Evening Star Newspaper, November 12, 1929, Page 12

POULTRY RECEIPTS - ARE LARGER HERE Many Turkeys on Hand at Wholesale Market—Vege- taples Plentiful. - A fairly heavy sprinkling of turkeys, alive, this morning gave the poultry | market an appearance suggestive of the approaching Thanksgiving holiday sea- son. Receipts were nothing like heavy, dealers reported, heavy receipts not be- ing expected until the first of the coming week. The season for turkey dinners in churches is on, according to reports, and hundreds of the best of the pick of the king of the barnyard fowls are being ordered. Most of the turkeys thus far received were in splendid condition, dealers reported, even the small Spring turkeys being fat and attractive. Receipts of chickens, ducks and keats also were fairly heavy this morning, and dealers received shipments of rabbits, mostly from Tennessee and Missourt. Forty cents was the price of the best of the rabbits, culls selling as low as 15 and 20 cen! 2 Tomatoes Scarce. There was an absence of homegrown ripe tomatoes on the farmers’ line this morning, gro «fl saying the season for them is over. -THeuseason has extended over a much longer period this year than heretofore, early receipts having been light and prices high, Green to- matoes were offered this morning around $1 a_bushel. Growers had plentiful supplies of spinach, kale and turnips o offer at 50 and 75 cents a bushel, and they also had quantities of other vegetables. Pumpkins continue in heavy supply. On the commission hause line there were heavy receipts of fruits and vege- tables, most of the latter coming from distant points, prices tontinuing prac- tically unchanged. Dealers reported a continued firm condition of the egg market. Receipts of hennery stock continue. greater in proportion than the current receipts, and consumers are taking to the cheap- er grades. Prices of both butter and eggs were reported unchanged this morning, meat prices also being the same as prices quoted yesterday. Trading this morning was reported heavier than during the past few days. Wholesalers had supplies of all com- modities in excess of demands, prices of most commodities being the same as yesterday's prices. Today’s Wholesale Prices—Jobbers’ Prices Slightly Higher. ‘Butter—One-pound prints, 44a45; tub, 44ad415; store packed, 30a32. Hennery, 55; fresh selected, 48a B0: current receipts, 45. Poultry, alive—Turkeys, young hens and toms, 35a37: old he: 5; old toms, 35; Spring chickens, large, 25a28; me- dium, 26a27; broilers, 30a32; Legaooa dium, 26a27; broilers, 30a32; Leghorns, fowls, 28a29; Leghorn fowls, 20a21; roosters, 18; ducks, 15a20; keats, young, 40a65; old, 30. Dressed— ‘Turkeys, young, 43a45; old, 39a40; 8) chickens, large, 35a36; medium, 32a33; broilers, 37a38; roosters, 24a25; ducks, 29a30; keats, 70a80. Meats—Beef, 20a22; veal, 24a28; Jamb, 26a27; pork loins, 23a26; fresh hams, 22a25; fresif Bhoulders, 20a23; smoked hams, 25a26; smoked shoulders, 18a20; bacon, 28; lard, in bulk, 14; in packages, 15. Live stock—Calves, 14,a15; lambs, 12%5a13. Fruit and Vegetable Review. The daily market report on fruits and vegetables (compiled by the Market Ne Service Bureau of Agricultural mics) says: - Sales to jobbers except where other- wise noted. Apples—Supplies moderate; demand barrels, Vir- BY A POOL MANAGER, AS (In the third article on Wall Street pools, the pool manager tells how the income taz keeps big operators from cashing their “dlue chips”— the stocks whose sale would mean that Uncle Sam would step in for his share. Thus many profits re- main on paper.) CHAPTER 1L Pools in Blue Chip Stocks. At luncheon a few days ago a retired | | banker of the “old school” was telling me of his first “fiyer in the stock mar- ket” some 30 years ago. On the advice of influential friends he had bought 200 shares of Atchison Rallway com- mon stock at 19. The “tip” proved good and shortly after the price advanced above 30. So anxlous was the young banker to collect his profit that he lost his hat as he ran to his broker’s office to place a selliing order. Later in-the conversation this man told me that in 1926 he purchased e Grimes, fair quall 3.5024.00; unclas- sified, Black Twigs and No. 2, 2% inches up, Black Twigs, 3.5024.00; bushel batkets, Virginia, Staymans, U. 8. No. 1, inches up, 1.75a2.0 mostly 2.00; U. S_No_ 1, 2% inches] up, 2.25; 3 inches up, U. 8. No. inches up, Grim 0; U. S. No. 1, 21, inches up, Staymans, fine quality, 50; U. S. No. 1, 24 inches up, Di licious, 2. unclassified, Deliciou ordinary quality, 24 inches up, 1 21, inches up, 1.50; 23; inches up, 1.7 Pennsylvania, Yorks, unclassified, 2!2" inches up, 1.25; 2Y; inches up, 1.00; , 2V inches up, Grimes, Washington, Delicious, me s, extra fancy, 3.75; ns, medium to large size fancy, 3.50; Jonatl extra_fancy, Cabbage —Supplies moderate; demand light, market steady; New York, 100- pound sacks, Danish type, mostly 1.8 South Carolina, barrel crates, appr imately 100 pounds net, pbinted t; 2.75a2.85; 1!,-bushel hampers, 1. 