Evening Star Newspaper, November 13, 1929, Page 12

i New, Fast Service FLORIDA . From WASHINGTON BAVANA SPECIAL. Lv.12:10 a.m. achedule quickened 3% PALMETTO LTD. Augusta. Thomasville, Florid; MAGNOLIA LTD Lv. 10:85 a.m. 6 other fast daily trains during season via the Douable-Track Sea-Level Route Atlantic Coast Line The Standard Railroad of the South Tickets, reservations, information from GEORGE P. JAMES, G. P. A. 1418 H" St., N.W., Washington D. C. Ccnnluw Heat e e ENTURY 0L BURNER J. L ASTON. MG! R 1319 F St N.W. Distriet 7408 'Y swiftend to COLD 3 ways to be sure Here's amazing help. In the next few minutes get Hill's from any druggist. Take it and relieve that cold in one- third the usual time. Without upset- ting you or your 's stop col ays at once Fever...2: Opens Bowels, no grip- ing ...3: Tones System, Restores Energy. For all folks little and big. Ask any druggist for the red box of HILL'S CASCARA-QUININE FOX'TROT «-’hé'fi” the fiddle of BEN.BERNIE SATISFIED The last Fox Trot the Maestro made for Brunswick before he sailed to tickle the feet of dear old London. THERE'S TOO MANY EYES Ben’s a nasty Nero, the way he’s fiddled fire into this flaming Fox Trot. No. 4507 CHESTER GAYLORD “The Whispering Serenader” sings SATISFIED Accompanied by saxaphone, clarinet and piano, Chester does his best to out-maestro Mr. Bernie. LOVE ME Checks | ON INCREASE HERE Approach of Thanksgiving Season Marked by Large Shipments of Birds. ‘Turkey receipts continue to incre: as the Thanksgiving holiday season ap- alive. Few dressed turkeys have been received from nearby Virginia the past few days, however, their quality, ac- cording to reports, being first-class. The dressed stock recelved this week is intended for current consumption and not to be held for the holiday trade. Prices continue much lower than during several years past, dealers re- rt, and there continues to be every dication that high prices of recent years will not prevail this season. Local stores already are taking orders for turkeys for the approaching holiday | season. Prices are not yet quoted, but it is predicted that they will be cheaper than last season’s prices. Chicken Shipments. Heavy shipments of chickens were re- ported this morning, coops of poultry being piled high about the houses of poultry firms, and prices were reported easy. Quantities of keats and ducks also were received and dealers also had supplies of rabbits that were not much in demand, probably because of the warm weather. i While poultry dealers promise plenti- | ful supplies of turkeys for the ap- | proaching holiday season, commission merchants will have plentiful supplies of the trimmings. Cranberries, celery 1 and several varieties of green vegetables | as a dinner accompaniment, and Italian | | chestnuts for the turkey dressing we: | mentioned as the chief foods to a company the dinner. | Dealers reported receipt of the first | carload of California celery this morn- 'ing, New York celery having been plentiful the past month or more. The California product, full crates, sold around $6.50 this morning, 2-3 crates | of the big New York celery selling at $3 and $3.25, hearts selling as low as $2.50. Early crop of Cape Cod cranberries were offered today at $3.75 a box, the late variety selling at $4.50. Italian chestnuts were quoted at 14 and 15 | cents a pound, domestic chestnuts be- |ing so scarce that prices were not| quoted. | " First shipment of cabbage from the Charleston, S. C., section appeared in the local market this morning. The cabbage came in splendid condition and sold at $3.50 for crates of 100 pounds. Dealers also reported receipt of the first carload of eggplants from Florida, the vegetable attracting much atention of ::yers and selling at $4.50 and $5 a X Tomato receipts from California were not so heavy this morning. They were of splendid quality, however, and were in fair demand at $3 and $3 of 30 pounds. Receipts of grapes from the West are gradually decreasing and { higher prices rule. Plentiful supplies of apples, orange: grapefruit, honeydews and pears co: tinue to interest the trade. Twenty- pound_boxes