Evening Star Newspaper, January 30, 1929, Page 13

D. C, WEDNESDAY, AVIATION INDUSTRY AIDS REAL ESTATE 13 THE EVENING STAR, WASHINGTON. RAILROADS SHOW INCREASES IN NET EARNINGS REPORTS PUBLIC UTILITIES NEW YORK CURB MARKET Received by Private Wire Direct to The Star Office 125 Shares International Bank (Price on application) | Thom;.s L. Hume | 1412 G Street M. 1346 M. 4733 First Mortgage Loans Lowest Rates of Interest and Commission Thomas J. Fisher & Company, Inc. Money Available for FIRST DEED OF TRUST LOANS On Completed Properties and for Construction Use Reasonable Interest and Commission Rates JAMES F. SHEA 643 Louisiacna Ave. N.W. " LOANS | On Improved Property in Maryland and District of Columbie 6% Interest No Commission Charges EAVER BRO REALTORS 809 15th Street N.W. Main 9486 Mortgage Loan Correspondent Metropolitan Life Insurance Company \. Money for First Mortgages / We make it a point to be very prompt in our report on all ap- plications for loans— with which to build or refinance a maturing loan. If we can approve it -—the money is at your disposal immediately. Always Low Rate of Interest and Commission B.F. SAUL CO. Main 2100—925 15th St. Your Family Home Not a Mortgage Our Mortgage Plan Is a Most Economical Plan of Home Purchase 5% Jos. W. Brooks & Co. Insurance 212-213 Transportation Bldg. Franklin 2913 Mortgage Correspondent Sun Life Insurance Co. of America Money To Loan On 2nd and 3rd Trust and for Home Improvements Quick Action No Red Tape D. C. Property Only § Apply i Penn Improvement Co. Y| Inc. 911 7th Street N.W. Main 512 Investment Suggestions Each month The Equitable pre- pares a list of bond suggestions suitable for business and per- sonal investment necds, This monthly publication sup- plements a Bond List with several features devoted to the interests of Bond buyers. Send for a copy THE EQUITABLE SECURITIES COMPANY ING A subsidiery of The Bquua'.' mu Cn-pn, of ¥ 917 Fifieenrh ertct. N.W. WASHINGTON, D. C. ADVANCE ON CURB merous Issues—Checker Cab Gains. BY WILLIAM F. HEFFERNAN. NEW YORK, Jan records for numera b market trading tod: Despite the fact that vields at current pric s\vd “for 7 following the sen- but the 1 ¥ p consumption in the oil in- v, this class of stock lacked spec- ulative favor and Standard of Indiana c e prac- fayorites | Cab M !’K‘ldh Sp favorite. The price opmod on a block of 6,900 shares at 12 and subsequently crossed this level to a new top. Goldman-Sachs Trading established a new high around the 130 level. General Electric, Ltd., receipts which have enjoyed increasing favor recently opened on a block of 15,000 shares at a new top 01 IS‘“ and it was evident that Ing v~Iy was becoming in- e of the lowest-priced ed on a block of 10900 3%. TI 1t heavy speculation in the issues after a long period of & activity is attributed to reported ime- portant discoveries at its properties. COTTON SUBJECTED TO HEAVY SELLING Market Shows Decline in Early Dealings—Trade Buyers Active. By the Associated Press. NEW YORK, January 30.— Cotton today opened barely steady at a decline of 10 to 12 points under liquidation, combined with some Southern and local selling, inspired by relatively easy show- ing of Liverpool and weakness in Egyp- tian market. There was trade buying on the decline as well as covering, but it seemed to be quite readily supplied, with the market easing off at 19.64 for March and 19.33 for July by the end of the first half hour, when active months showed net declines of about 11 to 16 points. Private cables said Liverpool market had been influenced by hedging, liqui- dation and weaker ruling of Egyptian. They reported a fair cloth inquiry for India, but said many offers were un- wogkable. BALTIMORE TRUST COMPANY IN MERGER By the Associated Press. BALTIMORE, Md, January 30.