Evening Star Newspaper, June 30, 1926, Page 29

NEARBY TOMATOES IN CENTER MARKET Fruit Supplies Liberal. Smaller Potato Demand Noted Today. Homegrown tomatos ed in market. They are not coming in_quantities large enough to estal lish a market, however, most being made direct to consumer: growers.. Supplies of tomatoes from M sippi and th Carolina ave liberal. The market has been considerably weakened and prices have dropped. Many of the tomatoes received t'se past two days were almost too ripe to handle, 1t stated, and rogail prices dropped ow as taree pounds for a quart Mississippt ripes and tur as low as 85 and D cer Carolina fancy counts, twrning, were quoted at A slightly weaker pot was reported this mornir and North Cu graded, went choicest stock Prices of most fooc ing were . an and market Virginia well morn. the same as et Prices Today. ancy, 1-pound prints, 46a 546 resh, ¥ selected, 31 33a34; cur o0t receipts, . ‘urkeys 40a45; @lymouth ers, 11; to 2 pamnds, 45 40: White Leglorn roosters, fuck keats, young, 229, pring ‘k broil- old, 8: broilers 6: ligh medium, ul0; and medfum, lambs, 3. Meatsy-Beef, 17a18: lamb. dressed pork., heavy 35a36: Western, 30a32 ~houlders, 24a25; fresh hams, 34, fresh shoulder . Fruit and Vegetable Review. Yoday’s mgrket report on fruits vegetables, reviewed by the Depart- mient of Agricult : Cantaloupes — Supplies mand limited, market slightl; California, Imperial Valley. tints, standards, 43s, 4.00a4.50 4.00. Lettuce—supplies mode! limited, market dull; Washingto: crates, Iceberg 'Bre, 4-5 dozen, . New Yo szen crates, Bi Boston type, T Onions — Supplies light; light, market steady: Texa: crates, Yellow Bermudas, U mostly 2.00; ordinary condition, 1.25a ). eaches: thin, 1313; ; veal, ; pork hams, 32a liberal; weake salmon mostly e: demand demand supplies moderate; demand moderate, market steady olina, 6s, Red Birds, large sizes, mostly around 3.00; Early Rose, very large sizes, fine quali and condition, 3 8.00a3.25; Virginia, 6s, A very small sizes, 2.50; Georgia, bushel kets, Early Rose, medium sizes, ; very small sizes, 2.00a2.25. Potatoes—Supplies moderate; de- mand limited, market slightly weake! North and South Carolina and Norfolk section, Virginia, cloth-top stave bar- rels Cobblers, U. S. No. 1, 5.00a5.50; partly graded, 4.0024.50. Tomato Market Unsettled. Tomatoes—Supplies liberal; demand moderate, market unsettled and slight- 1v weaker; Mississippis, fours, ripes, wrapped, 60a75, few 99; fours, ripes and turning, wrapped, 85a1.00; South Carolina, sixes, green and turning, wrapped, fancy count. 1.50a2.00. Watermelons—Supplies liberal; mand moderate, market slightly weak- er; Florida Tom Watsons, 26 average, mostly round, 60; 30-32-pound average, mostly 75. Cabbage—Supplies liberal; demand MNght, market steady; homegrown, bar- rels, flat_top, 1.00a1.25: few, 1.50. Corn—Supplies moderate; demand light, market fairly steady; Texas, bushel baskets, 2.25a2.50;: North Caro- lina crates very poor to ordinary qual- ity and condition, 50a1.50: few higher. String Reans—Supplies liberal; de- mand moderate, market slightly weak- homegrowns. barrels, Valentir a3.00; stringless green pod, 3. 4.00. umbers—Supplies moderate: de. mand light, market steady; Virgi Norfolk _section, hot-bed bushel hampers, RETAIL TRADE GAINS. Exceeds All Records for First Five Months of the Year. Retail trade for the first five months of 1926 exceeded all records for this period in any preceding year, it was estimated today by the Federal Re- serve Board. Increases were reported in all Federal Reserve Districts ex- cept Minneapolis, the largest, amount- ing to more than 10 per cent, being in the Philadelphiu, Atlanta, Chicago and St. Louis districts. HUGE STEEL ORDER. Pennsylvania R. R. Taking Bids as of Fourth of July. NEW YORK, June 30 (#).—The Pennsylvania railrond will take bids in July on 40,000 tons of assorted scrap. IRON AND STEEL PRICES. NEW YORK, June 30 P).— Youngstown dispatches to Wall Street gay iron and steel prices are becom- ing firmer, in anticipation of advances this Fall.” Producers look for fairly well sustained business through the 3 tions on semi-finished arter delivery are steady at existing sheet bars commanding $36 o ton. Extreme low prices in sheets are disappearing. DIVi;Efi'DS RESUMED. NEW YORK, June 30 (#).—Direc- tors of Fisk Rubber Co. today sumed dividends on the second pre- ferred stock at the quarterly rate of .75 a_share, payable September 1, of record August 15. The regular quarterly dividends $1 a share on the first preferred and _first preferred convertible stocks also were authorized. No dividends have been paid on second preferred since June, 1921 WILL CLOSE SATURDAY. NEW YORK, June 30 (#).