Evening Star Newspaper, February 15, 1929, Page 13

FINANCIALY CURB SSUES' RALLY IS LED BY UTILITIES Specialties Also Prominent !-x:; in Recovery—Motor Shares Are Active. BY WILLIAM F. HEFFERNAN. Spectal Dispatch to The Star. NEW YORK, February 15—As a gzup the public utilities commanded place of prominence in today’s curb market rally. Influenced by reports of mergers and consolidations, heavy buying developed in such issues as Electric Bond & Share Securities up some 8 points at one time, American & Foreign Power warrants, up over 7 points before profit-taking set in, and American Super Power class “A" up over three points. The new electric Bond & Share Co. stock moved sympathetically with the securities shares. One of the outstanding exceptions to the main trend was Acoustic Products. Breaking sharply from the previous final of 111, the price declined steadily un- til it reached a new low at 5. This was one of the low-priced specialties which had been consistently “bulled” when the upward movement in the market generally was at its height. The man- ner in which it sold off today was taken to iIndicate that much of the recent l;l“l:m‘ had placed the stock in weak ds. Specialties that were prominent in the recovery included Grigsby-Grunow, which sold at a new high of 178, but subsequently lost more than the im- provement; Goldman-Sachs Trading, old, which equaled its previous top; Gotham Knitbac, General Fireproofing and Gold Seal Electric, all at their best. Safe-T-Stat below 17!, was at & new low for the year. Auburn led the motor stocks, reach- ing its best, above 158, while the air- craft issues were taken at generally higher prices. The ofls were little changed and the coppers were inclined to follow the upward trend of this group on the stock exchange. ] COTTON IS STEADY IN OPENING SALES Covering and Commission Buying Cause Upturn in Early Prices. By the Associated Press. Following is a list of stocks and bonds ::ded in on the New York Curb Market THE EVENING STAR, WASHINGTON, D. C, FRIDAY, FEBRUARY 15, 1929. NEW YORK CURB MARKET Received by Private Wire Direct to The Star Ofice g I Ri Lo Br 6'ss '53 94 Larabee 65 41.. 882 SeocoomeZasns ] Sorabueluormnl oS oo S RREE] 3352 53 86! '37102 93 229! 8..,.. 963 6 Kop Gas&Coke 58 ‘47 9612 2026 104% Pow €5 A 2026 1043 1 EES| 30 10084 1 026 10582 213 IBEI Invest Inc 20 L _optl Besar-ano dberg Stores pid an Sachs . arnsns I o R e SHSES S NEW YORK, February 15.—The cot- ton market opened steady at an advance of 3 to 6 points in response to relatively steady Liverpool cables, while there was also covering and some local or com- mission house buying on a belief that yesterday’s selling had improved the technical position. The advance to 20.04 for May and 19.44 for the October contract was checked by & re- newal of liquidation, and the price dropped back to 19.98 for that ition, Sith ihe general list ruling about 1 to 4 ints net higher at the end of the first mll hour, on a moderate volume of business. Private cables reported trade and buying of near months by leading m houses in Liverpool and India, but t yarns made from both American and Egyptian cotton were frgely offered. . WHEAT PRICES GAIN IN EARLY TRADING Market Goes to Record High on Reports of Bad o 3 8t Res! 8 Sehulte Un- Sc-f ) Bl Py Serv vie. 200n i =458 88 T £ 0l n SwarnBo a2 &2 FE I FE OEEE sezEuciZasan NREEI! Uni J' S Rub 8s " &m & Re 538 BY KENNETH 8. VAN STRUM. NEW YORK, February 15—It is widely recognized that the stock market forecasts future business conditions. If business activity were to continue to expand indefinitely in the future it would be practically impossible for the stock market to enter into a broad de- cline. But since many business men have expressed their doubts as to the extent of the present expansion in busi- ness, it is important from an invest- ment point of view to estimate the % |probable peak in the current phase business expansion. Many theories of the relationship be- tween business activity and stocks have been worked out. Some of the most useful are based on the assumption that business expansion tends to overreach itself and that the point is finally reached where past experience has !shown that the expansion cannot con- ?