—An agreement was reached yesterday for a merger of the Baltimore Trust Co. and the National Union Bank of Maryland, according to announcement made by Donald B. Symington, pr lent of the . The consolidation will cre- ate an $85,000,000 bank under the name of the Baltimore Trust Co., and will be accomplished by an ("(Chan"e of stoc! ‘Waldo Newcomer will resign as chail man of the board of the Baltimore Trust Co., according to the announce- ment, to become chairman of the exec- utive committee of the combined insti- tutions. Phillips Lee Goldshorough, United States Senator-elect and former Gov- ernor of Maryland, now president of the National Union Bank, will succeed Mr. Newcomer as chairman of the board. Mr. Symington will continue as president of the enlarged institution. Other officials of the two institutions will retain their present titles, and all employes of both banks will be con- tinued. W., B. & A. Bonds Gain. BALTIMORE, January 30 (Special). —Recent_advances scored by the Wash- ington, Baltimore & Annapoiis 5 per cent bonds on the Baltimore Stock Ex- | change has renewed reports of the sibility of a large railroad acquiring the rail end of the business Electric Light f Baltimore acquired con- rest in the Washington, imore & Annapolis mainly for the ise that went with it. being separated have fre- been heard in the financial | district, Baltimore Traction Report. BALTIMORE, January 30 (Sp The annual report of the controls the ice Commission shows a loss of 18,248, 106 passengers in 1528. and & loss in | net income of $123,793.24. | At the same time, the higher carfare 2 any to increase its nue to $1 3 more than in 1927, offset by an increas in cperating expenses last Expenses in 192 compared with $10,624, ing feature of the ver, is the fact shown a irop in net, ise of 10 cents 5 cents w to effect. receipts, 10,587 cases; —Lower; 5 firsts, 38a38'%; or- 39241; 2036, “irm; recelpts, none; prices unchanged. { TREASURY CERTIFICATES. High Records Scored by Nu-§S NEW YORK, is a list of s Janu: MINING STOCK. 'Cn{“ MM Ltd.. .13 MR today: v. Noon. 4Teonard vE G & YP&LA SPMG6 2Penn O E ¢ 1Eem P &L 102%2 26 88 100% 101 93 8 Epecial Dispatch to The Star. BALTIMORE, Md., January 30.—Po- tatocs, white, 100 poun sweet potatoes, barrel, 1.50a2.75; barrel, 1.50a2.75; Brussels sprouts, quart, 15a25; age, hamper, 1.40al.75; carrots, mo 4.0026.00; celery barrcl 1.50a1.75; onions, 100 pounds, 1.50a5.50; ter plant, 100, 8.00210.00; peas, bushel, 2.00a2.25; . crate, 4.0025.50; parsnips, bas- Snoy cabbage, bushel, 60a bushel, 60a90; tomatoes, crate, u'\’bO turnips, basket, 40a60; apples, bushel, 75a2.00; cranberries, half barrel, 9.50210.50; grapbfru\! box, box, 2.50a4.50; tan gerines, half strap, 1.25a2.50; straw- berries, quart, 30240. Hay and Grain Prices. Wheat~No. 2 red Winter, garlicky, spot, 1.3574; January delivery, 1.35 Corn—N 1.08; No. 2 cob corn, 5 Oats—No. 2 white, domestic, spot, 6la6 No. 2 white, domesMe, spot, 59a60. Rye—Nearby, 1.10a1.20. Hay—Receipts, none. hamper, ellow, domestic, spot, 1.10; ¥ l’lhlfln" here in limited quantities only, r‘ i# [t is more than ample for the demand, . [51; store packed, 28; ds which is being supplied, mostly by truck, from nearby points, few carloads being received. ‘There is not enough business passing to establish prices on the various kinds on merit at a rangg of 17.00a19.00 per ton of timothy or clover hay Straw—No. 1 wheat, 11.00a12.00 per ton; . 1 oat, 12.00a13.00 per ton. Dairy Market. poultry—Turkeys, pound, 33a40; 5230; young chickens, 32a38; poor Li! old, 2 Lk[‘l\oln<, ; young chi d, 25a30; old roosters, 188 ducks, 25230; geese, s—Recelpts, 602 cases; native and by firsts, free cases, dozen, 38%; current receipts, 32a96! Butter—Good to f: pound, 46250; prints, ncy creamery, blocks, 49a 'y prints, 25a28; rolls, 25a28; process butter, 41a42. POTATO MARKET STEADY. CHICAGO, January 30 (#) (United States Department of Agriculture).— " tatoes—Receipts, 68 cars; on tracl total U. S. shipments, 622 car: fimduw fair; market steady; Wisconsin, sacked round whites, 95a1.15; Minne- sota and North Dakota, saeked, round whites, 90a1.00; ldaho, sacked, russets, shade higher. Edinburgh is planning to become the 4 flying center of Munnd. While has is| g Need for Landing Fields Creates New Values—Other Busi- ness Benefited. BY J. C. ROYLE. Spectal Dispatch to The Star. NEW YORK, January 30.