1.75. Celery—Supplies light; demand mod- market slightly stronger; New mostly 3.00; California, no early sales. Lettuce—Supplies mederate; demand moderate. market slightly stronger; California, crates, Iceberg type, 4-5 dozen, 3.00a3.50; few higher; ordinary quality, some slimy, low as 2.00. Onions — Supplies light; demand light, market steady; New York, 100- pound sacks, yellows, U. S. No. 1, me- dium to large size, 2.00a2.15; Indiana, 100-pound sacks, yellows, U. No. 1, medium size, 1.90a2.00; Colorado, 100~ pound sacks, Valencia type, U. S. No. 1, large size, 2.40a2.50; 50-pound sacks, U. 8. No. 1, very large size, 1.85a2.00. Potatoes—Supplies liberal; demand light, market steady: New York, 150- pound sacks, round whites, U. 8. No. 1, 4.2524.40; Maine, 120-pound sacks, ?r;tn Mountains, U. S. No. 1, 3.60a .75, Sweet potatoes—Supplies light; de- mand light, market steady: Eastern Shore ,Va., cloth-top barrels No. 1, 2.75; Eastern Shore, "Mt bushel hampers, yellows, No. 1, 1.15a1.25. String beans.—Supplies light; no good stock on the market; demand light, market steady; Virginia, Norfolk sec- tions, bushel hampers, green, best, fair quality, mostly 2.50; poorer wide range in prices, 50a2.00; South Carolina, too few sales reported to quote, s'tm plies very light; demand light, market steady; Florida, bushel hampers, medium size, wrapped, 3.0 gz&per crates, medium size wrapped, Eggplant—Suppliesanoderate light, market slightly weaker; Florida, pepper crates, fancy, 4.25a4.50, Tomatoes—Supplies . light; demand ; demand WHET EVENING STAR, TWASHINGTON, D. €. TUESDAY. NOVEMBER 12, WALL STREET POOLS TOLD TO JAMES ABELLE. 10,000 shares of an industrial stock then selling under 100. During the bull mar- kets of the succeeding three years this stock steadily advanced, with only minor interruptions. On several . occasions rights were granted stockholders to sub- scribe to new issues at favorable prices, This year the stock was “split up”— giving stockholders several additional shares for each share held. The 10,000 Isharts of 1926 have grown to more than 50,000 shares, which at present quota- tions show a profit of nearly 500 per cent on the total cost to my ex-banker friend. “Did you lose another hat on your way to collect the cash?" I asked. “I can't take the profit,” he replied plaintively. *“The income tax would amount to more than I am likely to lose in any possible reaction.” Hereln lies the explanation in many cases of the great strength of the mar- ket for the “blue chip stocks”—the high- priced issues selling above $200. In- come tax is not payable until profits are realized in cash. And, regardless of market fluctuations, many wealthy in- vestors Tefuse to sell and take profits on the “good stocks” in which they have large accumulated paper profits. This situation gives the pool manager a “play” to an extent unknown a few years ago. Qn reactions the price of Stocks in this class may “dip" 50 points or more without unsettling the commit- ments of the larger investors, and on advances there seems to be no limit to the willingness of wealthy stockholders to refrain from taking profits. When satisfied as to the “long pull”/future possibilities of stocks the big sharehold- ers, both insiders and outsiders, con- tinue to “stay aboard.” no matter how high prices climb, The pools have to deal only with the smaller investors, the margin traders, and the investment trusts. “Big Shot” Heads Pool. | Another instance of this reluctance on the part of wealhy men to accept profits on which large income taxes would be payable was furnished last August, when a prominent pool mana- ger was relieved of the necessity of marketing his stock. Before the May reaction of the market this operator was celled in by some of the important stockholders of a well known corpora- tion, the shares of which are distinctly in the price category of “bluc chips.” The corporation has assets of enormous potential earning power—assets which appear on the balance sheet, however, at the original cost, only & small frac- tion of the probable value. Reports are published only at the end of the fiscal year and cover only current earn- ings, with no_indication of the future possibilities. No one but the insiders is in position to make an accurate esti- mate of the true worth of the shares, which command a_market price much higher than could justified un the basis of statistical analysis. During the early Spring there had been irregular price movements in the market for"this stock, and it was feared that there might be considerable liguidation by shareholders who were without com- plete information covering the *“con- cealed values” behind the issue. The competitive situation in the industry made it inadvisable to publish this in- formation, and it was thought desirable to organize a powerful pool to “take care of the stock.” ‘The man selected to conduct this op- eration is well known in Wall street, one of the “big shots” of the market. After making an examination of the assets and prospective earning power of the corporation the big operator stated that he would handle the market for the stock. ‘How much money will be neces- sary?” ‘Twenty million dollars as I call for it,” he said, “and another $20,000,000 if I call for it.” light, market firm; California, lug boxes, ripes and turning, wrapped, 6x6 and larger, 2.50a3.00. Cauliflower- In the Kerry features The Mode—F and Eleventh A Fra Park employs service-giving fabrics from mills of quality ~—the world over. One of the outstanding Custorn Service. .. Reddy-{o-put-an He agreed to furnish one-eighth of the amounts named for his own ac- count. For his management of the op- eration he was to receive 10 per cent of the pool profits, in addition to the profit on his personal participation. The pool Tailored at Fashion Park Par-ke ey tafloring of Par- overcoats Fashion is its Par-Kerry Fleece Overcoats—with