Evening Star Newspaper, April 1, 1929, Page 13

. NEW YORK CURB MARKET ; d Received by Private Wire Diréct to The Star Officg" ; INHEAVY SELLING|e¥e, e T B | Fhmes B b b thel 38 ' g? ure Is Acute Against| 3% : c Fi| nvestment Issues—All Groups Are Hit. | of, investing temporarily | block of $10,000,000 worth of bank ac- | deposit. on ) mm have short-term | ceptances. Despite the reduction, how- hu?:llm offer m m m 7 T i of fhis aney ire betng | S to. 535 Fer ont on hece uimars | "0 PORd mATkeial ' ? - ¥ Rmzn call money market \II%“ able securities, c:glcgnmtm in rr:; rblineon e 85 FEENEE i7¥77 BY HARRY H. BECKER. Soecial| Dispatch to The Star. YORK, April 1.—The curb mar- ket suffered an acute relapse today, fol- lowihg the three-day suspension of ac- tivities, and broke badly again in nearly :l!nl sections, nlthough‘ volume did not 0 0w any great expansion. L . A feature of the selling was the heavy AR KR pressure against stocks of the so-called % _ investment type. These were disturbed FEREEF -s8.u282zunline s > 1B | ; Pis < see mvmux;z:n;‘ bargains. me, to nth;':uu. o Nt G £ 4 prac “‘others’” thoug] volume sof commercial 1§ DECLARED WISE| —=== | gn e et s Sy B Bl v o o s ] ) =Y Ke TH S. VAN STRUM. pla; an fmportant par ping | al lma:zddui‘msmem(ew years, gmte;s%“lm;) i A ? 4 pd T fres g : b h s quarterly dividend to 103,571 NEW YORK, April 1—For - many of thess same. emsonay e rre 18 johy Bnancig | common_stockholders, an. increase. of been t1 to check the overprcduction - . Paper. mercial ;1 {or pora tockhold berec g . Paper. g . v ry - inyest. | 880 stockholders = numi 97,443 Week Held Test of Price ”mg&hu-::rn ‘m"f}% I e ts who',also prefer not mn;""'r&???i’uuy e Trom sszr:m Average holdings were 68.7 common tion ! their. capital in. the case of a 1 is well secured. - il addition, the Steel Corporation had 65, 4 Levels | but-the individual Siates, thoush reai- | severe upsct in the security market smaller Investors find that the | 979 preferred stockholders at the clos- i ] ik E i ‘|1sing the ultimate effect of overproduc- |y egiing’ in commercial paper and oank | funds while waiting to be. inv dend, compared with 67,113 three . —— , did not work in unison. When pepe 3 permanently s in '.mwmmm':l‘kog months previously. BY IRVING FISHER. savings bank. e the interest paid ——ee 7 : , um.udnc"g!fifl:mfl“m‘m ,g’u,:m‘,;fl' ances was unexpectedly reduced Y of [ on such deposits is naturally lower, the | Continuation schools in New York NEW_HAVEN, Conh.,’April 1.~The | tion was caused by the purchase of one able to withdraw the full amount of his ' to 17 years old. performance of the New York stock ;:.'odmuum“":nu%“hem#;;&%{::fm‘m“, lief two events of major economic jm- |duction when President Hoover made portance. 0:1‘:* the statement' that the executive de- 22, ¥ Wn\ level of security prices out|due to ‘3? that many . businesses n distributed its Rebound of Stock Prices Last | mas e Jarger ol producers have| Bank Acceptances and Commercial - | vesiom Who, Pt Uaete Toney e om- | 2187 over the Decemiber List, A year il i of a sirinkage in the ::Fer gent for short terms while shares against 706 in December. In % the next few months are in- mmuslacmry place for their liquid | IN8 Of its books for the February divi- I Oklihoma curtailed production, Texas | ceptances. o Spectal Dispatch to The Btar. *The® Amerloan. Petroleum Insticute, | 1 Per cent. It was said that the reduc- | invesior has the adyantage of Being | State instruct 75,000 employed boys, 14 market last week threw into sharp re- | was considering plans to curtail pro- was the precipitor partment of the Federal Government was against further leasing’of ofl Jands gg&;&flm&’: unlesk ordered by Congress. Ca e by the drop in market vajues of their holdings. Goldman-Sachs and Trans- america were especially hard hit, New- mont