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Me
oniturrrial
VOL. 127.
filiattria
ffrontrie
SATURDAY, NOVEMBER 31928.
financial Thronicit
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The Financial Situation.
Widespread protest ought to be made against further wage increases on the railroads of the United
States, a highly paid class of labor, and particularly
against wage increases on the Western roads. These
Western railroads with few exceptions are in a pitiable state, inasmuch as they have never been able
to earn the rate of return on the investment to which
they are entitled under the transportation act of
/
4%, while the actual return for the
1920, which is 53
calendar year 1927 was no more than 3.92%, and the
Inter-State Commerce Commission feels bound by
the Hoch-Smith joint resolution and therefore considers itself unable to grant the necessary relief in
the shape of higher transportation charges. The
Western farmer, in turn, finds himself in a most unfortunate plight, owing to the fact that agricultural
prices have declined much faster than the general
range of commodity values and than the decline in
the cost of living. In the Presidential contest which
is now drawing to a close the Presidential candidates
of both of the great political parties profess the deepest solicitude for him and the platforms of both parties contain special planks deploring the agricultural situation and promising correction by legislative action of some kind.
We are prompted to these reflections by the fact
that the Emergency Board appointed by President
Coolidge, under the provisions of the Railway Labor
Act, to adjust the wage dispute between the Western carriers and their conductors and trainmen, has
made its report to the President the present week
and recommends a wage increase of 6%70 without
2% increase in the
change in working rules or a 71/
event that the employees shall consent to a change
in the rules. The controversy is one which has long
been pending and the recommendations of the Emer-
NO. 3306.
gency Board virtually sustain the position of the
carriers who, to avoid trouble with the employees
and a resulting strike, had proposed increases like
those here suggested. That, however, does not alter
the fact that the increase proposed is without merit
or justification and will impose a burden upon these
carriers which is beyond their capacity to bear
without either impairing their efficiency or their
credit and perhaps both. The result in the end
can only be that transportation rates will have to
be raised, notwithstanding the Hoch-Smith resolution, simply to maintain these Western railroads as
going concerns so that they may render the efficient
transportation service without which no community
of any great size can long exist.
What reasons does the Emergency Board, with the
distinguished James R. Garfield at its head, advance for suggesting the 61/
2% increase or the alternative 71/
2% increase? None whatever except that
other railroad employees have had a similar increase
and that the class of train hands here concerned have
been granted a corresponding increase in other railroad territory. The Emergency Board says that in
the Eastern district conductors and trainmen obtained an increase of 71/
2% by arbitration in the
latter part of 1926; the firemen received a like increase by mutual agreement through mediation
early in 1927 and the engineers by the same proce2% in August. In
dure received an advance of 71/
the Southeastern district conductors and trainmen
2% by mediation in 1927;
obtained an increase of 71/
engineers obtained an increase of 61/
2% by arbitration and the firemen an increase of approximately
7% also by arbitration.
In the Western district, the district in the present
controversy, there was, we are told, greater delay in
arriving at settlements. The conductors and train
men made demands for increases early in 1926. The
matter dragged along until Feb. 23 1927 *hen their
demands were defined in proposals which were declined by the carriers on Feb. 27 1927, largely on
the ground that its acceptance would "seriously impair" their credit; "and indeed be fatal to the credit
of some of those lines now barely earning operating
expenses and fixed charges." It was added that "to
grant the increases would certainly require curtailment of improvements, essential to the development
of the property in the interest of the employees as
well as the owners." The Emergency Board goes
on to say that "subsequently, on April 27 1927 wage
demands of the conductors and trainmen of the
Western district larger than those mentioned above,
were brought before a Board of Arbitration which
rendered an adverse decision on June 25, refusing
an increase except to yardmen. The demands of
the firemen in the Western district were submitted
to arbitration resulting in an increase of 61/
2% fi-
2410
FINANCIAL CHRONICLE
nally allowed in June, 1928; the engineers were then
granted a similar increase, effective May 1 1928."
After giving the above-quoted narrative, the Emergency Board makes the following observation: "As
a result of these various negotiations and settle
ments, we find that the several classes of employees
in the three districts have received an increase of
pay, with the exception of the conductors and trainmen, in the Western district, who are parties to the
present dispute. With approximate uniformity the
increases made in the foregoing negotiations ranged
2%."
1
2% to 7/
from 61/
The Emergency Board's decision rests absolutely
on the single circumstance that wage increases have
been common elsewhere. But what is to be the cost,
and who will foot the bill? We have already seen
that the railroads will not be able to do so, nor
will the farming community upon which the railroads are obliged to rely for their sustenance. As
regards the aggregate cost, there is not a single reference to it in the lengthy communication which
the Board addressed to the President and which occupies several columns in the "United States Daily"
where the communication appears in full. Yet the
cost, it is known, will be large. The Emergency
Board tells us that increases in pay are demanded
for conductors, baggagemen, brakemen, flagmen and
yardmen in both passenger and freight service.
The Board says that the two organizations appearing before the Board represented approximately 42,000 men—conductors, baggagemen and brakemen—
in both passenger and freight service, and approximately 24,000 yardmen. The total railroad mileage
of the United States is 237,054 and the mileage involved in the present controversy is 138,672. It will
be seen that over half of the railroad mileage of the
country is involved.
We cite these figures simply to show that the
cost to the railroads of the increase proposed is not
a matter of minor consequence. Yet, as already
stated, no mention of the amount involved is made
in the communication to President Coolidge. The
test of ability to pay is nowhere applied. But that,
after all, is the vital consideration, of vastly more
importance even than the question of the merit of
any increase at all. The railroads in this respect are
no different from the private individual. Supposing
the merit incontestible, if an individual is unable to
pay, that settles the matter, even if his neighbor,
more favorably circumstanced, can afford to pay the
increase without demur. The rule ought to be the
same in the case of the railroads. If the ability to
pay does not exist and if the community which the
railroads serve cannot bear the burden of higher
transportation charges, which is incontrovertibly
the case in the present instance, that ought to suffice, and rule out any increase.
Entirely apart from this, however, merit does not
appear to rest at all on the side of these conductors
and trainmen. The Federal Board of Mediation,
created under the Watson-Parker Railroad Act,
which, as already stated, had the whole matter under consideration in June, 1927, did not hesitate
to speak plainly on that point in deciding adversely
to the contentions of these classes of train hands.
This board, after pointing out that "the strongest
argument advanced by the Order of Railway Conductors and the Brotherhood of Railroad Trainmen
for an increase of wages was the recent increase of
2% granted to these same classes in Eastern and
1
7/
(VOL. 127.
Southeastern territory," went on to say that "the
record shows that the actual earnings of trainmen
were more in the Western district than in either the
Eastern or the Southeastern district before the
2% increases in those districts went into effect.
1
7/
The average annual earning of train service employees in the Western district in 1925 was 7.4%
more than for the same year in the Eastern district
and 6.5% more than for the same year in the Southeastern district" Not only that, but as the railroads
pointed out at the time, lower living costs in the
West than in the East constitute one other advantage which these Western train hands enjoy.
The Mediation Board of last year also went into
the question of what the cost would be to the rail2% increase and whether
1
roads of granting the 7/
the revenues of the carriers were such that they
could reasonably be asked to assume the added burden. They found themselves obliged to answer this
question emphatically in the negative, and. that
surely is a consideration that should be plainly kept
in mind in contemplating the recommendations just
made by the Board of Arbitration in favor of such
an increase. The Mediation Board said on this point
that "to grant this application of the trainmen and
conductors, the carriers contend, would ultimately
cost $83,000,000 per year in increased wages." The
Board had already found that the carriers in the
Western district had earned in 1926 only about 4%.
Accordingly after noting that the higher wages
would add $83,000,000 to the annual payroll of these
Western roads, it followed with the further statement that "the effect would be to reduce the net
earnings of the Western railroads available for betterments and the like to below 3%." Let the reader
not overlook the fact that the increase proposed will
swell railroad operating cost ultimately $83,000,000
a year.
The Mediation Board in deciding adversely to the
claims of these employees had before it as the latest
figures the returns of the Inter-State Commerce
Commission for the calendar year 1926. Of course,
the figures are now available for the calendar year
1927. But these do not change the results and the
conclusions in the slightest degree. The Bureau of
Railway Economics at Washington summarized the
figures last February and found that Class I railroads in 1927 had a net operating income of $407,882,000, which was a return of only 3.92% on their
property investment. Now deduct from that $83,000,000 as the ultimate cost per year to the carriers
2% increase in wages, and the net
1
of the proposed 7/
railway operating income is reduced from $407,882,000 to roughly $325,000,000 and the return on the
property investment cut from 3.92% to approximate8%, whereas under the Transportation
ly only 31/
4%.
/
Act of 1920 they are unmistakably entitled to 53
This has reference to the Western roads as whole.
The roads in the Northwest have long been notoriously doing worse than the roads in the Southwest
which have been helped along by the oil developments in that part of the country, while many individual roads in both the Northwest and the Southwest have been barely able to earn their fixed
charges, though the roads in the Northwest have
within the last 12 months been able to improve their
situation slightly as a result of two bounteous harvests of spring wheat in succession.
But with the whole body of roads earning collec8%, hardly much more than
tively no more than 31/
Nov. 3 1928.]
FINANCIAL CHRONICLE
the sum that should be set aside regularly out of
earnings for improvements and betterments which
under a conservative railroad administration would
not ordinarily be considered a legitimate charge
against capital, what may be expected as the outcome. Will not the inevitable result be, as said
above, that the Commerce Commission will be forced
to permit the carriers to increase their transportation charges so as to continue in existence? But
will that be fair and just to the agricultural classes,
already in a most unfortunate condition?
Press advices tell us that the conductors and
trainmen are no better satisfied with the recommendations of the Emergency Board than they were
when the same proposition came from the railroads,
and that they may decide to strike after all, to prevent which the offer of the increase named was originally made. It seems to us that this is one of the
occasions, when such an obstreperous body of men,
already in enjoyment of a high scale of pay, should
be allowed to strike. The issue here is simply whether one class of the community shall be allowed to
gain an advantage at the expense of another or of
the entire community. And it is time that public
opinion should be tested on that,point. A strike will
obviously involve much inconvenience and some loss,
direct and indirect, to the entire population of the
country. The inconvenience should be gladly borne.
To our mind anything that involves at this time an
additional burden upon the farming classes, whether
in the shape of higher transportation charges or anything else, is little short of a crime.
No one can view the steadily mounting figures of
brokers' loans, week after week, without feeling a
degree of concern that closely approaches alarm.
This week's return of the Federal Reserve Banks is
like all preceding returns in recording further expansion, only that the movement has now taken a
crescendo form and the new additions are every
week becoming larger. Not only does each succeeding total, as it comes to hand, establish a new high
record in all time, but the volume of the additions
are themselves startling in magnitude. This week
the harther addition has been no less than $134,871,000. The previous week's increase had been deemed
large and yet reached no more than $107,903,000.
And the same remark is to be made with reference
to the increase in the week preceding, which was
$74,507,000, and that of the week before, which was
no more than $19,905,000. For ten successive weeks
the totals have been rising and the grand aggregate
of these loans now at $4,907,164,000 for Oct. 31 compares with $4,201,131,000 Aug. 22, disclosing a further expansion for the ten weeks in the prodigious
sum of $706,033,000. As compared with the corresponding date a year ago, namely, Nov. 2, when the
total, already swollen to an inordinate degree, was
$3,371,705,000, the increase reaches no less than $1,535,459,000. Unfortunately, too, the bulk of the
further increase in this latest week, as in most of the
weeks preceding, occurred in the most objectionable
form of loans, namely, those "for account of others."
As a matter of fact, however, further increases appear this time under the other heads, too. In the
loans to brokers and dealers (secured by stocks and
bonds) made by the 45 reporting member banks in
New York City for their own account there has been
an increase from $957,397,000 Oct. 24 to $1,020,710,000; the loans for account of out-of-town banks
2411
stand at $1,732,177,000 against $1,736,811,000 a week
ago while the loans for account of others have run
up from $2,078,085,000 to $2,154,277,000. A year
ago on Nov. 2 these loans for account of others were
already beginning to expand rapidly, but nevertheless at that time were only $1,009,389,000.
The Stock Exchange figures, which are only issued
monthly, have also appeared the present week, being made public late yesterday afternoon. And they
are of the same character as the Federal Reserve
figures, only that they deal with even larger totals,
the Stock Exchange compilation being more comprehensive than that compiled by the Federal Reserve Bank of New York. The Federal Reserve figures for the latest date, we have seen, are now closely approaching the five billion dollar mark. The
Stock Exchange figures, on the other hand, are getting near the six billion dollar mark. The Stock
Exchange statement shows "total net loans by New
York Stock Exchange members on collateral, contracted for and carried in New York as of the close
of business Oct. 31 1928" of $5,879,781,062 as against
$5,513,639,685 on Sept. 30, showing an increase for
the month of $366,141,377, and this follows an increase of $462,202,280 during September, making
the total increase for the two months ho less than
$828,343,657. As against $5,879,721,002 Oct. 31 1928
the aggregate on Oct. 31 1927 was $3,946,137,374
and on Oct. 31 1926 only $3,111,176,925.
Unfortunately, too, the Federal Reserve Banks by
their policy are furthering and promoting the course
of stock speculation. They are steadily adding to
the volume of Reserve credit in use. This week the
member banks have again increased their borrowings at the Federal Reserve Banks, after having
shown some contraction in the two weeks preceding.
This appears from the fact that the volume of discounted bills held by the 12 Reserve institutions is
reported at $932,271,000 Oct. 31 against $911,927,000
Oct. 24. At the present amount of $932,271,000,
comparison is with only $379,221,000 a year ago. As
if this direct borrowing of the member banks were
not enough, the Federal Reserve Banks have been
steadily enlarging their purchases of acceptances
in the open market, thereby thrusting more Reserve
credit into use. During the past week, the Reserve
Banks have further increased their holdings of acceptances in amount of $38,898,000, after a long series of antecedent increases. The holdings of U. S.
Government securities are a little lower at $227,099,000 against $231,047,000 a week ago. The result
altogether is that there is now a total of Reserve
credit in use (as represented by the bill and security
holdings) of $1,603,476,000, against $1,548,182,000
a week ago and comparing with $1,240,773,000 a
year ago.
The acceptance holdings at $440,376,000 Oct. 31,
compare with only $161,847,000 on Aug. 8, being an
addition of $278,529,000, while during the same interval the holdings of U. S. Government securities
have risen from $207,868,000 to $227,099,000, making
a combined addition of $297,760,000. This is the
amount of Reserve credit forcibly put into use
through the open market operations of the Reserve
Banks, and it comes at a time when stock speculation is rife as never before. It is hence a process
of doubtful expediency, to say the least. The Reserve authorities may nurse the belief that through
these open market operations, conducted on such a
large : cale—the present year through the purchase
2412
FINANCIAL CHRONICLE
[voL. 127.
Many of the oil stocks were also higher. Sinclair
Consolidated Oil was the most active of all and
closed at 42 yesterday against 35% the previous
Friday. Atlantic Refining closed at 220 against
8; Standard
221; Marland Oil at 457
8 against 431/
/
/8 against 47; Standard Oil of
Oil of N. J. at 477
/8
N. Y. at 357
8 against 36, and Pure Oil at 267
/
8. The motor stocks were less prominent
The stock market has continued its upward course, against 271/
though in a more moderate way than in preceding than heretofore, and yet there was considerable acweeks. After the big break on Friday of last week tivity in several of them. General Motors closed
when the market experienced all of a sudden a very yesterday at 221% against 216 the previous Friday;
pronounced sinking spell, a rally all round occurred Chrysler closed at 125 against 127; Studebaker at
at the half-day session on Saturday, with advances 75% against 76; Packard at 93% against 94; Nash
4 against 82,
on such a large scale as to wipe out most of the at 90% against 91%; Hudson at 833
losses of the preceding day. The recovery made fur- and Hupp at 72 against 721%. In the rubber group
ther progress on Monday, the market resuming its there was some activity in U. S. Rubber on the news
old time stride and registering further large and that the present common shares of $100 par value
general advances. On Tuesday and Wednesday the are to be exchanged for new shares having no par.
course of prices was again downward on what was The stock closed yesterday at 41% against 38% the
termed pre-election selling, though special stocks previous Friday and the preferred at 70% against
like International Nickel and some of the copper 68; Goodyear Tire & Rubber closed at 79% against
group pursued an independent course and registered 76%, and B. F. Goodrich at 81 against 80%. The
further sharp advances. On Thursday the tone was steel stocks did not play a very conspicuous part in
again extremely confident and prices swung up- the dealings, although U. S. Steel was as prominent
ward. On. Friday the market retained its firm as heretofore, and followed the course of the gem
undertone, but there was nevertheless extensive sell- ereel market up and down. It closed yesterday at 161
ing with some demonstrations by bearish operators against 159% the previous Friday; Bethlehem Steel
based on the further tremendous expansion shown closed at 65% against 65%; Republic Iron & Steel
in brokers' loans in the Federal Reserve statement at 76% against 78; Inland Steel at 70 against 70%,
• and Ludlum Steel at 82 against 79.
issued Thursday evening.
that
seebeen
has
prices
altogether
The result
In the high-priced specialties the fluctuations
sawed up and down a good deal and are irregularly were more or less irregular following the course of
changed for the week. Trading has been on a dimin- the general market and the most of them are higher
ished scale, dealings falling off whenever prices than a week ago. International Nickel was perhaps
turned downward. At the half-day session last Sat- the most spectacular in its movements and continurday the transactions aggregated 1,732,710 shares; ued its advance. It closed yesterday at 189% against
on Monday they were 3,770,570 shares; on Tuesday 171% the previous Friday; Montgomery Ward &
3,483,770 Shares; on Wednesday 3,629,240 shares; Co. closed at 343 against 335%; Radio Corporation
on Thursday 3,585,610 shares, and on Friday 3,488,- of America at 2281/
2 against 225%; Sears, Roebuck
8; American Can at 107%
000 shares. On the New York Curb Exchange the & Co. at 1531/
8 against 1541/
total of the sales was 481,600 shares on Saturday, against 107%; Victor Talking Machine at 121%
1,048,400 shares on Monday, 877,100 shares on Tues- against 134; Reynolds Tobacco new class B at 148%
day, 833,700 shares on Wednesday, 924,400 shares against 146; Allied Chemical & Dye at 230 against
2211%; Union Carbon & Carbide at 191 against 191;
on Thursday and 949,400 shares on Friday.
The copper group again displayed great strength, Murray Corp. at 111 against 106%; American Exeven when the general market evinced a reactionary press at 253 against 245; Warner Bros. Pictures at
8
/
tendency. Kennecott Copper closed yesterday at 121% against 110%; American Tel. & Tel. at 1847
123 against 120 on Friday of last week; Anaconda against 1791/
8; General Electric at 167 against 167;
Copper closed at 88% against 87; Greene Cananea National Dairy at 112% against 115; Best & Co. at
8; R. H. Macy at 173% against
/
8 against 957
at 135% against 135; Calumet & Hecla at 42% 981/
8; Cerro de Pasco at 100% against 102; 166%, and Western Union Telegraph at 187%
/
against 427
8 against 581/
/
8; Granby Copper against 184.
Chile Copper at 587
at 77% against 73; American Smelting & Refining
In the railroad list Union Pacific common made
at 265 against 265% and U. S. Smelting & Refining a new high record for the year and so did St. Louis
at 57 against 55. The following copper stocks es- Southwestern, but this group of stocks was othertablished new high records for the year, namely: wise without any distinctive feature, the price
Amer. Smelt. & Rfg., Anaconda Copper, Granby changes for the week being irregular. Rock Island
Consol. Mines, Kennecott Copper and U. S. Smelt- closed at 132 against 1321% the previous Friday;
ing & Rfg. In the general list, the new high records Kansas City'Southern at 681/
8 against 68%; St.
were far less numerous than in most previous weeks Louis Southwestern at 117% against 116%; St.
and yet there has been a goodly number of them, Louis-San Francisco at 115% against 117; Missouriincluding among others the following:
Pacific at 68 against 701/
4; Missouri-Kansas-Texas
International Nickel
American Express
at
45%
against
45%;
Wabash
at bid 76 against 76;
Jordan Motor
American Radiator
Atchison at 190 against 1908%; Texas & Pacific at
Roister Radio
American Type Founders
Life Savers
American Woolen
bid 181 against 180; Southern Pacific at 122%
Marland 011
Best Sr Co.
Phillips Petroleum
Brooklyn Edison
against 121; Union Pacific at 207% against 202;
Pillsbury Flour Mills
Burns Brothers
Canadian Pacific at 2181% against 215%; Great
Radio Corp. of America
Bush Terminal
Shell Union Oil
Exchange Buffet
Northern at 100% against 100%; Northern Pacific
Sinclair Consolidated 011
First National Stores
at 100 against 100%; Milwaukee & St. Paul at 497
Western Union Telegraph
General Gas & Electric
8
/
Westinghouse Elec. dc Mfg.
Heime (G. W.)
against 501/
8; New York Central at 173 against
International Cement
of acceptances and last year through the purchase of
Government securities—are aiding the agricultural
sections of the country. The truth is, however, that
they are simply adding fuel to the speculation on
the Stock Exchange, which is now passing all
bounds.
•
Nov. 3 1928.]
FINANCIAL CHRONICLE
2413
Payments, hurried to London and Paris earlier in
October for consultations with leading members of
the British and French Governments and with
prominent international bankers. On. his return to
Berlin, October 25, Mr. Gilbert conferred with
Chancellor Mueller and the German Ministers of
characterized
declining
prices
and
markets
Dull
most of the trading at the important European stock Finance and Economics. The German Government
exchanges this week, the combined influence of thereafter lost no time hi taking official action
month-end settlements and a good deal of political toward the formation of the new commission. The
uncertainty causing much selling of securities. In- Ambassadors of the Reich in London, Paris, Rome,
terest in London and Paris flagged still further on Brussels and Tokio were instructed last Saturday
the approach of the All Saints Day holiday, Thurs- to present to the respective Governments to which
day, which was observed on both these exchanges, they are accredited a formal proposal for the calling
although Berlin continued trading. The London of a "commission of independent experts." WilStock Exchange opened the week in lifeless fashion helmstrasse further instructed her plenipotentiaries
with buying orders virtually absent. Mond Nickel to put out feelers regarding the technical questions
shares dropped sharply in the initial session of the involved in forming the commission, such as its comweek, and there were declines also in Marconi, Dun- position, the place and date of meeting, and the
lop Rubber, Courtaulds and Celanese issues. Gilt program for its members. Germany insists, a Berlin
edged securities were steady, while some foreign dispatch to the New York "Times" reported, that
issues made substantial gains. The quiet selling of the commission must be purely civilian in character,
stocks continued Tuesday, causing a slight general like that of the Dawes Plan. The chief reason for
lowering of quotations. Mond Nickel recovered this attitude was said to be a German conviction
fractionally and one or two industrials also resisted that the participation of American experts can only
the general trend. The liquidation was renewed be obtained if politics is avoided.
Officials of the Berlin Government are said to
Wednesday morning, but in the afternoon there was
the view that Germany is obliged to act
hold
number
a
pressure
and
of
selling
the
a relaxation
so as to forestall any possible accusation
promptly
The
slight
shares
a
extent.
to
improved
leading
of
opening yesterday was irregular, but the principal that she was at fault on account of her delays, should
price changes during the day were to higher levels. the negotiations fail to materialize into a solution
Rubber shares were unaffected by the removal of of the problem. Although German opinion would
export restrictions. The gilt-edged division was not venture a detailed forecast of the solution of
the reparations problem, it was considered that the
quiet with foreign securities steady.
on
weak
Monday and American market could not readily absorb the GerThe Paris Bourse opened
in
the
improvement
slight
only
course
of the man railway bonds to their total amount of 25,000,showed
the
with
only
was
000,000 marks (about $6,250,000,000) without caussemblance
limited,
Trading
clay.
in
oil
the
ing their price to sink 25 or 30% and probably
appearing
copper
noted
and
animation
of
groups. There was every expectation of very re- clogging the market to such an extent that a large
stricted trading because of threatened difficulties block would remain unsold. In these conditions, it
in the Cabinet over a religious matter, and these was held that the new plan must take the form of
expectations were borne out in the sessions on suc- annuities, as under the present Dawes plan, but
ceeding days. Prices declined generally Tuesday with lower annual payments. In Berlin financial
and early Wednesday, with some recovery taking circles .it was contended that if Germany's reparaplace after the weak opening of the latter day. No tions payments were adjusted merely to the Amerireal strength was displayed, however, notwithstand- can debt of the Allies, her annuities would begin at
ing avoidance of the Cabinet difficulties. The about 860,000,000 marks and rise to 1,710,000,000,
Berlin Boerse showed more activity than other Euro- the latter being much lower than the present maxipean markets in the early part of the week, with a mum annuity under the Dawes plan, of 2,500,000,000
confident tone maintained on the opening day. The marks. If reconstruction expenditure by France
market Tuesday, however, was under the influence and the other Allies were included, the claim on
of a precipitous plunge in Brandenburg Lumber Germany would total about 25,000,000,000 marks,
shares from 220 to 40 within the space of an hour. it was said, in which case Germany's annuity would
This had a depressing effect, from which the market begin at 2,360,000,000, or only slightly less than the
on the whole recovered only slightly toward the present annuity, and would rise to 3,210,000,000
close. A threatened lock-out of 250,000 metal work- marks. Germany in that case, it was declared,
ers in the Ruhr district caused unsettlement would be worse off than under the present Dawes
Wednesday, and when the lock-out actually took system. The Reich has two strong points in any
place Thursday, the market declined generally. consideration of the matter, a "Times" dispatch of
Banks are said to have supported the market when 'October 27 pointed out. These are firstly, the
the industrial development became known. Toward transfer protection which the Dawes plan now guarthe close a firmer tone was noticeable and some antees to her currency and which she will not easily
waive, and secondly, the provision in the Versailles
stocks fully regained their early losses.
treaty that reparations payments must not be
Rapid strides were taken the past week toward stretched over a longer period than 30 years.
The position of France in the projected conferthe formation of a commission of experts who, in
accordance with the plan formulated at the six- ence was again made abundantly clear by Premier
power Geneva Conference on September 16, will at- Raymond Poincaie in a speech at Caen,last Sunday,
tempt the definite fixing of the amount of Germany's in which he repeated the demand made at Chambery
reparations debt and its method of payment. S. recently that France receive from Germany enough
Parker Gilbert, the Agent-General for Reparations to pay her war debts and reconstruction costs. "I
173%; Baltimore & Ohio at 111% against 111y4;
New York-Chicago-St. Louis at 1.24y2 against 125
2 against
1
bid and Delaware & Hudson at bid 187/
185%.
2414
FINANCIAL CHRONICLE
said at Chambery, and take pleasure in repeating
it here," he remarked, "that all we demand is the
loyal execution of treaties and diplomatic accordsWe are ready to listen to any requests that may
be addressed to us, but in any negotiations concerning our claims on Germany we have the right neither
to abandon our guarantees lightly nor to accept
any combination which will not have the effect of
assuring to Us both the means to pay entirely our
own debts and a fair indemnity for our reparations.
That position M. Briand took at Geneva in the name
of the whole Government. That is the position we
have maintained and which we will maintain." In
commenting on this statement, Edwin L. James,
Paris correspondent of the New York "Times," remarked that one of the conditions laid down at
Geneva in September was that Germany must ask
for the appointment of a commission of experts to
reconsider reparations.
"It is true," the correspondent added,"that France
has agreed to hasten evacuation of the Rhineland
if the Germans lend themselves to a new reparations
plan which M. Poincare can regard as fair, and also
agree to international supervision of Rhineland
neutrality. 'But in principle the coming negotiations must represent a request by Germany, and it
will be up to Germany technically to make suggestions for changing the system under which the
Allies are now paid by right. As for France, she
will accept no less than annuities which will pay
what she owes England and America, plus annuities
to take care of that part of the domestic French
debt created for repair of war damages of a material nature, which she will place at between
70,000,000,000 francs ($2,800,000,000) and 90,000,000,000 francs ($3,600,000,000). Bearing in
mind that England stands on the Balfour principle,
one gets back to the indication of about $500,000,000
annually as the new reparation payment. Germany
will be asked to pay in principal for sixty years the
$300,000,000 the Allies will pay annually to America.
If a credit operation is possible by which this period
of payment to America can be cut by twenty to
twenty-five years, then Germany's period of payment will be cut accordingly."
In accordance with the instructions from Wilhelmstrasse, Dr. von Hoesch, the German Ambassador to France, called on M. Briand, the French
Foreign Minister, at the Quai d'Orsay, Tuesday,
and laid before him the German suggestions for the
calling of the conference and the composition of the
commission. Similar suggestions were made at the
same time in the other capitals. Dispatches from
both the British and French capitals agreed that
the German emissaries appeared anxious to avoid
every appearance of taking individual initiative in
the matter. The German representatives laid emphasis on the suggestion that the members of the
commission should be financiers of international
standing, well able to represent the interests of their
respective countries, but untrammeled by official
instructions. Some difficulty was understood to
have'arisen at Paris on this point, M. Briand being
reported as holding the view that "There never are
independent experts." Ambassador von Hoesch
conferred with Premier Poincare Wednesday, regarding the constitution of the committee- "It is
understood to be the French position," a Paris dispatch of Wednesday to the New York "Times" said
"that it is entirely impracticable to have really hide-
[VoL. 127.
pendent experts, and that the experts must act in
accord with the Governments to reach a solution
having a real chance of acceptance." S. Parker
Gilbert visited Paris on the same day, with the
intention, according to a dispatch to the New York
"Herald Tribune," of adding his voice to that of the
Ambassador for the formation of a commission of
unimpeded experts. The State Department at
Washington was informed of the steps taken by
Germany, Berlin dispatches said
Several official British statements on naval construction and on understandings with other Governments were made the past week as the result of the
many English criticisms of the Anglo-French Naval
Compromise Agreement which was the subject of a
British "White Paper" and a French "Blue Book,"
early last week. Prime Minister Stanley Baldwin
declared 'before the Rritish League of Nations Union
on October 26 that Great Britain intends to go
slowly in naval construction and has no intention
of 'building in competition with the United States,
notwithstanding American rejection of the compromise agreement as a basis of discussion. Mr.
Baldwin expressed profound regret at "the temporary failure to come to an agreement with
America on naval matters," and deplored reports
from America which, he said, indicated "deep suspicion" of Great Britain in the minds of many
Americans. The Premier also asserted that the
Conservative Government has not departed from the
policy of Locarno in favor of a renewed AngloFrench entente. "We have made no new engagements," he declared. "There is no change in the
orientation of our policy. Our interests and our
inclinations alike prompt us to preserve and even
to strengthen the cordiality of our relations with
Germany as well as France. We can justly claim
that we have played some part in the better relations which now exist between France and Germany."
Mr. Baldwin also expressed gratitude to Secretary
of State Kellogg for the general pact renouncing
war as an instrument of national policy. "It gives
us," he said, "what in our private spiritual life we
should all be grateful for—a fresh start" Viscount
Grey of Fallodon also hailed the Kellogg pact in an
address at the same meeting. He believed, he said,
that the new treaty was "more serviceable to the
cause of peace than if the United States had joined
the League of Nations as a hesitant and reluctant
member." To these statements Lord Cushendun, the
Acting Foreign Secretary, added the declaration in
a speech at Dartford, Wednesday, that there was
no entente with France other than an old friendship.
To prove that the word "Entente" has no peculiar
weight in describing England's relations with
France he announced, a dispatch to the New York
"Evening Post" said, that there was an entente with
Germany as well, as the result of the Locarno pact.
"We are anxious to maintain relations of cordiality
and friendship with both these great nations," Lord
Cushendun said. "And above all, we are determined
to maintain a thorough understanding and friendly
relationship with the United States- If we succeed,
then the peace of the world is certainly assured."
Intimations contained in Paris dispatches last
week were followed by a definite statement on
October 27 that Washington had replied to proposals
Noy. 8 1928.]
FINANCIAL CHRONICLE
2415
made by the French Government last January for mercial treaty. The likelihood was also advanced
the solution of certain tariff difficulties which still that the American note will have an unsatisfactory
remained unsettled after the controversy of Novem- effect upon several important American tariff cases
her, last year. The reports were corroborated by now pending before the French Ministry of Cornthe State Department in Washington and an official merce. "It is feared," a Paris report of October 29
statement was issued on. October 30. The contro- to the New York "Times" said,"that the atmosphere
versy was originally precipitated by changes in the created by the communication will not be conducive
French tariff schedule which were clearly directed to smoothing out any tariff tangles which may arise
against certain American products. Protests were in the future. The French Government has not inmade by the United States Government and read- dicated by a single gesture its displeasure over the
justments effected by France that were acceptable situation. No official comment has been forthcomto both countries. Several related problems were, ing on the subject, nor is there likely to be any for
however, left open, one of these being the method the time being. But the exporters who claim they
of determination of French costs on goods shipped are hard hit by the attitude assumed by Washington
into this country. Under the United States tariff are not so reserved and it is believed they will use
act of 1922, costs of production are one element in their extensive influence to induce the Government
the determination of duties on some goods and to obtain satisfaction."
A summary of the American note to the French
American Treasury Department agents have usually
conducted their investigations at the point of origin. Government was issued by the State Department in
French producers raised an outcry against the pres- Washington Oct. 30, "in view of incorrect reports
ence of these agents who were alleged to be prying emanating from Paris regarding tariff questions."
into their books and trade secrets, and as a result, The summary revealed that the note was dispatched
the American agents were withdrawn from France. October 16. With reference to the French proposal
It is the contention of French exporters, according that the United States accept verification by French
to a Paris dispatch of Oct. 27 to the New York experts of the French customs declarations, the
"Times," that appraisals of French goods imported State Department summary said: "The Charge
into America have since that time been based on d'Affaires was instructed to inform the French
American production costs instead of French costs. Government that the Government of the United
This is said to have worked out to the disadvantage States, of course, has no objection to French exof the French exporters. The French Government Porters submitting to American customs agents
proposed last January that the United States Gov- documents such as those mentioned above, but that
ernment accept the sworn statements on production the Tariff act of 1922 would not permit that such
costs of specially appointed French appraisers, and documents could be received as final, since the
it is to this proposal that the American reply was American appraiser at the port of entry is charged
with determining what weight to give to particular
addressed.
Aside from the appraisal issue, French exporters documents as evidence of value for customs purhave been awaiting the results of an understanding poses." The Charge d'Affaires was also instructed
arrived at between France and the United States to point out "that there is no .authority under the
last year for a review by the United States Tariff law for transferring from the American customs
Commission of duties on French silks, textiles and authorities to other parties the power of appraise.
perfumes. The review was projected in order to meat."
The French Government was informed further
determine whether duties on these French products
the United States Government would raise no
that
be
under
the
reduced
elastic clauses of
could not
the Fordney tariff act. It was also understood objections to activities by French agents in this
that the United States would examine the possi- country on lines similar to those on which the
bilities of lifting certain sanitary, pharmaceutical French Government may authorize American Treasand agricultural restrictions which hamper the ury agents to operate in France. "It is stated in
entry of French goods into the United States. The Press dispatches from Paris," the summary said
Paris dispatch of October 27 to the "Times," recall_ further, "that American customs authorities have
ing these circumstances, remarks, "While there are been making it a practice to appraise goods on the
no surface signs of the (French) Government's in- basis of cost of production of similar goods in the
tentions, it is recalled that the temporary nature United States. This is entirely incorrect. Apparof last November's accord was accentuated at the ently these reports have reference to determination
time and that the six months it was generally sup- of 'United States value' in cases where appraisers
are unable to satisfy themselves as to value in the
posed to run have long since expired."
The State Department in Washington confirmed country from which the goods are exported to the
on October 27 that it had sent a reply to the French United States. . . . Since the French GovernGovernment, rejecting the proposals made by the ment objected to investigations of private books and
French note of last January in regard to valuations records in France by American Treasury agents,
by French appraisers. It was remarked, however, American appraisers occasionally are not able to
that the United States Government would give tenth- obtain suitable data as to foreign or export value,
live consideration to any alternative procedure that and necessarily must place some further reliance on
the French might propose and it was broadly hinted United States value. The Department of State is
that Washington desired "that the French will re- advised, however, that there is no reason to believe
quest that American agents again be sent to France." that any considerable amount of increased valuation
Further dispatches from Paris made clear that the has thereby resulted. Ordinarily foreign or export
adverse reply of the American Government precipi- values can be ascertained to the satisfaction of aptated a demand by French business circles for an praising officers." Paris dispatches of the same
early opening of trade negotiations between the two date stated that French officials were engaged in
countries with a view to reaching a permanent corn- making a detailed study of the American note.
2416
FINANCIAL CHRONICLE
Comment in the French press was restrained, it was
said, although great emphasis was laid on the fact
that America sells nearly twice as much to France
as France does to the United States.
A new arbitration treaty between the United
States and Sweden was signed at the State Department in Washington, last Saturday, by Secretary of
State Frank B. Kellogg and W. Bostrom, Swedish
Minister to the United States. The compact is
similar to the treaties recently signed between the
'United States and a number of other countries, including Albania, Austria, Czechoslovakia, Denmark,
Finland, Germany, Italy and Poland. A conciliation treaty is already in effect between the United
States and Sweden. Negotiations for additional
arbitration treaties are being conducted by State
Department officials with 21 Governments, chief
among them, Great Britain, Japan, Norway, Spain
and Yugoslavia. Expiration of many of the socalled "Root" treaties of arbitration furnished the
inspiration for the renewal of the expiring compacts
and for extension of the system of treaties to virtually all important Governments.
ProL, 127,
included the opening of several great bridges and
other public work. To the Associated Press correspondent, President Masaryk, the seventy-eight year
old "Father of Czechoslovakia," said last Sunday,
"We have advanced in almost every department of
life. Slowly but certainly, out of the chaos of the
post-war years, Czechoslovakia's industries have
been built up to a most encouraging level and have
a most promising future. We have concluded commercial treaties with all our neighbors and we are
friends with all the world. We covet nothing from
our neighbors and have tried to pattern our young
Republic after that of our great sponsor, the United
States. Our Constitution and our laws, our mode
of Government and even our business methods, follow closely those of the United States. With such
lofty ideals and principles to guide us, I think we
shall live to celebrate many more such birthdays."
Katsuji Debuchi, recently appointed Japanese
Ambassador to the United States, arrived in Washington early last week and on October 24 presented
his credentials to President Coolidge at the White
House, conveying at the same time an expression of
friendship from Emperor Hirochito. Mr. Debuchi
succeeds Tsuneo Matsudaira, who is to become Ambassador to Great Britain. The new Ambassador
has been in Washington on several previous occasions on official missions. "I am commanded by his
Majesty," he said in part, "to express the gratification with which on this first occasion of the nomination of an envoy to the United States of America
since his accession to the throne he has the opportunity of conveying to you in the most direct and
public manner his warm sentiments of friendship
and regard for the people of the United States and
for yourself personally. His Majesty charges me to
say at the same time that he entertains the sincerest
hopes that the prosperity of this great nation will
ever continue to increase in the future as it has so
conspicuously done in the past." PreSident Coolidge,
in replying to the Ambassador, said:"I am particularly gratified to receive through you his Majesty's
assurances of his friendship and regard for the people of the United States on this first occasion of the
nomination of an envoy to this country since his
Majesty's accession to the throne, and I trust that
you will be so good as to convey to his Majesty the
earnest hope entertained by the Government and the
people of the United States that under his reign, so
auspiciously begun, your country will continue to
enjoy the blessings of peace and prosperity. I
should also like to have you convey to his Majesty
my own personal best wishes for his happiness and
well-being."
Ceremonies very similar to those witnessed a year
ago were enjoined on Fascist Italy by Premier
Benito Mussolini last Sunday, in celebration of the
sixth anniversary of the "March on Roane," which
brought the Fascist Party into power. On the eve
of this occasion, the Premier performed one of his
most picturesque acts—that of burning in public
debt certificates representing 140,000,000 lire (about
$7,364,000) of the Government debt offered to the
Treasury by citizens of all provinces who wished to
contribute to a reduction of the State's indebtedness.
A multitude of Italians attended this ceremony,
which took place at the top of a broad flight of steps
on the Victor Emanuel monument in Rome. In
accordance with the Premier's exhortations, deeds
and not words marked the more widespread celebration of last Sunday. The deeds consisted of the
opening of nearly 3,000 public works. The only
words were a brief message from the Premier outlining these undertakings and calling for general
support. Brief meetings of Fascisti were held in
every province, and it was estimated that 1,250,000
adult members of the party attended. To them
Signor Mussolini said in his message: "Three events
ought to be recalled in this hour of happiness. The
currency reform, the Grand Council and 'the improvement of the whole' are three fundamental dates
in the history of the regime which have rendered
particularly significant the sixth year. The currency reform has protected the lira by guarantees so
that crises are no longer feared. The law of the
Grand Council guarantees the lasting stability of
National elections were held in Cuba, Honduras
the Fascist State. The improvement of the whole and Newfoundland the past week, the balloting iii.
has given land and bread to millions of Italians who every case passing off peacefully and smoothly. The
lacked them."
Cuban election took place Thursday, with President
Gerardo Machado unopposed for re-election to the
Czechoslovakia began last Sunday a week of cele- highest post in the Island. He received the votes
bration intended to commemorate the tenth anni- of approximately 75% of the qualified electorate,
versary of the establishment of the Republic, in the three leading parties uniting in his support. In
which the United States played so important a part. entering upon his six-year term on May 20 1929, he
In the capital, Prague, a great marble monument to will be starting the latter half of a ten:year adWoodrow Wilson, which was unveiled recently, was ministration—the longest of any Cuban chief execdecorated by the Government with fresh wreaths, utive since the establishment of the Republic. Honand the Czech national flag was entwined with the durans last Sunday elected DeVicente Mejia ColinStars and Stripes. Events scheduled for the week dres as President, and Rafael Diaz Chavez as Vice-
Nov. 3 1928.]
FINANCIAL CHRONICLE
President of the Central American Republic for the
period from 1929 to 1933. They represent the Liberal Party of Honduras, but were supported by other
parties as well. President Paz Baraona, the present Chief Executive, made special efforts to insure
a free and honest election, and he was given great
credit for the orderly balloting which resulted. Elections in Honduras have frequently been turbulent in
the past. The Newfoundland election was held Monday and resulted in the defeat of every Cabinet Minister, with the single exception of the Premier, F. C.
Alderdice. Sir Richard Squires, the Opposition
leader, who has been under a shadow for some years,
was returned by a large majority. A special dispatch of Wednesday to the New York "Times" gave
the latest returns as ten seats for the Government
and twenty-four for the Opposition, with six seats
still unheard from. The voting in the Colony is regarded as intensely personal by observers, although
plans for the development of Newfoundland industries also are involved.
2417
In its latest weekly statement, issued on Thursday,
the Bank of England reports a loss in gold of £1,817,118 and an increase in note circulation of 1,323,000;
causing a loss in the reserve of gold and notes in the
banking department of £3,140,000. The ratio of
reserve to liabilities dropped from 47.47% to 42.64%.
This time last year, the ratio stood at 28.22%, and
two years ago, at 27.01%. Both the "deposit"
items showed increases, public deposits gaining
£4,010,000 and "other deposits," £1,352,000. Loans
on Government securities increased £5,323,000 and
loans on other securities £3,171,000. Gold holdings,
which have declined severely since they reached their
largest total on Sept. 12, now total £164,920,677
against £151,251,087 last year and £152,807,082 in
1926. Notes in circulation aggregates £134,502,000,
against £136,575,945 last year. The bank's rate of
discount remains unchanged at 43/2%. Below we
furnish comparisons of the various items of the Bank
of England return for five years.
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1928.
1927.
1926. ' 1925.
1924.
Oct. 3.
Nov. it.
Nov. 3.
Nov. 4.
Nov. 5.
Restrictions imposed by the British Government
Circulation b
134.502,000 136,575,945 139,537.365 141,442.830 123,847,105
on the free exportation of rubber from the Malay. Public
deposits
14,133,000 21,346.328 19,158,212 14,212,839 16.406,074
103,523.000 100,653,530 103,068,630 105,800,826 109,352,057
States and Ceylon were removed Nov. 1, in accord- Other deposits
Govt. securities_ ___ 42,623,000 44,610,178 35,435,435 35,209.941 40.458,443
ance with the pronouncement made last April by Other
securities_ _ _ _ 42,562,000 60,673,065 71.466,127 75,148,114 78,592,064
Reserve
notes & coin 50,167,000 34,425,142 33,019.717 27,354.026 24,397.459
Prime Minister Stanley Baldwin, in the House of
Coin and bullion a _ _164,920.677 151,251,087 152,807,082 149,046,856 128,494,564
Commons. The end of the Stevenson Restriction Proportion of reserve
to liabilities
42.64%
28.22%
27.01%
22,54%
194%
Scheme was looked upon with relief by the more Bank
rate
4Si%
04%
5%
4%
4%
far-seeing British producers, according to London a Includes, beginning with April 29 1925, £27,000,000 gold coin and bullion
dispatches of Oct. 31. The scheme was imposed by 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 gold standard.
legislation in November, 1922. It caused a tem- 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
porary increase in the world price of rubber, but lield up to that time in redemption account of currency note issue.
it also gave a great impetus to the output of the
Dutch East Indies, and to the manufacture of reIn its Statement of October 27, the Bank of France
claimed rubber in America. "It has been removed," reports a decrease in note circulation
of 113,000,000
a London report to the New York "Times" said, "be- francs reducing the total to 61,327,166,255 francs.
cause in the long run it has done the British rub- Total note circulation last week aggregated
61,440,ber industry more harm than good." With the free 166,255 francs and for the week before
62,021,166,255
export of rubber impending, great shipments have francs. On the other hand creditor
current accounts
been gathering weight in the interior of Malaya, ac- rose 1,202,000,000 francs and current accounts
and
cording to a Singapore dispatch of Nov. 1 to the deposits gained 919,000,000 francs. Gold
holdings
Associated.Press. "The official estimate of rubber rose 34,000,000 francs during the
week and now
stocks at the end of September was 60,000 tons," the amount to 30,785,350,426 francs. French comreport said, "but the total amount awaiting ship- mercial bills discounted rose 10,000,000 francs
and
ment might easily be 30,000 tons more by now. The bills bought abroad, 8,000,000 francs while credit
railway and shipping facilities of Malay will be se- balances abroad dropped 109,000,000
francs and
verely taxed for the next two months. Estimates advances against securities 4,000,000 francs.
Below
of the amount of rubber to leave Malay: during No- we furnish a comparison of the various
items of the
vember set this at 65,000 tons. The December total bank's return for the past
3 weeks.
is even higher." Notwithstanding these figures, the
BANK OF FRANCE'S COMPARATIVE STATEMENT.
London Institute of the Rubber Industry was able
Changes
Status as of
Week.
Oct. 27 1928. Oct. 20 1928. Oct. 13 1928.
to state early this week that "the statistical position Odd Holdings— forFrancs.
Francs.
Francs.
Francs.
to-day is much healthier than could have been antici- Gold holt.ings ____Inc. 34,000,000 30,785,350,426 30,751,350,426 30.715,178,337
Credit bais. abrd —Dee.109,000,000 13,983,228,900 14,092,228,900 13.836,277.428
pated by anybody in April last, when the doom of French com'l bills
discounted
Inc. 10,000,000 3,070.236,252 3,060,236,252 3.150,236,252
restriction was proclaimed."
Bills bought abrd.-Inc. 8,000.000 18.493.447.083 18,485,447,083
No changes have been reported this week in discount rates by any of the central banks of Europe;
rates continue at 7% in Germany; 63/2% in Austria;
53/2% in Italy and Norway; 5% in Denmark and
Madrid; 43.% in London, Holland and Sweden; 4%
in Belgium, and 33/2% in France and Switzerland.
4% for
In London open market discounts are 41
4@ 4 5-16% on Friday of
short bills, as against 41
/
8@, 4 7-16% for three months bills,
last week, and 43
unchanged from last week. Money on call in London
after touching 43'% on Wednesday was down to
3% yesterday. At Paris open market discounts remain at 33'% and in Switzerland at 3 5-16%.
Advs.agnst.secur Dec. 4,000,000
Note eirculation.„Dee. 113,000,000
Creditor cur. accts.Inc.1202,000,000
Cur.accts. dt dep...Ine. 919,000,000
2,098,471,422
61.327,166.255
18.807,379,423
6.520,897,230
2,102,471,422
61,440,166,255
17.605,379,423
5,601.897,230
18.394,447.083
2,139.471,422
62,021,166,255
16,999,379,423
5,193,897,230
Heavy month-end demands for money were reflected by very firm conditions in the New York
money market throughout the past week. Preparations were begun at the start of the week for the
dividend and interest distributions of November /,
which were estimated at close to $300,000,000.
The rate for demand loans opened at 7% Monday,
but withdrawals by the banks of $15,000,000 caused
an advance to 8%. Some relaxation followed Tuesday, notwithstanding further withdrawals of $15,000,000. A rate of 73/2% prevailed on that day for
2418
FINANCIAL CHRONICLE
[Vor.. 127.
SPOT DELIVERY.
call money on the Stock Exchange, but in the out—180Dept— —150Dan-- —DO Dere—
Asked.
Asked. BM.
Asked. BM.
Bid.
side market funds were available at 7%. The 73'% Prime eligible bills
4le
414
44
and
ay
Wednesd
d
figure for daily money was continue
—90Days-- —80DWIS-.--•• —80DOO—
ASIA&
Asked. BM.
Asked. Bitt.
M
Thursday, with demand and supply apparently-well Prime eligible bills
434
434
434
434
41
434
balanced. No outside offerings were reported, withFOR DELIVERY WITHIN THIRTY DAYS.
4 bid
drawals of $15,000,000 and $30,000,000, respectively, Eligible member banks
Si bid
absorbing any free balance. The renewal rate was Eligible on-member banks
again 7% yesterday, but money returned to the
here have been no changes this week in Feder
market in sufficient volume after the month-end
Bank rates. The following is the schedule
eserve
outside
disbursements to cause a decline to 7%, with
of rates now in effect for the various classes of paper
offerings at 63'%.
at the different Reserve banks:
Brokers' loans against stock and bond collat
DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASS
hi
ever
to
advance
ted
precipita
continued their
AND MATURITIES OF ELIGIBLE PAPER.
levels in the weekly statement of the Federal Reserve
Date
Previous
Rase In Riled
Rate.
Established.
on Nov.2.
Bank of New York and in the monthly statement of
Federal Reserve Bank.
434
July 19 1928
5
the New York Stock Exchange,both of which as already Boston
July 13 1928
41.6
5
New York
July 26 1928
434
5
noted were issued this week. The Reserve Bank Philadelphia
434
1928
1
Aug.
5
Cleveland
July 13 1928
43.4
5
Statement for the week ended Wednesday night Richmond
July 14 1928
434
5
Atlanta
434
July 11 1928
5
Chicago
registered an increase of $134,871,000, even specula- St.
July 19 1928
434
6
Louie
4
25
1928
Apr.
434
amount
at
the
Minneapolis
tive Wall Street expressing surprise
4
June 7 1928
434
Kansas City
4
May 7 1928
434
Dallas
of the expansion. The statement of the Stock Ex- San
4
June 2 1928
ell
Francisco
$366,of
an
increase
showed
change for October
081,377. The absorption of credit in speculation
Sterling exchange has been under pressure throughthus indicated is the obvious reason for high call
the week and has been exceptionally dull. In
out
money rates, which in the past week were just double
usual short session on Saturday, the
those which prevailed at this time last year. Gold addition to the
brought to a practical standstill on
movements through the port of New York, as offi- market was
Feast of All Saints was a public
cially reported by the Federal Reserve Bank for the Thursday as the
, France, Belgium, Spain, Ausweek ended Wednesday night, were nominal. Ship- holiday in Germany
of other countries. The London
ments totaling $3,500,000 arrived from England tria, and a number
was closed, although the day
also
e
Stock Exchang
and Argentina in the latter part of the week.
in England. The range
holiday
public
a
Dealing in detail with the call loan rates on the was not
4.84 7-16 to 4.84% for
from
been
has
week
this
Stock Exchange from day to day, the renewal rate on
4.84 17-32 to 4.84 11-16
with
d
compare
sight,
bankers'
an
Monday was 73/2%, but on new loans there was
transfers has been
cable
for
range
The
week.
last
and
ay
advance to 8%. On Tuesday, Wednesd
d with 4.84%
Thursday, the rate each day was 73/2%, and on Fri- from 4.84 13-16 to 4.84 31-32, compare
underlying factors
day with the renewal rate still 732%, some loans to.4.85 1-16 a week earlier. The
they have been
as
later in the day were put through at 7%. Time affecting exchange are the same
the seasonal
namely
weeks,
several
loan rates show little change for the week. On for the past
and
demands
tourist
of
n
cessatio
the
with
Monday and Tuesday the quotation was 7% for pressure
money
York
New
the
in
rates
high
the
money
30, 60 and 90 day loans and 6%@7 for four, five
continued seasonal pressure increases
and six months. On Wednesday the quotations were market. The
of gold shipments from London to
s
prospect
the
for
6%@7% for the former maturities and 6%@7%
and also from London to Berlin. Gold
the latter. On Thursday the rate was 69(@7 for New York
s from London to this market during the
thirty,sixty and ninetSr days, and 63/2@7% for the re- shipment
week bring the total on the movement to
maining maturities. On Friday the shorter maturities past
ately $18,000,000. On Friday the purchase
remained at 6%@7, but for the longer maturities approxim
£1,000,000 gold in London for shipment
of
another
4%. Comthere was only the single quotation of 63
was announced, bringing the total on
York
New
to
mercial paper rates remained practically unchanged
to approximately $23,000,000. It is
t
movemen
the
the present week and names of choice character magold flow to New York will be
a
further
that
evident
turing in four to six months are still selling at 53j@the total reaches around
perhaps
until
d
permitte
at
ed
53/2%, with most of the business being transact
market seems now to
London
the
but
000,
$25,000,
well
less
the higher figure. The rate for names
the opinion that it will be necessary to increase
known also remains unchanged at 532@53'%, be of
the Bank of England rediscount rate to 5%. From
which also remains the rate for New England mill
present indications there are hardly any prospects
paper.
rates will soften materially here until
The posted rates of the American Acceptance that money
the turn of the year. This fact is, of course,
Council for prime bankers' acceptances eligible for after
quotations and may force
purchase by the Federal Reserve banks were reduced threatening to the sterling
to
increase its rediscount
England
of
the
Bank
A of 1% on Tuesday for bills running 150 and 180
Wall
Street to reduce its
were
Of
rate.
course,
days, but have otherwise remained unchanged.
London would not
ents
requirem
credit
ive
speculat
for
5
asked
Quotations now are 4/% bid and 43/2%
Bank of England rate,
bills running 30 days and also for bill runnii* 60 and be obliged to change the
British
5
asked for 120 days, and this would be greatly beneficial to
0 bid and 4,g%
90-days, 4%7
0 asked for 150 and 180 days. business as a whole.
and 4 8% bid and 4%7
This week the Bank of England shows a decrease
The posted rate of the Acceptance Council for call
18, the total standing at
loans against acceptances continued at 532% until in gold holdings of £1,816,1
s with £151,251,087 a
compare
Thursday when it was raised to 6%. Open market £164,920,677, which
of England sold
Bank
the
Monday
rates for acceptances were also marked down 3i for year ago. On
£28,000 in gold
Tuesday
On
bars.
gold
in
bills running 150 and 190 days and are now as follows: £245,000
Nov. 3 1928.]
FINANCIAL CHRONICLE
2419
bars. On Wednesday £538,000 in gold bars. On ports were 10,556,000,000 marks, compared with
Thursday £7,000 in gold bars and on Friday £1,013,- 10,344,000,000 marks in the first nine months of 1927,
000 in gold bars and exported £10,000 in sovereigns an increase of 212,000,000 marks. Exports, however,
to Holland. It developed that the £245,000 was increased 1,140,000,000 marks from 7,394,000,000 to
shipped to Germany. In addition £200,000 which 8,534,000,000 marks. The foreign trade figures for
came unexpectedly into the London open market on August and September were especially favorable.
Tuesday from some unknown source was also shipped The trade balance is still heavily against Germany,
to Germany. Speyer & Co., New York bankers, an- and is not offset by invisible exports such as shipping
nounced on Wednesday that they were receiving receipts, insurance, tourist expenditures, &c. It is
$2,500,000 in gold from the Bank of England, which offset at present by short-term borrowing abroad,
was coming here on the Homeric, having left the chiefly in the New York market, as it had been by
other side on Thursday. On Friday the American long-term borrowing abroad up to the middle of this
Exchange Irving Trust announced that it had ac- year. Bankers say that the borrowing must conquired another $5,000,000 in London. At the Port tinue until Germany's industries have expanded sufof New York the gold movement for the week Oct. ficiently to bring about an export trade balance large
25-Oct. 31, inclusive, as reported by the Federal Re- enough to take care of reparations and other obligaserve .Bank of New York, consisted of imports of tions abroad. Germany is a debtor nation, with
$94,000, of which $11,000 came from France, $4,000 debts constantly increasing; and so it is an anomaly
from Great Britain, and $79,000 from Latin America. to see gold flowing to Germany. It is believed that
Gold exports totaled $80,000, which was shipped to .the gold flow is temporary and will come to an end
Java. There was no Canadian movement of gold when Germany's borrowing abroad declines below
either to or from the Port of New York. Canadian current requirements of obligations abroad. As alexchange continued easy throughout the week, rang- ready noted in the discussion on sterling, Germany is
ing from 3-32 of 1% to 1-64 of 1% discount. The again taking gold from London in large amounts.
weakness in Canadian exchange is attributed chiefly French francs have been steady. French interests
to the flow of Canadian funds for investment in the are lending heavily in the German markets, where
New York collateral loan market. Last year Cana- money rates are attractive. The franc quotation is
dian dollars held at a premium throughout October maintained at present levels through exchange operand November and for the first few days of December. ations of the Bank of France aimed at maintaining a
Money rates are firm in Canada, but there is no rate sufficiently high to prevent German banks from
stringency. A record Canadian wheat crop is now taking any of the French gold stock. France is not
being moved to market. The exportable surplus is only unwilling to relinquish any of its present gold
estimated at around 400,000,000 bushels. While holdings, but desires to strengthen its gold reserves
bankers in New York expect firmness for a few weeks, still further so as to raise to a higher percentage the
they do not think that the favorable factors can off- reserve cover against its liabilities.
set the effect of the high money rates in New York
Italian lire continue firm and the unit is in some
which are so attractive to Canadian funds.
•
demand in the New York market owing, as frequently
Referring to day-to-day rates sterling on Satur- stated, to the small but steady flow of funds for inday last was under pressure in a dull short session. vestment in Italian securities and to immigrant reBankers' sight was 4.843/
20,4.84%, and cable trans- mittances. Italy, it is understood, will continue to
fers 4.84%@4.84 15-16, on Monday sterling was import small quantities of gold until the gold in the
slightly firmer. The range was 4.843/
2@4.845
/ for bank reaches one-half of total reserves. The economic
bankers' sight and 4.84%@4.84 15-16 for cable situation is favorable. _Savings bank deposits reported
transfers. On Tuesday sterling was under pressure. for the first seven months of this year increased
The range was 4.84M@4.84 9-16 for bankers' 1,349,000,000 lire. In the same period last year the
sight and 4.84%@4.84 15-16 for cable transfers. increase was only 7,000,000 lire. In twelve months
On Wednesday the market continued dull. Bankers' ending July of this year the increase in savings was
sight was 4.84 7-16@4.84 9-16 and cable transfers 2,168,000,000 lire, as against only 64,000,000 lire in
4.84 13-16@4.84%. On Thursday the market was the previous twelve months. Calculated in gold lire
practically at a standstill owing to the All Saints they were 1,416,000,000 above the pre-war total.
Day holiday in the European centers. The range Polish exchange is regarded as one of the more inacwas 4.84 7-16@4.84 19-32 for bankers' sight and tive exchanges in the New York market, but interest
4.84 13-16@4.84 31-32 for cable transfers. On Fri- attaches to it this week, because at the request of
day the range was 4.84 7-16@4.84 9-16 for bankers' the Bank of Poland, the Federal Reserve Bank of
sight and 4.84 13-16@4.84% for cable transfers. New York in association with other Federal Reserve
Closing quotations on Friday were 4.84 for de- banks has extended for another year the one-year
mand and 4.84% on cable transfers. Commercial credit to the Bank of Poland which expired Oct. 13.
sight bills finished at 4.84%;60-day bills at 4.80 9-16; Under the terms of the arrangement the Federal Re90-day bills at 4.789.; documents for payment (60 serve Bank of New York agreed to purchase from the
days) at 4.80 9-16, and seven-day grain bills at Bank of Poland, if desired, prime commercial bills
%. Cotton and grain for payment closed at up to a total of $5,250,000. Each of the foreign banks
4.833
of issue participating in the original agreement have
4.84%.
also agreed to the extension. Imports into Poland
In the Continental exchanges, German marks con- during the first half of the current year were $63,tinue in demand. Germany's foreign trade figures 121,250 above exports, reaching a record high. This
go far toward explaining the persistent strength in is one of the inevitable results of the recent stabilizamark exchange. For the first nine months of 1928 tion of the currency, for the influx of foreign capital
excess of imports over exports was 2,022,000,000 from the stabilization loans has made available both
marks, which was 928,000,000 marks less than the banking and merchandise credits. The general ecoimport balance for the same period last year. Im- nomic recovery of the country and the resulting ex-
2420
FINANCIAL CHRONICLE
pa,nsion of industry have created a sharp need for
machinery and equipment and the import demand
for such goods has mostly accounted for the continuation of the import balance.
The London check rate on Paris closed at 124.10
on Friday of this week, against 124.15 on Friday of
last week. In New York sight bills on the French
centre finished at 3.90 7-16, against 3.90 7-16 a
week ago; cable transfers at 3.90 11-16, against
3.90 11-16, and commercial sight bills at 3.90 3-16,
against 3.90%. Antwerp belga,s finished at 13.89%
2 for cable transfers, as
for checks and at 13.903/
against 13.89% and 13.903/ on Friday of last week.
Final quotations for Berlin marks were 23.813
for checks and 23.823 for cable transfers, in comparison with 23.82 and 23.83 a week earlier. Italian
2 for bankers' sight bills and at
lire closed at 5.233/
4 for cable transfers, as against 5.235
5.233
% and
from
changed
not
have
schillings
5.23%. Austrian
%. Exchange on Czechoslovakia finished at
141
2.9615, against 2.9615; on Bucharest at 0.603'I,
2; on Poland at 11.19, against 11.18,
against 0.603/
and on Finland at 2.52, against 2.52. Greex exhange closed at 1.29 for checks and at 1.293/2 for
cable transfers, against 1.29 and 1.293/2.
The exchanges on the countries neutral during the
war, like the major Europeans, are dull. This week
they have been especially inactive. Holland guilders
are firm notwithstanding seasonal pressure and the
flow of funds from Holland to Berlin, London, and
other centers where money rates are attractive to
idle Dutch capital. The Scandinavian exchanges have
been exceptionally inactive this week, though showing basically hardly any change from recent weeks.
Swedish kroner are steady. General business in
Sweden is showing favorable developments. Labor
disputes, which were rife several months ago, seem
to have been altogether cleared up. There is a marked
general improvement also in Norwegian industry and
agriculture during the past few months. The wholesale index of prices in Norway, which was 153 in
August, has shown a slight downward tendency since.
Several new large banks have been "recently established in Norway and these institutions have already
exerted a beneficial effect on the financial situation
of the country. Spanish pesetas have been ruling
steadier than for several weeks past. London dispatches on Wednesday stated that the Bank of Spain
had shipped $10,000,000 gold to London and that
$20,000,000 more would be shipped to protect the
peseta, which has been depressed recently by speculative selling and the results of a poor crop. Financial markets generally are still pessimistic with regard
to the Spanish exchange position. The fact that strenuous attempts on the part of the official control committee to keep the exchange steady have not succeeded is taken as an indication that the international
balance of payments is heavily against Spain.
Bankers' sight on Amsterdam finished on Friday
at 40.09, „against 40.073/i on Friday of last week;
cable transfers at 40.11, against 40.093/2, and commercial sight bills at 40.06, against 40.033 t. Swiss
francs closed at 19.23% for bankers' sight bills and
at 19.243/ for cable transfers, in comparison with
19.233A and 19.243/ a week earlier. Copenhagen
cheeks finished at 26.65 and cable transfers at 26.663/
against 26.653, and 26.67. Checks on Sweden closed
at 26.71% and cable transfers at 26.73, against 26.713/
and 26.73, while checks on Norway finished at 26.643/i
[you 127.
and cable transfers at 26.66,against 26.65 and 26.663/
2.
Spanish pesetas closed at 16.13 for checks and at
16.14 for cable transfers, which compares with 16.093/
and 16.103/ a week earlier.
The South American exchanges have as a special
feature of interest this week the firmness of the Argentine peso. All Saint's Day on Thursday added to the
dullness of all the South American exchanges. The
improvement in the peso lessens the probability of a
large gold movement from Buenos Aires to New York.
A shipment of $1,000,000 gold arrived in New York
from Buenos Aires on Wednesday. This is the second
arrival on the present movement, as $1,000,000 was
received here last week by the Guaranty Trust Co.
It is understood that additional shipments of gold are
either on the way here from Argentina or abqut to
start as a result of weakness in the rate. However, a
firmer tone in pesos this week may cause a cessation
of the movement, especially since Argentine bankers
and official interests are greatly averse to permitting
an outflow of gold from Buenos Aires. The Argentine export season begins shortly. Argentine paper
pesos closed on Friday at 42.19 for checks, as compared with 42.10 on Friday of last week, and at 42.24
for cable transfers, against 42.16. Brazilian milreis
finished at 11.94 for checks and at 11.97 for cable
transfers, against 11.93 and 11.96. Chilean exchange
closed at 12 1-16 for checks and at 123/i for cable
transfers, against 12 1-16 and 123', and Peru at 4.00
for checks and at 4.01 for cable transfers, against
3.99 and 4.00.
The Far Eastern exchanges have been in better demand as the commercial and financial conditions in
both China and Japan continue to make satisfactory
progress. Japanese yen fluctuated rather widely
this week. Present quotations around 47 compare
with 45.88 about two weeks ago and with the year's
low of 44.75, touched in August, and the year's high
of 48.12 in March. The current rise has mystified
the market here and also in London. The factor of
greatest uncertainty is the possibility of lifting the
Japanese embargo on gold exports, which would mean
a return to exchange parity of 49.85. About three
weeks ago Japanese exchange started to rise. It is
known that Chinese speculators were heavily short
and have been forced to cover. Consensus of opinion
seems to be that the rise of yen in recent weeks is
largely speculative in character. The firmness in
yen, however, is attributed partly to negotiations for
a $19,900,000 Oriental Development Company loan
offered on Tuesday. The loan will build up Japan's
foreign balances, which have declined steadily in recent years. This loan may be followed by other
financing in this market. Closing quotations for
yen checks yesterday were 46.60@47, against 47.20
@,48 on Friday of last week. Hong Kong closed at
s@50 3-16, against 503'1@50%; Shanghai at
503/
4,
/, against 64%@64 9-16; Manila at 493
64%@643
%
against 499; Singapore at 56%@56%, against 563
/s, against 36%, and Calcutta
@56%; Bombay at 365
at 36 8, against 36%.
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:
FINANCIAL CHRONICLE
Nov. 3 1928.]
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922,
OCT. 27 1928 TO NOV. 2 1928, INCLUSIVE.
Noon STOW Rate for Cable Transfers to New York.
Value in United States Money.
Country and it
Unit.
Oct. 27. Oct. 29. Oct. 30.
,-.
$
$
$
EUROPE.140688 .140592 .140580
Austria,schilllng
.138980 .138980 .138982
Belgium. belga
007219 .007200 .007175
Bulgaria, lev
Czechoslovakia, krone .029620 .029629 .029830
266559 .266570 .266592
Denmark, krone
England. pound ster- *I
.848750 4.849059 4.849111
sterling
.025169 .025179 .025171
Finland, markka
039053 .039058 .039061
France,franc
Germany, reichsmark. .238251 .238245 .238233
.012934 .012932 .012933
Greece, drachma
.400872 .400971 .400989
Holland, guilder
.174170 .174171 .174221
Hungary, Mingo
.052374 .052380 .052377
Italy, lira
.266519 .266511 .266529
Norway, krone
.111990 .111990 .112100
Poland. sloty
.044945 .044937 .044990
Portugal, escudo
.006058 .006066 .006057
Rumania,lets
.161068 .161059 .161013
Spain, peseta
.267269 .267277 .267290
Sweden,krona
Switzerland, franc- .192434 .192434 .192426
.017589 .017592 .017589
Yugoslavia, dinar
ASIAChina.655833 .654166 .654375
Chetoo tadl
.655416 .653750 .654791
Hankow tact
.642410 .639821 .640714
Shanghai tael
675416 .673333 .673958
Tientsin tact
Hong Kong dollar._ .501071 .499642 .500178
Mexican dollar_ _ _ _ .468250 .466000 .466750
Tientsin or Pelyangi
.467500 .465416 .466250
dollar
.464166 .462083 .462916
Yuan dollar
I .364957 .364950 .364796
India, rupee
.471902 .473772 .469494
Japan, yen
AMER.-]Singapore(S.13.)dollar .562350 .563333 .562916
NORTH
.999474 .999709 .999782
Canada, dollar
.999375 .999468 .999531
Cuba. peso
476875.477000 477166
Mexico, peso
Newfoundland, dollar. .997062 .997328 .997250
SOUTH AMER.Argentina, peso (gold) .956614 .956596 .957042
.119475 .119518 .119431
Brazil, milreis
.120778 .120780 .120628
Chile, peso
1.018902 1.018652 1.018977
Uruguay. peso
074400 .973200 .972100
Colombia, Peso
Oct. 31.
Nov. 1.
Nov. 2.
$
.140644
.138970
.007205
.029631
.266566
S
.140659
.138967
.007205
.029626
.266577
$
.140630
.138978
.007175
.029630
.266582
4.848535
.025174
.039056
.238216
.012938
.400990
.174228
.052372
.266523
.112020
.045000
.006058
.161159
.267267
.192427
.017590
4.848777
.025170
.039061
.238182
.012921
.400994
.174243
.052376
.266513
.111980
.044940
.006062
.161245
.267264
.192423
.017588
4.848274
.025174
.039061
.238184
.012925
.401034
.174253
.052375
.266496
.111980
.045020
.006066
.161268
.267271
.192422
.017580
.654791
.654791
.641607
.674375
.500535
.467500
.653958
.653125
.639107
.673958
.499553
.465750
.652083
.652500
.639553
.672083
.499642
.465250
.466666
.463333
.364863
.465644
.562916
.465416
.462083
.364739
.466950
.563750
.464583
.461250
.364821
.466611
.563333
.999635 .999414
.999718 .999562
.478500 .478500
.997125 .997000
.999080
.999500
.478333
.996687
.957443 .957518 .957655
.119565 .119527 .119522
.120623 .120625 .120554
1.018752 1.018602 1.018102
.972100 .972100 .972100
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
giving 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.
Saturdar, Monday,
Oct. 29.
Oct. 27.
111441,000
Tuesday, Wednesd'y, Thursday,
Oct. 31.
Nov. 1.
Oct. 30.
Friday,
Nor. 2.
$
98,000,000 105,000,000 142,000,900 123049.000 148,000,000
Aggregate
for Week.
Cr.724.000,00
Note.-The foregoing heavy credits reflect the huge mass of checks which come
to the New York Reserve bank from all parts of the country in the operation of
the Federal Reserve System's par collection scheme. These large credit balances,
however, reflect only a part ot the Reserve Bank's operations with the Clearing
House institutions, as only the items payable in New York City are represented in
the daily balancm. 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.
The following table indicates the amount of bullion in the principal European banks:
Nov. 1 1928.
Banks Of
-
Gold.
England- - 164,920,677
France --- a246282803
Germany b 119,754,200
104,107,000
Spain
54,221,000
Italy
Netherl'de 36,249.000
Nat. Belg. 23,080,000
Switzeri'd. 18,504,000
12,833,000
Sweden
Denmark _ 9,605,000
Norway .. 8,163,000
Siker.
Nov. 3 1927.
Total.
Cold.
I
Silver.
Total,
£
£
164,920,677 151,251,087
151,251,087
d
246,282,803 146,220.324, 13,680,
159,900,324
c994,600 120,748,800 89,348,550,
994,60 90,343.150
131,093,000
104,108,000' 26,986,,,, 131,094,000
26,986,000
I 54.221.000 46,902,000; 3,730,
50,632,000
1,850,000 38.099,000 32,177.000; 2,300.000 34,477,000
1,251,000 24,331,000 19,503,000 1,197.000 20,700,000
1,930.000 20,434,000 18,461,000 2,515,000 20,976,000
12,833,000 12,833,000
12,833.090
590,000 10,195,000 10.116,000
691,000 10,807,000
8,163,000 8,180,000
8,180,000
Total week 797,719,680 33,601,600 831,321,280639,099,981 52,093,8
Prey. week 799,898,806 34,224,600834,123,406 638,898,639 51,938,6
691,193,561
690,837,239
a These are the gold holdings of the Bank of France as reported in the new form
of statement. 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.
d Silver is now reported at only a trifling sum.
2421
A New Phase of the Reparations
Controversy.
The announcement on Oct. 19 that Premier Poincare, Winston Churchill, the British Chancellor of
the Exchequer, and S. Parker Gilbert, Agent-General
for Reparations Payments, had agreed at Paris
upon the creation of an international commission to
determine the amount of reparations that Germany
should pay, marks the first formal step that has been
taken to give effect to the understanding reached
at Geneva, on Sept. 16, between the representatives
of Germany, Great Britain, France, Italy, Belgium
and Japan. On Tuesday the German Government
instructed its representatives at London, Paris,
Rome, Brussels and Tokio to inform the Governments to which they were accredited that Germany
proposed the appointment of an independent commission of experts to fix the total of reparations and
the conditions under which future payments should
be made. Accompanying the proposal of a commission
were certain tentative suggestions, on which an expression of opinion from the Governments concerned
was invited, regarding the composition of the commission,the place and date of meeting, and necessary
matters of procedure. The only point upon which
Germany appears to have been insistent was that
the commission should be made up of civilians and
not of Government representatives, and that it
should be entirely free, as was the Dawes Commission, of Government control. The main reason for
this contention, it was understood, was the belief
that unless the proposed commission were given a
wholly non-political character, the co-operation 'of
the United States, which was regarded as vital to
the success of any new plan, could not be insured.
The initiative in this undertaking, of which the
two events just referred to are at the moment the
outstanding features, appears to have been taken
by Mr. Gilbert. In his report on the working of the
Dawes plan for 1927, Mr. Gilbert called attention
to the difficulties incident to continued uncertainty
regarding the amount of reparations which Germany
must ultimately pay, and intimated pointedly that
the time was at hand when the total sum should be
fixed. The intimation was enforced by the fact
that the fifth year of the Dawes plan, with its maximum payment of 2,500,000,000 marks, had been
reached, and by doubt whether Germany could continue to pay indefinitely so considerable a sum.
The Geneva understanding, it will be recalled, grew
out of Chancellor Mueller's demand for an early
Allied evacuation of the Rhineland, and M. Briand's
counter-demand for some compensation to France if
the French troops were to be withdrawn. The outcome of the debate was an informal agreement that
Germany would consider the possibility of hastening
its reparations payments, provided it could agree
with the Allies upon the total amount to be paid.
Mr. Gilbert was reported on Oct.'18 to have induced
the Baldwin Government to agree to the appoint
ment of a commission of experts, and the agreement
was confirmed at Paris the following day. Representatives of the Belgian Government were consulted
by Mr. Gilbert on Oct. 23, and two days later Mr.
Gilbert reported to Chancellor Mueller the results
of his interviews.
The discussian of financial details which has been
reported in voluminous dispatches from Paris, London and Berlin is, of course, at this stage, largely
2422
FINANCIAL CHRONICLE
theoretical. Until the composition of the commission has been agreed upon, the scope of its authority
determined, and the commission itself actually set
up, the precise figures that will be considered and
the methods of payment that will be proposed must
remain matters of speculation. Some data presented
by the Paris correspondent of the New York
"Times," on the other hand, together with recent
statements by M. Poincare and Winston Churchill,
are of importance as indications of the problems
which the commission will have to consider.
In a speech at Chingford, on Oct. 23, Mr. Churchill, after stating that the object of the proposed conference was "to restore to Germany power to manage her own financial affairs without foreign control, and also to let her know for certain what total
she will have to pay," reaffirmed the adherence of
the British Government to the Balfour principle of
asking of its Allies such amounts in payment of
their war debts as will enable Great Britain to meet
its own debt obligations to the United States. M.
Poincare, in turn, speaking at Caen on Wednesday,
reaffirmed with some emphasis the contention of his
speech at Chambery, on Sept. 23, that France must
receive from Germany enough to pay its war debts
and its expenditures for reconstruction Assuming
that these declarations of policy are adhered to, the
schedule of annual payments to be demanded of
Germany works out substantially as follows: the
combined Allied debt payments to the United States,
all of which the Allies hope ultimately to recover
from Germany, amount at their maximum to about
1,400,000,000 marks annually. Belgium is reported
to insist upon the payment of about 200,000,000
marks annually on account of the 4,000,000,000
paper marks which the Germans introduced into
Belgium during the war. The cost to France of
reconstruction has been estimated as at least
14,000,000,000 marks, 5% of which annually brings
the total demand upon Germany to 2,300,000,000
marks. To this is to be added the demand of the
United States for 21/4 per cent of the reparations
payments to meet the cost of the American army of
occupation, which in turn is to be used to cover
American claims against Germany.
It is of course apparent that if such demands, or
demands approximating these, are to hold sway over
the deliberations of the commission, the present
maximum of the Din-es payments eanint he materially reduced. The only hope for Germany, it
would therefore seem, lies either in some substantial
lowering of the Allied demands, or in the utilization
of some new source of revenue or credit with which
to meet Allied requirements. At this point • the
discussion which has been going on in Europe appears to have concerned itself with the possibility
of utilizing the German railway and industrial
bonds which the Dawes plan created, or of floating
some other form of German loan applicable to the
discharge of reparations. Particular attention, it
is reported, has been given to the possibility of
anticipating the payments for a period of years by
means of a loan, thereby giving the Allied creditors
a considerable sum of money immediately available,
and at the same time reducing the annual payments
on such total as still remained due.
Since M. Poincare's insistence upon linking reparations with war debts is interpreted as meaning,
among other things, that reparations payments will
have to continue as long as the debt payments run,
[vol.. 127.
any scheme of advance payment would operate to
reduce the period of 62 years or so contemplated
by the American war debt settlements, and thereby
bring the ultimate discharge of Germany's obligations nearer to the 30 years from May 1, 1921, which
Article 233 of the Treaty of Versailles prescribed
as the date by which Germany's debt to the Allies,
if no default occurred, should be paid.
The chief argument, of course,in favor of reducing
as well as fixing the maximum which Germany shall
pay, aside from the political danger of allowing the
payments to run on indefinitely, is the extraordinary
burden which the present maximum annuity of the
Dawes plan imposes upon Germany, and the artificial support which the payments thus far made
have received. How serious a weight an annual
payment of 2,500,000,000 marks imposes upon Germany has been strikingly shown by Dr. Max Winkler, the well-known economist. "One obtains a
better idea of the significance of this figure," Dr.
Winkler was quoted as saying on Oct. 22, "if he
takes into account the fact that it represents more
than double Germany's customs receipts for a whole
year; that it is equivalent to more than 86% of Germany's annual income taxes; to only a little less
than one-half the total amount of money in circulation in Germany at the beginning of last month;
to the net annual output of the entire coal industry;
to twice the annual production of the chemical industry; to about 40% of the annual receipts of the
Garman railways; to about 60% of the annual imports of food stuffs; and to the amount required
annually for new buildings in the Reich."
And how have these enormous payments actually
been made? "For the four years ended August 31,
1928," Dr. Winkler continued, "Germany has paid
on account of reparations the impressive total of
$1,362,500,000, and we are told that the Dawes plan
has been decidedly successful and that payments
have been made promptly and regularly. To begin
with, $200,000,000 of the above sum came from the
Dawes loan. The net amount obtained through
long-term issues is placed at $1,325,000,000, while
the amount of short-term loans may be estimated
at not less than $1,000,000,000. Having paid out
only 53.43% of what she has received, we need not
be surprised at the promptness of Germany's payments or the success of the Dawes plan."
Any settlement of the reparations question, whatever the outcome of the present negotiations, obviously involves other factors than those which had
to be considered in the American war debt settlements. In the latter case the amounts due from
each debtor nation were known, and the leading
principal applied, other than that of spreading the
payments over a long period, was that of the capacity
of the debtor to pay. In the case of Germany, on
the other hand, the amount actually due has not
yet been determined, no substantial support having
been given in any quarter to the fantastic figure of
132,000,000,000 gold marks promulgated by the
Reparations Commission, and the capacity of Germany to pay at any such rate as it has contrived
to maintain thus far is seriously in doubt. German
authorities have also pointed out that any revision
of the present arrangement, however advantageous
it might be in giving Germany full control of its own
financial affairs, would deprive it of the artificial
protection which the transfer provision of the Dawes
plan gives to its exchange, and that if the Allies
Nov. 3 1928.]
FINANCIAL CHRONICLE
2423
bound by their governmental nature. At the very
outset representation in such an association might
present some obstacle. Delegates might easily be
chosen under our system; they would in European
States, barring Great Britain, often be at the sanction of Government.
We are not without proper contacts with European central banks through our own private international bankers. These institutions, with us, are
perhaps the most individualistic banks we have.
They handle the international loan business—and
commit neither our banks nor our government to
any entangling alliance, financial or other. If they
seek the approval of our government in any of the
bond flotations which they scatter among our people, it is voluntary and commits our government in
no way whatsoever. On the other hand, in an International Bankers Association, it is most probable
An International Rankers' Association—Do We that the voice of the bankers of the United States
would come to be regarded as the voice of the naNeed It?
This,from a governmental standpoint at least,
tion.
well,
functions
Association
Bankers
Our American
though it is composed of several units not always in would not be desirable. We now have the question
complete accord. And there is reason for this. of the war debts which in the course of settlement
While we have a State Bankers Section, one for na- will affect the banking systems of all nations. It
tional banks, savings banks, trust companies and happens to be a government question as these debts
clearing houses, we have, in theory and almost unan- are due to our government and not to our citizens.
imously in practice, a system composed of independ- In this case, our bankers cannot speak for the people
that
ent banking integers. While it is sometimes inti- or the government. And it would be inevitable
of
deliberations
the
into
enter
should
matters
these
veering
that
our
is
Federal Reserve System
mated
would
Centralization
toward a Central Bank with the chief seat of power this new, and gigantic body.
vested in the Federal Reserve Bank located in New be set up on a colossal scale.
After long study by a Monetary Commission apYork City, yet it remains true that our individual
banks of all classes are free and independent in and pointed by Congress, an emergency currency system
of themselves. Also, it must be said that our Amer- was proposed known as the Aldrich plan. It failed
ican Bankers Association does not interfere with of passage. It came very close to the formation of
their individual functioning. The A. B. A. is free a great central bank. Not quite, it is true, of a
from attempted domination. It strives to discuss strictly governmental nature, but leaning in that
and consider practical problems of procedure, the re- direction. Later, under another administration, anlation of banks to industry and commerce, and of other plan was proposed and adopted. Twelve refinance in general to the welfare of business and the gional banks were created, and the national banks
people. It has, and seeks, no authority to bind any forced into membership. Quasi-governmental powbank, be it State, national, or savings or trust com- ers were attached. But it was believed that twelve
pany (which has come to be a quasi-banking institu- regional banks would prevent too great a centralization having fiduciary powers). It is the creature, tion of power. That system we now have in an
therefore, of a system of banking that has grown up amended form, and yet in an experimental stage.
under a liberal and representative democracy. It is Until this system is perfected by time and experiin no way allied to the Government, although the ence, how shall the banks of the country present
member national banks in the Reserve System have themselves for membership in an International
Bankers Association? How join in the deliberations
a close relation thereto.
This condition does not obtain in European coun- of these foreign great Central State Banks? Granttries. There, for the most part, the great central ing that a delegate representative system may be
banks are Government banks. As a rule, the system worked out through the free action of our independof branch banking prevails. No parallel exists to ent banks of all classes, whence and how will come
our American Bankers Association. Government the instructions to these delegates? And how precontrol prevents the free alliance of these foreign vent the growth of a super-international financial
banks even in matters of procedure, although there power?
Is it not desirable that the newly-formed repubmay exist fundamental agreements within States, as
to customs and practice. A proposal, therefore, to lics, following the World War on European soil,
inaugurate an International Bankers' Association is bring themselves to stable currencies and balanced
fraught with difficulties, in that the combining sys- budgets, before their banking systems undertake to
tems are not founded on the same base, function join in an International Bankers Association such
under the will of the Governments, and have little as is now proposed? Is it not desirable that the
in common in their domestic structure or in their larger States of the Continent become reconciled,
national relations. It is easy to see that in matters harmonious, in concord over debts and reparations,
of exchange, currencies, loans commercial and gov- before a new banking course is pointed out; in fact,
ernmental, such an International Association might before it is possible? What of the republics to the
in time work much good in simplifying the monetary South of us now in process of increase through
and financial tools of trade and thus advance com- classes of immigrants not altogether acceptable on
merce and industry throughout the world. But trade our own soil? Will the new Association rest on a reitself is not free, and the great central banks are gional or continental plan? This is the meat of the
must be satisfied that Germany will pay what it
promises to pay, Germany itself must also be left
in a position to make the necessary transfers without disturbing exchange. All of these difficulties,
however, only emphasize the need of an expert examination of the whole question, free as far as possible from political interference from the one side
or the other. It may be true, as M. Briand is
reported to have remarked in commenting on the
German request for an independent commission,
that "there never have been any independent experts," but the history of the Dawes Commission
clearly indicates that an international commission
that was any less free than that one was to ascertain
facts and reach conclusions would not inspire confidence in the financial circles which alone can assure
a successful settlement.
2424
FINANCIAL CHRONICLE
[Vol,. 127.
whole question—that these various banks are crea- earth, scarcely visible to the mighty airship serenely
tures of their own peoples, or their own govern- moving in the blue above, a network of wires throbs
ments. There is no demand by the American people with the thoughts of a people's progress and sings
for this alliance. With us our banks are in a large the song of humanity's labor; in a library, books
sense the people. With us all roads lead to the bank treasure up the storied knowledge and wisdom of
and the road is free to all. Production, transporta- the ages,in a clinic, magic instruments and measured
tion, distribution and use are free to approach our medicinals lend their healing power to affliction
banks at will, to demand a service the government and pain, and in ivied halls of learning youth gathdoes not impose or regulate save in a ministerial ers the vintage of a thousand years of investigation
way. How can international politics be kept out of and research; all these are the glory of the world—
an international bankers association? Far from fi- are Capital!
nancial domination of our free country is it politic
We measure the value of all these wonders,for comto enter into a dominating financial foreign associa- mercial convenience, in terms of dollars; but their
tion?
real value is immeasurable and lies in the well-being
In every country of the world there are those who of man. Destroy their physical nature and their
animadvert against a "money power." With us, we glory departs, leaving the spiritual housed in them
know this, under our free banking system, to be a to be rediscovered and recaptured. Capital thus
myth. Is it so clearly a myth among government becomes a representative of dream and vision, an exbanks elsewhere? Do we want to lend countenance emplification of hope and faith, an embodiment of
to this cry? We have something to fear at home— toil and trust, a helper to all men irrespective of
the growth of branch banking and its inevitable caste or condition. Where did it begin? Mayhap
centralization of credit power into a few banks with in a garret under the "midnight oil"; perchance in
branches throughout the country—branches without a sod hut on a lonely prairie; or yet in a busy mart
initiative, immobile to the requirements of sectional where men gather and trade, combine for power and
resources and industrial needs-branches that are efficiency, and by the alchemy of credit project that
formal, cold, bound by routine and removed from power into the unknown of experimentation and intheir patrons? Shall this be extended by associa- vention. Capital, though it wears a material form,
tion with banks of foreign countries? Free and in- has a spiritual content, a soul that strives for the
dependent banks such as serve and have served our higher life of man and the immortality of manown people do not obtain abroad. By entering an kind.
international banking association will we increase
Oapital remains when all else departs; it is the
or diminish this satisfactory relation between peo- stored up labor of those who pass and return no
ple and banks? What have we to gain? It will more; it is a heritage to all who
come, and an innot be a gain to find our principal banks consulting spiration to those who stay.
Its ownership is vested
with non-free banks abroad—even over the inci- in many individuals who give it
direction and force.
dental methods of procedure, for they are thus em- Vested, as some have tried, in the
masses, it is as
broiling themselves in foreign affairs!
a flower that withers and dies for want of the touch
We are as a people opposed to entering the of a tender hand and love of a constant heart.
PriLeague of Nations, we are not yet a member of the vate ownership, as we use the term, is its safety and
World Court. Shall we make, even in name, an al- salvation. What all men own in common and no
liance with foreign financial powers, while still op- man owns in fee, has neither life, nor energy, nor
posed to joining in these organizations of a peace- compassion, nor perpetuity. Among the modern inful nature? It must be said, recurring to the Amer- ventions of man are "stock certificates" in huge enican Bankers Association, that our Association is terprises that burgeon through combination and
not and does not pretend to be a financial power in yet preserve private ownership through voting powits relation to the people. But can an international er. And just as the uses of things inure to owner
bankers association be patterned after this, when and non-owner, so the "corporation" limits "liabilforeign members are foreign government banks, ity" and gives perpetual life. Capital is the cryshand in glove with monarchies, autocracies, and un- tallized essence of human accomplishment.
tried republics? The reaction on our banking sysThe paper representatives of capital we buy and
tem cannot be other than adverse to the constitution sell on the Stock Exchange, but in factory and
a our free banking system. It can add no good to farm, in home and mart, in store and shop, the
the republic we cherish and maintain. Let foreign wheels turn, the lives unfold, and the labor uplifts,
powers look after their own banks free from inter- regardless of purchase and sale. Capital is a living,
ference by outsiders. Let us do the same. We have breathing thing. It gives increase to
production,
yet many questions concerning the free use of credit wings to exchange, direction to distribution and
to work out for ourselves through or in the Federal realization to consumption and use. It is nothing
Reserve System. The time does not seem ripe for without man—man would be inert Without it. If
this step, if indeed it ever shall become so.
in the dawn. of civilization the savage but bequeath
his flint arrow and stone axe to his son and succesWhat Is Capital?
sor, that is ownership and that is capital. The noOut of a city's conglomerate masses of steel and mad of the forest and plain wandering in search of
stone a tower-building stretches its slender spire into sustenance and owning by right of discovery and
the sky; down in a distant State, remote in a lonely occupation the soil upon which he pitches his tent,
prairie, a bridge spans a narrow canyon rifted into leaves to those who succeed him a valid title to the
the lower rock; on the trackless ocean, without sail, land, and begins the long chain of ownership witha mighty ship braves the billows with five thousand out which there could be neither wealth nor insouls aboard; yonder a row of blast furnaces stab crease, nor life, nor peace.
And the "settlers" who hewed the forests of the
the night with insensate flame marking the birthplace of the modern epic of steel; over the wide Eastern seaboard, crossed the Alleghanies, spread
Nov. 3 1928.]
FINANCIAL CHRONICLE
2425.
into the Southwest and Northwest, and uniting by fill it. For this reason every new occupant chalthe banks of the Father of Waters, spread over the lenges wide attention and generally rewards and
richest alluvial plain of earth, gave value to natural holds it henceforth.
Among recent accessions, the career of Lord Curresources that, over contiguous territory, have no
parallel. And a representative republican govern- zon in a pre-eminent degree illustrates the close conment guards their homes and their acres—that feed nection that exists even in this exceptional line of
a nation. Still more, out of wealth-derived from soil what may be called patrician statesmen, between
by toil and sweat, out of mine and mart where men the goal of high position and years of direct and
conserve and exchange, out of initiative, enterprise, purposeful preparation. We have before us the first
invention, energy and acumen, comes ultimately that volume of the Life of Lord Curzon, which the Earl
capital which erects above the solid earth, splendid of Ronaldshay is writing, and Boni and Liveright
cities and in a thousand wondrous varieties the utili- are bringing out here. A second volume follows at
ties that succor life and promote civilization. There- once, and probably a third, dealing with his relation
fore, when the personal representatives of the corpo- to contemporary events, beginning with India; this
rations that provide the material agencies that bless one gives us the man in the making and has special
the citizenship of an aspiring people meet together interest. In a forceful way he is pictured from the
in conference as to ways and means to further the first making himself; but he was also making the
increase of production and service, as occurred re- career which led in a straight course to the goal he
cently in New York City, in the name and behalf had set for himself in the service of England and
of capital estimated at $10,000,000,000, it is a no- the world.
Born in January 1859, his life falls into three welltable event that confirms the sanctity of private
ownership and demonstrates the cultural value of defined periods: the first 40 years to his appointthe stored-up labor that must pass from one genera- ment as Viceroy of India in 1898; the seven years of
tion to another to light the way to yet higher achieve- his Viceroyalty to his return to England in 1905,
and the subsequent years to his death in March
ment and yet nobler service, one to another!
intangible
paper
told
titles,
in
corporate 1925. With the first period the present volume
The
stocks, are the refined evidences of capital. With- deals.
On a site in the beautiful countryside of Derbyout this, the wheels of manufacture would cease to
turn, the furrows of agriculture would still be shire which had been occupied for nearly eight cenplowed by a forked stick pulled by harnessed men or turies by an unbroken line of Curzons, and in a
lumbering oxen, sublime cities would be sleepy vil- mansion architecturally so fine that its influence
lages, homes would be lighted by tallow dips, there never was lost, his boyhood was spent. School life
would be scant bread on the mechanics table and at Eton in 1872 followed, and then Oxford in 1878,
log cabins on the fertile prairies, and transportation in all, ten creative years. Both offered the special
and exchange would be little more than the barter advantages these schools supply for such English
youths, and he took every advantage of them..
of scattered hunters and trappers.
Capitalism, thus, is the divine evolution of toil Through having a weakness and source of constant
and thought. It is the Aladdin's lamp of aggregated pain in his back, which he carried through life with
power that builds the church and the school and sus- but little intermission, he was restricted in athtains the government that protects natural human letic contests; but his outstanding abilities were at
rights—creating the ever-increasing opportunities once recognized. At Eton he won more prizes than
}comfort. Re- any scholar before had taken, and graduated with
that give to youth)ambition and to age
from
control,
individual
subject it to social- highest honors. Balliol did still more for him. His
lease it
it
make
the
theory,
of politics, chain it range of study and thought was wide; he constantly
football
istic
boards
and
of
commissions,
will
and its vital- traveled far and near, gaining knowledge of other.
the
to
ity vanishes and in its stead comes anarchy and pov- countries. He was especially gifted in public speakerty. Capital is the antecedent and progenitor of ing and Parliament was obviously the next step, asculture. Without tangible wealth, no ideal can be for men of his class, and he promptly entered the
realized, no idea can be fructified. Capital is the list, but was defeated.
The defeat affected him little. It was his first
tool of the mind and the power of the hand. It is
bread to the hungry and feeling to the heart--for venture in the business of life, and his failure did
there is nothing without great labor. Disperse it, not daunt him or change his purpose. He was
and cities fall, waste places follow, and the man who greatly praised for the ability he had shown in thewould arise and prosper must begin against the long contest; and the honesty of his subsequent disparagement of himself was difficult to be understood
upward march to the majesty of to-day!
by those who were familiar with the characteristichauteur and aloofness of his bearing in public. ThisLord Curzon's Life—the Training of All English was to a degree inborn. But he was in fact a man
Statesman.
of very unusual courage and for this reason the
of the Orient and the still force and seeming unnecessary rashness with which,
confusion
In all the
unsettled state of Europe, Great Britain steadily he grappled with grave problems in after life was
maintains her commanding position. From the first not infrequently charged against him. His course
she has produced a succession of distinguished might often have been easier and the end more readstatesmen. Of these, some have found the goal of ily gained had he been differently constituted. In
their career in the service in India, while for others the early days of his rapid public advance he wrotethat has proved the step to still higher places. It intimately of himself: "I am supposed to seek theis unnecessary to give names; they are in all the footlights. Men think me strong, arrogant, andhistories. One feature has characterized them: for self-sufficient. Little do they know that it is an
the important place there has been almost invariably invalid addressing them, having incessant pain,.
at hand the competent man thoroughly prepared to driven to the duty because it is a duty, often going.
2426
FINANCIAL CHRONICLE
back to bed for relief." The chief fact is that his
character and his plan of life were not slowly built
from year to year; both were ready-made early in
life and were little affected by external incidents
in his subsequent history. They are the key to his
career. Lord Salisbury early recognized his value
and made him his private secretary, and the way
was opened almost immediately for him to win a
seat in Parliament.
Thereafter he made his own way. His recognition was prompt, solely for his ability; he was a
younger son in a large family, having a name but
not money. That only came to him with his marriage to Miss Leiter in 1895.
His oratory was almost too perfect in his first
speech. The House wondered at the youth, but was
compelled to listen. He spoke with an assurance
and a cool fluency hard to comprehend; but beyond
question he knew his facts. He bore himself smilingly, men said, but with an unmistakable sense of
superiority, which even then was noted as likely to
excite feelings of active irritation. However, he
soon confirmed the good impression, and active service opened.
He now made a business of travel around the
world, seeking the intimate first hand knowledge
which was so essential in his place in Parliament.
He was so indefatigable in this line of investigation
that in later years when he was vehemently attacked
on the score of business incapacity it could be said
of him: "No question of foreign or colonial policy
could well come up in the House of Commons about
know the place; I
which he was not able to say
know the conditions; I know the men.'" His first
journey gave him new conceptions of England's
place in the world. His impressions of the Orient,
eager and intent as he was, were inevitably to be
changed later by more intimate acquaintance, but
the journey, beyond providing much useful information, had a determining influence on his future
course of action.
It opened a clearer and more definite path to
achieving his ambitions. His conception of his country's mission in the world as a civilizing power was
enormously enhanced. He found her representatives
in the East and their labors and administration
worthy of all praise, and, recalling the career and
prestige of the Roman Empire revealed in the capacity and career of her consuls and proconsuls. he
was impressed with the splendor of the opportunities for imperial service offered by the Eastern possessions of Great Britain to those of her sons who
were conscious of the high purpose of her mission
and the greatness of her imperial destiny. He came
home with the spell of Asia upon him and the conviction that as the work was not yet accomplished,
the call of Providence was to Great Britain as the
greatest instrument for good the world had seen.
With this conviction, he took up his work in Parliament and sought his own true line of service.
Home duties immediately occupied him. He vigorously supported the movement to remodel the
House of Lords, which occupied public attention,
and eventually wrought desirable change. He made
himself effective in debate and mingled largely in
the social and political life of the day. By temperament and tradition he was an upholder of an aristocracy, and never doubted that as founded on the
[vol.. 127.
English model it would remain, always being the
primum mobile in the evolution of the State, having no parallel elsewhere- But he made a sharp distinction between the peerage as a social order and
the peerage as a piece of legislative mechanism,
which gave him ample room for party activity.
Meanwhile, he published much about the East and
Eastern questions, seeking to fix attention upon
them. His own views gained clearness and were intelligently modified. Much remained unaltered, but
the main contention concerning Russia's attitude
and the importance of sustaining the independence
of the Asiatic states, from Japan through Central
Asia to Afghanistan and Persia, and of clarifying
British policy, was only strengthened. He sought
in every way to increase his information and extend
his influence. He was "always looking ahead";
traveled constantly, making another long tour in
the East; sought public position, becoming in 1895
Under-Secretary of State for India, working everywere to the full measure of his strength in the face
of constant weakness and pain; in fact, paying small
attention to the constant warnings of his best
friends, who came to say: "You have lived a fuller
life for the last ten years than any man alive, but
for the last nine months you have hardly known a
day's real health. You cannot carry on in this way."
But he did. He gave his whole strength to establishing England's position in the concert of Europe
in the trouble brought on by the Greeks' attack on
Crete in 1897, when he sustained Parliament and
the Government in a speech of which an old member
in the opposition said:"It is one of the strongest and
most masterful to which I have ever listened," adding: "It is a triumph of temperament as well as of
sheer intelligence," only to add: "He is self-confident, ambitious, masterful, hard—but he is determined to be a master of men; and he will be." In
the three years of his Under-Secretaryship, his position was established, and when in 1898 he was appointed by the Throne, Viceroy of India, people of
all parties confessed that he was fitted for the great
office pre-eminently over all other candidates.
He was just 40 years of age. He had married an
American lady of character, beauty and wealth.
Life had taken on new value now that she shared
it. The times were critical. Decisions of great
gravity were to be made. "Sober, middle-aged gentlemen with cool heads and large experience" were
said to be needed; his outstanding traits were well.
; but the nation stood by him, and he did not
distrust himself. His hour had come. He had prepared himself for it, and he was ready.
India represents an aggregation of men and materials accumulated in the past which, with China
adjoining, is a dominating factor in the Eastern
world. In the West, Britain has a similar position
and history, with the added fact that she represents the civilization with which Britain, its product and representative, finds herself in a responsible
and to-day a controlling position in India.
This has come to be the connection and the open
channel of influence between the West and the East.
Not only does London's pulse throb in the Bay of
Bengal but "the radiating influence of Calcutta affects the fate of the Bosphorous and the destinies
of Egypt." Therefore the character and training
of Britain's statesmen has wide significance.
Nov. 3 1928.1
FINANCIAL CHRONICLE
2437
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME. tended that in the end the antagonism of consumers will
tell, as it has in sugar and rubber, especially as competiFriday Night, Nov. 2 1928.
tion from mild coffee countries is said to be increasing, at
An early blizzard in Nebraska and Kansas with snow- close to the parity of Santos prices. But in the meantime
fall of 4 to 6 inches, high winds and rains in other parts the short interest every now and then is compelled to cover.
is light, but for all that, spot prices
of the Central West have had no harmful effect as a rule Spot trade in coffee
on business. Frosty weather at the Southwestern cotton seem in the main to be steady.
Tire prices have been reduced. Pig iron has been steady
country, nor the lower temperatures in this section, have
The output of pig iron tends to
on the other hand tended to stimulate trade either among and scrap has advanced.
jobbers or retailers. Fall goods have sold more readily, increase. In steel the tone is hopeful and a better business
especially clothing and shoes. In some parts of the coun- is reported of late in rails and cars, though the automobile
try holiday buying has already set in. Rains and snows Industry has been to all appearance buying only on a modhave been beneficial to the winter wheat belt, although erate scale. Copper has been advancing. For coal, the dethey have hampered the movement of the corn crop. In mand has improved owing to the colder weather, though as
Ohio
the Southeast the yield of corn has fallen off as com- yet there is no great activity with larger mining in
pared with last year and the cotton crop, according to and Indiana. Production is larger of petroleum and gasosome reports, is not turning out to be as large as might line. More electricity is being used, something which seems
have been the case. Grain prices have at times risen, to indicate greater industrial activity here and there.
wheat indeed quite sharply at one time, owing to the fact Worsted dress goods for the spring trade have been in betthat the market had become oversold. Export business in ter demand, while overcoatings have sold more readily for
wheat has, however, been only moderate. Exporters seem immediate delivery. Only a moderate business has been
to be holding off in hope of lower prices, owing to the done in broad silks. Raw silk has been quiet and lower.
enormous visible supply in this country and the prospect Some improvement is reported in the demand for wool,
of an increase in the Argentine crop of some 40,000,000 and it is said that the relative scarcity of some medium
bushels. An expectation of some reduction in the next grades has diverted the demand to the finer wools, which,
Canadian government estimate of Canada's wheat has had after some recent declines became steadier, as demand inlittle or no influence. Corn has been in good demand and creased. But •there is no attempt to advance domestic
In the main firm, with stocks low and i•eceipts moderate wool prices at all sharply lest the demand turn to foreign
and likely to continue so for a time, owing to the rains and wools. Mail order sales for October broke all records. This
snows. Moreover, some look for a good export demand this may fairly be considered significant of a ground swell in
winter and in general not a few think well of the value of American business, the presage, let us hope, of still better
things to come. The leather trade has been rather quiet,
corn at this level.
Cotton has fluctuated within very narrow limits, but awaiting a clearer trend of prices for hides. In some secwith some advance due to rains, frosts and a steady trade tions the shoe trade is larger with colder weather; in others
demand. There is an impression that the raw and manu- this is not the case as yet. Failures are smaller than in
factured cotton trade, not only in this country but in the previous week or in the same week last year. In New
parts of Europe, especially England, and also in Japan, York City trade the conditions are described as fair to
Is on the mend. Of late, it is true, there has been trading good. Carloadings, it is now believed, reached their apex
in cotton futures, but it has been largely of a routine kind early in October. Certainly the latest returns show a deon the eve of the election holiday when the Liverpool mar- crease from the preceding week, although it is true on
ket will be open, and also awaiting the reports on the the other hand that the total reveals a considerable increase
crop and the ginning on the 8th inst. Opinions differ wide- over the same week last year, even if it is below that of 1926.
ly as to what the crop estimate will be. Some look for an For the month of October the total is believed to have been
increase on the last estimate of 13,993,000 bales, while larger than in the same month last year. October bank
others believe it will either not be changed very much or clearings, it is pointed out, were next to a high record in
else may be reduced. Spot sales have fallen off; also October. At Detroit employment this week fell off 3,650 as
print cloths have been less active at some slight decline compared with last week, but the total is still close to 286,with second-hands competing, although finished cotton 000, an increase of 93,500 over a year ago and 68,500 over
goods and other textiles have been helped by the cooler this time at 1926.
The stock market has at times declined under so-called
weather. It was noticeable, however, that immediate de-election liquidation, but the fall of prices has not been
pre
buyers
by
of
cases
liveries are called for in many
cotton
goods, notably of the finished product, which seems to in- of great magnitude and of late there has been a steadier
diaate that not a few dealers have allowed their supplies tone, with the dying down of long selling. That the transto become considerably depleted. The national political actions dropped to-day to approximately 3,500,000 shares is
campaign has greatly, stimulated the radio business. Prices nothing to be regretted. Oil stocks moved up sharply on
have shown some upward tendency for cattle and hogs; the active trading. The rest of the list was inclined to be
supply of the latter in this country is estimated as about relatively quiet, though with a firm tone, braced by a drop
2% smaller than a year ago. Provisions have been rather in call money to 7% and the announcement that $5,000,000
1
4/
firmer in the main in response to firm prices for corn and gold is to be shipped from London to New York, with sterlhogs.
ing exchange acting as a sort of magnet at its present low
Free trading in rubber has been resumed without mak- level for the year. Banks, it was said, called about $10,000,ing much if any stir. Prices of late have been some 10 to 000 in loans to-day and money was so plentiful that to20 points lower than a week ago. Latterly trading at the wards the end to-day call loans were offered in the outrubber exchange has been quiet with manufacturers to all side market, it was said, at as low as 61,4%.
appearance indifferent about buying at this time. In LonSears, Roebuck Co. reported an increase in October sales
don and Singapore rubber has also been slow. Sugar has of 263% over sales for October 1927, and an increase of
declined somewhat under the weight of good supplies and 17.4% for the first 10 months of the year. The previous
a sluggish market. Some 200,000 tons'of Java sugar are monthly record was December, 1927, with $34,485,583. Sales
reported to have been sold to London and it is said Java for October were $37,002,370 against $29,301,592 for 1927;
Is making an attempt to capture the European market or for the ten months $268,367,828 against $228.567,254 in
else to persuade Cuba to resume restriction. Such an at- 1927. Montgomery Ward & Co. reported sales exceeded
tempt, however, will no doubt prove futile. Europe and those of December 1927, the previous high month, by more
Cuba seem to have been selling here of late. Coffee has than $1,500,000. October was the sixth consecutive month
advanced moderately despite the old rumors heard once to show an increase over the corresponding period of last
more that the Defense Committee was losing its hold. They year. The gain over October, 1927, was 23.2%, and for the
proved to be unfounded. There is evidently considerable first ten months of the year 12.1%. Sales for October were
feeling here because of the grip which the Defense Commit- $26,584,787 against $21,567,455 in 1927. Ten months, $174,tee keeps on the Brazilian coffee trade and it is con- 946,812 against $156,013,347.
2428
FINANCIAL CHRONICLE
[VOL. 127.
ak.
In Boston the Naumkeag Steam Cotton Co., which was
said to have had a very poor business in the first six
months of the year, reported doing much better the last
three months. At Charlotte, N. C., the textile situation continued to reflect the improved conditions which have developed within the past few weeks and there has been a
steady business in many fabrics, while prices have shown
a further upward tendency. The sales are estimated to have
been well in excess of full production; stocks continued
to dwindle and orders on hand are larger. Greensboro,
N. C., reports that the Proximity Manufacturing Co., operating the Cone Mills at Greensboro, have announced the
end of curtailment in the Proximity and White Oak pla,nts,
employing about 2,500 operatives. Berlin advices stated that
the Rhenish trade unions had accepted the arbitration terms
fixed by the Government, but mills still decline to consider higher wages. Locking out of more workers is threatened in order to force acceptance of the present conditions.
On the 1st inst. the Central West reported the second
Rocky Mountain blizzard struck the prairies. Strong, shifting winds prevailed, and snow storms threatened the upper Mississippi region, in Oklahoma and the Texas Panhandle. Rain, accompanied by falling temperatures, was
general over the area yesterday. Heavy snow in the Rocky
Mountain regions halted air mail traffic, made highways
nearly impassable and threatened rail transportation. Denver on Oct. 31 had the first snow of the season. Nebraska
was hit by the worst early blizzard in years. It had 6
inches of snow. Snow over western Kansas, following two
days of rainfall, was highly beneficial to winter wheat.
In Oklahoma and the Texas Panhandle temperatures fell
below freezing. The storm extended northward to South
Dakota. It was 38 to 48 degrees here and as low as 23
degrees in some parts of the United States late last week
and snow flurries in this city and nearby as well as in
the northern part of this State, Newark, N. J., Portland,
Me., and killing frost at Buffalo, N. Y., and in parts of
Pennsylvania. Of late it has been milder here with temperatures of 48 to 60 degrees. To-day they were 48 to 56.
In Boston on the 1st inst. they were 46 to 62; in Chicago
46 to 50; in Cincinnati 46 to 58; in Cleveland 48 to 54; in
Detroit 40 to 50; Kansas City 44 to 54; Milwaukee 42 to
46; Philadelphia 48 to 62; San Francisco 56 to 70; in Seattle 50 to 50; in St. Louis 52 to 54, and in St. Paul 28
to 36.
Prices.
Wholesale commodity prices increased further in September and the
Bureau of Labor Statistics Index advanced to 100.1% of the 1926 average. Increases, which were largest in farm products and foods, occurred
in nearly all groups except hides and leather and textiles, which showed
slight declines. Since the latter part of September there have been decreases in the prices of livestock and meats, grains, wool and hides, and increases in cotton, silk, rubber, and iron and steel.
Bank Credit.
Demand for bank credit for commercial purposes increased between the
middle of September and the middle of October, reflecting seasonal activityin trade and the marketing of crops. There was also a growth in loans to
brokers and dealers in securities, though total loans on securities of
reporting member banks showed little change.
During the four weeks ending Oct. 24, a growth of about $40,000,005
in the total volume of Reserve Bank credit in use was due chiefly to
continued increase in the demand for currency offset in part by a small
inflow of gold from abroad. Reserve bank holdings of acceptances Increased by about $140,000,000 during the period, while the volume of discounts for member banks declined by about $100,000,000. United States
security holdings remained practically unchanged.
Open market rates on commercial paper and on bank acceptances remained unchanged between the middle of September and the latter part
of October, while rates on security loans declined in October.
President Coolidge Finds Continued Business Prosperity
Despite National Election.
That the Presidential election has not tended to disturb the
countrys business is the view held by President Coolidge
whose observations were indicated in newspaper accounts from
Washington, Oct. 30,—one of which, that contained in advices
to the New York "Journal of Commerce" follow:
The foundation of business in this country at the present time must
be very secure not to be shaken at all by the occurrence of a Presidential election, according to an opinion held by President Coolidge as
indicated to White House visitors today. The President is keeping
close watch upon business conditions, since they relate so closely to
the future of Government finances. He is still concerned with the
prospects of the latter and frequently confers with Director of the
Budget General Lord.
All the indication that they obtain is that business is somewhat
better, on the whole, than it was a year ago, so that the President
is very hopeful in the expectation that the tax returns which are
to be made January 1 for the business of the current year, and
the revenue thereunder that will come into the Treasury in March
and in June will be sufficiently large to take care of any possible
deficit. This hope is expressed with the knowledge that Congress last
session made a considerable reduction in taxes and there are two
or three extra items for which Congress will have to provide additional funds. There is the increased remuneration to the railroads
for carrying the mails and funds for carrying on the Mississippi
River flood control work must be provided in greater amount than
during the last session. If legislation is adopted by Congress affecting Boulder Dam an appropriation in some amount will be
necessary, although that sum need not be large for the first year
of the work.
President Coolidge has been informed that some adjustments in
the operations of the Government are possible. For instance, the
work on the Ohio River has progressed so far that the present approFederal Reserve Board's Summary of Business Con- priation practically will finish it and little or nothing need be provided
ditions in the United States—Industrial Pro- hereafter. By such moves as these he hopes that the prospective
duction in Larger Volume than in any Previous deficit may be avoided entirely. The President sees that the prospects
are improving constantly and he is interested, among other things,
Month.
in the extent of our import and export business. The former brings
Volume of production and distribution of commodities in- in revenue direct through the application of our tariff rates, while
was larger than a year returns from the exports are reflected in the income tax payments.
creased seasonally in September and
ago, says the Federal Reserve Board in its summary of business conditions in the United States, made available Oct. Production of Electric Power in United States in Sep.
28. The Board's advices continue:
tember Increased Approximately 10% Over Same
There was a further advance in the general price level. Loans of
Month Last Year.
member banks in leading cities increased in September and October in
The
total production of electric power by public utility
response to the seasonal demand for commercial credit.
power plants in the United States in the month of SeptemProduction.
ber amounted to about 7,269,888,000 k.w.h., an increase of
Industrial production increased further in September, and the output
approximately 10% over the corresponding period in 1927,
of manufactures was in larger volume than in any previous month. Factory employment and payrolls also increased. Production of iron and steel when output totaled about 6,605,000,000 k.w.h., according
and of automobiles was unusually large during September and October, to the Division of Power Resources, Geological Survey.
although there has recently been some curtailment of operations Ir. these
Of the total for September of this year, 4,484,960,000 k.w.h.
Industries. There were also increases in September in the activity of the
textile, meat packing, and tire industries, and in the output of coal, were produced by fuels and 2,784,928,000 k.w.h. by water
petroleum, and copper, while lumber production showed a decline.
power. The "Survey" further shows:
Building contracts awarded, after declining in volume for three months,
PRODUCTION OF ELECTRIC POWER BY PUBLIC UTILITY POWER
Increased considerably in September and exceeded all previous records
PLANTS IN THE UNITED STATES (IN KILOWATT HOURS).
for that month. The increase was due chiefly to certain large contracts for
Change 4,i Shama
Industrial plants and subway construction. During the first three weeks
Totals by Fuels and Water Powers.
from Previous Year.
Ditislon.
of October awards exceeded those for the same period bat year, the
August.
July.
September.
Aug.
excess being especially large in the Eastern Districts.
Sept.
Department of Agriculture estimates of this year's crop yields indicate
448,788,000
484.519,000
New
England
483,386,000
+9%
+8%
year's
last
exceed
will
aggregate
the
that the production of all crops in
Middle Atlantic__ 1,729.445.000 1,831.172,000 1,828.083,000 +7%
+7%
output by about 5%. The corn crop is estimated at 2,903,000,000 bushels, East No. Central.-- 1,658,238,000 1,754,179,000 1,737,008,000 + 15% + 14%
420,054.000 455,265,000 424,240,000 +11%
+1%
or 5% above last year's production. The October 8 estimate indicated a West No.Central
South Atlantic
898,809,000 930,467,000 889,317,000 +30% +24%
cotton crop of 13,993,000 bales, or 446,000 bales less than was forecast on East So. Central___
241,883,000 258,576,000 253,225,000 —14% —19%
September 8, compared with a yield of 12,955,000 in 1927.
West So. Central__ - 348,157,000 369,095,000 360,317,000 +25% +21%
Mountain
364,953,000 366,123,000 348,746.000 +15% +17%
Trade.
1,033,078,000 1,055,220,000 967.588.000 +9%
Pacific
+8%
Department store sales increased considerably in September and were
11.8
Totalin
7,142.985,000
7,504,616,000
+12%
7.269,888,000
+10%
larger than a year ago, reflecting in part the influence of cooler weather.
Inventories of department stores at the end of the month were smaller than
The average daily production of electricity by public ut My power plants
on the same date of last year. Wholesale distribution in all leading lines in September exceeded all previous figures of average daily production,
Freight
1927.
September
in
than
except meats was somewhat smaller
with an output of 242,300,000 kilowatt hours per day, which exceeded the
oar loadings showed more than a seasonal increase in September and con- average in August by a small margin. The total output for September,
tinued large in October. Shipments of miscellaneous commodities to however, was about 3% less than for August, there being one day leas in
recent weeks have continued in larger volume than in previous years.
September than in August.
2429
FINANCIAL CHRONICLE
Nov. 3 1928.]
TOTAL MONTHLY PRODUCTION OF ELECTRICITY BY PUBLIC UTILITY
POWER PLANTS IN 1927 AND 1928.
1927.a
January
February
March
April
May
June
July
August
September
October
November
December
6,830,000,000
6,166,000,000
6,840,000,000
6.482,000.000
6,600,000,000
6,493.000,000
6,477,000,000
6,693,000.000
6,605,000,000
6,932,000.000
6,876,000.000
7,211,000,000
'rm.'
3111 2n5 nun 000
1928.
Increase
1928
Over
1927.
6%
7,265,000,000
6,871,000,000 a ll%
7.246,000,000
6%
6%
6,853,000,000
8%
7.130,000.000
8%
7,010,000,000
7.140,000,000 10%
7,504,000,000 12%
7,270,000,000 11%
Produced by
Water Power.
1927.
1928.
36%
37%
39%
40%
41%
39%
37%
36%
33%
34%,
36%
38%
38%
38%
39%
43%
45%
44%
43%
41%
38%
----
37%
a Part of increase is due to February 1928 being one day longer than Feb. 1927.
The usual seasonal decline in the production of electricity by the use of
water power, due to the decreasing flow of power streams during the summer, continued during September. Fuel burning plants have taken over
the load represented by the decrease in the output of water power plants.
The quantities given in the tables are based on the operation of all power
plants producing 10.000 kilowatt hours or more per month, engaged in generating electricity for public use. including central stations and electric railway plants. Reports are received from plants representing over 95% of
the total capacity. The output of those plants which do not submit reports is estimated; therefore the figures of output and fuel consumption as
reported are on a 100% basis.
(The Coal Division, Bureau of Mines. Department of Commerce, cooperated in the preparation of these reports.'
Loading of Railroad Revenue Freight Continues Large
but Falls Below 1926.
Loading of revenue freight for the week ended Oct. 20
totaled 1,162,095 cars, the Car Service Division of the
American Railway Association announced on Oct. 30. This
was a decrease of 28,032 cars under the preceding week this
year, decreases under the week before being reported in the
total loading of all commodities except live stock and merchandise less than carload lot freight, which showed small
increases. The total for the week of Oct. 20 was an increase
of 33,040 cars above the same week in 1927 but a decrease
of 38,846 cars under the corresponding week two years ago.
Particulars follow:
Miscellaneous freight loading for the week totaled 462.714 cars, an increase of 19,620 cars above the corresponding week last year and 6,898
cars above the same week in 1926.
Coal loading totaled 203,033 cars. an increase of 10,225 cars above the
same week in 1927 but 23,771 cars below the same period two years ago.
Grain and grain products loading amounted to 51,826 cars, a decrease
of 8,688 cars below the same week last year and 2,489 cars below the same
week in 1926. In the western districts alone, grain and grain products
loading totaled 36,952 cars, a decrease of 6,380 cars under the same week
In 1927.
Live stock loading amounted to 39,645 cars, a decrease of 1,037 cars
under the same week last year and 454 cars below the same week in 1926.
In the western districts alone, live stock loading totaled 31,907 ,cars, a
decrease of 476 cars compared with the same week in 1927.
Loading of merchandise less than carload lot freight totaled 269,584
cars, an increase of 173 cars above the same week in 1927 but 2,987 cars
below the corresponding week two years ago.
Forest products loading amounted to 65,381 cars, 2,492 cars below the
same week last year and 7,573 cars under the same week in 1926
Ore loading totaled 59,500 cars, 14,215 cars above the same week in
1927 but 5,795 cars below the corresponding week in 1926.
Coke loading amounted to 10,412 cars, 1,024 cars above the same week
in 1927 but 2,675 cars below the corresponding week in 1926.
All districts reported increases in the total loading of all commodities
compared with the same week last year except the Southern, Northwestern
and Centralwestern but the Pocahontas and Southwestern were the only
districts to report increases compared with the same period two years ago,
all the other showing reductions.
Loading of revenue freight in 1928 compared with the two previous years
follows:
1928.
1927.
1926.
3,447.723 3,756,660 3,686.696
Four weeks in January
3,589,694 3,801.918 3.677,332
Four weeks in February
4,752,031 4,982,547 4,805.700
Five weeks in March
3,738,295 3,875.589 3,862,703
Four weeks in April
4,006,058
4,108.472 4,145,820
Four weeks in May
4,923,304 4,995.854 5,154,981
Five weeks in June
3,942,931 3,913,761 4,148,118
Four weeks in JulY
4,230,809 4,249,846 4,388,118
Four weeks in August
5,586,284 5,488,107 5,703,161
Five weeks in September
1,186,598 1,102.994 1,174,928
Week of October 6
1,190,127 1,120,007 1,202,780
Week of October 13
1,162,095 1.129.055 1,200,941
Week of October 20
the business picture is "generally favorable." These are the
conclusions of Willis H. Booth, President of The Merchants'
Association, who made public on Nov. 1 through "Greater
New York," bulletin of The Association, the results of a
world trade survey. Mr. Booth, who is also Vice-President
of the Guaranty Trust Company, wrote in part as follows:
"A survey of business conditions throughout the world shows a
generally favorable picture, with evidences of continued improvement
in trade and further progress in the settlement of troublesome international problems.
"In the United States, the general business situation is undeniably
strong. Industrial prosperity is reflected in the high output of the
steel, building and automobile industries. Retail trade reports show
that the output of the factories is moving readily through the channels of distribution. Underlying this situation, and warranting optimistic expectations concerning the future, is the favorable crop outlook, combined with a higher level of farm prices than has been
the rule in recent years. The principal unfavorable factors in the
business prospect are the high level of money rates, the speculative
situation in the stock market, and the weak position of a few leading industries, notably textiles and coal.
