Evening Star Newspaper, March 29, 1925, Page 38

HIGHLIGHTS NOTED IN'BOND SITUATION Far| Decline Has Gone Enough to Revive Invest- ment Interest Issues. BY GEORGE T. HUGHES. Special Dispateh to The St NEW YORK, March 28.—In view of the week's severe reaction in Se- curities, most marked in stocks, but which has not spared bonds, some re- examination of the situation may be helptu The thing to be said is that th has gone far enough to Te h an investment interest, which wis lacking while prices were | being bid up to record levels with The the iscrimination: istrated by ilroad stocks. s exclusively appreciation st little or no can den pr is uninter: his security the other f all income and in his holdir Averng e a seasoned 1d ecommon ste dividend rate He rate on pays. Recent divid k, f is 7 pe th around 116 to he investment sub, tirely of estor, ought t obta Ir th it is with u must ant at k ownership if prices a those the for risk with course, is the san beiow crad o that wide iine the in- mar- meant vestment wtracted to of dividend There is, of never any certainty that such an imption is correct. This is the ik inherent in stock ownership, and sannot be avold »nd point, is the out- ilroad earn- nged. eours It must be nings on w adm ke h t itted that L discouraging ot ary com- at and t fair e of two xt, e Pan-Ame the importance Canal competition about which so much is being said t now in speculative circles. This competition is one of the reasons as- signed in the official statement for the troubles of the was pointed out in t ago that the »ad that had traflic to the road men st and Paul is been | “big call the mpetition hys been ditc going o no 1 it th stocks ths The with respect tion, little competi- of the Paul's from least which slgngd Apparently is difficulti this sou it v while class roads showed a of 5 per cent over the same month pas- senger receipts declined 3.3 per cent o imp thing, h , is net ome tom fferenc fhethe s fro ight or| Passenge tie, provided it is &dequate er char dividends and show isfactory addition to| surplus Outlosk Muck Confused. What hs en said with regard road stocks appiies ailroad nior bonds and to a less degree to dustrial stocks and bonds, although it must be admitted that here the outlook confused. But it is matter of financlal history that the umber of stockholders in Americ in- rial corporation es as the price of the < goes lower in the market and when the Teverse move- ment in quotations is in progress.. It does somehow 1o though the small investor has a wisdom in these m much deeper than he is gen- iven credit for URGES HIGHER RATES. o & Northwestern Head Favors New Schedule. NEW Y March 28.—There is only one fecting the railroad sitnation a = northwest, aceordin i esident of the Chicago & Northwestern. He tributes the difficulty to freight tes, which, b ¥s, were not com- yensatory for the volume of traffic be- inz handled and not commensurate with rates in other territories. Th volume of freight in February w not as large vorable dered that pointi st year, but was fa- he asserted, when it was con- the s dis- FOREIGN EXCHANGE. Pross YORK, March cxchanges casy; quotatior Britain, demand, 3-16; ca 16; 60-day bills on banks, -16; France, demand, 5.26; cables, 6% Italy, demand, 4.08 bles, 4.08%; Belgium, demand, 5.12%; Ger- many, demand, 80: Holland, demand, demand, 15.64; Sweden, Denmark, ~demand, d, demand, 19.27% and, demand 1.60% Spain, d mwand, 1. Czeehslov slavia, dem mind, 0014 ec Austria, demand, PAEISi MARKET fi'NSi‘EADY. PARIS, March 25.—Prices moved ircegula on the Boarse today. Three per cent rentes, 46 francs 80 centimes. change on London, 9 francs 55 centimes. Five per cent jan, 56 francs 70 centimes. The dol- lar was quoted at 1S francs 94 cen- times. Woman playwrights in the United tates are pwding the men in point divi- 1 in handt then from bonds, much vield time different | i 101 28 102 2904 1064 117% 107 8T% T8% 1061 99 1054 102% 94 8% 85% 52 T84 13 4 99 79% 100 46% % 117% 111 82% 8% £9% 85 96% 884 31 84% 108% 8% 48 324 102% 96% T8 69% 62% 50 | 52 82 | 6215 & 11123 105% HET T B5% T3% 93y £9% 1184 1124 /% 1% 104 100% 106% 102% ol% 80% 851 8l% 103% 974 83% 664 95 B4l 4% 61% 66 53% 667 b 7 B 1077% 102t | 1173 110% 1013 96% i 110% 106%% | S8R 80% | 6913 58% 1101 100% |'s0 o8% | 9s 824 70 40 821 3% 7% 67 91 86 99% 94% 7 92% 9au 88% 107 104% =88 E8% 108% 101% 8%, 6% 79% 51% 8% 8% 65 5l% 100 87 95% 89% 100% 95 113% 108% 55% 36 87 b9 63 394 | s1% €6 | 133% 106% 62% 56% 86% 80% 108% 101% 98% 924 106% 101% B4 9% o5 90% 104% 9 111 107% 88% 21 9% 91% - g5% 874 3% 60 874 T4 86 2 734 753 954 865 817 102% 1073 101% 58% 39% 94 88% 100 95% 97 92% 101% 6% 6514 63 198% 79% FYORR Low THE SUNDAY STAR, BOND SUMMARY FOR THE WEEK “High, Low 1. S. BONDS. High, Low. last. Yield. 101=24 100-2% Liberty 338 1932-47..... 101 15 101-8 1019 332| 102-1 10§14 Liberty 1st 4%s 1932-47., 101-26 101-19 10122 4 00 101-31 98-4 Liberty 2d 43¢s 1927-42 100-31 101-29 393 101-17 101-1 Liberty 3d 41, 1928. 