Mining, which is generally suj posed to own substantial amounts of the leading copper issues, also gave ground readily. ‘The widest drop at the opening oc- curred in the International Telephone & Telegraph new. It closed Thursday at 923; and opened today with 18,000 shares at 85's, a drop of 8% points. Then it rallied swiftly, but turned down- ward again. Electric Bond & Share was another heavy sufferer in the utility ‘division, while severe losses were also undergone by American Superpower, Electric In- vestors, Northeastern Power and Ameri- can Foreign & Power warrants. Good news was entirely ignored. United Gas Improvement paid no attention what- ever to announcement that changes in the by-laws, to be acted upon at the annual meeting May 6, provide for elec- tion' of a president by directors in Standard instead of by stockholders. In the motor group, Ford of Canada, after brief steadiness around the pre- vious closing level of '1120, broke more than 75 points. Auburn showed resist- ance, while Pirestone in the tire section held firmly most of the time. Aviation shares came down 1 to 3 points and the radio favorites even more, especially Grigsby-Grunow. Other stocks to display extreme weak- ness included Libby Owens Glass, Tub- ize Silk, Checker Cab, St. Regis Paper, Haygart and Gold Seal Electric. Oils also were offered freely, but the de- clines, with ons or two exceptions, were much less severe than in other pwl of the list. COTTON PRICES FIRM ON INITIAL SALES Considerable Covering After Early Decline Restores Tone of ‘Market. By the Associated Press. NEW YORK, April 1.—Cotton opéned steady today af unchanged prices to a decline of 6 points. Active -months sold about 13 to 18 points net lower in the early trading under local and Southern selling. This seemed to be influenced by a favorable view of weather conditions over the holidays, but-houses with Eurcpean connections were moderate buyers. There also was considerable cov&g and prices stead- led up 2 or 3 points from the lowest by. the end of the first half hour. July contracts sold off to 20.04 and rallied to 20.07." Trading was compara- tively quiet. Owing to Easter holidays, Liverpool was closed today, but will re- open tOMOITOW. . 2. M B WHEAT IS LOWER IN EARLY TRADING 3 Crocker Wheeler 4 Elirtiss Aero 8 Curtiss 4 Daniel Reeves. 1Davis Drug Al % Deers & C. 8t Lt 3 St Ltd rts wi 1 in 9 Douglas Aireraft, 1Dregser Mfg A I 4 5, ol & w m Pow Cor... vans Wall Lead: abrics Finish 4 Pairchild Avi: esnsans IS0, 4 Fo: 8 Freshman Chas’ 6 Gen Bak Bak Fireprig n. Laund M: Pub Ser 36 Real & Util Cor t_Col 1 Helena Ruben 20 1] Hiram Walk G & W. 71 2Karstadt R ... § KevstoneAircraft 4 Koister Brang 2 Lake 5113 pi a El pfd ww D Shain "Store Stock., 34 19 6 Gont. Diam, Fibre wi. a7 urt ying 1Curtiss Reid A Bf wi N orBo 850 2mun! 32! ool & La 3 Wocdley bet 0 Sair'n S SRANRARR O TOVES AP FoR- 100 Anglo Al Ell . 100 Bucke: . <EEELY, Sales in thousands, 8 Abitibl’ P&P Ala’ Pow 4% Ala_Pow b3 '86.. 21 Alum Co Amer 5i 3Alum_Ltd 63 *48..... 10Am Gas & EI 55 2033 947 943 26 Am Bw & Lt Gs 2016 10515 by o etinEegs 900000 ISR E el 558 001 eyt b o e g et bt 4 S IR0 ey, & L 5 8228328208 2288053: 5 It Stat Ut 85 A 66 95 s "49. 3, 15 5 SR ta 336 4305 OO0 £ 53 I~ Hrsormuns-1sS! &! i S0 B o R i ron 2ugo: L e ] RREESg 2200 g3 vREasRtE. &3 2378 ga 98 festern P 5128 118% Wheel Bl 4755 B '3 §1ta &1 Wisc Cent 58 780.... 9734 2 | sates POREIGN BONDS. in thor 3 3 “~10 Ant! City ™8y _'58 '90% 90% 11 Bank Prussia 6 '30.. 