Evening Star Newspaper, November 6, 1926, Page 15

FINANCTAL. RANGE IN COTTON TRADING NARROW Market More Active—Even- Ing of Accounts Pending Report Monday Noted. By the Associated Press. NEW YORK, November 6.—Cotton futures opened steady. December, 12.20; January, 12.31; March, 12.54; May, 12.76; July, 13.02. The market was a little more active at the open- ing today, but prices fluctuated within a narrow range, most of the business being attributed further evening up of accounts in preparation for next Monday’s Government report. The opening was steady at a decline of 2 points to an advance of 1 point. Some southern hedging and a little local selling on easy Liverpool cables developed, but the trade bought and there was covering. Demand seemed sufficient to hold the market on the basis of 12.75 for May, and January fluctuated between 12.31 and 12.33 during the first hour Private cal #orbed by g in Liverpool with improved demand for cotton cloths and a larger business expected when the coal dispute has been set- tled. New York cotton futures closed barely steady. 1 point up to 3 down to Close. 0 New Orleans Market. NEW ORLEANS, La., November € (#). Cotton futures opened stead: December, January, March, The market sympathy with lower c: and first trades showing lo 8 points. Prices advanced call of trade buying, December trad- ing to 12.33, January to 12.3 March to , or 2 to 3 points above vesterda: s bulge attract- ed hedge selling, and prices eased off ®gain to the opening figures. New Orleans cotton futures closed steady 1 pomnt up to % down opened Close. Pecember . 1 i Liverpool Quotations. LIVERPOOL, November 6 Cotton—Spot quiet, ~ prices Amerjcan strict good middll good middling, 7.43; strict middling, 6.82; strict low mid- 6.47; low middiing. ; strict ordinary, 5.62, good ordinary, Salen, 4,000 bajes, Inchuding 2300 American. Recelpts, 32,000 bales, wll American. TFutures cloged quiet; \mem\.or December, 6.63 P).— dling, & May, , 6.70; larch, £8y September, 7.00. STOCK TRADE DROPS. Union Yards at Baltimore Report Smaller Business. patch to The Star. November 6. gock handled the Union Yards during October showed décre s compared with the responding month of last year. With only two small exceptions, <hipments showed a decrease. Re. s, on the whole, made more gains it did shipment: but here, too, here was a slight downward tenden The notable exception was in hog: this cluss showing an increase of Following are the tc Receipts—Catt] sheep, 35, MORE INSOLVENCIES. NEW YORK, November 6 ().—R. G. Dun & Co.'s Insolvency index makes quite an advance higher than it was iime last year, but more closely proaching the five-year average. wdditional failures in the South, are, sn part, for the advance Proportioned to the number of firms i business, the index for October was tt & ratio of 98.1, whereas it was 89.2 , while the five-year aver- inclusive, for that Insolvencies in the ith last month exceeded by about 30 per not only the cause puonth wa East and S 1hose of September eont Have You nem Stung Yet? Some men have to get stung good and hard before they learn to be cau- tious in making investments. Before you invest—investigate! EVERYMAN’S INVESTMENTS BY GEORGE T. HUGHES. Borrowing by “Shorts.” In the preceding article the opera- tion of selling before buying as it ap- plles to stock was discussed. The process is known technically in Wall Ftreet as going “short” of the market. A short is one who has sold some- 1hing he did not own because he be- Jieves he can buy it back cheaper later on. He is the opposite of a “long."” svho always buys before he sells. The Vbuils are the longs and the bears are the shorts. Now as we have been in order to o short” of a stock the seller must be able to borrow the stock he has #0ld in order to make dellvery. The ouestion then arises why any one! should be willing to loan’ stock to a short seller. The answer is that the Lorrower of the stock puts up with the lender a sum of money represent. g the full market v of the security at that