Evening Star Newspaper, June 11, 1927, Page 26

DANGER SIGNALS INSTOCK MARKET Shares Rise Despite Evi- aence Boom Has Qut- stripped Business. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, June 11.—The mood of the public is still to buy railroad stocks and a few favorite industrials, although the price list continues t advance and caution concerning specu- lation is being preached in every quar- ter. The market succeeds in rising a lit- tle, day by day and from week to week, on the basis of two or more vears of success, after having passed that point where there is a legitimate relation between current market val- ues and current business conditions and outlook. Until from some unsuspected quar- ter there develops a situation that will focus attention on facts now being ignored it is quite probable that prices may go on rising under the influence of “easy money, the indisposition of -holders of securities to realize their profits and a generally satisfactory state of trade. Market Is at Fantasy Stage. Markets always go much higher than they should in a period of pros- perity and - considerably lower than values warrant when the country is facing depression. We now are in the era of abundance and have been so long that few can direct their imag- ination toward any other prospect than that of continued high records of stocks, bank exchanges, retail sales, pay rolls, gold holdings and foreign credits, 1t is easy in such times to belleve the impossible. Therefore the public is generously treated to all sorts of fantastic stories dealing with railroad mergers and_ contests for railroad con- trol as well as payment of high guarantees on shares of low merit. This Is a normal phase of the kind of market that has been reaching out | further and further to enmesh those who always are drawn into it in its last stages. Danger signs stand out clearly, but the public rushes by. The rapid ex- pansion in loans required to carry com- mitments in stock and undigested bonds is one of them. Loans are now above $3.000,000,000, having increased nearly $600,000,000 in the past 12 months. The natural tendency of these loans is to increase so long as mar- kets remain active and price averages advance, and while the outpouring of new securities is in excess of the de- mand for them. Sooner or later this expansion will result in pressure on the part of the banks, through the Federal Reserve, to shut down on loans for speculative purposes. Bond Market Is Glutted. ‘The congestion in bonds is also an evidence that conditions are not healthy in the security markets. While the volume of new offerings has been ! greater than in any other half year in the country's history, the prices asked for them have been above those ‘which the public is willing to pay. In confirmation of this fact only a rela- tively small proportion of the holders of second liberty 4%s have thus far exchanged for new 33%s. Competition for business among investment bank- ers has been very keen, with both do- mestic and foreign bonds purchased ©on a basis compelling a high retail price in order to give the principals in the trade even a small profit. Underwriters have built up huge _selling organizations in the last few years that must be kept busy, so we have in the bond distributing business a condition of low profits on high gross salesparalleling those in com- mercial lines. Along with this is the tendency to stimulate borrowing by governments, municipalities and cor- porations abroad and by industrial companies at home that may properly be catalogued as poor risks. Reinvestment Demand to Aid. 1t is unusual for the speculative and the investment markets to move in opposite directions as positively as they have this week, when extreme weakness was exhibited in the latter and buoyancy in the former. Between this date and July 1st; there should be a sufficient advance inquiry cover- ing the reinvestment of July 1st funds to take up some of the slack. Banks and corporations are both employing idle money in this market though latterly more in short terms than in long term ' bonds. However, unless the flow of new fssues dimin- ishes materially there will be a poor Summer’s business for the distribu- tor of investment issues. Some of the trade recessions visible this week were more than seasonal. It is to be expected that between April and June, for instance, there should be a sharp decline in the pro- duction of automobiles. The contrac- tion in this period this year, however, has been sharper than usual. On the average, business is about 10 per cent less than a year ago. In the iron and steel trade the shrinkage has been quite prénounced since the end of May, both in pro- duction and in the amount of unfilled orders. The latter decreased over 405,- 000 tons in May and at the end of that month were the smallest for the period in may years. Rubber Prices Break. Prices of rubber