of rhubarb were received from California shippers today and of- fered at $1.25 and $1.50. It was nct much in demand. ‘Wholesalers reported a generally gulet condition of the market this mcrnin, Receipts of most commodities were fair- ly heavy, but buyers were not out in great numbezs. It was s ted that weather conditions probably affected the trading. Prices of most commodi- ties were the same as prices quoted yesterda! Today's Wholesale Prices—Jobbers’ Prices Slightly Higher. Butter—One-pound 44a45; tub, 43a44; store packed, 3 Hmner{, 55; fresh selected, 48a 50; current receipts, 45. Poultry, alive—Turkeys, young hens and toms, 35a37; old hens, 35; old toms, 35; Spring chickens, large, 25a28; g;‘:?. 26a27; broil 30a32 me- 3 eal, 24a28; pork loins, 23a26; fresh #%a25; fresh shoulders, 20a2: smoked hams, 25a26; oked 18a20; bacon, 28; lard, in bulk, 14; in packages, 15. Live stock—Calves, 14%;al5; lambs, 1215a13. Fruit and Vegetable Review. ‘The daily market report on fruits and vegetables (compliled by the Market News Service Bureau of Agricultural Economics) says (sales to jobbers except where otherwise noted) : Appln—-supellu moderate; demand moderate, market steady. : ginia, U. 8. No, 1, 2% to 2}, inches, Grimes, fair quality, 3.50a4.00; unclassi- fled, Black Twigs, and No. 2, 2'> inches up, Black Twigs, 3.50a4.00, B\llf\el bas- kets: Virginia, Staymans, U. 8. No. 1 2% inches up, 1.75a2.00, mostly 2.00 U. 8. No. 1, 2% inches up, 2.25; 3 inches up, 2. U. 8. No. 1, 2% inches up, Grimes, 1.50; U. 8. No. 1, 2! inches up, Staymans, fine quality, 2.50; U. 8. No. 1, 2% inches up, deliclous, 2.75; un. classified delicious, ordinary quality, 214 inches up, 1.25; 2Y, inches up, 1.50: 2% inches up, 1.75; U. 8. No. 1, Romes, 3% inches uF. fine quality, high color, 3.00; Pennsylvania, Yorks, unclassified, 2% inches up, 1.25; 2% inches up, 1.00; U. 8. No, 1, 24 inches up, Grimes, 1.25. Boxes: Washington, delicious, medium to large size, extra fancy, 3.75; fancy, 3.50; Jonathans, medium to large sizes, extra fancy, 3. .25, Cabba upplies moderate; demand light, market steady. New York, 100- und sacks, Danish type, mostly 1.65 uth Carolina, barrel crates, proxi mately 100 ?0 inds net, poin! type, 2.75a2.85; 1l,-bughel hampers, 1.50a 1.75. Celery—Supplies light; demand mod- erate, market firm; New York, two-third crates, 3.25a3.50; few small size, 2.75; California, crates, few sales direct to re- tailers, 6.50. Lettuce—Supplies moderate; demand moderate, market firm; California, crates, Iceburg type, 4-5 dozen, 3.50; fe! ordinary quality, slimy, low as 2.00. Onions—Supplies i demand light, market steady; New York, 100-pound sacks, yellows, United tSates No. 1, me- dium ' to large size, 2.00a2.15; Indiana, 100-pound sacks, yellows, United tSates No. 1, medium size, 1.90a2.00; Colorado, 100-pound sacks, Valencia type, United States No. 1, large size, 2.40a2.50; 50- TURKEY RECEIPTS | proaches, most of the turkeys coming | THE EVENING STAR. WASHI WALL STREET POOLS NGTON, BY A POOL MANAGER, AS TOLD TO JAMES ABELLE. CHAPTER 1V, Support Pools and Accumulation. (Some of the most comservative corporations, which would shudder at the mere mention of the word “pool” really achieve the most suc- cessful operations of this sort. How one organization accomplished its purpose and rewarded a l man- ager with a $10,000,000 profit is told in this issue.) It very often happens that the con- trolling interests of a large corporation have very little understanding of the market possibilities of the stock. They know the corporation is increasing its business and profits and that.the shares will pay larger dividends as the years pass; they know that the stock is a val- uable investment holding and they are content to retain it for themselves. Such men are not interested in creating a wider market for the corporation’s securities, especially if they are very wealthy, with powerful connections, and therefore able to finance new capital re- quirements without appeal to the pub- lic. So long as the shares enjoy a steady market at a price which reflects the investment value on a basis of