Evening Star Newspaper, August 4, 1929, Page 73

WALLER CHOOSES ~ BANK COMMITTEES New Body Headed by Hoskin- son to Have Charge of New Credit Bureau. s BY EDWARD C. STONE. Wilmer J. Waller, president of the District of Columbia Bankers' Associa- tion, yesterday announced the complete personnel of all the standing committees for the present year. On these com- mittees are many of the ablest bankers in the city and the work of the asso- clation is sure to be carried forward with fine judgment, energy and fore- sight under the new administration. Appointment of the committees in Mid- summer gives the members an oppor- tunity to take up their work early in the Fall without delay. One important committee appears for the first time this year, the one in charge of the newly established credit bureau. Hilleary G. Hoskinson served as chairman of the committee which es- tablished the bureau, acted in the same capacity after the bureau got under way and has now been asked to remain as the head of the committee for the whole year. The other committees are much the same as those that have func- tioned for several years. The complete membership, including the chairmen already announced, follows: Bankers Serving on Committees. Protective Committee—Edward J. Mc- Quade, chairman, Liberty National Bank: John D. Leonard, vice-chairman. Washington Savings Ban Howard Moran, American Security & st Co.; F. G. Addison, jr. Security ings & Commercial: Claude H. Woodward, Mt. Vernon Savings; Robert V. Fleming, Riggs National: W. W. Spaid, W. B. Hibbs & Co.; C. H. Doing, Washington loan & Trust; T. J. Groom, Washing- ton Mechanies Savings Bank: J. Frank White, National Bank of Washington: F. M. Calnan, Liberty National: John Poole, Federal-American National: John B. Cochran, Franklin National: Col. Wade H. Cooper, Con- tinental Trust Co.: Dr. F. E. Farrington. Chevy Chase Savings; and James Trimble, National Bank of Washington. Committee on Credit Bureau—H. G. Moskinson, chairman. Riggs National H. T. Bisselle, vice-chairman. J. McQuade, Liberty G. ison, Jr.. Security Savings & Commercial: C. F. Jacob- sen, :'lflonll Metropolitan:F. P. Har- man. ir., Merchants Bank & Trust Co.. J. Dann Faber, American Security & Trust Co.; Arthur J. Linn. Federal- American Nnuon‘al; and S. M. Thrift, Pranklin National. Law and legislation—F. G. Addison, 4r.. chairman, Security Savings & Com- ‘mercial: Robert V. Fleming, vice chair- Tan, Riggs National: H. H. McKee, National Capital; W. W. Spaid, W. B. Hibbs & Co.; Corcoran Thom, Amer- jean Security & Trust Co. and Joshua Fvans, jr., District National. Guardians of Taxation. Taxation—H. H. McKee, chairman, National Capital Bank; Howard Moran. Viee chairman, American Security & Trust Co.: F. G. Addison, jr Security Savings & Commercial: . W. B. Hibbs & Co.; R. Riges Nlflm’ul\l B”I‘{k-!l'nsl Johi Federal-American National. Insurance—Frederick P. H. Siddons, chairman, American Security & ‘Trust Co.; Barnum L. Colton, vice chairman, District National; ‘Anacostia Bank; A. H. Lawson, Wash- ington Loan & Trust Co.; John H. Moore, Continental Trust Co.. Bruce Baird, National Savings & Trust Co.: T. €. Willis, Munsey Trust Co.; Frank G. Burrough, Riggs National; C. F. Jacobsen, National Metropolitan: Irving Zirpel, Unfon Trust Co.. and Erskine Gordon, Federal-American National. Publicity—L. E. Schreiner. chairman, Merchants' Bank & Trust Co.: Aubrey vice chairman, Federal-« onal; E. J. McQuade, Lib- erty Nationa F. P. H. 8iddons, American Security Trust Co.: Thomas W. Brahany, Crane, Parris & Co.: R. L. Flather, American Security t: T. Hunton Leith, Security mercial: H. L. Selby. ‘& Mechanics' branch of Riggs , and Bruce Baird, National Savings & Trust Co. Treasury relations—L. P. McLachlén, chairman, McLachlen Banking Corpor- ation; I J. Roberts, vice chairman, Riggs National; V. B. Deyber. Second National; A. M. Nevius, Riggs National; James H. Baden, Commercial National, E. Percival Wilson, National Savings & Trust Co.; W. R. De Lashmutt, United States Savings, and Karl W. Corby, ‘W. B. Hibbs & Co. ‘Will Watch Business Conditions. Commercial trade activities—George ©. Vass, chairman, Riggs National Bank: J. Prank White, vice chairman, National Bank of Washington; Laurence A. Slaughter, Commercial National; Frank Stetson, National Savings & Trust Co.; Fred McKee, Security Savings & Com- mercial; R. S. Stunz, Park Savings; Charles’ B. Lyddane, Federal-American National; W. Reginald Lewis. Northeast Savings; Miss Mary J. Winifree, Con- tinental Trust Co.; Archibald McLach- len, McLachlen Banking Corp.; J. R. ‘Waler, International Bank: C. H. Doltfg, Washington Loan & Trust Co.: Joshua Evans, jr., District National Bank:* J. T. Exniclos, Departmental Bank; Theodore Michael, North Capital Savings Bank; Frank J. Stryker, Co- Jumbia National Bank; H. W. Offutt, Potomac Savings Bank; C. A. McCarthy, East Washington Savings Bank: Geoml L. Starkey, National Bank of Washing- ton: B. A. Bowles, Bank, and James A. Soper, Lincoln National Bank. Audit committee—Edson B. Olds, chairman, Union Trust Co.. J. Dann Faber, vice chairman, American Security & Trust Co.; Arthur J. Linn, Federal- American National; Raymond G. Marx, & Trust Co.: Frank Owings, Bank of Commerce & 3 J. D, Howard, Seventh Street ings, and C. W. Warden, Continental Trust | Co. Standardized banking forms—F. H. Cox, chairman, Commercial National Bank; F. P. Harman, ir., vicé chairman, Merchants, Bank & Trust Co.; Arthur J. Linn, Pederal-American tional; J. Dann