Evening Star Newspaper, September 29, 1929, Page 47

; e e e e 2 BROKERAGE HOUSE | INCREASING LOANS EXTENDS OFFICES G. M.-P. Murphy & Co. Pro- vides More Space for Its Customers. BY EDWARD C. STONE. Announcement is made by G. M.-P. Murphy & Co., members of the New York Stock Exchange, of the exten- sion of their downtown office to in- clude the entire main floor of 1510 H street. This will give the firm extensive quarters in its downtown office, as well as its uptown office, located at Con- necticut avenue and K street. The new office, which directly adjoins and has been connected with the old space in the Glover & Flather Building at 1508 H street, will contain the private offices of Robert C. Jones and Charles | Carroll Morgan, also the investment department, the library, consultation rooms and the cashier's department. ‘The library, which will occupy a large space in the front of the building, rep- resents the firm's desire to offer its clients and friends in Washington, an attractive place wherein they may get any financial information they desire. It will be under the supervision of Lewis H. Craven, head of the statistical department, who has _recently come from the New York office to join the organization. ‘The present board room will be en- larged to include a curb board, on which New York Curb stock quotations will be displaved. The present bal- cony in this room, formerly used by the investment department, has been converted into four private trading rooms which overlook the board room proper and from which the translux ticker and the board quotations can be easily read. In the downtown office Mr. Jones and Mr. Morgan will be assisted by John E. Parker, Joseph N. Thompson, Wil~ 'liam V. Freeman and August Schmidt. +In the Connecticut avenue office, A. Chester Flather has on his staff E. R. ' Finkenstaedt, Benjamin W. Thoron, Kenneth Murray and Lawrence Leeby. Several members of the firm will ar- rive in Washington tomorrow to assist the firm's local managers in the open- i ing of the new office. The offices have until recently been occupied by the Southern Railway Co. On completion of the Southern Railway Building on K street the ticket department was moved there. The brokerage firm has been in business here for years, having bought out John L. Edwards & Co., following the death of the head of that firm. Fall Business Gains Forecast. In discussing the business situation 2t a glance, the United Business Service of Boston said yesterday: “‘Although some authorities on the business situation are switching from a bullish to a semi-bearish position, it XSI hard to see how this attitude can be jus- tified by the following facts: (1) bpth bank debits and industrial production are at or near peak levels for all time; (2) American business is including the most satisfactory third quarter in his- tory; (3) out of 40 different divisions of industry only about six are failing to register improvements; (4) most of the major branches of industry are entering the Fall with a substantial back-log of unfilled orders. Although the outlook for business beyond Decem- ber is still rather uncertain, in view of the favorable current trend and the {foregoing facts, we see no reason to change our previous forccast that busi- ness in October and November will continue to outstrip its record of last year.” New Investment Firm Organized. Edward J. Walsh, Washington man- ager of the Northwestern National Life Insurance Co. and Joseph C. Sheehy, a member of the District of Columbia bar, yesterday announced the forma- tion of partnership under the name of E. J. Walsh & Co. The new firm will deal in invest- | ment securities, with offices at 1506 | K street northwest, on the ground floor | of the new Southern Railway Building. | They will begin financial operations on Tuesday. In handling investment securities, the company will be correspondents of W. R. K. Taylor & Co., 49 Wall Street, New York. Wr. Walsh has a wide business acquaintance in the city and Mr. Sheehy was at one time associated in the practice of law with Frank J. Ho- an. ‘ Price Declines Exceed Advances. In commodities, as in_stocks, the present week was marked by an cxcess of declines. The easing in wholesale quotations, however, was by no means general, although in Dun’s list 33 of & total of 55 changes were in a down- ward direction. 7That margin of reduc- tions was considerably wiger than was| witnessed last week, and it contrasted with a slight upward trend a year ago. One of the reasons for the surplus of declines this week was the pressure against prices for hides, in which a number of concessions appeared, and some of the metals moved to a lower Jevel. | On the other hand, most commodities | epart from foodstuits were fairly steady, and cotton goods derived sup- port from the higher cost of the raw material. The latter was influenced by a large demand from spot interesis, while rains in some sections of the beit also had a bullish effect. Bank Women Attend Convention. ‘Tho greatest event of the year in banking circles starts tomorrow when the American Bankers' Association opens the annual convention. While this big meeting is in progress the As- sociation of Bank Women will also meet at_San Francisco. ‘Word has come to the Washington Bank Women's Club that approximate- ly 300 woman bank executives from 34 States will be present. The first ses- sion will be presided over by Miss Mina M. Bruere, assistant sccretary of the Hanover Bank & Trust Co., of New York, president of the association, Woman bank executives have made rapid progress in the financial field in Yecent years. They are generally in charge of th: women's departments of banks, often holding the itle of as- sistamt secretary or assistant treasurer. Many have been instrumental in en- larging the holdings of their sex in stocks and bonds. The last report of the American Telephone & Telegraph Co showed that women now control 50 per cent of the stock of that company and they have long held more than half of the stock in the Pennsylvania Railroad. Daylight Saving Schedule Ends. Quotation service in all the broker houses in this city will start at 10 am. tomorrow, an hour later than during the Summer, cn account of ‘the endin: of the daylight-saving schedule in W ) ! FINANCIAL ' Upper: C. C. MORGAN. Center: A, CHESTER FLATHER. Lower: ROBERT T. JONES. Who are in charge of the local branches of G. M. P. Murphy & Co. The brokerage house on H street has just been trebeled in size. CAUTION PREVAILS INOARKET CIRCLES Traders Await Definite Indi- cation of Trend Before Buying Stocks. By the Associated Press. NEW YORK, September 28.