 1 Holders of rec. May 1
Asch. Limited, pref. (quar.)
63c. Aug. 1 Holders of rec. July 1
Associated Dry Goods, corn.(quar.)...
134 Sept. 1 Holders of rec. Aug. 1
lst preferred (guar.)
let
134 Sept. 1 Holders of rec. Aug. 1
2nd preferred (quar.)
550c. June 1 *Holders of rec. May 1
Atlas Portland Cement, corn. (quar.)
June 15 Holders of rec. June
2
Auto-car Co., pref. (quar.)
Auto Strop Safety Razor,cony. el. A(qu) 768. July 2 Holders of rec. June
30 Holders of rec. June 1
June
Co.,
c.
(qu.)
6234
corn.
&Sons
(Joseph)
Bancroft
60c. July 10 Holders of rec. June 2
Beechnut-Nut Packing (quar.)
Bohn Aluminum & Brass. corn.(qual.).. *3734c July I *Holders of rec. June 1
July 30 'Holders of rec. July 1
*$1
Bon Aml Co., class A (quar.)
*50c. July 1 *Holders of rec. June 2
Class B (quar.)
30 *Holders of rec. June 2
June
1)•
662-3c
(No.
)
Co.(qu.)(interim
Bristol-Myers
*81 Sept.29'Holders of rec. Sept. 1
Quarterly
411 Dec. 31 *Holders of rec. Dec. 3
Quarterly
(r) June 30 Holders of coupon No.1 3
British Amer.'Yob., ordinary (intenm)_
250. Juno 1 Holders of rec. May 1
Brown (J. W.) Mfg.(quar.)
July 2 *Holders of rec. June 1
'134
pref.
(quar.)
Burns Bros..
*50c. Aug. 1 *Holders of rec. June 2
Bush Terminal, common (quar.)
*134 Aug. 1 *Holders of rec. June 2
Common (payable in common stock)
*134 July 16 *Holders of rec. June 2
Seven per cent preferred (quar.)
Bush Terminal Bldgs., pref. (qual.).... •134 July 2 *Holders of rec. June 1
*50c. June 20 *Holders of rec. June
By Products Coke Co.(quar.)
*75c. June 20 *Holders of rec. June
Extra
June 25 *Holders of rec. June
*31.50
&
Calumet
(quar.)
Mining
Arizona
By A. J. Wright & Co., Buffalo:
$ per sit.
Stocks.
Shares.
50c. June 15 Holders of rec. May 3
$ per oh.
130. Calumet & Heels Congo'. Copper(au)
Shares. Stocks.
134 June 30 Holders of rec. May 3
1,000 Gold Hill Minrs, par $1
11c.
Cement,
Canada
pref.
(quar)
$1_
par
Ltd.,
M.,
1,000 Potter-Doal
5 Labor Temple Assn. of Buffalo$1 lot Celanese Corp. of Amer.. prior pref.(qu) 134 July 2 Holders of rec. June 1
100 Candy Products Corp., par lot
336 June 30 Holders of rec. June 1
dr Vicinity. Inc., par $5
Seven per cent first preferred
$1
$2
Chicago Mill & Lumber, pref.(quar.) _ "134 July 1 Holders of rec. June 2
July 2 Holders of rec. June 2
"25c.
Chicago Yellow Cab (monthly)
DIVIDENDS.
"250. Aug. 1 "Holders of rec. July 2
Monthly
Sept. 1 *Holders of rec. Aug. 2
•250.
the
In
Monthly
separate tables.
July 16 *Holders of rec. July
*5
Dividends are grouped in twodividends
Stores Co., class B
announced the City
July 2 Holders of rec. June 1
$3
the
all
(quar.)
International
Coca-Cola
together
first we bring
1 *Holders of rec. June 2
July
in
*134
table,
Columbia Steel (quar.)
with a second
of rec. June 1
current week. Then we followpreviously announced, but Conde Nast Publications, corn. (guar.). 60c. July 1 Holders of
rec. June 1
30'Holders
June
*50c.
dividends
Co.,
Milner
&
corn.
(guar.)
Crowley
which we show the
rec. Juae 1
of
*Holders
1
Crown Willamette Paper, 1st pref. (On.) *134 July
which have not yet been paid. week are:
•134 July I *Holders of rec. June 1
2d preferred (quar.)
June
rec.
of
this
Holders
15
June
2
Derk Manufacturing, pref. (quar.)
The dividends announced
Dinkier Hotels, Inc., class A (quar.) _ -- *50c. June 1 *Holders of rec. May 2
rec. June 1
of
Holders
2
July
(quar.)..
corn.
134
Glass,
Ltd.,
Dominion
Closed
Books
When
Per
194 July 2 Holders of rec. June 1
Days Inclusive.
Preferred (quar.)
Cent. Payable.
Name of Company.
Du Pont(E.I.) de Nem.,corn.(quar.).. 82.50 June 15 Holders of rec. June
50c June 15 Holders of rec. June
Common (extra)
Railroads (Steam).
July 5 Holders of rec. June
$3
May 31
Common (extra)
23.4 June 30 Holders of rec. June 15
July 25 Holders of rec. July 1
134
Boston & Albany (quar.)
(quar.)
rec.
Stock
of
Debenture
July 1 "Holders
*134
(au.).
pref.
Northern,
de
Gulf, Mobile
"El June 1 *Holders of rec. May 2
Durham Duplex Razor, prior pf. (qtr.)
June 30 Holders of rec. June 15
Missouri-Kansas-Texas. pref. A (qual.). 134 July 2 *Holders of rec. June 4
(qtr.) (No. 1) "134 June 15 "Holders of rec. June
pf
1st
&Mid
Co.
Eltingon
N.Y. New Haven & Hartf., pref.(quar.) •134 July 2 Holders of rec. June 5a Electric Controller & Mfg., corn.(qu.)_ _ *$1.25 July 2 *Holders of rec. June 2
1%
Pere Marquette,corn.(quar.)
•16c July 17 "Holders of rec. July
60
134 Aug. 1 Holders of rec. July lia Fifth Ave.Bus.Secur.(quar.)
Prior preference(guar.)
"750 July 2 *Holders of rec. June 1
July
Fleishmann Co.,corn.(guar.)
134 Aug. 1 Holders of rec.
Five per cent. pref.(guar.)
•134 June 30 *Holders of rec. June 1
Florsherm Shoe, pref.(quar.)
•500. July 12 Holders of rec. June 21
Reading Co., 2d pref. (quar.)
334 June 1 Holders of rec. May 2
Folmer Graflex Corp., pref
25c July 2 Holders of rec. June 1
Forhan Co.,corn,(quar.)
Public Utilities.
404 July 2 Holders of rec. June 1
Class A (quar.)
15 Holders of rec. May 31
June 1
to
Assoc.Telep. Utilities $7 Pf• (guar.)-- - $1.75 June 15 Holders of rec. May 31
June 15 June 2
pref
Co.,
334
Sec.
F.)
French
(Fred.
$1.50 June
$6 preferred (guar.)
3% June 16 June 2 to June 1
French (Fred. F.) Investing, prof
*134 July 2 'Holders of rec. June 9
Boston Elev.Ry.,cond.(quar.)
June 1 "Holders of ree. May 2
•1
9
pref
June
Corp..
of
Holders
Box
rec.
General
2
July
*4
of rec. June11
First preferred
General Railway Signal, corn.(quar.)... *$1•25 July 1 *Holders
•334 July 2 *Holders of rec. June 9
Preferred
•40. June 10*Holders of rec. May 3
Golden Cycle Mining & Reduc
*81.25 July 2 "Holders of rec. June 7
Brooklyn Union Gas(quar.)
MAY 26 1928.]
FINANCIAL CHRONICLE
.Per
When
Cent. Payable.
Books Closed
Name of Company.
Days Inclusive.
Miscellaneous (Concluded).
Goodyear Tire &Rubber lst pfd.
- 134 July 1 Holders of ree. June 1
Preferred(guar.)
134 July 1 Holders of rec. June 1
Gotham Silk Hosiery,coin.(guar.)
62%o. July 2 Holders of rec. June 15
Grasselli Chemical, corn. (guar.)
eta
June 30 *Holders of roe. June 15
Preferred (guar.)
June 30 *Holders of rec. June 15
Great Western Sugar,corn.(guar.)
•700. July 2 *Holders of rec. June 15
Preferred (guar.)
4,144 July 2 *Holders of rec. June 15
Greene Cananea Copper
$1
July 2 Holders of rec. June 15
Gull States Steel, 1st pref.(guar.)
•1% July 2 *Holders of rec. June 15
Hall(C. M.)Lamp Co..(guar.)
*500. June 1 *Holders
rec. June 1
Hawaiian Commercial& Sugar(mthin - *25e. June 5 *Holders of
of rec. May 25
Hollinger Consol. Gold Mines
10c. June 16 Holders of rec. May 30
Hudson Motor Car(guar.)
$1.25 July 2 Holders of rec. June 11
Insuranshares.com.(guar.)
25o. June 1 Holders
rec. May 21
International Cement, corn.(quar.)--- - •$1 June 29 *Holders of
of rec. June 11
International Salt-Dividend omitted.
Intertype Corp.,com.(guar.)
'25c. Aug. 15 Holders of rec. Aug. 1
Common (extra)
200. Aug. 15 Holders of rec. Aug. 1
First preferred (guar.)
July 2 Holders of ree. Juno 15
$2
First preferred (guar.)
$2
Oct. 1 Holders of rec. Sept. 14
2nd preferred
$3
July 2 Holders of rec. June 15
Jones & Laughlin Steel, pref. (quar.)_.. *1% July 2 *Holders of
rec. June 15
Johansen Shoe, corn. (guar.)
37340. June 1 Holders of rec. May 23
Extra
1234e. June 1 Holders of rec. May 23
Johnson-Stephens-Shinkle Shoe (guar.). 500 June 1 Holders
Kelley Island Line & Transp.(quar.)_... •62340 July 2 *Holders of rec. May 15
of rec. June 20
Kennecott Copper Corp.(guar.)
$1.25 July 2 Holders of rec. June 1
Keystone Bond & Mtge, corn.
July 1
•$1
Preferred
*3% July 1
Kilburn Mills (guar.)
•134 June 15 *Holders
Lake of the Woods Milling, corn.(guar.) 80e. June 1 Holders of rec. May 31
of rec. May 25
Preferred (guar.)
134 June 1 Holders of rec. May 25
Lehigh Valley Coal Sales (guar.)
July 2 *Holders of rec. June 14
*El
Libby, McNeil & Libby, pref
•$3.50 July 2 *Holders
Liggett & Myers Tobacco, pref.(guar.). •134 July 2 *Holders of rec. June 15
of rec. June 11
Liquid Carbonic, com.(guar.)
•90e. Aug. 1 *Holders of rec. July 20
Lord & Taylor, com. (guar.)
2% July 2 Holders of rec. June 16a
Mallinson(H. R.) Co., pref.(guar.)
•134 July 2 *Holders of rec. June 21
Mathieson Alkali Wks,com.(guar.)
*$1.50 July 2 *Holders of rec. June 18
Preferred (guar.)
July 2 *Holders of rec. June 18
Mayer (Oscar) Co., 1st pref. (quar.)
June 1 *Holders of rec. May 22
2d preferred (guar.)
*2
June
1 *Holders of rec. May 22
Montreal Loan & mtge.(guar.)
3
June 15 Holders of rec. May
Mother Lode Coalition Mining
•15e. June 3 *Holders of rec. June 31
8
National Supply. prof.(guar.)
June
Holders of rec. June 20
Nat'l Automotive Fibres, pref.(No.1) *61.75 June 30
1 *Holders of rec. May 22
National Transit (guar.)
25o.
15 Holders of rec. May 31a
Neptune Meter, class A & B (quar.)__-. •50o. June
June 15 *Holders of rec. June 1
New England Bond & Mtge, pref.
June 1 Holders of rec. May 21
N.Y.Transportation (guar.)
*50e. July 16 *Holders of rec. July 2
Nichols Copper, common
s81
June 15 *Holders
Preferred (guar.)
•1,4 July 1 *Holders of rec. May 24
of reo. June 9
Northern Bakeries, Ltd.(qu.)(No. 1)
*50e. July 2 *Holders of rec. June 15
North American Provision, pref. (guar.) •144
July 2 *Holders of roe. June 9
Omnibus Corp., pref. (guar.)
$2
July 2 *Holders of rec. June 15
Otis Steel, prior pref.(guar.)
•134
1 *Holders of rec. June 15
Peoples Drug Stores. Inc., corn. (guar.) •250. July
July 2 *Holders of rec. June
Convertible pref. (guar.) (No. 1)
•144 June 15 *Holders of rec. June 8
Port Alfred Pulp & Paper. pref.
134 June 15 Holders of rec. June 1
1
Pratt & Lambert, corn. (guar.) (guar.)- •The
July 2 *Holders of rec. June 15
Pure Oil, 534% pref. (guar.)
'134
July 1 *Holders of rec. June 10
6% Preferred (guar.)
•134 July] 1 *Holders of rec. June 10
8% Preferred (guar.)
*2
Julyj 1 *Holders of roe. June 10
Q it S Co., corn. (guar.)
*500. July 15 *Holders of rec. July 2
Preferred (guar.)
•134
July 2 *Holders of rec. June 30
Rapid Electrotype(guar.)
St. Maurice Valley Corp., pref.(guar.). 3734e. June 15 *Holders of rec. June 1
134 July 2 Holders of rec. June 15
Scoville Mfg. (quar.)
Segal Lock & Hardware, com. (quiz.).. *75o. July 2 *Holders of rec. June 22
25e. June 15 Holders of rec. May 31
Preferred (guar.)
154 July 16 Holders of rec. June 30
Shattuck (Frank G.) Co.,
*50c. July 1 *Holders of roe. June 20
Shell Union 011 (guar.) (guar.)
300. June 30 Holders of rec. June 4
Sloss-Sheffield Steel & Iron, corn.
(guar.) •13„s June 2 *Holders of rec. June 9
Preferred (quar.)
r1,4 July 2 *Holders of
roe. June 20
Solar Refining
*5
June 20 *Holders of rec. May 31
South Penn 011 (guar.)
•500. June 30 *Holders of rec. June 14
Standard Chemical, Ltd
$1
Sept. 1 Holders of rec. July 31
Standard Milling, com.(guar.)
134 June 30 Holders of rec. June 18
Preferred (guar.)
134 June 30 *Holders of rec. June 18
Standard 011 (Ohio) corn. (guar.)
6234c. July 2 Holders of rec. June 8
Stanley Co. of America-dividends
om itted.
Sterling Securities, preference
(s) June 1 Holders of roe. May 22
Stromberg-Carlson Telep. Mfg.
(guar.). •25o. June 1 *Holders of roe. May 21
Swan-Finch 011 Corp., corn
•30e. June 30 *Holders of rec. June 1
Thompson Products, Cl. A & B
(guar•)-- *Mo. July 1 *Holders of zee. June 20
Class A & B (extra)
•10o. July 1 *Holders of rec. June 20
Tuckett Tobacco, corn. (guar.)
1
July 14 Holders of rec. June
Preferred (guar.)
144 July 14 Holders of rec. June 30
Union Carbide & Carbon (guar.)
$1.50 July 2 Holders of roe. June 30
1
Union Mills, corn.(guar.)
*50e June 1 *Holders of rec. May 18
United Cigar Stores, com.(guar.)
200 June 30 Holders of rec. June 8
Coln. (payable in com. stock)
fl% June 30 Holders of rec. June 8
United Grape Products, pref.(No. 1)
*334 June 15 *Holders of rec. June 5
U.S. Shares Corp.Canadian Bank stocks to abs. aer. D. 48.79e June 15
Holders of rec. May 15
Universal Pictures. 1st pref.(qu.)
2
July 2 Holders of rec. June 15
Virginia Iron, Coal & Coke, pref
234 July 2 Holders of rec. June 16a
Waldorf System, corn. (guar.)
37340. July 2 Holders of rec. June 20
Preferred (guar.)
200. July 2 Holders of rec. June
Walworth Co., com. (guar.)
*300. June 15 *Holders of rec. June 20
4
Preferred (guar.)
•75e. June 30 *Holders of rec. June 20
Weston Electrical Instrument A (guar.) .500. July 2 *Holders
of roe. June 25
Woodworth. Inc., cony. pref.(quar.)_
62340. June 15 Holders of roe. June 1
Zellerbach Corp., corn. (guar.)
•500. July 15 *Holders of rec. June 30
*134
3253
Per
When
Cent. Payable.
Books Closed
Days Inclusive.
Railroads (Steam).
Cleveland & Pitts., guar.(guar.)
87340. June 1 Holders of roe. May
10a
Special guaranteed (guar.)
50c. June 1 Holders of rec. May 100
Colorado & Southern. 1st pref
2
June 30 Holders of rec. June
Consolidated Rita. of Cuba. Pre'
134 July 2 Holders of roe. June 18a
ha
Cuba RR., common
$1.20 June 28 Holders of rec. June 28
Preferred
3
Aug. 1 Holders of rec. July 16a
Preferred
3
Feb.1 *2 9Holders of rec.Jan.15'29
Delaware & Hudson Co.(guar.)
234 June 20 Holders of roe. May
Hocking Valley (guar.)
234 June 30 Holders of rec. June 250
80
Hudson & Manhattan, common
$1.25 June 1 Holders of rec. May 180
Minobi Central, com.(guar.)
154 June 1 Holders of ree. May 4a
Maine Central. com.(guar.)
1
July 2 Holders of rec. June 15
Preferred (guar.)
134 June 1 Holders of rec. May 15
Midland Valley. pre!
$1.25 June 1 Holders of rec. May 24a
Mobile & Birmingham, pref
2
July 2 June 2 to July
1
New Orleans Texas & Mexico (guar.)
134 June 1 Holders of rec. May 15a
N.Y. Chicago & St. Louis, corn.(guar.) 134 July 2 Holders of rec.
May 15a
Prof. series A (guar.)
134 July 2 Holders of roe. May 15a
Norfolk & Western. com.(guar.)
2
June 19 Holders of roe. May 31a
Northern Securities
434 July 10 June 23 to July 10
Pennsylvania RR.(guar.)
8734c May 31 Holders of reo. May la
Phila. Germantown & Nor (guar.)
$1.50 June 4 May 22 to June 3
Pittsb. Bessemer & Lake Erie, pref
$1.50 June 1 Holders of rec. May 15
Pitts. Youngst.& Ashtabula, pf.(qu.) - 154 June 1 Holders of rec.
May 21a
Reading Company, let pref. (quiz.)
500. June 14 Holders of rec. May 24a
St. Louis-San Fran., com (guar.)
134 July dl Holders of rec. June 1
Common (extra)
250. July dl Holders of rec. June 1
Preferred (guar.)
134 Aug. 1 Holders of rec. July 14a
Preferred (guar.)
134 Nov. 1 Holders of rec. Oct. 15a
St. Louis Southwest, pref.(gum.)
134 June 30 Holders of rec. June 15a
Southern Pacific Co.(guar.)
134 July 2 Holders of rec. May 25a
Texas & Pacific (guar.)(No. 1)
134 July 2 Holders of rec. May 31a
Union Pacific. common (guar.)
234 July 2 Holders of rec. June la
Name of Company.
Public Utilities.
Amer.Power dr Light,common (guar.)
25c. June 1 Holders of rec. May 15a
Common (one-fiftieth share com. stk.)
June 1 Holders of rec. May 15a
Amer. Telegraph & Cable (;niar.)
1% June 1 Holders of rec. May 31a
Amer.Telep.& Teleg.(guar.)
234 July 16 Holders of rec. June 20a
Am. Witt. Wks.& Elec., $6 1st pf.(qu.) $1.50 July 2 Holders of roe.
12a
Associated Gas & El., orig. pref.(quay.). 18734c. July 2 Holders of rec. June
May 31
$7 preferred (guar.)
1.$1.75 July 2 Holders of rec. May 31
$6.50 preferred (guar.)
.J$ 1.6234 June 1 Holders of rec. Apr. 30
$6 pref. (quar.)
181.50 June 1 Holders of rec. Apr. 30
Atlantic Pub.Util.,com.A (qu.)
500. June 1 Holders of rec. May 15
$7 cum. pref.series"A"(guar.)
$1.75 June 1 Holders of rec. May 16
Baton Rouge Elec. Co., pref. A (quar.)- $1.75 June 1 Holders of rec.
May 15
Blackstone Valley Gas & El.. pref
$3
June 1 Holders of rec. May 150
Brazilian 'tr.. L.& Pow., coin.(qu.)
134 June 1 Holders of ree. Apr. 30
Brooklyn Edison Co.. COM.((Mar.)
2
June 1 Holders of rec. May ha
Central Ark. Pub. Sexy., pref. (quar.)
154 June 1 Holders of rec. May 15
Central Gas & Elec.. $634 pref. (go.)..*$ 1.6234 June 1 *Holders of rec. May
16
$7 preferred (guar.)
•$1.75 June 1 *Holders of rec. May 16
Class A (guar.)
•433(c June 1 *Holders of rec. May 28
Central Ill. Pub. Serv., pref.(quay.)... •$1.50 July 1 *Holders of rec. June
Central Indiana Power, pref.(guar.)--- •$1.75 June 1 *Holders of rec. May 30
19
Chic. Rapid Transit, pref. A (monthly). 65e. June 1 Holders of roe. May 15a
Prior preferred B (monthly)
60e. June 1 Holders of roe. May 15a
Cleveland Elec. Ill., pref. (guar.)
June
1 Holders of rec. May 15a
134
Coast Cos. Gas & Elec.First and second preferred (guar.)--- *$1.53 June 25 *Holders of rec. June
Consol. Gas El. L. & P. Bal..com.(qu.) *750.1 July 2 *Holders of rec. June 14
15
5% pref., series A (guar.)
'134 July 2 *Holders of rec. June 15
6% pref., series D (guar.)
July 2 *Holders of rec. June 15
634% pref., series E
*134 July 2 *Holders of rec.
15
Consolidated Gas of N.Y.,com.(guar.). $1.25 June 15 Holders of reo. June
May 8a
Consumers Power,6% pref. (quiz.).... 134 July 2 Holders of roe. June
15
6.6% preferred (guar.)
1.65 July 2 Holders of rec. June 15
7% preferred (guar.)
154 July 2 Holders of rec. June 15
6% preferred (monthly)
50o. June 1 Holders of rec. May 15
6% preferred (monthly)
600. July 2 Holders of rec. June 15
6.6% preferred (monthly)
500. June 1 Holders of rec. May 15
6.6% preferred (monthly)
550. July 2 Holders of roe. June 15
Dayton Power & Light pref. mohly.).-- *50e. June 1 *Holders of
rec. May 20
Duquesne Light. 1st pref.(guar.)
134 July 14 Holders of rec. June lba
East Kootenay Power. pref.(quar.)
1% June 15 Holders of rec. May 31
Electric Public Service, prof. (quiz.)... $1.75 July 1 Holders of
Electric Public Utilities, pref. (guar.)._ $1.75 July 1 Holders rec. June 12
of rec. June 12
Empire Gas& Fuel8% pref.(monthly).. 662.3c June 1 Holders of
rec. May 15a
7% preferred (monthly)
58 1-3c June 1 Holders of reo. May 15a
634% preferred (monthly)
54 1-6c June 1 Holders of rec. May 15a
Federal Light & Tr., com.(guar.)
200. July 2 Holders of rec. June 13a
Common (payable in corn. stock)..
fl5e. July 2 Holders of rec. June 13a
Preferred( guar.)
June 1 Holders of roe. May 15a
Federal Water Service, el. A (quiz.).... 1)4
500. June 1 Holders of rec. May 8
Gary Railways, class A pref.(quar.)__
$1.80 June 1 Holders of rec. May 19
General Gas & Elec.,com. A.(quar.)
3734e. July 1 Holders of roe. June 12a
$8 preferred (quar.)
$a July 1 Holders of roe. June 12a
$7 preferred class A (quar.)
$1.75 July 1 Holders of roe. June 12a
preferred
$7
class B (quiz.)
$1.75 July 1 Holders of rec. June 12a
Hackensack Water, common
75o. June 1 Holders of rec. May 146
Preferred (guar.)
June 1 Holders of rec. May 14a
Havana Electric Ry.6% pref. (guar.)._ 8734c June
1 Holders of rec. May 14a
134
Indianapolis Water,Prof.(guar.)
$1.50 July 1 Holders of rec. June 126
Indiana Service, 7% pref. (guar.)
Holders of rec. May 15
June
1
1%
6% preferred (guar.)
134 June 1 Holders of rec. May 15
International Pow. Secur. $6 pref.. A... 83
June 15 Holders of rec. June 1
Jamaica Public Serv.. prof.(guar.)
1% July 3 Holders of rec. June 15
Keystone Teleph. of Phila.. pref.(guar ) al
June 1 Holders of roe. May 18
Laclede Gas & Elec., prior lien (quar.)•131 June 1 *Holders of roe. May 19
Louisville G.& El.(Del.) corn A&B (qu.) 43%c. June 25 Holders of rec. May 310
Massachusetts Gas Cos., pref
June 1 May 16 to May 31
2
Middle West Ut11. prior Ben (quiz.).... *$2
June 15 Holders of rec. May 31
$6 cum. pref.(guar.)
$1.50 June 15 Holders of roe. May 31
Milwauke
Elec. Ry.& Light-Below we give the dividends announced in previous weeks 7% pref.e Issue
of 1921 (guar.)
134 June 1 Holders of roe. May 15
and not yet paid. This list does not include dividen
6% pref. PISUO of 1921 (quiz.)
1)4 Juno 1 Holders of roe. May US
ds
anMonongah
. W.Penn Wat,SerV., Pf.(QU) 4334c July 2 Holders of rec. June 15
nounced this week, these being given in the preceding
Power & Light, corn. (quiz'.)
table. National
25o. June 1 Holders of roe. May 15a
Nebraska Power, Prof.(guar.)
Holders of rec. May 15
1% June
New England Public Serv.$7 pf.(qu.)... *51.75 June 15 *Holders of rec. May 31
Per
When
Boob Closed
New Eng. Telep. & Teleg. (guar.)
Name of Company.
2
June 3 Holders of rec. June 9
Cent. Payable.
Days Inelustee.
North American Co.. corn. (guar.)
Holders of rec. June 56
/234 July
Railroads(Steam)(Concluded).
Preferred (guar.)
750. July
Holders of reo. June 54
Alabama Great Southern,com
June 28 Holders of reo. May 244 North American Edison, pref. (quar.).. $1.50 June
Holders of rec. May 156
$2
Common (extra)
$1.50 June 1 Holders of rec. May 31
$1.50 June 28 Holders of ree. May 24a North Amer. Ut11. Sec. lit pref.(g11.)
2nd preferred (quiz,)
Preferred
Aug. 15 Holders of roe. July lie
$1.75 June 1 Holders of rec. May 31
52
Preferred (extra)
Ohio Pow.& L.,6% pt.(qu.). 135 July
$1.50 Aug. 15 Holders of roe. July lie Northern
Holders of rec. JUDO 15
7% preferred
Atch. Topeka & Santa Fe. am.(guar.). 234 June 1 Holders of
134 July 2 Holders of rec. June 15
roe. May 4a Northern States(guar.)
Atlantic Coast Line RR., oom
Power (Wise.). pf.(go.) 154 June 1 Holders of rec. May 19
$3.50 July 10 Holders of roe. June 15a
Common (extra)
$1.50 July 10 Holders of rec. June 150 Ohlo Edison Co..6% pref.'guar.)
1% June 1 Holders of roe. May 15
6.6% preferred (guar.)
Augusta & Savannah
1.65 June 1 Holders of rec. May 15
214 July 5 Holders Of rec. June 15a
7% preferred (guar.)
Extra
% July 5 Holders of rec. June
1% June 1 Holders of rec. May 15
5% preferred (guar.)
Baltimore & Ohio, corn. (guar.)
134 June 1 Holders of rec. Apr. I5a
Isc June 1 Holders of rec. May 15
14a
6%
preferred
(monthly
Preferred (quar.)
)
1
June 1 Holders of roe. Apr. 14a
50e. June 1 Holders of rec. May 15
6.6% Preferred (monthly)
Bangor & Aroostook, com. (guar.)
87e. July 1 Holders of roe. May 31a
550. June 1 Holders of roe. May 15
Oklahoma Gas & Elec., pref. (guar.).
Preferred (guar.)
134 July 1 Holders of roe. May 31a
- - 1% June 15 Holders of rec. May 31
Pacific
Telep.
& Teleg.. common (quar.) •1% July 16 *Holders of rec. June
Boston & Providence (guar.)
234 July 2 Holders of roe. June 20
30
Preferred (guar.)
Canadian Pacific, corn. (guar.)
234 June 30 Holders of roe. June la Penn.
July 16 *Holders of rec. June 30
G.& El. Corp.. corn. A & B (qu.). '37340 June
Chesapeake & Ohio, pref. -A"
334 July 1 Holders of ree. June 8a
1 *Holders of rec. May 21
7%
preferred
(quay,)
Chesapeake Corporation (guar.)
•13i June 2 *Holders of rec. June 20
75e, July 1 Holders of rec. June 8a
$7 preferred (quay,)
Chestnut Hifi(guar.)
$1.75 June 2 *Holders of roe. June 20
75e. June 4 May 22 to June 3
Penn-Ohio Edison Co., pr. pref.(guar.).• 134 June
Chicago Burlington & Quincy
5
June 25 Holders of rec. June 18
1 Holders of roe. May 21
Pennsylva
nia-Ohio P. & L.. $6 Pf.(gu.) $1.50 Aug. 1
Chicago & North Western, common
Holders of roe. July 20
2
June 30 Holders of rec. June la
7% pref. (guar.)
Preferred
134 Aug. 1 Holders of rec. July 20
334 June 30 Holders of me. June la
prof.
7.2%
(monthly)
60c June 1 Holders of rec. may 21
Chic. R. I. & Pacific, com.(guar.)
134 June 30 Holders of roe. June la
7.2% pref. (monthly)
600 July 2 Holders of rec. June 20
7% preferred
334 June 30 Holders of reo. June la
7.2% prof.(monthly)
600. Aug. 1 Holders of rec. July 20
6% preferred
3
June 30 Holders of roe. June la
6.6% preferred (monthly)
550. June 1 Holders of rec. May 21
CM.N.0.& Tel PUBIC,COM
4
June 25 Holders of roe. June 8
6,6% pref.(monthly)
55c July 2 Holders of rec. June 20
Preferred (guar.)
134 June 1 Holders of rec. MaydliSa
6.6% pref.(monthly)
550. Aug. 1 Holders of rec. July 20
•134
*134
134
134
3254
Name of Company
[VOL. 126.
FINANCIAL CHRONICLE
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Company.
When
Per
Cent. Payable.
Books Closed
Days Inclusive.
Miscellaneous (Continued).
$1.50 June 1 Holders of rec. May 15a
Borden Company,cons.(qual.)
3 June 30 Holders of ree. June 1
Boston Wharf
*50e. June 1 *Holders of recs. May 19
Brach (E. J.) & Sons, corn
50c. June 15 Holders of rec. May 31
Brading Breweries, Ltd.. corn
*134 June 1 *Holders of rec. May 18
Brill Corporation, pref. (quar.)
*50e. June 1 *Holders of rec. May 19
Brook (E. J.) & Sons (guar.)
62,4e. June 1 Holders of rec. May 21a
Brown Shoe,•com. (qua?.)
June 15 Holders of rec. Apr. 23
$1
Buckeye Pipe Line (qual.)
June 15 Holders of ree. Apr. 23
$1
Extra
July 2 Holders of rec. June 90
250.
corn.
(qual.)
Bucyrus-Erie Co.
62,4c July 2 Holders of rec. June 9a
Convertible preferred (qual.)
2 Holders of rec. June 9a
July
1%
prof.
(qua?.)
7%
75e. June 11 Holders of reo. May 260
Burroughs Adding Mach. (guar.)
$1 June 15 Holders of ree. May Ola
California Packing (qual.)
25e. July 2 Holders of rec. June la
California Petroleum (guar.)
Campbell, Wyant & Cannon Foundry
*50c. June I *Holders of reo. May 15
Co. (qual.)
2
June 30 Holders of rec. June 20
Canfield 011, corn.(qear.)
2
Sept.30 Holders of ree. Sept.20
Common (guar.)
Dec. 31 Holders of rec. Doe. 20
2
Common (guar.)
154 June 30 Holders of reo. June 20
Preferred (guar.)
154 Sept.30 Holders of ree. Sept.20
Preferred (guar.)
131 Dee. 31 Holders of rec. Doe. 20
Preferred (guar.)
$1.50 June 15 Holders of rec. June 9
Carter (William) Co.. pref.(au.)
Case (J. I.) Thresh. Mach..core.(qu.)-- $1.50 July 1 Holders of rec. June 11
131 July 1 Holders of rec. June 11
Preferred (qua?.)
$1.75 June 1 Holders of reo. May 10
Celluloid Co., 1st pf. part1o. stk.
21.75 June 1 Holders of rec. May 10
$7 preferred (qua?.)
'
3734c July 1 Holders of ree. May la
Central Investors Corp.. el. A (No.1_
'3734e Oct. 1 *Holders of rec. May la
Class A (qual.)
Jan2'29 *Holders of rec. May la
*37340
Claim A (qua?.)
*7340 July 1 *Holders of ree. May la
Class B (No. 1)
13( June 1 Holders of ree. May 196
Century Ribbon Mills. prof.(luer.)
750. June 30 Holders of rect. June la
Certo Corporation (guar.)
250. June 30 Holders of ree. June la
Extra
SI June 30 Holders of ree. June 9a
(qual.)
Cons.
Chesebrough Mfg.
25e. June 30 Holders of reo. June lia
Extra
•1,4 June 1 *Holders of reo. May 31
Chicago Flexible Shaft, pref.(quar.)__
Banks.
25o. June 1 Holders of roe. May 18a
Chicago Yellow Cab (monthly)
11 July 1 June 10 to July 1
American Colonial Bank of Porto Rico
Chickasha Cotton 011
June 1 Holders of ree. May 12
2
June 10 Holders of reo. May 250
600.
(qual.)
(quar.)
Childs Co., corn.
June 1 Holders of reo. May 12
2
134 June 10 Holders of rec. May 254
Extra
Preferred
(guar.)
19
May
rec.
of
Holders
1
June
$2.67
6234e
June 80 Holders of reo. June tia
(guar.)
National City (interim.)
Co.
Copper
Chile
19
$1.98 June 1 Holders of ree. May
75o. June 30 Holders of rec. June 166
National City Company (interim.)
Chrysler Corp., com.(quar.)
June I Holders of rec. May 25
3
2
June 30 Holders of rec. June 16a
Port Morris (quar.)
Preferred (quar.)
2
Sept.29 Holders of reo. Sept.176
Trust Companies.
Preferred (quar.)
June 30 Holders of rec. June 150
3
2
Jan.219 Holders of rect. Dee, 17a
Equltable(quar.)
Preferred (quar.)
May 26
rec.
of
Holders
2
July
5
June 15 Holders of rec. June 8a
Manufacturers (quar.)
Cincinnati Tobacco Wherehouse, corn.. $1
June 1 *Holders of rec. May 15
CitiesService, common (monthly)
'134. June 1 Holders of rec. May 15
-corn.
