Evening Star Newspaper, November 20, 1929, Page 15

FINANCIAL - MARGIN PURCHASES OF STOCKS DEFINED Puts and Calls, Spreads and Straddles and Short Sell- ing Explained. BY JOHN F. SINCLAIR, Bpecial Dispatch to The Star. NEW YORK, November 20.—‘Please explain what is meant by buylng stocks | on margin and make it simple enough so that even I can understand,” asks a California reader. I have received recently a number of similar letters from various parts of the country and take this opportunity to Teply to all of them, " _ Let us suppose that Mr. Brown has $5,000 that he wants to put in the stock market. He has two choices: (1) To buy $5,000 worth of stock outright and ~ put it away, or, (2) to buy more than $5,000 worth and borrow the difference. °* He decides on plan No. 2. *_ The New York banks have announced that they will losn up to 75 per cent cf the present prices of good stocks. Mr. Brown, on this basis, is able to buy four times as much stock as he’could by buying outright. So he puts in his own $5,000 and borrows from the bank the rest--$15,000. The banker takes Mr. Brown's note for $15000 and puts the $20,000 of stock back of the note as collateral. . Say the stock goes down in value so that the total instead of being worth $20,000 falls to $14.000. The banker immediately calls for more collateral. But suppose Mr. Brown has no more cash or collateral to give. Then the banker sells him out and Mr. Brown loses his $5,000. If the banker is not quick enough and realizes . only $14,000 for the collateral instead of $15,000, the amount borrowed, then he, the banker, is faced with a loss, too. ‘That is margin operation. Now let us take the same case and have Mr. Brown do business with his itock broker. ‘The broker loans Mr. Brown the $15,000 needed to complete the $20,000 stock purchase, but does not take Mr. Brown's note. He merely keeps the stock with authority from Mr. Brown *s to gell it whenever in the judgment of the broker the margin is impaired. S 'The wise broker never lets the stock sink to the absolute margin. He usually demands more collateral or cash before ~ it quite reaches that zero point, namely. + $15,000 and if he fails to get more, he sells out the account. < Now where does the broker get the . money: In two ways (1) he can take ~* the $20,000 worth of stock to his bank and borrow $15,000 on it in the same : way that Mr. Brown could with a banker! or (2) the broker can take it . to the loaning post in the stock ex- . change, loan the stock and receive a * check for the entire $20,000. ‘Where does the broker make his profit? In the first instance, cited above, he makes the commission on the shares of stock sold. This varies with the price of the stock, but one can figure it about $20 per 100 shares. In the second place—and this is a little more delicate—the broker often makes a profit on the difference ‘n the rate of interest which he charges the cus- * tomer and the rate at which he borrows | from his bank. In the second instance, the broker borrows all he loaned so that he has | no cash involved in the transaction. ‘But he has just as much profit in trans- action No. 2 as in No. 1. Follow that just a little further and here we find the place where the “short sales” take place. The broker has loaned Mr. Brown’s stock and borrowed the entire amount. Every “short sale” requires that the broker borrow the stock from somebody. agreeing to pay back to the borrower on demand. Ina bull market, it is ore difficult to “short sell” with safety than in a bear