Evening Star Newspaper, April 28, 1929, Page 31

28, 1929—PART 2. 7 WHEAT CLOSES LOWER. | VIRGINIAN NET RISES. CHICAGO, April 27 (#.—Wheat Railroad's Q:l:;;: Earnings Equiv- prices tumbled down today to more than | 13 cents a bushei under recent top fig- bvisbi b s ol g THE SUNDAY STAR, WASHINGTON., D. C. APRIL INVESTMENT TRUSTS AIDED consulted, and should be, before making ’\ and pigeons holds steady at 50 to 110 BULL MOVEMENT " BONDS TO MATUERE | clally of top-grade stock the live cattle | each for the former and 35 to 40 a pair | market holds firm but values show little | | for both young and old of the Iatter. | change from last week, choice Spring | lambs scarce and stock weighing 40 to Egg Market. | .| 45 pounds meets with ready sale at full ing commissions for unlisted securities. | receipts of native and nearby purchases. It might be well for intending op- erators in local securities to look over the “we offer” advertising before plac- | prices. ISSUE ALSO CALLED i These Great Pool Operations—Not 3 All Conductecl Honestly. Pepco 5s and W. R. & E. 6s of 1933 Soon to Pass—Mc- Kee Convention Speaker. BY EDWARD C. STONE. Two important local bond issues are about to breathe their last and end long and useful service to Washington investors. The Potomac Electric Power Co.’s first mortgage 5 per cent gold bonas will mawre on June 1 of the present vear and of course will go out of existence at that time. There are $1,700,000 of these bonds out- d by Washington in- vestors, 50 the im- portance of their maturity is readily seen. They are listed on the Washington Stock Exchange and have always been popular here. They have not been as active this year as formerly because of their early maturing date and partly because of the temporary lack of in- terest displayed in nearly all bond issues. They opened 1929 at par, their high for the year is also 100 with the low 993 and the last sale the same. At 993, they yield 5.50. ‘The Washington Rallway & Electric Co.’s general and refunding 6s of 1933 form the other issue soon to pass. The bonds have been called at 102 on May 1. These bonds are also listed on the local exchange and have experienced wide trading since they were placed on the market. They opened the year at 1021, later dropped to 102 and the last sale was recorded at 101. At 101 the yield is 5.40. Holders of both bond issues should bear in mind the expiration dates. In connection with calling or maturing of every bond issue there are always in- vestors who delay acting only to find out later that interest has stopped. Henry H. McKee. Further time is then lost in making |ing sound reinvestments. Notices have already been published in the press and forwarded to the stock exchange in regard to both issues. McKee Made Convention Speaker. Henry H. McKee, president of the Na- tional Capital Bank, has accepted an invitation to address the District of Oolumbia Bankers' Association at the annual convention at Montauk Beach, Long Island. He will speak on the first day of the convention, June 20, his subject being “The Value of Secondary Reserves.” Mr. McKee is one of the best speakers in the association, as well as one of the best informed bankers in the city. His subject is one in which local bankers are particularly interested, and a discussion will follow his remarks. It is the ailm of the committee to have other local speakers, who will devote themselves especially to local problems. In addition to the out-of-town speak- ers, it is hoped in this way to round out an unusually helpful program. Railway Preferred Leads Market. Washington Railway & Electric pre- ferred led trading on the Stock Ex- change yesterday, the day's turnover reaching 60 shares. The stock opened ;: :7‘1 but all but 10 shares sold at a odd-lot sales in Capital Traction were recorded at 99, Potomac Electric Power 53 per cent preferred came out BY LONG Millions of Capital Find BY I A. FLEMI last two years has been very rapid and | the result of the long sustained upward | movement in the New York Stock Mar- | ket that has made for the most sen- | sational success for the well managed, reliable so-called trusts or pools. | Two $100,000,000 corporations have | ! been organized, one | pany, one $75.000.000 and one $90.