Fire Insurance.
stock).
in
(payable
'
Common
'4'''.1
11111316
19
May
rec.
of
•100 May 29 *Holders
June 1 'Holder, of rec. May 15
United States Fire (In stock)
Preferred and pref. B.B.(monthly)
'Se. June 1 Holders of rec. May 15
Preferred B (monthly)
•)4 July
2 *Holders of rec. June 15
Miscellaneous.
(monthly)
common
Service,
Cities
150
June
$1.50 June 30 Holders of rec.
Common (payable in corn. stock).... *1)4 July 2 *Holders of rec. June 15
Adams Express(qua?.)
$1.25 June 30 Holders of rec. June 15a
July 2 *Holders of rec. June 15
(monthly)..
B.
and
B.
pref.
dPreferred (quar.)
Preferred
150
May
rec.
of
Holders
June 1
*5o. July 2 *Holders of rec. June 15
Amalgamated Laundries, Pref.(quar.)_ 5834c. June 1 *Holders of rec. May 21
PreferredB (monthly)
*31
*2 0.375c. June 1 *Holders of rec. May 15
Bankers shares (monthly)
American Arch (guar.)
June 1 Holders of rec. May 15
75e. June 1 Holders of ree. May 100
(guar.)
Fuel
(Cleve.)
&
Ice
City
Am.Brit.& ContInent.Corp.Istpf.(gu.)_ $1.50
15
May
$3 June 1 Holders of rec.
87340. Aug. 1 Holders of ree. July 140
Stores, class A (qual.)
Second preferred
75e. July 1 Holders of rec. June 150 City
A (guar.)(No. 1).. *680. June 1 *Holders of rec. May 18
cony.
Clark
Lighter,
Amer. Chicle, corn. (guar.)
15a
June
ree.
of
Holders
$1.75 July 1
500. June 1 Holders of reo. May 15a
Prior preferred (guar.)
July 1 Holders of reo. June ltie ClevelandStone(guar.)
$1
25c. June I Holders of rec. May 156
Extra
American Hardware Corp. (guar.)
Oct. 1 Holders of reo. Sept. 150
$1
500. Sept. 1 Holders of reo. Aug. 15a
Quarterly
Quarterly
150
Dee.
rec.
Jan 1'29 Holders of
$1
July 2 Holders of rec. June 126
$1.50
(qua?.)
Co.,
com.
Quarterly
25e. June 1 Holders of ree. May 146 Coca-Cola
Corp., prof. (qu.) --- 1% June 1 Holders of reo. May 226
Amer. Home Products (monthly)
134 July 2 Holders of ree. June 200 Collins & Aikman
July 2 Holders of reo. June 200
$2
---Corp.
(quar.)
Solvents
Commercial
Amer.Lindseed, pref.(guar.)
•15( June 1 *Holders of rec. May 100
1% Oct. I Holders of ree. Sept.204
Preferred (guar.)
Coresoleurn-Nairn. Incl.. pref.(qual.)__
1% Jan2'29 Holders of ree. Dee. 21e Congress
$1
June 80 Holders of ree. June 14a
Cigar
(qual.)
Preferred (guar.)
130
June
rec.
of
Holders
June 30
25e. June 30 Holders of reo. June 14a
American Locomotive. cons.(guar.)- _ $2
Extra
134 June 30 Holders of reo. June 130
1% June 1 Holders of rec. May 15a
pref. (quar.)
Preferred (qua?.)
July 1 Holders of rec. June 15e Consolidated Cigar,
1
30c. July 1 Holders of rec.June d20a
-(qu.)A,
cons.
class
Corp..
American Manufacturing, com.(guar.).. 1
Container
150
Sept.
1 Holders of rec.
Oct.
Holders of reo.June d20a
July
15c.
(guar.)
Common
Class B common (qua?.)
Deo. 31 Holders of reo. Doe. 150
1
1% July 2 Holders of reo. June 20e
Common (quart)
Can, pref.(guar.)
1)4 July 1 Holders of reo. June 154 ContinentalShale
15
June
Holders of rec. May 31
1
(qu.)
Preferred (guar.)
Prof.
Brick,
Cookeville
1% Oct. 1 Holders of rec. Sept. I50
134 June 15 Holders of ree. June 1
Preferred (guar.)
1% Dec. 31 Holders of reo. Deo. 150 Crane Company, corn.(guar.)
1% June 15 Holders of nee. June 1
Preferred (guar.)
(qua?.)
Preferred
166
May
ree.
75e. June 1 Holders of
Dee. 31
e4
American Metal, com. (guar.)
1,4 June 1 Holders of ree. May 15a Crosby Radio (stock dividend)
25e, July 1 Holders of reo. June 200
7% preferred (qual.)
1,4 June 1 Holders of ree. May 15a Crosley Radio Corp.(guar.)
1 Holders of reo. Sept. 206
25e.
Oct.
6% preferred (guar.) (No. 1,)
Quarterly
50c. June 1 Holders of ree. May 15
25e. Jan 1'29 Holders of reo. De0. 204
Amer. multigraPh. 0001. (guar./
Quarterly
$1.25 June 30 Holders of rec. June 16.2
154 June 80 Holders of rec. June 154
Amer. Radiator. com.((marl
pref.
(qua?.)
Steel,
15a
Crucible
June
reo.
of
$1.50 June 30 Holders
25e. July 2 Holders of rec. June 26
Amer. Railway Express (guar.)
Cuban-American Sugar. corn. (q11.)
•506. July 15 *Holders of reo. June 30
1% July 2 Holders of reo. June 2a
Amer. Rolling Mill. COM.(quer.)
Preferred (quar.)
July 15 *Holders of reo. June 30
*15
2
June 15 Holders of ree. May d31
Common (payable in corn. stock)
(qual.)
Pipe
Line
Cumberland
15 *Holders of rec. June 30
*134
July
(guar.)
June 15 Holders of rec. May 31
d3
pref.
6%
Extra
75c. July 1 Holders of reo. June 20a
1% June 15 Holders of rec. June i la
American Seating, com.(guar.)
pref.
(qual.)
Press.
40
Cuneo
May
rec.
of
1
Holders
June
134
Sept. 15 Holders of rec. Sept. la
Amer. Smelt. & Relg., pref.(guar.)._ 1)4
Preferred (quar.)
50c. July 2 June 17 to July 2
*50o. June 2 *Holders of rec. May 20
Amer. Stores. corn. (guar.)
134 July 2 Holders of ree. June 5a Curtis Publishing, corn.(monthly)
*500.
June
10 *Holders of rec. May 20
Amer. Sugar Refs., pref.(guar.)
(extra)
Common
156
May
lt( June 1 Holders of rec.
$1
June 1 Holders of rec. May 15a
Amer. Sumatra Tob.. pref.(guar.)
134 Sept. 1 Holders of rec. Aug. 15a Cushmans Sons. cons. (qual.)
1,4 June 1 Holders of rec. May 15a
(qual.)
Preferred (qua?.)
preferred
cent
per
Seven
104
May
reo.
of
1
Holders
June
$2
(guar.).
2
June 1 Holders of rec. May 15a
Amer. Tobacco, corn. & corn. B
Eight per cent preferred (quar.)
200 July 15 Holders of ree. July 5
88e. June 15 Holders of rec. June 46
Angle Steel Stool(guar.)
Cutler-Hammer Mfg., corn.(No. 1)
200 Oct. 15 Holders of reo. Oct. 5
*1.34
June 1 *Holders of rec. May 14
(quar.)
Quarterly
core.
g.,
DartmouthMf
16
May
ree.
of
1% June 1 Holders
*1% June 1 *Holders of ree. May 14
Anticosti Corp.. 7% Pref. (qu.)
Preferred (emir.)
75e. July 1 Holders of rec. June 150
June 28 *Holders of ree. June 9
051
Artloom Corp., com.(guar.)
750. Oct. 1 Holders of rec. Sept.210 Davis Mills (quar.)
50e. June 15 Holders of rec. June 54
Common (guar.)
75e. Jan 1'29 Holders of rec. Dec. 210 Decker (Alfred) & Cohn. coin.(Guar.).- 1%
June 1 Holders of ree. May 19a
Common (guar.)
Preferred (qua?.)
134 June I Holders of rec. May 15
1% Sept. 1 Holders of ree. Aug. 205
Preferred (quar.)
Preferred (guar.)
1% Sept. 1 Holders of ree. Aug. 176
2 Holders of ree. June 15
July
134
(qua?.)
corn.
(quar.)
Preferred
1% Deo. 1 Holders of rec. Nov. 166 Deere & Co.,
154 June 1 Holders of rec. May 15a
Preferred (qua?.)
Preferred (qual.)
1,4 June 1 Holders of reo. May 126
2
June 15 Holders of reo. May 310
Associated Dry Goods. lei pref.(guar.). 1% June 1 Holders of rec. May 12e Diamond Match (quar.)
*25o. June 1 *Holders of rec. May 18
Dictaphone Corp., corn.(qua?.)
Second preferred (qual.)
*25C. JUIN 1 *Holders of rec. May 18
Common (extra)
Atlantic Gulf dr West I. 8. B. Linea75o. June 30 Holders of rec. June ha
June 1 *Holders of rec. May 18
110
,
corn,
stook)
In
(payable
Cony.
Preferred (guar.)
75o, Sept.29 Holders of rec. Sept. 100
*2
Juno 1 *Holders of reo. May 18
Preferred (guar.)
Preferred (guar.)
75e. Dec. 31 Holders of reo. Doe. lba
$1
June 1 Holders of ree. May 15a
11)
(No.
Inc.
210
Drug,
May
Preferred (guar.)
June 15 Holders of rec.
1
1,4
Aug. 1 Holden of reo. June 30
Eastern Bankers Corp., pref.(qual.)...
Atlantic Refining, corn. (guar.)
June 15 Holders of rec. June 5
1
1% Nov. 1 Holders of ree. Sept.30
(qual.)
Preferred
316
May
rec.
of
Holders
Atlantic Terra Colts prof.(quar.)
11
JUDO
$1
Febl'29
Holders of rec. Doe. 31
15t
(guar.)
Preferred (qual.)
Atlas Powder, common
1,4 July 1 Holders of reo. June 200
BOo. June 1 Holders of rect. Apr. 30
Babcock & Wilcox Co.(guar.)
1 Holders of ree. Sept.206 East. Theatres,Ltd.(Toronto).00m.0110
Oct.13
2
Holders of reo. May 310
July
$1.25
corn.
(guar.)
Kodak,
Eastman
200
Dec.
Quarterly
134 Jan 1'29 Holders of rec.
75c. July 2 Holders of reo. May 31a
Common (extra)
Quarterly
134 Aprl'29 Hiders of rec.Mar.20'29a
1,4 July 2 Holders of rec. May 3I0
Preferred
(qual.)
15
June
rec.
of
Holders
Quarterly
8734c July 1
(qua?.).. •8234c May 31 *Holders of rec. May 16
Bahia Corp.. pref
25c. June 1 Holders of rec. May 21a Eitingon Schild Co., Inc.. eons.&pf
(qu.)_ $1.25 July 2 Holders of rec. June 06
Holders of ree. June 206 Electric Storage Battery,com.
Balaban & Katz, corn. (monthly)
25c. Jul,
3734e. June 1 Holders of rec. May 21
(monthly)
Dry
Ely-Walker
corn.
Goods.
(quer)
20a
June
Common
1;i July I Holders of rec.
50o. June 24 Holders of ree. June 1
Preferred (guar.)
I% JUDO 1 Holders of reo. May 126 Emperium-Capwell Corp.(qual.)
July 2 Holders of rec. June 15a
Bamberger(L.)& Co.. Pref.(guar.)- - 1% Sept. 1 Holders of rec. Aug. lla Equitable Office Bldg., com.(Guar.)._ 2
1%
July 2 Holders of rec. June 15a
Preferred (quar.)
Preferred (guar.)
1% Dee. 1 Holders of rec. Nov. 10a
June 1 Holders of rec. May 9
$3
Essex
Company
30
June
ree.
of
Preferred (guar.)
Holders
54
July 16
Fairbanks. MOM!& Co.. corn.(qua?.).. 75e. June 30 Holders of rec. June 120
Bankers Capital Corp.. common
July 16 Holders of rec. June 30
$2
134 June 1 Holders of reo. May 120
Preferred (quar.)
Preferred (guar.)
Vis 15 Holders of reo. Oct. 1
$2
200. June 1 Holders of reo. May 2I0
Fair (The). corn.(monthly)
31
Dee.
reo.
of
(guar.)
Holders
Preferred
$2
20e. July 2 Holders of reo. June 20a
Common (monthly)
Preferred (quar.)
*500. June 1 *Holders of rec. May 15
Candy Shops, COM (au.) 250. July 1
Farmer
Fanny
206
June
Bastian-Blessing Co.. COM.(guar.)
rec.
of
Holders
1
July
81.75
25e Oct. 1
Common (quar.)
Preferred (guar.)
$1.75 Oct. 1 Holders of rec. Sept 206
25e. Jan 119
Common (quar.)
Preferred (quar.)
134 June 15 Holders of rec. May 31
50c. May 81 Holders of fee. may 170
Park,
Inc.,
Fashion
Belding-Corticelli. Ltd., pref. (guar.)._
1
com.Kluar3
June
ree.
131 July 2 Holders of
I7a
50o. Aug. $1 Holders of ree. Aug. 30s
Common (qual.)
Beigo Canadian Paper. prof. (guar.).- •50c. July 1 Holders of fee. June 20
50o. Nov. 30 Holders of ree. Nov. 250
Common (qua?.)
Bendlx Corp.. corn. A.(guar.)
30c. June 1 Holders of ree. May 20
reo. May
of
Holders
June
15
corn
134
Stores,
(qu.)
&
Mining
pf.
Federal
Smelt..
--Bentley Chain
$1 June 1 Holders of ree. May 20
20e. July 2 Holders of rec. June 16a
Preferred
16a
75e. June 15 Holders of ree. May 250 Federal Motor Truck (qual.)
234 July 5 Holders of rec. June
Stock dividend
Best & Co.(qua?.)
2 Holders of reo. June 2a
July
134
(qua?.)...
4
June 1 Holders of rec. May 15
Financial Service Co., com
Bethlehem Steel, 7% pref.
1 Holders of ree. May 22
15
May
June
ree.
of
1%
Holders
134 June 1
Preferred (quar.)
Bird Grocery Stores, pref. (qu.)
Aug. 14
Aug. 15 Aug 10 to
July 1 Holders of rec. June 134
First National Pictures, 1st Dr.(qu.).... 2
Bloch Brothers Tobacco. erne (qua?.).. 3734e.
la
3714e. Nov.15 Nov. 10 to Nov. 14
154 July 1 Holders of fee. July
Second preferred A (quar.)
29
Common (quar.)
June
to
25
June
30
June
134
June 1 Holders of reo. May 15a
131
prof.
2d
Fisk
Rubber,
29
Sept.
(guar.)
Preferred (qua?.)
June 1
Sept. 30 Sept. 25 to
to
20
May
134
1
June
31
Florence Stove,corn.(qua?.)
Preferred (qua?.)
1
134 Dec. 81 Doe. 26 to Dee. 30
134 June 1 May 20 to June
Preferred(Qum.)
Preferred (guar.)
1 Holders of rec. July 16
Bohack(H.C.) Co.,new no par com.(qu.) *62340 Aug.
Public Utilities (Concluded).)
Peoples Gas Co., preferred
Philadelphia Company,corn.(quar.)_ _
e% pref. (qua?.)
Philadelphia Electric (quar.)
Phila. Suburban Water Co., pref. (mi.)
Portland Elec. Power,2d pref. (quar.)_
Potomac Elec. Power,6% Pl.(qu.). 534% preferred (qual.)
Public Serv. Corp.6% pref.(mthly.)
Pub.Serv. Elec.& Gas,6% pt.(quar.)
7% pref. (quar.)
_
Radio Corp. of Amer.. pref. A (guar.)
Southern Calif. Edison. set A pref.(qu.)
Series B pref.(qua?.)
Southern Colorado Power,7% pf.(qu.)
Southern New England Tele13.
Southwestern Pow.& L., pref.(qual.)...
Standard Gas & Elec.,8% pref.(gu.)._
Tennessee Elec. Pow., 6% lst pf. (qu.)
7% mai preferred (qua?.)
7.2% tint preferred (guar.)
6% first preferred (monthly)
6% first preferred (monthly)
7.2% neyv preferred (monthly)
7.2% first preferred (monthly)
Toledo Edison Co. 7% Pi. (mthlY.)8% pref.(monthly)
Utility Shares Corp.. panto. pref.(q.)
Western Power Corp. 7% pref. (0111.)-West Ohio Gas class A pref.(quar.) --.
West Penn Elec. Co.,class A ((Mar.)
West Penn. Rye.,6% pref.(qual.)
(guar.)._
pref.
Lt.,
&
Pow.
Wisconsin
Wisconsin Public Service,7% pf.(qu.)_
634% preferred (quar.)
8% preferred (quar.)
July 1 Holders of reo. June 126
3
July 31 Holders of rec. July 26
$1
1 Holders of rec. Aug. 106
Sept.
$1.25
50e. June 15 Holders of rec. May 310
134 June 1 Holders of rec. May 12a
134 June 1 Holders of rec. May 15
134 June 1 May 18 to May 20
134 June 1 May 18 to May 20
50c. May 31 Holders of rec. May 4a
IM June 30 Holders of rec. June la
*134 June 30 *Holders of rec. June 1
8734e. July 1 Holders of rec. June 14
43340. June 15 Holders of rec. May 20
3734e. June 15 Holders of rec. May 20
134 June 15 Holders of rec. May 31
July 16 *Holders of rec. June 30
*2
134 June 1 Holders of ree. May 15
June 15 Holders of ree. May 316
2
13; July 2 Holders of ree. June 15
134 July 2 Holders of ree. June 15
1.80 July 2 Holders of ree. June 15
500. June 1 Holders of ree. May 15
50o. July 2 Holders of reo. June 15
600. June 1 liolders of rec. May 15
60e. July 2 Holders of rec. June 15
cJune 1 *Holders of rec. May 15
*58
*50c. June 1 *Holders of rec. May 15
30e. June 1 Holders of ree. May 16
131 July '18 Holders of rec. June 300
IM June 1 Holders of rec. May 15
$1.75 June 30 Holders of rec. June 15a
134 June 15 Holders of rec. May 25
•$1.75 June 15 *Holders of rec. May 31
134 June 20 Holders of rec. May 31
1 M June 20 Holders of rec. May 31
13.5 June 20 Holders of reo. May 31
MAY 26 1928.]
Name of Company.
FINANCIAL CHRONICLE
When
Per
Cent. Payable
Books Closed.
Days Inclusive.
Miscellaneous (Clentinued)
Fitzremmons & Connell Dredge & D.(1u) *50e. June 1 *Holders of reo. May 21
Formica Insulation (guar.)
250. July 1 Holders of roe. June 153
Extra
10c. July 1 Holders of roe. June 16a
Quarterly
25e. Oct. 1 Holders of reo. Sept. 15a
Extra
100. Oct. 1 Holders of roe. Sept. 15e
Quarterly
25e. Jan.1•29 Holders of rec. Dec. 15a
Extra
be.Jan.179 Holders of rec. Dec. 15a
Fuller(G. A.) Co. partic. prior pf.(gu.)_ d31.50 July 1 Holders of rec. June a9a
Gamewell Company, corn.(MO
*31 25 June 15 *Holders of rec. June 4
Preferred (guar.)
•141 June 1 "Holders of rec. May 21
General Asphalt. prof.(qual.)
14 June I Holders of rec. May 16a
General Cable Corp., class A
$1 .66 2-3 June 1 Holders of recs. May 10a
General Cigar, pref., (guar.)
June 1 Holders of rec. May 21a
General Motors Corp.,common (gu.)
$1.25 June 12 Holders of rec. May 19a
Common (extra)
32
July 3 Holders of me. May 19a
14 Aug. 1 Holders of rec. July 9a
7% Preferred (guar.)
6% preferred (guar.)
14 Aug. 1 Holders of rec. July 9a
6% debenture stock (guar.)
14 Aug. 1 Holders of rec. July 9a
Gillette Safety Razor (guar.)
$1.25 June 1 Holders of rec. May la
(Madding, McBean & Co.
Monthly
250. June I May 20 to May 31
Monthly
250. July I June 21 to June 30
Monthly
25c. Aug I July 21 to July 31
Monthly
25e. Sept. I Aug. 21 to Aug. 31
Monthly
250. Oct. I Sept.21 to Sept.30
Monthly
25o. Nov. 1 Oct. 21 to Oct. 31
Monthly
25e. Deo. 1 Nov.21 to Nov.30
Glidden Co., pref. (guar.)
July 2 Holders of rec. June 15a
Globe-Democrat Pub., pref.(gu.)
June 1 Holders of rec. May 20
Globe Grain & MIllIng. corn.(guar.)
411.50 July 1 *Holders of rec. June 27
Finn preferred (guar.)
411.75 July 1 *Holders of rec. June 27
Second preferred (guar.)
*$2 July 1 *Holders of rec. June 27
Goodrich (B F) Co.. corn. (guar.)
$1
June 1 Holders of rec. May 10a
Preferred (guar.)
July 2 Holders of rec. June 8a
Gorham Mfg., let pref. (guar.)
14 June 1 Holders of rec. May 15
Goseard (H. W.) Co.. corn.(monthly) 881-3c June 1 Holders of rem
May 213
Common (monthly)_
331-3e July 2 Holders of roe. June 203
Gt. Atlantic & Pacific Tea. com.(gu.)
*75o. June I *Holders of rec. May 14
Preferred (guar.)
•154 June 1 *Holders of rec. May 14
Gt. Northern Paper (guar.)
*75e. June 1 *Holders of rec. May 19
Greenfield Tap & Die.6% pref.(guar.). 14 July 2 Holders of
roe. June 15
Eight per cent pref. (guar.)
2
July 2 Holders of rec. June 15
Gruen Watch, corn.(qual.)
*50e. June 1 *Holders of rec. May 18
Common (quarterly)
050e. Sept. 1 "Holders of roe. Aug. 20
Common (quarterly)
*500. Dec. 1 *Holders of rm. Nov. 19
Common (quarterly)
"500. Marl'29 Holders of rec. Feb.15'29
Guantanamo Sugar, pref.(guar.)
2
July 2 Holders of rec. June 153
Harbison-Walker Retr.. corn. (qua!,)... 114 June 1 Holders
of rec. May 214
Preferred (guar.)
14 July 20 Holders of rec. July 10
Hamilton-Brown Shoe, com.(mthly.)
1240 June 1 Holders of rec. May 23
HamiltonUnitedTheatres(Can.)pf.(gu.)_ 14 June 30 Holders of rec.
May 31
Hamilton Watch, pref.(guar.)(No. I)
14 June i Holders of rec. May 10a
Hanes(P. H.) Knitting, com.&com.B__ 150. June 1 Holders
of rec. May 19
Preferred (guar.)
134 July 2 Holders of rec. June
Hartman Corp.. class A (guar.)
500. June 1 Holders of rec. May 20
17a
Class B (guar.)
30e. June 1 Holders of rec. May 17a
Hart, Schaffner & Marx (guar.)
"2
May 31 *Holders of rec. May 15
Hazeltine Corp.(guar.)
250. May 24 Holders of rec. May 4a
Hecla Mining (guar.)
15o. June 15 Holders
rec. May 15a
Hibbard, Spencer, Bartlett & Co.(mthly) 35e. June 29 Holders of
of rm. June 22
Higbee Co., 2d pref.(guar.)
2
June 1 May 20 to June 1
Hires (Charles E.) Co., corn.. el.A(Qu.) 600. June 1 Holders of rec.
May 15
Hobart M rg., common (guar.)
50c. June 1 Holders of rec. May 19
Holly Sugar, Prof.(guar.)
*14 Aug. 1 *Holders of
July 15
Prof.(accr. accum. die.)
*6314 Aug. 1 *Holders of rm.
Homestead Funds Corp., com.(gu.) --- 25e. June 1 Holders of roe. July 15
rec. May 25
Preferred (guar.)
51.75 June 1 Holders of roe. May 25
Hood Rubber Products, pref.(guar.)
June 1 May 22 to June 1
Horn & Hardart of N. Y., pref.(qual.). •14 June 1 'Holders of rec.
May 12
Household Products (guar.)
8734e. June 1 Holders of rec. May 15a
Incorporated Investors(stock dividend). e2
July 16 Holders of roe. June
Minoie Brick (guar.)
600. July 14 July 4 to July 29a
16
Quarterly
600. Oct. 15 Oct. 4 to Oct. 13
Illinois Pipe Line
*16
June 15 *May 15 to June 6
Imperial 011
250. June I Holders of coup. No. 14k
Special
1234c. June 1 Holders of
No. 14k
IncorporatedInvestors,com.(in com stk.) *1100 June 1 *Holders of coup.
rec.
19
Indiana Limestone, pref. (guar.)
14 June 1 Holders of rec. May
May
Ingersoll-Rand Co., cam.(guar.)
75o. June 1 Holders of rec. May 19
7a
Common (extra)
$1 June 1 Holders of rec. May 7e
Preferred
3
July 2 Holders of rec. June 8a
Inland Steel (guar.)
62340 June 1 Holders of rec. May 15a
Inter. Combustion Eng., corn. (qual.).. 50e. May 31 Holders of rec.
May 15a
Preferred (guar.)
014 July 1 *Holders of rec. June
Internat. Harvester,com.(guar.)
114 July 16 Holders of rec. June 15
25a
Corn.(payable in corn.stock)
12
July 25 Holders of rec.
25a
Preferred (guar.)
14 June 1 Holders of rec. June
May So
International Milling, lot pf.(Qu.)
•114 June 1 *Holders of rec May
Internat. Securities Corp.,com.A (gu.)_
55e. June 1 Holders of rec. May 19
Common B (guar.)
12140. June 1 Holders of rec. May 15
15
preferred
7%
(guar.)
June 1 Holders of rec.
15
14 June 1 Holders of rec. May
64% preferred (guar.)
May 15
6% preferred (guar.)
14 June 1 Holders of rec. May 15
International Shoe, pref. (monthly)._
600. June 1 Holders of rec. May 15a
(Monthly)
50e. July 1 Holders of rec. June 15a
(Monthly)
500. Aug. 1 Holders of roe. July 14a
(Monthly)
50o. Sept. 1 Holders of tea. Aug. 15a
(Monthly)
500. Oct. 1 Holders of rec. Sept.
I5a
500. Nov. 1 Holders of roe.
(Monthly)
15a
(Monthly)
50o. Doe. 1 Holders of rec. Oct.
Nov.
International Silver, com.(guar.)
14 June 1 Holders of rec. May 15a
15a
Interstate Iron & Steel,corn.(guar.)
$1 July 18 Holders of rec July fia
el Oct. 15 Holders of ree. Oct 54
Common (guar.)
Common (guar.)
$1 Jan15'29 Holders of rec. Jan 5'29a
14 June 1 Holders of rem May
Preferred (guar.)
196
Jaeger Machine. corn.(guar.)
62340 June 1 Holders of rem May 18a
$1 July 16 Holders of roe. July
Jewel Tea, corn. (guar.)
July 1 Holders of reo June 3a
Preferred (guar.)
Jones & Laughlin Steel, corn.(guar.)---- *14 June 1 *Holders of reo. May 14a
Joake Bros. (guar.)
*75o. May 2 *Holders of rec. May 15
5
Kaynee Co., common (extra)
12340. July 1 Holders of rec. June 20e
Kelsey-Hayes Wheel, COM.(guar.)
500. July 2 Holders of roe.
20a
Keystone Steel & Wire. new corn.(guar.) .750. July 1 *Holders of reo. June
July 5
2
Kinney (G. R.) Co., pref. (guar.)
June 1 Holders of re*. May 21a
14 June 10 Holders of reo. May
Kirby Lumber, com. (guar.)
Common (guar.)
114 Sept.10 Holders of roe. Aug. 31
Common (guar.)
Doe. 10 Holders of rec. Nov.31
Kroger Grocery dr Baking, com.(quar.)25e. June 1 Holders of rec. May 30
Kuppenheimer (B.) & Co., common._ 81
July 2 Holders of roe. June 10a
14 June 2 Holders of rec. May 23a
Preferred (guar.)
20
Lake Shore Mines,Ltd.(guar.)
June 16 Holders of reo. June 24a
Landers, Frary & Clark (mtille.)
*750. June 30 *Holders of rec. June 211
Monthly
*750. Sept.30 *Holders of rec. Sept.21
Monthly
*750. Dec. 31 *Holders of roe. Dec. 22
Land Title Bldg. Corp.(Phila.)(NO. 2.) 314 June 30 Holders of ree. June 11
*114 May 31 *Holders of roe. May
Langton MonotyPe Machine (qual.)
$1
May 31 Holders of rec. Apr. 21
Lehigh Coal & Nay.(guar.)
30
75o. June 1 Holders of roe. May
Lehn & Fink Products. corn. (guar.)
15a
Management stock
7140. June 1 Holders of rec. May 15
*314 July 2 *Holders of rec. June 16
Libby, McNeill & Libby. pref
Libby Owens Sheet Glass, cam.(gu.)... *500. June 1 'Holders of rec. May 22
*14 June 1 *Holders of rec. May 22
Preferred (guar.)
Liggett & Myers Tobacco CoJune 1 Holders of rec. May
$1
Common and common B (guar.)
June 1 Holders of rec. May 15a
Lima Locomotive Works. corn.(guar.)._ $1
15
*500. June 1 *Holders of rm. May 15
Loblaw Grocerterlas (guar.)
500. June 30 Holders of roe. June 206
Loew's. Inc., common (guar.)
Common (pay. In common stock)._ I 25c. June 18 Holders of roe. June 9a
14 June 1 Holders of rem May
Lord & Taylor, 1st pref.(gum.)
82.50 June 1 Holders of rec. May 17a
Ludlow Mfg. Associates(guar.)
5
3714e. June 15 Holders of roe. JIMA 5
Lunkenheimer Co., corn. (guar.)
14
14
14
14
14
14
154
14
3255
Per
When
Cent. Poyablo.
Name es Company.
Books Closed
Days Inclusive.
Miscellaneous (Contenuedl.
Manhattan Shirt, common (guar.)
50c. June 1 Holders of rec. May 17a
Marmon Motor Car, common (qual.)...'Si
June 1 *Holders of rec. May 15
May Dept. Stores, corn. (guar.)
June I Holders of rec. May 15a
$1
Common (guar.)
Sept. 1 Holders of roe. Aug. 150
El
May Hosiery Mills. prof. (guar.)
31 June 1 Holders of rec. May 22
McCahan (W.J.) Sugar CO., Pl.
- 14 June 1 Holders of rec. May 21a
McCrory Stores, corn. & corn.B (guar.). 50c. June 1 Holders of rec. May 214
McIntyre Porcupine Mines (guar.)
250. June 1 Holders of rec. May la
McLellan Stores. class A & B(No. 2)...
100 Oct. 1 Holders of ree. Sept.2041
MengelCompany, pref.(guar.)
14 June 1 Holders of roe. May 18
Merchants & Mfrs.Secur.prior pf (guar.) 411.75 July 16 *Holders of rec. July 2
Participating pref.(guar.)
*37140 July 2'Holders of rec. June 15
Mergenthaler Linotype (guar.)
$1.25 June 30 Holders of rec. June 60
Extra
250. June 30 holders of rec. June 6a
Merrimack Mfg., corn. (guar.)
214 June 1 Holders of roe. May 3
Metro-Goldwyn Pictures, pf. (gu.)
4740. June 15 Holders of rec. May 26a
Metropolitan Paving Brick, com.(gu.)
50e June 1 Holders of rec. May 15
Preferred (guar.)
*14 July 1 *Holders of rec. June 15
Mid-Continent Petrol.. pref.(qual.)._.. $1.75 June 1 Holders of rec. May 151
Mining Corp. of Canada (interim)
'i234c June 13 *Holders of rec. Mayn29
Minneap-Lloneywell Regulator, corn
81.250 Aug. 15 Holders of rec. Aug. 4
Preferred (guar.)
14 Aug. 15 Holders of rec. Aug. 4
Preferred (guar.) _
154 Nov.15 Holders of rec. Nov. 3
Mitchell (Robert) Co., pref. (qua!).... 14 June 1 Holders of roe. May 15
Mohawk Mining (guar.)
June 1 Holders of rec. Apr. 3(1
51
Montgomery Ward & Co.. Cl. A (qual.). *31.75 July 1 *Holders of rec. June 20
Montreal Cottons, Ltd., corn. (qual.).. 134 June 15 Holders of rec. May 31
Preferred (guar.)
14 June 15 Holders of rec. May 31
Moore Oil Refining, pref. (qual.)
$1.75 June 1 Holders of rec. May 21
Morris (Philip) & Co., Ltd.. Inc. Mu.)260. July le Holders of rec. July 24
Quarterly
25e. Oct. 15 Holders of ree. Oct. le
Quarterly.
25e4a n.16'29 Hold, of ree Jan 2 '29a
Mtge. Security Corp. of Ara.. com.(gu.) *50c. June 1 Holders of rec. May 18
First preferred (guar.)
81.75 June 1 Holders of rec. May 18
Second preferred (guar.)
$2
June 1 Holders of rec. May 18
Munsingwear, Inc. (guar.)
750. June 1 Holders of rec. May 17a
Murphy (G.C.) Co.(guar.)
25o. June 1 Holders of rec. May 29
Quarterly
25e. Sept. 1 Holders of rec. Aug. 22
Quarterly
25e. Dec. 1 Holders of i.e. Nov. 21
National American Co.. Inc.(quar.)---50c. Aug. 1 Holders of roe. July lela
Quarterly
54)c. Nov. 1 Holders of rec. Oct. 154
olg June 1 *Holders of rec. May 10
National Baking. Pref.(guar.)
National Belles Hess Co.. prof.(qum.). 14 June 1 Holders of rec. May 213
National Biscuit, corn. (guar.)
81.50 July 14 Holders of rec. June 294
Preferred (guar.)
14 May 31 Holders of rec. May 17a
National Casket, pref.(guar.)
14 June 30 Holders of rec. June 15a
National Lead.com.(guar.)
114 June 30 Holders of rec. June 150
Preferred A (guar.)
14 June 15 Holders of rec. June be
Preferred B (guar.)
114 Aug. 1 Holders of rec. July 203
National Sugar Reg.(guar.)
134 July 2 Holders of rec. June 4
National Surety (guar.)
214 July 2 Holders of rec. June 184
National Transit (special)
June 15 Holders of rec. May 31a
87
Nelson(Herman)Corp.. Mock dividend. el
July 2 Holders of reo. June 19e
Stock dividend
Oct. 1 Holders of ree. %Maga
el
Newberry (J. J.) Co.. pref.(guar.)
81.75 June I Holders of roe. Mayel5a
New York Auction Co.. corn. (guar.) -- "3714c June 15 *Holders of rec. June 1
N. Y. Petroleum Royalty, corn. (No.1)_ '250. June 30 "Holders of rec. June 20
Preferred (guar.)
*14 June 30 *Holders of rec. Junr 20
No. Atlantic Oyster Farms, A (qual.).. 50c June 1 Holders of rec. May 26
15e June 1 Holders of roe. May 10
North Central Texas 011 (guar.)