—Caution has cooled the customary Autumn en- thusiasm of many Wall Street market authorities. Professional forecasters and writers of brokerage house letters find their task increasingly difficult. The course of security prices during Spring and Sum- mer demonstrated repeatedly that the old familiar guideposts were no longer dependable. Money rates have been rising steadily in the United States for a year and a half. Commercial paper rates in the open market have jumped from 4 to 6 per cent. Call loans on Stock Ex- change collateral now cost security | traders from 2 to 3 per cent more than last year. One cause of uncertainty is the be- lief in some quarters that action may be taken by the Federal Reserve au- thorities to deflate Stock Exchange credit in order to lower rates, stimulate the bond market and prepare the wi for absorption of a considerable vol- ume of German bonds for reparations purposes. Another factor supporting the view that official or semi-official action may be invoked to ease the credit situation is that the United States Treasury is having to pay in excess of 5 per cent for its short term borrowings, whereas the investing public appears content with an average yield of around 3 per cent on ordinary sf 5. The situation in 1920 and 1921 had factors similar to those operating at present. The Federal Reserve system, after the war-time easy money policy, undertook to reduce the amount of credit used in maintaining high prices in farm lands and- crops. . NEW METHODS USED FOR SPECULATION Buying of Huge Blocks pf Stock Is Favorite Move Among Bulls. By the Associated Press. NEW YORX, September 28.—Market observers bclieve the day is definitely past when one reckless and highly financed speculator or group can manipulate pricss by open market transactions. New methods must be employed. From 1900 to 1925 the y!lrli volume of sales on the New York Si Ex- change averagd approximately 225, 000,000 shares. In recent years the amount has risen rapidly until estimates for 1020 indi- cate a total volume easily exceeding 1,000,000,000 shares. ‘The capital required to swing prices in the face of such trading activity obviously would have to be impressive. The popular means of circumventing this obstacle at present is to start Imy\n{lhule blocks of certain stocks. The tape records a scries of awe- inspiring transactions in_ which 5,000, w.goo or even 20,000 shares change hands in s single transaction. ‘This _sets rumors pop?mg on_all sides, The result frequently is a flood of buying orders from various sources, which boosts the prices of th> stocks in ?ucstlnn and sustains them long enough for the spaculative group to sell out. OLD DOMINION TOBACCO MARKETS TO BE OPENED Epecial Dispatch to The Star. DANVILLE, Va. Septembsr 28.—The Street. The stock market will now re- main open until 3 o'clock, Eastern standard time. It is also expected that the Wash- ington Stock Market will go on the thur schedule this weck when the regular Saturday sessions will be Tesumed. SMALLEST POTATO CROP IN YEARS NOW FORECAST Due to the drought this Summer, the present outlook is for a considerably smaller potato crop than was anticl- pated a month ago. The Government. in its September report, estimated the 1929 yield at 349,000,000 bushels, as compared with 373,000,000 bushels fore- cast in August, This year the crop will be 25 per cent smaller than the record harvest last year, and, with the exception of 1925, will be the smallest since 1919. Prices have shown an up- tobacco markets in the old belt will open for ths new sel season on ‘Tuesday with farmers more optimistic over the situation than they have been for several years, The crop in the old belt is ttedly good this year, being’ E:tlnul-rly well suited to the cigarette de, demands for which are con- stantly increasing. Dealers here with overseas affiliations report that the foreign demand will be strong as stocks in Europe are lower than they have been for several years. Danville will offer half a million square feet of auction space In eight warehouses and will have a hundred buyers representing all classes of the tobacco trade. One of the warehouses has been added to and is so large that it will take a day and a helf to con- ude a sale. - he local market will have capacity of a million pounds of leaf each day. . n production in the United States Rayor ward trend during the past month and ' for Jnh year will reach a total of 131,- & further advance is in prospect. 325,000 pounds, it is estimated. THE SUNDAY STAR, WASHINGTON, D. C, DEPRESS MARKET Seasonal Recession in Indus- try Also Cited as Cause for Break. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, September 28.—It may turn out after all that the advance in the rediscount rate of the Federal Re- serve Bank of New York in August brought the stock market to the part- ing of the ways, just as the formation of the Blue Ridge Corporation &t about {the same time opened the eyes of the {public to the unprofitable as well as th!