Evening Star Newspaper, November 29, 1928, Page 15

FINANCIXE. D. C., THURSDAY, NOVEMBER 29, 1928 later than Sunday day in order to get suj time to be handled by FINANCIAL. THE EVENING STAR, WASHINGTON, BIG THREAD FORTUNE TRACED al deaters. || SAFE FIRST AP TRANSTNET REVEALS BOOD AN Increase of 59,952 Fares During October Sends Earn- ings Up Nearly $10,000.. BY EDWARD C. STONE. According to the monthly report of the Washington Rapid Transit Co., just filed with the Public Utilities Com- mission, the bus lines had an increase in receipts over the corresponding month last year of more than $9,000. Total operating revenues amounted to 349,637, compared with $42,507 a year ago, an increase of $7,129. Op- Ta expenses claimed $45,976, against .’ in 1927, leaving total net rev- enues from operations of $3,660, in com- parison with a deficit last year of $6,231, or an improvement of $9,891.32. The company's total income was $2.948.65 against a deficit in October last year of $6,940.62, leaving a gain in net earnings for the month under re- view of $9,889.27. ‘The transit company reported that the number of revenue passengers car- ! ried in October totaled 475,878, against 415,926 in October of last year, a gain in passenger traffic of 59,952 fares. Reserve Board Credit Increasing. Continuation of industrial activity and larger volume of production, with a sharp decline in wholesale prices, is inted out by the Federal Reserve rd in its monthly review. Member bank credit continues to increase, with little change in reserve credit out- standing. Industrial production is maintained at the high level of September and well above the corresponding period in 1927. Pactory employment and pay rolls are at highest point since early 1927, and output of pig iron and steel continues ‘at & high level. Building contracts con- tinued to increase in October. The board points out there was con- siderable increase in total of loans and investments of member banks in lead- ing cities in early November, but total is still below that at midyear. Loans chiefly for commercial purposes re- mained at high level, with loans on securities increasing, while investments showed further decline. I A. Fleming 78 Years Old Today. I. A. Fleming is 78 years old today. The dean of Washington financial writers is passing the event quietly at his home, 2700 Connecticut avenue northwest. It looks as if “Pop” must have had some arrangement with Presi- dent Coolidge in d to a double we. ) this, however, insisting that he had planned to observe his birthday on the 29th long before the Thanksgiving proclamation was written. » Mr. Fleming is still as strong men- tally as he ever was. For more than 80 years he has been writing financial news and comment, a most remarkable span of journalistic activity. He started his career as & boy of 15 or 16 on the Chicago Board of Trade handling grain quotations. That led him into news- paper work. Years later he owned a *When congratuiated ai his home to en al - day, “Pop,” a8 he is best known, an- By the Associated Press. PAISLEY, Scotland, November 29.— The death recently of Willlam Hodge Coats of J. & P. Coats, thread manu- facturers for the world, has called at- tention to the shawl which made 11 multimillionaires and to the business policy which built up a fortune of $500,000,000. ‘The story starts 126 years ago, when a young bridegroom, James Coats, went up to London to buy his bride a shawl. It was a Canton shawl with a subtle crepe weave, and it so pleased Mrs. Coats and other Paisley women they decided that if they could make shawls like it they would win a fortune. So | the firm of J. & P. Coats was born. ; Take Town by Storm. Canton shawls made in Paisley took the little town by storm. They sold faster than they could be made. “Ye dinna weave 'em quick enough, Jimmie,” sald Mrs, Coats. “Can ye not spin the thread as well?” So the thread factory was started. Success made the firm's name known not only in Scotland and England, but in the far parts of the earth. One day a rusto{m}:‘: asked xé!’nmcs Coats the secret of prosperity. i “Choose one line and stick to it,” re- plied he. § Sir James Coats, second titled mem- TO BRIDE'S LOVE FOR SHAWL ber of the family, captured the Amer- ican market for his organiaztion. “Don't you know there is a civil war being fought over there?” a business as- sociate asked him. “The very time to sell 'em thread!” retorted Sir James. When Sir James reached the