Northern Pipe Una
July 2 Holders of rec. June 15
3
Occidental Petroleum (gum.)
*30 June 30 *Holders of rec. June 30
Ogilvie Flour Mills, pref. (guar.)
14 June 1 Holders of rec. May 22
*50e June 15 *Holders of rec. May 15
Ohio 011 (guar.)
Otis Elevator. pref.(guar.)
14 July 16 Holders of roe. June 308
Preferred (gum)
114 Oct. 15 Holders of roe. Sept. 293
Owens Bottle, com. (guar.)
75o July 1 Holders of rec. June'156
Preferred (guar.)
14 July 1 Holders of rec. June 15a
Packard Motor Car Co.(monthly)
250 May 31 Holder of roe Ma% 150
Monthly
250 June 30 Holders of rec. June 15a
Monthly
25e. July 31 Holders of rec. July 140
Monthly
2.50. Aug. 31 Holders of rec. Aug. 15a
Paraffin° Co.'s Inc.(guar.)
760. June 27 Holders of rec. June Ma
Extra
4250. June 27 Holders of rec. June dlea
Par. Fam. Lasky Corp.. cum.
July 2 Holders of rec. June 8a
32
Park & Tilford (guar.)(No.1)
0750, July 14 Holders of rec. June 29
Stock dividend (guar.)(No.1)
July 14 Holders of rec. June 29
ol
Ponder(D.) Grocery Co.. pref. A (guar.) 87140. June 1 Holders of rec. May 19
Pennsylvania-Dixie Cement. com.(Qu.). *50c. July 1 *Holders of rec. June 15a
Preferred (guar.)
134 4June15 Holders of rec.dMay 31a
Penn-Mez. Fuel
*S1.25 May 31 *Holders of rec. May 19
Perfection Stove (monthly)
3714c May 31 Holders of roe. May lea
Monthly
3714c June 30 Holders of rec. June 200
Monthly
3714e July 81 Holders of rm. July 200
Monthly
37540 Aug. 31 Holders of rec. Aug. 200
Monthly
3734e Sept.130 Holders of rec. Sept.250
Monthly
8714e Oct. 31 Holders of roe. Oct. 200
Monthly
3714c Nov. 30 Holders of rec. Nov. 206
Monthly
3734e Dec. 31 Holders of rec. Dec. 20a
Phillips-Jones Corp..COM.(guar.)
750 June 1 Holders of rec. May 190
Phoenix Hosiery, 1st pref.(guar.)
134 June 1 Holders of rec. May 174
Pillsbury Flour Mills, COLO.(guar.)
400 June 1 Holders of rec. May 15a
% preferred (guar.)
114 June 1 Holders of rec. May 16a
Peres-WIntertront, 01. A A B.(guar.)
*75c June 1 *Holders of rec. May 15
Pittsburgh Steel, pref. (guar.)
14 June 1 Holders of rec. May 125
Polar Wave Ice & Fuel A (guar.)
62,4e. June 1 Holders of rec. May 15
Pressed Steel Car, pref. (guar.)
114 June 30 Holders of rec. June la
•114i June 15 *Holders of rec. May 25
Procter & Gamble 6% prof. (riu.)
Pro-phy-lac-tic Brush, prof.(guar.)
14 June 15 Holders of rec. May 31
Prudence Co.. Inc., pref.(guar.)
134 JanI5'29 Holders of reo. Dec. 315
Pure 011, corn. (guar.)
1214c June 1 May 11 to June 5
Purity Bakeries, new corn. (clu.).(No.1) 75c June 1 Holders of no, May 15a
$6 pt. (gu.) (from Apr.12 to June 1) 82.20. JUDO 1 Holders of reo. May 115a
Quaker Oats, common (guar.)
*$1 July 16 *Holders of rec. Jun,
Preferred (guar.)
*14 Aug. 31 *Holders of rec. Aug.
Preferred (guar.)
114 May 31 Holders of too. May la
Real Estate Mtge. Guaranty,Phila.(qu.) 214 June 1 Holders of reo. May 21a
Remington & Rand, Inc. lab pf. 0110
114 July 2 Holders of rec. June d9a
Second preferred (guar.)
July 2 Holders of roe. June 890
2
Republic Iron & Steel, com.(qual.).... 1
June 1 Holders of reo. May 15a
Preferred (guar.)
114 JULY 2 Holders of rec. June 15a
Riverside PortlandCement,com.(mth).V.) *50c. June 1 *Holders of roe. May 15
Roxy Theatres Corp. cl. A (gu.)(No.1)
.8740 June 1 Holders of Teo. May 15
Ruddy (E. L.) Co., Ltd., pref. (qu.).
14 June 1 Holders of Leo. MAY 15
St. Joseph Lead (guar.)
SOc June 20 June 10 to June 20
Extra
25e June 20 June 10 to June 20
Quarterly
50c Sept.20 Sept. 9 to Sept.20
Extra
250 Sept.20 Sept. 9 to Sept.20
Quarterly
600 Dee. 20 Dee. 9 to Doe. 20
Extra
25e Dee. 20 Dec. 9 to Dee. 20
Sanitary Grocery, corn. (guar.)
$2
June 15 Molders of rec. June 5
Preferred (guar.)
1.624 June 1 Holders of rec. May 17
Savage Arms. com.(guar.)
Si June 1 Holders of rec. May 15a
First preferred (guar.)
•14 July 2 'Holders of rec. June 15
Second preferred (guar.)
•14 Aug. 15 *Holders of roe.
1
Schulte Retal Stores, corn,(q.)(in stk.) u% June I Holders of rec. Aug.
May 15a
Common (payable in corn. stock).... 04 Sept. 1 Holders of rec.
Aug.
15
Common (payable in coca. stock).4514 Dec. 1 Holders of roe. Nov. 15
Common (payable in corn. stock).... 104 Mar.'29
&emits Retail Stores, ooze.(gum)
8714c June 1 Holders of rea. May 150
Common (guar.)
8734c Sept. 1 Holders of rec. Aug. 154
Common (qual.)..
87340 Dec. 1 Holders of rm. Nov. 153
Sheffield Steel (payable in stock)
* 33 1-3 July 1 *Holders of roe. June 15
Sherwin-Williams Co.. pref.(qua!).... 154 June I Holders of rec. May 15
Shippers' Car Line Corp. pref.(qual.).. $1.75 May 31 Holders of rec. May 18
Shubert Theatre (guar.)
$1.25 June 15 Holders of rec. June 1
Simmons Company (guar.)
Holders of rec. June 14a
75e. July
Simon (Franklin) Co., pref. (guar.).- 134 June 2
1 Holders of rec. Niay.18a
Eamon (H.) A Sons, Ltd.(Montreal).
pt.(gu.),(No.1)from Mar.19 to June 1 31.41 June 1 Holders of rec. May'15
Skelly Oil (guar.)
50e. June 15 Holders of rec. MAY 150
SILO
Name of Company.
When
Per
Cent. Payable.
Books Closed
Days Inchulas
Miscellaneous (Concluded).
Southern Grocery Stores, corn.(quar.)_ - *12Sic June 1 *Holders of rec. May 15
(032Sic June I *Holders of rec. May 15
Class A (guar.)
Spalding (A. G.) & Bros., gen. stk.(qu.) 21.25 July 16 Holders of rec. July 3
First preferred (quar.)
134 June 1 Holders of rec. May 18a
June 1 Holders of rec. May 18
2
Second preferred (guar.)
Spear & Co.,(1st & 2d pref.(guar.).- 1,‘ June 1 Holders of rec. May 15a
Specialized SharesCorp.,cm.(qu.)(No.1) 12340. June 1 Holders of rec. May 18
75e, June 1 Holders of rec. May 18
Class A preferred (guar.)
750. June 1 Holders of rec. May 18
Class B preferred (guar.)
75o. June 1 May 16 to May 31
Standard Internat. Sec., pref. (guar.). _
62Sic June 15 Holders of rec. May 15a
Standard Oil (Calif.). corn. ((Mar.)
'62340 June 15 *Holders of rec. May 16
Standard Oil (Indiana)(guar)
•250. June 15 *Holders of ree. May 16
Extra
62e. June 20 May 27 to June 20
Standard 011 (Nebraska) (guar.)
June 15 Holders of rec. May 25a
25c.
011
J.)
(N.
Standard
($25 par) (11U.)
12340. June 15 Holders of rec. May 250
$25 par value (extra)
June 15 Holders of rec. May 250
1
$100 par value stock (guar.)
50e. June 15 Holders of rec. May 250
$100 par value stock (guar.)
40e. June 15 May 20 to May 30
Standard 011(N. Y.) (guar.)
14,( June 1 Holders of rec. May 11
Standard 011 (Ohio), pref. (guar.)
3740. June 1 Holders of rec. May 15
Stix-Baer-Fuller, corn. ((M.)
750. July 2 Holders of rec. June 150
Stroock (S.)& Co., Inc.(guar.)
$1.25 June 1 Holders of rec. May 10a
Studebaker Corp., corn.(guar.)
134 June 1 Holders of rec. May 10a
Preferred (guar.)
25e. June 15 Holders of rec. May 25a
Sun Oil, corn. (guar.)
134 June 1 Holders of rec. May Illa
Preferred (guar.)
Swan-Finch Oil Corp., pref. (guar.).- '1% June 1 *Holders of ree. May 10
of rec. May 17
Taunton, New Bedford Copper (guar.)-- .$2 May 31 'Holders of
rec. May 31a
Tennessee Craver & Chem.(guar.)._ _ _ 12340. June 15 Holders of
rec. June la
750. July 1 Holders
Texas Corp.(guar.)
rec. June la
of
Holders
15
June
$1
Texas Gulf Sulphur(qual.)
Thompson (Joan R Co (monthly).- 30c June 1 Holders of rec.. May 23a
June 80
ree.
of
Holders
2
July
141
((iu.)
pf.
011,
Tide Water Associated
May 31
Timken-Detroit Axle, pref. (gear.).- 134 June 1 May 20 ofto
rec. May 18a
$1 June 5 Holders
'Timken Roller Bearing (guar.)
May 18a
rec.
of
Holders
5
June
250.
Extra
250. July 10 Holders of rec. June 300
Transue & Wms.Steel Forg.,corn.
,1,‘
4
21
of
May
rec.
*Holders
1
June
on Steel, pref.qu
134 July 2 Holders of rec. June 20
Underwood Computing Mach. pf. (11U.)
June 30 Holders of rec. June 15a
Underwood-Elliott Fisher, corn.(guar.). $1
$1.75 June 30 Holders of rec. June 15a
Preferred (guar.)
$1.75 June 30 Holders of rec. June 15a
Preferred B (guar.)
Aug. 10 Holders of roe. Aug. 1
62340
Union Storage (guar.)
62%e Nov.10 Holders of roe. Nov. 1
Quarterly
$1.25 June 1 Holders of rec. May 166
Union Tank Car (guar.)
400. June 1 May 19 to May 31
United Biscuit. corn. (guar.)
July 2 Holders of rec. June 20
$I
United Fruit (guar.)
75e June 15 Holders of rec. May 31
.
(qu.)
pref.
Securities,
Investors
United
July 16 *Holders of rec. July 2
81.50
United Paperboard, preferred (quar.)
*31.50 Oct. 15 *Holders of rec. Oct. 1
Preferred (guar.)
6'29 *Holders of rec. Jan. 2'29
Jan
411.50
Preferred (guar.)
411.50 Ap15'29 *Holders of rec. Apr. 1 '29
Preferred (qua .)
of reo. June 20a
United Piece Dye Works. 634% pf. (qu.) 134 July 2 Holders of
roe. Sept. 200
1% Oct. 1 Holders
634% preferred (guar.)
1% Jan2'29 Holders of tee. Dee, 20a
634% preferred (guar.)
roe. June la
of
Holders
15
June
2%
corn.
(GU.)
U.S.Cast Iron Pipe & Fdy
2% Sept. 15 Holders of roe. Sept. la
Common (guar.)
2% Dec. 15 Holders of roe. Dec. la
Common (guar.)
144 June 15 Holders of rec. June la
Preferred (guar.)
134 Sept. 15 Holders of reo. Sept. la
Preferred (guar.)
Dec. 15 Holders of rec. Dee. la
1%
Preferred (guar.)
of tee. May 115a
U.S. Dairy Products. el A (an.)(NO. I) $1 May 31 Holders of
rec. May 16a
$1.75 June 1 Holders
First preferred (guar.)
rec. May 160
of
Holders
I
June
$1.75
Second preferred (guar.)
•75e. June 11 Holders of rec. May 18
U. S. Freight. corn. (qual.)
•40c. June 30 Holders of rec. June 15
U. S. Gypsum, corn. (guar.)
•15‘ June 30 Holders of rec. June 15
Preferred (guar.)
$1 June 1 Holders of rec. May 216
U.S. Hoffman Machinery (guar.)
1% July 2 Holders of rec. June 9a
(guar.)
pref.
prior
U.S.Leather,
July 2 Holders of rec. June 20
411
U.S. Playing Card (guar.)
U.S. Print. & Litb. 2d pref. (guar.).- 1% July 1 June 21 to June 30
Oct. 1 Sept 21 to Sept.30
1%
Second preferred (guar.)
1% Jan 1'29 Dee. 22 to Dec. 31
Second preferred (guar.)
June 15 Holders of rec. May 250
SI
U.S. Realty & Impt.(guar.)
144 June 29 Holders of rec. May 310
U.S. Steel. coin.(guar.)
1% May 29 Holders of rec. Apr. 30a
Preferred (guar.)
75e. June 20 Holders of rec. May 31
Vacuum Oil (guar.)
1% June 15 Holders of ree. June 11
Valvoline 011, corn. (guar.)
Vapor Car Heating14( June 10 Holders of rec. June la
Preferred (guar.)
134 Sept. 10 Holders of rec. Sept. la
Preferred (guar.)
1% Dec. 10 Holders of rec. Dec. la
Preterred (guar.)
June 1 Holders of rec. May 1
*144
Veeta Battery, Pref. (guar.)
fg June 1 Holders of rec. May 16a
Va.-Carolina Chemical, pr. pf.(guar.)._
July 3 Holders of rec. June 15
$1
Wabasso Cotton Co.(guar.)
50e. July 4 Holders of rec. June 15
Bonus
July 2 Holders of rec. June 15a
$2
Ward Baking,corn. A (guar.)
141 July 2 Holders of rec. June 15a
Preferred (guar.)
•50o. June 1 Holders of roe. May 15
Waitt & Bond. class A (guar-)
•27440 July 2 Holders of rec. June 15
Class B (qual.)
•750. June I Holders of rec. May 15
Wayagamack Pulp & Paper (guar.)
25e. May 31 Holders of rec. May 21
Welch Grape Juice, corn. (guar.)
134 May 31 Holders of recs. May 21
Preferred (guar.)
134 June 1 Holders of rec. May 15
Wesson 011 & Snowdrift, pref. (guar.)._
June 1 Holders of rec. May Ila
Western Dairy Products, cl. A (guar.)._ $1
334 July 1 June 21 to June 30
Western Grocer Co.. pref
July 2 Holders of roe. June 5
87340.
(qual.)
prof.
West Kentucky Coal,
June 1 Holders of roe. May 15
2
Wheatsworth, Inc., pref. (guar.)
134 June 1 Holders of rec. May 15
White (J. 0.)& Co., pref.(guar.)
1 Holders of tee. May 15
June
1%
(qual.)White (J. G.) Engin'g. pref.
14( June 1 Holders of reo. May 15
White(J. G.) Mag'n't Corp., pref.(qu.)
30 Holders of rec. June 15a
June
250.
(guar.)
corn.
White Motor,
$1.75 July 1 Holders of roe. June 20
Wire Wheel Corp. preferred (guar.)- 31.75 Oct. 1 Holders of rec. Sept.20
Preferred (guar.)
$1.75 Jan.1'29 Holders of rec. Dec. 26
Preferred (guar.)
June 1 Holders of roe. May 20
411
Woodward Iron (guar.)
June 1 Holders of ree. Apr. 26
$1.25
(guar.)
Co
W.)
Woolworth (F
May 31 Holders of rec. May 150
500.
Wright Aeronautical Co. (guar.)
250. June 1 Holders of rec. May 20a
Wrigley (Wm.) Jr. Co.(monthly)
2 Holders of rec. June 20a
July
25e.
Monthly
250. Aug. 1 Holders of roe. July 200
Monthly
1 May 26 to May 31
June
2-30
_
(mthly)
A
corn.
Cab,
Checker
Yellow &
2-3e July I June 26 to June 30
Common class A (monthly)
2-3e Aug. 1 July 26 to Jay 31
Common class A (monthly)
2-11e Sept. 1 Aug. 26 to Aug. 31
Common class A (monthly)
2-30 Oct. 1 Sept.26 to 8.0.30
Common class A (monthly)
2-3o Nov. 1 Oct. 26 to Oct. 31
Common class A (monthly)
2-3e Dec. 1 Nov. 26 to Nov. 30
Common class A (monthly)
rec. June 20
Young (L. A.) Spg. OC Wire,com.(on.) 50e. July 2 Holders of
Holders of rec. June 20
July
5e.
(extra)
Common
June 20
rec.
of
Holders
6 Sic. July 2
Convertible preferred (guar.)
1.25 June 30 Holders of rec. June 140
Youngstown Sheet & Tube, corn. (qu.)...
14
June
rec.
of
Holders
30
June
14(
Preferred (guar.)
* 1.50 June 1 *Holders of rec. June 15
Zellerbach Corp., pref.(guar.)
that stook
•From unofficial sources. t The New York Stock Exchange hae ruled
further notice. t The
will not be quoted ex-dividend on this date and not until will
ex
quoted
be
not
stock
has
that
ruled
New York Curb Market Association
dividend on this date and not until further notice.
stock.
a Transfer books not closed for this dividend. .1 Payable in Preferred
Correction. e Payable In 'stock. f Payable in common stock. g Payable In
scrip. h On account of accumulated dividends.
Payable also to registered holders same date, transfer book being closed from
May 16 to May 31. both inclusive.
payable either In cash or class A stock
I Araociated Gas & Electric dividends
of 1-40 share, on $6 pref. 3 33-100s shares class A
SS follows: on clam A stock at rate share class A stock; on original pref. at ate of
stock; on $6.50 pref. 3.61-100th,
2.22-100ths share; on $7 pref., 3.89-100ths share.
clam A stock, at rate of one-flftleth of a share for each
f. m Payable either in cash or
share held.
[VOL. 126.
FINANCIAL CHRONICLE
3256
n N.Y. Curb Market rules Mining Corp. of Canada be ex-dividend on May 25.
o Park & Tilford declared a dividend of $3 cash and 4% In stock for the year.
Payable In quarterly installments, first installment payable as above.
p Payable either in cash or class A stock at rate oft share for each 40 shares held.
r British American Tobacco dividend is 10 pence per share. Dividends received
on order in London on or before June 8 will be In time for payment of dividends to
transferees.
s At rate of 534% per annum for month of April and May.
Shulte Retail Stores declared 2% In stock, payable Si% quarterly.
Weekly Return of New York City Clearing House.Beginning with Mar.31, the New York City Clearing House
Association discontinued giving out all statements previously
issued and now makes only the barest kind of a report. The
new return shows nothing but the deposits, along with
the capital and surplus. We give it below in full:
STATEMENT OF THE MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR THE WEEK ENDING SATURDAY, MAY 19 1928.
*Surplus ct Net Demand
Deposits
Undivided
Average.
ProfUs.
*Capital.
Clearing House
Members.
Bank of N.Y.& Trust Co____ 6,000.000 12,864,800
Bank of the Manhattan Co_ _ _ 12,500,000 19.258,700
Bank of America Nat. Assoc_ n5,000,000 .37,000,000
75,000.000 70.380.500
National City Bank
5.000.000 19.083.500
Chemical National Bank
National Bank of Commerce. 25.000.000 45.596.000
Chat.Phenis Nat.Bk.derr.Co. 13,500.000 14.718.000
5,000,000 26.440,500
Hanover National Bank
11.000.000 17.667,500
Corn Exchange Bank
10,000 000 25,257.600
National Park Bank
10,000,000 84,391,300
First National Bank
Amer. Exchange Irving Tr.Co 32,000,000 31,866.200
1,000,000 1,368.800
Continental Bank
50,000,000 57,470.000
Chase National Bank
500,000 3,369,000
Fifth Avenue Bank
1,000,000 1.931,900
Garfield National Bank
9,000,000 14,081,600
Seaboard National Bank
5,000,000 6,378,800
State Bank di Trust Co
20,000,000 42.591.000
Bankers Trust Co
5,000,000 11,015,400
13. S. Mtge. & Trust Co
Title Guarantee & Trust Co- 10.000.000 21.767,200
30.000,000 37,468.300
Guaranty Trust Co
4,000,000 3,636,800
Fidelity Trust Co
3,000.000 3.757,000
Lawyers Trust Co
10.000,000 23.775.200
New York Trust Co
Farmers Loan & Trust Co-_ 10.000,000 21,728,300
30,000,000 25,574,100
Equitable Trust Co
1,400,000 3,633,800
Dolonial Bank
Clearing Non-Members.
)race National Bank
Slechanice Tr. Co., Bayonne.
1,000,000
500.000
$
9,235,000
30,583,000
49,342,000
168,296,000
5,604,000
51,262.000
45,266.000
2,999,000
30,483,000
18.023,000
11,955,000
55.445,000
600,000
54,820,000
989,000
376,000
6,239.000
60,928,000
53,885,000
4,236,000
1,983,000
101,398,000
5,214,000
4.131,000
39,362,000
24,649,000
46,538,000
6,862,000
9,964,000
3.624,000
3.765,000
5,823,000
2,017,800
739,700
11 my.
A n• •rus rIall• a o• onn on^ X A 1I C a,
Lu.vs ,,,mns
.VV.Inn, 001 c.n.ouv
•••
Arltrafe,
62,370,000
145,646,000
153,171,000
a888,759,000
133,466,000
311,129,000
183,771,000
127,554,000
181,397,000
132,571,000
251.992.000
390,469,000
7.905,000
6583,011,000
26,019,000
15.893.000
131.459,000
37,385,000
0361,861.000
59,575,000
42,007,000
d464,508.000
43,601,000
21.420,000
146.164,000
el23,991,000
(344,922,000
30,075,000
$
$
$
Time
Depattits
•gts
IIIIIN Ong IlAll
•
U..r..
•As per official reports-National. Feb.28 1928: State. Mar.2 1928; Trust Co.'s,
Mar.2 1928; as of April 28 1928.
Includes deposits in foreign branches:(a) 3281,936,000;(b) $15,035,000;(c)
570.000; (d) 583,029,000; (e) $2,206,000; (1) 399,359,000.
Boston Clearing House Weekly Returns.-In the
following we furnish a summary of all the items in the
Boston Clearing House weekly statement for a series of weeks:
BOSTON CLEARING HOUSE MEMBERS.
May 23
1928.
Changesfrom
Previous Week
May 16
1928,
May 9
1928.
$
$
$
3
83,400,000
83,400.000
83,400,000 Unchanged
Capital
96,607,000
96,607,000
96,607,000 Unchanged
Surplus and profits
Loans, disc'ts & investls. 1,142,467,000 -2,627,000 1,145.094,000 1,145.012,000
697.010.000 -6,891,000 703,901,000 699,599,000
Individual deposits
151,657,000 -5,715,000 157,272.000 160,110,000
Due to banks
-567.000 293,077.000 293,351,000
292.510,000
Time deposits
6.878,000
5,792.000
3,380.000 -2,412,000
United States deposits._ _
-7.908,000
35,904,000
36,867,000
28.959,000
House
Clg.
for
Exchanges
80,704.000
85,615,000
84,083,000 -1,532,000
Due from other banks_
-870,000
85,917,000
86.168,000
85.047,000
Res've in legal deposit:1es
9,219,000
-221,000
9,409,001)
8,998.000
Cash in bank
905.000
812.000
-272,000
540.000
Res've excess in F.R.Bk.
Philadelphia Banks.-The Philadelphia Clearing House
return for the week ending May 19, with comparative figures
for the two weeks preceding, is given below. Reserve
requirements for members of the Federal Reserve System
are 10% on demand deposits and 3% on time deposits, all
to be kept with the Federal Reserve Bank. "Cash in vaults"
is .not a part of legal reserve. For trust companies not
members of the Federal Reserve System the reserve required
is 10% on demand deposits and includes "Reserve with
legal depositaries" and "Cash in vaults."
Beginning with the return for the week ending May 14, the
Philadelphia Clearing House Association discontinued showing
the reserves and whether reserves held are above or below requirements. This will account for the queries at the end of the
table.
Week Ended May 19 1928.
Two Ciphers (00)
omitted.
Trust
limbers of
F.R.System Companies.
54,300,0
Capital
Surplus and profite_. 168,286,0
Loans, disc'ts & invest. 1,026.549.0
43,935,0
Exch. for Clear. House
97,848,0
Due from banks
131,742,0
Bank deposits
645,235,0
Individual deposits
207,556.0
Time deposits
984,533,0
Total deposits
RRS. with legal dram..
72,030.0
Res. with F. R. Bank.
9.705,0
Cash in vault*
81.735,0
Total Res.& cash held.
5
Reserve required
Excess reserve and cash
t
In u•01.
May 12
1928.
May 5
1928.
Total.
63.300,0
63,300.0
63,300,0
9,500,0
17,914,0 186,200,0 186,231,0 186.231.0
104,918,0 1.131,467,0 1,129,907,0 1,124,909,0
47.665,0
46,397.0
44,924,0
989,0
94,819,0 102,996.0
98.609,0
761,0
3,566.0 135,308,0 137,407.0 139.038.0
54,009,0 699,244,0 697,209,0 689,324.0
30,159,0 237,715,0 234.147,0 235,448.0
87,734,0 1,072,267.0 1,068.763,0 1,063,810,0
9.086.0
9,084.0
9,412,0
9,412.0
71,518,0
73.230.0
72,030.0
11,781,0
12,569,0
12,617,0
2,912,0
92,384.0
93,883.0
94.059,0
12,324.0
5
81,530,0
5
5
?
4
5
members.
• Cash In vault not counted as reserve for Federal ReStirV0
10,854.0
MAY 26 19281
FINANCIAL CHRONICLE
3257
Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon, May 24, 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 appear on page 3217. being thefirst item in our department of "Current Events and Discussions."
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOSE OF BUSINESS MAY 23 1928.
May 23 1928.1May 16 1928. May 9 1928. May 9 1928.1Ayr. 25 1928. Apr. 18 1928. Ayr. 11 1928.IAyr. 4 1928. May
25 1927.
RESOURCES.
$
$
$
$
Gold with Federal Reserve agents
1,130,353.000 1,153,806,000 1,163,937.000 1,190,083.000 1.207.703,000 1,279,070,000 1.287,089.000 1,247.059.000 1,651,246,000
Gold redemption fund with U. S. Treas.
68.114,0001 71.783,000
64.544,000
59.661,0001 59.090,000
50,671.000
57,383.000
58.841.000
47,130,000
Gold held exclusively agst. F.R.notes 1,198.467,0001,225,589.000 1,228,481.000 1.249.744,0001 1,266,793,000 1,329.741.000 1.344,472.000
1.305.900,000
Gold settlement Wm" with F.R. Board_
814.595,000 796,154,000 816,081.000 859,878,000; 835,001,000 773.029,000 750.575,000 794.067.000 1,698,376,000
552,216,000
Gold and gold certificates held by banks _ 621,230,000 619,066.000, 645.490.000 599.808,000 621,479,000 616,868,000 653.750,000
643.562.000 761,385,000
Total gold reserves
2,634,292,000 2,640.809,0002,690,052.000 2,709.430.000 2,723,273,000 2.719.438,0002.748.797.000 2,743,529.000 3,011,977,000
Reserves other than gold
161,093.000 160,828,000, 157,847,000 159.020,000 162,551,000 165,087.000 163,864,000 164.442,000 165,848.000
1
Total reserves
2,795,385,000 2,801,637.000 2,847,899,000 2,868.450.000 2,885,824.000 2.884.525,000 2,912,661,000 2,907,971.000 3,177,825,000
Non reserve cash
67,627,000
64,189,0001
64,619,000
62.790.000 65.499,000
67.323.000
67.115.000
61.504.000
60,197,000
Bills discounted:
Secured by U. S. Govt. obligations _ 574,589,000 548,566.000 507,508,000 510,252,000 462,771,000 391,580.000 391.357.000
350,602.000
Other bills discounted
272.883,000 258,846,000' 269,633,000 246.802.000, 246,302,000 228,037.000 227,322.000 250,874,000 228,715,000
199,905,000
Total bills discounted
847,472,000 807.412,000, 777.141,000 757,054.000 709,073.000 619.617,000 618,679,000 601.476.000 428,620,000
Bills bought in open market
330,562,000 347,292,0001 365,104.000 363.101.000 365.841.000 350,756,000 361,595.000 343,636.001: 236,170,000
U.S. Government securities:
Bonds
56,528,000
54,544.000, 56,002,000
54.880.0001 55,237,000
56,559.000
56.609.000 56,233,00t
Treasury notes
85,160,000 100,417,000, 101,977,000 100,886,000 107.560.000 123,124.000 151.763,000 163,947.001 105,173,000
93,978.000
Certificates of indebtedness
58,793,000 107.359,000; 119,413,000 136.536.000 141,958,000 161.003.000 169.644.000 163.052.00( 122,769,000
Total U. S. Government securities_ _ _ 230,481,000 262,320,000 277,392,000 292,302.000 304,755.000 340.686,000
378.016.000 383.232,001 321,920,000
Other securities (see note)
990,000
990,000:
990.000
990,0001
990,000
990,000
990,000
990,001
1,800.000
Total bills and securities (see note)._
1,409,505,000 1,418,014,000 1,420,627,000 1,413.447.000 1.380,659,000 1.312,049.000 1,359,280,000 1,329.334.00(
988.510,000
Gold held abroad
59,548,000
Due from foreign banks (see note)
571,000
570,0001
570,000
570.0001
570,000
570,000
570,000
570,001
650,000
Uncollected items
656,931,000 766,598,000 638,073,000 697,387.000 633,613,000 755.687,000, 660.197.000 674.074,001
639,383.000
Bank premises
60,014,000
59,551.0001 59,437.000
59,421,000; 59,409,000
59.378,000' 59,375.000
59,274.00(
58,882.000
All other resources
9,439,000
9.482,000
9.880,000
10,122,0001
9,452,000
9,677,000
10.396.000
10.131,001
13,509,000
Total resources
4,999,472,000 5,120,041,000 5,041,105.000 5,112,187.000 5,035,251,000 5,088.984,000 5,069.594,000 5,042,858.00.
1,998,514,000
LIABILITIES.
F. R. notes in actual circulation
1,579,383,000 1,583,095,000 1,591,228,000 1,590,639,000 1,572,612,000 1.582,014,00011.588.769.000
1,601.010.00 ..705,804,000
Deposits:
Member banks—reset vs account
2,369,648,000 2,382,156,00012,426,184,000 2,441.860.00012.417,377.000 2,392,347.000 2,432.311.000
2,400,808,00.
%2L7,762,000
Government
21,505,000
25,508,000
21.100,000
20,000,000' 33,587,000
6,303.000
19,195,000
9.980.00.
24,185,000
Foreign banks (see note)
5,923,000
5,997,0001
5,708,000
6,317,0001
5,377.000
5,681,0001
7.291.000
5,310.00,
Other deposits
3,757,000
19.459,000
20,492,000
21.144.000
25,344,000
18,278,000
18,955,000
19.644.000
18.589,00.
27,858,000
Total deposits
2,416,535,000 2,434,153,000 2,474,136.000 2,493.521,000 2,474,619.000 2.423.266.0002,478.441.000
Deferred availability Items
612,621,000 712,847,000 587,401,000 640.996,000, 600,791.000 697,397,000 616,919,000 2,434.987.04 ,375,562,000
623.648,00; 5()5,189,000
Capital paid in
139,626,000 139,201.000 138,0.55,000 137,605,000' 137.613,000
.
. .
Surplus
233,319.000 233,319,000 233,319.000 233.319.000 233.319,000 233.319.000
233.319.000 232.319.000 228,775,000
All other liabilities
17.988,000
17,426,0001 16,966,000
16,107,000; 16,297,000
15.382.000, 15.001.000
14.163.000
14,154,000
Total liabilities
4,999,472,000 5,120,041,000 5,041,105,000 5,112,187,000 5.035.251.000 5.088,984,000 5,069,594,000
Ratio of gold reserves to deposits and
5.042,858.000 4,998,514.000
F. R. note liabilities combined
65.9%
65.7%
66.2%
66.3%
67.3%
67.9%1
67.8%1
Ratio of total reserves to deposits and
68.0%
74.7%
F. R. note liabilities combined
70.0%
69.7%
70.1%
70.2%
71.3%
72.0%
Contingent liability on bills purchased
71.6%1
72.1%
78.8%
for foreign correspondents
266.955,000
264,566 265.137,000 261,449.000 281,543,000 262,645,000 242.373.000
242.084.000 159,674,000
Distribution by Maturities$
5
$
1-15 days bills bought in open market _ 115,682,000
$
121,261,000 114,745.000 110,901,000 120.797.000 128,163.000 163.852,0001
1-15 days bills discounted
150.047.000 132,322,000
715,333,000 684,518,000 625,018,000 634.766.000 585.962.000 504,323.000
515.987,000 507,860 000 329,889,000
1-15 days U. S. certif.
. of indebtedness_
3,337,000
6,327,000
5,574.000
5,077.000
4,100.000
5.790,000
1-15 days municipal warrants
3,425.000
940 000
5,524,000
16-30 days bills bought in open market _
64,039,000 63.291,000
77,225,000
80.308,000 68,806,000
60,536,000
16-30 days bills discounted
61.176.000
75.649,000
36,036,000
58,539,000
35.118,000
34,376.000
28,840,000
26.741.000
27,325,000
16-30 days U. S. certif. et indebtedness_
23,930.000
23.851.000
1,186,000
24,429.000
1,288,000
16-30 days municipal warrants
61,584,000
31-60 days bills bought In open market
50,957,000 110,583,000 109,880,000
99,557.000 83,644,000
31-60 days bills discounted
66,287,000
58,903.000
103,120,000
67,775.000
32,390,000
45.179,000
46,661,000
50,603.000 50,317,000
31-60 days U. S. certif. of indebtedness.