101-21 101-18 2 83 102-4 101-20 Liberty 4th 41 1933-38.. 102~ 101+27 401 105-3 104-4 Treasury 4%s1947-52... 104-28 104-18 104 22 394 1925 Prev. week's low. FORE! Clowe. . Tow. Last o Argentina 6s A 1957. 9643 96 96% Other 103 Argentina 7s 1927... 1025 102% 10214 96 Austria s £ 75 1943 . 9% Sin A% 877 Belgium 6s 1955. 4 H 109% Belgium 7%s 1945 109% 107% 108 BY CHAS. P. SHAEFFER. 1074 Belgium 85 1941 107% 1074 107% | A first mortgage company Is ome of £47% £3% Bordeaux 6s 19 83% the most misunderstood fmancial ma- 974 Brazil 8s 1941. 96 chines in modern existence. How can 104 4 Canada 55 1952 108% a company of thls sort pay attractive 10315 Canada 515 1929 1024 dividends and show earnings of many 10815 Chile 85 1926 1021 times their interest requirements 108% Chile 8s 1941. 107 without recourse to exorbitant 108, Chile 85 1946. 106% charges on their loanable funds Is 448 Chinese Govt Ry 6s 1951. X the perplexing problem that s much 97% Copenhagen 51s 1944, 3 discussed in investing circles by the 1014 Czechoslovakia 85 1951 : {uneducated in matters financlal. 103 Denmark 681942, The answer is, of course, a perpet- 111 Denmark 8s 1945, Y uation of working capital—in other 103 Dutch East Indles 65 1947.. 99% words, a constant turnover of funds. 102y Dutch East Indies 6s 1962. 99% A first mortgage company, in the 10uts French Govt Ts 1941. . 961 first place, is an agency for lending 104% French Govt 8 1945 160 money financing first mortgages. 95% erman 7s 1949.. . 92% 94% | Banks lend money, also, yet they are Holland-American s not competitors. First mortgage Japanesc 4s 1931, 81% [companies make loans that banks Japanese 6%s 1954. . 90% 90% | could not consider for reason of the Jergens Utd Margarine 6s 93% 93% |size of the loan, its maturity, which Lyons 651934..... 84 B4 Imight necessitate a long tle-up of Marsellles 85 1934 84 B4 |capital, or prohibition by banking Netherlands 63 1972 108 103% | Siavutes Norway.8s 1840. ... . 10| These companies are of paramount Paris-Lyons-Med 6; 208% ““: * | financlal assistance to any community 94 4% 3 shing- Rio _de Juneiro Bs 1946 9% 100 |ton. Droperly capitallzed and con- Sao Paulo, State of, 85 1936. 100 7 |servatively managed, are performing 907 Seine, Dept of, 7s. “l‘.\k 87 |a useful mission. TLocal banks having 104% 1034 Sweden 6s 1939 103 108 credit relations with these companies 3 o 101% 1017% ort s as satisfacto; Many, o e 13502 115e; |however. have sufficient capital of T < e & - 614 | their own to enable them to handle a 107 104% United Kingdom 5%s 1937 5 U T RO Bl INDUSTRIAL AND MISCELLANEOU! borrowing. 101 94% Amer AgriChemical 738 1941... 96% 96 99 Funds Kept Active, 9714 951 Amer Smelt & Ref 15t bs 1947. 981 96% 97 NP sy o PR 1084 108% Am. Smelt Ist 68 1942.......... 107 10615 106% | The 8 pasl, M jHor 3 991 Amer Sugar Refining 65 1937. 101% 1018 1027 | €8S Corpanion ‘wers [organized for 961y Amer Tel & Tel cl tr 4s 1929 967 96% 96% |the purposs of making construction 100 Amer Tel & Tel ol tr 53 1346, ..... 100% 100% 1001 |10ans and mortgages through the pur- ~ 53... 5 1 1y | chase of first trust paper on real 994 Anaconda Copper 6s 1953. 1004 9915 99t | cha Sk - = 104 100 Anaconda Copper cvdeb 7s'38... 101% 100% 101 |cstate. It was never intended that 5. Arnoura Go L1989, o v §6% &7 |this paper should repose on the Atlantic Refining deb 63 99% asts 98% | shelves of the lending corporations— % Bell Tel (Pa) ref 6s1948. . 101 1008 1011 | nor does it. Instead, it is resold to Bethlehem Steel p m bs 1936 914 90 901 |purchasers and the acquired funds Bethlehem Steel s f 65 1943, 944 94y 941 |are again avallable for loans. Chile Copper 65 1932....... - 106, 105% 105% | Companies engaged in this business Cons Coal (Md) 1s ref 53 1950. . 854 84 843 | exact commissions for making loans. 4 Cuba Cane Sug cv Aeb 8s 1930.... 101% 100% 101 |In th espect they are not unlike Detroit Edison ref os 1940. . 107w 107t 107% [ any underwriting concern. This com- Du Pont de Nem 7%s 1931. 1075 107% 1071% | mission, in first mortgage circles, is Empire Fuel & Gas 7%81937..... 101% 101 101% | equivalent to the fee of the under- General Elcetric deb 5s 1952 103 103 103 |writer, who, for instance, purchases Goodrich (B F) 6% 1947 104% 104 104% [ bond fssue at 97 or 98 and imme- % Goodyear Tire 8s 1931 .. 109 108!y 1084 | diately resells the issue at par or a Goodyear Tire 8s 1941. 120 119% T19% | higher figure, the profit representing 5 Humble Oil & Ref5%51932...... 100% 100z 1007 | funds to care for expenses incident Indiana Steel 55 1952. . 101% 101% 102% |to the flotation of the offering. So Inter Mer Marine 65 194 894 8814 88% |it fs with first mortgage companies. Inter Paper 6s B 1947.. €8 8712 88% | The commission is regulated entirely Kelly-Springfield 8s 1931 97 90 95 [by the nature of the loan. A long- Lackawanna Steel 5s 1950. 9314 934 98%|term loan of large denomination % Liggett & Myers 0s 1951. L. 1004 99% 99% | would, for instance, demand a greater Magma Copper 73 1932 coe 1184 117 117 fcommission than would one of smaller Manati Sugar 8 £ 7%s 1842,..... 