after holding steady for z while, have broken down again and are now equal to those prevailing last February. With it there has come a period of price cutting in manufac- tured goods and a slump in the mar- ket values of securities of rubber com- panies. An incident this week that called attention to the struggle that some of,the primary New England industries have been making against new economic forces was the passing of the dividend on American Woolen Co.’s preferred stock after an uninter- rupted record of payment dating back over 25 years. It is true that an extravagant and visionary manage- ment in the decade between 1915 and 1925 had quite as much to do with creating the present situation as did the misfortunes ~2 ¢rade. The season 18 late for planting and harvesting crops and cold weather in most_sections of the country has af- fected retail trade and postponed col- lections. The Winter wheat States will have a considerably reduced crop this year, but fortunately they have had a number of seasons of abundant returns and their peopie are in a strong financial position. In the Northwest, v2re, the yields of wheat have been lower than the average the Jast two years, with railroad earnings and merchandise sales correspondingly affected, the outlook at the present time is satisfactory. In the Mississippi Valley the work of repairi the flood damage is go- ing forward, crops are being planted, homes and roads rebuilt, and meas. ures taken to prevent another tragedy of this sort. This area will show the signs of its sufferings for a long time to come, The Foreign Situation. In the field of foreign politics and finance, the chief incidents of the week were the break between Rumania and Albania. which threatened to involve some of the Balkan states, and the a ssination in Warsaw. Neither incident left any trace on the market for foreign dollar securities, although this market was at the mo- ment in a state where it might. easily have been upset. e e R ‘Wolves go free to prey on stock be- cause they are extremely difficult ani- mals to hunt and are seldom sought upless 4 special inducefnent is offered. ANCIALS Open. High. Low. Close. 9 94 93% 93% 7 7 70 70 137'% 137% 137% 137% 12 12 12 12 Abitibt Pow (5). Abrahm&Straus Adams Exp (6). Adv Rumley. Ahumada (50c). 3 3 8 3 Alr Reductn(16) 172% 172% 170% 170% Ajax Rubber.... 8 8% 8 84 Allled Chem (6). 142 142 141% 142 Allis Chalm (6). 107% 107% 107% 107% Amerada (2).... 32 32 31% 814 Am Agricul Chm Am Bank N (2). Am Beet Sug pf. Am Brake Shoe. Am Brown Bov. Am Br Bo pf (7) Am Can (2). Am Car&Fdy Am Drug (80c). 14% 15 Am Express (6). 137! 137% 137 Am & For Pow.. 234 23% 23% 23% Am&Fo Po pf(7) 100 100 100 100 AmHide&Lpf. 62 62 62 62 Am Ho P (2.40). 39 38% Am Internatl(2) 53% Am La France. . Am Linseed.... 32% Am Linsd pf (1) 72 2% Am Locomot (8) 110% 110% 10¥% 109% Am Loco pf (7). 122% 122% 12 Am Piano (3)... 4% 424 AmPo&Lt (11) 63% 63% 63 Am Radiator(5). 123% [24 123 Am Repubii 59 59% 58 Am Seating(t4). 46% 47 AmShip& Qom. 4% 4% 4% 4% Am Smelting (8) 161's 161% 160'% 161 Am St Fdys (3) 45% 46% 437 46% Am Sugar (5)... 87% 8), 87% 89 Am Sumatra., 524 B2 52 62 Am Tel & Tel(9) 1 168 167 168 | Am Tobacco (8). 135 185 135 135 Am Typ Fdrs(8) 131% 131% 131% 131% Am Typerts.... 10 10 10 10 Am W W (cl 60) 924 92 Am Woolen..... 18 17% Am Woolen pf.. 494 49% Am Writ Pa ctfs 14% 14% Am WrPapfefs dl% 4l% 4 AmZincpf..... 464 46% 46 Anaconda (3)... 45% 45'% 5% Armourof [11 (B] 6% 64 6l Armour 111 pf(7) 68l 634 68 Artloom pf (7).. 112 112 112 Atchison ((i8%) 180% 131% 180% (80% AUCL (183%).. 194 195 194 195 AtIGule& W1.. 89% 391 39% 39% AtlGulf&WIpf. 39 39 39 39 Atl Refining (4). 128% 124% 122% 124% Atlas Powder(4) 67% 67% 67 6T Atlas Pow pt (6) 103's 103% 103 103% Baldwin L (7).. 222% 223 221i 223 Balto &0 (6)... 119% 119% 119% 113% Balto & Oh pf(4) &3 83 82 B2% Bang & Ar (3).. 101'% 101% 995 99% Bang & Ar pf(7) 112 1 112 Barnet Leather. 52 524 52 BarnsdallA(2%) 26% 28 Bayuk Cigars... 71 7l Beacon Oll...... 17% 17% Beech-Nut (13). 52 52 2 Belding Bros (2) 20% 20% 204 20% Bethlehem Steel 50% 50% 49% 49% Bloomingdale... 35 35 35 35 Bkin-Edison (8) 166 165 166 Blkn-Mn Tr (4). 62 62 62 By Man T pf(6). 85% 85% 85% 85% Bkiyn UnGas(5) 114 113 118 114 Brown Shoe (2). 36% 36% 36% 36% Brunswick Ter.. 10% 11 10 11 Buff Roch&P (4) 99% 99% 99 994 Burros Add(t4). 92% 92 92% 92% Bush Terminal.. 60% 61% 60 (153 Bush Trm pf (7) 112% 112% 112% 112% Bush Terde (7). 102t 102% 1024 102% Butte&Super(2). Yl % 9% Byer & Co.. 81 Byers (rights... 2 2w 1% 1% By-Products (2) 84%s 84% 83 834 Calif Packg(4).. 62% 62% 624 624 Calif Petrol(2).. 24's 24% 24% 24% Callahan Zine... 1% 1% 1% 1% Calu & Hecla(2) 15 15% 15% CanDry (t2%). 42 43 42 43 Can Pacific (10). 177 177% 176% 177% Case Threshg(6) 216 215 214 216 Cent Alloy (2).. 29% 20% 28% 29 Century RibM.. 12% 12% 12 12 Cerro dePas(t5) 60 60 60 60 Certain-Teed(4) 54 54 “53% B53% Chand-Cleve.... 