Faber, American Security & Trust Co.: E. J. McQuade, Liberty Na- : Joshua Evans, jr., District Na- 1; J. E. Troth, Chevy Chase Sav- ings; J. jordon, Bank of Commerce & Bavings; C. D, Ratcliffe, Trust Co.; F. Cunberti, International Exchange Bank, and C. D. Boyer, Federal-American National. New Lincoln Bank Director. Fred A. Smith, secretary and treas- urer of the Floyd' E. Davis Co., & real estate firm, has been elected & director in the Lincoln National Bank, according to announcement made yes- terda Mr. Smith will be one of the ygungest. bank directors in Washington as he is onlg. 32 ,ynr‘u’ olttA nll-leuvu"g;um in Al a, A 5 T od 'p"h,lhe real estate in 1 g He: is:a member of the board of di- rectdts and has been secretary of the Columbia. Permanent Building Associa- tion since January, 1927. Mr. Smith is a member of the Washington Trade and has been active on membership and public order commit- tees for several years. He is also a member of the Washington Real Estate Board, having served on im- Dividends Expand in Half Year. Dividends and interest paid into the of ipal” Ameri. e b Qo proximately £3,265,845,000, it s -godlh renorted to the Potomac Savings | Maurice Otterback, | FINANCIAL o] FRED A. SMITH, Real estate and building association of- ficial, who has been elected to the Franklin National Bank board. He takes the place of the late Peter Lat- terner and is only 32 years old. RAYON INDUSTRY'S RECOVERY IS SLOW Current Low Prices Tend to Curb Imports and Spur Consumption Here. NEW YORK. August 3 (N.ANA.).— ‘The smoke j= gradually clearing y after a second cut in rayon prices with- in a few months, but recoverey from the shock has been slow. Readjustment of the various branches of the in- dustry to the reduced price basis has been somewhat painful. To realize the gravity of the situ- ation it becomes necessary to recall that in the past one of the selling argu- ments for this fiber was the relative stability of prices. Commitments could be made then with reasonable assur- ance of steady prices. Difficulties Started in 1926. Difficulties began to appear in 1926. As a result of the producers’ inability to market their greatly increased out- put they were forced to make two price reductions. By 1927 sales had improved sufficiently to permit a moderate ad- vance in price. In 1929 over capacity again became so serious as to necessi- tate downward revisions, first of 13 per cent in February and then of 12 per cent in June. Naturally, confidence was under- mined: buyers hesitated. In an endeavor to reassure them the largest producers | have issued statements that no further cuts are contemplated at this time. As a result some of the uncertainty has subsided. Users of rayon, such as knit- ters of underwear, have adjusted quo- tations on their products and business is returning to more normal tempo. Forelgn Situation Key. If the foreign situation should now improve the outlook for the industry would strengthen materially. European countries have fairly large exportable surpluses, as reflected in the fact that imports into the United States for the first half of 1929 exceeded the same mflt‘)d of 1928 by more than 50 per cent. Current low prices tend to aid the industry in two ways: By discouraging imports and by stimulating consump- | tion. (Copyright, 1920.) EAST SHORE RATES CUT Light and Power Reductions Total $137,500 Annually. Special Dispatch to The Star. BALTIMORE, August 3.—Rate re- ductions totaling $137,500 annually for supplying electric light and power on the Eastern Shore were ordered yes- L;;‘dly by the Public Service Commis- slon. ‘The order was served on the Eastern Shore Public Service Co. of Maryland, & subsidiary of the Eastern S8hore Pub- lic Service Co..of Delaware; the Dela- ‘ware Power Co.. Vienna, Md., and the Consumers’ Public Service Co. of Maryland, & subsidiary which supplies electricity in Crissfield. ‘They are required to file new sched- ules to effect the total reduction or- dered not later than September 15. The new rates will be effective on {all meter readings after September 19, ‘The proceedings were begun Sep- tember 21, 1927, when the commission ordered an investigation of rates, rev- enues and capitalization. ——————— SALES RUN HIGHER. NEW YORK, August 3 (#.—July sales of the National Cash Register Co. for the seventeenth consecutive month exceeded the sales of the corre- sponding month of the previous year. RUBBER IS STEADY. NEW YORK, Auj 3 (Special) — Crude rubber, smoked ribbed = sheets, was unchanged at today’s noon quota- tiond of 21%ec. This compares with 21%c a month ago and 19%c a year ago. —_—————— BUILDING HEAVIER. NEW YORK, August 3 (#).—Bulildf and engineering work started in ég: etr triet of New York dur- and | $4 opolitan disi July totaled $176,186,400, compared with $83,960,400 in June, and $109,977,~ 900 in July, 1928. Commerce Department. Of this sum $1,264,500,000 represents dividends, 3 $2,001,045,000 is These figures -are liminary and will almost certainly E increased many millions of dollars when a final tally of payments is made, in the opin- fon of the Chatham Phenix National Bank & Trust Co. They are valuable, however, for the comparisons they af- ford with similar data for previous years. “In the corresponding period of :;23," the bank continu total of was reported paid. As against this fig- ‘ure the current year's its -l?n'w or 13.5 per 1027 totat | O cent. Ooms;nd with the of $2,769,230,000 the gdin for 1929 is or 17.9 per cent. Board of | cashi the | Bank, ak f | Special Dispatch to The Btar. b7 | WAGE SCALE INCLUDES 405,000 in interest and dividends | T WHEAT HAS PLUNGE IN CHICAGO TRADE Prospect Big Receipts Have Bearish Effect on Grain Market. BY JOHN P. BOUGHAN, Assoctated Press Market Editor. CHICAGO, August 3.