"The topic of greatest interest in European finance is the possibility of final settlement of the reparations debt. Sponsored by the
initiative of S. Parker Gilbert and confirmed by various groups of
international bankers, including American bankers, a conference of
the Allied nations to consider the problem is being negotiated by
England and France. The project is based on the belief that, unless
Germany be given a more definite statement of the total amount
of reparation payments than was provided in the Dawes plan, a
serious burden will be placed on the future economic recovery of
that country. Closely allied with the fixation of a total sum for
reparations, is the possible commercialization of the debt through the
sale of reparation bonds in the world's financial markets.
Further Increase in Orders for Electrical Goods in
Third Quarter.
New orders booked during the third quarter of 1928, as
reported to the Department of Commerce by 86 manufacturers of electrical goods, were $264,419,328, as compared with $244,467,209, for the second quarter of 1928
and $235,847,857 for the third quarter of 1927. The Department under date of Oct. 29, presents the following totals
of bookings for each quarter since the beginning of 1923
not as a complete statement of the industry but as probably
sufficiently representative to indicate the trend:
ORDERS FOR ELECTRICAL GOODS.
Quarlet.
lst____
2n4 _ _ _
3rd ......
4th ___
1923.
1924.
1925.
1926.
1927.
1928.
$
$
$
$
$
$
225,399.383 228,760,838 233,023,182 262,677,736 243,651,415 242,875,462
240,542,824 221,167,876 227,502,652 248,000,075 236,427,121 *244,467.209
201,910,099 185,747,314 232,933,532 241,114,209 235,847,857 264,419,328
218,165,415 231,470,552 244,597,050 260,078,082 239,999,298
Total 886.017.721 867.146.580 938.056.416 1011870102 954.925.691
• Revised.
Monthly Index of Real Estate Market ActivityRevised Table Shows Index of Deeds Recorded in
Period 1924-1928.
The revised monthly index number of real estate market
activity, compiled by the National Association of Real
Estate Boards and which is based upon the number of deeds
recorded each month during the year 1926, has just been
computed from January 1924 to date. The percentage for
each month is obtained by dividing the total number of
deeds recorded each month in all cities reporting by the
number of deeds recorded in the same cities for the corresponding month of 1926. In indicating this under date of
Nov. 23 the Association says:
The former series index number, based upon monthly reports received
from 41 cities, was compiled from the total number of transfers and conveyances reported for each city. The revised index is based solely upon the
number of deeds recorded, and is compiled from official reports from 61
cities.
The index for September,new series, is 83.8.
The revised monthly index from January 1924 to date is as follows:
1924. 1925. •1926. 1927. 1928.
91.3
89.6
January
97.9
97.7
100
94.6
95.7
100
90.5
92.7
February
88.6
98.0
100
91.7
85.2
March
99.8
102.4
100
90.6
82.6
April
100
91.2
90.2
100.9
107.9
May
41,755,949
42,524,810
Total
43,151,278 June
97.4
100
87.8
84.2
88.2
106.8
100
94.1
94.4
84.3
July
96.1
91.3
96.3
107.0
100
August
98.0 109.0
100
91.2
Further Decline in Detroit Employment.
83.8
September
103.0
112.6
100
94.7
_
October
92.5 105.7
100
96.9
The Detroit Employers Association reports employment November
99.9
109.6
100
95.7
December
figures for week ended Oct. 30 as 285,936, a decrease of • Activity for each month of 1926 is taken as the normal of activity for that month.
3,648 from last week but an increase of 93,525 over the
Problem of Unemployment Reviewed by McGill Corncorresponding period of last year.
mnity Service-Labor Unrest Looked for in 1929Consideration of Subject Urged Upon Business
General Business In Present Pre-Election Period "UndeMen.
niably Strong" According to Willis H. Booth of MerDiscussing the problem of unemployment, the McGill
chants Association-Survey of World Conditions.
Six days before election, the general business situation in Commodity Service of Auburndale, Mass., makes the statethe United States is ."pndeniably strong." Conditions warrant ment that "during the past two years no complaint can be
optimistic expectations for the future. Throughout the world registered about the total volume of business, yet employ-
ment and payrolls have slowly declined." While the seasonal increase in industrial activity is expected to absorb
a great number of workers, this, it is stated, "is really only
a temporary halt in the general downward trend of employment." According to this study of the problem; "it
would not be at all surprising to see more labor unrest in
1929." The problem is pictured as calling "for serious
consideration from every executive from the standpoint of
its effect on general business and his own specific line."
We quote the article as it appeared in the Oct. 18 circular
Issued by the McGill Commodity Service:
There is a slogan which every purchasing agent should adopt through
this period of the survival of the fittest-Keep Informed, All basic subjects
which directly influence business should be conscientiously studied. There
are many to-day. In recent months we have featured the points that
business is entering a new era, that the credit situation is changing,
and a record number of mergers reflects new competition. Yet another
subject of outstanding importance is the problem of unemployment which
is not just a temporary condition.
It is serious when several million people who are qualified for a place
;n industry are without work. During the past two years no complaint
and
can be registered about the total volume of business, yet employment
payrolls have slowly declined. There are several answers to this unusual
new
situation such as more efficiency in business-improved methods,
Inventions, and labor-saving devices-which have all displaced. many
workers.
new
The result is tkat after each depression, particularly since 1920,
reproduction records have been reached, yet fewer workers have been
was
quired. • History shows that in years gone by a problem of this kind
tires,
automobile,
solved through the introduction of new industries-the
industry to
rayon, radio, and aviation. To-day this country needs z new
little on the
absorb one million workers, but unfortunately there is very
direct
business horizon in an industrial way which holds the possibilities of
assistance.
labor
of
Abnormal unemployment has not yet caused a growing number
disturbances. The strike record for 1928 is above a year ago, but comin a period
pared with previous years, it is the lowest since 1914. We are
supply exceeds
of labor peace which is usually the ease when the labor
and indemand. The low number of voluntary quits from both business
the fivedustry reflects this condition. There is now more talk about
in
adopted
successfully
been
day week as one remedy. This method has
some industries but the merits of this policy are yet to be proven.
that
When a survey is made of employment by industries, it is obvious
showing
such lines as automobiles and iron and steel make a much better
in
Even
line.
than textiles and leather, but there is a surplus in every
building there is a trend of unemployment which could easily become
serious. The seasonal increase in industrial activity which is ahead will
naturally absorb a great number of workers, but this is really only a
temporary halt in the general downward bend of employment.
When wage rates, the purchasing power of the dollar, and cost of living
are compared, it is found that wage rates since early spring have declined.
The cost of living, due to lower rentals and foodstuffs, has dropped. The
purchasing power of the dollar has remained steady. This has helped in
keeping the number of labor disturbances at low ebb. The trouble is that
future changes will probably be less favorable.
The danger doesn't lie in a lowering of the immigration bars but through
an increasing amount of unemployment later on when the volume of business is on a declining and not an advancing scale. It would not be at
all surprising to see more labor unrest in 1929. This employment problem calls for serious consideration from every executive from the standpoint of its effect on general business and his own specific line.
Wholesale Trade in New York Federal Reserve District
in September Gains as Compared with August.
In surveying wholesale trade in the New York Federal
Reserve District the November 1 Monthly Review of Credit
and Business Conditions by the Federal Reserve Agent at
New York says:
"Reflecting a continued heavy demand for industrial equipment, machine
2 times as
tool orders increased further in September and were nearly 21/
large as in September 1927. Sales of wholesale paper dealers in this
previous
the
with
district also increased considerably, as compared either
month or a year ago. Although there were seasonal increases over August
in other lines, sales in most cases showed at least slight declines compared
with a year ago, some of which may be attributed to the shorter business
month this year.
"Stocks of silk goods and drugs remained considerably larger than last
year, and stocks held by hardware dealers eontinized to be slightly larger;
stocks of groceries, cotton goods, and shoes, however, were smaller than
a year ago. Collections in most lines were somewhat slower than in
September 1927.
Percentage Change Percentage Change Per Cent of AcSeptember 1928 coynts Outstanding
September 1928
Compared with
Aug. 31
Compared with
September 1927. Collected in Sept.
August 1928.
Commodity.
Stock
End of
Month.
1927.
1928,
-4.0
-2.7
-1.8
-6.9
75.2
36.2
69.3
35.1
.
---
-10.4
-6.3
32.6
31.9
-0.7 +14.7
-1.6
-6.2 -24.3 -15.3
-0.8 +12.1
-2.5
+2.5
-9.9
-0.5
____ +149.8
____
____
-2.6
____
+24.2
____
+3.8{ -3.6 } -0.9
-22.2
44.3
34.6
42.9
45.0
4-3-i
30.3
41.4
94.0
63.4
55.1
23.4
64.9
60.0
23.9
49.2
+0.1
+2.9
Weighted average
• Quantity not value. Reported by the Si k Association of America.
x Reported by the National Machine Tool Builders' Association,
46.9
Net
Sales.
+3.3
-7.6
+8.3
-9.4
Stock
End of
Month.
Groceries
Men's clothing
Women's dresses
Women's coats and suits_
Cotton goods+2.2
Jobbers
Commission
-0.4
Silk goods
-13.8
Shoes
+22.8
Drugs
+12.0
Hardware
+10.0
Machine tools (1)
+3.8
Stationery
+27.6
Paper
+10.7 1
Diamonds
+27.9 f
Jewelry
[VoL. 127.
FINANCIAL CHRONICLE
2430
+3.6
Net
Sales.
____
-4.1
Wholesale Trade During September as Reported to
Federal Reserve Board-While Volume Approximates that of August, Falling Off is Shown when
Usual Seasonal Increase is Taken into Consideration.
In stating that wholesale distribution in the United States
continued in approximately the same volume in September
as in August the Federal Reserve Board notes that when
allowance is made for the seasonal increase which is usual
In this month wholesale sales in nine lines reporting to the
Federal reserve system, show a decline of 4% from August.
Meat-packing and furniture firms reported the largest increases in sales in September as compared with the preceding month, while sales of boots and shoes showed the largest
decline. The Board's summary for September also has the
following to say:
In comparison with the same month a year ago, the volume of wholesale
distribution in September was slightly smaller. Seven of the nine reporting line reported decreases in sales, varying from leas than 2% in the
case of groceries to about 14% in the case of shoes; while meat-packing
and furniture firms showed substantial increases.
The sales of reporting firms in six of the nine lines of trade showed
decreases during the first nine months of this year as compared with the
same period in 1927. Sales of groceries, meats and drugs were hrger
than last year.
Current developments in wholesale trade are summarised in the following
table:
Index Numbers.
Adjusted for
First Nine Seasonal Variations
September 1928
Mos, 1928 (1923-1925)010.
Compared with
Compared
with
August
September First Nine September August
1928,
1927. Mos. 1927. 1928.
1928.
P.C.Inc.(+)or Dec.(-)its Sales.
Groceries
Meats
Dry goods
Men's clothing
Women's clothing
Boots and shoes
Hardware
Drugs
Furniture
-0.5
+11.0
-4.4
-7.5
-4.6
-8.0
-3.5
+4.0
+20.8
-1.6
+11.7
-7.7
-2.7
-7.4
-13.7
-6.3
-2.4
+11.9
+0.3
+3.4
-5.5
-3.9
-9.9
-3.5
-2.1
+4.0
-3.9
92
122
84
89
62
DO
92
112
116
100
116
90
Total nine lines
+0.8
-2.0
-1.5
94
98
Do
68
109
95
117
106
September sales of agricultural implements were smaller than those of
August, as is usual for the season, and continued in larger volume than
last year, according to the reports from 81 manufacturers compiled by
the Federal Reserve Bank of Chicago. Orders for machine tools continued
in larger volume than last month, and were more than twice as large
as a year ago.
Stooks of wholeesale firma-Smaller stocks of merchandise were carried
in September than in August by reporting wholesalers of dry goods, boots
and shoes, hardware, drugs and furniture, while larger stocks were carried
by wholesale grocers. As compared with September, 1927, larger inventories were renorted in four lines of trade-groceries, boots and shoes,
drugs, and furniture. Stocks of dry goods and hardware, however, were
smaller.
More detailed statistics, by districts and for preceding months, are
given on the following pages:
WHOLESALE DISTRIBUTION BY LINES.
(Index numbers, based upon dollar value of sales. Monthly average 1923-25=100.)
Dry Men's We- Boots HardFurniTotal GroNine ceries. Meats. Goods Cloth- men' and ware. Drugs lure.
ing. Cloth', Shoes
Lines.
With adjustment for se atonal variati on192784
77
113
83
93
January... 94
97
75
87
112
93
February.. 95
67
96
101
108
90
March _ _ .. _ 96
86
93
87
95
68
111
April
87
69
109
87
95
97
May
65
104
88
93
90
98
June
90
79
88
102
95
91
July
102
101
72
109
97
August._._ 100
109
91
92
94
66
September.. 96
91
81
90
54
109
86
October
94
105
89
86
November. 95
67
92
61
109
87
93
December _ 93
192889
94
99
93
70
106
January
88
99
98
113
97
70
February
109
83
94
97
55
March.._ _ 93
112
78
77
April
93
57
89
99
62
109
86
96
96
May
112
79
76
June
94
49
89
93
91
July
111
80
79
83
100
116
98
August
90
90
68
92
122
84
September. 94
89
62
Without adjustment for seasonal variation-.
1927fanuary
86
71
113
78
86
65
91
February
81
107
88
123
95
103
March
94
104
95
138
108
April
90
90
64
104
76
85
95
39
109
76
88
May
52
June
87
101
28
106
78
46
Filly
92
43
104
81
88
78
August._ 111
97
98
111
125
165
102
113
ieptember. 112
140
95
117
106
Dctober
102
87
122
99
101
45
qovember_ 93
61
88
100
101
December _ 82
90
39
103
48
70
192865
ranuary
87
76
106
85
85
88
i•ehruary_. 93
85
128
108
89
89
starch
131
105
87
99
95
53
1pril
75
70
88
105
86
35
day
57
75
96
109
89
21
39
'une
71
97
114
84
46
'uly
68
113
74
92
87
92
148
110
109
iugust
118
101
88
137
105
130
ieptember. 109
100
.'
£98
98
101
96
98
102
102
109
103
99
109
89
994
89
96
95
87
92
95
95
106
116
112
110
97
94
110
90
134
111
104
91
105
101
92
93
98
94
91
92
92
97
99
94
100
97
104
103
106
106
104
106
105
112
114
111
112
106
115
110
96
94
113
82
123
109
90
92
93
91
87
94
92
91
95
92
108
110
110
111
117
110
107
117
112
92
87
111
100
111
85
107
122
127
114
110
82
82
82
102
96
93
96
90
98
106
105
98
90
102
95
117
108
98
99
100
110
122
128
113
99
86
98
114
97
93
90
84
III
117
118
105.
94
87
111
99
114
77
98
119
110
82
82
95
89
97
95
90
96
100
106
101
121
113
110
103
102
115
119
M
78
96
107
88
87
83
78
108 2
131
sa
Nov. 3 1928.]
FINANCIAL CHRONICLE
CHANGES IN SALES AND STOCKS OF WHOLESALE FIRMS BY LINES
AND BY FEDERAL RESERVE DISTRICTS.
(Increase (+) or Decrease (-) Per Cent.)
Line and Federal
Reserve District.
Percentage Changes in sales by reporting retail firms are given in the
following table:
Sales-Sep ember 1928 Stocks-September 1928
Compared with
Compared with
Number of Stores.
No.
of
Firms.
Aug. 1928. Sept. 1927. Aug. 1928. Sept. 1927.
-7.7
-3.0
-17.2
,-0.4
-28.6
-28.6
+3.3
-9.5
-1.4
-10.2
-3.9
-8.0
+1.2
-13.8
+9.0
+8.2
-14.5
+10.2
-5.4
-3.0
-4.0
-4.2
-13.7
-16.9
-24.3
-15.6
-8.9
-20.4
-19.2
-7.8
-7.3
-25.0
- '1.8
+3.5
+12.0
+1.7
+7.3
-0.9
+4.3
+5.2
-6.3
+14.0
+8.1
+9.3
+5.1
-6.3
-9.9
-12.5
-6.6
-22.5
-5.0
+2.0
-17.9
+6.0
+2.9
-0.8
+1.0
+4.0
+22.8
-2.1
-2.6
-1.7
-4.7
-2.3
-2.9
-8.1
-0.5
+7.2
-2.4
-0.8
-4.6
-3.6
-13.0
-15.6
-4.7
-5.8
-11.0
-0.8
+4.6
+20.8
+6.7
+7.3
+22.2
+21.7
+13.4
+13.5
+11.9
-10.9
+1.7
+18.3
+14.1
+12.8
+14.6
-21.1
-60.0
-8.4
+10.0
-6.0
+1.5
Per Cent.
+0.8
-11.6
-6.9
+2.4
-2.6
-0.1
+2.6
+1.9
+11.9
-4.0
+9.7
+8.7
+10.8
-9.2
-5.3
-0.5
-9.0
-9.6
-7.9
-10.5
-11.6
-2.3
-9.7
-3.1
-1-2:5
-8.9
--6.2
+9.2
-7.4
-15.3
+21.6
-2.8
-----9:4
+7.0
=-4:6
.;-6:5
-14.3
-11.0
-11.4
+28.4
+30.0
+14.1
-2.7
-0.5
-2.0
-4.9
+2.5
-4.8
.-9-..2
-0.3
-3.5
-0.9
-2.0
-3.2
-3.3
-5.1
----3.3
-2.6
-8.1
+5.9
-3.0
-6.3
+5.4
-7.8
-1.5
-2.5
+4.9
+12.1
-13.3
-5.2
+2.0
-4.8
-9.9
-7.8
-4.9
+1.2
____
-1.1
---+1.2
-3.9
+4.5
-.
3.6
-4.4
+0.3
-0.7
+1.1
-3.3
+6.9
-14:6
-F-1i3:2
..-8
5-..4
i
+3.1
+13:5
-3.0
+12.5
+-2-9.0
-14.8
+7.8
+3.8
-4.5
-15.8
-9.2
-2.6
+4.2
-24.4
5.1
-1--0:i._
-{-1.1
-5-.6
4-.3
+2.5
+10.3
+0.6
-3.2
+2.2
-10.4
-4.1
-6.3
-0.4
b-0.7
-1.6
+14.7
+18.7
+3.3
+10.0
+149.8
___ _
+10.7
-3.6
+27.9
+9.1
-22.2
-6.7
d +3.8
-0.9
d-0.9
+3.3
+24.6
-0.5
+4.1
--5.8
+2.3
-2.3
-3.3
+17.5
+16.6
+10.9
+4.5
+2.6
+9.6
+0.4
+6.5
-11.9
-9.7
+3.3
+11.6
+0.6
a Sales of agricultural implements for the United States are compiled by the
Chicago Federal Reserve Bank.
b Stocks at first of month-quantity, not value.
c Based upon indexes of orders furnished by the National Machine Tool Builders'
Association.
d Includes diamonds.
Federal Reserve Board's Survey of Retail Trade in U. S.
in September-Increases for Month and First Nine
Months.
Sales of department stores reporting to the Federal Reserve
System increased by more than the usual seasonal amount
between August and September, according to the Federal
Reserve Board's index, which is adjusted for seasonal variation and for differences in the number of business days. As
coinpared with a year ago, the actual dollar volume of sales
for the month increased by 6.3%. For the first nine months
of 1928 thero was a slight increase in sales over the corresponding period of last year. The Board's survey, issued
Nov. 1, continues:
Sales of mail order houses and of chain stores in all reporting lines except
cigars showed increases from last year both for the month of September
and for the first nine months of the year.
Department stores_ _
Chain storesGrocery
Five-and-ten
Apparel & dry goods
Drug
Cigar
Shoe
Candy
Mail order houses._ _ _
34
14
5
13
4
7
4
4
Sept.
1928.
Sept.
1927.
Percentage of Increase 1+) or
Decrease in Sates.
September 1928 First9 Mos. 1928
Compared with Compared with
Sept. 1927. First 9 Moo.'27.
510
510
+6.3
+0.8
29,809
3,126
1,247
1,020
3,608
673
326
a
28,892
2,878
1,056
868
3,457
610
280
a
+16.7
+12.4
+24.3
+20.1
+21.7
+8.9
+20.4
+15.9
-4.6
+9.9
+4.6
+10.9*
+21.1
+3.1
+21.1.
• Increases in dollar sales of mail order houses reflect in part the establishment
in recent years of additional retail outlets. a Not reported.
All of the Federal Reserve districts reported department store sales in
larger volume in September than in August, when allowances are made
for thE usual seasonal variations.
Stocks.-Smaller inventories than in September of last year were tarried
by department stores in ten Federal Reserve districts. Inventories 1st the
Chicago and Kansas City districts were the same as a year ago.
DEPARTMENT STORE SALES AND STOCKS BY FE4ERAL
RESERVE DISTRICTS.
(Index numbers. 1923-25 equals 100.)
Federal Reserve District Number.
U.S.
Sales (unadju
1927-July- _ _
Sept_ _ _
1928-July- - Aug- - Sept.- Sales (adjuste
1927-July _ .._
Aug _ _.
Sept- - 1928-July _ __
Aug_ _ Sept- - Stocks (unadj
1927-July _ __
Aug_ _ _
Sept- -1928-July_ __
Aug_ _ _
Sept....
Stocks (adjust
1927-July. __
Aug...
Sept_ __
1928-July. _ _
Aug...
Sept_ __
1
0,z5.888 StooSocomoo...o to-4-1=m,i
v000t,a,g,
-4.4
-0.2
+23.0
+10.9
+6.4
+4.4
+13.8
-15.6
-12.7
-14.4
-5.4
+2.1
Per Cent.
+4.7
•'.11.7
+3.6
+7.9
-2.8
+3.4
+35.3
+2.7
--I.0
+0.0
+7.0
+6.7
-0.4
.
Per Cent.
-1.6
-4.9
-4.0
+2.7
+0.1
-1.6
-7.2
-3.6
-2.7
3.0
+3.4
Copcow.v..44,100MOD..P1=0•WO=0,P,
Per Cent.
-0.5
-2.0
+3.3
+2.1
+2.2
+5.1
+1.0
-2.1
+3.5
-6.0
-12.9
+6.9
-3.9
.......m...
0.,—,
oSco8cDoi..o..5mcEw000,—o—om
GroceriesUnited States
Boston District
New York District
Philadelphia District
Cleveland District
Richmond District
Atlanta District
Chicago District
St. Louis District
Minneapolis District
Kamm City District
Dallas District
San Francisco District
Dry GoodsUnited States
New York District
Philadelphia District
Cleveland District
Richmond District
Atlanta District
Chicago District
St. Louie District
Kansas City District
Dallas District
San Francisco District
ShoesUnited States
Boston District
New York District
Philadelphia District
Cleveland District
Richmond District
Atlanta District
Chicago District
St. Louis District
Minneapolis District
San Francisco District
HardwareUnited States
New York District
Philadelphia District
Cleveland District
Richmond District
Atlanta District
Chicago District
St. Louis District
Minneapolis
Kansas City District
Dallas District
San Francisco District
DrugsUnited States
New York District
Philadelphia District
Cleveland District
Richmond District
Atlanta District
Chicago District
St. Louis District
Kansas City District
Dallas District
San Francisco District
FurnitureUnited States
Richmond District
Atlanta District
Chicago District
St. Louis District
Kansas City District
San Francisco District
A gricultural ImplementsUnited States a
Minneapolis District
Dallas District
Paper and StationeryNew York District
Philadelphia District
Atlanta District
San Francisco District
Automobile Supplies8an Francisco District
Cotton JobbersNew York District
Silk GoodsNew York District
Cotton Commission HousesNew York District
Machine ToolsUnited States c
DiamondsNew York District
JewelryNew York District
Philadelphia District
Electrical SuppliesPhiladelphia District
Atlanta District
Chicago District
St. Louis District
San Francisco District
2431
2
74
84
106
77
78
110
3
4
65 78
73 93
83 95
64 78
65 85
88 101
5
6
72
80
91
75
78
96
76 82 68
86 99 90
97 114 97
77 91 73
86 102 83
98 136 107
7
8
8
.10
11
12
75 68 69 89
92 83 80 114
93 96 105 111
68 71 71 92
80 85 80 116
96 102 112 113
108 96 107 103 105 112 100 97
119 100 110 III 110 120 117 103
117 98 102 103 107 114 96 95
112 95 106 107 106 124 108 89
111 89 101 109 110 123 108 89
127 108 114 114 112 142 110 102
__
__
__
__
__
100
110
102
103
110
113
111
116
120
116
119
127
95 89 93 94 91 93 95
99 91 97 93 96 99 99
109 101 107 107 107 108 108
96 85 91 91 93 94 87
100 86 95 92 95 102 93
106 92 100 102 103 108 98
83
87
94
78
81
84
101
116
123
106
118
123
79
88
96
72
82
88
101
103
108
101
104
106
104
105
103
105
106
101
88
88
90
83
81
80
__
__
__
....
__
__
85
86
88
78
80
81
105
104
104
105
105
102
97
97
97
93
92
88
100
101
103
98
98
Z96
103 99 101 101
101 98 100 97
102 101 102 102
100 101 102 93
100 97 103 93
97 g98 102 93
• Monthly average 125 equal 100.
1 Boston; 2 New York; 3 Philadelphia; 4 Cleveland; 5 Richmond; 6 Atlanta
7 Chicago; 881. Louis; 9 Minneapolis; 10 Kansas City; 11 Dallas; 12 San Francisco.
CHANGES IN SALES AND STOCKS 05' DEPARTMENT STORES,
SEPTEMBER 1928.
(Increase (+) or Decrease(-) Based on Value Figures.)
Changes in Sales.
Federal Reserve
District and City.
Changes in Stocks.
Jan.Ito Sept.30
September 30 1928
Sept. 1928
1928 Compared
Compared wills
Compared with with Jan. 1 to
Sept. 1927.
Sept. 30 1927. Sept. 30 1927. Aug. 31 1928.
Boston:
Per Cent.
Boston
-1.2
Outside Boston_
-0.6
New Haven_ _ _ _
+0.6
Providence_
-2.2
Total
-1.0
New York:
New York
+4.5
Bridgeport
+13.7
Buffalo
+5.6
Newark
+3.4
Rochester
+7.5
Syracuse
-2.5
Other cities_ _
+6.9
Total
+4.3
Philadelphia:
Philadelphia_ _ _
+5.3 .
Allentown
+2.6
Altoona
+30.6
Harrisburg
+24.2
Johnstown
-1.3
Lancaster
+7.9
Reading
+4.3
Scranton
-7.8
Trenton
-2.7
Wilkes-Barre .
+0.7
Wilmington__
+5.9
Other cities_
+9.6
Total
+5.8
Cleveland:
Cleveland
+8.2
Akron
+19.6
Cincinnati
+7.7
Columbus
+7.2
Dayton
+5.9
Pittsburgh
+4.4
Toledo
+19.5
Wheeling
+12.2
Youngstown _ ....
+4.3
Other cities_ _
+6.4
Total
+7.8
Richmond:
Richmond
+6.9
Baltimore
+4.0
Washington_ .. _ _
+6.5
Other cities_ _
' -2.5
Total
+4.6
Atlanta:
Atlanta
+8.8
Birmingham_ _ _
+6.4
+0.8
Chattanooga_
Nashville
+12.0
New Orleans_.
-5.2
Other cities_ _
-2.8
Total
+2.0
Per Cent.
-3.0
-1.5
-2.1
-1.7
-2.5
Per Cent.
-9.4
-4.7
-5.4
-5.2
-7.5
Per Cent.
+6.7
+14.0
+7.6
+14.2
+9.7
+0.6
-0.3
-2.7
+4.4
+0.9
-2.3
+1.8
+1.8
-2.4
-5.5
-4.0
-4.5
-3.1
-2.4
-7.6
-3.2
+4.6
+8.6
+11.9
+5.2
+5.1
+7.2
+8.8
+5.6
-3.7
-3.6
-3.3
+4.4
-9.3
+1.4
-0.6
-6.7
-1.5
+0.5
+4.4
-4.1
-3.2
-9.3
-6.8
-4.4
+0.2
-24.3
-7.4
-1.9
-6.6
-11.0
-1.2
-0.2
-5.1
-8.1
+7.0
+4.2
-1.6
+8.7
+4.5
+14.7
+11.9
+9.2
+7.6
+11.2
+14.4
+5.9
+7.6
+1.6
+9.9
+0.7
+1.5
+0.9
-5.2
-6.7
-1.3
-1.0
-3.8
-0.5
-6.3
+91.4
-0.2
-2.4
+0.4
-12.5
-9.3
-14.6
-11.2
-8.7
-6.9
+3.4
+6.0
+10.5
+5.1
+8.7
+6.6
+1.3
+11.5
+6.3
+6.1
+5.9
+3.2
-0.9
+2.9
-6.2
+0.4
-6.9
-3.2
-6.5
-2.8
-4.7
+9.8
+11.6
+9.2
+8.4
+10.1
+14.8
+6.2
-3.2
+7.7
-3.1
-3.6
+2.7
-0.0
-11.2
-1.9
+5.0
-6.2
-3.5
-4.1
+17.1
+6.6
+7.5
+9.5
+5.2
+15.0
-1-0 a
CHANGE IN SALES OF DEPARTMENT STORES, BY DEPARTMENTS.
(Increase (+) or decrease (-) in sales in Sept. 1928 compared with Sept. 1927.
Changes in Stocks.
Changes in Sales.
Federal Reserve
District and City.
[VOL. 127.
FINANCIAL CHRONICLE
2432
September 30 1928
Jan.lto Sept.30
Compared with
1928 Compared
Sept. 1928
Compared with with Jan. 1 to
Sept. 30 1927. Sept. 30 1927. Aug. 31 1928.
Sept. 1927.
Chicago:
Chicago
Detroit
Indianapolis
Milwaukee
Other cities__ _ _
Total
Per Cent.
+13.9
+22.1
+9.7
+6.1
+13.4
+14.9
St. Louis:
St. Louis
Evansville
Little Rock_ _ _ Louisville
Memphis
Total
+11.9
+17.0
+10.0
+1.4
-1.3
+8.7
Minneapolis:
Minneapolis._ _ _
Duluth-Superior
St. Paul
Total
Per Cent.
+3.9
+15.0
-0.1
+1.9
+1.3
+5.4
Per Cent
+12.7
+3.6
+3.5
+5.4
+6.6
+8.4
Per Cent.
+3.2
+11.9
-4.8
-5.2
-4.5
+1.8
+2.4
+2.3
+2.5
-4.3
+3.7
+2.0
-12.7
-1.0
+1.3
-2.3
-5.7
-9.0
+2.8
+33.1
+3.0
+14.7
+15.3
+6.3
-4.0
-1.0
+15.0
+4.0
-9.0
-3.0
+1.0
-3.0
-14.0
+1.0
-8.0
-9.0
+1.0
+6.0
+5.0
+4.0
Kansas City:
Kansas City....
Denver
Lincoln
Oklahoma City_
Omaha_ _,...
-Topeka
Tulsa
Other cities_ _ _ _
Total
+4.7
-0.1
+3.0
+19.0
+4.9
+6.8
+13.5
+11.5
+6.4
+1.4
-2.6
+3.8
+5.8
+5.1
+0.2
+0.6
+5.2
+0.7
-5.0
-8.3
+1.1
+12.1
-1.2
-7.7
+20.8
-4.2
-4.2
+2.7
+2.2
+9.0
+5.4
+4.2
+6.9
+9.9
+6.6
+4.2
Dallas:
Dallas
Fort Worth__ _ _
Houston
San Antonio_ _ _
Other cities_ _
Total
+9.0
+2.7
+10.9
+6.2
+3.8
+7.0
-2.0
+3.2
+1.7
-0.3
+3.0
+0.8
-12.5
-3.0
-4.4
-18.8
+1.6
-7.4
+6.1
. +7.7
+4.1
+9.7
+6.9
+7.2
Ban Francisco:
San Francisco
Los Angeles__ _ _
Oakland
Salt Lake City_
Seattle
Spokane
Other cities_
Total
+2.8
-1.7
+10.1
+9.7
+8.7
-0.9
+2.7
+1.4
+2.4
+0.2
+5.4
+8.1
+9.6
-0.9
+0.9
+2.2
-5.0
+3.3
-9.3
-15.3
+5.4
-7.7
-5.6
-2.0
+3.4
+0.7
-0.9
+8.2
+3.9
+0.7
+4.4
+2.6
United States.._ _
+6.3
+0.8
-5.1
+6.1
Sept.
1928.
August
1928.
Chain stores:a
205
200
Grocery
133
144
Five-and-ten
197
246
goods
dry
and
Apparel
169
164
Drug
104
105
Cigar
109
130
Shoe
123
122
Candy
127
143
Mail order houses_b
a For number of firms reporting and number
preceding page. b Including sales made through
Sales 1Vith Seasonal
Adjustment.
Sept.
1927.
Sept.
1928.
August
1928.
Sept.
1927.
171
128
198
137
106
108
119
118
222
165
248
177
111
145
127
154
215
144
230
169
105
131
122
160
182
141
192
141
107
115
118
122
of stores opera ed, see table on
branch stores.
R 1928.
STOCK TURNOVER OF DEPARTMENT STORES, SEPTEMBE
I
Rate of Stock Turnover.*
Rate of Stock Turnover.*
Federal Reserve
Federal Reserve
Jan.1-Sept.30
September.
and
District
District and September. Jan.1-Sept.30
City.
City.
1928. 1927.
1927.
1928.
1927.
1928.
1927,
1928.
Boston.36
Boston
OutsideBoston .28
New Haven- - .26
Providence,.__ .27
33
Total
New YorkNew York__ .36
Bridgeport___ .31
30
Buffalo
.37
Newark
.31
Rochester_
35
Syracuse
Other cities_ _ _ .20
.34
Total
Philadelphia
.32
Philadelphia
Allentown._ .17
.26
Altoona
Harrisburg... .25
Johnstovrn_ _ _ .21
Lancaster_ _ _ _ .20
.18
P eading
.24
Bcranton
26
Trenton
Wilkes-Barre_ .21
.20
Wilmington
Dther cities... .23
.29
Total
Cleveland.33
neveland
26
tkron
.26
.`,Incinnati
.28
Dolumbus
28
)ayton
.26
lttsburgh_
.29
roledo
Vheeling -----27
(oungstown__ .34
)ther cities,..... .20
28
Total
Richmond'ichmond____ .31
1altImore_ ___ .25
Vashington_ _ .29
)ther cities_ .19
.26
Total
Atlanta.27
Manta
.22
lirmingham
Chattanooga,. .18
.34
.27
.25
.26
.31
2.96
2.29
2.15
2.14
2.68
2.98
2.32
2.10
2.16
2.71
.34
.26
.28
.35
.28
.35
.19
.32
2.89
2.58
2.31
2.88
2.52
2.83
1.73
2.76
2.84
2.42
2.40
2.77
2.51
2.80
1.63
2.70
.29
.17
.19
.21
.16
.17
.17
.24
.23
.20
.19
.20
.25
2.63
1.67
1.93
2.00
1.92
1.97
1.82
2.34
2.29
2.00
2.04
1.85
2.34
2.57
1.86
2.06
1.79
1.74
1.99
1.95
2.36
2.14
1.95
1.96
1.81
2.35
.29
.27
.24
.26
.27
.22
.23
.21
.30
.17
.25
2.47
2.39
2.43
2.41
2.30
2.24
2.46
2.33
2.96
1.68
2.35
2.48
2.56
2.47
2.35
2.33
2.15
2.28
2.07
2.83
1.69
2.30
.27
.24
.26
.20
.24
2.53
2.18
2.42
1.71
2.24
2.35
2.16
2.34
1.86
2.21
.33
.26
.18
2.40
1.78
1.68
2.75
1.99
1.69
Nashville_ ___ .24
New Orleans_ .16
Other cities__ .17
.20
Total
Chicago.33
Chicago
54
Detroit
Indianapolis__ .34
Milwaukee_ _ _ .31
Other cities.... .27
.36
Total
St. Louis"
.34
St. Louis
Evansville___ .21
Little Rock__ .20
Louisville__ .27
Memphis--- .26
30
Total
Minneapolis
Minneapolis__ .54
Duluth-Sup'r_ .28
39
St. Paul
.41
Total
Kansas CM;
Kansas City- .25
.20
Denver
.22
Lincoln
.22
Omaha
.19
Topeka
35
Tulsa
Other cities- .15
.23
Total
Dallas26
Dallas
Fort Worth,.,. 20
28
Houston
San Antonio__ .31
Other cities,.,... .23
.25
Total
Son Francisc oSan Francisco_ .23
Los Angeles-. .28
.24
Oakland
Salt Lake City .23
.29
Seattle
.19
Spokane
Other cities.- .16
.25
Total
.25
.18
.20
.22
2.15
1.51
1.67
1.79
2.36
1.68
1.94
2.00
.31
50
.31
.28
.23
.33
2.77
3.76
2.81
2.45
2.24
2.82
2.81
3.46
2.85
2.37
2.13
2.73
.28
.16
.19
.26
.24
.26
2.67
1.74
1.65
2.25
2.22
2.40
2.40
1.66
1.72
2.35
2.01
2.23
.49
.28
.32
.36
4.11
2.50
2.86
3.10
4.05
2.62
2.78
3.06
.23
.19
.21
.21
.18
.35
.13
.21
2.06
1.60
1.86
2.01
1.69
2.79
1.05
1.81
2.01
1.61
1.76
2.01
1.69
3.2()
1.06
1.80
.20
.20
.22
.23
.23
.21
2.01
1.79
2.19
2.43
1.95
2.05
1.86
1.73
2.15
2.07
1.94
1.93
.22
.29
.20
.17
.29
.18
.15
.25
2.04
2.34
2.05
1.94
2.39
1.50
1.43
2.13
1.93
2.48
1.84
1.58
2.35
1.42
1.33
2.09
United States_ .31 .28 2.48 2.42
during given period to average
Rate of stock turnover is the ratio of sales
stocks on hand.
Total.
Boston.
St.
New Cleve- Rich- CMYork. land. mond. cago. Louis
Dal- San
las. Fran.
Piece GoodsPer Cl. Per Ct Per CI. Per Ct. Per CI. Per Ct. Per Cl. Per Cl. Per Ct.
Silk and velvets... -7.3 -5.9 -12.0 -10.0 -14.9 -1.0 +2.8 +3.8 -9.0
Woolen dress goo -12.3-14.4 -11.6 -10.4 -12.7 -7.2 -7.4 -8.1-19.5
Cotton wash goods -3.1-11.2 +23.4 -3.9 +4.5 +4.4 -5.4 -7.5 -11.8
-3.4 -11.8 +0.4 -9.9 -13.0 +15.7 -5.1 +4.5 -2.9
Linens
+7.2 -1.4 +5.8 +14.9 +3.2 +14.5 -0.2 -3.1 -4.7
sheeting, &e,_
Domesties,muslins
Ready-to-Wear A cessori esNeckwear & scarfs +6.8 -4.7 +21.8 +15.1 -7.5 +21.2 -1.9 +23.7 -4.3
Millinery
-5.7 -0.7 +0.5 +13.7 +2.5 +12.9 -2.3 +2.7 -2.9
Gloves (women's &
children's)
+31.2 +19.3 +20.1 +56.6 +24.0 +55.8 +54.4 +72.2 -6.8
Corsets& brassieres -2.6 -6.0-11.1 -0.1-14.1 +8.7 +1.1 +1.2 +1.0
Hosiery (women's
& children's).- +8.2 -0.3 +0.6 +13.1 -3.1 +18.0 +6.5 +6.1 +11.5
Knit underwear_ +3.7 -3.0 +13.2 +3.0 +11.1 +12.2 +3.6 +1.5 -7.7
Silk&muslinunderwr.(inci. nettle.) -0.2-11.5 +4.3 -3.3 -2.7 +17.2 -6.6 -15.1 +7.9
+15.3 +10.0 +13.1 +19.9 +17.0 +28.5 +22.1 -3.9 --4A
Infants' wear
Smallleather goods +0.7 -7.2 -9.3 +7.7 -8.0 +10.9 +13.7 +17.3 -1.6
+12.9 +3.6 +17.1 +16.2 +18.3 +26.7 +25.9 -2.6 -8.6
Women's shoes
Children's shoes- +13.1 ____ +9.4 +17.1 +11.6 +17.6 +41.8 +12.2 -10.5
Women's & Miss es Rea dy-to- WearWomen's coats_ +20.0 -14.0 +13.1 +30.2 +1.8 +49.4 +41.1 +2.8 +10.4
+16.7 ____ -1-88.2 +22.9 ____ +31.3 ____ +8.8 +3.7
Women's suits
Tot.(2 above lines) +25.2 ____ +14.8 +30.0 +8.2 +46.3 +29.0 +12.4 +9.1
-2.4 -9.7 -3.9 -4.4 -24.4 +15.0 +2.7 -1.0 +0.8
Women's dresses
Misses' coats and
+25.9 +7.0 +16.7 +38.6 +45.7 +55.8 +28.2 +1.8 +15.7
suits
Misses' dresses_ _ _ +9.3 +1.0 +14.6 +6.3 +17.9 +5.2 -_- -9.6 +43.4
Juniors' and girls'
+25.7 +21.9 +27.2 +32.3 +13.1 +45.0 +15.5 +13.0 +8.5
wear
Men's & Boys' W ear+1.8
Men's clothing_ _ _ +9.7 +4.0 --- +10.0 +34.9 +12.6 +19.7 +11.7
Men's furnishings,
(incl.men'shos'y,
glom & ood•w'r +2.8 ____ +1.6 +3.2 -3.6 +13.4 -6.3 -6.3 +1.2
+3.7 +2.4
Men's hats & caps_ +9.6 _ __ -9.5 +8.4 ____ +24.3 +8.4
+0.7 +4.1 -3.4 +15.5 -3.9 -3.5 +1.3
Tot.(2 above lines) +3.3
-6.2
+13.5
+9.8
+13.7
+20.1
+14.4
+16.1
+2.8
+10.1
Boys' wear
-1.4
Men's& boys'shoes +6.1 +0.4 +6.1 +2.2 -1.6 +20.0 +0.3 +2.0
House Furrash'gsFur'ture(inel.beds,
-0.3
mattresses&sp'gs +2.3 -0.7 -0.6 -0.4 ____ +16.5 +10.5 -13.4 -24.3
_-_
-8.0 -8.8 -22.7 -17.9 +27.6 +23.0 +35.5
Oriental rugs
+13.3-10.5
-1.1
+8.4
-1.1
+1.5
+4.5
Domes.floor cover. +1.7 ____
Draperies, curtains
+5.6 ____ +15.7 +0.5 -3.6 +13.7 -4.3 +7.9 -1.9
&upholstery
--- - +31.7
Lamps & shades_ +6.6 -- -- +5.8 +7.7 -3.5 +8.8 -19.4
-6.2 +13.4 +1.9 -2.2 +12.7 -6.8 +6.6 +1.8
+3.9
above)
lines
Tot.(2
-8.3
-5.2
+16.2
+11.9
-0.1
+5.4
-2.8
China & glassware_ +0.3 -9.9
-1.1
TS.
CHANGES IN STOCKS OF DEPARTMENT STORES, BY DEPARTMEN
with Sept. 1927.
(Increase (+) or decrease (-) in stocks in Sept. 1928 compared
SALES OF MAIL ORDER HOUSES AND CHAIN STORES.
(Index numbers. 1923-25 average equals 100.)
Sales Without Seasonal
Adjustment.
Federal Reserve District.
Department.
Federal Reserve District.
Department.
Total.
BosIon.
Dal- San
St.
New Cleve- Rich- ChiYork. land. mond. cago. Louis. las. Fran.
Per Cl.Per CI. Per CI Per Ct. Per Cl. Per Cl,Per Cl. Per Ct. Per Cl.
Piece GoodsSilk and velvets_ _ _ -3.5 -3.9 +1.4 -7.8 +0.6 +5.9 -13.1 +10.2 -8.3
Woolen dressgoods -18.5-25.0 -13.4-25.8 -20.4 -5.8 -25.0 -12.5-14.5
Cotton wash goods -12.3-21.4 -19.5 -5.4 -12.3 -2.9 -11.4 -19.0-14.2
-4.5 -14.5 +1.1 -9.8 +1.1 +10.5 -4.2-22.3 -0.8
Linens
Domesties,muslins,
-9.6 -12.4 -0.1 -11.3-10.5 +3.8 -1.5 -27.6 -16.2
sheeting, &c
Ready-to-Wear A ccessor iesNeckwear & scarfs -11.5 -14.1 -3.8 -16.8 +2.1 -1.9 -34.9 -23.3 -0.5
-16.2 -14.1 +0.5 -4.6 -4.5 -25.9 -45.0-31.3 -25.2
Millinery
Gloves(women's &
-9.2 -7.5 -0.8 -11.4 -14.3-10.8 -18.4 -17.7 -6.0
children's)
-1.7
Corsets&brassieres -3.2 -3.7 -6.3 -2.6 +2.5 +5.7 -9.3-21.3
Hosiery (women's
& children's).- -2.0 -10.1 +10.3 -2.8 +4.7 +12.1 -21.5 -9.8 -2.2
Knit underwear_ -10.9 -13.4 -0.5 -12.1 -13.3 -4.5 -16.4 -12.6 -15.3
Silk&muslinunder-18.1
wr.(Incl. nettle.) -8.5-17.7 -1.1 -5.0 -2.3 +1.0 -12.7 -14.5
-3.9 -8.2 -8.2 -3.3 +8.4 -0.3 -16.4 -14.4 +4.1
Infants' wear
-6.3
Small leather goods -11.6 -23.4 -17.0 -0.1-10.6 +7.0 -16.5-16.0
-4.6
Women's shoes_ _ _ +3.8 -11.7 +14.7 -0.5 +8.6 +1.8 +2.3 -6.3
___ +6.3
Children's shoes._ +6.8 ____ +8.4 +4.5 -4.0 +20.7 -1.5
Weary-toRea
es
Miss
&
1Vomen's
-15.7-21.3 -9.9
Women's coats_ _ _ -14.3-23.0-23.3-11.7-16.0 +8.6 ____ -12.9 -1.4
Women's suits_ _ _ _ +3.0 --------+8.8 +41.9 -23.4 -22.2-13.0 -8.3
-5.7
-14.3
-11.2
-14.7
____
-11.3
Tot.(2 lines above)
-7.3-17.9
Women's dresses -12.7 -17.1 -16.6 -8.2 -12.0 -16.7 -19.9
Wisses' coats and
+4.8
-12.6
-25.3-17.8
-6.4
-11.5
10.3 -10.3-10.0
suits
-11.6 -14.4 -6.3 -8.0 +11.4 -35.4 ____ -14.1 -9.5
s.iisses' dresses_
girls'
Funlors' and
-7.5 -11.3 -7.8 -10.0 +1.3 -7.6 -6.9 -34.1 +2.5
wear
Men's & ROW 1V ear-19.1
den's clothing__ _ -7.8 -10.1 -8.8 -12.9 -8.1 +15.0 -17.0 -18.8
den's furnishings
hos'y'
(I nel.men's
-9.3 -0.1
gloves & und'w'r. -.5.4 ____ -8.1 -7.9 -7.4 +3.3 -10.2 -5.7 -17.9
den's hats & caps_ -6.2 __ -0.5 -7.4 ___ +8.0 -14.5 -7.9 -1.6
-10.8
+4.1
-7.2
-7.9
-7.8
-8.1
rot.(21ines above) -5.6
-6.4 -3.9 +6.0 -11.6 -2.5 -6.5 -3.6 -5.5 -10.8
toys' wear
+8.5
den's & boys'wear +4.5 +3.1 +1.8 +1.5 -2.0 +14.3 -10.4 +8.2
House Furnish'gsr'ueture(incl.beds
-5.2 +5.0
mattresses, sp'gs -4.2 -3.2 -7.6 -8.2 -11.5 +13.3 -5.5
-1.8 +1.9 -7.6 -1.3 +14.6 +8.6 -- -- -- --->dental rugs
+22.5 -8.7
-14.6
-1.7
-4.4
-7.5
-0.4
____
-4.7
cover
floor
)omes.
)raperies, curtaine
-21.4 -0.4
& upholstery... +6.1 ._-_ +41.1 -5.0 +0.1 +7.6 -8.0
-3.6 -- - - +35.5
amps & shades.. +2.8 ____ +4.4 -8.6 -0.7 +20.4 -7.4
-23.1 +2.5
+5.8
'ot.(2 lines above) +3.3 -7.9 +33.9 -5.6 -0.1
-1.9 -12.6 -19.6
:htnadcalassware_ -0.3 -0.6 +2.2 -0.5 +2.1 +6.9
Cooler Weather Stimulated Department Store Trade
During September in New York Federal Reserve
District.
"Notwithstanding the fact that there was one less business
leading
ay in September this year than in 1927, sales of
which
increase
an
showed
epartment stores in this district
argely compensated for the August decline." We quote
rem the November 1 Monthly Review of the Federal nerve Bank of New York, which also has the following
o say:
merchandise, and
"The cooler weather stimulated sales of seasonable
showing increases
most of the apparel departments were among those
substantial increases.
over September 1927. Apparel stores also reported
increase.
Nearly all sections of the district participated in the
Nov. 3 1928.]
FINANCIAL CHRONICLE
"As the following table shows, stocks of merchandise were generally
smaller at the end of September than a year previous. With sales larger
than last year, the rate of stock turnover was considerably higher than in
September 1927. The percentage of outstanding charge accounts collected
during the month was about the same as last year.
Percentage
Change
September 1928
Compared With
September 1927
fatality.
Na
Sales.
Stock on
Hand
End of
Month.
Per Cent. of
Accounts
Outstanding
Aug. 31
Collected
in September.
1927.
1928.
New York
+4.5
-2.4
48.7
49.4
Buffalo
+5.6
-4.0
53.6
52.3
Rochester
+7.5 -3.1
35.1
37.5
Syracuse
-2.5 -2.4
32.2
43.8
Newark
+3.4
40.4
40.0
Bridgeport
+13.7 -5.5
Elsewhere
+2.9 -7.6
33.1
34.4
Northern New York State
+2.2
Central New York State
+0.4
Southern New York State
+9.2
Hudson River Valley District
+4.3
Capital District
-2.6
Westchester District
+3.0
All department stores
+4.3
44.5
44.9
Apparel stores
+8.7 -3.9
43.8
42.4
Mall order houses
+21.9
Sales and stocks in principal departments are shown in the following
table:.
Musical instruments and radio
Shoes
Cotton goods
Women's and Misses' ready-to-wear
Women's ready-to-wear accessories
Men's and Boys' wear
Home furnishings
Books and statinerY
Linens and handkerchiefs
Men's furnishings
Hosiery
Furniture
Toilet articles & drugs
Silverware and Jewelry
Luggage and other leather goods
Toys and sporting goods
Woolen goods
Silks and velvets.: _
Miscellaneous
Net Coto,
Stock on Hand
Percentage Change Percentage Change
September 1928
Sept. 30 1928
Compared WWI
Compared With
September 1927.
Sept. 30 1927.
+15.6
-19.3
+14.1
+11.0
+12.7
+11.9
-13.8
+7.9
-2.1
+6.5
-4.6
+3.4
+7.9
+3.4
+5.1
+0.8
-2.5
+0.7
+0.6
+10.3
-0.6
-7.6
-0.6
+5.7
-4.3
-5.1
-7.1
-13.0
-9.5
+11.8
-11.6
-13.4
-12.4
-0.4
-4.7
-3.9
2433
average rate of activity has been slightly less than the average of
the corresponding period of 1927.
Although the average daily
consumption of cotton by New England mills during September
was the smallest for this month during a ten-year period, nevertheless, there was an increase between August and September. Prices of
raw cotton and cotton goods have shown tendencies to increase during recent weeks. Wool consumption in this district during September increased from August by more than the usual amount. The
average daily production of boots and shoes in New England in
September increased from August, and also was larger than during
the corresponding month a year ago. Wholesale hide and leather
prices declined slightly between the middle of August and September
15. The value of new building contracts awarded in New England
in September was the largest on record. If, however, one single largesized project were excluded from the figures a lower value for September
would be shown than for August or September a year ago. Between
August 15 and September 15 there was an increase of 1.9% in the
total number of workers employed in identical manufacturing establishments in Massachusetts. Sales of New England department stores
in September were about 1% behind those of the corresponding
month a year ago, and preliminary reports indicate that October
trade will not exceed that of a year ago. The number of commercial
failures in New England in September increased 7'/% from September, 1927, while during the same period total liabilities increased
165%. Money rates have eased slightly during recent weeks, that
of time money secured by mixed collateral between the weeks ending October 6 and October 20 dropping from 7'/-754% to 7%.
Research Aids New England to Cut Manufacturing
Costs.
A brief history of the accomplishments of 28 New England
companies through methods of reserach is contained in a
booklet "The Use of Research in Standardization and
Simplification,' published by the Policyholder Service
Bureau of the Metropolitan Life Insurance Co., 1 Madison
Ave., New York City. The brochure contains a part of the
compiled data on research in industry gathered during a
comprehensive survey of New England industry. It is
arranged in four sections each representative of a particular
method of attacking the combined problem of simplifying
and standardizing manufacturing processes.
In a statement with regard to the results through research
methods it is said:
Compelled to meet strenuous competition in a prolonged buyer's market,
New England manufacturers, deprived of the advantage which they formerly enjoyed through plentiful water-power, are turning in increasing
numbers to research as a means of cutting their costs and improving their
products.
Machine tool companies, textile weaving organizations, shoe manufacturers, paper mills, small arms makers, paint manufacturers-in fact
almost every industry in New England is taking.advantage of applied
research to simplify and standardize both their products and their processes
of manufacture,frequently with amazing economies.
Marked Gain in Chain Store Sales in New York Federal
Reserve District.
"Total sales of reporting chain store systems in the New
York Federal Reserve District showed a larger increase
over a year ago in September than in either of the two
previous months, notwithstanding the fact that there was
Both this pamphlet just issued and the preceding booklet
one less selling day in September this year than in 1927," of the series, "The Use of Research in Developing Old
according to the Nov. 1 Monthly Review of the New York iProducts and Introducing New Ones" may be had free of
Federal Reserve Bank. Its advices add:
charge on application to the publishers.
The increases were particularly large in variety chains,
which deal
largely in apparel, and in shoe chains. The 10 cent store chains
also
reported substantial increases. Apparently due in part to the
shorter
month, sales of candy chains showed a fractional decline from a year
ago,
despite a considerable increase in the number of stores, sales of
tobacco
chains were slightly smaller, and sales of grocery chains
showed the
smallest increase so far this year.
Percentage Changes September 1928
Compared With September 1927.
Type of Store.
Number of
Stores.
Total
Sales.
Sales per
Store.
Grocery
Ten-01n1
Drug
Tobacco
Shoe
Variety
+1.1
+9.1
+5.3
+4.4
+9.9
+18.1
+16.8
+5.6
+10.9
+1.8
-0.6
+22.3
+24.6
-0.3
+4.4
+1.6
-3.3
-4.8
+11.3
+5.5
-14.6
Total
+5.4
+10.8
+5.2
Candy
Business Activity in New England Federal Reserve
District
in September Practically Same as in August
-Gain
in Employment.
The monthly review of the Federal Reserve Bank of
Boston, dated November 1, states that "New England
business
activity in September was practically the same as in August,
and although the level was more than 2% above that which
prevailed during the period April to July, inclusive, nevertheless it was less than the rate during February or March."
The review also has the following to say in summarizing conditions in the District:
Business conditions, as measured by the Index of New England
Business Activity, have been unusually stable during the first nine
months of this year, as compared with previous years, and there has
been only about 5% variation between the index for March,
the
highest monthly index this year, and that for April, the lowest point
during the period January-September, inclusive. The index for September was about 8% lower than for the corresponding month
a
year ago, but in 1927 the September index was nearly 3%
higher than
that of any other month. During the first nine months of 1928
the
Material Gains in Production and Distribution of
Goods in Philadelphia Federal Reserve District.
It is stated in the Business Review of the Philadelphia
Federal Reserve Bank (issued Nov. 1) that "business and
industrial activity in the Philadelphia Federal Reserve
District has continued to advance toward somewhat higher
levels than those usually prevailing at this season." Tile
account of business conditions in the District comments
further as follows:
The production and distribution of goods have increased materially
in recent weeks, and in many instances have reached the peak for this
year or for some years past. The business situation this fall in fact has
been in sharp contrast with that existing at the same time last year when
trade and industry were less active than is usual at this season.
Retail trade continues to show seasonal gains. Sales of reporting stores
increased considerably during September and were almost 6% larger than
in the same month last year. The wholesale and jobbing trade also is
active, must of the reporting lines indicating a larger volume of business.
Sales in September were larger than in August but smaller than in
September, 1927.
Railroad shipments of commodities in the Allegheny district are more
than seasonally active, and in September reached the largest volume since
the fall of 1926. The movement of merchandise and miscellaneous commodities in the four weeks ending about the middle of October was at the
highest point for this year and was ahead of the amount in the same period
last year or two years ago.
Check payments in this district during September established a record
volume for that month. In the four weeks ended October 17, they were
17.4% greater than four weeks before and exceeded those for the same
period last year by 14.5%.
Stimulated by a larger demand for manufactured goods, industrial
operations have expanded further during the month. Factory employment
increased in September and the volume of payrolls for the first time
exceeded that in the same month last year. The demand for industrial
workers continued to increase indicating a steady improvement in
productive operations. On the basis of actual working days,
consumption of
electric power by industries in this district increased
substantially In
the month and was considerably ahead of the quantity used in
September,
1927.
Significant is the fact that inventories carried by reporting
manufacturers generally speaking are moderate, and show'a
considerable decline
as compared with the volume of a month and a year ago.
This decrease
[VOL. 127.
FINANCIAL CHRONICLE
2434
shoes and building
has been especially marked in metals, textile products,
materials.
recovery from
Building operations in September experienced a sharp
increase in the value of
the decline in August, as evidenced by a large
however, continued
contracts awarded. The value of building permits,
also showed marked
to decline. Real estate transactions in Philadelphia
decrease in the month and in the year.
by householders
Favored by colder weather, the demand for anthracite
also true of the
has improved appreciably in recent weeks. This is
month ago in
bituminous market which has become more active than a
sympathy with the general betterment of manufacturing industries.
not changed
Rates for commercial paper and bankers' acceptances have
averaged
recently, but call loans secured by stock exchange collateral
Member
September.
lower in the first three weeks of October than in
and in other
banks in this district report declines in loans on securities
character. Member
loans and discounts which are largely commercial in
to 80
banks reduced their borrowings from the Federal Reserve Bank
millions on October 17, the lowest point since the middle of June.
Industrial conditions are thus summarized by the bank:
continued the
Industrial activity in this district, as in the country, has
manufacturing plants
expansion begun early in the fall. Operations of
with the
have reached the highest rate this year and compare favorably
high levels customary at this season.
volume of
Reports are replete with evidence of this broadening. The
demand
manufactures in many lines is approaching the record mark; the
and payfor labor continues strong, employment remains well sustained,
agricultural
rolls are growing larger; corporate earnings are better; the
finished
situation seems to be fairly satisfactory; and the demand for
goods is increasingly active.
employment
In striking contrast is the fact that in the fall of 1937
production
declined almost steadily, and general business and industrial
too,
showed a smaller rise than is usual at this season. This movement,
the
occurred at a time when money rates were low, while the reversal of
which
rates,
money
higher
situation this year has been in the face of
the
apparently have exerted virtually no adverse influence either on
marketing or the production of commodities.
Industrial Activity in Cleveland Federal Reserve District at
Highest Point for Year in October-Outlook in Rubber and Tire Industry.
After a prosperous and increasingly active third quarter,
industrial activity in the Cleveland Federal District was at
the highest point for the year in October after allowing for
seasonal factors. According to the November 1 Monthly Business Review of the Cleveland Federal Reserve Bank.
Further surveying conditions the Bank says:
operating at close
The District's basic industry-iron and steel-was
of rail
to 90% of capacity near the end of October, with a revival
inquiries making its appearance and with demand from other sources
some
holding up well. Conditions in the tire industry were the best in
to
time, improvement was noted in the coal industry, and a change
retail
belated
colder weather in the last week of the month brought in
cities has
buying for the Fall and Winter. Employment in the larger
increased noticeably in recent months. The value of building contracts
awarded staged a marked recovery in September after the August slump.
A slight increase in exports to Europe following currency stabilization
is reported by several large manufacturers. Practically all the more
important manufacturers in the District are paying higher interest rates
on bank borrowings than at the opening of the year, but the advance
has not been sufficient to hamper operations to any extent.
that of
Total crop production in the District is estimated to exceed
larger
last year. The harvests of corn, oats, and tobacco are materially
and,curing
than in 1927, and owing to unusually favorable harvesting
to be the
weather, the quality of much of the tobacco crop is stated
best in years.
that
stating
Fourth District manufacturers are still unanimous in
part of
there is no evidence of speculative buying of commodities on the
th basis
their customers. Purchasing continues on a strictly hand-to-mou
and for quick delivery.
Conditions in the rubber and tire industry are indicated
as follows:
The outlook for this District's tire industry is much more promising
In surveying wholesale and retail trade in its District
among
than earlier in the year. Several factors have entered into this,
in
the Bank says:
which may be mentioned: (1) the stability of crude rubber prices
Retail Trade.
active, the
Early reports indicate that retail trade continues seasonally
majority of
demand varying in most cases between good and fair. The
Retail
the returns show gains in sales since the middle of last month.
prices generally remain unchanged.
Sales during September increased sharply, reflecting the usual seasonal
year.
tendency, and were nearly 6% larger than in the same month last
3%
In the first nine months this year, however, sales were still about
in
gained
smaller than in the same period last year. All lines reported
and
Scranton
of
exception
the month over a year earlier. With the
Easton, all city areas experienced gains over September, 1927, the largest
Increases occurring in Altoona, Harrisburg, Williamsport, Lancaster,
Wilmington and Philadelphia.
Inventories held by retailers at the end of September increased seasonally,
but were about 8% smaller than a year before, this change being shown
by nearly all lines. The rate of turnover was higher in September than
In the like month last year.
Wholesale Trade.
Distribution of merchandise at wholesale continues seasonally active,
and prices remain steady, except for numerous advances on- groceries.
Since the middle of last month the demand for groceries, hardware, jewelry,
electrical supplies, and paper has increased, while the remaining three
lines show little change, according to preliminary reports.
September sales exceeded those of August by nearly 4% but were
almost 5% below the volume of a year earlier. All lines, but drugs and
paper, showed gains during the month; compared with a year before,
groceries and paper experienced a larger volume of business, while the
other six lines showed declines. Reports on stocks carried at the end of
the month were divided about evenly between those showing increases and
those registering decreases in contrast with a month and a year earlier.
Accounts outstanding generally showed gains during the month. Most
reports indicate a decline in collections as compared with the previous
month and a year before.
Further Increase in Industrial Consumption of Electric
Power in Philadelphia Federal Reserve District.
Consumption of electrical energy by industries in the
Philadelphia Federal Reserve District increased materially
between August and September and as compared with a
year earlier when the total is reduced to the basis of actual
working days, and in Philadelphia industrial power consumption in September was the largest on record. The Federal
Reserve Bank of Philadelphia, in its monthly survey, adds:
Total sales of electricity showed a gain of about 3% in the month and
less than 19% as contrasted with September 1927. The output of electric
in August but over
power by 11 central stations was about 2% less than
15% larger than in the same month last year.
l'EDERAL RESERVE DISTRICT
ELECTRIC POWER-PHILADELPHIA
ELEVEN SYSTEMS.
Rated generator capacity
Generated output
Hydro-electric
Steam
Purchased
Sales of electricity
Lighting
Municipal
Residential and commercial__ _
Power
Municipal
Street cars and railrobds
Industries
All other sales
September.
Change
from
August
1928.
Change
from
Sept.
1927.
1,771,000 k.w.
468,658,000 k.w.h.
66,574,000 k.w.h.
328,196,000 k.w.h.
73,888.000 k.w.h.
370,715,000 k.w.h.
69,933,000 k.w.h.
8.850,000 k.w.h.
61.083,000 k.w.h.
241,963,000 k.w.h.
5,399.000 k.w.h.
45,684,000 k.w.h.
190,880,000 k.w.h.
58,819,000 k.w.h.
-0.8
-2.1
-46.6
+17.3
-0.5
+2.6
+11.8
+8.6
+12.3
-1.3
-3.9
+3.7
-2.4
+9.8
+26.1
+15.3
+410.8
-0.9
+7.6
+18.8
+12.1
+6.7
+13.0
+11.6
+317.3
+8.6
+9.7
+62.1
of
recent months as compared with the rapid decline in the first part
1928; (2) the practical disappearance of large stocks of rubber purchased
into
worked
at considerably higher prices, these having been gradually
weaproduction by manufacturers; (3) the almost unprecedented warm
ther in October, which has brought greater need for tire replacement
than usual at this season because of heavier travel and a lengthening
reof the touring season; (4) continued heavy automobile production,
original
flected in a strong and well-sustained demand for tires as
exports.
tire
of
equipment; (5) an improvement in the volume
One evidence of improvement is found in tire production for August
of pneu(the latest available), which broke all records. The output
over July,
matic casings for that month was 5,601,856, a gain of 15% (March,
month
high
30% over August, 1927, and 10% over the previous
tires.
1928). Shipments also made a new high record of 6,302,258
Merchandising Conditions in Chicago Federal Reserve
District-Gains in Wholesale and Retail Trade.
A larger volume of sales in the wholesale trade, as well as
expension in department store trade is indicated in the
following covering merehanding conditions in the Chicago
Federal Reserve District, which we quote from the Nov. 1
"Monthly Business Conditions Report" of the Federal
Reserve Bank of Chicago:
Wholesale Trade.
reported as
September sales by wholesale firms in the district were
and as smaller
heavier than a month previous or a year ago by half the lines
three quarters of
In both these comparisons by the others. For the first
have totaled less and
this year, grocery, hardware and dry goods sales
the
same period of
for
drug, shoe and electrical supply trade larger than
29 that at the end of
1927. Stocks in most lines were lower on Sept.
year
August. Collections increased over August and over September last
that they are fair or
In the majority of groups; comments thereon indicate
in
certain grocery
good. Prices continue firm, with an upward tendency
lines. Conditions show steady improvement in the agricultural sections
of Iowa.
•
WHOLESALE TRADE DURING THE MONTH OF SEPTEMBER 1028.
Net Sales During Month
Per Cent Changefrom
Groceries
Hardware
Dry Goods
Drugs
Shoes
Electrical Supplies
Stocks at End of Month
Per Cent Changefrom
Preceding
Month.
Same Month
Last Year.
Preceding
Month.
Same Month
Last Year,
(34)- 2.1
(15)+ 5.2
(13)+13.8
(13)- 2.3
( 8)- 5.4
(42)+ 4.1
(34)- 3.8
(15)+ 2.0
(13)+ 3.3
(13)- 4.7
( 8)- 7.8
(42)-17.5
(21)+ 2.7
(10)- 3.5
(10)-10.5
(11)- 1.1
( 6)- 4.9
(35)+ 9.6
(21)+ 1.9
(10)- 8.1
(10)- 4.8
(11)- 3,6
( 6)-f- 6.9
(35)+ 3.3
Accounts Outstanding End of Month.
Ratio to
Per Cent Changefrom
Net Sales
During
Same Month
Preceding
Month.
Last Year.
Month.
Collections during Month.
Per Cent Changefrom
Preceding
Month.
Same Month
Last Year.
(27)- 3.4
Groceries__ (32)+ 1.6 (32)- 8.7 (32) 101.6 (27)- 4.2
2.9 (13)- 3.6
Hardware... (151+ 3.7 (151+ 2.9 (15) 197.9 (131+ 7.6
( 91+ 2.2
Dry Goods (13)+13.2 (111+ 0.6 (13) 264.5 (111+
0.8 ( 614. 6.6
Drugs
(121+ 1.3 (12)- 0.3 (12) 137.6 ( 81+
1 5)+ 9.1
( 7)- 1.2 ( 7) 264.7 ( 61+ 8.2
,
Shoes
Elec. supp- (41)+ 9.0 (41)+17.4 (41) 139.8 ( 2)- 2.8 (311+ 6.8
Figures in parenthesis indicate number of firms included.
Department Store Trade.
Considerable expansion took place during September in department store
trade of the Seventh Federal Reserve District. Sales of 112 stores totaled
28.3% more than a month previous and gained 14.9% over September
1927. In the first nine months of 1928. sales showed an aggregate increase
of 5.4% over the same period of last year. The larger cities-Chicago,
Detroit, Milwaukee and Indianapolis-as well as the smaller centers,
Nov. 3 1928.1
FINANCIAL CHRONICLE
showed in the gains over August and a year ago. Stock averaged 8.4%
heavier for the district on Sept.29,than a month previous and were 1.8%
above the corresponding date of 1927. Stock turnover for the month
was 36.1% compared with 32.7% last September, and for the period
averaged 282.1% against 272.9% a year ago. Collections during September showed gains of 3.0 and 9.7% in the respective month-to-month and
yearly comparisons, while accounts receivable the end of the month increased 19.9 and 16.1%. September 1928 collections averaged 37.5%
of accounts receivable the end of August, which compares with 36.8% a
year ago.
Retail Shoe Trade.
Decided gains over the preceding month and a year ago were shown in
by
21 department stores and 25 retail dealers
shoes
of
September sales
of the Seventh District. The aggregate increased 54.1% in the monthly
and 22.2% in the yearly comparison, with only 8 reports indicating declines
in either. Sales for the year to date, which have been running behind last
year's, were brought to 2.0% above the corresponding period of 1927.
Stocks of 39 firms on Sept. 29 exceeded those on August 31 by 3.8% and
were 7% larger than a year ago. Seventeen dealers report that September
collections gained 2.3% in the aggregate over the preceding month and
16.1% over last September. At the end of the month accounts receivable
totaled 16.6% more than a month previous and 2.8% above a year ago
Their ratio to sales during the month averaged 56.8% this September,60.6%
for August, and 63.7% for September 1927.
Retail Furniture Trade.
The September total of furniture sales by 24 dealers and 24 department
stores reporting to this bank exceeded that for August by 45.1% and the
September 1927,figure by 17.9%. Installment sales of 18 dealers increased
45.6% as compared with the preceding month and 28.2% over last September. Stocks on Sept. 29, as reported by both department stores and
dealers, were larger by 0.4 and 1.7% respectively, than a month previous
or a year ago. Installment collections of 15 dealers decreased 8.1 and
8.3% in the month-to-month and yearly comparisons, while total collections
of 21 firms declined 10.6 and 9.3%. Accounts receivable on dealers' books
the end of September exceeded those on Aug. 31 by 5.8% and were 3.4%
heavier than a year ago.
Chain Shoe Trade.
The number of stores operated by 22 chains increased 0.9% in September
over the preceding month and was 21.4% above a year ago. Aggregate
sales by these stores gained 3.8 and 21.8% respectively, in the comparisons,
while average sales per store increased 2.8 and 0.3%. Grocery, 5-and-10cent, musical instrument, cigar, furniture, and women's clothing chains
showed gains in the month-to-month comparison, with the drug, shoe and
men's clothing groups recording declines. Cigar, musical instrument,
furniture, and men's clothing chains reported a recession in sales from
last September.
2435
alum the city and purchases by district tanners were smaller than in
August. Prices opened at firm levels and then trended downward toward
the close of the month and during the first half of October.
Furniture.
For the first time this year, data on orders booked and shipments by
furniture manufacturers in the district reflected gains over the corresponding
month of 1927. September orders of 23 firms totaled 11.6% more than a
year ago, while shipments gained 13.2%; slightly less than half the firms
reported increased orders, but the majority had larger shipments. In
the comparison with August, orders booked showed an expansion of 30.3%
and shipments of 20.7%. The volume of shipments was smaller than
new orders, but cancellations brought unfilled orders at the end of the
month to 0.7% below the amount held on Aug. 31, and the aggregate fell
5.2% below a year ago. Production averaged about the same in September
as a month previous and as last September.
Automobile Production and Distribution.
A gain of 58.5% over the corresponding month a year ago was recorded
in September output of passenger automobiles by manufacturers in the
United States, bringing production for the first nine months of this year
to 20.6% above the same period of 1927 and to within 2.8% of the 1926
record for the nine months. The total of 358,872 represents a decline
of 10.4% from the August level. Truck production of 54,850 declined
9.7% from August, but exceeded the volume of last September by 61.6%.
Distribution of cars in the Middle West, though falling below the level
of the preceding month, continued to show substantial gains over the
corresponding month of 1927. Stocks of new cars on hand increased
considerably over Aug. 31 and averaged higher than a year ago, and used
car stocks also increased in both comparisons. Sales made on the deferred
payment plan by 25 dealers averaged 44% of their total retail sales in
September, compared with 43.4% a month previous and 43.9% a year ago.
MIDWEST DISTRIBUTION OF AUTOMOBILES.
Changes in September 1928 from previous months.
Per Cent Change from
Aug. 1928. Sept. 1927
New carsWholesaleNumber sold
Value
RetailNumber sold
Value
On hand Sept. 29Number
Value
Used carsNumber sold
Salable on handNumber
Value
Companies
Included.
,
32.0
-34.3
+26.9
+12.5
25
25
-15.5
-3.5
+78.5
+42.2
78
78
+28.6
+27.8
+5.6
+4.4
48
48
-13.1
+24.5
77
44
+8.4
+9.9
Change in Industrial Employment Conditions
+14.5
+7.7
44
in Illinois.
Industrial employment as a whole showed little change in
volume during the period Aug. 15 to Sept. 15, the losses Seasonal Advance in Business Activity in Kansas City
Federal Reserve District.
in a number of industries being offset by gains in others.
Industrial and trade activity in the Tenth (KanSas City)
In stating this, the Monthly Business Conditions Report
Federal Reserve District displayed the customary seasonal
of the Federal Reserve Bank of Chicago added:
Little
The outstanding increase was in the metals and metal products group,
where 1.9% more workers were engaged and their earnings increased
1.2%. Lumber and rubber products likewise registered considerable gains
in employment and payrolls. Food products showed a wide divergence
In trend, meat packing, bread products, and confectionery putting more
men to work, while flour and dairy products, beverages, and ice manufacturing reported losses. Definite recessions were recorded for leather
products, for stone, clay, and glass products, in the manufacture of
clothing, and to some extent also in the vehicles group. At Detroit,
according to the reports of the Employers' Association of that city, employment continued to expand until the week ending Sept. 18, when the
volume was 4.6% higher than on Aug. 21, and 52.8% above the corresponding date a year ago. Since then a slight decline has been in evidence,
employment on Oct. 9, or three weeks later, registering 2.6% less. The
free employment offices reported a reduction in the ratio of applicants
to available positions during the month of September, Illinois showing a
decline from 138% to 130, Indiana from 113 to 108, while in Iowa there
was practically no change, the ratio dropping from 215% to 214.
EMPLOYMENT AND EARNIDNGISTRICT.S--SEVENTH FEDERAL RESERVE
advance in September, and October opened with the volume
at the peak of the year and above that of a year ago, says
the Federal Reserve Bank of Kansas City in its Monthly
Review dated Nov. 1. The survey of conditions in the
District continues:
Bank credit in recent weeks was at a high record level, and deposits
of reporting member bar.ka were the largest recorded in eight years.
Business failures were fewer than in any month since September 1923,
and with the exception of July, liabilities were the smallest since November
1926. Bank debits, representing check payments by individuals, firms
and corporations in thirty cities during the four weeks ending October 3,
were 12.4% greater than in the preceding four weeks, 14.4% greater than
in the corresponding four weeks in 1927, and the highest of record.
Distributive trade by reporting wholesale firms during the 24 business
days of September was, in the dollar volume, slightly less than in the 27
business days of August, but was a little above the total for the 25 business
days in September of last year. Sales of department stores during the
opening month of the Fall season exhibited an increase over Atigust and
No. of Wage Earners.
Total Earnings
were larger than in the same month last year. And the September increase
Week Ended
Week Ended
carried the total for nine months of the current year 0.7% higher than
Industrial
Per
Per
for
the like period in 1927.
Sepi.15 Aug. 15 Cent
Sept. 15
Groups.
Aug. 15
Cent
Prospects for farm crops in this District declined 1.1% between September
1928. 1928. Change. 1928.
1928. Change.
1 and October 1. There was some reduction in estimated yields of corn,
160,876 358,154 +0.8 89,757,648 $9,782,115 -0.1
All groups (10)
cotton, potatoes and hay, although increases in estimated yields of spring
Metals and metal products
wheat and sugar beets were reported. Still, the October composite of
143,475 140,862 +1.9 3,890,690 3,843,716 +1.2
(other than vehicies)37,684 37,839 -0.4 1,166,499 1,206,516 -3.3
107.7% for all crops in the District was 4.2% above the composite of
Vehicles
831,042
Textiles and textile products 27,063 27,309 -0.9
642,643 -1.8
October
1 of last year and 7.7% above the ten-year average.
Food and related products_ 47,942 48,088 -0.3 1,222,145 1,197,119 +2.1
An outstanding feature of the September reports was the movement of
422,710
Stone. clay & glass products 14,684 14,979 -2.0
452.860 -6.7
livestock to the markets, which was the heaviest- of the year for all classes
Lumber and its products- 30,750 30,023 +2.4
772,436
755,139 +2.3
10,009 9,946 +0.6
Chemical products
259,495
260,359 -0.3
except hogs, and heavier than in September a year ago for all classes
14,846 14,958 -0.7
Leather products
323,147
336,386 -3.9
except horses and mules. Marketings of farm products also exceeded those
3,987 3,890 +2.5
Rubber products
101.094
97,993 +3.2
30,436 30,262 +0.6
for the same month last year. Livestock values, although breaking somePaper and printing
968,390
969,384 -0.1
what under the heavy receipts in the latter part of September, were higher
than at this season last year, and with prices of grain exhibiting a firmer
Manufacturing Conditions in Chicago Federal Reserve tendency, the position of agriculture and livestock was further improved.
Productive activity in leading industries was
rate of the
District-Shoe Production and Tanning Opera- current year. This was particularly noticeableatinthethehighest
output of foods.
Decline-Midwest
The
slaughter of meat animals at packing 'plants showed increases over
Distribution of Autotions
August for all classes and over September a year ago for all classes except
mobiles.
cattle. The output of flour showed a small seasonal decline, but was
In its Nov. 1 Monthly Business Conditions Report the larger than a year ago. Vegetable canning factories and those producing
Federal Reserve Bank of Chicago thus surveys manufacturing other foods, as well as sugar beet refineries, were at the height of the
season's operations.
activities and output:
Some improvement in the position of the petroleum industry was reported.
Shoe Manufacturing, Tanning, and Hides.
Daily average production of crude oil increased slightly, but was below
Preliminary estimates of the United States Department of Commerce that of last year, while refinery operations were above a year ago, and
show that shoe production in the Seventh Federal Reserve District de- there was a reduction in the accumulated stocks of crude oil. The output
dined 12.1% in September from the preceding month. Tanning opera- of soft coal increased but was a little below the record of last year. There
tions and sales of leather decreased from August a year ago, according to was less activity in the movement of zinc ores, although shipments of lead
reports sent direct to this bank by representative companies in this diatrict. ore were larger than in August of this year or September a year ago.
Heavy construction work under way was reflected in the larger output
Prices of leather declined.
The Chicago market for packer green hides and calf skins was a little and distribution of cement and brick, and also larger sales of lumber and
more active during September than in the preceding period. Shipments materials, than in the preceding month or the corresponding month last year.
2436
[VOL. 127.
FINANCIAL CHRONICLE
Building was unusually active for so late a month in the year. The
value of permits in cities showed an increase over a year ago of 37.7%,
in
and the value of contracts awarded in the District was larger than
September of the preceding year by 1.6%.
Wholesale Trade.
of
September sales of reporting wholesale firms handling six lines
in
merchandise were smaller than in August by 6.8% and larger than
of
September of last year by 0.7%. It should be noted that September
this year contained only 24 business days as against 27 in August and 25
in September of last year. Computed on the daily rate, in dollars, the
returns indicate sales in September were at a higher average per day than
in either the preceding month or the corresponding month last year.
The reports show sales of dry goods and drugs were smaller in September
than in August of this year or September of last year. Sales of hardware
and furniture during September were larger than in either of the two
former months used for comparison. Sales of millinery showed a small
increase over the preceding month but were smaller than a year ago.
Wholesalers of groceries reported their September business fell below
that for August but was above that for September 1927.
Conditions throughout the District generally were regarded as favorable
for business during the final quarter of the year. Wholesalers of dry
goods reported a better feeling among retailers than had been observed
during the past four or five years. Although retail merchants continue
to pursue the "hand to mouth" policy of buying goods, which, though it
affects the volume of sales of wholesalers unfavorably, makes it easier for
merchants to pay their bills, resulting in a general improvement in credit
conditions in mercantile lines.
Retail.
Sales of reporting retail stores in Tenth District cities during the 24
trading days in September were larger in the dollar value than in the 27
trading days in August, and larger than in September 1927 in which there
were 25 trading days.
The increase in the volume of sales at department stores in September
over August was 18.2%. Last year the increase for September over August
was 23.1%. Department store sales for September, compared with those
for the same month last year, showed an increase of 6.4%. Twenty-seven
At
stores reported increases and seven stores reported decreases in sales.
the end of the first nine months of 1928 the volume of department store
sales stood 0.7% above that for the corresponding period in 1927.
Sales of men's and women's apparel at retail stores which report their
trade statistics were considerably larger than in September of last year,
while sales of shoes were smaller. Retail furniture stores reported an
increase of 0.4% in their sales as compared with the same month last year.
Chain grocery store sales, with the identical stores reporting for both
periods, were 7% larger than a year ago.
Stocks of department stores increased during the month and at the close
were 4.2% above those at the close of August, but 2.9% lower than on
September 30, 1927. Stocks at other reporting retail stores were a little
above those a year earlier.
tion of 150 reporting Southern Pine mills was 71,907,181
feet, which was 9,814,455 feet below their three-year average.
Unfilled Orders.
The unfilled orders of 341 Southern Pine and West Coast mills at the
end of last week amounted to 898.903,557 feet, as against 906.622,688
Pine
feet for 341 mills the previous week. The 150 identical Southern
week,
mills in the group showed unfilled orders of 261,623,378 feet last
Coast
as against 270,058.185 feet for the week before. For the 191 West
feet
mills the unfilled orders were 637,280.179 feet. as against 636,564,503
for 191 mills a week earlier.
and
97%,
shipments
had
Altogether the 548 reporting softwood mills
these perorders 94% of actual production. For the Southern Pine mills
centages were respectively 113 and 109; and for the West Coast mills
88 and 90.
production
Of the reporting mills, the 501 with an established normal
for the week of 388,436,000 feet, gave actual production 90%, shipments
87% and orders 84% thereof.
by
The following table compares the lumber movement, as reflected
the reporting mills of 8 softwood. and 2 hardwood, regional associations,
for the 2 weeks indicated:
Past Week.
Preceding Week 1928.
(Revived).
Softwood. Hardwood. Softwood. Hardwood.
403
554
403
548
Mills for units')
353,334,000 54,534,000 359,639,000 55,484,000
Production
62,712,000
347,775,000
342,056,000 62,276,000
Shipments
331,438.000 65.060.000 321,428,000 65.843.000
Orders (new business)
capacity.
production
daily
of
feet
35.000
18
unit
*A
West Coast Movement.
that new
The West Coast Lumbermen's Association wires from Seattle
business for the 191 mills reporting for the week ended Oct. 27 totaled 169,delivery,
cargo
115,022 feet, of which 45.115.958 feet was for domestic
and 52.407.593 feet export. New business by rail amounted to 60,522,904
moved
feet. Shipments totaled 165.455,813 feet. of which 52,765,772 feet
shipments
coastwise and intercoastal, and 32,678,972 feet export. Rail
Unshipped
feet.
totaled 68,942,502 feet and local deliveries 11,068,567
totaled
orders totaled 637.280,179 feet, of which domestic cargo orders
feet.
210,545,481 feet, foreign 275,791,538 feet and rail trade 150,943,160
Southern Pine Reports.
The Southern Pine Association reports from New Orleans that for 150
orders
mills reporting, shipments were 13.09% above production and
business
were 1.36% above production and 10.37% below shipments. New
week
(previous
feet.
to
72,881.682
taken during the week amounted
and pro75,830.771); shipments 81,316,489 (previous week 84.059,348);
producduction 71,907,181 feet. (previous week 73,335,596). The normal
tion (three-year average) of these mills is 82,696.137 feet.
reports
Ore.,
l'ortland,
of
rs
The Western Pine Manufacture Association
a normal
production from 33 mills as 26.382,000 feet. as compared with
production for the week of 31,065,000 and for the week before 30.187,000.
the same last week, with a fair gain in new business.
Well Sustained Industrial Activity Reported in San Shipments were about
White and Sugar l'ine Manufacturers Association of
California
The
of the
Francisco Federal Reserve District.
San Francisco, reports production from 22 mills as 31,093,000 (66%
figure
cut of the California pine region) as compared with a normal
A generally satisfactory agricultural outlook, a large total
reported
for the week of 29,300,000. Twenty-one mills the week earlier
volume of trade, well sustained industrial activity, and an production as 26,516,000. Shipments showed a substantial increase last
the
present
week, and orders a gain of more than 7,000,000 feet.
ample supply of credit are the chief features of
production
The California Redwood Association of San Francisco. reports
)
Federal
Francisco
(San
Twelfth
the
in
situation
business
from 16 mills as 6,301,000 feet,compared with a normal figure of 10,479,000.
feet.
5,061,000
as
of
conditions
production
summary
Reserve District, according to the
Fourteen mills the preceding week reported
a heavy decrease in shipments last week, and a slight decrease
made public Oct. 27 by Isaac B. Newton, Chairman of the There was
in new business.
production
Board and Federal Reserve Agent, of the Federal Reserve
The North Carolina Pine Association of Norfolk, Va., reports
for the week
from 80 mills as 11,786,000 feet, against a normal production
Bank of San Francisco. The summary goes on to say:
has of 14,850.000, and for the previous week 11,379,000. Shipments and new
Aggregate production of the District's farms and ranges during 1928
were somewhat less last week.
approximated that of a year ago, and, with the exception of a few special- business
, Minn.,
inThe Northern Pine Manufacturers Association of Minneapolis
ized crops, market conditions have been satisfactory. The livestock
from 9 mills as 13,019.000 feet, as compared with a
production
reports
position.
favorable
dustry has achieved a particularly
week earlier 12,562.000.
season- normal figure for the week of 11,154,000 and for the
The volume of trade transacted during September, 1928, was at
slightly less.
Shipments were slightly larger last week and new business
ally high levels and exceeded that of a year ago. Current trade conditions
rs Association of
The Northern Hemlock and Hardwood Manufacture
from 47
reflect a generally satisfactory employment situation and seasonal expansion
production
reports
production)
Oshkosh, Wis., (in its softwood
of
in buying power of agricultural communities.
as 5,090,000feet, as compared with a normal production for the week
mills
somewhat
been
have
activity,
building
and new busiInduetrial operations, excepting
20,484,000, and for the week before 5,341,000. Shipments
ago.
year
one
or
month
one
either
than
weeks
recent
during
more active
ness showed nominal decreases last week.
Improvement in those industries such as copper mining, lumbering, and
Hardwood Reports.
petroleum production and refining, which have co-operatively achieved a
partial regulation of output, has been noteworthy.
The Northern Hemlock and Hardwood Manufacturers Association of
comto
available
credit
of
supply
An increased demand for the ample
Oshkosh. Wis., reports production from 72 units as 3.778,000 feet as commerce and industry was evident during early October, although the total pared with a normal figure for the week of 15,079,000. Seventy-one units
was
and
volume of commercial loans extended by member banks of the District
the preceding week reported production as 5,160,000. Shipments
at these new business were about the same last week.
lower than during early September. Total loans on securities
reports
Tenn.,
October,
The Hardwood Manufacturers Institute of Memphis,
banks increased throughout September and the first half of
at production from 331 units as 50,756,000 feet. as against a normal producreflecting, in part, increased activity in security markets. Discounts
5.
September
high
point
on
a
reaching
since
tion for the week of 59,657,000. For the week before 332 units reported
the Reserve Bank have decreased
no
production as 50,324,000 feet. Shipments and new business showed
noteworthy change last week.
Lumber Sales Increase.
continues to increase, according to
lumber
for
Demand
reports received from leading softwood and hardwood
manufacturers to the National Lumber Manufacturers
Association. For the week ended Oct. 27, a total of 879
mills showed an increase in orders of- more than 9,000,000
feet, as compared with orders of 886 mills for the week before.
Both production and shipments, however, declined some,
what. Totals for the current week were production
orders,
and
feet,
00
404,332,0
,
shipments
407,868,000 feet;
by the
396,498,000 feet. The gain in orders was wholly
about
was
industry
hardwood
the
while
softwood mills,
n's
even in all three items. The West Coast Lumberme
n
productio
mills
233
for
n
productio
reported
n
Associatio
operating
weekly
average
an
against
208,408,966 feet, as
capacity for three years of 240,985,451 feet and an average
weekly production this year of 192,979,237 feet. Produc-
West Coast Lumbermen's Association Weekly Report.
n,
According to the West Coast Lumbermen's Associatio
Oct.
ended
week
the
for
that
show
mills
193
reports from
20 orders were 17.85% under production, while shipments
folwere 15.24% below output. The Association's statement
lows:
AND SHIPMENTS.
WEEKLY REPORT OF PRODUCTION, ORDERS
193 mills report for week ending Oct. 20 1928.
(All mills reporting production, orders and shipments.)
Shipments.
Orders.
Production.
160,977,659 feet
156,026.173 feet
189,935,752 feet
production
under
15.24%
17.85% under production
100%
WEEKLY OPERATING
AND
N
PRODUCTIO
ACTUAL
OF
N
COMPARISO
CAPACITY (233 IDENTICAL MILLS).
1928 to date.)
(All mills reporting production for 1927 and
a Weekly
Average Weekly
Average Weekly
Actual Production
Operating
Production
Production 42 Weeks
Week Ended.
Capacity
1927
During
Ended Oct. 20 1928.
Oct. 20 1928.
192,674,584 feet z240,985,451 feet
3, 192,611,861 feet
209,301.682feet
Nov. 3 1928.]
FINANCIAL CHRONICLE
WEEKLY COMPARISON FOR 191 IDENTICAL MILLS-1928.
(All mills whose reports of production, orders and shipments are complete for the
last four weeks.)
Oct. 13.
Oct. 6.
Sept. 29.
Oct. 20.
Week Ended186,785,381 181,335,469 182,171,887
188,788.666
Production (feet)
155,005,173 156,926,591 177,508,661 191,095,116
Orders (feet)
64,619,967 65,632,763 66,806,258 72,141,380
Rail (feet)
46,033,496 40,296,994 51,244,780 60,897,967
Domestic cargo (feet)
33,352,659 32,695,126 45,352,519 44,626,110
Export (feet)
10,999,051 18,301,708 14,105,104 13,429,659
Local (feet)
160,048,233 161,701,040 161,932,677 170,032,787
Shipments (feet)
69,366,331 71,014,172 69,120,198 77,724,950
Rail (feet)
47,769,715 49,473,566 52,325,984 55,048,863
Domestic cargo (feet)
31,913,136 22,911,594 26,381,391 23,829,315
Export (feet)
10,999,051 18,301,708 14,105,104 13,429,659
Local (feet)
636,564,503 646,711,921 636,914,543 627,790,319
Unfilled orders (feet)
160,474,484 172,072,144 175,757,542 183,722,084
Rail (feet)
219,519,309 229,662,922 233,253,160 233,992,534
Domestic cargo (feet)
256,570,710 244,976,855 227,903,841 210,075,701
Export(feet)
100 IDENTICAL MILLS.
(All mills whose reports of production, orders and shipments are complete for 1927
and 1928 to date.)
Average 42 Average 42
Week Ended Weeks Ended Weeks Ended
Oct. 20 26. Oct. 20 '28. Oa. 22 '27.
110,774,664 y102,351,858 98,458,746
Production (feet)
92,679,599 107,922,514 100,153,370
Orders (feet)
99,552,299 y108,049,214 98,687,176
Shipments (feet)
a Weekly operating capacity is based on average hourly production reporte, for
the years 1925, 1926, 1927 and 4 months of 1928 and the normal number of operating
hours per week. y Includes adjustments result mill audit to Sept. 30. z Reflects
capacity adjustments to 19 British Columbia operations.
TO
Reduction in Canadian Newsprint Prices-Statement by International Paper Co.
Regarding a out in Canadian newsprint prices, a Montreal
dispatch Oct. 30, to the New York "Times" said:
The Interrational Paper Co. announced to-day that it had contracted
to supply a large tonnage of newsprint to the Hearst papers for a term of
years below the contract price for 1929. It was reported here that the
price was $50 a ton, and it was also stated that the Abitibi Power & Paper
Co., in an understanding with International Paper, had obtained the
Chicago "News" contract at the same figure.
Nominally, the price of newsprint has been $65, but it has long been
known that contracts have been made far below that figure, with reports
of some export business being arranged below $50 from the mill.
While it is conceded that the price of these new contracts may be subject to certain arrangements which might make a difference of a dollar
or so, the $50 level is generally accepted as being the basis.
Believed the General Price.
The action of International and Abitibi is expected to establish the
general price of newsprint for next year,for it Is reasoned that manufacturers
with contracts calling for higher figures would only be losing their future
market, if they did not supply their customers at the price generally prevailing.
Price Bros. & Co. are reported to be offering alternative plars to pubfishers in the United States. One plan, or yearly contracts, embodies an
agreement to adjust prices at the end of six months to the prevailing price
of the three largest producers. The other plan, for five-year contracts,
offers a rebate o° 25% of any difference between the cost of paper and the
contract price, with the provision that when the contract price goes below
Price Bros.' costs, the seller will absorb 75% of the loss.
Price Bros. guarantee that their costs will not e.cceed $56 a ton, consisting
of $42.50 mill costs and $13.50 for overhead, while if costs are lower the
publishers are to receive the full benefit.
Newsprint stocVs were generally weak here to-day, with rather heavy
selling in several. Three issues dropped to new lows in breaks of as much as
six points.
From the same paper (Oct. 31) we take the following
announcement in New York by the International Paper
Co.:
We closed yesterday a contract for a substantial tonnage of newsprint
for the Hearst papers for several years at prices less than our present
contract prices for next year. This transaction irvolves no deviation from
our practice of announcing standard prices, and as soon as the necessary
details can be completed we will offer substantial price reductions to all of
our customers, including those who have already signed their contracts for
next year.
Commenting on the above the "Times" said:
2437
Removal of the Stevenson regulations to-morrow night brings to an end
rubber restrictions which have existed for exactly six years, having first
been put into effect Nov. 1 1922, and throws the rubber industry back
entirely upon the law of supply and demand. What the effect of this
change, which has, of course, long since been discounted by the trade,
will be upon the industry is purely speculative, but officials in Washington who are interested in the rubber situation to-day expressed the belief
that it will bring about the introduction of many new uses for rubber
which have been held in abeyance during the past few years because of
the uncertainty of supply and price which have prevailed.
September Sales of Automobiles in Philadelphia
Federal Reserve District-Falling Off in Wholesale
and Retail Trade in Case of New Cars.
In reviewing the automobile trade in its district during
September the Federal Reserve Bank of Philadelphia, says:
Sales of new passenger cars at retail and wholesale were smaller both in
number and value during September than in August but were appreciably
larger than those in the same month last year. This also was true of retail
deferred payment sales. Sales of used cars, on the other hand, showed
substantial gains in number and value as compared with the preceding month
and a year earlier.
Inventories of new and used cars carried by dealers at the end of the
month showed a marked increase from those of a month and a year before.
Automobile Trade.
September 1928 Change from
Philadelphia Federal Reserve District- -August 1928- -September 1927Number.
Value.
12 DistributorsNumber.
Value.
-11.1% -12.0%
Sales, new cars, wholesale
+16.0% +20.8%
-23.5% -16.0%
Sales, new cars, at retail
+9.7% +14.6%
+28.0% +25.8%
Stocks of new cars
+19.0% +24.3%
Sales of used cars
+315% +37.8%
+62.8% +70.8%
Stocks of used cars
+60.5% -144.9%
+3.5% +23.7%
-12.8% -10.2%
Retail sales, deferred payment
+18.6% +21.4%
Tire Prices Reduced-New Rates Retroactive to Sept.26
-Cuts Range from 234 to 7347o.
Automobile tire prices underwent their second downward
adjustment of the year on Oct. 30 when the leading manufacturers simultaneously announced reductions ranging from
23'2% to 734% on the popular sizes of first, second and
third grades, according to the "Journal of Commerce" of
Oct. 31. The first line tires *ere lowered 234% to 5%,
the Ford and Chevrolet sizes receiving the small reduction,
and the balloons for the medium sized rims the 5% cut.
or to a
The second line tires were lowered 5% to 7
price basis that is 1734 to 20% below the first line, as against
a differential of 15% formerly. Second and third line tires
lack the finished workmanship and crude rubber content of
the first grades, and are usually competitive with mail order
tires. The "Journal" continues:
Manufacturers who announcing the price reductions of Oct. 30 included
the Goodyear Tire & Rubber Co., United States Rubber Co., Firestone
Tire & Rubber Co., Miller Rubber Co., Kelly-Springfield Tire Co., Michelin Tire Co. and the Seiberling Rubber Co. Many other companies of
smaller production are expected to follow the larger comcerns and amnounces
corresponding reductions. [Other manufacturers reported to have made
reductions were the B. F. Goodrich and Dunlop Tire & Rubber companies.
-Editor.]
The price reduction order is retroactive, dating hack to Sept. 26 last,
and the manufacturers stated that their action had no connection whatsoever with the abandonment of the British restriction plan on crude
rubber, which officially went out of existence at midnight on Oct. 31. It
was pointed out that the spring period of forward booking opens Nov. I.
which enables tire dealers to order shipments for delivery during the first
quarter of the new year and pay for them on May 1. Price adjustments.
if necessary on next year's business, are naturally made prior to the spring
dating period, it was stated.
1he last previous price reductions were made early in June of this year.
At that time the Firestone company initiated the movement with price cuts
of 17% on the first line to 4% on the third,all other manufacturers following.
Mail order firms had reduced prices a month previous, the cuts ranging
from 5 to 15% in the summer catalogues. The mail order business in tires
has been growing by leaos and bounds in recent years. It is stated that
the Riverside line of Montgomery Ward & Co. is one of the largest selling
grades in the industry. The turnover in this line alone last year is understood to have exceeded 16,000,000 casings and tubes.
The trend of newsprint prices has been downward for several months,
although this is the first outright cut in the price per ton which has been
announced. Newsprint for the first half of the current year was $66 per
ton f. o. b. mills, plus $3 freight, making the aggregate price $69 per ton.
In the second half of the year the price was fixed at $66 per ton, plus $3
freight, but less a rebate of$3 per ton on the first half of next year's tonnage,
making the actual rate $66 per ton.
The "Wall Street News" of Oct. 31 said:
There was considerable discussion yesterday as to the actual price to
The leading rubber companies are making price adjustments on tires
be paid on the new contract announced by International Paper and the
average of about 5%.
amount of paper involved in the contract. Ore report was that the con- which reduce price schedules of first tires on an
on the so-called second
tract price was considerably below $60 per ton and one report had it as low according'to announcement on Oct. 30. Reductions
that second line prices
slightly
more
than
5%.
Published
reports
as $50 per ton. These reports were all unconfirmed. Officials of the Inter- lines are
average
are incorrect. The
on
an
been
reduced
from
20%
have
to
l7)%
national Paper Co. said that the new schedule would be ready within the
differential in the price between first and second line tires now ranges
next two or three days.
between 17%% and 20%, compared with a former differential of about
15%.
Termination of Stevenson Rubber Export Restrictions
by Great Britain.
Secretary Jardine Again Advises Farmers to Hold
Wheat-Increased Supply Offset by Increased
the
witnessed
removal
of
the
Stevenson
Nov. 1
rubber exDemand-Canada's Yield no Larger Than Last
port restrictions in Great Britain; the date for their terYear-Europe Obliged to Seek Greater Supply
mination was announced early this year, mention of the
Overseas.
same having been made in these columns April 7, page 2067.
Coupled with the statement that Canada's supply of bread
In stating that the rubber situation had been improved as
a result, the "Wall Street News" announced the following wheat may be no larger than last year, is the further statement by the Secretary of Agriculture that information from
Central News cablegram from London, Nov. 1:
The "Times," commenting on the end of the Stevenson rubber re- Europe makes it clear that the estimate of the crop of the
striction scheme to-day declares that the British industry has now been Danaubian region must be revised downward. Calling atrestored to a sound economic basis, having relieved itself of the burden
Department's statement of Aug. 23 that this
of carrying its competitors. The fall in the price, it asserts, has brought tention to the
year's increased supply of wheat would be offset by inabout great improvement in the British statistical situation.
We also quote in part a Washington dispatch Oct. 30 to creased demand and other factors, Secretary Jardine, unthe New York "Journal of Commerce":
der date of Oct. 26, likewise recalls his statement of Sept.
2438
FINANCIAL CHRONICLE
[VOL. 127.
days on which the net trading of the five leading speculators
12 in which he pointed out that the large amount of wheat individual
aggregated 2,000,000 bushels or more. There were in all, 94 days of a
depressing
unduly
was
farmers
by
markets
thrown on the
total of 176 on which this group traded to a net amount of 500,000
the price. Adding that he advised farmers to hold their bushels or more. On 64 of these 94 days, or 68%, the price moved in
same direction as the net trade of the group—i. e., if a purchase,
wheat, he says: "I see nothing in the situation now to the
upward; if a sale, downward. The net trading of the five amounted to
26
Oct.
change this advice." Mr. Jardine's statement of
1,000,000 bushels or more on 56 days; on 44 of these days, or 79%, the
price moved in the same direction as their net trades. There were 28
follows:
or over and
Inspections of Canadian wheat to date indicate that the effective supply days on which the net amount traded was 2,000,000 bushels
days, or 86%, the price moved in the same direction as
of Canadian bread wheat from this year's crop may be no larger than on 24 of these
the net trade. There were five trades which exceeded 5,000,000 bushels
from last year's crop. It is becoming more apparent that the frosts seriduring the day, and in each case the futures price moved in the same direcously damaged the Canadian crop, and dockage is reported to be unusu- tion as the net trade."
below
ally heavy. Consequently, a large proportion of this year's crop is
classed as
The bulletin also relates the market activities of 42 large
contract grade, and much more wheat than last year is being
speculators.
These traders, it is said, comprised all the
feed.
According to a report froth the Canadian Board of Grain Commissioners, speculators whose market position reached 500,000 bushels
of
weeks
three
first
the
durum
than
other
wheat
of
inspections
7% of the
October was classed as feed, and 36% graded Nos. 5 and 6. In the cor- or more in any one future at any dine during the period
responding period last season only four-tenths of one per cent, was classed under review. Five of the 42 traders each accumulated a
one-fourth of
as feed, and 4% graded Nos. 5 and 6._ A little more than
inspec- long or short position in the market of more than 2,000,000
the estimated total wheat crop has been inspected to Oct. 22, and
as bushels at some time from June 1 to Dec. 31 1926. One of
classed
been
had
4.6%
period
entire
the
for
tions other than durum
feed, and 27% in grades 5 and 6. Since a large percentage of the early the five reached a maximum position of more than 12,000,that
receipts was from areas not much damaged by frost, it is possible
000 bushels short. Another reached a maximum position of
6% of the inspections for the year will be classed as feed, 15% No. 6, and
15% No. 5, as compared with one per cent. feed, 3% No. 6, and 5% No. more than 10,000,000 bushels short. Still another group
5 last year. Assuming that between 450 and 480 millions bushels will be of traders whose operations are studied in the bulletin, conInspected, it will be observed that between 25 and 30 million bushels would sisted of the
customers of 15 clearing firms of the Chicago
be classed as feed, and between 130 and 140 millions would be graded
Board of Trade, whose clientele consisted of small or meNos. 5 and 6.
Wheat grades 5 and 6 are now priced at a heavy discount below the dium-sized traders. A third group including, so far as
grades that are deliverable on contract.' The Western Division average could be ascertained, all of the hedging accounts which
price of No. 6 wheat the week ending Oct. 13 was 80 cents, and No. 5,
92 cents, as compared with 103 for No. 4 and 125 for No. 1. The price reached a position of 500,000 bushels or more at any time
of No. 6 was only 6 cents above feed wheat.
during the period in question, is covered in the bulletin.
According to the Canadian Board of Grain Commissioners, the moisThis
group represented probably 50% of the total hedging
grading
is
wheat
little
ture content of all grains is low this season. Very
tough and damp. It is obvious that grades 5 and 6 are discounted on ac- position. The study, according to the bulletin, confirms and
count of frosted kernels, and are selling on a basis far below the higher strengthens conclusions previously reached as to the siggrades. It appears, therefore, that a considerable part of this low-grade
nificance of large-scale speculation in the grain futures
wheat will not enter the market for good milling wheats. A discount
of 10% for No. 5 and 20% for No. 6 from the average effectiveness of markets. It declares the outstanding fact is established that
the contract grades would appear moderate. It seems reasonable, there- the large-scale trading of leading speculators directly refore, to scale down the present estimate of the Canadian crop by about
lates to price to a marked degree. Without this heavy con50 million bushels to offset the effect of frosts upon the effectiveness of
centrated trading price changes would be more gradual and
the Canadian wheat crop in the bread grain market of the world.
Furthermore, Canadian inspections indicate a material increase in the would move,more nearly in line with fundamental market
crop of durum wheat. Inspections of durum to Oct. 22 amount to about
13,000,000 'bushels as compared with only 6,500,000 last year, which was Information, it is declared.
The bulletin is Technical Bulletin No. 79-T. Its authors
about 50% of the total for the year. Making some allowance for the
early harvest the durum inspections for the season may be estimated at are J. W. T. Duvel, Chief, and G. Wright Hoffman, conbushels
million
500
the
from
this
about 25 million bushels. Subtracting
leaves an available bread grain supply equivalent to about 475 million sulting grain economist, of the Grain Futures Administrabushels, which is but little larger than the crop other than durum of last tion. It contains charts showing price movements from
year.
day to day, together with the volume of trading on the open
It is apparent that last year's crop was underestimated. Receipts at
country elevators and platform loadings last year amounted to 410 million contracts in the futures market of the Chicago Board of
bushels. Making allowances for grain retained on farms for seed and Trade.
other purposes, it seems evident that Canada actually produced last year
between 465 and 485 million bushels. From this subtract 15,000,000
bushels inspected durum, about 5 millions classed as feed, and there re- Livestock Situation Sustains Farm Purchasing Power.
mains between 445 and 465 millions bushels of bread wheat available for
Despite production of all crops of approximately 5% more
all uses. It is true that last year a large proportion was classed "no
grade," but this was due to a large amount of moisture, and practically than last year's harvest, the purchasing power of farm proall of the wheat was reclaimed before the end of the year and actually ducts in terms of other commodities continues within 10%
used.
pre-war parity, according to the Bureau of
Also the latest information from Europe makes it clear that the crop of the 1909-14
of the Danubian region must be revised downward. This correction may Agricultural Economics, United States Department of
amount to some forty million bushels. This means that Europe must look Agriculture, in its November 1 report on the agricultural
more to overseas countries than was thought to be the case. This makes
situation. The chief sustaining influence is the favorable
the adjustment of supply and demand in Northern hemisiphere wheat
position of the livestock industries. A considerable revival
more close than had been expected.
The extensive use of the combine and favorable marketing weather of stock feeding in the central grain regions is reported by
during the early part of the 1928 season have had the effect of increasthe Bureau. It states that the early movement of feeder
ing the visible supply of wheat in this country.
On Aug. 23, in a special statement, the Department pointed out that cattle was very heavy, nearly 50% more cattle than last
this year's increased supply of wheat would be offset by increased de- year moving into the Corn Belt through public stockyards
mand and other factors. On Sept. 12 I pointed out that the large
in July, August and September. Shipments of feeder lambs
amount of wheat thrown on the markets by farmers was unduly depressing the price. I advised farmers to hold their wheat. I see nothing in into the Corn Belt during the same period, through public
the situation now to change this advice and the above facts, indeed, strength- markets, were 17% larger than last year's.
en my belief that farmers would benefit by doing so.
According to the Bureau the principal feed and food crops
are now practically all under cover, and the new crops have
begun a substantial market movement. In most cases
prices reflect the larger supply as compared with last year's
production. Hay of the alfalfa and clover mixture classes
has been selling rather better than during last season, whereas
the wheat and potato markets have been unsatisfactory to
growers. The leading corn and oats regions are finding some
consolation in the current prices of cattle and hogs. Students
of the corn situation, says the Bureau, see a rather striking
similarity this year with the season of 1925. The supply of
corn is like that year's supply and we are now in a similar
phase of the corn-bog cycle. Years of large corn crops are
not usually profitable years for the man who sells corn,
unless he sells early before cash prices drop, or very late
after they have risen.
Discussing the corn situation at length, however, the
report states:
Department of Agriculture Finds Speculation in Grain
Futures a Factor in Price Fluctuations.
That heavy trading In futures by a few leading grain
speculators is frequently an important factor in grain price
fluctuations, is indicated by the United States Department
of Agriculture, in a new bulletin entitled "Major Transactions In the 1926 December Wheat Future," which it is
stated reveals many hitherto undisclosed features of grain
speculation on the Chicago Board of Trade. Under the subtitle "Importance of Five Leading Speculators," the bulletin discusses the relation of prices in 1926 to the market
position of the speculators in question. The conclusion is
reached "that withont the accumulation of long or short
lines of millions of bushels by a very few leading speculators the major swings in price would not have been so
large." The bulletin, according to an announcement by the
Despite the likeness of the present corn price situation to that of three
Department, Oct. 26, says:
Years ago, there are some things which suggest that the level of prices will
"Particularly pronounced, is the relation of price to the market posi- be somewhat higher, and that the seasonal decline may be delayed. The
tion of the leading speculators on days on which net purchases or sales
In large proportions occurred. It is by no means a coincidence that the
price and net trade moved in the same direction on 24 out of 28 of these
European crop appears likely to be about 20% smalla than in 1925, and,
unless the Argentine crop turns out to be a large one, this should help the
export demand for American corn.
1
2439
FINANCIAL CHRONICLE
Nov. 3 1928.]
composed of hedges against the purchase or sale of spot or cash
Furthermore, cattle prices are now much better than in the fall of 1925.
cotton.
so that, if Corn Belt farmers can get feeder cattle, this may increase the
The proposed Control Committee is to be composed of three memit is
demand for feeding corn over what it was three years ago. In addition,
the Exchange, not members of the Board of Managers, to
well to note that prices are holding up better than they were in 1925. bers of
annually by the board, who will have broad inquisiappointed
December
be
and
higher.
cents
12
or
10
about
selling
Cash corn has been
tional powers in determining the interests in any designated Posifutures about four cents higher than at this season in 1925.
tion of any clearing member or his customer. The committee has
power to summon members of the Exchange together with their
books and records and -to order members to liquidate holdings of
Domestic Exports of Grain and Grain Products.
a client in excess of the permitted limit.
out
gave
The Department of Commerce at Washington
Members of the Committee of Fifteen which made the recommendaare based were: John
on Oct. 25 its monthly report on the exports of the principal tions upon which the proposed amendments
H. HcFadden, Jr., chairman William S. Dowdell, Frank M. Hartgrains and grain products for September and the nine corn, Elwood P. McEnany, J. Lawrence Watkins, Jr., T. Hunter Wood,
months ending with September, as compared with the cor- Thomas F. Cahill, Edward R. Cone, Richard T. Harriss, Perry E.
responding periods a year ago. Total values of these ex- Moore, Clayton E. Rich, Marshall Geer, Thomas J. Beauchamp,
smaller in September 1928 than In September Philip B. Weld and John C. Botts.
ports were
1927, $44,749,000 being the value in September 1928 against
$72,671,000 in September 1927. Exports of rye in September this year were only 2,450,000 bushels as against 7,734,000 bushels in September 1927, exports of wheat but 17,939,000 bushels against 33,748,000 bushels and exports of
wheat flour 1,020,000 bushels against 1,280,000 bushels.
Barley, corn, oats and rice, however, went out in larger
quantities in September this year. The details are as
follows:
DOMESTIC EXPORTS OF PRINCIPAL GRAINS AND GRAIN PRODUCTS.
Month
1927.
or September.
1928.
9 Mos. End. September.
1927.
6,637,000 14,363.000 21,131,000
Barley, bushels
$6,030,000 $11,601,000 $19,582,000
Value
1,982,000
219.000
214,000
Malt, bushels
611,000 11.108,000
507,000
Corn. bushels
$645,000
$9,419,000
$530,000
Value
14,000
320,000
16,000
Cornmeal, barrels
697,000 20,760,000
954,000
Hominy and Grits, pounds..8,848,000
632,000 2,291,000
Oats. bushels
$327,000 $1,049,000 $4,619,000
Value
7.805,000 8,859,000 45,762,000
Oatmeal. Pounds
$504,000 s $2,842,000
8462,000
Value
7,551,000 9.056,000 191,707,000
Rim. pounds
1367,000 $7,915,000
$281.000
Value
5,853,000 6,235.000 55,241,000
Rice, broken. Pounds
$167,000 $1,678,000
8180,000
Value
7.734,000 2,450.000 25,446,000
Rye, bushels
$8,021,000 $2,577,000 $28,698,000
Value
17,939,000 111,422.000
33,748,000
bushels
Wheat,
$47,620,000 821,116,000 $162,704,000
Value
8,853,000
1,280,000 1,020,000
Wheat flour, barrels
88,552,000 $6,061,000 $59,406,000
Value
5.271,000
342.000
367,000
Biscuits, unsweetened, lbs....
208,000
374,000
3.727,000
Biscuits, sweetened, pounds_
714,000
6,090,000
609,000
Macaroni, pounds
1928.
31,620,000
$28,377,000
2,147,000
16,868,000
$17,793,000
188,000
7,496.000
7,076,000
$3,555,000
42,016,000
$2.726,000
192.702,000
$7,357,000
68.972,000
$1,796,000
9,547,000
$12,176,000
55,990,000
$73,076,000
8,330,000
$53,013,000
5,225,000
2,877,000
7,005,000
of Cotton, Cotton Cloths, Yarns,
Threads and Hosiery.
The Department of Commerce at Washington on Oct 26
Issued its monthly report on the domestic exports of cotton, cotton cloths, yarns, thread and hosiery for the month
of September and the nine months ending with September,
with comparisons for the corresponding periods a year
ago. The exports of raw cotton were larger in quantity
and value in September of this year than in September last
year, 814,569 bales having been shipped out in September
1928 against 631,041 bales in September 1927, and the
'value of these exports having been $85,253,080 in September this year as compared with $69,670,915 in September
last year. For the nine months period, however, ending
with September 1928, the exports of raw cotton were only
4,942,673 bales as against 6,582,070 bales in the nine months
period ending with September 1927. But the value of these
shipments was $522,504,492 against $509,831,035. The exports of cotton manufactures were somewhat smaller in
September and the nine months period ending with September than in the corresponding periods a year ago. Below is the report in full:
Domestic
Exports
DOMESTIC
EXPORTS OF COTTON, COTTON
THREADS AND HOSIERY.
Month of September.
Total value
CLOTHS, YARNS,
9 Mos. End. September.
$72,671,000 $44,749,000 $304,890,000 $207,332,000
1927.
1928 Estimate of Crops in Russian Soviet Union.
The first detailed estimates of the crops of 1928 in the
Soviet Union have been received by cable by the Soviet
Union Information Bureau, which under date of Oct. 24
said:
The total grain crop is 75,764.000 metric tons, an increase of 636,000
metric tons over 1927. Included in the total, the figures for wheat are
22,399.000 metric tons, an increase of 2,010.000 metric tons (about 73,000,000 bushels) over 1927. The estimates are for Oct. 1, and are not final
figures.
Further figures indicate a cotton crop of 860,000 metric tons (unginned),
the best since the war and an increase of 36% over 1927. The sugar beet
crop is estimated at 10,641,000 metric tons, a bumper yield 'well above the
pre-war average and 9% over 1927.
The crop of sunflower seed shows a falling off of 16% from 1927, while
both flax and hemp register small gains. The figures, in metric tons, are as
follows:
2,080.000
Sunflower seed
578.000
Flax seed
346,000
Flax fibre
568,000
Hemp seed
496,000
Hemp fibre
1928.
1927.
1928.
631,041
814,569
6.582,070
4,942,673
Raw cotton,incl.linters. bales_
$69,670,915 $85.253,080 $509,831,035 $522,504,492
Value
Cotton manufactures, total._ _ $11,055,885 $9,189,914 $98,415,076 $97,261,903
Cotton cloths, total, sq. yds_ 51,766,860 35,762.821 429.419,329 380,595.284
86.681,416 15.225,765 156.795.388 856,331,688
Value
249,856
4,996,116
3,400.277
223,004
Tire fabrics. ag• yds
1132,714 $1.157,194 12,054.538
$77,167
Value
818,832 12,097,408 10,089.689
1,166,160
Cotton druck, so. yds
$279,346 83,706,332 83,441,736
$357,418
Value
Other Cotton Cloths13,203,760 7,336.774 101,604,099 82,617,819
Unbleached, sq. yds
11,053,618
$759,475 $8.843,106 $7,918,630
Value
8,216,127 6,542,316 66,199,037 66,955,262
Bleached, sq. yds
$873,633
$770,874 $7,433,532 87.724,218
Value
28,957,809 20,815,043 246,118,508 215,936,398
Colored, aQ• yds
14,319,580 $3,283,356 835,655,224 $35,192,566
Value
Cotton Yarn, Thread. &c.
9,737,229
727,517 13,261,593
1,227,067
Carded yarn, lbs
$424,231
$269,768 $4.206.517 13,628,589
Value
8,058,144
789,219
990,464
9,500,167
Combed yarn, lbs
$839.857
8757,497 $6,095,456 87.635,924
Value
Sewing. crochet, darning and
1.035,613
95,276
874,048
85,316
embroidery cotton, lbs
$84,687
$885,436
890,911
$952,930
Value
277,522
2,921,651
235,794
3,451,988
Cotton hosiery, dos. pm
$453.702
$409,248 15.774.752 85,120.904
Value
Report on Hosiery Industry in Philadelphia Federal
Reserve District.
report on the hosiery industry
following
The
preliminary
Members of New York Cotton Exchange to Act On Three
by 131 hosiery mills in the Philadelphia Federal Reserve
Amendments to By-laws.
District, from data collected by the Bureau of the Census,
The members of the New York Cotton Exchange will meet
Is made available by the Federal Reserve Bank of Philaon November 14 to vote on three of the most important amend- delphia:
ments to the by-laws ever considered in the history of the
Exchange-Southern deliveries, the limitation of contracts and
PERCENTAGE CHANGES FROM AUGUST TO SETEMBER 1928.
the appointment of a control committee, according to an anWomen's
Men's
nouncement on Nov. 2. The announcement says:
The proposed amendments, which have been approved by the Board
of Managers upon their submission by the Committee on By-Laws,
are the result of months of study by the Committee of Fifteen, of
which John M. McFadden is chairman. The amendments are to
be voted upon as a whole and if adopted will become effective
at a date to be decided upon by the Board of Managers.
Five pointh are proposed for southern deliveries-Norfolk, Charleston, Galveston, Houston and New Orleans-at which cotton may
be delivered in addition to the present delivery at New York. When
delivery is made elsewhere than Nw York, 85 points are to be
deducted from the invoice price by the deliverer. A new contract
has been drawn naming New York and the five southern cities as
delivery points.
The proposed amendment on limitation authorizes the board to
prescribe a limit of interest in futures contracts on the exchange
in any one month of any individual, firm or corporation. An exception is made where an interest in any one month is entirely
FullfastiotuA
Hosiery knit during month
Net shipments during month
Stock on band at end of month, finished and in the gray
Orders booked during month
Cancellations during month
Unfilled orders at end of month
FellSeamless. fashioned. Seamless.
-1.4
-5.6
+2.4
-11.0
-7.6
-1.2
-6.7
-13.5
+5.0
-53.7
+28.6
+1.8
-6.5
+13.8
+135.1
+13.3
-1.8
+41.7
+232.2
-7.2
-6.2
+9.4
-24.4
+33.2
Athletic.
Total.
Boys'.
Misses & Infants'.
Childrens'.
+15.6
Hosiery knit during month
--2.3
Net shipments during month
finmonth,
of
end
at
hand
on
Stock
+14.1
ished and in the gray
-4.8
Orders booked during month
+147.5
Cancellations during month
+24.2
--13.5
-49.6
--63.6
-1.8
-5.3
+19.8
+14.5
+106.3
-2.9
-33.4
+225.9
-2.9
+20.8
+185.2
4-1S 1
4-411 2
1.2 2
-LA 0
TIntIllail nrclars tot amt nf mnnth
2440
[VoL. 127.
FINANCIAL CHRONICLE
Expansion in Rumanian Oil Industry-Conferences to
Consider Creation of Central Organization for
Exploitation of Existing Pipe Lines.
Due to the rapid expansion of the Rumanian oil industry
the Minister of Industry has begun a series of conferences
with authorized representatives of the oil and refining industries for the consideration of means of creating a large
central organization for the exploitation of existing pipe
lines and the creation of new means of rapid transportation
of oil in the refining industry. The organization will have
a capital of approximately $61,500,000, 55% of which is to
be contributed by the state, the balance to be raised by
the Association of Petrol Manufacturers. An announcement
In the matter, Oct. 24, also says:
When the organization of the new company has been approved, it will
begin construction of a line connecting the producing center in the district
of Prahova with the Port of Constantza on the Black Sea.
The existing network of state pipe lines has a total length of 760
kilometers. These installations include pumping stations, reservoirs, depots and numerous buildings, the pumping stations being situated at
Baicoi and Ploiesti, receiving stations at Giurgiu, Bucharest and Constantza.
The existing conduits have a capacity of 45 carloads with the exception of the kerosene conduit between Baicoi and Constantza which by
neutral gravity has a capacity of 130 carloads a day.
By the creation of the new company, it will be possible to increase
the speed of transportation, facilitating also the proper refining of the
raw material and reducing the price of transportation.
Petroleum and Its Products-Light Oil Outlook Better.
There were no changes in crude petroleum prices this week.
Production is on the increase, due largely to heavier output
in California. This State is expected to show further increases in production. Most of the new production now
developing in California is of low gravity crude, and thus
has little effect upon the general market section. Sante Fe
Springs is expected to develop considerable flush production
of high grade crude early in 1929, however.
Reports from the Mid-Continent area note continued firmness in the position of the high gravity oil market. Reports
from usually well-informed sources indicate the probability
of an advance in the posted price schedule by the first of the
year. Although crude petroleum stocks have shown no material reductions in recent weeks, the heavy demand for high
gravity crude in the Mid-Continent area has prevented any
large accumulation of this so-called "sweet" crude oil. Large
integrated companies, with their own refining units, are not
free sellers of high grade crude at current posted prices, and
some independent operators likewise continue to store all
crude above their contract requirements in anticipation of a
better price later on. Premiums of 10 cents a barrel are
still being paid in many sections of the Mid-Continent area.