47.999,000
40,831.000
36,347,000
36,602,000
1,467.000
11,042,000
15.242,000
31-60 days municipal warrants
23,028,000
61-00 days bills bought in open market
40,282,000 44,981,000
55,120,000
64,146.000 82,147.000
61-00 days bills discounted
86,713,000
73.968.000
27.449,000
54 808,000
26,141,000
10,016,000
29,013,000
27,955,000
31,899,000
61-90 days U. S. certif. of indebtedness_
28.708,000
27.689.000
23,957.000
20,797,000
61-90 days municipal warrant
1,773.000
2,000
Over 90 days bills bought in open market
7,439,000
7,176,000
8.134.000
8,189.000
10.447.000
Over 90 days bills discounted
7.057,000
3,696,000
17.697,000
5,357,000
2,903,000
16,456.000
15,073,000
14.890,000
14,154.000
Over 90 days certif. of indebtedness. _ _
11,262,000
10.242,000
84,270,000
9.461.000
16.903,000
99.744,000 112,372,000 120.417,000
122,616.000 132,185,000
Over 90 days municipal warrants
162,110.000
55,661.000
F. R. notes received from Comptroller_ _ 2,799,540.000 2,805.503,000
2,801,173.000
F.It. notes held by F. R. Agent
846,876,000 846,425,000 841,125,000 2.798.800.000 2.795.282.000 2,802,933,000 2,823.286,000 2,812.162.000 2,953.818,000
847,935,000 845.835,000 845,875.000 853.334.000 853,110.000 852,523,000
Issued to Federal Reserve Banks
1,952,664,000 1,959,078,000 1,960,048,000
1.950.865,000 1,949,447.000 1,957.058.000 1,969.952.000 1.959.052,000 2,099,295,000
How Secured—
By gold and gold certificates
354.605.000 345,606,000 354,607.000
416.241.000
Gold redemption fund
95,293.000
99.623.000 101,516,000 106,749.000 415,242.000 413,841,000 413.841.000 414,140.000 390,400,000
91,083,000
Gold fund—Federal Reserve Board
99,360,000
95.943.000 100.639.000
680,455.000 699,577,000 707,814,000
99,284,000
By eligible paper
1,144,458,000 1,124,625.000 1,103,241,000 667,093,000 701,378 000 765,869.000 777,305.000 732,280.000 1,161,562,000
1,076,904,000 1.024,456,000 917.412.000 928,547.000 910,945.000 631,963,000
Total
2,274,811.000 2,278,431,000 2,267,188.000
2.266.987.000 2.232,159.000 2.196,482.000 2.215,636.000 2.158.004.0002.203.209,000
NOTE.—Beginning with the statement of Oct. 7 1925, two new
were added in order to show separately the amount of balances he d abroad and
foreign correspondents. In addition, the caption "All other earning items
amounts due to
assets,"
Previously
made up of Federal Intermediate Credit bank debentures, was changed
"Other securities." and the caption "Total earning assets" to "Total
to
discount acceptances and securities acquired under the provisions of bills and securities." The latter term was adopted as a more accurate description of the total of the
Sections 13 and 14 of the Federal Reserve Act, which,it was stated,are
the only items included therein.
WEEKLY STATEMENT OF RESOURCES AND LIABILITIES OF
EACH OF THE 12 FEDERAL RESERVE BANKS AT CLOSE OF
BUSINESS MAY 23 1928.
Two ciphers (00) omitted.
Total.
Boston. New York. Phila. Cleveland. Richtnona
Federal Reserve Bank of—
Atlanta. Chicago. St. Louis. Minneap. Kan.City. Dallas. San
Fran.
RESOURCES.
$
$
$
3
$
$
$
$
3
Gold with Federal Reserve Agents 1,130,353,0 75.104,0 176.075,0
$
$
$
$
86.005,0 152,727.0 28.972,0 93,087,0 215,505,0 23,502,0 39,586,0
Gold red'n fund with U.S. Treas.
68,114,0 5,658,0
42,512,0
18,553,0
15,685,0 13.870,0 4,587.0 2.388.0 4,560.0 8,271,0
4,304,0 3,621.0 2,122,0 1,527,0 178,725,0
1,621.0
Gold held excl. eget. F.R.notes 1,198,467,0 80,762,0 191,760,0
Gold settle't fund xith F.R.Board 814,595,0 55,600,0 330,820.0 99,875,0 157,314,0 31,360,0 97,647,0 223,776,0 27,806,0 43,207,0 44.634,0 20.080,0 180,248,0
46.445,0
62,873,0
13,248,0
8.528,0
152,935,0 22,868.0 18,057,0 40.308,0
Gold and gold certificates
621,230,0 24,594,0 385,133,0 24,558.0
38,214,0 17,497,0 10,653,0 51,528.0 12.339,0 5,374.0 7,230,0 22,900,0 40,013,0
14,377,0 29.733,0
Total gold reserves
2,634,292,0 160,956,0 907,713,0 170,878,0
258,401,0
62,105,0
428.239,0 63,013,0 66,638,0 92.172,0
Reserve other than gold
161,093,0 15,928,0
34,023,0 7,459,0 13.532,0 13.588,0 116,828,0
15,731,0 18.194,0 13,958.0 2.997.0 6,858,0 57,3.57.0 249,992.0
8,374,0 10,451,0
Total reserves
2,795,385,0 176,884,0 941.736,0 178,337.0
271,933.0 75,693,0
Non-reserve cash
67,627,0 5,025,0
21,857,0 2.070,0 4,101.0 8.051,0 132,559,0 446,433,0 76,971,0 69.635,0 99.030,0 65,731.0 260,443,0
4,819,0
8,403,0
3.972,0 1,540,0 1,940,0 2,765,0
Bills discounted:
3,084,0
574,589,0 42,515,0 250,948,0 39,383,0
Bee. by U. B. Govt. obligati°
47,133,0 15,239,0 14.087.0 75,932,0 26,600.0
272,883,0 27,070,0
Other bills discounted
6,839,0 7.765.0 4,431,0 43,717,0
56,832.0 16.055,0 22.868,0 26.386,0 39,604,0
20.099,0 20.066,0 4,201,0 14,592,0 4.631.0
20,479,0
Total bills discounted
847,472.0 69,585,0 307,780.0 55,438.0
70,001,0 41,625.0
330,562,0 43,752,0
Bills bought in open market
65,249,0 35,866.0 30.231,0 15.580,0 53,691,0 96.031,0 46,666,0 11.040,0 22,357,0 9.062,0 64,196.0
22,497,0 43,934,0
U.S. Government securities:
934,0 20.743,0 13,460.0 14,877,0 23,439,0
56,528,0
Bonds
811,0
1,744,0
682,0
618,0 1,189,0
83.0 20,866,0 7,194.0 4,572,0 10,732,0 7.892.0
85,160,0 1,743,0
Treasury notes
7,462,0 9.029,0 27,040,0
155,0
604,0
88,793,0 5,873,0
Certificates of indebtedness
22,238,0 12,679,0 6,985,0 2,031,0 3,061,0 4,199.0 10,649,0 3.938,0 2,438,0 3.412,0 11,585,0
2.344,0 12,284,0 3.873,0 2,939,0 5.598,0 5,412,0
6.637,0
230.481.0 8,427.0
Total U. 8. Gov't securities
31,444.0 22.390,0 34.643.0 3.824.0 5.488.0 37.339.0
21.7111 n 11 aao n 1571150 111 71A (1 15 577 0
1
1
1
1
3258
[VoL. 126.
FINANCIAL CHRONICLE
RESOURCES (Conauded)Two Ciphers (00) omitted.
Total.
$
990.0
Other securities
Total bills and securities
Due from foreign banks
Uncollected items
Bank premises
Another resources
Boston.
New York.
Phila.
s
$
$
Cleveland. Richmond Atlanta. Chicago. St. LOUIS. Minneap. Kan.City. Dallas. San Fran.
$
a
$
a;
a
$
a
a
$
990,0
404,473,0 113,694,0 134,875,0 61,029,0 81,676,0 177,304,0 69,316,0 44,222,0 54,585,0 40,655,0 105,912,0
51,0
25,0
17,0
35,0
47,0
18,0
218,0
21,0
21,0
13,0
68,0
182,400,0 55,632,0 61,704,0 48,756,0 22,458,0 83,329,0 30,009,0 12,283,0 33,582,0 22,400,0 36,051,0
16,563,0 1,756,0 6,865,0 3,378,0 2,832,0 8,720,0 3,891,0 2,202,0 4,308,0 1,841,0 3,834,0
397,0 1,412,0
547,0
452,0
1.798,0
185.0 1,375,0
691,0
939,0
939,0
644,0
1,409,505,0 121,764,0
37,0
571,0
656,931,0 68,327,0
60,014,0 3,824,0
60,0
9,439,0
Total resources
4,999,472,0 375,921,0 1,569,045,0 351,721,0 480,904.0 197.329,0 245,777,0 725,196,0 184.824,0 130,834,0 194,010,0 133,861,0 410,050,0
LIABILITIES.
F. R. notes in actual circulation_ 1,579,383,0 125,484,0 336,811,0 125,989,0 193,095,0 57,383,0 139.256,0 247,311,0 53,570,0 56.110,0 56,395,0 31,531,0 156,448,0
Deposits:
Member bank-reserve acc't__ 2,369,648,0 255,147,0 947.128.0 135,8.56,0 183,9.52,0 69,259,0 67,908,0 344,129,0 82,212,0 50,815.0 88,975,0 64,736,0 179,531,0
4,128,0
593,0 2,396,0 1,257,0 1,403,0 3,167.0 1,206,0 1,738,0 2,572,0 1,006,0, 1,234,0
805,0
Government
21.505,0
313,0
1,512,0
584,0
639,0
258,0
461,0
215,0
436,0
5,923,0
854,0
264,0
166,0
221,0
Foreign bank
56,0
229,0
981,0
107.0
9,840.0
111,0 1,166,0
58,0 5,663,0
19,459,0
276,0
220,0
752,0
Other deposits
Total deposits
Deferred availability items
Dapital paid in
iurplus
Dlother liabilities
962,608,0
157,825.0
44,086,0
63,007,0
4,708,0
2 416,535,0 156,520,0
612,621,0 64,998,0
139,626,0 9.878,0
233,319,0 17,893,0
17,988,0 1,148,0
137,262,0 187,968,0 70,885,0 69,680,0 349,316,0 83,958,0 52,939,0 92,520,0 86,015,0 186,864,0
51,604.0 59,555,0 49,396,0 20,757,0 74,608,0 30,553,0 10,680,0 31,104,0 22.963,0 38,578,0
14,106,0 14,285,0 6,254,0 5,228,0 18,147,0 5,323,0 3,030,0 4,217,0 4.327,0 10,745,0
21,662,0 24,021,0 12.324,0 9,996,0 32,778,0 10,397,0 7,039,0 9,046,0 8,527,0 16,629,0
1,098,0 1,980,0 1,087,0
860,0 3.036,0 1,023,0 1,036,0
498,0
786,0
728,0
4,999,472,0 375.921,0 1,569,045,0 351,721,0 480,904,0 197,329,0 245,777,0 725,196,0 184,824,0 130,834,0 194,010,0 133,861,0 410,050,0
Total liabilities
Memoranda.
72.5
71.4
59.0
63.4
62.7
67.7
74.8
56.0
63.9
70.0
66.5
67.4
75.9
Fteserve ratio(percent)
Dontingent liability on bills pur76,918,0 25,144,0 27,526,0 13,499,0 11,116,0 36,790,0 11,381,0 7,146,0 9,528,0 9,264,0 18,792,0
chased for foreign correspond'ts 266,955,0 19,851,0
F. R. notes on hand (notes reed
from F. R. Agent less notes in
nirrillfttion
373.281.0 24.457.0 117,616.0 28.016.0 28.395,0 17,148,0 29.300,0 46.123,0 10.637.0 6.603.0 8.534.0 6.491.0 49.961.0
FEDERAL RESERVE NOTE ACCOUNTS OF FEDERAL RESERVE AGENTS AT CLOSE OF BUSINESS MAY 23 1928.
Total.
Federal Reserve Agent at-
Boston.
New York.
Phila.
Cleveland. Richmond Atlanta. Chicago. St. Louis. Minneap. Kan.City. Dallas. San Fran.
$
$
Two ciphers (00) omitted.
F.R.notes rec'd from Comptroller 2,799.540,0 233,791,0
F.R.notes held by F.R. Agent__ 846,876,0 83,850,0
$
$
$
$
$
$
$
$
S
S
$
739,147,0 176,105,0 257,520,0 99,705,0 232,616,0 423,764,0 84,367,0 82,132,0 99,349,0 60,355,0 310,689,0
284,720,0 22,100.0 36,030,0 25,174,0 64,060,0 130,330,0 20,160,0 19,419,0 34.420,0 22,333,0 104,280,0
F.R. notes issued to F. R.Bank_ 1,952,664,0 149,941,0
Collateral held as security for
F. R. notes issued to F. R. Bk.
Gold and gold certificates__ 354,605,0 35,300,0
95,293,0 11,804,0
Gold redemption fund
680,455,0 28,000,0
Gold fund-F.It. Board
1,144.458,0 113,337,0
Eligible paper_
454,427,0 154,005.0 221,490,0 74,531,0 168,556,0 293,434,0 64,207,0 62,713,0 64.929,0 38,022,0 208,409,0
153,160,0
50,000,0 21,375,0 20,000,0
8,300,0 14,167,0
12,303,0 40,000,0
17,915,0 8,028,0 12,727,0 7,597,0 4,887,0 2,505,0 2,702,0 2,419,0 2,652,0 3,250,0 18,807,0
5,000,0 77,977,0 90,000,0
68,200,0 213,000,0 12,500,0 23,000,0 39,860,0 3,000,0 119,918.0
353,936,0 82,615,0 09,547,0 53,206,0 76,035,0 139,817,0 47,189,0 31,719,0 35,621,0 23,900,0 87.536,0
530,011,01168,620,0 252,274,0 82,178,0 169.122,0 355,322,0 70,691,0 71.305,0 78,133,0 42,453,0 266,261
2274.811.0 188,441,0
Total collateral
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 642 member banks from which weekly returns are obtained. These figures are always a week behind
those for the Reserve banks themselves. Definitions of the different items in the statement were given in the statement
of Dec. 12 1917, published in the "Chronicle" of Dec. 29 1917, page 2523. The comment of the Reserve Board upon the figures
for the latest week appears in our department of "Current Events and Discussions," on page 3217, immediately following which
we also give the figures of New York and Chicago reporting member banksfor a week later.
PRINCIPAL RESOURCES AND LIABILITIES OF ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE OF
BUSINESS MAY 16 1928 (In thousands of dollars).
Total.
Federal Reserve DistrictLoans and investments-total
Boston, New York
Phila,
Cleveland, Richmond Atlanta. Chicago. Si. Louis. Minneap. Kan.City. Dallas. San Fran.
s
a
$
$
$
a
a
S
$
15
$
$
22,591,427 1,577.620 8,751,542 1,240,928 2,203,312
$
690,280
628,875 3,303,029
721,749
369.432
678,185
443,168 1,983,307
828,786 1.456,336
517,877
502,785 2,384.881
498,862
236,410
441,371
384,905 1,330,168
Secured by U. B. Gov't obliga.ns
128,091
Secured by stocks and bonds._ __ 6,894,948
All other loans and aLscounts---- 8.915,924
50,541
5,236
422,388 3,137,966
656,063 3,132,388
7,648
449,843
371,295
14,403
661,415
780,518
3,093
176,928
337,856
5,061
21.880
126.268 1,065,379
371,456 1,297,622
4,306
204,266
290,290
2,490
72,741
161,179
3,549
124,314
313,508
3,491
86,689
244,725
6,654,464
493,933 2,430,647
412,142
746,976
172,403
126,090
918,148
222,887
133,022
236,814
108,263
653,139
3,016,884
U. S. Government securities_ _
Other bonds, stocks and securities 3,637,580
191,384 1,180,772
302,549 1,249,875
109,388
302,754
329,465
417,511
77,777
94,626
60,536
65,554
378,932
539,216
80,729
142,158
69,159
63,863
111,638
125,176
75,556
32,707
351,548
301,591
82,286
14,231
131.183
28,199
39,170
11,684
41,919
10,233
266.745
38,46.5
47,868
6,946
25,250
5,596
55,554
11,143
33,845
8,036
116,185
21,551
Loans and discounts-total
.15,936.963 1.083,687 6,320,895
Investments-total
1,762,559
236,367
Reserve balances with F. R. Bank
Dash in vault
get demand deposits
rime deposits
Dovernment deposits
100,505
18.029
822,049
62,254
13,875,252
6,972,044
49,959
956,395 6,204,891
505,599 1,726,434
3.692
16,512
776,105 1.070,826
302,576 964,828
2,724
3,622
362,237
249,679
1,736
341,067 1,880,158
243,174 1,289,893
3,793
6,198
405,548
246,267
1,250
215,725
132,099
596
502,108
178,418
1,184
1,196,686
3,344,942
56,526 160,094
155,353 1,316,133
60,982
184,469
99,399
233,876
51.169
104,031
73,398
117,465
263,428
501,473
53,505
127,285
48,296
92,728
113,473
210,263
Due from banks
Due to banks
4,393
366,751
959,024
301,527 849,575
122,075 1,011,002
2,101
6.551
60,549
97,127
155,867
204,739
3orrow1ngs from F. It. Bank-total
629,284
42,070
254,483
31,320
47,410
24,875
28,399
94,241
22,789
6,756
16,827
4,062
56,052
Secured by U.S. Gov't obliga'na_
All other
458,946
170,338
19,213
22,857
211.660
42,823
21,364
9,956
29,678
17,732
7,307
17,568
12,063
18,336
77,572
16,669
13,319
9,470
4,565
2,191
8,577
8,250
2,928
1,134
50,700
5,352
642
36
79
49
70
66
32
92
20
24
64
45
56
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 May 23 1928, in
comparison with the previous week and the corresponding date last year:
May 23 1928. May 16 1928. May 25 1927.
Resources
Gold with Federal Reserve Agent
Gold redemp.fund with U. S. Treasury..
176,075.000
15,685,000
176.147,000
17,280,000
397,027,000
9,085,000
Gold held exclusively agst. F.It. notes
Gold settlement fund with F. R. Board.
Gold and gold certificates held by bank..
191,750.000
330,820,000
385.133,000
193,427.000
327,518,000
381,971,000
406,112,000
170,122,000
502,240,000
Total gold reserves
Reserves other than gold
907,713,000
34,023,000
902,916.000 1,078,474,000
33,834,000
33.627,000
Total reserves
Non-reserve cash
Silts dascountedSecured by U. S. Govt. obligations.-Other bills discounted
941,736,000
21,857.000
936.543,000 1,112,308,000
14,186,000
21,084.000
250,948,000
56.832,000
237,939,000
58.890,000
61,577,000
31,588,000
307,780,000
65,249,000
296,829,000
69,884,000
93,165,000
74,323,000
1,744,000
7,462,000
22,238,000
1,481.000
12,783,000
32.636,000
19,235,000
16,067,000
29,009,000
31,444,000
46,900,000
64,311,000
404,473,000
413,613,000
231,799,000
Total bills discounted
Bills bought in open market
U.S. Government securitiesBonds
Treasury notes _ Certificates of indebtedness
Total U.S. Government securities
Total bills and securities (See Note)
Resources (Concluded)Gold held abroad
Due from foreign banks (See Note)
Uncollected items
Bank premises
All other resources
Total resources
LiabilitiesFedi Reserve notes in actual circulation
Deposits-Member bank, reserve acct__
Government
Foreign bank (See Note)
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
May 23 1928. May 16 1928. May 25 1927.
$
$
$
16,495,000
218,000
660,000
217,000
182,400,000 211,858,000 171,728,000
16,563,000
16,276,000
16,563,000
1,798,000
3,328,000
2,038,000
1 569,045,000 1,601,916,000 1,566,780,000
336,811,000
340,111,000
402,360,000
947,128,000
4,128,000
1,512,000
9,840,000
943,584,000
11,674.000
1,586,000
9,716.000
883,030,000
3,954,000
2,423,000
20,986,000
962,608,000
157,825,000
44,086,000
63,007.000
4,708,000
966,580,000
183,804.000
43,727.000
63,007.000
4.707,000
910,393,000
150,109,000
38,767,000
61,614,000
3,537,000
Total liabilities
Ratio of total reserves to deposit and
Fed'I Res've note liabilities combinedContingent liability on bills purchased
for foreign correspondence
1,569,045,000 1.601,916.000 1,566.780,000
72.5%
71.7%
84.7%
76,918
74,529,000
43,296
NOTE.-Beginning with the statement of Oct. 7 1925, two new items were added in order to show separately the amount of balances held abroad and amounts due
to foreign correspondents. In addition, the caption, "All other earning meets," previously made up of Federal Intermediate Credit Bank debentures, was changed to
"Other securities." and the caption, "Total earning assets" to "Total bills and securities." The latter term was adopted as A more accurate description of the total of
the difieoUnts, acceptances and securities acquired under the provision of Sections 13 and 1401 the Federal Reserve Act, which. It was stated, are the only items Included
therein.
MAY 26 1928.]
FINANCIAL CHRONICLE
Vaitturs'
New York City Banks and Trust Companies.
azettc
(Ali priced
Wall Street, Friday Night, May 25 1928.
Railroad and Miscellaneous Stocks.-The review of the
Stock Market is guven this week on page 3248.
The following are sales made at the Stock Exchange this
week of shares not represented in our detailed list on the
pages which follow:
STOCKS.
Week Ended May 25.
Salesi
for
1Yeek.1
Range for Week.
Lowest.
Range Since Jan. 1.
Highest,
Lowest.
Highest.
Par. Shares' $ per share. S per share.
Railroadsper share. S per share.
Boston &Maine
100 1,300 80 May 22 81 May 21 58
Feb 83
May
Buff Koch & Pitts_ 100
130 75 May 21 75 May 21 60
Feb 86
Apr
100
Preferred
100 101 May 21 101 May 21 94 Mar 105% Apr
Car CI & ctf Stpd _ _ 100
70 106 May 24 106 May 24 103% Jan 107% Mar
Louis_
__
_100
200 300 May 22 300 May 22 300
C C C Sr St
Apr 315
Apr
100
Preferred
30 115 May 21 115 May 21 109
Mar 120
Apr
Cleve & Pittsburgh .A00
20 81 May 22 81 May 22 81
May 84% Feb
Cuba RR pref
100 420 88%May 21 93 May 25 84
Mar 93
May
Erie & Pittsburgh_ _ _ _50
10 68 May 23 68 May 23 65% Feb 69
May
Havana Elec Ity
• 3,400 13 May 24 15 May 22 10
Mar 15
May
II1CentRR sec stk 00100
150 81%May 22 823May 24 80
Jan 8234 May
Iowa Central
100
10 2%May 24 3%May 23 2
Mar 5% Mar
Minneap & St Louis_ 100 17,500 134May 23 4h May 21 1% May 6% May
Nash Chatt & St L_ _ 100
110 196 May 24 197 May 24 125% Mar 04% May
Nat Rys of Mex lot 0(100
200 6 May 22 6 May 22 3% Feb 8% Apr
New On Tex & Alex _ 100 380 140 May 21145 May 24 125
Apr 147)4 Apr
NY State Rys
100 500 93May 21 10 May 24 7% Mar 12
Apr
Preferred
100
100 30 May 25 30 May 25 26
Feb 33g Apr
Pacific Coast 2d pref_100
280 24 nifty 24 39 May 24 22
Apr 39
May
Patina RR rights
110,300 14May 21 2%May 21 1% Apr 2% Apr
PhIla Rap Transit pf_ _50
10 50 May 22 50 May 22 50
Mar 50
Mar
Pitts Ft W & Chic pf_100
30 161%May 24163 May 21 161% May 167
Apr
Rensallear & Sarat_ _100
40150 May 25 150 May 25 144% Jan 150
May
St L-San Fran pf 1 pd 100 4.300100 May 23 101 May 21 100
May 101
May
So Ry M & 0 Ws_ _100
460 130 May 22 139%May 22 100
Jan 159% Jan
Viskbr Shrev & P pfd 100
60 106 May 22 107 May 25 103% Jan 111
Jan
1
Indus. & Miscell.
I
Abitibi Pow & Pap pf 100 1,500102 May 21 102%May 25 100
Alliance Realty
410 75 May 21 80 May 24 53
Am Mach &Fdy pf(7)100
10220 May 24 220 May 24 215%
Amer Metal pref (7).100 460 125 May 21 127 May 24 110%
Amer Pow & Light pref _ _1 400 106N May 25 107 May 24 106%
Amer Radiator pref_ _100
10 145 h Nlay 24 145%May 24 142
Borden Co rights full pd.) 100 162 May 23 162 May 23 162
Brit Emp Steel 1st pf_100 500 43 May 211 47%May 25 32
Brockway Motor Truck * 9,800 54%May 22 56%May 21 5434
100
Preferred
100 114%May 22 114%May 22 114)4
Brooklyn Edison Ws__
200252 May 25 252 May 25 252
Brown Shoe prof_ _ _ _ 100
90 119 hMay 25111934May 25 117
Central Alloy Steel pf 100
30 109)4 May 21 110%May 25 07
Chickasha Cotton MAO 1,800 48%May 22 50 May 24 48%
Conley Tin Foil stpd_ _• 1,700 1%May 22 1%May 21
Si
Cons Cigar pf
_ _ _100
100107 May 24 107 May 24 98
Container Corp el A _ _20 10,400 3434May 22 35%May 21 21%
Class B
• 16,100 16%May 22 18 May 21 10%
Continental Can rights__ 76,300
%May 21
34 May 24
%
Cushman's Sons pf
80 11494Nlay 24 114%May 24 112%
_•
Cutler-Hammer Mfg_ _10 2,420 57 May 23 5834May 21 56
Debenham SecurIties_5a 1,700 4534May 22 47 May 24 4534
Drug Inc
*35,100 94%May 21 9834Nlay 25 80
Durham Silk Hosiery_50
700 7 May 24 8%May 24 4
Preferred
100
130 40 May 24 4434May 25 35
EitIngon Schild
2,200 3834May 24 40 May 24 38%
Preferred
2,300 110 May 24 111 May 25' 110
Eisenlohr Bros pref. _100
150 90 May 21 92%May 22' 88%
El Pr & Lt pf ctts 40% pd
200 128%May 25 129 May 21 1203.
Elk Horn Coal pref_ _ _50
40 15 May 22 15 May 22 13%
Emerson-Brant cl B___*
100 934 May 21 9%May 21, 2%
Fairbanks Co prof_ _ _ _25
10 934May 23 9%May 23, 9%
General Gas dr El el B__. 400 51 May 23 53%May 25, 37
Gen Ry Signal pre_ 100
10111 May 21 111 May 21'105
Graham-Paige Mot ctfs. 300 32 May 22 32g May 22. 31%
Gulf States St 1st pi_100
50 108%May 25 0834May 25 104
Hackensack Water pf _25
120 2734May 22 2834May 25; 25%
Preferred A
20203 May 23215 May 22'176
25
Harbison Walker Ref 100
10011434May 22 114%May 22110)4
34 May 24
Houston Oil rights
9,700
%May 24;
Si
Jones Bros Tea ctfs..5 8,400 3134May 23 34%May 211 29%
Keith-Albee-Orpheum _• 5,600 193jMay 22 21 May 25; 15%
Preferred
100
800 83 May 24 88 May 22 7534
Kelvinator Corp
*86,400 1834May 22 203jMay 24 15%
Lehigh Portland Cern..50 2,400 52 May 21 5234May 24 51%
Preferred
200 110%1May 24 110%May 24 10834
100
Loew's preferred
• 800 104)4 May 23 106%May 21 9934
McKeesport Tin Plate_• 6,700 6534May 22 69 May 25 65
Maytag Co new
1,400, 2134May 25 22 May 24 21%
Pref with warrants... _ 10,600 50%May 24 52 May 24 50%
1st preferred
100101 May 24 101 May 24 101
Milw Elec Ry & Lt pf 100
20 110 May 24 110 May 24 105%
Nat Eng & Stamp'g rts 11,200 1 May 25 2%May 21
Norwalk Tire As itpf_100
SO' 3434 May 23 35%May 21 33%
Nat Supply pref
100
20 117%May 2.5118 May 24 115
Outlet Co pref
40 114 May 21 114 May 21 112
100
Pac Telep & Teleg pf_100
170 121 May 21 121 May 21 115
Penick & Ford pref. _100
30 105 n May 22 108 May 24 10334
Penns Coal & Coke_ _50
100 11 g May 231 lihMay 23 10
Phillips Jones Corp__• 800 47 May 211 4934May 25 38
100
Pullman Co
50 180 May 23180 May 23 165
Reis(R)& Co lot pf_ 100
2001 73 May 22, 75 May 24 613t
30:106%May 22 112 May 23 101
RemTypewriter 2d p1100
Reynolds Tobacco A_ _25
20,183%May 23 194 May 21 16534
Simmons Co rights
17,1001 1%May 22 1%May 21 1%
Sloss-Shef St & Ir pf _100
300 115%May 25,115%May 25 110%
Stand Sanitary Mfg___.10,1001 39 May 221 4034May 25 39
Preferred
100 126 h May 23'12634May 23 126%
100
Tobacco Div ars A _10 100 2334May 211 2334May 21 2334
•
Trico Products
1,500 39 May 251 39%May 25 39
United Paperboard...100 300 22%May 25 24 May 21 19
linty Leaf Tob pref. _100
10,12234May 22 12234May 22122
100250 May 24250 May 24 250
US Cast Ir P & Fdy ctfs•
Virg El & Pow prof(7)100
104104May 23 110%May 23107)4
Wells Fargo & Co
1
200 234May 22 234May 22 134
Bank, Trust & Insurance Co. Stocks.
140680
Dank of Commerce_ _10
Bank of Manhattan _ 10 1,840 735
40 700
Corn Exchange Ilatik 100
110530
Equit Tr Co of N Y_ _100
40875
National Park Bank _10
May
May
May
May
May
23700
22902
24 735
23565
23920
May
May
May
May
May
21 550
25 560
21 600
24 410
21 642
Apr 102% Apr
Jan 80
May
Jan22534 Apr
Jan 127
May
May 107
May
Jan 152
Apr
May 162
May
Jan 47% May
May 57% May
May 117% May
May 2
May
Mar 120
Jan
Jan 111% May
May 5234 May
Jan 3% May
Jan 107)4 Apr
Mar 36
Apr
Mar 19% Apr
May 134 May
Feb 116% Mar
May 60
Apr
May 49% Apr
Mar 99% May
May 8% May
May 46% Jan
May 40
May
May 111
May
Jan 10034 Feb
Jan 129% Apr
May 19
Feb
Apr 9% May
May 13% Apr
Jan 55
May
Apr 115% Feb
May 36% May
Jan 110
Apr
Jan 28% May
Feb216
May
Jan 115
Apr
May
% May
Apr 3434 May
May 24% May
May 99
Mar
Mar 22% Apr
May 54
Mar
Apr110% May
Mar 110% Apr
May 72% May
May 22
May
May 52
May
May 101
May
Apr 110
May
3% May
Jan 45
Jan
Apr 119
Jan
Apr,114% May
Jan;12534 May
Jan 115
Mar
Feb 1434 dal)
Apr; 53% May
Apr 182
May
Feb! 78
May
Mar,114
Jan
Mar 195
May
May1 1% May
Feb 123
Mar
May; 42% May
May'126% May
May 25h jail
May 39% May
Mar 27% Apr
May 124
May
May 268
May
Apr 114h Apr
Jan 3
May
Feb 743
Feb 902
Mar 753
Jan 599
Jan 980
May
May
May
May
May
•No par value. a-SO:111101gs.
New York City Realty and Surety Companies.
(A11 prices dollars per share.)
. Bid
Alliance R'ity' 75
Amer Surety_ $38
Bond & M 0.1 483
Lawyers Mtge, 375
Lawyers Title!
Guarantee 400
Ask
80 Mtge Bond...I
345 N I Title &
Mortgage__
493
385 U 8 Casualty..
410
Bid
195
Ask
205
695
425
705
3259
Bid Ask
Realty Assoc'
(13klyn)cora s326 1330
lot prat__
20 pref...._ 9414
Westchester
Title & Tr_ 626
Banks-N.Y Bid
290
America
Amer Union. 365
Bronx Bank'.. 800
Bryant Park._ 225
Central
248
225
Century
735
Chase
Rights _ - 60
Chatt Phenix
Nat Bk & Tr 745
Chelsea Exch. 365
Chemical _ _ _ _ y1010
98
Rights
Colonial._ _ _ _ 1250
Commerce _ 692
Continental•_ 650
Corn Etch__ 700
Cosmopolit'n• 460
Fifth Avenue_ 2.!50
4300
First
Garfield
750
350
Grace
Hanover
1450
Ask
296
375
850
_
253
___
745
63
755
375
1050
103
.
700
700
715
__
2500
4450
795
1500
*State banks.
I New stock.
Ex-dividend
o Ex-stock div
idend
y Ex-rights.
dollars per share.)
Banks-N.Y. Rid
Ask
Trust Cos. Bid
Harriman.
1080 1130
New York.
Manhattan•__ 825 835 Am Ex Iry Tr 665
National City 940 950 Bank of N Y
1 Rights --- 104 109
& Trust Co 815
910 925 Bankers Trust 1300
Park
Penn Rich..., 228 238 Bronx Co Tr_ 400
Tort Morris__ 675 750 Central Union 1680
1015 1035 County
Public
750
890 910 Empire
,Seaboard
530
Seventh
300 310 Equitable Tr_ 645
1100 120 Farm L & Tr_ 900
1State•
___ Fidelity Trust 520
350
Trade•
;United Cap
Fulton
565
1 Not Bk &Tr 520 535 Guaranty Tr_ .715
1Yorktown•___ 220
Rights_ _
137
Interstate_..... 325
Brooklyn.
225
;Dewey •
_ Lawyers Trust
545 565 Manufacturers 1200
;First
',Globe Exch... 300
Newstock
Mechanics.. _ 543 553 I $25 par- 300
Municipal* _- 610 620 Murray Hill_ 475
500 520 Mutual(WestNassau
950
__ , chester)____ 310
PeoPle.0
Y Trust__ 905
Times Square_ 255
Title Go & Tr 900
I u 8 mtg & Tr' 610
; United States3200
Westchest'r Tr.1000
Brooklyn.
[Brooklyn_
_ 11340
.,.3000
i Kings
MIdwond_ _ _ _ 340
Ask
672
840
1315
1710
Lio
655
920
540
600
725
142
335
1220
305
490
_
925
262
920
640
3500
1100
,3300
1 360
Quotations for U. S. Treas. Ctfs. of Indebtedness, 8ce.
faturity.
Int.
Rate.
June 15 1928..... 334%
Dec. 15 1928_,... 3%%
..... ,, ,n',11
9..z C,
Bid.
992'q
9919,
001,..I
Asked.
Maturity.
fru.
Kato.
Bid.
99fiss Sept. 15 1930-32 354%
99"u Mar. 15 1930-32 834%
00,
0.. Tlpe in 1030-52 :144 01
Asked.
997,n, 99un
991in' 99"u
0011.. 0613...
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.Below we furnish a daily record of the transactions in Liberty
Loan bonds and Treasury certificates on the New York
Stock Exchange. The transactions in registered bonds are
given in a footnote at the end of the tabulation.
Daily Record of U. S.. Bond Prices. May 19 May 21 May 22 May 23 May 24 May 25
1001.”
High
First Liberty Loan
100.n
334% bonds of 1923-47__ Low_
100.3:
(First 33-4)
lCloee
38
Total sales in $1,000 units _ _ _
Converted 4% bonds ofrigh
---Low_
1932-47 (First 4s)
Close
Total sales in $1,000 units....
1011,12
Converted 43.4% bonder igh
1012.0
1932-47 (First 434s) LOW.
Close
101,,n
Total sales in $1,000 units....
