The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Me.
animrittal
Volume 135
firiandeal
New York, Saturday, October I 1932.
Number 3510'
The Financial Situation
O CHANGE is discernible in the business outlook. Quietude remains the ruling condition
throughout the trade world, and indications are that
this will remain the state of things until at least the
Presidential election, which is now only a few weeks
off. The disposition is to think that after that event
there will be a change, and a change for the better,
too, since it is not conceivable that the stagnation,
now so all-pervading throughout all branches of
industrial activity, can become more pronounced
than at present, and hence that the change must be
in the direction of a measurably greater state of
animation.
At all events, hardly any one at present thinks of
embarking upon new ventures in the business world
until the Presidential campaign and the Presidential
election are a thing of the past. The concensus of
opinion is that improvement will then ensue,and this
entirely irrespective of the outcome—whether President Hoover will remain at the helm for another term
of four years or whether he is to be succeeded by his
Democratic opponent, Governor Franklin D. Roosevelt. We ourselves are of that mind. A great element of uncertainty will be removed on the conclusion of the election, and with that out of the way
the present halting tendency everywhere visible in
industrial circles will disappear,signs of new energy
quickly become visible, and, by degrees, trade will
revive; and even though the revival may be slow, it
will be steady and persistent, and assume growing
dimensions as the weeks and months roll on.
Sentiment already is immensely better than it was
a few weeks ago, and this itself will be a powerful
aid in stimulating trade revival, when once conditions are ripe for it by the removal of the political
uncertainty referred to, and which, as a matter of
habit, the whole community is always inclined to
look upon as an event of importance, the outcome of
which it is well to await even though the outcome
itself may not be of exceptional consequence. The
disposition to go slow, moreover, is strengthened
by the fact that Mr. Roosevelt is engaged in making
a tour across the country in which he is setting out
his views at length on the leading public questions
of the day, and these addresses are exciting growing
interest by reason of the more or less radical propositions which he is advocating.
Outside the tariff question there may be little
,lerence in the platform declarations of the two
parties, so that the success of neither one
nor the other can be regarded as involving any menace to the country, as was pointed out by us two
weeks ago, but it is recognized that the President has
N
great power in initiating legislation and that in that
respect it may make a big difference as to whether
Mr. Roosevelt or Mr. Hoover shall be in control
of governmental and legislative affairs for the fouryear period after the coming 4th of March. The
public is well informed as to President Hoover's
policies, and, accordingly, knows what to expect if
he succeeds himself for another Presidential term.
It can only know what course Mr.Roosevelt may take
from his speeches and declarations. And just now
Mr. Roosevelt is very aggressive as well as radical,
and this naturally compels public interest, and it
may affect the Presidential result itself. In this
state of things, ordinary developments in trade and
business attract very little attention, albeit in such
a dull period as now exists they are of very little
consequence anyway. The present week there has
been nothing of any great note that deserves to be
recorded of a business nature. If, on the one hand,
the textile industries display greater quietude, on
the other hand in the steel industry the accounts
speak of a shade more activity, though nothing very
much to boast of. According to the "Iron Age," the
2%
steel mills of the country are now working at 171/
2% the
of capacity, against 16% last week and 151/
week before. The "Age" also enumerates some factors which promise a further enlargement of activity
within the next month or two, and this, of course,
carries comfort for the future, especially if the steel
industry is to be taken as a barometer of industrial
activity generally as in the past.
However, for the moment, as stated, interest centers on the speeches and addresses of Governor
Roosevelt, all the more 80 as his utterances become
more and more aggressive and more and more radical as he proceeds. This week he went so far as to
express a wish to have himself labeled as a "progressive" as distinguished from a conservative.
Speaking at Lamy, N. Mex., in a new appeal to the
Progressives in both parties, he asserted that the
Democratic party was the Progressive party, and
that there was no longer room in this country for two
major parties both of which were conservative. His
precise words were: "We are very certain these days
that the Democratic party is progressive. More and
more it becomes clear that our party represents liberal ideals, and more and more we are convinced that
there is not room in this country for two parties both
conservative. We are going to reconstruct the Government at Washington after the 4th of next March.
We are going to work toward the object of having
prosperity, when it veil ills. appear equally in all
sections of the country."
2208
Financial Chronicle
Of course "prosperity" is what everyone is earnestly praying for, and if at the same time the boon
could be so bestowed as to "appear equally in all
sections of the country," Mr. Roosevelt would be
assured of the support of the great body of voters
in all parties, entirely irrespective of political
.affiliations. As it is, a fear is rapidly pervading
the great industrial centers of the North and East
that to carry the doctrines and views of Mr. Roosevelt into effect through legislative means would
prove mischievous rather than beneficial—that it
would aggravate the existing depression in trade
iather than mitigate or relieve it, and in that sense
the Hoover regime, whose characteristics and attitude are so well known, might have to be preferred
to the more "liberal" and radical attitude of Mr.
Roosevelt.
What the whole country desires is a return to the
normal, in the most expeditious manner possible,
and it is feared that legislative projects of a radical
nature, however well intended, would produce further unsettlement; and it is the possibility that these
public proclamations of Mr. Roosevelt, expressing
.a determination to uproot things, may keep matters
in such a .state of unsettlement that real business
recovery would be out of the question, by making
the business world more nervous. Furthermore, in
the last analysis Mr. Roosevelt is preaching the doctrine of discontent, just as he did back in May last
when he delivered his address at the commencement
exercises of Oglethorpe University. This is calculated not only to excite the masses, especially at a
time when large bodies of the population are without
employment and idle, but must serve powerfully to
make more difficult a genuine solution of the
problem.
It is because of the fear that the Roosevelt policies,
if carried into effect, would obstruct business recovery, rather than promote it, that the Republican
managers claim that Mr. Roosevelt is making votes
for Mr. Hoover rather than for himself. And candor
compels the statement that whereas a short time ago
there appeared a certain degree of plausibility in
the Democratic claim that Mr. Roosevelt will carry
every State in the Union, now the disposition in
many quarters is to think that Mr. Roosevelt, unless
he modifies his attitude, is going to have a hard
struggle to win the Presidency. And certainly it
would be foolish to ignore the possible deep disturbances involved in the carrying out of some of the
schemes to which Mr. Roosevelt is so glibly giving
adherence. A capital illustration of this is found in
his six-point plan for the relief of the railroad situation. We discussed this railroad plan at length in
these columns last week,and will call attention anew
here only to a single point touched upon. In the
course of his remarks, Mr. Roosevelt spoke as
follows:
"Railroad securities in general must not be
allowed to drift into default. The damage done to
savings banks, insurance companies and fiduciary
institutions generally would be too great.
"But, let me make it clear that the extension of
Government credit will be largely wasted unless with
it there are adopted the constructive measures required to clean house. In individual railroads these
turn on the financial conditions peculiar to each
case. In certain situations, where fixed charges impose an unsound over-strain, they must be reduced.
"In general, corrective measures must be adopted
making for a sounder financial structure along the
Oct. 1 1932
lines I now propose to set out. Unless the underlying conditions are recognized we are wasting our
time and our money."
It happens that the railroad industry is the one
great industry that must be safely and securely
placed on its feet before there can be enduring recovery in business generally. In the general collapse
the railroads have been hit beyond all others and
beyond everything else. Mr. Roosevelt recognizes
this, and apparently recognizes also that the Reconstruction Finance Corporation has been created for
the purpose of tiding them over the present severe
emergency. His address on the subject was a wellconsidered one, but he appears to overlook the fact
that not only must the rail carriers be helped over
the present period of great stress, but time must be
allowed them for full recovery. At all events, he
intimates that some drastic measures must be at
once adopted for reorganizing them on a new basis
with the Inter-State Commerce Commission, which
has never been friendly to the railroads, as the judge
as to how and when this readjustment is to be
brought about. He tells us that "the extension of
Government credit will be largely wasted unless with
it there are adopted the constructive measures required to clean house. . . . In certain situations, where fixed charges impose an unsound overstrain, they must be reduced," and "in general corrective measures must be adopted."
Assume business recovery to be under way;
imagine how far it would proceed and how long it
would last if the Government should in some arbitrary fashion, as here suggested, engage in scaling
down fixed charges, because,forsooth, the Commerce
Commission had a notion that such a step might be
advisable. It may be that some systems will have
to be reorganized on a lower basis of fixed charges,
but, if so, that ought to be allowed to come about
in a normal, natural way, and not be left to the determination of the say-so of the Commerce Commission which has no occult power of peering into the
future and should not be allowed to prejudge the case
in any instance. The mere suggestion of a wholesale reorganization in any such high-handed fashion
is enough to send a chill down the spinal column of
the business world, and certainly should Mr. Roosevelt be elected and proceed, in the aggressive manner
which he tells us he means to employ, his course
would not be calculated to aid in establishing business recovery, but would have precisely the opposite
effect, and recovery be held in actual check, with no
chance of bringing about the return of the "prosperity" of which he speaks and which he insists must
be shared in by all parts of the country.
But Mr. Roosevelt's program is very extended,
and involves the establishment also of what is
vaguely known as "social justice" in accordance with
his own ideas of what must be included in the term.
At San Francisco, on Friday of last week, he promulgated his views in that respect, and laid down the
following as the premises on which the scheme of a
new day in the industrial, the social and the economic world must be based:
"The unfeeling statistics of the past three decades
show that the independent business man is running
a losing race. Perhaps he is forced to the wall;
perhaps he cannot command credit; perhaps he is
squeezed out,' in Mr. Wilson's words, by highly organized corporate competitors, as your corner grocery man can tell you.
Volume 135
Financial Chronicle
"Recently a careful study was made of the concentration of business in the United States.
"It showed that our economic life was dominated
by some 600-odd corporations who controlled twothirds of American industry. Ten million small
business men divided the other third.
"More striking still, it appeared that,if the process
of concentration goes on at the same rate, at the
end of another century we shall have all American
industry controlled by a dozen corporations and run
by perhaps a hundred men.
"Put plainly, we are steering a steady course
toward economic oligarchy, if we are not there
already."
It will be perceived that Mr. Roosevelt has visions
of an "economic oligarchy" and means to grapple
with the evil in heroic fashion. He is not to be
swerved from his course if vigorous language to that
end counts for anything. He even speaks with approval of the trust-busting campaign of his illustrious cousin, Theodore Roosevelt, and the cry raised
by the same against "malefactors of great wealth."
Anyone who lived through that period and recalls
how the Mr. Roosevelt of that day made it a practice
to bellow from the White House at Washington
against trusts, with the result of shaking the security
markets to their foundation, and who, finally, after
an interval of four years, during which President
Taft occupied the executive mansion at Washington,
proceeded to disrupt the Republican party by running in opposition to Mr. Taft for a second term,
when he (Theodore Roosevelt) failed to get the Republican nomination for himself, will certainly not
wish for a return of that unfortunate period in the
country's eventful history. Most assuredly the country ought to be spared a recurrence of anything of
the kind on the present occasion, when it is moving
so laboriously through the present critical times.
No panaceas of. that kind will fill the bill on the
present occasion, and it is creating a feeling of solicitude to have them even proclaimed. The country is
not in need of a social or economic revolution. The
single requirement of the business world, after its
long period of suffering, is that it be left severely
alone and that convalescence be allowed to take place
in the ordinary, normal course, and especially that
quack doctors, both in the political world and those
who lay credit to the name of "economists" take
their departure. Governor Franklin D. Roosevelt
will be well advised if he is not too strenuous in his
urge to be considered a progressive of the most radical type, and his chances of election be correspondingly improved.
2209
bank depositors, and a general enhancement of the
prosperity of the railroads and of the many lines of
business which, in turn, depend upon them." Mr.
Coolidge is obviously well qualified for a task of
that kind, not because of his political prominence,
but because of his possession of hard-headed common
sense and his thorough mastery of public questions
of every kind. This enables him quickly to get at
the root of a problem and to deal with it in effective
fashion, in a ready manner and without circumlocution, and to present the points at issue in convincing form and in a way to carry conviction.
Mr. Coolidge is to have among his associates other
men held equally high in public esteem, among them
Clark Howell Sr., publisher of the Atlanta "Constitution"; Alexander Legge, President of the International Harvester Co. and former Chairman of the
Farm Board; Bernard M. Baruch, the former head
of the War Industries Board during American participation in the World War, besides former Governor Alfred E. Smith. The announcement of the
appointment of the Committee was made on Sept. 27
by Walter H. Bennett, President of the Emigrant
Industrial Savings• Bank of-New York. In a letter
of invitation to those who constitute the Committee it was well stated that "the present financial
position of the railroads of the United States is a
matter of grave concern. Collectively the greatest
and most important industry of our country, the railroads have operated in this year at staggering deficits. Only wise and timely Federal aid has averted
the financial breakdown of important systems." It
is also pointed out that "there are many disagree• ments as to causes, many disagreements as to remedies, but unanimous agreement as to the urgency of
some thoroughgoing solution of the problem."
Those extending the invitation included the National Association of Mutual Savings Banks, all the
prominent life insurance companies, the leading fire
insurance companies, besides several of the great
universities, the Railway Business Association, and
the Investment Bankers' Association. Much good
ought to result from the movement,and it is no exaggeration to say that no enduring activity in the business world can be counted upon until the railroads
are once more restored to a plane of prosperity.
IANGES in the condition statements the present
week of the Federal Reserve banks are along
the lines noted in the returns of the previous week,
which means that they are all in the right direction.
First of all there is another large reduction in the
volume of Federal Reserve notes in circulation, which
IN THE meantime comfort is to be derived from is as it should be, considering that National bank
I the steps that are being taken to restore the circulation is being steadily increased under the new
condition of the railroads, not by the railroadsthem- privileges conferred upon the National banks. The
selves, but by those that are most deeply concerned further reduction in Federal Reserve note circulain their welfare and right functioning. Rumors tion the present week is $38,149,000, bringing the outwhich have been current during the last 10 days were standing total of the notes down to $2,720,988,000,
confirmed the present week when it became defi- which compares with $2,831,749,000 Sept. 7, shownitely known that former President Calvin Coolidge ing a contraction in the three weeks since Sept. 7 of
will head a committee which is to be charged with $110,761,000. At the same time there has also been
the duty of examining into all phases of the railroad a further reduction in the volume of Federal Reserve
problem, with the purpose of recommending "a solu- credit outstanding, as measured by the bill and
tion which, with due regard for the public interest, security holdings of the 12 Reserve institutions,
will insure an opportunity for the railroads of the which the present week are reported at $2,231,country to operate on a business basis to the end 806,000 as against$2,248,623,000last week and $2,324,that there may be a stabilization in employment of 484,000 on Aug. 31. The reduction this week, as in
wage earners and in the value of investments made previous weeks, is mainly in the discount holdings,
in behalf of insurance policyholders and savings reflecting reduced member bank borrowing, and
C
2210
Financial Chronicle
which reduction in turn also results from the expansion in National bank circulation, this enabling the
member banks to add to their reserve with the Federal Reserve banks and to diminish their borrowings
from the latter. These discount holdings the present week are down from $359,023,000 Sept.21 to $339,647,000 Sept. 28, and the latter figure compares with
$432,756,000 Aug. 31, since which latter date there
has been a continual shrinkage in the discount holdings of the 12 Reserve institutions. The holdings of
acceptances have changed little during the week,
being reported at $33,604,000 Sept. 28 against $33,652,000 Sept. 21. The holdings of United States
Government securities are also very little changed,
though slightly larger the present week at $1,853,683,000 against $1,851,546,000 last week.
Gold reserves likewise keep increasing under the
continued inflow of the metal from abroad. The further addition to the gold holdings the present week
has been from $2,864,691,000 to $2,878,646,000. As a
result of this increase in the gold holdings concurrently with the reduction in the amount of Federal
Reserve notes outstanding, there is a further slight
increase in the ratio of total reserves to deposit and
Federal Reserve note liabilities combined, which
ratio this week stands at 60.8% as against 60.4%
last week. The improvement in the ratio would have
been larger except that the deposit liabilities increased during the week from $2,315,088,000 to
$2,353,142,000, mainly owing to.the increase in the
reserves of the member banks growing mainly out
of their taking out of additional National bank
circulation.
The amount of United States Government securities held as part collateral for Federal Reserve notes
has been further reduced the present week from
$532,600,000 to $503,800,000. Holdings of acceptances for account of foreign central banks show a
small increase during the week, having risen from
$41,978,000 Sept. 21 to $43,486,000 Sept. 28; a year
ago, on Sept. 30 1931, these holdings for account of
foreign banks aggregated $100,118,000. Foreign
bank deposits, however, with the Federal Reserve institutions were further reduced from $10,702,000 to
$9,864,000. On Sept. 30 last year these foreign bank
deposits footed up $96,135,000.
Oct. 1
1932
outstanding commitments by a clever campaign
directed against the bear contingent or was scared
into covering by its own nervousness. The break the
present week occurred on Monday, when prices badly
tumbled, with no developments, as already stated,
to account for the drop; prices simply moved lower
all through the list, and this, too, on only a moderate
volume of selling, indicating the absence of any
special drive against the market. Since Monday the
course of prices has been irregular, with some rallies
from day to day, but which have been only partly
maintained: There was no new weakness, and the
tone remained good, on the whole, after the Monday
break. Wheat prices remained pretty steady following the recovery towards the close of last week,
but cotton prices, after an advance in the early part
of the week, developed weakness on Thursday, middling upland spot cotton on the New York Cotton
Exchange dropping from 7.50c. on Monday to 7.00c.
on Thursday, and with the quotation yesterday 7.25c.
against 7.35c. on Friday of last week.
One feature that has been stressed during the week
has been that the production of raw steel is proceeding on a somewhat larger scale, the mills of the
United States operating now to 171/
2% of capacity
against 16% last week and 151/2% the week before.
On the other hand, an adverse development has been
a cut in gasoline prices. On Wednesday the Standard Oil Co. of N. Y. reduced the tank-wagon and
service station prices of gasoline 1c. a gallon in the
New York metropolitan district, Long Island, Westchester, Connecticut, Albany and Buffalo. In Boston a reduction of 1y2c. a gallon was made. Other
leading gasoline distributors in the same localities
made similar reductions. The reduction by the
Standard Oil Co. of N. Y. followed recent cuts
throughout a large section of the country east of the
Rocky Mountains. Bond prices have held up well
during the week, especially in the case of the higher
grade issues. Of the stocks on the New York Stock
Exchange list 28 established new high records for
the year during the week and three stocks dropped
to new low levels. The call loan rate on the Stock
Exchange again remained unaltered throughout
the week at 2%.
Trading has been light all week. At the half-day
session on Saturday last the sales on the New York
MONG the changes in corporate dividend decla- Stock Exchange were 1,336,170 shares; on Monday
rations the present week have been the action they were 2,082,970 shares; on Tuesday, 1,399,070
of the American Ice Co. in reducing the quarterly shares; on Wednesday, 1,381,800 shares; on Thursdividend on the common shares from 50c. a share to day, 1,336,420 shares, and on Friday, 1,159,060
25c. a share; at one time the dividend was 75c. a shares. On the New York Curb Exchange the sales
share. The American Can Co. declared the regular last Saturday were 128,397 shares; on Monday,
quarterly dividend of $1 a share on the common stock 204,999 shares; on Tuesday, 155,799 shares; on
payable Nov. 15, but omitted the extra annual divi- Wednesday, 151,879 shares; on Thursday, 147,109
dend of $1 a share paid in November last year and shares, and on Friday, 157,754 shares.
the year before. The Lefcourt Realty Corp. susAs compared with Friday of last week, prices show
pended dividends on the $3 cony. pref. stock, and also moderate declines nearly all around, though with
on the common stock. The Associated Gas & Elec. a number of exceptions to the rule. General ElecCo. suspended dividends on both the $6 cumul. pref. tric closed yesterday at 18% against 195
/
s on Friday
stock and the $6.50 cumul. pref. stock.
of last week; North American at 34% against 36½;
Standard Gas & Elec. at 22 ex-div. against 23; ConHE New York stock market this week did not solidated Gas of N. Y. at 61% against 62%; Pacific
maintain the brisk upward splurge enjoyed Gas & Elec. at 301/
4 ex-div. against 32½; Columbia
last week, but encountered a sharp setback. No Gas & Elec. at 17% against 18; Brooklyn Union Gas
special reason can be cited as the cause of the set- as 82 bid against 82; Electric Power & Light at 111/
2
back, and this confirms the view that the sudden against 12; Public Service of N. J. at 493
/
4 against
large advance last week was due mainly to technical 53; International Harvester at 281/2 against 27; J. I.
conditions growing out of the existence of a large Case Threshing Machine at 541/2 against 54%; Sears,
'short interest which was either forced to cover its Roebuck & Co. at 241/2 against 237
/8; Montgomery
A
T
2211
4 is also lower. Anaconda Copper closed yesterday at
1
2against 14%;Woolworth at 40/
1
Ward & Co. at 15/
4; 12% against 14 on Friday of last week; Kennecott
4; Safeway Stores at 52 against 521/
against 401/
Volume 135
A
Financial Chronicle
Western Union Telegraph at 39 against 39%; Amer- Copper at 1314 against 14%; American Smelting &
2
1
/
8; Phelps Dodge at T
/
2 against 207
1
8; Int. Tel. & Refining at 18/
/
ican Tel. & Tel. at 112% against 1147
2
1
/
9
,
at
2
1
/
10
against
Copper
Pasco
de
Cerro
8;
against
4
/
Tel. at 13 against 13½; American Can at 543
5%.
against
5
at
Hecla
&
Calumet
and
at
against 56%; United States Industrial Alcohol
2 against 33; Commercial Solvents at 11%
1
31/
against 12; Shattuck & Co. at 10 against 1034, and TRREGULAR movements occurred this week on
1 stock exchanges in all the leading financial
2 against 53.
1
Corn Products at 53/
centers of Europe, and net changes were quite un80
at
closed
Dye
yesterday
&
Chemical
Allied
against 82 on Friday of last week; Associated Dry important. The absence of any definite trend at
/8; E. I. du Pont de Ne- New York caused apathy in the markets at London,
2 bid against 87
1
Goods at 8/
4 against 44; National Cash Register Paris and Berlin, according to reports from those
mours at 423
2 against 1434; International Nickel at points. The opinion still prevails that definite
1
"A" at 13/
2against 10; Timken Roller Bearing at 18 against leadership in trade and industrial improvement, as
1
9/
2 against 3214; Gillette well as gains in quotations of securities, will be
1
20; Johns-Manville at 29/
Safety Razor at 1834 against 19½; National Dairy supplied by the United States, and developments
Products at 2114 against 21%; Texas Gulf Sulphur here are followed with keen interest. There are,
at 22% against 23½;Freeport-Texas at 2514 against meantime, few indications of any definite change in
/8; the European situation. Moderate cheerfulness is
26; American & Foreign Power at 10% against 107
8 against 2014; Na- occasioned in the financial centers by slight indica/
United Gas Improvement at 193
/ against 42½; Coca-Cola at 97 tions of business gains in Britain, France and Gertional Biscuit at 403
bid against 1011/
2; Continental.Can at 341/2 against many, but a contrary influence is exerted by the
4 against 58; Gold Dust gloomy political outlook. A settlement was reached
1
33½;Eastman Kodak at 54/
4; Standard Brands at 153
1
4 last Sunday in the strike of 200,000 weavers in the
Corp. at 19 against 18/
/8 against Lancashire mills of England, and work was resumed
8;Paramount Publix Corp. at47
/
against 157
5%;Kreuger & Toll at yi against 14; Westinghouse Wednesday. In the French markets gratification
Elec.& Mfg.at 35% against 35%;Drug,Inc., at 383
4 was expressed regarding the success achieved in the
against 45½; Columbian Carbon at 341/
2 against rentes conversion operation of the Government.
U%;Reynolds Tobacco class B at 34/
2against 35; Money rates remain extremely cheap in the foremost
1
2 against 64%; Loril- centers, and this is still one of the most comforting
Liggett & Myers class B at 651/
lard at 1614 against 16½; American Tobacco at 78/
4 factors.
1
against 773
The London Stock Exchange was fairly steady at
4, and Yellow Truck & Coach at 5/
/
2
1
4.
1
the opening Monday, and prices were maintained
against 6/
The steel shares have also weakened. United throughout the session. British funds were firm,
4 on and in the industrial section good advances were
1
States Steel closed yesterday at 43 against 44/
Friday of last week; Bethlehem Steel at 2334 against registered in textile stocks on the basis of the wage
s, and Vanadium at 17% against 17%. In the agreement in Lancashire. International stocks were
/
243
auto group Auburn Auto closed yesterday at 53/
2 uncertain, with early gains giving way to a down1
against 577
8 on Friday of last week; General Motors ward movement that placed quotations back where
/
4 against 187
1
at 17/
8; Chrysler at 18% against 201/2; they started. Trading was extremely quiet Tues/
Nash Motors at 15/
2 against 17%;Packard Motors day, and price movements were mostly downward.
1
4; Hudson Motor Car at 7/
1
at 334 against 4/
4 against British funds lost a little ground, but remained near
1
4, and Hupp Motors at 37
1
8/
/8 against 4%. In the the high levels recently reached. Industrial stocks
rubber group Goodyear Tire & Rubber closed yester- slowly receded, with a few exceptions among textile
2 against 23% on Friday of last week; shares. Anglo-American trading favorites were un1
day at 21/
B. F. Goodrich at 734 against 8%; United States changed. Dealings Wednesday were again on a
2, and the preferred at 12 small scale, with the price trend slightly uncertain.
1
Rubber at 6% against 7/
against 13.
British funds recovered their losses of the previous
The railroad shares have been no exception to the session. Cables & Wireless was prominent in the
decline. Pennsylvania RR. closed yesterday at 19% share list, the issue advancing, but other stocks
against 20% on Friday of last week; Atchison To- varied only a little. Small losses were recorded in
4against 57%;Atlantic Coast the international group of issues. The trend Thurs1
peka & Santa Fe at 54/
Line at 291/2 against 32½; Chicago Rock Island & day was irregularly downward untl near the close,
4 bid against 9%; New York Central when a frmer tone appeared. Brtish funds did well,
1
Pacific at 9/
4 against 31%; Baltimore & Ohio at 171% but most of the industrial stocks were practically
1
at 29/
against 18; New Haven at 21 against 221/2; Union unchanged. International stocks were quiet and ir4 against 79%; Missouri Pacific at 6% regular. There was a good tone yesterday in quiet
Pacific at 751/
2 against 31%; dealings. Gilt-edged issues and industrial stocks
1
against 8; Southern Pacific at 28/
4; Southern were alike improved.
1
Missouri-Kansas-Texas at 11 against 12/
2 against 13%; Chesapeake & Ohio
1
Railway at 12/
Prices were soft in the opening session of the Paris
at 24% against 257
8; Northern Pacific at 241/
/
8 Bourse, largely as a result of the uncertain political
against 2334, and Great Northern at 187
8 situation in Europe. The downward tendency con/
against 185/s.
tinued throughout, and losses were substantial in
The oil shares have been adversely affected by the many stocks. After a further weak opening Tuesreduction in the price of gasoline. Standard Oil of day, recovery began on the Bourse and a few net
8 against 31% on Friday gains were registered, although most issues remained
N.J. closed yesterday at 311/
of last week; Standard Oil lf Calif. at 25% against virtually unchanged. There was little public buy26%; Atlantic Refining at 16% against 17/
4, and ing, reports said, and turnover was very light. A
1
4. The copper group further downswing developed Wednesday, with
1
2against 14/
1
-Texas Corp. at 13/
$11M1M1110.,
2212
Financial Chronicle
losses large in some issues owing to the thin market.
Bank of France, Suez Canal and Credit Foncier
shares were especially heavy. International issues
also dropped. An improvement in sentiment was
occasioned Thursday by the optimistic speech delivered on international political prospects at Geneva
by Premier Herriot. Prices advanced a little, but
the movement was not sustained. Slight unsettlement prevailed on the Bourse yesterday, and prices
receded.
The Berlin Boerse was dull Monday, and prices
sagged during the greater part of the session. Uneasiness was occasioned by the controversy of the
Reich with France regarding disarmament, dispatches said, and traders were not disposed to increase commitments. Losses were unimportant,however, as there was no great selling pressure. A more
pronounced downward trend developed Tuesday,
only a few issues resisting the movement. Losses
were substantial in most stocks. More favorable
reports from other centers turned the Berlin market
upward Wednesday. Buying was concentrated largely in fixed income securities, but there were also
good movements in stocks. The opening Thursday
was favorable, but heavy offerings of Bemberg Artsilk stock and Siemens Electrical shares unsettled
the market, and small net losses were recorded in
most issues. Prices drifted slowly lower in a dull
session yesterday.
Oct. 1
1932
the latter indicating that • the French transaction
rivaled the recent British conversion scheme in the
degree of success achieved. The offer of 41/
2% rentes
due in 75 years, made to all holders of the 85,692,000,000 francs of 5 to 7% securities called for redemption Nov. 1, was accepted by approximately
971/
2% of the holders, M. Germain-Martin stated.
Cash redemptions on the called issues will not greatly
exceed 4,000,000,000 francs, he added, while cash
subscriptions to the new 41/
2% issue exceeded 2,000,000,000 francs, making it necessary for the Government to find less than 2,000,000,000 francs
to complete the transaction. Cash in the sinking funds will more than suffice for meeting this
demand, and there will be no further issue of
Treasury bonds to cover the reimbursement, the
Finance Minister pointed out. Estimates of the
savings effected by the Government as a consequence
of this operation have been revised upward because
of the success attained. The economy for the Treasury totals 1,320,000,000 francs ($51,744,000) for
1933, a Paris dispatch of last Sunday to the New
York "Times" stated. Balancing of the budget for
next year will be facilitated greatly by this saving.
Premier Herriot described the rentes conversion
as an immense success. The Government, he added,
would continue its program of retrenchment by the
association of other classes as well as rentiers in
the national sacrifices. M. Herriot declared there
exists in France a formidable mass of hoarded
wealth which the Government is determined to bring
forth into honest and guaranteed forms of productivity. Public works construction will be hastened,
he promised, in order to relieve unemployment.
Finance Minister Germain-Martin issued an interesting summary of the reasons stated by those who
demanded reimbursement of their holdings of called
securities. Four main reasons were given—the
world crisis, the international political situation,
uncertainty over the French budgetary situation,
and local difficulties, such as the lack of ready capital in the wine-growing districts. Most of the fears
expressed were groundless, he asserted. The
Finance Minister paid tribute to British finance as
having taken the initiative and pointed the way by
conversion of the immense 5% war loan into 31/2%
bonds. The success achieved in the French operation would bring benefits other than the budgetary
ones, he declared. French industry now should find
capital readily available at lower rates of interest,
which, in turn, should relieve unemployment, it was
maintained. French financial circles were gratified over the success of the transaction, the dispatch
to the New York "Times" indicated. The point was
made in such quarters that the 41/
2% rate fixed by
the French Treasury on the conversion issue will
tend to keep gold flowing toward Paris when rates
on Government bonds in Britain, Holland, Switzerland and the United States are considerably lower.
0STPONEMENT by the German Government
of a 33,050,000-mark payment due the United
States Government on Sept. 30 was announced in
Washington, Wednesday, by Secretary of the Treasury Ogden L. Mills. No surprise was occasioned by
the delay in this payment, which has been foreshadowed by recent reports from Berlin and by the
numerous financial difficulties of Germany. Secretary Mills waived the requirement of a 90-day notification of postponement of the sum, which is equivalent to $7,840,000. The arrangement effected in conversations between Secretary Mills and officials of
the German Embassy provides for a two-year delay
in the payment of 12,650,000 marks on account of the
costs of the American Army of Occupation, and a
two-and-one-half-year delay in the payment of
20,400,000 marks due on judgments by the Mixed
Claims Commission. Secretary Mills indicated in
his statement that the German Ambassador had
broached the subject of postponement on June 30
last, or two days before expiration of the 90-day
notification period. At the suggestion of the Secretary the notice was withheld, assurances being given
that the requirement would be waived later should
Germany decide that it could not meet the payment.
"No such situation exists as to other debtor nations,
and no such conversations have been held with any
of them," Mr. Mills explained later in the day. The
postponement is the fourth effected since expiration
of the Hoover moratorium on intergovernmental
debts, Poland, Latvia and Estonia having previously
HE League of Nations reached the most serious
taken advantage of the provision for postponement
crisis of its 13 years of existence when deleof principal payments in the debt funding agree- gates assembled from 56 member States to attend
ments. Payments from the three Baltic countries the thirteenth annual Assembly, the sixty-eighth seswhich have been postponed aggregate $1,252,000.
sion of the Council, and the several extraordinary
meetings such as the Bureau of the General DisarmaIGHLY satisfactory results of the French bond ment Conference. As these meetings
were opened succonversion operation were announced last cessively late last week and early this week, gloomy
Sunday by Premier Edouard Herriot and Finance predictions were heard on all sides in Geneva.
Minister Louis Germain-Martin, figures supplied by Dangerously difficult situations and problems faced
P
T
H
Volume 135
Financial Chronicle
the Geneva organization, and there were no indications that decisions could be reached which would
maintain the rapidly dwindling prestige of the
League and still prevent threatened withdrawals by
leading countries. In addition to diplomatic problems, the League also faced financial difficulties
owing to the paucity of payments by member States
• of the regular dues. A change in the Secretariat
impends as Sir Eric Drummond has resigned his
permanent post as Secretary-General, and the loss of
this able official is not considered a good augury.
The opening of the Council meeting on Sept. 23, and
of the Assembly on Sept. 26, were viewed in Geneva
with a good deal of anxiety.
Foremost among the problems was the threat of
German withdrawal from the deliberations of the
General Disarmament Conference and possibly from
the League itself. The German Government announced formally, Sept. 14, that it would not attend
the Bureau meeting of Sept. 21, in which the representatives of 19 countries were scheduled to formulate plans for further progress in the General Conference. An even more definite threat of Japanese
resignation was before the League, owing to the dissatisfaction felt at Tokio in regard to the report on
Manchuria prepared by the League fact-finding commission headed by the Earl of Lytton. It was reported from Rome, late last week, that the Fascist
Grand Council will debate in October the question
of submitting the resignation of the Italian Government to the League, Disappointment over the failure of the Geneva organization to solve any of the
major questions submitted was voiced by the Grand
Council last April, and in recent sessions Italy has
been represented by minor officials. The Mexican
Government was said in a Mexico City dispatch of
Tuesday to be contemplating withdrawal as a measure of economy. These rumored and contemplated
defections were counterbalanced in small part by
legislative progress in Buenos Aires with the plan
of the Argentine Government for rejoining the
League.
Cognizance of the thickening difficulties was taken
in characteristically straightforward fashion, Monday, by Eamon de Valera, President of the Irish
Free State, who opened the Assembly meeting in his
capacity as President of the Council. "If the League
is to prosper or even survive, it must retain the support and confidence of public opinion as a whole,"
Mr. de Valera declared. "It is often said that in the
final analysis the League has no sanctions but the
force of world opinion. At the moment that is profoundly true, and it seems to me, therefore, that it is
time for us to ask ourselves what is the attitude of
the outsider, the average man or woman, to the
League and all this activity at Geneva. Friends
and enemies of the League alike feel that the testing
time has come and they are watching to see if the
test will reveal the weakness presaging ultimate
dissolution or the strength that will be the assurance
of a renewal of vigorous growth. There are on all
sides complaint, criticism and suspicion. People
are complaining that the League is devoting its
activity to matters of secondary or very minor importance while vital international problems of the
day, problems which touch • the very existence of
peoples, are being shelved or postponed or ignored."
In answer to such complaints, Mr. de Valera urged
that the League take strong measures, and especially
that it proceed without fear or favor to execute the
2213
Covenant pledges of peace and disarmament. He
also counseled radical action to prevent economic
collapse and to organize "economic life'deliberately
and purposefully to provide as its first object for
the fundamental needs of all our citizens so every
one may at least be reasonably clothed and fed."
Nicolas Politis of Greece, who was elected President of the Assembly, followed Mr. de Valera with
an equally frank speech in which he declared that
war is now going on and that the League must act
to stop the conflicts. "In widespread regions the
horrible evil of war, alas, has reappeared," M. Politis
asserted. "International organization has been
powerless to prevent it. It was set to work immediately to limit its duration and effects, but only mediocre results have been obtained. Therefore, the
League must continue without relaxation until these
fires are extinguished, while constantly keeping its
eyes open, because there are signs of weakening in
the spirit and will for peace."
Delegates of the leading nations, after hearing
these pleas, went from the Assembly meeting to the
Disarmament Conference Bureau, where they were
joined by Hugh R. Wilson, United States delegate.
The Bureau meetings were postponed in this session
until Oct. 10, and it was indicated in Geneva dispatches that a further postponement will then be
effected through calling of a session of the General
Commission, which will require a month's advance
notice. This step was taken after earnest efforts
last week to secure reconsideration by the German
Government of its decision to refrain from further
participation in the work of the Bureau. The German Foreign Minister, Baron Konstantin von Neurath, was in Geneva Sept. 23 and 24, ostensibly to
attend the Council sessions, and British officials
held long conversations with him in an effort to
bridge the differences between the German and
French viewpoints on disarmament. Foreign Secretary Sir John Simon talked with Baron von Neurath
for two hours on Sept. 23, and the German Minister
had a further conference on Sept. 24 with Arthur
Henderson,the British President of the General Disarmament Conference. These efforts were fruitless,
however, and Sir John Simon left for London, Monday, after a short talk with Premier Herriot of
France, who arrived that day.
Although the disarmament differences could not
be aired in the Bureau meetings, owing to the absence
of the Germans, they were discussed pointedly in
public addresses in France and Germany. In the
course of an address in the town of Gramat, Sunday,
Premier Herriot indicated that the Assembly of the
League of Nations is going to study the possibility
of a new covenant guaranteeing security to all nations, including Germany. This agreement, he said,
would automatically end the controversy. "Under
present circumstances," he added, "it is upon full
respect for the Versailles Treaty and the League
Covenant that France intends to found her doctrine
and action." Again quoting the statements of the
German Defense Minister, General Kurt von Schleicher, M. Herriot declared that the German demand
for equality is simply a demand to re-arm. Chancellor Franz von Papen issued a statement in Berlin,
Tuesday, in which he denied flatly that Germany is
seeking to re-arm to the same degree that France and
some other nations are armed. "We aim to balance
armaments by decreasing the general level of armaments," he said.
2214
Financial Chronicle
In the League Council meetings, meanwhile, little
progress was discernible in the several outstanding
questions brought before that body. As the sessions
began, Sept. 23, a decision was reached to pursue
a more energetic peacemaking policy in the boundary
dispute between Paraguay and Bolivia. Praise was
accorded the 19 American republics, which have declared they will not recognize changes in the Chaco
frontier achieved by other than peaceful means. It
was proposed that the Council declare itself ready
to assist such peaceful efforts. This proposal, made
by Dr. Jose Matos of Guatemala, was supported successively by Dr. Salvador de Madariaga of Spain,
M. Joseph Paul-Boncour of France, and Sir John
Simon of Britain, and speedily adopted. Telegraphic reminders were sent the two contestants,
Tuesday, that they are "legally and honorably bound
by their obligations to the League not to have recourse to armed force." A committee was appointed
to follow the developments more closely.
The far more delicate question of the Lytton report on Manchuria came up for consideration last
Saturday, and some plain speaking was indulged in
on this occasion by President Eamon de Valera.
The Irish President rebuked Japan severely for
prejudicing settlement of the Manchurian question
by recognizing Manchukuo while the problem of
sovereignty was still pending. He indicated that
the Council probably would accede readily to a Japanese request for a delay of six weeks in view of
the distance of Tokio from Geneva. "I should," he
added,"be lacking in frankness, both to the Japanese
Government and to the members of the League as a
whole,if I were to recommend to the Council acceptance of this delay without giving expression to regret, which I am sure is felt by the generality of
members of the Council, that before even discussion
of the report of the Commission, Japan has, not only
by recognizing but also by signing a treaty with what
is known as the Manchukuo Government, taken steps
which cannot but be regarded as calculated to prejudice settlement of the dispute." He remarked
pointedly that for almost a year the Council had
scrupulously refrained from uttering any word of
judgment on the merits of the dispute. The Japanese
delegate, Mr.Haruichi Nagaoka, replied merely that
he would abstain from the discussion in the hope
that the entire Sino-Japanese question could be settled at once. The Council overruled protests by the
Chinese delegate, Dr. W. W. Yen, and decided to
delay its discussion of the Lytton report until
Nov. 14. The Lytton report is to be published
Oct. 7.
Attempts to defend the League against the mounting tide of criticism were made in an Assembly session, Thursday, by Premier Herriot of France and
Lord Cecil of Britain. The French Government
refuses to share the pessimism and scepticism now
directed at the League, M. Herriot informed the
gathering. Accomplishments of the League in organizing for peace and discouraging war are too
easily forgotten, he declared. The Premier declined
to discuss the German demand for equality of armaments status, or other pressing problems, declaring
the time and place inopportune. He pointed to the
results of the Lausanne conference and the recent
Balkan conference at Stresa, Italy, as evidence of
the spirit the League has introduced in international
affairs. The world is filled with complex and difficult problems which the diplomats must not hope to
Oct. 1
1932
solve at once, M. Herriot stated. The most important tasks of the League, he said in conclusion, are
the reduction and perhaps abolition of secret diplomacy, and the ending of the domination by certain
Powers of world affairs. Lord Cecil held that such
difficulties as the Chaco dispute between Bolivia and
Paraguay would never have developed if each party
had applied faithfully the principles of the League
Covenant. Much of the world's unrest is due to
Franco-German differences, he said, and here also
he urged strict application of the League principles.
"No machinery of peace will succeed unless there
is a will to peace," the British delegate added. "The
nations must disarm or perish."
HARP disagreement within the British Cabinet
over the tariff policy of the preponderantly
Conservative National Government resulted this
week in the resignations of three traditional free
traders and their replacement by Ministers who favor
the more extensive application of import duties.
The resignations were announced Wednesday, after
the Cabinet decided that the legislation required to
place the Ottawa agreements in effect could not be
postponed until after the world economic conference.
Viscount Snowden of Ickhornshaw, Lord Privy Seal
in the Cabinet and lifelong associate of Prime Minister MacDonald in the Labor movement, led the
revolt against the new Imperial trade policy. Sir
Herbert Samuel,the Home Secretary, and Sir Archibald Sinclair, Secretary of State for Scotland, both
members of the free trade faction of the Liberal
party, also resigned, while a group of eight junior
ministerial officials of similar persuasions joined
the exodus. The places were quickly filled, and
London dispatches indicate that every attempt was
made to minimize the incident and maintain the
national character of the Cabinet. There is every
indication, however, that it will reopen a bitter
controversy.
Stanley Baldwin,former Conservative Prime Minister, was appointed Lord Privy Seal on Thursday
to succeed Lord Snowden. Mr.Baldwin already held
the post of Lord President of the Council, and he
will combine the two offices while accepting the
salary only of one. Sir John Gilmour, who held the
portfolio of Agriculture and Fisheries, was
appointed Home Secretary, and his vacant post was
filled by Major Walter E. Elliot, Conservative and
former Financial Secretary to the Treasury. Sir
Godfrey Collins, a Liberal of the faction led by Foreign Secretary Sir John Simon, was appointed Secretary for Scotland. The Conservative preponderance in the Cabinet was increased by Mr. Baldwin's
acceptance of the post vacated by Viscount Snowden
and the addition of another Conservative party member, while the Liberal representation was unchanged.
Lord Reading was offered the place of Lord Privy
Seal, but this prominent Liberal declined the position
and issued a statement approving the action of the
free-trade Ministers in resigning. In the course of
this shuffle of Cabinet members, Prime Minister
MacDonald is said to have offered to resign, but the
temperate counsels of Stanley Baldwin prevailed and
the Cabinet rift was mended without further disturbance.
Viscount Snowden made his feelings known to the
nation in a bitter and sarcastic letter of resignation,
while a separate letter was submitted jointly by the
two Liberal members. "I cannot longer without loss
S
Volume 135
Financial Chronicle
of all self-respect remain as a member of a Government which is pursuing a policy that I believe is
disastrous to the welfare of the country, which will
lead to the disruption of the Empire, and which is
fraught with great danger to our international relations," Lord Snowden wrote. "I am convinced that
the tariff and imperialist policies which the Tories
are carrying through are more dangerous in their
permanent effect than the crisis of last year, which
was temporary and yielded quickly to drastic treatment." In further expression of his disillusionment
Lord Snowden remarked that nothing in his political
experience "has been more disgraceful and dishonest
than the misrepraentation of the results of the
Ottawa Conference which are being circulated in
the Tory press." Six months' experience of tariffs
has disillusioned every unprejudiced protectionist,
Lord Snowden added,as"none of the blessings which
were to fall upon and fructify the sterile industrial
soil has descended." Lord Snowden and the resigned
Liberal Ministers alike declared that the crisis calling for the creation of the coalition Ministry had
• passed. Prime Minister MacDonald took issue with
them on this point in a brief statement, Wednesday,
declaring that a united front was still necessary and
would be until after the problems of reparations and
war debts had been settled and the world economic
conference held.
WEEK of political uncertainty in Sweden was
followed, Monday, by the formation of a new
Cabinet by the Socialist leader, Per Albin Hansson,
to succeed the People's Party Government of F. T.
Hamrin, which resigned on Sept. 19. The Hamrin
Ministry was an interim regime, formed in August
to hold office until a new lower house of the Parliament could be elected. Swedish politics were unsettled by the disclosure, two months ago, that the
Populist leader, Carl Ekman,had accepted financial
support for his party from Ivar Kreuger. In the
elections for a new lower house of the Riksdag, held
Sept. 18, the Socialists gained 14 seats but fell short
of attaining a majority. The complexion of the new
Cabinet remained in doubt for some days, but the
task of forming a regime was finally entrusted by
King Gustaf to Mr. Hansson, who completed his
Ministerial list Monday and announced his policies
at the same time. The Government, he declared,
will aim at breaking down the customs walls now
separating nations and will follow an active foreign
policy to gain this end. Mr. Hansson also promised
the active co-operation of the new Swedish regime
for the limitation of "military and economic armaments." In the domestic sphere he advocated measures in the interest of agriculture, unemployment
insurance and an improved system of old-age pensions. Associates of Premier Hansson in the new
Cabinet are:
A
Mintster7of Fording:Affairs—Rickard J.
Sandler.
Minister ofJustice—judge Karly Sehlyter.
Minister of Defense—Ivan Vennerstrom.
Minister of Social Welfare—Gustavus
Moller.
Mintster_of Finance—Ernest VIgfrost.
Minister of Communications—Henning
Leo.
of
Minister of Edueation—Arthue Engberg.
Minister of ApricuUure—EdvIn Skold.
Minister of Commerce--Fritiot Ekman.
Ministers Without Portfolio—ThIrsten
NothIn and Professor Osten Unden.
EW arrangements for political representation
of the "untouchable" classes of India in the
Provincial legislatures were made last Saturday by
representatives of caste Hindus and the untouchables, after a series of hasty conferences occasioned
by Mahatma Mohandas K. Gandhi's fast "unto the
death." The agreement reached was quickly com-
N
2215
municated to the British Government at London and
promptly accepted by Prime Minister MacDonald
and his associates. Mr. Gandhi, grown feeble after
149 hours without food, abandoned his fast Monday,
and his slow recovery is considered assured. He began his fast in expressed opposition to the British
electoral plan, imposed only with reluctance after
the Indians were themselves unable to reach agreement in the several Round Table Conferences in
London and in protracted subsequent negotiations.
The London Government made it plain that it would
consider an adjustment of the dispute among the
Indian leaders acceptable.
The renewed consultations instituted last week
among caste Hindus and untouchables in this situation resulted in an agreement whereunder separate
electorates are abandoned. The untouchables are
guaranteed a representation of 148 seats in the legislatures, which is twice the number accorded them by
the British Government. Caste Hindus also promised to take practical steps toward lifting the untouchables from their degraded social position. A
greater number of untouchables will be employed in
the public services, under this arrangement, while
"adequate sums" will be set aside for educating and
raising them from the squalor in which they have
lived for thousands of years. A rapid survey of this
agreement was made last Sunday in London by
Prime Minister MacDonald, Sir Samuel Hoare, Secretary of State for India, and other members of the
Nationalist Cabinet, and it was announced Monday
that the principal terms had been accepted "with
great satisfaction." The end of Mahatma Gandhi's
hunger strike, which followed, was greeted with immense relief in London, where he is regarded as a distinct moderating force in Indian nationalism.
--•-EAVY damage and loss of life were caused this
week •by destructive natural phenomena in
widely separated parts of the world. Porto Rico
was visited by a swirling hurricane, Tuesday, that
destroyed flimsy buildings and ruined crops throughout a wide area. The capital, San Juan, was in the
center of the storm area and deep distress was caused
in this populous section of the Island. Governor
James R. Beverly announced Thursday that the hurricane had killed 212 persons, injured 2,000 and left
245,000 homeless. As a result of the storm exceptional demands were made Thursday on the Banco
Territorial y Agricola de Porto Rico, one of the oldest financial institutions on the Island, and it was
found necessary to close the bank. Relief work was
speedily organized both in Porto Rico and in Washington, and supplies for the sufferers were rushed
by army transport. Before hitting Porto Rico, the
storm lashed the Virgin Islands, where 15 deaths
were reported.
The second destructive phenomenon consisted of
a series of earthquakes which ravished the Greek
peninsula of Chalcide, wholly destroying the villages
of Ierissos, Nea Rhoda, Stratonion, Yomatia and
Stayira. The violent shocks destroyed 2,400 houses
in 20 communities, while 3,000 dwellings were made
uninhabitable. Official estimates indicated that
300 deaths had been caused, while 20,000 were made
homeless. Here also relief work was promptly undertaken, not only by the Athens authorities, but
also by the British Government, which sent the
Eastern Mediterranean fleet to the stricken area
with food and medical supplies.
H
4
2216
Financial Chronicle
HE National Bank of Czechoslovakia on Saturday (Sept. 24) reduced its discount rate from
2%. Rates are 10% in Greece; 8/
5% to 41/
1
2% in
Bulgaria; 7% in Rumania, Portugal and Lithuania;
6/
1
2% in Spain and in Finland;
in Colombia and
in Austria; 5/
1
2% in Estonia; 5% in Italy and in
Hungary; 4/
1
2% in Chile and in Czechoslovakia;
4.38% in Japan;4% in Germany,Norway, Denmark,
Danzig and India; 3/
1
2% in Sweden, Belgium and in
Ireland; 2/
1
2% in France and in Holland, and 2% in
England and in Switzerland. In the London open
market discounts for short bills on Friday were
/
1
2@9-16% as against /
1
2@9-16% on Friday of last
week, and 9-16@%% for three months' bills as
against 9-16@%% on Friday of last week. Money
on call in London on Friday was %%. At Paris the
open market rate continues at 17
/8%,and in Switzerland at 1/
1
2%.
T
HE Bank of England statement for the week
ended Sept. 28 shows a gain of £21,463 in bullion, but as circulation expanded £519,000, reserves
fell of £497,000. Gold holdings now aggregate
£140,397,380 in comparison with £136,159,694 a
year ago. Public deposits decreased £498,000 and
other deposits £1,466,746. The latter consists of
bankers' accounts, which dropped £1,959,594 and
other accounts, which rose £492,848. The reserve
ratio is at 40.46% as compared with 40.24% last
week and 37.13% a year ago. Loans on Government
securities fell off £1,080,000 and those on other
securities £390,894. Other securities include discounts and advances and securities. The former
increased £63,565 and the latter decreased £454,459.
The Bank rate is still the same at 2%. Below we
furnish a comparison of the different items for five
years:
T
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1932.
1931.
1930.
1929.
1928.
Sept. 28.
Sept. 30.
Oct. 1.
Oct. 2.
Oct. 3
Circulations
359.784.000 357.208.682 359,386,483 363.347,695 135,006,755
Public deposits
23,417.000 30,089.090 21,645,391 8,992,562 10,005,941
Other deposits
114,023,631 115,206,969 96,107.056 102,951,580 102,446,179
Bankers' accounts 80.626,456 62.642.289 61,317,731 64,909,909
Other accounts_
33,397.175 52,564,680 34,789,325 38,041,651
Governm't securities 69.917,094 68,975,906 44,536,247 73,786,855 37,110.308
Other securities_ ___ 30,141.782 40,649,328 34,074,346 29,481,955 40,667,733
Dint. & advances 12.069.350 14,773,558 11,916,677 8,507,649
Securities
18.072,412 25,875,770 22,157,669 20,974.306
Reserve notes & coin 55.612.000 53,951,012 57,416,844 26,995,893 52,969.823
Coln and bullion__ _140,397,380 136,159,694 156,803,327 130,343,588 168,226.578
Proportion of reserve
to liabilities
40.46%
37.13%
24.11%
48.76%
4744%
Bank rate
2%
6%
3%
%
6%
a On Nov.29 1928 the fiduciary currency was amalgamated with Bank of England
note issues adding at that time £234,199.000 to the amount of Bank of England
notes outatandlng.
HE Bank of France statement for the week
ended Sept. 23, shows a gain in gold holdings
of 113,852,823 francs. - The total of gold now stands
at • 82,621,794,767 francs, in comparison with 59,346,170,306 francs last year and 48,431,266,181
francs the previous year. A decline is shown in
credit balances abroad of 17,000,000 francs, while
bills bought abroad remains unchanged. Notes in
circulation reveals a contraction of 81,000,000 francs,
reducing the total of notes outstanding to 80,201,750,385 francs. The total of circulation a year ago
was 78,173,081,590 francs and two years ago 73,053,479,195 francs. French commercial bills discounted
and creditor current accounts register increases of
492,000,000 francs and 592,000,000 francs, while
advances against securities decreased 44,000,000
francs. The proportion of gold on hand to sight
liabilities is down to 76.87%, as compared with
57.02% last year and 52.45% the previous year.
T
Oct. 1
1932
Below we furnish a comparison of the various items
for three years:
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Changes
Status as of
Sept. 23 1932. Sept. 25 1931. Sept. 26 1930.
for Week.
Francs.
Francs.
Francs.
Francs.
Gold holdings --Inc. 113,852,823 82,621,794,767 59,346,170,306 48,431,266,18
1
Credit babi. abr'd-Dec. 17,000,000 2,912,524,012 12,363,636,450 6,566,845,304
arrench commeriel
bills discounted_Inc. 492,000,000 3,622,054.793 5.880,429,273 6.188,028,014
bBills bought abr'd No change
2,080,959,121 12,829,950,505 19,027,182,091
Adv. agt. secursDec. 44.000,000 2,752,895,439 2,754,051,284 2,796,453,231
Note circulation. Dec. 81,000.000 80,201,750,385 78,173,081,590
73,053,479,195
Cred. cure. accts..Inc. 592,000,000 27,281,765,683 25,898,883,526 19,288,413,09
7
Proportion of gold
on hand to sight
liabilltiesDec.
0.26%
57.02%
76.87%
52.45%
a Includes bills purchased in France. b Includes bills discounted abroad.
HE Bank of Germany in its statement for the
third quarter of September shows an increase
in gold and bullion of 392,000 marks. The Bank's
gold now amounts to 781,599,000 marks, as compared with 1,374,409,000 marks a year ago and
2,583,625,000 marks two years ago. Increases are
recorded in reserve in foreign currency of 1,680,000
marks, in silver and other coin of 30,793,000 marks,
in notes on other German banks of 2,354,000 marks,
in other assets of 6,654,000 marks and in other
liabilities of 3,141,000 marks. Notes in circulation
reveal a loss of 92,786,000 marks, reducing the total
of the item to 3,690,164,000 marks. Last year circulation aggregated 4,173,886,000 marks and the
year before 4,032,989,000 marks. Bills of exchange
and checks, advances, investments and other daily
maturing obligations register decreases of 169,194,000
marks, 14,990,000 marks, 2,643,000 marks and
55,309,000 marks. The proportion of gold and
foreign currency to note circulation is up to 26.5%
and compares with 40.1% a year ago and 62.2%
two years ago. A comparison of the various items
for three years is furnished below:
T
REICHSBANH'S COMPARATIVE STATEMENT.
Chances for
Sept. 23 1932. Sept. 23 1931. Sept. 23 1930.
Week.
Assets—
Reichsmarks. Reichsmark:. Reichsmark:.
Reiehsmarks.
Gold and bullion__ _Inc.
392,000 781,599,000 1,374,409.000 2,583,625,000
Of which depos.abr'd_
No change
63.353.000
99,551,000 149,788,000
Res've in forn curr_ __Inc. 1,680,000 146,241,000 297,803,000
223,749.000
Bills of exch. & checksDec. 169,194,000 2,689.675,000 3,003,317,000
1,351,767,000
Silver and other coln__Inc. 30,793,000 251,704.000 124,588.000
181,001,000
Notes 000th. Ger. bkeInc. 2,354.000
9,599,000
12.243,000
22,147,000
Advances
Dec. 14.990,000
88,512,000 141.165,000
56,039.000
Investments
Dec. 2,643.000 362,359.000 103,075.000 102,666,000
Other assets
Inc. 6.654,000 794,804,000 933,140,000 677,492,000
LfabUUtes—
Notes in circulation__Dec. 92.786,000 3,690,164.000 4,173,886,000 4
,032,989,000
0th. daily mat. oblig_Dec. 55.309.000 357.960.000 540,291.000
443,237.000
Other liabilities
Inc. 3,141,000 725.741,000 788,232.000
228,334,000
propor.of gold ar for'n
curr, to note circurninc.
0.8%
26.5%
40.1%
62.2%
ATES for money in the New York market showed
further relaxation this week, notwithstanding
the extremely low levels previously prevalent. Restoration of financial confidence in this and other centers is causing an ever greater search for sound employment of funds, and rates tended to drop both in
commercial paper and in time loans against stock
and bond collateral. Call loans on the New York
Stock Exchange were 2% for all transactions,
whether renewals or new loans, but in the unofficia
l
"Street" market funds were available every day
at
1%, or a concession of a full 1% from the official
rate. An issue of $100,665,000 in 91-day United
States Treasury bills was awarded Monday at an
average discount of only 0.23%, which is the lowest
rate achieved since use of the bills was instituted
in 1929. The figure compares with a previous low
record of 0.29%, achieved on a $60,000,000 issue
awarded May 26 1932. Brokers'loans against stock
and bond collateral increased $17,000,000 in the week
to Wednesday night, according to the statement of
R
1
of
Volume 135
Financial Chronicle
2217
5 a week ago. The foreign exchange situthe Federal Reserve Bank of New York. Gold move- to 3.47%
ments at New York in the same period consisted of ation continues essentially unchanged from that of
imports of $7,960,000 and a net decrease of $9,283,000 the past month. Bankers say that London authoriin the stock of the metal held earmarked for foreign ties are frequently compelled to support sterling,
especially in this market, but this is fully expected,
account. There were no exports.
as under normal conditions seasonal pressure conagainst sterling until about the middle of
tinues
EALING in detail with call loan rates on the
January.
The Bank of England and the British
Stock Exchange from day to day,2% was the
in a strong position to defend the pound.
are
Treasury
ruling quotation all through the week both for new
the
action of the market it would
From
present
loans and renewals. The time money market has
has
3.45
been set as the low limit. On
that
appear
shown little change, one transaction of 90-day
traders
hand
other
the
discovered about three weeks
maturity being reported at 1%. Rates are quoted
several
on
occasions
and
ago
previously that for the
nominally at 1@1I/4% for all dates. The demand
least,
at
time
the
being,
authorities are
London
for prime commercial paper has shown some improvehigher
or
rate
approaching
than
any
to
averse
even
ment this week, particularly the last two days.
chance
no
for
is
There
speculation
in the
3.50.
optimore
are
More paper is available and dealers
mistic. Quotations for choice names of four to six currency in either direction. It is because of the
months' maturity are 2@2%%. Names less well comparative steadiness of the rate within this range
known are 2/
2%. On some very high class 90-day that opinions are frequently expressed to the effect
1
that the British authorities propose ultimately to
paper occasional transactions at 134% are noted.
stabilize the pound to gold at around current levels.
Many feel that such stabilization will not be long
RIME bankers' acceptances have shown some im- delayed. Those who believe that sterling will eventprovement in the demand this week, but the ually be stabilized at the old parity of 4.8665 have
offerings are very scarce. Rates are unchanged. perhaps as solid ground for their opinion. There is
The quotations of the American Acceptance Council no possible way of knowing at what rate or when
/8% stabilization may occur.
for bills up to and including three months are 7
8%
7
and
bid,
1%
months,
asked;
for four
bid, 34%
The British authorities on numerous occasions
4% bid and 11 8% have stated that the return to the gold standard is
asked; for five and six months, 11/
asked. The bill buying rate of the New York Reserve undesirable until the war debt problem has been
2% for 91-120 days, and solved. The war debts and reparations are con1
Bank is 1% for 1-90 days; 1/
11/2%for maturities from 121-180 days. The Federal sidered to have been the chief reason for the collapse
Reserve banks show a trifling decrease in their hold- of credit in Europe, including the suspension of the
ings of acceptances, the total Sept. 28 being $33,- gold standard by England. Hence it can be readily
604,000 as compared with $33,652,000 a week ago. surmised that the British authorities will take no
Their holdings of acceptances for foreign corre- steps toward stabilization until these issues have
spondents increased slightly, rising from $41,978,000 been clarified. Aside from the weakness in sterling
to $43,486,000. Open market rates for acceptances due to the pressure of commercial accounts, there
are as follows:
has been a flow of funds from London to the New
SPOT DELIVERY.
York security market since about the end of June.
—180 Days— —150 Days— —120 Days-Bid. Asked.
Bid. Asked.
Bid. Asked.
Funds are also flowing to the London security
1
Prime eligible bills
34
138
11.4
13.1
134
market from many centers, but owing to the super—90 Days— —80 Days— —30 Days—
Bid. Asked.
Bid. Asked.
Bid. Asked.
of funds there for the past several weeks
abundance
Prime eligible bills
Si
18
excessive cheapness of rates there, this
the
to
and
FOR DELIVERY WITHIN THIRTY DAYS.
114% bid
Eligible member banks
not in such volume now as it was some time
is
flow
151% bid
Eligible non-member banks
ago, although world confidence has been entirely
in London as the chief money center. The
restored
this
week
in the
HERE have been no changes
England and the British Treasury continue
of
Bank
Federal
Reserve
banks.
rediscount rates of the
gold and to build up large dollar, franc,
acquire
to
in
now
rates
of
effect
The following is the schedule
for the various classes of paper at the different and guilder balances in order to make their position
the more impregnable. The defense of sterling is
Reserve banks:
conducted through the Exchange Equalization AcDISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
count and precise details are never made public. As
Rate in
stated, the abundance and cheapness of funds
just
Date
Previous
Effect on
Federal Reserve Bank.
Established.
Rats.
Seyt. 30.
makes the London market somewhat less attractive
234
Oct. 17 1931
Boston
334
to foreign funds, while security prices and business
3
June 24 1932
New York
234
3
Oct. 22 1931
Philadelphia
334
prospects on this side by attracting funds, add to
Oct. 24 1931
• 3
Cleveland
33.4
4
Jan. 25 1932
334
Richmond
seasonal pressure against sterling. Call money
the
3
Nov. 14 1931
Atlanta
334
Chicago
June 25 1932
334
234
bills was abundant in London throughout
against
St. Louis
1931
22
Oct.
234
33.4
4
Sept. 12 1930
Minneapolis
334
the week at from M% to 3%,two-months bills are
Oct. 23 1931
Kansas City
3
334
Dallas
Jan. 28 1932
4
334
7-16% to M%, three-months bills M% to 9-16%,
San Francisco
234
Oct. 21 1931
3W
four-months bills 4
3 %
5 % to 34%, six-months bills 4
TERLING exchange is extremely quiet as the to 1%. All these rates are materially lower than
pound is under seasonal pressure, as grain, they were a few weeks ago. The fact that open
cotton, and other import bills accumulate in London. market rates are so far below the Bank of England
5 and rate of 2% has given rise to renewed discussion of
The range this week has been between 3.44%
for
with a the probability of a reduction in the Bank of Engcompared
bills,
bankers'
sight
3.4634
5 to 3.473 last week. The land's rediscount rate. The best informed sources
range of from 3.45%
range for cable transfers has been between 3.44 11-16 however, believe that no further reduction will be
and 3.463/8, compared with a range of from 3.4534 made, as the present 2% rate is the lowest that has
D
p
T
S
2218
Financial Chronicle
ever been posted by the Bank. This week gold
seems to have sold in the London open market at
from 118s. 11d. to 119s. 5d. The Bank of England
statement for the week ended Sept. 28, shows an
increase in gold holdings of 21,463, the total standing at £140,397,380, which compares with £136,159,694 a year ago.
At the Port of New York the gold movement for
the week ended Sept. 28, as reported by the Federal
Reserve Bank of New York, consisted of imports of
$7,960,000, of which $3,386,000, came from Holland,
$1,994,000 from Canada, $1,260,000 from India,
$668,000 from Mexico, $462,000 from England, $60,000 from Switzerland, and $130,000 chiefly from
Latin American countries. There were no gold exports. Gold earmarked for foreign account decreased $9,283,000. In tabular form the gold movement at the Port of New York for the week ended
Sept. 28, as reported by the Federal Reserve Bank
of New York, was as follows:
GOLD MOVEMENT AT NEW YORK,SEPT. 22--SEPT. 28,INCL.
Imports.
Exports.
$3,386.000 from Holland
1,994,000 from Canada
1,260,000 from India
668,000 from Mexico
462.000 from England
None.
60,000 from Switzerland
130,000 chiefly from Latin
American countries
$7,960,000 total
Net Change in Gold Earmarked for Foreign Account.
Decrease $9,283,000.
The above figures are for the week ended Wednesday evening. On Thursday $1,630,700 of gold was
imported, $1,260,300 coming from India; $350,000
from England;$10,400 from Mexico and $10,000 from
Switzerland. There were no exports of the metal on
that day. Gold earmarked for foreign account on
the same day decreased $901,500. Yesterday $1,308,000 of gold was received, $1,079,300 coming
from Holland; $218,700 from Mexico and $10,000
from Switzerland. There were no exports of the
metal yesterday, but gold held earmarked for
foreign account decreased $1,967,500. During the
week approximately $537,000 of gold was received
at San Francisco from Australia and $374,000 from
China.
Canadian exchange continues at a severe discount,
but the rate is more favorable to Montreal than in
several weeks, although the present recovery has been
under way since August. It is stated that the flotation of $60,000,000 Dominion 4% bonds on Tuesday
is partly responsible for the present strength in Canadian. The issue was disposed of promptly at wholesale. It will take care of $40,000,000 Treasury 4s
maturing in New York on December 1, leaving only
$20,000,000 to be transferred to Canada. On Saturday Montreal funds were at a discount of 9%%; on
Monday at 932%; on Tuesday at 932%; on Wednesday at 9 7-16%; on Thursday at 93/
8%, and on
Friday at 9 7-16%.
Referring to day-to-day rates, sterling exchange
on Saturday last was easy in a quiet market. Bankers'
sight was 3.46 3-16@3.463; cable transfers, 3.463t
@3.469'. On Monday sterling was under pressure.
The range was 3.45 3-16@3.45 9-16 for bankers'
sight and 3.45 5-16@3.45 11-16 for cable transfers.
On Tuesday the rates continued easy. Bankers'
sight was 3.45 3-16@3.45%; cable transfers, 3.45%
@3.45 7-16. On Wednesday sterling was off sharply.
The range • was 3.44%@3.44 5-16 for bankers' sight
and 3.44 15-16@3.459' for cable transfers. On
oct. 1 1932
Thursday sterling was steady. Bankers' sight was
3.45 1-16 ®3.45%;cable transfers, 3.45 3-16®3.459/s.
On Friday sterling was firmer; the range was 3.44%
5
@3.46 for bankers' sight and 3.44 11-16@3.46 1-16
for cable transfers. Closing quotations on Friday
were 3.453 for demand and 3.457
4 for cable transfers. Commercial sight bills finished at 3.459';
60-day bills at 3.449; 90-day bills at 3.44
documents for payment (60 days) at 3.4432, and 7-day
grain bills at 3.449. Cotton and grains for payment
3
closed at 3.45%.
on the Continental countries presents
EXCHANGE
no new features. All these currencies are now
inclined to weakness owing to seasonal pressure and
all of course feel the effects of the cessation of tourist
requirements. German marks are of course nominally
quoted, as exchange continues under the strict control of the Reichsbank. The Berlin market is
greatly encouraged since the reduction made in the
Reichsbank rate last week from 5% to 4%. The cut
in the rediscount involved no threat to mark exchange,
which is maintained exclusively by official restrictions on payments abroad. The Reichsbank has
added approximately rm. 13,000,000 to its gold
holdings through purchases in Amsterdam which
was paid for in foreign exchange. The German bank
is also awaiting shipment of considerable gold from
Moscow. The Reichsbank's cut in rediscount rate
is considered primarily an indication of the Cabinet's
policy to help industry by cheapening the cost of
credit. German officials plan to increase the liquidity
of commercial banks by the foundation of two holding
institutions to be called the Industrial and Financial
Corporation and the Amortization Bank. These will
take over frozen and doubtful claims of the commercial banks and also part of the Bourse securities held
by the latter, some of which in view of the necessity
of the financial reconstruction of industrial corporations are unrealizable and uncertain in value. The
new institutions will hold such claims and stocks
until the financial position of the corporations is
cleared up. The creditor commercial banks will
take instead claims against the holding institutions
and will be able to turn these into cash. It is believed
in banking quarters that these new institutions must
add to the pressure on the Reichsbank. as they will
have only meager capital. However commercial
banks of Germany will find it easier to repay their
own debts to the Reichsbank. These debts have
been virtually frozen since the crisis of June, 1931.
French francs are generally easier in tone. The
ease in francs is largely a seasonal matter and causes
no anxiety in Paris or in any other center as the
French position is exceptionally strong. The great
French rentes conversion was successful beyond all
expectations. The Finance Minister said that reimbursement would amount to only 2.5% of the
total of fr. 85,000,000,000 involved, approximately
$3,332,000,000. In French financial circles it is
thought that the rate of 4
fixed by the French
treasury for the conversion issue will tend to keep
gold coming to France as the rates of interest on
other government bonds in Great Britain, Holland,
the United States, and Switzerland are much lower.
It is believed that France is selling much of her earmarked gold in New York to Holland and Switzerland. The Swiss, Dutch, and other central banks
are, it would seem, selling their gold to Paris in
return for the transfer of French earmarked gold in
Volume 135
Financial Chronicle
2219
New York to their accounts. In this way the Bank France in exchange for the transfer by the Bank of
of France is virtually repatriating gold held here France of earmarked gold held in New York. By
without any expense of shipment. Of course, the the acquisition of these earmarked stocks both curother central banks are using the transferred ear- rencies are supported in the New York market. Remarked gold to support their currencies against the cently there have been considerable shipments of•
dollar. This week the Bank of France shows an Holland gold to New York, but according to the
increase in gold holdings of fr. 113,852,823, the total latest dispatches from Amsterdam these shipments
standing on Sept. 23 at fr. 82,621,794,767, which have been made from gold holdings in private banks
borne
compares with fr. 59,346,170,306 on Sept. 25 1931, in Amsterdam. This statement seems to be
of
sheet
the
balance
latest
the
that
fact
the
by
out
the
when
in
000
1928,
June,
and with fr. 28,935,000,
gold
unchanged
Bank of The Netherlands shows an
unit was stabilized.
position of 1,034,000,000 guilders. Spanish pesetas
currency
only
the
about
European
are
lire
Italian
be quite
showing no weakness at this time. The strength in continue to display strength and seem to
exchange
affecting
events
of
course
the Italian unit is due largely to the confidence felt unrelated to the
in the economic prospects of the country and to the in other centers. Strength in pesetas has been a
strongly conservative policy of the Bank of Italy. feature of the market for fully a month. The
Mussolini's government anticipated by a consider- firmness in the unit is attributed largely to confiable time the organization of such an institution as dence in the political outlook and to the conservative
our Reconstruction Finance Corp., when the Italian policy followed by the Bank of Spain. The Scandiauthorities set up the Instituto Mobiliare Finanziare. navian currencies fluctuate within narrow limits and
The only large transaction of the Institute thus far, are affected almost altogether by the fluctuations of
has been to take over the security holdings of the sterling exchange, with which currency they are
Banca Commerciale Italiana, but it intends to be economically allied.
Bankers' sight on Amsterdam finished on Friday
active in industrial financing.
Exchange on Czechoslovakia is one of the minor at. 40.16 against 40.16 on Friday Of last week; cable
2,and commercial
1
2, against 40.16/
1
exchanges in the New York market, but interest transfers at 40.16/
Swiss francs
40.12.
against
46.12,
at
bills
• attaches especially to this unit at this time as the sight
4for cable
at
19.273
and
checks
for
2
1
/
19.27
at
closed
Central Bank of Czechoslovakia reduced its rate of
Copenhagen
19.29.
and
4
19.283
against
transfers,
4
2%. This
1
rediscount on Saturday last from 5% to /
2and cable transfers at 17.95,
1
is a further example of the general trend of money checks finished at 17.94/
2and 18.00. Checks on Sweden closed
1
against 17.99/
rates toward ease in all countries.
2 and cable transfers at 17.75, against
1
The London check rate on Paris closed at 88.09 on at 17.74/
2and 17.78, while checks on Norway finished
1
Friday of this week, against 88.37 on Friday of last 17.77/
2 and cable transfers at 17.45, against
1
week. In New York sight bills on the French centre at 17.44/
2 and 17.48. Spanish pesetas closed at 8.17
1
% against 3.91% on Friday 17.47/
finished on Friday at 3.915
2for cable trans1
4against 3.92 and for bankers' sight bills and at 8.17/
of last week; cable transfers at 3.913
8.19.
2
1
/
and
8.18
against
4. fers
2, against 3.913
/
commercial sight bills at 3.911
Antwerp belgas finished at 13.87 for bankers' sight
XCHANGE on the South American countries
bills and at 13.87/
2for cable transfers, against 13.88
1
continues to be only,nominally quoted. Gayand 13.88/
2. Final quotations for Berlin marks were
1
will
23.78 for bankers' sight bills and 23.79for cable trans- ernmental control of exchange and moratoria
many
but
come,
to
time
2. Italian doubtless continue for some
1
fers, in comparison with 23.80 and 23.80/
bills
4 signs of improvement are apparent in the economic
and
at 5.123
sight
bankers'
lire closed at 5.12 for
2and 5.13. Austrian situation of all the South American countries. Buenos
1
for cable transfers, against 5.12/
2; exchange Aires dispatches state that the Government appears
/
2,against 14.111
/
schillings closed at 14.111
2; on to have taken care ofits most pressing exchange require1
2, against 2.96/
/
on Czechoslovakia at 2.961
of the foreign ex2, against 0.603i; on Poland at ments. There has been an easing
1
Bucharest at 0.60/
of remittance
issuance
freer
with
situation,
change
2,
/
11.24/
2, against 11.24, and on Finland at 1.511
1
Commission,
Control
Exchange
the
by
permits
2. Greek exchange closed at 0.613 for
/
against 1.511
bills. If
export
of
offerings
heavy
recent
by
helped
bankers' sight bills and at 0.61% for cable transfers,
prove of
to
is
expected
it
continues
situation
this
against 0.613.1 and 0.61%.
Argentina.
material aid to the import business of
is a more decided air of confidence in business
There
neutral
the
during
countries
the
XCHANGE on
the
war continues to follow the trends of recent circles in Buenos Aires, and it is believed that
well
country
the
place
weeks, the most conspicuous of which is the ease in coming crop season should
Holland guilders and Swiss francs. Pressure against on the road to recovery. The business improvethe
the neutral exchanges is due in part to seasonal ment now in evidence is considered by bankers
for
situation
general
the
in
factor
promising
factors as import bills for cotton, grain, and other most
to
according
Chile,
of
Bank
The
months.
many
commodities accumulate. It is also due to cessation
has
advices,
t
Departmen
Commerce
States
United
of tourist requirements for exchange on European
the
countries, and so far as Holland and Switzerland in authorized the use of 10,000,000 gold pesos for
exchange
Foreign
necessities'.
of
purchase
foreign
both
of
the
exchanges
particular are concerned,
countries are under the adverse effect of an outward restrictions have curtailed Chilean imports of many
flow of funds for investment in other markets, products for months past.
Argentine paper pesos closed on Friday nominally
notably in Paris, London, and New York, where
opportunities for employment are more attractive. at 25% for bankers'sight bills, against 2531 9n Friday
25.80.
It is understood in banking quarters that Holland of last week; cable transfers at 25.80, against
for
7.20
quoted
nominally
guilders and Swiss francs are finding official support. Brazilian milreis are
transfers,
cable
for
7.25
and
bills
sight
Much of this support is manifested in Paris, where bankers'
is nominDutch and Swiss gold is being sold to the Bank of against 7.20 and 7.25. Chilean exchange
E
E
2220
Financial Chronicle
ally quoted 63/8, against 63'. Peru is nominal at
21.00, against 21.00.
Oct. I 1932
23 11-16; Shanghai at 30%@303', against 30%@
30%; Manila at 49%, against 49%; Singapore at
40%, against 403/
2; Bombay at 26 3-16, against 263I,
XCHANGE on the Far Eastern countries con- and Calcutta at 26 3-16, against 2631.
tinues to follow the trends of recent weeks.
•
The Chinese units are steady, but fractionally easier
HE following table indicates the amount of gold
than at any time in the past three weeks, owing to
bullion in the principal European banks as of
slightly easier quotations for silver. Buying or sell- Sept. 29 1932, together with compari
sons as of the
ing exchange on China is equivalent to buying or corresponding dates in the four previou
s years:
selling silver. The New York official price for silver
Banks of1932.
1931.
1930.
1929.
1928.
ranged this week from 279.' cents to 273' cents an
£
£
£
£
r
ounce, the lower figure generally prevailing. Japan- England__ 140.397,380
138,159,894 158,803,327 130,343,588 188,226,578
France
474,789,382 387,450,129 315,286.822 244.980.304
ese yen have been ruling firmer during the past few Germanya__b 660.974,358
36,912,300
60,061.900 118,452,300 103.112,800 115.587,000
Spain
90,279.000
91,054.000
98,998,000 102,594,000 104,342,000
weeks, though, of course, since no longer anchored Italy
132.190,000
58,220.000
58,525,000
55,807,000
54,093,000
Netherlands
86,223,000
58.594,000
32,549,000
36,920,000
36,243,000
Nat'l Bela.
74,140.000
to gold, the yen is far below dollar parity of 49.85. Switzerland
48,458,000
34,584,000
29,182,000
23,085,000
89,185,000
36,808.000
25,585,000
21,306,000
113,717,000
11,443,000
Last Friday and the week before yen closed at 24. Sweden...
12,750,000
13,459,000
13,450,000
12,7213,000
Denmark
7,400,000
9.538,000
9,580,000
9,586,000
10,098,000
Norway_
_.
7,911,000
8.12e,000
Several times this week the rate went to 24.25. The
8.139,000
8,154,000
8,183,000
Total week- 1,288,035,038 992,538,956 940.088,756
Japanese Governmentfaces a deficit of 58,000,000 yen Prey.
825,742,010
798,220.882
week_ 1.265.028.152 982.775.281 939.8139.029 fax 7A2 AAA
707 na3 857
for the fiscal year 1931-1932. The budget for 1932a These are the gold holdings of the Bank of France as
reported in the new form
of statemen . b Gold holdings of the Bank of Germany are
exclusive of gold held
1933 fiscal year passed in August anticipates a deficit abroad,
the amount of which the present year Is £3,187,650.
of 692,000,000 yen, to be covered by bonds. The
great deficits are largely due to the cost of Manchurian and Shanghai expeditions. General business Cabinet Reconstruction and Imperial Problems
in Great Britain.
in Japan, especially the export trade, gives many
London dispatches have been at some pains to insigns of improvement. During August the export
excess was 63,274,000 yen, a gain of 42,540,000 yen sist that the resignation on Wednesday of Viscount
over August 1931. The export excess since the be- Snowden, Lord Privy Seal, Sir Herbert Samuel,
ginning of the year was 170,861,000 yen, a gain of Home Secretary, and Sir Archibald Sinclair, Secre77,852,000 yen. Meanwhile, imports are being cur- tary of State for Scotland, together with a number
tailed. Japanese bankers are quoted as saying that of Under-Secretaries and other officials, has not
a visible export balance is almost a certainty. The jeopardized the tenure of the MacDonald Governgreat increase in exports is attributed to the fall of ment in Great Britain, and that the program from
the yen. However, the situation gives indications which the retiring members dissented will be carried
that along with inflation, internal prices and wages out notwithstanding their withdrawal. Whether
are rising. The nation's more prominent bankers such is the case remains, of course,to be seen, but the
are issuing warnings that the advantages derived in obvious fact is that the resignations have been
foreign trade through lower yen threaten to be tendered because of the inability of the three members to follow the Cabinet on an important question
wiped out.
Closing quotations for yen checks yesterday were of imperial policy, that they have been accompanied,
243/
8, against 24.00 on Friday of last week. Hong in the case of Viscount Snowden, by a sharp attack
Kong closed at 23%@23 7-16, against 23%@ upon Mr. MacDonald himself, and that they have
come at a moment when a solid Ministerial front
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL
RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
was peculiarly desirable because of some serious
SLPT. 24 1932 TO SEPT. 30 1932, INCLUSIVE.
international situations in which Great Britain is
involved.
Noon Buying Rate for Cable Transfers in New York,
Country and Monetary
Value in United States Money.
Unit.
The statement which Sir Herbert Samuel handed
Sept. 24.1 Sept. 26. Sept. 27. Sept.28.1 Sept. 29. Sept. 30.
to
the Prime Minister on behalf of himself and his
EUROPEAustria,schilling
.139437 .139562 .139770 .139582 .139582 .139582
associat
es based the resignation of the three memBelgium. belga
138842 .138619 .138588 .138711 .138705 .138678
Bulgaria, ley
007200 .007200 .007233
bers upon their disapproval of the Government proCzechoslovakia, krone .029592 .029591 .029593 .007200 .007200 .007200
.029593 .029595 .029594
Denmark, krone
.179550 .179200 .179210 .178946 .179207 .178981
gram regarding the agreements made at the recent
England, pound
sterling
3.462833 3.454083 3.452375 3.451500 3.451708 3.454107
Ottawa Conference. "In our view," the stateme
Finland. markka
.014950 .014958 .014900 .014008 .014916 .104933
nt
France, franc
.039184 .039183 .039180 .039180 .0391138 .039167
declares
, "the whole policy of hard bargaining on
Germany, relchsmark .237985
.237892 .237885 .237864
Greece, drachma
.008010 .008037 .006023 .008023 .006010 .008010
trade between the Governments of the different parts
Holland. guilder
.401557 .401350 .401367 .401538 .401557 .401534
Hungary, pengo
174250 .174500 .174533 .174500 .174886 .174888
the empire is wrong. We regard the continu
of
Italy, lira
.051270 .051266 .051280 .051270 .051270 .051285
ed
Norway, krone
.174415 .174115 .174081 .173923 .173900 .173934
Poland, zloty
unity
and harmony of the British Commonwealth
.111710 .111810 .111730 .111710 .111810 .111810
Portugal, escudo
031433 .031287 .031312 .031200 .031200 .031386
Rumania.leu
005981 .005979 .005964 .005981 .005081 .005983
of Nations as of supreme importance to its
Spain. peseta
own
081807 .081789 .081757 .081771 .081748 .081689
Sweden. krona
177811 .177215 .177289 .177200 .177257 .177192
members and the greatest value to the world at large.
Switzerland, franc
.192837 .192753 .192653 .192721 .192725 .192710
Yugoslavia, dinar- .014888 .014933 .015068 .015100 .015133
That purpose cannot be assisted by conferences such
.015166
ASIAChinathat at Ottawa. In our view it can only be
as
Chefoo tael
.313958 .314166 .313333 .313333 .314375 .312600
imHankow tael
309375 .300583 .308750 .308750 .309791 .307918
periled.
" The process in evidence at Ottawa,as
Shanghai tael
.302031 .302500 .301582 .301562 .302656 .300937
these
Tientsin tael
.323541 .323333 .322918 .323333 .321458 .3204113
members see it, was that of "pressing one part
Hong Kong dollar
.231718 .231406 .230937 .231250 .232031 .230937
of
Mexican dollar
.210937 %210312 .209375 .209887 .209887 .209375
the empire to make unwilling sacrifices in order
Tientsin or Peiyang
that
dollar
.211250 .210418 .209583 .210000 .210416 .209186
another part of the empire may be induced,
Yuan dollar
207918 .207083 .208250 .206868 .207083 .205833
equally
India, rupee
281845 .281550 .261350 .281250 .281350 .281350
unwillingly, to make counter-sacrifices." To
Japan. yen
.238250 .239000 .240825 .240500 .240750 .240500
bring
Singapore (S.S.) dollar .402500 .401250 .401250 .401250 .401250
.400037
NORTH AMER.to the front in the political field differences
of ecoCanada, dollar
.900833 .902804 .904322 .904895 .907499 .004995
.999100 .999112 .999175 .999112 .999100
nomic interest which are due to differing economi
Cuba. Peso
.999100
c
Mexico, peso (silver) .314888 .313000 .309000 .313888 .314168 .313186
Newfoundland. dollar .897875 .899876 .901875 .902500 .905249
conditi
ons "is to invite disagreement between the
.902624
SOUTH AMER.Argentina, peso (gold) .585835 .585835 .585835 .585835 .585835
empire Governments which is likely sooner or later
.586835
.078175 .078175 .075175 .078175 .078175 .070175
Brazil. mitre's
080250 .080250 .080250 .080250 .080250 .060250
Chile. peso
to
become acute. Tighter bonds may mean greater
474188 .4741613 .473333 .474188 .474188 .473333
Uruguay. Peso
952400 .952400 .952400 .952400 .952400 .952400
Colombia. peso
friction."
E
T
Volume 135
Financial Chronicle
2221
• The Ottawa agreements are further attacked on tariff during that period had been made largely dethe ground that they include "an undertaking that pendent upon approval by the dominions, and that it
the Parliament of the United Kingdom will not re- would be seriously handicapped in the economic conduce certain duties on articles from foreign countries ference when the evil effects of tariff barriers generduring a term of years without the consent of the ally came to be discussed. The first fruits of the
Governments of the dominions. Apart from the far-reaching restrictions to which Great Britain then
question of whether the Government was entitled to submitted have now come in the withdrawal from
give such an undertaking, Parliament itself cannot the Cabinet of three of its members. The places have
properly enact a statute of that nature." Referring been promptly filled, Mr. Baldwin himself taking the
to the approaching world economic conference, the post vacated by Viscount Snowden in addition to
statement urges that "it is essential that we should his other Cabinet office of Lord President of the
be free at that conference to enter into arrangements Council; and since the Conservatives, whose protecpracticable and advantageous for the expansion of tionist demands have been in part gratified by the
our trade with foreign countries, which is by far the Ottawa agreements, are overwhelmingly in the malargest part of our commerce. We regard the agree- jority in the House of Commons, the bills necessary
ments, taken as a whole," the statement concludes, to give effect to the agreements can undoubtedly be
"as a danger to the best interest of the empire, a passed.
It is not clear at the moment that the Cabinet
derogation from the powers of Parliament, a barrier
to removing the restrictions on the world's trade, a change will do anything to unite or strengthen the
burden upon the British people, and a probable cause Opposition. It seems likely, rather, to intensify the
division in the Liberal party, where party leaderof increased unemployment and social unrest."
ship
as well as support of the Government are at
personal
letter
to
Mr.
a
Viscount Snowden, in
MacDonald, expressed his regret at the necessity of issue. There is little likelihood, on the other hand,
taking a step which "severs our forty years of close that Viscount.Snowden's retirement will recover for
political association and co-operation in work which him the standing in the Labor party which he lost
has transformed the party features of British poli- when he stood with Mr. MacDonald at the time the
tics," recalled his part in forming the present Na- National Government was formed. It is Mr. Mactional Government, and recited the assurance which Donald himself who will be weakened, partly by the
Mr. MacDonald had given that, as far as he was mere fact of division on an important matter, and
personally concerned, he was not "going to be run still more by the loss of Cabinet members, especially
by any party." "I accepted these assurances in good Sir Herbert Samuel,upon whose support he has been
faith," Viscount Snowden declared. "I am still pre- thus far able to rely. The reconstructed Cabinet
pared to support a National Government which ad- contains 14 Conservatives instead of the former 12,
heres to those conditions. But for some time now, and three National Laborites instead of the previous
indeed from the formation of the second National four, but the former three free-trade Liberals, folGovernment, it has become increasingly clear that lowers of Sir Herbert Samuel, have disappeared, the
the Conservative section of the Government and the three Liberals who remain being followers of Sir
House of Commons is determined to carry through John Simon.
The most important and immediate effects of the
the full protectionist policy, using you and using
us, if we remain in the Government, as instruments change are probably to be looked for in the Disarmafor carrying through the Tory program." A clearer ment Conference, and after that in the League of
intimation could hardly have been given that Mr. Nations. For some time, and particularly since the
MacDonald, in Viscount Snowden's opinion, had Lausanne Conference and the announcement of the
been made a tool of the party upon whose support Anglo-French entente, the opinion has been gaining
his continuance as Prime Minister depends.
ground that any substantial concessions by France
Mr. MacDonald, in a statement issued on Wednes- in the matter of armaments hinged upon equally subday after the resignations had been received, made stantial concessions by Great Britain. On that subno reference to the specific allegations about the ject British opinion, always sensitive, has appeared
Ottawa agreements and the economic conference, but to be divided, with the Conservatives strongly opconfined himself to reiterating the need of a non- posed to any further reduction in Britain's means
partisan Government, and insisting that "purely of defense. It will be recalled that Mr. Hoover's proparty considerations would weaken our national in- posal of a one-third reduction in armaments met with
fluence in the world and would be a blow at the little favor in England, and that when the Bureau
movements now working toward world recovery." of the Conference met at Geneva last week the British
The matters which he cited as imperatively calling delegation did nothing to promote progress.
for attention were "a reparations and debt settleShortly before the Cabinet resignations were anment" and the world economic conference. It was nounced, it was reported that Mr. MacDonald had
at once pointed out that the inclusion of the debts made known his intention to resign, and that he had
was the first public mention of that subject by any been dissuaded only by the arguments of Stanley
British statesman during the present presidential Baldwin, the Conservative leader. As Conservative
campaign in this country, there having been a tacit opposition was the chief obstacle which Mr. Macagreement not to raise the question while the elec- Donald had had to meet in pushing his own advocacy
tion contest was going on.
of radical disarmament, political speculation has
As far as the break in the Cabinet makes a political busied itself with the question whether Mr. Baldwin,
issue, the issue is, of course, that of protection. We who has no desire to see the responsibilities of govpointed out several weeks ago, when the Ottawa ernment devolve upon his party at the present
agreements were announced (see "The Chronicle" juncture, had assured Mr. MacDonald of Conservafor Aug. 27, page 1379), that the agreements defi- tive support for the substantial concessions which
nitely committed Great Britain, for the next five France, it was believed, would demand. The sharp
years at least, to protection, that its treatment of the opposition which developed to Mr. MacDonald's pro.
2222
Financial Chronicle
posal to replace Viscount Snowden by Lord Allen, a
member of the Labor party, and the apparent refusal of the Conservatives to give the new member
such support as he asked for at Geneva, seem to indicate that Mr.Baldwin and his party remain adamant
regarding concessions. If such is the case, and Conservative opposition continues, there is no reason
to expect much practical result from the disarmament negotiations. The situation is complicated by
the German demand for arms equality, with which
there is much sympathy in England, and by the
alleged possession by the French Government of
information showing that Germany has secretly and
indirectly developed armament of various kinds far
in excess of what the Treaty of Versailles allows.
Mr. MacDonald will have need of all the strength
he can muster, not merely for disarmament but also
for his influence in the League of Nations. Discussion of the Lytton report on Manchuria has been
fixed for Nov. 14, ostensibly in order to give the
members of the League time to study the report, but
more,one may suspect,to enable them to decide what
to do in case the report condemns Japan and Japan
thereupon takes steps to withdraw from the League.
It is an open secret that neither France nor Great
Britain desires to do anything that would involve a
break with Japan, and that the effect of the withdrawal of Japan from the League is viewed with
grave apprehension. Meantime the League itself is
in financial straits, with less than half of its budgetary expenditures for the current year covered by
payments of dues from member States and a considerable arrearage to be provided for. If the
Cabinet changes in Great Britain turn out to be only
such incidental ones as occur from time to time in
all Ministries, Mr. MacDonald will be able to face
his international problems with a well-knit Government solidly behind him. On the other hand, if they
are the precursors of other and more important
changes, the British influence in the League as
well as in the Disarmament Conference will be
weakened at a time when it specially needs to be
strong.
Electrical Field Steadily Broadens.
At the recent twenty-fifth annual convention of
the Pennsylvania Electric Association, George B.
Cortelyou, President of the National Electric Light
Association, called attention to the fact that the
industry has in some instances prospered during the
depression.. He added: "The cost of electricity for
residential use has steadily declined over a long
period of years, and now stands at the lowest point
in its history-34% below the 1913 level."
The selling prices of the products of other industries may be down to the pre-war level, but the earnings statements of many of them show deficits instead of profits, a condition which it is hoped may
be remedied during the coming year.
Why is it that the business of generating and distributing electric current should be able to avoid
running into the red when other lines of endeavor
are suffering severely during the prolonged depression? One reason undoubtedly is that the managers
of this particular line of public utility have been
able to render to the public a satisfactory service
which is regarded as indispensable and to supply
the service at gradually decreasing cost to the consumer.
A
Oct. 1 1932
The present generation knows nothing of "tallow"
or "sperm" candles or the pine knots of Lincoln's
boyhood. Wouldn't it be odd for the young people
of to-day to be compelled to adjust in molds strings
for wicks and then pour into the molds hot tallow,
which, when cooled, and thus hardened, would provide the only means of lighting a dwelling aside from
the blaze of the log fire on the hearth?
One needs only to go back to the seventies to vision
college boys pouring over textbooks aided by a student lamp, which was regarded, with its argand
burner,as the height of luxury in illumination. Then
followed illuminating gas with its yellow, flickering,
fan-like flame,and when enterprising Philadelphians
put on the market the Welsbach mantles, affording
a white light as the gas was burned, people thought
the acme of lighting had been achieved.
Electricity's first invasion into the lighting field
came with the old arc lights, which were used to
displace illumination of streets by gas. The Mazda
mantle made a wonderful innovation for the lighting
of dwellings and offices, and the world now considers
its lighting problems solved as it shifts and varies
electrical illumination to suit its purposes both in
degree of intensity and in colors and delicate shades
by means of tinted globes.
That, however, is only one line of development.
The processes of generating electric current and its
distribution have been perfected marvelously. Steam
generating plants have by no means been abandoned,
but they are supplemented by water power, which
is termed "white coal."
The broad and shallow Susquehanna River is particularly adapted in the East for power purposes,
and high and long dams made of concrete and steel
now form great lakes whose waters may be utilized
as generating power by pressing a button. Supplementing these huge generating plants are high-tension lines erected on lands for conveying the current
to distant points where needed, and transferring
stations reduce the high voltage to degrees as required for special uses.
Through the adoption of the latest scientific developments the electric companies have been able to
generate and distribute current at a lower cost, which
permits of the sale of current for power and light
at decreasing prices to consumers. But that is not
the only reason for the possibility of lower prices
for electric service at a period when nearly all prices
were ascending following the war period.
A host of modern improvements have opened wider
and wider markets for electric current. When the
trolley cars drove to the wall the old horse cars and
cable cars, the field of usefulness for electricity was
immensely broadened. Subway railways require
current also not only for power but for illumination
24 hours per day. Numbers of steam railroads have
converted their lines for the use of electric power,
and the movement continues. The telephone and
telegraph companies have need for electric current.
Machinery of factories and great presses of the newspapers are operated by electric current. Moving picture theatres have proved to be good customers of
the electrical generating companies. Improved highways have called for electrical illumination. Outdoor sports on occasion utilize electrical illumination at night, and millions of radios are operated by
electricity. Even upon the water there are electric
launches. All-night electric signs for advertising
are another big source of revenue. Whether man is
Volume 135
at work or at play, in health or in sickness, he turns
to electricity for aid.
With a continuously broadening field, it is little
wonder that electric companies have been able to
combat depression and at the same time lower prices
to consumers.
There is one large field which the companies have
barely scratched. That is the supply of electric current to farms, where it is needed for both power and
light. In the cities the housewives utilize current for
sweeping, washing, ironing, toasting, dishwashing
and many other household purposes, all of which
could be introduced upon the farm for the relief of
farmers' wives. Grinding and churning, now a
drudgery, could, with current, be made a pleasure.
And the farmer, with his threshing, shearing, sawing and sharpening would find great relief by utilizing electricity for power.
According to the reports of the Pennsylvania Electric Association, more attention is now being given
to this undeveloped field. Usefulness of this particular sort of utility is still of wide scope.
Nothing Apparently Can Stop the Increase in
Railway Taxes.
Every person who purchases railway service pays
a share of the taxes upon the railroads, and as a
consequence railway rates—other things being equal
—must rise as taxes increase. In spite of all that
has been said about this situation, there does not
seem to be very much done about it. The difficulty
may be that every owner of real or personal property is enough worried about meeting his own everincreasing tax bills and is perfectly satisfied that
the railways should worry too. The railways indeed
have reason to worry.
The Class I railways in 1931 paid out more than
4303,560,000 in direct taxes, or $2.40 for every man,
woman and child in the United States. Their direct
taxes absorbed 7.3% of their total receipts. Expressed in the simplest language, every person who
paid a dollar to the railroads in 1931 for freight or
passenger service paid 7.3c. indirectly in taxes.
The taxes the railways are required to pass on to
their patrons, however, do not end with their direct
taxes of $303,560,000. Like every other consumer,
the railroads pay indirect taxes, and these become,
still more indirectly, taxes upon their patrons. Expenditures of the railroads for fuel, oil, iron, steel,
lumber and manufactured products must cover also
the taxes levied upon the producers of those commodities.
In 1931 it is estimated that the Class I railways
spent about $695,000,000 for fuel, material and supplies used in railroad operations, in addition to
large sums spent for material and supplies used in
improving and adding to railroad facilities. If it is
true, as has been estimated, that one dollar out of
every three spent by the consumer goes to pay taxes,
then the $695,000,000 which the railways spent as
consumers of fuel, materials and supplies included
over $231,600,000 for indirect taxes.
Individuals pay both direct and indirect taxes.
These taxes form part of their living costs, and the
cost of living in turn helps to determine the amount
of compensation paid to the railway employees. In
1931 the railways paid out more than $2,095,000,000
for labor engaged in railway operation, in addition
to labor employed in making additions and betterments to railway facilities, and a part of that $2,095.-
2223
Financial Chronicle
000,000 expenditure went to cover the taxes which
originally were taken out of the pockets of the individuals and concerns engaged in supplying the requirements of the railroads'1,260,000 employees.
The railroads have no means by which to raise
money except by selling service and borrowing. The
payer of railway rates, therefore,is the one who pays
the railroads' direct and indirect taxes.
Railway operating revenues in 1931 were $4,188,343,237, and operating expenses totaled $3,223,567,417, leaving a net operating revenue from 242,292
miles of railway line amounting to $964,775,820.
Taxes consumed about 32% of this total. Applying
this percentage to the mileage operated it is seen
that railway taxes last year were equivalent to the
net revenue earned by 77,533 average miles of railway. In other words,these 77,533 might as well have
been working for the tax collector as far as railway
earnings from them were concerned. The corresponding totals were 25,000 miles of line in 1911,
29,000 miles in 1916, 55,252 miles in 1928, and 55,626
miles in 1929.
The growth of railway taxes is alarming. The rate
2
of increase in the past 41 years is more than 81/
growth;
of
as
rate
population
great
the
times as
more than twice as great as the rate of increase is
2 times as great as
national wealth; more than 13/
the rate of increase in national income. It is nearly
six times as great as the rate of growth in property
investment of the railways; about three times As
great as the rate of increase in railway gross revenues, and more than five times as great as the rate
of growth of net earnings.
In spite of the fact that all taxes in the United
States have been rising by leaps and bounds, railway
taxes have run ahead of the general trend. During
1931 the Class I railways were compelled to work 27
days alone in order to earn taxes imposed upon them.
This compares with 23 days in 1929,22 days in 1926,
16 days in 1916, and 13 days in 1911. When considered in relation to net earnings, taxes in 1931 absorbed 32c. out of every dollar earned.
Unlike tax payments,the cash dividends of Class I
railways are now lower than they were 20 years ago.
In 1916 the amount the railways paid in taxes was
about half what they paid in dividends. The following table shows the tax payments and the cash dividend payments of Class I railways for various years
since 1911:
Dividends!
Year.
Taxes.
Dividends.
Year.
Taxes.
$98.626,848- —1911 —S397.068,724 S358,516,046_..1925.__$342.020.885
157j13.372___1916_._ 306,176.937 388,922.856 _ _1926_ _ - 399.243.963
376,11O,250..1927___ 411.581,093
389.432,415 --1928--- 430,677,138
301,034,923-1922— 271.573,751 396,682,634 --1929--- 490.125,673
-- 497.024,912
296,127,048 348,5.9 13O,954_123
340,336,686-1924.— 320.429.767 303,660.479_.1931_,_ 328,443,192
Elgin
It will be noted that the dividends were ahead in
1921, but in each of the four years, 1922 to 1925, the
taxes were greater than dividends. While it is true
that during the past six years dividends have exceeded tax payments, the amount of taxes paid to
Federal, State and local governments exceeded by a
margin no means slight the amount of dividends
actually paid to that part of the public which is
represented by the stockholder. In other words,
large dividend disbursements were made during
those years by subsidiary companies exercising control by stock ownership.
It takes profits to provide the stockholders with
reasonable returns on their investments, and at the
same time to maintain the credit of the railroads.
Without profit and credit, railroads cannot maintain
new structures and carry on an adequate and: de-
2224
Financial Chronicle
pendable service. As the matter now stands, the
returns of the railways are too low and the burden
of taxes too great.
The railways have been seeking earnestly for every
means of economy in operating their properties.
They believe that all forms of government should
likewise seek every possible economy in performing
the functions for which they are designed. By this
means the need for taxes would be reduced and the
burden on the railways and other industries might
be lightened.
Too Much Regulation Says United States
Chamber of Commerce.
New Transportation Policy Recommended.
Less Government regulation of railroads was proposed last week by a special committee, under the
chairmanship of F. C. Dillard, of Sherman, Tex., to
the United States Chamber of Commerce, as.a
part of a new transportation policy designed to
strengthen the carriers' economic foundation. It
was ordered by the directorate to be submitted to a
referendum of the Chamber's membership. Urging
that railroad managements be given back much of
the responsibility of which they have been divested
by law and regulation, the Committee said:
The fact of the matter is that wise, economical an efficient manage
ment is not advanced, but hindered by a rigid regulation.
The wisest, most economical and efficient management of railroads,
as well as other business organizations, is where the responsibility
for the operation and the earnings of a property rest upon the management, whose responsibility may not be shifted to some regulative
coMmission.
Specifically, the Committee proposed stabilization of railroad credit by allowing the carriers
greater flexibility in earnings according to business
conditions and adoption of measures which would
enable the roads to adapt their organizations and
operations to economic conditions and give them
"fair opportunity to meet the competition of other
forms of transportation."
The Committee contends that the railroads should
be put in a position to build up reserves by a revision
of the rules of rate-making and repeal of the recapture clause of the inter-State Act, which compels
the roads to turn in to the Federal Treasury all of
their net earnings above 6%. It recommends that
amounts due the Government under the recapture
clause be canceled and that the Inter-State Commerce Commission be required only to keep itself
informed of changes in railroad plant. Retroactive
repeal of the recapture clause "would without any
demand on the Federal Treasury relieve the railroads
of a total liability, as estimated by the Inter-State
Commerce Commission, of about $360,000,000."
The law, the report contends, should be changed
"to provide simply that the Inter-State Commerce
Commission in the exercise of its power to prescribe
just and reasonable rates shall give due consideration, in the exercise of its power, among other factors,to the effect of rates on the movement of traffic;
to the need in the public interest of adequate and
efficient railway transportation service at the lowest cost consistent with the furnishing of such service, and to the need of revenues that will yield a reasonable average return upon the property devoted
to the public service and that will thus enable the
carrier under honest, economical and efficient management, to provide such service."
Discussing the operation of the rate provisions of
the law, the report reads:
Even if the law had operated as expected, it would not have proven
a permanent panacea for all railroads, nor can any law or rule provide
Oct. 1 1932
against all deficiencies that follow absence of available traffic. The
difficulties of most railroads in times of business depression can, however,
be greatly lessened by consistent application of a policy of reducing
fixed debt in favorable times and accumulating proper reserves in
available form to such extent as the situation of each road may permit.
A policy of continual refunding must assume that the railroad transportation system will continue to be required to the extent it is now
developed. The changing conditions of American economic life point
to the probability that the railroad plant will not be extended as in
the past. Of course, maintenance, improvement and refinement must
continue indefinitely. If the argument is correct that material extension of the railroad plant will not be necessary, and if it is correct
to assume that refinements and improvements will be self-liquidating,
then there is the greater need for reducing present bonded indebtedness
with the maturity of each issue.
Reserves should therefore be accumulated for use
to pay interest on bonded debt at times when this
interest cannot be met out of the general revenues
and to meet such agreed proportion of maturing
bonds as may establish and carry out the principle
of reducing funded debt.
Responsibility for setting up reserves should be with the management and not with the Inter-State Commerce Commission, though
the Commission must recognize and make possible their establishment.
It may be argued that unless there is compulsion by law, managements
will not readily set up such reserves, but the general policy of legal
compulsion would be another invasion of the field of managerial prerogative and against such invasion this committee has taken a definite
and unalterable position.
Other recommendations of the report included:
That railroad companies be permitted to engage in transportation
on the waterways and highways on an equal basis with other carriers.
That Federal and State authorities allow prompt establishment
by railroad of new rates to meet competition of other forms:of transportation.
That the long and short haul provisions of the Inter-State Commerce
Commission Act be amended to place upon the rail carriers responsibility for determining whether proposed rates are reasonably cornpen :.,tory.
"The railway industry has largely ceased to be a monopoly," the
report asserts, 'and must retain its position as the principal transportation agency of the country by adapting itself to the conditions
as they exist.
"Railway labor should, in its own interest, recognize these facts and
accept the necessary adjustment of wages, rules and working conditions."
Following closely upon the announcement in New
York that the four major Eastern railways had
agreed to the Inter-State Commerce Commission's
plan for consolidation into four big trunk lines, the
report said:
"Consolidation will doubtless be of assistance in
promoting financial stability of the carriers, but the
fact remains that some of the larger systems, already
advanced on their consolidation programs, have had
to have recourse to the Government for funds to meet
their obligations in the present emergency. Adequate financial stabilization of railroads thus requires other measures in addition to consolidation."
Pointing out that the cost of the Inter-State Commerce Commission's administration for the 46 years
of its existence to June 30 was $125,000,000, the report states that in the last 10 years it has been $69,000,000, or an average of $7,000,000 annually, and
that State Commissions regulating public utilities
and railroads cost $6,000,000 annually from 1923 to
1930. The cost of regulatory procedure to the railroads has therefore been exceedingly heavy.
"The Committee considers that the time has come
for the simplification and economy of regulation
both in the interests of efficiency and relief of burden upon the taxpayers; and that authority should
be handed back to the railroads to manage their
properties except as to matters essential to assure
fair rates or public safety."
Asserting that the railroads eliminated 17,000
local stations from 1917 to 1930, eliminated
93,239,000 passenger-miles between 1926 and 1931,
and otherwise adapted themselves to changed conditions, the report recommends that the roads be
encouraged in this process.
In addition to Mr. Dillard, the members of the
Committee which prepared the report are: C. E.
Bockus, New York City; E. George Butler, Sa-
Volume 135
Financial Chronicle
vannah, Ga.; J. S. Crutchfield, Pittsburgh; Pierpont
V. Davis, New York City; Carl P. Dennett, Boston;
Thomas H. Hanrahan, Buffalo; Dr. Emory R. Johnson, Philadelphia; E. B. Ober, St. Paul; W.L. Petrikin, Denver; H. A. Wheeler, Chicago; R. B. White,
New York City.
James Speyer, in Radio Address, Discusses Program of Citizens' Budget Commission for
Cutting New York City's Budget.
Under the auspices of the Citizens' Budget Commission,
over Station IVOR, on Monday, Sept. 26, from 9:15 to
9:30 p. m., James Speyer, of Speyer & Co., spoke on the
"Commission's Proposals to Cut the 1933 Taxes." The
radio address is one of a series of broadcasts being given
by the Citizens' Budget Commission in order to acquaint the
residents of New York City with the more important features
of the city's budget, which forms the tax burden on its
citizens whether property owners or tenants. The Commission is undertaking an extensive program of constructive
work in behalf of the residents of the city toward reducing
the cost of city government. Mr. Speyer, in discussing the
Commission's proposals, said that It (the Commission) believes that Mayor McKee, in saying $100,000,000 should be
cut from the 1933 expenditures, has not set too high an
objective, and it also believes this goal can be reached with
everybody's co-operation. Mr. Speyer also said:
When Mr. Grimm, Chairman of the Citizens' Budget Commission, kindly
asked me to speak to you, I hesitated a great deal, because I never yet have
spoken to an audience that I could not see and that could not see me,
which, however, I consider of some advantage; but I was anxious to help
the Citizens' Budget Commission.
As I have to talk to you about the budget, I tried first to find out what
the word "budget" means, and I found that it comes from the French
word "la bouchette," which moans a leather bag or valise with its contents, and then you open it and see what you can do with its contents:
The British first used this word at the beginning of a fiscal year to
determine the Government's annual expenses based on its income. Anyhow,
budget•making is a serious and difficult task. In the course of time some
governments have developed the habit of voting expenditures without
being sure of their income. Under pressure of local interests or political
expediency, this has frequently led to extravagance, and the consequence has
been that, especially in times of business setbacks, the income has proved
insufficient and deficits have been piling up.
As you know, the whole world has been passing through a time of
unusual economic depression. While this has been attributed by many to
the consequences of the war, the European Powers have begun to realize
the real causes, and we must leave it to them to find and adopt remedies,
AS they have begun to do.
We can do little to help them; but it is more important than ever that,
even while their depression seems to be ending, we should do everything in
our power to put our own house in best working order. This applies,
naturally, to many matters that have to be settled in Washington; but
every city can do its share towards balancing its budget and towards
hastening the return of onr normal prosperity, which means employment
for the greatest number at fair salaries and wages.
You all know that high direct taxes, while they may become necessary,
never can increase employment—but on the contrary, they may cause more
unemployment.
The City of New York finds itself in a position where its revenues are
not equal to its expenditures, a condition which affects not only the direct
taxpayer but every New Yorker. To meet its expenditures, the City of
New York has practically exhausted all its sources of revenue obtainable
by taxation. Real estate taxation is, of course, the major source of income.
You all realize that while the tax on real estate, in the first place hits
the property owner, he, naturally, tries to recoup as much as possible of
the tax which he has to pay by charging higher rentals to his tenants.
Therefore, whether you rent an expensive apartment on Park Avenue or a
modest flat on a side street, you do pay your part of this real estate tax
In your rent; you also do your part when paying for everything you buy
from your grocer, your butcher, for the dresses you buy, kc., because each
tradesman tries to collect in this way part of the higher taxes or rentals
he pays, due to real estate taxation.
Therefore, the city's plight is demanding the attention of all Its citizens,
and the Citizens' Budget Commission has been formed, not simply to
criticize or abuse those in office; hut for the purpose of working in harmony
with the city authorities. and with the help of experts, making concrete
suggestions how things can be improved. The situation to-day is briefly
this: The annual expenditures for maintenance and operation of our
city and county governments total more than $700,000,000. New York
Is one of the largest corporations in the world. In the United States only
the Federal Government is bigger.
The city's debt has increased and is now in excess of $2,000.000.000, and
its credit standing is now lower than that of a number of other American
cities, such as Boston, Milwaukee, Pittsburgh, St. Paul, Baltimore, Louisville and others. In order to restore the city's financial credit to its
historic high standard. Mayor Megee. realizing that revenues cannot he
increased through taxation, proposes that expenditures for the year 1033
be reduced by $75,000,000 to $100,000,000. Be knows what he is talking
about. It has to he done, and the important question is how shall it be
done, without impairing in any way the city's essential services and without
inflicting hardships on the city's 148.000 employees.
The Citizens' Budget Commission suggests two ways in which major
reductions in New York's expenditures can he made:
First, permanent improvements, like the building of the subway, should
be financed with long-term securities. Every experienced financier will
agree that permanent improvements should, as has been the custom everywhere, be financed by the sale of long-term bonds, with the proper sinking
fund, so that these large capital expenditures should not become as undue
charge of this generation in the budget for any particular year, especially
In the beginning before they have shown their earning capacity. Therefore,
2225
the existing short-time bonds should be replaced at the earliest opportunity
by long•term issues. This, with other changes in the, financing of the
city's independent subway system, would make it possible to eliminate from
the 1933 budget the swat of $50,000,000. The Citizens' Budget Commission
has submitted this change to Mayor McKee, who, it believes, will favor it
in due course.
The second way to reduce expenditures, which the Mayor has suggested,
is a temporary reduction in salaries and wages of city employees during
the present emergency, with the distinct understanding that their Civil
Service standing and their pension privileges are not to be affected
thereby. It is well known that many of our fellow citizens who worked
in factories, shops, offices, &c., are now out of employment, and many of
those who still have their jobs have had to accept substantial reductions
in salaries and wages. The city employees have not suffered in this way.
They have, so far, in large part kept their positions and receive the same
pay as heretofore. Therefore, with the lower cost of living, it does not
seem unfair—especially as they have the benefit of eventual pensions and
their salaries are free from Federal income tax—that they should be asked to
voluntarily agree to some temporary reduction. The men and women
employed in the Department of Education, the Fire and Police Departments, &e., have the respect of all of us for the faithful performance of
their duties, and I feel that we can safely leave it to them to do the
right thing for their city in a crisis like the present one. The temporary
reduction suggested in salaries by the Mayor amounts to about $30,000,000,
and, with the $50,000,000 to be saved as I previously pointed out, would
mean a total reduction in the city's expenditures of approximately
$80,000,000 for the coming year.
In addition to the foregoing means of reduction, expenditures can be
cut in many other directions, and is now being done, in the use and
cost of lighting, fuel, city printing, telephone service, &c. Such savings
will possibly aggregate an additional $10,000,000.
As I had to speak to you about the budget, this talk has dealt largely
with financial matters. But there is something else, and more important,
perhaps, that each of us can do in times like these and thereafter. In
order to prevent, or to be prepared for similar emergencies in the future,
it is the duty, and it ought to be the pleasure of every New Yorker, to
take a personal interest in the affairs of his city. The citizens of New
York have always taken the lead and set an example to the world, in war
and in peace, by helping each other and others, when necessary, in the true
American spirit, and I, therefore, like to close with the words of Abraham
Lincoln, who said:
"I like to see a man proud of the place in which he lives.
I like to see a man live so, that his place will be proud of him."
Every New Yorker wants to see his city well and wisely governed for
the greatest good of the greatest number, and enjoying the best credit in
every way. We always want to feel proud of this great city in which we
live; but every man, woman and child should also want to try to live so
that New York will be proud of everyone who lives here.
F. R. Dick Sees System of Railroad Regulation
Broken Down—Finds Rail Revenues Confiscated—Declares Inter State Commerce
Commission Nullified Transportation Act.
Before the Savings Banks Association of the State of
New York, in annual convention at Rye, N. Y. on Sept. 23,
F. R. Dick, of the investment firm of Roosevelt & Son of
New York, discussed "The Investment Status of Refunding
and Overlying Railroad Bonds." In the course of his
remarks Mr. Dick stated that "if railroad credit is to be
restored clearly net earnings must be increased, but this
increase in earnings must also be accompanied by protective
measures and safeguards as to stability which can, in fact,
be relied upon." Mr. Dick went on to say:
The determination of measures adequate to safeguard railroad credit
so that refunding bonds will possess sufficient safety and stability to qualify
them for investment by trustees and institutions is an extremely difficult
problem. Traffic in this depression has shown a volatility exceeding anything on record in the past. The drastic nature of the present collapse is
due not only to the inadequate margin of safety in the past but also to this
unprecedented collapse in traffic. One point, however, seems clearly
proved and that is, that reliance cannot be placed on a promise of rate
advances to be applied in a future emergency. The practicability of such
measures is not only very doubtful, but it is quite evident that a body such
as the Inter-State Commerce Commission cannot be relied upon to .have
the independence and courage to apply such rates against political and
industrial pressure. As a practical matter, under the present law, the
courts have not protected carrier revenues against confiscation. Future
stability must be provided by measures taken in advance. Margins of
safety must be increased and liquid surplus piled up to take the place of
promises. Would the Transportation Act if properly enforced furnish this
stability? One cannot tell, as in important provisions it has not been
enforced. The four most important aspects of the Transportation Act
are in my opinion the valuation of the carriers, the fixing of a fair rate of
return, the mandate of adjusting rates and charges to permit this return
to be earned, and the accumulation of a liquid surplus in a contingency
fund. These four provisions have largely been nullified. The Supreme
Court held that the Inter-State Commerce Commission valuations were
Inadequate. In regard to a fair return the percentage set by the Inter-State
Commerce Commission was clearly far below that necessary in a hazardous
Industry. (As to this point. I am stating my own opinion.) With respect
to initiating rates to earn this fair return. the Commission's own figures
show that even on their own low standards of value the prescribed return
was not earned In a single year. As a consequence of these three failures
in enforcement of the Act. no reserve fund has been accumulated.
It would seem pertinent to ask that if the Act had been enforced and not
nullified, would railroad credit have been maintained? I will not delay
to discuss certain provisions of the Act that seem faulty, such as the figuring
of the excess earnings for separate years without carryover, and the lack
of provisions to safeguard the contingency fund in liquid and available
form: but even confining myself to the general principles of the Act, this
question is left in considerable doubt on account of the uncertainty as to
the legal value of the roads. and uncertainty as to the point of diminishing
returns on rate advances. If the enforcement of the Act had restored the
safe margin above expenses existing in 1902 the result would have been
unquestionably satisfactory. If the entire burden of restoring the 1902
margin had been placed on freight rates for the years 1925-1929 it would
have called for an increase of 17% in the carriers' revenues per ton-mile.
2226
Financial Chronicle
Oct. 1
1932
trusteesinvestments unless the resulting earnings are effectively protected
Whether freight traffic could have supported this increase and still moved,
gainste,confiscation.
OX' whether the restoration of a margin as safe as this must have awaited
further savings in operation, cannot be answered now, but if obtained in
At the outset of his address Mr. Dick had the following
full, this safe margin of net railway operating income would have amounted
to about 2 billion dollars a year, an increase of about 800 million over
to say:
actual and about 9% on railraod book values. Exact computation is not
The title of may address is "The Investment Status of Refunding and
possible, but a contingent fund of over one billion dollars might have been
Overlying Railraod Bonds." I use the term investment status in acaccumulated. In spite of this uncertainty as to the actual results of an
cordance with the standards of savings banks and trustees to whom safety
enforcement of the Act in letter and spirit it does not seem unduly optiof principal, stability of market and continuity of income are paramount.
mistic to say that the credit collapse would have been less severe and less
From this viewpoint I can in but a few words describe their investment
general and that it would have been confined to weak roads or to roads
status by saying that it is non-existent. Measuring this loss of status by
which had violated conservative principles of management.
decline in price, it is necessary to go to such dangerous investments as the
Whatever the truth as to what would have been accomplished in the way
bonds of the bankrupt German Republic in order to get a comparison. A
of preserving railroad credit by an enforcement of the Act in a different
year ago, last June, when I first testified in the 15% Rate Case, my figures
spirit, it is obvious that our present system has broken down. I do not
showed a decline in price of about 17 points in this class of railroad bonds
believe that the blame for this failure can reasonably be wholly laid upon
and the same number of points decline in the Ge-man Government issues.
the personnel of the Commission. Railroad regulation is an extremely
Since that time, the race downward has continued neck-and-neck, my last
complex matter heavily involved with political forces and sectional prescheck-up in May of this year showing a decline of 63 points in the German
sures of all kinds. Legislation has burdened the Commission with conbonds and 59 points in the rails. During this period such railroad bonds
flicting responsibilities; tradition has emphasized the exercise of its police
have defaulted while still on the legal list, and legal bonds not yet in default
powers rather than the discharge of its guardianship responsibilities. The
have sold as low as eight cents on the dollar.
members of the Commission are appointed for limited term and are loaded
It is true that we are now in the midst of one of the worst depressions in
with burdensome detail. In a democracy, too much cannot be expected
histroy. During these panic days, it has been customary and to some
of a regulatory Commission unless its problems are rendered simple and
degree proper, to speak lightly of our troubles and to prophecy the future
its responsibilities and powers clearly defined.
in glowing terms. Everything must be done to stem the torrent of intense
Broadly speaking, I believe it is in the failure to acknowledge responliquidation which in may ways has accentuated our difficulties. But in
sibility and to recognize limitations of power, that our system of reguspite of the necessity of looking toward the future with hope and courage,
lation has broken down. A separation of the administrative functions of
we cannot construct the foundations for a return of prosperity by hiding our
the Commission from those of guardianship, with a separate personnel,
heads in the sand and pretending that thins are not so bad and that
would undoubtedly be a step in the right direction, but would not in itself
everyting will come out all right automatically. Grave sickness in such
be a complete solution unless definite limitations are placed upon the powers
vital quarters as our railroad industry must be correctly diagnosed in order
of the Commission for, unlike the public utility industry, the railroad
to apply proper remedies. It is on this account that I am speaking to you
industry has been unable, as a practical matter, to protect itself from conopenly and frankly here to-day.
fiscation in the Courts. The compelling necessity for protection against
In discussing the railroad problem in detail, I wish to divide it into two
confiscation is borne out by the entire history of regulation and is illustrated
divisions, one of which I might call the economic side and the other the
in the past decade by the repeated distributions of railroad money to the
governmental side. On the economic side I refer to the economic factors
politically powerful agricultural interests in the West and to others. At
affecting the railroad industry aside from the governmental factors such
no time in this period were earnings in the Western District equal to a fair
as regulation, taxation and the government-subsidized truck competition
return, and not even in regions in the District where earnings over long
and waterways. Unfortunately it is not possible clearly to separate these
periods were as low as 3% and were accompanied by major receiverships,
divisions as no statistics are available to measure accurately the loss of
was there a check to this abuse of power. It is quite evident that power to
traffic to new forms of competition, much less to separate the traffic lost
distribute favors and rate reductions regardless of the earnings of the
through sound economic laws governing costs and character of service, from
industry cannot be controlled under our present system of regulation, and
the traffic lost through uneconomical governmental competition in taxthat if regulation is to succeed, a change must be made so that protection
supported
waterways and highways. Without this detailed analysis, we
against confiscation in the railraod industry can in fact be made effective.
cannot determine the full economic strength of the railway industry, or
Railroad regulation is extremely complicated, and I will not discuss
measure its maximum ability to carry its present load of debt and thus
details as to a system of regulation of rates that will prove non-confiscatory
protect the refunding bonds now under discussion. But in spite of this
and yet fulfill the original purposes of the Act; namely, prevent discrimidifficulty, some measurement of the economic strength of the railroads
nation and unfair profits. but I believe a system to accomplish this purpose
must be made if we are to place a value on these bonds and answer the
can be devised. Under such a system not only will the investor be safestatements
coming from many quarters that in fact this debt cannot be
guarded and railraod credit established on a firm basis, but our whole
supported and therefore must be scaled.
economic structure will be strengthened by the prompt passing on to the
It
seemed to me that if I went back to a period of high railroad credit
public of unsound and uneconomic burdens placed upon the industry.
and ascertained how many traffic units were available to support a dollar
This will be true whether these burdens be burdens of taxation, excessive
of fixed charges, and then compared this figure with the present-day
labor costs, or subsidies to politically powerful shippers. The effective
figure, I might get some light on this question. The period of high credit I
remedy forwasteful Governmental expense lies in the prompt reflection of
chose is 1902 and as an indication of the prosperity of the carriers at that
these expenses in increased taxes. The effective remedy for wasteful Govtime, I will read off the selling prices of some of our well-known railroad
ernmental policies in regard to the railroads lies in a prompt reflection in
stocks:
freight rates.