the cur- rent dividend return men of this con- servative stamp refuse to trouble about the stock market. The reports of these corporations make very dry reading for the general public. There is no “window dressing,” the term which Wall Street uses to de- scribe the modern practice of display- ing facts to the best advantage. No ex- pensive publicity men are employed to dramatize underlying values and future potentialities of profit to stockholders. It is considered sufficient to outline ac- tivities in the dullest of formal lan- guage, supplemented only by the fig- ures snupplied by accountants. The cor- poration may apply all the subtle prin- ciples of advertising and sales psychol- ogy in selling its product to customers, while in its dealings with stockholders these principles are wholly ignored. Members Without Knowing It. For all that, however, nine times out of ten the important stockholders of these corporations do actually engage in pool operations, without knowing it. They may shudder at the word “pcol, and vehemently deny any interest in the “gyrations of the stock market.” Yet nearly always these conservative gentle- men have an arrangement with some firm of bankers, as conservative as themselves, whereby the stock will be “picked up” in times of f.nancial stress. ‘Th: bankers accept all offerings when- ever the price declines below the figure at which the “insiders” value the shares. ‘This operation is known in the Street as “cleaning out the market.” The bankers then redistribute the stock to the shrewd investors who know its value. When financial conditions improve and stock again advance, these investors lis) of excess holdings at a tidy profit, if they happen to need the funds so employed for other purposes. When the amount of shares to be resold in this way is large, the stock is returned to the banker, who “feeds it out” at a rate to avold depressing the prevailing market price. There is, of course, no pool agree- ment; and no harm is done to any one by the refusal of the parties concerned to apply the name “support pool” to the arrangements under which these trans- " Brady is reported to have covered this ground on one occa- ion with a famous remark: “Gentle- men, let us not speak in unpleasant terms! I do not ask you to join a pool. I ask you to pool your interests.” But however the operations may be described by ultra-conservative finan- clers, every one agrees that the protec- tion of sound investment stocks in sea- sons of financial bad weather is an al together meritorious undertaking. And the existence of the friendly arrange- ments of “pooled interests” to prevent the collapse of stock prices explains the aying frequently heard among the ore realistic members of the Wall Street communit; ‘There is a support pool in every stock—unless the stock is worthless.” Support Stock Returns to Market. It is also true, nine times out of ten, , | that stock bought to support the market is purchased with borrowed money, or with funds which cannot remain per- manently invested in this way. s gives the explanation of another saying often heard in Wall Street that “sup- E‘m stock always returns to the mar- et.” After the period of trouble has passed, and prices are in rising, the shares which were bought to halt the decline are quietly redistributed. It is this redistribution which usually causes the “esecondary decline” that so often follows the first recovery of prices after a violent break of the stock market. The situation is entirely different when the purchase of stock in market reactions represents genuine accumu- lation. Often the investment holdings of the “controlling interests” of a cor- poration are actually only a small pro- portion of the total outstanding shares. Voting control is retained through the confidence of other stockholders; and when the issue is established on an in- vestment basis, there is no reason for the “insiders” to hold more shares than can be conveniently carried as an income investment. But conditions change. Perhaps the country enters a perfod of business expansion, opening up oppor- tunities for the