Evening Star Newspaper, May 10, 1925, Page 88

FINANCIAL. FLOUR PRICES NEAR |WHEAT () | APSES NEw HIGH I-EVELS “WARTIME” FIGURES AFTER U. 5. REPORT INCURB MARKET ——1m—— High. Low. U. 8. BONDS. High. 101-29 100-28 Liberty 3%4s 1932-47..... 101 2 102-8 101-14 Liberty 1st 41(s 1933-47.. 1025 101-14 100-20 Liberty 3d 4i(s 1927 101-12 101-30 101-1 Liberty 3d 43s 1928. 102-3 102-10 101-20 Liberty dth 41¢ 1933-38.. 102-12 1027 10’5-17 104-13 Treasury $%s 1947-53... 105-23 106-17 e ” Low. Last. Yield. 100-28 100-30 8 87 102-1 102¢3 394 101-10 379 101-26 376 FINANCIAL., |I []UR Bl[} FA[;WRS BOND SUMMARY FOR THE WEEK |MOTOR AND TIRE SHARES REACH : o NEW HIGH MARKS FOR YEAR [ !N MARKEI MUVES onEa Earnings Reports Bring Boost for Automobile Issues, ‘Wholesale Costs of Some Brands 10708 Have Almost Doubled in Utilities, Foreign Liens, | Junior Rail and Mortgage | Issues Gain During Week. By GEORGE T. HUGHE! Epcoial Dispatch to The Star. NEW YORK, May 9—The four Ehief points of interest this week in ti- investment situation have been: First, the extraordinary advance in public utility securities; second, the in- sed favor shown toward foreign third, peculative buying of hizh yielding junior railroad bonds, and fourth, the strength of the in- vestment demand for high grade rail- = mortgages and tax-exempt mu- picipals. Utilities Spectacular. Of these four the most spectacular Bevelopment was the advance in the utilities, but this was principally con- fined to stocks evidently accumulated in the expectation of price apprecia- tion rather than strictly for invest- ment. Common stocks of some of these utilities, chiefly electric light and power and gas companies, have been pushed up to new records for the last two or three years. The theory on which this buying has been founded 1 ¢ bone at public relations are favorabl Moreover, the commodity price level is all to the advantage of the utilities, but a_speculative movement like this one almost invaribly runs to extremes and it is a matter of opinion whether this point has been reached now or not. Bonds Also Advance. Along with this improvement in the market for utility stocks has gone investment demand for high-grade utility bonds. It is no longer an easy matter to get better than 5 per cent in first mortgage bonds of an estab- lished electric light and power com- - pany. Junior liens are obtainable to give considerably more than 5 per cent, but there is a scarcity of the underlying securities, wh becomes evident any time an attempt is made to acquire any large block. The one grade of public curity which 1 preferred stock. The explanation is that preferred issues are not con- servative enough for the average bond buyver and lack the possibilities of speculative advance that the common stocks give. The result is that any- where from 6 to 7 per cent can still be had on these preferred issues, making them one of the best available investment opportunities for the man who wants reasonable security and a liberal return. It would seem that this - condition could not continue indefi- pitely. Foreign Liens Improve. The better feeling towards foreign bonds has not yet been reflected in any very considerable price advances. Probably what has been happening is that in the search for higher returns foreign dollar bonds have been se lected in the belief that yield s out of all proportion to the risk involved. One of the features of the tradi this group this week .was the large blocks of Japanese honds which were taken at record high prices. If the market is any guide concern over political complications is at end. Significantly enough, the statement of Ambassador Houghton on the American_attitude toward European reconstruction has no unfavorable effect upon outstanding European Joans. On the other hand, there has been little of that buying for British eccount, which was anticipated when sterling exchange first returned to ap- proximate parity. Foreign bonds, which are dealt in both in London and New York markets, sell higher * in London, so there is every