39
Second converted 4 Si %Illigh
bonds of 1932-47 (First Low_
Second 4 q s)
Close
Total sales in $1,000 units...
Third Liberty Loan
High100ru
Low_
4 Si % bonds of 1928
1001u
(Third 43-4o)
Close
1001”
Total sales In $1.000 units...
84
Fourth Liberty Loan
High IIOLI 102.rs
102'n
434% bonds of 1933-38.. Low_
(Fourth 4 I4 s)
Close DAY. 1023,2
Total sales in $1,000 units_ _ _
173
Treasury
[High
114,31
4345, 1947-52
Low_
113..4
Close
1132,s
Total sales in $1,000 units__
208
(High
109.ss
4s, 1944-1954
Low_
108..,
Close
109,n
Total sales In $1,000 units_ _ _
345
106ors
(High
% 1946-1956
3s,
Low_
1064s
106',,
Close
Total sales in $1,000 units...
201
101ws
(High
8%s, 1943-1947
101ns
Low_
1012.,
Close
'Mtn! •nlo• do. 80 NIn •1.,f•
11
100.ss 100,03, 100,ir 100r*sr
1001n 100'n 100'n 100'n
100.ss 100‘.rs 100.12 1009rs
41
233
10
92
---------- ---
10101',,
101
102'31 101u
101,isr 101,..1 101,82, 101",
,
10",of
101"n 101,,,n 101,
.., 101,,n
8
28
7
5
100fq
100,n
100132
109
102,rs
102
102,rs
224
114'n
114,41
114.ts
III
1091ss
108,.12
109
157
106ors
106,n
106,n
280
101uss
101",,
1012f,,
inn
100tq
100
1000ss
90
102,,,
102,3,
102
180
114',,
113"n
114r.
100.0
100,n
1003.1
77
102Tu
102.3s
102.n
160
-_ __
-- - ____
100ru
100'n
100Prs
101
102,zr
102'sr
102'n
101
114,n
103.1
114,11
1095q
108"n
109.n
--- -- - -
-- -•
-- -•
106,ss
106
106.4/
11
10119." 102
101".,102
101ress 102
IS2
---•
_
_
---.
5
Note.-The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
1 1st 4%s
11 3d 434s
to 100
100
99,°,, to 100
1 7 4th 43.45
1
10110ss to 10211,1
Foreign Exchange.To-day's (Friday's) actual rates for sterling exchange were 4.87 13-16®
4.88 for checks and 4.88 9-3244.88% for cables. Commercial on banks,
sight, 4.87% ® 4.87 38; sixty days, 4.84y,04.84%; ninety days, 4.82340
4.82%; and documents for payment, 4.833444.84%; cotton for payment,
4.8734, and grain for payment, 4.8734.
To-day's (Friday's) actual rates for Paris bankers'francs were 3.93 7-16 ®
3.93% for short. Amsterdam bankers' guilders were 40.32440.36 for
short.
Exchange at Paris on London, 124.02 francs: week's range, 124.02 francs
high and 124.02 francs low.
The range for foreign exchange for the week follows:
Sterling. ExchangeChecks.
Cables.
High for the week
4.88%
Low for the week
25-32
4
3..8
4.88 3-16
93
7m
Paris Bankers' FrancsHigh for the week
3.93%
Low for the week
3.93 5-16
3.93 9-16
Amsterdam Bankers' GuildersHigh for the
40.3734
Low for the week
week36
40
0.'31%
40.35
Germany Bankers' MarksHigh for the week
23.94
23.95h'
Low for the week
'
,3.91
23.9234
The Curb Market.-The review of the Curb Market is
given this week on page 3249.
A complete record of Curb Market transactions for the
week will be found on page 3277.
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Seven Pages-Page One
For sales during the week of stocks not recorded here,see pieced ng page
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
May 19.
Monday,
May 21.
Tuesday,
May 22.
Wednesday, Thursday,
May 23.
May 24.
Friday,
May 25.
3 per share $ per share $ per share
per share $ per share $ per share
19112 1924 19018 19114 19018 19312 19114 193% 19114 19378
10612 10612 106 106
108 10618 10614 1064 10658 10658
18112 182
186 186
182 18212 *180 182
182 182
114 11458 11312 11434 11418 114% 1144 114% 11412 11434
*8214 83
8214 8214 82 82
82 82
8134 8134
7112 7114 7212 *7112 73% *7112 7312
7234 75
71
*11234 116 *112 116 *111 114
111 111 *11112 114
6734 7078 6412 66
6518 6618 6412 8558 64
6478
*9212 94
*9112 92
9112 92 *90
91% 9178 92
36
4114 36
3934 394 414 3614 40
3818 38%
52
*52
52
54
*52
54 *52
*52
54
54
21012 21312 209 21134 20912 212% 213 21414 21312 218
*330 351 *330 350
350 *340 350 *340 350
198 203
19518 19712 19.
578 19934 198 198% 19578 19712
1038 11% 1018 1034 104 1034 11
11
11
11
1558 1612 1538 1558 1578 18
16
1618 1534 164
*45
4512 4512 *4514 47 *45
47
*4512 47
46
*70
73
*139
72
69
68
69
72
70% *68
12% 13% 12% 1278 1212 1234 1212 1278 1212 1234
2718 28
2634 2712 27
2612 27
27% 2634 2714
3414 3578 33
3334 3334 34% 3434 35% 35
35%
45% 4812 44% 45% 45
484 46%
4634 41312 47
8714 8812 8812 8712 8712 8912 8814 89% 8712 8914
146 146 *145 147 *145 147 147 147% *145 147
11534 11634 11418 11512 11414 119
11734 11834
11734 119
*11012 111
14
112
11012 11034 *11014 111
14
1 10
11012 110% 40
104 104
104 104 '4'104 10412 10412 104%
*120 123
120 120
-I*
- 12078
*81
84
84 84
82 82
84
*76
79
79
79
*7812 79
*7612 79 *7612 79
75
7314 74
7512 7812 78% 80
74
4 7
20914 21912 204 21034 207 213 211 214 210 21112
142% 14334 14114 14218 14114 14214 14118 142
14034 14114
6214 6214 62 62
*6234 6338
64
62
63 *62
*4
412 *4
418 418
44 418
412
44 44
*7
8
*7
734 *7
8
*7
8
7% 57
5512 5614 5512 5812 57
5812 58
5734 57
712
55
56
5612 5614 5634 56
5612
55
5612 57
*5312 5812 *5212 58
5612
5612 *53
*5314 5612 *53
10312 104% 10134 10234 10134 10334 1034 104
103 10312
10114 10114 9812 9812 997 10034 101 10178 10014 10014
22
22
22% 2158 22
2278
2234 22
2114 22
5434 5434
55
5734 5734 55
55
5514 54
58
10512 106
*10512 107
10312 10412 104% 104% *104 10512
6178 6318 6012 8112 Ms 61% 6138 8378 60 6334
9212 9212 9012 9012 *9014 9612 *90 91
*90
91
142 14234 14012 14278 14014 14178 14134 14312 144 145
Stock
*135 147 *135 145 *136 145 *135 145 •135 145
hange *444 4412 *4414 4412 4414 4414 44% 4412 4412 4412
77
77
*80 8012 7934 7934 •77% 8012 8012 8012
Closed.
50
5312 3912 47
4178 3712 40%
4034 4178 40
57
5734 5538 57
561
5614 5814 5612 57
7
Extra
•73% 764 *7312 7618 *7312 7518 75
7334 734
75
104% 107
10312 10512 10434 10814 10718 108
10714 108
Holiday. *15014 154
153 15312 *15014 15412 153 153
15214 1524
92 9312 9238 9218 9112 9112 *82
91
*85
91
4712 5134 4734 4912 47
54% 67
48% 4618 48
612 612
*612 714 *612 7
7
7
7
7
*20
*20
28
28
*20
*20
28 •20
28
28
50
50
4812 4812 4814 4814 48
49
4812 *48
*1212 18
*1212 18
812 812 *1012 18
*10
18
44
*44% 48
4412 *43
44
45
43% 43%
44
8518 8518 *85 88 *85
88
*83
85
85
85
68
68 *68
68
68
70 *68
69
*68
89
37
3712 3634 3718 353* 3678 3518 35% 35
3512
105 105% 1047 105
104% 10518
10434 10478 10478 105
601 63
614 6278 593 62
62% 6378 6312 6414
11712 11912 11534 11734 11678 11812 11734 11938 11758 119
37
4
334 37
3% 4
334 34
334 334
179% 183 178 18078 17912 18318 182 1834 180 18334
13314 13514 13412 13714 13734 13734 13514 13734
138 139
*10712 109 *108% 10834 10812 10812 10834 109 *109 109%
295 295 28012 28012 28934 30912 298 31412 289 290
6114 6214 81% 62
6114 6218 6012 6134 6034 62
116 11612 *116 111334
11578 116
11618 11658 116 116
33% 34%
33% 3718 3334 3412 3412 3512 3414 35
73
858
738 574 8% *74 8%
*912 1012 *7
43
43 •40
45
43
*39
45
*38
*38
45
18738 18934 18712 18712
18812 19014 18512 18784 18512 187
87
*86
89
*86
88
88
89
*88
10012
80
812 18
9934 100% 10
08
1114
99
99 100
100 102
97% 9812 9754 98
98
9938 9718 9778 97111 98
3014 3478
2112 2112 2134 31
22
22
2212 *20
65% 65% 6578 8638 65% 66%
6618 8634 65% 68
35 *30
*30
35
35
35 *30
35 *30
*30
139 14012 •138 140 1394 140
138 139
140 144
*99
9912 *99
9912
99
9934 9934 9912 9912 99
*9712 9912 *9712 9912
*9612 9812 9612 9612 *9612 98
153 15812 15018 15214 15178 15372 155% 155% 153 15434
11112 112% 11014 111%
111 11334 109 11012 10834 112
434 4314 *4214 4334 *4314 434
44
4378 4373 44
5312 *5114 52
*5114
514
8
513
53
53
5334
53
7112 *8712 7212
6814 6814 *67
70
71
71 I *66
117 11778 116 11634 11614 11773 11814 12014 11912 119%
10034 10034 10014 10014 *100 10034 10018 1004 *10018 10078
86
864 84% 8538
8486
8618 8678 8418 86
9112
93
9112 *9112 93 *91
93
*91
93 *91
1818 18% 18%
1818
171
4
17%
1878 1878 1734 18
*24
25
25
*24
25
2512 243* 2438 *24
*24
125 12512 12312 12412 12334 126% 125% 12634 312514 126
16014 162
15818 160% 15872 159% 161 16134 15912 161%
10138 10134 10114 101% 100% 108% 10014 10014
101 101
13634 13634
136 137
13434 13434 1303i 133 13212 136
3534 3678 3412 3712
37
4034 41
*30
37
37
47 49
4834 4634 4812 4812 4934 4934
*49
493
*10218 104 *10218 104 *1024 104 *1024 104 *10218 104
198% 200
197 19812 19678 202% 201 202% 20114 20278
85% 854 88% 8512 85%
8512 8512 854 8518 85
91
89% 91% 9112 9212 90
91
9312 8812 91
101 101
101 10114 101 101
•101 102
10014 101
9812 9812 9812 9834
98
*96
99 *96
*97 100
5014 4834 4958
4912 5218 4658 4918 464 49% 49
*4712 53
47
47
50
*4912 53
4714 4714 *48
•Bid and asked
pilaw
s 131-alvIdand
a let-dIv .11. ex-delta
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
Railroads.
Par
Shares
14.000 Atob Topeka & Santa Fe--100
100
900 Preferred
100
1,200 Atlantic Coast Line RII
100
13,600 Baltimore & Ohio
100
600 Preferred
50
2,800 Bangor & Aroostook
100
50 Preferred
20.800 Bkin-Manh Trite v t e-No par
No par
800 Preferred v t a
46,100 Brunswick Term di Ry Beo_100
100
10 Buffalo & Susq pref
100
25,600 Canadian Pacific
Central RR of New Jersey_106
100
11,100 Chesapeake & Ohio
100
6,600 Chicago & Alton
100
6.100 Preferred
100
500 Chic dt East Mlnols 31R
100
1,100 Preferred
100
3,900 Chicago Great Weetern
100
3,500 Preferred
46,500 Chicago Mllw St Paul &Pada°
16,500 Preferred new
12,400 Chicago & North Western_100
100
400 Preferred
7.900 Chicago Rook lel& Paolflo_100
100
preferred
600
100
800 64 preferred
100
100 Colorado & Southern
100
250 First preferred
100
30 Second preferred
17,400 Consol RR of Cuba pref
100
100
22,500 Delaware dc Hudson
4,000 Delaware Lack & Weetern.. 50
1,100 Deny & Rio Or West pref 100
300 Duluth So Shore & AU__ 100
100 Preferred
100
100
31,900 Erie
100
6,700 First preferred
100
Second preferred
23,300 Great Northern preferred 100
4,500 Prof certificates
100
6,200 Iron Ore Properties_ _NO par
1,600 Gulf Mobile & Northern.,.100
1,000 Preferred
100
11,300 Hudson & Manhattan
100
300 Preferred
100
14,700 Illinois Central
100
Preferred
100
300 Int Rye of Cent America...100
300 Preferred
100
33,900 Interboro Rapid'Fran v t o_100
8,700 Kansas City Southern
100
300 Preferred
100
14,400 Lehigh Valley
ao
4,100 Louisville & Nashville
100
240 Manhattan Elevated guar_100
15,900 Modified guaranty
100
800 Market Street Rallway
100
Preferred
100
900 Prior preferred
100
200 Second preferred
100
500 Minn St Paul & 8 S Marle-100
400 Preferred
100
80 Leased lines
100
16,100 Mo-Kan-Texas RR____No par
4,800 Preferred
100
56,800 Missouri Paella
100
19,000 Preferred
100
3,600 Nat Rye of Muloo 26 pre1-100
56,300 New York Central
100
1,810 N Y Chic & St Louis Co.--100
200 Preferred
100
410 N Y & Harlem
ao
20,500NYNH& Hartford
100
1,700 Preferred
14,400 N Y Ontario & Western-100
100 N Y Railways pref otfs_No par
200 Norfolk Southern
100
5,400 Norfolk & Western
100
200 Preferred
100
14,600 Northern Paola*
100
2,700 Certificates
100
6,300 Pacific Coast
100
36.200 Pennsylvania
so
Peoria & Eastern
100
2,900 Pere Marquette
100
800 Prior preferred
100
100 Preferred
100
7,600 Pittsburgh & West Vs
100
13,800 Reading
so
300 First preferred
50
500 Second preferred
ao
200 Rutland RR pref
100
9,100 St Louis-San Francisco__ _100
300 Preferred A
100
6,300 St Louis Southwestern.. 100
100 Preferred
100
1,700 Seaboard Air Line
100
100 Preferred
100
11,800 Southern Pacific Co
100
9,900 Southern Railway
100
800 Preferred
100
5,400 Texas & Pacific
100
3,600 Third Avenue
100
1.800 Twin City Rapid Tranedt 100
Preferred
100
15,800 Union Pacifier
100
1,200 Preferred
100
27,900 Wabash
100
100
3,000 Preferred A
300 Preferred B
100
100
23,100 Western Maryland
100
300 Second preferred
PER SHARE
Range Since Jas. 1.
On basis of 100-share lots
Lowest
Highest
PER SHARE
Range for Prelims
Year 1927.
Lowest
Highest
$ per share
$ per share $ per share $ per shard
18238 Mar 2 19718 Apr 27 16134 Jan 200 Aug
10212 Jan 5 10812 Apr 9
9938 Jan 10634 Dec
167 Mar 2 19112May 7 17478 Apr 20512 Aug
109 Feb 7 11978 Apr 12 10613 Jan 125 Oct
80 Feb 10 85 Apr 4
7314 Jan 83 June
44 Jan 1031i May
69 Jan 5 8414 Jan 11
11014 Feb20 115 Jan 10 10112 Jan 122 June
5332 Jan 17 7734May 3
53 Aug 7078 Jan
82 Jan 4 9538May 3
781s Oct 88 Jan
1412 Jan 5 44 May 18
74 Oct 1938 Dee
4812May 2 5834 Apr28
40 Apr 58 June
188 Feb 7 22334May 8
2978g Feb 17 375 May 7 2-85- -Jan 848 June
185% Feb20 20514 Jan 6 15154 Jan 21812 Oct
538 Jan 30 1834May 2
4114 Jan 1038 June
77 Feb20 2638May 2
718 Jan 1853 July
37 Feb 28 4814May 10
3012 Jan 51 July
621s Feb 24 7638May 4
68 Jan 8478 Oct
81, Jan 2212 May
918 Feb 8 1638May 2
2012 Feb20 32's May 2
4478 June
2214 Mar 5 4012 Apr 26 -1- -ja-n- 1934 Dee
37 Mar 2 5138 Apr 26
3
7% Dec
7914 Feb20 9414May 1 ii3 -lJan 97% gent
140 Feb 15 150 May 2 12414 Jan 150 Oct
106 Feb 18 12238May 10
68% Jan 116 July
10614 Feb 9 111 Apr 27 10234 Jan 11134 Dec
100 Feb 24 1047sMay 24
9514 Jan 104 Nov
84 Jan 13734 July
106 Feb 21 126 May 3
70 Jan 78 Dec
75 Jan 14 85 Apr 10
68 Jan 75 Oct
7218 Jan 3 85 May 9
69 Apr 12 80 May 25
65 Aug 77 May
18314 Feb 10 228 Apr 28 17118 Jan 230 June
129 Feb20 150 Apr 9 130% Oct 173 Mar
411, Jan °Mintier
5012 Feb20 6534 Apr 28
314 Apr 16
634 Jan 5
258 Apr
77a Dee
4 Mar 1114 Des
912May 2
5 Feb20
3912 Jan 6944 Seat
49% Feb 7 6612 Jan 4
5234 Jan 6614 Aug
54 Feb20 6378 Jan 7
49 Jan 6412 Aug
5212 Feb 17 62 Jan 6
79% Jan 10378 Sept
9312 Feb 6 109 May 14
85% Mar 101 Sept
911s Feb 7 10534May 15
18- July 288g Sept
21% Apr 13 25 Jan 24
WE Jan 7638 July
4514 Feb 7 6178May 10
10312Mar 29 109 May 1 105 Jan 11214 Apt
40% Jan 654 Ms?
51 Jan 3 7312 Apr 24
78 Jan 904 MI
83 Jan 16 934 Apr 26
1315g Jan 11 14834May 91 121% Jan 13948 00
130% Jan 13 147 May 15 12072 Jan 140 Oct
28 Apr 4212 Oct
3612Mar 16 4718May 2
6978 Jan 3 82 May 2 62 Apr 7414 Oct
29 Jan 5 62 May 3 80% Aug 52% Feb
4114 Jan 7012 July
4914 Feb 7 631& Jan 7
6478 Jan 7312 Dec
70 Feb 8 77 Apr 20
8812 Oct 137% June
84% Feb 20 118 Apr 26
145% Mar 9 15912May 10 1285 Jan 15918 Oct
7814 Dec 90 Feb
75 Jan 9 96 May 4
414 Dee 5478 Feb
40 Jan 10 64 May 3
712May 15
438 Nov
672 June
418 Apr 3
18 Feb 2518 June
21 Aprn 17 2912May 3
4138 Feb 5934 Aug
45 Mar 27 5434May 4
1112 Oct 1712 June
814May 24 1618May 4
27 Jan 5612 Dec
42 Feb 8 52% Jan 6
50 Apr 8812 Dec
75 Feb 7 874May 16
5814 Mar 71 Nov
67 Mar 20 71% Jan 9
3112 Jan 5612 June
33% Feb 8 4112 Jan 3
104 Apr 19 109 Feb 3 9534 Jan 1092, Dec
4178 Feb 7 6714May 11
3778 Jan 62 Apr
105 Feb20 I2338May 11
90ts Jan 11838 Nov
2 Feb 17
511 Apr 26
118 Aug
814 Oct
158 Feb 16 19112May 10 18714 Jan 17112 004
128 Jan 10 146 May 11 8110 June 24012May
108 Feb 23 110 Jan 4 102 Mar 110 Dee
168 Jan 3 505 Apr 26 167 Deo 188 Ape
5938 Jan 16 684May 2
414e Jam 6814 Dee
11314 Feb 29 117 May 3 110% Oct 11438 Nov
24 Feb20 39 May 2
2314 Jan Ill% Sept
438 Dec 1644 Jan
514 Jan 24 13 May 3
40 May 16 49% Jan 11
3718 Jan 6413 Jung
177% Mar 2 197 May 9 156 Jan 202 Nov
7912 Apr 26 89 Apr 28
83 June 90 July
9238 Feb 7 10512May 15
78 Jan 102% Dee
90% Feb20 10134May 16
84 July 997e Dee
1912May 14 3478May 25
1514 Feb 3134 Dee
63 Feb 9 723 Apr 27
6654 Jan 68 Oel
25 Mar 12 37 May 1
20 Jan 44634 July
12478 Feb 9 146 Apr 11 1141k Jan 140% May
99 Jan 18 10134 Mar 28
93 Jan 9914 Dee
9512Mar 6 10034Mar 30
8934 Jail 97% Dee
12114 Feb20 161 Apr 9 122% Jan 174 May
9414 Feb 7 11938May 10
94 Jan 12334 June
421g Mar 1 46 Apr 9
4012 Jan 4312 Dee
435g Jan 60 Feb
44 Jan 26 5978May 1
60 Feb 21 7214May 18
48 Jan 69 May
109 Feb 7 122 Mar 23 10034 Jan 11714 June
9912 Apr 5 102 Jan 4
96 Jan 104 July
6712 Feb 8 9138May 14
61 Jan 93 Jose
90 Apr 17 95 Jan 3
7672 Jan 9444 Dee
11% Mar 3 3012 Jan 8
28% Mar 4114 Feb
1912Mar 3 38 Jan 8
32% Apr 4532 WY
11738 Feb 7 13114May 9 10614 Jan 12678 Des
13912 Feb 8 165 May 7 119 Jan 149 Dee
98% Mar 14 10214 Jan 17
94 Mar 1011s Dee
9912 Jan 3 145 Apr 27
6378 Jan 10378 Nov
2812 Jan 10 4618May 3
2834 Aug 61 Feb
44 Mar 23 56 May 8
45 Nov 6614 Feb
10218 Apr 11 107 Feb 10
99 Apr 108 May
18612 Feb 6 20434May 9 18912 Jan 19734 Den
83 Mar 13 8714 Jan 20
77 Mar 8534 Dec
51 Feb 18 9614May 11
40% Jan 81 June
76 Jan 101 Jun.)
88% Feb 7 102 May 18
65 Jan 98 Juno
87 Feb 4 99/2May 18
1354 Jan 6772 Juno
3134 Feb 8 5434May 10
23 Jan 6712 Juno
3312 Feb 8 5478May 10
New York Stock Record-Continued-Page 2
3261
For sales during the week of stocks not recorded here, see second page preceding
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
May 19.
Monday, , Tuesday„ Wednesday, Thursday,
May 21. I May 22. I May 23. I May 24.
per share $ Per share ,5 per share! $ per share
1
4' 30
3414 3414 3312 33/
33
5912 59% *59
591
5912 5912
Friday,
May 25.
carol
for
the
Week.
PER SHARE
Range Since Ian. 1.
On basis of 100-share iota
STOCKS
NEW YORK STOCK
EXCHANGE
Lowest
per share $ per share Shares
32/
1
4 3418 3378 338 2,000 Western Pacifier new
5918 60/
1
4 *59
700 Preferred new
5938
100
100
Highest
$ per share
$ per share
2814 Feb 7 3712 Jan 13
571
/
4 Feb 9 6218 Jan
PER SHARI
Range for Preston
Year 1927
Lowest
Higbee'
5 Per
share $ Per share
2518 Apr 6712 June
55
Apr 763s Feb
Industrial & Miscellaneous.
75
1
4 7534 7312 75
7614 73/
10314 104
105 105
103 103
•111 1144 *111 1114 *111 11114
*320 325
320 33212
315 319
98% •98
*98
98/
1
4 *98
988
33
3534 36
3338 358
353
5478 *50
54
54
5434 5434
4/
1
4 5
438 434
412 47
68/
1
4 70
66/
1
4 6838 66
68
918 9/
1
4
938 934
87
918
4
4
334 4
*334 37
2834 29
2818 283
2812 29
7334 7478 73
7432 11,400 Abitibi Pow&Paper new No par
103/
1
4 104 •10234 103
1,300 Abraham & Straus
No par
1114 11214 *111 1111
20 Preferred
/
4
100
338 34912 343 343
2,600 Adams Express
100
*98
988 *98
Preferred
98/
1
4
100
3412 36
35
3578 9,200 Advance Rumely
100
54
.54
100
54
*50
500 Advance Rumely pref
412 434
412 434 9,400 Ahumada Lead
1
6814 6878 68/
1
4 6912 11,900 Air Reduction. Inc newNo Par
No par
9/
1
4 912
9
934 22,900 Max Rubber, Inc
3/
1
4 3% 2,700 Alaska Juneau Gold Mln__ 10
334 4
2834 29,4 29
5.800 Albany Pert Wrap Pao_No par
29
Preferred
100
165 16712 16014 16278 161 164
163/
1
4 16538 16232 164
33,700 Allied Chemical & Dye_No par
123/
1
4 12318 123 123/
1
4 *122 123
12218 12218 •12212 12312 1,500 Allied Chemical& Dye pref _100
124 1264 122/
1
4 123
122/
1
4 124
12334 12434 124 12434 2,600 Allis-Chalmers Mfg
100
1334 1378 13/
1
4 1438 14
1414 1312 1378 14
1414 5,400 Amalgamated Leather_No par
*81
8214 8214 *82
82
*80
83
86
84
86
400 Preferred
35
3578 34/
1
4 3518 3412 36
3438 35
34/
1
4 35
12,300 Amerada Corp
No par
2012 21/
1
4 1914 197
1938 2014 2012 22
211
/
4 2314 24,500 Amer Agricultural Chem .100
68/
1
4 707
69
6938 69
70
7038 73/
75
19,500 Preferred
1
4 74
100
126 128
12612
119 125
120
12814 130
12814 13212 6,300 Amer Bank Note
10
6112 6112 *62
63
62
62
6278 63
*62
63
60 Preferred
50
17
17
17
1812 1712 1712 1712 18
1734 18
2,100 American Beet Sugar-No par
49/
1
4 52
53
53
52
53
53
53
5212 53
2,100 Preferre1
100
2912 3234 31
35
3434 3612 3614 38
3814 4012 106,300 Amer Bosch Magneto_ _No par
4334 4413 4318 4334 43,8 4312 43/
1
4 4334 4314 43/
1
4 4,600 Am Brake Shoe & F newNo Par
*12514 128 *12514 128 *12514 128 *125 128 *125 128
Preferred
100
2212 2614 22/
1
4 25
23/
2478 20
1
4 2412 23
23/
1
4 80,800 Amer Br wn Boveri El_No par
62
65% 6218 64
6412 657 *62
65
6214 63/
1
4 1,090 Preferred
100
87
8834 8814 9134 90/
1
4 9214 90/
1
4 92/
25
1
4 182,800 American Can
*14511
88 149051122 145 14514 *145 14512 *145 14512 145 145
100
500 Preferred
10334 105
10314 10312 103 10312 103/
1
4 10312 10314 104
1,800 American Car & Fdy---No par
*136 137 *136 137 *136 137 •136 137 •136 137
Preferrea _
100
102 10214 102 102 *102 105
103 103 •103 105
400 American Chain pref
100
8412 86
8312 8312 8314 84
*8312 8512 85
No Par
86
4,100 American Chicle
Stock
113 114
111 111 *111
*111
•111
No pa
140 Prior preferred
1234 13
1253 1314 12/
1
4 12/
1
4 1278 131
1278 13
15,700 Amer Druggists Syndisate_ 10
Exchange
6878 6912 68
68
68
68
*66
67
68
68
1,200 Amer Encaustic TIling-No Pa
186 18612 182 18312 181 18514 1Y5 138
188 18934 4,300 American Express
100
Closed.