time. Generally the lender of the stock s interest on this sum to the borrower, the rate being governed by market conditions &t the time. The lender is willing to make this mrrangement bec in this way, in effect, he borrows on stock its full murket value, whereas if he took it to the bank and put it up as collateral for a loan he could get only a certain percentage of its market value, More- over, the short seller who borrows the | stock is obliged under the terms of the agreement to keep the lender of the stock supplied with a sum equal to the market pr The lender of tock to short sellers at times reaps &n additiona! advantage. If the num- ber of shorts is very large, and the demand to borrow stock is heavy, the rate of interest rapidiy declines, and ocoasionally when the supply of stock is very small the lender of the stock is not obliged to pay any interest at all on the money put up with him as security. In that event the stock is #aid to loan “flat.” Finally it sometimes happens that the borrowers are so numerous and the loaners of stock so few that the former pays interest lln m:,mm for vilege of loaning him money ;:.h.uflle:::lly and in this case the stock is said to loan at @ “premium,” for October: | for October, being | at this | THE EVENING STAR, WASHINGTON, D. NEW YORK CURB MARKET Recelved by Private Wire Direct to Th Following 1s a list of bonds and stocks traded in on the New York Curb Market today. INDUSTRIALS. ® - et OL SO w D - ] o oot n ol SEEREBRESERE & FEAR 6320 1] FRR g s LSRR Bostscamn o) CHChEt e ity I ot ERGEESEABERR 1m0 ': mmon P n pfd 28 Gonsol ¢ Balt n. Dt e P St et e oMb DR D 1310003 WS RO OB e D o e e e Satn iR B RENE Sl ERER. 9 - w2 ot e T o FRRARARRRE & R I e Zom ousutms Dot uDm ot G DiseacammD oudmonh 0D BEHCE WPORRIRNNTIERE SN RIS R R W - » S S B o S mm 1 I 3B D R SRNSWRARE BN Tay Ry i S : # Ind Rayon Cor ‘A @Int Concrete Ind. 7Int Mat n pf wi 4 Intern Util *y Teh Coal £ £ Do - . G Gl o 51 5 5 S D08 PN D RIS A1 T A RO D S LS - % .. SR 5315 DTS L5 o A U TR W W rR e SRR PR R e ot Sastom s ouid o & oSt oo O S I N SR Y g e S A 3] 0 _ear % Peo Drug Store 1% Bifip Mor 7 Philip Morris 1pratt & Lamb 1 Pyrens M1, o mumonns o SR SRR Gh Ak 2ERan ST (o & i P A B TRER RS & B e T et T 9 ooy (AR oeory # 3 v =} ] Zo8a 3 OB S8 pn Gt D SR SBLRRE RN B ERa855S = R RS FERE RO FERERE F S F Sales MINING STOCKS. in hundreds. 20 Ariz Globe C 10 Cons_Coy 2633 = ale 10 Forty Nine M. 11 Golden Center 10 Hawthome M I. o Am &P 10 wm.m.‘ ol Gold. 1Uni Verde Ex Sates” INDEPENDRNT oI, & in hundreds, FER 2 15 ot B 2 & 3 8, % Pl 30 Mex Ol 37 Mex Pamiico ount Prod at Fuel Gas. ew Mex Land it 3 =ue I3 & raor onThs St I ooy ES i 1 Red Baik O cr-Foster O 2 o 3 ez Ee » 200 Anglo Am Ofl. 104 br'gh Mfg mna 00 Continent Ol 200Humba ou R BT% L2 134 - LS FoER R EretrE et T 33 LS8 OB DL e RO It 5 2522255 ERFSEEN] = ) o 333 [ [y D255 3 oy £ o, V. %@ B3+ A D 5 - 2050025000000 0319005 - ) ks EE L porieey & s D33 sh s o000l oo 5o Bon3o00050 03l 2 N mvvgvyg;gzzzz g55Z5woiBg 33 > 3 S of S 2o 3 3 : o UEEIR TSR SR R R AR & oloonooho500:s! .28 X SIS ; e PR Tioretiute) R 2 o z S 2 -4 & - e 2555 c oD DDRo00DD5D; 25333038335 352335R 2333 RBRR IR B2V 2RREBIRRR3! 9 @ 2 22 532 o) 25 od Son 22303 . = 33333833020 350 IR IR De D ROID B0 EEREEEREEITE Rt e 250555 ) 3 é Rt 78 Wont En T 08 1008 Sales FOREIGN BONDS. in thousands. 11 Antioqua 7s A R Antiodia 72 B EEER Y 25553854 0 wgniézzzz oo 332 2R 2 @23 R NEW YORK, November 6 (#).— Higher pig iron prices are reported from various districts. In eastern Pennsylvania territory some dealers are quoting $23 a ton for number 2 foundry, up 50 cents and $1.50 a ton over levels several days ago. A rise of §1 a ton is reported in the Youngstown Valley to $20 a ton. At Buffalo, Bethlehem Steel has ad- vanced quotations to $21 and Wick- wire Spencer-Steel to $20. Iron and steel scrap are up 25 to 50 cents a ton in the Chicago district. | | BY STUART P. WEST. Special Dispatch to The Star. NEW YORK, November 6.