—The board of managers of the New York Cotton Exchange today voted to fol- low the head of the Stock Exchange and the Curb Market in declaring Saturday, July 3, a holiday, thus mak ing a three-day suspension of busi- ness. Other principal commodity ex- changes also will be idle. —_—— BUTTER IS LOWER. CHICAGO, June 30 (#).—Butter, lower; receipts, 9,770 tubs; creamery, extras, .381;; standards, 38%; extra firsts, 87%,a37%; firsts, 35a36; seconds, 33a34%3. product the s have appeor- ing «went | South COAL EXPORTS GAIN. Baltimore Shipments Already Ahead of Entire Year 1925. Special Dispatch to The Star. ! BALTIMORE, June 30.—Coal | ports from Baltimore for June nearly double those of May, and total shipments thus far in 1926 are nearly 100,000 tons ahead of the en- tire year '1925. With the present month not yet complete, already 146, 187 tons of bituminous has been ex- ported on 24 vessels, as compared with 87.323 tons in May. Since Janu- ary 1 axports have reached 387,273, against 115,342 tons for six months of 1925 and 290,887 tons for the whole of that year. *laven ships carried 69,341 tons of the “Baltimore June coal to England, widle 39,669 tons went to Italy, A6Y2 tons Lo trewnd, 11,310 tons o since. The muvement, of course, is artifi- | cial, but may be expected to con- ox- are the | strike and for some time after. OPTINISM S FELT IN STEEL INDUSTRY Melon Cutting Not the Whole Reason for Rise in Principal Metal Shares. BY J. C. ROYLE. Special Dispatch to The Star NEW YORK, June 30.—June pro- duction and sales of steel and steel products have shown only a barely perceptible dip, although a decided sonal recession is always expected at this time of year. That is of far more importance to the country as a whole than the fact that United States Steel common stock has got Wall Street “all steamed up” over its ad- vance to a new high figure for all time. Men actually engaged in steel pro- duction say Wall Street is giving another proof of the saying that it can see no farther westward than the shadow cast by Trinity steeple, which_extends just about as far as the New York Curb Market, on Church street. Melon-Cutting Rumors. All sorts of rumors, including fore- casts of melon cuttings and stock divi- dends, have been circulated in the financial district to account for the steel advance. 'Steel executives of Pennsylvania and Ohio, in telegrams to the writer received today, point first to the fact that June pay rolls in the mills of those sections will be the largest for any June for years. They say the same is true of the Illi- {nois, Indiana, Alabama, Colorado and Pacific Coast plants. The consensus of their comment is, “Conditions are satisfactory and prospects encourag- ing.” The public, has scarcely which costs have been reduced in the industry by increased efficiency and improved machinery. One steel com- pany president says that the output per man in his mills has increased over 50 per cent in the last two years. New electrically operated mills have been put into commission since the first of this year. Better understand- ing exists between employers and em- ployes than ever before. In this connection the United States Steel Corporation has ‘made stockholders out of thousands of its employes. Since 1918 workers have bought under the stock subscription plan of the management 1,140,881 shares of common stock. Labor's share in the steel dollar now is about 45 per cent. as against nearly 49 per cent two years ago, although wages per worker have advanced. Whether or not there is a stock dividend, the fact remains that there wiil be only the difference between the cost of production and distribution and the sales prices, which is profit, to be distributed to stockholders. Therefore, the activity and condition of the mills is of more importance to the country than the fluctuation of the stock on the exchange. Profit and Loss Surplus. The profit and loss surplus of the company on January 1 totaled $622.- 000,000 whereas the par value of the |common stock was $508,302,500. Net tangible a applicable to the com {mon stock were above $280 a share. { If there should be a stock split-up it would bring no continued benefit to stockholders unless profits were such that an increased rate of dividends could be maintained. Steel prices seem exceptionally well stabilized, so there is no immediate prospect of sharp advances. The volume of busi- ness has been high but it is from effi- clency and economies that most steel experts expect addition profits to come. Demand for tubing from the oil dis- tricts has been one of the bright spots in the industry. Now mills are beginning to get large orders for wire fabric for road reinforcement and other construction work. Changes of models by automobile manufacturers have spurred orders for sheet steel and other products used in motors. Rallroads are sending in large in- quiries for steel requirements and many are placing orders for Summer replacements in right of way and shop work. including Wall Street, STEEL PRODUCTION RECORD. NEW YORK, June 30 (P).