*334 34
33/
1
4 3478 34
3514 35
36
341
/
4 35/
1
4 32.500 Amer & Forn Power_ -No Pa
1091
/
4 10938 10918 10918 10912 109/
1
4 10914 110
10918 1091
No pa
/
4 1,400 Preferred
Extra
92
92
92 • 92
92/
1
4 93
93
93
9212 9212 4,000 2d preferred
No pa
•1212 1234 1212 1212 *1214 1212 *1114 111
1238 1238
300 American Hide & Leather_100
Holiday. *5212 5312 52/
1
4 5212 *51
5213 •52
521 *52
100
5212
300 Preferred
6778 70
71
73
73
77
77
801
7718 7834 60,400 Amer Home Producte_No pa
3712 38/
1
4 37
3734 3718 38
38
391
3834 3934 14,600 American Ice New
No pa
*9712 9914 9712 9712 97
97
97
97
*97
100
9914
600 Preferred
11034 11534 10618 10914 105 11412 11012 1147 110/
1
4 11414 63.000 Amer Internal Corp___No pa
6/
1
4 7
6/
1
4 634
634 7
7
718 6,100 Amer La France & Foamite 10
7
7,4
*6814 70
*6814 70
•68
70
*6814 70
*6814 70
Preferred
100
101 10472 9714 10032 9712 10418 10218 10414 102/
1
4 10638 64,300 American Linseed
100
*109
•109 110
109/
1
4 10918 10912 1091 •109 112
Preferred
100
300
10538 10614 10538 10538 10618 10712 106 1073 106 10618 3,000 American Locomottve-No pa
•12412 127
12412 124/
1
4 *115 125 •115 1243 *110 125
100
400 Preferred
158 15812 155 158
158 158
158 162
160 160
2,000 Amer Machine & ledy No pa
*115 116 *115 116 *115 116 *115 116 •115 116
10 Preferred ex-warrants
4532 47
45
46
4514 4612 461
/
4 47
47
4814 14,600 Amer Metal Co Ltd-NO Par
115 115
115 11512 •11412 115 •11412 115 *11412 115
400 Preferred (6)
100
18
1718 1718 *17
18
18
17
17
1678 16/
1
4
700 American Plano
No par
67/
1
4 6712 *6312 68
6018 63/
1
4 6014 62
*6012 63
320 Preferred
100
MN 8712 8334 8512 8314 8534 8614 881
8534 87
33,900 Am Power & LIght____No par
139 14134 138/
1
4 139
138 140
140,
4 1411 142/
1
4 143
8.700 American Radiator
25
122 122
121 122 *125 12938 127 127 •123 125
900 Amer Railway Express_ _ _100
7478 77/
1
4 7314 7534 75
771
7578 77/
1
4 7518 7634 12,100 American Republice_No par
62
6218 62
63
6414 66
6534 66/
1
4 6612 6714 25,500 American Batty RAsor_No par
4014 41
40
4038 40
40
4014 401
: 40/
1
4 41
3,500 Am Seating v t a
No par
5
5
472 514
5
5,4
5,4 5,4
514 5/
1
4 4,800 Amer Ship & Comm...No par
103 103
100 10114 100 1021 102 102
100 100
370 American 8hipbuildIng_-_100
19138 19334 188/
1
4 191
188 191
19114 19211 19112 19538 84,600 Amer Smelting & Refining.100
13834 13834 13834 138/
1
4 138 138 •137 138 *137 138
900 Preferred
100
*165 167
165 165
16514 1651 •166 168 *166 170
200 American Snuff
100
*116
*116
*116 -- *116
116 116
10 Preferred
100
60
62
613
60/
1
4 611
/
4 60
6134 63
6212
6112
11,300 Amer Steel Foundiles_No par
11212 113
112 11234 112 112
11238 113
11232 11234
540 Preferred
100
7214 7234 7038 7112 7112 73
7312 7534 7314 7472 24.800 Amer Sugar Refining
100
109/
1
4 10978 *10812 110
110 110
10914 110 •10914 110/
1
4 1,000 Preferred
100
54
541
5434 5312 5338 84
5414 54% .54
55/
1
4 2,800 Am Sum Tob v t o
No par
2734 2734 27
•27
2714 •2634 28
28
2773 27%
400 Amer Telegraph & Cable__100
202 20414 200 20134 200 203 202 203/
1
4 20114 202/
1
4 26,200 Amer Telep & Teleg
100
157 15734 15514 157
15512 1561 15712 15818 159 160
4,900 American Tobacco com
50
155/
1
4 15734 15514 15612 15514 157
157/
1
4 15912 159/
1
4 18134 11,000 Common Class B
50
•121 124
121 121
12014 12014 *120 122 •120 122
300 Preferred
100
11812 1181 *118 119 *118/
1
4 119
118/
1
4 118/
1
4 11812 1181
500 American Type Founders _100
•111 1121 *111 11212 *111 11212'111 1121
/
4 111 111
10 Preferred
100
62
6262 6034 62
6212 6212 6318 13,100 Am Wtr Wke & El,
60,8 6234 62
newNo par
105 105
105 10518 10434 105/
1
4 *10314 105 •10314 105
800 let preferred
22
2112 22
221
2178 217
/
4 2112 22
22
2218 4,000 American Woolen
100
5278 53
52
52/
1
4 5214 5378 5312 5378 5312 5312 2,500 preferred
14I2 1434 •1414 1412 1412 1412 1412 1412 *131
/
4 1412
700 Am Writing Paper otfe_No l
par
•411
/
4 43
*4112 43
42. 42
*41
43
*41
43
300 preferred certificates_ _ _100
2712 311
/
4 2712 28/
1
4 2738 2878 28/
1
4 29/
1
4 28/
1
4 2134 29,900 Amer Zinc. Lead & Smelt
25
8618 9012 86
87
89
89
8834 89
89
90
4.700 Preferred
25
69
7112 6812 70
69
70/
1
4 7014 71,2 70/
1
4 73 223,500 Anaconda Copper Mining_50
7614 7834 73
72
7534 73/
76
1
4 8038 7514 79
8,300 Archer, Dan'Is. Micrd_No par
411312
•11312
_ •113/
1
4 114
114 114 •11312 114
10 Preferred
100
93/
1
4 -9i34 9214 1338 93
9312 93/
1
4 9312 9312 93/
1
4 5,300 Armour & Co (Del) pref
100
16
1678
1518 1614 15/
1
4 1578 15/
1
4 16/
1
4 16/
1
4 1634 30.300 Armour of Illinois Class A__25
1078 1134
1078 1112 1078 1114 1138 12
111
/
4 1214 92.800 Class B
28
8434 85
8418 85
84/
1
4 8412 841
/
4 8434 8412 8512 32,800 Preferred
100
4512 4614 45
4514 4412 4512 4512 4512 4434 4434 1,600 Arnold
Constable Corp_No par
33/
1
4 33/
1
4 32
32
3014 3314 3212 3212 32/
1
4 3278 1,800 Art Metal Construction _ _10
40
40
40
40
40
40
4012 4012 *40
4014
1,100 Artloom Corp
No par
*10858 110 *10712 110 *108 109 *10834 109 *10812 109
Preferred
100
441s 4434 4412 4414 4414 4584 4484 4512 4472 4534 9,600 Assoc
Dry Goods
No par
•110 112
110 110 *107 110 *107 110 •107 110
100
lat
preferred
100
•115 119
115 115 •110 117 *112 115 •112 115
200 26 preferred
100
44
44
4312 431y *4312 4372 4312 4312 43/
1
4 4312
50 Associated 011
25
56
59/
1
4 5414 5832 5714 5938 5818 5912 57
5818 21,000 At, CI & WI 88 LIne_No par
5218 5378 5112 521g 52/
1
4 5212 5318 5334 52/
1
4 5314 5,100 Preferred
100
12412 12732 12414 12678 1261
2125 133
/
4 128
1271
/
4 12912 27,700 Atlantic Refining
100
*11712 118 *117/
1
4 118 *11712 118
118 118 *11712 118
100 Preferred
100
81
8114 82
80
81
81
*81
85
*80
83
1,300 Atlas Powder
No
par
110 110 •109 10912 10912 110
109 109
10812 10812
280 Preferred
100
1311 1312 1313 1312 *13/
1
4 14
14
14
1312 16
2,900 Atlas Tack
No par
8
8
812
812
714 8/
1
4
8
812
8
8/
1
4 4,500 Austin. Nichols&Co vteNo par
34
*34
36
34
*34
35
*34
35
34/
1
4 341
/
4
200 Preferred
100
681
: 68
68
68
6832 68
68
68
•88
6812
700 Austrian Credit Anstalt
1312 1378
1312 1372
1314 1334 14
1
4 1738 19,400 Autoaales Corp
1612 15/
No
par
34
33
35/
1
4 *3012 3212 34
3478 35
35,2 3734 3,000 Preferred
50
4938 4832 4872 4818 484 4818 4818 4814 4814 2,000 Autoetr Saf Reser A
49
-No
Par
250 25712 .249 260 •249 257 •250 260
25212 25212 1,700 Baldwin L000motive Wks.100
•122 125 *121 124 *121 123 *121 123
123 123
100 Preferred
100
109 109 *109 11012 109 11014
*108 11012 •108 109
100 Bamberger(E)& Co prof _100
30
2814 2814 •29
31
31
3112 29
29
29
2,200 Barnett Leather
No Par
2438 23/
1
4 24
23/
1
4 24
24/
1
4 24
24
2334 24
18,200 Hamadan Corp class A
28
2412 .23
231
: 2312 •23
*2312 25
2412 .23
2412
100 Class B
25
•Bid and asked pricey no Wee on this day. s Es-dividend. a Ex-right&
72 Feb 20
95 Feb 21
11012Mar 8
195 Jan 4
93 Jan 16
1112 Feb 8
3414 Jan 17
234 Jan 17
601: Apr 10
8/
1
4May 23
1 Jan 5
23 Mar 15
9812 Jan 17
146 Feb 18
122 Mar 1
11518 Feb 18
1112 Jan
69 Mar
2718 Feb 20
15/
1
4 Feb 2
55/
1
4 Feb 20
7434 Jan 1
61 Feb 10
1478 Feb 16
36 Feb 1
1538 Feb 18
4134 Mar
124/
1
4 Jan
10/
1
4 Apr 27
401
/
4 Apr 27
70/
1
4 Jan 18
13614 Jan 10
103 Apr 24
13018 Feb 20
9914 Mar 7
69 Jan 12
107 Jan 5
11 Feb 18
53 Jan 4
169 Jan 10
2278 Feb 28
10514 Mar 16
81 Feb 24
1034 Jan 3
5034 Apr 23
59 Feb 18
28 Jan 10
90 Jan 7
71 Jan 6
514 Jan 12
56 Jan 10
1
4 Jan 13
56/
86/
1
4 Jan 13
10412 Apr 23
1241:May 22
15214 Feb 24
11112Mar 1
39 Mar 13
112 Apr 2
85 Apr 62
11112 Apr 13
113 Jan 10
378 Apr 67
0912Mu 28
4238 Apr 26
6434 Apr 28
534 mar 20
74/
1
4May 7
14/
1
4 Jan 24
478 Apr 27
3114 Jan 26
11134 Mar 14
17312May 16
12738May 4
12934 Apr 27
1634 Apr 19
90 Apr 19
3834 Mar 31
2314May 24
75 May 25
159 May 9
6578 Jan 3
1812May 22
53 May 22
4012May 25
491s Jar/ 27
127 Mar 20
2614May 21
65/
1
4May 21
9538May 14
147 Apr 30
11112 Jan 3
13712 Mar $1
103 May 24
8914May 11
114 May 21
1512 Apr 10
75 Apr 25
197 Apr 28
3878May 1
110 May 24
96/
1
4 Apr 27
15/
1
4 Feb 1
6718 Feb 1
8018May 24
41 Apr 27
9912May 9
125 May 17
7/
1
4MaY 7
74 Mar 27
11134 Mar 14
110 May 15
115 Jan 31
134 Mar 24
180 Mar 26
116 Jan 13
4918May 3
11712May 14
1678May 2
5914 Apr 16
6214 Jan 1
1301
/
4 Jan 1
:Jan
1101
5114 Feb 7
56 Jan 10
3878 Feb 1
3/
1
4 Jan
100 Apr 1
169 Feb 27
1311
/
4 Jan
141 Jan
102 Jan
5378 Feb 18
112 Mar 27
55 Feb 1
100 Feb 17
4738 Feb 27
25 Mar 2
17612 Feb 20
15318 Apr 24
1541
/
4 Apr 24
117/
1
4 Mar 19
115/
1
4 Feb 10
10718 Jan 7
5212 Feb 27
10113 Jan 10
2018 Jan 3
25 Feb 7
90 Jan 3
95 May 14
152/
1
4 Mar 30
138/
1
4 Feb 21
85 Apr 12
6714May 25
45 May 14
6 May 7
119 Jan 6
20012May 14
142 Apr 20
174/
1
4 Apr 13
116 May 16
70/
1
4 Jan 11
120 Feb 29
7814 Jan 12
11014 Jan 28
8212 Jan 7
32 Jan 17
211 May 17
176 Jan 3
177 Jan 3
126 Apr 20
12634 Jan 2
115 Mar 31
7034May 4
106 Apr 13
1
4 Feb 14
24/
6214 Feb 14
1912 Feb 9
48/
1
4 Mar 1
1
4May 16
32/
98 Apr 11
7438May 15
97 May 9
11514 Mar 16
9412MaY 7
18 May 11
1312May 11
86 May 4
5134 Apr 2
34/
1
4 Apr 19
44/
1
4Mar 30
114 Mar 19
6834 Jan 23
11378 Apr 3
11912 Jan 27
4613May 2
5978May 21
56 Mar 12
13978May 1
11814 Jan 8
101 Mar 23
110 May 9
1678 Feb 3
914'May 14
39 Jan 21
75 May 9
1738May 25
37/
1
4May 25
5212May 1
285 Mar 31
12414 Apr 11
11178 Jan 6
5212 Feb 1
2678 Apr 30
2714 Apr 30
an 211
3
tra Mar
40 May 16
6/
1
4 Jan 10
40 Jan 18
54 Jan 18
5514 Feb 20
11234 Feb 20
863s Jan 3
111
/
4 Jan 16
8/
1
4 Jan 10
6718 Jan 12
41 Mar 14
2511 Jan 10
3912May 8
10914 Mar 6
4114 Mar 1
108 Feb 18
112 Jan 3
3712 Feb 18
371
/
4 Feb 18
38 Feb 27
9514 Feb 9
11513 Apr 18
63 Jan 3
10211 Jan 20
8/
1
4 Jan 5
438 Jan 3
26 Jan 5
66381%fay 23
612 Jan 18
SO Jan 26
43/
1
4 Jan 10
242 Feb 10
118 Feb 28
10812 Apr 25
2578 Apr 13
2114 Mar 30
22 Feb 14
Wit; Ws: nisi 1O;
109 Aug 11313 Feb
124 Jan 210 Nov
9434 Nov 9613 Dee
718 Oct 1534 Feb
1
4 Nov
22/
1
4 Oct 45/
214 June
818 Sept
,Ki;1 Yu; May
--iii
1 June
18 Apr
98 June
Jan
131
120 Mar
88 Jan
1118 Nov
68 Dec
2718 Apr
8/
1
4 Apr
28/
1
4 Apr
41
Jan
561
/
4 Jan
1518 Oct
35 Dec
13
Jan
214 Feb
32 Sept
102 Sept
16914 Sent
124 Aug
11834 Dee
2418 Feb
108 Feb
87/
1
4 Feb
2112 Dee
7234 Dec
98 Nov
65 Sent
23/
1
4 Max
601s Jan
2584 Oct
351: may 46 Jul/
11714 Feb 128 Mar
/
4 Jan
514 Aug 391
40 Aug 98 Feb
43/
1
4 Mar 77/
1
4 Dec
Jan 14134 Dec
126
Dee
95 July 111
12434 Oct13414 June
98/
1
4 Dec103 Sent
Jan 7414 Nov
36
Jan 110 Dec
90
938 Apr 1512 Nov
38/
1
4 Aug 574 Nov
127
Jan 183 Nov
1872 Feb 81 Dec
8812 Feb 10914 Dec
"lisZ "iii
I27i -45;:i
48 Mar 66/
1
4 July
3038 Jan 71 Nov
2554 Oct 32 Aug
Jan 9612 May
84
37 Mar 7238 Dee
10 Jan
4 June
1
4 Jan
6018 Dec 90/
1
4 Nov
20/
1
4 Apr 72/
4618 Mar 9212 Nov
9914 Oct 116 MIA7
11912 Feb 127 July
1 Dec
7314 Jan 188:
-36-1;Nov
lisi iii;
20/
1
4 Dec 11314 JUDO
84 Nov 11014 Max
54 Jan 7338 Oct
11012 Jan 1477s Sept
871s Apr 116/
1
4 Nov
85/
1
4 Jan 82/
1
4 Dee
42 July 6478 Nov
3878 Oct 51 July
213 Oct
6/4 Jan
80
Jan 12314 Nov
132/
1
4 Jan 18834 Dec
119/
1
4 Mar 133 Dee
11918 Jan 14634 Nov
94:
1 Jan 106:
1 Oct
4112 Apr 7234 Dee
Jan
11014 July 115
6514 Nov 9514 May
104 Nov1161
:May
1
4 Oct
4112 Jan 68/
26 Apr 3634 Aug
1
4 Oct
14914 Jan 185/
120 Jan 189 Nov
11914 Jan 186 Nov
1101s Jan 120 Dec
1197s Nov 146 Feb
10714 Feb 116 Sept
68 Aug 724 Sent
9978 Oct10312 Dee
/
1
4 Jan
1612 June 83
86/
1
4 Jan
46/
1
4 Jun
1
4 Oct
9/
1
4 May 24/
25/
1
4 Apr 5714 Aug
5/
1
4 Sept1014 Feb
Oct 5114 Feb
35
6012 Dee
411
/
4 Jun
38 Mar 63 Deo
: Dee
Jan 1131
106
Oct9614 Feb
79
15/
1
4 Jan
1
4 May
8/
91 JAI)
5 Dec
60 Apr 8614 Jan
21
Apr 5512 Nov
22
Jan 32 June
4034 Dec5434 Jan
1
4 Nov
10912 Nov114/
1
4 Nov
39/
1
4 Feb53/
9712 Mar 112 Dee
105 Mar 114 Dec
85
Oct 5014 Feb
3018 Mar 431: Nov
29/4 Mar 41/
1
4 Nov
104
Dec 131/
1
4 Aug
115/
1
4 Feb119 Aug
5813 Mar 70 JUDO
98
Jan 107 July
1
4 Ape
714 June 12/
4/
1
4 Mar 1014 Jan
2312 Dec 61
Jail
724 Dec 8034 Nov
4/
1
4 Mar 11 Dee
28 May 4214 Dee
1
4 Nov
43 Nov 46/
143/
1
4 Jan 26534 Sept
116
Jan 12512 July
106/
1
4 Mar 110/
1
4 Dee
40
Jan 5978 Feb
2014 Oct 3512 Feb
2013 Oct 32/
1
4 Feb
3262
New York Stock Record-Continued-Page 3
For sates during the week of stocks not recorded here, see third page preceding
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
kSaturday.
May 19.
Monday,
May 21. .
Tuesday, 'Wednesday, Thursday,
May 24.
May 22.
May 23.
Friday,
May 25.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
3 Per share $ per share $ Per share $ 7267 share $ per share $ per share Shares Indus. & Miami.(Con.) Par
No par
800 Bayuk Cigars. Ins
123 123 31120 123
124/
1
4 12434
124 126
124 124
100
130 First preferred
108 108 *10712 10812
*10714 10812 *10714 10812 108 108
28,100 Beacon 011
No par
16
1518 1534 1538 1678 1634 18
1878 1512 16
3,400 Beech Nut Packing
20
77
77
7634 7712 76
7634 *7634 78
76
76
1
4 1812 1,100 Belding Heneway Co_ _No par
1812 1812 1812 1838 1838 1812 •1814 1812 18/
300 Belgian Nat Rye part pref__-_
*9058 9138 '
19012 9112 *9014 9112 *9014 914 9018 9012
No par
6818 4,500 Best & Co
8738 6814 6613 8678 6634 6838 6734 6918 z68
100
6214 6312 68,400 Bethlehem Steel Corp
61
6234 60
6118 6014 6138 6112 63
1,900 Beth Steel Corp of (7%) _100
121 121
12112 12112 121 12112 *12118 12134 121 121
3714 1,100 Bloomingdale Bros____No par
35/
1
4 3534 3558 3534 3634 3634 37
36
36
100
20 Preferred
11012 11012 *11014 11012 *11014 11012 11012 10012 *11014 11012
20 Blumenthal & Co pref
100
*8914 95 *8914 95
8958 89%
*8914 95 *8914 95
6912 6912 6912 69
No par
7518 9,600 Bon AIM, class A
6812 6812 6978 71
68
No par
612 6/
1
4 10,900 Booth Fisheries
6/
1
4 718
634 7/
1
4
638 7/
1
4
7
714
let preferred
100
46
1140
48 *40
1140
46
3140 48
*39
46
50
16534 16712 3,100 Borden Co
16412 165 16512 166
185 165
162 165
Botany Cons Mills clam A-50
*1812 19
*1812 19 *1812 19 01812 19 *1812 19
1
4 3434 3318 3458 256,500 Briggs Manufacturing_No par
3214 3314 33/
1
4 33
3012 3214 30/
100
758 9/
1
4 27,400 British Empire Steel
418 5
634 74
6
6/
1
4
54 6/
1
4
100
9
934
914 1012 6,100 2d preferred
838 958
8
814
6/
1
4 778
Brooklyn
Edison.
Inc
100
15,000
249 25234 247 249 249/
1
4 252 25014 255 251 252
No par
17,000 Bklyn Union Gas
' 151 151
14914 15012 *148 150
147 147 149 149
No par
2,200 Brown Shoe Inc
4812 49
48/
1
4 49
49
4858 4938 49
s49
50
4538 4738 4358 45
4734 4938 51,000 Brunsw-Balke-Collan'r_No par
44
4634 4612 48
10
1
4 4412 4614 19,200 Bucyrus-Erie Co
4114 4234 43/
3938 4.24 394 411
1
4 44/
10
4938 5012 5034 5158 5058 5138 19,300 Preferred
1
4 493
5118 5214 47/
117/
1
4 118
11714 119
11812 119
118 11812 119 11934 2,200 Burns Bros new elAeomNo par
1
4 14,200 New class B com____No par
1
4 3512 36/
30% 3112 3312 3414 35/
30
304 29
100
500 Preferred
10412 10434 10458 10414 10413 105 10434 105
105 10634
400 Burroughs Add Mach_No par
158 158
*158 163
/
4 15714
158 158 *158 180 31571
1,100 Bush Tannin& new____No par
59
*5918 60
5914 59
5814 .59
60 60
59
100
350 Debenture
114 114
11318 115
11118 11158 *11112 112 112 112
I00
320 Bush Term Bldgs, pref
118 118
117 118
117 11834 *117 118
118 11814
5
938 71,300 Butte Copper .4 Zinc
634 712
8
7/
1
4 814
714 7/
1
4
718 7/
1
4
100
7,700 Suttee.* Co
59 61
564 59
5658 58
5738 58/
1
4 5734 58
1434 1634 1314 1434 14
1434 1614 59,200 Butte & Superior Mining_ 10
1458 15
15
No par
77
7713 80
79/
1
4 2.500 By-Products Coke
7812 78/
77
1
4 79 8014 77
No par
1
4 17,900 Byers & Co(AM)
10314 10512 10314 104/
1
4 104
9958 97/
98
100 101
100
40 Preferred
_
111 111
111
111 111 *11112
7,300 California Packing____No par
4 3.75
3- *111--1
4 744 16-4
74/
1
4 7518 7412 74/
7512 763Petroleum
25
California
2,000
1132
3234
3234
323
4
32
32
3134 3214 3214 3234
10
12,900 Callahan Zino-Lead
3/
334 4
334 414
334 4
358 334
1
4 3/
1
4
1
4 1044 10712 22,600 Calumet Arizona Mining._ 10
10318 105/
Stock"' 104 10718 10113 10312 10334 1013
25
2458 19,600 Calumet & Heels
244 24
2358 2412 2312 24
2358 2438 24
1
4 7938 22.600 Canada Dry Ginger Ale.No par
1
4 7712 77/
75/
75
Exchange
76
74/
1
4 73
7614 73
100
299 302 29012 29412 291 295 254 29534 297 30312 7,500 Case Thresh Machine
I.
Case Thresh Mach prat_ _ _100
122 123
Closed. *122 124 3112134 13412 *122 133 *122 123
1
4 39/
1
4 146,300 Central Alloy Steel. __No par
4034 38/
1
4 38
1
4 3558 38/
3778 354 36/
37
low..
1412 1,700 Century Ribbon Mills_No par
154 1434 1434 1412 1412 14
1414 1512 15
Extra
100
20 Preferred
*8312 87
87 87 *8314 87
1
4 *8314 89
8834 88/
7252 7378 7314 7512 108,200 Cerro de Pasco Copper-No par
6972 7114 7012 73
69/
1
4 72
Holiday.
par
Certaln-Teed
Products_No
57,100
411
/
4
4534
45
484 5112 4034
5014 51
5058 52
100
400 7% preferred
98
98
99 99
100 100 100 100 *99 100
No par
300 Certo Corp
*7113 74
74 *7112 74
*71
71
*71
711
/
4 71
10
1118 23,900 ChandlerClevelandMotNo par
12
1114 12
1
4 1112 11
11
1112 10/
No par
2018 10,500 Preferred
/
4 18
2014 211
1
4 1914 21
2058 2114 1914 20/
No par
14,700 Chesapeake Corp
7518
76
7612
76
7474 7914 744 7612 7512 7614
300 Chicago Pneumatic Tool__100
12812 12812 12714 12714 1284 12812
*126 130 *127 130
No par
440 Chicago Yellow Cab
34/
1
4
331
/
4 33
334 33
33
33
33
33
33
No par
47
471
/
4 z444 4534 5.900 Child. Co
4834 47/
1
4 4534 4613 4534 47
25
1
4 4312 4438 38,800 Chile Copper
4238 43/
1
4 4314 43/
42/
1
4 43/
1
4 4214 43
5,500 Christie-Brown tern etfriNo par
102 102 10278 10278 103 103
100 104
100 106
No par
1
4 79 8012 259,500 Chrysler Corp
78/
1
4 79/
/
4 7552 79
7614 7912 7432 761
No par
200 Preferrea
115/
1
4 11534 *11538 11634 11634 11634 *116 11634 *116 11612
300 City Stores class A__ NO par
1
4 53/
1
4 *5334 5412 *5334 5412
5334 5334 *5334 5412 53/
Claw
B
No
par
6,000
9138 02
91
8834 89
87
8814 *85 8734 87
9114 93
89
91
877e 8978 8634 8914 8718 8834 5,700 Cluett Peabody & Co No par
100
10 Preferred
12012 12013
•12012 122 111204 122 *12012 122 *12012 122
No par
16,700 Coca Cola Co
1
4 173
1
4 1661
/
4 169 16912 169/
16258 16514 164/
168 171
8034 7618 7958 35,600 Collins & Altman new_No par
6934 75/
1
4 7012 7334 7158 7534 76
100
100 Preferred
*9612 98
*9812 994 39914 9914 *9612 98 *9612 98
100
/
4 774 31,800 Colorado Fuel & Iron
7312 7712 761
70/
1
4 71
71
72
7014 73
914 2,300 Columbian Carbon v t oNs par
1
4 *89
89
9014 9034 91/
8918 8912 8812 89
11218 11358 11118 11334 46,100 Coium Gas & Elea new_No par
11058 1144 110 11118 11018 112
100
700 Preferred new
10712 10712 108 108
107/
1
4 108 *108 109
107/
1
4 108
8514 16,300 Commonwealth Power_No par
1
4 83
8438 8418 88/
8334 8512 8218 84
83
3312 3314 3314 3,000 Commercial Credlt____No per
3212 33
33
34
3258 3314 33
25
460 Preferred
254 2512 2512 254 2552
2512 *25
25
2512 *25
200 Preferred B
27
27
25
2612 2612 2612 264
27
27
27
27
380 let preferred (634%)
100
*9314 93/
1
4 93/
1
4 937/3 94
934 9412 934 9314
94
6934 70
691
/
4 8934 89/
7058 7034 *694 70
1
4 8938 1,100 Comm Invest Trust--No par
*108 109 *106 109 *106 109 *108 108 *106 108
100
7% Preferred
97 97
*96
9712 *gg
97/
1
4 *96
974 *96
9712
100
200 Preferred (634)
/
4 16934 17312 3,900 Commercial Solvente._ No par
1
4 1691
.
1 165 169 *163 168
165 16512 166/
63
62
6312 62
3,600 Conde Nast Publica_No par
6012 Si
61
6214 5812 60
2758 3.700 Congoleum-Nairn Ine_No par
27
2714 2818 2838 274 2638 2738 2714 28
1
4 7134 7338 7214 7334 724 7214 2,300 Congress Cigar
1
4 73/
/
4 71/
No par
73
741
1
4 854 88
86
8612 8518 85/
5,100 Consolidated Cligar
86
87
No par
86/
1
4 89
994
99 99 *99
98
600 Preferred (6)
100
9718 9718 98
99 99
214 238
214 238 20.200 Consolidated DlstrIb'ersNo par
24 238
212
2
238 234
15514 15834 91,100 Consolidated Gas(NY)No par
15714 160
15112 157
15114 15534 149 152
1
4 102/
1
4 10234 103
3,200 Preferred
No par
10338 10312 103 10318 10258 10278 102/
414 438 13,400 Consolidated Textile_ _No par
414 432
414 412
418 418
44 44
3158
32
/
1
4
3214
6,200
32
/
1
4
32
Continental Baking elANo
3134
par
32
3134
32
32
514 588 12,000 Class B
5
54
518
5
No par
1
4
518 5/
538 512
79
8018 80/
1
4 824 5,000 Preferred
79
100
79
7812 794 *7812 79
104 10713 35,500 Continental Can. Inc-No par
10314 10518 10312 10578 104 106
10558 107
30 Preferred
100
1
4
*12534 12612 *12534 12612 *12534 12612 *12534 12612 12534 125/
13,000 Continental Ins temp otts..10
9078 91
8918
91
8812
907
2
9018
9134 89
90
1
4 1218 1234 1234 1314 1318 1312 37,400 Continental Motors_No par
1234 1314 1214 12/
7714 7814 7814 783$ 7818 78% 15,000 Corn Products Rertntng--25
7614 77
78
77
100 Preferred
/
4 *14412 145
100
14418 14418 •14418 1441
*14418 145 *14418 145
/
4 1641
/
4 6.100 Cot,, Inc
16434 1641
/
4 1641
No par
/
4 165
/
4 1021
162 1641
162 166
8,400
854
85
/
1
4
84
/
1
4
85
/
1
4
8412
Crucible
Steel
of
America_
100
83
/
1
4
8512
1
4
84/
8534 86
800 Preferred
100
1
4 1204 12012 12034 12012 12012 12014 1204
*120 12012 120/
/
4 2734 2714 2778 4,700 Cuba Co
No soar
2538 2.51
1
4 25
24/
1
4 24/
24/
1
4 25
714 7% 2,500 Cuba Cane Sugar
No par
74 714
714 714, 714 714 *634 74 2812
29/
1
4 2938 3018 11,200 Preferred
100
27/
1
4 2634 2814
27/
1
4 2834 27
Cuban
47,800
2414
2312
2358
-American
011g82.-10
23
2238
21
2138
21
2112 22
200 Preferred
100
*103 10412 *10234 10412 10234 103 *10234 10412 *10234 10412
1,000
CubanDom'eanSugnewNo
par
1112
1112
1012
1012
1014
101
/
4
101
/
4
1012
104
1012
9,600 Cudahy Packing new
60
6512 66
64/
1
4 6412 66
64
644 6512 8258 85
1
4 13714 14312 13514 144% 128,400 Curtis Aer & Mot Co-No par
125 132/
128 14334 11812 128
100
__ _ ___ - -- Preferred
-- _--- --. *143
_-_ 143
*143__ *143
No par
100 Cusbman's Sone
*185 193
190 1713 *185 193
185 1-8-5 *183 198
Cushman's Sons pre( (7)_100
12014 123 *1204 123 *12014 123
*12014 123 *12014 123
Cuyamel
3,400
Frult
No
par
52
53
5178
511
/
4
/
1
4
51
50
/
1
4
511
/
4
/
4 5112 5034
511
53/
1
4 17,500 Davison Chemical•to-No par
5278 52
5012 4918 5034 52
1
4 48
53/
52
Deere
&
Co
pref
500
100
1254
12512
12514
125
125
125
1257
8
125
125 125
100
2,700 Detroit Edison
1
4 19114 191 191
190 19034 190/
191 191
19112 192
1,700 Devoe 6c Raynolds A-_No par
*5012 51
1
4 51
5134 50/
5118 51
51
52
52
let
preferred
100
00
115
115
116
*115
116
115
115 115
115 115
100
270 Diamond Match
1
4 152 152
152/
1
4 152/
151/
1
4 152
*15134 15312 151 152
18/
1
4 1912 1874 1912 1914 2018 50,100 Dodge Bros Class A____No par
1874 1952 1814 19
Preferred
cent!
11,800
No
Par
70
71
70
/
1
4
7012 70
70
7012 7034 8934 70
No par
012 9/
1
4 1,300 Dome Mines, Ltd
912 934
912 94
912 10
958 958
1,900
62
60
/
1
4
Dunhill
International_No
par
61
*6034
6012
6034 6012
60
61
81
400 Duquesne Light let pref __MO
/
4 1010412 105 *10412 105
105 1051
10518 10518 105 105
Eastman
Kodak
5,100
Co
No
Par
18178
18412
1824
182
17913
17814
17814 180
17918 180
100
60 Preferred
130 130 *130 132 *130 132
130 130
*130 132
3833 3734 12,600 Eaton Axle &Spring-No par
3614 3714 3512 3658 3534 37% 3878 38
I
du
Pont
E
de
5,400
Nem
new_No
par
395
394
393
*390
380 390 385 393
393 398
100
1,200 6% non-vot deb
118 11812 118 119 *118 119
119 119
120 120
-ie
•841 and asked otiose no Wei on anis las
. Os divIdend
s 3,.rigbes
PER dkIAKE
Range Sines Ian. 1.
On basis of 100-altarelois
Highest
Lowest
3 per share
10114 Jan 18
10738May 14
1214 Mar 16
711
/
4 Jan 17
1818 Jan 20
8514 Feb 18
5334 Jan 19
as% Jan 20
119 Mar 6
35 Mar 2
10912 Jab 11
8712 Apr 30
8514 Jan 3
514 Jan 4
4114 Mar 14
159 Feb 20
1818 Jan 28
2118 Feb 4
118 Jan 10
214 Jan 5
206/
1
4 Jan 10
145 Feb 20
47 Jan 10
2712 Feb 20
2412 Feb 1:
3338 Feb 17
9312 Feb 17
15/
1
4 Mar 8
9734 Feb 21
139 Jan 14
5814May 25
10714 Jan 4
11418 Feb 15
44 Jan 19
45 Feb 7
9 Jan 11
65 Mar 1
9012 Jan 16
10858 Apr 13
71/
1
4 Mar 3
2514 Mar 16
134 Mar 8
89 Feb18
2018 Jan 10
54/
1
4 Jan 5
247 Jan 21
128 Jan 30
281. Mar 27
1112 Feb 18
8014 Feb 21
584 Jan 3
4034May 24
98 May 25
71 May 3
512 Feb 29
14 Mar 13
7258 Mar 7
125 Feb 20
3014 Mar 24
37 Apr 19
37/
1
4 Mar 6
85 Jan 4
54/
1
4 Jan 18
113/
1
4 Jan 9
511
/
4 Jan 19
52 Jan 5
774 Jan 10
11818 Mar 21
127 Feb 20
67 May 17
98 May 17
6812 Feb 27
8612 Apr 20
8912 Mar 15
10718 Feb 28
6214 Jan 11
21 Feb 20
23 Feb 3
23 Feb 7
8734 Feb 2
5534 Mar 1
99 Jan 27
94/
1
4 Mar 8
1531
/
4 Feb 18
48 Jan 14
2338 Feb 8
67 Feb 18
7913 Jan 20
9838May 16
74 Jan 21
11108 Jan IS
1014 Feb 16
318 Feb 9
2612 Apr 10
3/
1
4 Apr 10
73 Apr 10
8014 Jan 10
123 Jan 6
76 Feb 15
10 Mar 13
6434 Jan 3
1384 Jan 16
123 Jan 3
8338 Feb 18
1124 Mar 16
22 Apr 4
512 Feb 16
24 Feb 18
194 Feb 18
10112 Feb 16
1014May 23
64 Jan 3
5318 Feb 27
117/
1
4 Jan
14434 Jan 13
114 Jan 11
5014May 10
3438 Feb 18
1154 Feb 1
16612 Jan 11
40 Jan 8
108 Jan 9
134/
1
4 Jan 18
17 Feb 18
684 Feb 18
812 Apr 23
5512 Jan 9
104/
1
4 Apr 12
163 Feb 20
125 Mar 7
28 Jan 11
810 Jan 10
115 Mar 9
FISK al-JAILS
Range fo Previous
Year 1927
Lowest
Higheal
$ per share 3 Per Chars 8 Per skar0
4194 Jan 109 Dee
1401/ Mar 1
Jan 110 Aug
11038 Mar 28 101
14 Oct 184 June
204 Apr 25
5014 Apr 744 Nov
834 Feb 9
154 July 2714 Jan
22 Jan 12
9212May 14
711
/
4 Apr 27 -4934 Aug -5115s Nov
/
4 Sept
4334 Jan 861
6918 Apr 14
125 Apr 13 10434 Jan 120 Dee
34 June 5278 Nov
4412 Jan 5
11112 Apr 5 10912 Jan 114 Nov
44 Jan 95 Dec
98 May 14
1
4 Dee
534 Jan 69/
7834 Jan 27
838 Apr
44 Sept
778May 14
.May
36 Sept 57'
49 Jan 11
187 Jan 11 16712 Dec 169 Dec
18 May 3012 Sept
23 Jan 4
1912 Sept Ws Feb
3434May 24
12 Apr
2 Dee
914May 25
74 Dec
1 Apr
12 Feb 1
Dee
26814 Apr 13 14812 Feb 225
8958 Ain• 15718 Dec
1594 Apr 14
304 Feb 6014 Dee
5512 Apr 5
5138May 16
257s July 3878 Jan
4834May 14
6458May 14
8512 June iitoi Jan
119/
1
4May 18
184 Mar 3434 Jan
3638May 25
90 June 100 Jan
106/
1
4May 25
165 Feb 3 z90 Mar 145 Dec
2934 Jan 69 Nov
6714 Apr 13
9114 Jan 111/
115 May 21
1
4 Dec
119 Feb 4 10358 Feb 120 Aug
3/
1
4 Mar
938May 25
(Ps May
44 Oct 1311
6712May 15
/
4 Feb
1
4 Nov 1134 Jan
7/
1634May 21
66 Jan 924 June
8014May 24
42 Jan 10234 Dec
1174 Jan 27
112/
1
4 Jan 14 10534 May 1124 Dee
79/
1
4 Apr 13 604 Apr 79 Dec
3284 May 22i
.
-2111 Jill
-114 Sept
538 Apr 30
12014 Jan31 6112June 12312 Dec
2478May 15
1414 July 2434 Dec
36 Jan 6018 Aug
8612May 8
308 Mar 22 132 Jan 28314 Oct
135/
1
4 Mar 30 111 Feb 129 Dec
24 Apr 33 Apr
4034May 24
1
4 Aug
104 Jan 16/
1758 Apr 4
70 Jan 8834 Dec
92 May 15
1
4 Dec
613 June 72/
7512May 25
62 Jan WI MAY
6458 Apr 28
100 May 21
77 Jan 12 -85 Dec -787; Aug
13121day 15
44 Nov 14 Mar
13 June 264 May
2538May 15
1
4 Cot
8434 June 86/
817s Jab 6
14114 Jan 30 1204 Jan 1874 Mar
43 Jan 14
38 July 47 Oct
48/
1
4 Mar 6538 Aug
5212 Ian 7
3318 June 41434 Dee
441
/
4May 16
3478 Jan 9078 Dec
131 Jan 23
3818 Jan 634 Deo
8112May 15
1
4 Apr 116 Deo
117 Mar 12 102/
4014 Mar 54 Dee
54 Mar 12
4112 Apr 8412 Dee
93/
1
4 Mar 27
51 June 844 Oct
10934 Apr 5
12434 Mar 19 11114 Jan 1254 Nov
177/
1
4May 15 89612 Apr 19912 Apr
1
4 Dec
86 Aug 113/
1111
/
4 Jan 3
1
4 Dec
109 Jan 3 10212 Sept 1091/
1
4 July
42/
1
4 Jan 98/
8412 Jan 31
6072 Jan 10114 Nov
9814 Jan 24
8278 Feb 9834 May
1181
/
4May 16
/
4 Jan 11018 Dec
1101s Jan 3 991
1
4 Oct
4858 May 78/
8712May 8
14 June 244 Dec
3538May 4
17 June 2412 Sept
27 May 8
187s June 25 Dec
27/
1
4May 11
69 July 89% Des
96 Mar 16
414 May 82 Dec
74 Apr 17
944 Sept 102 Dee
109 May 14
88/
1
4 July 9814 Dec
9712May 11
18912 Mar 28 145 Nov 203 Sept
39 Aug 53 Dec
6312May 24
1714 Jan 2934 Dec
3112 Apr 17
47 Mar 884 Dec
811
/
4 Jan 3
744 Oct 8634 Jubr
9512 Apr 17
1021
/
4 Apr 18
-21; Feb
-12 Oct
3 May 18
94 Mar 1264 Hee
17014May 7
93 Mar 103 Dec
105 Mar 28
3/
1
4 Mar
74 Me
Mg Mar 28
33/
1
4 Apr 7474 Jan
53/
1
4 Jan 13
4 May 1014 Jan
6 Jan 13
72 Apr 97114 Nov
961
/
4 Jan 20
5834 Apr 887s Dec
11478 Apr 10
128 Mar 26 120 •Jan 126 June
7412 Dec 9334 Doe
94/
1
4May 15
8/
1
4 Nov 1358 Jan
1478May 8
4674 Jan 68 Nov
8274 Apr 13
146/
1
4 Apr 10 128 Jan 14214 Dec
66 Jan 123 Dec
17774May 2
761
/
4 Oct 964 Mar
93 Feb 7
121 May 11 103 Jan 115 Sept
184 Aug 3414 Jan
28/
1
4May 8
4/
1
4 Oct 1034 Jan
712May 12
2838 Nov 5034 Jan
3238 Jan 12
1878 Nov 2812 .11,8
2414May 25
974 Nov 107 Aug
108 Feb 1
104 Nov 18 Jan
12 Jan 4
43/
1
4 Apr 6858 Sept
7238 Feb 14
1
4 Doc
454 Nov 69/
19234May 16
1434 Apr 18 111 Nov 118 Dec
192 May 18 103 Apr 152 Cot
125 Jan 20 107 Apr 125 Dec
30 Apr 5512 001
55/
1
4 Jan 20
2614 Apr 484 Dec
5638May 1
12634May 15 10612 Jan 12512 Nev
195 May 18 13312 Jan 17012 Deo
384 Aug 427s Dec
61 Apr,18
120 May 16 101 Jan 11414 Dee
Feb 14714 311123
116
2
161 Feb
1814 008 2714 J1111
2412 Jan 4
75/
1
4 Jan 4 664 Oct 85 Feb
7 June 1414 Dee
13/
1
4 Jan 6
49 Aug 624 Oct
76 Mar 29
Mar 11734 Nov
11414
3
11612 Mar
186 May 14 13614 Jan 17514 Sees
134 Apr 3 11914 Jan 1314 Oct
2114 Oct 2934 June
39 May 16
40034May 7 168 Jan 8434 ?Cot
121t2may 8 1054 Feb 118 Dec
New York Stock Record-Continued-Page 4
3263
For sales during the week of stocks not recorded here, see fourth page preceding
HIGH AND LOW BALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
May 19.