—The stock market has gone higher during the last week, with some notable ad- vances among individual shares. No new influences have been back of this movement. It has simply been an upward reaction after the severe de- cline of late September and early Oc- tober. This decline readjusted a spec- ulative situation which had become topheavy after the Midsummer op- erations for the rise. Wall Street went too far in July and August on the buving side. It took an exaggerated view of outside business conditions. It did not note sufficiently the numerous points of uncertainty. A picture was drawn of another Autumn like that of 1925 when there was general pros- perity and a big speculation. This forecast was not realized. Credit conditions were as easy as | those of a year ago, but business con- |ditions were more irregular. The great fall in cotton prices was the first | break in what seemed to be an auspl- | cious trade outlook. Next came the | admission that automobile production | achedules were being cut down, that it was necessary here and there to re- duce prices and that altogether com- petition in the motor industry was on the increase. This has had its reaction | in the demand for steel. Steel Earnings Reduced. The three principal customers of the steel mills are the automobile manufacturers, the building trades and the railroads. The automoblle | centers have cut down their purchases | and buying, for building construction | s not as keen as it was in the Sum- mer. On the other hand railroad buy- ing has kept up. The net result is that the fourth quarter promises somewhat reduced earnings for the steel companies with- out any serious falling off. The un- tilled orders of the United States Steel | Corporation when they are reported | for October are expected to show a substantial increase. The strength of the steel shares in the market of the week is certainly not consistent with any idea of an important reaction in the steel industry. Big Speculation Unlikely. | The Wall Street position has shown itself to be distinctly stronger. Liquida- tion, following the speculative ex- cesses of the Summer, ran its cougse by the middle of October. Since then there have been recoveries occompa- nied by some fresh advances. As yet there are no indications of this condi- tion developing into a big speculation for the rise like that of a year ago. It is & professional market inclined to work higher, but there are no grounds for enthusiasm like there were in Oc- tober and November, 1925, upon which to_base & muor forward & Back of the JVall Street w STOCK MARKET GOES HIGHER ON REACTION FROM DECLINE there is an unusually strong invest- ment situation. Time money rates have come down at the season of year when ordinarily they are at a maximum. The thought ~easily oc- curs of what will happen in January and February, when the crop moving funds return to the reserve centers. If there is a surplus money supply now, what will it be then? The in- vestment market is bullding upon this conception. Investment values stand at the highest of the year—in fact, the high- est of years, The outlook seems to be that buyers of investment securities later on will be forced to accept still lower ylelds. Forelgn Bonds Strong. The remarkable success of the Belglan stabilization has continued to manifest itself in the market for European bonds and in the market for foreign exchanges. French francs have forged ahead to a higher level than anybody anticipated. French government issues have been quoted jat the highest of the year and in the case of the 7 per cent at the highest of all time. The new Belglan dollar loan has been selling at a premium of over 4 points. All this portends a further bringing out of foreign {ssues upon the American market. The cotton trade has been waiting for another staggering report on pro- duction when the bureau comes out with its figures on Monday. A lot has been said on the subject of holding cotton back from market with the aid of banking resources. But, of course, this cannot bring about higher prices. It is only designed to check panicky