Chicago Milwaukee & St. Paul
175
Can changes in the law and in its enforcement necessary to accomplish
Chicago & North Western
250
this result be brought about? I do not know. The blackest side of the
Chicago Rock Island & Pacific
172
picture is that at the present time it is not even a subject of discussion. It
139
Delaware Lackawanna & Western
Great Northern
186
would seem that the spectre of Government ownership which I see clearly
Central
New
York
155
menacing
and
more
plainly
before me now, will have to become more
New York New Haven & Hartford
230
visible to the country as a whole in order to force serious consideration of
These prices indicate unquestionably a very satisfactory state of credit.
this question. It is obvious that such measures as are necessary will seem
As a matter of fact, at that time, rails were the premier investment of the
excessively liberal to the railroads, and excessively severe on the shippers
country. Comparing this period with 1931, I get the surprising result
unless the alternative is seen to be even more costly and unpleasant. In
that there was in 1931 just as much traffic available to support interest
regard to railroad service under Government ownership, our shippers are
charges as in the prior period of high credit. But 1931 is admittedly a
well aware of what it means to them, but as yet our taxpayers are unaware
subnormal year and if we transfer this comparison back to 1925-1929, I
of what Government ownership may mean to them. What the cost to the
find 50% more traffic to support charges than in 1902. I will not take time
country would be it is hard to say, but I know what the Canadian National
to give you actual figures. but I will say that as traffic units I have taken
Railways cost Canada last year. The Government has to foot a deficit
both freight ton-miles and passenger-miles, multiplying the latter by three
of $84.000,000. Whether in this country we would do better or worse
—generally accepted standard.
than this. I do not know, but if we apply the cost to Canada to this country
This evidence as to interest charges based on traffic is supported by eviin relation to the gross earnings of our system, we can figure out a corredence based on gross revenues. Here the superiority in 1931 as compared
sponding loss to the American taxpayers of about two billion dollars. But
with 1902, is 37%. So much for the economic side of the railroad picture.
whatever the actual cost of Government ownership to this country would be,
The evidence here does not show a lack of economic strength. Railroad
it would certainly make our present serious problems of taxation and
net
earnings have not been sufficient to maintain credit, because in the
economy doubly difficult.
last analysis net earnings do not depend solely upon traffic or gross earnings,
We are now at a fork in the road; on the one side is the road leading to
but upon a proper adjustment between revenues and expenses. It is in
Government ownership with all its attendant dangers, and on the other
this respect that the weakness in the railraod industry lies. Correction of
Bidets theroad leading to a restoration of credit and a continuance of private
this maladjustment can be brought about by a widening of the margin,
ownership. We are drifting unaware down the road towards Government
either by increasing the charges for service, or reducing the expenses, or a
ownership, and unless an effort is made to reverse our steps it may be too
combination of the two, but it is in these matters, the control of charges
late. I feel that the savings banks can take a most constructive step by
for service and the control of expenses, that the railroads to a large extent
taking a position as to future investment of their fiduciary funds in railroad
are helpless. Here we enter the Governmental side of the problem for in
securities.
regard to the charges for service, or rates, the final power and hence the
The present law defining legal investments has broken down, for under
major responsibility lies with the Inter-State Commerce Commission. In
highly
speculative,
and
it
it many securities qualified that have proved
regard to expenses, likewise, the managements are not free. Taxes are a
may be that a proper standard to protect fiduciary funds may be a standard
case in point; likewise the adjustments of wages, working hours and conwhich at the !resent time few railroad bonds can measure up to. If this
ditions, &c. These matters of expense are subject, either legally or as a
proves t! be the case, it is just too bad, for it would seem undebatable
practical matter, to laws such as the Adamson Law and the Railway Labor
the
railraod industry the savings banks must buy specuthat if, to support
Act. In addition to this, the very quality and extent of the service renlative securities, then in that case they cannot support the industry. It
dered is Governmentally decided, the railways being compelled in many
will not be easy to set up a yardstick such as I am describing, but I believe
cases to furnish a minimum service even at a loss. It is due to these Govthat It can be done. Much study will be required to determine and define
ernmental restrictions on rates, and the Government el restrictions on costs,
all the necessary qualifications, but I believe that the paramount qualifiand practical, that the railroad managements have been handicapped
legal
through
prothat
which
I
have
emphasized—increased
stability
cation is
in securing a sufficient margin of profit to maintain credit. This statement,
tection against confiscation. The other important problems confronting
I believe, can be made without fear of effective contradiction because with
the industry ere not insuperable and through consolidation on a broad
respect to costs under their control, railway managements have been widely
scale they can be greatly simplified. With a limitation in competition
for economies effected.
commended
Economies
in
become
more
simple.
operation
for traffic, rate problems will
It may be asked if this margin of profit was so dangerously low why in
will widen the margin of profit, and this can be further increased by sound
the last 10 years did conservative institutions invest heavily in railraod
Governmental policies in regard to taxation, competion and burdensome
securities at low rates of interest? The answer to this is important in con!restrictions so as to permit substantial decreases in rates. But without
nection with the future credit of our railroads. I do not think it was due
protection against confiscation, the solution of these problems will not in
to a f ilure to recognize that since the passage of the Transport ition Act the
themselves protect your bonds. Of this our experience since 1920 should
profits and earning power in relation to charges of the railroad indue,try
be ample warning. Improvements in efficiency and reductions in unit
had been greatly inferior to other industries such as utilities and industrials.
eosts have exceeded all expectations, but beginning in 1 22, in "Reduced
This
was recognized even prior to the Great War and it was in order to
Rates," these gains have largely been passed on to the shippers and now,
meet the declining credit of the carriers as compared with other industries,
in 1932. We are worse off than we were in 1920. In the next 10 years I
that the Transportation Act was passed. In this Act, and in the interpream extremely confident that the railroads can solve their problems of retations of the Act by the Supreme Court, a limitation of earnings as comducing costs with the same success as in the past 10 years, but even adpared with unregulated industries is both recognized and emphasized. In
mitting this high degree of success, railroad bonds should not qualify for
Volume 135
Financial Chronicle
2227
from a week ago. Speculative issues fluctuated rather
erratically with no definite trend apparent. Among the
weaker issues were the New York Chicago & St. Louis 6%
notes, due Oct. 1 1932, which reflected the uncertainty
regarding avoidance of receivership. These bonds sold last
week as low as 27, recovered to 40 early this week, only to
lose practically all of this gain in the latter part of the week.
Southern Railway development and general mortgage bonds
were weak, probably a reflection of the decline in earnings
and in the price of cotton. The railroad price index was
76.67 on Friday as compared with 76.46 a week ago and
74.88 two weeks ago.
The chief characteristic of the public utility bond market
during the week was the continued good demand for high
grade issues. American Telephone & Telegraph 5s, 1960,
and 1965, Bell Telephone of Pennsylvania 5s, 1948 and 1960,
Consolidated Gas of N. Y. 5s, 1957, Public Service, Electric
& Gas 4s, 1971, all touched their best figures for the year,
which feat was duplicated by many others of the same high
quality. Movements were generally orderly among the
more active bonds, but demand was steady and consistent.
This upward wave has again given rise to rumors concerning
necessary utility financing, and it is almost certain that several new and large flotations will soon be forthcoming.
Second grade and speculative bonds were quite active but
did not get very far in either direction. International Telephone & Telegraph 04s, 1952, dropped 3 points on Monday,
but regained a portion of this loss the following day, which
behavior was typical of many bonds of this grade. Moody's
computed public utility price index on Friday was 87.43 as
compared with 86.77 a week ago, and 85.61 two weeks ago.
The industrial section of the bond market remains highly
irregular, with no definite trend in either direction. A fair
degree of steadiness continues to prevail in the market for
bonds of the heavy industries, such as steel, railroad equipment, cement and building. A number of important
maturities occur in 1933 of companies about which some
question arises as to the method of financing bonds when
due. The policy of Pressed Steel Car in taking care of itt;
5s of Jan. 1 1933, appears the only way out for a number of
organizations. The Pressed Steel Car method of financing
is the offering of 25% in cash and the balance in 1943 5%
debentures. Oil bonds were soft with weakness displayed
in the Shell Union, Phillips and Skelly issues. United Drug
5s broke sharply on the report by the management of
Louis K. Liggett (a subsidiary of United Drug) that its rents
will have to be lowered if financial difficulties and reorganization are to be averted. Rubber bonds were not greatly
changed and for the most part they held not far from their
highs for the year. The Hood bonds, however, displayed
Course of the Bond Market.
considerable weakness. The price index for 40 industrial
Prices of bonds moved in a narrow range during the currept bonds was 83.85 at the end of the week, as compared with
week but with a sufficient number of issues going up frac- 83.72 a week ago, and 82.50 two weeks ago.
tionally to send the price index for 120 corporation bonds
The foreign bond market evidenced a strong tone throughinto new high ground for the year. This index stood at out this week, particularly noticeable in Australian issues
82.50 on Friday, as compared with 82.14 a week ago, and which reached new highs on the move. German governmental, municipal and corporate issues also advanced, while
80.84 two weeks ago.
similar tendency was shown in Finnish bonds, particularly
a
United States Government obligations were literally at a
in the 63s. The Argentine bonds, after the previous week's
on
the outlook for spectacular advance, lost some of the ground gained last
standstill for the week. Interest centers
new Treasury financing. Many feel that the time is ap- week. Little change took place in Polish, Japanese, Brazilproaching for a test of the market with a long term issue, ian and Uruguan bond quotations, while an irregular tendbut those usually well informed consider another short term ency was perceptible in Chilean and Colombian issues. Bids
issue a possibility. The daily price index for 8 long term for Czechoslovakian obligations receded somewhat, notably
for the City of Prague 73/28. Italians were up, as were
Treasury bonds finished the week on Friday at 101.67, as
Norwegian and Danish loans. Moody's bond yield average
compared with 101.66 a week ago, and 101.55 two weeks ago. for 40 foreign bonds finished the week at 10.13%,as compared
Pronounced strength in high grade issues was the feature with 10.13% a week ago, and 10.48% two weeks ago.
of the railroad bond market for the week. Atchison gen.
The feature of the municipal bond market during the week
mtge. 4s, 1995, established a new high price for the year at was the increased number of new bond offerings. The
9434 on Thursday; Union Pacific 1st mtge. 4s,.1947, at 984 general market was strong, particularly among the prime
reports of the Reconstruction Finance Corporaon Thursday; and Norfolk & Western 1st eons. mtge. 4s, issues. The
just released for publication show an increasing number
tion
1996, at 963 on Thursday. Bonds of slightly lower in- of large cities obtaining assistance in relief work.
vestment quality were moderately strong but did not, except
This week, besides the regular tables of Moody's computed
in a few cases, reach earlier established high prices. Dela- bond prices and bond yield averages, a complete list of bonds
ware & Hudson 1st and ref. mtge. 4s, 1943, were an excep- used in computing these indexes is shown below. This list
tion, selling at 87X, a new high for the year, up 1% points is published each quarter.
the "Dayton-Goose Creek" Case the Supreme Court describes this limitation as follows:
"By investment in a business dedicated to the public service the owner
must recognize that, as compared with investment in private business,
he cannot expect either high or speculative dividends but that his obligation
limits him to only fair or reasonable profit,"
but in the same decision it describes the railroad as being "under the
fostering guardianship and control of the Commission"—in other words,
this limitation on profit was coupled with a guardianship or protection.
Subsequent to this decision the Inter-State Commerce Commission, in
Its so-called "O'Fallon" Decision, commented on the limitations mentioned
in the above paragraph in the following words of assurance to investors:
"If such limitations are to be imposed, plainly stability of income and
return is a prime requisite. To say nothing of the disastrous effect upon
the business and commercial work!, violent fluctuations from heights of
prosperity to depths of poverty are railroad conditions utterly inconsistent
With the necessary attraction of private capital.
It was this realiance upon a stable return under the fostering care of the
Government that moved investors and constituted the corner stone of
railroad credit.
It would take too long to review the decisions of the Inter-State Commerce
Commission over the last decade having to do with this limitation on railroad earnings or the various assurances of the counter-balancing prime
requisite—stability. In many of the attempts of the carriers to obtain a safer
margin or to maintain the then margin, the denials of the Commission
generally implied a promise or protection later on if necessary. In the 5%
Case in the Western District in 1925, the advance was denied because
there was no emergency requiring it at the time. The heavy slash of grain
rates in the Western District in 1930 was coupled with the assurance that
if it appeared necessary later on, the charges would be increased. During
this period, though the railroads never earned the adequate return on their
value which seemed to have been promised in the Transportation Act,
nothing was done by the Commission to furnish protection for possible
lean years ahead. In spite of arguments for a different policy the Commission made its choice at that time and committed itself, as I understand
the decisions, to extending protection to the railroads at such time when it
should become necessary.
It was the vigor of these assurances which explained the high degree of
the then existing railroad credit and the completeness of the collapse of
these assurances when the test came explains the completeness of the
credit collapse.
I have touched but briefly upon these phases of regulation over the last
10 years but I must emphasize their importance as these assurances, combined with the fundamental nature of the industry explain why institutions
such as I am addressing to-day invested their funds in bonds which otherwise were inadequately secured. These bonds were bought with no idea of
speculation. The low interest returns prove this. The prime requisite
Was stability, which it was believed would be maintained in accordance
with the provisions of the Transportation Act and the repeated assurances
of the Commission as to further protective adjustments when necessary.
I do not wish to minimize the difficulty of making good these assurances
of guardianship during a crisis. Probably few of us before the depression
recognized the practical difficulties which would have to be faced. But
what has shaken confidence so greatly, however, is not so much the difficulty of furnishing protection but the Commission's apparent refusal to
admit any measure of responsibility for existing conditions and the lack of
any noteworthy attempt to find a means in difficult circumstances to carry
out its commitment. I have not forgotten the support of the carriers by
the Government through loans from the Reconstruction Finance Corporation, but even here there is an appearance of reluctance; indeed, this very
word was used in connection with an important loan, with disastrous
results in the security market. Moreover, in public statements in important quarters the support of the railroads is emphasized more in relation to our banking structure than in justice to the security holders, who
are thus left in doubt as to the continuation of this support should the
banking situation improve so as no longer to require it.
This analysis of the foundations of rallraod credit is of futher importance
as a guide to the steps which must be taken in order to restore confidence
and credit. Some hope that, if earnings return to pre-depression figures.
credit automatically will be restored and that such institutions as are
represented here will again buy railroad bonds. It seems obvious to me
that your institutions will not do so. An Investment mistake evidently
has been made. To explain a second time a repetition of the same mistakes will be difficult, when the inadequacy of the assurances upon which
reliance has been placed has been so dramatically illustrated.
2228
Financial Chronicle
Oct. 1
1932
BONDS USED IN MOODY'S BOND PRICES AND
BOND YIELD AVERAGES
RAILROADS.
INDUSTRIALS.
Aaa
Aa
' Ana
Atch., Top. Sz S. Fe gen. 4s, 1995
As
Atlantic C. L. 4a, 1952
American
Radiator
434s,
1947
Atlantic Refining 5s. 1937
Ches. & Ohio 439s. 1992
BaIto. & Ohio 4s. 1948
General Electric 3395, 1942
Baldwin Locomotive 5s, 1940
Chi.. Bur. & Quin. 45, 1958
Ches. & Ohio 439s. 1993
General Petroleum 5s, 1940
Gulf Oil of Pa. 55. 1947
Chi. Union Sta. 434s, 1963
Chi., R. I. & l'ac. 4s. 1988
Illinois Steel 434s, 1940
Humble Oil Sr Ref. 5s. 1937
New York Cent. 334s, 1997
Chi. & West. Ind. 4s. 1952
Liggett & Myers Is. 1951
Jones & Laughlin Steel 5s, 1939
Norfolk & Western 4s. 1996
Kansas City So. 3s, 1950
Procter & Gamble 439s, 1947
Kresge (S. S.) Co. 5s. 1945
Ore.-Wash. RR. & Nay. 4s, 1961
Northern Pac. 3s, 2047
Standard Oil of N. J. 5s. 1946
Lehigh Coal & Nay."A" 4395, 1954
Penna. 434s. 1965
Southern Pac. 0. L. 434s. 1977
Standard Oil of N.Y.434s, 1951
Sauda
Falls 5s, 1955
So. Pac.-S. F. Term. 45, 1950
Southern Rwy. Is. 1994
Tenn. Coal, Iron RR. 5s, 1951
Sinclair Cr. Oil Pure. 534s, 1938
Union Pacific 4s, 2008
Virginian Ry. Is. 1962
Union Gulf Corp. Is, 1950
Swift
&
Co. 5s, 1944
A
Bea
A
Baa
B. & 0.-9. W. Div. Is, 1950
Atlantic C. L., L & N 45. 1952
Amer. Smelt. & Ref. 5s. 1947
Abraham
& Straus 534s, 4543
Chi., Mil. & St. P. 4s, 1989
Boston & Maine Is, 1967
Aluminum Co. of Am. 5s. 1952
Dodge Bros. 6s, 1940
Chi. & N. Western 4s, 1987
Chesapeake Corp. Is, 1947
Cudahy
Packing 5s, 1946
Goodyear Tire & Rub. 55, 1957
Chi. & West. Ind. 534s. 1962
Erie gen. 4s, 1996
Inland Steel 4398. 1978
Lorillard (P.) Co. 5s, 1951
C. C.. C. & St. Louis 45, 1993
Great Northern 439s, 1976
Lorillard (P.) Co. 7s, 1944
National Steel 55. 1956
Erie p. 1. 45, 1996
Lehigh Valley 4s, 2003
National Dairy Prod. 534s. 1948
Pillsbury Flour Mills 68, 1943
Louisville & Nash. 934a. 2003
Missouri-Kaa,-Tex. Is, 1962
Sinclair Pipe Line 5s, 1942
Purity Bakeries Is, 1948
Penna. 4395. 1970
Northern Pacific 434s. 2047
Oil
Sun
534s,
1939
St. Joseph Lead 539s, 1941
Reading"A," 439s, 1997
Southern Pacific 434s, 1981
Texas Corp. 55. 1944
Sinclair Oil "B," 639s, 1938
Southern Pac. 4s, 1955
Western Maryland 4..s, 1952
Tobacco Products 634s, 2022
Wilson & Co. 6s, 1941
PUBLIC UTILITIES.
FOREIGNS.
Asa
As
Aa
Bell Tel. of Pa. Is, 1960
A
Amor. Tel. & Tel Is. 1965
Antwerp 5s, 1958
Akershus Is, 1963
Cincinnati Gas & El. 4a, 1968
Columbus Ry.Pwr. & Lt. 439s, 1957
Belgium
639s.
1949
Argentine 6s, 1957
Consumers Power 434s, 1958.
Con. Gas of N. Y. 439s, 1951
Canada
Is,
1952
Austria 7s. 1943
Con.Gas.E.L.& P., Balto.4s. 1981 Louisville Gas & El. 5s, 1952
Copenhagen 434s, 1953
Batavian Petrol, 439s, 1942
Duquesne Lt. 4348, 1967
Niagara Lockpt. & Ont. Is. 1955
Denmark 4.39s 1962
Danish Cons. Munic, 534s, 1955
New Eng. Tel. & Tel. 4345, 1961
Northern States Pwr. 4395, 1961
France
734s. 1941
Dutch East Indies fis, 1962
N. Y. Gas, El. Lt. & Pwr. 4s, 1949 Ohio Power 439s, 1956
Norway 55. 1963
Framorican Ind. Dov. 739s, 1942
Phila. Elec. 4s, 1971
Pacific Gas & El. 434s, 1957
Rotterdam 6s. 1964
Oslo 6a. 1955
Pub. Serv. El. & Gas 4s. 1971
Penna. Water & Pwr. 434s, 1968
Soissons 6a. 1936
Oslo Gas & Elec. Is, 1963
West Penn Power 4s, 1961
So. Calif. Edison Is, 1951
Sweden 5398. 1954
Panama 539s, 1953
A
Bea
Bea
Ba
Appalachian El. Pwr. Is, 1956
Carolina Pwr. & Lt. 5s, 1956
Australia Is. 1957
Berlin 6a. 1958
Georgia Pwr. Is. 1967
Central Ill. Pub. Serv. 439s, 1981
Buenos Aires (City) 639s, 1955
Buenos
Aires
(Prov.)
Houston Lt. & Pwr. 434s, 1981
6s, 1961
Central Pwr. & Lt. Is, 1956
Cuba 534s. 1953
Cologne 639s, 1950
Ind'apolis Pwr. & Lt. Is. 1957
Florida Pwr. & Lt. Is. 1954
Finland 539a, 1958
Colombia 6a, (Oct.). 1961
Jersey Central Pwr. 434s, 1961
Interstate Pwr. Is, 1957
Germany 5345, 1965
Poland 6s, 1940
Louisiana Pwr. & Lt. Is. 1957
Iowa-Neb. Lt. & Pwr."B" Is. 1961
Italy 7a, 1951
Prussia 6s, 1952
Minneapolis Gas Lt. 4348, 1950
Mississippi Pwr. Is. 1955
Japan 539s, 1965
Ruhr Gas 635s, 1953
Ohio Edison Is. 1960
Nev. Cal. Elec. Is. 1956
Poland 1947
7s,
Rumania 7s, 1959
Tennessee El. Pwr. Is. 1956
New Orleans Pub. Serv. Is. 1955
Rome 639s. 1952
Serbs, Croats & Slov. 75, 1962
Texas Pwr. & Lt. Is, 1956
Puget Sound Pwr. & Lt. 4395, 1950
Tokyo 539s, 1961
Un, El. Serv. (Italy) 7s, 1956
MOODY'S BOND PRICES.*
(Based on Average Yields.)
1932
Daily
Averages.
Sept.30
29
28
27
26
24
23
22
21
20
19
17
18
15
14
13
12
10
9
8
7
5
2
1
WeeklyAug. 26
19
12
5
July 29
22
15
8
1
JUne 24
17
10
3
May 28
21
14
7
Apr. 29
22
15
8
1
Mar,24
18
11
4
Feb. 28
19
11
5
Jan. 29
22
15
High 1932
Low 1932
High 1931
low 1931
Year AgoSept. 29 1931
2 Years AgoSept. 27 1930_ _ _
MOODY'S BOND YIELD AVERAGES.
(Based on Individual Closing Prices.)
All
120
120 Domestics by Ratings.
Domestic,
Awl.
Aa.
A.
Baa.
82.50
82.62
82.50
82.28
82.38
82.38
82.14
81.90
81.78
80.95
80.72
80 84
80.84
80.72
80.95
80.95
81.54
81.78
81.78
81.66
81.54
81.30
Stock E
81.30
81.18
80.94
102.30
102.30
102.14
101.81
101.81
101.64
101.47
101.14
100.98
100.65
100.33
100.49
100.49
100.17
100.33
100.17
100.49
100.49
100.33
100.33
100.00
99.84
xchang
100.00
99.68
99.36
99.36 87.96
98.73 86.38
96.70 83.85
95.18 80.72
94.29 79.45
93.26 77.88
91.81 76.46
90.83 74.67
90.13 74.77
90.27 75.82
9065 76.78
90.13 76.35
89.04 73 45
88.64 73.55
89.45 77 00
92 10 78.88
93.26 80.95
9386 81.90
94 58 82.62
1,02 82 80.96
92.68 79.68
94.58 82 50
96 70 84.35
96.70 84.72
97.62 85 74
95 63 83 48
94 29 82 02
93 70 81 64
91 67 79.80
91.81 80.49
92 25 81.07
93.40 82.99
93 70 82 87
02.30 89.59
8681 71 38
0698 101 64
87.98 78.03
77.99
99.04
RR.
P. U. Indus.
78.44
78.55
78.44
78.21
77.99
77.88
77.66
77.55
77.44
76.89
76.78
76.78
76.78
76.78
77.00
76.89
77.33
77.55
77.22
77.33
77.22
77.22
66.30
66.47
66.47
66.30
66.73
67.07
66.81
66.47
66.38
65.04
64.71
64.71
64.88
64.88
64.96
65.04
66.04
66.81
67.16
67.07
66.90
66.55
76.67
76.78
76.67
76.46
76.46
76.57
76.46
75.92
76.14
74.88
74.67
74.77
74.88
74.67
74.88
74.98
75.82
76.46
76.25
76.25
76.14
76.14
87.43
87.69
87.58
87.30
87.43
87.30
86.77
86.51
86.51
85.87
85.74
85.48
85.81
85.87
85.74
85.61
86.12
86.25
86.51
86.25
85.99
85.87
77.00
76.89
76.67
66.73
66.47
65.96
76.25
76.14
75.61
85.99
85.74
85.23
76.87
75.61
72.26
68.67
67.42
63.27
60.16
58.73
58.52
59.36
59.94
59.80
58.04
66.12
58.52
60.31
63.19
65.62
67.07
66 64
67.07
71 29
73.45
73 85
75.29
73,35
72.26
71.77
69,77
70 62
70.52
72 06
73 15
78.55
64.43
92.97
59.87
65.79
65.54
61.11
54.61
51.85
47 63
45 50
43.58
43.02
43 62
44.25
43.02
41 03
38.88
41.44
42.90
45.46
47.44
49.22
47.73
45.15
50.80
55,42
56.58
59.80
58.66
57.57
58 32
55.55
55.73
55.99
57 17
57.30
67.86
37 94
78.55
42.58
76.25
76.35
71.38
65.45
64.15
59 87
56,32
54.86
54.73
55 61
56.32
55 6)
52.47
49,53
52 24
54.55
57.64
59.94
62.56
60 82
59.29
64 80
85.87
84.85
81.66
77.55
75,82
73.05
72.16
69.40
69.13
69.59
70,52
69.68
68.68
66.73
71.09
72.115
74.46
75 92
76.68
74.98
71.87
7765
80.72
8) 07
8336
81.42
79.68
79.56
77 11
77,44
77 66
80.14
81.54
87.69
65 71
96.85
73.55
89.45
89.59
89.45
89.31
89.31
89.17
88.90
88.63
88.50
87.96
87.83
87.96
87.83
87.83
87.96
88.23
88.50
88.36
88.10
87.83
87.69
87.30
closed
87.43
87.43
87.04
80.95
80.14
76.67
72.26
70.43
66 98
64.71
62.87
62.48
63.27
63 90
63.11
60 97
59.01
62 02
63.98
66.55
68.40
69 86
68.49
87 07
71.67
74.88
75.61
77.55
76.82
74.57
74.46
72 16
72 65
72 95
74 36
74 77
82.62
57 57
93.65
62.58
120 Domestics
by Groups.
Is
71.19
73 85
72.95
71 67
71.77
69 31
70 15
70 71
7206
72 16
78.99
47.68
95.18
53.22
90.41
74.77
58.04
72.65
88.38
97.62 105.89 102.14
97.16
86.77
99.52
98.41
83.85
83.85
83.85
83.60
83.85
83.85
83.72
83.60
83.23
82.74
82.50
82.62
82.74
82.50
82.62
82.74
83.11
83.11
83.23
83.11
82.87
82.38
.40
1932
120
Daffy
Domes
Averages. tic.
Sept.30__
29._
28._
27..
26._
24._
23._
22._
21-20-19._
17._
16._
120 Domestics
by Groups.
120 Domestics by Ratings.
Awl.
Aa,
6.00
4.61
5.46
5.99
4.61
5.45
6.00
4.62
5.46
6.02
4.64
5.47
6.01
4.64
5.47
6.01
4.65
5.48
6.03
4.66
5.50
6.05
4.68
5.52
8.06
4.69
5.53
8.13
4.71
5.57
6.15
4.73
5.58
6.14
4.72
5.57
6.14
4.72
5.58
6.15
4.74
5.58
6.13
4.73
5.57
13._ 6.13
4.74
5.55
12._
6.08
4.72
5.53
10._ 6.06
4.72
5.54
6.05
4.73
5.56
5.07
4.73
5.58
8.08
4.75
5.59
6.10
4.78
5.62
tock E seining a closed
82.26
6.10
5.61
4.75
82.14
6.11
4.77
5.61
81.90
6.14
4.79
5.64
Weekly
81.18 Aug. 28... 8.13
4.79
5.57
79.45
19__
6.20
4.83
5.69
77.66
12__
6.51
4.96
5.89
74.77
8.94
5.06
6.15
72.26 July 29-7.13
5.12
8.28
69.31
22._
7.51
6.19
6.40
67 25
15.. 7.78
5.29
6.53
85.96
8.01
5.36
6.70
65.12
8.06
5.41
8.69
66.04 June 24._
7.96
5.40
6.59
86.21
17._
7.88
5.38
8.50
65.62
10__
7.98
5.41
8.54
63 90
8.26
5.49
6.82
63.35 May 28.. 8.53
5.67
6.81
65.29
8.12
5.48
6.48
66.64
14._
7.87
5.27
6.31
79.40
7.66
5.19
8.13
70.90 Apr, 29._
7.35
5.15
6.05
71.48
22__
7 19
5.10
5.99
71 00
15._
7,34
5.22
6.13
71.38
7.50
5.23
8.24
73.66
7.00
5.10
6.00
74 57 Mar.24.
6 68
4.06
5.85
74.98
18__
6.61
4.98
5 82
76 14
11._ 6.43
4 90
5.74
73 55
6.59
5.03
5.92
72.75 Fab. 26._ 6.7!
5.12
6 04
72 45
19.. 6.72
5.16
6.08
11._ 6.95
70 62
5.30
6.23
70 71
8 90
5.29
8.17
70.81 Jan. 29__ 6 87
5.26
8.12
71.48
22._
6.73
5.18
696
71.19
16.. 8.69
5.16
5.97
83.85 Low 1932 5.99
4.61
5.45
62.09 High 1032 8.74
5.75
7.03
9065 Low 1931 5.17
4.34
4.65
63.74 High 1931 8.05
5.57
6.57
Yr.Ago74.36 Sept.29'31 6.39
4.81
5.39
2 Yrs.Auo.
94.73 Sept.27'30 4.90
4.40
4.62
90
ForP. U. Indus. dons.
A.
Baa.
RR.
6.35
8.34
6.35
6.37
8.39
6.40
6.42
6.43
8.44
6.49
6.60
8.50
6.50
6.50
6.48
6.49
8.45
6.43
8.46
6.45
6.46
6.46
7.59
7.57
7.57
7.59
7.54
7.50
7.53
7.57
7.58
7.74
7.78
7.78
7.76
7.76
7.75
7.74
7.62
7.53
7.49
7.50
7.52
7.56
6.51
6.50
6.51
6.53
6.53
6.52
6.53
6.57
6.56
6.68
8.70
6.69
8.88
6.70
6.68
6.67
6.59
6.53
6.55
8.55
6.56
6.56
5.61
5.59
5.60
5.62
5.61
5.62
5.66
5.68
5.68
5.73
5.74
5.76
5.75
5.73
5.74
5.75
5.71
5.70
5.68
5.70
5.72
5.73
5.89
5.89
5.89
5.91
5.89
5.89
5.90
5.91
5.94
5.98
6.00
5.99
5.98
8.00
5.99
5.98
5.95
5.95
5.94
5.95
5.97
8.01
10.13
10.16
10.12
10.08
10.05
10.04
10.13
10.23
10.31
10.38
10.39
10.43
10.48
10.47
10.58
10.53
10.48
10.41
10.33
10.29
10.44
10.57
8.48
6.49
6.51
7.54
7.57
7.63
6.55
6.56
8.61
5.72
5.74
5.78
8.02
6.03
8.05
10.78
10.92
10.93
8.51
7.65
6.55
6.61
7.68
6.54
6.94
8.24
7.03
7.32
9.20
7.69
7.46
9.67
7.85
7.96 10.48
8.41
8.37 10.94
8.93
8.57 11 39
9.16
8.60 11.63
9.18
848 1138
9 04
8.40 11.23
8 93
8.42 11 53
9 04
8.67 12 05
9.66
8.96 12 67 10.10
8.60 11'94
9.60
8.35 11.56
9.21
7.97 10 95
8.73
7.67
10 52
8 40
7.50 10.16
8.05
7.55 10.46
8.28
7.50 11 02
8 414
7.04
9 86
7.77
8.82
9.07
7 16
6.78
8.89
7 05
6.64
8.42
8 78
6.83
8.58
6.87
6.94
8.74
7.00
6 99
8 63
6.99
7.20
9 05
7.25
7.11
9 02
7.16
7 12
8.98
7.10
6 96
8 80
6 98
6.85
11 78
6 95
6.34
7.41
6.30
9.23 12.06
10.49
5.21
8.34
5.06
8.41
11.64
9.43
5.73
5.81
6.07
6.43
0.59
6.86
6.95
7.24
7 27
7.22
7.12
7.21
7.33
7.54
706
6.87
6 72
8.58
640
6.67
6 98
6 43
6 IS
6.12
5.93
8.09
6 24
6.25
11.47
6 44
5 42
(120
6.08
5.59
7.86
4.95
6.81
6.11
6.26
6.42
8.69
6.94
7.25
7.48
7.28
7.73
7.82
7.60
7.87
7.88
7.95
7.71
7.55
7.24
7.08
7.02
7.07
7.03
6.80
6.71
6.67
6.56
6 81
6.89
6.92
7.11
7.10
7.09
7.02
7.05
5.89
8.11
5.38
7.90
10.99
11.19
11.30
11.53
11.73
12.02
12.18
12.13
13.76
13.92
14.30
14.75
15.29
15.28
14.82
14.03
14.10
13.70
13.81
13.39
13.23
12.77
12.60
12.62
12.31
12.55
12.82
12.86
13.23
13.00
13.22
13.12
13.30
10.04
15.83
6.57
16.58
6.69
8.67
6.90
5.54
5.73
12.59
4.93
5.68
4.78
4.85
5.09
6.55
•Note -These Prices are computed from average yields on the basIs of one
bond (441% coupon. maturing In 31 years) and do not Purport to
average level or the average movement of actual price quota ions. They merely"ideal"
show el her the
serve to illustrate in a more comprehensive way the relative levels and
the relative movement of yield averages, the latter being the truer picture of the bond market.
Volume 135
Financial Chronicle
2229
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, Sept. 30 1932.
Seasonable weather is still having a stimulating effect on
trade in different parts of the country, though it is true that
in many lines sales are below those of a year ago. The general trend, however, is now upward whereas at this time
in 1930 and 1931, it was downward. Depression has not
been dispelled, but for all that there appears to be a slow but
steady progress towards a better state of things. In the
retail trade clothing is most active especially in department
stores, owing to the cool or actually cold weather. Men's
clothing which has been dull so long has at last become more
active; in fact in some parts of the country the sales are the
largest of any time this year. There is a fair trade in dry
goods and house furnishings and low prices are not quite so
often insisted upon. Still the low buying power of the
people is much in evidence. "Special sales" are everywhere
being held to give stimulus to trade and inferentially prices
are made as attractive as possible. Wholesalers and jobbers
in dresses, suits and other clothing are having a fair trade in
small orders. Nobody is disposed to take chances. Retailers
it is noticed are still disinclined to fill their shelves with large
stocks. In light manufacturing lines textiles and shoes still
make a good showing. There are frequent reports of cotton
and other textile mills going on full time after curtailing or
being closed. Some shoe factories also send favorable reports. St. Louis for instance reports the largest production
of shoes in a year and a half and some speciality lines are
operating on full time for the coming holidays. Meanwhile
iron and steel continue in the doldrums though there is some
slight increase in the output of steel. Last week's car loadings
were the largest of the year and an increase is predicted for
the present week. Detroit is bringing out new models on a
conservative scale but retail trade in motor cars is not at all
brisk. The weather has been better in the cotton belt for
the prolonged rains have died down but rain is needed by
winter wheat belt for ploughing and seeding. The corn crop
is practically made.
Cotton has declined under better weather, larger liquidation and hedge selling. Wheat declined under the weight of
general liquidation in sympathy with stocks and cotton.
Corn has sold at the lowest prices in 35 years with country
offerings large and hedge selling a telling factor against the
price. Corn is the cheapest fuel the farmer has, now.
Oats have followed other grains, down, though none too
readily. Rye has declined in sympathy with the lower
prices for wheat. Provisions have declined in response to
to the drop in grain, cotton, wheat and stocks. Coffee
plunged downward some 200 points for December on the
report that the.revolutionists in Brazil have asked for an
armistice. That would mean a big increase in the shipments of coffee from the reopened port of Santos and a drop
in the spot market at New York.
Sugar advanced as it became clear that the release of
700,000 bags of Cuban sugar would be deferred to July 31
and that there will be a sharp out in the next Cuban crop
possibly of 2,000,000 tons. Rubber has declined and so
has hides. As to the stock market, on the 24th stocks
were higher, with transactions up to 1,336,000 shares for
the half-day, with railroad shares leading the advance.
The transactions were far larger than on the previous
Saturday. Railroad shares were helped by the agreement
reached on the Eastern trunk line consolidation. Railroad
bonds were even stronger than railroad shares, especially
for Baltimore & Ohio. New York Central and Chesapeake &
Ohio issues. Utilities and U. S. Government bonds also
advanced. The total bond sales were $6,772,000. Financial markets in general are the strongest seen at this time of
the year since 1928 and are in striking contrast to the drastio
decline and hurried liquidation in the last half of September
1929, 1930 and 1931. Trade reports were encouraging in
some respects.
On the 26th the stock market started well enough but soon
snapped under liquidation and other selling. The trading
was in about 2,100,000 shares. Domestic bonds closed
lower and United States Government and foreign issues
irregular, with sales of $10,115,000. The net decline in
stocks of the sort that everybody watches was 1 to 4 points.
For lack of anything in the news to account for the decline
Wall Street put it down to a weakened technical position.
It was not due to politics. Wall Street s attitude on that
score is noticeably calmer. Declines were most noticeable
in Western Union, United States Steel, American Telephone,
Allied Chemical, American Smelting, Bethlehem Steel,
Auburn, Brooklyn Union Gas, J. I. Case, du Pont, Consolidated Gas, General Motors and Eastman.
Stocks on the 27th inst. advanced on trading in only
1,400,000 shares closing irregular in an uneventful day.
Domestic bonds ended irregular, but it was noticed that
railroad bends were generally higher as the movement
progresses looking to the betterment of the railroad industry.
Stocks showed no disposition to advance materially nor did
they have any downward tendency. It was a waiting
attitude. Traders acted on the old maxim "when in doubt
do nothing."
Although stocks were decidedly quiet on the 28th they
were firm and not a few shares advanced 2 to 3 points with
transactions just short of 1,400,000 shares. The rank and
file of traders were simply watching and waiting for further
developments. U.S. Government and domestic corporation
bonds were generally lower while foreign bonds were higher.
The total bond trading was only $8,966,000. Commodity
markets were colorless and the day was generally uneventful.
On the 29th inst. stocks declined 1 to 3M points with
cautious trading and the small volume of 1,340,000 shares.
Wheat fell 1 cent a bushel, cotton 45 points and coffee 200
points. There were also declines in other commodities.
Some few issues went against the trend and closed a little
higher. In any case the decline in stocks was not commensurate with the drop in commodities. In London stocks
were lower but the selling here was not at all aggressive.
To-day stocks in a dull session kept within a narrow range,
and ended only fractionally lower on pivotal shares. Trading was in only 1,159,060 shares. Foreign bonds were in
good demand and higher. Treasury issues were easier.
At Brunswick, Me., the Cabot Mills will go on a fulltime schedule with day and night shifts to take care of the
influx of orders. The prospects look good for full-;4ime
operation of the mills for an indefinite_..) Hod. The mills
have been operated at 90% capacity. At Hendersonville,
N. C., the Chipman-Burrowes hosiery mill at East Flat
Rock and the Grey hosiery mill at Hendersonville have
increased production and the number of workers within the
past 60 days to meet increased demand. At Balfour, N. C.,
the Balfour Mills, Inc., continue to operate at full time with
a payroll of 1,200 workers. At Taylorsville, N. C., the
Carolina Spinning Co., idle since last March, has resumed
part time and is expected to be operating at capacity within
a short time. At Spartanburg, S. C., the Newberry Cotton
Mills of Newberry have resumed a five-day-week, after
operating for some time on a three-day-week, and have also
given operatives a 10% increase in pay. Approximately
1,200 workers are affected. At Fall River, increased activity
in both local cloth and cotton markets has developed since
the advance of the cotton and stock markets. Good business
has resulted, although the cloth business did not reach the
volume it might have reached had nearby goods been available. The demand has brought about preparations to start
additional looms. The business in both plain and fancy
marquisettes is one of the features. A fair volume of business
has been done in broadcloths and sateens. There has also
been good inquiry for numerous constructions in plain goods,
although not much business resulted through lack of stocks.
Chester, S. C., wired that the plant at Lando is operating
on a 55-hour-a-week scheduls, daytime only, manufacturing blankets, white nap goods and flannels. The mill
at Monroe is on the same schedule, manufacturing bedspreads. Both mills have sufficient orders to run on fulltime schedule until the first of the year.
At Graniteville, S. C., the Graniteville Manufacturing
Co., operating plants there, at Warren, S. C., and Vaucluse,
S. C., have resumed full time, giving employment to 1,300
operatives. At Thomasville, N. C., 100 operatives are
scheduled to return to work at once at the Amazon Cotton
Mill, Cannon Mills subsidiary. The mill will discontinue
the policy of deducting from operatives' pay, money spent
at the company's stores, and in future the only deductions
will be for lights, house rent and similar charges. At
Lawrence, Mass., preliminary operations which will eventually lead to the re-opening of the Washington Mills, next
2230
Financial Chronicle
to the largest American Woolen Co.unit in Greater Lawrence,
closed since the late
mill has
-. The
•Cv
-111-761-nmenee
ustrY
improvementin the textile in-dingThe
decision of American Woolen
Is-belirve-d-te- be bier of theeratiOns.
Co. officials to resume 5
-NOTO-n1; mills will reopen next
At Lexington,
Monday. Two hundred to 250 workers will be recalled,
after nearly five months' idleness. At Anderson, S. C.,
six mills which are operating 105 hours weekly with day run
01-55 hours and nightshifts of 50 hours include Gluck Orr,
Toxaway of Anderson, Chiquola of Honea Path, S. C., and
the Pendleton Mfg. Co. of La France, S. C. Wilmington,
N. C., wired that the Spofford Mills, Inc., is operating 504
looms on broadcloth. Much new equipment has been
installed. Day and night shifts are in order. All 75 cards
are being operated. At Ellenboro, N. C., after a period of
idleness, the Ellenboro Mfg. Co. has resumed operations on
a part-time basis.
At Forest City, N. C., the Florence Mill is reported to
have sufficient orders to justify day and night operations for
an indefinite period. Reports state that the Spindale and
Alexander Manufacturing Co. plants are operating full time.
Henrietta, N. C., wired that a capacity staff of 1,000 operatives are working at the Henrietta Mills at Henrietta and
Caroleen. It is reported that 7,000 bales of cloth have
been shipped from the plants in the past fortnight.
At Beloit, Wis., the Freeman Shoe Corporation will
increase at once its working week from forty to forty-five
hours. The plant has operated regularly during the depression and the new schedule will put it on a 90% proiluction
basis for 800 workers.
London cabled that the Lancashire cotton mill strike,
which had been in progress for the past four weeks and wliih
is estimated to have cost the industry some 836,000,000-7Z
settled with reinstatement offered to displaced strikers.
Early in the week it was rainy or threatening raw and
chilly in New York. On the 27th inst. it was 54 to 64 here.
A great hurricane swept over Porto Rico killing 200 and injuring 1,000 with big property loss. It drove northward
and struck the coast of the Dominican Republic and also
the Virgin Islands. Chicago had 58 to 64 degrees, Cleveland
07a
58 to 70, Kansas City 52 to 64 and St. Paul 46 to 62.-the 29th the temperatures in New York City were 50"-G-673
Adirondack77degrees and there was a heavy snow fall in
the first of the season. Chicago had 50 to 62, St. Paul 36
to 66, Winnipeg 38 to 74. To-day it was 41 to 60 degree's
here. The forecast was for fair and warmer to-morrow.
Overnight Boston had 40 to 68 degrees; Portland, Me.,
38 to 62, Chicago 46 to 62, Cincinnati 52 to 66, Cleveland
48 to 56, Kansas City 54 to 70, Portland, Ore., 54 to 84,
Seattle 52 to 74, Montreal 38 to 52 and Winnipeg 44 to 74.
Federal Reserve Board's Summary of Business Conditions in the United States-Industrial Production
Records First Gain in Current Year-Reflects
Chiefly Expansion in Activity at Textile Mills.
In its summary of business conditions in the United
States, issued Sept. 23 the Federal Reserve Board states
that "the volume of industrial production increased from
July to August by considerably more than the usual seasonal
amount, reflecting chiefly expansion in activity at textile
mills." Listing six specific improvements during August,
the Board's summary, it is noted in the "United States
Daily," pointed to advances in wholesale prices, increased
production, the return of money from hoarding, increases
in the American gold stocks, abnormal firmness in building
activities and slight increases in employment. The "Daily"
states that the increase in industrial production is the first
which the Board's index has reflected in 1932, according to
additional information. The increase carries the index
back to a higher level than the one on which it stood in
June, but it still leaves the index four points below the
lowest level ever established prior to this year. The Board's
summary follows:
The volume of industrial production increasedfrom July to August
by considerably more than the usual _seasonal amount, reflecting chiefly
expansion in activity at textile mills. Wholesale prices advanced during
August and the general level prevailing in the first three weeks of September
was somewhat higher than in other recent months. There was a further
growth in the country's stock of monetary gold and a non-seasonal return
flow of currency,to.the Reserve banks.
Production and Employment.
Industrial output increased substantially in August and -the Board's
seasonally adjusted index showed an advance from 58 to 60% of the 1923-25
average. Activity at cotton. woolen, silk, and rayon mills increased from
the low level of other recent months by considerably more than the usual
Oct. 1
1932
seasonal amount, and there was also a substantial increase in activity at
shoe factories.
Output of automobiles, however, declined further and production in
the steel and lumber industries showed none of the usual seasonal increase
in August. During the first three weeks of September there was a slight
advance in steel output.
Employment at factories increased slightly more than is usual at this
season. There were large additions to working forces in the textile, clothing
and leather industries, while in the automobile, tire, and machinery industries and at car-building shops the number employed decreased further.
Aggregate wage payments increased less than seasonally.
Building contracts awarded up to Sept. 15, as reported by the F. W.
Dodge Corp., indicate that for the third quarter the total value of contracts
will be about the same as for the second quarter, whereas usually awards
for the third quarter are smaller. Currently, contracts for public works
are a considerably larger part of the total than they were at the beginning
of the year and residential contracts are a smaller part.
Department of Agriculture crop estimates based on Sept. 1 conditions
indicate little change in prospects during August. Indicated crops of
wheat and tobacco are considerably smaller than in othe recent years,
while the corn crop is the largest since 1925. The cotton crop is estimated
at 11,300,000, a decrease of about 6,000,000 bales from the large crop
of a year ago.
Distribution.
Volume of merchandise and other freight handled -by the railroads
increased seasonally during August, while during the corresponding period
a year ago no increase was reported. Department store sales of merchandise increased from July to August by somewhat less than the usual
seasonal amount.
Wholesale Prices.
Wholesale commodity prices advanced from 64.5% of the 1926 average
in July to 65.2 in August, according to the monthly index of the Bureau
of Labor Statistics. During August prices of many leading commodities,
including textile raw materials and finished products, wheat, hides, nonferrous metals, sugar, rubber, and coffee. increased substantially. In
the first half of September there were declines in the prices of many of
these commodities, while prices of wool and woolen goods, cattle, and hides
advanced.
Bank Credit.
During recent weeks further growth in monetary gold stock, a return
flow of currency from hoards, and new issues of National bank notes have
re/lulled in additions to the reserve funds of member banks. These banks
have employed a 'part of the funds in further reducing their borrowings
at the Reserve banks, and have accumulated a part as reserve balances,
which at the present time are more than $300,000,000 in excess of required
reserves.
Reserve bank holdings of United States Government securities and of
acceptances remained practically unchanged during the four weeks ended
Sept. 14, while the total of Reserve bank credit declined by $43,000,000
through the reduction of discounts for member banks.
Loans and investments of reporting member banks in leasing citied
showed little change between the middle of August and the middle of
September. A further decline of more than $150.000,000,000 in loans
banks outside of New York City during the last four weeks was offset in
large part by continued increase in investment holdings, chiefly at member
banks in New York City. There was a considerable growth in deposits
by reporting member banks, reflecting in part larger balances held by
city banks for the account of other banks.
Money rates in the open market remained unchanged at low levels during
August and the first half of September.
•
Loading of Railroad Revenue Freight at Highest
Figure of Year.
Loading of revenue freight for the week ended on Sept. 17
totaled 587,302 cars, the highest for any week since Dec. 12
1931, according to reports filed on Sept. 24 by the railroads
with the ear service division of the American Railway Association. The total for the week of Sept. 17 was an increase of
85,478 cars above the preceding week, when loadings were
reduced somewhat owing to the observance of Labor Day,
but was 155,312 cars under the same week in 1931 and 365,259 cars under the same week two years ago. Segregated,
the figures show:
Miscellaneous freight loading for the week of Sept. 17 totaled 217.630
cars, an increase of 34,257 cars above the preceding week, but 57,947 cars
under the corresponding week in 1931 and 164,507 cars below the same week
in 1930.
Loading of merchandise less than carload lot freight totaled 177,349 cars,
an increase of 27,046 cars above the preceding week, but 40,563 cars below
the corresponding week last year, and 67,451 cars under the same week two
years ago.
Grain and grain products loading for the week totaled 35,865 cars, two
cars above the preceding week, but 4,325 cars below the corresponding week
last year and 10,260 cars below the same week in 1930. In the Western
districts alone, grain and grain products loading for the week ended on
Sept. 17 totaled 24,530 cars, a decrease of 3,629 cars below the same week
last year.
Coal loading totaled 106,790 cars, an increase of 17,460 cars above the
preceding week. but 16.215 cars below the corresponding week last year,
and 47,077 cars below the same week in 1930.
Forest products loading totaled 17,936 cars,an Increase of 2,379 cars above
the preceding week, but 8,627 cars under the same week in 1931 and 23,560
cars below the corresponding week two years ago.
Ore loading amounted to 6,558 cars, an increase of 433 cars above the
week before, but 23,297 cars under the corresponding week last year and
42,227 cars under the same week in 1930.
Coke loading amounted to 3,472 cars, an increase of 333 cars above the
preceding week, but 1,134 cars below the same week last year and 4,704
cars below the same week two years ago.
Live stock loading amounted to 21,702 cars, an increase of 3,568 cars
above the preceding week, but 3.204 cars below the same week last year and
5,473 cars below the same week two years ago. In the Western districts
alone, loading of live stock for the week ended on Sept. 17 totaled 16,822
cars, a decrease of 3.384 cars compared with the same week last year.
All districts reported reductions in the total loading of all commodities
compared with the same week in 1931 and 1930.
Loading of revenue freight in 1932 compared with the two previous
years follows:
2231
Financial Chronicle
Volume 135
Four weeks In January
Four weeks in February
Four weeks in Ma:ch
Five weeks in April
Four weeks in May_
Four weeks in June
Five weeks in July
Four weeks in August
Week ended Sept. 3
Week ended Sept. 10
Week ended Sept. 17
'raw
1932.
1931.
2,269,875
2.245,325
2,280,672
2,772,886
2,087,756
1,966,355
2,422,134
2,065,079
559,727
501,824
587,302
2,873,211
2,834,119
2,936,928
3,757,863
2,958,784
2,991,950
3,692.362
2,990,507
759,871
667,750
742,614
3,470,797
3,506,899
3,515,733
4,561,634
3,650,775
3.718,983
4,475,391
3,752,048
856,649
965,813
952,561
1930.
19 75g 037
27 205 959
an 427 2R3
The foregoing, as noted, covers total loadings by the railroads of the United States for the week ended Sept. 17. In
the table below we undertake to show also the loadings for
the separate roads and systems. It should be understood,
however, that in this case the figures are a week behind those
of the general totals-that is, are for the week ended Sept. 10.
During the latter period eleven roads showed increases over
the corresponding week last year, the most important of
which were the Spokane Portland & Seattle Ry. and the
Rutland RR.
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED SEPT. 10.
Railroads.
1932.
Eastern DistrictGroup A;
Bangor & Aroostook
Boston de Albany
Boston & Maine
Central Vermont
Maine Central
New York N. H. & Hartford
Rutland
Total
Group B;
y Butt. Rochester de Pittsburgh.
Delaware& Hudson
Delaware Lackawanna & West..
Eire
Lehigh & Hudson River
Lehigh ec New England
Lehigh Valley
Montour
New York Central
New York Ontario & Western
Pittsburgh & Shawmut
Pittsb. Shawnaut & Northern
z Ulster & Delaware
Total
Group C;
Ann Arbor
Chicago Indianan.& Louisville_
Cleve. Cin. Chi. & St. Louis__
Central Indiana
Detroit & Mackinac
Detroit & Toledo Shore Line...
Detroit Toledo & Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis
Pere Marquette
Pittsburgh de Lake Erie
Pittsburgh & West VirginiaWabash
Wheeling & Lake Erie
Total
Grand total Eastern District._
Allegheny DistrictBaltimore dr Ohio
Bessemer & Lake Erie
Y Buffalo & Susquehanna
Buffalo Creek & Gauley
Central RR.of New Jersey---Cornwall
Cumberland & Pennsylvania.-Ligonier Valley
Long Island
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
Total
Pocahontas DistrictChesapeake & Ohio
Norfolk & Western
Norfolk & Portsmouth Belt Line
Virginian
Total
Southern DistrictGroup A;
Atlantic Coast Line
Clinchfleld
Charleston & Western Carolina
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont & Northern
Richmond Frederick.& Potom_
Seaboard Air Line
Southern System
Winston-Salem Southbound
Total Loads Received
from Connections.
Total Revenue
Freight Loaded.
1932.
Railroads.
1931.
1931.
1930.
662
2,249
6.206
580
2,090
8,589
621
1,082
3,042
8,443
711
3,188
11,220
570
2,222
3,862
11,590
897
4,555
15,226
813
168
3,449
7,601
1,551
1,452
8,632
954
248
5,072
9,842
2,736
2,017
11,923
1,089
20,997
28,256
39.165
23,807
32,927
4.492
6,183
9,083
135
1,041
6,058
1,518
16,126
2,043
395
215
6:560
9,109
11.431
175
1,528
8,010
1,867
23.464
2,128
361
361
10,672
12,883
17,678
237
2,311
11,237
2,786
36,118
1,688
654
530
5;oii
4,188
11,089
1,436
752
4,698
38
19,764
1,498
63
200
6.678
5,926
13,603
1,926
1,015
6,412
34
27,602
1,794
18
226
47,289
64.794
96,794
48.743
65,234
392
1,294
7,078
16
378
138
1,096
1,758
4,303
2,620
4,131
3.319
2,931
765
4,536
2,501
569
1,934
8.657
43
320
257
1,256
2,679
6,090
3,375
4,794
4,326
4,019
903
5,402
3,493
625
2,510
12,605
84
430
293
2.468
4,435
9,282
5,343
7,525
8,047
7,694
1,821
7,082
4,214
837
1,580
9,116
49
100
1.137
467
3,832
5,863
161
6,569
3,123
2,992
421
5.509
1,992
1,048
2,092
10,768
69
192
1,822
898
5,332
7,328
252
8,231
3,918
3,926
812
7,280
2,263
37.256
48,117
74.458
43,748
56,231
105.642
141,167
210,417
116,298
154,392
20,928
1,115
30.928
3.640
246,075
6,296
9,475
900
15,207
1,322
140
4,484
183
68
827
46,511
10,243
3.199
46
2,287
135
6,803
478
278
132
1,481
67,454
13,775
7,215
51
2,914
203
11,575
427
438
182
1,980
97,620
19,058
11,517
63
4,063
5
7,903
32
41
13
2,175
27,549
10,915
844
7
10,614
35
15
15
3,194
37,681
16,169
3,623
2,725
3,839
90,031
135,284
199,497
62,577
91,721
18,520
14,947
623
2.887
22,717
18,433
965
3,729
28.619
24.123
917
4,094
7.003
3,015
859
453
8,494
3.747
1,701
449
36,977
45,844
57,753
11,330
14,391
6.080
820
377
117
51
1,241
431
260
5.481
16.817
156
8,110
1,174
444
163
55
1,877
434
357
7.385
20,589
187
12.050
1,410
641
150
61
2,158
627
450
10,495
26,926
238
3,527
922
623
243
67
947
658
1,751
2,562
9.073
595
4,824
1,181
905
434
116
1,305
686
2,121
3.215
12,028
1,127
Group B.
Alabama Tenn. & Northern___
Atlanta Birmingham de Coast_ _
Atl.& W.P.-West RR.of Ala.
Central of Georgia
Columbus & Greenville
Florida East Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Macon Dublin & Savannah__
Mississippi Central
Mobile & Ohio
Nashville Chattanooga de St. L.
New Orleans-Great Northern..
TennesseeCentral
Total Loads Received
from Connections.
1932.
1931.
1930.
211
631
600
3,230
312
295
739
316
670
18,639
14,823
141
209
1,728
2,257
460
273
306
695
651
3,814
233
375
953
488
683
20,774
18,790
155
177
1,867
2,714
801
526
199
1,050
859
4,761
294
559
1,235
790
1,066
28,732
26,179
217
337
2,620
3,983
965
743
1932.
1931.
99
355
872
1,796
176
338
1,071
251
559
7.268
2,704
277
274
967
1,645
246
487
166
657
1,012
2,294
240
438
1,254
285
777
8,481
3,834
264
300
1,091
1,789
275
472
45.534
54,002
74,589
19,385,
23,629
Grand total Southern District--
77.365
94.777
129,695
43,353
51,571
Northwestern DistrictBelt Ky. of Chicago
Chicago & North Western
Chicago Great Western
Chic. Milw. St. Paul & Pacific_
Chic. St. Paul Minn. dr Omaha
Duluth Missabe & Northern_ _ _
Duluth South Shore & Atlantic
Elgin Joliet & Eastern
Ft. Dodge Des M.& Southern_
Great Northern
Green Bay de Western
Minneapolis & St. Louis
Minn. St. Paul & S. S. Marie__
Northern Pacific
Spokane Portland & Seattle__
952
12,810
2,220
14,763
3,446
2,390
398
2,750
272
9,313
427
1,687
4,556
8,179
1.122
1,357
19,064
2,737
19,847
3,747
9,746
659
3,740
322
14,272
506
2,079
5,528
9,655
900
1.878
29,860
3.863
29,057
5.641
16.808
1,222
7,275
461
22,332
735
3,407
9,432
14,415
1,576
1,599
7.291
1,642
5,818
3,522
95
335
2,731
105
1,949
265
1,345
1,626
2,124
1,058
1,518
8,952
2,428
7,159
3,206
112
420
3.869
172
2,147
374
1,532
1,974
2,143
1,158
65,285
94,159
147,962
31,505
37,164
18,276
2,853
111
14,461
11,324
2,351
871
2,670
483
821
542
165
13,942
203
325
11,079
461
1,228
23,604
3,188
195
17,745
12,727
2.795
1,102
3,206
572
1,106
746
114
17,377
301
266
14,181
617
1,451
30.109
4,655
297
26,191
19.573
3,875
1,403
4,279
777
1,405
1,358
329
26,773
384
362
18,325
665
1,825
3,776
1,571
17
4,890
5,186
1,625
782
1,813
10
727
233
16
2,500
411
787
6,427
8
1,882
4,711
1.866
28
6,430
6,698
2,057
1,130
2,444
10
1,041
277
40
3,244
323
776
8,130
16
1,724
82,166
101,293
142.585
32,661
40,945
Southwestern DistrictAlton & Southern
126
Burlington-Rock Island
220
Fort Smith & Western
182
Gulf Coast Lines
851
Houston & Brazos Valley
111
International-Great Northern
1,971
Kansas Oklahoma & Gulf
119
Kansas City Southern
1.379
Louisiana & Arkansas
1,351
Litchfield & Madison
122
Midland Valley
627
Missouri & North Arkansas
77
Missouri-Kansas-Texas Lines__
4,042
Missouri Pacific
.12,918
Natchez & Southern
38
Quanah Acme & Pacific
94
St. Louis-San Francsico
7,937
St. Louis Southwestern
2,345
San Antonio Uvalde de Gulf____
226
Southern Pacific in Texas de La.
4.708
Texas & Pacific
3,431
Terminal RR.Assn.of St. Louis
1,568
Weatherford Min. Wells&N.W.
15
203
234
169
1,404
349
2,188
284
1,923
1.826
106
935
80
5.241
15,701
39
101
8,417
2,354
432
7,304
3.897
2,003
36
274
459
277
2.295
256
2,963
370
2.659
1,879
235
1,413
129
7.101
22,006
33
127
12,496
3,127
619
10,420
5,696
3,004
66
2,459
192
124
794
57
1,207
635
1,162
727
233
162
231
2,010
6,169
28
104
2,683
848
184
2.203
2,092
1,823
31
2,581
210
127
1,485
44
1,638
552
1.794
881
531
544
250
2,470
7,611
55.226
77.904
26.158
34.418
Total
Total
Central Western Dist.Ateh. Top.& Santa Fe SystemAlton
Bingham & Garfield
Chicago Burlington & Quincy..
Chicago Rock Island & Pacific_
Chicago & Eastern Illinois
Colorado & Southern
Denver & Rio Grande Western_
Denver & Salt Lake
Fort Worth & Denver CitY---Northwestern Pacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
Toledo Peoria & Western
Union Pacific System
Utah_
Western Pacific
Total
55,106
Total
40.775
20,968
27,942
31,831
Total
I Included In New York Central. y Included in Baltimore & Ohio RR. z Estimated.
Business Activity Viewed by Guaranty Trust Co. of
New York as Responding to Seasonal Influences
Making for Expansion-Upward Movement of
Security and Commodity Values Seen as Sound
Reaction to Low Levels "Wholly Unwarranted"Demand for Soldiers' Bonus Hampering Recovery.
The current month has brought some tangible improvement to support the rather vague optimism that has accompanied the recent advance in security and commodity prices,
states the Guaranty Trust Co. of New York in the issue of
"The Guaranty Survey," its monthly review of business and
financial conditions in the United States and abroad, published Sept. 20. "Thus far, the most that can be said is
Total Revenue
Freight Loaded.
44,458
34
118
3,349
1,306
270
3.121
3.223
2,246
31
that business activity seems to be responding to the seasonal
influences making for expansion," says "The Survey," which
continues:
To conclude that this response marks definite progress toward recovery
would be premature, although the present trend certainly contrasts very
favorably with the almost complete absence of seasonal revival at the
beginning of the autumn season a year and two years ago. Such encouraging
implications as may be drawn from this situation are strengthened by the
further improvement that has occurred in financial conditions.
Optimism Fortified by Recent Events.
Recent signs of business expansion and financial recovery, together with
the strong rally in security and commodity markets following the downward reaction in the middle of the month, have further improved business
sentiment. While it is admitted that the trade revival, as far as can now
be discerned, is very moderate, the absence of a snore emphatic upturn
Is not regarded as an indication that the price advance is unsound. The
2232
Financial Chronicle
consensus of opinion seems to be that both security and commodity values
had sunk to levels that were wholly unwarranted by actual conditions, even
when the business outlook was at its worst, and that the upward movement
was a sound and logical reaction, quite apart from any improvement either
In the industrial or the financial situation.
On the whole, therefore, the events of the last few weeks have confirmed,
rather than discredited, the optimism that has arisen as a result of the
unexpectedly favorable developments of the summer. There is, of course,
very little tendency to anticipate swift and spectacular progress toward
high business levels. It is almost universally conceded that recovery must
be a gradual and irregular process. But the significant fact is that it is the
outlook for recovery, rather than the fear of utter disaster, that now
occupies attention.
Indications of Business Upturn.
The upturn in business activity is indicated by numerous reports, some
of which are considerably more convincing than others. There has unquestionably been a great improvement in all the leading branches of the
textile and apparel industries. The increase in foreign trade last month,
(stile not large, is encouraging, particularly the substantial rise in the
value of imports. Recent increases in car loadings seem to be larger than
might have been expected as a result of purely seasonal influences. Bituminous coal production has increased materially from the low levels of midsummer. A slight expansion has taken place in construction contracts,
and lumber production has gained. The increase in factory employment last
month suggests a revival of rather broad scope, though of small magnitude,
in the rate of industrial production. In these and certain other directions
current data seem to support the view that the improvement consists of
something more substantial than a rise in prices and a more cheerful
sentiment.
At other points there is little or nothing to offer in confirmation of the
general belief that a real upturn has occurred. Steel mill activity has
shown no more than a seasonal gain. The monthly report of the Federal
Reserve Board on sales of department stores shows an increase from July
to August of somewhat less than the estimated seasonal amount. Automobile production declined in August and appears to have remained
virtually stationary this month. Bank debits fail to indicate any significant increase in the volume of check payments. Electric power output,
after rising for several weeks, has declined sharply.
Conditions Hampering Recovery.
The persistent demand for further veterans' bonus legislation is unquestionably hampering business recovery, particularly in view of the continuing deficit indicated by the Treasury statements for the first two
months of the fiscal year. With a certainty that requirements for unemployment relief will be very heavy throughout the winter and with a distinct possibility that the coming session of Congress may be obliged to
resort to further tax increases in order to balance the Federal budget, the
continued agitation for immediate cash payment of the bonus is far from
favorable in its effects on business confidence, In so far as the latter is
related to the outlook for Government finances.
While reports from abroad indicate that some progress has been made
toward economic improvement, political developments have been less reassuring. The rebellion in Brazil, hostilities between Bolivia and Paraguay, the
parliamentary crisis in Germany, continued unsettlement In the Far East,
and the more dubious outlook for the disarmament conference resulting
from the German request for release from the limitations on armaments
imposed by the Versailles treaty have Clouded the prospects not only for
arms reduction but for much needed international co-operation along
economic lines.
Financial Situation Further Improved.
The financial situation has improved further, with comparatively few
bank failures, a continued inflow of gold, and a decline in the amount of
money in circulation, indicating, presumably, greater public confidence in
the banks and a decrease in hoarding. There has even been an increase
in the amount of bank credit outstanding, although this has taken the
form of a rise in investments, rather than in loans, and thus is less significant than it might be as an indication of increased business activity.
While the liquidation of loans is still under way, it is worthy of note
that the rate of contraction has diminished perceptibly in the last few
weeks. Moreover, the increase in investments appears to reflect a marked
lessening of the pressure that had previously forced banks to throw their
security holdings on the market in an effort to enhance their liquidity.
Bank failures last month numbered only 85 as against 131 In July and 151
In June. Twenty banks reopened with aggregate deposits almost equal
to those of the banks that closed.
The Federal Reserve banks have continued to maintain their holdings of
Government securities at a virtually unchanged level. With rediscounts
still decreasing, the total amount of Reserve credit in use has tended to
decline, rather than advance, in recent weeks. The increase in gold holdings
and the decline in note circulation have combined to strengthen the
reserve position of the banks.
Current Business Conditions According to Statisticians
of National Industrial Conference Board—Improvement of Slightly More Than Seasonal Nature Seen.
"Responding to seasonal influences, conditions in August
and in the first half of September showed improvements in
Important divisions of industry and trade," the Conference
of Statisticians in Industry, operating under the auspices
of the National Industrial Conference Board, stated in its
summary issued on Sept. 20. According to the Board the
net aggregate movement of fundamentals in August showed
a slightly more than seasonal gain over July. "General sentiment," says the Board,"continues to favor at least the arresting of the downward movement in coming months." The
Board continues:
The textile industry further consolidated its gains by increased activity
again in August. Additional encouragement was provided during the
month by the extension of advances in wholesale prices from agricultural
to non-agricultural commodities.
Productive activity on the whole showed conflicting movements during
the month. Automobile output declined further, while building and engineering construction showed continuing increases that were counter to the
usual trend at this time of the year. The slackening in steel and iron output
was contrary to seasonal expectations. Bituminous coal produced increased
sharply during August, while anthracite shipments disclosed but a slight
Oct. I 1932
gain over the July total. Electric power generated in August increased
seasonally and showed additional improvement in the first half of September.
The cotton cloth, silk, and woolen industries all showed unmistakable gains
of more than a seasonal amount.
In further detail with respect to production, the number of automobiles
produced in the United States and Canada in August, estimated at 89,850
units, showed a 24% decline under output in July to a level 53% under
output in August 1931. The seasonal movement of the industry at this
time of the year is slightly downward. Retail sales continued to decline.
Building and engineering construction, reflected in the dollar value of
contract awards, continued to increase in August to a total value of
$133,988,100 for 37 States east of the Rocky Mountains reporting to the
F. W. Dodge Corp. The increase over July of 4% was counter to the
seasonal tendency, which at this time of the year is a decline of 2%.
Residential construction increased to a total value of $20,766,800 at a
level that is, however, 65% below that of a year ago. Increases were
registered also in non-residential and in public works and utilities conioni
.
uctel
strs
Steel ingot
got production per day of operation in August declined as corn.
pared with July to a daily average of 30,830 gross tons. The decline of
3%, moving contrary to the seasonal change usual betwr•en the two months,
brought output to a level 53% under that of a year ago. Unfilled orders
of the United States Steel Corp. increased slightly to a total at the end
of August of 1,969,595 gross tons. The increase of 3,293 tons was the
first in 16 months. Pig iron production also declined to an average daily
output in August of 17,115 gross tons. This contraction was also counter
to seasonal expectations.
Bituminous coal produced showed a sharp increase in August to a total
estimated output of 22,470,000 net tons. The 26% increase compared
favorably with the average upturn of 12.5% observed in recent years.
Anthracite shipments increased slightly to a total for the month
of
2,723,050 net tons for companies reporting to the Anthracite Institute.
Electric power generated in August, averaging 1,428 million kilowatt
hours per week, showed an approximately seasonal gain over July,
with
continued seasonal increases in output registered during the first half
of
September. August power generated was about 12% under that during
the
same month a year ago. The increase was confined almost entirely to
the Atlantic seaboard.
Increased activity in the textile industry was registered in August with
production in the cotton, silk and woolen divisions showing sharp gains.
Retail prices of apparel have become firmer in the past few weeks.
The distribution of commodities by rail freight increased by 8%, an
approximately seasonal amount in August as compared with July. Total
carloadings, averaging 521,500 cars per week, were at a level 30% under
loadings in August 1931. Shipments of merchandise and miscellaneous
commodities, averaging 353,300 cars per week, increased by 6%, which
amount is also approximately seasonal. These loadings were at a level 29%
under those of a year ago.
Department store sales in August turned upward by 12% in dollar values
over their level in July, following sharp contraction in the latter month.
The gain for the month compares well with seasonal expectations, though
they are still at a level approximately 25% under what they were a year
ago. September sales to date show continuing seasonal improvement in
various important sections of the country. The dollar value of five and
ten
cent store sales fell off slightly during August.
Prices of commodities at wholesale continued their upward course
in
August and the first half of September with gains extending into
nonagricultural commodities. The increase of approximately 1% between
August and July brought prices to a level 10% under the average for
August 1931. Textiles, metals and metal products showed gains, while
building material items held firmly against further downward tendencies.
Commercial failures during the month, estimated by Dun's at 2,796 in
number, Increased by 8% over their number in July to a level 44%
above
that of a year ago. The movement was against seasonal expectations. Liabilities incurred, on the other hand, declined by 12% to a total of
$77,031.200, which is 45% above the amount incurred in August 1931.
Preliminary estimates of employment in manufacturing industries in
August showed a marked gain over conditions in July, compensating for
the
low level in that month brought about by widespread suspensions of a
temporary nature. Hourly and weekly earnings and the cost of living
declined slightly.
Altogether, business conditions in August showed net aggregate improvement of slightly more than a seasonal nature. The turn in events, as
reflected in accomplishments in production and trade, still awaits
an
upturn in activity in the heavy industries. But the retention of
business
confidence and the general strengthening of commodity prices in
recent
weeks remain the best evidences of an improved underlying situation.
Decrease of About 131
,% Reported in August Sales of
Chain Stores by New York Federal Reserve Bank
as Compared with Year Ago.
Plc The Oct. 1 "Monthly Review" of credit and business
conditions of the Federal Reserve Bank of Now York had
the following to say regarding chain store sales in the Second
Federal Reserve District:
August sales of the reporting chain stores In the Second (New York)
district averaged about 1334% smaller than in the previous year. which
is a slightly larger decline than in other recent months despite the fact
that there was one more selling (lay in August this year than In 1931.
The grocery and candy chains continued to report comparatively small
reductions from a year ago. but ten-cent. variety, and drug chain
organizations showed reductions of slightly more than 15%. and the shoe
chains
again reported a large drop in the dollar volume of sales.
Grocery and shoe chains had slightly smaller decreases In sale per
store
than in total sales, reflecting a decline in the number of units operated,
while other types of chains which have Increased the number of stores
over a year ago, reported larger declines in unit sake than in the total.
,Tape of Store.
Pereentage Change August 1932
compared with August 1931.
Number o/
Stores.
Total
Sales.
Sales per
Store.
Grocery
Ten-cent
Drug
Shoe
Variety
Candy
—0.5
+1.4
+0.2
—2.3
+3.7
+12.6
—0.3
—103
—17.4
—25.0
—15.3
—3.6
—5.8
—17.5
—17.6
—23.2
—18.3
—14.3
Total
+0.8
—13.6
—14.3
Financial Chronicle
Volume 135
Monthly Indexes of Federal Reserve Board-Industrial
Production Increased from July to August.
The Federal Reserve Board, under date of Sept. 24, issued
as follows its monthly indexes of industrial production,
factory employment, &c.:
BUSINESS INDEXES.
(Index numbers of the Federal Reserve Board 1923-25=100).0
Adjusted for
Seasonal Variation
1932.
Aug.
Industrial production, total
Manufactures
Minerals
Building contracts, value b-Total_ _ _
Residential
All other
Factory employment
Factory payrolls
Freight-car loadings
Department store sales
1931.
July.
p60
p60
p64
p29
pll
p44
58.8
51
66
Without
Seasonal Adjustment.
Aug.
1932.
Aug.
58
57
64
27
11
40
68.3
78
78
79
59
33
81
74.1
51
67
72
88
1931.
Aug.
July.
p60
p59
p65
p31
p11
948
58.6
40.1
63
950
56
55
62
31
12
46
57.2
39.6
51
47
78
77
82
63
32
87
74.2
64.3
76
67
INDUSTRIAL PRODUCTION-INDEXES BY GROUPS AND TN DUSTR1ES.a
(Adjusted for seasonal varlet ons.)
Manufactures.
Group and
Industry.
1932.
Mining.
Industry.
1931.
Aug. July. Aug.
Iron and steel
Textiles
Food products
Paper and printing ...
Lumber cut
Automobiles
Leather and shoes_ -_
Cement
Petroleum refining_
Rubber tires
Tobacco manufac_ _ _ _
23
p89
p83
__
25
p23
983
48
__
__
108
25
69
81
584
27
33
p77
50
141
89
114
Aug. July. Aug.
Bituminous coal
Anthracite coal
Petroleum
Iron ore
Zinc
Silver
Lead
50
99
88
105
38
52
102
83
161
94
118
1931.
1932.
950
p48
p103
8
31
41
33
46
55
104
8
34
40
31
70
62
107
59
49
45
66
Employment.
1931.
1932.
Aug. July
Payrolls.
1932.
1931.
1932.
1931.
Aug. Aug. July. Aug. Aug. July. Aug.
Iron and steel
50.6 52.1 70.3 50.4 51.4 69.9 22.1 22.2 50.6
Machinery
46.4 48.3 67.7 46.4 48.4 67.7 27.1 28.8 54.9
Textiles, group
64.8 56.9 80.9 62.3 53.9 77.8 42.3 32.5 70.2
Fabrics
66.1 58.6 80.1 63.8 56.4 77.4 42.1 34.4 68.3
Wearing apparel_
61.5 52.9 83.2 58.4 47.5 78.9 42.6 28.6 74.2
Food
81.0 79.4 88.1 80.7 79.3 87.9 67.9 68.3 86.7
Paper and printing
80.4 81.4 93.0 79.3 80.5 91.7 67.0 69.1 93.1
Lumber
35.7 36.1 51.1 36.4 36.3 52.1 19.3 19.0 41.3
Transportation equipment._ _ 44.8 49.3 58.3 45.1 49.2 58.7 31.6 37.3 50.9
Automobiles
49.8 58.1 64.2 50.8 57.9 65.4 32.7 43.4 50.4
Leather
74.0 71.9 84.3 76.1 71.6 86.7 61.7 46.2 75.5
Cement, clay & glass
40.5 43.1 60.1 42.1 43.4 62.6 23.9 24.4 48.1
Nonferrous metals
46.4 46.0 63.1 45.8 45.4 62.3 28.9 29.4 52.9
Chemicals, group
74.0 74.7 86.6 72.2 72.3 84.4 60.0 60.0 80.4
Petroleum
74.4 75.7 84.8 75.8 77.4 86.4 68.2 68.9 85.6
Rubber products
62.7 64.6 70.5 63.6 65.0 71.5 41.5 45.9 62.2
Tobacco
79.1 08.3 68.4 79.1 49.4 51.4 66.3
a Indexes of production. car loadings. and department store sass based on daily
averages. p Preliminary. y Revised. bRevised index based on 3-month moving
averages, Centered at 2nd month. See Federal Reserve Bulletin for July 1931.
"Annalist" Weekly Index of Wholesale Commodity
Prices Again Lower-Monthly Average Higher.
The "Annalist" Weekly Index of Wholesale Commodity
Prices dropped again to 94.0 on Sept. 27, with a loss of 0.9
points for the week. The monthly average for September,
however, advanced 1.0 to 95.2, the decline in the latter part
of the month being insufficient to cancel the previous weeks'
gains. The "Annalist" also states:
The loss in the weekly index was almost entirely due to sharp reductions
last week in the price of refinery gasoline on the Atlantic seaboard, consequent upon high gasoline stocks, lower crude prices and excessive crude
production. Had it not been for the reduction in gasoline the index would
have shown only an insignificant loss, explainable by what was probably
the commencement of the usual autumnal decline in hog prices. The other
commodities were generally steady or higher, the chief exceptions being
declines in cattle, the meats and hides.
THE "ANNALIST" INDEX OF WHOLESALE COMMODITY PRICES.
(Unadjusted for seasonal variation.) (1913=100.)
.d.ocociqc
.4c4r.:coovn.140
77.3
98.6
*79.1
130.7
97.1
106.2
95.2
83.1
94.0
ommomwvco,
Sept. 27 1932. Sept. 20 1932. Sept. 29 1931.
"ANNALIST" WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
.
(Unadjusted for seasonal variation.) (1913=100.)
(Monthly averages of weekly f gures.)
Sept. 1932.
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
*Preliminary.
77.5
99.8
*79.3
136.2
97.2
106.3
95.2
82.0
QS 2
x Revised.
P. C. of Accounts
Outstanding
J•dy 31
Collected in
August.
Percentage Change from
a Year Ago.
Net
Sales
August.
Adjusted for Sea Without Seasonal Without Seasonal
sonal Variations.
Adjustment.
Adjustment.
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
All commoditipa
e Preliminary.
x Revised.
The New York and Rochester stores showed much the same reductions
In daily average sales as in the previous month, and the Newark stores
reported the smallest decrease in several months. In other localities of
the district, however, daily average sales of the reporting stores generally
showed somewhat larger year-to-year reductions than in July. The
daily rate of sales in the leading apparel stores also showed a somewhat
larger decline than in July.
During the first half of September, department store sales in the metropolitan area of New York declined only 17% from the corresponding period
of last year, the smallest decline since January.
Stocks of merchandise on hand at the end of August, at retail valuations,
continued to show a progressive decline from a year ago, and the percentage of charge accounts collected during August was again somewhat
lower than last year.
Locality.
FACTORY EMPLOYMENT AND PAYROLLS-INDEXES BY CROUPS
AND INDUSTRIES.
Group and Industry.
2233
New York Federal Reserve Bank on Department Store
Trade in New York Federal Reserve District
During August-Total Sales 16% Below Those of
August 1931.
In its Oct. 1 "Monthly Review" the Federal Reserve
Bank of New York states that "total August sales of reporting department stores in the Second (New York)
Federal Reserve District were 16% below the previous
year, the smallest reductian in monthly sales since February,
but," continues the Bank "the decline in average daily
sales was about the same as in other recent months, as in
the various localities of this district there were 1 3,.2 or two
more shopping days in August this year than in 1931."
Continuing, the Bank also said:
Aug. 1932.
74.5
98.7
x71.7
143.4
95.9
106.6
95.2
79.7
942x
Sept. 1931.
83.6
111.9
88.7
126.2
101.3
115.0
97.2
88.1
lea, K
New York
Buffalo
Rochester
Syracuse
Newark
Bridgeport
Elsewhere
Northern New York State_
Southern New York State_
IlucLson River Valley Dist_
Capital District
Westchester
All department stores
Apparel stores
--15.4
--26.0
--20.7
--31.5
--10.2
--22.2
--23.8
28.4
--22.8
26.6
--20.5
25.7
--16.3
--22.0
Net Sales
Stock on
IIand End
Jan. to
August. of Month.
--21.3
--23.6
--24.9
--28.6
--18.9
--25.9
--22.8
--26.0
--27.0
--27.3
--19.0
--20.0
--I4.6
--15.6
1931.
1932.
36.4
43.0
34.4
23.7
33.1
34.6
29.0
34.9
40.6
37.3
21.0
29.2
32.4
25.0
_
-21.4
-25.2
34.8
34.8
-24.3
-27.5
32.4
35.5
August sales and stocks in the principal departments are compared
with those of a year previous in the following table:
Net Sales
Percentage Change
August 1932
Compared with
August 1931.
Toilet articles and drugs
Woolen goods
Hosiery
Men's furnishings
Men's and boys' wear
Women's ready-to-wear accessories
Silks and velvets
Cotton goods
Toys and sporting goods
Shoes
Books and stationery
Luggage and other leather goods
Linens and handkerchiefs
Home furnishings
Silverware and jewelry
Furniture
Women's and misses' ready-to-wear
Mustca instruments and radio
Miscellaneous
Stock on Hand
Percentage Change
Aug. 311932.
Compared with
Aug. 311931.
+3.4
+1.6
--29.1
--40.3
--26.9
--22.8
--30.9
--26.8
--26.4
--20.1
--22.9
--26.9
--33.2
--24.4
--25.1
--15.9
--32.5
--41.5
--32.2
--3I.6
1-0.2
--7.6
--8.4
--9.0
--11.3
--13.4
--13.5
--14.6
--14.9
--15.9
--16.6
--16.7
--17.6
--20.3
--24.2
--27.4
--57.5
--8.6
No Change in Wholesale Prices During Week Ended
Sept. 24 According to United States Department
of Labor.
The Bureau of Labor Statistics of the U. S. Department
of Labor announces that the index number of wholesale
prices for the week ended Sept. 24 sianda at 65.4 as compared with 65.4 for the week ended Sept. 17. In stating
this, the Bureau also said as follows on Sept. 28:
This index number, which includes 784 commodities or price series,
weighted according to the importance of each article and based on the
average prices in 1926 as 100, shows that no change has taken place in the
general average of all commodities for the week of Sept. 24, when compared
with the week ending on Sept. 17.
The accompanying statement shows the index numbers of groups of
commodities for the weeks ending Aug. 27 and Sept. 3, 10, 17 and 24:
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF AUG. 27.
SEPT. 3, 10, 17 AND 24.
WEEK ENDED
All commodities
Farm Products
Foods
Hides and leather products_
Textile products
Fuel and lighting
Metals and metal products_ _
Building materials
Chemicals and drugs
Ilouseturnishing goods
Miscellaneous
Aug. 27.
Sept. 3.
Sept. 10.
Sept. 17.
Sept. 24.
65.2
49.5
61.6
70.8
54.0
72.7
80.0
69.6
73.0
74.9
64.4
65.5
50.4
61.6
70.6
59.2
72.2
80.2
69.9
73.2
74.8
64.7
65.7
50.4
02.3
71.4
56.2
71.9
80.4
70.2
73.0
74.6
64.5
65.4
49.2
62.1
72.4
56.2
71.8
79.6
70.4
73.0
74.6
65.1
65.4
49.3
62.1
73.2
66.4
71.7
80.1
70.7
72.9
74.6
64.9
Financial Chronicle
2234
Salaries and Wages Reduced 10% by United Press.
The United Press has reduced salaries and wages 10% of
all employees except those covered by union contracts
according to the "Wall Street Journal" of Sept. 26.
Chain Store Sales Lower in August.
A compilation by E. A. Pierce & Co. of this city showing
sales by chain stores throughout the country, follows:
Aug. 1932.
Grocery ChainsGt. Atlantic & Pacifica _ 379,316,702
16,886,129
Safeway Stores_ b
15,226,560
Kroger Grocery_ b
9,919,823
American Stores_ e
8,041,562
First National Stores_d
4,698,048
National Tea_c
2,955,353
H. C. Bohack_t
2,275.562
Grand Union_ d
Daniel Reeves-4
1,627,827
Dominion Stores_ h
1,540,981
755,629
Jewel Tea..b
415,166
Winn & Lovett Grocery
% Decrease
from
Aug. 1931.
8 Mo.
1932.
% Decrease
from
8 Mos.1931.
3802,159,472
143,682,068
134,426,703
79,141,650
66,953,238
41,502,282
22,097,486
19,859,310
17,969,089
15,359,652
6,820,115
3,385,450
14.3
x
14.0
15.3
4.4
13.8
8.9
13.3
15.3
9.9
20.2
3.4
$143,459,337
y15.0
$1,153,356,515
Y13.5
5 & 10-Cent & $1 Chains
$18,244,094
F. W. Woolworth
8,804,746
S. S. Kresge
5,054,598
W.T. Grant
4,861,610
S. H. Kress
2,627,253
McCrory Stores
2,548,413
J. J. Newberry
1,448,946
McLellan Stores
1,361,401
G. C. Murphy
Neisner Bros
1,026,698
215,469
M.H.Fishman
15.9
19.7
6.3
8.0
18.2
2.3
14.8
10.3
15.0
15.1
$154,637,320
78,592,777
42,987,623
38,530,094
24,411,551
19,400,209
11,773,355
11,040,880
9,070,625
1,526,068
14.2
$389,970,502
8.5
$91,484,215
13,705,677
11,370,548
9,192,796
7,838,641
2,334,265
11.5
15.5
17.2
26.2
25.8
20.0
Total
Total
346,193,228
Apparel & Dept. Chains
$10,752,213
J. C. Penney
1,408,148
Lerner Stores
1,147,966
Interstate Dept. Stores
985,571
Consolidated Retail Stores
723,625
Lane Bryant
159,600
Sally Frocks
Total
Drug ChainsWalgreen
Peoples Drug
Total
Shoe ChainsMelville Shoe
Schiff Co
Total
Restaurant ChainsWaldorf System
Bickford's
Exchange Buffet
Total
AfticelitmeousWest'n Auto SUP.(K.C.)_
oPNWt6W1,-.
15.6
x
15.0
18.2
0.4
18.9
14.4
17.0
16.3
14.2
21.4
6.5
10.6
13.8
1.8
8.6
5.3
8.4 Inc.
8.0
3.8
8.0
0.7 Inc.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
PRICES (1926-1928=100).
Per Cent
Each Group
Rears to the
Total Irides.
23.2
18.0
12.8
10.1
8.5
6.7
8.6
6.2
4.0
3.8
1.0
.4
.4
.3
100.0
Group.
Foods
Fuel
Grains, feeds and livestock
Textiles
Miscellaneous commodities_
Automobiles
Building materials
Metals
House-furnishing goods.
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizer
Agricultural implements_ _ _
All grouts combined
$135,926,142
14.7
$3,663,330
1.224,489
20.8
12.2
$30,950,803
10,719,188
15.7
8.3
$4,887,819
18.8
$41,669,989
13.5
Weeks Ended.
$1,143,243
600,543
37.4
16.7
$13,608,847
5,653,853
23.4
13.6
31,743,786
31.5
319,262,700
20.8
31.045,282
549,811
325,340
16.1
12.4
10.5
$9,439,116
4,690,427
2,963,642
8.2
9.8
18.2
31,920,433
14.2
$17,093,185
10.6
Apr. 2 ____ 1,480,208,000 1.679,764,000
Apr. 9 ___ 1,485,078.000 1,847,078.000
Apr. 16 ...-- 1,480,738,000 1,841,253.000
Apr. 23
1,469,810,000 1,675,570,000
Apr. 30 ____ 1,454,505,000 1,844,437,000
May 7
1,429,032,000 1,637,298,000
May 14 ____ 1,436,928,000 1,654,303,000
May 21 ____ 1,435,731,000 1,644,783,000
May 28 -___ 1,425,151,000 x1,801,833.000
June 4 ____ x1,381,452,000 1,593,822,000
June 11 ____ 1,435,471,000 1,821,451,000
June 18 --- 1,441,532,000 1,809,931.000
June 25 -___ 1,440,641,000 1,634,935,000
July 2 ____ 1,458,961,000 z1,607,238,000
July 9._ z1,341,730.000 1,603.713,000
July 18 -___ 1,415,704,000 1,644,638,000
July 23 -___ 1,433,993,000 1,850,545.000
July 30 -___ 1,440,388,000 1,894,089,000
Aug. 6 -___ 1,426,986,000 1,642,858,000
Aug. 13____ 1,415,122,000 1,629,011,000
Aug. 20 --- 1,431,910,000 1,643,229,000
Aug. 27 -___ 1,436,440,000 1,637,533,000
Sept. 3---- 1,464,700,000 1,835.623.000
Sept. 10 ____ 1,443,977,000 1,582.287,000
Sept. 17___ 1,476,442,000 1,622,660,000
Sept.24 ___ 1,490,863,000 1,660,204,000
MonthsJanuary-- 7,014,066,000 7,439,888,000
February _ - _ 6,518,245,000 8,705,564,000
March
8,781,347,000 7,381,004,000
April
6,303,425,000 7,193,691,000
May
6,212,090,000 7,183,341,000
June
8,130,077,000 7,070,729,000
July
8.112.175.000 7.288.576.000
1,336,800
67,391,000
10.9
y15.5
5.3 Inc.
$1,764,670,033
y12.5
'Mail Order;ears, Roebuck_ b
Siontgomery Ward
$17,258,862
12,988,264
27.4
20.8
8162,845,230
108,018,764
21.9
22.6
330,247,126
24.7
3270,863,994
22.2
3244,965,852
y16.8
$2,035,534,027
y14.0
a Five weeks and 35 weeks ended Sept. 3. b Four weeks and 32 weeks ended
Aug. 13. c Four weeks and 32 weeks ended Aug. 10. d Four weeks and 34 weeks
ended Aug. 27. e Five weeks and eight months ended Sept. 3. t Five weeks and 34
weeks ended Sept. 3. 4 Four weeks and eight months ended Aug. 27. h Four weeks
and 35 weeks ended Aug.27. x Comparable figures for 1931 not available. 9 Safeway
figures Included in totals, but not considered in computing percentage decrease.
National Fertilizer Association Reports Slight Change
in Level of Wholesale Prices-Index Shows Decrease
of One Fractional Point During Week Ended
Sept. 24.
There was only a slight change in the general level of
wholesale prices during the latest week, according to the
index of the National Fertilizer Association, which is computed each Monday. The latest index number for all commodities is 52.2, one fractional point lower than it was a week
ago. During the preceding week the index declined four
fractional points. The index number stands at the exact
location of a month ago and almost three full points higher
than the 1932 low point (59.6) recorded in June. (The three
year average 1926-1928 equals 100.) Further reporting as
to the course of wholesale prices, the Association also said as
follows under date of Sept. 26:
During the latest week, price changes affected eight of the 14 groups
listed in the index. Four groups advanced and four declined. Foods,
textiles, fats and oils and miscellaneous commodities were higher. Grains,
feeds and livestock, metals,fertilizer materials and fuel, including petroleum
and its products, were lower. The textile group was the only group that
advanced materially. The sharpest decline was marked in the fuel group,
due to the rather large drop In gasoline.
Price changes were fewer during the latest week. Twenty-nine commodities advanced and 22 declined. During the preceding week, 43 commodities showed price losses, while 22 showed price gains. With the exception of gasoline, the price changes during the latest week were comparatively small. Important commodities that advanced were cotton,
wheat, corn, eggs, raw sugar, flour, butter, lard, cottonseed oil, wool, silk,
silver, coffee and rubber. Slightly lower prices were noted for cattle, light
Latest
Week
Sept.24
1932.
Preceding
Week.
Month
Ago.
Year
Ago.
63.8
83.3
43.4
48.9
62.1
89.0
71.4
70.1
77.4
43.3
87.4
81.0
69.0
92.1
63.4
65.4
43.7
48.0
82.0
89.0
71.4
70.2
77.4
42.5
87.4
61.7
69.0
92.1
61.1
67.8
45.1
47.9
60.8
89.0
71.5
68.5
77.7
42.9
87.4
61.8
71.0
92.1
73.5
58.5
51.4
52.3
88.8
88.6
77.1
77.0
88.8
58.2
86.8
75.0
80.1
95.2
f19 9
Ft9 a
Ft9 R
117.3
Production of Electricity Off 10.2% During Week
Ended Sept. 24.
The production of electricity by the electric light and
power industry of the United States for the week ended
Saturday, Sept. 24, was 1,490,863,000 kwh., according to
the National Electric Light Association. The output for
the Atlantic Seaboard was down 6.9% from the same period
last year and compares with a decrease of 7.3% for the
week ended Sept. 17. New England, taken alone, was
down 6%, against 4.1% in the previous week. The Central
industrial region, outlined by Buffalo,Pittsburgh, Cincinnati,
St. Louis and Milwaukee, showed a decrease of 13.8% corn.'
pared with a decline of 15.3% the week before. The Pacific
Coast was down 8.1%, against a decrease of 5.6% in the
Sept. 17 week.
Arranged in tabular form, the output in kilowatt hours
of the light and power companies for recent weeks and by
months since the first of the year is as follows:
20.8
$214,718,528
weight hogs, cottonseed meal, lead, zinc, pork, potatoes, dried beans and
tallow.
$15,177,123
,.. Total 38 chains
Grand total 38 cos
Oct. 1 1932
1932.
1931.
1930.
1929.
1932
Under
1931.
1,708,228,000
1,715,404,000
1,733,476.000
1.725,209,000
1,698,389,000
1,689,034,000
1,716,858,000
1,723,383,000
1,659,578,000
1,657,084,000
1,706,843,000
1,607,800,000
1,703,782,000
1,594,124,000
1,825,659,000
1,666,807,000
1,686,467,000
1.678,327,000
1,691,750,000
1,877,145,000
1,891,281.000
1,888,352,000
1,850,081,000
1,726,800.000
1,722,059,000
1,714,201,000
1,663,291,000 11.9%
1,898,543,000 11.1%
1,709,331,000 9.8%
1,899,822,000 12.3%
1,688,434,000 11.5%
1,898,492,000 12.7%
1,704,426,000 13.1%
1,705,480,000 12.7%
1,615,085,000 112.2%
1,689,925,000
1,699,227,000 11.5%
1,702,501,000 10.5%
1,723,428,000 11.9%
1,592,075,000 112.8%
1,711.625.000 f
1,727,225,000 13.9%
1,723,031.000 13.1%
1,724,728,000 12.4%
1,729,687.000 13.1%
1,733,110,000 13.1%
1,750,055,000 12.9%
1,761,594,000 12.3%
1,774,58,000 10.4%
1,808,259.000 8.7%
1,792.131,000 11.2%
1,777,854,000 10.2%
8,021,749.000
7,068,788.000
7,580,335.000
7,416,191,000
7,494,807,000
7,239,897,000
7.363.730.000
7,585,334,000
0,850,855.000
7,380,263,000
7,285,350,000
7,486,635,000
7,220,279.000
7.484.727.000
5.7%
y6.1%
8.2%
12.4%
13.5%
13.3%
16.1w.
x Including Memorial Day. y Change computed on basis of average daily reports;
s Including July 4 holiday.
Unfavorable Conditions in Building Material Supply
Trade in New York-Survey Reveals Material Sales
Only Fraction of What They Were Last Year.
From the New York "Herald Tribune" of Sept. 26 we take
the following:
Masons' material dealers and organized employer-and-employee painters
took emergency measures last week to insure peace and profit during the
forthcoming rise in New York building construction activity, writes Allen E,
Beals in the current Dow Service daily building reports.
In the first instance, John A. McCarthy, President of the Masons' Material
Dealers' Association of New York, and Stephen V. Duffy, President of the
Brooklyn and Queens Association of Masons' Material Dealers, called a meeting of affiliated and unaffiliated material supply firms that deliver basic
construction commodities to 90% of all the buildings erected in the five
boroughs and environs of this city and addressed an overture to basic material
manufacturers supplying this market, inviting their adherence to their own
long-established policy of making New York City and neighborhood distribution solely through regularly established service channels as a means of
ending the distress, both current and prospective, that threatens this part
of the trade.
Situation Is Serious.
A joint statement issued by Presidents McCarthy and Duffy to the manufacturers, sub-contractors and masons' supply firms of the New York area,
said:
"Facts must be faced, and it cannot be denied that masons' material
dealers are facing a crisis."
A survey reported that building operations in the New York metropolitan
area during the current season have struck the lowest level in a quarter of
a century. Demand for the products of common brick manufacturers has
Volume 135
Financial Chronicle
been about 11% of normal. During the same period the demand for
plastering materials has not exceeded 15% of the average demand for a
like period in the last five years.
The consumption of cement in this area, according to figures obtained
from the cement manufacturers, represents about 22% of the normal
consumption.
"Building material dealers have cut," said the survey, "to the bone their
overhead and delivery costs, yet their cost of operation averages more than
25% of the selling price to-day and dealers are now operating at a great loss.
"During the last three years losses in this area suffered by contractors,
sub-contractors and material men foot up to an amazing total of $14,000,000.
Of this sum the masons' material group, in this area alone, has incurred
losses of more than $5,000,000.
Many Concerns Out of Business.
"Since' many of the old-time companies have been forced out, others
are now liquidating and others stand now at the brink of bankruptcy, heroic
measures are required. In such a crisis economy, efficiency and ethics
alone will not suffice. Nothing less than the elimination of every item of
waste, excess cost and a living price for construction and materials will
save the situation.
"Manufacturers of masons' materials have borne only a small percentage
of their terrific loss," the report goes on to say, "and that loss, small as it
has been, was largely due to their own carelessness in the extension of
credit."
The masons' material dealers adopted a resolution which will be sent to
material manufacturers that no prices be quoted to any one in the greater
city who is not a recognized dealer.
Survey of Five-Day Work Week By National Industrial
Conference Board.
Some of the findings resulting from a nation-wide survey_
of
the situationin business and_ind_us_try with respect to the
,
adoption
_ of a shorter work period, such as the_five-day
week, were made public on Sept. 27 by the National Industrial Conference Board upon the announcement of the
couipletion of the study. The report_points out impartially
the advantages of a shorter work period in industry, as
well as the complications and difficulties that confront the
proponents of the idea. The Board likewise has the folllowng
to say:
As previously announced by the Conference Board it was found that a
large majority of industrial concerns in the United States have already
adopted some form of spreading work, by operating their plants on a parttime basis, by rotating shifts and staggering work periods, or by a combination of both methods. There is general agreement that the work
period should be shortened, at least during the prolonged period of depression through which the country is now passing.
.This sentiment has resulted in a serious effort to bring about general
adoption of some plan for the better distribution of work. Those engaged
in this movement are reminded by the Conference Board report that there
is a sharp line of division among them. On one side is a group of welfare
and civic organizations, public-spirited citizens, and politicians who want
a five-day week adopted without any reduction in the earning power of
the workers, or, in other words, a five-day week with an increased hourly
wage rate to compensate for the shorter period. On the other side is a
large group of business men and manufacturers who are opposed to any
plan that will increase costs and raise prices. This issue will inevitably
become vital.
Under present emergency conditions, states the report, shorter work
schedules have been put into effect at unchanged hourly rates of pay
without general protest, either because curtailment was recognized as
unavoidable for the time being or because it was understood that the
shorter work schedule would make possible the employment of some who
were without Jobs or income. Ready compliance with such a policy under
normal business conditions is, however, questionable, because a change,
for example, from an eight-hour day to a six-hour day would mean a 25%
reduction in weekly wages.
The report further points out that consideration must be given to the
difference between wage rates per unit of time and wage rates per =it
of product. The piece-worker has it in his power to increase his weekly
earnings by the application of greater effort and increased skill, whereas
the earnings of the hourly-rate worker are absolutely determined by the
number of hours in his weekly work schedule. Thus it might be possible
for the piece-worker to make up for some of the lost time even without a
change of rate, but this would be beyond the power of the hourly-eatr
worker.
Assuming that the earnings of labor will be somewhat reduced in any
event as the result of the adoption of shorter work schedules, the report
considers the broader aspect of such a result.
The Board says:
"Probably a considerable factor in the general activity ofindustry between
1925 and 1929 was the enlarged domestic demand for luxuries as well as
necessities made possible by the relatively high earnings of the great mass
of wage-earners. It has been estimated that about one-half of the annual
expenditures of all people in the United States comesfrom salaried employees
and wage-earners whose average annual earnings are $2.000 or less. To the
extent, therefore, that this purchasing power would be diminished because
of a reduction in earning power, demand for manufactured products would
decrease, and a desirable market that has come to be relied upon, for
which production facilities have been expanded, would be lost."
The Board's announcement further states:
Among the many significant tendencies revealed in the survey is the fact
that the experience of Plant executives in spreading work during the present
depression will probably lead to a more general adoption 'of the five-day
week as a regular operating schedule. In this survey information was
furnished by 1,503 manufacturing establishments, of which 114 were
operating on a five-day schedule. Twenty-five of those companies had
adopted a five-day week before the depression. Of the remaining ge that
had operated on this schedule for the first time during the depression,
47%, or nearly one-half, stated definitely that it was their intention to
continue on it even after business recovery, and another 20% expressed
the opinion that shorter work schedule would probably be permanent,
while about 30% regarded it as purely an emergency measure to continue
only during the depression. Two companies reported that it was definitely
unsatisfactory.
From the wage-earner's standpoint, notes the report, there is no ciPubt
that the shortened work period in the form of fewer working days per week
would be much more popular than in the form of fewer working hours per
2235
day, for the reason that concentrated leisure is more usable than a similar
amount of free time broken up into small daily installments.
Poll Conducted by Distributors Group, Inc., Indicates
Confidence of Investment Banking Houses That
Business Recovery Is Under Way.
Confidence among investment houses and banks throughout the country that the long process of recovery is at last
actually under way is shown by a preliminary tabulation
of the results of a poll now being conducted by Distributors'
Group, Inc., sponsors of North American Trust Shares. It
is stated on Sept. 27 that "questionnaires" were sent out
five days prior to that date to 1,441 investment houses
affiliated with that organization, with the request that they
be filled in and returned immediately. To date 351 have
been received from 27 States. Of this total 84% declare
that the turn has come in general business and 86% state
that the turn upward in securities prices is behind us. It is
further stated:
The importance of this evidence of improvement in business and security
conditions may be judged from the fact that the sources of the replies
are leading investment dealers in major trade areas.
The question asked all 1,441 investment houses and banks was: "Do
you personally believe that the turn has come and that the underlying trend
is now upward—(a) in general business; (b) in security prices?" A "Yes"
or "No" was called for.
Following is a detailed tabulation of the returns summarized above:
Q. Turn in general business? Ans. Yes, 295; No, 41; indefinite, 15.
Q. Turn in securities prices? Ans. Yes, 302; No, 29; indefinite, 20.
At the time of release Distributors' Group, Inc., reported that the replies
which have been received and tabulated thus far are so overwhelming in
their confidence as to definitely indicate the results of the complete tabulation when it is completed.
At the time of analysis the poll had already covered 27 States, as follows:
Alabama, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas,
Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota,
Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio,
Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, West
Virginia.
Hugh W. Long, newly-elected President of Distributors' Group, Inc., made
the following statement:
"In releasing the information which this tabulation shows in advance of
final tabulation, we are acting in the belief that the findings are of national
importance. We have been reminded many times that the group of independent investment houses associated with us in the distribution of North
American Trust Shares is fairly representative of the investment profession as a whole. This is true not only because of the representative character of these houses but because of their geographical position.
"We have not yet had time to tabulate the answers to the 10 other
questions asked, but we shall do so as quickly as possible. We feel that the
information obtained from the first question is too significant to permit
delay. Our purpose in making the poll of dealer opinion was to determine
the sentiment of an important cross section of the country with regard to
major questions of the day and to seek guidance from men who, by the
very nature of their business, are especially familiar with and influenced
by conditions In large and small communities throughout the United
States."
European Unemployment at Record Level, According
to Reports to Department of Commerce—Figures
from League of Nations and Other Sources.
European unemployment, as shown by official relief
figures at the end of June, latest month for which figures
are obtainable, was the highest on record for the mid-year,
the spring decline, which normally begins in March or April
and reduces the total to the year's low in about June or July,
having been disappointing, according to reports to the Commerce Department's Regional Division. The advices
Sept. 22 from the Department state:
The 20 European countries regularly reporting unemployment statistics,
with one exception (Poland), showed heavier—and, in most cases, very
much heavier—unemployment last winter than in that of 1930-31, the
figures being the highest on the records, which for most countries go back
to 1921. The slightly lower Polish figure results from the removal of certain categories from eligibility for relief, rather than from I. creased employment. With the same nominal exception, the totals for the end of
June this year were above those for 1931, or any previous year.
It is significant that registered unemployment has increased in spite of
restrictions on eligibility for relief adopted in several countries (notably
England and Germany), which would tend to reduce the number reporting.
Except for small recessions in March-May and October-December 1931.
British unemployment rose steadily from the summer of 1929 to January
of this year. The figure then dropped somewhat until May when a further
rise started, which in August carried the total for the first time above
2,900,000. There was a 50% increase In German unemployment from June
1931 to January of this year, when it passed 6,000,000. The total has
subsequently declined to 5.383,000 on Aug. 15. largely, however,as a result
of further restrictions in eligibility for relief.
The accompanying table, based on the figures as given in the "Monthly
Bulletin of Statistics" of the League of Nations and on other official publications, shows unemployment as reported for 20 European countries. The
figures must not be taken as a measure of total unemployment in any
country—they represent usually the number of those wholly and partially
unemployed who are eligible for relief, excluding Important categories of
labor (such as, in some cases, domestic, clerical and agricultural labor or
non-union labor). Certainly total unemployment is greater than the figures indicate; in the case of France, for example, an official estimate places
actual unemployment at four times the reported figure.
As the basis of computation varies widely, comparisons of one country
with another cannot accurately be made. The figures are, therefore, to
be considered rather as indexes than as absolute measures; they do indicate
the trend of unemployment in each country and, in the aggregate, fairly
represent the situation in Europe as a whole.
Financial Chronicle
2236
REPORTED UNEMPLOYMENT IN EUROPE (In Thousands).
Basis
of
Calculation.
Country.
Austria
Belgium
Czechoslovakia_
Denmark
Estonia
Finland
France
Germany
Hungary
Irish Free State_
Italy
Latvia
Netherlands
Norway
Poland
Rumania
Sweden
Switzerland_ __ _
United Kingdom
Yugoslavia
a End
1929-30 1930-31 1931-32 1930 1931 1932
Compulsorily insured
285
Unemploy.Ins.societies
48
134
Registered unemployed
63
Trade unionists
Registered unemployed
6
do
13
do
15
do
do
do
do
3,366
Trade unionists
23
24
Registered unemployed
do
do
489
9
do
do
Unemploy.ins.societies
56
23
Registered unemployed
289
do
do
do
do
16
Trade unionists
54
22
Unemployment funds
Compulsorily insured 1.583
Registered unemployed
12
of May
End of June.
Winter High.
334
207
344
73
7
12
72
4,972
23
29
792
10
109
29
372
43
83
61
2.697
14
362
150 191 265
363
54 167 a352
634
73 220 458
30
34
25
109
9
1
1
5
21
4
6
13
Si 295
347
10
6,128 2,641 3,954 5,476
34
24
29
20
31
23
71
19
344 598 937
1,174
26
1
2
a8
24
56 152
186
14
23
28
38
360
205 275 245
23
28
34
57
46 a76
110
29
47
23
103
2,855 1,912 2,736 2,843
6
23
7
11
b Not available.
Increases Noted in Wholesale and Retail Trade Conditions in Chicago Federal Reserve District by
Federal Reserve Bank of Chicago.
The Federal Reserve Bank of Chicago, in its Sept. 1 "Business Conditions Report," states that "August, with two more
trading days than in the preceding month and one more than
last year, showed heavier gains than usual over July and
smaller declines from a year ago than a month previous for
several phases of merchandising activity in the Seventh
(Chicago) District." Continuing, the Bank also said:
In wholesale trade, grocery sales expanded 9% over the preceding month,
hardware 4%, dry goods 26%, drugs 14%, and shoes 58%, while electrical
supplies declined 3% in the comparison. The gains in groceries, dry goods,
drugs, and shoes were greater than seasonal, and that in hardware was
contrary to trend. The recession in the electrical supply trade was much
smaller than last year, when a 16% decline was recorded. The grocery, hardware and drug trades likewise showed moderate declines last August, as
against the increases for the current period. Comparisons with a year ago
were more favorable in all groups than in July, which month in general
had shown the heaviest decreases yet recorded in tlois comparison. For the
first eight months of 1932 declines from the same period of 1931 totaled
as follows in the various lines: Groceries 22%, hardware 27%, dry goods
33%, drugs 22%, shoes 42%, and electrical supplies 43%. Reports indicate a continued tendency toward steadiness in prices.
WHOLESALE TRADE IN AUGUST 1932.
Per Cent Change
From Same Month Last Year.
Net
Sales.
Stocks,
Accts. Outstanding.
Collections.
Ratio of
Accts. Outstanding to
Net Sales.
--24.3
--28.8
-31.4
--22.1
--34.8
--43.0
--25.4
-17.i
--35.9
--I8.2
--28.6
-31.4
--14.4
--15.7
--29.8
--3.8
--48.8
--23.6
--27.0
-32.3
--30.8
-23.1
-24.9
--47.2
110.2
333.7
332.0
239.9
267.3
244.7
Commodity.
Groceries
' Hardware
Dry Goods
Drugs
Shoes
Electrical supplies
The increase of 12% in August department store trade, as compared with
the preceding month, equaled the expansion shown in the 10-year average
for the period and contrasted with a gain of only 7% in the corresponding
month last year. Conditions varied considerably as among the various
cities of the district, sales in Detroit gaining but 5%, those in Milwaukee
10%, while Chicago stores recorded a 13% increase, Indianapolis firms one
of 14%, and the total for stores in smaller cities gained 22%. Daily
average sales, however, showed an expansion for the district of only 51
/
2%
in August over July. The decline of 281
/
2% from last August in the total
somewhat
was
smaller than in a similar comparison for July, but the
decrease in daily average sales was slightly heavier than that shown in the
aggregate. The first increase in stocks since the end of March took place
on Aug. 31, but the gain of 1% over July was considerably less than
seasonal. The rate of stock turnover for the month was the some as
that a year ago.
DEPARTMENT STORE TRADE IN AUGUST 1932.
Per Cent Change
August 1932
from
August 1931.
Locality.
Chicago
Detroit
Indianapolis
Milwaukee
Other cities
Seventh District
P.C.Change
1st 8 Mos.
1932 from
Same
Period 931
Ratio of August
Collections
to Accounts
Outstanding
End of July.
Net
Sales.
Stocks End
of Month.
Net
Sales.
1932.
1931.
-26.3
-30.7
-26.1
-27.5
-32.8
-33.5
-20.2
-23.6
-23.2
-23.1
-28.1
-25.0
-22.4
-26.4
-28.3
21.0
25.0
33.6
29.2
23.4
26.8
28.2
36.1
32.7
28.3
-28.5
-27.7
-26.9
24.8
28.3
1 4% in August over
Retail shoe trade in the Seventh District increased 2,
the level of the preceding month, contrary to seasonal trend, and sales
totaled about one-third less than those of last August, according to reports
furnished by representative dealers and department stores. In the eight
months of 1932 sales were 26% less than in the same period of 1931.
Stocks increased 8% in August but are being held to a lew level.
The increase of 33% over July in August furniture sales compared with a
seasonal gain of 27% for the month. The expansion this year, as reported
by dealers and department stores, compared with an increase of only 18%
In August 1931, while the gain in installment sales of 46% compared with
one of 19% last year. Both total and installment sales in the current
period were approximately one-third below August a year ago. A further
decline took place in stocks during the period, and they remained well
below last year.
Most lines of chain store trade reporting to this bank showed a decrease
in sales during August, so that the total for 14 chains was 4% below July
and almost 20% under August a year ago. The data cover sales by grocery,
drug, five and ten cent stores, cigar, shoe, men's clothing and musical
Mstrument chains.
Oct. 1 1932
Employment and Payrolls in Chicago Federal Reserve
District Show Decline During Period from July 15
to Aug. 15-Due Largely to Curtailed Operations
in Automobile Plants.
Curtailed operations in automobile plants were largely
responsible for the further loss shown during August in
Seventh (Chicago) District employment and earnings, the
total for 10 manufacturing groups declining 3% in number
employed and 8% in payrolls. The Sept. 1 "Business Conditions Report" of the Chicago Federal Reserve Bank, in
noting this, also said as follows:
Five of these industries not only increased the number of wage earners
but also had heavier payrolls-leather products, textiles, wood products,
food and metals; the gains in leather products and metal also were seasonal
in nature. The curtailment in the vehicles group was the largest yet
recorded for August, and contrasted with gains in several previous years,
and the recession in the paper and printing group was contrary to trend for
the month.
In non-manufacturing groups two of the industries, coal mining and
construction, gained in both employment and wage payments, but the large
increases shown in coal mining were again of little importance because the
nine reporting mines had only 628 employees. The merchandising and
public utility groups followed the downward trend of the district in
number employed, the former, however, registering a slight gain in
payrolls.
The percentage decline in total employment during August was slightly
less this year than in 1931, but payroll reductions aggregated much
heavier, the loss of 6% in the latter item comparing with a recession of
only 1% last year. Current data, therefore, show that the number of men
employed remained about 22% smaller than a year ago, while their earnings
dropped to almost 40% below the same period of 1931 as against a decline
for July in this comparison of but 34%.
EMPLOYMENT AND EARNINGS-SEVENTH FEDERAL RESERVE
DISTRICT.
Per Cent Chancey
from July 15.
Week of Aug. 15 1932.
Industrial Group.
No. of Number
Reportof
ing
Wage
Firms. Earners.
Metals and products_a
Vehicles
Textiles and products
Food and products
Stone, clay and glass
Wood products
Chemical products
Leather products
Rubber products b
Paper and printing
718
151
140
331
142
261
100
70
7
294
108,573
171,262
26.696
57,331
6,489
18,559
12,204
15,184
4.895
37,257
Total manufact., 10 groups- - 2,214
Merchandishrs_c
162
Public utilities
73
Coal mining
9
Construction
338
458,450
25.228
80,412
628
10,419
Total non-mfg., 4 groups- --Total, 14 groups.
a Other than vehicles.
582
116,687
Wage
Earners.
EarnInes.
+0.8
-10.0
4.3.5
--1.8
-I-3.3
--1.3
+7.2
--10.7
--I.5
+8.1
-23.1
1-35.6
+0.8
-0.9
-I-9.0
-2.9
-I-20.8
+0.7
-1.6
8,168,000
-3.4
8548,000
--1.1
2.318.000
-1.3
7,000 +210.9
227,000
+5.6
-8.0
+0.1
--1.2
-I-71.4
d-9.3
Earnings.
$1.693,000
3,264,000
382,000
1,122.000
115,000
213,000
251,000
228.000
98,000
802,000
+1.5
53,100,000
--0.4
--0.1
2,796
575,137 $11,268,000
-2.8
-6.0
b Michigan and Wisconsin. c Illinois and Wisconsin.
Sales of Automobiles at Wholesale in Middle West
Increased 10% in Number During August Over
July According to Federal Reserve Bank of Chicago
-Further Expansion Noted in Orders Booked by
Furniture Manufacturers.
"Distribution of automobiles during August in the Middle
West showed a more favorable trend," says the Chicago Federal Reserve Bank. "Sales at wholesale, as reflected in reports of representative firms, increased 10% In number over
July and 5% in value, while sales to consumers by reporting
dealers were 13
/
4% smaller in number of 5% heavier in
value." The Bank. in its Sept. 30 "Business Conditions
Report," also said:
Used car sales, though slightly under the preceding month, recorded a
decline of only 7% from last year, with half the firms reporting increased
sales in this latter comparison. Stocks of new cars in dealers' hands on
Aug. 31 were but half those of a year ago, and used car stocks remained
substantially smaller. The ratio of deferred payment sales to total retail
sales of dealers reporting the item was 51% for August as against
:16%
in July and 51% last year.
MIDWEST DISTRIBUTION OF AUTOMOBILES.
Changes in August 1932 from previous months.
Per Cent Change From
New cars:
WholesaleNumber sold
Value
RetailNumber sold
Value
On hand Aug. 31Number
Value
Used cars:
Number sold
Salable on handNumber
Value
July 1932.
Aug. 1931.
Companies
Included.
+10.4
+5.3
-53.2
-60.8
1,1
15
-1.5
+5.2
-38.6
-34.7
40
40
-10.8
-50.7
-58.5
40
40
-14.2
-1.9
-13.5
-21.1
-7.1
40
-2(3.4
-37.3
90
40
Regarding orders booked by furniture manufacturers, the
Bank reported as follows:
Orders booked by Seventh District furniture manufacturers reporting to
this bank continued to expand during August. Total bookings for the
month exceeded the July aggregate by 10%, whereas, during the past few
years--the year 3931 excepted-the period has been marked by a falling
Volume 135
Financial Chronicle
off in new orders of from 15 to 25%. Shipments, following upon the July
expansion in orders booked, gained 36% over a month previous, which
compares with an average increase of 33% over the five-year period,
1927-1931. The ratio of unfilled orders to current orders was little changed
during the month, the total outstanding on Aug. 31 amounting to 99% of
orders booked. The rate of operations approached 32% of capacity, a
gain of six points over July; that of August last year was 49%. In comparison with year-ago totals, orders booked were 52% less, shipments 49%
smaller and unfilled orders 53% lower.
City Council of Seattle Will Adopt Lower Wages Scale
—Finance Committee Ordered to Report Ordinance Fixing New City and Contract Minimum 20%
Slash Planned With Lowest Figure at $4.50 Meeting
Private Industry.
Adopting a schedule recommended by the Board of Public
Works, the Seattle, Wash., City Council Finance Committee
on Sept. 16 ordered drawn an ordinance fixing a new minimum wage scale for labor, both skilled and common, on city
work. It reduces present rates about 20%, according to the
Seattle "Post-Intelligencer" of Sept. 17, which also said:
The new schedule, with a few exceptions, embodies rates agreed upon
March 1 1932 by the Building Trades Council and the Associated General
Contractors for private industry.
Laborers employed by the city in its own work and by contractors
handling city contracts are affected.
Private Work Followed.
Because the city has failed to put the reduced pay schedule into effect
earlier, Seattle taxpayers have paid thousands of dollars in excess costs on
local improvement projects; Edwin C. Ewing, attorney, charged before the
Council, Thursday, during the hearing on the Railroad Avenue improvement.
"For a year the pay schedule in private industry has been 20 and 30%
below the city's scale," Ewing aserted. "For example, the city has been
paying common labor $5.60 a day while private industry paid $4.50.
"In the new schedule all rates are figured on an eight-hour day basis
and would be reduced pro rata for shorter working hours," the Public Works
Board declared in a communication to the Council.
Minimom $4.50.
"In certain cases we have not applied the full 20% reduction. For
instance, common labor, which such a reduction would bring down to $3.60
per day, has been placed at $4.50, and building laborers and other slightly
skilled laborers have been held to a minimum of $4.75 a day."
Following are some of the pay rates fixed in the new schedule:
Auto repairmen, $128 per month; auto truck drivers, $128; blacksmiths,
$140; gas shovel operators, $200, or $9.60 per day; teamsters, $92; oilers,
$128; machinists, $152.
Bricklayers, $9.60 a day; carpenters, $7.20; cement finishers, $7.20;
linemen, 7.20; painters, 7.20; pipemen, $5; plasterers, $9.60; plumbers,
$8.80 ; steam fitters, $8.80.
2237
lost if production is needlessly started unt,1 more evidence
of substantial and continuing increase in actual lumber
consumption is at hand." The statement of the Association
further adds:
Source of Orders.
It is indicated by reports to the National Lumber Manufacturers Association that there has been more recent buying by the retailers than any
other class of trade, somewhat earlier activity in the South than in other
sections, although the West is now showing appreciable upturn, and
probably more demand in rural and small town sections than in urban
centers. Some city yards, however, report considerable selling for repair
and remodelling. Some of the increase is obviously seasonal. Fall repair
work and remodelling is to be expected, but not since 1929 has there been
so substantial an increase in orders at the mills as during the past four
weeks.
Just how much of the retail trade is due to actual orders from consumers
or definite prospect of increasing demand and how much to the effort
to replenish low yard stocks while prices are at bottom levels, is problematical. In the South the increased activity on the part of retailers is said
to be predicated upon anticipated building, due to the higher prices of
cotton and some farm products.
Considerable lumber is in demand for industrial building, particularly
for textile plants in the South. Small house construction is reported
to be the chief source of demand in the Central West. Resumption of
Public works construction is inspiring some lumber orders. including form
lumber. There is no quantity buying by the railroads but lumber stocks
in the hands of the roads are so depleted that "Railway Purchases and
Stores" in its September issue gives warning that "when any sizable car
building or repair programs get under way, the roads may find themselves
competing strongly with each other for the small stock of car lumber
that may be available."
Sash and Door Demand.
True to the seasonal trend, sash and door factories in certain districts
have been more active in the past two or three weeks than for many months.
Shingle manufacturers are feeling a heavier demand and are getting somewhat higher prices than a month ago. The market for oak and maple
flooring is improving.
Some of the larger hardwood consumers, as furniture and automobile
plants, are anticipating their future requirements, many stimulating the
market with active inquiries if not by substantial purchases.
The lumber export trade, which has been running about 50% below last
Year for softwoods and 25% below for hardwoods during the summer,
has not as yet shown much change in the South. Some increase in new
business going to the Douglas fir mills in the first two weeks of September
was in export trade, a revival in Japanese busing being reported.
Lumber Orders Held Up During Week Ended Sept. 24—
[Production Increased Slightly.
Although orders received at the lumber mills during the
week ended Sept. 24 were not so large as for the previous
week, they were well above the average of the year to
date and within 3% of the new business of the corresponding
Lumber Industry Believed to Be Emerging from the week of 1931, according to telegraphic reports to the
Depths of the Trough—Inventories Still Excessive.
National Lumber Manufacturers Association from regional
During the past four weeks, lumber orders at the sawmills associations covering the operations of leading softwood
have increased appreciably over the record of previous weeks and hardwood mills.
of 1932, as reported by 650 leading mills of the country to
General industry reports indicate more activity in the
the National Lumber Manufacturers Association. The week past three or four weeks, either in the form of orders or
ended Sept. 3 1932, orders were reported of 187,536,000 feet; inquiries from lumber consumers, both for factory use
the following week, even though including the Labor Day and construction, than in many months. The volume of
holiday, of 170,103,000 feet; the week ended Sept. 17, of orders, however, though encouraging, in view of the indus188,921,000 feet, these being the highest weeks of 1932 to try's large aggregate stocks, is not sufficient to warrant an
date and comparing with 139,275,000 feet, the average of increase in production. Stocks at the mills, though dethe first 37 weeks of the year.
clining, are still excessive.
Lumber orders at the mills for the four weeks were 92%
Orders received last week by the 644 mills reporting to
of last year with the following weekly relationships-79%; the National Association were 176,754,000 feet, or 53%
91%, 100%, 100%. September 1931 began the major above production. Production was 115,384,000 feet, or
downward movement of last year but comparisons with 1930 36% below the corresponding week of 1931, compared with
show an encouraging trend. Orders received in 1932 in the 40% below the previous week.
four weeks ended Sept. 17 were 28% below those of corresThe percentage relationship of orders above production
ponding weeks of 1930, against similar comparison with 1930 for the week ended Sept. 24 compares with 68% above,
in May of 56% below, and in June 49% below.
for the previous week, and 26% above for the year to date.
Lumber production in the four weeks ended Sept. 17 1932
Production was 23% and new business 35% of capacity,
averaged 110,526,000 feet, compared with weekly average compared with 22% and 38% the previous week.
of 111,595,000 feet for the year to date. This was 22%
Lumber orders reported for the week ended Sept. 24 1932
of the capacity of the reporting mills. Similar percentage by 473 softwood mills totaled 162,261,000 feet, or 49%
during corresponding four weeks in 1931 was 35%; in 1930, above the production of the same mills. Shipments as
49%. Lumber orders in the same four weeks' comparisons reported for the same week were 145,069,000 feet, or 33%
were 35% of capacity in 1932; 38% in 1931; 48% in 1930. above production. Production was 109,184,000 feet.
"In the light of these reports," says Wilson Compton,
Reports from 187 hardwood mills give new business as
Secretary and Manager of the National Lumber Manu- 14,493,000 feet, or 134% above production. Shipments
facturers Association, "there is ground for the encouraging as reported for the same week were 14,218,000 feet, or
belief that the lumber industry is emerging from the depths 129% above production. Production was 6,200,000 feet.
of the trough but thera is no justification for any present
Unfilled Orders.
increase in production. The industry's stocks are still
Reports from 413 softwood mills give unfilled orders of 443,941.000
excessive and the further reduction of stocks continues the feet
on Sept. 24 1932, or the equivalent of 11 days' production. The
industry's most important problem. The price increases 38.5 identical softwood mills report unfilled orders as 436.713,000 feet on
Sept.
24 1932, or the equivalent of 1134 days' average production, as
which are heralding an upturn are Si yet slight compared compared
with 462,545,000
or the equivalent of 12 days' average
they
what
with
must be tc equal even the cost of production. production, on similar date afeet,
year ago.