|tinue until a temporary readjustment’ has taken place. During this period general business would be less active and the trend of stock prices would turn temporarily downward. Iron and Steel Barometers. In order to get figures which will tell the degree of business activity it is cus- tomary to use iron and steel production. These commodities are so widely used that they are considered typical of gen- eral business conditions. One theory uses figures showing the percentage of pig iron furnaces in blast. It is maintained that a normal condi- tion is indicated when 60 per cent of the total number of pig furnaces in the country are in operation. If busi- ness continued at this level, a state of equilibrium would ‘be maintained and business would only increase as fast as the country grew. This is not the situation, however, for the percentage of furnaces in blast fluctuates widely above and below the 60 per cent normal level. The theory then says that when business is con- tracting and activity drops below the 60 per cent level, business is not producing enough goods to meet current needs and the stock market will soon commence to rise in anticipation of greater activity and larger profits in the future. On 4 | the other hand, when activity increases 3 Russ M 5 Saarbruecken nta Fe O s 1Un El Se 7s A WW 10 Dt Tod 8k 41 ... 891 39 Un Stl Wks 6125 A 47 90 xd—Ex dividend. wi en issued. th warrants. - % #l:: | CHICAGO LIVE STOCK MARKET CHICAGO, February 15 (#).—(United States Department of Agriculture) — Hogs—Receipts, 46,000 head; slow; mostly 10a15 lower; top, 10.50 paid for 160-280 pound weights; largely a 10.25a %5 [10.40 market for desirable 160-320 pound weights. Butchers, medium to choice, 250-300 pounds, 10.10a10.40; pounds, 10.10a10.50; 160-200 pounds, 10.10a10.50; 130-160 pounds, 9.25a10.50; cking sows, 9.40a10.00; pigs, &? chofce, 90-130 pounds, 8.00a9.50. .; 3,000 head; calves, receipts, 1,000 head; light yearlings strong to 25 higher; steers and other classes mostly steady; best yearlings, 13.50; most steers, 11.00a12.25; grades predominating; sla classes, steers, good and choice, 1,300~ and passes the 60 per cent level, ex- pansion is being carrled too far and stock prices will commence to decline predicting declining business and lower profits in the future. 1t is worth while to note that in Jan- uary the percentage rose above 60 per cent for the first time since April, 1927, According to the usual interpretation of this theory, business activity is expand- ing at such a fast pace that it cannot be maintained permanently. Accord- ing to this theory, therefore, it would not be unusual tq find that the general level of stock prices would decline tem- porarily in anticipation of this event. Future Business. In recent years there has been a tendency for the trends of stocks and business to correspond more closely, due perhaps to & more general appreciation of the fact that declining stock prices mean decreased business activity later. The following table shows the stock market and business peaks since 1906, and the lag between the two: Stock Market. L Qctober, 906" OGtohcE 10T, 12 monins. February, 1910, February, 1913. January, 1520, May, 1933. February, . April, 1926, 3 months, From what happened during this period one might expect that a reces- sion in business activity would follow from two to four months after the general stock market reaches a high point and declines. ‘The best opinion seems to be that if ness will be temporary, like the reces- sion of 1923 and 1926, rather than a jum | major depression as in 1921. None of the dangerous conditions such as in- flated commodity prices or large inven- tories in the hands of business men, which cause major depression, exist to- day. The opinion is that even if a business recession does come it will be temporary like those of recent years, rather than a repetition of the 1921 de- this occurs today, the decline in busi- | INVESTMENT TRUS GROWTH DESCRIBED Commerce Department Offi- cial Praises New Form of Thrift Promotion. Lauding the Investment Trust as one of the great stabilizers for security prices and insurance against investment hagards, L. Seth Schnitman, chief of the Survey of Current Business Division, Department of “Commerce, pictured the amazing growtn and methods of oper- ation of investment trusts, in a talk over the radio last evening. 8, on “Mass Investment,” Mr. Schnitman said in part: “The rise of American investment trusts from resources of only about five million dollars in 1924 to about one and one-half billion dollars at the present time is one of the most important and most spectacular single developments in the fleld of American finance. No other institution has ever witnessed such WESTERN FINANCIAL POWER ORGANIZES Special Dispatch to The Star, NEW YORK, February 15.