induce- ment, with sterling at par, for the British investor to buy the dollar rather than the sterling bond. Easy Money Big Factor. The higher prices for speculative railroad bonds have not been uniform, but have come mostly in securities representing systems operating in the South and Southwest, where railroad conditions are better. comparatively, than in other parts of the country. For the strength in the strictly high-grade investment bonds the ease in ‘money is still sufficient explana- tion. Prices in this group have gone gnuch higher than bankers generally ad expected, but the demand ap- ears just as strong at the new level s it did lower down. One day this veek a block of over $6,000,000 of an old line listed high-grade raflroad mortgage bonds was unexpectedly of- fered and taken without making any eppreciable effect on the market, banks being the principal buyers and the bulk of the dealings being over the counter. Another illustration of this invest- ment demand was the sale of $60, 000,000 New York City bonds at the highest prices in 16 vears. Here, of course, the buyers were investors, to whom tax exemption was an es- sential. utility (Copsight, 1925.) MERGER OF 25 COAL FIRMS UNDER WAY Properties in Ohio Are Now Valued at $40,000,000—Much Land Involved. By the Assoclated Press. UNIONTOWN, Pa., May 9.—Nego- tiations are under way for the mer- Eer of 25 coal properties in eastern Ohlo, with a valuation of $40,000,000, it became known today with the ap. pointment of a committee of seven men to represent Fayette County cer- tificate holders of the Gladdis Coal Co. 4n the negotiations. The proposed msolidation would involve 100,000 , inkerests represented by 15,000 acres. i { i ORK, May 9.—An initial uarterly has been dleclared on the 6 per cent prreferred atlock of the Associated Gas znd Electrid\ Co.. payable June 1 to sitock of recoffd May 11. Share hold- ers have beep given the option of taking paymegit efther in cash or in tlass A stock &t the rate of 3-50ths of & share for edch share of preferred, which is equal)te about $1.70 a share on_the basis @t the present market value of the A \stocks. ividend of $1.50 a share |. 10— Hieh. Low. 96 89 108% 100% 85% 96% 97 1% 81 5 101% Argentina 7s 1 Low Y e, High. % 96% 1024 7% - FOREIGN. 95 ~ Argentina 63 A 1:(7 93 Austriasf 7s 1943 83% Belgium 6s 1955. 106% Belgium THs 19 106% Belgium 80 Bordeaux Drasil 8s 194, Canada b8 19 French Govt 83 1945 Queensland 78 1941. Rio de Janeiro 8s 1946. 4 Sao Paulo, State of, 88 1936 4 Seine, Dept of, 78 Serbs Crotes Slovenes 88 1963, Sweden 65 1939. . Swiss Bles 1946, 115% United Kingdom 5348 193 104% United Kingdom 5% 8 1937.. .. INDUSTRIAL AND MISCELLANEOUS. 94% Amer Agri Chemical 7348 1941 95% Amer Smelt & Ref 1st 108% Am. Smelt 1st 6s 194 991 Amer Sugar Refining 964 Amer Tel & Tel cl tr 100 Amer Tel & Tel cl tr 99% Anaconda Copper 6s 1 99% Anaconda Copper cv 85 Armour & Co ¢%s 19 97% Atlantic Refining deb 100% Bell Tel (Pa) ref 5s 1948 90 Bethlehem Steel p m b 93% Bethlehem Steel s £ 105 Chile Copper 65 1933 81 Cona Coal (Md) 1s ref 5s 1950 99% Cuba Cane Sug cv Aeb 85 1930 106% Detroit Edison ret ¢s 1940. . 106% Du Pont de Nem 7%s 1931 973 93" Goodrich (B F) 638 1947 % Goodyear Tire 8s 1931 Goodyear Tire 8s 1941 Humble Oil & Ref 6%s Indiana Steel 63 1952. Inter Mer Marine Inter Paper s B 1947. Stnclair O1l 78 1937 Skelly 6ls 1927 South Porto Rico St Union Bag & Paper United Drug 6s 1944. U S Rubber 1st & ret k; U S Rubber 73481930, U SSteel s 551963, Utah Power & Light 4 Western Union Tel 633 1936. % Wilson & Co 1st 68 1941. Wilson & Co cv 73%s 1931, LROAD, B & O Southwn div 3%s 192 Brooklyn-Manhat s f 62 A 1 Canadian Northern 633 194, Canadian Pacific deb 48 Central Pacific 45 1949. ... Chesapeake & Ohio cv 4%s 4 Chesapeake & Ohio gn 4%s 1 Chesapeake & Ohio cv 58 1946. Chicago & Alton 3%s 1950. i Chi B & Quincy 1st ref 5i Chi & Eastern Il gen 4 Chi Great Western 4s 1989. .. ChiM & St Paul cv 4351932, Chi M & St Paul gen 4%s 1989 % Chi M & St Paul ref 4%s 2014 Chi M & St Paul cv 65 