—“A new record in steel production was made in the half vear just ended,” Iron Age says. “With June estimated, the total is close to 24,250,000 tons, or nearly 1,000,000 tons in excess of the best previous record in a like period, which was made in 1923. July opens with the prospect of mill operations in the next 60 days at a rate substantially above the July-Au- gust average of the past 3 years. That 1926 may exceed the remarkable steel output of 1925 is now no longer con- sidered highly improbable, - though commonly so regarded at the begin- ning of the present year.” PIG IRON OUTPUT. NEW YORK, June 30 (#).—Pro- ducers’ figures for pig iron output in June, with the last three days of the month _estimated, indicate a total of 3,234,769 tons, or 107,825 a day, against 3,481,428 tons in May, or 112,- 304 tons a day—a decrease of 4 per WOOL MORE ACTIVE. Special Dispatch to The Star. BOSTON, June 30.—Territory wools _constituted bulk of the busi- ness done in the local wool market today, with most of the demand com- ing from top makers and spinners. Fine staple continued to be held for $1.10 clean basis, and considerable three eighths blood moved at 92a93 cents. Fleece wools are quiet. Aside from a slightly firmer tone in Cape wools the foreign market was quiet. s e R Files Bankruptcy Papers. Joseph Portner today asked the Dis- trict Supreme Court to adjudge him bankrupt. He conducts the Todd Shop and the Empire Hotel at 623 Pennsylvania avenue northwest. He lists his debts at $79,623.96, and esti- mated his assets at 00. represented by Attorn lan. {tinue until the end of the British | realized the extent to’| L. 'N. Kap —acadh THE EVENING STAR. WASHINGTON, D. C. WEDNESDAY, JUNE 30, 1926. BOND PRICES NOW | AT DECADE'S HIGH Remarkable Six Months. Is Recorded- in Market. Weakening Unlikely. BY GEORGE T. HUGHES. atch to the Star. YORK, June 30.—Midyear of 26 finds bond prices at the highest in"a decade. It has been a remark- able six months in the investment market. Slowly but surely quotations have boen creeping upward. At times the rise was interrupted either by an apparent hardening in money rates, by diversion of interest to speculative stocks, or by the competition of new issues. But all these were temporary influences soon overcome. Buying | tavor shitted, too, from group to group in the constant endeavor of Investors to find securities selling out of line, but the only result was to bring up the average. As to the outlook for the future at this writing, there Is no sign of any weakening in current prices. The one outstanding fact is the abundance of capital seeking employment. The opinion widely held is that money is to romain comparatively easy for an indefinite period. Strength of Government Bonds. - Among the many {nteresting fea- tures of the past six months none has been more significant than the per- sistent strength in United States Gov- ernment obligations. Yields on all Liberty and Treasury bonds have fallen to low figures, ranging approxi- mately from 3.60 to 3.80 per cent, the lower yield on the longer term coupon rate descriptions. And yet these low returns have proved no deterrent to the buying which has come not only from corporations and financal institutions but even from individual investors. The important factor in this strength of Government bonds is the constantly decreasing supply. This was emphasized only this month when the June 15 quarterly income tax pay- ment date was passed without any new Treasury financing, something which had not happened before since the war. On these quarterly dates the Government has always had ma- turities to be met as well as interest on outstanding bonds to be paid, and up to this last time it has been neces- sary (o supplement revenues by fresh issues) either short-dated or occasion ally long-term. Meanwhile outstanding Liberties are slowly. being retired through the sink- ing fund and preparations are being made .to meet the maturity of the third 43 Liberties in 1928, as well as to take advantage when a favorable opportunity presents ftself of refund. ing the second 4% Liberties, which become redeemable at the Govern- ment’s option next year. Mellon Keen Judge. Secretary Mellon has again showed himself a keen judge of the money market. In March of this year, just about the time the speculative cam- paign in stocks was collapsing, the | Secretary offering the first long-term | bond issue since the first Liberty loan, with a coupon rate below 4 per cent, the new issue being known as the 33 per cent Treasury bond, due 1956. The offering price was 1001 and many bankers were frankly skeptical about its success, but