- 1 000,000 and others are on the sto | with predictions of ‘movement | further enlarging as this method of | stock trading becomes more and more | Federal costly. with the spread of the story of gains | made r\rculllted o amon, e generally. One' m‘: have a large modicum of | bonds. faith to efface himself or herself en- | bers of tirely in the purchase and sale of in- vestments. Old-time brokers will give a customer all possible information at hand regarding a corporation on request, but they 1{sitate to recommend this or that stock, being fearful of the af- termath if the net result is not satis- factory. It is generally understood that the investment trust of today is patterncd after the English idea, which favored the purchase of securities by a group o men and then by agreement carrying the intangibles for a stated period, with the regular dividends, as declared, be- ing distributed pro rata among the syndicate. It may be that the growth of the in- vestment trust on this side of the At. lantic will not reach the proportions that are expected during the next few rs, especially if there should be a natural two-sided market, in which such sizable profits as have been made in the last two years on Wall Street will be impossible, even to important traders. Large Banking Houses Lead. | In this movement a few large in- | vestment banking houses have taken the lead and in the “field” that has fol- |lowed there have been many entries lin which faith and honest intent have | been lacking. Leading concerns in the business today are the Goldman-Sachs Trad- Corporation, $100,000,000; the Petroleum Corporation of America, & little over $100,000,000; Selected Indus- tries, Inc., $90,000,000; Tri-Continental Corporation, $50,000,000; Prudential In- vestors, capital $20,000,000; the Van Swearingn Bros'. great Allegheny Cor- poration, operating in rails generally, ' with probably 200 other concerns, good, tair, bad and indifferent. The Commissioners’ Code. i A code for the conduct of investment corporations has been drawn up by the security commissioners of 37 States, seeking to regulate the formation, capitalization, rules for government, etc., including the proviso that the “officers, directors and management should make an investment of their own funds sufficient to secure a per- sonal interest.” It is advised that periodical state- ments be made, reserves establsihed, a report of any privileges accorded the managers, the cost of securing caj ital and other information calculal to keep the business of these corporations in some check. ‘The committee further expressed the belief that all States equipped with blue sky laws can correctly annalyze such corporations operating in their States and bring offenders under court restraint. The code aso indicates that com- panies doing an investment trust should specify in their charter or trust agree- ment an accurate statement of the at 107, while Washington Gas Light stock sold ex dividend at 1063,. e Merchants’ Bank & Trust Co. was strong and active, 52 shares changing hands at 154. National Bank of Wash~ ington sold at 315. Other issues ap- pearing on the board were Mergenthaler * Linotype at 107!, and Federal-Amer- “h the bondivi division' Washington Gas €6s, Series B, sold at 104’; and 104%, Washington Gas 5s figured in a fair- sized turnover at 1002, and $4.000 Rail- | way & Electric 4s registered 86%;. ! ment trusts, the big well mana; Member Bank Loans Decline. Regarding the bank credit situation, the Federal Reserve Board's latest re- view, issued yesterday, says: | Between March 20 and April 17 there | was a considerable decline in the volume of member bank loans to brokers and in the bank's holdings of investments. Loans chiefly for commercial and agri- cultural purposes showed a rapid in- crease, and at the end of the period were near the high level of last Autumn. During the same period the volume of Reserve Bank credit in use declined further as a consequence of additions to the country’s stock of monetary gold. { A continued rapid reduction in holdings of acceptances carried the total to the lowest point since the Autumn of 1924. Security holdings also decreased some- what, while discounts for member banks increased. Open market