2014. Chi & Northwestern 6%s 193 Chicago Rallways 58 1927... Chi R I & Pacific ref 45 1934 Chi Union Statlon 41%s 1964. Chi Union Station 6%s 1963 Chi & Western IAd con 48 1953. CCC&StLref 65 A 1929. Cleveland Term b%s 1972 90% Colorado & Southe CubaR R 55 1952, Den & Rio Grande con D. Brie 1st con 45 1996, Erie gen lien 4s 199 Erie cv 4s A 1953 Erie cv 4s D 1953. . Great Northern gen § Great Northern gen 7s 1936, Hudson & Manhattan ref 5s 1987, Hudson & Manhattan adj 5s 1957 Illinois Central 6%s 1934... Inter Rapid Transit bs 1966 Inter Rapid Transit cv 7s 1932. Inter & Great Nor adj 6s 1952 Kan C Ft Scott & M 4s 193 Kansas City Southern 3s 1950 Kansas City Southern 5s 1950, Lake Shore 45 1928 Missouri Pacific gen 4s 1 Missouri Pacific 6s 1949. N O Tex & M Pennsylvania gen 48 1014 ; nnsylvania ‘;‘n &8 196 09% St L &SanFranprinds A 85% St L & San Franprin sl 106% Southern Ry dev 6% s 196 34% Third Ave adj bs- 90% Union Pacific 1st 4 98% Union Pacific ev 48 1 b W hile Trading in Other Stocks Is Irregular in - Brief Saturday Session. By the Assdciated Press. NEW YORK, May 9.—Strength of 98% |the motor and tire stocks, several of ‘which attained new peak prices for the year, was the distinguishing feature of today's brief session of the stock market. The general list dis- closed considerable irregularity as a result of the usual week end read- Justment of speculative accounts. Further accumulation of the auto- motive issues was based on reports of high current earnings, due to the unusually heavy Spring demand for % |cars and the relatively low produc- #ltion costs as a result of the recent % | Willys-O softening of basic commodity pric rland _common and pre- ack Trucks, Continental Plerce Arrow and Packal ferred. Motors, % preferred all sold at new high prices for the year. Tire Price Talk Helps. Predictions of higher tire prices as & result of the recent increase in the price of crude rubber brought fresh buying into the rubber group, United States Rubber, common and pre- ferred, and Kelly Springfleld all mounting to new high ground. The April tonnage report of the United States Steel Corporation showing a decrease of 416,996 tons in unfilled orders, which was issued at the close of the market, was slightly larger than Wall Street had antici- pated. Trading in the steel shares was rather quiet pending the publi- cation of this statement. U. 8. Steel common closing fractionally lower at|192 115, Transcontinental Oil Up. Heavy buying of Transcontinental 8% 011, which touched a new high level 107% 107% 116% 117 100% 101 108% 108% 90% Bl T4% 5% 102% 102% 664 66 88 for the year, was the only feature in the petroleum group. American Sumatra Tobacco preferred, which recorded a sensational advance on urgent short covering yesterday,opened 3% points lower, but soon made up its loss and advanced a point above last night's close. Realizing sales brought about mod- erate recessions in some of the public utilities. American and Foreign Power, Columbla Gas and Electric and Montana Power dropping & point or so, while Utah Securities fell back more than 4 points to 118%. Southern Rallway Reacts. Reactionary tendencies in the rail group were particularly pronounced in Southern Railway, which closed more than 2 points lower at 911 on selling inspired by President Harri- gon's remark that an increase in the common dividend has not been con- sidered, and by Union Pacific, Wheel- ing and Lake Erie preferred, Lehigh Valley and New York, Ontarfo and ‘Western, all of which closed a point or_two lower. Foreign exchange rates held rela- tively firm, with trading of the usual week end character. Demand ster- ling ruled unchanged around $4.84% and French francs around 6.20% cents. The Canadian dollar still was quoted at a slight premium, WALL STREET BRIEFS. NEW YORK, May 9.