The Mission area of Oklahoma is expected to witness the
the next big play in Light oil. Considerable drilling is
planned for that area, getting under way this month, and
production should be reached in about sixty days. Under
present plans of operators with drilling acreage in the area,
production will be held back until about the middle of February.
Current imports of South American crude are running at
record high levels, and this oil still constitutes the dominating factor in the position of the market along the Atlantic
seaboard. Venezuelan oil imports during the first nine
months of the year totaled 34,704,000 barrels, as compared
with 13,041,000 barrels in the same months last year. Current reports from South America indicate that further gains
in shipments to the United States are indicated by the
continued expansion of oil company operations in Venezuela
and Columbia. It was expected in oil trade circles that there
would be some developments shortly in the projected campaign for pro-rating Venezuelan production and temporarily curbing further development work.
11c, per gallon at several principal gasoline marketing
centers. The decline, launched October 30 by Standard
Oil Co. of New Jersey, became general. The export market
was lower on bulk gasoline at 10Uo. for navy, 11Mc. for
bulk naphtha, 123ie. for 64-66 naphtha, and 153c. for
66-68 naphtha, declines of 3ic. to c. per gallon. Prices
on export gasoline advanced at the Gulf, with 60-62 grade
Ho. higher at 10 8c. and 64-66 grade up Mc. at 1134c.
per gallon. A good export demand was reported at the
Gulf, with most of the buying for shipment to Europe.
There were no changes in the tankwagon markets.
Kerosene business was active, and the market was strong
at principal refinery points in the East. Pennsylvania
refiners reduced their prices fractionally, but this did not
affect the market at Bayonne or the other principal Atlantic
coast terminals. Fuel and gas oil sales were of substantial
volume, and prices remained steady at principal refinery
points. Lubricating oils were advanced at Pennsylvania
refinery points, and the New York market reflected these
changes.
The Department of Commerce report covering September
refinery operations disclosed that for the eighth successive
month, runs to stills established a new high record, when
the daily average throughput of crude petroleum was
2,660,000 barrels. Gasoline production also reached a new
high level for daily averages. Exports were heavy and
stocks of gasoline at refineries on September 30 totaled
26,405,000 barrels, which, at the current rate of total
demand, represented 23 days' supply, as compared with
22 days' supply on hand at the close of the previous month
and 28 days' supply on hand September 30 last year. A
chronological summary of the week's price changes followsOct. 27-Pennsylvania refiners advanced bright stock lubricating oils C.
per gallon.
Oct. 30-Pennsylvania refiners advanced steamed refiner cylinder
lubricating oils %c. per gallon.
Oct.30-U.S. Motor gasoline easier at 9% to 9%c.per gallon at Chicago.
against the previous range of 9%c.to 9)4c.
Nov. 1-U. S. Motor gasoline Mc. lower at 93ic. to 9%c. per gallon at
Chicago, with kerosene weak at 53/4c. to 60. a gallon.
Nov. 1-Standard Oil Co. of New Jersey reduced tankcar gasoline gc.
to 11c. at Bayonne. Baltimore, and Parkersburg, W.Ira.
Nov.2-Principal East Coast refiners followed Standard Oil Co. of New
Jersey in its reductions in gasoline prices at Atlantic coast terminals.
Prices are:Gasoline (U. S. Motor)
.11)(
Norfolk
Portsmouth
11
Tampa
11
Jacksonville
11)(
*Oklahoma
09K New Orleans
10%
Providence (deliv.). 123i Houston
0834
California
(19M
Chicago
09)g
North Texas
.11
Baltimore
.11
Philadelphia
.11
Note.-The above prices are f.o.b. refineries, tank car ots, unless otherwise noted.
Delivered prices are generally it. a gallon above the ref nery quotation.
*A number of the large refiners were still quoting 934 to 9)(c.
New York
Chelsea
Tiverton
Boston (tdelivered)-C
11
12
11H
.13
.11
Gasoline (Service Station).
.24
251 Charlotte
nd
New York
24
.21
Charleston
San
Boston
17
24
Chicago
.24
Wheeling
Baltimore
.1934
New Orleans
.21
.21
Norfolk
Parkersburg
Note.-The above prices are retail prices at service stations and include State
taxes in States where a tax is imposed.
Kerosene.
05%1 Philadelphia (delly.) .10
091 Chic ago
New York
.053(
.09 1 Oklahoma
New York (deliv.)-- .101 Philadelphia
Note.-The above prices are f.o.b. refineries, tank car lots, unless otherwise noted.
Delivered prices are generally 10. a gallon above the refinery quotation.
'else°
Bunker Fuel Oil.
.95
1.051 New Orleans
1 05 I Norfolk
New York
.901 California
.85
Charleston
1.05
Baltimore
charge
a
Sc.
of
barrel
f.o.b.
a
for
are
nodes;
made
is
ref
Note.-The above prices
barging alongside.
Gas and Diesel Oil.
.05li I Diesel oil, New York
2.00
Gas oil, New York
Note.-The above prices are f.o.b. refineries.
Export Quotations.
Gasoline. Navy; New York cases_ .2640 Kerosene,s. w., New York,cases._ .1765
.10(1 W. W.,New York, cases
1890
Bulk
Gasoline, New York
Tank Wagon Prices,
18 'Kerosene, w. w., New York
ra
Crude Oil Output in United States Higher.
The
American Petroleum Institute estimates that the
$1.55
$3.45 Illinois
Bradford
1.60 Wyoming, 37 deg_ 1.41 daily average gross crude oil production in the United States
1.80 Lima
Corning
Plymouth
1.28
1.37
1.45 Indiana
Cabell
1.77 for the week ended Oct. 27 1928 was 2,523,700 barrels as
1.55 Wooster
Wortham, 40 deg_ 1.56 Princeton
2.00 Gulf Coastal "A"- 1.20
1.33 Canadian
Rock Creek
preceding week,
Smackover,24 deg. .90 Corsicana, heavy_ 1.00 Panhandle,44 deg- 1.36 compared with 2,504,400 barrels for the
3.25
3.10 Eureka
Buckeye
an increase of 19,300 barrels. Compared with the output
Oklahoma. Kansas and Texasended Oct. 29
$1.49 of 2,466,550 barrels per day for the week
$1.56 Elk Basin
40-40.9
1.33 1927, the current figure shows an increase of 57,150 bar1.16 Big Muddy
32-32.9
1.48
1.76 Lance Creek
44 and above
1.25 rels daily. The daily average production east of California
Bellevue
Louisiana and Arkansas1.00
1.16 Markham
32-32.9
1.75 for the week ended Oct. 27 was 1,888,500 barrels, as com1.31 Somerset
5-35.9
Spindletop, 35 deg. and up---- 1.37
pared with 1,888,600 barrels the previous week, a decrease
of 100 barrels. The following are estimates of daily averREFINED PRODUCTS-GASOLINE GOES LOWER
Lower markets for gasoline developed on the Atlantic age gross production (in barrels) by districts for the peseaboard this week. Tankcar gasoline was reduced Mc. to riods shown below:
Prices are:$3.45
Pennsylvania
FINANCIAL CHRONICLE
Nov. 3 1928.]
DAILY AVERAGE PRODUCTION.
Oct. 27 '28. Oct. 20 '28. Oct. 13 '28. Oct. 29 '27.
757,700
748,500
743,350
738,050
98,450
105,350
98,300
97,200
89,550
65,300
68,650
67,850
78,650
90,550
91,400
90,100
54,450
54,75058,750
55,150
335.650
210,950
333,600
336,850
21,950
28,750
22,550
22.200
26,550
26,550
26,600
25,200
38,650
38,550
39,550
50,850
83,250
84,700
82,300
100,050
110,400
113,150
125,050
103,500
19,500
14,800
20,550
20,100
115,000
114,000
114,500
115,000
63,900
63,050
52.000
60,200
12,350
11,200
13,700
10,700
7,300
7,250
7,000
7,450
1,900
2,250
3,000
3,400
635,200
615,800
629.600
620,000
Weeks EndedOklahoma
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
Total
2,523,700 2,504,400 2,505.500 2,466,550
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 Oct. 27 1928 was 1,555,400 barrels, as compared with 1,559,100 barrels for the preceding week, a decrease of 3,700 barrels. The Mid-Continent
production, excluding Smackover, Arkansas heavy oil, was 1,500,350 barrels, as compared with 1,503,850 barrels, a decrease of 3,500 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 EndedOklahomaOct. 27. Oct. 20.
North LouisianaOct. 27. Oct. 20.
Tqnkawa
11,950 12,000 Ilaynesville
5,800 5,800
Burbank
27,000 27,500 Urania
6,300 6,350
Bristow Slick
20,700 20,800
ArkansasCromwell
8,850 8,700 Smackover,light
7,150 7,250
Seminole
42,600 42.6130 Smackover,heavy
55,050 55,250
51,350 50,200 Champagnolle
Bowlegs
11,600 10,400
Searight
11,650 11,750
Coastal TexasLittle River
127,300 131,150
Earlsboro
79,400 80.900 West Columbia
7.500 7,550
126,150 125,500 Pierce Junction
St. Louis
11,900 12,000
23,400 23,450 Hull
Allen Dome
12,850 12,700
Panhandle TexasSpindletoP
38,600 36,200
Hutchinson County---- 30,800 30,600
Coastal LouisianaCarson County
6,150 6,400
Vinton
4,200 3,100
County
Gray
28,650 25,400
East HackberrY
3,400 3,400
Wheeler County
900
800 Sweet
Lake
2,200 2,650
North Texas1,950 3,250
Wilbarger
33,600 35,000 Sulphur Dome
WyomingArcher County
19,500 19,300
Salt Creek
West Central Texas40,200 39,300
Shackelford County
10.700 10,650
Montana
Brown County
10,900 11,000 Sunburst 8,300 8.300
Texas
West
CaliforniaReagan County
17.700 17,700
Howard County
31,700 28,800 Santa Fe Springs
38,200 37,000
74.000 71,800 Long Beach
Pecos County
190,000 186,000
Crane & Upton Counties 55,200 55,050 Huntington Beach
51,000 52,000
Winkler County
146,000 152,250 Torrance
16,000 16,000
Bast Central TexasDominguez
10,000 10,500
Corsicana Powell
9,800 9,800 Rosecrans
5,000 5,300
700
Nigger Creek
700 Inglewood
28,000 28,000
Southwest TexasMidway-Sunset
74,000 74,000
13,250 13,150 Ventura Ave
Luling
54,000 53,500
9,000 9,100 Seal Beach
Laredo District
24500 25 500
Natural Gasoline Production at Higher Level.
Acording to the U. S. Bureau of Mines, Department of
Commerce, the total output of natural gasoline in September
amounted to 145,000,000 gallons. This represents a daily
average of 4,830,000 gallons, an increase over August of
190,000 gallons and over September 1927 of 290,000 gallons.
The output of the Appalachian, Illinois-Kentucky, Oklahoma, Texas and Louisiana districts showed increases, Kansas, Arkansas and Rocky Mountains were unchanged, while
the California district was lower. The Bureau further
shows:
2441
To the estimated domestic consumption in these three
industries is added report of manufactures for export,
which includes plate and sheet, rods and wire, and all other
primary fabrications of copper and brass for export.
Consumers Take Big Tonnage-Buying Interest
Slackens Somewhat at Higher Levels-October Export
Sales Big.
Heavy sales of copper at advancing prices featured operations in the market for nonferrous metals in the past week.
Compared with the price named a week ago the advance in
copper amuonted to '/2-cent a pound. One or two producers
quote 16% cents delivered in the East, but only one small lot
changed hands at that figure, "Engineering and Mining Journal" reports. Most sellers appear to be against any further
advance if it can be avoided and continue to quote 16 cents.
The volume of sales has fallen off somewhat at the 16-cent
level the report continued as follows:
Copper
Most of the copper sold has been for January delivery, and it is
thought that consumers' requirements for that month must now be
pretty well satisfied. The principal activity is in wire and sheets,
though the brass mills are also doing a record business.
Foreign sales in October were heavy, the tonnage being approximately
the same as in the preceding month, or around 85,000 long tons.
Copper exporters advanced the c.i.f. price to 164 cents, accompanying the most recent uplift in quotations with an announcement that
it was the opinion of the producers that consumers were buying
in excess of actual requirements and that if they were to tamper
their demands, increased mine production would be ample to take
care of actual requirements and a runaway market would be avoided.
The statement perhaps applies to domestic consumers even more
than to foreign buyers.
Tin moved slightly higher in the past week with lead and zinc prices
steady.
Sharp Increase in October Iron Output.
Estimates of pig iron production for October indicate a
sharp increase over September. Figures collected by wire
by the "Iron Age" on Oct. 30 from companies estimating
their output for the last 3 days in most cases, show the
October total to be approximately 3,372,000 gross tons, or
nearly 108,800 tons per day for the 31-day month. Compared with 102,077 tons per day made in September, this
is an increase of about 6.5%. The October daily rate is
therefore the largest in the last 17 months, or since May,
1927, when it was 109,385 tons per day. It is also the
largest daily rate for October since 1918, when it was 112,482 tons. In fact, there have been but two October daily
rates exceeding that of this year-in 1918 and 1916.
Reports indicate a net loss of 2 furnaces during October-8 furnaces were blown in and 10 were shut down. Apparently, therefore, 195 furnaces were operating at the end of
the month as against 197 on Oct. 1.
Actual production returns for October will be published
next week and the estimates of daily rate and of furnaces
in blast may be somewhat altered by the final figures.
OUTPUT OF NATURAL GASOLINE
(In thousands of gallons.)
Natural Gasoline.
Stocks End
Of Month.
Sept.
1928.
Appalachian
Ill., Ky.,&c
Oklahoma
Kansas
Texas
Louisiana
Arkansas
Rocky Mountain
California
Aug. Jan.-Sept. Sept. Sept. Aug.
1928.
1928.
1927. 1928. 1928
6.800 5.800
1,000
900
48.400 47,700
2,900 2,900
28,100 26,200
4,700 4,600
2,700 2,700
4,200 4,200
46,200 48,700
United States total
72,000 5,600 2,083 1,640
10,300 1,200
284
270
439,200 47,600 7,507 7,643
26,200 2,900
648
628
239,400 26,300 4,559 4,207
41,100 3,800
859
729
24,200 2,600
292
443
34,000 3,900
748
532
399,400 42.400 1,303 1,316
145,000 143,700 1,285,800 136,300 18,323 17,408
4,830
Daily average
4.640
4,690
4,540
Estimated Copper Consumption by Electric, Auto and
Building Trades.
W. R. Ingalls, director of the American Bureau of Metal
Statistics, according to the "Wall Street Journal" of Oct.
31, estimates copper consumption for the third quarter of
1928 and for preceding quarters, in three of the important
copper requiring industries, as follows, in short tons:
1928First quarter
Second quarter
Third quarter
Total
1927First quarter
Second quarter
Third quarter
Fourth quarter
Total
Electric
Manufactures,
45,000
54,500
54,000
Automobiles.
26,600
32,000
32,000
Build(nos.
11,400
12,100
15,500
153,500
90,600
39,000
48,800
45,500
49.000
48,000
54,000
24,100
28,300
24,600
17,600
11,300
10,700
12,800
11,300
12,800
15,600
14,200
13,500
196,500
94,600
46,100
56,100
Manufactures
for Export.
16,400
16,200
16,200
Annual Meeting of Copper & Brass Research Association-R. L. Agassiz Re-Elected President.
At the eighth annual meeting of the Copper & Brass
Research Association held on Oct. 25 at its office, 25 Broadway, New York City, R. L. Agassiz, Chairman of the Calumet & Heela Consolidated Copper Co., was re-elected
President. The following were elected members of the Board
of Directors, the first nine comprising the Executive
Committee:
R. L. Agassiz, Chairman Calumet & Reda Consolldqted Copper Co.
Walter Douglas, President Phelps Dodge Corp.
Thomas D'A. Brophy, Anaconda Copper Mining Co.
Stephen Birch, President Kennecott Copper Corp.
Charles Hayden, Vice-President Nevada Consolidated Copper Co.. Ray
Consolidated Copper Co., Utah Copper Co.
John A. Coe, President The American Brass Co.
F. S. Chase, President Chase Brass & Copper Co., Inc.
Edward H. Binns, President C. G. Hussey & Co.
Barton Haselton, President and General Manager Rome Brass & Copper Co.
J. W. Allen, Treasurer Greene Cananea Copper Co., Inspiration Consolidated Copper Co.
Charles F. Ayer, President Magma Copper Co.
Francis J. Bassett, Sales Manager Tauntor-New Bedford Copper Co.
Julla.n B. Beaty, Vice-President Nichols Copper Co.
H. C. Bellinger, Vice-President Chile Exploration Co.
J. C. Clendenin, director Braden Copper Co.
W. R. Webster, Vice-President Bridgeport Drags Co.
B. Goldsmith, President The National Brass & Copper Co.
E.0. Goss, President Scovill Manufacturing Co.
0. V. Jenkins, Treasurer Utah Copper Co., Sec.-Treas. Nevada Consolidated Copper Co., Asst. Treas. Ray Consolidated Copper Co.
William Loeb. Vice-President American Smelting & Refining Co.
H. B. Paull, Auditor Calumet & Arizona Mining Co., New Cornelia
Copper Co.
Sam A. Lewisohn, Vice-President and Treasurer Miami Copper Co.
O. M. Loeb, President American Metal Co., Ltd.
Charles W.Clark, President United Verde,Copper Co.
2442
FINANCIAL CHRONICLE
At a meeting of the Board of Directors the following
officers were elected: President, R. L. Agassiz; Vice-Presidents, F. S. Chase, Walter Douglas, Barton Haselton,
Thomas D'A. Brophy; Treasurer, Stephen Birch. William
A. Willis, who has managed the association since its formation, was re-elected to that position. John F. Gowen was
re-elected Secretary.
The following companies now comprise the membership
of the Association:
Copper Mining, Smelting
The American Metal Co., Ltd.
American Smelting & Refining Co.
Anaconda Copper Mining Co.
Arizona Commercial Mining Co.
Braden Copper Co.
Calumet & Arizona Mining Co.
Calumet & Hecla Consol. Copper Co.
Chile Exploration Co.
Greene Cananea Copper Co.
Inspiration Consolidated Copper Co.
Isle Royal Copper Co.
Kennecott Copper Corp.
Magma Copper Co.
and Refining Companies.
Miami Copper Co.
Mother Lode Coalition Mines Co.
Nevada Consolidated Copper Co.
New Cornelia Copper Co.
Nichols Copper Co.
Old Dominion Co.
Phelps Dodge Corp.
Ray Consolidated Copper Co.
Shattuck Denn Mining Corp.
United Verde Copper Co.
United Verde Extension Mining Co.
Utah Copper Co.
White Pine Copper Co.
Copper and Brass Fabricating and Distributing Companies.
The American Brass Co.
New Haven Copper Co.
Bridgeport Brass Co.
New Jersey Wire Cloth Co.
Chase Brass & Copper Co., Inc.
The Paper & Textile Machinery Co.
T.E. Conklin Brass & Copper Co.
The J. M.& L. Z. Osborn Co.
Dallas Brass & Copper Co.
Rome Brass & Copper Co.
C. G. Hussey & Co.
Scovill Manufacturing Co.
Mueller Co.
Taunton-New Bedford Copper Co.
The National Brass & Copper Co.
Foster Wheeler Corp.
New England Brass Co.
Wolverine Tube Co.
Pig Iron Supersedes Finished Steel as Leader-Railro:d
Demand Expanding-Pig Iron Prices Advance
Sharply-Steel Prices Show Slight Increaese.
Impending purchases of railroad equipment arid seasonal
orders for rails, a sustained demand for pig iron that has
forced prices to still higher levels and further signs of strength
in finished material, particularly bars, are encouraging
features of the iron and steel market, states the "Iron Age"
of Nov. 1, which is further quoted as follows:
Developments of the week, however, do not all point in the same direction. The steady advance in heavy steel scrap at Pittsburgh, which began
in July, has been interrupted by a 25c. a ton decline. Further evidences
of the tapering operations of the automobile industry have been brought to
light,and a,gradual reduction of mill backlogs with a corresponding shortening of deliveries is indicated.
Steel production, however, holds at close to 90%,and pig iron output has
reached a record rate for the year.
Telegraphic estimates of pig iron production for October collected by
the "Iron Age" indicate a total of 3,373,000 gross tons for the 31 days, or
108,800 tons per day. The daily output exceeds that of September by
6.5% and is the highest in 17 months. It was also the best average for
October reached in any year except 1918 and 1916.
Of particular interest in the steel trade are accumulating indications that
diminishing demands from some consumers are likely yo be offset by heavier
demands from othees.
The seasonal rail buying movement brought out orders during the week
for 159,600 tons from the Pennsylvania and 50,000 tons from a Western
road. The St. Paul is in the market for 50,000 tons, and early inquiries
are expected from the Burlintgon, the North .Wesetern and the Illinois
Central. While rail orders may be smaller than last year, options on additional tonnage are likely to be proportionately larger, as was the case with
the Pennsylvania.
Railroad equipment Inquiries include one for 3,000 cars from the Missouri
Pacific. Buying programs to be launched after election call for upward
of 40,000 cars, more than half of which are likely to be placed before the
Close of the year. Freight car orders so far this year have totaled less than
30.000 cars, the poorest showing since 1921.
Another outlet for steel that is reopening is shipbuilding, which is being
stimulated by the Merchant Marine Act. The steel required for five vessels to be built on the Atlantic seaboard totals 17,200 tons.
Fabricated steel awards, including an informal contract for 11,300 tons
for New York subways, aggregate nearly 42,000 tons, the largest total in
six weeks.
Automobile output, although undergoing a seasonal decline,is nevertheless higher than usual for this time of the year. Steel orders for the new
Chevrolet model have been delayed a week or two, but the demands of
the Ford company are increasing in conformity with a steady gain in out
put, which has now reached more than 5.500 units daily.
Shipments of finished steel exceed bookings in virtually all districts except Chicago. Pressure for deliveries is heavy in both the Cleveland and
Chicago districts, specifications in the latter market having been the largest
for any week this year.
Finished steel prices are strong in most centers, with steel bars well established at 1.95c. Pittsburgh or $1 a ton above the recent minimum. Despite
occasional shading on black sheets in the Eaat, most reports indicate a firm
sheet market, with advances of$2 to $3 a ton for next quarter a probability.
The tin plate price for the first half of 1929. soon to be named,is unlikely
to show any change from the present quotation of $2.25 per base box. Pittsburgh.
The upward swing of pig iron prices has not yet been halted. In the
Chicago, Valley and Buffalo markets all grades went up 50c. a ton. At
Philadelphia, basic pig iron rose 25c. a ton on a 10,000-ton sale. A scarcity
of basic grade is particularly pronounced in the Valleys. Sales of foundry
and malleable iron at Cleveland totaled 42,000 tons, compared with 38,000
tons the prev'ous week. Furnace stocks of merchant iron have been sharply
reduced.
The reaction in scrap prices at Pittsburgh, although interpreted there as
reflecting less urgent demand.,on the steel mills, finds little support in other
important market centers. Although a less buoyant situation is reported
at Youngstown and Philadelphia, stronger prices are the rule elsewhere,
with heavy melting scrap 50c. a ton higher at Chicago and Cleveland and
25c. higher at St. Louis.
Spot furnace coke prices at Connellsville, although unchanged, are growing easier in keeping with an increase in available supplies of the fuel.
Exports of iron and steel in September, although 20% below those of
August. were 39% larger than a year ago. Exports in the first nine months,
excluding scrap,showed a gain of 143i% over the same preiod in 1927.
[VOL. 127.
The "Iron Age" composite price for finished steel has advanced from
2.362c. to 2.369c. a lb., the highest figure since June 1927. The pig iron
composite has risen from $17.92 to $18.25 a ton-the first time it has been
above $18 in more than a year. A comparative table shows:
•
Finished Steel.
Oct. 30 1928, 2.369e. a pound.
One week ago
2.3620.
One month ago
2.362c.
One year ago
2.293c.
10-year pre-war average
1.6890.
Based on steel bars, beams,tank plates.
wire, rails, blaCk pipe and black sheets,
these products constituting 87% of the
United States output of finished steel.
High.
Low.
1928_2.364c. Feb. 14 2.314c. Jan. 3
1927--2.453c. Jan. 4 2.293c. Oct. 25
1926_2.453o. Jan. 5 2.403c. May 18
1925-2.560c. Jan. 6 2.396c. Aug. 18
1924_2.789c. Jan. 15 2.460c. Oct. 14
1923_2.824c. Apr. 24 2.446c. Jan. 2
Pig iron.
Oct. 30 1928, 318.25 a gross ton.
$17.92
One week ago
17.84
One month ago
17.54
One year ago
15.72
10-year pre-war average
Based on average of basic iron at Valley
furnace and foundry irons at Chicago,
Philadelphia, Buffalo, Valley and Birmingham.
Low.
High.
1928_$18.25 Oct. 30 $17,04 July 24
1927._ 19.71 Jan. 4 17.54 Nov. 1
1926___ 21.54 Jan. 5 19.46 July 13
1925___ 22.50 Jan. 13 18.96 July 7
1924_ 22.88 Feb. 26 19.21 Nov. 3
1923___ 30.86 Mar. 20 20.77 Nov.20
Pig iron has decisively superseded finished steel as the
leader of the iron and steel markets according to the "Iron
Trade Review" of Cleveland Nov. 1. Continued heavy
consumption negligible stocks on both producers' and consumers yards, withdrawal of steelworks from the merchant
market and the gradual shrinkage of merchant iron making
capacity combine for a tight situation, adds the "Reviews"
summary continuing:
Forty-five thousand tons of basic iron is on inquiry by Northern Ohio
consumers, and an offer of $17.50, valley, or $1.25 over the market of
thirty days ago. has proved futile. Bessemer iron at $18, valley, represents
an advance of$1 per ton over a month ago. Supplies both grades continue
to grow scarcer.
The second 50-cent rise at Buffalo in two weeks affects distant as well
as local sales. At Detroit the foundry and malleable grades both are up
50 cents. Chicago producers have announced the fourth 50 cent rise since
Aug. 20. At Cleveland 42,000 tons has been sold in the past week. St.
Louis sales have been the heaviest of the year.
This picture of strength in pig iron is rounded out by production, whicb
in October rose to the highest daily average in 17 months. At 107,549
tons the October rate compares with 102,120 tons in September and 90,710
tons last October. The month's total was 3.334,024 tons against 3,063,530
tons in September and 2,812,015 tons in October 1927. October's good
showing puts the 10-month total for 1928 ahead of the similar period of
1927. the comparison being 31,117.786 tons to 30,929,041. Despite numerous changes, the number of active blast furnaces at the close of October
was the same as at the end of September-194.
Finished steel, meanwhile, continues to correct its position. Three
weeks after a similar development in demand, production has passed the
crest of the present bulge and is receding moderately. It may be that prices,
which recently have been subordinate to prompt delivery, will also undergo
some pressure. Only last week Charles M.Schwab. president of the American Iron & Steel Institute, warned of the futility of cutting prices as demand ebbs.
This easing of the strain in finished steel by no means dims the outlook.
Many producers of steel sense that the market has made rapid-perhaps
too rapid-strides in the past 60 days and that a period for establishing
sound values must precede the further progress indicated by basic factors.
Some seasonal factors are at work and while the effect of the national election has been minimized, its imminence cannot be overlooked.
The character of steel demand has changed in this period of adjustment.
While general buying has subsided inquiry for tonnage requirements which
was so marked last week in the railroad equipment market, has developed
rapidly. October undoubtedly has set the fourth consecutive monthly
ingot production record. Backlogs accumulated by the mills since early
September are cushioning the present easier tendency in mill schedules.
Soft steel bars at Chicago and sheets and strip in the Pittsburgh and
Youngstown districts are notable exceptions to this moderate reaction.
Specifications for cars, especially from forging interests, have been at the
heaviest rate of the year in the Chicago district. New busines in strip.
chiefly from the automotive users, has equaled shipments. Sheet demands
In the Pittsburgh and Youngstown districts continue to tax mill capacity.
In addition to heavy tonnage in prospect from freight car programs.
plate mills will benefit from growing oil country needs. Chicago mills have
booked 10,000 tons for southwestern tankage and have 5,000 tons more
on inquiry. A pipe line for Philadelphia and a steamship placed with the
New York Shipbuilding Corp. each call for 7,000 tons.
Freight car awards in October are tentatively placed at nearly twice the
1,378 of September but the bulk went to the railroads' own shops. Nearly
5,700 cars are now pending, exclusive of a prospective 3,000 each for the
Missouri Pacific and Wabash and indefinite programs by the Illinois Central, Santa Fe and Frisco lines. The Pennsylvania railroad has distributed
159,600 tons of rails, a western carrier has ordered 40,000 tons at Chicago.
and the New York Central nears action on 190,000 tons.
Steelmaking operations this week average just over 85% with Steel
corporation subsidiaries at 86% and independents at about 88. Chicago
and Mahoning valley mills are at 85 per cent, the Pittsburgh district at
85 to 88% and Buffalo at 90.
Pacific coast users of steel bars have been heavy buyers on the Continent, state:3Jan "Iron Trade Review" cable from London. The British
Steel association is continuing October prices into November. The Far
East has been a good buyer of Welsh tin plate. The British pig iron situation is improving though not sufficiently to warrant the lighting of additional furnaces.
The "Iron Trade Review "composite of fourteen leading iron and steel
products continues to rise, advancing 10 cents this week to $35.73, the
highest since April.
The "American Metal Market," Oct. 31, says:
The October lull in steel buying, following the September rush, was lees
pronounced than expected. Prompt buying experienced little diminution,
while already there has been a fair volume of specifying on fourth quarter
contracts, although buyers specified their third quarter contracts quite
fully.
Delivery promises on new orders for sheets and bars have shortened
somewhat, but still involve quite a period, about four weeks in sheets and
2 to 4 weeks in bars. In other products substantially prompt shipment has
been available right along.
Automobile production is only slightly decreased, scarcely enough to
make a noticeable difference in total demand for the lines chiefly affected,
hot rolled bars, cold finished bars, sheets and strips.
The Daily Metal Trade is quoted as follows:
Principal Buffalo Pig iron producers have announced a new scale of prices
for both last quarter 1928 and first quarter 1929 delivery of $18.50 local
and $19 delivered for malleable.
Nov. 3 1928.]
FINANCIAL CHRONICLE
Cincinnati heavy scrap, which was quoted at $13.75 and $14.25, has
moved up and is quoted at $14 to $14.50.
The Central Alloy Steel Corp. is on the market for 25,000 tons of basic
iron and Timken Roller Bearing for 10,000 tons.
Heavy demands for pig iron for early shipment continue
to come into the local market, reports the "Wall Street
Journal" of Oct. 30. Last week's sales were considerably
higher than the average of recent weeks, New York agents
soiling about 20,000 tons. The greater part of this business
was booked for delivery this year, continues the "Journal,"
adding:
2443
Bituminous Coal and Anthracite Production Lower.
-Coke Output Higher.
According to the United States Bureau of Mines, the output of bituminous coal during the week ended Oct. 20
amounted to 10,832,000 net tons, an increase of 547,000
tons over the figure for the corresponding period a year
ago, but 442,000 tops less than the total for the week ended
Oct. 13 1928. Output of anthracite during the week ended
Oct. 20 1928 is estimated at 1,995,000 net tons, as against
2,003,000 tons in the preceding week and 1,799,000 tons in
the week ended Oct. 22 1927. Production of beehive coke
in the United States during the week ended Oct. 20 1928 totaled about 99,000 net tons, an increase of 8,000 tons as
compared with the preceding week, but a decrease of 6,000
tons as compared with the corersponding period in 1927.
The Bureau of Mines report is as follows:
Insistence on delivery indicates the market is in an unusually healthy
condition. Although orders have been heavy for the past month or so,
specifications have been Just as heavy, and it is clear consumers are not
buying for speculation, but against actual and imminent requirements.
There are indications that some consumers have missed the market.
Buffalo furnaces are quoting $17.50 for No.2 foundry iron for outside shipment, while in the home district they are quoting $18.50, a premium of
$1 a ton, whereas formerly it was 50 cents. Eastern Pennsylvania makers
are still quoting $20 for No. 2 foundry, but are asking 50 cents a ton higher
for 1929 business.
Makers of ferromanganese have stated prices for next year will be the
Bituminous Coal.
same as currently quoted, $105 a gross ton, at seaboard.
The total production of soft coal during the week ended Oct. 20,including
Domestic producers of ferrosilicon have opened books for 1929 contracts lignite and coal coked
at the mines, is estimated at 10,832,000 net tons.
at the same prices as prevailed for 1928, or $83.50 a gross ton, in carload Compared with the output in
the preceding week, this shows a decrease
lots, freight allowed, for the 50% grade.
of 442,000 tons, or 3.9%•
Miners in Bicknell (Ind.) Coal Fields Vote to Accept
New Scale.
The Indianapolis "News" reported the following from
Terre Haute, Oct. 29:
Miners of the Bicknell coal fields accepted the new wage scale, which was
agreed on by the $6.10 scale committee representing both miners and
operators of district No. 11 two weeks ago when they voted 1,126 for the
contract, with 545 votes being cast against in the referendum held in the
district Saturday.
Results of votes are. American, No. 1. 422 for and 14 against; American,
No. 2, 194 for and 8 agairst; Panhandle, 139 for and 20 against; Supply,
12 for and none against; Knox, 69 for and 6 against; West Phialia, fourth
vein, 13 for and 7 against, and Indiana creek, 160 for and 4 against.
Bicknell has suffered from the coal strike more than any other field in
the district. Trouble occurred over eighteen months ago between the
operators and miners and there has been no work there since.
About six years ago the Bicknell field was considered the center of the
State coal industry. At that time there were fourteen local unions. There
are seven at the present time in five mines. Many of the miners have gone
to other parts of the country to work.
No other results have been received from other fields, but the same results
are cupected.
Monthly Production of Coal in September.
Below are given the first estimates of production of bituminous coal, by States, for the month of September. The
distribution of the tonnage is based in part (except for certain States which themselves supply authentic data) on figures of loadings by railroad divisions, furnished to the
U. S. Bureau of Mines by the American Railway Association
and by officials of certain roads, and in part on reports
of waterway shipments made by the U. S. Engineer office.
The total production of bituminous coal for the country as
a whole in September is estimated at 41,301,000 net tons, in
comparison with 41,108,900 tons in August and 41,763,000
in September 1927. The average daily rate of output in September was 1,693,000 tons, an increase of 170,000 tons, or
11.2% over the average daily rate of 1,523,000 tons for
August.
Anthracite production in the month of September amounted to 6,036,000 net tons, as compared with 6,883,000 tons
in August and 6,596,000 in September 1927. The average
daily rate of output in September was 252,000 tons, a decrease of 3,000 tons, or 1.2%, from the rate for the month
of August.
Estimated United States Production of Bituminous Coal (Net Tons), Ind. Coal Coked.
1928
1927
Cal. Year
Cal. Year
Week.
to Date.
Week.
to Date.a
Oct.6
11,039,000
364,013,000
10,286,000
403,157,000
Daily average
1,840,000
1,537,000
1,714,000
1,703,000
Oct. 13.6
11,274,000
375,287,000
10,550,000
413,707.000
Daily average
1,879.000
1,546,000
1,758,000
1.705.000
Oct. 20_c
10,832,000
386,119,000
10.285,000
423,992,000
Daily average
1,805,000
1,552,000
1.714,000
1,705,000
a Minus one day's production first week In January to equalize number of days 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 Oct. 20 (approximately 249 working days) amounts to 386,119.000
net tons. Figures for corresponding periods in other recent years are given
below:
1927
1926
1925
423,992,000 net tons
439,519,000 net tons
398,409,000 net tons
1924
1923
1922
376 964,000 net tons
461,487.000 net tons
311,844,000 net tons
As already indicated by the revised figures above, the total production
of soft coal for the country as a whole during the week ended October 13
amounted to 11,274.000 net tons. Compared with the output in the
preceding week, this is an increase of 235.000 tons, or 2.1%.
Estimated Weekly Production of Soft Coal by States (Net Tons).
Week Ended
Oct. 1928
Oa.6'28. Oct. 15 '27. Oct. 16 '26. Average.a
330,000
357,000
444,000
398.000
57,000
50,000
38,000
28,000
218,000
297,000
240,000
217,000
1,313,000
1,159,000
1,445,000
1,558,000
328,000
231,000
491,000
520,000
65,000
32,000
103,000
116,000
45,000
67,000
106,000
91,000
1,071,000
1,048,000
992,000
764.000
376,000
411,000
365,000
238,000
60.000
58,000
66,000
35,000
8,000
17,000
17,000
28,000
83,000
79,000
70,000
70,000
85,000
84,000
76,000
82,000
56,000
64,000
57,000
58,000
35,000
53,000
44,000
36,000
393,000
148,000
612,000
817.000
77,000
88,000
68.000
60.000
2,750,000 2,565,000 3.223,000
3,149,000
116,000
90,000
127,000
118,000
20.000
23,000
29,000
26,000
118,000
109,000
102,000
121,000
257.000
262,000
304.000
231,000
51,000
55,000
68.000
68,000
2,143,000 2,106,000
2,227,000
1,521,000
830.000
863.000
820,000
772,000
153,000
186,000
141.000
184,000
1,000
6.000
5,000
4,000
State-ES
Oct. 1328.
Alabama
314,000
Arkansas
48,000
Colorado
202,000
Illinois
1,166,000
Indiana
334,000
Iowa
68.000
Kansas
50,000
Kentucky-Eastern. 1,119,000
Western
377,000
Maryland
60,000
Michigan
6,000
Missouri
80,000
Montana
84,000
54.000
New Mexico
42,000
North Dakota
Ohio
418,000
Oklahoma
73,000
Pennsylvania
2 852,000
Tennessee
118,000
21,000
Texas
127,000
Utah
273,000
Virginia
Washington
39,000
W.Va.-Southern b_ 2,318,000
Northern _c
875,000
157,000
Wyoming
1.000
Other States
Toe1b.tuminouseoa111,274,000 11,039,000 10,508,000 12.280,000 11,310,000
Pennsylvania anthra. 2.003.000
1,915,000
1,794,000
2,079,000
1.968,000
13,277,000 12,954,000 12,302,000 14.359,000 13,278,000
Total all coal
a Average rate maintained during the entire month. b Includes operatioss on
the N. Sz W.. C. de 0.. Virginian, K.& M., and Charleston division of the B.& 0.
c Rest of State, including Panhandle.
Ant/gracile.
The total production of anthracite during the week ended Oct. 20-1s
estimated at 1,995,000 net tons, a decrease of 8,000 tons, or 0.4%,from the
revised estimate for the preceding week. Production during the week in
1927 corresponding with that of Oct. 20 amounted to 1,799,000 tons.
• Estimated Production of Coe by States in September (Net Tons) a.
Sept. 1928. Aug. 1928. Sept. 1927. Sept. 192(1, Sept.
Stale1923.
Alabama
1,288,000
1,307.000
1,664,000
1,741,000
1,643,000
215,000
Arkansas
180,000
174,000
127,000
126,000
895,000
Colorado
762,000
1,060,000
946,000
866,000
4,080,000
3,710,000
Ilinois
1,006.000
5,392,000 6,424,000
1,220,000
Indiana
1,152,000
1,359,000
1,907,000
2,226,000
248,000
Iowa
224.000
76,000
359,000
474,000
152,000
114,000
Kansas
278,000
380,000
385,000
Kentucky-Eastern 4,240,000 4,500,000 4,491,000 4,185,000
2,886,000
1,300,000
Western
1,156,000 2,106,000
1,398.000
1,006,000
230,000
Maryland
230,000
257,000
260.000
164,000
45,000
51.000
Michigan
77,000
52,000
109,000
305,000
Missouri
277,000
246,000
254,000
296,000
325,000
263,000
Montana
275,000
261,000
275.000
225,000
243,000
259,000
New Mexico
229.000
229,000
135,000
66,000
104,000
North Dakota
119,000
109,000
1,420.000
1,398,000
734,000
Ohio
2,273,000
3,488,000
280,000
230.000
367,000
Oklahoma
244,000
263.000
10,137,000 10,220,000 10,779,000 12,672,000
Pennsylvania
14,517,000
450,000
460,000
459.000
Tennessee
478,000
433,000
90,000
82,000
115,000
Texas
107,000
104,000
475,000
367.000
414,000
Utah
373,000
417,000
1,025,000
1,040,000
1,110,000
Virginia
1,206,000
9)1,000
200,000
182.000
226,000
Washington
238.000
236,000
W.Va.-Southern b. 8,520,000 8,940,000 9,676,000 9,322,000 6,122,000
3,176,000
3,435,000
3,820,000
Northern_c
3,420,000
3,318,000
620,000
514,000
609.000
Wyoming
600,000
669,000
5,000
5,000
22,000
Other States d
16,000
15,000
Total bitumincus_ _41,301,000 41,108,000 41,763,000 48,559,000 47.841,000
Pennsylvania anthra_ 6,036,000 6,883,000 6,596,000 8,388,000
2,853.000
United States total
99,000
91.000
105,000 3,416,000 6,119,000
Daily average
.15,200
16,500
17,500
13,600
24,400
a Minus on day's production first week in January to equalize number of days in
revision.
the two years. b Subject to
47,337,000 47,991,000 48,359,000 56,947,000 50,694.000
Total all coal
a Figures for 1927, 1926 and 1923 are final. b Includes operations on the N.& W..
C. & 0., Virginian, K. & M., and Charleston division of the B. A) 0. c Rest of
State, Including Panhandle. d This group is not strictly comparable in the several
years.
Accordinz to figures prepared by the National Coal
Association the estimated total output of bituminous coal
in the United States during the week ended Oct. 27 was
11,300,000 net tons.
Estimated United States Production of Anthracite (Net Tons).
1928-1927
Cal. Year
Cal. Year
Week EndedWeek.
to Date.
Week.
to Date.a
Oct. 6
1,915,000
56,412,000
1,597,000
61,867,000
Oct. 13
2 003.000
58,415,000
1,794,000
63.661,000
Oct. 20.6
1,995,000
60,410,000
1,799,000
65,480,000
a Minus one day's production first week in January to equalize number of daysin
the two years. b Subject to revision.
Beehive Coke.
The total production of beehive coke during the week ended Oct. 20 is
estimated at 99.000 net tons, as against 91.000 tons in the preceding week.
Production during the week in 1927 corresponding with that of Oct. 20
amounted to 105,000 tons.
•
Estimated Production of Beehive Coke (Net Tons).
Oct. 20, Oct. 13, Oct. 22,
1928
1927
Week EndedPennsylvania and Ohio__
West Virginia
Ala., Ky., Tenn. and Oa_
Virginia
Colorado, Utah (4 Wash
to
to
67,006
73,00e 2.424,000 4.683,000
11,000
15,000
484,000
655,000
3,000
5.000
127.000
210,000
5,000
5,000
200,000
270,000
5,000
7,000
181.000
301,000
•
79.000
8,000
2.000
5,000
5,000
[Vol.. 127.
FINANCIAL CHRONICLE
2444
and payrolls for recent months, made public by the Bank
Figures of Employment and Wages in Pennsylvania Oct. 30, are shown below:
Anthracite Collieries Above Those for AugustINDEX NUMBERS-1923-25 MONTH AVERAG100.
Decline as Compared with September Year Ago.
Wage Payments.
Employment
Further seasonal expansion of operations occurred in the
1028.
1927.
1926.
1928.
1927.
1926.
anthracite industry in September, according to index num98.7
112.4
8.2
119.6
120.2
8.1
96.0
105.9
10.3
bers prepared by the Federal Reserve Bank of Philadelphia, January
113.6
119.2
36.7
February
88.5
91.3
120.0
107.7
114.3
111.4
March
on the basis of reports received by the Anthracite Bureau of April
86.1
93.0
115.7
112.3
115.5
114.6
122.1
120.1
128.0
115.9
119.0
115.8
May
Information from leading collieries in Pennsylvania. Em- June
92.8
126.6
131.1
113.8
118.7
116.9
62.0
86.3
115.5
103.1
116.9
116.9
ployment was 2.7% larger in September, but was still 6.7% July
*86.7
90.5
123.6
*107.9
117.1
117.8
August
92.5
below the level of the same month in 1927. A gain of 6.7% September
112.0
126.2
____
118.0
118.7
--109.4
134.6
___
119.8
118.9
occurred in payrolls between August and September, al- October
---116.2
115.0
____
119.3
116.6
November
OR I
127A
11O7
ito fl
though the wage total in the latter month was 17.4% under neeenther
* Rev.Sed.
that of September 1927. Index numbers of employment
Current Events and Discussions
greater than at this time last year and set a new record
The Week with the Federal Reserve Banks.
The consolidated statement of condition of the Federal total for the fifth week in succession.
New York-45 Banks.
Reserve banks on Oct. 31, made public by the Federal
' Oct.-31 1928. Oct. 24 1928. Nov. 2 1927.
Reserve Board, and which deals with the results for the 12
7 310,395,000 7,248,689,000 6,810,332.000
total
and
Loans
investments,
,Reserve banks combined, shows increases for the week of
5,373,337,000 5,327,710,000 5,028.412,000
Loans
total
and
discounts,
$38,900,000
$20,300,000 in holdings of bills discounted, of
40,696,000
36,629,000
36,657,000
Secured by U.S. Govt. obligations_
in bills bought in.open market, and of $49,200,000 in member
2,544,743,000 2,504,896,000 2,345,640.000
Secured by stocks and bonds
holdings
2,642,076,000
in
$3,900,000
2,786,185,000
of
and
2,791,937,090
decreases
bank reserve deposits,
All other loans and discounts
of Government securities, of $5,300,000 in cash reserves, and Investments, total
1,937,058,000 1,920,979,000 1,781,920,000
of $600,000 in Federal Reserve note circulation. Total
1,100,574,000 1,107,203,000 892,405,000
U.S.Government securities
Other bonds, stocks and securities_ --- 836,484,000 813,776,000 889,515,000
bills and securities were $55,300,000 above the amount held
on Oct. 24. After noting these facts, the Federal Reserve Reserve with F. R. Bank
758,505,000 700,779,000 737,190,000
57,731.000
52,654,000
53,161,000
Cash In vault
Board proceeds as follows:
The principal changes in holdings of discounted bills for the week were
Increases of $24,500,000 at the Federal Reserve Bank of Chicago, $14,200,000 at New York and $7,700,000 at Philadelphia, and decreases of
87,100.000 at San Francisco, 86.900,000 at Minneapolis and $5,900,000
at Cleveland. The System's holdings of bills bought in open market
Increased 238,900,000, while holdings of Treasury notes declined $4,100.000
and holdings of United States bonds and Treasury certificates remained
practically unchanged.
A decrease of $6,400,000 in Federal Reserve note circulation at six of
the Federal Reserve banks, of which $4.200,000 was reported by the
Federal Reserve Bank of Cleveland, was nearly offset by an aggregate
increase of $5,800.000 at the remaining six Reserve banks.
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 2493 and 2494.
A summary of changes in the principal assets and liabilities
of the Reserve banks during the week and the year ended
Oct. 31 is as follows:
Total reserves
Gold reserves
Total bills and securities
Bills discounted, total
Secured by U. S. Govt. obligations
Other bills discounted
Bills bought in open market
U.S. Government securities, total
Bonds
Treasury notes
Certificates of indebtedness
Federal Reserve notes in circulation
Total deposits
Members' reserve deposits
Government deposits
Increase (4.) or Decrease (-)
During
Year.
Week.
-$5,300,000 -$293,700,000
-290,700,000
-5,100,000
5273,188,000 5,138,311,000 5,285,678,000
1 216,949,000 1,219,241,000 1,034,543.000
65,422,000
43,154,000
40,991,000
Due from banks
Due to banks
103,192,000 102,939,000 112,215,000
1,272,192,000 1,156,536.000 1,327,555,000
Borrowings from F. R. Banks, total_- 160,388,000
156,535,000
27,578,000
114,380,000
46,008,000
87,655,000
68,880,000
14,450,000
13,128,000
Secured by U. S. Govt. obligations
An other
Loans to brokers and dealers (secured by
stocks and bonds):
1 020,710,000 957,397,000 1,082,938,000
For own account
For account of out-of-town banks_ _1,732,177,000 1,736,811,000 1,279,378,000
2 154,277,000 2,078,085,000 1,009,389.000
For account of others
Total
4,296,088,000 4,162,4503000 2,579,173,000
611.075.000 609,843,000 792,532,000
Chicago-43 Banks.
2,083,934,000 2,071,549,000 1,970,076,000
Loans and investments, total
Loans and discounts, total
465,188,000
446,405,000
206,012,000
259.176.000
187,555,000
258,850,000
176,209,000
17,083,000
182,771,000
16,837,000
187,367,000
18,286,000
+105,800,000
Reserve with F. It. Bank
Cash in vault
-299,300,000
-224,100,000
+18,700,000
-93,900,000
-7,300.000
16,160,000
829,781,000
677,730,000
467,093,000
-3,900,000
-100,000
-4,100,000
+200,000
+14,700,000
4 8,600,000
+14,400,000
15,846,000
792,319,000
798,196,000
204,012,000
U.S. Government securities
Other bonds, stocks and securities__ _ 263,081,000
+38,900,000
-600.000
1,616,841,000 1,606,361.000 1,523,671,000
Secured by U. S. Govt. obligations_ _ _ 15,068,000
798,454,000
Secured by stocks and bonds
803,319,000
All other loans and discounts
Investments, total
+44,500.000
+49,200,000
-4,700,000
4 907,164,000 4,772,293,000 3,371,705,000
On demand
On time
+362,700,000
+553,100,000
+353,400,000
+199,700,000
+55,300,000
+20,300.000
+8,7G0,000
+11,600,000 •
Returns of Member Banks for New York and Chicago
Federal Reserve Districts-Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also began to give out the figures of the
member banks in the New York Federal Reserve District,
as well as those in the Chicago Reserve District, on Thursdays, simultaneously with the figures for the Reserve banks
themselves, and for the same week, instead of waiting until
the following Monday, before which time the statistics covering the entire body of reporting member banks-now 632cannot 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
tenth consecutive week show an expansion, this time of
$134,871,000, the grand aggregate of these loans on Oct. 31
being $4,907,164,000. At this figure these loans are over
one and a half billion dollars-to be exact, $1,535,459,000-
Net demand deposits
Time deposits
Government deposits
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. R. Bank. total
Secured by U.S. Govt. obligations_
All other
1,258,857,000 1,276,000,000 1,305,380,000
675,139,000 670,306,000 618,532,000
11,462,000
8,408,000
7,987,000
160,333,000
335,774,000
155,510,000
333,303,000
153,717,000
361,448,000
79,404,000
66,591,000
16,647,000
41,943,000
37,552,000
51,372,000
15,219,000
14,291,000
2,356,000
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
numbering 632, cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with the close of business Oct. 24:
The Federal Reserve Board's condition statement of 632 reporting
member banks in leading cities as of Oct. 24 shows a relatively small
increase in loans and discounts, and decreases of $30,000,000 in investments,
of $87,000,000 in net demand deposits, of $49,000,000 in Government
deposits, and of $32,000,000 in borrowings from the Federal Reserve banks.
Loans on stocks and bonds, including United States Government obligations, were $26,000,000 above the Oct. 17 total at all reporting banks.
an increase of $12,000,000 being reported by member banks in the Chicago
district, of $11,000,000 in the Boston district, and of 810,000,000 in the
New York district. "All other" loans and discounts increased $6,000.000
1
Nov. 3 1928.)
FINANCIAL CHRONICLE
In the Dallas district, and declined $10,000,000 in the Boston district,
$8,000,000 in the New York district, $6,000,000 in the St. Louis district.
and $23,000,000 at all reporting banks.
Holdings of United States Government securities declined $22,000,000
and of other bonds, stocks and securities $9,000.000 below the Oct. 17
total.
Net demand deposits, which at all reporting banks were $87,000,000
less than a week ago, declined in all districts, the principal decreases by
districts being: Cleveland, $20,000,000: San Francisco. $18.000,000:
Chicago, $10,000,000; St. Louis, $9,000,000; Atlanta, $8,000.000; Richmond, $7.000,000, and Philadelphia, $6,000.000. All banks participated
in the reduction of $49,000,000 in Government deposits.
The principal changes in borrowings from Federal Reserve banks for the
week comprise a decline of $52,000,000 at the Federal Reserve Bank of
New York and an increase of $16,000,000 at the Federal Reserve Bank of
Chicago.
A summary of the principal assets and liabilities of 632 reporting member
banks, together with changes during the week and the year ended Oct. 24
1928 follows:
Increase (+) or Decrease (—)
During
Oct. 24 1928.
Week.
Year.
Loans and Investments, total
22,383,130,000 —27.379,000 +1,190,437,000
Loans and discounts, total
15,949,278,000
+3.065,000
+868,254,000
Secured by U.S. Govt. obligations 113,149.000 •+2,700,000
Secured by stocks and bonds
6.663,727,000 •+23,710,000
All other loans and discounts
9,172,402,000 —23.345,000
Investments, total
6,433,862,000 —30,444,000
—7,034.000
+461.546,000
+413,742.000
+322,183,000
U.S.Government securities
3,059,416,000 —21.721,000
Other bonds,stocks and securities_ 3,374,436,000 —8,723,000
+442,139,000
—119,956,000
Reserve with F.R.banks
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
1,696,410,000 —28,096,000
253,528,000 +4.349,000
—32.909,000
—14,014,000
13,203,720,000 —87,308,000
6,918,320,000 —3,060,000
141,523,000 —48,908,000
—226,026,000
+496.723,000
—52,169,000
1,135,913,000 —103,630,000
3,169,929,000 —214,029,000
—60.787,000
—208.194,000
Borrowings from F.R.banks,total—, 688,174,000 —31,838.000
Secured by U.S. Govt. obligations 445,175,000 —21,820,000
All other
242,999,000 —10,018,000
•Oct. 17 figures revised.
+433.722.000
+275,242,000
-1-158.480,000
Summary of Conditions in World's Markers According
to Cablegrams and Other Reports to the Department of Commerce.
The Department of Commerce at Washington releases for
publication Nov. 3 the following summary of market conditions abroad, based on advices by cable and radio:
AUSTRALIA.
The waterfront strike in Australia has been definitely settled,
though
abnormalities
some
continue. While the business trend is more favorable
following the settlement, recovery is slow and is retarded by
coming elections. All wool sales schedules are being resumed. Sales at
Sydney show
an advance of 5% for best qualities and firmness in other selections.
A
good general demand has been enjoyed, with Germany, Japan
and France
actively buying.
AUSTRIA.
Austrian industrial and trade maintained the high levels
of recent months
In October in practically all important lines. A moderate
revival of the
cotton industry is now evident, due to increased domestic buying
and export
orders, principally to Germany. Seasonal lines, including clothing,
footwear, leather goods and numerous specialties, are moving satisfactorily.
The money market is steady with funds ample for current requirements.
There has been a steady increase in the value of both imports
and exports
In recent months.
BRITISH MALAYA.
The approaching removal of rubber export restriction Is viewed with
equanimity in British Malayan business communites. A general feeling
of confidence In the future prosperity of the country prevails.
CANADA.
Mild temperatures have been impeding the movement of seasonal lines
in
several branches of trade but a decided improvement is expected in view
of
the recent advent of colder weather. General groceries are moving
freely.
particularly to outlying lumber and mining camps. Canned
goods are
finding a ready market, and stocks of some lines are already
exhausted.
Shoe production continues to increase. Manufacturers of
women's dresses
are reporting improved conditions. Clothing manufacturers in
are said to be working only for their immediate needs, fearing Ontario
to repeat
their unfortunate experience of last fall when they were caught
with heavy
stocks and were forced to sell at a loss. Hardware trade
continues good.
The demand for furniture and all kinds of household equipment
has exceeded
expectations. There has also been a good sale of paints.
Rail mills are
active and Conditions are generally satisfactory in the metal
trades. Wholesale druggists reported heavy shipments of goods for the Christmas
trade,
particularly of sundries, perfumes, soaps and toilet articles.
CHINA.
While business in the Shanghai area is now generally quiet, the
fact
September customs revenues increased by $345.000 over collections that
of the
corresponding month last year indicates that trading conditions
have considerably improved. The returns further disclose that the
improvement
appears in both imports and exports, with imports showing the greater
gain.
Boycott activities continue unabated, resulting In favorable reaction to
the
shipping and foreign trade of non-boycotted nationals. No
change is
noted in tariff matters. Local estimates of North China's 1928 cotton
crop
are reported by Vice Consul Angus I. Ward at Tientsin to range from a
figure
equivalent to last year's crop, namely,360,000 American bales,to about
onehalf that figure.
Consul E. B. Thomas reports that general business conditions in Mukden
are highly satisfactory, with unprecedently large imports of
cotton piece
goods. This favorable Condition is due to bumper crops and an improved
Political situation, the only unfavorable factor being the Continued
depredated currency situation in North Manchuria.
Consul H. L. Milbourne reports a quiet September trade at Hankow.
with exports slightly higher and imports lighter than for several
months
past. Boycott activities are more severe,and additional taxes are harassing
shipping in the Upper Yangtze
2445
DENMARK.
Danish agricultural production and exports remained at a high level during October and were favored by rising prices. The rapid reconstruction,
on a solid financial basis, of the Danish Private bank during the early part
of October is having a stimulating influence on business. The money
market remained steady during September with a slight increase in deposita
and loans. At the national bank loans and discounts again increased totaling 99,000.000 crowns against 77,000,000 crowns for August. Foreign
exchange holdings also showed gain. The bourse was slightly irregular
during the few days when the Privatbank was closed but soon recovered
firmness. Average quotations showed a slight downward tendency. The
industrial situation Continues fairly bright. Unemployment showed an
increase of 3.000 and was estimated at 38,000 at the close of October. The
increase is due to seasonal causes as the general situation remains markedly
improved as compared with the same month of 1927. Shipping was less
active although there Is yet no idle tonnage laid up.
HAWAII.
Wholesale and retail trade in the United States Territory of Hawaii in
October was satisfactory in volume. Collections were fair to good. Labor
conditions throughout the Islands are satisfactory and no additional labor
of any kind is required from the mainland of the United States or other
outside sources. The sugar harvest is ended and one mill is grinding on the
1929 crop. This season's output is estimated locally to be slightly more than
900,000 short tons, and it is anticipated that the nest crop will probably be
5% larger. The pineapple outlook is also good and it is probable that a
slight increase over the last pack will be released because the virgin land
area planted is larger. A moderate crop of coffee is now being harvested,
and the quality is reported to be average.
HUNGARY.
Hungarian business conditions in October were marked by an evident
slackening of activity, due to the poor corn and fodder crops and a credit
shortage; the outlook is uncertain. The money market is tight with foreign
offers scarce and the stock exchange continues dull. The grain market is
quiet and the mills, which are not buying or selling to any extent, have reduced the flour prices. The iron and steel and machinery industries
reported improved conditions, but a depression prevails in the textile
industry.
INDIA.
Business sentiment in India was somewhat less optimistic during October, due to unfavorable trade features and the crop situation, but industrial developments were more encouraging. A partial resumption of work
in Bombay cotton mills resulted from a truce, pending a more complete
settlement. Cotton mill share values improved somewhat, but the outlook
in this industry is still considered gloomy despite an abundance oflow-priced
raw material. The steel industry is gradually increasing production and
endeavoring to make up for the loss incurred during the strike period. Jute
mills are now in excellent position, with ample low-priced stocks and a
steady demand for manufactured goods at fair rates. An official summary
of the agricultural situation states that rainfall has been generally deficient
except in Burma, Ajmer. and parts of Bombay. Orissa and Central India.
Heavy floods have considerably damaged standing crops in nine districts of
the Punjab. Boll weevil has affected Punjab cotton in two districts. The
outlook for this crop in the Central Provinces is particularly bright. Rice
prospects are favorable except in parts of Madras and the United Provinces.
where transplanting is practically impossible because of insufficient rain.
Generally speaking, current crops are likely to prove below normal. Particularly in the PunJab and the United Provinces.
NETHERLAND EAST INDIES.
General conditions of the past week were favorable. Import commodities moved well and the sugar situation continued to show improvement.
Preliminary reports ofrubber shipments from all the Netherland East Indies
in September show a total of 21,283 long tons, of which 4,956 were from
Java and Madura; 6.536 from the East Coast of Sumatra: and 9,791 from
all other rubber producing sections.
NETHERLANDS.
Imports to the Netherlands from the six leading countries of origin
showed increases during the first nine months of the current year, while
exports were higher with the exception of those to Great Britain and France.
NEW ZEALAND.
Record exports during the past 12 months have placed New Zealand on
a firm and prosperous basis, and the outlook for the current year indicates
further trade expansion. Ample money is now available for bank loans.
It is estimated locally that a total of 15,000 passenger automobiles and
3500 commercial vehicles will be imported during 1929. Sales in October
were the heaviest in many months but stocks are ample to meet the anticipated demand. About 78% of motor cars being sold in the country
are of American make. Owing to the large turnover of new cars, stocks of
used cars are accumulating. American motor cycles are finding it difficult
to compete with British makes and the outlook for them in 1929 is not particularly promising. Lumber sales are brisk, especially for Oregons and
redwoods, and small quantities of hardwoods from the Southern States
are beginning to arrive.
NORWAY.
The Norwegian situation was characterized during October by seasonal
lowering of activity in several branches of industry and commerce. The
money market remains steady and the exchange firm. Stock quotations
were practically unchanged with the exception of industrial shares which
show a rising tendency. Unemployment was estimated at 29 000 at the
close of September, an increase of 4,000 during the month. While the
unemployment situation is still unsatisfactory it shows considerable improvement over the corresponding period of 1927. Shipping remains depressed due to prevailing low freight rates. Shipbuilding, however, in
Norwegian yards is being maintained at moderate pace. The agricultural
situation remains unsatisfactory. Harvest results vary greatly with
the different sections of the country. On the whole, the southern section
benefitted greatly from improved weather during early autumn while on
the west coast and in the northern sections, cold weather brought very
disappointing returns.
PHILIPPINE ISLANDS.
There has been no reaction from the general seasonal improvement in
business and the past week was marked with no feature ofimportance. The
abaca market continued firm with inquiry for January. February, and
March deliveries goods but sales slow. Dealers are demanding approximately 50 centavos (24 cents) per picul more than the following prices,
which are nominal; Grade F, 23 pesos per picul of 139 pounds, I. 22: MEI,
18.50: JUIC, 18.50: and L. 14 (1 peso equals $0.50). Production and receipts of abaca continue heavy. The copra market remains active
and
arrivals at Manila for the week ended Oct. 20 totaled 118,170 bags, making
the total for the first three weeks 378,000 bags. Arrivals at Cebu
are reported decreasing. All oil mills are now operating. Present f.
o. b. prices
2446
FINANCIAL CHRONICLE
[VOL. 127.
for resecado (dried copra) delivered at Manila are 11.20 pesos per Pieta: •
ilondagua, 11.75 pesos: and Cebu, 12.10 Pesos.
SPAIN.
General conditions throughout the kingdom during September were
in
activity. Bank clearings declined, but
otty with some slackening
transactions on the stock market continued active for the season. Money
continued easy during the month. Peseta exchange experienced considerable pressure and declined gradually. The action of the government
committee supervising exchange however, has apparently been successful
in preventing violent fluctuations. In order to aid further the equilibrium
of peseta exchange, the Government has announced its intention of giving
proper mobility to its gold reserves in England and America, and to supplement existing funds by the collection of 25% of customs duties in gold
exchange. The present downward trend of the peseta results from the
heavy importation of wheat and other agricultural products due to crop
shortages this year.
SWITZERLAND.
Conditions in Switzerland are maintaining the favorable progress made
during previous months. The textile industry has shown great improvement in some lines, although there is overproduction of medium grades
of hosiery. Despite serious economic objections, the knit goods industry of
the St. Gall region Is planning for a rather large production of knit outerwear.
Annual reports of other industries show a strong position, good orders and
decreasing unimployment with the exception of those whose activities are
of a purely seasonal nature. Prices show but little change. Capital issues
for the first nine months of this year declined sharply as compared with the
similar period of last year, particularly those for foreign account, the reason
being largely the higher stamp taxes on securities. The stock market is at
Its highest point for the year. Instead of an estimated deficit, the budget
accounts for the current year are expected to show a fair surplus. Budget
plans for 1929 provide for a heavier outlay on new social work which should
be more than offset by heavier income, mainly from the stamp tax on securon
ities. The Federal Railways anticipate a 3% increase in receipts, but
be
:•^.ted heavier expenditures, the net surplus will probably inaccount
Swiss
and
equipment
slight. Few orders will be placed for railway
their
dustries, which have during the past few years devoted much of
are now
activity to the manufacture of material for the Federated Railways,
India
in
seeking foreign orders and are meeting with success, especially
to receive from your hands the letters by which His Majesty,the Emperor of
Japan, commend you to me in that high capacity. I also accept the letters
of recall of your distinguished predecessor, Mr. Tsuneo Matsudaira, who
so ably and agreeably represented your Government among us.
"I am particularly gratified to receive through you His Majesty's assurances of his friendship and regard for the people of the United States on
this first occasion of the nomination of an envoy to this country since His
Majesty's accession to the throne, and I trust that you will be so good as to
convey to His Majesty the earnest hope entertained by the Government
and people of the United States that under his reign so auspiciously begun
your country will continue to enjoy the blessings of peace and prosperity.
I should also like to have you convey to His Majesty my personal best
wishes for his happiness and well being.
In view of your previous service at Washington and of your part in the
Washington Conference for the Limitation of Armament, in which you
demonstrated your desire to promote the cordial relations between the two
countries based on those high principles of right and justice by which both
purpose to be governed, I am corfident that you will do much toward the
advancement of the interests common to both Japan and the United States.
I wish to assure you that in the carrying out of this purpose you may rely
upon my hearty co-operation.
In according you formal recognition in the capacity of Ambassador
Extraordinary and Plenipotentiary, I am happy to welcome you among us
and to express the hope that you will find your sojourn in this country most
agreeable.
and South Africa.
Bank Court,
TURKEY.
,
Economic conditions have failed to show the usual seasonal improvement
season. Ti-is situation is attributed to
export
despite the advance of the
drought. The effect
poor agricultural returns, as a result of the extended
circles, as
of this development have also been keenly felt in commercial
Failures during the
.
indicated by the increasing number of bankruptcies
E'Orient."
first six months in Constantinople. according to the "Economiste
howtotaled 45, as against 32 in 1927,and 20 in 1926. During September,
months.
ever,there was a decline in bankruptcies as compared with previous
the
to
part
in
due
The difficulties among the commercial concerns are also
pound,
conservative credit policy adopted by the banks. The Turkish
has been
which normally appreciates at this period of the export season,
to
firm around $0.518. The new Latinized Turkish alphabet continues
public.
and
be actively introduced in all institutions, both private
Sir Ernest Harvey to Retire from Controllership
of Bank of England Incident to His Election as
Director.
Copyright advices from London Nov. 2 to the "Evening
Post" state:
Sir
Great interest Is taken in the impending retirement next week of
Ernest Harvey from the controllership of the Bank of England because of
his election on the following day to the bank directorate.
Except for Gordon Nairne, Sir Ernest is the first salaried official of the
Bank to become a director in the Bank's 250 years of existence. Sir Ernest
Harvey is exceptionally able and is likely to be an important factor on the
Proposed Bulgarian Stabilization Loan Approved by
Council of League Nations.
The Kingdom of Bulgaria 7M% Stabilization Loan, mentioned in London dispatches, which has been approved by
the Council of the League of Nations, will amount altogether to the equivalent of about $27,000,000 bonds, but
lony about one-hidf will be issued as dollar bonds. Of the
total, about £1,500,000 (about $7,500,000) will be taken in
London and 130,000,000 francs (about $5,000,000) in Paris,
and smaller amounts in Holland and Czechoslovakia. Of
the dollar issue, $4,000,000 bonds have been withdrawn and
will be sold by leading banks in Italy, Belgium and Switzerland, which leaves only $9,000,000 bonds available for the
United States.
The American part will be placed under the leadership of
Speyer & Co. and the J. Henry Schroder Banking Corp.
A preliminary agreement has been signed with the Bulgarian
Finance Minister but as it will probably take about two
weeks to obtain the ratification of the Bulgarian Parliament,
the Loan will not be ready for public subscription until about
the middle of the month.
New Japanese Ambassador to U. S. Received by
President Coolidge.
Ambassador to the United States,
Japanese
new
The
Katsuji Debuchi, presented his credentials to President
Coolidge on Oct. 24. He succeeds Tsuneo Matsudaira, who
is to become Ambassador to Great Britain.
In addressing the President the new Ambassador expressed
his earnest desire to co-operate to the utmost of his ability
relations
"in the maintenance and advancement of the happy
"
which have hitherto subsisted between the two countries.
Mr.
of
view
in
that
stated
Coolidge
In reply President
Debuchi's previous service at Washington and his part in
to Bank of Poland Arranged in 1927
the Washington Conference for the Limitation of Arma- Renewal of Credit
Banks and Central Banks of
Reserve
the
toward
Federal
by
much
do
will
you
ment, I am confident that
Issue.
advancement of the interests common to both Japan and the
In the monthly review issued Nov. 1 by the Federal ReUnited States.
•
Bank of New York we find the following:
serve
Ambassador Debuchi's remarks follow:
pleasure that I
Mr. President: It is with feelings of peculiar honor and
Credit to Bank of Poland.
Sovereign inviting
present to you these letters of credence from my August
y and Plenipotentiary in
you to receive me as his Ambassador Extraordinar
recall it is also my
succession to Mr. Tsueneo Matsudaira, whose letters of
duty to present.
gratification with which
"I am commanded by His Majesty to express the
an envoy to the United States of
on this first occasion of the nomination of
opportunity of conAmerica since his accession to the throne he has the
his warm sentiments
veying to you in the most direct and public manner
the United States and for your- •
of freindship and regard for the people of
at the same time that he
self personally. Ills Majesty charges me to say
this great nation will
entertains the sincerest hopes that the prosperity of
conspicuously done in the
ever continue to increase in the future as it has so
past.
high mission arises from
"My especial pleasure in being selected for this
duties have called me to
the fact that this is the third occasion on which my
privileged to be a member
the United States. For close upon two years I was
Majesty's Embassy in
His
of
of the staff, and latterly the Charge d'Affaires,
this country when
Washington. Again, I had the satisfaction of revisiting
Conference. I may say,
I was directed to participate in the Washington
shores as a stranger,
therefore, Mr. President, that I do not come to your
desire to co-operate to the
and I trust that my assurance of my earnest advancement of the happy
utmost of my ability in the maintenance and
two countries will be
relations which have hitherto subsisted between the
knowledge of American
accepted as assurances which are made not without
conditions and American ideals.
predecessors have done, that in"I would nevertheless invoke, as my
all personages condispensable co-operation and assistance on the part of
of Japan have invariably
nected with your Government which the envoys
to rely."
received, and upon which I shall venture confidently
President Coolidge's reply follows:
you In the character
Mr. Ambassador: It gives me great pleasure to greet
Plenipotentiary to the United States and
of Ambassador Extraordinary and
As reported last October, the Federal Reserve Bank of New York, in
association with all other Federal Reserve Banks, participated in a credit
arrangement granted by various banks of issue to the Bank of Poland in
furtherance of the plans which were completed last year for the stabilization
of the Polish currency on a gold basis. Under the terms of this arrangement
the Federal Reserve Bank of New York agreed, for a period of one year, to
purchase from the Bank of Poland. if desired, up to a total of $5,250,000
of prime commercial bills. Following a request of the Bank of Poland, the
Federal Reserve Bank of New York and all of the other Federal Reserve
Banks have agreed to extend their participation for a period of one year
from Oct. 13 1928. Each of the foreign banks of Issue participating in the
original arrangement has agreed to do likewise.
Arrangements for the credit were announced in these
columns Oct. 22 1927 (page 2213).
Prague Banks Merge.
From the "Wall Street News" of Oct. 26 we take the following:
Bankverein),
General Bohemain Banking Corp.,(Allgemeiner Boehmische
an anliation of the Wiener Bank Verein, Vienn,and Bohemian Union Bank,
kain
Prague (Boehmische Unionbank), one of the leading Czechoslova
interest of
banking institutions, will merge Jan. 1 1929. and the controlling
the
and
Banque
the General Corp., which is held by the Wiener Bank
its full value against
Beige pour 15 Etranger. Bruxelles, will be exchanged to
thereby
Bank
Wiener
The
Bank.
Union
the stock of the Bohemian
institution with assets
acquires substantial interest in the consolidated
directors. The Banque
of $130,000,000 and will appoint X of the board of
in the transaction.
part
Commerciale de Bale. Basel, is likewise taking
Nov. 3 1928.]
FINANCIAL CHRONICLE
Large Increase in Revenues of Poland During Eight
Months This Year Compared with Same Period in
2447
to the enforcement of claims. Hungary has been on a gold
exchange standard basis since January 1, 1927.
1927.
Revenues of Poland for the first eight months of the year Prof. E. W. Kemmerer to Review Reorganization of
Finances of Foreign Governments at Bond Club Lunchtotaled 1,954,855,000 zlotys, representing a surplus of 101,- eon Nov. 9.
388,000 zlotys over expenditures. This is an increase of 21%
in revenues as compared with the same period in 1927, and
Robert E. Christie, Jr., President of the Bond Club of
an increase of 30% in expenditures. Advices from the New York, announced this week that Professor E. W. KemLegation of Poland under date of Oct. 25 add:
merer of Princeton University will be the guest of honor
• The relatively larger increase in expenditures over revenues is due partly and speaker at the next monthly luncheon
of the club to be
to capital and interest payments on the stabilization loan, but chiefly to
productive investments in the country's major enterprises. The growth in held at the Bankers Club on Friday; Nov. 9. Professor
revenues has made it possible for the Government in its budget this year to Kemmerer's subject will be "Advising Foreign Governments
Increase the expenditure for the Department of the Interior to 233 million in the
Work of Financial Reorganization." Professor Kemzlotys as compared with 218 million in the previous year. Expenditures
for the Department of Commerce also amounted to 62 million as against merer for years has acted as financial advisor for governments.
48 million, for public works 146 million as against 136 million, and for In 1925 he was an expert on banking and currency under
the
payments on the national debt 247 million as against 231 million.
Dawes Plan and also Chairman of the American Commission
Administration revenues for the current year are estimated at 1,730
million zlotys as compared with 1,579 million In 1927-28. In addition of Financial Advisors to Chile. At various times during reto this, Government monopolies are expected to yield 895 million zlotys cent years Professor Kemmerer has acted as
Financial Advisor
as compared with 860 million, and Government enterprises 182 million
to Poland, Bolivia, Ecuador, Guatemala and Mexico. He
zlotys as compared with 180 million.
Figures on the country's foreign trade for August show a decline in the was also financial advisor to the Philippines.
unfavorable balance amounting to 28% as compared with the preceding
month and about 35% as compared with the monthly average for the first
six months of the year. Imports for August amounted to 258,774,000 zlotys
as against exports of 195,333,000 zlotys.
Offering of $15,000,000 Federal Land Bank Bonds—
Issue Oversubscribed—Books Closed.
Public offering was made on Nov. 1 of a new issue of
Peru's Fiscal System to Be Revised by Prof. Haig of $15,000,000 10-30-year Federal Land Bank 414% bonds
at a price of 100% and interest. The bonds were offered
Columbia University.
to the public by a country-wide group composed of the
In its issue of Oct. 27 the New York "Journal of Com12 Federal Land banks, investment houses, institutions,
merce" said:
and upwards of 1,000 dealers. The banking group was
It became known here yesterday that a scientific revision of the
fiscal system of Peru under American auspices will be made when headed by Alex. Brown & Sons of Baltimore; Harris, Forbes
it was announced that Prof. Robert Murray Haig of Columbia Uni- & Co.; Brown Brothers & Co.; Lee, Higginson & Co.; the
versity had been appointed head of a special tax commission by National City Co., and the Guaranty
Co. of New York.
the Peruvian Government. Professor Haig and his staff are exThe banking syndicate announced the closing of the books
pected to spend four months in studying the finances of Peru before
at noon Nov. 1, the bonds, it is stated, having all been
handing in a specific plan for a new taxation • system.
The work of Prof. Haig follows closely on the completion of
a placed. The bonds are exempt from Federal, State, municistudy of Peruvian banking and currency problems by Fred I. Kent, pal and local
taxation. They are dated Nov. 1 1928, are
former Vice-President of the Bankers Trust Co., who spent
the due Nov. 1 1958, and are not redeemable
summer in Peru at the invitation of the Government. It is
before Nov. 1
understood that Professor Haig's work will dovetail into that of Mr. Kent. 1938, but are redeemable at par and interest at any time
Peru sold during the past week $25,000,000 of bonds in this coun- after ten years from date of issue.
They are in coupon
try and £2,080,000 in London. The financing in this market was
and registered form, interchangeable, in denominations of
handled by a large syndicate headed by J. & W. Seligman
& Co. and $10,000,
$5,000, $1,000, $500, $100 and $40. Interest is
the National City Co.
It is understood that the present proposed revision of the
tax payable May 1 and Nor. 1 at any Federal Land bank or
system of Peru has been made possible in large part by the
financing Federal Reserve bank. The public offering says:
for that country which has
been carried out by the present syndicate. This same syndicate sold a $50,000,000 issue for Peru
last
year. The proceeids in part went to pay off
outstanding bonds
which had been secured on specific revenues, thus tending
to give
the tax system of the country a distinctly inelastic character.
The appointment of Professor Haig marks another landmark
in
the modernization of the finances of Peru. Another recent
step
in the same direction was the working out of a new agreement
be-.
tween the Government of Peru and the Peruvian Corporation
which
owns a large part of the railroads in the country, received nearly
fifty years ago in settlement for outstanding obligations of the government By this agreement, the Government is relieved of
paying certain annuities, and, it is understood, has arranged to let
the Peruvian Government build certain new lines which will relieve it of the necessity of constructing expensive railroad lines
out of its own resources.
Forthcoming Offering of Dollar Bonds of National Hungarian Industrial Mortgage Institute.
The Guaranty Company of New York is expected to offer
shortly in this market an issue of dollar bonds of the National Hungarian Industrial Mortgage Institute, Limited, which
has rceently been founded by the Royal Hungarian Treasury
and the National Union of Manufacturers for the purpose
of issuing bonds secured by first mortgages of industrial enterprises. In its operations the Institute is similar in many
respects to the Hungarian Land Mortgage Institute, whose
bonds have previously been marketed in the United States.
The Royal Hungarian Government has subscribed to 80%
of the capital stock of the Industrial Mortgage Institute, and
the remaining 20% has been subscribed by the National Union
of Manufacturers of Budapest and its Indusrtial Member
Unions. The Government Minister of Finance, under whose
authority the bonds are to be issued, has agreed to take up
during the life of the bonds so much of any additional share
capital which may be issued in the future as may be necessary
in order that the Government shall own at least 51 per cent.
of the aggregate capital stock.
The Government exercises control over the Institute through
its Minister of Finance, who has appointed a commissioner
whose permanent responsibility is to supervise the Institute's
business. The Institute enjoys special privileges with respect
The Supreme Court of the United States has upheld the constitutionality
of the Act creating the Banks and exempting these Bonds from Federal.
State, municipal and local taxation.
Issuing Banks.—The Twelve Feveral Land Banks were organized by the
United States Government with an original.$9,000,000 capital stock which
has since increased through the operation of the system to over $64,000,000.
Security—Not only are these Bonds the primary obligation of the
individual Federal Land Banks issuing them, but all twelve of the Banks
are liable, under conditions stated in the Farm Loan Act, for the principal
and interest on each Bond, and the Law requires:that the Bonds be secured
by collateral consisting of at least an equal amount of United States Government Bonds,cash, or mortgages on farm lands which must be:
(a) first mortgages, to an amount not exceeding 50% of the value of the
land and 20% of the value of the permanent, insured improvements as
appraised by Land Bank appraisers appointed by the Federal Farm Loan
Board:
(b) limited to $25,000 to any one borrower:
(c) guaranteed by the local National Farm Loan association whose stock,
which carries a double liability, is owned by the borrower-menbers; and
(d) reduced each year by payment of part of the mortgage debt.
Operation.—In about ten years of active operation, the 12 Federal Land
Banks have been built up until as at Sept. 30 1928, their Capital was
64,189,337: Legal Reserve, $11,546.790: Undivided Profits, $4,708,720:
and Total Assets, $1,264,438.317 (statement of condition listed on back
of this circular).•
Acceptable By Treasury.—These Bonds are acceptable by the United
States Treasury as security for Government deposits, including Postal
Savings Funds.
Legal For Trust Funds.—The Federal Farm Loan Act provides that the
Bonds shall be lawful Investments for all fiduciary and trust funds under
the Jurisdiction of the United States Government. They are eligible under
the laws of many of the States for investment of all public and private
tunds and have been held eligible for investment by savings banks in:
Alabama
Idaho
Michigan
Oklahoma
Texas
Arkansas
Mississippi
Indiana
Utah
Oregon
California
Kentucky
Missouri
Pennsylvania Vermont
Colorado
Nebraska
Louisiana
Rhode Island Virginia
Delaware
New Hamp.
Maine
So. Carolina
Washington
New Jersey
Dist. of Col. Maryland
So. Dakota
W. Virginia
Massachusetts North Carolina Tennessee
Florida
Wisconsin
Ohio
Georgia
Wyoming
The holdings of the United States Government in the cayital stock of the
Federal Land Banks have been reeuced from approximately $9,000,000,
at the time of the inauguration of the system, to about $4439,000, as at
September 30,1928. The Farm Loan Association now own about 363.000.000 capital stock, part of the proceeds of which was used to retire stock
owned by the Government as required by the Farm Loan Act. The
United States Treasury Department has purchased and now holds for the
United States Government Life Insurance Fund over $100.000.000 Federal
While these Bonds are not Government obligations,
Land Bank Bonds.
and are not guararteed by the Government,they are the secured obligations
Federal charter with Governmental supervision,
under
of Banks operating
on each of whose boards of direction the public interest is represented by
three directors appointed by the Federal Farm Loan Board.
FINANCIAL CHRONICLE
2448
[VoL. 127.
The following is the consolidated statement of condition August 1, 1948. The corporation, founded in 1861, is said
of the 12 Federal Land banks Sept. 30 1928, compiled from to be the largest producer in Germany of steel beams and
channels and an important manufacturer of other structheir reports to the Federal Farm Loan Board:
tural steel products, being the only large steel manufacASSETS.
$1,277,359,019.30
Gross mortgage loans
turer in Germany reported to be entirely independent of
87,210,772.37
Less payments on principal
foreign sources of supply of iron ore. Of the issue, a sub$1.190,148,246.93
Net mortgage loans
stantial amount has been reserved for public offering in
803,510.13
Less principal of delinquent installments
$1,189,344,736.80
and the Netherlands.
Sweden
Delinquent amortization installments:
$655,374.21
Less than 30 days
will be secured by mortgages on the operating
bonds
The
396,642.59
30 to 60 days
424,869.32
properties of the corporation and its constituent companies,
60 to 90 days
2,118,149.06
90 days and over
subject only to charges securing industrial debentures
$3,595,035.18
Total
under the Dawes Plan, of which the present aggreissues
293,028.88
payments
partial
Less
2,098,212.58
Lew reserves for delinquent Installments
gate face amount does not exceed $4,015,238. Consolidated
1,203,793.72
United States Government securities:
net earnings before depreciation and interest amounted to
16,240,250.00
Owned (par value)
$4,291,667 in 1927 and, after depreciation as charged, to
500,000.00
Less sold under repurchase agreement
$3,114,373, compared with annual interest requirements on
$15,740,250.00
Total
8,810,000.00
Held under resale agreement
this issue of bonds and the present annual fixed charges
$23,550,250.00
Total
on the industrial debentures aggregating $757,000.
58,883.38
Premium or discount
The pro forma consolidated balance sheet of Ilseder Steel
23,609,133 38
600.00
Bonds of other Federal Land Banks
969,957.42 Corp. and its two constituent companies as of December 31,
Other securities
146,525 00 last, adjusted to give effect to this financing, shows current
Cash deposits for matured or called bonds
5,178.695.99
Cash on hand and in banks
Accounts receivable:
assets of almost three times current liabilities and net
81,402.635.80
Tax advances
current assets in excess of $5,700,000. The physical prop749,290 06
Other
2,151,925.86
erties, carried on the balance sheet at $23,099,384, are
Notes receivable, ez.c.:
$217,015.75
Notes
valued conservatively to-day, it is stated, at not less than
3,559,044.13
Purchase money first mortgages
697,005.30
Purchase money second mortgages
$60,000,000, iron ore deposits alone being estimated to have
2,421,117.57
Real estate sales contracts
a value greater than the face palue of this issue. At cur$6,894,182.75
Total
rent quotations the common stock has an aggregate indiLess reserves for purchase money mortgages
465,812.36
and (or)contracts)
market value it is pointed out of $21,300,000. Procated
6,428,370.39
ceeds of the financing will be used to retire the corporation's
Interest accrued:
$21,677,749.37
Mortgage loans
outstanding 20-year 7 per cent bonds, to reimburse the com284,101.12
United States Government securities
11.14
Bonds of other Federal Land banks
pany for expenditures for additions and improvements, and
12,878.17
Other
21,974,739.80 to provide for further additions and improvements. A
$16,029,033.77
Real estate
13,096,873.13
sinking fund sufficient to retire the entire issue by maturity
Less reserves for real estate
2,932,160.64
6,741,415.19 is provided. Further details of the offering are given in
Sheriffs' certificates, Judgments, Szc., (subject to redemption)_ _
$2,799,850.18
Spokane participation certificates
our "Investment News Department" on a subsequent page.
Less reserves for Spokane participation cer2,799,850.18
tificates
2,594,524.86
225,949.20
16,843.75
481,418.38
437,526.77
Banking houses
Furniture,fixtures and equipment
Automobiles
Prepaid and deferred expenses
Other assets
$1,264,438,317.15
Total assets
LIABILITIES.
Farm Loan bonds:
Authorized
Less held by banks of issue
Total
Sold outright
Sold on repurchase agreement
Matured or called for redemption
Notes payable, Sze
Mortgagesassumed
Dividends declared but unpaid
Matured coupons on farm loan bonds
Due borrowers
Accounts payable
Interest accrued:
Farm loan bonds
Notes payable. ace
Mortgages assumed on real estate owned
Other
Advance payments
Other liabilities
Deferred income
Capital stock:
U. S. Government
Individual subscribers
National farm loan associations
Borrowers through agents
Legal reserves
Other reserves
Undivided profits
Total liabilities
$1,163,272,225.00
1,877,580.00
$1,161,394,645.00
$1,161,055,120.00
193,000.00
146,525.00
$1,161,394,645.00
3,500.00
1,174,117.14
789,910.01
743,141.12
462,558.71
$17,247,503.32
17,247.503.32
1,146,309.19
412,039.57
452,620.79
$439,225.00
115.00
62,991,692.50
758,305.00
64.189,337.50
11,546,789 62
167,115 00
4,708.720.18
Bonds of City of Frankfort-on-Main Ready in Definitive
Form.
The Central Union Trust Company of New York as
authenticating agent and registrar announces that definitive bonds for City of Frankfort-on-Main 25 year sinking
fund 61/2% gold bonds, Municipal External Loan of 1928,
will be ready for delivery against the surrender of outstanding Interim receipts, at its office 80 Broadway, New
York, on and after Nov. 15 next.
Austrian Government Bonds Dated May 19231[Drawn
for Redemption.
J. P. Morgan & Co., for the trustees, have issued a notice
to holders of Austrian Government guaranteed loan 19231943, 7c sinking fund gold bonds, issued under general bond
of the Federal Republic of Austria, dated May 31, 1923, to
the effect that $811,500 principal amount of the bonds have
been drawn for redemption at par on December 1, 1928, out
of moneys in the sinking fund. Payment on the drawn
bonds will be made at the office of J. P. Morgan & Co.,
23 Wall St., N. Y., on and after December 1, after which
date interest on the drawn bonds will cease.
$1,264,438,317.15
Offering of $19,900,000 532% Bonds of Oriental Develment Co., Ltd., Oversubscribed.
Brazilians Plan Loan—State of Rio Grande do Sul Likely
The National City Co. offered Oct. 30 an issue of $19,900,to Seek $46,000,000. in U. S.
A special cablegram from Rio De Janeiro, Oct. 22 to the 000 the Oriental Development Co., Ltd., external loan 302% gold debenture bonds, due Nov. 1 1958 at 90
New York "Times" stated the "Noite" publishes the follow- year 51/
and interest. The issue was oversubscribed the day of ofing dispatch from Porto Alegre:
"The Governor of the State of Rio Grande do Sul, Getulio Vargas, fering. The bonds are unconditionaly guaranteed by the
to
has sent a message to the State's Congress asking authorization
Imperial Japanese Government as to principal and interest
guarantee the following credit operations by the Banco do Rio
by endorsement on each bond. The bonds will be direct
mortgage
extend
to
($24,000,000),
eontos
Grande do Sul: 200,000
loans; 100,000 cantos ($12,000,000), for short-term farm loans and credit obligations of the Oriental Development Co., Ltd.
$10,000,000 for loans to the State's counties.
The loan contract provides that Oriental Development De"The Banco do Rio Grande do Sul is a State bank recently organbentures, of which the bonds of this loan are a part, are,
ized with funds borrowed in New York, and the guarantees requested
are on account of further loans through the selling of State-guaran- and, so long as any of the bonds of this loan remain outteed bonds, probably in New York, where the State is accustomed standing and unpaid, will continue to be, equally and ratably
to borrow.
secured by a charge upon all.the assets of the company,
Offering of $10,000,000 Bonds of Ilseder Steel Corp. and that the owners of the debentures (including these
bonds) shall have a right to claim settlement out of the
of Germany.
The National City Co. offered Oct. 31 at 92 and interest assets in preference to all other creditors of the company.
to yield about 6.74% a new issue of $10,000,000 Ilseder Further details of the offering are given in our "InvestSteel Corp. 6% gold mortgage bonds, series of 1928, due ment News Department" on a subsequent page.
Nov. 3 1928.]
FINANCIAL CHRONICLE
Offering of $2,500,000 Bonds of Ercole MareIli Electric
Manufacturing Co. of Italy.
Field, Glore & Co. and Kelley, Converse & Co. are offering
at 97 and interest a new issue of $2,500,000 Ercole MareIli
Electric Manufacturing Co. 25 year first mortgage sinking
1 2% gold bonds, Series A, due Nov. 1, 1953. The
fund 6/
company whose plants are located near Milan is reported to be
one of the leading manufacturers of electrical equipment in
Italy, its products occupying a favorable position both in the
domestic and foreign markets.
Each bond will carry a detachable stock purchase warrant
entitling the holder to purchase, for each $1,000 principal
amount of bonds, 40 shares of fully paid and non-assessable
capital stock of the company of the par value of 100 lire each.
The price at which these rights may be exercised ranges from
$8 a share during the two years ended May 31, 1931, at $10
after May 31, 1933, but on or before May 31, 1934, the date
when the warrants expire.
The properties of the Ercole Marelli company on which
these bonds are secured by a direct first mortgage have an
appraised reproduction cost new, less accrued depreciation, of
$4,079,275, as of Oct. 15, 1927. For the four years ended
Dec. 31, 1927, annual net profits available for interest and
profits taxes averaged it is stated, more than 5//
4 times interest
requirements on these bonds, while during the first eight
months of 1928 they were at an annual rate of more than
1 2 times such requirements. Proceeds from the sale of these
5/
bonds will be used to retire all floating debt and for other
corporate purposes. Further information regarding this offering is given in our "Investment News Department" on a
subsequent page.
2449'
ant is obtained. The Department will agree to deposit monthly, out of
the pledged revenues as collected, with a local bank in Colombia, approved by the Fiscal Agent, one-twelfth of the annual service charges
of the issue and to maintain with the Fiscal Agent as a reserve fund
for the bonds of every series a sum equal to one-half of the semiannual interest and sinking fund instalment in respect to the bonds
of such series.
As to the security it is stated:
These bonds, in the opinion of counsel, will be the direct obligation
of the Department of Santander and will be secured as to principal,
interest and sinking fund by a first lien on the Department's net
revenues derived from the taxes on distilled liquors and tobacco. Such
combined net revenues during the past five fiscal years have averaged
$562,929 per annum, equivalent to practically three times the annual
interest and sinking fund charges of these bonds. During the fiscal
year ended June 30, 1928, such combined net revenues amounted to
$762,260, or over four times such total charges.
Bonds of City of Sao Paulo (Brazil) Drawn for
Redemption.
The First National Corporation of Boston, as paying
agent of 61A% external secured sinking fund gold bonds
due May 15, 1957, of the City of Sao Paulo, Brazil, announces that $35,500 of bonds of that issue have been
drawn for the sinking fund and will be paid at their principal amount on and after November 15, 1928, upon presentation at its office at 100 Broadway, New York.
Argentine Government Bonds, IssuelroffJuneT1T1925
Drawn for Redemption.
J. P. Morgan & Co. and The National City Bank of New
York, as fiscal agents, have issued a notice to holders of
Government of the Argentine Nation external sinking fund
6% gold bonds, issue of June 1, 1925, due June 1, 1959, to the
effect that $253,500 principal amount of the bonds have
been drawn by lot for retirement at par and accrued interest on December 1, 1928, out of moneys in the sinking
fund. Payment on the drawn bonds will be made upon
presentation and surrender at either the office of J. P.
Morgan & Co., 23 Wall Street, N. Y., or the head office of
The National City Bank of New York, 55 Wall Street, on
December 1, after which date interest on the drawn bonds
will cease.
Offering of $2,000,000 7% Bonds of Department of Santander (Republic of Colombia)-Issue Placed-Books
Closed.
The initial American loan of the Department of Santander,
Colombia, an issue of $2,000,000 external twenty-yea
r 7%
sinking fund gold bonds, Series A, was marketed on November 1 by Redmond & Co. and E. H. Rollins & Sons. The
issue, it is stated, constitutes the only external or internal
J. P. Morgan & Co. Seek Tenders for Argentine Governdebt, either funded or floating, of the Department.
The
ment Bonds Issue of May 1 1926 and May 1 1927.
bonds were offered at 94 and accrued interest, to yield
about
7.58%. The closing of the books was announced on the
P. Morgan & Co. and The National City Bank of New
J.
day
of the offering. The purpose of the issue is indicated
York, as fiscal agents, have issued a notice to holders of
as
follows:
Argentine Government Loan 1927, external sinking fund 6%
The proceeds of the present issue will be used
in the construction of gold bonds, public works issue of May 1, 1927, due May 1,
highways thrughout the Department. A definite
program for these high- 1961, to the effect that $112,364 in cash
ways has been worked out and has been approved
is available for the
by the Departmental
Legislature. The establishment of additional
transportation facilities purchase for the sinking fund of so many of the bonds as
in Santander, as in all other parts of Colombia, will
greatly
the further development and prosperity of the Department. expedite
The bonds will be dated Oct. 1, 1928 and will mature Oct.
1,
1948. They will be interchangeable bonds of $1,000
and
$500 denominations, registerable as to principal only. A semiannual cumulative sinking fund is calculated to retire all bonds
by maturity by purchase up to 100 and interest or redemption
by lot at that price. Application will be made to list
the
bonds on the New York Stock Exchange. With regard
to the
provisions of the issue Dr. Narciso Torres
Melendez, Governor of the Department, says:
Interest on these bonds is to be payable April 1
and October 1.
Principal and interest payable in United States
gold coin
ent standard of weight and fineness at the principal of the presoffice of the
National Bank of Commerce in New York, Fiscal
Agent, free of all taxes,
present or future, of the Department of Santander
and
of
of Colombia. The bonds will be interchangeable and in the Republic
denominations
of $1,000 and $500, registerable as to principal only. The
to be redeemable, upon at least 60 days' notice, as a whole bonds are
or (othzr
wise than through the sinking fund) in part from time to
time on ly
semi-annual interest date at 1021A if redeemed on
or before October
1, 1938; at 101% if redeemed thereafter and on or before
October 1,
1943; and at 100 if redeemed thereafter and prior to
maturity; in all
cases together with accrued interest. The total authorized issue
amounts
to $9,733,000, of which bonds in the aggregate principal
amount of
$2,000,000 are to be issued at the present time.
The remaining authorized bonds, which may be issued
in one or
more other series, will be secured equally with the bonds
of
"A", and shall contain the same terms and conditions, but maySeries
vary
as to date, name and date of maturity, and otherwise as provided
the Fiscal Agency Agreement. The Department will provide in in
the
Fiscal Agency Agreement that it will not issue any of such
remaining
authorized bonds, unless the pledged revenues (including any
additional
revenues then pledged) during each of the two fiscal years
immediately
preceding such issuance shall have amounted to at least twice the
annual
service charges on all the bonds then outstanding and on all such addition.
al bonds then to be issued. The Department will covenant,
subject
the approval of the Department Legislature, that in case it pledges to
any
of its revenues for the service of any future loan, such lien
will be
subordinated to that of all bonds of the present loan up to the
authorized
total of $9,733,000; and the Department will agree to issue no
additional bonds of this loan, other than the bonds of Series "A" in
the
amount of $2,000,000, unless and until legislative approval of this
coven-
shall be tendered and accepted for purchase at prices below
par. Tenders of such bonds, with coupons due on and after
May 1, 1929, should be made at a flat price, below par, at
the office of J. P. Morgan & Co., 23 Wall Street, or the
head office of The National City Bank of New York, 55
Wall Street, prior to 3 P. M. December 3, 1928. If tenders
so accepted are not sufficient to exhaust the available
moneys aforesaid, additional purchases upon tender, below
par, may be made up to January 30, 1929.
J. P. Morgan & Co. and The National City Bank of New
York, as fiscal agents, have also issued a notice to holders
of Government of the Argentine Nation external sinking
fund 6% gold bonds, issue of May 1, 1926, due May 1, 1960,
to the effect that $112,570 in cash is available for the purchase for the sinking fund of such bonds as shall be tendered and accepted for purchase at prices below par.
Tenders of such bonds, with coupons due on and after May
1. 1929, should be made at a flat price, below par, at the
office of J. P. Morgan & Co., 23 Wall Street, or the head
office of The National City Bank of New York, 55 Wall
Street, prior to 3 P. M., December 3, 1928. If the tenders
so accepted are not sufficient to exhaust the available
moneys aforesaid, additional purchases upon tender, below
par, may be made up to January 30, 1929.
Chain Stores Win An Important Suit.
Legislation taxing chain stores doing business in North
Carolina and thus affecting some of the largest chains in the
country has been declared unconstitutional by the Supreme
Court of that State. Through this important decision, which
is the second of its kind rendered during the year, the Great
Atlantic & Pacific Tea Company, the F. W. Woolworth Company, the David Pender Grocery Company, J. C. Penney Company, G. R. Kinney Co. Inc., and other chains which
have
2450
vol..
FINANCIAL CHRONICLE
been forced to pay $50 per store for the privilege of operating in the state will recover the taxes already paid to the
Commissioner of Revenue.
The law which has been declared to be in conflict with both
State and Federal Constitutions, taxed operators of six or
more stores and exempted those operating less than six. The
,Court held that this classification for taxation was founded
on no real and substantial difference between the two classes;
that it was arbitrary and unjust, and that it deprived merchants of equal protection under the laws of the state.
• Following as it does upon a similar decision in favor of
the.chain stores handed down by Judge Daub, of the Circuit
Court of Allegany County, Maryland, last April, this latest
decision may well affect the future of anti-chain store legislation, in the opinion of chain store executives. Godfrey M.
Lebhar, Secretary and General Manager pro tern of the National Chain Store Association, declares that this decision
shows the futility of measures of this kind and is expected
to discourage similar bills that might otherwise have been offered in other States.
High Level of Money Rates Weak Spot in Financial
Situation According to Guaranty Trust Co.
A new wave of speculative fervor has swept over the
127.
The chief points of interest in the banking situation in September have
been the rates of interest and loans to brokers. Call money averaged 7.3%
in September or 0.4 of 1% higher than the average for August, and 4 to 6
months collateral time loans averaged about 0.6 of 1% higher in September
than in August
•
• •
The prices of 238 industrial and railroad stocks average 0.7 of 1%
higher in September than in August. Some of the groups of industrials
showed large gains, the automobile stocks rising 18.6 points, the auto
accessory stocks gaining 17.7 points, and the drugs, medicine, and cosmetics stocks showing an increase of 21.6 points. The radio stocks lost
15.7 points, the leather stocks were 22.5 points lower. The remaining
groups showed relatively small gains or small losses. When call rates
went down the second week of October, there was a renewal of the upward trend in stock prices. Stocks are now selling on a very low interest
basis both with respect to earnings and with respect to dividends. In
both of these respects they are higher than at any time since the war.
In the case of a number of stocks, the Bureau has divided price by the
latest annual earnings per share and also by the last annual dividend figures. The average price of Allied Chemical in September was 33 times
the annual dividend rate and 19.5 times the earnings per share in 1927.
Montgomery Ward average price in September was 49 times its annual
dividend rate and 24 times its earnings per share in 1927. United States
Steel sold at 22.6 times its annual dividend rate and 19.5 times its earnings per share in four last quarters for which earnings are available.
These are illustrations tending to show that stocks are high. While
some urge that they are selling on a purely speculative basis, this is
hardly a tenable position. In each case where prices are relatively high,
there are special prospects for increased earnings, such as the case of
Montgomery Ward. The technical position of the market, however, continues bad. Interest rates will probably continue high during October
and November and it seems reasonable to expect some reaction in the
stock market. The smaller volume of securities being marketed In the
second half of 1928 indicates a possibility of some slowing up in the industrial situation toward the end of the year. Buying for the rise has
become a hazardous venture. There has already appeared in the market
some slowing down of the bull movement, the market assuming more
nearly a lateral trend.
stock market this month, bringing with it new records in the
.• voluble of transactions and in the prices of many leading
security issues, states the current issue of "The Guaranty
• Survey," published Oct. 29 by the Guaranty Trust Company
of New York. "In so far as the movements of such a market as exists at present can be ascribed to influences out• side of the market itself, the occasion for this outburst is Fifteen Leading New York Banks Show Increased
probably to be found in the encouraging aspect of the agriEarnings.
cultural situation and the maintenance of a high level of
Earnings of fifteen leading New York banks and trust
. general business activity in the face of tight money and the companies for the quarter ended Sept. 30 1928 are over
Impending elections," the "Survey" continues. It adds:
24% greater than for the corersponding quarter last year,
"Certainly no change in money conditions can be offered as an explanaaccording to Gilbert Eliott & Co., bank stock specialists.
tion of the renewed advance in prices of shares, unless the gradual increase
In the Reserve banks' holdings of acceptances be regarded in this light. Earnings of the fifteen banks for the quarter totaled $29,This increase, however, has resulted in no perceptible easing of money 478,700 compared with $23,750,100 for the same period in
rates. It is generally attributed to the desire of the Reserve banks to
finance the autumn trade expansion and crop movement without an exces- 1927, an increase of $5,728,600.
National City Bank shows the largest earnings for the
sive stringency in the market for commercial loans, a development that
was regarded as quite possible a few weeks ago."
quarter of any bank with a total of $5,034,600, while Chase
• "The high level of money rates remains the central fact National Bank leads all banks in point of dollar gain with
in the financial situation, and almost the only weak spot an increase of $1,220,000 over the third quarter of last
in the business outlook," the survey observes. Continuing, year. In point of percentage increase over a year ago,
it says:
Empire Trust Company and Chemical National Bank lead
"While there has been no change in the general credit situation of suffi- all others with gains of approximately 70% and 52% reof comparatively
cient importance to alter the prospect for a continuance
tight money during the remainder of the year, the marked change in the
gold movement is a factor that will tend to check any further advance in
rates. Shipments of gold to and from the United States have been practically at a standstill for some weeks, the October totals for exports
and imports both being under $5,000,000. More than half of the gold
imported last month came from England, and the remainder chiefly from
Canada and Mexico.
"The shipments of gold from London to New York, with a likelihood
of further receipts of the metal in the near future, raise again the interesting and puzzling question as to how far the return movement is likely
to go and what its relation is to the more important, and presumably
more permanent 'redistribution' of America's gold stock that has been
under way for the past year. The comparative levels of interest rates
here and abroad provide no basis for an answer, since the Federal Reserve
ratio is still far above the legal minimum, and the Reserve banks could,
by reaccumulating Government securities and acceptances in sufficient
amounts, reduce their rediscounts by an approximately equal amount and
thus produce a marked easing of open-market rates. In the absence of
any such reversal of policy, which must be regarded as a very remote
possibility as long as the speculative situation remains as it is now, gold
may be expected to return to this country until money rates here and
abroad are more nearly in line.
Gold Imports Probably Temporary.
"In the long run it will be found, no doubt, that economic forces will
compel a further exportation of gold from the United States, particularly
If the flotation of foreign security issues in American markets is resumed
on a large scale. But, for the time being, the natural trend is obscured
by the policy adopted by American banking authorities in attempting to
check the flow of bank credit Into the security markets.
"In addition to the political situation and the high level of money
rates, a factor that might have been expected to produce some hesitancy
In the security markets was the feeling of genuine concern expressed
at the annual convention of the American Bankers Association over the
credit situation resulting from conditions in the stock market. But the
speculating public, which is in a mood to construe every development in
Its most favorable light, apparently interpreted the mildness of the
bankers' warnings as a favorable sign; and prices continued their ascent."
Spurgeon Bell of Bureau of Business Research, Ohio
State University, Finds Technical Position of Market Bad—Buying for Rise a Hazardous Venture.
Discussing the business and industrial outlook in the October bullet issued by the Bureau of Business Research of
the Ohio State University, Spurgeon Bell, Director of the
Bureau, says in part:
spectively.
Higher money rates combined with generally increased
business activity have been factors contributing to the improved earnings, the bankers point out. It is interesting to
note that out of fifteen of the leading banks, thirteen showed
an increase in earnings for the third quarter. Comparative
quarterly earnings of the various banks, as of Sept. 30
follow:
American Exchange Irving Trust
Bankers Trust Co
Bank of New York St Trust Co
Chase National Bank
Chemical National Bank
National City Bank
Corn Exchange Bank
Empire Trust Co
Equitable Trust Co
First National Bank
Guaranty Trust Co
National Bank of Commerce
National Park Bank
New York Trust Co
Central Union Trust
Total
Third Quarter
1928.
82,100,200
2,417,300
602,400
4,134,600
624,600
5,034,600
746,600
343,400
1,525,400
3,804,900
2,847,700
2,258,000
840,400
1,170,600
1,028,100
Third Quarter
1927.
*1,609,100
2,610,200
421,000
2,914,600
408,500
4,140,400
731,300
201,200
1,711,400
2,677,900
2,017,900
1,572,700
778,300
1,009,600
946,100
829,478,700
823,750,100
George E. Roberts of National City Bank Sees Possibility
of Prosperity Endangered If Stock Market Absorbs
Undue Credit.
Business prosperity prevails in this country but it may be
endangered if stock market speculation absorbs more than its
share of credit resources, George E. Roberts, Vice-President of
the National City Bank, New York, told members of the
Robert Morris Associates at their convention at Cleveland on
Oct. 31. So far, industry has not been disturbed by the wave
of speculative activity, the banker said. Pointing out that
security prices have experienced great advances, Mr. Roberts
declared that diversion of so large a share of the country's
savings into speculation as to curtail the supply of capital
for new enterprises and new construction business generally
would be affected and the stock market itself would suffer.
"Speculation has a useful part to play in the business world"
Nov. 3 1928.]
2451
FINANCIAL CHRONICLE
said Roberts in his address on "Speculation and its Effect (1) Net borrowings on collateral from New YorkDemand Loans. Time Loans.
banks or trust companies
upon Business." "Intelligently directed, it exerts a stabilizing,
$4359826540 $634,111,893
(2) Net borrowings on collateral from private bankers,
balancing influence, correcting irregularities which develop
brokers, foreign bank agencies or others in the
City of New York
129,881,635
755.900,994
in the course of trade. Evils of speculation develop when it
55,115,727,534 5763,993,528
where
real
standards
of
value
are
lost
sight
reaches a stage
Combined total of time and demand loans
35,879,721.062
of and the only criterion of values is what the speculators
The scope of the above compilation is exactly the same as in the report
themselves are paying for property which they intend immed- issued by the Exchange a month ago.
iately to put back upon the market."
The compilations of the Stock Exchange since the issuDiscussing the credit situation and the stock market, Mr. ance of the monthly figures by it, beginning in January 1926,
Roberts said:
follow:
1926—
"An undue absorption of credit in the stock market may offset the
general business situation unfavorably, and unfavorable developments ;n Jan. 30
Feb. 27
the business situation are quite certain to depress the stock market.
Mar. 31
"Our entire banking and currency system is ultimately based upon April 30
gold. The Federal Reserve system was established some years ago for May 28
30
• the express purpose of maintaining the currency at par with gold and June
July 31
of supporting the member banks in financing the current requirements Aug. 31
of industry and trade. The reserve act undertakes to establish a fund Sept.30
Oct. 31
of credit which will not require involved or speculative operations.
Nov. 30
"It expressly states that reserve credit shall not be used for the pur- Dec. 31
pose of 'carrying or trading in stocks, bonds or other investment securi
1927—
ties, excepting government securities.' The reason for this provision Jan. 31
28
is evident. Borrowing upon stocks and bonds for the purpose of trad- Feb.
Mar. 31
ing in them or carrying them is legitimate, of course, but the amount Apra 30
of stocks and bonds now outstanding is so large that without some May 31
restriction upon borrowing for that purpose a dangerous state of inflation June 30
July 30
might occur.
Aug. 31
"It was not intended to place upon the Reserve authorities the ;e- Sept.30
sponsibility of regulating speculation of any kind. They were charged Oct. 31
Nov. 30
simply with keeping the Reserve Banks clear of it. This policy is for Dec.
31
the protection of entire business situation.
1928—
"Activities of the Stock Exchange over recent years has signified Jan. 31
speculation on a great scale. This speculation has absorbed a supply Feb. 29
of surplus credit. The question of interest now relates to the possible Mar. 31
30
effect of continuing demands for credit from the Stock Exchange now April
May 31
that no surplus supply exists. It is one thing to have speculation ab- June 30
sorbing surplus credit and another to have it competing with industry July 31
over a limited supply of credit. Business generally would suffer if Aug. 31
Sept. 30
security speculation used up so much credit as to hamper construction Oct. 31
activities, and industrial employment."
W. C. Durant Predicts Increase in Stock Trading .
to
10,000,000 Shares Daily—Higher Prices Also Forecast.
W. C. Durant, President of the Durant Motors Inc. Company, returning from abroad on the steamer Berengaria on
Oct. 26, not only declared that stock prices will go to higher
levels, but that the daily transactions will before many months
reach 8,000,000 or 10,000,000 shares. His views as published
in the "Wall Street News" of Oct. 27 follow:
"For the past year from the constitutional pessimist, from the professional bear and from the vast group who did not realize that conditions have greatly changed, we have heard the constant cry that prices
of stocks are too high. I most emphatically disagree. It is not that
prices of good stocks are now too high, but rather that a year ago prices
were much too low.
"Good American stocks measured by prices of the best foreign securities and income return are cheap and are going higher. The New York
Stock Eaachange is today the greatest security market in the world.
The enormous business of the Exchange is conducted with very little
friction, and the character of the service is constantly being improved.
While the business today is large, with the many issues which are being
split up (with more to follow), the Exchange will before many months
be called upon in busy times to handle from 8,000,000 to 10,000,000
shares per day. And for the benefit of our timid friends who follow
the loan situation very closely it might be well to add that brokers'
loans (secured by the finest collateral in the world, selected and priced
by the banks) will of necessity be correspondingly increased.
"Europe is not impoverished. Europe is prosperous. Europe has no
thought or desire to repudiate any of her war obligations. Enormous
private fortunes accumulated for centuries are intact. And because of
high regard for American business leadership and American business
standards and because we offer a greater return upon ingested capital,
a good portion of that great wealth is being invested in our securities.
In other words our market is no longer controlled by a few wealthy
Americans, but is a carefully studied worldwide market.
"Politics at the moment unquestionably influences the situation.
Europe relies on the good sense of the American people to elect a chief
executive of splendid character, high ideals and large business experience. Hoover is known to be an able statesman and is respected.
Hoover, a forceful and progressive executive, will complete the big things
initiated by Coolidge and will prove equal to the responsibilities inherited
by every President of the United States."
Brokers' Loans on New York Stock Exchange Reach
Record Figures.
Brokers loans on the New York Stock Exchange reached
a record Volume on Oct.31, the total on that date at $5,879,721,062, representing an increase of $366,081,377 since
September 30, with the amount was $5,513,639,685, the
high peak previous to the latest figures. The Oct. 31 total
is made up of demand loans of $5,115,727,534 and time
loans of $763,993,528. The figures were made public
yesterday (Nov. 2) in the following statement issued by the
Stock Exchange.
Total net loans by New York Stock Exchange members On collateral,
Contracted for and Carried in New York as of the close of business October
811928, aggregated $5,879,721.062.
The detailed tabulation follows:
Demand Loans.
52,516.960.599
2.494,846.264
2.033.483.700
1,969.869.852
1.987.316.403
2,225.453.833
2,282,976,720
2.363,861.382
2,419,206,724
2.289,430,450
2,329.536.550
2,541.682.885
7'ime Loans
5966.213.555
1,040.744,057
966.612.407
865,848.657
780,084.111
700,844.512
714.782,807
778,286,686
799.730.286
821.746.475
799,625,125
751.178,370
Toted Loans.
53,513.174.154
3.535.590.321
3.000,096.167
2.835,718.509
2.767.400.514
2.926.298.345
2.996.759,527
3.142.148,068
3,218,937.010
3.111.176.925
3,129,161.675
3,292,860.255
2.328.340,338
2,475.498.129
2,504.687.674
2,541,305,897
2,673.993.079
2.756.968.593
2,764,511.040
2,745.570,788
3.107.674.325
3,023,238,874
3.134.027.003
3.480.779.821
810.446.000
780.961.250
785,093.500
799.903,950
783.875.950
811.998.250
877.184,250
928.320.545
896,95.1.245
922.898.500
957.809.300
952,127.500
3,138,786.338
3,256,459,379
3,289,781.174
3.341,209.847
3,457.869.029
3,568,966,843
3,641.695,290
3.673,891,333
3.914.627.570
3.946.137,374
4,091.836.303
4,432.907,321
3,392.873.281
3,294,378,654
3,580.425.172
3.738,937,599
4,070.359,031
3,741,632,505
3,767,694,495
4,093,869,293
4,689,551.974
5,115,727,534
1.027,479.260
1,028.200.260
1.059.749.000
1,168.845,000
1.203.687,250
1,156,718,982
1,069,653,084
957.548,112
824,087.711
763,993,528
4.420.352.541
4,322.578,914
4.640.174.172
4,907,782,599
5,274.046,281
4,898.351,487
4,837,347.579
5.051.437,405
5,513,639,685
5,879.721,062
President Simmons of New York Stock Exchange At
Meeting of Members Discusses Question of Increased Membership.
The question of increasing the membership of the New
York Stock Exchange, which is now under consideration by
a committee named several weeks ago, was discussed by
E. H. H. Simmons, President of the Exchange at a meeting
of members on Oct. 30. In its issue of Oct. 31 the "Times"
said:
Mr. Simmons reminded the 600 members who attended the meeting
yesterday that the present maximum of 1,100 seats' was fixed in 1879,
when the sale of forty additional seats was authorized. Since that time,
he pointed out, the business o' the Stock Exchange had increased tremendously. He drew attention to the growing importance of the New
York stock market and to the fact that this is now an international financial
market.
This, he pointed out, carries with it important obligations, one
of which is to keep its facilities adequate to transact the vast amourt of
business offered. The meeting was a closed one and the Exchange made
public no report of what took place. Mr Simmons, it was learned, was the
only speaker.
References to the appointment of the committee which is
to report in the matter appeared in these columns Oct. 20
(page 2167) and Oct. 27 (page 2305).
New York Stock Exchange to Give Out Monthly Figures
of Contracts Settled Through Stock Clearing
Corporation—Oct. Figures Over 10 Billion.
The New York Stock Exchange issued the following
announcement yesterday (Nov. 2.)
Beginning today the New York Stock Exchange will make public each
month the value of all contracts settled through the Stock Clearing Corporation (night clearing branch and day branch) for the preceding month.
The value of such contracts for the month of October. 1928, was $10,698.337.277.36.
New York Stock Exchange Ticker Service to Be Ex- •
tended to Florida in January.
The speedier ticker with which the New York Stock Exchange has been experimenting for some months will have
Its first service tryout in Florida on a new extension of the
Western Union Telegraph Company's ticker system, it was
stated in the "Times" of Oct. 24. In its account of the
new service it added:
The Western Union said yesterday that it expected to begin the service
in Florida about Jan. 2.
As announced some time ago, quotations will not be furnished at increased speed until installation of the new tickers has been completed
throughout the country, which probably will be late in 1929. Both the
Stock Exchange and the Western Union are to use the new ticker and
service will be speeded up at the same time throughout the country, so
that no group of subscribers will have an advantage over others.
The new ticker is capable of recording a daily turnover of 7,000,000
shares without delay. The present ticker often falls behind on days
when the trading does not exceed 4,000,000 shares.
The tickers which the Western Union will install in subscribers'
offices in Palm Beach, Miami, Jacksonville, Orlando, Tampa and St.
Petersburg, will be operated from the company's central transmitting office in New York. Quotations will be received in the Florida cities
2452
FINANCIAL CHRONICLE
[Yoh. 127.
In view of the fact, however, that a great many of our members were
simultaneously with their appearance on the company's tickers in New
.still strongly of the opinion that a merger of the two Exchanges should,
York.
Brokerage offices in Florida do a large business in the Winter because if possible, be effected, the President of the Board of Trade was authorized
to appoint another committee to use every possible effort to effect such
many traders go there for Winter vacations.
an arrangement, and, failing in this, to draw up some plan for establishing a
securities market.
Charles S. Goodwin, Formerly Vice-President of the
After one meeting of the committees of the two Exchanges, The Chicago
Bankrupt Overbeck & Cooke Co., of Portland, Ore., Stock Exchange advised us, in effect, that they did not wish to give further consideration to the matter; and your President was elected by the
Admits Embezzlement.
Directors as Chairman of a committee of three, the other two to be named
On Oct. 23 Charles S. Goodwin, formerly Vice-President by him, to carry out the mandate of the membership and arrange for
in securities.
of the defunct Overbeck & Cooke Co. of Portland, Ore.— trading
It had been the hope of many of our members that a satisfactory ara brokerage house which in January last failed with a loss of rangement could be made with The Chicago Stock Exchange to combine
approximately 31,500,000—plead "guilty" to one of five our activities, if possible, believing that it was the logical thing to do,
and would result beneficially to the members of both Exchanges. However,
joint indictments growing out of the failure, according to the •our
membership is almost unanimously of the opinion that there is a field
Portland "Oregonian" of Oct. 24. Previously, it appears, in Chicago for a much broader market in securities than at present exists.
the former broker had pleaded "not guilty" to the same They recognize that with our strongly established trading organization,
indictment, which charges "larceny by the embezzlement combining, as it does, the biggest force of floor traders, with the biggest
private wire center in the world, the Board of Trade is in a position to
of $1,881 in funds from one of the firm's customers." Pass- quickly effectuate a broad and liquid market which will materially assist
ing of sentence upon Mr. Goodwin was continued until Nov. in the upbuilding of Chicago and the West.
When a merchant opens a store, he does not attempt to preempt the
16, as in the meantime James P. Cooke, the former President
right to handle all the merchandising business in his city. Other stores
of the company, is to stand trial. The following is taken are established as the need develops. This natural law obtains in all lines
of endeavor. The needs of this territory are compelling and must be
from the paper referred to:
Mr. Goodwin had no statement to offer in connection with his pleas of met. Many of our members believe it is not only our privilege but our
guilty yesterday. Since the indictments have been pending against obligation to meet the situation, and that with our extensive contact with
him Mr. Goodwin has been represented by Tom Handley and John F. the outside world, business in securities generally will be greatly broadLogan as his attorneys. Mr. Logan was unable to be in court yesterday, ened.
Mr. Thomas Y. Wickham and Mr. Silas H. Strawn have been appointed
due to the death of J. J. Fitzgerald, his associate in the practice of law.
Mr. Goodwin, however, was represented by Mr. Hentley, who did not as the other two members of our committee. Mr. Wickham served as
make a statement to the Court.
Chairman of the two committees which have had this matter in hand
Mr. Handley told newspaper men that it never had been the intention previously. Mr. Strawn is counsel for the Board of Trade.
of Goodwin to cover up or withhold any facts in connection with the failThe committee is now at work and will use every effort to complete
ure of his company, but to the contrary he is disposed to supply all the arrangements for securities trading at as early a date as is consistent
information he can to all concerned.
with the care which must necessarily be exercised in such an important
"Mr.Logan and I have approved of Mr. Goodwin's course In this matter, matter.
and, accordingly, arranged for him to make a voluntary statement to the
A very substantial majority of the membership is whole-heartedly backing
district attorney and also answer such questions as the district attorney this undertaking, and its success is practically assured.
may ask," Mr. Handley said.
Yours very truly,
"By entering his plea of guilty, it is now possible for Mr. Goodwin to
SAMUEL P. ARNOT, President.
be used as a witness for the State in pending trials. Whether or not the
State will call him as a witness I am not informed," Mr. Handley added.
From this statement it was Judged that Mr. Goodwin might turn State's
Death of Leslie F. Gates, Former President of Chicago
evidence, if it was so desired.
The Overbeck & Cooke Co., bond brokerage house in Portland, crashed
Board of Trade.
Jan. 31, it being said that the firm failed with a loss of about 61,500,000.
Out of respect to the memory of its former President,
Scores of customers of the company were said to have lost virtually all of
Leslie F. Gates, who died on Oct. 19 at Battle Creek, Mich.,
their investments.
J. C. Gillingham at first was appointed receiver and later trustee in the Chicago Board of Trade closed
at 11:30 a. m. on Oct. 20.
the
firm's
audit
of
books
the
progressed
District
AtAs
bankruptcy.
torney Meyers caused five joint indictments tottbe filed against Mr. Cooke A special meeting of the directors of the Board of Trade
as the President, Mr. Goodwin as the Vice-President and Howard F. was held on Oct. 19, at which resolutions of tribute were
Philpott as Secretary-Treasurer.
adopted, and a delegation was appointed to attend the f
Although they were jointly indicted, the three officials elected to stand
separate trials, the State deciding that the trial of Cooke was to be called nueral. Mr. Gates, who was fifty-five years of age, had been
first. Cooke's trial has been set several times, only to be postponed be- ill but three days, his death following an attack of acute
cause the books of the firm were in the hands of auditors of both the State
and defense. Presiding Circuit Judge Kanzler recently announced that indigestion. Mr. Gates entered the grain commission business in 1906 as a member of the firm of Lamson Bros. &
Oct. 25 would be the definite date.