100 101% 100 100 |size maturing in half the time. And § Midvale Stecl 58 1936, seee 904 90% 90K 90% it js this commisslon that returns New England Tel 6s ‘su, - :?g‘ {‘l’g‘- 99% 100% | the profits to the companies. 4 New York Edlson 15t 6%s . 118% A NYGasELHG& P 551948 101% 102 Méchady fn-Ommmen Une:, New York Tel 41651939, 96% 961% The prescribed method of turning Vew York Tel 6s 1941. .. 1067 over funds is best exemplified by a North American Edison 6s1952.. 1005 j recent statement by Harry A. Kite, 4 Pacific Gas & Elec bs 194 head of the Mortgage Bond and Guar 102% 89 3% Pacific Tel & Tel 6s 195 95 Philadelphia Co ref 65 1944, 1047 Sinclair O11 7s 1937 . 9l Skelly 6las 1927.. 1082 South Porto Rico Sugar 3 103t Union Bag & Paper 6s D. 5 94m United Drug 6s 1944. ... 5 101% 85 U S Rubber 1st & ref is 1947 85% 104% U S Rubber 71481930..... 105 1044 U S Steel s 551963.. 105 91 Utah Power & Light 58 1344. . ..., 941y arolina Chem s f 75 1947. . 8544 Carolina Chem 7345 ‘37 war. 5% ‘Western Union Tel 615 1936 110% 915 Wilson & Co 1st 65 1941.... 9515 53t% Wilson & Co cv T%s 1931 T34 RAILROAD, 4 Atchison gen 451995, .. ... s0% Atlantic Coast Line 15 ¢s 1952, 915 Balto & Ohio gold 451943, .. 88 Balto & Ohio cv 4351933, a1k Balto & Ohio ref s 1995. 89t % Balto & Ohio 651929, 1035 B&OPItsLE& W Vads 1941, +614 B & O Southwn div 314s 1925. 100 Brooklyn-Manhat s f 63 A 1968. ., 84 Canadian Northern 6345 1946. % 117% Canadian Pacific deb 4s 794 4 Central Pacific 45 1949, frod Chesapeake & Ohio cv 4355 1930., 96%, Chesapeake & Ohio gn 4145 1992, B9%, Chesapeake & Ohlo cv 58 1946. .. 1031 Chicago & Alton 3%s 1950. Bis Chi B & Quincy 1st ref 5s 1971 101% Chi & Eastern 111 gen 55 1951. Chi Great Western 4s 1959 ChiM & St Paul cv 41381932 Chi M & St Paul gen 4145 1989 Chi M & St Paul ref43es 2014. Chi M & St Paul cv 68 2014. . Chi & Northwestern 6%s 1936, Chicago Railways 53 1927. Chi R I & Pacific ref 4s 1934. % Chi Union Station 4%s 1964 Chi Union Station 6%s 1963. . Chi & Western Ind con 48 1952 CCC&StLref 65 A 1929 Cleveland Term 5%s 187 Colorado & Southern 4%s 1935. Cuba R R s 1952 Delaware & Hudson Den & Rio Grande con 4s 1936, D. & R. G. West s 1955, Detroit United 4%s 1932. Erie 15t con 4s 1996. Erie gen lien 4s 1996, Erie cv 48 A 1953 4 Erie cv 4s D 1953 Grand Trunk s f 5% Grand Trunk 7s 1940. . 100% Great Northern gcn 109% Great Northern gen 7s 1936..... 86% Hudson & Manhattan ref §s 1957 67% Hudson & Manhattan adj 58 1957 Illinois Central 5165 1934.. . Inter Rapid Transit 5s 1966. . Inter Rapld Transit cv 7s 1932 Inter & Great Nor adj 6s1952. .. Kan C F't Scott & M 45 1936. Kansas City Southern 3s 1950 Kansas City Southern 58 1950 Lake Shore 4s 1928. Lake Shore 45 1931. Louis & Nash unified 4s 1940 Louts & Nash 1st ref 53%s 2003 Mil Elec Ry & Lt 1st ref 58 '61 MStP&SSMG6%s1931. . Mo Kan & Tex 1st 45 1990. Mo Kan & Tex adj 68 1967. Mo Kan & Tex pr In bs A 1962 Missouri Pacific gen 4s 1975, Missouri Pacific 65 1949. New York Cent deb 45 1934. New York Cent ref imp 5s 2013.. ., New York Central deb 6s 1935. New Haven deD 4s 1957 NYNH&H cvdeb6s 3 N Y West & Boston 4%s 1946.. .. Norfolk & Western con 45 1896.., Norfolk & Western cv 6s 1929 Northedn Pacific 3s 1947 Northern Pacific 48 1997..... Northern Paclfic ref imp 6s 204 Ore Short Line ref 4s 192! Ore Short Line gtd 55 194 Ore-Wash 1st ref 4s = Pennsylvania gen 4%s 196 Pennsylvania gen 5s 196! Pennsylvania 6%s 1936. Peoria & Eastern inc 45 1990. Pere Marquette 1st 55 1950. Reading gen 4s 1997, Rio Grande Western clt 4s 1949 3 RIATk & L 43%s1934. StLIM&SR & G 451933 St L &San Fran prln 4s A 1950... 4 St L & San Fran pr In 65 1950. St L& San Fran §%s B 1942 St L & San Fran adj 6s 1956. t L & San Fran fnc 6s 1960. eaboard Air Line ref 4s 1859 Seaboard Air Line adj bs 1948 S board Air Line con 6s 1945 outhern Pacific cv 4s 1929 outhern Pacific col 4s 1949 outhern Pacific ref 4s 1955 % Southern Ry gen 48 1956 Southern Ry 1st 58 1994. . Southern Ry dev 635 1956. Third Ave adj 5s 1960 Union Pacific 1st 4s 1947 $8% Union Pacific cv 45 1927. 95 Virginian Ry 1st 6s 1962 100% Wabash 1st 55 1939... 63% Western Maryland 90% Western Pacific 55 1946. . 80% West Shore 1st 48 2361... 100% 110 87% BALTIMORE PRODUCE. BALTIMORE, Md., March 28 (Spe- cial).——The local egg market is very sensitive to the daily offerings and has fluctuated the past week, al- though price changes have been small and have vareid only a cent a dozen between opening prices on Monday and closing prices today. If offerings on the egg exchange were liberal the bidding was easy. and If they were moderate the bidding was more active. Demand has been fairly good all week and as a consequence [an desirable st cleaned up read- ily and today there is littls stock held over, with the prices holding firm at 29%al0 cents a dozen for native and nearby firsts in free cases. Packers will start taking hold next week and llberal shipments are ad- visable while conditions remain favorable. Duck and goose egES continue in good demand. Receipts have been only fair and haye cleaned up rapldly at full quotations, with the prices holding steady at 50 cents a dozen for native and nearby duck eggs and 95 to 1.00 for goose eEBS. | No oversupply In daily receipts and | shippers can let their stock come forward liberally without fear of a rop In price. 