Last week's production of 435 identical softwood mills was 104.410,000
The progress so far made is primarily the relult of better
and a year ago it was 158,605,000 feet; shipments were respectively
balance between production and consumption encouraged feet,
138,781,000 feet, and 176.510.000, and orders received 155,147.000 feet
and guided throughout the industry by the recommendations and 157,038,000. In the case of hardwoods, 175 identical mills reported
made public by the United States Timber Conservation production last week and a year ago, 5.272.000 feet, and 12,444.000:
12,882,000 feet and 16,128,000; and orders 13.540,000 feet
Board; and the principal advantages so far gained will be shipments,
and 16,103,000 feet.
Financial Chronicle
2238
West Coast fovement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 217 mills reporting
for the week ended Sept. 24:
SHIPMENTS.
UNSHIPPED ORDERS.
NEW BUSINESS.
Feet.
Feet.
Feet.
Coastwise and
Domestic cargo
Domestic cargo
delivery -___ 35,335,000 delivery_ ___128.866,000 interconstal _ 21,713,000
16,066,000
73,427,000 Export
14,154,000 Foreign
Export
23,523,000
49,644,000 Rail
Rail
22,712,000 Rail
6,180,000
Local
Local
6.180,000
67,482,000
Total
Production for the week was 57,226,000 feet. Production was 23%
and new business 32% of capacity, compared with 21% and 35% for the
previous week.
Southern Pine.
The Southern Pine Association reported from New Orleans that for
123 mills reporting, shipments were 59% above production, and orders
64% above production and 3% above shipments. New business taken
during the week amounted to 34,938,000 feet (previous week, 36,681,000
at 114 mills); shipments, 33,911,000 feet (previous week, 35,315,000);
and production, 21,364,000 feet (previous week, 22,579,000). Production
was 31% and orders 51% of capacity, compared with 35% and 57% for
the previous week. Orders on hand at the end of the week at 113 mills
were 76,528,000 feet. The 113 identical mills reported a decrease in production of 22%, and in new business an increase of 16%. as compared with
the same week a year ago.
Vestem Pine.
The Western Pine Association reported from Portland, Ore., that for
110 mills reporting, shipments were 37% above production and orders
53% above production and 12% above shipments. New business taken
during the week amounted to 44,869,000 feet (previous week, 49,669,000
at 117 mills); shipments, 40,185,000 feet (previous week, 39,115,000);
and production, 29,364,000 feet (previous week, 31,289,000). Production
was 22% and orders 34% of capacity, compared with 22% and 35% for
the previous week. Orders on hand at the end of the week at 110 mills
were 137,902,000 feet. The 99 identical mills reported a decrease in production of 35%, and in new business an increase of 6%, as compared with
the same week a year ago.
Northern Pine.
The Northern Pine Manufacturers Association of Minneapolis, Minn.,
reported production from 7 mills as 804,000 feet, shipments, 2,646.000
feet and new business, 3,016,000 feet. The same number of mills reported
production 2% less and new business 6% less than for the same week last
year.
Northern Hemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh. Wis., reported production from 16 mills as 426,000 feet, shipments 845,000 and orders 1,057,000 feet. Orders were 13% of capacity
compared with 8% the previous week The 15 identical mills reported a
decrease of 66% in production and an increase of 14% in new business,
compared with the corresponding week a year ago.
Total
78,381,000
Total
251,937,000
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
production from 171 mills as 6,200,000 feet, shipments 13,160,000, and
new business 13,526,000 feet. Production was 17% and orders 37% of
capacity, compared with 20% and 43% for the previous week. The 160
identical mills reported production 57% less and new business 16% less
than for the same week last year.
Mahe Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported no production from 16 mills, shipments 1,058,000
feet and orders 967,000 feet. Orders were 17% of capacity as compared
with 19% for the previous week. The 15 identical mills reported a decrease
of 15% in orders, compared with the same week last year.
Increase in Price of Rough Paper—Unit of International Paper Co. Adds $2.50 a Ton on Kraft
Liner Board.
An immediate minimum advance of $2.50 a ton in the price
of kraft liner board, the first increase in 18 months, was
announced on Sept. 23 by the Southern Kraft Corp., a
division of the International Paper Co. This is learned from
the New York "Times" of Sept. 24, which also stated:
It comes closely upon the reduction of $7 a ton in the price of newsprint
announced by International Paper, under-cutting by $1.50 the quotation
of Price Brothers & Co., Ltd., Canadian newsprint manufacturers, made
on Sept. 14. No further price readjustments on newsprint were announced
yesterday.
"On account of the recent competitive situation in some markets the
advance (on kraft liner board) will be more pronounced in those territories," International Paper said. "Southern kraft liner board manufacturers are running 100% capacity, due to the increasing demand for
their product. Because of minimum stocks in the hands of container manufacturers it is expected that the advance will be reflected promptly in shipping container prices."
Heavy Grain Receipts at Head of Great Lakes.
Canadian Press advices from Fort William, Ont., Sept. 24,
stated:
Receipts of all grains at the head of the Great Lakes this week exceeded
18,000,000 bushels, with shipments of just over 9,000,000 bushels. Stocks
in store now are 57,902,516 bushels compared with 53,939,175 bushels a
year ago and 72,871,058 bushels in 1930. Stocks of wheat in the Western
Inspection Division rose to 121,871,386 bushels compared with 99,721,437
bushels a year ago and 110,063,179 bushels two years ago.
Grain Via Churchill—Hudson Bay Route Shippers
Enjoy Three Cents a Bushel Advantage Over
Lakes.
From Regina, Sask., the "Wall Street Journal" of Sept. 26
reported the following:
With Canadian Great Lakes grain rates at 6c. a bushel, thereby giving
Churchill a 3c. a bushel advantage, Western Canadian freight rate experts
hardly hope for any further assistance for shipments over the Hudson Bay
route.
Oct. 1 1932
Two million bushels of wheat were shipped on eight vessels in the six
to eight weeks' season at Canada's new northern seapoart. While Great
Lakes rates were as low as 4c. a bushel, Churchill enjoyed a 1.05c. advantage.
During the season just closed the Government gave free of any charge
the use of elevator services at Churchill. Even if these charges were laid
against wheat shipped, there would still be an advantage with Lake rates
at the 6c. level.
Record Wheat Crop in Italy—Mussolini Announcee
Output of 276,000,000 Bushels for Year Despite
Bad Weather—Double Pre-War Average.
At the opening meeting of the permanent wheat committee, in Forli, Italy, on Sept. 24, Premier Mussolini announced
that this year's wheat crop was the largest in Italian history,
amounting to 276,000,000 bushels. We quote from a wireless
message from Forli to the New York "Times," which further
reported:
The previous maximum, obtained in 1929, was 260,000,000 bushels. This
year's crop is more than 50% greater than the average crop in the last six
years before the World War, which was only 180,000,000 bushels.
This result, Premier Mussolini pointed out, had been obtained although
meteorological conditions in the latter half of the season were unfavorable,
considerably reducing previous estimates of the total crop.
The huge increase in Italian wheat production, the Premier declared, had
been achieved by the application of modem farming methods and not by
increasing the acreage under cultivation. Before the war the average yield
per acre was 15.5 bushels, while this year it jumped to 22.6.
The highest yield per unit area this year obtained was by Emilia, with
almost 40 bushels per acre, followed by Lombardy with more than 37.
The lowest was obtained by Sardinia, with 16.5 bushels.
Giacomo Acerbo, the Minister of Agriculture, told the meeting that the
present year had been particularly favorable for all branches of agriculture. Although excellent crops were in some cases nullified by the low
prices for agricultural products, he declared, at least there would be plenty
throughout the land. A particularly hopeful sign, he said, was that the
unusually large wheat crop had been accompanied by an increase in wheat
prices in the home market.
Despite the restrictions on agricultural imports applied by several countries, concluded Signor Acerbo, Italian agricultural exports had maintained
their position satisfactorily.
Cuba Reduces New Sales Tax on Flour Shipped from
United States.
Under date of Sept. 22 the New York "Times" reported
the following from Havana:
The one-half cent a pound sales tax recently imposed by the Cuban
Government on all wheat flour will be reduced 30% in the case of flour
shipments from the United States, according to a Presidential decree.
This ruling was issued following protest by the American Embassy here
against the half-cent tax on the ground that it infringed Article IV of
the Reciprocity Treaty between the United States and Cuba. The tax is
collected in the custom house at the time of payment of customs duties.
Another decree exempts from the payment of customs duties all flours
or meals made from oleaginous residues when they are products of the soil
or industry of the United States.
French Imports Reduced—But Quotas Failt to Obtain
Favorable Balance in Eight Months of 1932.
A wireless message from Paris, Sept. 26, to the New York
"Times" stated:
Although the value of foreign goods imported by France during the first
eight months of this year exceeded the value of the country's exports by
6,975,200,000 francs (about $279,000,000), the quota system reduced the
value of imports more than 10,000,000,000 francs from the total for the
same period in 1931.
Figures made public to-day by the French customs administration also
showed that exports during the first eight months of this year were more
than 80,000,000,000 francs under what they were in the same period in 1931.
Summarizing the differences in import and export totals for the first
eight months of 1932 and the same period in 1931, the customs officials
/
2%, while exports fell 38%.
calculated that imports diminished 331
The whole program is severely criticized in the liberal press.
Milk Distributors in New York Act to Avert Strike—
Basic Price in Metropolitan Area Agreed On to
Assure Producers Better Prices—Dairymen Reported as Protesting New Price Cutting.
According to the New York "Times" of Sept. 25,agreement
among wholesale dealers in the move to stabilize the milk
market and assure producers better returns brought comparative peace to the situation in New York the previous
day; although one dealer issued a tirade against the Dairymen's League Co-operative Association and reports from upState told of continued rebellion among the dairy farmers.
From the same account we take the following:
George N. Allen, Secretary of the emergency committee of the New
York milk shed, which has temporary headquarters here in the hotel
Algonquin, was in communication with Rowland Sharpe, chairman of the
committee, at Utica. asking Mr. Sharpe to report to the farmers that
dealers here were co-operating in the effort to stabilize prices.
Mr. Allen urged that the dealers receive an opportunity to show their
good faith and that the farmers refrain from drastic measures. The
dealers here had previously assured Mr. Allen of their willingness to make
specified price increases for the farmers, following a meeting with John
Hackett, New York representative of the United Milk Products Corp.,
which supplies those dealers.
"The metropolitan basic milk price has been assured and for the time
being the price structure of the New York milk shed has been saved, but
nevertheless the strike threat of producers in Jefferson and Oneida counties
will be held over dealers' heads until Tuesday noon to assure continuance
Financial Chronicle
Volume 135
of the agreement," Mr. Sharpe said in Utica yesterday, according to The
Associated Press.
New Ultimaium Issued.
Milk producers, at a mass meeting in Boonville Friday night, followed
the example of dairy farmers of Adams Centre by sending a telegram
yesterday to the United Milk Products Corp. similar to that sent by the
Adams Centre farmers in which they threatened to strike against the
distributing agency unless prices were adjusted.
John D. Clarke, a Director of the Dairymen's League, urged milk producers In Binghamton yesterday, the Associated Press reported, to continue their attempt to stabilize prices by co-operative action. He made
the plea in declining to lead a milk strike in Delaware County when visited
by a committee of independent farmers.
The committee, it was said reported to Mr. Clarke a further cut to the
retail trade in the metropolitan area of lc. a quart for grades A and B milk
by Ferndale Dairies, purchasers of milk in Delaware County.
The headquarters of the emergency committee in the Hotel Algonquin
will remain open next week, and more dairy farmers are expected here to
investigate prices and determine whether the dealers are paying the minimum of $2.36 for 40-quart cans of milk.
One delegation of farmers, before leaving here yesterday, reported that
milk prices were rising. In stores where a previous investigating committee of farmers had bought milk for 4 and Sc. a quart, they paid 7 and 9c.
a quart, they said.
"It would appear at the present time at least, because of the low-production period, that dealers will do their best to maintain prices this Fall
and winter," Mr. Hackett said yesterday. "They are showing a determination to maintain price levels that assure farmers fair returns on their
investments."
Mr. Hackett said that his organization, the United Milk Products
Corp., had always maintained the prices paid by the Sheffield Producers
Association to farmers, and "sometimes a few cents more." His agency
supplies five dealers in the city, shipping in about 44,000 quarts daily.
Eisenberg Answers Charges,
Alexander Eisenberg, President of Eisenberg Farms, which gets about
500 40-quart cans of milk daily from the United Milk Products Corp..
issued a long statement yesterday in reply to the charges made by Adams
Centre farmers that his firm was the "chief offender" here against them.
Mr. Eisenberg declared that the public and the farmers had been misinformed "as to the true facts" of the situation in Brooklyn,
"It is plain that the committee of farmers which is concentrating its
efforts in order to shut off the supply of our milk, is merely acting as tools
and agents of the Dairymen's League Co-operative Association, which
company, only a few months ago, unsuccessfully made all efforts to force
our company out of business," Mr. Eisenberg's statement read.
"Before the committee of farmers which is now here to investigate the
milk situation, accuses our firm of being price-cutters in the milk business
in Brooklyn, and before it induces our shippers and milk producers to discontinue shipping our milk supply, it is its duty and to its advantage to
Investigate the price-cutting activities in New York City or its own Dairymen's League Co-operative Association, which, during June and July, 1932,
was engaged in a price-cutting war with this firm in its effort to put this
company out of business.
"The Dairymen's League, through the Saks Dairy Company, its branch
in Brooklyn, during June and July, 1932, not only sold loose milk to retail
stores from 2 to 3 cents per quart, and bottled milk at 5 cents per quart,
but in a number of instances gave away free cases of bottle milk and also
loose milk for the purpose of obtaining the trade of our firm in those particular stores and thereby leaving us without an outlet for our milk."
Mr. Eisenberg said in August his firm paid farmers $1.30 for 100 Pounds
of milk, "where the Dairymen's League only paid to its farmers 99 cents
cash for the same milk at the same time." His statement continued in
criticism of the league, and concluded with the threat that if the supply
was cut off he would seek to have the Health Department extend the
milk
shed and obtain his supply elsewhere.
Mr. Allen, commenting on Mr. Eisenberg's statement, explained that
the emergency committee was formed last March at a mass meeting in
Syracuse by farmer conunittees chosen from milk-producing counties
throughout the New York milk shed.
The "Times" of Sept. 26, reported:
Dairymen at Adams Centre and Pierrepont Manor, N. Y., who had
threatened a milk strike, went ahead with shipments of milk to the metropolitan market yesterday when assured that the United Milk Products
Company would do everything possible to induce its distributors to maintain prices, according to The Associated Press.
In its issue of Sept. 28, the "Times" said:
While State Attorney General John J. Bennett Jr., was requesting Eisenberg Parma, Inc., Brooklyn milk dealers, to amplify their charges that the
Dairymen's League Co-operative Association was endeavoring to eliminate
competition by wholesale price-fixing, Commissioner of Health Wynne
announced yesterday that he had been assured by the emergency committee
of the New York milk-shed that there would be no milk strike.
OW the same time, however. G. N. Allen, secretary of the emergency
committee, issued a statement asserting that the wholesale milk
market
was softening again under the spread of price-cutting, and that there
was
danger of the collapse of the market. He warned that the 100,000
dairymen in the country were aroused and were "not likely to accept ruin
calmly
so that a few dealers can carry on a price war."
Wynne Warns Leaders Here,
Dr. Wynne explained that he had invited Mr. Allen to a conference
to
discuss the possibility of a milk strike by the dissatisfied dairymen.
"Mr. Allen and his associates assured me that they had no thought
of a strike because they were aware of the far-reaching effect it would
have on the health of the city," Dr. Wynne said. "They also were aware
of the effect it would have on their market, for I told them that in the
event of a milk strike I would most certainly be compelled to extend the
New York milk-shed.
"They said their only thought was to check up selling conditions here
and to prevent price-cutting, which is demoralizing the market. Furthermore, the amount of milk involved is so small that they admitted it would
not be a deciding factor in the controversy."
The following from Utica, N. Y., Sept. 28, is from the
New York "Journal of Commerce":
With word from New York that the Eisenberg interests have agreed to
go-along on the price of milk with other dairy dealers. Rowland M. Sharpe,
Chairman of the State Emergency Milk Committee, prepared to leave
Utica to-night, expressing satisfaction over the result of the parley in New
York City. He has been in Utica for five days directing the activity of
the move in up-State New York.
The Eisenberg agreement to go along on higher price and stop slashing
2239
came at a conference attended by United Products Co. officials, who supply
Eisenberg; Otis Evans of Boonville, Chairman of the Dairymen's Vigilence
Committee in his area, and George Allen, Secretary of the State Emergency Milk Committee.
"I believe the Emergency Milk Committee has scored a master stroke
through these negotiations," Mr. Sharpe said. "It has called to the attention of the producers the difficulties in the Metropolitan market and
aided the dairyman in ironing out his trouble through pointing the way
to peaceable corrective methods, avoiding futility of a strike."
It was the Emergency Committee's contention that price cutting on
the past of Eisenberg interests was undermining the Metropolitan market.
Up-State dairymen planned to stop the movement of their milk from
Up-State plants if it continued.
• In its issue of Sept. 30, the "Times" had the following to
say:
Although a virtual settlement had been reached in negotiations to stabilize
the wholesale milk market and prevent a threatened strike of dairy farmers,
the activities of a recalcitrant group of dealers led the emergency committee
of the New York milk shed yesterday to view the movement as doomed
to failure unless persistent price-cutting ceased.
George N. Allen, Secretary of the committee, with headquarters in the
Hotel Algonquin, predicted that the whole structure of the New York
City milk market "will collapse within five days unless dairy farmers exert
pressure upon refractory dealers to abandon their destructive price-cutting
practices."
In a statement issued after a series of conferences with several metropolitan milk dealers who reported that the stabilization movement was
doomed to failure unless dealers who had attempted to increase
Prices
were relieved of the "unfair competition of price cutters," Mr. Allen said:
"Dealers who have been interviewed to-day declare that the price-cutting
campaign is still being carried on by a comparatively small group. Those
who raised their prices Sept. 20 in an effort to stabilize the wholesale market
have served warning that they cannot hold to that course more than a few
days unless price-cutting is halted. The dealers who continue breaking
Prices are raiding the business of the dealers in the constructive group.
The latter cannot continue to lose their trade, and have warned that if
they are forced to meet the competition there will be a 'dog-eat-dog' fight.
Such a price-cutting battle would be disastrous to the whole dairy industrY,
would add to farmers' losses, and probably bring ruin to some dealers
before it ended.
"A group of farmers headed by Rowland M. Sharpe, chairman of the
emergency committee, is to-day checking the charges made by dealers
to us. Documentary and other evidence is being gathered against those
who are price-cutting. This will be dispatched to producers who are
supplying them, and the farmers will be given all of the facts to make
their own decision as to what action they shall take to meet this situation.
I am fearful that their action will be unpleasant. They accepted the
promises of dealers to correct conditions in this market. The promise
has not been kept. Farmers are angry. This committee does not approve
of any shutting off of supplies, but the farmers are likely to take matters
into their own hands, for they are losing faith in the power of negotiation."
The "comparatively small group" continuing the price-cutting activities.
Mr. Allen said, included three dealers in Brooklyn, one in Manhattan
and one in the Bronx. Four up-State dairy farmers remained here yesterday to continue the investigation into milk prices.
Following the action of other distributers, Sheffield Farms,it was learned
yesterday from an official of the company, will restore the 3c. deposit on
Its milk bottles in the store trade in parts of Manhattan and the Bronx
starting to-day. The system gradually will be extended throughout the
two boroughs.
An item regarding the milk "Strike" appeared in our issue
of Sept. 24, page 2062.
Dairies Entitled to Fix Prices, New York State Attorney
• General Rules.
The following from Albany, N. Y., Sept. 27, is from the
New York "Herald Tribune":
Farmers, gardeners and dairymen, organized into co-operative associations, may fix prices by agreement without violating State law, AttorneyGeneral John J. Bennett Jr. ruled to-day in a letter sent to Eisenberg
Farms, Inc., of Brooklyn.
Replying to a complaint calling for investigation of an alleged price-fixing
agreement among dairymen in up-State areas and an alleged threat to
discontinue the milk supply under contract with them unless prices estab1:sed by them were charged, the Attorney-General said it was impossible
to conclude from the facts stated whether an investigation was warranted.
Mr. Bennett called attention to the exemption provided in Article 22,
Section 340, of the general business law, "the constitutionality of which
exemption of dairymen's associations for price regulation in a large market
district has been sustained by the courts."
"You will note," he wrote, "that the last paragraph specifically exempts
co-operative associations, corporate or otherwise,of dairymen,and contracts
and agreements made by them, whereby competition or price fixing of a
commodity may be prevented or restrained."
Milk Producers in Philadelphia Area to Continue
Present Prices.
Under date of Sept. 24, Associated Press adyices from
Philadelphia, said:
Milk producers in Eastern Philadelphia. Southern New Jersey,the eastern
shore of Maryland and Delaware, and milk dealers in the Philadelphia
territory agreed to-day to continue present milk prices during October.
Dr. Clyde L. King, State Secretary of Revenue, who acted as arbitrator.
said he would complete a study of the milk market by Nov. 1, and at
that time a scale for the ensuing year would be announced.
Move to Safeguard Washington, D. C., from Effects of
Milk Price War.
The following is from the New York "Times" of Sept. 28:
In an effort to safeguard the Washington, D. C., market from the effects
of a milk price war, the Maryland and Virginia Milk Producers' Association is moving to curtail the Washington supply and already has induced
68 producers in Montgomery County. Md., to cut shipments 5%. The
wholesale price in Washington is 27 cents a gallon for a 4% butter-fat grade.
2240
Financial Chronicle
Other producers In the Washington area are to meet this week to act on
the request to curtail shipments 5%.
Milk "Strike" in Georgia Ended—New Price Scale
Agreed On.
Atlanta's six-day milk "holiday" ended on Sept. 28, when
distributors and producers agreed to a new price scale,
according to a despatch on that date from Atlanta, to the
New York "Times" from which we also quote:
The agreement was reached at a conference called by Mayor James L.Key.
The producers are to receive 16 cents a gallon for milk beginning Oct. 1;
18 cents beginning Nov. 1, and 20 cents beginning Dec. 1. Regulation of
prices in the future is to be in the hands of a commission ofseven members.
The producers had been receiving 14 cents a gallon, which yielded a
profit of only 3 to 6 cents, and they demanded an increase of 6.4 cents a
gallon when they went on strike a week ago.
Under date of Sept. 27, the same paper reported the following from Atlanta:
Governor Richard B. Russell Jr. conferred to-day with H. H. Hardin,
Vice-President of the Georgia Milk Producers Confederation, and it was
understood that possible negotiations for an agreement in Atlanta's milk
"holiday" were discussed.
The Governor summoned Mr. Hardin when it was apparent that the
Confederation would continue its fight for higher milk prices despite
Injunctions against picketing on the highways leading into Atlanta.
Governor Russell declined to discuss the conference and gave no indication of what action he might take.
Mayor James L. Key also took a hand in the controversy when he
suggested that representatives of the opposing groups meet with him tomorrow in an effort to settle their differences. Officials of the Confederation accepted the invitation, but the distributers would not reveal their
prospective attitude.
Meanwhile, the "strikers" continued to blockade highways to prevent
milk from reaching the Atlanta market. P. A. Edwards, an Atlanta
truck driver, whose machine carried no milk, reported that he was beaten
by a group of men near Barnesville, Ga., because "he didn't stop quick
enough."
On the previous day (Sept. 26), Associated Press accounts
from Atlanta, stated:
Angry farmers barricaded a highway near Conyers, Ga., with railroad
ties and dumped several truck loads of milk in the road to-day despite a
Federal injunction against violence in a dairymen's strike for higher prices
from Atlanta distributing plants.
Another truck was halted near Forsyth. Ga., far removed from the
Conyers community, and 100 gallons was dumped.
Meanwhile. the Pedigree Dairies, distributing company of Atlanta,
asked Federal Judge Bascom Deaver of Macon to issue citations for contempt of court against farmers for violating a temporary injunction against
interference with the movement of milk shipments to Atlanta.
Judge Deaver issued the injunction Saturday night on a petition of the
distributers and named the Georgia Milk Producers Confederation, Inc.,
defendant.
The Pedigree company also obtained another temporary restraining order
in Fulton County Superior Court to-day. It restrains agents of the State
Department of Agriculture from enforcing a rule to prohibit the sale of
milk more than 24 hours old in Atlanta.
This action was interpreted as paving the way for distributing plants
to bring milk here from other states.
We also quote the following (Associated Press) from
Atlanta, Sept. 24:
Municipal laboratory officials said to-day 900 gallons of milk consigned
to an Atlanta dairy from Virginia shippers has been refused entrance to
the city and was escorted to the Fulton County line.
Inspectors said the milk did not measure up to sanitary requirements
of the city.
The laboratory described it as the only shipment that reached Atlanta
before special inspectors sent to Virginia by the city and State departments
arrived there to begin their work.
Ken Caldwell, chief food and milk inspector of Atlanta. is in Richmond
checking such shipments where they originate, it was said.
The laboratory pointed out that 65% of the milk used here is supplied
by Atlanta dairies not affected by a dairymen's milk "holiday" and as
these dairies normally produce a surplus, there is little fear of a milk shortage
in the city.
Meanwhile, a conference was called to-day in an effort to end the embargo on milk shipments into Atlanta by a group of producers in 20 Georgia
counties.
An item bearing on the strike appeared in these columns
Sept. 24, page 2062.
Investigation Into Milk Distributing Costs in St. Paul
and Minneapolis Ordered by Governor Olson.
Associated Press advices from St. Paul, Minn., stated
that Governor Olson ordered an investigation on Sept. 26 of
milk distributing costs in the Twin Cities area. The
farmers, it was said, claimed the producer received 2 cents
a quart and the distributor 8 cents.
Milk Price Controversy in Omaha Taken Into Court.
On Sept. 26, Associated Press advices from Omaha,stated:
The David Cole Creamery Co., moving the local milk price controversy
into Federal Court, obtained a court order to-day temporarily restraining
members of the Nebraska-Iowa Co-operative Milk Association, and others,
from interfering with the company's business.
Federal Judge J. W. Woodrough issued the restraining order after 400
farmers had paraded the city in the interest of co-operative marketing
and had staged a demonstration against the David Cole and one other
creamery company.
The milk "strike" in Omaha, was referred to in our issue
of Sept. 24, page 2062.
Oct. 1
1932
President Machado of Cuba Extends Life of Sugar Pool
—Signs Decree Keeping Plan in Effect Until
June 30 1933.
The following wirelsss message fro.n Havana Sept. 26, is
from the New York "Times":
Following the recommendation of the Sugar Institute, official body con •
trolling the Cuban sugar industry, President Machado signed to-day a
decree extending the period of the 700,000-ton sugar pool to June 30 1933.
This sugar will be released for sale prior to that date only if the average
market price is at 1.4 cents for five consecutive days. If this price is not
reached before the period expires a sixth of the pooled sugar will be released
each month for six consecutive months.
The pool was originally formed by Presidential decree last July 2 for six
months in an effort to raise sugar prices.
On the same date a cablegram from H wana to the New
York "Journal of Commerce" said:
At a general meeting of sugar planters and colones of Oriente Province
held in Santiago yesterday it was resolved to request establishment of a
"single seller" as the only medium the colones have of receiving full benefits
from the drastic restriction to 2,000,000 tons in the 1933 crop.
It was also resolved to arrange a mass meeting of all colones in Cuba in
order to ratify this request. It is impossible to foretell what action the
Government will take on this matter. It might be the start of a nationwide move.
The "Journal of Commerce" in its Sept. 27 issue also said:
Extension of the release date in the 700,000 tons of segregated sugar In
Cuba, a matter which has been a market factor for several months now,was
officially sanctioned by President Machado yesterday. This sugar will not
be available for sale until June 30 1933, an extension of six months. The
plan was effected in an effort to equalize supply and demand in the United
States market this year and next.
Terms of Decree.
A copy of the decree, received by Lamborn & Co. yesterday, follows:
First.—To extend to June 30 1933, the effects of Presidential decree No.
902 of July 2 1932, thereby prohibiting up to that date the exportation of the
700,000 tons of sugar referred to by said decree, unless the average price,
cost and freight, New York of the sales of Cuban prompt delivery sugars,
actually effected, should reach during five consecutive market days, the
price of 1.50 cents per pound and that this price is published by the Cuban
Sugar Stabilization Institute. Once said average price of 1.50 cents has been
reached and published, as provided, the holders of segregated sugars may
dispose freely of same.
Second.—If on July 1 1933, the condition stipulated in the preceding
article should not have occurred in order that the holders of sugars may
dispose freely of same, the sugars subject to retention will be released in
proportions of one-sixth part per month during the months comprised from
July 1 to Dec. 311933.
National Export Rulings.
Third.—National Sugar Export Corp. shall establish the necessary
rulings for the fixing of the individual exportation proportions of segregated
sugars that will correspond to each holder of sugars out of the total amount
that will be released monthly beginning July 11933, pursuant to the stipulations of the foregoing article.
Fourth.—Holders of sugar subject to segregation may substitute said
sugars for sugars to be produced in the 1933 crop,subject to the rulings and
regulations to be issued by the National Sugar Export Corp. to that effect.
Fifth.—National Sugar Export Corp. is also authorized to issue or
exchange United States of America identity certificates, at present outstanding,for others covering sugars that are subject to segregation,and those
that may be exported freely, as well as to issue or substitute said certificates
upon exchanging segregated sugars of the 1933 crop.
Sixth.—The provisions contained in decree No. 902 of July 2 1932, will
b applied subsidiarily in all events not provided in this decree.
•
Cuban Sugar Exports This Year Exceed Last Year.
Havana advices Sept. 28 to the New York "Evening
Post" stated:
Cuban sugar exported from Jan. 1 to Sept. 17, aggregated 2,049,222 long
tons, of which 1,327,006 went to the United States and 722,216 to other
countries. This compares with 2,027,432 tons exported in the corresponding
period of 1931, of which 1,563,317 went to the United States, and 464,115
to other countries.
Record Philippine Sugar Crop.
In its issue of Sept. 21 th9 "Wall Street Journal" of Sept. 24
said:
Philippine Islands in the crop year just ended had a record production of
984,024 long tons of centrifugal sugar, according to Manila advices from
George 11. Fairchild, Secretary-Treasurer of the Philippine Sugar Association. This yield compares with 781.539 long tons for the previous crop,
and is an increase of 202.485 tons, or 26%.
Record Hawaiian Sugar Crop.
The following from Washington is from the "Wall Street
Journal" of Sept. 24:
After conferring with President Hoover, Governor Lawrence Judd of
Hawaii declared Thursday that Hawaii this year has the largest sugar crop
in its history, amounting to about 1,000.000 short tons as compared with
980.000 tons last year. The pineapple industry fell away behind this year
due to the light demand, only 4,470,000 cases being packed against 12,700.000 cases last year.
Governor Judd said that while the tourist trade had fallen off, it compared
favorably with that of other places.
Dutch Government to Aid Java Sugar.
From the "Wall Street Journal" of Sept. 28 we take the
following from Havana:
Jose M. Casanova, member of the Cuban Sugar Stabilization Institute
and delegate to the recent sugar conference at Ostend, has received a cablegram from the sugar firm of Bodenheimer, Paris, advising him thaeat a
meeting of sugar producers of Java, held in Batavia last week, theproposed
Volume 135
Financial Chronicle
intervention of the Holland Government to aid in the organization of an
entity which will control all sugar stocks of Java and possibly future production was accepted.
Settlement of British Cotton Mill Strike—Lancashire
Mills Resume.
Work in the cotton mills of Lancashire, which had been
suspended since Aug. 27 as a result of a textile workers'
strike, began generally to be resumed on Sept. 28 following
the signing of a peace pact the previous day, Associated Press
advices on Sept. 28 from Manchester, England, said.
In Burnley, which was a storm centre of the strike area, nearly all the
mills resumed operation. The only district in which work was not begun
again was that around Nelson, where the weavers were holding out for
further discussion of the settlement terms.
As to the settlement reached a London cablegram Sept. 24
to the New York "Times" said:
2241
which will exchange about 5,000,000 marks[about $1,190,000]
worth of cotton for 50,000 tons of potassium nitrate, to be
furnished by the German Potassium Syndicate. It is added
that the Dresdner Bank, which sponsored the agreement, will
serve as a clearing house for this transaction, which may
lead to further barters.
Takes More American Cotton for
August Than in August 1931.
Central Europe took more American cotton during August
than in the preceding month as well as for August last year,
according to a report by Consul W. A. Leonard, Bremen,
made public by the Department of Commerce on Sept. 20.
We also quote as follows from the Department's announcement:
Central
Europe
The cotton textile strike which has crippled Lancashire for four weeks and
has cost the industry £10.000,000 1834,625,000] was finally settled to-night
after two weeks' negotiations. Three mills will reopen Wednesday, and
meantime the unions and operators will meet to ratify the agreements.
Following yesterday's decision the workers will accept wage reductions.
The employers yielded on the thorny question of reinstatement of workers.
It was decided that "In a spirit of good-will" the manufacturers should reemploy speedily all the workers displaced during the local troubles, which
grew into a big strike. It is expected the reinstatement will be completed
within two months.
The settlement is regarded as a triumph for the conciliators ofthe Ministry
of Labor. While the fundamental problem of Lancashire remains unchanged, with the existence of too many individual mills in a time of dwindling trade, it is felt the settlement has many good points. It establishes
machinery to insure the honoring of the agreements and should minimize
the prospect of labor disputes in the cotton trade for a long time.
Shipments of cotton from Bremen, Germany, t• Germany and other
Central European countries, averaged 22,000 bales weekly as against 20,000
bales weekly for July, a gain of 2,000 bales, and as compared with an
average of 19,000 bales for August 1931.
Cotton stocks at Bremen, which are mainly American, amounted to
305,000 bales as compared with 314,000 bales at the end of July and 315,000
bales at the end of August 1931, it was stated.
Conditions in the German cotton industry, it was pointed out, during
the month of August were practically the same as during the previous
months. Some spinning mills reported a slightly better volume of orders
and a better tone is reported to be prevailing in the cotton goods market,
although no actual increase in sales was reported. While cotton spinners
agreed to extend the curtailment until Sept. 12, cotton weaving mills would
not continue the curtailment which expired on Aug. 20, owing to the opposition of some manufacturers who anticipated an improvement in demand.
The same paper reported the following from London
Sept. 27:
Wages Cut in Italian Sulphur and Cotton Industries.
All wages which have been above the guaranteed minimum
in the Italian cotton and sulphur industries have been cut
ranging from 10% in the former to 50% in the latter, depending upon the nature of the work, while allowing the
"basic" wage-rate to remain the same, according to a report
to the Commerce Department from Commercial Attache
Mowatt M. Mitchell, Rome, Italy. With regard thereto the
Department on Sept. 23 said:
The Lancashire cotton mills will reopen to-morrow under the terms of an
agreement signed to-night by employers and operatives thus ending the ten
weeks' strike at Burnley and the four and a half weeks' general stoppage
which involved 160.000 workers.
The General Council of the Weavers' Amalgamation caused a last-minute
hitch and only after three hours' debate did it approve the agreement by a
vote of 97 to 53.
The agreement contains; a provision for a reduction of wages, rules for
the settlement of trade disputes, prices of new cloths and the treatment
of minor differences. Reinstatement of strikers is also provided for. A
joint committee will be established to deal with economic and legislative
measures affecting the cotton industry at home and abroad. The wage
reduction 18 equivalent to 1 shilling 8% pence in a pound, or 15%% on piece
rates.
Reinstatement of strikers was the issue that precipitated the walk-out,
rather than question of wages and working conditions. The operatives
demanded the return of jobs to 3,000 union members who had struck last
Spring when some mills altered wages and hours without waiting for a
general agreement in the industry.
According to a London cablegram Sept. 27 to the "Journal
of Commerce" the agreement was signed Sept. 27 by representatives of the various mill and labor organizations involved
and by F. W. Leggett, Chief Conciliation Officer of the
Ministry of Labor, who acted as mediator in the dispute.
The following is from the "United States Daily" of Sept. 28:
A satisfactory settlement of a strike involving about 200.000 workers in
the weaving section of the British cotton textile industry has apparently
been negotiated, according to information made available Sept. 27 by the
Department of Commerce.
The agreement just reached provides for the reinstatement of the workers
who had gone on strike in industrial mills in protest against wage cuts, and
for a reduction of actual earnings of approximately 8%%. ept. 28 has
been set as the date of the probable resumption of mill operations, it was
pointed out. The general strike became effective Aug. 27.
The office of Commercial Attache William L. Cooper, London,cabled the
following additional information to the Department:
The trouble began last June when employers terminated the wages and
hours agreement that had been in effect since 1919 and individual mills were
left free to conclude wage agreements with their operatives.
Leaders in the industry felt, however, that a general wage schedule for
operatives throughout the weaving section would be more satisfactory and
discussions between employers and operatives were resumed late in July,
only to be broken off not over the main issue of wage reductions but over
the reinstatement of workers who had gone on strike when individual mills
slashed wages.
Both groups are expected to ratify the agreement just reached.
An item regarding the strike appeared in our issue of
Sept. 24, p. 2061.
British Spinners Trim Wage Demand to Match Concessions to Weavers.
A cablegram as follows from London Sept. 28 is taken
from the New York "Journal of Commerce":
IN When Joint negotiations between representatives of the Federation of
Master Cotton Spinners and the Labor Unions are resumed next Thursday
atIManchester the employers will modify their wage demands; further to
bring them in line with the reductions agreed upon in the settlement of the
weaving strike last week-end.
The new request will be for just under 18.8d. per pound wages,it is understood. The workers will resist this proposal and hold out for their original
offer to accept about 9%ci. reduction per pound.
Egypt Will Exchange Cotton for German Potassium
Nitrate.
According to a cablegram from Bremen, Sept. 26, to the
New York "Times," a group of cotton importers here has
concluded an agreement with the Egyptian Government
Sr
In neither case are the "basic" wage rates published or available, the
report stated.
In the cotton industry, prevailing wages have been above the guaranteed
minimum, and the new agreement, reached after considerable discussion
between representatives of corporations and syndicates under auspices of
the Ministry of Corporations, provides that such wages may be cut 10%,
while the "basic" wage remains the same.
A much discussed point was the wage scale for workers operating a
larger than usual number of spinning and weaving machines, and this point
has been settled by an agreement to pay such workers on a scale as much
higher than the average wage as the number of looms operated is above
the average number operated by the average worker.
The Sicilian sulphur mines have been largely idle since the dissolution
of the sulphur consortium, and it is now planned to reopen them with the
following wage arrangement: When the mines closed wages in general
were above the contract minimum, and it has been agreed to reduce these
extra payments by 30 to 50%, according to the nature of the work done,
while maintaining the "basic" wage at its present point.
Both of these agreements are taken as examples of the ability of the
Corporate State to meet wage disputes, without recourse to strikes or lockouts, which are prohibited by law, and even without reference to labor
courts whose jurisdiction would have been involved had the employers and
employees found it impossible to reach an agreement, it was stated.
China Buying More United States Cotton Textiles.
An apparent revival in American textile trade with China
is revealed in figures compiled by the Commerce Department's Textile Division. According to the Department
(Sept. 24), during the first six months of the current year
Chinese purchases of unbleached ounce duck from the United
States increased more than three-fold as compared with
the corresponding period of 1931, rising from 73,000 square
yards to nearly 254,000 square yards. It is further stated:
Exports of unbleached drills from the United States to China rose from
practically nothing in the first half of 1931 to 400,000 square yards in the
present year. Other textile items which showed notable advances in our
export trade with China in 1932 were pajama checks and colored goods
and prints.
Increase in World Consumption of Cotton.
World consumption of American cotton increased 112,000
bales from July to August, according to the New York
Cotton Exchange Service. Spinners used 1,028,000 bales of
American cotton during August as against 916,000 bales in
July, 940,000 bales in August last year, and 799,000 bales in
August two years ago. Under date of Sept. 26 the Exchange
Service added:
The increase in world consumption during August was entirely
due to
the stepping-up of consumption in the United States
from 270,000 bales
In July to 393,000 bales in August. Abroad,
consumption declined from
646,000 bales in July to 635,000 bales in August. Consumption of American
cotton in Great Britain was curtailed during the month, owing to the
falling off in yarn demand as a consequence of the strike in the weaving
section of the British industry. On the Continent, consumption was maintained at about the same level as in July, while in the Orient spinners
continued to use American cotton at about the same rate as in recent
months and at a much higher rate than a year ago.
2242
Financial Chronicle
Strike Settled at Cotton Mill in North Carolina—
Workers and Management of Amazon Cotton Mill
Reach Agreement.
According to Associated Press advices from Thomasville,
N. C., Sept. 24, settlement of the lone strike raging in that
city was effected on that day when workers and the management of the Amazon Cotton Mill reached an agreement.
We also quote further from the advices as follows:
The mill, a subsidiary of the Cannon towel mills, will reopen Sept. 26
with a force of 100 employees. Mill officials said the other 140 workers
would be taken back as rapidly as conditions justify.
Announcement of settlement of the strike was made by Capus M. Waynick, Editor of the High Point "Enterprise," who acted as intermediary
in the strike, representing Governor 0. Max Gardner.
Amazon workers went on strike Aug. 25 at the same time the Thomasville Chair Co. workers and employees of a veneer plant here struck. They
demanded a higher wage.
Under the agreement effected Sept. 24 the mill management will abandon
its policy of deducting from workers' pay money spent at the company's
stores. The only deductions to be made in the future are for house rent,
light and similar charges.
A petition of workers willing to accept the old wage scale asking that the
mill reopen was presented company officials to-day. Strikers abandoned their demand for higher pay.
Work will be resumed only in the colored yarn department Sept. 26.
Officials said as soon as conditions permit the other employees would be
taken back. They pointed out no new workers would be hired.
Weavers and Spinners of Beaver Brook Mills in Dracut,
Mass., Strike—Due to Wage Reductions of 5732%
During Past 18 Months.
Advices from Lowell, Mass., Sept. 26, to the Boston
l'Herald" said that approximately 400 weavers, spinners
and operatives at the Beaver Brook Mills of the American
Woolen Co. in Dracut walked out on Sept. 26 in protest
over wage cuts. The advices also said:
At a meeting in Harmony Hall, Collinsville, the striking operatives
appointed a general committee in charge of the action and voted to begin
Picketing the plant at 6:30 a. m.to-morrow. The remaining 200 operatives
who did not join the walkout are expected to leave their work Sept.•27,
strike leaders said.
The walkout is in Protest over wage reductions that have aggregated
574% in the past 18 months, strikers say, and included in their demands
is a request that 3734% of this amount be returned to them.
R. P. Robinson, agent of the mill, declined to make any statement concerning the walkout.
Spinners in Rhode Island Strike Over Wage Reduction.
About 200 spinners in the Lawton Spinning Co. left their
work Sept. 26 in what they said was a protest against a
25% wage reduction, said Associated Press advices from
Woonsocket, R. I., on that day. The spinners said their
average pay was $7 a week. The mill officials declined
any statement.
••••••••01
Reynolds Spring Co. Recalls 800 Workers at Plants
in Michigan.
announcement
made Sept. 26 by Charles
an
According to
G. Munn, President of the Reynolds Spring Co., 800 employees will be put to work at the company's plants in
Jackson, Mich., between now and Oct. 15. During September, 350 employees were rehired. The "bakelite" plant
of the company, Mr. Munn said, has been operating seven
days a week on a 24-hour basis each day and the company
expects to continue operations at this schedule. The company's cushion spring plant in Jackson is operating, but
not on a full-time basis.
Oct. 1 1932
move.will not receive reductions in their weekly salaries.
From the New York "Times" of Sept. 30 we take the following:
The movement toward the five-day week has been sponsored by President
Hoover's Unemployment Relief Committee, headed by Walter C. Teagle,
President of the Standard Oil Co. of New Jersey. The purpose of the
movement is to spread employment by distributing work among as many
persons as possible, thus reducing the number of those in distress.
In connection with the new work-week schedule for the office workers
of the General Motors Corporation, it was reported that the corporation
may find it necessary to increase the number of office workers in certain
departments to put the five-day week into effect. All office workers of
the parent company who are employed in Detroit and this city will be
placed on the five-day week but It will be optional with the divisions of the
company whether or not to follow the example.
Adjustments in Wages Made by Ford Motor Company.
Associated Press advices from Detroit, Mich., Sept. 29
said that the Ford Motor Company on that day announced
"pay adjustments" affecting all employees of the company
from the highest executives down. The statement of the
company, according to the advices, said that the new minimum for common labor will be 50 cents an hour, but that
the majority of the factory employees will receive 623' cents
an hour.
The statement in full said:
From the highest executive to the ordinary laborer, Ford employees will
receive pay adjustments which it is hoped will be temporary, based on a reclassification of the types of work performed.
For common labor, a 'hiring in' minimum of 50 cents an hour has been
scheduled. The new minimum for semi-skilled labor is 6234 cents an hour.
Skilled labor receives its former minimum of 75 cents an hour. unchanged,
The actual wages paid will range from the minimum figures upward.
This leaves the Ford Motor Company wage schedule the highest in the
automotive industry.
A comparatively small number of men will be effected by the lowest'
brackets, the majority receiving 623,i cents per hour and upward.
We also quote as follows from the advices:
The Ford working day is eight hours. Henry Ford announced establishment of a minimum of $5 a day for his employees nearly 20 years ago. This
subsequently was raised to $6 and,in the fall of 1929,to $7. A return to the
$6 scale was announced about a year ago.
Syracuse, N. Y., Gives Work to 4,200 Men.
Forty-two hundred men of Syracuse, N. Y., from the
city welfare and veterans' relief rolls are working on work
relief projects, Mayor R. B. Marvin announced on Sept. 26
said the Syracuse "Post" of Sept. 27, which added in part:
This figure, the mayor said he had been informed, represents practically
every able-bodied man on the rolls, although when the expanded work
Program originally was announced at mid-year, the official estimate was
5,200. The expansion of the work force has proceeded much more slowly
than the mayor's first optimistic estimate, but it has now reached its virtual
maximum.
The officials informed him, Mayor Marvin said, that a number of other
communities are following the Syracuse plan of work and home relief.
Rochester, entering into the work program more tardily than Syracuse,
now has about 2,000 men on.
Other communities using a similar relief program include Buffalo, Elmira,
Binghamton, Utica and Schenectady.
Petroleum and Its Products—Cut in Crude Oil Price
Structure Impends as Leaders Discuss New Remedial Measures—Favor Further Curtailment and
Maintenance of High Scale.
Posted crude oil prices in mid-continent and Texas fields
are in grave danger of being sharply reduced in the immediate
future, as declining prices on refined products continue to
spread throughout the country, and as crude production
shows no signs of being curtailed sufficiently under existing
measures to bring the output down to a basis comparable
with demand.
Buick Motor Co. Adds Additional Men at Plant in
Leading companies in the fields affected are said to be
Flint, Mich.
reluctant to take the initial step of reducing prices, and
Buick
the
of
President
C. B. Stiffler, Assistant to the
Governor Murray, of Oklahoma, has declared that he will use
Motor Co., Detroit, Mich., announced on Sept. 26 that whatever executive influence is available to maintain the
550 additional men besides the regular force will be employed present scale. It was the Oklahoma Governor who led the
by the company during the winter. He said that the addi- way to higher prices last year by calling out the state militia
tional employment is due to the manufacturing of parts for to enforce production schedules.
the Old Motor Co., formerly made in a plant at Muncie,
Frank Phillips, president of the Phillips Petroleum Co.,
Ind., or Flint, Mich. The Indiana plant has been aban- expressed himself freely in opposition to price cuts, stating:
doned. The additional employment will be given to "I am not disposed to criticise the few interests who are
mechanics now living in Flint only.
reported to be planning a price out. I do differ with them.
Both Oklahoma and Texas have taken extraordinary steps
Office Workers of General Motors Company Co on to put an end to production in excess of allowables. With
that evil under control, I can see no reason or justice in a
-Five-Day Week.
Effective to-day (Oct. 1) the office staffs in New York and price out that will bring so many greater evils in its wake.
Detroit of the General Motors Corporation will be placed on Commodities must go up, not down, if we are to have a
a five-day week it was learned Sept. 29. This action which return to real prosperity."
The recent order of the Texas Railroad Commission inis in co-operation with President Hoover's plan to spread
employment, does not affect wage earners who are em- creasing the allowable of the East Texas field by 50,000
ployed by the company in its plants on an hourly pay basis. barrels per day to a total output of 375,000 barrels per day,
The 10,000 to 15,000 employees who are affected by this has been heavily criticised as bringing about the present cry
Volume 135
Financial Chronicle
of "over-production" and resultant movements for price
reductions. The Commission has recognized these complaints by calling a special meeting to be held in Austin on
October 8, to discuss the oil situation in general and possible
reductions in particular. This move has placed a slightly
more favorable outlook upon the situation, and it is probable
that no move will be made to change the price structure until
the results of this meeting are learned. Leaders are not
disposed to jeopardize the improved condition of the petroleum industry by a hasty move of this character, which would
in one stroke undo all that has been accomplished in the past
year, and undermine the confidence which has returned to
the industry in marked degree.
Another important factor which is being vigorously investigated is the illegal production in East Texas. This is
crude which is brought out of wells in violation of the field
regulations, and without the knowledge of officials governing
the production. It is believed that this illegally produced
oil has been the source for much of the cheap gasoline which
has flooded the eastern markets and brought on a general
reduction throughout the eastern market.
No definite information is yet available regarding the
probable turn the Austin conference will take, but it is
unofficially believed that the aim will be a reduction of
100,000 barrels daily, with the greater part of this out applied
against the East Texas field.
Amos L. Beaty, president of the American Petroleum
Institute, sees further curtailment imperative if the industry's
gains are to be held. He says that: "Producers of crude oil
have the power in their hands. If, instead of increasing
their production, as they have been doing recently, they will
bring it down even to a level with refinery demand, and hold
it there, conditions will improve. But production should
be below refinery demand in order that surplus stocks above
ground may be liquidated.
"Everything was moving along nicely, with moderate
profits in most cases, until the Railroad Commission of
Texas, yielding to the importunities of certain producers,
recently increased the allowable output of the East Texas
field. And this was done despite the previous holding of
the commission, made on more than one occasion, that
production in excess of the old top allowable of 325,000
barrels daily for the field would result in waste of reservoir
energy."
Mr. Beaty concludes that "it is up to the East Texas
producers and the Railroad Commission to correct the recent
error. To bring about a perfectly healthy condition in the
industry, now that a seasonal decline in consumption is
occurring, production in all fields should be reduced. I
think producers are awake and that they will not ignore the
lessons of the past. I expect to see them do something
sensible and constructive."
A reduction of from 25,000 to 30,000 barrels in the daily
allowable output of California's fields will bring the total
daily production to about 448,000 barrels, effective to-day,
Oct. 1, and continuing through the balance of the year.
The further stabilization for foreign petroleum markets
has been accomplished by the international oil conferences,
according to C. E. Arnott, president of Socony-Vacuum
Corp. Mr. Arnott returned to America Thursday from
Europe, where the last sessions of the conference had been
held. They originated in New York this Spring and were
adjourned to Paris.
Mr. Arnott said that the conference results were entirely
satisfactory, and that the compact entered into, which will
affect only the foreign oil market, allowed the Rumanians
to keep their present quota of foreign oil markets. Mr.
Arnott stated that:"We met early in the summer and arrived
at a tentative agreement which had to be ratified by the
Rumanian oil interests and the boards of the international
oil companies. This agreement was ratified by the various
interests and when we met again in September a few differences of opinion had arisen which had to be ironed out."
He added that all of the companies involved in the negotiations now had a much better understanding of each other's
ideas and principles which should go far in stabilizing foreign
markets.
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown.)
Bradford, Pa
$1.87 Eldorado, Ark., 40
$078
Corning, Pa
1.05 Rusk, Texas, 40 and over
.83
Illinois
.80 Salt Creek. Wyo.,40 and over
94
.90 Darst Creek
Western Kentucky
.90
Mid-Continent, Okla.,40 and above 1.00 Midland Dist., Mich
.85
and
40
over....
.78 Sunburst, Mont
Hutchinson. Texas,
1.05
Spindietop. Texas, 40 and over-- .78 Santa Fe springs, Calif.,40 and over 1.00
Winkler, Texas
.86 Huntington, Calif., 26
1.00
Smackover, Ark., 24 and over
.77 Petrolia, Canada
1.75
2243
REFINED PRODUCTS-GASOLINE PRICE CUTS SPREADING
THROUGHOUT NATION AS INDUSTRY ENTERS LOW CONSUMING PERIOD WITH OVERPRODUCTION OF CRUDEKEROSENE IMPROVEMENT BRIGHTENS DULL PERIOD.
Gasoline price reductions spread throughout the eastern
seaboard territory during the week, and are reported to be
affecting the general price structure throughout the country.
The Standard Oil Company of Kentucky made the most
recent important move when, on Thursday, it cut its Crown
and Ethyl grades Mc.a gallon in Kentucky, Georgia, Florida,
Alabama, and Mississippi.
Weakness in the metropolitan territory brought on a reduction of le. a gallon in tank wagon and service station
prices, made by Standard of New York on Wednesday,
effective in the metropolitan district, Long Island, Westchester, and Connecticut. The cities of Albany and Buffalo
also received the cut. The cut in Boston was 1 Mc. a gallon,
bringing the new price there to 10c. tank wagon and lle.
service station, excluding tax. The new price in New York
lle, service station excluding tax.
Standard of Pennsylvania reduced tank wagon and service
station prices lc. in eastern Pennsylvania and metropolitan
Philadelphia, and 1 Mc. in western Pennsylvania, and a similar reduction was made by Atlantic Refining, which, however, included the state of Delaware in the le. reduction.
Standard of Ohio on Wednesday reduced gasoline Me. a
gallon throughout its territory, while Standard of Indiana,
the following day, cut service station prices on regular and
premium gasolines 2e. a gallon at Aurora and Joliet, Ill.
The New York company's lc. reduction has been or will
be met by all leading refiners.
Regardless of the weakness which marks the gasoline
market at present, there remains an undercurrent of confidence that the price structure will be readjusted upward
within the next few weeks. The crude situation has brought
on much of the bearish atmosphere, but producers are taking
rapid steps to alleviate this condition through strong and
definite measures looking to an entirely new production
set-up which will keep the nation's output well within the
limits of actual consuming demand.
Kerosene has been more active in the local market during
the week, and a large volume of contract business is being
consummated at the posted prices. Water white 41 to 43
is held at 53/2c., tank car, at refineries.
Grade C bunker fuel oil and Diesel oil hold firm and unchanged.
Price changes follow:
Sept. 26.-Atlantic Refining Co. reduces service station and tank wagon
gasoline prices lc. a gallon in Delaware, eastern Pennsylvania and metropolitan Philadelphia, and 134c. in western Pennsylvania.
Sept. 26.-Standard Oil Co. of Pennsylvania reduces tank wagon and
service station gasoline price lc. in eastern Pennsylvania and metropolitan
Philadelphia, and 1 Mc. in western Pennsylvania.
Sept. 28.-Standard 011 Co. of Ohio reduces all grades of gasoline Mc. a
gallon throughout territory. With the exception of localities where prices
have been adjusted to meet local conditions, Sohio Ethyl is now 20c..170Is
17c. and Renown green gasoline 16c., all including tax at service stations.
Sept. 28.-Standard Oil Co. of New York reduces gasoline lc. a gallon
tank wagon and service station throughout metropolitan New York, Long
Island, Westchester and Connecticut. Same reduction applies also in
Buffalo and Albany. Reduction at Boston is 134c. a gallon. New prices
met by leading refiners.
Sept. 29.-Standard Oil Co. of Kentucky reduces gasoline prices %c. a
gallon throughout Kentucky, Georgia, Florida, Alabama, and Mississippi.
Sept. 29.-Standard of Indiana cuts regular and premium gasoline 2c. a
gallon at Aurora and Joliet, Ill.
Gasoline, Service Station, Tax Included.
5.14 Cleveland
New Orleans
128
19 Denver
20 Philadelphia
.13
184 Detroit
25 San Francisco:
165 Houston
7
Third grade
.119
165 Jacksonville
185
Above65octane._ .180
15 Kansas City
155 Premium
214
17 Minneapolis
147 St. Louis
14
Kerosene, 41-43 Water White, Tank Car Lots, F.0.13. Refinery.
N.Y.(Bayonne)--- .05H I Chicago
$ 02%-.03,14 New Orleans,ex_341.0344
North Texas
.03 !Los Ang.,ex- .0434-.06 ITulsa
04S4-.03H
Fuel Oil, F.O.B. Refinery or Terminal.
N.Y.(Bayonne)California 27 plus D
Gulf Coast C
5.6
Bunker 0
.75
5.75-1.00 1Chicago 18-22 D...42-.50
H
Diesel 28-30 D.-- 1.65 New Orleans0
.60 Philadelphia C
.70
Gas Oil, F.O.B. Refinery or Terminal.
N.Y.(Bayonne)i ChicagoI Tulsa28 plus00-5.03M-.041 32-36 G 0
5.0134 1
5.0114
Gasoline, U. S. Motor, Tank (Above 65 Octane), Car Lots, F.O.B. Refinery,
N.Y.(Bayonne)N.Y.(Bayonne)$ 05M-.05)/
Chicago
Standard 011, N.J.Sinclair
New Orleans.IX. .05-.05
Motor, 60 00Pan-Am. Pet. Co. .06
Arkansas
.04-.04
lane
5.0534
Shell Eastern Pet- .0734 California__ .05-.0
Motor, 65 00New YorkLos Angeles,ex .0434-.07
tans
oe
Colonial-Beacon 8 08H Gulf Ports__ .05-.054i
Motor,standard 06
Crew Levick
08H Tulsa
.06-.05M
Stand. Oil, N. Y. •
• z Texas
.08H Pennsylvania.0534
Tide Water Oil Co .0834
Gulf
08
Richfield Oil(Cal.).0834
Continental
0834
Warner-Quin. Co.. .013H
Republic 01L-_-•.08
•Below 65 octane.
a 'Fire Chief" .0834.
•• Standard 011 of N. Y. now quoting on basis of de ivered price not more than
50. Per gal, under company's posted service station pr ce at point
and date of delivery but in no event less than 8340. a gal., f.o.b. New York Harbor.
exclusive
of taxes.
New York
Atlanta
Baltimore
Boston
Buffalo
Chicago
Cincinnati
Financial Chronicle
2244
Oct. I 1932
M
1
er I
r0rntal
Cn--07C-OCIVOC-C>C0
.
7,300
2,600
32,000
481,900
Montana
Colorado
New Mexico
California
op0000000000000p00000
O,
C,
C4.-1,-
•-•
c:t•.:e.;',7;c41-:cticSwie;riOc•ic;c7.it•:ci.ccr 1
co C.Vel.NC),
0GO ..0 C•1 D,.I• COO Cl CO
CO t.-
M
Daily Crude Oil Production Declines 13,050 Barrels price of 12c. a gallon, plus tax, throughout Pennsylvania,
which represents a reduction of lc. a gallon.
in Week-Gasoline Inventories Again Lower.
4.
States
United
oil
production
in
the
average
crude
daily
The
Gasoline
Price
by
Standard Oil Co. of Ohio.
Reduced
declined 13,050 barrels a day in the week ended Sept. 24,
Effective Sept. 28 the Standard Oil Co. of Ohio reduced
the daily rate for the week being 2,178,550 barrels a day,
compared with 2,191,600 barrels in the preceding week and the price on all grades of gasoline throughout its territory
a gallon.
an average of 2,166,300 barrels daily in the last four weeks,
the American Petroleum Institute reports.
Gasoline inventories continued to decline during the week, Price of Gasoline Reduced by Standard Oil Co. of
New York.
aggregating 52,328,000 barrels on Sept. 24, against 53,099,The price of tank-wagon and service-station gasoline was
000 barrels on Sept. 17, a reduction of 771,000 barrels. At
the beginning of September 1931 stocks of gasoline in stor- reduced lc. a gallon in the New York metropolitan district,
age in the United States aggregated 50,810,000 barrels, or Long Island, Westchester, Connecticut, Albany and Buffalo,
on Sept. 28 by the Standard Oil Co. of New York. A re1,518,000 barrels less than at present.
Reports received during the week ended Sept. 24 1932 duction of 13'c. a gallon was made in Boston. The new
from refining companies controlling 93.6% of the 3,856,300 prices are as follows: Ile, a gallon, excluding the tax of 4c.
barrel estimated daily potential refining capacity of the a gallon at service stations in the metropolitan area of New
United States, indicate that 2,104,000 barrels of crude oil York and in Boston; 15.5c., including State and Federal
daily were run to the stills operated by those companies and tax at Albany and 16.5c. at Buffalo, which price also inthat they had in storage at refineries at the end of the week cludes both State and Federal taxes.
33,572,000 barrels of gasoline and 136,062,000 barrels of
gas and fuel oil. Gasoline at bulk terminals amounted to Lead Reduced Sharply in Dull Market-Copper Steady
-Little Change in Zinc.
12,600,000 barrels and 1,156,000 barrels were in waterborne transit in or between districts. Cracked gasoline pro"Metal and Mineral Markets"in its issue of Sept. 29 1932
duction by companies owning 95.6% of the potential charging pointed out that the only price change of importance that
capacity of all cracking units averaged 422,000 barrels daily took place during the week in non-ferrous metals occurred
during the week.
in lead. The lull in buying that set in early in the month
The report for the week ended Sept. 24 1932 follows in continued, and one of the leading factors in this metal, who,
detail:
under present conditions, is operating chiefly as a custom
smelter, lowered the price during the week from 3.40 cents,
DAILY AVERAGE PRODUCTION OF CRUDE OIL.
(Figures in Barrels.)
New York, to 3 cents flat. Copper sales in the domestic
market were a little larger than in the preceding week,
Average
4 Weeks
Week
Week
Week
though
the tonnage sold was well below normal. Zinc
Ended
Ended
Ended
Ended
Sept. 24 Sept. 26
showed little change until toward the close of the period,
Sept. 17
Sept. 24
1932.
1031.
1932.
1932.
when scattered lots came on the market at moderate price
390,400
389,000
264,300
Oklahoma
concessions. Tin was very quiet so far as consumers were
100,950
97,850
107,850
Kansas
46,650
48,750
67,100
Panhandle Texas
concerned, yet the net change for the week in prices was
48,550
49,350
54,100
North Texas
small. Interest in quicksilver appears to be reviving, and
23,850
24,050
25,900
West Central Texas
169,850
169,550
204,850
West Texas
most traders seemed to take a firmer view of the situation,
53,950
55,750
East Central Texas
57,850
361,300
371,500
East Texas
429,250
based largely on the steady shrinkage in production. Non54,750
Southwest Texas
54,750
57.100
29,850
29,200
metallics are receiving more attention, indicating that the
North Louisiana
29,750
33,750
Arkansas
34,000
38,100
period of almost complete stagnation in this division is
123,600
Coastal Texas
137,150
144,000
25,300
33,950
Coastal Louisiana
34,350
slowly
coming to an end. "Metal and Mineral Markets"
100,200
104,500
Eastern (not including Michigan)
95,800
25,050
Michigan
24,500
12,100
continues as follows:
34,050
Wyoming
31,900
36.650
7,200
2,750
31,900
480,100
7,900
3,950
43,150
500.600
2 170 000 2 101 imn 9 1RR 000 2 102 .111
CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS, AND GAS AND FUEL
OIL STOCKS FOR WEEK ENDED SEPT. 24 1932.
(Figures in Barrels of 42 Gallons.)
EL,
Daily Refining Capacity
of Plants.
Crude Runs
to Stills.
District.
Reporting.
Potential
Rate.
East Coast
Appalachian._ _ _
Ind., Ill., Ky._ _
Okla., Kan., Mo.
Inland Texas
Texas Gulf
Louisiana Gulf
No. La. & Ark_ _
Rocky Mountain
California
644,700
144.700
434.900
459,300
315.300
555,000
146,000
89,300
152,000
915,100
Daily OperAverage. ated.
Total.
638,700
137,500
424,000
405.800
227.200
545.000
142.000
84,500
139.000
866,100
99.1
95.0
97.5
88.4
72.1
98.2
97.3
94.6
91.4
94.6
443,000
88,000
278,000
224,000
85.000
385,000
86,000
43,000
31,000
441,000
a Motor
Fuel
Stocks.
Gas and
Fuel Oil
Stocks.
69.4 14,356,000 9,285,000
64.0 1,691,000 1,008,000
65.6 6,830.000 4,299,000
55.2 4,523,000 3,189,000
37.4 1,362,000 2,079,000
70.6 5,147,000 10,493.000
60.6 1,475,000 4,462,000
580.000
50.9
175,000
516,000
22.3 1,395,000
50.9 15,374,000 100,151,000
Totals week:
Sept. 24 1932. 3,856,300 3,609,800 93.6 2,104,000 58.3 c52328000 136,062,000
F Sept. 17 1932_ 3,856,300 3,609.8001 93.6 2.058,000 57.0 53,099,000 135.271,000
a Below is set out an estimate of total motor fuel stocks on U.S. Bureau of Mines
basis for week of Sept. 24 1932,compared wi h certain September 1931 Bureau figures
53,320,000 barrels
A. P. I. estimate B. of M. basis week Sept. 24 1932_b
50,810,000 barrels
U.S. B. of M. motor fuel stocks Sept. 1 1931
50,122,000 barrels
U. S. B. of M. motor fuel stocks Sept. 30 1931
b Estimated to permit comparison with A. P. I. Economics report, which is of
Bureau of Mines basis.
c Includes 33,572,000 barrels at refineries: 12,600,000 at bulk terminals; 1,156,000
barrels in transit, and 5,000.000 barrels of other motor fuel stocks.
Pennsylvania Gasoline Price Reduced.
The Atlantic Refining Co., effective Sept. 26, reduced
the price of gasoline in tank wagons and at service stations,
1 to 13'c. a gallon throughout Pennsylvania. The price
in the metropolitan Philadelphia area is now 12c. a gallon,
plus tax, and the retail price outside of Philadelphia is 123/20.
At the same time the Standard Oil Co. of Pennsylavania
reduced the service station price of gasoline, and the price in
tank wagons, lc. a gallon in eastern Pennsylvania and in the
western part of the State, 13/20. Its prices are now 12c.,
plus tax, for standard, and 15c. plus tax, for Esso, at service
stations in Philadelphia and 13 Mc. a gallon in western
Pennsylvania. The Sun Oil Co. also announced a new
Copper Prices floid.
The copper market gave a pretty good account of itself in the face of
general unsettlement in Wall Street and highly irregular commodity Prices.
Though new business was anything but active, the tonnage sold during
the week was better than a week ago. The domestic price was firmly
maintained by producers on the 6.25 cents, Connecticut basis, with more
than one important operator virtually out of the market. Most of the
business booked was in first-quarter shipment metal.
The export quotation held at a slightly higher level than in the preceding week. Foreign demand has dwindled, contrasted with a month
ago, yet leading foreign producers do not seem to be at all anxious to
force the market. Early in the week the bulk of the foreign business
. regular European ports. On Tuesday
booked was at 6.10 cents, c.i.f.
and yesterday the foreign prices was a shade lower, settling at 6 cents.
Copper exporters did virtually nothing during the week, asking prices
being somewhat above the going market.
One reason for the comparative steadiness in copper is that several
important matters affecting business are pending. The meeting of foreign
producers scheduled for next month should, in the opinion of traders,
clear the atmosphere considerably. Also, it will soon be known what
stand the British will take in reference to the proposed preferential tariff.
The recent Improvement in the general financial position has no doubt
removed the threat of forced selling from the market, which tends to
support values.
Fabricators took on a good volume of business in the period when prices
were rising, and, for a time, specifications also increased. In the last
two weeks, however, demand for copper products has fallen off rather
sharply. Producers show no great concern over this spotty condition
of business, for hardly any one looks for a sustained rapid rise in general
business.
Imports of blister and refined copper into the United States during
August totaled 6,262 tons, against 4,334 tons in July, and 25,858 tons
in June. Most of the copper imported during June arrived before the
tax of 4 cents per pound became effective. Exports of refined copper
during August were larger than in either of the two preceding months,
the total being 9,710 tons. This compares with 5,494 tons exported In
July, and 8,559 tons in June.
Lead Down to 3 Cents, New York.
The unexpected weakness that made an appearance in lead in the preceding week continued throughout the seven-day period that closed Yesterday. The market underwent no further change until Monday, when
the American Smelting & Refining Co. announced a 10-point reduction
in its contract basis, to 3.30 cents, New York. The moderate offerings
of lead were not taken up at this figure, and on the following day a 13-Point
reduction was announced that brought the selling basis down to 3.15 cents.
Yesterday, the same factor reduced the price to 3 cents, New York, making
a net decline for the week of 40 points. The Smelting Co. offered lead in
the St. Louis market at the prevailing differential of 15 points under the
New York basis throughout the week.
Other operators in lead were inclined to remain out of the market until
the situation shows some improvement. The leading producer in the
Middle West restricted offerings during the last week, aiming to take
care of regular customers only, and nearly all of the business reported
in this direction was closed on the basis of E. & M. J. quotations.
Volume 135
Financial Chronicle
r
Lack of demand was given as the reason for the decline in prices. The
seller who took the initiative in lowering prices has been unwilling to
accumulate metal taken in on a custom-smelting basis. In some quarters
it was stated that the flow of battery plates has been rather large of late,
which may have had some influence on the present situation in lead.
Steel
to 173/2% of Capacity-Prices
Unchanged.
Steel ingot production has risen this week to an average
of 173.% for the entire country, largely because of a gain at
Chicago from 13 to 17%, but aided also by lesser improvement at Pittsburgh and in the Valleys, reports the "Iron
Age" of Sept. 29. The Birmingham district, at 33%, has
the best operation in the country, but is closely followed by
the Wheeling district, which is at 30% for the second week,
adds the "Age" which further reports as follows:
Production Rises
With the higher rate this week. September output will closely approximate that of June, when daily production of ingots was 34.511 gross tons
compared with the low record of 30,830 tons in August. Further improvement is rather definitely indicated for October, though it probably will
come about gradually and in small measure. September orders for many
steel companies have been 8 to 10% heavier in the aggregate than those of
August.
It is significant that most of the gain at Chicago has come principally
in orders from the miscellaneous group of buyers, including many small
shops, with the major steel consuming industries contributing less than
their normal portion to the better tonnage, a situation that prevails, in
fact, throughout the country.
Major industries are expected to become more of a factor in the steel
market within the next 30 to 60 days. Railroads are opening up repair
shops, and, though their purchases thus far are small, they will need
material soon. The Pennsylvania will ask for prices this week on about
9,000 tons of plates and 6.000 tons of shapes and bars for the building
of
1.285 cars in its own shops, and has placed orders for 7,500 light rolled
steel wheels. The New York New Haven 8z Hartford has formally a-plied
to the Reconstruction Finance Corporation for a loan of $700.000 for the
repair of 93 locomotives and 160 freight cars. The Central of New Jersey,
which has applied for $500.000. will repair 75 locomotives, 900 freight cars
and 55 passenger cars and marine equipment. The New York Central Is
expected to announce shortly a large repair program, and other roads
undoubtedly will follow.
Large construction projects to be financed by Reconstruction Finance
Corporation loans will be slower to reach the steel mills than the requirements of the railroads, but progress is being made on several important
applications. A loan has been approved for the Belt Line bridge over the
Mississippi River near New Orleans, which will require 58,000 tons of
structural steel and 5,000 tons of reinforcing bars. The structural material
has been allocated to two fabricators. An early report is expected from
Reconstruction Finance Corporation engineers on a tunnel from
BrooklYa
to Staten Island, which will require 25,000 tons of steel. Plans have been
made to expedite the granting of many small loans by the Reconstruction
Finance Corporation. Structural steel inquiries total 18.400 tons, the
largest since the last week of August. and lettings amount to 15,200 tons.
The automobile industry is proceeding somewhat more slowly with
production of new models than had been expected. However. Buick will
begin manufacturing parts for its new car next month, Dodge Brothers
division of Chrysler Corp. has bought about $100,000 worth of machine
tools for model changes, and Continental-De Vaux is proceeding with plans
for a new light car. Meanwhile. Chevrolet has stepped up production to
build 10.000 more of its present model than had been contemplated as the
result of an intensive sales drive. Ford's output has receded somewhat.
now being 1.500 to 2,000 cars a day three days a week. Aside from tonnage
placed by Chevrolet for its additional production, orders from the
motor
car industry are of small proportions.
Pig iron markets are less active than they were a few weeks ago, but shipments are gaining, the increase at Chicago as compared with August being
50%. An inquiry for 15.000 to 20.000 tons of basic pig iron is current at
Pittsburgh. The distribution of orders for 50,000 tons of pig iron by the
American Radiator & Standard Sanitary Corp. is expected to bring smaller
melters into the market, as buying movements in the past have usually
been initiated by the large consumers.
Scrap still displays a firm tone, though price changes are fewer. A Steel
Corporation subsidiary has bought 21,000 tons of steel scrap for its Lorain.
Ohio, works, and a large purchase by this interest In the Chicago district
is expected.
Steel prices for the fourth quarter have been generally announced, but
consumers are indifferent as to contracts. Sheet makers have taken a firm
stand for higher levels, which on most grades are those that were in effect
at the beginning of this quarter. Efforts are also being made to strengthen
cold-rolled strip prices, which have recently sagged. Makers of wrought
iron pipe have followed the lead of steel pipe producers in adopting simplified
discounts which eliminate the preferentials that were in effect. Net prices
are essentially unchanged.
The "Iron Age" composite prices are unchanged at 1.965c. a lb.
for
finished steel, $13.64 a gross ton for pig iron and $7.75 a gross ton for
heavy
melting scrap. A comparative table follows:
THE "IRON AGE" COMPOSITE PRICES.
Finished Steel.
Sept. 27 1932, 1.9650. a Lb.
Based on steel bars, beams, tank plates
One week ago
1.0650. wire, rails, black pipe and sheets.
One month ago
1.964.
These products make 85% of the
One year ago
2.0140. United States output.
High.
Low.
1932
1.976e. June 28
1.926c, Feb. 2
1931
2.0370. Jan. 13
1.945o. Dec. 29
1930
2 2730. Jan. 7
2.018c. Dec. 9
1929
2.3170. Apr. 2
2.2730. Oct. 29
1928
2.286e. Dec. 11
2.217c. July 17
1927
2.402e, Jan. 4
2.21213. Nov. 1
Pig Iron.
Sept. 27 1932, 513.64 a Gross Ton.
Based on average of basic iron at Valley
ago
week
513.644 furnace foundry irons at Chicago,
One
13.641 Philadelphia, Buffalo, Valley and firOne month ago
15.421 mingham.
One Year ago
High.
Low.
1932--------------------------------$14.81 Jan. 5
$13.64 Aug. 16
1931-------------------------------- 15.90 Jan. 6
15.79 Dec. 15
1930-------------------------------- 18.21 Jan. 7
15.90 Dec. 16
1929-------------------------------- 18.71 May 14
18.21 Dec. 17
18.59 Nov. 27
1928
17.04 July 24
19.71 Jan. 4
1927
17.54 Nov. 1
2245
Steel Scrap.
Sept. 27 1932, $7.75 a Gross Ton.
Based on heavy melting steel quoOne week ago
$7.75 tations at Pittsburgh. Philadelphia
One month ago
7.42 and Chicago.
One year ago
9.00
High.
Low.
1932
$8.50 Jan. 12
$6.42 July 5
1931
11.33 Jan. 6
7.62 Dec. 29
1930
15.00 Feb. 18
11.25 Dec. 9
1929
17.58 Jan. 29
14.08 Dec. 3
1928
16.50 Dec. 31
13.08 July 2
1927
15.25 Jan. 11
13.08 Nov.22
"Steel" of Cleveland, in its summary of the iron and steel
markets, on Sept. 26 stated:
Shaking off the mild reaction of a week ago, the iron and steel industry
has rallied, the most conclusive evidence yet of active market strength,
and has resumed its forward march in production.
Up two points to 17%, steel production in the week ended Sept. 24 was
the highest since late June. While Youngstown mills were expanding
three points, eastern Pennsylvania two and Pittsburgh one, other districts
were holding their own.
If tentative schedules for this week are followed, a further gain in operations is assured. It now appears reasonably certain that the September
daily average steel rate will exceed August. and probably also July.
Even more encouraging to producers is the fact that an expansion in
the number of individual orders has cut across practically every district
and product. Between Sept. 20 and 23 many producers passed their
August total of bookings, largely because of numerous small commitments.
Considering that August was so poor, this does not connote a noteworthy
improvement in tonnage, but it is taken to indicate a wider participation
in the market. There is evident not only a necessity for a little more steel.
but also a widespread desire by consumers to put the strnegth of their requirementa behind the apparent upward movement in general business.
To no small extent has the more stable price situation bred confidence.
Many consumers are seeking protection well into 1933, typical being the
effort of two large automotive buyers of bolts and nuts in attempting to .
cover for the first half. The new $5 forging quality extra has stood the
test of 400 tons in the past week. Wrought pipe has been advanced several
dollars a ton. Irregularities persist, especially in some flat rolled lines.
but mills increasingly are less inclined to make concessions.
This betterment in the steel situation, however, still leaves this branch
of the industry.in the wake of the raw materials, as the latter also have
made gains. American Radiator & Standard Sanitary Corp., usually
regarded as a close buyer, has covered on 50.000 tons of pig iron through
the first half. All pig iron markets report larger bookings, with sales of
foreign iron in New England totaling 6.000 tons.
With few exceptions, steel producers appear avid for scrap and offerings
are snapped up. The United States Steel Corp., which a few weeks ago
bought 50,000 tons for its Pittsburgh and Youngstown mills, has closed
on 20.000 tons for Lorain,0. A Buffalo mill has committed for 5,000 tons.
Prices, however, are not rising and appear likely to stand until actual consumption expands commensurately with the recent bulge In the market.
Only in connection with projects publicly financed do steel requirements
attain tonnage proportions. Quickening the structural industry are army
and navy programs, involving $12,500,000. Structural orders last week.
at 7,729 tons, were below the 1932 weekly average, but an offset is the
large volume nearing the award stage. Placement of 2,400 tons for an
auditorium at St. Louis lifts reinforcing concrete bar bookings to 8.317
tons, highest for any week this year.
A Federal loan will release 10.000 to 30,000 tons of steel for 1,285 Pennsylvania RR. freight cars. An Eastern road contemplates buying 100
automobile cars. Chicago Great Western is inquiring for 25 caboose underframes. A slight pickup in steel shipments to automobile manufacturers
is noted.
The favorable balance in iron and steel foreign trade almost disappeared
In August, when imports rose 5.618 tons to 23,623 tons and exports decllned 19,603 tons to 32.955 tons.
"Steel's" composites are unchanged this week, iron and steel at $29.32.
finished steel at $47.50, and scrap at $7.12.
Steel ingot production for the week ended Monday (Sept.
26) showed an increase of nearly 23-%, with U. S. Steel
recording a gain of almost 33.%, while leading independent
companies are credited with an expansion of between 13%
and 2%, reports the "Wall Street Journal" of Sept. 27:
The gains reflected resumption of activities on a higher scale
in some of the plants of the Steel corporation, as well as
larger production by several of the leading independents.
The "Journal" further states:
The average for the industry is estimated at 17%% of theoretical capacity.
compared with a shade above 15% in the two preceding weeks. U. S.
Steel is placed at 175i%,against a little over 14% in the previous week and
14% two weeks ago. Leading indepednents also are at 173%, compared
w th a fraction under 16% in the week before and about 16% two weeks ago.
In the corresponding week a year ago there were reductions of about 1%
in the output, with the industry at 28%-U. S. Steel under 31% and
independents at 27%. For the 1931 week the average was off fractionally
at 80%, with U. S. Steel down nearly 1% at 65% and independents fractionally lower at 56%. In the like 1929 week the industry was at about
85%, a gain of nearly 3%, with U. S. Steel at 89%. up almost 4%, and
independents at 81%, an increase of 2%. For the like week of 1928 the
average rose fractionally to 85%. U. S. Steel showing a gain of 1%. while
independents remained unchanged at a little under 85%•
Bituminous Coal Output During Week Ended Sept. 17
1932 Highest Since Late in March-Anthracite
Production Also Increased-Figures for August
Exceed Those of Preceding Month, but Continue
Below Corresponding Period Last Year.
According to the United States Bureau of Mines, Department of Commerce, a total of 6,100,000 net tons of
bituminous coal and 884,000 tons of anthracite were produced during the week ended Sept. 17 1932, compared
with 5,304,000 tons of bituminous coal and 633,000 tons
of anthracite during the preceding week and 7,244,000 tons
of bituminous coal and 894,000 tons of anthracite during
the same perio I in 1931.
Oct. 1
Financial Chronicle
2246
During the month of August estimates show that production amounted to 22,489,000 net tons of bituminous
coal and 3,645,000 tons of anthracite as against 17,857,000
tons of bituminous coal and 3,021,000 tons of anthracite
during the month of July 1932 and 30,534,000 tons of
bituminous coal and 4,314,000 tons of anthracite during
August 1931.
During the calender year to Sept. 17 1932 there were
produced 198,799,000 net tons of bituminous coal and 3'4,620,000 tons of anthracite, as against 268,727,000 tons of
bituminous coal and 42,487,000 tons of anthracite during
the calendar year to Sept. 19 1931. The Bureau, in its
statement, reports as follow,:
Production of bituminous coal during the week ended Sept. 17 1932 Is
estimated at 6,100.000 net tons, the highest figure recorded since late in
March. The daily rate of output showed a gain of 1.6% over that for
the holiday week preceding.
Anthracite production in Pennsylvania during the week of Sept. 17
is estimated at 884.000 net tons. The average daily rate was 16.5%
higher than that for the five active days in the preceding week.
The total production of beehive coke is estimated at 10.007 net tons
for the week of Sept. 17. This compares with 18,100 tons produced
during the corresponding week of 1931.
ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
COKE (NET TONS).
Calendar Year to Dale.
Week Ende
Sept. 17 Sept. 10 &pt. 19
1932.6
1931.
1932.c
1932.
1929.
1931.
Bitum. coal-a
Weekly total 6,100,000 5.304.000 7,244,000 198,799.000 268.727,000 369.714,000
902,000 1,218,000 1,675,000
Daily aver_ _ 1,017.000 1,001,000 1,207.000
Pa. anthra.-b
Weekly total 884,000 633,000 894,000 32,620,000 42,487.000 49,566.000
226,800
194,400
149,300
Daily aver_ _ 147,300 126,600 149,000
Beehive coke954.000 4,953.600
504,800
18,100
8,600
10,007
Weekly tots
22 213
.4.278
2.264
3.017
1.433
1.668
Daily aver__
a Includes lignite, coal made into coke, local sales, and colliery fuel. b Includes
Sullivan County, washery and dredge coal, local sales, and colliery fuel. Anthracite figuree for 1931 revised to agree with result of final annual canvass of mines.
c Subject to revision. d Revised.
ESTIMATED PRODUCTION OF COAL BY STATES (NET TONS000 OMITTED).a
State.
Monthly Output.
Week
Aug.
July
Ended Aug.
Sept.10 1932. 1932. 1931.
CUWJOMMNONOMOIMMISQNN
gt,
C.1,
...00NM.OW ,
00,
1...4..0.0r/gwerWN
.0 .C.ODNMC.1...
640
900
271
425
3,400
929
204
374
2,859
640
140
8
151
100
101
1,835
7,573
348
90
173
834
123
6,830
1,854
368
4
Cal. Year to Aug. 31.
1932.
1931.
1929.
5.270
1,025
3.033
18,467
6.962
2.336
3.267
15.501
5,588
887
218
1,039
745
946
7,264
47,532
1,866
424
1,596
5,068
910
39,047
13,352
2,422
171
8,178
1,664
3.745
28.645
8,809
2.092
3,167
21.154
5,304
1,282
231
1,285
990
871
14.214
86,787
2.843
544
1,714
6.412
1.079
49.260
16.790
3,019
42
11,998
3,109
.5.776
37,643
11.670
2.562
4.337
29.809
9,144
1,720
518
2.052
1,695
922
14,594
94.715
3,526
751
3.047
8.296
1,633
66,323
23.960
3,994
127
Alabama
Arkansas and Oklahoma_
Colorado
Illinois
Indiana
Iowa
Kansas and Missouri_ __ _
Kentucky-Eastern
Western
Maryland
Michigan
Montana
New Mexico
North Dakota
Ohio
Pennsylvania (bitum.)
Tennessee
Texas
Utah_
Virginia
Washington
W. Virginia-Southern b
Northern_ c
Wyoming
Otter States_d
144
27
98
465
173
49
88
558
165
20
2
31
22
18
223
1,240
53
12
55
172
23
1,271
315
78
2
Total bituminous coal_
Pennsylvania anthracite_
5,304 22,489 17,857 30,534 184,934 250.121 343.921
633 3,645 3,021 4,314 30,648 39.810 48.062
90
4
.i.
44
270
1,720
710
225
362
2,364
814
80
10
95
85
60
920
5.778
214
54
158
653
85
5,393
1,414
280
15
1
1
Total all coal
5.937 26,134 20,878 34.848 215,582 289.931 389.983
a Figures for 1929 only are final. bloc udes operations on the N. ex W., C. er 0.,
Virginian, K. & M., and B. C dc G. c Rest of State. including Panhandle.
d This group Is not strictly comparable in the several years.
Conference for Lower Wage Scales in Anthracite
Industry Adjourned Until Oct. 3.
The conference of anthracite operators and representatives
of the United Mine Workers of America being held at the
Anthracite Institute, on the operators' request for a reduction in the wage scales of the industry, was resumed on
Sept. 23. A brief statement issued after the meeting said
that "both parties have completed the initial presentation
of their respective points of view. Recess has, therefore,
been taken until Oct. 3 when the conference will reconvene
at 2 p. m. at the same place."
In our issues of Sept. 24, page 2067; Sept. 17, page 1907,
and Sept. 10, page 1736, items regarding previous meetings
appeared.
Report on Foundry Operations in Philadelphia Federal
Reserve District by University of PennsylvaniaIncrease of 23% from July to August Noted in
Production of Gray and Malleable Iron Castings.
In its report of foundry operations in the Philadelphia
Federal Reserve District, the Industrial Research Department of the University of Pennsylvania states that "the
production of gray and malleable iron castings during August
in 32 foundries reporting to this Department was 23% more
than in July. Most of the increase was in gray iron castings
1932
for jobbing work which was 34% larger than last month."
The Research Department also said as follows:
Other gray iron castings and the malleable iron castings had an increase
of only 5.5%. On the other hand, the activity in the steel foundries, as
measured by their output, declined 5%. Shipments of both Mow and steel
castings increased. In the iron foundries this represented the shipments
of the increased production, but in the steel plants it was caused by the
carrying over of castings manufactured in June. The average price per
pound of both iron and steel castings was less than a month ago and a
year ago. Unfilled orders in the iron foundries at the end of August were
4% more in tonnage than at the beginning of the month, but In the steel
foundries the volume of unfilled orders was nearly 23% less than a month
ago.
IRON FOUNDRIES.
No. of
Firms
Reporting.
32
32
31
4
31
19
28
27
27
August
1932.
Capacity, short tons
12,572
Production, short tons
1,606
Gray iron. short tons
1.443
Jobbing, short tons
1,085
For further manufacture,short tons
358
Malleable iron, short tons
163
Shipments, short tow
1,752
Value
5178.903
Unfilled orders;short tons
478
Value
574,517
Raw stock-Pig iron, short tons
2,014
Scrap, short tons
1.931
Coke
517
Per Cent Per Cent
Change
Change
from
from
July 1932. Aug. 1931.
0.0
+23.3
+25.8
+34.3
+5.6
+5.5
+25.2
+21.0
+3.9
+11.6
-5.2
-1-5,4
0.0
-34.6
-31.4
-36.4
-9.9
-53.8
-27.9
-39.6
-30.6
-22.1
-29.0
-9.3
--33.8
The output of gray iron castings in 31 foundries during August was
26% more than In the previous month, but in spite of this Increase the total
tonnage produced was less than in June. By far the larger part of the
Increase was in the production of castings for jobbing work which exceeded
the total .for last month by 34%, while the output of castings used for
further manufacture within the plant increased less than 6%.
It is uncertain how much of this increased activity is due to seasonal
factors. In the corresponding period of 1930 and 1931 there were decreases
of 5 and 12% respectively, but in the years from 1926 to 1929 there were
increases ranging from 4 to 16%. The percentage increase this year may
be slightly misleading since it is much larger than in the other years although
the actual tonnage represented by the Increase is less than in 1927. 1928
or 1929. The most significant fact in the increase is that it was widely
distributed throughout the trade, with 16 of the 22 foundries which were
operating sharing in the greater activity. The production for the first
eight months of this year is less than that of the first four months of last year.
Shipments of iron castings during August were also larger than in July,
the increases being 25% in tonnage and 21% in value. The average price
per pound was less than a month ago and a year ago. Part of this reduction in price from last month was caused by an Increased production of the
heavier type of castings in several foundries.
At the end of August the tonnage of orders unfilled was 4% larger than
at the beginning of the month, with an Inc ease in value of 12%. It is
an encouraging sign when unfilled orders are able to increase even slightly
in the face of large increases in production and shipments.
Stocks of scrap at the end of August were practically the same as a
month ago, those of pig Iron were less, while the tonnage of coke on hand
increased 5%. Compared with the inventories of a year ago, raw stocks
on hand showed decreases.
PRICES PER POUND OF SHIPMENTS.
Aug. 1932. July 1932. Aug. 1931.
Iron castings
Steel castings
$.0511
.0612
1.0528
.0756
$.0609
.0743
Kalleable Iron Foundries.
The production of malleable Iron castings In four foundries during August
was 5.5% more than In July. The tonnage of output, however, was less
than in any other month since the study was started except July.
STEEL FOUNDRIES.
No. of
Firms
Reporting.
August
1932.
Per Cent Per Cent
Change
Change
from
from
July 1932. Aug. 1931,
7
7
8.030
0.0
Capacity, short tons
0.0
Production, short tons
618
--5.1
--62.4
580
Jobbing, short tons
-3.7
For further manufacture,short tons..
38
-22.4
-55,9
7
799
Shipments, short tons
+63.4
-43.8
897,814
Value
+32.2
-53,7
6
1,233
Unfilled orders, short tons
--22.6
--10.9
5129,402
Value
-29.1
--16.4
82
5
Raw stock-Pig Iron, short tons
-34.7
-61.9
5
Scrap, short tons
2,901
-10.2
-41.0
5
Coke, short tons
203
-0.7
-35.2
The tonnage of steel castings produced in seven foundries in August was
5% less than In the previous month and over 60% less than in the same
month of last year. Four foundries, however, reported increased activity.
Although the output of the steel foundries in this area has been at a very
low level, it has tended to be above the average for the country as a whole
as indicated by data compiled by the Department of Commerce.
Shipments of steel Castings increased 63% in tonnage and 32% in value.
This large increase was caused by the clearing out of inventories of finished
goods. For the last several months there has been a tendency for production to exceed shipments. This condition was corrected In August.
Unfilled orders on hand at the end of the month were 23% less In tonnage
and 29% less In value than at the close of the previous month. The
decreases from August of last year were 11% in tonnage and 16% In value.
Stocks of pig iron and scrap on hand at the end of August were less than
a month ago, but the amount of coke In stock was practically the same.
All stocks on hand were less than those of a year ago.
Notice of Reduction of 17% in Wages of Job Printers
in New York Issued by Employers-Priority Rules
to Be Abolished.
Notice of a 17% wage cut, beginning Oct. 16, and the
abolition of priority rules on Oct. 1, has been posted in book
and job offices by the Printers' League Section of the New
York Employing Printers' Association. The action was
prompted by what the employers consider an unreasonable
delay in settling the terms of arbitration for printers in the
Financial Chronicle
Volume 135
book and job trade, according to the New York "Times" of
Sept. 22. From that paper we also quote:
The first batch of notices in 55 shops was posted on Tuesday [Sept. 20),
and additional notices were put up yesterday, it was learned.
The summary action by the employers, who have been in negotiation
for a new contract for several weeks, took by surprise their employees, who
are members of Typographical Union No. 6, as a joint conference had been
held last Friday. At the offices of the union the action was declared to
be "foolish" and one that would "Inflame the members."
More important than the announced wage reduction was said to be the
decision to abolish priority, the custom of laying off men in order of
seniority of service. This system was enacted by the International Typographical Union as part of its Constitution and By-Laws more than 30
years ago, and was accepted about eight years ago In the commercial
printing shops in New York City.
The notice of terhis to be put into effect by the employing printers
included also the inauguration of the five-day week, the sixth day to be
optional.
The wage reduction, as announced, is to be from the present basic scale
of $1.36 an hour to $L123 an hour.
Notice Posted by Employers.
The notice is as follows:
NOTICE.
It is the desire of this firm to operate a union composing room. No
contract being in effect after Oct. 1 1932 between the Printers' League and
Typographical Union No. 6, and pending the settlement of the terms of a
new contract through conciliation or arbitration, employment in the composing roam on and after Oct. 1 1932 will be subject to the following
conditions:
Basic Wage.
Old contract hour wage rate to remain in effect until Oct. 16 1932.
On and after that date the basic wage rate of 91.12% per hour to be
effective unless an arbitration board of three men to settle the wage rate
has been set up and is operative. This board to consist of two representatives
of the union and two representatives of the league, which board shall
select the fifth member. If the fifth member has not been selected by
Oct. 12 he shall be appointed by the presiding judge of the Appellate
Division of the Supreme Court for the First Department.
Hours.
Five days per week (six-day operation optional).
2247
Priori)
On and after Oct. 1 this office will Ls.. .....ognize priority. Foreman to
be the sole judge of competency and composing-room employees to be
employed, laid off and discharged by the foreman on basis of his judgment
of competency to perform work to be done.
All other conditions of the old contract not in conflict with the above
to remain in effect until the new agreement is reached.
Union 01ficer Sees Trouble Added.
John J. Fahey, chief organizer for the union, commented as follows:
"The action of the employers is foolish and will inflame the men and
make a settlement more difficult to negotiate. We were proceeding peacefully toward effecting a settlement until this overt act by the employers.
"We have been doing our best to settle on a new scale of wages effective
Sept. 30, when the present agreement expires. The employers have insisted
that before we could proceed we would have to drop the system of priority.
This arrangement is part of our International Union law and we cannot
consent to drop it because only the International Union has that power.
"Our suggestion has been to settle the wage scale first and then to discuss
priority, but the employers have been insisting that priority be dropped
before a discussion of the wage scales."
The employers have been seeking a wage reduction from the compositors
since last spring, when most of the printing unions agreed to a temporary
reduction of about 7%. On Aug. 29 the union members agreed to arbitrate
the wage scale, and soon afterward joint conferences were held to arrange
for arbitration. These conferences appear to have broken down with the
announcement of the new scale by the employers.
From the New York "Sun" of last night (Sept. 23) we take
the following:
Hope that the impending fight between the Printers League section of
the New York Employing Printers Association may be averted was held
out today in view of the probable visit here next week of Charles P. Howard,
president of the International Typographical Union.
Mr. Howard, it is expected, will lend his services towards working out a
solution of a controversy now headed towards what the employers wfil
regard as a strike and the employees as a lockout.
MM
The employers are said to be continuing their efforts-to recruit men to
take the places of the union printers in case the latter refuse -to accept the
17% wage cut which goes into effect October 18. More irksome to the men
is the proposed abolition of priority rules, which the employers annotmca
as effective October 1.
Current Events and Discussions
The Week w*th the Federal Reserve Banks.
Reserve bank credit
outstanding during the week ended Sept. 28, as reported by
the Federal Reserve banks, was $2,251,000,000, a decrease of
$18,000,000 compared with preceding week and an increase
of $759,000,000 compared with the corresponding week in
1931. After noting these facts, the Federal Reserve Board
proceeds as follows:
The daily average volume of Federal
On Sept. 28 total Reserve bank credit amounted to $2,241,coome. a
decrease of $18,000,000 for the week. This decrease corresponds with a
decrease of $37,000,000 in money in circulation and increases of $20,000.000
In monetary gold stock and $22,000.000 in Treasury currency, adjusted.
offset In part by increases of $58,000.000 in member bank reserve balances
and $2.000.000 in unexpended capital funds, non-member deposits, &c.
Holdings of discounted bills decreased $6.000.000 each at the Federal
Reserve banks of New York and Atlanta. and $19.000.000 at all Federal
Reserve banks. The System's holdings of bills bought in open market were
practically unchanged, while holdings of United States Treasury notes decreased $5,000,000 and those of Treasury certificates and bills increased
$7,000,000.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
in the condition statement,such as monetary gold stocks and
money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition of the
different items, was published in the May 31 1930 issue of
the "Chronicle" on page 3797.
The statement in full for the week ended Sept. 28, in
comparison with the preceding week and with the corresponding date last year, will be found on subsequent pages,
namely, pages 2295 and 2296.
Changes in the amount of Reserve bank credit outstanding and in related items during the week and the year ending Sept. 28 1932 were as follows:
Increase 1-1-) or Decrease (—)
Slue
s
$
$
Sept. 28 1932. Sept. 211932. Sept. 30 1931.
Bills discounted
19.000,000
340,000.000
+12.000.000
Bills bought
34,000.000
—435.000.000
U. S. Government securities
1,854.000,000 +2,000.000 +1.112.000.000
Other Reserve Bank credit
14,000,000 —1,000,000
—25.000,000
TOTAL RES'VE BANK CREDIT-2,241.000.000 —18,000,000 +663.000.000
Monetary gold stock
4 185.000.000 +20.000.000 —556.000.000
Treasury currency adjusted
1.835,000,000 +22.000,000
+61.000.000
Money In circulation
5 605.000.000 —37.000.000 +359.000.000
Member bank reserve balance('
2 269,000.000 +58.000,000
—95,000.000
Unexpended capital funds, non-member deposits, Sr
387,000,000 +2,000.000
—96.000.000
Returns
Member Banks in New York City and
Chicago—Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in New York City, as well as those in
Chicago, on Thursday, simultaneously with the figures for
the Reserve banks themselves and for the same week, instead
of waiting until the following Monday, before which time
the statistics covering the entire body of reporting member
banks in the different cities included cannot be got ready.
Below is the statement for the New York City member
banks and that for the Chicago member banks, for the
current week, as thus issued in advance of the full statement
of the member banks, which latter will not be available until
the coming Monday. The New York City statement, of
course, also includes the brokers' loans of reporting member
banks. The grand aggregate of brokers' loans the present
week records an increase of $17,000,000, the total of these
loans on Sept. 28 1932 standing at $425,000,000, as compared
with $331,000,000 on July 27 1932, the low record for all
time since these loan3 have been first compiled in 1917.
Loans "for own account" increased from $383,000,000 to
$400,000,000, while loans "for account of out-of-town
banks" remain unchanged at $20,000,000, and loans "for
account of others" at $5,000,000.
of
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
Sept.211932. &pt. 211932. Sept. 301931.
Loans and investments—total
6,801.000.000 6,796.000,000 7,924,000.000
Loans—total
3,479.000,000 3.468,000.000 5,059.000.000
1.683.000.000 1.662.000,000 2,677.000.000
1.796.000.000 1,806.000.000 2.382,000.000
3,822.000,000 3,328,000.000 3.865.000.000
U.S. Government securities
2,321,000.000 2,344.000.000 1.745.000.000
Other securities
1,001.000.000 984.000.000 1,120.000.000
Reserve with Federal Reserve Bank
961.000.000 924.000.000 880.000.000
Cash In vaiat
38.000,000
36.000.000
62.000.000
Net demand deposits
5,296.000.000
5.218.000.000 6.003,C00.000
Time deposits
829,000,000 824.000.000 1,073.000.000
Government deposits
273.000.000 273.000.000 115,000,000
Due from banks
73,000.000
70.000.000
95.000.000
Due to banks
1,270,000.000 1.236.000w00 1,204.000.000
Borrowings from Federal Reserve Bank
2,000,000
Loans on secur. to brokers & dealers;
For own account_
400,000,000
383,000.000
948.000.000
For account of out-of-town banks__
20.000.000
20.000.000
87,000.000
For account of others
5,000,000
5.000.000 137.000.000
Total
425.000,000 408.000.000 1,172.000.000
On demand
292,000.000 282.000,000 835,000.000
On time
133,000,000 126,000,000 337.000.000
On securities
All other
Investments—totaL.
Financial Chronicle
Loans and Investments-total
1,214,000,000 1,208,000,000 1,711.000,000
767,000,000
773.000,000 1,168.000,000
445,000,000
322.000,000
448,000,000
325,000.000
673.000,000
495,000,000
447.000,000
435,000,000
543,000,000
Loans-total
Oct. 1 1932
outbreak of the World War, that is, on June 30 1914, the
total was only $3,459,434,174. The following is the full
statement:
o
On securities
All other
Investments-total
-,.o.
211,000,000
284,000,000
Borrowings from Federal Reserve Bank-
4,000,000
219,000,000
283,000,000
176.000,000
286,000,000
4,000,000
1,000,000
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 Thursday,
simultaneously with the figures for the Reserve banks themselves and covering the same week, instead of being held
until the following Monday, befor, which time the statistics
covering the entire body of reporting member banks in 101
cities cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with the close of business on Sept. 21:
'
s condition statement of weekly reporting
The Federal Reserve Board
member banks In leading cities on Sept. 21 shows an Increase for the week of
$422,000,000 in holdings of United States Government securities, partly
offset by decreases of $11,000,000 in other securities and $37,000,000 in
loans, also increases of $456.000,000 in government deposits and $17,000,000
in time deposits, and decreases of $132,000,000 in net demand deposits,
$35.000,000 in borrowings of Federal Reserve banks and $43,000.000 In
reserve balances with Federal Reserve banks.
Loans on securities declined $26,000,000 at reporting member banks In
the New
York district and $36,000,000 at all reporting
member banks.
" loans show practically no change for the week, an increase of
"
All other
$7,000.000 in the Boston district being offset by decreases in other districts.
Substantial increases In United States Government security holdings in
'
s recent financial operations are
connection with the Government
most
Federal
Reserve
$14.000,000 in
districts.
the New
York
Holdings
of
other
shown
securities
for
declined
district and $11,000,000 at all reporting
member banks.
Borrowings of weekly reporting
member banks from
Federal
Reserve
Per
Capita.
Amount.
noon
0.001co000
000V..00
0
t0
6 46 t-: r.: 66
6
Came
st, 06 •cs
Noon.o .a.
0
.
co o
8
3
:r., a,
6
0
0-
o
oo
.1. 1
GO
4 'q '' .`4'
m co o to
CO
g
V 0 Co 00
CA Ca CO 00
t- Cc
.
N
oncn
•-7 66 t.:
o n 00
n
CO
0
CO
CO GO 0 0
0
0
N
0
6
.,)
6
6
N
0CI
0 00001000
o Cc co n 0
.
0
0 n ..0 GO V cO Co
0
00
C.
N
co0C100
...•
c1
,•E4
n
n 0 0 CO
4
'...5 6:5 6
.
GO cc) 0
1.9 CI 0 0- Co
66 46 ,,i g .i
N n Co 0 n
co
01 CO 0 CO
.
n m
.6 cot- .-i 6 -'e 6 oi co
o m m SD0 co .a. .t.
to
o'.0
- .
.
-.
m
0
N
.
CO 0
CO
n
m.
co
o
.
r
0 oo co
Ts 005 n
..ti
CO
Co
0.
0
.1.
01
.
1;
,1
t1
'4 i
,
GO
0
V
N 0 CC CO
,-; ,
1:0: 0;
00 N co
CO
.
01 1--
1
6
0.
co
cO
co
Co
A
CO
m
•-• c0 V Co
.
V
co
.00c.3 .17 ..7 -7 N:
c‘i
o
...;
n0.010-0
00
1., ,
Oi
a
6
4
ci
.6
..1;
C. .
.
..
V
'il
Total.
828,000,000 1,127,000.000
324,000,000 499,000,000
32,000,000
12,000,000
In Circulation.f
853,000,000
326,000.000
32.000,000
0 0 0? CI CO C:J 0
0
mm
01
CO
I
191,000,000
16,000,000
CO CO CI GO
01
40 CO 0
All
Other
Money.
209.000,000
17,000,000
Held for
Federal
Reserve
Ranks
and
Agents.
229.000,000
17,000,000
Anti. Ileld in Res're Against
Trust Against United Stales
Notes
Cold and Silver
Certificates (& (and Treasury
Treas'y Notes
Notes
of 1890).
of 1890).
Due from banks
Due to banks
314.000,000
229,000,000
MONEY HELD IN THE TREASURY.
_
240,000,000
195,000,000
CIRCULATION STATEMENT OF UNITED STATES MONEY—AUG. 31 1932.
Reserve with Federal Reserve Bank_
Cash In vault
r
Net demand deposits
Time deposits
Government deposits
253,000,000
194,000,000
MONEY OUTSIDE OF THE TREASURY.
,...,
U. S. Government securities
Other securities
CO
GO
.9
CO
CO
GO
GI
0
1.9 oc
N
0
CI
CO
,
CO
C
n
N
CO
00
0
00
00
0
.9.
0
0
,
0
.
<6 6 ci ei 66
.6 .6 .6 .6 .6 o
00
N
CO
01
,-,
0
6
op
6
n
0P C9 N 0 0
CO
.
n n 0. .o.
,
I Ct el 0 00 0
ni
o
csi 6 ..7 .4 oi ,i
0
DO
6
co
.000,00.0.
CO DI
.
0 N V
.
co V 0 -'e
CO 6 .47 ei .. r4
0.0.01n0
CD CO 0 CO
n
6 .1; 01 GO .1
.8 ;1
0:
..
0 3
....
00.000;1
0 Co A 0 .0
CD.
. .
VI
co
ocC,OCOVN
00
n000.0
CO
-,n "sea cc?
14
cl
GO
CO
0...
.
.
0. 0 CO ." 0 00
00
§NN.0 .0.10
.
00
00
- - c6 .-occr
7 i i
0 00 co 0 n 6
o
6
0.0., ci
g
'5>
Fl 6
0§
I 6
01 CO
.4
o0
1932, follows:
8 <2"
IQ.
'
;
G
.
Increase (-I-) or Decrease (-)
Since
Sept. 21 1932. Sept. 14 1932. Sept. 23 1931.
-37,000,000 -3,499,000,000
4,511,000,000
6,218,000,000
-36,000,000 -1,850,000,000
-1,000,000 -1,649,000,000
si 0 00 s,0 0
C`I V u'D 41 0, ,
t er
0
Investments-total
U. S. Government securities_ _
Other securities
Reserve with F. R. banks
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
banks
Due to
Borrowings from F. R. banks
8,201,000,000
+411,000,000
+357.000,000
4,981,000,000
3.220.000,000
+422,000,000
-11,000,000
+784,000.000
-427,000,000
1,767,000,000
198,000,000
-43,000,000
-19,000,000
+31,000,000
-61,000.000
11,100,000,000
5,627,000,000
603,000,000
-132,000.000 -1,785,000.000
+17,000,000 -1,210,000,000
+456,000,000 +199,000,000
1,431,000,000
2,962,000,000
-31,000,000
-35,000,000
+184,000,000
+55,000,000
113,000,000
-35.000,000
--33.000.000
'.
;
.
.
.. 2
C1,
&C'
I ..1
Cl
'
r
O' el 2
n '
'
4
5
6
-
0;
'
jt
;e
9
i t
i'
Zi
'
0 00 V. A 0 CO
NOD
CO.
3 8'
%,'
00.010N00
n 01 OD GO CO 0
o CO •
t. Cl CI o.
.
0
0V1 C91,01
-
2
1:1
On securities
All other
oi wi ..17 666
00 ..1. 000 0 V
G.
;
A 01 6 ci 6 ci
-.
0
0
0 CO V 0 00
6
+374,000,000 -3.142,000,000
N co n Co n 0
6,
o
‘
j
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ending
10,729.000,000
CO CO 00 00 0§
88888
0 00 0>
Oi
Francisco and $9,000,000 at Atlanta.
Loans and investments-total_ ___18,930,000.000
00 00 co
0 N 00
0O GO 01
.
00 0
01
.00 CO
co
00
0
..
. 00
0
0
00
co
GO
0
week being decreases of $15,000,000 at the Federal Reserve Bank of San
Loans-total
01 0
.
A 0 to
CO -a--
0
.6
.
t-
banks aggregated $113,000,000 on Sept. 21, the principal changes for the
Sept. 21
148.367,986 7.571.349,114 1,845,086,850 5,726,262.264 45.85 124.885,000
98.027.598 7.251.863.756 2,199,836,647 5,052.027.109 *40.68 '124195000
352.850.336 6,761.430.672 1.063.216,060 5.698.214,612 53.21 107,096,005
117.350,216 5,126.267.436 953,321,522 4.172,945.914 40.23 103.716.000
3,459,434,174 34.93 99.027.000
188,390,925 3,459,434.174
816,266,721 16.92 48,231,000
90,817.762 816,266.721
Chicago.
Sept. 28 1932. Sept. 21 1932. Sept. 30 1931.
al
74 ''q
o0
-2,gii 0, 2 iD., °e2i .,3 !,
14 g '..0
2
;
v -6.07..165
• g • •g
.1 4E -• - 1''Z,
i
54Z
(7
f.., cn EL F
g ,'
•
ra
F 4; .4
.La .. ,...
.3 i m 3 3 3 36 a,.' • .. a,
. El '-.-5 6 r., „..9 r; g;
*
8 0
.-i ...104 ,-,..,
F U
• Revised figures.
a Does not include gold bullion or foreign coin other than that
held by the Treasury, Federal Reserve banks, and Federal Reserve agents. Gold held by Federal
Reserve banks under earmark for foreign account Is excluded, and gold held abroad
for Federal Reserve banks is Included.
S These amounts are not Included In the total since the money held In trust
against gold and silver certificates and Treasury notes of 1890 is Included under
gold coin and bullion and standard ether dollars, respectively.
c The amount of money held in trust against gold and silver certificates and
Treasury notes of 1890 should be deducted from this total before combining It with
total money outside of the Treasury to arrive at the stock of money in
the United
States.
Stock of Money in the Country.
The Treasury Department at Washington has issued the
customary monthly statement showing the stock of money
in the country an.1 the amount in circulation after deducting
the moneys hsld in the United States Treasury and by Federal Reserve banks and agents. It is important to note
that, beginning with the statement of Dec. 311927, several
very important changes have been made. They are as
follows: (1) The statement is dated for the end of the
month instead of for the first of the month; (2) gold held by
Federal Reserve banks under earmark for foreign account
is now excluded, and gold hold abroad for Federal Reserve
banks is now included; and (3) minor coin (nickels and
cents) has been added. On this basis the figures this time,
which are for Aug. 31 1932, show that the money in circulation at that date (including, of course, what is held in
bank vaults of member banks of the Federal Reserve System)
was $5,692,053,976, AS against $5,726,262,264 on July 31
1932 and $5,052,027,109 on Aug. 31 1931, and comparing
with $5,698,214,612 on Oct. 31 1920. Just before the
d This total includes 857,600,040 gold deposited for the redemption
of Federal
Reserve notes ($807,220 in process of redemption), 832,669,963 lawful money
deposited for the redemption of National bank notes ($14,682,477 in process of
redemption, including notes chargeable to the retirement fund), $1,350
lawful
money deposited for the retirement of additional circulation (Act of May 30 1908),
and $16,875,452 lawful money deposited as a reserve for postal savings deposits.
e Includes money held by the Cuban agency of the Federal Reserve Bank of
Atlanta.
!The money in circulation includes any paper currency held outside the continental limits of the United States.
Note.-Gold certificates are secured dollar for dollar by gold held in the
Treasury
for their redemption; silver certificates are secured dollar for dollar
by standard
silver dollars held In the Treasury for their redemption; United States
notes are
secured by a gold reserve of $156,039,088 held In the Treasury. This reserve fund
may also be used for the redemption of Treasury notes of 1890, which are also
secured dollar for dollar by standard silver dollars held In the Treasury: these notes
are being cancelled and retired on receipt.
Federal Reserve notes are obligations
of the United States and a first lien on all the assets of the issuing Federal Reserve
bank. Federal Reserve notes are secured by the deposit with Federal Reserve
agents of a like amount of gold or of gold and such discounted or purchased paper
as is eligible tinder the terms of the Federal Reserve Act, or, until March 3 1933, of
direct obligations of the United States if so authorized by a majority vote of the
Federal Reserve Board. Federal Reserve banks must maintain a gold reserve of
at least 40%, Including the gold redemption fund which must be deposited with the
United States Treasurer, against Federal Reserve notes In actual circulation.
Lawful motley has been deposited with the Treasurer of the United States for retirement of all outstanding Federal Reserve bank notes.
National bank notes are
secured by United States bonds except where lawful money lass been
deposited with
the Treasurer of the United States for their retirement.
A 5% fund Is also maintained In lawful money with the Treasurer of the United States for the redemption
of National bank notes secured by Government bonds.
Financial Chronicle
Volume 135
Serious Effect on Economic Development of Europe
Seen by Alexander Hamilton Institute with Defaults on League of Nations, Loans to Austria,
Hungary, Bulgaria and Greece—Says Defaults
May Mark End of Financial Intervention by League.
The defaults on the League of Nations' loans as to Austria,
Hungary, Bulgaria and Greece will have a serious effect on
the future economic development of Europe, according to
the "Business Conditions Weekly," issued by the Alexander
Hamilton Institute on Sept. 24. The Institute says:
Until recently, weaker nations could apply to the League for financial
assistance with some assurance that it would be forthcoming and that a
loan could be floated in the international capital markets. With several
loans of the League in default, bondholders throughout the world have lost
their confidence in such issues; and there is little likelihood that this confidence can be revived in the near future. Without the intervention of the
League it is difficult to see how the weaker and smaller countries which need
financial assistance in order to stabilize their currencies or to rehabilitate
their finances; will be in a position to obtain new foreign loans. The defaults
of the League of Nations'loans, therefore, may mark the end of the financial
intervention of the League,and unless new ways of helping weaker countries
are found, the rehabilitation and reconstruction of the post war world will
be much more difficult than the reconstruction which was carried out immediately after the war.
That further negotiations will not have the benefit of the
hope of sounder financing is indicated by the fact that in
sponsoring the loans the League took all reasonable precautions:
The loans were floated in the leading markets of the world at prices
and
at yields quite satisfactory to the borrowing countries. In many instances
one may safely state that investors bought these bonds chiefly
because they
were issued under the auspices of the League and because it was felt
that
the League would see to it that the debt service would be paid
promptly.
Although the League has endeavored by all means at its disposal to keep
the financial conditions of the countries whose loans were floated under
its
auspices in good shape, no one could have foreseen the tremendous
decline
in prices, the sharp decrease in business activity and the widespread
financial paralysis of the past two years.
We also quote as follows from the Institute's Weekly:
The economic reconstruction of Europe in the post-war years was greatly
facilitated by the financial aid rendered by the League of Nations to a
number of weak countries. It was obvious that the rehabilitation of countries exhausted by the war, such as Austria, Hungary, Bulgaria, Greece.
&c., could not obtain loans in the international capital markets on
their
own credit standing. Both economic and political conditions in
these
countries were chaotic. Foreign capital, however, was a prime
necessity
for their rehabilitation and the assistance rendered by the
League of Nations in helping them to obtain credit was therefore of Incalculable
value.
Many people have the impression that the foreign loans issued
under the
auspices of the League are guaranteed by that international
body. This.
of course, is not correct. The function of the League in the
flotation of these
loans may be briefly described as follows: A country would apply
to the
League for financial assistance. The latter, in turn, would
send a committee of investigation to the country applying for assistance and
after a
careful investigation of economic and financial conditions a plan of
tation would be presented to the Council of the League. After rehabilian agreement had been reached between the respective country and the
League of
Nations as to the conditions and terms of the loan and the necessary
laws
had been passed putting the recommendations of the Financial
Committee
of the League into effect, the bonds were issued in the international
capital
market. In some cases, as for example in Austiia and in
Hungary, the
League appointed a Commissioner-General to supervise the program
of
economic rehabilitation and to control the use of the proceeds of the
loans.
In other cases the League was satisfied to merely appoint a
trustee, or a
financial advisor to the central bank, whose main function was to
safeguard
the interest of the bondholders.
. .
The following list shows the loans issued under the auspices of the
League
of Nations:
LEAGUE OF NATIONS' LOANS.
•
Austrian 75. 1943 ("Reconstruction")
Hungary 7l4s, 1944 ("Reconstruction")
Greek 7s, 1964 ("Refugee")
Greek 68, 1968
Bulgaria 7s, 1967 ("Settlement")
Bulgaria 714s, 1968 ("Stabilization")
Estonia 7s, 1967
Danzig 75, 1945
Danzig 7s, 1947
Year Nominal Value
ofIssue.
of Issue.
1923
1924
1924
1928
1927
1928
1927
1925
1927
American
Share.
8126.000,000 825,000.000
51.000,000
7,500,000
60,000.000
1 1,000,000
37.000,000
17.000.000
16,000,000
4,500.000
25.000.000
13.000,000
7,000.000
4.000,000
7,000,000 Noriartielpa,
8,000,000 Nonarumpa.
Total
8337,000.000 882,000,000
While the League could insist on certain reforms in banking,
currency
and public finance, it had no control over the balance of payments
of the
borrowing countries and could not do anything to enable them to
procure
foreign exchange with which to pay the principal and interest on
their
external debt. Thus one finds that at the present time difficulties
have
arisen in connection with the Austrian, Hungarian, Greek and
Bulgarian
League of Nations' loans. In most of these cases the difficulty has
arisen
out of the inability of the debtor countries to provide sufficient
amounts
of foreign exchange with which to pay the external debt service.
What
steps the League will take in order to remedy the situation is as yet impossible to foretell. In the meantime, upon the Initiative of the Governor
of
the Bank of England, a committee has been formed in Great
Britain to
protect the interests of holders of League of Nations' loans.
The defaults on the League loans will have a serious effect on the future
economic development of EUrope.
League of Nations Reported in Financial Straits—
May Seek Loans for Payment of Officials.
According to Associated Press advices from Geneva,
Sept. 28 to the New York "Herald Tribune" the League of
Nations is in bad straits financially and may have to resort
to a loan or stop paying its officials, it was revealed on that
day when the proceedings of the recent secret council session
were published. The account went on to say:
2249
Reporting that only 64% of the dues for 1932 had been received up to
Sept. 19, Carl Hambro, of Norway, a member of the supervisory commission, asked that the true situation be disclosed to the Assembly and
to all League members.
"If it should be impossible for the Assembly and the Secretary-General
to induce States that have not paid to send their dues this year, the League
will be in a very difficult financial position at the end of the year," he
said.
"It may be faced with the fact that in the first two months of next year
it will either have to obtain a loan or be incapable of paying its officials.
"No additional work can be undertaken and no conference summoned if
the members of the Council and Assembly are unaware of the financial
position."
Nevertheless the League's Treasurer took a hopeful view, expressing the
opinion the budget would be balanced with the help of a13% saying effected
on the disarmament conference appropriation.
A number of Latin-American nations are in arrears. Germany is the only
large country which is delinquent.
Disarmament Conference Bureau at Geneva Adjourns
to October 10—Bureau then to Decide Whether
to Call Full Conference to Act on German Demands
—French Unable to Understand Why Premier
Herriot Links United States to New League Covenant Plan.
The Disarmament Conference's Bureau adjourned its deliberations at Geneva on Sept. 26 until Oct. 10, when it will
take up Arthur Henderson's proposal for the calling of the
general commission to discuss Germany's demand for arms
equality. A Geneva cablegram,' Sept. 26, to the New York
"Times," indicating this, also had the following to say:
Premier Herriot of France, delayed by a storm, motored into Geneva
to-night in time to have only a half hour talk with Sir John Simon before
the British Foreign Minister caught the train for London to attend a
critical Cabinet meeting. In such circumstances not much was left of the
hopes built around this conversation, especially since many do not expect
Sir John to keep the Foreign Office.
It appears Sir John told M. Herriot of his futile talk with Foreign
Minister von Neurath and M. Herriot took the view, which is very general
here, that further effort to get Germany to return to the disarmament
conference by the formula route is useless for the present. The talk then
turned partly on the tactics the others should agree to follow in this case:
Should they work out a general disarmament treaty and then try to
negotiate it as a whole with Germany, or should they try to negotiate with
Germany each important article as it came up, or should they resort to
safeguard clauses in regard to the absentee?
Mr. Herriot told Sir John he plans to pass to-morrow investigating the
situation in talks with the Italians, French and others, and is still uncertain whether to speak publicly here. He professed surprise when Sir John
reported how the Germans were angered by yesterday's speech, pointing
out he was also being attacked by French Nationalists.
Arthur Henderson tried to outflank the British and French in the disarmament bureau to-day. On Friday they blocked discussion of the German equality problem. To-day Mr. Henderson proposed that the Bureau
convoke the general commission, which they had agreed on Friday would
be competent to handle this issue. They ended by adjourning the Bureau
till Oct. 10, when it will take up this question.
Since one month's notice will be required for convoking the Commission,
if it is convoked, it will have to meet in November, when the special League
Assembly takes up the Manchurian question. While the Bureau is adjourned
its committee work will go on.
Mr. Henderson, who is returning to London Wednesday, hopes to see
Baron von Neurath again. The popularity of Mr. Henderson, who continues
to take a very independent strong stand as President of the Disarmament
Conference, is going down with the great Powers as much as it is rising
with the public here.
Under date of Sept. 24, a Geneva cablegram to the New
York "Times" said, in part:
On the evening of his second day in Geneva, Baron von Neurath, the
German Foreign Minister, called on Arthur Henderson and paid his respects
to the President of the Disarmament Conference, whom he had still been
studiously avoiding at noon. They had what was described as "a friendly
exchange of views."
Although this was Baron von Neurath's first conciliatory gesture since
his arrival, no one has grown optimistic over it. It took too much arguing
by British Opposition circles to convince the Reich's former Ambassador
to London that he was alienating a lot of sympathy by his attitude toward
Mr. Henderson and underestimating the latter's popular strength at
home. .
The exchange of views has certainly raised no hopes of Germany returning soon to the conference bureau, which will meet Monday. Other talks
have helped to make clear that the Bureau will not discuss the German
equality question, without Germany, in the near future.
Mr. Henderson still hopes to get a formula keeping the door open for
the Bureau to discuss such political issues later, and in them he includes
the Hoover plan for a one-third arms reduction. If he succeeded, he will
have only himself to thank, for if even the United States is pulling an oar
with him it is not making many ripples.
Holds German Forces Outnumber French—Right
Press in Paris Declares Germany Has About 850,000
Armed Men at Disposal.'
The following, from Paris, Sept. 24, is from the New York
"Times":
Winston Churchill's statement to the Hams Agency yesterday that
"although partially disarmed, Germany, in my opinion, is still the strongest
Power in Europe," was immediately taken up to-day by the entire Right
press, which is inclined to agree with him.
Without quoting Premier Herriot's secret evidence of Germany's alleged
hidden armaments, these newspapers agree that Germany has at her disposal armed forces amounting to about 800,000 to 850,000 men. These
figures include the regular army, the military police and the young men
who are members of associations giving military training, such as the
Stahlhelm and the Nezi storm troops.
2250
Financial Chronicle
Comparing this with France's official figures of 560,000 troops, of whom
205,000 are in the colonies, the writers feel that there is cause for alarm.
The "Journal des Debate" declares it has received information from one
of its correspondents that there are 65 factories in Germany, 57 of them
unauthorized, that are making heavy artillery, chemical products and
aviation material. It also charges that there are eight German factories
Making armaments in foreign countries, particularly Holland, Sweden and
Switzerland. Senates, in to-day's "Avenir," also claims to have knowledge
that there are such factories in Soviet territory.
Several newspapers call attention to Germany's increased expenditure for
national defense in the last few years and bring the charge, often made
before, that the German budget is falsified to hide how much is really
spent on arms.
The feeling among that class of the French populace that is genuinely
alarmed at the possibility of another war with Germany is summed up
characteristically by Jacques Rainville, who writes that the Americans, the
British and many Frenchmen are closing their eyes to what he calls the
heart of the disarmament question, which is "that Germany, which in 1914
declared war without good reason, to-day has exactly the same reasons to
make war as France has to desire peace." .
H. Rainville sees Germany waging a winning struggle now for equality
rights because the former Allies are no longer capable of seeing to it that
the Treaty of Versailles is applied and respected.
In the speech that he is going to deliver at Gramat to-morrow, Premier
Herriot is expected to take up this question of armaments, not attacking
Germany, but stating what France now regards as necessary as a guarantee
of national security. The Premier is not expected to divulge any of his
secret evidence.
Among the few foreigners who have any precise knowledge of the contents
of this collection of documents are Arnbaseador Edge, who is nearing the
Halted States on the liner Manhattan now, and Senator Reed, who will sail
on the Rex Tuesday. It is understood that M. Herriot discussed the matter
with them at a luncheon at the Ministry of Foreign Affairs last Monday.
Vice-President Curtis Declares Opposition to Cancellation of War Debts.
Declaring he was "opposed to cancellation of our foreign
debts," and asserting that the United States "was the last
great country to feel the dEpression and will ba the first to
recover," Vice-President Curtis carried the National Republican campaign to the southern border of Tennessee on
Sept. 22,said Associated Press dispatches from Chattanooga,
which also reported him as stating:
We realize that this is a world-wide depression and know that anything
to improve conditions in other parts of the world will help our own country.