9613 7 Buenos Alres 718 '47100 = 100 4 Cauca_Valley 7548, 90 0 Free St Prus 6s 52 874 '34. C%‘l 3 783 2 i i ing closely . upon the warning of the Federal = Reserve Board that ° the large .absorption of credits in security ened commercial ity. iThe was the sharp re- bound of - stock quotations after the slump. - suct& dl:grin;ln:‘; Irving Fisher. on un hamper .the move- ment of security prices to their .true level of value. The immediate recov- ery, as soon as the choking grip on the call loan market was relaxed, is strong evidence that common stock prices were not, even before the break, at levels so 2 | far out of line with values as seems to be assumed by the Federal Reserve Board. The crash was,. therefore, an artificial rather than a corrective eco- nomic movement. It is easy to criticize after the event. We should all recognize that, without the reserve system and its tionary policies of past months, the great spec- ulative wave would most likely have risen very much higher than it did and ultimately have brought the worst panic in the history of the United States, ‘The Federal Reserve Board at first tried to be gentle in its deterrent policy toward the stock market, then it sud- denly acted drastically. .There was per- haps something of a mistake in each policy, at least as to degree. President Mitchell of the National City Bank, in my opinion, acted wisely in what _he did. I hope'the Federal Reserve Board approved of his action. Market Movements. ‘The compact survey of New York Stock Exchange movements of common industrial shares is given below in price indexes (1926==100). There are two in- dexes of market price movement. The 4|first . (“Shares Outstanding”) repre- sent8 all common industrial shares list- ed on the Exchange, the importance of each stock being considered according ta the shares in existence, or outstand- ing. The second index (“50 Leaders”) shows the price movement of the com- mon industrial stocks most heavily dealt in during the week, this list changing weekly with the shifts in trading popu- 9915 | larity. The “Shares Outstanding” index shows what a substanially representa- tive $100 worth of stocks in 1926 would now amount to if held unchanged since that year. The “50 Leaders” index shows the result of reinvesting the $100 every week in the market favorites of that week. ‘The last column of the table gives the rate of return on the week’s 50 leaders at current prices. ‘Rate market o leaders. return. Best Stocks Lost Leas R Plan Production Curtailment. The institute soon afterwaml went into conference. Within two weeks they announced their intention:to shut:in 250,000 barrels of ofl daily and thus to bring- production down to “the daily average of 1928 This would mean no change in the Mexican production; for that is already below its 1928 level, and only: small reductions in most South American flelds. United: States produen .. tion, however, would. have to be cut 200,000 barrels daily in order to be brought down to the 1928 ayerage. The plan dzgends for its accomplish- ment upon the. co-operation;of five cominittees - representing operators in the five principal producing centers of the Western Hemisphere — the United States, Mexico, Colombia; Venezuela and Peru. It is hoped that curtailment will be 50 per. cént’ effeetive by April 1 and 100 per cent by July 1. Entitled to Fair Return. E. B. Reeser, president of the insti- tute, pointed out that the industry has not earned over 3.25 per cent in its in- vestment for the past four years, and in 1927 earned less than 1 per cent. He sald, “The plans which have been adopted will result in greater profit for the industry, but personally I do not anticipate any general advance in the price of gasoline to concumers at this time. There will probably be a narrow- ing of the margin between the price of gasoline at refineries and that which consumers % Y ALE LS ‘The investor has many problems to consider when studying oil stocks. ‘The overproduction menace is apparently going to disappear., Althnus)‘:_ produc- tion for last week increased‘over the previous week, leaders in the: indus seem convinced that cuitallment can effected, -and -the recent. strength in ail swek.l‘mwofl"mlfi ‘viewpointe . Other Influences. The. investor in ofl*securities .must | temper his enthusiasm, however, Gaso- line and crude oil' prices a ow at low levels. As long as, pricessremain low the 30,000,000 .daily consumers of those products will not object to the curtailment of production. On the other hand, the profits of the industry cannot be increased very far with prices at present levels except in so far as more efficient refining methods are used. If the price of gasoline and crude ofl is raised to allow the producer his fair return, to which he is unquestionably entitled, there is little doubt that the millions of consumers Will not feel so sympathetic to “conservation.” In addition to this consideration the investor must keep in ‘mind that oil stocks are often affected by the broad swings of the stock market. Only last week ofl stocks which had advanced considerably when curtailment news was heard dropped precipitously when stock prices suffered a bad break. Al- though the olls recovered quickly ? | eriough, these temporary upsets caused | by market gyrations are to be expected, 1o matter how favorably the industry itself is progressing. ' Short-Term Investments. TInvestment frusts and individual in vestors who have sold out their speé- |, ulative securities have been faced with E are celebrating our 60th birthday today—the sixtieth year in which no client of ours has ever suffered loss. Through two wars, and many periods of inflation and oppression, the firm basis on which our business was founded in 1869 has remained unshaken. The policy which has given us this notable success continues today—conservative in- vestment in thoroughly-tested income-pro- ducing property in the City of Washington. And in the coming year we anticipate even greater growth, as more and more people learn to profit by the values in the 6% First Mortgage Notes we offer. "Investment in these Notes not only gives you the comfortable assurance of absolute safety—it earns for you an attractive and unfailing return. Start with us on our sixty-first year. SWARTZELL, ReEEM & HENSEY Co. MORTGAGE BANKERS 72715 STREET . N.W. WASHINGTON D.C. ‘YEARS WITHOUT LOSS TO AN INVESTOR Below are shown index numbers of prices of common industrials on the New York Stock Exchange, arranged in classes derived from Moody's ratings. Baltimore Markets ke (1926:=100) m!vl::,) mediate.) lative.) Week ended— 2 Chicago Pit Brices Are Influenced| i} Eb : 18018 ! “55.}5_.; ies. by Selling on the Stock 3 ww—With warrants, - Exchange. The business man asked— “What is your opinion of " CITIES SERVICE COMMON?” It i 3 Minne Hon Rex .... 66 By the AssociatediPress. 1] Migsour! Kans Rivel. & CHICAGO, April 1.—Wheat values underwent a decided setback early to- day, influenced by rain and snow in domestic wheat territory and also by stock market weakness. Monthly un- ielal crop estimates issued today were about asdexpected, being approximately FEES Special Dispatch to The Star. BALTIMORE, Md., April 1.—Potatoes, white, 100 pounds, 75a1.25; yams, bar- rel, 2.50a4.50; sweet potatoes, barrel, 1.50a3.50; asparagus, dozen, 3.00a9.00; beets, crate, 2.5082.75; beans, bushel, \ 5 S BT g55uEasEEEs Rt dm 332488 E3: bRt <ot Lk gESuEEREEES o tcanscan %1, to % lower, wheat afterward ime as the 10-year average. Open- wed a material further drop. Corn and. oats were also easier, with corn starting unchanged to % off and later ¢ all around. - Provisions inclined rd. ide from bearish weather and stock et developments today, wheat trad- emanifested chief interest in April crop estimales by leading private thorities here. A typical summary of these unofficial reports said present indications were that the domestic ‘Winter wheat crop passed through the Winter with even less than average damage and et this time promised a yield of about 565,000,000 bushels in