Sentence of Goodwin was delayed, it was said yesterday, pending the Co., with which he was affiliated at
the time of his death.
outcome of the Cooke trial. The other four indictments against GoodIn 1911 he was elected a director of the Chicago Board of
win are pending.
The failure of the Overbeck & Cooke Co. was noted in the Trade. He was elected President in 1919 and was re-elected
"Chronicle" of Feb. 18 1928, page 964,and its affairs referred the following year.
to in our issue of Mar. 3 1928, page 1288.
Chicago Daily News to Issue Mid-West Tabloid RotoPresident Arnot of Chicago Board of Trade Expects
gravure Section.
Early Development of Plans for Securities Trading
With the issue of Dec. 5, the Chicago "Daily News" will
—Consideration of Proposal for Merger with Chi- introduce a mid-week
tabloid rotogravure section with extra
cago Stock Exchange Abandoned.
color. The "Daily News" has issued a mid-week feature
In reviewing the progress which is being made in the section in standard newspaper size for years. This section,
development of plans for dealings in securities on the Chi- which appears each Wednesday, is devoted to books, drama,
cago Board of Trade President Samuel P. Arnot states that the arts, travel, society, women's affairs and special feature
a Committee, now at work, "will use every effort to com- material written by well-known critics and special writers
plete arrangements for securities trading at as early a date of the "Daily News" staff, bath in the home office and
as is consistent with the care which must necessarily be abroad. All of this material will be retained and expanded
exercised in such an important matter." In Indicating that in the new section, and made more attractive by the liberal
the possibilities of a merger with the Chicago Stock Ex- use of color illustration.
change are no longer entertained, Mr. Arnot says that "after
The section will be tabloid in size, five columns of 210
one meeting of the committees of the two exchanges, the agate lines each. It will be printed by the rotogravure
Chicago Stock Exchange advised us, in effect, that they process, black on white, with one extra color. The closing
did not wish to give further consideration to the matter." date of each issue will be two weeks in advance of publicaMr. Arnot's letter addressed to members of the Board, fol- tion—three weeks for extra color. This section and the
lows:
Saturday Photogravure section of the "Daily News," which
is being continued in its full seven column size, are the only
Board of Trade of the City of Chicago, Ciheago, Ill., Oct. 27 1928.
week-day rotogravure sections published by Chicago newsTo Members:
Because of the intense interest on the part of our members in the pro- papers.
the numerous inquiries as to
posal to trade in securities, and because of
the progress being made, this letter is written, in which the situation to
date is briefly reviewed.
Congress to Resume Brokers' Loan Study—Believe
On Jan. 24 last a petition signed by four hundred members of the Board
Only Radical Legislation Would Limit Speculative
committee
requesting
that
a
Directors,
of Trade was presented to the
Loans.
be appointed to inquire into the matter of listing and trading in stocks
and, also, as to the possibilities of a merger between the Chicago Board
The Washington correspondent of the New York "Journal
of Trade and The Chicago Stock Exchange.
A committee was appointed and several meetings were held with a of Commerce" stated on Oct. 28 that despite the fact that
committee of The Stock Exchange; but the two committees were unable the well known penchant for investigation will be given more
to reach an agreement as to a merger. Following this, a referendum vote or less of a baekset by the Presidential election in November,
was taken on the Board of Trade, to determine the sentiment with reference to the matter of trading in securities independently, resulting in a Indications to-day pointed to the feet that the Banking and
Currency committees will resume their study of high brokers'
vote of 795 favorable to such a proposition and 110 opposed.
Nov. 3 1928.}
loans at the December session.
further the correspondent says:
FINANCIAL CHRONICLE
Discussing the matter
2453
which can be readily tested for we now have a number of means of measuring
credit conditions to enable us to determine whether these money rates
rest on a substantial and logical basis. The best such measure is found in
the Federal Reserve statement, and in the item "bills discounted," which
shows the amount the member banks are borrowing currently from the
Federal Reserve Banks.
The experience of the past shows that when the member banks are
borrowing largely from the Reserve Banks money rates are always high.
and when the member banks are borrowing little from the Reserve Banks
money rates are always easy. Since the System began operations there
has always been a close relation between borrowing and money rates.
When you consider the matter carefully it is entirely logical that this
should be so. The money rate is determined from day to day by the amount
of money offered to loan and the demand for loans in the money markets.
A bank's power to lend is determined by the position of its reserves. When
its reserves on any morning are above the legal requirement the bank offers
money in the market and when its reserves are deficient it draws in money
or borrows.
The Federal Reserve reports give us a precise picture each week of the
condition of the country's bank reserves. For when bank reserves are
deficient banks call on the Federal Reserve for help. The amount of "bills
discounted" by the Reserve Banks shows each week the shortage of reserves
of the member banks,—the extent to which they have to call upon the
Federal Reserve for help.
To-day the member banks owe the Reserve Banks nearly one billion
dollars, which is more than at any time since 1921. The member banks
report currently reserves deposited with the Reserve Banks of something
over two billion dollars. Nearly half of these reserves represent money
borrowed from the Reserve Banks.
This is a condition which entirely Justifies high money rates. It is a
condition under which careful bankers are scrutinizing their assets with
considerable care and particularly are scrutioi7ing their investments and
their loLns in the speculative markets. For the American tradition is that
sound bankers are not content over any extended period to do business on
borrowed reserves.
These money rates are not artificial but rest upon a condition of the banking system which makes high rates logical.
Unless there is a decided change in the tendency of loans the convening
Congress Win find them at a record figure. The last announcement of the
Federal Reserve Board showed speculative loansfrom the New York member
banks alone at 54,772,000,000, a new record for the third successive week,
and it will be no surprise in official circles if these loans reach the $5,000,000
000 mark.
Congress became greatly disturbed at the last session when brokers'
loans passed the $3,500,000,000 point. Even with the election passed and
the incentive for investigation somewhat mitigated the present speculative
activity and the fact that the banks are furnishing a considerable portion
of the money to keep it going should stir Congress to action.
See New Laws Needed.
At both the Treasury Department and Federal Reserve Board, however.
officials privately expressed the opinion that not much could be accomplished
by a Congressional investigation unless some radical legislation that might
limit the speculative loans that could be made member banks or which
would control cash furnished by the Reserve banks to member banks,
were passed. Few officials could be found who would favor any such
revision in the American banking policy, at least not in the Coolidge Administration.
Officials called attention to the fact that the loans made on stocks and
bonds by the New York member banks amounted to $957,397,000, and
those made by the banks for theaccount of out-of-town banks to $1,736,811,000, as compared to $2,078,085,000 "for the account of others" to
show that nearly half of the brokers' loans reported by the Reserve Board
come from non-banking sources.
The large amount loaned for the account of out-of-town banks Is expected
to give Congress more concern than any other feature of the situation.
It has been contended in some circles that the speculative activity is drawing great volumes of "loose money" to New York. thus depriving agriculture and productive enterprise of necessary capital.
Officials, however, denied that productive capital is lacking. They
pointed to the large investment in productive business. extensive building
programs, expansion of industry and utilities, and the fact that well over
a billion dollars will be invested in foreign fields this year by Americans to
Causes of Borrowing.
show that there is plenty of cash to go around.
The principal reason why the banks have found it necessary to increase
Should brokers' loans continue to increase, however, with expansion of
the
Reserve
borrowing
Banks so largely is found in gold exports.
at
speculation on borrowed money,it would be difficult to say what the present their
Since a year ago this country's gold stock has been reduced half a billion
tendency will lead to, officials admitted.
It was understood that several Senators and Congressmen,including Sena- dollars by gold exports, and correspondingly bills discounted by the
tors Glass and La Follette, both of whom were interested in the investiga- Reserve Banks have increased half a billion dollars. This correspondence
tion at the last session, are keeping a close watch on the brokers' loan Is not accidental but one event is the direct cause of the other. When the
situation and other activities in connection with the Reserve system pre- gold was exported bank reserves were reduced half a billion dollars and
paratory to appropriate action when the last session of the Seventieth the banks had to make good this loss by borrowing.
There were other factors affecting bank reserves. About one hundred
Congress gathers.
million dollard of currency was retired from circulation, giving the banks
that much additional reserves. But this gain was more than offset by a
the amount of the Reserve System's open market purchases
W. Randolph Burgess of New York Federal Reserve reduction ingovernment
securities are 250 million less than a year ago and
holdings of
Bank Says Borrowings of Member Banks Justify holdings of banker's bills are 100 million larger. There were other minor
influences
but the gold loss was the dominating influence on bank reserves.
High Money Rates—Says Gold Position of United
Our Gold Position.
States Does not Offer Cause for Alarm.
This country still has a very large gold reserve—something like 40%
Speaking before the Convention of the Robert Morris
of the world's monetary gold. The question arises why our credit position
Associates at Cleveland on Oct. 31 W. Randolph Burgess, should be so affected by the loss of about 10% of the total we held a year
Assistant Federal Reserve Agent of the Federal Reserve ago.
In reply it may first be stated quite frankly that the Reserve System has
Bank of New York discussed both high money rates and our
the power to relieve the money stringency materially. By the purchase of
gold position. Dr. Burgess makes the statement that "our securities the Reserve Banks could put funds in the hands oi the member
present gold position does not offer cause for alarm." He banks which could be used to pay off indebtedness to the Reserve Banks.
To discuss the wisdom of any such procedure would involve a complete
adds: "We still have a gold surplus. We have also been exposition
of Federal Reserve policy. One of the pertinent questions in
finding ways of economizing gold and more can be found if any such discussion would be whether money which the Reserve Banks put
necessary. There is no reason why gold reserves should be Into the market would in fact be used to pay off indebtedness or would be
the basis for further expansion of credit for speculative uses.
a limitation to the supply of credit for every necessary use made
But turning again to the question of our gold supply I want to suggest
of trade." In his comments on the high money rates he that with future needs in mind we have no such surplus of gold that we
stated that "there has been a feeling on the part of some can afford to waste it. The September issue of the Federal Reserve Bulletin
an article analyzing gold reserves and gold requirements. This
that high rates are not to be taken seriously because they are contained
article showed that when we get back to a more normal amount of member
artificial." The present money rates, he says "are not arti- bank borrowing, which is a necessary step before more normal money
ficial, but rest upon a condition of the banking system which rates can be restored,we shall have only about 500 million dollars of what
may be called "free gold," that is gold in excess of our present minimum
makes high rates logical." "To-day" he states "the member legal
requirements. Our surplus gold is now no larger than the amount we
banks owe the Reserve Banks nearly one billion dollars, exported in a single year. It must be remembered that while we have a
which is more than at any time since 1921." He goes on to large gold reserve we also have a huge superstructure of credit built upon
This country has indeed 40% of the world's monetary gold, but it
say "the member banks report currently reserves deposited it.
probably has more than half the world's bank deposits. The ratio of our
with the Reserve Banks of something over two billion dollars. gold to our bank deposits is smaller than in many other countries.
Foreign banks and Governments still have substantial balances in this
Nearly half of these reserves represent money borrowed from
and some may be withdrawn in gold. In any event the normal
the Reserve Banks. This is a condition which entirely country
growth of trade and finance is likely to call for annual increases in gold
justifies high money rates. It is a condition under which reserves of perhaps 50 to 100 million dollars. We need a reasonably subcareful bankers are scrutinizing their assets with considerable stantial gold surplus.
Our present gold position does not offer cause for alarm. We still have
care and particularly are scrutinizing their investments and a gold
surplus. We have also been finding ways of economizing gold and
their loans in the speculative markets. For the American more can be found if necessary. There is no reason why gold reserves
should
be a limitation to the supply of credit for every necessary use of
tradition is that sound bankers are not content over any
extended period to do business on borrowed reserves." i trade.
But the loss of gold in this past year and the present high money rates
Dr. Burgess concludes with the statement that "the loss of should constitute a warning that Our credit resources are not inexhaustible.
cannot continue in the years before us to be quite as spendthrift of
We
gold in this past year and the present high money rates credit
for speculative use as we have been recently.
should constitute a warning that our credit resources are not
inexhaustible. We cannot continue in the years before us Gov. Strong of New York Federal Reserve Bank Left
to be quite as spendthrift of credit for speculative use as
Estate of $500,000.
we have been recently." An abstract of his address follows:
the late Benjamin Strong, Governor of
of
will
Under
the
extraordinary
difference
a year may make in credit conditions and
I The
in public psychology is illustrated by the statement in the newspapers a the Federal Reserve Bank of New York, two sons and a
few days ago that "money was easy" when the call rate went to 63 %. A daughter will share the bulk of his estate of $500,000. The
year ago 6;i% would have been regarded as a stiff rate. The prevailing
Surrogate's office on Oct. 29. In indirate for call money was in fact 4%. 'lime money was 43i, compared with will was filed in the
7% to-day and commercial paper was 4% compared with 53. % to-day, cating its provisions the "Times" stated:
I
Rates to-day are higher than at any time since 1921. And yet we become
used to changed conditions of this sort so rapidly that we are in danger of
Ignoring the lessons which such a change should carry.
Are Rates Artificially High.
There has been a feeling on the part of some that high rates are not to
be taken seriously because they are artificial. Fortunately this is a question
Mr.Strong, who died on Oct. 16. made no provision for two other daughters, writing that they were already "amply provided for." There are
two bequests to employees and two institutional gifts.
The income for life from $25,000 is to be paid to Anna Orlick of Norwalk. Conn., in appreciation of her care for Mrs. Katherine Strong Humphrey of Birmingham. Mich., one of Mr. Strong's three daughters. When
Mrs. Orlick dies the principal of the trust will be divided among Mrs
FINANCIAL CHRONICLE
2454
Humphrey, Benjamin Strong Jr. and Philip G. Strong. These are the
three who share the residuary estate, estimated at about half a million by
White & Case, attorneys for the estate. The sons receive one-third each
outright and the income from the other residuary fraction goes to Mrs.
Humphrey, whose children will share the principal.
The daughters who get nothing are Elizabeth and Barbara Strong, both
of Santa Barbara, Cal. Ernest Kendall of 335 East Sixty-sixth St., Mr.
Strong's valet, receives $2,000. while a like amount is left to a club formed
ofemployees ofthe Federal Reserve Board. Princeton University gets 31,000.
Governor Strong's death was noted in these columns Oct.
20; page 2170.
•
[VOL. 127.
First: A high tariff to protect prices of farm products.
Second: Establishment of machinery for a more effective and economic marketing system for farm products.
Third: Creation of a farm board which would have powers and
money in the form of a revolving fund with which to assist the farmer
in marketing his surpluses.
Fourth: Development of inland waterways as a means of more economical transportation of agricultural produce.
It may not be necessary to submit the fourth part of the program to
a special session, for the reasons that much of that proposed water transport system already is authorized and the engineering involved in an
extension of present plans would require too long a time for immediate
action by a special session.
Mr. Hoover's announcement came after conferences which
he had with Gov. McMullen of Nebraska and Senator Borah.
Robert Lansing, Secretary of State during the world war, Gov. McMullen in a statement issued at Lincoln, Neb. on
in the Cabinet of President Wilson, died in Washington on Oct. 25, referred to his talk with Mr. Hoover as follows:
"I had a conference a few weeks ago with Mr. Hoover. I wanted to
Oct. 30. He was sixty-four years of age. Following his
whether he meant business about doing something for agriculture.
retirement from the Cabinet in 1920, Mr. Lansing had been know
For an hour we talked over the table alone.
engaged in the practice of international law as a member of
"He said he contemplated, if elected, calling a special session of Conthe firm of Lansing and Woolsey with offices in Washington. gress for the sole purpose of taking up the agricultural question. He
Death of
Robert Lansing, Secretary of State Under
President Wilson.
said that if a special session was not called, it would be a year before
the question could be taken up and another year before any kind of
Proclamation of President Coolidge Designating Nov. legislation could be put into operation.
"There is quite a difference between taking the agricultural question
29 as Thanksgiving Day.
up before a special session of Congress and a conference as Governor
In a proclamation issued Oct. 23, designating Nov. 29 Smith proposes. Governor Smith would still be a private citizen when
be powerless. If Governor Smith
"as a day of general thanksgiving and prayer" President he called his conference, which would
knows what he proposes to give the farmers he would not need a
their
ceasing
Coolidge urged the people to observe the day by
conference.
"I am convinced that Mr. Hoover means to propose some kind of
daily work, and "in their homes and in their accustomed
crop surpluses without a subsidy. As
places of worship," to "devoutly give thanks to the Almighty legislation for the marketing ofnature.
Mr. Hoover says if elected he
to his plan, I do not know its
for the many and great blessings they have received." will do his utmost for agriculture and I believe him."
"Thrmigh Divine favor," said the President,"our fields have
Governor McMullen also commented upon Senator Norris's
been abundantly productive; our industries have flourished;
for Governor Smith stating that it would have
declaration
our commerce has increased; wages have been lucrative
much
effect
and would be beneficial to the Democrats because
of
pursuit
undisturbed
the
followed
and contentment has
had the greatest following of any man in Nethe
Senator
honest toil." The proclamation follows:
braska. Governor McMullen added:
A PROCLAMATION.
By the President of the United States:
The mason again approaches when it bra been the custom for generations to set apart a day of thanksgiving for the blessings which the
Giver of all good and perfect gifts has betowed upon us during the year.
It is most becoming that we should do this, for the goodness and mercy of
God which have followed us through the year deserve out grateful recognition and acknowledgment.
Through His divinefavor peace and tranquillity have reigned throughout
the land. He has protected our country as a whole against pestilence and
disaster and has directed us in the way of national prosperity. Our fields
have been abundantly productive, our industries have flourished, our commerce has increased, wages have been lucrative and contentment has followed the undisturbed pursuit of honest toil.
As we have prospered in material things, do have we also grown and expanded in things spiritual. Through divine inspiration we have enlarged
our charities and our missions; we have been imbued with high ideals which
have operated for the benefit of the world and the promotion of the brotherhood of man through peace and good will.
Wherefore, I Calvin Coolidge, President of the United States, do hereby
set apart Thursday, the 29th day of November next, as a day of general
thanksgiving ard prayer, and I recommend that on that day the people
shall cease from their daily work and, in their homes and in their accustomed places of worship, devoutly give thanks to the Almighty for the
many and great blessings they have received, and seek His guidance that
MOWN
they may deserve a continuance of His favor.
In witness whereof I have hereunto set my hand and caused to be affixed
POI
the great seal of the United States.
Done at the City of Washington, this 23d day of October, in the year of
indethe
of
ard
twenty-eight,
and
hundred
our Lord one thousand nine
pendence of the United States the one hundred and fifty-third.
CALVIN COOLIDGE.
By the President:
FRANK B. KELLOGG, Secretary of State.
"In the main I am one of his (Senator Norris's) followers. We agree
on the agricultural and power questions. But I do not agree with him
on doing away with parties, because I believe in government by parties.
For that reason I will not follow him into the Democratic camp."
Senator Borah of Idaho is understood to have discussed the
subject of farm relief with Mr. Hoover on Oct. 26, the New
York "Times" in a Washington dispatch on that day having
the following to say with regard thereto:
While Senator Borah did not say that Mr. Hoover had favored his
plan for dealing with farm relief in a special session in case Congress
failed to act this Winter, the inference was drawn that the subject was
under discussion at the conference and that Mr. Hoover knew Mr. Borah
was going to make a statement embodying his proposal.
In his speeches in the West in September and those recently macle
in the South and Border States, Senator Borah stressed farm relief.
Western leaders urged him to present to Mr. Hoover the need for
some utterance that would give assurance that the latter would act
promptly on the question in the event of his election in November.
Urges speedy Legislation.
"Unless the short session this Winter takes up the subject of farm
relief and concludes satisfactory legislation upon it, I am thoroughly :n
favor of an extra session of Congress," stated Senator Borah.
"I would like to see the session called at once. And, first, pass a
tariff bill with a special view of increasing duties upon farm products;
second, pass a marketing bill establishing a more satisfactory marketing
system, so as to enable the farmers to market their products without
being put to the enormous expense which is now necessarily incurred—
a bill of this nature is now pending in the Senate; third, create a
farm board with ample authority and with an ample revolving fund to
assist the farmer in marketing his surplus in accordance with sound
business principles.
"I think there are three propositions in the question of farm relief
which can be covered by a special session, so as to enable the farmer
to get the benefit of legislation for the next year's crop. As I see it, lie
ought to have better protection for his products; he ought to have a
better marketing system, and he ought to have a farm board with
authority and with funds to cooperate in disposing of his surplus.
"The campaign has developed this question and these issues so that
there need not be any necessary delay and agriculture would get the
benefit of it for the coming year. There is every reason for a special
session and to my mind no sound reason against it."
Herbert Hoover Republican Candidate if Elected President
Will Call Special Session of Congress to Enact Farm
Relief Legislation—Senator Borah's Proposals.
Herbert Hoover, Republican Nominee for President made
known on Oct. 27, his intention, if elected President, to convene Congress in extra session to bring about the enactment
of legislation in the interest of the farmer, in the event that
the matter was not disposed of at the December session. Mr. Senator Norris Indicates Support of Gov. Smith for PresiHoover's satement follows:
dent—Favors Latter's Farm and Water • Power Pro"The question of a special session of Congress after March 4, in event
posals.
for
discussion
under
been
has
Party,
Republican
the
of the return of
some time. There are a number of questions, particularly agricultural
Senator
George W. Norris, of Nebraska, Progressive, anrelief, which urgently require solution and should not be delayed for a
nounced at Portland, Ore. that he intended to support Gov.
whole year. It is our most urgent economic problem.
"I should hope it can be dealt with at the regular session this Fall, Smith, the Democratic Nominee for President. Associated
be acand thus a special session be avoided. If, however, that cannot
would Press accounts from Portland state:
complished, I would, if elected, not allow the matter to drift and
early constructive
of necessity call an extra session so as to secure
action."
The Washington correspondent of the "Herald Tribune" in
noting on Oct. 27 Mr. Hoover's program said:
for
The major proposals which would be submitted to the legislators
down
the relief of agricultural distress would be the fundamentals ,aid
by Mr. Hoover in his West Branch, Iowa, speech early in the campaign
Mr.
and advocated yesterday by Senator Borah, who, at luncheon with
if the
Hoover, urged the advisability of a special session of Congress
farm problems remained by the time Mr. Hoover might take office.
The program which Mr. Hoover would submit to Congress consists
of the following:
"For a Progressive there is no other place to land except in the Smith
camp," said Senator Norris, who is listed in the Congressional Directory
as a Republican, but refers to himself as a "Progressive."
He based his endorsement of the Democratic nominee on Governor
Smith's stand on farm relief and against the "water-power monopoly."
"I am not with Governor Smith on his stand on prohibition," he
said,"but I think that will be worked out satisfactorily if he is elected."
The Senator, who was put in nomination at the Republican convention in Kansas City as a candidate for President, declared that Governor Smith's "stand on the water-power monopoly and on relief for
the farmers is right."
"I couldn't reach any other conclusion but to support Governor
Smith for President," he affirmed, and continued:
Nov. 3 1928.]
FINANCIAL CHRONICLE
2455
Attacks Hoover on Power Policy.
From coast to coast and from the Canadian border to the Rio Grande
"The great battleground of this campaign should be in the Middle statistics gathered by the Associated Press tell the same story, that of an
unprecedented determination on the part of voters of both sexes to take
West, in the agricultural section of the country.
"Just how States in that section will vote no one can foretell, but the part actively in the contest of 1928.
farmers and those who depend on the farmers for their prosperity
Slay-at-Home Vote.
should support Mr. Smith. His program, as he has announced in a
All of those entitled to vote, however, will not do so, a study of the
number of his speeches, is to the great advantage of the nation, be- vote
of other elections showing a considerable percentage, not exercising
cause it will give the farm sectors the relief they are so much in need their privilege. A conservative estimate, based on
other years, would
of at the present. The Republicans offer nothing except a few kind indicate the stay-at-home vote will be 15%.
words.
The estimated increase in actual votes to be cast on this basis, would
"As for the power problem, it is a most evident fact that Hoover will be about 6,500,000 over 1924. This would give an estimated vote of
do nothing to curb this giant trust. It is tightening its grip on the more than 35,500,000. compared with the 29,091,492 four years ago.
country, and the only one who will aid us, as I see it, is Smith. For
Increase in Women Voters.
these 'reasons I have decided to support the Smith-Robinson ticket in
One of the surprising results noted in the 1928 tabulation is the trethe coming election. Heretofore I have campaigned in the interest of
Progressive candidates for the Senate. From now on I shall speak ;or mendous increase in the number of women voters qualifying. Political
leaders and State officials generally agree that the women will hold the
Smith and the Democratic national ticket."
balance of power. Every State has shown a startling jump in female
registration.
Figures of Registration in New York City Showing
It has been impossible to ascertain the total number V women entitled
to vote, but, based on the known segregation of registration, it is estiNumber of Men and Women Qualified to Vote.
mated that in the larger cities women will cast between 35 and 45% of
Revised and complete registration figures made public the total vote. The percentage probably
will be smaller in towns and
by the Board of Elections on Oct. 28 show that 2,029,601 rural sections.
is
the
registration
Following
with the vote in 1924:
by
States,
compared
persons are entitled to vote in the five boroughs of Greater
Registration
Vote
Registration
Vote
New York on Nov. 6, or 5,947 more than had been previously
in 1928. in 1927.
in 1928. tn 1927.
Alabama
300,000
166,593
Nevada
26,921
43,500
reported. The foregoing is quoted from the "Herald Tri- Arizona
105,388
73,961 New Hampshire_ 230,000
164,769
343,553
138,532 New Jersey
1,771,000 1,088,054
bune" of Oct. 29 which furnished the following additional Arkansas
2,313,816 1,281,778 New Mexico
California
112,830
130,000
375,000
information.
Colorado
342,260 New York
4,875,721 3,258,319
623,973
Connecticut
400,295 North Carolina__ 700.000
482,687
120,088
The figures show an increase of 266,703 men and 262,785 women over the Delaware
199,081
90,865 North Dakota__ 257,000
250,000
Florida
109,154 Ohio
2,750.000 2,016,237
numbers registered in 1924.
495,269
166,577
Georgia
Oklahoma
528,415
600,000
It is the heaviest registration ever known. The total is an increase of Idaho
185,000
148,295 Oregon
427,446
279,488
529,488 over that of 1924,the last Presidential election year. and an increase Illinois
3,260,000 2,470,067 Pennsylvania
3,943,000 2,144,852
1,465,000 1,272,390 Rhode Island
210,115
269.860
of 769,843 over that of 1927. Of the total registrants entitled to vote this Indiana
1,000,000
978,960 South Carolina... 200,000
50,751
year 1.222,880 are males and 806.721 are females. The proportion of more Iowa
750,000
Kansas
682,451 South Dakota__ 250,000
203,943
than one-third female registration shows a decided increase in registration Kentucky
815,332 Tennessee
850,000
420,000
300,275
voters.
women
by
Louisiana
121,951 Texas
370.000
1,500,000
657,509
192,192 Utah
307,000
170,000
156,990
Brooklyn with a total of 710.775 has the largest number of registrants of Maine
663,732
358.630 Vermont
175,000
102,912
any of the five boroughs. Of this number 275,756 are females, an increase Maryland
Massachusetts.... 1,720,778 1,129,909 Virginia
300,000
223,726
of 85,580 Over 1924, and 130,123 over last year.
2,000,000 1,160,298 Washington
Michigan
550,000
421,549
1,250,000
822,146 West Virginia.... 853,133
In Manhattan the total registration was 548,448. of whom 220,552 were Minnesota
583,662
300,000
Mississippi
112,515 Wisconsin
840,779
1,000,000
females. The total of female registrants was 37.512 more than 1924.
1,504,000 1,307,985 Wyoming
Missouri
100,000
79,900
The total registration in Queens is 356.183, an increase of 149,448 over Montana
241,000
174,423
last year. The women who registered numbered 151,835 as compared with Nebraska
464,169
Total
750,000
43,084,257 29,091,492
73.701 in 1924 and 73,960 last year.
There are a number of reasons for the marked increase in registration.
The total of registrants in each of the five boroughs with the number of
The injection of the prohibition and religious issues into the campaign acmale and female registrants is as follows:
counts for a large part. The radio undoubtedly has also contributed, due
BoroughMen.
Women.
Total.
greatly increased use of the air route by political orators to reach
Manhattan
327,896
220,552
548.448 to the
Bronx
223,073
135,134
358,207 the electorate. Treasurer Gerard of the Democratic National Committee
Brooklyn
435.019
275,756
710,775 recently estimated the Democrats had spent $600.000 on radio broadQueens
204,348
151,835
356,183 casts. The Republicans also have spent huge sums.
Richmond
32,544
23.444
55.988
Dr. Hubert Work, Chairman of the Republican National Committee, atTotal
1 222,880
806.721
2,029,601 tributes the increase largely to women.
J. Raskob, Chairman of the Democratic National Committee,says
John
In 1927 the total registration of 1,259,758 was divided as follows:
it is "most important to the future well-being of our country to note the
BoroughMen.
Women.
Total.
Manhattan
238.282
122,909
359,191 increase."
Bronx
The "Solid South," which is experiencing the thrills of a vigorous Presi142.986
65,837
208,803
Brooklyn
299,994
145,633
445,627 dential campaign for the first time in years, has qualified more voters than
Queens
132,775
73,960
206,735 ever. Registration
the Southern States is different from that which
Richmond
25,422
13,980
39.402
prevails in other sectiors of the country. South Carolina, for instance,
Total
837.439
422.319
1.259.758 has a re-registration every 10 years. In most of the South. once the voter
is registered the registration holds good as long as he pays his poll tax.
The registration by boroughs in 1924 was:
Payment of the poll tax, however, is not always a fair criterion for measBoroughMen.
Women.
To al.
Manhattan
317,184
183.040
500.224 uring registration and the voting. In Arkansas 345.687 persons paid a poll
Bronx
150,233
82,451
232,684 tax in 1924. Yet the total vote cast for President was only 138,532.
Brooklyn
333,397
190,176
528,573
No Registration in Texas.
Queens
125,278
73,701
198,979
Richmond
25,985
14.568
39,653
Texas, which is being watched closely by both Republicans and Demothis year, has no registration of voters. Gov. Moody estimates the
Total
956,177
543,936
1.500.113 crats
voting strength at 1,500.000, but expects a vote of only 800,000, based on
With evidence of alleged fraudulent registrations obtained by his 400 aspast experience. The poll tax receipts issued in 1924 were 1,195.239.
sistants in the last two weeks, George Z. Medalie, special assistant to the
In New Mexlico the first real registration in its history has been put
Attorney General, expects to appear to'day before grand juries in Maninto effect this year and the lists are being purged in keeping with the
hattan, Brooklyn and the Bronx.
provisions of the new election code.
New York. the home State of the Democratic Presidential nominee,
Over 43 Million Voters in United States Qualified to which is the scene of an intense battle for the prize of 45 electoral votes,
has shown an enormous jump in registration. Both major political parties
Participate in Presidential Election Nov. 6-Com- are claiming the benefit of the increase.
The total up-State potential vote in the Empire State, which is normally
pares with 29 Million in 1924-Registration in New
Republican, is about 19% over the 1924 figures. In the City of New York
York State.
a consistent Democratic stronghold, the registration leaped from 1,500.113
According to figures compiled by the Associated Press, in 1924 to 2,023.654 this year, an increase of over 34%
California. the home State of the Republican standard bearer, also has
over 43 million men and women (43,084,257) have qualified
shown a substantial climb. The vote of four years ago was 1.281.766 and
to vote in the coming Presidential election Nov. 6, the fig- the 1928 registration is 2,313,816. The registration there is now divided as
ures comparing with 29,091,492 in the last Presidential elec- follows:
1,535,751
tion. The compilation is made known in copyright advices Republican
592.161
Democratic
by the Associated Press from Washington Oct. 28, which Prohibition
17,746
12,872
Socialist
state:
153,950
Declining to state
1,327
William Tyler Page, clerk of the House of Representatives, who for Miscellaneous
Pennsylvania, a bulwark of Republicanism for generations, has kept
many years has made a close study of election figures, estimates that the
steady
upward
the
East
populous
in
the
States
in
potential number of voters "may not exceed 45,000,000" and that the company with other
total vote will be about 38.000,000. In a statement prepared for The registration trend. Philadelphia has registered this year 424,044 men and
306,453 women, compared with the vote of 338,579 males and 151.743
Associated Press he says:
"The total number of votes cast in 1924 was 29,091,492. The number females in 1924.
of citizens of voting age in the United Stat-s according to the census
The following table shows this year's registration by sexes in other large
of
1920 was 54,421,832. No doubt the number today is much greater, but
this does not determine the number of persons entitled to vote. RegistraMen.
Women.'
Citytion and other qualifications in the various States are prerequisites to
204,789
157.076
St. Louis
voting.
81.013
68,992'
"The figures showing the total number of registered persons in the United St. Paul
188.168
139,119
States arc not available. After eliminating all persons 21 years of age Baltimore
77,743
67,317
and over who are disqualified for one reason or another, the potential Portland. Ore
26,396
23.244
Duluth
number of voters may not exceed 45,000,000.
"There are no bases upon which the number can be computed with
Foreign Vole.
any degree of
The age basis is inaccurate and in the absence of
The so-called foreign vote, the subject of conflicting claims by the rival
the grand total
accuracy.
of registered persons any discrepancy between the number
of those voting and those not voting Is conjectural.
major parties, will be the largest in history, according to the foreign lan"Reports throughout the country of great increased, registration in- guage information service of New York City, which has completed a survey
dicates a tota lvote at this year's election of 38,000,000.'
of 852 publications prirted in 16 languages. The total number estimated
From the copyright Associated Press advices we also Is 7.500.000. compared with 6,200,000 in 1920.
Chicago shows a registration this year of 1,386,631. compared with the
take the following:
vote of 1,064,895 four years ago.
FINANCIAL CHRONICLE
2456
In some States. notably New Jersey and New York, there have been
charges of fraudulent registration. Boards of election have thrown out
many thousands of alleged illegal registrants, with the possibility that
the list will be further reduced before election day.
While the huge registration Is being acclaimed on all sides, there Is a
fly in the ointment in that it Is well within the realm of probability that
the final result will be late. In the event of a close election the public
may have to wait a full day until election boards can tabulate the enormous
floods of ballots. In New York City hundreds of new polling places have
been created and provisions have been made to allow those standing in
line to register their votes if they are unable to enter the polling place before
the closing hour, 6 p. m.
Robert Moses, Secretary of State at Albany, issued on
Oct. 30 a compilation of the registration in New York State,
this showing 4,885,276 persons eligible to vote Nov. 6.
This is an increase of 997,722 over the figures of 1924,
says a dispatch from Albany to the New York "Times"
from which we also take the following:
Only three counties in the State showed decreases-Cayuga, Schoharie
and Yates. The increases in some counties run from 1-10 of 1% to more
than 49% outside of New York. Queens County shows an increase of 78%.
The compilation showed the number of election districts was 8,267, of
which 3,493 are in New York City and 4,774 are outside the city.
The registration comparison is as follows:
Election
Registration
Counties1924
1928.
Districts.
101,763
Albany
121,013
197
Allegany
23,606
43
24,995
Bronx
232,684
358,207
609
Broome
51,012
67,400
103
Cattaraugus
37,883
71
40,663
Cayuga
37,789
37,431
63
55,637
Chautauqua
104
62,528
35,029
Chemung
41,847
71
21,997
Chenango
42
22,760
21,997
Clinton
24.661
54
23,647
Columbia
49
25,630
17,131
Cortland
40
18,760
26.997
27,259
Delaware
66
44,860
54.465
Dutchees
87
226,684
Erie
388
307,882
18,338
Essex
40
21,500
23,393
47
Franklin
23,685
20.715
53
Fulton
24,536
21,516
23,776
Genesee
38
17,243
35
18,872
Greene
11
3,000
Hamilton
3,445
63
31,769
Herkimer
35,574
111
47,499
43,900
Jefferson
1,229
710,775
528,573
Kings
44
Lewis
14,743
14,468
40
23,316
21,888
Livingston
Madison
52
23,727
22,852
311
195,967
155,048
Monroe
53
29,482
26,521
Montgomery
172
139,145
92,919
Nassau
941
New York
548,349
499,604
91
57,927
44,481
Niagara
153
96,109
Oneida
78,070
150,181
232
Onondaga
119,856
40
32,717
Ontario
30.678
66,787
54,231
108
Orange
17,151
32
16.238
Orleans
39,912
37,766
86
Oswego
67
30,407
28.781
Otsego
13
9,540
8.400
Putnam
199,031
619
356,283
Queens
70,138
62,223
107
Rensselaer
39,653
55,900
Richmond
95
28,735
32,503
55
Rockland
46,602
48,829
117
St.Lawrence
34,544
37,487
68
Saratoga
44,794
56,289
98
Schenectady
14,918
31
14,689
Schoharie
8,780
21
8,990
Schuyler
13,863
14,408
28
Seneca
45,271
48,857
79
Steuben
67,674
81,936
139
Suffolk
22,944
23,390
44
Sullivan
15,416
16,153
37
Tioga
20,902
23,141
54
Tompkins
48,883
50,503
89
Ulster
18,642
21,777
38
Warren
26,834
27,811
54
Washington
29,685
31,512
50
Wayne
153,317
214,090
315
Westchester
18,838
19,233
42
Wyoming
12,043
11,334
29
Yates
'
Total
New York City
Outside New York
8,267
3 493
4 774
4,885,276
2,029,514
2,855,762
3,887,554
1,499,545
2,388,009
Increased Wages for Trainmen and Conductors on Western
Railroads Recommended By Emergency Board Appointed by President Coolidge.
Increased wages to some 66,000 trainmen and conductors on
Western roads are recommended by the Emergncy Board
named by President Coolidge on Sept. 29 following the
failure of the Federal Board of Mediation to effect an agreement in the Western rail wage dispute. The Emergency
1 2% with no change
Board proposed increased wages of 6/
1
2% with the
in the present working rules, or an increase of 7/
elimination of the "double-header" and tonnage limitation
rules. It is pointed out in the "United States Daily" that
each of the foregoing includes the continuation of existing
differentials for mountain and other special service, and the
addition of the requested increase to baggagemen for mail express, and dynamo service. The further proposals of the
Emergency Board suggest that:
[VOL. 127.
The findings of the Emergency Board were presneted to
President Coolidge on Oct. 29 and were made public Oct. 30.
The members of the Board are James R. Garfield of Cleveland, Ohio, Secretary of the Interior in the Roosevelt administration; Walter P. Stacy of Raleigh, N. C., Chief Justice of
the Supreme Court of North Carolina; Prof. Davis R. Dewey
of the Massachusetts Institute of Technology, Cambridge,
Mass.; Chester H. Rowell of Berkeley, Calif., and George T.
Baker of Davenport, Iowa. Mr. Rowell was formerly a member of the California Railroad Commission. The appointment
of the Board was noted in these columns Oct. 6, page 1899.
In indicating, in our issue of Sept. 8 (page 1343) the efforts
of the Board of Mediation to effect an adjustment of the
dispute said:
Proposals of the employes for pay increases ranging from 10% to
18% brought an offer by the railroads for increases averaging 74%,
providing that certain working rules be abandoned. While accepting
the wage compromise the employes had declined to drop the working
rules.
It is learned from the report of the Emergency Board that
for the largest classes of employes the wage demands proposed an increase of from 16 to 27% over existing rates of
pay. Telegraphic advices from Washington Oct. 30 to the
New York "Times" referring to the Emergency Board's report stated:
President Coolidge considers the Emergency Board's report complete
and impartial and is hopeful that its conclusions will be accepted.
The President found that the report varied slightly from the decision
of the Mediation Board so far as wages was concerned, but suggested
arbitration as to rules, which are also a subject of difference.
Under the law neither side to the controversy can change the status
quo until thirty days after the report of the Emergency Board. The
trainmen cannot strike or the railroads declare a lock-out in that period.
It is the view here that the alternative recommendations offer a compromise which will be accepted and that a strike that has threatened for
months in Western territory will be averted.
Annual Convention of Investment Bankers Association
-Details in Our Issue To-day-Pliny Jewell Still
in the Hospital.
The condition of Pliny Jewell of Coffin & Burr, Inc. of
Boston, who was injured when a Junkers plane containing
delegates to the convention in Atlantic City of the Investment Bankers Association of America, crashed to the
meadows on Oct. 18, was reported fair at the Atlantic City
Hospital on Oct. 31. Physicians are reported as stating
that he is resting comfortable and that they did not think
he was in any immediate danger. The accident, as stated
in our issue of Oct. 20, page 2182, resulted in the death of
W. Octave Chanute of Denver, and in injuries to several
other delegates to the convention. It is understood that
Mr. Jewell is the only one of the injured who has been
unable to leave the hospital. The details of the convention
will be found elsewhere in this issue of our paper.
Transfer of Bank of Italy and Bancitaly Corporation
Stock for Trans-America Corporation Shares
Approved.
Announcement was made in San Francisco on Thursday
of this week (Nov. 1) by A. P. Giannini, Chairman of the
Board of the Bank of Italy National Trust & Savings Association and President of its subsidiary institution, the Bancitaly
Corp., that shareholders representing the controlling interest
in the bank and corporation have approved the plan for the
exchange of their present holdings for stock in the TransAmerica Corporation, the new organization, incorporated
recently under the laws of Delaware. The following concerning the matter is taken from yesterday's New York
"Journal of Commerce":
The formation of the Trans-America Corp. is being carried out with
the purpose of stabilizing the market in the various enterprises linked with
Bancitaly. The Trans-America Corporation shares will be exchanged for
theshares in present Giannini companies and listed on the various exchanges.
It is preferred that speculation take place in the shares of a corporation rather
than in bank stocks.
Sufficient stock of the Bank of Italy and of Bancitaly Corp. has been
offered to assure approval of the plan,it was stated yesterday. Trustee certificates have been given for shares so deposited.
These certificates, it was explained to-day, are being issued, since dividends are payable on Bancitaly Corporation and Bank of Italy on Dec
15. Hence the stockholders may deposit their Bancitaly shares or Bank
of Italy shares and receive certificates in exchange, without affecting
dividends they are due to receive on their present holdings next month.
The certificates will be issued by the Bank of Italy of San Francisco as
trustee and will state that on Dec. 17 the bearer of the certificates will
on
increase
of
7%
%
be entitled to receive Trans-America Corp.stock.
The Washington agreement, providing for an
The San Francisco Stock Exchange has accepted this plan and dealing
the standard rates for conductors and trainmen, and a procedure, including arbitration under the railway labor act, under which the double- In Trans-America stock will begin shortly. Similar arrangements will be
header helper district car limit, and tonnage limit rules might be taken made in the East and will be announced later.
The exchange plan approved called for a share for share exchange with
up by each carrier in special cases where a carrier claimed such rules
Bancitaly and 1.1Y4 shares of Trans-America for one Bank of Italy share.
produced burdensome or objectionable conditions.
May
1,
effective
made
Regarding approval of the exchange plan the official statement issued by
That whatever proposal is accepted should be
Mr. Giannini in San Francisco and wired here, said:
1928.
Nov. 3 1928.]
FINANCIAL CHRONICLE
"This means that the stock of the Bank of Italy and the Bancitaly Corporation and their affiliations will be transferred to the Trans-America Corporation. The stock of the Bank of Italy and Bancitaly Corporation will
later be withdrawn from the various exchanges and Trans-America Corporation stock will replace them."
The Bank of Italy,as of June 29 this year, had atuhorized and outstanding
capital stock amounting to $50.000,000, par $25. This followed an increase
the previous year of capital stock from $30,000,000 to the present total.
Through ownership of securities and through interlocking directorates the
Bank of Italy is controlled by the Bancitaly Corporation. The Bank of
Italy, in turn, controls the California Joint Stock Land Bank and the National Bancitaly Corporation, a subsidiary securities corporation.
The June balance sheet showed $804,675,524 total resources for the Bank
of Italy. More than 25% of its loans were shown to have been in first
mortgage loans on real estate.
Both Bank of Italy and Bancitaly stocks are listed on exchanges throughout the country.
ITEMS ABOUT BANKS, TRUST COMPANIES, ETC.
Arrangements were reported made this week for the transfer of two New York Stock Exchange mem berships, one for
$470,000 a decrease of $5,000 from the last preceding
sale and the other for $460,000. A third membership was
reported sold at the last mentioned price being that of
Henry R. Monroe, recently expelled from the Exchange.
The purchaser was John A. Maier.
Arrangements were reported made this week for the
transfer of a New York Curb Market Membership for
$125,000. This is the same as the last preceding sale and
the high record price.
2457
urer. The Board of Directors of the new company will be
the same as that of the Bankers Trust Company, while an
Executive Committee will be composed of Messrs. William
Ewing of J. P. Morgan & Co., Landon K. Thorne of Bonbright & Co., George Murnane of Lee, Higginson & Co., and
Seward Prosser, A. A. Tilney, B. A. Tompkins and F. N. B.
Close, all officers of the bank.
The Equitable Trust Company of New York announces
that C. F. Puckhafer has become a Vice-President of the
institution. Mr. Puckhafer entered the banking business
in 1901 as a messenger for the Importers and Traders National Bank which was merged with the Equitable Trust
Company of New York in May 1923. He was appointed an
Assistant Cashier of the Importers Bank in 1919, and
placed in charge of that bank's credit department. In 1925
he was made an Assistant Vice-President of the Equitable
Trust Company, and on Oct. 30 was elected a Vice-President
of the company. He is located at the company headquarters,
11 Broad Street.
R. L. Epple has been appointed a Manager of Equitable
Trust Company's Foreign Department. Mr. Epple received
his early banking education in Germany and England. He
came to the United States in 1910, organizing a foreign
department for the Garfield National Bank. He joined the
Equitable foreign department staff in 1920, was appointed
an Assistant Manager in 1923, and on Oct. 30 was made a
Manager of the bank's foreign department.
Two New York Cotton
-Exchange Memberships were
reported sold this week, that of Robert P. McDougall to
Charles W. Sheppard, for another, for $30,750 (a decline of
The newly organized Commercial National Bank & Trust
$250 from the last preceding sale) and that of Thomas J. Company of this city, now in temporary quarters at 43 ExBeauchamp to I. J. Shlenker, for another, for $31.950.
change Place for organization purposes, will open for business
in permanent quarters about January 1 at 56 Wall Street
A Los Angeles Stock Exchange membership was reported and will transact a general banking and trust
business. The
sold the week for $125,000.
institution has a capital of $7,000,000 and a surplus of,
Sale of two treasury mem- berships in the Los Angeles $7,000,000. The officers of the bank are: H. P. Howell,
Curb Exchange for a consideration of $17,000 each, which President; Walter G. Kimball, Vice-President; Townsend
figure is equal to the record price for all time for a member- McWilliam, Cashier; Charles E. Wolff, Assistant Cashier;
Foster W.Doty, Assistant Trust Officer; William T. Taylor,
ship on this Exchange, was announced Oct. 24.
Secretary. The directors are: William H. Albers, Harold
A. Lawrence Lowell, Pres-ident of Harvard University, 0. Barker, Albert Blum, George Blumenthal, Rogers Caldand Robert A. Milliken, the American scientist and winner well, Walter P. Chrysler, S. Sloan Colt, Edward P. Farley,
of the Nobel prize for physics, will be the speakers at the Jacob France, Samuel L. Fuller, George R. Hann, Louis J.
160th annual banquet of the Chamber of Commerce of the Horowitz, Herbert P. Howell, Richard F. Hoyt, Henry R.
State of New York to be held at the Waldorf-Astoria, Thurs- Ickelheimer, E. C. Jameson, J. Ford Johnson, Sidney R.
day, November 15, according to announcement made by Kent, Clement M. Keys, Wilfred Kurth, Robert Lehman,
Walter S. Gifford, Chairman of the Banquet Committee. William G. McCullough, Maurice Newton, Charles F.
Leonor F. Loree, President of the Delaware & Hudson Com- Noyes, William B. Scarborough, Elmer Schlesinger, David
pand and President of the Chamber, will act as toastmaster. A. Schulte, H. Nelson Slater, Ray P. Stevens, Harold E.
President Lowell will have for his topic, "The Relation of Talbott Jr., William Wrigley Jr.
Regarding the increase in capital of the Bank of the
Education to Industry," while Professor Milliken will talk
on "The Relation of Science to Industry." Gano Dunn, of the Manhattan Company, referred to in these Columns
F. C. Munson, William L. Saunders and Felix M. Warburg, Oct. 27 page 2322, the "Wall Street Journal" of Nov. 2,
said:
in addition to Mr. Gifford, are in charge of the
arrange-
ments.
The Bankers Company of New York, recently formed to
conduct the investment banking business previously carried
on by the bond department of the Bankers Trust Company,
officially opened its doors for business on Nov. 1. The
establishment of a separate securities organization by the
Bankers Trust Company (noted in our issue of Oct. 20,
page 2185), is in line with the trend of the country's largest
financial institutions to segregate this division of their
business. With the scope of its activities considerably
broadened as a result of the segregation, the new company
will act as underwriters and distributors, both in this country and abroad, of government, state, municipal, railroad,
public utility and industrial securities. In addition to offices in New York, London and Paris, the organization will
have its own offices in fifteen cities throughout the country, including Albany, Atlanta, Baltimore, Boston, Buffalo,
Chicago, Cincinnati, Cleveland, Detroit, Hartford, Minneapolis, New Orleans, Newark, Pittsburgh and St. Louis.
B. A. Tompkins, who has been Vice-President of Bankers
Trust Company in charge of its securities ope ations, is
President of the new company and A. A. Tilney, President of
Bankers Trust Company, is Chairman of the Board. Other
officers include: R. C. Hogan, R. H. Fullerton, W. J. Lippincott, Henri Fischer, C. L. Stacey and Paul Sims, VicePresidents; J. H. Eager, J. F. Grimm, T. T. Coxon, G. F.
Trefcer, R. C. Morris and E. F. Dunstan, Assistant VicePresidents; J. F. Rath, Secretary; and F. A. Auer, Treas-
Situation that has arisen in regard to Bank of Manhattan Co. rights still
continues to be a source of considerable interest in bank stock circles.
Owing to heavy short sales of the rights it is believed that something approaching a corner has been created in them. This caused the rights to
advance from around 40, when they came out, to a high of 88. A financial
Institution which holds a large block of Manhattan Co. stock was a heavy
buyer of the rights. It is said that at least 50,000 more rignts were sold
than were actually issued on occasion of recent increase of capital from
$12,500,000 to $15 MOO MOO.
Some brokers maintain there is no corner in the rights and point to the
recert price recession to around 58. However, there is known to be considerable anxiety amorg certain speculators who must make delivery by
November 16. There has been talk of a compromise with the institution
in question over the price of settlement. Attempts to hedge on the transaction are also responsible for a sensational rise in the stock to above 780.
The Consolidation of the Municipal Bank and Trust
Company and the Seventh National Bank of New York into
the Municipal Bank and Trust Company, a $75,000,000
institution, will be voted upon at special meetings of the
stockholders of both institutions on Nov. 28. An item
relative to the plans appeared in our issue of Oct. 13, page
2045.
The National City Bank of New York this week extended
its service into Fordham with the opening of a branch on
Creston Avenue near Fordham Road. The branch will be
a complete unit of the National City organization, offering
a full complement of banking and investment facilities.
The Fordham branch, the second to be opened by the
National City in the Bronx area and the twenty-ninth in
Greater New York, is the seventh branch to be established
by the bank in the city this year. In addition, the bank
2458
FINANCIAL CHRONICLE
has 88 branches located in the principal financial and commercial centers of 22 foreign countries.
The Bank of America National Association on Oct. 27
opened a branch office at Westchester and Castile Hill
Avenues, Bronx, N. Y.
Stockholders of the Fordham National Bank of this city
at a special meeting on Oct. 26 ratified plans to increase the
capital of the institution from $250,000 to $500,000. The
new stock will be offered to present stockholders at $210 a
share in the ratio of one new share for each one held. Warrants were mailed to stockholders of record as of the close
of business, Oct. 25. Payment will have to be made in
cash on or before 3 p. m., Nov. 15.
J. Tyler Watts, Trustee and formerly Treasurer of the
Jamaica Savings Bank for the 54 years died on Oct. 22 at
his summer home in Bayville, L. I. Mr. Watts was 86
years of age.
William H. French, formerly of Mt. Sterling, Ky., was
on Nov. 1 made Assistant Cashier of the Chemical National
with
Bank of New York. Mr. French has been connected
For ten
years.
nine
for
nt
Departme
its
Bond
in
bank
the
of
years he was employed by the Capital Trust Company
Frankfort, Ky.
Gaillard B. Smith has been elected Assistant Vice-Presi
charge
dent of the Nassau National Bank, Brooklyn, to take
of the bank's newly-organized investment department.
PresPhillip G. Bartlett and Colonel Benjamin F. Castle,
promand
Trust
nt
Investme
Foreign
ident, First Federal
inent in the aircraft industry, have been elected directors
Hill,
Of the Richmond Hill National Bank of Richmond
Long Island.
•-Frederick McDonald, heretofore a Vice-President of the
[VoL. 127.
missioner says. The depositors number 1,700. The State has $65,000
bonds belonging to the bank, a deposit guarantee usually made by banks.
•
According to information received by Bank Commissioner Hovey, Saporito
to
left for Washington several days ago intending to begin negotiations
have his bank taken over as a National bank. The failure of the negotiations, and threats against his life, in the opinion of Mr. Hovey, caused
Saporito to vanish and take his family with him.
The proposed merger of the Oxford Bank & Trust Co.
of Philadelphia with the Corn Exchange National Bank &
Trust Co. of that city, under the title of the latter, became
effective on Wednesday of this week, Nov. 1, according to
the Philadelphia "Ledger" of that date. Stockholders of
the enlarged bank will receive one share of stock no par
value of the Corn Exchange Corporation for each share of
bank stock owned. The shares of the bank and of the
Corn Exchange Corporation will not be salable separately,
It was stated. The consolidated bank has seven offices at
the following locations: Chestnut and 2nd Streets, 1510-12
Chestnut Street, Frankford and Oxford Avenues, 5906
Torresdale Avenue, Cottman Street and Rising Sun Avenue,
Kirkbridge; Ash and Thompson Streets, and 2316 Orthodox
Street. Charles S. Calwell continues as President of the
enlarged Corn Exchange National Bank & Trust Co., while
B. E. Effing (formerly President of the Oxford Bank &
Trust Co.) is a Vice-President in charge of the company's
offices in Northeast Philadelphia with headquarters at the
Oxford branch. Other active officers of the former Oxford
Bank & Trust Co., it is understood, are officers of the new
Institution, and the former directors of the absorbed bank
are retained as an advisory board for business in Northeast
Philadelphia. The new institution has total resources, it is
understood, of approximately $95,000,000. The "Ledger"
gave a brief history of the Corn Exchange bank as follows:
Organized as a State institution on August 20, 1858, with $131,691
capital, the Corn Exchange became a National institution on August 20,
1864, when its capital had been increased to $500,000. During the Civil
War the bank loaned its entire capital to the Union Government. In
June of this year the words "and trust company" were added to its title.
The Corn Exchange National Bank merger in 1926 with the Third National Bank, and in 1922 it was consolidated with the Rittenhouse Trust
Company.
New York State National Bank, Albany, N. Y., assumed
Our last reference to the proposeed consolidation of these
the Presidency of the insitution on Oct. 31 upon the retiren
institutio
the
of
President
Jr.,
ns appeared in the "Chronicle" of Oct. 6, page 1901.
Gogswell,
institutio
Ledyard
of
ment
sines 1922.
The Directors of the Tradesmens National Bank and
George E.Pierce, Vice-President of the National Shawmut Trust Company of Philadelphia have declared a dividend
Bank of Boston sailed on Wednesday, Oct.31,on the "Berea- payable Nov. 1 1928 of $2.50 per share to registered holders
garia," for an extended business trip abroad. Besides Great at the close of business Oct.30 1928, of Full Paid Temporary
Britain, he will visit France, Belgium, Germany, Austria Receipts issued by Drexel & Company under the Deposit
and Hungary. On the part of the trip, he will be accom- Agreement dated July 25 1928.
panied by Max F. Roesti, Assistant Vice-President of the
Shawmut Bank who is the bank's foreign representative and
At the opening of the new North City Trust Co. of Philawho makes his headquarters in Paris.
delphia last week an unusual feature was the making of each
4--depositor a charter depositor by using special charter deposit
The closing on Monday, Oct. 29, by State Bank Commis- slips, according to the Philadelphia "Ledger" of Oct. 26.
private
sioner Hovey of the First Bankers Union, Inc., a
Deposits on the opening day aggregated $224,000, a greater
Italian bank at 333 Hanover Street, Boston, following a sum, it is said, than any new bank which has opened in the
the
in
four-hour "run" on the institution, was reported
history of North Philadelphia. The "Ledger" furthermore
Boston "Herald" of Oct. 30. The following notice, signed stated that the new bank (now located at the corner of Broad
by Commissioner Hovey, was placed on the doors:
and Chew Streets) will later occupy quarters in a fifteen-story
"Under authority vested in me by law, I hereby take possession of the building to be erected on the West side of Broad Street, exproperty and business of the First Bankers Union, Inc."
tending from Olney Avenue to Chew Street,
Scarcely had the bank closed, the paper mentioned said,
Richard E. Hanson, Assistant to the President of the
than Mr. Hovey petitioned for a receivership. Judge E. P.
Pierce of the Supreme Court appointed Guy L. Vaughan Pennsylvania Company for Insurance on Lives & Granting
receiver under a bond of $25,000, and enjoined the officers, Annuities, Philadelphia, on Oct. 27 was elected a director
directors, stockholders and creditors from interfering with of the Lancaster Title & Trust Co. of that city.
the affairs of the bank. An injunction was also obtained
restraining the company from doing business. The President and Treasurer of the bank, Louis Saporito, also known
as Luigi Saprito, of 30 Wolcott Street, Medford, the
"Herald" said, disappeared more than a fortnight previous
to the closing, a 2ew days after his wife, Mrs. Michelina
Saporito, "went for 'a trip to New Jersey' with her five
children. It was said that the bank President left because
of threats upon his life." Continuing the Boston paper
said, in part:
end milled about the
All day yesterday (Oct. 29) Italians of the North
and Prince streets. Police
outside of the bank, which is located at Hanover
an irate depositor threatwere called when, during the height of the run,
of the institution.
ened death to Florenzo Cardulicco of Dorchester, cashier
• •
night (Oct.
Bank Commissioner Hovey was informed late last Saturday
to have
27) of the perilous condition of the bank. An attempt was made
but while
another bank take over the affairs of the First Bankers Union,
this was being made the "run" developed. Thereupon Mr. Hovey stepped
in and closed the bank. . .
The capital and resources of the bank total $400,000 (a sign on the
bank window says), but the deposits are about $200,000, the bank com-
•
Stanley G. Flagg was elected a director of the Provident
Trust Co.of Philadelpnia to succeed the late J.Barton Townsend at a regular meeting of the Board of Directors of the
institution on Oct. 25.
Walter B. McKinney, Assistant to the President of the
Southern Steamship Co., has been elected a director of the
City National Bank & Trust Co. of Philadelphia.
According to the Washington (D. C.) "Post" of Oct. 27
the Citizens' Bank of Riverdale, has been organized in Maryland and will open for business on the Baltimore Pike at
Madison Ave. on Nov. 15. The capital at $25,000 with
surplus of like amount and the bank is intended to serve the
following places: Riverdale, East Riverdale, University
Park, College Heights, College Park, Lakeland, Berwyn,
Berwyn Heights, Branchville, Daniels Park, Hollywood and
Beltsville. William P. Magruder, Vice-President of the
First National Bank of Hyattsville, Md., is Chairman of
Nov. 3 1928.]
FINANCIAL CHRONICLE
the Board of Directors of the new bank, and C. A. M. Wells
is President. Other officers include Harry C. Byrd, VicePresident of the University of Maryland, First Vice-President; Dr. S. M. McMillan, Second Vice-President; E. W.
Reibetanz, President of the Riverdale Park Co., Third VicePresident, and G. Sherman James, for twenty years connected with the National Bank of Washington,Washington,
D. C., Cashier. The First National Bank of Hyattsville
has been designated clearing agent, the "Post" said.
Frank F. Brooks, for the past fourteen years Senior VicePresident of the First National Bank at Pittsburgh, Pittsburgh, Pa., was elected President of the institution to
succeed the late Lawrence E. Sands at a meeting of the
directors on Oct. 30, as reported in the Pittsburgh "Post
Gazette" of the following day. Clyde C. Taylor, also
associated with the bank for fourteen years, was elected
Senior Vice-President and Cashier. P. W. Morgan, a new
addition to the bank's official staff was made Vice-Chairman
of the Board of Directors. Mr. Morgan is also President
• of the East Pittsburgh Savings & Trust Co. and of the First
National Bank at Wilmerding, Pa. The directors furthermore named Henry K. Holmes as Assistant to the President.
Mr. Holmes has been special representative of the bank
for six years. Other members of the bank's roster are as
follows: Robert Wardrop, Chairman of the Board of Directors; J. Howard Arthur, Vice-President, and Oscar Wilson,
T. B. Hudson, John DeM. Werts, W. H. Fawcett and
G. C. Orr, Assistant Cashiers. Mr. Brooks, the new
President, the paper mentioned said, since his graduation
from Yale University in 1896, he has devoted his entire time
to banking in Pittsburgh territory. He is on the directorate
of several other banks and industrial corporation in the
district.
An Associated Press dispatch from Huntington, W. Va.,
on Oct. 26, printed in the Baltimore "Sun" of the following
day, reported the closing on that date of the Coal Exchange
Bank of Huntington, an .nstitution organized last December
to take over the assets of the defunct American Bank &
Trust Co. The bank was closed, it was stated, by order
of its directors and its affairs turned over to the State Banking Department for liquidation. The institution was capitalized at $200,000 with surplus of $50,000, the dispatch went
on to say, and had total resources of $633,000 and deposits
of approximately $327,000.
2459
Charles H. McNider, Western banker and cement manufacturer, died suddenly of heart disease in his office in
Mason City,Iowa,on Oct.30. Mr.McNider was a director
of the Federal Reserve Bank of Chicago, President of the
First National Bank of Mason City, President of the Northwestern States Portland Cement Co. and a director in several
other concerns. He was born in Dubuque, Iowa, in 1860.
When fifteen years of age he entered the employ of the
Cerro Gordo State Bank of Mason City, later the First
National, and progressed so rapidly that at the age of twentyone he was made Assistant Cashier of the institution. Ten
years later he was President. A dispatch from Mason City
on Oct.30 to the New York "Herald-Tribune" reporting Mr.
McNider's death contained the following:
Mr. McNider took an active part in banking associations and in his early
thirties was president of the Iowa State organization. For six years he was
a member of the executive council of the American Bankers' Association.
With the establishment of the Federal Reserve system he was chosen a
director of the Federal Reserve Bank of Chicago.
In this position he was prominent in the fight in 1927 against efforts of
the Federal Reserve Board to dictate lower discount rates in Iowa. Illinois
and other states.
Mt. McNider was twice a delegate to Republican National Conventions.
During the war he was made director for Iowa of the Third and Fourth
Liberty and Victory loans. He was a thirty-third degree Mason and held
prominent offices in the Knights Templar. When the cement industry
started in Mason City in 1907 he became interested in the enterprise and
headed the larger of two factories established. the Northwestern States
Portland Cement Company.
A consolidation of the People's Savings Bank of Des
Moines, Iowa, with the Bankers' Trust Co. of that city was
consummated on Oct. 31. The new institution, which
continues the name of the Bankers' Trust Co., is capitalized
at $1,000,000 and has total resources of more than $9,000,000. In reporting the matter in its issue of Oct. 31,
the Des Moines "Register" quoted B.'F. Kauffman, President of the Bankers' Trust Co. as saying:
"The merger of the interests of the Peoples Savings bank with Bankers
Trust company is in line with the general trend of business and has been
consummated with the assurance that an-improved service can be rendered
both to the customers of the Peoples Savings bank as well as to the
customers of the Bankers Trust company."
In addition to Mr. Kauffman, who continues as President
of the enlarged bank, the officers are Charles H. Martin
(heretofore President of the People's Savings Bank), B. B.
Vorse, L. B. Bartholomew, and A. E. Slininger, Vice-Pros dents; C. H. Stephenson, Cashier; S. C. Pidgeon, Secretary;
Carl W. Mesmer, Assistant Vice-President and E. R. Millard, Assistant Cashier. On Oct. 3, the date of the last
State bank call, the "Register" said, the Bankers Trust
The following news item has been received this week Co. showed capital stock of $1,000,000, combined surplus
and undivided profits of $255,252; deposits of $5,188,977,
from the Union Trust Co. of Cleveland:
The contract for the erection of new quarters for the Terminal Office and total resources of $6,532,892, while the Peoples Savings
of The Union Trust Company, Cleveland, to replace the temporary quarters Bank showed Capital of $200,000; combined surplus and
In the Hotel Cleveland, has been awarded to the Aaronberg-Fried Company undivided profits of $208,669; deposits of $2,953,253, and
af Cleveland, officials of The Union Trust Company announced Wednesday.
total resources of $3,293,923.
The main entrance to the
banking quarters will be through the foyer of
the Terminal Building, with the office itself on the Public Square level.
One of the unusual features of this new office is that it will afford a
direct passageway from the Public Square directly through to the Terminal
Garage and to the Medical Building (part of the proposed Union Depot
group) as well as to Prospect Avenue, where a separate entrance to the
bank will be maintained. It is estimated that close to 25,000 people will
pass through the new office every day in availing themselves of this arcade.
The quarters of this newest office will be spacious as well as beautiful,
the main banking room occupying 6,825 square feet of space. The marbles
to be used in the walls and ceiling have been selected for their particularly
attractive combination of colors.
The office of the manager, Assistant Vice President J. 0. Armstrong,
Is to be on the main floor where it will be readily accessible to the public.
There will be 25 tellers' cages—of marble and bronze—on the main
floor,
and on the mezzanine which will extend around all sides of the main
banking room there will be ample provision for additional ages. Here,
too, will be the safe deposit vaults, to be installed by the Diebold
Safe k
Lock Company. The main vault, to be heavily lined, will have a
circular
door 18 inches thick and weighing 24 tons. It will be fully
equipped
with burglar alarms and a special signal system for the bank guards.
Graham, Anderson, Probst & White of Chicago, designers of the
Union
Trust Building at Euclid and East Ninth, as well as the Terminal
Building
Itself, are the architects.
The new office will be ready for occupancy about the first of
May and
according to Vice President Allard Smith, will be a complete
banking unit
In itself, with all of the services that the Main Office has to offer.
J. Albert Smith, for the past 19 years a Vice-President
and Trust Officer of the Fidelity Trust Co. of Indianapolis,
died on Oct. 28 after a long illness. Mr. Smith was 46
years of age. In 1909 he resigned as Manager of the Reliable Furniture Co. to assist in the organization of the
Fidelity Trust Co., becoming Vice-President and Trust
Officer, the positions he held at his death. Among other
Interests, he was Secretary-Treasurer of the Emerson
Heights Realty Co., Vice-President of. the L. M. Brown Abstract Co., and a director of the Provident Building & Loan
Association.
A dispatch from Los Angeles on Oct. 29, appearing in the
"Wall Street News" of the same date, stated that G. H.
Wadleigh, for the past four years President of the Fidelity
Savings & Loan Association of Los Angeles, was recently
elected Chairman of the Board, while L. J. Christopher, for
the past 25 years Vice-President and a director, was made
President. The Fidelity Savings & Loan Association is
the oldest company of its kind on the Pacific Coast, it was
said.
Ira T. Walker, for several years past a Vice-President of
the Lumbermens Trust Co. of Portland, Ore., recently announced his resignation from that institution and the incorporation of the firm of Ira T. Walker & Co. for dealing in
bonds and investment securities, with offices in the Porter
Building, Portland. Concerning the matter, the Portland
"Oregonian" of Oct. 22 said:
For nearly a score of years Walker has been identified with financial
affairs in Portland,first with the old Lumbermens National Bank and later
with the Lumbermens Trust Company. His work of late years has been
confined largely to originating new bond Issues and more recently his
activity in the merging and grouping together ot banks.
Full confidence in the future of the Northwest and their own banking
Interests have influenced Mr. Walker and his associates to organize the
new company for dealing in bonds and investment securities.
The directors of the Provincial Bank of Canada (head
office Montreal) recently elected Joseph Sirois, notary of
Quebec, a director in lieu of Hon. N. Garneau, M.L.C.,
resigned, according to the Montreal "Gazette" of Oct. 27,
which went on to say:
Mr. Sirois is head of the notarial firm of Sirois & Weis, one of the most
important In the city of Quebec. He is also editor of "La Revue du Notariat." professor at Laval University, Quebec, member of the board of
directors of the Administration and Trust Company, of Montreal. and
president of the board of notaries of the Province of Quebec.
FINANCIAL CHRONICLE
2460
[VOL. 127.
17TH ANNUAL CONVENTION
Investment Bankers Association of America
HELD AT ATLANTIC CITY, N. J., OCTOBER 14 TO 19 1928
INDEX TO REPORTS AND PROCEEDINGS.
Page.
Hayes____2460
Annual Address of President of Association, Henry R.
2462
Report of Railroad Securities Committee
2463
Report of Public Service Securities Committee
2466
Report of Municipal Securities Committee
2466
Report of Committee on Investment Trends
2467
Report of Investment [Trusts] Companies' Committee
2468
Report of Securities Division of Legislation Committee
2469
Report of Foreign Securities Committee
2470
Report of Legislation Committee
2472
Report of Government and Farm Loan Bonds Committee
2472
Report of Irrigation Securities Committee
2473
Report of Industrial Securities Committee
2474
Report of Real Estate Securities Committee
Annual Address of President of Association Henry
R. Hayes—Urges Inquiry into Cause and Effect of
Credit Conditions.
The responsibility of the investment banking business
to do all in its power "to stabilize the supply and demand
a
of money just as the credit policy of banking has as
prime purpose the stability of commodity price levels,"
was urged by Henry R. Hayes, Vice-President of Stone &
Webster and Blodget, Inc., in his address as President of the
Investment Bankers' Association of America, at the opening session of the annual convention of the Association at
Atlantic City, N. J., on Oct. 16. President Hayes in the
concluding portion of his address entered upon a review of
the money market, In the course of which he said:
was
In the fall of 1927 conditions were so favorable that our business
to August
started on a basis of quantity production. From February 1928
of the
1928, owing essentially to the export of gold and the reduction
rates of
Bank's portfolio through open market operations, the discount
of most of the Reserve Banks increased, in stages, to 5%. Accompanying
In
this tightening of money there were large increases in brokers' loans.
our
a comparatively short time these conditions had the effect of forcing
new
business into rapid curtailment, as will be observed by the fact that
1928,
domestic capital issues rose to a high of over $800,000,000 in April
and fell to a low of a little over $200,000,000 in August 1928.
He also referred to the rise in brokers' loans from $3,674,000,000 on Aug. 31 1927 to $5,051,000,000 on Aug. 31 1928.
These conditions were reviewed, he said, "to point out publicly that our business . . . should take an active part
in a sound solution of the credit problems confronting our
domestic and foreign conditions." He added:
It will not be adequate for us to become more alert in our interpretation
should
of economic conditions as they affect our business. Clearly, that we
do. We should go even further. Any form of regulation of the volume
of credit and therefore of price, as we have experienced this year, has such
an intimate relation with the volume and price of the securities we handle
existthat we should initiate studies inquiring into the cause and effect of
busiing credit conditions and their bearing on the investment banking
ness. Especially does this seem essential if we are likely to be subjected in
the future to wide fluctuations similar to those recently experienced.
President Hayes' address follows:
Convention here
We are assembled this year for our Seventeenth Annual
80% of our membership.
at Atlantic City, within easy access of well over
of the leading
full
attendance
This city was chosen that we might obtain
essential for the
executives of member organizations That condition is
securities
proper consideration of important problems of merchandising
with which we are now especially concerned.
administraAt such a time it is the appropriate custom for the outgoing
carried over from
tion to report to you the progress attained on activities
and
and
the
disposition
events
the preceding year as well as the important
year.
status of new matters presented during the current
essentials from that of many
This present accounting will not vary in its
years, except to the extent of
reports made previously in non-legislative
year. I refer particularly
the new internal problems actively before us this
methods prevalent in our
to the need of correcting certain merchandising
business.
in a general way in this
All htis information will be presented to you
reports. From the latter
message but in greater detail in the committee
high quality of work volyou will derive adequate proof of the continued
not believe too much comuntarily contributed by the membership. I do
work.
mendation can be given to this service of fruitful
Internal Affairs.
to report. ImAs to the Organization: I have several pleasing matters the Board of
mediately after the adjournment of the Seattle Convention
authority reGovernors had a special meeting. Pursuant to legislative
created the
ceived by amendments to the Constitution and By-Laws, which
office of Executive Vice-President and eliminated the office of Executive
Board of
the
know,
you
Secretary then held by Mr. Alden FL Little, as
Page.
2476
Report of Taxation Committee
2478
Report of Education Committee
2479
Report of Publications Committee
2479
Report of Sub-Committee on Coat Accounting
2479
Resolution of I. B. A. on Death of Governor Strong
2479
Report of Business Conduct Committee
2481
Report of Bond and Note Nomenclature Committee
2482
Report of Interim Receipts Committee
2482
Report of Committee on Constitution and By-Laws
2483
Report of Membership Committee
Death of
Resolution of Investment Bankers Association• on
2484
Chanute
Octave
W.
2484
Officers
Election of
Vice-President. We
Governors thereupon elected Mr. Little Executive
of the Association where
have come to the point of development in the work
essential to the Interests
the creation of that office is not only timely but
authority must
of all members. For an indefinite time it seems to me more
consulting service
be placed in the Executive Vice-President and more
the Groups,
officers,
other
must be given by that officer to the President,
be the case if we
the Committees, and individual members. Such must
our work
are to progress with continuity of purpose and no lag in all
new is
each year. After each convention a personnel almost entirely
for volappointed to that large part of the organizations which calls
Executive
as
untary service. I am very happy to report that Mr. Little
Vice-President has been untiring in his efforts and done very effective
work.
Mr. Schray was elected Secretary of the Association immediately after
the Seattle Convention, lie has now served us for 16 years and continues
to do fine work.
Our work as carried on with the Securities Commissioners through
Mr. Davis is of great benefit to the membership and I believe is developing the proper relationship and understanding with -the Commissioners
which should exist between us in the interests of so-called "Blue Sky"
and Fraud security legislation.
The Educational Department under the direction of Mr. Samuel 0. Rice
continues to be efficiently handled. Constantly there emanates from
the department sound doctrine in pleasing style and of incalculable benefit
to our business of investment banking. New investors are created and
much missionary work is being done among the vast number of people
in this country who are financially illiterate. That department has been
built upon a sound foundation. Co-operating, as it does, with the Better
Business Bureaus and the Financial Advertisers as well as with the newspapers and other publications, it is capable of wise expansion. I would
not be frank, however, did I not say that such expansion in my opinion
should not take place until the membership of this Association practically
discards certain doubtful merchandising practices which are not in the
interests of our clients—the investors—and until we, in our individual performances as issuers and distributors of securities, are more alert to the
business necessity of complete adherence to all principles and practices as
defined by the Association from time to time. We cannot make the progress
desired and continue to hold public esteem unless we conduct our own
businesses in a manner aboev criticism from within or from without the
Association. In speaking thus frankly I do not desire to be misunderstood.
I have the highest regard for the investment banking business in this
country. Its standards have steadily improved. It has had, as we well
know, a rapid growth. The volume of business is huge. We have enjoyed some very active markets. The business has never been more highly
competitive. These factors in themselves have brought conditions not to
our own liking. That is why we have undertaken to study and correct
our own shortcomings and in this direction we have made a good start.
In due time, I am convinced, we shall complete the work still undone.
As and when that time comes, I believe the work of the Educational Department can be greatly expanded to the benefit of every member of the
Association.
Association Finances.
We are in sound financial condition but an examination of our operations during the past fiscal year, ending on Aug. 31 1928, will disclose that
the dues were .inadequate to meet current operating expenses. Accordingly,
it was necessary this year to again apply receipts from membership fees
for current expenses.
Therefore the new basis for dues inaugurated at the beginning of the
fiscal year 1927-28 should be changed if we are to continue the wise
policy of meeting expenses 'from annual dues. Membership fees should
be applied to capital account and thus slowly build up that account for future extraordinary needs.
After very careful consideration, your Board of Governors has recently
recommended to you through suggested amendments to the Constitution and
By-Laws a uniform rate of dues for all members, plus compulsory registration of certain branch offices; such offices to pay moderate service
charges. It would seem to be equitable that such branch offices should
carry some of the financial burden. It is recommended that the amount
of such annual service charges not be made a fixed amount in the hope
that it will be small and subject to moderate variation to balance our
yearly budgets.
By pursuing the financial policies outlined, I believe we will not unduly
tax any class of membership and will maintain a conservative course.
A new committee consisting of the Chairman of each Group was constituted this year with the approval of the Board of Governors. The
Nov. 3 1928.]
first meeting of that committee was held at White Sulphur Springs in
May 1928. I consider that that meeting inaugurated procedure which will
prove of much benefit to the Association and its members. A free and
frank discussion of our business such as we had this year by representative men from all sections of the country certainly confirmed the desirability of continuing that committee organization. We are indebted
to our Vice-President, Mr. Arthur H. Gilbert, for the constructive suggestion that such a meeting be held.
There will be submitted, in accordance with the official notice of the
meeting, some amendments to the by-laws. Some of them which have to
do with committees and dues need some elaboration.
New Committee—Industrial Service Securities Committee.
The scope of work heretofore assigned to the supervision of the Industrial
Securities has been so broad that it has been, as a practical matter, impossible adequately to staff that committee. Consequently in order to obtain further specialization it is deemed advisable to create another committee to be known as "Industrial Service Securities Committee." To that
committee the Board has decided to refer industrial companies engaged
in oil, natural gas, toll bridge, lee and coal businesses.
Investment Companies.
Companies doing an investment business, erroneously called "Investment
trusts," present intricate problems. A segregation of these problems clearly
discloses that many of them have to do with ability and honesty of
management. We all know well that business probity cannot be obtained
by legislative fiat.
For the Association, the Board of Governors, Jan. 21 1928 enunciated a
principle:
"Rest:geed. 'That the Board of Governors of the Investment Bankers Association
of America, while approving in principle any sound effort to Protect the investor
from the sale of investment trust securities of a doubtful nature, has not been able
to convince itself that there Is a legislative panacea that will assure sound management essential to the success of any investment trust.
"That, therefore, it Is the sense of the Board of Governors that any legislation of
the Blue Sky type would prove of questionable efficiency and that Fraud Acts with
broad powers of investigation are probably the best means of accomplishing this
Protection, If properly administered."
There are the so-called "fixed investment" companies the holdings or
portfolios of which do not change. There are the investment companies
which own selected lists of securities, which are changed only occasionally.
Then again there are many the investment of which change frequently
with the market and therefore trade actively. In the latter, like the markets, policies, of investment may change rapidly. We can readily see,
especially in the latter companies, one must be informed periodically and
in reasonable detail to be able to judge adequately of at least the ability
and character of management.
Precisely what information should be disclosed is an important problem. It is that problem especially with which your committee has struggled this year. Very probably, progress will be reported at this convention;
if so, it will lead to the further much needed protection of investors.
Obviously the one thing above all, is to permit honestly managed companies to exist in such a way as not to restrict their investment policies.
So likewise in the public interest is it advisable to bring to light the
companies promoted for selfish aggrandizement at the sacrifice of the
real interest of investors.
Conflict with National Interests—A Definition of Policy.
There is a matter of operating policy as an organization that I desire
to call to your attention. This year, regretfully, we had occasion to observe that the membership of one State failed to report to its group until
near the close of the State legislature some important pending legislation.
That report was too late for adequate attention by the group and by the
Naional Association. That pending legislation was not in conformity with
declared principles of the National Association and was against the nterests
of members residing outside of the State. The National Association should
have been given the opportunity first to consult with the local members
and to endeavor, in the general national interests of the business, to persuade the local membership that the views of the National Association
were paramount.
This subject has had the consideration of the Board of Governors and
I am directed to express the following views:
Where,in the opinion of the Board of Governors or in an emergency In the opinion
of the Executive Officers, national interests of the Association are in conflict with
local interests, the natibnal interests obviously must be deemed to be paramount.
Therefore, the Executive Officers are charged with the responsibility of determining
the extent to whichlthe1National Association shall enter publicly or privately into a
local situation.
razatitm.
It is not necessary to point out in detail the extent to which State
their
political subdivisions have failed to follow the
governments and
policy and practices of the Federal Government in the reduction of taxes.
State and other local taxes have increased to an alarming extent beyond the
dictates of wise expenditure for increased services. That condition is
bound to have an insidious and adverse effect on local prosperity—a
matter of vital concern to investment bankers. One of our chief interests
is a maintenance of prosperity. With lack of prosperity we are in want
of business and our service of manufacturing, as it were, sound securities
and merchandising them is greatly curtailed. Taxes sap up savings. We
are concerned in the conservation of savings. Furthermore, State and
local taxes are so varied, unequal and burdensome to legitimate large and
small businesses that they in effect establish tariff barriers in interstate business. This I had occasion in more detail to point out publicly
this year in an address before the Finance Section of the Chamber of
Commerce of the United States.
Members of our Association in their local districts can perform constructive service in the study and correction of State and local tax evils.
That service is one which we should assume. Our training fits us to furnish expert work. To the end that we can more definitely organize for
such work your Board of Governors recommends that a new committee
be provided to deal with the subject of State and local taxes.
That will leave the present Taxation Committee charged with the subject
only of Federal Taxes. This Committee has, I believe, been very helpful
in this general subject of Federal Taxation.
I want to point out that it has been beyond the power of that Committee and its predecessors to obtain any reduction in and much less an
elimination of the tax on capital gains and losses. It has frequently
been pointed out that such a tax is unscientific and economically unsound. It has been stated to me by authorities on income taxes and by
business organizations that our method of collection of taxes prevents defining by law a statute which could do away with that tax. That may be
so but I believe that this Association should satisfy itself on that point. In
two years, presumably, we shall be considering a new national income
tax law. I therefore recommend that the incoming Committee on Federal
Taxation undertake a detailed study of this subject.
2461
FINANCIAL CHRONICLE
Public Utilities.
Early in this administrative year I had occasion to state to the Committee on Inter-State Commerce of the United States Senate the views
of this Association, with special reference to the resolution introduced
by Senator Walsh of Montana for an investigation of public utility business.
Primarily we were solicitous of having a clear fact finding investigation
of the industry as a whole and not one confined to a few specific phases
of the business. The Senate, as you know, authorized that such an Investigation be conducted by the Federal Trade Commission.
We believe in the fundamental soundness of the theory of State regulation which has been such an important factor in its development and
rapid growth. In many ways there is an attack -directed against that
form of regulation. The Association has repeatedly urged broad and more
uniform State regulatory laws, liberally supported by legislatures. If
there has been ineffectiveness in State regulation, it is due primarily
to the inadequate powers vested in the commissioners and the inadequate
appropriations voted by the legislatures. The commissioners on Uniform
State Laws this summer approved of a uniform State public utility commission law. That was carefully studied for several years by this Association and in its present form meets with its approval. Let us actively
urge its adoption.
It is trite to point out to you that the industry has never enjoyed
better credit and that State regulation has been an imporant factor in
bringing the public utilities to this happy condition. We are ready, therefore, to oppose all efforts to break down State-wide regulation of the
business and defend all sound financial operations for which we have
been responsible. All this we shall do with no decrease in the exercise
of our independence of judgment. In the past we have not hesitated as
an organization to differ with management, public authorities and others.
There is no reason to change that policy.
Foreign Securities.
Throughout the administrative year foreign investments have continued
to expand rapidly. In fact, for the first half of this year the volume of
our foreign investments reached a high mark for all time in the amount
of $839,300,000 of public offerings as contrasted with $716,600,000 for the
same period of 1927 and $512,467,850 for the similar period of 1926.
The United States still continues to be the largest single lender In the
International money market. However, other nations have been making
rapid strides. The London money market has regained much of its prewar importance and even France, since its rapid economic and financial
recovery, is to-day an important lender, particularly of short-term funds.
While this, recovery of other money markets tends to increase competition
for us, it will have a beneficial effect in that it will lead to a more truly
international distribution of foreign securities.
Another noteworthy change in foreign investments has been the increase in corporate loans as against Government loans. Whereas the volume of Government issues in 1927 amounted to $917,000,000 as against
$676,000,000 of corporate issues, for the first half of 1928 the Government issues amounted to $429,000,000 and corporate issues almost equaled
it with $413,000,000. It would therefore seem that with the stabilization of currencies and the balancing of budgets, Government financing
will decline and corporate financing will increase. It will, therefore, be
necessary for American bankers to widen their knowledge of foreign corporate finance to meet these new conditions. There is every assurance
that they will meet this necessity of adequate corporate credit study
just the same as they have faced the task of analyzing public credit in
the past.
Federal Aid.
In the matter of security regulation we have come to a time when
your Committee on Legislation, the Executive Officers and the Board of
Governors definitely see the immediate need of more Federal assistance.
This Association, from its inception, has given its full and hearty support to all sound legislation and other means designed to curtail the
operations of the security crook and faker and thus reduce the traffic in
fraudulent and worthless securities. Our members have assisted in the
organization and annual support throughout the country of the Better
Business Bureaus. Through the Legislation Committee and other agencies
we have been actively in support of sound legislation in our various States
for the regulation of security issues. All this work has been in our own
interests to conserve savings—capital for sound governmental and business enterprise. We have acquired an expert knowledge in this business
of security regulation. We desire to progress and improve existing State
statutes and the application of them to our business. There is much to be
done along these lines that legitimate business may not be hampered.
More than this we find that the States in the exercise of their authority
in regulation are powerless to properly protect the public in the interState traffic of fraudulent security schemes.
Your Field Secretary had occasion last December to present well-considered views of the Association to the Federal Trade Commission in connection with its investigation of security regulation by the States and
the need for Federal legislation.
The Association then expressed the view that no Federal legislation of
the Fraud or so-called "Blue Sky" type was necessary but there was
needed more complete enforcement of existing statutes.
Pursuant to that belief, in company wirth former Presidents Messrs.
George W. Hodges and Roy C. Osgood, and our Committee Counsel, Mr.
Paul V. Keyser, I presented to the Postmaster General a statement of
the existing unsatisfactory conditions and recommended that the budget
of the Post Office Department be increased by $500,000 to provide funds
to finance an increase in the force of inspectors and other personnel of the
Department to adequately care for existing needs. In my opinion this
appropriation will not be obtained unless there is a better public understanding of the need for it.
We believe this subject to be of public concern and we propose as a
supplement of our recommendation to the Post Office Department to keep
the public posted of the facts. In this way we hope to obtain this appropriation and obtain action at the next session of Congress.
The Postmaster General has power to issue stop orders forbidding delivery of mail or payment of money orders to anyone found by him to be
using the mails for fraudulent schemes, but at present criminal prosecutions rather than stop fraud orders are sought because of lack of time
and personnel to make required investigations. Consequently, it is believed that a larger staff could under the existing law expedite either preventative action through obtaining fraud orders or punitive action through
criminal prosecution as the public interest demands.
We desire to get quick action to the end that if any security sale
schemes are fraudulent, they may be stopped before large public losses
have occurred. Such a plan is capable of much variation and would be
improved by experience.
2462
FINANCIAL CHRONICLE
We hold that the expenditure each year of $500,000 by the Federal
Government would annually prevent the swindling of millions of hardearned savings. Since savings largely come by dint of hard work and
thrift, the people of this country are entitled to better protection than
they are now receiving. This is especially so when we consider that the
annual loss through the traffic in fraudulent and worthless securities runs
well into the hundreds of millions of dollars.
In our campaign for this appropraition an important special communication has been sent to the Groups.
The Mosey Market.
Throughout the greater part of this administrative year from September
1927 to June 1928 we enjoyed exceedingly good markets for investment
securities. However, domestic bonds reached a high point early In
May 1928 and a low point in August 1928, a loss of over four points on
the average (New York "Times" index). In June, 1928, our bond market began to rapidly disappear. By summer we had no market and our
Inventories were in a measure "frozen." These facts are well-known to
us all, and only too well do we appreciate the losses incurred not alone
by ourselves but by conservative investors in high-grade securities, since
these are most sensitive to changes in money rates.
Let us further examine other facts. In the summer of 1927 the Federal Reserve Banks lowered their discount rate to 31
/
2%. Having lowered
the rate of the Federal Reserve Bank the market operations of the Bank
through the purchase of Government obligations and acceptances created
a 3/
1
2% money market. This easing of money naturally caused a rise in
bond prices, thus reducing our inventories and also speeding up the emission of new issues. In the fall of 1927 conditions were so favorable that
our business was started on a basis of quantity production. From February
1928 to August 1928, owing essentially to the export of gold and the
reduction of the Bank's portfolio through open market operations, t,he
discount rates of most of the Reserve Banks increased, in stages, to 5%.
Accompanying this tightening of money there were large increases in
brokers loans. In a comparatively short time these conditions had the
effect of forcing our business into rapid curtailment, as will be observed
by the fact that new domestic capital issues rose to a high of over $800,000,000 in April 1928 and fell to a low of a little over $200,000,000 In
August 1928.
It seems to be now generally accepted in many circles that the cheap
money market created in the summer of 1927 may have been a wise
course in the interest of agriculture and other businesses as well as the
stability of foreign currencies even at the expense, subsequently, of a
contraction of our credit base through the export of some $600,000,000
of gold. Despite that contraction Federal Reserve credit was not wholly
used for the purposes designed as an aid to business, but an increased
amount of credit was diverted to speculative purposes in the stock market.
This is shown by the fact that brokers' loans rose from $3,674,000,000 on
Aug. 31 1927 to $5,051,000,000 on Aug. 31 1928.
All these conditions with respect to the investment banking business and
the money markets are facts well known. They are reviewed now to point
out publicly that our business—organized investment banking—in the
interests of the investing public and the essential service which we render
should take an active part in a sound solution of the credit problems confronting our domestic and foreign conditions. It will not be adequate
for us to become more alert in our interpretation of economic conditions
as they affect our business. Clearly, that we should do. We should go
even further. Any form of regulation of the volume of credit and therefore of price, as we have experienced this year, has such an intimate relation with the volume and prices of the securities we handle that we
should initiate studies inquiring into the cause and effect of existing credit
conditions and their bearing on the investment banking business. Especially
does this seem essential if we are likely to be subjected in the future to
wide fluctuations similar to those recently experienced.
It is an obvious responsibility of this business as a whole, not alone
for reasons of self interest, but what is more important, in the interests of
both the investor in and of the general issuer of securities, to do all in
our power to stabilize the supply and demand of money just as the credit
policy of banking has as a prime purpose the stability of commodity price
levels. If the cost of long-term money is permitted to fluctuate too violently, when too low, the investor is penalized and the issuer is tempted
to sell beyond his needs. Countrarywise, when the cost is too high, the
issuer finds too little demand for his securities adequately to finance
needed expansion. If a condition of investment market instability continues, it can lead only to a lessening confidence on the part of the
investor and a weakened credit for the issuer of securities whether for
Governmental or business enterprises.
[VoL. 127.
mittee maintains that "the Board of Directors of the railroad is primarily responsible for the sale of its securities,
and . . . believes that the Board should have complete
authority in determining the manner of sale of the
securities."
The report also dealt with the subject of railroad rates,
which it is noted "are very low and have tended downward
for several years." "Many of these reductions," said the report, "have been given voluntarily by the railroads on account of the pressure of competition with other kinds of
transportation and many reductions have been imposed
upon the railroads by decision of the Inter-State Commerce
Commission." "No doubt," the report continues, "many of
the decisions given by this body were brought about by its
interpretation of the Hoch-Smith resolution, the effect of
which is to base rate-making on the condition of industriesand the movement of the commodities affected, rather than
on the cost of transportation." "Because the tendency of
average freight rates has been downward" and "because of
the upward-revision of wages and salaries," the report finds
that "the prospects for obtaining a fair return on the property remains as remote as ever." In expressing the view
that "economically sound railroad consolidation would be
possible of accomplishment if it were not for the terms of
the present laws," the Committee recommends that the
existing laws be so modified as to permit voluntary consolidations when the Inter-State Commerce Commission finds
them not to be against the public interest and to permit
each individual consolidation plan to be approved or disapproved by the Inter-State Commerce Commission entirely
upon its awn merits and without reference to any general
plan." Lewis B. Williams, of Hayden, Miller & Co., of
Cleveland was Chairman of the Committee which drafted
the report. Because of an airplane accident on Oct. 18,
which resulted in the death of one of the members of the
Association and the injury of several others, the report
which was scheduled for presentation to the Convention on
Oct. 19, was not read, but at a brief session on Oct. 19 was
ordered distributed to the members. The report follows:
The Federal authority which regulates the railroads of this country
traces its origin to the Congressional Act of 1887, which created its InterState Commerce Commission, and to the Transportation Act of 1920, whichamended the former act. It was not until about twenty years after the
first of these enactments that government regulation in this country became
at all oppressive and it was with the advent of the United States into the
World War that the present era of intensive governmental regulation began.
In general, since 1920 the results of this regulation have been favorable.
Particularly praiseworthy has been the inauguration of standard methods
of accounting, which permit a more accurate appraisal of railroad security
values than of any other type of corporate issues.
Under the laws as they at present exist, however, there is no clear lineof demarcation between the powers of the United States Government toregulate railroads and the powers of the corporations which own the
railroads to operate and manage their own property. The regulatory body—
that is, the Inter-State Commerce Commission—has on different occasions
shown a tendency to go beyond reasonable limits and assume managerial
functions. Obviously such assumption may seriously embarrass responsible
railroad executives in the proper execution of their duties. Further, as
evidenced by the failure of the Senate to confirm the reappointment or
Mr. Each, that body has created a precedent of using its power to confirm
appointments for political purposes. Such practice can of course lead to
but one result. The personnel of the Inter-State Commerce Commission
Report of Railroad Securities Committee—Opposes will be materially reduced in quality and decisions of the Commission
will be affected not by the logical findings in each case but by political
Tendency of Inter-State Commerce Commission affiliations
or prejudices. The solution of this problem appears to your•
to Assume Managerial Functions—Sale of Securi- Committee to require, first, Congressional action which will place the
Inter-State
Commerce Commission as far as possible from the influence
ties by Competitive Bidding Likewise Opposed.
of political bodies, so that there can be only a minimum of partisan intertendency
of
the
Inter-State
The
Commerce Commission ference in decisions rendered, and, secondly, a definite judicial determina"to go beyond reasonable limits and assume managerial tion of the powers and duties of the Inter-State Commerce Commission In railroad regulation.
functions" was referred to in the report of the Railroad
Railroad rates, as we all know, are very low and have tended downward'
Securities Committee of the Investment Bankers Associa- for several years. Many of these reductions have been given voluntarily
tion, which observed that "obviously such assumption may by the railroads on account of the pressure of competition with other
kinds of transportation and many reductions have been imposed upon the•
seriously embarrass responsible railroad executives in the railroads by decisions of the Inter-State Commerce Commission.
No doubt'
proper execution of their duties." "So far as the special many of the decisions given by this body were brought about by its
interpretation of the Hoch-Smith Resolution, the effect of which is to
Interest of the Investment Bankers Association is con- base rate making on the
condition of industries and the movement of the
cerned," said the report, "the discussion of the interference commodities affected, rather than on the cost of transportation.
interesting to note how little the price of a commodity is affected '
of the Government regulatory bodies in the managerial byIta ischange
in the freight rates. The Inter-State Commerce Commission
functions of railroads is confined to the marketing of securi- Document No. 17,000, known as Rate Structure Investigation and Revenues
in
the
Western
District, Ex Parts 87, has many striking examples of the ties." The report adds:
effect of different increases in freight rates on the prices of commodities
"In their reports of 1924 and 1926 the predecessor committees ex'- shipped from
the Western District. For example on hauling wheat to
pressed themselves as opposed to the sale of railroad securities by competi- Chicago from
the points indicated below, an increase in rates of 10%
tive bidding. In spite of almost unanimous opposition to this practice would affect
the price per bushel as follows:
among financial authorities and railroad executives, the Inter-State Com.0087 Rochester, Minn
0126
merce Commission is continuing with its experiments and studies in Bryant,Iowa
Aleater, El. D
.0162 Janesville, WM
.0075
this matter."
Fremont, Nab
.0162
The Committee reiterates the decision heretofore taken
Many other such examples can be found by careful perusal of the docuby the Association that it opposes enforced competitive ment. When the great benefit to the railroads of an increase in rates is
compared with the small effect on commodity prices as shown by this.
bidding for railroad securities as not being in the ultimate investigation,
it appears that it would not be a disastrous thing for the
interest' of either the railroads or the investors. The Com- 'productive centers to pay freight rates which would enable the roads to.
Nov. 3 1928.]
FINANCIAL CHRONICLE
earn a fair return. Freight rates paid by the shipper are in the final
analysis an investment in transportation and the quality of this transportation is usually in direct proportion to the rate paid. The cheapest
transportation is not always the most economical. What the shipper wants
is the most efficient and economical transportation and he should pay a
rate which will enable the roads to give it to him and to pay a sufficient
return to the owners that the roads' credit may be maintained and new
capital procured upon the most favorable terms when needed. Because the
tendency of average freight rates has been definitely downward, however,
and because of the upward revision of wages and salaries, and further
agitation for increase of wages, the prosspects for obtaining a fair return
on the property remain as remote as ever. Moreover, since the fair return
Is related to property values, the method of property valuation will remain
a controversial subject, at least until the Supreme Court has had an
opportunity to pass upon the O'Fallon case.
The present laws require that a definite plan for consolidation of the
railroads of the country be prepared, and that all consolidations to be
approved by the Commission be in accordance with this general plan.
Two obstacles have arisen however: the failure of the regulatory body to
prepare this general consolidation plan and the inability of the railroad
executives and stockholders who would be affected by the proposed consolidations to completely agree on any plan. There cannot be any doubt but
that economically sound railroad consolidation would be possible of accomplishment if it were not for the terms of the present laws. Your Committee
recommends that the existing laws be so modified as to permit voluntary
consolidations when the Inter-State Commerce Commission finds them not
to be against the public interest and to permit each individual consolidation plan to be approved or disapproved by the Inter-State Commerce
Commission entirely upon its own merits and without reference to any
general plan. The predecessors of your Committee in 1924 and 1925
made similar recommendations.
So far as the special interest of the Investment Bankers Association is
concerned, the discussion of the interference of the Government regulatory
bodies in the managerial functions of railroad executives is confined to
the marketing of securities. In their reports of 1924 and 1926 the predecessor Committees expressed themselves as opposed to the sale of railroad
securities by competitive bidding. In spite of almost unanimous opposition to this practice among financial authorities and railroad executives,
the Inter-State Commerce Commission is continuing with its experiments
and studies in this matter. Your Committee views with regret that the
Inter-State Commerce Commission deems it essential to the interests of
the railroads to sell their securities at extreme high prices, because original
issues of railroad securities seldom advance over their issue prices for
long periods after their public offering, and this fact has tended to lessen
the popularity of railroad securities in comparison with the American
public utility and industrial bonds. Exceedingly high prices leave no margin
for adequate distribution. The securities are not properly placed and the
secondary market necessarily suffers from this depressing factor.
This
reacts adversely upon the credit of the particular road, and
in turn
adversely affects all railroad securities, with the result that in
the end
lower prices for all railroad securities are generally realized.
Competitive
bidding merely adds one more factor tending to induce this over-pricing
of securities without any compensating advantages. The Board of
Directors
of the railroad is primarily responsible for the sale of Its
securities, and
your Committee believes that the Board should have complete
authority
In determining the manner of sale of the securities. The public
utilities
and the industrials have been left free to sell their securities
in any way
that they see fit, and practically none of these types of
securities have
been sold by competitive bidding. Numerous other reasons
which the
Committee has taken into consideration, and which
have led it to its
present conclusion, have been stated in earlier reports of
your Committee,
notably those of 1924 and 1926. We believe at this time that
it is sufficient to say that the Committee reiterates the decision
heretofore taken
by the Association that it opposed enforced
competitive bidding for railroad securities as not being in the ultimate interest of
either the railroads
or the investors.
Your Committee has been charged with the examination
of circulars
describing current issues of railroad securities. It has
(-weed all such
circulars published by members of the Association to
be read and as far
as possible carefully checked. Generally they are
satisfactory. We believe
that the present form recommended by the
Association is inadequate and
that if properly followed will develop a satisfactory
circular.
General conditions in the railroad field continue to
be satisfactory from
the viewpoint of the investor, with the exception
of those conditions outlined above. Your Committee Is pleased to
point out the increase in the
use of common stock as an instrument of
railroad finance during the past
year, the decrease in railroad mileage in
receivership, and, most important
of all, the absence of unfavorable
legislation during the year. The prospects for improved business this fall are
very good
that some increase in earnings over the similar indeed, and it is possible
period in 1927 will result.
Earle Bailie
N. R. Deiander
Everett B. Sweet)
,
John It. Chapin
Jerome
J.
Hanauer
John
Watling
J. A. Clark
Julius W. Reinholdt Jr. L. B.W.
Williams, Chairman
Report of Public Service Securities
Committee—
Federal Trade Commission's Inquiry
into Public
Utilities—Boulder Darn and Muscle Shoals
Legislation.
In its Comments on the Public Utilities
Investigation by
the Federal Trade Commission, the Public
Service Securities
Committee of the Investment Bankers'
Association of America stated that "Your Committee takes the
stand that the
industry has nothing to fear from a
non-political, factfinding investigation and approves all
educational work
whether by way of news articles or by way of
paid advertisements, or by any other fair means, provided
the subject
matter is presented truthfully and fearlessly.
. • . Your
Committee believes that the utility corporations as
a whole
are honestly managed, and have been and are
one of the
forces of primary industry which has made
America great,
and we feel that if the effort to Federalize or
Naitonalize
public utilities is successful, then greet calamity
will have
fallen upon this country." The report further
said:
2463
We now reaffirm the position so often taken by the Investment Bankers'
Association of America, in that we are entirely opposed to the entry of
Government into business and we feel that both as to quality and cost of
service the people of this nation are better served under private than under
public ownership, and we reaffirm our belief in state commission control
rather than Federal administration.
The report was presented by John P. Baer, of John P.
Baer & Co. of Baltimore, Chairman of the Committee. It
was stated in the report that "this country has led the world
in the development of its industrial resources. The fact
that the output of the electrical plants of the United States
represents nearly as much as that of the rest of the world
combined was noted in the report, which stated that the estimated capitalization of this industry is $8,500,000,000.
The gas, telephone and street railway industries were likewise reviewed in the report, which we give in full herewith:
Within the life of the average man, electric light and power has developed
from a laboratory experiment into an industry occupying a fore place in
the rank of American business enterprise. Its field has been so extended
that it is useless today to attempt to define its ultimate limits. It is
almost a certainty that those things which have been accomplished to date
are trivial as compared to those which will materialize in the future.
In this present age, progress and expansion are recognized as being
dependent upon the supply of light and power energy, and because of the
vitality and service of this industry and the 'growing interest in it, the
query is frequently launched as to what will be its future and to what
extent it is likely to develop and along what lines such development will
follow.
The total production of electricity of the world in 1926 was approximately 150,000,000,000 kilowatt hours. The output of the plants in the
United States represents nearly as much as that of the rest of the world
combined. This country leads the world in the amount of machinery and
power at the disposal of its people, and in no other country has the cs.pacity
of its prime-moving machinery grown to such volume or with such
rapidity.
This country has led the world in the development of its industrial
resources. We have made remarkable increase in national efficiency as
expressed by larger individual productiveness—our American workers produce more goods per man than ever before. They do it with greater
skill, with less actual labor and with shorter hours. This productiveness
has enabled the industry to maintain a high wage level, while at the same
time it has held down, and in many cases reduced prices and cost of
living. Statistics show that during the period from 1914 to 1925 the
industrial output of this country, on a quantity basis, increased about
70%. During the same period the quantity of power supplied increased
about 61%. The number of persons engaged, however, has increased only
21%, thus indicating an enlarged production per worker. This increased
productivity has enabled us to maintain a wage level more than double
that prevailing before the war, while general cost of living is substantially
only 65% higher. Therefore, it appears that there is a vital inter-relation between use of power, higher wages and better standard of living.
A review of conditions, including a forecast of the near future, should
give ample satisfaction that the next few years will see an even greater
development in this industry than in any other previous period.
Look for a moment at the market for electric power in the next few
years. A well-known operator recently said that the next five years will
show a much larger increase in residential consumption than that which
has taken place in the last ten years. With the perfecting of further laborsaving devices, along with the utilization of those which exist, this consumption can very easily be increased many times.
The field for industrial power up to this time has been in a state of
development. Out of the radio there now arises television, talking pictures and many other industries which are just beginning to be seen as
possibilities. The electric industry can develop in so many ways and csn.
have such far-reaching activities that it is almost impossible to conceive
its future. The electrification of the farm is now becoming an actual
reality, and although yet but little developed, looms ahead as a broad
future market.
In conclusion, we wish to state that in our opinion the continued trend
toward mergers and consolidations is desirable for it tends to link trg
isolated plants, earning little and rendering mediocre service, into great
Inter-connected systems with reduced overhead expenses, improved service,
dividends for its many security.holders, and at the same time reducing
rates.
The estimated capitalization of this industry is $8,500,000,000.
Ths Gas Industry.
The two words best descriptive of the gas industry are "stability" and
"adaptability." Stability, because the industry through more than a century of life has regularly served its customers. Adaptability, in that it.
must meet and cape with difficulties as they arise, to surmount them, to
plan diligently and intelligently for the future, to seek and perfect new
uses for its product and to prepare for the demands of the years ahead.
Within the span of a single lifetime, the gas industry has witnessed a.
change from a 90% lighting load to a 92% heating load and during that
period and in the face of this complete transformation of utilization of
its product, the manufactured gas industry has increased its sales 400%.
Although furnishing very limited service, so far in rural districts or in
small communities, the manufactured and natural gas industry has in the
United States fifteen million customers who are using per capita 70%
more gas than they used ten years ago. The annual increase in manufactured gas sales, continuous since 1906, hasabeen steady and regular, the
largest percentage of increase occurring in the year when there were the
greatest industrial demands on the country because of the war in Europe
and the smallest percentage increase in the year when we were all exhorted
and required to use less of everything because "we were at war."
While the statistics of sales of natural gas have not shown such regularity as indicated in the above figures pertaining to manufactured gas,
It is known to all that much more natural gas is now being sold than ever
before. The extension of natural gas service to many cities in the Southwest has in the past year or so greatly stimulated industrial activity and
urban development.
During the year 1927, the sales of manufactured gas in the United
States were in round figures 475 billion cubic,feet and of natural gas 1
trillion 248 billion cubic feet, a total of nearly one and three-fourths
trillion cubic feet.
In the industrial world, gas is now being applied to more than
21,000
separate uses. Control is again in this field a most important
factor and
2464
FINANCIAL CHRONICLE
[VOL. 127.
Bankers Association Bulletin, Vol. 16, No. 4, as of date June 27, 1928,"
we would state that the matter of proposed public utility legislation in
Massachusetts has continued to receive the attention of your Committee,
but nothing definite can be reported at this time. Some of the leading
operators in the State and Public Utility Commission are endeavoring to
arrive at some form of legislation which will be reasonable to all parties
and will form a sound basis for future rate-making. The Legislature does
not meet until January 1st and the proposed new bill will not be ready
until that time.
Uniform Public Utilities Act.
Reference has been made both at the Seattle Convention of 1927 and
May, 1928, meeting to the Uniform Public Utilities
There are today about 19,000,000 telephones in service in the United at the White Sulphur,
resulting in our approval of the general principle involved, but with
States, or approximately three-fifths of the 32,000,000 telephones in the Act,
towards the omission of that portion of the bill
world. Service by land lines to Canada and the principal cities of Mexico, recommendation looking
Commission regulation of the issuance of
by submarine cable to Cuba and by transatlantic radio circuit to Great dealing with Public Service
that matter could be given more study to work out some
Britain has been extended during the past year to embrace the whole of securities, until
details.
-Germany, the Netherlands, Switzerland and Belgium, as well as such of the perplexing
We now beg to report that at the annual meeting of the National Conimportant cities as Paris, Copenhagen, Stockholm, Oslo, etc., which are
Commissioners
on Uniform State Laws, Seattle, Washington,
ference of
now within reach of American telephone-users.
17-23, 1928, the Committee recommended to the "Conference that no
The telephones in this country are connected by over 67,000,000 miles July
further action be taken at the present time with reference to the preparaof wire, of which about two-thirds is in underground cable, slightly over
tion of a Uniform Act on this subject. The Committee has consulted with
one-fourth in aerial cable and the remainder in open wire. At present,
Utilities Commissioners, Utility Operators, Investment Bankers and other
a large part of the most highly industrialized section of the country is
interested parties, concerning this type of legislation, and it has been
connected by the network of practically storm-proof cables.
found that there is such a substantial lack of unanimity of opinion as to
Telephone companies in the United States transmit an average of more
the desirability of regulation by Utility Commissioners of utility securithan 75,000,000 conversations per day, employing nearly 400,000 people.
ties. Until the issue involved becomes less controversial and details of the
The total investment in telephone plant and equipment in the United problem become better understood, it is believed that uniformity should
States is about $3,700,000,000. The gross operating revenues of the tele- not be attempted.
phone industry in this country for the year ending June 30, 1928, were in
It was, therefore, recommended that the Conference defer further action
excess of $1,000,000,000. American telephone companies are spending on on the subject for the present time.
additions and replacements to telephone plant and equipment upwards of
As this recommendation is in lime with the thought of our Association,
$1,000,000 a day.
there is no action needed at this time.
These expenditures include payments for manufactured products and
Muscle Shoals.
raw materials, wages, interest and dividends distributed among business
Referring to the Muscle Shoals Bill we beg to report that same was
concerns, employees and stockholders in every section of the country.
These expenditures help to increase the general business activity of the passed by the Senate and House of Representatives on May 25, 1928. This
country, although their influence is, of course, much less than the eco- Bill, however, did not receive the approval of the President of the United
nomic effect of the telephone service itself in stimulating business facili- States and has not become law. There is no doubt, however, that this
situation will be up before the next Congress for consideration.
tating quick and economical communication.
The Bill as passed but not signed deals primarily with four important
Street Railway Industry.
propositions:
Despite decreasing patronage and growing traffic congestion in the cities,
1. For Government operation of the Muscle Shoals properties by the creation
the street railway industry of the United States faces the future today of the Governmental Corporation.
2. For experimentation in the manufacture of fertilizer.
with more optimism than it has felt for the past few years, which have
3. For the sale
surplus electric power. The surplus power not used in the
undoubtedly been dark ones. Street railway men themselves are today fertilizer operationsofwould
be distributed to municipalities, counties, States and
amazed that the industry has survived at all, and are convinced that its organizations of farmers and other co-operative organizations not organized for
Profit for the purpose of supplying cheap electric power.
survival is proof of the basic human necessity of it.
4. For construction of Cove Creek Dam for the benefit of navigation, flood
It has faced an unprecedented accumulation of misfortunes since 1920. control
and the generation of electric power. Construction work to be done wider
The rapid growth in the use of the automobile beginning after that year, the direction of the Secretary of War.
and becoming greater each year, took away millions of passengers. ReThe Bill as finally passed by the Senate and House differed materially
sulting traffic congestion tied up the cars in the streets, demoralized from the original House Bill, for in this latter Bill it was proposed to
their schedules and made efficient service impossible. The street car com- put the Government directly into the business of manufacturing and selling
panies bore the brunt of all the public criticism. Operating costs, of fertilizer in direct competition with private producers. The dominant
which platform wages represent the greatest part, jumped nearly 200 per idea of the Bill, as finally passed by the Senate and House, was to conduct
cent since 1914. Fares went up little more than 60 per cent. The 5-cent experimentation in the manufacture of fertilizers of such character as the
fare, all but written into the Constitution, was hard to get away from. industry at present is not in a position to undertake, new processes disThus, with expenses increased, service impaired, the rubber-tired com- covered by the Government to be dedicated to the public and made available
petition of individual transportation steadily growing fiercer and the way to private producers.
to more revenue blocked by the low-fare fetish and Public Service ComAt the moment there is nothing to be done so far as your Association
missions, street railways were having a struggle for existence.
is concerned, and we can but refer this matter to the incoming Public
Revenue passengers in 1927 numbered 15,000,000,000, which was about Service Securities Committee for their study and action.
a billion less than in 1920 and 1923, the peak years of the industry. In
Swing-Johnson Bill—Boulder Dam.
the meantime automobile registrations had climbed from 4,500,000 in 1917
In our interim report of May, 1928, your committee took the ground
to 20,140,000 in 1927. Net revenue was lower than ever since 1925,
despite the fact that expenditures for plant and materials had been reduced "that in view of the great differences of opinion between the representatives
by careful economies to $225,271,000, during 1927, or less than at any from the various states most vitally interested in this project and further
time since 1923, when estimates of these expenditures first were com- in view of the different opinions expressed by various engineers regardpiled on a nation-wide scale. Orders for only 1,348 electric cars and ing the proposed way of handling the physical end of Boulder Dam, as
locomotives were placed in 1927, which was the lowest figure (with the well as the great difference in the cost of various kinds of construction,
exception of 1921), since 1907. Thirteen companies went into receiver- we dared suggest that before the Government commits itself to the huge
ship in 1927, but this was fewer than in any year since 1916, with the expenditures involved in the Swing-Johnson Bill that further and more
exception of 1923. Yet, every year since 1909, no less than ten companies thorough investigation be made to determine that the results which it
had been thrown into the courts, and the figures were more often closer to seeks to accomplish can be assured with a reasonable degree of success and
20 a year, the high point being 1919 when 48 companies went into r.e- at the least possible cost."
Since the May, 1928, meeting we beg to advise that the passage of the
ceivers' hands. People were insisting that street cars were obsolete and
demanding motor buses. The industry, therefore, faced 1928 with. mis- Swing-Johnson Bill was blocked in the last session of Congress, and there
was
adopted in lieu thereof a Joint Resolution, which became a law on
givings. But during the year there has been a growing feeling that the
tension was lessening. The most important development of the year seems May 29, 1928, providing for the appointment of a board of five eminent
engineers and geologists, one of whom should be an engineer officer of the
to be an improvement in the public understanding of the problem.
The street railway companies have been working hard for this. Six Army, to examine and report upon the dam to be constructed under the
years ago they were spending virtually nothing for advertising. In 1928, Swing-Johnson Bill. Under the terms of the Congressional Resolution,
their advertising expenditures probably will reach $7,000,000, or $1,000,- this Board must review the plans and estimates made for the Boulder Dam
000 more than in 1927. Despite the dark outlook, they planned to spend project by the engineers of the Reclamation Service of the Department of the
more on better service during 1928, and their outlay for more cars, better Interior and report "as to matters affecting the safety, the economic and
track and faster schedules probably will total close to $250,000,000 for engineering feasibility, and adequacy of the proposed (structure and inci1928, or $25,000,000 more than in 1927. More companies have gone dental works." The Board's report must be submitted to the Secretary
after the 10-cent fare, insisting that the dime today is no more for a car of the Interior prior to December 1st, 1928, for transmission to Congress.
We are, therefore, very pleased to report that the stand taken by us
ride than the nickel of 1913. This has produced violent public discussions
and brought many street railway problems into the light for public in- last summer as to a more thorough investigation of the engineering needs
spection, and the industry has profited by this. In New York, the 6-cent of this situation seems to have found favor, and the Congressional Resolufare fetish was held up to the light with the Interborough's demand for tion of May 29, 1928, is in accord with that thought, and we can but
a 7-cent fare, and the public permitted to see its unsoundness. The await the report of the Commission, and to closely watch subsequent legisindustry was getting the bus problem well in hand, by simply undertaking lation, and to take such action as is necessary at that time to carry out
bus operation itself, as auxiliary service to that of the street cars. Nearly the best thought of our Association.
20,000 miles of bus routes ass being operated now by street railway comCirculars.
panies. Then, at a recent convention in Cleveland, a very prominent interAt the May meeting of the Board, we had occasion to comment upon
national
publicity
national figure, in a speech, secured
for the ideas that the question of public utility
circularization and, at that time, criticised
the street railway is absolutely an essential industry, that private owner- certain features or, rather,
certain omissions in the preparation of circulars.
ship is preferable to public ownership, that traffic congestion must not be At that time, we found
it necessary to call attention to the omission of
permitted to fetter public transportation, and that fares must be com- the following important
features in a majority of circulars:
mensurate with the cost of giving service.
(a) Franchise position.
Not even the most optimistic street railway man believes the industry
(b) Balance sheets
Is out of the woods yet, or anywhere near it, but they are all now certain
(e) Lack of information regarding origin of audits and appraisal reports.
(d) The necessity of including, by way of foot-note or otherwise, a statement of
that extinction was merely a nightmare, that the bottom has been touched
estimated Federal taxes and depreciation.
and the way is now upward.
Since that time, the Public Service Securities Committee has re-affirmed
Total capitalization of public utilities in this country is estimated to
the findings of the Special 1923 Circular Committee, as follows:
be at least $18,000,000,000.
"Public Utility.
The Massachusetts Legislation.
Circulars should contain information on the following points:
Regarding the Massachusetts Public Utility case, which was fully repohed
I. Description, including location, ohsractairice of territory and population
at the May meeting of the Board, and which can be fotmd in "Investment served.
as in house-heating, accurate temperature regulation, the abolition of the
problems of storage and handling of coal and of the collection and disposal
of ashes, play important parts. The industrial load factor is especially
Important and desirable, the consumption being much more steady throughout the year.
The prospect of the gas industry appears to be the best in its history
and that it can confidently look to its future with assurance of continued
growth and usefulness.
The total investment in this industry is now approximately $4,360,000,000.
Telephone Industry.
Nov. 3 1928.]
FINANCIAL CHRONICLE
2465
14 Interest and discount received from other companies on other than long-team
2. Service furnished, including proportion between kinds of service.
obligations.
3. Franchises, including public relations, regulation of rates, &c.
15 Dividends declared on capital stocks of respondent.
4. Description of management.
16 Annual interest on long-term debt of respondent.
5. Description of Property, capacity, output, engineering features. &c.
17 Interest and discount paid on obligations other than long-term and other Man
6. Valuation of property and basis of valuation.
capitalization.
to
banks and trust companies.
statement
of
or
clear
sheet,
7. Balance
18 Summary of amounts accrued as income for services.
8. Earnings, including operating ratio, statement as to depreciation, ratio of net
19 Fees received for construction, planning and supervision for affiliated comato charges, dividend record.
panics.
9. Security for issue:
20 Amounts received for construction work for affiliated companies.
a Character of security (mortgage, note, d Value of equity, if possible.
Restrictions,
escrow
clauses,
e
&c.
21 Fees received for operation and management of properties.
&c.).
f Sinking fund, depreciation reserve, do.
22 Fees received for management of finances for affiliated companies.
b Property covered.
23 Commissions received for purchases of land and goods for affiliated companies.
c Prior liens.
24 Summary of cost of fees to respondent.
10. Purpose of issue.
25 Fees paid for construction, planning and supervision.
11. In the case of stocks, voting rights should be stated clearly as well as any
26 Fees paid for management of property.
Provisions for the protection of the holders.
27 Fees paid for financing respondent other than amounts reported as interest.
Holding Companies.
28 Commission paid affiliated companies for purchases of land and goods.
Electric and Gas Utility Statistics.
Circulars should contain information on the following points:
1 Electric energy to be accounted for and energy disposed of.
1. Companies whose securities are held.
2 Distribution of electric energy,
proportion
of
total
securities
held.
showing
2. Schedule
3 Sales of electric energy to other electric utilities, to electric railways and to
3. Management, stating whether operating or otherwise.
others under Interchange agreements.
4. Consolidated balance sheet, or clear statement of capitalization, showing prior
4
Purchase of electric energy from others.
including
those of subsidiaries.
securities outstanding,
5 Inter-State and international movement of electric energy.
5. Earnings, including consolidated statement, showing earnings applicable to
6 Summary of generator ratings and electric loads.
holding company securities, income statement of holding company and dividend
7 Water power rights.
record.
8 Communities served with electricity.
8. Security for issue:
9
Gas to be accounted for and gas disposed of.
note.
d
Value
of
(mortgage,
equity,
if
security
possible.
a Character of
10 Distribution of gas.
e Restrictions, escrow clauses, &c.
do.).
11 Purchases of gas from others and sales of gas to other gas utilities.
f Sinking fund, depreciation reserve, do.
b Property or securities covered.
12 Inter-State and international movement of gas.
c Prior liens.
13 Communities served with gas.
7. Purpose of issue.
stocks,
voting
rights
of
case
the
should
be
any
stated
Miscellaneous Schedules.
clearly
as
well
as
In
8.
provisio.s for the protection of the holders.
1 Advertising.
newspapers,
also loans to.
interests
in
2
Stock
In addition to the above, for both operating and holding companies,
3 Contributions and dues to trade associations and contributions to political
we recommend the inclusion of the following paragraphs:
campaigns and other contributions.
4 Attorney's fees
a. Clear statement either in circular or by prominent foot-note showing estimated
5 Contributions to schools, colleges, universities. do.
Federal taxes and depreciation.
6 Payments to newspaper men, college professors, &c.
b. That the actual figures or percentage of gross earnings for maintenance be
7 Analysis of insurance.
clearly set forth in offering circulars.
8 Public addresses by employees.
o. Ali circulars should contain full and adequate Information regarding all material
factors. and, further, there should be in the hands of issuing bankers complete deWe desire to comment upon the so-called "educational propaganda"
tailed information and statistics covering every phase of the offering. This infor- situation, as the question is one of great diversity of opinion. The Maas
mation should be obtainable (without trouble) upon application, and so stated in
circular.
of the country are divided; a part have endeavored to Convey the thouglit
the
The question of furnishing to the buying public complete and adequate that the utilities "had been engaged in practices which were slated miniinformation regarding the security offered is one of greatest importance inel in their tenor"; an the other hand, other press media have taken an
and this Committee begs to emphasize the need of betterment in this entirely opposite idea and we beg to quote:
(line correspondent writes: -"The vast majority of straight-thinkbig
regard. We find in many cases that adequate information is not given.
We cannot condemn too harshly carelessness in the preparation of a cir- Americans will very likely look upon them as legitimate effort. to kern
rising tide of socialism, and they will more than likely wender, it tacit
the
cular.