We are, therefore, ready to help other countries in every way possible,
but this does not mean a cancellation of our foreign debts. Personally,
I am opposed to cancellation. and I know the sentiment of a large majority
of the members of the House and Senate is the same on the quesiton.
We are first anxious about our own depression, our own troubles; these
we shall solve by a continued united effort of our own farmers, our own
business men, our own laboring men and our own financial and industrial
leaders."
Germany Delays Payment of Debt—Postponement of
$8,262,500 Due Extended Under 1930 Agreement,
—Announcement by Secretary Mills—Other Countries Which Invoked Postponement Clause Greece,
Estonia, Latvia and Poland.
Germany has postponed a war debt payment of 33,050,000
reichsmarks, approximately $8,262,500, which was due to
the United States on Sept. 30, Ogden L. Mills, the Secretary of the Treasury, announced Sept. 28. From the
"United States Daily" of Sept. 29 we quote:
Postponement was extended under the terms of the war debt settlement
agreement signed by Germany and the United States in 1930. Germany
Is the fifth nation to resort to the postponement clauses of the debt agreements. according to additional information made available at the Treasury, and the total amounts postponed now aggregate to approximately
$9.6.44.500.
The German payment, which is composed of 20,400,000 reichsmarks
($5.100,000) due on mixed claims and 12 650 000 reichsmarks ($3,162,500)
due on army of occupation costs, will be postponed for two different lengths
of time, Secretary Mills stated orally.
Payment of the mixed claims installments may be delayed only two years
under the debt funding agreement because this same instalment was deferred last year under the agreement, the Secretary explained orally, but
the army of occupation costs, which were postponed last year under the
one year moratorium instead of the agreement, can still be postponed for
the maahnum permitted by the treaty, two and a half years.
Interest on the delayed mixed claims payment will be 5% and interest
on the army or occupation payment will be 3%%, according to Secretary
Mills's ors statement.
Under the terms of the debt agreement Germany should give notice of
postponement 90 days prior to the payment date, but the Secretary of the
Treasury may waive the requirement. Secretary Mills explained orally
that the German Ambassador had told him on June 30 that postponement
might be necessary.
Rather than accept notice at that time and thus eliminate all change to
receive the payment, Secretary Mills said that he egret(' to waive the notice
requirement if, as the paytnent date approached, Germany found herself
unable to pay.
Germany wished to make the payment and endeavored to do so. the Secretary said, but her supplies of foreign exchange are very low and the Ambassador therefore notified him that postponement would be necessary.
Keeping his promise of June 30, the Secretary therefore waived the notice
requirement, he said.
The other countries which have invoked the postponement causes of
their treaties are Greece, Estonia, Latvia and Poland. according to the
Treasury records. There now remains no tacit agreement with other
debtors such as that extended to Germany, the Secretary emphasized orally.
and the notice period on payments due from other debtors on Dec. 15 expired Sept. 16.
Secretary Mills's statement on the German postponement follows in full
text:
Oct. 1 1932
-Paragraphy5 of the Debt Funding Agreement dated June 23 1930.
between Germany and the United States, requires in connection with the
Postponement of the payment of any instalment not less than 90 days'
advance notice in writing," and paragraph 8 provides that the United States
In its discretion may waive any notice required hereunder.
Statement of Ambassador.
"Accordingly, as to the Sept. 30 payment, a 90-day notice would have
been given by Germany on or before July 2 1932. On June 30 1932 the
German Ambassador stated to the Secretary of the Treasury that the German Government desired to make the payments due Sept. 30 1932 to the
United States on account of the mixed claims and army costs, but that in
view of exigencies which might arise making it impossible for theGerman Government to pay..he would be obliged to give notice of postponement then and there, unless he could have some assurance from the Secretary of the Treasury that the 90-day notice would be wiavecl if the German
Government should find it impossible to make the payment.
In order to prevent such a premature decision and in the hope that postponement would not prove to be necessary, the Secretary advised the Ambassador that if Germany delayed its decision,the 90-day notice would later
be waived if the German Government should decide before Sept. 30 that
it must give notice of postponement.
Such notice of postponement, as provided in the original debt agreement, has now been received, and the Secretary of the Treasury has waived
the 90-day notice in accordance with his assurance to the German Ambassador."
The New;York "Times" in a dispatch from Washington
Sept. 27 regarding the likelihood of Germany postponing
the payment due, said:
It has been expected that Germany would request that Secretary Mills
waive the 90-day notice of postponement of a principal payment required
in the debt pacts, but so far, apparently, no official notice has been given,
although Mr. Mills has conferred 'with officials of the German Embassy
relative to the payment.
When this payment is settled the international debt question virtually
will be closed until after the election. Great Britain has made no request
for postponement of the payment on principal of 830,000,000 due Dec. 15.
Czechoslovakia will owe $1,500,000 principal on Dec. 15, but it is not
postponable under the debt agreement.
Adebt payment of $227,000 in November, due from Greece, is not
postponable. The payment is a part of the "new" loan of $12.167,000 to
Greece, which was negotiated when the Greek Government funded its
debt to the United States.
Greece postponed the $130,000 payment due July I. This was on the
debt advanced during and immediately after the war, which was funded at
$15.000,000. The next postponable payment by Greece will be due Jan. 1.
The total due from European nations in December includes $33,084,485
on principal and $91,849,936 in interest. Of the principal, $1.252,000 has
been postponed,$1,125,000 by Poland and the rest by Estonia and Latvia.
Belgium, France and Italy owe no payments on principal in December.
Great Britain, in addition to the payment on principal, owes $65.550,000
Interest on Dec. 15, France $19.261,432, Poland $3,070,980. Belgium
$2,125,000, Italy $1.245.437 and other countries smaller amounts.
The fact that the 90-day notice period has passed does not establish that
Great Britain will not ask for a postponement or revision, although officials
thought it unlikely, unless developments in England are more unfavorable
than at the present time.
The following Berlin cablegram Sept. 28 is also from the
"Times":
That Germany would not be able to meet punctually the semi-annual
instalment of $7.857.000 due Sept. 30 on mixed claims and army of occupation costa, as required under the German-American debt agreement of
March 1930, was first indicated early this month, when it was learned
that the German Ambassador at Washington had been instructed to apply
to the American GovernMent for permission to postpone the payment for
two and a half years.
Since the beginning of September the Reichsbank has barely been able
to preserve its gold re•erves for foreign exchange. Altogether, they have
increased by less than 3,000.000 marks since the end of August, and it is
expected that the end of the third quarter of the year will bring another
drain on the reserves.
But, aside from the question of transfer, it would be extremely hard,
If not impossible, for the government to raise funds it owes to the United
States.
The budgetary situation continues to be one of the chief problems in
the government's worries. Beneficial effects upon business are anticipated
from the government's bold program for economic reconstruction, but that
still lies in the future. What little effects have been noticeable so far have
been offset by the seasonal decline in business activity, and oven if business
picked up more rapidly it would be a long time before this improvement
would result in increased tax returns. Finally, there is a substantial budgetary deficit to be covered first before liquidity in the Reich Treasury
Will show improvement.
Cities of Cologne and Frankfort (Germany) Reported
Unable to Meet Obligations on Bond Issues.
The following from Berlin Sept. 28 is from the New York
"Evening Post":
The cities of Cologne and Frankfurt cannot meet their obligations on
their respective 40,000,000 reichsmark and 30.000.000 reichsmark internal
notes due Oct. 1. A decree has prolonged the notes for three months and
convoked a meeting of bondholders where conditions for further prolongation will be decided.
Henry Berenger Said to Urge Debt Cancellation—
Argues They Are Linked Indissolubly with Reparations.
The following from Paris Sept. 28 is from the New York
"Times":
Henry Berenger, who negotiated the Franco-American debt accord,
again takes the stand to-day that war debts and reparations are indissolubly
linked and that, since France is canceling reparations, the United States
must cancel the war debts.
The Senator's article is one of a series appearing daily in the evening
newspaper "La Liberte." The tenor of all these articles is that France
must not pay the war debts, and in order to rouse popular opinion against
payment the journal has organized what It calls "The General Taxpayers
Volume 135
Financial Chronicle
League." Since it is a newspaper of small circulation, little attention
hitherto has been paid to the campaign in American circles.
Senator Berenger argues that, "since the United States exercised pressure
on the Powers at the Lausanne Conference against wiping the slate clean,
of German reparations," that shows Washington admits a link between
reparations and debts. He also quotes a paragraph in the Mellon-Berenger
accord in which France made the reservation that the settlement was based
on the financial situation at that time and on the credits she expected to
receive in the form of reparations.
"This means France engaged to pay the United States only in the measure
we were paid by Germany and the other debtor States," M. Beregern
concludes.
American circles here are taking some comfort from the fact that neither
M. Berenger nor any other French opponent of the payment of war debts
has yet made the claim that France is unable to pay.
Montagu Norman, Governor of Bank of England,
Evades Query on Payment for Trips to United
States.
The following account, from London, Sept. 22, is from the
New York "Times":
Montagu Norman, Governor of the Bank of England, was asked about
his traveling expenses to America at to-day's meeting of the directors.
One of the directors inquired if the expenses were met out of his salary
of £2,000 a year.
"I see you go to America from time to time, and I am wondering how
the expenses are met," he said.
Mr. Norman replied:
"Expenses incurred by anybody on the Bank's behalf are paid by the
Bank, but any person Will) travels on his own behalf pays his own expenses."
Billion-Dollar Association of Investment Trusts Formed
by British Trust Companies—Move Reported Development of Foreign Exchange Restrictions.
A billion-dollar association of investment trusts, representing 25() to 300 of the largest British trust companies,
was formed on Sept. 24, according to Associated Press accounts from London on that date, which also stated:
The object of the organization, it was announced, is to protect the interests
of. the trusts and their shareholders, especially against default of home and
foreign borrowers. The central organization, it was pointed out, also would
enable the trust companies to speak with one voice on any particular problem
of default.
.The trusts represented include the Investment Trust Corporation, Industrial and General Trust, Mercantile Investment. and General Trust, and
the British Investment Trust.
It is anticipated the association will act in co-operation with Continental
and American organizations where firms with which they deal has foreign
Interests.
With regard to the above, the New York "Herald Tribune"
of Sept. 25 stated:
Due to Exchange Curbs.
The mobilization of British and Scottish investment trusts in a single
unit to protect,their far-flung interests and shareholders against defaults
of home and foreign borrowers is a direct outcome of foreign exchange
restrictions, prevention of transfer of funds and other economic impediments
resulting from the world-wide depression.
London dispatches state that American companies will also co-operate
with the investment trusts on the Continent. In the last two years American
Investment trusts have been liquidating a substantial portion of their
foreign holdings, but in spite of these operations a sizable amount of their
funds are still tied up in internal and external securities of European and
South American countries.
Portfolio Figures Given.
The extent of their holdings may be gauged from portfolio figures grouping investments geographically. Based on results at the end of 1930,
71 British and Scottish companies distributed their funds as follows:
Great Britain, 45%; 'United States and Canada, 14%; Continental Europe,
18%; miscellaneous, 7%. The latter figure includes investments in South
American countries which at one time were extensive.
Conditions in the last two years were the most unfavorable these companies had M face since the Baring crisis of the late '90s. As a matter of
fact, their results in 1931 were the worst since their organization period
preceding the Baring crisis. A principal cause of their discomfort was the
divorce of sterling from gold.
Loss As High As 39%.
The average results of 65 companies prepared by "The Financial Times
of London" for the first quarter this year indicated that the companies
suffered reduction in income owing to foreign exchange restrictions and
prevention of transfer of funds ranging from 18 to as high at 39%.
Depreciation ranged from 35 to 50%. Scale of the ordinary stocks had no
value but companies continued to pay dividends.
United Founders Corporation and its subsidiary companies will undoubtedly participate in the new organization through its affiliate, TransOceanic Trust, Ltd., of London.
The British and Scottish investment trusts have twice before banded
together for concerted action. After the declaration of war by Great Britain
In 1914 the companies turned over their marketable American securities
to the British Government and accepted Government bonds.
In more recent years the companies were instrumental in organizing
British Trusts Association, Ltd., as a co-operatively owned financial organization.
Except for the recent development of groups of companies, American
Investment trusts have done very little from a community of interest point
of view because of their comparatively recent adoption in this country and
the fact that the consolidation movement has not spent itself yet.
Money Unlendable in Lombard Street—British Treasury Bills Go at Record Low.
From its London bureau, the "Wall Street Journal" of
Sept. 24 reports the following:
Money was almost unlendable in Lombard Street Friday and bill rates
were nominal, following a new low record rate of allotment for this week's
Treasury bills. Keen competition for the bills was caused by the popularity
of this issue as a year-end maturity.
2251
The volume of discount business remains very small, being limited only
to occasional purchases by the Clearing banks. Smaller discount brokers
are being hit by the continuance of unprofitable and inactive bill business
and are anxious as to how long present conditions are likely to last.
The market hopes that the Treasury will soon issue a new short-term bond
Issue to cover forthcoming maturities and that the bank rate will be lowered
at the same time. However, some quarters think it possible that the
Treasury may hold its hand, allowing the weight of cash to be paid dissenting war loan holders, coupled with the half-year's dividend on the 5% war
loan, both payable Dec. 1, to have their full effect on the gelt-edged market.
Meantime the Treasury would finance its cash payments by the issue of
Treasury bills at the current exceptionally low rates. On the other hand,
many quarters expect that the Treasury's new conversion offer will be made
at the turn of the month next Friday.
The low money rates operative in London are discouraging offers of
foreign deposits. The cheapness of bill rates is leading to the financing
of crop movements from the United States, and the discounting of these bills
Is causing early pressure on sterling-dollar exchange.
Sterling Decline Laid to Seasonal Factors—British
• Not Alarmed by Steady Depreciation.
In its Sept. 26 issue, the New York "Times" printed the
following from London, Sept. 22:
The renewed weakness in sterling has recently provided an otherwise
extremely dull money market with a topic of discussion.
Even this development, however, aroused only desultory interest, and
It can be explained more or less by what the market calls the seasonal
factor. Seasonal demands for dollars were offset during the revent reaction
In Wall Street, which resulted in a certain transfer of funds from New
York to London, but as this backward drift of capital has now ceased,
seasonal influences are again in play.
There is also evidence that the sudden bullish revival in Wall Street
attracted London to active participation, while anticipations of the success
of the French conversion scheme have adversely influenced sterling by
causing an appreciation of francs in relation to sterling.
It has been frequently noted that as long as sterling declines without
precipitation official intervention is absent. It is only when a certain
violence of movement either way occurs that control comes into operation.
Our authorities, judging from their present inaction, are not at all concerned by the steady deprecation of sterling as long as this is due, as now,
to more or less normal factors.
London "Times" Will Appear in a New Dress,
Abandoning the Masthead Used Since 1788.
In its issue of Sept. 26 the New York "Times" published
the following from London:
The London "Times," the most settled in its habits of any newspaper
in the world, will appear in a completely new dress beginning with the
issue of Oct. 3.
The change was described to-night as the most thoroughgoing any newspaper has ever made and will affect almost everything in the "Times"
except its size, shape and general character. Even the Gothic masthead,
"The Times," which has appeared on the front page since 1788, will be
changed to block Roman letters recalling the old New York "Herald."
With the new plainer lettering, the "Times" reverts to the original style
of the paper when it first appeared as "The Daily Universe Register" in
1785.
The body type, that used generally throughout the paper, will be
changed to a new font called The Times New Roman This has clear
bookish-looking letters designed after tests by ophthalmic experts. There
also will be a new type for headlines, although the "Times" will keep
its invariable rule never to print headlines wider than a column and will
continue to display the main news in the middle of the paper, keeping
advertisements on the first page.
Some of the innovations will throw ancient newspaper traditions to the
winds. The parallel lines across the first page, between which most
newspapers print the date and number of each issue, will disappear and
the date will be printed modestly beneath the lion-and-unicorn crest in
the masthead. There also will be a complete typographical revision of
the subsidiary publications of the "Times," including the weekly edition
and the literary supplement.
British Treasury to Continue Fiduciary Issue.
The following (United Press) from London Sept. 30 is
from the New York "Sun" of last night:
The British Treasury to-day authorized the Bank of England to continue
its £275,000,000 ($948,750,000) fiduciary issue until December 31.
The "Sun" observes:
The fiduciary issue is that part of the authorized circulation of the Bank
of England in excess of £260,000,000. Authority to issue £15,000,000
fiduciary notes was granted Aug. I 1931 for brief periods and since that
time has been renewed at intervals for brief periods.
-
French Bond Conversion Regarded as Success—Reimbursement Requests so Few, Extra Bond Issue
Reported Unnecessary—Many Buy 43."7
0 Securities—Salary Cuts Seen Now.
The time limit for reimbursement of holders of the rentes
included in the conversion operation expired on Sept. 24
and the Finance Minister, Louis Germain-Martin, informed
the Council of Ministers at Rambouillet that the transaction had been an undoubted success. A Paris cablegram
Sept. 24 to the New York "Times" from which we quote
further, stated:
He said he would be able to make public complete statistics to-morrow,
but already was able to state that proportionally fewer French holders
had asked reimbursement than British holders during the recent British
conversion operation.
On the previous day (Sept. 23) a cablegram to the same
paper (from Paris) said:
With the time limit for reimbursement expiring at noon to-morrow,
Louis Germain-Martin, the Finance Minister, to-night informed a meeting
2252
Financial Chronicle
of the Cabinet that the prospects for the French rentes conversion operation were "clearly favorable."
Up to this morning the total amount of reimbursement demanded
was estimated at less than 1%, or slightly more than 800,000.000 francs
[about $32,000,000] on an operation aggregating 85,000.000,000 francs
l$3.400,000.000].
At the same time official figures showed that there had been received
orders for 500,000,000 francs in new subscriptions to the converted issue,
which means that in reality the Government had been required to reimburse only about 300,000,000 francs as matters stood to-day.
There were no big lines at bank windows or the Treasury to-day, and
it appears improbable that there will be a last-minute rush to-morrow
when the banks will close at noon.
We likewise quote from the "Times" a cablegram as
follows from Paris Sept. 25:
Summarizing the conditions under which the great French rentes conversion will be effected, now that the six-day time limit for reimbursement
has elapsed, Finance Minister Germain-Martin said to-night the reimbursements would total only 2.5% of the total of 85,000,000,000 francs [S3,332,000,000] involved.
As a consequence, he said, the Government would not even be obliged
to have recourse to the issuance of Treasury bonds to cover the reimbursement, as authorized at the recent session of Parliament.
Many Orders for New Bonds.
The total sum that the State would have to reimburse to holders of 5,
6 and 7% bonds to be converted into a 4%% issue, would not greatly
exceed 4.000,000,000 francs, he said. On the other hand, new orders for
the 4%% issue already amounted to 2.000,000,000 francs, which meant
the State would be forced to find only that much money to handle all the
requests for reimbursement, the Finance Minister explained.
Analyzing the reasons given by those demanding that their money be
refunded, M. Germain-Martin mentioned four main causes—the world
crisis, the international political situation, uncertainty over the French
budgetary situation and local difficulties, such as the lack of ready capital
in the wine-growing districts of France.
Some holders of French Government securities were said to have exaggerated fears inspired by the political disputes between France and
neighboring countries, while others feared Parliament would fall to take
the necessary steps to maintain the sound position of the Government
bonds. Both of those attitudes, the Finance Minister said, he felt confident
were groundless.
The Finance Minister of France paid tribute to British finance as having
taken the initiative and pointed the way by conversion, which had inspired
the French with confidence in the success of the delicate operation. He
said he believed France would benefit in many other ways than through
the mere budgetary savings effected by the operation.
Industry now should easily find capital available at lower rates of interest,
he said,and unemployment should be materially relieved and prices lowered.
Moreover, financial circles believe that the rate of 4 % fixed by the
French Treasury will tend to keep gold coining to France when the rates
of interests on other government bonds in Britain, Holland, the United
States and Switzerland are considerably lower.
Herriot Proclaims Success.
In addresses at Gramat. Premier Herriot referred to the rentes conversion as an immense success. He declared the Government's intention,
however, not to arrest its action with this measure, but to push forward
the national program of public works to relieve unemployment and to
associate other classes as well as rentiers in the national sacrifices.
The latter reference was taken to indicate the Premier's intention to
proceed with cuts in the salaries of Government employees. The Premier
said there existed a formidable mass of hoarded wealth in France which
the Government was determined to bring forth into honest and guaranteed
forms of productivity.
The whole activity of the Paris market was dominated last week by
the conversion operation, and financial circles generally expect a very
favorable effect on the French financial situation. The economy for
the Treasury totals 1,320,000,000 francs ($51,744,000) for 1933 and will
thus facilitate balancing of the budget next year, a task that already
appears to be arduous.
Urge Salary Reductions.
The opinion prevailing in financial and political circles is that the sacrifices demanded of rente holders by the conversion are insufficient to balance
the budget and that a corresponding sacrifice must be demanded of public
servants, particularly by a reduction of salaries. Such a step is very unpopular, however, and is meeting strong opposition.
It is, nevertheless, a means of removing the budget deficit. The French
public, moreover, is convinced the Government will take the action to
maintain the order of the State's finances and avoid compromising the
stability of the franc.
The money market was untroubled by the conversion, money remaining
abundant and the rates unchanged. Call money was five-eighths of 1%
and outside discounts around 1%.
From copyright advices Sept. 24 from Paris to the New
York "Herald-Tribune" we take the following:
$50.000,000 Annual Saving Expected.
It is expected that the conversion will save the Government 1,300.000.000
francs ($50.700,000] annually, of which 900,000,000 francs if,35,000,000]
will affect the budget and the remainder relieve the sinking fund. This
does not include, however, the life annuity alternative, which is offered to
holders more than sixty years old who are ineligible for the income tax and
have held their bonds since before November 1920.
The arrangements for dealing with bondholders were much more extensive than in any previous conveision and required an additional appropriation of 6,400.000 francs 4249,6001 and an extra personnel of many thousands. There were 6,000 Treasury bureaus at work, as compared to 500
at the last conversion in 1902.
Previous Conversions Cited.
In the conversion of 1902 the demands for reimbursement amounted to
1%.
In the previous conversion of 1894, of 1.765.of
only one-eighth
000 holders only some 400 refused to convert their bonds. Thus,conversion
has a tradition here which is expected to be sustained in the present operation, making it much more complete than the British effort.
Earlier estimates, which had placed nearly three-fourths of the issues
converted in the hands of banks and large corporations and only one-quarter
in the hands of small investors, are said now to have been erroneous, the
latest appraisals reversing the proportion.
Reimbursement demands will be met by the issue of additional 4.5 per
cents, the authorization for which beyond the conversion total was granted
by the conversion law. This also will be made Use of to Insure that the
Treasury will be provided with ample funds to cover current needs in
preference to floating new issues of Treasury bonds.
Oct. 1
1932
The bond conversion plans were referred to in these columns
Sept. 24, page 2074.
France Faces Seven Billion Franc Budget Deficit—
Financial Circles Advocate Non-Party Government
to Handle Paris Crisis.
The following (Associated Press) from Paris, Sept. 24 is
from the New York "Herald Tribune" of Sept. 25:
A national non-party government to deal with an empty treasury and a
budget deficit of about 7,000,000,000 francs is being advocated in financial
circles which fear that the Herriot Government may not be able to meet
the situation.
The task is this: either levy new taxes to the extent of 7,000.000.000
francs (*280,000.000) or cut government expenses by that amount.
The National Treasury, which three years ago held a net balance of
$800,000,000, has been raided for various purposes until it is almost dry.
The public purse came so close to being empty a short time ago that shortterm Treasury bonds had to be issued.
Appeal to Country.
The situation has forced Louis Germain-Martin, the Minister of Finance,
to appeal to the country to take necessary drastic steps to maintain the
franc on a solid foundation.
An orthodox financier, M. Germain-Martin has maintained a school of
sound finance in the wing of the old Louvre Palace, where the Ministries of
Finance and Budget are housed. Here schemes are being drawn for presentation when Parliament reconvenes.
With the back wash of the world economic depression hitting the country
more and more, the balance of trade continues to be unfavorable and
taxation returns decline each year.
Cabinet Opposes Cuts.
The Finance Minister and his Cabinet colleague, Maxima Palmado.
Minister of the Budget ran into a strong Parliamentary opposition last
June when they brought forward first plans for meeting a part of the budget
deficit. Even certain members of the Cabinet were unwilling to support
drastic reductions.
With this fresh in mind, M. Germain-Martin said in his call to the public:
"A choice must be made between salutary methods which demand
adaptation of expenditures to the existing resources of the nation or expedients which, if adopted, will make all financial redressment impossible. To
temporize, tt refuse to make the effort, would be highly culpable."
The press of the Right as well as financial circles greeted the minister's
speech warmly, but some, such as "Figaro," expressed the belief that only
a national non-party government could take the necessary steps.
Germany's Measures for Relief of Agriculture Through
Compulsory Reduction of Interest Rates—Import
Quotas for Agricultural Products Will Restrict
Fruit and Lard Imports from United States.
In a Berlin cablegram, Sept. 26, to the New York "Journal
of Commerce," it was stated that the German Government
announced on that day new measures for the relief of agriculture through compulsory reduction of interest rates paid
by farm debtors. The cablegram went on to say:
It has decreed that interest on agricultural mortgage obligations shall
be reduced by 2%, except that such a cut shall not bring the rate down
below 4%.
The interest which will not be paid is to be added to the principal of the
obligations, but repayment is not required until after the maturity of the
obligation. Thus, where gradual repayment of a mortgage over a 10%
period is provided, the amount of the reduction in interest is payable after
the 10-year period. No interest is allowed on this sum.
The Government will give special aid to those financial Institutions In
which agricultural mortgages constitute more than 10% of the portfolio.
This will apply to mortgage banks and co-operative farm financing bodies.
This will permit interest paid on farm mortgage bank bonds to be left
alone. On the other hand, savings banks, insurance companies and Ind!.
vidual creditors will have to carry the burden of the new arrangement alone.
Indicating that the Government planned to Issue a decree
introducing import quotas for a number of agricultural products, a Munich cablegram, Sept. 26, to the New York "Times"
also had the following to say:
This was revealed this morning by Minister of Agriculture von Braun in a
speech before the agricultural council of Bavaria.
Shifting from the old system of tariff walls to the rigid restriction of
imports by admitting only specified amounts of certain goods represents
the main part of the program of farm relief which is to supplement
the
Government's ambitious economic reconstruction scheme, decreed several
weeks ago.
The list of goods for which quotas will be fixed includes 20 categories.
The United States will be chiefly affected by restrictions on imports
of
lard and fresh fruit, notably apples, for which Germany, next to
England;
has been the best European market for American exporters.
Foreigners to be Consulted.
The quotas probably will become effective within the next two
weeks.
Before definitely deciding the size of the quotas the Government
intends
to get in touch with the governments of the nations chiefly involved.
But
Baron von Braun has made no secret of the Government's
determination to
consider foreign interests only as far as the plight of German
farmers
permits.
Quotas will be fixed for only three months, until the end of December.
The Government will have a free hand to revise the quotas at any time
thereafter to meet the development of domestic prices. The Govrnment
also will be authorized to add new categories of goods to the list.
To preserve the competition of foreign exporters for the German market,
the amounts that may be imported will not be divided among foreign
exporting nations, but German firms will be permitted to import certain
percentages of the amounts they imported in the corresponding period last
year. German importers will be free to decide where they want to buy goods.
The list of goods to be restricted includes cabbages, tomatoes, onions,
flowers, grapes, apples, pears, oranges, pine wood, pulp wood, lard, bacon,
butter and other items. The United States exports to Germany lard, bacon,
pine wood, apples, pears and oranges. Among these lard and apples are the
most important items.
Volume 135
Financial Chronicle
Almost 70% of the lard imported by Germany in 1931 came from the
United States. The total imports of lard in 1931 were 83,200 tons, of
which 57,000 tons, valued at $12,000,000, came from the United States.
In the 12-month period ending with June 1932, Germany imported
84,300 tons of apples, of which 47,500 tons, worth about $5,000,000, came
from the United States. Germany had an excellent crop of apples that
year, BO imports for the previous years were much larger. In the 12 months
ending with June 1929, the total imports were 282,900 tons, of which
114,500 tons, worth about $14,000,000, came from the United States.
There has been talk of the quotas amounting to 40% of the average
Imports between 1929 and 1931.
Foreign Reprisals Are Feared.
Industrial circles fear foreign reprisals affecting Germany's exports and
have vigorously opposed the quota system. There is widespread apprehension that this will be only the beginning of a new era for Germany's
foreign-trade policy, with economic self-sufficiency the ultimate goal.
But the Cabinet has repeatedly stated it desires to promote Germany's
foreign trade.
Baron von Braun emphasized to-day that only the alarming situation
of the German farmers, comprising about 30% of the population, forced
the Government to adopt these quotas.
The second part of the farm program deals with the reduction of interest
rates, especially on funded long-term loans. The Government has refrained
from an all-around conversion. Instead, it will be decreed that for two
years the interest or mortgages shall be reduced by 2%, the reduction to
be repaid later. This will not lead to a corresponding reduction of
interest on mortgage bonds, as the Government will financially assist
mortgage banks and other banks.
To open the way for the reduction of excessive interest rates on unfunded
credits the Government will assist in the financial reorganization of
agrarian credit co-operatives. To this end the Reich will virtually buy up
the Preussenkasse, the central bank of these co-operatives, which is controlled by the Prussian State.
Italy Moves Against German Exchange Restrictions—
Forms Clearing House to Assemble Italian Money
in Germany to Pay Bills.
The following (Associated Press) from Rome, Italy,
Sept. 26, Is from the New York "World-Telegram":
The Government announced to-day the inauguration of "defensive" measures against German exchange restrictions in the form of a clearing house
to assemble Italian money and credits in Germany and utilize them to pay
Italian bills for German exports.
In this way Italians will get some of their frozen deposits out of Germany.
There has been a temporary agreement for exchange of commercial credits
expiring Sept. 30. It accomplished little, but Germany refused to renew it.
The Government also has retaliated for increased French customs by
ordering similar increases on French exports.
2253
The plan to increase the liquidity of commercial banks involves the foundation of two holding institutions called the Industrial and Financial Corporation and the Amortization Bank. These will take over frozen and doubtful
claims of commercial banks and also part of the Boerse securities held by
the latter, some of which, in view of the necessity of the financial reconstruction of industrial corporations, are unrealizable and uncertain in value.
The process of the reconstruction of corporations is only half accomplished. In the first half of 1932, 414 corporations were reconstructed,
reducing their capitalization by 965,000,000 marks [about $231,600,000],
but similar reconstruction is necessary for many first-class corporations,
Including the Steel Trust and General Electric, and against such corporations banks have big claims in addition to holding their stocks.
The new institutions will hold such claims and stocks until the financial
position of the corporations is cleared up. The creditor commercial banks
will take instead claims against the holding institutions, and will be able
to turn these into cash. This will make it easier for commercial banks to
lend money to industry on the security of the Government's new taxation
certificates.
As the capital of the holding institutions will be meager, it is difficult
to see how the plan can succeed without putting new pressure on the
Reichsbank, but against this the commercial banks will find it easier to
repay their own debts to the Reichsbank, which have also been virtually
frozen since the 1931 crisis.
The new corporation formed to take over the frozen assets
of German banks was referred to in our issue of Sept. 24.
page 2075. The reduction in the Reichsbank discount rate
was likewise noted on the same page.
German Exporters May Buy Own Bonds with Devisen.
From the "Wall Street Journal" of Sept. 24 we take the
following from Berlin:
By recent decree the German Government regulates the purchase of
German foreign bond issues by German citizens. In principle, the Reichsbank
grants no foreign exchange for purchase of these bonds; but one exception
Is made.
An exporter who is able to prove that the transaction cannot be carried
out otherwise, now may use 60% of the proceeds derived from his exports
to purchase foreign German bonds, but the balance of 40% must be paid
into the Reichsbank in foreign exchange. The purchaser of the bonds must
then sell out to the Reichsbank or the debtor of the loans.
In this manner the Reichsbank expects to repatriate sufficient of the
issues to cover the annual sinking funds. The exporter also makes a profit,
as German foreign issues are at a higher quotation at home than abroad,
despite the fact that the interest when paid in Germany is in marks but
when paid abroad is in the currency of the country concerned.
The difference between home and foreign quotations has been as much
as 20% but is now approximately 10% and bankers here doubt whether
this margin is sufficient to make any improvement in exports.
Foreign Trade Boost Urged by Dr. Luther—President German Dollar Bond Quotations—Berlin Bourse Will
of German Reichsbank Declares Tendency to SelfList Coupons for German Holders.
Sufficiency Must Be Disregarded.
The following wireless message, from Berlin, Sept. 23. is
Dr. Hans Luther, President of the Reichsbank, emphasized from the New York "Times":
It has been decided to introduce an official Bourse quotation in Berlin
on Sept. 27 the necessity of promoting foreign trade by all
for coupons of German dollar bonds. Hitherto the total sum of the coupons
means, regardless of tendencies toward economic self-suf- -has been remitted in dollars from New
York and German holders of these
ficiency throughout the world, according to a Cologne cablebonds have cashed in only weeks after the date of maturity of the coupons.
In the future the German holders will get cash in reichsmarks immediately
gram, Sept. 27, to the New York "Times," which also stated:
In a speech here he also touched on the problem of "Germany's foreign
debts.
Germany did not bring about the present situation, which forces her to
take measures she dislikes, he said, referring to restriction of agrarian
imports, announced yesterday. The enormous debt burden is nothing but a
result of reparations, he added.
Germany, of course, will do everything in her power to meet her existing
obligations, he continued, "but the good-will of the world is necessary in
order to enable her to do so."
If the present crisis is to be overcome, two things are necessary, he declared: Private business transactions through short-term debts must be
transformed into long-term debts, and world trade must be set in motion
again.
No Threat to German Exchange Seen by Berlin in
Discount Cut.
In a Berlin message, Sept. 23, to the New York "Times" it
was stated:
After the announcement that the discount rate had been cut the reichsmark slightly weakened on some Continental bourses. Berlin rates on
Brussels, Paris and Zurich were advanced, with Amsterdam and Rome
unchanged.
The dollar continues officially to be quoted in Berlin at 4.213.
The discount cut involved no threat to reichsmark exchange, which is
maintained exclusively by official restrictions on payments abroad.
The increase of 13,000,000 marks in gold in the last Reichsbank return
represents a purchase in Amsterdam which was paid for in foreign exchange.
Moscow reports an impending new shipment of gold for Berlin.
The reduction in the discount rate was noted in our issue
of Sept. 24, page 2075.
Cut in Discount Rate of Reichsbank Cheers German
Finance—Action Viewed as a Sign of Cabinet's
Plan to Aid Industry by Cheapening Credit.
The reduction in the discount rate to 4% and the Government's new plan to restore the liquidity of commercial banks
brought further improvement in business sentiment last
week, according to an announcement from Berlin, Sept. 23,
to the New York "Times," Which also had the following
to say:
While the discount cut was justified by the Reichsbank's satisfactory
status, it is primarily considered a mark of the Cabinet's policy to help
industry by cheapening credit.
at the Bourse quotation of the coupons. This will reduce the demand for
dollars on the Reichsbank.
Speyer & Co. as Fiscal Agents Announce Receipt of
Funds for Payment of Oct. 1 Coupons on Bonds
of City of Frankfort, Germany.
Speyer & Co., as fiscal agents for $2,800.000 City of
Frankfort-on-Main 7% serial gold bonds, announce that they
have received the regular remittances for the payment of
the Oct. 1 1932 coupons of these bonds and for the payment
of $200.000 bonds maturing on that date.
Amount Required for Interest and Amortization of
German Dollar Bonds in Remainder of Current
Year $34,154,749, According to Max Winkler.
Without taking into account the savings accruing to Germany by reason of her having succeeded in buying back large
blocks of dollar bonds, the sums required for interest and
amortization on all German dollar bonds outstanding in the
American market amount, for the balance of the year, to
$34,154,749, according to a compilation by Max Winkler, of
Bernard, Winkler & Co., members of the New York Stock
Exchange. Mr. Winkler says:
The heaviest payment on account of interest is due Oct. 15, amounting
to $5,785,894. It is followed by payments due Nov. 1, aggregating somewhat
less than $5,000,000. Payments due Oct. 1 are somewhat under $4,500,000,
while payments on Dec. 1 amount to $4,255,855. Interest requirements due
Dec. 15 and Nov. 15 aggregate $428,880 and $46,095, respectively.
Amortization requirements are heaviest Oct. 15, amounting to $4,646,750.
Nov. 1 payments are next with $3,296,250, followed by Dec. 1 requirements
totaling $3,225,150; Oct. 1, with $2,731,750; Dec. 15, with $250,000, and
Nov. 15, with $37,500.
Details are presented in the subjoined table:
Amontzation.
Total.
Interest.
Oct. 1
82.731.750.00
84,484,272.50
57,216,022.50
Oct. 15
4,646,750.00
5.785,894.00
10,432,644.00
Nov. 1
3,296,250.00
4,966,352.50
5,262,602.50
Nov. 15
37,500.00
46,095.00
83,595.00
Dec 1
3,225,150.00
4,255,855.00
7.481.005.00
Dec. 15
250,000.00
428,880.00
678.880.00
Total
514,187.400.00
319,967,349.00
834,154.749.00
The figures presented above are the maximum payments as provided by
the terms of original loan contracts, giving no consideration to the large
2254
Financial Chronicle
Oct. 1
1932
amounts that are known to have been repurchased for German account as
well as tor that of other Europeans. Conservative estimates place the
amounts so repurchased at not less than 25% of the total outstanding in
the American market.
On this basis, requirements in connection with interest payments on
dollar loans should amount to less than $15,000,000 for the remainder of
this year, with sinking fund payments to somewhat more than $10,500,000—
or a total of $25,616,000 for the three months, equivalent to a monthly
average of $8,500,000.
owner and unusually large estates, also are to be expropriated, with indemnity to the proprietor.
Indemnity, where it is made,will be from 1% to 20% in cash and the rest
In agrarian bonds amortizable in 50 years and bearing 5% interest. Dispose] of these bonds by their holders is restricted. The Government is to
set aside 50.000,000 pesetas annually to meet agrarian expenses.
The vast land holdings of 127 dukes, 123 marquises and 90 counts are
expropriabie without payment. The holdings of Count Romanones alone
are estimated at 80,000,000 pesetas.
Part Payment of Interest on State Mortgage Bank of
Jugoslavia 7% Bonds.
J. & W. Seligman & Co., fiscal agent for State Mortgage
Bank of Jugoslavia secured 7% bonds due April 1 1957,
announced on Sept. 29 that a part payment of interest due
Oct. 1 on these bonds would be made on that date at the
rate of $13.54 for each $35 coupon and $6.77 for each $17.50
coupon. The announcement also says:
Bonds of Kingdom of Italy Drawn for Redemption.
J. P. Morgan & Co., as sinking fund administrator, is
notifying holders of Kingdom of Italy external loan sinking
fund 7% gold bonds, due Sept. 1 1951, that $2,251,100
principal amount of these bonds have been drawn by lot
for redemption on Dec. 1 1932, out of moneys in the sinking
fund. Such drawn bonds will be redeemed on and after
the redemption date at their principal amount at the office
of the bankers. Interest on the drawn bonds will cease
after Dec. 1.
Due to the difficulties in obtaining foreign exchange, the bank has been
unable to transfer to New York the funds necessary to pay in full the
service charges on the bonds, but has made available for distribution
to the bondholders an aggregate of $109,071.47 previously held as a dollar
deposit in New York with the fiscal agent. The bank has deposited to
the credit of the fiscal agent with the National Bank of Jugoslavia an
amount in dinars sufficient to purchase at par ofexchange the dollar amount
necessary to complete payment in full of the service charges due at this
time.
Jugoslavia Awaits Resumption of Foreign Lending—
Present Industrial Production Set at About
$150,000,000.
Because of its many varied rasources, Jugoslavia, which
has long been encouraging investment of foreign funds, is
reported to be eagerly awaiting the post-depression resumption of foreign lending in order to develop its industrial and
agricultural resources, according to Commercial Attache
E. Kekich, Belgrade, Jugoslavia. The Department also
had the following to say on Sept. 21:
Industrial development of Jugoslavia, although retarded during the
present economic depression, has been rapid during the 13 years of the
Kingdom's existence. The present industrial enterprises of the countrY,
exclusive of those based on agriculture, number about 2,500, with an annual
production of around $150,000,000. In addition, the yearly production of
household industries may be put at about $60,000,000.
Netherlands Proposes Import Duty Surtax and Manufacturers' Sales Tax.
The Department of Commerce at Washington announced
on Sept. 27 that legislation proposed in the Netherlands
would subject imports to a surtax of three -tenths of the existing import duties and establish a limited manufacturers'
surtax, in order, it is understood, to increase Government
revenue, according to a cablegram of Sept. 24 to the Department of Commerce from Commercial Attache Jesse F.
Van Wickel, the Hague.
Sweden's Cash-Dole Receivers Must Prove Willingness
to Work.
The following announcement was issued under date of
Sept. 20 by the Department of Commerce at Washington:
The 1,500 unemployed persons in the City of Stockholm, Sweden, who
now receive a cash dole because of their unemployed status will be required
to perform two days' work each week, according to an announcement by
the city government forwarded by Consul John M. Morehead, Stockholm.
and made public by the Department of Commerce.
It Is believed that this action has been taken in an effort to determine If
the recipients of the dole are willing to work if employment is made available
to them. It was not stated what kind of employment would be provided.
Italian Sales Tax.
From Milan (Italy) advices to the "Wall Street Journal"
of Sept. 27 said:
Goods imported from France will be subjected to a special sales tax,
varying from 23,6% to 7%% ad valorem, according to the state of workmanship, in addition to the ordinary sales tax. A new Government measure
provides that exporters of Italian products to France will be refunded the
homes sales tax of 2% on semi-manufactured and 4% on manufactured
goods by Italian authorities if they prove that the goods are subject to
special taxes on entering France.
Spain Taking Over Property of Nobles—No Payment
to Be Made—Absent Landlords to Get Cash and
Bonds for Holdings.
Madrid advices as follows, are taken from the "Wall
Street Journal" of Sept. 28:
Execution of Spain's agrarian reform law, just passed by the Cortes,
will begin soon. Preparations have been made for the registration of all
expropriable lands.
Spain's agrarian reform law does not differ materially from agrarian
measures recently adopted by other nations, except that the Spanish law
is more revolutionary, being perhaps the most far-reaching measure of
social reform enacted outside of Russia since the war.
The law authorizes the seizure without payment except for certain improvements made of all lands belonging to nobility, and their transfer to the
peasants. These lands will comprise the bulk of expropriable tracts, but
others, including undercultivated lands, lands not directly cultivated by the
Treaty Ratifications Exchanged Between United States
and Greece—Documents Relate to General Arbitration and Conciliation with Greece.
Ratifications of the general arbitration treaty and the
treaty of conciliation between the United States and Greece,
both signed at Washington on June 19 1930, were exchanged
Sept. 23 by the Secretary of State and the Minister of Greece
at Washington, according to the "United States Daily" of
Sept. 26, which reported the Department of State as announcing:
These treaties are similar to the other general arbitration treaties and
the conciliation treaties of the United States signed and brought into
force within the last four years. Such general arbitration treaties are
now in force between the United States and 27 other countries, including
Greece; and such conciliation treaties are now in force between the United
States and 19 other countries, including Greece.
In addition, there are in force general arbitration treaties with six
countries concluded in 1908-1909 by Secretary of State Root and conciliation treaties with 19 countries concluded in 1913-1914 by Secretary of
State Bryan.
Appointment of American Citizen As Trustee for
Two Bulgarian Loans Issued Under League of
Nations Regarded by Institute of International
Finance As Adequate Protection to American
Holders of Bonds—Bondholders' Protective Committee Considered Inadvisable.
The Institute of International Finance, through its Director, John T. Madden, Dean of the School of Commerce, Accounts and Finance, New York University, issued a bulletin
late Saturday. (Sept. 10) expressing the opinion that the
appointment by the Council of the League of Nations of an
American citizen, Louis P. Sheldon, as trustee for the two
gurian loans issued under the auspices of the League
aff,Nris adequate protection to American holders of these
bond.. The Institute states that although the last coupons
on both Bulgarian issues were paid, a partial moratorium is
now in effect as a result of the decree of the Bulgarian Government dated April 20 1932, suspending transfer into foreign currencies of 50% of the amount required for the service
of its external debt during the six months April-September.
The amount of dollar bonds affected is $16,989,500. .
In discussing the advisability of forming bondholders'
protective committees, the bulletin says:
The bankers who sold the American portion of the Bulgarian loans
state
that they are in close contact with the Bulgarian Government and the
League of Nations, and that they are endeavoring to obtain compliance by
the
Bulgarian Government with its obligations under the Loan Agreement.
Both Bulgarian loans have been issued under the auspices of the League
of
Nations, which has thus assumed a measure of responsibility to
protect
bondholders, many of whom undoubtedly bought these bonds only
because
of League sponsorship.
The Institute of International Finance has repeatedly expressed
the
opinion that protective committees should be formed only when
economic
and financial conditions in defaulting countries are such as to warrant
the
belief that negotiations will yield tangible benefits to bondholders or
when
it appears that discrimination against American bondholders is
threatened.
Bulgaria has demonstrated its willingness to honor its debts and
no
tective committee can remedy the transfer problem which confronts pro.
the
country. Up to the present time there has been no indication of discrimina•
tion against holders of Bulgarian dollar bonds.
The inability of Bulgaria to honor its external obligations
In full is due chiefly, the Institute finds, to exchange difficulties. The Institute adds:
Bulgaria, like many other debtor countries, is finding great difficulty in
obtaining the necessary foreign exchange with which to meet its external
obligations, and this inability to convert Bulgarian funds into the currencies
of the creditor countries is the major factor in the default on Bulgarian
dollar bonds outstanding in the United States. The transfer problem
arises chiefly from the cessation of foreign loans and
capital investments
and the withdrawal of funds previously invested in the country.
Although the balance of trade of Bulgaria was favorable in 1930 and
1931, this trade smiths has not been sufficient to balance the country's
International accounts, and during the first five months of 1932 imports
Volume 135
Financial Chronicle
exceeded exports. The gold and foreign exchange reserves of the central
bank have declined from $16,558,000 at the end of 1929 to $10,970,000
at July 23 1932. This reduction took place in spite of the sharp contraction
In imports and rigid restrictions on transactions in foreign exchange.
The exchange situation became so serious that in January 1932 the
Bulgarian Government declared it would be unable to continue to meet Its
foreign obligations without financial assistance from abroad, or concessions on the part of creditors. The Financial Committee of the League of
Nations made a careful study of the economic and financial situation of
Bulgaria and recommended in its quarterly report to the Council of the
League, dated March 29 1982, that transfers of funds for payment of
service on the external public debt should be reduced by 50% during the
six months April-September 1932. A special meeting of the League
Council was held in April to consider the report of the Financial Committee,
but no action was taken either at this meeting or at the regular session
In May.
The total public debt of Bulgaria on March 31 1932
amounted to $167,085,000, or about $27.50 per capita, the
Institute reports, and the full debt service currently requires
about 26.5% of the total revenues of the Government. The
Institute notes that the two so-called League loans are
secured by pledge of certain revenues the yield of which is,
In both Instances, much larger than the amount required for
the debt service.
American Holders of Defaulted Bonds of Greek
Government Urged by Institute of International
Finance to Postpone Formation of Bondholders'
Protective Committee.
The Institute of International Finance, through its Director, John T. Madden, Dean of the School of Commerce, Accounts and Finance, New York University, issued a bulletin
on Sept. 9 advising American holders of defaulted bonds
of the Greek Government to postpone formation of a bondholders' protective committee until after the meeting of the
League Council this month. The Institute calls attention
to the fact that two issues of Greek Government bonds have
been publicly offered in the United States, of which $26,942,500 are outstanding. On May 2 1932 it was announced
by Speyer & Co.. fiscal agents for the American portion of
the Refugee Loan- of 1924, that funds for the May 1 coupons
had not been received and the Aug. 1 1932 interest and sinking fund payment on the Stabilization and Refugee Loan of
1928 was not made. The bulletin says:
The suspension of sinking fund operations and the
postponement of
interest payments in foreign currencies on the external debt of Greece
is due
primarily to the acute transfer problem with which that country
is
confronted.
Normally, the earnings of the Greek merchant marine, emigrants' remittances and tourists' expenditures, plus foreign loans and inv-etments, are
sufficient to offset the usual excess of imports as well as the interest on
the external debt.
However, since the beginning of the world-wide economic depression the
Greek balance of payments has become increasingly adverse; the invisible
credits have sharply decreased and there has been a complete cessation of
foreign loans and credits. The shrinkage in income from these sources
In the last year or two has been so drastic as to impair seriously
the
capacity of Greece to make payments in foreign currencies. In spite of
rigid restriction of foreign exchange transactions, the gold and gold exchange
reserve of the Bank of Greece has decreased from $89,080,000 at the end
of 1930 to $9,095,000 on June 30 1032.
In January 1032 the Greek Government and the Bank of Greece invited
the Financial Committee of the League of Nations to study the financial
position of Greece. The Financial Committee, in its report to the League
Council, dated March 29 1932, recommended:
(1) That sinking fund payments on the external debt should be suspended
for a period of one year, although payments should continue to he
deposited
In drachmas at the Bank of Greece, and
(2) That Greece be granted a new loan of not more than $10,000,000
with a maturity of not more than three to five years.
The failure to make provision for sinking fund payments on the external
debt is contrary to the recommendation of the Financial Committee in its
report to the League Council. The report states: "The Committee believes it to be of the highest importance both for the credit of Greece and
for the purpose of maintaining order in the public finances, which it
regards
as essential, that the budget should continue to contain provision
in
drachmas for the amortization of foreign debt. It thinks further that, as
In cases of other countries which have been forced to suspend transfer, it
is
not reasonable to expect foreign bondholders to accept an effective temporary suspension of their contractual amortization unless they can at least
be assured that proper provision is being made In local currency."
The long-term Greek loans outstanding in the United States are under
the supervision of the International Financial Commission and have been
Issued under the auspices of the League of Nations. In view of the successful
operation of the International Financial Commission since its establishment in 1898, it is reasonable to expect that it will be in a position to
protect the interests of bondholders and to arrange transfers of the debt
service whenever it Is possible to do so. Under these circumstances the
Institute is of the opinion that American bondholders would be well advised
to await the next meeting of the League Council in September 1932 before
taking any definite steps.
Greece Reported Seeking Loan to Bar Flight of Capital.
The following (Associated Press) from Stresa, Italy,
Sept. 10, is from the New York "Herald Tribune":
A warning that Greece must seek a new foreign loan to restore internal
credit and prevent the flight of what little capital is left in the country
was voiced by the Greek representative to-day before the financial commission of the Danubian conference.
Spokesmen for Greece, Astoria and Bulgaria tried to obtain priority for
discussion of the grave financial aspects of the troubles besetting their
respective nations.
2255
The economic and agrarian commission started a survey to determine the
precise quantities of cereals which can be exported from the agrarian nations
participating in the conference.
The purpose of the parley is to arrive at measures which may restore
prosperity to the Danubian nations, all of which have been hit very hard
by the depression.
Proposal for Payment on Greek Debt.
An announcement regarding negotiations in London looking toward the partial payment by Greece on its external
obligations was made by Speyer & Co. on Sept. 29. According to the announcement the Greek Government is proposing "to make payments amounting to 30% of the total
annual interest service on each of the respective loans during
the fiscal year 1931-33, such payments to be applied to the
first half-yearly or first two quarterly coupons of each loan
either already due or falling due in that fiscal year unless
already met. Speyer & Co. state:
If the plan suggested is carried out by the Greek Government. it would
result in the bondholders receiving cash equal to 60% of the May 1 1932.
coupon of the 7% refugee loan of 1924 and also 60% of the Aug. 1 1932.
coupon of the 6% stabilization loan of 1928 and interest bearing scrip for
the remaining 40% in each case. No definite arrangements have so far
been made in respect of future coupons, as the Greek Government proposes
to re-examine the situation in Nov. with the British League of Nations
Loans Committee.
The announcement in full by Speyer & Co. follows:
As a result of prolonged negotiations between the British Council of
Foreign Bondholders, the British League of Nations Loans Committee, and
representatives of the Greek Government, the following announcement has
recently been published in London:
"Representatives of the Council of Foreign Bondholders and the League
Loans Committee (London) have been holding conversations during the
last few days with Monsieur Varvaressos, the Greek Minister of Finance,
and Monsieur Mantzavinos, Director General of the Greek Treasury, relording the service of the Greek External Debt for the fiscal year 1932-1933.
The Greek representatives explained the economic and budgetary difficulties
of Greece in detail, and expressed the sincere desire of the Greek Government to do everything they possibly could for the Bondholders in the circumstances in which their country at present finds itself.
The Greek representatives explained that,'while they had instructions to
say that their Government recognized the full liability on their external
obligations, the Government was not at present in a position to furnish the
means necessary to provide the service of the Sinking Funds of their External Loans, and that they were convinced that they would not be able to
meet more than a limited amount of the interest charges on these loans
during the Greek Fiscal year ending 31st March 1933 as hereinafter stated.
The balance of the interest would constitute an obligation in foreign exchange
of the Greek Treasury; the form and terms of the interest-bearing scrip or
other documents to be issued in recognition of this obligation would be
fixed In the course of later negotiations.
In the present circumstances the Greek Government, as in earnest of their
endeavours to provide an equitable settlement for the Bondholders, were
prepared to make payments amounting to 30% of the total annual interest
service on each of the respective loans during the fiscal year 1932-1933. such
payments to be applied to the first half-yearly or first two quarterly coupons
of each loan either already due or falling due in that fiscal year unless already
met. For this purpose the Greek Government will forthwith place the
necessary sums in foreign exchange at the disposal of the Paying Bankers.
through the appropriate channels, for distribution as stated.
The parties to the discussions agreed that in all the circumstances it
would be necessary to meet again in November next, when half the current
Greek Fiscal year will have elapsed, in order to re-examine the financial
and economic position of the country with a view to ascertain the capacity
of Greece to make further payments In respect of the interest charges maturing during the fiscal year 1932-1933.
After careful examination the representatives of the Council of Foreign
Bondholders and of the League Loans Committee consider that the Bondholders would be well advised to accept these arrangements. They have
agreed to recommend to His Majesty's Government that the Governments
represented on the International Financial Commission in Athens should
instruct that body to release to the Greek Treasury such sums as may be
considered appropriate."
Of the total of over £14,000,000 and $28,000,000 Bonds of the 7% and
6% Greek Government Refugee Loans of 1924 and 1928 issued here and
abroad under the auspices of the League of Nations, there were originally
placed in the United States. $21,000.000 Bonds. The American Bankers
have kept in touch with the London negotiations mentioned above.
If the plan suggested is carried out by the Greek Government, It would
result in the Bondholders receiving cash equal to 60% of the May 1 1932
coupon of the 7% Refugee Loan of 1924 and also 60% of the Aug. 1 1932
coupon of the 6% Stabilization Loan of 1928 and interest bearing scrip for
the remaining 40% in each case. No definite arrangements have so far
been made in respect of future coupons, as the Greek Government propose
to re-examine the situation in November with the British League of Nations
Mans Committee.
If the above plan is finally carried out, and the offer is made by the Greek
Government, due notice wig be given to American Bondholders through
the press.
City of Nizhni-Novgorod (Russia) Renamed "Maxim
Gorki" by the Soviet.
Under date of Sept. 26 Associated Press advices from
Moscow stated:
The great City of Nizhai-Novgorod. chief centre of navigation on the
Volga River and famous in medieval Russian history, has been renamed
"Maxim Gorki," for Soviet Russia's foremost man of letters," who was
born there.
The 40th anniversary of M. Gorki's literary activity was celebrated
yesterday.
The writer's pen name is also to be perpetuated in Moscow, replacing
Tverskaya as the name of the main street. (His real name is Aleksei
Pyeshkov.)
Joseph Stalin, leader of the Communist party, and Michael Kalinin,
President of the Soviet Union, sat on the stage in the Moscow Opera House
yesterday while honors were:heaped on Gorki. The writer received the
Order of Lenin.
2256
Financial Chronicle
Oct. 1
1932
Turkish Linguistic Congress Meets to Pave Way to
Reform Turkish Language.
The following wireless message from Istanbul, Turkey,
Sept. 26, is from the New York "Times":
Bank of Chile Authorizes Use of 10,000,000 Gold Pesos
for Purchases of Necessities from Abroad.
On Sept. 26 an announcement issued by the Department
of Commerce at Washington said:
The Turkish Linguistic Congress formally opened this afternoon In the
Dolmabagtche Palace and officers were elected.
Since the Gazi has introduced European instead of Arabic characters,
he has continued to study plans for reform of the Turkish language and
the purpose of the present Congress is to decide on the general principles
for sweeping changes.
At present Turkish is a mixture of Arabic, Persian and Turkish words
and is difficult to master. The Gazi's aim is to simplify the language by
reverting to pure Turkish and excluding Arabic and Persian.
The Central Bank of Chile has aqthorized the use of 10,000,000 gold
pesos to be used for the foreign purchase of necessities, according to a
cablegram, Saturday.(Sept. 24) to the Commerce Department from Commercial Attache R. H. Ackerman, Santiago. Foreign exchange restrictions
have curtailed imports of many products.
The government reports August exports of 30,000,000 pesos and imports
at 12,000,000 pesos. Nitrate shipments in August amounted to 1,500
tons and copper bar shipments totaled 7,200 tons.
Private Food Trade Abolished in Russia—Soviet Ends
System of Peasant Sales—Meat Collections to Be
as Rigid as Taxes—Shortage Said to Have Caused
Move.
Stating that the Kremlin has decided upon a strong
forward policy regarding the Soviet food difficulties, Walter
Duranty, in a wireless message Sept. 24 from Moscow to
the New York "Times" added:
Two decrees published to-day mark the abandonment of the "Rightward
swing" inaugurated by the measure adopted early in the summer.
' The new step is a reversion to a reinforced system of State food collections
as opposed to allowing peasant producers to conduct private trade. As
Lenin found in the months preceding the formal introduction of the new
economic policy in the summer of 1921. private trade without private
traders is an anomaly.
Stalin Revokes Private Trade.
The circumstances then were such that he was forced to take a "backward" step, from a Bolshevist point of view. Faced with the same anomaly. Joseph Stalin moves forward and revokes private trade—for that is
what to-day's measures come to, though they do not say so expressly.
One decree, issued by the Council of Labor and Defense, of which Stalin
Is a member, abolishes the decree issued earlier in the summer which released peasants in a fifty-kilometer radius of the principal cities from State
food collections, except grain, with the idea that they would sell their own
produce in the markets instead.
To make its meaning clear the new decree is reinforced by an order from
the Moscow Provincial Soviet, which declares that summer relaxation has
been abolished because it was "used for speculation in foodstuffs." In
other words, private trade inevitably brought private traders, or middlemen, to say nothing of slick peasants withholding their supplies until
prices soared.
For weeks it looked as if a new NEP might be on the way despite the
denials of Kremlin spokesmen. To-day's decisions show the opposite.
Decree on Meat Collections.
The second decree, signed by Stalin and Premier Molotoff, at first sight
appears to be simply what the preamble states—"a means of regulating
and facilitating State meat collections in the reduced quantities fixed in
the decree of May 10," which raised the proportion of meat to be collected
from State cattle ranches but lowered the proportion from collective and
Individual farms.
But additional clauses of the new decree say that the collections will
"have the force of tax obligations," and that non-delivery will be punished
by a fine to make the "collections" virtually "requisitions."
If the system of general food collections in the suburban areas, as reinstituted by the Council of Labor and Defense, carries•a similar proviso,
as may well be the case, the result will be something equivalent on a modified
scale to the food tax policy of the militant Communist period, which failed
through the weakness in distribution and the shortage of consumers' goods,
both consequent of the civil war. The chances of a similar policy are now
Incomparably better, but it is a bold move.
Regarding the collection plan, Associated Press accounts
from Moscow on Sept. 24 said:
The shortage in meat resulted to-day in a Government edict under which
supplies will be collected from the whole peasantry under a system operated
In the same manner as taxation. For the next fifteen months every peasant
family must deliver to the Government at fixed prices a certain percentage
of the meat produced.
The decree subjects those who fail to complete their contracts to a monetary fine amounting to the market price of the undelivered meat. The
order was designed to prevent peasants from taking advantage of a recent
decree permitting them to sell their surplus production in private markets.
Its aim is to make it impossible for them to dispose of more than they
should at the expense of their Government contracts.
The decree, covering the period from Oct. 1 1932 to Jan. 1 1934. provides
that each individual peasant family must sell to the Government 88 to 110
pounds of meat, depending on the region, during the fifteen months. Each
collective farm family must sell 33 to 73 pounds, and those collective farms
dealing with livestock must pursue the following schedule: Dairy farms,
68 pounds of meat for every cow owned on Oct. 1; cattle farms, the same
standard: pig farms, 260 pounds for each sow; sheep farms, 22 pounds
for each ewe.
The collection periods are divided into fifths, providing for lower amounts
at the beginning and increasing them each subsequent fifth. When peasants
are unable to deliver beef, pork or mutton, the decree stipulates that they
may furnish chickens. The decree also increased from 130,000 to 300,000
tons the meat production assigned to State farms during the fifteen-month
period.
Another Government decree refused a petition of certain collective farms
which had asked the Government to supply grain seeds for next spring.
The decree held that all collective and individual farmers were responsible
for providing their own seed. It was the lack of seed this spring, caused
by the drouth of 1931, which prevented the planting of as large an acreage
this year as the Government had counted on.
1 Payment on Coupons of San Paulo Coffee
Realization Loan.
Speyer & Co. and J. Henry Schroder Trust Co. are paying
to-day, Oct. 1, coupons of the State of San Paulo 7% Coffee
Realization Loan and $1,750,000 bonds drawn for redemption at par.
Oct.
According to the "United States Daily" of Sept. 27, this
was said orally at the Department to be the first gold release
by Chile in many months. Its use was declared to mean a
further depletion of the gold stocks in Chile.
Notice of New York Stock Exchange Regarding Bonds
of Brazil Quoted Ex—Similar Notice As to Bonds
of United Kingdom of Great Britain and Ireland.
The following notices were issued yesterday (Sept. 23)
by the New York Stock Exchange:
NEW YORK STOCK EXCHANGE
Committee on Securities
United States of Brazil-63% External Sinking Fund Bonds
of 1926, due 1957, Interest.
Sept. 22 1932.
Notice having been received that the interest due Oct. 1 1932, on United
States of Brazil 634% external sinking fund bonds of 1926, due 1957, will
not be paid In cash but that provision has been made for payment in 20year funding bonds of 1931:
The Committee on Securities rules that beginning with transactions of
Saturday, Oct. 1 1932. the bonds shall be ex the Oct. 1 1932, coupon, and
to be a delivery must carry the April 11933, and subsequent coupons: also
That funding bonds or fractional certificates therefor received in payment
of coupons shall not be deliverable with the bonds.
ASHBEL GREEN, Secretary.
NEW YORK STOOK EXCHANGE
Committee on Securities
The United Kingdom of Great Britain and Northern Ireland
4% Funding Loan 1960-1990, Interest
Sept. 23 1932.
Notice having been received that the United Kingdom of Great Britain
and Northern Ireland 4% funding loan 1960-1990 will be quoted in London
ex the Nov. 1 1932, coupon on Sept. 27 1932:
The Committee on Securities rules that transactions made beginning
Tuesday, Sept. 27 1932,shall be ex the Nov. 11932, coupon; that beginning
Wednesday, Sept. 28 1932, said bonds to be a delivery on all contracts
theretofore made must carry the May 1 1933, and subsequent coupons;
and that in settlement of transactions made beginning Sept. 27 1932, and
prior to Nov. 1 1932, there shall be deducted from the contract price an
amount equal to the difference between the value of the coupon at $4.8665
per pound sterling and the accrued interest which otherwise would have been
paid by the purchaser.
ASHBEL GREEN, Secretary.
Various Governments Inquire Attitude of United
States Toward Recognition of Government of
Salvador.
Various governments have asked the Department of
State regarding its position as to the recognition of the new
Government of Salvador, it was stated orally Sept. 27, at
the Department of State, according to the "United States
Daily" of Sept. 28, which likewise said:
All of these have been informed of the Central American Treaties of 1923
by which the Central American governments undertake to prevent revolution by refusing recognition to revolutionary governments. The United
States has informed interested governments that it takes this position,
It was explained.
The Department also has been informed that various governments have
had various relations with the Salvadorean Government, which in some
cases might be interpreted as recognition. The Spanish Government has
signed a treaty with President Martinez,the Department has been informed,
while the British Government has sent a new charge d'affaires.
The position of the United States is that President Martinez can not be
recognized since as former Minister of War he came into office following a
revolution, It was stated.
Storm Crisis Shuts Bank in Puerto Rico—Territorially
Agricola, One of Oldest on Island, Closed by Exceptional Demands—Check Shows 197 Dead—
Beverley Names a Price Control Board—Farm
Board Flour to Aid.
A wireless message Sept. 29 to the New York "Times"
said:
The number of persons homeless in the storm area is 245,000, Governor
James R. Beverley said to-night. This is the first official statement of
the number without shelter since the storm struck Monday night [Sept. 261.
The known dead to-night total 212, while the injured exceed 2,000. The
number of both dead and injured will be increased, the Governor indicated.
Of the homeless fully half, according to officials reporting to the Governor, lost their homes completely as well as all their belongings except
what may be recovered from the hillsides. The other half may have foundation walls or parts of roofs left as bases for repairs or rebuilding.
The same paper reported the following Associated Press advices from San Juan Sept. 29:
Bank Forced to Close.
The Banco Territorial y Agricola de Puerto Rico, one of the oldest financial institutions of the island, closed its doors this afternoon with the ex-
Volume 135
Financial Chronicle
planation that exceptional demands as a result of the hurricane made the
step necessary.
Meanwhile, civil, military and Red Cross officials did their utmost to
provide storm sufferers with food, shelter and medical supplies
0. S. Graham, Managing Director of the bank, announced that the
closure was to protect depositors and that insular authorities had been
fully informed and had given their consent.
Territorial stockholders voted recently to merge with the newly formed
Banco de Puerto Rico, which has not yet commenced operations. The
Territorial has its main office in San Juan, with five branches at other
points. It is the depository for insular and municipal funds. . . .
United States District Judge Ira K. Wells, Chairman of a Price Control
Committee appointed by Governor James R. Beverley, announced to merchants through the Chamber of Commerce that the approval of his Committee must be obtained before the price of any essential commodity is
increased.
Judge Wells said the Federal grand jury would meet to-morrow to investigate the increase in the price of zinc roofing, which before the storm
sold at $4 a hundredweight and since has been raised to $12. Bakers will
be asked to reduce bread from 12 to 6 cents a pound. Gasoline companies
have been asked to lower their prices 5 cents from the prevailing 25 cents.
Ralph H. Buss, representing the Reconstruction Finance Corporation in
Washington, returned here by plane to-day and immediately conferred with
the Governor.
The following Washington account Sept. 29 is also from
the "Times":
The Red Cross made arrangements to-day to ship 5,000 barrels of flour,
made from Federal Farm Board wheat appropriated to the use of that organization by Congress, to the Puerto Rico hurricane sufferers. Toe consignment will leave New York Saturday aboard the Ponce of the New York and
Porto Rico Steamship Company, which has offered to transport it free of
charge.
President Hoover received a report on the hurricane in Puerto Rico in
a cablegram sent yesterday by Governor Beverley. Placing the known dead
yesterday at 134. Governor Beverley estimated that fatalities would amount
to 200. He placed the injured at 1,355 at the latest check. The cablegram
added that food would be needed for a few weeks.
Captain Antonio Silva, Manager of the Puerto Rico chapter at San Juan,
cabled the Red Cross here to-day the first detailed reports the organization
received.
"Incomplete reports of disaster," he said, "show 194 persons killed,
1,857 persons injured, 8.883 homes destroyed. 11,215 homes demaged,
75,000 persons temporarily homeless."
British Reported as Recognizing Regime in Salvador.
From the "Wall Street Journal" of Sept. 28, we take the
following (United Press) from Washington:
Despite objections by the State Department, Great Britain, it is learned
has recognized the revlutionary government of President Maximilliano
Martinez in El Salvador.
This action is considered by officials here as running counter to the
purpose of the non-recognition doctrine of 1923. confirmed in a treaty
among the five Central American powers and publicly endorsed by the
United States. It was designed to deprive revolutionists of the fruits of
violence by denying them diplomatic recognition.
British recognition is understood to have been prompted by its desire to
continue its commercial modus vIviendi with El Salvador. It would have
expired in September. The British also have an investment in Salvadorian
railroads to protect. Other powers were said to be interested in maintaining
good relations with Salvador to safeguard their markets there.
The United States, too, has investments worth $25.466,000 in El Salvador. Despite these, the State Department feels it necessary to withhold
ecognition from Martinez because of its treaty commitments.
Australian Dollar Bonds in Melbourne—Stock Exchange Authorizes Dealings in 12 Issues Quoted
on New York Stock Exchange.
The following from Sydney, is from the "Wall Street
Journal" of Sept. 24:
With a view to affording facilities for trading In Australian dollar bonds
issued in New York, a committee of the Stock Exchange of Melbourne has
decided to allow these securities to be included in its official quotations.
The following issues quoted on the New York Stock Exchange will be added
to the list of quotatable stocks in Melbourne:
Commonwealth 4%,1956; 5%, 1955; 5%, 1957. New South Wales
5%, 1957; 5%, 1958: Queensland 6%, 1947: 7%, 1941. City of Brisbane
5%. 1957; 5%,1958;6%,1950. City of Sydney 5%%,1955. Metropolitan
Water, Sewerage and Drainage Board.(Sydney) 55i%, 1950.
Bonds may be sold for "ordinary delivery" (within three days) or for
"New York delivery" which permits eight weeks before the buyer shall
be entitled to enforce delivery.
Settlements will be made in Australian currency at the fixed basis of $3
to the £1 Australian.
2257
2,154 persons who made returns reported incomes of $13,300
or more, it was stated.
Australia Plans to Form Seventh State—Minister of
Interior to Ask Self-Government for Untamed
Northern Territory.
From the New York "Times" of Sept. 25 we take the
following special correspondence from Sydney, Aug. 22:
The untamed Northern Territory, home of the roving blacks, alligators,
sugar cane and fever, will form the seventh State of Australia if the
Plans
of Archdale Parkhill, Commonwealth Minister of the Interior, meet Cabinet
approval here.
After touring the entire territory, Mr. Parkhill has just returned to
Canberra, the National Capital, primed with information for one of the
fights that have made him nationally famous as the man who gets his way.
His investigations have convinced him that this great tract of territory
should have self-government and that a beginning should be made withva
system of advisory councils. Thorough revision of leases to settlers ais
one of the desires of the Minister.
With approval of Mr. Parkhill's plan, considered here to be certain.
Northern Territory will become one of the smallest federated States in
the world in point of population and one of the largest in point of size.
The territory covers 523,000 square miles, or 335,000,000 acres, yet the
white population is only 3,000. The highest recorded population,including
Asiatics, is only 7.500. There are large numbers of aborigines.
Tropical vegetation flourishes with Malayan luxuriance, but agriculture
has made little progress. Rice, tobacco, cocoanuts and mangoes are
plentiful, while bananas, cotton and peanuts can be successfully raised
for market. There are 700,000 cattle and a mere 10,000 sheep in the
plains. The discovery that the flat lands can be used for sheep opens up
possibilities of a mighty addition to the Australia wool-raising industry.
There is little mining and no manufacturing.
Overseas trade of the territory last year was a mere £500,000, but trade
with the Commonwealth is much greater. Pearl-shell and cattle were
the principal exports.
Australians Ask Pay Rise—Trade Union Congress Also
Calls for End of Wage System.
In a Melbourne message Sept.23 to the New York "Times"
it was stated that the All-Australian Trade Union Congrets
has received and adopted a report from a special committee
declaring for social ownership of the means of life and the
abolition of the wage system, demanding a 30-hour week
and a 25% increase in wages and forbidding unions to approach wage-fixing tribunals without permission.
The message went on to say that Jock Garden, Secretary
of the Sydney Trades Hall, presenting the report, said that
organization would be necessary in prepraation for a general
strike. After an acrimonious discussion the report was approved.
German
Pacific
Mandate Urged if Japan Resigns
from League of Nations.
From Geneva, Sept. 25, a wireless message to the New
York "Times" said:
The latest repercussion from the German equality demand on the exittion caused by Japan's Manchurian policy toward the League of Nations
concerns the former German islands in the Pacific for which Japan received
a mandate. It is being suggested, apparently as a trial balloon, that if
Japan quits the League these strategic islands should be given back to
Germany as a mandate, providing she stays in the League.
Supporters of this idea believe that such a revision of the Treaty of
Versailles might salve the pride of the Germans, who could scarcely refuse
such a gift even if it were too dangerous to collect immediately.
At least one member of the Council believes that the 'United
States, u
one of the Allied Powers originally granting the mandate to Japan,
would
be entitled to a voice if the question of changing the mandatory
power
should arise.
Russian Recognition Denied to Manchukuo—But
Moscow Expresses Readiness to Let New State
Send a Consul-General There.
A cablegram, as follows, from Tokio, Sept. 26, is
from the
New York "Times":
The Nicaraguan Congress passed to-day a bill reducing the export duty
on all cabinet woods by more than 50%•
The purpose of the bill is to encourage exportation of woods, as the
depression and internal disorders have almost killed the lumber industry.
The bill also permits cutting of timber on government lands without
payment of any imposts.
The Soviet has declined to grant full recognition
to Manchukuo at
present, though in view of the close relationship of Manchukuo
to Siberia,
Manchukuo's consuls will be accepted in Siberia and a
Oonsul-General will
even be received in Moscow if the Changchun Government
desires.
Koki Hirota, the Japanese Ambassador to Moscow, who
departed for
Tokio yesterday, called on L. M. Karakhan, the Assistant
Foreign Corn.
missar, last Friday and received this answer, which
cannot but cause disappointMent here, to his query as to recognition.
The Russian refusal, according to newspapers here,
was courteously
conveyed. M. Karakhan said the Soviet had shown friendship
by allowing
the new State to establish consulates in Russian
territory, but intimated that
in view of the international situation, Russia was not
prepared to recognize
Manchukuo at present.
Income Tax Returns in India.
Sixty-one per cent. of the 318,516 persons filing income
tax returns in India for the fiscal year 1930-31 reported
incomes of $1,333 or less, according to a report to the Commerce Department from Trade Commissioner George C.
Howard, Calcutta, India. The Department on Sept. 24
added that official report showed that 33% of those returning statements had incomes of $800, or less, while only
of Japan's South Manchurian RR. Increase
3,000,000 Yen in Four Months.
Receipts of the Japanese-owned South Manchurian RR.
for the first four months of the present fiscal year, from
April to August, were 28,150,682 yen, compared with
25,114,157 yen for the same period last year, an increase
of 3,036,525 yen, it is stated in a report to the Commerce
Department from Assistant Trade Commissioner C. E. Chris-
Nicaragua Cuts Wood Tax—Congress Votes to Reduce
Export Levy to Assist Trade.
A radio message from Managua, Nicaragua, Sept. 26, is
quoted as follows from the New York "Times":
Receipts
Financial Chronicle
2258
topherson, Mukden, Manchuria.
Sept. 23, the Department said:
In making this known,
Passenger receipts for the period under review were 4,201,918 yen for
1932 compared with 2,802,164 yen for 1931, while freight receipts were
23,181,271 yen for 1932 compared with 21,611,650 yen for 1931, and
miscellaneous receipts 762,493 yen for 1932 compared with 700,343 yen
for 1931.
Increase in passenger traffic is due in part to the interruption of the
regular service on the Feng-Shan Railway, the northern half of the PiepingLiaoning Railway, which has resulted in a large share of the passenger
traffic which would normally come from China via Shanhaikwan being
routed via Dairen instead.
The South Manchurian has carried a much larger ammmt of cereals this
year than last, largely because of the interruption of traffic on the Chinese
Eastern Railway, which prevented shipment of cereals to Vladivostock and
greatly increased shipments southward to Dairen.
Interruption of service on the Feng-Shan Railway, and cancellation of
traffic agreements between the Feng-Shan, the Shen-Hai and the Ki-Hal
Railways, resulting in making these lines nothing more than feeders to the
South Manchurian, has also tended to increase revenues for the latter line,
it was /dated.
(Japanese yen equal to about 23c., United States.)
Sr
Japan to Get an Additional Outlet to the Sea from
Manchuria by Construction of Railroad.
The Department of Commerce at Washington stated on
Sept. 21 that an additional.outlet from Manchuria will be
secured by the Japanese, who are constructing the eastern
extension of the Kirin-Tunhua railway line, which will connect Tunhua with two North 'Chosen ports, Seishin and Yuki,
located on the Japan Sea, according to a report from Consul
John K. Davis, Seoul, Chosen, The Department added:
By thus developing an east-and-west railway across the heart of Manchuria,
the line will form another outlet for the rich central region of which
Changchun is the center, and by its connection with the new ports of
Seishin and Yuki it will provide Japan with a shorter trade route to
Manchuria.
The ocean distance between the new ports and Teuruga, an important
shipping point on the west coast of Japan, will be about 400 miles less than
the distance between Dairen and Kobe, and the overland haul from Changchun
will be shortened by about 40 miles.
The railway from Changchun through Kirin is now operating as far as
Tunhua, and work in the sections between the latter place and the present
Korean railway terminals to serve the two new ports is proceeding steadily.
Seishin harbor is large and has a maximum depth of about 60 feet, and
a minimum depth in all important parts of 20 feet. Tidal variation is only
two feet, and both ports are ice-free, it was stated.
New Japanese Bank Law—Capitalization Minimums
Effective in 1933 to Reduce Institutions from
1,420 to 600.
Under the above head the "Wall Street Journal" of Sept.
27 reported the following from Tokio:
-Efforts of politicians have failed to delay application of the new bank
law, which was forced through by Junnosuke Inouye, then Governor of
the Bank of Japan, following the financial panic of 1927. The law is
to become effective January 1 and banks which have not been able to
raise their paid capitalizations to the minimums set will lose their charters.
The law requires minimums of y. 2,000,000 in Osaka and Tokyo, y. 600,000
in the country and y. 1,000,000 elsewhere. The law gave the banks five
years to merge or attract new capital when it took effect (in all other
provisions) on January 1 1928.
At that time there were 617 unqualified banks. On August 22 of this
year there were but 107. Of these, 23 probably will be able to complete
arrangements to continue before the end of the year and 60 will wind
up. The remaining 24 are mostly involved in civil suits.
There will be fewer than 600 commercial banks in Japan when the year
ends, compared to 1,420 at the end of 1926, before the financial panic.
Debts Yen 2,096,919,000—Yen 114,
at Par Doubled by Fall of
Yen—Manchuria Rail Maturity in 1936.
From the "Wall Street Journal" of Sept. 23, we take the
following from Tokio:
Japanese Foreign
100,000 Annual Interest
Converted at par, Japanese borrowings abroad total y. 2,096,919,000
and create an annual interest burden of y. 114,100,000, according to
figures of the Finance Ministry for the end of July. With the yen below
25 cents the burden is more than doubled. Figures follow (all converted at par):
Annual interest.
Outstanding.
Yen.
Yen.
74.007.000
1,404.341.000
Government bonds
12.800.000
234.390.000
Municipal bonds
27.493,000
458.158,000
Corporation bonds.
114,100,000
2.096,919,000
Total
The nearest maturity among public bonds is 1936, when the assumed
South Manchuria Railway 4%s of 1911 fall due in London. The first
private issue to mature is the Daido Power 7% flotation of 1924. A
sinking fund was set up to retire the entire issue by maturity in 1944, however.
Most recent figures on holdings of the Japanese Government abroad are
for the end of May, when the total was y. 152,500.000 in deposits, phis
y. 96,336,000 in bonds in foreign currencies, mostly those of the Japanese
Government. Since then a foreign bond issue has been retired and the
June and July debt service payments made. These (with those in December and January) are the hem lest of the year.
- According to the Finance Ministry, which has obtained the information
under the powers granted it by the law to Prevent the Export of Capital,
Private holdings of bonds in foreign currencies totaled y. 705,925,000 at
the end of May, with y. 598,295,000 in this country. This is It minimum
figure, since the authorities suspect that the reports made so far are not
complete.
Oct. 1 1932
Retraction by Japanese-Owned Paper of Allegations
Against National City Bank of New York in Photographing Commercial Centres in Japan.
The following cablegram from Mnkden, Manchuria, Sept.
28, is from the New York "Times":
Retraction of a charge that the local branch of the National City Bank
of New York had "sinister" motives in buying photographs of Manchurian
activities was printed in a Japanese-owned paper to-day.
The United States consulate had protested to Japanese authorities over
the allegations.
An announcement by the State Department indicating that
the Japanese Government had attached no blame to the
bank in the matter was referred to in our issue of Sept. 24,
page 2084.
Assesses Duties on Products From China
Proper.
Under date of Sept. 27 the Department of Commerce at
Washington said:
Manchuria
Officials of the present administration in Manchuria, with effect from
September 25, will assess duties on products coming from China proper,
including Chinese and foreign goods, according to a radiogram from
Assistant Trade Commissioner Carl E. Christopherson, laukden. Consideration will be given goods shipped from foreign countries via China
proper prior to the above date, if duty is paid in China proper.
Shipments to Manchuria via Japan or direct to Dairen will be subject
only to duty in Manchuria.
Plans for Sale to China of Privately-Owned American
Wheat Considered by President Hoover—Question
of Financing by Reconstruction Finance Corporation—Grain Export Plan Proposed by Chicago
Board of Trade.
Acting on a proposalfrom China to buy 15,000,000 bushels
of wheat, President Hoover, according to the Washington
correspondent of the New York "Journal of Commerce"
on Sept. 25, summoned to the White House Secretary of
Agriculture Hyde and members of the Reconstruction
Finance Corporation and the Federal Farm Board to consider financing the deal. It is believed a fund of $8,000,000
will be necessary to finance the transaction, said the paper
indicated, which also had the following to say:
Consummation of the sale hinges upon financing it through the Reconstruction Finance Corporation or some other Government agency. This
would be the first time the Government relief agency has utilized the
provisions of the act to finance the sale ofsurplus farm commodities abroad.
If the financing can be arranged, Federal Farm Board agencies may
enter the wheat market to obtain the wheat for China, whose offer was
said to be on a sound basis with financing the only difficulty in the way.
Financing Being Sought.
The Farmers' National Grain Corporation, central marketing agency of
farmer co-operatives, agreed to supply the wheat if the Finance Corporation
would underwrite the loan. Members of the Finance Corporation were
somewhat skeptical of the security offered by China and hesitated to accept
the notes of the Chinese Government. The Farmers' National did not
believe it sould jeopardize the credit of member co-operatives
without
some agreement of the Finance Corporation or the Farm Board to
protect
them from loss. It is understood the Finance Corporation will
consider
further whether to extend the credit desired by wheat co-operatives.
Part of the wheat necessary to fill the Chinese order is held by co-opera-tives in the Northwest. How much wheat would have to be
bought. if
the deal is closed, was not determined.
White House conferees were agreed that the Chinese deal, if consummated, would send up the price of wheat, possibly more than 10
cents a
bushel. Administration spokesmen expressed the hope that the
financial
arrangements could be made. The deal has been under consideration by
the Farmers' National Grain Corporation for about a week.
Deal Year Ago Recalled.
About a year ago China bought a similar amount of wheat. The
Farm
Board took notes for payment which are not yet due. The Chinese
Government has put aside funds to pay the notes when due and has
fulfilled
all other parts of its contract. it was said to-night.
The Farm Board has virtually no cash wheat left. A short time
ago it
announced that 3.000.000 bushels of stabilization wheat was yet to
be
sold. Since then, it is understood, practically all of that has
disappeared.
The only help the Farm Board could give on the Chinese deal
would be
to underwrite a part of the loan to the Farmers' National from the
former's
badly depleted treasury.
As the White House conference was exploring the possibilities of
financing
the Chinese wheat deal, a "farmers' march on Washington" to
press demands for agricultural relief soon after Congress meets was
developing.
The projected invasion is described as an outgrowth of the
Midwest farm
strike.
According to those in charge of the movement in Washington,
plans
already are well advanced with organizing begun in seven States for
the
gathering which is called "the Farmers' National Relief
Conference."
Several hundred spokesmen for "dirt farmers" are expected to
attend
the conference which has been summoned to meet Dec. 7, two
days after
Congress convenes for the short session.
From Washington, Sept. 26, a dispatch to the New York
"Times" stated:
Uncertainty as to the authority of the Reconstruction Finance
Corporation to make an 38.000,000 loan directly to China to enable the
sale of
15.000.000 bushels of privately owned American wheat was apparent in
government circles to-day following yesterday's conference at the White
House between President Hoover and administrative officials.
While the legal division of the R. F. C. was studying the law affecting
the deal. It was indicated to-day that the corporation would prefer not
to
accept directly the notes of the Chinese National Government as collateral
security and would like to have the loan underwritten by American interests.
Original plans were that the Farmers National Grain Corporation, as
a
buying and selling agent, should guarantee the loan, but it was
reported
Voluine 135
Financial Chronicle
to be opposed to this procedure. It was said that the Farm Board affiliate,
with a capital and surplus of only 14,000,000, could ill afford to guarantee
repayment.
Ogden L. Mills, Secretary of the Treasury, speaking as a member of
the R. F. C., said he had no doubt of its authority to make the loan, giving
the opinion that the part of the reconstruction legislation dealing with the
export of surplus agricultural commodities was written by Congress with
foreign loans in mind.
Pointing out that the Chinese Government usually had been prompt in
meeting obligations here, Secretary Mills appeared to favor a direct loan.
He believed that the proposal would be brought before the R. F.0. board
of directors within a day or two.
On Sept. 26 Associated Press accounts from Shanghai
ha.d the following to say:
The sale of 15,000.000 bushels of American wheat or flour to China, a
deal involving about $9.000,000 in gold, appeared practically assured
to-day as negotiations between the Chinese Government and the Federal
Farm Board, begun in June, seemed to be nearing a conclusion.
The arra: gement is understood to provide for the purchase by the National
Government of at least 15,000.000 bushels in the grain or in flour, with a
three-year credit, the payment to be made during the years 1937 to 1939,
inclusive, with interest at 4% from the date of signing the contract.
In Associated Press advices from Washington Sept. 28
it was stated that the Reconstruction Finance Corporation
is awaiting a legal opinion on the proposed loan to China
for the proposed wheat purchase. These advices added:
It was stated that the Board, which conferred at the White House last
Sunday on the subject is disposed to make the loan if It is found to be legal.
An early opinion from the attorney is expected.
It also was said that whether the sale would depress the world's market
must be considered. The law under which the loan would be made, it
was said, appears on the surface to be clear enough to permit such a loan,
but nothing can be done until research discloses the complete legal phase
of the situation.
Much of the wheat that would be sold is held privately. All of it, it is
understood here, is Northwestern hard wheat.
The following further reports are from the "Times"
Washington advices, Sept. 29:
A huge export project whereby the Reconstruction Finance Corporation
would help to facilitate the sale abroad of American grain was urged upon
President Hoover to-day by representatives of the Chicago Board of Trade.
The project, if carried out, would provide the Immediate sale to China
of 12.000.000 to 15,000.000 bushels of American wheat, which is now being
considered by the administration, and in addition the sale to Europe of
large consignments of grain, chiefly corn.
The President heard the proposals advanced by the Chicagoans at a
White House conference. He was told that corn could be sold to European
countries for cattle feeding if they were not obliged to make immediate
payment. In this connection it was suggested that the Reconstruction
Finance Corporation play its part with loans.
The Finance Corporation let it be known that very serious consideration
was being given to the proposal to finance the Chinese wheat deal.
An
investigation of the legality of the transaction was nearing completion
and the directors were merely awaiting the report before proceeding further.
Would Take Chinese Bonds.
The proposal for the Chinese sale, coming from within the administration, specifics the sale of 12,000.000 to 15,000,000 bushels of privately
owned hard Winter wheat on long-term credit, to be evidenced by bonds
of the National Government of China. These bonds would be taken by the
Finance Corporation. The farmer, according to theory, would reap a
reward of higher prices.
Alberta Wheat Pool Sells Wheat to China.
Associated Press advices from Calgary, Alta., Sept. 26
stated:
Reports that American farmers were trying to finance the sale of 15.000,000 bushels of wheat to China were followed to-night with an announcement
that the Alberta Wheat Pool had sold more than 500,000 bushels to China
in the past week.
It was indicated that all sales would be on a cash basis unless the Dominion Government cared to take the initiative in arranging credit.
Chicago Board of Trade Files Brief Appealing from
Federal Commission's Ruling Incident to Exclusion
of Farmers' National Grain Corporation from
Board's Clearing House Privileges.
On Sept. 27 the Chicago Board of Trade filed a brief,
setting forth its appeal from a ruling of a Commission of
Cabinet Officers created under the Grain Futures Act which
ordered the Board either to admit the Farmers' National
Grain Corporation to full trading privileges or close for
60 days. Items regarding the Federal Commission's ruling
appeared in our issue of July 30, pages 715 to 717 and
Aug. 20, page 1250. Regarding the Board's appeal an
Associated Press dispatch from Chicago, Sept. 27, published
in the New York "Herald Tribune" said:
The appeal, filed In the United States Circuit Court of Appeals, is scheduled for oral arguments before the Appellate Court on Oct. 21. The
suspension order against the Board is not effective so long as the case is in
the Courts.
The order In favor of the Farmers' National Grain Corporation—a cooperative grain-trading organization, sponsored by the Federal Farm Board
—was issued two months ago by a Commission composed of the Secretary
of Agriculture. the Secretary of Commerce and the Attorney General of
the United States.
Hyde Pictured in Dual Role.
Denying that the Commission had jurisdiction in the case. the Board's
appeal brief called the attention of the Appellate Court to what it called
"the anomalous position" of Arthur M. Hyde, Secretary of Agriculture, in
Use case.
It declared that such litigation—Involving a dispute between the Secretary of Agriculture and the Board 'of Trade—should be handled by a
2259
"court of competent jurisdiction" instead of the Secretary, who is a party
to the suit.
Other allegations made in the appeal brief are that the Farmers National
was not entitled under the Federal Grain Futures Act to full trading privileges, that the order to admit the trading corporation was premature, and
that the corporation gave insufficient evidence of financial stability in
applying for full privileges.
The appeal brief set forth that when the Commission's order was made the
Board of Trade was engaged in investigating the affairs of the Farmers National to determine whether clearing house privileges should be granted,
and that refusal by the Farmers National to furnish information when
ordered to do so by the Board of Trade Directors violated the Board's rules
and warranted refusal to grant the privileges.
Legality of Body Questioned.
"The Farmers National was not entitled to membership in the Clearing
Corporation under the Grain Futures Act," the brief asserts, "because:
"(A)—The Farmers National was not, or was not shown to be, a lawfully
conducted co-operative; it dealt 'in the products of non-members to an
amount greater in value than such as are handled by it for members' contrary to the Capper-Volstead Act;
"(B)—It was not, or was not sworn to be, a 'lawfully formed and conducted co-operative associa ion of producers.'
"(C)—It had not, or was not shown to have,'adequate financial responsibilltr'
"(D)—It did not comply with 'such terms and conditions as are imposed
lawfully on other members of' the Board of Trade."
The appeal also declares that Section 6 of the Grain Futures Act, under
which the Farmers National Insists itself eligible for full trading Privileges.
is unconstitutional.
President Whitney of New York Stock Exchange
Answers Criticisms of Pools—Says Those Operating
in Orderly Manner Do Not Exert Improper Influence on Prices—Indicates Intention to Prohibit
Activities by Specialists in Pools Which Might
Unfairly Influence the Specialist.
"The New York Stock Exchange" served as the title of
an address by Richard Whitney, President of the Exchange,
delivered before the Industrial Club of St. Louis and the
Chamber of Commerce of St. Louis, at St. Louis, on Sept. 27.
The address was broadcast over the nation-wide network of
the National Broadcasting Co. In a dispatch from St. Louis
to the New York "Journal of Commerce," it was stated that
Mr. Whitney's address revealed for the first time that the
Governing Committee may soon enact a rule which will place
a rigid prohibition over participation by specialists in pool
operations, preventing them from utilizing their information
as to the state of the market for their own particular benefit.
The same account noted that the important points stressed
by Mr. Whitney in his address were:
1. The Exchange is planning, in co-operation with publishers, to restrict
the publication of material calculated to bring about unwarranted price
changes in listed securities.
2. The Exchange will continue to follow a policy of withholding listing
privileges from securities of companies where corporate officials are guilty
of unethical conduct. On occasion, this has resulted in the removal "of
men who had proved unworthy," Mr. Whitney pointed out,
3. Specialists and their firma will not be permitted to participate in
pool operations.
In his address Mr. Whitney said:
The very existence of a great security market depends upon three essentials. The first is that the securities dealt in much be those of bona fide
companies and must be genuine; the second is that fictitious transactions
creating false values shall not take place, and the third is that the brokers
and members of the Exchange must be honest and financially responsible.
Let us consider these essentials and the regulations which the Exchange
has adopted in order to insure their maintenance.
•
In part, he continued:
As I have said, the securities dealt in on the Exchange must be not only
genuine themselves, but must represent an interest in genuine companies.
The Stock Exchange has established a list of securities in which its members may deal and only securities admitted to this list are quoted and
traded in on the Exchange. No security is admitted to the list until the
issuing company has submitted detailed information not only as to its
financial affairs but also as to its business history. This information,
which is in the form of a listing application, is first examined by experts
and then considered by the Committee on Stock List, which, Pit approves,
recommends the application to the Governing Committee for final action.
In order to secure the approval of the Stock List Committee, the applicant
company must prove that it has substantial assets or earning power, or
both. It must also show that it has been in operation for a reasonable
period of time. In the ease of new companies arising out of mergers or
consolidations, the history of the component parts enables the Committee
to determine whether the new company should be listed or not. Companies
must also satisfy the Committee that their management is composed of
men Of reputation.
The financial statements of any company seeking to list its securities
are examined in detail, and In moat instances the Committee requires that
they be accompanied by the certificate of independent auditors. This is
not enforced in every case because there are many companies whose financial
statements are either supervised by public authorities or whose business is
so widespread that independent audits are impracticable. While other
exceptions are made in regard to audited reports, they are not numerous,
and the Exchange in recent years has been insisting more and more upon
the necessity of independent auditors. All this detailed information in
regard to the company is printed in the listing application which is widely
distributed and available to the public. The Stock Exchange cannot
guarantee the value of the securities which it lists, but it does undertake
to see that each applicant company furnishes sufficient information so that
all who are interested can inform themselves as to the past and present
history of the business.
We realize that the information furnished by a company at the time of
listing must thereafter be kept up to date, and we therefore require each
applicant to agree to furnish current information to stockholders and
investors. We feel that annual statements are not sufficient, and for many
2260
Financial Chronicle
years we have been urging all companies to make more frequent and
preferably quarterly reports to stockholders. There are 1,108 American
companies which have stock listed on the Exchange; of these, 730 publish
statements quarterly or more often; 160 publish statements more than
once a year, and 308 publish only annual statements. The Stock Exchange
cannot insist upon quarterly reports in every case. As the activities of
some companies cover the entire world, a compilation of complete financial
data requires many months, and in such cases quarterly reports would be
valueless. In some cases the final cost of raw material cannot be determined until the close of the fiscal year, and for this reason publication of
quarterly statements is impossible. In some businesses accurate reports
cannot be made without taking a physical inventory which would necessitate
an entire or partial shutdown. The cost of such inventories is prohibitive,
and quarterly statements without them would be misleading and
objectionable.
I cannot hope in the time at my disposal to touch on all the rules which
the Exchange has adopted for the protection of the public in regard to
listed securities, but there are others worthy of mention. . . .
As new types of business develop we examine them, and if our existing
rules in regard to the amount and nature of information which must be
furnished as a condition of listing do not seem adequate to meet the situation. we adopt new requirements. For example, a few years ago, when it
appeared that shares of foreign companies were being bought and sold in
this country in large volume, the Exchange, after careful investigation,
adopted special requirements for the listing of foreign stocks. Only a few
companies were able or willing to meet the conditions which these special
requirements imposed. It is interesting to note that no other Exchange
has even adopted such extensive protective requirements in listing foreign
shares as has the New York Stock Exchange.
When management investment trusts suddenly became popular, the Exchange refused to list them until it had investigated this new development
and formulated a special set of requirements. Our investigation showed
that investors might easily be misled unless these companies gave full
publicity to their affairs. We required, therefore, all listed investment
trusts to publish full details of their portfolios. This requirement met
with strenuous opposition. We were advised by persons connected with
some of the largest and most important trusts that it was impossible to
give complete information about their investments. I am glad to say that
the judgment of the Exchange in this regard has been completely vindicated.
The standard of full publicity which the Exchange initiated has become
the general practice.
In like manner, when fixed investment trusts became a popular medium
of investment less than two years ago, the Stock Exchange, realizing that
this new method of security distribution could be gravely abused by
unscrupulous persons, refused to allow its members to be associated with
any fixed investment trust which did not meet the standards established
by our Stock List Committee. These standards were predicated on the
belief that publicity was the best protection for the public, and in this
instance, as in the case of management investment trusts, the requirements
of the Stock Exchange, which were criticized at first, gradually became
a practice which all chose to follow.
"Package" Sales.
Even more recently the so-called "package" plans of security distribution were devised. After investigation, the Stock Exchange concluded that
the possible abuses of these new selling methods were so great that its
members should not participate in them except on conditions which would
safeguard investors, and regulations to this end were accordingly adopted.
This action by the Exchange has also met with opposition. Suits have
been brought against the Exchange and a temporary injunction preventing
it from carrying out its regulation has been granted pending a final
adjudication. . . .
Pool Operations.
There has been a great deal of criticism in recent years about pool
operations on the Exchange, and the inference has been left in the minds
of the public that these pools create false prices. All pools are not evil
by any means. There are pools which are organized for the perfectly
proper purpose of merchandising sound securities. There are trading pools
which buy and sell stock in an orderly manner, and which do not exert
any improper influence on prices. There have been, of course, nefarious
pools where large purchases were made in anticipation of the publication
of unduly optimistic or other unwarranted statements about the company's
prospects. The Exchange has consistently opposed operations of this kir '.
We feel that they are a form of fraud which should be prevented. There
is no justification for the publication of a false statement in regard to
company affairs, and I am confident the laws of our several States have
adequate provisions to punish those who are guilty of such acts.
Although pools in and of themselves are not necessarily evil, the
Exchange recognizes that the existence of very large pools, and particularly
pools in which company officials participate, may induce breaches of trust.
Because a few officials have yielded to temptation, a belief has grown
up that many company officials have participated in transactions of thia
kind. This belief is in no way justified. In only a very few cases has it
been shown that officers of companies have deliberately issued false statements in the hope of making personal profit. Some corporate officials
have been false to their trust and have put their personal advantage above
their duty to stockholders. The Exchange deeply deplores this fact. It
cannot, however, directly prevent such practices because officers of listed
companies are not subject to control by the Exchange. In a number of
cases where corporate officials have been guilty of unethical conduct, the
Exchange has taken the position that it will not list new stock or bond
issues except on condition that the offending officials retire from the
company. On one or two occasions we have been able to use this power
to compel the removal of men who had proved unworthy. We shall continue
this policy.
The real remedy for this evil lies not with the Exchange, but with
stockholders. They have the power to remove any official who has been
guilty of unethical conduct, and their exercise of this power will eliminate
the few individuals who, for personal profit, have misused the information
which came to them because of their position.
There are, of course, many other influences which may unfairly affect the
price of securities. For instance, false rumors may cause undue buying
or selling which in turn will bring about a rise or decline in price. The
Exchange has long recognized the danger of rumors and gossip. Our
rules provide that the spreading of rumors is contrary to the best interest
and welfare of the Exchange, and members violating this rule are subject
to discipline. As far as gossip is concerned, the Exchange requires that
all publicly distributed market letters and wire messages be confined strictly
to business matters.
Inspired news articles, like rumors, may bring about unwarranted price
changes. The deliberate publication of false statements is a fraud upon the
public, and If any member of the Exchange should be found guilty of
seeking this type of publicity through the payment of money or otherwise,
Oct. 1 1932
he certainly would be expelled. We are to-day considering a new regulation which, with the co-operation of the publishers of OUT great newspapers,
will minimize the possibility of such frauds.
Any method of stimulating public interest in buying and selling securities
may, if used to excess, result in creating unwarranted prices. The Exchange has for many years recognized this fact and has taken measures to
prevent excessive publicity or the use of unfair selling methods. All
advertisements, except the usual business card announcing the name and
business of the member firm, must be submitted to the Committee on
Business Conduct for its approval. We have prohibited members from
using advertising or radio campaigns as a means of stimulating public
interest in speculation. We have forbidden the payment of commissions
to customers' men on speculative or margin accounts. We have imposed
other restrictions upon customers' men. Before they can be employed by a
member firm they must apply for approval to our Committee on Quotations
and Commissions. Detailed information in regard to their past history
is secured, and complete records are kept so as to prevent any salesman
who has been guilty of improper methods securing employment with
members of the Exchange. The Exchange recognizes that in spite of all
its efforts some customers' men have used their position to urge their clients
to excessive speculation and have failed to live up to the standards established by the Exchange. Whenever abuses of this kind are discovered, we
take steps not only to prevent their repetition but also, in so far as it lies
in the power of the Exchange, to punish the offender.
These various rules have been adopted to prevent unfair influences on
the market regardless of any effect they may have on the volume of business. We have felt that it was far more important to maintain a free and
open market than to secure additional business for our members.
The third necessity of a great market is that brokers must be honest
and financially responsible. We have refused to allow our members to
put their personal interests above that of their customers. We have
insisted that they are brokers and must render to their customers service
of the same standard that the law requires of fiduciaries. Under our rules,
an order from a customer, once accepted, prevents a member from executing
similar orders for his own account until the customer's transaction is
completed. In like manner members may not make use of information which
they have received in their fiduciary capacity for their own advantage.
These principles apply not only to members who are acting as brokers
for customers, but also to specialists, who, of course, are acting as subbrokers. There is a common but mistaken belief that specialists use for
their own advantage the information which comes to them as a result of
their business. The rules of the Exchange provide that a specialist may
not purchase stock for his own account when he has an order to buy for a
customer, nor may he take stock for his own account from persons who
have entrusted selling orders to him unless the price is justified by the
market, and he has openly offered in the market the stock which he
Intends to take for his own account and thereafter has confirmed the
transaction with the customer's broker. The same rule also applies on sales
by a specialist. The rigid enforcement of these rules is insured not only
by the constant supervision of the officials of the Exchange, but also by
the vigilance of the members of the Exchange who have entrusted orders to
the specialists. What most people forget is that the members of the
Exchange who give orders to specialists are themselves fundamentally
Interested in seeing that these orders are fairly and properly executed.
If any transaction of a specialist appears to be in the least unusual, the
member of the Exchange who gave him the order will bring the transaction
to the attention of a governor of the Exchange. It is then investigated,
and if it is found that the specialist has taken any unfair advantage of
his position, he is punished.
While we realize that the very nature of the specialist's work gives him
an opportunity to take personal advantage of confidential information, we
are able to prevent abuse of this power, by our existing rules or new rules
adopted from time to time. When it recently appeared that participation
in pools or the receipt of options in connection with pool operations might
unfairly influence a specialist in the conduct of his business, the matter
was promptly taken up and the Committee on Odd Lots and Specialists has
recommended, and I am confident the Governing Committee shortly will
enact, a new rule which will prohibit any such activities by specialists,
their partners, or even by their firms. I have referred at length to possible
anuses by specialists because this subject has been so much misunderstood.
The specialists of the Exchange perform a vitally necessary function, and
the public, in criticizing them, overlooks the service which they are rendermg to the market, and the fact that only in rare instances have they
proved unworthy of the position of confidence which they occupy.
The Exchange instituted its questionnaire system in 1922 in order to
Inquire into the financial responsibility of its members. At least twice a
year, each member carrying margin accounts for customers must make a
detailed financial report to the Exchange. These reports are prepared by
accountants and are accompanied not only by their certificate but also by a
statement from every member of the reporting firni that the report is
accurate. When the questionnaire answers are received by the Exchange,
they are carefully examined by our accounting department. In addition,
auditors employed by the Exchange visit, from time to time, the offices
of members and examine their books in detail. The number of auditors
thus employed has been constantly increased and the supervision of the
financial condition of members has become more and more effective. The
very small number of insolvencies among members of the Exchange during
the last three years is the best proof of the success of the questionnaire
system. We are proud of the record which members of the Exchange
have made in this regard during the years of panic and depression, but
we do not intend to relax our efforts, and I am hopeful that the
methods
of financial supervision may be gradually improved so that ultimately the
failure of a member of the Exchange will be next to impossible.
Governing Committee of New York Stock Exchange
Adopts Amendment Curbing Specialists in Pool
Operations.
The Governing Committee of the New York Stock Exchange on Sept. 29 adopted an amendment to the Constitution of the Exchange prohibiting specialists or their
partners from engaging in pool operations in any stocks in
which the specialist handles the books, and has also prohibited the specialists' firms from dealing in options in such
stocks. This was in accordance with the announcement
made by President Whitney in his St. Louis speech this week.
The New York "Journal of Commerce" yesterday (Sept. 30)
said a letter to Stock Exchange members from the Secretary
said that the rules were being amended by the addition of a
Financial Chronicle
Volume 135
new section to be known as Section? of Chapter XIV,reading as follows:
"No member acting as a specialist and no partner of such a member and
no firm in which such a member is a general or special partner shall, directly
or indirectly, be interested in a pool dealing or trading in the stock in which
such a member is a specialist, nor shall any such member, partner or firm,
directly or indirectly, acquire or grant, in connection with a pool operation,
an option to buy or sell or to receive or deliver shares of the stock in which
such a member is a specialist."
List of Matured Bonds Issued by New York Stock
Exchange-Will be Removed by Committee on
Stock List Under New Ruling.
Following its intention to remove from its list such bond
issues which have either matured or been declared due and
payable, (as was mentioned in a circular issued by the
Exchange, Aug. 31, and referred to in these columns of
Sept. 3, page 1585) the New York Stock Exchange issued the
following notice on Sept.24:
NEW YORK STOCK EXCHANGE
Committee on Stock List-Important Notice.
Sept. 24 1932.
Reference is made to Circular C-4989 of Aug. 31 1932, in which it was
stated that commencing on Nov. 1 1932, the Committee on Stock List will
remove from the list such bonds as, according to the information in possession of the Exchange, may then have matured, unless in any particular case
said committee shall determine that facts exist warranting the retention of
such matured securities on the list.
The following is a list of such matured bonds or other obligations which
have matured either by expiration of time or by some act accelerating the
date of maturity. This list includes only such issues concerning which
advices have already been received from the trustees.
Matured Bonds.
(List includes registered as well as bearer denominations but not stamped
series unless specifically stated).
Bonds matured by reaching maturity date1. National RR.of Mexico prior lien gold 43.s due Oct. 1 1926.
2. Seaboard & Roanoke RR.Co.frist extended 5s, 1931.
3. Bolivia Ry. Co. first mortgage 5s due 1927.
4. Central Foundry Co. first mortgage sinking fund gold 6s due 1931.
5. Chicago Rye. first mortgage 58 due 1927, stamped as to 20% Partial
redemption and payment Aug. 1 1932 interest.
6. Chicago City & Connecting Rys. coll. gold 55 due 1927.
7. Interborough Rapid Transit Corp. secured cony. 7% gold notes.
Sept. 1 1932.
Bonds whose principal amount has been declared due and payable by
action of trustee or otherwise,
1. Chicago & Alton Ry. 1st lien gold 3s 1950.
2. Des Moines & Fort Dodge RR.1st gtd. gold 45 1935.
3. Iowa Central 1st gold 5s 1938.
4. Minneapolis & St. Louis 1st cons. gold 55 1934.
5. Seaboard Air Line Ry. 1st gold 4s 1950.
6. Seaboard Air Line Ry. stamped 1st gold 45 1950.
7. Seaboard Air Line Ry. refunding gold 4s 1959.
8. Seaboard-Ali Florida Ry. 1st gtd. gold series A 6s, 1935.
9. Seaboard-All Florida Ry. 1st gold series B 65, 1935.
10. Ajax Rubber Co., Inc., 1st sinking fund gold 8s, 1936.
11. Baragua Sugar Co., 1st sinking fund gold 73.s, 1937.
12. Cuban Dominican Sugar Co., 1st lien sinking fund gold 7s,1944.
13. Cuban Dominican Sugar Co.. 1st lien sinking fund gold 7%s, 1944.
stamped with stock purchase warrants attached.
14 Indiana Limestone Co., 1st sinking fund gold 6s, 1941.
15. International Match Corp., deb. sinking fund 58, 1947.
16. International Match Corp. cony. deb. gold 58, 1941.
17. N. Y. State Rys. 1st cons, gold series A 4Ms. 1962.
18. N. Y. State Rys. 1st cons. series B 63s, 1962.
19. Pan-America Petroleum Co.(of California) 1st cony.s.f. gold 6s, 1940.
20. Park Lexington Corp., 1st leasehold sinking fund gold 6s,1953.
21. Richfield Oil Co.of California series A coll, trust cony. gold 68, 1944.
22. Fisk Rubber Co., 1st sinking fund gold 8s, 1941.
23. General Theatres Equipment, Inc., cony, gold deb. 65, 1940.
24. Sugar Estates of Oriente, Inc., 1st sinking fund gold 7s, 1942.
25. Warner Sugar Corp. 1st. & ref. sinking fund gold series A 7s. 1939.
26. Warner Sugar Corp. 1st & ref. s. f. gold series A 7, 1939,(stamped).
27. Wickwire Spencer Steel Co., series A prior lien collateral & refunding
convertible sinking fund gold 7s, 1935.
28. Wickwire Spencer Steel Co., first mortgage sinking fund gold 7s, 1935.
29. Eastern Sugar Corp. 15-year 73. % mtge.sinking fund gold, due 1937.
30. Cuban Cane Products Co., Inc., 20-year 6% gold deb. 1950.
31. Lexington Ave. & Pavonia Ferry first 58 guaranteed, 1993.
32. Camaguey Sugar Co., first sinking fund gold 75, 1942.
33. Cespedes Sugar Co., first sinking fund gold 7%s, 1939.
34. Cespedes Sugar Co.,first sinking fund gold 74s 1939 (stamped).
35. Brooklyn Rapid Transit 1st refunding convertible 4s, 2002.
ASHBEL GREEN, Secretary.
New York Stock Exchange Acts to End Trading in
Austrian Anstalt Bank Shares-First to, Be Ad•
mitted Under Ruling on Foreign Issues.
American shares of the Austrian Credit Anstalt will be
stricken from the list of the New York Stock Exchange on
Oct. 7, it was announced on Sept. 29. The issue, which
has not been traded in this year, was the first (it is noted
in the New York "Times") to be admitted to the Exchange
after the formulation of requirements for listing foreign
shares through trustees' certificates representing deposits
of such shares. The stock was listed on Nov. 17 1927.
The "Times", also says:
The Austrian Credit Anstalt is being reorganized. It was said that
the collapse of the bank in May 1931 precipitated the Central European
financial crisis of last year.
2261
Plans for Inter-Membership Between Toronto Stock
Exchange and Standard Stock and Mining Exchange-Based on De-Listing.
A proposal that members of the Toronto Stock Exchange
be permitted to become members of the Standard Stock and
Mining Exchange was adopted by Toronto Stock Exchange
members on Sept. 20, it is learned from the Toronto "Globe"
of Sept. 21, from which we also quote:
The plan is contingent upon a similar reciprocal agreement on the part
of the Mining Exchange, and also contingent upon the "delisting" agreement made on April 26 remaining in force.
Under the "deliating" agreement mining issues, with the exception of
International Nickel and Consolidated Smelters, were removed from trading
on the Toronto Exchange, and in return certain issues were removed from
the Standard Exchange list which were regarded as more properly belonging
to the Toronto Stock Exchange list.
Amendment to By-Law.
Yesterday's action by the Toronto Stock Exchange was taken at a special
general meeting of the members and is in the form of an amendment to the
Exchange By-Law No. 8.
The amendment adds to the By-Law the following:
"Provided, that nothing hereinbefore contained shall prevent a member of this
corporation becoming and being a member of the Standard Stock and Mining Exchange or associated with any person or firm who are members thereof if and so
long as the agreement dated the 26th day of April, 1932, between this corporation
and the said Standard Stock and Mining Exchange or any renewal or extension
thereof remains In force and effect, and if the said Standard Stock and mining Exchange by its rules or by-laws permits its members to become members of this
corporation on similar terms."
Similar to New York Exchanges,
The proposal, as such, was tentatively agreed upon for presentation to
the members of both bodies at the time of the delisting agreement made
last April. This agreement limited the members of the Toronto Stock Exchange to deal on the floor of the Exchange in industrials, miscellaneous
issues and oil stocks and confined the Standard members to mining issues
solely. By this agreement any conflict of interests between the two Exchanges was eliminated and made for closer and more accurate markets in
the respective stocks. Should yesterday's amendment became effective
through action of both bodies the situation will be similar to the New York
Stock Exchange and the New York Curb, to which membership in one
does not preclude membership in the other.
Plan for Creation of Central Organization for Savings
Banks Approved by Savings Banks Association of
State of New York-Endorsed by State Superintendent of Banks Broderick and President Henry
R. Kinsey.
The Savings Banks Association of the State of New York,
at its annual meeting at Rye, N. Y., on Sept. 23, registered
its approval of a plan for the creation of a central organization for savings banks, which would function along the lines
of the Federal Reserve Bank. A report of a special committee detailing the plans for such an institution was adopted
by the Association. Joseph A. Broderick, New York State
Superintendent of Banks, in addressing the convention on
Sept. 22 urged support of the plan, and Henry R. Kinsey,
President of the Association, in opening the convention
likewise voiced his approval of the move. Mr. Kinsey said
in part:
The idea of some such central reserve fund was first broached at our
annual meeting in 1925. Credit for initiating the idea is due to the late
Charles J. Obermayer, who was at that time President of the Association,
to George V. McLaughlin,the then Superintendent of Banks and to Darwin
R.James, who sopke on the subject at the annual meeting in 1925. . . .
Much thought and discussion has evolved the desirability of a central
bank for savings banks which could also include some of the features of a
clearing house association. The membership voted almost unanimously in
favor of such a central bank at the midwinter conference of our Association
and a special committee is ready to report at to-morrow afternoon's session
of our convention.
The address of Mr. Broderick is given in another item in
this issue of our paper. The committee report follows:
REPORT OF THE SPECIAL COMMITTEE TO STUDY A
CENTRALIZED BANK.
(Associated Mutual Savings Banks, Inc., of the State of New York)
To the Executive Committee and 'ember Banks.
*During the past 10 years our savings banks have enjoyed unprecedented
confidence from the general public. Should we attempt to analyze the
reason for this, one certainly must accord a foremost position to the fact
that our mutual savings banks have clearly shown a co-operative spirit
that is especially evidenced when any one of our banks is faced with difficulties. It has been this spirit that enabled us in a short space of time last
fall to work out the details of the Mortgage Liquidity Fund and put it in
operation.
Tracing the past history of this co-operative effort we find that at our
1925 convention held at the Westchester County Club, Rye, the Chairman of this Committee presented to our membership the idea of creating a
reserve bank for the convenience of the savings banks of our State. This
plan sought to give mutual protection and help to all of our savings banks,
and in addition undertook to make our mortgage holdings more liquid.
It also embodied the feature of providing mortgage certificates issued by the
central bank which could be sold to depositors by any bank electing to do so.
A Committee of the Association studied this plan for several years, but
owing to changing conditions found that the plan did not meet with the
approval of the majority of our members and the committee was discharged.
In 1929 one of our savings banks in Brooklyn was confronted with a
serious run and again the co-operative spirit was evidenced by the splendid
manner in which the officers of Group V handled the situation by immediately making loans to the affected bank, mortgages being taken as collateral.
Between December 1931 and Feb. 1 1932 our banks experienced two
major and three minor runs. Shortly after the difficulty in which one of
our up-State savings banks found itself last October, the details of the
2262
Financial Chronicle
present Mortgage Liquidity Fund were worked out. The boards of 132
banks have pledged their co-operation under the terms of that agreement
and the officers of the remaining 13 banks, whose boards have not acted,
have indicated their desire to co-operate. When this plan was first considered it was pointed out that there were several objectionable features,
some of which were corrected by legislation secured at the last session of
the Legislature to Insure its legality and promptness of action. Other
objections were raised which could only be overcome by changing the
plan to embody a central bank.
For under the Mortgage Liquidity Plan it was necessary to secure initial
assistance from one or more of the large banks. Securing such assistance
sometimes might mean delay. Funds were not immediately available for
transmission to a remote town up-State. Furthermore, in taking mortgages as collateral for a loan to the bank needing assistance, one bank might
be less fortunate than another and so might incur a loan. It was held that
if this was to be a co-operative effort, why should the banks not pool their
interests and together share any possible loss. It was also held that an
agency should be set up that could render assistance, other than financial,
to the banks of the State having as example the Federal Reserve relationship
to member banks.
These and other suggestions were discussed with the result that a plan
was evolved and presented at the Mid-Winter Conference of our Association held on Feb. 25 last. A resolution endorsing the plan was adopted by
a practically unanimous vote in the following language:
-Resolved, that legislation be secured authorizing the establishment of
a central reserve fund, which will administer loans and distribute proceeds
to banks requiring assistance for the purpose of paying depositors, membership in such organization being voluntary, with member banks subject to
such rules in the government of its affairs as are approved by its members."
Efforts to secure legislation necessary to carry the plan into effect were
not successful as the legislature was -in rules" and was about to adjourn.
Meanwhile, the State of Massachusetts, to meet an emergency, anacted
legislation creating a central fund similar to the plan discussed by our
Association in 1925.
At a recent meeting of the Executive Committee, the President was
authorized to appoint a special committee consisting of one member from
each of the up-State groups, and two members each from Groups IV and
V. to make further study of the plan presented at the Mid-Winter Conference and make a report to the annual convention. The President
appointed for this purpose the following:
Group I.—George D.Whedon, Monroe County Savings Bank, Rochester.
Group IL—Alvin G. Hageanan, Syracuse Savings Bank, Syracuse.
Group 111.—Mills Ten Eyck, Schenectady Savings Bank, Schenectady.
Group IV,—Walter H. Bennett. Emigrant Industrial Savings Bank,
New York City; Darwin R. James, East River Savings Bank. New York,
Group V.—Philip A. Benson, Dime Savings Bank of Brooklyn, Brooklyn.
David H. Lanman. Brooklyn Savings Bank, Brooklyn.
Two meetings of the Committee were held, the first at the Dime Savings
Bank in Brooklyn, and the second at the Westchester Country Club,
Wednesday evening, Sept. 21. A Sub-committee meanwhile met with the
Superintendent of Banks and discussed the entire subject with him.
The following plan is presented for consideration:
1. Name.
It is clearly desirable to secure a special charter from the Legislature for
a bank,rather than to operate as a non-chartered organization. The name
selected for the bank is -Associated Mutual Savings Banks, Inc., of the
State of New York."
2. Membership.
Membership is to be by stock subscription, is to be voluntary and
limited to mutual savings banks of the State of New York. It is hoped,
of course, that all banks will subscribe. Each bank is limited in its subscription to 1-40th of I% of its deposit liabilities as of Jan. 1 1933, computed to the nearest $500. with a minimum subscription of $500. If all
banks subscribe the capital funds will be approximately 31,400,000.
3. Investment or Capital Funds.
The capital funds to be held in cash or invested in legal Bankers Acceptances so that the entire fund would be thus available Immediately to meet
an emergency.
4. Dividends.
Dividends will be declared by the Governing Board when, If, and as
justified by conditions.
5. Deposits.
Member banks shall be required on call to deposit with the Associated
Savings
Banks.
Inc..
up to 3% of their deposit liabilities when
Mutual
called upon by the Board of Governors, but may depcsit in excess of this
percentage. Such a deposit to be represented by an instrument known as a
certificate of deposit, representing the amount placed with the associated
bank. It is not anticipated that in normal times an amount in excess of the
original capital will be needed. Should a serious emergency arise a call
for the maximum deposit of 3% would supply a fund of approximately
$150,000.000.
6. Certificates of Deposits Negotiable.
The charter will provide that a certificate representing the deposit made
by a member bank shall be negotiable and thus may be used as collateral
for a loan from a depository of the bank making the deposit, so as to replenish the amount of cash deposited with the Associated Bank.
7. Return of Deposits.
Deposits will be returned to member banks as soon as the emergency is
over and as may be warranted by conditions.
8. Deposits To Bear Interest.
The rate of interest paid on deposits with the Associated Bank will be
fixed by the Governing Board.
9. lanagement.
The plan tentatively provides that the Associated Mutual Savings Banks,
Inc.. of the State of New York will be managed by a Board ofseven Governors elected one each from Groups, I. II and III and two each from Groups
IV and V. Seven alternates will be similarly elected so that at no time will
any one of the five groups be without representation.
10. Duties o, the Board.
The Board shall have complete control and supervision and shall have the
right to call for deposits up to the maximum 3%. The Board may release
any bank from the obligation of the call in case it would be difficult for a
particular bank to meet it. It shall have the right to declare and pay
dividends on the capital stock or withhold same for the purpose of meeting
expenses or creating an adequate surplus. The Board shall also determine
the rate of Interest to be paid on loans to member banks and on deposits
made by member banks.
It shall likewise at all times have the right to request such Information or
statistics from member banks as would appear to be advantageous to the
membership as a whole, and to promulgate recommendations in respect
Oct. 1 1932
to the liquidity of member banks and the general conduct of their business,
so that in times of stress member banks would be enabled to more adequately
meet conditions.
The Board may appoint for purposes of advice an expert or experts on
bond investments, real estate appraisers, auditors and others, whose
services in the judgment of the Board may be required.
Broad powers shall be given to the Board of Governors so that there shall
at all times be an adequate measure of supervision.
11. Expenses.
The expenses of operating the Associated Mutual Savings Banks, Inc.,
of the State of New York would be practically negligible and it would not
be necessary to set un a large organization. Such experts as might be engaged
could be engaged on a per diem basis for the time being. The earnings of
the bank in any case should be more than adequate for its expenses.
The Board of Governors and the officers of the Associated Mutual
Savings Banks, Inc., of the State of New York would serve without compensation.
12. Relationship to Savings Banks Association.
The committee believes that the administration of this bank might well
be tied in with the activities of the Association, as we would thereby have
the benefit of the knowledge and experience of the officers of the Association. This relationship would also lend to the co-operative spirit referred
to earlier in the report.
13. Approval of Plan.
Many details of organization and operation must necessarily be left to
the Board of Governors and it seems unnecessary to elaborate further in
this report.
The outline of the plan as above is therefore submitted for your consideration in the hope that approval will be given and that in due course the
plan will be discussed by the respective Boards of Trustees of all the savings
banks in the State, and the committee continued with instructions to work
out the details of this plan and be further instructed to take the necessary
steps to put the plan into effect.
We assume the same whole-hearted support of the plan as was evidenced
at the Mid-Winter Conference. We trust that the banks will unanimously
approve and that their Boards will authorize subscriptions to the capital
stock of the Associated Mutual Savings Banks, Inc., so that the entire
fund may be available for instant use in case the need arises.
Signed.
Group I.—George D.Whedon, Monroe County Savings Bank,Rochester.
Group IL—Alvin G. Hageman, Syracuse Savings Bank. Syracuse,
Group 111,—Mills Ten Eyck, Schenectady Savings Bank. Schenectady.
Group IV.—Walter H. Bennett, Emigrant Industrial Savings Bank.
New York City; Darwin R. James. East River Savings Bank, N. Y. City.
Group V.—Philip A. Benson,Dime Savings Bank of Brooklyn, Brooklyn;
David H. Lanman, Brooklyn Savings Bank, Brooklyn.
Approval by Joseph A. Broderick, New York State
Superintendent of Banks, of Plan for Creation of
Central Organization for Savings Banks.
In the course of a speech delivered on Sept. 22 before the
Savings Banks Association of the State of New York,
Joseph A. Broderick, New York State Superintendent oi
Banks, referred to the proposal to establish a central organization for savings banks, and urged the Association to give
careful consideration to the report embodying the plan
"and back it to the limit," because, he said, "it means
strengthening the savings bank situation in this State." We
give Superintendent Broderick's address herewith:
It was my privilege to talk to you for a few minutes last year at Niagara
Falls. Since that time we have all been pretty busy. but I want to congratulate the savings bank men throughout the entire State for the good
job they have done during the past year in not only maintaining confidence
in the institutions, but bringing presitge to them.
We have gone through difficult times during the past three years, but
just now the storm seems to be passing, the tide is receding, the sun is
coming out, giving us plenty of cheer, and even the clouds of fear and discontent appear to be vanishing into thin air.
It is true we still have damage to repair and wreckage on the shore, as a
tide when it recedes usually leaves things to be cleared. but I have found
In my experience during the past 35 years in the banking business in this
State that savings bank men have always had faith in their country, and
savings bank men have never doubted, despite the difficult problems that
might be presented, the ability of Its leaders to master their problems.
We can look back and see lots of things we have done which we shouldn't
have done. I have never found anybody yet who is always right. As we
look back at what has gone on since 1924, we all come to the conclusion
that we have been on a speculative spree. We are willing to admit that
many bankers as well as business men have had front seats in the boat
on the wave of speculation.