market. “Short selling” though is never safe. “Puts and calls; spreads and strad- dles—please tell us. something about 2, a Connecticut student asks. These terms are not so well known in the United States, but they are very well known in England and have been in use in Europe for almost 200 years by bankers, brokers and traders in gen- -eral. Russell Sage was the first American stock operator who first introduced them into the United States. They are really stock options and are primarily insur- ance on stock market operations. A call is a negotiable contract en- titling the holder to “call or purchase” specified number of shares of stock at a fixed price within a time limit, ! usually 30 days. A put is directly op- posite to a call, giving the holder 1 privilege to “put or scll” the stock specified in the same way. A spread is a double option—a com- bination of both put and call. A straddle consists of a spread written at the market. Here's the way a call reads: November 20, 1929. For value received, the bearer may call on me on one day’s notice, except the last day, when notice is not required, 100 shares of the common stock of the United States Steel Corporation, at i one hundred sixty-six and one-half dollars per share, any time in thirty day from date. All dividends for which transfer books close during said time, g0 with the stock. Expires December 20, 1929, 2:45 p.m. And this is the way a put reads: November 20, 1929. For value received, the bearer may deliver me on one day’s notice, except last day, when notice is not required, one hundred shares of the common stock of the United States Steel ~Prev.1920— High. Low. 3114 4814 22% Stock and Dividend Rate. 7 Aeronautical Indust, 141 Aero Underwriters. . 5% Aero Sup Mfg. B. 15 Agfa Ansco 65% Agfa Ansco pf. 3 Alr Investors v 40 Alrstocks, Inc v t 110 Alabama Gt Sou ¢ 109% Alabama Gt S pf 37 5% Allegheny Gas Corp. 3% Allled Aviation.. 24% 10% Allied Mills, Inc.... 23 Allled Pow & Lt. AllP&L1st pf 6, 1 Allison Drug St A.. 1% Allison Drug St B 5391 146 Aluminum Co of Am. 114 83 24 899 139 18 26 642 20 108% 103 225 23 153% 8474 60% 10 174 427% % 3 43% 885 60 50% 46% Bancomit Corp new.. 45% 124 2 44 103% 21% % 46% 4% Dayton Air & E: 241 120 Alu Co of Am pf(6).. 5% Am Brit & Cont..... 5 Am Br B El £d shs. . 98 AmCigarCo (8).... 29% Am Cit P&L A (a3).. Am C P&L B (b10%) 16 Am Colortype(33)... 18 Am Com P A (130c). 22 Am Com P B ($30c) 103 AmDIStT,NJ cv p! % 15 Am Equitles........ 254 Am For Power war.. 5% Am Invest IncB.... Am Investors (war). 190 Am Lt & Trac (10)., 87 Am Manufactur Co., % Am Maracafbo...... 511 Am Salamand (335). 10% Am Solvents Chem. . 15 Am Superpower..... 85 Am Super 1st pf (6). 82 Am Superpow pf (6) 8 Anchor Post F (12).. 11 Anglo-An v cod 35c.. 13% Anglo-Am v cod 35c.. 15 Anglo Chil Nitrate. . 15% Arcturus Rad Tub .09 Ariz Globe Copper. 3% Arkansas Nat Ga: 616 Arkansas Nat Gas A. Ark N G em pf (60c) Asso-Dyeing & Ptg. sso-Ilec Ind Ltd 851 ASS0 GRE A (12.40 312 Asso G&E A deb rts. 804 Asso Rayon pf (6)... 7% Auto Voting Mach. .. 16% Aut V Mcv prpt (2). 20% Aviation Corp of Am 12 Aviation Credit..... 80 Axton-F Tob A 3.20.. 117% Bab & Wilcox (7). Bala & Katzctf (3).. 144 Bell Tel of Can (8).. Bellanca Afrcraft. Bickford, Inc Blaw-Knox C: 10 Bliss Co (B W) (1).. 1% Blue Ridge Corp. % Blue R Corp cv pi Blumenthal (S). 10 BrillCorp A (1%). 14 Brillo Mfx (120) Brillo Mfg A (2) 26 Brit Am Tob B 11.20, 26% Brit Am To regt1.20. 4 BrCelanese Ltd rets 22 Buf N&E P pf (1.60) 31 Burco, Inc (war).... 