United States he learned the high protective tariff on thread would cramp his busi- ness operations. An assoclate suggested asking the British government to re- taliate. Establishes Mills. “Not at all,” said Sir James. build my factories right here.” He established the first at Pawtucket, R. I, and then set up one mill after another in the heart of the New Eng- land textile region. Canada was the next country he conquered, and for 31 years he stayed on the North American continent to look after.his business. When he re- turned to Scotland he reorganized the parent firm into a limited liability or- ganization. Dividends rose from 8 per cent in 1890 to 50 per cent in 1899- 1900. In 1905 the capitalization of the company had reached $200,000,000. The wills of nine members of the Coats family have been probated for a total of $131,289,830. William Hodge Coats left $35,000,000. “I shall BY KENNETH S. VAN STRUM. NEW YORK, November 29.—When industrial stocks scramble upward un- der a terrific volume of trading many conservative investors quletly turn to railroad stocks. No group of stocks en- { joys a larger following of permanent in- vestors. features of the market. Railroad kings struggled for control of the key sys- tems. The scramble for the stocks cf one system led to the classi> Northern Pacific corner in 1901. About this time commodity prices had risen high enough so that people were crying out against the high cost of living. It was the common belief at the time that the chief causes were the n and the railroads. It was thought that the carriers were making tremendous profits and that the high cost of transportation was the chief cause of high living costs. Political parties capitalized upon the public resentment against the railroads. In the meantime the railroads had nounced the call of the Southland is|been again too strong to be L, He leaves here Saturday for Miami, where he will spend a rew days and then re- turn to his old haunts at Melbourne, there to enjoy another Florida Winter, North American’s Standing. The consolidated balance sheet of the North American OCo. and subsidiaries, attacked on another front, Never before since they had become an im- portant factor in business had they en- countered the problem of rapidly rising costs of tion. Up to this time the cost of doing business had fallen stead- ily. And since railroad rates were quite m“fl; year there was s wider margin between expenses and income. It was a relatively simple matter to make money when the price of the as of September 30, made public this 'week, shows some interesting compari- The figures: sons. ool !I! 1285088 11,687, 1,400 7,190,975 Prop & pit D with tr. vestments s . . A1t 87,838 3,167 i Te i SUST SARS Trust Departments Spreading. ‘The national banks of the country are adding trust .:cp-runmu at s lively 3 the m“;uer John W. Pole. In addition to the banking resources of the com- mercial departments reported on Oc. tober 3, 1928, 1,585 national banks we: admin! through their trust d gnmnn!l 53,853 individual trusts, with dividual trust of $3,297,310,000. These banks were also administering 9,923 corporate trusts and acting as trustees for collatersl trust and other bond and note issues aggregating § 978,389,000. ‘This represents an increase of 203 in the number of national banks admin- istering trusts over 1927, an increase of 18,193 in the total number of trusts being administered, an increase of $1,217,452,000 in the assets of individual trusts, and an increase of $1,623,676,~ 000 in the bond and note issues out- standing for which they were acting as trustees. Parades Hurt Business. NEW YORK, November 29 (#.— ‘Welcoming parades for popular heroes have the same depressing effect as rain upon sales, New York department store proprietors say. Thousands of lhoppeg AR who enter the stores to buy, rush the strest when they hear the bands and cheers and in the post-parade ex- eitement forget to make their intended purchases. One large department store estimates such losses at $40,000 to X 000 each parads I Commodity Notes I Cotton. NEW ORLEANS, November 29.—The decision of the New Orleans Cotton Exchange to make 50 bales the unit of trading in cotton futures, it is felt will prove helpful to the smaller mill own- ers and farmers in the South. The scheme has been on trial for six months and has proved successful. Automobiles. CHESTER, Pa.