I think we can see and are willing to admit that many of UB had lost our
balance; that probably some of our ideas have been unsound, our practices
unsafe, and we have gotten away from the conservative practices of the
past; but it wasn't only in this country, gentlemen, it was throughout the
world, and almost everybody seemed to be carried away with the idea there
was no limit to prosperity.
When the storm came It was then that we all realized that probably our
foundations were not quite as strong as we thought they were, and certainly not strong enough to withstand the ravages of the storm. Maybe
the past experiences will prove worth while. That seems a strong state.
ment, but if we are to draw the proper lessons from our experiences, maybe
they will prove worth while in the future.
During the past two years—the last year in particular—a fight has been
made against the depression and the epidemic of fear the like of which this
country has never heretofore made or known. Every agency, business,
banking and governmental, has been used to check the flood, and it appears
now that it has been checked.
During this crisis the savings banks have shown a solidarity that has
never been exhibited before in the history of this country. They worked
as one institution, being convinced that their interest was in the savings
bank system of this State as well as in their individual institutions. And
when trouble came their resources were mobilized quickly without argument
and effectively, because they were available at once, and the hole that was
growing larger was plugged with the resources of the other savings banks.
showing what can be done through co-operation, and your Association has
proved its faith and co-operation through deeds.
Links have been strengthened, and never once during the past two year
has a call been made upon the savings banks of this State to help otheq
Volume 135
Financial Chronicle
savings banks that was not met immediately. That is why the public of
New York State know that their confidence in the savings bank system
has been justified. The public knows that the savings bank is the highest
type of public institution in this country. The public knows that their
trustees are heart and soul interested in the public welfare. They give
their time and attention without any personal benefit or any personal
compensation.
That is why, when funds were going out one way, they went to the
savings banks, and the savings banks found opportunity and time to cooperate with other institutions, as many of you have done in the campaign
that has been waged for lower interest rates, partly for your own protection
and partly for the protection of the general banking interests throughout
the State. In almost every section of the State our plea did not go unheeded. The savings banks were very glad, very anxious and did cooperate with commercial institutions throughout the entire State.
Now, gentlemen, your officers deserve the most sincere congratulations
for what has been accomplished during the past year. The unofficial
mortgage fund that was arranged was a masterpiece. The good that has
been accomplished through that shows the necessity for creating some
machinery on a more permanent basis, because while good can be done in
connection with mortgages, it can be done in connection with other things
in the savings bank field.
I sincerely hope and trust that when the report of the committee is
made to-morrow—I don't know what the report is or will be—you will
receive it, give it careful consideration and back it to the limit, because
It means strengthening the savings bank situation in this State. In
union there Is strength, and your past experiences have proven that there
can be a solidarity of effort by classes of banking institutions through
what you gentlemen have done in the past year.
I believe in a central organization for savings banks that will legally
permit the mobilization of funds that may be necessary to protect the
savings bank system of the State. I believe that you need an organization
somewhat similar to the Federal Reserve Bank that will have a general
oversight on the broader questions involved in the savings bank movement,
and I believe that that organization can be set up to operate economically
and profitably to all of you, and I believe, further, that if you gentlemen
can agree upon a plan that is workable, that no difficulty will be found
when it is presented before the Legislature of this State to get the necessary
sanction.
My dealings with the legislative committees—and I am happy to see a
very prominent member of one of the committees here to-day—I have
found that there is little difficulty in getting legislation through where
the bankers are united on the thought as to its desirability. I think the
savings banks are entitled to consideration from the Legislature. I believe
they have received it.
However, when you realize that 10% of the entire deposits in all banking
institutions in the United States are in the mutual savings banks of New
York State, when you realize that at least one in every two people in this
State has an account with a savings bank in this State, then you can see
the necessity for having the proper organization and proper mechanism
to permit them to mobilize and operate even when emergencies arise.
I may go a step further. I favor the establishment of a clearing house
association in the metropolitan district, believing that the banks in the
metropolitan district have a number of problems peculiar to themselves.
and through that agency many methods and many practices may be
corrected.
Now we are not blind to the fact, gentlemen—I am sure you are not—
that there are defects in our present system. Yougentlemen havere lized
during the past two or three years that there is vast room for improvement.
We need better investment methods, better loaning methods, better
appraisal methods, and, to be quite frank, to repeat what I stated last
year and which I think every fair-minded man will agree with, better
balanced boards of trustees and better balanced managements.
Many of these things may be brought about. It takes time, and you
know me well enough to know that I am not easily discouraged.
Legislation, however, cannot correct everything. Legislation provides
the machinery and defines the scope of activities, but no legislation can
supply experience, Initiative, sound judgment, nor can any legislation
eliminate greed and personal interest which. I am glad to say, is seldom
found in savings banks. Nor can any legislation establish a proper code
of ethics, and we all know there is room for improvement in our code of
ethics in almost every line of business, Including the banking business.
An agency such as a clearing house or the central bank will bring about
an improvement which. I think, will cause such agencies to justify themselves.
Now, gentlemen, I want to congratulate you again not only on the
wonderful way in which you have handled matters during the past year
but also because of your very fortunate choice last year of an able, upright, fair-minded, efficient and constructive leader, Mr. Kinsey, and
your hard-working and efficient Secretary, Mr. Paul Albright, and I
congratulate those gentlemen, too, upon the marvelous manner in which
they have directed the activities of your association during the past year.
May I say, too, that as my term is drawing to a close, I want to take
this occasion to thank you gentlemen for your constructive help and the
marvelous co-operative spirit you have shown to our Department during
the past three years, and the support you have given to the ideas and
ideals which have been suggested.
Security Sale Rights in Closed Bank in Pennsylvania—
Secretary of Banking Ruled to Have Power to Dispose of Securities.
The Pennsylvania Secretary of Banking has the right to
sell, without leave of court, and for any price, listed and unlisted securities belonging to the estates of institutions in his
possession, according to an opinion rendered by Deputy
Attorney-General Harold D. Saylor. This is learned from
Harrisburg, Pa., advices Sept. 24 to the "United States
Daily," from which we also quote:
The Secretary of Banking, Dr. William D. Gordon, asked for a ruling on
this point, and also as to whether he might exchange securities In connection
with the reorganization or readjustment of the obligations of corporations
issuing them.
Opinion Summarized.
Mr. Saylor summarized his opinion in a concluding statement which follows in full text:
To summarize, you are advised that as Secretary of Banking in possession
of closei institutions you enjoy the same unrestricted right and power to
sell, transfer and deliver listed and unlisted securities as was enjoyed by
the person or corporation owning them before you took posesssion of his
or its business and property.
2263
You may, without leave of court, and without notice to depositors,
creditors and stockholders of the closed institutions, so dispose of any and
all listed or unlisted securities in your possession belonging to such institution to such parties, at such times, on such terms and for such prices
as to you may seem best for the interests of the estate concerned.
Where you desire to exchange securities for other obligations, you may do
so without leave of the court only where, as a result of the transaction,
you obtain an obligation which is not reduced in amount of principal or
rate of interest, of which the maturity date is not postponed, and for which
no concession in the priority of the lien has been given. In all other cases
it is necessary to obtain leave of court to effect such exchange.
Action to Halt Merger of National Bank of Commerce
and First Wisconsin National Bank of Milwaukee
—Federal Authority to Sanction Branch Bank Is
Challenged—Deputy Attorney-General of Wisconsin Tells Governor That Action Under McFadden
Law Is Illegal.
The following from Madison, Wis., Sept: 17 is from the
"United States Daily" of Sept. 19:
Action seeking to halt operation of the National Rank of Commerce of
Milwaukee by the First Wisconsin National Bank of Milwaukee as a
branch has been started by the Wisconsin Attorney-General's Department
under direction of Governor Philip F. LaFollette.
A proposal for the merger of the two banks, both units of Wisconsin
Bankshares Corporation, is pending. Operation of one as a branch of the
other would be in violation of law, a letter to the Governor from Fred M.
Wylie, Deputy Attorney-General. declared.
Text of Communication.
The letter follows in full text:
"Dear Sir.—The Attorney-General is in receipt of your direction to bring
action to prevent the First Wisconsin National Bank of Milwaukee from
operating, in violation of law, the National Bank of Commerce of that city
as a branch.
"Some years ago, the Attorney-General of the United States gave opinion
under which the Comptroller of the Currency authorized branch banking
by National banks. In a test case, joined in by 19 States, including Wisconsin, the Supreme Court of the United States affirmed a judgment of the
Supreme Court of Missouri. that branch National banks were not authorized
by the Federal statutes and were prohibited by State statute substantially
the same as Wisconsin's law, and sustained an action by the State to oust
a National bank from the operation of a branch.
Federal Enactment.
"Following this decision, Congress enacted the McFadden bill which
provides that a National bank may establish and operate new branches
within the city limits of the city, town or village in which said association
Is located, if such establishment and operation are at the time permitted to
State banks by the law of the State in question.
"Also, to meet certain special contingencies. Wisconsin has since authorized State banks to operate receiving and disbursing stations in villages
in very limited and specified instances, and in one particular situation the
operation of a bank at two locations in the same city.
"Again, as I understand, the Attorney-General of the United States has
given opinion under which the Comptroller of the Currency has authorized
city branch banking by National banks in Wisconsin. Again. I am satisfied.
the opinion is in error, and an action by the State will be sustained.
"The obvious purpose of the McFadden Act is to relieve National banks
from the disadvantage of competition with State banks with which they are
not on a parity in branch banking privileges. The record of the legislation
is replete with the specific expression of this purpose. And the language of
the Act points to the same purpose. It is a preversion of both purpose and
language to extend it so as to give National banks an advantage over
State banks or to extend branch banking privileges one iota beyond what Is
necessary to meet the privileges of the State banks. The opening of the
door a crack in favor of State banks does not throw it wide open to National
banks, but it Is open only the same crack to National banks.
"I am satisfied that the most the National banks are authorized to do is
that and that only which State banks are authorized to do. and that is in
a very restricted and inconsequential Mid. I understand that the branch
established in Milwaukee cannot be brought within this field. Therefore.
appropriate proceedings will be commenced to oust the First Wisconsin
National Bank from the operation of this branch.
Yours truly.
FRED M. WYLIE, Deputy Attorney-General.
Deposits of State in Closed Alabama Bank Ruled
Preferred.
The following from Montgomery, Ala., Sept. 22, is from
the "United States Daily":
An unsecured deposit of the State Health Officer in a defunct bank Is a
preferred claim, it was held in an opinion just rendered by the office of the
Attorney-General to Dr. J. N.Baker, State lies th Officer.
Writing for a ruling. Dr. Baker advised Attorney-General Thomas E.
Knight. Jr., that several months ago when the Baldwin County Bank at
Bay Minette closed its doors, there was on deposit in the bank in his name
as State Health Officer, for use in the operation of the Baldwin County
Department of Health, the sum of $508.23. which deposit was unsecured.
Dr. Baker also stated that an effort Is now being made to reopen the bank.
making it necessary for practically all depositors to enter into an agreement.
The question was then asked by the State Health Officer, whether he should
sign the agreement, copy of which was enclosed, giving consideration to
the fact that the deposit referred to may be a preferred claim.
The opinion states that the deposit is a preferred claim against the assets
of the bank, and that It would not be to the advantage of the State Health
Officer to sign the agreement.
Gov. Miller of Alabama Signs Representative Swift's
Bank Aid Bill—Measure Designed to Facilitate
Reopening of Defunct Institutions.
A measure which is expected to aid in the straightening
out of the affairs of closed banks and to bring about where
possible their reopening became a law on Sept. 20, when it
was approved and signed by Gov. Miller of Alabama. We
2264
Financial Chronicle
quote from the Montgomery "Advertiser" of Sept. 21, which
stated:
It is House Bill 147 by Representative Swift. This new piece of legislation authorizes the State Superintendent of Banks to borrow money on
behalf of a closed bank or trust company and secure the loan by a pledge
of the assets of the closed institution—for the purpose of protecting or
preserving the assets of the bank, paying secured claims, aiding in the reorganization or reopening of the bank, or making distribution to depositors
and creditors.
Federal Advisory Council's Recommendations to Reserve Board Regarding Member Bank Loans—In
Accord with Action of Reserve Banks in Lending
Assistance to European Central Banks in Recent
Emergency.
•
The Federal Reserve Board has just made public the
complete edition of its annual report, covering the operations
for the year 1931. The preliminary report was referred to
at length in these columns June 25 1932, pages 4550-4554.
The complete report embodies the recommendations made
by the Federal Advisory Council during 1931, which apparently have not previously been made public. Noting
that the Council recommends that Federal Reserve banks
should be required by law or by the Federal Reserve Board
"to keep themselves informed of the quality of investments
and loans and the policy of the management of all member
banks," the United States "Daily" made the further observations in its issue of Sept. 21 regarding the Council's recommendations:
It The 12 regional Reserve banks should watch over the management of
the 7.000 member banks of the Reserve System in the opinion of the
Advisory Council which recommended this to the Federal Reserve Board
as a measure to reduce the number of bank failures.
Matt* Subjects Included.
Recommendations which the Advisory Council made to the Board during
1931 were made public by the Board Sept. 20 and included statements on
bank suspensions, branch banking, assistance to European banks, the discount eligibility of securities during times of pressure, and open market
operations.
The Advisory Council, composed of members selected by the Federal
bank directors in each district, met again Sept. 20 but adjourned without
making any statements, according to oral information furnished at the
Federal Reserve Board offices. The Council must meet at least four
times a year.
As given in the Reserve Board's report, the recommendations follow:
RECOMMENDATIONS OF THE FEDERAL ADVISORY COUNCIL
FEBRUARY 17 1931.
Topic No. 1—Bank Failures and Banks Examinations.
Recommendation.—The Federal Advisory Council believes that bank
failures in recent times have been largely due to a change in economic
and social conditions.
In many instances the minimum capitalization required of banks has
not been a sufficient protection to the depositors. The difficulties which
banks have encountered can not be traced entirely to a deficiency in our
banking and examination systems. The law now gives sufficient power
and authority for an adequate examination. Improvements in examinations undoubtedly can and should be made.
There should be imposed upon the Federal Reserve banks the requirement to keep themselves informed of the quality of the investments and
loans and the policy of the management of all member banks.
Topic No. 2—Open-Market Operations and Rediscount Rates,
Recommendation.—The Federal Advisory Council wishes to reiterate the
recommendation made at its last meeting that the situation will be best
served if the natural flow of credit is unhampered by open-market operations
or changes in the rediscount rates.
The Council believes that the manner in which open-market operations
have been conducted since the last meeting of the Council is satisfactory.
SEPTEMBER 15 1931.
Topic No. 1—Proposed Amendments to National Bank Act and Federal
Reserve Act,
Recommendation.—The Federal Advisory Council has received the
recommendations of the Comptroller of the Currency made in his annual
report for 1930, suggesting certain changes in the Federal laws relating
to banking. The Federal Advisory Council is in sympathy with the
Comptroller's recommendations, but suggests certain changes. In the
following the original where changed is placed in brackets and the changes
suggested by the Federal Advisory Council are italicized:
I. Group and Chain Banking—No national bank should be permitted
to become a part of a group banking system, except on the condition that
all other banks in the group are [national banks: and when a State member
bank of the Federal , Reserve Sy stem is a part of a group, the Federal
Government should be given visltorial powers over the entire group]
members of the Federal Reserve System to the end that the Federal Government
have visitortal powers over the entire group. More specifically:.
(a) No corporation should be permitted to own (a majority] tn excess of
20% of the stock of a national bank if It owns at the same time [a majority]
in excess of 20%, of the stock of a State bank unless said State bank is a
member of the Federal Reserve System.
(b) The Comptroller of the Currency should be given visitorial power
over any corporation owning [a majority] in excess of 20% of the stock of
bank.
a nationalnational
bank should be permitted to make a loan on the security
(c) No
of the stock of a corporation owning [a majority] in excess of 20% of the
stock of the lending bank.
II. Branch Banking.—A. The McFadden Act should be amended to
banks in important commercial and financial centers to
permit national
establish branches in the area that is economically and financially tributary
to State boundaries or to State banking
to such centers without regardlimited
to °auks in cities serving a territory
laws. The privilege should be
diversification. The [trade] area within
• sufficient to provide economic
such cities may extend their branches should be
which banks located in consisting
of the Comptroller of the Currency, the
banned by a committee
Secretary of the Treasury, and the Governor of the Federal Reserve Board.
brancnes
in [a trade] an area should have [a
have
to
permitted
Banks
minimum capital of] capital adequate to their deposit liabilities, the minimum
of branches should be subject
not to be less than $1,000,000. The extension
to the approval of the Comptroller of the Currency.
Oct. 1
1932
B. The National Bank Consolidation Act should be amended to permit
any bank within the [trade] branch-bank area to consolidate under national
charter with the approval of the Comptroller of the Currency.
III. Affiliates.—A, The Comptroller of the Currency should have
authority to examine security or investment companies affiliated with
national banks.
IV. Fiduciary Powers.—A. The law should be amended to provide that
the exercise of fiduciary powers shall be one of the corporate powers of a
national banking association, subject to the existing limitations regarding
State laws now contained in the Federal Reserve Act.
V. Liquidation of National Banks.—A. The Comptroller of the Currency
should be given supervision of national banks going into voluntary liquidation and the liquidating agent should be required to give bond and render
reports to the Comptroller of the Currency in the same manner as the
receiver of an insolvent bank up to such time as all liabilities other than to
stockholders have been paid in full.
VI. Circulating False Reports.—A. It should be made a crime to
maliciously make or circulate any false report concerning a national bank,
or a member of the Federal Reserve System, which imputes insolvency or
unsound financial condition.
Topic No. 2—Eligibility of Securities in Times of Pressure.
Recommendation.—The Federal Advisory Council suggests that the
Federal Reserve Board consider the advisability of permitting Federal
Reserve banks in times of pressure to accept from member banks bills
payable on securities not now eligible, the Federal Reserve Board to issue
regulations defining the conditions under which such action may be taken.
Topic No. 4—Assistance to European Central Banks and Domestic
Credit Situation.
Recommendation.—In response to the request of the Federal Reserve
Board for an expression of opinion the Federal Advisory Council states
that it is in accord with the action of the Federal Reserve banks in lending
with the approval of the Federal Reserve Board assistance to European
central banks in the recent emergency.
The Federal Advisory Council suggests to the Federal Reserve Board
that it explore the possibility of giving all possible support to the stabilization of the credit situation in the United States in the interest of American
business generally, including agriculture, industry, and commerce.
Number of Member Banks in Second Federal Reserve
District Reported at 824 by New York Federal
Reserve Bank.
According to the New York Federal Reserve Bank, there
were 824 member banks in the Second Federal Reserve District as of Sept. 19. Of this number 683 were National
banks, 37 were State banks and 104 trust companies. The
territory of the Second Federal Reserve District consists
of the entire State of New York, together with the 12 northerly counties of the State of New Jersey; namely, Bergen,
Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris,
Passaic, Somerset, Sussex, Union and Warren, and Fairfield County, Connecticut. A land area of 51,890 square
miles is covered by the district with an estimated population
of 16,343,000. The following table was issued by the
New York Reserve Bank on Sept. 19:
MEMBER BANKS IN SECOND FEDERAL RESERVE DISTRICT
SEPT. 19 1932.
State.
Connecticut
New Jersey
New York
Total
National
Banks.
Stale
Banks.
Trust
Companies.
o
o
TOW.
12
175
498
7
30
44
60
12
228
586
683
37
104
824
Secretary of Treasury Mills Commends Service of John
W. Pole as Comptroller of Currency.
John W. Pole, who recently resigned as Comptroller of the
Currency, has received from Secretary of the Treasury Mills
a letter acknowledging the services rendered by Mr. Pole
during his term of office, and particularly during the recent
strain through which the country has been passing. The
letter of Mr. Mills made public at Washington, Sept. 21
said:
You are to-day termlninating your many years of service in this department. I do not want you to leave without, on behalf of my predecessors
and myself, recording the high character of public service which you at all
times rendered.
During the recent period of terrific strain to which our national banking
structure has been subjected, your courage, your broad vision, and your
knowledge and experience have been of inestimable value to the country.
I wish you all future happiness and success in the days that are to come.
Mr.Polo,as we indicated in our issue of Sept. 17, page 1919,
resigned to become President of the Fidelity Investment
Association and its New York affiliate the Fidel Association
of New York, Inc.
Death of Magnus W. Alexander, President National
Industrial Conference Board.
Magnus Washington Alexander, President of the National
Industrial Conference Board since it was founded in 1916,
died suddenly at his home in New York City on Sept. 10.
He was 62 years old. Mr. Alexander, who was born in New
York, studied engineering abroad and in 1893 he became a
designer and engineer for the Weston Electrical Instrument
Company. •The following year he joined the Westinghouse
Electric and Manufacturing Company with which he remained until 1899. In 1900 he became associated with the
General Electric Company as engineer in charge of design
in which capacity he served until 1918 when he was made
Volume 135
Financial Chronicle
2265
The new rates inaugurate an innovation in that for some zones they
Include a fraction of a cent, such fraction, however, being counted as a
new
full cent in the total amount of postage on any one parcel. The
rates are:
First and Second Zones,8 cents for the first pound or fraction of a pound.
and 1.1 cents for each additional pound or fraction thereof.
Third Zone,9 cents and 2 cents, respectively.
Fourth Zone, 10 cents and 3.5 cents.
Fifth Zone, 11 cents and 5.3 cents.
Tenders of $412,510,000 Received to Offering of $100,Sixth Zone, 12 cents and 7 cents.
Seventh Zone, 14 cents and 9 cents.
000,000 or Thereabouts of 91-Day Treasury Bills—
Eighth Zone, 15 cents and 11 cents.
Bids Accepted,$100,665,000—Average Rate 0.23%—
will be
The postage on parcels mailed on rural routes for local delivery
local
New Low Figure.
2 cents less than at these rates, and 3 cents less when for other than
The offering of $100,000,000 or thereabouts of 91-day delivery.
Sizes of Packages.
Treasury bills referred to in our issue of Sept. 24 (page
Parcels may be mailed up to 70 pounds in weight and as large as 100
amount
total
The
2086), brought tenders of $412,510,000.
inches in length and girth combined.
The parcel post service has gradually grown since its establishment
of bids accepted was $100,665,000, the average price of the
on Jan. 1 1912. the number of parcels mailed having increased from 250,bank
a
on
rate
average
is
99.941—the
issued
bills to be
000.000 during the year 1912 to over 1,000,000,000 in 1923. However.
discount being about 0.23%. According to the Treasury in 1925 Congress took out of the fourth-class parcels weighing eight ounces
them in the third class.
Department this is the lowest rate of interest the Govern- and under and placed
Consequently, in the following years there was an increase in the number
Daily"
States
ment has ever paid. As to this the "United
of pieces of third-class mail and a less number of parcels of fourth-class
matter, the number of fourth-class parcels in 1930 being a little over
of Sept. 28, said:
off
837.000,000. During the last few years there has been some falling
The bills establish a new record low for that type of Treasury security
from this number, there having been 765.000,000 for the year 1931.
and for all issues; the Treasury will have to pay a rate less than a quarter
Increases Not Great.
of a cent a year on each dollar that it borrows, according to the information.
While the new rates are expected to raise additional revenue from fourthThe previous low figure at which the Treasury bills were
or parcel post mail, the increases are not great in any case and the
disposed of was 0.29%, the average rate paid on bills dated class
decreases are quite substantial for the heavier parcels to distant zones,
May 25 1932. The announcement made by Secretary Mille and these, together with the increased limits of size and weight, make parcel
for traffic not formerly moved by mail, if at all.
on Sept. 26, regarding the result of the latest offering post facilities available
The new rates will still be very reasonable, and the parcel post will continue
follows:
to be a most attractive and economical means available to all patrons of
Secretary of the Treasury Mills announced to-day that the tenders for
the postal service for shipping parcels up to 70 pounds in weight.
$100,000,000, or thereabouts, of 9I-day Treasury bills, dated Sept. 28 1932,
The Department's Circular III shows the new rates and the exact postage
and maturing Dec. 28 1932, which were offered on Sept. 22, were opened
on any parcel weighing from 1 to 70 pounds for any zone. This circular
at the Federal reserve banks on Sept. 26.
may be had by addressing the Third Assistant Postmaster-General, Division
The total amount applied for was $412,510,000. The highest bid made
of Classification.
was 99.958, equivalent to an interest rate of about 0.17% on an annual
basis. The lowest bid accepted was 99.940, equivalent to an interest rate
Restoration of Two-Cent Letter Rate Favored by House
of about 0.24% on an annual basis. Only part of the amount bid for the
Post Office Sub-Committee—Believes Rate Would
bids
of
accepted
was
amount
$100.total
The
latter price was accepted.
665,000. The average price of Treasury bills to be issued is 99.941. The
Provide More Revenue and Work Opportunities.
average rate on a bank discount basis is about 0.23%•
investigating the
"engineer on economic issues" in a consulting capacity.
Mr. Alexander helped to form the National Industrial Conference Board in 1916. After being appointed "engineer
on economic issues" with the General Electric he began
giving the greater part of his time to the Board.
Increase in Parcel Post Rate Effective Oct. 1.
Increased rates on parcel post mail become effective to-day
(Oct. 1). On Sept. 23 the Post Office Department, calling
attention to the new rates which were approved on February
by the Inter-State Commerce Commission, said that the
ncreases were intended to cut into the annual deficit this
class of mail has produced. Based on revenues and expenditures for 1930, the Department figured that parcel post
was being handled at a net loss of $15,000,000. Associated
Press accounts from Washington Sept. 23 said:
While there was a material loss on parcels in the first three zones, those
beyond were handled at a profit. The new scales are designed to equalize
the rates. No change is to be made on parcels for local delivery.
The increases will run from one to three cents, depending upon weight
and distance.
The new rates are: First and Second Zones, 8 cents for the first pound
or fraction of a pound and 1.1 cents for each additional pound or fraction;
Third Zone, 9 and 2 cents, respectively; Fourth Zone. 10 and 3.5 cents;
Fifth Zone, 11 and 5.3 cents; Sixth Zone, 12 and 7 cents; Seventh Zone.
14 and 9 cents; Eighth Zone, 15 and 11 cents.
The postage on parcels mailed on rural routes for local delivery will be
2 cents less than at these rates and 3 cents less when for other than local
delivery.
The new regulations permit mailing matter up to 70 pounds in weight
and as large as 100 inches in length and girth combined.
The Department's announcement as given in the "United
States Daily" of Sept. 26 follows:
New postage rates on fourth-class matter, commonly known as parcel
post mail, will go into effect on Oct. 11932.
The readjustment of these rates was worked out in 1930, and in November
of that year the Postmaster-General requested the consent of the InterState Commerce Commission to the modifications in accordance with the
provisions of law for such procedure. The consent of the Commission
was granted in February last, and by order of the Postmaster-General of
April 7 1932, the new rates become effective Oct. 1 next.
Mail Adjustment Provided For.
This effective date was fixed in order that mailers might have ample
time to change their catalogs, price lists and other literature accordingly.
Figures obtained by the Post Office Department in connection with
the data gathered for the purpose of determining the cost of handling the
several classes of mall and special services performed by the postal establishment showed that, based on revenues and expenditures for the fiscal
year 1930, parcel post mail was being handled at a net loss of approximately $15,000.000.
These figures indicated that while there was a material loss on parcels
carried within the first three zones, those going beyond the third zone
were handled at a profit. The new rates are designed to equalize the
rates and make the charges on parcel post mail more nearly commensurate
with the cost of its handling, transportation and delivery.
Local Delivery Rates Unchanged.
There is no change in the rates on parcels for local delivery. The increases per parcel on those weighing from one to 10 pounds mailed to
the first three zones will not exceed 2 cents for the first and second zones
and only one cent for the third zone; on parcels weighing from 11 to 20
pounds mailed to these zones the increase for zones one and two will not
exceed 3 cents and for zone three will be only one cent.
On parcels going beyond the third zone the increases will not exceed
to parcels weighing
2 cents on any parcel, the increases being applicable only
less than five pounds. On parcels weighing more than this the rates will
in most instances be reduced.
The House Post Office Sub-Committee
postal service went on record on Sept. 28 as favoring restoration of the two-cent postage rate on first-class mail to "provide more revenue and work opportunities." Associated
Press advices from Washington Sept. 28 further report:
of
In a statement the subcommittee said that it advocated the return
subcommittee
the two-cent rate "in view of representations made to the
the
since
mail
first-class
of
at its hearings, the falling off in the volume
three-cent rate went into effect, the Postmaster General's recent public
statements that the two-cent rate should be restored as soon as the postal
mails
business warranted it and the desire of the Subcommittee to build up
emso as to provide more revenue and work opportunities for the postal
result
ployees and substitutes who are being deprived of employment as a
of the decreased postal business."
At the opening hearings of the investigation Chairman Mead, Demoof the
erat, of New York, asked Treasury Department officials in charge
work
public buildings programs to "dispense with red tape" and expedite
on the projects to provide employment.
the
L. C. Martin, aide to Assistant Secretary Heath of the Treasury, told
be
Committee that $74,000.000 of buildings under the Relief Act would
conregular
its
under
pushed, but that the Treasury had 200 projects
struction program to place under way during the next few months.
be
"According to what you say," Mr. Mead said. "very little relief will
not
given this winter under the relief program. In other words, it will
get under way until next year."
additional
Mr. Martin said that Congress had failed to provide for any
architect's ofpersonnel to handle the $200.000.000 program and that the
construction.
fice was working overtime to acquire sites and let contracts for
James A. Wetmore, supervising architect, told the Committee that
in the
projects
425
approximately 50% of the architectural work on the
In
Garner-Wagner Relief Bill was being turned over to private architects
order to expedite work.
Chairman Mead also asserted that the Post Office Department was unjust in administering the economy law.
"President Hoover said the furlough plan, if adopted, would put 20.000
substitute postal workers to work," he said. "Instead of giving 20.000
men work, they are driving the 20,000 substitutes in the service to starvation."
Thomas F. Flaherty, Secretary of the National Federation of Post Office
of
Clerks, said that the department was guilty of flagrant violations"
the economy law in that it did not give work to substitutes on Sundays
and holidays.
A decline in revenue due to the three-cent postage rate was responsible
for the laying off of substitute workers, Mr. Flaherty said.
Early next month,probably Oct. 10, the Subcommittee will start hearings
In Chicago. The resolution ordering the inquiry was sponsored by Representative Sabath, Democrat, of Illinois.
According to the "United States Daily" of Sept. 29, in
deciding to draft and introduce a bill restoring the two-cent
rate on first-class mail, the committee acted on information
to the effect that if the volume of mail was to be built up,
the rate had to be lowered. From that paper we also quote:
Announcement of the decision was made in a statement, which follows
In full text:
The subcommittee of the Committee on the Post Office and Post Roads
of the House of Representatives meeting in Washington to discuss postal
the
matters, to-day (Sept. 28) unanimously approved the introduction on
opening day of Congress of a bill to restore the 2-cent rate of postage on
first-class mail matter, and directed that such a bill be prepared.
Action Follows Hearings.
This action was taken in view of representations made to the Subcommittee at its hearings, the falling off in the volume of first-class mail
since the three-cent rate went into effect July 6. the Postmaster-General's
2266
Financial Chronicle
recent public statement that the two-cent rate should be restored as soon
as the postal business warranted it, and the desire of the Subcommittee to
build up the mails so as to provide more revenue and work opportunities
for the postal employees and substitutes who are being deprived of employment as a result of the decreased postal business.
The Subcommittee is composed of Representatives James M. Mead,
of Buffalo, N. Y., Chairman; Harry L. Haines, of Red Lion, Pa.; John S.
Wood, of Canton, Ga.; Thomas G. Burch. of Martinsville, Va.; Samuel A.
Kendall, of Meyersdale, Pa.; Clyde Kelly, of Edgewood, Pa., and I. H.
Doutrich, of Harrisburg, Pa.
Gov. Franklin D. Roosevelt, Democratic Nominee for
President Sees Drift Toward Economic Oligarchy
—Declares Task of Government is to Assist the
Development of an Economic Declaration of Right
—Private Economic Power Defined as Public
Trust—Would Restrict Operations of Speculator,
Manipulator and Financier.
Declaring that "we are steering a steady course toward
economic oligarchy, if we are not there already," Governor
Franklin D. Roosevelt of New York, Democratic nominee
for President, addressing the Commonwealth Club, at San
Francisco, on Sept. 23, said: "In other times we dealt with
the problem of an unduly ambitious central government by
modifying it gradually into a constitutional democratic government. So to-day we are modifying and controlling our
economic units." "As I see it," said Governor Roosevelt,
"the task of government in its relation to business is to
aRsist the development of an economic declaration of rights,
an economic constitutional order." The Governor also said:
I feel that we are coming to a view through the drift of our legislation
and our public thinking in the last quarter century that private economic
power is, to enlarge an old phrase, a public trust as well. I hold that
continued enjoyment of that power by any individual or group must depend
upon the fulfillment of that trust. . . .
Every man has a right to life; and this means that he has also a right
to make a comfortable living. He may by sloth or crime decline to
exercise that right; but it may not be denied him. We have no actual
famine or dearth; our industrial and agricultural mechanism can produce
enough and to spare. Our government, formal and informal, political and
economic, owes to every one an avenue to possess himself of a portion of
that plenty sufficient for his needs, through his own work.
Every man has a right to his own property; which means a right to
be assured, to the fullest extent attainable, in the safety of his savings.
By no other means can men carry the burdens of those parts of life which,
in the nature of things, afford no chance of labor; childhood, sickness,
old age. In all thought of property, this right is paramount; all other
property rights must yield to it. If, in accord with this pinciple. we
must restrict the operations of the speculator, the manipulator, even the
financier, I believe we must accept the restriction as needful, not
to
hamper individualism but to protect it.
This implication is, briefly, that the responsible heads of finance and
Industry, instead of acting each for himself, must work together to achieve
the common end.
They must, where necessary, sacrifice this or that private advantage;
In reciprocal self-denial must seek a general advantage. It is here that
formal government—political government, if you choose—comes in.
In large part, we give Governor Roosevelt's address
herewith:
•
It was in the middle of the nineteenth century that a new force was
released and a new dream. created. The force was what is called the
industrial revolution, the advance of steam and machinery and the rise of
the forerunners of the modern industrial plant.
The dream was the dream of an economic machine, able to raise the
standard of living for every one; to bring luxury within the reach of the
humblest; to annihilate distance by steam power and later by electricity,
and to release every one from the drudgery of the heaviest manual toil.
It was to be expected that this would necessarily affect government.
Heretofore, government had merely been called upon to produce conditions
within which people could live happily, labor peacefully and rest secure.
Now it was called upon to aid in the consummation of this new
dream.
There was, however, a shadow over the dream. To be made
reel it
required use of the talents of men of tremendous will and
tremendous
ambition, since by no other force could the problems of financing
and
engineering and new developments be brought to a consummatio
n.
So manifest were the advantages of the machine age, however, that
the
United States fearlessly, cheerfully and, I think, rightly accepted the
bitter
with the sweet.
It was thought that no price was too high to pay for the advantages
which we could draw from a finished industrial system.
The history of the last half century is accordingly in large measure
a
history of a group of financial titans, whose methods were not scrutinized
with too much care and who were honored in proportion as they produced
the results, irrespective of the means they used.
The financiers who pushed the railroads to the Pacific were always
nth.
less, often wasteful and frequently corrupt, but they did build railroads
and we have them to-day.
It has been estimated that the American investor paid for the American
railway system more than three times over in the process, but
despite this
fact the net advantage was to the United States.
As long as we had free land, as long as population was growing by leaps
and bounds, as long as our Industrial plants were insufficient to supply our
own needs, society chose to give the ambitious man free play and unlimited
reward, provided only that he produced the economic plant so much
desired.
During this period of expansion there was equal opportunity for
all, and
the business of government was not to interfere but to assist in the
development of industry.
This was done at the request of business men themselves. The tariff
was originally imposed for the purpose of "fostering our infant industry,"
a phrase I think the older among you will remember as a political issue
not so long ago.
The railroads were subsidized, sometimes by grants of money, oftener
by grants of land. Some of the most valuable oil lands in the United
States were granted to assist the financing of the railroad which pushed
through the Southwest.
Oct. 1
1932
A nascent merchant marine was assisted by grants of money or by mail
subsidies, so that our steam shipping might ply the seven seas.
Government in Business.
Some of my friends tell me that they do not want the Government in
business. With this I agree, but I wonder whether they realize the implications of the past.
For while it has been American doctrine that the Government must not
go into business in competition with private enterprises, still it has been
traditional, particularly in Republican administrations, for business urgently
to ask the Government to put at private disposal all kinds of Government
assisstance.
The same man who tells you that he does not want to see the Government interfere in business—and he means it and has plenty of good reasons
for saying so—is the first to go to Washington and ask the Government
for a prohibitory tariff on his product.
When things get just bad enough—as they did two years ago—he will
go with equal speed to the United States Government and ask for a loan.
And the Reconstruction Finance Corporation is the outcome of it.
Each group has sought protection from the Government for its own
special interests without realizing that the function of Government must
be to favor no small group at the expense of its duty to protect the rights
of personal freedom and of private property of all its citizens.
In retrospect we can now see that the turn of the tide came with the
turn of the century. We were reaching our last frontier; there was no more
free land and our industrial combinations had become great uncontrolled
and irresponsible units of power within the State.
Trust-Busting Campaign of Theodore Roosevelt.
Clear-sighted men saw with fear the danger that opportunity would
no
longer be equal; that the growing corporation, like the feudal baron of
old, might threaten the economic freedom of individuals to earn a living.
In that hour our anti-trust laws were born.
The cry was raised against the great corporations. Theodore Roosevelt,
the first great Republican Progressive, fought a Presidential campaign
on
the issue of "trust busting" and talked freely about malefactors of
great
wealth. If the Government had a policy it was rather to turn the
clock
back, to destroy the large cembinations and to return to the time
when
every man owned his individual small business.
This was impossible. Theodore Roosevelt, abandoning the idea of
"trust
busting," was forced to work out a difference between "good" trusts and
"bad" trusts.
The Supreme Court set forth the famous "rule of reason" by which
it
seems to have meant that a concentration of industrial power was permissible
if the method by which it got its power, and the use it made of that
power, was reasonable.
1Voodrow Wilson's Fear of Encroachment of Political Power on
Individuals' Lives.
Woodrow Wilson, elected in 1912, saw the situation more clearly. Where
Jefferson had feared the encroachment of political power on the lives
of
individuals, Wilson knew that the new power was financial. He
saw, in
the highly centralized economic system, the despot of the twentieth century,
on whom great masses of individuals relied for their safety and
their
livelihood, and whose irresponsibility and greed (if it were not
controlled)
would reduce them to starvation and penury.
The concentration of financial power had not proceeded as far
in
as it has to-day, but it had grown far enough for Mr. Wilson to realize 1912
fully
Its implications.
It is interesting, now, to read his speeches. What is called
"radical"
to-day (and I have reason to know whereof I speak) is mild
compared to
the campaign of Mr. Wilson.
"No man can deny," he said, "that the lines of endeavor have
more narrowed and stiffened; no man who knows anything more and
about the
development of industry in this country can have failed to observe
the
larger kinds of credit are more and more difficult to obtain
unless you
obtain them upon terms of uniting your efforts with those who
already
control the industry of the country, and nobody can fail to observe
that
every man who tries to set himself up in competition with any
process of
manufacture which has taken place under the control of large combinations
of capital will presently find himself either squeezed out or obliged
to sell
and allow himself to be absorbed."
Had there been no World War—had Mr. Wilson been able
to devote
eight years to domestic instead of to international affairs—we
might have
had a wholly different situation at the present time.
However, the then distant roar of European cannon, growing ever
louder,
forced him to abandon the study of this issue.
The problem he saw so clearly is left with us as a legacy;
one of us on either side of the political controversy can deny and no
that it
Is a matter of grave concern to the Government.
A glance at the situation to-day only too clearly indicates
that equality
of opportunity as we have known it no longer exists. Our industrial
plant
is built. The problem just now is whether, under existing
conditions, it is
not overbuilt.
Our last frontier has long since been reached, and there
is
no more free land. More than half of our people do not live on practically
the farms
or on lands and cannot derive a living by cultivating their own
There is no safety valve in the form of a Western prairie to property.
thrown out of work by the Eastern economic machines can go for awhich those
new start.
We are not able to invite the immigration from Europe to share
our endless
plenty. We are now providing a drab living for our own
people.
Our system of constantly rising tariffs has at last reacted
against us to
the point of closing our Canadian frontier on the north, our
European
markets on the east, many of our Latin American markets
to the south,
and a goodly proportion of our Pacific markets on the west
through
the
retaliatory tariffs of those countries.
It has forced many of our great industrial institutions, who
surplus production to such countries, to establish plants in exported their
such countries,
within the tariff walls.
This has resulted in the reduction of the operation of
their American
plants and opportunity for employment.
Just as freedom to farm has ceased, so also the
opportunity in business
has narrowed. It still is true that men can start small
enterprises, trusting
to native shrewdness and ability to keep abreast of
competitors; but area
after area has been pre-empted altogether by the great
even in the fields which still have no great concerns the corporations, and
small man starts
under a handicap.
The unfeeling statistics of the past three decades
show that the independent business man is running a losing race.
Perhaps he is forced to
the wall: perhaps he cannot command credit; perhaps he
is "squeezed out,"
in Mr. Wilson's words, by highly organized corporate
competitors, as your
corner grocery man can tell you.
Recently a careful study was made of the concentration
of business in
the United States.
Volume 135
Financial Chronicle
It showed that our economic life was dominated by some 600-odd corporations who controlled two-thirds of American industry. Ten million small
business men divided the other third.
Steering Toward Economic Oligarchy.
More striking still, it appeared that if the process of concentration goes
on at the same rate, at the end of another century we shall have all American industry controlled by a dozen corporations and run by perhaps a
hundred men.
Put plainly, we are steering a steady course toward economic oligarchy,
if we are not there already.
Clearly, all this calls for a reappraisal of values.
A mere builder of more industrial plants, a creator of more railroad
systems, an organizer of more corporations, is as likely to be a danger
as a help.
The day of the great promoter or the financial titan, to whom we granted
anything if only he would build or develop, is over. Our task now is not
discovery or exploitation of natural resources or necessarily producing
more goods.
It is the soberer, less dramatic business of administering resources and
plants already in hand, of seeking to re-establish foreign markets for our
surplus production, of meeting the problem of underconsumption of adjusting production to consumption, of distributing wealth and products more
equitably, of adapting existing economic organizations to the service of
the people.
The day of enlightened administration has come.
Just as in older times the central government was first a haven of
refuge and then a threat, so now in a closer economic system the central
and ambitious financial unit is no longer a servant of national desire
but a danger. I would draw the parallel one step further. We did not
think because national government had become a threat in the eighteenth
century that therefore we should abandon the principle of national
government.
Nor to-day should we abandon the principle of strong economic units called
corporations merely because their power is susceptible of easy abuse.
In other times we dealt with the problem of an unduly ambitious central
government by modifying it gradually into a constitutional democratic
government. So to-day we are modifying and controlling our economic units.
As I see it, the task of government in its relation to business is to
assist the development of an economic declaration of rights, an economic
constitutional order. This is the common task of statesman and business
man. It is the minimum requirement of a more permanently safe order
of things.
Happily, the times indicate that to create such an order not only is the
proper policy of government but it is the only line of safety for our
economic structures as welL
We know now that these economic units cannot exist unless prosperity
is uniform—that is, unless purchasing power is well distributed throughout
every group in the. nation.
That is why even the most selfish of corporations for its own interest
would be glad to see wages restored and unemployment aided and to bring
the Western farmer back to his accustomed level of prosperity and to assure
a permanent safety to both groups.
That is why some enlightened industries themselves endeavor to limit
the freedom of action of each man and business group within the industry
In the common interest of all; why business men everywhere are asking a
form of organization which will bring the scheme of things into balance,
even though it may in some measure qualify the freedom of action of
individual units within the business.
The exposition need not further be elaborated. It is brief and incomplete,
but you will be able to expand it in terms of your own business or occupation without difficulty.
I think every one who has actually entered the economic struggle-which means every one who was not born to safe wealth—knows in his
own experience and his own life that we have now to apply the earlier
concepts of American government to the conditions of to-day.
The Declaration of Independence discusses the problem of government in
terms of a contract. Government is a relation of give end take—a contract,
perforce, if we would follow the thinking out of which it grew.
Under such a contract rulers were accorded power, and the people consented to that power on consideration that they be accorded certain rights.
The task of statesmanship has always been the redefinition of these
rights in terms of a changing and growing social order. New conditions
impose new requirements upon government tmd those who conduct government.
I held, for example, in proceedings before me as Governor the purpose
of which was the removal of the Sheriff of New York, that under modern
conditions it was not enough for a public official merely to evade the legal
terms of official wrongdoing. He owed a positive duty as well.
I said, in substance, that if he had acquired large sums of money, he
was, when accused, required to explain the sources of such wealth. To
that extent this wealth was colored with a public interest.
I said that public servants should, even beyond private citizens, in financial matters be held to a stern and uncompromising rectitude.
Private Economic Power a Public Trust.
I (eel that we are coming to a view, through the drift of our legislation
and our public thinking in the past quarter century, that private economic
power is. to enlarge an old phrase, a public trust as well.
I hold that continued enjoyment of that power by any individual or
group must depend upon the fulfillment of that trust. The men who have
reached the summit of American business life know this best; happily,
many of the urge the binding quality of this greater social contract.
The terms of that contract are as old as the Republic and as new as the
new economic order.
Every man has a right to life, and this means that he had also a right
to make a comfortable living. He may by sloth or crime decline to exercise
that right, but it may not be denied him.
We have no actual famine or dearth; our industrial and agricultural
mechanism can produce enough and to spare.
Our government, formal and informal, political and economic, owes to
every one an avenue to posse's himself of a portion of that plenty sufficient
for his needs through his own work.
Every man has a right to his own property, which means a right to be
assured to the fullest extent attainable, in the safety of his savings. By
no other means can men carry the burdens of those parts of life which in
the nature of things afford no chance of labor—childhood, sickness.
old age.
In all thought of property, this right is paramount; all other property
rights must yield to it.
Must Restrict Operations of Speculator. Manipulator, and Financier.
If. in accord with this principle, we must restrict the operations of the
speculator, the manipulator, even the financier, I believe we must accept
the restriction as needful not to hamper individualism but to protect it.
2267
These two requirements must be satisfied, in the main, by the individuals
who claim and hold control of the great industrial and financial combinations which dominate so large a part of our industrial life. They have
undertaken to be not business men but princes—princes of property.
am not prepared to say that the system which produces them is wrong.
I am very clear that they must fearlessly and competently assume the
responsibility which goes with the power. So many enlightened business
men know this that the statement would be little more than a platitude were
it not for an added implication.
This implication is, briefly, that the responsible heads of finance and
industry, instead of acting each for himself, must work together to achieve
the common end.
They must, where necessary, sacrifice this or that private advantage,
and in reciprocal self-denial must seek a general advantage. It is here
that formal government—political government, if you choose—comes in.
Government Restraint oh. Instal.
Whenever in the pursuit of this objective the lone, wolf, the unethical
competitor, the reckless promoter, the Ishmael OT Insult, whose hand is
against every man's, declines to join in achieving in end recognized as
being for the public welfare, and threatens to drag the industry back to a
state of anarchy, the Government may properly be asked to apply restraint.
Likewise, should the group ever use its collective power contrary to the
public welfare, the Government must be swift to enter and protect the
public interest.
The Government should assume the function of economic regulation only
as a last resort, to be tried only when private initiative, inspired by high
responsibility, with such assistance and balance as government can give,
has finally failed.
As yet there has been no final failure, because there has been no attempt;
and I decline to assume that this nation is unable to meet the situation.
The final term of the high contract was for liberty and the pursuit of
happiness.
We have learned a great deal of both in the past century. We know that
individual liberty and individual happiness mean nothing unless both are
ordered in the sense that one man's meat is not another man's poison.
We know that the old "rights of personal competency"—the right to
read, to think, to speak, to choose and live a mode of life—must be respected
at all hazards.
We know that liberty to do anything which deprives others of those
elemental rights is outside the protection of any compact, and that
government in this regard is the maintenance of a balance within which
every individual may have a place if he will take it, in which every
individual may find safety if he wishes it, in which every individual may
attain such power as his ability permits, consistent with his assuming the
accompanying responsibility.
All this is a long, slow task. Nothing is more striking than the simple
innocence of the men who insist, whenever an objective is present, on the
prompt production of a patent scheme guaranteed to produce a result.
Human endeavor is not so simple as that. GovernMent includes the art
of formulating a policy and using the political technique to attain so much
of that policy as will receive general support; persuading, leading, sacrificing, teaching always, because the greatest duty of a statesman is
to educate.
But in the matters of which I have spoken we are learning rapidly in a
severe school. The lessons so learned must not be forgotten even in the
mental lethargy of a speculative upturn.
We must build toward the time when a major depression cannot occur
again; and if this means sacrificing the easy profits of inflationist booms,
then let them go; and good riddance.
Faith in America, faith in our tradition of personal responsibility, faith
in our institutions, faith in ourselves demands that we recognize the new
terms of the old social contact.
We shall fulfill them, as we fulfilled the obligation of the apparent
Utopia which Jefferson imagined for us in 1776 and which Jefferson.
Roosevelt and Wilson sought to bring to realization.
We must do so lest a rising tide of misery, engendered by our common
failure, engulf us all.
But failure is not an American habit, and in the strength of great hope
we must all shoulder our common load. .
At Los Angeles Gov. Franklin D. Roosevelt Indicates
Ideas as to Development by Government of HydroElectric and Water Power.
In part we quote as follows what Gov. Franklin D. Roosevelt, Governor of New York, and Democratic nominee for
President, had to say in an address delivered a$ Los Angeles
on Sept. 24:
As I look over this great country of yours I see a desert transformed into
the greatest agricultural country in the world—a land of unsurpassed
beauty—of unsurpassed possibilities. It was water that wrought the
change. and I can see the difference.
Since the first time that I came here 20 years ago. 800 what water has
done. It was the sovereign right of government that insured the highest use
of your water, and you understand that.
And the necessity for it, as your population grows, continues and grows
Itself, for without additional supply your progress must cease. Second only
to the demand for water itself in the development of this great section is the
adequate supply of cheap hydroelectric power. And that power is assured
to you forever under the protection of government, just so long as you own
the government.
The whole nation has watched the magnificent progress that your
municipality and many other municipalities of this section have made in
the development of the use of water, and lam glad that the Federal Government. through Congress, has already taken steps to assure to your multidpalities and to this section not only an ample supply but also hydrcelectric
power, the cheapest in the world, for the use of your people through
government protection.
I have spoken on several occasions of the interest of government in hydroelectric power. You know of one project at Boulder Dam, the Project
which for this whole section of the country is to act as a yardstick for the
generations to come. I congratulate you and rejoice with you, but I want
to point out to you that it is only one part of what the National Covernment can do toward this sans, end.
Up in the northeastern section of the country it so happens that there
flows a great river, the St. Lawrence River, and its American section is
capable of generating over a million horsepower,and we in the northeastern
part of the country hope that that will be developed by the government to
act as a yardstick on the charges and the service by private companies-for
the benefit of the whole section.
And then down in the southeast part of the country nature has given-us
Muscle Shoals to act in exactly the same capacity for that part. And in
2268
Financial Chronicle
the Southwest we have Boulder Dam. In the Northwest, the fourth
corner, the fourth quarter of the country, Nature has given us the Columbia
River.
And so you see that our land is blessed with four great sources of power,
all of them controlled by the people of the United States. I rejoice with
you in this gift of God. I intend to see that this great government work is
expedited to the fullest extent; that the guarantees and the protections that
are now thrown around you are never disturbed through legislation sought
by selfish interests.
I spoke the other day in Portland, and I said this, and I want to repeat
it to you, as an important part of the national policy— the natural hyroelectric power resources belonging to the people of the United States or the
several States shall remain forever in their possession."
To the people of this country I have made a request: Judge me by the
selfish purposes of the Insulls and others who have talked of radicalism
while they were selling watered stock to the people, and using our very
schools to deceive the coming generation. My policy, my friends, is as
radical as American liberty, as radical as the Constitution of the United
States.
I am glad to get back to a section of the country, too, that I have had a
part in a certain line of development. When I first went to Washington in
1913, the navy of the United States very rarely visited south of San
Francisco,and it was during the Administration of President Wilson, during
those eight splendid years, that the national Government recognized from
naval point of view the existence of Southern California.
And I don't need to tell you as a former Assistant Secretary cf the Navy,
that I thoroughly understood the great value of an adequate navy toward
commerce, not only in times of war, but in times of peace.
I have spoken of leadership; we can only accomplish results if the leadership is given the support of men and women of all parties. I am not a
great partisan. but I am happy of one thing in this campaign, and that is
that the young men and the young women of the United States are seeming
to realize more than I have ever known before, the duty which they owe to
government.
It is their interest in these days that means the continuance of our form
of government in the days to come.
Results cannot be accomplished when fear or lack of interest causes us
to lie dormant. They can be accomplished only through action, through
courageous action, through progressive action—and, my friends, through
definite aetion.
And that is why I am asking the people of this United States to stand
for a new deal.
I promise you an understanding heart. I promise you all my service.
I promise you the best that is in me. I cannot give you more than that.
I ask for your help; for your help to lead the United States of America;
not just to better days, but to a higher standard of morality, a higher
standard of decency, a greater faith in God. And, my friends, I ask this,
not just for ourselves, I ask it for our children, for our grandchildren, and
great grandchildren, that the 150 years of our national existence be followed
by another century and a half of greater good to the average man and the
average woman, so that our land may be a happier and a safer place for
us to live in. In that spirit I am asking your suffrage.
Give me your help.
Gov. Franklin D. Roosevelt, Democratic Nominee for
President, Re-states His Proposals in Behalf of
Railroads—Party Platforms Compared.
In an address at the Civic Auditorium in San Francisco on
Sept. 23, Gov. Franklin D. Roosevelt of New York, Democratic nominee for President, made a further allusion to his
proposals in behalf of the railroads, his program for which
was contained in an address at Salt Lake City Sept. 17,
given in our issue of Sept. 24, page 2089. In his San Francisco speech of Sept. 23 Gov. Roosevelt said:
Oct. 1
1932
proposals of Governor Roosevelt were wholly, absolutely foolish—conceived in iniquity and dedicated to folly.
And I can only add one other thing that may picture it to you somewhat
better. On this particular play I do not yet know which direction
my
distinguished friend. Vice-President Curtis, is headed—it is probably in a
third direction. I am certain of one thing, my friends—my football friends
—and that is that the ball has not yet been put into play by the administration.
My difficulty, my friends—and that of most of the American people
at
this three-quarter-mile post of the campaign—is what I have referred
to
before: that Republican leadership has failed to propose constructive
remedies in relation to any economic problem with which I have
thus far
dealt. Theirs has been a campaign of mere criticism, a campaign
wholly
lacking in constructive proposals. And I don't think that that is
an unfair
statement of the case by me.
It is so with the two platforms of the parties—there's a
long-winded
complex series of words, filling column after column, as you
know, facing,
as it does, both ways, especially on the great issue of prohibition
—a platform that leaves the nation cold and shivering, and that is a polite
way
of putting it, too.
On the other side there is no doubt as to what our platform
means.
We declare in unequivocal terms for the repeal
of the Eighteenth Amendment—so clear, so concrete is our platform that it has received
the praise
of every honest thinking man and woman who believes
in the joinder of
debates between parties seeking suffrage of the nation.
The people of our country have been deceived
and defrauded into purchasing billions of dollars of foreign securities, all
of which are of less value
than that for which they were sold and many of them,
possibly, practically
worthless. Our people, as you know, have lost billions
through this fraud.
Their money has gone out of our country, out of the
channels of trade and
into the treasury of foreign governments or foreign speculators.
There seems to have been no attempt at governmental
protection against
this outrage. Not only did the administration not
attempt to protect
against the fraud and deception of its citizens in this matter,
but the State
Department, by its public expressions, permitted many an
investor to
believ that the soundness of the foreign securities was
endorsed by our
own Government.
I propose, my friends, that our Government shall protect
our citizens
from speculation and fraud in the sale of these foreign and
domestic securities, and particularly with regard to foreign securities where
the money
leaves our shores forever.
Now, I have heretofore publicly proclaimed this same policy
during
this campaign. And the Republican administration is silent in this
regard.
And there is another illustration of why you can't have a joint
debate
with only one man on the platform.
Reciprocal Tariff in Behalf of Farmer.
The nation has recognized and suffered from the evils of which
I spoke.
The nation understands that I have made definite proposals for the
prevention of a recurrence of those evils. And yet on the *part
of Republican
leadership, while they know the existence of evils, and while they have,
in some instances, been captious critics—critics of the remedies
which we
propose—yet not one single responsible leader of their own
has come
forward with any remedy of their own.
Let me go on. The farm problem is probably the most
serious that
faces our Government to-day, and you people in the cities
know how
dependent you are for your prosperity on the purchasing power of
the farmer
of your nation. Until the purchasing power of the farm dollar is
restored,
industry itself will never revive.
The export markets of our surplus production must be
re-established,
and yet Bich markets have been substantially destroyed, chiefly
foreign tariff acts in retaliation against our own Grundy tariff. I through
propose
to overcome those tariff walls against our export trade through
negotiated
reciprocal tariffs.
And I propose as a temporary measure until we re-establish
world trade
through a sensible method of tariff by negotiation, I propose to
for the farmer what he calls a tariff benefit. That, my friends, provide
in simple
terms means that the farmer is to receive a price for his product,
that
of his product, that is consumed in the United States, a price equal part
to the
world price on these commodities, plus the amount of the
Democratic
tariff.
Several days ago I delivered, after careful study of many sources
of
information, of many suggestions, and after a careful weighing of all
Now, my friends, that is something definite. It is something that
of
this before clarifying my own solutions, a speech on the difficult problem
ligent farm leaders have been asking for and advocating year after intelyear.
of keeping the railroads of this nation solvent ans useful, and of maintaining
It is not visionary. It is practical; and practical men both among
farmers
their services.
•
and among business men believe that it will work.
My principal thesis was this: that up to this time the distinguished gentleThe President of the United States Chamber of Commerce
itself is no
man who is running against me has offered in the only reference to railroads
visionary, and yet he believes that some such plan as this is
practical
among his points of economic rehabilitation the suggestion that more
and necessary.
money should be loaned to the railroads in order that they might add to
But what do the Republican leaders say? The distinguished
their equipment and spend more on their maintenance.
who is running against me says that nothing can be done for gentleman
the farmer,
I criticize this quite frankly, not as a temporary solution of the moment
except to improve general business conditions.
to keep the roads from bankruptcy, but as a permanent solution, because,
And meanwhile he must—indeed, he may do, according to the
adminisif adhered to without any further remedy, it would be only another method
tration—what has been suggested to him by the President's own
Farm
of trying to pay old debts by making new debts, a method which has never
Board, including his Secretary of Agriculture. That is, to plow
up every
yet been successful in either public or in private business.
third row and shoot every tenth cow.
I pointed out that, in addition to the temporary problem of
My friend from Oklahoma and California, Will Rogers, had
keeping
an
railroads from going into the hands of the receivers, we, as a nation, must
better suggestion, and that is, that we shoot every third Republican even
poliadopt the policy of bringing the monthly operating sheets of the railroads
tician. Now, I am convinced, soy friends, that the people of this
country
out of the red and putting them into the black, and I propose half a dozen
are definitely through with a leadership that is offering so little in
the
way
definite, concrete and workable plans to accomplish that end.
of constructive advice.
I am not overstepping, I think, the bounds of modesty when I say that
From the responses that have come to this Democratic policy
that we
these proposals, which have been worked out after consultation with
have been receiving from the farmers and the agricultural leaders
railin every
road employees and railroad operators representing every part of the
part of the country. I am convinced that they are definitely
through with
country, have met with general approval throughout the United States.
the leadership that has said, in effect, to them,"We are sorry;
your case
But, the political effect on my brethren of the other political party was
is hopeless; some of you will have to starve."
astounding. Here is what happened: The very next day there was displayed
And finally, to check up and bring the records down to date,
only two
such a complete lack of co-ordination in their political and economic thinkdays ago, on the Pacific Coast, I spoke of the vital importance
of public
ing that it is a splendid Illustration of the methods by which the present
policy in relation to public utility, local. State and
national.
Republican leadership is conducting the affairs of that party. And, may
There
remains the answer of the Republican leadership which has
been one of
I add, that the conduct of their own campaign is as inept as their conduct
silence, or else a mere plea to let well enough alone. Once
more I have
of the affairs of the nation itself.
offered a program that related to the every-day life of every
man, every
Now, I have to finish my story. The very next day after my railroad
woman and every child in every household of the United
States. Again
speech this Is what happened. A member of the Cabinet of the President,
debate is declined.
who is also a member of his campaign Cabinet, announced with carefully
Again it is made clear that the Republican leadership Is
either
chosen words that my proposals for the railroads were nothing more than
and I mean that word in the sense of having lack of hope—but hopeless—
that it has
stolen goods lifted from the pockets of the administration itself—recomthe glimmering hope of carrying possibly a few States by
force of the
mendathns cribbed from the recommendations made by the Inter-State
Federal ambition.
Commerce Commission in many bygone years, and, in effect, that I, the
I am not content to rest our cause because our opponents
are rather
Democratic candidate, was really in complete and absolute agreement with
inarticulate or merely critical. I shall continue during the coming
weeks
the present administration in Washington, from the President all the way
to set forth the Democratic policy and the Democratic plan
for a greater
down.
social justice, for a better-ordered America.
Well, my friends, that was a star end run by an important interferer on
And I am not content to seek the suffrage of every State
west of the
the Presidential football team, but unfortunately the signals of the teams
Rocky Mountains alone—I am not content to seek the suffrage
west of
got crossed. Because, on the very next play, out of another of the White
the Mississippi River alone—I am not content to seek the suffrage
of the
House doors there rushed in the opposite direction a distinguished Senator
great Middle West; I am not content to seek the suffrage of the
Democratic
mini from an interview with the President to tell the public that the
South, and I am not content to stop there because I believe that the
people
2269
Financial Chronicle
Volume 135
of the great industrial States of the Eastern seaboard and the Republican
fastnesses of Vermont, New Hampshire and Maine, that they, too, are
at one with you here on the Pacific seaboard in their determination to
support definite leadership, constructive leadership,truth-telling leadership,
courageous leadership, and with that leadership the guarantee of a now deal.
President Hoover Announces Extension of Time for
Payment of Crop Loans to Wheat Farmers—Agricultural Department to Accept 25% of Amount
Due Pending Action by Congress—Senator Smith
Would Apply Moratorium to Cotton and Tobacco
Growers.
President Hoover on Sept. 28 took steps to assist wheat
farmers who, it was declared in a White House announcement, have found it practically impossible because of low
prices for wheat to repay this year's crop loans without incurring grave risk of need during the Winter.
The announcement revealed said the "United States
Daily" of Sept. 29 that Arthur M. Hyde, Secretary of Agriculture, after a conference with President Hoover, had
directed the Department to accept from wheat farmers who
are unable to repay their loans 25% of the amount due on
such loans, with an agreement to secure the remaining 75%
on "whatever terms Congress may authorize." "Upon payment of such 25% and execution of the agreement," it was
stated, "no further payment will be required until opportunity has been given Congress to pass on the question involved.
From the "Daily" we also quote:
Position on Loans Stated.
The announcement follows in full text:
"Present low prices make it practically impossible for wheat farmers to
repay their crop production loans without incurring grave risk of need
during the Winter. On Sept. 14 the Secretary of Agriculture, in order
to clear up the situation issued the following statement in respect to
these loans. 'With respect to your recommendation as to deferment of
collection of feed and seed loans made by this Department I am authorized
by the President to say that the Department wishes to handle the situation with the utmost consideration for the borrowers who are in difficulties.
Repayment of Advances.
"'You will realize that the law contemrates that the loans must be repaid
out of this crop and that to give such extension as you wish will require
legislaturive authority. To meet the needs of those who are in distress
the Department will not press for collection of these loans until Congress
has an opportunity to act.'
"It is now represented that this plan has not solved the difficulties in all
localities as it has been construed that under this arrangement .a claim
remains upon the crop which prevents the marketing of any part of it.
"In order to clear the matter up, after consultation with authorities in
the States concerned, and in order to enable such farmers to provide for
their families, the Secretary of Agriculture, after consultation with the
President, has directed the Department to accept from such farmers 25%
of the amount due, together with an agreement to secure the remaining
75% of such debt on whatever terms Congress may authorize. Upon payment of such 25% and execution of the agreement, no further payment
will be required until opportunity has been given Congress to pass on the
question involved."
The White House stated orally Sept. 28 that Secretary Hyde's statement
referred to above was addressed to Governor Warren E. Green, of South
Dakota.
A Washington dispatch Sept. 28 to the New York "Times"
said in part:
Figures on Repayments Thus Far.
Of the aggregate loans from the Department of Agriculture during 1932
for crop production, only about $6,000,000 has been collected with $64,204,503 outstanding; from the 1931 advances $39,700,000 is still unpaid,
but 60% of the total borrowed has been repaid. An additional $1,964,000
remained outstanding from the 1930 borrowings together with about
$8,000,000 in loans between 1920 and 1930.
While detailed figures were not available on the amount of money
advanced by the Department lor wheat production, in the Northwest
Spring wheat area loans were made this year to plant 20,000,000 acres.
Considerably more was advanced for planting in the Southwest Winter
wheat belt, where farmers are now negotiating with the Reconstructiim
Finance Corporation for loans to finance the planting of the 1933 crop.
Wheat farmers in the Dakotas, many of whom lost their crop through
the drought and grasshopper plagues in the past two years, originally
urged an amortization of their loans providing for payment over a period
of years. The Reconstruction Finance Corporation and the Department
of Agriculture held that there was no authority in the law for such action.
Meanwhile, with indications of leniency appearing from within administration ranks to borrowers in the Northwest, Southern cotton and tobacco
planters began urging their inclusion in any relief measures.
Thus Congress now faces a task of working out some formula by which
the Government's widely scattered loans to agriculture may be collected.
Senator Smith Complains to White House.
Senator Smith, who was passing through Washington to-day en route
home, complained to the White House that if the crop production loan
moratorium was to be applied only to the wheat, barley and rye crops, the
producers of major Southern crops, including cotton and tobacco, would
be discriminated against.
In a statement he said:
"I am the author of the crop production loan legislation. I secured its
passage on account of the distressed and impoverished conditions of the
farmers throughout the entire country. And I protest against any such
glaring, sectional, partisan discrimination.
"The condition of the cotton producers is as desperate as that of the
wheat growers. The condition of the tobacco grower is equally distressing.
"Unfortunately, these two products are grown almost exclusively in the
South, and the South is almost exclusively Democratic.
"Even if it were not the intent of the administration in making this
order to so discriminate, it lays itself liable to justifiable criticism.
"I shall insist that the cotton and tobacco growers, who are due the
Government on crop production loans, shall be given the same treatment
that is now given the wheat growers, and if it is not given, public opinion,
based on equity and justice, will uphold them in refusing to pay any
more and under different terms than that granted the wheat growers."
Cotton and Tobacco Growers May Be Given Same
Relief on Loan Payments as Wheat Farmers if
Necessary, Says President Hoover's Secretary.
Cotton and tobacco growers will receive the same relief
as the wheat farmers from immediate payment of their
Federal loans if they can show they are suffering to the
same extent financially, it was stated orally Sept. 29 by
Walter H. Newton, Secretary to President Hoover. In'reporting this the "United States Daily" of Sept. 30 also said:
By direction of the President on Sept. 28 the Department of Agriculture
placed in effect a policy of postponing collection of 75% of the amounts
now due from wheat farmers of the Northwest on seed and feed loans
Made to them by the Federal Government. The President announced that
upon payment of 25% of their debts the farmers would be permitted
deferment of payment of the remainder until Congress meets and has
opportunity to pass upon the problem involved.
In holding out the posibility of relief for tobacco and cotton growers the
White House responds to Southern protests that discrimination was being
shown in favor of Northwestern farms, it was explained at the White
House. The protest was expressed orally on Sept. 28 by Senator Smith,
Democrat of South Carolina.
Mr. Newton said that the bulk of the seed and feed loans to wheat'
growers were made in North and South Dakota and" Montana. The poet-.
ponement action, he said, was to meet the needed cases where there was
the most acute distress. It was not expected that all wheat farmers
would have to take advantage of the deferment of loan repayment, be
added.
"If other localities have the same situation they will be met in like
spirit," Mr. Newton said.
PJgident Hoover, in Letter to Governor Turner of
Iowa, Says Steps Have Been Taken in Effort to
Relieve Farm Mortgage Situation.
On Sept. 28 President Hoover notified Governor Turner
of Iowa that he had obtained a preliminary discussion
among Dastern concerns and Federal agencies on farm mortgages, and that banking and industrial committees in the
Mid-West would start an effort tq alleviate the situation.
The President's telegram to Governor Turner said that
Henry Robinson, chairman of the executive committee of
the banking and industrial committees set up in each Federal
Reserve District, has called members of those committees in
the Mid-West to meet in Chicago on Sept. 29 to consider
farm mortgages.
The telegram to Mr. Turner follows:
The White House,
Washington, Sept. 28 1932.
Hon. Dan W. Turner,
Governor of Iowa,
Des Moines, Iowa.
You will be glad to know that I have secured a preliminary discussion
among Eastern mortgage concerns and Governmental agencies upon the
question of farm mortgages. As a result, Mr. Henry Robinson, Chairman
of the Executive Committee of the Federal Reserve banking and industrial
committees, has arranged for a further meeting of members of those
committees for the Mid-West districts, together with representatives of
mortgage agencies in Chicago, at the Federal Reserve Bank in Chicago tomorrow. It is to be followed by a more extended meeting on Friday.
In order that we may have full co-ordination of Governmental agencies,
the Secretary of Agriculture and representatives of. the Reconstruction
Corporation and the Federal Farm Loan Banks will participate in these
meetings with other mortgage agencies. I am very hopeful that constructive steps will follow from these conferences.
HERBERT HOOVER.
Buyer of Crop Liable on Federal Mortgage—Must Pay
Off Government Ahead of Farmer.
Purchasers of crops mortgaged to the Government for
loans must pay the amount of indebtedness direct to the
Department of Agriculture before any payment is made to
farmer, under a ruling by the Department. This is learned
from a Washington dispatch Sept. 24 to the New York
"Times" which also said:
Thus smile farmers selling grain or produce in the present greatly depreciated market face a prospect of receiving little or no cash in return.
The crop production loan office, set up by the Department to administer this work, has sent notices to possible purchasers of farm produce
telling them they are liable. The notice states:
"If you find that the individual whose crops you are about to buy
secured a loan from this office, you are under obligation to see that the
purchase money is applied to the payment of the debt due the Secretary
of Agriculture and forward such check direct to this office or deliver it
to our authorized field inspector.
"Remittances should always be accompanied by a statement showing
the loan number and the name and address of the borrower for whom
remittance is made."
With the notices are sent lists of debts in the counties in which those
notified are situated, with the following explanation:
"For the convenience of purchasers of crops and other interested parties,
lists of these loans by counties have been prepared and there is attached
hereto a list of loans made to farmers in the county in which you are
operating. Should you need a list for any other county within your trade
41M,
2270
Financial Chronicle
area please aavise immediately and we shall send you such additional
districts as you may require."
The loans now outstanding were authorized by Congress Jan.
22, and
those outstanding were computed on the basis of being due
and payable
Nov. 30. The loans range from $30 to $400, $200 being about
an average.
Congress specified that the loans hould be an absolute first lien on the
proceeds of crops financed by them, but no case can be recalled in
which
the Government has resorted to virtual attachment of property
to collect
such debts.
Regulations Governing Operations of Regional Agricultural Credit Corporations—Granting of Agricultural Loans Soon to Be Started.
Regulations governing the operations of the system of
regional agricultural credit corporations set up by the Reconstruction Finance Corporation were issued Sept. 24 by
the Corporation, specifying that loans by the regional corporations must be secured by first liens on personal property and that the rate of Interest will be 7%. Actual granting of loans soon will begin, it was stated. According
to
the "United States Daily" of Sept. 26, from which the following is also taken:
Oct. 1
1932
the States of Ohio, Kentucky and Tennessee, is to be
located at Cincinnati.
Ohio, with a minimum capital of $15,000,000.
Public Representatives.
The two directors representing the public interest
are former Circuit
Judge Richard C. Stohl of Lexington, Ky., and Harry
Kissell of Springfield, Ohio, former President of the National Associatio
n of Real Estate
Boards.
The nine directors representing the hime financing
business in the Fifth
District [Cincinnati], are:
F. F. Van Duesen of Cleveland, Ohio, Vice-President
and General Manager, Union Savings & Loan Co., Cleveland.
Frank M. Ransbottom of Zanesville, Ohio, Managing
director of the
Home Building & Loan Co. of Roseville, Ohio.
H. F. Cellarius of Cincinnati, Ohio, President, San
Marco Building &
Loan Association.
James B. Davidson of Toledo, Ohio, Lumbermans Savings
Association.
L. A. Hickman of Louisville, Ky., President
of the Greater Louisville
Savings & Building Association, Louisville.
C.S. Furber of Covington, Ky.,Kenton County Building
& Loan League
Charles J. Haase of Memphis, Tenn., Secretary,
Home Buidling & Loan
Association, Memphis.
C. A. Craig of Nashville, President, National
Life & Accident Insurance
Co. of Nashville.
James M. McKay of Youngstown, Ohio,
President, Home Savings &
Loan Co.of Youngstown.
The interest rate, it was stated, is comparable to
the lowest banking
Directors of Indianapolis and Little
rates on this class of business. The regionals will try
Rock Federal
to conduct themselves so as to be non-competitive with other agencies engaged
Home Loan Banks—Districts 6 and 9.
in similar
operations, it was explained. The Corporation's statement
follows in full
The directorates of the Sixth and Ninth Federal
text:
Home
Regulations governing the operation of Regional Agricultur
Loan Bank districts, with banks located at Indianap
al Credit
oli
Corporation offices and their branches were issued to-day
to managers
and Little Rock, respectively, were announced
of 16 offices who met with Ford Hovey, in charge of
Sept. 26
agricultural activities
by the Federal Home Loan Bank Board. The
of the Reconstruction Finance Corporation, and other
officials. Issuance
Public
of such regulations, which have to do only with the agricultura
director for the Little Rock bank are A. D. Geogheg
l credit
an of
corporations, will make possible the granting of the first
loans soon after
New Orleans and J. F. Lucey of Dallas, Tex., and J.
the managers return to their districts, it is believed, as
Walter
applications are
Drake of Detroit and S. Rudolph Light of Kalamaz
being received daily.
oo,
Applicants for loans are limited to individual farmers
Mich., will represent the public interest in the Sixth (Indiand stockmen,
partnerships and corporations engaged in the business of
farming, or the
anapolis) District. The announcement of Chairman
raising, breeding fattening or marketing of livestock. Ineligible
Fort
for loans
of the Federal Home Loan Bank Board, was given as follows
are canners, packers, processors, commission merchants. Security
must
consist of first liens on personal property. Real estate is acceptable
in the "United States Dilly" of Sept. 27:
only
as additional security.
The rate of interest will be 7% which is comparable to the lowest bankBank at Indianapolis.
ing rates on this class of business. Directors of the Reconstruction CorFranklin W. Fort, Chairman of the Federal Home Loan
Bank Board,
poration point out that the borrower will not be charged any servicing
announced to-day (Sept. 26) the group of 11 directors for the
Sixth District
and inspection fees in making a loan from the agricultural credit
(Indianapolis) Federal Home Loan Bank at Indianapol
offices.
is,
Ind.
It was said that in many livestock loan transactions the rate of 7%
This makes the fourth of the regional directorates
would
to be completed.
be lower than the net cost of a similar transaction elsewhere.
Those previously announced were the Fifth and Twelfth
Districts.
The policy of the Agricultural Credit offices will be to remain
In
making the announcement the Board pointed out the
nonlaw required
competitive, so far as possible with other agencies and financial
nine of the 11 directors of each regional bank to be
conselected
from men
cerns both Governmental and private, engaged in similar operations.
connected with the home financing business and that
their successors
Loans will be made direct to applicants. No intermediate agencies
must be officers or directors of institutions which owned
will
stock in
stand between the borrower and the credit office, eliminating
As to the other two directors, no limitation is made by the the bank.
the necessity
statute and
for commissions to agents. Agents, financial institutions
these two directors are being selected as representatives
and friends may
of the public
assist applicants in getting papers in shape for loans
interest.
but in order to
give farmers the maximum benefits of the credit corporatio
The Federal Home Loan Bank for the Sixth District,
n services it
which comprises
will be necessary for borrowers to pay any intermediate fees.
the States of Indiana and Michigan, is to be located
at Indianapolis,
Loans will be made on four general types of livestock: Range,
Ind.,
with a minimum capital of $8,000.000. The two directors
breeder,
reprepasture and feed lot. No loan Will be made until complete
senting
public
the
interest
are J. Walter Drake, of Detroit, former
appraisal of
the livestock has been made.
Secretary of Commerce, and S. Rudolph Light, of KalamazooAssistant
,
Mich.,
Range values (not central market quotations) will be used in
former Vice-President of the Upjohn Chemical Co.,
appraisals
Kalamazoo.
of range, breeder and pasture livestock. Ranch facilities and
The nine directors representing the home financing
equipment,
business for the
nearness of ranch to central markets and other similar factors
Sixth District are:
will be
considered in making loans, as well as the breeding, quality and condition
F. S. Cannon, of Indianapolis. President, Raikoadme
n's Building &
of the stock.
Savings Association.
Range and breeder loans will be made for no longer period than
Mark L. Dickover, of Valparaiso, Ind., Secretary, Valparaiso
one
Building
Loan-Fund & Savings Association.
year; pasture loans, for one year or less, if the livestock is marketed
in
F. M. Boone, of South Bend, /d., Treasurer, Building
less than one year.
& Loan Association, South Bend.
No loans will be made in one district to a resident of another except in
Arthur F. Hall, of Fort Wayne, Ind., President, Lincoln
cases of loans made at the central livestock markets, such as Chicago,
National
Life
Insurance Co.
Kansas City, Omaha, etc., where money must be made available to
a
Charles N. Remington, of Grand Rapids, Mich., Grand
borrower regardless of where he lives.
Rapids Mutual
Building & Loan Association.
Attending the Agricultural Credit Corporation meetings are Harry
C.
H. T. Donaldson, of Lansing, Mich., Union Building &
Jobes, Kansas City; John W. Barton Minneapolis; C. 0. Jacobson, Sioux
Lean Association,
City; Charles 0. 'tuning, Omaha;'
Lansing.
George A. Gribble, Denver; C. W.
Grant H. Longnecicer, of Benton Harbor, Mich., Peoples
Floyd, Wichita; Ben S. Smith, Houston; Cl. C. Magruder,
San Angelo
Savings
Association, Benton Harbor.
(Tex.); A. E. Thomas, Fort Worth; S. Grover Rich,
Salt Lake City;
William C. Weis, of Ann Arbor, Huron Valley Building &
H. L. Streeter, Boise; R. E. Towle, Spokane; H. N.
Piggott, Helena;
Savings
Association.
W. E. Williams, Portland, Ore.; Harry G. Beale, Colombus (Ohio), and
Myron H. Gay, of Muncie, Ind.. Vice-President of the
L. W. Manning, Louisville.
Peoples-Muncie
Building & Loan Association.
Directors of Cincinnati Federal Home Loan Bank—
District No. 5.
The first appointment of directors for a Federal home
loan bank was announced Sept. 22, by the Federal Home
Loan Bank Board with the naming of nirectors far the bank
at Cincinnati, Ohio, to serve Ohio, Kentucky and Tennessee.
The "United States Daily" of Sept. 23, reportel this and
added:
Directors Chosen
Nine of the directors chosen for the Cincinnati bank were men engaged
in. the home financing business, in accordance with the law creating the
bank system. the Board explained, while two, a former circuit judge and
a
former president of the National Association of Real Estate Boards,
were
selected as "representing the public interest."
The Board's statement fIllows in full text:
Franklin W. Fort. Chairman of the Federal Home Loan Bank Board,
announced to-clay the first group of directors for any of the 12 Federal
Home Loan banks.
Re ruirement Of Law.
In making the announcement, the Board pointed out, the law required
9 of the 11 directors of each regional bank to be selected from men connected
with the home financing business and that their successors must be officers
or directors of institutions which owned stock in the bank.
As to the other two directors, no limitation is made by the statute and
these two directors are being selected as representatives of the public interest.
k The Federal Home Land Bank for the Fifth District, which comprises
Bank at Little Rock.
Franklin W. Fort, Chairman of the Federal Home Loan
Dank
announced to-day (Sept. 26) the group of directors for the Ninth Board,
(Little
Rock) District of the Federal Home Loan Bank System.
This makes the third of the regional directorates to be
completed. Those
previous announced were for the Fifth and Twelfth districts.
In making the announcement the Board pointed out the
law
nine of the 11 directors of each regional bank to be selected required
from men
connected with the home financing business and that their
successors must
be officers or directors of institutions which owned stock in
As to the other two directors, no limitation is made by the the bank.
these two directors are being selected as representatives statute and
of the public
interest.
The Federal Home Loan Bank for the Ninth District,
which comprises
the States of Arkansas, Texas, Mississippi, Louisiana
and New Mexico,
Is to be located at Little Rock, Ark., with a minimum
capitalization of
$10,000,000. The two directors representing the public
interest are
Mr. A. D. Geoghegan, President of the Southern Cotton
Oil Co., of New
Orleans. and Mr. J. F. Lucey, President of the Lucey
Petroleum Co.,
of Dallas, Tax.
The nine directors representing the home financing
business, for the
Ninth District, are:
Philip Leiber, of Shreveport, La., President of the
Shreveport Mutual
Building Association. and First Vice-President of the
United States Building
& Loan League.
W. C. Ermon, of New Orleans. President of the Equitable
Homestead
Association, and President of the Homestead Clearing House
Association.
J. C. Leigh, of Little Rock, Ark., Vice-President of
the Commonwealth
Building & Loan Association.
Volume 135
Financial Chronicle
2271
The directors representing the public interest on the
R. H. McCune, of Roswell, N. Mex., Secretary of the Roswell Building
Ai Loan Association, and President of the New Mexico League of Building &
Los Angeles Board will be Adolph Schleicher of Los Angeles,
Loan Associations.
President of the Los Angeles Chamber of Commerce and
0. W. Bos*ell. of Paris, Tex., Secretary of the Paris Building & Loan
Association, and President of the Texas League of Building & Loan AsGeorge 0. Davis of San Francisco.
sociations.
The nine directors representing the home financing business for the Los
the
Dallas
Building
&
Loan
.
President
of
E. E. Shelton, of Dallas, Tex.,
Angeles District are:
Association.
C. H. Wade of Los Angeles.
I. Friedlander, of Houston, Tex.,President, Gibraltar Savings & Building
H. V. Ketcherside of Long leach.
Association, and Second Vice-President of the United States Building &
Robert Odell of San Francisco.
Loan League.
Edwin M. Einstein of Fresno.
Gordon H. Campbell, of Little Rock, Ark., Director, Arkansas Building
Perry T. Tompkins of Berkeley.
& Loan Association.
Harry S. Wanzer of Sacramento.
E. H. Bradshaw, Jackson, Miss., member of the firm of Bradshaw &
J. Lester Miller of San Jose.
Hoover, insurance.
A. M. Franklin of Tucson, Ariz.
It. M.Tobin of San Francisco.
Directors of Federal Home Loan Bank of Des Moines—
District No. 8.
The names of those who will serve as directors of the Des
Moines Federal Home Loan Bank (District No. 8) were
announced on Sept. 28 by the Federal Home Loan Board.
With regard thereto we quote the following from the Washington account Sept. 28 to the New York "Journal of Commerce":
The Des Moines bank will have a minimum capitalization of $7,500,000.
The two directors representing the public interest are E. J. Russell of St.
Louis, President of the American Institute of Architects, and Frank Schlick
of St. Paul, Minn., former President of Fields, Schlick & Co., and former
President of the State Savings Bank of St. Paul.
Directors Listed.
The nine directors representing the home financing business for the
Eighth District are:
0. It. ICreutz of Sioux City, Iowa, Secretary, Sioux City Building Loan
dc Savings Association.
James L. McQuie, Kirkwood, Mo. of the Kirkvrood Building & Loan
Association.
-Angus Grant, Duluth, Minn., Duluth Home Building Association.
F. B. McAneney, Fargo, N. Dak., of the Gate City Building & Loan
Association.
A. C. Hunt, Rapid City, S. Dak., Secretary, Black Hills Building &
Lean Association.
A. F. Ellfeldt, Kansas City, Mo., of the Kansas City Building & Loan
Association.
Franklin P. Stevens, Kansas City, of the Safety Savings & Loan Association, Kansas City.
Col. Charles B. Robbins, *Cedar Rapids, Iowa, of the Cedar Rapids
Life Insurance Co.
H. It. Hanger of Dubuque, Iowa.
Directors Named for Federal Home Loan Bank of
Topeka—District No. 10.
On Sept. 28 the Federal Home Loan Bank Board made
known the names of those who will constitute the directorate
of the Federal Home Loan Bank in the 10th District, with
headquarters at Topeka, Kan. The Topeka Bank will
serve the States of Nebraska, Oklahoma., Kansas and Colorado. It has a minimum capital of $7,500,000. The two
directors representing the public interest are C. C. Gates
of Denver, Colo., President of the Gates Rubber Co.,
Denver, and A. U. Thomas, McAlester, Okla., sovereign
grand inspector general Scottish Rites of Oklahoma. According to a Washington dispatch Sept. 28 to the New York
"Journal of Commerce"
The nine directors representing the home financing business for the Tenth
District are:
Charles W. Thompson, Topeka, Kan., of the Aetna Building & Loan
Association, Topeka, Kan.
L.E. Rousaof Wichita, Kan.,of the National Savings & Loan Association,
Wichita, Kan.
Clarence T. Rice, Kansas City, Kan., of the Anchor Buidling, Savings &
Loan Association, Kansas City, Kan.
George E. McKinnis, Shawnee, Okla., of the Fidelity Building & Loan
Association, Shawnee.
L. C. Pollock, Bartlesville, Okla., of the Home Savings & Loan Association, Bartlesville.
W. R. McWilliams, Oklahoma City, Okla., of the Oklahoma City
Building & Loan Association, Oklahoma City.
David Rowe, Fremont, Neb., of the Nebraska State Building & Loan
Association, Fremont.
0. A. King, Denver, Colo., of the Silver State Building & Loan Association. Denver.
Can. Wilder S. Metcalf, Lawrence, Kan., of the Liberty Life Insurance
Co., Lawrence.
Building and Loan Associations in New Jersey May
Invest in Stock of Federal Home Loan Banks.
Colonel William H. Kelly, New Jersey Commissioner of
Banking and Insurance, issued notice on Sept. 23 to building
and loan associations that they may invest in the stock of
the Federal Home Loan Bank of which Franklin W. Fort is
Chairman. The law specifies that consent shall be obtained
from the Banking Commissioner before funds are invested
in the bank stock.
Directors of Los Angeles Federal Home Loan Bank—
District No. 12.
Directors for the Los Angeles Federal Home Loan Bank,
which will serve California, Nevada, Arizona and Hawaii,
were announced at Washington on Sept. 24 by the Federal
Home Loan Bank Board.
Conditional Method for Subscriptions to Federal Home
Loan Banks Devised—Institutions Ineligible Under
State Laws to Be Allowed to Subscribe Subject to
Ratification Later.
An opportunity to subscribe conditionally for stock in
the Federal Home Loan Bank System is being offered savings
banks, building and loan associations and life insurance
companies ineligible for membership under existing State
laws, according to a statement Sept. 28 by the Federal
Home Loan Bank Board. The "United States Daily" of
Sept. 29, from which the foregoing is taken, likewin said:
Conditional forms for application for membership have been issued
by the Board, but no money will be accepted for subscriptions until necessary legislation has been passed in the various States to permit the ineligible
institutions to subscribe to stock. The full text of the statement follows:
Enabling Legislation Needed.
The Federal Home Loan Bank ,Board has devised a method where by
building and loan associations, life insurance companies and savings banks
in States where they are not how eligible under State laws for membership
in the Home Loan Bank. System can subscribe conditionally for stock.
their subscriptions to become effective on enactment of enabling legislation
by their respective Legislatures.
The last survey made by the Board as to the eligibility of home financing
_
institutions in the several States showed the following:
Building and loan associations may buy stock and pledge security in
Alabama, Arizona, Arkansas, Colorado, the District of Columbia, Georgia,
Illinois, Indiana, Iowa, Kentucky, Louisiana. Michigan, Mississippi,
Nevada, New Jersey, Pennsylvania. South Carolina, Texas, Virginia,
Wisconsin and Wyoming.
Savings banks are eligible to participate in the System in Alabama,
Arizona, Delaware, the District of Columbia, Florida, Georgia. Louisiana.
Maryland, Mississippi, Montana. New Jersey, South Carolina, Texas,
Utah, Vermont, Virginia and Wisconsin.
Eligible Slates Listed.
Insurance companies are eligible in Alabama, Arkansas, California,
Delaware, the District of Columbia, Florida, Illinois, Louisiana. Maryland.
Massachusetts, Michigan. M'ssissippi. Montana, New Jersey. New Hampshire, New York. North Carolina, Oklahoma, South Carolina, Texas,
Utah, Vermont, Virginia, Washington and West Virginia.
Enabling legislation is being prepared in Missouri and Ohio.
No home financing instruction is eligible to participate in the Federal
Home Man Bank System in Connecticut, Idaho, Maine. .Minnesota.
Missouri, Nebraska, Ohio, Oregon, Rhode Island. South Dakota or
Tennessee.
To meet this situation, and in anticipation of enactment of enabling
legislation, the Home Loan Bank Board is sending "conditional" forms for
application for membership and original subscriptions for stock in the
System, to all home financing institutions in those States where either
all are now ineligible or some type may not now subscribe.
The application forms make clear that no money is to be accepted on the
"conditional" subscription until the Legislature of the State where the
institution is located enacts the necessary legislation.
The blanks contain the following explanation of the Board's action hi
pening up this opportunity to subscribe "conditionally":
"The Federal Home Loan Bank Board in its desire to serve the institutions in those States whose statutes prohibit their admission to membership
in, and purchase of stock of, Federal Home Loan banks, have decided to
allow those nst tut ons to subscribe now, for stock in the banks of their
respective districts, to take effect immediately upon the passage of enabling legislation by the Legsilatures of their respective States.
"In this way the Board can determine with greater accuracy the number
of institutions of a given State which desire to become members,the amount
of stock they will purchase, and will be better able to present to the various
Legislatures as they convene the necessity of passing enabling legislation
thereby permitting these subscriptions to become effective and in full force."
Officers Are Chosen for Branch at Chicago of Regional
Agricultural Credit Corporation District No. 6.
Appointment of personnel for principal posts in the Chicago branch office of the Regional Agricultural Credit Corporation, including that of H. A. Chetham as manager, has
been announced by the Reconstruction Finance Corporation.
The announcement was given as follows in the "United States
Daily" of Sept. 29:
The Reconstruction Finance Corporation announces appointment of the
chief officers for the branch office at Chicago, Ill., of the Regional Agricultural Credit Corporation for District No. 6. District No. 6 comprises the
States of Illinois, Missouri and Arkansas. The main office of the credit
corporation for that district is located at St. Louis, with branches at Little
Rock, Kansas City and Chicago. The chief officers of the branch at
Kansas City were announced on Sept. 14, and the officers at St. Louis
and Little Rock remain to be chosen.
Manager—H. A. Chetham.
Committee—H. A. Chetham. manager; G. A. Ryther, Vice-President
Drovers National Bank. Chicago, Ill.; T. W. Boyer, Vice-President Stockyards National Bank, Chicago, Ill.; Homer Tice, Greenview, Ill., cattle
feeder and farmer; Brent 11, Pinnell, Kansas, Ill., farmer and stockman;
2272
Financial Chronicle
J. A. Tubbs, President Nationa 1 Bank of Monmouth, Monmouth, Ill.;
Eugene D. Funk, Bloomington. Ill., large cattle feeder; M. D. Goldberg,
Cashier National Builders Bank, Chicago, Ill.; Arch M. Anderson, VicePresident Continental Bank & Trust Co. of Chicago, Ill.
Industrial Rehabilitation Committee Appointed for
St. Louis Federal Reserve District.
J. W. Harris, Chairman of the Banking and Industrial
Committee of the Eighth St. Louis Federal Reserve District, has announced the appointment of Albert B. Elias,
President of the Southwestern Bell Telephone Co., as Chairman of the Committee on Industrial Rehabilitation for the
Eighth St. Louis District, and P. B. Postlethwaite, President of the Wagner Electric Corp., as Vice-Chairman. The
announcement by Mr. Harris on Sept. 24 said:
This committee will work in co-operation with the National Committee
on Industrial Rehabilitation, of which A. W. Robertson, Chairman of the
board of the Westinghouse Electric & Manufacturing Corp., is Chairman.
The purpose of the committee will be to encourage industries to give
consideration to the modernization of their plants and equipment by replacing obsolete machinery and initiating repairs or improvements, as well
as to review their stocks on hand with the idea of replenishing at least the
which are abnormally low. It is a nationwide movement to assist and hasten
business recovery.
Mr. Elias stated that organization plans contemplate the appointment of
subcommittees at Louisville. Memphis and Little Rock, to the end that the
purposes of this campaign will be presented to all the larger industries in
the various centres throughout the Eighth District. The committee
at
St. Louis is being formed with headquarters in room 2303, 1010 Pine St.
Second Report of Reconstruction Finance Corporation
Submitted to Clerk of House. Publication Deferred
Pending Study of Ruling By Counsel of Corporation
Holding Disclosure Illegal.
The Reconstruction Finance Corporation sent its second
report, covering operations for August, to South Trimble,
Clerk of the House of Representatives, Sept. 29, and with it
was a letter and legal argument against its publication. The
"United States Daily" of Sept. 30 stated that in announcing
receipt of the report and accompanying communications,
Mr.Trimble stated orally that he would withhold publication,
pending legal advice concerning the argument which the
Corporation had advanced. The letter of transmittal was
signed by Atlee Pomerene, as chairman of the Board, and the
brief bore the signature of Mortan G. Bogue, general counsel
of the Corporation. Th3"Daily" continued:
Avoid Hasty Decision.
Arrival of the new protest against publication of details of loans made
by
the Corporation was described by Mr. Trimble as having "opened
up the
whole controversy again." He explained that the brief was a lengthy
argument and that he was not desirous of rushing post haste to a decision,
adding that he had told Chairman Pomerene that he would feel compelled
to make the brief public after his decision as to publication of the report had
been reached.
The "controversy" centers around that provision of the Relief Act requiring monthly reports to Congress and which Mr. Trimble construed as
requiring publication in connection with receipt of the first report. That
report covered loans made by the Corporation during the last 10 days of
July, the first period during which the Relief Act with its broadened powers
for the Corporation was operative.
First Report Made Aug. 21.
The report was made on Aug. 21, and the report of August loans was
expected by Mr. Trimble on the corresponding date of September. It was
not transmitted to the House Clerk, however, until more than a week after
Mr. Trimble had expected to receive it.
Yesterday (Sept. 30) Associated Press advices from Washington said:
South Trimble, Clerk of the House of Representatives, to-day postponed
a decision on whether to make public the Reconstruction Corporation's report on August loans, in view of objection to that procedure made by Atlee
Pomerene, Chairman of the Corporation Board,
The Corporation's contention against publication of the report was released by Trimble.
Pomerene said that "neither the Secretary of the Senate nor the Clerk
of the House has any such right without being thereunto especially authorized by the Senate or the House."
"The publication of the July report," he said, "caused serious embarrassment to a number of borrowers. It gave rise to much unjust criticism.
"Reports were circulated that some of the institutions borrowing were not
in good financial condition, when they were perfectly sound. This resulted
in withdrawals from some of the banks and other institutions. A number of
them have said that while the loans were of great benefit to them, the good
was largely undone by the publication.
"Our objections relate to the publication of the names, addresses, and
amount of the borrowings of the banks, building and loan associations, life
insurance companied, mortgage and credit companies, and other similar
financial Institutions, because it handicaps them in serving their depositors
and borrowers."
Trimble said that in view of the Corporation stand, "I feel justified in
withholding publication of the report until I have had an opportunity to
consider carefully the opinion. I will, as soon as possible, make known
my decision."
He had the consent of the Corporation to make public Pomerene's letter,
he said.
Trimble said to-day that "in no circumstances" would the August report
of the Corporation be made public until next week.
From the Washington advices Sept. 29 to the New York
"Times" we take the following:
An indication of Its operationeduring the period covered by the Corporation's latest report was given:to-day during its weekly conference with
Oct. 1 1932
newspaper men. For the five weeks ended Sept. 3,applications from banks.
insurance companies, building and loan associations and other financial
institutions totaled 1.222, compared with 1,521 during the preceding five
weeks. The amount involved in applications filed in the *period ended
Sept. 3 was $148,515.000, or less than half o ithe $346,511,000 requested
during the five weeks ended July 30.
Loans to railroads were excluded from these figures.
The initial report of the Corporation to the House was
given in our issue of Aug. 27, page 1423.
•
Portland (Ore.) Merchants Exchange Asks Reconstruction Finance Corporation To Stop Chinese Wheat
Sale—Contends Only 30% of Coast Growers Favor
Proposed Deal.
Opposition to the sale of another lot of Pacific Northwest
wheat to China on a credit basis and financed by the Reconstruction Finance Corporation was voiced at Portland,
Ore. by the Portland Merchants' Exchange, representing the
private grain dealers, according to a dispatch from that
city Sept. 26 to the New York "Journal of Commerce," which
went on to say:
The Exchange also claims that only 30% of the
Pacific Coast grain
growers favor the 15,000.000-bushel Project.
Strong political pressure is being brought by the
Republican Administration to influence the Reconstruction Finance Corporation
to put through
the deal, it is claimed by members of the Exchange. And while
the sale
would have immediate effect on the local market and the growers,
which
would in turn reflect advantage to the Republican party at
election, still
"what about after election when the prices would again sag?"
asked one
member of the Exchange.
Roiled by Previous Sale.
The last China wheat sale was too much for many in the local
trade,
which got more than its fill due to the continued paeans from the Farm
Board press agents. The previous sale it was claimed established
for
the first time a wheat trade with China that the Portland grain
trade
had enjoyed for many years, and on a much better basis than the
Board's
operations. The press reports also stated that the wheat had been
shipped
in American bottoms and Portland merchants later declared that most
of
It had not been.
Farm co-operative proponents of the project have enlisted the
active
aid of Governor Julius L. Meier of Oregon, the Oregon State Bankers'
Association, individual bankers of Oregon, Washington, Idaho and western
Montana, the Portland Clearing House and the Land Mortgage Bank
of Portland. Senators McNary and Stelwer and Representativ
e Butler,
too, are reported .by A. R. Shumway of Milton, Ore., President
of the
North Pacific Grain Growers' Corp., and director of the Farmers'
National
Grain Corp., to have taken an active Interest. Mr. Shumway
is a leader
in the movement.
Opposed by Portland Exchange.
In the forefront of the opposition is the Portland Merchants'
Exchange,
representing the private grain dealers, which claims that not more
than
30% of the Pacific Northwest grain growers favor the project.
J. S.
Campbell, Chairman of the Exchange committee, asserts that
strong
political pressure is being brought to bear on the Reconstruction
Finance
Corporation to reconsider its decision by advocates of the sale
that the
sale would only bring temporary relief, that the Reconstruction
Finance
Corporation would never get its money back, and that the assertion
that
Canada, Argentina and Australia are all after this Chinese business
on a
credit basis is "all hooey."
"The Canadian Board of Agriculture," he says, "has just said,
'We
have recently sold China 70,000 tons of wheat for cash. Why
should we
be interested in selling on credit?'"
Governor Meier has written the Reconstruction Finance
Corporation
urging that the transaction be approved. Indorsement of the
Portland
Chamber of Commerce, considered important, has been sought, but
the
Chamber has referred the matter to a committee of five to report
back
at a special meeting Wednesday.
Appeal to Reconstruction Finance Corporation.
The following communication has been sent to the
Reconstruction
Finance Corporation, signed by the Portland Clearing House,
Oregon
State Bankers' Association and Land Mortgage Bank of
Portland, in
support of the renewed application:
"We are advised that the Chinese Government is negotiating for
20,000,000 to 25,000,000 bushels of wheat and that the Farmers' National
Corp. has applied to your Corporation to finance this transaction.Grain
We
are further advised that Canada as well as the Argentine and
Australia
are interested in securing this business on a credit basis.
"Present price of Canadian wheat ranges 5 cents or more lower
a bushel
than our price, thus emphasizing the nature of our competition.
Exportable surplus above domestic requirements of wheat on the
Pacific
Coast, conservatively estimated at 35,000,000 bushels, which
constitutes
a threat over prices already below production cost, and growers
face the
necessity of selling within next 30 to 60 days at prices which
will not
liquidate bank and other credit extended to produce this crop.
"We believe that unless some plan can be devised for the sale of
a
portion of this surplus the low price at which the entire crop would major
necessarily sell would be a severe blow to the banking and commercial
structure
of the entire area.
To Form Wheat Pool.
"Three hundred bankers and farmers, representing about
60.000
growers of Washington, Idaho, Oregon and western Montana, grain
met in
Spokane, Wash., Monday and pledged themselves to form a
wheat pool
open to all growers who desire to participate to place in the
hands of the
Farmers' National Grain Corp. sufficient wheat to permit
tho sale of
20,000.000 bushels or more to the Chinese National Government
on credit
at the best obtainable prices.
"Such a pool is deemed necessary as Farmers' National
Grain Corp.
nor any other agency has stocks of wheat from which such a
sale could
be made. These growers urge that the Reconstruction
Finance Corporation agree to discount without recourse tho obligations
of the Chinese
National Government received for the wheat.
"The corporation already has substantial loans in the wheat producing
area, liquidation of which will be hindered by further price decline.
Failure of Deal Held Serious,
"Such declines also undoubtedly would increase the demands upon the
Corporation for loans from this section. It would seem, therefore,
that
the Corporation's own program in the agricultural section would be aided
Volume 135
2273
Financial Chronicle
by the sale, which can only be made upon credit, and that a substantial
portion of the funds so advanced would be returned to the Corporation by
liquidation of the loans now outstanding.
"Cash advances for the production of this crop range from 40 cents to
50 cents a bushel, while the present market value is about 30 cents a bushel
at country points.
"If this crop must sell at these or lower prices this difference between
production advances and selling prices would represent an extremely
serious freezing of credit or loss. It is believed that by the elimination
of 20,000,000 bushels from the surplus by the proposed sale to China
that the remainder of the crop may be marketed.on a domestic basis at
sufficiently higher prices to enable the growers to liquidate their production advances and thereby save the critical situation now existing
in both the banking and commercial structure of the producing area,
and we urge you in the strongest possible manner to co-operate with the
wheat growers, who are willing to do their part in providing the wheat
for the sale, by your accepting without recourse from the Farmers' National
Grain Corp. the obligations of the Chinese National Government which
are received in exchange.
"If this transaction is approved, it is strongly urged:
Urge Shipment in American Bottoms.
"First,in view of the tremendous number of American flag ships now
tied up in idle status and the many thousands of American sailors now
out of work and badly in need of employment, preference should be given
to American bottoms in the movement of this wheat.
"Second, that say 50% of the grain sold should be in the form of flour
milled in the Northwest.
"Third, that a fair proportion of the grain purchased should be handled
through regular grain channels which have large vested interests in this
section."
Many Growers Against Sale.
The Portland Merchants' Exchange set forth its view in a message
addressed to the Reconstruction Finance Corporation Sept. 20. In August
a group of 185 Oregon, Washington and Idaho grain growers, representing
175,000 acres, wrote Secretary of the Treasury Mills as a director of the
Reconstruction Finance Corporation protesting against any further extension of credit to China for wheat purchase. They asserted that her
credit was hazardous; that the relief of such a sale would only be temporary, and that the resultant price advance would shut them out of
other markets.
Mr. Campbell, claiming that the proposed credit sale will only serve to
spoil private cash sales to China, says that no business has been done in
this area in weeks because the price of wheat is about 8 cents out of line
with the world market, and that the sale would only serve to throw it
further out of line and prolong its disparity with the world price.
Admittedly, he says, the situation of the country banks is serious,
as they have advanced far more than they should to the wheat growers.
but relieving them by selling wheat to China on doubtful credit with
Reconstruction Finance Corporation money would be the most expensive
way of aiding them.
Country Banks Overloaned on Crop.
Why not, he says, have the Reconstruction Finance Corporation advance say, 10 cents a bushel instead, so that the banks can get clear and
the wheat move out at the world market; that is, using the 10 cent advance
to bring the grain down to the world level.
If the 20,000,000 bushels are sold to China the price being pushed uP,
as it was the last sale, far out of line with the world price, he asks, what
about the remaining surplus of 30,000,000 bushels?
interest on mortgage bonds might be forwarded without
delay.
Two roads withdrew their applications for loans from the
Reconstruction Finance Corporation viz: Missouri Pacific
RR. for a loan of $3,000,000 and the Fort Smith Subiaco &
Rock Island RR. for a loan of $75,000 and hearings before
the Inter-State Commerce Commission in both cases have
been dismissed. In the case of the Missouri Pacific, it is
understood that the carrier obtained the necessary funds for
its immediate needs from the Railroad Credit Corporation.
The Commission denied the application of the Bartlett
Western Ry. for a loan of $5,000 on the ground that its
"present financial embarrassment is due to causes other than
the present financial depression which we can not assume
will be removed in the future, and that its prospective earning
power and the security offered are not such as to afford
reasonable assurance of the applicants ability to repay the
loan."
Additional loans aggregating $14,925,419 have been applied
for by seven roads, the largest of which is 86,800,000 by the
Erie RR. This brings total applications received to date
to approximately $431,734,291. Press dispatches from
Washington Sept. 30 had the following regarding the loan
to the Chicago & North Western Ry.:
The loan, which Is to extend two years, was made contingent on liquidation of the carrier's order for $1,910,500 on the Railroad Credit Corporation, which is now held by the Reconstruction Finance Corporation.
Of the sum, $5,000,000 is to be advanced Oct. 13 to repay one-half
of a bank loan; $4,619,891 on Oct. 31 to pay interest on equipment trust
obligations due Nov. 1; $1,565,465 on Nov. 30 for interest on equipment
trusts due Dec. 1, and $1,275,994 on Dec. 31 for interest on equipment
trusts due Jan. 1 1933.
The bank loans, totaling $5,000,000 and arranged through Kuhn,Loeb &
Co., are held by the following banks in the following amounts: National
City Bank, $3,000,000; Central Hanover Bank & Trust Co., $1,000.000;
Continental Illinois Bank & Trust Co., $1,000,000; Chase National Bank,
$1,000,000 and the First National Bank of Boston, $1,000,000.
The carrier offered as collateral for the loan $21,292,800 of stocks and
bonds. These will be pledged with the Corporation, and dividends will be
assigned as absolute.
The reports of the Commission in approving the loans
follow:
Central RR. Co. of New Jersey.
The Central RR. Co. of New Jersey, on Sept. 16 1932, filed with us
an application to the Reconstruction Finance Corporation, hereinafter
called the Finance Corporation, for a loan under the provisions of Sec. 5
of the Reconstruction Finance Corporation Act, approved Jan. 22 1932
as amended.
The Application.
The applicant requests a loan of $500,000, to be advanced in approxi-
mately equal monthly installments, of which 8450,000 is to be used in
Work Loan for Central RR. Co. of New Jersey—Chicago repairing
locomotives and freight and passenger cars, to be expended at the
& North Western Ry. Receives Additional Loan approximate rate of $90,000 a month over a period of five months, as
of $12,461,360—Two Other Small Loans Approved— follows: At Elizabethport shops, employing 351 men, 11 locomotives, 11
cars, and 56 box cars, expenditures aggregating $77,1198; at
Nickel Plate Loan Conditions Modified—Two passenger
Bethlehem shops, employing 27 men, 4 locomotives, $4,754, and at Ashley
Roads Withdraw Applications for Loans—Small shops, employing 38 men, 124 coal cars, $7,248.
The sum of $50,000 is requested for repairing marine equipment used for
Road Denied Loan—Additional Applications
handling freight traffic in New York Harbor. The units of equipment
Filed,
and the amounts to be expended on each are, tug Jersey Central, $7,500;
The Inter-State Commerce Commission has approved tug Ashley, $8,000; steam lighter No. 26, $6,500; steam lighter No. 27.
$5,500; steam lighter No. 28, $6,500; steam hoist lighter No. 405. $2,500;
a loan of $500,000 to the Central RR. Co. of New Jersey float
No. 44, $2,000; steel float, $6,500, and wooden float No. 26, $5,000.
from the Reconstruction Finance Corporation, the proceeds The applicant estimates that these repairs will require the employment of
for five months.
45
men
to be used in repairing equipment, thus stimulating emThe applicant holds in its treasury $1,074,000 of authorized bonds which
ployment. The Commission approved also an additional may
be issued at any time at such rates of interest, not exceeding 5%,
loan of $12,461,350 to the Chicago & North Western Ry. as may be fixed. The first mortgage bonds are secured by a first lien upon
property of the applicant and of the several proprietary companies
the
to enable the road to pay off obligations to banks and fixed all
subject to outstanding equipment obligations and by the pledge of certain
interest charges. A loan of $7,600,000 had already been of the securities owned by the applicant.
advanced to this road from the Corporation.
The value of the applicant's property on June 30 1918, as found by us,
Loans to two additional roads totaling $167,387 viz.: including $3,100,000 for working capital, with net additions and betterments reported to Dec. 31 1931, amounts to $158,946.014.
Columbus & Greenville Ry.,$60,000, and Fonda,Johnstown
During the period 1922-1930,the applicant's net income before payment of
& Gloversville RR., $170,387, were also approved. This fixed charges averaged $9.211,195. Interest on funded and unfunded
for lease of roads averaged $5,413,232. The applicant thus
brings the total loans approved to date to approximately debt and rentcharges
earned fixed
an average of 1.7 times. In 1931 its net income
$332,607,693 to 66 roads.
was $31,326. Based on results of operations for the first seven months
The Commission on Sept. 24 modified the conditions it of 1932 and estimates for the remainder of the year, the applicant forecasts
imposed in approving a loan of $6,800,000 to the New York a deficit in net income of $1,086,257 for the full year 1932.
Conclusions.
Chicago & St. Louis RR, from the Reconstruction Finance
consideration of the application and after investigation thereof,
Corporation, deciding to permit an advance of $1,200,000 weUpon
conclude:
for payment of interest obligations without the road's com1. That we should approve a loan of not exceeding $500,000 to the
plying with the conditions. Of the total loan as originally applicant by the Finance Corporation, for a period not to exceed three
years from the dates of the advances thereon, to be used for the purpose of
approved,the larger part,$5,600,000 was to be used in paying repairing
locomotives, freight and passenger-train cars and marine equipoff one-fourth of the principal of an issue of gold notes and ment as more fully set forth in this report, the loan to be
advanced to the
interest of $600,000 due on Oct. 1. The remaining $1,200,- applicant in installments in reimbursement of cash expenditures hereafter
made by it for the repair of the equipment, as aforesaid.
000 was for payment of interest on mortgage bonds maturing
2. That the applicant should agree with the Finance Corporation that
on the same date. The total advance authorized by the during the life of the loan it will not create any additional indebtedness
secured
by a lien upon its physical property (other than by the sale of
'Commission was conditioned, however, on the company's
bonds already
by us to be certified under its existing mortability to obtain substantially unanimous consent from the gages) without authorized
making provision to secure the loan by equal participation
holders of the notes that in return for payment of a quarter In such lien.
3. That the applicant should deposit with the Finance Corporation as
of the face amounts, the remaining 75% was to be extended security
for the loan an assignment, in form satisfactory to the Finance
for three years. Receding from this position, the Com- Corporation, of its distributive share in the fund administered by the
mission held, Sept. 24, that the condition need apply only Railroad Credit Corporation under its "Marshalling and Distributing Plan,
to the $5,600,000 for payment of principal and interest on 1931."
4. That before each advance upon the loan be made the applicant should
the maturing notes, and that the $1,200,000 for meeting deposit with the Finance Corporation and with us a verified statement of
2274
Financial Chronicle
cash expenditures hereafter made by it in connection with the repair of
said equipment.
5. That no advance be made upon the loan in excess of such total expenditures previously reported by the applicant to the Finance Corporation
and to use in connection with the repair of said equipment.
6. That no advance be made upon the loan in reimbursement for expenditures for work performed upon said equipment or for materials purchased prior to the date of the approval of this loan.
Columbus & Greenville Ry.
The Application.
The amount of the loan applied for is 16100.000, to be repaid three years
from the date or dates thereof, and to bear interest at a rate to be fixed
by the Finance Corporation. The purposes of the loan and the dates
upon which funds are required are as follows:
On or before Sept. 1 1932:
Funds to complete construction of new steel bridge over Big
Sand Creek, near Valley Hill. Miss
$49,500
On or before Oct. 1 1932:
Funds for restoration of roadbed,straightening and lining up
track and trestles, and bank protection work between mile
posts 92 and 112
10,500
On or before Dec. 15 1932:
Funds to pay taxes for the year 1932 and for other purposes
to be agreed upon by the applicant and the Finance Corp
40,000
$100,000
The applicant states that it has been unable to obtain the necessary funds
from any ,,ther source for the reason that it is unable to float bond issues
or sell stock and has no strong oanking affiliations. An effort was made
to borrow money from a large bank in Memphis, Tenn., but without
BUCCe&S.
The applicant Is a party to tne "Marshalling and Distributing Plan,
1931" of the Railroad Credit Corpora ion, but has neither applied for
nor received any loan from that Corporation. For the first six months
of 1932 revenues from increases in rates, amounting to $6,862.52, were
paid by the applicant to the Railroad Credit Corporation. For the remaining six months of 1932 such revenues are estimated at a maximum
of $6,900 and a minimum of $5,185.
Necessities of the Applicant.
On Jan. 12 1932 flood waters in Big Sand Creek rose to an unprecedented
height, undermining and completely wrecking the piers and bents of the
bridge at Valley Hill, Miss., beyond hope of salvage. A temporary structure was erected only to be washed out a few days later. A second temporary trestle was then driven, which is now being used as falsework for
the erection of a new steel oridge on concrete piers. The application
contains copies of the contract, specifications and plans under which
this bridge is being constructed. Under the terms of the contract tne
work was to commence on April 25 1932, and be completed on or before
Aug. 31 1932. The cost of the work, as estimated by the applicant's
engineer. Is $49,581.04. The applicant desires $49,500 on or before
Sept. 1 1932 to pay the contractors for this new structure and for the
removal of the temporary trestles.
An additional $10.500 IS requested as of Oct. 1 1932 for the purpose
of restoring the main track of the applicant to its original and proper
location in Big Sand Creek bottom as a result of the flood of January
1932. Approximately 1.100 feet of embankment and trestle which were
washed out at this time have been rebuilt at a cost of $3,500. The remaining work of repairing roadbed, straightening and lining up track
and bank protection at mile posts 100.7. 101.5 and 104.6 Is estimated
by the applicant's engineer to most $10.635.30.
By letter dated Aug. 8 1932 the applicant advised that it was unable
to furnish a correct itemized statement of the $40,000 requested on or
before Dec. 15 1932 for the payment of taxes for 1932 and for other un
specified purposes. As of the same date the applicant furnished a statement of the estimated taxes applicaole to the year 1932 amounting to
$41,451.25. It further states that none of the county levies have been
made nor has the property been appraised or valued by the Mississippi
State Tax Commission, for ad valorem taxes for 1932. For the year
ended Dec. 31 1931 the applicant charged $46,906 to railway tax accruals.
The cash balance of the applicant on June 30 1932 was $149.929. Exclusive of the proceeds of the loan applied for, the applicant estimates
cash balances of $123.284, $101,248, $65,749, $39.150 and $50.4')3 as of
the last days of July, August, September. October and November, and
a cash deficit of $31,245 on De .31. The July estimate Is based on actual
figures for the first three weeks, and for the remaining months receipts
were calculated at 40% and disbursements at 25% under those for corresponding months in 1931.
Security.
As security for the loan requested, the applicant offers a chattel mortgage or trust deed on its rolling stock which is said to oe free from all
liens or claims of any kind. The units of equipment underlying the proposed mortgage and the values placed thereon by the applicant are as
follows:
Units of Equipment30 Locomotives
$167.500
81 Freight-train cars
65.150
20 Passenger-train units
209,000
Company-servic
units
e
63
65.000
$506.650
The applicant states that the above equipment is in good operating
condition and that it has been kept in reasonable repair. The locomotives were built at various dates from 1888 to 1906. They were all acquired
second-hand by the applicant. The freight-train cars were all acquired
second-hand and include 26 box cars, 22 gondola cars, 21 flat cars and
12 caboose cars, almost all of the wood-body and underframe type. Many
of these cars have been rebuilt. The passenger-train equipment cornprises four baggage and mail cars, two express cars and nine coaches,
all acquired second-hand, and five units of gas-electric and gas-motor
equipment, purchased new, The company-service equipment consists
of a weed ourner, a ditching machine and a pile driver, purchased new
and stated to be modern and efficient: and 36 boarding cars, eight tool
and supply cars, two air dump cars, two water transport cars and 12
ballast cars, all acquired second-hand or converted from revenue equipment.
Giving effect to the repairs and replacements that have been made
to these units of equipment, our Bureau of Valuation has estimated cost
of reproduction, less depreciation and scrap value, as of Aug. 1 1932 as
follows:
Cost of
Reproduction
Scrap
Units of EquipmentLess Deprec'n. Value.
Locomotives_
$86.678
30
$17,525
81 Freight-train cars
26.496
6.622
110.421
20 Passenger-train units
3,100
29.678
63 Company-service units
5,186
Total
$253,273
$32,433
Oct. 1
1932
Schedule L of the application shows that the applicant owns unpledged
$100.000 of United States Government Fourth Liberty Loan 434% bonds,
due 1933-1938. During 1932 these bonds have sold from 98 2-32 to
103 2-32. They are selling currently (Aug. 27) at 102 31-32.
Conclusions.
Upon consideration of the application and after investigation thereof,
we conclude:
1. That we should approve an immediate loan of not exceeding $60,000
to the Columbus & Greenville Ry.
. by the Finance Corporation for a period
not to exceed three years from the date thereof, the proceeds to be used
for the following purposes:
(a) To pay the completed construction cost of the new steel bridge
over
Big Sand Creek, near Valley Hill, Miss.
(b) To pay for restoration of roadbed and track and bank protection
work in Big Sand Creek Valley at mile posts 100.7, 101.5 and
104.6.
2. That the applicant should pledge with the Finance Corporation
-as
collateral security for the loan an equal principal amount of the
applicant's
equipment trust certificates having a paramount first lien upon
certain
of the applicant's locomotives, passenger and freight-train cars
and work
equipment,such certificates to be issued under an equipment trust indenturo
in form which shall be satisfactory to the Finance Corporation.
3. That the loan should be further secured by the unrestricted endorsement and guaranty of the note or notes evidencing the loan
by A. T.
Stovall, of Columbus, Miss.
4. That the applicant should covenant with the Finance
Corporation
that during the life of the loan it will neither dispose of nor
hypothecate
$100.000, principal amount, of United States Government
4 % Fourth
Liberty Loan bonds of 1933-1938 now held free and
unencumbered in
the applicant's treasury.
5. That the applicant should further covenant with the
Finance Corporation that during the life of the loan charges to
operating expenses
under Account VII "General." as defined in our Classification
of Operating
Revenues and Expenses of Steam Roads, effective July
1 1914, shall nol
exceed In any one year such ratio of the total operating expenses
as defined
by that Classification as may be agreed upon between the
applicant and
the Finance Corporation.
Fonda Johnstown & Gloversville RR.
On July 20 1932 the Fonda Johnstown & Gloversville RR,
filed with
us an application to the Reconstruction Finance Corporation
for a loan
under the provisions of Section 5 of the Reconstruction
Finance _Corporation Act, approved Jan. 22 1932, as amended.
The Application.
The applicant requests a loan of $1- 0,387.35 for a period of
not exceeding three years. The purposes for which the proceeds of
the loan
are proposed to be used are as follows:
When Required, Amount.
To pay and retire note issued May 2 1932 to New
York Trust Co., and payable on demand, evidencing loan for purdpose of paying interest upon
hi
To reimburse the applicant for Internet paid July 1 Immediately $50.000.00
1932 on first mortgage bonds
11,250.00
To reimburse the applicant for interest paid July 1
64
1932 on second mortgage bonds
18,000.00
To reimburse the applicantfor int. paid July 1 1932
under guaranty °tint. upon Johnstown,Gloversville & Kingsboro Horse RR. bonds
1,250.00
To reimburse the applicant for payment Into sinking fund on July 1 1932 of Johnstown. Glovers611
v lie & Kingsboro Horse RR. mortgage
500.00
To finance purchase of new equipment for the year
1932. namely:
(a) To reimburse the applicant for cash paid to
J. G. Brill & Co. as initial payment upon
purchase of five new aluminum, single-end,
double-truck, high-speed motor cars, paid
to said company on Feb. 18 1932
25,000.00
(b) To acquire, for purpose of retirement, four
notes for $1,625. 31,618.75. $1,612.50 and
$1.606.25, maturing March 18. April 18,
May 18 and June 18. respectively, issued
to said J. G. Brill & Co. by the applicant
to represent part of the purchase price of
said high-speed motor cars, and secured by
an agreement of conditional sale of said
motor cars, which said notes have been purchased and acquired by the Coal Company
66
of Fulton County
6,462.50
(c) To pay and retire six notes. numbered serially 5 to 10 inclusive, representing
of
cars, payable to said J. G. Brill Co. upon
the 18th day of each month from July to
Dec. 1932, inclusive, namely:
Note No. 5
July 18 1932
1,600.00
Note No. 6
Aug. 18 1932
1.593.75
Note No. 7
Sept.18 1932
1,587.50
Note No. $
Oct. 18 1932
1.581.25
Note No.
Nov.18 1932
1.575.00
Note No. 10
Dec. 18 1932
1,568.75
To pay the General Electric Co. on account of installment of automatic substations on the applicant's electric lines:
(a) 121i% of total cost
Immediately 11,125.00
(b) 121§% of total cost
Nov. 1932 11,125.00
To finance payments on account of purchase of
3 Mack-Internat'l motor busses for the year 1932:
(a) To reimburse the applicant for payments
made on or to be made on account of purchase price of said busses to and including
July 22 1932
Immediately
3,678.00
(b) To finance future payments on account of
the purchase price of said busses
Aug. 22 1932
525.00
Sept.22 1932
525.00
Oct. 22 1932
525.00
Nov. 22 1932
525.00
Dec. 22 1932
525.00
To pay the following paving tames and interest:
(a) City of Amsterdam
Immediately
8,604.81
(b) City of Johnstown
10.641.98
(c) Village of Fonda
2,621.81
Total
$170,387.35
Of the above total, $63,506.25 represents past expenditures
for which
the applicant desires reimbursement of the treasury through
the loan.
In practice, however, the proceeds of this portion of the loan
will be do
voted to the payment of overdue bills and traffic balances. The
remainder
of the amount requested, $106,881.10, will be expended for
the several
purposes stated in detail above.
The applicant states that it is unable to obtain financial aid
from its
stockholders or bondholders, or from the local banks. Under the
terms
of the applicant's mortgages no additional bonds may be issued for pledge
or sale. These mortgages consist of the first consolidated
refunding
mortgage, 1947: the 50-year consolidated general refunding mortgage,
1950, both Covering the steam property, and the 59-year consolidated
general refunding mortgage, 1952, representing a third lien on the
steam
property and a first lien on the electric lines. As commonly referred
to.
Financial Chronicle
Volume 135
these indebtures are known, respectively, as the applicant's first, second
and third mortgages. The question of the aNlity of the applicant to
obtain funds upon reasonable terms through banking channels or from the
general puolic is committed by Section 5 of the Reconstruction Finance
Corporation Act primarily to the Finance Corporation.
On Feb. 29 1932 the applicant filed an application with the Finance
Corporation for a loan of $315.500. On April 4 1932 an amended application was filed reducing the amount requested to $179,250. Both
the original and amended applications were subsequently withdrawn
and the proceedings dismissed by our order of June 2 1932. in Finance
Docket No. 9182.
Security.
As security for the loan, the applicant offers the following for pledge:
Value
Assigned by
Applicant.
1. 1,050shares ofcommon capitalstock ofthe Coal Co.ofFulton
County
1222.530
2. 83shares of capital stock of the Sacandaga Park Co
22,500
3. Assignment of rentals payable to applicant by the Coal company as lessee of certain coal sheds and yards in Gloversville.
Johnstown and Fonda. Three years
27.000
8272.030
The 1,050 shares of common stock of the Coal Co. constitute all the stock
of that class and are all owned by the applicant. There are 1.000 shares
of preferred stock outstanding in the hands of local parties. Both classes
of stock have a par value of $100 per share. The applicant's holdings
of common stock are carried on the books at their cost in 1900, viz..