88 Burco, Incconv pf... 8% Burma rcts (31%¢). 4% Bwana M Kubwa.... 4 CableRT vte... 3 Cab&WireLtdA rets. 1% Cab&WireLtdB rcts. 8% Cab&WireLtdpf rcts % CAMCoctfs,. . 3 Can Marconl.... 1 Carib Syndicate..... 48 Caterpillar Trac (3). 20 Celanese Corp £0 Celan Cor 1st pf (7). THE EVENING STAR, WASHINGTON, D. C., WEDNESDAY, 8% 1% 13% 21% 1 8y 17% 6 b1s 144 12 6 1 b52s 119 2 64% 64% Sales— Add 00. Open. High. Lo 643 119% 118% 119% 6414 2 484 d48% 481 48% 50s 150 150 7% T 98 Cen&SWUtilprin 7. 60s 6% Cent Atlantic States. 20 Cent PSv A (21.75). 12 Cen States 1 (340c). 4% Centrifug Pipe (60¢) 6 Chain Stores Dev. ... 113% Chain Stors Stk(b6’ 87'% Ches & Ohio (new) % Chi & NW bona rt: 97% Childs Co pf (7). 20 Citles Service (130c) 144 B4 Citles Serv pf (6)... 15 City Mch & T (1.60). 10 Clev Tractor.... 31 Club Alum Uten. 40 Colgate Palm P (2).. 4 ColonOll...... 25% Colts Pat Fire A (2), Comwlth & Sou war. 4 210% Comwth Edison (8). 93% Comwlith Pow pf (6) 14% CommuntiyWatServ. % Comstock Tunnel. ... 4 Consolidated Copper 71 Con Gas Balt (3).... 20% Con Gas Ut A (2.20). 12% Con Dairy Prod (12). 2% Cons Instrument. 10 Cons Laundries 11 Con Retall St 21 Consol Royal (60c) 5% Consol Theaters. 10 Continental Oil..... 327% Cooper Bessemer(2). 10 Cori Corp 1214 Corroon & Revnol; 69 Cor & Rey pf A (6) 42 C . 12 Courtaul Ltd (70¢).. 5% Creole Petroleum. .. 3 Cresson Cons (.08) 1734 Crocker Wheeler(n). 234 Curtiss Wright war. 21 Cusl Mex Mining 65 Darby Pet (1). Deere & Co (6)..... 5! De Forest Radlo. 2 Derby Oil & Refin 5% Detroit Atrcraft Cor. 9 Dix Gas & Utflities. . 147% Doehler Die Casting. ix Dolores Esperanza 16% Douglas Afrcraft. ... 50 Dow Chemical (2)... 62 Draper Corp (4)... 33 Dresser(SR) MA(3). 84 Driver Harris(new). 4 Dubeller Cond&Rad. Duke Powder (5)... 2 3% Durant Motors. 810 2 5 20 2 7 2 8814 24 20 4y 57% T% 25% 4% 150 % 18% 3214 2 2 5 105 105 0 30% 30 3% 239% 230 9% 97% 15% 1 2% 8% 5% 1 % 5% 3 258 87. 15 8l 5% 7 9%, 50s 138 8 6% 6% 2% 2% 25% 25 11% 14 4 2% 2% 8% 5% 5% 5% 89814 371 890% T4 b4 T 9% 9% 9K 144% 138 144% 6% 2% 160 % 4 239% 2% 2% 8% T % 7 16 23 Y 16% 647% 62V 37% 37 6% 2% Stock and Dividend Rate. 1d Seal El n.. Golden Center. Goldfield Consol Goldm Sach TC ( Goth Knitbac Mach Graymur Corp. Gram’ph'ne ret: GrA&PTnv (5).. 1208 GrA&PTeapf (7). 10s 1 Gt LakesSteel pt pf.. 1 Groe Stors Prod vtc.. Ground Gripr(t1%). Ground Grip pf (3).. Guardn Fire Assn(2) Guardian Invest.... Guenther La . Gulf Ofl of Pa (1%). Hall Lamp (12). H'd Page p pf (19¢).. Happiness Candy. ... Haygart Corp... Hazeltine Corp ( Helena Rubenstein Hires (CE) A (2). Hollinger Gold (60 Hormel(Geo) (1.50). - — NI R R D B BARNND R DR TN A O O RO M1 00510 <1 10 03 i 5210 19 e N 310 M OB Humble O11 (12).. Hydro El Serv (12).. Hygrade Food Prod. Illinois P L (20). Imp Chem (Ind Imp O1l Can n (50¢c). Imp Tob Can (30¢).. ImpTob GB&I(1.25). Indian Terr Illum. Ind Fin cfts (b10%). Insull Util. Inv.. Insull Ut In 2d pf 6 InsCoN A (12%) Insurance Sec (1.40 Insuranshar of Del Intercoast Trad Co. Intercontinent Pet n Int. Hold. & Inv. Co... Int Petroleum 37%c. Internat Products Int Superpower (11). Internatl Ut A(315). Internatl Ut B. .. Interstate Equities. Interst. Eq. ev-pf.