Evening Star Newspaper, February 27, 1927, Page 42

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42 INVESTING MONEY INDISTRICT URGED $50,000,000 Believed Placed Outside Capital by Resi- dents of the City. BY EDWARD C. STON! Before the opening of the Indus- trial Exposition in this city on March 10, Chamber of Commerce officials have been conducting 3 to show the need of greater 1 cxpansion in the National Capital. The data collected indicated that £50,000.000 1s now invested outside of the District by Washingtonians, and the chamber officials believe that if this sum were placed in local enter. prises it would mean an increase of something like $10,000,000 a year in salaries and wages in this city 180 is estimated that the greater re- ®ources would furnish employment for 8,000 people who now have to seek work elsewhere. “According to the 1920 census re. port there were more than 200,000 | persons gainfully employed. in the District,” said M. A. Leese, president of the Chamber of Commerce, com- menting on the organization’s data. “Excluding the 60,000 Government employes, there were more than 140,000 persons emploved by estab- lishments engaged in trade here. Much Spent Here. hat means that the business projects which are operating in Wash ington probably pay out more than $100,000,000 to their employes vearly.} Much of this money is spent here in the city. Yet, we hear muny per- sons say that shington is not an industrial city, that its business en- terprises are inconsequentit, und that there is no reason for wanting to ex- pand the commercial structure of the cit ‘hese persons point to Govern- ment employment as offering the{ needful opportunities for employment { for our voung people. But I believe some thought will convince any one that this outlet for oncoming genera- tions is evidently. inadequate. Under existing law governing appointments of Federal employes, only about 11,000 of the 60,000 Government em ployes in Washington have been ap- pointed from the District. The Dis- trict is now above its appointment quota and the number placed in gov- crnment jobs will be small for some years to come. “What we must do, then, as a com- munity, is to provide more private opportunities for livelihood, not in smoke - belching, heavy industrial plants, but 1in the establishments engaged in activities of a lighter char- acter such as operate here now in keeping with the plan for beautifying “Investment Trusts” Appear Here. | “Investment trusts” hav made their debut in this city arter having been dealt in for some time in New England and New York. The aim of this comparatively new form of invest- ment is to give greater diversification in securities. The company offering the “trusts” buys the common stocks of some 80 corporations covering many important branches of American in- dustry. The stocks are then turned over to a bank which acts as trustee and issues certificates against them, the certificates thus representing proportionate of all the securities deposited with the trustee. rnings on the trusts accrue from dividends on the deposited stocks and are distributed pro rata by the trustee semi-annually to the certificate holders. Such disbursements include all regular and extra dividends, sale of rights, etc. Brokers handling the trusts say that one of the chief purposes of the plan is to enable small investors to get a share in the profits of many different concerns, which would be impossible if they had to buy so many stocks themselves. Not more than 5 cents of each dollar of the trust's funds may be invested in any one company. The certificates are offered in small or large denominations and may be sold at any time through banks or brokers at the prevailing market quotations. ‘Walter S. Bucklin, president of the National Shawmut Bank of Boston, recently expressed his belief that the investment trust is henceforth bound to be a vital factor in America's se- curity field. He considers the fact that experts, instead of an individual, decide what stocks are to be bought is most advantageous. Local Security Prices Firm. | Week-end prices were strong on the Washington Stock Exchange. Ameri- can Security & Trust Co. stock sold up to 375, fractionally higher than it has been previously this year. Po- tomac Electric Power preferred came out at 108%, Washington Gas Light sold at 70 and 70% and Peoples Drug Stores preferred registered 108%. One hundred and fifty-six shares of Washington _ Railway & Electric changed hands at 91. There was a zale of 20 shares of Natlonal Mort- gage & Investment preferred at 81. Bonds were in good demand. Capi- 1al Traction bs sold at 101%, and Georgetown Gas 58 came out at 100%. Washington Gas 6s, Series A, sold at 104% and a bit_lower for baby bonds, while the Series B issue brought 104%5. There was a $4,000 sale