—Faced by pros- pective big receipts Monday and stag- I gering under an almost unmanageable burden of supplies, the wheat market today plunged heavily downgrade, mean- while primary receipts of domestic wheat had reached the huge total of 37,012,000 ‘bushels for the week, com- pared with 24,497,000 bushels a years ago. Exporters were credited with hav- ing bought 1,000,000 bushels of United States wheat today, but this amount failed outright to uphold, prices as against the rush of rural 'holders to market their wheat without delay and take no chances on possible railroad blockades. Closing Prices Heavy. Closing quotations on wheat were heavy at 1% to 2% under yesterday's finish. Corn closed 17 to 2, off; oats 738l to 1% down, and pro changed to a setback of 2, Right from the outset, much lower prices for wheat resulted from urgent selling that was assoclated with bur- densome arrivals here, 545 cars today, nearly double the receipts at this time last year.' Besides, it was announced that receipts of wheat for the week totaled 7,105,000 bushels, against 2,825- 000 bushels a year ago. There were also advices that on account of the extraor- dinary big movement of Winter wheat from rural sources, Kansas City was breaking precedents by sending 1,000,000 bushels to Duluth at 13 cents under the current price of Chicago December delivery, + Liquidating . Sales. On the consequent swift downward swing of the wheat market here, a gen- eral wave of liquidating sales took place, and numerous insecurely margined hold- ings of~future deliveries were thrown into the pit as a result of standing orders to stop losses are various fixed 1 lons, un- limits. Reports of frosts at some points in Canada brought about something of a spurt of buying at times, but price ral- les failed to last well. At one stage, values today dropped to 10 cents a bushel under last Monday's top level. The close today was ragged, about 1 cent from the day's bottom figures. Good_additional rains in corn ter- ritory, Jowa, Illinois and Indiana, con- tributed to wheat weakness by pulling corn prices down. The corn market was apparently unaffected by reports of four successive days of temperatures above 100 in Kansas. Oats gave way to corn. Provisions were easier, owing to down- turhs in the value of hogs. PROCTER & GAMBLE STOCKS TO MORGAN Big Banknig Firm Buys 250,000 Shares in Soap Concern. Listing Planned. By the Associated Press. CINCINNATT, August 3.—The Procter & Gamble Co. through its president, William Coopsr Procter, today an- nounced sale of 250.000 of its shares to J. P. Morgan & Co., New York bankers. Stockholders of the soap company at a special meeting here today also for- mally announced approval of a plan to change the present comnfon stock with a $20 par value to no par value o;:d a basis of five shares of new for one | old. ‘The stockholders approved the resolu- tion releasing all pre-emptive rights on the shares sold to the Morgan concern | which were disposed at a basis of $66.67 for 150,000 shares and $80 for the re- maining 100,000 shares. The Morgan sale was completed, it was sald, at a l|hr:P when the old stock sold at $378 a share, Mr. Procter said application had been made to place the new issue on the New York Stock Exchange and ;mlnbly would be effective August 12. This step was taken, officials said, to broaden the scope of ownership. 372 BANKS CLOSE DOORS IN FIRST HALF YEAR NEW YORK, August 3.—According to & survey published in the American Banker, 372 banks have been reported closed during the first six months of 1929. This figure would indicate an acceleration in the pace of bank sus- pensions when compared with the total of 491 bank closings for 1928 and 662 for 1927 reported by the Federal Re- serve Board. ‘The American Banker's summary also indicates that 334 banks have been merged during the first six months of the year, and that while mergers and suspensions have eliminated 704 insti- tutions, only 120 new ones have been ‘chartered. Nebraska contributed most heavily to the list, with 74 closings reported, but this is the effect of the abolishment of the State Guaranty Fund Commis- sion, which was carrying many of these institutions to liquidate for the benefit TS, Prior to July 1, Florida was second on the list, with 31 failures. Since July 4 Florida has reported an addi- tional 32 closings, it is noted. New York with 25 mergers and Texas with 24 led the lists in consolidations, and these same two States also led in total number of new banks, New York with 16 and Texas with 18. ‘That the net reduction in the num- banks of the country will con- most_of the failures is improving and the list of bank suspensions may be expected to decline, the increase in the number of mergers is exficwd to continue the reduction in the total number of banks in existence. JNEW LIFE INSURANCE Special Dispatch to The Star. ST. LOUIS, August 3.