9% 9% 9% 9% Chandler pf(23%) 224 22% 224 224 Chi& Alton..... 8 8 Ches & Ohio(10) Ches Corpn Chi & East | Chi Great West, Chi Gt West pf.. Chi Mil & St P.. Chi MI1&StP pf. 26 Chi& Nwn (4).. 88 88% 874 Chi Pne Tool (6) 132 132 130 Chi Rock IS (s,., 109% 109% 108% 109 CRI&Ppf(6). 100 100 100 100 Childs (32.40)... 60% 60% 60% 60 ChileCop (2%). 35% 35% 854 35% Christie B (1.20) 57% 57% 57 57 Chrysler Corp(3) 49% 49% 49% 494 Chrysler pf A(8) 110% 110% 110% 110% City Stores (B). 47 4T% 46% 6% CCC&StL pf(5). 107 107 107 107 Cluett Peab (5). 56% 58 53 58 Coca-Cola (5)... 117% 117% 117% 117% Collins & Atk(4) 102 102% 1014 102 Col Fuel & iron. 87% 87% 86% 87 Col & Southn (3) 128 128 126 125 Col Gas & El (5) 94% 94% 93% 94 Col GRE pf A(8) 106% 106% 106% 106% Col Carbon (4).. 73% 73% 73% 73%a Com Cred (1) 15 15% 15 16 ComCrpfB(2). 19 19 19 19 ComCrpf (1%). 19 19 18% 18% Com Solv B (8). 340 346 33) 843 Com Pow (12%) 5l% 5% 5l% 5l% Congoleum N... 19% 19% 19% 19% Con Cigars (7)., 78% 78% 784 T78% Cong Cigar (4).. 63% 63% 63 63 Consol Distribut 1% 1w 14 14 Consol Gas (5).. 103% 103% 103% 103% Cons Gas pf«(5), 97 9% 97 9% Consol Textile.. 5% 5% 5% 5% Cont Bakg A(4). 36% 36% 35w 35% Cont Baking B. 4% 4% 4k 4y Cont Bak pf (8). 80% 80'% 80% 80% Cont Can (5).... 68% 69% 68'a 69% Cont Insur (6).. 171% 172% 171% 172% Corn Prod(12%) 55 65% 55 55% Cuba CaneSupf 38% 38% 3%% 38% Cuba Compy (3) 29% 29% 28% 28% Cuban Am S (1). 28 23 23 23 Cudahy Pkg (4). 48% 48% 48% 48% Davison Chem.. 30% 30% 30% 30% Deere&Co pf(7). 115 116 115 115 Del & Hud (9).. 222% 222'% 219% 221 Del L& W (7). 169 169 167% 167% DRG Wstpf..., 645 64% 61 61 Detroit Ed (8).. 149% 149% 148% 148Y% Det & Mackinac. 35% 35% 854 35% Diamd Mteh(8). 127 127% 127 127% Dodge Bros Cl A 20% 20% 20% 20's Dodge pf (7). T4k T4l T2% T4% Dupont (19%5).. 243 244 243 244 Duguesne pf (7) 115% 115% 115% 115% Eastman (18)... 146% 116% 146% 146% Eaton Axle (2).. 274 27% 27% 27% Eisenlohr & Bro. 12% 12% 12% 12% El AutoLt(16%) 82% B82% 824 82% Electric Boat. 19 19 18% 18% Elec Power & Lt 22 22 21% 21% EP&LDf 40% (7) 114% 114% 114% 114% Elec Refrigeratn 204% 21% 20% 21 Stge Bat (16) 68 684 68 8% End John (5)... T1% 7% 7% T1% Engineers PubS 274 274 27 27 Engnrs PSpf(7) 104 104 104 104 Equitable pf (7) 175% 175% 1756% 175'% Erle RR. 54 54 53w 63% Erie 1st pf.... 59% 59% 59 594 Erle 2d pf. 58 58 58 58 Erle Stm S(2% 30% 30% 30% 30% Erie Stm Spf(7) 107 107% 107 1074 Eureka Va £14°% 72 2% 72 2% Fed L&T(h1.40) 4% 42 41% 41% Fed Min & Smelt 152'% 152'% 152% 152% Fed Minpf (7).. 94 94 94 94 Fed Mot T(f80c) 23% 23% 23% 234 Fid Phoenix (4). 117 . 117 117 117 Fisk Rubber.... 15% 15% 15% Fisk 1st pfcv(7) 87% 8T% 87% Fisk 1st pf (7).. 96% 96% 96% Flelschmann(3) 55 55% 5d% Foundation (5). 61 61 Fox Film A (4).- 59 59 Freeport Tex(4) 2% 72 Gabrie Sn (2%). % 4 Gardner Motor. . 9% 9% Gen Am Tnk (3) 3% 53% Gen Asphalt, ... % 6% Gen Clgars (4).. 63% 63% 63% Gen Elec (5)... 104% 103 104% GenElec sp(60c) I 1% 1% Gen GasA(01%) 40 39% 394 GenMotors(110) 203% 202% 203% Gen Mot pt (7).. 123% 123% 123% Gen Outdr Ad(2) 4715 46 47 Gen Ry Sig (5).. 108% 108% 108% Gen Refrac (3).. 69 684 68% Gimbel Bros. ... 42 42 42 Glidden........ 13% 18 18% Glidden pr pf(7) 99% 9% 99% Gold Dust...... 57 56% ) 56% Goodrich Ru (4) 54% 54 ' 54% Goodrich pf (7). 102 102 101% 10l% Goodyear pf (7). 112% 112% 112% 112 +Goodyr pr pf(8), 109% }09% 109% 109% 49 42 63% 124 58 47 8 8 1821 182% 181% 182% 5 75 14 4 674 67 18% 18 4% 39% 1% 14% 26% 26 67'% 18% 4% 14% % 44 9 52% 6 THE EVENING STAR, WASHINGTON, D. C., SATURDAY, JUNE I, 1927. NEW YORK STOCK EXCHANGE High. Low. Close. 63% 623 63% 63 63 108% 106% 39% 39 39% 91 91 91 89 89 89 19 19 19 119 119 Open. Gothm S H (2%) 63% Gotham new 23. Gotham H pf(7) Granby (4).. Grt North pf Gt Nor pf cfs(5) Grt Nor O(1%) . Grt Westn Su(8) Gt West S pt (7) Green Canan. Guantanamo. Gulf States (5).. Hapna 1st pf.... Hrtn B b10 %stk. Hoe&CoA..... Hollander & Son Houshld P(33). Houston OIl..... Howe Sound (4). Hud Man (215). Hudson Mo(3%) Hup Mot (1.40). Illinots Cen (7). Indep Q11 (1)... Indian Mot (11) Indian Mot pf(7) Indian Refg ctfs Inland St (215). Inspiration InterboroRapTr. Int Bus Ma (4).. Int Cement (4).. Int Com Eng (2) Int Harv (j6)... Int Mtch pf(3.20 Int Mer Mar pf. Int Nickel (2) Int Paper (2. Int Paper rts. .. Int Paper pf (7). Int Ry Cent Am. Int Tel & Tel (6) Intertype (1%). Jewel Tea...... Jewel Tea pf (1) Jordan Motor... Kan City South. Kayser J (4). Kelly-Spring. Kels Wh pf (7). Kennecott C (5). Keystone T & R. Kresge SS(1.20) Kresge SS pf(8) Kuppenheim(2). Lambert Co (5). Lee Tire & Rub. Lehigh Val(31) Lehn & Fink(3). Lig&MyrsB(f4). Lima Loco (4).. Lig Carb (3.60).. Loew's Ine (2).. Long Bell A (4). Loose-Wil (1.60) Lorillard Co.... Lorillard pf (7). Louisiana Oil. .. La Oil pf (6%).. LoulsGasA(1.75) Mack Trucks (6) Magma Cop (3). Mandel Bros. ... Man El Sup (5). 