4 Pith the exception of ducks and geese, the live poultry market rules | firm under a good and constant de- mand for fat, smooth stock of all kinds. Young chickens continue in clpt and meet i rlea:dgy s t 85 cents a pound, while Leg- Horns bring 30 and rouglh, poor stags 25, Winter chickens, 2 pounds and under, ave scarce at 45 and 50, while Springers, 1 to 1% pounds are wanted at 55 and 60. Old hens in only moderate receipt and deman more active at 27 to 30 for medium to large and 25 for small an horns. L hrket for turkeys remains :::ifl and the few late arrivals find ready sale for choice hens at 45 and young gobblers at 40, but heavy old Toms and poor and crooked breasts are not %o desirable, and consequently Slow siles at 35 for the former and 25 for the latter. Guinea fowls scarce an | \anied at 90 to 1.00 each for large | young and 30 and 60 each for smnlld, and old pigeons in light receipt, anc market rules firm at 50 cents a pair for both young and old. Demand has ¢ for both ducks and geese, cased of a and market rules easy at 28 to 30 & pound for large ducks and 25 for tmall and poor, while geese sell 4 to 26 as to quality and con- Season for dressed poultry otically over, and capons are ?;;?y Hney that is in demand now. TLarge birds, 6 pounds and over, meet with ready sale at.40 to 45; medium. 5 to § pounds, 36 to 40, ile even smail slips bring 33 to 35. S New white potatoes from Florida ire now on the market, and as con- sequence demand for old stock has | vased off to some extent, With sup- plies on hand ample for (x'?danwnnts At 1.1021.30 per hundred. No. 2 stock ot wanted and hardly salable at any price. Market for sweet potatoes and | yams continues steady to firm under Ay falr receipts of well graded st on which demand is centered at 4.50 to 5.50 a barrel for the former and 4.00 and 5.00 a barrel for the lat- ter. No, 2 stock sells mostly half price, while culls are not wanted at any price. Native and nearby gurden truck continues in ample receipt, and only fair demand prevails, with prices mostly in buyers favor at the fol- lowing quotations: Cabbage, 10.00 to 16.00 per ton; horseradish, 3.00 and 3.50 per bushel; kale, § to 10.5 & bar- rel; onions, 275 and 3.00 per 100 pounds; oyster plants, 4.00 to 6.00 hundred; parsnips, 30 and 35 basket; spinach, 40 to 60 bushel, and turnips, 30 to 85 basket. mostly 2 dition. ! HEADS SHIPPERS BODY. | NEW ORLEA March 28.—Frank Inman of Atlanta was elected presi- dent of the American Cotton Shipper Association and Atlanta was chosen for next vear's convention at the final business session of the organization’s first annual meeting here today. CANNING SEASON OPENS. SAN -FANCISCO, March 28 (Spe- cfal)—California’s canning season has started with the packing of spinach, of which a record output of 1,500,000 cases is predicted for the season. The crop is large and opening prices were slightly under Jast vear's. WASHINGTON, D. C.. MARCH 29, TURNOVER OF CAPITAL SECRET OF MORTGAGE FIRMS’ PROFITS Commissions on Loans Provide Major Source of In- come—South Carolina Fights Boll W eevil. Notes. anty Corporation here, which is one of the largest of these companies in Washington. Asked to explain the phrase “turnover,” he said: “There is no mystery nor disillusion, what- ever, in turnover. As an example, a real estate firm has need of, say, $75,000. We agree to furnish it. take a first trust on the property and exact a nominal commission. While this first trust we purchase bears the current rate of interest, it is not our intention to hold it. Instead, it is deposited with a trustee and collateral trust notes are issued against it These notes are immediately sold to the publlc, the incoming funds being available for a similar transaction. In this manner it is possible to turn money over any number of times, limited only by the demand for con- struction loans and first mortgage financing.” Reach High Totals. While this, in a nutshell. is & general fllustration of turnover of capital, all companies do mot function identically similar. The company used here to il- lustrate a point deals exclusively in first mortgages, and provides for payment of pledged trusts by monthly sinking funds and by guarantee by surety companies. First mortgages are playing a power- ful part in District financing. According to statement by W. P. Richards, District appraiser, there 1s more than $800,000,- 000 worth of privately owned real estate in the National Capital. It is estimated that today there is outstanding in first mortgages between $300,000,000 and $500,000,000 here. Teady for Weevil