—The steamer Oneida | 5 of the Ford fleet has just been loaded here with unassembled Ford cars. This is the first shipment from the Chester plant to Buenos Aires, Live Stock. CHICAGO.—S8hipments of stocker and feeder cattle into the corn belt in the last month have been about as nu- merous as during the corresponding pe- riod last year, but prices have been pearly 20 per cent higher. Coal. HAZLETON, Pa.—There was no lack of Thanksgiving cheer in the miners' homes in anthracite fleld today. The coal companies {nroxlmou $1 pay Wednesday. now are distributing ap- 2,000,000 each fortnight and the men were paid off ——— State of New York is now aid to continuation schools as to elementary and high 'l‘h:m an &l schools. product stationary while the cost of the product fell. ‘The now, however, were fac- ing & period in “which prices rose as rapidly as they had fallen during the %usmr century. By 1908-1909 heir profits had begun to suffer and from that day until the final deflation in commodity prices in 1920 and 1921 n“urond stocks declined steadily value. In spite of the operating difficulties, nubur.mlnflmluon against the ralls continued. During the war the Gov- ernment actuglly assumed the manage- ment of the roads, and when they were again returned to private owners, a law was passed fixing the maximum rate of return which they might earn. Railroads labored under the load as best they could until in 1921 tech- nological improvements in railroad ‘operation, combined with a stable price level, so changed the earning prospects that the price of railroad securities rose L y. ‘Today the rails can hardly be con- sidered speculative stocks. In the last few days they have reached new h levels, and it is a question how far the advance will continue. The experience of the past few years would seem to indicate that a broad upward movement i railroad stocks is improbable until the prices of railroad bonds rise sharply. In the past such a development re- quired, as an accompanying factor, easier conditions in-the money market. (Copyright, 1928.) . Opel Is German Ford. RUEDESHEIM AN RHEIN, Germany, November 29 (#).—Adam Opel, leading German producer of automobiles, is ex- to build about half .the German 928 output of 85,000 motor vehicles. Rate of production in the Opel plant is about 125 cars a day. Opel was the first firm to attempt mass production, inaugurating the system after officials had visited American plants and equip- ped the Opel factory with American machinery and tools. Wall Street Br: Earnings of the Tide Water Oil Co. of New York increasea to $7,793,000 in the first 10 months of 1928 from $2,- 622,000 in the first 10 months of 1927. October earnings were $1,990,000, com- pared to $129,000 in October. 1927. Atlantic, Gulf & West Indies Steam- ship Lines of New York and subsidiaries reports net income of $533,843 for the nine months ended September 30. equal to 9 cents a share on 199,512 no par common shares outstanding. This com- months of 1927. Net loss for the third quarter was $183,478, against net in- come of $36,610 in the third quarter of In years past the rafls used 1o be the | o7 Gross revenues he Missouri, Kansas & Texas Railroad for the past 10 months was $46,429.491, compared to $46,874,922 in the corresponding 1927 period. Net :)x;c‘ume was $5,876,986, against §$4,942,- ‘Wall Street has heard that a mnew company, known as Aktiengesellschaft Fur Ferngas, has been organized in Germany to construct and operate fplants for transforming solid fuel into other types of energy and to sell the product. Distribution will be by long- distance lines. Steel prices are easier, but the decline in production has been checked, Iron Age remcru. ‘With the general trend of specifications downward as the year end approaches, releases by the auto- mobile industry continue to act as an offsetting influence. Construction work l'lzglnurold cars are also taking more steel, ‘The Iron Age composite price for pig iron has advanced from $18.54 to $18.59 a ton. The finished steel composite has declined from 2.369 cents to 2.362 cents a pound. NEW ENGLANb IS FIRST IN SAVINGS DEPOSITS By the Associated Press. BOSTON, November 29.