—Lewis G. Kaufmann, president of the Chatham and Phenix National Bank and Trust Co., and director of Genefal Motors Corporation, salled today for Europe in a very optimistic mood over th industrial and financial outlook. He and,he saw nothing in view that might retard the progress of the country. “The motor business in the United States has only begun,” he added. “I look for General Motors to have the best year it ever had from a sales and earnings standpoint, and I think the next report will bear me out.” The Chicago, Milweukee & St. Paul has placed orders for 5,600 freight cars, which will require about 75,000 to! of steel, involving expenditure of most $12,000,000. Orders for 1,000 ad- ditional cars will be placed next week. Distribution was made among Pressed Steel Car, Pullman Car and Manufac- ra | turing, American Tank Car, American Car and Foundry, Illinois Car and Manufacturing and Standard Steel Car. All deliveries are to be made October 1. American Power and Light has de- clared a stock dividend of one-fiftieth of a share on the common stock and the fegular quarterly disbursement of 25c, payable June 1 to stockholders of record May 15. The volume of new bullding con- tracts awarded in April in 36 states, about seven-eights of thé country’s construction as compiled by the F. W. Dodge Corporation, amounted to $546,- 970,700, the largest monthly total on record. This was an increase of 14 per cent over March and 13 per cent over April, Total construction started in the first four months of 1925 was valued at $1,623,640,000 against $1,615,043,- 200 in the same period last year. The New York Cotton Exchange will close for 20 minutes at 11:55 a.m. on Tuesday, June 2, or such date as the Department of Agriculture may des- ignate for issuing its first corp con- dition report. The Philadelphia Electric Company will redeem its preferred stock at $28 a share on September 15. Bank clearings for the week, com- piled from figures received from lead- ing cities of the country by the Com- mercial and Financlal Chronicle, show a gain of 26.9 per cent over the same week last year, the total having reached $10,080,661,801, compared with $8,006,180,009. An increase of 37.2 per cent was shown by New York City. COTTON EASES OFF. Beneficial Rains Weaken Futures Market. NEW YORK. May 9.—Prospects for further beneficial rains or showers in the South over Sunday led to in- creased offerings on a moderate early |3 advance in the cotton market today. After selling up to 23.17, July eased off to 23.02, and closed at 23.04, the general market closing barely steady at net declines of 3 to 10 points. Fall River sales of cloths for the week were estimated at 30,000 pleces and production there was reported to be hardly 50 per cent of normal. ‘The amount of cotton on shiphard awaiting clearance was esfimated at 90,826 bales, against 83,943 last "year. Financial Highlights of Past Week Brought Out in Nutshell by Statistics Special Dispatch to The Star. NEW YORK, May 9.— Stocks (average of 50 issues) .... Bonds (average of 40 issues) . Foreign bonds (average of 10 Federal reserve ratio Money rates in New York: Unfilled steel orders Pig iron production Building permits: Number of citfes ... Amount ...... Commerelal fallures: All commodities .. Grain and grain pi Coal and coke . Forest products . Miscellaneous products “esseceisiiiiiea.. 763 ar., 4,863,564 . 356 « $398,534,306 1,895 .« $34,004,731 ‘Week Apr. 26, 25. Prévious week. Year ago. Last week. Low. High. A . Low. 107.98 160.27 105.24 This week. Last week. . 8413 83:55 10161 This week. Last week. Year ago. 77.3 824 This week. Last week. 3% to4 3% to 4 Month of Feb., 1925 5,2 7 ,284,777 114,791 High. 109.21 925 114,975 365 356 $282,228,926 $462,689,117 1,793 1,897 $40,123,017 $54,354,032 959,225 34,028 157,937 77,434 361,107 42,494 31,138 922,778 878,387 The Year 1925 to Date on the Washington Stock Exchange. - Furnished by W. B. Hibbs & Co. Up to and including Saturday, May 9. BONDS. $17,000—C. & P. Telephone 1st 5 20,000—C. & P. Tel. of Va. bs..... 89,000—Capital Traction 1st Bs. 31,000—City & Suburban Ry. 1st b 18,000—Georgetown Gas Lt. 1st 25,000—Pot. Elec. Power 1st s 55,000—Pot. Elec. Power Cons. 5s. 17,800—Pot. Elec. Power Gen. & Ref 20,700—Pot. Elec. Power Ref. 78 6,000—Wash., Balto. & Anna. 1st €8,000—Wash. Gas Light Gen. 6s. 95,600~Wash. Gas Light és Sale: % 214,600—Wash. Ry. & Elec, Cons. 4s. lCa 230,600—Wash. Ry. & Elec. Gen. & Ref. High. | Low. 1003 7% e 6,000—~Dist. of Col. Paper Mfg. 1st 6s.. 4,700—Riggs Realty (long) Bs. 2,500—Southern Bldg. Co. 500—yWardman Park Hotel 6s. BTOCKS. 