corporation which ren- der it likely that the stock will rapidly increase in value. Perhaps a merger is to be effected, or some huge program of enlargement must be financed, making it advisable for the management to se- cure full voting control of the stock. It becomes necessary to accummulate shares for this purpose in the market. I know of one operation of this char- acter which extended over a period of 10 months. Over one million shares of stock were accumulated—without ad- vancing the gnce more than 20 points. In cases of this kind it is customary to secure the services of an experienced | market operator who assumes the re- sponsibility for making the accumula- tion at a minimum cost. It is a diffi- cult job, requiring a man of the utmost patience and diplomacy who at the same time is master of all the arts of bold market strategy. The operator who managed the million-share pool I am s;ea\ung of retired when the pool closed with a personal fortune exceed- ing 10 million dollars, all but a few hundred thousand dollars of it earned in the one deal. Rigid Secrecy Essential Factor. At the time he was originally re- quested to take charge of the operation he was very doubtful of the possibility of success, He made his employment conditional upon the maintenance of absolute secrecy as to the proposed ex- | pansion program of the corporation. Only eight men were in possession of all the facts, and it was agreed that no others should be informed of develop- ments, Not even the wives or confi- dential secretaries of the “insiders” were to be enlightened. Later it became necessary circle of “insiders,” but the deal was carried through the accumulation period with the financial world wholly in the dark concerning the actual situation. During the ten months this buying was in progress more than 100 brokers were employed, at one time and an- other, in order to conceal the source of the orders. Needless to say, no bullish propaganda detailing the affairs of the corporation was circulated. Selling to enlarge somewhat the D. C., WEDNESDAY, orders in large amounts went through now and again in ways to indicate liquidation of inside interests. Ad- vances were slow and labored; declines were sharp and frequent. Many days the ‘toulh.m tfg; 'hlcl:’nu ‘mana- ger in cl [3 operation was re- sponsible r?:chzd a volume of 10, 15, even 20 times his net accumulation of shares for the day. These tactics were so effective in convincing market fol- lowers of the weakness of the stock that on several occasions bear s were organized to sell the shares short. Mysteriously enough, the shorts failed to collect the large profits expected. Chastened Bear “Sees Light.” One of the most amusing incidents of the operation, however, was furnished by one of these bears. After losing a quarter of a million dollars in a series of attempts to break the market for the stock, this man suddenly “saw the light.” He rev-rsed his position and made heavy commitments on the long side. The chastened bear was the only outsider who made a “big killing” in the first terrific advance of the stock which followed after the million shares nec- essary to control had been accumu- lated by the pool. ‘The pool manager who achieved this feat of accumulation, one of the most remarkable exploits in the history of Wall Street, continued to direct the market operations in the stock for the succeeding two years. When he retired, as I sald above, he had amassed a fortune of $10,000,000 from this single undertaking. During the period he was in charge the corporation increased its capital 600 per cent, the new issues be- ing floated under his direction. The earnings of the corporation increased more than 1000 per cent. Investors who acquired the shares at the accumu- lation prices witnessed a 400 per cent increase in_the market value of their holdings. It is an interesting com- mentary on human nature that the pool manager himself never held so much as one share of the stock for his own personal investment account. (Copyriaht, 1029, by Current News Peaturer ) nc.) UTILITY EARNINGS UP. West Virginia Water Service Co., & subsidiary