—Interesting proof that “life insurance is perhaps the best sold idea in the country” comes in the announcement that the new. upon by the St. r\cnru included a definite sum to be set aside for the purchase of life insurance and STUDY OF PROBLEMS OF NATION ' IN 2000 A. D. LED BY DELANO Washington " Man Heads Group Planning Far Ahead for. This Country: Disposition of Lands' and Resources Chief Conoern of the Future, BY JOHN F. SINCLAIR.. NEW YORK, August 3 (NANA)— A number of business men, headed by F, A. Delano of Was| n, former president of the Wabash and member of the first Federal Reserve Board, have been giving considerable study to the problems facing America in the year 2000.A. D. 4 This group, bellving that there is no more important problem confronting the future of America than the proper disposition of its lands, has seriously attempted to bring cerfain facts to the attention of the American people that have up to this time been overlooked. It is expected by the year 2000 that the population of the United States will be in excess of 200 million. ‘Then, the two questions to which this business committee ‘have addressed themselves are: 'First, will. our land area in the United States meet the de- mands of our future population? Secomd. how are Americans to - de- termine the best use of their landed | ti resources? Studying the Birth Rate. After takjng up the rwhyllul resources of the United States, the problem of the birth rate is given attention and an estimate is made that the population will not reach a stationary quota some time in the next century. e figure is estimated at about 225 million people. The” problem of o lation in connection with that of food supply is given some attention. It is true that England was more overpopulated' in feudal times in the sense of comfort than she is today, with five times the number of people. Industrial technique and commerce have made this situation possible. It may be sald that any country will tend to become overpopulated if improvements in technique of control over nature do not keep pace with in- crease of population. The question concerning the effect which prosperity will have on the popu- lation is also considered. It may react as the industrial revolution did in England. Germany and Japan—to in- crease the population. Or it may check the rate of growth and give America & st;otmmry population, as suggested ve. But it was upon the subject of the varied uses of land utiliaztion that the study gave considerable attention. Citles Growing Faster. Cities are growing relatively than the country. New land m made available to take care of this growth many years in advance. cities are studying it very carefully. Los Angeles County has an official regional planning commission to deal with matters covering & metropolitan grea of 1,200 square miles. Massachu- faster ust be tts has conferred definite powers on | 5| 40 cities and towns around Boston, covering an area of about 400 square miles, in an endeavor to tackle the same problem. New York, through a committee on regional planning, has in mind an area of 5528 square miles for its met- ropolitan area, covering more than 400 communities. This region is larger than the area occupied within the city limits of all citles in the United States | over 30,000. Definite, concrete, rational organiza- tion of these vast areas, not only in the cities mentioned, but everywhere throughout the United Stats, should be undertakn and space allottd for streets, parks, stores, factories and transportation arteries. The matter of water supply is one of the major problems. Los Angeles is now negotiating for water from the Colorado River, to be brought across & high mountain range. New York gets her water from away up in the Cat- skills. Chicago is fighting the War De- partment constantly on the amount of water which she is allowed to take from Lake Michigan. Yet all of these problems confronting the cities must and will be solved, because the cities ere bound to move ahead. Country Surveys Seen. But the country, too, must be sur veyed and analyzed, in order that & well balanced program be laid out. At present the United States has 21 na- tional parks, totaling 12.113 miles, in- cluding 645 square smiles in Alaska and 248 square miles in Hawall. ‘The National Park Service is maki a special effort to preserve in natural state as much of the park area as is possible, without being spoiled by hotels and automobiles. In Northern Minnesota & move is on foot now to have set aside a large nat- ural park on the border between Can- ada and the United States by joint agreement of the Canadian and Ameri- can governmental authorities. It is being backed up by very powerful sup- rt. po The density of the metropolitan dis- trict suggested for New York is about 85 persons per acre. Think of & defl- nite plan which includes every item of business, recreation and transport, deal- ing with a population running well over 10,000,000. Yet, the day of hit-and-miss build- ing of cities is gone. In its place has come in_every progressive city a defl- nite, well thought out plan of city de- velopment. movement will con- tinue. Crowding in New York. Look at Manhattan, Only 12 per cent of the area is in public open space, with only one acre to every 1.234 persons. Below Pifty-ninth street there is an average day population of 352,000 persons per square mile. The situation in Chicago is even worse. In the loop district of that city there is & daytime density five times that of lower Manhattan. And yet Chicago is planning on al- (to 1 ’edlnn e in be to 1 lowing buil to tower 440 feet the before they are required to FREDERIC A. DELANO. set back. The canyons of lower Broad- Pated 1o ‘GowntownGhitugo o the wntown of the future if such a condition is allowed to_remain. ‘Turning to the country, probably the greatest