‘ profitable feature of an indiscrimi- |nate subscription to so-called invest- ment trusts. The higher rediscount rate here has | obviously been an influence in_causing the advance in that of the Bank of Lngland to 61> per cent this week, with the accompaniment of protec- tive measures in other countries. It has not been effective so far in check- ing the expansion in brokers' loans, or in other words, stock market a commodations, for thess today are $740, 000,000 above the early August figure and 50 per cent more than a year ago. At the same time open market rates |have been influenced by the rate of | rediscount, with very ' little money loaned on call this month under 8 per cent, with time loans quoted at 9%j | per cent and debit balances in broker- | age houses facing a carrying charge of 10 and 10, per cent for the month of September. Investment Trusts Shaken. Stocks of new investment trusts and trading corporations have not been act- ing so well since proof was established that some of the strongest sponsored ones go down as well as up. Of course, they have had to take their share of the punishment that comes to a market moving only in one direction for a long time and discounting the future by years instead of by months. If it is true, and investigation sup- ports the belief, that the investment trusts were responsible for advancing the =o-called “blue-chip” issues, some of them must show a substantial shrinkage in parts of their portfolios from the high level at the opening of this month, for there are numerous declines in this character of stocks of from 30 to 40 points, and even as much as 60 points. It is also a fact of some consequence that the indus- trial average, which includes the public utilities, was on Friday 36 points lower than on September 3, and with the exception of August 9, the lowest in three months. ‘There are two clear explanations of the sudden and decisive reversal in stock market movements this month. ‘The first originated in an unsound technical situation, represented in ex- travagant prices for stocks that, while thoroughly seasoned and of undoubted value, had been overexploited and mada to sell at a level discounting several more years of prosperity at the recent pace. Signs of Trade Decrease.. ‘The second infiuence is to be found in distinct indications of business re- cession where this has an effect on the country's largest industrial units. It was first exposed in the unusual decline in the unfilled tonnage of the United States Steel Corporation for Au- gust. This was excused on the ground that the decreass last month should have come earlier and had only been postponed. But_this week the Iron Age stated in its review that ‘“evi- | dences of price weakness have accu- mulated as steel production has de- | clined,” again, it said, “Price develop- ments, although not of a sweeping character, all point to a growing need for new business.” The September bulletin of the Federal Reserve Board noted a decline in pro- duction in basic industries in August, and for the first twe weeks of Septem- ber, a further drop in steel operations. ‘The industries chiefly responsible for this slackening are those manufactur- ing automobiles and indentified with buflding construction. The August statistics from the auto- mobile trade clearly revealed over pro- duction and an unusual number of un- sold cars in the hands of dealers, Linked with this was evidence that 40 r cent of the August production was y the Ford Motor Co., which intensifies competition and suggests lower prices. So we have in this combination a suf- ficient explanation for this week’s de- cljne in the motor shares, and in those of motor accessory companies, to the lowest levels of the year. Aviation Shares Drop. In another direction where there has been public enthusiasm for securities, namely aviation, equally clear indica- tions of over production have developed, with the sequel a tremendous shrinking in the market values of a large body of avation stocks of good, bad and in- different caliber. Linked w: this is the depreciation that has taken place in the shares of investment trusts spe- cializing in aviation. Another disturb- !ing situation is that growing out of an investment in aviation in companies by corporations not necessarily familiar with airplane building or with air trans-'| port, but finding this a profitable outlet for their unemployed capital so long as the public was aviation-minded. One of the curfous phases of the year, and one that may later provoke those who reflect it, is the extent to which corporations engaged in one line of business seem to think that they can be equally successful in others requir- ing entirely different policies and methods. While the theory of diversi- fication on which the investment trust is founded has been lost sight of in the activities of the trading corporations, many_industrial companies have gone far efield in spreading out their capital until the m acturer of shoe polish sits on the same board of directors with the retailer of tobacco. Rail Earning Ignored. Proof that the internal condition of the stock market has more affected its actions recently than trade conditions is given in the wa that railroad shares have slumped in the face of the August earnings and the exhibit of net results for the first eight months of the year. ‘The latter surpass those of any similar period since the carriers were rescued from government control in 1921, The average advance of nearly 15 points in railroad stocks, which place between August 9 and September 3, when Wall Street favored railroad securities more than any other group, has ncarly all been lost. - It is hardly to be supposed that old and new investment trusts that pur- chased “rails” Jast month haye dum) +hem out so soon, with all the statis- tical evidence surmm.nx their position and favoring higher dividends. Con- sequently, this group should be in a strong position when the readjustment thruogh which Wall Street is now going has run its course. Hatry Collapse Raises Echo. It is a tribute to the i condition of the New York mari and to the supervision that the New York Stock glv d ties that res to liste t almost none of the troubles that have e o past year and 8 1es. ey ve O i extended accounts in individual shares or groups of stocks in Canzda, in, Cali- fornia and in Chicago. The latest episode to disturb the New York mar- ket took place in Lindon in the collapse of the Hatry shares, There have been enough extravagant movements in American securities since the end of 1927 to draw some parallels | between them and those that mett favorites of the British speculating pul lic until & few months ago. These Special Disvateh to The Stah NEW YORK, September 28, 1929. Stocks (average of 50 issues). Bonds (average of 40 issues)....... Foreign bonds (average of 10 issues) Federal Reserve ratio.......ocoeacsensensenss T3, llonel{ rates in New York: Cal Time Unfilled steel orders. Pig iron production. Building permits: Number of citie: Commercial failures (R. G. Dun & Co. Number .. Liabilities .. Revenue car loadings All commodities. . Grain and grain Coal and coke. Forest products...... Miscellaneous products. Ore Live stock. ‘This Week. Last Week. High, Low. High. A . 