selling. No real cure for the cotton situation can come until the area planted to cotton is partially diverted to other crops. Then, and only then, will there be a real reduc- tion in the supply sufficient to equalize demand. Ol Shares Hold Up. Price cutting in the oll fields has haa little effect in Wall street. Wall street has known for a long time that pro- duction was excessive, and it was pre- pared for the news. Oil shares did not participate in the Midsummer campaign to any large extent and were therefore better fortified against urfavorable trade news. Sugar trade conditions are being watched with interest. The raw sugar market is somewhat higher, and ad- vances have occurred in refined sugar, The significance is that, in view of the loss due to the Cuban hurricane and the increased world consumption, the sugar market may have gone too far on the downward side. The elections cut little figure in financial calculations. Wall street is chiefly interested in business cond!- tions, and while at the present time these are mainly favorable, they are still recognized as belng a good deal rized RECORD-BREAKING YEAR SEEN BY C. W. MILLER Special Dispatch to The Star. BALTIMORE, November 6.—“This is a record-breaking year for busi- ness,” according to C. Wilbur Miller, president of the Davison Chemical Co. and of the Silica Gel Corporation. “Figures showing bank clearings, savings deposits and industrial ac- tivities of all kinds show that this year and the year to come will not be of the sort to furnish material for the calamity howler,” he said. “The new South, which was built on the ruins left by the Civil War, is not going to be knocked to pleces by a Florida hurricane or a bumper cot- ton crop. Since 1900 we have had three seasons when over-production of cotton has occurred. The situation which resulted proved helpful rather than injurious to the South in the| long run. Each time it has turned the farmer’s attention to other crops and more diversified operations. Trucking, fruit growing, stock raising and production of the cereals are greatly increased.” HECLA TO CUT MELON. SPOKANE, Wash., November 6 (). —Stockholders of the Hecla Silver- Lead Mine of Burke, Idaho, will be paid $500,000 dividends on December 16 for the final quarter of the year, & disbursement of 60 cents a share. | The payment will increaso the total | dividends for the year to $2,000,000 | and the total dividends of the mine to $16,105,000. HARTMAN SALES RISE, NEW YORK, November 6 (#).— Sales of the Hartman Corporation for the 10 months of 1926 rose to $15,731,- 952 from $12,422,834 in the same perlod of {925 a gain of more than 26 per cent. WE FINANCE —all classes of income-producing property| Large Loans a Specialty C\ll'fw.nl fill rate and commission Higbie & Richardson, Inc. 816 15th St. N.W. CONSULT US toolhe l\?“u'! g’! lnvuunr Wm. H. s-unden Co, Founded 188 xas7wu 3K ot Lowest Rates Th ] T LOANS ON DISTRICT PROPERTY Provident Mutual Life Insurance Company Funds THE mu co. 1522 K St. NW‘ Main 10’76 Prompt Action. Fll‘lt Mortgage Loans|| of Interest and Commission 0., SATURDAY, NOVEMBER 6, 1926. Per FINANCIAL. REAL ESTATE LOANS 5%9% FRED T. NESBIT 1010 Vermont Ave. Main 9392. The New York Life Insurance Company First Mortgage Loans On Improved Real Estate in the District of Columbia and Nearby Suburbs in Montgomery County, Maryland 3 Years, 5 Years, 10 Years 2= D60 RAaNDALL H. HAGNER® COMPANY MORTGAGE LoaN GORRESPONDENT 1321 Connecticut Avenue Telephone Main 9700 We will gladly receive Bgfi:-’l:m and give prompt attention to applications for Loans on Washington Real Estate Current rates of inter- est. Should you have Money to Invest —we can also take care of you. Our experience, ex- (endmg over a period of Thirty-five Years —insures vour protection. . Russell Co. 926 15th St. N.W. A Third of o Century’s Experience What Does Your Apartment & Ce Ine. 338 15t Btreet " When You Need a Loan Think of Welch, Realtor Loan Specialist Money to Loan At 5Y,9% & 69, Interest Betors Placing or, Renewing Your fon's im Reasongo c?::rr s ( “.5"rxm.