Fight. Gov. McLeod of South Carolina has signed the act of the Legislature to in- corporate the South Carolina Agricul- tural Loan Fund, consisting' of $3,000,- 000 to be raised by Bernard Baruch, financier of New York and formerly of South Carolina, and the banks of the State for relief of boll weevil stricken sections of the State. Introduced as a bill by Senator D. A. | Spivey, president of the South Carolina Bankers' Assoclation, the measure was passed by both houses of the Legislature and ratified recently. The act was signed by the governor and sent to the office of the secretary of state for preserva- tion as a matter of record. Section 3 of the act provides “that the funds arising from this capital or otherwise ehall be loaned to the banks of the State at not more than § per cent, sald banks Indorsing each application for loan and pledging good security therefor.” Current crop and chattel mortgages are classed as “good se- curity” under the act, as well as any additional escurity that the administra- tive board of the corporation deems acceptable. Bonds Legal for Banks. Federal farm loan and joint stock land bank bonds have been declared legal for investment of funds of banks, trust and insurance companies in Colo- rado by the Legislature of that State. FIVE UTILITY FIRMS IN $23,000,000 DEAL Confirmation of Pennsylvania and New Jersey Sales Is § Announced. - By the Associated Press. NEW YORK, March 28.—Confirm: tion of the purchase of fiva Pennsy: vania and New Jersey public utility companies by A. E. Fitkin & Co. was announced today. The companies in- volved are the Scranton Railway Co., Altoona & Logan Valley Rallroad Co. and Carbondale Gas Co. of Penn- sylvania and the Monmouth Lighting Co. and the Shore Lighting Co. of New Jersey, all former subsidiaries of the American Gas & Electric Co. The Jersey companies will be merged with the Jersey Central Power & Light Co., which sold $11,- 500,000 in bonds last week to help finance the transaction. The Penneyl- vanla companies will be taken into the Keystone Publlc Service Corpora- tion, both holding companies being Fitkin enterprises. The amount of financing done in connection with the purchases in- volves $23,000,000. ———— DECLINES TAKE PLACE IN FOREIGN EXCHANGE By the Associated Press. NEW YORK, March 28—The for- eign exchanges displhyed a firm tone in the early days of the week with the Norwegian and Danish currencles mounting to new high levels for the year. Some recessions took place in the last few days on the Increased ofterings of bills from European cap- itals, apparently inspired by reports that Great Britain's proposed return to the gold standapd might be de- layed. Heavy calling of brokers' loans, presumably in anticipation of the i | creased demand for funds in connec- tion with quarterly settlements, ac- counted for the higher call money rates. Time money and commercial paper rates were unchanged. = e WHEAT UNSETTLED. Corn Prices Turn Stronger in Sat- urday Trading. CHICAGO, March 28.—Rallies late in today's session failed to hold well, despite predictions that 2,500,000 acres of wheat would be abandoned in Kansas regardless of rains. The close was unsettled at the same as yester- day’s finish to 113 lower, May 1.57 to 1.57% and July 1.41 to 1.41%. sh demand here for corn was still slow, but Minneapolis reported 1,000,- 000 bushels brought there for ship- pers. The closs was strong, % to 1% net higher, May 1.10% to 1.10%. Ll BALTIMORE LIVE STOCK. BALTIMORE, Md., March 28 (Spe- clal).—With the exception of beef cattle, which are in very light re- ceipt on the wharves and only mod- erate at the stockyards, the little cattle market rules generally easy, demand being only fair, due to Lenten season. Top-grade cattle {8 the only kind that will bring full quotations and all under grades move slow at the lower values quoted. Heavy, rough cattle has to be sold at sharp | discounts. Quotations today at Light street wharf: Beef cattle—First quality Ib., 9 to 9%: medium, 5 to bulls, as to juality, ¥ to 5; cows, choice to faney, | ias to quali 4 to 6; milk i choice to fancy head. 50.00 to 0; | common to falr, 30.00 to 50.00; calves, veal, cholce, 1b.,, 12%; ordinary to medium, 10 to 11; rough and common, 7 to 9: small culls, 7 to 9. Sheep—Choice, 7 to 8; old bucks, {s to 7; common, 4 to 5; lambs, fall, choice, 16 to 17; fair to good, 13 to 15} common, thin, 10. g Hogs—Straight, 12 to 12% to 10; stags and boars, 5 to pigs, 14 to 16; shoats, 10 to 1. - —_— National, .State and local taxes in the United States increased 198 per cent from 1912 to 1922. . ows, 8 | | rates 1925—PART 1. THE SEVEN SLEEPERS A Thrilling Novel of Internationa! Intrigue (Continuved from Yesterday's Star.) I went up to him immediately and ked him if a small, Llack-halred man had just left the bullding with two companfons. No, monsleur,” he replied, “no one has left. No one at all” “But I'm sure of it I said. "“He left a moment ago. I saw him go out myself.” At this the chasseur