30070 29521 30623 30017 This Week. Last Week. X 85.90 .104.76 104.64 This Week. Last Week. Year Ago. 8 73.8 68.5 This Week. Last Week. 8 to 10 7 to 10 9 to 9 Month of Month of Month of Aug., 1929, July, 1929, Aug., 1928, 3,658,211 4,088,177 3,624,043 121,151 122,110 101,180 577 = i 571 $256,720,837 289,156,107 $314,551,218 reports) : 1,762 1,752 1,852 $33,746,452 $32,425,519 $58,201,830 ‘Week of September 14, 1929, Previous week. Year 2go. + 1,153,062 1,017,072 1,138,060 52,867 45,7 7,009 . 202,994 174,137 190,404 . 64,798 60,6 65,19: 464,208 407,573 460,340 . 69,600 67,186 63,932 . 29,263 27,266 24,164 INVESTMENT TRUSTS BECOME POWERFUL FACTOR IN MARKET BY L A. FLEMING. Investment trusts are growing with each passing day until they now pos- sess gigantic capital, es ted at about $3,000,000,000. A corporation has been organized in New York that Fropoul to Yuz across an investment rust firm with a capital of a billion of dollars. ‘The name of this corporation is the Marine Midland Co. corporation will exercise a controlling interest in banks and trust companies in New York State with combined resources of $500,~ 000,000, as announced by Stone, Web- ster & Blodget, known internationally as an investment unit of a great bank- ing house. Prom this start efforts of the com- pany will extend to other States. Ap- plication will be made for a charter for Marine Trust Co. of New York City, capital, $25,000,000, which will be filiated with the Marine Midland Co. Sixteen big banks and trust com- panies throughout the State of New York have been chosen for absorp- tion by the big trust, and more will be chosen. It is proposed to exchange common stock for the stock of the banks acquired, this requiring about 4,000,000 shares of the 10,000,000 shares of common stock, no value, investment company stock. Investment trusts are the most pow- erful factor in the stock market today, enabling thousands of ple of com- paratively small capital to take chances in the market without the danger of meeting with as serious losses as they might_encounter when operating indi- vidually and more or less blindly, or on tips—which are always dangerous. Trying to Reopen State Banks. In different sections of the country State banks that were f¢ to close last year and early in the present year are making desperate efforts to re- open. In Florida, where the situation has been especially desperate, with money a scarce commodity, some of the closed banks are making efforts to freeze ths deposits for a period of four years as a consideration of im- mediate reopening. Not that they ex- pect four years to elapse before the banks repay depositors, but they de- sire the assurance that an emergency ‘be provided for. A better way has been adopted in Nebraska, where there are many closed banks; there it is proposed to scale down deposits to the actual quick as- sets of the banks, reopening to be immediately thereafter. They Are Asking Bankers. Bankers find a large part of the business day used up answering the questions of their customers and others regarding this or that or so- liciting information from the banker regarding the best buy on Wall Street. Men, women and young people, some with little if any knowledge of se- curitles or market customs, are per- sistent. Investigation among a number of bankers disclosed the fact that in- variably they advised caution and urged the purchase, if investment is to be made, of bonds, which are now selling at low prices and not likely to 1;0 f,fl at all seriously from present evels. | No question but what there are savings deposits being invested these days, as well as the wealth of big men, in business and manufacturing. Local Banks Lost Profits. ‘The very severe decline that has re- cently taken place in bonds has been the cause of quite a serious loss to many of the larger banks that have long been in the habit of carrying| WHEAT— High. large amounts of these safe securities. | B3ep - A Frequently they have had hrfi FR1tH profits in their bond accounts that di 145% not show in their statement and have RN— Py been referred to from time to time a8 |pecember '96% “hidden assets.” e banks m: ed 101% to liquidate part of their holdings, but 1.08% the reaction has been too speedy for 534 complete action. Not only profit | Dec ,galq disap) in nearly every issue, but | Marc :,::: loss has been sustained. R | Capital Traction at New Low. last century, and far back at that, to find the records of Capital Traction shares selling at a lower price than now prevalent. favorite of the Washington stock list enthusiastic friends cannot see thing to encourage a belief in a spcedy recovery. The present utility commis- sion has not given any sign or hint that could be twisted to indicate that higher fares are possible in the future, even though every month as it rolls along shows large gross and net de- creases in earnings. The dividend on Capital Tracion for October 1 will took | be paid on the usual 7 per cent basis. Some directors of the company admit that it should be cut, and 5 per cen! has been suggested—which would b much more in proportion to the earning than the 7 per cent rate. The compar apparently is giving consideration to ol¢ ped | time shareholders who have long pinne their faith on the one-time favorite. At 5 per cent the return on th shares would be about equal to al- comparisons run meinly in the direction o our | ‘finance tion, don marke! 