The first duty of an hivestment banker is the protection of his client those most financially interested should exert themselves to preserve to
This must take precedence over all other thought and action. The profit the people of this country the right of private ownership and- eperation
to the selling banker and the market position of the security must be sub- of the public utilities."
ordinated to the one main thought—protection and full value to the cusAnother commenting says: "That whoever counteracts the influence a
tomer. Any other thought is contrary to the ethics of our buainese as those who are seeking to have the Federal, State and municipal governments
wen as to the inbred desire we all have to act openly and honestly in this take over utilities renders country a genuine service."
matter. To do aught else would be to stultify both ourselves and our
Again: "It is hard to understand why in a free country like ours asprofession. We, therefore, call upon every member of this Association to persions should be hurled at an individual or company that fiesta the
measure his offerings with the yardstick of frankness and honesty.
encroachment of policies which would not only destroy it, but would liltWe do not believe that these cardinal principles can be attained by a dermine and take away the rights and privileges of individual citiseas.
set standard of rules, but we do believe that by education we can, in great Where is there anything wrongful in an individual or a company fighting
measure, overcome the looseness, in some cases, of present circular prepara- the adoption of socialistic policies by our Government? UtIlity executives
tion and to secure, as time goes on, circulars as nearly perfect as mortal would be criminally negligent toward the stockholders if they sat quietly
agency can make them.
by and allowed investments in their cempanies to be jeopardized and possibly ruined, without raising their voices in defense and in favor of
Public Utilitiee Investigation.
private enterprises and initiative as established and encouraged under our
In the interim report made at the 1928 White Sulphur Meeting, your Com- Constitution as against practices which may destroy our most trusted and
mittee commented upon the pending investigaton of Public Utilities by long-established principles of government"
the Federal Trade Commission and related the history of the case from its
Another says: "Tre utility industry has a worthwhile story to tell and
inception in the U. S. Senate up and through the various hearings of the it will continue to be told, honestly, completely, and, I hope, widely. The
Commission, which at that time were more or less of an analytical nature Industry will always be subject to attack because it is large, progressive
and carried naught of particulaar import as regards financing or security and successful. So long as it continues to render efficient service and
values.
continues to be the power for advancement that it has been it would seem
Since that report, the Federal Trade Commission has held additional safe to leave the judgment of its methods arid of its value to those whom
hearings, most of which pertained to the so-called "educational propa- It has most benefited—the great mass of citizens of this country."
ganda" on the part of the Utilities Companies. Naturally, the Commission
That there seems to be a growing tendency on the part of public thought
has not brought in findings of any kind and this matter remains in an to insist on fair consideration of utilities is outlined in the following
uncompleted state; however, under very recent date the Commission has expression:
forwarded to the electric and gas utilities, both service and holding com"The utilities have organized to get their side of the story before the
panies, a questionnaire requiring the following information:
people and neither the schools nor the press is to be condemned merely
on the ground of having lent themselves to propaganda. The vital question
General.
is whether the propaganda is true and for the public benefit."
1 Identity of respondent.
A timely word of warning is given by a responsible paper along the
2 Directors and officers.
3 Electric and gati utility properties operated by respondent under lease or
lines:
following
other
agreement.
"If private initiative wishes to keep the largest possible field for itself,
4 Stockholders,
the proper course is not to rail against the alleged inefficiency of govern5 Stock held by trustees.
ment, but to weed out the inefficiencies and dangers which so often fasten
Balance Sheet.
1 Comparative balance sheet.
themselves upon private initiative itself. It is not the disposition of the
2 Summary of pledged and unpledged.
American
people to build up a greater and greater government machine
3 Stock Interests held by respondent In other companies.
4 Stocks of other companies held.
merely for its own sake. What is wanted is more efficient serviee. If
5 Long-term obligations of other companies held.
private agencies do not give this, they should not be surprised that the
6 Stocks and long-term obligations acquired.
people turn in other directions in the search for it."
7 Stocks and long-term obligations disposed of.
Your Committee takes the stand that the industry has nothing to fear
8 Advances to and from other companies.
9 Analysis of capital stock of respondent.
from a non-political, fact-finding investigation and approves all educa10 Capital stock actually issued.
tional
work whether by way of news articles or by way of paid adver11 Capital stock retired and cancelled.
tisements, or by any other fair means, provided the subject matter is pro12 Analysis ot long-term debt of respondent.
13 Long-term obligations actually issued.
seated truthfully and fearlessly. Your Committee feels that the publie
14 Long-term obligations retired and cancelled.
management can be depended upon to discourage any effort to include in
15 Stocks sold In customer ownership campaigns.
their educational program ambiguous statements sr subject matter that may
16 Detail of electric utility fixed capital.
17 Analysis of electric utility fixed capital.
mislead or may convey an incorrect impression. Your Committee be18 Valuation of electric utility property by regulatory authority.
lieves that the utility corporations as a whole are honestly managed, and
19 Detail of gas utility fixed capital.
have been and are one of the forces of primary industry whieh has made
20 Analysis of gas utility fixed capital.
21 Valuation of gas utility property by regulatory authority.
Amerca great, and we feel that if the effort to federalize or nationalthe
22 Purchases of gas and electric plant properties.
public utilities is successful, then a great ealamtty will have fallen upon
23 Analysis of depreciation, or retirement, reserve.
this country.
24 Basis of depreciation or retirement expense.
We again publicly proffer the services of the Investment Bankers' AssoSurplus, Income and Profit and Loss Statement,
ciation, its officers and its members to the Federal Trade 007111118111011 if
1 Analysis of surplus.
we can aid or assist them in their investigation.
2 Consolidated income statement.
3 Intaglio from operation of electric and gas utilities.
We now reaffirm the position so often taken by the Investment Bankers'
4 Electric utility operating revenues and expenses.
Association of America, in that we are entirely opposed to the entry of the
5 Gas utility operating revenues and expenses.
Government
into business and we feel that both as to quality and met
6 Holding company—Profit and loss statement.
of service the people of this nation are better served under private than
7 Construction company—Profit and loss statement.
8 Management and engineering—Profit and loss statement.
under public ownership, and we reaffirm our belief in State commission
9 Investment banking and investment trust—Profit and loss statement.
10 Income Statement for compaales other than holding, electric and gas con- control rather than Federal administration.
Motions, and service.
PUBLIC SERVICE SECURITIES COMMITTEE.
11 Analysts of certain operating expenses of companies other than holding, electric
Lloyd S. Gihnour
Alvin F. Sortwell
Hermann F. Clark
Logan A. Gridley
and gas, constnictions, and service.
K, Winslow Jr.
James A. Eccles
12 Cash dividends received on stocks of other companies.
Robert Haydock
J. H. Briggs
Henry J. Fuller
13 Interest Income on investments in long-term obligations other than govern.
Richard E. Norton
Oliver J. Anderson
John P. Baer, Chairman.
meat securities.
The report was unanimously accepted.
FINANCIAL CELRONICLE
Report of Municipal Securities Committee—Decisions
Involving Oklahoma Funding Bonds—Amendment
to New York Law Governing Investments of
Savings Ranks—Recognition of Association's Position on Limited Tax Obligations.
In addition to decisions involving Oklahoma Funding
Bonds and other bond issues, the report of the Municipal
Securities Committee of the Investment Banker's Association ,druw attention to the amendment to the New York
State banking law increasing the number of unlimited tax
obligations available for the investment of savings banks
lu Ae,State. ,The report was submitted as follows by John
J. English, of William R. Compton Company, Chicago,
Chairman of the Committee:
r/170i.. 127.
officials and taxpayers. Such practices tear down rather than 'build up
respect for good faith upon which we depend so much for the payment
of the class of obligations we handle. They should be discarded because they
are not good business since they unnecessarily force expensive protective
measures and place an additional burden upon the already heavy but
legitimate buying charges against municipal issues.
Respectfully submitted,
J. RITCHIE KIMBALL
JOHN S. HARRIS
DARNALL WALLACE
C. EDGAR HONNOLD
JOHN .1. ENGLISH, Chairman
[The report was accepted unanimously.]
Report of Committee on Investment Trends—Unwise
Speculation Growing Out of Rise in Stock Prices.
As Chairman of the Committee on Investment Trusts.
Arthur H. Gilbert, of Spencer Trask & Co., Chicago, stated
that "the extent of the rise in stocks has led many into
unwise speculation . . . but it has at the same time
done a real service to the investors and investment houses
of the country in turning people's attention to sound values
In ownership." We give the report herewith:
Through the medium of the official Bulletin, we have endeavored to
keep the membership fully informed regarding any new legislation enacted during the year. Through this same publication you have been
advised of the important decisions handed down by the higher courts in
the Idaho Highway and Louisiana Road District cases. Several weeks
ago the United States District Court for the Northern District of OklaThe work of the Sub-Committee on Investment Trends does not deal
homa handed down two decisions involving Oklahoma Funding Bond issues
which were favorable to the holders of these securities. These do not with matters of as immediate daily interest as some of the other subtowards
progress
represent
but
involved
question
definitely settle the
committees having to do with business problems. This year, however, it
(nal determination of situations that have been in litigation for several seems worthwhile to mention certain phases of the investment business to
years.
which members of the I. B. A. have already had to give attention and
The early part of this year our attention was called to a suit instituted which, to a certain extent, are bound to affect the present and future
of
validity
by the Memphis & Charleston Railroad Company in which the
conduct of their businesses.
the organization and a bond issue of Oldham Road District of Tishomingo
The first of these matters is the very active stock market which we
important
decidedly
is
litigation
This
attacked.
were
Mississippi,.
have had for the past many months. This is something on which pracCounty;
since it Involves the constitutionality of the Mississippi Road District Act tically everyone of our members has had to make a decision. They have
and-,10 similar in many respects to the famous Archer County, Texas, case. either had to adapt themselves to it and go with the current of the times
A.,decision :favorable to.the. District was handed down in the lower court. to a certain extent, or they have had to adopt an attitude of paying as
Tbe-ease, hoseevert,..has been appealed to the Supreme Court of the State little attention to it as possible. When it is said that members have
and will be tried later. The Association has made an appropriation to adapted themselves to the stock market, it does not mean that they have
defaay the-cost of employing counsel to watch this litigation and to assist deserted investment for speculation, but that they have made the most
in ,theoproper presentation of the points involved to the Supreme Court. of the investment features of the recent markets. In the early days of
.,Anethes,cusee e• importance involving a proposed issue of bonds of Road the I. B. A., investments meant bonds and it was a long time before the
aud,J1ridge Ilistrict .No. S of Jackson County, Florida, has been appealed members came to the point of view that ownership in properties had
frons.tile Qircuit to the Supreme Court of that State. This is also an its place in the investment field alongside of the loaning of money on bonds.
attack on the Florida Road and Bridge District law. The Attorney Gen. It is only a few years since the book "Common Stocks as Long•Term Ineal,of .the State is handling this litigation and is getting all the assistance vestments" called people's attention to the same thing. It is only a comnecessary from -prominent local attorneys.
paratively short time ago that the investors were reluctant to depart from
This Committee is definitely and firmly committed to the principle that their principles to the extent of buying even utility preferred stocks. The
the
upon
restriction
a
places
no. situation! is sound or satisfactory that
extent of the change which has taken place may be marked by the fact
ansount of, taxes that can be levied and collected for the payment of that nowadays preferred stock in any corporation is difficult to sell unless
munkcipal, obligations • .This and preceding committees have made many it has a convertible clause, or purchase warrants attached, or some feaattempts to eliminate- the tax limitation provisions in existing municipal ture giving it something of the common stock aspect. A great deal of this
bond! codes: • Unfortunately, our efforts in this direction have not been has come about as the result of conscious work on the part df banking
entirely .successfnl. This is due, in a large measure, to the fact that, all houses over a series of years, but it has been emphasized and brought to
ether things being equal, it has been possible to market limited tax bonds a head particularly by the events of the last few months in the stock
on. practioally.the same basis'as the obligations of municipalities in which market.
The extent of the rise in stocks has led many into unwise speculation,
such .restrictions do not exist. Under the circumstances, we have been
handicapped- greatly, in our effort to convince several of the legislative which, of course, is entirely outside our field, but it has at the same
time done a real service to the investors and investment houses of the
bodies. that the changes we recommend were necessary or profitable.
A recent amendment to the banking law of New York increases the country in turning people's attention to sound values in ownership. It
number of, unlimited tax obligations available for the investment of sav- also, in a somewhat exaggerated way, has called people's attention to the
ings banks in that State. It clearly discriminates, however, against lim- fact that getting their money back at the end of a fixed term is not all
ited -tax, bonds and further provides that: "No obligation issued after there is to intelligent investment.
As has been said above, every house has had its choice either to include
the year nineteen hundred and thirty-eight by any city, county, school
distnict or. other municipality shall be an authorized investment for the in its service advice on stock investments or to stick to bonds. If it
other
or
district
to stick to bonds, it found that many of its investment customers
chose
school
county,
moneys of savings banks unless such city,
municipality,shall have power to levy taxes on the taxable real property were putting part, at least, of their money into what they considered
therein for the payment of such obligation without limitation of rate or sound stock values and were doing business with the houses that could
amount,'" There is written into this law the result of many years of give them advice as to where such values could be found. If they chose
experience in the safe and intelligent regulation of investments. It is to offer their investors service on stocks, they found themselves obliged
thee strongest recognition of the position the Association has taken for many to set up considerable equipment for studying companies and estimating
years on limited tax obligations. The example set by New York w:11 values. It was not an easy choice, and there was by no means universal
undoubtedly be followed by other States with the result there will be a agreement as to which choice was better.
From the investor's point of view, if he kept his head, and did not
material increase in the cost of financing improvements in the municispeculate, he added to his list some sound common stocks, and has seen
palities .operating under laws in which there are tax restrictions.
them
attorneys
bond
increase in value to a gratifying extent. He has been able to find
to
It is the purpose of this Committee to recommend
that:they include, in. their opinions a statement to this effect when bonds various houses who have made special studies of various companies, and
ice ,payalile.from limited taxation. Any other course would be, in effect, can at least show him what industries are sound and what managements
are skillful. Such houses do not encourage him to put more than a reaa..misrepresentation of the character and value of the security offered.
,Thc.President of the Association has charged the Chairman of this Com- sonable proportion of his funds into comomn stocks, or to trade on marmittee with .the responsibility of examining each municipal bond circular gins, or to play an in-and-out game. The results from the recent market
sent to him for this purpose and further to report to the Board of Gov- have been almcst disconcertingly good—but the principle seems to have
erisors, any. alleged violation of an established principle of better practice been pretty well established that regardless of extraordinary markets there
which may have been brought to his attention. It is rather refreshing to will always be some well-run companies whose stocks deserve the confireport. that we have found very few cases of wilful misrepresentation. It dence of genuine investors.
One more point of view is that of individual salesmen. These men are
,apparent,- however, that a large proportion of the members is not
aware of the, fact. that the Association has approved and printed in mostly trained to sell investment securities. It has been demoralizing te
pamphlet form a set of requirements that should be adhered to in the them to find so many customers who only wanted to talk stocks. The salespreparation of tnunicipal bond circulars if we wish to provide adequate man has had a choice of attitudes to take, depending somewhat on the
and accurate information on the security offered. These, if followed con- attitude of his house. 1. He could consider that the stock market was
sgentiously, will, without question, eliminate many unsound practices none of his affair, or 2, he could broaden out to know something about
that custom, carelessness and competition have developed in the municipal stocks and be of some use to his customers in advising them on the inVeld It is no longer good business or safe to operate on the principle vestment aspects of the stock market. Undoubtedly, the recent markets
that careless method can be employed in offering municipal issues on have broadened many salesmen and made them more valuable to their
account of the very high investment rating suet' securities enjoy. Our firms and their customers.
A very important recent influence has been the growth of investment
remarks on this subject can be properly regarded as a plea for the adoption of standards in the conduct of the municipal business that adequately trusts, and the investment trust type of investing. This may take the
form either of actual collateral arrangements for the benefit of security
reflect Abe high. standing of this type of security.
The increasing costs and lower margins of profit in the municipal busi- holders, where all the security holders share in the same group of inness emphasize the necessity of eliminating all practices that unnecessarily vestments—or, of co-operative investing, where an investment trust, or
add to the expense of'operation. In recommending to municipalities the investment counsellor, or law firm or other investing agency acts as
adoption of an uniform method of figuring split bids and one that carries buying headquarters for large numbers of clients, purchasing for each
the Approval of the. Association, we had in mind that this would do away client what seems most suitable and getting the benefit of organized fawith the necessity of having a representative of every joint account on cilities for investigation, and of being able to purchase in large volume.
From the point of view of the existing dealers, this makes a mixed picthe ground, to cover important saales and thus save the members a very
considerable sum of money each year. Constructive work of this character ture. It concentrates buying power to a certain extent, and makes poswill not accomplish its purpose unless we exclude many buying practices sible large sales at small expense. Also, the investigating and research
that are merely an inheritance from other days when recognition of the ability of such investment trusts or buying groups makes them unusually
rights of competitors was not regarded as good business. Bad feeling has intelligent investors who buy more on facts than on sentiment or speculative
been created in a number of insta !cat by the use of tactics in competitive opinion. On the other hand, the investment trusts are not unaware of the
buying situations that must create • umful reactions in the minds of :miblic advantages that their buying power gives them and many of them want
Nov. 3 1928.]
FINANCIAL'CHRONICLE
price conceasions or other special consideration. It is probably safe to say
that most, of these large-scale buyers would have their natural business relations.. with the large dealers and banking institutions, whereas many of
the individual clients would naturally do business with smaller distributors. ,
Many nvestment houses, also, will find themselves hard put to it to
match the investigating ability of many of these investment trusts and
groups. The average so-called statistical department will find that average work in consulting manuals and arranging figures falls far short
of the requirements of these buyers, who form their own conclusions
on personal investigation of situations and intimate knowledge of fundamentals. The outcome should be a grading-up of the investigating work
of the dealers and perhaps a concentration by each dealer on a few situations rather than an attempt to supply facts and opinions about everything. But this will probably be brought about only by greater expenditure
on the Investigating side of the business and an addition to the so-called
"overhead" which will bear heavily on the smaller or less successful
From the customers' point of view, however, this development should be
a good thing. If he wishes to confine himself to the investment trust or
Investment group, he will probably get more breadth of investment and
greater return and chance for appreciation than if he put his money in
trust in a banking institution—and, although their outlook may not be
so broad as that of the investment banker, the recommendations will
probably be the result of able and impartial investigation. On the other
hand, if he does his business through a dealer, the dealer's standards of
investigation will be all the better for the high standards set by the
investment agencies.
During the last two or three years, partly as a result of keen competition, partly as a result of I. B. A. discussions, there has been apparently increasing interest in the investment business as a business. Questions of capital, organization and distributing and overhead expense and
selling policies have been much under discussion, probably more than has
been realized even by the average dealer. In a discussion of tendencies
In the business, while this is not the place to go into details, it is proper
to speak of this as one of the most important developments—a constant
study of the business, and an honest attempt to improve each dealer's
own situation and also his relations with other dealers and with his customers. ,
This. is a tendency that would have been brought about probably In
any case by keen competition and by the growth and increasing maturity
of the business, but such study is bound to have far-reaching and favorable
results and it is gratifying to the I. B. A. to feel that it has helped to
stimulate and to assist in this work.
Respectfully submitted,
SUB-COMMITTEE ON INVESTMENT TRENDS.
2467
The question of whether or not there should be regulation and If so
what form It should take is an exceedingly difficult problem and your Committee is in full sympathy with those gentlemen who as Securities Commissioners of the various States are trying to reach an answer to these
two important questions. We have met with many of then, have exchanged view with them, and are convinced that in all cases their object
is identical with ours; that is to say, they are trying to protect their
investors, to encourage the soundly-formed and well-managed Investment
Companies, and to make it difficult if not impossible for unworthy ones to
exist In considering any regulation it must also be borne in mind that
if an individual or group of individuals desire to be dishonest the Investment Company field is not only the only one open to them. It has
been pointed out that it is perfectly possible for the managers of an
Investment Company, if they are so inclined, to purchase securities for
their own account and subsequently sell them to the company at a profit
to themselves. Is it not equally possible for the executives of a cotton
mill or a rubber company or a steel company or many other types of
companies to make a profit for themselves on materials purchased by the
Company? We are convinced that there has been too much of a tendency
to put Investment Companies in a sort of rogues gallery and to imply
that dishonest individuals will desert all other fields for this ene.
We mentioned above various conferences we have had with the Securities
Commissioners of the different States. We believe that these conferences
have been constructive and while neither they nor we have been able
to arrive at a specific form of regulation which would cover the situation
satisfactorily, we are heartily in accord with many of the general conclusions reached by a Committee of the National Association of Securities
Commissioners especially appointed to study Investment Companies and
recently enunciated by their Chairman, Jesse V. Craig, Securities Coramissioner of Nebraska.
We feel that the principal purpose of any sound form of regulation
to-day should be, primarily, to assist the investor in distinguishing good
companies from bad ones, and, secondarily, to give the State authorities
power to investigate and prosecute companies of a doubtful nature. In
other words, there are two phases of the situation which must be borne
in mind when considering regulation, one covering the issuance and sale
of the securities to the public and the other covering a means for subsequently safeguarding the public's interest in such an investment.
In connection with the first phase, it would seem proper to us that
the management should be required to disclose in their prospectus the
following:
I. Complete list of officers and directors.
2. The outline of the plan of capitalization.
3. Whether the securities offered are secured by any lien or represent merely a
general debt.
19 4. Whether there are in existence any liens upon the assets.
5. What restrictions, if any, exist regarding the Investment powers of the maneaether audited statements will be published and, If so, how frequently, and
to what extent information will be released.
Report of Investment[Trusts] Companies' Committee-Opposition Voiced to Legislation Barring Honest
Management from Legitimate Fields—Favors Conferring on State Authority Powers of Investigation.
,
.
Because, of the fact, that the term' "investment trusts" is
considered a. misnomer, the Investment Trusts Committee
of the Investment Bankers' Association has changed its
name to the "Investment Companies Committee." The report of the committee at the annual convention of the Association was submitted by the Chairman, Charles D. Dickey, of Brown Brothers & Co., Philadelphia, who, in setting
out the conclusions of the Committee, said:
Our general conclusions as a committee are that as a committee we are
at present distinctly opposed to any legislation which will provide a form
or standard which unreliable managements may comply with and thereby
use as a cloak to gain public confidence. We are opposed to legislation
which hampers honest and able managements and precludes them from
legitimate and profitable fields. We are in favor of establishing either
through leadership, custom or by regulation, if necessary, the practice of
furnishing to investors and prospective investors information which will
enable them to judge the management and to know what to expect; and
if management is to be supervised we are in favor of accomplishing this
by giving to the proper State authority such powers of investigation as may
be necessary to prosecute promptly unworthy enterprises."
The report (unanimously adopted) follows in full:
In previous reports your Committee has pointed out that the term
"Investment Trust" is a misnomer. On this account we have changed the
name of our Committee from "Investment Trust Committee" to "Investment Companies Committee" and we hope that members will follow along
with us and avoid, whenever possible, the term "Investment Trust." This
may seem like a small point to many, but actually it has given rise
to considerable misunderstanding. We need hardly point out that the
term "Investment Trust" came to us because of its use in Great Britain
and on the Continent of Europe over a period of some forty years and
that it was not deliberately picked out in order to inspire public confidence or to imply anything analogous to trust companies or trust funds
as we generally speak of them. We are concerned with companies organized to invest and reinvest money and let us therefore represent them
at face value and call them "Investment Companies."
During the period covered by this report there has been continued
growth and development of the Investment Company as a factor in the
financial world. Hardly a week goes by without either the organization
of a new one or the offering of some securities to facilitate the expansion
of those already in existence. Generally speaking, your Committee feels
that the growth has been sound and healthy; that for the most part the
managements are made up of men of integrity and ability, trained in the
field of investment, and from a study of the type of investments made
(where this is possible), it would seem that these men recognize the
responsibilities they have assumed. These signs are indeed encouraging,
but they are indicative only of a general trend and are not sufficient to
permit this Committee to make a report without repeating emphatically
that an Investment Company is no better than its management and this
management must be scrutinized from the point of view of both character
and ability.
At intervals during the past few months there has been considerable
agitation for regulation of •Investment Companies in the various States.
So far, very few States have taken any specific action; on the other
hand, fully twenty States are considering the matter carefully.
If the second phase of the problem, namely, the Continuance of some
sort of supervision is to be regulated, it would seem to your Committee to be best covered by giving to the proper authority, whether it be
the State Securities Commissioner or the Attorney-General, broad powers
of investigation. Along these lines, the State authorities should have
the power to require the furnishing of earning statements, balance sheets,
or other information pertaining to the financial condition or management of Investment Companies. Periodic audits by independent auditors
should be required and the names of the auditors disclosed. If, as a
result of such' investigation, it appears that an Investment Company is
not conducting its business in accordance with law, the Securities Commissioner or the Attorney General, as the case may be, may then bring
an action against the Company or its management.
Your Committee are aware that the above suggestions give considerable
latitude to those in charge of the supervision, but if we accept the theory
that management is the one really important factor in differentiating
between Investment Companies, then no form of regulation can be effective which does not require careful scrutiny and intelligent investigation
on the part of those administering the law.
There is no question but that organizations which come under the head
of Investment Companies are far better understood by dealers, investors
and State authorities to-day than they were a year ago. They have been
much discussed and many articles have appeared concerning them. As
we have previously pointed out, the general development has been along
sound and conservative lines and while bad practices occasionally appear,
they are the exception rather than the rule. The policy of existing
companies regarding publicity has differed widely. While recognizing
fully that in some cases good reasons exist for companies not publishing
complete lists of their holdings, your Committee are still of the opinion
that the further managements can go in giving investors information on
which they can intelligently base an opinion, the less need there will
be for legislation. It has been argued that so tong as an investor knows
when he makes his initial purchase whether he is buying into an investment company which agrees to publish its detailed list of holdings periodically, or is buying the securities of a company which does not give such
information, he can form his own judgment as to whether the character
and integrity of the management of the second is such that he is willing
to invest even though he will receive no such detailed information. We
agree in many ways with this argument, but we would at the same time
point out that the less information a management gives out the snore
responsibility it assumes. Such publicity as is given should be designed
to show an accurate picture and misleading statements should be carefully avoided. We have noticed a tendency on the part of some investment companies to issue earning statements for a short period such as a
quarter or a half-year, stating that during this period the company's
net earnings was so many dollars, equivalent to a certain number of dollars
per share on their common stock, without stating how much of these
earnings came from income and how much from trading profits. It can
be readily seen that such a statement is often misleading. The company
may have taken large profits during the short period of which there is no
likelihood of a recurrence, but the public are tempted to convert these
earnings to an annual basis and with the resulting figure in mind to
capitalize the value of the shares. We believe that audited balance
sheets and statements of earnings should be given out either annually
or semi-annually and that these should show how much of the earnings
was derived from income, how much from trading profits, what expenses amounted to, and whether the market value of the investments
is above or below the book value as shown on the balance sheet. Many
companies have gone much further than this, but we believe the above is
the minimum to which investors are entitled.
Much has been said as to whether or not managements sahsoulpdvib
ile
percipals
mitted to deal directly or indirectly with themselves
Your Committee feels that this is a debatable question and is
not prepared
2468
[VOL. 127.
FINANCIAL CHRONICLE
charaoter of
of the bill as first introduced. Having in mind the
be precluded by regulation, but study
the District
to recommend at present that it should
legislation applicable to the form of Government for
such
be
may
privilege
or
power
this
the comparatively
feel that it 'should be pointed out that
of Columbia, conditions lout] to that jurisdiction and
interests
the
has
which
management
a
extremely valuable in the hands of
affected by such legislation, suggestion)] of amendments
and is in a position to use small area to be
of the company uppermost in their minds
original measure were made. Later a new iym was
the
to
revisions
or
considered
should be most carefully
but
it properly. On the other hand, it
part based upon the bill as originally introduced,
large
a
to
prepared,
any
is
there
whose character
mentioned. This latwhen it is accorded to a management about
having incorporated therein the suggestions above
author and those responsible for the original
doubt whatsoever.
which have been ter draft was accepted by the
now, before the natiqnal conThere are other practices of a questionable nature
payment bill as a proper substittne and because
the
example,
For
subject.
this
on
printed
alluded •to in articles
grece.
seof investment company
of the Martin
of excessive commissions for the marketing
The bills now pending embody the essential features
isolated cases of
features for
curities. Our study indicates that while there are
Act of New York, but also includes the registration
Fraud
inother
in
than
cancellation for cause.
this and other evils, they are no more frequent
dealers and salesmen with powers of suspension or
responsible
with
companies
dustries. On the other hand, investment
what now well may be designated as standard exemptions
considerable investment It also includes
backing, where frequently the management has a
application of the law for a preferred class of securities
otherwise
the
from
our attention leaned
in the company, have in moat cases that have come to
in securities.
transactions
and
of
expenses
the
over baekwards towards keeping the cost of financing,
investment Trusts.
management, Arc., at a minimum.
more
at present disare
we
Committee
year the so-called investment trusts have been of
Our general conclusions are that as a
the
During
form or standard
interest. Early in the year there came on the horizon
tinctly opposed to any legislation which will provide a
ordinary
than
thereby use as a
for legislation
which unreliable managements may comply with and
numerous suggestions in the nature of a popular demand
legislation which
instances this decloak to gain public confidence. We are opposed to
specifically relating to investment trusts. In some
legitimate
alone
from
applicable
hampers honest and able managements and precludes them
on the nature of providing a separate statute
either through mand took
Intrusts, their supervision and regulation. In certain
and profitable fields. We are in favor of establishing
investment
to
of furof these suggestions was such that, if crystallized
leadership, custom, or by regulation if necessary, the practice
character
the
stances
which will eninvestment
nishing to investors and prospective investors information
would have the effect of precluding the recognition of
expect; and if into law
able them to judge the management and to know what to
trusts in any form or under any circumstances.
by
this
g
accomplishin
National Association of
management is to be supervised, we are in favor of
During July of this year a committee of the
as may
subject of investgiving to the proper State authority such powers of investigation
Securities Commissioners, appointed to investigate the
a portion of their
be necessary to prosecute promptly unworthy enterprises.
ment trusts, went to New York and there prosecuted
that committee
Respectfully submitted,
investigation. Through the courtesies of the Chairman of
disposal some
CHARLES I). DICKEY, Chairman.
your field secretary was able to assist in potting at their
with a vast
of the contacts and sources for investigation which, along
sources,
amount of material and information gathered by them from other
of
investigation
e
enabled that committee to make an unusually thorough
Report of Securities Division of Legislation Committe
Nothing has been more encouraging of the spirit of
matter.
subject
the
Sound
ing
Formulat
of
ty
Probabili
—Doubt as to
constructive
constructive co-operation than the thorough and soundly
Legislation Relating to "Investment Trusts" Alone. attitude manifested throughout that week of research. From these activithrough an address delivered by the
The subject of investment trusts was discussed in the ties have come certain suggestions
at their annual convention in AuCraig,
Mr.
of
that
committee,
Chairman
Report of the Securities Division of the Legislation Com- gust which it would seem are very worthy ef study as a basis, through conSecretary structive criticisms and counter suggestions, for ultimately arriving at a
mittee of the I. B. A.—Arthur G. Davis, Field
con- most plausible form for any needed supervision or regulation. One eleof the Association, presenting this report at the annual
ment of considerable value growing out of the study of possible legislation
element
"One
that
statement
the
made
Field
Mr.
vention.
incident to an investment trust is the final and almost unanimous conpossible
of
study
clusion that to formulate a legalistic definition of "investment trusts"
of considerable value growing out of the
with the several forms and applications,
legislation incident to an investment trust is the final and as now used in this country
such as to be both sufficiently inclusive and exclusive, is quite impossible.
legala
formulate
to
that
and almost unanimous conclusion
In fact, the beat authorities with whom your field secretary has conferred
istic definition of 'investment trusts' as now used in this during the year say that such is impossible. This alone raises a very
barrier to the probability of ever formulating sound and satiscountry with the several forms and applications, such as to substantial
legislation in the form of a statute relating to "investment trusts"
factory
imquite
be both sufficiently inclusive and exclusive, is
alone.
possible. In fact, the best authorities with whom your
Field Secretary has conferred during the year say that such
is impossible. This alone raises a very substantial barrier
to the probability of ever formulating sound and satisfactory legislation in the form of a statute relating to 'investment trusts' alone." We give Mr. Field's report herewith:
New &Olen**.
The legislatures of only ten States have been in session during this
period. Of these only two, viz.: New York and Virginia, enacted amendments to the laws respecting the sale of securities.
In New York an Act was passed amending the Martin Fraud law which
abolished the designation of a "State paper" and in tieu thereof provided
for the publication in the "State Advertising Bulletin" of security-dealers'
immediate notices. By these amendments beginning with July 15 of this year arid
In addition to matters routine in character and other than
period on the 15th of each month thereafter the Department of State at Albany
legislation problems, there came up for consideration during the
of is directed to publish a monthly Bulletin to be known as the "State Addeemed
be
well
may
which
subjects
three
since our list annual report
con- vertising Bulletin." The Department is then required to print in that
investigation
Commission
Trade
Federal
the
are
These
major interest.
and
the District bulletin such notices, orders, dm., as heretofore have been authorized
cerning national securities legislation, securities legislation for
which are ininvestment directed by law to be published in the State paper, among
of Columbia, and agitation concerning legislation respecting
mailed
be
must
this
bulletin
of
cluded securities dealers' notices. Copies
trusts.
to each department of State Government and also to any person making
Federal Trade Commssion Investigation.
request therefor without charge. Section 358-E of the Martin Act, as
letters amended, provides that dealers in securities shall file with or forward
Early in October 1927 the Federal Trade Commission sent out
con- by registered mail to the Department at Albany all notices theretofore reof inquiry in the nature of interrogatories requesting information
quired to be filed with or mailed to the publisher of the State paper.
cerning:
In Virginia a rather comprehensive set of amendments to the securities
that have been
provisions
those
ly
laws—especial
sky"
"blue
State
of
Results
(1)
law of that State were enacted and were approved March 28 1928. Among
most effective in practice.
and rather novel features. The
(2) The weaknesses of State "blue sky" laws and regulations.
and the these amendments appear some innovations
(3) The advisability of a Federal law regulating the sale of securities
principal ones of these are as follows:
kind of law necessary.
(1) By Section 3 of the Act, as amended, it is undertaken to enumerate
(4) Any further information which might be had on the subject matter of the
specifically by description the several classes of securities and the several
nquiry.
the operation
When these interrogatories officially came to this association through classes of transactions in securities that shall be subject to
its officers, counsel was taken with the President, the Executive Vice- of the law.
sevBy Section 4 of the Act it is undertaken to specify by definition various
President, the Advisory Committee and the Committee Counsel, on the
the classes of securities and transactions that shall be exempt from the aperal phases of that inquiry. Information was gathered from among
of plication of the law. These two sections taken together depart from what
membership such as was calculated to indicate the consensus judgment
the Asso- has now become almost a standard method, viz.: that of providing In
the Association. A reply was then formulated on behalf of
whatsoever slims
ciation, its officers and attorneys and forwarded to the Trade Commission the first instance for the law to cover all securities of
Bulletin or description, and then by the exemption section to eliminate from the
on November 29th, 1927. This letter was printed in full in the
a part of this regulatory features of the law those classes of securities in that section
of February 29, 1928, to which reference is made as
specifically defined and classified. Unless one is to presume, for the sake
report.
by the Com- of safety, that all securities not specifically exempted under Section 4
It is known that a great deal of testimony has been taken
from
out
sent
in the Virginia Act are intended to be brought under the Act by definimission on the subject of inquiry through investigators
con- tions and classifications in Section 3, it then becomes necessary to minutely
Washington, but no definite information has been made available
examine the several descriptive classifications in Section 3 amounting
cerning conclusions reached or probable report by the commission.
of an important bearing to fourteen in number. Otherwise one has no assurance that securities
Such report, whet made, has the possibilities
by all to be offered are or are not under the act. In connection with these two
on the subject of national legislation deserving careful thought
sections are provisions which appear to be distinct innovations in securisections ef the country.
ties legislation in this country. These are a provision investing the ComProposed Legislation for the District of Columbia.
mission with authority to determine in specific cases whether a particular
congress efforts security or transaction in securities does or does not come within the
Through a bill introduced is the Senate of the national
preventing of fraud re- terms of the definition of the class of securities or security transactions
have again been made to provide legislation for the
This matter is subjected to the law and to issue a certificate to that effect, and then a
specting the sale of securities within the District of Columbia.
and the counter provision whereby the Commission may issue certificates in spenow before the Congress in the form of identical bills in the Senate
Bill No. 3901, cific cases as to whether a particular security does or does not come
House, the former introduced by Senator Capper as Senate
by notification. It appears
and the latter introduced by Congressman Denison, as H. R. 12731. This within the provisions requiring registration
some demand that by those two provisions a great deal of authority for judicial determovement appears to have been set in motion in response to
for legislation of that character, in that jurisdiction. Members of this mination is vested in the Commission.
(2) A provision particularly novel and inviting careful considerasituation seem
Association as well as other parties conversant with the
the Act, as amended. This proto recognize this demand and to conclude that some such legislation for tion is that contained in Section 4-31 of
any security if sold by registered
the District of Columbia, in an effective and workable form, is both rea- vides for an exemption in the sale of
respect and by these amendments
sonable and desirable. In response to a suggestion from the Chairman dealers under certain conditions. In this
done in any State. The
of the Legislation Committee of the Southeastern Group, this Department Virginia has gone farther than has heretofore been
follows:
with the aid and assistance of committee counsel, Air. Keyser, made a restrictions with respect to this exemption are about as
Nov. 3 1928.1
FINANCIAL CHRONICLE
2469
aggregates a larger amount for the period than for any
(a) The registration of dealers for the purpose of an exemption of capital provided
There is also to be noted a substantial insecurities sold by them is a special registration for that purpose and is previous similar period.
issuance of foreign shares, and it is believed that an inIn addition to the general registration of dealers required under the title crease in the
creasing demand for investments of this character may be expected. It may
of "promoters."
matter of interest that during the year the largest
(b) Such special registration for exemption purposes is limited to be worthy of mention as
domestic or foreign, which has ever been
dealers wit° have been in business in the State and who have had a regular public utility bond issue,
market,
was
that of a foreign public utility eompany.
offered in this
place of business in the State of Virginia for at least one year.
The general purposes for which capital has been advanced to foreign
(c) The exemption then is further limited to those securities where it
materially since America began its career as a
is shown the issuer receives not less than a fixed minimum percentage countries have changed
world banker. Reconstruction financing following the war may be said
of the proceeds of the issue being marketed.
with the possible exception of loans to Ger(d) Such dealers Ho specifically registered for the purposes of this to have been completed,
expected to continue for this purexemption are required to give notice to the Commission and a state- many, which may very probably be
pose for a further period.
ment disclosing the required facts.
There has been a marked increase in borrowing for public works
Dealers are not generally defined in the Atatute but for general purgeneral, is of a productive character and tend'
poses come under the terms of "promoter." All "promoters" are required which we believe, in
opening up of hitherto backward countries
to register or to be licensed without regard to whether they are in or towards the development and
part of our foreign financing
without the State of Virginia. The restriction as to residence is limited and undeveloped areas. A very substantial
to date has been through loans, but there is a growing tendency for
to Sec. 4-M, which provides for the exemptions above mentioned.
owned enterThis exemption as may readily be seen discriminates between the dealer American capital to seek ownership interests in privately
develophaving no place of business within the State and the dealer who does prises, as is evidenced by the mining, wood-pulp and power
maintain a place of business within the State. This discrimination is ments in Canada and the activities of the American and Foreign Power
International
Telephone
companies,
the
solely on the basis of residence or place of business and is not based Company and other public utility
upon integrity, business repute, financial responsibilities or other such St Telegraph Company and the International Match Company. In other
words, as we are becoming more experienced in foreign investment, we are
tests.
seeking to share in the growth and development of other countries as we
In General.
growth and development of our own. If the history of other
During the period since our last report your Field Secretary has at- did in the
countries in overseas investment points the way to us, we may prepare
tended two annual conventions of the National Association of Securities
increased ownership participation in foreign enterprises until
ourselves
for
Commissioner, one at Atlanta, Georgia, October 1927, and the other at
we find ourselves joining international groups in the development of a
Salt Lake City, in August of this year. By this means your Field SecreCape to Cairo railway or of a Belgian Congo.
tary has been afforded the opportunity of personal contact and interDuring the past year the progress of Europe has been noteworthy. With
views with a number of the securities commissioners with respect to the
return of Norway to the gold standard, all of the Scandinavian counproblems arising under the securities laws and particularly with respect the
tries are now on a pre-war basis. France has stabilized its currency withto their problems of administration. It is encouraging to note the conout
either a loan or the establishment of a bank credit in this market,
tinued and even increasing disposition of all parties concerned to recognize
which is a testimony of the inherent strength of the French economic situthe fact that there are difficult and even complicated problems on both
ation. Paris becomes again one of the centers of international finance,
sides; that is, by those whose duty it is to administer the several sewhom, as with other centers, we shall undoubtedly find ourselves
curities laws and by those whose business is affected thereby. The spirit with
co-operating
in world finance to an increasing extent.
of co-operation toward the solution of these problems and in the interest
the course of the current year the New York Stock Exchange
During
of mutual understanding is most assuring.
admitted to its listings the British 4% Funding Loan and the British 5%
Immediate Future.
War Loan, which represents the largest listings here since the United
During the coming year the legislatures of 41 States will be in session, States War debts. These listings are a signal instance of the growth and
opportunities
for
legislation
affecting
the
business of issuing, importance of the United States in world finance.
making 41
In a report of this character one must touch on the question of Gerselling and dealing in securities. For the most part, we need anticipate
no proffered legislation purposefully antagonistic to legitimate and sound man reparations and inter-Allied debts. Neither of these may be conbusiness. It is known, however, that efforts will be made in a number sidered as definitely settled. Until they are settled, and settled generously,
of the States to secure new legislation affecting the sale of securities either and with due regard for the welfare of the creditor nations, they will
in the form of comprehensive amendments to the present laws, or by way continue to be a menace to the economic structure of the world. While
of enactMent of new laws with the repeal of those now existing. Your your Committee does not consider it expedient for the Association to take
Field Secretary cannot too strongly stress the importance of the members any position in connection with these vexing questions, it does not hesitate
of the legislation committees of the respective groups having immediately to advocate that the members of the Association for their own interest,
in mind the problems they are very sure to encounter. Where it is defi- and the interests of their clients and of the country, take a lenient posinitely known efforts are to be made toward new legislation, it is most tion towards the rigid enforcement of our claims against the nations of the
advisable that as much as possible of constructive efforts toward sound world. Of immediate interest in this connection is the decision of the
and careful preparation be made prior to the convening of the respective large powers to appont a commission of experts to study the question of
legislatures early in January. We need not seriously fear any legislation reparations.
which is carefully and thoughtfully worked out. The most serious situaIn connection with the specific work of the Foreign Securities Comtions, from whatsoever angle viewed, arises from legislation conceived at mittee, all circulars describing the securities which come under its juristhe moment and hastily prepared or considered. Improperly constructed diction have been carefully inspected and no major criticisms of them can
legislation once enacted frequatly becomes more or less a fixture and is be made. It appears that the members of the Association are preparing
more difficult of correction than of careful preparation in the first their offering circulars with the care and intelligence which have been
instance.
acquired by experience.
Your Committee has followed certain legislation which has from time
[Report unanimously accepted.]
to time come up in Congress, but is glad to report there is nothing pending
of a nature to cause us concern.
The principal acitvity of the Committee is, of course, the supervision
Report of Foreign Securities Committee—German
the Institute of International Finance which was brought into existence
Reparations and Inter-Allied Debts in Remaining of
several years ago by Mr. Howard Beebe in co-operation with the New
Unsettled Constitute a Menace—Record Figures of York University. The immediate supervision of the Institute has been
delegated by your Committee to a subcommittee, of which Mr. Allan
Foreign Securities Issued in American Market.
M. Pope is chairman, and to whom the thanks of the Association are
his
report as Chairman of the Foreign Se- greatly due.
Referring, in
The fiscal year of the Institute ended Aug. 31 1928 has shown a great
-curities Committee, to the question of German reparations
increase in all of the activities of the Institute. It has published during
and inter-Allied debts, Joseph R. Swan, of the Guaranty the year thirteen bulletins on foreign countries, ranging
from twenty-four
Company of New York, noted that neither of these ques- to thirty pages, which have been in general standardized to include a
tions may be considered as definitely settled. "Until they consideration of the external and internal political factors affecting the
country, its agricultural and mineral resources, industrial progress, foreign
are settled, and settled generously, and with due regard trade, railway and hydro-electric development,
currency and banking, pubfor the welfare of the creditor nations," said Mr. Swan, lic finances, public debt (both external and internal), the history of
such
debts
and
the
status
of
loans
floated
in
continue
to
be
a
the American market.
menace to the economic struc"they will
During the year the Institute has continued to maintain close contact
ture of the world." Mr. Swan added:
with foreign associations of bondholders and has been in receipt of many
While your committee does not consider it expedient for the association communications from some of them. In at
least one instance the foreign
to take any position in connection with these vexing questions, it does not association has acknowledged the good offices of the
Institute in furtherhesitate to advocate that the members of the associations for their own ing the settlement of disputed questions
between bondholders and the
Interest and the interests of their clients, and of the country, take a borrowers, arising as an aftermath of the war. Such a
relationship between
lenient position towards the rigid enforcement of our claims against the the Institute and the foreign
associations is extremely beneficial to both
nations of the world.
parties and has resulted, and is expected to continue to result, in beneMr. Swan's report also dealt with the activities of the ficial co-operation.
During the year the Institute has increased its statistical staff to most
Institute of International Finance, and said that "during
its requirements, and has broadened its field of service to subscribers
Institute
has
continued to maintain close con- through additional personnel, who are available to reply to questions by
the year the
tact with foreign associations of bondholders. "Such a letter and by telephone. Such inquiries have increased greatly in numrelationship between the Institute and the foreign associa- ber during the year.
The Institute Committee has formulated a policy of planning several
tions," he said, "is extremely beneficial to both parties and months ahead, the order of the countries on which bulletins will be published
by the Institute. In each case, before a bulletin is published, it is
is
expected
to
and
continue
to
resulted,
result, in benefihas
submitted to the Committee for comment, and to such financial houses as
cial co-operation." Mr. Swan's report follows in full:
may have been identified with the financing of such countries. The comMr. President and Fellow Delegates of the Investment Bankers Association: ments of all interested houses are in every case considered, and
in case
Your Committee on Foreign Securities has to report to you a year of their comments are not to be embodied in the bulletin, they are
advised
very normal activity, though the interest of American bankers and in- of the reasons therefor. It can be very distinctly stated
that while
vestors in foreign securities has shown a considerable increase, which, everyone interested in each bulletin has an opportunity
to
express his
however, was to be expected, and under normal money conditions it is opinion in regard to such bulletin, the bulletins
themselves are prepared
anticipated will continue. During the first nine months of this year the in an entirely disinterested manner.
total amount of foreign securities issued in this market amounted to apThe Institute has increased the number of its subscribers from 270 on
proximately $1,330,000,000, exceeding all previous records for the period, Sept. 15 1927 to 486 on Sept. 15 1928, an increase
of 80%. Ninety-eight
nine
months
of
1927
by
over
first
and exceeding the
$200,000,000. It is per cent, of the previous year's subscribers to the
significant that financing for refunding purposes has shown a substantial their subscriptions this year. It is believed that all Institute renewed
investment bankers
increase, approximately 22.2% being for that purpose during the current and others interested in foreign securities who are
not familiar with the
year, while in 1927 the percentage was 11.9%. In spite of this the new work of the Institute of International rin.ance will
find that it offers a
FINANCIAL CHRONICLE
2470
to none in this country
medium of obtaining unbiased information second
it offers an opportunity
on the credit position of foreign countries, and
to decrease its own
for 'each 'Investmetit banking organization largely
are thoroughly understood
research work if the facilities of the Institute
and made use of.
last meeting to inThe Institute Committee has recommended at its
maintaining a record
crease the activities of the Institute to the extent of
is not known to be
of defaults of foreign' countries. This information
in this country.
tabulated with any degree of completeness in any one place
to be commented
The obviourt necessity for such a record scarcely needs
to-day in carrying
upon. The great difficulty which besets the Institute
certain that with
out this ambitious design is lack of funds, and it is not
maintained to do this
the present resources an adequate staff can be
all the members
if
work. This situation would doubtless be remedied
the Institute, and I
of the Investment Bankers Association should join
to themthink that your Committee can promise them resultant benefits
selves.
your ComIn concluding these references to the work of the Institute
is by no
mittee must express its feeling that the importance of this work
expense
the
At
Association.
means fully appreciated by the members of the
preparation at
of repetition we wish to point out that each bulletin after
which has
the office of the Institute is vised and corrected by every house
country under
at any time had to do with the issuance of securities of the
statistical
discussion, and it also carefully studied and corrected by the
through
organizations of the houses who are represented on the Committee
it has gone
their partners or officers, so that before the bulletin is issued,
organizathrough in most cases probably a dozen competent statistical
after a
tions, and the final tesult is a presentation of facts arrived at
Committee
most thorough study from a great diversity of angles. Your
their
of
nothing
feels that these bulletins are of a character second to
interkind and that every member of the Association and every banker
data
ested in foreign securities can hardly afford to be without the
of you
which the Institute provides. We therefore strongly urge such
who are not members of the Institute to give very serious consideration
only
to the payment of the small sum involved to become members, not
but
because of the income which will thereby accrue to the Institute
also most decidedly for your own benefit.
Dean
Your Committee wishes to commend in particular the work of
of his
Madden of New York University, Director of the Institute, and
assistant, Dr. Marcus Nadler, for the work they have done during the
past year, and we wish, also, fully to recognize that the present program
has been made possible only through the co-operation of the New York
University.
We have no definite recommendation or request other than those contained herein to make to the Association at this time.
Respectfully submitted,
FOREIGN SECURITIES COMMITTEE.
Charles R. Blyth
William Cahill
Bamaby Conrad
Ralph T. Crane
George C. Forrey Jr.
Charles F. Glore
George N. Lindsay
Robert Grant Jr.
Bowman C. Lingle
A. A. Greenman
John R. Longmire
J. H. Gundy
Allan M. Pope
W. Averill Harriman
J. J. Rudolph
Robert 0. Hayward
B. A. Tompkins
R. S. Hecht
Joseph R. Swan, Chairman.
Report of Legislation Committee—Virginia Securities
Law—Resolution Opposing Discrimination Against
Non-Resident Dealers.
Hugh W. Grove, of the First Wisconsin Company of Milwaukee, in his report as Chairman of the Legislation Cammittee of the Investment Bankers' Association, included a
resolution, adopted at Atlantic City on Oct. 15 by the Board
of Governors of the Association, registering opposition "to
legislation which discriminates between responsible and reputable dealers in investment securities solely on the basis
of their residence within or without the State enacting
such legislation, extending to resident dealers privileges
and opportunities for transacting business that are denied
to non-resident dealers." The report directed attention to
amendments to the Virginia Securities Law, passed in March
of the present year, which as a whole, said the report, "improve the functioning of the law, but unfortunately there
crept into the law some objectionable and apparently unnecessary features." The effect of a provision in the amended law, the report stated, "is discrimination in favor of
Virginia dealers and against dealers outside of the State,
excepting such outside dealers as maintain Virginia branch
offices." "The result," the report adds, "Is that it is practically impossible for outside houses to offer securities
other than exempt securities in the State of Virginia."
The report, together with the resolutions of the Board of
Governors, follows:
in charge of laws
The Legislation Committee, with its subcommittee
sale of securities, has again foland proposed legislation regulating the
last two years, to keep in
lowed the plan used by the committees in the
several States affecting
close contact with legislative activities in the
consists of a Chairthe interests of investment bankers. The Committee
Law Legislation, eighteen
man, a Vice-Chairman in charge of Securities
Committee consisting of
members and, in addition thereto, an Advisory
in the Legislative
five members, all of whom have had long experience
again subdivided
Committee's work. The United States and Canada were
to a member of the Cominto fifteen groups, and each group assigned
represented in the
mittee, who was held responsible for the group he
Committee with respect to
co-operation of that group with the National
arising in his
all matters affecting the interests of investment hankers
of the Association,
territory. Mr. Paul V. Keyser, Committee Counsel
and
legislation
national
of
has represented the Committee in all matters
bankers were
legislation for the District of Columbia in which investment
interested. In addition thereto, Mr. Keyser has worked closely with the
Field Secretary in all proposed legislation affecting the distribution
of securities.
127.
regular session this
In only ten States have the legislatures convened in
Was proposed or etikted 'afyear, and in these States very little legislation
fecting-the interests of members of this Association.
• ••
New York.
of the tax law with respect
provisions
the
In the State of New York
of unincorpoto the imposition of a 5% annual tax upon the net income
doing business in
rated foreign bankers and foreign investment bankers
tax -law was
the
740
that State were repealed by Chapter 103. By Chapter
of stock, should
amended by providing that the tax imposed on transfers
and delivery
not apply to transfers to a broker for sale nor to transfers
recommended
by a broker to his purchasing customer. Several measures
relating to the comby the State Department of Taxation and Finance
respecting
putation of certain corporation taxes, clarifying definitions
the case of certain
in
returns
franchising taxes, and requiring consolidated
Several laws were
real estate holding corporations, were also passed.
extending the
enacted at the last session of the New York Legislature
reference to promscope of investment for savings banks, particularly with
and tertrust
issory notes; gas, electric and telephone bonds; equipment
were proposed
minal bonds, and municipal bonds. Several other measures
of other
and some were passed, but these measures follow in the scope
report. Howcommittee work and it is unnecessary to discuss them in this
1928 which
ever, no laws have been enacted in New York within the year
of sound
in any manner interfere with the free and orderly distribution
and freeconduct
proper
the
securities or in any wise hamper or obstruct
dom of activities of the investment banker.
no
In the other States in which the Legislatures convened there was
bankers.
legislation passed which was of particular interest to investment
National Legislation—Norris Bill.
most radical
A bill introduced by Senator Norris proposed one of the
been proposed
changes in our constitutional form of government that has
This bill sought
by any measure offered in Congress for a great many years.
District
to greatly restrict and limit the jurisdiction of United States
United
Courts. In fact, with the exception of those cases where the
as
States itself was plaintiff, and a very limited number of cases, 'such
the
cases,
revenue cases, patent cases, copyright cases, and other special
away.
swept
been
have
would
jurisdiction of United States District Courts
An active campaign was made to oppose the passage of this bill in
Congress. The Board of Governors of this Association at its regular
meeting at White Sulphur Springs, West Virginia, in May, 1928, unanimously adopted the following resolution:
"Resolved, That we condemn the principles embodied in the Norris 13111 (S. 3151)
now pending in the Senate of the United States, as imperiling the security of property
rights and the protection which property rights now have under the Federal Constitution and which they always have enjoyed under the Federal Constitution. Even
be
if Congress were hindered by no constitutional limitation, we feel that it would
prevent
unwise in the extreme to take away from the Federal Courts their power to
protection
Invasion of rights guaranteed by the Federal Constitution and leave the
to the
of such rights to the State Courts. Past experience has proved that access
Constitution
Federal Courts for the protection of rights guaranteed by the Federal
safety.
investors'
to
essential
is
local
prejudice
against
and to protect non-residents
InvestIt Is a right which in the past investors have relied upon for the safety of their who in
ments and to now take away that essential right would be unfair to investors
their
invested
money."
they
the
at
time
good faith relied upon the right
AssoThe Association also worked closely with the American Bankers
Bar Asciation, and the matter was also communicated to the American
sociation, The Norris Bill failed of passage.
National Legislation on Fraud.
to
Practically every State in the Union has some form of law designed
protect its citizens from fraud and misrepresentation in the distribution of
securities. These laws do net or have not reached the unscrupulous
vendor who makes his offerings from without the State through the use
of the United States mail. This problem has been given serious study by
the Association for a number of years. It is difficult to conceive of a law
to be drafted which would be broader in its scope or more summary in
action than the so-called Postal Fraud Laws and Stop Order Law. These
two statutes, if vigorously enforced, would effectually curb the inter-State
traffic in fraudulent and worthless securities. This Committee firmly believes that all that is necessary is to expand the work of the Post Office
Department. This will necessitate an increase in the appropriation for that
department to enable it to increase the number of inspectors and to expand the solicitors' force by the appointment of additional attorneys, to
the end that the National Government can safeguard the mails and prevent them from being used as the means of defrauding the public. A
memorandum, with respect to this matter, prepared by Mr. Paul V.
Keyser, has been distributed through the Groups to the members of this
Association. This memorandum is as follows:
MEMORANDUM
With Regard to the United States Statutes Having Reference to the Transof Matter Relating to Schemes to Defraud,
Mails
the
mission Through
and Certain Suggestions with Regard to a Policy for Better Federal
Machinery to Co-operate with the Securities Commissions of the Various
States in the Effort for a Better Supervision of Inter-State Offerings
of Securities upon Fraudulent Representations.
13y Mr. Paul V. Keyser
Committee Counsel, Investment Bankers Association of America
I.
THE POSTAL FRAUD LAWS.
The criminal sections of this law make it a crime and provide a penalty for using
the mall in furtherance of "any scheme or artifice to defraud." (U. B. Criminal
Code, sec. 215; U. S. Code, Title 18. see. 338.)
The fraud order sections authorize the Postmaster-General to issue stop orders
forbidding delivery of mall and payment of money orders to any one found by him
to be conducting any "Scheme or device for obtaining money or property of any
kind through the mail by means of false or fraudulent pretenses, representations or
promises." (U. S. Rev, Stat.. 3929, 4041; U. S. Code, Title 39, sees. 259, 732.)
The fraud order sections have been in force since 1872. Until 1895 the fraud
order was confined to registered letters and money orders, but at that time it was
made applicable to all mall.
Prosecutions under the criminal sections are conducted in accordance with the
usual criminal processes by indictment and trial by Jury. These sections are punitive in character and, while punishing for crime committed, their enforcement unfortunately is too late to prevent the injury to the public, because practical difficulties of proof make it rarely Possible to successfully invoke the criminal sections
until after the public injury has occurred.
The theory of the fraud order sections is quite different. The purpose here is to
Provide for summary action that will give preventive results. The process Is administrative and action is possible Just as Promptly as the Postmaster-General is
satisfied that it is required by the public interests.
The results possible to be obtained by enforcement of the fraud order sections
are exactly in proportion to the vigor and efficiency with which those sections may
be enforced.
In administering the fraud order sections the Postmaster-General acts as a factfinding officer. His action is final, although it may be reviewed by the Courts where
it is abritrary or palpably wrong. The Supreme Court of the United States has held
that his action constitutes due process of law and is constitutional Public Clearing
House vs. Coyne, 194 U. S., 497.
ral.
The evidence may be anything that is satisfactory to the Postmaster-Gene
He is not confined to common law procedural principles, and he may act upon the
examination
to
open
laid
be
not
may
may
or
basis of an inspector's report, which
on the part of the persons affected by the order. The usual practice of the Departthe mails that
ment IS that when a complaint is received charging fraudulent use of
Nov. 3 1928.]
FINANCIAL CHRONICLE
complaint is referred to an inspector for investigation. If the report made by the
inspector recommends issuance of a fraud order that report and any accompanying
papers are referred to the Solicitor of the Department. Thereupon a notice to
show cause why a fraud order should not be issued is sent by the Solicitor to the
Person complained against. This notice specified a time when such party may
appear before toe solicitor and have a hearing on the question of whether a fraud
order should issue. Thereafter if the Solicitor is satisfied that the fraud order should
issue he Prepares and submits to the Postmaster-General a written memorandum
containing his findings as to the facts established by the evidence and his recommendation for the issuance of the fraud order. The fraud order of the PostmasterGeneral usually follows after such notice and hearing, although there is no specific
requirement in the statute itself for notice or hearing of any kind.
It is believed that the right to such notice and hearing ought not fairly be left
wholly to administrative discretion. Both justice and fairness NI °aid seem to demand that this ought to be a matter of absolute right guaranteed by the terms of
the statute itself. It would therefore seem desirable and it is recommended that the
statute be emended by the addition of some proper provision for a notice and hearing
of a kind at least substantially the equivalent of the present practice of the Department in this respect.
The latest figures available at the time this memorandum is being written (October
1927) show that during the past four years ended with the month of October 1927
the number of cases In which the Solicitor issued notices to show cause why fraud
orders should not be issued was only about 406.
On the other hand, during the three fiscal years of 1924, 1925 and 1926 the postal
Inspectors sought criminal prosecutions for fraudulent use of the malls by causing
the arrest of some 2,959 persons.
Their figures ahow that at the Present time criminal prosecutions are being sought
to a much greater extent than are fraud orders.
The reason for this condition may be found in the fact that at the Present time there
are not enough post office inspectors to handle fraud eases and at the same time
handle all Use other service matters they are required to attend to. Consequently.
Investigations of mall frauds ordinarily cannot be completed until after a fraud order
would be of little value so that in such circumstances practically nothing can be done
except to prosecute criminally for the offense committed.
At the present time the inspectors force consists of 525 Inspectors and 15 inspectors
In charge of divisions. Their duties are as broad as the whole of the post office
service and mail fraud eases constitute only one small part of their entire work as
will be appreciated upon examining the following table showing that in the single
year of 1926 (the latest figures available when this memorandum is being written)
this comparatively small corps of men was called upon to investigate and report
in a total of 108,946 cases of various kinds:
Loss, rifling, theft, damage and mistreatment of registered mail
11,499
Service matters—clerical and carrier needs, charges against employees, miscellaneous complaints
17,342
Burglaries, fires, accidents and other casualties
10,521
Mailing of fraudulent, obscene and other prohibited matter
7,196
Regular inspections of post offices (including auditing of accounts)
31,449
Investigation and leasing of post office quarters
481
irregularities
Parcel-post
27,000
Rural service
2,629
Claims for reward
227
Special matters handled under personal direction of chief inspector
602
24
attorneys and clerks, these Postal Fraud Laws could and would be vigorously enforced and would result in the saving of millions of dollars to the
American public. The members of this Association ire iiigehtlY'reqUested.te
get into communication with their respective Senators and Congressmen to
the end that they will lend their assistance in procuring this additional appropriation.
The Federal Trade Commission has been Making an inVestfgation with
respect to the advisability of a national law regulating the sale Of liectirities.
This matter will be discussed by the Field Secretary in his report.
The proposed legislation for the District of Columbia will alaO he die..
cussed by the Field Secretary in his report:
Virginia Securities Law.
•
The amendments to the Virginia Securities Law, passed
Hate!'of
the present year, as a whole, improve the functioning of that law, but,
unfortunately, there crept into the law some objectionable anq
aPParenlly,
unnecessary features. Among the exempted securities are any securities
sold or offered for sale by a dealer holding a dealer's licenie tihder the
law. The requirement for obtaining such dealer's license is..that •'isuch
dealer must be a regular dealer in securities and nanst.have been In business in this State for a period of one year prior to the date of his application for license as a licensed dealer under this act." The effect of this
provision is discrimination in favor of Virginia dealers.and against dealers
outside of the State, excepting such outside dealers as maintain Virginia
branch offices. The result is that it is practically impossible' tor outside
houses to offer securities other than exempt securities in the State or
Virginia.
Forty-six States have some form of law which .was enacted to protect
the public against misrepresentation, deceit and. fraud Ili the sale of securities. The clearly indicated purpose of such law is to protect.lhe
cent of the State. It is contrary to the recognized purpose of
such•legitlation that such law should become the medium, whether. intentional. or.
otherwise, by which unfair competition is accomplished by one class Of
dealers against another class of dealers. Classifications made by, such law
should be on reasons that have a legitimate, fair, just and reasonable
relation to the purpose of such legislation. It must be recognized as highly
undesirable that any State should discriminate between responsible and
reputable dealers solely on the basis of their residence within or without
the State, extending to resident dealers privileges and opportunities for
transacting business and denying the same privileges and opportunities to
non-resident dealers.
Total
108,946
This matter was referred to the Board of Governors and the following
The cost of the inspection service, as shown by appropriations over the past seven
resolution was unanimously adopted:
years, has been as follows:
Number
Travelling
Resolved, by the Board of Governors of the Investment Bankers Association of
Avg. Cost, Sal. &
ofInspeaors.
year—
Salaries.
Expenses.
Exp., per Man. America at a regular meeting of the Board held at Atlantic City, N. J., Oct. 15 1928:
540
1928
$2,012,975
That we are opposed to legislation which discriminates between responsible and
$479,085
$4,615
535
1927
1,952,900
reputable dealers in investment securities solely on the basis of their residence within
440,000
4,472
535
1926
1,775,000
or without the State enacting such legislation. extending to resident dealers privileges
445,000
4,150
1925
535
1,750,000
and opportunities for transacting business that are denied to non-resident dealers.
455,000
4,146
1924
535
1,714,200
We feel that special provisions of this kind inserted as part of general legislation
468,300
4,080
1923
485
1,545,800
enacted for the protection of the public against deceit and fraud, are an unnecessary
424,500
4,062
1922
435
and unfair discrimination against non-resident dealers. The mere tact of residence
1,390,000
447.000
4,223
in another State Is not a proper or fair basis for any presumption of fraudulent intenII
tions on the part of the non-resident dealer, and on the other hand the chief result
PLAN FOR A SPECIAL CORPS OF POST OFFICE INSPECTORS TO
of such discriminations is to create a condition of unfair competition by one class of
HANDLE FRAUD CASES.
dealers against another class of dealers. All classifications made by such legislation
As a policy for better Federal machinery to co-operate with the Securities Com- should properly be based on reasons that have a just, fair and reasonable relation to
missions in the various States in the effort better to supervise the offering
the true purposes of such legislation.
of securiSuch discriminations are also objectionable for the reason that they act as a barrier
ties upon fraudulent representations, all that is necessary Is to expand the work of
the Post Office Department. There should be a greatly increased use of the fraud to the proper distribution of so Ind securities, whereas it is essential to the growth,
order authority of the Postmaster-General. The present work of detecting fraud development and prosperity of the nation that investment funds of the Public shall
be free to flow in any natural channel when there is no fraud or deception and that
and seeking punishment for offenses after they have been committed should
be legitimate business wherever
continued vigorously. But criminal prosecutions require much
located shall have the opportunity of free access to the
Possible until after the public has lost its money. What is time and are rarely available capital of the general public in all parts of the country with the least
posneeded
is
more
preventive work that will deal with the scheme immediately that it
burden.
sible
has
begun and
Lt possible will prevent its consummation and save the public loss. been
We deplore the tendency towards such discriminations manifested In certain recent
In
order
to
accomplish this it will be only necessary to completely and adequately
legislation, notably that enacted during the early part of the present year by the
enforce the State
fraud order law.
of Virginia, and all members of this Association residing in any State where
Briefly, the plan would be to increase the number of
such legislation has been enacted or may hereafter be proposed, as well as members
inspectors
by
a
sufficient
number of additional men whose particular duty it would be
doing
business therein, are urged to use their influence to obtain the rereal of such
to aid in the enforce- objectionable
ment of the fraud order law. These men should be stationed in the various
provisions
districts enactment of any such at the earliest practicable opportunity and to prevent the
through the country to watch In their districts offerings
proposed measures.
of
securities
and
to report
to the Department for the information of the Solicitor's Office if they should
The best interests of the whole country should be recognized as of vital
have
reason to suspect that the offering was fraudulent. Their functions
would
be
to
importance
drafting
in
the
of proposed legislation. Unfortunately, some
act as a vigilance force as well as an investigating force. Their work would bring
them into personal contact with the "Blue Sky" bureaus of the States,
of our own members have apparently given scant attention to this fundabusiness bureaus, with banks and with other public and semi-public with better
mental principle when they were consulted with respect to local legislainstitutions
working to protect the public against fraudulent securities transactions.
By these tion. These instances are few, but they have not escaped the notice of the
means, by open newspaper advertisements, by
circulars and in other ways, the National Committees
of the Association.
attention of these men would be drawn to what securities would be offered
respective districts. They would not have to examine as to the value of the In their
As the Association has grown it has become necessary to create addisecurities
or to pass upon them, but they would only act in cases where they might have reason tional committees to which was
delegated a portion of the work originally
to suspect that the public is going to be defrauded.
It would be also necessary to expand the Solicitor's force by appointment of under the jurisdiction of the Legislation Committee. In some instances
additional attorneys whose especial duty it would be to handle the reports from
the there has been an overlapping of authority and a duplication of effort.
inspectors and to determine whether in the public interest a fraud
order
be Moreover, it is possible that the activities of one Committee may run at
Issued forthwith or whether additional investigation was required. The should
Solicitor's
office should co-operate with the inspectors in developing facts. That °Moe could cross purposes to that of another Committee and the interests of the
very well establish a questionnaire system. When reports should be
Association be harmed rather than helped. This Association has taken a
inspectors, if it seemed desirable in the public interest that the inquiry received from
very definite position with respect to certain matters with which it hail
be made with
a view to the Issuance of a fraud order, the Solicotor's office might require the persons
had to contend over a number of years. Theoretically, the jurisdiction
conducting the business under question to file a statement as
to
the
facts
and
circumstances with regard to the matters under inquiry, and for
that purpose forms of the "Legislation Committee" covers all laws and all proposed legislamight be prepared and used. The Solicitor's Office could also require
tion affecting the interests of investment bankers. Your Committee recomand information as deemed relevant and for the purposes of the plan other data
additional mends to the incoming officials and to the various committees
Investigations could be made by the inspectors if necessary.
that no
legislation generally affecting the interests of investment bankers be sponThe idea should be, in the instances both of the preliminary investigations
by the
inspectors and of the examination of cases by the Solicitor's Office, that
sored
or
opposed
without
consulting
the
primary
the
Legislation
Committee to ascerpurpose is to get quick action to the end that if the
scheme is fraudulent It may be tain whether or not the subject matter
has ever been before the Legislation
shut off at its beginning and before large public losses should have been
Committee, and, if so, what, if any, conclusions were reached with respect
Such a plan, of course, is capable of much variation and would be suffered.
experience. As a matter of fact, it is substantially the equivalent of improved by thereto.
the work now
done in New York State under the Martin Fraud Act.
More than a year ago the Legislation Committee joined with the LegislaI estimate that to attempt to carry out this plan there should be
probably 100 tion Committee of the Central
additional post office inspectors at a total annual cost for salary and
States Group in employing counsel to make
expense
of
approximately 1460,000. In addition, there should be at least 10 more
attorneys a study of the various State laws governing the investment of trust funds,
in the Solicitor's Office. These attorneys should be at least of the $3,800
class as insurance companies and savings banks. Numerous changes have been made
graded by the Reclassification Act. So that the total annual
approximately $500,000. Some additional clerical help might be expense would be in the field of investment since many of these laws were passed. Such
necessary, but the
cost would be nominal.
laws do not meet the requirements of the present time and in some
This Plan emphasizes the Proposition that it is the proper function as well as
instances do not contain proper safeguarding provisions.
Your Comduty of the Federal Government to safeguard the mails and prevent them from the
being mittee recommends that the succeeding Legislation Committee continue
used as the means of defrauding the public. Practically all of the Statse of the Union
by "Blue sky" laws now undertake some form of official protection
for their citizens this investigation.
against fraudulent securities transactions. The State authorities cannot,
The Chairman of your Committee desires to express his appreciation
handle offerings through the mails from points out of the State. Thehowever.
Federal of the ready response and spirit of co-operation of the
Government can effectively co-operate with the States by guarding the
officers of Use
Association and Chairmen of the various committees, and particularly
Fraudulent securities transactions in this country take place to a large extent bymalls.
the
mean
of the mails. Circulars and advertising matter now flood the mails in enormous members of his own committee.
quantities and as a result many people are being victimized. No reliable figures
Respectfully submitted,
are available as to what is the volume of these frauds. It is, however, distressingly
tremendous.
Hugh W. Grove, Chairman.
To carry out the plan for a complete enforcement of the fraud order law will require
Arthur H. Gilbert,
H.
E.
Atwood,
Colts Mitchum,
substantial appropriations for salaries and expenses for the men needed to do the
John P. Baer,
F. D. Glover,
D. W. Myers,
work, but that item of expense will be well Justified If the work results In savings
F.
L.
Oswald
Penwell,
Hemingway,
W.
Roy C. Osgood.
the
American public.
millions of dollars to
Francis A. Bonner,
George W. Hodges,
Geo. W. Robertson,
Dated, Washington, D. C., Oct. 28 1927.
T. Henry Boyd,
J. C. Hope,
Barrett Wendell, Jr.,
Respectfully submitted,
Edward Hopkinson, Jr., Matthew B.
George C. Cutler, Jr.,
PAUL V. KEYSER,
whitttesey:
Kahn I. Fosdick,
Jarrett,
J.
E.
James C. Willson,
Committee Counsel, Investment Bankers Association of America.
James C. Fenhagen,
Morris E. Knight,
Charles Bertram.
It is believed that if the annual budget of the Post Office Department
IA motion to adopt the report was seconded, and the report
was unani.
were increased by $500,000 to cover the expense of additional inspectors, mously accepted.)
FINANCIAL CHRONICLE
2472
Report of Government and
Farm
Loan
Bonds Com-
mittee—Treastrry Department's Policy of Adapting
Itself to Market Conditions in Issuing Certificates
Indorsed — Constructive Attitude of Farm
at
4%
Lean Board Toward Joint Stock Land Banks.
Referring to the issuance by the Treasury Department of
2% Treasury notes and 4%% Treasury certificates, the
1
4/
Government and Farm Loan Bond Committee of the Investment Bankers Association stated in its report to the
convention of the Association that "it seems undoubtedly
wiser to have the Treasury adapt itself to the going rates
for money rather than to encourage operations by which
money rates are kept low in order to permit Treasury financing at cheaper interest rates." The report also reviewed the situation as to the Joint Stock Land Banks, and
said "it in evident that at the present time the Joint Stock
Land Bankers regard their banks as having a genuine opportunity to grow stronger and to increase the confidence
of the public in their securities." The report adds that
"it is understood that the difficulties of the Joint Stock
Land Banks which tailed are being cleared up in an orderly
manner." The report submitted by the Chairman of the
Committee, Arthur H. Gilbert, of Spencer Trask & Co., Chicago, follows:
The principal event of the year in regard to Government bond financing
has been the redemption of the Third Liberty Loan on the maturity date,
Sept. 15 1928. The financing in connection with the redemption was
accomplished partly by exchange for new 3%% notes due 1932, partly
by a new issue of 3%% Treasury bonds due 1943, and partly by a new
2% Treasury certificates of indebtedness. Exchanges were of/
Issue of 41
fered on all of these issues. Commenting on the final redemption of the
loan, Secretary Mellon said that it:
Brings to a close the vast operations begun by the Treasury in 1927, which,in the
course of eighteen months, have resulted In the refunding or retirement of over five
billiOns of Liberty Loan bonds accompanied by Important reduction In interest
chargee. Of $5,204,000,000 of Second and Third Liberty Loan bonds outstanding
in February 1929, all but $20,000,000 will have been retired from sinking fund and
surplus. The balance have been replaced by bonds bearing 334% interest, by three
5-year notes bearing 33-i% Interest, all with maturity or call dates convenient for
sinking fund purposes and by short-term certificates, all maturing on quarterly
tax payment dales.
Recent newspaper comment calls attention to the fact that the Treasury
Department in its issues of notes has adopted the policy of accepting the
money rate as dictated by the condition of the country. The offering of
414% notes referred to above, and a more recent issue of Treasury certificates bearing interest at 4%% are examples of this change of policy. It
seems undoubtedly wiser to have the Treasury adapt itself to the going
rates for money rather than to encourage operations by which money
rates are kept low in torder to permit Treasury financing at cheaper interest
rates.
Early in the year, the attention of your committee was called to the
activities of the Joint Stock Land Rankers Association, a new organization
formed to further the interests of the Joint Stock Land Banks. Members
of this committee met with the Executive Committee of the Joint Stock
Land Bankers Association and received a very interesting account of a
meeting which the Land Bankers had held in Washington, at which they
had had close contact with the Farm Loan Board. Two things were emphasized in this meeting, first, that the Farm Loan Board was taking a much
more constructive attitude toward the activities of the Joint Stock Land
Banks, and, second, Joint Stock Land Banks, themselves, thoroughly realize
that they are to be judged only by their own management ability and its
results. In other words, each Land Bank should be judged on its own
merits, but the Federal Farm Loan Board was in sympathy with the attempts of the best Joint Stock Land Banks to manage themselves as other
successful enterprises are managed.
Your committee has recently received a letter from the President of
the Joint Stock Land Bankers Association which says that the promises
made by the Farm Loan Board have been in large measure fulfilled. The
letter goes on to say:
"You will remember that In this meeting it was proclaimed that there would
henceforth be set up a closer spirit of co-operation between the banks and the Farm
Loan Board: that joint stock land banks would henceforth be recognized as not
merely legal entitles in the Farm Loan System, but as real participants not only in
law but In fact In the System and entitled to the kindly guidance and support of
the Bureau which is charged with the administration of the Farm Loan System of
Banks.
"The Joint stock land bankers in turn pledged their loyal support to the Farm
Loan Board in an effort to Improve its efficiency as a supervising agency and in
furthering its control of all banks In the System in an effort to re-establish the confidence of the public In the securities of the banks in the System.
"We are happy to state that In our judgment the promises that were made have
been kept and that the improvement expected In the banks of the system have been
largely realized.
"We are assured by the Farm Loan Commissioner that distinct progress has been
made by the present Farm Loan Board In the reorganization of the Farm Loan
Bureau: that Its various supervising departments have been strengthened as to
Personnel and control features; that the Information it possesses in regard to the
banks of the System is now being set forth in reports which accurately reflect the
real condition of the various banks: that its department heads are now regarded as
efficient and that a feeling of confidence now exists in the Board that very distinct
progress has been made in re-establishing some of the weaker units of the system
upon a sound foundation.
"An of which leads us to conclude that the last year has been prolific in effecting
public may justly feel confidence In
such readjustments that ere long the investing
Board and that the operating banks
the efficiency of the control of the Farm Loan
command their confidence and
should
which
of the system are emitting securities
induce investment."
is anxious to give the InvestThe Joint Stock Land Bankers Association
of the general situation and
ment Bankers of the country a clear picture
of our Association who
wlil co-operate to this end with any members
that at the present time
are interested to get the facts. It is evident
having a genuine opas
banks
their
the Joint Stock Land Bankers regard
confidence of the public
portunity to grow stronger and to increase the
difficulties of the Joint
in their securities. It is understood that the
cleared up in an orderly manner
Stock Land Banks which failed are being
course, helped by the favand the general farm credit situation is, of
orable crop conditions of 1928.
Respectfully submitted,
flOYER.NMENT AND FARM LOAN BONDS COMMITTEE.
[Vol,. 127.
Following the presentation of the report, Mr. Gilbert
said:
I will be glad to answer any, questions that arise from :that statement
That is not a very long report. It is not a very inclusive report, There
are some things that might suggest, themselves in one's .mind has having
been left out. In the first place, this whole thing is in more or less of
a status of flux, and suggestions are constantly being made for new
legislation and changes in the various laws. At the. same time none
of those suggestions have come to a definite enough point to really be
a matter dor discussion in a report of this kind or to be really in prospect of effective legislation.
Another question that has been raised, even in our conunittee is
whether that report ought not to discuss a little further the position of
the principal Joint Stock Land Banks which are in reorganization. It is
true, I think, that there is practically nothing of any real interest to say
on those suggestions. I might say they are going along in an orderly
manner. Various questions are being raised of legal rights, and so on,
all of which make the working out rather slow, as the beginning of those
things almost always an..
it seemed also with the situation as definite as everybody knows it is,
it was not particularly desirable to harp on the condition of two banks as
against the wholesome growth and position of the balance of the
banks. I have been rather impressed by the things said to me by the
Joint Stock Land Bankers Association and others of the underlying firmness that is coming into the situation gradually. I think the Joint Stock
Land Bankers Association is very sincere in its efforts to bring about
just what is needed to make its credits sound all over the country. It
has two things on its mind in regard to us. One is, how can we help
them to put their securities squarely before the public, and the other is
how can they help us in giving the information we want in order to do it.
I think they are perfectly sincere and are entitled to co-operation from us,
and any suggestions that come from our members that is calculated
to help the committee will be glad to receive.
[The report was unanimously accepted.]
Report of Irrigation Securities Committee—Few New
Instances of Default.
It was advised in the report of the Irrigation Securities
Committee that "each prospective piece of irrigation district
financing should be approached from the same standpoint
as the investigation of a corporate loan." The investment
banker, said the report, "should familiarize himself with
all the conditions surrounding the district with the same
degree of care and caution with which he would investigate
an industrial corporation or even a municipality whose
financing he contemplated undertaking." Willis K. Clark,
of George H. Burr, Conrad & Broom, Inc., is Chairman of
the Committee; Canton O'Donnell (of the United States
National Company, Denver), one of the other members of
the Committee, presented the report, as follows:
Scarcely any new projects involving private financing have been undertaken during the last twelve months, and the whole irrigation situation
appears to be marking time until the country catches up with an apparent
over-expansion of irrigated lands. In certain sections of the country there
is a marked improvement in the condition of farmers living on irrigated
land and a correspondingly better situation in the securities originally
issued for the purpose of development
On the other hand, there have been a few new instances of defaults,
particularly in the Pacific Northwest, and your committee is once more
forced to the conclusion contained in last year's report, that insufficient
information regarding agricultural and economic feasibility was obtained
before the inception of these projects. It is only fair to state, however,
that undoubtedly a large part of the trouble in irrigated lands is due
to the general unfavorable situation which appears to have affected agriculture throughout the country, and this in certain relatively new irrigation districts has been aggravated by high charges against the land
for interest, maturities, and maintenance during this period of depression.
There is probably no one class of securities in which so much loss and
disaster have been experienced during the past five years as in irrigation
district bonds. Your committee therefore feels that it is proper to call
attention again to some of the warnings presented in the 1927 report and
reaffirms the language used in the 1927 report as follows: "In the majority of cases where failures may be attributed to improper financing or
inadequate investigation, it appears that the failures which have occurred
are due in the main to one of the following items or combination of them:
(1) Lack of colonization.
(2) Insufficiency of water supply for the territory to be served.
(3) Inadequate provision for the distributing of water from an engineering standpoint.
(4) Annual charge per acre for water delivered. Including service on outstanding
bond issues and maintenance and operation too excessive for the type of crops suitable for the territory in which the district is located.
(5) Location too remote from markets and other general factors,such as poor soil,
ywehrs
aanrm
f
l uexperienced In Irrigation or too shifttess to make a success of farming
ere
(6) Lack of diversification of crops and frequently too short a growing season.
Investment bankers contemplating the financing of any new or even
established irrigation projects should weigh carefully these several items.
They should further consider not only the irrigation act under which the
bonds are issued, but also the general statutes of the State relating to the
enforcement of tax and assessment liens, and particularly the early possessions of lands through tax foreclosure.
Too much dependence should not be placed on the supervision of irrigation district projects by State authorities.
Each prospective piece of irrigation district financing should be approached from the same standpoint as the investigation of a corpora%
loan, and competent irrigation engineers should be employed to Pus sa
the physical merits of the project; in addition to which the investment
banker should familiarize himself with all the conditions surrounding the
district with the same degree of care and caution with which he would
investigate an industrial corporation or even a municipality whose Mumcing he contemplated undertaking.
While an irrigation project might fail for any one of the six general
reasons enumerated above, the matter of colonization appears to be the
one most frequently overlooked; and the one which often presents the
Municipal bond houses have for years recognised
greatest difficulty.
Nov. 3 19281
FINANCIAL CHRONICLE
the value of population figures in determining offering prices of standard
municipal bonds; and as the modern irrigation district obligation is becoming more essentially a municipal obligation, it seems reasonable that
the matter of population or colonization probably is one which should be
clearly recognized as perhaps one of the most important factors to be
determined in estimating the soundness of an irrigation bond.
Your Committee believes therefore that the financing of irrigation projects
Is a proper and legitimate function for the members of this Association,
but because the financing of an untried district is at best a construction
loan, more than ordinary care and caution should be exercised in analyzing
the phYsical conditions in the moject, and in making an economic survey
of general conditions surrounding it.
We wish to add two suggestions: (1) That it would appear advisable
for the Investment Bankers Association of America to work toward the
end of shortening the period of redemption for delinquent irrigation liens,
the present redemption provisions in many States being so long that the
'bondholder is dbliged to suffer unduly from delay in enforcement. The
second suggestion relates to drainage. Frequently in territory where irrication is necessary it often follows that after some years of irrigation,
a drainage problem is presented. Often the ownership of water rights
is evidenced by stock in a Mutual or Co-operative Ditch Company and
where drainage bonds have been issued following the irrigation there has
developed a tendency in one or two States where the drainage debt became burdensome to sell off the water and let the bondholders of the
drainage district have dry land. Therefore, this committee recommends
that where loans are made for drainage in a district where water rights
can be transferred without the land, as in the case where such rights are
evidenced by stock ownership in a Mutual Ditch company that the stock
evideneing the ownership of the water be required to be deposited with a
trustee as collateral as payment of the bonds.
We regret to report that there exists, in certain sections where irrigation bonds have been issued and sold, a very distinct tendency toward repudiation. This low moral tone and evasion of responsibility has been
unfortunately aggravated by local politicians who encourage the farmers
in these districts to repudiate their indebtedness, exaggerating in many
instances the troubles of the farmer, and completely overlooking the fact
that the financing was undertaken in good faith and undertaken at the
Instance of the settler whose only hope of prosperity was in getting water
on his land. Your committee feels that this is a matter which demands
serious attention on the part of the Investment Bankers, as it strikes at
the very heart of our credit structure. The fact that it may become difficult or inconvenient to pay a debt can never be properly advanced as a
reason for not attempting to pay it and the private investor who has
put his money in good faith into irrigation securities is clearly entitled
to as much consideration as the farmer who borrowed the money to put
water on his land.
During the past year there have been some successful refunding operations and certain outstanding securities of old-established ditch companies serving well colonized communities, have been refunded at relatively
low interest rates,
It is improbable that there will be much activity in the line of irrigation district financing during the ensuing year due mainly to the fact
that there appears at the moment to be no immediate need for new projects
which can properly be financed by private capital.
In analyzing circulars describing irrigation securities issued a number
of years ago, your committee feels that in many instances complete
and
adequate information was not properly set forth in these circulars.
Your
eommittee therefore recommends that any house putting out an
issue of
irrigation bonds should endeavor so far as possible to include
in the
circular describing such securities the information set forth as
essential in the new circular specifications of the Investment Bankers'
Association of America now being published. A copy of these
specifications is
hereto attached and made part of this report:
I.Complete and proper descriptive name of issue.
2.Amount of Jesse.
3.Date. denominations, place of payment, optional features, if any: and, if
serial
maturities, each maturity should be separately listed.
4.State whether political subdivision or private organization (give
geographical
location).
5.11nancial statement of district must Include:
a Assessed valuation of lands.
e Total irrigable area.
to Appraised value of lands and works f Number of land owners.
(give authority).
g Average size of unit farmed.
h Population.
o Total bonded debt.
d Total area (in acreage).
8 Purpose of issue.
7.0rganization of issuer of securities:
it Political subdivision.
e Corporation.
b Co-operative body.
8.Character of lien—general obligation, tax lien, assessment lien,
mortgage lien;
whether
lion
is
general
particularly
obligation of district or special lien
against individua; pieces of property.
9.0wnership of sources of water and nature of water rights.
organization.
10.0perating
11.Income of district or corporation.
12 Engineering features:
a Water supply—adequacy and authority e Topography of district.
f Character of soils and
for this statement.
B Gravity by direct flow, reservoir and g Climatic conditions. classification.
capacity of same, or pumping.
h Colonization situation.
o Genera features as to feasibility of 1 Is drainage provided tor—if not, give
Project with authority therefor.
authority for this being
g unnecessary.
d Elevation above sea level.
13.Maintenance charges per acre—a Power charges, if any.
14.General information'
A Transportation, railroads(proximity to 0 Electricity for domestic purposes.
market).
d Estimate of annual income from crops.
B Highways.
io.stetutory debt limit, if any, or restrictions on further Issue.
16.Tax exemption of securities:
b State.
di Federal
17.Legal for what investment purposes.
18.Authority for issuance.
19.Atturneys passing on legality, construction engineers, appraising engineers,
20.Priee and yield.
Respectfully submitted,
WILLIS K.CLARK, Chairman
WILLIAM CAVALIER,
LAWRENCE H. ARNOLD,
CANTON O'DONNELL,
THOMAS W. HANKS,
ODD 0. YOUNG.
2473
studying the management of a company whose securities
are being marketed was pointed to in the report, which (as
unanimously adopted), follows:
In submitting this report your committee have taken into consideration
the reports of previous committees and have endeavored to avoid needless
repetition. Four of the more recent reports on industrial'itecurities have
taken up in more or less detail the structure and niinutiae as well as the
financial set-up of certain industries such as automobiles, chain.storeit oil,
paper, pulp, &c. Having served on three of these committee*, the
present Chairman cannot be accused of criticism in concurring leltir the
opinion of this committee that such detail is no longer necessary—
with certain exceptions. If any member of this Association. desires
information or advice in regard to the suggested form of securities based
on those and many other enterprises he has but to turn 'to the reports
for 1923 to 1926 inclusive. As an aside, this might be construed as an
added admonition to the members to read the Year Book and Bulletins,
so pertinently suggested by our Executive Vice-President, Mr. Little.
It is our endeavor to stress briefly special features that shorn be
examined Carefully and if possible to try and throw new light on certain
of the pitfalls encountered in the consideration of industrial financing.
No better way can be found than to follow the instructions of the Association to this Committee by which it is obliged to examine all the circulars on industrial securities issued by members. No matter how carefully circulars are prepared, some are bound to contain occasional mistakes or omissions, and it is the province and the duty of this Committee
to look for such and, when they appear to be of a flagrant nature, to bring
them to the attention of the house that is responsible. Approximately
three hundred circulars have been so examined and we think the Association is to be congratulated on the evident desire of its members to follow
the advice so ably set forth in the report of the special committee on circulars. As there would be no point in merely examining these circulars
without publishing certain comments, we submit below a few features
which seem to us deserving of criticism.
It seems almost too trivial to mention, but it is almost amusing to note
the "alternation," one might call it, with which' one circular. taken from
the pile will carefully set forth that clause entitled "Purpoee
lame"
and the next one will omit it, stressing most splendidly the "management"
clause, which was entirely ignored in the first examined circular,
his was
revealed in countless instances and is merely referred to here to caution
members of the desirability or even necessity, of including both clauses:
In very few cases did we find the "ownership" clause stressed in an
important manner.
One case we should like to mention. In a circular offering a preferred
stock it was well set forth that—
.
"for a period of years practically all of the common stock has been owned by the
Present management, who will continue, &C., and who will continue to retain
ownership of the common stock."
In a circular issued three (3) months later, the same parties offering
a common stock of a consolidating company stated "that all of the common stock (of the above referred to company) had been acquired." While
the same management was continuing in control of the new company, there
is a discrepancy in the statements or an absence of any explanation that
doubtless was overlooked, but which might lead to a charge of bad
faith.
There have been a great many issues of so-called class "A" stocks,
some with preferential rate of dividend over the class "B" or common issue,
some without that, and some with a feature of participating over and
above a fixed rate after the class "B" has received certain dividends.
We feel that in many circulars the presentation of earnings applicable
to such participating class "A" stocks has been a trifle ambiguous, not
to say misleading. In no instance have the actual facts been departed
from, but figures given do not present the picture which the prospective
investor was entitled to see. In one instance, a stock entitled to $4
showed in a tabulation $11 as applicable to dividends, and while this
was technically correct as there was that cushion of $11 earned before the $4 dividend on the "A" was in jeopardy, nevertheless, after the
"B" had received that to which it was entitled, there really remained
but about $5 applicable to the "A." In one circular this was most lucidly set forth, but in many others we have found the matter distinctly
ambiguous.
The question of voting power, particularly in such issues of class "A,"
or in common stocks, should be clearly set forth. In few instances have
we noted that it was so done. When an investor is buying an equity stock,
he usually presumes he is buying the same security as that held by the
managers or insiders, but it often occurs that the stock offered to the
public has no vote and nothing is said about it, and we also feel that
this should most carefully be set forth.
Another point the committee would like to call attention to is the problem of publishing more recent balance sheets. Some of them are Soo old.
They should be of more recent date. In one case, a baance sheet MOB
given as of December 31, the bonds being offered in September. In that
balance sheet, which was of the "adjusted" order, was an item of approximately $4,000,000 cash; yet in November following the company was
in default on a sinking fund payment amounting to approximately $150,000.
A later balance sheet should have been submitted and would doubtless
have shown a more correct condition of the company's affairs. No further
comment seems necessary on such a situation.
Several circulars were examined in which an offering of preferred stock
was made based upon a business housed in a building on leasehold property. The reference to the fact of a leasehold rental being a prior
charge was made in very small type and in a most inconspicuous way. 'The
investor glancing at the circular could easily derive the impression that
the dividend on the preferred stock was a first charge on the earnings. tin.
fortunately, investors, as a rule, do not read circulars carefully, and the
average investor would scarcely have noticed the mention made of the
leasehold charge. In our opinion, these figures should be set forth in
just the same manner in which an interest charge on bonds would be
placed.
Your committee could continue indefinitely with features to be criti[The report was unanimously accepted.]
cised, seemingly unimportant, yet really vital, but we feel there is neither
time nor space to more than touch on a few points, at random, such as
the foregoing.
Report of Industrial Securities Committee.
So muck has been written on industrial financing both within and
Barnard,
of
Augustus
Dominick
&
J.
Dominick, in his re- without this Association that we shall only elaborate on one
or tw•
port as Chairman of the Industrial Securities Committee, Important features. Management seems to be conceded by all to be
touched upon "special features that should be examined care- the most important requisite. As has been ably epitomized in a previous
report, the B. & 0. RR. has recently celebrated its 100th anniversary,
fully and if possible to try and throw new light on cer- yet how many of us buy clothes and necessaries at the same shop
for more
tain pitfalls encountered in the consideration of industrial than perhaps ten years, how many use the same make of ato
utom
ouorbilni
e in
for
more
than
such
a
period?
These
concisely
stated
ideas,
financing." The importance of the investment bankers
d,
most clearly point out to the invislanant banker the prime
ilea** el
P74
FINANCIAL CHRONICLE
istislYing the management of a company he is considering and practising
eternal, vigilance in watching that management, after the securities have
been Marketed. Too often has it happened in the past that a management which has built up a successful business, having sold that business
to the. public through security issues, becomes lax and careless, and too
often has it happened that the banker who placed those securities had not
kept in close enough touch with the management to protect his interests
and those of the publie--which is one and the same. Therefore, we feel
we cannot lay too much stress upon the necessity of the investment banker
inserting, a covenant in his original purchase contract by which the information on earnings and general trend of the business will be furnished
at freipibnt and periodical times and all information, even of a most confidential nature, should be furnished. When the heads of business enterprises will take their bankers into close and intimate confidence, well in advance of any impending crisis, it will be much better for all concerned.
Too careful study cannot be given to the trend of a business; whether
the articles manufactured or sold are necessities or luxuries; if patented,
whetber•the licenses are soon to expiis; wlisther th fash,ons, so to speak,
are changing or have remained in the past fairly constant with every Indication of similar constancy in the future; whether a company depends too
much on the sale of one type of article, Sec. The question of labor, its
supply and availability, not only for tie plant or enterprise being considered but for all analogous concerns throughout the country, the fluctuations in that particular industry, t ot omitting to consider, even at Ode
time; the war-time demand or lack of demand, and the post-war situation,
the aniOunt of capital employed in this particular industry, and whether
there is room for a further expansion. These points should be weighed
with scrupulous care by the banker, and though very general are meant
to cover the various ramifications of such.
All of these features are rightly placed under the head of management,
for if they have not been well considered by the business management
they, should be by the banker as part of his "management."
Previous reports have dealt extensively with the proper "set-up" of
Industrial securities in general. But it might la sertinent here to say a
word on oil-company financing. Its importance may be visualized from
the fact that last year major pieces of oil financing floated in the American market aggregated approximately $450,000,000. However, your committee will -content itself with a brief observation at this time
There are two main considerations which the bankers must have in mind
when undertaking bond or stock issues of oil companies- management and
The management question, of course, applies to
accounting methods.
every line of industry, but an oil company income account or balance sheet
means much or little, depending upon the accounting practices. By one
method of accounting a company may show a handscme profit, and by
another method the same gross income may be eh:loge:1 to a large deficit.
Depletion and intangible drilling costs are items subject to wide latitude
in treatment.
Unfortunately there is no uniformity of practice in this respect, so
unless one has a knowledge of the "working papers," a report, though
entirely accurate from a tecnical accounting standpoint, luny be quite meaningless or very misleading. The investing public is entitled to know the
facts about any security which they are invited to purchase, and honing
houses should see to it that their offering circulars reveal earnings after
as well as before depletion and depreciation. They should also disclose
whether intangible drilling costs such as labor, Sic., are charged directly
against operating expenses or capitalized to be amortise] over a more
convenient later period. The former method is the more conservative, but
the latter one is much in vogue and may be defended as quite proper.
The point we wish to make at this time is that there should be no uncertainty left in the public mind as to which method is used, so that there
may be no opportunity for a dissatisfied purchaser of such securities to
charge misrepresentation at a late date, in the event of the issue declining
marketwise.
The structure or form of an industrial security, of course, depends
largely on the individual business to be financed. Old and well established
corporations, with large assets and earnings can usually sell a bond, generally a debenture of low interest rate. These are in a class by themselves,
and this report has little concern with them. But the method of financing
a small and new company has been argued back and forth until the conclusion arrived at is mostly a matter of individual opinion. We believe
that such financing should be done by stock issues and not by bonds.
While it is not the object of this Association to instruct or even to
point out to its members in setting up a financial structure what risk
they or the public should take on a security, this sommittee nevertheless
feels that it is particularly their function to bring to the attention of the
Association, certain features which they feel should be avoided.
What we have in mind from a concrete standpoint is a tendency that
seems to prevail considerably of late to put too many bonds either secured
by mortgages or debenture issues on certain industrial corporations rather
than relying more on preferred or even common stocks for raising capital.
Of course with old recognized and large companies, this does not amount
to so much, but with smaller companies, and newer companies it is our
feeling that financing by bond issues is a matter that should be very carefully weighed and the issuance of bonds reserved for emergencies as much as
possible. The old homely saying about "an Individual's ability to most
gage his house to raise money to apply to his business" in an emergency
is perhaps trite, but, nevertheless, the subject of that saying is a matter
to be given deep consideration.
If a member wishes advice on the most expedient, or we might say
enlightened, method of setting up a preferred stock issue, we refer him
to the reports above mentioned; but there is one feature that has been suggested previously, yet never, to our knowledge, adopted, that we wish to
emphasize, to wit:
The covenant in the articles of incorporation by which no bond issue can
be placed ahead of a preferred stock issue without the consent of the preferred stockholders is practically universal, but if the management desires
to or is compelled to issue bonds, then the prefrred stock should have
relinquished to them by the common stock some of its equity. The details it is obviously not our province to suggest, but a preferred stockholder
is really in the class of a creditor, almost a bondholder, and if his consent
is required to mortgage the property he should be given some of the equity
he is preserving by his action. It has been contended that he must consent to save the property and therefore is entitled to no compensation. But
the days of that sort of attitude have long since passed, nor should the
preferred stockholder be disposed to say that he would take all he could
get in liquidation, wiping out the common, but join with the latter in
working to establish the business on a better foundation and receive from
the common stock—that is the management—some sort of return.
It is our confident opinion that the precepts 60 ably expounded in previous reports concerning the set-up of preferred stocks, and even debentures, should be followed more strictly. Some houses contend that as a
[VoT,
general rule, but subject to certain exceptions a preferred stock should
be represented by a -minimum of 100% net quick assets. Certain houses
have long demanded a larger• Peibentage; among' these excepteula Might
be mentioned preferred stocks with a conversion feature, ‘Sairants attached, Sec. Yet' we have noted one instance where a company, fairly
new and small, put out debenture bonds with scarcely 50% of net quick
assets behind them, and these in turn were followed by a Preferred stock
issue. There are, of course, exceptions to all rules, but a more general
adherence to the above will probably avoid a great amount of trouble
in the future when business, commercially and financially,' may not be
so prosperous.
There is a tendency, occasionally noted, to make a preferred stock
appear almost as if it were a debenture bond. This practice should be
decried and while every possible safeguard should be thrown around a
preferred stock issue great care should be exercised in describing that
somewhat anomalous form of security.
There is just one word of caution we would suggest—in drawing up
the terms or conditions safeguarding a preferred stock, or even a bond issue
—care should be observed not to make them so exacting that they would
be an obstruction in the case of an emergency or the simple necessiity
of raising more capital.
The question of the issue of common stocks is of such wide and discretionary power that it is difficult to make any suggestions. However,
we think a word of caution is in order against the tendency to overcapitalize. In this connection we might be pardoned for expressing the thought
that the great competition that has arisen among houses of issue has caused
them to pay too high a price for properties, thus compelling overcapitalization. As long as the immutable law of supply and demand holds good
it is difficult to see how this can be changed; but it would be better
if we could all adhere to the suggestion of our President and "play ball"
among ourselves with great benefit to ourselves and the investing public.
In referring to the question of balance sheet, we are treading on dangerous and difficult ground. We do not intend to delve into this intricate
and highly specialized side of industrial financing. There is, however, a
word or two that could be said here on this subject. The difference
between a condensed and 'consolidated balance sheet is vast, yet the average investor does not always note that and is inclined to consider them
identical. Therefore, care should be exercised in presenting the figures
so that no ambiguity can creep in. The so-called certificate of the accountants should likewise be free from misconstruction or ambiguity. For
example, we have noted in a circular a wording that was not clear,
whether the balance sheet had been adjusted to show the present financing
after the accountants had submitted their balance sheet, or whether they
had passed upon it in the adjusted form—made the adjustment themselves.
In an endeavor to bring the accountants into even closer touch with the
bankers, a subcommittee has been appointed from this committee who will
collaborate with a committee from the American Institute of Accountants.
The'function of this subcommittee is to hold itself available to hear CCMplaints, or differences of opinion, that may arise between a member and
his accountants, and then take it up with the Committee of the Institute,
for a decision or at least a clarifying opinion. It is not presupposed that
this will entail very many occasions for action, but it is felt that such
contact will be of benefit to the Association.
In conclusion, we would repeat that we believe the Association is to
be congratulated on the evident care with which the members are issuing their circulars and their earnest endeavor to present in a fair manner
to the investing public the many forms of securities representing the
industrial development, not only of North America but almost the entire
world.
Respectfully submitted,
J. AUGUSTUS RARNARD,
Chairman.
Following the submission of the above report Mr. Barnard
said:
I would like to add, referring to that Committee, that at the direction
of the president, I appointed a sub-committee from our committee to
confer with the Committee of the American Institute of Accountants, and
they have designated the committee they already have in existence, which
/ believe is called the Committee to Collaborate with Banks, of which
Mr. William B. Campbell, of Price, Waterhouse, is Chairman, so that
is the committee with whom we would collaborate, and, of course, the
committee from the Association will be appointed by the next chairman of
the Industrial Committee.
Report of Real Estate Securities Committee—Building
Contracts Awarded in First Six Months of Year
Exceed Those for Same Period in 1927.
This report, together with that of the report of the Railroad Securities Committee, was not read at the annual
meeting of the Investment Bankers' Association, both having been assigned a place on the program of Friday Oct. 19.
The unfortunate airplane accident of the previous day,
which resulted in the death of W. Octave Chanut of Denver,
caused a curtailment of the program, the two reports as a
consequence being ordered mimeographed and distributed
to the members and the press. The Real Estate Securities
Committee, of which is Sidney R. Small, of Harris, Small
& Co., Detroit, is chairman, stated in the report that the
first six months of 1928 show larger figures in building
contracts actually awarded than did the same period for
1927, and it added: "Claims are made by some that the last
six months will bring the total figures for this year above
those of the record years Just past." Nevertheless, as stated,
"it is possible that . we may see a decrease in building
activity for the balance of 1928, if it has not already begun."
A discussion of Land Trust Certificates is found in the
report, which says: "While comparatively new, this modern
adaptation of old principles to the investment banking business is becoming more popular, and deservedly so, when its
Noy. 3, 1928.]
partieular advantages and limitations are understood."
The fnll report follows:,
_Report of.the Red Estate Securities Committee.
.
The years of 1925 and 1926 have gong down as record-breaking periods
of general' Wilding activity, with 1927 only slightly behind. Contracts
awarded. in 36' States (reported by the F. W. Dodge Corporation) were
valued, in 1927, at $6,084,000,000, compared with $6,152,000,000 in 1926
and $5,822,000,000 in 1925. In tering of floor space of buildings represented in these contracts (exclusive Of public worka and utilities) 1927
showed a: total of 804,000,000 square feet, or 4% under 1926 and 9.5
less than 1925. Residential contracts for 1927 declined both in value and
floor space represented for the second successive year, while the value of
industrial building contracts was about 30% less than in 1926. Wholesale
prices of building materials averaged 6% lower than in 1926 and in
December, 1927;'were at their lowest level since April, 1922. The tendency
of the 'published wage scale, however, was upward.
The first six months of 1928 show larger figures in contracts actually
awarded than did the same period for .1927. Comparing the first six
'months of''the 'past four years, we find that in contracts awarded they
stand as ,follows:
3 187.993,009
2 748,695,00011927
1925_
3,154,158,00011928
3 444,863,000
1926_
months
the total
last
six
will
bring
made
by
some
that
the
and claims are
figures' fir this year above those of the record years just past. This may
be the case, but it is possible that we may see a decrease in building
activity for the balance of 1928 if it has' not already begun. Construction
contracts in the amount of $516,970,200 were awarded in August, 1928,
in the SI States east of the Rocky Mountains (figures also by the F. W.
Dodge Corporation). These States included about 91% of the total donStruction vOlume of the country. The decline from July of this year was
about $66,000,000, or 11%. The decrease from August, 1927, was about
$35,000,000 or, 6%. The New England States and those of the Northwest
were the only districts showing increases over July, 1928, records, while
the Central West, Northwest and Southeastern States showed increases over
their August, 1927, record.
The September Bulletin of the National Association of Building Owners
and Managers, the official paper of that organization, to which we, the
Investment Bankers Association, are much indebted for their wholehearted
co-operation, reports as follows:
"The construction of new office buildings ccntinues at a high rate and during
th6 first eight months of this year measures up well to the figures for 1927. In
the number of contracts auarded the first eight months of 1928 are about equal
to 1927, but the telel amount of new floor space and the construction costs for
1928 are falling behind.
-Comparing the figures for August 1928 with the corresponding month for 1927.
more projects were contracted for, but the amount of new floor space is about 800,000
feet less than for the month of August 1927. While a comparison of the cost figures
on the square-foot basis is not weighted to allow for variations in the type of
buildings, the average square-foot cost figure for August is much below the figures
or August 1927."
The general falling off in August building may possibly be indicative
of the trend we 'may expect for the balance of the year, especially if the
cost of money continues high, for sooner or later, as has been pointed out
several times this past month, general building and the attendant issuance
of real-estate securities must be directly affected by any sustained high
interest rate.
The real estate capital flotation figures for the first seven months of
1928 showed a decrease of approximately $63,737,550 from those of the
first seven months of 1927, according to figures obtained from the
Commercial and Financial Chroniele. Detailed figures are as follows:
Year— Month—
Total.
Year—Month—
Total,
1928
January
836,145,000 1927
January
876,162,000
February
42.912.500
February
60,787,500
March
65,312,000
March
71,543,000
April
90,373,000
April
76,307,000
May
79,355.000
May
54,801,500
June
67,478,700
June
105,272,250
July
57,144,500
July
57.5,5,000
$438,720,700
$502,458,250
Both of the above tabulations include all Long- and Short-Term Bonds
and Notes for financing land, buildings, etc., during the first seven months
of 1927 and 1928. The totals compare with $405,764,500 for the same
period of 1926.
Examination of Circulars.
Since the Seattle Convention, your Chairman has received and examined
308 circulars forwarded from the office of the Secretary in accordance
with a previous resolution of the Board of Governors. During the last
three months of 1927, a large number of the circulars examined seemed
to have been prepared without muoh reference to better practice as outlined in the report of the Special Committee on Circulars distributed to
the membership in June, 1927. Since that date, however, a splendid spirit
of co-operation has been apparent, circulars have been more full and
complete, and have in the main indicated a sincere endeavor to follow the
suggestions of the Circulars Committee.
Appraisals.
Your Committee has given special consideration to the subject of appraisals, referred to it by last year's committee. This subject has probably
received more attention by committees of this Association, committees of
the Real Estate Boards, and various other bodies, than any other topic
connected with the issuance of real estate securities. If there could be
prepared a code or form which might be followed in the making of all
appraisals on which any bond financing is based, it would not only be
a
‘source of great relief to everyone, but would also greatly simplify the
analysis of real estate bonds. Such a form is, of course, impossible to
construct at this time, if it can ever be accomplished, on account of
the
varying conditions under which financing is done in different sections of
the country. Because of the tremendous increase in building and building
financing through the medium of bond issues during the past few years,
however, this committee believes that a review of some of the appraisal
practices that prevail will not only bring the entire subject of appraisals
more clearly before the membership but may also pave the way for the
correction of some of the abuses more apparent to-day.
Bonds are issued in proportion to the appraised valuation of property
and that proportion varies under different conditions. All this, of course,
Is most familiar to everyone—both buyer and seller. The items con.
sidered and included in the make-up of the appraisal itself, however, are
not as familiar, and it is the inclusion or exclusion of many of them
in
the final appraisal that has formed a basis for general discussion for
a
good many years. Standard practice varies in different parts of
the
country and is governed to some extent by the laws of the States in which
the security is to be issued and sold. Securities Commissions may
specify
what items may and may not be included in an appraisal; the banking
2475
ljNANQI4L CHRONICLE
laws may govern. It is the everyday practices and methods, however,
that are used in appraising properties in various sections' of ,the c9lintrY,
,•
• ..
that this committee wishes to review at this time. • . : •
One banking institution in the East, with long experience in the.dending
of money on mortgages considers only the following factors itt.activing.$
•
the physical value of •a building:
Current cost of labor.
Current cost of material.
Current contractor's profit.
Current architect's fee.
Depreclatic n.
These it terms,"market factors" because they are 'always obtainable,
not only at the time a building is erected, but ever thereafter during•lt6
existence. It follows, then, that the physical -Value of 1.1..building iheresises
and decreases in the same ratio as construction costs rise 'and fall; excepting
as affected by an increasing reduction for depreciation with the lapse of
time. The physical value of, a building may not be Ms' xnarket Value is
several other faitors enter here for consideration, including adeqUaci,
suitability and obsolescence of the building, earning Power- of the property
as a whole, tendency of rents, future trend of land 'Values, eta.' It Is,
therefore, clear that if the market value of a building is largely dependent
upon its earning power, it should be adequate and suitable to the partidular
location represented by the land upon which it stands. By the same token,
a piece of land must be properly improved to develop its nuithhuni- earning
power. All of which confirms the belief held by many that only the
market value of a property should be used as the basis fot a'itiottgage loan.
If the earnings shown for the' property are based on rental figiires believed
to be conservative and in line with average earnings over a Ptitied, this
market value is taken by the institution in question ae the aPpreisal figure.
Another company that has also loaned a considerable 'anibuttt. of "money
over the past several years on real estate mortgages and real estate ben&
secured by these mortgages, uses as a basis of appraisal -Value not only the
cost of labor and material, the architect's fee and contractor's profit, but
also the items of taxes and interest during construction, financing and
legal expenses, trustee's fees, and insurance and surety bond' prennunals;
in fact, all items representing expenditures necessary for 'the duplication
of the structure in question. A certain large insurance company, on the
other hand, considers in physical value only cost of material plus'cost of
labor, with no allowance for contractor's profit and architect'S fees,
'•
reducing this figure to market value for purposes of a loan. '
There are, this Committee believes, few lenders throughout the country
who include only cost of labor and material in the items to be .Included
in a conservative appraisal and it is the question of inclusion'or exclusion
of certain other items, such as interest and taxes during ainsfraction,
trustee's fees, legal expenses, financing expenses, engineers' fees, bond
discount, or reimbursement for loss of rents immediately following completion of building that forms the basis of discussion.
One of the best authorities in the Middle West cites the following as
reasonable items to include in an appraisal for the purpose of a bond issue:
Cost of land, plus cost of building, plus 20% to cover interest during the
period of construction; cost of financing; legal expenses; trustee's fees;
and securing tenants for an office building. Thii20% also includes contractor's and architect's fees.
It should be noted that the figures just cited state cost of building and
not value of building on an earning basis. In a construction loan, the
earning figures, unfortunately, are at best but estimated. Bearing this
fact in mind, it seems particularly sound in a loan of this type that there
should be used as a basis of lending the actual cost of the building even
when capitalized estimated earnings would tend to show a possible. higher
valuation. By a similar token, no property is worth more than its fair
earnings can be capitalized at, Every valuation of land and buildings
based on physical values must be checked from the standpoint of earnings,
the trend of the neighborhood, obsolescence, adequacy, etc., before a
proper value can be obtained on which to base a bond issue or a mortgage
loan. Where the valuation figure obtained from the capitalization of
stabilized earnings is materially less than the physical value, it is at once
apparent that the 'building is a poor investment.
As one bank has stated, it appraises, first, on a physical cost basis and
then on the actual and estimated rent basis; namely, capitalizing the rental
income at a stated figure. The two should approximately balance, but in
any event the lower figure is, of course, used.
Because the subject of appraisals and appraisal practice permits of so
much sound discussion, it is not the intention of this Committee at this
time to state what items, in its opinion, should or should not be included
in an appraisal. During the past year, however, certain organizations
whose members, to a large extent, are directly Interested in the making
of appraisals, have been trying to set forth in detail the various items
to be considered in making sound appraisals and some of them have now
arrived at at least tentative conclusions. Your committee suggests to the
new Real Estate Securities Committee that it may be possible after considering the conclusions of such organizations to prepare and submit to
our own Association a specific schedule of items to serve as the basis of an
appraisal which the Investment Bankers Association will recognize as sound.
This Committee believes that it is unsound practice when having a
property appraised for purposes of a loan, to have the land valued by one
appraiser and the building by another, each acting independently, without
considering the property as a whole. It is the location of the lot which
establishes the value of space in the building, therefore, the rents received
from the property will be in the same ratio as the efficiency of the building
erected thereon bears to one representing the maximum development of
the lot. The moment a building is completed, the land and building becomes obsolete or too old for use. Then the cost to remove it would be
deducted from the value the lot would have if vacant. There can be no
objection to an appraiser valuing a vacant lot as such, but it should be
done with the understanding that his valuation is not to be used in conjunction with an appraisal of the building to be erected thereon. Also, an
independent appraisal of the PHYSICAL value of a building may be
obtained, but it should not be used in conjunction with an independent
appraisal of the land for purposes of a mortgage loan.
Sound practice also dictates that the owner of a piece of property have
invested in it a substantial percentage of the total valuation of the property. A rather common figure for this equity percentage Is 25%, where
the total valuation does not exceed $500,000, and not less than 15% where
the total valuation exceeds that figure. A smaller amount is not sufficient
to enlist his best efforts in times of stress.
Land Trust Certificates.
The reports of committees for the past several years have explained in
some detail what Land Trust Certificates are and for what they are used.
It is proposed in this report to bring down to date the record of this
particular vehicle of financing. At the risk of some repetition, therefore,
it might be explained that Land Trust Certificates are in form similar
to
2476
FINANCIAL CHRONICLE
a stock certificate, are signed by a bank or trust company, and recite that
as trustee it holds a particular piece of veal estate in trust for the benefit
of the holders of the Certificates; that the real estate has been leased to a
particular person for a definite term of years at a fixed annual rental;
that the lessee has the option to purr:ham the property for a fixed sum;
that the trustee will distribute to the certificate holders their proportion
of tbe 'rentals as received on specified dates, usually quarter-annually;
that upon termination of the trust the trustee will account to the certificate
holders for the property or the proceeds. The result of the transaction is
that a bank or trust company holds title to real estate for the benefit of the
persons who two the Certificates, and for convenience in realizing the
benefits of the Property so held, the trustee assumes certain additional
duties, including the collection and distribution of rents, the registration
or transfer of Certificates, and upon termination of the trust it handles
the final distribution at the property. Certificate holders are the real or
beneficial owners of the property, the trustee merely has the legal title,
the equitable title being in the certificate holders who are equitable tenants
in common. As explained in one of the previous reports, the principles
upon which the Certificates are based are not new. The only thing new in
connection with the Certificates is their adaptation to the investment banking business.
The past year has seen an extension in the use of this form of financing
although the number of new issues brought out has dropped along with
all other forms of financing. Most of the early criticism of this form of
Investment came from Illinois, and it is believed this was directed chiefly
to some questions of local law. During the past year, however, the largest
title company in the Middle West, located in that State, has advertised
that it is prepared to handle trusteeships in these issues; so that these
questions have apparently been answered to the satisfaction of that title
company. The Supreme Court of Wisconsin, in a test case, has held Land
Trust Certificates to be valid under the laws of that State. Participations
in the larger issues that have been brought out have been nationwide, including bankers from Massachusetts to California. Certain of the public
officials of the State of California, we have been informed, have been
making investigation of the principles and practices involved, with a view
to corrective legislation to facilitate this form of investment. As a whole,
the year has shown an increase in the popularity of the Land Trust
Certificate.
Land well Located, used productively, and producing an income or rental,
has been the subject of investment for centuries, as has been pointed out
in one of the recent annual reports. Unfortunately the unit of investment
is large in downtown real estate, and this form of investment has been
limited heretofore to comparatively few people. To acquire an investment
in downtown real estate has required more money than a large proportion
of investors can afford to place in one particular investment. These Certificates offer, in convenient units, participation in the investment of this
kind of property, and the Certificates have served a two-fold purpose.
Ordinarily, business concerns, and even building companies, expect to
realize, more than five or five and one-half per cent on their invested
capital, and to own the.land to their business sites is an expensive luxury
when they can rent land at five to five and one-half per cent of its value.
Thus, the business man who does not wish to have his money tied up in
real estate has the same problem as the investor who desires to invest in
this form of real estate, and the two are happily brought together through
the &terrines of investment bankers who are offering Land Trust Certificates.
From the investor's standpoint, he has what is in effect tax-free investment. The property in which he has the equitable ownership is usually
leased to a responsible concern and the lessee agrees to pay the taxes. He
therefore receives the rental as his income and the taxes (other than
income taxes, of course) are paid by the lessee.
The better practice in bringing out issues is to limit the amount of the
Certificates to the value of the land alone, exclusive of the buildings,
and in addition, also, to limit this amount of Certificates to not more
than sixty per cent of the total value of the land and buildings. Investment by the lessee in the buildings, therefore, serves as a security for the
payment of the rentals and taxes upon the entire property.
Competent counsel, familiar with the real estate laws of the State in
which the property is located, should, of course, always be employed.
The Certificates apparently lend themselves more readily to the financing
of properties where land values are high in comparison with the building
values, such as usually occurs in downtown city properties, since the
amount of the issues is generally limited to the value of the real estate
alone. The better practice seems also to be to provide in the leases some
provision for taking care of the depreciation in the value of the property
and to give the lessee an inducement to re-purchase the property over a
period of time. The dangers, then, frdm the shifting in values of a
particular section are thereby minimized. While comparatively new, this
modern adaptation of old principles to the investment banking business is
becoming more popular, and deservedly so when its particular advantages
and limitations are understood.
It is probable that more States whose laws do not readily lend themselves to this type of financing will consider the enactment of remedial
legislation as Land Trust Certificates become better known and the demand
for amendments to the law becomes apparent.
Your committee wishes to thank the members of the Association for their
splendid co-operation since January 1 of this year in the matter of
better circular practice. In conclusion, your committee respectfully urges
that a real study of the subject elf appraisals be made by all members in
order that constructive help on this most important subject may be given
to next year's committee.
Clarkson Potter
Arthur H. Keevil
C.Prevost Boyce
Herman C.Schwab
John C. Legg Jr.
J. Marechal Brown Jr.
Sidney R. Small, Chairman.
I. II. Overman
James D. Chambers
[Vot. 127.
to have a country-wide appreciation of the unsound tendency
in the financial programs of the States and their subdivisions. The State and Local Taxation Committee is to direct its attention, said Mr. Waddell, "to this vast and complex field." His report, unanimously adopted, is as follows:
The activities of your Taxation f5ommittee during the past year have
been directed largely toward the 1928 revision of the Federal Revenue
Act. At the Seattle Convention approving action was taken upon several
recommendations presented by the Committee. The Revenue Act as finally passed and signed by the President did not in all respects meet the
desires of the Association as thus expressed. However, the influence of
the Association was perhaps of material weight in the elimination of some
proposed phases of the act which we deemed unsound economically and
unfair to the reasonable interests of the Association's only clients—the
investor in securities and the investment banker who serves him. We may
also have had a part in the modification of other phases which were
similarly regarded.
As in the past, the Taxation Committee was accorded by the Ways and
Means Committee of the House, the Finance Committee of the Senate and
the Treasury Department that thorough consideration which it has earned
by a jealous adherence to the Association's policy of representing the interests of only the investor and the investment banker. The Committee
would be remiss and this report would be incomplete if we did not express
also our appreciation of the co-operation given by the Regional Groups of
the Assoeiation when they were asked to second the recommendations of
the Association as presented by this Committee.
Revision of the Federal Revenue Act has been biennial in the past.
It may be improbable that any revision will be undertaken at the coming
session of Congress. That, however, does not remove the urge for continued work by the Association along Federal Taxation lines. Through
the Regional Groups and the individual members educational work should
be continued for some phases of the taxation structure which have not
as yet been attained, against others which should be modified and against
still others which should be eliminated. When a revenue bill is In the
making our representations are given careful consideration in spite of the
fact that Washington has suddenly become the focus of a vast amount of
plea, protest and pressure. There is a mountain of material and not a
little of the immaterial which must in a comparatively few weeks be passed
upon by those in Congress and the Administration who have the task of
formulating the Tax Bill. Our work at that time will be even more effective if we have between sessions of Congress continued to bring our
constructive recommendations before Congressmen and Senators while they
are among their constituents. May we ask the Regional Groups to have
that in mind and to act upon it when in the Taxation Committee's report
they have read of those phases of the Tax Bill which the Association must
regard as still "Unfinished Buenas."
This Association is obviously non-partisan and there is nothing of partisanship in our giving a deserved commendation to the continued efficacy
of the Bureau of the Budget at Washington to the reduction of taxation by
Congress and to the reduction of the Federal debt by the Administration.
The Budget.
Second only to its contribution of man power in the prosecution of the
World War there is a veritable epic in the record of this country's assumption of its financial obligation in that titanic struggle and in the record
of the manner in which it then turned its peace-time attack upon the
resultant deficit and debt. The fiscal year 1919 closed with a deficiit of
$13,370,000,000 and a public debt of over $25,480,000,000. On August
31, 1919 (second month of fiscal year 1920) the public debt, disregarding
balances in the treasury, totaled over $26,500,000,000. The Budget
Bureau was organized in June, 1921, and had some effect on expenditures
in the fiscal year 1922 but prepared the first budget for the fiscal year
1923. The deficit had been turned into a surplus during the fiscal year
1920, but there remained a public debt of $22,960,000,000 at the close
of the fiscal year 1922. Interest paid in that year amounted to $989,000.000. Due in part to the operation of the budget we have had a surplus in
each of the past nine years. From 1920 to 1928 inclusive the surplus
total amounted to $2,692,000,000. Of this amount $2,079,000,000 accrued
since the fiscal year 1922, or during the budget period.