brazenly changed his note. ‘or the good of the house,” he said, “I beg monsieur to say nothing. The man monsieur mentions has just been arrested. Monsteur will reallze we do not want any scandal. “Oh, very well,” 1 assented, it isn‘t any business of mine.” 1 was still holding in my hand the pocketbook whigh had so mysteri- osuly come into my possession, and I should then and there have handed it over to the chasseur if he had not already lled to me and glven me every reason to doubt his honesty. As it was, I called for my coat and returned to the Pension de la Reine, still in possession of the property of the little Jew. CHAPTER 111 I Receive an Invitation From My Grandmotker. On reaching my' room, 1 carefully examined the pocketbook. It contalned nothing but a sheet of stout note paper, one side of which was half covered with figures ar- ranged in groups. It was obviously some sort of cipher, but the document was signed by seven persons whose autographs were en clair. I did not, however, take the trouble to examine it any further that night, but soon turned in and slept soundly. 1 was tired, and the peculiar events at the Moulin Rouge had not sufficed to do more than ruffle the surface of my good spirits. Anyhow, I could do nothing about it till the morning, and during the war I had acquired the habit, which remains with me still, of putting off till tomorrow the things which cannot be done today. T .xe to think that this is & habit which I share with all the more attractive people of the earth. My dear mother calls it laziness, and Uncle James of Jebbutt & Jebbutt frequently prophe- sies that it will land me and mine in the office of the official receiver. 1 awoke rather late on the follow- ing morning, and 1 had not yet begun to think of the little Jew and his Pocketbook when my coffce arrived, with hot water and a letter. 1 opened the letter sleepily, without stopping to consider how cdd it was for me to recefve one when, as far as I was aware, no one knew my ad- dress. It was written In German, and was as follow: Pension Fphesus, “December 11th. “My Dearest Grandson: “I am glad to know that you have arrived at Jast in Geneva. I am sorry, dearest boy, that circum- stances, which you say in your tele- gram were inevitable, have caused you to be two days late. I trust, however, that you will lose no further time In coming to see me. “I am accordingly expecting you to take tea with me this afternoon at 4 o'clock precisely at No. 140 Rue Eti- enne Dumont. WUncle Ulric and Uncle Fritz will be there, and we must have a nice little chat together. We have quite a number of things to say to you. - am anxiously awaiting the little BOND MARKET DULL. Weak Stocks and Stiffening of Money Check Trading. NEW YORK, March 28.—Conflict- ing price movements marked today's bond trading, although changes gen- erally were trifiing. Weakness of the stock market and stiffening of money in connection with month end settlements dampened speculative sen- timent and prices fluctuated within a narrow trading area. Investment buying created a firm undertone for the railroad Mst, al- though trading interest was at a low ebb. Union Pacific, Reading, Balti- more & Ohlo and Southern Raflway Issues scored moderate improvement. New York Central 6s, however, con- tinued to ease off with the approach of the date on which conversion priv- lleges expire. Pan-American Petroleum 6s again turned reactionary in sympathy with a decline in the company’s shares. Other industrial liens showed mixed changes, gains of Wilson & Co., Pierce Arrow Motor, Kelly Springfleld Tire and Illinois Steel issues being offset by the heaviness of Magma Copper 75, Republic Steel 5%s and Skelly Oil 613s, French obligations continued to de- cline, although no particular reason for the selling appefred on the sur- face. Liberty bonds were irregular. COTTON PRICES TUMBLE. Net Declines From 39 to 41 Points on General List. NEW YORK, March 25—Continua- tion of the recent selling movement in the cotton market today sent prices into new low ground for the move- ment. May sold off to 24.54, a net decline of 39 points. The close was at the lowest with the tone barely steady, at net declines of 39 to 41 points on the general list. Recent cables reported a diminish- ing volume of liguidation in Liver- pool with the market there steadier on covering, Manchester and conti- nental buying. The amount of cotton on shipboard awaiting clearance at the end of the week was estimated at about 150,000 bales, compared with only 63,000 at the same time last year. CURB PRICES DECLINE. Many Issues Drop Just Before Saturday Market Closes. NEW YORK, March 25.