(3) IrvAlr C (2) (1.50).. Iron CapCopper. Italian Superpow A. Itallan Superp war KanCity PSvtcApf 4. Kleinert Co (2% ) Knott Corp (2.40) . Kolster-Br (Am Sh). Lake Superifor Corp.. Lakey F & M (12.40). Lane Bryan tine (2). Lefcourt Real (1.60). Leh Coal & Nav (4). Lehman (The) Corp. Leonard Ofl . Lerner Stores Corp Ley (FT) &Co (3).. Libby McNeil & L. Lion Of] Refin (2)... Lily Tulip Cup Corp. Lone St G: (80¢). Long Island Lt (40¢) Long Isld Lt pf(7)..120s Loulsiana Lan & Ex. 16 Mac Marr Stores. ... Magdalena Syndicat. Marconi Int M 52 c. MWT Ltd b'r'rshéZc. Mar Midland Corp. Mason Valley. . Mavis Bottling. . Mayflower Assn..... Mercantile Stors(5) . Mer Chap & § 11.60) . Mer & Mf S A (1.50). Met & Min Ine (1.20. Mexjico-Ohlo O11 o - - @ » Midland United Midvale Co (3).. Mo-KanP L (L6%). Moody's pt pf $3.75.. Morrison Elec (1)... Moun & Gulf (. Mount Prod (1.60). Municipal Service... Nachman Spring (3) Nat Amer Co (2). Nat Aviation. Nat Bancservi o nd BN EENBOANNDH HA N L= DB Nat Pub Sv A (160). Nat Rub Mach (2)... Nat Screen Serv 1.60 Nat Sugar NJ (2)... Natl Trade Journal Nat Transit (113 ). Union Radio. elson(Herman)(2). New Brad Oil «50¢) . New Eng Pow pf (6) 3¢ New Jer Zinc n(t4).. 'ewmont Min (14). Newport Co (new). . N Y Auction (1%)... N Y & Hon Ros 123 N Y Invest (1.20)... - - o P TRES T T T Niagara Shars b1-40. Niles Bement Pond. Niplissing (30¢)..... Noma El Cor (1.60) Noranda Mines. .... North Am Aviation. NoAm Util 1st p£(6). North Cen Tex (60¢) North St Pow A (8). N W Engineer (2) Novadel Agene (2). RO GARD AINWLER o Outbd Mot A (1.80).. Pac Pub Serv (1.30). o B Param C Mfg (2.40). Param-F-L(n)w. i.. .. Parmelee Tran (1%) Penn Mex Fuel (1).. 2 Penn O Ed pr pf(7).. 30s Peo L& P A (a2.40) 9 Pennroad Corp 47 Petrolm Corp (1 26 Philip Morris Inc. . . 4 Philippe (L) A (1.60 220 15% 115% 60 60 11% Prev. 1920~ Stock and Low. Dividend Rate. 21% SoCal Edpf C (1%). 18% So Col Pow A (2). 5% Southern Corp. . So Pipe Line (1). Southland Roy (1).. S W Dairy Products. Southw Penn PL(1) . i Spanish & Gen Res. Stand Oil of Ind 123 Stand OIL Kan $21 StOll of Ky (1.60). St O11 of Ohlo (2%).. Stan Gas & El pf (7) Standard Motors. ... St Pow & Lt pf (7). Std Silver Lea Suarrett Corp. Starrett Corp pf(6) Steln Cosmetics Inc. Strombg-Car 11.12%. Stutz Motor Car..... Sun Inv.... 4 Sun Inv pf (3) Sunray Oil... Superheater (111) Swift & Co (8).. Syrac Wash M B (1). Taggart Corp. Tampa Electric (12). Teck Hughes (60c). . Thermold Co (2).... ‘Third Nat Inv (1) Thomp Prod A (+2). Tobacco & All Stks. . Todd Shipyard (4). . Transamer n (31.60). Tr-Lux D.L.P. S.(A) Tri-Cont Allied. .. .. Tri-Continental Cor. Tri-Cont Corp pf (6) Triplez Safety Glass Trunz Pork Stores. . Tub Art Sllk B (10). ‘Tung-Sol Lamp (2). & SaFremans o < e e R e T TS =T PP T - - N 8 & po e Unit I Ser pur war. 6'4 United Dry Docks. 15 United Gas Co.. GarEBeo ma ~mnmt 2 & Sales— Add 00. Open. High. Low. X 2. 23 NOVEMBER 20, ~Prev.1929—~ High. Low. 617 Close. 234 231 619 6% 2215 22% 1% 11% 14% 14% 49% 49% 1 1% 5314 3% 2314 2314 674 2214 1% 1414 23% 281 Unit L& 6% UnitedM 29 U S Rad Univers Vacuum Venezue Venezuel Watson Willlam: 5 52% 2% RIGE % Asso Gas % Trans Cor * D % | annual_paymen cash or stock. Stock and Dividend Rate. Utd Lt & Po pf (6) U S Shares Fin...... Unit Sh Mch (13%).. United Stores....... Unit Verde Ext (4) Unity Gold...... Util Power&Lt($1).. Utility & Ind. ....... Util & Ind pf (1%) Utllity Equities. ividend rates in dollars based on FINANCIAL. Sales— Add 00. Open. High. PA(60c).. 50 24% 11k Prod ctfs (2). Insur (3%). B 15 CURB SHARES FIRM AFTER EARLY GAIN Market Reacts After Open- ing Rally as Support Stocks Are Sold. BY JOHN A. CRONE. Special Dispatch to The Star. NEW YORK, November 20.—Stimu- lated by the rally that took place in the Oil (14%) % Vam Camp Packing.. Van Camp P pf(13%) Veeder Root (23)... 1a Mex Oil. . la Pet (29¢). Vick Fin Corp...... Waitt&BondB(1.40). 