the event justified the Secretary. The offering was not only oversubscribed but went to a premium and has sold there consist- ently ever since, reaching its highest point this past month. That investors have no doubts about the market trend of Government bonds is proved by their marked preference for the longer maturities. They also favor the lower coupon descriptions. If there were any chance of a price setback the risk would be smaller the nearer the quotation approaches par for one reason because foreign coun- tries that have entered into funded ar- raugements of their war indebtedness to the United States have the privilege of making payments in Government bonds at par and their buying would serve to support the market around that price. That they will have any such opportunity, however, now seems entirely improbable. Tax-Exempt Securities. The situation as to tax-exempt se- curities is interesting. It was sup- posed that when the income surtaxes were lowered it would have an ad- verse effect upon municipal bonds and other securities which are tax exempt. This did not prove to be true. The larger citles were able to do new financing on just as favorable terms to themselves as before Federal taxes were reduced, the high degree of safe- ty compensating for the loss of a part of the advantage from tax exemption. Along this line the advance to a new high price for the year in the past month of the Liberty 31s was signifi- nt. On July 1 all the other Liber- lose tax exemption except for the comparatively unimportant amount of $5,000 to any one holder. Transfer of funds by wealthy investors into the 3155 brought about a striking price appreciation, but the corresponding selling had no effect upon the taxable Government bonds. ‘With regard to corporate obliga- tions, the only group in which there has been any sign of wavering was in those high-grade railroad issues com- monly known as ‘legal.” Taking Atchison general 4s as a typical bond in this class, the current price is on a 4.40 per cent basis. While there had been predictions earlier in the year of an advance to a flat 4 per cent yield this appeared less likely in recent weeks. Utilit\s in High Favor. No such limitation is in sight for the high-grade utilities. These are now in higher favor than at any time since before the war. As a class public utilities command a higher investment rating than at any time in years past. Slowly but surely they are working toward a parity with railroad bonds of equal rank. Naturally enough with a generally advancing bond market and declin- ing money rates there has been a good deal of refunding of their obli- gations by corporations anxlous to take advantage of the situation. One effect has been to limit the price ad- vance of callable issues to approxi- mately the call price. This has been most evident in the 6 per cent utility mortgage bonds. Nearly all of these are redeemable at the option of the company at around 105 to say around 107 and Investors hesitate to pay more for them with the posibility of having their bonds retired. Non-callable issues, of which there are comparatively a’few, have gone higher in the market than callable bonds even better secured. Trend of Lower Grades. Another direct ‘consequence of thée strength in the general market has been the increasing wHlingness of in- vestors to take a lower grade' of se- curity. The so-called middle and sec- ond grade bonds have been in active demand as the yield on the gilt-edged group went steadily lower. The lower priced railroad issues have been prom- inent in this movement, which had two distinct phases. Early in the year it was merger reports which helped along the rise. The idea was that the investment position of the bond of a small, weak road would be raised when the property was taken over by & large, strong road. Thers & #ome w5l in this idea, but it was carried too far. In no other part of the list was the effect of this constant inquiry for a more adequate return as evident as it was in forefgn bonds. For reasons that are well known yields in_this group are almost uniformly high. They were high at the start of the year and they are still high. Invest. ors In forefgn securities have had to tace many discouraging developments: There was the unstable French and Belglan exchanges, the lack of prog- ress in solving the French financial problem, the discord in the League of Natfons, the political overturn in Po- land, the industrial troubles in Great Britain and finally the break in the market price of the Italian bonds, once syndicate support had been withdrawn All these in greater or less degree operated to disturb confidence . in European obligations. to the strength of the inv mend that prices held as well as they 1d. Problems Are Unsolved. At this writing many of these