in Barber & Ross 61 per cent bonds at 9915, In the unlisted department Chapin-Sacks 8 per cent preferred stock sold at 100. Record Sale in U. S. Bonds. The biggest block of United States Government bonds sold on the New York Stock Exchange in more than eight years changed hands yesterday when $1,000,000 of Treasury 3%s were sold at 104 11-32, or off 532 from Thursday’s close. The largest block of United States Government bonds ever sold on the Exchange was $3,800,000 of fourth Liberty 4%s at %8 on November 4, 18. Pennsy’'s Net Up Over $5,000,000. Preliminary statement of Pennsyl- vania Rallroad Co. for year ended December 31, 1926, filed with Inter- state Commerce Commission, shows net income of $67,774,263 after taxes and charges, equivalent to $6.78 a share (par $30) on 9,985,314 shares of stock. This compares with net income Yeported to the commission for 1925 of $62.375,182 or $6.24 a share on 9,983,468 shares then outstanding. The Atlantic Coast Line Railroad has applied to the Interstate Com- merce Commission for permission to lease the Washington & Vandemere Rallroad, a 40-mile line in North Carolina. Bonds Voted for National Park. The North Carolina State Senate has passed a bill providing for issuance of $2,000,000 bonds for the purchase of land in the Great Smoky Mountains ot western North Carolina for inclusion in a national park to be known as the Great Smokies National Park. The bill now goes before the House. The proposed park would lie in North Carolina and Tennessee, which States would be required to furnish 428,000 eres of land before the Department of Interlor would take over the area. Bank Elects New President. Dr. Earl K. Richardson has been elected president of the Citizens' Bank at Takoma Park. He succeeds Luther 8. Cannon, who resigned. The action was taken at a special meting of the directors. Mr. Cannon plans to devote his whole time to other interests after having been president of the bank ever gmco # was organized jn 1923, {3 to5 Baltimore Markets ! BALTIMORE, February 26 (Spe- leclal,—The egg market continues to rule easy and values have shown a steady decline all week, closing today at 23 and 23% cents a dozen for native and nearby firsts in free cases, ia drop of 2 cents a dozen from open- ing prices Monday. Receipts have been {liberal this week, and more than ample for the demand, which, owing to weather conditions, is somewhat of a speculative character. The market continues to be a day-to-day market, and if the colder weather now pre- vailing continues next week, an ad- vance in price may be looked for, although commission men do not look for any material change unless there is a curtailment in receipts. Duck eggs made their first appear- ance on the market this week and met with ready sale, the market open ing at 85 cents a dozen and closing today at 40 cents a dozen, with receipts light and demand good. The general live poultry market, with the exception of turkeys, con- tinues active and firm, with a steady demand prevailing for large fat stock, and values show another increase over last week. The season for turkeys is drawing to a close and demand, as is usual at this time of the year, is limited and centered on medium size stock with hens preferred, while heavy old toms or gobblers are slow sale. Young hen turkeys 9 pounds and over will bring 42 cents a pound and gobblers 38, but old toms are slow sale at 35 and poor and crooked breasts neglected at 25. Winter chickens, 23, pounds and under, are scarce and wanted at 38 to 40 and while large smooth fat young chickens bring 30 to 85, poor and thin fowl are slow sale at 25 to 28. De- mand continues good for old hens 314 to 41 pounds at 31, but lighter fowl and Leghorns are not so active at 25 to 28. Old roosters are in better de- mand at 20, while capons meet With ready sale at 33 to 35. The market for ducks holds firm at 28 to 34 for stock welghing 4 pounds and over, but smaller fowl is not wanted at 23 to 25. Guinea fowl and pigeons in THE SUNDAY STAR, WASHINGTON, D. C., FEBRUARY 27, 1927—PART 1. WOOLLEY. RADIATOR KING, RUNS Says Outlook Is for Continued Good Trade—Scoffs at “Cycles” Now. Sees No Danger Signs on Horizon of Industry—Cau- tion Advocated. BY M. S. RUKEYSER. Clarence Motts Woolley. president and chairman of the American Radia- tor Company, has long run his com- pany on the basis of applied cconomic scholarship. Untll recently, he modified sales and credit policies of his company, with its far-flung world-wide organization, in accordance with tis reading of changes in the business cycle. Mr. Woolley is mo longer that. 1 asked him why as I caught him on the run in the tower of the Radia- tor Building on West Bortieth street, New York. Mr. Woolley will talk freely to serious studenfis of the busi- ness situation, but avaids personal publicity and