These surpluses resulting from economies in expenditure and liquidation
of assets, in addition to the sinking fund, reduced the public debt to
$17,600,000,000 on June 30, 1928. This is a reduction of $8,900,000,000
as compared with the peak figure of August 31, 1919. During the fiscal
years 1920-8, inclusive, there was an average annual reduction of $878,000,000. Our debt is one-third paid. The total saving in interest, through
debt reduction and resulting lowered interest rates, has totaled for all of
this period over $950,000,000.
The contribution of the Budget to this magnificant total surely commends
the Budget System—if any commendations were needed—to the financial
programs of the States and their local subdivisions. These have not shown
comparable economy.
With characteristic brevity and clarity President Coolidge has stated
the menace involved. He has said:
& . ."Students of business trends, experts in economic conditions, view with
alarm the continued advance in the cost of government. The cost of government
In the United States, Federal, State and municipal, in 1921 was 39,500,000.000.
In 1925 it had Increased to 811,121,000,000. During that period the National Government had reduced its expenditure by $2,000,000,000. In that period States,
counties, municipalities and other taxing agencies Increased their cost by 33,500,000.000. The year 1926 recorded another advance in cost to al l.607,000.000.
This steady Increase In governmental cost on the part of the States and municipalities is a menace to prosperity. It cannot be ignored. It cannot longer continue
without disaster. It will not correct itself. I can conceive no more dependable
guaranty of genuine prosperity than a nationwide effort in behalf of lees and wiser
spending by State and local governments."
Your Taxation Committee believes that the Investment Bankers' AssociaReport of Taxation Committee—Work Divided Between
tion, as a national body and also through the Regional Groups, can be of
Federal and State and Local Committees.
material assistance in making effective the steps now being undertaken
The division of the work of the Taxation Committee of by the Chamber of Commerce of the United States to have a country-wide
of this unsound tendency in the financial programs of the
appreciation
Federal
a
the Investment Bankers' Association between
States and their subdivisions. The work of the Association in taxation
Taxation Committee and a State and Local Taxation Com- matters is now to be divided between a Federal Taxation Committee and a
mittee was announced in the report of Carroll J. Waddell, State and Local Taxation Committee. The latter will address its attention
of Drexel & Co., Philadelphia, Chairman of the Taxation to this vast and complex field. During the progress of the survey which
is already under way in many sections of the country the Regional Groups
Committee. The belief was expressed in the report that and the member houses can well lend their support to corrective
measures
the Investment Bankers' Association, as a National body, and in particular can give counsel as to what we know to be sound principles
of
State
municipal
and
financing.
shall
We
material
of
thus
again
be
can
Groups,
meet
and also through the Regional
our
obligation—to the civic body and to our clinets
invest in the obliassistance in making effective the steps now being under- gations of the States and their subdivisions. Thewho
Association may take
taken by the Chamber of Commerce of the United States just pride in its past service to tie public and to the investor. WI
Nov. 3 1928.]
2477
FINANCIAL CHRONICLE
greater opportunity for service has ever been presented than is before
it now. .
1928 Revenue dot.
We have referred to the Association's recommendations for the 1928
revision of the Revenue Act. For purposes of comparison and of record
we now give those recommendations and with each a statement of the
manner in which that phase was treated in the new act.
Individual Income Tax Rates.
Reecamnendation: "The further reduction of the rates of the individual
income tax so that the burden of taxation caused by war conditions may
be restored to peace time levels as rapadly as is possible and as is consiistent with the Government's requirements for revenue."
The normal tax and the surtax on individuals were not changed from
the rates in the 1926 Act.
Corporation Income Tar Rate.
Recommendation: "That an equitable distribution of the tax burden
calls for a reduction in the corporation income tax until it accords more
nearly with the rate of the normal tax on individual incomes."
/
2% to 12%. There was
The corporation tax was reduced from 131
more agreement in Congress upon the merit of a reduction in the corporation income tax rate than upon perhaps any other phase of the
Revenue Bill. The House of Representatives incorporated in the Bill, in
an effort to relieve the tax burdens of small corporations, a graduated tax
of 5%, 7% and 0% upon the taxable net incomes of $7,000, $12,000, and
$15,000, respectively. The Finance Committee of the Senate struck this
provision from the Bill upon the ground that it could not be supported
on any sound principle of taxation.
In our opinion it properly felt that in the case of corporations the size
of the income does not reflect ability to pay. The capital invested in a
business must also be taken into consideration. A corporation with a
$1,000,000 income, which represents an actual earning of only 5%, is
certainly in no better position to pay taxes than a corporation with a
815,000 income, which represents an earning power of 20%. If an investor
has $1,000 in the $1,000,000 corporation there is no justification in reduc/
2%, while if he invests the same
ing the fruits of his investment by 121
$1,000 in a $50,000 corporation his income would be reduced by only 5%,
7% or 0%. The Finance Committee Qf the Senate further felt that the
graduated tax on corporations would open new avenues for tax avoidance
by the simple expedient of forming several corporations and distributing
their earnings so as to keep them within the law brackets. We refer to
this matter of a graduated tax on corporations for purposes of future
possible reference because the principles involved were so unsound.
and domestic partnerships. This provision places no additional hardship upon
domestic corporations, for, their liability under their contract being limited to 2%,
they cannot be called upon to Pay any greater amount to the bondholder, On the
other hand, under the proposed scheme the Government will get the full tax to which
it is entitled.
This new requirement as applied to foreign held bon* is a putter of
especial importance to our Canadian members and to the nrmbers in "*.he
United States who have branches in Canada. We feel that we did eYerYthing possible to have this Section of the Act amended so as ;to restore
the previously existing provision. We regret the possible reniitance which
it places upon the distribution in Canada of securitie• issued in the
United States and the restriction of foreign markets for mch bonds. In
connection with the tax on bond interest the only advantage enjoyed by
alien residents of countries: contiguous to the United Staten over Leah/cuts
of other countries is that residents of contiguous countries are allowed
the benefit of both personal exemption and the credit for dependents
whereas residents of other countries have the benefit of only the persona]
exemption. A nonresident alien may receive the benefit of these exemptions by filing a claim with the withholding agent. This, of course, is
a regrettable necessity. Where the gross income of a nonresident alien
from sources within the United States does not exceed,the personal exemption and the credit for dependents, if a resident of Cana* or Mexico,
the owner may file an exemption certificate with the withholding agent
before June 1st and the withholding agent upon receipt of the certificate
properly executed will pay to the owner of the bonds any tax withheld
during the previous year. The filing of this certificate is in addition to
the ownership certificate used when the coupons are deposited for payment.
amsilidated Returns.
Recommendation, "That Section 240 (d) of the Revenue Act of 1926
be amended to read as follows:
"(d) For the purpose of this section two or more domestic corporations shall be
deemed to be affiliated( )lone corporation owneat least95% of the stock of the
other or others, or(2) Ifs thatt95% of the stock oftwo or more corporations is owned
by the same Interests. A fused in this subdiv on the term 'stock' does not include
stock which is limited and preferred as to dividends. This subdivision shall be
applicable to the determination of affiliation for the taxable year 1925 and esolt
taxable year thereafter."
The only change in this recommendation was the elimination of the word
"non-voting" from the following sentence:
"As used in this subdivision the term 'stock' does not include non-voting stock
which is limited and preferred as to dividends."
The reasons for our support of the above recommendations are given in
the attached brief which was filed with the Ways and Means Committee.
This section as finally passed did not essentially change the former definition of affiliated corporations nor did it make the suggested change in
Estate Tax.
Recommendation: "The immediate repeal of the Federal estate tax, upon the definition of the term "stock."
The privilege granted affiliated corporations of filing Consolidated Rethe ground that death taxes should be left to the several States and that
turns, which the House Bill denied after 1928, waas restored by the Senate
such levies should be used by the Federal Government only in times of
Finance Committee with certain necessary amendments to eliminate the
war emergencies."
administrative problems of the present law. The Regional Groups effecWe regret to report that the Revenue Bill as it was passed and signed
co-operated in our work toward the curing of the unfair propene'
has no change from the present Federal estate tax. There are certain tively
elements in the House of Representatives which are so adamant against in the House Bill. Appended to this report is also a copy of statement
of
the
Consolidated Returns Section of the Revenue Bill which was sent
the repeal of this tax that thus far they have been able to block any
material progress toward its repeal. The Treasury Department recom- to the Ghairman of each of the Regional Groups to assist them in securing
strong representations to Washington. The Revenue Bill as it passed the
mended its appeal.
House proposed to tax income accumulated before March 1, 1913, although
Capital Gains and Losses.
previous statutes have exempted such income recognizing as a fundamental
Recommendation: 'The elimination of both items of capital gains and
principle that property acquired before the amendment was capital and net
capital losses for purposes of the income tax."
income. We are glad to report that the Senate Finance Committee has
No change in this phase of the Tax Bill was made from the provisions
restored without change the provisions of the present law which have been
of the Revenue Act of 1926. There is a vast amount of educational work in force, except or certain amendments, since the 1916 Act.
in Washington and throughout the country, which is obviously necessary
State Reciprocity in Taxation of Intangibles of Nonresident Decedents.
before any real progress is to be made toward the elimination of both
The movement toward reciprocity between the States in the taxation of
items of capital gains and capital losses for purposes of the income tax.
the stocks and bonds of nonresident decedents continues to make real and
In determining gain or loss on sale of property by an estate or by a deserved progress. In brief, this proposition provides that the States,
beneficiary the basis was changed to the value of the property at date of
through mutual agreement, will forego the right to tax the stocks and
decedent's death rather than as of date of acquisition as previously probonds of nosires'dent decedents of the States which reciprocally will not tax
vided. The same rule applies in the case of bequests of real or personal the stocks and bonds of nonresident decedents of the enacting States. The
property, the transfer of realty through intestacy, or the creation of re- movement i bised upon the strong desire to remove from our taxing system
vocable trusts with reversion to grantor's estate in case of death. In all the duplicate and henae inequitable taxation by several taxing jurisdictions
other cases the basis for determining gain or loss is the fair market value of the same assets in a decedent's estate.
at time of distribution to the taxpayer. In the case of property acquired
The progress of the mOvement has been as follows:
by a corporation during affiliation with another, the gain or loss is to
In 1925, Pennsylvania, New York, Massachusetts and Connecticut enacted
be determined under regulations prescribed by the Commissioner of Internal reciprocity statutes, and this brought these States into reciprocal relations
Revenue and without regard to inter-company transactions. This pronot only with each other but with Florida, Nevada, Alabama and the
vision does not apply to any taxable year after 1922 unless a consolidated District of Columbia, which had no inheritance taxes,
and also Georgia,
return was made.
Vermont, Rhode Island and Tennessee, which did not at that time tax
Foreign Held Bonds.
the intangibles of non-resident decedenta.
Recommendation: "The exemption of the interest on bonds, notes and
lu 1926, New Jersey joined the movement by repealing all taxes en the
other obligations of American corporations held by non-resident aliens intangibles of non-resident decedents.
from the application of the United States income tax when the country of
In 1927, Massachusetts, Colorado and Delaware repealed all taxes on the
which such non-resident alien is a citizen or subject in like cases extends stocks and bonds of non-resident decedents; and Maine, New Hampshire,
reciprocal rights to citizens of the United States."
Maryland, Oregon, Ohio, California, Illinois and Georgia enacted reciYour Committee stressed this recommendation and included it in th4 procity statutes.
Brief filed with the Ways and Means Committee of the House of Represen
In 1928, the State of New York, which was temporarily out of 'ed.
tatives. The Revenue Bill as it was passed gives no relief to the situation. procity by reason of a decision of its Court of Appeals, re-enacted reciAs we have pointed out in prevfous reports, this matter is so interrelated procity as of March 12 1928 ; the State of Mississippi enacted reciprocity;
with the intricacies of the whole problem of international double taxation the State of Virginia repealed all taxes on the stocks and bonds of nonthat it is difficult of solution at this time.
resident decedents, as of Jan. 1 1029; and the province of Ontario of the
When the Bill came from the House we found that under the proposed Dominion of Canada enacted reciprocity not only with the other provinces
new requirement in the case of tax-free covenant bonds the withholding of the Dominion, but also with the States of the United States.
shall be at the rate of 5% in the case of non-resident alien individuals and
As a result of this general movement, reciprocity after Jan. 1 1929
/
2% in the case of foreign corporations if the will
foreign partnerships and 111
exist between twenty-three States of the United States, containing
liability assumed by the obligor does not exceed 2% of the interest. In a almost 70% of the population and wealth of the country, and the District
Senator
Reed
Smoot,
to
Chairman
addressed
of
the
letter
Finance Com- of Columbia and the Province of Ontario.
mittee of the Senate, copy of which is attached to this report, we proDuring the year 1929, most of the Legislatures of the States which have
tested against this proposal. The attitude of the Finance Committee of the not yet enacted reciprocity will hold their regular sessions. This affords
Senate is given in the following quotation of its report,
an unusual opportunity for the States which have not yet legislated on this
The present law provides for the withholding at the source, In the case of bonds, subject to take favorable action. If all the States would enact reciprocity,
of a tax of 5% of the interest when paid to non-resident aliens or individuals or part- then the basis of inheritance taxation would be greatly simplified. There
nerships, and a tax equal to the income tax rate In the case of interest paid to foreign
corporations. This rule is subject to the exception that if the bond contains the would be a tax imposed by the Federal Government on the net value of
so-called tax-free covenant clause by which the obligor agrees to pay the interest the estate with, however, a large exemption. In most of the States, there
without deduction for any tax which he may be required or peril-lined to retain them. would be State taxes imposed upon residents, including all of the intanfrom, then the rate of withholding shall be at the rate of 2%. This provision of the
Present law is based upon the conviction that it would be unfair to domestic corpora- gibles (stocks and bonds) of the decedent, and upon non-residents, ear.
tions to make them pay the entire tax at rates substantially higher than were con- ering realty and tangible personal property permanently located within
templated when the bonds were issued. It is brought to the attention of the com- the State, as provided in the decision of the United States Supreme Court
mittee that a large number of the tax-free covenant bonds issued since the beginning
of the war contain a clause by which the liability of the obligor is limited to 2% of in Frick's Estate. If this result can be obtained, it is an attainment
tee interest. The committee therefore inserted a provision In the bill In section 143 worthwhile.
(a) (1) under which, in cases where the liability assumed by the obligor does net
1Ve give below a copy of the model reciprocal inheritance tax law
exceed 2% of the interest, the withholding shall be at the rate of 5% In the case of which has been followed by most of the States in their
legislation en this
non-resident aliens and partnerships and 11%% In the case of foreign corporations,
while'remaining at 2%, as under the presentin the case of citizens, residents subject:
2478
FINANCIAL CHRONICLE
tangible
iliiiniposed by this Act In respect of personal property (except
payable (a) if
persenal.pritipertr having an actual sites In this State) shall not be
State or Territory of the
the tritesfetor at the time of his death was a resident of atime
of his death did not
United States, or of any foreign country, which at the
of property of residents
Impose transfer team'death tax of any character in respect
situs In such State
actual
an
having
property
personal
tangible
State.,(except
of this
State, Territory or country
or Territory or foreign country). or (b) if the laws of the
a reciprocal exempof retsidekee of the transferor at the time of his death contained
taxes or
tion provision under which non-residents were exempted from transfer
tangible perdeath taxes of every character in respect of personal property (except
State. Territory or
sonal Prciperty having an actual sites therein), provided the
to residents
country of:residence of snob non-residents allowed a similar exemption
For the purposes
of the State, Territory -or country of residence of such transferor.
shall be
States
of
United
the
possessions
and
Columbia
of
District
the
of Mg section
considered TerrItorfee of the United States.'
investof
sale
the
in
engaged
are
who
The members of our Association
ment securities have special reason to understand the way in which these
Stgie tfikeä beim interfered with the free flow of capital for investment purposes. We ask, therefore, your co-operation, particularly those who are
resident in' the twenty-five States that have yet to -act upon this subject,
in securing appropriate legislation in 1929.
Your Committee therefore reports the following resolution:
"Resolved, Mat the Investment Bankers Association of America hereby reaffirms
as sane,
its endorsement Of the movement toward reciprocity in inheritance taxation
residents of
equitable and just, and urges Its members, particularly those who arematter
to the
bring-the
to
movement,
the States which have not as yet joined in the
attention of their
. . Legislatures."
Appended ire: .
1.,Brief submitted to the Committee on Ways and Means of the House of Representatives.
2. Copy of letter addressed to Reed Smoot, Chairman of the Finance Committee
of the United States Senate, stressing certain recommendations. of consolidated
3. Memorandum sent to Regional Group Chairman on subject
r.(MTH 8eCtIOR• , .
Respectfully submitted,•
TAXATION COMMITTEE.
Carroll J. Waddell, Chairman
George V. Rotan
Hollis T.(Belson
Frank W.Camp
Albert E. Schwabacher
Robert R. Gordon
Thomas S. Clayton
Charles H. Schweppe
Arthur E. Kusterer
A. C. Coney
Othe C. Snider
T. Stockton Matthews
Curtis B. Dail
Eugene E. Thompson
Robert H. Moulton
Charles D. Dickey
Meade 0, mums
Walter S. Robertson
Joel E. Ferris
:.
Report of Education Committee.
of the Marshall& Ilsley Bank of Milwaukee,
Daggett,
J.H.
in.,presenting. the report of the Education Committee,
stated that the report would also cover the report of the
Edtioatiolial Director, Samuel 0. Rice, of Chicago. In his
report. Mx.,, Daggett announced that "the Education Committee has; arranged to supply to the American Bankers
Association, for distribution to the members of that organization, an •educational service on the investment account of
banks." He also stated that "the year's work of the committetrhas seen a still larger use.of educational articles, so
that to-day the Educational' Director cannot supply the
demand for such matter." The report of the Education
• ,
Committeefollows—
121..
the young college man to choose his' vocation 'and to avail' himself of
the training his college offers toward that vocation. The chairman of
your Edhcation Committee wishes to remark here that the credit for this
work largely belongs to a former chairman of the committee, Mr. Robert
Stevenson, who two years ago took up the study 'of vocational guidance
in the colleges, in relation to investment banking. In to-operation with
executives from eleven member honsesin New York; Mr. Stevenson held
a number of conferences with authorities of larger Eastern universities.
The first effort to obtain a complete picture and job analysis of the bond
business was by means of articles written by outstanding men in different fields of investment banking. Unfortunately, this material proved
much too technical for the purpose in mind. The Educational Committee
is most grateful to the members who so graciously gave their time and
effort to the preparation of these articles. This material will not be
wasted. It will be put to good use by the educational department, but
for the purpose of vocational guidance for men contemplating or just
entering the bond business it was found to be far above their heads.
Your committee makes reference here to this incident because it wishes
to acknowledge its gratitude to the various members. Members wishing
copies of the "job analysis" may obtain them by writing to the office
of the educational director.
Your committee from time to time is called upon by member houses
and by universities in member cities to suggest practical courses or to
co-operate in the giving of such courses for the benefit of salesmen in
member houses. The committee has co-operated in a number of such
undertakings and, In the committee's experience during the last five
years, it does not seem that general courses are practical for most of the
men already in the business and who wish further training. On the other
hand, training courses that have followed the so-called case-book method
have proved highly successful. In these courses, the actual, active
problems of every-day bond selling constituted the course and thus supplied
something of practical value for every man, from the ambitious youngster
in the cage to the salesman who had been selling perhaps several yearsOne of the most successful of these courses, given by various groups of
the Association, was that of the Michigan Group. Its results so impressed the educational director that the committee obtained from Mr.
L. A. Morgan of Detroit, who ably conducted the course, a manual giving
complete details of the class work, problems and demonstrations in selling.
This manual is to be used with W. NV. Townsend's notable work, "Bond
Salesmanship," which, it will be recalled, was written several years ago
at the suggestion of this Association. The problem of efficient personnel
is so vital to the investment business that the committee believes it
is performing a worth-while service in these efforts to aid in training
men who are just coming into the business. All group organizations or
member houses wishing copies of this manual may obtain them from the
educational director. We believe they will be found very practical in
training classes, as the manual has'proved effective in actual work and
was prepared by an efficient sales manager of many years' experience.
During the year, two substantial contributions to investment literature
have been made through the co-operation of your committee with other
organizations. One of these is the book "Advertising Investment Securities,"
which was edited by the educational director. More than 6,000 of these
books have been sold by the publisher. The Association receives a small
royalty on this book. The other work is the "International Finance Source
Book," edited by the educational director and published by this Association. A copy of this book was presented to each member house and
the remainder of the limiteti edition is being sold.
The year's work of the committee has seen a still larger use of educational articles, so that to-day the educational director cannot supply
the demand for such material. If we may against refer momentarily to the
Rochester experiment it is proposed to distribute to other cities the
articles used in that campaign. This will be done through Mr. John J.
O'Connor of the Finance Division of the Chamber of Commerce of the
United States. In fact, the Rochester experiment is to demonstrate the
practicability of such a campaign. It will be extended by Mr. O'Connor to
those of 1,400 local chambers of commerce and Better Business Bureaus
that may have facilities to employ it for its intended purpose, that of
protecting the community buying power by means of education on sound
Investing. By this way it is believed that some of the pressure will be
removed from the educational director and his assistant and their efforts,
at the same time be made still more effective.
There are far too many details to make this report fully descriptive
of the Association's educational work. We can, so to speak, but touch
only a few high spots. In so doing we must omit two important enterprises that are in the embryonic stage, but which we feel will add quite
a substantial bit to the cumulative effort to overcome financial illiteracy.
Respectfully submitted,
EDUCATION COMMITTEE.
To,,ihs Board of Governors:
of its
The education committee is pleased to report that a number
been
projects, of which it advised the convention of 1927, have either
most
accomplished or are in a substantial state of progress. Perhaps
ExperiYork,
interesting among these is that called the Rochester, New
of the
ment. In co-operation with the Investors Protective Bureau
of ComRochester Chamber of Commerce and the United States Chamber
methods of promerce the committee is endeavoring to establish practical
buying power
tecting the community buying power by building up that
comthrough educational activities in relation to sound investing and the
work, which
prelimniary
mon. sense handling of money. After much
was forindicated the feasibility of the plan, the so-called experiment
Rochester,
malty lunched at a meeting of 400 leading business men of
AmerSept. 26, and at which Silas IL Strawn, retiring President of the
address. As a part of this
Cap. Bar Association, made the principal
of
number
a
Bureau
work the committee has supplied to the Rochester
helpful and dependable articles on investing and kindred topics which are
appearing in the three leading daily papers of Rochester and in two
conforeign language newspapers. Thus every day there is at least one
structive article of this nature and some days five or more articles. The
be
to
booklets,
committee, has also supplied manuscripts for four basic
distributed by the bureau, and has outlined the first of a proposed series
During the regarding of Mr. Daggett's report after the
of popular courses on investing. The first course will be for school teachers.
first paragraph on page 4 thereof Mr. Daggett made the
Subsequent coursee. will depend on how this first course works out.
Your, Education Committee has arranged to supply to the American following remarks:
Bankers Association, for distribution to the members of that organizeSince the Convention of 1927 the activities of the publicity department
tion,,an educational service on the investment account of banks. The Chair- have been merged with those of the educational department. Your comman of your committee, with the executive Vice-President, Mr. Little, mittee is gratified to report that this consolidation of Association activities
off'.
and the educational director, Mr. Rice, had several conferences with
has been highly successful. It has eliminated much duplication of work
Male of the American Bankers Association who requested this service of and expense and has added greatly to the efficiencY of the educational
the Investment Bankers Association of America. It will be recalled that and the publicity work.
last
we submitted this proposal to the meeting of the Board of Governors
As has been indicated elsewhere in this report, the work of the eduMay'and it was approved at that time. It has not seemed propitious to cational department has constantly grown, until its demands far exbegin this educational service thus far, but it will be in practical oper- ceed the capacities of a small office, such as now constitutes the deation in the near future. Perhaps it should be explained that the ser- partment In the course of a slow and gradual expansion your committee
vice certainly will not presume to offer a substitute for the first essential has decided to add a second assistant to the educational department.
in the handling of secondary reserves or bank investment accounts. That
first .essential is the professional service that provides able analysis and
The following discussion ensued:
service
the proper selection of specific securities. In other words, the
The President:—Would you like to ask Mr. Daggett any questions?
bureau,
rating
a
to
resemblance
any
avoid
distinctly
will
we will provide
Mr. Rice, have you anything to add?
but it will carry the principles that should be better appreciated and
Mr. Samuel 0. Rice (Chicago):—I have nothing particular to say, Mr.
understood and that no doubt will result in a sounder understanding President. It would be a matter of taking about ten steps to say about
accounts.
investment
and wider use of the proper securities in bank
five words. I really tried to write you a very nice report this time, but
The committee has in hand a "jab analysis" of the bond business, which every time I wrote a paragraph Mr. Daggett and Mr. Taylor would say:
has been prepared at the request of a number of large universities and ''I want that in my report." That is what happened; they took it all for
which will be used for life guidance of college students. While this work their report.
Is -primarily for college men, it no doubt should be useful to all young
Mr. Daggelt:—I would like to add, since Mr. Rice is so very modest
Much has been written of the bond about this, in connection with the taking over of the publicity work into
men entering the bond business
been
has
this
apparently
but
business as a vocation for college men,
the educational department, we have at this convention more representalargely uncorrelated and. fragmentary. So far as your committee is aware, tives of newspapers than we have ever had before. As a matter of fact.
this is the first comprehensive "job analysis" ever made of the bond we have so many newspaper men here that we ran out of press badges
business. We believe it presents quite a complete and accurate picture before they had all rgistered.
and that it will be helpful in bringing promising young men into the
]The report was duly adopted.]
business and keeping out those not fitted for the work. It should enable
Ni)*. 31928.]
FINANCIAL CHRONICLE
Report of Publications Committee—Review of Books.
The brief report of the Publications Committee, presented
by the Chairman, Ralph Fordon, of Backus, Fordon & Co.,
Detroit,follows—
Since February, 1928, when this Committee began to function, ten books
have been examined critically, and reviews prepared for them, and sent to
the Bul etin for publication. Four of these reviews have not as yet appeared.
In addition to these ten, two books were read, one with the idea of
placant it under the sponsorship of our Association, and the other for
review purposes. The first mentioned was not sponsored, and the second
has not as yet been reviewed. The Committee did sponsor, and the book
is now avallablo—"Security Syndicate Operations," by Arthur Galston.
REVIEWS.
The War Debts. By Philip Dexter and John Hunter Sedgwick.
Explanatory Outline of the Functions and Requirements of Bankers, Trustees,
Registrars, Transfer Agents and Lawyers in Connection with the Issue of Investment Securities by William D. Eaton.
Keane's Manual of Investment Trusts by C. P. Keane.
The Peirce Thesartur of Security Distribution and Investment. By Frederick
Peirce & Co.
Security Syndicate Operations. By Arthur Galsten.
The Reserve Banks and the Money Market. By W. Randolph Burgess.
The Disregard of the Corporate Fiction and Allied Corporate Problems. By
I. Maurice Wormser.
Advertising Investment Securities by the Investment Research Committee of
the Financial Advertisers Association.
Financial Advice to a Young Man by Merryle Stanley Rukeyser.
;tabilization of the Mark by Dr. Schacht.
The,
[The report was unanimously accepted.]
their reports will be protected. The work of the sub-committee would be
greatly facilitated if the members of the Association will give it more facia.
Plans for Subsequent Work.
From the data already on hand and promised, it is planned to:
1. Prepare a uniform classification cf accounts. There will be a limited ntimVer
of primary accounts. Its purpose is to have a common terminology so that gross
profit, operating expense, and other vital terms will represent the same facts in
each house. Each member can add sub-accounts as needed.
2. Prepare a tentative list of coat factors of value to the executives such as-cost
per bond sold, gross profit per salesman, &c.
3. If enough members will submit actual figures, the composite cost of each cost
factor referred to in the preceding paragraph will be calculated, subdivided by
types of houses. The actual cost of a member can then be compared with this
standard.
Respectfully submitted
Sub-Committee on Coat Accounting,
Business Problems Committee.
I. B. A. of A.
Following the reading of the report Mr. Himmelblau said:
Those are the important points. Frankly speaking, from our personal
observation it seems that too many members have their eyes on the big
board at the present time. They are not looking at the merchandising end
of their business. Until that condition is remedied the progress is bound
to be slow.
The President commenting said:
Gentlemen, in this report there must be some questions you would like
to ask Dr. Himmelblau. The chair has repeatedly requested that we have
some questions from the floor. This is your meeting. Let's create some
real interest from the floor. One of the main struggles of the Board is to
develop Meetings here which will be of real vital interest to you all.
Dr. Himmelblau added:
I will be glad to answer any questions from anyone in the hall. You
Report of Sub-Committee on Cost Accounting—
will not ask them here. The trouble is you are afraid to ask a question
Business Problems Committee.
because you have not studied the matter carefully enough to be real sure
of the conditions, so if anyone wishes to ask questions outside, I will be
Dr. David Himmelblau, of Northwestern University, in glad
to answer them.
presenting the report of the Sub-Committee on Cost AccountNo discussion followed; a motion for its adoption was
ing, stated that "this report was originally addressed to made immediately after the conclusion of Mr. Himmelblau's
William L. Ross, Chairman of the Business Problems Com- remarks, and the report was unanimously adopted.
mittee, but since that committee did not meet, he would read
the report to the entire gathering.
Resolution of Investment Bankers Association on
,The report follows:
Death of Governor Strong of Federal Reieriei
Oct. 12 1928.
Mr. William L. Ross,
Bank of New York.
•
Chairman, Business Problems Committee,
Following the receipt of news of the death of Governor
Investment Bankers Association of America,
Benjamin Strong of the Federal Reserve Bank of New York,
33 S. Clark Street,
Chicago, Illinois.
the Investment Bankers Association of America, in annualDear Mr. Ross:
The Sub-Committee on Cost Accounting submits the following report convention at Atlantic City, adopted on Oct 16 the following
covering its activities during the past fiscal year. '
resolution presented by Hugh W. Grove:
Interim Report at May 1928 Meeting.
At the May meeting of the Board of Governors I submitted the following
rePort•ofprogress on the work in cost accounting. This report appears on
pages 128-142 of the July 12 1928 I. B. A. of A. bulletin.
"Last spring It was suggested that Northwestern
of the cost accounting practices employed by the University undertake a study
members of the Investment
Bankers Association of America. At that time there
was no one available to
undertake this work. In November 1927 Mr. A. H. Andruss,
a member of the
staff of the Department of Accounting, agreed
to
take
up this work under my
direction.
"Progress has been slow because only a few firms submitted
all the information
they had: a few refused to submit any information: the
larger number described
what they were doitg, but were unwilling to submit forms
used or any figures
relating thereto. We were given the impression that many
members consider
whatever methods they use to be in the nature of a trade
not to be disclosed
to others. It was deemed Inadvisable to press the mattersecret
and
the
work therefore
was limited to assemniing whatever information could be had. Twenty
firms
studied and the results ol this study are contained in the attached summary were
pared by Mr. Andruss printed in I. B. A. of A. Bulletin, Vol. XVI, No. 5, Julypre12
1928, on pages 129-142.
"Review of this summary discloses the large variations In the internal organization of the business conducted by members of the Association.
Before &sting
can be undertaken it is essential to decide upon the ccsting unit. Shall it be (a) the
department, (b) the security handled, either individually or by class, or (c) the
salesman? What cost information is of most importance to the executives of a
bond house? We found houses figuring costs by salesmen but not income
by
salesmen; others Ignored costs and endeavored to control expenses
through a budget:
others analyzed income by class of securities sold but did not make
a
analysis of costs: others included part of the expenses in the cost corresponding
the bonds
through some form of "loading" and were unwilling to disclose howofthis
loading
factor was calculated. Only three out of twenty houses
gave us actual
figures from the books. The others were reluctant and interviewed
it was deemed inadvisable
to press the point. It should be apparent to everyone that actual
figures are
needed to test the soundness of any proposed costing procedure. It is
a fundamental
principle that the clerical expense of costing must not be out
of
proportion
to the
monetary amounts involved.
"It would be a fairly simple matter to state 118 a
proposition the procedure which I believe ought to be followed but thattheoretical
procedure would merely represent the opinion of one person and would be influenced by
the type of houses he
was acquainted with. What ought to be done is to formulate
principles and procedure from a study of houses of different types and the
procedure should be sufficiently elastic to be condensed for small houses and expanded
for large hcuses
without altering the basic factors."
Questionnaire.
During the discussion at the May meeting many members took
the peed
tion that their houses were "different" and therefore the analysis
of twenty
houses was not sufficiently typical of the association's
membership. To
ascertain the facts, a questionnaire (copy attached hereto)
based on the
previous study was prepared in July. As the mailing was
delayed until
September 29, it has not been possible to tabulate and analyze in
time for
the October meeting the 150 replies received since Oct. 1. The
completed
tabulation will be ready for the January meeting,
Data Held Confidential
Frequent reference has been made to the difficulty of obtaining
actual
figures from the first twenty houses studied. Most of this
difficulty was
due to the failure of the members to realize that it was possible to
so
assemble and compile data as to conceal the identity of the contributing
houses. The same question arose several times at the White
Sulphur
meetink and since.
However, it is a pleasure to report that one member voluntarily sent in
all his financial statements and we have invitations from four
members to
make detailed studies of their houses. May I take this opportunity
to
again assure the members that the data is available only to myself and
one
assistant. The files are not open to the Association members of the
committee. Moreover,the data is so filed that no clerk or other person examining a file can ascertain the name of the house from which it
came. Under
such operating conditions members can feel assured that the privacy of
The Investment Bankers Association of America,in convention aiis3mbled
at Atlantic City this sixteenth day of Oct. 1928, learns with sorrow and
regret of the sudden death of Benjamin Strong, Governor of the Federal
Reserve Bank of New York,and wishes to express its sena()of the profound•
loss incurred by the Nation and to the business community of this country.
He was a capable and earnest public servant, bringing to his work the
qualities of a scholarly mind and a high and indefatigable sense of duty to
the public.
Therefore, be it Resolved, that this Association herewith records its deep
appreciation of his services and its sincere sorrow at his death.
Further. be it Resolved, that a copy of these resolutions be transmitted to
the Federal Reserve Bank of New York and to his family.
The President requested an expression of the views on
the resolution by a standing vote. The audience arose in
silent tribute. The President: The motion is unanimously
carried.
Report of Business Conduct Committee—Procedure in
Arbitration of Disputes Between Members.
The annual report of the Business Conduct Committee of
the Investment Bankers' Association dealt with the form of
circulars offering public service holding company securities,.
and the procedure to be followed in the arbitration of disputes and misunderstandings between members of the Association. It was presented as follows by Kelton E. White,
of G. H. Walker & Co., St. Louis:
The year 1928 has been a most interesting one for this Committee and
we trust that our work, at least to some small degree, has produced
beneficial results for our membership. Exactly twenty-three comes or
matters involvini, business conduct have been presented to the National
Committee, all of which have been disposed of except three, which are
still pending and which will be referred to the 1929 Committee. The
number of cases handled may seem rather large in some of our members,
but your Committee takes the contrary view and believes that it is indicative of a healthy condition in that it is proof that each year our membership is willing to submit a greater number of their misunderstandings and
disputes to arbitration. It is neither appropriate nor possible to present
to this Convention the • individual cases that have been brought to the
attention of this Committee. However, we have made a synopsis of each
one and this with all of the coaespondence relative to the same is on file
for inspection by the Officers or Board of Governors at any time.
While a great variety of matters have been referred to the Business
Conduct Committee since the Seattle Convention, there are only two that
we will ask this Convention to consider. First, the form of circulars
offering public service holding company securities, and second, the procedure to be followed in the arbitration of disputes and misunderstandings
between members of this Association.
Public Service Securities Circulars.
While this subject will be dealt with in detail by the Public Service
Securities Committee, nevertheless, the Business Conduct Committee would
be remiss if it did not again direct the attention of our membership to
the position that the Association has taken in reference to the general
form of circulars offering public service holding company securities. This
matter has been constantly before the Business Conduct Committee this
2480
FINANCIAL CHRONICLE
Securities
year and we have had the active support of the Public Service
Committee in the discussion of the same.
First, we wish to reaffirm the findings of the1922 Public Service Committee Feeport (see 1922 Year Book).
1923 Ethics and Business Conduct Committee Report (See 1923 Year Book).
1928 Circulars Committee Report (See I. B. A. of A. Bulletin. Vol. XIV. No. 7)•
1927 Business Conduct Committee Report (See 1927 Year Book).
Furthermore, this Committee is of the opinion that in order to confirm
utility holding
to "Better Practice" in offering the securities of public
companies bankers should adopt one of two methods; either,
with
capitalization
(a) Seek credit on a basis of a holding company's
statement of the company's incomes and expenses and not a statement of
consolidated earnings and expenses of the company's subsidiaries, or,
(b) Seek credit on basis of a consolidated statement of capitalization
of the holding company and its subsidiaries with a statement of the earnings, expenses and underlying charges of the holding company and its
subsidiaries.
In our opinion no set of rulings can be set down in advance to guide
members as to the completeness of information released because the scope
of business carried on by so-called public utility companies varies greatly.
Final judgment as to the adequacy of the information released must be
left, as heretofore declared, to the opinion of the Board of Governors.
Arbitration.
At the May meeting of the Board of Governors, the Business Conduct
Committee wad directed to prepare definite recommendations as to desirable
procedure to be followed in the settlement of money differences between
members of this Association. This raised numerous questions and it therefore seemed wise to your Committee to review the whole subject of
arbitration and procedure which had been dealt with in many different
ways by various committees and to try to establish in definite and concrete form a procedure that could be followed by our Association in the
arbitration of disputes. We, therefore, recommended and the Board of
Governors has approved and adopted the following:
Procedure in Piling Complaints.
If, after a frank discussion and a conscientious effort to effect a settlement, there still remain certain differences between members of this Association that cannot be privately adjusted and it seems necessary to file a
complaint with the Business Conduct Committee, it should be done in a
business-like manner without animosity and in accordance with the following procedure that has been approved by the Board of Governors.
However, this Committee would first call attention to the following
Resolution, which was unanimously adopted by the Board of Governors
on May 18th, 1928:
&mired, That It Is the sense of the Board of Governors that neither the group,
nor the Board of Governors, nor the National Business Conduct Committee has the
power to adjudicate money controversies of disputes between members.
We also call attention to the following resolution which was unanimously
adopted by the Board of Governors on May 17th, 1928:
Resalved, That nothing contained in the resolution adopted by the Board of
Governors at its session held on the evening of May 18 1928, with reference to the
power of the association to decide disputes involving money differences between
members snail lie construed as preventing any proper committee of the Association
or of any Group from giving decisions in any such cases, either now pending or
hereafter arising, at the request of both parties interested and upon their prior
agreement in writing to abide by such decision when rendered. Such interested
parties shall also first agree in writing that neither the Association nor any member
Shall be subject to any liability by reason of any such decision. Such decision
when rendered shall be final as between the parties, but shall not preclude further
consideration of any act of either of the parties involved in the dispute, which act
Is of such a character as might make proper and necessary action in respect thereof
under the power of the Association to reprimand, suspend or expel members, and
with respect to such matters the power of the Association shall remain as it is now
or may hereafter be provided.
Resolred, further, That the Business Conduct Committee is directed to prepare
definite recommendations as to desirable procedure to carry out the purposes
expressed in this Resolution, and to report the same at the next meeting of this
board.
After numerous attempts to comply with the foregoing Resolution, the
Business Conduct Committee was forced to admit its incompetency and
sought the advice of counsel. At our request, Mr. Theodore S. Chapman
has drafted the following form of agreement, which we offer as a part
of this report and which we believe will answer the practical situation
in many cases.
FORM OF AGREEMENT AS DRAWN BY MR. CHAPMAN.
THIS AGREEMENT,made and entered into this
day of
. herein sometimes called the first Party.
19—, by and between
, herein sometimes called the first party, and herein some-'
and
times Called the second party, witneaseth:
Whereas a difference has arisen between the first and second parties, wherein
It Is contended that one of the parties is indebted to the other, which said contended indebtedness grew out of that certain transaction between the parties briefly
described as follows:
Whereas the first and second parties desire to adjust the matter of the said contended Indebtedness amicably and without recourse to the courts;
Whereas both parties are members of a group known as the
group
of the Investment Bankers Association of America:
Wheraas the said group was organized, among other things, to afford a means
wherety there might be reached amicable adjustments of differences arising between
its members, and the said purpose 18 customarily accomplished through the medium
of a certain committee heretofore appointed by the said group known as the
Whereas the said committee is now in whole or in part composed of the individuals
hereinafter constituted a board of abritration: and
Whereas the parties hereto desire to submit the difference aforesaid to 8 board
composed of members of the said committee, and have agreed to abide the judgment
and decision of such board:
Now Therefore, the parties hereto agree as fellows:
1 --------------------------------------------------------------------.
------------------------------------------------------------------------are hereby made and constituted a board of arbitration, with full power to examine
all documentary evidence submitted in connection with the controversy aforesaid,
and to hear such testimony as may be tendered pursuant to the provisions hereof.
A chairman shall be designated from among the members of the said board by a
majority vote of the said board. The said board shall likewise designate a secretory
thereof, who may or may not be a member, and certification of any proceedings
or findings of the said board by the secretary thereof shall be final and conclusive.
In the event of the death or resignation of any member of the said board, or of
the inability or refusal to act of any such member (and the remaining members
of the said board by majority vote shall oonclusively determine the inability co
refusal to act of any member), the remaining members of the said board shall constitute the said board for all purposes of this agreement.
2. The chairman of the said board is hereby authorized to fix times and places
whereat a hearing in respect of the said controversy may be had. Not less than
five days' notice of the time and place of each such hearing, not including adjourned
hearings, shall be given by the Secretary to each of the parties hereto and to each
member of the said board. Any hearings noticed as aforesaid may by a majority
vote of the said board be adjourned from time to time, to reconvene at the same
sr a different place, and at an hour fixed.
3. Either or both of the parties hereto may at any such hearing be represented
by mime/ who shall have the right and privilege of addressing the said /card.
4. The said board is hereby authorized and requested upon consideration of all
evidenee, documentary and oral, which may be tendered pursuant to the provisions hereof, and upon conclusion of all argument desired to be made or tendered
by either of the parties hereto or their counsel, to determine in what if any amount
either party is indebted to the other on account of the transaction hereinabove
mentioned,it being expressly agreed that the said board has full power to determine
questions of law and (or> of fact.
[Vat. 127.
5. Each motion, finding, determination or other action before, or, or bygthe
said board shall be determined, made, or reached by a majority vote of the members
of the said board in attendance at the meeting whereat such motion, finding, or
determination, or other action, is made, found, reached, or had, orovided that
there shall be in attendance at such meeting not leas than two-thirds In number
of the individuals then constituting the said board, and provided further that
motion to adjourn may be determined by a majority vote of the members then in
attendance. Wherever In this agreement the expression "a majority vote" is
used it shall be construed and held to mean a majority vote of the individuals then
constituting the said board and in attendance, provided there be in attendance not
less than two-thirds in number of the Individuals then constituting the said board.
6. Each party agrees within ten days after rendition of any Judgment of finding
by the said board to pay unto the other party any amount In and by such Judgment
or finding found due to the other party.
7. This agreement shall be irrevocable, and the power and authority to adjudicate
and determine the said controversy shall not be affected by any failure of either
party hereto to attend hearings or to offer evidence or testimony. In the consideration or determination of the said controversy the said board shall not be
bound by any rule, law, or statute in respect of evidence or trials, and the said
board may act upon facts or things within the knowledge of any member of the
said board, and may seek knowledge of facts pertinent to the said controversy
from any source, and may hear witnesses and consider testimony or evidencetendered pursuant to invitation of the said board, or voluntarily tendered.
8. Neither any member of the said board nor the group mentioned in the preambles
hereof, nor any member of the said group, nor the said Investment Bankers Association of America, nor any member of the said Association, shall be liable to either
of the parties hereto for or on account of any judgment or finding entered pursuant hereto, or for or on account of anything said or done at any meeting of the
said board, or by reason of anything said or done in connection with any activity
of the said board or of any member thereof In intended furtherance of the purpose
of this agreement.
9. The members of the said board shall serve as such without compensation,
but each of the parties hereto agrees to pay to the Chairman of the said board
one-half of such sums as the said board shall from time to time by majority vote
find desirable in order to enable the said Chairman promptly to pay any and al/
expenses incurred by the said board for the purpose of accomplishing the Intent
hereof and particularly to pay the fees and charges of stenographers making record
of the proceedings of the said board and preparing transcripts thereof for each
member of the said board.
Each Individual herein designated a member of the said board does hereunto
subscribe his signature for the purpose of evidencing his willingness to serve upon
the said hoard.
In Witness Whereof the respective parties hereto have caused this agreement to
be executed by their respective duly authorized officers, the day and year first
herein set out.
First party.
Second party.
Signatures of members of the board:
However, this Committee unanimously agrees with Mr. Chapman that
any attempt at the formation of an exact procedure covering all cases is
Inadvisable for many reasons, some of which are legal. We, therefore,
recommend the following which we believe will cover the situation from
a practical standpoint:
(A) Cases Involving a Money Difference 01 31,000 or More.
In all disputes between members of this Association Involving a money difference
of 31,000 or more, and in the event that said dispute by mutual agreement Is submitted to any committee of this Association or any group committee for adjudication, the parties In dispute shall first sign an agreement embodying the fundamentals as set forth in the preceding agreement, but so drawn as to fit the legal
conditions of the respective States in which the contesting parties may be located.
The attention of the Board of Governors and all committees Is directed to the
fact that If a fully valid and effective agreement to submit to and abide by the
result of an arbitration is desired, counsel should be retained and the agreement and
procedure thereunder should comply with all pertinent law.
(B) Cases Involving a Monett Difference of Less than 31.000.
In all disputes between members of this Association involving a money difference of leas than $LOW, and in the event that said dispute by mutual agreement is submitted to any committee of this Association or any group committee
for adjudication,the parties In dispute shall first sign an agreement in substantially
the following form:
INVESTMENT BANKERS ASSOCIATION OF AMERICA.
Committee.
COMPANY)
1 SUBMISSION AGREEMENT.
and
COMPANY)
Believing in the principle of arbitration for the settlement of disputes and being
desirous of adjusting our present controversy amicably and Without recourse to
the courts:
(I) We, the undersigned, hereby agree to submit to arbitration the following
controversy:
(2) We do hereby agree to submit said controversy for decision to
by and per(3) It Is further agreed that we, Individually and jointly, will abide
form any award rendered by the arbitrators. Their judgment shall be final and
hereafter, to
we pledge ourselves not to carry this controversy, either now or
any court of law.
board of arbitra(4) We further agree. individually and jointly, that neither themembers, nor the
tion, nor any member thereof, nor the group of which they are
the
of
said Associamember
any
nor
America,
of
Association
Investment Bankers
Judgment or finding
tion, shall be liable to either of us for on or account of any said
or done at any
anything
of
account
on
or
for
or
thereto,
pursuant
entered
this case.
meeting of said board of arbitrators held in connection with
document, but rather a
The above is not an attempt Ito draw a legal
connection with
suggested form of a gentleman's agreement to be used in
money difference between
the settlement of minor controversies involving a
the members of this Association.
Agreement to Submit Cases.
not involve a monetary
Before filing a complaint, even though it does
in dispute first
settlement, it is recommended and urged that the parties
to the Business
agree between themselves to submit their controversy
Conduct Committee and thus avoid placing either the National Or Group
Committee in the position of having to request the defendant to present
his evidence. Such procedure will enable the Business Conduct Committee
to assume a judicial attitude rather than that of a prosecutor.
Cases Goneerning Which No Complairtt Has Been Filed.
The Business Conduct Committee may, of its own volition, and shall,
at the request of the President or Board of Governors, investigate any
matter pertaining to business conduct, even though no compiaint has been
filed. However, in all such cases the findings of this Committee shall be
confidential and shall be reported to either the President or Board of
Governors.
Complaints Against Non-Members.
Any complaint by a member of the Investment Bankers Association
against a non-member shall be made in writing direct to the Chairman
of the National Business Conduct Committee and must be accompanied by
proper evidence. However, in all such eases the complainant should bear
In mind that the Association has no jurisdiction over non-members and
may not be able to satisfactorily adjust the matter 18 dispute. Nevertheless, we have a powerful weapon in publicity and if the Business aoudad
Nov. 3 1928.]
FINANCIAL CHRONICLE
Committee, after reviewing the evidence, agrees with the complainant, it
shall use its best endeavors to find a remedy.
Disputes Between Members of the Same Group.
Any complaint by a member of a Group against another member of the
same Group shall be made in writing, accompanied by all of the evidence,
direct to the Group Chairman who will then present the case to the
Business Conduct Committee of his Group. Both parties in dispute shall
have the right to appear in person before said Committee. After reviewing
the evidence, the Business Conduct Committee shall report its findings to
the Group Chairman who in turn will advise the contesting parties of
the decision.
2481
an issue of bonds and notes which carries any misleading
inference or suggestion as to the character, lien or priority
of the issue involved." The report follows:
Your Committee has given considerable thought to the measures that
should be taken for correction of the practices which have led to the appointment of the Committee. It has been in touch with the American
Bar Association, The Trust Company Division of the American Bankers'
Association, and with a committee of the Association of Securities Commissioners appointed to do work along the same lines as this Committee. All
these organizations have exhibited their active interest and desire to cooperate to the fullest extent in a practical and constructive solution of
the problem involved.
Ds-iputes Between Members of Different Groups.
As an aid to consideration of the subject, your Committee prepared a
A complaint by a member of one Group against a member of another memorandum on bond and note titles, copies of which were made available
Group shall be made in writing, accompanied by all of the evidence, direct to members interested at the May meeting at White Sulphur Springs,
to the Chairman of the National Business Conduct Committee. He in turn West Virginia. A copy of that memorandum is attached to this report.
shall immediately forward all of the evidence in the case to the Chairman The Committee of the Securities Commissioners Association above menof the Group in which the defendant is located with the request that he tioned, with the same object, also prepared a list of titles. At a meeting
present the same to the Business Conduct Committee of his Group, who, held by that Committee in the late Rummer, a member
of this Committee
after reviewing the case shall report its findings direct to the Chairman was present and went over that list with them.
of the National Committee. Said Chairman shall then forward all of the
As a result of its activities to date, this Committee feels that the atpapers in the case to the Chairman of the Group in which the complainant tempt to prepare a list of titles to cover all cases
and procure general
is located with the request that he present the same to the Business Con- acceptance of such a list, is hardly practicable, but
that the effective
duct Committee of his Group who, after reviewing the case, shall report course will rather be continued and public insistence
by the Investment
its findings direct to the Chairman of the National Committee.
Bankers' Association upon the use of titles which fairly represent the issues
If the opinions of the Business Conduct Committees of the two Groups to which they apply.
are in accord, their decision shall be final and copies of the opinions shall
As steps in this direction the Committee recommends:
be delivered to. each of the parties in dispute. Ildwever, either the
First—The passage by the Association and publication among its members
President or Board of Governors may, for good and sufficient reasons, resolutions along
the lines of the draft submitted herewith.
Second.—The appointment of a committee of a permanent character with these
order the case retried by the National Committee. In the event that the
opinions of the two Group Committees are not in accord, the case shall functions:
(a) To advise members, upon request, as to the propriety of titles, the use of
then automatically go to the National Business Conduct Committee for which is contemplated.
review and final decision.
(b) To call to the attention of member and non-member dealers cases where titles
Each of the contesting parties shall have the right to appear in person employed by them are susceptible of criticism; and bring to the attention of the
Business Conduct Committee any particularly objectionable titles.
before both the Group and Natillnal Committees.
(c) To co-operate with such agencies of the Association of Securities
In no event shall the opinion of the Business Conduct Committee of missioners, American Bar Association and American Bankers Association,Commisas may
one Group be disclosed to the Committee of the other Group nor shall be created to consider the same problem.
(d)To create by publicity and other measures a pronounced public opinion against
either of said opinions be disclosed to the parties in dispute until the case
the use of equivocal and unfair titles.
is finally settled.
Respectfully submitted,
FRANK M. GORDON, Chairman.
Group Executive Committees to Co-operate.
RESOLUTIONS.
In the event that the Business Conduct Committee of a Group is unable
Whereas, it is the opinion of this Association that issues of bonds and
to reach a decision or to summon a quorum within a reasonable time,
the case shall automatically be referred to the Executive Committee of the notes too often bear titles which do not candidly represent the character
Group. Said Committee shall act in lieu of the Business Conduct Com- of the issues concerned; and,
mittee and after reviewing the case shall forward its decision direct to
Whereas, it is its further opinion that such a practice gives ground for
the Chairman of the National Business Conduct Committee.
just criticism and must inevitably have an injurious reaction upon the
interests of investment bankers as a whole;
Appeals.
Now, Therefore, be it resolved that this Association is and hereby de(A) Either the complainant or defendant may appeal from the decision clares itself to be
determinedly opposed to the use of any form of title
of the Business Conduct Committee of any Group to the Chairman of said for an issue of bonds or notes which
• carries any misleading inference or
Group requesting a new trial. If the appeal is granted, the Chairman suggestion as to
the
character, lien or priority of the issue involved.
shall order the caae retried by the Executive Committee whose opinion
Further Resolved, that this Association, through its officers and duly
shall be final as far as the Group is concerned.
appointed committees, take such action as may be reasonable and practicable
(B) There shall be no appeal from either the Business Conduct or to induce observance
by its members and by all others engaged in the
Executive Committees of the Group to the National Business Conduct
origination and sale of securities of the spirit of these Resolutions.
Committee.
(C) There shall be no appeal from the decision of the National Business
1. First Mortgage.
Conduct Committee. However, either the President or Board of Governors
not
There
be
any
should
question about the nature of the security
may, for good and sufficient reasons, order the case retried by the National
behind a bond bearing this title. It should be a first mortgage security.
Committee.
why
prior
reason
There is no
liens on parts of the property should not be
Reprimand, Suspension or Emptdsion.
permitted to exist, provided that in the aggregate they are not substantial,
In the event of a request by a member of the Association for the repri- say 1% of the amount of the issue. Where the mortgage is
closed, there
mand, suspension and (or) expulsion of another member, said request accom- is no reason why the obligor should not be permitted
to acquire additional
panied by all of the evidence shall be addressed to the Board of Governors property subject to conservative mortgages. If additional
bonds are isand shall be mailed to the office of the Executive Vice-President. He, in suable against acquisitions of additional property, that property should
turn, shall immediately notify the President, who, with the advice of be clear; that is, bonds should not be issuable against equities. The procounsel, will direct the hearing in accordance with the Constitution and visions for application of insurance proceeds and proceeds of
released
By-Laws. The Executive Vice-President shall also notify both the com- property should also be such as to prevent substantial change in the charplainant and defendant of the time, place and purpose of said hearing.
acter of the security.
The President may in his discretion refer the case to the Business
2. First and Refunding.
Conduct Committee with the request that they review the same and report
their findings and recommendations to the Board of Governors. Said
It is submitted that the word "first" as here used carries anly one
Committee shall have the authority not only to request evidence from the meaning to the average investor; that is that the bond
is a first lien on
plaintiff and defendant but also authority to request both of the parties some physical property. Its use cannot be defended where
it is merely
in dispute to appear in person before said Committee.
intended to indicate that the issue is a first of its kind and not a first
mortgage.
The words "and refunding" mean that it is issued for the
Conclusion.
purpose of taking up other bonds. There is a further question, on what
In closing this report the Business Conduct Committee would indeed be
value
of
property
has the buyer a right to expect that the bond will be a
remiss if it did not thank the membership as a whole for their loyal aid
first lien? Perhaps the question is plainly enough raised by the title to
and support, and, furthermore, we owe a debt of gratitude to our able
put the buyer on inquiry.
and genial President for his untiring efforts in our behalf. Conditions
have forced the Committee to take a firm stand on several important
3. First Mortgage Collateral.
matters this year, but we have endeavored not to appear in the light of a
It seems to me that this title plainly states that it is secured not by
prosecutor trying to impose our own views as to what is or is not
its own first lien, but by collateral which is a first lien.
ethically correct On the contrary, we have endeavored to assume a
judicial attitude and to persuade our membership to adhere strictly to the
4. First Mortgage and Collateral.
fundamental" of better business practice as already declared by the Board
This suggests a bond which is itself a first lien on certain property
of Governors. We look forward to 1929 with the greatest confidence.
and which is secured in part by collateral. Nothing is indicated as to
Respectfully submitted,
the extent of the property on which it is a first lien and the extent to
Geo. B. Johnson
Clarkson Potter
*C. F. Alexander
which it is secured by collateral, or the nature of the collateral.
Gustave M. Mosier
*Chas. L. Stacy
Geo. C. Applegate
•Irving F. Marshall
*Harry F. SOK
Russell D. Bell
5. Collateral Trust.
*Norman Nelson
*Dietrich Schmitz
Harry H. Bemis
Geo. H. Nusloch
This means simply that the security is collateral without pretending to
*Willis D. Wood
*Bernard W. Ford
Frank D. Nicol
Wm.H. Eddy
*Thos. 8. Gates
give any information as to the nature of it. It is an unobjectionable title
*Henry C. Olcott
Kelton E. White, Chatrman. for that reason.
*Robert E. Hunter
R. B. Porter
.1. A. W. Iglehart
6. a. First Lien.
*Unable to attend Atlantic City Convention and did not sign this report.
b. Fire Lien and Refunding (Mortgage).
[The report was unanimously accepted.]
c. First Line and General Mortgage.
The words "first lien" as used in present practice are likely to be
Report of Bond and Note Nomenclature Committee— misleading. They have been defined by text-book writers to mean the
as "first mortgage" but they have been commonly used in quite a
Association Declares Against Any Form Carrying same
different meaning. For instance, one issue examined which bore this title
Misleading Inference.
(6a) was secured by tax sales receipts, another by the deposit of stocks
and bonds of subsidiary companies; issues called by the title mentioned in
The report of the Committee on Nomenclature of Bond 61) were general mortgages additionally
secured by the deposit of some of
Investment
the
Bankers'
of
Issues
Association the underlying issues and sometimes the deposits bonds were merely
and Note
first
embodied a resolution (endorsed by the Association in adopt- and refunding mortgage bonds. The title mentioned in Sc has been defined
by text book writers to mean a first lien as to part of the property and
Association
the
which
declared
a
in
report)
itself general lien as to the remainder. Of issues
ing the
examined one
to be
"determinedly opposed to the use of any form of title for I secured by mortgage subject to prior liens and by pledge ofappeared
stocks includ.
2482
FINANCIAL CHRONICLE
tng first mortgage securities; the other by a general mortgage and deposit
of first mortgage bonds.
The above shows that the issues in which the words "first lien" are used
are likely to be far from the equivalent of a first mortgage, though that
is what the words suggest.
7. First Refunding Mortgage.
Issues have been put out bearing this title without being a first lien
on anything. This seems to me clearly indefensible. The average person
would read this to mean a first mortgage made for the purpose of refunding other bonds. He would not be interested in whether it was the first
of its kind or not.
8. First Mortgage. and Refunding. Refunding and First Mortgage.
See what is said under First and Refunding.
9. Refunding First Mortgage.
One textbook writer defined this to mean a first mortgage issued for
the purpose of refunding; another defined it as meaning an issue of bonds
of an undisclosed nature intended for the purpose of refunding first mortgage bonds. It is clearly an objectionable title because it is anybody's
guess what it means.
10. First Mortgage Collateral and Refunding.
This title would have a different meaning with a comma after the word
"mortgage" than without it. With the comma, it would mean a first
mortgage as to certain property, secured further by collateral of an undisclosed character, and issued for the purpose of refunding. Without the
comma it should mean that it is secured by collateral consisting of first
mortgage bonds, and is issued for the purpose of refunding.
11. First Mortgage and Prior Lien.
In this title it is plainly intended to indicate by the words "prior lien"
something other than first mortgage, since the words "first mortgage"
are also used. In the issue examined the security was in part a first
mortgage lien on physical assets and in part stocks and bonds issued and
to be issued by other companies. It is submitted that the words "prior
lien" have no definite meaning and should not be used.
12. First Mortgage Lien and Refunding.
In the issue examined there was no first mortgage on anything. It was
a general mortgage on physical assets and a pledge of first mortgage
bonds. In other words "first mortgage lien" was used to describe a
pledge of first mortgage bonds. This is misleading. Such a pledge should
be called "first mortgage collateral."
13. First and Unifying Mortgage.
This should be a first mortgage on a substantial amount of property.
The Issue examined appeared to be secured by a first mortgage on certain
property, a mortgage subject to prior liens on other property, and by the
deposit of first and refunding mortgage bonds.
14. First Lien and Unifying Mortgage.
See what Is said under First Lien and Consolidated Mortgage. An issue
bearing this name was examined and appeared not to be a first mortgage
on anything.
Unifying and Refunding General
15. General and Refunding Mortgage.
Mortgage and Collateral Trust Consolidated Mortgage, Refunding.
These are general warning titles with respect to which nobody could
draw any inference. They put the buyer on inquiry and seem to me rather
meaningless and, so far as indicating the rank of the bonds is concerned,
unobjectionable.
. 16. First Consolidated Mortgage. First Extension Mortgage.
No excuse for this title unless secured by a first mortgage on a substantial amount of property.
17. First Lien Collateral Trust.
If used at all should mean the same as First Mortgage Collateral Trust.
18. First Collateral Trust
No telling what this title means. It is a bad title.
19. First Mortgage and Refunding Lien.
No telling what the words "refunding lien" mean. A bad title.
20. First Lien and Consolidated Mortgage.
A meaningless title. It would not be objectionable if it were a first
mortgage on a substantial amount of property and refunded other issues
of bonds.
21. Subordinalted First Mortgage Bond.
This title has been used to describe bonds issued under a mortgage
which also secures another series of bonds, to which the series bearing this
title is subject. These bonds are not first mortgage bonds, they are second
mortgage bonds. The title is clearly objectionable, as the buyer is much
more likely to be impressed by the familiar "First" than he Is to be
warned by the unfamiliar "Subordinated."
[VOL. 127.
are received. All types of receipts given by dealers over their own
names on advance payment for securities should be called prepayment
receipts. Further, scrupulous care should be exercised to the end that
prepayment receipts are used as a matter of convenience in carrying
out the consummation of business, rather than as instruments for securing
additional capital from the public. They should be retired at the earliest
possible moment."
Following the Quebec Convention in October 1926 the President of the
Association appointed a special committee to consider the question of
interim receipts. This Committee, which has continued until the present
time, addressed the following inquiries through the media of the Regional Groups, to the main office members of the Association:
"1. Is it generally customary for you to issue against payment your own interim
receipts or certificates, pending delivery of either the temporary bonds of the company or the interim receipts advertised by the banking house of issue as deliverable
on date of payment?
"2. If this is generally your custom, will you not send to the undersigned specimens of interim receipts or certiticates which you have used? cr, possible, a snezimen of every type of form used should be sent.?
"3. If such interims are Issued by you, are they called in mmediately when
temporary bonds or the so-called official advertised interim receipts are ready for
delivery?
"4. If such receipts are issued by you, is it your general,
ustom that definite
securities belonging to you are specifically segregated and earmarked to secure each
outstanding receipt?"
In reply to these inquiries, the Committee received a large number
of the forms of Interim Receipts used by members. It also received replies as to the practice of the members in the issuance of such Receipts,
the disposition of the funds received in payment and the practice followed in the retirement of such receipts. This data clearly showed
(1) that the isstiance of Interim Receipts occurred only when such
issuance was deemed to be unavoidable; (2) that the funds received in
payment for Interim Receipts were generally earmarked, trusteed or
otherwise protected for the benefit of the Interim Receipt holder and (8)
that outstanding Interim Receipts were retired immediately upon the
temporary bond or the so-called official advertised Interim Receipt becoming available.
Your Committee feels that the above-quoted excerpt from the report
of the so-called "Code of Ethics Committee" in 1928 covers the essential phases of this matter. We suggest the continuance of an Interim Receipts Committee and that that Committee consider the advisability of
stressing a recommendation that members of the Association should not
deliver their own Interim Receipts if the so-called official temporary receipt is available.
Your Committee further recommends that the quoted excerpt from the
Code of Ethics Committee Report of February, 1926, be sent to each of
the Regional Groups, with the recommendation that it be included in any
Regional Group book/et of code of ethics or business practice, whichever
is the now-used phrase, and distributed to the members of each Regional
Group.
INTERIM RECEIPTS COMMITTEE,
Carroll J. Waddell, Chairman.
Frank M. Gordon,
Barrett Wendell, Jr.
[The report was unanimously accepted.]
Report of Committee on Constitution and By-Laws.
Among changes in the Constitution and by-laws of the
investment Bankers' Association of America adopted at the
annual meeting of the Association in Atlantic City on Oct.
16, was one which fixes the annual dues of members for
the coming year at $250. The dues for the fiscal year
1927-28 had been $250, except in the case of members whose
aggregate annual sales of investment securities were less
than $15,000,000, in which case the annual dues were $150.
Under the by-laws which are repealed members were entitled
to register three branch offices without service charge,—a
service charge of $10 being made for each additional branch
office registered. The new by-laws require each registered
branch office of members to pay annual service charges of
$25, or such other amount as the Board of Governors shall
from time to time determine. The following is the report
of the Committee on Constitution and By-Laws made to the
Board of Governors:
In accordance with the request of the Board of Governors at its May
1928 meeting at White Sulphur Springs, there has been prepared and is
submitted herewith recommendations for amendments to the constitution
22. First Trust Mortgage Gold Bowls.
and by-laws covering the questions of dues, registration of branch offices,
This title has been used to describe an issue of bonds secured by the service charges thereof and changes in the names ofseveral standing compledge of all the outstanding and practically all the stock of underlying mittees. They are presented with the recommendation that they be
companies. The title itself conveys no real information as to the character adopted by the convention.
It is proposed to repeal Section 3 of Article 2 of the constitution, which
of the security. It is an objectionable substitute for "First Mortgage
reads as follows:
Collateral."
Old Section.
"Section 3. Branch offices of members may be registered on the membership
Report of Interim Receipts Committee.
roll of the Association In accordance with the provisions of the by-laws."
In lieu of the foregoing, it is proposed to substitute the following:
Carroll J. Waddell, of Drexel & Co., Philadelphia, in his
Proposed Amendment.
report as Chairman of the Interim Receipts Committee of
"Section 3. All branch offices of members, as defined In the by-laws, shall be
the Investment Bankers' Association, stated that data re- registered on the membership roll of the Association."
It is proposed to repeal Section 1 of Article 3 of the by-laws, which reads
ceived in reply to the practice of members regarding inas follows:
terim receipts showed that the issuance of such receipts
Old Section.
occurred only when deemed to be unavoidable and that "out"Section 1. For the fiscal year 1927-1928 and thereafter, each member shall pay
annual dues of $250, provided, however, that any member whose aggregate annual
standing interim receipts were retired immediately upon the sales
of investment securities are less than $15,000,000, and who so reports to the
of $150. Each member shall be entitled to registemporary bond or the so-called official advertised interim Secretary, shall pay annual dues
ter, in accordance with these by-laws, three branch offices without service charge.
receipt becoming available." We give the report herewith: A service charge of $10 per annum shall, however, be made for each additional
On the subject of Interim Receipts, the so-called "Code of Ethics branch office so registered."
In lieu of the foregoing, it is proposed to substitute the following:
Committee" made the following comment in February, 1926, as reported in the I. B. A. of A. Bulletin No. 4, page 92:
Proposed Amendment,.
"The terms 'interims' or 'interim certificates' and 'prepayment re"Section 1. For the fiscal year 1928-1929 and thereafter, each member shall pay
annual
dues
of
$250."
ceipts' should be used with great care. Nothing should be called an in.
"Section 2. Registered branch offices of members shall each pay annual service
terim which does not contemplate the pledge of proceeds in hands of rec- charges
of $25 or of such other amount as the Board of Governors shall from time
ognized responsibility until the securities in temporary or definitive form to time determine."
Nov. 3 1928.]
FINANCIAL CHRONICLE
It is proposed to renumber Section 2 of Article 3 of the by-laws, to be
known hereafter as Section 3.
Old Seaton.
"Section 2. Annual dues and service charges shall be due and payable on September first of each year. Any member of the Association failing to pay same in full
on or before December first following shall be considered as having withdrawn from
the Association, but may be reinstated upon application to the Secretary, if such
application is approved by the Chairman of the membership committee, upon
payment of all dues or charges in arrears."
It is proposed to retain this section but to designate it as Section 3,
as
follows:
Proposed Amendment.
"Section 3. Annual dues and service charges shall be due and payable on September first of each year. Any member of the Association failing to pay same in full
on or before December first following shall be considered as having withdrawn
from the Association, but may be reinstated upon application to the Secretary,
if
such application is approved by the Chairman of the membership
committee, upon
payment of all dues or charges In arrears."
It is proposed to repeal Sections 1 and 2 of Article 4 of the by-laws,
which read as follows:
Old Seatons.
"Section 1. Branch offices of members of the Association may be registered
on
the membership roll upon written application by the member to the
provided that each such branch office sought to be registered is, in the Secretary,
opinion of
the Secretary, facilitated to carry on one or more of the principal activities
of the
Investment banking business to a material extent. The opinion and
decision of the
Secretary in each such case is subject to review by the Board of Governors."
"Section 2. Unregistered branch offices of members shall have no
official standing
or recognition in the Association. All such offices may,
receive from the
Secretary's office all issues of the 'I. B. A. of A. Bulletin.'however,
"
In lieu of the foregoing, it is proposed to substitute the following:
Proposed Amendments.
"Section 1. A branch office of a member of the Association is
defined to be any
office which is located in the United States or the Dominion of Canada
but not in
the same city wherein the main office of the member is located
owned or controlled by a member and operated principally for the and which (a) Is
purpose of buying
and (or) selling investment securities: (b) is in charge of a resident
and (c) is located in a city of 100,000 or more population.or has at representative
least three employees including such representative."
'Section 2. All such branch offices shall be registered on the
membership roll of
the Association."
It is proposed to repeal Section 1 of Article 6 of the by-laws,
which reads
as follows:
Old Seaton.
"Section 1. F.ach President, as soon as may be practicable after
election to office,
,
hall appoint the following standing committees:
Business Conduct
Government and Farm
Municipal Securities
Business Problems
Loan Bonds
Publications
Commercial Credits
Industrial Securities
Public Service Securities
Constitution & By-Laws
Legislation
Railroad Securities
Education
Investment Trusts
Real Estate Securities
Finance
Irrigation Securities
Taxation"
Foreign Securities
Membership
In lieu of the foregoing it is proposed to substitute the following:
Proposed Amendment.
"Section 1. Each President, as soon as may be practicable after
election to office
shall appoint the following standing committees:
Business Conduct
Foreign Securities
Membership
Business Problems
Government and Farm
Municipal Securities
Commercial Credits
Loan Bonds
Public Service Securities
Constitution & By-Laws
Industrial Securities
Publications
Education
Industrial Service Securities Railroad Securities
Federal Taxation
Investment Companies
Real Estate Securities
Finance
Irrigation Securities
State and Local Taxation"
Legislation
Respectfully submitted,
COMMITTEE ON CONSTITUTION AND
BY-LAWS,
By: Charles T. Sidle, Chairman.
In presenting the amendments for ratification
Charles
T. Sidlo, of Sidlo, Simons, Day & Co., Denver,
Chairman of
the Committee, said:
I presume you are all familiar with the proposed
changes. The first on
we will take up, and I will not read the present
section of the constitution
except to say that at the present time the registration
of branch houses is
purely voluntary. As you heard in the President's
address this morning,
it becomes necessary to make it compulsory that
those houses having branch
offices under the definition of what a branch house
is—the proposed amendment to the constitution is Section 3 (reading):
"Section 3. All branch offices of members, as defined
in the by-laws, shall be
registered on the membership roll of the Association."
Mr,President,I move the adoption of the amendment
to the constitution
[The motion was unanimously carried.]
Mr. Sidlo wOnt on to say—
The rest, gentlemen, are amendments to the
by-laws, changes in the by
laws. You have also heard the President, in his
address, remark about the
move to collect dues. The basis upon which we
are operating does not
produce sufficient revenue, and it has been
determined
Governors that the dues may be placed on a uniform by the Board of
basis. Therefore,
it is proposed to make this change in the by-laws (reading):
"Section 1. For the fiscal year 1928-1929 and
thereafter, each member shall
Pay
"Section 2. Registered branch offices of members
charges of $25, or of such other amount as the Board shall each pay annual service
of
Governors
shall
from
time
to time determine."
Shall I go right ahead, Mr. President?
annual dues of $250.
The President: Yes, please, if you will, with the other
proposed amendments having to do with the fiscal policy.
Mr.Sidlo: By reason of the change in Section 2 here,it
becomes necessary
to change old Section 2 to 3,it is just a reprint of the same.
With respect to the definition of branch offices—I shall not
read the whole
section, but the proposed amendment reads (reading):
"Section 1. A branch office of a member of the Association Is
defined to be any
office which is located in the United States or the Dominion of Canada,
but not in
the same city wherein the main office of the member is located,
and which (a) is
member
controlled
owned or
by a
and operated principally for the purpose
of buying
and (or) selling investment securities: (b) Is in charge of a resident
representative
and (c) is located in a city of 100,000 or more population or has at least
three
employee% including such representative.
"Section 2. All such branch offices shall be registered on the membership
roll of
the Association."
I move you, Mr. President, the adoption of the proposed
amendment.
The President: Is there any discussion? Before voting, I want
to announce for the information of the delegates, that the Board, for
the fiscal
year 1928-29, has fixed the service charges for branch offices at ten dollars,
predicated on the adoption of these amendments.
Mr. Harry E. Woil (Weil, Roth & Irving, Cincinnati): That
charge of
ten dollars, has only been established for this year?
The President: I said for the fiscal year 1928-29.
Mr. Well: Then, if the funds are not sufficient in any future year,
they
may be raised at the discretion of the Board?
The President: Within the limits of the by-laws under considerati
on, if
adopted. You are right.
2483
[The amendments were unanimously carried.]
Mr. Sidle: The next is simply a change in the committees
, the creation
of the Industrial Securities Committee, and then also the
division of what
was formerly the Taxation Committee into two
committees, one of Federal Taxation, and the other State and Local. You
see the committees
listed in the report and it is not necessary to name them.
I move the
adoption of this by-law, Mr. President:
The President: Is there any discussion?
Mr. James A. Eccles (Harris, Forbes & Co., Montreal):
I assume, as
Mr. Sidlo says, the reason for making this amendment in
the by-law is
the creation of two committees, or the splitting up of their
work, and the
changing of the name of one committee from
Investment Trust to Investment Companies.
The President: That is correct.
Mr. Eccles: And it strikes me as highly cumbersome
that we have to
come before the convention and change the by-laws in
order to adapt our
machinery to changes in our departments of our business.
It seems to
me, therefore, that we might suggest an additional amendment
to this
amendment, and I therefore offer as an amendment
the following: I
talked this over with Mr. Keyser last night, and these are his
words:
"The Board of Governors may authorize the appointment
by the President of
additional Standing committees and may
also authorize
in the titles,duties
and powers of any of the standing committees as maychanges
be in the interests of the
Association."
The President: You offer that as an amendment?
Mr. Eccles: Yes, Mr. President,
Mr.Sidlo: I will second it.
The President: The question comes up on the amended motion.
[The amended resolution and the report were unanimously
accepted.]
Report of Membership Committee.
A total membership of 690 as of August 31 1928, was
announced in the report of the Membership Committee of
the Investment Bankers' Association presented at the annual
meeting of the latter in Atlantic City Oct. 16. Henry T.
Ferriss, of the First National Company of St. Louis, as
Chairman, submitted as follows the Committee's report:
During the Association's fiscal year beginning Sept. 1 1927 and ending
Aug. 31 1928, the Membership Committee has handled 79 applications for
membership (by curious coincidence this is exactly the same
number as
during the prior year) with the following result:
Applications approved
Applications rejected
Applications pending
Total
41
3
35
79
Judging by the number of applications received there has been no
let-up
in the desire of outside houses to get into the Association and we feel that
this is continuing evidence of the good standing and reputation of our
Association in the investment banking fraternity. In fact, it
has come
to be so much a matter of course that qualified houses should be members
of the Association that the burden of proof may be said to fall upon any
non-member house to show why it has not joined. The procedure
and
requirements for admission, as provided at the Quebec convention
In 1926
and since duly followed by your Membership Committee have proven a
satisfactory and effective means of sifting the local sentiment on
new applications and providing a record upon which the Committee and the Board
can intelligently base their judgement.
During the past year there have been an unusual number of requests for
transfer of membership from a former member to a new firm or company
succeeding to the business of the former member in some one of numerous
different ways. There is nothing in the Association's Constitution or
By-Laws providing for such transfers or recognizing any property rights in
membership or any right of transfer. At the meeting of the Board
of
Governors at Seattle in 1927, this subject was discussed and the Office of
the Association (to which such requests are first presented) was instructed
to present such requests to the Membership Committee for consideration.
After two years continuous experience with this problem the present Committee feels that it would be impossible to frame any rule or by-law to cover
this matter adequately. Each situation presents a different set of facts
and it seems that the matter must be left to the good sense and discretion
of the Association's office and the Membership Committee. If they feel
unable to pass on the matter satisfactorily, any particularly difficult case
can be brought to the Board of Governors for decision or review. In
practice, the Executive Vice-President together with the Chairman
of the
Membership Committee have worked at a more or less definite
policy in
this matter which is based primarily on the theory that there is no right to
transfer membership from one house to another. Therefore, only where
the
facts presented show that there is no real change in identity or personnel
of the organization have the transfers been recognized. Thus,if a company
or partnership simply undergoes a change of name without any substantial
change in the character of the business or personnel, the Association membership has been recognized in the new name.
In many cases it has seemed quite clear that the transfer should be made
and in other cases it has seemed equally clear that it should not be made.
On the other hand there have been and will continue to be many border-line
cases where it is exceedingly difficult to determine on a paper record just
what the situation is. In these cases the assistance of the local
groups has
often been requested, or that of the local Governors, who are in a better
position to feel out the true situation. Where there is any real doubt as to
the propriety of transfer, the policy of the Membership Committee has
been to refuse the requested transfer and require the new organization to
apply for membership in the regular way.
Following is a complete list of applications for membership approved
from September 1. 1927 to August 311928: .
(We omit the list.—Editor.)
As of Aug. 31 192Is the Association had a total membership of 690. This
was a net gain of 14 members during the past fiscal year. The details of
the changes in the number and classification of members is shown in the
Auditor's report set forth as Exhibit "A" to the report of the Finance Committee. As of the same date there were 362 branch offices registered
on
the membership roll of the Association.
Your Committee acknowledges with thanks the splendid co-operation
and assistance accorded it by the Office of the Association.
Respectfully submitted.
Henry T. Ferries, Chairman Charles B. Crotgie
Wm. W. Battles
Gilbert G. Browne
Thomas B. Gannett
Membership Comm itte
2484
FINANCIAL CHRONICLE
During the reading of the Membership Committee Report,
following the second paragraph thereof, Mr. Ferriss made
the following statement:
MR. FERRISS: Let mestop there a minute to speak about this Quebec
procedure, as it is coming to be called.
The main point established at that time is what, in passing on applications for membership, the guiding principles should be if the applicant
other
should be affirmatively qualified and desirable for membership. In
words, that it should not suffice that there should simply be no objection
calling
reasons
real
be
should
to this house or that house, but that there
might
for their admission. That is to say, that is the guiding principle, one
passing on
say, since that time in guiding your Membership Committee in
[Vol,. 127.
was upright and able in the world of business, a citizen of high and active
a
ideals, a true friend, and a devoted husband and father. His death is
profound and lasting loss to this Association.
the
to
ed
transmitt
be
"Further, be it resolved that a copy of this record
wife and family of Octave Chanute and to those most closely associated
with him in his business activities."
The members were requested by the President to express
their wishes in regard to that resolution by a standing vote.
(The delegates expressed their approval of the above
resolution by rising and silently standing until the sound of
the gavel.)
The President announced: The resolution was unanimously
carried.
applications.
the
In order to answer that main inquiry the primary burden falls upon
is why it is
Local Group in which the house lives geographically, and that
should be on
required that the Executive Committee of the Local Group
number of
record as recommending the admission, and why an adequate
Election of Officers—Rollin A. Wilbur President.
supporting letters should appear in the files.
and then
Now, let me say on that point, you all recall that every now
The
following regular ticket was unanimously elected on
stating
you receive from the office of the Association a brief leaflet or page
proposed, and Oct. 19.
that a certain number of houses, naming them, have been
s come For President—
that comments are invited. It is really strange how few comment
Rollin A. Wilbur, The Herrick Company, Cleveland.
from that member.
wanted. Those For Executive Vice-President—
I would like to say here that those comments are really
Memour
of
Alden H. Little, 33 South Clark Street, Chicago.
letters get into that file and are really read by every member
lly by letters For Vice-Presidents—
bership Committee, and we are often guided very substantia
M.Gordon, First Trust & Savings Bank. Chicago.
Frank
from the members.
e yesterday mornJerome J. Hanauer. Kuhn, Loeb & Co., New York City.
To illustrate that, at this last meeting of the Committe
which
qualified,
y
Joseph L. Seybold, Wells-Dickey Co., Minneapolis.
ing, there were two applications, otherwise apparentl
there was one letter
Joseph R. Swan, Guaranty Company of New York. New York City.
were held up temporarily simply because in each case
so to speak, and
Carroll J. Waddell, Drexel & Co., Philadelphia.
in the file from a member which served as a danger signal,
r—
made us feel justified in asking for further investigation. the Committee For Treasure
helping
Robert A. Gardner, Mitchell, Hutchins & Co.. Chicago.
So we want your interest and your co-operation in
For Secretary
Pass on those applications.
Clayton G. Schray, 33 South Clark Street, Chicago.
ComAt the conclusion of the report of the Membership
For Governors:
t:
commen
g
followin
(Terms Expiring 1929)
mittee Mr. Ferriss made the
want, by any chance, the imIn addition to that formal report I don't
Albert E. Schwabacherr, Schwabacher & Co., San Francisco (To succeed
of Governors are
Board
the
or
e
Committe
the
that
ground
pression to gain
Benjamin H. Dibblee, E. H. Rollins & Sons, San Francisco, resigned)
It is essential to the healthy
not anxious to get new members. We are.
for an unexpired term ending 1929.
constant
e
reasonabl
a
have
should
Orleans
growth of our organization that we
George W. Robertson, Canal Bank and Trust Company, New
it is surprising, although it Is
, New
number of new additions to our ranks and
(to succeed John Dane, Marine Bank and Trust Company
are already in, it is
country
the
in
houses
qualified
1929.
the
ending
all
term
resigned) for an unexpired
often said that
Orleans,
of
number
l
substantia
are still a
Joseph
surprising that in every community there
Stanley L. Yonce, Northern Trust Company, Duluth (to succeed
that have not come in. And
Presihouses that we believe would be qualified,
L. Seybold, Wells-Dickey Co., Minneapolis, nominated a Viceexecutive comtheir
and
groups
local
the
of
ending
term
1929.
unexpired
we hope that the members
an
for
dent)
to feed into the National Associmittees will feel some part of their duty
qualified.
(Terms Expiring 1931)
ation all the local houses which are duly
Edward N. Jesup, Lee, Higginson & Company, New York City.
]The report was regularly adopted.]
Kelton E. White, G. H. Walker & Co.. St. Louis.
Herbert F. Boynton, F. S. Moseley & Co., Boston.
J. A. W.Iglehart, J. A. W.Iglehart & Co., Baltimore.
Los Angeles.
tion on
Thomas W. Banks. Banks, Huntley St Company,
Resolution of Investment Bankers Associa
Forbes & Company, Ltd., Montreal
Killed
Harris,
,
Denver
Eccles,
A.
of
James
e
Chanut
Octave
Death of W.
. Cincinnati.
Gustave M. Mosier, Brighton Bank & Trust Company
in Airplane Accident.
Gerald Parker Commerce Trust Company, Kansas City.
Dietrich Schmitz. Pacific National Company. Seattle.
The 17th Annual Convention of the Investment Bankers'
Denver.
Canton O'Donnell, United States National Company,
Association of America, which opened in Atlantic City,
t
N. J. on Oct. 14, was marred by an unfortunate acciden
the
on Oct. 18 to an all-metal monoplane carrying some of
bankers in a sight-seeing trip over the city. Crashing into
the
the meadows just outside the city, about 5:30 p. m.,
hours
several
death,
the
in
resulted
plane
the
to
accident
,
later, at the Atlantic City Hospital of W. Octave Chanute
&
of Denver, a member of the firm of Bosworth, Chanute d
Loughridge. Members of the Association who sustaine
injuries were:
, member of
1924-1925
Thomas M.Dysart,President of the Association in
the firm of Knight, Dysart & Gamble of St. Louis.
in 1926-1927, of the
on
Associati
Pliny Jewell of Boston. President of the
Boston firm of Coffin & Burr, Inc.
ident of the Association.
Aldene H. Little of Chicago, Executive Vice-Pres
.
Henry L. Duet*, of W. W. Lanahan & Co., Baltimore
decided
As a result of the accident the Board of Governors
for a
on Oct. 18 to cancel the remaining sessions, except
installation of
the
for
19,
Oct.
on
session
business
short
the
officers. All social affairs which had been planned for
conremaining period were abandoned, including a post
g
vention cruise from Philadelphia. On Oct. 19 the followin
d
presente
was
Chanute
Mr.
of
resolution deploring the death
follows:
by Henry T. Ferris asrequested
a few of us to attempt to prepare a
The President last night
by the Convention with regard to the
resolution for adoption at this time
necessarily been hurried in this
tragedy that has taken place. We have
e of any slight irregularities of lack of
effort and we ask your indulgenc
phrases.
polish that may appear in these
expected into our midst has brought
"The tragedy that has come all-un
ion the loss of a beloved friend, and an
organizat
our
to this convention and
principles of this Association, W. Octave
ardent supporter of the ideals and
Chanute, of Denver, Colorado.
tolerable that we should endeavor to carry on
"It is neither fitting nor
gathering assembled. Our hearts are too full for
the duties for which this
end our brief work here in respect to the memory,
us to do aught than to
for him.
love and friendship we felt
Annual Convention of the Investment
"Wherefore, this Seventeenth
America, assembled in the last of its sessions this
Bankers Association of
sorrowfully concurs in the decision of its Board
19th day of October, 1928
deliberations forthwith that it may give all proper
of Governors to cease its
Chanute. and its heartfelt sympathy for
respect to the memory of Octave
family.
his bereaved
the Investment Bankers Association of
"Further, be it resolved that
loss that has befallen it in the untimely
America, in realization of the great
Chanute while attending this convention, hero
and tragic death of Octave
its sincerest expression of sorrow.
records
t
permanen
its
upon
with places
honored and valued member of this
Octave Chanute had long been an
Governors, in its committee and
Association. As a member of its Board
effort faithfully and untiringly. He
group activities, he gave his time and
The Committees of 1928-1929 were announced as follows:
E. White, G. H.
1. Business Conduct Committee. Chairman, Kelton
Walker & Company, St. Louis.
H. Gilbert,
2. Business Problems Committee. Chairman Arthur
Spencer Trask & Company, Chicago.
F. Boynton,
3. Commercial Credits Committee. Chairman Herbert
F. S. Moseley & Co., Boston.
W.Robert4. Constitution & By-Laws Committee. Chairman, George
son, Canal Bank & Trust Co., New Orleans.
5. Education Committee. Chairman, Benjamin F. Taylor, Taylor.
Ewart & Co., Chicago.
H. Eddy, Equit6. Federal Taxation Committee. Chairman, William
able Trust Company, N. Y.0.
Trust &
7. Finance Committee. Chairman, Frank M. Gordon. First
Savings Bank, Chicago.
Addinsell,
8. Foreign Securities Committee. Chairman, Harry M.
Harris, Forbes St Company, N. Y. C.
, D. Howell
9. Government & Farm Loan Committee. Chairman
Griswold, Alex. Drown & Sons, Baltimore.
Catching!,
,
10. Industrial Securities Committee, Chairman Waddill
Goldman, Sachs & Co.. New York City.
E. Hunter,
,
11. Industrial Service Sec. Committee. Chairman Robert
Hunter, Dulin & Co. Los Angeles.
,
D. Dickey,
12. Investment Trusts Committee. Chairman Charles
Drown Bros. & Company, Philadelphia.
W.Banks, Banks Huntley
13. Irrigation Committee. Chairman, Thos.
dc Co., Los Angeles.
14. Legislation Committee. Chairman, Francis Bonner. L00. HIgging013
& Company, Chicago.
. Frank T. Nicol, Nicol, Ford
15. Membership Committee, Chairman
& Company, Detroit.
T. Ferries, First National Com16. Municipal Committee. Chairman
pany, St. Louis.
Ralph Pardon,Badrus,Fordon
17. Publications Committee. Chairman
& Company, Detroit.
Lewis B. Williams, Hayden,
18. Railroad Committee. Chairman,
Miller St Company, Cleveland.
, Sidney R. Small, Harris,
19. Real Estate Committee. Chairman
Small & Company. Detroit.
Chairman. J. A. W. Iglehart,
20. State & Local Taxation Committee.
J. A. W.Iglehart & Co., Baltimore.
Sub-Committees on Business Problems—
ge Callaway,Cal,
(A) Distribution Committee. Chairman Trowbrid
laway, Fish & Co.. New York City.
L. Roes, Wm, L. Ross
(0) Accounting Committee. Chairman, Wm.
& Company,Chicago.
. Harry Demis Curtis
Chairman
e.
(D) Trends of Business Committe
& Sanger. Boston.
to be announced
Chairman of Public Service Securities Committee
later.
Nov. 3 1928.]
FINANCIAL CHRONICLE
Walter W. Head, Former A. B. A. President, Elected
Director Industrial Finance Corp.
Walter W. Head has been elected a director of Industrial Finance Corporation. Mr. Head, who is President
of the Omaha National Bank of Omaha and of the Nebraska
Power Company, was formerly President of the American
Bankers Association. He is also a director of Chicago &
North Western Railway Co., and of the U. S. Fidelity &
Guaranty Company. His election to the Directorate of the
I. F. C. indicates a broadened interest in national activities. "I have for a long time as a stockholder been
interested in the activities of those corporations managed
by the group headed by Arthur J. Morris," said Mr. Head.
"The service which Morris Plan Ilanks have rendered the
masses throughout the country has gained added interest
through the extension of national bank facilities into this
field, patterning substantially after the methods which have
been followed by Morris Plan Banks throughout the country since their inception eighteen years ago."
Arthur S. Kleeman, Vice-President of the Manufacturers'
Trust Company, and Clinton T. Miller, formerly Assistant
Comptroller of the Guaranty Trust Company of New York,
were also elected to the Board of Directors at the same
meeting.
Alfred H. Smith Elected President of Chicago & Cook
County Bankers' Association.
Alfred H. Smith, President of the Madison & Kedzie State
Bank of Chicago, was elected President of the Chicago &
Cook County Bankers Association at its annual meeting on
Oct. 25 at the Mid-Day Club, succeeding Arthur W. Tobias,
President of Woodlawn Trust and Savings Bank. George
P. Phillip, Vice-President of•the Phillip State Bank & Trust
Company, was elected Vice-President, and C. A. Edmonds,
Vice-President of the Washington Park National Bank, has
become Treasurer of the Association. The following were
elected as directors of the association: Andrew J. Koler,
Vice-President, Drexel State Bank; Frank E. Lackowski,
Chairman of the Board, North Western Trust & Savings
Bank; A. W. Tobias, President, Woodlawn Trust and Savings Bank; Robert Anderson, President, United State Bank;
G. F. Fischer, President, Cosmopolitan State Bank; Asa
Wiersema, President, Wiersema State Bank; Fred H. Esdohr, President, Jefferson Park National Bank; Adolph S.
Helquist, President, Liberty Trust & Savings Bank; John
W. Jedlan, President, Liberty Trust & Savings Bank; William H. Rattenbury, President, Suburban Trust & Savings
Bank; H. C. Laycock, President, People's Stock Yards State
Bank; and J. D. Richards, Vice President, Boulevard Bridge
Bank.
2485
The withdrawal of £35,000 on the 12th inst. was in sovereigns for Holland.
United Kingdom imports and exports of gold during the month of
September last are detailed below:
Imports.
Exports.
Sweden
£500,848
Germany
£25,380 3,539,030
Netherlands
75,074
Belgium
15
15.786
Prance
9.961
42.206
Switzerland
141.970
Austria
111,325
Italy
132.774
Spain and Canaries
11,165
West Africa
55,821
Java and other Dutch Possessions in the Indian Seas
20.170
United States of America
500,200
Canada
500,000
Central America and West Indies
909
Various countries in South America
1,460
Rhodesia
95,424
Transvaal
3,659.175
British India
144,598
Straits Settlements
25,212
Arabia
100,000
Other countries
44,052
4,051
£3,952,196 £5,804,410
The Transvaal gold output for the month of September last amounted
to 857,731 fine ounces, as compared with 891.863 fine ounces for August
1928 and 842,118 fine ounces for September 1927.
The figures given below, showing the imports and exports of gold registered from mid-day on the 8th inst. to mid-day on the 15th inst. contain
an item of £531,963 to Switzerland. This was in the form of bar gold, and
the bulk of it was presumably the amount withdrawn from the Bank of
England in the 3d inst. against the release of £500,000 sovereigns.
Imports.
Exports.
British South Africa
£767,476 Germany
£40,923
Other countries
3,383 Netherlands
12,170
Switzerland
531,963
Prance
15,027
Austria
25,950
British India
39,843
Straits Settlements
12.576
Other countries
17.112
£770.859
£695.564
SILVER.
Prices have ruled somewhat lower during the past week, both China
and the Continent having sold with more freedom. Most of the silver
offering was acquired on behalf of the Indian Bazaars. On the 15th inst.,
due partly to an absence of buyers but mainly as a result of some fairly
heavy Continental sailing, there occurred a fall of 5-16d. in the cash and
3,4c1. in the two months' quotation, the prices being fixed at 26 9-16d.
and 26 11-16d., respectively. A renewal of Indian inquiry caused some
reaction on the following day, but America was still disposed to offer
supplies.
The premium on silver for two months' delivery has varied from 1-16d,
to Hd.
The following were the United Kingdom imports and exports of silver
registered from mid-day on the 8th inst. to mid-day on the 15th inst.:
Imports.
Exports.
Prance
£98.725 Russia (U. S. S. R.)
£45,900
United States of America
52,025 Germany
25,900
Other countries
3,755 British India
60.900
China
77,500
Other countries
11,844
£154,505
£222,044
INDIAN CURRENCY RETURNS.
Oct. 7. Sept. 30. Sept. 22.
(In Lacs of Rupees)Notes in circulation
18445
18460
18373
Silver coin and bullion in India
10674
10689
10614
Silver coin and bullion out of India
Gold coin and bullion in India
2976
2976
2976
_
Gold coin and bullion out of India
Securities (Indian Government)
4234
4234
4237
561
561
546
Securities (British Government)
The stock in Shanghai on the 13th inst. consisted of 57,000,000 ounces
in sycee, 82,800.000 dollars and 11,800 silver bars, as compared with
55,700.000 ounces in sycee, 84,700,000 dollars and 10,360 silver bars on
the 6th inst.
Quotations During the 1Veek- -Bar Silver per Oz. Std.Bar Gold
per . Fine.
Cash.2Mo5.
26 13-16d.
Oct. 11
26 15-16d. 84s. 11%cl.
26'd.
Oct. 12
26 13-16d. 84s. 1130.
Oct. 13
267d.
26 15-16d. 84s. 11%d.
Oct. 15
26 9-16d.
26 11-16d. 84s. 11 td.
Oct. 16
84s. 11 Hcl.
26 11-16d.
2614d.
Oct. 17
26 11-16d.
26 13-16d. 84s. 11;0,
Average
26.822d.
84s 11.4d.
26.7296.
The silver quotations to-day for cash and two months' delivery are
respectively Yid. and 3-16d, below those fixed a weak ago.
C. H. Wyatt Secretary and General Manager of Baltimore Clearing House Association.
Charles H. Wyatt has been appointed Secretary and General Manager of the Baltimore Clearing House Association,
succeeding William R. Webb, Assistant Vice-President of
the Baltimore Trust Co. All business of the clearing house
Is now conducted at the new building of the Baltimore
branch of the Federal Reserve Bank of Richmond, Calvert
and Lexington streets. The Baltimore "Sun" states that
all functions of the clearing house will be conducted under
the supervision of Mr. Wyatt and will be entirely independent of the Federal Reserve Bank. There will be also at- THE WEEK ON THE NEW YORK STOCK EXCHANGE.
tached to the clearing house a credit bureau which Mr.
Except for the setback on Tuesday and Wednesday during
Wyatt will conduct. He was formerly cashier of the local
which
prices generally moved swiftly downward, the stock
Federal Reserve branch.
market has shown moderate recuperative tendencies the
present week. Speculative activity centered mostly around
THE ENGLISH GOLD AND SILVFR MARKETS.
the motors, copper stocks and oil shares. The weekly stateWe reprint the following from the weekly circular of ment of the Federal Reserve Bank issued Thursday showed
Samuel Montagu & Co. of London, written under date of an increase in brokers' loans for the week ending Oct. 31
amounting to $134,871,000. Call money was fairly steady
Oct. 17 1928:
GOLD.
at
% until Friday when it dropped to 7%. After the
The Bank of England gold reserve against notes amounted to £165,- break last Friday, stock prices again turned upward on
inst.
(as
compared
with
10th
£165,727,C75 on the previous
180,455 on the
rebound carrying many issues to higher
Wednesday), and represents an increase of £11,274,140 since April 29 Saturday, the brisk
levels. Radio Corporation shot forward more than 10
1925-when an effective gold standard was resumed.
About £564,000 of the £675.000 South African bar gold available in the points to 236 and Westinghouse Electric moving up to 114.
open market this week was taken for a destination not disclosed. Of the
strong stock of the copper group
balance, India secured £20,000 and the Home and Continental trade Greene-Cananea was the
and closed at 139%, as compared with its previous final at
about £90.000.
• The following movements of gold to and from the Bank of England 135. Oil shares generally maintained their gains of the
have been announced, showing an efflux of £71,000 during the week under
previous day. Atlantic Refining was especially active and
review:
Oct. 11. Oct. 12. Oct. 13. Oct. 15. Oct. 16. Oct. 17. advanced about seven points, closing at 227. In the final
Nil
Nil
Nil
• Nil
Nil
Received
Nil
Nil
Nil
Nil £17.000 hour General Motors sold up to 221, but closed at 2207/s.
E19,000 .C35.000
Withdrawn
2486
Chrysler sold up over two points to 129, but closed somewhat lower. United States Steel common was forced below
160, but improved to 162 at the close. Montgomery Ward
continued to hold the lead in merchandising stocks and
4 at the close. Kolsold up to 344, but slipped back to 3413
ster Radio raised its top to 78% with a gain of nearly three
points and Allied Chemical & Dye closed with a net gain
of 73' points.
Buoyancy was the rule during the greater part of the session on Monday, Speculative activity continued to center
around the radio stocks, particularly Radio Corp. which
forged ahead to a new top at 2423j. Western Union raised
its top above 200, the highest peak in the history of the company. Oil shares continued in demand, the strong issues
including Sinclair, Marland, Atlantic Refining and Shell
Union. Among the railroad list advances were recorded
by Canadian Pacific, Del. & Hud., Union Pacific and St.
Louis-Southwestern. Other features of the trading were
Johns-Manville which gained about five points, Kennecott
Copper which reached its highest in all time, Cerro de Pasco
and Granby. Westinghouse Electric made another new top
and American Smelting & Refining moved ahead about four
points. Motor stocks were generally higher. Hudson
moved ahead about four points and Chrysler improved two
points.
The market reacted downward on Tuesday, though several
of the high priced speculative issues rallied toward the end
of the session and closed with moderate gains for the day.
Railroad securities were quite strong in the early trading,
Union Pacific reaching its highest top since 1909. Chesa4,as compared with its previous
peake & Ohio closed at 1893
final at 187, and Norfolk & Western improved about two
points. International Nickel was another strong feature
and moved ahead about six points to 183. American Linseed
pref. forged ahead about three points. On the other hand,
many of the market leaders that have been consistently
strong during the past week or 10 days moved down from
three to five points. The list of weak stocks included
among others such issues as Chrysler, General Motors,
Jordan, most of the copper shares, Radio Corp., Victor
Tanking Machine, Montgomery Ward, Allied Chemical
& Dye and Western Union Telegraph, the latter losing about
13 points from its previous high. On Wednesday the market
suffered a bad break and many high priced stocks, particularly specialties, were driven down to lower levels. General Motors and Chrysler both recorded substantial recessions. Copper shares were the strong stocks of the day and
fairly large advances were scored by Kennecott, Chile and
Anaconda. International Nickel moved against the trend
and after a sharp dip in the early afternoon moved ahead
seven points to 190. American Radiator gained about nine
points to a new high at 1703/s, International Harvester
forged ahead about two points. The railroad shares were
represented by advances in Texas & Pacific which gained
two points and New York & Harlem which registered an
increase of eight points.
The stock market enjoyed a brisk recovery on Thursday
with a gain of four points in General Motors to 222%.
Chrysler rallied about five points from its early low and
closed with a net gain of 2%. Mack Truck improved nearly
two points, and substanital advances were scored by Hudson, Pierce-Arrow pref. and Packard. Among the oil shares
Sinclair was in strong demand and raised its top more than
five points. The strong stocks of the copper group in()luded Kennecott, Anaconda, Calumet & Arizona and
Greene-Cananea. Railroad securities also were in strong
demand at improving prices, New Haven making a gain of
more than two points before the close and Union Pacific
bounding upward six points to 209. United States Steel
4 points to 1623. Other strong stocks
swung upward 23
included Allied Chemical & Dye which moved ahead 33'
points to 228, American Can which scored a gain of two points
to 1073., Atlantic Refining with an advance of 3Vi points
to 2233, General Electric which improved three points
to 168, Mathieson Alkali up 33/i points to 160 and Otis
Elevator which advanced three points to 234. Moderate
recessions characterized the early trading on Friday, but
prices quickly rallied and many of the more active stocks
regained their early losses and moved to higher levels, though
another selling movement later in the day again forced
prices downward. Motor shares, railroad issues and merchandising stocks were prominent in the trading, though
steel securities and oil issues also displayed material improvement in the afternoon. The strong stocks were Wool-
[Vol,. 127.
FINANCIAL CHRONICLE
worth which advanced four points to 2033', Pan-American
Petroleum "B", Internat. Tel. & Tel., Marland Oil, Columbia Gas & Electric and Amerada Corp. General Motors
sold at the highest for the present movement. Phillips
Petroleum, Utah Copper and Mid-Continent Petroleum
also were strong and worked upward to new top levels. Sinclair Consolidated attracted considerable speculative attention and reached its highest peak since 1921 when it crossed
44.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY, WEEKLY AND YEARLY
United
States
Bonds.
Stocks,
Number of
Shares.
Railroad,
vbc..
Bonds.
Slate.
Municipal ti.
Foreign Bonds.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
1.732,710
3,770,570
3.483,770
3,629,240
3,585,610
3,488,000
$2,405,000
4,664,000
4,938,000
5,744,000
6,893,000
6,124,000
$1,167.000
2,260,000
2,504,000
2,864,000
3,581,000
1,807.000
$52.000
411,000
301.000
1,236,000
889,000
951,000
Total
19 889.000
830.788.000
814.183.000
83.840.000
Week Ended Nov. 2.
Jan. 1 to Nov. 2.
Week Ended Nov. 2.
Sales at
New York Stock
Exchange.
1928.
Stocks-No,of shares.
Bonds.
Government bonds...
State and foreign bonds
Railroad & misc. bonds
1928.
1927.
1927.
19,689,000
10.540,510
695,673,1/44
471,239,772
$3,840,000
14,183,000
30,768.000
$5,029,000
14,507,500
34,920,000
$160,709,250
646,802,135
1,943,536,676
$247,955,300
703,338,200
1,823,015,400
$48 791.000 $54,456,500 $2,751,048,061 82,774,308,900
Total bonds
DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Week Ended
No,. 2 1928.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Prev. week
rnvIdarl
Baltimore.
Phitadelphfa.
Shares. Bond Sales
Shares. Bond Sates. Shares. Bond Sales.
*29,117
*69,203
*70,275
*68,452
*53,937
31,343
89.000
50,000
24,000
45,000
21,000
35,000
a40,690
a64,014
a78,816
a77,968
123,179
37,445
322,327
$184,000
422,112
242485
8184.40(1
202.072
51,332
b1,872
b3,194
b2,188
52,003
83,529
$24,500
58,000
49,600
25,200
48,000
10,500
$469,910
14,118
$215,700
8280200
la.807
8116.500
$14,100
73.700
98,100
112,100
111,910
60,000
* In addition, sales of rights were: Saturday, 245; Monday, 2,493 Tuesday,
1,360; Wednesday, 383; Thursday, 1,004.
a In addition, sales of rights were; Saturday, 1,000; Monday, 3,500; Tuesday.
4,800; Wednesday, 3,200.
S In addition sales of rights were: Saturday, 125; Monday, 114; Tuesday, 1,047;
Wednesday, 160; Thursday, 319; Friday, 231.
COURSE OF BANK CLEARINGS.
Bank clearings the present week will again show a satisfactory increase compared with a year ago. Preliminary
figures compiled by us, based upon telegraphic advices from
the chief cities of the country, indicate that for the week
ending to-day (Saturday, Nov.3) bank exchanges for all the
cities of the United States from which it is possible to obtain
weekly returns will be 11.4% larger than for the corresponding week last year. The total stands at $13,719,896,779,
against $12,310,308,676 for the same week in 1927. At this
centre there is a gain for the five days ending Friday of
17.6%. Our comparative summary for the week follows:
1928,
1927,
Per
Cent.
$7,450,000,000
672,641,118
477,000,000
472,000,000
122,443,412
130,200,000
208,878,000
174,743,000
159,690,567
193,434,735
119,716,315
80,129,631
45,748,383
$6,332,000,000
602.545,776
528,000,000
569,000,000
123,058,063
124,200,000
170,362,000
148,000,000
149,182.035
104,397,916
149,269,447
104,696,370
64,722.377
+17.6
+11.6
-9.1
-17.0
-0.6
+4.8
+22.6
+18.1
+7.1
+85.3
-19.8
-23.5
-29.3
Thirteen cities, 5 days
Other cities, 5 days
810,306,625,161
1,126,622,155
$9,169,433,984
1.175,149,290
+12.4
-4.1
Total all cities,5 days
All cities, 1 day
$11,433,247,316 $10,344,583,274
1,965,725,402
2,286,649,463
+10.5
+16.4
812 710 ROA 770 819 01n %IR 870
4-11.4
Clearings-Returns by Telegraph.
Week Ended November 3.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
'Petal all eltlan for week
Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day inasmuch as the week ends to-day
(Saturday), and the Saturday figures will not be available
until noon to-day. Accordingly, on the above the last day
of the week has in all cases had to be estimated.
In the elaborate detailed statement, however, which we
present further below, we are able to give final and complete
results for the week previous-the week ended Oct. 27. For
that week there is an increase of 21.2%, the 1928 aggregate
of clearings for the whole country being $12,462,401,277, •
against $10,285,220,289 in the same week of 1927. Outside
of this city the increase is only 8.2%. The bank exchanges
at this centre record a gain of 30.4%. We group the cities
FINANCIAL CHRONICLE
Nov. 3 1928.]
now according to the Federal Reserve districts in which they
are located and from this it appears that in the New York
Reserve District (including this city) clearings show an
improvement of 29.9% and in the Philadelphia Reserve District of 6.3%, but in the Boston Reserve District record a
loss of 1.5%. The Cleveland Reserve District has an increase of 11.6%, while the Richmond Reserve District
shows a slight decrease namely 0.5% and the Atlanta Reserve District of.5.5%. In the Chicago Reserve District the
totals are larger by 15.0%, in the St. Louis Reserve District by 4.1% and in the Minneapolis Reserve District by
3.9%. The Kansas City Reserve District registers a gain
of 8.0%, the Dallas Reserve District of 11.4% and the San
Francisco Reserve District of 17.0%.
In the followng we furnish a summary by Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
1Veek Ended October 27.
Clearings at
1928.
Inc.Or
Dec.
1926.
1925.
$
569,719,346
6,151,837,314
565,776,350
398,846,502
179,050,043
218,479,156
948,555.739
234,036,605
154,327,880
244,280,877
95,380,986
524,926,491
%
-1.5
+29.9
+6.3
+11.6
-0.5
-5.5
+15.0
+4.1
+3.9
+8.0
+11.4
+17.0
2
540,896,236
5,339,244,381
597,344.433
395,284,093
197,898,442
206,941,137
888,687.977
216,289.367
137,416,586
249,069,927
94,850,975
511,704,900
$
517,946,200
5,691,420,471
593,192,464
385,870,025
210,620,5113
269,022,012
904,792,857
233,843,728
135,377,296
232,528,983
96.866,418
529,526,008
Total
129 citlee 12,462,401,277 10,285,220,289 +21.2
Dutside N.Y.City
4,605.115.918 4,257,767,976 +8.2
0,375,628,454
4,151,368,482
9,801,006.97A
4,229,953,036
381 673 71f1
flift Mg 07!
1928.
Federal Reserve Dist*.
$
let Boston._ _ -12 cltlea
560,979,370
7,951,142,205
Bid New York_11 "
ird Philadelphia 10 "
601,661,110
ith Cleveland_ 8 "
445,011,653
Sth Richmond. 6 "
178,182.263
8th Atlanta__._13 "
206,571.551
rte Chicago _..20" 1,090,493,087
ith 85. Louis.. 8 "
243,591,199
5511 Minneapolis 7 "
160,393,050
lOth Kansas City 12 "
263.922,428
11th Dallas
5 "
106,294,780
12th San Fran...17 "
614,158,581
3anada
31 mtiss
579.130 008
424.329.183 -1-36.5
We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended October 27.
Clearings al1928.
1927.
$
First Federal Reserve Dist rict-Boston
Maine-Bangor560,973
782.818
Portland
3,364,493
3,782,532
Mass -Boston.. 496,000,000 510,000,000
Fall River
1,190,377
1,922,957
Lowell
1,060,511
1,080,629
New Bedford_
1,055,244
1,392,754
Springfield 5,534,735
5,410,676
Worcester
3,461,894
, 3,282,712
Conn.-Hartford
16,639,245
14,353,840
New Haven...
8,735,817
8,894,783
R.I.-Providence
22.703,000
18,253,600
N.H.-Manch'r.
683,081
562,046
Total(12 cities)
560,979,370
569,719,346
Second Feder al Reserve D istrict-New
N. Y.-Albany.
__
6,499,678
6,235,332
Binghamton_ _ _
1,181,187
990,200
Buffalo
58,219,648
51,153.869
Elmira
1,085,461
842,584
Jamestown__ _ _
1,677,752
1,106,751
New York__ _ _ 7,857,285,359 6,027,452,313
Rochester
13,423,372
13,691,090
Syracuse
6,170,341
5,789,374
Conn.-Stamford
4,236,886
4,206.258
N. J.-Montclair
694.699
847,730
Northern N. J.
40,687,822
40,521,813
Inc.or
Dec.
1926.
1925.
38.1
-1.9
-24.
+2.
+5.
+ 15.
-1.
+24.
+20.5
687,415
3,287,294
485,000,000
1,997,003
1.105.086
1,752,092
5.500,217
3,426,77
12,723,034
6,881,139
17,919,000
617,177
RH
652,071
3,138,915
460.000,000
2,570,361
1,319,416
2,816,140
6,184,880
3,342,816
16,627,952
6,816,899
13,820,000
656.750
-1.5
540,896,236
517,946,200
-8.3
-11.1
York
+24.1
5,905,668
6.068,981
+ 17.3
959,600
858,200
+ 13.8
49,223,313
57,059,612
+28.8
1,072,590
898,655
1,172,418
+51.6
1,328,954
+30.4 5,221.259.972 5,671,053,936
-2.0
11,162,316
,
+6.6
5.531.944
.772
+0.7
3,470,863
3,564,319
-18.1
744,360
587.108
+0.4
38.870,009
32,359,268
Total(11 cities) 7,991,142,205 6,151,837,314 +29.9
5,339,244,381 5,691.420,471
Third Federal Reserve Dist rict-Philad elphia
1,656,061
Pa.-Altoona _
1,534,046 +8.0
Bethlehem _
5,127,256
4,644,632 + 10.4
1,404,027
Chester
1,354,811 +3.6
Lancaster
1.906,786
1,866,576 +2.2
Philadelphia - _ 570.000.000 534,000,000 +6.8
Reading
3,974.633
3,797,247 +4.7
Scranton
5,416,221
6,174,387 -12.3
Wilkes-Barre_
4,388,739
3.774,447 + 16.3
York
1,834,127
1,709,597 +7,3
N.J.-Trenton..
5,953,260
6,920,607 -14.0
1,553,957
5,264,489
1,701,144
1,914,802
565,000,000
3.681,090
5.954.839
3,717,246
1,660,612
6,896,254
1,764,195
4,127,035
1,351,658
2.420.501
563,000,000
597,344,433
593,192,464
6113,000
3,448,899
70.851,000
115,228,437
14,758,800
1.817,199
5,058,642
177,378,11
5,471.000
3,026,952
72,133,000
112.580.510
14,205,300
1,905,935
5,565,710
170,981,618
398,846,502 + 11.6
395,284,093
385.870,025
Fifth Federal Reserve Dist rict-Richm ondW.Va.-Hunt'g'n
1.069,371
1,098,218 -2.6
Va.-Norfolk._ _
4.856.939
5.055,344 -3.9
Richmond
50,415,000
55,099,000 -8.5
S.C.-Charleston
2,922,601
1,789,000 -63.4
Md.-Baltimore _
91,896,023
92,757,373 -0.9
D.C.-Washinfen
27.022,329
23.251,108 +16.2
1,370,162
7,832,878
53,568,000
2,750,264
107,711,024
24,666,114
1,314,943
9,335,421
60,910,000
2,495,275
112,651,105
23,913,772
-0.5
197,898,442
210,620,516
Sixth Federal Reserve Dist rict-Atlant a8,760,154
Tenn.-Chatt'ga•
8,792,982 -0.4
Knoxville
2.557,868
2,650,407 -3.5
23,793,153
Nashville
24,823,658 -4.2
Ga.-Atlanta- - _
58,376,534
58.549.621 -0.3
2,758,484
Augusta
2,724,880 +1.2
2,878,896
Macon
*Loom() + 10.7
14,012,723
15,482,538 -9.5
1,747,000
2,704,000 -35.4
Miami
28,233,900
29,237,978 -3.4
Ala.-Birming'm
2,130,679
1,663,048 +28.1
Mobile
2,341,401
Miss.-Jackson
1,960,000 + 19.5
461,335
Vicksburg
433,600 +6.4
La.-NewOrleans
58.519,424
66,856,444 -12.5
8,164,909
2,484,891
20,603,955
54,461,654
2.219,898
2,467,992
21,532,049
5.645,000
25,115,186
1,860.887
1,389,938
487,981
60,506,797
7.410,199
2,374,086
20,724,019
79,167.719
2,477,505
1,922,089
34,576,452
24,585,441
23,685,173
1,854,416
1,349,831
496,127
68,398,955
206.941,137
269,022.012
Total(10cities)
601,681,110
565,776,350
+6.3
Fourth Feder al Reserve D istrict-Clev eland
Ohio-Akron._ _
7,304,000
6,077,000 +20.2
Canton
3,791,683
3.231.294 + 17.3
Cincinnati_
76,592,812
74,358,706 +3.0
Cleveland
137,159,255 116,699,393 + 17.5
Columbus
14,059,800
14,522.700 -3.2
Mansfield
1,852,893
1,666,766 +11.2
Youngstown_ _
6,516,746
5,675,450 +14.8
Pa.-Pittsburgh _ 197,734,464 176,615,193 + 12.0
Total(8c1ties)
Total(6 cities)-
Total(13015169)
445.011,653
178,182,263
206.571,551
179,050,043
218,479.156
-5.5
5,737,622
3,373.232
1,682,307
6,600,776
1927.
Inc.or
Dec.
1926.
1925.
$
Seventh Feder al Reserve D istrict-Chic ago-Mich.-Adrian..
205.566
228,268 -9.1
194,304
232,271
Ann Arbor....
687,636
637,835 +7.8
867,530
969,350
Detroit
243,973,707 168,476,987 +44.8 171.286,511 163,911,010
Grand Rapids_
7,838,056
6,798.290 + 15.3
7,712,281
7,327.169
Lansing
3,569,905
2,769,477 +28.9
2.784,613
2.893,371
Ind.-Ft. Wayne
2,948,081
3,272,535 -9.9
2.776,033
2,787,207
Indianapolis_ _
22,044,000
20,553,000 +7.3
17.860,000
22,403,000
South Bend - _ _
2,960.144
2,910,400 +1.7
3.085,900
2,895,716
Terre Haute...
5,008,003
5,077,193 -1.4
4,393,759
7.303.501
Wis.-Milwaukee
38,901,111
38,491,757 +1.1
35,922.554
39,170,749
Iowa-Ced. Rap_
2,593,190
2,810,000 -7.7
2,364,351
2,488,702
Des Moines_ _ _
9,387,211
10,120,727
8,760,239 +7.2
10,174,463
Sioux City _ _ _ _
6,601,337
6,702,442
5,977,241
6,879,179
Waterloo
1,230,378
1,132,754
994,168 +23.8
1,133,757
Ill -Bloomington
1,551,297
1,585,681 -1.0
1.276,486
1.483,799
728,415,145 667,260,387 +9.2 597,893,303 633,338,248
Chicago
Decatur
1,236,578
1,287,378 -3.9
1,262.612
1.200,701
Peoria
5,319.273
4.624,333 + 15.0
4.570,955
4,669,663
Rockford
3.603,187
3,149,070 + 14.4
2,598,132
3,024,627
Springfield_ _ _ _
2,419,282
2,186,299 + 10.7
2.613,367
2,470,852
Total(20 cities) 1,090,493,087
1927.
Week End. Oa, 27 1928.
2487
948,555,739 +15.0
888,687.977
904,792,857
Eighth Federa I Reserve Dis trict-St. Lo uisInd.-Evansville.
5,217,636
5,980,980 -12.7
Mo.-St. Louis_ 149.200,000 138,000,000 +8.1
Ky.-Loulsville_ _
36,923,836
35,459,041 +4.1
Owensboro_
278,536
269,624 +3.3
32,346,573
Tenn.-Memphis
34.323,943 -5.8
Ark.-Little Rock
18,022,530
18,346,835 -1.8
111.- Jacksonville
304,393
332,995 -8.4
1,297,695
Quincy
1,323,187 -1.9
6.051,814
134,200,000
29,888.328
277,958
27,689,334
16,331,679
378,145
1,472,109
5,354,781
147.400,000
29,202,435
295,822
32,491,000
17,399,851
338.833
1,361,000
+4.1
216,289,367
233,843.722
Ninth Federal Reserve Dis trict.-Minn eapolis
14,312,162
Minn.-Duluth
12,820,698 + 11.6
102,692.10
100,055,163 +2.6
Minneapolis33,782.540
33,314,273 + 1.4
St.Paul
2,228,040
No. Dak.-Fargo
1,957,831 + 13.8
1,458,965
8.03.-Aberdeen
1,504.708 -3.0
979,238
Mont.-Billings
849,207 + 15.3
4,940,000
Helena
3,826,000 +29.1
10.329.293
87,162,817
32,332,365
1,819,700
1,555,875
688,132
3,528,404
9.022,342
88.797,742
30,259,992
1,876.895
1,784,441
550,000
3.085,884
137,416.586
135.377,296
Tenth Federal Reserve DIs trict.-Kans as Cit Y.-318,943
Neb.-Fremont _
304,237 +4.8
340,570
427,205
425,151 +0.5
Hastings
435,808
3,782,072
4,275,622 -11.5
Lincoln
4.452,750
46,524,443
42.714,870 +8.9
Omaha
40,346,788
3,749,217
Kans.-Topeka
2,879,810 +30.2
2,844.769
8,332,900
7,283,463 + 14.4
Wichita
7,976.437
Mo.-Kans. City 152,341,313 139,225,447 +9.4 152,366,847
6,054,434
6,188,968 -2.2
St. Joseph
7,140,257
39,477,394
38.128,245 +3.5
Okla-Okla. City
31.860.535
1,231,455
Colo.-Col. Spgs.
1,237,872 -0.1
1,076,806
a
a
Denver
a
a
1.683.052
1,617,192 +4.1
Pueblo
1,728,360
259,014
513,304
4,284,157
40.178,525
3.071,009
7.088,603
134.706,072
6.984,751
33.329.381
1.052,223
a
1,061,944
Total(8 cities)
Total(7cities).
Total(12 cities)
243,591,199
160,393,050
263,922,428
234,036,605
154,327,880
244.280,877
+3.9
+8.0
249,069,927
232,528,983
Eleventh Fede cal Reserve District.-D alias.
1,980,094
Texas-Austin..
1,695,693 + 16.8
71,119,548
64,173,268 + 10.8
Dallas
18,681,968
15,859,110 + 17.8
Forth Worth _ _
7,873,000
8,045.000 -2.1
Galveston _
6,640,170
La -Shreveport.
5,607,615 +18.4
1,833,943
52.487,115
16.664.518
18,651.000
5.214.399
1,746.984
59,603,869
17.167.812
13.142.000
5.205,753
94,850,975
96,866,418
Franc Isco+ 13.0
43,982,745
12.649,000
+6.3
1,802,971
+9.2
+10.1
42,244.154
18.572,607
+9.8
6,736,961
-6.5
6,452,739
+33.9
+33.7 157,986.000
17,351,687
+ 15.1
5,514.727
+ 15.5
7,414,971
+ 11.0
4.972.067
+22.3
+7.8 176,708,000
3,430.441
+24.2
1,152,933
-0.2
2.074,297
-2.6
-15.0
2.658,600
43,319,767
11,952,000
2.304,873
41,005,844
18.950,102
5.274.607
5.897,204
147,109,000
19.197,751
5.331,603
8,294,754
4,421,336
206,377,000
3,480,734
1,825.244
1,825.789
2,951.400
Total(5 cities).
106,294,780
95,380.986 + 11.4
Twelfth Feder al Reserve D istrict-San
49,616,775
43,915,468
Wash -Seattle._
13,994,000
13,168,000
Spokane
2.085,999
1,911,017
Yakima
38,903,138
35,332,343
Ore -Portland..