rag- lan and regular shoulders— > o AND MORE jwas formed on the spot, most of the!but with the definite facts and figures ed members being recruited from the Jarge stockholders of the corporation who were present. The $40,000,000 was to be supplied in cash as required, each of the pool members making his own credit arrangements. Stock was accumulated through a period of six weeks ending about the 15th of June. By cleverly placed buy- ing orders at crucial moments a bottom price for the stock was established at a figure 40 points under the high quota~- tions of early May. After liquidation was absorbed a brisk rally eventuated, under the influence of the rapid raising of the pool bids, and late in July the price was “shoved up through the old top” into new high territory. Pool Members Refuse Profits. With accumulation completed and his preparatory work done, the pool man- i ager was now ready to “stage the real fireworks.” Wall Street was full of rumors affecting the issue—rumors of possible mergers, of possible stock divi- dends, of possible increases of cash dividends, of & possible “split-up” of the shares—all the tales which market let- ter writers and financial reporters gath- er from everywhere and nowhere in ex- planation of a spectacular advance. In- vestment trusts and other large buyers were informed of the possibilities in less romantic terms, and scale buying orders were placed to take advantage of technical reactions. A big following of margin - speculators and floor traders was created ang daily activity in' the shares was maintained at a high level. In sum, everything was set for a fur- ther extended advance, to be followed by liquidation of the pool at a mag- nificent profit. The first part of the program went through without a hitch. Early in August the price of the stock was run up another 35 points. With the mar- ket taking all offerings, and “begging for more,” the time had arrived for pool distribution to get under way. Then a conference of pool members was called. Quotations were now 50 points above the average price at which the pool had acquired its holdings." If the rich members of the syndicate sold they must pay large income taxes, They knew the future possibilities of the issue and saw no reason why they should not hold it. The final decision was that only enough shares should be sold to pay off bank loans on the pool stock. At the price to which the advance had been carried only about 25 per cent of the pool holdings had to be liquidated to cover the loans. An agreement was made with the pool manager which permitted him to make about one-half the total profit he would have collected had the deal been com- pleted as originally planned. Being himself a very wealthy man, with an income subject to large surtaxes, the operator in turn decided to sell only enough shares to free his cash invest- ment, retaining his profits in stock. The pool closed with all profits still held in “paper.” Mystery Stocks Advance Easiest. It is an axiom among Wall Street men that the easiest stocks to handle under favorable market conditions are the so-called “mystery stocks"—issues like the ome in which this $40.000,000 pool operated, the stocks of corpora- tions with undoubted large potential- itles of future increases in earnings, lacking upon which a sound judgraent of probabilities might be based. ‘When the business of a corporation is expand- ing at a rapid rate, when it is absorb- ing other companies in a series of merg- ars, and branching out continuously into new flelds of activity, who can say ex- actly what the stock may be worth in one year or in five years? In such cases the imagination of stock buyers is freed of the usual restrictions of real- istic analysis; the only practical limit to price advances is the desire of wary 5M;uilwrs to turn paper profits into cash. It is perhaps, a fortunate thing for the general financial situation that not all speculators, not even all the aristo- | cratic minority of“speculators who play | the “blue chip stocks,” are so rich they cannot afford to take profits. Sooner or later some of us need cAsh and must sell, and every advance must some day thermlnue in ‘a “corrective reaction.” (Copyright, 1029, by Current News Fentures, c). NEW MAGAZINE STARTS IN FIFTH DISTRICT Announcement of a new banking and financial Jrublleazbn to be published in Richmond covering the fifth Federal Reserve district was made today from the Washington offices of Willlam V. Branch, editor and publisher of the United ' States Banker, & national financial and economic magazine. The new journal will be called the Fifth District Banker and its initial appear- ance is scheduled for November 15, and regularly on the first of each month thereafter, Mr. Branch has maintained offices in Richmond for several months in making preparations for the new magazine, and states that it is being accorded a gratifying welcome in the banking and financial fields. Nearly $275,000 was raised in India for the Thanksgiving for the King's re- covery fund which was started soon after the recovery of King George of England. STEIN BROS. & BOYCE Established 1853 New York Stock Exchange orders executed for cash or accounts carried on conservative margin. _ WOODWARD BLDG., WASHINGTON, D. C. Telephone: National 3473 Members NEW YORK, Baltimore and Washington Stock Exchanges Associate Members New York Curb Exchange { advantage. 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