19% 130% 19 56% 52% 21% 111k 63% 13 45 3% 14's 35% %) May Dept S (4). MaytagCo(t2%) Mexican Seab. . . MidContinent(3) Mid States Ol ct Miller Rub (2).. Minn & St Louis Min St P & SSM. M St P&SSM pf. Mo Kan & Tex Mo K & T pf (6). 10: Missouri Pacific. Missour| Pac pf. Montana Pow(5) Montgmry W(4). Mother L (50¢). Motor Met(3.60) Mullins Body... Mullins B pf (8). Murray Corpn Nash Motor (4). Nat Bellas Hess. NatB Hess pf(7) Nat Biscuit t5% Nat Dairy (3) Nat Dairy (n) Nat Disttllers. Nat Distlllers pf Nat Enamel & S. Nat Lead (5)... Nat Pw&Lt(80c) Nat Surety (10). Nat Surety rts.. Nat Tea (4).. 1 NevadaC(1%).. N Y Air Br (3).. NY Central (7). NY Chi&StL(11) 237 NYC&StL pf(6). 10! NY Dock. NY NH & Hart. ., NYOnt& W (1). Norf & W (8)... NorAm b10% stk North Am pf(3). Nor Am Ed pf(7) North Pac (5)... Northn Cent (4). Norwalk Tir Ofl Well Sup. Oil Well Spt.... Omnibus. S Omnibus pf (8). Opnhm Col (4).. Otis Elevator (6) Otis Steel. ... Otis Stl prior( Owens Bot(Ct5) Pacific Gas (2).. Pac Oil Stubs... Packard (12.90). 57 Pan-Am West B 21 Panhandle...... 10% Paramt-Fam(8) 105% Park & Tilford. Pathe Ex (c3) Patino(1.21 2-3) Peerless Motor. . Penick&Ford (1) Pa DixleCt(8.20) Penna R R (3%) Penn-Seab Steel. Peoples Gas (8). 142% Pere Marq (18). 132 Pere M prior (5) 96% PhilaCo6%pf(3) 51% Phila&RC&I. 4l Phillips Pet (3). Pierce-Arrow. .. Plerce-Ar pf(8). Plerce Oil. ... Plerce Petrolm Pitts Co: Pitts Coal of. PittsTerm Coal. Pitts & W Va(6) Postum (5)..... Pressed Stl Car. Pr Stl Car pf(7). Prod & Refiners. Pub Serv NJ (2) Pub SE Ro pf(7) Pub SE&G pf(6) Pullman Co (8). Punta Aleg Sug. Pure Oll (12)... Radio Corp of A, Ray Copper (25¢ Reading (15)... Real Silk Hos(4) Reid Ice Crm(3) Rem-Rand $1.60. Rem-Rd 15(7). Rep I & Stl (4). Reynolds Spngs. Rey Tobac B (5) Rossla Ins (6). . Royl D(a1.33%) Rutland pt. Safety Cable (4) St L&San F(18). St L Southwest. Schulte (3%). Seabd Alr Line. Seab Alr L pf. Sears-R (n2%). Seneca Copper. . Shattuck F G (2) Shattuck rts. ... Shell Un (1.40).. Shubert The (5). Simmons (2).... Sinclair Oil. .. Skelly Oil (2)... Snider Packg Co South Port S (8) SPortoR Sug(n). South Porto % % 142y 142% 132% 132 96 96% 51% 51% 42% 41 43% 43 15% 1t L06% 106% 185% 185w 15 i20% L18% 30% 30% 467% * 46%4 1374 1374 9Th 9T 9 4 62 62 68l 68% 114% 113% 8% 1T 6215 524 364 35% 39% 39% 57 57 3% 3% Td% 3% 102% 102% 2T 2T% 68% 114y 8 524 36% 39% 57% Y T4% South Dairfes A. Sou Dairles B. 8% 8% 8 8l South Pac (6)..0 114% 116 : 114k 114% . Received by Private Wire Direct to The Star Office. . Low.11:50. 127% 127% 124 124 107 26'% 109% 61% 85 Open. H; Southern Ry (7). 128 Sloss-Shef (6).. 124 Spaulding p£(7). 107 26% StdOilCal(12%). Std OILNJ(t1%) Std Oil NY(1.60) Std Plate Glass. Std Pl Glass pf.. Streling Pro(6) Stewart-War (6) Stromb Car (2). Studebaker (5).. Submarine Boat. Sun Ol1 (1). Superlor Oil Tenn Copper (1) Texas Corpn (3) Tex Gulf Sul (4) Tex & Pacific. .. Tex PC&O(60c). Tex Land Trst n The Fair (2.40). Tide Wat O(80c) Timk Roll B(¥5) Tobac Prod (7). Tobac Prod A (7} Transcont Oil... Underwood (4). Un Bag & Paper. Union Carb (6)., Un Pacific (10).. Un Pacific pt(4). Utd Dyewood. . . Utd Fruit(t5%) USCIP&F(10) U S Dist cfs new US Dist pf n(7). U S Hoffman (4) S Aleohol (5) S Rubber. ba% 37 30% 4 U U u U S Steel U S Steel pf (7). Univ P&R(12%) Utl P&Lt A (e2) Vanadium (3) Vick Chemical. . Victor Tlk Mch. Victor pr pf (7). Vivadou (3).... Vulcan Detin. .. Wabash. . Wabash pf A(5) Ward Baking B. ‘Ward Bak pf (7) Warner Pic A. .. WarF&Pipe Cor. Weber (4)...... W Penn EIA(7). W Penn El pf(7) West P Po (6).. West P Po pf(7) West Maryland West Md 2d pf.. West Paciflc. ... West Union (8). WesthseAirB(7) Westinghse (4). Weston Electric While Mot 14).. White Rock (2). White Sew M(4) White Sew Mach Willys-Overland Willys Od pf (7) Wilson Co pf A Wison & Co pf.. Woolworth (5).. Wérthn Bump. .. Wright Aero (1) Wrigley (+3%). Yale&Towne(5). Yellow Truck. .. YungstnS&T(5) ST 87% Dividend rates as ziven In the above table are the annual cash pavments based on the latest quarterly or half vearly declarations. Unless otherwise nuted extra or svecial divi- dends are not included. * Uni stock a Paid this vear—no n per cent i o cash . e Plus 1/50 b Plus $1 a share in special 6% in stock. | Plus 2% In le 1/40 of a share quarterly ock " m Plus in stock. B Plus S5 in orelerred siock of common stock. . BANKERS URGED TO AID JAPANESE SHIPYARD Dock Yard Company’s Assets Cut to $75,000,000 in Recent Crisis. Correspondence of The Star and the Chicag. Daily News. TOKIO.