—The in- creasing financial independence of the West and its ability to command large amounts of capital for local develop- ment is st ted in the offering of the shares of the Chicago cm‘;sontlm, which will produce nearly $60,000, cuh‘m' with which to operate in secur- The influence of this concern in its fleld may be indicated by a glance at the names of those prominent on its board of directors. Among them are the president of the Pullman Co., the head of Montgomery Ward & Co., the president of Marshall, Field & Co., the chief executive of Armour & Co. and the vice president of Swift & Co., the president of the United States Gypsum Co. and of American Steel Foundries ;n:‘u members of the Marshall Field amily. It is frankly stated in the circular describing the securities of the Chicago Co?onuon that it has been organized under the laws of Delaware “to s sell and trade in stocks and securities of any kind, to participate in under- writings and fdicates, and to engage in such other investment activities as its board of directors may determine.” growth in such short time, not even the banks with their resources of 72 billion or the life insurance companies with resources of 16 billion or building and Alds. to, Thrift.. “The savings banks and building and loan associations; life insurance, Liberty bonds, distribution of stock to employes and customers on a f‘-rull-plymm! plan by an mcre: 1y m“mb" of our corporations, of factors and more have brought to the American public a greater consciousness on the subject of thrift, savings and invest- ment, “But the safe investment of money at good ylelds is in no way an easy mat- ter. Investing, like medicine, is & science. The operation may be success- ful, but the security may lose its strength. Assuming capital to be lim- ited, there are not many investments if confined to one or two securities where mistakes would not be costly. Most in- vestors do not have enough capital to properly diversify, or if they do, they do not possess sufficient specialized knowledge of -business and industrial conditions to correctly diversify. “Where the individual of small re- sources can invest in only one or two securities, the Inyestment Trust, with its pooled resources and expert knowl- edge, can invest in a lafge number of securities, thus cuting down the misk of investment. The average individual of small resources thinks he invests when in fact he really speculates or even gambles—perhaps upon the “tip” of some friend, trusting that his gamble may yleld a profit. The Investment Trust does not concern itself primarily with immediate speculative profits, The trust visions. ahead,.not an hour or & day, like the trader or speculator— not a week, a month, or & year—but the longer period. ‘““The stock market is now front page news. Estimates place American in- vestors at between 15,000,000 and 20,- 000,000. The average secondary school student is talking stocks—dreaming of the day when he, too, may see 500 or 1,000 per cent profit upon some small investment. Whither will it lead? Needless to say, the average individual of this type is, in the strict sense of the word, & gambler. Investment trusts, properly managed, take investment out of this nefarious fleld, and perform not only an economic but event a philan- thropic service in reaching out for the funds of this large group of “would-be” investors. Invesiment Policies. “There is nothing new in the state- ment that the rising profits of Ameri- can business to the owners.of com- mon stocks. And 80 it is with apprecia~ tion of this fact that by far the largest percentage of resources of investment trusts are invested in common stocks of basic industries whose growth is vir- tually assured as a corollary of the growth of the Nation. loan associations with assets of 8 billion. i Under the loose 1 age of Wall Street this would be ated as an “in- vestment trust.” However, the managers of the concern very frankly laim such a title, stating that “the corpor- ation is not a so-called investment trust, but is a financial corporation ed to supplement the exis cilities of ‘the Middle Wi :mwe:! if other omni:nt:gl;‘!n % the e type were equally ex- pl.%llx,xmc their real purposes to the public. There have been numerous “invest- ment trusts” or “trading corporations” formed in the past year out of capital raised in Chicago and one the Pacific Coast without asking any odds of Wall Street. Several of them, especially TFITNANCIAL. 