5% Walgreen Co........ Walgreen Co war 4 Walker (H) (1). (J W) Co. Wayne Pump White Sew M de rt: s R C (1.40 Wil-Low Cafeteria Wilson Jones (1214 Worth, Inc A.. 13 Zonite Prod (1.60) 21% HTS. Expire. & Eel...Dec. 16 Ed bid Deveveesndan. 4 8 & % & % final few minutes of Tuesday’s trading, stocks on the Curb today opened high- er. The advance was erased partially later, for it was used to get rid of stocks previously acquired for support and to establish income tax losses. Olls and utilities led the early rally. ‘The best gains were recorded and main- tained by seasoned issues in both groups. Some of the trading companies staged a further recovery as they declared initial dividends on their securities. Aviation shares showed further improvement, but their movements continued irregular. Only a few large blocks of leading issues appeared at the opening. They included 18,000 shares of Electric Bond & Share at 74%, up 1% Citles Service in a 10,000-share deal at 30, unchanged; Niagara Hudson Power with 4,000 shares at 143, unchanged, and Creole Petro- :f;‘:lln’ in a block of 5,300 shares at 7, One of the features of early dealings was the numerous blocks of Chicago & Northwestern rights appearing on the tape. These rights give the privilege of subscribing for the new 4!, per cent convertible bonds of that carrier. last quarterly or semi- t Ex-dividend. tPartly extra. iPlus extra in stock. a Payablein b Payable in stock. d Pasable in preferred stock. CHICAGO STOCK MARKET. Special Dispatch to The Star. CHICAGO, November 20.—Following is a report of today's sales, high, low and closing quotations, on the Chicago Stock Exchange: . Bundre: STOCKS: 1ien. Low. Close. 3T% 817 3T 1Acme Steel 2 02 2'Adams (JD) " Mfg Co 3t 31l Royalty ... 3" Mg Corp d . 1 Amer_Colortype 4Am Con P A.. 2 American Equiti 4'Am Radio & Telev Metal ... er Laun A. 35 Bendix _Aviation’ Ks Mig . Gent & § D 2 C::t & S W U pi Chicago Corp . Chicago Corp pf ! Ivestors pid %d 3 vestors b xd... 3 [ Sec St selier ins . ) 5 Hart Carter pfd. 12 Hormel G A & 6 Houd-Hershey A 6 Houd-Hershey B. 1; Tlls Brick. 181nd Pney Tool. % Ld Nunn cv pi 2 Lynch Glass Mg Go. 2 Manh Dearborn Mirs A... West Util 6 pfd 108 10: 9005 stock A 28% et o Q R 8 Music De Viy 10 Rallroad Shares Cor Sales in DOMESTIC BONDS. High, thousands. 9 Am Comw Pow 6s '49 100 17 Am Roll Mill 55 '48.. 66 Appalach Pow 53 '56. 15 Atk P&Lt €s '32... 198 & L 5s '59 ww 81 FOREIGN BONDS. thousands. 5Chils Cons_7s 60, . 42 Chile Mtg Bk 6s '3i 1E Pruss Ld Bk 65 Sales in 11 Ruhr G C Alos A R ctfs es—Actual sales. xd—Ex dividend. Xr—Ex-rights. ew. Www—With warrants. xw—Without warrants. Washington Ticker BY CLINTON COFFIN. Associated Press Financial Writer. Hasty national survey of the business situation facing the food canning in- dustry, undertaken since the stock mar- ket collapse of recent weeks, has dis- closed complete absence of cancellation of orders and considerable evidence of expanding demand. The contrast be- tween conditions disclosed today and those that were precipitated in 1921, after the previous great market break is both a matter of wonder and satis- faction to the people most concerned. “On the Pacific Coast, where the largest fruit and fish canning enter- prises are coming to the close of sea- sonal operations, we found buyers look- ing for opportunities to pick up stock,” explained F. E. Gorrell, secretary of the National Canners’ Association. *“I couldn't locate a single cancellation, and two or three of the larger concerns are showing week