—Though the total as- sets of the Kawasaki Dock Yard Co., which was seriously involved in the recent Japanese bank crisis, were abeve $250,000,000, because of the pres- ent situation the company’s assets are valued at not more than $75,- 000,000, This is the finding resulting from the investigation of the Japanese Navy Department into the general business condition of the Kawasaki interests, as announced by the Tokio newspaper, Asahi Shimbun. The authorities say that as matters now stand the only way to rescue the company is to transfer the majority of its stock to the Mitsui, or other big banking institution. The Mitsui peo- ple, however, are disinclined to as- sume the responsibilities of the busi- ness in view of the irregular circum- stances surrounding the Kawasaki company. Nevertheless, the govern- ment officlals are endeavoring to in- duce the Mitsuis to take over the shipbuilding saction of the Kawasakis. i HIGHER MONEY LIKELY. NEW YORK, June 11 (#).—Higher call money rates are regarded as likely next week because of the heavy shifting funds incidental to Federal income tax payments, Gov- srnment financing and the usual mid- month interest and dividend paye ments. While the gold and reserve position would seem to warrant a reduction in the New York KFederal Reserve Bank, such action is re- garded by conservative bankers as unlikely at the present time because of the resultant danger of inflation, particularly in securities prices. I T. & T. BARNINGS. NEW YORK, June 11 (#).—First quarter earnings of International Telephone and Telegraph Corporation and associated companies totaled $2,- 742,597, more than double the figure for the same period of 1926 when the figure was $1,321,245. The earn- ings for the quarter were equivalent to $2.95 a share on the common stock. EXCHANGE WILL CLOSE. BALTIMORE, June 11 (Special).— The governing committee of the Balti- more Stock Exchange has voted to close mext Monday in honor of Charles Lindbergh, aviator, who will be ac- corded an ovation on that day in New York. As many of the members of the local ®rganiaztion intend to be in New York on Monday, and the indica- tions were that attendance on the board would be slim, the governing committee decided that it would be just as well to observe the day as a holiday, and accordingly voted to close. . EATON AXLE OUTLOOK. NEW YORK, June 11 (#).—Busi- ness of Eaton Axle & Spring up to April 30 was ahead of the same period last year and has continued on a large scale since, Chairman Ecton re- ports. The company has earned sur- plus_sufficient to maintain dividends for 2% years, he said. AT DIVIDEND RAISED. NEW YORK, June 11_(#).—DI- rectors of ,Financial & Industries Corporation declared a quarterly divi- dend of 75 cents a share on the com- mon stock, raising the annual rate from $2 to 83. An extra dividend of 35 cents a share on the common also was authorized. ? . SUPPLIES ARE 00D IN MARKET TODAY Fish Trade Heavy—Straw- berry Season Is Nearly Ended. Shad and herring, two popular vari- eties of fish, no longer are to be found in Municipal Fish Market, the 10.day period permitted dealers in which to get rid of supplies they had on hand the last day of May, close of the 1927 season, having terminated yesterday. Taking of the two varieties of fish from the market will mean increased demands for other varieties, and con- sumers will reap the benefit, other fish being much cheaper than the shad. * £ Dealers report only a fair season for the shad and herring. Bach year, it is stated, catches of the two vari- eeties show a decline in the number in evidence, and dealers fear they may become scarce the next few years,” It is believed by certain dealers that the presence of so many trap nets in Chesapeake Bay and the Potomac River during early Spring has an im- portant bearing upon the fish. : “Such nets,” remarked a dealer this morning, “take up fish of all sizes and make it impossible for them to get a fair chance. “Reduction of the number of such » he added, “should prove bene- to the fish.” Variety of Offerings. Municipal Fish Market this week had a splendid variety of offerings to the trade, and the cheap prices of several varieties of fish, it is stated, largely assisted in reducing the cost of liying and proved ideal food for warmer weather consumption. Very little advance has been made in the matter of catching crabs in the lower Potomac and Chesapeake Bay. One reason given for the scarcity of crabs is the fact that many crabbers are still employed picking berries and carly green vegetables, finding such work easier and more remunerative rabbing. tha;‘r;v(l: hard gand soft crabs and quan- tities of crabmeat have been received from various points, much of the meat coming from Mississippi packers. The few hard crabs received by dealers the past week were quoted at $15 a bar- rel, while soft crabs were offered ’.04 day at $2.50 a dozen. White meat was quoted at 75 and dark meat at 50 cents a pound. Some Species Are Cheap. Trout, butterfish and spots sold as low as b cents a pound the past week. an exceptionally low price. Croakers were offered at 6 and Boston mackerel at 10 cents. Rockfish continued scarce and high, dealers quoting a price of 35 cents a pound for them. Dealers are offering trout roe to the trade at 30 cents a pound. Most