—Aviation | is changing the entire trend of real | estate development and values in cer- | tain sections and is having a basic ef- | fect on the living conditions of Ameri- can people. Airplanes are skimming the skies in | every direction on mail and passenger routes.” They are being used in increas- ing numbers for transportation of goods and are working in conjunction with bus and rail transportation. And they must have some place to land. Even the endurance flight of the Army plane Question Mark recently empha- sized the fact that bases must be pro- vided. Land to provide airports is in demand, with values rising. The landing fields to be of most use must be near centers of population, ly accessible for passenger and hin reach of wholesale and retail and manufacturing districts. A con- siderable arca is necessary, and it must be free of obstacles and readily drained. Up-to-date realtors have been scurry=- ing around for options on such proper- ties in every prominent center where airplane routes intersect. Railroads are buying additional yard- age for aircraft, where the latter can be serviced in close conjunction with the rail terminals. This is essential in carrying out combined airplane and rail services, such as is being worked out by the Pennsylvania and Santa Fe roads in conjunction with the Trans-Conti- nental Air Transport, Inc. Where permanent landing fields have been established there has been a rush for sites in close proximity by manufac- turers of light articles which can read- ily be transported by air express or by air mail. Homes near the lds are being built for industrial workers, but moving away from these sites, with dwellings of the better class belng sup- planted by hotels, restaurants and offices. This movement and the expansion of realty holdings are not new. The same transition took place to some ex- tent when the automobile became a dominant factor in business as well as social life. There is small doubt that the expansion of metropolitan areas for a distance of 25 to 30 miles was direct- ly due to the automobile. A similar | broadening effect may be expected from aviation. Airplane factories are naturally being built near landing fields, or rather land- ing ficlds are a necessary complement of an airplane factory. More ground is also in demand in these localities for use by makers of parts and acces- sories. Oil and gasoline stations are building up a fine business from the servicing of airplanes and the stocks of tires, springs and other products must also be housed in the neighborhood. The airplane is not only affecting real estate, but is proving a spur to building conscrucuon WHEAT PRICES GAIN IN EARLY DEALINGS Reports of Unfavorable Weather in West Coast Ad- vances. By the Assoclated Press. CHICAGO, January 30.—Foreign buying here and unexpected upturns in Liverpool quotations led to an early advance of the Chicago wheat market today. Official reports at hand said the past week had been unfavorable for domestic Winter wheat in the maj producing areas. Opening Y3 to 34 higher, Chicago wheat afterward scored additional gains. Corn and oats were also firmer, with corn starting 14 to 34 up, and subsequently commulng to climb. Provisions were weak. Both the Washington weekly official crop report and the Kansas State re- port today showed unsatisfactory wheat conditions, including prevalence of ice and dearth of snow protection. Under such circumstances, and with Liverpool prices up, whereas a decline was due, a fresh buying movement developed here. Forecasts of colder weather in the West tend also to stimulate purchasing. On the other hand, liberal receipts of wheat at Kansas points, as well as at Omaha and St. Louis, attracted notice, Hutchison, Kans., for example, report- ing arrival of 120 cars today against 19 cars a year ago. Argentine advices of dry, hot weather tended to strengthen corn values much of the time today. Other bullish fac- tors were reports of bad condition of roads in many parts of domestic corn territory. It was also pointed out that despite terminal receipts so far, 17,000,- 000 bushels more than last season, exist- ing stocks were 7,000,000 bushels less than at this time a year ago. i SR i GERMAN BONDS AND STOCKS. Special Dispatch o The Star. NEW YORK, January 30.