rates on bankers’ ac- | ceptances and commercial -paper in- creased further. Rates on collateral loans increased sharply in the latter | part of March, but declined in April. | yuch mcney out of the banks, coupled Wil Bonds Come Back? After the great bond market of 1927, the fashion in securities changed, and common stocks grew rapidly in favor. ‘Today, aetording to Barron's Fmancial ‘Weekly, “nearly all the leading security- selling houses are directing much of their attention to stock issues. Conser- vative security-selling organizations that never handled more than a modi- cum of the better class of preferred stocks have now revamped their buying departments in order to keep in step with the times. These houses are just &s strict in their investment require- ments, allowing for the difference in standards involved, but they are plac- ing more emphasis on earning power than on security. More attention is paid to the management of the cor- poration seeking capital than to the “prick and mortar’ of the plants.” Is this preference for common stocks permanent? “The only answer that can be made to this question is that finan- clal history has witnessed similar spec- ulative periods before, when unusual prosperity in this country turned the interest of investors largely to common stocks, as In 1919 and at the beginning of the present century. Each time the bond market has eventually come back into its own. That history will repeat itself partakes less of prophecy than of sound reasoning based on historical perspective.” DENIES MERGER RUMOR. NEW YORK, April 27 (®).—Walter C Teagle, president of the Standard Ofl Co. of New Jersey, and a director of the newly organized American I. G. Chemical Corporation, a branch of the German die trust, explained today that Standard has no financial interest in the new company. Mr. Teagle added, however, that Standard “has had close relationship with certain branches of research work of 1. G. Farbenindustrie which bear closely upon the oil industry. Two ears ago it made a contract with I, on this line, and as recently an- nounced, it expects to broaden this re- Jationship in the future.” Standard is understood to be par- ticularly interested in the dye trust's work in the production of synthetic gasoline - . Japan is using more products from this country than in several years. ‘The per capita purchasing power in Haiti is only $4.37. plan and policy to be followed; should give the amount of the agreement with investors and the personnel should be of good business repute, It should also be provided that the capital assets cannot be distributed during the life of the agreement. State commissioners may also ask for further information and likewise may get it. But the recommendations are not laws. Not a Certainty. It is not likely that history will re- peat the 1928-9 success of the invest- cor- porations operating on the level. No man or group of men may hope to find such a bull market in the near future. Perhaps they may find a good bear market, but the public does not fancy a bear movement or will it par- ticipate in its operation. Pools have been formed time and again in stocks, little and big, and have been successfully operated and con- ducted with loss ever since trading in stocks reached sizable proportions. ‘The ticker tells its daily story, and the attendance in brokers’ offices in- dicate whether the tale is one of ad- vance or decline. The public does not rise to & weak market. Old-time traders prefer to have sol thing to say in connection with the market operations. They have found, through long association, that their brokers are honest, faithful servants and are possessed of as much, if not more, information than anv one else as to the vital facts of securities or that they may obtain it. Bankers, as a rule, do not favor the investment trust idea. It has taken too with the general speculative movement all over the country, although most of our financial institutions are amply able to attend to the demands of their customers in trade and the Reserve Board’s threat seems to still have its effect on Wall Street. They admit that it 1s possible for a well manager cor- poration with big financial backing to conduct an investment business with