4,786—Capital Traction 2,763—Washington Gas 1,963—Wash. Ry. 3,252—Wash. Ry. Elec. P1d. 167—Commercial & 13—National Savings & 42—Union Trust .. . 60—Washington Loan & Trust. 407—Firemen’s Insurance.. 451—Columbia Title Insurance. 16—Real Title Insurance. 20~~D. C. Paper Mfg. Ptd. 3,727—Lanston Monotype 887—Mergenthaler Li: 16,167—Ni¢ 62—N. & W. SBteamboat 2—Security Storage 30—Washington Market, notype ..... tional Mtg. & Inv. Prd... Saturday Trading Adds to| Sharp Advances Made Earlier in Week. the Associated Pross. NEW YORK, May 9.—Bullish ac- tivities on the curb exchange today continued to center around that class of securities which had recently as- sumed foremost position in the deal- ings in that market. Renewed buy- ing on a broad scale lifted several public utility stocks to new high rec- ords. Adirondack Power opened up 3 points from the previous close and a similar movement took place in Power Corporation of New York, which scored a net gain of about § points. Buffalo General Electric also moved to a new high, selling to 62. Profit-taking later caused a sharp re- action fn some parts, notably Amer- ican Light and Traction. Record Week on Curb. Petroleum shares were irregular as @ resylt of moderate recessions ap- pearing in a Iargghnumber of issues. Imperial Oil and gnolia Petroleum developed strength. Price movements in many of the public utility issues were so violent and wide as to make the week pi all previous records in the range of fluctuations for active stocks. The widest movement was in Caro- lina Power, which ranged from 355 to 425. National Power advanced from 284 to 302, Commonwealth from 1167% to 12915, Lehigh Power Secur- ities from 108% to 121%, American Light and Traction from 153% to 174% and Buffalo General Electric from 511 to 62. Chrysler at New High. Strength also was shown in a num- ber of individual {ssues. Chief among them was Chrysler new stock, which moved up from 841 to the new high record of 91. Freed Eisemann was strong_in the radio group, advancing from 7% to 10%; and Dublilier rose from 133 to 15. A number of spe- cialties, including Mengel Box and the Baking stocks, were activé and strong at _intervals. The petroleum group, in spite of the reduction in gasoline announced by! leading companies, displayed strength. Magnolla ranged from 135% to 141 and Humble from 48% to 50%. Many of the miscellaneous ofl stocks were strong. o NEW YORK DAIRY PRICES. NEW YORK, May 9.—Butter, firm; receipts, 5,352 packages. Creamery, higher than extras, 43%4a44; do., extras (92 -score), 43; do., firsts (88 to 91 score), 41%a42%. Eggs, firm; re- ceipts,” 21606 cases. Fresh gathered, extra firsts, 32a32%; do., storage packed, 33a33% ; fresh-gathered firsts, 30%a31%; do. storage packed, 81% a32%; fresh-gathered-seconds, 28%a 03%. FLOUR GOES HIGHER. MINNEAPOLIS, May 9.—Flour, 25 t0 30 cents righer, at 9.15a9.20 a bar- rel: shipments, 29,063 barrels. Bran, 26.00a27.00. Wheat, No. 1 Northern, 54%al.37%: May, 1.52%: July. 5 September, 1.40%. Corn. No. w, 1.0815a1.09% hite, 41%a42. Flax, 2.81%. . 207%a Oats, No. 3, Past Year. Special Dispatch to The Star. BALTIMORE, May 9.—With an increase yesterday of 10 cents a barrel on Western grades of Winter straight flour, the second advance this week, wholesale prices of “flour here are rapldly approaching “war- time” figures. A comparison of prices today with the corresponding period of last year ows that the cost has almost doubled on some brands of flour. The following table gives the cost of flour per barrel in carload lots at the local flour exchange today and prevailing prices a year agoc Winter patent ; Winter straight 5 50 00 25 76 ... 7.00a8.00 e —y ROAD TO COST $12,570,000. ATLANTA, May 9 (Special).