crime which has been com- mitted in the United States has been allowing the vast forest area to be s0 rapidly and ruthlessly depleted without taking proper measure to elther stop it or inaugurate a reforesta- lon program to balance it. the present time the United States is using nearly 25,000,000,000 feet of timber every year, while the annual growth in the country is only about one-fourth of that amount. So we are depleting our annual reserve tl | now to the extent of three-fourths of our annual crop. ‘The whole solution to the forest ’uunon lies not in preserving virgin forests necessarily, but rather this should be the question: What sane program can be worked out which will mean the greatest good to the greatest number? P. A, Delano and his American com- mittee of business men, studying the land uses of the future, are doing a useful and very much worth-while job for the American people. (Copyright. 1920.) BALTIMORE, August 3 (Special).— Closing grain quotations: Wheat—No. 2 red Winter, spot, 1.39%; No. red Winter, garlicky spot, 1.34%; August delivery, 1.34%; September dex?v‘e‘al'y, 1.36; No. 3 red Winter, garlicky spot, 1.3015. Corn—No. 2, export, August de- livery, no quotations; No. 2 yellow, yel- low domestic spot, 1.20; cob corn, 6.00 per barrel, Oats—No. 2 white domes:. tic, 60a61; No. 3 white domestic, 58a59. hard to move, and the market continues to show a decline, especially on small Leghorns, for which it is more a ques- tion of a buyer than price. Colored pringers, 2!, lbs. and over are selling at 30 and 31 cents a 1b, a decline of 3 cents a lb. from last ‘week, and smaller fowl, 25 to 27, while Leghorns sell mostly 22 to 25, and all poor, thin stock is neglected at 18 to 20. Old hens also in more liberal receipt, and the market shows a decline of 2 cents a Ib. at 30 for fowl weighing 4 lbs. and over, while smaller stock sells strictly on its merits at 23 to 28. A fair demand prevails for large, fat old hens. but Leghorns are not desirable and will not bring over 28 to 25. Old roosters generally slow sale at 18 to 20. Choice fat young ducks, 4 lbs. and over, find ready sale at 22 to 24, but poor, undersized stock is hard to move at 20. Guinea fowl in good condition and weighing 1% 1Ibs. and over meet with ready sale at 90 to 1.10 each, but smaller as well as old stags move slowly at 50 to 75. Pigeons in ample supply for the de- mand, which is limited at 25, a fair price for both young and old. Egg Receipts Light. Receipts of native and nearby eggs of desirable quality running light and no trouble to place stocks that show the grade, but offerings of doubtful quality are slow sale even at lower prices. Busi- ness on the exchange ‘tontinues dull, as most buyers prefer to ship around on the street and see the goads before buying. The market closed today at 33 and 34 cents a dozen for candled stock and 31 and 32 for current receipts. New potatoes in lighter receipt the past week, and under a good demand, centered on well graded stock, the ma: ket shows an advance at 5.50 to 6.00 a . for No. 1 stock, and 2.00 to 2.50 for No. 2s, with a wide range in qual- ity on ungraded potatoes, which sell mostly 3.00 to 5.00. Old potatoes slow sale, and prices in buyers’ favor at 75 to 1.25 per 100 lbs. Market for most lines of native and nearby garden truck steady to firm, at the following quotations: Stringless beans, 1.50 to 1.70 bu.; ts, 2.00 to R 1.00 to 1.25 hamper: ts, 3.00 and 4.00 100; corn, 15 to 20 dozen; cucumbers, 56 to 60 hamper; eggplants, 1.50 to 2.00 crate; lima beans, 1.25 to 1.50 hamper; onions, 1.00 to 1.25 bu.; pepgers. 30 to 50 hamper; squash, 15 to 35 hamper, and tomatoes, 1.00 to 2.00 hamper. Peaches in Ample Supply. Nearby hes in ample supply, and it takes m stock to bring outside quotations of 25 to 50 a hamper. Can- taloupes also in liberal receipt, -with nearby stock selling 40 to 55 a hamper and Eastern Shore 40 to 1.00. The live cattle market has an easier tone under more liberal receipts, which are mostly of fair.quality and demand centered on_first quality stock. Quo- tations at Light Street Wharf: Beef cattle, first quality, 1b, 1115 to 12; common to medium, 8 to 10; bulls, as to gugmy, 8 to 10; cows, choice to fancy, to 9%; common to fair, 5l2 to 7; oxen, as to quality, 8 to 10; calves, veal, choice, 15 to 183 ; large, fat, 13 to 1 large, h, 10 to 11; thin, 8 to 1 rwh and common, 7 to 8. Sheep, choice, 2 to 8; old bucks, 3 to 4 lambs, fancy, 12% to 13: choice, 11 2. Hogs, ight, 11‘/%'0 12; sows, nm’u; live pigs, 10 to 15; shoats, 10 Week’s Financial High Lights Special Disnatch to The Star. NEW YORK, August 3, 1029, Stocks (average of 50 issucs).......... Bonds (average of 40 issues)....... Foreign bonds (average of 10 issues). Amoun Commercial Iailures (R. G. Dun & Co. reports Number ‘Week of JW" 1929, +1,078,605 U saom Last Week. ‘This Week. h, Lew. 28435 279.06 o 76500 vess 8’ $371,164,175 1,897 1,947 $41,220,000 $20,827,073 Previous week. Year ago. 1,804,632 ,033,843 'nu::m : 55,233 168,320 ©160,209 1167 431,374,761 TAX BUREAU RULES ININSURANGE ISSUE | Question of Exempt Annuities and Taxable Dividends De- cided by Experts. ’ ‘The United States Bureau of In- ternal Revenue has just announced an important ruling in "connection with the taxability of annual payments re- celved by holders of so-called combined insurance and annuity policies or con- tracts varfously described as “life annuity with death benefit” and “par- ticipating life income policy with flunclple sum payable at