profit, also that it has been demon- |nnled that losses are also possible, Nothing New in Pools. ‘There is nothing new in pools. Their operations have been on a more lim- ited scale than the investment trust save where two or more large inter- ests were brought into contest with| each other, when there have been some | very large pool movements. The greatest secrecy is always at- tempted in operating a pool, leaks being dangerous in the extreme. Practically all times there are op- portunities for safe investment, never for safe speculation—there is no such thing. In the recent prolonged activity in | Wall Street real investment securities | ’ ve . |in the strictest te Growth of Investment trusts in th:| in the strictest et PR, VUG NEEC | and closed o lower levels. dropped considerably under par and Bonds are now coming into demand again and moving up, as they usually $80,000,000 com- | do when stock trading is slow. Increased Offerings of Securities. The prolonged bull market and the fever of speculation increased greatly | more | the offerings of securities, also good. fashionable, as it will in all probability, bad and indifferent, making it & dan- word of mouth |gerous matter for the uninitiated to < make selections of desirable stocks or Employment in| BALTIMORE, Md., m, bonds, Were neg- | and closed easy with Even Government issues | ‘made financing was more selling 34 to 40 as to sale at 25 to 26. Old 33, but Leg to 2 slow sale at 18 to 20. But bankers and brokers, mem- recognized exchanges, may be Special Dispatch to The Star. to increasing receipts as slackening in demand owing to the high prices prevailing the live poultry mar- ket slumped this week with values show- ing a decline of from 5 to 7 cents a| pound on Spring chickens and old hens Colored Spring_chickens 2 pounds and over are bringing 43 to 45 cents a pound; 115 to 42; smaller. 35 to 38, with Leghorns All poor, thin chickens as well as large, | which are in ample receipt, are slow g fairly rns will not bring over . while fow] weighing less than pounds is not wanted at any Old roosters are in ample supply and good for choice fat ducks at 2 but common, thin is hard to pla and most of the receipts consist of this sort as an aftermath of the lay ing season. The market for guinea {o Live Stock Market. Quotations today st Light | whart: | ezs have been running fairly liberal | the demand has kept up \\:hh supplies | and there is little surplus in the daily | arrivals despite the fact trading on the | exchange has been light the past week. | | Street ‘sales, on the other t:;ndmfi‘;iw' V194 f125 combis 40! mbdhiE: 8% | shown an improvement and the market | g o O Aith vales & shade higher at|10. Bulls, as to quality, 7 to 9. Cows, 281, cents & dozen for firsts in free | Cholce to fancy, 7 to 9; common to fair, cases, but current receipts as well as| (4: !;«3"8- vc:)xecr‘r_;o]é-: tgf rql;:l‘:;% s}st‘n & e NI ceEene ) 16 s 14 10 1415 large, rough, e 1 s contini 2 n, 0 '10; rough and Recelpts of white potatoes “Imarket | common, 7 to 8. Sheep. cholce, 6 to 7 i ‘graded | Old bucks, 4 to 5. Lambs, choice, 15 to street | later dealing: 27.—Due as a April well | wh light from all sections LG TR 464 | 16; fair to good, 12 to 14; common, thin, stock bringing 1.15 to 140 per 8 to 10. Spring lambs, 40 to 45 pounds, pounds, but McCormicks and Reds not | 6% 20, Hogs, straight, 10 to 11% so desirable at 1.00 to 1.15. New pota- e high and the demand umned( lwk;nDl.? Live pigs, 10 to 14. 5 to 7.00 a barrel and 3.50 to 4.75 a }mml go{. 2 mfik. ¥ " Closing Grain Ouotations. Demand for native and nearby gar- 5 d ;, | May den truck continues good and all stock| Whest—No. 3 red ",‘";"' ”g":ki PR Showing quality meets with ready sale spot, 1.21; April delivery, 1.21. Corn— | Bitember at top values at the followigl qua‘t’azinn. 2 export, April delivery, no quota- | OAT tions: Asparagus, 2.0024.50 a dozen, but | i st 108 )] eylls will mot bring over 1.2sal.s0; | tons: No. fm‘_’x"“";";;";a’r"’,‘nml oot cabbage, 75a1.25 hamper: Kkale, ZOIlQ\NO 2 white, A"lOm(‘(ll} spot, 60260 lettuce, 1.25a1.50 hamper; | 8O- 2 S S COME 0l PR earby, 1.10a 2.00a4.00 per 100 pounds; Spring 148 - . . 