by week this month substantial percentage gains over the 1928 business during the same period. “Jim Dole. head of the greatest Hawai- ian pineapple enterprise, told me the same thing. The demand for salmon and sardines has remained undisturbed. “Coming back East, the same state of affairs has been found. Those of us who went through the experience of 1921 were a little hard to convince, because when stock prices broke then buying of canned goods not only stop- | ped, but shipments, started back to plants, and orders on the books were withdrawn en masse. But this year, though we have a Government request to estimate the extent of cancellations. Wwe can't do it, for there aren't any in our industry. Corporation News NEW YORK, November 20.—The following is today’s summary of im- portant corporation news prepared by Standard Statistics Co., Inc., New York, for the Associated Press: News Trend. Crude oil output for the week ended November 16 proved more favorable than forecast, the average of 2,620,000 barrels daily showing a drop of 11,200 barrels from previous week, whereas a small gain had been anticipated. Cur- rent production is only 130,000 barrels or 52 per cent above same date of 1928, the smallest percentage gain over the ¢orresponding period of the previous year for any week this year. The week's reduction resulted largely from a further drop of 31,500 barrels daily in the California output, while Okla- homa reported a fair sized increase. Reports from the conference of rail- way executives in Washington indicate that 1929 expenditures for capital im- provements may reach $800,000,000 and that the 1930 total should run consid- erably higher. If this forecast ma- terializes, the business of equipment companies, which already has witnessed sharp gains this year, should show further progress in the coming year. The Companies. Brooklyn-Manhattan Transit October net after taxes up 19 per cent; four months 23 per cent above year ago. Burger Bros. earned $1.74 per share in year ended September 30, vs. noth- ing a year ago. Butte & Superior Mining earned 13 cents per share in nine months to September 30, vs. 17 cents year ago. Chicago & Alton October net off 17 per cent; 10 months 37 per cent above ¥First: National Stores reported st Nal Tes rej pur- chasing own stock in market for treas. “% luroi‘;n {.n dry Machis enes un achinery common dividend omitted; had been cents quarterly. b Hecla Mining earned $1.48 per share in nine months to September 30, vs. 99 cents year ago. dlfiggo:’mu' Pi;ntnllg‘l declares extra 'nd of a share and quarterly of 75 cents. e International Telephorie & ‘Tele- graph—three of subsidiary’s seven At- lantic cables broken by earthquake, Irving Air Chute earned $2.05 per share in 10 months to October, 31, Lerner Stores president estimates %g;g net at $1,400,000, vs. $770,000 in Mergenthaler Linotype increases divi- gle.rln_g' r:ox;s gnio t? annuTnlly, also de- - extra paid on September 30, T ¢ 00 cents Mohawk Rubber earned $2.15 per ;m:m (Eoefgx;e u!