death,” ete., ed by leading domestic and foreign insurance companies. ‘This ruling: holds that in order to arrive at taxable income, the peculiar g:ucien or contracts in question shall treated, in part, as annuity con- tracts within the meaning of the reve- nue act of 1926 and the revenue act of 1928 eonly if the issuing insurance company properly allocates that por- tion of the total premium or considera- tion paid to the mu&y feature which can fairly be so identified. ‘The precise issue to be settled was whether the annual yments re- ceived by the holders of such contracts, or policies, constitute exempt annuities so that the holders are not uired to pay income tax on the amounts re- celved by them from the insurance companies. In the National Income Tax Magazine for July Joseph Conrad Fehr, former attorney in the Internal Revenue Bureau, and now engaged in private law practice here, discusses the ptr:‘l‘nemu involved. He says in sub- stance: Type of Policies Cited. It is apparent from an examination of these policies that the understand- ing arrived at between the insurance company and ‘ts policy holders is that upon the payment of a single premium of, say $10,500, the policy holder is to receive a fixed guaranteed annual return, designated as an annuity, plus such additional amounts as the com- pany declares from time to time in the nature of dividends. The face value or principal sum of $10,000.is the so- called benefit payable to a designated beneficiary and also the cash surrender value to the holder. The $500 covers the insurance company’s . commission and incidental expenses. Such instruments of various fact values may be purchased from almost every insurance company by paying a single premium which is 5 per cent greater than the principal sum named in the contract. Whoever owns such a policy is entitled to receive annual pay- ments in an amount not less than 3 per cent of the principal ‘sum or cash surrender value named in the policy. And some companies guarantee annual payments as high as 3'2 per cent. Under these contracts the annual pay- ments are increased from time to time by such additional amounts as may be allocated or alotted thereto from sur- plus or earnings, thus augmenting the income payments for the year in some cases to as high as 515 principal sum. The principal sum or cash surrender value, known as the death benefit, is not, except as to the loading charge, decreased or exhausted by the yearly or periodical g:ymems to the holder, and the death benefit pay- able to a designated beneficiary is at all times the same as the cash surrender value during the holder’s lifetime, Chiet Points in Policles. Policies or contracts of this charac- ter, althcugh issued in various amounts and various face values, are essentially Inllonfi the lines of the following out- ne. Annuity Payments—This company hereby binds itself to pay to “A” (here- in called the annuitant) the sum of $350 on the 1st day of December, 1928, if the said annuitant be then alive and a like yearly payment on the 1st day of December in each year thereaffer, during the subséquent lifetime of the same annuitant. Death Benefit—The company fur- ther agrees that on receipt at its office in the city of of due proof of the dea the said annuitant, it will pay to “B” (herein called the bene- ficiary) or in the event of her death, to the executors, administrators or as- signs of the annuitant the sum of ten thousand ($10,000) _doHars _ (herein called the death benefit) ther with a proportionate part of annuity ayment for the fractional period be- iween the date on which the last an- nuity ;mymem becomes due and the date of the death of the annuitant shall not be less than the premium herein- after set forth after deducting there- from the total annuity payments re- ed by the annuitant. P.mc‘up“llnmi in pm&u.—m -nnui:y payments, including the proportionate payment on the death of tge annuitant, shall be increased by such dividends as may be allotted by the company out of its surplus interest earnings. This policy is issued in consideration of the payment of the sum of ten thou- sand five hundred ($10,500) dollars (herein caled the premium), the receipt of which is hereby acknowledged. Cash value.—This policy may be sur- rendered to the company at any time, provided there is no legal restriction to the contrary, for a sum equal to the amount of the death benefit as set forth on the first page hereof. The company shall have the right to defer the pay- ment of any surrender value of this policy for a period not exceeding days from the date of the application therefor. Are Payments Taxable Dividends? ‘The precise problem which the In- ternal Revenue Bureau concerned itself with was whether the annual payments received by the holders of such con- tracts constitute exempt annuities within the meaning of applicable provisions of the revenue acts of 1926 end 1928 or whether such payments were really interest accretions or in the nature of dividends and therefore tax- able income. s aet i ot e Buteus of Taternal ie Bureau Revenue decided the issue with the utmost fairness to both the Government and the insurance companies by hold~ ing that— . . W the insurance compa- nies are able to make a fair allocation of the total premium or consideration id for a particular contract between Fl:e annuity and the life insurance fea- ture thereof, and the porifon of the premium or consideration allocated to the annuity feature is exhausted as the annual unnul%p;ymamn are made, the contract should be treated, in part, as an annulty contract within the meaning of section 213 (b) of the rev- enue act of 1926 and section 22 (b) 2 of the revenue act of 1928, purchased with that portion of the total premium or consideration paid which is fairly ted to the annuity feature; and CHARLES E. HOWE, Treasurer of the American Security & Ci ho is the month of August at his old home in 3 Pa. The veteran financier was recently re-elected chairman of the safe-deposit section of the District Bankers’. Associa- WIDE GAINS MADE Issues Move Irregularly High- er in Face of Active Profit-Taking. By the Associated Press. NEW YORK, August 3.