13 those on the coast, bave been very suc- cessful in their investments as well as in their trading operations. A few have dealt mainly with local securities, while others have undertaken to develop a broad portfolio of domestic ang foreign issues. None, however, has backiag or the financial s Chicago n, which will rank with the or four largest orl-nl:t&:s of its character now lo- had the of SINCE 1889 GROVE’® BROMO QUININE | LAXATIVE TABLETS INVESTMENT. IS ALWAYS PROFITABLE when funds are placed in Shannon and Luchs First Mortgage Real Estate Notes HE many elements of safety offered by this proven form T of investment make it most desirable when one takes into consideration the fortunes which are lost each year in the stock market. The majority of peopie operating in this present precarious market are individuals who are trying to win back money lost in previous operations. Had these same ‘people been content with the steady gen- erous income of six per cent and the protection offered by con- servative loans (no Shannon and Luchs Loan ever exceeds 60% of a carefully analyzed appraisal), they would now be in the field of profit- able investment rather than in the field of hopeful but precarious specu- lation. A Sure Return of 6% is Preferable to a Chance of Quick Wealth! 1,500 pounds, 11.75a14.75; 1,100-1,300 pression. po\sg&s. 11.75814.75; 950&1,1% wun!dbs(i —_— 12.00a14.75; common and medium, X Dounds up. 9.00412,00; fed yeariings, SHORT-TERM SECURITIES. fl:&lfi; mgll:'g% Big good and choice, 750-950 pounds, 12.00a (Reported by J. & W. s'nmi?a& c&r and pm!l 4 l:n Lo m n;g!ctlu‘\: 15.00. Alls-Chalmers Co. 55 1037 4 385" | these’ enterprises, however, is not_ an Weather. T Bi REFFSEE T “‘Current reports of corporations have never shown business more efficient, business ot SRR NNE83 oy 2588 By the Assoclated Press. s CHICAGO, February 15.—Notwith- that Liverpool wheat quota- ,..,:..mfi. je i<} o Ex Co. Amer. 5s 1953.. 100 tions showed a tendency to lag, the Chi- cago wheat market today estal & new high-price record for the season. Advices continued to tell of unusually severe cold in Europe and to cause fear of crop damage. Starting 3 off to 3 up, Chicago wheat later developed a general upward bent. Corn, oats and provisions were easy, corn opening un- changed to % down, and subsequently bolding near to initial figures. Commission house buying of wheat was strongly in evidence at times today, and was ascribed largely to foreigners and the Northwest, as well as to East- ern sources. On the other hand, sell- ing to realize profits for recent pur- chasers was also apparent, and was given some stimulus through forecasts of better weather abroad and from re- luctance which the Liverpool market displayed in responding to price up- tumns on this side of the Atlantic, Friends of high prices for wheat put considerable stress today on a Wash- ington crop summary, which was con- strued as very bullish as to the Russian situation in particular. The summary stated that the Russian was giving in- dications of alarm over the outlook for the growing crops in Russia. Mean- while, British cable advices said that although the forecast is for rising tem- peratures in Europe, apprehension re- mained that the cold wave would result in considerable abandonment of acreage sown to Winter grain, especially in Po- 3 3 3Bt B s 5 2. 36 n Camp Pdr pfd. o 20 ‘Heifers, good and choice, 850 pounds down, 11.00a13.25; common and me- dium, 8.008211.00. Cows, good and choice, 8.50 a 10.00; common and me- dium, 6.75a8.50; low cutter and cutter, 5.76a6.75. Bulls, good and choice (beef), 9.40210.75;. cutter to medium, 7.75a 9.40. ~ Vealers (milkfed), choice, 12.50a15.50; medium, £ 12,50; cull and common, 8.00a11.50. Sheep—Receipts, 13,000 head; market steady; bulk - fat lambs, 16.25a16.75; early top, 17.10; bulk fat ewes, 8.25a 9.50; feeding lambs steady, 15.00a15.50. Lambs, good and choice, 92 pounds down, 15.85a17.15; medium, 14.65a15.85; t cull and common, 11.00a14.65. Ewes, medium to choice, 150 pounds, down, 7.50a9.60; cull and common, 3.7588.00; feeder lambs, good and choice, 14.50a 16.00. Baltimore Markets Special Dispatch to The Star. BALTIMORE, Md, February 15.