$222.529.60. The balance sheet of the Coal Co. shows capital assets
In the form of land, buildings, equipment, dtt., as 8192,863; other investments. cash,inventories, &c., as $140,9.l8, and total assets as $3.33,831.
Deducting accounts payable, the par amount of preferred stock, and the
amount of accrued depreciation shown, there would remain 1126.024 for
the common stock equity. The applicant, however, submits a recent
appraisal of the property showing the present value of land and buildings.
after depreciation, to be $119.104, as compared with a depre,iatel value
of $57.689 for the same property as carried on the Coal Co.'s books. On
the basis of this appraisal the common stock equity would amount to
$187.439.
The income statement of the Coal Co. shows that dividends were paid
annually on both classes of stock from 1922 to 1930, and on the cumulative
preferred in 1931. During the 10-year period, the average net income
was $35,141 per annum, after taxes, interest and depreciation. In 1931
the net earnings decreased to $15,107. During the first four months of
1932, however, they were increasing, as is shown by the fact that a net
income of $8.767 was reported. The business handled is now practically
confined to anthracite coal, as the company is unable to compete with
the mines in furnishing bituminous coal to the Industries on the line.
The total tonnage handled had gradually declined in recent years as flil
1927, 64,713 tons; 1928, 59,607 tons; 1929, 54,366 tons: 1930. 53.837
tons; 1931, 48,473 tons. The business, however, appears to be well established and has been profitable even during the recent depression.
The common capital stock of the Coal Co. is now lodged with the New
York Trust Co. as part security for the loan of $50,000 to the applicant
It Is without ascertainable market value. The applicant will agree that
any common-sock dividends which may be declared and paid during
the term of the loan will be turned over to the Finance Corporation and
credited to the &PPR ant's account. It is impracticable to impose any
conditions restricting the payment of regular 7% dividends on the preferred stock.
The 83 shares of capital stock of the Sacandaga Park Co., having a
par value of $8.300. are also pledged with the New York Trust Co. This
constitutes the entire issue of stock of the Park company, and it is all
owned by the applicant. The Park company owns two frame houses, two
garages and five par els of land, the whole appraised at $45.826. It
also owns 79 shares of the common stock of the appli ant. Negotiations
are pending for the sale or lease of certain property at Fort Johnson to an
oil company, and it is expected that. if sold, the property will bring 125,000,
or $11,000 more than its appraised value. In this case also, the stock
offered for pledge has no known market value.
With respect to the proposed assignment of rentals payable to the applicant by the Coal Co. at the rate of $9,000 a year, it appears from the
income statements that the earnings, even in the unfavoraole year 1931,
were ample to cover such rentals. The applicant receives additional
rentals of approximately $10,500 per annum from 32 individuals and
companies using various buildings and parcels of land. These are not
generally covered by long-term leases and are, therefore, not readila
assignable. The applicant, however, is willing to set aside these receipts
in a special fund and to apply, at stated periods, the money so accumulated to the payment of interest on the loan or the reduction of principal.
The applicant's capital structure is composed of 13.000.000, par value,
of capital stock; $7,000.000 of bonds, and $68.750 of car trust notes.
The investment in road and equipment is reported at $10.149.165 and the
total assets at $11,758,682. It is stated that $1,288.382 was expended
for additions and betterments between 1912 and 1931, and that none
of these expenditures was capitalized. We have not made a valuation
of the applicant's railroad nor have we tentatively stated the value thereof.
However, we have compiled an engineering report upon the applicant's
physical property other than land, and also a report upon the area, clasatfication and value of the applicant's lands. In the engineering report,
cost of reproduction new of the owned and used property, as of De 31
1927, is stated to be $6.295.563. and cost of reprodu tion, leas depre iation. $4,081,837. In the land report the value of the owned lands used
in common-carrier servi e is stated as $562.712. Since Dec. 31 1927 the
net of additions and oetterments and retirements to and including Dec.
31 1931 has resulted in a decrease in investment in road and equipment
of $191,852. The value of owned non-carrier property, as appearing
in the land report, is $897,952 as of Dec. 31 1927. This Includes the
sum of $9,041 for non-carrier structures on common-carrier lands. Since
Dec. 31 1927 net changes to and Including Dec. 31 1931 have reduced the
value of the applicant's non-carrier property, as stated in the land report,
by the sum of $133,643, leaving $764,309.
The Johnstown, Gloversville & Kingsboro Horse RR., on account
of which the applicant requests a loan of $1,750, is operated under a lease
agreement dated Nov. 13 1893. The applicant guarantees the principal
and Interest on $50,000 of bonds of this subsidiary, and is obligated to
-pay 8% dividends annually on $50,000 of its capital stock. It has also
agreed to Pay $2.000 a year into a sinking fund to retire the bonds and
stock of the subsidiary.
The assessments for paving in Amsterdam, Johnstown and Fonda.
for which the applicant requests an immediate advance of $21,868.60,
represent the balances due on charges incurred in 1927. 1928 and 1929.
In support of its ability to repay the loan the applicant estimates that
its cash position on Dec. 31 1932 will be improved to the extent of $21.887,
as compared with Dec. 31 1931, due largely to the economies which were
put into full effect about the middle of the year. Based on these economies
2275
and on the traffic handled in 1932, a net income of $65,000 is estimated
for the 12 months ending June 30 1933. If there should be an increase
of 10% per annum in such net income, the total for the five years ending
June 30 1937 would be $425,000, and if ac rued depredation and amortization charges oe added back, the total amount available would ee
$644.575. An estimate based on the proposed economies and the gross
revenues enjoyed in 1931 indicates a net income of $119,339 per annum.
The rate of income necessary to repay the principal amount of the loan at
the end of three years is approximately 856.800 per annum. This amount
can evidently be earned without a full recovery of traffic or a full realization
of the economies as estimated.
The applicant has for many years furnished an essential transportation
service in the local territory and it is reasonable to assume that it will
again operate on a profitable basis.
Conclusions.
Upon consideration of the application and supporting data, and after
Investigation thereof, we conclude:
1. That we should approve a loan of not to emceed $170.387 to the
Fonda, Johnstown & Gloversville RR. by the Reconstruction Finance
Corporation for a term not exceeding three years,
from the making thereof,
for the following purposes:
(a) Reimbursement of the applicant's treasury in the amount of $63,506
for expenditures made in connection with bond interest and sinking fund
payments on July 1 1932, the purchase of five motor cars, and the purchase of three motor buses, all as hereinbefore described; such funds,
however, to be expended by the applicant in the payment of a like amount
of overdue indebtedness for materials, supplies, services and traffic
balances.
(b) Payment of demand note in favor of the New York Trust CO..
issued May 2 1932. 850.000; discharge of four notes. aggregating $6.462.50,
representing payments made to J. G. Brill & Co., and now held by the
Coal Co. of Felton County; payment of notes Nos. 8.9 and 10, aggregating
$4.725 in favor of J. G. Brill & Co.: payment of $22.250 to the Genera
Electric Co. on account of cost of installing three substations: payment
of 31,575 to the Mack-International Motor Truck Co. for the balance
due on three motor buses purchased, and payment of $21.868.60 to the
cities of Amsterdam and Johnstown and the village of Fonda, N. Y.,
for the balances due on assessments against the applicant for paving.
2. That the Finance Corporation will be adequately secured by the
pledge of 1.050 shares of the common capital stock of the Coal Co. of
Fulton County. 83 shares of the capital stock of the Sacandaga Park Co.
and the assignment of all rentals payable to the applicant by the Coal Co.
during the term of the loan; provided, that the applicant agrees with
the Finance Corporation to (a) apply any dividends received by it from
the Coal Co. stock to the payment of interest on, or the reduction of principal of, the loan; (h) pay to the Finance Corporation quarterly, or at
such periods as the Finance Corporation may require, all rentals received
by it for land, buildings, and other property not covered by the Coal Co.'s
lease, such payments to be credited to the interest or principal of the
. loan, and (c) issue during the term of the loan no bonds which will represent a lien upon the railroad property additional to the liens now existing
under th. three mortgages described.
Commissioner Mahaffie, dissenting, said:
The security found adequate for the loan of $170.387 consists principally of the common stock of a coal distributing company. The Coal
Co. has outstanding $100.000 of preferred stock, which takes precedence
as to earnings and as to assets. The value of the common stock is dependent almost entirely on good-will. In liquidation it seems doubtful
If there would be any assets applicable to it. Its earnings, of course,
are dependent on the future of its retail coal business. Additional collateral consists of the stock of a park company which does not appear
to have any appreciable earning power, and an assignment of rentals
payable to the applicant by the Coal Co. for the use of certain property
belonging to the former. This assignment of rentals appears to me to be
of negligible value as collateral because the property is already subject
to the lien of applicant's mortgage and in case of default the assignment
would cease to be operative. I am unable to concur in the conclusion
that the security is adequate.
I am authorized to say that Commissioner Brainerd joins in this expression of opinion.
New York Chicago & St. Louis RR.
In our fourth supplemental report in this proceeding, issued Sept. 10
1932, we approved a loan of $36,800,000 to the New York Chicago & St.
Louis RIt, by the Reconstruction Finance Corporation, under the provisions of Section 5 of the Reconstruction Finance Corporation Act,
approved Jan. 22 1932, as amended. The loan was to no used for the purpose of paying 81.183.135 of interest on the applicant's bonds, due on Oct.
1 1932. 8900.000 of interest on the applicant's three-year unsecured gold
notes due on the same date, $16,865 of taxes and $5.000.000. or 25%, of
the principal of said three-year notes maturing Oct. 1 1932 in the amount
of $20.000,000.
As stated in the application, if unable to obtain a loan sufficient to
pay the three-year notes in full, an alternative plan was to seek a loan
sufficient to pay 50% of the notes, upon the agreement of substantially
all of the noteholders to extend the remainder to a later date. Our approval of the loan was conditioned, in part, as follows:
That before any advance upon the loan be made, the New York. Chicago
& St. Louis RR. deposit with the Reconstruction Finance Corporation
evidence satisfactory to that Corporation that the holders of substantially
all of the New York Chicago & St. Louis RE.6% gold notes will extend
75% of the principal thereof for a term of not less than three years from
Oct. 1 1932.
On Sept. 21 1932 the applicant advised us that it had earnestly endeavored
to comply with this condition but that because of the shortness of time
between the issue of the supplemental report and the date upon which
the bond interest is due, and further because of the change from the proposed plan to pay 50% of the notes in cash to the approved plan permitting the payment of only 25%. it will be impossible for it to obtain
the consent of the noteholders to the plan prior to Oct. 1. It represents
that serious consequence would result from its failure to meet its interest
obligations on that date, and requests that the portion of the loan, amounting to $1.200.000 required to meet Interest on mortgage bonds and taxes
be relieved of the condition quoted above,leaving only the loan of$5.600,000
subject thereto.
Conclusions.
Upon further consideration of the application and after investigation
thereof, we conclude:
1. That paragraph 4 of the conclusions contained in the fourth supplemental report in this proceeding should be amended to read as follows:
4. That before any advance be made on the loan of $5,600,000 required
to pay principal and interest of the applicant's three-year unsecured notes
due on Oct. 1 1932 the applicant should deposit with the Finance Corporation evidence satisfactory to that Corporation that the holders of
substantially all of the applicant's 6% gold notes will extend 75% of the
principal thereof to a maturity date not earlier than the maturity date of
the loan.
2. That paragraph 3 of the certificate in this proceeding should be
amended to read as follows:
2276
Financial Chronicle
3. That before any advance be made on the loan of $5,600,000 required
by the New York Chicago & St. Louis RR. to pay principal and interest
of its three-year unsecured notes due on Oct. 1 1932. said railroad company deposit with the Reconstruction Finance Corporation evidence
satisfactory to that Corporation that the holders of substantially all of
the 6% gold notes of the said railroad company will extend 75% of the
principal thereof to a maturity date not earlier than the maturity date
of the loan.
Applications for loans have been made by the following
roads:
Baltimore & Ohio RR
Chicago & North Western Ry
Erie RR
Gainesville & Northwestern RR
Lehigh Valley RR
New York New Haven & Hartford RR
Pittsburgh & West Virginia By
$3,000,000
1,000,000
6,800,000
22.000
3,000,000
700,000
403,419
Baltimore & Ohio RR.
The Baltimore & Ohio RR. Sept. 28 asked the Inter-State Commerce
Commission to authorize a $3,000,000 work loan. The road intends to
use the money so that'the number of employees will be increased. It
proposes to use the money to rebuild locomotives and to construct 820
new all-steel gondola type freight cars. The road proposes also to offer
to the Reconstruction Finance Corporation its note as security for the
loan, and the note would be secured by the road's equity in collateral
now in the hands of the Corporation as collateral behind the $32,500,000
loan already granted. Also the note will have equity as well in securities
which the road proposes to pledge with the Reconstruction Finance Corporation for a loan of $31,625,000 which has be n approved by the Commission, but has not as yet been made by the Reconstruction Finance
Corporation.
Chicago & North Western Ry.
A loan of $1,000,000 from the Reconstruction Finance Corporation for
roadway maintenance materials, principally ties, has been requested by
the Chicago & North Western By. to promote employment. Fred W.
Sargent, President. stated that the road was not in need of additional
ties, The loan is sought in response to the efforts of the Corporation to
relieve unemployment with "work loans."
Erie Railroad.
The Erie RR. has asked the Inter-State Commerce Commission's
approval for a further loan of $6,800,000 from the Reconstruction Finance
Corporation to pay past due vouchers, interest obligations and taxes.
The road offers its refunding and improvement 6% 30-year bonds as
collateral security for the further loan. The road desires the additional
funds in five installments, including $1.300,000 as soon as practicable
to be used to pay the past due vouchers. An additional $1.000.000 is
desired on or before Oct. 31; $1,900,000 on Nov. 28; $493,000 on Dec. 13.
and $2,107,000 on Dec. 30 1932,
The application states that the road is also applying to the Railroad
Credit Corporation for loans of $1,000,000, $130,000 and $1,670,000 to
meet, in part, fixed interest obligations due Nov. 1, Dec. 15 and Jan. 1
1933, respectively. To the extent that such loans are made available,
the applicant will not require funds from the Reconstruction Finance
Corporation.
5 The total collateral offered is $10,200,000 of the refunding and improvement bonds, if a loan of $6,800,000 is made, or a lesser amount if a smaller
advance is approved. Collateral pledged under outstanding $7,233,000
loans aggregates $8,743,000, of which $6,105,000 is in consolidated general
llenbonds and $2,638,000 general mortgage convertible 4% bonds.
Gainesville & Northwestern RR.
The Gaineiville & Northwestern RR. has asked the Commisdon for
authority to borrow $22,000 from the Reconstruction Finance Corporation •
to meet current accounts, repairs and anticipated deficits. Receiver's
certificates are offered as collateral security.
Lehigh Valley RR.
The Lehigh Valley RR. has asked the I.-S. C. Commission's approval to
borrow additional $3,000,000 from the Reconstruction Finance Corporation
to pay fixed charges and taxes. Road offers its 5% general and consolidated mortgage bonds of 1903 as collateral security.
New York New Haven & Hartford RR.
The New York New Haven & Hartford RR. has asked the Commission's
approval to borrow $700,000 from the Reconstruction Finance Corporation
for three years to be spent in repairing passenger and freight locomotives
and coal cars. The note to be issued for the loan would be secured by
certificates for shares of stock of the Old Colony RR., which the New Haven
owns. The application states the repairs would provide increased employment and stimulate business. About 400 men will be given employment for a period of six months in the repair of 93 locomotives and 160
freight cars, it is said.
Pittsburgh & West Virginia Ry.
The Pittsburgh & West Virginia By. has asked authorization from
the Commission to borrow an additional $403,419 from the Reconstruction
Finance Corporation to meet its fixed charges. Obligations to be met
include $103,419, representing interest on notes, and $300,000 to pay
principal of its equipment trust certificates, series 1924, maturing Nov. 1
1932. The road offers $434,000 of its general mortgage 6% gold bonds
as collateral security for the advances which, if graired, would make a
total of $4,239,222 of such loans to this carrier.
President Hoover Asks Halt in Rail Wage Talk Until
First of Year—Heads of Roads and Unions Are
Requested to Defer Pay Cut Discussion—President
Expects Economic Situation Will Be Much Clearer
by January—Labor Leaders Pleased.
President Hoover, according to a special dispatch from
Washington to the New York "Times" on Sept. 26, has
appealed to leading railway presidents of the country, as
well as to representatives of railway labor, to postpone the
discussion of further wage cuts until the end of the present
year. The attitude of the President, according to the dispatch, was communicated personally by him last week to
representatives of both the railways and rail labor organizations, with whom he discussed the matter at the White
House, but that fact was not revealed until late Sept. 26
when it was announced by Secretary of Labor Doak. The
'Times" further states:
Oct. 1
1932
Mr. Doak's announcement of the President's desire for a postponement
of a reopening of the railway wage cut question was made after he had conferred with the President at the White House to-day regarding the latest
aspects of the situation.
The President's position was pleasing to railroad labor, whose leaders
visited the White House last week to protest against any discussion at this
time. Inasmuch as Mr. Doak's statement said that the President had
made known his opinion to railroad Presidents It was believed here that
Mr. Hoover had virtually obtained their consent to the delay.
Holds Situation Will Be Clearer.
Secretary Doak's statement, which referred to the informal wage cut
conversations last week between the railroad management committee and
the railway labor executive's association, said:
"In the matter of the railway wage discussion now going on,the President
last week expressed the view, both to the representatives of railway labor
and to the leading railway Presidents who have conferred with him, that
he felt that it is desirable that this question should be deferred at the present
time.
"The present agreement does not expire until Feb. 1 next. The President's view was that it might be well agreed to defer further discussion
until the end of the year, as the general economic situation would be much
clearer at that time, and negotiations could be based on a better realization
of the actual circumstances existing."
In connection with the statement it was learned that Daniel Willard.
President of the Baltimore & Ohio, conferred with A. F. Whitney, head
of the railway labor executive's association, last Saturday and also visited
the President that day. Particular significance attaches to these meetings, inasmuch as Mr. Willard headed the railroad executives' committee
which negotiated the present voluntary 10% wage cut agreement in Chicago
last year. That agreement would expire Feo. 1, and the railroad managers
have been considering a 20% cut to supplant it, but the labor leaders last
week declined to enter into any negotiations with the executives concerning wage reductions.
Compliance With Plea Expected.
The labor leaders in fact told W. F. Thiehoff, head of the railroad management committee, that this was no time to bring up the subject. A day
later they assured the President in a formal communication that they
unanimously opposed discussing wage cuts, which they said would lower
living standards and break down the buying power of the workers.
The railroad management committee left Washington undecided as to
its next step. Informally some of the committee members said that they
had failed in an attempt to induce the railway labor men to begin discussion
of a voluntary 15% reduction, and that it might now be necessary to resort
to the railway labor Act to set in motion the machinery for a 20% drop
In wages.
Present indications are that nothing will be done about a new wage cut
at least until the year ends. The railway labor men are adamant and th
Administration apparently hopes for some upturn in business conditions
that may avert a slash in the railroad labor pay. By that time the condition of the carriers may have improved, officials believe, with the possibility that the contemplated 20% cut may be adjusted on some other basis.
Government officers to-night indicated that even if the railroads felt a
20% cut was necessary on Jan. 1, they would still have time under the railway labor Act to send out the requisite notices and put the cut into effect
before Feb. 1.
In opposing a wage cut at this time, the railway labor men told President
Hoover that many of the "expectations" held forth when the 10% cut went
into effect had not materialized. One of these expectations was increased
employment.
Roads Responsive to Hoover Pay Plan—But Want
Present Reduction of 10% to Remain in Force
Beyond Feb. 10—Hope Labor Will Accede—Averse
to Political Discussion.
Important railroads in the East and West are prepared
on certain conditions to comply with the appeal made
by President Hoover on Monday that they postpone discussion of a further wage reduction until Jan. 1. The conditions would involve a temporary extension of the present
10% reduction agreement beyond its present date of expiration, Feb. 1. The condition is put forward in order that
expiration of the agreement on Feb. 1 would not result in
automatically restoring the old rates. The New York
"Times" in discussing the matter, further states:
Following negotiations between a Presidents' committee headed by
Daniel Willard, President of the Baltimore & Ohio RR. and the Railway
Labor Executives' Association, then headed by D. B. Robertson, the railroads effected a 10% reduction in wages effective for one year from last
Feb. 1. It was in anticipation of the expiration of this agreement that the
managements recently prepared notices to be served on the unions calling
for a 20% reduction from the rates in effect before last Feb. 1.
•Should the present agreement not be extended and should no new wage
agreement be reached by Feb. 1, the levels in force before last Feb. 1 would
be restored. This would increase labor costs by 11% from the present
scales, a contingency which all managements wish to avoid.
Hope Labor Will Accede.
The managements are hopeful that labor would agree to the proposed
condition, arguing that continuance of the 10% reduction would be preferred
by labor as an alternative to a possible cut of larger amount reached through
immediate action by the managements.
The notices for a 20% cut were to have been served on Sept. 19, but they
were suspended to permit of an informal conference in Washington on
Sept. 20 between a management commitee headed by W. F. Thiehoff.
General Manager of the Chicago Burlington & Quincy RR., and the
Railway Labor Executives' Association, headed by A. F. Whitney. At this
conference, the labor executives, who represent twenty-one unions,rejected
the wage reduction proposal and soon afterward they placed their view
before President Hoover.
The reduction notices will remain in suspension at least until a nameeting of railroad Presidents here to discuss the labor situation next
Wednesday. As was previously announced, Mr. Thiehoff's committee
will report on its work at this meeting.
Oppose Discussion Now.
At this meeting the managements who are willing to forego posting the
notices in return for a temporary extension of the present wage agreement
will argue the advisability of keeping the proposal from discussion in the
present political campaign. These managements see no benefit to themr
Volume 135
Financial Chronicle
selves from a competition between the Presidential candidates to attract
the support of labor by committing themselves on the railway wage issue.
Such an injection of politics into their proposal, they argue, would be
avoided by acceding to President Hoover's request for postponement of the
negotiations until Jan. 1.
One element in the management group has all along contended that
serving of the wage-reduction notices should be postponed at least until
Election Day. It is pointed out that postponement until Jan. 1 would
be an expansion of this policy. In his appeal Mr. Hoover said that economic
conconditions might be clearer by Jan. 1. This possibility has been
sidered by some managements.
this
at
notices
serve
reduction
to
move
'
The reason for the managements
time was to make it certain that a new agreement could be negotiated
before Feb. 1. They had planned the new reduction under the Railway
Labor Act, through collective negotiation and arbitration, which procedure
would require some months. Reaching of a new agreement by Feb. 1
through notices served on Jan. 1 would be impossible under the provisions
of the Railway Labor Act.
The managements desire negotiation only between their committee and
the Libor Railway Executives' Association, instead of numerous parleys
on individual contracts between the railroads and their unions. Although
the association rejected this idea at Washington, some of the managements
are still hopeful that the labor forces may reconsider.
The announcement of the appointment of the committee
was made on Sept. 27 by Walter H. Bennett, President of
the Emigrant Industrial Savings Bank of New York City.
In the letter of invitation to those who are to form the committee it is stated that "the present financial position of the
railroads of the United States is a matter of grave concern.
Collectively, the greatest and most important industry of
our country, the railroads have operated in this year at
staggering deficits." The letter also says "there are many
disagreements as to causes, many disagreements as to remedies, but unanimous agreement as to the urgent necessity of
some thorough-going solution of the problem." According
to an announcement made yesterday (Sept 30) by Mr.
Bennett the five named to the Committee "have acepted
and agreed very generously to serve without compensation."
The announcement added that "an organization meeting
will problably take place some day next week." The letter
of invitation, made public by Mr. Bennett, follows:
Politics Feared in Rail Wages.
The "Wall Street Journal" Sept. 22, had the following:
Refusal of the Railway Labor Executives' Association to discuss the
wage question in advance of the expiration of the present agreement,
providing for a 10% wage cut to Feb. 1 next year. places settlement of
the railroad wage controversy indefinitely in the future.
The heads of some of the carriers are undmstood to have been informed
that should they make strenuous efforts to effect the wage cut now, the
matter would probably be dragged into the political arena. The carriers
are anxious to prevent this.
The committee of railway managers, headed by W. F. Thiehoff, General
Manager of the Chicago Burlington & Quincy RR., will report back to
a meeting of the railroad presidents of the country at a meeting called for
Oct. 6 In New York.
At this meeting those executives fearing political interference will endeavor to persuade the other presidents to defer action until after election.
It is known that the leaders of the brotherhoods are playing for time.
They are said to hope that business will pick up sufficiently for a wage
cut to be made unecessary next February.
On the other hand the carriers feel that they need all of the 20%
cut from the basic wage scale in order to get their houses in order. They
contend that wages in steel, coal and other industries have already been
reduced more than 20%. They also hold that the cost of living has declined to the 1917 level while rail wages are substantially higher than they
were at that time.
The carriers will not cease their efforts toward a wage cut. If negotiations are suspended until after the election, the carriers will still have
almost three months in which to deal with labor on a wage agreement
to replace the one which expires Feb. 1 next.
Rail Labor Backs Hoover Proposal—But Men Want
Talk of Wage Cut Put Off Indefinitely.
A.F. Whitney,President of the Railroad Labor Employees
Association, in a statement, Sept. 27, on President Hoover's
proposal that discussion of the reduction of rail wages be
postponed until after Jan. 1, said that "a cut in wages at
this time would further retard business recovery." The
New York "Sun," Sept. 27, further says:
Mr. Whitney. who also Is President of the Brotherhood of Railroad
Trainmen, and who recently headed a delegation which conferred with
the President on the proposal of the railroads to make an additional 10%
wage reduction, said that "while we are pleased with the President's
statement, it did not go as far as it should.
"Talk of reducing Wages of railroad employees should be indefinitely
postponed," Mr. Whitney said. "Any reduction in the pay of the rail
workers at this time nleallS that the business recovery of the Nation would
be just that much further retarded."
Accept Appointto Examine into
Railroad Problems—Other Members
Country's
B. M. Baruch, Clark Howell Sr. and Alexander
Legge.
It became definitely known this week that former President Calvin Coolidge and Alfred E. Smith, former Governor
of New York are to be members of a committee which will
be charged with the duty of examining into all phases of the
railroad problem and recommending "a solution which,
with due regard for the public interest, will insure an opportunity for the railroads of the country to operate on a business basis, to the end that there may be a stabilization in
employment of wage earners and in the values of investments made in behalf of insurance policyholders and savings
bank depositors, and a general enhancement of the prosperity of the railroads and of the many lines of business
which, in turn, depend upon them."
Previous intimations that Messrs. Coolidge and Smith
were being considered to serve in this capacity were given in
an item in our issue of Sept. 17, page 1939. The committee
is to consist of five members, the other three being:
Calvin Coolidge and Alfred E. Smith
ment as Members of Committee
&
Bernard 1st. Baruch, director of the Baltimore Ohio RR.. Vice-Chairman.
n" and a director
"Constitutio
the Atlanta
p Clark Howell Sr.. publisher of
Press.
of the Associated
Harvester Co.and former
Alexander Legge, President of the International
Chairman of the Federal Farm Board.
2277
Hon. Calvin Coolidge,
Hon. Alfred E. Smith,
Mr. Bernard M. Baruch,
Mr. Clark Howell,
Mr. Alexander Legge.
Gentlemen:
The present financial position of the railroads of the United States is a
matter of grave concern. Collectively the greatest and most important
industry of our country, the railroads have operated in this year at staggering deficits. Only wise and timely Federal aid has averted the financial
breakdown of important systems.
This situation touches every citizen. It affects directly the security
of wage and employment of the 1.500.000 railway workers. It affects
equally the many and important Industries supplying railway equipment
and supplies. It touches the financial problem of local. State and National
government, to the support of which the railroads contribute over $300.000.000 annually in taxes. It has given rise to a severe decline in the value of
the $19.500,000,000 of railroad obligations and shares, and has occatheir
sioned concern to institutions which hold such obligations among
assets, representing in part the savings of that thrifty portion of our popucompanies
insurance
of
lation which is to be found among the policyholders
emergency
and the depositors in savings banks. The relief that the present
Federal
has made it necessary to grant to the railroads is a drain on the
taxpayer.
Treasury, and any ultimate loss will constitute a burden on every
to
wholly
due
not
is
The present deplorable position of the railroads
depression.
the stagnation of traffic resulting from the long-continued
labor, and
Many of the present ills are due to governmental, financial,
management policies, some wrong in conception, some wrong in application,
and others rendered obsolete by radically changed conditions.
to
There are many disagreements as to causes, many disagreements as
of some
remedies, but unanimous agreement as to the urgent necessity
will be
thorough-going solution of the problem. No solution, however,
effective unless the problem of the railroads is considered as an integral
whether
States,
part of the entire transportation problem of the United
by rail, highway, waterway, pipeline or air.
Every industry in the country is entitled to fair treatment—the railroads no leas than the others, The public interest must certainly be prodistected, but regulation should not place the railroads at a hopeless
and
advantage with competing agencies and destroy flexibility of operation
management initiative. The railroad workers are entitled to a fair wage
and the greatest possible security of employment. The holders of railroad
their
securities are entitled to a fair and stable return on the true value of
Investment.
of
But more Important than the interests of any one group, the people
form
the United States are entitled to the most effective and economical
or
water
of transportation to meet their various needs, whether by land,
effecair. Each form of transportation should be unhampered to provide
it is best
which
for
service
the
tively at a reasonable cost and at a fair profit
expense
fitted. No form of transportation should be favored either at the
the United
of another agency or at the ultimate expense of the people of
States.
interests
lir We. the undersigned organizations, representing many of the
than a
concerned. believe that there is no more important present task
an integral
thorough and satisfactory solution of the railroad problem, as
beg
We
but the most urgent part of the entire transportation problem.
solution
that you examine all phases of the problem and recommend a
which, with due regard for the public interest, will insure an opportunity
to the end
for the railroads of this country to operate on a business basis,
and in
that there may be a stabilization in employment of wage earners
and
policyholders
the values of investments made in behalf of insurance
of
prosperity
the
of
savings bank depositors, and a general enhancement
upon
the railroads and of the many lines of business which, in turn, depend
them.
The organizations whose names were signed to the letter were:
Co.
The National Association of Mutual Hartford Accident & Indemnity
National Fire Insurance Co. of Hartford.
Savings Banks.
Aetna Insurance Co.
Metropolitan Life Insurance Co.
Co.
Equitable Life Assurance Society of the Continental InsuranceInsurance
Co.
Fidelity-Phenix Fire
United States.
American Eagle Fire Insurance Co.
New York Life Insurance Co.
Co.
Insurance
Maryland
Y.
N.
of
Co.
Insurance
Life
Mutual
The
Niagara Fire Insurance Co.
Home Life Insurance Co.
Insurance Co.
Prudential Insurance Co. of America. First American&Fire
Casualty Co. of N. Y.
Fidelity
The
Co.
Insurance
Life
The Mutual Benefit
Connecticut Mutual Life Insurance Co. Harvard University.
The Phoenix Mutual Life Insurance Co. Yale University.
Connecticut General Life Insurance Co. Columbia UnIveraltY.
University of Chicago.
Aetna Life Insurance Co.
Association.
John Hancock Mutual Life Insurance Co Railway BusinessBankers
Association Of
The Investment
Phoenix Insurance Co.
America.
Hartford Fire Insurance Co.
In making public the above, Mr. Bennett issued a statement saying:
up this
The acceptance by the distinguished group of citizens making
have
committee constitutes. In the judgment of the organizations which
has
that
important
development
extended the invitation, perhaps the most
transdo
with
to
having
questions
to
relative
years
taken place for some
of thousands of
portation. It should be understood that the hundreds
the savings of millions
private investors, the savings banks which represent
who join in this
others
and
of people, the great life insurance companies
special pleaders in the sense
appeal for a fresh survey of the situation, are not
investments. On the contrary. they
of asking favors in behalf of railway
2278
Financial Chronicle
realize that the present grave situation of the railways is due at least in
part to certain defects which railway management itself should have undertaken to correct.
For this reason the committee is asked to make its survey as complete
as possible, and to extend its inquiry with the utmost thoroughness into
cause and effect throughout the whole field of transportation of which the
railroads are only a part—even though the most important single part.
Any examination of the country's transportation system must necessari
ly
be conducted with an eye to the interests of the country as a whole, such
interests being obviously those of the shipper, of labor and of capital.
The hope is that a careful survey of the transportation industry may
serve to point out remedies which, if adopted. will assist in the improvement
of general business conditions throughout the country as a whole. The
railroads are not only the largest employers of labor in the country,
but in
addition they constitute the largest single class of purchasers from other
industries, so that, directly and indirectly, any substantial improvement
in the status of the railroad carriers should have a stimulating effect of
great importance throughout industry as a whole.
The acceptance of the task of survey by the members of the committe
e
Is manifestly an act of great public spirit, in line with the services already
rendered to their country by these eminent citizens. The very fact that
they are willing to undertake the serious work and responsibility involved
Is a guarantee that the survey will be carried through with intelligen
ce and
completeness. And it must be obvious that any conclusions reached
by a body enjoying such high repute for fairness and probity will command
the instant attention of both the public and the legislative authorities.
The New York "Times" in its issue of Sept. 28 said:
Banks Originated the Plan.
Mr. Bennett said the idea of invoking a committee of prominent
men
to focus public attention on the legislative and other needs of the railroads
arose among savings banks. He pointed out that the National Associati
on
of Mutual Savings Banks had recently appointed a committee, of
which
he was a member, to investigate the railroad situation.
After having originated in this quarter. Mr. Bennett continued,
the idea
spread to other institutions that hold large amounts of railroad
securities,
namely, insurance companies and universities. Among the organizat
ions
that are now active in the movement is the Investment Bankers
Association
of America. Henry S. Sturgis. Vice-President of the First National
Bank
of New York and a director of the Investment Bankers Associati
on, became
active in the movement soon after it started.
From banking sources it was learned that competitors of
the railroads
had been sounded out on the appointment of the committee and
that these
had indicated their approval of its formation. These interests were
understood to include pipe lines and highway transportation systems, which
have
provided competition which the railroads have contended has been unfair.
The Inter-State Commerce Commission is also understood to have been
Informed of the formation of the committee. . . .
It is expected that formal acceptances by the members of the committee
will be received within a few days. However, Mr. Bennett said that the
appointees had already signified their acceptance. He said that they
would
serve without pay. The committee is representative of all sections
of
the country.
Rail Committee Wins Approval of Executives—Daniel
Willard Says He Will Work With Coolidge Group
If Needed—Praises Move.
In the New York "Herald Tribune" of Sept. 29, it was
stated that the railroad managements represented in this
city received the news of the formulation of the Coolidge
non-partisan railroad commission with approval for the most
part, although a reluctance to give their opinions at this time
was expres.ed by some of the leading executives. The paper
from which we quote also said:
In general the news of the committee's organization came
as a distinct
surprise to the managements, although there were a few
who were in the
confidence of the group's sponsors.
"The committee has a fine personnel and I will gladly co-operat
e with it,
should there be any need of such assistance," stated Daniel
Willard, President of the Baltimore & Ohio Railroad Co., yesterday when
asked if the
railroad officials would collaborate with the committee. It
is understood
that Mr. Coolidge and his associates will seek data from
the managements
as well as from other branches of the transportation industry.
The group
is independent, however, of the industry and is acting
specifically in the
interests of its investors.
Sees Truth of Situation.
"With men of such high caliber serving the truth
about conditions affecting the railroads will be ascertained and presented
to the public." added
Mr. Willard. "We are not afraid of the truth. In
fact, we want it known.
Only by obtaining such knowledge will the public be
sufficiently moved to
secure the necessary remedies. Any conclusions which
Mr. Coolidge and
his committee members arrive at should be helpful in
giving the public a
better understanding of railroad problems," Mr. Willard
said.
At the offices of Frederick E. Williamson. President
of the New York
Central Railroad Co.. it was stated that no expression of
Mr. Williamson's
reaction to news of the committee's organization could
be obtained. An
explanation of the executive's reluctance to comment
was that he had but
recently returned to the command of the system from which
illness had kept
him for many months and that he had not yet had time
to study the details
of the announcement of the committee's organization.
Atterbury Reported Pleased,
Although W. W.Atterbury. President of the Pennsylvania Railroad
Co.,
was not in the city yesterday, it was stated by Informed observers
that he
was heartily in favor of the proposed study to be undertak
en by the committee. Other railroad executives who either expressed themselv
es or are
understood to be in favor of the plan are Carl Gray, President
of Union
Pacific; Ralph Budd. President of Chicago Burlington &
Quincy; L. A.
Downs, President of Illinois Central; Hale Holden, Chairman of Southern
Pacific Co., and John J. Pelley, President of New York
New Haven &
Hartford. John M. Davis, President of the Delaware Lackawa
nna &
Western RR.. had no comment to make.
Formation of the commission was of interest to L. F. Loree, President
of the Delaware & Hudson Railroad Corp., inasmuch as
he has recently
concluded service on the Royal Commission which reported on the Canadian railroad situation. Mr. Loree believes that the purposes of the
two
commissions are somewhat akin, although the Dominion inquiry was
sponsored by the Government, while the Coolidge Investigation has
no official
connection with either Congress or the Administration, despite
the fact
that a former President and New York Governor are on the committe
e.
Oct. I 1932
Chicago Association of Commerce Pledges Co-operation
in Inquiry into Railroad • Problems by Coolidge
Committee.
In a message sent to Calvin Coolidge, following a meeting
of the executive committee of the Chicago Association of
Commerce, George W. Rossetter, President, said, according
to Chicago advises to the "Wall Street Journal" of Sept.
24:
It
Is with satisfaction and gratification that we learn
that
agreed to accept the leadership of a national group of disintere you have
sted, public
spirited citizens to inquire Into and report upon the present
critical situation
confronting our railroad systems, with a view to recommen
ding adequate
procedure toward improvement.
The Chicago Association of Commerce takes this opportun
ity to tender
Its hearty co-operation to your group for the purpose
of assisting in developing all essential facts and advancing this important
undertaking.
The dispatch to the paper quoted continued:
Referring further to the announcement of Mr. Coolldge'
s plans to survey
railroad conditions, Mr. Rossetter said:
Every citizen and wage earner,
no matter what his position in society, must encourag
be
ed by Mr. Coolidge's
undertaking. The entire safety of our banking
and insurance structures
depends in great measure upon protection
of railroad bond Investments.
While there can be no discounting the value
of the temporary aid available
to the railroads right now in the facilities of the
Reconstruction Finance
Corp.,there must be more permanent provision
s to rehabilitate our national
carrier system. It is certain that the findings
of Mr. Coolidge and his coworkers will achieve these corrective measures
.
At the last session of Congress the Chicago
Association of Commerce
was successful in gaining consideration by the
Senate and the House of
Representatives of legislation designed to effect the
repeal of the recapture
clause in the Transportation Act. Unfortunately,
however, the bill was
sidetracked during the deliberations on the Federal
budget and emergency
relief.
We are hopeful now that, after Mr. Coolidge
looks into the situation,
the recapture clause, with all of its devastating effects,
will be wiped out;
that the railroad managements will have restored
to them those logical
prerogatives now restricted by law; and that the continued
waste of millions
of dollars in taxpayers', investors' and customers' money
involved for years
In the still unfinished revaluation investigations of the
Inter-State Commerce Commission will be very definitely ended.
Resolution of Savings Bank Association of New
York
Urging Formation of Committee Representing
Mutual Savings Banks to Study of Problem of
Railroad Credit.
At its annual meeting in Rye, N. Y. (Sept.
22-23), the
Savings Banks Association of the State of New York
adopted
the following resolution calling for the organization of
a committee of the mutual savings banks "to study the
problem
of railroad credit for the purpose of determining
the
which shall be taken to preserve the railroads and steps
protect
the interest of their bondholders."
Whereas. The =tinned low status of railroad earnings
railroad credit to the point where immediate positive efforts has impaired
must be made
to solve the problems of consolidations, competitive
agencies of transportation, railroad capital structures and other matters
affecting railroad
credit if the integrity of bond investments is to be
preserved pending an
upturn in traffic; and
Whereas. Though the the Savings B.nks Association
of the State of
New York recognizes and strongly supports the
exhaustive studies and
active measures undertaken by the Security Owners
Association for the
protection of railroad investors generally, it believes
that the railroad
situation should also be studied independently with
regard to the savings
bank bondholder interest; and
Whereas. There has been organized a conunittee of the
mutual savings
banks to study the problem of railroad credit for the
purpose of determining
the steps which shall be taken to preserve the railroads
and protect the
interest of their bondholders:
Now Therefore Be It Resolved. That the Savings Banks
Association of the
State of New York accord its full support and co-operat
ion to the aforementioned committee of the mutual savings banks that this
determine what action, legislative or otherwise, should committee may
be taken by the
savings banks to keep available railroad securities as a
conservative field
for savings bank bond investment.
Big Four Railroad to Rehire 1,750 Former
Employees.
It was announced on Sept. 28 at Indianapolis,
Lid., that
the Big Four Railroad will return 1,750 former
to work at the Beech Grove shops on Oct. 3. employees
Canadian Railroads Take on More Workers.
The Montreal "Gazette" of Sept. 24,
contained the
following advices from Winnipeg, Sept. 23:
More than 3,000 railway workers in all branches
have been restored
to service in western Canada by Canadian National
and Canadian Pacific
Railway, since the beginning of the crop movemen
t, according to figures
compiled at Winnipeg, Sept. 23.
Employment will continue until the week's grain
crop is safely housed
In terminal elevators. Manitoba leads the way in
retotal of 1,933 for both roads. Saskatchewan is a closeemployment with a
second with a total
of 905. The figures for Alberta, are 322, and for British
Columbia, 239.
Minnesota Suspends Order on Application
of New
Increased Freight Rates—Schedule
Prescribed by
Inter-State Commerce Commission
Declared
Have Resulted in Harm to Business Interes to
ts of
State.
The following, from St. Paul, Minn., Sept. 22,
is from the
"United States Daily" of Sept. 23:
The application of the freight rates prescribe
d by the Inter-State Corn.
meree Commission in the Western Trunk
Line Class Rate Class
(Docket
Volume 135
Financial Chronicle
17,000, Part 2) "has already caused serious injury to the business interests"
of Minnesota, according to an order issued Sept. 21 by the State Railroad
of a
and Warehouse Commission, indefinitely extending the effective date
carriers
previous order of the State Commission upon an application of the
for increases in class rates.
Business Affected.
A continuance of the so-called overhead rates fixed by the Federal ComMinnesota order, "will in the opinion of this
the
in
stated
was
mission, it
Commission, result in practical extinction of the jobbing and manufacterrituring business of this State, the removal of such business to Eastern
in
tory and a consequent serious loss in revenue to the carriers operating
this and surrounding States."
The State Commission said it had received a request from the Minnesota
railroads for a further extension of the effective date of the Commission's
order dated March 28 1932, in the matter of the carriers' application for
increases in class rates.
Losses of Revenue.
"Since the issuance of the last order," the Commission continued, "the
carriers in this entire territory have filed with the Inter-State Commerce
Commission an appeal for a reopening of Docket 17,000, Part 2, for the
stated purpose of correcting numerous rate maladjustments brought about
by the former order of the Inter-State Commerce Commission, which, it is
stated, have caused serious losses in revenue to practically all the carriers
operating in Western Trunk Line territory."
(A summary of the application of the carriers was printed in the issue of
Sept. 21.)
"The Minnesota Commission is advised that the proposed class rates have
not been made effective in the adjoining States of North Dakota and Wisconsin, and it is well known that the rates prescribed for use within the
State of Iowa are lower than the scale of rates authorized by this Commission. Therefore, if this application were denied, we would have rates in
this State materially higher than those in surrounding territory.
"The Traffic Associations of Minneapolis, St. Paul and Winona have
urged this Commission to grant a further extension in order that the rate
situation shall not become more confused than it is at present.
"The application of the rates prescribed by the Inter-State Commerce
Commission has already caused serious injury to the business interests of
this State, this being particularly true with reference to the so-called overhead rates, a continuance of which will, in the opinion of this Commission, result in practical extinction of the jobbing and manufacturing business of this State, the removal of such business to Eastern territory and a
consequent senoua loss in revenue to the carriers operating in this and
surrounding States.
"The granting of the request cannot impose any hardship upon the
shipping public as the existing rates are somewhat lower than the scale
proposed for Minnesota.
"It is therefore ordered that the effective date of the order of the
Commission bearing date of March 28 1932 be, and the same is hereby,
postponed to a date which will he designated by this Commission when
final conclusions have been reached."
To present users has been given the option of using ten-letter code words
at full rate or five-letter words at a one-third reduction in cost outside
of Europe. The Dutch East Indies delegation is proposing to reduce
still further the rate for the five-letter word. It is probable that trade
names and other combinations hitherto barred in five-letter codes will
be permitted. Nevertheless, the general impression exists that the cost,
while it will not be doubled by cutting the number of letters in half, will
be greatly increased.
The British delegation and a majority of the Empire representatives
voted against the proposal, while the delegation of the United States, a
non-signatory, lent its moral support to the British in the discussion. Germany and Italy led the fight for the alteration, which cable and telegraph
companies have been pushing for three decades. Formal approval of
the decision of the tariff commission is a foregone conclusion.
Results of Bank Management Conferences Brought
Together in 800-Page Book by American Bankers'
Association.
The results of the eight Bank Management Conferences
conducted in recent years by the American Bankers Association have been assembled into an 800-page book, substantially bound in buckram, and fully indexed. This book
constitutes a complete, up-to-date manual of modern
practice upon such important matters as loans and investments, cost analysis, secondary reserves, interest payments,
service charges, clearinghouse co-operation, director responsibility, personnel problems, &c. It can be secured at
cost of printing and binding from the Bank Management
Commission of the American Bankers Association, New
York City.
Canadian Railroad Commission Urges Elimination of
"Wasteful Competition"—Other Features of the
Report.
Elimination of "wasteful competition" of principal railway
systems in Canada is urged in a report by the Royal Commission on Transportation, formed Nov. 20 1931, to investigate the problem of transportation in Canada, according
to a report to the Commerce Department from Commercial
Attache Lynn W. Meekins, Ottawa, Canada. Other
features of the summary of the report, says the Department
of Commerce under date of Sept. 24, included:
Establishment of an arbitral tribunal to insure co-operation; maintenance
of the identity of the Canadian National and the Canadian Pacific railroads; administration of a national system by three trustees instead of the
present 17 directors; Canadian National deficits to be financed by Government appropriations, instead of issuing railway securities; more economical
operation of the Canadian National ;and protection of the Canadian Pacific
from unfair competition.
Premier Bennett stated that the full report will be tabled in Parliament.
Oct. 8. and enacting legislation will be introduced.
No reference was made in the summary to any proposed reduction in the
capitalization of the national system, nor to motor bus and truck competition, the report stated, but unofficial reports indicate that the latter
question may be subject to provincial action.
Discussion has been conducted in the Canadian press for some time past
over merits of various schemes designed to bolster the fortunes of the two
great Canadian railway systems, the Canadian National and the Canadian
Pacific.
Hearings of the Commission have been held in secret, and the complete
report will be given to Parliament.
Members of the Commission were Lyman Poore Duff; Lord Ashfleld,
London; Sir Joseph W. Flavelle, Toronto; Beaudry Leman. Montreal;
L. F. Loree, New York; Walter Charles Murray, Saskatoon; and John
Clarence_Webster, Shediac, New Brunswick.
Sub-Committee of International Radio-Telegraph Conference Votes to Abolish Ten-Letter Code Words—
Proposed Five-Letter Code.
From the New York "Herald Tribune" we take the following (United Press) from Madrid Sept. 26:
A sub-committee of the International Radiotelegraph Conference voted
28 to 10 to-day in favor of a Soviet proposal to abolish the so-called Class A
permits which allow ten-letter code words. Hereafter only Class 13 would
be allowed, consisting of five-letter words, to be transmitted at half the
price of the ten-letter words.
We also quote the following Madrid cablegram (Sept. 26)
to the New York "Times":
In a decision that will affect business houses and commercial enterprises
throughout the world, the tariff commission of the International Telegraphic Conference voted by 28 to 10 to-day to abolish ten-letter In favor
of five-letter code words.
Major William F. Friedman, United States Army code expert, said tonight. however:
The
"This change should not be considered for serious application yet.
of use have not yet been decost of the five-letter word and its method
changed."
radically
be
not
cided upon and the cost to users may
2279
American Bankers' Association Body Presents in Book
Form Study of Railroad Problem.
The Commerce and Maiine Commission of the American
Bankers' Association, which has made a study of the railroad
problem, particularly phases of public interest which centre
around land grants, capital and labor, competition between
steam and electricity, public relations, present-day competition with buses and trucks, and the importance of the
rate structure in rehabilitating the railroads' financial
fabric, has issued its findings in book form under the title
"Railroad Transportation in the United States." This book
Is ready for distribution and will be supplied at $2.50 a copy.
G.T.Stephenson of Equitable Trust Co. of Wilmington
Del., Says Banks and Trust Companies are Helping
Industry Meet Its Social Obligations Through
Operations of Trusts.
Banks and trust companies are helping American industries
meet their social obligations to their employees through the
operation of six types of trusts, Gilbert T. Stephenson, VicePresident of the Equitable Trust Co., Wilmington, Del., says
in an article in the October issue of the American Bankers,
Association Journal.
Mr. Stephenson classifies these trusts, which, he says,
are all now in operation in one or more American trust
institutions for one or more American industries, as those
for the stabilization of employment, for the relief of the
temporarily incapacitated, for the reward of special merit,
for pensions for the retired, for the promotion of thrift and
trusts to induce profit-sharing. Mr. Stephenson says:
Three of these six types of industrial trusts are remedial in nature and
three creative. Through trusts for the stabilization of employment, for
the relief of the incapadtated and for the permanently retired, industry is
attempting, commendably to take care of its employees—to prevent unemployment, to relieve the sick or temporarily incapacitated and to provide
for the permanently retired and superannuated.
Through trusts to reward special merit, to encourage thrift, and to induce
profit-sharing, industry is attempting, equally commendably, to help its
employees to take care of themselves—to be self-supporting even during
periods of unemployment, to provide for their own sickness or incapacity.
and to have an ample amount laid by for the time of retirement and old
age. As between the two,industry and its employees alike prefer the creative
to the remedial trusts.
While there are any number of thrift plans designed to encourage and
enable employees to save and accumulate and lay by a sufficiency for
unemployment or illness or old age, comparatively few of the plans call for
the services of a trustee. Yet, as in the case of the industrial trusts already
described, there is a noticeable tendency now to introduce the element of
trusteeship.
Annual Convention of American Bankers' Association
at Los Angeles Next Week—Oct. 3-6—Secretary
of Treasury Mills to Address Convention.
At Los Angeles next week—Oct. 3-6—the American
Bankers' Association will hold its 58th Annual Convention.
We have already given in detail (in our issue of Sept. 10,
page 1771) the program to be presented at the sessions of
the General Convention, as well as the features of the
sessions of the various Divisions and Sections. It was later
made known (as we indicated Sept. 17, page 1940) that
Secretary of the Treasury Ogden L. Mills would also be a
2280
Financial Chronicle
speaker. He will address the General Convention on Tuesday, Oct. 4, his subject being "The Financial Panic and
Program of Reconstruction." The New York "Journal of
Commerce" on Sept. 26 stated:
While questions of governmental finance and taxation will be given
most attention on the official program of the convention of the American
Bankers' Association, to be opened Oct. 3 at Los Angeles, the issue of
branch or unit banking will again be raised. In local banking quarters
it is considered probable that the American Bankers' Association may
go on record in favor of more liberal branch privileges.
Besides the speakers we have already noted Dr. Paul F.
Cadman, Associate Professor of Economics of the University
of California,is likewise scheduled to address the Convention.
His address will be delivered before the Trust Division
Monday, Oct. 3.
Robert E. Christie Jr. Re-Elected Chairman of New
York Group of Investment Bankers Association.
Robert E. Christie Jr. of Dillon, Read & Co. was reelected Chairman of the New York Group of Investment
Bankers Association of America at the annual meeting held
at the Bankers Club on Sept. 20. Other officers and members of the executive committee for the ensuing year were
elected as follows:
Vice-Chairrnan—Pierpont V. Davis. National City Co.
Secretary-Treasurer—Frank L. Scheffey, Calloway. Fish & Co.
Members of the executive committee—Harry M.Addinsell. Chase Harris
Forbes Corp.: R. C. Hogan, Bankers Trust Co.: Sidney A. Mitchell, Bonbright & Co.. Inc.: George S. Stevenson. Stevenson. Gregory & Co.: Lewis
L.Strauss, Kuhn.Loeb & Co.. and Francis T. Ward,J.P. Morgan & Co.
Oct. 1
1932
The Bryant Park Bank, 220 West Forty-second Street, which was
closed by Mr. Broderick for liquidation on Aug. 25 1931, and which paid
depositors 100 cents on the dollar last May after its liabilities had been
assumed by the Manufacturers Trust Company, has paid its stockholders
$11 a share on 25,000 shares of $20 par value, according to Joseph Rubin
of counsel for the liquidating committee.
Mr. Rubin said the Bryant Park Bank had dollar for dollar for the
depositors and capital and surplus of $1,000,000 on its books when it was
closed. He declared it was solvent and went into' liquidation by request
of the State Banking Department.
The New York State Banking Department on Sept. 20
gave its approval to the agreement for the merger of the
Liberty National Safe Deposit Company, 50 Broadway, into
the Harriman Safe Deposit Company, 527 Fifth Avenue,
both in New York, under the title of the latter. At the
same time the Banking Department also approved the sworn
copies of proceedings of meetings of the respective Boards
of Directors submitted with the merger agreement. The
Liberty National Bank was placed in voluntary liquidation
on May 18, having been absorbed by the Harriman National
Bank & Trust Company, as was noted in our issue of June
4, page 4099.
Approval was given to the Harriman Safe Deposit Company, 527 Fifth Avenue, New York, by the New York State
Banking Department on Sept. 20, to increase its capital
stock from $100,000 to $150,000 and to increase the number
of its shares of stock from 1,000 to 1,500 shares with a par
value of $100 per share.
ITEMS ABOUT BANKS, TRUST COMPANIES,&c.
Frank E. Storms, former President of the Citizens' NaMichael George Herbert, partner of Morgan, Grenfell & tional Bank of Hornell, N. Y., which was closed several
Company, London banking house associated with J. P. months ago, was sentenced on Sept. 28 to four years in
Morgan & Company of New York, died on Sept. 26 in
Atlanta Penitentiary for embezzlement of the bank's funds,
London. Mr. Herbert, who was 39 years old, joined the according to Associated Press advices from Canandaigua,
N. Y. on the date named. The defalcations were estimated
staff of Morgan, Grenfell & Company in 1924 and was made
a partner Jan. 11927. He was said to have been the youngest at $100,000, it was stated.
partner. He was the son of the late Sir Michael Herbert,
Concerning the affairs of the Charlestown Trust Co. of
British Ambassador to the United States from 1902 to 1903,
and. brother of Captain Sidney Herbert, who served as a Boston, Mass., which has been closed since last December,
member of Parliament from 1922 to 1931, being re-elected an immediate dividend of at least 50% to savings depositors
last July as a Conservative. Captain Herbert also was and of 25% to commercial depositors, to be available Oct. 17
private Secretary to Stanley Baldwin when the latter was. next, was assured on Sept. 23 when the Supreme Court of
Massachusetts approved a petition of Bank Commissioner
Prime Minister.
Arthur Guy confirming arrangements made by him with
The following from Albany, Sept. 30, is from the New officials of the National Shawinut Bank of Boston. The
York "Evening Post" of last night:
Boston "Herald" of Sept. 24, from which the above informaThe State Banking Department announced to-day that it had taken over,
tion is obtained, went on to say in part:
at the request of the directors, the Continental Savings and Loan Association of 40 West Fortieth Street. New York City.
"This association," the announcement said, "has for some time been in
process of virtual liquidation, but has not taken the orderly proceedings
for a voluntary liquidation under the banking laws. Its directors have
deemed it expedient to discontinue business, and, at their request, the
department, under the provisions of the banking law, will undertake the
liquidation."
An application, dated Sept. 21, was filed by the Bank of
Manhattan Trust Company, 40 Wall Street, New York, with
the New York State Banking Department on Sept. 22 for
permission to open a branch office at 3022 Church Avenue,
Brooklyn.
The World Exchange Bank, 174 Second Ave., New York,
which was taken over for liquidation on March 20 1931 by
New York State Superintendent of Banks Joseph A. Broderick (as noted in our issue of March 21 1931, page 2125),
has declared a capital stock dividend of $3 a share on its
5,000 outstanding shares of $100 par value. Alexander
Kahan, 233 Broadway, acting as Secretary and counsel to
the committee of stockholders said on Sept. 26 that this
will represent a disbursement of $15,000.
The World Exchange Bank, which had gross deposits of
$1,091,267 at the time of its closing, paid back 100 cents on
a dollar to its depositors in July 1931. Under the direction
of August Ihlfeld, Jr., and Robert Barnet, Jr., of the liquidating Department of the State Banking Superintendent's
Office, the liquidation of the bank's assets was continued
until last May. From the New York "Times" of Sept. 27
we quote the following:
In announcing the payment of the capital stock dividend on Oct. 1 to
stockholders of record when the bank was closed March 20 1931, Mr.
Kahan explained that liquidation of the remaining assets was continuing
and that it was hoped to make additional payments to stockholders.
"The World Exchange and Bryant Park Banks are the only cases on
record in the State Banking Department where a closed bank has paid
100 cents on the dollar to depositors and paid a dividend to stockholders,"
said Mr. Kahan.
Joseph H. Cohen, chairman of the stockholders' committee, said that in
view of the record made by the bank it was likely that the State Banking
Superintendent would be asked next Spring for permission to reopen the
World Exchange Bank.
The National Shawmut Bank, under a plan for liquidating closed banks,
has purchased certain assets of the Charlestown institution. The dividends
to be paid by Commissioner Guy will aggregate approximately *1,000,000
to savings depositors and about $125,000 to commercial depositor'.
The
plan has been worked out by Commissioner Guy, Richard S. Teeling,
former
l'resident of the Charlestown Trust Co., and officials of the National
Shawmut Bank.
The assets purchased by the National Shawmut Bank consist of cash,
stocks, bonds, mortgages and other securities, all at present market value.
These comprise the "A" group of assets of the Charlestown Bank. The
National Shawmut Bank also takes a first lien on all other assets of
the bank.
In the quarters formerly occupied by the Charlestown Bank, the National
Shawmut Bank will establish a branch office to give service to the depositors
of the closed institution and to its own depositors in the vicinity.
Under the new plan, those depositors of the Charlestown Trust Co.
whose
claims have been filed and proved with the State Bank Commissioner,
and
for which certificates have been issued, will present the certificates
at the
new Shawmut Charlestown branch on or after Oct. 17. A
representative
of the Bank Commissioner will indorse the certificates for the proper
amount
and issue a draft on the Bank Commissioner's account in the
National
Shawmut Bank.
These drafts will be non-negotiable and will be credited to accounts
in
the names of the depositors on the books of the National Shawmut
These will be regular commercial or savings accounts, subject to Bank.
and withdrawals undet the rules of the National Shawmut Bank. deposits
It is hoped by those responsible for the co-operative plan that the
ing assets of the Charlestown Trust Co. may be speedily converted remainInto cash
by Leo M. Harlow, liquidating agent for the Bank Commissioner,
in order
that additional dividends may be paid depositors.
The Shawmut Bank is one of New England's largest institutions
and has
resources of more than $180,000,000. It has 12 other branches
throughout
the city, with its main office at 40 Water Street.
Reference was made to the closing of the Charlestown
Trust Co. on Dec. 21 1931 in these columns Dec. 26, page 4271,
and a second reference to its affairs appeared in our issue
of Aug. 27 last, page 1434.
For the first time in several years a petition has been filed
with the State Bank Commissioner of Massachusetts seeking
a charter for a new trust company in downtown Boston.
The petitioners In this instance are George B. Watson, Allan
H. Sturges, J. Henry Miley and others. The Boston "Transcript" of Sept. 27, from which we have quoted above, continuing, said:
Mr. Watson ix to be the Chairman of the Board of Directors;
Mr.
Sturges, President, and Mr. Miley, Vice-President of the new bank if
the
Volume 135
Financial Chronicle
Co.
charter is granted. All three were head officers of the Liberty Trust
they
up to the time when it was merged with the Beacon Trust Co., when
went with the latter. On the Beacon being merged with the Atlantic
until
National Bank, they became associated with the latter, remaining
liquidating
the Atlantic was taken over by the First National Bank, which is
its assets.
and
The plan contemplates naming the new bank the Pilgrim Trust Co.,
exact
to have $300,000 capital and $150,000 surplus at the start. The
location has not been picked, but it is expected that if the charter is
granted the bank will secure quarters not far from where the Liberty Trust
Co. had its main office at Washington and Court Streets.
Boston, a quarter-century or so ago, had a Puritan Trust Co., which had
its office on Court Street about opposite City Hall Annex. The late John D.
Long was its President just after he served as Secretary of the Navy. Its
charter was for years held by the United States Trust Co., which purchased
It. At one time Robert M. Washburn was reported to be contemplating
acquiring it in order to open a bank at 209 Washington Street, but nothing
came of this effort. Now comes the plan for the Pilgrim Trust Co.
The law specifies that such charters may be granted on the basis of serving "public necessity and convenience," so a hearing will be necessary
before the State Board of Bank Incorporation. A date probably will be set
for this hearing within a short time.
Daniel H. Murray resigned as President of the Paterson
National Bank, Paterson, N. J., at a meeting of the directors
of the
on Sept. 27, and was thereupon made Chairman
in the
succeeded
be
will
Murray
Mr.
Board of Directors.
Presidency, it was stated, by Silas Thomas, a director of the
institution, who has been serving as Mr. Murray's assistant.
Mr. Murray gave ill health as the reason for relinquishing
on
his office. Paterson advices to the Newark "News"
Sept. 28, reporting the foregoing, also said:
Mr. Thomas has been a resident of Paterson 25 years, during 20 of which
he was Vice-President and General Manager of the Manhattan Shirt Mills.
The last five years he has been a director of the bank. •
Wm. H. Roberts, Jr., has been elected an Assistant
Secretary of the Fidelity-Philadelphia Trust Co., Philadelphia, Pa.
Trustees of The Hartford-Connecticut Trust Co. of Hartford, Conn., at their regular meeting on Sept. 22, voted a
quarterly dividend of 3% on the capital stock of the institution, payable Oct. 1 to stockholders of record at the
close of business Sept. 22.
With reference to the affairs of the defunct private bank
of Pallotti, Andretta & Co., Inc., of Hartford, Conn., which
was closed in December 1930 by the Connecticut State Bank
Commissioner, the Hartford "Courant" of Sept. 22 stated
that a new plan to aid the depositors of the institution by
organizing a salvage company to purchase the assets and
liabilities now in the hands of John L. Bonee, the receiver,
is being promoted by the Depositors' Protective Committee.
We quote furthermore, in part, from the paper mentioned,
as follows:
In accordance with the new plan, devised by Guy M. Walker of 870 Lex.
ington Avenue, New York City, depositors are being asked to assign all
deposits and claims against the Pallotti, Andretta & Co., Inc., to the
Depositors' Protective Committee "or to an assets realization company to
be organized for the purpose of carrying the salvage of the said assets and
the use of said deposits and claims by the said assets realization company to
purchase all the assets of said Pallotti, Andretta & Co., Inc., from the
receiver now holding them."
"In consideration of the services rendered by the Depositors' Protective
Committee to the depositors and other claimants against the said Pallotti,
Andretta St Co., Inc," states the agreement which depositors are asked to
sign, "and in consideration of the carrying out by the said Protective
Committee of the said plan of salvage and reorganization, the undersigned
depositors or claimants do hereby sell, assign, and transfer to said Depositors' Protective Committee his or her said deposit or claim against the
said Pallotti, Andretta & Co., Inc., or against the receiver thereof, transferring to said Protective Oommittee all the rights of the said depositor
or claimant in and to the said deposit or claim against said Pallotti,
Andretta & Co., Inc., and authorizing the said Protective Committee to
assign and transfer his or her said deposit or claim or to receipt in full
or in part therefor as fully and effectively as the said depositor or claimant
might himself or herself do."
The agreement also would give the Depositors' Protective Committee
power to sell, assign, transfer or acquire the deposits by a majority of the
Protective Committee either at a meeting or in writing without a meeting.
In return for signing the agreement, "It is understood that when the said
assets realization company has been organized and has purchased the assets
of said Pallotti, Andretta St Co., Inc., from the receiver now holding them
that I will receive from said Protective Committee a certificate or receipt
representing my pro rata share of the stock of said assets realization
company," the agreement states.
The agreement points out that "a recent statement of the receiver who
has possession of the assets of said Pallotti, Andreae & Co., Inc., shows an
enormous shrinkage in the said assets of that company." It further states
that "it is apparent that the salvage of the assets of this company and the
protection of the depositors requires a plan that will immediately terminate
the receivership and place the assets in the control of the depositors and
claimants who are interested in them."
The plan was devised, it was said, after a study of the reports filed by
the receiver for the period between Jan. 9 1931 and March 31 1932. The
study, undertaken by Ernest H. Buck, former Manager of the bank and now
a member of the Depositors' Protective Committee, states that "it is well
in order to say that this corporation on the date of the receiver's appointment had realizable resources to distribute a 50% dividend to its creditors."
It points out that "there has been a net decrease in assets of $370,416.72
with a corresponding decrease in liabilities of $201,817.56, and net cash
realization of $168,599.16."
"The receivers have actually come in possession of $324,754.76," Mr.
Buck's report states, "and It may be noted that against this amount
$54,582.13 has been applied for the payment of preferred claims and other
reductions in liabilities, $10,283.91 for the receiver's operation expenses,
$43,221.98 for cost of receivership, and $218,110.18 represents the real
estate expenses which should be carefully investigated and corrected at
once."
Mr. Buck's report, dated Sept. 15, recommends that "the policy of
administering this real estate should be very conservative. Such a policy
may result favorably, but if neglected, and as time passes and expenses
grow, together with depreciation and other burdens accumulating from
year to year, this corporation is liable to see and face the destruction of all
other liquid sects as it appears now. There are only two possible solutions
to such a situation, the securing of additional income to carry those heavy
costs or the disposing of the burdensome properties." . . .
Martin M. Rafter, formerly connected with the Second
Bank & Trust Co. of Hoboken, N. J., has been appointed
Department Manager of the Jefferson Trust Co. of that city,
according to the "Jersey Observer" of Sept. 22.
2281
From the Philadelphia "Ledger" of Sept. 24 it is learned
the
that arrangements have been virtually completed for
consolidation of the Downingtown National Bank at Downingtown, Pa., and the Grange National of Chester County, in
Downingtown. The new organization will continue the
name of the Downingtown National Bank and will have
total resources of more than $2,250,000. Officers, the "Ledger" stated, would be Thomas W. Downing, President;
Charles T. Thomas, Vice-President, and E. P. Fisher, VicePresident and Cashier.
Announcement was made on Sept. 23 by Dr. William D.
Gordon, State Secretary of Banking for Pennsylvania, that
the Coatesan advance payment of 20% to 4,200 depositors of
Oct. 5
ville Trust Co., at Coatesville, Pa., would be made on
of
Journal"
"Finance
Philadelphia
the
to
next, according
Sept. 23, which added:
amount to
This is the second payment made to depositors, and will
$162,870. First payment of 20% was made Jan. 11.
noted in our
The closing of this bank, on Oct. 13 1931, was
issue of Oct. 17 last, page 2557.
Sept. 24
It is learned from the Philadelphia "Ledger" of
Provident
that at a regular meeting of the directors of the
Van Meter,
Trust Co. of Philadelphia,'held recently, Louis W.
formerly Assistant Trust Officer, was promoted to Trust
Price
Officer, and the folowing new officers appointed: E.
Cummings,
C.
Howard
and
Nicholson
Francis
Cheyney, S.
Assistant Trust Officers, and John A. Leo and Edwin A.
Soast, Assistant Treasurers.
The Springfield National Bank of Springfield, Pa., failed
to open for business on Sept. 22, according to a dispatch
on
from that place by the Associated Press, which went
to say:
busiAt a meeting of the Board of Directors it was decided to suspend
Baker,
ness, and the affairs of the institution were turned over to William B.
with
1927,
13
Jan.
organized
a National bank examiner. The bank was
capital stock of $50,000, and at the beginning of the year deposits were
listed as amounting to $121,000.
The Philadelphia "Ledger" of Sept. 23, in reporting the
failure, gave the bank's deposits on Sept. 21 as $84,000.
Officers were named as follows: L. T. Brehm, President;
William Wood Nofer and William A. Allison, Vice-Presidents, and Earl It. Miller, Cashier.
From the Philadelphia "Ledger" of Sept. 24 it is learned
that five closed banks in Lackawanna County, Pa., are
shortly to receive dividends, according to an announcement
made Sept. 23 by Dr. William D. Gordon, State Secretary
of Banking for Pennsylvania. Although definite dates for
the distributions were not announced, it was stated that all
payments would be made previous to Oct. 27 next. The
Lackawanna County banks and the proposed payments
follow:
Bosak State Bank, Scranton, 10%, $400,000 to 10,000 depositors.
Simpson State Bank, Simpson, 15%, $63,000 to 2,500 depositors.
Miners Savings Bank & Trust Co., Olyphant, 10%, $264,000 to 7,800
depositors.
Carbondale Miners' & Mechanics' Savings Bank, Carbondale, 6%, $183,700
to 10,500 depositors.
Anthracite Trust Co., Scranton, 10%, $214,000 to 12,000 depositors.
Directors of the Baltimore Trust Co. of Baltimore, Md.,
have decided to discontinue any interest in the retail securities business, according to a statement given out Sept. 19 by
Howard Bruce, Chairman of the Board of the trust company. The Baltimore "Sun" of Sept. 20, from which the
above information is obtained, continuing, said:
With this end in view, the Baltimore-Gillet Co. will become inactive.
Quiet & Co., who have completed financial arrangements necessary for
resumption of their own operations in the investment banking business,
will, at an early date, reoccupy their old building, southeast corner of Light
2282
Financial Chronicle
and Redwood Streets, taking over the entire organization of the BaltimoreGillet Co.
Officers of Gillet & Co. will be: Charles B. Gillet, President; Williaiaa
S. Merrick, Vice-President; Ridgely Fisher, Vice-President; Richard Bond,
Vice-President; L. V. Cochrane, Treasurer; T. P. Winand, Secretary.
Charles B. Gillet is also a director of the Maryland Casualty Co., the
Equitable Trust Co., and a director and member of the Executive Committee
of the Fidelity & Guaranty Fire Corp., and the Maryland Title Securities
Corporation.
Mr. Bruce explained that the present move is one that has been contemplated by the Board of the Baltimore Trust Co. for some time, and is in
line with similar moves made by some of the most prominent institutions
In the United States.
A dividend of 15%, made possible by a loan of $120,000
from the Reconstruction Finance Corporation, will be paid
shortly to the depositors of the Broadway Bank & Trust Co.
of Richmond, Va., which closed its doors in September 1931,
it is learned from the Richmond "Dispatch" of Sept. 23,
which said in part:
Checks will be mailed to the 8,000 depositors of the defunct Broadway
Rank & Trust Co., paying them 15c. on the dollar, as soon as the details
incident to the payment can be cleared up, probably within the next 30 days,
Judge Robert N. Pollard, of the Law and Equity Court, who will make the
distribution, said yesterday (Sept. 22). . . .
The first step will be for the Court to approve the report of Special Commissioner S. B. Witt, setting forth the names of the depositors and the
amounts they had on deposit, Judge Pollard explained. This report is
almost ready.
When it is approved, the Court will declare the 15% dividend made possible by the 11. F. C. loan, and will order Guy B. Hazelgrove and R. Latimer
Gordon, receivers, to deposit $120,000 in a local bank to the credit of the
Court. The Court will then draw checks on this amount and mail them to
each of the depositors.
As the affairs of the bank are wound up by the receivers, additional
payments will be made to the depositors, but no one can say at this time
how large those payments will be. The report of the receivers, filed with
the Court last December, showed total deposits of $914,610, with approximately $70,000 in cash on hand and due from other banks.
The bask, situated at Fifteenth and Main Streets, was used mainly by
citizens whose businesses and homes are situated in the lower Main Street
section of the city. The building has been taken over by the American
Bank & Trust Co., which now operates a branch there.
On Aug. 17 last the First National Bank of Mannington,
West Va., was placed in voluntary liquidation. The institution, which was capitalized at $60,000, was succeeded by
the First Exchange Bank of the same place.
Bowling Green, Ohio, advices, on Sept. 24, printed in the
Toledo "Blade," stated that depositors of the closed Exchange Bank of Bloomdale, Ohio, would receive another 10%
dividend, if a petition filed in the Common Pleas Court at
Bowling Green is allowed by Judge E. G. McClelland. The
dividend, it was said, would make 30% the depositors have
received since the bank closed.
The Cleveland Trust Co. of Cleveland, Ohio, on Sept. 21
announced that it had taken over the assets and deposit
liabilities of the People's Savings Bank of Lorain, Ohio,
with the view to merging the institution with the Lorain
branch of the trust company. Cleveland advices by the
Associated Press, reporting this, furthermore said:
The Lorain bank was organized in 1917, has a capital of $100,000 and
deposits at the time of last published statement of $650,000.
Oct. 1
1932
thereby maintaining the $18 annual dividend rate, according to the Chicago "Post" of Sept. 20. At the same meeting
of the Board, Adrian H. Dubach was appointed an Assistant
Secretary. The "Post" went on to say:
The directors of the Northern Trust Safe Deposit Co. elected Krebs Beebe
as Manager of the vault to succeed Oscar C. Landolph, deceased.
The Citizens' State Bank of Plainwell, Mich., closed its
doors on Sept. 20 for the purpose of reorganization, according to the Michigan "Investor" of Sept. 24. The institution
is capitalized at $50,000 and was established in 1903, it was
stated.
The defunct Berrien County State Bank of Benton Harbor,
Mich., paid a 20% dividend on Sept. 20, as reported in the
Michigan "Investor" of Sept. 24, which continuing said:
This was made possible by a Reconstruction Finance Corporation loan
obtained by W. Worth Bean, Jr., receiver. The sum of $125,612.82 was
paid out by the bank. Approximately 2,500 participated in the distribu•
tion. The loan set a precedent for closed State banks. The receiver credits
Senator Vandenberg with expediting matters at Washington. The bank
was closed about a year ago and has paid three dividends.
On Sept. 24 the Reedsburg Bank, at Reedsburg, Wis., and
the Citizens' State Bank, of that place, were consolidated
under the title of the former. The enlarged institution is
capitalized at $200,000 and has surplus and undivided profits
of $110,000. The officers are as follows: R. P. Perry, President; Conrad G. Wiesler, Otto Krause and W. H. Hahn,
Vice-Presidents; J. H. Hickey, Cashier, and Elmer A. Kutzbach, Theresa Thnlin, H. C. Miller and Paul S. Schultz,
Assistant Cashiers.
Announcement was made on Sept. 23 that the affairs of
the National Exchange Bank of Waukesha, Wis., were to
be taken over by the Waukesha National Bank of that city,
if pending negotiations could be consummated promptly.
The Milwaukee "Sentinel" of Sept. 24, from which this is
learned, went on to say:
The Waukesha National is the largest bank in Waukesha County. It is
understood the deal will assure the National Exchange Bank depositors
against any substantial loss and make available immediately about 70%
of all deposits in the National Exchange Bank as soon as details of the
plan now being worked upon can be completed.
The plan contemplates that not only 70% of the depositors' funds be now
paid, but that such depreciated and frozen assets as the National Exchange
owns and cannot readily realize upon will be set aside and placed
in the
hands of three trustees for orderly liquidation for the benefit of
such
depositors.
The National Exohange has been attempting to get into good financial
condition for some time, and had plans for a voluntary assessment of 80%
against its stockholders for the purpose of raising enough money to warrant
continuing in business, but it has now appeared advisable to the officers, in
the interests of depositors, to consider the disposition of the assets.
The Waukesha National has been considering this matter at the
of the National Exchange and is actuated in it offer by the desire request
to be of
benefit to the community at large and to avoid tying up of the
depositors'
money and avoid the delay and expense of loss which necessarily arises
if
affairs
placed in the hands of the Comptroller of the Currency,
o
t
officers
hifeaffars
staed.Th
officers
of the National Exchange Bank announced they will continue
business as usual except that they will not receive or pay out money
until
the negotiations can be concluded. The deposits of the National
Exchange
have fallen to about $800,000. The Waukesha National has total
assets
of about $6,250,000, and, according to it last statement, about
$2,000,000
in cash and cash securities.
Hoyt Volney Shulters, President of the National ,OltY
Bank of Cleveland, Ohio, and of the Cleveland Clearing
Depositors of the closed Na- tional Bank of De Pere, Wis.,
House Association, as well as Chairman of the Cleveland
are receiving a dividend of 20%, according to the "Comgroup of the Reconstruction Finance Corporation, died on
mercial West" of Sept. 24.
Sept. 29 of heart disease at the Biltmore Hotel, New York,
Supplementing our item
of last week (page 2105) with
while on a visit to the city. He was sixty-three years old.
Mr. Shulters was born in Ellington, N. Y., and received his reference to the National Bank of Commerce of Milwaukee,
education in the Ellington Academy and Rochester Business Wis., baying become a branch of the First Wisconsin National Bank of that city, with which it formerly was
College. After working in a flour mill and box factory for
affiliseveral years he in 1887 accepted a position as accountant ated, the Milwaukee "Sentinel" of Sept. 24, after stating
for the Tiffin (Ohio) Natural Gas Co. Two years later, that the National Bank of Commerce had begun functionafter the absorption of that company by the Northwestern ing as a branch of the First Wisconsin National Bank the
previous day, went on to say:
Ohio Gas Co., he was made Assistant Secretary-Treasurer
as a branch followed approval of the step by
of the latter company, and in 1895, when the offices were of Designation
the National Bank of Commerce, which approval coincided stockholders
with vacating
transferred to Toledo, Ohio, was promoted to Secretary- by Judge A. C. Hoppmann, Madison, of the temporary
by the Attorney General's office, which has challengedInjunction obtained
Treasurer. When the late M. B. Daley and other Standard
the right of the
First Wisconsin to open more branches.
Oil interests acquired the East Ohio Gas Co. in 1902, Mr.
Officials of the First Wisconsin contend they are within
their rights
Shulters went to Cleveland as Secretary-Treasurer of the in establishing the National Bank of Commerce RB a branch, which
change
was based on the McFadden Act, which permits
branch banking by nacompany. He was elected a director of the National City tional
banks where State laws do not forbid it.
Bank in 1916 and on Nov. 1 1918 was chosen President of
Alfred G. Schultz and Edmund Fitzgerald,
Vioe-Presidenta
the Nathe institution, the office he held at his death. The de- tional Bank of Commerce, have been made Vice-Presidents ofofthe
First
Wisconsin.
ceased banker was also a director in many corporations,
including the Cleveland Union Stock Yards Co., Dover Fire
According to the "Commercial West" of Sept. 24, deposiBrick Co. and the M. S. Korach Co.
tors of the defunct First State Bank of Watford City, N. D..
are being paid a 10% dividend.
Directors of the Northern Trust Co. of Chicago, Ill., on
Sept. 20 declared the regular quarterly dividend of $4.50 a
The "Commercial West" of Sept. 24 reports that
H. J.
share, payable Oct. 1 to stockholders of record Sept. 20, Johnson has been elected President
and a director of the
Volume 135
Financial Chronicle
First State Bank of Burlington, N. D., succeeding James
Johnson, whose death occurred recently.
The Hedrick Ravings Bank, Hedrick, Iowa, was formed
recently by the Union of the Iowa Savings Bank of Hedrick
and the Hedrick National Bank. The new institution is
capitalized at $26,000, with surplus and undivided profits
of $12,056; has deposits of $279,554, and total resources of
$380,162. Officers are as follows: J. B. Swearingen, President; It. A. Bennett, Vice-President; L. E. Fleak, Cashier;
C. G. Miller, Assistant Vice-President, and 0. P. Weldin,
Cashier.
The Nebraska State Banking Department on Sept. 23 announced that checks had been sent to depositors of the
failed Sargent State Bank at Sargent, Neb., representing an
initial dividend of 24%, according to advices by the Associated Press from Lincoln, Neb.
The closing on Sept. 19 of the Farmers'& Merchants' Bank
at Foster, Neb., was indicated in a dispatch by the Associated
Press from Lincoln, Neb., on that date, which said in part:
Closing of the Farmers' & Merchants' Bank at Foster, which was held up
and robbed last Monday (Sept. 12) was announced Monday by the State
Banking Department. . . .
Examiner Virgil S. Lee took charge of the bank for the State.
Only $20,000 of deposits remained in the bank, although it had $200,000
several years ago. The institution was capitalized at $25,000; William
Reikofsky was President; B. J. Inhelder, Vice-President, and D. L. Story,
Cashier.
The Comptroller of the Currency on Sept. 24 issued a
charter for the Hamilton National Bank of Johnson City,
Tenn., with capital of $250,000. The new bank will succeed
the Unaka & City National Bank of Johnson City. W. E.
Tomlinson is President and T. W. Roland, Cashier, of the
institution.
A press dispatch from Elizabeth City, N. C., appearing
in the Raleigh "News and Observer" on Sept. 21, stated
that all plans for reopening the closed Savings Bank & Trust
Co. of Elizabeth City had been definitely abandoned, according to a statement released by the State Banking Department
of North Carolina on Sept. 20. We quote further from the
dispatch as follows:
Reasons offered for abandoning the proposal to reopen the bank were
given as "little active interest in plans for reopening the bank, and that
the assets of the bank do not represent a safe basis as the assets of an
open bank."
A. M. Burns Jr., who has been acting for the State Banking Department,
has been relieved of his duties here and left Tuesday morning for Waynesville, where he will have charge of the recently closed Citizens' Bank &
Trust Co. of that city. He is succeeded in Elizabeth City by W. 0. Crump
of Sunbury, who had charge of the Savings Bank prior to the coming of
Mr. Burns.
With reference to the affairs of the Farmers' & Merchants'
Bank of Kinston, N. C., which failed in April 1931, depositors
may get an initial dividend this fall, according to a press
dispatch from that place on Sept. 26, appearing in the
Raleigh "News & Observer," which furthermore said:
An announcement has been made, but it is understood a "nominal" payment is planned if fall collections warrant it.
The Board of Directors of the Hibernia Bank & Trust
Co. of New Orleans, La., has declared the regular quarterly
2%) a share on its $25 par value
dividend of 621/2% (21/
stock. The dividend was made payable on Oct. 1 1932 out
of the earnings of the quarter ending Sept. 30 1932 to stockholders of record Sept. 23 1932. This is the 107th consecutive
dividend to be paid stockholders of the bank since its organization in 1870.
Harry C. James, a Vice-President of the Denver National
Bank, Denver, Colo., and an important figure in Colorado,
died at his country home near Denver on Sept. 23. Death
was due to a heart attack. The son of William H. James,
pioneer mining man, Mr. James was born in Georgetown.
Colo., in 1868. After receiving his education in the Denver
public schools and the University of Michigan, he entered
business with his father in Denver. For a time he was
Treasurer of the Shredded Wheat Biscuit Co. in association
with H. D. Perky, milling magnate, but gave up the position
to devote himself to mining interests. Mr. James was made
a Vice-President of the Denver National Bank (the office
he held at his death) in 1927. Previous to that time he
had been for many years a director of the institution. Aside
from his banking interests he was President of the United
Metals, Mining & Tunnel Co., and Vice-President of the Yak
Mining & Tunnel Co. He was also a director of the Denver
Gas & Electric Co. and the Portland Cement Co.
2283
Associated Press advices from Boise, Ida., under date of
Sept. 27, reported that a plan for reopening the First National Bank of Idaho (Boise) and its nine affiliated banks
in Southern Idaho and Eastern Oregon, assuring depositors
100 cents on the dollar, has been drawn up by a committee
of leading business men in co-operation with representatives
of the Reconstruction Finance Corporation. The dispatch
likewise said:
The plan calls for regulated withdrawal and removal of all frozen assets
by a subscription of $600,000 worth of capital stock of the banks. The
banks, with deposits of approximately $10,000,000, failed to open August
31. Crawford Moore, son of the founder of the First National Bank of
Idaho, which was established in 1867, was head of the group.
The closing of the institutions was noted in our Sept 3
issue, page 1603.
Concerning the affairs of the First National Bank of
Beverly Hills (Los Angeles County), Calif., the closing of
which was indicated in our issue of June 11 last, page 4273,
the Los Angeles "Times" of Sept. 24 carried the following:
Hope that he may yet succeed In his efforts to obtain financial aid
and reopen the First National Bank of Beverly Hills, closed June 3 by Its
Board of Directors, was expressed yesterday (Sept. 23) by Richard L.
Hargreaves, formerly President of the institution. Hargreaves, now in
the Federal bankruptcy Court before Referee Moss, voiced this hope at
the conclusion of the meeting of his creditors. He has passed the last
three months in efforts to reorganize and reopen the bank, now being
liquidated by Federal Bank Receiver Schilling, and has not yet given up
hope. E. A. Lynch has been appointed trustee of the bankrupt estate
and Ralph F. Bagley is counsel.
"In administering the estate of Hargreaves, everything possible will be
done to assist the receiver of the First National Bank," said the attorney. "An early payment to the depositors is of prime importance to
them, and every asset of the bank should be collected."
Secured claims against the estate total $708,381, secured by stocks.
Unsecured notes and claims amount to about $420,830. Most of the
claims are loans from banks. Hargreaves said his receivables in the form
of notes and memberships total about $122,562, most of which consists
of stocks pledged to secure notes. The First National Bank is a creditor
in the amount of $153,700 for assessments levied against him as a stockholder.
Although carrying $197,000 life insurance, little equity will remain for
the creditors, it was said.
In our previous item, we reported that the closed institution, in which scores of film notables were depositors, had
deposits, exclusive of public funds, aggregating $4,200,000.
Effective Aug. 11 1932, the City National Bank of San
Francisco. Cal., capitalized at $625,000, went into voluntary
liquidation. The institution was absorbed by the Pacific
National Bank of San Francisco.
Howard Whipple, who has been Executive Vice-President
of District No. 6, Bank of America National Trust & Savings
Association, has been transferred to San Francisco to assume
a like position in District No. 4, replacing C. F. Wente,
Executive Vice-President, who has been transferred to the
general executive division. At present, Mr. Wente is accompanying A. P. Giannini, Chairman of the bank's Board,
in a tour of the State, visiting the 410 banking offices in
243 California cities. Dwight L. Clarke goes from the
Bakersfield Branch to assume the executive Vice-Presidency
of districts No. 5 and 6, with headquarters at the Los
Angeles Main Office of the bank, and A. C. Dimon goes to
Bakersfield as Vice-President and Manager.
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Except for a moderate upward reaction on Wednesday,
the general trend of the market this week has been toward
lower levels. Trading has been extremely quiet and the
turnover unusually small. Some new tops were registered
on Saturday during the early trading, but most of these
were canceled in the realizing later in the day. Motor
shares were slightly higher early in the week, but failed to
hold their gains. Oil shares were off and there was little
movement in the specialties group. Steel shares moved
alternately up and down, and industrial shares were generally
down. Call money renewed at 2% on Monday and continued
unchanged at that rate throughout the week.
Stock market prices displayed a moderate amount of
strength during the abbreviated session on Saturday, though
some gains were slightly shaded at the close. Motor shares
and railroad issues were the strong stocks and led the first
hour upswing, though advances were registered in practically
all active groups. The best gain was recorded by Norfolk &
Western, which shot upward about 7 points, followargi
Baltimore & Ohio, which forged ahead 1.X points to 193,
and Union Pacific, with a gain of 1 point to SOM. Motor
2284
Financial Chronicle
Oct. I 1932
shares were conspicuous throughout the session, General
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY, WEEKLY AND YEARLY.
Motors touching 19% at its top for the day and Mack Truck
closed at 2634, with a net gain of 2 points. United States
Stocks,
Railroad
State,
United
Total
Steel and Bethlehem Steel were in good demand, the former
Week Ended
Number of and MOW!. Municipal &
Mates
Bond
Sept. 30 1932.
Bonds.
Shares.
Poen Bonds
Bonds.
Sales.
showing a gain of 134 points at 4532, while Bethlehem got
Saturday
1,336.170 $4,379.000 $1,734.000
$659.000 36.772.000
up to 253
% at its peak. Other gains were American & Monday
5,658,000
2,082,970
3.031,000
1,428,100 10,117,100
Foreign Power pref., 234 points to 2234 Bethlehem Steel Tuesday
1,399,070
2.722,000
5,129,000
435,600
8.336,500
Wednesday
1,381,800
5,143,000
2.775.000
1.048,000
8,966,000
pref., 234 points to 4934; Brooklyn Union Gas, 234 points Thursday
1,336,420
2.678.000
5,815.000
1,311,000
9,804.000
Friday
1,169.060
5,006,000
2.694,000
494,000
8,194,000
to 8434; J. I. Case Co.,334 points to 58; Homestake Mining
Total
8,695,490 $31,130,000 315.684.000 $5,375,600 $52,189,600
Co,434 points to 127; Peoples Gas, 2 points to 75; Western
Union Telegraph, 234 points to 4234, and Firestone Tire &
Sales at
Week Ended Sept. 30.
Jan. 1 to Sept. 30.
New York Stock
Rubber pref. A, 33/2 points to 5834.
Exchange.
1932.
.1931.
1932.
1931.
The market was decidedly reactionary on Monday and
Stocks-No,of shares_
8,695,490 14,452,210
349,694,005
447,580,963
while selling pressure was not particularly aggressive at any
Bonds.
Government bonds ___ $5,375,600 $14,563,600
$496.185,350
$145,542,450
time, the trend generally was toward lower levels. The net State
& foreign bonds_
15,684,000 34,606.000
580,329,600
648,576,600
losses in the leading issues ranged from 1 to 4 or more points, Railroad & mtsc. bonds 31,130.000 48,931.000 1,292,302,000 1,373,872,900
Tntoal
5119 t no Ann 2012 IRA MR 29 2RA RIR Ordl 22 1A7 0111 AM
the weak spots including such popular issues as Western
Union Telegraph which receded 4 points to 3834, Allied
DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
Chemical & Dye 234 points to 8034, Air Reduction 334
BALTIMORE EXCHANGES.
points to 3834, Allis Chalmers 2 points to 10, American Can
Boston.
Philadelphia.
Baltimore.
33% points to 54, American Machine & Foundry 234 points
Week Ended
Sept. 30 1932.
Shares. Bond Sales. Shares. Bond Sates. Shares. Borulttales.
to 1434, American Telephone & Telegraph 35% points to
21,253
24.079
1123
26(1
4,Atchison 334 points to 5134, Auburn Auto 334 points Saturday
$5,000
Monday
43,721
28.752
$7.200
908
13.000
to 53, Bethlehem Steel 234 points to 22%, J. I. Case Com- Tuesday
31,080
$4,200
17.448
9.000
290
1.400
Wednesday
24,657
2,000
17.080
9,700
425
8,200
pany 4 points to 54, Coca Cola 534 points to 973'2, Columbian Thursday
23,321
4,000
17.764
2,000
990
3.100
Friday
4,990
4,000
2,979
587
3,000
Carbon 33/i points to 333%, Consolidated Gas 2% points to
Total
149.622
$14,200 108.102
827,900
60, Del. Lack. & West. 334 points to 39, Industrial Rayon
3.460
833,700
334 Points to 3334, Norfolk & Western 334 points to 10534, Prey, week revised 210,555 $3,200 174.662 827.600 5.086 838,700
Public Service of N. J. 4 points to 49, United Aircraft 354
points to 30, Union Pacific 4 points to 763/2, United States
ENGLISH FINANCIAL MARKET-PER CABLE.
Steel pref. 334 points to 7734 and Western Union 4 points
The
daily closing quotations for securities, Sm., at London,
to 28%.
Trading was quiet on Tuesday with a strong downward as reported by cable, have been as follows the past week:
Wed..
Thurs..
Tues.,
Sat.,
Mon.,
PM,
tendency until near the close when a brisk rally carried
Sept. 24. Sept. 26. Sept. 27. Sept. 28. Sept. 29. Sept. 30.
prices upward about 2 points. The turnover was unusually Silver, p. os_d.. 17 13-16d. 17 15-16d. 17 1116d. 1751d. 17 13-16d. 17 1-16d.
small and considerably below the previous day, though a Gold, p.fine os. 1188.56. 1198.1d. 1198.3d. 119s.5d. 1199.4d. 1198.5d.
214% _
7334
7334
73%
7334
7434
7334
number of the more active stocks managed to pull through Consol,
British 5%---ling
10234
102%
_
10134
10234
to the side of the advance before the close. These included British 434%__
102
102
102
102
102
French Rentes
Air Reduction, 234 points to 603/2; Columbian Carbon, 1%
5
(In Paris)3% fr. ____
83.90
84.10
83.70
83.40
82.70
points to 35; Du Pont, 134 points to 4234; Louisville & French
War L'n
Nashville, 134 points to 30; Northwest Telephone,434 points
(in Paris)5% fr.
100.90
100.90
100.70
100.90
100.90
The price of silver in New York on the same days has been:
to 2934, and Western Union Telegraph, 134 points to 3934.
Silver
In
N.
Y.,
Prices took a sharp upward turn on Wednesday and a
per os. (cts.) 2734
2734
2734
2734
2734
2734
number of prominent issues registered gains up to 3 or more
points. Practically all active groups participated in the
COURSE OF BANK CLEARINGS.
upward swing, though the turnover was considerably under
Bank clearings this week will again show a decrease as
that of some of the recent sessions. The changes for the day
were largely on the side of the advance and included Allied compared with a year ago. Preliminary figures compiled
Chemical ez Dye,234 points to 8234; American Can,2 points by us, based upon telegraphic advices from the chief cities
to 56; Amer. Tel. & Tel., 2 points to 11434; Atchison, 334 of the country, indicate that for the week ended to-day
points to 5734; Auburn Auto, 234 points to 5634; Brooklyn (Saturday, Oct. 1), bank exchanges for all the cities of
the United States from which it is possible to obtain weekly
Union Gas,3 points to 8334; Brown Shoe, 234 points to 323
%;
J. I. Case Co., 334 points to 5734; Del. Lack. & Western, returns will be 49.5% below those for the corresponding
234 points to 42; du Pont, 234 points to 4434; International week last year. Our preliminary total stands at $4,525,Harvester, 234 points to 293
%; Mack Truck, 234 points to 675,224, against $8,959,354,553 for the same week in 1931.
2834; Standard Gas & Elec. pref., 2 points to 50; Westing- At this center there is a loss for the five days ended Friday
house, 234 points to 3634; Woolworth, 134 points to 40; of 54.8%. Our comparative summary for the week follows:
Western Union Tel., 13% points to 4134, and United States
Clearings-Returns by Telegraph.
Per
3
Steel, 134 points to 44%.
1932.
Week Ending Sept. 80.
1931.
Cent.
Stocks turned downward on Thursday, the decline can- New York
32,259.452.567 84,994,123,820 -54.8
celing most of the gains of the preceding day. Selling was Chicago
147.708.570
295.400,127 -50.0
Philadelphia
215,000.000
343,000.000 -37.3
not particularly aggressive, but the market continued to Boston
142.000.000
338,000.000 -58.0
Kansas City
44,781.201
66.873,852 -33.0
drift lower and net declines ranging from 1 to 3 points were St.
Louis
45.800 000
69,900.000 -34.5
Francisco
69,673 000
122,327,000 -43.0
registered at the close. A few stocks moved against the San
Los Angeles
No longer will re port clearings.
trend, but these were greatly in the minority. Among the Pittsburgh
62,134,528
139,801,490 -55.6
Detroit
45,956.802
98,118,499 -53.2
net declines for the day were such active speculative favorites Cleveland
44,405.829
102.558,262 -56.7
40.893.569
71.663,582 -42.9
as Allied Chemical & Dye, 234 points to 8034; Amer. Tel. & Baltimore
New Orleans
23,907.847
33,371,483 -28.8
Tel., 234 points to 112; Atchison,23
% points to 5434; Auburn
Twelve cities, five
83,141,713.913 88,875.338,215 -52.9
Auto, 3 points to 5334; Beatrice Creamery pref., 334 points Other cities, five daysdays
483,015.440
727.754.380 -36.4
to 7434; J. I. Case, 394 points to 5434; Delaware LackaTotal all cities, five days
83.804,729,353 87,403,092,595 -51.3
920,945,871
wanna & Western,2 points to 40;Eastman Kodak,33% points All cities, one day
1.556,281,958 -40.8
Total all eltIon tnr oo.ok
34.525.675.224 18.950 2114 11112 -io a
to 5434;Shell Union Oil pref.594 points to 483%;United States
Industrial Alcohol, 25
% points to 303%; United States Steel
Complete and exact details for the week covered by the
pref.,2 points to 7734; Western Union Telegraph, 234 points foregoing will appear in our ssue of next week.
We cannot
to 39; Woolworth, 134 points to 3034, and Loose-Wiles Bis- furnish them to-day, inasmuch as the week ends
to-day
cuit, 234 points to 27.
(Saturday) and the Saturday figures will not be available
The market continued its downward drift on Friday, until noon to-day. Accordingly, in the above
the last day
though there was a moderate upward movement toward of the week has to be in all cases estimated.
the end of the session that erased a part of the early recessions.
In the elaborate detailed statement, however, which we
Trading was dull and without noteworthy movement during present further below, we are able to give
final and complete
the greater part of the day. Considerable liquidation was results for the week previous, the week ended Sept. 24.
apparent during the morning session, but most of this was For that week there is a decrease of 43.9%,
the aggregate
absorbed as the day progressed. A few of the preferred of clearings for the whole country being $4,416,627,151,
stocks moved against the trend, but many of the market against $7,866,003,980 in the same week in 1931. Outside
favorites were off fractionally on the day.
of this city there is a decrease of 35.7%, the bank clearings
1932.
Total(20 cities)
Inc.or
Dec.
1931.
1930.
Federal Reserve Discs.
195 Boston. __ _12 cities
2nd New York_.12 "
3rd Philadelphia 10 "
4th Cleveland... 6 "
5th Richmond__ 6 "
(1th Atlanta._ _.11 "
7th Chicago._ _ _20 ••
8th St. Louis-. 5 "
9th Minneanolts 7 "
10th KansasCity10 "
11th Dallas. _ _ _ 5 "
12111 San Fran_14 "
$
192,913,353
2.833.271,943
269.118,805
177,419,868
95,818,161
82.692,588
232.393,657
89,989,865
71,767,633
90,935,702
39,039.242
181.233.334
S
362,839,267
6,405,036.387
414,025,177
296,543.776
141,750,946
105,721,699
520,587,617
112.979,801
85,629,735
122.698,362
50.618.832
247.623,381
119 cities
Total
Outside N. Y. City
4,416,627,151
1,661,622.363
7,866503,980 -43.9
2.583.772,555 -35.7
247,522.132
281,945,661 -12.2
32 cities
1929.
$
$
%
469,896,123
-46.8
691,091.796
-47.6 6,339,466.180 10,683,737,053
447,275.290
635,686.364
-35.0
469,145,467
360.042,510
-40.2
158,597,567
179,339.736
-32.4
145.136.044
186,415,618
-21.8
793,077,795 1,124,386,282
-43.8
203,704,292
-20.3
154,478,538
117,866,554
156,587,592
-16.2
-25.9
166.561.060
219.869.121
-22.7
63,139.913
97,213,364
-26,8
296.091,063
390.800,783
9,511.931.637 14,937,977,068
3,306.506,229 4,463,900,264
368.765.043
477,069,739
We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended Sept. 24.
Clearings at
1932.
1931.
ing.or
'Dec.
1930.
$
1929.
$
$
%
First Federal Reserve Dist rict-Bosto n497.640 -37.8
Mae-Bangor__
309,376
Portland
2,852,577 -29.7
2,004.445
ass.-Boston _ _ 167,353.879 324,193,388 -48.4
781,717 -4.0
Fall River._..
750,237
409.493 -44.2
Lowell
228,339
New Bedford..
771.784 -42.0
447,266
Springfield_._
3.746.677 -36.2
2,392,228
Worcester
2,756,081 -45.6
1,498,286
inn.-Hartford.
11,057,918 -33.5
7,350,556
New Haven_...
6.146.795 -44.7
3,397,630
9,223,300 -26.8
.I.-Providence
6.748,500
451,897 -4.3
N.H.-Manch'er
432,611
595,149
4,236,284
424,088,782
764,422
402.321
807,534
3.754,736
3.178.365
14.106,673
6.759.007
10.617,800
585,050
619,173
5,245,290
523,324,013
1,139,906
1,141,803
1,295,791
5,778.464
3,992.412
22,836,455
9,771.933
15.243,000
703.556
362,889.267 -46.8
469,896.123
591,091,796
Total(12 cities)
192,913,353
Second Feder at Reserve D istrict-New
5,711,150
Y.-Albany.
.
4,497.946
Minghamton....
889.942
640,359
Buffalo
36,416.368
22,533,654
748,672
Elmira
519,454
Jamestown_ _ _ _
691,100
485,617
New York
2,755,004,788 5,282.231.425
7,765,240
Rochester
5,657,820
3,751,886
Syracuse
2,993,519
3,089,166
onn.-Stamford
2,144.043
365,700
l. 2.-Montclair
339,364
25,278,402
Newark
16.882.928
38,097,336
Northern N. J.
'21,575,451
$
York5,569.421
-21.2
5,644,392
1,104,769
1,352,041
-28.0
44,668,914
-38.1
71.553,586
782,443
-30.6
720.811
-29.7
1,100.293
1.498,837
-47.8 6,205,425,408 10474076,804
9,626,857
-27.1
18,438,992
4.105,465
-20.2
7,459,977
3,498,400
-30.6
4,654,630
603.133
-7.2
707.468
27,912,994
-33.2
37,328,083
35.068.083
-43.4
60,301.432
Total(12 cities) 2.833.274.943 5,405,036,387 -47.6 6,339.466.180 10683737,053
Third Federal Reserve Dist rict-Philad el phla1,325,477
679,538 -51.9
A.-Altoona
326.643
_
4,246.681
3,906,213 -46.1
e2,107.205
Bethlehem- _..
931,157
716.207 -58.8
294,958
Chester
1,855.227
2.087.708 -51.7
1,008,093
Lancaster
257,000,000 393,000,000 -34.6 424,000.000
Philadelphia
2,677,023
2,690.398 -40.9
Reading
1,590.706
3,220.173 -34.5
4,394.048
2,110,013
Scranton
3,088,275
2,730.208 -38.1
1,690,235
Wilkes-Barre_
1,750,402
1,520.732 -46.4
814,952
York
3.474,000 -38.5
3,007,000
(.J.-Trenton..
2,206,000
1.611.456
5,601,071
1.086.762
1,912,918
604,000,000
4,706,068
6,408,096
3,761.629
2,006.916
4.591,448
Total(10 cities)
414,025,177 -35.0
447,275,290
635,686.364
Reserve D istrIct-Clev eland
3,930,000 -91.4
d338,000
b
b
59,927.205 -31.7
40,900,000
90,221,742 -35.3
58,388,543
8,948,900 -29.7
6,291,500
1,911,334 -56.6
c829,930
b
b
70,662,695 131,604,595 -46.3
7,384,050
b
49.075.170
118.935,019
14,142,400
2,014,444
b
168,491.477
9 .499.000
b
72,653,561
155,621,154
14,939,700
2,219.517
b
214,212.535
269.148,805
Fourth Feder at
ihio-Akron .
Canton
Cindnnati
Cleveland
Columbus
Mansfield
Youngstown _
'a.-Pittsburgh.
296.543,776 -40.1.
360,042,510
469,145,467
Fifth Federal teserve Dist riot-RIchin ond550.407 -44.4
306,286
V.Va.-Hunting'i
2.773.667 -29.1
1,965,401
/a.-Norfolk._
35,641.620 -19.7
28.628,759
Richmond
1,416,871 -46.9
752,828
1. C.-Chariwtot
80.034.216 -39.7
i(d.-Baltimore
48.227.587
21.334,165 -25.3
).C,-Washingtor
15,937,300
811,295
3,376.604
42,544,000
2.224.083
88.273,959
21,367.626
1,049,678
3,954.999
47,552,000
2,525.697
97,202.730
27,054,632
Total(6 cities) _
177,419,868
141,750,946 -32.4
158.597,567
179.339,736
Sixth Federal Reserve Dist riot-Atlant a3,298,147 -32.5
Penn.-Knoxv ilk
2,225,627
10,440,295 -17.5
8,608,605
Nashville
32,400.000 -21.6
25.400,000
3a.-Atlanta1.255,662 -14.4
1.075,369
Augusta
663,813 -22.5
467.535
Macon
-24.7
8,700.426
-Jacksonville
6,552.387
.
Fla
11,571.907 -28.2
8.313,160
53a.-Birming'm
1,122.847 -24.0
852.961
Mobile
•1.000,000 -9.9
900.562
Mias.-Jackson
104,973 +2.8
107,861
Vicksburg
28.188.521
35,223,629 -20.0
La.-NewOrleans
2,102,517
18,669,660
50,000,000
1,808,586
1.088,485
9,493.143
17,066,813
1,605,199
1.500.000
155.858
41.645.783
2.555,581
24,272,126
57.647.560
2,536.071
3,000,000
11,052,984
25,865,160
2,848,624
1.985,000
262.040
54,190,472
105,721,699 -21.8
145.136.044
186,415,618
Total(6 cities)
Total (11 cities)
95,818,161
82.692,588
1930.
Seventh Feder al Reserve D 'strict-Chi cago169,077
169,711 -58.1
71,025
Mich.-Adrian_ _
1,102,215
892,591 -58.4
371.624
Ann Arbor____
.183,175,521
-48.2
136.220,824
70.612,702
Detroit
6,078,925
4,064.139 -16.6
3,388,402
Grand Rapids_
5,131.772
8,902.726 -67.9
2,857.800
Lansing
2.757,795
1,305.736 -38.5
803.479
Ind.-Ft. Wayne
16.475,000
13,032,000 -29.0
9,260.000
Indianapolis_ _ _
2,156.733
1.129.879 -20.0
903.778
South Bend...
4.472,977
3.562,098 -28.4
2.550.474
Terre Haute_
24.560.526
18,568,953 -39.9
11,176,493
Wis.-Milwaukee
2,842.996
-73.9
2,490,040
650,260
Iowa-Cedar Rap
7,432,648
5,597,540 -20.9
4,425,819
Des Moines__ 5,548,099
3,380.337 -38.7
2,071,546
Sioux City_ --1,218,615
618,755
Waterloo
1,566,203
1,138.597
876,505
Ill.-Blooming'n
519.679,430
-43.2
313,230,988
177,860.499
Chicago
953,629
791,205 -51.3
385.307
Decatur
3,391,736
2,413,269 -24.2
1,829,552
Peoria
2,329,921
1,281.531 -67.4
417,689
Rockford_ _
_
2,033.977
1,776.698 +5.9
1,880.703
Springfield..._
292.393,657
520.587,617 -43.8
Eighth Federa I Reserve Dis trict-St. Lo ulsInd.- Evansville
82,100,000 -26.9
60.000,000
Mo.-St. Louis..
16,466,263
19,752.666 -16.6
Ky.
.-Louisville_
Owensboro._
10,333.456 +25.6
12,977.297
Tenn.- Memphis
108,953 -28.8
77,593
III.-Jacksonville
684,726 -31.5
468.712
Quincy
1929.
288,864
1,507.876
282,478.365
6.657.202
4,926.000
4,024,573
22.429,000
3,023.689
5,171,474
33,822.384
3,211,486
9,627.454
7,487.603
1,854,585
1,911,364
722,389,201
1,250,361
5.737,173
3,841,832
2,744,796
793,077,795 1,124,385.282
102,800,000
33,362,117
133.100,000
36,149,978
17.179.851
162,121
974,449
32.677.614
373.443
1,403.257
112,979,801 -20.3
154,478,538
203,704,292
Ninth Federal Reserve Di4 trict-Minn ea polls
3.704.978 -10.8
3,305.571
58,896.528 -18.7
47,881.673
M inneapolls._ _
17.939.630 -8.1
16,476,987
St. Paul
1,837.914 -14.2
1,576,268
N. Dak.-Fargo_
704.041 -20.3
561,246
S. D.-Aberdeen
436.744 -36.9
275,394
Mont.-Billings.
1.690,494
2,109.900 -19.9
Helena
7,505.260
81,303,522
22.369.437
1,908.097
952,017
663,974
3,164.247
6,605.517
114,632,423
26.718,816
2.157.659
1,406.111
967.066
3,900,000
Total(5 cities).
89.989,865
85.629.735 -16.2
117,866,554
156,587,592
Tenth Federal Reserve Ms Wet-Kens as City
189,302 -43.5
107.024
Neb.-Fremont__
217.516 -52.6
103.080
Hastings
2,552,721 -40.7
1.514,852
Lincoln
30,226,418 -32.1
20.512,325
Omaha
2,191,921 -37.5
1,368,943
Kan.-Topeka _
4,351,474 -22.2
3,384,910
Wichita
77,893.570 -22.5
60,398.868
Mo.-Kan. City.
3.125.996 -21.2
2.464.210
St. Joseph.._ _
873,807 -40.2
522,580
Col.-Col. Spas.
a
a
a
Denver
1,075,637 -48.0
558.910
Pueblo
194.089
363,683
3.049.224
39.859,585
2.578,317
5,795.859
107,929,042
4,761.697
987.136
a
1,342,428
319,518
510.652
3,134,015
47,789,358
3,976,275
7,455,889
147,134,225
6,643,951
1.239.883
a
1,666.005
122,698,362 -25.9
166.861,060
219,869,721
las-57.7
-22.9
-25.4
+1.9
-15.8
1,529,843
44.108.573
9.371,243
3,149.000
4,981.254
2.269,479
67.901,537
13.697.794
6.797,000
6,547,554
50.518,832 -22.7
63,139,913
97;213,364
Total(7 cities) _
Total (10 cities)
71,767.633
90,935,702
Eleventh Fede ral Reserve District-Da
1,468.658
621.108
Texas-Austin...
37.504,188
28,907,761
Dallas
6,480,407
4,836,643
Fort Worth...
2,316,000
2,359,000
Galveston
2.749,579
2,314,630
La.-Shreveport_
Total(5 cities).
39,039,242
Twelfth Feder at Reserve D strict-San Franc, sco-35.628,714
28.739.528 --24.6
21,665,256
Wash.-Seattle_ _
8,832,000 --35.9 .11.055,000
5,662,000
Spokane
1,125,633
821,025 --40.1
492,122
Yakima
32.055,167
25,325,854 --33.2
16.925,152
Ore.-Portland..
16.330,216
12,908.189 --31.6
8,834,311
Utah-S. L. City
6,520,233
4,869,186 --45.6
2,640,679
Callf.-L.Beach_
Los Angeles. _ No longer will report clearin gs.
4,403,667
4,008,239 --38.6
2,461,954
Pasadena
6.391.425
10,881,181 --21.6
8,531,462
Sacramento__ _
4,025,531
3,670.278 --36.7
2,323,963
San Diego_ _ _ _
San Francisco. 107,310,275 140.492,656 --23.6 170,503,771
2,824,502
2,496,786 --36.9
1,575,777
San Jose
1,606,584
1,498,101 --44.5
£31,792
Santa Barbara.
1,859,620
1,600.35 --51.9
770.494
Santa Monica.
1,784,000
1.480.000 --18.4
1,208.097
Stockton
53.862,473
14,524,000
2,001.993
42,045,571
21,312,983
8,305,961
5.530.462
6,890.232
6,796.906
220,689.400
3,879.286
1,626,460
1,848.556
2.486,500
Total(14 cities) 181,233,334 247,623,381 -26.8 296,094.063 390,800.783
Grand total (118
4 416,627,151 7,866,003,980 -43.9 9,511,931,637 14937977.068
cities)
Outside New York 1.661 623.363 2.5v3 7,3 363 -36.7 3.3410 500999 4.4e5.900.264
Week Ended Sept. 22.
CIeo.rings at
1932.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William....
New Westminster
Medicine Hat
Peterborough.-Sherbrooke
Kitchener
Windsor
Prince Albert. _ _ _
Moncton
Kingston
Chatham
Sarnia
Sudbury
$
71,612,700
79,514,837
45,367,738
12,054,335
4,208,678
3,564,388
1,917,996
3,944,879
5,088,893
1,428.243
1,358,791
2,505.558
3,798.600
4.516,648
391,538
355,410
1,617,999
732,341
698,750
602,755
418,436
217,293
554,526
544,3371
892,419
2,142,747
261,762
591,230
598,969
369,284
386,003
420,850
Inc. or
Dec.
1931.
,....14,0.0.4.-,00..N0.4.4.4.00.-4,3...+04,...400NOWNO.
Week Ended Sept. 24 1932
Inc. or
Dec.
1931.
1932.
mom=
co4.00olownoomwo.ca5cee
141
0
1.
72Wolo"....12Vt.Wv.V01
4.
C.14.
000fp =WWX=c00,0.—,
30OWNO-J -40...4 .=
,
.4-4NO......
SUMMARY OF BANK CLEARINGS.
Week Ended Sept. 24.
Clearings at
W4..70.0
0.
.WWW.WWW 01.
W
COO 0'00 40
00...WCY.W.p.W04.
....20...WW&OWMCOA..ONOWC
at this center recording a loss of 47.8%. We group the
cities according to the Federal Reserve districts in which
they are located, and from this it appears that in the New
York Reserve District, including this city, the totals show
a contraction of 47.6%, in the Boston Reserve District of
46.8% and in the Philadelphia Reserve District of 35.0%.
In the Cleveland Reserve District, the totals are smaller
by 40.2%, in the Richmond Reserve District by 32.4% and
in the Atlanta Reserve District by 21.8%. The Chicago
Reserve District suffers a loss of 43.8%, the St. Louis Reserve District of 20.3% and the Minneapolis Reserve District of 16.2%. In the Kansas City Reserve District, the
decrease is 25.9%, in the Dallas Reserve District 22.7% and
in the San Francisto Reserve District 26.8%.
In the following we furnish a summary of Federal Reserve
districts:
Canada
2285
Financial Chronicle
Volume 135
1930.
1929.
$
$
%
-28.4 108,035,300 146,322,144
-7.9 111.196,032 138,406.794
81,145,470
59,075,916
+6.2
25,460.467
23.956.573
-49.0
7,164,655
6,322,486
-25.7
6.932,124
5.650,168
-21.4
3,413,257
3,945,359
-27.8
7,082,988
5,648.118
-13.6
16,489,288
+1.58,985,311
2,331,983
2,345,451
-38.3
2,730,459
1,334,195
-15.9
3,733,591
2.935,383
+8.6
6,489,386
4,892,833
-5.0
6,947,942
+29.6
6,500,435
715,138
566,917
-3.4
943,780
525,871
+0.2
2,858,977
2,456,597
+0.7
1,446,505
1,169,904
-16.4
1,334,351
964,436
-17.6
1,057.755
807.905
+1.3
1,048,112
861,837
-13.6
636.138
357,770
-26.3
1,045,637
916,234
-31.0
1,006,092
720,176
-32.2
1,350,573
1,158,444
-3.4
5,076.482
3,104,791
-7.7
497.994
542,571
-17.9
916.262
700,000
-16.7
929,808
809,951
-12.7
627,449
554.190
-5.0
928,135
700,000
-0.7
1,028.889
-32.1
Tntml (22 eitifsi) 247 522 123 261 04.5 661 -122 3116.765.043 477.069.736
a No longerreporta weekly clearings. b Clearing house nos functioning at present.
C Cleaeng house reopened in February. d Figures smaller due to merger of two
largest banks. a Due to merger of two leading banks, this figure represents the
exchango of checks between fewer institutions. C Only one bank Orlon. No Weerflgurea available. • Estimated.
2286
Financial Chronicle
Oct. 1 1932
THE CURB EXCHANGE.
THE ENGLISH GOLD AND SILVER MARKETS.
Movements of the Curb Exchange displayed considerable
We reprint the following from the weekly circular of
irregularity during most of the present week. Trading has Samuel Montagu & Co. of London, written under date of
been slow, and the net changes have generally been within Sept. 14 1932:
narrow limits. On Saturday the market closed below the
The Bank of England gold res
Ger
OveDigainst notes amounted to £139.on the 7th inst., as compared with £138.906,143 on the previous
peak levels of the day, and while there were some moderate 031.386
Wednesday.
The purchase of £260.797 bar gold was announced by the Bank on the
gains scattered through the list, most of the prominent
8th inst.
stocks were off at the close. Electric Bond & Share was in
Substantial amounts of gold were available In the open market and were
for the U. S. A., the Continent and for destinations not disclosed,
good demand, but had to absorb considerable realizing and taken
although in one of the latter instances the buyer was the Bank of England,
closed with a gain of about 3 points. Aluminum Co. of their purchase being indicated above.
Quotations during the week:
Americafluctuated widely and while public utilities improved,
Per Fine
Equivalent Value of
£ Sterling.
the gains were not especially noteworthy. Little or no in- Sept. 8
1175. lid.
14s. 4.9d.
Sept.
9
terest was manifested in the oil shares. Trading was quiet on Sept. 10
118s. 2d.
14s. 4.56.
1175. 11d.
145. 4.9d.
Monday, and while the list showed some gains in the early Sept. 12
118s.
14s. 4.8d,
Sept. 13
118s. 4d.
14s. 4.3d.
dealings, most of these were wiped out under the increased Sept. 14
118s. 3d.
145. 4.4d.
118s. 1.2d.
14s. 4.6d.
liquidation that came into the market as the day progressed. Average
Last week-end afforded a striking instance of the rapidity with which gold
Public utilities were weak and moved downward under slight can be handled in the London market. A large shipment of unrefined gold
India was received by the refiners in London mid-day on Friday last:
pressure. Occasional rallies from the extreme lows were in from
the operation of refining was completed early on the Saturday morning
and gold to the value of 1350,000 was packed and dispatched to Southampevidence from time to time, but these had little effect on the ton
in time for shipment by steamship Aquitania,
trend of the market. Some of the more popular issues had two in the afternoon of that day for New York. which sailed at half-past
The following were the United Kingdom imports and exports of gold
wide swings, Aluminum Co. of America,for instance, slipped registered from mid-day on the 5th inst. to mid-day on the 12th inst.:
Imports.
back quite sharply closing with a loss of nearly 6 points on British South Africa
Exports.
£1,276,394 France
£2,118,021
the day. Oil shares were mixed, with Gulf Oil of Pennsyl- British India
954.751 Italy
221.985
Netherlands
173,135 Netherlands
135,075
vania off nearly 2 points on the day.
Straits Settlements and
United States of America 704,290
Dependencies
55,695 Belgium
Curb prices were slightly higher on Tuesday, short cover- Itaq
11,000
14.335 Switzerland
8.500
5.842 Other countries
ing being a strong factor in checking the recessions that Other countries
2,762
started early in the day. Buying centered largely around
£2,480,152
£3,201,633
The returns of the gold production of the Transvaal for the month
the public utilities, Electric Bond & Share leading the ad- August
of
1932 show yet another monthly record, the output
the month
vance followed by some of the more active of the utilities amounting to 991.322 fine ounces. This compared withfor
981,160 fine
ounces for July 1932, which was the highest previously recorded,
while
like American Gas & Electric, Niagara Hudson Power, the output for August 1931 was 916,425 fine ounces.
Nearly £1,400,000 of gold was shipped from Bombay last week. The
Commonwealth Edison and National Power & Light. In- steamship
Kaisar-l-Hind carries about 1520,000 consigned to London and
£43,000 to Amsterdam, the steamship Clan MacIver has about
dustrial changes were mixed, Dow Chemical moving up consigned
£165,000
to London, while the steamship President Pierce carries £642.000
23 points followed by Aluminum Co. of America which consigned to New York.
SILVER.
improved 2 points. On the other hand, Stutz, Atlantic &
The market has been poorly supported during the past week and offerfrom India, China and America met with little resistance: the tendency
Pacific Tea Co. and a number of other prominent stocks ings
was decidedly weaker in consequence and, although the reaction
from the
were under pressure and moved sharply downward. Oils high prices recorded last week was not unforeseen, the actual fall
to the
were practically neglected and moved fractionally lower. level of 1734d. and 174d. reached yesterday for cash and two
months'
delivery, respectively, was rather more than expected. Just as the recent
Chief interest was centered around the public utilities group rise
proved too rapid, the decline seen during the period under review also
on Wednesday, several volatile issues like General Public proved underdone, the low prices attracting buyers with the result that
a
Service pref., Columbia Gas & Electric cony. and Cities recovery to 17 15-16d. and 18d. for the respective deliveries ensued to-day.
Service showing modest gains on the day. The volume of While it is possible that prices may continue to fluctuate, the market should
trading was small and the movements were generally narrow. be steady at about to-day's level.
The following were the United K ngdom imports and exports of
The curb list dragged irregularly lower following early firm- registered
silver
from mid-day on the 5th inst. to mid-day on the 12th inst.:
ness on Thursday. Some efforts were made toward the end
Imports.
of the session to rally the market but they proved futile.
Exports.
£31,871 British India
£35,133
The weak stocks among the industrials included Aluminum Belgium
Germany
24.920 Germany
1,757
Mexico
Co. of America, Babcock & Wilcox, A. 0. Smith and St.
29.000 France
15.456 French Possessions 1 n 2.579
Regis Paper pref. Oil shares were dull and practically Canada
British India
7,568
India
1,500
France
unchanged.
10.899 Straits Settlements
1.700
Australia
6,475 Other countries
On Friday the curb list swung around within a narrow Other
4,011
countries
7,466
range. Most of the popular favorites were lower and the
£133,655
tickers were, at times, almost at a standstill. Numerous
.C46,680
Quotations during the week:
wide declines were recorded particularly in the industrial
LONDON.
IN
IN
NEW
YORK.
section among such stocks as Aluminum Co. of America,
Bar Silver, per Oz. Standard.
(Cents per Ounce,.999 Fine.)
Parker Rust Proof and Atlantic & Pacific Tea. Co. Utilities
Cash Deliv. 2 Mos. Deliv.
Sept. 8___183.gcl.
1834d.
Sept. 7
were generally lower and oil shares showed little or no ac- Sept.
2834
9___l8 1-16d.
18 3-I6d.
Sept. 8
28 11-16
tivity. The principal changes for the week were on the side Sept. 10-183(d.
Sept. 9
184d.
28
7-16
Sept. 12-1834d.
1830.
Sept. 10
of the decline and included such prominent issues as Alu- Sept.
2834
13-175id.
Sept. 12
173id.
283i
minum Co. of America, 72 to 67 8; Amer. Gas & Elec., Sept. 14-17
15-16d.
18d.
Sept. 13
28
3 to 333.; Amer. Light & Traction, 22 to 213.';
-_18.062d.
18.177d.
35%
Amer. Average..
The highest rate of exchange on New York recorded during the
Superpower, 63/i to 6%; Associated Gas & Elec. A, 3%
period
to 3; Atlas Corp. 9% to 8%; Brazil Traction & Light, 105.4 from the 8th inst. to the 14th inst. was $3.503( and the lowest $3.4734.
to 9%; Central States
'
Elec., 43/i to 33%; Cities Service, 43'
INDIAN CURRENCY RETURNS.
to 33/8; Consolidated Gas of Baltimore, 67 to 643/2; Cord
(In Lacs of Rupees)
Sept. 7.
Aug. 31.
Aug. 22.
Corp., 6 to 53.'; Electric Bond & Share, 35%
7 to 34; Ford of Notes in circulation
17520
17558
17497
coin and bullion in India
11466
Canada A, 103/i to 83/2; Gulf Oil of Pa. 34% to 33; Hudson Silver
11502
11484
Gold coin and bullion in India
1111
1111
1098
Bay Mining, 3% to 33%; International
'Petroleum,
to Securities (Indian Government)
4943
4945
4915
3 to 33; Niagara Hudson103/
103%; New Jersey Zinc, 33%
The stocks in Shanghai on the 10th Inst. showed no change as
Power,
compared
16% to 16; Parker Rust Proof, 39 to 36; Pennroad Corp., with the previous week.
33% to 3; Phoenix Securities, % to %
3 ; A. 0. Smith, 35 to
303'; Standard Oil of Ind., 22% to 21; Swift & Co., Ill% to
PRICES ON PARIS BOURSE.
9%; United Founders,2% to 2; United Gas Corp., 3%
3 to 3
Quotations of representative stocks on the Paris Bourse
United Light & Power A, 73% to 63', and Utility Power,
3% to 2%.
as received by cable each day of the past week have been
as follows:
DAILY TRANSACTIONS AT
THE NEW YORK CURB EXCHANGE.
Wax Ended
Sept. 30 1932.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Stocks
(Number
of
Shares).
Bonds (Par Palm).
Foreign
Foreign
Domettte. Government. Corporate.
Total.
128,397 $2,504,000
204,999 3,175.000
155,799 3,040.000
151,879 3,265.000
147,109 3,744,000
157,754 3,059,000
$87.000
208.000
162,000
129.000
159.000
144,000
$51,000 $2,642.000
159,000 3,542.000
148,000 3,350 000
129,000 3,523.000
183,000 4,086.000
135,000 3,338,000
945,937 $18,787,000
$889,000
$805,000 820,481,000
Week Ended Sept. 80.