—In per capita savings, New England is more than 15 years ahead of the United States as a whole, statistics affered by the Boston Chamber of Commerce in- dicate. % K Charts prepared by the. Bureau of Commercial and Industrial Affairs show the outstanding position of this region in _savings. it In 1912 the average deposit per per- son in New England was $246, while in the United States as & whole it was but $88. In 1927 the figures had in- creased to $524 in New England and $220 in the United States. The aver- in |8ge for the Nation in 1927, therefore, lwbll‘l behind that of New England in Actual savings deposits in banks in- creased from $1,659,574,000 in 1912 to $4,201,506,000 in 1927. AIR, RAIL, ROAD LINES IN CO-ORDINATED WORK By the Assoclated Press. NWNWMYORMOWFMI 20.—A lcu- . 8} of transportation, with the train, trolley, mowrp%un and lane each supplying the service for which it best is adapted, is seen as a possibility in" this country. Inherent qualities of each seem to make co-operation rather than compe- tion a necessity. Raliroads, enlightened by the error made in deprecating the motor bus when it was a novelty, already have ac« cepted the airplane as an auxiliary, finding it best suited for fast light trave el over long distances. Z Both railroads ‘and trolleys have adopted the motor bus as a means of pro service on “feeder” lines or for replacement where patronage is too light for paying operation of train or ;l:g't‘rln car, especially in “short-haul” Hundreds of airplanes now are in daily operation on 34 established routes for passenger, package and mail trans- rtation, covering a dally average dis- ce of 32,000 miles, ‘The number: of motor busses is es- timated to have grown to 86,000 from the 20,000 in operation in 1922, with some 22,000 companies carrying more DIVIDENDS. Regular, e Pl Bl Mdrs. ot 142 @ Dec Aolied, Rt : g fot Fnp g B Somm SERELBIIEE RS0 1 1i 1 : 1 , 1 . 3| 3 1 1 i 1 1 i 3 9 9 | A 3 3 0 1 . Bl Hercules ‘Powder .. onoluly_Cons Oil.50c Q Iliinols"Bell Tel 52 Tliin 'Y raieaets g BuSEEeRs Ren Sunwn- . 2ame g, e Do. De. . ngersoll ‘Rand t.... ....31 Q D Mathieson Alk Wk.$1.50 Q Jan. Do. pf.. Lo 8176 Q Jan, Moot Soim 4 b t'xai’i-xsf. BEAL, " t‘f Car’ e 85E5EE! 31 TR standard 0. L s United Dyew'd pf.1%% Q Jan. United Proft 8har. . .60 — Jan. Weber & Heilbroner .51 Q Dec. Do. Bf..........1%% Q Feb. Extra. Safety Rasor. . 25cex Jan. & Danforin.25¢ ex Dec o CEEEEES5REE Am er. .. Honolulu Cons Oil Hawailan Agric Natl. sani of com 1 il Rand. Oll'& Gas A Walalua Agric. . . . 80c ex Dec. Initial. !lll ix_ Corp new...50c Q Jan, t Phen Ch n..37'2c Q Jan, P dece Natl. Surety ne Ww...51.28 Q Jan. Increased. Am Encaustic Tiling..S1 Q Dec. Stock. N uvey - dober Hee: el mubber - 300 Hee. o “month of December. 8- ecord. | 000 B than 2,000,000,000 passengers annually. The 270,000 miles of bus routes operated are nearly 20,000 miles greater than railroad mileage. T o In the g:lt decade about $9,000,000,- has been spent on roads in the United States. Mortgage Money Loaned At Low Interest Rates Tyler & Rutherford Rep! ing Mutual Benefit Life Ins. Co. 1520 K Street Main 475 OFFICES F orhl::.nn Edmonds Building 917 15th St. in the center d Realty district suites now Very low rentals, [SHANNON & LUCHS) 1435 K St. N.W. Main 2345 Consult Us First ot Bev If you need money for our Real Estate financing et us have your application today. Prompt Service No Appraisal Fee The Commercial National pares with $165826 in the first nine | %! BANKS AND TRUST FIRM STOCK GAINS Public Begins to Take Inter- est in Securities Long Neglected. Special Dispatch to The Star. NEW YORK, November 29.—There was as buoyant a market for the stocks of banks and trust companies yester- day as for those of the industrials, pub- | lic utilities and rails. The shares of & number of the leading New York insti~ tutions sold above prices that were re- alized in the big movement last Spring, when much gossip was heard of prob- able mergers and of the buying into a number of the long-established insti- tutions by new interests. National City Bank stock rose over 100 points, selling at $1,305 a share. There was a bid of $4,600 for the stock jof the old First National Bank, which |is controlled by the Baker-Morgan group. Numerous advances of from 5 to 15 and 20 points occurred in the shares of other local banks and trust companies whose market was stimu- lated by the possibility of additional “rights” or extra dividends when the year's earnings are compiled next month. New Bank Policy. ‘The policy of the National City Bank management in popularizing the shares of their institution is -a new one in banking. It follows similar action by large corporations like American Tele- phone & Telegraph and General Mo- tors, who have recognized the wisdom of having as many