-‘egenl taxes) in nine mber ersus entire 1528, 2 N Nation Surety's first 10 months’ pre- miums totaled $15,927, $895.511 over Toir Lger 'Y & Exiniat lonal Transit declares extra divi- dend of 25 cents and regulas °‘N25d":igu- d regular quarterly edicks, Inc., sales year end - tober 31 up 15 Per cencyum ye“ed.ggc pex?ac?g: ‘P:’l;: c 1iervice earned $1.39 re - mrgber &o‘ 12 months to Sep- ere Marquette Railway October net off 28 per cent; 10 nbngugnr — months 4 per cent el ne Mulliken earned $1.2 share in 11 months to Septemb:r StliA e Rollins Hosiery Mills earned $10.64 per share in year ended October 26 -Niles Crane & Hoist declares extra dividend of $1 and reg - terly of $1 on common. g e Sherwin-Williams Sepfember and Oc- over like months of 1929, tober sales up $1,000,000, or 10.8 per cent | The reduction in crude oil output for the last week, which contrasts sharply with a privete estimated increase an- nounced earlier, stimulated investmert purchases of dividend paying Standard Ol securities. The movement extended to some of the speculative oils. Responding to _the higher dividend rate announced Tuesday, the Consoli- dated Gas of Baltimore opened up 5 points at 90. Other utilities that moved u?ward included American Gas & Electric, Allied Power & Light and American Cities Power & Light B. Bids for railroad shares expressed confidence in the business outlook, such as was voiced by the rail executives to President Hoover when they announced their expansion program for next year. Pennroad Corporation opened fraction- ally higher. Chesapeake & Ohio, at 597, was up %. Pittsburgh & Lake Erie at 115 opened up 4% points. The higher-priced industrials firmed with the rest of the market. Quota- tions on these issues, many of which enjoy a rather limited market, had been slaughtered in the recent decline, Early in today’s session Aluminum Co. of America, Deere & Co. and Great Atlantic & Pacific Tea made advances. LT e NEW YORK COTTON. NEW YORK, November 20 (#).—Cot- ton opened steady today at an advance of 3 to 7 points, with the active months soon showing net advances of 10 to 13 poiuts on a continuation of yesterday’s buying movement promoted by fairly steady Liverpool cables, reports of a steady tone in the stock market and bullish features in the weekly review of 'l!ll:les “.l;nlher Bureau. lvance carried Janu: to $17.78 and May to $18.34, ‘b:‘l;{ 1“0% to 105 points above the low levels of last { week, which was evidently sufficient to attract some profit-taking. Reactions (:,(I: or 5 poin:f'g)lluléed, but the market comparat steady at the mi‘nm l;nl!-h:lflr. dy e end of verpool cables reported covering continental and Bompb‘:y buying ig that market and said there was a scarcity of contracts. Offerings here were light at the start, with very little Southern selling in eviderce. = First Mortgage Loans Lowest Rates of Interest and Commission Thomas J. Fisher & Company. Inc. Real Estate Investments JAMES Y. PENNEBAKER Nat.5291 1520K St. N.W. Money to Loan e ot s Joseph | Weller 40 Wash L. & Truss WASHINGTON’S OWN ENVELOPE COMPANY Good envelopes are good business, and it's good business to let this local factory quote on your envelope require- ments. AMERICAN CAPITAL ENVELOPE red sixty-six ) W 17% Pick (A)B&Co pf 1% Shubert Theater passes ad Corporation, at one hundred sixty. ler Elec Corp. 1 17 pri1y dend; had been Pt common divi- | and one-half dollars per share, any time in thirty days from date. All 1| dividends for which transfer books close during said time, go with the stock. Expires December 20, 1929, 2:45 p.m. 7. “When legitimately employed, puts,| calls, spreads and straddles are very valuable. ‘The insurance feature of stock _options—protection—is at _the base of such operations,” says A. Bridg- ens, a New York specialist in this fleld. " Trading in these unusual forms of Oiistock options is rapidly growing into 3 Il large business in the United States. To- day a large number of shrewd profes- sionals use the option method in the ||sgock market. | Secretary Mellon’s