Sales at
New York Curb
Exchange.
1932.
1931.
Jan. Ito Sept. 30.
1932.
1931.
Stocks-No.of shares..
945,937
2,874,618
Bonds.
$18,787,000 $23,130.000
Domestic
889.000
Foreign Government_
761.000
805.000
1,070,000
Foreign Corporate_ _
45,498,477
87,297,541
$654,515,100
24,674,000
48.638,000
$694,943.000
22,674,000
30,484.000
520.481.000 $24,961,000
6727.827.100
5748.101,000 •
Total
Sept.24 Sept. 26 Sept. 27 Sept.28 Sept.29 Sept.
30
1932. 1932. 1932. 1932. 1932. 1932.
Franca. Francs. Francs. Francs, Francs. Prams,
Bank of V-ance
11,700 12,000 12,000 12,200 12,200
Banque de Parts et Pays Bas....,.
1,590 1,630 1,610 1,640 1,620
Basqued'Union Parisierine.
465
461
449.
459
Canadian P.,einc
435
442
430,
456
437
Canal d • Sues
14,410 14,490 14.350 14,610
Cie Mitt d'Electricite
2.180 2,195 2,160 2,180
Cie Generale d'E ectricite
2,170 2,190 2,190, 2,240 2,260
Cie Generale Transatiantique76
71
70
72
Citroen B
518
512
492,
504
Comptoir National d'Escompte1,150 1,160 1,160 1,190
1,5015
Coty Inc
210
210
210
210
220
Connives
384
EGLI376
375
375
Credit Commercial de France- DAY.
728
728
710
719
Credit Fonder de France
4,610 4,650 4,610 4,720 4.7730
Credit Lyonnais
2,040 2,090 2.060 2,110
Distribution d'Electricite Is Par
2,150 2,180 2,160 2,190 2,100
Eaux Lyonnaises
2,330 2,360 2,360 2.390 2,180
2,390
Energle Electrique du Nord _ _ _
661
668
655
655
Energie Electrique du Littoral _
1,011
1.003
996
1.009
French Line
72
72
70
71
Gaieties letayette
88
191
Gas Le Bon
780
780
"iio
790
790
Kuhlmann
480
480
480
500
500
L'Air Liouide
770
810
800
820
820
Mines de Courriares
370
370
370
370
380
2287
Financial Chronicle
Volume 135
Sept.24 Sept.26 Sept.27-Sept.28 Sept. 29 Sept. 30
1932.
1932. 1932. 1932.
. 1932.
Francs. Francs. Francs. Francs. Francs. Francs.
470
470
470
470
460
1,570
1,520 1,520
1,510
1.490
1,011
1,020
1,021
1,021
1.210 1-,210
1,190
1,140 1,140
104
104
III
111
1:370
1,340
1,280
1.280
1,220
82.70 83.40 83.70 83.90 84.10
123.60 124.00 123.80 123.90 123.30
97.70 98.60 98.60 98.60 98.80
100.90 100.90 100.90 100.90 100.70
101.80 102.10 102.20 102.00 101.90
1,890
1,690
1,660
1,660
1.660
HOLI
_1,830
1,830
1,852
1.860
DAY.
1,289
1,270
1,290
1.310
510
490
500
500
118
120
117
118
194
192
192
192
2,390 2,390
2,465 2,365
619
615
615
615
14,600 14,600 14.300 14.500
185
171
181
180
860
850
840
gTs
850
220
.82.So 80.05 70:00 8-1-.00
First we give the receipts at Western lake and river ports
for the week ending last Saturday and since Aug. 1 for
each of the last three years:
THE BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange resumed trading on Friday,
April 29 1932 after having been closed by Government decree
since Sept. 18 1931. Prices suffered heavy declines. Closing
prices of representative stocks as received by cable each day
of the past week have been as follows:
Since Aug.12,944,0001 91,529,000 34,720.000 36.178,000 3,418,00010,767.000
1932
3,956,000 116.784,000 22.337.000 21,995,000 1.296.000 9,947.000
1931
3.947.000164.984,000 38.670.000 42.871.000 10.023 000 20.404.000
1930
Mined de Lens
Nord Ry
Orleans Ry
Paris, France
Pathe Capital
PechineY
Rentes 3%
Rentes 5% 1920
Rentes 4% 1917
Rentes 5% 1915
Rentes 6% 1920
Royal Dutch
Saint Cobalt) C. & C
Schneider & Cie
Societe Andre Citroen
Societe FrancaLse Ford
Societe Generale Fonclere
Societe Lyonnalse
Societe Marsellialse
Suez
Tubize Artificial Silk. pref
Union d'Electricite
Union des Mines
Wagon-Llts
Sept. Sept. Sept. Sept. Sept.
28. 29.
27.
26.
24.
Per Cent of Par
128
127
127
127
Relchsbank (12%)
92
91
92
92
Berliner Elandels-Gesellschaft (4%)
53
53
53
54
Commerz-und-Privat Bank A. G.(0%).--75
75
75
75
Deutsche Bank und Diaconto-Gen.(0%)62
62 - 62
62
Dresdner Bank (0%)
31
33
33
33
Aligemeine Elektrisitaets Gee.(AEG) (0%)
73
74
73
Roll- 74
Gesfuerel (4%)
128
135
134
day 135
Siemens & Raisin)(9%)
99
100 101
101
I. G. Parbenindustrie (7%)
173 171
173 171
Salzdethfurth(9%)
173 172 173
174
Rhelnische Braunkohle (10%)
74
75
75
76
Deutsche Erdoel(4%)
54
56
55
56
Mannesmann Roehren (0%)
17
18
18
18
IlaPag (0%)
18
19
18
18
North German Lloyd (0%,
Sept.
80.
128
91
53
75
62
32
73
122
98
171
173
75
55
17
18
In the following we also give New York quotations for
German and other foreign unlisted dollar bonds as of Sept.30:
kw.
Ask.
Anbalt 7e to 1948
Argentine 5%. 1945, $100-pieces
Antioquta 8%, 1948
Bank of Colombia 7%. 1947
Bank of Colombia 7%,1948
Bavaria 814a to 1945
Bavarian Palatinate Cons. Cit. 7% to 1945
Bogota (Colombia) 634%, 1947
Boliv1a 6%, 1940
Brandenburg Electric 6%, 1953
Brazil Funding 5%, 1931-1951
British Hungarian Bank 7 lie. 1962
Brown Coal Ind. Corp.64s. 1953
Call (Colombia) 7%, 1947
Callao (Peru) 734%, 1944
Ceara (Brazil) 8%. 1947
City Savings Rank. Budapest. 78, 1953
Dortmund Municipal 1>111. 634%, 1948
Dulsberg 7%. to 1945
Dusseldorf 78, to 1945
East Prussian Power 8%, 1953
European Mortgage & Investment 748, 1966
French Government 514s, 1937
French National Mall EIS. Line 6%, 1952
Frankfurt 7e, to 1945
German Atlantic Cable 7%. 1945
German Building & Landbank 634%. 1948
Hamburg-American Line 6%e, to 1940
Hanover liars Water Work8 6%. 1957
Housing & Realty Imp. 78. 1946
Hungarian Central Mutual 7s. 1937
Hungarian Discount & Exchange Bank 711. 1963
Hungarian Italian Bank 74%. 1932
Koholyt 61.40, 1943
Land Mortgage Hank, Warsaw,8%. 1941
Leipzig Overland Power 614%, 1946
Leipzig Trade Fair 7s, 1953
Luneberg Power, LIght & Water 7%. 1948
Mannheim & Palatinate is, 1941
Munich 7a. to 1945
Municipal Bank.Hessen, 7%. to 1945
Municipal
Elec. Corp., Recklinghausen, 71, 1947
Nassau Landbank 6)4%, 1938
National Central Sayings Bank of Hungary 7148. 1962
National Hungarian dr Ind. Mtge. 7%, 1948
Oberpfalz Electric 7%. 1946
Oldenburg-Free State 7%. to 1945
Pomerania Electric 8%. 1953
Porto Alegre 7%, 1968
Protestant Church (Germany) 78, 1946
Provincial Bank of Westphalia 6%. 1933
Rhine Westphalia Electric 7%, 1936
Roman Catholic Church 634%. 1946
Roman Catholic Church Welfare 7%, 1946
Saarbrueeken Mortgage Bank
Salvador 7%, 1957
Santa Catharine (Brazil) 8%. 1947
Santander (Colombia) 7%, 1948
Sao Paulo (Brazil) 6%. 1947
Saxon State Mortgage 8%. 1947
Siemens & HaIrke debentures 6%. 2930
South American Railways 6%. 1933
Stettin Public Utilities 7%, 1948
City 78. 1951
Vamma Water 5ti%. 1957
Vesten Electric Railway 7%, 1947
Wurtemberg 78. to 1945
Gash
68. 1947
TUQUE88/1
36
55
22
2634
2634
47
35
116
1 5K
514
28
133
50
18
...f 7
J 24
f29
35
35
36
43
13634
37
584
46
4834
354
46
136
f244
17334
4334
52
3144
36
40
464
48
35
36
644
f3734
.08
44
35
43
147,%
5514
53
6034
47
1
1114
1 334
113
1 RH
5434
320
:2;i15
8114
3444
49
41
60
25
2834
2814
50
40
18
iiii
32
35
52
11,
-Si-40
4414
ii%
42
6034
iiii
384
49
88
3034
iiii
55
534
3734
43
5134
52
40
41
am
341.4
2944
49
40
45
I234
5734
gL4
49
21
534
16
1034
5934
350
11;3 31
18
(16 34
873.4
54
Flat price.
goutuurcialand glasceilatteonsnews
Breadstuffs figures brought from page 2361.-Al1
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.
Receipts atChicago
Minneapolis. _
Duluth
Milwaukee_ __
Toledo
Detroit
Indianapolis_ _
St. Louis_ _
Peoria
Kansas City...
Omaha
St. Joseph_ _
Wichita
Sioux City._.
Buffalo
Total wk. '32
Same wk. '31
Same wk. '30
Flour.
Wheat. I
Rye.
Oats.
Corn.
I Barite.
bls.1961bs bush.60 lbs.'bush. 56 lb*.bush. 32153.bush.481bs.bush.561b3.
350.000
309.000 1,801,000
208,000
514,000 142.000 488.000
2,762.000312,000
63,000 263,000
61.000
3,287,000
183.000
1.000
37.000
148.000
179.000
9.000
2.000
2,000
248.000
26.000
214.000
20,000
10,000
20.000
2,000
38,000
234,000
29,000
189.000
32.000
5.0001
175.000
142.000
382.000
134.000
34,000
2,000
28.000
232.000
8,000
35.000
34,000
135.000
160,000
19,000
46.000
163,000
230.000
26.000
34.000
40,000
2,000
3.000
227,000
6,000
1,000
8.000
48,000
4,463,000
144,000 302,000
906.000
405.000 12.376,000
526,000 9,535.000
471,000 11,512.000
4.101,000
2.788.000
3,135.000
1,918.000 531.000 1.086,000
1,816.000 416.000 1.049.000
2,170,000 1,104.000 2,618.000
Total recaipts cf flour and grain at the seaboard ports for
the week ending Saturday, Sept. 24 follows:
Receipts at- I Flour. I
Wheat.
Corn.
1
Oats.
1
Rye.
I Barley.
bble.1961bs'bush.60183.bush.56 lbs. bush. 32 lbs.'bush.48lbs.bush561bs..
74,000
21,000
582,000
l45.000
New York_._
I
254,000
Portland. Me_
I
8,000
89,000
33,000,
Philadelphia
1,000
1,000
13,000
8,000
12,000,
Baltimore....
I
45,000
Mobile
42,000
51,000
75.000
39,000
New Orleans*
1
133,000
Galveston-30,000 125,000
202.000
37,000, 2,777,000
Montreal_
4,000
1.000
25,000
Boston
1
916,000
I
Sorel
I
3,000,
Halifax
I
268,0001
Churchill_
I
31.000 126,030
330.000'
86,000
Total wk. '32 294.0001 5,147,000;
Since Jan.1'3211,826,000 109,600.0001, 4,424,000 7,200.00010,855.000 6,882.000
15.000
8,000
338.000'
68.000
Week 1931_ _ _I 422,000 3,766.000
Since Jan.1'31 15,152,000131,176,000' 2.306,000 9,137,000 2,096,00020,928,000
• Recelpts do not Include grain passing through New Orleans for foreign ports
on through bills of lading.
National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
CHARTERS ISSUED.
Capital.
Sept. 24-The Hamilton National Bank of Johnson City, Tenn._ 3250,000
President: W.E. Tomlinson. Cashier: T. W. Roland.
Will succeed The Unaka and City National Bank of
Johnson City, Tenn.
VOLUNTARY LIQUIDATIONS.
625.000
Sept. 19-City National Bank of San Francisco, Calif
Effective Aug. 11 1932. Lig. Agent: L. R. Arnold,care
of the liquidating bank.
Absorbed by Pacific National Bank of San Francisco.
60.000
Sept. 19-The First National Bank of Mannington, W.Va
Effective Aug. 17 1932. Liq. Agent: Frank W.Bowers,
Mannington, W. Va.
Succeeded by First Exchange Bank,Mannington, W.Va.
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 & Son, New York:
$ per Bli.
$ per Sh. Shares. Stocks.
Mares. Stocks.
1 Republican Club of the Adironclacks, Inc. (N. Y.), par $250:
10 Nat. Horse Show Assn. of
American, Ltd., no par: 3,000
Saguenay Pulp & Power Co.
$17 lot
(Quebec), corn., Par $5
250 Golden Bear Cookie Co., Inc.
1
(N. Y.), par $100
44,644 Garland 88. Corp.(in llquldation), common, par $3.. _51,000 lot
10 Williamaburgh Agency, Inc.,
$310 lot
par $50
.500 National Cornstalk Processes,
$250 lot
Inc., no par
5,000 Clnecolor Co. of America,
$50 lot
Inc., common, no par
1,000 Dubiller Condenser Corp.,
$575 lot
common, par $1
1,386 Seacrest Laundry, Inc., com.,
$75 lot
class A, no par
1,114 Seacrest Laundry,Inc., pref.,
$200 lot
par $50
-I
3,410 Metropolitan Sewing Machine
44
Corp., par $100
Per Cent.
Bonds.
$10,000 Central Ry. Term. & Cold
Storage Co., Inc., 634% 1st
(closed) M. s. I. gold loan, due
April 11952; Oct. 1929 and subs.
$200 lot
coupons attached
$10,000 Grand Trunk KY. Term. &
Cold Storage Co. 1st (closed) M.
634% 8. f. gold bonds, due April 1
1952: Oct. 1929 and subsequent
$200 lot
coupons attached
$267,000 Atlantic Fruit & Sugar Co.
lst M.7% gold bds.,,er. A.513.350 lot
$110,000 Phosphate Mining Co. let
& ref. M.6% gold bonds, sex. C:
$60,000 lot
Aug. 1 1935
By R. L. Day & Co., Boston:
$ per Sh.
Shares. Stocks.
999 Nat. Fireworks. Inc., corn.;
1,000 Nat. Fireworks, Inc.. pref.,
par $100;500 Nat.Fireworks Distributing Co.. corn., par $100;
.50 Virginia Fireworks Co., Inc..
par $100; 100 Georgia Fireworks
Co., Atlanta. Ga.. par $100; 100
Texas Fireworks Co., Dallas.,
Tex.. par $100
$10,000 lot
z13
50 U.S. Trust Co., Boston
100 Central Trust Co., Cambridge,
par 510
50c
3834
2 Pepperell Mfg. Co.. par MOLL
2 West Point Mfg. Co., Dar $100.... 3534
17
40 Arlington Mills
$ per Sh.
Shares. Stocks.
12 Naumkeag Steam Cotton Co.,
z474
par $100
50 Bangor Hydro-Elec. Co., corn.,
25
Par 525
200 Magazine Repeating Razor
$2 lot
Co., class 13
sog
1 DennL•on Mtg. Co. 7% pref
44 New England Pr. Co., pref_z95, 95.94
ze
50 Draper Corp
Per Cent.
Bonds.
$1.000 Oklahoma Gas & Elec. 6s,
804
March 1940, series A
$1.000 New Scollay Building Trust
314
1st M.448, March 1934
x Ex-dlyidend.
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
$perSh.
20 First Camden National Bank 42
Tr. Co.,Camden, N.J., par $25_ 434
15 Fire Association of Philadelphia,
28
par $10 (new)
10 John B. Stetson Co., common,
no par
20
10 Hamilton Loan Society of Pa.,
Inc., preferred
Per Sh
Shares. Stocks.
10 Integrity Trust Co., Pat $1018
Per Cent.
Bonds.
$200 U. S. Liberty Loan 4345,
102
1933-38
$600 Second Bond & Mtge. premises
215 Mannion Ave., Moorestown,
N. J. (subject to a first mtge. of
100
$2,400)
2288
Financial Chronicle
Oct. 1
1932
By A. J. Wright & Co., Buffalo:
Shares. Stocks.
10 The Como Mines, par $1
$ per Sh.l Shares. Stocks.
14e 20 Zenda Gold Mines, par $1
$ per Sh.
16c
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Cherry Burrell Corp., pref.(au.)
$134 Nov. 1 Holders of rec. Oct. 15
DIVIDENDS.
Chicago Gulf Corp., class A (qual.)_._. 1234c Oct. 1 Holders of rec. Sept.
23
Theatre Corp. (guar.)
Oct. 1 Holders of me. Sept. 20
$1
Dividends are grouped in two separate tables. In the Circle
Colgate-Palmolive-Peet Co.. corn.(qu.)_
250. Oct. 20 Holders of rec. Oct. 10
first we bring together all the dividends announced the Commonwealth Life Ins. (Ky.)(guar.). 40e. Oct. 1 Holders of rec. Sept.27
Commerce Investments,
(guar.).- 10c. Oct. 1 Holders of rec. Sept. 23
current week. Then we follow with a second table, in Consolidated Royalty OilInc.
Co
Sc. Oct. 25 Holders of me. Oct. 15
Continental Gin.6% pref.(guar.)
1% Oct. 1 Holders of rec. Sept. 22
which we show the dividends previously announced, but Debenhams.
Ltd.. 10% cum. p1. city. omi(ted.
Diversified Trustee Shares.ser.B (s.-a.). 27.2e. Oct. 1 Holders of rec. Sept. 15
which have not yet been paid.
Dravo Corp.,6% pref.(guar.)
75c. Oct. 1 Holders of rec. Sept. 29
Eagle Lock Co.(quar.)
The dividends announced this week are:
50c. Oct. 1 Holders of rec. Sept. 22
Eastern Dairies. Ltd.. pref.(guar.)
151 Oct. 15 Holders of rec. Sept. 30
Egry Register Co.,cl. A (guar.)
50e. Oct. 1 Holders of rec. Sept. 15
Elder Mfg. Co.. class A (guar.)
Per
When
Books Closed
$131 Oct. 1 Holders of rec. Sept. 20
Name of Company.
1st preferred (quar.)
Cent. Payable.
Days Inclusive.
$2
Oct. 1 Holders of me. Sept. 20
Eureka Pipe Line Co.(guar.)
Nov. 1 Holders of rec. Oct. 15
$1
Railroads (Steam).
Fairmont Creamery Co., corn.(quar.)._
2.50. Oct. 1 Holders of rec. Sept. 20
Cincinnati Sandusky & ClevelandPreferred (guar.)
$151 Oct.' Holders of rec. Sept. 20
Preferred (s.-a.)
Federal American Co., 6% pref. (quar.) 115 Oct. 1 Holders of roe. Sept. 26
$134 Nov. 1 Holders of rec. Oct. 25
Elizabeth & Trenton, pref. (5.-a.)
.5134 Oct. 1 Holders of rec. Sept.20
Common (quar.)
15e. Oct. 1 Holders of rec. Sept.26
Norfolk & Western. adj. Pref.(guar.).- $1
Fiberloid Corp., pref. (qua:.)
Nov. 19 Holders of roe. Oct. 31
$13.1 Oct. 1 Holders of me. Sept. 21
St. L01113 Rocky Mt.dr Pacific corn. dr pf. dry. o mitted.
Finance & Trading Corp..7% Pt.(qu.).. 11( Oct. 1 Holders of rec. Sept. 23
York Rya., preferred (guar.)
Fireman's
6234c. Oct. 31 Holders of rec. Oct. 20
Fund Ins.(quar.)
75c. Oct. 15 Holders of rec. Oct. 5
First National Corp. of Portland (Ore.)
Public Utilities.
class A (guar.)
250. Oct. 15 Holders of rec. Sept. 25
Amer.Cities Pow.& Lt.Corp.el. A (qu.) o7513. Nov. 1 Holders of roe. Oct. 5
Food Mach. Corp., $614 pref.(monthly) 50c. Oct. 15 Holders of rec. Oct. 10
American Light & Traction Co.
4634 Preferred (monthly)
50c. Nov. 15 Holders of rec. Nov. 10
Common (guar.)
62%c. Nov. 1 Holders of rec. Oct. 140
$634 Preferred (monthly)
$I
Dee. 15 Holders of rec. Dec. 10
Preferred (guar.)
134 Nov. 1 Holders of rec. Oct. 140 Foulds Milling. pref. (guar.)
$2
Oct. 10 Holders of rec. Sept. 30
Associated Gas & Elec., $7 pref. (5.-a.) $334 Oct. 1 Holders of rec. Sept. 20
Four Wheel Drive Auto Co.(s-a)
$3 Oct. 1 Holders of rec. Sept.26
$334 original preferred (s.-a.)
Friehofer(Wm.)Baking 7% 1810.(qu.) 134 Oct. 1 Holders of roe. Sept.20'
5134 Oct. 1 Holders of roe. Sept. 20
5634 cum,preference-Dividend o mitt ed.
Fruehauf Troller. pref.(guar.)
87340. Oct. 1 Holders of roe. Sept. 20
$6 cum. pref.-Div. omitted.
Gannett Co., Inc., $6 prof.(guar.)
$1% Oct. 1 Holders of rec. Sept.15
Bell Tel. of Penn.. corn. (guar.)
General Foods Corp. (guar.)
$2 Sept.30 Holders of me. Sept.30
50c. Nov. 1 Holders of rec. Oct. 14
British Columbia Elec.Pow.& Gas., Ltd
General Stockyards Corp., corn.(guar.). 75c. Nov. 1 Holders of rec. Oct.
17
6% preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 20
:6
Preferred (quar.)
Nov. 1 Holders of rec. Oct. 17
$134
Central Hudson Gas & Elec. Corp.(111.) 20e. Nov. 1 Holders of rec. Sept.30
Georgia RR.& Banking Co.(qua:.).... $2% Oct. 15 Holders of roe.
Oct. 1
6% preferred (guar.)
Gold Dust Corp., common (guar.)
134 Nov. 1 Holders of rec. Sept. 30
40c. Nov. 1 Holders of rec. Oct. 10
Central Kansas Power. 7% pref. (au.)... 134 Oct. 15
Granite Gold Mine (guar.)
lc. Oct. 1 Holders of rec. Sept. 23
6% preferred (guar.)
134 Oct. 15
Grangers Mfg., 7% pref.-Dividend orni tied.
Chesapeake dr Potomac Telephone Co.
Gray dr Dud Co., Prof.(guar.)
Oct. 1 Holders of rec. Sept. 26
$1%
Preferred (guar.)
Guarantee Co. N.J.. cl. A & B (quar.)
$134 Oct. 15 Holders of roe. Sept.30
100. Oct. 1 Holders of rec. Sept. 22
Cincinnati Street Ry. Co.(guar.)
25c. Oct. 1 Holders of roe. Sept. 28
Guarantee Co.of Nor. Amer., corn.(qu.) 8134 Oct. 15 Holders of rec. Sept. 30
Commonwealth Tel.(Wis.). prof.(guar.) $134 Oct. 15 Holders of rec. Sept.30
Common (extra)
6234 Oct. 15 Holders of roe. Sept. 30
Dayton Pow.& Lt.. pref.(monthly)___. 50c. Nov. 1 Holders of roe. Oct. 20
Harbauer Co., 7% pref.(guar.)
134 Oct. 1 Holders of roe. Sept. 21
Gt. Lakes Transit 7% prof.(guar.)
Harbison-Walker Reinke. Co., pf. (qu.). 1% Oct. 20 Holders of rec. Oct. 10
$1
Oct. 1 Holders of roe. Sept.28
Hamburg Electric Co.
Hartford Steam Boiler Insp.& Ins.(nu.) 400. Oct. 1 Holders of rec. Sept.28
(American dep. rec, common bearer). zro834 Oct. 13 Holders of rec. Oct. 5
Houghton Eievstor & Mach.,1st pf.(q11.) 41% Oct. 1
Harrisburg Gas. pref.(guar.)
$134 Oct. 15 Holders of rec. Sept.30
Hawaiian Commercial & Sugar Co., Ltd.
Hartford Elec. Light (guar.)
(Monthly)
6831e. Nov. 1 Holders of rec. Oct. 15
25e. Oct. 15 Holders of rec. Sept. 23 I
Haverhill Gas Light Co. (guar.)
56e. Oct. I Holders of rec. Sept. 27
Hercules Powder Co., pref. (guar.)
$134 Nov. 15 Holders of rec. Nov. 14 I
Illinois Corn.Telep.. pref.(guar.)
Hershey Chocolate Corp., corn.
$134 Oct. 15 Holders of rec. Sept.30
Nov. 15 Holders of rec. Oct. 25
$114
(guar.).
Illinois Northern Utilities Co.
Convertible preferred (guar.)
Nov.15 Holders of rec. Oct. 25
$1
6% preferred (quar.)
134 Nov. 1 Holders of ree. Oct. 15
Highland Diary, Ltd.. 7% pref.(guar.). 134 Oct. 1 Holders of roe. Sept. 28
$7 junior preferred (guar.)
Horn & Hardart Co.(N. Y.), corn.(OW 6234e. Nov. 1 Holders of rec. Oct. 10
$134 Nov. 1 Holders of rec. Oct. 15
Lawrence Gas & Elec. (guar.)
900 Oct. 13 Holders of roe. Sept. 20
Imperial Life Assurance(qar.)
$3% Oct. 1 Holders of rec. Sept.30
Lexington Telep. Co.,634% pref.(guar.) 131 Oct. 15 Holders of rec. Sept.30
International Mining Cop. Initial
7%c Nov. 1 Holders of rec. Oct. 1
Lynn Gas & Electric (guar.)
$134 Sept.30 Holders of roe. Sept.26
Internat. Printing Ink Corp., pref. (qu.) $1% Nov. 1 Holders of rec. Oct,
15
Maine Gas Cos., COM.(guar.)
50c. Oct. 15 Holders of tee. Oct. 1
International Pulp Co., 7% pref.(guar.) 134 Oct. 1 Holders of rec. Sept. 15
Preferred (Misr.)
Johnson Publishing Co., pref.(qual.)... $2
$111 Oct. 15 Holders of roe. Oct. 1
Oct. I Holders of rec. Sept. 23
Middle States Telep. Co.(III.). Pl. (qu.) $131 Oct. 1 Holders of roe. Sept. 23
Kress(S. H.)& Co.. common (qual.)... 250. Nov. 1 Holders
of rec. Oct.
Milwaukee Elec. Ry.dr Light Co.
Com.(extra payable In special pref.stk) J50c Nov. 1 Holders of rec. Oct. 10
10
6% preferred (quar.)
134 Oct. 31 Holders of roe. Oct. 20
Special preferred (guar.)
15e. Nov. 1 Holders of rec. Oct. 10
6% preferred (qual.)
134 Dec. 1 Holders of roe. Nov. 15
Laclede Steel Co. (guar.)
15e
Sept.
30
Holders
of
rec.
Sept.
24
Minneapolis Gas Lt.,5% port units,(flu) 131 Oct. 1 Holders of roe. Sept. 20
Lane Bryant, Inc., 7% prof. (Qum.).
11.1 Nov. 1 Holders of rec. Oct. 15
Mt. Vernon Telep. Co.(Ohio)
Lefcourt Realty Corp.. no action
taken o n corn. and pre ferred dividends.
7% preferred (guar.)
Life Insurance Co. of Virginia (qual.).. 750 Oct. 1 Holders of rec.
134 Oct. 1 Holders of roe. Sept. 20
Sept. 26
Mutual Telep.(Hawaii)(monthly)
80 Oct. 20 Holders of roe. Oct. 10
Loomis Bayles Mutual Fund (quar.).50c Oct. 1 Holders of rec. Sept. 20
New Bedford Gas& Edison Light(au.)-75o Oct. 15 Holders of roe. Sept.26
Lowell Elec. Light (guar.)
90c
Oct.
13
Holders
of
rec.
Oct.
North Amer. Edison Co., $6 pref. (au.) $134 Dec. 1 Holders of rec. Nov.15
Manufacturers Casualty Ins. initial_ _ 373.4e. Oct. 3 Holders of reo. Oct. 7
1
Northern States Power (Del.) cl. B (qu.)
15o Nov. 1 Holders of roe. Sept.30
Marquette Cement Mfg.,6% pref. (qu.) 134 Oct. 1 Holders of me. Sept.30
Ohio Associated Telep. Co.. pref.(guar.) 35c Oct. 1 Holders of rec. Sept.20
Maryland Commercial Bankers.-Prefer red die Mend o mined.
Ohio Telephone Service. pref.(guar.)... 134 Oct. 1 Holders of roe. Sept. 24
Masback Hardware Co., let pf.(qua:.). $114 Oct. 15 Holders of rec. Sept.
30
Pacific Lighting Corp., corn.(guar.)._
McCrory Stores Corp., pref.(qua:.).... $1% Nov. 1 Holders of rec.
75o Nov.14 Holders of roe. Oct. 20
Oct. 20
Philadelphia Elec., $5 pref. (quar.)...
$134 Nov. 1 Holders of roe. Oct. 10
Merchants Ice dr Cold Storage Co.
Public Service Co. of OklahomaPreferred (guar.)
1% Oct. I Holders of rec. Sept. 20
7% preferred ((Wan)
194 Oct. 1 Holders of rec. Sept. 20
Merchants Refrigerating Co.. N. Y.
6% preferred (quar.)
134 Oct. 1 Holders of rec. Sept. 20
Common (guar.)
500. Sent.30 Holders of rec. Sept. 23
Ridge Ave. Passenger Ry. (guar.)
Oct. 1 Holders of rec. Sept. 15
$3
Preferred (guar.)
$1% Nov. 1 Holders of rec. Oct. 22
San Antonio Public Service.8% pt.(au.) 2
Sept.30 Holders of rec. Sept.20
Mohawk Investment Corp. (guar.).30c. Oct. 15 Holders of me. Sept. 30
7% preferred (guar.)
134 Sept.30 Holders of rec. Sept. 20
Moock Electric Co., Prof. (guar.)
4134 Oct. 1 Holders of rec. Sept.20
Ban Diego Consolidated Gas & Elec. Co.
Morris Plan Co. of N. Y
300. Oct. 1 Holders of rec. Sept. 28
Preferred (guar.)
134 Oct. 15 Holders of rec. Sept. 80
Moxie Co.. class A '(qar.)
750. Sent.30 Holders of rec. Sept.26
Sharon Ry. Co.(semi-annual)
$131 Oct. 1 Holders of rec. Sept. 24
National Carbon Co., pref. (qual.).
Nov. 1 Holders of rec. Oct. 21)
$2
Southern Calif. Gas Corp.$634 pf.(qu.). $134 Nov.30 Holders of roe. Oct. 31
National Equity Co., Inc., pref. (guar.) 20c. Oct. 1 Holders of rec.
Sept. 23
Southern Canada Power Co., Ltd.
National Fuel Gas, corn. (quar.)
25e. Oct. 15 Holders of rec. Sept. 30
Common (guar.)
25c Nov. 15 Holders of rec. Oct. 31
National Share (Del.), class A (qual.).. 43340. Oct. 10 Holders of rec. Sept. 30
Southern Counties Gas Co. of Calif.Extra
61413. Oct. 10 Holders of rec. Sept. 30
6% preferred (guar.)
134 Oct. 15 Holders of roe. Sept.30
Nelson (Wm.) Ltd.. pref. (guar.)
8134 Sent.30 Holders of rec. Sept.23
Southern New England Telep. Co.(qu.) $2
New Departure Mfg. Co.. prof.
Oct. 15 Holders of rec. Sept. 30
Oct. 1 Holders of rec. Sept. 20
$134
(guar.).
Stamford Gas & Elec. Co. (guar.)
$234 Oct. 15 Holders of rec. Sent. 30
New Jersey Zinc Co (guar.)
1500. Nov.1 Holders of rec. Oct. 20
Seaboard Public Service. $6 and s331 pt.-Dlvi dead 0 mitted.
North & Judd Mfg. Co
25o.
Sept.
30 Holders of rec. Sept. 16
Union Public Service. common (guar.)._ UM Oct. 1 Holden,of rec. Sept. 20
Nutley Mtge. & Trust Guarantee (qu.). $134 Oct. 1 Holders of rec.
Sept.28
7% preferred A (guar.)
134 Oct. 1 Holders of rec. Sept. 20
Ohio Finance Co., common (guar.)
50o. Oct. 1 Holders of rec. Sept. 10
7% preferred B (guar.)
134 Oct. 1 Holders of rec. Sept. 20
8% preferred
Oct. 1 Holders of rec. Sept. 10
2
$6 preferrred C (guar.)
Ohio Loan Co., Prof. (guar.)
$134 Oct. 1 Holders of rec. Sept. 20
$2
Oct.
I Holders of rec. Sept. 30
$6 preferred D (guar.)
$134 Oct. 1 Holders of rec. Sept. 20 Onomea Sugar Co.(monthly)
200. Oct. 20 Holders of rec. Oct. 10
Union Telephone Co.(guar.)
$2 Oct. 15 Holders of rec. Sept.30
Pacific Portland Cement, pref.(qual.).. $1% Oct. 5 Holders of rec.
Sept.30
7% preferred (guar.)
134 Oct. 15 Holders of rec. Sept.30
Pacific So'west Rlty, Co.634% pf.(gr.)_
154 Oct. 1 Holders of rec. Sept. 20
6% preferred ((War.)
134 Oct. 15 Holders of rec. Sept. 30
531% preferred (guar.)
1% Oct. 1 Holders of rec. Sept. 20
Virginia Public Service 6% pref. (guar.) 134 Oct. 1 Holders of rec. Sept. 27
Packer Corp. (guar.)
25c. Oct. 1 Holders of roe. Sept. 22
7% Preferred (guar.)
194 Oct. 1 Holders of rec. Sept. 27
Parke. Austin & Llpscombe, Inc.
West Texas Utilities Co.. $6 pref.(au.). 3134 Oct. 1 Holders of rec. Sept. 15
Preferred (guar.)
h25c. Oct. 15 Holders of roe. Oct. 1
Western Power Corp..7% cum.pref.(qu) lfi Oct. 1 Holders of rec. Sept. 26
Peck Bros. & Co.. pref.(guar.)
37%0. Oct. 10 Holders of rec. Sept. 30
Penberthy Inspector(guar.)
$214
Sept.30 Holders of rec. Sept.
Banks & Trust Companies.
Penman's, Ltd., common (guar.)
760. Nov. 15 Holders of rec. Nov.26
5
Brooklyn Trust Co.(guar./
234 Oct. 1 Holders of rec. Sept.24
Preferred (guar.)
134 Nov. 1 Holders of rec. Oct. 21
Continental Bank & Tr. Co.(N.Y.)(au) 300: Oct. 1 Holders of rec. Sept. 20
Penn-Mex Fuel Co.. special
$5.18 Oct. 1 Holders of rec. Sept. 29
Peoples National Bank (Wklyn„)(au.)
Oct. 1 Holders of rec. Sept. 27
$2
Plymouth Cordage Co., corn.(qua:.)...
Oct. 20 Holders of rec. Sept. 30
Reliable Stores, 1st pref.-Dividend pas sed.
Fire Insurance.
Rice Ranch 011, common (quar.)
1340. Oct. 1 Holders of rec. Sept. 26
Niagara Fire Ins. Co. (guar.)
Oct. 4 Holders of rec. Sept. 20
$1
Rich Ice Cream Co.. Inc.(quan)
50c. Nov. 1 Holders of rec. Oct. 15
Westchester Fire Insurance (guar.)
2541 Nov. 1 Holders of rec. Oct. 21
Ritter Dental Mfg. Co.. pref.(quar.)
$134 Oct. 1 Holders of rec. Sept. 27
St. Croix Paper Co.,corn..(guar.)
$1% Oct. 15 Holders of rec. Oct. 5
Miscellaneous.
St.Joseph Stockyards,corn..(guar.)
$1 Sept. 30 Holders of rec. Sept. 20
Ajax Oil& Gas Co., Ltd.(quar.)
3
Oct. 15 Holders of rec. Sept.30
St. Paul Union Stockyards(guar.)
750. Oct. 1 Holders of rec. Sept. 20
Allied Chemical & Dye Corp., com.(qu .) $134 Nov. 1 Holders of rec. Oct. 11
Ban Diego Ice dr Cold Storage cl A (qu.). 300. Oct. 1 Holders of
rec. Sept. 28
American Can Co., COM.(guar.)
$1
Nov.15 Holders of rec. Oct. 310 Scranton Life Ins. (annual)
25e.
Oct. 1 Holders rec. Sept. 15
American Dairies, Inc.(Md.), pref.(au.) 8131 Oct. 1 Holders of roe. Sent. 15
Second Twin Bell Oil Synd.(monthly).. 200. Oct. 5 Holders of
of
rec.
30
American Electric Securities. pref
h25c. Nov. 1 Holders of roe. Oct. 20
Seeman Bros., Inc
623413. Nov. 1 Holders of rec. Sept.
Oct. 15
American Factors, Ltd. (monthly)
100. Oct. 10 Holders of rec. Sept.30
Shaffer Stores Co., 7% pref. (guar.).
134 Oct. 1
American Home Prod. Corp.(monthly) 35e, Nov. 1 Holders of roe. Oct. 14a Sharp & Dohme,Inc.,
cony. pf. al A (qu) 50c. Nov. 1 Holders of rec. Oct. 17
American Ice Co.,corn.(guar.)
25e. Oct. 25 Holders of roe. Oct. 7
Sheaffor (W.A.) Pen, pre.(guar.)
82
Oct. 20 Holders of rec. Sept. 30
Preferred (qual.)
8134 Oct. 25 Holders of roe. Oct. 7
Short Term Trust Shares
5.51c. Oct. 1
American Investment Co.01 111., pf.(qu) 4334e. Oct. 1 Holders of roe. Sept. 20
Smyth Mfg. Co. (guar.)
50c.
Oct.
1 Holders of rec. Sept. 23
Andale Co.. pref. (guar.)
$131 Oct. 2 Holders of roe. Sept.30
Sonoco Prod. Co.. Prof.(guar.)
82
Oct. 1 Holders of rec. Sept. 20
Autoiine Oil Co. of Balt.. 8% Pref.(qu.) 20e. Oct. 1 Holders of rec. Sept. 23
Sparks Withington Co., pref. (guar.)._ $134 Oct. 1 Holders
of rec. Sept. 28
Chemical
pref.
lot
T.)
(guar.)
3131
Baker (J.
Sent.30 Holders of rec. Sept. 16
Preferrred (guar.)
8134 Dec. 15 Holders of ree. Doe. 8
Baldwin Co.,6% pref.(quar.)
115 Oct. 15 Holders of rec. Sept. 110
Squibb (E. R.)& Sons,corn.(quar.).... 25e. Nov. 1 Holders of
rec. Oct. 15
Bankers Comml Security,6% pref.(m.) 134 Oct. 1 Holders of roe. Sept. 26
1st preferred (guar.)
81% Nov. 1 Holders of rec. Oct. 16
Belding Corticeill. Ltd.. corn. (guar.). - 4131 Nov. 1 Holders of roe. Oct. 15
Stahl-Meyer, Inc., pref.(guar.)
$134 Oct. 1 Holders of rec.
20
Bloomingdale Bros., Inc., pref. (guar.), 8134 Nov. 1 Holders of roe. Oct. 20
Standard National Corp., prof. (qual.). $134 Oct. 1 Holders of rec. Sept.
Sept. 28
sae Oct. 1 Holders of rec. Sept.15
Boots Pure Drug ord. reg
State Street Invest. Corp.(quar.)
500. Oct. 15 Holders of roe. Sept. 30
Amer.dep.rec. ord.roe
zw6 Oct. 8 Holders of rec. Sept.28
Stedman Rub. FL, pref.(guar.)
11%
Oct. 1 Holders of rec. Sept. 26
Bunker Hill de Sullivan Mining lc ConSuperheater Co.(guar.)
250. Oct. 15 Holders of rec. Oct. 5
centrating Co.. 6% pref.(guar.)
134 Oct. 5 Holders of rec. Sept.30
Superior Portland CementInc.Bcom.(qr.) 12%IL Oct. 20 Holders of rec. Sept.
16
cataraba Sugar Estates (guar.)
40e. 1-2-33 Holders of rec. Dee. 15
Class A (monthly)
27340. Nov. 1 Holders of rec.
22
35e. 1-2-33 Holders of rec. Dec. 15
Preferred (guar.)
Temple Bar Bldg. Co.,7% prof.(guar.). 134 Oct. 1 Holders of rec. Oct.
Sept.30
35e. 1-2-33 Holders of rec. Dec. 15
California Sugar Estate 7% pref.(qu.)..
Thatcher Mfg. Co., pref.(quar.)
90o Nov. 15 Holders of rec. Oct. 31
Name of Company.
Books Closed.
Days Inclusive.
Per
When
Cent. Payable.
Miscellaneous (Cone/Wed).
3734e. Sept.30
Time. Inc., common (guar.)
Common extra
1234c Sept. 30
IM Oct. 1
Towle Mfg. Co. (guar.)
15e. Oct. 1
Trust Fund Shares (quar.)
'Puckett Tobacco Co., Ltd., pref. (qu.)- 134 Oct. 15
Oct. 5
Twin Bell Oil Synd. (monthly)
$2
$134 Nov. 1
United Biscuit Co. of Amer., pref. (qr.)_
United Companies of N. J.(guar.)
$234 Oct. 10
United States Cold Storage, pref. (qu.). 3134 Oct. 1
10c. Nov. 1
United Verde Extension Mining Co.(qr.)
60c. Sept.30
Weedon dr Co.. common (guar.)
Westchester Service Corp.. $7 pref.(au.) 3134 Oct. 1
Westinghouse Elect. dr Mfg., pref.(qr.)_ 8734c. Oct. 31
25e. Sept.30
Woolson Spie Co.. corn (guar.)
$131 Sept. 30
6% Preferred (guar.)
5c. Oct. 1
Wolverine Tube Co., common (guar.).-
Name of Company.
Holders of rec. Sept. 24
Holders of rec. Sept. 241
Holders of rec. Sept. 24
Holders of rec. Sept. 30
Holders of rec. Sot.30
Holders of rec. Sept.30
Holders of rec. Oct. 17
Holders of rec. Sept. 20
Holders of rec. Sept. 26
Holders of rec. Oct. 6a
Holders of rec. Sept. 20
Holders of rec. Sept. 20
Holders of rec. Oct. 10
Holders of rec. Sept. 28
Holders of rec. Sept. 23
Holders of rec. Sept. 15
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week, these being given in the preceding table.
Name of Company
When
Cent. Payable.
Boots Closed.
Days Incinstse.
Railroads (Steam).
Oct. 1 Holders of roe. Sept. 8
3
Alabama & Vicksburg Ky.(8. a.)
234 Jan 5'118
Augusta & Savannah RR.(s-a)
250 Jan633
Extra
Bangor & Aroostook RR.Co.. Win.(66.) 600. Oat. 1 Holders of rec. Aug. 31a
Preferred (oust.)
1% Oct. 1 Holders of rec. Aug. 31.
50c Oct. 1 Holders of rec. Sept. 18
Beech Creek RR.(guar.)
750 Oct. 1 Holders of rec. Sept. 20
Belt RR.& Stockyards Co.corn.(qu.)
6% preferred (guar.)
75e. Oct. 1 Holders of rec. Sept. 20
Heston & Providence RR. Co.(guar.)3% Oct. 1 Holders of rec. Sept 250
Canadian Pacific fly Co.. pref (s
Oct. 1 Holders of rem. Sept I
-Carolina Clinchtield & Ohio(guar.)
1
Oct. 10 Holders of rec. Sept. 30
Stamped certificates (guar.)
151 Oct. 10 Holders of rec. Sept. 30
Chesapeake Corp. (quar.)
50e. Oct. 1 Holders of reo. Sept. 8
Chesapeake & Ohio Ry.
.Co..oom.(gU.)- 6211e. Oct. 1 Holders of roe. Sept. 8
314 1- 1-33 Holders of rec. Dee 8
Preferred (5 a)
$234 Oct. 1 Holders of rec. Sept. 150
Chicago Junction Ry. corn.(quar.)
$131 Oct. 1 Holders of rec. Sept. 15a
Preferred (guar.)
Cincinnati Union Term.5% Pref.(go.).. 1% Oct. 1 HolCers of rec. Sept. 19
Cleveland Cincinnati & Bt. LouisOct. 31 Holders of rec. Oct. 5
5% preferred (guar.)
Oct. 1 Holders of rec. Sept. 15
Dayton & Michigan RR.. Pref.(guar.)Oct. 1 Holders of rec. Sept. 15
Common semi-annual
Oct. 1 Holders of rec. Sept. 30
Dover & Rockaway RR.6% Ertd• (IL-A.)Oct. 1 Holders of rec. Sept. 20
European & North Amer. Ry.
Oct. 8 Holders of rec. Sept.22
Joliet & Chicago RR. Co.(guar.)
Oct. 1 Holders of rec. Sept. 30
Kansas City Southern Ky.. pref.(qu.)- Oct.
Holders of rec. Sept. 9
Lack. RR.Co. of N. J.4% gtd.(qua?.).
Holders of rec. Oct. 14
Nov.
Mahoning Coal RR.. Coln. (guar.)
Meadville Conneaut Lake dr LinesvIlle
2
Holders of tee. Sept. 15
(semi-annual)
Minn. St. Paul & 8.8. M.Ry. Co.
Holders of rec. Sept. 20
Oct.
2
4% leased line (semi-annual)
Holders of rec. Sept. 15
Oct.
New London Northern RR. (guar.)._
Holders of rec. Sept. 15
Oct.
N. Y. Lack. & West. Ry.(quar.)____
OCt. 1 Holders of roe. Sept 22
Newark & Bloomfield RR.(s.-a.)
Norwich & Worcester RR.. Pref. (guar.)
Oct. 1 Holders or rec. Sept. 16
Oct. 1 Holders of rec. Sept.26
Peterborough Hit. (semi-ann.)
Philadelphia & Trenton (guar.)
Oct. 10 Holders of rec. Oct. 1
Pittsburgh Bessemer & Lake Erie, corn..
Oct. 1 Holders of rec. Sept. 26
Common(5.-a.)
Oct. 1 Holders of rec. Sept. 15
Plttabg Ft. Wayne & Chic., corn.
Oct. 1 Holders of rec. Sept. 10
Common (guar.)
Jan 2'33 Holders of roe. Dec. 10
Oct. 4 Holders of rec. Sept. 10
Preferred (quar.)
Preferred (guar.)
Jan 3'33 Holders of rec. Dec .10
Reading Co., common (guar.)
Nov. 10 Holders of rec. Oct. 13
Second preferred (quar.)
Oct. 13 Holders of rec. Sept. 22
Southern By. Co -Mobile & Ohio stock
trust certificates (5.-a.)
Oct. 1 Holders of rec. Sept. 15
2
Union Pacific RR. Co.. corn.(goat.)... 1% Oct. 1 Holders of rec. Sept. la
Preferred (5-a)
Oct. 1 Holders of rec. Sept. la
2
United N. J.. RR. & Canal (guar.)-- 234 Oct. 10 Holders of rec. Sept. 20
Vermont dc Massachusetts (5.-a.)
3
Oct. 7 Holders of rec. Sept. 13
Vicksburg Shreveport & Pacific RY.(e.a.) 254 Oct. 1 Holders of rec. Sept. 8
Preferred s. a.)
234 Oct. 1 Holders of rec. Sept. 8
Warren RR.(N. J.) (semi-annual)
3% Oct. 15 Holders of rec. Oct. 6
Public Utilities. .
Alabama Power Co.,$7 pref.(quar.)
$6 preferred (guar.)
$5 preferred (quar.)
American District Teleg., corn. (guar.).
Preferred (guar.)
Amer. Gas & Elec. Co..corn.(guar.)._
Preferred (guar.)
American Power & Light $6 pref.(qu.).
35 preferred (quar.)
Amer.States Pub. Serv. Co.. $6 pf.(go)
Amer.Superpower Corp. let Pf.
American Telep. & Teleg.(guar.)
Amer. Water Works& Elec. Co.,'noCommon (quar.)
$6 let preferred (guar.)
Appalachian Elec. Power $7 Pref.(quaMI preferred (guar.)
Arkansas Power & Light Co.$7 pref.(gu)
$8 preferred (guar.)
Attleboro Gas Light Corp.(guar.)
Bangor Hydro-Elect. 7% Pref.(gust.)
6% preferred (guar.)
Battle Creek Gas $6 pref.(guar.)
Bell Telephone Co. of Can.. corn. (go.).
Bell Tel. of Penna.6%% Pref.(guar.).Binghamton Gas Works, 7% pref. (go.)
Binghamton Lt., lit. & Pow.$5 pf.(qu.)
$5 preferred ((uar.)
Birmingham Elec. Co. $7 Pref. (qear.).
$6 Preferred (guar.)
Boston Elevated Ry. cOm• (gust.)....
Brazilian Tree., Lt. & Pow. prod.(go.)._
Bridgeport Hydraulic (quar.)
British Columbia Power cl A (guar.).British Columbia Telep. Co..6% Pt.(go)
Brooklyn Borough Gas (quar.)
6% preferred (quar.)
6% preferred extra
Brooklyn-Manhattan Transit Corp.
Preferred series A ((lust.)
Brooklyn & Queens Transit Corp.
au preferred (guar.)
Brooklyn Union Gas (qua?.)
Buffalo. Niagara & Eastern Pow. Corp.
Preferred (quar.)
$$ preferred (quar.)
Cairo Water 7% pref.(guar.)
Cal. Elec. & Generating, 6% pref. (go.)
California-Oregon Power,7% pref.(qu.)
6% preferred (quar.)
6% preferrd. see. of 1027 )qua?._._..
Calgary Power Co., Ltd. corn.(quar.)..
Can. North,Pow.Corp., Ltd., corn.(go)
7% cum. preferred ((mar.)
Carolina Pow.& 1.t.. $7 pref.(quar.)_
$6 preferred (guar.)
Carolina Tel. & Tel (quar.)
2289
Financial Chronicle
Volume 135
3
Oct.
Oct.
Nov.
Oct. 1
Oct. 1
Oct.
Nov.
Oct. 1
Oct. 1
Oct. 1
Oct. 1
Oct. 15
Traders of rec. Sept. 15
Holders of tee. Sept. 15
Holders of rec. Oct. 15
Holders of rec. Sept. 15
Holders of rec. Sept. 15
Holders of rec. Sept. 14
Holders of rec. Oct. 8
Holders of rec. Sept. 9
Holders of rec. Sept. 9
Holders of rec. Sept. 28
Holders of rec. Sept. 1
Holders of rec. Sept. 2 a
Nov. 1
Oct. 1
Oct. 1
Oct. 1
Oct. 1
Oct. 1
Oct. 1
Oct. 1
Oct. 1
Oct. 1
Oct. 15
Oct. 15
Oct. 1
Dot. I
Oct. 1
Oct. I
Oct. 1
Oct. 1
Oct. 1
Oct. 15
Oct. 15
Oct. 1
Oct. 10
Oct. 1
Oct. 1
Holders of rec. Oct.
Holders of rec. Spet.
Holders of rec. Sept.
Holders of rec. Sept.
Holders of rec. Sept. 1
Holders of rec. Sept. 1
Holders of rec. Sept. 1
Holders of rec. Sept. 1
Holders of roe. Sept. 1
Holders of rec. Sept. 1
Holders of rec. Sept. 2
Holders of rec. Sept.2
Holders of rec. Sept.2
Holders of rec. Sept. 17
Holders of rec. Sept. 17
Holders of rec. Sept. 100
Holders of rec. Sept. 15
Holders of rec. Sept. 30
Holders of rec. Sept. 30
Holders of rec. Sept. 15
Holders of rec. Sept. 30
Holders of rec. Sept. 19
Holders of rec. Sept. 19
$134 Oct. 15 Holders of rec. Oct.
$111 Oct.
$134 Oct.
1
1 Holders of rec. Sept.15
1 Holders of rec. Sept. 1
4012) Oct. 1
$111 Nov. 1
144 Oct. 1
1% Oct. 1
114 Oct. 15
111 Oct. 15
131 Oct. 15
1% Oct.
120c Oct. 25
1% Oct. I
$14 Oct.
$114 Oct.
.2160e0ct.
Holders or rec. Sept. 15
Holders of rec. Oct. 15
Holders of rec. Sept. 20
Holders of rec. Sept. 8
Holders of rec. Sept. 30
Holders of rec. Sept. 30
Holders ol tee. Sept.30
Holders of tee. Sept. 15
Holders of rec. Sept. 30
Holders of rec. Sent. 30
Holders of rec. Sept. 19
Holders of rec. Sept. 19
Holders of roe. Sept.24
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Public Utilities (Con)fnued).
Central Illinois Light Co.8% pref.(qu.) 131 Oct. 1 Holders of rec. Sept. 15
7% preferred (quar.)
134 Oct. 1 Holders of rec. Sept. 15
Central III. Public Seri., pref.(quer.)-111 Oct. 15 Holders or rec. Sept. 20
6% preferred (guar.)
131 Oct. 1 Holders of rec. Sept. 20
Central Maine Pow.7% pref.(guar.)... 134 Oct. 1 Holders of rec. Sept. 10
144 Oct. 1 Holders of rec. Sept. 10
6% Preferred (guar.)
$8 preferred (guar.)
$1% Oct. 1 Holders of rec. Sept. 10
Cinc. Gas & El. Co.5% pf. A (qu.)
114 Oct. 1 Holders of rec. Sept. 15
Cinc., Newport & Covington Light &
Traction (quar.)
$114 Oct. 15 Holders of rec. Sept.30
3434 preferred (guar.)
1.1234 Oct. 15 Holders of rec. Sept.30
Cincinnati & Sub. Bell Tel. Co.(guar.)-2
- _ 311.11 Oct. 1 Holders of rec. Sept.20
Citizens Passenger Hy. (Philadelphia)... 3334 Oct. 1 Holders of roe. Sept. 20
Citizens Water Co.(Pa.) (guar.)
3134 Oct. 1 Holders of roe. Sept. 20
Cleveland Elec. Ilium. Co.corn.(guar.).
40c. Oct. 1 Holders qf rec. Sept.20
Preferred (guar.)
$1% Dec. 1 Holders of rec. Nov.15
Cleveland RI
,
.(guar.)
$114 Oct. 1 Holders of roe. Sept. 25
Clinton Water Works 7% prof.(quar.)
134 Oct. 15 Holders of rec. Oct. 1
Commonwealth kr Southern Corp.$6 preferred (guar.)
Holders of rec. Sept. 9
$131 Oct.
Commonwealth Utilities, Pref. A (CLUJ- 3134 Oct.
Holders of rec. Sept. 15
Preferred B (guar.)
Holders of ree. Sept. 16
3134 Oct.
Preferred C (guar.)
Holders of roe. Nov. 15
$134 Dec.
Connecticut Elec. Serv. Co., corn. (qtr.)
75e Oct.
Holders of rec. Sept. 15
Consol. Gas., Elec. Lt. & Pow .(Balt.)900. Oct. 1 Holders of rec. Sept. 15
Common (quar.)
Preferred A (guar.)
$14 Oct. 1 Holders of rec. Sept. 15
Preferred D (qua?.)
$13.4 Oct. 1 Holders of rec. Sept. 15
Preferred E (guar.)
$146 Oct. 1 Holders of rec. Sept. 15
Commonwealth Water & Light CO.
36 preferred (quar.)
3134 Oct. 1 Holders of rec. Sept. 20
$134 Oct. 1 Holders of rec. Sept. 20
$7 Preferred (guar.)
Consolidated Gas(N. Y.). 5% Pt.(go.) 134 Nov. 1 Holders of rec. Sept. 30
Consumers Gas of Toronto (guar.)
3234 Oct. 1 Holders of rec. Sept. 15
Consumers Power Co.,$5 pref.(guar.).134 Oct. 1 Holders of rec. Sept .15
6% preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 15
8.6% preferred (guar.)
1.65 Oct. 1 Holders of rec. Sept. 15
114 Oct. 1 Holders of rec. Sept. 15
7% preferred (monthly)
50o. Oct. 1 Holders of tee. Aug. 15
8% preferred (monthly)
65e. Oct. 1 Holders of rec. Sept. 15
8.6% preferred (monthly)
Continental Gas & El. Corp.,corn.(gu.) $1.10 Oct. 1 Holders of rec. Sept. 120
$1.80 Oct. 1 Holders of rec. Sept. 12a
Common extra)
114 Oct. 1 Holders of rec. Sept. 120
7% preferred (guar-)
50c Oct. 1 Holders of rec. Sept. 20
Dayton Power & Light 6% Pt.(mthly.).
Detroit Edison Co.. cap. stock (guar.). $111 Oct. 15 Holders of rec. Sept. 20
Diamond State Tel.Co.6%% Pf.(q11.) - 134 Oct. 15 Holders of rec. Sept. 20
1% Oct. 1 Holders of rec. Sept. 15
Duke PowerCo.
quaro
common (qua?.).)
1% Oct. 1 Holders of rec. Sept. 15
Preferred
Duquesne Light Co.5% let pref.(guar.) 134 Oct. 15 Holders of rec. Sept. 15
111 Oct. 1 Holders of rec. Sept. 150
Eastern Gas & Fuel Assoc.6% pf.
4 3i% prior preferred (qua?.)
134 Oct. I Holders of rec. Sept. 150
Eastern New Jersey Power 6% pf.(11IL). 111 Oct. 1 Holders of rec. Sept. 1
134 Oct. 15 Holders of rec. Sept.3
El Paso Elec.. 7% pref. (guar.)
El Paso Elec. Co. (Del.). $8 pt. H (011.). $134 Oct. 15 Holders of rec. Sept.3
Electric Bond & Share CO..corn.(guar.)- 11 34 Oct. 15 Holders of rec. Sept.
$104 Nov. 1 Holders of rec. Oct.
$8 preferred (guar.)
$14 Nov. 1 Holders of rec. Oct.
$5 preferred (guar.)
Electric Pow.& Light Cour..37 Dr.(qu.) 3134 Oct. 1 Holders of rec. Sept.
$131 Oct. 1 Holders of rec. Sept.
$8 preferred (guar.)
Oct. 1 Holders of rec. Sept.26
$1
Elizabethtown Consildted Gas Co
Empire Power Corp.. $6 pref. (guar.)._ $134 Oct. I Holders of rec. Sept 16
Engineers Pub.Serv. Co.,$8 pref.((NJ_ 3194 Oct. 1 Holders of rec. Sept. 194
$134 Oct. 1 Holders of rec. Sept. 194
$545 preferred (guar.)
$134 Oct. 1 Holders of rec. Sept. 194
$5 preferred (guar.)
134 Nov. 1 Holders of rec. Oct. 27
Escanaba(Mich.)P & Tr.,6% pt.(qu.).
50e Oct. 1 Holders of rec. Sept. 15
Fall River Electric Light (qua?.)
25c Oct. 1 Holders of rec. Sept. 20a
Federal Lt.& Traction Co.. corn.(go.)..
Oct. 1 Holders of rec Sept 200
Common (payable in corn,stock)
ft
Florida Pow.& I.t. Co.. pref.(qua?.)... $114 Oct. 1 Holders of rec. Sept. 20
Foreign Light dc Power $8 pref.(guar.).- $114 Oct. 1 Holders of roe. Sept.20
Frankford & Southwark Phila. Pass. Ry.
Co.(guar.)(sub,to receipt of rentals)_ $431 Oct. 1 Holders of rec. Sept. 1
Gas Securities Co. common (monthly).. g% of1 Oct. 1 Holders of rec. Sept. 15
50c Oct. 1 Holders of rec. Sept. 15
Preferred (monthly)
General Gas & Elec. Corp.,$7 pf. A (go.) Oil% Oct. 1 Holders of tee. Sept. 9
Oct. I Holders of roe. Sept. 0
$5 preferred A
532
$134 Oct. 1 Holders of rec. Sept.15
Gamuts Power Co. $6 pref. (Wier.)
$6 preferred (quar.)
$114 Oct. 1 Holders of rec. Sept.15
111 Oct. 1 Holders of rec. Sept.30
Gold & Stock Telegraph (guar.)
50e Oct. 1 Holders of rec. Sept. 19
Gray Telep. Pay Station (guar.)
1% Oct. 1 Holders of rec. Sept. 6
Gt. Western Power (Cal.) 7% pf.(1111.)
1% Oct. 1 Holders of rec. Sept. 6
6% preferred ((mar.)
111 Oct. 1 Holders of rec. Sept.20
Greenwich Water 6% Pref. (guar.)
$131 Oct. 1 Holders of rec. Sept.20
Gulf Power Co..$6 Pref.(guar.)
831 Oct.
Hamburg Electric Co., bearer shares
834 Oct. 16
5
Amer. dep. reta. for bearer shares
Illinois Power Co..6% pref.(guar.).... 1)4 Oct. 1 Holders of rec. Sept.15
1,4 Oct. I Holders of rec. Sept. 15
7% preferred (guar.)
Illinois Power & Lt.Co.6% prof.(qu.).. 1;4 Oct. 1 Holders of rec. Sept. 10
8194 Nov. 1 Holders of rec. Oct. 10
$6 Preferred (qua?.)
Illinois Traction Co.,6% pref. (quar.).. 134 Oct. 1 Holders of rea. Sept.20
Indiana & Mich. Elec. CO.7% pf.(gr.). 1)4 Oct. 1 Holders of rec. Sept. 6
134 Oct. 1 Holders of rec. Sept. 6
6% preferred (guar.)
Indianapolis Pow.& Lt.6% pref.(au.). 134 Oct. 1 Holders of rec. Sept. 6
144 Oct. 1 Holders of rec. Sept. 6
84% preferred (guar.)
Indianapolis Water Co..6% prof.(go.). 14 Oct. 1 Holders of rec. Sept. 12
8731c. Oct. 16 Holders of rec. Sept.2114
Internet. Hydro-Elec. pref.(guar.)
$114 Oct. 1 Holders of rec. Sept.30
International Ocean Teleg. (quar.)
1234e Oct. 1 Holders of rec. Sept. 23a
Internat. Superpower Corp.. corn.
1211c. Oct. 1 Holders of rec. Sept.23
Certificates of dep.(guar.)
$1% Nov. 1 Holders of rec. Oct. 154
International Utilities. $7 pref.(go.)
8714c Nov. 1 Holders of rec. Oct. 16a
$314 Preferred (guar.)
43%c Oct. 15 Holders of rec. Oct. la
Si 34 Preferred (quar.)
Interstate Power Co. $8 pref. (gust.).. $131 Oct. 1 Holders of rec. Sept. 15
$1% Oct. 1 Holders of rec. Sept. 15
$7 preferred (guar.)
Iowa Power & Light 7% pref.(goat.)... 1% Oct. 1 Holders of rec. Sept. 15
111 Oct. 1 Holders of rec. Sept. 15
8% preferred (quar.)
Iowa Public Serv. Corp.. $7 1st pt.(go.) $1% Oct. 1 Holders of rec. Sept. 15
$1% Oct. 1 Holders of rec. Sept. 15
$84 1st preferred (qua?.)
$6 1st preferred (guar.)
$1% Oct. 1 Holders of rec. Sept. 15
$7 2nd preferred (qua?.)
$114 Oct. 1 Holders of rec. Sept. 15
25c. Oct. 1 Holders of rec. Sept. 19
Jamaica Public Service, Ltd., corn. 0111.1
$1% Oct. 1 Holders of rec. Sept. 19
Preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 10
Jersey Central P.& L
% pref.(go.)..
134 Oct. 1 Holders of rec. Sept.10
1% Oct. 1 Holders of rec. see,.10
6
7%
%P
preferrrerl(
1366r
uar.
.)
)
Joplin Water Works Co.6% pref.(guar.) 134 Oct. 15 Holders of reo. Oct. 1
Kan.City Pr. & Lt. Co.el. B pt.(go.).. $134 Oct. 1 Holders of ree. Sept. 14
Kansas Electric Power 7% pref. (quar.)_
1% Oct. 1 Holders of rec. Sept. 15
111 Oct. 1 Holders of rec. Sept. 15
6% Preferred ((luar.)
Kansas Gas A, Elec. Co.. 7% PT.(qua?,). 114 Oct. 1 Holders of rec. Sept.23
$111 Oct. 1 Holders of rec. Sept. 23
$6 preferred (quar.).
Kansas Power & Light 7% pref.(qua?.). 1% Oct. 1 Holders of rec. scot. 20
6% preferred (quar.)
134 Oct. 1 Holders of rec. Sept. 20
Kansas Utilities Co.,7% Pref.(qua?,)... 1% Oct. 1 Holders of rec. Sept.20
Kentucky Utilities. 13% pref. (qua?,)... 111 Oct. 15 Holders of rec. Sept. 26
Kings Co. Lighting Co., corn,(gust.).. $134 Oct. 1 Holders of rec. Sept. 19
Oct. 1 Holders of rec. Sept. 19
7% preferred (quar.)
6% preferred (quar.)
114 Oct. 1 Holders of rec. Sept. 19
5% preferred (guar.)
114 Oct. 1 Holders of rec. Sept. 19
Lake Erie Pow. & Lt., 7% 1st pref.(qu.) 1% Oct. 1 Holders of rec. Sept. 24
6% 2nd preferred (quar.)
134 Oct. 1 Holders of rec. Sept.24
Long Island Lighting Co.
7% series A preferred (quar.)
154 Oct. 1 Holders of rec. Sept. 16
8% series B preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 16
Louisiana Pr. & Lt. Co.$6 pref.(guar.).. $144 dNov.2 Holders of rec. Oct. 15
lsvlirerle
effrr
G
eert
ai&:agEuu
ii
lec
ar...1
.Co.(KY.)Lo67ua
115i Oct. 15 Holders of rec. Sept.30
145 Oct. 15 Holders of rec. Sept.30
13' Oct. 15 Holders of rec. SrPt.30
5% preferred (guar.)
$134 Oct. 1 Holders of rec. Sept.20
Marion Water pref.(guar.)
Financial Chronicle
2290
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Company.
Oct. I 1932
Per
When
Cent. Payable.
Books Closed.
Days Inclusiee.
Public Utilities. (Continued).
Public Utilities (Concluded).
Manchester Gas Co.(guar.)
$2
Oct. 1 Holders of rec. Sept. 20
Ridge Ore. Pass, Ry. Co.(Phila.), (qu.) $3
Oct. 1 Holders of roe. Sept. 15
Preferred (guar.)
Richmond Water Works 6% pf.(qu.)...
UN Oct. 1 Holders of rec. Sept. 20
1 Holders of rect. Sept.20
Oct.134
Maritime Tel. a: Tel. Co., 7% p1. (qu.) 1134o Oct. 1 Holders of reo. Sept. 15
Rochester Cent'l Pow.6% pref.(qua:.).
134 Oct. 1 Holders of rec. Sept. 15
I 1200.Oct. 1 Holders of recs. Sept. 15
(Quarterly)
Rochester Telephone Corp. (guar.).
$134
Oct.
1
Holders of roe. Sept. 20
Massachusetts Lighting Cos.
614% preferred (guar.)
114 Oct. 1 Ho'ders of roe. Sept.20
$8 preferred (guar.)
$2
Oct. 15 Holders of rec. Sept.30
St. Joseph Hy_ Lt.. Ht. dc Pr. pf.(qu.)_ $tg Oct. 1 Holders of rec. Sept. 15
$6 preferred (guar.)
SI% Oct. 15 Holders of rec. Sept. 30
Savannah El. & Pow. Co.,6% Pf.(a-a)3 Oct. 1 Holders of rec. Sept. 2
Massachusetts Utility Assoc.. pref.(qu.) 62340 Oct. 15 Holders of rec. Sept. 30
8% preferred A (guar.)
2
Oct. 1 Holders of roe. Sept. 2
Memphis Natural Gas Co. Sip!.(1211.)-- $134 Oct. 1 Holders of rec. Sept. 20
715% preferred B (quar.)
134 Oct. 1 Holders of roe. Sept. 2
Memphis Pow. dc Lt. Co..$7 Pf. Mara $134 Oct. 1 Holders of roe. Sept. 17
7% preferred C (guar.)
131 Oct. 1 Holders of rec. Sept. 2
$134 Oct. 1 Holders of rec. Sept. 17
$6 preferred (quar.)
634% preferred D (guar.)
154 Oct. 1 Holders of roe. Sept. 2
Metropolitan Edison CO.87 Pref.(q11.)-- 8134 Oct. 1 Holders of rec. Aug. 31
Scranton Elec. 86 pref.(guar.)
$134 Oct. 1 Holders of rec. Sept. 6
Second & 3d Ste. (Phila.) Pan.B.y.(011.) $3 Oct. I Holders of rec. Sept. 1
$134 Oct. 1 Holders of rec. Aug. 31
$6 preferred (guar.)
$5 Preferred (quar.)
Sedalia Water Corp.(guar.)
5134 Oct. 1 Holders of rec. Aug. 31
$134 Oct. 15 Holders of rec. Oct. 1
Michigan El. Pow.7% pref. Mari-- 134 Oct. 1 Holders of rec. Sept. 15
Shasta Water class A (guar.)
37350 Oct. 1 Holders of rec. Sept. 30
6% preferred (guar.)
South Carolina Power Co.$6 pref. (qr.). SI% Oct. 1 Holders of roe. Sept. 15
134 Oct. 1 Holders of rec. Sept. 15
Michigan Pub. Sere. Co.7% pref.(qu.). 134 Oct. 1 Holders of rec. Sept. 15
South Pitts. Water Co.6% pf.(qu.).... 134 Oct. 15 Holders of rec. Oct. 1
6% preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 15
preferred
7%
(quar.)
154 Oct. 5 Holders of rec. Oct. 1
6% prior preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 15
Southern & Atlantic Teleg. (s.-a.)
623Ic Oct. 1 Holders of rec. Sept. Is
Minnesota Pow.& Lt.,7% pref.(quar.)_
134 Oct. 1 Holders of rec. Sept. 15
So. Cal. Edison Co., Ltd. orig. of.(qu.).
50e. Oct. I Holders of roe. Sept.20
$6 preferred (guar.)
5 t5% series C pref. (quar.)
8134 Oct. 1 Holders of rec. Sept. 15
3455e. Oct. 1 Holders of roe. Sept.20
Mississippi Pow. Co.. $7 pref. (guar.). 8134 Oct. 1 Holders of rec. Sept. 20
Southern California Gas Co., pref. (qu.) 3731e Oct. 1 Holders of roe. Sept. 30
81 34 Oct. 1 Holders of rec. Sept. 20
56 preferred (guar.)
Class A preferred (guar.)
3735e Oct. 1 Holders of rec. Sept. 30
Mississippi River Power, pref. (quar.)_. 8135 Oct. 1 Holders of roe. Sept. 15
Southern Canada Power 6% cum.pf.(gu) 135 Oct. 1 Holders of rec. Sept. 20
Mississippi Valley Public ServiceSouthern Indiana Gas & Electric Co.
6% preferred B, (guar.)
7% preferred (qua:.)
134 Oct. 1 Holders of Teo. Sept. 20
Holders of rec. Sept. 15
Oct.154
Missouri Edison Co. pref.(guar.)
$134 Oct. 1 Holders of rec. Sept. 20
6% preferred (guar.)
134 Oct.
Holders of roe. Sept. 15
Mohawk Hudson Pow. Corp. pt.(guar.) $134 Nov. 1 Holders of reo. Oct. 15
6.6% preferred (guar.)
1.65 Oct.
Holders of roe. Sept. 15
2nd preferred (guar.)
el% Oct. 1 Holders of rec. Sept. 15
Southwestern Bell Telep., 7% pf. (qu.). 134 Oct.
Holders of roe. Sept. 20
Monongahela Valley Water 7% pf. (MI.) 134 Oct. 15 Holders of rec. Oct. 1
SouthwesternGas & El. Co.7% Pf.(qu.) 134 Oct.
Holders of rec. Sept. 15
Monongahela West Penn Pub! Sere. Co.
s% preferred (qua:.)
2
Oct.
Holders of rec. Refit. 15
I% Oct. 1 Holders Of rec. Sept. 15
7% preferred (guar.)
Southwestern Lt.& Pr.Co. pref.(qu.).- $114 Oct.
Holders of roe. Sept., 15
Montreal Lt. Ht. dr Pr. Cons. com.(gu.) t 37e. Oct. 31 Holders of rec. Sept.30
Springfield City Water, 7% pref. A & B
Montreal Telegraph Co.common (qu.)
80e. Oct. 15 Holders of rec. Sept. 30
(guar.)
154 Oct.
Holders of roe. Sept. 20
Montreal Tramways Co.(guar.)
$234 Oct. 15 Holders of rec. Oct. 6
6% preferred C (qua:.)
134 Oct.
Holders of rec. Sept. 20
Mountain States Power Co. pref.(qu.).. 134 Oct. 20 Holders of rec. Sept. 30
Springfield G.& E. Co.. pf. ger. A (go.). $131 Oct.
Holders of rec. Sept. 15
Mountain States Tel. dr Tel. Co.(qu.)__ $2
Oct. 15 Holders of rec. Sept. 30
Standard Gas & Elec. Co.corn.(quar.)__
50o. Oct. 25 Holders of rec. Sept. 30
Nassau Suffolk Ltg. Co.. 7% ref. (gli.)-134 Oct. 1 Holders of reo. Sept. 16
Participating preferred (guar.)
$134 Oct. 25 Holders of rec. Sept.30
National Pow. & Lt. Co.. $6 pref. (qu.) $134 Nov. 1 Holders of rec. Oct. g
$6 preferred (guar.)
$114 Oct. 25 Holders of rec. Sept. 30
Nevada-California Elec. Corp.. pf. (qu.) $134 dNov.2 Holders of rec. Sept. 300
$7 preferred (guar.)
81 34 Oct. 25 Holden of rec. Sept. 30
New England Gas & Elec. AssociationStandard Power & Lt. Corp.com.(qu.).
30c. Deo, 1 Holders of rec. Nov. 12
$5 1-4 preferred (gnarl
$144 Oct. 1 Holders of roe. Aug. 3Ia
Preferred (guar.)
$154 Nov. 1 Holders of rec. Oct. 15
New England Power Assoc. corn.(guar.)
50e Oct. 10 Holders of roe. Sept. 300 Superior Wet.. Lt. & Pow.. 7% pf.(q11.) 154 Oct. 1 Holders of rec. Sept. 15
Preferred (guar.)
50e Oct. 1 Holders of rec. Sept. 90 Taunton Gas Light Co.(guar.)
SI% Oct. 1 Holders of rec. Sept. 15
6% preferred (guar.)
134 Oct. 1 Holders of roe. Sept. 90 Telephone Investment Corp. (guar.)._
60e. Oct. 1 Holders of roe. Sept. 20
New Engl. Power Co.. pref.(guar.)
$134 Oct. 1 Holders of rec. Sept. 9
Telluride Power Co. pref.(qua:.)
$tg Oct. 1
New Jersey Power & Lt.$6 Pref.(guar.). $134 Oct. 1 Holders of roe. Aug. 31
Tennessee Electric Power Co.
$ $5 preferred (guar.)
6% preferred (guar)
$134 Oct. 1 Holders of rec. Aug. 31
I Holders of roe. Sept. 15
Oct.134
New Jersey Water Co. 7% Pref.(guar.).
134 Oct. 1 Holders of too. Sept. 20
134 Oet. 1 Holders of rm. Sept. 15
6% Preferred (guar.)
New Orleans Public Service. Inc.
7% Preferred (guar.)
1 Holders of roe. Sept. 16
154 Oct
$134 Oct. I Holders of Tee. Sept. 19
$7 preferred (guar.)
7.2% preferred (guar.)
4-60
,
1. 1 Holders of roe. Sept. us
New 1 ork Power & Light Corp.
6% prefe Ted (monthly)_ _
sop. cc 1 Holders of rec. Sept. IS
111 Oct. 1 Holders Of rec. Sept. 15
7% preferred (guar.)
7.2% preferred( aontnlY)....
Sue. Oct. I Holders of tee. Sept. 15
$e preferred (guar.)
$I% Oct. 1 Holders of rec. Sept. 15
5% preferred (guar.)
134 1-2-33 Holders of roe. Dec. 15
New York & Richmond Gas Co.-8% Preferred (guar.)
11.4 1-2-33 Holders of roe. Dec. 15
6% preferred (quar.)
114 Oct. 1 Holders of rec. Sept. 15
7% Preferred (guar.)
114 1 2-33 Holders of roe. Dee. 15
New York steam Corp.. $7 Pref.(qu.)-- $IM Oct. 1 Holders of roe. Sept. 15
7.2% preferred (guar.)
$1.80 1-2-33 Holders of roe. Dee. 15
$134 Oct- 1 Holders of rec. Sept. 15
50e. Nov.
$6 preferred (guar.)
6% preferred (monthly)
Holders of rec. Oct. 15
New York Teieo. 6 A5% rd.(guar.).134 Oct. 15 Holders of roe. Sept. 20
50c. Dee.
6% Preferred (monthly)
Holders of rec. Nov. 16
Newark Tel. Co.(Ohio)6% pref.(guar.) 134 Oct. 10 Holders of rec. Sept.30
50e. 1-2-33 Holders of rec. Dee. 15
6% Preferred (monthly)
Newport Electric Corp.6% pref.(MI.).134 Oct. 1 Holders of roe. Sept. 15
7.2% preferred (monthly)
60c. Nov.
Holders of rec. Oct. 15
1234 Oct. 1 Holders of roe. Sept. 6
North Amer. Co.. com.(guar.)
7.2% preferred (monthly)
60e. Dec.
Holders of rec. Nov. 15
75e. Oct. 1 Holders of rec. Sept. 6
Preferred (guar.)
7.2% preferred (monthly)
60e. 1-2-33 Holders of rec. Dee. 15
North Shore Gas, pref.(quar.)
I% Oct. 1 Holders of tee. Sept. 10
Texas Elec. Serv. Co.. $6 pref.(qual.).. $134 Oct.
Holders of rec. Sept. 15
Northern Indiana p. S. Co.7% Id.(1111.) 134 Oct. 14 Holders of rec. Sept.30
Toledo Edison Co.7% pref.(monthly).. 58 I-3e Oct.
Holders of roe. Sept. 15
6% preferred (guar.)
60e. Oct.
6% preferred (monthly)
134 Oct. 14 Holders of rec. Sept.30
Holders of roe. Sept. 15
preferred
I%
Oct.
535%
14 Holders of rec. Sept. 30
(guar.)
41 2-3e Oct.
5% preferred (monthly)
Holders of rec. Sept. 15
Northern Ontario Pow. Co.. Ltd.. eons50c. Oct. 25 Holders of roe. Sept. 30
$134 Oct.
Tri-Cutinental Corp.$6 prof. (goat.)
Holders of roe. Sept.16a
8% cum. preferred (guar.)
134 Oct. 25 Holders of rec. Sept.30
Twin States Gas& Elec. Co..7% Pt.(Qu) I% Oct.
Holders of rec. Sept. 15
Northern States Power
ut.(Del.)Union El. Lt.& Pr.Co.(III.)6% PL(Qu.) 11.4 Oct.
Holders of rec. Sept. 15
Common class A (q
.)
Union El. LL&Pr.Co.(Mo.)7% Pt.(Qtr.) 134 Oct.
134 Nov. 1 Holders of roe. Sept. 30
Holden of roe. Sept. 15
134 Oct. 20 Holders of rec. Befit. 30
7% Preferred (guar.)
I% Oct.
6% Preferred (guar.)
Holders of rec. Sept. 15
6% preferred (guar.)
134 Oct. 20 Holders of ree. Sept.30
United Corp., corn. (qual.)
10e. Oct.
Holders of rec. Sept. 6
Northwestern Bell Telep. Co.
$3 Cum. preferred (quar.)
750 Oct.
Holders of rec. Sept. 6
154 Oct. 15 Holders of rec. Sept. 20
634% cum. preferred (guar.)
United Gee & Elec. Corp.. pref. (quar.) 134 Oct.
Holders of rec. Sept. 15
Northwestern Elec., 7% let prof.(guar.)
Holders of rec. Sept. 17
United Gas Public Service. prof. (flual'a $134 Oct.
I% Oct.
Holders of rec. Sept. 15
6% preferred (guar.)
$134 Oct.
Holders of rec. Sept. 17
United Light & & Rye. Co., (Del.)Nova Scotia Light & Power ord.(quar.)- 51
Holders of rec. Sept. 17
7% preferred (monthly)
58 1-30 Oct.
Oct.
Holders of rec. Sept. 15
Ohio Edison Co.. $5 Pref. (guar.)
5134 Oct.
Holders of rec. Sept. 15
6.36% preferred (monthly)
63o. Oct.
Holders of roe. Sept. 15
$8 preferred (guar.)
$134 Oct.
Holders of rec. Sept. 15
60o. Oct.
6% Preferred (monthly)
Holders of roe. Sept. 15
$em preferred (guar.)
$1.65 Oct.
Holders of rec. Sept. 15
United Ohio Utilities Co..6% Pt. 0:W- 135 Oct.
dHolders of rec. Sept. 12
$7 preferred (quar.)
Holders of roe Sept. 15
$134 Oct.
194 Nov.
6% Preferred (guar.)
Holders of rec. Oct. 12
51.80 Oct.
57.20 preferred (guar.)
Holders of tee Sept 15
Class A & B (guar.)
Oct.
$1
Holders of rec. Sept. 30
Ohio Elec. Power Co.7% pref.(guar.)._
Holders of rec. Sept. 15
United Pow. & Lt. Corp.(Kansas)
154 Oct.
6% preferred (quar.)
Holders of rec. Sept. 15
134 Oct.
7% Preferred (guar.)
Holders of rec. Sept. 15
134 Oct.
Ohio Public Service Co.. 7% pf. (mo.)_ 58 1-30 Oct.
Holders of rec. Sept. 15
United States Elec. Lt. & Pow.Shame6% preferred (monthly)
500 Oct.
12e. Oct.
.Voting shares, initial (guar.)
Holders of roe. Sept. 15
Holders of roe. Sept. 15
5% preferred (monthly)
Utah Power & Light Co. S7 pref.(go.)... $134 Oct.
41 2-3c Oct.
Holders of rec. Sept. 15
Holders of tee. Sept. 6
$8 preferred (guar.)
Orange& Rockland Elec.Co.,7% Pf.(1111.) 154 Oct.
Holders of rec. Sept. 25
Holders of rec. Sept. 6
$194 Oct.
6% preferred (guar.)
Holders of roe. Sept. 25
Utilities Power & Light. prof.(qua:.)... $134 Oct.
134 Oct.
Holders of roe. Sept. 17
Ottawa Lt. Ht. & Pow.634% pf. (qu.) 154 Oct.
Holders of rec. Sept. 150 West Kootenay Pow.& Lt. Co. Pf.(MI.) $154 Oct.
Holders of rec. Sept. 21
West Penn Pow. Co.,7% cum. pt.(1111.)131 Nov.
Otter Tali Power (Del.) $6 pref.(guar.). $134 Oct.
Holders of rec. Sept. 15
Holders of reo. Oct. 5
6% ourn. preferred (qual.)
11.4 Nov.
$534 Preferred (guar.)
Holders of rec. Sept. 15
Holders of toe. Oct. 5
$134 Oct.
Pacific Gas & Elec.. com.(guar.)
50c. Oct. 1 Holders of roe. Sept. 300 Western New York Water Co.. pt.(go.). $134 Oct.
Holders of roe. Sept. 23
Pacific Lighting Corp.. pref. (quar.).- $134 Oct. 1 Holders of roe. Sept. 30
Western United Gas & El.,6 A % pf.(gu.) 154 Oct.
Holders of rec. Sept. 14
Pacific Tel. & Tel. preferred (quar.)
6% preferred (guar.)
5134 Oct. 1 Holders of rec. Sept.30
Holders of rec. Sept. 14
Oct.134
Panama Pow.& Lt. Corp..7% pf.(qu.).
Westmoreland Water $8 pref. (qua:.)... 5194 Oct.
Holders of roe. Sept. 15
Holders of roe. Sept. 20
144 Oct.
PenInsidar Telephone corn. (quit.)
Wichita Water Co.7% pref.(guar.).- 134 Oet. 1 Holders of rec. Oct. 1
35e Oct.
Holders IN roe. Sept. 15
Common (quar.)
85e Jan r33 Holders of roe. Dee. 16
Wisconsin Elec.Pow.634% pref.(rm.)... 114 Oct.
Holders of roe. Sept. 15
7% preferred (qua:.)
134 Oct.
Holders of rec. Nov. 6
134 Nov. 1
Holders of rec. Sept. 15
6% preferred (guar.)
7% preferred (guar.)
134 2 15 '33 Holders of roe. Feb.
Penn Central Light & Power $5 pf.(qu.)_ $134 Oct. 1 Holders of roe. Sept. 10
Hanks and Trust Companies.
$2.80 preferred (guar.)
Bank of New York & Trust Co.(qual.).. $334 Oct.
700 Oct. 1 Holders of rec. Sept. 10
Holders of rec. Sept. 23
'I% Oct.
Pennsylvania Gas & El. Corp. pfd.(qu.) $134 Oct. 1 Holders of rec. Sept. 20
Bankers Trust Co. Mara
Holders of roe. Sept. 12
Pennsylvania Power Co.$6.60 pf.(mthly)
Bronx County Trust Co.(guar.)
230 Oct.
55c Oct. 1 Holders of rec. Sept. 20
Holders of rec. Sept. 20
$6.60 preferred (monthly)
55c Nov. 1 Holders of rec. Oct. 20
$294 Oct.
Brooklyn Trust Co. (quar.)
Holders of rec. Sept. 24
$6.60 preferred (monthly)
Chase National Bank (guar.)
55e. Dec. 1 Holders of rec. Nov. 19
50o Oct.
Holders of roe. Sept. 15a
45e. Oct.
$6 preferred (guar.)
$135 Dee. 1 Holders of rec. Nov. 19
Chemical Bank & Tr. Co. cap. stk.(qu.)
Holders of rec. Sept. 20
Penna. Pow.& Lt. Co.$7 pf.(quar.)
300.00$.
$134 Oct. 1 Holders of rec. Sept. 15
Holders of rec. Sept. 20
Continental Bank & Trust Co.(guar.) -$6 preferred (guar.)
30e. Oct.
County Trust Co.. capital stock (guar.)
71135 Oct. 1 Holders of roe. Sept. 15
Holders of rec. Sept. 23a
$5 preferred (guar.)
3134 Oct. 1 Holders of rec. Sept. 15
40e. Oct.
Empire Trust Co., capital stock (guar.)
Holders of roe. Sept. 244
Pennsylvania Tel. Corp.. prof.(qu.).- $134 Oct. 1 Holders of rec. Sept. 15
$6
Fifth Ave. Bank (guar.)
Oct.
Holders of rec. Sept.30
Pennsylvania Water de Pow. Co.(guar.)
First National Bank (guar.)
75.. Oct. 1 Holders of roe. Sept.15
Oct.
$25
Holders of rec. Sept. 24
$3
Peoples Gas, Light dr Coke Co.(guar.)._ $134 Oct. 17 Holders of roe. Oct. 3
Oct.
Fulton Trust Co.(guar.)
Holders of roe. Sept. 19
Peoria Water Works Co.7% pref.(qu.).
400. Oct.
134 Oct. 1 Holders of rec. Sept. 20
Irving Trust Co.(guar.)
Holders of tee. Sept. 12
Philadelphia Co. common (guar.)
35c. Oct. 25 Holders of rec. Oct. 1
50o. Oct.
Manhattan Co.(gUara
Holders of reo. Sept. 15a
6% cum. pref. (semi-ann.)
50c. Oct.
Manufacturers Trust CO.(guar.)
134 Nov. 1 Holders of rec. Oct. 1
Holders of rec. Sept. 17
$1
$5 cumulative preferred (guar.)
$134 Oct. 1 Holders of roe. Sept. 1
Oct.
Nassau County Trust Co. (guar.)
Holders of roe. Sept. 20
114 Oct. 1 Holders of reo Sept. 1
$e cumulative preferred (guar.)
National City Bank (guar.)
50o. Oct.
Holders of roe. Sept. 10
Philadelphia Elec. Pow. Co.8% of.(0u.)
New Rochelle Trust Co.(guar.)
2
$1 Oct.
Oct. 1 Holders of rec. Sept. 10
Holders of rec. Sept. 15
Phila. Traction Co., capital stock (5.-a.) $2
$2.50 Oct.
Rensselaer County Bank (guar.)
Oct. 1 Holders of rec. Sept. 10
Holders of rec. Sept. 30
Certificates of deposit (guar.)
Oct.
Unite.] Staten Trust (N. Y.)(Quara----$15
$2
Oct. 1 Holders of me. Sept. 10
Holders of roe. Sept. 20
Plainfield Union Water Co.(guar.)
$134 Oct. 1 Holders of rec. Oct. 1
Oct.
Extra
$10
Holders of rec. Pent.20
Ponce Elec. Co.. prof.(guar.)
40c. Oct.
Westchester Title & Trust Co.(guar.).134 Oct. 1 Holders of roe. Sept. 15
Holders of roe. Sept. 30
Porto Rico Power Co., Ltd..7% M(qu.) 154 Oct. 1 Holders of roe. Sept. 15
Westchester Trust Co.capital stock (43e.) 434 Oct.
Holders of Fee. Sept. 27
Power Corp. of Canada. Ltd.
6% cum. pref. (guar.)
Fire Insurance.
t134 Oct. 15 Holders of roe. Sept.30
1134 Oct. 16 Holders of roe. Sept. 30
6% non-cum. pref. (guar.)
Aetna F're Insurance Co.(guar.)
500. Oct.
Holders of rec. Sept. 12
Providence Gas Co., corn. (guar.)
Alien-Ionia Fire Insur. (guar.)
30e. Oct. 1 Holders of rec. Sept. 15
25e. Oct.
Holders of rec. Sept. 20
Public Service Co.of ColoradoAmerican Insurance Co.(guar.)
1235c Oct.
Holders of rec. Sept. 12
58 1-30 Oct. 1 Holders of rec. Sept. 15
7% Preferred (monthly)
Boston Insurance Co
84 Oct.
Holders of roe. Sept.20
4
6% preferred (monthly)
50e Oct. 1 Holders of rec. Sept. 15
Oct.
Glen Falls Insurance Co
Holders of roe. Sept. 15
41 2-3e Oct. 1 Holders of rec. Sept. 16
5% preferred (monthly)
Hanover Flee Insurance Co.(guar.).
- 40e, Oct.
Holders of rec. Sept. 19
Public Service Co. of Indiana 87 PL(Qu.) 5154 Oct. 15 Holders of rec. Sept. 3()
Hartford Fire Insurance (qua:.)
50e. Oct.
Holders of rec. Sept. 15
$6 preferred (guar.)
$134 Oct. 15 Holders of rec. Sept. 30
50e. Oct.
National Fire Insurance Co.(qual.)....
Holders of roc. Sept. 22
New Hampshire Fire Insurance (guar.)-400. Oct.
Public Service Corp. of N.3.Holders of rec. Sept. 17
500 Oct. 31 Holders of rec. Oct. 1
30e. Oct. 1 Holders of rec. Sept.30
Philadelphia National Insurance(guar.).
6% preferred (monthly)
Phoenix Fire Ins. Co.(guar.)
500. Oct.
Oct. 15 Holders of rec. Feet. 20
Puget Sound Pow.& Lt. Co.$5 Pt.(qu.) 51
Holders of rec. Sept. 15
$134 Oct. 15 Holders of roe. Sept. 20
90e. Oct.
Reliable Fire Insurance (guar.)
$5 preferred (quar.)
Springfield Fire & Marine Ins. Co.(qu.). $1.13 Oct.
Queens Bor. Gas dc El.6% prof.(guar.). 135 Oct. 1 Holders of roe. Sept. 18
Holders of rec. Sept. 15
Name of Company.
2291
Financial Chronicle
Volume 135
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Miscellaneous.
Oct. 1 Holders of rec. Sept.15
Canada Permanent Mtge. (guar.)
$3
50c. Oct. I Holders of rec. Sept. 21
Abbott Laboratories (guar.)
Canadian Canners, Ltd., 1st pf. (qu.)._ 1513-4 Oct. 1 Holders of rec. Sept. 15
lit Nov. 1 Holders of rec. Oct. 15
Abraham dr Straus, Inc., pref.,(guar.)
Convertible preferred (quar.)
110g. Oct. 1 Holders of rec. Sept. 15
25e. Oct. 1 Holders of rec. Sept. 20
Acme Steel Co. (guar.)
Can. Car & Fdy. Co., LW., pref. (qtr.)._ 143g. Oct. 8 Holders of rec. Sept. 26
Oct. 1
Aeolian Co. of Missouri.8% 2d pref.(qu) 2
Canadian Cottons, Ltd. pref.(quar.)
14 Oct. 4 Holders of rec. Sept. 17
400 Oct. 1 Holders of rec. Sept. 17
Aetna Casualty & Surety (guar.)
Oct. 1 Holders of tee. rept. 15
Canadian Gen Eleo. Co.. Ltd..com.(qU.)
131,c. Oct. 1 Holders of rec. Sept. 19
Affiliated Products(monthly)
Oct. 1 Holders of roe Sept. 15
Preferred
(guar.)
15
Oct.
1
Holders of rec. Sept
Agnew Surpass Shoe Storer,. Ltd., pf.(qu) 1%
Canadian Gen'i Investments reg. 0111.)
10c. Oct. 1 Holders of rec. Sept. 15
50c. Oct. 1 Holders of rec. Sept. 26
Agricultural Ins. Co (N. Y.) (quar.)Oct. 15 Holders of rec. Sept. 30
Canadian
Industries,
(au.).
Holders
of
Sept.
30
Ltd..
rec.
75c.
Oct.
15
7%
Pt.
1134
Air Reduction Co.. Inc., cap. stk.(au.).
Canadian Oil Co.. Ltd.. pre( (guar.)._
82 Oct. 1 Holders o re, sem. 2.0
Alaska Juneau Gold Mining Co.(guar.) _ 1216c. Nov. 1 Holders of rec. Oct. 10
t50c. Oct. 1 Holders of rec. Sept. 26
10c. Oct. 1 Holders of rec. Sept. 210 Canadian Westinghouse (guar.)
Alles & Fisher, Inc.(guar.)
Canadian Wirebound Box, cl. A (qu.)
25c. Oct. 1 Holders of rec. Sept. 15
Allied Chem.& Dye Corp. pref.(quit.). 1% Oct. 1 Holders of rec. Sem.
Canfield Oil Co., 7% preferred (guar.).
$1 34 Oct. 1 Holders of rec. Sept. 21
134 Dec. 31 Holders of rec. Dec 20
Aloe (H. G.) Co.. pref. (guar.)
Cannon Mills Co.(guar.)
25o. Oct. 1 Holders of rec. Sept. 19
750. Oct. 1 Holders of rec. Sept 15
Aluminum Co. of Amer, pref.(guar.)
Capital Adminis. Co., Ltd.6% pf.(qu.).
75c. Oct. 1 Holders of rec. Sept. 19a
15c. Oct. 1 Holders of rec. Sept. 20
Aluminum Goods Mfg. Co., COM.(qu.)_
6% preferred (guar.)
5750. Oct. 1 Holders of rec. Sept. 190
50c. Dec. 31 Holders of rec. Dec. 15
Aluminum Manufactures. corn. (qu.)
81 3-4 Oct. 1 Holders of rec. Sept. 190
Preferred class A (guar.)
1% Dec. 31 Holders of rec. Dec. 15
Preferred (quar.)
Carnation Co., pref. (quar.)
el% Oct. 1 Holders of rec. Sept.20
134 Oct. 1 Holders of rec. Sept. 16
American Bakeries 7% pref.(quar.)_ _ _
$134 Oct. 1 Holders of rec. Sept. 12
Case (J. I.) Co.. pref.(quar.)
75e. Oct. 1 Holders of me. Sept. 12
Amer. Bank Note Co., pref. (quiz.)....
134 Oct. 1 Holders of rec. Sept. 120 Celanese Corp. of Am.7% pref. (quit.). 87(40. Oct. 1 Holders of rec. Sept.17
Preferred (quar.)
134 Oct. 1 Holders of rec. Sept. 166 Central Aguirre Associates. corn. (qu.) _ 374c. Oct. 1 Holders of rec. Sept. 20
American Can Co.7% pref.(guar.)
Central Franklin Process lot pref.(qu.) $131 Oct. 1 Holders of rec. Sept. 30
50c. Oct. 1 Holders of rec. Sept. 12
American Chicle Co.(guar.)
2d preferred (guar.)
514 Oct. I Holders of rec. Sept. 30
25c. Oct. 1 Holders of rec. Sept. 12
Extra
160 Nov. 15 Holders of rec. Nov. 5
Centrifugal Pipe (guar.)
Holders of reo. Sept. 20
14 Oct.
American (agar Co., pref. (guar.)
Products
Prof.
(guar.)
374c Oct. I Holders of rec. Sept. 20
Store
Chain
Corp.
Holders
of
14
roe. Oct. 20
Nov.
Amer. Crayon Co.. 6% pref. (quar.)Champion Coated Paper pref. (quar.)___ $114 Oct. 1 Holders of rec. Sept. 20
Holders of rec. Sept. 20
American Discount (Ga.), com.(quar.). 74c. Oct.
Special preferred (guar.)
$131 Oct. 1 Holders of rec. Sept. 20
Holders of rec. Nov 25
14 Deo.
American Envelope Jo., 7% pref. (qu.)
Champion Fiber pref. (guar.)
Holders of rec. Sept. 20
$116 Oct.
$134 Oct. 1 Holders of rec. Sept. 20
American Express Co. (guar.)
51 3-4 Oct. I Holders of rec. Sept. 16
Champion international Co.(quar.)
Holders of rec. Sept. 15
Oct.
American Hard Rubber, 8% Pref.(qu.)- 2
7% preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 16,
Holders of rec. Sept. 15
American Hardware Co., common (qu.). 50c. Oct.
Chicago Daily News $7 pref.(guar.)._ $134 Oct. 1 Holders of rec. Sept. 20
50c. Jan 1'3 Holders of rec. Dec. 16
Common (q liar.)
Chicago Junction Ry. dr Union Stock
250. Oct. 1 Holders dt rec. Sept. 15
American Hawaiian S. S. Co. (qua,.)...
Yards. common (guar.)
$24 Oct. 1 Holders of rec. Sept. 15a
American Home Prod.(monthly)
350. Oct. 1 Holders of rec. Sept. 140
Oct. 1 Holders of rec. Sept. 150
SI
Preferred (guar.)
$1.50 Oct. 25 Holders of rec. Oct. 70
American lee Co., pref. (guar.)
Chicago Ry. Equip. Co.7% cum. pf.(qu) 214c Oct. I Holders of rec. Sept. 20
$1.11 Oct. 1 Holders of rec. Sept. 15
American Mfg. Co., pref. (guar.)
Chicago Towel Co., pref. (guar.)
$134 Oct. 1 Holders of rec. Sept. 20
Amer. Natl. Co.(Toledo). Prof. A (qu.).
134 Oct. 1 Holders of rec. Sept. 20
Chicago Transfer & Clearing, pf.(an.).. 814 Oct. 1 Holders of rec. Sept. 15
Preferred A (quarterly)
134 Jan 1'33 Holders of rec. Dec. 20
1-2-33 Holders of rec. Dec. 15
$134
Preferred (guar.)
I.% Oct. 1 Holders or rec. Sept. 20
Preferred B (quarterly)
Christiana Seeuritles. 7% pref. (qu.)
1% Oct. 1 Holders of rec. Sept. 20
Preferred 11 (quarterly)
134 Jan 1'33 Holders of rec. Dec. 20
50c Oct. 1 Holders of rec. Sept. 25
Cinc. Adv. Prod. (guar.)
American Office Bldg.. pref. (quar.)._.. 5116 Oct. 1 Holders of rec. Sept. 24
Holders of rec. Sept. 15
Cincinnati Wholesale Grocery pref. (qu.) 5116 Oct.
American Optical 1st pref. (quit.).... $1% Oct. 1 Holders of rec. Sept. 17
Holders of rec. Sept. 27
City Investing Co., Prof. (guar.)
131 Oct.
American Rolling Mill, 6% pref.(an.).. 134 Oct. 15 Holders of rec. Sept. 30
Holders of rec. Sept. 15
Oct.
(guar.)
12340
Clark
(D.
L.)
Co.
Holders
of
1
rec. Sept. 15
Series11 preferred (quar.)
$14 Oct.
2.5c Oct. I Holders of rec. Sept. 20
20o Oct. 1 Holders of rec. Sept. 206 Claude Neon Elec. Prod.,Ltd.,com.(qu.)
American Screw Co. (guar.)
35c Oct. 1 Holders of rec. Sept. 20
Preferred (guar.)
50c Nov. 1 Holders of rec. Oct. 15
American Ship 13ulidliag Co., corn. (au.)
Holders of rec. Sept. 20
Cleveland Union Stockyards (guar.)... 3734c. Oct.
75c Oct. 1 Holders of rec. Sept. 14
American Snuff Co.. corn, (guar.)
20c. Oct. 1 Holders of rec. Sept. 23
Clinton Title & Mtge. Guar.(s.-a.)
Preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 14
Holders
of rec. Sept. 23
Oct.
1
10c.
Extra
Holders
50c
Oct.
1
of
rec.
Spot.
15
American Stores Co.(guar.)
50c. Oct. 1 Holders of rec. Sept. 20
50c. Oct. 3 Holders of rec. Sept. 6a Clorox Chemical, class A (guar.)
American Sugar Refining Co.. cons.(an.)
Holders of rec. Sept. 20
Preferred (guar.)
134 Oct. 3 Holders of roe. Sept. ea Cluett-Peabody & Co., pref.(guar.).- 8134 Oct.
zed (,t. 3(
Coats; (J. & P.), Ltd. ord. reg. (guar.)._
American Thermos Bottle. pref. (qu.)._ 8734c Oct. 1 Holders of rec. Sept. 20
Holders of rec. Aug. 19
Amer.deposited receipts for ord. tog..
American Tobacco Co. pref. (quit.).... 14 (let. 1 Hoiders of rec. Sept. 10
5 Holders of rec. Oct. 5
xw6
4
0
d.
c. Oct.17
Coca-Cola
Bottling
Co.
of
St.
L.
(guar.)
Holders
of
1
rec.
Oct.
American Wringer Co. (guar.)
Sept.
15
3734c.
81 11 Oct. 1 Holders of rec. Sept. 14
Coca-Cola Co.. common (guar.)
30c. Oct. 1 Holders of rec. Sept. 19
Anchor Cap Corp.. corn. (guar.)
25c cct. 1 Holders of rec. Sept. 14
Extra
814 Oct. 1 Holders of rec. Sept. 19
Preferred (qua,.)
Coca-Cola Int'l Corp., corn. (quiz.).... $334 Oct. 1 Holders of rec. Sept. 14
25c. Oct. 15 Holders of rec. Oct. 4
Anglo-National Corp., cl. A corn. (au.)
500. Oct. 1 Holders of roe. Sept. 14
Extra
Apex Electric Mfg. Co.. pref. (guar.)._ 81% Oct. 1 Holders of rec. Sept. 20
40c. Oct. I Holders of rec. Sept. 15
Cohen (Dan) Co.common (guar.)
Apponang Co., corn. (quar.)
50e. Oct. 1 Holders of rec. Sept. 15
Colgate-Palmolive-Peet Co.6% pf.(an.) 134 Oct. 1 Holders of rec. Sept. 10
14 Oct. 1 Holders of rec. Sept. 15
64% preferred (guar.)
Janl'33 Holders of rec. Dec. 10
6% preferred (guar.)
Armour & Co 7% gtd Prof.(guar.) -1 if Oct. 1 Holders of rec. Sept. 10
Oct. 1 Holders of rec. Sept. 13
"
$2
Collateral Loan Co.(Boston)(guar.)
Arrow-Hart & Hegeman Electric) Co.
d$1.00 Oct. 1 Holders of rec. Sept. 30
Columbia Mills(quar.)
10e. Oct. 1 Holders of rec. Sept. 24
Common (guar.)
:
374
20 Oct. 1 Holders of rec. Sept.20
Columbian Vise & Mfg. (quar.)
Preferred (guar.)
$114 Oct. 1 Holders of rec. Sept. 24
Oct. 10 Holders of rec. Oct. 1
Comrn'l Disc. (of Los Ang.) pf. A (qu.)_
Arundel Corp. (guar.)
75c. Oct. I Holders of rec. Sept. 22
Preferred B (guar.)
173-4c Oct. 10 Holders of rec. Oct. 1
Associated Bankers Trust dr Mtge.
Oct. 1 Holders of rec. Sept. 6
Invest.
Tr.
50c
cons.
(cit)
Commercial
Corp..
rec.
Sept.
20
Holders of
Guarantee (guar.)
18%c Oct.
134 Oct. 1 Holders of rec. Sept. 6
7% 1st preferred (guar.)
Assoc. Breweries of Canada 7% pf.(qu.) 81% Oct.
Holders of tee. Sept. 15
134 Oct. 1 Holders of rec. Sept. 0
634% 1st preferred Mari
Holders of rec. Sept. 20
Associated Industrial Bankers class A... 45c. Oct.
m$1 4 Oct. 1 Holders of rec. Sept. 6
Convertible pref.(guar.)
Atlantic City Sewage (quit.)
25c. Oct. 1 Holders of rec. Oct. I
Dec.
Holders of rec. Nov. 21
Commercial Solvents Corp., corn. (s.-a.)
Atlas Thrift Plan. pref. (guar.)
174e. Oct. 1 Holders of rec. Sept. 24
13
30
.6% Oct. 31
1 Holders of rec. Sept. 1
set.
Common
Stock
'Pr.
She.,
A,
reg
of
rec.
Sept.
21
Oct. 1 Holders
Auburn Automobile Co.(guar.)
81
Ilc Oct. 1 Holders of rec. Sept. 1
Series Al, reg
Stock dividend
12 Oct. 1 Holders of rec. Sept.21
Community State Corp.. Cl. A (quiz.).. 1234c.Dec. 31 Holders of rec. Dee. 27
Austin Motor Co., Ltd.. common
zw25 Nov. 7 Holders of roe. Sept.30
20c Oct. 1 Holders of rec. Sept. 15
Coon. Gas & Coke com. (guar.)
stc25 Nov. 7 Holders of rec. Sept. 30
Bonus
$e preferred (guar.)
75e Oct. 1 Holders of rec. Sept. 15
25c. Nov. I Holders of rec. Oct. 14
Austin, Nichols & Co. pref. A (qua,.)...
4
30c O
oc
ct
t.. 1 Holders of rec. Sept. 20
Connecticut
Gen.
Life
Ins.
Co.
(quar.)..
Automobile ins. of Hartford (guar.).- 250 Oct. 1 Holders of rec. Sept. 17
Holders of rec. Sept. 1
Conservative Invest. Corp.8% pf.(0.-a.)
Oct. 1 Holders of rec. Sept.30
Avondale Milk, common (Qua,.)
$5
$14 Oct. 1 Holders of rec. Sept. 30
Consolidated Car Heating (quar.)
Oct. 15
8% preferred (semi-annual)
$4
Holders of rec. Oct. 15
Consolidated Chemical Indust.cl. A (qu) 37340 Nov.
1300 Oct. 1 Holders of tee. Sept. 15
Axton-Fisher Tob., class A (guar.)
Holders of rec. Sept.24
Consolidated Dry Goods, 7% pf. (s.-a.) 334 Oct.
$14 Oct. 1 Holders of tee. Sept. 15
Preferred (guar.)
Oct.
Holders of rec. Sept. 15
25c.
Consolidated
Laundries
corn.
(guar.)._
Holders
of
rec.
Sept.
20
50c.
Oct.
1
Babcock & Wilcox (guar.)
Holders of rec. Oct. 15
Preferred (quiz.)
81% Nov.
500. Oct. 1 Holders of rec. Sept. 30
Badger Paint & Hardware corn. (guar.).
Consolidated Paper Co. 7% pref.(quar.) 17tic Oct. 1 Holders of rec. Sept. 20
25e. Oct. 1 Holders of rec. Sept.30
Preferred (guar.)
Continental Bak. Corp.. pref. (guar.)._ 81 3-4 Oct. 1 Holders of rec. Sept. 20a
$loj Oct. I Holders of rec. Sept. 17
Balaban & Kate preferred (qum.)
75e. Oct. 20 Holders of rec. Oct. 3
Corn Products Refining corn.(quiz.)....
25c. Oct. 1 Holders of rec. Sept. 20
Bancohlo Corp.(guar.)
$1% Oct. 15 Holders of rec. Oct. 3
Preferred (guar.)
Bandtlen & Kluze, Inc.. 7% if.(an.)... 87 tic Oct. 1 Holders of rec. Sept. 22
25c. Dee. 1 Holders of rec. Nov. 19
Corno Mills, common (guar.)
10c, Oct. 1 Holders of rec. Sept. 20
Bank Shares. cl A (guar.)
Cottrell(C. B.1 & Sons,6% pref.(an.).. 134 Oct. 1
Bank Stock Trust Shares, ser. Cl reg._ 13.3c. Oct. 1 Holders of rec. Sept. 1
Oct. I Holders of rec. Sept. 15
$14
(guar.)
Courier
Co.,
common
Holders
Post
of
Oct.
1
rec. Sept. 1
12.9c
Series 02 reg
V% Oct. 1 Holders of rec. Sept. 15
Holders of reo. Sept. 25
Preferred (guar.)
Barber(W. H.) 7% pref.(guar.)
134 Oct.
50c. Oct. 1 Holders of rec. Sept. 21
Cream of Wheat (guar.)
Holders of rec. Sept. 30
Bayuk Cigars. Inc., 1st pref. (quiz.)... El% Oct. 1
15c Oct. 1 Holders of rec. Sept. 15
Creameries; of America (guar.)
Holders of rec. Sept. 30
12 40 Oct.
Beaton & Caldwell (monthly)
25o Oct. 10 difolders of rec. Sept. 30
Holders of rec. Sept. 14
Creamery Package Mfg.. corn. (quiz.)..
Beatrice Creamery Co.. pref.(guar.).-- $131 Oct.
Oct. 10 dHolders of rec. Sept. 30
Oct.
$114
Holders
of
roe.
Preferred
750.
(guar.)
Sept. 12
Beech-Nut Pecking Co.. com.(guar.)...
Oct. 1 Holders of rec. Sept. 13
Crown Willamette Paper Co., 1st pfd- A$1
1% Oct. 1
7% A (guar.)
15c Oct. 15 Holders of rec. Oct. 5
Crum & Forster. corn. (guar.)
50c. Oct. 1 Holders of rec. Sept. 20
Bell View Oil Synd. (guar.)
52 Dec. 31 Holders of rec. Dec. 20
8% preferred (guar.)20c. Oct. 1 Holders of rec. Sept. 22
Bickford's. Inc.. common (guar.)
Cudahy Packing Co., common (quiz.).. 6234e.Oct. 15 Holders of rec. Oct. 5
6216c Oct. 1 Holders of rec. Sept. 22
Preferred (guar.)
3
Nov. 1 Holders of rec. Oct. 20
6% preferred (s.-s.)
Holders of rec. Oct. 1
514 Oct.
Bibb Mfg. Co. (guar.)
356 Nov. 1 Holders of rec. Oct. 20
Holders of rec. Sept. 26
7% Preferred (s.-a.)
1216c Oct.
1311rd & Son (guar.)
Curtis Publishing Co.. pref.(guar.)
Holders of rec. Nov. 10
$134 Oct. 1 Holders of rec. Sept. 20
873-4c. Nov. 1
Block Bros. Tobacco. com.(guar.)
Davenport Hosiery Mills, Inc., com.(qu) 25c Oct. 1 Holders of rec. Sept. 20
1 4 Dec. 3 Holders or rec. Doe. 24
Preferred (guar.)
14 Oct. 1 Holders of rec. Sept. 20
Holders of ref. Sept. 20
Preferred (guar.)
1% Oct.
Blumenthal (Sidney) & Co.. pref. (qu.).
Holders
Davidson Co. pref. (guar.)
Oct.
30
of
ree.
$1
Oat.
15
$134 Oct. 1 Holders of rec. Sept. 20
Bon Aml Co.. class A (guar.)
50c Oct. 1 Holders of rec. Sept. 20
De Long Hook & Eye (quar.)
Holders of roe. Sept. 24
50o. Oct.
Class B (guar.)
Holders of rec. Sept. lb
8716c Oct. 1 Holders of rec. Sept. 21
Deco Restaurant pref. (guar.)
814 Oct.
Borg Warner Co pref.(guar.)
Holders of rec. Sept. 22
Denver Union Stockyards Co.(guar.).
75c Oct. I Holders of rem Sept.20
Boston Sand & Gravel 7% pref. (quar.)_ 874o Oct.
60 Oct. 1 Holders of tee. Sept. 1
Deposited Bank Shares(N. Y.)
Oct. I Holders of rec. Sept. 24
El
Bourbon Stockyards (guar.)
Series
A
15
Holders
of
8e Oct. 1 Holders of rec. Sept. 1
50c.
Oct.
roe.
Sept.
20
Brantford-Cordage. Ltd., lot pref. (qu.)
15c. Oct. 1 Holders of rec. Sept. 150 Deposited Insurance Shares, el. A (s.-a.) 24 Nov. 1 Holders of rec. Sept. 16
Brill° Mfg. Co., common (guar.)
50c. Oct. 1 Holders of rec. Sept. 150 Devoe & Raynolds,Inc.,1st & 2d pf.(qu.) $134 Oct. 1 Holders of rec. Sept. 20
Clans A (guar.)
150 Oct. 20 Holders of rec. Oct. 1
Devonian 011 Co
51% Oct. 1 Holders of rec. Sept. 15
Bristol Brea Corp.. pref.(guar.)
25c Oct. 1 Holders of rec. Sept. 20
Diamond Shoe Corp. common (quar.)
Brit. Amer. 011 Co Ltd.. cap. stk.(qu.) raft. Oct. 1 Holders of roe. Sept. 14
1.4 Oct. 1 Holders of rec. Sept. 20
63-4% preferred
British Amer.Tobacco Co.. Ltd..
Doctor Pepper Co.(quit,)
rel0d. Oct. 7 Holders of tee. Sept. 2
30c Dec. 1 Holders of rec. Nov. 18
Amer. dep. reo, for ord. shares
25c. Oct. 20 Holders of rec. Sept. 30
Dome Mines, Inc., cap.stk. (guar.) _
zwfid. Oct. 7 Holders of tee. Srnr. 2
Amer. dep. rec. for 5% pref. reg
10c. Oct. 20 Holders of rec. Sept.30
Extra
Amer. dep. rec. for 5% pref. bearer zw6d. Oct. 7 Holders of rec. Sept. 2
60c. Nov. 15 Holders of rec. Oct. 31
Dominion Bridge. Ltd.(guar.)
25c Oct. 1 Holders of rec. Sept. 20
Broad StreetHnvest, Co., Inc., cap. stk_
1
Holders
of
corn.
Oct.
rec.
1514
Oct. 1 Holders of rec. Sept.15
Dominion
Glass
Co.,
1%
(qua
Sept.
19
Bucyrus-Erle. 7% °ref. (guar.)
I 45c Oct. 1 Holders of rec. Sept. 20
Preferred (quer.)
15151 Oct. 1 Holders of rec. Sept. 15
Bucyrus-Monighan, class A (quit.)
30c. Oct. 1 Holders of rec. Sept. 15
Dominion Stores, Ltd.,corn.(guar.).
250. Oct. 1 Holders of rec. Sept. 19
Building Products, Ltd., cl. A & B (qtr.)
Dominion Textile corn. (guar.)
18134 Oct. 1 Holders of rec. Sept. 15
75c, Oct. 1 Holders of roe. Sept. 23
Burco, Inc., $3 cony. Prof. (guar.)
Preferred (guar.)
15131 Oct. 15 Holders of rec. Sept.30
Burma Corp. Ltd.. Am. dep. rec. (final) sl an Oct. 22 Holders of rec. Sere 15
Draper Corp. corn.(guar.)
50c. Oct. 1 Holders of rec. Aug. 27
1600. Oct. 1 Holders of rec. Sept. 15
Burt(F. N.) Co. common (guar.)
Driver-Harris Co., preferred (quar.)_ _ _ 5134 Oct. 1 Holders of rec. Sept. 20
1E1% Oct. 1 Holders of rec. Sept. 15
Preferred (guar.)
Du Pont (E.I.)de Nem.&
Bush Terminal IlIcht. 00.7% pf. W14- lit Oct. 1 Holders of rec. Sept. 20
Debenture stock (quar.)
134 Oct. 25 Holders of me. Oct. 10
8134 Nov. 1 Holders of rec. Oct. 14
Byers (A. M.) preferred (guar.)
Duncan Mills pref. (guar.)
400. Oct. 1 Holders of rec. Sere le
Calamba Sugar Estates. corn, (quiz.)..
El% Oct. 1
Duplan Silk Corp. pref. (guar.)
$2
Oct. 1 Holders Of rec. Sept. 23
350. Oct. 1 Holders of ma Sept. 15
7% preferred (quar.)
Eagle Warehouse & Storage Co.of
Calaveras Cement Co., 7% pref. (guar.) 134 Oct. 15 Holders of roe. Sept.30
Brooklyn (quar.)
14 Oct. 1 Holders of rec. Sept. 26
California Group Corp.6% pref.(guar.). 134 Oct. 1 Holders of rec. Sept. 30
Eastern Steamship Lines, let pref. (an.)
Holders of rec. Sept. 22
Oct. 1 Holders of rec. Sept. 1130
500. Oct.
California Ink class A & B (guar.)
Preferred (guar.)
87 1els Oct. 1 Holders of roe. Sept. 16a
75c. Oct. 15 Holders of rec. Oct. 10
Calif. Western States Life Ins. Co.(qu.)
Eastern Steel Products, Prof. (quar.)_ _ _ $151 Oct. 1 Holders of rec. Sept. 15
Oct. 1 Holders of rec. Sept. 15
$I
CambriaIron Co.(s.-a.)
Holders of rec. Sept. 19
Eastman Kodak Co • common (guar.)._
750 Oct. 1 Holders of rec. Sept. 3
Cambridge Invest. Corp., Cl. A & B (qu.) 124c. Oct.
Holders of rec. Sept. 15
Preferred (guar.)
$13.4 Oct. 1 Holders of tee. Sept. 3
Canada Bread Co. 7% pref. A (quiz.).. £151 Oct.
Economy
Holders
of
Grocer,'
Stores
1
rec.
25e Oct. 15 Holders of rec. Oct. 1
Oct.
Corp.
(quiz.)..
Sept.
30
25c.
Breweries,
Ltd..
Canada Bud
com.(q11.)Edmonton City Dairy, Ltd., 634% pref.
30e. Oct. I Holders of rec. Oct. 1
Canada Dry Ginger Ale (quar.)
(quit.)
Holders
Oct. 1 Holders of rec. SePt. 15
of
134
rec.
Sept.
Oct.
1
15
Ltd.,
Pack.,
pref.
(guar.)
SI%
Canada
2292
Financial Chronicle
Per
When
Cent. Payable.
Books Cloud.
Dare Inchalve.
Oct. 1 1932
Per
When
Cent. Payable.
Books Closed
Days Inclusive
Miscellaneous (Conrises4).
Miscellaneous (Continued).
Auto Lite, COM.(guar.)
30e. Oct.
Holders of rec. Sept.20
Independent Pneumatic Tool (guar.).- 50c. Oct. 1 Holders of reo. Sept.'24
Preferred (quar.)
81% Oct.
Holders of reo. Sept.20
Independent Shares Corp.(5.-a.)
9e. Oct. 1 Holders of rec. Aug.
Electric Controller & Mfg Co.(on.)
250. Oct.
Holders of rec. Sept.20
Ind. Cot. Mills. Inc.(S.C.) 7% pf.(qu.) 154 Nov. 1 Holders of reo. Oct. 31
20
Electric Storage Battery Co.7% preferred (guar.)
154
2-1-33 Holders of rec.
20'33
Common and preferred (quar.)
500. Oct.
Holders of reo. Sept. 19
Indiana General Service Co.6% pf.(qua 1% Oct. 1 Holders of rec.in.
Sept.
9
Emerson's Bromo-Seltzer. el. A & B (qu.) 50c. Oct.
Holders of rec. Sept. 15
Indiana Pipe Line Co. capital stock
10c. Nov.15 Holders o/ rec. Oct. 21
Endicott-Johnson, corn. (quar.)
750. Oct.
Holders of rec. Sept. 17
Extra
Sc. Nov.15 Holders of rec. Oct. 21
Preferred (guar.)
31H Oct.
Holders of reo. Sept.17
Industrial Credit, corn. (guar.)
25e. Oct. 1
Equitable Office Bldg..corn.(Qum.).
37340. Oct. 1 Holders of roe. Sept. 15
Extra
6140. Oct. 1
Preferred bluer.)
1H Oct. 1 Holders of rec. Sept. 15
Preferred (quar.)
1% Oct. I
Ewa Plantation Co.(guar.)
60o. Nov.15 Holders of rec. Nov. 5
Industrial & Power Secs. Co.((Mara
25o. Doe. 1 Holders of rec. Nov. 1
Faber. Coe & Gregg. Pref•(guar.)
815( Nov.
Holders of rec. Oct. 2
Industrial Rayon, torn. (quar.)
50o. Oct. 1 Holders of reo. Sept.
Preferred (guar.)
3131 Feb. 1 Holders of rec. Jan. 20
Inland Investors, Inc., corn.(guar.).- 1214e. Oct. I Holders of rec. Sept. 19
20
Family Loan Society, Inc.. Pref.(Qom.) 8710. Oct. 1 Holders of rec. Sept. 10
Inter-Island Steam Navigation (mthly.)100. Oct. 31 Holders of rec. Oct. 24
Preferred extra
3714e. Oct. 1 Holders of rec. Sept. 10
Monthly
100. Nov.30 Holders of reo. Nov. 24
Common (quar.)
25c. Oct. 1 Holders of rec. Sept. 10
Monthly
100. Doe. 31 Holders of reo. Dec.
Fanny Farmer Candy Shops. Pref.(qu.). 60c. Oct. 1 Holders of rec. Sept. 15
Interlake Steamship Co., corn.(qua?.).. 250. Oct. 1 Holders of rec. Sept. 24
20
Farmers & Traders Life Ms.Co.(quar.)- $234 Oct. 1 Holders of roe. Sept. 9
Internat. Business Mach Corp.(guar.). 3134 Oct. 10 Holders of rec. Sept.
220
Faultless Rubber. common (guar.)
500. Oct. 1 Holders of rec. Sept.15
Internat. Button Hole Sew. Mch..(qu.). 20o. Oct. 1 Holders of reo. Sept. 160
Federal Compress & Warehouse CoInternational Carriers. Ltd.((Mara
5o. Oct. 1 Holders of rec. Sept. 160
7% preferred (quar.)
114 Oct. 1
International Elevating (Qum.)
81
Oct. I Holders of rec. Sept.16
Federated Dept. Stores
150. Oct. 1 Holders of reo. Sept.21
International Harvester. coin. (quar.).... 80e Oct. 15 Holders of rec. Sept.20
Filene(W o.) Sons Co.. Pref.(qar.)-Oct. 1 Holders of reo. Sept.20a International Nickel of Can.7% PL(q.) 134
Nov. 1 Holders of rec. Oct. 3
Finance Co. of Amer., cl. A&B oom.(01.) 100. Oct. 15 Holders of rec. Oct. 5
Internat. Reinsurance Corp.(qua?.)...
500 Nov. 1 Holders of rec. Oct.
7% preferred (quar.)
1H Oct. 15 Holders of rec. Oct. 5
International Salt Co.,cap. stook (quar.) 37.14e. Oct. 1 Holders of rec. Sept.20
150
7% preferred, class A
1H Oct. 15 Holders of rec. Oct. 5
International Shoe Co.common (qua?.)
500.
Oct. 1 Holders of rec. Sept. 15
Finance Co. of Penna.(quar.)
Oet. 1 Holders of rec. Sept.17
$3
Preferred (monthly)
500 Oct. 1 Holders of roc Sept. 15
Firestone Tire & Rub Co.. corn.(guar.)25e. Oct. 20 Holders of rec. Oct. 5
Preferred (monthly)
50o Nov. 1 Holders of reo. Oct. 15
First Bank Stock Corp. (qual.)
1214o. Oct. 1 Holders of reo. Sept.20
Preferred (monthly)
50o Doe. 1 Holders of rec. Nov. 15
First Finance Co. of Iowa pt.(qUO
37140. Oot. 1 Holders of rec. Sept.28
International Silver CO. prof. (qua?.)... 11
Oct. 1 Holders of rec. Sept. 14
Class A & B (guar.)