\ 15th & N. Y. Ave. Main 434647 R REAL ESTATE BONDS Holders of bonds of this class will do well to communicate with Charles E. Glasser & Co., Inc. 41 East 42nd Street, New York City. Money to Loan Secured by first deed of trust on real estate. Prevailing intereat and commission, Joseph 1. Weller {30 Wast. FOR SALE First Deed of Trust Notes Bearing 6,% Interest See WELCH Realtor Established 1899 15th and New York Ave. Main 4346-4347 No Loss to an Investor in 27 Years HOME FURNITURE LOANS vonr -amy T frewe thnn '$100" monm tape. Two days to mon- Tonatd | Small montiy payments. Furniture Loan Procurement Co, No. 3 Harlow Ave.. Rossyln, Va. 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Swartzell Rheem & HenseyCo.. geBankers gl 37ye-rl Without Loss To an Investor FIRST MORTGAGES FOR SALE 6% % l\gflg‘lfllwm INVESTORS BI n denominations of $250, $508, s7so. $1,000 and upwards, se- cured on improved real estate situated In the Distriet of lumbia. JAMES F. SHEA 643 Louisiana Ave. N.W. ml'.:mam; Made on Rentals First Mortgages Second Mortgages NO APPRAISAL FEES NO RED TAPE QUICK ACTION, Guaranty Mortgage Co. 468 Louisiana Ave.,N.W. Main 1050 HOME OWNERS LOANS o to $200 within one day, 6% Inbebost o We taie % znd. Sra 'or mn Being in what pepers veu Real Estate Small Loan Co. 704 District National Bank Blde. Cash in bank, [nvestments .. g \ Earnings—The comg a; Accrued interest receivable. Deposit on American Building_ . Furniture and fixtures, .. .cce..ceee ‘William John Eynon Vice President Byron 8. Adams Lester A. Barr earn during the year? Is it satisfactory? Do you know definitely? Our Management service at- tends to every detail of operation. It puts the management on a defi- nite basis. It gives you periodical reports of progress—and profit. B. F. SAUL CO. Main 2100 925 15th St. N.W. Members: N. Y. Stock Exchange 111 Broadway, New York —Now occupying their New Offices— 729 15th St.N.W. WASHINGTON, D. C. Telephone Main 1603 %‘MMWWMIM TEST A m Florida Investors Atantle City's most relia- r, and__developer, iz A Man’s Judgment Is as Good as His Information— And this holds true in Investment. Of what vital importance it is that the In- vestor have authentic, dependable infor- mation regarding a contemplated medium. Our First Mortgage Notes —are secured on Improved Real Estate in the Nation’s Capital. e loans on these properties are made only after rigid inspection by our Highly Specialized Ap- development, praisal Committee. restrictions are of the Dighest character and warrant big profits. Address Box 110-J, Star Office Give Phone if Possible FEDERAL-AMERICAN COMPANY 6% Preferred Stock, At $100 Per Share Security—The company has no bonded debt, so this stock is pre- ferred both as to assets and dividends. ; y began business on June 10, 1926, and earnings have from the beginning far exceeded divi- dend requirements on the preferred, as shown by the statement below. FINANCIAL STATEMENT as of October 30, 1926 LIABILITIES Accrued interest and wumnu w;blo. aee Notes payable . ., Reserve for taxes Total Liabilities ......... NET WORTH . .$255,900.00 $32,483.98 1,257,048.16 6,789.36 165,000.00 509.00 $1,217.00 890,000.00 4,709.02 Total net worth. .. Total Liabilities and Net Worth. . ... $1,461,835.50 — 1,005,800.48 Officers and Directors ‘W. T. Galliher, Chairman of the Board John Poole, President Wilmer J. Waller Charles B. Lyddane Charles D. Vice President Beoretary-Treasurer Asa’t Beo'y-Ass’t Treaa. Myer Cohen W. F. Ham Arthur D. Marks William Knowles Cooper ‘W. Harris John L. Newbold John Dolph C. M. Ha;g:y' John Poole Ralph J¢ James Brown Seott Warner Stutler Leon Tobriner George E. Walker Wilmer J. Waller J. A. Maedel L. Perry West As Strong as the Men and Money Behind It We Have No Salesmen—We Pay No Commissions—We Give No Bonus Stock This Stock Will Be Listed on the Washington Stock Exchange THE FEDERAL-AMERICAN COMPANY Office: 1352 G Street ™™ Bubscriptions Recelved at the Company Office or by Federal-American National Bank