—Curb Ex- change stocks moved irregularly higher in the fece of active prifit-taking in today’s short session under the leader- ship of the investment trusts and the utilities. ~Several ' issués made wide gains, with an extreme of 49!2 points Detted by Aluminum Co. ‘There was little in the day’s'news to influence the market, and traders seem- | ed to ignore the increase in member ; loans reported by the New York Stock | Exchange. Some quarters are looking for easier money next week. Electric Bond & Share resumed its leadership of the utilities, as the Insull group of stocks encountered heavy real- izing. Bond & Share, Electric Investors and Northern States Power “A" rose r cent of the | 0| and more than 1 to 3',, the last touching a new high. Central States Electric gre!en'ed shot up 28 points to a new igh at 179. Insull Utility Investment shot up to 160, a new top, and then re- acted to 142 d closed at 143 for a net loss of 315. Middle West Utilitles lost 7. Activity in the utilities was partly accounted for in the report of electrical output in the United States in June, which showed 7,768,790,000 kilowatt hours used. In the investment trust group new highs were reached by Capital Admin. istrtation “A,” Guardian Investors, Southern Corporation and Utility Equi- ties. With the exception of the first named, which finished with a 1l5- point loss, all closed with gains ranging from 2 to more than 3 points. National Investors yielded 8 points, while Shen- andoah and Intersiate Equities made small gains. Dayton Airplane nsnln broke through to & new high, and Standard Steel Pro- peller rose more than 2 points to & new to] Rewmont Mining lost 3 points of its sharp gain made earlier in the week | on reports of increased European de- mand for copper. NEW RECORD LIKELY National City Bank Questions Any | Severe Setback From Keen Competition. Production of automobiles and trucks is running somewhat under the rate of the Spring montns, but the decline is “""i seasonal, says the National City 's Monthly Review, being inci~ dent to g!replnnom for bringing out new models and increasing output in the Fall. For the first half of the current year Kodumnn of passenger cars and trucks the United States amounted to 3,223, 090, which was 46 per cent higher than in the corresponding period of 1928 and well above all previous years. The cumulative monthly production would | indicate a new high record in 1929 of perhaps 5,500,000 vehicles, even allowing for a possible moderate recession dur- ing the remaining months. Because the automotive industry now constitutes such an important part of general business, it is being followed with particular. interest at the present time. Unquestionably the expansion of Ford production has increased com- tition in the lower priced field, but t is hard to recall a time when competi- in the industry has not been keen, it is worthy of note that in_ the current year new high records have been made by the Chevrolet of General Motors, and some other light cars as well. Amunsmthe higher priced cars the competit of the Ford has also been felt indirectly by affecting the Vvalue of trade-ins which are an important factor in the sale of new cars. For- eign demand for American automobiles continues its. steady increase, part of which, however, is being met by the numerous assembly plants and factories that have recently been established abroad, whoss output will to some ex- tent replace shipments that were formerly made from this country and a) in our export trade statistics. irave concern about one %um or qemuud“rgl!nn:&m ‘t:dmn 1¢ e e for years back, but the past record of leading companies and their present strong financial position mpgeort confidence that the industry will be quite able to look after itself in meef competition, regulating production and solving new problems as they arise. . HUGE GROUP INSURANCE GAINS DURING 18 YEARS ‘The rapid expansion of the idea of m life insurance, the first policy of seen was written only 18 years ago, is in the fact that y::dly“:m ,000,000 workers in 17,000 establish- by approximately .| actions ruled small. ON CURB EXCHANGE 2 IN AUTO INDUSTRY/|: CONVERTIBLE GROUP LEADS BOND LIST Market Moves Shade Higher, With “Telephone Twins™ in Leadership. By the Associated Press. NEW YORK, A 3.