— Bid. Ger Govt Red Loan with draw ctfs att per 100 R M. 60.00 Gér vt “Red. Lo'\n with draw ctfs per 1,000 35.00 40.00 (Quoted in doliars por mnuon ‘marks.) Hamburg 4'4s 000 30.00 (Quoted in doliars Gel Gen Elec 4 Ger, en Elec 4 Asked. 2 export, January delivery, | G Rudolph Karstadt FOREIGN EXCHANGE. (Quotations furnished by W. B. Hibbs & Co.) Nominal gold Selling checks value (or par).” _today. $4.8665 $4.847n 193 10390% ‘138913 (2375 052312 1192342 Berlin, ma Rome.” lira. Zurich, " franc: . Athens, drachi Madrid, peset Vienna, schillini apest. pengo. guie. Crown (nom.j SHORT-TERM SECURITIES. (Reported by J. & W. Seligman & Co.) Balto. & ol»m 4* S 1938, Pet 41 nsmz ca sla Colorndo ks Ko Ruy Coltmbin Gas & Elec. 5s 1952 Cudahy Packing Co. 51a: e A Con 413 1030 b Gen. Mot. Accep. Corp. 8s 1937 Genéral Pet.’ Coip. 55 1940.... 10 Goodyear T. & R. 9! nd_Trunk Cnn;\da & 1su 5 Oil of Pa. bs T R Michigan Cent.. Rwy. 45 1939 Qrewon Short Line 4z 1920. Pure Oil Corp. ‘5las 193’ Shell Unton OIl Co, 6s 1947.0 Sinclar Crude Ol 5725 1938, Pac. & Co. 45 1929 tandard OIl N. Jersey 55 1948 Mt & So Ry, 45 1029 o ng M. 55 194 Wheeliag Steel Cor. 5tas 1045, 10014 the so-called residential districts are| BY KENNETH S. VAN STRUM. NEW YORK, January '0.—During the last three years motor truck man- ufacturers have been operating under very difficult conditions for which they themselves were largely responsible. Several years ago they overestimated sales by offering trucks on too easy credit terms, and small trucking com- panies and individual drivers, who de- cided to go into business for themselves, bought trucks in large quantities while the trucking and transporting business flourished. When business slowed down, however, not only did the business in new trucks disappear overnight, but truck manufacturers found themselves with frozen credits and many repos- sessed trucks. Today sales are smaller in volume because of the more stringent credit, but the truck business is on a much firmer basis. ‘The manufacture of motor trucks cannot be standardized to the same ex- tent as passenger car production, be- cause many trucks must be made to order. While the trend in recent years has been toward lighter trucks where trucks can be made in larger quantities, even here it seems that the companies formerly concentrating cn the manu- facture of larger trucks have been most successful. High Grade, Heavy Duty. Mack Trucks, one of the leading manufacturers of heavy duty trucks, has brought out a light truck with con- siderable success. ~Mack distributes through sales subsidiaries and does a large foreign and domestic business. ‘While the company experienced diffi- culties along with the rest of the in- dustry during the past two years, its earnings have been remarkably steady and it is in a strong financial position. Mack recently simplified its capital ructure by retiring all preferred stock issucs. In the past six vears it has| 1f{70 (] II BROCKW. AY il | YELLOW- ll I || I|||||||||l'l|| ' MACK 110 |||||l||I . 'I..I | FEDERAL 20 'I'IlllllllllllIl averaged $7.23 a share and paid $6. Earnings for 1928 are expected to reach $7 or $8 a share, and if the truck busi- ness continues to expand even better is expected this year. ‘White Motors, another manufacturer of high grade heavy duty trucks, also brought out a lighter vehicle. In 1927 this company underwent a change of management and since then has recent- ly expanded its operations to cover all phases of the truck and bus fleld. White's unusually steady earnings du ing the past six years have averaged $2.40, and during the first half of 1928 it earned $1.45 a share and at present is paying $1 a year in dividends. It is officially reported that earnings have been expanding. Assembles Trucks. Brockway, recently listed on the Stock Exchange, assembles units manufac- tured by other makers into heavy duty trucks. It owns the Indiana Truck Corporation, making both light and heavy duty trucks, and is negotiating for the purchase of some small truck manufacturing concerns. Brockwa, while reaching out into different fields, | has effected savings by standardizing its models. About 40 per cent of Brock- way’s business is in foreign countries, and