of Federal Water Service Cor- poration, reports gross revenues of $804,292 for the year ended September 30, 1929, as compared with $770,326 for the preceding 12 months. Operating ex- penses, maintenance and taxes, other than Federal income tax, totaled $427,- 692 as against $433.091. Gross income amounted to $376,600, which compares with $337,235 for the year ended Sep- tember 30, 1928. BANKERS' ACCEPTANCES. “ The volume of bankers’ acceptances outstanding increased $268.467,578 dur- ing October, to $1,540,738,123, new high record and comparing with $1,122,746,- 880 a year ago. suburbs 1001 15th St. N. W. SAFE ... PROFITABLL .+ CONVENIENT 6% First Mortgage Notes —secured on cmni’vifiwel’y appraised, improved properties in the District of Columbia and adjacent Maryland - + » Permit us to offer cur facilities for the plaging of your ‘~estment funds. BSTABLISHED 13589 H. L. Rust Company National 8100 NOVEMBER 13. The ROLLS is a roomy, easy- because it gives your feet 1929. MARKET IS BESET BY BEARISH FACTORS Lack of Support Goes Hand in Hand With Excessive Liquidation. Special Dispatch to The Star. | NEW YORK, November 13.—The sin- ister feature of the recent stock mar- ket, emphasized in yesterday's numerous new low prices on renewed offerings of large individual blocks, has been its ap- parent inability to rally from the heav- | jest shrinkage in values on record. | This clearly betrays two unfavorable conditions—namely, steady liquidation for the account of those who have been seriously affected by the price collapse and the limited buying power of zhe( public _and corporation interests that are depended upon at such times to give needed support. It also represents the clearing up of & great deal of wreckage that developed in the October break, the overthrow of weakly margined accounts and a bolder campaign by the bear element, encour- aged by the feeble rallies and the knowledge of stocks that must be sold and are still overhanging the market. In all of the minor declines of the| past year it was always possible to buy stocks on the breaks and quickly real- ize a considerable trading profit. This game was played successfully not only by the public, but by the trading cor- porations. Both expected to duplicate it on an even larger scale from the pur- chases they made in the various breaks, such as those on October 24 and Oc- tober 20 and on one or two occasions this month. Latterly, however, condi- tions had been against them. Instead of realizing gains on stocks bought when they were conspicuously weak, they have experienced substantial losses. Naturally, they have abandoned a pro- gram that otherwise would have lent its aid in support of a declining price list. In point of shrinkage, the present decline far outruns any other in Wall Street history. One economist places the depreciation in. market values as| high as $45,000,000,000. This would be the equivalent of 50 per cent of the annual national income. It is probably too high. It does not represent the ac- S:ll,dutrl;ctlon of w:l thi but !‘lfl’fllfl' e loss of paper or imaginary profits of those who had been carrying stocks over a period of from 1 to 3 years. Re- ducing it to its probable maximum, it still represents a figure so large that it cannot help but affect business and postpone developments that are always closely allied with the fortunes of the great financial centers of the country. At another point the market has also shown a striking difference from those that have moved downward in other years. Probably the nearest parallel to the present unsettled situation is that less than two months &l- x.l.zo nnr‘m pproximaf great s t; decline 1nyml values Equitable Co-operative Bldg. Ass'n Organized 1879 JOHN JOY EDSON, Assets . President veveees..95,662,549.55 50th YEAR COMPLETED WALTER 8. PRATT, Jr., Secretary Surplus & Profits.. $1,705,130.78 Subscription for the 98th Issue of Stock Being Received i $2.50 PER SHARE SAVE AS YOU EARN HE Equitable’s plan of sys- tematic savings encourages thrift in a manner that if con- sistently followed will even- tually lead to financial inde- pendence. Start now while you have a steady income. Come in and let us explain about our systematic plan. 915 F St. N.W. Secured on Washington, D. C, Real Estate: Interest 6% Semi-Annually Conservative Appraisal Certificate of Title Fire Insurance and careful attention to details Wm. H. Saunders Co. Est. 1887 1433 K St. N.W. District 1015 These Four Fast Afternoon Flyers To The West Prove Most Convenient for Washington Travelers TO CHICAGO Liberty Limited 3.25 P. M. Lv. Washington Ar. Chicago .. 