1920, At the same time money rates advanced on the it of Europe and the absorption of credit for ula-~ tive purposes in the United States has Thabker of the womd. market of the world. 1t is difficult to sce how of when thhwvlgl:us circle of credit expansion is ess, which importance o holders of to corporation managers, Dece You will have to go back to the | tfax has come upon ill times, and its x:\no;c MY Octe | trading on week end cover New Firms Are Being Organized at Rapid SEPTEMBER 29, 1929—PART Rate, With Enormous Resources , and Influence. most anything else on the local board. There are one or two stocks that ma net: a little more, but they are excep- tional. Potomac Electric shares are all at a premium, with earnings continuing on a large scale. A Clever Card. ‘The Liberty National Bank has just issued & clever bit of publicity in the interest of its trust department that will hit many a man as the bald truth, while others, admitting it to be a fact, will charge it to the missus. She wants to try it. LAST WILL Al ‘TESTAMENT. To my wife and family I hereby bequeath, in addition to all my ‘warldly goods, the following special items : 1. All the worry and uncertainty of my investments, large and small. 2. All responsibilities and cares in connection with the administration of my estate. 3. The privilege of dealing with the tangled threads of affairs which are altogether outside their knowledge and experience, And this I do, being of sound mind and possessing knowiedge of better ways of doing these things. (Scal) A. B. A. Convention, of this week the Ameri- rs’ Association will open a four-day convention at San Francisco, one that will be largely attended by bankers from all over the country. Matters of the greatest importance to the bankers of the country will be dis- cussed. The fast-growing importance of the investment trust companies, the new group banking, the growth of trust companies and numerous other inter- esting subjects will be discussed. ‘Washington will send the smallest delegation that has attended an Ameri- can Bankers' convention in many years, probably for the reason that a conven- tion of the same organization was held in Los Angeles three years ago, when a large delegation of our bankers made the trip, taking in the entire State en route, The convention last year was in Philadelphia and the year before in Houston, Tex. Large local delegations attended both. This_year Hill Hoskinson of the Riggs Natlonal and E. J. McQuade of the Liberty National have the honor of representing Washington. -— GRAIN MARKET. Wheat Closes Heavy and Lower as Foreign Demand Slackens. CHICAGO, September 28 (#).—De- spite aggressive buying on the part of some houses with foreign and North- west connections, wheat prices under- went material setbacks today, especially in the late transactions. Unsettlement of the stock market had a general bear- ish effect on wheat values, as did re- ports of rains in Australia, better field conditions in Argentina and a railroad embargo on wheat shipments in Can- ada. des, the slack European de- mand today for wheat shipments from North America continued. Wheat closed heavy, 7c to 2c net lower, corn c to 13ic down, oats Ysc to J,c off and provisions unchanged to 20c decline. The once blue ribbon | Dec Trade Buying and Late Covering Result in Gains. NEW YORK, September 28 (#).—Un- certainty as to the further course ot he tropical storm and a fairly even ivision of buying and selling orders as 'rices approached the 18';-cent level or December contract were reflected y rather irregular but narrow fluctua- ons in the cotton market here tods An "fl{udckmme under Southern sell: ng was checked by trade buying, how- aver, and prices stiffened up in the late December advanced lm‘?‘.fl to 18.62 and closed at 18.60, with the market closing steady net unc to 8 points higher. closed Eember, Cotton PPN I July, 1 December, ' 18.54. ; March. ‘October new, 18. Orders Box Cars. NEW YORK, September 28 (#).—The Boston & Maine’ has ordered 1,000 box cars and 500 T cars from the Standard Steel cm ¢t them having come from 2. Week’s Financial High Lights IRA“ING |S UUIH AT D. C. MARKET Dealers Report Some Im- provement During Week. Outlook Held Good. A little touch of frosty weather 15 T ded by wholesalers as the one g necessary to put added life in business. “Cold weather usually sharpens the | appetite and drives vacationists home,” | was the observation of a dealer, “and 1if this combination fails to increase trade it is difficult to imagine how an increase can be brought about.” Close of last weck’s market found wholesalers reporting only an average week’s market. “Business was not brisk,” said the merchant, nor was it as dull as it has | been many times before at this season. i On the whole, however, it was only . 2 | fairly satisfactory.” Supplies Are Large, ‘That business was not brisk was no fault of dealers. Immense quantities of commodities were on hand through- out the week, even Monday's receipts, usually small, were fairly large, And the commodities offered the retail trade, according to wholesalers, were of the very best quality and prices were right. It is believed that higher temperatures had something to do with the quiet trading part of the week, the warm weather presenting a lifeless condition which seemed to affect both sellers and buyers. Lower temperature yesterday was wel- comed by dealers and growers, the lat- ter 1eporting the dry condition of the ground the past few days having retard- ed the growth of late vegetables, In spite of the dry condition of the ground, however, growers had fairly heavy re- cel‘pt.s of vegetables for yesterday's mar- Growers are anxious for frost to hold off as late as possible, They hope there will be no repetition of early frost of recent years. “It is too bad to have a biting frost