much of the Southwest. The crop was backward, but that drawback was fairly balanced by more than usual sub-soil moisture in that region. .On the other hand, with Spring ‘wheat seeding going on in the North- ‘west, and soon to begin In Canada, the drought situation in the Canadian prai- rie provinces became more alarming, and unless rains intervened soon, will ke bad for the start of the crop. If the rains come in seeding time they may cause delay to such an extent as to te- suit in more than usual fears of frost damage later. CHICAGO LIVE STOCK MARKET CHICAGO, April 1 () (United States Department of Agriculture) —Hogs—Re~ ceipts, 32,000 head, including 13,000 direct; mostly 25a30 higher; top, 1185, paid for a number of loads of 170-210 pounds, largely 11.60a11.85; markets for_desirable hogs scaling from 170 to 300 pounds. Butchers—Medium to chalce, 250 to 300 pounds, 11.40a11.75; 220 to 250 pounds, 11.40a11.75; 160 to 200 pounds, 11.00a11.85; 130 to 160 pounds, 10.00a11.80. .Packing sows, 10.25a19.75. - Pigs, medium to .choice, 90 to 130 pounds, 9.00a11.00. % C attle—Receipts, 11,000 head. Calves—Receipts, 4,000 head. Steer and yearling market 25a50. higher;” active at advance. Best heavies, 14.40; year- , 14.10. She stock stronger, espe- y heifers. Slaughter classes—Steers, good and ¢hoice, 1,300-1,500 pounds, 12.75a14.50; 1,100-1,300 pounds, 12.75a14.50; 950- 1,100 pounds, 13.00a14.75; common and medium, 850 pounds up, 950a13.00. Fed arlings, good and choice, 750-950 Sund& 13.00a15.00. Heifers, and good chg:‘e, 850 pounds down, 12.25814.00; gomimon and medium, 9.00a12.25. Cows, good and choice, 8.50a10.50; common and medium, 7.00a8.50; low cutters and gutters, 6.00a7.00. Bulls, good and plce (beef), 9.35a10.50; cutter to jum, 7.7589.35. Vealers (milk fed), jgood and choice, 10.50215.00; medium, 4 10.50; cull and common, 7.00a9.50. er and feeder steers, good . (all weights), 11.50a13.00; com- and medium, 9.75a11.75. heep—Receipts, 10,000 head; market !rg gg’onl mczg‘ higher; ;umreg to ce, 856295 poun 17.00a17.10; ’choice, closely held sbove.17.50; sheep Jlambs, scarce quotable; choice, 93 Elec 11 Nor Amer 2 North Amer Cem.... 00 3 Petrol Corp 1 pd. 11 Phelp Dodge Col 7 Phi 2 Repett{ Candy . } Reynolds Metal k1A JsBate @i’ & Lt 1 fe-T-Stat .. T . . o Bansn9b900 7 2009 <3aE! ufi-.—flflu&fifi.n-uw—q-;umuos oo B 55 Sgaadadcig) % J=C GoggSsss Do 22282 3! £ SE oot pseiasin 4959353 e [R=TOt e 7 20! “Aviation m f% | Drints, 51a52; blocks, 49a51; ladles, peassaniivg B8R RER8R238ARN.. 33 e, RSEE 5 E RS F 288 2.00a4.00; cabbages, hamper, 3.0081.60; carrots, bushel, 1:50a1.75; celery, crate, *12.00a3.00; caulifiower, crate, 2.0082.50; eggplant, crate, 2.00a4.00; kale, barrel, 90a1.25; lettuce, hamper, 75a1.75; lima beans, bushel, 4.00a5.00; onions, 100 pounds, 3:50a5.00; oysterplants, 100, 8.00a10.00; parsni) basket, 60a75; peas, bushel,” 2.00a2.75; peppers, crate, 0; radishes, bushel, 50al1.75; -ate, 1,60a3.50; spinach, bushel, . crate, 1.0085.00; basket, 50a65; apples, bushel, 00; - cranberries, half barrel, 7.00a grapefruit,’ box, 2.00a3.25; tan- gerines, half box, 1.25a8.00; oranges, box, 2.25a4.00; strawberries, quart, 15850, Dalry Market. Poultry, alive—Spring chickens, pound, 46a48; young chickens, 40a45; thin and poor, 25a28; old hens, 31a33; Leghorns, 30a32; ducks, 20a32; guinea fowls, each, 50a1.10; pigeons, pair, 35a 40. Eggs—Receipts, 1,909 cases; native and nearby firsts, free cases, dozen, 26a 26%; current receipt, 21a23; butter, good to fancy creamery, pound, 45a50; 38; store packed, 30a31; rolls, 30a32; du.x;yz prints, 30a32; process butter, 41842, Live Stock Market. Cattle—Receipts, 600 head; fair sup- ply, market steady. Steers, choice, 12.75 216.25; good, 11.50a12.25; medium, 10.50 211.25; commq 8.0029.75. Heifers, choice, 10.75al good, 10.00a10.50; i ) 5588.75. Bulls, g good, 