of the roe offered in the local market comes from Buckroe Beach, Va., and is received in splendid condition. It is reported by dealers to equal the shad roe as a food product. Boston mackerel roe is said to furnish an at- tractive dinner dish, but only small quantities of it are to be had of dealers. Spring chickens, always in demand in season, are being received in large quantities, and dealers believe many of the extra heavy shipments were sent because of the increased demand expected to be made to feed the visit- ing throngs today. Lower prices for all varieties of poultry were recorded the past week. A firmer condition of the egg market was reported this morning, current receipts, 21 and 211 cents the past week or 10 days, increased to 22 cents. It is the belief of dealers that further advances will be made the coming week, the decided change in temperature probably affecting supplies. Candling Losses Soon. Candling losses are expected to be- come heavy as soon as several days' hot weather has been experienced. Hens will lay eggs in the open, a dealer remarked, and it requires but a short time for the sun to spoil them. Such eggs are gathered by some farmers and sold with the good ones and it is the loss of such eggs that decreases the supply and means losses to_dealers. - Very little changes in meat prices were reported during the week. Top meat was in good demand at prevail- g prices this morning, according to dealers, rough cuts finding slow sale. Sales of beef, veal and lamb were fairly brisk. Top .quality lambs, and not many of such quality are being received, according to reports, were quoted at 15 cents, while the top price of calves was 113; cents. Strawberries, in market much longer this season than usual, due to the ‘continued cool weather, soon will be out of season. There are still some berries being offered, but many of them are culls, the last of the picking, and the price depends en- tirely upon the quality of the fruit. Blackberries, raspberries, cherries and peaches are among the new arrivals in the fruit market. North Carolina Peaches. North Carolina growers are send- ing some exceptionally attractive peaches to the local market, bushel baskets selling at from $2.25 to $4.50. Supplies of apples are light and de- mand fairly good. Moderate supplies of watermelons and cantaloupes are being received, the former from Florida and the latter from California. Watermelons were quoted at from 55 to 90 cents, few bringing $1, while the canta- loupes, received in _refrigerating cars, were quoted at from $1.50 to $4.50. ¢ Dealers had attractive offerings of all kinds of vegetables this morning, some home-grown and some from distant places. Mississippi tomatoes, said by dealers to be especially at- tractive, ranged from $1 to $1.30, few higher. A falr demand for moderate supplies of potatpes resulted in a weaker mar- ket. New stock from North Carolina and Virginia sold at $9, $9.50 and $10, ;\;hsl:)e old stock from Maine sold at String and stringless beans from North Carolina and Virginia are sup- plying the market, while nearby deal- ers are supplying peas. Home-grown cabbage are supplying the local trade. Included in the long list of other vegetables dealers had to offer the trade were onions, lettuce, asparagus, beets, carrots, celery, corn, cucum- bers, eggplants, peppers, spinach and squash. Because of the anticipated traffic congestion, retailers were on hand earlier than usual to get first pick of commodities, and prices were substan- tially the same as prices quoted yes- terday. Today's Wholesale Prices. utter—Fresh, 1-pound prints, 45a ; tub, 43%4; store packed, 26. Eggs—Fresh selected, 24a25; hen- nery, 25; current receipts, 21%a22. Poultry, alive—Turkeys, hens, 25; old toms, 25; fowls, 27; Spring chickens, 36a38; roosters, 15a16; ducks, 15; keats, young, 65: old, 20a35. Dressed — Turkeys, 28a30; Spring chickens, 43a45; capons, fancy heavy, 38a40; smaller, 35; ducks, 20a35; keats, young, 60a70; old, 28a30. Meat, fresh killed—Beef, 18a19; veal, 18a20; lamb, 30a32; fresh hams, 23425; shoulders, 18a20; loins, 26a28; smoked hams, 26; smoked shouldersg, net ficial 45 18a20. g7 choice, 1134; EVERYMAN’S INVESTMENTS BY GEORGE T. HUGHES. Safety Element in Insurance. Before we learn the subject there are a few things to be said about life insurance. In the first place it is safe as far as any human institution can be #afe. There is no way of predicting the time of any one in- dividual's death, but the averages make no mistake. T: e insurance company sets aside a sum sufficient to care for a policy when it matures on the basis of these averages. Per- haps that is not the way the actuary, the expert who attends to the neces- sary computations, would put it, but it is near enough for the man in the street. An insurance policy fulfills its pri- mary purpose of protection infallibly. In the second place the