appear early and do an inestimable amount of damage,” remarked a grower “But,” he added, “such is often the case, and then follows a long spell of warm weather. The one frost in such instances means the cutting down of much growing vegetation which other- wise would continue to grow for & much longer period.” While most of the perishable com- modities in the fruit and vegetable line were pretty well cleaned up before the close of the week's market yesterday, there was some stock to be carried over until tomorrow. Prices at the close of the market yesterday, the same as quoted the past few days, jobbers’ prices being slightly higher, were as follows: Butter—One-pound prints, 48a49; tub, 47a48; store packed, 30a32. Eggs—Hennery, 48a50; fresh selected, 46a47; current receipts, 45a46. Poultry, alive—Turkeys, hens, 35; toms, 33; Spring chickens, large, 30; medium, 27a28; broilers, 30; Leghorns, 25a26; fowls, 28; Leghorn fowls, 22a23; roosters, 22; ducks, 15a20; keats, young, 60a70; old, 35a40. Dressed—Turkeys, 38a40; Spring chickens, large, 38a40; medium, 36a37; broilers, 38; Leghorns, 34a35; roosters, 26; ducks, 28a30; keats, 8021.00. Meats—Beef, 221;a25; veal, 26a28; : lamb, 25a27; pork loins, 33a35; fresh i hams, 26; fresh shoulders, 22; smoked hams, 28; smoked shoulders, 20; bacon, 28; lard, in bulk, 14; in package, 15. 12L§? stock—Calves, 15a15%3; lambs, a13. « It is generally believed there will be changes in the prices of several com- modities announced early in the week. Due to extra heavy receipts the past few days, prices of chickens wog a decided drop. Yesterday, however, much of the surplus stock was disposed of, so that stock on hand tomorrow morn- ing promises not to be so heavy. Monday's receipts seldom are heavy, it is stated, and few, if any shipments, are expected tomorrow, but Tuesday's deliveries may tell a different story. It is believed poultry raisers are anxious to get rid of supplies in order to avoid the expense of feeding later on. Receipts of keats the past few days were fairly heavy, and dealers ex- ?gnenced no difficulty getting rid of el m. “While it is true that keats are small,” observed a dealer, “it is equally true that the meat is much better than that of other poultry. They simply take the place of birds formerly served in public houses " Dressed keats sold at 80 cents and $1, all young birds. ‘Old keats, rated very tough, usually are sold alive at about 50 cents. Delicacies Plentiful. Retailers the past week experienced no difficulty getting supplies of deli- cacies for their consumers, wholesalers having practically every variety of fruits and vegetables to offer. Meat dealers had choice meats of all kinds and deal- ers in marine products had choice fish, oysters and other products of the water to meet demands. Both soft and hard crabs and crab- meat have become scarce. It is believed, however, that additional Summer weath- er in the near future may revive the crabbing industry and result in the receipt of increased quantities of the crustaceans, . “Scarcity of crabs probably is a direct result of so many crabbers abandoning their work and engaging in the business of tonging oysters, said a wholesaler of marine products. “Warm weather,” he added, “has kept down the demand for oysters and prob- ably suggested to some of the oyster- men the advisability of returning to the crabbing industry.” Receipt of frogs, some from Louisiana and some from nearby, was the interest- ing feature of busin at Municipal Fish Market, The Léuisiana frogs are very large, according to dealers, and the past few days found ready sale at as much as $6 a dozen, the smaller ones from nearby selling at $3. Increased receipts of hothouse mush- rooms, many from the Kenneth Square, Pa., nejghborhood, interested both deal- ers and consumers the past week. Pirst receipts sold around 75 cents a pound, but the price gradually lessened the past few days, and it is expected they will drop as low as 40 or 50 cents the next few days. Heavy receipls of vegetables from nearby farms continued throughout the week, prices being reported by dealers as cheap for so late in the season. Tomatoes have continued in fairly heavy receipts since early in the Sum- mer, and it is reported that canneries in Maryland and Virginia are in opera- tion to the extent of insuring plenty canned goods the coming Winter sea- son. Prices of white potatoes continued higher than usual, while heavy receipts and lower prices of sweet potatoes con- tinue. Lima beans have not been so gl.enmul the past few days, but receipts ve been equal to the demand, the beans selling around $2.50 & bushel. Other vegetables, including beets, carrots, onions, string beans, celery and | cabbage, continued in plentiful receipts. vehnn:beutummumyl vegetable, most of them offered in the local market the past week having come from the West. Fruit Shipments. All varieties of fruits continued plen- tiful up to the closing of the market at the end of the week. Alligator pears continued in heavy receipts, enough ‘of jorida to prac- glut_the market. Good quality fruit brought fairly good prices, while some, O e DR 200,03 daers ndition, act 3 wRecelpu of peaches, chiefly from New tically York, were heavy enough to supply | were demands at prices around $2.75 and $3, while some from other sections, not | from $1 to $3 a bushel. Several ' FINANCIAL IBANKERS WILL ACT JOHN G. LONSDALE, First vice president of the American Bankers’ Association, will be advanced to the presidency during this week’s «onvention in San Francisco. He is mpmldmt of the Mercantile-Commerce & Trust Co. of St. Louis, and has Mld.. brilliant record in the financial worl FARMERS WILL GET INGREASED PROFIT Low Crop Yield Expected to Benefit Agricultural I Sections. Svectal Dispatch to The Star. NEW YORK, September 28.