21,295,833
19,393,313
Utah-S. L. City
5,804,016
6,207,070
Cal.-Fresno_ _
8,569,961
6.402,104
Long Beach.._
Los Angeles_ _ _ 218,279,000 163.214,000
18,003,372
15,640,389
Oakland
6,418,033
5,554.962
Pasadena
7,107,426
6,400,440
Sacramento-- 5,173,816
4,231,051
San Diego
San Francisco. 209.651,000 194,528,000
3,436,212
2,767,837
San Jose
1,719,605
1,723,374
Santa Barbara_
1,890,595
1,941,723
Santa Monica_
2.209,800
2,598.400
Stockton
Total(17 cities) 614,158,581 524,929,491 +17.0 511,704,900 529.526,008
Grand (total (129
12462,401,277 10285,220,289 +21.2 9.375,628,454 9,801,006,972
citles)
Outside NewYork 4.605,115,918 4,257.767,976
+8.2 4,154,368,442 4.229,953,036
Week Ended October 25.
Clearings at1928.
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
edlcine Hat_ _ _
Peterborough_
Sherbrooke
Kitchener
Windsor
Prince Albert- _ _
Moncton
Kingston
Chatham
Sarnia
195,068,759
184,028,510
86.403,655
22,211,895
8.444,733
6,928,212
3,675.398
6.196,333
15,152.779
3,025,902
2,727.024
3,696,986
7,537,118
8,585,473
1,246,396
927,143
3.255.477
1,794.085
1.569.426
1.361,779
927.142
689,776
1.000.120
1,062,619
1,194,935
6,634,216
581.142
936.178
1,112,557
832.405
631.435
134,614,480
128,651,216
69,484.727
18.938.053
7,239,411
6,644,225
3,002,812
6,041,660
11,026,222
2,493.849
2,537,449
2,914,473
5,546.437
5,025,213
711,179
947,297
2,155,081
1,635,555
1,285,642
966,767
571,657
446.065
895,510
873,610
1,202,158
4,853,068
372.555
879,599
898,403
713,966
760.844
Total(31 cities)
579.430.004
Inc.or
Dec.
1926.
1925.
+44.9
+43.1
+24.3
+ 17.3
+ 16.6
+4.3
+22.4
+2.6
+37.4
+21.3
+7.5
+26.8
+35.9
+70.8
+75.3
-2.1
+51.1
+9.7
+22.1
+40.9
+62.2
+64.6
+11.7
+21.6
-1.4
+36.7
+56.
+6.4
+23.8
+ 16.6
-17.0
S
106.848,931
96,383.269
76,467.0'S
16,878.G.6
5.684.875
5.666,592
2,646,326
5.629,999
8.772,891
2,122,652
2.170.187
2,736.019
4,577.497
5.761,306
644,216
630.493
2.322.478
1.724,839
1,066,339
937,259
774.409
450,246
822.948
859,929
1,140.062
4.760.940
356.123
832.755
702.305
585.577
616,876
$
104,696,221
88,947.384
68.871,194
16,624,810
5,260.087
4,514,992
2.727,965
5.862,192
7.049.206
2.641,597
3,050.850
2,498,948
4,192,049
6,358,975
651,522
476,793
2,154.666
1,359.508
848.151
748,013
624.807
192.988
724.265
705.027
924,111
3,435,396
355,281
833,191
684.886
424.329.193 +36.6
361,573.730
336,015,075
a Manager refuses to report weekly clearings.
THE CURB MARKET.
Profit-taking and a feeling of uncertainty served to depress Curb stocks this week, oil stocks in particular being
subject to pressure. There was some recovery in all departures as the week closed with all shares being the features.
Humble Oil & Refg. after an advance from 853 to 86% fell
to 83%, recovered to-day to 88M and closed at 87%. Illinois Pipe Line sold up from 225 to 264 and ends the week
at 262. Imperial Oil of Canada rose from 83 to 93 and
finished to-day at 9234. Prairie Pipe Line advanced from
2073. to 236, dropped to 208 and recovered finally to 21534.
Solar Refining was up from 194 to 205. Standard Oil
(Kentucky) improved from 152 to 157%, broke to 1513(
4. Vaccuum
and recovered to-day to 155% closing at 1553
Oil moved up from 813j to 853' and ends the week at 85%.
International Petroleum gained seven points to 51 easing
off finally to 49. In Public Utilities Elec. Bond & Share
Securities dropped from 1123. to 10834 recovered to 117
to-day and closed at 115%. Mohawk & Hudson Power
corn. sold up from 423 to 493/s and reacted to 48. Industrials were without special feature. Lehigh Coal & Nay.
4 and closed
after loss from 151k to 145 ran up to 1643
to-day at 161. National Sugar Refg. advanced from 170
to 186 and closed to-day at 185. St. Regis Paper advanced
from 92 to 125, the final figure to-day being 122%.
A complete record of Curb Market transaction for the week
wil. be found on page 2512.
DAILY TRANSACTIONS AT THE NEW YORK CURB MARKET.
BONDS (Par Value).
*STOCKS(No. Shared).
Week Ended
Nov. 2.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Indus. &
Miscell.
Foreign
Total.*
Oils.
Domestic.
$483,000
1,269,000
1,639,000
1.541,000
1,624,000
1,561,000
GOVE1711Betti.
$303,000
327,000
569,000
613,000
472,000
392.000
339,350
687.800
549,650
599,550
661.760
799,600
85,900
239,600
185,650
120.500
13,5,940
86.500
56,350 481,600
121,000 1,048,400
141,800 877,100
113,650 833,700
126,700 924,400
63,300 949,400
3,637.710
854,090
622,800 5,114.600 $8,117,000 $2,676,000
* In addition, r ghts were sold as follws: 4,Saturday, 4,200; Monday, 51.900.
Tuesday, 92,500; Wednesday, 58,200; Thursday, 7.700; Friday, 11,400.
ENGLISH FINANCIAL3VIARKET-PER CABLE.
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as_follows the past week:
Sat.,
Mon.,
Tues.,
Wed.,
Oct. 27,
Oct. 29.
Oct. 30.
Oct. 31.
26%
Silver, per oz.d. 2613-16 2611-16 26%
Gold. Per fine
84.11%
84.1134
s 84.1154
aiMce
84.1155
5534
Consols, 2548101
101
101
British. 58.--9734
9754
British, 4%s__
9734
French Rentes
65.60
64.95
64.75
On Paris)..fr.
French War L'n
93.95
93.90
93.65
(In Paris).fr.
Thurs.,
Nov. 1.
Fri.,
Nov. 2.
2634
84.1134
Silver in N.Y., per oz. (cis.):
57%
58
Foreign
58
5834
Sates
Friday
Last Week's Range for
ofPrices.
Week.
Sale
Stocks (Concluded) Par. Price. Low. High Shares.
Crown Overall pref._ ..100
Dow Drug COLIIMMI__ _100
Eagle-Picher Lead com_ _20
Early & Daniel corn
*
Egry Register "A"
*
Fenton United corn... _100
Fifth-Third-Union Tr_ _100
First National
100
Flelschmann pref
100
Formica Insulation
*
Giant Tire
Gibson Art common
*
Globe-Wernicke corn._100
Goodyear Tire 1st pref.
_100
Gruen Watch common...*
Preferred
100
Hatfield-Campbell corn..
Hobart Mfg
*
Int Print Ink
eferred
100
Jaeger Machine
Johnston Paint pref_ _100
Kahn 1st pref
100
40
Participating
Kemper-Thomas com_ _25
Kodel Elec & Mfg "A"_ _ _*
Julian Kokenge
Lunkenheimer pref.._ 100
Mead Pulp
Special pref
100
Meteor Motor
•
Nash(A)
100
Nat Recording Pump_ _ _.*
Ohio Bell Tel pref
100
Ohio Shares pref
100
Paragon Refining com_25
Procter & Gamble corn. _20
8% preferred
100
6% preferred
100
Pure Oil 6% pref
100
8% preferred
100
Rapid Electrotype
•
Richardson common._ _ 100
Rollman met
100
United Milk Crate "A"_
S Playing Card
10
S Print & Litho coin _100
Preferred
100
US Shoe common
*
Pc.for•wl
_ inn
5734
r watty
99
21
47)4
27
105
10834
33%
98%
51%
114%
36%
57
63
529
63
213
10
20
100
767
10
15
1,360
13
12
50
950
30
$19
75
18
676
228
50
325
100
30
5,114
72%
_99
100
20
3534
2854
33
•
286
111
99
6934
103
3434
734
Receipts at-
Flour.
Corn.
Wheat.
Oats.
Barley.
Rye.
bbls.196Ibsbush.60 lbs. bush. 5615s. bush. 32 lbs. ,ush.481bs. bush.561b5.
567,000
609,000
541,000
Chicago
263,000 1,231,000
712,000
Minneapolis
3,575,000
80,000
454,000
699,000
237,000
1,000
88,000 1,164,000
362,000
Duluth
6,060.000
129,000
45,000
297,000
208,000
Milwaukee...
72,000
189,000
154,000
29,000
119.000
1,000
Toledo
17,000
45,000
36,000
8,000
14,000
Detroit
356,000
Indianapolis
106,000
290,000
455,000
372,000
St. Louis_ _ -. 131,000 1,086,000
51,000
6,000
390,000
Peoria
74,000
148,000
50,000
62,000
281,000
1,392,000
Kansas City
80,000
283,000
Omaha
466,000
88,000
82,000
295,000
St. Joseph94,000
25,i i i
16,000
Wichita
350,000
82,000
Sioux City.__
32,000
94,000
5,000
528,000 14,995,000
552.000 14,027,000
506,000 9,377,000
2,726,000
7,127,000
9.574,000
2,769,000 2,818,000 1,395,000
2,827,004) 2,128,000 1,059,000
744,000
4,093.000 922,000
Total receipts of flour and grain at the seaboard ports for
the week ended Saturday, Oct. 27, follow:
58
Cincinnati StockjExchange.-Record of transactions
at Cincinnati Stock Exchange, Oct. 26 to Nov. 2, both
inclusive, compiled from official sales lists:
9254 93%
28
2835
99%
98
21
21
4754 4734
27
27
934 10%
225 225
12134 12134
25
2834
105 106
10834 10834
38% 3934
33% 34%
110 110
9854 99%
100 100
79% 80
52
51
11254 114%
36% 36%
56% 5734
35
35%
85
85
56% 64
4934
100
49
107% Oct
44% Aug
2454 Jan
93% May
35% Oct
180 f July
Apr
374
392 1.Sept
128
May
Feb
26
Mar
26
50% May
98% Jan
100% Oct
56% Feb
11634 Oct
Feb
18
7554 Oct
53% Sept
100% Oct
Oct
38
Feb
102
May
108
4354 May
Jan
59
55% Jan
36% Oct
29% Mar
Jan
82
10534 Oct
May
45
146 June
Apr
.48
115
Apr
106% Apr
Sept
20
May
31
Feb
.
200
July
113
Oct
101
115% May
75% Sept
Sept
220
Apr
103
3554 Oct
Jan
132
8354 Jan
Jan
102
9% Apr
7234 July
z92.40
Commercial aralAiliscellanzonsBays
92%
12034
24%
Jan
May
Mar
Mar
Oct
Jan
Oct
Feb
Oct
Mar
Feb
Jan
Sept
July
July
Feb
Oct
Jan
Aug
Aug
May
Sept
Jan
Oct
Oct
Oct
Sept
Feb
Mar
Sep
Jan
Apr
Aug
June
Aug
Feb
Jan
Aug
Jan
Jan
Feb
Feb
Jan
May
July
Aug
May
Feb
Feb
Ma
Breadstuffs figures brought from page 2565.-All
the statements below regarding the movement of grainreceipts, exports, visible supply, &c., are prepared by us
from figures collected by the New York Produce Exchange.
First we give the receipts at Western lake and river ports
for the week ending last Saturday and since Aug.. lifor
each of the last three years.
Receipts at-
Amer Laund Mach com _25
*
Amer Products pre(
.__25
Amer Roll Mill corn.
Amer Thermos Bot "A"...*
50
Preferred
100
Baldwin common
•
Buckeye IncuLator
Carey (Philip) corn_ _100
100
Preferred
*
Central Brass' A"
ChampCoatPap spl pf_100
Champ Fiber pref
100
*
Churngold Corp
Cincinnati Car Co
50
CNO&TPpref
100
Cin Gas& Else nref__ _ _100
C N & C Lt & Tr com_100
Preferred
100
Cln Street Ry
50
Cin & Sub Tel
50
Cm n Union Stock Yards_ 100
City Ice & Fuel
*
Coca Cola 'A"
*
Cooper Corp new pref. 100
Crosley Radio "A"
*
34
160
High.
Low.
102
34
1534
56
29
90
330
360%
120
20%
20
43
94
94
46
114%
12
44
30%
97
29
89%
100
35
49
13
29%
25%
65
101
26
100
28
109%
103
9%
249
170
96%
96%
111
3434
172
99
26
109%
64
9654
514
45
Since Aug.16,491,000244.239,000 54,986.000 55,785,00055,086.00013,402.000
1928
29,605,002
54,024.000
34.314,000
19279,473,004)222,575,000 55,875,000
_.
_ _ .
--_. _._
65.15
z Ex-Interest.
Sales
Last. 1Veek's Range for
Week.
ofPrices.
Sale
Par. Price. Low. High. Shares.
107% 107%
40
40
18% 19
77%
75
35
34
160 160
332 332
385 385
120% 12034
24% 25
20
20
49
50
9534 9534
100 100
46% 49
114% 114%
12% 12%
72% 75
49
49
99
9934
38 38
90
90
100 100
37
37
49
49
17% 20
34
3534
2854 2834
70
72
105 10554
31
31
130 134%
31% 35
112% 113
103 103
18% 18%
282 287
187 187
110% 111
99 100
113 113
69% 72%
210% 21035
100 103
34% 35%
111% 112
75
75
100% 100%
734 7%
70
67
40
19
15
45
1,246
457
280
5
2
15
20
339
300
215
10
25
335
30
194
40
30
46
20
1
5
20
80
491
1,375
140
703
20
64
14
155
49
27
49
541
5
188
200
5
35
15
429
705
175
134
10
294
21
Range Since Jan. 1.
* No par value.
Total week '28
Same wk.1927
Same wk.1926
HOLI- 10131
DAY
9735
The price of silver in New.,York on the same days has been:
Stocks-
[Vol.. 127.
FINANCIAL CHRONICLE
2488
Range Since Jan. 1.
Low.
92%
25
85
11
43
24
222
120
22%
100
100
2234
29
80%
97
97%
7951
45%
5354
3534
36%
3034
84
25
Oct
July
Aug
Feb
Jan
Aug
Sept
Jan
Aug
June
Feb
June
Jan
July
July
Aug
Feb
Oct
Jan
Aug
Aug
Apr
Mar
Oct
Feb
High.
114
2934
120
2254
49%
41
49
275
126
2854
114
109%
46
36%
121
100%
109
121
55
128
56
61
38
10554
64
June
Apr
Aug
Oct
Feb
Jan
Jan
Apr
Apr
Oct
Aug
July
Sept
Oct
May
May
June
May
Jan
May
Apr
Sept
New York.._
Philadelphia _
Baltimore._ _
Newport News
Norfolk
New Orleans *
Galveston_
Montreal _ _ _ _
Boston
Flour.
Corn.
Wheat.
Barrels. I Bushels.
470,000 2,392,000
141,000
45,000
21,000
997,000
1,000
54,000
80,000
5,000
Bushels.
23,000
2,000
10.000
622,000
'235,000
6,590,000
• 12,000
Oats.
Barley.
Rye.
Bushels.
Bushels. Bushels.
170,000 1,005,000
18,000
23,000
143,000
2,000
469,000
41,000
54,000
16,000
21,000
333,000 1,676,000
2,000
872.000
Total wk.1928 676,00(1 10,989,000
105,000
592,000 3,293,000
890,000
Since Jan.1'2820,275,000209,852,000 64,806,000 29,949,00040,742,000 16,874,000
Week 1927_ _ _
620,000 13,111,000
Since Jan.1'2718,418,000 239,937.000
168,000
383,000 4,525.000 2,012,000
8,357,000 20.534,000 14,687,000 11,905,000
* Receipts do not include grain passing through New Orleans for foreign ports
on through bills of lading.
The exports from the several eastboard ports for the week
ending Saturday, Oct. 27 1928, are shown in the annexed
statement:
Exports fromNew York
Boston
Philadelphia
Baltimore
Norfolk
Newport News
New Orleans
Galveston
Montreal
Houston
Wheat.
Corn.
Flour,
Oats.
Rye.
Bushels. Bushels, Bushels, Bushels. Bushels.
1,281,181
135,641
20,138
183,000
4,000
76,000
514,000
393,000
4.429,000
11,000
1,000
1,000
46,000
Barley.
Bushels.
349,725
20,000
57,000
266,000
41,000
1.000
13.000
11,000
77.000
19,000
741,000
135,000
582,000 1,456,000
30,000
582,000 2,313,725
May
Apr
Nov
Total week
Ramp wook 1097
6,876,181
1,000
271,641
849,138
7 729 990
47 714
951A 112A
10404102413416092.423.324
Nov. 3 1928.]
FINANCIAL CHRONICLE
National Banks.—The following information regarding
national banks is from the office of the Comptroller of the
Currency, Treasury Department:
APPLICATION TO ORGANIZE RECEIVED WITH TITLE
REQUESTED.
Capital.
First National Bank of Montezuma, Kansas
25—The
Oct.
$25,000
Correspondent, Walter Unruh, Montezuma, Kansas.
CHARTER ISSUED.
Oct. 22—The First National Bank in Wellington. Texas
$25,000
President, U. %v. Deahl, Cashier, W. Wrey.
Auction Sales.—Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week: By Adrian H. Muller & Sons, New York:
Shares. Stocks.
$ per
2489
By Wise, Hobbs & Arnold, Boston:
Shares. Stocks.
per oh. Shares. Stocks.
$ per sh.
10 Arlington Trust Co., Lawrence,
15 Hotel Trust (Touraine)
11554
Mass
•
15 Boston Maritime Corp
205
27e
25 Boston Nat. Bank
172 ex-div 100 Great Northern Paper Co.,
58-8-10 Otis Co
par $25
38%
69H
10 Esmonn Mills, pref
10134 ex-div. 250 Bennett Inc.. pref
20
35 Arlington Mills
4 units First Peoples Trust
39
5054
20 Saco Lowe Shops, 2d pref
1034 15 Shawmut Bank Invest. Trust,
100 York Mfg. Co
common
2054
37
100 Arlington Mills
3834-3934 35 Haverhill Gas Light Co., par $25 62t
20 John West Thread Co., cl. B._ _ _$2 lot 7 special units First Peoples TruSt
3
10 U. S. Worsted Co., corn., par
4 Maas. Bonding & Ins. Co
550-555
$10; 1 U.S. Worsted Corp.,com _25c.lot 20 Hood Rubber,734% pf._ _7934 ex-div.
110 Naumkeag Steam Cotton
5 units First Peoples Trust
50
Co
140-140% 5 Springfield Gas Lt. Co., v.t.c..
2 Richard Borden Mfg Co
1154
par $25
635,
135 Saco Lowell Shops. 2d pref..
104 10 Babson Dow Mfg. Co., 1st pref.:
6 Merrimack Mfg. Co., pref
2 Babson Dow NM.Co..2d pref..
774
13 Wm. Whitman Co., Inc., pref._ 934
8 Babson Dow Mfg. Co., com..25c. lot
5 Thomson Electric Welding Co.,
10 J. R. Whipple Corp., 1st pref.__ 255,
par $20
3434 500 Johnson Educator Biscuit Co.,
10 Cape Cod Steamship Co.. par $50 43
common, class B
13(
250 Carson Hill Gold Mining Co.,
15 units First Peoples Trust
50
par SI
15f 30 units First Peoples Trust
503.
12 First National Stores Inc., 1st
2 Springfield Gas Lt. Co., unde Preferred
106 & div.
posited, par 525
62
25 Malden Electric Co., par $25_.A00
10 Fairbanks Co., 1st pref
2454
132 West Boston Gas Co., v.t.c.,
50 Old Colony Trust Associates_ _ _.57
par 825
37-3734 23J, It. Whipple Corp., 1st pref.__ 2534
15 Eastern Utilities Associates
25 New England Power Assn.,ccm_ 8634
common
39 ex-div. di rights 135 Old Colony Trust Associates_ _ _58-59
444 Beacon Participations, Inc.,
Bonds.
Per Cent
pref ,class A
194 35,000 Poca.ssett Golf Club let 58,
10 Bankers Building Corp, Prof... 10
due Sept. 1936
550 lot
152 Bost m Maritime Corp
26c 81.500 Wickwire Spencer Steel Corp.
10 units U.S. Fiscal Corp
101
coll. tr. 7s, Jan.'35 (ctf. of dep.)_34-35
10 Dedham & Hyde Park G. & El.
Rights.
$ per litght.
Co., v. t. c., par $25
36
20 Ludlow Mfg. Associates
6 7-16
Sh. Shales. Stocks.
$ per Sh.
375 New Rochelle Realty Co
100
Due bill of Winthrop A. Jackson,
200 Wolff Mfg. Corp., corn, no par $30 lot
dated Dec. 1 1926, for 1.035 abs.
Various notes aggred. approx.
($25 each) Scovil. Mfg. Co. with
$24,162.06
$200 lot
dividends from Oct. 11926..$250 lot
87 The McFatrich Ld.Co.,par 550.526 lot 2 New Engl. South. Mills Co., corn.
100 Welts Co., Inc., pref. no par.$15 lot
148 20-160 Wickwire Sperm SU
25 Mex.Sun 011 Co., pref.; 37 Mex.
Co., tr. ctf. for com. stk.: 5660
Sun 011 Co., corn
$5 ot
Wickwire Spenc. Stl. Co., Cl. A 75
200 Minomar, Inc., No par.....$33 lot
due Feb. 25 1930, ctf. of dep.;
.
300 Stover Sig. Eng. Co., corn., no
$15 Wickwire Sperm.811. Co.scrip
par; 200 Stover Sig. Eng. Co..
ctf. for fractional lot, In 7% el.
•
pref. par $25
A note, due Feb. 25 1930, ctf. of
$8 lot
'330 Empire State 011 Co., Inc.
den
$141 lot
Wyoming, par $1
$75 lot 10 McLaughlin Lab., Inc. (N. Y.):
200 Tait Pap.& Color Indus., corn 20
com.5 Paramount Fuel Oil Burner
1000 West Virg. Cons. Old Co., par
Inc.,(N. Y.) corn.; 5 Paramount
;
$1
$25 lot
Fuel Oil Burner, Inc., (N. Y.):
.
Rub.
Goodyr.
Co.- pref.(N.Y.).$50 lot
32
pref. 3 Angle Un. Corp. (Del.)
23 Goodyr. Rub. Co.com.(N. Y.) $15 lot
I
Pref.: 3 Angle Un. Corp. (Del.)
39 Goodyr. Rub. Co.,pref.(Minn.)332 lot
corn., no Par; 10 Gerson Slot.
By A. J. Wright & Co., Buffalo:
5 Goodyr. Rub. Co., corn. (Minn.)57 lot
Car Corp.(N. Y.) corn, no par_$42 lot
22 Goodyr. Rub. Co., cap. stk..
Shares. Stock.
5 per sh. Shares. Stocks.
$ per sh.
(Conn.)
560 lot.
Bonds.
Per Cad. 1,000 Baldwin Gold Mines, Par 31-5254c. 242 Monument Theatre Corp
.5
63 Lambertville (N. J.) Rub. Co.,
$17,500 Wakenva Coal Co., 20-yr.
20,000 Canadian Associated Gold1.000 West Dome Lake, par $1____834c.
cap. stk
587 lot
mtge. s. f. 64s, Oct. 1 1947.
fields, Ltd., Toronto Trust re10 Triumph 011 Co
50c. lot
100 Eastland Devel. Co., Akron,
Carrying non-detach. stk. purch.
celpts
$1 lot 10 Assets Realization Co
50c. lot
Ohio. capital stock
$11 lot
warm. Feb. 1929, and subseq.
280 Aktex 011 &Gas Co., Inc., call.
coupons attached
5
stock. par $25
$20 lot
By R. L. Day & Co., Boston.
Shares. Stocks.
$ per sh.
1 Second National Bank
432
5 Webster & Atlas Nat Bank
20034
100 Merchants National Bank
435
20 United States Trust Co
425
10 Worcester Co. Nat. Bank.-164-1664
10 York Mfg. Co
1934
21 Nat. Fabric & Finish. Co.,corn- 23
10 Naumkeag Steam Cotton Co- --140%
84 Nashawena Mills
4534
5 Dartmouth Mfg. Co., corn
85;4
40 Hamilton Mtg. Co
47c
385 Holyoke St. Ry. Co
9
35 Northampton St. Ry. Co
254
21 Flintkote Co., corn
9834
6 Republic Service Corp., corn. — 15
11 Republic Service Corp., prof..- 88
2 Plymouth Cordage Co
6434
5 Amer. Glue Co., corn
3334
7 Eastern Mfg. Co., 1st pref
80
2 units First Peoples Trust
50
3 special units First Peoples Trust- 3
4 Shawmut Assn., part paid
23
5 Haverhill Elec. Light Co.. v• t. c..
par $25
87
5u
21 Saco Lowell Shops, corn
10 Saco Lowell Shops, 2nd pref- --. 1054
25 Tremont Building Trust
69
5 Howe Scale CO.. prof
44
5 Dennison Mfg. Co.. pref. 1st
series
105 & dist.
100 Chinese Amer. Invest. Corp.,
certificate of partly paid
20c
50
8 units First Peoples Trust
24
5 Saco Lowell Shops. 1st pref
50
3 units First Peoples Trust
100 American Glue Co.. corn
34
394
13 State Street Exchange
DIVIDENDS.
Dividends are grouped in two separate tables. In the
Shares. Stocks.
$ per sh.
2 Bangor Hydro Elec. Co.,6% pf.
-1024 first we bring together all the dividends
announced the
3 Bangor Hydro Elec. Co., 7% pf-119H
15 A. L. Bayles & Sons Co., pref.,
current week. Then we follow with a second table, in
par 550; 15 A. L. Bayles & Sons
which we show the dividends previously announced, but
Co., corn., par $25; 6 U. S. Worsted Corp., 1st pref; 27 U. S.
which have not yet been paid.
Worsted Corp.,com.;50-100 U.S.
Worsted Corp., corn, scrip; $18
The dividends announced this week are:
U. S. Worsted Corp., 1st pref.
scrip;5 Interborough Cons. Corp.
pref.; 2 Interborough Metropol.
Per
Books Closed
Co.,corn v t c
$8.50 lot
Name of Company.
Cent. Payable
Days Inclusire.
15 units First Peoples Trust
50-5034
1 special unit First Peoples Trust _3H-34
Railroads (Steam).
5 American Mfg. Co., pref
60
Atlantic Coast Line, prof
254 Nov. 10 Oct. 26 to Nov. 10
2.5 Fairbanks Co.. 2nd pref
554 Delaware & Hudson Co.(quar.)
8234 Dec. 20 *Holders of rec. Nov. 27
80 Heywood Wakefield Co., corn.- 204 Illinois Central,
corn.(quar.)
•1% Dec. 1 *Holders of rec. Nov. 9
250 Financial Investing Co., N.Y..
N.Y.Chicago & St. L.,corn & pf.(du.). •154 Jan. 2 *Holders of rec. Nov. 15
Ltd., par 510
26-265(
15 U. S. Envelope Co., corn
250
Public Utilities.
2 Laconia Car Co., lat pref
55
Assoc. Gas di Elec., 55 pr.(qu.)(No. 1). "51.25 Dec. 15 *Holders of rec. Nov. 15
5 U.S. Envelope Co., corn
250
Original preferred (guar.)
*8754c Jan. 1 *Holders of rec. Nov. 30
11 Haverhill Elec. Light Co., v.t.c,
$7 preferred (guar.)
551.75 Jan, 1 *Holders of rec: Nov.30
par $25
Derry Electric Co., pref.—Dividend omi tted.
89
East Kootenay Pow., pref.(quar,)
Bonds.
134 Dec. 15 Holders of rec. Nov.30
Per Cent. English
Elec. Co., Canada A
$1,000 Amer. Sugar Refining Co.
•$1.50 Jan. 15 •Holders of rec. Dec. 31
Federal Water service, Cl. A (qu.)
Dec. 1 Holders of rec. Nov. 8
6s, Jan. 1937
p50e.
$15,000 Bay Biscayne Bridge Co.10334 Hackensack Water, COM.(quar.)
*75c. Dec. 1 *Holders of rec. Nov. 14
Preferred (quar.)
1st 6548 July 1941, council Jan.
8734c Dec. 1 'Holders of rec. Nov. 14
Dec. 15 'Holders of rec. Nov. 10
1928 and sub, on. ctf. deposit...7 flat Middle West Utilities, prior lien (quar.)_ •52
$6 prior lien (quar.)
$48,000 East Bridgewater Brio,
*51.50 Dec. 15 Holders of rec. Nov. 10
Scranton-Spring Brook Water Service Co.
Co. 1st 78, June 1932, coupon
$6 preferred (guar.)
$1.50 Nov. 15 Holders of rec. Nov. 54
June 1 1925 and sub on
$5,000 lot
$5 preferred (quar.)
$1.25 Nov. 15 Holders of rec. Nov. 54
Rights.
$ per Right. Southern Cities Utilities, 7% pref
34 Nov. 10 Holders of rec. Oct. 20
25 Ludlow M'f'g Associates
654
1 Aetna Fire Insurance Co
2(134
Fire Insurance.
a—
Commonwealth (stock dividend)
se100 Subj.to stkholders meeting Nov.7
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
Per oh. Shares. Stocks.
$ Per sh.
ref
'
,
$5 lot 6 Bourse, Prof
200 Amer. Cities Co,
264
2 State Road Nat. Bank
1,068 Ozark Land & Lumber Co.,
72
Common
$5 lot 2 Nat. Bank of North Phil&
351
Co
Lumber
$15 lot 300 L. H. Gilmer Co.,common_
100 Empire
510 lot
$70 lot 300 L. H.Gilmer Co., pref
25 Stone Harbor Water Co
-$360 lot
Bonds—
200 Yaller-Montana Land & Water
$60 lot $13,500 Hinsdale Co., Colo., Townr cent.
Co., common
of Lake City, ref. 68, due Oct. 1
58 Middle West Oklahoma 011 Co.,
common
$20101
1928 to Oct. 1 1954. $500 per
year
30 President Apartment Hotel Co.
5120 lot
(Atlantic City, N.J.), oommon_520 lot $30,003r0 Idaho Irrigation Co..
Ltd..
400
1 Textile National Bank
adj. mtg. Os, due Jan. 1 1928..
26
35,000 Valler-Montana Land 580 lot
10 Hiester-Reiff Co
25
Water Co., 1st 6s, July 1 1923_55
25 Illester-Reiff Co
let
59.000 Weld Co., Colo..6s, Greeley2 Nat. Bank of Germantown, par
580
1 oudre Wig. Dist. Munie, Wa550
151
ter, past due
15 Amer. Dredging Co
1154 $10.000 San Jacinto Hotel(Houston,
89 F.H. White Co., par $8
"
lot
Texas) 1st 7s, leasehold bond of
108 Supplee Biddle Hardware Co.,
common
90
San Jacinto Hctel Co., due 1928.941, ctfs. cf deposit
333 George C. Shane Co.. common,
5550
515,000 collateral 6% note of South lot
no par; 38 George C. Shane Co.
preferred
800 lot
Jersey Realty Co., dated Oct. 30
Bank
Nat.
Overbrook
180
1915, on real & personal prop..
3
445
int. due from May 1 1917, less
5 Southwark Nat. Bank
$131.25 paid Nov. 16 1917. on
20 Drovers & Merchants Nat. Bk...165
account
10 First Nat. Bk.& Tr. Co., Wood$
19034 $679.29 promisscry note of L. J. 75
bury. N.J
Hall,dated Apr.5 1922,for .year
12 First Nat. Bk.& Tr. Co., Wood190
with int.at85
NJ
hw
6%
y.
lot
5679.30 promissory note of L. J.
3 Slanheim Trust Co., par $50..... 65
Hall, dated Apr. 5 1922. for 2
33 Segurity Title & Trust Co., par
yrs., with Int. at 6%
70
$50
320 lot
100 Bankers Trust Co., par$50..._13934 $405 promissory note of F. C.
Schultz, dated Mar. 9 1922, at
139
70 Bankers Trust Co.. par 550
Co
Trust
sight,
Ave.
450
int.
at
C.lumbla
5%
20 .
$5 lot
3495 promissory note of F. C.
5 Market dt. Title & Trust Co.
Schultz, dated Mar. 9 1922, at
651
par $50
Co.,
sight,
Trust
Title
&
with Ipt. at 5%
2 Market St.
$10 lot
651
58,000 promissory notes of H. C.
par 550
245
Stone, dated May 17 1917. pays5 Odor:dal Trust Co., par $50
hie on Sept. 2 1917, Hot. at 6%,
12 Rear Estate Trust Co., asstd. p1.300
4 notes for 52,000 each
5 Guarantee Trust & Safe Dep. Co.,
550 lot
460
53,000 Illinois Coal Corp. 1st s. f,
undePoskei
125 mortgage co. of Pa.. par 525.. 36
7s. 1943, Mt. of deposit
$85 lot
$5,000
.$4
Corp__
lot
Products
Illinois
Coal
5.
Corp.
Pulp
f,
Vacuum
181
10
78. 1943, et(. of deposit
75 Lancaster Mechanicsburg &
8110101
40
550 Central Odd Fellows Hall Assn
New Holland Ry
gen.s.f. 6s, Mar.2 1955
2634
16 Bourse, Pref
64
Correction.—In last week's issue Drovers & Merchants National Bank was reported
as sold at $115 per all, This was an error. The correct price should haoe been $165.
Miscellaneous.
Alaska Packers Assn. (quar.)
Nov. 10 *Holders of rec. Oct. 31
*2
Aldred Investment Trust, corn.(No. 1).
50e. Dec. 1 Holders of rec. Nov. 15
Amer. Loan Co., corn. class A (quar,).. 4
Nov. 1 Holders of rec. Oct. 20
Preferred ((mar.)
Nov. 1 Holders of rec. Oct. 20
2
Amer. Multigraph, coca. (quar.)
.50e. Dec. 1 *Holders of rec. Nov. 15
Common (extra)
*40e. Dec. 1 *Holders of rec. Nov. 10
Amer. Tobacco, corn & corn. B (quar.)._ 52
Dec. 1 *Holders of rec. Nov. 10
Bancitaly Corp.(quar.)
Jan. 2 *Holders of rec. Dec. 15
*51
• Stock dividend
(i) Jan. 1 *Holders of rec. Nov. 1
Beech-Nut Packing. corn. (extra)
60e. Dec. 10 Holders of ree. Nov. 24
Belding-Corticelli, Ltd., prof.(quar.)_
If( Dec. 15 Holders of rec. Nov.30
Bourne-Mills—dividend omitted.
British Type Investors A (bi-monthly)_ _
40c. Dec. 1 *Holders of rec. Nov. 15
Brooklyn-Lafayette Corp., el. A (quar.) 3714c Nov. 1 Holders of rec. Oct. 19a
Buckeye Pipe Line (quar.)
Dec. 15 Holders of rec. Nov. 16
51
Bunker Hill & Sullivan Mining &
Concentrating (monthly)
'25e. Nov. 5 'Holders of rec. Oct. 31
Extra
550c. Nov. 5 'Holders of rec. Oct. 31
Carib Syndicate (stock dividend)
(r)
'Holders of rec. Nov. 19
Carrier Engineering Corp.(quar.)
50e. Nov. 1 Holders of rec. Oct. 30
Cony. pref. (quar.)
$2 Nov. 1 Holders of rec. Oct. 30
Childs Co., common (quar.)
560c. Dec. 10 *Holders of rec. Nov. 23
Preferred (guar.)
'134 Dec. 10 *Holders of rec. Nov. 23
Coca Cola Co., corn. (quar.)
*51.50 Jan, 2 *Holders of rec. Dec. 12
Commercial Invest. Trust, corn. (qu.)... *51
Jan, 1 *Holders of rec. Dec. 5
Common (payable In common stock).. •11
Jan. 1 'Holders of rec. Dec. 5
Consolidated Mills Corp., class A
25e. Nov. 15 Holders of rec. Oct. 31
Congo'. Sand & Gravel, Ltd.. pi.(quar.) 15( Nov. 15 Holders of rec. Nov. 8
Continental Amer Bank, shares. A (qu.) *25c. Nov. 10 *Holders of rec. Oct. 31
Curtis Publishing, corn. (stk. div.)
tts 100 (z) *Holders of rec. Jan. 21
Cushman's Sons, Inc., corn. (guar.)_ _ 81
Dec. 1 Holders of roe. Nov. 15
Seven per cent preferred (quer.)
1% Dec. 1 Holders of rec. Nov. 15
Eight per cent preferred (quar.)
Dec. 1 Holders of rec. Nov. 15
2
Deere & Co.. corn,(quar.)
*51.50 Jan. 2 "Holders of rec. Dec. 15
Preferred (quar.)
'1% Dec. 1 'Holders of rec. Nov. 15
Diamond Match (quar.)
Dec. 15 'Holders of rec. Nov.30
.2
Drug Incorporated
Dec. 1 Holders of rec. Nov. 154
$1
Eitingon Schild Co.. corn.(quar.)
6214c Nov. 30 Holders of rec. Nov. 15
Federated Bus. Publications, corn. (qu.)
25c. Nov. 20 Holders of rec. Nov. 5
Second preferred
3
Nov. 15 Holders of rec. Nov. 1
Flintkote Co.(stock dividend)
.1100 Nov. 24 "Holders of rec. Nov. 17
Foshay(W B)& Co.. com
16 2-3e Nov. 10 'Holders of rec. Oct. 31
*50e. Nov. 10 *Holders of roe. Oct. 31
$6 P-eferred (monthly)
• 162-3c Nov. 10 *Holders of rec. Oct. 31
$6 preferred (extra)
Gen. Outdoor Advertising, cl. A.(quar.) *51
Nov. 15 "Holders of rec. Nov. 5
•13,i Nov. 15 *Holders of rec.
Preferred (quar.)
Nov. 5
Gorham Mfg.. 1st pref. (quar.)
1% Dec. 1 Holders of rec. Nov. 15
Greenway Corp., prof
75c. Nov. 15 Holders of rec. Nov. 1
Hale Bros. Stores (quar.)
*50e. Dec. 1 *Holders of rec. Nov. 15
Horn de Harden Co.(N. Y.), pref.(qu.) *1% Dec. 1
Illinois Pipe Line
*$10 Dec. 15 *Holders of rec. Nov. 12
2490
Name of Company.
Per
When
Cent. Payable.
Books Closed
Days Inclusive.
Miscellaneous (Concluded).
Indiana Limestone Co., pref. (quar.)--- 1% Dec. 1 Holders of rec. Nov. 20
Ingersoll-Rand Co., common (quar.)--- *75c. Dec. 1 *Holders of rec. Nov. 12
*51 Dec. 1 *Holders of rec. Nov. 12
Common (extra)
*62Sic Dec. 1 *Holders of rec. Nov. 15
Inland Steel, common (quar.)
114 Dec. 1 Holders of rec. Nov. 15a
International Silver, common (guar.)._ Interstate Iron & Steel, pref. (quar.)_ _ _ 41.11 Dec. 1 *Holders of rec. Nov.20
*e5C1c. Nov. 5 *Holders of rec. Nov. 1
Kalamazoo Stove (stock div.)
Kroger Grocery & Baking,0.m.(quar.)- *25e. Dee. 1 *Holders of rec. Nov. 10
75e. Nov. 1 Holders of rec. Oct. 31
Laclede-Christy Clay Prod., corn.(qu.)_
*3714c Nov. 1 *Holders of rec. Oct. 25
Larrowe Milling,common (quar.)
Dec. 1 Holders of rec. Nov. 15
Liggett & MyersTo b.,com.& cum.B(qu.) $1
87Sic. Nov. 1 Holders of rec. Oct. 25
Marathon Shoe, common (guar.)
25e. Nov. 1 Holders of rec. Oct. 25
Extra
*31 Dec. 1 *Holders of rec. Nov. 15
May Department Stores (quar.)
1% Dec. 1 Holders of rec. Nov. 15
Mengel Co. pref. (quar.)
Dec. 1 Holders of rec. Oct. 29
$3
Merrimack'
Mfg., com. (quar.)
Dec. 10 Holders of rec. Nov.20
2
New Jersey Zinc (extra)
50e. Nov. 15 Holders of rec. Nov. 1
Nineteen Hundred Washer, cl. A (qu.)_ Ohio Seamless Tube, common (quar.)-- 51.50 Nov. 15 Nov. 1 to Nov. 15
Parker Rust Proof Co., pref. (guar.) _ *3714c Nov.20 *Holders of rec. Nov. 10
*31 Nov.20 *Holders of rec. Nov. 10
Preferred (extra)
75c. Dec. I Holders of rec. Nov. 20a
Phillips-Jones Corp., common (quar.)-Pickwick Corp., pref.(guar.)
*17 15c Nov. 25 *Holders of rec. Nov. 15
*50c Dec. 1 *Holders of rec. Nov. 19
Propper Silk Hosiery Mills (quar.)
*250. Dec. 1 *Holders of rec. Nov. 10
Pure Oil, common (quar.)
*75c. Dec. 1 *Holders of rec Nov. 15
Purity Bakeries, corn.(quar.)
(n) Holders of dividend warrants
Rims Steel Corp
Savage Arms, new common (quar.)_ _ 4100. Dec. 1 *Holders of rec. Nov. 15
*1% Jan. 2 *Holders of rec. Dec. 15
First preferred (quar.)
*114 Feb. 15 *Holders of rec. Feb. 1
Second preferred (quar.)
30e. Nov. 15 Holders of rec. Nov. 1
Smith (A.0.) Corp., cons.(quar.)
111 Nov. 15 Holders of rec. Nov. 1
Preferred (.111111%)
Smith (Howard) Paper Mills, W.(qu.)-Nov. 30 Holders of rec. Nov. 20
Spalding(A. G.)&Bros.,corn.(quar.)... $1.50 Jan. 15 Holders of rec. Jan. 5
1% Dec. 1 Holders of rec. Nov. 17
First preferred (quar.)
Dec. 1 Holders of rec. Nov. 17
2
Second preferred (guar.)
Squibb(E.R.)Co., let p1.(au.)(No. 1) *31.50 Nov. 1 *Holders of rec. Oct. 25
*40c. Dec. 15 *Holders of rec. Nov. 16
Standard Oil of N.Y.(guar.)
Standard Paving, Ltd.(quar.)
•37)4c Nov. 15 *Holders of rec. Oct. 31
Extra
*3714c Nov. 15 *Holders of rec. Oct. 31
Standard Royalties Wewoka Corp.
Nov. 15 Holders of rec. Oct. 31
1
Preferred (monthly)
*$1.25 Dec. 1 *Holders of rec. Nov. 10
Studebaker Corp., com.(quar.)
1% Dec. 1 *Holders of rec. Nov. 10
Preferred (quar.)
*25c Dec. 15 *Holders of rec. Nov. 26
Sun Oil Co., cons. (quar.)
(m) Dec. 15 *Holders of rec. Nov. 26
Common (stock dividend)
Nov. 9 Holders of rec. Nov. 1
$1
Superheater Co.(quar.)
90c Nov. 15 Holders of rec. Nov. 5
Thatcher Mfg., cony. pref. (quar.)
.e100 Nov. 1 *Holders of rec. Oct. 26
Triplex Safety Glass (stk. div.)
*400 Nov. 9 *Holders of rec. Oct. 30
United Eng. Be Fdy., corn. (quar.)
*200 Nov. 9 *Holders of rec. Oct. 30
C ‘-e-non (extra)
*1% Nov. 9 *Holders of rec. Oct. 30
Preferred (quar.)
Dec. 1 *Holders of rec. Nov. 16
U. S. roairy Products, com. A (quar.) *El
*1% Dec. 1 *Holders of rec. Nov. 16
First preferred (quar.)
Dec. 1 *Holders of rec. Nov. 16
*2
Second preferred (quar.)
Jan. 1 *Holders of rec. Dec. 21
411
U. S. Playing Card, com.(quar.)
Jan. 1 *Holders of rec. Dec. 21
411
Common (extra)
1% Dec. 29 Holders of rec. Nov. 30
U.S. Steel Corp.. com.(guar.)
111 Nov. 28 Holders of rec. Nov. 3
Preferred (quar.)
*63 c .Nov. 1 5*Holders of rec. Oct 31
Veeder Root Co. (guar.)
114 Dec. 1 Holders of rec. Nov. 15
White (J. G.)& Co., Inc., pref.(qu.)--White(.1.0.) Eng.Corp., pref.(guar.)-- 11( Dec. 1 Holders of rec. Nov. 15
*25c Dee. 31 *Holders of rec. Dec. 12
White Motor (quar.)
White Motor Securities, pref. (quar.)-- *111 Dec. 31 *Holders of rec. Dec. 12
Winter(Benjamin), Inc.. pref.(quar.)..- 51.25 Nov. 15 Holders of rec. Nov. 5
Zenith Radio Corp. (stock dividend)._ _ *e300 Nov. 18 *Holders of rec. Nov. 13
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced:this week, these being given in the preceding table.
Name of Company.
When
Per
Cent. Payable.
Books Closed
Days Inclusive.
Railroads (Steam).
AWL. Topeka & Santa Fe. com. guar.) 23-4 Dec. 1 Holders of rec. Oct. 26a
114 Dec. 1 Holders of rec. Oct. 20o
Baltimore & Ohio, com. (quar.)
Dec. 1 Holders of rec. Oct. 200
1
Preferred(guar.)
87e. Jan. 1 Holders of rec. Nov. 300
Bangor & Aroostook, com. (quar.)
Jan.
1 Holders of rec. Nov. 30a
1%
Preierred (quar.)
Boston & Providence (guar.)
23( Jan. 1 Holders of rec. Dec. 20
Nov. 15 Holders of rec. Nov. 5a
2
Central RR. of N. J. (quar.)
33.4 Jan l'29 Holders of rec. Dec. 8a
Chesapeake & Ohio pref. series A
a Febl'29 Holders of -ec Jan 15'29
Cuba RR preferred.
215 Nov. 28 Holders of rec. Nov. 14
Georgia Sou & Fla, let & 2d pref
13.4 Dec. 1 Holders of rec. Nov. 16a
Hudson & Manhattan. common
Internat. Rys. of Cent. Am., pref. 'qu.) 13-4 Nov. 15 Holders of rec. Oct. 31a
Jan. 2 Holders of rec. Dec. 15a
1
Maine Central. core. (quar.)
1;4 Dec. 1 Holders of rec. Nov. 15
Preferred (quar.)
Dec. 1 Holders of rec. Nov. I5a
1%
(quar.)_
Mexico
Texas
&
New Orleans
Dec. 19 Holders of rec. Nov. 300
2
Norfolk & Western, corn.(quar.)
Dec. 19 Holders of rec. Nov. 30a
2
Common (extra)
Nov.19 Holders of ree. Oct. 3Ia
1
Adjustment Preferred (qtlar.)
8734c Nov. 30 Holders of rec. Nov. la
Pennsylvania RR.(guar.)
Nov. 8 Holders of rec. Oct. 10a
$1
Reading Co.. common (quar.)
59e. Dec. 13 Holders of rec. Nov. 220
lot preferred (quar.)
154 Feb1'29 Hold of rec. Jan. 7 '29a
St. Louis-San Francisco 6% pref. (qtr.)1% Nov.24 Holders of rec. Oct. 250
Wabash. pref. (quar.)
Public Utilities.
Allied Power & Light, $5 1st pref.(quar.)
$3 preference (quar.)
Amer. Gas & Power. 1st pref.(guar.).
$6 preference (quar.)
Amer. Water Works & Elea., corn. 011.)
Associated Gas & Elec. $6 pref.(quar.).
$1314 preferred (quar.)
Associated Telep. Utilities. $7 pref.(qtr.)
$6 Preferred (quar.)
Brazilian Tr. L. & P. ord.(guar.).Brooklyn Edson Co. ?guar.)
Bklyn-Manhattan Tr., pref. A (quar.)
Preferred series A (quar.)
Cent. & S'west UHL, pr. lien pref.(qu.).
$7 preferred (quar.)
Chicago Rapid Transit (monthly)
Prior pref series B (monthly)
Columbia Gas & Elec., corn.(quar.)--Six per cent prof.. series A (guar.).-- Connecticut Ry. tfr Ltg., com.& pf.(qu.)
Consolidated Gas(N. Y.), corn. (quar.)_
Consumers Power Co.,$5 pref.(quar.)..,
6% Preferred (quar.)
6.6% preferred (quar.)
7% preferred (quar.)
6% preferred (monthly)
6% preferred (monthly)_
6.6% preferred (monthly)
6.6% preferred (monthly)
Eastern Utilities Associates, com.(qu.).
Engineers Public Sem.. com.(qu.)(5/0.1)
$5 Preferred (quar.)
Foreign Power Securities.6% prof.(qu.)
Havana Electric & Utilities. 1st pf.(aL)
Cumulative Preference (quar.)
Havana Electric Hy., pref. (quar.)
[VOL. 127.
FINANCIAL CHRONICLE
$1.25 Nov. 15 Holders of rec. Nov. 2
75c. Nov. 15 Holders of rec. Nov. 2
$1.50 Nov. 15 Holders of rec. Nov. 1
$1.50 Nov. 15 Holders of rec. Nov. 1
250. Nov. 15 Holders of rec. Nov. la
/51.50 Dec. 1 Holders of rec. Oct. 31
$1.625 Dec. 1 Holders of rec. Oct. 31
$1.75 Dec. 15 Holders of rec. Nov. 30
$1.50 Dec. 15 Holders of rec. Nov. 30
440. Dec. 1 Holders of me. Oct. 31
Dec. 1 Holders of rec. Nov. 80
2
$1.56 Ian15.29 Holders of rec. Dec. 31a
$1.50 Ap1529 Holders of rec. Apr. 1 '29a
$1.75 Nov. 15 Holders of rec. Oct. 31
$1.75 Nov. 15 Holders of rec. Oct. 31
*65c. Dec. I *Holders of rec. Nov. 20
*60c. Dec. 1 *Holders of rec. Nov. 20
$1.25 Nov. 15 Holders of rec. Oct. 20s
114 Nov. 15 Holders of rec. Oct. 20*
111 Nov. 15 Nov. 1 to Nov. 15
75c. Dec. 15 Holders of rec. Nov. 8a
$1.25 Jan. 2 Holders of rec. Dec. 15
Jan. 2 Holders of rec. Dec. 15
$1.65 Jan. 2 Holders of rec. Dec. 15
181 Jan. 2 Holders of rec. Dec. 15
50e. Dec. 1 Holders of rec. Nov. 15
50c. Jan. 2 Holders of roe. Dec. 15
55c. Dec. 1 Holders of rec. Nov. 15
55e. Jan. 2 Holders of rec. Dec. 15
50c. Nov. 15 Holders of rec. Oct. 26a
25c. Jan 2'29 Holders of ree Nov. 29a
$1.25 Jan 2'29 Holders of rec. Nov. 294
114 Nov. 15 Holders of rec. Oct. 31
$1.50 Nov. 15 Holders of rec. Oct. 20
$1.25 Nov. 15 Holders of roe. Oct. 20
Ca
13-4 Dee 1 iw &re,: 4 re-
Name of Company.
Per
When
Cent. Payable.
Books Closed
Days Inclusive.
Public Utilities (Concluded).
International Power Securities (No. 1).... 411 Dec. 15 *Holders of rec. Dec. 1
KentuckyUtilities Co.. Junior pref.(cm.) 4111 Nov. 20 *Holders of rec. Nov. 1
Los Angeles Gas & Elec., pref. (guar.).- '134 Nov. 15 *Holders of rec. Oct. 30
Dec. 1 Nov. 16 to Nov. 30
Massachusetts Gas Cos., pref
2
Middle West Utilities. core. (quar.),,._ $1.75 Nov.15 Holders of rec. Oct. 31
National Power & Light, common (qu.)
25e. Dec. 1 Holders of rec. Nov. 12a
North American Edison. prof.(pure.).
$1.50 Dec. 1 Holders of rec. Nov. 15a
Northwest Utilities. pref. (quar.)
$1.75 Nov. 15 Holders of roe. Oct. 31
Ohio Edison Co..6% Prof.(quar.)
134 Dec.. 1 Holders of rec. Nov. 15
1.65 Dec. 1 Holders of rec. Nov. 15
6.6% preferred (guar.)
7%
5% p
prof.
.(qeuar.)
134 Dec. 1 Holders of rec. Nov. 15
(quar.)
111 Dee. 1 Holders of rec. Nov. 15
6% preferred (monthly)
50e. Dec. 1 Holders of rec. Nov. 15
6.6% preferred (monthly)
550. Dec. 1 Holders of rec Nov. 15
Pacific Gas & Elec., lot pref.(quar.)
*3714c Nov. 15 *Holders of rec. Oct. 31
Pacific Lighting, com.(guar.)
75e. Nov. 15 Holders of rec. Oct. 31a
$5 preferred (guar.)
•$1.25 Nov. 15 *Holders of ree. Oct. 31
Penn-Ohio Edison 7% prior pref. (qu.)_
1% Dec. 1 Holders of rec. Nov. 20
Philadelphia Electric (quar.)
50e. Dec. 15 Holders of rec. Nov. 300
Phila. Suburban Water, pref.(quar.)
114 Dec. I Holders of rec. Nov. 10a
114 Mr.V29 Hold, of rec. Feb. 9 '29a
Preferred (quar.)
Pub.Serv.Corp of NJ 6% pf (mthly) 50c Nov 30 Holders of roc Nov 20
Radio Corp of Am. pref. A (quay.).
134 Jan. 1 Holders of rec. Dec. la
Southern Calif. Edson. com.(quar.)
50o. Nov. 15 Holders of rec. Ott. 20*
3754c Dec. 15 Holders of rec. Nov. 20
6% prof. Omar.)
431.1c Dec. 15 Holders of rec. Nov. 20
7% pref. (quar.)
Southern Canada Power, corn. (qu.)
Nov. 15 Holders of rec. Oct. 31
$1
Southern Colo. Power,corn. A (qu.)_
50e. Nov. 24 Holders of rec. Oct. 31
so'west Gas UHL.Prof.(qu.)
1.6234 Febl'29 Hold. of rec. Jan. 20'29
Preferred (quar.)
1.6254 M'yl'29 Hold.of rec. Apr.20'29
Tampa Electric Co., corn.(guar.)
500. Nov. 15 Holders of rec. Oct. 25a
Tennessee Elec. Power,5% 1st pfd (qu.) 134 Jan. 2 Holders of rec. Dec. 15
13.1 Jan. 2 Holders of rec. Dec. 15
Six per cent first preferred (quar.)_ _ Seven per cent first pref. (quar.)
154 Jan. 2 Holders of rec. Dec. 15
$1.80 Jan. 2 Holders of rec. Dec. 15
7.2% first preferred (quar.)
50e. Dec. 1 Holders of rec. Nov. 15
Six per cent first preferred (monthly).
Six per cent first preferred (monthly)_
50e. Jan 2'29 Holders of rec. Dec. 15
60c. Dec. 1 Holders of rec. Nov. 15
7.2% first preferred (monthly)
enc. Jun 2'29 Holders of rec. Dec. 15
7.2% first preferred (monthly)
50e. Jan9'29
United Gas 'met. (extra)
United Lt.& Pr.. com. A & B,old (qu.)
*60e Nov. 15 *Holders of rec. Oct. 15
•12c Nov. 15 *Holders of rec. Oct. 15
New common, A & B (quay)
West Penn Elec. Co 7% pref. (qu.).....
134 Nov 15 Holders of rec. Oct. 20a
134 Nov. 15 Holders of rec. Oct. 200
Six per cent pref. (quar.)
Wisconsin Power e,Light, prof.(quar.)- - •1 I% Dec. 15 *Holders of rec. Nov. 30
Fire Insurance.
American Re-Insurance (quar.)
•75c. Nov. 15 *Holders of rec. Nov. 1
Bankers 'Sc Shippers (quar.)
$4.50 Nov. 9 Holders of roe. Nov. 5
cleneral Re-insurance Corp. (quar.)---. $1.25 Nov. 15 Holders of rec. Oct. 31
*e100 Subject to stkhldrs meet'g Nov. 12
Globe & Rutgers Fire (in stock)
Hanover Fire (payable in stock)
el0
Holders of rec. Oct. 31
Pacific Fire
Nov. 7 Holders of rec. Nov. 2
$1
Dec. 15 *Holders of rec. Dec. 9
*6
North River (guar.)
Miscellaneous.
50c. Dee. 1 Holders of rec. Nov. 15
Aldred Investment Trust corn.(No. 1) Allis-Chalmers Mfg., corn. (quay.)..... $1.75 Nov. 16 Holders of rec. Oct. 240
50o. Dec. 31 Holders of rec Dec. 15
A iuminum Manufactures. cons. (quar.)
Preferred (quar.)
111 Dee. 31 Holders of roe Dee. 15,1
50c. Nov. 15 Holders of rec. Oct. 310
American Can. corn. ((mar.)
Amer. Chatillon Corp.. pf.(qu.)
*51.75 Feb 1'29 *Holders of rec. Jan. 20
*31.75 May1'2 *Holders of rec. Apr. 20
Preferred (quar.)
American Chicle, new corn.(au.)(No.1)
50e. Jan. 1 Holders of rec. Dot. 120
Corn.(payable in corn.stock)
0100 Nov. 7 Holders of rec. Oct. 290
American Chicle, prior pref. (guar.)-- 134 Jan. 1 Holders of rec. Dec. 12
American Colortype, com.(quar.)
*50c. Dec. 31 *Holders of rec. Dee. 12
Preferred (quar.)
'134 Dec. 31 *Holders of rec. Dec. 12
American European Securities, pt. (qu.) $1.50 Nov. 15 Holders of rec. Oct. 31
American Hardware Corp..lanl'29 Holders of roe. Dec. 150
$1
Amer.
ua"eriy
Home Products (monthly)
25e. Dec. 1 Holders of rec. Nov. 14
Amer. Linseed. pref (quar
134 Janb'29 Holders of rec. Deo. 21a
Dec. 81 Holders of rec. Dec. 158
American Manufacturing. com (quar.)
1
Preferred (quay)
111 Deo. 31 Holders of roe Deo. lfro
American Metal. common (quar.)
The. Dec. 1 Holders of rec. Nov. 200
Preferred (guar.)
114 Dec. 1 Holders of rec. Nov. 200
American Radiator. common (quar.).
$1.25 Dec .31 Holders of me Dec. lla
Preferred (quar.)
154 Nov. 15 Holdersocl rec Nov. 8a
Amer. Rolling Mill. corn.(guar.)
•50e. Jan. 1 *Holders of rec. Deo. 31
Amer. Smelting dr Refining pref.(qu.)_ _
134 Dec. 1 Holders of rec. Nov. 20
50e. Jan. 1 Dec. 16 to Jan. 1
American Stores Co.(guar.)
Extra
50e. Dec. 1 Nov. 16 to Dec. 2
Amer. Sumatra TobaccoNov. 15 Holders of rec. Nov. la
Stock div.(subj. to stkhold. meeting). 13
4.151 Dec. 1 *Holders of rec. Nov. 15
Preferred (quar.)
American Wholesale Corp.. pref.(quar.) 154 fan 2'29 Called tor rod. Jan. 2'29
Nov. 10 Holders of rec. Oct. 31
1
Amparo Mining (quar.)
Nov. If/ Holders of rec. Oct. 130
$1
Anaconda Copper Mining (quar.)
Dec. 17 Holders of rec. Nov. 15a
(special)
75e.
Mining
Andes Copper
750 lan119 Holders of rec. Dec. 21a
Artioorn Corp., com. (quar.)
154 Dee. 1 Holders of roe Nov. 16a
Preferred (quar.)
Assoc. Apparel Indus., corn.(mthly.)* 33 1-3r Dec. 1 *Holders of rec. Nov. 20
• 331-3' fan 2'29 *Holders of rec. Dec. 21
Common (monthly)
Associated Dry Goods 1st pref.(quar.)-- 114 Dec. 1 Holders of rec. Nov. 10a
111 Dee. 1 Holders of rec. Nov. 10a
2d preferred (quar.)
75e. Dec. 31 Holders of rec. Dee. Ila
All. Gulf dr W. 1.13.13. Lines pref. (en.)..
*10c. Nov. 22 *Holders of rec. Oct. 20
Automotive Fan Co., corn. (extra)
1% Jan1'29 Holders of rec. Dec. 200
sabcock & Wilcox Co.(quar.)
13-I Apr119 Hold of rec Mar 20'290
*500. Dec. 1 *Holders of rec. Nov.20
Bat
ubaan
rterKatz, corn.(monthly)
*50e. Jan. 1 *Holders of rec. Dec. 20
Common (monthly)
Preferred (quar.)
•154 Jan 1'29 *Holders of rec. Dec. 20
Bomberger (I. )& CO.111 Dec. 1 Holders of rec. Nov. 10a
Preferred (quar.)
$4 Jan. 15 Holders of rec. Dec. 31
Bankers Capital Corp. COM
$17 Jan. 15 Holders of rec. Dec. 31
Common & preferred (extra)
Jan15'29 holders of rec Dot. 31
$2
Preferred (quar.)
•6214e Dec. 1 *Holders of reo. Nov. 15
Bastian Blessing Co., com (quar.)
Baumann (Ludwig)& Co., 1st prof.(qu.) 154 Nov. 15 Holders of rec. Nov. 1
Beacon 011. prof. Pillar)
5 1.3714 Nov. 15 Holders of rec. Nov. 1
111 Jan. 2 Holders of rec. Dee. la
Bethlehem Steel, pref. (quar.)
30e. Nov. 15 Holders of rec. Nov. 1
Blauner's(Phila.specialty store) corn-75e. Nov. 15 Holder, of res. Nov. 1
Preferred (guar.)
Bloch Brothers Tobacco. corn. (quar.)-. 3754c Nov. 15 Nov 111 to Nov. 14
Dec. 31 Dec 26 to Dec. 80
Preferred (quar 1
--Jan. 2 Holders of rec. Dee. 15
Blumenthal (Sidney) & Co., pref
Nov. 15 Holders of rec. Nov. 8
Bond de Mortgage Guarantee (ouar.)
$1.50 Dec. 1 Holders of rec. Nov. 15
Borden Co.(quar.)
$2.50 Nov. 15 Holders of rec. pct. 31
Boss Mfg. Co., common (quar.)
Nov. 15 Holders of rec. Oct. 31
Common (extra)
$5
Preferred (quar.)
154 Nov. 15 Holders of rec. Oct. 31
Boston Woven Hose & Rub.,com.(ext.)
Dec. 15 Holders of rec. Dec. 1
14rIstol-Myers Co facer i
._
Dee. 31 Holders of rec Dec. 21
fl
British-American Tobacco, ordinary..
(0)
Brown(John W.) Mfg., corn.(quar.)--- •25e. Dec. 1 *Holders of rec. dNov.20
Common (extra)
•12 34c Dec. 1 *Holders of rec. Nov. 20
75e. Nov. 15 Holders of rec. Nov. 5o
Brunswick-Balke-Collender, com.(qu.)Bucyrus-Erie Co., common (guar.)
25c. Jan 2'29 Holners of rec. Dec. 8a
Convertible preferred (quar.)
6214e Jan 229 Holders of rec. Dec. 8a
1% Jan. 2 Holders of rec. Dec. 8a
7% prof (quar.)
*w10 Nov. 6 *Holders of rec. Oct. 12
Burmah Oil(American dep. recto.)
Nov. 15 Holders of rec. Nov. la
Burns Bros., Common A (quar.)
$2
Boller Brothers (guar.)
500. Nov. 15 Holders of rec. Oct. 31
Dec. 15 Holders of rec. Nov. 300
California Packing Corp.(quar.)
$I
Dec. 15 Holders of rec. Nov. 30a
Calumet & Hecla Cons. Copper Co.(qu.) $1
Canadian Converters, Ltd. (quar.)
184 Nov. 15 Holders of rec. Oct. 31
Canadian Fairbanks-Morse, Ltd-pf.(qu) 5114 Dec. 15 Holders of rec. Nov. 30
Dec. 31 Holders of rec. Dee. 211
2
Canfield Off, common (quar.)_
IS( Dee. 31 Holders of reo. Dec. 20
Preferred (quar.)
154
1%
5
Nov. 3 1928.]
FINANCIAL CHRONICLE
2491
Books closed
Per
When
Books Closed
Name of Company.
Days Inclusive.
Name of Company.
Cent. Payable.
Days Inclusive.
Miscellaneous (Conffnued).
Miscellaneous (Coratnued).
Cast Iron Pipe Co., new (qu.)(No. 1)._ *500 Dee. 15 *Holders of rec. Dec. 1
International Shoe. pref. (monthly)
50c. Dee. 1 Holders of rec. Nov. 150
Caterpillar Tractor(quar.)
*550 Nov. 25 *Holders of rec. Nov. 15
nterstate Iron & Steel, corn.(quar.)_ _ $1
l'n15.29 Holders of rec. Jan.5'29a
Extra
*20c Nov.25 *Holders of rec. Nov. 15
Interty pe Corp., corn.(guar.)
250. Nov. 15 Holders of rec. Nov. la
Celluloid Co., podia. let pref. (quar.)_
$1.75 Dec. 1 Holders of rec. Nov. 10
Jaeger Machine (guar.)
*6214c Dec. 1 *Holders of rec. Nov. 16
$7 preferred (guar.)
$1.75 Dec. 1 Holders of rec. Nov. 10
Tea, common (war.)
*El
Jan. 16 *Holders of rec. Jan. 2
Central Investors corp.. Cl. A (quar.). *37 Sic Jan 2'29 *Holders of rec. May la Jewel
Common (extra)
*El
Dee. 15 *Holders of rec. Nov. 30
Centrifugal Pipe Corp.(guar.)
15c Nov. 15 Holders of rec. Nov. 5
Preferred (guar.)
Jan.
131
1 Holders of rec. Dec.al3a
Century Ribbon Mills. pref.(quar.)
144 Deo. 1 Holders of rec. Nov. 20s Jones & Laughlin Steel, corn.
(quar.)
'134 Dec. I *Holders of ree. Nov. 13
Chain Belt Co., corn.(guar.)(No. 1)__ '8234c Nov. 15 *Holders of rec. Nov. 5
Common 'extra)
*1
Dec. 1 *Holders of rec. Nov. 13
Chapman Ice Cream (guar.)(No. 1).... *31Y4c Jan. 15 *Holders of rec. Dec. 24
Preferred (guar.)
*134 Jan. 2 *Ho dots of rec. Dec. 13
Chelsea Exch. Corp.. A a B (qu.)
25c. Nov. 15 Holders of rec. Nov. 1
Kaynee Co. (extra)
*1234c Jan 1'29 *Holders of rec. Dec. 20
Class A & B (guar.)
25c. Fb15'29 Hold, of rec. Feb. 1 '29
Common (extra)
•1234c
AprP29 *Holders of rec. Mar. 20
Class A & B (guar.)
25e. My15'29 Hold, of rec. May 1 '29
Common (extra)
'12340 July1'29 *Holders of rec. June 20
Chicago Yellow Cab Co.(monthly)
25c Dee 1 Holders of roe. Nov. 200 Kinney(G.R.) Co.. Pref.(guar.)
2
Dec. 1 Holders of rec. Nov. 20a
Chickasha Cotton Oil (guar.)
75c Jan 1'29 Holders of rec. Dec. 10a
Kirby Lumber, common (guar.)
144 Dec. 10 Holders of rec. Nov. 30
Quarterly
750. A pr 1'29 Holders of rec.Mar 9'29a Kruskal & Kruskal (quar.)
Quarterly
750 Jul 1'29 Holdersof rec.June10'29a Lake of the Woods Milling, corn.(guar.) 31340. Nov. 15 Holders of rec. Oct. 310
80c. Dec. 1 Holders of rec. Nov. 17
Chile Copper Co.(guar.)
750. Dec. 29 Holders of rec. Dec. 5a
Preferred (guar.)
134 Dec. 1 Holders of rec. Nov. 17
Chrysler Corp.. pref. (guar.)
2
Jan 2'29 Holders of ree. Dec. 174
Landers. Frary & Clark (guar.)
750. Dec. 31 Holders of rec. Dee. 22a
Chumgold Corp.((Var.)
• *75c Nov. 15 *Holders of rec. Oct 31
Lanston Monotype Machine (gust.).... 134 Nov.30 Holders of rec. Nov.
20a
Cities Service, common (monthly)
34 Dec. 1 Holders of rec. Nov. 15
Lehigh Coal & Nay. (guar.)
$1
Nov. 30 Holders of rec. Oct. 310
Common (payable in common stock)
Dec. 1 Holders of rec. Nov. 15
Lehn & Fink Products (guar.)
750. Dec. 1 Holders of rec. Nov. 15a
Preferred and pref. BB (monthly)
Dec.
1
34
Holders of rec. Nov. 15
Libby Owens Sheet Glass, corn. (guar.). *50c. Dec. 1 *Holders of rec. Nov.21
Preferred B (monthly)
Sc. Dec. 1 Holders of rec. Nov. 15
Preferred (quar.)
'134 Dec. 1 *Holders of rec. Nov. 21
Coca-Cola Bottling Sec.(In stock)
* e50c
*Holders of rec. Nov. 5
Loon's Incorporated, pref.(guar.)
$1.6234 Nov. 15 Holders of rec. Oct. 27a
Cohn-Hall-Marx, corn.(quar.)
6234c. Ja. 2'29 Holders of rec. Dec. 15
Lord
& Taylor,common foxtrot_ _
5
Dec. 10 Holders of rec. Nov. 17a
Common (guar.)
62Sic Ap.1'29 Holders of rec. Mar. 15a
1st
preferred
(guar.)
134 Dec. 1 Holders of rec. Nov. 17a
Common (guar.)
62 Sic. Jul 1'29 Holders of rec. June 15
Los Angeles Investment(guar.)
4.3e. Nov. 10 *Holders of rec. Oct. 15
Consol. Bond & Share Corp., Pref.(qu) 154 Nov. 15 Holders of
rec. Oct. 15
Louisiana 011 Refining. pref. (guar.)....... 81.625 Nov. 15 Holders of rec. Nov. la
Continental Can, corn. (guar.)
$1.25 Nov. 15 Holders of rec. Nov. 5a
McIntyre Porcupine Mines (guar.)
250. Dec. 1 Hodlers of rec. Nov. la
Common (payable in common stock).. 3100 Nov.22 Holders of
rec. Nov. 50 McKesson & Robbins, Inc., corn. (qu.)..
40c. Nov. 10 Holders of rec. Nov. 2
Continental Securities, pref.(guar.)
$1.25 Dec. 1 Holders of rec. Nov. 15
Preference series A (guar.)
134 Dec. 15 Holders of rec. Dec. I
Coty, Inc., new stock (guar.)
*50c Dec. 31 *Holders of rec. Dec. 17
Macy (R. H.)& Co ,Inc., new stk.(qtr.)
50e. Nov.15 Holders of rec. Oct. 264
Stock dividend (subject to stockholde rs'
Mallinson (H. R.) & Co.. Inc.. Pf.(qu.) 144 Jan229 Holders of roe. Dec. 20.
meeting Nov. 2)
300
Nov. 20 Holders of rec. Nov.10a Massey-Harris Co., pref.(guar.)
144 Nov. 15 Holders of me Oct. 31
Crosby Radio (stock dividend)
e4
Dec. 31
medaft (Fred) Mfg., corn. (guar.)
50c. Nov. 15 Holders of rec. Nov. 5
Crosley Radio Corp.(quar.)
25e Jan 1'29 Holders of rec. Dec. 200
Mercantile Stores Co., Inc., corn. (qu.). $1.25 Nov. 15 Holders of rec. Oct. 31
Crown Zellerbach, pref. (guar.)
*31.25 Dec. 1 *Holders of rec. Nov. 13
Preferred (quar.)
154 Nov. 15 Holders of rec. Oet. 31
6% convertible pref. (guar.)
*81.50 Dee, 1 Holders of rec. Nov. 13
Merck Corp.. preferred (guar.)
81 Jan 2'29 Holders of rec. Dec. 17
Crum & Forster Insur. Share Corp. cf. P ..*5
Nov. 5 *Holders of rec. Oct. 25
Miami Copper Co.(guar.)
37340. Nov. 15 Holders of rec. Nov. la
Curtis Publishing (monthly)
*50c Dec. 3 *Holders of rec. Nov. 20
Mid-Continent Petroleum, pref. (guar.). 14( Dec. 1 Holders of rec. Nov. 15
Extra
*50c Dec. I( Holders of rec. Nov.
MInneap.-Honey well Regulator. pt.(qu) 151 Nov. 15 Holders of rec. Nov. 3
Davis Industries, class A (guar.)
:3134c Jan I 1" Holders if roe Dee. 20
Mohawk Mining (quar.)
20
$3
Dec. 1 Holders of rec. Oct. 31
Class B (guar.)
31 St c Jan 1 ",
Holders of roe Dee. 20
Mohawk Rubber, corn. (in corn, stock) *1300 Subj.to stkholders meeting Nov.15
Davis Mills (guar.)
1
Dec. 2
olders of rec. Dec. 8
Montgomery Ward & Co.,corn.(qu.) _ $1
Nov. 14 Holders of rec. Nov. 3a
Dominion Bridge(guar.)65c. Nov. 1
folders to rec. Oct. 31
Morris (Philip) & Co., Ltd., Inc.(qu.)
25e.Ja a. 16'29 Hold. of rec. Jan. 2 '290
Bonus
20e Nov. 1
folders of rec. Oct. 31
Munsingwear,Inc.(guar.)
75e. Dec. 1 Holders of rec. Nov. 15a
Dow Chemical, corn. (guar.)
•$1.50 Nov. 1! Holders of rec. Nov. 1
Murphy
(G. C.) Co.(guar.)
25c. Dec. 1 Holders of rec. Nov. 21
Preferred (guar.)
•144 Nov. 1! Holders of rec. Nov. 1
National Bankitaly Co.(extra.)
*50c. onl'29 *Holders of rec. Sept.15
Dunhill International (guar.)
$1
lan15'2• aolders of rec. Dec. 31a
National Hellas Hess. pref.(guar.)
144 Dec. 1 Holders of rec. Nov. 2Ia
Quarterly
$1
"d of rec car 1'290
National Biscuit, corn.(guar.)
81.50 Jan. 15 Holders of rec. Dec. 31a
Eastern Bankers Corp.. preferred (guar.)
'a Deo. 31
Common (extra)
50c. Nov. 15 Holden of rec. Oct. 310
Eastern Theatres(Toronto), corn.(gu.).
50c ••eo. 1
0 Oct. 31
Preferred (guar.)
134 Nov. 30 Holders of rec. Nov. 16a
Eastern UHL Investing Corp.. $6 Pf.(1111) $1.50 Dec.
Homers of rec. Oct. 31
National Brick, pref. (guar.)
134
Nov. 15 Holders of rec. Oct. 31
$7 preferred (guar.)
$1.75 Dec.
Holders of rec. Oct. 31
National Casket. common
*$1.50 Nov. 15 *Holders of rec. Nov. 1
Emporium Capwell Corp. (guar.)
00c. Dec. 2 'Holders of rec. Dec. la Nat. Dairy Products.corn.
(In corn.stk.) *11
Jan 2'29 *Holders of rec. Dec. 5
Enamel& Heating Products, Ltd.,com._ *50c
National Dept. Stores, 2d Prof. (guar-)- *144 Dec. 1 *Holders of rec. Nov. 15
Ewa Plantation (guar.)
*1300 Nov. 1( 'Holders of rec. Nov. 5
National Food Products, cl. A.(guar.)._ 6234c Nov. 15 Holders of rec. Nov. 30
Extra
Nov. 11 'Holders of rec. Nov. 5
*21
National Lead, pref. A (guar.)
144 Dec. 15 Holders of rec. Nov. 30a
Fairbanks Morse & Co.,corn.(guar.) _
75c Dec. 31 Holders of ree. Dec. 12a National Supply, common
(guar.)
Nov. 15 Holders of rec. Nov. 5a
81
Preferred (guar.)
13 Dee. 1 Holders of rec. Nov. 12a
Nestle-LeMur Co., cl. A (go.)(No. 1)
50e. Nov. 15 Holders of rec. Nov. 1
Fair (The), common (monthly)
Dec.
200
1 Holders of rec. Nov. 21a
Newberry (J. J.) Co., pref. (guar.)
*154 Dee. I *Holders or rec. Nov. 15
Common (monthly)
200 Jan. d2 Holders of rec. Dec. 21a New Cornelia Copper (guar.)
50c. Nov. 19 Holders of rec. Nov. 2a
Common (monthly)
20c Febl'29 Hold. oi rec Jan.21 '29a New Jersey Zinc (guar.)
*2
Nov. 10 *Holders of rec. Oct. 20
Preferred (guar.)
13 Feb 1'29 Hold.of rec. Jan.21'29a
Niles-Bement-Pond Co. pref. (qu.).__ •134 Dec. 31 *Holders of ree. Dee. 21
Fanny Farmer Candy Shops. corn. (qu.)
250 Jan 129
Copper.
common
Nichols
500 Dec. 15 Holders of rec May 24
Fashion Park. Inc.. corn. Moor.)
50e Nov. 30 Holders of rec. Nov.Ida North American Invest. toll.),
(No. 1). '1
Nov.20 *Holden of rec. Oct. 31
Fidelity Indust.Bank (guar.)
*$1.50 Nov. 15 *Holders of rec. Oct. 31
NorthCentral Trans Oil(guar.)
150. Dec. 1 Hollers of rec. Nov. 10
Extra
*50c Nov. 15 *Holders of rec. Oct. 31 • Olistocks, Ltd., A & B (gm.)(No. 1)
Nov.
Quarterly
15 *Holders of rec. Oct. 31
'1234c
111.50 Fb15'29 *Holders of rec.Jan 31'29
Old Colony Investment Trust
*30c. Nov. 15 *Holders of rec. Nov. 1
Extra
*500 Fb15'29 *Holders of rec.Jan.31'29
Ontario Steel Products, pref. (quar.)
*40c. Nov. 15 *Holders of rec. Oct. 31
Finance Service (Bait.), corn
4
Dec. 1 Holders of rec. Nov. 15
Oppenhelm. Collins & Co.(guar.)
$1
Nov. 15 Holders 0 :rec. Oct. 260
Preferred (guar.)
Dec. I Holders of rec. Nov. 15
Packard Motor Car Co.(monthly)
250. Nov.30 Holders of rec. Nov. 15.
Firestone Tire dr Rubber. 7% Pt.(qu.)-- 134
134
Extra
$1
Nov. 30 Holders of rec. Nov. 15a
First Federal Foreign Invest.Trust (q1.1.) 21.75 Nov. 15 Holders of rec. Nov. I
Nov. 15 Holders of rm. Nov. 1
Monthly
250. Dec. 31 Holders of rec. Dec. 12a
First Trust Bank,Inc.(qu.)
1234e Dee. 1 Holders of rec. Oct. 31
Monthly
250. Jan. 31 Holders of rec. Jan. 120
Extra
5)4c Dec. 1 Holders of rec. Oct. 31
Monthly
250. Feb. 28 Holders of rec. Feb. 12a
Fisher Brass, pref.. clogs A (guar.)50c Nov. 20 Holders of rec. Oct. 31
Paragon Refining, class A (guar.)
*750 Jan. 2 *Holders of rec. Dec. 15
Fitzsimmons & Connell Dredge& DockParamount Oshawa Theatres (Toronto)
Common (quar.)
*50c Dec. 1 *Holders of rec. Nov. 20
Preference (guar.)
144 Nov. 15 Holders of rec. Oct. 31
FlIntkote Co.(stock dividend)'
100 Subj.to holders meet Oct.25
...Park & Tilford (guar.)
750. Jo 14'29 Holders of rec. Dec. 29.
Follansbee Brothers, corn.(guar.)
50c Dec. 15 Holders of rec. Dec. 1
Stock dividend (guar.)
el
Ja 14'29 Holders of rec. Dec. 29s
Common (extra)
25c Dec. 15 Holders of rec. Dec. 1
Quarterly
750. 4p14'29 Hold.of rec. Mar.29'29a
Preferred (quar.)
1)4 Doe. 15 Holders of rec. Dec. 1
Stock dividend (guar.)
el
Sp14'29 Hold. of rec.Mar. 29'290
Folmar Graflex Corp., pref
334 Dec. 1 Holders of rec. Nov.20
Penmans. Ltd.. common (guar.)
$1
Nov. 15 Holders of rec. Nov. 5
Formica Insulation (guar.)
25.. ian 1'29 Holders of rec. Dec. 15o
Perfection Stove(monthly)
3734c. Nov.30 Holders of rec. Nov.20s
Extra
10- Ian 1'29 Holders of rec. Dec. 150
Monthly
3734c. Dee. 31 Holders of rec Dec. 200
Foster & Kleiser Co., corn.(guar.)
*25c Nrov. 15 *Holders of rec. Nov. 1
Pick Albert) Barth & Co., part pf.(au.). 4344c. Nov. 15 Holders of rec. Oct. 26
General Asphalt, pref. (quar.)
134 Dec. 1 Holders of rec. Nov. I5a Pittsburgh Plate Glass (stock div.)
*e10
Dec. 1 *Holders of rec. Nov.15
General Cable Corp.. class A (guar.). _ $1
lee. 1 Holders of rec. Nov. 10a Pittsburgh Steel.Co., pref.(guar.)
13.4 Dec. 1 Holder.; of rec. Nov. 108
General Cigar, Inc., pref.(guar.)
1*.1 lee. 1 Holders of rec. Nov. 22a Procter & Gamble Co.,corn.(guar.)
412 Nov. 15 *Holders of rec. Oct. 25
General Ice Cream Corp.,Prof.(guar.). _
11.4 'Mc. 1 Holders of rec. Nov. 19
Pro-phy-lac-tic Brush, corn. (extra)....
50c. Nov. 15 Holders of rec. Oct. 3I0
Gillette Safety Razor (guar.)
$1.2' `rec. I Holders of rec. Nov. is Prudence Co., nc., Prof.(guar.)
134 .1 in 15'29 Holders of rec Dec. 310
Stock dividend
5
lee. 1 Holders of rec. Nov. is Pullman Co.(guar.) _
134 Nov. 15 Holders of rec. Oct. 31a
GladdIng, Meirean & ell.. monthly
25. lee 1 Nov 21 to
Nov. 30
Pullman, Inc. 'guar.)
81
Nov. 15 Holders of reo. Oct. 24.
Godman (H. C.) Co.(guar.)
75c. Nov. 10 Holders of rec. Oct. 25
Quaker Oats, prof. (guar.)
•134 Nov.30 *Holders of rec. Nov. 1
Golden State Milk Products (guar.) - - *50c. Dec.
1 *Holders of rec. Nov. 17
Quissett Mills, preferred
*3
Dec.
Goodrich (B. F.) Co., corn.(guar.)
Dec. 1 Holders of rec. Nov. 9a Republic Iron & Steel, common (guar.). .081 Dec. 1 *Holders of rec. Nov.21
$1
1 *Holders of rec. Nov.14
Preferred (guar.)
Jan. 2
Preferred (guar.)
*134 Jan. 2 *Holders of rec. Dec. 14
Clossard (H. W.) Co.. corn. (monthly).- 33 1-30 Dec. 1 Holder of rec. Dec. 10a
Holders of rec. Nov. 20a Richardson Co. (guar.)
*$2
Common (monthly)
Nov.
15
*Holders of rec. Oct. 31
331-30 Jan1'29 Holders of rec. Dee. 20
Extra
oil Nov. 15 *Holders of rev. Oct. 81
Gramophone CoRichfield 011 (guar.)
50e. Nov. 15 Holders of rec. Oat. 20.
Amer dep. rots, for ord. Ms.(reg.). *.u45 Nov. 21
*Holders of rec. Oct. 27
St. Joseph Lead (guar.)
50e. Dec. 20 Dec. 9 to Dee. 20
Great Lakes Dredge & Dock (guar.) _
2
Nov. 15 Holders of rec. Nov. 7
Extra
25e. Dec. 20 Dec. 9 to Dee. 20
Great Northern Iron Ore Prot)
Dec. 28 Holders of rec. Dec. 6a Savage Arms, 2nd pref. (guar.)
*134
Greenfield Tap az Die Corp..6% pf.
Nov. 15 *Holders of rec. Nov. 1
(qu.)
Jan. 2 Holders of rec. Dec. 15
Schulte Retail Stores, corn. (guar.)
873.4o Dee. 1 Holders of rec. Nov.15.
8% pref. (quar.)
Jan. 2 Holders of rec. Dec. 15
Common (payable In corn. stock)
Gruen Watch, common (guar.)
034 Dec. 1 Holders of rec. Nov.15
Deo. 1 Holders of rec. Nov. 20a
Common (payable In corn.
Common (guar.)
u% Mar '29
Marl'29 Holders of rec.Feb.19'290 Scotten Dillon Co. (guar.) stock)
Preferred (quar.)
*30c. Nov. 15 *Holders of rec. Nov. 7
Feb l'29 Hold,of rec. Jan 19'29a
Extra
Gulf States Steel, corn.(guar.)
*30c. Nov. 15 *Holders of rec. Nov. 7
Jan. 2 *Holders of roe. Dec. 15
Sears. Roebuck &
First preferred (quar.)
.1.1M Jan. 2
*Holders of rec. Dec. 15
Quarterly (payable In stock)
Hamilton Watch, pref.(quar.)
el Febl'29 Hold. of rec. Jan.15'29a
1;4 Dec. 1 Holders of rec. Nov. 10a
Quarterly (payable In stock)
el
Hanes(P.IL) Knitting corn.& corn.B
Myl'29 Hold, of me.Apr.13'290
15c. Dec. 1 Holders of rec. Nov. 20
Seeman Brothers, Inc., corn.(extra) _ _
Preferred (guar.)
50c. 3-15-29 Hold. of rec. Mar. 1 '29a
141 Jan. 1 Holders of rec. Dec. 20
Selby Shoe, pref.(guar.)
Hartford Times, Inc.. panic. pref.(qu.) The. Nov. 15
*134 Febl'29 *Holders of rec.Jan. 1529
Holders of rec. Nov. 1
Preferred ((luar.)
*13421 ay 1 '29 *Holders of rec. Apr. 15'29
Hart Schaffner, Marx,Inc.(guar.)
*$2 Nov.30 *Holders of rec. Nov. 15
Sheffield Steel, common (in com. stock) *11
Hawaiian Comm'i& Sugar(extra)
Ap.1'29 *Hold.of rec. Mar.21'29
*250. Nov. 5 *Holders of rec. Oct. 25
Common (payable in common stock)__ .11
Hawaiian Pineapple (guar.)
July1'29 *Hold,of ree. June 20'29
*45c. Nov. 30 *Holders of rec. Nov.
15
Common (payable in common stock)__ .11
Hazeltine Corp.(guar.)
Oct 1'29 *Hold,of rec. Sept. 2029
*25c. Nov. 24 *Holders of rec. Nov.
5
Shepard Stores, [no.. cl. A (guar.)
750. Febl 29 Hold. of rev. Jan.20 29
Hershey Chocolate Corp.. cony. pf.(en.) $1
Nov. 15 Holders of rec. Oct. 254
Class A (guar.)
750. May129 Hold. of rec. Apr.20 29
Prior preferred (guar.)
1)4 Nov. 15 Holders
rec. Oct. 25a Sherwin-Williams Co., corn.(guar.)
Mc. Nov. 15 *Holders of rec. Oct. 31
Hibbard. Spencer Bartlett & Co.(mtb19) 35c. Nov.30 Holders of
of rec. Nov. 23
Common (extra)
*250. Nov. 15 *Holders of rec. Oct. 31
Monthly
350. Dee. 28 Holders of rec. Dec. 21
Preferred (guar.)
Hollander(A)& Son,Inc., corn. (gu.) _ 62)4c. Nov. 15 Holders of
'13.4 Dec. 1 *Holders of rec. Nov. 15
rec. Nov. la Simms Petroleum
400. Dec. 15 Holders of rec. Nov.30
Hollinger Cons. Gold Mines...... _ _
Sc. Nov. 3 Holders of rec. Oct. 17
Sinclair C,onsol. 011 Corp., pref. (qual.). $2
Nov. 15 Holders ot rec. Nov. la
Household Products (quar.)
87,)fc Dec. 1 Holders of rec. Nov.
15a Skelly 011 (guar.)
50c. Dec. 15 Holders of rec. Nov. 15a
Imperial Chem. Industries. Ltd
South Coast Co., pref. (guar.)
81.75 Nov. 15 Holders of rec. Oct. 31
Amer. dep. rcts, for ord shs
*re3
Nov. 15 *Holders of rec. Oct. 16
Southern Grocery Storm corn. (quar.)... *1214c Nov. 30 *Holders of rec. Nov. 15
Indiana Pipe Line (guar.)
$1
Nov. 15 Holders of reo. Oct. 28
Class A guar.)
*6234c Nov. 30 *Holders of rec. Nov. 15
Special
Nov. 15 Holders of tee. Oct. 26
85
Standard investing Corp., pref. (quar.)- 1.3734 Nov. 15 Holders of rec. Oct. 27
Int. Agricultural Corp., prior pt. (guar.) 151 Dee. 1 Holders of
rec. Nov. 15
Standard
011
(Ohio),
Prof.
(guar.)
134 Dec. 1 Holders of rec. Nov. 9
Lnternat. Combustion Engine,corn. tau.)
50e. Nov. 30 Holders of rec. Nov. 19a
Standard Sanitary Mfg., corn. (qua!,)..,
42e. Nov. 25 Holders of rec. Nov. 5
Int. Cont. Invest. Corp.corn.(qu.)
*250. Jan 1'29
Preferred (guar.)
lfd Nov. 25 Holders of rec. Nov. 5
Common (guar./
•25e. Aprl'29
Stewart Warner Speedometer (guar.)..- $1.50 Nov. 15 Holders of rec. Nov. 5a
Common (quar.)
*25c. Sly 1'29
Stroock
& Co.(guar.)
*75.). Dec. 22 *Holders of rec Dec 10
International Harvester, Pref. (guar.)._
134 Dec. 1 Holders of tee. Nov. 30 Sun 011,(S.)
pref.(guar.)
134 Dec. I Holders of rec. Nov. 104
International Paper, corn.(guar.)
60c. Nov. 15 Holders of rm. Nov. la Swan-Finch
Oil Corp., Prof. (guar.).-*43310 Dec. 1 *Holdeer of rec. Nov.
Internat.Safety Razor, class A (quar.)
60c. Dec. 1 Holders of rec. Nov. 14a Texas Corporation
10
(guar.)
75c. an. I Holders of Tee. Nov. 230
Class B
Dec.
75o.
1 Holders of rec. Nov. 14a Thompson (John
R.) Co.(monthly)...
800. Dec. 1 Holders of rec. Nov. 230
Per
When
Cent. Payable.
Name of Corn yang
[VOL. 127.
FINANCIAL CHRONICLE
2492
When
Per
Cent. Payable
Books Closed
Days Inclusive.
Miscellaneous (Concluded).
1% Nov. 15 Holders of rec. Oct. 13a
Tide Water Oil, pref. (guar.)
2a
Tobacco Products Corp.. class A guar.) $1.75 Nov. 15 Holders of rec. Oct.
Nov. 15 Nov. 1 to Nov. 1
3
Tudor City Second Unit. pref
Nov. 15 *Holders of rec. Nov.
*6
Union Buffalo Mills, common
Nov. 15 *Holders of rec. Nov.
*3
First preferred
*234 Nov. 15 *Holders of rec. Nov.
Second preferred
2'29 Holders of rec. Dec. 1
Jan
21.50
corn.
(quar.)
Mtge.,
Union Guarantee
21 Jan2'29 Holders of rec. Dee. 1
Corn. (extra)
$2 Jan2'29 Holders of rec. Dec. 1
Union Mortgage,corn.(quar.)
Jan 2'29 Holders of rec. Dec. 1
*2
Common (extra)
Jan2'29 Holders of rec. Dec. 1
1
0% preferred (guar.)
500. Nov. 10 Holoers of rec. Oct. 180
Union 011 of Calif. (guar.)
82%c Nov. 10 Holders of rec. Nov. 1
Union Storage (quar.)
40c. Dec. 1 Holders of rec. Nov. 170
United Buscult of Amer.. coin. (quar.)
•50c. Dec. 1 *Holders of rec. Nov. 15
(quar.)
A
class
Crate.
Milk
United
21.50 Jan6'29 Hold, of rec. Jan. 2 '295
United Paperboard. pref.(guar.)
21.50 A p15'29 Hold, of rec. Apr. 1 '290
Preferred (guar.)
134 Jan2'29 Holders of tee Dec. 200
of.(qu.).
United Piece Dye Works.64%
Nov. 15
U.S. Bond & Share. common (extra)._ _ •22.50 Dec. 1 *Holders of rec. Nov. 15
*50c. Dee. 1 *Holders of roe.
Participating preferred (extra)
la
Dec.
rec.
of
Holders
15
Dee.
2%
U.S. Cast Iron Pipe* Fdy., corn.(gu.)
131 Dec. 15 Holders of rec. Dec. la
Preferred (flmar.)
20
Nov.
rec.
of
*Holders
1
Dec.
•21
_
(quar.)
Machinery
U. S. Hoffman
•lc. Dec. 10
U. S. Petroleum (quar.)
Dec. 21
U.S. Printing & Litho.. corn.(quar.)___ 111.50 Jan. 1 *Holders of rec. Dec. 31
1t' Jan1'29 Dec. 22 to
U.S. Print. & Lith. 2d pref.(Qum)._
75c. Nov. 15 Holders of rec. Nos.
Vanadium Corp. of Amer.(guar.)
Dec. 15 Holders of rec. Dec. is
$1
Extra
134 Dec. 10 Holders of re,. Dec. la
Vapor Car Heating. Prof. (guar.)
Sc. Nov. 15 Holders of rec. Oct. 3Ia
Venezuelan Petroleum /guar.)
Nov.d16a
Va -Carolina Chem.. prior pref. (quar.). 131 Dec. 1 Holders of rec. Nov. 1
*70e. Nov. 15 *Holders of roe.
Vorclone Corp., pref.(guar.)
21.50 Dec. 1 Holders of rm. Nov. 15
Wagner Elec. Corp., corn. (guar.)
75c Dec. 1 Holders of rec. Nov. 15
Wayazareack Pulp & Paper, corn.(qu.)_
50c. Nov. 15 Holders of rec. Oct. 31
Westfield Mfg., common (guar.)
Nov. 15 Holders of rec. Oct. 31
2
Preferred (guar.)
Dec. 1 Holders of rec. Nov. 15
2
Wheatsworth, Inc., pref. (guar.)
280. Nov. 15 Holders of rec. Nov. 1
Will & Baumer Candle, common (qu.)._
Dec. 1
Wire Wheel Corp., common (No. 1)____ •31 Dec. 15 *Holders of rec. Dec. 1
012 Dec. 15 *Holders of rec.
Class A (participating dividend)
Dec. 20
rec.
of
Holders
1'29
Jan
$1.75
Preferred (quar.)
•134 Dee. 1 •Holders of rec. Nov.26
Witherow Steel, 155 pref. (guar.)
•1M Dec. 1 Holders of rec. Nov.26
2d preferred (No. 1)
of rec. Nov. 100
Woolworth (F. W.) Co.. corn. (guar.)._ _ 21.25 Dec. 1 Holders of
tee. Nov. 5
134 Nov. 15 Holders
Wolverine Portland Cement (guar.)._
rec. Nov. 15a
of
Holders
30
Nov.
50c.
Corp.
(guar.)
Wright Aeronautical
rec. Nov. 20
of
Holders
1
c. Dec.
Wrigley (Wm.)Jr. Co.. corn.(mthly.)._
to Nov. 30
Yellow & Checker Cab,corn. A (mthly.). 6 2-3c Dec. 1 Nov. 26 of rec. Nov. 5
Holders
lb
Nov.
*25c.
Zonite Products (guar.)
that stock
•From unofficial sources. f The New York Stock Exchange has ruled
notice. r The
will not be quoted ex-dividend on this date and not until further be quoted exNew York Curb Market Association has ruled that stock will not
illvidend on this date and not until further notice.
Payable In dock.
a Transfer books not closed for this dividend. a Correction. e
of accumulated
I Payable In common stock. g Payable in scrip. h On account
stock.
preferred
In
dividends. J Payable
A stock as
1 Associated Gas & Electric dividends payable in cash or in class
for each
follows: On clam A stock at rate of 2)4% of one share of clam A stock
share held.
m Sun 011 stock dividend Is six shares for each one hundred held.
at the rate
n Dividend is at rate of six pengoes per share of fifty pengoes par and
of one pengo twenty better per one-fifth share.
o Payable in common stock but subject to stockholders meeting Oct. 15.
p Payable in cash on one-fiftieth of a share of class A stock.
Syndicate stk.
r Dividend is one share of Colon Oil common for each share of Carib
s Payable in common stock but subject to stockholders' meeting Oct. 16.
payable in
C National Dairy •Products declared four per cent. on common stock
Jan 2, 1229.
corn, stock in quarterly installments of one percent. each beginning
quarterly.
u Schulte Retail Stores declared 2% in stock. payable 34%
preferred share of
o To recommend a distribution of one ordinary share and one
of British-Amer.
shares
ordinary
eight
each
for
Ltd.,
Trust,
Tobacco Securities
Tobacco Co.
to Leas deduction for expenses of depositary.
each forty shares Bancltaly
V Dividend is one share Bank of America stock for
Corp. stock.
meeting Jan. 4.
stockholders'
to
subject
dividend
stock
z Curtis Publishing
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The following are the figures for the week ending Oct. 26:
OF BUSINESS
INSTITUTIONS NOT IN CLEARING HOUSE WITH CLOSING
FOR WEEK ENDED FRIDAY, OCT. 26 1928.
NATIONAL AND STATE BANKS-Average Figures.
Loans.
OilierCash Res. Dep., Dep.Other
Gross
Including N. Y. and Banksand
Gold. Bk.Notes. Elsewhere. Trust Cos. Deposits.
$
$
$
$
s
$
Manhattan152,957,000 30,600 2,173,800 19,248,600 1,182,800 150,364,200
Bank of U.S
20,860,000
805,000
Bronx Borough.__ 20,177,000 6,700 675,000
2,018,900
134,500
Bryant Park Bank 1,990,100 80,700 142,300
21,682,000
851,000
- 1,763,000
Chelsea Exch. Bk. 22,020,000
83,259 1,428,469 1,046,125 14,901,975
Grace National... 17,390,424 15.600
Harriman Nat'l- 35,921,000 20,000 758,000 4,235.000 915,000 39,041,000
3,913,500
274,200
93,300
4,224,200 34,300
Port Morris
Public National 113,525,000 22,000 2,040,000 6,968,000 3.500,000 108,218,000
Brooklyn19,196,000 32,500 429,300 2,048,600 870,200 18,688,800
First National
51,448,600
53,171,000 247,000 1,660,000 7,208,000
Mechanics
Nassau National. 21,463,000 90,000 319,000 1,687,000 320,000 19,619,000
74,200 8.701,200
609,600
8,500,000 5,000 140.500
Peoples National_
Al strin 2200200
224 am
AO 7no
2 rms 000
Tnutwra NathInAl
TRUST COMPANIES-Average Figures.
Loans.
•
Cash.
Res. Dep., Dep. Other
Gross
N. Y. and Banks and
Elsewhere. Trust Cos. Deposits.
8
8
$
$
$
Manhattan24,900 53,319,600
807,200 10,919,700
50,214,300
American
16,378,145
132,816
836.035
Bank of Europe& Trust 17,148,490
24,061,345
835,609 1,761,467
23,871,335
Bronx County
252,162,000 *28.599,000 4,941,000 3.200,000 253,8670)0
Central Union
75.621,801 *4,756,100 3,587,100 3.329,700 72,528,900
EmPlre
240,479 18.173,055
203,406 1,305,615
17,953,378
Federation
16,162,000
312,400
16,309,700 *2,049,900
Fulton
275,463,000 2,531,000 39,278.000 1.820,000 263,651,000
Manufacturers
66,552,028
7,844.028
3,950,000
79,301,543
United States
Brooklyn64,070,000
82,188,800 1,396,000 9,731,600
Brooklyn
24,551,347
26.862,479 1,838,782 2,090,754
Kings County
38.300 46,226,900
50,026,400 1,460.600 3,575,100
Municipal
Bayonne, N. J.WI/ Inn 0107005
29/ 0.111
290 nlia
a ,nn 990
Vfanhenhu,
$27,
*Includes amount with Federal Reserve Bank as follows: Central Union,
838,000: Empire, $3,147.000: Fulton, 21,933,800.
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.
Changesfrom
Previous Week
Oct. 31
1928.
S
84,750,000
Capital
110,607,000
Surplus and profits
Loans, disc'ts & Invest'ts 1.115,341,000
713.565,000
Individual deposits
144,400,000
Due to bank,
277,210,000
Time deposits
11,000,000
United States deposits.. _
32,462,000
Exchanges for Clg. House
88,667,000
Due from other banks_ ..
85,745,000
Peeve in lent depositles
10,255.000
Cash In bank
002 0(1(1
Re.a.vn wynaaa In V R nu
Oct. 17
1928.
Oct. 24
1928.
$
$
2
84,150,000
84,150,000
+600.000
+684,000 109,923,000 109,923.000
+8,373,000 1,108,968,000 1,110,811,000
+6,890,000 706,675,000 708,757,000
-1,685,000 146,085,000 150,043,000
+1,577,000 275,633,000 277,109,000
9,369,000
12,471,000
-1,471,000
36,886.000
30,398.000
+2,064,000
91,492,000 100,603.000
-2,825,000
84,697.000
84,901,000
+844.000
9,937,000
9,862.000
+393,000
032.000
1 004 (100
-I Al nnn
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
Philadelphia Banks.-The Philadelphia Clearing House
new return shows nothing but the deposits, ilong with return for the week ending Oct. 27, with comparative figures
the capital and surplus. We give it below in full:
for the two weeks preceding, is given below. Reserve
HOUSE
STATEMENT OF THE MEMBERS OF THE NEW YORK CLEARING
requirements for members of the Federal Reserve System
ASSOCIATION FOR THE WEEK ENDED SATURDAY. OCT. 27 1928.
are 10% on demand deposits and 3% on time deposits, all
Time
to be kept with the Federal Reserve Bank. "Cash in vaults"
•Surplus R. Na Demand
Deposits
Deposits
Undivided
*Capital.
Ete,oing House
is not a part of legal reserve. For trust companies not
Average.
Average.
Profits.
Members
members of the Federal Reserve System the reserve required
$
$
$
8
10.858,000
60.159,000
13,207,600
6,000,000
10% on demand deposits and includes "Reserve with
is
Co._
Bank of N. Y. & Trust
34,765,000
12.500.000 19.418,400 141,670,000
Bank of the Manhattan Co
depositaries" and "Cash in vaults."
50,030,000
legal
133,664,000
37,173,100
25,000,000
ASSOCNat.
America
Bank of
90,000,000 74.502.900 a825,430,000 170,893.000
National City Bank
with the return for the week ending May 14, the
Beginning
8,305.000
6,000.000 20,399,100 129,938,000
Chemical National Bank
45,389,000 Philadelphia Clearing House Association discontinued showing
National Bank of Commerce. 25,000,000 47,428,200 303,899,000
45,683,000
153,894,000
Chat.Phenix NM.Bit.,1)Tr.Co 13,500,000 15,109,000
2,897.000 the reserves and whether reserves held are above or below require5,000,000 26,904.000 117,597,000
Hanover National Bank
32,038,000
11,000,000 17,959,200 178,095,000
at the end of the
Corn Exchange Bank
9,613,000 ments. This will account for the queries
10,000,000 25,310,900 127,180.000
National Park Bank
12,774,000
10,000,000 88,893,100 246.159,000
First National Bank
table.
46,228,000
366.827,000
Irving Tr.Co. 40,000,000 52,705,900
Amer. Exchange
Continental Bank
Chace National Bank
Filth Avenue Bank
Garfield National Bank
Seaboard National Bank
State Bank do Trust Co
Bankers Trust Co
U. B. Mortgage & Trust CO.TIM Guarantee & Trust CoGuaranty Trust Co
Fidelity Trust Co
Lawyers Trust Co
New York Trust Co
Farmers Loan & Trust Co__
EquItable Trust Co
Colonial Bank
1,000.000
60,000,000
500,000
1.000,000
9,000.000
5,000,000
25,000,600
5,000,000
10,000,000
40.000.000
4,000,000
3,000,000
10,000,000
10,000.000
30.000,000
1.400,000
1,492.000
78,803,900
3,308.200
1,920,300
12,734,200
6,828,900
75,541,800
6,385,300
22,922,800
60,479,400
3,681,800
3,935,200
25,1/10,100
22,416,300
27,118,400
3,915,300
6,870,000
b544,483,000
25,599,000
15,580,000
122,336.000
38,602,000
c341,174,000
55,161,000
36,739,000
d430,861,000
40,716,000
17,679,000
138,057,000
el07,721,000
f324,829,000
29.001,000
Clearing Non-Member.
Mechanics'Yr. Co.,Bayonne_
.
500,000
783.200
3,300.000
5,738.000
Arm AAA Ann'OA AKA SAA A 000 221101111
AAA RO4 'Inn
600.000
70,387.000
640,000
420.000
8,430,000
60.488,000
59.938,000
6,952,000
3,157,000
83,408,000
5,350,000
2,367.000
29,348,000
22,950,000
48,842,000
7,399,000
213,977,000;(c)$69,Includes deposits in foreign branches: (a)$276,665,000:(b)
420,; (d) 291,136,000; (e) 22,181,000: (f) 1111,002,000.
Trust corn
*As per official reports: National. Oct. 3 1928: State, Sept. 28 1928:
Valdes. Sept. 28 1928.
Week Ended Oct. 27 1928.
Two Ciphers (00)
omitted.
Trust
Members of
A.R.System Companies.
$
57,225,0
Capital
176,220,0
Surplus and profits
Loans. diseta. & invest. 1,030.262,0
38,992,0
Exch. for Clear. House
89,779,0
Due from banks
128,586,0
Bank deposits
Individual deposits- 608,364,0
269,330,0
Time deposits
946,280,0
Total deposit,
Res. with legal depos67.882,0
Res. with F. R. Bank,
10,050,0
Cash in vault•
77,932,0
Total res. & cash held.
7
Reserve required
Excess reserve and cash
?
in squib
1928.
rota
Oct. 20
1928.
Oct. 13
1928
$
$
II
$
66,725,0
66.725,0
66,725,0
9,500,0
18,441,0 194,661,0 193,993,0 193,979,0
103.832,0 1,134,094,0 1,138,773,0 1,143,987,0
48,202,0
39,783,0
42,525,0
7.91,0
90,291,0 102,054,0
96,120,0
512,0
3,384,0 131,970,0 138,672,0 136,905,0
48,367,0 656,731,0 671,118,0 850.754,0
27,409,0 230,739,0 235,271,0 232,789,0
79,160,0 1,025,440,0 1,045,061,0 1,020,448,0
8,744,0
9,019.0
8,744,0
9.667,0
67,882,0
68,685,0
67,487,0
12,547,0
12,357,0
2,497,0
12,739,0
90,061,0
11,241,0
89,173,0
89,893,0
7
1'
7
7
?
7
7
•Cash In vault not counted as reserve for Federal Reserve members.
9
Nov. 3 1928.]
FINANCIAL CHRONICLE
2493
Weekly Return uf the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon, Nov. 1 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 th4
latest week appears on page ____ being the first item in our department of "Current Events andDiscussions."
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOSE OF BUSINESS OCT. 31 1923.
Oct. 31 1928.10ct. 24 1028. Oct. 17 1928. Oct. 10 1928. Oct. 3 1928. Sept. 261928.Sept. 19 1028 Sept. 12 1928. Nov. 2 1927.
Is
RESOURCES.
$
3
$
3
$
$
5
$
1,182,041,000 1,180,352,000 1,207,448,000 1,198,568,000 1,178,312,000 1,214,889.000 1.167,332,000 1.143.470.000.1,609.809,600
Gold with Federal Reserve agents
71,833,000
68,558,000
72.282,000
69.947,000
69.439,000
65,503.000
Gold redemption fund with U.S. Treas.
71.730.000
40,072,000
68.645,000
Gold held exclusively agst. F. R. notes 1,253,877.000 1,248,910,000 1.279,730,000 1.268,007,000 1,248,259,000 1,280,392.000 1.239.062.000 1.212,115,000 1,649,881,000
709,223,000 706.947.000 677,753,000 682,992,000 688,054.000 666,714,000 720,346,000 678,301.000 663,971.000
Gold settlement fund with F. R.Board.
Gold and gold certificates held by banks. 677.996,000 690,373,000 678,629,000 673.726,000 680,322,000 685,896,000 666,482,000 738,530,000 677,945,000
2.641,096.000 2,646,230,000 2,636,112.000 2.624,725,000 2.616.635.0002,633.002.000 2,625.890.000 2.628,946,000 2.931,797,000
131,900 000 132,034,000 133.275,000 128,213,000 134,766,000 138,082.000 142,366,000 141.999.000 134,856,000
Total gold reserves
Reserves other than gold
2,772,996.000 2.778,294,000 2,769,387.000 2,752,938,000 2,751,401.000 2,771,084.000 2,768,256.000 2,770,945,000 3,066,653,000
Total reserves
56,874,000
57,487,000
56,192,000
Non reserve cash
53,801,000
50,266,000
56,174.000
59,878,000
59,044,000
55,657,000
Bills discounted:
Secured by U.S. Govt obligations._ 562,096.000 553,393,000 569,984,000 609.355.000 616.087,000 610.143,000 671,977,000 656,035.000 208,723,000
370,175,000 358,534,000 365,826,000 384,047,000 409,831,000 400.623,000 421,856,000 413,211,000 170,498.000
Other bills discounted
Total bills discounted
tulle bought in open market
V 8. Government securities:
Bonds
Treasury notes
Certificates of Indebtedness
932,271,000
440,376.000
911.927,C00
401.478,000
935,810,000
379,409,000
53,359,000
121,582,000
52,158.000
53,412,000
12.5.667,000
51.968,000
53,071,000
124,330,000
53,955.000
53,271,000
86,281,000
87.160.000
Total U. S. Government securities.
'
other securities (see note)
227,099,000
3,730,000
231,047,000
3,730,000
231,365,000
5,280,000
226,712,000
4,580,000
993,402,000 1,025.918.000 1.010,766,000 1,093,833,000 1,069.246,000
331,768,000 309.976,000 263.419.000 237.189,000 211.160.000
53,149,000' 53,377,000
90,363,000
89.222,000
87,092,000
86,433.000
230,604.000
4,580.000
229.032.000
4,580.000
379421,000
3,14.576.000
53.005.000
87,976.000
83,746.000
53,362,000
87,886,000
80.096,000
277,478,600
102,852,000
146,046,000
224,727,000
4,580,000
221,344,000
2.020.000
526,376.000
600,000
Total bills and securities (see note)._ 1,603,476,000 1,548,182,000 1,551,864,000 1,556,462,000 1.571,078,000 1,507,797.000 1,560,329.000 1.503,770.000 1,240.773,060
Gold.held abroad
.
732,000
574,000
732.000
Due from foreign banks (see note)
574,000
574,000
573.000
573.000
572,000
565,000
694,479,000 734,235,000 975.181,000 716,985,000 780.349,000 689,765 000 818,337.000 771.589,000 715,124,000
Uncollected Items
60,513,000
60,548,000
60,493,000
60.318,000
Bank Premises
60,368,000
80,320,000
60,314.000
60,305.000
59.774.000
8,933.000
8,449,000
10,473,000
All other resources
8.909.000
9,135,000
8,841,000
8.457.000
9,190,000
1-,847,000
Total resources
LIABILITIES.
Il R. notes In actual circulation
1/eposits.
Member banks-reserve account
Government
Foreign banks (see note)
Other deposits
5 193,038,000 5.187,892.000 5,424,164,000 5,146.728,000 5.226.430,000 5,094,554.000 5,275.310,000 5,176.249,000 5.-32,393,000
Total deposits
Deferred availability items
Capital paid In
Surplus
All other liabilities
2,419,022.000 2,374,473,000 2,395.114.000 2,345,758,000 2.413,990,000 2,366.150.000 2.458,952.000 2.388.120.000 2,404,294,000
655,508,000 689,914,000 900,479,000 666,067,000 700,191,000 638,620.000 730,CO3.000 694,925.000 654,634,000
145,878,000 145,926,000 145,677,000 145.588.000 143,658.000 145,618.000 145,376.000 144,986,000 131,388,000
233.319,000 233,319,000 233,319,000 233.319,000 233,319.000 233.319.000 233,319.000 233,319,000 228,775.000
33,851,000
34,495,000
32,525.00
30.786,000
29.642,000
29.266.000
27,537,000
26.632.000
16,186,000
1,709,816.000 1,710,409,000 1,717,050,000 1,725,212,000 1,703,600,000 1.681,581,000 1.679,521,000 1,688,267.00011,717,116,000
2,370,988,000 2,321,838,000 2,358,874,000 2,313,195.000 2.349,553,000 2,315,812,000 2,360,534,000 2,348.676,00012,362,429,000
20,498.000
25,240.000
6,210,000
3,194,000
32,569.000
12,699,000
45,379.000
9,617,000
6,123,000
6,099,000
6,685.000
6,945.000
5.942.000
5,266,000
7.337,000
7,459.000
5,952,000
5,433,000
21,437,000
20,709,000
23,085,000
25,926,000
24,101,000
30,302,000
45,580,000
23,875,000
30.309.000
Total Itabilities
5,198,038,000 5,187,892,000 5,424,164,000 5.146.728.000 5.228,430,000 5,094,554,000 5,275,310.000 5,176.249,000 5,152,393.000
Ratio of gold reserves to deposlta and
64.0%
64.8%
64.1%
F. R. note liabilities combined
63.6%
64.5%
65.1%
63.5%
64.5%
71.1%
Ratio of total reserves to deposits and
67.2%
68.0%
67.3%
F Ft. note liabilities comblned
67.6%
66.8%
68.5%
66.9%
68.0%
744%
Contingent liability on bills purchased
250,941,000 262,421,000 258,979,000 268.863,000
for foreign correspondents
267.635 272.886.000 274.054,000
277.285 136,595,000
---DIstrfOudon Oy Maturities$
$
$
$
3
8
$
$S
131,511,000
119,115,000
market.
bills
open
in
132,637,000
bought
1-15 days
114,237;000 121,609,000
97,048,000
93.229.000
97.147.000 139,458,000
770,441,000 770,689,000 800,659.000 860,385.000 887.007,000 863.522,000 924.738,000 899.027,000 301,645,000
1-15 days hills discounted
4,830,000
4,461,000
1-16 days U 8. certif. of Indebtedness_
4.126,000
4,275,000
5.380.000
4,330.000
2,308.000
16.375,000
1-15 days municipal warrants
16-30 days bills bought In open market
52,332,000
39.703.000
37,781,000
30,570.000
30.889.000
35.433,000
34.741,000
36,551,000
64,157,000
42,312,000
38,516,000
16-30 days bills discounted
37,457,000
39,193.000
35.788,000
44.257,000
57,735.000
54.108,000
20,295,000
16-30 days U. S. certif. of Indebtedness
16-30 days municipal warrants
open
market
_
139.843,000
bought
In
hills
123,392,000
96.808.000
31-60 days
57.777.000
73.626.000
43,168.000
39,862,000
40.304,000
62,167,000
66,556,000
57,780,000
56,490,000
31-60 days bills discounted
54,174,000
55,401,000
57.729,000
65,552,000
69.054.000
34,175,000
11,229,000
11,596,000
11,058.000
31-60 days U.S. certif of indebtedness_
31-60 days municipal warrants
100,000
61-90 days bills bought In open market _ 111,296,000 114,293,000 105,813,000 107.588,000
94,304,000
81.424,000
63,551,000
31,622.000
66,033,000
35,014,000
29,251.000
27,942.000
61-90 days bills discounted
31,357,000
34,308,000
37.780.000
37.253.000
38.781,000
17,054,000
26,000
37.759,000
61-90 days U.8, certif. of Indebtednesa
32,805,000
40,583.000
45,324.000
745,000
3C,000
30,000
30,000
30,000
81-90 days municipal warrants
30.000
5,934,000
4,975,000
6.370.000
5.738.000
5,397.000
Over 90 days bills bought in open market
6.344,000
5.806.000
5.536.000
2.761,000
17,948,000
15,691,000
13.262,000
Over 90 days bills discounted
9,732,000
11.698.000
7,478,000
8.550.000
8.276.000
6,052,000
36,099,000
35,911,000
33,745.000
43.953.000
50,080.000
Over 90 days certif. of Indebtedness
41,250,000
36.114.000
62,976,000 146,046,000
Over 90 days municipal warrants
30.000
30.000
30.000
V. R. notes received from Comptroller._ 2,911,308,000 2,912,632.000 2,88.3,012,000 2,872.292,000 2,864,043.000 2,859.232.000 2.848.579.000 2,850,462.000 2,921,690,000
813,920,000 798,150,000 769.460.000 772,041.000 773.720.000 774.385.000 766.025.000 776,996.000 800.395,000
V. R. notes held by F. R. Agent
2,097,388,000 2.114,482.000 2.113.552.000 2.100,251.000 2.090.323.000 2,084.847.000 2.082,554,000 2,073.486,000
Issued to Federal Reserve Banks
2,121,295,000
How Secured346,587,000 346,567,000 346.568,000 346.568.000 344,067.000 344,067,000 341.567.000 341,321,000
By gold and gold certificates
400,993,000
102.686,000
92.470,000
()old redemption fund
92.360.000
92.755.000
98,510.000
88.586.000
91,105.000
91,016,000 106,509.000
()old fund-Federal Reserve Board__ 732,701,000 741,315.000 768,520,000 759,245,000 735,735.000 779,717,000 737.170.000 711,133,00011302.307.000
1.318,367,000 1.257,740,000 1.244,281,000 1.270.638.000 1,291,675.000 1.214.971.000 1.277.362.000 1,236,448.000
By eligible patter
686,383,000
2.500.411,000 2,438,092.000 2.451.729 000 2 4110 208 000 2 480 AR7 AAA 9 490 ken nnn 2 444 804 Ann 2 070 01R /Inn, 944 109 AIM
Tntal
NOTE.-Begiuning 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 duels
foreign correspondents. In addition, the caption "AU other earning amts." previously made up of Federal Intermediate Credit bank debentures, was changed to
"Other securities." and the caption "Total earning assets" to "Total bills and securitlea." The latter term was adopted as a more accurate description of the total of the
dhpount acceptances and securities acquired under the provisions of Elections 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 OCT. 31 1928
Two ciphers (00) emitted.
Bostois. New York.
Total.
Federal genres &Pa O./$
$
s
RESOURCES.
I
301d with Federal Reserve Agents 1,182,044,0 121.047,0 174,703,0
71,833,0 7,567.0
15,472,0
Sold retro fund with U.S.Treas.
_
Gold held end.agst. F. R.. notes 1,253,877,0 128,614,0 190,175,0
Sold settle',fund oltb F.R.Board 709,223,0 58,400,0 271,502.0
677,996,0 35,409,0 434,008,0
Sold and gold certificates
Phila.
s
Cleveland. Richmond Atlanta. Chicago. St. Louis. Minneap. ICan.C.,
s
s
s
$
s
s
$
Dallas, So,Pro.,
$
$
84,763,0 152,210,0 33,031,0 59,189,0 253,824,0 21,324,0 44,586,0 40,295,0 23.701,0 173.371,0
9,408,0 4.778,0 2,852,0 4,765,0 8,270,0 5,144,0 3,905,0 3,975,0 2.123,0 3,574,0
94,171,0 156,988,0 35.883.0 63,954,0 282,094,0 26,468,0 48,491.0 44,270,0 25.824,0 176,945,0
38,880,0 53,672,0 33,927,0 16,294.0 102,972,0 22,437.0 25,712,0 26.604,0 28,005,0 32,818.0
28.119,0 45,690.0 8,462,0 4,594,0 62,091.0 8,873.0 5.285,0 6,564,0 7,030,0 31,871,0
2,641,096,0 220,423,0
131,900,0 15,924,0
895,685,0 161,170,0 256,350.0 78,272,0 84,842,0 427,157,0 57,778,0 79,488,0 77,438.0 60,859,0
21,046.0 7,044,0 12,442,0 8,326.0 12,277,0 16,073,0 15,544,0 2.127,0 5,966,0 5,418,0 241,634,0
9,713,0
2,772,996.0 236,347,0
Total reserves
56,874,0 7,455,0
gon-reservecash
discounted:
31114
562,096,0 20,198,0
l3ec. by (1.8. Govt. obligations
370,175,0 12,828,0
Other bills discounted
916,731,0 168,214,0 268,792,0 86,598,0 97,119,0 443,230,0 73,322,0 81,615,0 83,404,0 66,277,0
16,097,0 1,054,0 4,106,0 4,178,0 3.589,0 8,234,0 3,201,0 1,284,0 2,131,0 1,966.0 251,347,0
3,579,0
Total gold reserves
teserve other than gold
Total bills discounted
sIlls bought in open market
1. 8. Government securities:
..
Bonds
Creasury notes
:lertIftcates of Indebtedness
932,271,0 32,826,0
440,376,0 43,895,0
53,359,0
121,582.0
52,158,0
701,0
3,482,0
2,705,0
row u ri Gov't securities--
227,099,0
6,888,0
191,345.0 70.434,0 46,871.0 19,391.0 20,563,0 1C0,182,0 24,278,0
70,116,0 15,684,0 24,259,0 25.224,0 55,623,0 67,849,0 23,115,0
7,058,0 13,722,0 12,731,0 35,323,0
6,585,0 24,356,0 9,743,0 34,993,0
261,461,0 86,118.0 71,130,0 44,615,0 76,186,0 168,031,0 47,393,0 13,643,0 38.078,01 22,474,0
138,190,0 20,671,0 41,531,0 20,998,0 25,614,0 31.619,0 11,918,0 19,018,0 24,908.0 21.732,0
1,384,0
585,0
548,0 1,152,0
208,0 19,927.0 7,125,0 4,519,0 8.505,0 8,663,0
29.044,0 10,693,0 28,986,0 1,279,0 3,695,0 7,688,0 11.837,0 4,824.0 1,902,0 4,596,0
16,899.0 9,794,0 3,752,0
993,0 1,367,0 6,710,0 1,814,0 1,363,0 1,075,0 2,849,0
47.327,0 21,072,0 33,286,0 3,424,0 5,270.0 34,325.0 20,776,0 10,706,0
11.482,0 15,908,0
70,316.0
40,276,0
42,0
13,556,0
3,037,0
16,635,0
[VOL. 127.