insurance com- pany invests its funds more skillfully than any other financial institution and I do not even except banks. On this point I can speak authoritative- ly. The men who buy the bonds for the insurance companies are the best Judges of values in the business. When you add to this the fact that the enormous sums the larger insur- ance companies have to invest make the widest kind of diversification pos- sible it is easy to see why there is no risk attached to insurance as far as security of capital is concerned. Thirdly, insurance has stood the test of time. In the investment business we judge securities in large measure on their record over:a period of years 1nd applying this rule to insurance the result inspires entire confidence. 1 suppose all my readers except pos- sibly the insurance experts who can pick technical flaws, will agree with the argument so far. Yet is is just as probable that not one in a hundred will take any action on his own ac- count unless some insurance agent gives him the initiative. I am well aware that a good many of these agents are unpleasantly aggres- sive and sometimes excessively annoy- ing. Stil they seem to occupy a place in the economic order that no one else can take. S. A. L. GETS LINK ROAD. Acquires Georgia, Florida & Ala- bama Railway Through Lease. BALTIMORE, June 11.—S. Davies Warfleld, president of the Seaboard Air Line Railway, has announced the acquisition of the Georgia, Florida & Alabama Railway, subject to the ap- proval of the Interstate Commerce Commission. This line is approxi- mately 191 miles long, and runs from Richland, Ga., a point on the Savan- nah-Montgomery line of the Seaboard railway, connecting with fhe Sea- board’s’ Jacksonville-River "Junction line, which it crosses at Tallahassee, the capital of Florida, thence to Carrabelle, Fla. on the Gulf of Mexico. Mr. Warfleld said that the Seaboard had leased this railroad for 99 years at an annual rental, and that the road would become an integral part of the Seahoard system. : The gross revenue of the Georgia. Florida and Alabama Railway for the year 1926, he stated, was approxi- mately $1.500,000, and that it operated in a territory that promises great de- velopment. COAL MERGER RUMORED. Taplin Interests Reported Buying Stock of Pittsburgh Company. Special Dispatch to The Star. BALTIMORE, June 11.—Acquisition of a substantial stock ownership in the Pittsburgh Coal Co. by the Taplin interests is believed to be the initial step in a gigantic combination of bituminous properties here. The Consolidation (‘\onl Co. of Balti- more now the biggest producer of bituminous in the world, and the Elk Horn Coal Corporation closely allied with the first named company, were largely financed by residents of this city and tHey play important roles in the direction of the affairs of those enterprises. o Have You Been 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! HAS NEW STATION. NEW ORLEANS, June 11 (Special). —The Tropical Radio & Telegraph Co., owned by the United Fruit Co., has completed a new receiving station here which picks up messages from ships and South American countries. Its transmitting station is 3 miles away. The equipment will be as com- plete as any in the country. COMMODITY NEWS WIRED STAR FROM ENTIRE COUNTRY CLEVELAND, June 11.—Peerless production is approaching 100 cars a day. The Jordan factory is working at a high Tate and President Edward St Jordan, who has just returned from the South, says the outlook there is 500d despite the flood. LOWELL, Mass.—The Pepperell Manufacturing Co. is re-styling produc- tion of the local plant with a view to the production of celanese voile, an artificial silk mixture adapted for dress goods and draperies. INDEPENDENCE, Mo.—Prospects for a big apple crop in Jackson County have declined 50 per cent in the last fortnight. Heavy rains prevented pollination and the fruit is dropping. ATLANTA. ~— Arrangements are being made by Southern railroads and steamship lines for fast transportation of Georgia dairy products to Havana. Contracts have been announced aggre- gating 25,000 gallons of milk daily. YOUNGSTOWN.—Iron output in the Mahoning Valley now is at about 65 per cent of capacity with the re- sumptlon of the Hubbard stack of the Youngstown Sheet & Tube Co. Twenty- four of the 39 blast furnaces now are active. . DIVIDENDS. Pe- Pay- Hidrs. of Rate. riod. able. ~ Recor Auburn Auto. 1Q July Beatrico Crm: . pf. 1 Canadian ‘Com “Cot- ton Mills 8% pf. Canada Bread pf. 4 Chicago Sl e FE e 2t AT n G ZRE June 3. June 20 June 20 June 10 June 10 1 June 23 June 1 bacco 2 Torrington Wi ¢ thtll Co Live stock—Calves, medium, 8a10; thin, Spring Jambs, 14216, . 7a8; ANERCANCANED LEADERINSTOS Market Fairly Steady at Be- ginning of Brief Saturday Session. By the Associated Press. NEW YORK, June 11.—Stock prices opened fairly steady at the opening of today's stock market.