325 P.M. L 900AM. The Arrow 4.18 PP. M. Lv. Washington Ar. Chicago. . 418 P M. 11.00A.M. The Liberty Limited is one of the most USY men appreciate this choice of fast trains—made possible by the recent inauguration of The Golden Arrow to Chicago—and the quickening of the Spirit of St. Louis to St. Louis. It is now possible for you to select a train to fit your business plans. For the two fast Pennsylvania trains to Chicago every afternoon leave at 3.25 and 4.18 —and the two to St. Louis leave at 2.40 and 6.30...And there are convenient morning and evening trains as well. Leader of the Pennsylvania’s fleet to Chicago, the Liberty Limited, continues to offer Washington travelers the utmost in speed and luxury. Allowing almost the full business day in Wash- ington, the Liberty Limited puts you in' Chicago next morning, bright and early. TO luxurious trains in America . . . Barber, bath, valet, ladies’ maid, train secre- tary, terminal telephone at Washing- ton . ...both an obeervation car and aclub car.... Yet no extra fare. To St. Louis, the Spirit of St. Louis now equals in speed and luxury the famous service offered by The Ameri- can. These two trains—leaving Wash- ington at 2.40 P.M. and 6.30 P.M. respectively—arrive in St. Louis next ST. LOUIS Spirit of 1?\\ St. Louis 2.40 P. M. Lv. Washington. ... 2.40 P.M. Ar. St. Louls........ 1.20P.M. day just after luncheon at 1.20 P. and just before dinner at 5.10 P.M. Both are luxuriously equipped— worthy in every way to be leaders of the largest fleet of trains in America. To ‘Detroit—The Red Arrow—fast, luxurious — leads four convenient Pennsylvania trains daily. The Red Arrow leaves Wi n at 3.55 P.M., arrives in Detroit at 8.45 A.M. S’help us, you will, if you 1, very everlendyour earstoChester when he sings this nuniber from the French success “Deja”. The piano and guitar accompaniment is scrumptious. No. 4531 und sacks, Unitel States No, large size, 1.85a2.00. Potatoes— Supplies liveral; demand slow, market about steady; van! 100-pound sacks, round whites, United States No. 1, fair quality, 4.008 4.25; Maine, 120-pound sacks Gi Mountains, United States . 3.85; New York, 150-pound sacks, whites, United States No. 1, 4.2! Sweet, pof mand slow; market stead: ia, cloth-top barrels, No. 1, yellows, E. S. Maryland, ~bushel [ yellows, No. 1, best, 1.15a1.25; fair quality, 1.00; North Carolina, cloth- top barrels, yellows, No. 1, 2.50, String beans—Supplies light; demand moderate, market steady; good inquiry for good stock; Norfolk section, Va., bushel hampers, green, fair quality, 2.50a3. poorer low as 1.00; South Carolina, bushel hampers, green, best, 3.00a3.50; ordinary quality, 1.50a2.50. Squash—Supplies very light; demand light, market steady; Florida, bushel hampers, medium size, wrapped, 3.00: ?eo%per crates, medium size, wrapped, American ones. 14th at G By ] $2.50 to $5.50 Tth & K 3212 14th e e IPENNSYLVANIA RAILROAR very light; ight, marker, stead: So’l.l?h going style that most men like. . . . A shoe you'll want to call your own $ after your first pair such a comfortable, con- tented feeling. . . . Popular in the new shades of brown, also in black. Toppy “Spats” Add real distinction to a man’s appearance—and take the chill off his ankles. Imported ones only from “Church,” North- ampton, England — and best ELECTRICAL RECORDS “Man’s Shop” 0}) ALAN B. SMITH, General Passenger Agent, 613—14th St., N. W., Washington, D. C. Telephone National %140 Wholesale Distributors Cohen & Hughes Co. 410 W. Lombard St. Baltimore, Md. Carries more passengers, hauls more freight than any other railroad in America bushel hampers, 5.50a6.00.