Monday,
May 21.
Tuesday,
May 22.
Wednesday, Thursday,
May 24.
May 23.
Friday,
May 25.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
PER SHARE
Range 811106 Jan. L
Os basis of100-share lots
Highest
Lowest
PER SHARE
Range for Previous
Year 1927
Lowert
Highest
Per share $ per share 8 per spare
per share
$ Per share $ per share $ per share $ per share $ per share $ Per share Shares Indus. & Miscel.(('on.) Par
105 Nov 164 Feb
25 124 Jan 3 23 Apr 12
6,500 Elsenlohr & Bros
181: 1938 1834 20
18
1834 18
19
1958 18
219
May 10
6312 Jan 102 Dee
Jan
3
98
par
NO
Electric
Autolite
5,000
19412
197
194
197
1914 19712 192 19334
198 200
131s Mar 2218 Aug
1
4 Apr 19
No par 1218Mar 2 16/
1312 1412 1414 1412 144 1512 18,500 Electric Boat
1418 1412 13% 14
184 Jan 323* Dee
NO Par 2814 Jan 10 4512May 14
41
41
4134 4112 4258 60,900 Electric Pow & Lt
39
42% 3834 40
40
No par 10613 Jan 10 11018Mar 8 98 Jan 109 Nov
109% 10912 *10912 10984 10912 10934 109% 101% 10978 10978 1,200 Preferred
6/
1
4 Nov 87/
1
4 Jan
Electric Refrigeration-NO Par 1118 Feb 6 1712 Mal 19
8314 May 7911 Jan
- 8034 823s 10,700 Eleo Storage Battery No par 69 Feb 20 8418May 18
2 136f2 -£1278
If "iirz "8-63; 7834 161
7 Dec 1553 May
9 Jan 1
6/
1
4 Apr 17
600 Elk Horn Coal CorpNo par
734 734 *7
7%
7
7
7% '7
6/
1
4 634
3 Oct 13 Apr
514 Feb21 1438 Apr 27
1,000 Emerson-Brant Class A.No par
12
12
12
12 *11
1218 •1078 12 *10
12
30 July 374 Mar
No par 3014 Apr 2 33 Mar 1
Emporium Corp
*301: 31
*3012 31
*3012 31
*301: 31
*3012 31
6484 Jan 8114 Dec
8212 8084 82
8184 8134 8184 8214 2,000 Endicott-Johnson Corp__ 50 7584 Jan 10 85 Apr 17 1168,
*824 8284 82
Jan 125 Sept
100 12114 Jan 27 127 May 18
200 Preferred
•12434 12678 *12484 12678 *12434 1267 11254 12518 125 125
212, Jan 395 Oil
4134 4214 414 4173 42% 4212 6.200 Engineers Public Serv_No par 33 Feb 18 4614May 7
4084 42
40% 42
9384 Jan 1083e Dee
No par 107 Jan 2' 1103 Apr 18
100 Preferred
*11034 11073 *11084 110% •11034 1107k •11084 11078 11014 1104
24/
1
4 Jan 3518 Dee
5 33% Feb 20 3838 Jan 23
Erie Steam Shovel
844 Sept 9313 Dee
9018 Jan 7 145 May 15
13514 1397 1331 13318 13314 13434 134 137
15753 11715 ---.5155 Equitable Office Bldg__No pa
50 Aug 774 Nov
69 Feb 20 79 Jan 3
7312 2,500 Eureka Vacuum Clean.No pa
72
73
73
7112 72
73
7212 74 •72
154 Jan 23 Dee
20 Jan 30 2278May 7
100 Exchange Buffet Corp_No pa
*21
2212 *21
2212 21
21
2212
2212 *21
*21
304 Nov 431k Ma'
3212 Jan 5 54 Apr 19
No pa
434 4318 1,200 Fairbanks Morse
44 *43 44
444 4434 434 4434 44
100 104 Jan 9 11434May 14 107 Deo 112 May
60 Preferred
11014 11014 *109 11014 110% 11038 *109 110 •109 110
1
4 Des
92 July 115/
12512 12658 22,700 Famous Players-Lasky_No par 1114 Jan 16 131 May 7
1254 127
1233* 1254 12318 12412 125 126
8713 Jan 47 May
15 42 Jan 10 56348lay 2
2,900 Federal Light & Tree
544 55
55
55
544 5412 53'2 5458 53% 54
Feb
9113
100
19
Aug
109
Apr
Jan
6
98
No
par
Preferred
20
*104
107 107 *10214 107
107
107 107 *104 107
60 Feb 187 June
Federal Mining & Smelt'g-100 120 Apr 17 145 May 15
•125 140 *125 140 *135 140 *135 140 *135 140
754 Jan 97 Mar
100 914 Jan 3 99388lay 21
9912 *98
991 *98
9812 9938 9812 9812 *98
9912 1,100 Preferred
1
4 Jan
17 Dec 30/
8May 8
*21
22
214 21% 22
217 22
2112 2,500 Federal Motor Truck_ _No par 1712 Mar 21 257
2184 22
3,400 Fidel Phen Fire Ins N Ynew 10 89 Apr 26 9412May 16
91
9012 9134 91
9034 92
9018 9184 9014 901
'lir
Nov
141
1
- May
1514May
10
Jan
9
1114
No
pa
Bus
Ave
Fifth
40
*1314 147 *1314 147
1314 1314 1314 1314 1434 1434
1914 May 80 Feb
28 Apr 4 3578May 25
No Pa
3312 3312 3578 27,600 First Nat'l Stores
321
33
3218 33
32% 3234 32
1453 Oct 20 AIN
No par 1412 Mar 14 17% Jan 4
1478 1538 144 1518 22.500 Fisk Rubber
1434 154 1453 1484 1458 15
81 Jan 100 Sept
*8212 8414 8414 85
8618 8614 2,400 let preferred stamped___100 82 Mar 1 9112 Jan 10
834 84
85 86
9412 July 102 Sept
100 8934May 18 9734 Jan 5
200 1st preferred irony
90 *85 897 *---- 8984 89% 89%
*-- - 8978 *- _ _
783 Apr 14
4618 Feb 7118 Dec
20
Feb
66
pa
new-___No
Flebichman
Co
31,000
7214.
73
71
72
7214 7314
728
7218 7318 7114
35
Nov 8858 At,,
5534May
18
Mar
5
42
No pa
48
48% 4818 4834 4834 1.000 Foundation Co
49
*49
52
49
49
50 June 8511 Dee
764 Mar 15 8978May 15
No pa
87
8814 30,800 Fox Film Class A
85 8814 834 858 8312 858
8584 87
3414
Jan 10612 Dee
11
,
8
Jan
20
10914
Feb
85
pa
No
Texas
Co
70% 7118 7014 7278 22,500 Freeport
6918 7014 6812 6914 68% 701
No pa 10318 Mar 17 1097g Apr 23
*111 11284 107 107 *10612 1083 10612 10814 *107 10814
400 Fuller Co prior pref
22 Dec 59 Aug
No par 15 Mar 23 281: Jan 5
18% 20
19
2012 1884 191
1978 2014 1918 1958 5,900 Gabriel Snubber A
612 Jan 1513 Dee
1153 Jan 17 1884 Feb 2
No par
1258 13
1258 128 1258 127
5,000 Gardner Motor
13
1314 12% 13
46 Jan 64/
1
4 Dee
15
74% 74% 75
73
7414 75
73
737
75
7512 5,800 Gen Amer Tank Car__ _No par 60% Feb 20 7712MaY 15
10838
Mar 11212 Sent
11134May
Jan
9
110
100
Preferred
11112 11112'111 112 *111 112'
111 112 *111 112
100
65 Aug 96/
1
4 Mat
100 7114 Feb 20 947 Apr 30
864 8978 8584 874 8614 8812 87
18,700 General Asphalt
88's 8714 88
100 114 Feb 20 14112 Apr 30 10714 Aug 14478 Mar
*131 139
130 131 *131 136 '
Stock
3130 136 *130 136
200 Preferred
opt
*140 ___ 140 1401i 1394 13958 •140 _
150 General Baking pref_ __No par 134 jan26 142 May 10 11812 Apr 160
*140
No par 21 Feb 4 3512 Apr 28
284 2934 3034 3034 294 2914 1,800 General Cable
Exchange *2918 3012 2812 291
551: Dec 62't Dee
7584 7512 78
No par 58 Feb 9 8078 Mar 20
76
768 74
754 76
7514 76
8,500 Class A
62 Jan 744 Dec
6614 67
Closed.
8514 66
651 6512 66
604 66% 6718 4,100 General Cigar, Inc new_No par 6518May 23 7538 Feb 2
100 116 May 16 130 Apr27 118 Jan 186 Sept
*11718 120 *11718 120 *11718 120
120 120 •1171: 120
10 Preferred (7)
54/
1
4 Apr 594 Nov
5534 5584 554 5518 54
55 .544 55
Extra
5438 5412 1,600 Den Outdoor Adv A__ _No par 54 May 23 587 Jan 3
37 Jan 684 Nov
4212 4114 4158 4034 4118 9,100 Trust certificates _ ---No Par 3858 Apr30 523e Jan 7
4253 4312 4234 43
41
81 Jan 1464 Sept
No par 124 Feb 27 17412 Apr 16
155 15934 15512 1594 15912 16384 15812 16312 108,500 General Electric
Holiday. 16018 163
1
4 Jan
11 June 11/
118s 1112 1138 1112 114 1158 1138 1112 1138 1138 4,200 General Electric, special__ _ _10 1114 Jan 23 1134May 2
34 Apr 4712 Fat
474 4778 45
46
45
45 *45
47
4434 464 2,200 General Gas & Elm A_ _No par 3514 Jan 18 5034May 16
100
Jan
1104
OM
118
May
10
4
Jan
10812
*116 120 '
3116 120 *118 120 *116 120 *116 120
Elea
Gas
&
of
A
(7)
No
Par
Um
*135 140 '
3135 140 *135 140 *135 138 *135 140
No pa 12214 Mar 22 144 Apr 18 11314 Mar 12338 Nov
Preferred A (8)
96 Jan 1054 Dec
No par 10511 Jan 17 11478May 16
*112 115
11214 11214 *111 11412 *106 113 •106 113
100 Preferred B (7)
191 19414 1854 19034 18538 194
192 19434 12038 1944 540,500 General Motors Corp new _25 130 Jan 10 210 May 7 11314 Aug 141 Oct
100 1234 Jan 26 1271: Apr 12 11812 Mar 125% Dee
12514.12512 12514 12512 12512 12512 12584 1264 126 126
2,500 7% Preferred
8212 Jan 16314 Sept
8618 Apr 23 12358 Jan 3
9112 9134 8914 907
90
9134 9114 927k 9114 9312 17,200 Gen Ry Signal new---No Pa
38 Jan 81 Dec
531251ay 18 82 Jan 3
56
6134 5312 58
57
59
5712 58% *5714 59
3,700 General Refractories__ _No pa
9514 Nov 10913 Oct
9812 Jan 16 1124 Apr 13
: 104 10584 10538 1081 10478 10578 14.7000111ette Safety Rasor_No pa
105 1058 10314 1051
3512 Dec 59 Sept
5278May
24
Mar
6
344
4453 4453 4558 4718 51
44
527
8
No pa
4612 4978 69,900 Gimbel Bros
498
91 Nov 1084 July
•95
100 87 Mar 6 98 Jan 12
9612 *95
9612 9634 97
97
9738 9712 98
2,000 Preferred
1481 May 22 Mu
20fe Jan 27 2838May 23
264 25
No pa
244 2434 2378 244 24
2534 2478 25 25,300 Glidden Co
86
Aug 101 June
16
May
Wit
10034 10112 *101 10112 *101 10112 10114
100 95 Jan 4 102
101 10114
270 Prior preferred
42 Mar 7834 Dee
9112 8818 9178 9112 934 9212 94% 23,700 Gold Dust Corp•S 0.--No par 71 Jan 16 10538 Feb 15
89
914 94
42% Jan 9612 Dec
8418 8534 8438 8814 864 883
8678 89
8614 8818 42,700 Goodrich Co (B F)No par 7814Mar 7 9938 Jan 4
95 Jan 11112 Dec
__100 10912 Feb 17 1153sMay 1
•114 11518 114 114 *114 115 *114 115
115 115
300 Preferred
4838 Aug 6938 Dec
5258 54
51
5214 521: 29,500 Goodyear T & Bub
5278 4882 5012 49% 51
NO Par 4812May 22 7211 Jan 4
No par 924 Mar 18 994 Jan 13 9212 Nov 987 Dec
96
9634 9612 9612 9614 9684 9612 9753 974 97% 5,100 181 pref
57% Jan 8558 Dec
8714 88
*87
8938 89% 854 8784 8618 881
8712 6.900 Gotham Silk Hagen?. No Par 78 Jan 4 9378 Apr 14
58 Jan 854 Dec
8612 874 88
88
*85
8878 8912 85 87
No par 7812 Jan 5 93 Apr 14
87
1,900 New
124 124
100 11538 Jan 16 130 Apr 12 104 Jan 122 Sept
124 124
123114 12334 123 123 *122 124
600 Preferred New
11084 11084 *110 112 *110 112
*110 112 *110 112
10 Preferred ex-warrants_ _ _100 109 Jan 3 112 May 7
594 oi2
73 Apr 18 12% Feb 2
Nov
Oct
984
984 98
94 918 *9
9
9
No par
600 Gould Coupler A
33% 34% 3234 3312 3278 3453 3414 35
3312 34% 26,400 Grahain-Palge Motors_No par 1634 Feb 18 394 Apr 12
5358 55
5412 547
5434 55% 28,200 Granby Cons M trim dr Pr_100 394 Feb 18 5678Nlay 15 Ili; Jan 45 May
5384 5612 534 547
3518 Dec 448* Sept
354 3678 364 37
37
36
3638 3514 36
3712 20,500 Great WesternSugarnewNo Par 31 Jan 26 38 Jan 7
*118 11834 118 11834 *118 11884 *118 11834 *118 118%
140 Preferred
100 11212 Feb 20 120 Jan 3 11812 Feb 123 Sept
120 12612 11814 12253 12153 12714 12312 12814 124 127
2914 Jan 1511: Dee
92,200 Greene Canalise,Copper_ _ _100 113 Feb 18 1641: Jan 4
93 Jan 4
8
884
812 9
812 834 9,000 Guantanamo Sugar_ _ _ No par
84 84 •712 814
7 Oct 114 MaY
7 Feb 23
10318 10538 10318 1031: *95 10538 10314 10314 •1031: 10512
9578 Jan 106 Dee
'
30 Preferred
100 103 Apr 18 107 Jan 7
66
6412 6412 6358 6434 6338 6358 8412 65
40 Oct 64 Feb
6812 1,700 Gulf States Steel
100 51 Jan 0 687aMay 10
2412 25
25
2478 247 *2413 2414 2412 2412
24
22 Aug 27 July
190 Hackensack Water
25 23 Jan 5 30 Jan 31
60 *5912 6012 59
3 flee
5512
6012 8012 6012 8012 60
58 Jan 72,
110 Hanna let prof elms A___ _100 59 May 25 794 Jan 19
*2512 27 *2512 27
*2512 27
*251: 27
*2512 27
2212 Oct 274 Mae
Hartman Corp class A_No par 24 Jan 6 275, Feb 3
1813 Dec 298 APT
2014 204 2033 203s 21
20% 21
5,200 Clam B
2012 2012 20
1914 Jan 4 2518 Jan 27
No par
11184 112 *109 112 *109 112
*109 11212 109 109
600 Helms ((I W)
26 109 May 18 11812 Feb 20 7612 Jan 126 Oel
132 132
*132 ____ '132.__ 132 132
*132
20 Preferred
100 121 Jan 3 132 May 3 11814 Jan 130 July
5534 5618 5853 57
574 59
34/
1
4 Dec 4014 Dee
*5612 571
5814 5812 3,000 Hershey Chocolate_ __No par 3034 Jan 31 64 Apr 20
77
79
7014 Deo 7512 Dee
7612 7618 7614 77
79
7784 79
7912 3,900 Preferred
No par 7014 Feb 6 P2 Apr 16
9958 Dec 103 Dee
10312 1031 1034 1031 *10314 10334 10312 10312 *1034 10334 1,100 Prtor preferred
100 10112 Jan 3 105 Apr 14
1
4 July
22 Jan 61/
22 *214 22 '2118 22
214 211 *21
*2112 22
200 Hoe(R).1 Co
No par 20 Apr 18 30% Jan 20
1
4 Oct
814 June 40/
3312 3353 *3312 337,
3312 33'2 3212 33
3418 341
600 Hollander & Son (A) No par 2912 Jan 10 3678 Apr 13
60 Jan 76 Oct
72
721 *71
7012 7112 *70
71
72
71
•72
600 Hemostats Mining
100 67 Jan 4 78 April
41314 Jan 704 Nov
6784 6912 6512 73
70
*6614 67
73
66% 67
15,600 Househ Prod.Ine.tem etiNopor 544 Feb 21 73 May 24
gots Jan 175 00
145 157
15114 15634 14912 15578 32,500 Houston 011 of Tex tern otte100 127 Feb 27 181 Apr 9
142 1451 31398 142
341
/
4 July 48•8 Dee
5978 5912 60
60 62% 28,700 Howe Sound
59
807
577 5984 58
No par 40% Feb 18 6238May 25
6814 Jan 914 Aug
8358 858 847 8712 8818 89
86
881
87% 89 85.100 Hudson Motor Car__ No par 75 Jan 16 9972 Mar 16
16 Oct 3814 Dee
56
55
57
55% 56% 12,600 Hupp Motor Car Corp
5212 548 53
55
577
10 29 Jan 18 61 Mar 26
1
4 Feb
1712 Maf 32/
274 274 2712 2778 274 2778 7,800 Independent Oil& Gas_No par 2134 Feb 20 3178 Apr 30
27
264 277
288
13 Mar 47 Dee
58
57
58
58
58
59
55
57
69
58
3812 Feb 14 70 A pr 27
3,500 Indian Motoeyele
No pa
1
4 Dee
Jan 102/
92
*11478 119 *11478 1183 *11478 11834 *1144 1184 11478 1144
10 Preferred
100 10014 Jan 3 115 Apr 12
713 May 1218 Sept
1612 174 1634 174 1758 1838 1778 1818 18,000 Indian Reftning
171: 177
9 Feb 18 1912 Apr 30
10
74 June 12 Sept
1618 1634 1638 17
1678 1712 17
161: 17
1714 22,000 Certificates
84 Jan 16 1838MaY 15
10
99 lc 112 Mu
130 130
130 132
130 1301 130 130
13014 13014 1,300 Preferred
100 101 Jan 4 132 May 24
8718 Nov 9812 Apr
*93
96
*93
96
95
95 95
934 9314 95
500 Ingersoll Rand new____No par 90 Feb 18 98 Apr 19
61 Feb 62•8 Dec
577k 601s 574 60 12,300 Inland Steel
57
5718 574 58
5714 58
No par 46 Mar 3 83 Jan 3
Preferred
100 11512 Jan 8 118 Feb 18 111 Jan 118 Col
1212 June 251s Jan
23
247k 23 -2i5;
li- -2484 1512 43,400 Inspiration Cons Copper. ..20 18 Feb 25 2512May 25
11 Nov 26 Nov
1158 12
1214 1238 12% 1312 8,200iIntercont'l Rubber__
12
1218 nt, 12
.No par 1118May 22 21% Jan 4
1
4 Dee
618 Apr 113/
194 174 1812 1814 194 19
193
19
2078May
17
19% 2078 15,400 Internal Agrieul
13 Feb 24
No par
74
75
79
75
7512 7412 7434 74
*77
79
100 4858 Mar 2(i 79 Apr 26 33 Mar 684 May
3,100 Prior preferred
122 125
122 12412 125 1251 12638 126% 6,900 Int Business Machlnes_No par 114 Jan 16 14734 Feb 3 534 Jan 11942 Dee
125 128
1
4 May
71% 704 71
7014 7118 7018 711
71
7138 714 6.200 International Cement__No par 56 Jan 3 7412MaY 16 4514 Jan 85/
Oct 113 Dec
*11012 111
Preferred
100 1081: Jan 4 11078 Apr 26 100
5553 573* 58
50
5714 5912 -5434 568
5712 583 92,900 Inter Comb Eng Corp _ _No Par 4514 Feb 20 6528MaY 15 404 Oct 64 Mar
Oct 10514 Dee
*10614 108 •10614 108 *10614 108
108 108 *108 10834
loo Preferred
100 103 Mar 21 109 May 16 101
26638 270 269 270
262 27578 26014 265 262 266
9,000 International Harvester__ _100 2244 Feb 18 280 May 18 13588 Jan 2551s Dee
14412 14412 14414 14414 *14414 14534 144 1444 *14312 145
100 13614 Mar 1 147 May 1 12684 Jan 139 Dee
1,200 Preferred
8% May
34 Oct
558 54
512 54
54 614
2 5%
738May 9
334Mar 26
84 6% 13,800 Int Mercantile Marine
100
4012 4114 4034 414 41
42
41
424 4214 4278 17,600 Preferred
100 344 Feb 20 445* Jan 17 3211 Oct 55% May
10814 11118 10812 1121z 11238 114
112 113
112 114
38,100 International Match pref _35 9318 Jan 3 12178May 14 62 Mar 9512 Dec
8658 90
8912 9238 9278 98
9512 9912 418,300 Internationa Nickel (The)_25 738 Feb 24 995 Jan 27 3814 Jan 894 Dec
87% 91
7514 7734 7534 78
774 7934 77
7714 79
7912 43,300 International Paper..No Par 674 Jan 16 8638May 14 0394 May 8113 Nov
100 100 *100 10634•102 10634 •102 106%
100 100 Apr 11 107 Apr 12 8514 July 108 Dec
10 Preferred (6%)
11/1 10714 10712 10738 10712 5,500 Preferred (7%)
10712 10758 10714 10712
100 1038, Feb 24 108 Jan 14 964 Jan 1124 Dec
75 Dee
524 5358 52% 531a
1
4 Jan 12 83 Sep
524 5978 5234 543
5978 60
100 4911 Mar 28 68/
850 International Salt
International silver
100 146 May 1 196 Jan 24 13612 Ma 198 Nov
*155 180 *155 160 *155 160 *155 158 •155 160
128
109
Mar
Oct
129
*128
131
Jan
27
*128
*128
1281
22
*128
129
Preferred
129
100 126 Mar
*128 129
17158 176
17714 18112 177 179% 21,400 Internal Toler.& Teleg
100 1394 Feb 20 186 May 14 12314 Jan 15878 Sept
175 17814 17158 174
- •Bid and asked Woes: no sales 00 gib day. •zrameiana.
•E8-rights
3264
New York Stock Record-Continued-Page 5
For sales during the week of stocks not recorded here. see fifth page preceding
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
May 19.
Monday,
May 21.
Tuesday,
May 22.
Wednesday, Thursday,
May 23.
May 24.
Friday,
May 25.
Sales
for
the
Went.
STOCKS
NEW YORK STOCK
EXCHANGE
PER SHARE
Range 8ffsre Jan. 1.
On basis of 100-sharefoes
Highest
Lowest
PEE SHARI
hang.for NUMMI
Year 1927
Lowest
Hig8.041
$ Per share $ per share $ per share $ per share $ per share $ per share Shares Indus. & Mace.(Con.) Par $ per share
$ per akar* $ Per share $ per same
•34
35
3338 34
341
300 Intertype Corp
*3312 341 *34
/
4 *34
3412
191g Jan 3911 June
No par 31 Jan 17 3812 Jan 20
58
58
56
58
5634 58
57
2,100 Island Creek Coal
5514 57
58
4813 Mar 67 Bent
1 81 Feb 17 81 May 14
10014 10013 100 101
100 107 105/
1
4 1073s 106 107
7.700 Jewel Tea, Inc
5312 Jan 86 Dee
No par 7734 Mar 1 11334May 11
*124 125 *124 125 *124 125 *124 125 *124 125
Preferred
100 120 Jan 18 12418 Ape 12 11112 July 125/
1
4 Mar
124 12614 12012 12334 12213 125
12334 1251
/
4 12212 12512 15,900 Johns-Manville
No par 11214 Mar 8 134 May 10
122 12214 12114 122 *12118 122
123 123
12118 12118
260 Jones & Laugh Steel pref__100 12014May 10 12414May 7 117 Feb 123 Oct
3378 3412 3218 3338 3112 3112 3212 34
3312 3414 4,500 Jones Bros Tea,Ino
1038 Jan 34/
No par 2558 Mar 31 4034 Jan 10
1
4 Dec
1134 114 1118 1112 1114 1214 1218 1238 1214 13
9,900 Jordan Motor Car
No par
12/
1
4 July 22/
8/
1
4 Jan
1
4 Jan 18 1434 Jan 3
*110 113 *110 113 *11014 113 *1104 112 *11012 113
Kan City P&L lst pf DNo par 109 May 18 114 Apr26_7114 72
724 7212 714 72
7112 72
7214 7278 4.100 Kayser (.1) Co v t e_-__No par 62/
39 Apr 6514 Dee
1
4 Jan 5 7612 Mar 30
2014 214 20
21
2112 21
204 2114 21
2112 9,200 Kelly-Springfleld Tire
25 15 Feb 17 2738 Jan 3
913 Jan 3214 Nov
8% preferred
*60 68
*61
68 *61
*6012 65
68
*61
68
100 5514 Feb 17 84 Jan 8
35 Feb 102 Sept
60 6018 60
6112 6134 *60 62 •60 62
60
700 6% preferred
100 58 Feb 17 80 Jan 28
44 Jan 9713 Beta
35/
1
4 38/
1
4 34
36
3538 37
3634 3738 37
37/
1
4 37,600 Kelsey Hayes Wheel---No par 224 Jan 10 3812May 18
19 Oct 27 July
*105/
1
4 10912 *10512 107 *10738 10914 10914 10914 *10712 10912
10 Preferred
100 106 Mar 8 11013 Jan 6 103 July 110 Dee
9018 9233 3834 8978 8918 9112 9112 9212 9134 9414 86,400 Kennecott copper
No par 8018 Feb20 9414May 25
60 Feb 90/
1
4 Dec
43/
1
4 46
4214 4214 .4114 44
*4114 44
*4114 44
300 Kinney Co
1
4 Jan 18 52 Jan 19
No par 38/
.934 June 45 Jan
9412 9714 9414 9412 *94
96
9412 9412 *94
460 Preferred
96
100 8718 Mar 22 100 Apr 11
58 June 98 Dee
25 5318 mar 31 76 May 17
7214 7478 70
7214 7012 73/
73/
1
4 72
1
4 73
7314 23,800 Kraft Cheese
49 June 6271 Feb
7118 711
/
4 7038 7118 7014 7114 71
72
7134 721
/
4 10,100 Kresge (S S) Co new
10 60/
1
4 Feb 24 75 Mar 29
4578 Jan 7714 Sept
*116 ____ *116
____ 116 116
116 116 *116 ____
20 Preferred
100 1124 Apr 11 118 Apr 27 1104 Feb 118 July
2212 2212 214 2214 22
234 22
2238 23
2312 3,300 Kresge Dept Stores____No par 1312 Jan 18 2714 Feb 29
10 June 18 Deo
*694 7112 *6912 7112 *694 7012 *69
71
*69
Preferred
71
100 5134 Feb 1 724May 11
45 Nov 80 Jan
*103 108
10114 10214 *10434 108 *104 110 *10412 110
300 Kress Co new
No par 87 Feb 20 11412 Mar 29
59 Jan 10513 Sept
8912 9178 8718 •8914 8718 9112 91
917
8934 917 48,700 Kroger Grocery & Bkg_No par 7314 Mar 27 98 May 15
*210 225 *210 225 *210 225 *215 225 *215 225
Laclede Gas L (St Louls)__100 200 Jan 10 260 Feb 2 17334 Jan 20713 Me
*10413 112 *105 112 *105 112 *105 110 *105 112
Preferred
100 100 Jan 5 12412 Jan 28
96 Jan 130 May
33
3612 35
351
/
4 35
35
35
3512 3514 3512 4,500 Lego OH de Transporl_No par 2733 Feb 20 39/
1
4 Apr 17
2011 Jan 3734 Nov
11318 1151
/
4 112 113/
1
4 112 11538 11434 11538 114/
No par 7912 Jan 10 1211
1
4 11538 13,900 Lambert Co
/
4May 9
68 Jan 8813 Oet
21/
1
4 224 20
2078 2134 2038 22
21
20/
No par 1714 Jan 3 2412May 1
1
4 21
8,500 Lee Rubber & TIre
7 Jan 1813 Dee
48
49
4614 48
4612 4718 47/
1
4 4812 4834 494 10,300 Lebn & Fink
No par 38 Jan 17 5334 Apr 12
32/8 Apr 43 Nov
33
3314 324 32/
324 324 3212 3212 2,000 Life Savers
1
4 32
32
No par 304 Apr 23 3612 Feb 7
2014 Sept 3414 Dee
97
97
96
9612 954 953* 954 97
/
4 Jan 3 0874 Feb 128 Sept
97/
1
4 9734 5,800 Liggett & Myers Tobacco _25 94 May 2 1221
9514 96
9434 9512 9413 9534 9434 96
1
4May 2 12312 Jan 3 *881
/
4 Feb 128 Oct
25 93/
9512 97 19,200 Series B
145 145 *145 146114 14434 145
145 145 *14412 146
100 13514 Jan 30 147 Apr 11 12434 Jan 140 Dee
500 Preferred
*591
/
4 6014 5712 5812 58
5812*5812 60
1,300 Lima Loo Wks
No par 63 Mar 19 654May 14
49 Oct 7638 Apr
60 61
72
73/
1
4 71
724 7134 7473 7313 7418 74/
4534 Sept 7834 Dec
1
4 7514 10.400 Llould Carbonic certifs_No par 6312 Feb 20 7773 Jan 13
72/
1
4 7334 714 72/
1
4 7112 7234 7214 72/
1
4 7338 29,400 Loew's Incorporated_No par 67 Jan 10 77 May 9
1
4 72/
4878 Jan 63/
1
4 Mar
638 6/
1
4
613 6/
1
4
8 May 2
6/
1
4 634
No par
61
/
4 634
534 Feb 9
5 Oct
61
/
4 8/
1
4 2,200 Loft Incorporated
7/
1
4 Jan
30
30
*2913 30 *29/
1
4 30 *2978 30
400 Long Bell Lumber A
No par 28 Jan 3 3534 Feb 3
2512 Dec 68 Mar
30
30
5173 5212 51
1
4 53
52/
1
4 5138 52/
54/
1
4 53/
1
4 544 16,800 Loose-Wiles Biscuit new----25 491
/
4 Jan 10 59 Ap 26 z3513 July 5714 Dec
•120 12112 12014 12014 120 12112 12112 12112 120 12112
100 11912Mar 21 125 May 9 118 Jan 123 Nov
120 181 preferred
Stock
31
2E 2918May 24 46/
311
/
4 32
1
4 Apr 19
3112 3012 31
294 30/
1
4 30
23/
1
4 May 4714 July
3034 34,000 Lorillard
100 10214 *98 100
114 98 May 24 114 Mar 13 107 June 11813 Jan
1,400 Preferred
991
/
4 100
98
99
98 100
Exchange
1533 1612 1514 1512 15
1538 1514 1538 1538 1578 24,000 Lonlaians Oil temp ctfs-Nt. par
9/
1
4 Feb 21 1934 Apr 30
10 Oct 12 Aug
*93
94
9234 93
*9234 94 *9234 94
_100 80 Feb 21 96 Apr 30
50
854 Dec 97 Feb
*9234 94
Closed.
36
3714 3618 3718 3718 3778 374 374 374 374 20,100 LoublivIlle 0& El A..._No par 28 Feb 7 41 May 16? 2338 Jan 3013 Dee
6012 6414 58/
1
4 6038 5834 68
20 Oct 8314 Mar
8614 8812 65
6714 61,300 Ludlum Steel _____ __-No par 2538 Jan 11 6812May 24
l Extra
521
/
4 53
5212 5212 52
43 Nov 6814 Dee
52
52
52
5212 6213 1.900 MacAndrews & Fr'Dee_No par 48 Jan 6 5734 Apr 14
*12012 122
100 10812Mar 2 134 Mar 20 105 June 134 Aug
12012 121
122 122
1,000 Mackay Comprwes
1204 1214 12114 122
76/
1
4 774 77
Holiday.