since this is considered one of the most important future cutlets for the truck business, its position in this fleld should prove an advantage. From 1925 to 1927 the company’s earnings aver- aged $5.22 and this year it is stated that earnings may reach $7 a share. The company could afford to increase its $3 dividend rate, but it may decide that further expansion of its business would be more desirable. Federal Motor truck is one of the older companies in the business, manu- facturing a complete line from 1 to 712 ton trucks. It sells through subsidiaries both in this country and abroad. and, although its profits were low during 1927 and the first half of 1928, it is stated that earnings have recently been rising. From 1924 to 1927 Federal av- eraged $2.05 a share and is now paying 80c in dividends plus an extra. General Motors, In 1925 General Motors found that truck manufacturing was quite different from passenger car building and turned all truck, taxicab, bus and Hertz Drivurself business over to Yellow Truck and Coach, all of whose common stock it owns. Yellow Truck has shown heavy losses since 1924 due to its policy of writing off obsolete equipment and to the heavy costs of a plan to con- solidate operations which entailed mov- ing the Chicago and East Moline plants to Pontiac. In the face of these losses Yellow stock has shown a steady rise, which can only be attributed to a con- fidence in the controlling corporation, General Motors. Until the rehabilita- tion has been completed, however, the stock can only be considered specu- lative. The sharp rise in Yellow stock last November shown on the chart was due to the disposal of a large block of class B in the open market by General Motors. In order to sell the stock it appears that it was necessary to buy in a large block of stock, thus running the price up, and then dispose of the holdings as the price dropped. In addi- tion to all of the common, which is, of course, out of the market, General Motors still holds a large block of class B. One is naturally curious-to know if they intend to dispose of more class B In the same manner. ‘Outlook. Having tightened credit requirements, truck manufacturers are on a much firmer footing and in a position to benefit by the present high rate of in- dustrial activity. They also will profit by the construction of inland water- wi Boulder Dam and the work .en- -bs,lled in the Mississippt flood control In addition to this, manufacturers are expecting a large increase in the ex- port business. In 1922 about 1 out of every 20 trucks was exported, while today about 1 in every 4 leave the country. Thus industrial conditions in foreign countries, as well as at home, are of tremendous importance in de- termining truck profits. (Copyright, 1929.) o Airplane Commuting Service. NEW YORK, January 30 (®).— Costal Airways, Inc, New York, has announced it will start May 30, a Sum- mer airplane commuting service from Battery place, to Gravesend Bay, Brocl 1 yn. . PARIS BOURSE PRICES. PARIS, January 30 (#).—Prices were firm on the Bourse today. Three per cent rentes, 72 francs 65 centimes. Five per cent loan, 98 francs 90 ce times. The dollar was quoted a 25 lnntssi). centimes, Special Dispatch to The Star. NEW YORK, January 30.—Now that most of the important railroad state- ments for 1928 have been published, it is possible to obtain a more definite idea of what the directors of these companies may regard as conservative action in the way of dividends to be declared in the first half of 1929. _ The remarkable feature in a ma- jority of the statements issued is the higher percentage of net increase in earnings over the previous year, com- pared with the showing of gross reve- nues. This reflects in large measure a greater efficiency in operations due to more amicable relations with labor, improved loading and shop methods and the use of larger units both of cars and of locomotives, Some portion of the net gain also has been due to a reduction in maintenance charges after several years of “plowing back” earnings on a large scale into railroad properties. Significant Galns. mong the Eastern roads those that have made the