—Trading volume and tome on the curb ex- change today pursued a similar course as that prevailing on the previous day, with most business restricted to @ narrow range. There were only a few movements of sufficient impor- tance to attract attention, the widest advance belng an overnight gain of 6 point in Cuban Tobacco. National Power became reactionary, selling off about 3 points. Other issues of that group were quiet with the trend lower, but generally confined to small fractions. Coty Incorporated recov- ered part of the decline made in Friday's initial dealings. With the exception of a 2-point drop in South Penn, the market in petroleum was unimpressive in con- o +| veying any indication of any intend- | 4 to §; common to fair, 2 to 3; oxen,| i3 ed action by those concerned in market operations In these issues. A sharp =elling movement in the last few minutes caused an acute, unsettled condition with most quota- tions falling to the session’s low fig- ures. Sl & TS FLOUR UNCHANGED. MINNEAPOLIS, Minn., March 2. Flour unchanged to 35 lower at 8.50a 8.95 a_barrel; shipments, 8775, bar rels. Wheat—No. 1 northern, 148%a 151%; May, 1.48%; July, 1.48%. Corn —No. 3 yellow, 1.03a1.0¢. Oats—No. :‘ ".n-u-, 30%as1. Flax—No. 1, 2782 me By FRANCIS BEEDING (Copyright, 1925, it ¥ Little, Brown & Co.) present which you tell me you are bringing me. As it is small, I hope you will take the greatest carc of it and that it will not be lost. “I should add, dear boy, a word of warming, which I hope vou will not misunderstand, since you know my great love and affection for you. You are of a high-spirited nature, and as the city of Geneva s at the moment en fete you may be tempted to in- dulge those high spirits of yours in the company of the other participants in the carnival. Now, the police here m. are lenlent, but they do not permit undue brawling or noise in the streets. I therefore beg you most carnestly to be careful not to let your excitable nature run away with you and thus bring you into unpleasant ;‘onlucl with the guardians of the a ‘Assuring you once more of my great affection, and of the warmth of the welcome which you may expect to receive, I am your loving “GRANDMOTHER."” To say that I was astonished by this letter is to put it miidly. T read it through twice, and my first conclusion was that T must be the victim of a practical j but a moment's reflection showed me that there could be no one in ( eva who would wish to play such a trick on me. Lavelle, my French friend on the secretariat of the league, was the last person from whom I should ex- pect anything of the kind, and Be; |trice Harvel had too excellent a sense {of humor to prepare an elaborate hoax. Besides, nelther of them yet knew that 1 was in Geneva My second thought was that the letter was directed to som> one else, a D 1 read it once more, carefully, and noted that my estimable grandmoth. whoever she might be, was evidently the gift. This seemed fairly clear, | but the reference to the police and to the fact that I was two days late was beyond me. and he had added that I should hear of it from Ephesus. Well, here was a letter addressed to me from the Pension Ephesus. Evidently, there was a connection be- tween this letter and the little Jew and the document he had thrust upon me in his panfe. t But how on earth had he found me out, and who in Heaven's name was | my grandmother—not to mention Uncle Ulric and Uncle Fritz. 1 had apparently spent the night in acquir- Ing a number of anxious relatives who were entirely strange to me. I took the document out of the|o pocketbook and examined it. Of the |c s: in a flash, I remembered where I had seen the latter. We had had some dealings with German firms after the war, and I recalled a small order from Germany for hardware of some kind—I forget what—which had passed through my hands. The various documents in connection with it had been signed “von Stahl” My uncle had told me at the time that he was perhaps the n s0_prom Here was a touch of mystery wits pleasantly it over while and decided to talk to Beatrice about set the thought on the an meet at du Lac at 1 o'clock As I was leaving proprietor that 1 met who hoped note which had been delivered for me that morning. left it had informed him extremely urgent. envelope pocket. hat, 5ho in the other would not have taken steps ¥ to retrieve it. that to work. 1 1 was shaving a notion which gave to the prob Y volcy the I took T asked he #You ar uerfed “One can never be sure roprietor. he erelt ecretary, lem an added attra I dressed as rapidly as rang her up at t was pleasant to hear the cry tonishment with which she recognized ion. ossible and 1t = he secretariat. of and still more pleasant to the th t and saw first thought was an ordinary did not bear a stamp. 