—The Alexander Hamilton Institute says that the farmers, as a whole, may enjoy as good an income in 1929 as during the past season because of the rise in prices, but the Nation will be adversely affected by the increased cost of food. The prospect is, however, that any business recession in 1930 will be re- latively moderate. Continuing, the business review says: The widespread drought which af- fected aimost the entire country during August resulted in -substantial down- ward revisibns of crop estimates. The present outlook is thay the total harvest this year will be 5 per cent smaller than auticipated 2 month ago and 9 per cent smaller than tne harvest of 1928, The corn crop, particularly, suffered from the lack of rain during August. Eearly in the season it was expected that the 1929 corn yield would nearly squal that of a year ago, but it is now estimated at only 2,456,000,000 bushels as compared with 2,836,000,000 bushels harvested in 1928, a decrease of nearly 14 per cent. The wheat crop escaped the effects of the drought auring August. Spring wheat was practically matured at the beginning of the month and the Winter wheat crop was already made. Spring wheat, however, suffered from un- favorable growing conditions earlier in the season and the present outlook is for a yield of only 217,000,000 bushels this year, as against 324,000,000 bushels last year. The Winter wheat crop nearly equaled that of a year ago and it is due chiefly to the curtailment of Spring wheat production that the total wheat yield will amount to only 786,- 000,000 bushels this year, es against 202,000,000 bushels last year, a de- crease of 12.9 per cent. Drought Reduces Other Crops. ‘The oats crop matured early this year and, like Spring wheat, escaped ~the August drought. However, due to prev- lous unfavorable conditions, the oats crop is expected to amount to only 1,205,000,000 bushels this year, as against 1,449,000,000 bushels last year, a decrease of 16.8 per cent. The cotton, hay, potato and tobacco crops all suffered from the drought in "August. The cotton and tobacco crops, however, still promise to be larger than a year ago, while the hay crop will be about equal to the 1928 yield. The cotton crop is now estimated at 14,- 825,000 bales, as against 14,478,000 bales last year, the tobacco crop at 1,462,000, 000 pounds, as against 1,378,000,000 pounds last year and the hay crop at 106,000,000 tons, as against 105,900,- 00C tons last year. ‘The potato yield and all of the fruit crops will be substantially below the 1928 harvests. The potato crop is now estimated at only 349,000,000 bushels, a decrease of 24.8 per cent from the record crop of 464,000,000 bushels raised last year The apple crop will total only 146,000,000 bushels this year, as against 186,000,000 bushels last year, a decrease of 21.5 per cent. Of eight important crops, the yields of corn, wheat, oats, potatoes and ap- plies will be smaller in 1929 than in 1928, the yields of cotton and tobacco will be larger, and the yield of hay will be about the same. The combined value of these eight crops amounted to $6,827,000,000 in 1928 or 75 per cent of the total value of $9,093,000,000 for all crops. Larger Cash Incomes Likely. Crop prices at the present time are sufficiently above the levels of last year to more than offset the curtailment of the yields and it is possible that the total value this year may be half-a- million dollars greater than the total value last year. This indicates that the producers of cash crops, such as wheat, cotton, potatoes and fruit, will enjoy larger incomes than in 1928. In the case of producers of feed rains, such as corn and oats, the out- ook is less favorable. Feed grains are mostly marketed in the form of live stock. Reduced yields have recently forced the marketing of a sufficiently heavy volume to depress prices. Up to the end of the Summer cattle, hog and sheep prices were running above the levels of last year, but now they are considerably lower. It is probable that live stock pro- ducers during the coming season will receive less money than last season and this decrease will offset the better in- comes received by, cash crop producers. The combined income of the farmers, therefore, will probably be about the same as a year ago. ‘The country as & whole will be ad- versely affected by the reduced crop ylelds this ycar. Farm labor will not be so well employed. railroads will suf- fer from a reduction in freight, Na- tion’s food bill will be increased and the people will have less money to spend for clothss, furniture, automcbiles and other items which cgntribute 1o ON CHAIN QUESTION Convention to Consider Prob- lem of Branches Also-—0Opin- ion Is Divided. BY JOHN F. SINCLAIR, Special Dispatch to The Star. SAN FRANCISCO, Calif. September 28.—Thousands of bankers, old and young, country and city, arrived here for what promises to be the most dynamic meeting the American Bankers’ Assoclation has witnesseed in a decade. The two questions foremost in the minds of every one of them are: First—What is the next step in bank- !ing? Is it to be along chain or branch banking lines? Second—How are national banks going to fare in the new plans? Seven special trains have already ar- rived The country banker from Lousiana is here brushing elbows with his city banker friend from New York. Yet it would be difficult for a stranger to pick out the one from the other. ,sundndlutlon and uniformity seem to have been at work in the remotest parts of the nation. The Country Banker. But the country banker is here to find out some very definite things. He wants to know where he's going to Jand in this new merger era. Twenty-five thousand country bankers are anxious to have that question answered to their satisfaction. It was just a little over six months ago since the First Bank Stock Cor- poration and the Northwest Bancor- poration, both centering in the Twin Citles, started their expansion program of adding other banks in the Northwest to their holding companies. Hardly a week has passed since, when either one or the other of these two holding com- panies has not announced another big bank affiliation. Both groups are powerful and very strong. The First Bank Corporation has already $360,000,000 