3 onions, 75a1.00 100; radishes, 1502250 =115 | 100; rhubarb, 2.00a4.00 100, and| T spinach, 3090 bushel. ’ Natives of Chile are buying American | Under generally light receipts espe- | phonographs. | at 1 prices mostly in | rise of 5 cents. to 2 pounds, 40 1 eptember December CORN- May . Sow size and quality. Shor hens, 31, pounds ell ‘at 31 to price Demand fairly to 27, at 20, July .. . September . Announce Their New And Improved Peerless Spring, With A Special Introductory of NEW, IMPROVED PEERLESS SPRING EXACTLY AS PICTURED FROM PHOTO Bear In Mind ~--that thePeerlessis made of 108 improved, deep cushion coils of highest grade tempered wire, with stabilizer coils at sides. Choice of finishes in- cludes the new beautiful orchid shade. Fits any size bed. Cut out the coupon and order this week, ures. Recoveries, though ensued in the Domestic crop reports Beef cattle, first quality, per D()und,l"ere generally auspicious, and export demand for wheat from North America was again minus volume on the part of May hoiders unwilling to face expected heavy deliveries of t next month continued to exer- cise a bearish influence. Wheat closed irregular, 5% net lower | | to '{ advance: corn, % to decline to ';a% gain, and provi- | sfons varying from 20 cents decline to a The Egyptian government is erecting many new buildings. Virginia Railway Co. reports for quar- ter ended March 31, 1929, net income (of $1,393.667 after taxes and charges. equivalent after allowing for dividend requirements on 6 per cent preferred stock, to $3.11 a share earned on 312.- 715 shares of common stock. This com- pares with $953,514, or $1.70 a share on common in first quarter of 1928. Statement for March and months compares as follows: 1928 1,331,028 619.460 Selling out three et 1929 S UD; OALS, | yrarch gross Net operating Income. Total income. Surplus_after charges Three months gross | Net_operating income. Total income. : us after charges. . Marries New Yorker. By a Staff Correspondent of The Star. UPPER MARLBORO. Md. April 27. —Miss Anna Marie Brooke, 30, daugh- ter of William G. Brooke, court auditor, and granddaughter of former Circuit Court Judge Brooke was mar- ried this morning at 8 o'clock in St. | Mary's parish. to John Lewis Kelly, 27, of Albany, New York. Mr. Kelly is connected with a New York brokerage | concern. The Coupon Below Will Save You For a quarter of a century the Peerless Spring has had the enthusiastic indorsement a host of Washington Housekeepers R pRIL THE 29TH $2.50 sicnep Foster Bros. Mfg. Co. PURCHASER ADDRESS 6 36 96 DurinG THE WEek O -—to Saturday, May 4th, inclusive, any of the following dealers from whom you buy a Peerless Spring, upon presentation of this Coupon, will allow on your purchase the sumof.......... OE) ERR S 28222t ks Regularly $21.75 With Coupon Allowance $1 9.25 30 Days Trial | Thig is the very best Spring at any price we have ever offered. We guarantee it for 25 years. Moreover, if you are not thoroughly pleased with your pur- chase after 30 days it can be returned. Order early and insure prompt delivery. Buy the Peerless Spring from Any of These Dealers ANSONIA FURNITURE CO. 501 H St. N.E. R. E. BURKS, INC. 1101 7th St. N.W. GIBSON FURNITURE CO. 410 8th S. E. GLOBE FURNITURE CO. 1023 7th St. N.W. GOLDENBERG'S, 7th & K N.W. PETER GROGAN & SONS CO. 819 7th St. N.W. THE HECHT CO. 7th & F St. N.W. C. B. LONG 1251 Wis. Ave. N.W. FRANK MICHELBACH Alexandria, Va. WM. E. MILLER FURNITURE CO. 7th & E St. SW. 3140 M St. N.W. NELSON FURNITURE CO. 503 H St. N. E. NEW BARGAIN HOUSE 2004 14th St. N. W. THE PALAIS ROYAL, INC. 11th & G Sts. N.W. PREMIER FURNITURE CO. 425 7th St. N.W, D. S. POOL, INC. 729 11th St. N.W. M. REA SHAFER, INC. 1325'7th St. N.W. SIMON SPECIALTY CO. Hyattsville, Md. ROGER B. SMITH 314 8th St. N.W STERLING FURNITURE CO. 417 H St. NE. HOME FURNITURE CO. 1145 7th St. N.W. HOPWOODS, 716 K St. N.W. HINKEN & SON, Alexandria, Va. HUTCHINSON BROS. 1814 14th St. N.W. L. T. JONES, 931 H St. NW. S. KANN SONS €O. Penna. Ave & 8th St. N.W. LANSBURGH & BRO. 424 7th St. N.W. mFOSTER BROS. MFG. CO.. INC THOMPSON BROS. 1220 Good Hope Rd, Ana., D. C. THOMPSON FURNITURE CO. 2006 Rhode Island Ave. (Woodridge, D. C.) S. WEISENBERG . 405 10th St. N.W. WALKER THOMAS FURNI- TURE Co. 1013 7th St. N.W. THE WRIGHT CO. 905 7th St. N.W.