3734e. Oot. 1 Holders of reo. Sept. 28
InterstateDept. Stores. pref. Wilma-- 51% Nov. I Holders of reo. Oct. 15
First National Stores common ((Mara -- 6251e Oct. 1 Holders of tee .Sept. 120 [mann* Corp.. let pref.(quar.)
$2
Oct.
1 Holders of rec. Sept. 15
7% 1st pf.(guar.).
15( Oct. 1 Holders of reo. Sept. 120 Investment Foundation, Ltd., pt.(qua_
87o Oct. 15 Holders of reo. Sept.30
Fisher Flour Mills, pref. (qua?.)
$151 Oct. 1 Holders of rec. Sept. 15
Investors Corp. of R. I.. $8 tat pt.(qu.) 8134 Oct. 1 Holders of rec.
Sept. 20
Fishman(M.H.), Inc., pf. A & B(MO $1.51 Oct. 15 Holders of rec. Oct. 1
Irving Air Chute Co.common (qua?.)
10c. Oct. 2 Holders of rec. Sept. 24
Florshelm Shoe Co.. $6 pref.(qmtr.).--- $1% Oct. 1 Holders of reo. Sept.15
Island Creek Coal Co.corn.(quar.)
50o. Oct. I Holders of rec. Sept. 22
Flour Mills of America, Inc., pf. A (on.). $1
Oct. 1 Holders of rec. Sept. 17
Preferred (quar.)
114 Oct. 1 Holder,of rec. Sept. 220
Food Mach.6 Si% pref.(monthly)
500. Oct. 15 Holders of rec. Oct. 10
Janss Invest. Corp. V)ol. A pf.(qua
5114 Oct. 1 Holders of rec. Sept.20
Fortnum & Mason. Inc.. 7% prof.(SAO 17140. Oct. 1 Holders of rec. Sept. 20
Jewel Tea Co.(qua?.)
81
Oct. 15 Holders of rec. Oct. 1
Foster Wheeler Corp.. pref. (quar.)..
$154 Oct. 1 Holders of rec Sep 12
Johns Manville Corp.7% pref.(quar.)
134 Oct. 1 Holders of rec. Sept.16
Franklin Process Co.(quar.)
25e Oct. 1 Holders of reo. Sept. 23
Jonos & Laughlin Steel Corp. pt.(guar.). 750 Oct. 1 Holders of rec. Sept.13
Freiman (A. J.) Ltd.6% cum.pf.(qu.). 134 Oct. 1 Holders of rec. Sept. 15
Kahn's (E.) Sons. pref. (quar.)
3151 Oct. 1 Holders of rec. Sept. 20
Prick Co..8% pref.(guar.)
75e. Oct. 1 Holders of rec. Sept. 20
Kalamazoo Vegetable Parchment (quar.)
15o. Dec. 31 Holders of reo. Dec. 21
Fuller Brush Co.. pref.(quar.)
$1,1 Oct. 1 Holders of rec. Sept. 23
Kaynee Co. preferred (quar.)
31% Oct. 1 Holders of rec. Sept. 20
Gannett Co. cum. pref. (guar.)
1% Oct. 1 Holders of rec. Sept. 15
Hats Drug Co.. pref. (quar.)
31%
Oct. 1 Holders of reo. Sept. 15
Gaurnont-British Picture. Ltd
riv 6
Kaufman (Chas. A.)6% pref.((Mara--- 114 Oct. 1 Holders of rec. Sept.24
Garlock Packing Co.. corn.(quar.)
100. Oct. 1 Holders of rec. Sept. 24
Kaufmann Dept. Stores. Inc.. pref.(au.) 31% Oct. 1 Holders of reo. Sept.
10
Inc..
Co..
6% Pf.
Oen.Amer.Inv.
5114 Oct. 1 Holders of reo. Sept. 20
Kek
Sugar Co.(monthly)
10o. Oet. 1 Holders of rec. Sept.25
8% preferred (guar.)
134 Oct. 1 Holders of rec. Sept.20
Kelley Island Lime & Transport Co.,
General Baking Co.,coin.(guar.)
500. Oct. 1 Holders of rec. Sept. 19
common (guar.)
250. Oct. 1 Holders of rec. Sept.24
Preferred (quar.)
$2
Oct. 1 Holders of rec. Sept. 19
Hemper-Tbomas Co.. COM.(qual.)
12140. Oct. I Holders of rec. Sept. 20
General Candy Corp., cl. A
h25c. Oct. 1 Holders of rec. Sept. 20
Common (qua?.)
12140.
Jan 113 Holders of rec. Dee. 20
General Electric Co., corn. (quar.)
100. Oct. 25 Holders of rec. Sept. 30
Preferred (quar.)
I% Deo. I Holders of reo. Nov. 2
Special stock (quar.)
15c. Oct. 25 Holders of rec. Sept.30
Keystone Cold Storage
81.25 Oct.' Holders of reo. Sept. 20
General Mach. Corp.7% pref.(qu.).134 Oct. 1 Holders of reo. Sept.20
K1mberly-Clark Corp., corn.(quar.).... 25e. Oct. 1 Holders of reo. Sept. 12
General Mills pref. (guar.)
$134 Oct. 1 Holders of reo. Sept. 144
Preferred(quar.)
$134 Oct. 1 Holders of reo. Sept. 12
General Motors Corp.. $5 prof.(guar-) - $1 Nov. 1 Holders of reo. Oct 10
Klein (Emil). corn.(qua.)
25e. Oct. 1 Holders of reo. Sept. 20
(guar.)
Ink,
Printing
pref.
General
$114 Oct. 1 Holders of rec. Sept. 17
Knapp-Monarch 333,' pref.(qua?.)
8151c
Oct. 1 Holders of rec. Sept. 19
Gen. Ry. Signal Co.. corn. (qua?.)
250. Oct. 1 Holders of rec. Sept. 10
Knudsen Creamery. class A & B (qual.). 37140. Nov.20 Holders of rec. Oct. 31
2114 Oct. 1 Holders of rec. Sept. 10
Preferred (guar.)
Koppers Gas & Coke Pref.(qual.)
1 Holders of reo. Sept. 10
Oct.
8134
Gibson Art Co.(guar.)
250. Oct. 1 Holders of rec. Sept. 20
Kroger Grocery & Baking87Ho. Oct. 1 Holders of roe. Sept. 17
Gilbert(A.C.) Co..$34 Pref.(quar.)
7% 2d preferred (quar.)
15( Nov. 1 Holders of rec. Oct. 20
Gillette Safety Razor $5 Pref•(guar.)1134 Nov. 1 Holders of rec. Oct. lo Lambert Co.,common (guar.)
Oct. 1 Holders of reo. Sept. 17
81
Glens Falls, Inc. (qua?.)
40c. Oct. 1 Holders of rec. Sept. 15
Lauded Banking & Loan Co.(qua?.)
$2
Oct. 1 Holders of rec. Sept. 15
Glidden Co.. pref. (quar.)
134 Oct. I Holders of reo. Sept. 16
Landers. Frary & Clark (qual.)
Dec. 31 Holders of roe. Dec. 21
62340.
Finance
Corp.(qM)-Globe Discount &
25e. Oct. 15 Holders of reo. Oct. 1
Lane Co.. Inc.((Mar.)
$114 Oct. 1 Holders of reo. Sept.24
Goldblatt Bros., Inc., corn. (quer.).--- 037 tic Oct. 1 Holders of rec. Sept. 10
Preferred (quar.)
$151 Oct. 1 Holders of rec. Sept.24
Goodyear Textile Mills. pref.(guar.).- $134 Oct. 1 Holders of rec. Sept. 20
Lane Cotton Mills Co.(quar.)
25e. Oct. 1 Holders of reo. Sept.
Goodyear Tire & Rubber Co.,Ist pf.(01.) $13' Oot. 1 Holders of rec. Sept. 1
Langendorf Co. Bak.. Inc.. cl. A (Qua- 25c. Oct. 15 Holders of rec. Sept. 23
30
Goodyear Tire & Rub.of Can.corn.(qua 1154 Oct. 1 Holders of rec. Sept. 15
Lams & Bros. Co. pref.((Mara
$2
Oct. 1 Holders of ree. Sept. 24
Preferred (quar.)
13154 Oct. 1 Holders of reo. Sept. 15
Class B (guar.)
$211 Oct. 1 Holders of ere. Sept. 24
Gorton-Pew Fish (quar.)
50e. Oot. 1 Holders of reo. Sept. 20
Lawyers
Title
& Guaranty (qua.)
31
Oct. 1 Holders of rec. Sept. 26
Gotham Silk Hosiery Co., Inc..7% pref
Lawyers Title Ins.(Rich. Va.) (s.-a.)-- - $3
Oct. 15 Holders of rec. Oct. 10
(guar.)
1,4 Nov. 1 Holders of roe. Oct. 11
Lawyers Westchester Mtge.& Title(qu.) $1
Oct. 1 Holders of reo. Sept. 17
Gottfried Baking Co..Inc.. Pref. (qua?.)
1% Oct. 1 Holders of reo. Sept. 20
Leader Flints/ Stations, pref.(qua.)
$1
Oct. 1 Holders of rec. Sept.23
Preferred (quar.)
13' Jan 213 Holders of rec. Dec. 20
Leggett (F. H. & Co.. pref.(qua?.).... 315( Oet. 1 Holders of reo. Sept. 24
-3 Dec. 29 Holders of rec. Dee. 28
Lehigh Forth Cement Co.(Pa.). PL(Qua 1134 Oot. 1 Holders of rec. Sept. 14
Preferred A and B (quar.)
2 Dec. 29 Holders of reo. Doe. 28
Lehman Corp.,capital stock (guar.).
60o. Oct. 5 Holders of rec. Sept.
Grant(W.T.) Co.. common((Mara-- 25e. et. 1 Holders of rec. Sept. 12
Liggett
& Myers Tob. Co.. pref.(Qua
$154 Oct. 1 Holders of reo. Sept. 20
12
Gt. W.Electro Chem.Co.6% tat pf.(qu.) 114 Oct. 1 Holders of rec. Sept. 20
Linde Alr Products. pref.(qua.)
51)4 Oct. 1 Holders of rec. Sept. 20
Great Western Sugar CO. prof. blustra
1114 Oct. 1 Holders of reo. Sept. 15
link Belt Co., corn. (quar.)
20e. Dec. I Holders of reo. Nov. 15
Graymur Corp. (quar.)
250. Oct. 1 Holders of rec. Sept. 15
preferred (qua?.)
614%
1
Oct.
1%
Holders of reo. Sept. 15
Great Western Life Assur. Co.(qual.).- $5
Oct. 1 Holders of reo. Sept.20
6 H % preferred (qua?.)
154 1-2-33 Holders of rec. Dee. 15
Great Lakes Engineering Works(qua 50. Nov. 1 Holders of reo. Oct. 24
Little Brown & Co.7% pref.(quar.).... 151 Oct. 31 Holders of rec. Oct. 31
Greening (B.) Wire Co.. Ltd.. pret.(q1.) I% Oct. 1 Holders of rec. Sept. 15
Lock Joint Pipe CO.. coin.(monthly)... 67e. Oct. 31 Holders of reo. Oct.
31
Grief (L.) & Bros. 7% Prot.(guar.)
1% Oct. 1 Holders of rec. Sept. 20
Common (monthly)
67e. Nov.30 Holders of rec. Nov. 30
Griggs Cooper & CO.,7% pref.(guar.).- 1% Oct. 1 Holders of rec. Oct. 1
Common (monthly)
660. Dee. 31 Holders of rec. Dec. 81
Gurd (Chas.)& Co.. Ltd., com.(qua?.). 250. Oct. 1 Holders of rec. Sept.15
Preferred (quar.)
Oct. 1 Holders of reo. Oct. 1
32
3151 Oct. 1 Holders of reo. Sept. 15
Preferred (guar.)
$2
Preferred (guar)
Jan 1'33 Holders of rec. Jan. 1
Hall Baking Co.. preferred (quar.)
8714c. Oct. 1 Holders of rec. Sept. 20
Loose-Wiles Biseutt. pref.(qur.)
$1 34 Oct. 1 Holders of rec. Sept. 19
Halle Bros. Co.. Pref.(guar.)
$154 Oct. 81 Holders of reo. Oct. 24
Lord & Taylor (qual.)
$2% Oct.! Holders of rec. Sept.19
Halold Co., common (quar.)
25e Oct. 1 Holders of rec. Sept. 15
Second preferred (quar.)
$2
Nov. 1 Holders of rec. Oct. 17
Common (extra,
250. Oct. 1 Holders of rec. Sep t.17
Lorillard Co. COM01011 (qua?.)
300. Oct. 1 Holders of rec. Sept. 15
Preferred (qua?.)
$151 Oct. 1 Holders of rec. Sept. 15
Preferred (quar.)
$IN
Oct.
1 Holders of rec. Sept. 15
Hammerrnill Paper Co.. pref. (quar.)_
$1.4 Oct. 1 Holders of rec. Sept. 20
Loudon Packing (gum)
6214c. Oct. 1 Holders of rec. Sept. 15
fiance (P. H.) Knitting Co.. Pref.(Qua- $1% Oct. 1 Holders of reo. Sept.20
Lucky Tiger Combination Gold MinesHanioal Bridge Co. (guar.)
$2
Oct. 20 Holders of rec. Oct. 10
Common (guar.)
30. Oct. 20 Holders of reo. Oct. 10
Hansen Glove, pref.(quar.)
3151 Oct. 1 Holders of rec. Sept. 20
Lumbermen's Insurance Co.(quar.)
3114 Oct. 15 Holders of rec. Sept. 30
Hardesty (R.) Mfg..7% pref.Mara194 Dec. 1 Holders of reo. Nov. 15
Lunkenheimer Co., prof.(qual.)
1%
Oct. I Holders of reo. Sept. 20
Hazel-Atlas Glass(quar.)
75e. Oct. 1 Holders of rec. Sept. 17
154 Jan 213 Holders of rec. Dec. 22
Preferred (guar.)
Extra
25e. Oct. 1 Holders of rec. Sept. 17
Lycoming Mfg. Co.8% pref.(guar.).- 2
Oct.
1 Holders of rec. Sept. 26,
common
Co.
(qua?.).. $1% Oct. 1 Holders of rec. Sept. 10
Helme (Geo. W.)
MacA ndrews & Forbes common (qu.).
250. Oct. 15 Holders of rec. Sept. 30a
Preferred (qua?.)
OM Oct. 1 Holders of rec. Sept. 10
Preferred (guar.)
$114 Oct. 15 Holders of rec. Sept. 30a
Hewitt Bros. Soap. preferred (quar.)
2 Oct. 1 Holders of rec. Sent.30
Mackay Companies pref.(qua.)
Oct. 1 Holders of rec. Sept. 22
$1
Preferred (guar.)
2 Jan 113 Holders of rec. Dec. 20
Macy (It. H.)& Co.. corn.(qugr.)
500. Nov. 15 Holders of rec. Oct. 21
Heyden Chemical Co., pref. (quar.)- - $1% Oct. 1 Holders of reo. Sept.22
Magma Copper Co.(quar.)
1214e
Oct.
15 Holders of rec.
30
Co.(mthly)
Bartlett
&
Hibbard, Spencer.
10c. Oct. 28 Holders of rec. Oct. 21
Magnin (I.) & Co..6% prof.(quar.)---- 114 Nov. 15 Holders of rec. Sept.
Nov. 5
:Monthly
10c. Nov. 25 Holders of rec. Oct. 18
Majestic Royalty (quar.)
2e. Oct. 1 Holders of rec. Sept. 24
M on th I y
10c. Dec. 30 Holders of rec. Oct. 23
Manischewitz (B.) & Co. pref. Wilma-- $1% Oct. 1 Holders of rec. Sept.
20
Hickok Oil Corp. 7% pref.(guar.)
I% Oct. I Holders of rec. Sept. 28
Mammy 011Corri.(quar.)
25c. Oct. 10 Holders of rec. Sept. 20
Hires(Chas. E.) & Co..corn. Cl. A (qu.)
500. Dec. 1 Holders Of MC. Nov.15
Marlin Rockwell Corp.common (guar.)
250. Oct.
Holders of rec. Sept. 22
HollingerCOI1801. Gold Mines. Ltd.Mathleson Alkali Wks., Inc.cons.(qu.) 3754e. Oct.
Holders
of
rec. Sept. 12a
150. Oct. 6 Holders of rec. Sept. 22
Monthly
Preferred (quar.)
519( Oct.
Holders of rec. Sept. 12a
Holmes(D. H.) Co.. Ltd.(quar.)
$134 Oct. 1 Holders of rec. Sept. 24
McCall Corp.(quar.)
500. Nov.
Holders of rec. Oct. 15
Honolulu Plantation (monthly)
250. Oct. 10 Holders of reo. Sept.30
McColl Frontenac 011.6% pref. (qua?.)
114 Oct. 1 Holders of rec.
Sent. 30
Horn & Harden Baking (Phila.),(quar.) $15•4 Oct. 1 Holders of rec. Sept. 20
McKee (A. G.) class B (qua?.)
500. Oct.
Holders of rec. Sept. 20
Holly Development Co.(quar.)
2Ho. Oct. 15 Holders of rec. Sept.30
McKeesport Tin Plate, corn.(quar.)- - 31
Oct.
Holders of rec. Sept. 12
Household Finance Coro.McLeod Building Ltd., pref.(luer.)---- 31% Oct.
Common. Class A & B (guar.)
90e. Oct. 15 Holders of roe. Sept.300 MrQuay Norris Mtg. Co.corn.
750. Oct.
Holders of rec. Sept. 22
Part. preferred (quar.)
$1.05 Oct. 15 Holders of rec. Sept. 30a Mead Johnson & Co., common (guar.).750. Oct.
Howe Sound Co.capital stock (guar.)._
10o. Oct. 15 Holders of rec. Sept. 30a Mercantile Amer. Realty 11% pref.(qu.). 114 Oct. 1 Holders of rec. Sept. 15
Holders
of roe. Oct. 15
Bros.
(Cum.)
Co..
7% 1st Pref.
Howes
- 1% Oct. 30 Holders of rec. Oct. 20
MerchantsNat. Realty prof. A & B (qu.) $1% Oct.
Holders of rec. Sept. 25
7% preferred (qua?.)
1% Oct. 80 Holders of rec. Oct. 20
Merck Corp. pref. (quar.)
Oct.
$2
Holders of reo. Sept. 17
114 Oct. 30 Holders of rec. Oct. 20
6% preferred (quar.)
Preferred (guar.)
22
1-2-33 Holders of reo. Dee.
Humble Oil& Refg. Co.(qua?.)
17
50e. Oct. 1 Holders of rec. Sept. 1
Mesta Machine Co. common (qua?.)
25e. Oct.
Holders of roe. Sept .16
Hunts. Ltd.. class A & B (qua?.)
250. Oct. 1 Holders of rec. Sept. 17
Preferred bluer.)
$1%
Holders of rec. ept. 16
Erie
Mtge.(QOM%)
Huron &
32 Oct. 1 Holders of rec. Sept. 15
Metal Package Corp. common (qual.).. 31
Oct.
Holders
of
reo. Sept. 12
Huyler's of Del.. Inc.. 7% Pref. (qua?.) 151 Oct. 1 Holders of rec. Sept. 15
Metal & Therm't Corp. pref.(qt.ar.)
31% Oct.
Holders of reo. Sept. 20
Ifygrede Sylvania Corp.common (quar.) 50c. Oct. 1 Holders of rec. Sept. 100 Metropolitan lee Co.. pref.(qua?.)
3151 Oct.
Holders of roe. Sept. 15
Preferred (quar.)
$114 Oct. I Holders of rec. Sept. 106
Extra
30o. Oct.
Holders of ree. Sept. 15
25e. Oct. 1 Holders of rec. Sept. 15
Ideal Cement Co. capital stock (qua?.)..
Metropolitan Paving Brick Co.(guar.).- 3151 Oct.
Holders of reo. Sept. 15
Ideal Finance Assoc. class A (quar.).... 12%c Oct. 1 Holders of rec. Sept. 15
Mexican Petroleum Co.(Del.)(qu.).
$2
Oct. 20 Holders of rec.
Sept.80
Convertible preferred (qua?.)
50e. Oct. 1 Holders of rec. Sept. 15
Midland & Pacific Grain. pref. (guar.)._ $154 Oct.
Holders of rec. Sept.24
$2
Preferred (guar.)
Oct. 1 Holders of rec. Sept. 15
Midland Steel Prod., 8% pref. (quar.)
2 Oct.
Holders of rec. Sept.20
Imperial Chemical Ord.
Midvale Co.: capital stock
75
Oct.
Holders of rec. Sept. 17
xw234 Dee. 1
Ord I nary shares
Miller & Her., Inc.. $314 Prof. (glari-- 515e. Oct.
Holders of reo. Rept. 15
American deposit receipts ord. shares- zre254 Dec. 8 Holders of reo. Oct. 14
Minneapolis Honeywell Reg..6% PL(W) 1% Oct.
Holders of rec. Sept. 20
3754c. Oct. 1 Holders of MO. Sept.25
Income Leaseholds (quar.)
Minnesota Min. & Mfg. Co.(guar.).- 1214 Oct.
of rec. Sept. 20
Incorporated Investors (qua?.)
25c. Oct. 15 Holders of reo. Sept. 20
Mo. River SIOUX City ridge Co.. pf.(qu.) $14 Oet. 1 Holders
Holders of roc Sept.:10
Common, in stock (8.4i
.234 Oct. 15 Holders of rec. Sept.20
Mitchell (J. B.) & Co., Ltd.. pref. (qu.)_ 87140 Oct.
Holders of reo. Sept. 16
Nome of Company.
Name of ComPonb.
Financial Chronicle
Volume 135
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Monagnan (Victor) pref. (guar.)
$1% Oct. 1 Holders of rec. Sept. 19
Monarch Mortgage & Investments, Ltd.
preferred (guar.)
1
Oct. 15 Holders of rec. Sept.30
Monroe Chemical Co. pref.(guar.)
87140 Oct. 1 Holders of too. Sept. 15
Monsanto Chemical Works(guar.)
31%c. Oct. 1 Holders of rec. Sept. 10
Montreal Breweries. Ltd.. COM.(guar.).
44c. Oct. 1 Holders of rec. Sept.15
Moody's Investors Service, pt.(au.).-75e. Nov.15 Holders of rec. Nov. 1
Moore Corp.. Ltd., pref. A & B (gu.).-- 3134 Oct. 1 Holders of rec. Sept. 22
Morris(Philip) & Co., Ltd.(guar.)
250. Oct. 15 Holders of rec. Oct. 4
Morris (Philip) Comet.. Inc.,cl A (gu.) 43Sde. Oct. 1 Holders of rec. Sept. 20
Class A (guar.)
(a43he Oct. 1 Holders of rec. Sept. 20
Morris 5 & 100. to $1. Stores,7% PL(0/11.)
Oct. 1 Holders of rec. Sept. 20
Morels Plan Corp.of Am.6% p1.(go.)..
150 Oct. 1 J olders of rec. Sept.23
Morrison Cafe. 7% pref. (goar.)
1% Oct. 1 Holders of rec. Sept. 24
Motor Products Corp. (guar.)
500. Oct. 1 Holders of tea. Sept 20
Mountain Producers Corp. (guar.)
20e Oct. 1 Holders of roe. Sept. 15a
Murphy (G. C.) Co. pref.(guar.)
$2
Oct. 3 Holders of rec. Sept. 22
Murray (J. H.) Mfg., prof. (guar.)
$2
Oct. 1 Holders of rect. Sept.20
Mutual Chemical of Amer.. pref.(go.)
$1 14 Dec. 28 Holders of rec. Dee. lb
NashuaGummed & Coated PaperPreferred (guar.)
$I% Oct. 1 Holders of tee. Sept. 24
National Battery Co., pref. (guar.)__..
550 Oct. 1 Holders of rec. Sept. 15
National Biscuit Co.. corn.(guar.)
70o Oct. 1
Holders of rec. Sept. 15a
National Breweries, Ltd., corn.(guar.)_ 140c Oct. 1 Holders of rec. Sept. 15
Preferred (guar.)
t 44c Oct. 1 Holders of rec. Sept. 15
National Candy Co., corn. (guar.)
25e. Oct.
Holders of roe. Sept. 13
1st & 2nd preferred (guar.)
81% Oct.
Holders of rec. Sept. 13
National Casket Co., Inc. corn.(1.-a.).- $134 Nov. 15 Holders of rec. Oct. 29
National Dairy Prod. Corp.. corn.
50e. Oct. 1 Holders of rec. Sept. 5
Class A & B preferred (guar.)
$1% Oct. 1 Holders of roe. Sept. 5
National Distillers Products. prof
50e. Oct. 1 Holders of tee. Sept. 15
Preferred (guar.)
624e Oct. 1 Holders of roe. Sept. 21a
National Finance of Amer.. corn.(guar.)
lee. Oct. 1 Holders of too. Sept. 10
Preferred (guar.) & Extra
lbo Oct. 1 Holders of rec. Sept. 10
National Gypsum Co., pref. (gust.)... $1% Oct. 1 Holders of
ree. Sept. 20
National Lead, Prof. al. B (guar.)
51% Nov. 1 Holders
tee. Oct. 21
National 011 Prod. Co.. Inc., $7 pt.(gu.) 31% Oct. 1 Holders of
of rec. Sept. 20
National Refining. pref. (guar.)
Oct. 1 Holders of rec. Sept. 15
$2
National Screen Service (guar.)
50c. Oct. 1 Holders of rec. Sept. 20
National Steel Car Corp.(guar.)
t 200. Oct. 1 Holders of rec. Sept.20
National Sugar Red. Co.of N.J.(qU.)-50e. Oct. 1 Holders of rec. Sept. 1
National Tea Co.. common (guar.)
150. Oct. 1 Holders of rec. Sept. 14
Nation-Wide See. Co., Inc., Init. (gtI.)120. Oct. 1 Holders of rec. Sent. 15
Naum kens Steam Cotton (guar.)
75e. Oct. 1 Holders of rec. Sept. 24
Neptune Meter. pref (guar.)
2
Nov. 15 Holders of rec. Nov. 1
New England Equity Prof.(guar.)
Oct. 1 Holders of rec. Sept. 150
$2
New England Grain Prod.. $7 Pref.(qu.) $1% Oct. 1 Holders of tee. Sept.20
57 preferred (guar.)
$14 fan 2'33 Holders of rec. Dec. 20
56 preferred A (guar.)
$14 Mt. 15 Holders of rec. Oct
1
$6 preferred A (guar.)
$114
15•33 Holders of rec. Jan 1'33
New York Shipbuilding Co.. Pref.(gu.). $14
mt. I Holders of rec. Sept 20
New York Sun, Inc., 8% pref. (S.-a.)-- 4
Mt. 1 Holders of rec. Sept. 30
New York Transit (guar.)
20( ire, 15 Holders of rec. Sept. 23
Extra
10. ire. 15 Holders
rec. Sept. 23
New York Trap Rock.57 pref. (guar.)._ $14 Mt. 1 Holders of
of rec. Sept. 20
Newberry (J• J.) Co., common (gust.).. 27% ict. 1 Holders of tee. Sent 16
Newberry (J. J.) Realty 634% pt.(gu.).
lov. 1 Holders of rec. Oct. 15
13% preferred (guar.)
134 Nov. 1 Holders of rec. Oct. 15
Niagara Alkali Corp.. Prof.(guar.)
$1% let. 1 Holders of rec. Sept. 22
Niagara Shares Corp.(Md.)Clam A, preferred (guar.)
$14 Oct. I Holders of rec. Sept. 16
Class A preferred (guar.)
$1% lan31 Holders of rec. Dec. 16
Nicholson File Co., cap. stk.(quar.)__ ......Oct. 1 Holders of
rec. Sept. 200
Norfolk & Wash. Steamboat Co. (gu.). $2
Oct.
North Amer. Creameries, Inc., el. A (gu) 35e Oct. 1 Holders of rec. Sept. 20
Holders of rec. Sept. 15
North American Finance, el. A (guar.).500. Oct.
Holders of rec. Sept. 24
7.4 preferred (guar.)
87%o. Oct.
of rec. Sept. 24
North Central Texas 011 Co., Prof.(gu.) $1% Oct. 1 Holders
Holders of rec. Sept. 10
North Star 011, Ltd. pref. (guar.)
1% Oct. 1 Holders of rec. Sept 15
Northland Greyhound Lines. prof.(WO - 81% Oct. 1
Holders of rec. Sept. 20
Northwest Bancorporation corn.(guar.).
15c. Oct. 1 Holders of rec. Sept. 20
Norwalk Tire dz Rubber Co., pref. (go.)
Oct. 1 Holders of too. Sept. 23
Norwich Pharmacal Co., esp.stk.(gu.)- SI
Oct.
Holders of reo. Sept. 20
Novadel-Agene Corp., common (quar.)- 81
Oct. 1 Holders of rec. Sept. 21
Preferred (guar.)
8)4 Oct.
Holders of rec. Sept. 21
Oceanic 011 Co. (guar.)
2o. Oct.
Holders of rec. Sept. 27
Ogilvie Flour Mills Co., Ltd.. corn.(gu.'($2
Oct. 1 Holders of rec. Sept. 22
Ohio Finance Co., common ,quarterly,
500. Oct. 1 Holders of rec. Sept. 10
8% Preferred (guar.)
Oct. 1 Holders of rec. Sept. 10
2
Class A (guar.)
2
Oct. 1 Holders of rec. Sept. 10
Ohio Leather Co., corn,(guar.)
25e. Oct. 1 Holders of rec. Sept. 20
let preferred (guar.)
$2
Oct. 1 Holders of rec. Sept. 20
2nd preferred (guar.)
1114 Oct. 1 Holders of rec. Sept. 20
Ohio Wax Paper (guar.)
40o. Oct. 1 Holders of rec. Sept. 20
Old Colony Trust Assoc.(gum)
15c. Oct. 1 Holders of rec. Sept. 15
Old Line Life Ins. Co. of Am.(gust.)...
25e. Oct. I Holders of rec. Sept. 15
Omnibus Corp.. pref. (guar.)
$2
Holders of rec. Sept. 15
Oct.
Oneida Knitting Mills. pref. MAO-- 51% Oct. 1 Holders of rec. Sept.
20
Ontario Loan & Debenture (guar.)
81)4 Oct. 1 Holders of rec. Sept. 15
Ontario Mfg. Co.common (guar.)
124c Oct. 1 Holders of rec. Sept. 20
Preferred (guar.)
$1% Oct. 1 Holders of rec. Sept. 20
Otis Elevator Co., COE0.(guar-)
25c Oct. 15 Holders of rec. Sept. 30
Preferred (guar.)
$154 Oct. 15 Holders of rec. Sept. 30
Owens Illinois Glass Co., corn.(gust.)..
500 Nov.15 dHolders of rec. Oct. 29
Preferred (guar.)
Ill% Oct. 1 Holders of rec. Sept. 15
Preferred (quar.)
$1% 1-1-33 Holders of rec. Dec. 16
Pacific Finance Corp.common (gust.)..
50 Oct. 1 Holders of rec. Sept. 15
Pacific Indemnity (guar.)
35o Oct. 1 Holders of rec. Sept. 15
Pacific Mutual 1.1fe Ins. Co.(guar.)....
50e Oct. 1 Holders of rec. Sept. 20
Package Machinery, let pref.(guar.)
1% Nov. 1 Holders of tee Oct 20
Page-Hersey Tubes,Ltd.. pref.(guar.)...($14 Oct. 1 Holders of rec. Sept.
21
Common (guar.)17be Oct. 1 Holders of rec. Sept. 21
Pennsylvania Co. for Ins. (guar.)
75o Oct. 1 Holders of too. Sept. 15
Pennsylvania Salt Mfg. Co.(gust.)....
750 Oct. 15 Holders of rec. Sept. 30
Pennsylvania Warehousing & Safe Deposit (guar.)
91% Oet. 1 Holders of rec. Sept. 24
Peoples Drug Stores common 'guar.)
260. Oct. 1 Holders of rec. Sept 8
Perfect Circle Co.. common (gust.)
500. Oct. 1 Holders of tee. Sept. 17
Perfection Petroleum pref.(guar.)
37%c Oct. 1 Holders of rec. Sept. 28
Pet Milk Co.. prof. (guar.)
$1% Oct. 1 Holders of ree. Sept. 10
Peter Paul (guar.)
15e. Oot. 1 Holders of rec.
Philadelphia Dalry Prod.. Pf.(guar.).- 21% Oct. 1 Holders of rec. Sept. 20
Sept. 19
Pioneer Gold Mines (guar.)
130. Oct. 1 Holders of too. Sept. 12
Pioneer Mill Co., Ltd. (monthly)
5o. Oct. 1
Pitney Bowes Postage Meter Co.(s-a)
Oct. 1 Holders of tee. Sept. 15
/2
PIttsburgh-Erie Saw Corp. (guar.)
37340. Oct. 1 Holders of rec. Sept. 20
Pittsburgh Plate Glass coin. (gust.)
25e. Oct. 1 Holders of rec. Sept. 10
Plume & Atwood Mfg. (guar-)
600. Oet. 1 Holders of reo. Sept. 24
Plymouth 011 Co. (guar.)
25e. Oct. 1 Holders of rec. Sept. 17
Pneumatic Scale Corp., pref.(gust.).... 17%c Oct. 1 Holders of
rec. Sept.23
Pollock Paper & Box. Prof.(guar.)
$14 Dec. 15
polygraphic Co.of Am. pref. Mari-- $2
Oct. 12 Holders of rec. Sept, 30
Powdrell & Alexander pref. (guar.)
$1% Oct. 1 Holders of rec. Sept. 22
Pratt & Lambert, Inc.. corn. (gust.)
25e. Oct. 1 Holders of roe. Sept. 16
Premier Gold MM. Øo.. Ltd. (guar.)___
80. Oct. 5 Holders of rec. Sept. 16
Prosier & Gamble Co..8% pref.(gust.).
2 Oct. 15 Holders of rec. Soot. 24
Provincial Paper. Ltd.. Prof. (gust.)...
Oct. I Holders of rec.
Prudential Investors. Inc.. $6 Pf.(Qua-- 91% Oct. 15 Holders of rec. Sept. 15
Sept. 30
Publication Corp.. orig. pref.(gust.)... sig Oct.
Holders of rec. Sept. 20
Pullman. Inc. (quar.)
750. Nov.1 Holders of tee. Oct. 24
Pure 011 Co.. 514% pref. (guar.)
Holders of rec. Sept 9
154 Oct.
8% preferred (guar.)
Holders of roe. Sept. 9
Oct.
8% preferred (guar.)
Holders of ree. Sept. 9
2
Oct.
Puritan Ice Co., pref. (semi-ann.)
Dee.
Holders of rec. June 30
$4
Quaker Oats, common (guar.)
Holders of tee. Oct. 1
51 ()et. 1
6% preferred (guar.)
1% Nov.30 Holders of rec. Nov. 1
Rath Packing. common (gust,)
600. Oct. 1 Holders of rec. Sept. 20
Reece Folding Mach (gust.)
50. Oct. 1 Holders of rec. Sept. 160
Reliance Mfg. Co.01 111., pref.(gust.).. $1
Oct. 1 Holders of tee. Sept. 20
Republic Stamp.& EnamellrULcom.(qu.) 25e. Oct. 10 Holders of rec. Oct. 1
Name of Company.
2293
When
Per
Cent. Payable.
Books Closed
Days Inclustve.
Miscellaneous (Continued).
Reversible Collar Co. (guar.)
$1
Oct. 1 Holders of re0. Sept.20
Reynolds(R.
Tobacco CO.(gust.)...
75e. Oct. 1 Holders of tea. Sept. 17
Rhode Island Elect. Protect. (guar.)
21
7%
5c.0ct. 1 Holders of re*. Sept. 15
Richman Bros. Co., common (guar.)...
Holders of rec. Sept. 23
Rice Stir Dry Goods 1st pref.(guar.)
51% Oct. 1 Holders of rec. Sept. US
2nd preferred (guar.)
$1% Ore. 1 Holders of rec. Sept. 15
Rite Kumler Co.. pref. (guar.)
$134 Oct. 1 Holders of rec. Sept.23
Riverside Silk Mills, Ltd., class A
25c. Oct. 1 Holders of rec. Sept. 15
Robinson Consolidated Cone (goal.)...
25e. Oct. 1
Quarterly
$2
Oct. 1 Holders of rec. Sept. 25
Rockville-Billimantio.Mfg. Co.
7% preferred (guar.)
1% Oct. 1 Holders of NO. Sept. 15
6% Preferred (guar.)
134 Oct. 1 Holders of rec. Sept. 15
6-7% preferred (guar.)
1% Oct. 1 Holders of rec. Sept. 15
Ross Gear & Tool Co.(gum.)
30e. Oct. 1 Holders of tee. Sept. 20'
Royal Baking Powder corn.(guar.)
25e. Oct. 1 Holders of rec. Sept. 6
6% preferred (guar.)
1% Oct. 1 Holders of rec. Sept. 6
Rumford Print Co.(guar.)
21
Oct. 1 Holders of rec. Sept.15
Sabin Robbins Paper Co.. prof.(guar.).- 314 Oct. 1 Holders of
rec. Sept. 23
Safeway Stores. Inc., corn.(guar.)
5114 Oct. 1 Holders of rec. Sept. 19
7% preferred (guar.)
1% Oct. 1 Holders of rec. Sept. 19
6% preferred (guar.)
1% Oct. 1 Holders of rec. Sept. 19
St. Louis National Stockyards (guar.). $2
Oct. 1 Holders of rec. Sept. 25
Santa Cruz Portland Cement CO.(gu.).. $1
Oct. 1 Holders of rec. Sept. 23
Sayers & ScovIll Co.. corn (guar.)
1% Oct. 1 Holders of rec. Sept. 20
Preferred (quarterly)
134 Oct. 1 Holders of rec.
Schoeneman (J.). Inc., 1st pref. (guar.). $14 Oct. 1 Holders of rec. Sept. 20
Sept. 19
Schwartz (B.) Cigar, $2 pref. (guar.).- 5250. Oct. 1 Holders of
rec. Sept.20
Scott Paper Co.. 7% set. A pref.(q.).- 1% Nov. 1 Holders of
roe. Oct. 17
6% series 13 preferred
1% Nov. 1 Holders of toe. Oct. 17
&evil' Mfg. Co. (guar.)
250. Oct. 1 Holders of rec. Sept. 15
Seaboard National Securities CO.(cp.).25c Oct. 1 Holders of too. Sent.20
Seagreve Corp. pref. (guar.)
$14 Oct. 1 Holders of rec. Sept.20
Security Investment, St. Louis(guar.)._ 500. Oct. I Holders of
rec. Sept. 21
Selected Industries, Inc.,$
$114 Oct. 1 Holders of roe. Sept. I6a
Full paid allotment certificates
314 Oct. 1 Holders of roe. Sept. 16
Servel. Inc.. preferred (guar.)
514 Nov. 1 Holders of tee. Oct 90
Shattuck (Frank G.) (guar.)
1234e Oct. 10 Holders of reo. Sept. 20
Shawmut Association (guar.)
15e Oct. 1 Holders of rec. Sept. 160
Silverwood's Dairies, Ltd., prof.(guar.)- hl% Oct. 1 Holders of
rec. Sept. 17
Slattery (E. T.) Co., pref. (guar.)
$14 Oct. 1 Holders of rec. Sept. 24
South Porto Rico Sugar Co., corn.(BL).
400 Oct. 1 Holders of rec. Sept. 10
Preferred (guar.)
2
Oct. 1 Holders of rec. Sept. 10
Southern Acid & Sulphur prer. (guar.,134 Oct. 1 Holders of rec. Sept. 26
Southland Royalty Co.(guar.)
50 Oct. 15 Holders of rec. Oct. 1
Southw. Penna. Pipe Lines(gu.)
Oct. 1 Holders of rec. Sept. 15
81
Spicer Mtg. Corp., 33 pref. (guar.).75o Oct. 15 Holders of me. Oct. 3
Standard Brands. Inc.. corn. (guar.)...
30c Oct. 1 Holders of rec. Sept.
$7 cum.class A pref.(guar.)
•um xt. 1 Holders of rec. Sept. 6
Standard Fuel Co., 6)4% pref. (gust.).
mt. 1 Holders of rec. Sept. 15
Standard 011 of Ohio, corn.(guar.)
3754. ict. I Holders of rec. Sept. 15
Preferred (guar.)
9154
mt. 15 Holders of toe. Sept. 30
Standard Screw Co.common(guar.).50r Mt. 1 Holders of rec. Sept. 16
Standard Steel Const Co I.td. A(qua75, mt. 1 Holders of rec. Sept. 9
Stanley Works common (guar.)
250 Oct.
Holders of rec. Sept. 20
Preferred (guar.)
37
Vey.1 Holders of rec. Nov. 5
Star Oil. Ltd.. pref. (gum.)
8,4c Oct.
Holders of rec. Sept. 15
State & City Build. Corp.. pref. (gu.).. 2114 Oct.
Holders of rec. Sept. 20
State Theatre Co.. pref. (guar.)
Oct.
$2
Holders of rec. Sept. 24
Steel Co. of Canada. corn. & pref.(gu.)- £4134 Nov. 1 Holders of rec. Oct.
7
Stein (A.) & Co., pref.(guar.)
81% Oct. I Holders of rec. Sept. 15
Sterling Pacific 011 Co.. Ltd
2 14c Oct. 15 Holders of rec. Sept- 30
Stir Baer & Fuller. 7% prof.(guar.)
434c DM 31 Holders of rec. flea. 15
Sunshine Biscuits. prof. (guar.)
51% 'Mt. 1 Holders of rec. Sept.19
Superheater Co. (guar.)
25e. Oct. 15 Holders of rec. Oct. 5'
Superior Portland Cement Co.
Class A (monthly)
2754r Oct. 1 Holders of rec. Sept.23
Supertest Petrol. Corp., Ltd..corn.(go.)
215e Oct. 1 Holders of rec. Sept. 16
Ordinary (guar.)
23e. Oct. 1 Holders of rec. Sept. 16
Class A preferred (guar.)
31% Oct. 1 Holders of rec. Sent. 16
Class 13 preferred (guar.)
3714€' Oct. I Holders of rec.
16
TaCony-Palmyra Bridge. 734% pf.(gu.) 1% Nov. 1 Holders of rec. Sept.
Oct. 10
Tamblyn (B.). Ltd.. Pref. (guar.)
Oct. 1 Holders of rec. Sept.24
8114
Taylor-Colguitt, preferred (guar.)
31% Oct. 1 Holders of rec. Sept. 27
Taylor Milling Corp.(guar.)
15e.00t. 1 Holders of rec. Sept. 10
'reek-Hughes(Mid Mines. Ltd.(guar.)._ £15.Nov. 1 Holders of rec. Oct. 15
Telautograph Corp.. cap.stk.(guar.).25o Nov. 1 Holders of rec. Oct. 15
Texas Corp (guar.)
25e Oct. 1 Holders of too Sept. la
Texas Gulf Producing Co.
.2)4001. 15 Holders of rec. Sept.30
Payable in stock
1114 Oct. 15 Holders of rec. Sept.30
Textile Ranking Co.(guar.)
500.00*. 1 Holders of rec. Sept. 21
Thompson (John R.)(guar.)
25e. Oct. I Holders of rec. Sept. 23
Thompson's Spa, Inc., pref. (gust.).... 81% Oct. 1 Holders of
rec. Sept. 10
Thrift Stores. Ltd..6 Si% let pref.(qu.
1% Oct. 1 Holders of rec. Sept. 20
2nd preferred (guar.)
1% Oct. I Holders of rec. Sept.
Tide Water Assoc. Oil, prof. (gust.)... $134 Oct. I 'Holders of rec. Sept. 20
17
Tip Top Tailors. Ltd.. 7% Pref.(guar.).
I% Oct. 1 Holders of rec. Sept.
Toronto Elevators, Ltd., pref.(gnat.).. 8134 Oct. 15 Holders of rect. Oct. 15a
1
Toronto Mtge. Co.(guar.)
3
oct. 1 Holders of rec. Sept. 15
Torrington Co. (guar.)
75e. Oct. 1 Holders of roe. Sept. 19
Travelers Insurance Co.(guar.)
$4
Oct. 1 Holders of rec. Sept. 19
TrIco Products (guar.)
6234e. Oct. 1 Holders of rec. Sept. 16
Trumbull-Cliffs Furnace,6% of.(qu.)
1% 001. 1 Holders of rec. Sept. 15
Trustees System of Baltimore pref
1)4 Oct. 1 Holdeis of rec. Sept. 15
Preferred (guar.)
75e. Oct. 1 Holders of rec. Sept. 15
TCLISIOES System of Indiana pref
154 Oct. 1 Holders 01 rec. eept. 15
Preferred (guar.)
750. Oct.
Holders of tea. Sept. 15
Trustees System of Indianapolis prof....
Si Oct.
Holders of ree. Sept. 15
Preferred (guar.)
134 Oet.
Holders of rec. Sept. 15
Trustees System of Louisville pref
Holders of ree. Sept. 15
154 Oct.
Preferred (guar.)
1% Oct.
Holders of tee. Sept. 15
Trustees System Discount of Chi. pref._ j34 GotHolders of rec. Sept. 15
Preferred (quar.i
114 Oct. 1 Ho,ders of rec. Sept. 15
Trustees System Service pref.(guar.).- 2
Pet. 1 Holders of rec. Sept. 15
Tublze-Chatillon Corp.. pref.(guar.)._
134 Oct. 1 Holders of rec. Sept. 20
Union Carbide & Carbon Corp.(guar.)_
30c Oct. 1 Holders of rec. Sept. 2
Union Storage (guar.)
62146. Nov.10 Holders of too. Nov. 1
United Aircraft & Transport Corp.
6% preferred (guar.
75e Get. 1 Holders of ree. Sept.10
United Dyewood, pref.(guar.)
$1% Oct. 1 Holders of rec. Sept. 19a
United Fruit Co. (gear.
50e Oct. 1 Holders of tee. Sept
United Linen Supply class A (gust.).... 87 Ke Oct. 1 Holders of rec. Sept. In
20
United Loan corp.(guar.)
81% Oct. 1 Holders of
United Piece Dye Works. pref.(guar.).. 1% Oct. I Holders of rec. Sept. 20
rec.
Sept.
204
Preferred (guar.)
Jan.2113 Holders of rec. Dec. 22
United Profit Sharing Corp.. Pt.(s.-a.).. 5
Oct. 31 Holders of rec. Sent. 30a
United Shoe Machinery common (guar.) 6254c Oct. 5 Holders of
rec. Sent. 20
Preferred (guar.)
37 lac Oct.
Holders of rec. Sept. 20
United States Banking Corp.(monthly).
70e. Oct. 1 Holders of rec. Sept. 17
United States Foil Co.. corn. A & B (au.) 7340.001. 1 Holders of
rec. Sept. 150
Preferred (guar.)
91% Oct. 1 Holders of rec. Sept. 15a
U.S. Gypsum,common (gust.)
40e Oct. I Holders of rec. Sept. 15
Preferred (guar.)
$1% Oct. 1 Holders of rec. Sept. 15
U. S. Leather Co., prof. (guar.)
134 Oct. 1 Holders of rec. Sept 10
U.S. Pipe & Fdy.. corn.(guar.)
50c Oct. 20 Holders of rec. Sept 300
Common (guar.)
50e ..ln.20'33 Holders of rec. Dee. 310
First preferred (guar.)
30c Oct. 20 Holders of rec. Sept. 30a
First preferred (guar.)
30e. Jn.2013 Holders of rec. Dec. 310
United States Playing Card Co..(quar.)
25e Oct. I Holders of rec. Sept. 20
United States Shares Corp.sex. C 1 reg.. 13.3c Oct. 1
Holders of rec. Sept. 1
Series C 2 tog
12.9e Oct. 1 Holders of roe. Sept. 1
Series A reg
11.3c Oct. 1 Holders of rec. Sept. 1
Series A I reit
110. Oct. 1 Holders of rec. Sept. 1
U. S. Smelting. Ref. & Mining Co.
Common (guar.)
25e. Oct. 15 Holders of tee. Oct. 3
Preferred (guar.)
1%
15 Holders of rec.(let. 3
United States Tobacco Co.. corn.(go.).. 21.10 Oct.
Oct. 1 Holders of tea. Sept.19
Preferred (guar.)
21% Oct. 1 Holders of rec. Sept. 12
Universal Leaf'rob. Co.. corn.(gust.)..
50e. Nov. 1 Holders of tee. Oct. 19
Preferred (guar.)
$2
Oct. 1 Holders of rec. Sept. 21
Name of Company.
Per
When
Cent. Payable.
Miscellaneous (Concluded).
Universal Pictures Co., Inc., 1st pf.(qu.) $2
Oct. 1
Universal Products
100. Oct. 1
$2
Oct. 1
Upressit Metal Cap. Corp.. Pref.(qu.)
SiM Oct. 1
Viau Biscuit Corp., Ltd., pref. (qu.).
Van Dusen-Harrington, Inc.. pref. (qtr.) SI.M Oct. 1
Vortex Cup Co., class A (guar.)
62340. Oct. 1
Common (guar.)
25e. Oct. 1
Vulcan Detinning Co.. prof (quar.)......
185 Oct. 20
Wagner Electric Co. pref. (guar.)
$134 Oct. 1
Waldorf System Inc. (quar.)
37 Me. Oct. 1
Walgreen Co., preferred (guar.)
$134 Oct. 1
Wallace Sand Quarries. Ltd.. pi. (8.-a.)_ 31 15 Oct. 13
Ward Baking Corp.. pref.(guar.)
1
Oct. 1
Waukesha Motor, corn. (guar.)
50c. Oct. 1
Weinberger Drug Stores. Inc., cool.(qu)
25e. Oct. 1
Wes-sus Oil & Snowdrift Co., Inc.,
Common (guar.)
25c Oct. 1
West Coast 011 CO., pref. (quar.)
$IM Oct. 5
Well Virginia Pulp & Paper com.(qu.)
10c Oct. 1
Preferred (quar.)
$134 Nov. 15
Western Grocers. Ltd., pref.(quar.)_ _ _ _
111 Oct. 15
Western Maryland Dairy 51/ pref. (au.). $1 M Oct. 1
Western Tablet Stationery Corp., pf.(qu) $135 Oct. 1
Westinghouse Air Brace Co.
25c. Oct. 31
Capital stock (guar.)
20c Oct. 1
Westmoreland. Inc., corn.(guar.)
50o Oct. 1
Weston Elec. Instrument class A (qu.)
Weston (Geo.), Ltd., class A (quar.)
25c. Oct. 1
W edtv aro Chlorine Prod. prei (.Juar.)._ $IM °et. 1
Whitaker Paper Co.. pref. (quar.)
$135 Oct. 1
White Rock Mineral Springs corn.(qu).
50e. Oct. 1
1st preferred (attar.)
$131 Oct. 1
2d preferred (guar.)
8234 Oct. 1
$1.34 Oct. 1
Wichita Union Stockyards (guar.)
Will & Baumer Candle Co.,Inc.. pf.(qu.) $2
Oct. 1
Winn-Lovett Grocery Co., cl. A (qu.)_
50c. Oct. 1
Preferred (quar.)
131 Oct. 1
Wizened Hosiery (guar.)
2
Nov. 1
Wisconsin Holding Corp., cl. A & B (quo 17Mo. Oct. 1
Wiser Ill Cu.(quar.)
25c ht. 1
Woodward & Lathrop, Inc., corn. (quo_
300. Sept.30
Preferred (guar.)
$1M Sept.30
Worthington Ball Co. Mass A (guar.)...
50c. Oct. 15
Wtivlit Hargreaves Mines, Ltd. (guar.). 2Mc. Oct.
Extra
2Mc. Oct.
Wrigley (William), Jr. (monthly)
25c. Oct.
(Monthly)
25c. Nov.
Yale & Towne Mfg. Co. (guar.)
25c. Oct.
Yosemite Holding Corp., pref. (guar.)._ 874$e. Oct.
Young (J. S.) Co., common (quar.)
$134 Oct.
1.4 Oct.
7% preferred (guar.)
25e. Oct.
Young (L. A.) Spring & Wire Corp.(au.)
Books Closed.
Days Inclusive.
Holders of rec. Sept. 24
Holders of rec. Sept.26
Holders of rec. Sept. 15
Holders of rec. Sept. 23
Holders of rec. Sept. 20
Holders of rec. Sept. 15
Holders of rec. Sept. 15
Holders of rec. Oct. 7a
Holders of rec. Sept. 206
Holders of rec. Sept. 20a
Holders of rec. Sept. 20
Holders of ree. Sept. 17
Holders of rec. Sept. 15
Holders of rec. Sept. 22
Holders of rec. Sept.30
Holders of rec. Sept. 15
Holders of rec. Sept. 23
Holders of rec. Sept. 20
Holders of rec. Sept. 15
Holders of rec. Sept. 20
Holders of rec. Sept. 26
Holders of rec. Sept. 26
Holders of rec. Sept. 26
Holders of rec. Sept. 21
Holders of rec. Sept. 21
Holders of rec. Sept. 20
Holders of rec. Sept. 20
Holders of rec. Oct. 15
Holders of rec. Sept. 15
Homers of rec. Sept.
Holders of rec. Sept.23
Holders of rec. Sept 23
Holders of rec. Sept. 30
Holders of rec. Sept. 15
Holders of rec. Sept. 15
Holders of rec. Sept. 20
Holders of rec. Oct. 20
Holders of rec. Sept. 10
Holders of rec. Sept. 15
Holders of rec. Sept. 23
Holders of rec. Sept. 23
Holders of rect. Sept. 19
Weekly Return of New York City Clearing House.Beginning with March 311928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. We give the
statement below in full:
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY. SEPT. 24 1932.
• Capital.
Clearing Mouse
Members.
1932
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly to the Association and the returns of these two banks
are therefore no longer shown below. The following are
the figures for the week ending Sept. 23:
INSTITUTIONS NOT IN THE CLEARING HOUSE WITH THE CLOSING
OF BUSINESS FOR THE WEEK ENDED FRIDAY, SEPT. 23 1932.
NATIONAL BANKS-AVERAGE FIGURES.
Holders of rec. Sept. 15
Holders of rec. Sept. 26
Holders of rec. Sept. 20
Holders of rec. Nov. 1
Holders of rec. Sept. 20
Holders of rec. Sept. 20
Holders of rec. Sept. 20
t The New York Stock Exchange has ruled that stock will not be quoted °Xdividend on this date and not until further no ice.
$ The New York Curb Exchange Association has ruled that stock will not be
quoted ex dividend on this date and not until further notice.
a Transfer books not closed for this dividend.
S Correction. e Payable in stock.
f Payable in common stock. ft Payable in scrip. h On account of accumulated
dividends. .1 Payable in preferred stock.
m Commercial Invest. Trust Corp. Convertible pref. stock, optional series of
1929 dividend at the rate of 1-52 of one share of common stock or in cash at the
Option of the holder.
o Goldblatt Bros. Common dividend payable at the rate of 25-1.000 of a share
of common or in cash.
p American Superpower dividend covers the regular quarterly distributions for
quarters ending June 30 and Sept. 30
r Norwich & Worcester dividend will be paid provided the funds are furnished
by the New York, New Haven & Hartford RR. Co.
s Burma Corp.. Ltd. (Amer. dep. rec.), final div. for the year ended June 30
1932. of one (1) anna per share, plus a cash bonus of one (1) anna per share, free
of British and Indian income taxes, but less deduction for expenses of depositary.
8 Payable in Canadian funds.
u Payable in United States funds.
•American Cities P. & L. Corp. Day 75c. in cash or 1-32 of a share of cl B stock
on the cony. el A stock.
to Less deduction for expenses of depositary.
z Less tax.
*Surplus and Net Demand
Deposits,
Undivided
Profits.
Average.
Time
Deposits,
Average.
Bank of N.Y.& Tr. Co_
Bank of Manhat.Tr. Co.
National City Bank._._
Chemical Bk.& Tr. Co__
Guaranty Trust Co
Manufacturers Tr. Co
Central Hanover Bk&Tr.
Corn Exch. Bk.Tr. Co
First National Bank....
Irving Trust Co
Continental Bk.& Tr.Co
Chase National Bank__.
Fifth Avenue Bank
Bankers Trust Co
Title Guar.&Trust Co
Marine Midland Tr. Co_
Lawyers Trust Co
New York Trust Co__
Com'l Nat.13k.& Tr.Co.
Harriman N.B.& Tr.Co.
Public N. B.& Tr. Co
$
6,000.000
22,250.000
124.000,000
21.000.000
90.000.000
32.935,000
21,000.000
15,000.000
10.000,000
50.000.000
4,000.000
148,000.000
500.00
25.000.000
10.000.000
10,000.000
3,000.000
12,500.000
7,000.000
2,000.000
8,250,000
$
$
8,970.700
74,730.000
34.447.900
222.812.000
81.444.500 a931,173.000
220,081,000
45.260.600
180.495.700 8808.735,000
238.686,000
22,125,700
70.119,500
432,908.000
167.651.000
22.696.500
327.180.000
e85,049,400
287.598.000
75.137.200
6,752.800
20.009.000
117.382.000 e1,069.065.000
40,105.000
3.573.500
76,847.800 6468,974.000
25,041,000
21,266,900
7.050.900
39.468.000
2,528,500
10,520.000
179,978.000
21,837,500
8,490,300
39,459.000
23.522.000
2.209,900
33,482,000
4,274,300
$
11,652.000
41,156.000
183.745,000
28,624.000
65.705.000
85,954,000
54,801,000
22,594,000
25,948.000
42,462.000
3,006,000
127,856,000
3,325.000
42.570.000
1,205.000
5,573,000
1,087.000
22,403.000
3,502,000
6.066.000
27,667.000
_
1322438.0410
597.962.100 5 650 177.000
806.901.000
• As per official reports: National. June 30 1932: State, June 30 1932: trust companies. June 30 1932. e As of Aug. 17 1932.
Includes deposits In foreign branches: (a) $202,584,000; (b) $47,794,000; (e) S56,077,000: (6) $20334.000.
Oct. 1
Financial Chronicle
2294
Loans,
Disc. and
Investments
Other Cash, Res. Dep., Dep. Other
Including V. V. and Banks and
Gross
Bank Notes Elsewhere. Trust Cos. Deposits.
Gold.
s
$
s
$
$
Manhattan$
Grace National. 19,931,693
5,800
69,942 1,393,772 1,094,744 17,965,747
BrooklynPeoples Nat'l__
5,000
64,000
5,785,000
361,000
23,000
5,290,000
TRUST COMPANIES-AVERAGE FIGURES.
Loans,
Discount &
Investments.
Cash.
Reserve Dep. Dep. Other
N. V. and Banks and
Elsewhere, Trust Cos,
Gross
Deposits,
ManhattanEmpire
Fulton
United States
s
$
S
51,534,700 *2,525,600 14,031,600
441,400
17,630.100 *2,098,600
67,361,069 5,674,122 17,460,782
1,926,900 58,847.200
607,400 16.032.900
62,692,977
BrooklynBrooklyn
Kings County
94,002.000
24,305,783
2,369,000 21.474,000
1,539,466 4,844,379
342,000 102,459.000
24,073,281
$
$
* Includes amount with Federal Reserve as follows: Empire, $1,239,200; Fulton.
$1,955,200.
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.
Week Ended
Sept. 28.
1932.
Capital
Surplus and profits
Loans. discls & invest'ts_
Individual deposits
Due to banks
Time deposits
United States deposits
Exchanges for Clg. House
Due from other banks
Res-ve in legal depositles
Cash in bank
Res.In excess in F.R.Bk.
Changesfrom
Previous
Week.
$
$
79.900.000 Unchanged
66,666.000 Unchanged
+618.000
859.301.000
+174.000
555.602.000
139.428.000 -3.163.000
+38.000
216.311.000
-34.000
23,996.000
8.814.000 -1,482.000
129.426.000 -6,186.000
73.440.000 +1,550.000
+101.000
8.022.000
7,820,000 +1,009,000
Week Ended
Sept. 21.
1932.
Week Ended
Sept. 14.
1932.
$
79,900.000
66,666.000
858.683.000
555,428,000
142.591,000
216.273.000
24.030.000
10,296.000
135,612,000
71,899,000
7,921,000
6.811.000
$
79,900.000
66,666,000
831,924,000
566.567.000
141.059.000
216.024.000
6.863,000
9,663.000
136.415,000
87,933.000
8.277.000
22.033000
Philadelphia Banks.-Beginning with the returns for the
week ended Oct. 11 1930, the Philadelphia Clearing House
Association began issuing its weekly statement in a new
form. The trust companies that are not members of the
Federal Reserve System are no longer shown separately,
but are included with the rest. In addition, the companies
recently admitted to membership in the Association are
included. One other change has been made. Instead of
showing "Reserve with Federal Reserve Bank" and "Cash
in Vault" as separate items, the two are combined under
designation "Legal Reserve and Cash."
Reserve requirements for members of the Federal Reserve
System are 10% on demand deposits and 3% on time deposits, all to be kept with the Federal Reserve Bank. "Cash
in Vaults" is not a part of legal reserve. For trust companies not members of the Federal Reserve System the
reserve required is 10% on demand deposits and includes
"Reserve with Legal Depositaries" and "Cash in Vaults."
Beginning with the returns for the week ended May 14 1928,
the Philadelphia Clearing House Association discontinued showing the reserve required and whether reserves held are above or
below requirements. This practice is continued.
Week Ended
Sept. 24
1932.
Changes from
Previous
Week.
Week Ended
Sept. 17
1932.
Week Ended
Sept. 10
1932.
$
$
$
$
77,011,000 Unchanged
Capital
77,011,000
77,011.000
201,324.000 Unchanged
Surplus and profits
201,324,000 201,324.000
Loans, discts. and Invest. 1,153.080,000
+6,986.000 1,140,094,000 1.130.913.000
15.687.000
Exch.for Clearing House_
+714.000
14.973,000
12.641.000
124,496.000
Due from banks
+877.000 123,619.000 112.493.000
179.277.000
Bank deposits
-906.000 180.183.000 173.778.000
612.720.000 +6.771.000 605.949,000 582,328.000
Individual deposits
267.760,000
Time deposits
-139.000 267.899.000 267.643.000
1,059.757.000
Total deposts
+5,726.000 1,054.031.000 1,023,749,000
88,780,000 -3,025,000
89.805,000
Res've with F. R.Bank
88.879.000
Volume 135
Financial Chronicle
2295
Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon, Sept.29,and showing the condition
of the twelve Reserve banks at the close of business ca Wednesday. In the first table we present the results for the System
as a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding week last year.
The second table shows the resources and liabilities separately for each of the twelve banks. The Federal Reserve Agents
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between the Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon the returns for the
latest week appears on page 2247, being the first item in our department of "Current Events and Discussions"
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOSE OF BUSINESS SEPT. 28
1032.
Sept. 28 19324Sept. 21 1932. Sept. 14 1932 Sept. 7 1932. Aug. 311932. Aug. 24 1932 Aug. 17
1932 Aug. 10 1932. Sept.301931.
$
$
s
1
2,166.537.000 2,144,988,000 2,130,678,000 2,088.557,000 2,081,781,000 2,077.192.000 2,046.992.000 2,018.692.000 1,927,710,000
48.538.000, 54,350,0001 56,560.000
57.078.000
57.668.000
58,861.000
39,753,000
61.476.000
62,173.000
I
Gold held exclusively forst. F. R.. notes_ 2.215.075.000 2,199.338,000 2,187.238.000 2.145.635.000 2,139,429,000 2.136.053.000
2,108,468.000 2.080.865.000 1,967,463.000
Gold settlement fund with F. R. Board
264,484,000 286,056.000 297.635.000 262.556.000 273,486.000 236.798.000
Gold and gold certificates held by banks_ 399,087.000 379,297.000 347,754.000 386.382,000 360.046.000 380.542.000 261.792.000 256,673.000 445,634.000
357.197.000 342.888,000 725,084,000
Total gold reserves
2.878.646.000 2.864.691.000 2.832.627.000 2,794.573.000 2,772,961.000 2,753.393,000 2.727.457.000 2.680,426.000 3,138,181,090
Reserves other than gold
205.907,0001 202,129.000 .202.180.000 196.428.000 208,702.000 206,016.000 202.259.000 200.706,000 162,364.000
Total reserves
3.084,553,000 3,066.820.000 3,034.807.000 2,991.001.000 2,979.663.000 2.959.409.000 2.929.716.000 2.881.132.000 3,300,545,000
Non-reserve cash
83,946,000
79,556.000
74,414,000
80,562.000
75,119,000
78.097.1300
70.818.000
70,774,000
72.842,000
1311Is discounted:
Secured by U. S. Govt. obligations
107,059,000 118.309.000 144.302.000 152.137.000 157,545.000 154.186,000 161.837.000 168.543.00
132,951.000
Other bills discounted
232.588.000 240,714.000 257.631.000 268.291,000 275,211,000 272,518,000 281.023.000 285.395,000 194,974,000
Total bills discounted
339,647.000 359.023.000 401.933.000 420.428.000 432.756.000 420.704.000 442.860.000 451.938.000 327,925.000
Bills bought In open market
33,604,000
33,652,000
33,585,000
33,726,000
34,098,000
35,433,000
35.890,000
38.720.000 468,527,000
U. S. Government securities:
Bonds
421,482,000 421.348,000 420.747.000 420,772.000 420.988,000 420.865.000 420.815.000 420.858,000 309,185,000
Treasury notes
402,866,000 408.355.000 400.796,000 399.790.000 395.974.000 380,721,000 369.084.000 351,027,000
18,962,000
Special Treasury certificates
Certificates and bills
1,029,335.000 1.021.843.000 1.029.384.000 1030.352.000 1,034,753.000 1,049.475,000 1,061,147,000 1,079,128.000 414,198,000
Total U. S. Government securities 1,853.683,000 1,851.546.000 1,850.927.000 1.850.923.000 1,851,715.000 1,851,061,000
1,851.046.000 1,851.011.000 742.345.000
Other securities
4,402.000
4.872.000
5,714.000
5,426.000
5,915.000
6,051,000
6.019.000
14,405,000
6,009.000
Foreign loans on gold
4,768,000
Total 'Ills an I securities
2,231,806.000 2,248.623.000 2,292.012.000 2,310.650,000 2,324.484.000 2.319.249.000 2.335.815.000 2,347.678.000 1,557,970.000
Due from foreign banks
2,663.000
2.653.000
2,660.000
2.659.000
2.668.000
2.668.000,
2.667.000
8,752,000
2.732.000
Federal Reserve notes of other banks
15.648.000
17.871 000
18.065.000
13.305.000
15.082.000
15.016.000
14.764 000
16,996,000
13.836.000
Uncollected items
341.295.000 361,983.000 411.019.000 330.425.000 312.272.000 293.841.000, 345.865.000 299.398.000 478,913,000
Bank premises
58.126.000
58.126.000
58.121.000
58.127.000
58.121 000
58.121.000
58.121.000
59.225,000
58.119.000
All other resources
44,046.000
43,754,000
48,055,000
50.310,000
46.050.000
47.613.000
45.228.000 •48.067.000
36,359,000
Total resources
5.862,083,000 5,879,386.090 5,947,562,000 ,828.630,000 5,815.022,000 5.772.451,000 5.802.994.000 .5,723,804,00e 5.529,534,000
LIABILITIES.
F. R. notes In actual circulation
2,720,988,000 2,759,137.000 2.789,123.000 2,831,749,000 2,814.020,000 2.824.805,000 2,838.772.000 2.843,805,000 2,097,793.000
Deposits:
Member banks—reserve account
2,268.521,000 2.210.587.000 2,243.816.000 2,141.655.000 2,148.183.000 2.141.701,030 2.079.658.000 2,062.455.000 2,363,584.000
Government
48.405.000
68.969.000
47.295.000
29.512.000
18.474.000
59.429.000
48.503 000 .28.175.000
22,243.000
Foreign banks
9,864,000
10.702.000
11.079.000
12.057.000
10.556.000
14.187.000
10.418.000
95,135.000
10.402.000
Other deposits
26.352.000
24.830.000
20.127.000
25,764.000
19,265,000
21.485.000
35.241.000
25,194,000
35.587,000
RESOURCES.
Gold with Federal Reserve agents
Gold redemption fund with U.S. Tress
Total deposits
Deferred availability items
Capital paid In
Surplus
All other liabilities
2,353.142.000 2.315.088.000 2.298.610.000 2,220.156.000 2.241.284.000 2.202.535.000 2.173.820.000 .2.134.619.000 2,506,156,000
334.900.000 353.790.000 404.987.000 324.495.000 308.796.000 294.679.000 340.799.000 293.275.000 457.639.000
152.996.000 152,988.000 153.066,000 153.094.000 153.099.000 153.339.000 153.430.000 151.552.000 166,759,090
259.421.000 259.421.000 259.421.000 259.421.000 259.421.000 259.421.000 259.421.000 259.421 000 274,636,000
40,636.000
38,962.000
42.355,000
39,715.000
37.672,000
38.402.000
36.752.000
16,551,000
39,102.000
Total liabilities
5.862.0 i3,000 5,879,386,000 5,947,562,000 5,828,630.000 5,815,022,000 5.772.451,000 5,802,994,000 .5,723,604.001 5,529,534,000
Ratio of gold reserve to deposits and
F. R. note liabilities combined
56.4%
56.7%
55.3%
55.6%
54.8%
54.8%
54.4%
53.8%
68.1%
Ratio of total reserves to deposits and
F. R. note liabilities combined
60.4%
60.8%
59.2%
59.6%
58.9%
58.9%
58.4%
57.9%
71.7%
Contingent liability on bills purchased
for foreign correspondents
43.486.000
41,978.000
44.973.000
42.437.000
49.043,000
55,009.000
60.254.000
59,528.000 100,118,000
Maturity Distribution of Bills and
1
Short-Term Securities1-15 days bills discounted
236.003.000 241.609.000 283,154.000 299.302.000 304.870.000 295,875.000 309.585.000 312.232.000 245,975,000
16-30 days bills discounted
28,258.000
27.998.000
34.793.000
33,991,000
33,378,000
32.797.000
32.739.000
33.531.000
19.562.000
31-60 days bills discounted
43.906.000
41.266.000
47.290.000
46,038,060
49.502.000
51.812.000
50.944.000
52.513.000
35,058,000
61-90 days bills discounted
27.555.000
27,174,000
29.799.000
30,151.000
33,623,000
34.461.000
36,857.000
36.979.000
21,808,000
Over 90 days bilbi discounted
17,695.000
7,206,000
9.244.000
8.599.000i
11,383.000
11759.000
12.735.000
16.683.000
5,522.000
Total bills discounted
339,647.000 359.023.000 401,933,000' 420.428.000 432,756.000 426.704.000 442.860.000 451,938.000 327,925,000
1-15 days bills bought In open market.....
4,806.000
2,267,000
2,681.000
10,009,000
4,622.0001
8,111.000
8.353.000
9.438.000 119,241,000
16-30 days bills bought In open market_.
928.000
1,644,000
4,237.000
1,757.000
9,438,000
8,529.000
10,455.000
6.404.000
60,113.000
31-60 days bills bought in open market..
1,792,090
1,063.000
983.000
3.836,000 * 8,447.000
904.000
10.532.000
11.012.000 116.763.000
61-90 days bills bought In open market_ _
26,825.000
27,871.000
25,684.000
26,413,000
10.346.000
10,815,000
6,550.000
11.866.000 167,987,000
Over 90 days bills bought In open market
30.000
30,000
30,000
4.423.000
Total bills bought in open market
33.652.000
33,604.000
33.585.000
33,726,000
34,098,000
35,433.000
35.890.000
38.720.000 468,527.000
1-15 days U. S. certificates and bills
51.550.000 171,426,000 144.340.000 166,891.000
19.822,000
65.441,000 125.442.000 132.459.000
4,950,000
16-30 days U.S. certificates and bills
150,417.000 136.290.000
49.502,000 179.425.000 206.910.000
58.050.000
60.822,000
80.442.000
15,950,000
81-60 days U. S. certificates and bills
1 236.789,000 236,791.000 217,690.000
156,349.000 122,100.000
202.089.000
249.650.000
76,480,000
61-90 days U. S. certificates and bills
93,750.000 2)9.568.000k136.250,00
25,000.000
149.850.000 116.350.000 112.100.000
84.600.000 218.588,000 117.249,000
Over 90 days certlfleatee and bills
677.747.000 618,153.000 441,318,000 441.323,000 465,219.000 474,819.000 442.106.000 597.987.000 199,569.000
Total U. S. certificates and bills
1,029,335,060 1,021,843,000 1,029,384,000 1,030.352.000 1.034.753,000 1,049,475.000 1.061.147.000 1.079.126.000
414,198,000
1-15 days municipal warrants
4,632,000
4,162.000
3,910,000
5,534,000
4,238,000
5,684.000
4,,11.000
4.03.000
16-30 days municipal warrants
25,000
1,276,000
1,258.000
172.000
137,000
1.018.000
1,116.000
15.000
31-60 days municipal warrants
25.000
25,000
25,000
25,000
35.000
35.000
35.000
10,000
61-90 days municipal ‘varrants
10,000
10.000
25.000
25 000
Over 90 days municipal warrants
205.000
205.000
193.000
215,000
184,000
195,000
130.000
80,000
130.000
Total municipal warrants
4,872,000
4,402.000
5,426,000
5.714.000
5.915,000
6,051.000
6.019.000
6.009.000
105,000
Federal Reserve Notes—
Issued to P. It. Bank by F. R. Agent..._ 2.972.797,000 3,007,531.000 3,031,049,000 3.055.161.000
3,051,999.000 3.071,449,000 3.078.279.000
hell by Federal Reserve Bank
251,809,000 248,394.000 241,926,000 223.412.000 237,979,000 246.644,000 239.507.000 3.084.590.000 2,521.647.000
240.991.000 423,854,000
In actual circulation
2.720.988,000 2.759.137.000 2.789,123.000 2.831.749,000 2.814.020.000 2.824,805.000 2.838.772.000 2.843.605,000
2,097,793,000
Collateral field by Agent as Security for
Notes Issued to Rant—
By gold and gold certificates
1,030,622,000 1,034.973.000 1.032,863,000 1.071,042,000 1081,996,000 1,039.927.000
Gold fund—Federal Reserve Board
1,135,915,000 1,110.015.000 1,097,815.000 1,017.515.000 999,765.000 1.037.265.000 1,048.127.000 1.019.627.000 649,530,000
By eligible paper
323,915,000 342,626.000 384,678.000 403.407.000 416,786.000 411.358 000 1.000.885.000 990.065.000 1.278,180.000
U. S. Government securities
'
503,800,000 532.600.000 533,300,0001 589.800,000 578.100.000 594.800.0001
1 427.769.000 434.307.000 712,450,000
615.600.000 644.100.000
1
Total
2,994,252,000 3.020.214,000 3,048,656.000 3.081.764.000 3,078.647.000 3
083.350.000 3.090 361.000 3.097.099.000 2,640.160.000
• Revised figures
WEEKLY STATEMENT OF RESOURCES AND LIABILITIES OF EACH OF
THE 12 FEDERAL RESERVE BANKS AT CLOSE OF BUSINESS SEPT. 28
1932
Two Ciphers (00) omitted.
Federal Reserve Bank of—
Boston. New York. Phila. Cleveland. Richmond Atlanta. Chicago.
Total.
St. Louts. Sfinneap Kan.City. Dallas. San Frog.
RESOURCES.
$
I
$
$
$
1
S
$
$
$
$
$
Gold with Federal Reserve Agents 2,166,537.0 158.527.0 581,872,0 150.500.0 182.470.0
$
70.600.0 65,000,0 623,845.0
40,335,0 58,480,0 23.935.0 148,263,0
Gold retVri fund with 17.14. Treas..48,538,0 3,379,0
6.373,0 5,523.0 5.702.0 2,088.0 3,051,0 8.031,0 62.710.0
1,853.0 2,239.0 2,504.0 1,085.0 6.710,0
Gold held excl. agst. F. R. notes 2,215.075.0 161,906.0 588,245,0 156,023,0 188,172.0 72,688.0
68.051.0 631,876.0 64,563,0 42,574.0 60,984,0 25.020,0 154,973,0
Gold settle't fund with F.R.Boarcl 264.484,0 8,056.0
93,832,0 3,328.0 24.074.0 8.294.0
Gold and gold et's. held by banks_ 309,087.0 17,170.0 259,714,0 6,871,0 10,337,0 7.819.0 6,318.0 69,327,0 4,583.0 9,324,0 9,051,0 6,122.0 22,175,0
9.026,0 30.530,0 6,389.0 3,697.0 11,277.0 4,077,0 23,180,0
Total gold reserves
2,878.646,0 187,132.0 941,791,0 166,222.0 231.583,0 88,801,0 83,395.0
731.733,0
55,595.0 81.312.0 35.219,0 200,328.0
Reserves other than gold
205,907,0 19,530.0
57.601,0 32.035,0 18,640.0 9,179.0 5.255.0 28,675,0 75,535.0
8,881,0 3,490,0 4,762,0 7,305,0 10,554.0
Total reserves
3,084.553.0 206.662.0 999,392,0 198.257.0 250,223.0 97,980.0 88,650.0
84,416.0 59.085.0 86.074.0 42,524.0 210.882,0
Non-reserve cash
21,448,0 4,719,0 4,258,0 3,497,0 5,886,0 760.408.0
83,946,0 6,001,0
15.608,0 4,904,0 2,136,0 3,787,0 3,589,0 8,113,0
BUIs discounted:
Bee. bd U 14 Govt. obligations_ 107.059.0 6,529,0
38.033.0 15,136.0 9,123.0 3.810,0 1.499.0 6,626.0
4,927,0
680.0 1,132.0
802.0 18.753,0
Other bills discounted
232,588,0 8,929,0
32.803.0 37,907,0 19,134.0 19,133.0 15,399,0 18,199,0 4,719,0
10.354,0 16,370.0 10,812.0 38.829.0
Total bills AletroUnted
339.647,0 15,458.0
70.836.0 53.043,0 28,257.0 22,943.0 16,898.0 24,825,0
,11,043.0 17,502.0 11,614.0 57.582.0
light t.nwl t In rn nntrket
33 /1114 0 2 302 0
10 551 0 3 200 0 5 114 0 0 1041* 1 74131* 4 147 n 9.646.0
1 noon
elan
004 n
1241f1 n 2 221 0
Financial Chronicle
Two Ciphers (00) omitted.
Total.
Boston. New
York.
Phila.
Oct. 1 1932
Cleveland. Richmond Atlanta. Chicago. St. Louis. Afinneap. Kan.City. Dallas. San Fran.
s
$
$
s
RESOURCES (Concluded)rs El. Government securities:
Bonds
Treasury notes
Certificates and bills
421,482,0 20.350,0
402.866.0 22.957.0
1,029.335.0 77,921.0
189,251.0 31.172.0 36.491.0 9,648.0 10.275.0 40.775,0 13.940.0 17.270.0 11,776.0 15.265.0 25,269.0
152.846.0 32.496.0 44,559.0 11,252.0 11.124.0 51,451.0 15.673.0 11.251.0 13.6500 6.140.0 29.467,0
376.695.0 75.651,0 99.232,0 26,233,0 25,910.0 170.084.0 36.543.0 26.207.0 31.826.0 14.316.0 68,708,0
Total U. S. Govt. securities
(Baer securities
1,853.683.0 121,228.0
4.872,0
718,792,0 139.319.0 180.282.0 47,133.0 47.318.0 262,310,0 66,156.0 54,728.0 57.252.0 35,721,0 123,444,0
175.0
2,857.0 1.340.0
500.0
Total bills and securities
)ue from foreign banks
'. R. notes of other banks
incollected items
lank premises
I1 other resources
2,231,806,0 139,038,0
2.663,0
212.0
15.648.0
345.0
341,295.0 41.264.0
58.126,0 3.336.0
44.046,0 1,323,0
803,036.0 196.962.0 211,653.0 72.2(10,0 66,479.0 291,282.0 76,810.0 66,580.0 75.648.0 48,201.0 183.857.0
11.0
260,0107.0
77.0
99.0
374.0
18.0
75.0
288.0
184,0
949.0
458.0 1.546.0
327 0 1.949.0
879.0 1.549.0 1,125.0
819.0 1.071.0
438.0
5.142.0
95.310.0 30.133.0 28.909.0 29.500.0 8,399.0 39.648,0 15.912,0 8.495.0 16.0090 10.6000 17.116.0
14.817.0 2.907.0 7,967.0 3,617.0 2,489,0 7,828,0 3,461.0 1.835.0 3.649.0 1.787.0 4.433.0
851.0 1.189.0 1.334,0
058.0 1.546,0
25,995.0
723.0 1,236.0 3.257.0 3,645,0 1,989,0
5
$
$
$
$
$
$
$
3
5,862,083,0 398,181,0 1,966,089,0 434 427,0 505,334,0 211.289,0 176,526,0 1,118,686 187,604,0 140,146,0 187.641,0 108,292.0 427.868,0
Total resources
LIABILITIES.
,. R. notes In actual circulation- 2,720,988,0 197,617,0 572,785,0 242,879,0 280,322,0 101.992,0 103,107,0 682,766,0 99,896,0 79,946.0 92,034.0 36.704,0 230,940,0
)eposits:
Member bank reserve account 2,268.5210 124,678,0 1,120.351.0 116,028,0 145.163.0 48,601,0 42,137.0 332.740.0 52.707,0 39,602.0 64.043,0 42,859,0 139,612,0
Government
48,405,0 1,878,0
18,821,0 1,337,0 3,297.0 9,489.0 3,174,0 1.668,0 1,409.0 1,068,0 1,769.0 1,799,0 2,696,0
9.864.0
376,0 1,361.0
224.0
Foreign bank
295.0
406.0
356.0
772,0
284.0
3.017.0 1,046.0 1,026,0
701.0
26,352,0
226.0
412,0
Other deposits
594.0
996.0
170.0 5.304,0
584.0
122,0
12.475.0
189.0 1,941,0 3.339,0
Total deposits
)eferred availability Items
'spite] paid in
urplus
.11 other liabilities
2,353,142,0
334.900.0
152.996.0
259,421,0
40,636,0
127.450,0 1,154,664,0
40.972.0
91.520.0
10.872,0
59,020.0
20,039,0
75.077.0
1,231,0
13,023.0
118.600.0 151,427.0 61,835,0 46,271.0 336,181.0 55.468.0 41.120.0 66.701.0 45,112.0
27.829.0 28,281.0 28.785.0 8.821.0 39.490.0 16.421.0 8.094.0 15.862,0 ,11.549.0
16.098.0 14,221,0 5.173.0 4,858.0 16.910.0 4,433.0 2.910.0 4.059.0 3.908.0
26,486.0 27,640.0 11.483.0 10.449.0 38,411.0 10,025.0 6.356.0 8.124.0 7.624.0
861,0 3.395.0
2.535.0 3.443,0 2.021.0 3.020,0 4,928,0 1,359.0 1.720.0
148.313.0
17.278,0
10.532,0
17,707.0
3.100,0
Total liabilities
5.862,083.0 398,181,0 1,966.089.0 434,427,0 505,334,0 211,289,0 176,526,0 1.118,686 187,604,0 140,146,0 187,641.0 108,292,0 427,868.0
Memoranda,
teserve ratio (per cent)
59.8
54.3
48.8
74.6
54.2
59.3
60.8
54.8
63.6
55.6
58.0
57.91
52.0
lontIngent liability on bills ourA n eon .-. n n ••• n
.__.__ __-_.....,•• nnn n
A nne n
A nen n
1 '7070 1 770 n
7 710 n
1 AC'S n
090(1 1 7.17 (I 1 1 nt n
n to • n
•
FEDERAL RESERVE NOTE STATEMENT.
Federal Reserve Agent at-
Total.
Boston, New York.
Two Ciphers (00) omitted.
$
5
Federal Reserve notes:
Issued to F.R.Bk. by F.R.Agt_ 2.072.797.0 218.706,0
Held by Federal Reserve Bank. 251.809.0 21.089,0
$
Cleveland Richmond Atlanta, Chicago. SI, Louis. Minneap. Kan.City. Dallas, San Frans
$
$
3
3
$
$
$
$
$
3
643.993.0 256.200.0 291,222.0 109.593.0 121,806.0 722.892.0 110.607.0 83.269.0 103.884,0 42.881,0 267.654.0
71,208.0 13.411,0 10,900,0 7.601,0 18,699.0 40.126,0 10.711.0 3.323.0 11,850.0 6.177.0 36,714,0
572,785,0 242,879,0 280,322,0 101,992,0 103,107,01682,766,0 99,896,0 ,79,946,0 92,034.0 36.704,0 230,940,0
In actual circulation
2.720,988,0 197,617,0
Collateral neid ny Agt, as security
for notes asued to bank:
Gold and gold certificates
1.030.622.0 47.010.0
Gold fund-F.R. Board
1,135.915,0 111.517.0
Eligible paper
323.915.0 15.415.0
U.S. Government securities
503.800.01 44.800.0
409.872.0 79.320.0 71,470.0 12.920.0
172,000.0 71.180.0 111.000.0 57.680.0
68,080.0 53.113.0 28.209.0 23.891,0
53.000.0 85.000.0 16.000.0
1
649.952,0 256.613.0 295.679.0 110.491.0
2,994.252,0 218.742,0
Total oollateral
Phila.
13.500.01254.845.0 21.110.0 12.635,0 9,680.0 12.260.0 86.000.0
51.500.0 369.000.0 41.600.0 27.700.0 48.800.0 11.675.0 62.263.0
15.742.0 24.618.0 9.363.0 9.589.0 17.302.0 11.568.0 47.025,0
42.000.0 80.000.0 38.600.0 33.900.0 30.000.0 7.500.0 73 000 0
122.742.0 728.463,0 110,673,0 83.824.0 105,782.0 43.003.0 268.288,0
Weekly Return for the Member Banks of the Federal Reserve System.
Following is the weekly statement issued by the Federal Reserve Board, giving the principal items of the resources
and liabilities of the reporting member banks from which weekly 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 Dee. 14 1917, published in the "Chronicle" of Dec. 29 1917, page 2523. The comovnt of the Rese-te Board upon
the figures for :he latest week appears in our department of "Current Events and Discussions," on page 2248, immediately preceding which we also give the figures of New York and Chicago reporting member banks for a week later.
Beginning with the statement of Jan 9 1029, the loan figures exclude "Acceptances of other banks arid hills of exchange or drafts sold with endorsement. and Include
all real estate mortgages and mortgage loans held by the bank. Previously acceptance; of other banks and bills sold with endoNement were includs1 with loans, and some
of the banks included mortgages In Investments. Loans secured by U. S. Government obligations are no longer shown separately, only the total of loans on securities
being given. Furthermore, borrowing at the Federal Reserve Is not any more subdivided to show the amount secured hy U. S. obligations and t/1010 secured by commercial
paper, only a lump total being given. The number of reporting banks is now omitted; in its place the nuinber of cities Included (then 101), was for a time given, but beginning Oct. 9 1929 even this has been omitted. The figures have also been revised to exclude a bank in the San Francisco district with loans and Investments of 8135,000,000
en Jan 21929, which had then recently merged with a non-member bank. The figures are now given In round millions Instead of In thousands.
PRINCIPAL RESOURCES AND LIABILITIES WEEKLY REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE OF
BUSINESS SEPT. 21 1932 (In millions of dollars).
Boston. New York
Phila.
Cleveland, Richmond Atlanta, Chicago. St. Louts. Vinneap Kan City. Dallas. Rai:Fran.
$
1.249
$
7.798
3
1.121
$
1,934
Leans-total
10,729
774
4.080
621
4,51
6,218
288
486
1.918
2,162
308
313
8.201
475
3,718
4.981
3.220
290
185
2.499
1,219
1.767
1081
11.1
5.627
603
1,431
2,962
i i0
81
15
716
429
29
135
144
0
970
47
5.658
1,245
295
12.5
1,313
'fl
On securities
All other
Investments-total
U.S. Government securities
Other securities
Reserve with F. It. Bank
Cash In vault
Net demand depoelts
Time deposits
Government depoelts
Due from banks
Due to banks
-
$
590
503
$
2,245
1,126
317
320
514
612
119
198
108
214
500
808
273
225
275
477
331
N
Loans and Investments-total
3
18.930
69
11
626
272
50
110
187
7
110
24
841
821
45
108
224
in
3
t.
CO 00 t.
C:10C.20NICACJ
Total.
Federal Reserve District-
$
3
S
532
314
522
387
$
1,735
1.520
301
184
257
236
993
696
824
114
187
54
130
78
179
72
164
244
749
183
725
231
130
265
151
742
100
83
408
317
111
120
67
63
147
118
95
56
411
331
36
19
5
156
141
3
44
51
1
42
14
345
181
3
140
156
2
27
7
220
125
27
87
77
85
14
557
880
39
147
171
An
269
26
35
7
1,218
21
903
200
46
34
303
74
377
76
in7
6
279
200
9
78
97
9
Condition of the Federal Reserve Bank of New York.
The following shows the condition of the Fed( -ill Reserve Bank of New York at the close of business Sept.28 1932, In
comparison with the previous week and the corresponding date last year:
ResoucresGold with Federal Reserve Agent
Gold redemp. fund with U. S. Treasury_
Sept. 28 1932, Sept. 211932. Sept.301931.
$
$
$
581.872.000 556.473.000 431.575.000
11.612.000
6.373,000
12.422,000
Gold held exclusively agst. F. R. notes
Gold settlement fund with F. R. Board_
Gold and gold ctts. held by bank
588.245.000
93.832.000
259.714.000
568.085 000
99.607.000
247,722.000
Total gold reserves
Reserves other than gold
941.701.000
57.601.000
915.414.000 1,124.885,000
36.824,000
56.444.000
Total reserves
Non-reserve cash
Bills discounted:
Secured by U.S. Govt. obligations._
Other bills discounted
999.392.000
21.448.000
971,858.000 1,161.700.000
24,330,000
22,885.000
Resources (Concluded)Due from foreign banks (see cots)
Federal Reserve notes of other banks...._
Uncollected Items
Bank premises
All other resources
443.907.000
216.213.0110
464,675.000
Total resources
Total bills discounted
Bills bought In open market
U. S. Government securities:
Bonds
Treasury notes
Special Treasury Certificates
Certificates and bills
38.033.000
32.803.000
43.451.000
33,286.000
70.836.000
10,551,000
76.737.000
10.884,000
30,214.000
23.307,000
53.521.000
155,366,000
189,251.000
162.848.000
189.250.000
155.670.000
97,271.000
5.000
376.695.000
373.872.000
128,429,000
718,792.000
2,857,000
718.792.000
2.887,000
225,705.000
6.840.000
4,768
s
949.000
5.142.000
95.310.000
14.817.000
25.995.000
939.000
6.036.000
97.163.000
14.817.000
25.570.000
3.217.000
6,00,000
148.631..000
15.240,000
16,507,000
1,966.089.000 1.948.3(18.000 1.821,879,000
LiabilitiesFed. Reserve notes in actual circulation_ 572.785.000 579,489.000 406.051.000
Deposits--Member bank reserve met- 1.120.351.01)0 1,088.676.000 1.078,046.000
18.821.000
Government
26.795 (1)10
1.765.000
3.017.000
Foreign bank (see note)
3.854.000
33,752.000
12.475.000
Other deposits
11.211.000
9,191,000
--1,154.664.000 1.128.536.000 1.122.754.000
Total deposits
91.520.000
Deferred availability Items
93.703.000 142,840.000
59.020.000
Capital paid in
59.021 000
64.669,000
75.077.0110
Surplus
75.077 000
80,975.000
13.023.000
All other liabilities
12,542 0110
4.990.000
'
Total U.S. Government securities._
Otner securities (see sots)
Foreign loans on gold
Sept. 28 1932 Sept. 211932. 5e00.301931.
Total liabilltlee
1,966.089.000 L948.388.000 1,821,879.000
Ratio of total reserves to deposit and
57.9%
Fed. Reserve note (abilities combined_
56.9%
76.0%
Contingent liability on bills purchased
note)
for
correspondent/I
securities
(see
foreign
446,200.000
14.726.000
and
803.036.000
809.100.000
hills
13.218.000
Total
21.141.000
---NOTE.-Begionieic with the statement of Oct. 17 1925. two new items were added in order to show separately the amount of balances held abroad and amounts due
to
In addition. the Caption -All other earnings assets:* previously made up of Federal Intermediate Credit Bank debentures. was changed to "Other
foreign correspondents
securities.** and the caption, 'Total earnings assets" to 'Total bills and securities." The latter term was adopted as a more accurate description of the total of the discount
are
the
TIM
stated
only
acquired
It
Reserve
securities
Act,
which
Federal
under
the
Items
provIslens of Section 13 and 14 ot the
Included therein.
acceptances and
Financial Chronicle
Volume 135
Quotations for United States Treasury Certificates of
Indebtedness, &c.
knartriat
imartirte
Maturity.
PUBLISHED WEEKLY
Terms of Subscription—Payable in Advance
•
.Including Postage—
12 Mos.
8 Mos.
Within Continental United States except Alaska
$10.00
$6.00
In Dominion of Canada
11.50
6.75
South and Central America, Spain, Mexico, U. S.
Possessions and Territories
13.50
7.75
Great Britain, Continental Europe (except Spain). Asia,
Australia and Africa
15.00
8.50
The following publications are also issued:
MONTHLY PUBLICATIONS—
COMPENDIOUS—
RANK AND QUOTATION RECORD
PUBLIC UTILITY—(s01311-81111011ny)
RAILWAY & INDITSTRIAL—(four a year) MONTHLY EARNINGS RECORD
STATE AND MIJNIciPAL--(301311-a1111.)
The subscription price of the Bank and Quotation Record and the
Monthly Earnings Record is $6.00 per year each; for all the others is
$5.00 per year each. Foreign postage extra.
NOTICE.—On account of the fluctuations In the rates of exchange.
remittances for foreign subscriptions and advertisements must be made
o New York funds.
Terms of Advertising
Transient display matter per agate line
45 cents
Contract and Card rates
On request
Canso° Orricio—In charge of Fred. H. Gray, Western Representative.
208 South La Salle Street. Telephone State 0813.
LONDON OFFICE—Edwards & Smith. 1 Drapers' Gardens, London. E. C.
WILLIAM B. DANA COMPANY, Publishers,
William Street, Corner Spruce, New York.
Published every Saturday morning by WILLIAM B. DANA COMPANY.
President and Editor, Jacob Seibert; Business Manager, William D. Riggs;
Treas., William Dana Seibert: See., Herbert D.Seibert. Addresses of all. Office of Co.
Wall Street, Friday Night, Sept. 30 1932.
Railroad and Miscellaneous Stocks.—The review of the
Stock Market is given this week on page 2283.
The following are sales made at the Stock Exchange this
week of dhares not represented in our detailed list on the
pages which follow:
STOCKS.
Sales
Week Ending Sept. 30. for
Week.
Railroads—
Par. Shares.
Chic & East Ill pref-100
300
Colo & Sou 1st pref-100
280
Cuba RR pre!
100
30
Hudson & Manh pf_100
100
Ill Cent preferred 100
200
Leased lines
100
30
lot Rys of Cent Am—
Preferred
100
10
Manhat Elev guar_100
200
Minn St P & S S M—
Leased line
100
10
Morrie & Essex
50
10
Nash Chatt & St L_100
70
Pacific Coast 1st pf_100
10
Rutland RR pref___100
200
Range for Week.
Lowest.
9 per share.
234 Sept 29
28 Sept 24
13 Sept 28
39 Sept 24
30 Sept 26
3734 Sept 28
1
Highest.
Range Since Jan. 1.
Lowest.
Highest,
9 Per share. $ Per share.9 Per share.
14 May 5
234 Sept 28
Aug
2434 Sept 24 8
Mar 30 Sept
July 20
13 Sept 28 4
Aug
39 Sept 24 2434 May 48
Jan
31 Sept 26 934 July 38 Sept
3734 Sept 26 1534 June 45
Aug
9 Sept 29 9 Sept 29
1034 Sept 29 1334 Sept 24
334 June 1134 Sept
9 Sept 4634 Mar
1414 Sept 29 1434 Sept 29 834
58 Sept 28 58 Sept 28 40
20 Sept 28 2534 Sept 24 734
734 Sept 26 734 Sept 26 234
934 Sept 27 934 Sept 27 3
July
July
May
May
May
2034
60
3034
1334
1434
Sept
Sept
Sept
Sept
Sept
Industrial & Miscall,
Affiliated Products__
8,300 9 Sept 27 934 Sept 26
Amal Leather
100 2 Sept 26 2 Sept 28
American Ice pref_100
100 4034 Sept 30 4034 Sept 30
Am Mach & Meta ctfs.
100 111 Sept 27 134 Sept 27
American News
50 24 Sept 30 28 Sept 27
Arch Daniels Mid pf 100
10 95 Sept 28 95 Sept 26
Asso Dry Gds 2d p1100
100 3434 Sept 26 3414 Sept 26
Barker Bros pref_100
40 1514 Sept 24 16 Sept 28
Bigelow Sanford Carp.•
100 13 Sept 29 13 Sept 29
Budd (E 0) pref_100 1.010 934 Sept 29 1174 Sept 26
Burns Bros el A etfs •
11 Sept 29
100
11 Sept 29
City Stores class A •
10 334 Sept 26 344 Sept 26
Columbia Pict v t c • 1,300 1134 Sept 29 1334 Sept 26
Comm Cred pref(7)_25
20 1934 Sept 27 1934 Sept 27
Comm Inv Tr pf(7) 100
150 102 Sept 29 105 Sept 30
Conn Ry & L'Ung__101)
10 43 Sept 30 43 Sept 30
CYOWD MUM 1st pf -•
20 3134 Sept 28 3114 Sept 28
434
%
40
1
14
84
1514
10
934
314
44
1
411
1114
94
43
21
May 1614
Apr 234
June 68
Apr 134
July 83
Apr 95
July 35
Apr 30
Apr 1534
July 14
Sept 151
May 434
May 1434
June 2134
Feb 105
Sept 55
June 37
Mar
Sept
Mar
Aug
Jan
Feb
Mar
Jan
Aug
Jan
Jan
Jan
Aug
Mar
Sept
Jan
Mar
Devoe & Ray 1st pi 100
10
Dresser Mfg class A •
100
Class B
*
100
Eng Pub Serf pf(8)_•
200
Fash Park Assoc phi 100
70
Fuller Co prior pref.- _•
120
Gen Gas& Elec pf A (7)•
140
Preferred A (8)
120
•
Hamilton Watch
•
10
Inter Dept St pref_100
10
300
Keith-Albee-Orph pf100
Kelly-Spgfd Tire ars.* 1,600
8% preferred etfa.100 1,200
Kresge Dept Stores_._•
10
Laclede Gas pref. _100
50
McLellan Stores pi 100
40
Mengel Co pref....100
480
Nat Dist Prod pref_40
300
Newport Industries_ _1
700
N Y Shipbuilding ' 300
5934
5
214
25
134
214
5%
5%
2
1834
7
34
7
1
40
10
20
2034
134
114
June
July
June
June
July
May
July
July
June
July
May
May
June
Apr
July
July
May
May
June
June
Feb
Feb
May
Mar
Jan
Sept
Aug
Feb
Feb
Jan
Sept
Sept
Sept
Mar
sent
mar
Jan
Feb
Aug
Aug
7834 Sept 29
11 Sept 26
444 Sept 28
45 Sept 24
3 Sept 29
2474 Sept 24
1834 Sept 29
2234 Sept 24
5 Sept 30
89 Sept 28
29 Sept 29
144 Sept 24
1934 Sept 28
1% Sept 26
63 Sept 28
17 Sept 26
23% Sept 30
25 Sept 24
234 Sept 26
334 Sept 27
7614 Sept 29
11 Sept 26
444 Sept 28
45 Sept 24
334 Sept 28
2414 Sept 30
20 Sept 27
2734 Sept 29
5 Sept 30
39 Sept 26
30 Sept 29
174 Sept 26
24 Sept 29
114 Sept 26
65 Sept 24
1734 Sept 26
35 Sept 30
2574 Sept 30
3 Sept 26
334 Sept 27
Pat Tel & Tel pref.._100
3010234 Sept 30 103 Sept 26
Panhandle Prod & Ref
DI 8 Sept 27 7 Sept 28
Preferred
100
Pierce-Arrow Co pf_100
100 19 Sept 24 19 Sept 24
Pirelli Co of
100 3034 Sept 30 3034 Sept 30
__
Pitts Term Coal
Italy40 514 Sept 26 714 Sept 26
pfd 100
Plymouth Oil Co
5 5,000 1134 Sept 30 1234 Sept 29
20 100 Sept 27 100 Sept 27
Procter & Gamble NM)
Scott Paper
•
10 2934 Sept 28 2934 Sept 26
Sloss-Sheff St & Ir pile°
50 2034 Sept 28 2034 Sept 28
20 50 Sept 28 50 Sept 28
The Fair pref
100
70 234 Sept 28 274 Sept 28
United Dyewood_ _100
100 . 20 34 Sept 29 40 Sept 24
Preferred
100 90 Sept 28 91 Sept 27
Unit Piece Dye pfd_100
70 102 Sept 26 102 Sept 26
US Gypsum pref_100
70 95 Sept 24 95 Sept 24
Univ Leaf Tob pref.100
40 34 Sept 28 3514 Sept 28
Van Roalte 1st pref_100
100 70 Sept 27 70 Sept 27
Walgreen Co pref_100
14 Sept 24
100
% Sept 24
Wells Fargo & Co....1
•No par value.
95
23
1234
el%
734
2534
30
40
12
55
30
234
24
5
85
36
38
3274
334
434
8514 June 109
334
14
21
514
1134
81
18
6
38
%
22
6434
8434
70
15
80
11
Apr 10
May 41
June 3134
Bent 1234
Sept 1234
July 103
May 42
July 2934
July 85
Apr 334
Apr1 40
June1 9334
June 104
Julyl 95
Julyl 4234
Jun01 72
July 174
Jan
July
Jan
Mar
Mar
Sept
Jan
Feb
Sept
Jan
Sept
Sept
Jan
Apr
Sept
Sept
Apr
Sept
The Curb Exchange.—The review of the Curb Exchange is
given this week on page 2286.
A complete record of Curb Exchange transactions for the
week will be found on page 2315.
2297
Sept. 151933..,.
June 15 1933_
Mar. 15 1933_
May 2 1933._
Aug. 1 1934._
May 2 1934_
June 15 1935.--
int.
Rate.
Bid.
Asked.
maturity.
134%
134%
2%
2%
234%
3%
3%
100%,
100nts
100utt
101
Mutt
102nn
101un
moth,
1001in
____
101131
100ust
10214n
101"tt
Oct. 16 1932_
Dec. 15 1932_
Aug. 1 1936_
Sept,15 1937_
Feb. 1 1933_
Mar. 15 1933...
int.
Rats. Bid.
354%
334%
354%
314%
344%
354%
10011n
100u.,
1011..,
10111,,
10111,,
10111,,
Asked.
10011n
1005'ss
101nss
101"ss
10115ts
101uss
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.—
Below we furnish a daily record of the transactions in
Liberty Loan 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. Sept.24 Sept.26 Sept.27 Sept.28 Sept.29 Sept.30
First Liberty Loan
High 10114,, 101,4s, 101,,s, 10114n 101"ss 101"n
334% bonds of 1932-47__ Low_ 101"n 101",, 101",, 101",, 101"n 101"ss
(First 3%s)
Close 101", 1011482 101"st 10118n 10116n 101"82
Total sales in $1,000 units_
170
101
60
132
53
66
Converted 4% bonds of{HIM; ------__-_ 102
1932-47 (First 4s)
---Low---_ 102
------Close
—_ 102
---Total sales in $1,000 units-_
1
------__—
---Converted 434% bondsilligh 1022811 102"ss 102",,10214. 10Isi,, 1021%
of 193247 (First 411s) Low_ 102"ss 1022,3, 102"st 102,211 102"n 102"ss
Close 102nn 1021711 10224n 102,,,, 1022% 102"n
Total sales in 51.000 waits-15
61
43
24
12
14
Second converted 434% High
bonds 01 1932-47(First Low— -----------------Second 434e)
Total sales in $1.000 units-----------Fourth Liberty Loan
{Hisli 103",, 103 ,,,, 103,4,1 103",,
---103"103",,u
Low- 103,81, 103",, 103",, 103",,103lin 103",,
434% bonds of 1933-38
(Fourth 434s)
Close 103",, 1032tst 102,,,, 103"n 103,,,, 103"n
17
Total sales in $1,000 units__
498
88
395
se
232
Treasury
{High 1082% 108nn 108"o 108",, 109",, 108"as
4145, 1947-52
Low_ 1082811 108,,,, 108"ss 108"s, 108"s, 1081111
Close 108ton 108nn 108242 108"st 108"ss 108"ss
7
Total sales in $1,000 units-42
4
7
46
44
High 10414n 10414, 104"., 104,48, 104"st 104"n
41, 1944-1954
Low_ 104"at 104"st 1041,
,, 104,2n 104"1, 104"ss
Close 104%, 104,,,, 104,,n 104",, 104,8s, 104"s,
5
Total sales in $1,000 units__
159
146
81
101
381
Higi 102",,1021011 102",,102",, 102,715 102",
,
31(5, 1948-1958
Low_ 102",, 102",, 102",, 102"s, 1021182 102Ioss
Close 102un 102"as 102",, 102,,,, 102"s, 102"ss
107
71
16
201
15
133
Taal sales in $1,000 snits—
/
41
High 100"n 10023n 100",,100"n 100",, 100,1
11)1e, 1943-1947
Low. 1002,12 100,,s, 100"n 100"st 100,,n 1001%
(close 100"st 100"as 100,,r, 100",, 100"n 100,,,,
Total sales in $1,000 units—
21
1
22
41
114
17
(High 97
97
96"n 96,11, 96",,9679n
96",3s
1951-1955
Low_ 98n
96",,96", 96"at 96"n 96"n
Close 96"s, 96"n 96"n 96",, 96"s, 961,n
Total sales in $1,000 units_
25
7
163
33
20
146
fuel' 10028,1 loosen 100", 100",, 100",, 100"s,
3345, 1940-1943
Low_ 10017n 10014n 100", 100",, 100,,,, 100"as
Close 10071n 1002111 100"n 100nn 100nn 100"ss
Total sales in $1,000 units....
52
6
113
34
11
12
(High 10011,1 100%1 100,81, 100",, 101
100"st
10",34s
194143
Low_ 100nt, 100u
100nt 1001% 1002t. 100",
,
Close 100un 1002811 100u, 1002811 101
100"n
Total sales in $1,000 units—
138
6
s
18
5
6
(High 98%
98",, 98ns
98ns, 98781
98tsi
3345. 1948-1949
Low_ 9871,
98,
98,
st
s, 98,
,, 98',, 93%
Close 981,11
981,3
98',, 98,as
98,11
98,
n
15
773
157
KR
118
137
Total sales in 21.000 units_
{
Note.—The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
2 4th 411s
103"n to 103uss
Foreign Exchange.—
To-day's (Friday's) actual rates for sterling exchange were 3.4450
3.46 for checks and 3.44 11-16 @3.461-16 for cables. Commercial on banks.
3.46Y@3.451-4; sixty days, 3.44 X 03.4534; ninety days, 3.443403.447 ;
and documents for payment, 3A53403.4554. Cotton for payment, 3.4534.
To-day's (Friday's) actual rates for Paris bankers' francs were 3.913408
3.91 13-16 for short. Amsterdam bankers' guilders were 40.15040.1634.
Exchange for Paris on London, 88.09; week's range, 88.37 franca high
and 88.03 francs low.
The week's range for exchange rates follows:
Sterling Actual—
Checks.
Cables.
High for the week
3.46 X
3.46%
Low for the week
3.44%
3.44 11-16
Paris Bankers' Francs—
High for the week
3.91 13-16
3.92
Low for the week
3.9154
3.9154
Germany Bankers' Marks—
High for the week
23.79
23.81
Low for the week
23.77
23.79
Amsterdam Bankers Guilders—
High for the week
40.17
40.18
Low for the week
40.0934
40.1334
CURRENT NOTICES.
—Hornblower & Weeks have prepared a special circular on Home Insurance Co., of New York, with a review of the record of fire insurance
company stocks.
—Frederick Kauffmann announces the formation of Kauffmann & CO.,
with offices at 44 Pine Street, New York, to transact a general investment
security business.
—Ryan & McManus, New York City, announce that Frank L. Walin,
formerly with Jenks, Gwynne & Co., has been admitted to membership
in their firm.
—Frank Horne, previously with Graham, Parsons & Co., is now connected with W.F. Sey & Co.,Inc.of New York,in their trading department.
—Burton, Cluett & Dana, members of the New York Stock Exchange.
are moving to larger offices at 120 Broadway, New York City.
—H. Clark Mooney, formerly with Chisholm & Chapman for the Past
six years, has become associated with Josephthal & Co.
—George MacDonald and Wm. W. Tracy have joined the retail sales
department of Goddard & Co., Inc., of this city.
—J. Edward Atkins has become associated with the trading department
of Fenner, Beane & Ungerlelder, New York office.
—Safford Adams has become associated with Allen & Company of this
city, in their wholesale department.
—W. Wallace Lyon & Co., announce the removal of their offices o
40 Wall Strect, New York.
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
•
125
,
FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE PAGE PRECEDING.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Sept. 24.
Monday
Sept. 26.
Tuesday
Sept. 27.
Wednesday
Sept. 28.
Thursday
Sept. 29.
Friday
Sept. 30.
Sales
for
the
Week.
$ per share $ per share $ per share
per share
per share $ per share Shares
5712 594 5358 5918 5312 5638 54
5738 5478 5734 54
55,8 50,500
.71
72,4 71
71
71
72
71
.70
72
71
71
.70
500
33
3412 32
31
3212 3112 32
31,4 31
3112 2912 30
2,800
1812 1934 17,4 1912 1734 19
18
1878 174 1878 1638 1734 49,600
2234 23,4 2114 2334 2112 22
21
22
21
22
2012 2118 5,800
32
.30
30
2912 2912 .
30
29
32
30
*2812 30
30
300
92 .87
.87
92 •87
90
87
87
87
87
•86
87
50
.1212 1412 12
12
.10
15 '10
15
12
12
1114 14
400
.434 534 *434 534 *434 6
*434 5
5
5
*434 612
100
.44
54
52 .44
*44
47
44
44
*4438 5438 *4438 5438
200
22
231s 21
23
2012 22
22
2238 21
17,000
224 2038 22
62
624 614 6158 61
614 6112 6112 6112 6134 *59
61
1,200
.1
114
1
114
1,4
114 .1
114 •1
114
1
1
610
1734 18,4
1612 18,8 17
1734 17
1778 1634 1734 1612 17,4 106,800
.57
64 .
57
64
.57
64 .57
64 .57
64
*57
74
2638 2678 24
237
8
2612
2514 2412 2512 2412 2538 2378 244 57,800
438 478
478 478
438 438
418 4,4
412 418 2,200
44 438
13
1338 1214 13,8 1214 13
1232 13
1214 13
1214 1278 17,900
3i2 382
3
3
3
34
318 3,4
314
312
314
34 3,000
54 6
518 578
5,4
5
512
518 538 12,900
534
5,2 6
1034 11,4
912 1038
94 11
97/f 1038
912 1012
94 97g 32,900
.1612 19
1634 1634 16
1612 1612 1612 1612 1612 '16
600
17
1012 1012
9,4 10
912 912
9
9,4 938
9
1,800
*914 10
17
17
1614 16,4 15
14
*1414 15
15
14
•144 15
700
•14
1434 •12
14
•12
14
•11
13
14
•11
13 '10
•2214 31
*2214 31
•2214 2978 .2214 29
*224 29
2214 29
4
4
378 4
3
3
4
312 312
4
'312 4
1.700
7912 81
8034 81
76
78
78
*74
76
77
78 .75
1.700
4212 4412 38,4 4334 3812 4138 3812 4214 3918 4214 3712 40 116,000
•528 8
•6
8
*5
8
.5
8
*5
.5
8
8
978 10,4
9
9
10,4
8
818 3,200
912
812 9
9
012
1212 1212 12
11
1212 1114 1112 11
11,4 1114 •1012 1112 1,900
814 814
*814 9
712 .
200
814 8,4 "6
812 .6
5,2 8,2
1858 1914 17
1978 17
1814
1712 184 1734 1878 1718 184 34,400
.6
6
6
•612 8
8
6
.
5
.
6
614
712
714 .
100
*1112 124 11
1312 12
1334 .12
12 .
11
1212 '12
14
1,800
•20
207s 20
19
20
2014, .19
20
1918 1.400
2053 191, 20
2114 2238i 1918 2134 1918 2118 2014 2138 1978 2138 194 20% 26,900
.982
•1018 12
11
11
.
8
11
•8
10
11
30
11 I'
8
412 5
44 412
412 412
412 412 3,400
412 473
412 412
•1 1
12112 12,4 1214 .934 12
12 I 11
•10
11
200
•934 11
.1814 22
22
20,4 20,4 *20
22
22 .1812 2178 •1734 214
200
24
22
203.1 22
244 •16
2212 2212 22
22
204 21
2,800
3034 31 14 284 3034 2812 30
29 '26
30
28
30 l *25
1,900
5
512
5
553
512
5
5
5
538
3,100
5
5,2 512
618 6
•518 612 .
*51s 612 *51, 612 *518 612
100
518 5,8
4,28
*h
12
.
38
12
12
*4
12
12
*38
•3
*3
•3
4
4
•3
4
4
*3
•4
4
*3
1112 1212 10,8 114 10
104 1038 11
10
1114
912 11
23,200
2214 23,4 2034 2234 20
21
2112 21,2 21
21
201 1 2014 3,900
718 734
8
814
712 8,4
738 7,2
64 74 4,900
74 734
1418 1438 1134 14,8 1212 13
1212 134 1214 13,2 11 18 1234 12,600
*14
38
•84
14
14
100
*14
N
•14
14
318 .
N
314 324 284 3134 2834 304 2914 31,8 2918 31
2812 2912 165,900
6,4 6,4
6
6
6
614 612
6
5
512 1,600
534 534
534 712
"738 838
914 10
838 9
7
7
614 712 2,300
11714 11714 115 11512 •112 11978 •115 11978 117 11812 •11112 116
60
23
24
2014 2338 2012 2134 2112 2218 2058 2134 1938 2138 16,100
3812 3812 36
39 .3414 37
3734 .34
*3512 38
36
3612 1,000
1134 1238 10,4 1178 10,4 1138 1012 11,2 1034 1112 1012 11
5,000
4.8.2
CI,
7,
.22
7,
'13,
h
100
'8
38
•2
3
2
238 •2
2
234 234
300
214
238
214 .
2
10634 109
10512 10582 10534 106
2,200
10612 10612 10712 108
107 109
76
76
60
.76
7734 *76
7734 .76
7734 7734 7734
774 *77
2278 2334 1978 2312 2018 2212 2134 2278 2134 2278 2114 2418 56,800
•218
278 *1
278 .1
278 *1
278
278 *1
278 •1
214 2112 19
2138 1918 2012 1912 2038 1918 204 1838 1938 68.700
•312 4
*2
.3
4
.2
.
2
4
*2
4
4
4
.8
14
.8
•94 14
.8
14
.8
14
14
'8
14
•16
17
16
16
860
16
16
16
1634 164 16
16,2 16
14
1412 14
14
14
14
14
.14
250
14
14
14
15
15
15
•12
18 .10
19 '10
100
19 .12
19
19 .10
45
4438 4434 43
45
44
*43
4414 .40
900
4414
4414 •39
•2,112 33
•2412 33
*2412 33 .2412 33 .2412 33 .2412 33
.2412 30
.25,4 30 .2514 30
*2412 30
*2412 31
.2412 31
312 358
312 312
312 334
338 338
3,2 334
31 1
314 2,900
4
438
412 478
4
438
4
418 4,4
4
334 334 5,500
•11
12
*9
12
1312 .9
•10
14
*10
14
.9
12
•16
•1612 24
•16
24
24
•16
24
24
.1612 24
•16
I.
12
12
12
12
12
3,500
58
58
33
12
82
*78
•34
34
1
1
1
1
400
1
1
*34
3012 32,4 2712 3112 2738 30
2778 3014 2818 3014 2714 2834 114.700
1278 1334 1212 1312 1218 1314
1418 1412 1212 14
1258 9.300
12
174 184 •1414 18
17
17
•1612 1712 '15
1612
700
16,2 *15
•17
•17
35
"17
3478 .17
3478 •17
35
3478
3478 •17
578 578
*6
6,4
534 6
500
•
61, .
512 578 '5,2 578
234 24 •278 3
3
3
3
3
500
278 278 '234 3
.11
15
*812 14
.812 14
*812 14
*812 15
"8,2 15
7912 8138 754 81,4 7514 7812 7512 7812 74
74
79
7512 29,50C
.64
64
.62
6434 64
6212 6434 '62
200
6434 .
6434
6434 .62
3
3
3
3
3
3
3
314 314
1,600
3
3
3
4
4
418 4,8
412 *312 412 *334 4,4
300
4,4
4,4 *4
878 978
878 9
958 94
84 9,4
818 8,4 7,600
812 94
.812 10
*6
10
*812 10
*734 10
*7
10
.614 10
1
•3
300
.3
*3
312
3 4 34 *3
3,2
314
34
312 312
6Is
538 512
5
3.500
5
614 612
5,88
514 514 •514 6
1
.312
•18
*8614
8
*6512
•17
1178
.3
61
.2
978
•234
238
678
*534
•514
.3,2
12
1
52
1 18
1 18
4
78
2
2
218 234
378
312 3,2
2412 20
21
2134 22,4 2212 2212
1044 •80 10434 *85 1044 .80 10434
712 8
7,4 838
8%
7,8 734
66
•6512 66
6512 65,2 •6512 66
•1712 1778 174 18
1812 18
18
1138 1138
1112 1112 114 12
12
312
312
312 .314 3,2 .3
312
6012 5878 6112
614 5734 6134 58
2
2
2
2
*2
214
214
10
1138 11 18 1112
94 10
10,4
312 •234 3,2 *234 312 *234 312
212 2,
212 24
212 234
234
617
6
6
612 63s .6
7
*612 612 •512 7
7i2 •512 7
•512 7
*512 7
7
.5,2 7
.8i2 11
812 812
*812 11
13
.18 24 *80 10434 .80 10434
678
738
738 8
6512 6512 6512 6512
1614 18
•1612 1734
12
12
1114 1138
•3
312 *3
3,2
60
6112 x5714 5914
2
2
.134 2
1038 1118 1012 1034
.234 3
.234 3
2,4 2,2
238
2,4
6
6
534 534
512 512
*514 6
'5
614
'514 6
1014 1014 104 10,1
• tt,l and asked prices: no sale, on this day. z Et-dividend.
p Ex-rights.
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range for Year 1932
On basis of 100-share lots.
Lowest
Highest
PER SHARE
Range Jo Previous
Year 1931.
Lowest
Highest
Railroads
Par $ per share $ per share $ per :hare $ per share
Atch Topeka & Santa Fe__100 1778June 28 94 Jan 14
7914 Dec 20338 Feb
Preferred
100 35 July 9 86 Jan 18 x75 Dec 10814 Apr
Atlantic Coast Line R1t, 100
Jan
93451ay 26 41 Sept 2
25 Dec 120
Baltimore dr Ohio
2138 Jan 21
100
334June 1
14 I)ec 8778 Feb
Preferred
100
6 June 3 41 12 Jan 14
25 Dee 8012 Feb
Bangor & Aroostook
912June 2 3534 Aug 2.
50
18 Dec 6634 Feb
Preferred
91 Sept 13
100 50 June 1
80 Dee 11312 Mar
Boston dr Maine
4 July 13 1034Sept 2
100
10 Dee 66 Feb
Brooklyn & Queens Tr_No par
278July 6 1014 Mar 8
1338 June
612 Oct
Preferred ______ __ _No par 2314June 28 68 Mar 5
46 Dec 6434 June
Bklyn Manh Transit__ _No par 11 18June 8 5014 Mar 8
31 18 Oct 6938 Mar
16 preferred series A_No Par 3112June 8 78,Star1
63 Dec 9414 Feb
Brunswick Ter & Ry SecNo par
12 Apr 13
218 Aug 11
1$8 Dec
912 Feb
Canadian Paciffo
2058Mar 5
1034 Dee 4538 Feb
25
714MaY 31
Caro Clinch & Ohio stpd 100 39 July 26 70 Feb 6
Apr
72 Dee 102
Chesapeake & Ohio
2338 Dec 4612 Feb
25
934July 6 3112 Jan 14
Chicago Great Western__ 100
212 1)ec
518 Aug 29
114June 2
778 Feb
Preferred
212Slay 25 1512 Jan 22
712 Dec 2712 July
100
Chic 5111w St P dr PacNo par
412 Aug 25
112 Dec
878 Jan
114June 1
Preferred
1 18May 26
212 Dee
1538 Feb
8 A ug 25
100
Chicago & North western,100
5 Dec 4512 Feb
1412 Aug 25
2 May 31
Preferred
5 June 29 31 Jan 22
1312 Dec 116 Mar
100
Chicago Rock 181 & Pacific_ 100
77a Dec 6512 Jan
112May 25 1638 Jan 22
7% preferred
14 Dee 101 Mar
414May 26 2712 Jan 14
100
6% preferred
1018 Dec 90 Jan
2 May 25 2412 Jan 14
100
Colorado & Southern
412June 29 2912Sept 23
100
74 Dec 48 Jail
Consul RR of Cuba pref_100
10 Dec 4212 Feb
1112 Jan 2
278July 21
Delaware & Iludson
64 Dec 15714 Feb
100 32 July 8 9212Sept 3
Delaware Lack dr Western_50
Jan
812June 1
1734 Dec 102
4578Sept 23
Deny & Rio Or West pref....100
112May 28
31/ Dee 4534 Feb
9 Jan 13
Erie
2 May 31
5 Dee 3934 Feb
1 ,1148ept 8
100
First preferred.
63, Dec 4512 Feb
100
238May 19 1578 Aug 2
Second preferred
6 Dee 4012 Jan
100
2 May 25 1012 Aug 25
Great Northern pref__
6125lay 28 25 Jan 14
100
1558 Dec 6934 Fen
Gulf Mobile dr Northern.,....100
2 May 3 10 Sept 8
312 Dee 2714 Feb
Preferred
1512Sept 8
Jan
100
3 June 1
13 Dec 75
100
8 May 31 3044 Jan IS
Hudson & Manhattan
2614 Dec 4412 Feb
Illinois Central
434June I 2478Sept 6
100
918 Dec 89 Feb
RR Sec ctfs series A_ _ _1000
4 Slay 5 1412 Jan 27 Dec 61
Jan
Interboro Rapid Tran v t c_100
214June 10 1458 Mar 7
438 Dec 34 Slur
Kansas City 8outhern
214June 1
100
15I,Sept 8
67a Dee 45 Feb
Preferred
100
5 June 9 2514Sept 2
15 Dee 64 Feb
Lehigh Valley
50
5 June 8 291 f Sept 8
8 Dee 61
Jan
Loulsville dk Nashville
712May 26 3S1 Sept 2
100
2014 1)ee III
Feb
Manh Ry Co mod 5% guar.100
4 June 8 2034 Mar 8
678 Dee 39 Feb
Market St Ity prior pref__ _10
9 Jan 21314June 2
512 Dec 22 Feb
Minneapolis & St Louis_ _ _ 100
18 Jan 12
IR Aug Ii
18 Der
34 Jan
781)1ay 13
438Sept 7
Minn St Paul dr SS MarIelOO
1
Dec 11 12 Feb
Mo-Kan-Texas RR----No par
114May 26 13 Sept 23
378 Dee 2634 Jan
314June 1 24 Sept 23
100
Preferred series A
1012 Der 85 Jan
Missouri Pacific
1 12May 25 II Jan 22
100
638 Dee 4234 Feb
Cony preferred
12 Dec 107 Feb
100
212May 26 26 Jan 26
Nat Ky.of NI exico 2d pref_ 100
78Sept 3
la Feb 9
18 Oct
12 Jan
New York Central
834June 2 3658 Jan IS
100
2478 Dec 13214 Feb
N Y Chic dr St Louis Co.-.100
1 125tay 18
934Sent 8
212 lief. 88 Feb
Preferred series A
2 June 2 1558 Jan 22
100
5 De, 94 Mar
NY & Harlem
Dee 227 Feb
50 8214May 18 12112 Aug 16 x101
N Y N II & Hartford
8 May 26 3158 Jan 21
17 1)ec 9478 Feb
100
Cony preferred
52 Dec 11958 Feb
100 1178July 6 7834 Jan 14
N Y Ontario dr Western
338July 12 153413ept 8
514 Oct 1378 June
100
N Y Railways prefNo par
Feb 26
1
14 Apr 19
Is Dec
2 Fel,
Norfolk Southern
12June 1
34 1/ee
33iSeDt 6
100
814 Jan
Norfolk & Western
100 67 June 27 135 Feb 17 10558 Dee 217 Fell
6512 1)ec 93 Mar
Preferred
100 65 July 5 78 Jan 22
Northern'
1412 Dee 6078 Jan
,
512May 26 2538Sept 8
settle
100
Pacific Coast
312Sept
@FedFRASER