FINANCIAL CHRONICLE
2494
assouacrs (concivaetnTwo Ciphers (00) omitted.
$
3,730.0
Dthereecurides
Total bills and securities
Due from foreign banks
Uncollecteditems
Bank premises
Another resources
New York.
Boston.
Total.
$
200.0
$
Phila.
$
30,0
Cleveland Richmond Atlanta. Chicago. St. LOWS. Afinneap. Kon.City. Dallas. San Pros
t
$
8
8
500,0
$
$
I
3,000,0
$
$
447,184,0 127,891,0 145,947.0 69,037.0 107,070,0 233,975.0 80,087.0 43,867,0 74,468,0 63,114,0 127,227,0
35,0
17,0
18,0
14,0
21,0
52,0
69,0
25,0
21,0
47,0
376.0
192,578,0 56,678,0 61,229.0 55,471,0 24.473,0 82,834,0 31,794,0 15,380,0 39,707,0 28,844,0 36,992,0
16,675,0 1,751,0 6,806.0 3,698,0 2,867,0 8,720,0 3,930,0 2,202,0 4,308,0 1,939,0 3,828,0
654,0
410.0
3.59,0
448,0 1,408,0
70730
463,0 1,690.0
151,0 1,335.0
1,142,0
1,603,476,0 83,609,0
37,0
732.0
694,479,0 68,499,0
60,548.0 3.824,0
166,0
8,933,0
5 198,038,0 399,937,0 1,590,783,0 355,786.0 488,267,0 219,470,0 236,829.0 777,769,0 192,803,0 145,770,0204,395,0 162,567,0 423,662,0
Total resources
LIABILITIES.
F. R. notes in actual circulation. 1,709,816,0 149,712,0 333,457,0 128,123,0 200,927,0 73,481,0 128,684,0 297,041,0 60,974,0 61,768,0 63,269,0 48,042,0 164,338,0
De notate:
Member bank-reserve met_ 2,370,988,0 151.171,0 944,109,0 133,368,0 184,739,0 70,026,0 65,125,0 342,218,0 79,718,0 56,433,0 79,544,0 70,352,0 184.185,0
888,0 2,172,0
884,0 1,088,0 3,264,0 2,328,0 2,431,0 1,198,0 1,048,0 1,025,0
2,307,0
20,498,0 1,865,0
Government
374,0
184,0
190,0
142,0
226,0
269,0
221,0
548,0
732,0
500,0
2,318,0
395,0
6,099,0
Foreign hank
77,0 4.828,0
649,0
404.0
721,0
176,0 2,281,0
379.0
136,0 1,145,0
10,428,0
213,0
21,437,0
Other depoeits
Total deposits
Deferred availability items
Minitel paid In
gurplue
MIother liabilities
959,162,0 134,888,0 187,520,0 73,938,0 67,850,0347,662,0 81,863,0 58,027,0 91,408,0 71,501,0 191,559,0
174,705,0 54,110,0 58,136,0 51,947,0 22,953.0 76,524,0 32,588,0 14,601,0 35,315,0 29,316,0 38,628,0
49,206,0 14,578,0 14.392,0 6,102,0 5,239,0 18,447,0 5,405,0 3,008,0 4,197,0 4,317,0 10,865,0
63,007.0 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
864,0 1,643,0
11,246.0 2,425,0 3,271.0 1.678,0 2,107.0 5.317,0 1,576.0 1,327,0 1,160,0
2,419,022,0 153.644,0
655,508,0 66,685,0
145,878,0 10,122,0
233,319,0 17,893,0
34,495,0 1,881,0
Total liabilities.
5,198,038,0 399,937,0 1,590,783,0 355,786,0 488,267,0 219,470,0 236,829,0 777,769,0 192,803.0 145,770,0 204,395,0 162,567,0 423.662,0
Memoranda.
70.6
55.4
53.9
68.1
51.3
49.4
68.7
69.2
58.7
64.0
70.9
77.9
67.2
Reserve ratio(per cent)
gontingent liability on bills pur18,388,0
9.064,0
9,323,0
6,992,0
11,136,0
35,998,0
10,877,0
13,208,0
26,934.0
24,603,0
64,994,0
19,424,0
250,941,0
correspond'ts
foreign
glassed for
si R. notes on hand (notes ree'd
Dem F. R. Agent less notes In nc•••• eern n nes Preen •.• ..n.., an° A OA ,11.411 ft ,11 AAA ft 1 K Cflei al *1 01 An AK .1.1g. A 10 °INCA, .1 1..C. 11 IA Mtn 11 lf.•A.,..• CA•All"•n
•
,
•
.
„
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
FEDERAL RESERVE NOTE ACCOUNTS OF FEDERAL RESERVE AGENTS AT CLOSE OF BUSINESS OCTOBER 24 MS.
Boston. New York.
Total.
Federal Reserve Agent at-
Phila. Cleveland. Richmond Atlanta. Chicago. St. LOW. Mtnneap. Ran.Olts. Dallas. SasPros
3
Two ciphers (00) omitted
F.R.notes rec'd from Comptroller 2,911.308.0240,494.0
LB.notes held by F. R. Agent__ 813,920,0 57,010.0
8
$
5
i
$
$
$
$
5
S
720,905.0 208.563,0 268,603,0 113,589,0 220,098,0 462,786,0 90,589,0 84,652,0 105,992.0 73,802,0 321,235,0
96,800,0
15.312,0
32,660,0
15,739,0
17,410,0
120,270,0
288,780,0 50,000,0 37.230,0 24,509,0 60,200,0
F. R. notes Issued to F. R Bank_ 2,097,388,01183,484,0
Oollateral held as security fOr
F. R notes Issued to g. R. Bk.
346,567,0 35,300,0
Gold and gold certificates
102,686,0 17,747,0
Gold redemption fund
732,791,0 68.000,0
Gold fund-F. R. Board
1,318,367,0 76,701.0
Eligible paper.....
434,125,0 158,563,0 231,373,0.1 89,080,0 159,898,0 342,516,0 73,179,0 68,913,0 73,332,0 58,490,0 224,435,0
17,303,01 3000,0
7,600,0 14,167,0
I 50,000.0 6,690,01 27,100,0
153,407.01
16,296,0 10,986.0 12,210,0 7,341,0 4,089.0 2,824,0 2,724,0 2,419,0 2,438,0 4,398.0 19,217,0
5.000,0 73,777,0 90.000,0 19.000,0 28,000,0 251,000,0 11,000,0 28,000,0 37,860,0 2,000.0 119,154,0
375.669,0 86,764,0 110.759,0 60.462,0 101.737.0 199,436,0 59.260,0 30.451,0 62.715.0 44.161,0 110.252,0
550,372,0 171,527,0 262,969.0 93,493,0 160,926,0 453,260,0 80,584,0 75,037,0 103,010,0 67,852.0 283,623,0
2,500,411,0 197,748.0
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 632 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 ____ immediately following which
we also give the figures of New York and Chicago reporting member banks for a week later.
OF
PRINCIPAL RESOURCES AND LIABILITIES OF ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE
BUSINESS OCT. 24 1928 (In thousands of dollars).
Total.
Federal Reserve District-
Boston. I New York
Phila.
Cleveland. Richmond Atlanta, (Jhicago. St. Louis, Afinneap. Kan.00y. Dallas. San Fran,
$
$
$
0
$
8
22.383,130 1,521,857 8,459.627 1,231,664 2,195,798 678.069
Loans and Investments -total
$
S
644,938 3,338,152
$
715,812
$
397,109
8
685,107
$
5
483,242 2,030,855
_ 15,949,278 1,091.570 6,117.100
940,064 1,467,545
522,732
507,690 2,467,952
511,236
262.999
439.932
360,835 1,359,623
113,149
Secured by U. S. Gov't obliga'ns
Secured by stocks and bonds.-_ 6,663.727
All other loans and (Recounts__ 9,172,402
38.741
11.744
410,498 2,905,173
669,330 3,173.186
12.085
6,525
439.869 640,177
393,670 815.283
2,592
184.123
336,017
22,107
3,565
138,162 1,068,051
365,963 1,377,794
3,377
209.606
298,253
2,570
83,351
177,078
3.192
113,950
322,790
2,247
87,991
270,597
4,404
382.778
972.441
6,433,852
430,287 2,342,527
391,600
728,253
156,237
137,248
870,200
204,576
134,110
245,175
122,407
671,232
U. S. Government securities_ . 3,059,416
Other bonds, stocks and securities 3,374.436
162,011 1,201,345
268,276 1,141.182
116,106
275,494
340,211
388,042
72,173
84,064
64,320
72.928
371,184
499,016
77.344
127.232
74,252
59,858
121,991
123,184
84,925
37.482
373,554
297.678
762.491
66,818
78,727
14,863
129,238
31,619
39,889
12.311
39,106
10,177
261,342
40,633
45,557
7,359
27,349
6,137
56,610
12,063
35,518
9,953
118,493
21,925
Loans and discounts-total
Investments-total
Reserve with F. R. Bank
Cash I n vault
Net demand deposits
Time deposits
government deposits
Due from banks
Due to banks
Borrowings !rem F. R. Bank-total
Secured by U.S. Gov't oblIgieniAll other
1,696,410
253,528
102,090
19.670
13,203,720
6,918,320
141.523
939,084 5,690.777
474,442 1,760,345
45,839
10,654
718,495 1,038.949
295,911 953.538
12.112
11.038
360,166
245,928
5,380
310,801 1,884,056
235,935 1,259,187
12.934
12,068
383,413
240,053
3,907
232,694
134.606
823
498.387
179,741
3,262
313.407 833,491
130,052 1,008,582
13,109
10,397
1,135.913
3,169,929
48.903 140.347
139,157 1,215,583
57,063
162.790
96,367
222,292
51,378
103,854
79,217
105,491
231,810
465.112
53,062
122.021
51,928
95.843
118,474
210,531
65.503
128,321
141,861
198.934
202,731
50,310
63,106
24,295
48,296
121.565
30,754
15,740
23,280
19,411
71,690
15.737
15.017
9,815
5,925
15,127
8,153
11,763
7,648
55,736
15,954
29
24
64
44
54
688,174
16,996
445,175
242,999
9,235
7,761
130,070
72,661
43,364
6,946
38,557
24.549
14.056
10,239
14,600
33,696
87.115
34,450
Ass
25
77
47
70
R4
Si
02
IIIA•nt•A•• esf nanny...we h
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 Oct. 31 1928
In comparison with the previous week and the corresponding date last year:
ReSOUTC48Gold with Federal Reserve Agent
Gold redemp.fund with U.S.Treasury.
Oct. 31 1928. Oct. 24 1928. Nov 2 1927.
$
$
s
174,703,000 174.800.000 350.312,000
10,051,000
16,959,000
15,472,000
Gold held exclusively east F. R. notes_
Gold settlement fund with F.R Board
Gold and gold certificates held by bank
190,175,000
271,502,000
434,008,000
191,759,000 360,363,000
214,795,000 261,784,000
448,447,000 423,580,000
Total gold reserves
Reserves other than gold
895.885.000 855,001,000 1,045.727,000
21,745,000
22,586,000
21,046,000
Tots,reserves
Non-reserve cash
Blue discountedSecured by U.S. Govt. obligations...
Other bids discounted
916,731.000 877,587,000 1,069,472,000
19,238,000
17,074,000
16,097,000
155,646,000
91.607,000
43,803,000
32,082,000
Total bills discounted
Bills bought in open market
U.S.Government securitiesBonds
Treasury notes
Certificates of indebtedness
261,461,000 247,253,000
138,196.000 121,454,000
75,885,000
101,649,000
1,384,000
29,044,000
16,899,000
1,384,000
29.966,000
19,182,000
49,157,000
22,024,000
35,223,000
47,327.000
200,000
50,532.000
200,000
106,404,000
Total U.S. Government securities......
Other securities (See Note)
Total bills and securities (See Note). _ .
191,345,000
70,116.000
447.184.000
Oa. 31 1928. Oct. 24 1928. Nov. 2 1927Resources (Concluded)Gold hetd abroad
Due from foreign banks(See Note)
Uncollected Items
Bank premises
All other resources
Total resources
419,439,000 283,938,000
376,000
192.578,000
16,675.000
1,142,000
376,000
199.289,000
16,675,000
1,294,000
213,009
176,353,000
16,276,000
5,281,000
.. 1,590.783.000 1,531,734,000 1,570,971,000
LtablittlesFed', Reserve notes in actual circulation. 333,457,000 332,304,000 372,144,000
Deposits-Member bank, reserve acct.. 944,109,000 881.428,000 920,480,000
539.000
4,450,000
2,307,000
Government
1,455,000
2,905,000
Foreign bank (See Note)
2,318,000
22,233,000
7,557,000
Other deposits
10,428,000
Total deposits
Deferred availability Items
Capital paid in
Surplus
All other liabilities
Total liabilities
Ratio of total reserves to deposit and
Fed', R wve note liabilities combined_
Contingent liability on bills purchased
for foreign correspondents
959.162,000 896,340,000 944,707,000
174,705.000 179,811.000 148.884,000
39,823,000
49,191,000
49,206,000
63,007,000 63,007,000 61,614,000
3,799,000
11,081,000
11,246,000
1,590,783.000 1,531,734,000 1,570,971,000
70.9%
71.4%
81.2%
64,994.000
76,474,000
51,628.000
were added In order to show separately the amount of balances held abroad and amounts due
NO l'E. oegiuulua with tne statement of On. / £525. two new items
easing assets,- previously made up of Federal Intermediate Credit Bank debentures, was changed to
to foreign correspondents. In addition, tile caption. "All other
and securities." '1 he latter term was adopted as a more accurate description of the total of
bills
"Total
to
assets"
-Other securities." and the caption. "Total earning
which, it was stated, are the only items Included
She discounts. aceeptances and securities acquired under the provision of Sections 13 and 14 of the Federal Reserve Act,
.t3reba. •
Nov. 3 1928.]
FINANCIAL CHRONICLE
New York City Realty and Surety Companies.
(All prices dollars per share.)
vauturs' Oatztit.
Wall Street, Friday Night, Nov. 2 1928.
Railroad & Miscellaneous Stocks.—Bee page 2485.
Following are sales at Stock Exchange this week of shares
not represented in our detailed list on pages which follow.
STOCKS.
1Veek Ended Nov. 2.
Sales
for
Week.
Range for Week.
Lowest.
Highest.
Range Since Jan. 1.
Lowest.
Highest.
Railroads—
Far. Shares
per share.
per share.
orshare.5 per share.
Brunswick Term rights.- 27,800
Nov 1
% Oct 29
% Novi
% Oct
Buff Roth & Pitts_ _100
210 98% Nov 1 100
Oct 29 80
Feb101
Oct
Preferred
100
110 98% Oct 27101% Oct 29 94
Mar 105% May
Buff di Susquehanna_100 2,400 35 Oct 30 53% Nov 2 32% July 5334 Nov
Preferred
100
PO 50
Nov 1 55
Nov 2 38
Sept 56% Apr
Canada Southern__ 100
50 61
Oct 30 61
Oct 30 58% Sept 69
Apr
Caro CI & Ohio
100
10 90
Nov 2 90
Nov 2 88% Oct 96
Jan
Certificates stpd 100
110 99% Nov 2100% Nov 2 98
Sept 107% Mar
Central RR of NJ
100
100 315 Oct 31 315 Oct 31 297% Feb 375
May
Ch Ind & Louisv pref 100
200 74% Nov 2 7414 Nov 2 73% Oct 81% May
Cuba RR pref
100
320 80 Oct 31 83 Oct 27 80
Oct 94 June
Detroit & Mackinac_100
100 40 Oct 27 40 Oct 27 40
Oct 50
Jan
Preferred
100
10 60 Oct 30 60
Mar
Oct 30 40
Oct 65
Erie & Pittsburgh- _ _50
40 65
Nov 2 65 Nov 2 61% Oct 69
May
Havana Elec Ry
• 100 9 Oct 30 9 Oct 30 7
Aug 17% June
Preferred
100 280 63% Oct 31 66% Oct 30 63% Oct 78% Sept
Hocking Valley
100
20 355 Oct 31 384% Oct 29 340
May
July 440
III Cent lensed line_ _ _100
60 80% Oct 30 80% Oct 30 79% June 86
Apr
RR secured stk ctf_100
Nov 1 75
160 80
Nov 1 80
July 82% June
Morris 8, Essex
50
40 83% Nov 1 83% Nov 1 82% Aug 89 .June
Nash Chatt & St L__100 220 178 Oct 27179% Nov 1 171% Aug 2043( may
N Y Lack & Western 100
20 107 Oct 27 107
Oct 27 106
Aug 112% June
Northern Central_
50
101 85% Oct 27 85% Oct 27 81% Aug 90% June
Pacific Coast 2d pref_100
May
1101 29 Oct 29'30% Oct 30 20% Aug 39
Phila Rap Transit pf 50
201 51% Oct 29 51% Oct 29 50
Mar, 51% Oct
Pitts C C di St Louls_100
10,105 Oct 29105 Oct 29 105
Oct 125 June
Vicksb Shrev & Pac__100
Jan
Aug 111
20. 99
Nov 1 99 Nov 1 99
Indus. ac Miscell.
•
Abraham & Straus rights 3,9001 2% Nov 2 3% Oct 29 1% Oct 4
Oct
Alliance Realty
•
Jan 80
50 80 Oct 27 80 Oct 27 53
May
Am La France Pref_100
Nov 2 58
Jan 85% Oct
100 72 Nov 2 72
Am Mach & Fury pref
Jan
(7) ex-warrante
10113 Oct 31 113 Oct 31110% Oct 116
Am Radiator prof __100
Apr
Nov 1 142 Nov 1 141
Oct 152
30 142
Am Wholesale pref_-100
Apr 110% July
20 110 Oct 27110 Oct 27 104
Andes Copper
• 2,400 36% Nov 1 38% Oct 27 36% Nov 38% Oct
Art Metal Constr
10 3,100 27% Nov 2 29% Oct 30 25% Jan 34% Apr
Assoc Dry Gds 1st p1100
100102% Oct 27102% Oct 27 99% Aug 113% Apr
2d preferred
Nov 2.106% Oct 119)4 Jan
100
Nov 2 109
100 109
Atlantic Refining new_2596,000 54% Nov 2 5854 Oct 29 5434 Nov 83% Oct
Brown Shoe e
.100
Jan
Oct 30119 Oct 30 117
Mar 120
0
Bucyrus-Erie pref(7) 100 1,110112% Oct 27113% Oct 30110% Mar i17
Apr
Cent Alloy Steel pref _100
100110% Oct 31 110% Oct 31 107
Jan 111% May
Columbian Carbon rights 5,800 2% Oct 27 2% Oct 29 214 Oct 2% Oct
Colo Fuel d, Iron pref 100
40 133 Oct 30133 Oct 30 127% June 140
Aug
Cons Cigar pref (7)..100
Oct 29 100 Oct 29 98
10 100
Jan 108% June
Crex Carpet
100 200 16
Nov 2 12% Sept 21
Oct 29 17
Sept
Crown-w!Hemet let pf_s
280 99 Oct 29104% Oct 31 96% Jan 105% Oct
Cushman's Sous 14 8%.'
10110% Oct 30110% Oct 30 110
Sept 116% Mar
Detroit Edison rights... 4,900 14% Oct 27 14% Oct 27 14% Oct 16% Oct
Durham Hosiery pref 100
120 36% Oct 27 36% Oct 27 34% Oct 46% Jan
Common
50
Nov 1 5 Nov 1 3
100 5
Aug 8% May
ELsenlohr Bros prof..100
80 93% Nov 1 93% Nov 1 88% Jan 10034 Feb
Elec Auto Lite pref.
00110% Oct 30110% Oct 30 108% Sept 11014 Oct
Elec Pr & Lt ctts 40% pd
40 120% Nov 1121% Oct 30120% Nov 29% Apr
Fairbanks Co
• 100 4% Nov 2 4% Nov 2 2)4 Feb 5 June
Preferred
25
130 734 Oct 29 734 Oct 29 634 Oct 13% Apr
First Nat Pict let pf_100
100 104% Oct 29104% Oct 29104 June 109
Feb
Franklin Simon pref _100
July 110% Oct
2010834 Oct 29 Los% Oct 29 55
Gen Am Tank Car rights 17,100 2% Oct 31 3% Oct 27 2% Oct 434 Oct
General Cable pref
Nov 2105
Nov 1 102
Oct 107
Oct
General Cigar Prof.._100
30
181
10
25
4% Oct 31 125 Oct 31 114% Sept 130
Mar
General Gas & El cl B--• 1 300
,67% Oct 29 75 Oct 29 37
Jan 75
July
Preferred B (7)
• 200 105 Oct 29 107 Oct 29 105
Oct 114% May
Goodyear Tire & Rub rta43,300 6% Oct 27 8% Oct 30 6% Oct 834 Oct
Grant rights
Oct* 27 334 Oct 30 2% Oct 314 Oct
Guantanamo Sug pf_100
40 92 Oct 27 95 Oct 29 90
July 107
Jan
Hackensack Water pL2
10 33 Oct 29 33 Oct 29 25% July 38% June
Hamilton Watch pref 100
80102% Oct 30102% Oct 30 99
Aug 104
Apr
Helme(0 VS, pref....100
120 125 Oct 29 145 Oct 29 121
Jan 145
Oct
Holland Furnace
* 30.600 46% Oct 35 50% Nov 2 46% Oct 1,014 Nov
Industrial Stain
* 2,400 132 Oct 31141% Oct 29 132
Oct 146
Oct
Ingersoll-Rand prof..100
100 125
Oct 29 125
Oct 29 116
Jan 125
Oct
Island Creek Coal preLl
20105% Oct 30105% Oct 30 105 June 107% Mar
Internet Silver pref..l0I
20 120
Oct 27 120 Oct 27 119
Jan
Oct 131
Interstate Dept Stores_ 2,000 61% Nov 2 65
Oct 27 61% Nov 87% Oct
Preferred
200124% Oct 31125% Oct 29 124% Oct 131
Oct
100
Jewel Tea pref
680124% Oct 29124% Oct 29 120
Jan 125
May
Johns-Manville pref.15
370119% Nov 2 120 . Oct 29 11834 Oct 122
Apr
Kaufmann Dept St$12% 2,200 30% Oct 29 32 Oct 30 30% Oct 34
Oct
Kelly-Springf Tire righ 127720 1-16 Nov 1 1% Oct 30 1-16 Nov 1% Oct
Krueger & Toll
60,200 36% Oct 31 37% Oct 27 36
Oct 40% Oct
Kuppenheimer & Co-30 45 Oct 29 46
Oct 27 44% Oct 59
Apr
Lad Gas L St L pref_100
30100% Oct 29100% Oct 29 100
Jan 124% Jan
1
Malian Sugar
10; 23% Oct 31 23% Oct 31 23% Oct 41
Jan
100
Preferred
4001 42% Nov 1 45 Oct 29 42% Nov RS
Jan
Melville Shoe
• 600' 64
Oct 30 65% Oct 29 84
Oct 70
kept
Md Cent Petrol pf.
_100
400112% Oct 27 114
Oct 29 103% Feb 115% May
National Lead of A.-100
140 142
Oct 27 142 Oct 27 139
Jan 147% May
los
Preferred B
80 115% Oct 31 118 Oct 27 15
July 136
Jan
National Supply pf _ _ 100
130 115 Oct 29115% Oct 29 114
Sept119
Jan
Norwalk Tire & R pf _100
201 45
Nov 2 45
Nov 2 3334 Jan
Sept
Pacific Lighting rights__
no, 2% Oct 29 234 Oct 271 234 Oct 48
2% Oct
Pacific Mills
1
420 32 Oct 29 34% Oct 29 25
Oct 34% Oct
Pac Teiep & Teleg pf _100
20 116
Oct 29 116
Oct 29 114
Oct 125% May
Penilk & Ford pref_ _10
20 108 Oct 31 108 Oct 31 103
Oct 115 War
Penne Coal & Coke__ _50
500 9 Oct 31 10 Oct 27 8
Aug 14%
Peoples Gas &Coke Ms_ 14,2001 8% Oct 27 834 Oct 29 7% Oct 9 tia°
Oct
Phillips Jones Corp_ _ _ _*
100' 51% Oct 30 51% Oct 30 38
Ap 54
Aug
Pub Serv El&Gas pf.1 ii
300 107
Oct 30 108
Nov 1 107
Aug 110% Apr
Rand Mines
180 36% Oct 31 36% Oct 31 36% Oct 45
Jan
Rhine Westph El& Pow. 13,800 51% Oct 27 543.4 Oct 31 50
Oc 5434 Oct
Rem Typewriter 2d pf10
20114% Oct 29 114% Oct 29 101
M 124% July
Chalfant
pref.100
Spang
700 97
Oct 31 98% Oct 29 97
Oc 100
Aug
100
Sun Oil prof
100100% Nov. 2104% Oct 29 100
Jan 109% Apr
Tobacco Prod div ctt C.. 200 20% Nov 1 22 Oct 30 20% Sep 23
Aug
ii 2,300 57
Truscon Steel
Oct 31 81% Oct 30 57
Oc 61% Oct
Underw Ell Fish Pt. _100
20 125 Oct 29 125 Oct 29 119
M 126
Apr
S Cast Iron Pipe &
100 200253 Oct 29254 Oct 29236
Foundry ctfs
July 273 June
70012134 Oct 31 122
Pref certificates_ _ _ 10
Oct 31 120
Oct 128
June
Common new
Nov 2 53
Nov 1 49
3,900, 49
Nov 53
Nov
400' 1934 Nov 2 19% Nov 2 19% Nov 19% Nov
lot preferred
preferred
Nov
2
18%
18%
Nov
100,
2d
2 18% Nov 18% Nov
III
200 3% Oct 27 314 Oct 31 3
U S Express
July 6
Jan
• 5,900110% Oct 27 120 Oct 29 86 June 120
US Tobacco
Oct
100
170 136
Oct 27 138
Oct 27 127% Jan 139 June
Preferred
50 5414 Oct 30 80 Oct 29 4534 June 74% Aug
United Dyewood pref 100
Nov
1
81%
•
2,300
59
Coal
Oct
35
Elec
United
58% Oct 67% Oct
10
30 200
Oct 29210
Nov 2 120
Utah Copper
Oct210
Nov
100 25% Oct 27 25% Oct 27 25% Oct 50
Ya Iron. Coal & Coke 100
May
105
Oct 30 47 Oct 31 47
160 47
Preferred
Oc 82% Jan
20 51
Oct 31 51
Oct 31 50
Warren Bros let pf _ _50
Jan 61
Apr
100107% Nov 1107% Nov 1107% Nov 107% Nov
Wesson 011 & S pref
• 4,400 18% Oct 27 20% Oct 3s 18% Oct 2034 Oct
Wilcox Oil & Gas
200 85
Ncv 2 85
Nov 2 85
Yellow Truck pref
Nov 98
Apr
Bank, Trust &
ance Co. Stocks.
Nov 1 410
Nov 1454
110450
Equit Tr Co of N Y_ _100
Jan 599
May
*No par value.
2495
Alliance Why
Amer Surety
Bond & M G
Lawyers Mtge
Rights._ _ _
Lawyers Title
& Guarantee
Bill
75
265
435
342
1912
Ask
Bid
85 Mtge Bond__ 152
275 N Y Title &
445 I Mortgage_ y518
350
Rights ____ 721
20121113 8 Casualty. 390
368
375 I
Ask
Ilia
160 Realty Assoc's
(Bklyn)com 380
525
1st prof...
96
74
2d Prof.... 93
405 Westchester
Title & Tr 725
Ask
400
99
95
_ __.
New York City Banks and Trust Companies.
(AU prices dollars per sears.)
Banks—N.Y. Bid
174
America
Amer Union*. 230
Bronx Bank*. 625
Bryant Park* 275
210
Central
200
Century
Chase
592
Chath Phen
572
Nat Bk &
Chelsea Ruh* 328
925
Chem!cal_ _
Colonial'....1200
Commerce... 650
Continental*. 540
Corn Exch... 720
30
Rights
Fifth Avenue_ 2200
4275
First
450
Garfield
500
Grace
Hanover
1270
Harriman.... 1075
275
Liberty
Manhattan'..9767
Rights
67
National City 878
Park
875
Penn Etch... 185
Ask
178
240
875
325
215
230
597
Banks—N.Y.
Port Morris_
Public
Seaboard _ _ _
Seventh
Bid
670
200
790
250
172
State*
710
Trade*
305
Yorkville_
250
578 Yorktown'... 220
338
940
Brooklyn.
1400 First
575
655 Globe Etch*. 320
580 Mechanic'.. '385
728 Municipal•_ _ 435
3112 Nassau
445
2300 People's
1000
4325 IProepect
150
550
Trust Coa.
1290
New York.
1125 Am Ex Iry Tr 445
285 Bence Coni'le
775
Italians Tr_ 425
72 Bank of N
885
& Trust Co 735
682 Bankers Tn, 948
195 Bronx Co Ti' 415
Ask
725
205
800
260
176
720
325
290
240
625
340
393
445
460
170
448
Tr. Cos-N.Y. Bid
Ask
Central Union 1680 1690
County
625
Empire
447 454
Equitable Tr. 452 454
Farm 1. & Tr_ 785 795
Fidelity Trust 390 405
Fulton
580 620
Guaranty- -- - 556 661
Intl Germanic 215 222
Interstate... 265 272
Lawyers Trust
Manufacturers
New 525 par 230 233
Murray Hill
273 280
Mutual(West
cheater).- - 350 400
N Y Trust_
768 775
Times Square 188 194
Title Cu & Tr 830 860
U Mtge dr Tr 535 550
United States 3200 3275
Westchest'rTr 1000 1100
440
Brooklyn.
Brooklyn..._ 1200 1250
745 Rings Co___ 2600
955 Midwood.___ 270 290
440
*State banks. I New stock. s Ex-dIvi lend.
Ex-stook div. g Ex-rights.
Quotations for U. S. Treas. Ctfs. of Indebtedness, &c.
Maturity.
Dec 15 1928._
Dec 15 1928...
Mar Ily 1929...
Mar. 15 1929___
tune 15 1929...
4 ni
Rate.
334%
4%
314%
314%
414%
I
did.
99"ss
99273,
9917,1
oon.,
100111
Asked.
Maturity,
99"si Sept. 16 1930-32
99773, M tr. 15 1930-32
9$11 :2 D c 15 1130- 32
9077s,Sept. 15 1929
1CO3,
Ins
Rats.
MO.
data.
34% 98
98,si
334% 97"ss 987,1
14°t 97°,1 9841
434% 100"rs 100",1
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock L..xchAnge.—
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. Oct. 27. Oct. 29. Oct. 30. Oct. 31. Nov. 1. Nov. 2
First Liberty Loan
IRish 98ifii 992s:
99",s 997n
992,2
992st
314% bonds of 1923-47._ Low. 982.si 982%, 99,,,
99
992,,
99%,
Close 98",, 992,2
(Mat 3%)
99%, 992,,
992s:
992s:
Total sales In $1.000 units__
20
88
210
169
Si
86
Converted 4% bonds of1Higil
--._
1932.47 (First
Total sales in $1,000 units__ _
Converted 44% bonda{High
of 1932-47 (First 44e) Low_
C1080
Total safes In $1.000 units.
Second converted 44%High
{
bonds of 1932-47(First Low.
Second
Total sales In $1.000
_
Fourth Liberty Loan units_(High
434% bonds of 1933-38._ Low_
Close
(Fourth 447)
Mal sales in $1,000 units_
Treasury
High
I ow_
434e. 1947-62
Close
Total sales In 41.000 units..
H Ugh
46, 1944-1954
SLow.
Close
Total sales in $1.000 units__
High
ElYis. 1946-1956
Low_
Close
Total sales In 51.000 untte--(High
84e. 1943-1947
Low_
Close
Total sales in 51.000 untie..
High
'3%s.1940-1943Low_
iClose
Total sales in 51.000 units
__--___
_-____
__.
1012
- ,3 101isi
101
101
10081,, 101
100",, 100",, 100nis 100%.
101
101
101
101,:s 100"at 1002ln 10021,2 1002%
5
s
3
25 . 3
4
-_-_
____
___
101',,
101 7,2
1012,:
26
____
___
__
_-10877s,
10677n
10677s,
1
____
_-____
---___
-___
____
---____
____
-_-_
____
___
101',,
1017,1
101232
63
112
111142
112
22
108"st
106771,
106"n
109
10377,,
10377,,
10317,1
10
997n
997n
99712
28
9911.2
99
99
66
-__—___
____
____
___
101',,10
-12n
101
- 2n
101
1011ss 1017n
101%: 101ln 1012n
45
50
212
1127,, 112",, 112171,
111"n 112ln 11210s,
1127,1 11271,1 112",,
15
160
12
-__ 1070n 107"n
---- 106",: 107"n
_.__ 107,21, 107"n
____
476
50
---- 101",, 104"s:
10417,2
--- 104
--- 104"rs 104"11
-___
120
25
997n
9917s
9977n
997n
9915n 9917ss
997n
9915n 991782
29
15
5
997,1
99121
---992r,
---992st
99",
____
997n
1
205
____
___.
__.
1012n
1017,,
10123:
41
112",.
112"r
1121h:
11
107,
107
107
68;
99"r
991.3.
104ior
It
9917r
99,
9917,
21
99".
99",
9917,
11(
Note.—The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
43 4th 434s
1007n to 1017:,
Foreign Exchange.—
To-day's (Friday's) actual rates for sterling exchange were 4.84 7-16(
4.84 9-16 for checks and 4.84 13-16 ©4.84% for cables. Commercial on
banks, sights, 4.841.1044.84 9i; sixty days. 4.809-16(584.80 13-16; ninet:,
days,4.78 21-32(4)4.78%; and documents for payment,4.80 5-16(584.80 9-16
Cotton for payment, 4.83%. and grain for payment, 4.83%.
To-day's (Friday's) actual rates for Paris bankers' franca were 3.90 7-16
(43.9034 for short. Amsterdam bankers' guilders were 40.07(4)40.0)1
for short.
Exchange at Paris on London, 124.10 francs; week's range, 124.14
francs high, and 124.10 francs low. The range for foreign exchange for
the week follows:
Sterling. Actual—
Checks.
Cables.
High for the week
4.844
4.84 31-32
Low for the week
4.84 7-16
4.84 13-16
Paris Bankers' Francs—
High for the week
3.903
3.90 11-16
Low for the week
3.90 §-16
3.9034
Amsterdam Bankers' Guilders—
High for the week
40.09
40.11
Low for the week
40.0634
40.083..
Germany Bankers' Mark.—
High for the week
23.8234
23.83
Low for the week
23.79%
23.81%
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 preceding page
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
Oct. 27.
Monday,
Oct. 29.
Tuesday,1 Wednesday,i Thursday,
Oct. 30. 1 Oct. 31.
Nov. 1.
Frtdall,
Nov. 2.
Sales
for
the
Week.
Lowest
Railroads,
Shares
Par
13,500 Atoll Topeka & Santa Fe...100
2,600 Preferred
100
1,400 Atlantic Coast Line RR._.100
19,300 Baltimore & Ohio
100
600 Preferred
1 0
1,100 Bangor & Aroostook
50
100 Preferred
100
Boston & Maine
100
9,600 Bklyn-Nianh 'Fran v t c_No par
1,100 Preferred v t c
No par
14,400 Brunswick Term & Ry Sea_100
76,400 Canadian Pacific
100
10,800 Chesapeake & Ohio
100
2,300 Chicago & Alton
100
9,200 Preferred
100
Chic & East Illinois RR
100
400 Preferrea
100
3,200 Chicago Great Western.. 100
10,900 Preferred
100
10,500 Chicago Milw St Paul & Pao__
17,200 Preferred new
17,500 Chicago dr North Western.100
100 Preferred
100
11.500 Chicago Rock fel & FR0160_100
500 7% preferred
100
900 8% preferred
100
300 Colorado & Southern
100
50 First preferred
100
210 Second preferred
100
10,500 Consol RR of Cuba pref
100
5,600 Delaware & Hudson
100
3,900 Delaware Lack & Western_100
1,100 Deny & Rio Or West pref_ _100
300 Duluth So Shore & Atl
100
100 Preferred
100
65,900 Erie
100
6,100 First preferred
100
200 Second preferred.
100
5,000 Great Northern preferred_ _100
2,900 Pref certificates
100
57,800 Iron Ore Properties_ _No pa*
3,600 Gulf Mobile & Northern
100
500 Preferred
100
7.100 Hudson & Manhattan
100
100 Preferred
100
6,700 Illinois Central
100
200 Preferred
100
2,600 Interboro Rapid Tran v t 0.100
1,100 Int Rys of Cent Amerlea._10(
330 Preferred
100
14.900 Kansas City Southern...100
300 Preferred
100
2,600 Lehigh Valley
50
500 Louisville& Nashville
100
50 Manhattan Elevated guar_100
2,600 Modified guaranty
100
Market Street Railway ___100
200 Prior preferred__.
_ _ _100
400 Minneapolis & St Louis...100
200 Minn St Paul & 88 Marle_100
500 Preferred
100
30 Leased lines
100
61,400 Mo-Kan-Tex RR
No par
5,300 Preferred
100
30,800 Missouri Pacific
100
10.700 Preferred
100
1,000 Nat Rys of Mexico 2d pref_100
25,600 New York Central
100
2,400 N Y Chic & St Louis Co.. 100
100
108 108 *108 109 I 1,5001 Preferred
1,270 N Y & Harlem
50
290 303
301 315
100
6514 6718 6534 6673 72,200 N Y N II & Hartford
11212 1127* 11214 11214 1.600 Preferred
4,000 NY Ontario & Western...100
28
2534 2612 26
No par
600 NY Railways pre!
618 734
*734 9
500 Norfolk Southern
100
40
40 .36
40
100
18234 18234 4,000 Norfolk & Western
18034 183
Preferred
100
90
4185
90
.85
100
10,100 Northern Pacific
9938 10058 9953 100
100
2,400 Certificates
9934 9934 9638 07
Pacific
Coast
100
2512
300
*2414
2534 2534
50
6412 16,400 Pennsylvania
64
6438 64
100
*28
30
300 Peoria & Eastern
*2712 313
100
133 13414 133% 13412 4,000 Pere Marquette
Ills)
96
300 Prior preferred
*96
9712 96
100
*92
94
200 Preferred
*93
94
5,900 Plttaburgh & West Va...- 100
153 15634 15212 154
50
10214 103
8,700 Reading
10134 103
100 First preferred
50
4112 4112 *4112 4134
50
*4712 48
400 Second preferred
48
48
86
Rutland RR pref..... ____100
*60
66
*60
11514 11714 11518 111378 7,000 St Louis-San Francisco.....100
96
1,700 1st pref pald
100
9638 9638 96
117 12014 11712 12012 44,600 St Louis Southweertern.....100
400 Preferred
90
90
100
*9012 91
1838 4,700 Seaboard Air Line
100
1734 1734 18
21
2153
800 Preferred
100
2134 22
12112 12234 11,800 Southern Pacific Co
100
12112 123
100
14438 14512 14412 14514 9,900 Southern Railway
600 Preferred
100
9878 9878 9712 9712
430 Mobile & Ohio certlfs....100
126 .126
12638 128
1,100 Texas & Pacific
WO
184 186 P181 185
34
200 Third Avenue
*33
100
35
532
800 Twin City Rapid Transit..100
3812 3812 3913 3913
230 Preferred
9612
96
100
95
95
34,300 Union Pacific
100
20214 20912 20612 209
83
1.200 Preferred
100
83 • 83
83
3.700 Wabash
78
100
7714 7814 *76
94
200 Preferred A
*92
100
94
*92
93
Preferred 13
*90
100
94
*90
4034 41% 16,900 Western Maryland
100
4034 427
42
300 Second preferred
*39
10f1
44
*38
3053 305* 1,000 Western Pacific
100
*3014 31
1.000 Preferred
*5534 57
100
56
53
per share $ per share $ per share S per share
per share
$ per share
19078 19178 19118 19278 1905* 19234 18912 19078 18912 19112 190 19112
104 10413 104 104
104 104
104 104
104 104
104 104
16315 164
16318 164
16312 163% 16312 164
16318 16312 165 165
112 11334 11112 11212 111 112
11112 112
11034 11278 111% 112%
78
*78
*78
79
78
784 * 78
79
*7814 7934 7812 79
1068
68-2 8834 89
6914 6812 6873 6814 7014
6912 *6812 70
11034 11034 *11012 112
11012 11012 11012 11012 112 11212
*11012 112
*7113 7243 *71
74
*7013 72
*7012 . 73
73
•70
73
*71
65
65
6518 6738 6814 6678 8512 6638 6534 6633 6018 6638
*8812 8914 *8812 893s *8812 8914 8812 8812
108918 8914 8812 89
SO
3438
3912 3634 3934 3814 373. 35
3634 29
38
333
219 22212 218 22278 217 22014 21814 22134 21814 221
21818 217
18712 183
185 18514 185 18814 188 18934 186 18814 18134 188
10% 1058
1034 1034 1034 1133 1053 1034 105* 1017 1073 11
1612 1678 163s 1753 1653 1733 1012 1612 1672 1753 1718 1713
42
*40
*40
43
*40
42
*40
42
*40
43
*40
42
61
82
*58
62
*57
60
*58
61
58
5812 *59
*58
13
1338 13
12% 1313 13
1312 13
13
1234 1314 13
31.2 3258 3134 3314 315* 3214 3033 3112 3034 3134 3118 3112
331 3353 3318 3334 3314 3312
3312 34% 3334 345* 3312 34
5012 4912 50
49% 5014 4934 5034 4912 5033 4812 4953 49
8613 8733 8534 8634 8512 8612 86
8712 8634 8712
86
87
140 140 *139 140 *139 140
41110 141 .140 141 *140 141
130 13314 13134 13214
132 13312 13212 13513 131 133 , 130% 132
10714 10714 10714 10738 10734 10734 *10713 10814 10814 10814 *108 10812
101 101
101 101
•101 10112 101 10118 1005* 10058 *1005 101
110 11012 110 110 *10713 11013 *1071y 110 *10712 115 *10712 112
78
771 *77
.77
77
7712 77
*75
SO
*75
7712 *76
7212, 72
*7212 75
*7212 75 I 72
7212 7138 7158 6912 71
7512 77
75
77
78731 7634 77
7778 7712 79
76
76
18634 190 *18712 190
18514 18514 186 19212 189 1921e 18513 189
128 128
12812 12834 12914 129141 12714 128341 128 12813 127 128
56
56%
*55
56
56
*55
56
57
56
56
57
*56
*313 4
312 312 •312 4
*312 334 *312 4
*312 4
553 533
7
*512 7
•533 612
7
*6
*6
*6
7
5558 5714 5534 5634
5534 587.2 5638 5812 5634 584, 5512 57
58
58% 5734 5853 5734 5818 58
5814 5853 58
5738 58
*5334 5434 *5512 5573 558 5578 *5312 5534 *5312 557 *5312 5512
10018 10038
10014 101
10012 10178 100 100
10012 10012 10012 102
9334 9712 9812
9734 9734 9812 9812 9812 9813 9753 973* • 98
27% 2978 2912 3034 2812 2912
28
2873 2734 2812 2714 28
49
41312 4734 47
•46
47
4818 46
48
46% 47
47
100 100 *100 102
100 100
100 101
*99 100 .99 100
5312 5138
537 54
5414 558 5334 54
5314 53% 5314 557
84'8 8418
*84
86
*84
86
86
*8412 8512 *8412 8512 *84
139 13914
13934 1404 13812 140
139% 14212 140 14114 14034 141
14012 14112 *138 145 '•138 143 *135 143 *137 145 ,*137 145
403s 3814 3834 3818 3978 *3812 40
38
39 , 403* 4012 39
*4512 46
46
46
46
4712 *46
4712 46
4738 47% *46
8018 8018 8012 81
80
80
8012 80
*80
8012
6818 68%
6734 6733 69
6912 66
6934 6913 7038 67
69
7012 70 .70
71
*70
7012 *70
*70
70
70
71
*70
9578
9712 95
93
9334 95
9353 96
9818 9078 *9634 98
13038 13933
141 141 *14012 141
140 14012 140 140
*14012 141
87
86
90
87
87
90
*86
90
87
90
*86
*86
45
4714
47
45
45% 4612 4412 4514 45
*46
47
45
*312 5
*312 5
*4
5
*312 4
*4
5
*312 5
*4134 45
45
*43
47
4612 4612 *4112 47
*4612 4712 *46
2
234
234 234
*253 234 *253 273 ,,,258 234 *258 234
42
4278 4278 *42
*42
43
43
43
*42
44
*42,2 44
*74
79
75
80
75
*73
80
7612 7612 *73
*7613 80
63
6312
*6312 84
*6312 84
64
*6312 64
*6312 64
*62
4313 4453 438 4513 447 4613
44
455
4478 45% 458 46
1035
8 10334
8
1037
8
1033
10312
10418
10414
104%
104
104
104
1044
5933
6978 6718 6938 68
7034 67
7013 71% 704 7134 69
11918 12134 121 123141
12213 123% 12212 12418 11912 123% 120 121
•234 3
*234 273 *234 3
a24
27**2 2 3
*234 3%
171 17438 172 17434 173 17414
17314 17414 174 1765* 17312 175
125 12514 12414 12518112514 1254 12412 12412
124% 12412 12438 125
108 108
*265 270
6414 64%
•11214 113
*2614 27
3713 9
40
40
18113 182
90
.85
10014 10073
96
97%
26
26
6453 65
32
. *28
13113 134
*96
9853
94
*92
15112 15112
10114 10114
*4122 42
*4712 48
66
*60
11534 11678
1612 9634
11814 12238
9012 9012
1734 1834
2134 2134
12058 121
14413 14412
•
1 9873 99%
131 131
18114 18114
3213 3438
38
38
•____ 95
20173 20173
*8314 8312
77
76
92
92
•90
94
40% 4213
*41
43
31
32%
5514 5514
10734 10734
270 275
6414 66
112% 11212
2613 2634
*734 9
40
41
182 18273
*85
90
100 10238
97% 9734
26
26
6453 6514
31
*29
135 135
98
98
94
94
153 15712
102% 103
*41% 42
*4712 48
66
*80
116 11678
10814 10812 10758 10738
272 313 305 335
65
64% 6614
64
112.2 11234 11278 11278
26
261
2534 26
*73. 9% *734 9
41
*40
4134 *40
182 18333 181 182
*85
90
*85
90
10012 10134 99 100%
96% 96% 9612 97
*24 • 27
*2518 26
6434 6513 6453 65
32
28
28
*28
13312 13312 13212 133%
9734 96
96
*96
94
*92
94
94
152 153 *15234 153
10214 10312 102 10212
*4112 41% *4112 4134
4812 *4713 50
48
66
66
*60
*60
115 1167s 11412 11573
9612 9653
12014 12234
91
91
1753 1814
*2134 2212
12112 122
145 145
*9873 9934
128 128
187 187
34
*32
*36
38
95
95
20312 204
8312 8313
78% 7912
*92
96
94
*90
4212 4418
*40 • 45
3212 3234
56
66
96
9634
119 121
*9012 91
18
18
22
*21
12134 12234
143% 144%
*1878 9934
12712 128
183 184
*32
36
37
37
94% 95
20314 206
*8318 8312
7714 79
92
92
*90
94
42
4313
41
41
*3112 3233
55
56
• Mtn and anicrO once
..jee
9612 961.3
116 11878
91
91
1734 18
22
*21
121 1223s
143% 14678
*9873 99
127 128
180 185
36
*32
3634 37
95
20112 204
83
83
*7512 78
94
•92
*90
94
4012 424
40%
*38
3112 3112
5514 5514
PER SHARE
Range Sines /On. 1
On basis of 100-chars loll
STOCKS
NEW YORK STOCK
EXCHANGE
11116 day. J Ki-olvidtaal
0 8:2-rilvidend and ex-rignsa
kr 1112•Huto
$ per share
18238 Mar 2
10211 Jan 5
15718 Oct 5
10334June 10
78 Aug 6
61 June 12
110 July 7
58 Feb 18
533s Jan 17
82 Jan 4
1412 Jan 5
19512June 19
17512June 19
833 Jan 30
778 Feb 20
37 Feb 28
58 Ault 15
91s Feb 8
2012 Feb 20
2214 Mar 5
37 Mar 2
78 June 19
137 Sept 5
106 Feb 18
10614 Feb 9
100 Feb 24
105 Aug 15
67 July 3
6912 Nov 2
69 Apr 12
16314 Feb 10
127 Nov 1
5018 Feb 20
8 Atilt 3
438June 19
4834June 19
50 June 18
4914June 20
9312 Feb 6
911s Feb 7
1914June 12
43 Aug 6
99 Aug 16
51 Jan 3
81 Oct 8
13134 Jan11
13018 Jan 1
29 Jan
384 Mar 16
6974 Jan
43 June 13
6612 Aug 10
44 Feb 20
13938 Nov 2
76 Jan 9
40 Jan 10
4 Oct 10
4114 Oct 17
178May 23
40 June 21
76 Feb 7
8112Sept 28
3012June 13
10112.1une 12
4172 Feb 7
105 Feb 20
2 Feb 17
158 Feb 1
1214 Oct 10
10412 Aug 24
168 Jan 3
6432June 19
112 Sept 17
24 Feb 20
514 Jan 24
32 June 12
176 June 19
7912 Apr 28
9282 Feb 7
90% Feb 20
1912May 14
614.7une 19
25 Mar 12
12412 Feb. 9
96 Oct 31
93% Oct 24
1214 Feb 20
9414 Feb. 7
4112 Nov 1
44 Jan 26
60 Feb 21
109 Feb 7
9482 Oct 10
674 Feb 8
89 July 14
Ills Mar 8
17 Aug 4
1174 Feb 7
18912 Feb 8
9682Sept 25
100 Jan 13
994 Jan 3
284 Jan 10
3214Sent 5
9458 Oct 30
1861t Feb 6
8218 Oct 3
61 Feb 18
8812 Feb 7
87 Feb 4
8184 Feb 8
1124 Fon R
2814 Feb 7
6212 Aug 15
Highest
PER SHARI
Bono.for Norio*.
Year 1927
Lewis
RION
$ per share 8 per shore $ DAY III,,
19718 Apr 27 16114 Jan 200 An
10811 Apr 9
21PS Jan 10884 De,
19112Ma7 7 1754 Apr 2054 Ant
Or
1197* Apr 12 10612 Jan 125
85 Apr 4
7314 Jan 83 Jun
44
Jan 1031.r Mal
8414 Jan 11
11534114aY 31 1014 Jan 122 Jun
83 May 10
53 Aug
7734MaY 3
78% Oct 88 /at
95'5,MaY 3
4778Sept 4
74 Oct 1982 De,
22334May 8
20514 Jan 6 151'i Jan 2l8'j 00
Jan 1082 Jun.
1834May 2
2638MaY 2
712 Jan 1882 July
8012 Jan 51 Jul,
4814MaY 10
76532,1ay 4
43 Jan 844 Om
1638May 2
812 Jan 2212 Ma:
3613Sept 26
4478 Jun'
4012 Apr 26
9 Jan 1934 Del
3711 De.
5612Sept 4
9414May 1
7882 Jan 9711 sem
150 May 2 12414 Jan 1so
t
6818 Jan 116 July
13634 Oct 24
11115May 31 1024 Jan 11184 Del
9514 Jan 106 Nov
106 May 31
126 May 3
84 Jan 18784 July
85 Apr 10
Jan 78 Dee
70
85 May 9
68
Jan 75 001
8738.1une 1
85 Aug 77 May
226 Apr 26 17112 Jan 230 Jane
150 Apr 9 1304 Oct 178 Mat
6534 AM 28
814 Jan 6784June
634 Jan 5
24 Apr
Vs Dec
912May 2
4 Mar 1114 Dec
6612 Jan 4
894 Jan 694 Sept
637s Jan 7
524 Jan 8614 Aug
62 Jan 6
Jan 844 Aug
89
109 May 14
7982 Jan Ion, sew
10534May 15
854 Mar 101 Beni
3338 Oct 23
18 July 284 Sept
6178May 10
354 Jan 7882 July
109 May 1 105
Jan 11214 Apr
7312 Apr 24
4012 Jan 6572 May
9212 Apr 28
Jan 0011rMaY
78
14884May 9 12112 Jan 139% 005
147 May 15 12072 Jan 140 008
82 May 3
804 Aug 6218 VOI)
51 June 16
23 Apr 4212 Oct
82 May 2
62 Apr 744 Oct
75 Oct 18
6114 Jan 7012 July
77 Apr 20
844 Jan 7813 Het
116 Apr 28
884 Oct 1374 Juns
1591:May 10 12882 Jan 1591, 001
98 May 4
7814 Dec 90 Feb
64 May 2
4114 Dec 5478 Feb
712May 15
871 Juno
Ms Nov
6414May 4
4114 Fen 5934 Aug
612May 2
14 Jan
478 Feb
6282 Jan 8
27
Jan 5612 Dec
8784May 16
60 Apt 884 Dec
714 Jan it
6814 Mat 71 NO2
474 Oct 23
3112 Jan 5612Juni
109 Feb 8
9584 Jan 1094 Dec
7814Sept 17
874 Jan 82 Ate
126 Oct 25
9014 Jan 11882 Nov
512 Apr 26
112 Axle
312 001
19112May 10 13714 Jae 1714 Oet
148 May 11 11110 June 2444 May
110 Jan 41 102 Mar 110 Dee
505 Apr 28 167 Dec 185 Age
884May 2
414 Jan 6814 Des
117 May 8 11082 Oct 1144 Not
89 May 2
2814 Jan
41.4 801A
13 May 3
das Dec 1524 Jan
4912 Jan 11
3718 Jan 641 June
197 May 9 158
Jan • 202 Nov
90 June 12
83 June 90 July
1051:May 15
78
Jan 10212 Dee
1014May 18
84 July 994 Dee
344May 26
1514 Feb 3184 Dec
7211 Apr 27
5884 Jan 68
Ohl
87 May 1
20
Jan
AIM July
146 Apr 11 1144 Jan 1404 May
10184 Mar 28
98
Jan 9914 Dec
10084
30
8984 Jan 974 Do
163 Oct 9 12212 Jan 174 May
1193sMay 10
94
Jan 1234 June
46 Apr 9
504 Jan 484 Dee
597sMay 1
4814 Jan 60 Feb
7214May 18
48
Jan On May
122 Mar 23 10014 Jan 1174 Juni
101 May 21
12234 Oct 29
61
Jan 98 June
95 Jan 3
7873 Jan 9434 Dec
304 Jan 3
2818 Mar 414 Feb
38 Jan 8
8211 Apr 45% July
13114May 0 10614 Jan 1267
, Dec
165 May 7 119
Jan 149 Dec
10214 Jan 17
96 Mar 1011s Dec
15912 Jan 20
80 July 115 Dec
19458 Oct 23
5372 Jan 101171 Nov
4618May 3
2834 Aug 41 Feb
66 May 8
45 Nov 6514 Feb
107 Feb 10
Apr 106 May
99
20912Nov 1 15912 Jan 19734 Dec
8714 Jan 20
77 Mar 854 Dec
9614May 11
404 Jan 81 June
Jar' 101 June
102 May 18
76
88
Jan 98 June
9912May 18
1314 Jan 674 June
isahm ay 10
Jan 0714 June
23
5474May 10
254 Apr 474 June
3712 Jan 18
65 Apr 7684 Feb
6212 Jan 6
as,
mar
Atz-dly. oil's* the shares of Chesapeake Corp. stook
New
2497
York Stock Record-Continued--age 2
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.
Oct. 27.
Tuesday,
Monday,
Wednesday, Thursday,
Oct. 29. 1 Oct. 30. 1 0c1. 31. I Not. I. '
Friday,
Nov. 2.
STOCKS
NEW YORK STOCK
EXCHANGE
Sales
for
the
Week.
3 per share S per share $ per share $ per share $ per share $ per share Shares
Industrial & Miscellaneous.
I
I
37
4034 3814 3934, 374 3812 3614 38
19,000 Abitibi Pow & Pap
3912 42
No Par
8435, 81
8312 76
85
8574 84
100
854 86
8012 3,200 Preferred
1
4 2,5001 Abraharn & Straus____No par
110 11012 11012 11112 *108 112/
112 11412 110 112
110 Preferred
110 110 *109 110 *109 110 ,*109 110 *109 110
100
330 354 I 34114 353 1 342 349
32512 326
6,500 Adams Express
100
320 330
49 1 50
52 I 4612 484 47
5112 544 50
100
5312 15,600 Advance RumelY
5,100 Preferred
57
5934 57
6212 5934 61
100
61
5934' 6012 61
314 314
314 34
34 312
3.2 334
1
34 312 7,400 Ahumacla Lead
8274 7934 81 I 7914 80
No par
14,200 Air Reduction, Inc
8034 8134 7934 8114 79
811 834
812 834
812 84
812 873 7,800IAJax Rubber, Inc
812 834
No par
7
734
74 8
7
714'
74 734
7
7/
1
4 34,400 Alaska Juneau Gold Mtn__ 10
27
2712 27
2734 • 2714 2714 3.200 Albany Pert Wrap Pap_No par
2812 2714 28
28
22434 228
22812 2314 113,2001 Allied Chemical & Dye_No par
22814 23112 22412 22814 222 225
12212
122 12214 *12214 12212 *12214 12212 12212
122 122
WO
4001 Preferred
13014 13134 130 130
4.900 Allis-Chalmers Mfg
12934 13078 13034 13034' 12912 1301
100
1034 *10
1012 10
1012 *1014 1034 *1014 101
10
1,200 Amalgamated Leather_No par
*71
75 ' 7014 7014 •71
*71
75
75
75
*71
200 Preferred
3184 32
3112 3212 3212 35121 58.200 Amerada Corp
3112 32
No par
3184 3313 3184 32
1814 184
1814 1814 181s
1812 1818 2,700 Amer Agricultural Chem_ A00
1814 1838 183a 1834 18
*8712 68
6714 6714 6618 67
6514 6612 6614 6614 6612 67
100
1,700 Preferred
133 13512 130 134
13212 13212 13212 13412 4,100 Amer Bank Note
13012 135
13334 136
10
6012 60
6012 6012 6012
*6014 6012 6012 6012 6012 6012 60
50
400 Preferred
19
191 •1812 1912 *19
•1714 1912 *17
1978 19
1834 19
700 American Beet Sugar__No par
*50
58
*50
58
*50
58 I *50
55
*50
58
57
100 Preferred
58
100
1
4 364 38
1
4 38/
35
3614 3512 3734 341
/
4 3614 13,100 Amer Bosch Magneto__ o par
3612 3674 36/
4114 4084 41
*41
4038 4114 4034 4184 4084 4112 41
4114 3,800 Am Brake Shoe & F____No par
*120 124 *120 124 *120 124 *120 124 *120 12014 *120 124
. Preferred
100
1414 14
1434 1314 1334 134 1434
14 1 14
14
1334 1414 5,100 Amer Brown Booed ELNo par
49
49 1 *49
4834 49
50 •49
*4812 51
50
49
80 Preferred
100
5114
1083
1073
x1043
4
4 10734 10514 108
4 10714 10914
1
4
1074 108/
107 1084 140,900 American Can
25
14134 14134 *141 14134 141 141
142 142 *14114 142
141 141
700 Preferred
100
*6014 0012 90
9014 90
9274 91
9214 9274 4,600 American Car & Fdy__No par
92
9114 93
•11512 118 ,*1154 118
11512 11512 *11512 118
118 118
118 11874
100
500 Preferred
90 , 91
9818 90
94
•87
9514 *87
*88 100 1 *90
93
300 American Chain [wet
100
9212 9214 9213 9134 9212 9134 93
9214 93
91
9312 9514 9.400 American Chicle
No par
•10814 110 1 110 110 *110 112 1 108 108 *109 111 *109 111
No par
290 Prlor preferred
1134 1214
1212 12
1134 1212 12
1112 11112 1184 12
1212 41,700 Amer Druggists Syndicate_ _10
7112 711271
71
71
71
71 1 71
72
72
*71
72
500 Amer Encaustic Tiling_No pa
245 245 243 243
245 254
240 240
255 280
253 287
100
7,700 American Express
474 454 4614 4574 4634 47
4612 4714 4212 4812 46
474 17.800 Amer az For'n Power_ _No pa
107
1
10612
*10612
*10634
10712
107
*107
107
10712 10712 1074
107
No pa
500 Preferred
96 I 9512 9512 9512 96
9512 9518 96
96
96
96
No pa
2,600 2d preferred
96
912 *9
94 *9
912
*9
912 *9
9
9
*812 9
1,300 American Hide & Leather_100
38 , *36
38 I 3412 344 31
*38
3312 3135 3214 2.400 Preferred
*364 38
100
7514 7738 8,800 Amer Home Products__No pa
*7514 7612 7414 75121 7412 751
7412 75
76
78
40
3935 4040 40
4212 4112 4314 18,100 American Ice
417* 41
2 41
No pa
96 I *94
9534 9534 94,2 95 I *94
9512 *9412 96
*94
96
100
•
400 Preferred
120 12212 11712 12012 11712 121
118 121
12012 12274 12014 12514 76,900 Amer Internal Corp
No pa
814 814
84 84
8
812
734 84
74 8
6,200 Amer La France & Foamite.1
774 8
127 12934 128 12934 128 128
126 126
12674 12674 *12512 128
1,200 American Linseed
100
*140 -_ *140 149 , 150 150 *140 155 *140
____ 141 141
3501 Preferred
100
*9218 92'2 924 9212 93
9734 94
9633 95
9612 *94
95
71,600 American Locomotive_No Pa
112 112 *110 112 *108 110 *108 112 *108 111
*110 112
100
300 Preferred
171 172 I 168 170 I 167 167
172 172
167 167
171 1733
1,900 1 Amer Machine & Fdy__No pa
501
51
5038 50% 50
4934 51
50
4955 5014 50
50
5,500 Amer Metal Co Ltd ___No pa
5111 1121 *111 11212 11212 11212 *112 113 8112 113 *112 113
100
100 Preferred (6%)
*1318 1438 *1318 14, *1314 14
*1314 15
*13
14
*13
par
a
14
No 100
American Piano
494 •4814 4912 4814 4814 46
49
'49
*49
50
47
4512 45
320i Preferred
8413 85 I 8414 85 , 84
8378 841
8474 8484 86
85/
1
4 8635 14.000 Am Power & LIght____No pa
1024 1321 102 102 I 102 2 10212 10238 1023s 10134 10214 102 102
No par
1,600 Preferred
15634 15714 157 159 I 159 162
161 170I 17312 176
1714 175
25
49,800 American Radiator
*120 124 *11912 120 , 120 12014 1194 120
121 12114
120 124
1,200 Amer Railway Express----100
7012 7184 714 7314 695s 72
6714 6914 6914 7374 70
7234 13,900 American Republics-NO Par
6712 6784 6714 68 I 6914 70
6812 7312 7212 73781 72
73
26,400 American Safety Rasor_No par
284 284 2818 281227% 28
2734 28 1 2784 284 28
No par
28
6,000 Amer Seating v 16
44 414
4
414
4
4
*4
412'
4
4 1
4
4
1,600 Amer Ship & Comm-No par
*83
85
*83
85
83
83
81
81 I 83
83
*83
85
150 American Shipbuildlng--100
26813 27214 272 27534 266 27234 2644 27114 26712 27038 26484 268
36,200 Am,Smelting & Refining- _100
137 137
13714 1373* 137 137
137 137 I 138 138 ;x13614 13614
100
800 Preferrcd
*16713 169 *1674 169 4I 168 169
16814 16814 168 16814' 16814 1681
100
1,100 American Snuff
105 105 *10134 1043 100 100 *100% 10512 *10012 11174 •11012 112
100
100 Preferred
5514 5524 554 56
5574 5712 5514 67 1 5612 5835 5614 5734 16,400 Amer Steel Foundries...NO Par
11134 11114 11134 111% 11134 11111 11034 112 *11012 112
*11134 112
100
200 Preferred
73
73
74
73
73
7334 72
72 I 7274 7374 7274 744 2,900 Amer Sugar RefInfilg
100
*106 107 *10614 10634 *106 107
1064 106141 1064 107 *10534 10812
100
800 Preferred
*60
6013 601g 6033 60
60
5934 60 I z58
No par
5814 5812 581
3.200 Am Sum Tob
*18
21
*18
21
*18
21
*18
21
*18
21
*18
Amer Telegraph & Cable--100
21
17933 179% 17913 18513 18314 188
182 1837s 1824 183
100
18134 18514 52,600 Amer Telep & Teleg
169 16934 170 17034 16814 169
168 169 I 17012 171
16813 1694 3,700 American Tobacco com----50
1674 16812 1698 17034 16814 171
188 170 I 17014 172
50
17113 17713 7.000 Common class B
117 117
11634 117
117 117
117 117 *117 11733 11714 117% 3,600 Preferred
100
12614 12712 12714 129
127 127
12813 13712 13734 14112 137 13834 14,800 American Type Founders..100
110 11114 110 110
110 111
100
260 Preferred
11138 111% *11014 11112 112 112
59
5914 59
594 59
No par
5914 5734 58 I x57$4 5934 ,,5884 5912 8.700 Am Wat Wks & El
100 100
*9934 100
*99 100
100 100
*9978 100
*997 100
200 let preferred
1812 2074 21
2434 2174 25
2214 2312 2212 2274 2112 221
100
/
4 48,400 American Woolen
48
5212 524 5735 534 5634 5214 54 I 534 5474 523s 5335 46,300 Preferred
100
1514 1514 16
1634 *15
16% *14
1512 *14
158 •14
1512
800 Am Writing Paper cits.No pa,
*45
48
48
4812 48
48
48
47
*46
47 1 *46
48
700 Preferred certifi•ste._ _100
4214 43/
1
4 45
4812 454 4934 44
4674 45
48141 45
454 19,000 Amer Zinc, Lead & Smelt _25
*100 101
108 10674 106 107
101 10474 10374 10374 1014 1011
/
4 2,400 Preferred
25
8914 871s 8914 8763 897 1 88% 9014 8814 8938 340.000 Anaconda Copper Mining_ _50
8734 8812 88
9414 9515 9414 98
94
9534 93
9312 95
9312 95
95
10,100 Archer, Dan'Is. MidI'd_No paf
112 11312 1134 113.2 11312 11312 11312 11312 11312 11312 1134 11312
100
400; Preferred
9214 92
*92
92
*9112 92
9111 914 911
/
4 9214 9112 9134 1,1001 Armour & Co (Del) Pref-100
17
173s 17
1734 1713 1733 1634 1733 16% 17
161s 1833 37,000 Armour of Illinois class A___25
8
78
838 872
838 834
814 81
4 83s
7
84
814 8% 31,900 Class B
28
*84
86
8312 8312 *84
87
8414 8434 8434 85
8338 84
3,600 Preferred
100
, 4012 4078 4118 424 4014 4212 4014 414 4012 41
4014 4012 12,800 Arnold Constable Corp_No par
3
33
33
*30
*30
31
31
*30
33
*3112 34
*3113 34No
100 Artloom Corp
par
•10612 109 *10612 109 *10612 109 *106 2 109 *10434 109 *10612 109
I Preferred
100
474 484 49
5174 514 53
5014 5214 5074 5112 50
5074 65,800 Assoc Dry Goods
No pat
48
48
481a 4813 47
47
47
47
*47
48
47
47
140 Associated Oil
26
49
49
50
49
494 5014 49% 5138 4914 4934 4912 494 7,500 AU G & W 1 58 Line__No par
574 5814 5812 603* 5974 6074 60
6514 624 624 62
634 25,300 Preferred
100
220 228
228 233% 222 23134 220 226
22112 225
21712 223
35,300 Atlantic Refining
100
*11514 11512 11514 11513 11513 116
118 116 *11512 1157 11514 1154
250 Preferred
100
8114 8114 81
81
*8114 84
8014 8014 8018 82
82
82
800 Atlas Powder
No par
103 103
102.240212 10212 10212 10314 105 *1044 10512
103 103
140 Preferred
100
1113 11% 1112 1234 1212 124 1212 124 1212 124 •12/
1
4 1275 1,200 Atlas Tack
No Pa
6% 612
612 612
614 614
618 gig
634 6%
6
6
900 Austin,Nichols&Co
NO
Pa
32
32
*31
*31
34
*31
34
35
•32
34
*32
34
1001 Preferred non-voting_--100
58
60
•60
5834 5834 59
62
59
*59
6014 *593 61
800"Austrian Credit Anlitalt
1212 1374 1134 134 *12
1013 10% 1114 13
1212 12% 13
5,7001Autosales Corp '
No par
3312 33% 34
35
35
3534 35
35
35
35
3412 3434 1,3001 Preferred
50
4612 4512 4512 4514 46
4638 4612 46
*45
46
45
45
2,800!Autostr Sat Reser "A".No par
*236 265 *236 265 *236 265 *23634 265 .23334 285 *234 265
Baldwin Locomotive Wks_100
11612 11612 118 118 *11612 118
11612 118 *11634 118
11634 11734
2401 Preferred
100
10934 10934 109 109
1094 10934 109 109
109 109
10914 10914
200.Bamberger (L)& Co pref 100
2912 2012 *2012 3012 291 2934 2912 2912 *2912 30 .12938 293
700 Barker Brothers
No par
28
304
293 32
*2514 2834 2512 2912
33
467
3573 467 40,100.Barnett Leather
No pat
1
4 4435 4012 4274 4174 4338 427 437 200,300jBarnada1l
424 4274 4334 4414 42/
23
Corp class A
*42
43
4211s 4238 •42
45
1•42
*43
44
44
434 •43
1001 Class B _
25
101 101
102 10412 10414 105 *100 103 1*100 102 *100 102
1,000 Bayuk Cigars, Inc
NO Par
106 106
10414 10534 *10414 106
106 106
10412 10412 10512 10512
1001 . First preferred
100
2135 22
20/
1
4 22
2114 2134 214 22
2014 2074 2012 2112 25,200.13eacon Oil
No Par
8034 78
77
77
7712 8034 79
7834 774 784 7712 7812 11,300'Beech Nut Packing
20
1414 1414
1
4 1414 1412 14,4 1414
1434 1474 1412 14/
1418 1414
1,600 Belding Hem'way Co__No par
*8412 85
8514 *8412 85
8414 844 84,4 84,4 *8414 85
*84
• 200 Belgian Nat Rys part pref___
4135 4214
86
86
113 113
109 109
324 324 I
54 I
53
5934 60/
1
4
34 34
7974 8014
812 84
7/
1
4 734
28
28
22612 229
•122 12212
1304 13074
1018 104
75
*71
1
• Rid ond sated prices to sales on 4018 day. 2 Ex-dividend.
I
o Ex-rights
PER SHARE
Range Since Jan. 1.
Oa basis of100-ante jell
Lowest
Highest
per share
Per share
3614 Nov 2
76 Nov 2
90 June 19
109 Oct 27
195 Jan 4
1113 Feb 8
3414 Jan 17
2% Jan 17
59 June 19
713June 12
1 Jan 5
23 Mar 15
1411 Feb 18
12012June 28
11513 Feb 18
94 Oct 8
89 Mar 2
2713 Feb 20
15% Feb 20
55% Feb 20
7414 Jan 1
60 Oct 1
14% July 1
36 Feb 17
153a Feb 18
3973July 17
12234 Oct 1
10% Apr 27
404 Apr 27
704 Jan 1
136% Jan 10
S8' July3
110% Aug
81 Oct 20
69 Jan 1'
107 Jan
11 Feb 18
53 Jan 4
169 Jan 10
2233 Feb 28
10414June 25
81 Feb 24
814 Oct 9
31 Nov I
69 Feb18
28 Jan 10
90 Jan 7
71 JAI) 5
514 Jan 12
5813 Jan 13
864 Jan 13
87 June 21
10314 Oct 24
12912June 19
39 Mar 13
109 Aug 8
1284 July 19
451 Nov 2
624 Jan 11
10134 Oct 17
1304 Jan 18
11012 Jan 4
5114 Feb 7
58 Jan 10
2758 Nov 1
312 Aug 9
80 Bent 28
169 Feb 27
13112 Jan 9
141 Jan 6
100 Oct 30
501sJune 13
109 June 19
55 Feb 18
100 Feb 17
47% Feb 27
19% Oct 19
172 July 24
182 June le
152 JUDO 19
115148ept 18
10972 Aug 10
10733 Oct 10
52 June 11
98 Oct
14 July 27
39 Aug 31
1012June 2
34 June 12
Vs Jan 1
60 Jan 1
54 Jan 1
5514 Feb20
112 Oct 27
8618 Jan 3
1114 Jan 16
618 Jan 10
6712 Jan 12
351g July 23
29 July 20
10612 Oct 26
4014June 13
3712 Feb 18
3718 Feb 18
88 Feb 27
9514 Feb 9
11412Sept 10
63 Jan 3
102 July 24
85 Apr 82
10218July 31
11634 Oct 26
1141:June 18
410 Oct 19
65 Sept 25
6914Sept 25
5% Mar 20
8633 Oct 13
1433 Jan 24
9% Oct 23
314 Jar, 26
24034 Oct 23
12713May 4
14112Sept 4
16% Apr 19
90 Apr 19
3814 Mar 81
2314May 24
7612 Aug 21
159 May 9
8573 Jan 3
244 Aug 28
6113Sept 13
41 June 4
Ws Jan 27
128 June 12
2614May 21
6573May 21
113% Oct 15
147 Apr 80
11112 Jan 8
1374 Mar 31
105 June 4
9514 Nov 2
114 May 21
154 Apr 10
8014Bept 18
287 Nov 2
5033 Oct 25
110 May 24
100 Sept 7.
154 Feb 11
67/
1
4 Feb 1,
8134May 311
4634 Aug 6'
9912May 9:
12712 Oct 24
1138 Oct 17
135 Sept 4
150 Oct 30
115 Jan 311
184 Mar 24
180 Mar 26'
53388ept 241
11712May 14
25 Feb 7
90 Jan 3
95 May 14
10714May 28
176 Nov 1
13814 Feb 21
86 Apr L2
7478Sept 20
45 May 14
618May 28
119 Jan 6
27534 Oct 29
142 Apr 20
17413 Apr 13
120 June 5
7018 Jan 11
120 Feb 29
81 Sept 8
11012May 31
735sSept7
32 Jan 17
211 May 17
176 Jan 3
177 Jan 8
126 Apr 20
14112 Nov 1
115 Mar 31
7014May 4
106 Apr 13
25 Oct 30
6214 Feb 14
1912 Feb 9
5334 Oct 18
57 Oct 17
11774 Oct 15
9014 Nov I
9812 Oct 20
11514 Mar 16
9712June 7
2312Sept 8
1313May 11
9112June 6
5114 Apr 2
4433 Mar 30
114 Mar 19
5314 Sept 8
5333 Sept 7
5973MaY 21
6514 Oct 31
23834 Oct 25
1184 Jan 3
101 Mar 23
11012May 31
1732June 6
913Mar 14
3: Jan 21
78 May 9
1733May 25
3734May 25
5212May 1
285 Mar 81
12414 Am 11
Ill% Jan 6
3212June 14
5212 Feb
4578 Oct 20
44 Oct 17
1404 Mar 1
11013 Mar 28
2313 Oct 16
13312 Feb 9
22 Jan 12
9212May 14
814 Jan 6
418 Jan 3
25 July 13
58 Oct 29
612 Jan 18
25 Aug 31
43 Oct 17
235 June 11
115 Oct 24
10713 Sept 4
26% Aug 3
231
:Aug 20
20 June 12
20 June 14
98 June 20
104 June 19
1214 Mar 16
7012July 13
13 July 26
8213Sept
PER MALI
tausfor Pinto.,
Year 1927
Lewin
Hfokost
$ per flare I per ohato
/it; Mar 1184 lit;
109 Aug 11312 Feb
124
Jan 210 Nor
Fet
62 Nov
22
715
18 °
0i1
Ct
284 June
618 Seta
:
7
14J
AI
114
241
kb
18 Apr 82 Segel
131
Jan 16914 Seta
120 Mar 124 Ant
88
Jan 11814 Dee
113
.Nov
2411 Feb
68 Dec 108 Feb
2718 Apr IN web
84 Apr 214 Dec
284 Apr 725 Dec
41
Jan 98 Nor
6612 Jan 65 Seta
1618 Oct 2314 Mal
85 Dee 604 Jet
13 Jan 2834 Oct
8512 May 68 Julp
11714 Feb 128 Mat
54 Aug 394 Jai
4,8601/4 Aug 08 Fe
Mar 77¼ Dec
126
Jan 14134 Dec
95 July 111 Dec
12414 Oct 13414 June
9812 Dec 103 BOPS
38
Jan 7414 Nov
90
Jan 110 Der
918 Apr 1612 Not
8818 Aug 5712 Nov
127 Jan 183 Nov
11372 Feb 31 Dot
884 Feb 1094, Doe
it;Apr
-;:s
3018 Jan
2634 Ovi
84
Jar
37 Mar
4 June
2018 AM
46/8 Mar
9914 Oct
11912 Feb
731e Jan
361a NON
Oat
.
60i1474 July
71 Nov
119 Lug
9612 Mee
7218 Dee
10 Jan
7212 Nov
9212 Noy
116 May
127 July
110111 Dee
4918 Des
11:11; Dee WI;juna
84 Nov 1101£ Mae
84 Jan We OW
11114 -lin lei
874 Apr 11614 Nov
We Jan 8214 Me
49 July 6418 Nov
3872 Oct 81 July
23800$
611£ Jac
80 Jaa 12334 No/
1825, Jan 1884 Dec
11914 Mar 133 Dee
,No1
119% Jan 1465
9412 J1111 10012 Oct
41112 Apr 728 Dee
Jar
11014 July 115
6514 Nov 9534 Ma/
104 Nov 1164 Ma,
4112 Jan 0834 Ocl
Apr
26
Aus
1694 Jan 1854 Oct
120
Jan 189 Nov
11913 Jan 186 Nov
11013 Jan 120 Dee,
11974 Nov168 Fet,
1074 Feb116 Sept
£6 Aui 724 Bop'
9973 Oct10312 Dec
1612 June 8331 Jan
6673 June 8612 Jag
974 May 2414 Ow
2514 Apr 5714 AU!
5% Sept 1014 Feb
35
Oct 514 Pet
4114 June 6012 Dee
38 Mar 83 Dee
i06
Jan 11812 Dee
79
Ocl 9614 Feb
814 May 1573 Jan
8 Dec
94 Jac
60
Apr 8614 Jae
5054
21 D
AL!' 5
545,
612 N
jo
al
i
y 1u141121 Nov
130%
0912 31
Noar
1
4
12 N
Fo
ot
35
912 F
oo
l 63
50/
No
2914 Mar al% Nov
101 Doe 18111 Aug
11612 Feb 119 Mg
564 Mar 70 June
Jan 107 J1117
98
1218 Apr
714 June
614 Mar 1014 Jan
2312 Dec 01
Jan
7212 Dec 8034 Nor
Mar 11 Dee
28
144334'818
Sep.
mallb
lev
: 12644558462! Tu°1
Mar 11078 Der
Id" Jan
2011
2015
4912
101
14
5014
1512
117i Ire!
Oct 3512 Pelt
Oct 824 Fes
Jan 109 Dee
Jan 110 Au
Oct 1814 June
Apr 7414 Nov
July 2714 Jan
2498
new York Stock Recora-Continued-Page
For sales during the week'of stocks not recorded here, see third page preceding
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
Oct. 27.
Monday,
Oct. 29.
Tuesday,
Oct. 30.
Wednesday, Thursday,
Oct. 31.
Nov. 1.
FridaY,
Nov. 2.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
PER SH ARB
Range Sines Jan. I.
Os Oasis of100-allay(Iota
Lowest
Molest
PER MARS
Range for Previa'',
Year 1927
Lowest
Higheai
$ per share $ per share $ per share $ per share $ per share $ per share Shares Indus.& illscell.(Con.) Par
Der Mars
mu share 5 per glare $ yet share
No par 5384 Jan 19 102 Oct 29
97 10078 9912 102
9614 10114 9518 98
97
9914 30,200 Beat & Co
497s Aug 595s Not
9618 98
100 511
/
4J one 19 724 Oct 15
65% 6658 6612 6714 6614 6734 6518 6712 6358 6612 6514 65/
4374 Jan 664 Sept
1
4 73,200 Bethlehem Steel Corp
120 120
11914 120
120 120
11912 119 2 11914 11914 11914 11914 1,500 Beth Steel Corp pf (7%)_100 11618June 29 125 Apr 13 10474 Jan 120 Dee
3,100 Bloomingdale Bros___No par 3378July 23 4734 Sept 15
43
4018 4018 42.2 4312 43% 4412 43
34 June 5278 Nov
4414 4212 4314 43
30 Preferred
10912 10912 *10912 110 *109% 110 *10912 110
100 10912 J811 11 11134July 3 1094 Jan 114 Nov
103 110 *103 110
200 Blumenthal & Co pref
117 117 *118 11834 *11518 118 *11518 11712 *11518 117 *11518 117
100 87 June 27 117 Oct 26
44 Jan 95 Dee
No par 6514 Jan 8 7834 Jan 27
7312 7378 7312 7312 7312 7312 73
7312 1,400 Bon Aral class A
53/
1
4 Jan 69/
1
4 Doi
7314 7314 7314 73
912 958
No par
958 10
912 612 8,400 Booth Fisheries
514 Jan 4 1118 Oct 17
412 Sept
958 9/
1
4
87s Apt
933 958
93s 912
/
4 Mar 14 67 Oct 16
36 Sept 5714 May
64 6434 *62 6412 *61
63
62 6278 6112 6112 6014 60,2 1,100 1st preferred
100 411
16312 16312 16412 16512 1621
/
4 164
50 152 June 19 187 Jan 11 16712 Dec 169 Dee
16212 16614 16312 164
163 16412 4,800 Borden Co
1114 12
1412 1412 1434 17
3,600 Botany Cons Mills class A.50
17
8/
1
4 Aug 23 23 Jan 4
18 May 3012 Sept
17
1712 1734 1734 17
50% 5212 48 5278 4514 49/
1
4 46
1
4 Oct 16
1
4 Feb
48% 4912 52,8 5014 52 383,100 Briggs Manufacturing_No par 2118 Feb 4 63/
1912 Sent 88/
700 British Empire Steel
12 Apr
4% 4% *412 5
412 4%
4% 4%
100
14 Jan 10
*414 5
9 Dee
*412 5
914May 25
*612 612
*612
612
200 2d preferred
2/
1
4 Jan 5 12 Feb 1
.100
1 Apr
64 618
612 6,2 *612 612 *618 612
Its Dee
73
37,100 Brockway Mot Tr
No par 4512June 1 7412 Oct 20
7038 7218 7218 7234 7034 72% 6912 7134 69% 7114 71
*141 147 *141 148 *141 145 *139 145 *140 146 *141 146
Preferred 7%
100 110 June 21 149 Oct 20
100 Brooklyn Edison Inc
100 206/
1
4 Jan 10 27214 Oct 29
Feb ill" be;
*266 272 27214 27214 *266 275 *267 275 *265 275 *265 275
1,900 Bklyn Union Gas
16234 16234 *161 164
8958 Apr 1574 Del
158 160
158 158
158 158
160 162
No par 139 June 13 17484 Sept 21
*47
No par 4518June 11 5512 Apr 5
804 Feb 5014 Dee
4712 *47
4712 474 471g 4718 4712 4712 4712 4718 471s 1,000 Brown Shoe Inc
5312 5414 53.2 5412 5258 5334 51
2578 July 8878 Jae
52% 5112 5414 521 5312 19.100 Brunsw-BalRe-Collan'T-No Par 274 Feb 20 6234 Sept 20
10 2412 Feb 18 5078June 2
337 3434 34
3434 335 3538 3312 34
335 33% 3418 3418 5,800 Bucyrus-Erie Co
1
4 Feb 17 5438May 14
10 33/
423 4258 425* 4318 4218 425
42
4274 4218 4234 42
4234 6,100 Preferred
600 Burns Bros new clAcomNo par 9312 Feb 17 127 Oct 29 "lit;June ills; "ii;
*126 127
126 127 *125 127 *125 126 x123 12512 *121 125
600; New class B eom____No par 151
/
4 Mar 8 4338June 4
1614 Mar 34,84 Jan
3534 348 348
*34
3612 3534 3618 3512 3512 3312 3312 *35
60 Preferred
*104 107
100 9774 Feb 21 110341une 11
90 June 100 Jan
10412 10412 104 104 *10412 107 *10412 10512 10412 10412
500 Burroughs Add Mach__No par 139 Jan 14 17612Sept 29 t90 Mar 165 Dee
17012 17012 172 173 *172 17234 *171 172
173 173 *172 173
29/
1
4 Jan 69 Nov
No par 50 June 20 73 Oct 30
68
71
70
713 73 I 6914 718
6912 71
711 27,600 Bush Terminal
70'4 72
130 Debenture
9114 Jan 11178 Dee
1081g 1084 *108 109
10818 10818 108 108
108 10834 *108 109
100 10478 Aug 16 115 May 21
130 Bush Term Bldgs pref.__ _100 111 Aug 1 11912June 15 10378 Feb 120 Aug
*11412 115 *11412 115
11412 11412 *11412 115
115 115 *11412 115
758 Nov 111
8/
1
4 Aug 6 1674May 21
1218 1278 121 1318 118 1238 1114 1218 115* 115* 11
/
4 Jan
1134 12,400 Butte & Superior Mining _10
1
4 Oct 26
314 Mar
1018 103* 10
418 Jan 19 11/
54 May
812 9
5
1012
9
1038
812 9 34,300 Butte Copper & Zino
9
98
5,900 Butterick Co
4212 43
44 Oct 61/
1
4 Feb
437
4212 4358 43
100 40 July 13 6712May 15
4212 4212 4218 4234 4212 457
42 Jan 10254 Dec
153 157
157 16012 15614 16112 15014 159
15314 15614 153 1548 17,600 Byers & Co(A M)
No par 9011 Jan 16 16814 Oct 23
30 Preferred
*11234 ____ *11234 ____ *11234 ____ *11234 ____ *11234 ____ 113 11314
100 10878 Apr 13 11412 Aug 11 10574 May 11212 Dee
1,200 By-Products Coke
*85
88
88
No par 65 Mar 1 94 Oct 10 66 Jan 924 June
8614 8614 88 88
8812 8834 8814 8812 *86
11,100 California Packing
7412 7314 74
6014 Apr 79 Dec
7478 754 7414 7614 741 '7512 7312 7514 73
No par 138(2.1une 18 8258 Sept 17
*31
35
35
California Petroleum
861
35 *32
35
*31 '35 1 *31
35 *31
25 2514 Mar 16 36 Sept 6
33
312 5,500 Callahan Zinc-Lead
-1-14 Sept
312 35*
184 Mar 8
538 Apr 30
3/
1
4 33
10
312 4 1
1
4
338 4
334 3/
6111 June 1284 Dec
11558 117
117 11812 11438 11712 11212 11712 115 11634 115 1165* 13,600 Calumet di Arizona MinIng_10 89 Feb18 12012 Oct 24
4312 4334 433* 443* 4318 4412 *59 60
4212 4378 4218 43 62,200 Calumet & Hecla
25 204 Jan 10 4612 Oct 16
1614 July 24/
1
4 Des
7612 7714 7614 7734 8,300 Canada Dry Clinger Ale_ No par 5478 Jan 5 8612May 8
36 Jan 6018 Aug
773 78
7718 78
7612 7712 7614 773
3,300 Cannon Mills
4634 47
46
47
4718 4734 47 475
47 4712 467s 47
No par 46 Sept 5 50 Sept 14
100 247 Jan 21 40812 Oct 18 132 Jan 28314 Oct
390 390 395 397 397 397 *385 395 397 40212 39912 39912 1,600 Case Thresh Machine
100 Preferred
124 127
125 125 *124 127
100 123 Oct 8 13512 Mar 30 111 Feb 129 Dee
*125 128 *125 128 *125 129
/
4 31,700 Central Alloy Steel_ --No Par 2818 Mar 27 4412Sept 17
41
3918 401
4114 40
24 Apr 83 Apt
39
3978 3914 40/
1
4 381s 39/
1
4 37
/
4 2313 8,600 Century Ribbon Mills_No par 11 Aug 14 24 Oct 23
18/
1
4 2014 201
1
4 19
104 Jan 161
/
4 Aug
19
20
1914 1912 18/
1912 20
87
260 Preferred
87
86
85
*84
100 77 Aug 24 92 May i 5
70 Jan 8874 Dee
82
8218 82
8214 8478 85 *84
10012 1033* 10014 10234 95,500 Cerro de Pasco Copper_No par 5812 Jan 3 10618 Oct 24
10213 10412 103 10538 10112 10478 9912 104
58 June 724 Der
3134 3112 3134 3034 313* 12,900 Certain-Teed Produote-No Par 3014 Oct 26 6458 Apr 28
42 Jan 5574 May
1
4 3218 31
313 3212 32/
1
4 33
30/
300 7% preferred
*80
90
90 *80
90
90
*80
1
4 90
100 00 Oct 30 100 May 21
*90 9318 *90 93/
*7312 75
3,100 Certo Corp
*73% 75
No par 7013 Oct 26 794 Aug 23 65 Dec
75
Aug
*7313
7534
757s 76
73
73 I 73
1834 1712 1912 1718 1858 1714 1814 1612 1712 31,200 Chandler Cleveland MotNopar
44 Nov 14 Mat
16
1612 18
51s Feb 29 2078 Oct 22
24
25
6,900 Preferred
1
4 24
2418 26
2314 2378 23/
No par 14 Mar 13 2978 Oct 22
2414 24141 25
26
13 June 2614 MS,
6712 6614 6614 7.900,Chesapeake Corp
67
No.ipar 6234July 13 8178 Jan 6 64/
1
4 June 41678 Oct
*66.2 67
6634 6814 673 6858 6614 68
400 Chicago Pneumatic Too
111 Aug 15 14114 ..181)30 1204 Jan 18714 Mat
122 12312 *115 124 *120 124 *120 12334 123 123 *120 123
*3018 33
3018 3018
• 60 Chicago Yellow Cab _ _No par 2978 Aug 1 43 Jan 14
*3018 32
*3112 3214 311y 3113 *3018 33
88 July 47 Oct
49
/
1
4
50
50
5018 50
50/
1
4
6,900 Chickasha Cotton 011
10 4514June 12 5612 Oct 1
52
5278 5114 5278 5012 51
49
4934 12,500 Childs Co
46
50
4978 51 1 49/
No par 37 Apr 19 57.2Sept 10 iii7; Mar
1
4 5018 4914 5013 4634 50
-i1-19
'
5912 6014 5878 60 81,000 Chile Copper
1
4 Dee
25 3783 Mar 5 6034 Oct 24
5814 591
/
4 5812 60 , 5878 5934 5878 60
3818 June 44/
*65 120
*62 120
*65 120
Christie-Brown tern ctfeNo par 79 June 20 131 Jan 23
1
4 Dee
*65 120 . *65 120 ' *65 126
3478 Jan 90/
12714 12938 129 1313s 12514 13114 12114 12814 12134 12738 12338 128 530,800,Chrygler Corp
No par 5454 Jan 16 14012 Oct 8
8818 Jan 634 Dee
5238 *52
50 City Stores class A
5258
*5212 5334 *52,2 5334 5212 5212 *5212 5334 *52
4614 Mar 54 Dee
No Per 5114 Jan 19 5414June 11
10212 103
1011
/
4 103
10134 102
3,5001 Class B
103 103
No par 62 Jan 5 113,7• Oct 18
4,111 Apr 6414 Dee
103 10314 1021, 103
7212 7178 72
7034 7134 1.900 Cluett Peabody & Co No par 69 Aug 13 10934 Apr 5
73
72
*7214 74
73 7314 73
51 June 8411 Oet
101 Preferred
*114/
1
4 11834 *11514 11834 *11514 11834 *11514 ____ *11458 11834 11514 11514
/
4 Jan 12514 Nov
100 11514 Nov 2 12434 Mar 19 1111
169 1745s 1698 1707s 16778 16918 16014 16634 23.900 Coca Cola Co
No par 127 Feb 20 1804 Oct 15 0964 Apr 1994 Apt
17312 1745* 17218 174
5718 6018 60
61
12,000 Collins & Aikman
57/
1
4 59
No par 50 June 25 11174 Jan 3 86 Aug 11378 Dee
59
59/
1
4 5738 59
5734 60
500 Preferred non-voting____100 9014 July 6 109 Jan 8 10212 Sept 10954 Des
*93
94
93
94
*94
98
98 *94
98
*94
98 *94
671
/
4 8,100 Colorado Fuel & Iron
6614 67
65 67
100 5212June 25 8412 Jan 31
4278 Jan 96/
1
4 July
6512 66
63 6512 6334 6612 66
1
4 93
6,300 Columbian Carbon v t oNo par 79 June 12 10414 Sept 25
9114 9213 92/
9212 9212 93' 9112 93
9112 9112 92
66/
1
4 Jan 10114 Nov
1
4 31,800 Colum Gas & Elea
1
4Sept 20
123 12378 12314 12514 12138 12378 12038 12214 12114 12614 125 128/
82/
1
4 Feb 98/
1
4 May
No Par 894 Mar 15 133/
400 Preferred
100 106 June 19 11018 Jan 3 9912 Jan 11018 Dec
*10614 10612 106,1, 107 *106 107
106/
1
4 10678 10678 10678 *106 10714
14 June 2412 Des
4312 4438 445* 4534 435* 4514 4212 4434 4358 4412 4334 4512 34,000 Commercial Credit____No par 21 Feb 20 4812 Oct 10
2412 24
2412
700 Preferred
*24
24
24/
1
4 *24
25 23 Feb 3 27 May 8
17 June 241s Sept
2412 *24
*24
2412 *24
26
270 Preferred B
26
26
25 23 Feb 7 2774May 11
2614 *2512 26
*2512 2614 26
1878 June 25 Dee
*25/
1
4 2614 *25
9434 9418 9418 1,040 1st preferred (634 %)_ _100 85 June 12 99 Oct 10 69 July 89/
94:2 95 *94
1
4 Dee
9538 9434 95
93 9538 93
1
4 136 140 64,600 Comm Invest Trust___No par 5574 Mar 1 14078 Nov 1
A118 May 62 Dec
12312 12612 127 13312 13134 13712 1351? 139313 138 140/
50 7% preferred
100 99 Jan 27 109 May 14
944 Sept 102 Dee
10314 10314 10314 10314 10214 10214 *10314 107 *10314 107 *10314 107
9612 9714 1,000 Preferred (6SS)
97
100 92/
1
4June 16 ugh Aug 20
1
4 Dee
97
86/
1
4 July 98/
97 *9612 97
9734 98
97
97
97
100
618 Aug 30 3018 Nov 2
277 2978 285* 301s 14,200 Warrants
2178 2212 2212 2434 2512 2734 2612 28
12,900 Commercial Solvents. No Dar 13778June 19 22534 Oct 23 1-4W - Nov
Sept203
212 21514 21612 21912 214 218 20912 21412 214 21414 212 215
as% May 7874 Oat
83
8518 8412 8518 9,500 Commonwealth Power_No par 6214 Jan 11 8878 Sept 30
83/
1
4 84
8212 84
82 84
8234 83
77
74
7612 1,700ponde Nast Publica„ _No par 48 Jan 14 84 Oct 13
89 Aug 53 Dee
75
77
77
77
75
7612 7534 7534 76
2534 2614 55,600 Congoleum-Nalrn Inc_ No par 22 June 12 3118 Apr 17
1714 Jan 3974 Dec
2512 2758 . 26
2638 2512 2638 2514 26
26
27
No par 67 Feb 18 8178 Jan 3 47 Mar 8812 Dec
742 2,600 Congress Cigar
75
7512 75
75
74
7212 75
7434 *7312 7434 *73
500 Conley Tin Foil stpd_ _No pa,
14 Feb
/
4 *118 1381
14 Jan 10
78 Jan
134 134 *118 138 *118 13* *113 11
1113 112
334May 14
Ma Oct 8674 July
9212 9212 93% 3,800 Consolidated Clgai
No Par 701, Jan 20 9* June 4
9112 9112 9112 92
92
92
9038 9118 91
1001 Preferred (6)
*9412 98
100 9338 Oct 29 104 Sept 13
*9412 98
/
4 98
*94
98
9438 9438 59438 98 *941
4,100 Consol Film Ind prat__No par 23 July 16 2912Sept 10
26
2512 2514 2534 25
2578 26/
1
4 25 25/
1
4 25
25
25
94 Mar 1253* Dec
783 7934 78
7914 7818 7933 7812 8012 64,900 Consolidated Gas(NY)No par y74 Aug 28 17014May 7
7818 7834 7834 797
par 9714 Aug 31 105 Mar 28
99/
1
4 9978 5,700 Preferred
93 Mar 103 Dec
9912 9912 9912 9934 9958 9934 9934 998 995 997
214 Aug 16
588 Mar 28
No par
414 412 60,600 Consolidated Textile_„No
84 Mar
414 412
473 5
74 Jane
478 51s
438 5
414 438
6.000 Container Corp A vot No par 20 Nov 1 36 Apr 30
2314 23 2318 2112 2212 2012 2112 20 2012 2012 21
*23
par
1078 8,000 Class B voting
934 1038
934 Oct 31 1914 Apr 30
9/
1
4 1012 10
1118 1134 11
1134 1012 11
3
3912
3913
41
Continental
747g
11,700
Baking
Cl
AN:
N
264
Apr
634
Jan
13
10
-11314038
1Apr
1
4 4112 3914 4014 39
Jan
3978 40 4034 39/
39
No par
3/
1
4 Apr 10
818 39,400 Class B
878 Oct 25
712 8
712 734
734 818
8
814
734 813
May 104 Ms
100 73 Apr 10 981
/
4 Jan 20
8812 7,400 Preferred
8534 8712 87
72 Apr 9774 Nov
84 84
8434 8534 8434 85
83.2 84
117 11714 9,900 Continental Can Inc___No par 8014 Jan 10 12878 Sept 4
118 11838 116/
1
4 1181 11618 11712 11634 118
5874 Apr 8678 Dee
11658 118
Preferred_.
100 123 Jan 5 128 Mar 28 120 Jan 126 JUns
8125 127 *125 126 *125 126 *125 127 *125 126 *125 126
3,300 Continental Ina
10 75 Feb 15 9478May 15
744 Dec 93/
8312 8434 8478 85
1
4 Dot
86
8778 85/
1
4 8814 *83 86
8534 86
1514 1518 1612 1558 16,2 1512 161
878 Nov 13/
1
4 Jan
1434 15
15
/
4 1512 1618 67,100 Continental Motors_ __No par 10 Mar 13 20 Sept 18
8514 8414 8518 20,500 Corn Products Refining_25 6478 Jan 3 89/
1
4 8514 825s 8414 84
1
4 82/
4672 Jan 68 Nov
8218 8238 83 83/
1
4Sept 14
390, Preferred
14178 142
142 142
100 1384 Jan 16 146/
1
4 Apr 10 128 Jan 14214 Dee
141 14112 14114 14114 141 141
141 141
3,700 Coty Inc
123 Jan 3 293 Oct 5
66 Jan 123 Dee
272 273 280 280 277 28234 270 28134 *274 27712 *275 277
76/
1
4 7712 3,100 Crucible Steel of America
7612 77
N!..1p0O
ar 6914July 3 93 Feb 7
7812 7618 78
7834 78
7612 Oot 96$4 Mat
7638 7834 78
I Preferred
100 112 Oct 26 121 May 11 103 Jan 115 Sept
113 115 *113 115 *113 115 *113 114 *112 11334
'113 115
2312 19,100 Cuba Co
No par 20 Oct 24 287sMay 8
1812 Aug 804 lin
2012 2118 2012 2338 23 2478 22.2 2412 2212 2312 22
4 5
478 5
434 4/
1
4 4.800 Cuba Cane Sugar
1
4 •
No par
488July 31
4/
1
4 4/
4/
1
4 4/
1
4
712May 12
1
4
478 Oct 1074 Jan
*4/
1
4 4/
1612 1712 1634 1634 13,800 Preferred
1
4 161
/
4 1678 18
100 1334 Oct 15 3258 Jan 12
2878 Nov 5074 Jai)
*1514 1584 1538 1512 15/
/
4 1718 .5,400 Cuban-American Sugar .10 151
/
4 Aug 13 2414May 25
1
4 16/
1878 Nov 281s 300
1
4 1714 1658 1714 161
*17
1712 1718 17/
1714 17
300 Preferred
*9558 99
100 9512 Oct 11 108 • Feb 1
97
97
96
9614 *9538 97
974 Nov 107 Atlit
*9614 97 *9614 97
200 Cuban Dom'can Sug_Napa?
614 Oct 16 13 Jan 4
7
*612 714 *612 714 *614 714
1012 Nov 18 Ian
7
612 612 *613 738
4
65
11,400
643
643
4
68
Cudahy
Packing
653
8
50
54
663
8
6412
Jan
8
7814
Aug
21
434 Apr 58/
1
4 &Pt
6614 6678 6414
6614 67
12414 12712 28,400 Curtiss Aer & Mot Co__No par 53/
125 128
12314 131
1
4 Feb 27 19274M&Y 16
4518 Nov 6984 De(
13114 13334 13214 13738 1283. 135
229
200
*210
*210
229
Oct
228
Cushman's
Sons
152
*220
14484
J813
Apr
*220
230
No
Par
13
230
Oct
16
108
2297
4
2297
8
230
*220
90 Preferred (7)
126 126 *124 128 *124 128
100 114 Jan 11 141 Sept 20 107 Apr 125 Dot
126 126
126 126
128 128
59
1,500 Cutler-Hammer Mfg
60 60
60
10 52 June 20 63'2Sept 4
60 60 I 60 601s 597 597
GO
60
6238 4,700 Cuyarnel Fruit
1 -on;
6178 61
No par 49 July 27 63 Oct 11
80 Apr -11;
6612 6852 *38
5813 59
59
59 6134 61
5814 59/
1
4 5738 5914 36,400 Davison Chemical
No par 8478 Feb 18 6654 Sept 24
2614 Apr au, Des
5712 61
5812 62 1 5858 61
5812 59
40
4118
1,500
393
4
Debenham
40
3934
-40
Securities
58
36
Oct
19
*4012 42
4012
4914
Apr
27
4134
40
*4012
180 Deere & Co pref
NOT
1241s 12418 124 12478 *124 12412 *124 12412
100 11512 Feb 1 12674May 15 164 Jan
*124 12412 124 124
1,900 Detroit Edison
100 16612 Jan 11 220 Sept 17 1834 Jan 1704 Dee
19012 191 2 191 19112 191 192
19134 19134 *191 192
*19134 192
51
513
Aug
511
/
4
42
/
1
4
4
2,200
364
511
/
4
Dot
Devoe
&
52
Raynolds
A__No
par
40
Jan
3
Apr
16
/
1
4
61
51
5158
51
/
1
4
1
4 54
5338 5338 53/
60 1st preferred
Jan 11412 Des
100 108 Jan 9 120 May 16 101
1
4 11212 11212 11434 11434 *11212 11412 11212 113 *11212 11412
*11212 114/
16214 16214
400 Diamond Match
164 165
100 13478 Jan 18 168 Oct 18 115 Feb 14754 Sens
164 165
161 165
163 163
16014 165
28
1,200 Dodge Bros Class A .._._No par 12 June 11 4038 Oct 11
1314 Oct 274 Jet
2514 2512 26
253* 26
2618 2612 2618 2618 *2614 28
400 Preferred
5618 Oct 85 Feb
No par 6312June 19 111 Sept 22
, 1063. 1068 *10614 107 *10614 107 *10614 107
•10614 107
1063* 1063
3,300
7 June 1614 Dee
8
/
1
4
8
/
1
4
Dome
812
Mines.
Ltd
13
6
8
7
8
812
No
par
8
June
131s
Jan
83
8
83
8
812 8714
*812 9
83*
No par 80 Mar 15 11912 Oct 18
1
4 11334 1131
/
4 11512 11414 11512 14,200 Drug Inc
112/
1
4 11434 11314 11512 113 115 I 112/
16,400 Dunhill Internattonal__No par 554 Jan 9 91 Oct 23
49 Aug 323* -Ziert
89
8514 8912 88
1
4 8514 87
8712 88/
87
873s 87 88
•Bid and Gaited prises; no ssie on thls day
2 Ex-dividend
a Ex-rights
b K2-warrants. a Shillings.
New York Stock Record -Continued-Page
2499
For sales during the week of stocks not recorded here, see fourth page preceding
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday,
Oct. 27.
Monday, !Tuesday, 1Wednesday, Thursday,
Oct. 30.
Oct. 31. I Nov. 1.
Oct. 29.
Friday.
Nov. 2.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE
Shares Indus.& Miscel (Con.) Par
600 Duquesne Light 1st pref._ _100
3,700 Eastman Kodak Co_ _No par
70 Preferred
100
14,400 Eaton Axle & Spring__ _No par
5,000 ElduPontdeNem_.__Nopar
1,400 15.7 non-vot deb
100
4,500 Eisenlohr & Bros
.25
11,400 EitIngon Schild
No par
2,400 Preferred 632%
100
65.700 Electric Autolite
No par
6.800 Electric Boat
No pa.
27,700 Electric Pow & Lt
No par
1,200 Preferred
No pat
10,900 Mee Storage Battery.. No par
200 Elk Horn Coal Corp.._No par
2,400 Emerson-Brant Class A.No par
700 Endicott-Johnson Corp....50
300 Preferred
100
12,100 Engineers Public Serv__No par
9114 9112 *9114 9112 9114 9112 91
*9112 9218 9138 912
9112 2,600 Preferred
No par
3058 31
30
3018 3014 31
3078 3234 3212 3312 324 3312 75,600 Equitable Office Bldg._No par
61
61
63
6234 6214 6314 6218 6232 6112 6112 5,700 Eureka Vacuum Clean_No par
6178 82
*2312 24
2412 2458 2334 2334 2312 2312 *23
*2312 24
900 Exchange Buffet Corp-.No Par
2414
4414 45
4478 45
45
4578 43
4258 43
4434 4334 44
2,500 Fairbanks Morse
No par
11134 11134 11134 11134 *11134 112
-*11134 112 *11134 112
180 ?referred
112 112
5334 5334 53
*5384 54
5312 53
53
*53
15
800 Federal Light & Trao
5338
538 "53
•97
98
*97
98
*9712 98
120 Preferred
98
98
*9712 98
No Par
98
98
*155 160 *155 160
156 156 *155 162
156 156 *155 162
200 Federal Mining & Smelt12.100
*100 10114 *100 10114 *100 10114 *100 10114 *10012 10112'10012 10112
1 Preferred
100
2158 2014 2114 2018 2012 2014 2058 7.200 Federal Motor Truck._No par
2158 20
21
2112 21
94
9112 9214 93
944 9412 9412 9412 9114 9218 92
3,500 Fidel Plies Fire Ins N Y_......10
93
*1138 14
*1138 14
*1138 14
*1138 14
*10
14
*11
14
o par
Fifth Ave Bus
8312 8474 5412 5534 5338 5534 5312 554 54
30.500 First Nat'l Stores
No
5712 5534 57
1112 1134 114 1134 11
1134 12
1138 114 1138 1118 12
No par
10,500 Fisk Rubber
6112 60
60
*59
62
60
6112 6112 *60
60
60
8001 1st preferred stamped_ _.100
60
62
60
60
6258 *59
*59
62
*59
106
*60
62
500, 1st preferred cony
58
59
8278 838
80
par
8278 7912 8134 7938 81
8278 84
8114 8314 65,800 Fielaehman Co
50
50
50
50
*49
4978 *49
4912 494 4978 1,100 Florsheim Shoe cl A
50
par
50
N
;
99
99
*98 100
*98 100
*99 100
*98 100
3001 Preferred 6%
*98 100
100
38
38
*38
391 *38
37
3912 *3634 3912 3812 3812
37
lsio par
500 Foundation Co
964 9712 9734 984 9518 9814 9558 9558 9614 9818 9614 978 43,900 Fox Film Class A
No par
4512 4738 4512 4614 18,800 Freeport Texas Co
4458 4534 4533 4618 4518 4638 4518 46
No par
*105
108
*10518
107
•105
107 *105 106 *105 106
*1054
1057
Fuller Co prior pref.___No par
2212 23
*2278 23
2234 2314 2238 2314 2238 23
No par
2234 2312 3,900 Gabriel Snubber A
1118 12l
11
13
1018 1112 1112 1238 12
15,900 Gardner Motor
No par
1012 11
1138
81.2 8212 8078 817
80
82
8014 8434 8334 8512 19,300 Gen Amer Tank Car
No par
8234 83
*11012 112 *110 111 *110 112 •110 112 *110 112
110 110
300 Preferred
100
7278 7414 71
72
7012 7114 7038 7338 7112 734 10,800 General Asphalt
714 73
100
113 113 *11212 118 *11212 118 *113 118 *113 118100 Preferred
*11214 118
100
139 139 *138 140 *138 139 *138 139
*136 139 *136 139
20 General Baking prof.. No par
36
3734 3712 38
37
371
34
3614 3414 3612 3534 36
No par
7,200 General Cable
7912 7918 8014 78
78
793
784 80
7834 7934 78
19,800 Class A
No par
79
60
60
6018 60
60
2,700 General Clear, Inc
No par
6012 593 60,2 5912 5978 5918 60
168 17012 16812 1715, 167 17038 164 16712 16612 1684 16614 168
57,800 General Electric
No par
1118 11
1118 11
11
111g
11
1114 11
114 11
1114 9,400 General Electric special..... 10
60
5814 62
61
55
62
6034 6212 61
62
18,800 General 0148 & Elee A. No par
*6034 61
9612 98
96 2 9912 9634 99
9532 9734 97
97
9534 97
15,100 Gen Ice Cream Corp No par
22014 22334 2183, 22178 21614 221
217,2 221
2184 223
22118 2244 901.700 General Motors Corp
.25
124.8 124% 12434 12478 12438 12434 12434 125
125 1254 125 12518 3,6001 7% preferred
100
5184 5134 *5134 52
52
52
*5113 52
514 52
52
52
800 Gen Outdoor Adv A__.No par
3214 331a 3234 3318 *3234 33
34
34
3213 323
3234 3234 3,500 Trust certificates_ _No pa
10238 1037s 10314 10478 101 10434 98 10112 9934 10278 10114 10212 22,300 Gen Ry Signal
No pa
69
69% 69
72
6938 7178 6814 7138 69
7038 69
7038 20.700 General Refractories...No pa
11714 11778 118 11934 11638 1187 11678 119 211212 11312 111 11278 22,400 Gillette Safety Razor_ _No pa
5138 524 524 5612 544 5734 5338 558 53
55
5213 56
No pa
63,800 Gimbel Bros
944 9412 *9413 9434 *94
394
500. Preferred
9434 *9414 944 '
10
9434 9414 9412
2758 28
2818 2834 2734 29
2712 2813 2712 28
2712 2734 35,600 Glidden Co
No pa
*10112 103 *10112 103
103 103 *10334 10378 10334 10334 10378 10414
.10(
340 Prior preferred
102 10478 104 10538 10318 1051. 10134 1047 10212 10312 102 10378 37,600 Gold Dust Corp v t c___No pa
8114 82
81
824 8018 8178 7834 80% 78'2 807
Nova
80
813
, 32,200 Goodrich Co(B F)
*112 11272 *112 11278 1113g 112 *11138 11112 11118 11112 1113* 11112
100
800 Preferred
7618 78
7814 8412 8038 854 7818 834 804 8212' 7933 8178 62,100 Goodyear T & Rub____No pa
994 9978 9912 9958 993 100
9934 9934 *9912 100 1 10014 10078 2,600 1st preferred
No pa
8212 8438 8412 8512 84
8538 8212 844 8312 8412 8312 8412 22.100 Gotham SUk Hoslery
No Par
83
83 t 8314 8414 8212 8414 8134 8278 81
No pa
80% 5,800. New
8112 80
-,0113 11372 115 116 *113 115 *110 115 *110 115 •110 115
100
400' Preferred New
*1044 105 1 104.2 104,2 •104 105 *10412 105
104 104 •10412 105
201 Preferred ex-warrants._ _100
•74
•714 8
*714 8 I *714 712 *714 8
•l
No pa
Gould Coupler A
8
4134 424 4314 46
4238 4534 4134 4414 4212 44
437 54.900 Graham-Paige Motors.No pa
43
4111 4014 4014 *38
40
40 I 41
*3812 4012 *3812 40
No pa
40
1,300 Certificates
7514 783* 7638 7914 77
7312 747
791g 7734 793
7712 7838 45,200 Granby Cons M 8m di Pr . NO
8614 8638 8614 88
8514 87 I 8713 89
100
8534 87
8512 86
4,500 Grand Stores
387
3618 38
3634 3738 38
35
No Pa
3714 358 3612 3614 3678 8,500 Grand Union Co
*5613 59 1 574 5734 5712 5734 567g 5714 5718 577
573 573
No pa
4,100 Preferred
*11912 120 I 119% 120 *118 119
11712 1184 11512 116
No pa
11512 11612 1,400 Grant (W. T.)
8313 8412 8372 8514 8314 84
77I 83
No par
82
8378 8372 8472 16,900 Grasselli Chem Co
*10712 10958 *10712 10912 *10712 10912 *10712 10912 "10713 10912 *1074 10912
100
I Preferred 6%
3214 32
3214 32
3214 3238 32
3214 32
3214 32
323s 8,100 Great Western Sugar_ -Noparl
-11334 115
1144 115
. *114 115
115 118 *11534 11812 11658 1181
100
720 Preferred
,
13312 140
13712 13978 139 143
13014 140
1354 13934 135 139
96.800 Greene Cananea Copper 100
514 514
5
514 54
514
5
5
*5
514
5
514 5,600 Guantanamo Sugar..-.No par
69
69
*68
69
69
69
*67
69 .66
68
100
*66
68
1,300 Gulf States Steel
2414 2438 244 2414 *2438 2412 2412 2412 *2438 2412
42438 241
80 Hackensack Water
25
8714 8712 8713 8778 8714 88
874 8712 874 8814 88
1,040 Hanna 1st pref class A_ _ __100
90
26
*25
2514 2612 254 2514 2538 2512. 2538 2538 2,600 Hartman Corp class A _No par
*2514 26
2234 2334 2338 2338 2338 2512 25
25% 2518 2633 2518 26
37,700 Class B
No par
119 120 *1164 12414 11934 11934 •11614 123 *11614 123
119 119
500 }Mime (0 W1
25
8614 54314 55
56
56
56
*55
554 588
56
561 5834 9.400 Hershey Chocolate----NO Par
7812
78.2
79
79
7814 7878 734 80
7918 81
804 813a 8,000 Preferred
No par
*10212 105 *103 105
103 103
103 10$ *103 10312 *103 10312
300 Prior preferred
100
*1712 18
*1718 18
17
17
171
17
17
17
*17
18
800 Hoe(R)& Co
No par
*25
2512 23
2578 *24
25
•24
z24
24
25
2478 2478 1,300 Hollander & Son (A)_ __No par
78
*754 77
*7512 77
•76
77
754 7514 *75
*75
77
100 Homestake Mining
100
7718 77
77
774 7434 7634 7412 7634 78
78
77
77
4.400 Househ Proclaim
No par
.13912 1364 138
1371
137 139
133 136
13334 13834 134 13712 8.300 Houston Oil of Tex tam ctts100
66
66
6614 6734 6512 671
65
664 6614 6734 6634 6738 22,200 Howe Sound
No par
8218 8278 834 874 83
854 82
8414 8312 8438 83,400 Hudson Motor Car....No par
8412 83
7314 75
7158 7334 7058 72
7113 73
7118 7212 7114 72,
7 47,900 Hupp Motor Car Corp_ _ _10
3234 3234 3338 324 3314 3138 32.2 313 333
32
3214 3334 41,200 Independent 011 & Gas.No par
2378 2378 23
*24
25
23
23
*23
24
23
2314 235,
600 Indian Motocycle
No par
98
98 '95
*95
*95
98
*95
98
*9314 95
*95
97
• Preferred
100
324 31
3178 3038 3112 3012 3234 3112 3212 17,000 Indian Refining
3118 3134 32
10
2713 2812 2712 2814 28
2818 284 29
28
29
28
2878 11,600 Certificates
10
160 160 *150 160
*155 170 ,•155 170 *150 160 *150 160
1001 Preferred
100
*95
98
95
964 95
98
95
*96
99
*95
*96
98
600 Ingersoll Rand
No Per
7112 71
7212 71
72
7012 7114 70
7034 7212 71
7014 5,500 Inland Steel
No par
2978 3032 3034 3078 3012 3078 2914 305, 2973 3012 30
3012 27.100 Inspiration Cons Copper-20
918 938
9
94 918
9
9
9181
812 844
9
9
2,200 Intercont'l Rubber
No Par
1312 13341 134 1334 *1314 1414 134 1314 14
14
•14
15
1,400 Internet Agricul
No Par
78 I 774 774 7812 7812 7834 79
79 I 78
*77
7712 7712
900 Prior preferred
100
147 149
14418 14812 14378 146 *145 148
14458 145
14518 14518 4.200 Int Business Machines_No par
7614 7758 771! 7912 7638 7938 7518 7734 7614 7 8 7512 7712 28.600 International Cement...No par
6712
6612 68% 104,900 Inter Comb Eng Corp_.No par
6712 6914 6812 70 I 6614 6858 6558 6712 663*
*104 107 *104 109 *104 107 *102 105 *103 106 •103 108
100
Preferred
313 321
32212 32618 15,900 International Harvester....100
312 3154 315 31912 31314 31934 313 319
142 14212 142 142
14212 14212 14212 14212
*142 14214 142 142
900 Preferred
100
10112 103 , 10138 10278 101 10238 100 10112 100 10158 9712 10014 22,700 International Match pref..85
518
54 *5
5
54 54
518 534
514 514
54
514 2.900 Ink Mercantile Marine--100
3558 3612 355* 3684 36
3714 3534 3634 5.900 Preferred
3634 37
3638 37
100
19114 19514 18812 1924 327,400 International Nickel (The).25
17713 18672 18112 191
17212 17512 17334 178
125 125 •120 124
11912 120 *120 122
*121 122 15'12012 122
300 Preferred 6%
100
per share
8 per share
per share
per share $ per share
per share
101 101
101 101
1007 10078 1004 10078 101 101
1.1008g 101
18334 18514 17814 18614 180 182
180 18012 18114 18114
181 184
12538 12538 12538 12538 *12578 126
126 126 *12538 126
•125% 126
5712 5612 574 5618 57
5812 5834 5612 58 1 5714 5814 56
432 43834
427 43312 43012 43413 420 432
430 438
427 427
11812 11812 11818 11818
11812 11812 11812 11812 *118 119 I 118 118
56
56
56
57
56
56
56
56
56
57
56
56
3
3518 354 35
35
38
3538 354 35
3612 38
3618 3714
109 10912 10934 10912 1098 11278 112 112
*109 10912 109 110
11214 11378 112 11434 110 11312 10612 11038 108 11034 10812 10912
1138 1178 1078 1114: 11
1112 104 1078 11
1112 1158
1118
3634 35
36181 35
3512 354 364 3534 3712
3618 3612 36
107 107
10618 10618 10678 10678 *106 10678' 10634 107
107 107
8878 8712 8838: 8718 8818 86% 8818 8658 874
88
8878 88
*812 614 *612 614
618 6181
618 618 *64 614 *613 614
7
*634 714
9 1
8
7
.7
878 87,4 *74 812
934
77
77
•76
764 764 576
7634 764 576
764 7613 7618
.•125 125,2 *125 12512 *125 12513 125 125 *125 12514 12514 1254
4412 4478 4414 4434 4412 4434 4412 4512
4478 4478 4412 45
•eta and seised prices; no sales on tide day. s Ex-dividend/
a Ex-rathts.
PER SHARE
Range Since Jae. 1.
On basis of 100-.hare lots
Lowest
i
$ yet share
9934 Oct 3
163 Feb 20
12312 Aug 31
26 Jan il
810 Jan 10
114 July 18
1218 Jar, 3
3314 Aug 29
1018 Aug 15
80 June 26
834 Aug 15
.Jan 10
2113
10578 Oct 11
69 Feb 20
6 June 19
54 Feb 21
75I4June 12
12114 Jan 27
38 Feb 18
91 Nov 2
29% Oct 23
5912 Aug 11
1934July 17
3212 Jan
104 Jan k
42 Jan 10
98 Jan 6
120 Apr 17
9114 Jan 8
1658 Aug 1
7514J une 12
1114 Jan 9
28 Ai'•• 4
878 Aug 13
55% Oct 2
54 Oct 2
65 June 19
4912 Nov
9818 Oct 23
36% Oct 16
72 June 12
43 Oct 22
10318 Mar 17
15 Mar 23
714June 12
607, Feb 20
10914J une 23
68 June 12
110,4une 12
132 Oct 32
21 Feb
56 Feb
594 Nov
124 Feb 27
11 Sept 26
354 Jan IS
7418July 1
130 Jan 1
12312 Jan 26
40 Aug 1
2912 Aug
8414June 2
4541une 1
9718.1une 1
344 Mar
87 Mar 6
20% Jan 27
95 Jan 4
71 Jan 16
6812June 18
10912 Feb 17
4518June 25
Nit Mar 16
75 June 13
75 June 19
110 Oct 18
10334 Oct 15
7 June 23
1634 Feb 18
2612June 19
391
. Feb lk
6514June 20
2634July 2
4612 Aug 14
112 Oct 10
6134Sept 26
109 Sept 17
31 Jan 26
1121, Feb 20
18938June 19
5 Oct 11
51 Jan 9
23 Jan 5
59 May 25
2312 Aug 2
1638 Aug 6
10884June 13
3014 Jan 31
7014 Feb 6
1004 Aug 17
1514 Sept 25
23 Oct 29
67 Jan 4
644 Feb 21
119 June 19
408* Feb 18
75 Jan 16
29 Jan 16
2184 Feb 20
20 Oct 3
94 Sept 21
9 Feb 18
84 Jan 16
160 Oct 22
90 Feb 18
46 Mar 3
18 Feb 25
8I8July 2
18 Fen 24
4814 Mar 26
114 Jan 16
56 Jan 3
4514 Feb 20
103 Mar 21
22434 Feb 18
13614 Mar 1
934 Jan 3
334Mar 26
3418June 12
7338 Feb 24
11012 Jan 5
Highest
h per share
11612 Mar 8
19414 July 30
134 Apr 3
644 Oct 27
442 Oct 18
!glum., •
594 Oct 10
4034June 1
11434June 1
119 Oct 20
1738June 6
4512May 14
1104. Mar 8
9178Sept 27
9 Jan 1
1512June 4
85 Apr 17
127 MAY 18
4934 Oct 1
10212 Oct I
335g July 3
79 Jan 3
2458 Oct 30
54 Apr 19
i1434Mar 14
5634May 2
109 Apr 19
16112 Oct 17
10212Sept 18
2572May 11
9778 Oct 23
1514 May 16
5712 Nov 1
174 Jan
@FedFRASER