is interview shy. He talked with the understamding that he would not be quoted, but I later con- vinced the kindly blue-cyed executive, who has iron gray hair and a friendly emile, that his views, if .published. would help other business men to think out their own problems. “The business cycle,” Mr. Woolley said, “has been abandoned; or ad- journed. We are no longer much concerned about it because of the ef- fect of the Federal Reserve system in introducing scientific banking, Prior to the establishment of the Federal Reserve system, whenever, we reached doing only moderate receipt, and with de- mand good, market holds firm at 50 to 75 each for the former and 30 to 33 a pair for the latter. Demand for dressed poultry is very limited and mainly for voung hen tur- keys and straight lots of young chickens. With the exception of capons, however, dressed poultry will not bring any more than live. Capons as a rule will bring a pre- mium of 2 to 3 cents a pound over live. Produce Quotations. The white potato market shows little change from last week under moderate receipts and fairly good de- mand for well graded No. 1 stock at 2.50 to 2.75 per 100 pounds, but run of the patch and No. 2 stock are slow sale at 1.25 to 2.60. Market for sweet potatoes and vams holds steady and good dry stock will meet with ready sale at 2.00 and 3.00 barrel, but over- large and dirty stock are slow to move out and of irregular value. De- mand for native and nearby garden truck easing off owing to increase in receipts of early southern vegetables, and it takes No. 1 graded stock to bring outside values at the following quotations: Brocoli and Kkale, 50 to 1.00 barrel; carrots, 4.00 and 5.00, 100; onlons, 1.75 o 2.75 per 100 pounds; oyster plants, 4.00 to 6.00, 100; par- snips, 40 and 50 basket: spinach, 1.25 to 1,50 barrel; turnips, 35 and 40 bas- ket for washed, and and 30 for unwashed. Live Stock Market. The live cattle market rules steady tc firm under generally light receipts and a fafrly good demand for top grade stock. Fall lambs are in very light receipt and meet with ready sale at full values, while tiere is also a good demand for handy wejght veal calves. Common to ordinary cattle, however, is siow sale at inside values. Quotations tod: Light street wharf: Beef cattle—First qualit. pound, 8 to 9; common to medium, pound, 5 to 7; bulls, as to qualit pound, 4 to 6; cows, choice to fanc pound, 5 to 6; common to fair, pound, 2 to 4: oxen, as to quality, pound, milk cows, choice to fanc head, 50.00 to 75.00; common to fair, head, 30.00 to 50.00. Calves—Veal, choice, pound, 15% ordinary to medium, pound, 12 to 1 rough and common, pound, 9 to 10; small culls, pound, 8. Sheep—Choice, pound, 6 to 7; old Eucksx, pound, 4 to 5; common, pound, 2 to 3. Lambs—Fall, cholce, pound, 13% to 14; fair to good, pound, 10 to 12; com- mon, thin, pound, 8§ to 9. Hogs—Straight, pound, 12 to 12%; ows, pound, 9 to 10; stags, pound, 5 to 7; old boars, pound, 3 to 4; live pigs, pound, 18 to 20; shoats, pound, 15 to 17. Receipts of dressed hogs have been mare . liberal the .past week and the market rules easy under only fair demand at the following quotations: Choice light weights, pound, 15 to 16 medium, pound, 14 to 15; heav: pound, 13.to 14. Closing Grain Prices. Closing grain quotations: Wheat, No. 2 red Winter spot, 1.44%; No. 2 red Winter garlicky, spot, 1.39%; No. 3 red Winter garlicky; spot, 1.35%. Corn: Domestic, No. 2 yellow, No. 2 spot, 818%. Cob corn: 4.00 per barrel. Oats, No. 56; No. 3, 61%%. Rye, neas 1.00a1.05. OTTAWA, Ont., February 26 (). A measure for the refunding of cer- tain maturing financial obligations of the Canadian National Railways, totaling approximately $20,000,000, will be introduced at this session of Parliament. The legislation, spon- sored by C. A.,Dunning, minister of raflways, will authorize the issuance of substituted securities guaranteed by the Dominion as to principal and interest. INCOME IS LARGER. NEW YORK, February 26 (#).— American Bank Note . had net income of $2,009,822 for 1926, equal after preferred dividends to $3.51 a share on the common, against $1,699,- 491 .or $2.68 a share in 1926. The new president was elected to the board a_year ago and re-elected at the regular annual meeting. Virginia Issue on New York Board. The New York Stock Exchange has listed 104,870 shares of Virginia Elec- tric & Power Co. 7 per cent cumulative preferred stock of $100 par value, and 27,796 shares of 6 per cent cumulative preferred stock of $100° parvalue. The report of the Virginia company for the year ended December 31, 1926, shows net income of $2,019,938, after Federal taxes, depreciation, interest, etc., against $1,846,442 in 1925, Financial News in Brief. J. A. W. Iglehart & are offering a new issue of $350,000 Southern Wood Preserving Co. first closed