—~The bond market moved & e higher in today’s quiet short session. - Convertibles, taken in large blocks, developed pronounced strength and the telephone twins, Ameri- tfin h:nd International 4 1-25, got to new ighs. Some fair trading lgpeued among the standard rails, which were irregular. Steel company issues advance in the in- dustrial group and the trend of the utilities was upward, although trans- United States Gov- ernment securities held firm on excep- tionally small turnovers. - Convertibles Most Active. ‘The share privilege bonds absorbed approximately 50 per cent of the day's business, the two -telephone debentures alone accounting for $1,750,000 of the $5,300,000 total. The American Co.'s convertible touched the new peak of 2083 2nd closed at 20715 for a net gain of 1 point. International Tele] 4155 got to 177 and closed 3 points be- lo{w1 Ihat figure, making a net advance of 1%. A new favorite was the general public service Corporation 51;s, admitted to trading last Wednesday, which rose 3 ints to 118. The issue was offered publicly about three weeks ago at 102. Its low since listing is 108. = Other Strong Convertibles. Otheg strong convertibles were Alle- hany Corporation 5s, 1949, up 13 Atchison 414s, up 1, and American In- ternational Corporation 5128, up frac- tionally. Reading Coal & Iron 6s, which have been steadily declining from their recent peak, made a further re- cession of a point. Changes in the investment rail list included fractional losses by Ball & Ohio first 5s, Central Pacific 5s, St. Louis & San Francisco 4s and Missouri Pacific General 4s. ‘The most important gains were shown in Baltimore & Ohio 4s, Toledo and Cincinnati division; Rock Island refunding 4s and Erie 4s. OPTIONAL ISSUES GAINS. Domestic List Average Down To New Low During the Week. Special Dispatch to The Star. NEW YORK, August 3.—Midsummer finds the bond market in much the same condition that it has been for the past two months. Interest is all in the con- vertible issues, which this week have been somewhat more irregular with respect‘to the old favorites, but with new stock option bonds filling in the gap and showing substantial gains. The domestic bond average. which, does not include the convertibles, has dropped to a gew low,.or about 312 points under that of last January. This was to be expected in view of the stringnt money conditions that have developed out of the August 1 require- ments plus the heavy absorption of funds both for the market for securitiesi and to accommodate commercial re< quirements. With the average rate for' call loans in July slightly above 9 per cent, the highest for the year except in march, and with time loans up to 83 per cent. investment issues that are sell- ing under a 5 per cent basis face.a severe handicap. Hold Up So Well. The astonishing thing is that they hold up so well. There has not been & t deal of liquidationl in them re- at the same time the demand has been slight. About all they can be expected to do is to hold steady. New supplies are small, with the volume of July financing in the form of straight mortgages much below that of other Summer months. Most of this week's new offerings have been in the form of stock issues.. Of these the securities of public utilities and of investment trusts have ranked The only railroad financing for time has been with equipment trust certificates. The railroads bought very little equipment during 1927 and in "1928 when they could have sold their equipment notes on a 413 to 4% per cent basis. Today they are com- pelled to negottiate with their bankers at a figure permitting the latter to sell to_the public the early series on from a 53 per cent to a 6 per cent basis and for the long maturities fully 1 per cent above that of two years ago. Municipalities are being restricted in their improvement progress by the obtaining long-term money at a rate satisfactory to them and within their legal right. They are re- sorting to temporary loans which fre- quently cost them 6 per cent. The day seems rather distant when they will be able to refund these loans on a per- manent basis, and at rates acceptable to them. Convertible Stock A‘“mflm Stocks, either common or preferred, with convertible privileges, absorb the interest of the investing public. This is not to be wondered at when the remarkable record achieved by so many of the public utility junior issues the past year, is considered. The whole program of corporate financing has been thrown out of gear by the prefere ence of the public for equities rather than for creditor positions. It will take a long time to restore it. ‘The expectations of a month ago that ‘bonds might move up late in the Sum- mer, with the return of good markets for investment securities in the Au- tumn, have been completely dashed by the return of the high money rates first, tutional buying in 3 purchases for .individual accounts and estates that are usually postponed at this season of the year. The general outlook, however, for fixed interest buntnhg gcun:les :a'er tll'w next few monf not _particularly promising and is occasioning further readjust- ments on the part of selling organiza- tions to the new requirements of their trade. ) —_— GAINS ARE STEADY - IN ICE INDUSTRY, Special Dispatch to The Sta; NEW YORK, August 3.—Producers of manufactured ice are experiencing & very favorable year, with sales greatly exceeding previous records, and pros- pects favor continued expansion of prof- its. Mechanical refrigeration concerns also are in the most fortunate position witnessed for several years, current and prospective business indicating substan- tial improvement over last year's earn- ‘Weekly Record Trade on Chicago ’Change. CHICAGO, Aug. 3 (#)—Sale on the Stock Exchange ran up to a during the week, 2,907, hares compared the =1 g’mmm of 2,116,000, To- e S S record of e Teud oot Have besn 38474 el enormous stocks. Expan- '.hflrol:M by l:r% hpnetseuly-hli ¥ of output, their ry sition serves as a further strengthened industry.” HAYGAET CORP. EARNINGS. NEW YORK, At 3 R from