100 6814 Jan 13 84 Mar 19
7734 2,100 Preferred
77
77
87 Aug 74 Aug
7714 774 774 *77
8814 90
No par 83 Apr 17 107/
8738 8812 8834 91
1
4 Jan 3
8814 Jan 11814 Ma7
894 9138 32.600 Mack Truoto, Ino
904 91
*305 349 *303 349 *310 348 304 348 *310 348
Macy C*
No par 235 Jan 10 350 Apr 11 124 Jan 24312 Nov
32
33
30
31
No par 2214 Jan 9 34 May 7
15,800 MadleLn 8q Oarden
30
204 Aug 2838 Oct
3034 304 3034 3014 32
7
5413 55/
No par 4334 Feb 27 5612 Jan 4
1
4 53/
2912 Feb 5834 Dee
1
4 5438 534 547
54
5412 564 27,900 Magma Copper
54
24
2434 2318 24
1112 Apr 2034 Dec
1
4 Apr 12
24
253* 2534 24
244 4,200 Mallinson (H R)& Co-No par 16 Jan 20 28/
24
*9612 97
9612 9612 *96
110 Preferred
8654 July 95 Dee
9612 96
100 8718 Jan 30 10178 Mat 15
96
96
96
*3214 33 •3214 33 •3214 33
27 Nov 48 Feb
100 3314May 24 41 Jan 14
35
3314 3434 *33
1,400 Manatl Sugar
*---- 70
48 Oct 804 Doe
*80
70 *60
70
100 65 Mar 22 88 Jan 17
500 Preferred
70
70
70
70
•36
3612 36
3918 Dec 4934 Aug
36 *36
361
No par 36 Mar 2 4012 Jan 24
/
4 *3614 3612 *3634 361
200 Mandel Bros
/
4
43 Oct 132 Aug
5612 583s 56
5734 544 5634 5612 5812 56
5714 17,000 Manb Elea Supply ----No par 50 Jan 11 61 Mar 17
41
42
39/
1
4 4034 3934 40
2414 Jan 354 Dee
25 3134 Feb 18 43 May 14
39/
1
4 4014 40 40/
1
4 5,000 Manhattan Shirt
1812 2914 1812 19
12 Oct 224 Jan
18
1
4 6,000 Maracaibo Oil End- __No par 1212 Feb 20 2512 Apr28
184 19
1934 1914 19/
3212 3934 381: 38/
1
4 38/
1
4 39
31 June 5812 Jan
No par 33 Feb 17 4412 Apr 17
1
4 3912 24,700 Marland 011
38/
1
4 39
38/
1
4 61
6678 8013 159/
5934 64
27 Jan 5573 Nov
No par 4514 Mar 6 6512May 24
6338 6512 6312 6412 22,200 Marlin-Rockwell
1658 17
1612 1738 1734 19
1512 Deo 2434 Feb
19
2134 26,100 Martin-Parry Corp_ __ NO par 12's Mar 12 2134May 25
194 19
126 127/
1
4 125 12578 125 128
127 128
82 Jan 18234 Dee
127 1281
/
4 8,000 Mathieson Alkali WorkeNo par 119 Feb 20 13778 Apr 12
*12014 124
123 123
124 124 *12014 123
12014 123
100 115 Jan 12 130 Apr 271 103 Jan 120 Dee
40 Preferred
79/
1
4 794 7814 7918 784 794 *7812 80
25 78 Feb 17 853* Jan 31 8814 June 9011 Nov
7834 s7934 2,900 May Dept Stores new
36/
1
4 3738 3612 365
3612 3678 3612 374 37
1
4 Jan 364 Dee
3738 10,400 Maytag Co
No par 30 Mar 12 404 Apr 251 23/
6812 6812 67 6758 6514 674 674 6734 *66
6712 1,200 McCall Corp
No par 56 Feb 3 7178May 16'
'85
*85 86
*854 86
*8312 86
8712 8712 *8612 8712
55 Mar 90 Dee
10 McCrory Stores class A No par 77 Feb 18 90 Apr 28
z88
88
87
87
0.8
*89
91
5613 Mar 9634 Dee
9012 9012
300 Class B
No par 8012 Mar 14 9813 Apr 28
1114 1114 *11018 114
11018 1104 *110 114
200 Preferred
07 Mar 11613 Sept
110 114
100 109 Feb 8 11114May 21
*2514 274 *2514 2612 *2612 2712 *2612 2712 *264 2712
McIntyre Porcupine Mines....5 2538May 2 28/
24/
1
4 Mar 284 Oct
1
4 Mar 16
27
27 •26
27
026
2634 *26
27
300 Metro-Goldwyn Pictures pf-27 254 Jan 8 27 Feb 9
2454 Jan 2814 Feb
26/
1
4 26/
1
4
311
/
4 34/
1
4 30
3178 31
32/
1
4 3234 34
3212 3378 121,900 Mexican Seaboard 011__No par
94 Feb
3 Aug
Jan 19 39 May 14
438
2038 2138 2012 2138 20/
1
4 2114 21
211
/
4 2114 213* 17,700 Miami Copper
1318 June 2034 Dee
6 1734 Jan 5 2376May 25
307 3238 3058 32
31
3158 3134 3218 3112 324 18,700 Mid-Continent Petro__No par 254 Feb 20 334 Apr 28
39/
1
4 Jan
2512
Oct
114 114 *114 11418 *114 115
114/
1
4 1141
/
4 114 11434 1,300 Mid-Cont Petrol pref
97 Apr 105 Feb
100 10314 Feb 20 11518May 11
538 614
512 578
512 6
634 612
634 64 55,800 Middle States 011 Corp
138 Jan
834 June
738May 10
3
238
Jan
1C
414 434
44 414
414 414
438 412
44 41
/
4 2,500 Certificate,
234 June
118 Jan
5/
1
4May 10
10
11: Jan 3
210 21184 206 109 205/
1
4 20614 *210 215 210 215
1,600 Midland Steel Prod prat-100 199 Feb 18 290 Jan 4 106 Apr 813 Dee
*20
211
/
4 204 2018 2014 204 2112 2112 2178 23
1,200 Miller Rubber etre
1713 Nov 8814 Apr
3
Jan
9
No
27
par
18
/
1
4May
170 170
168 169
16912 1691
/
4 170 170
168 170
1.300 Montana Power
8111 Jan 10913 Oct
100 1021
/
4 Jan 10 175 May 3
1
4 14134 15012 147 14912 1461
144 147 140/
1
4 143/
/
4 15134 97,900 Montg Ward & Co III corp..10117 Jan 19 158 May 14
80/
1
4 Feb 1234 Dee
938 10
914 9/
1
4
938 918
9/
1
4 10
9/
1
4 10
14.200 Moon Motors
1
4 Jan
6 June 12/
No pat
Ma Feb 6 1112May 11
313 334
3/
1
4 314
312 3/
1
4
3/
1
4 3/
1
4
3/
1
4 3/
1
4 3.700 Mother Lode Coalition_No par
112 Oct
4/
24 Jan 27
1
4 Jan
413May 14
934 934
9/
1
4 913
913 9/
1
4
9/
1
4 918
9/
1
4 934
800 Motion Picture
01.3 Sept Ws Mar
No par
5 Mar 29 11 May 9
1712 1734 1712 18
1784 1938 18
1858 18
184 5,500 Motor Meter A
17 Nov 3834 Apr
No par 13 Mar 22 2314 Jan 12
3512 35
1
4 3678 3612 3834 384 3938 36,900 Motor Wheel
3514 34/
35
2034 Jan 2711 Mar
No par 2512 Jan 12 3938May 25
81/
1
4 8178 8334 .82 83/
80
80/
1
4 82
82 82
1
4 2,300 Mullins Mfg Co
10 Jan 7914 Dee
No par 72)8 Feb 17 944 Apr 13
1
4 *10712 11078 *10712 11078
10638 10638 108 108 *10712 110/
40 Preferred
1
4 Dee
80 Jan 110/
100 1044 Jan 17 11034 Jan 9
59
69 604 59 6034 11,300 Munsingwear Inc
60
6214 5534 5914 58
358g May 68 Noy
No par 4834 Mar 5 6212May 18
51
/
1
4
5314
4912
53
47/
1
4 51
55
494 524 60,200 Murray Body new
51
164 Oat 33 Feb
No par 2112 Feb 1 55 May 21
92
9118 904 9278 9138 927
914 92/
1
4 89
9312 64.200 Nub Motors Co
1
4 Dec
No par 8014 Feb 20 10138 Jan 3 604 Apr 101/
1614 1618 1678 1638 1778 10,700 National Acme stamped----10
16
1813 1538 1614 16
6 Feb
7/
1
4 Oct
74 Jan 4 1914May 2
8112 81
81
78
83
80
83
82
83 84
2,500 Nat Bella, flee,
811
/
4 Sept 5612 Dee
No par 41 Jan 3 95 May 4
*102 107 *102 108 *102 108 *102 107 *102 107
Preferred
854 Sept 97 Apr
100 9014 Jan 3 111 May 7
168 17212 17012 17434 22,800 National Biscuit
163 165
184 1664 16312 184
9414 Jan 187 Dec
25 16214 Jan 19 182 Jan 27
146 146 *146 148 *146 148
100 Preferred
*147 15014 *146 151
100 13712 Feb 29 150 Apr II 130 Jan 142 Des
3978 Jan 51/
61
1
4 Dee
6314 591s 6312 6118 6418 63 8412 624 6338 116.900 Nat Cash Register A w 1No par 4714 Jail 16 6412May 24
8414 8314 84
814 8338 83
31.500 Nat Dairy Prod
82
8233 8312 81
5914 May 8878 Aug
1
4 Jan 5 88I8May 15
No par 64/
1
4 2,700 Nat Department Stores No par 2178 Jan 5 2812May 2
1
4 2518 28 •2538 25/
1
4 25/
2514 2514 2518 2514 25/
2014 June 27/
1
4 Mat
95
95
9512 96
/
4 •951s 994 954 9518
400 1st preferred
*9518 991
8913 July 904 Jan
100 91 Jan 10 102 May 2
3934 3914 4,600 Nat Distill Prod °Ste__ _No par 3514 Feb 28 584 Jan 9
/
4 40
3814 394 3878 3912 391
391: 40
17 Feb 80 Oat
58
5814 *58
400 Preferred temp cif._ _No par 55 Feb 28 7138 Jan 9
58
60
*57
58
58
60
43 Mar 6914 June
*58
2973 3012 3,800 Nat Enam & Stamping
1918 Apr 35/
2914 3138 2812 2912 281: 2978 294 30
1
4 June
100 2314 Mar 26 3712 Apr 12
9814 9814 *98
400 Preferred
9912
99
9933 *99 100 *98 100
691s Apr 9171 July
100 9018 Mar 28 9912May 15
500 National Lead
12812 12612 126 12614 *125 128 *1264 12812 1274 1274
100 123 Mar 1 136 Jan 31 895 May 2028* May
400 Preferred A
14714 1474 14714 __-- 14714 14714 *14714 14712 1474 14714
100 139 Jan 3 14714May 18 11313 June 13914 Dee
Preferred B
*12512 __-- •12012 ____ *1201: __ •1201: ---- *12012
100 11212 Mar 20 1211a Mar 30 1044 June 1154 Deo
341
/
4
3438
334
130,000
334
3312
National Pr & LS cats--No par 2138 Jan 16 361
3012
/
4May 15
1914 June 2614 Sept
3214 34
3012 32
26
2712 4,800 National Radiator--No par 26 May 16 4038 Jan 9
2812 2834 2734 2813 28
2812 2812 28
3834 Nov 3912 NOV
85
100 Preferred
*83
85
*83 85 *83
98 Nov 98 Deo
No par 83 May 7 9813 Jan 17
8312 8312 *83 87
9038 918 5,200 National Supply
76 May 9773 Dee
9018 924 9034 924 9012 92
50 90 Feb 21 110 Apr 19
92/
1
4 94
3504 365 350 355 349 35312 34834 35034 3474 34912 1.940 National Surety
100 298 Feb 7 370 May 15 4218 July 373 Deo
1.900 National Tea Co
No par 160 Jan 17 27912May 8 108 Apr 180 Dee
259 263 250 25412 254 260 256 263 *257 259
2434 2514 96,100 Nevada Consol Copper_No par 1754 Jan 18 2558May 16
2438 2512 24
1234 June 2035 Deo
24/
1
4 25
1
4 2414 2412 24/
4318 43/
1
4 2,500 NY Air Brake
43
No par 421:Mar 10 501
4338 4234 4318 43
4312 4334 43
8914 Oct 50 JIM
:Feb 10
1,000 New York Dock
55
55518 5612 54
56
100 52 Feb 18 6414 Jan 4
55
55
58
34 Jan 853s Nov
55
*55
Preferred
1
4 Nov
724 Feb 93/
100 87 Apr 16 95 Jan 4
*8914 92 •8914 92 *8914 92 *8914 92 *8914 92
100 N Y Steam pre!(6)._ __No par 9914 Jan 3 10512May 16
Ms Feb 10218 Oct
/
4 •103 10312
*103 10312 103 103
103 103 *103 1031
110 First preferred (7)___No par 102 Jan 30 115 Apr 19 103 Jan 11412 Oct
11358 1135* *11312 114
11312 11312 *11358 114
11338 114
1
4 May
274 Jan 29/
2838 2812 2812 2834 28% 288 2858 2814 2812 28% 7,720 Niagara Falls Power pf new-25 271: Apr 17 2912May 17
1
4 7438 7313 743* 54,800 North American Co
453* Jan 644 00i
10 58/
1
4 7078 7234 72/
72/
734 7434 71
1
4 Jan 8 7818May 14
554 55
900 Preferred
5518
50 Jan 55 Aug
55/
1
4 *55
50 5314 Jan 3 5558May 16
55 •55
55
554 55
800 Na Amer Edison pref __No par 10213 Feb 15 10578 Feb 7
9613 Jan 105 Oct
10338 10338 1034 10318 *10212 103 10218 103 *103 1034
.53/
1
4 5412 54
120 Northwestern Telegraph...50 60 Jan 5 55 May 15
54
54
3734 Jan 55 Sept
54
5514
54
54
*55
518 Feb
Norwalk
/
4 June
6,200
11
Tire
&
4
4
43
8
418
21
Rubber_
412
15
__
_10
5
May
2
/
1
4
Mar
1
4 312
4/
1
4 5
314
3/
834 Gee 13 Jan
Ntinnally Co (The)____No par
12
12 *10
12 •10
12
*10
*10
*10
8 Mar 8 13 May 14
12
1141314 sad awn anew se Wee ea SW day. e Eig-111vI6en6. e Ex-eightin
New York Stock Record-Continued-Page 6
3265
For sales during the week of stocks not recorded here, see sixth page preceding
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT. 1 Sales
for
Tuesday, Wednesday, Thursday,
Friday,
the
Saturday,
Monday,
May 23.
May 24.
May 19.
May 21.
May 22.
May 25. Week.
STOCKS
NEW YORK STOCK
EXCHANGE
PER SHARE
Range Since Jan. 1.
On basis of 100-sharelota
Highest
Lowest
PER SHARE
Range for Previous
Year 1927
Lowest
Highest
$ per skate $ per share $ Vet Man
per share $ per share Shares Indus.& Miscal.(Con.) Par $ per shard
Per share $ per share I 8 per share
314 Jan 8872 Dee
2818 2814 28
2812 2818 2812 2814 2812 4,000 011 Well Supply
25 28 May 21 41 Jan 11
28
29
100 100 Apr 27 11012 Jan 11 10284 Mar 110 June
*103 10612 10314 10314 *103 10312 10312 10312 10312 10312
50 Preferred
1218 13
11 Mar 174 June
1234 1318 12% 13
No par 114 Mar 27 154May 10
1318 1338 1234 138
7,300 Omnibus Corp
95 95
95
95
95
9512 •951 96
100 90 Jan 11 9612 Mar 8 81 Jan 9913 May
96
96
1,700 Preferred A
7012 7084 7012 7012 *71
73
71
71
7058 7118 1,000 Oppenheim Collins & CoNo par 7012May 21 8812 Jan 7 584 Feb 8212 Dee
2372 Dec 35 Ape
Orpheum Circuit. Ine
1 18 May 9 2412 Jan 9
---;i6i4 89 ---100O Preferred
*o12 89j-8012 -161-2 ;i5j8
100 75 May 9 102 Jan 8 10214 Nov 10812 June
1938 20912 8,700 Otte Elevator
18612 192
1.11
193
so 14718 Feb 20 20912May 25 2103 Feb 15584 Oel
1904 19484 187 190
125 125 *124 125 *124 125
124 124
124 124
100 11914 Jan 24 12512 Apr 5 108 Feb 12414 Aug
70 Preferred
74 Feb 1212 June
2012 2112 1918 2012 1912 2114 217k 2478 2312 2478 147,900 Otis Steel
No pay 104 Jan 18 244May 24
96
6112 Feb 91 Nov
9612 95
9512 *9338 9512 95
97
100 821, Jan 10 9778May 16
97
97
2,300 Otis Steel prior pre
*83
85 *83
85 *83 85
5214 Jan 99 Dee
*83 85
*83
85
No par 82 Feb 21 91 Jar 6
Outlet Co
8233 84
73 Dec 851s Dee
8314 8314 8288 83
86
87
25 7412 Jan 3 9578 Apr 18
8718 8712 1,900 Owens Bottle
*11812 117 *11512 117 *11512 117 *115% 117
11512 11512
10 Preferred_
100 11414 Jan 3 117 Mar 16 107 Jan 120 Nov
31 Feb 50 Dee
51
5114 4918 501
49% 5012 4912 5033 5018 5012 6,500 Pacific Gas - Elea new
25 431s Feb 28 5314May 4
112 133
172 Jan
112 133
112 15*
1 May
112 133
214 Apr 27
114 Jan 3
112 15* 26,800 Pacific Oil
No par
1547 158
15234 15434 155 155
15234 15612 *15512 15612
ISO Pacific Telep & Teleg
100 148 Mar 10 160 May 17 124 Mar 162 Dec
735* 7612 7112 7312 7014 7534 7412 768 7533 7778 129,400 Packard Motor Car
3384 Apr 62 Dec
1
4 Fe
peb 20
8034May 16
10 88
5614
47
4812 47 47
47
4734 47
47
48
5384 Apr 3 6018 Dec 6572 Jan
2,300 Pan-Amer Petr & Trans_ __ _50
48
4834 5034 4712 488 4714 498 4914 5014 4814 50 30,300 Class B
4014 Dec 6612 Jan
50 3784 Feb 20 544 Apr 30
24
2478 23% 2418 23% 23% 2314 2312 2312 231
1684 Oct 377s Jan
5,200 Pan-Am West Petrol B_No par 184 Feb 15 281s Apr 28
1812 20
1832 19
1814 1884 1814 1834 1818 1818 5,000 Panhandle Prod & ref_No par 1112 Feb 11 2114May 14
8 Apr 1878 Jan
89
89
*80 105 *90 100 *93 103
54 Sept83 Nov
*93 100
100 Preferred
100 70 Feb 21 10614May 15
7312 7538 72
7314 72
20 Jan 4658 Oct
7532 7712 7918 791 821 64.300 Park & Tilford tern ctis_No Par 34 Mar 10 8212May 25
13
1334 1212 1312 1234 1314 13% 1312 1312 14 62,700 Park Utah C M
6 Jan 1012 Dec
914 Jan 3 1412 Jan 5
1
6
684
512 6
6
782
7
918Niay 10
314 Dec 12 June
712
74 78 33,900 Pathe Exchange
No par
2 Feb 8
1634 184 1512 1714 1714 1912 1978 21
1812 Dec 41314 June
1818 2014 15,100 Pathe Exchange A new_No pa
818 Feb 9 2312May 10
35% 368 3334 357
3414 3633 3614 3714 3714 373 28,400 Patino Mines & Enterpr____20 2372 Jan 8 42 Apt 30
1812 Aug 2772 Feb
1912 21
1912 2038 2014 2038 1912 1934 20
2,000 Peerless Motor Car
20 Apr 32 Jan
20
60 1612 Jan 27 2578 Mar 18
317
3034 31% 30
3012 30
3012 31
3012 31
1912 Sept277g May
4.900 Penick & Ford
No pa
2288 Jan 7 37 Apr 17
2834 2834 2814 2812 2818 2812 28
2112 Dec 394 .Yar.
2933 29
30
5,600 Penn-Dixie Cement
No pa
2258 Jan 11 31 May 2
*951 97 *9512 97 *9512 97 *9612 97
*9612 97
Preferred
91 Sept100 May
100 94 Jan 5 9618 Apr 25
175 176
173 17414 173 175
17414 17514 175 175
3,800 People's a L & C (Chic)_100 15114 Jan 6 1894 Feb 2 126 Jan 16814 Nov
*168 172 *165 172
16512 168 *168 173 *170 172
700 Philadelphia Co (Pittab) _50 145 Mar 24 17434May 4
854 Jan 15312 Des
*4612 49
*47
49 *4612 49 *4612 49 *4612 49
5% preferred
40 Jan 51 Dee
60 4513 Mar 15 4812May 7
65
5512 55
55
55
5588 55
55
55
55
1,500 6% preferred
50 Jan 5312 Sept
50 52 Jan 3 57 Mar 29
32% 3234 3134 3215'3133 3212 3178 3212 3238 334 11,600 Phil& & Read C & I_ _ _ _No par 2814 Feb 9 39% Jan 3
374 June 4733 Mel
Certificates of int __ _ No pa
27 Mar 13 38 Jan 12
3714 June 47 Mar
2184
2284
2112 "io" 217
2233 2312 2333 25 11:200 Phillip Morris dc Co. Ltd
18 Sept414 Jan
10 15 Mar 1 2312May 24
4112 42% 41
4112 41
4133 4114 4134 4114 4134 14,100 Phillips Petroleum
3514 Feb 20 44,,8 Apr 30
364 Oct8014 Feb
No pa
30
30
*2913 32 *2912 32 *29 34 *29 294 200 Phoerix Honeri
3518 Dec 5272 Anil
5 28 Jan 12 38 May 8
*9814 10134 9814 9814 *9814 9912 *9814 9912 *9814 9912
60 Preferred
100 96 Jan 9 10314 Feb 14 103 Jan 10714 July
1412 1612 1434 163
Stock
16
94 Oct2332 Max
104 Feb 18 1734May 23
1733 1533 1678 1533 1618 79.100 Plerce-Arrow Mot Car _No Da
4333 4678 4612 47
4614 5034 4834 5112 488 48% 8,300 Preferred
3784 Oct10212 Jan
10
3982 Feb 16 5312 Jan 3
14 June
Exchange
4 Mar
514 Apr 27
34 312
12 Mar 3
3
338
3
34
2
3
318
3
34 25,900 Pierce Oil Corporation
*23
29
*23
26
*23 26
2318 231
2318 234
200 Preferred
134 Mar 24 JUDO
100 1614 Feb 20 3012 Apr 26
45, 434
(Nosed.
434 47
433 434
212
Mar
433 434
Pierce
658
Apr
27
512
June
6,000
Petrol'm
par
311
Feb
16
tern ctfallo
44 48
304 Nov374 Aug
3214 Feb 18 4414May 14
4033 4138 3912 404 3912 4014 4012 4178 40% 4118 11,200 Pillsbury Flour Mills__No pa
Extra
*114 117 *114 118 *114 117 .114 117 *114 117
108 Jan 5 12014May 14 104 Aug109 Oct
*46
48
4512 46
45% 4512 45% 4612 47
3214 Mar 744 June
100 4114 Feb 8 534 Jan 4
4734 2,300 Pittsburgh Coal of Pa
Holiday. *8212 8518 *83
851 *8212 84% *8212 8512 8312 8312
7058 Mar 98 Sept
400 Preferred
100 81 May 1 88 Jan 12
*8614 88
*8614 90
94 Dec101 Jan
*8614 90 *8614 90 *864 90
Pittsburgh Steel pref
100 8712 Mar 15 96 Feb 9
*30
34
30
30
30
30 *29
3012 Apr 55 June
32
100 26 Feb 10 364 Mar 20
3012 3112 1,100 Pitts Terminal Coal
*76
77
*76
77
*7612 77 *7613 77
100 76 May 9 82 Mar 13
74 Apr 844 Dec
Preferred
*7612 77
65 Aug 9112 Jan
*64
68
*64 67
6614 6684 *64
67
*64
67
100 Porto Rican-Am 'Fob Cl A_100 8218 Feb 24 7978 Jan 6
3014 3478 3082 3114 3088 33
2378 Feb 24 3512May 18
15 Aug 5272 Dee
3178 3234 31
3238 12,300 Class B
No pa
122 12634 12314 12638 12412 13133 1293 13233 1305
9258 Mar 12618 Dec
,133 219,900 Poetum Co. Inc
No pa 118 Feb 20 133 May 25
*2112 23
2234 2234 *2112 2212 2234 2234 *2112 2212
3612 Feb 7814 Dec
200 Pressed Steel Car new-No Pa
22 Feb 18 2678 Jan 3
*76
7612 Feb 9212 May
81
*76
81
Preferred
*76
82 *77
81
100 77 Apr 11 88 Jan 4
*77
81
23 2432 2284 2234 23
16 Feb 17 267s Apr 30
1634 Jan 3372 May
23
23
23
221 2318 3,600 Producers & Refiners Corp 5
45
45
44% 4418 *4418 4614 4434 4434 *44% 46
5
41 Feb 20 4678May 1
3672 Jan 50 Feb
30 Preferred
*80 82
*80 82
55 Feb 71 Sept
*80
82 *80
6912 Jan 4 91 Feb 17
82
20 Pro-May-lac-tic Brush_ _No pa
794 SO
32 Jan 4672 Sell
5884 6034 56
5884 57
4112 Jan 9 6688May 7
91,300 PubServCorp of N JnewNo pa
5933 5934 61
6014 61
114 114
11112 112
100 1031g Jan 6 115 May 4
984 Feb 105 Nov
112 114
11312 114
113 11314 1,800 6% preferred
127 127
10 118 Jan 21 12918May 11 1084 Jan 12014 Nov
12614 12614 1265* 12633 127 12712
700 7% preferred
---147% 148 *1471 150 *147% 150
100 134 Jan 7 150 May 41 125 Jan 13514 Nov
14718 147% 1471 14718
400 8% preferred
10934 1093 *1091 110 *11038 112
10934 11014 1095, 10934
600 Pub Serv Else & Gee Did-100 108 Mar 8 11012 Apr 25 102 Jan 11012 Dec
7384 Aug 8484 Dee
8833 902 8712 8833 8734 89
89
8934 89
891 15,700 Pullman Company new No par 794 Feb 21 94 May 15
*3012 31
3018 3012 3033 3232 32% 3434 3318 3378 8.700 Punta Alegre Sugar
50 2812 Feb 17 3478 Jan 3
27 Oct 467s Jan
24
247
24
25 19 Feb 1 2712 Jan 5
25 Oct 3312 Max
2333 24
2412 2333 2412 23% 24
13,800 Pure 011 (The)
11534 11534 1135* 1135* 11312 11312 11312 11412 *11312 115
100 108 Mar 15 11524May 21 11133 Jan 11512 Dee
110 8% preferred
838 85
7512 Apr 14 8978Nlay 7
82
838 8218 83
8233 83
8178 8218 6,200 Purity Bakeries new
Claes B
No par
171 Apr 12 II84 -.Km i6876 Nov;
ffi" *Ho; ill"
*HA 113 *Holz 1-1110
99;
6 4 Apn
ja r 1 11512May 11
Preferred new
179 186
17238 18012 17212 188
183 19434 19314 20412 255,900 Radio Corp of Amer....No par 8514 Feb 20' 211 May 14 ill; -iiiir Rif- Nov
5
8
5712 5712 *57
59
57
57
58
58 .5734 59
50 5412 Ja 4 60 May 16
49 May 57 AP/
300 Preferred
2612 27
27
2812 2812 288 2814 2812 8.700 Real Silk Hosiery
2818 28
10 2472 Jan 17 3014 Jan 26
2012 Nov 49 Mar
*9212 9234 9212 925* 9212 9212 *9212 93
*9212 93
100 84 Feb 7 9412 Feb 21
30 Preferred
80 June 99 Dee
1034 11
105* 1114 108 1114 1114 1112 1184 12
3,500 Reis(Robt)& Co
NO par
&Is July
9 June
512 Feb 23 13 May 15
2934 305* 288, 292
2834 3138 312 328 3134 3312 90,600 Remington-Rand
No par 2318 Jan 20 3312May 25
2012 Nov CM Dee
*9512 96
9534 9534 9534 9534 96
96
96
96
100 93 Jan 16 96 Feb 28
BOO First preferred
8711 Nov 10213 Ape
99
99
*95 100 *95
99
*98
99
99
99
200 Second preferred
100 93 Apr 19 100 Jan 24
90 Oct 110 Apr
2732 28
264 274 27
2784 27
287* 2912 3024 153,300 Reo Motor Car
10 2212 Jan 21 3014May 25
2512 Dec 2678 Dee
5812 597
5712 5838 58
587
59
6034 6014 61
12,300 Republic Iron & Steel
100 58 Feb 17 6914 Feb 71 53 Oat 757s Mar
10618 10618 *106 107 *10512 107
10612 1061 *10512 107
200 Preferred
100 105 Jan 3 112 Feb 6
9658 Jan 106 MU
1238 1278 1134 1214 1134 121* 12
1212 12
1238 24,100 Reznolds Spring
No par
4 Feb 13 Dee
814 Feb 18 1482May 8
13014 13078 13012 13212 132 133% 132 133
13012 131
18,800 Reynolds(RJ) Tob Class B 25 128 Apr 24 16118 Jai 3 9818 Feb 162 1300
473 493
4934 52
4714 48% 4812 4914 4814 49
77.000 Richfield 011 of California-25 2312 Feb 17 53 May 15 I 2512 Dec 2838 Dee
21438 21534 204 211
20412 20614 214 214
214 215
74 Jan 194 0011
1.500 Ronda Insurance Co
25 163 Jan 10 233 May 4
5134 52% 504 5112 517 5278 52
52
52% 5234 7,900 Royal Dutch Co(NY shares)- 4458 Jan 20 55 May 7
4414 July 6412 Feb
4412 4512 4438 45
4512 48
45
4533 4412 4634 24,700 St Joseph Lead
36 May 4372 Mar
10 37 Mar 16 49 May 18
821 83
8084
7833 8112 7912
81
81
81
6312 Oct 7212 Mar
8334 2,600 Savage Arms Corporation_100 6058 Jan 12 88 May 15
314 334
37
312 4
334 4%
3/4 Jan
4
418May 23
1 June
312 418 31,600 Seneca Copper
2 Jan 18
No par
63 63
6212 63
6234 64
62% 63
6212 63
3,000 Shubert Theatre Corp-No par 5912Mar 5 6934 Jan 9 55 Aug 7478 Nov
60
607o 5918 6014 5834 60
6012 6134 63 64
47 Jan 57 Sept
42,90 Schulte Retail Siorca.--No Par 4982 Feb 18 6712 Apr 14
122 122
121 121
122 122
122 122
12278 1228
7
Preferred
100 11913 Jan 31 129 Apt 11 11614 Jan 123 Aug
•1238 1314 *1238 1234 *1238 13
*1238 1234 124 1284
84 Sept 1518 Dec
30 Seagrave Corp
No par 10 Feb 18 1414 Jan 3
1015* 1037
998 1011 100 10312 10312 10434 105 10778 200,500 Sears, Roebuck& Co new NOpar 8218 Jan 16 1101:Mar 27
51 Jan 9112 Dec
99 100
951 99
98 1007 101 102% 101 10233 6.50 Shatuck (F
5616 Jan 10112 Oct
No par 8012 Feb 17 10912May 4
*45
47
•45
47
*45
47
*4534 47
4118 Oct 4778 Feb
*4534 47
Shell Transport & Trading _£2 3988 Jan 24 47 May 4
2734 2834 2712 284 2718 275* 27% 2718 2738 28
2452 Oct 314 Feb
35,300 Shell Union 011
No par 2314 Feb 8 31 Apr 30
2278 22
22
22
2218 23
22
2214 2212 2212 5,500 Simms Petroleum
144 July 2638 Dee
10 184 Feb 20 26 Mar 30
6534 6612 64
65
6312 6538 6434 66
6512 67,
8 16,300 Simmons Co
334 Jan 644 Dec
584 Nar 2 73 Apr 4
No pa
2618 28
2412 2613 247 261
2612 2714 265* 2714 141,700 Sinclair Cons Oil Corp-No 1811
15 Oct 2218 Jan
1732 Feb 20 3014 Apr 30
108 10812 10878 1087 *10738 10836 *10738 10838 10812 10878
97 Jan 10412 Deo
700 Preferred
100 10212 Jan 4 10912 Apr 26
3012 3134 308 3034 3014 3034 3012 3114 3034 31
244 June 3716 Feb
11,000 Skelly 011 Co
25 25 Feb 15 34 Apt 30
11712 11712 *1161 118
*11618 118 *116 118 *116 118
100 Slose-Sheffield Steel & Iron 100 116 May 3 134 Feb 6 1104 Nov 13414 Apr
1634 17% 1612 1884 1633 167
17
1732 17% 1933 9,800 Snider Packing
114 June 1614 July
124 Jan 6 20 Apr 30
No Pa
4614 4614 462 465* 46% 4612 4633 465* 49
51
44 Nov
5214 July
44 Jan 5 60 Jan 11
1,100 Preferred
No pa
4512 4733 451 4612 457 48% 4812 4938 4818 4914 104,600 So Porto Rico Sus new _No pa
337s Aug 6211s May
3211 Feb 18 494May 24
*140 141
140 140
140 140 •140 145
140 140
210 Preferred
100 133 Feb 1 140 May 7 11812 Mar 137 Nov
50% 518
4918 50
4912 507k 4933 5038 497 5012 19,700 Southern Calif Edison
8152 Jan 65 Dee
25 434 Jan 5 5414May 4
5712 60
5434 56
60
5512 5812 58
57% 585* 44,300 Southern Dairies al A-No Po
60 May 21
244 Jan 2
15 May Ws Jan
25
26
24
2434 2312 2412 241 25
2312 2434 8,700 Class B
Ms Oct 20 Jan
9 Jan 23 30 Apr 23
NO
VOT
115 115 *115 120
115 115 *115 120 *115 120
60 Spalding Bros 1111 Pre' ----100 109 Jan 7 120 Apr 3 103 Jan 11211 Nov
1514 1514 1514 1514 1512 15
•1518 18
15
181
430 Spear & Co
12 Jan 16 20 Feb 29
No pa
Ps MAY 16 Dee
*87
88
87
87
*87
8812 *88
8812 8512 88
180 Preferred
73 Feb 88 Dee
100 79 Feb 25 9218 Feb 29
365 3733 35% 363
35
3714 3712 3834 3714 3814 30,800 Spicer Mfg Co
2012 Jan 2878 May
2312 Jan 12 4214May 11
No pa
*11012 111 *1101 111 *11012 111 .11012 111
11012 1101
10 Preferred
100 110 Apr 11 113 May 7 104 Feb 11112 Nov
28
281*
2912 29'z
*2834 2912 *29
30
29
29
500 Stand Comm Tobacco_No par 28 May 22 3712 Mar 6
694 7114 6833 6912 68% 694 89% 7014 69
70
17,200 Standard Gas & El Co_No par 5772 Jan 1
7414May 8 IC -iiii Ws;June
*7114 7113 7138 7112 71% 7112 71
71
*71
72
1.000 Preferred
so 65 Jan 3 7112May 16 574 Jan 6612 Nov
11534 12038 11312 11714 117 11914 11714 11814 11614 1171
7,200 Standard Milling
7014 Jan 1044 Dee
100 100 Jan 5 127 Apr 20
*107 10778 15107 10778 107 107 *107 1078 *107 1077
10 Preferred
84 Jan 103 Dee
100 1004 Jan 3 112 Apr 23
5812 5912 591 5938 594 604 14,200 Standard 00 of Cal newNopo
582 6038 5812 59
5088 Apr 6014 Jan
6378
Apr
30
53
Feb
20
443 x
@FedFRASER