8.5029.50; common to medium, .00a8.00. Cows, good 9.00; falr to good, 6.75a7.73; common avies, 12.40; . medium, . roughs, 7.50a10.70; ~light pigs, | pigs, 11.60; Western hogs, 10a20 higher T quotations. Calves—Receipts, 500 head; light sup- ply, market steady. Calves, 5.00a16.00; extras, 16,50, Hay and Grain Prices. ‘Wheat—No. 2 red Winter, garlicky, fw spot, 1.26%; April delivery, 1.26%. Corn—No, 2 export, April delivery, no uotation; No. 2 yellow, domestic, spot, .0021.08; cob corn, 5.00a5.25. Oats—No. 2 white, domestic, spot, 57a88; -No. 3 White, domestic, spot, Rye—Nearhy, 1.10a1.15, Hay—] none, i+ arriving here in limited quantities only, it is‘more than ample for-the demand, which is being supplied mostly by truck X g‘m nu'rg points, a few carloads be- ey ices on various kind on merit at a ra of 15.00a16.00 per ton'of timothy or er hay. : Straw—No. 1 wh .00212.5¢ T ton; No. 1 oat, 12,5‘0‘.?‘1:?020“9:}' flgl.p' record & | prets, will temperature of 1,000 degrées made ollllll“fl_hlmmgh,qu 0089.55; common, 7. .75, to choice, 9.75210.25; fair to | 155 to choice, 8.50a | 102 to |1 (Copyright, 1929, by Trving Fisher.) Money and Prices Special Dispatch to The Star. NEW HAVEN, Conn., April 1.—The furor in last week's stock market had no repercussions in commodity markets. In fact, it looked rather as if interest was 80 intensely concentrated on securi- ities that only casual and routine atten- tion was given to commodity tradings. The purchasing power of the dollar continues stable. Interest rates, while strong, showed none of the skyrocket- lns which call loan rates indulged in, indicating that the call loan market was artificially and drastically choked by the Federal Reserve Board's. policy. Commodity prices in England 8nd France revealed a slight upward ten- dency. rioe el and In the purchasIng price level an pure of the dollar are given below ‘or the United States for various periods, based 34a | mainly on Dun's quotations, The aver- age for the year 1926 is the base used. % Whole- Purchasing Week ended— March 29 h 32 pratanansan A TR S AAAAA Cable reports from abroad indicate flnt;llnwml ‘European wholesale move- England. France, Ttaly. SSFsasasa: Sotoneans: 95.3 10000, X by Irviag Fisher.) e Petroleum Prices Unchanged. NEW YORK, April 1 (®)—The av- erage price of m?dro pnt.rol:\:m in 10 ptfiul:gl fields was unchanged last week from thoofitmmu week at $1.65 S, o o P St T, e X Bor“blmL bt at refineries was ?’z‘zmm"t:iumm'\fn :vek ‘while serv- ice station prices were unchanged at 10.47 cents & gallon. e e * CHICAGO DATRY MARKET. April 1 (P.—Butter— 12,999 tubs; creamery ,; extra firsts, 4415a45; firsts, 14415 ; nds, 43a43%2. sl l::::r: recel %flg_.,l‘l( cases; o, Zoot in handling. Shee Domartusy fndex. from 1998, And the finmzmzl ‘ of! your nd on conditionsin any one | ::flmy or uya::e I o Thereare more than 100Cities Service expert replied—+<a good investment” Financial writers frequently recommend Cities Service Com. That this advice is well founded is evidenced by the fact that thousands of owners of Cities Service Common stock are reinvesting their dividends in additional shares. “Money talks,” and the money invested by these men 20d women attests more plainly than words their confidence in Cities Service, its prospects, its policies and its management. Dividends on Cities Service Common stock are paid monthly, * which' eriables an investment to grow with surprising rapidity when dividends are reinvested. This plaa of compound divi. . dends originated by the Company has started many modest "'investors toward financial independence. Y L. DOHERTY & COMPANY Southern Building, Washington, D. C. Branches i Principal Clties o o o e e e o e e e e Southern Bldg., Wash.. I C. ; | Send copy of booklet describing the lavestment pomibilides of Cices Servica Sacurices.. | D8} o e e e e e e o