| American Can quickly mounted to a new high level for the year and slight initial gains were recorded by U. S. Rubber, Marine preferred and Chesapeake & Ohio, Pittsburgh Coal was heavy, presumably on the announcement of a new stock issue, and U. S. Steel common yielded slightly on the opening sale. Irregularity developed soon ofter the opening, due to the usual week end shifting accounts, but the major trend appeared to be upward. Many pro- fessional traders were absent to take advantage of a triple holiday, as the Zxchange will be closed on Monday for the Lindbergh celebration. Ameri- can Brown Boverl sank to a new low level for the year, Pierce-Arrow quick- ly sold down 3 points, Houston Oil 2, and Western Marylahd, Air Reduction and “Soo” preferred yielded a point or more. On the other hand, Mullins Body rose to a new high, Lackawanna was bid up 3 points, Continental Insur- ance 2%, and Rock Island, Atlantic Coast Line, Illinois Central, Radio Corporation and Texas Gulf Sulphur a point or more, the last’ named changing hands in large volume. For- eign exchanges opened steady., with demand sterling around 4.855-16 and Frepch francs around 3.91% cents. Markets at a Glance NEW YORK, (#).—Stocks. heavy; merger rails yield to selling pressure. Bonds. steady; week's new offerings of 250,000,000 restrict trading. For- eilgn exchanges.- irregular; Spanish pesetas drop 9 points. Cotton. steady, pending drought developments. Sugar, holiday. Coffee, holiday. ——— TAILORS MAKE CONTRACT. Fashionable Firm Agrees to Clothe on Annual Basis. LONDON, May 11 (#).—A firm of Savilerow taflors has prepared a schedule of prices for dressing men in the latest London modes by yearly contract. The customer pays a stated amount for the year and takes his choice of the tailors’ materials when garments are required. Dressing by contract is not new as far as English society women are con- cerned. The better London dress- makers adopted this plan some years ago. It is not unusual for prominent soclety women to pay. large sums yearly on the understanding that in return they shall have all the clothes they want. PINOTORTAN AUBURN AUTO STATUS. NEW YORK, June 11 (P).— Net earnings of Auburn Automobile Co. for the five ménths this year have been most satisfactory, President Cord says, closely approximating to- tal earnings for 1926. The company had more than $2,800,000 cash on hand and no bank indebtedness on May 31. The regular quarterly divi- dend of $1 was declared. SILVER QUOTATIONS. NEW YORK, June 1 (#).—Bar sil- ver, 57; Mexican dollars, 43 NEW YORK MARKETS. NEW YORK, June 11 (#).—Flour, firm; Spring patents, 7.60a8.00; soft Winter straights, 6.75a7.10: hard Win- ter straights, 7.50a7.85. Rye steady; No. 2 Western, 1.31 f. o. b. New York and 1.29% c. i. f. export. ' Bar- ley barely steady; malting, 46 pounds, 109% c. i. £. New York, lake and rail. Lard, firmer; Middle West, 13.20a13.30. ‘Wheat, futures opened steady; domes- tic, July 1.48% bid. Other articles unchanged. MONEY TO LOAN First and Second Mortzuzes PAUL D. CRANDALL Investment Bldg. Room_611 Main_8799 LOANS on RESIDENCES APARTMENT HOUSES BUSINESS PROPERTIES In Washington or Neardy Maryland, in Large or Small amounts at 5% WM. H. SAUNDERS CO., INC. 1433 K St. N.W. Main 1016-17 Loan Correspondent Provident Mutual Life Insurance Company TRUST NOTES - On Hand Bearing 614 % and 7% Interest In Amounts of $250.00 up See WELCH, 15th St. and New York Ave. in 4346 lished 1 investor in 27 A successful local mer- cantile concern, requir- ing additional capital to expand the business, of- fers to sell a limited amount - of stock. For personal interview ll Address Box 36-A e e e e e S i REAL ESTATE LOANS BUSINESS. APARTMENT. CAURCH. HOTEL THEATER. RESIDENCE AND GARAGE PROPERTY. CONSTRUCTION LOANS. FRED T. NESBIT 1010 Vermont Ave. Maln 9302 BUILDING LOANS| For Individual Owners 5% % Glover & Flathe: 1508 H Street N.W. Washington, D. C. Main 1753 Prompt Action First Mortgage Loans Lowest Rates of Interest and Commissiol Thomas J. Fisher & Company, Inc. N Investment’s worth is determined by its absolute safety and as- sured annual return. Our FIRST MORTGAGE SECURITIES 1435 K Street Main 2345 In Nearby Virginia, 5 1/2 % Prudential Commonwealth Investment Co. 917 15th §t. N.W. Phone Maln 2623 Potomac Electric Power 5% % Preferred Stock Series 1927 Bought—Sold—Quoted (fpmate = [svvesTvent Bankers WOODWARD BUILDING WASHINGTON, D. C. Main 9129 FIRST safe A Third of a Century Without a Loss B. F. Main 2100 SURROUNDED BY SAFEGUARDS Improved Washington proper- ties, carefully selected and con- servatively appraised, form the security which is back of our 6% FIRST MORTGAGES Furthermore, these mortgages are surrounded by every possible safeguard that our third of a century’s experience has proven negessary for the full protection of our investors. SAUL CO. THERE IS NO SUBSTITUTE FOR S\FETY MORTGAGES 925 15th St. N.W.