—The concrete highway from Atlanta to Savannah will be pushed to comple- tion as soon as possible. The road will be 18 feet wide and 344 miles long. It will traverse 20 counties and will cost $12,570,000. Half of this will come from Federal sources and the remainder from county bonds. Prob'ahility of Larger Crop Than Expected Starts Crash in Market. By the Associated Prese. CHICAGO, May 9.—A collapse of more than 6 cents a bushel in wheat values resulted today from the United States Government crop report show- ing likelihood of a yield of Winter wheat this season 15,000,000 or 20,000 000 bushels in excess of that generally looked for. Closing prices were practically the lowest of the day, with the market as & whole heavy, 5% to 7 a bushel down as compared with yesterday's finish Last transactions were 1.62 to 1.62% for May and 1.50% to 1.50% for July No important reaction took place in the corn market. Corn closed weak. 1% to 2% net lower, July 1.14% to 1.14%. > Break in Winnipeg. WINNIPEG, Manitoba, May Drastic declines were recorded on the wheat market today, with May deliv ery dropping 9% to 1.701. Trading was extremel market closed at May 1.7 1.69% and Oc tober 1.33%. Metropolitan Housing Loans (ietropolitan Life Insurance Company) On homes in the District of Columbia and suburbs in Mary. land and Virginia. These loans may be made for 15 years and are very ad- vantageous to the borrower for ths reason that they elimi- nate extensions, or new loans at the end of short periods. No life insurance requirement. Write for booklet. Unlimited funds for loans in the District of Columbia on BUSINESS PROPERTIES APARTMENT HOUSES OFFICE BUILDINGS AND HOTELS Lowest Interest Rates—Brokers' A pplications Invited WEAVER BROS. REALTORS 735 15th St. N.W. Phone Main 1821 BUCK and CO. Stocks and Bonds Direct Private Wires to New Yo and Baltimore. We buy and sell listed secur HOG VALUES ADVANCE. CHICAGO, May 9.—Another boost nf",{s-m 20 cents in hog values today mefit “thAt market to the high point for*a week and more than $1 higher than a Week ago. “Money to Loan Secured by first deed of trust on real estate Prevailing interest and commission Joseph 1. Weller $307u % 8 75t WE FINANCE —ail classes of tncome-produciug property. Large Loans a Specialty Highiu® Richardson, nc. ["E—]u] WANTED Second Trust Notes ‘This company has funds available for the purchase of all kinds' of second trust notes, secured on real estate in or close to Prompt Service 2 Washington Investmentr and Transactions Co. Ine. 713-15 14th St. N.W. Main 3862 1. Strong first mortgage security. 2. Protected by time tested safeguards. 3. Liberalinterestreturn7%. 4. Denominations: $100, $500, $1,000. 5. Maturities: 2 to 15 years. 6. Convenient Investment 7. No loss te any lavestor in 52 years. i Mait the coupon Yor our Beoklet margin. Ph ies outright and on -Write or call for our weekly market lett - +This week’s letter gives a stock selling around 3 and 6, which we believe should enhance in value. 312-13 Evans Bldg. 1420 N. Y. Ave. N.W. floor,” etc. and invest your money 713 14th St. N.W. Are You Ever Tempted? We know the pressure is sometimes very great to buy questionable stocks, to get in ’ But turn a deaf ear to all secureties of all time, namely : FIRST MORTGAGES ON IMPROVED REAL ESTATE IN THE NATION’S CAPITAL We have such notes for sale in denomi- nations to suit every pocketbook, and they yield 6% %—payable semi-annually. Phone or write our Mortgage Department to explain details REALTORS Fr. 7300 L M. 8673 | “on the ground P such entreaties in the most substantial Main 2345 Thirty-two years’ experience coming in contact with all phases of this the MANAGEMEN T OF APARTMENT HOUSES —enables us to render owners an efficient service. P«mdnrvicelhd given ¢o the business of our clients and our tenants. B. F. SAUL CO. Main 2100 Property Management PROFESSION that requires years of ex- perience, a knowledge of ‘people and places and an exercise of tact. business specializing in individual attention is 925 15th St. NW.