of banking re- sources in 27 key cities of Minnesota, North Dakota, South Dakota, Montana and Upper Michigan. But the Northwest Bancorporation is right at its heels with total assets, in- cluding its recent addition of the Mid- land National Bank & Trust Co. of Minneapolis, of $345,000,000. It owns 35 banks and trust companies in 30 cities in six Northwestern States. Its banks reach into Iowa, beyond the ninth Federal Reserve district. Together these two bank holding corporations have more than $7,000,000- cém tox assets alrcady tied up. A nice start. Organizes Holding Company. So active have they been that the First Wisconsin National Bank of Mil- weukee has decided to enter the field. During the past two weeks it has organized a holding company, and has taken over important unit banks in Oshkosh, Eau Claire and Menominee. So this bank with its 14 branches and 17 affiliated banks, all in Wisconsin, is starting with resources already over $230,000,000. When asked the reason for this new move, Frank Pierce, president, said “it (this holding company) would probably not have come about so soon had it not been for the activity of other chain groups in the vicinity and the rapidity with which the consolidation idea has spread throughout the country.” Doubtless Mr. Pierce was referring to the activity of the two Minneapolis holding companies which have practi- cally led the entire banking world in this field during the last year. The form of organization and the activity of these three Northwestern groups will be given close study at the bankers' convention, And so will the brand-new Midland Marine Corporation, headed by George F. Rand, president of the Midland Trust Co. of Buffalo. This corporation is a holding company organized to acquire controlling interest in banks and trust companies throughout the rich State of New York and elsewhere. The else- where movement began last week whe Rand announced ths Midland had add- ed 16 North Carolina banks, adding re- sources of $50,000.000 to its former re- sources of $575,000,000. Mr. Rand has already stated that the policy of the new corporation is not to impose any outside control on the local banks but to co-operate with them in solving their larger problems. See More Mergers. It is well to recall that in New York City recently, Charles E. Mitchell, president of the National City Bank, closed a deal with the Corn Exchange Bank whereby the National City ac- quires the most strategic bank locations in the metropolis So New York on the one side and San Francisco on the other, both with tremendously power- ful branch banking systems, are facing these holding companies already control- ling more than one and one-quarter billions of resources in seven States. And every one agrees that the com- binations and mergers in the banking field have only begun, But another question, almost as far reaching and significant, is just how the national banking system is going 1o maintain its position in the merger era Jjust ahead. John W. Pole, the controller of the currency, who is here to address the bankers, declared before the Maryland Banker's Association at Atlantic City on May 23 last, that “the national banking system was in a critical state.” He referred to the fact that 79 national banks with total resources of almost $3,000,000,000, had given up their national bank charters and taken State charters, because these banks found it more advantageous to operate under trust companies’ charters. This situation, however, is one with which Congress has power to deal. The national banking act can be amended to meet the difficult competition that State incorporation is now giving. But will Congress do it? One speech bound to create much interest is that of Rudolph H. Hecht. president of the Hibsrnia Benk & Trust Co. of New Orleans, who will present “a summary of the genera! situation analyzing the elements of group, chain and unit banking.” Credit Conditions. It was Mr. Hecht who slartled the convention in Philadelphia last year when, warning against the growth of chain banking, he referred to It as a “bootleg” form of branch bankin BSo these two gquestions seem vast) more important to the banker today than the Federal Reserve rediscount rates or the high price of credit. Basic credit . conditicns will be dis- cussed thoroughly. So will Federal Reserve policy. But the country bankers are here for 1 prosperity, e U. 8. Steel Stockholders. NEW YORK, September 28 () Holders of United States Steel Corpora- tion common stock numbered 110,166 on the date of the closing of the books for the third quarter dividend. 'This figure constitutes a new high rec- and is an increase of 4,554 over number on the books when the scr |quamr disbursement was paid, quality fruit. Seckels, Anjous, Bart- letts and Sheldons were among the varieties received. Honeyballs, honeydews, cantalnin: and casabas were among other fru received that found ready sale. Apples Teceived large quantitles throughout the week, prices rarn i verio- in such good condition, sold as low as | ties of grapes also were received In $1. There were mot 50 many pears received, but most of them were top large quantities, prices being determined by the quality of the fruit. something else, They want to know now where they are going. (Copyright, 1920, by Morth American News- Daper Alliance.) INCREASE IN LIVING COSTS IS FORESEEN Special Dispatch to The Btar. NEW YORK, September 28.—An in- crease in the cost of living this Fall and Winter is foreseen by the Brook- mire Service, in ifs latest weekiy analy- sis of husiness conditions. It will be caused by the smaller crops. Tonsumer income, however, remains large and tne analysis predicts a high level of activity in the retail*trade in the Fail, with exceptionally active holiday trade. Smallez crop production means higher prices for farm products and well sus- tsined farmer purchasing power, the analysis says, but it also means a re- duced volume df goods to be trans- ported and processed and higher cost of certain P materials.