Euro- pean problems remain unsolved and forecasts are hazardous. There were, nevertheless, favorable developments, which were taken advantage of to the full by bond bu For in stance, Germany hus made marked progress and the Dawes plan seems to be working out better than ap- peared probable six months ago. German dollar securities hive been in Washington’s Big Charge Account Store ior the Entire Family COR. 7th & E STS. ,, ESS-UF Pa brisk demand, especially so in the last month. Meanwhile South American obliga- tions have met increasing favor. Some_really notable price advances have heen recorded in this part of the list during the past six month vestors are beginning to discriminate between the various South Ameri Australian bonds have al their position for one reason, among others, that American bankers are no longer without competition in float- ing new loans for account débtors in this part of the world. —_— RUBBER UNCHANGED. Special Dispatch to The Star. W YORK, June 30.—C' smoked ribbed sheets, was un- at today's noon quotatior of his compares with 441 A month ago and 821 cents a ude rub- FOTATOES STRONGER. CHICAGO, June 30 (A).—Potatoes ~-Receipts, new, 45 cars; old, United States shipments, new, old, 46; on track, new, 160; old, New stock, market slightly Southern sacked triumphs, shade highe ked wrth Carolina, moxtly cobblers, 3.0 harrel, cobblers, £.00:16.10. "6.000 total | COMMODITY NEWS WIRED STAR FROM ENTIRE COUNTRY NEW ORLEANS, June 30.—Lum- ber production in the mills of the Southern Pine Association decreased 7.9 per cent in_the last week to 66, 900,000 feet. New business totaled 64,900,000 feet and shipments 70,600, 000 feet. Unfilled orders now total 268,000,000 feet. TULSA.—Oklahoma ofl well com- pletions have increased to 134 in the st week. These included 77 oilers, gassers and 45 dusters. CLEVELAND.—The Peerless Co. has reported that business so far this y for the corresponding period of 1925. Net profits for the first five months of this year total $694,000. TO. — California’s rice ge this season will be 50 per cent rger than in 1925, and will total 160,000 acre: The yield promises to be the best in years. CHICAGO. The Western scrap market is advancing for both iron and steel dvith heavy smelting steel around 13. The advance was sald to be a dealers’ boom with buyers hesitant wbout following it r 18 about 2,000 cars ahead of that | HEARING IS ORDERED. B. & 0. Must Show Cause Why It Should Remove Agents. Special Dispatch to The Star. BALTIMORE, June 30.—The Pub- e Service Commission today ordered the officials of the Baltimore and Ohio Raflroad to appear at a hearing be- fore the commission July § to show cause why the railroad should be per- | mitted to discontinue maintenance of agents at Branchville and Mufrkirk in Prince Georges County and Buck Lodge, Montgomery County, . depots. This actlon was taken by the com- mission following the receipt of pro- tests from patrons of the rafiroad. The company recently announced that it planned to discontinue use of agents at these stations. 2 The commission has begun its in- vestigation of the volume of business at the stations to determine whether agents are necessary. A number of patrons have an- nounced their intention to appear at the hedring. They will be represented by People’s Counsel Thomas J. Kin- ey. BANK CLEARINGS. NEW YORK, June 30 (Special). New York bank clearings, $1,001.000, 000; New York bank balances, $107.- | 000,000; New York Federal Reserve | Bank credits, $87,000,000, OPEN EVENINGS ALL THIS WEEK TILL 9:00 T =L 2 W O = = o W ik LI e & \ Entire Second 29 NEED NOW OF HIGHER PHONE RATES DOUBTED Baltimore Public Service Commis- sioner Sees C. & P. Co. Slowly Gaining € Per Cent Goal. Special Dispatch to The Star. BALTIMORE, June 30.—Intimation by A. E. Berry, president of the Ches- apeake and Potomac Telephone Co at higher rates may be sought in 27 met with the comment by Harold West, chairman of the Public Serv- Commision, that all prospect of in creased r: hould be removed de by the parent American nd Telegraph Co. from 4% t favorable ingly larger I company. nt monthly re earnings for the loc: He stated that re ports of the company showed a return within a_slight fraction of the 6 per cent fixed by the courts, and predicted that within @ short time the 6 per cent mark would be consistently at tained. BAR SILVER IS HIGH. EW YORK, June 30 (#).— silver, 63%: Mexican do) 5 The Fastest Growing Store Inthe U.S. A. TheyAllTrade At the Liberal Floor er Kresge’s 5¢ & 10c Store FOR THE 4TH No Money Down! ON ANY PURCHASE UP-TO $20 Not a Man, Woman or Child in Washington need be denied the pleasure of wearing Smart, New Summer Styles on Independence Day. Our No Money Down Sale sweeps all abstacles aside. 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