— Potatoes, white, 100 pounds, 1.00a1.35; sweet potatoes, barrel, 2.00a3.50; bushel, 75a1.85; yams, barrel, 2.0084.00; beans, bushel, 2.00a4.00; cabbage, hamper, 75a ; 3 crate, 2.00a3.00; 6.00; kale, barrel, 1.75a2.00; lettuce, hamper, 1.25a2.00. Tel. 45 1929 s & Elec. Qudahy Packing Go. Bdison Bl 1l Bosion n. Mot. Acce General Pet, Co! Good: T, & Skt 0058 1052 i o, Union il Co. of O vy for every 91,743 people. easy matter, but in the hands of the Investment Trust investment becomes morAel o§ a a:unee. Fit - investment ts w, and I believe they will have rewggu of $25,- 000,000,000 within the next 10 years, their investments will tend to stabilize the market for the securities which they purchase and hold. The wide specula- tive fluctuations in the stock market, ' which hitherto have been so injurious to the fleld of investment, have been largely due to recurrent rushes on the part of uninformed and untrained ‘in- vestors’ to buy stocks at inflated values. Just so long as investment trusts con- tinue to h\ay sound securities predicated upon sound specialized analyses, so will this new creature in American finance come to be the stabilizer for security prices and urance against in- vestment hazards.” Abyssinia now has only 1 automobile First Mortgage Investments Telephone Main 2345. 1435 K Street Northwest Get Away Fast ahead of the Crowd land and Prussia. DIVIDENDS. Pe- Pay- Btock of Corp. riod. Rate. able. record. Am Int cp...init SA. $1 r. 1 Mar. 13 Do. init 8. Amer Ry Exp..... Amer Tel & Cable. ®on G of Bal pf E. Do. pf D. Onions, 100 pounds, 3.50a5.50; oyster plants, 100, 6.00a10.00; peas, bushel, 2.00a2.50; squash, crate, 2.50a3.50; parsnips, basket, 75a85; spinach, bushel, 75a1.00; tomatoes, crate, 1.25a3.50; turnips, basket, 50a60; apples, bushel, 75a2.00; cranberries, half barrel, 9.00a 10.00; grapefruit, box, 2.5023.50; oranges, box, 2.00a4.00; tangerines, half strap, 1.50a2.60; strawbe , quart, 40a50. Hay and Grain Prices. ‘Wheat—No. 2 red Winter, garlicky, spot, 1.40; February delivery, 1.40. Corn—No. 2 export, February delivery, 1.06%; No. 2 yellow, domestic, spot, 1.12; cob corn, 5.2525.50. Oats—No. 2 white, domestic, spot, 62 5wB3338 FEERE S8 P Bl imentenura Wi pem 24 2 ©>p0000P! g 5 SabEbEhs ist N Pic Ist pt Hocking Val Ry. Horni Sig Mfg A'. Do. AA. At every traffic 1 Creole 9Vs . 53‘3.‘.;3." fi‘.‘é, s i3 147V gi}:‘, No: 3 white, domestic, spot, 60a Q ol e a‘l otor 2 M ount Gt 1 Rye—Nearby, 1.10a1.20. SI yo‘lr m T P e R A s | arriving here quantities only, m" it is more. than ample for the demand, w l that which is being supplied mostly by truck e from nearby points, a few carloads being B ll ° l I icker, smooth- qua S ans Prove it power. itnow 3 in cold weather. received. There is not enough business passing to establish prices on the vari- . THE WONDER MOTOR FUEL L0OP; “bkgs 0000003 00pO0POOO000D | Bo.. ..o Int Mili Go ist Kaufmann D S pf. T CREAEN $a883a 85555 o 2323zt e s RS S - sBuSEY ous kinds on merit at a range of 17.00a 19.00 per ton of timothy or clover hay. Sales. STANDARD OIL ISSUES AND FOR- | Straw—No. 1 wheat, 11.00a12.00 per in units.” MER 8 IARIES--STOCKS. |ton; No. 1 oat, 12.00213.00 per ton. Dairy Market. Live poultry—Turkeys, pound, 37a43; R | old, 30a36; young chickens, 34a4: r Ond thin, 20; ol hens, 20832; cApODS, ST. AUGUSTINE PALM BEACH . Do. pt U 8 Gypsum Co. o o Vesta Bat Co pf Westy_Ch Pr cp.init... . “Tax free 8tockc dividend of one-half share for each 10 shares held. BEEREEE, H s Bent. 15, Sales BONDS. Vs 3 nds. 443 Dec 192 99 21-32 UCABID pap o A '83. 87 T 331 Aled B @hadbeoat B 4 125 Sep 3 e k i B % 9 9626 Alum_ Ltd B "48 FOREIGN EXCHANGE. (Quotations furnished by W. B. Hibbs & Co.) Nominal gold Selling checks vaiue (or pan). " todey. 193 90%s Son > 838 - — P L. 200 Imp O Y . » TREASURY CERTIFICATES. e, §, B B | 20050 Ol Toosters, 17530 Towis, each o i DAYTONA BEACH 2.5 20; capons, 33a32; ducks, 25a30. onu"no AT 5.5 T‘"" Bk b m'n -Recelpts, 711 cases; native and 28; rolls, 25a28; process butter, 41842, r . s . i The trip is packed with interest. New luxurious all-steel coaches. Courteous drivers, Sf arranged. Lowest 40a80; pigeons, pair, 30a35. , Dressed 5poultry—‘rurkeys. pound, 35a 45; old; 25a35; young chickens, 30a35; old and mixed, 25a30; old roosters, 18a ST. PETERSBURG . X s e T i 28.35 JACKSONVILLE. . 20.50 g Sl v, R, NEW through motor bus service to Florida tes toda: Butter—Good st 8% S| /A over theroutes of Mitten Tour, Camel City Coach Co. p t S0s ATy prind Richmond-Washington Coach Co., and Greyhound Lines. fares ever offered. Full information and tickets at INTERNATIONAL TOURS TERMINAL 1421 Pennsylvania Ave., N. W. Phone Metropolitan 5314-5318 > 11 Bankers’ Acceptances Advanced. NEW YORK, February 15 (#).—The fourth advance year and the second this week in rales on bankers' accept- ances was made today. New York dealers increased bid and asked rates 14 per cent, making the new rates 5% cent bid and 5% per cent asked for 0-day acceptances and 5% asked and :I!‘fiezlfl for five and six month accept- wolesShe Shaans85853Ns: SO sSeeste T W o1l mq?!u S3ESRSRES B [ORPNG: — ST o