contacts with the public with which they do business as possible and who have found that their nings increase and the public atti- tude toward them becomes more fa- vorable as they interest investors in their securities. Banks have tradition- ally been jealous of their control and have hesitated to let stock get into the hands of the general public for fear it might eventually lead to a change in management. The present advance in bank and trust company stocks cannot be ex- plained entirely by an improvement in earnings, as this has been a trying year for many institutions. They have lost thé deposits of corporations and of in- dividuals in the popular pastime of loaning money in the call market at rates of interest which have averaged between 4 and 41, ?fl' cent higher than those paid on daily balances. Other earning assets in the way of invest- ments have also beén reduced by sales of bonds that have been made in order to repair the loss of deposits. Some Issues Decline. Many of the new issues which banks bought last Winter and last Spring have declined well below their sul scription gflcu and the bond depart- ments of banks have had a lean period both from the standpoint of underwrit- ing profits and from that of commis- slons through distribution of bonds to the public. As national banks cannot hold stocks they have not profited from the general appreciation in ‘“equities” this year, although this has been to the advantage of many of the trust com- panies and State banks. HARDWARE TRADE ACTIVE. NEW YORK, November 20 (Special). ~—According to . reports from impor- tant market centers, the general con- dition of the hardware trade is active and staple lines are sharing the healthy demand with holiday lines, Hardware Age will say tomorrow. Revies the year’s business throughout the erent territories it is evident that 1928 will surpass trade in 1927, ‘Western sections of the country are reporting icultural conditions to be very favorable and that farm work is far in advance of recent yea ‘This, of course, lends optimism to the buying public and is expected to reflect itself in stepped-up consumer demand throughout the Winter months. Guns, ammunition and traps are steadily in demand. ‘Weather conditions have permitted the building trades to progress rapidly and the industrial situation is normally satisfactory. Prices are very firm and tend toward advances. Collections are still slow. ~ " Money to Loan it on real estate. Let us have your applications “LOANS ON REAL ESTATE Immediate Action Courteous Treatment Our record of 35 years speaks for itself. Percy H. Russell Co. 1731 K St. N.W. COMPLETE FINANCING 1st & 2nd TRUST MONEY On homes, apartment buildings and business properties. No apprai- sal fee. Prompt service. Real Estate Mortgage & Guaraniy Corp. | 24 Jackson e Main 1403 ' LOANS | On Imgroved Property in Maryland and District of Columbia 6% Interest No Commission Charges WEAVER BRO REALTORS 809 15th Street N.W. Company 1 Main 9486 Mortgage Loan Correspondent Iletropclituén Life Insurance ‘om; TURKEYPLENTFU s ATMODERATE 08T B produced _greater business in Wall t. Commission houses say that whereas a few years 95 per cent of their clients were residents of the met~ ropolitan area, today 50 per cent or more live more than 1000 miles away. Dealers Cut Prices in Closing Hours Before Thanks- giving Day. Money Available for FIRST DEED OF TRUST LOANS On Completed Properties and for Construction Use Reasonable Interest and Commission Rates JAMES F. SHEA 643 Louisiana Ave. N.W. Turkeys were offered at & wide range of prices during the closing hours of the ‘Thanksgiving market, and at closing time there were turkeys enough on { hand to tide the market over the week end. Numerous late arrivals of truck- loads of llve turkeys from Virginia yesterday came as a surprise to local dealers. Shippers always have been advised that live turkeys should reach here at least two days before the holiday, ac- cording to dealers, and surprise was expressed when the several truckloads reached here so late yesterday. Some of the belated arrivals were bought. at reduced prices, while in other instances the turkeys were returned to the \ country to be held for the Christmas \ . market. defects of an Prices dropped to 30 cents for stock \ uninsured not rated as No. 1, while many dealers \ title made every effort to keep prices up to 60 cents for choice stock. Late in the afternoon, however, splendid stock was