most striking gains dur- ing the past year are the Pennsylvania, Baltimore & Ohio, New Haven and the Erie. The Pennsylvania shows carnings in excess of $14 a share and, while it did not increase its dividena last weck, there is a strong expecta- tion that it may do so before the end of 1929. The Baltimore & Ohio was able to show a net operating income in 1928 nearly as high as in 1926, although gross earnings were nbuu' 521,000,000 less than in that year. Wall Street confidently believes that the divi- dend on Baltimore & Ohio common stock will be raised to 7 per cent next June, The Erie had more gross in 1928 than in 1927 and a surplus over charges $7,500,000 greater than in the previous vear, It will probably resume dividends on its preferred shares within the next three months. The common stock also is in line for an initial payment. Among the Western roads, the St. Paul stands out conspicuously for a record that includes an increase in operating income of over 100 per cent, compared with 1927, which will permit it this year to pay the full five per cent interest on the adjustment bonds and earn an amount for the preferred stock that will give occasion for con- sidering dividends on this stock. The Great Northern and Northern Pacific are both entitled to higher dividends from their 1928 results. In addition, the Burlington, which they control, had the largest earnings per share in several years. The Chicago & Northwestern also did well and has already indicated a more generous dividend attitude by paying an extra on the common shares. The Southern Pacific 1s another road whose expansion in revenues last year akes the question of an increase in its dividend rate to 7 per cent, after having paid 6 per cent for over 20 years, an active one. Southern Roads. Conditions in the South are still un- favorable, but less so than six months ago. The report of the Southern Rail- way today for the twelve months show- ed a decrease in net operating income of $2,500,000. No change in the pres- ent 8 per cent dividend on the common stock is probable. Atlantic Coast Line has had a 25 per cent drop in gross earnings and one of 40 per cent in net in the past two years, but has been able to maintain dividends of 10 per cent. More serious have been the decreases on the Florida East Coast, amounting to over 50 per cent in gross and over 70 per cent in net the past two years. The Seaboard Air Line in December showed a good “come- back,” but for the 12 months a slight loss compared with 1927. Both for the Florida East Coast and the Seaboard 'L Alr Line the concern is over boad in- terest. No dividends are possible. Among the Southwestern roads there are good prospects for larger dividends and initial dividends in 1929. The Mis- souri Pacific, Texas Pacific, Prisco and Missouri-Kansas-Texas all had a good year. The St. Louis Southwestern did not do so well as the others, although its common stock during 1928 ran up to nearly $124 a share. The soft coal roads have been affected by conditions within the industry which reflect in a lower income for the Virginian, Western Maryland and about an even break by the Norfolk & Western. The Lehigh Valley and the Reading both made good returns though not comparable to that of the Erie. Tourist Travel Report. NEW YORK, January 30 (#)—Grow- ing popularity of tourist third cabin accommodations in ocean travel is in- dicated by International Mercantile Marine Co.’s report that this class of passengers increased 35,000 last year on all lines over 3927. Steamers operated by International Mercantile Marine alone carried 56,755 tourist thlrd-clus passengers, a mxn of 7.000. First Mortgage afld Construction Loan| Applications Invited at 5%2% Glover & Flather 1508 H St. N.W. Main 1753 Over a Third of a Century's Ezperience Profitable Management That is what placing your property — apartments, homes and business real estate—in our hands re- sults in. ‘We stop leaks that escape casual notice, and increase income at points often overlooked. B. F. SAUL CO. Main 2100 925 15th St. THURSDAY! FRIDAY! SATURDAY! LAST 3 DAYS OF FIORSHEIM SALE ¢ Don’t fail to get yours, men! Man’s Shop 14th at G 3212 14th