1 inquired at and t ith Th. th who had brought the pension, and was told that it had been delivered come early that morning before I was awake, about §:30. structions taken to me the moment I w th what t senger had looked like tor sald that he ticular notice of her, but t |been slight in appears remember no detail of what she wor except that, as she I front of a mir had remurked trimmed with a pheasant's feather sure hi “Not Jd say.” was not, by any « enough to be my grandmothe ond and prepared to fore meeting Bea nd to think at leisure o very anxious to receive the small|ways and means o present .of which she spoke. The | ter words of warning about not losing it,| The rain of the which one would not exvect to find | ceased, though hei in an ordinary letter, were evidently [ hanging over the meant to emphasize the importance of | trouble vou with in the directi and din des Suddenly a ery t a ut dan. of car shoulder, and h subalterns, him eince the d carried off, a man, gun, He had parti unie, t a blood-s from which on_“the glorious I was shocked at appearanc the 15t nd what might you be doing he countered. a sayir reflect that she recognized it at all— telephone, interval too—after so long answered about 35 questions in as many seconds (or so it seemed), come to lunch was disengaged, and we arranged to griliroom asked her to Luckily, she hen me. of the Hots the telephone I of the pension had received the e person who had that it was out of w at what I had at letter it to a lady, who had She had given in note be he unknown mes- The proprie- ken pa at she h He could ad not t sed instar or to arrange he that it wa. e was young?' replied 1 more tha 25 nee, ol but, on turning the envelope, I saw |suggested. it was correctly addresscd 10 “Herr| “Certainly not,” said the proprieto Thomas Preston.” 1 thanked him for his informati 0 for a stroll be ce, to sce the to r poseit my m, ¢ solving ious day N clouds were st v. 1 need n stion of 1 t 1 of the u found myse arvel ! astions, m “Two days later” Where had T|at an dibly ugly monument. Ca heard that phrase before? Then Ilvin, Luther, Knox and Farel, tw remembered that the little Je'v had |the size of , looked out from t opened upon me with precisely those |wall with a fixed uncomprehendin: words on the previoas evening. |stare, flanked by er fizures ar You're two days late” hie had said, |scenes in low relief. Among t noticed the regicide Cromwell and } John M and ton. clapped me on ti s around, I found he best of my bat nd I had not see he had beer d wréck o ns of 2 fiv , 1916 ange in his something about t exces: nd cipher I could make nothing, but the |proud of his fleld bo. which ha signatures were more illuminating.|been made by the most expens Five of the names were unknown to | bootmaker fn Londc Now I saw me, but the sixth and seventh I |before me a medium sized man, thi seemed to identify. “Von Buhlen”|in the face, his forehead puckered I knew I had come across, though I|with hard lines. He was slovenly could not remember where, and “von |dressed, although the clothes ha wore Stahl” was even more familiar. Then, | were well cut, and he leaned heavil on a rubber-shod stic “Good Lord, Jerry!" I “What on earth brings you to exclaimed We walked across the gardens to cafe where Jerry from Munich, and as he limped slowl by my side he told me of his life s our last meeting. richest man in Germany, but that he|changed in sp! was very little known and kept him-|ye had been the '3 self entirely out of politics. A dan-[jienerul of compa gerous man, my uncle had said, be-|word was bitter cause he was so quiet and appeared to do nothing, eithough he was re- puted to be very influential. Now that I had placed von Stahl, T remembered at once that von Buhlen was the head of the big armaments firm which had constructed most of Germany's guns and munitions, and it was fairly certain that the enor- mous profits which the war had brought to the firm had been invested abroad and had not suffered from the collapse of the mark. Von Buh- len must still be fabulously rich. This, then, appeared to be a docu- ment of some importance, and I soon came to the conclusion that the little present to which my grandmother re- ferred with such solicitude was none other than the sheet of paper which had been so queerly thrust upon me at the Moulin Rouge. I had not idea what It meant, but clearly it was of value, Otherwise the little Jew would not have been so eager to get rid of it before his arrest, and my ‘“grand- h o a R! Fletcher’s nd a us jobs, om. He old Jerry, vear at Oxford). sald the bheer I found hin in appearan avest and most de nions. Now every and disconsofate Nor was this to be wondered at After spending months in hospita had eventually with a pension of a hundred a year permaner been discharged game leg (poor the fnest athlete of his but to n who was was in J Castoria is a pleasant, harmless sub- stitute for Castor Oil, Paregoric, Teething Drops and Soothing He had tried vari- never for very long Having a little money of his own, he contrived the moment he w to two boy war profitee they should made su said Jer Justify the cr cer as a kind of superior s had taken the job out of general bo: ge somehow. s acting as_tut of a rich Fren anxfous that glish, and 1 of the wur ge sneer, ment of an ex-oft vant. 1j. Geneva with ) youthful charges, he explained, for fortnight or three weeks, befors tal ing them up to the mountains for t! Winter sports. " (Continued in Tomorrow's Star.) 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