mortgage 6% per cent gold bonds, with stock purchase warrants attached. The war- rants entitle the holder to purchase common stock of the ompany in the ratio of 12 shares of stock for each $1,000 bond at $8 per share, The bonds are offered at 100 and accrued interest. ‘The comvlete spots committee of the District Bankers' Assoclation named to plan the events for the June con- vention at Hot Springs, is_composed of C. H. Pope, chairman; E. P. Wilson, vice chairman; Clyde B. Asher, Herbert T. Shannon, Charles H. Doing, Fzra Gould, Ralph P. Barnard and Bypum E. Hinton, a period of normal business prosperity it was brought to an abrupt end by a panio® because of the inadequacy of currency and credit. That in brief was the business cycle. In the old days, when business got good, we be- gan to pull in our horns in the belief that a smash was coming. Says Outlook is Good. “That is no longer the case. In my opinion, the outlook is for continued good business. 1 see no reason why we should not have a prolonged period of good times with occasional moderate setbac! which other coun- tries with scientific banking, like England, enjoyed before the w: In England, hard times used to consist mainly of a spell of 6 per cent money."” Queried concerning prospects in his own line, Mr. Woolley said that the sale of heating apparatus was not en- tirely depending on_continuance of the building boom. ‘“Besides equipping new buildings,” he explained, “we have a big field in installing modern heating facilities in old buildings. | Many homes, in spite of the rising standard of living, have no adequate heating arrangements, so there is still a large undeveloped field for cultiva- tion.” Mr. Woolley aserted that he saw no danger signs on the business hori zon. The prevalence of caution, he thought, was a restraining influence, which would tend to prevent excesss. ‘With factories in foreign countries, Mr. Woolley has facilities for keeping in touch with world developments. He sees signs of improvement in Europe, articularly in Germany and England. he said, “average earnings in our industry, expressed in terms of gold, have risen from $1.40 0, and in England from day to $2.75. Unemployment is decreasing in Germany. Wages in France, Italy and Belgium, however, are still below those prevailing in countries on the gold standard. Magnificent Spendthrifts.” “In Lord Roseberry’s phrase, the countries with depreciated currencies are magnificent spendthrifts, export- BUSINESS ON ECONOMIC STUDY CLARENCE MOTT WOOLLE President and chairman of the Ame can Radiator Co. ing natural resources and wealth at too low a pr “All Europe, is interested i mass production missions have country to visit can Europe will go far in this of installing labor-saving 1 but will be handicapped in competi- tion with the United States by the fact that the volume of consumption in their own countries is compara- tively low. The need in Europe is to raise the standard of living—to get people to consume more.” : Mr. Woolley believes that there is an important new factor in the Amer- fcan business situation—“the growing economic culture of the average busi- ness man.” Mr. Woolley traces the new interest in practical economics to the war, when the Government at Washington made scientific surveys of the re- sources and productive power of the country. He pointed out that bank letters and financial pages of news- papers are giving the average busi- ness man an opportunity to keep fully informed concerning the trade. Abroad, he said, there is no compara- tive amount of public interest in busi- ness statistics. The bankers in Ei rope may be interested, but the bu ness men are not. Tllustrative of this American trend, Mr. Woolley cited an incident which occurred when he was motoring through Maine in the Summer of 1920 shortly before the post-armistic col- lapse in commodity prices. He went into a general store in the Maine woods, run by the McCloskeys, who have had the store for several gener- ations. “I saw handkerchiefs at 50 cents aplece which appealed to me, and I asked for six,” Mr. Woolley told_me. “The storekeeper informed me“that he could only permit me to take two. Merchant Rations His Goods. “I asked him why, and he said, ‘T think we are facing a major deflation, and that by the end of the year prices will be cut in half. I am therefore buying no new merchandise, but want to keep some goods on the shelves for the benefit of my customers. 1f I did not ration goods, my shelves would be {bare, and T would probably allow some | salesman to talk me into stocking up.’ “I asked the country storekeeper how he reached his opinion, and he replied that he had been following the Boston bank letters and the financial pages of the city newspapers. “It was interesting to me that a country storekeeper kept himself so well informed. The incident is typical ‘particularly Germany, vican methods of TRADING IS LIVELY IN CURB MARKET Some New High Marks Are Set. Massey-Harris Shares Gain About 10 Points. By the Associated Press. NEW YORK, February 26.