offered on the country line as low as 45 cents, 50 cents being the price asked by most of the haulers. Several wholesale houses were open this morning to fill late and emergency orders. They were all closed about noon, in time for the merchants to en- joy their Thanksgiving turkey dinners at thelr respective homes. Hotels, restaurants and cafeterias had more persons booked for Thanks- giving turkey dinners than formerly, according to statements of proprie- tors of such places. Housewives are gradually abandoning the habit of re- maining in the kitchen on holidays and preparing dinner, according to re- ports, finding it much easier and less expensive to dine out, explaining the increase in the volume of business in public eating places. ‘Turkey haulers doing business in the local market this week assured buyers there will be no scarcity of turkeys for the Christmas holiday trade. Weather conditions, it is stated, was responsible for a number of heavy haulers holding back their stock, more especially some from distant places where dressing has to be done not only TILE INSURANCE at the CAPITOL TITLE & UARANTEE CO. CHANDLER BUILDING 1425-27-29 18T., N-W. N YoRR TS G cunmANTEE Conmny G. M.-P. MURPHY & CO. New York WASHINGTON Richmond MEMBERS New York Stock Exchange Washington Stock Exchange Richmond Stock Exchange Chicago Stock Exchange New York Curb Market Copy of our “Forinightly Review” on Request 1508 H Street Connecticut at K Main 9600. Private Wire and Telephone to New, York CLARK,CHILDS & COMPANY 120 Broadway New York, N. Y. WASBHINGTON OFFICE 1508 H STREET NORTHWEST MEMBERS NEW YORK STOCK EXCHANGE NEW YORK COTTON EXCHANGE NEW YORK COFFEE EXCHANGE NEW YORK CURB MARKET NEW YORK PRODUGE EXCHANGE BOSTON STOCK EXCHANGE CHICAGO BOARD OF TRADE OHICAGO STOCK EXCHANGE Tolophone Metropolitan 5027 JAMES SLOAN, Jr, Manager Capital and Surplus, $3,000,000.00 Maximum Security for | Your Payday {INothing less than 100% pro- tection is due your Payday cash, and that's just what it will have when you bank at this sixty-two-year-old institution. {Practically any amount will open an interest-earning account here. Open Until 5:30 P.M. November 30th FFIC WHLIAM b, HOOVER WO! U] R . FRA] ST FRANK STETSON . CHAS. ¢ LAMBORN ‘&l.u(n TRD Boxes at Moderate Rentals Same Rate of Interest Paid on nd | | st WM. A H. SEU Y G, SLEPHANE ED) Small H. ROZIER DULANY, Jr. LIN H. ELLIS H, PRESCOTT %‘}‘ Y Wi Sk R S ONER, WAl g A National Savings & Trust Co. Oldest Savings Institution in the District of Columbia. Cor. 15th and New York Ave. ANK R, CE BAI AVID BORNET [0/———=a[——=|al———=3[o|———=]o]c——|alc——o[c———| O] | fl A Third ofa Century Without a Loss INVESTMENT —is defined as the “act of laying out money productively.” Our 6% FIRST MORTGAGES —insure productivity with the principal safely removed from hazards of any kind. In amounts of $250 up. B. F. SAUL CO. Main 2100 925 15th St. N.W. THERE IS NO SUBSTITUTE FOR SAFETY The Final Count Dozens of issues are brought up in every political campaign. But when the final count of votes is taken, it often is found that the result is due to but one factor in the whole cam- paign. We, too, might list a dozen reasons why the First Mortgage Notes issued by Swartzell, Rheem & Hensey Com- pany are so often preferred to all other securities by conservative in- vestors in Washington. But we believe when the final count is taken, all these reasons can be summed up in a single phrase: “Fifty-nine years without loss to an investor.” Your investment funds can have the protection of a house with such a record. The next time you start to make your investment, call in and talk to us first. SWARTZELL, RHEEM & HENSEY CC MORTGAGE BANKERS ©\ 727 1S STREET N-W./ WASHINGTON D.C. OLDEST Natrimal Bank in Dl:l'?:'.ct ot Columbia A Bank Witha Record of Achievement —such as backs The Metropolitan, is well entitled to public confidence, particularly on the part of Pay Day depositors and others to whom safety is everything. {I This bank has successfully weathered the financial storms of over a century and offers you Security and Service second to none. 3% on Savings OPEN UNTIL 5:30 P.M. NOV. 30th FOR PAY DAY DEPOSITORS’ CONVENIENCE == National= =——lo] lc———alc———o[c—| [e———]o[c——]o[c———]0] E———]n] Metropolitan Organized in 1814 Bank 114 Years Old Capital, Surplus & Undivided Profits Over $2,000,000.00 15th St., _Oppooite U. S. Treasury 2 [o]c———[o|c—2|0} S R R A A A P e e i R A R g C A " \h‘\"‘\\‘ Wy S\ Sy