—Trad- ing on the Curb Exchange today con- tinued at a lively pace for a short- ened session and the demand in numerous issues effected material ad- vances, with some reaching new high levels. Among the latter were Massey- Harris which made a further gain of about 10 points to 110. White Sewing Machine advanced a point, selling toa new high at 22. Rand Kardex issues were in increased demand after an early slump. Railroad issues were easier. Pittsburgh and Lake FErie vielding 2 points and Western Mary- jand first preferred sold off 1%. Fajardo sugar canceled part of yes- terday's advance on a drop of :‘/gl points. Public utility shares were mixed in trend. Commonwealth Power rose to a new high at 46. Electric Bond and Share and American Gas were in sup- ply at the opening. In the ofl division Anglo-American and Lone Star Gas were strong fea- tures. The last-mamed issue followed yesterday s upturn of 3% points with a further gain of about 2 points. Other oils held steady with trading following the increased activity in other groups. In the closing hour dealings in the several groups developed exceedingly large dimensions, and buying ad- vanced quotations in the industrial section from 2 to 10 points. Promi- nent among these were American Cel- lose, which opened up 11 points. Trum- . | bull steel preferred 43, Safeway Stores 4 and Richmond Radiator, 2%. SALES NEAR OUTPUT. NEW YORK, February 26 (#).— Cotton goods sales in the gray goods division for the week closely approxi- mated the output as a whole, print cloths being the most active fabrics in sales. Printed wash fabrics and fine woven fabrics in mixtures sold well. Yarns were steady. Knit goods were quiet. Burlaps were firm at the week end. Raw silks closed generally _stead: silk prints sold more freely. Wool goods were quiet. SHIPPING OUTLOOK BETTER. NEW YORK, February 26 (P).— The shipping outlook is better than a year ago. said Robert H. Blake, associate director of the Cunard Line, salling abroad today. Oil and wages are both up and the margin of profit on the present passenger rate was rather small, he said. The entire Cunard fleet is burning oil. WILL REDUCE GASOLINE. NEW YORK, February 26 (P).— Standard Qil Co. of New York will reduce the price of gasoline one cent a gallon in its New England territory next Monday. The Atlantic Refining Co. also will make a similar cut. ¥ of the widespread economic culture in the United States.” Though an_intelligent student of business, Mr. Woolley is far from the academic type. He eatered business in Detroit 39 vears ago, immediately after leaving school. He worked in a wholesale concern, and learned all sides of the business, including keep- ing books. He assisted in organizing the Michigan Radiator & Iron Co. in 1887 when he was 24 years of age. He became secretary and director of the company. In 1892 he moved to Chicago and helped to launch the American Radiator Co., of which he has been chief execut since 1902 During the war Mr. Woolley served as represeniutive of the Secretary of Commerce on the War Trade Board. Mr. Woolley's company was mobilized during the war, turning out 20,000 shells a day for the allies. Mr. Wool- ley received the Cross of the Legion of Honor. theé old cleaner help pay for your We will give you a liberal allowance for your old cleaner, of any make, on the purchase of a Greater Hoover. This generous offer removes the last obstacle in the way of your having the cleaner you want— the one that you know is est. It’s a mistake to worry along with half-way cleaning methods, when you can have the Greater Hoover —and have it so easily. No other way of cleaning approaches the Greater Hoover in efficiency. Even the best previous Hoover model—admittedly the most efficient clean- ing device in the whole field—did not approach within 131% of the cleaning ability of “Positive Agitation” is the explanation of its amazing superiority. “Positive Agitation” establishes an entirely new conception of rug cleanliness, by getting not only the surface dirt and lint, but the deeply-embedded, We want you to see this revolutionary new principle in action on your own rugs. 'Our man will gladly call with a Greater Hoover. No obli- gation. Will you callusup? Terms are easy; the down payment small. Only $6.28 down, co Mcwlthdu.' too| mpi ting tools “The Busy Corner” this wonderful new Hoover. clinging, cutting grit. in small monthly payments 9 P«;uua Ave. . 8th & D Sts. Kann’s Has Secured the Exclusive Department Store Sale of “DUCO” in Washington! ElbuPorr pgNi WILMINGTON. 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