announcement that 1 |he will ask Congress for an additional i $175,000,000, making the total $423- 000,000, for the construction of public b buildings over a 10-year period brings ! to the public attention immediately the ' !! far-reaching beautification plans of the City of Washington. About $15,000,000 will be expended each year in beautifying the Capital and in its building program, and about $35,000,000 in Government construction || expenditures outside the Capital. (i The Government business is increas- !l ing yearly. The amount it is spending 44 in rentals in different parts of the { country to house its various activities .| is very large. This program is merely | one phase of the prosperity problem ;1 which the White House conferences are digging into this week. right, 1929. by North American News- i POTATO MARKET. l CHICAGO, November 20 (#) (United i States Department of Agriculture).— | Potatoes—Receipts, 48 cars; on track, 310 cars; total United States shipments, 612 cars. Trading slow, market steady: ‘Wisconsin sacked Round Whites, 2.20a 2.40. Minnesota and North Dakota sacked Round Whites, 2.00a2.20, few s 25: South Dakota sacked Round 1 hites and Early Ohios, 2.10a2.20; ¢ Idaho llc::(l Russets, 2.50a2.85; fancy, T, Bond & Sh (b6). . Bond & Sh pt (6). Pow Associates. . Pow Assoclates A P & L opt war.... P& Lzd pt A (7). Sharehold (31)... p G F cum pf(7). 95 Em G&F cum pf (8). 25% Smpire Pow pt (2). . 23 Employ Reinsur 1%. 147 Em.p Pub S.A(1.80).. 13% Eng P Sopt war..... 5% Evans Wallow Lead. 3% Fabrics Finishing. .. 3 Fairghild 5 Falrey Av 62 Fajardo Sugar .10 Falcon Les % Fandango Corp 6 wansteel Products 30 Fed Screw (13%). .. 50 Fer Enam A (16%).. 21 Fiat Stk deb ris. 20% Fiat Stk deb ris rets. % Film Inspect Mach. . 4% Finan Inv N Y (b8). 30 Firestone T&R new. .20 Kirst Nat Copper. Fokker Aafreraft. Ford Motor Can A Ford Motor Can B. Ford Mot of France. 10% Ford Motor Ltd..... 16 Foremost Fab (2 3% Foundation For S| 20 Fourth Nat Inv. 10 Fox Theat Cl A 21 Franklin Mfg (2)... 184 Garlock Pkg (1.20).. &7 Gen Am Invest new. 23 General Baking. ... 47% General Bak pf (6).. 7% Gen K Ltd rets (60¢) 20% Gen Empire Corp. .. 30 Gen Fireproof (2)... 13% Gen Gas & I3l (A)... 10% Gen Lau Mch (1.60). 40 Gen Print Ink (23%). 10% Gen Rlty & Utllities 60 Gen R & Util of (6 24 Gen Theat Equip vie 22 Gerrard (S A) Co... 80 Glen Alden Ceal (10) 13 Glean CHn wi.(1),. 12%4 Glohe Underwriters % Gold Colnuvvsensren RoRSEmnaSA®n®s crNHORG 0 8 » rRcnwalamEehen alarel aoa- 500 74% 12 1 5 41 2 22 4 14% e 1% 31 25 5 14 17 23% 4 0112 102% 101% 1 26 27 26 56 10% 23% 30% 16% 12 42% 13% 4% 314 25 114 22 4% 14% 6% 33% 25 17 23% 14% * Plerce Govern (1%). 4 Pilot RT A (120)... Pitney B P n(20c) Pitts& L E (5)......15 Pitts Plate Glass(2). Plymouth O1l (2)... 1 Polymet Mfg (31)... Powdrell & Al (3%4). Power Securities. ... Pratt & Lambert(4) . Premler Gold (24c).. Prince & Whitely Prudential Inv. Rainbow Lum ProdA Rainbow Lum ProdB Red Warrior A Reiter-Foster (10¢). % Rellable Sto 1 Reliance Manag Repetti Candy . Reynolds Met (new) Rike Kumler. . Roan Antelope Min. . Rochester Cent Pow. Rockland L& P..... Rooseveit Field,Inc. Ruberoid Co (4)..... Ryan Consolidated. . St Regis Paper...... Salt Creek Con (40c) Salt Creek Prod (2). Schift (The) Co (2 Schulte Real Esi Sch U Ge-$1 S pf (7). Schulte Un be-$1 St. Schlet & Zan(t175) .. Schlet & Zan pf 3%.. Seg Lock & H (50¢). Selected Industries. Sel Ind allot ofs 5% . Seeman Bros (3).... Sentry Safety Cont.. Sheaffer Pen (13)... Shndoah Corp(b6%) Shenan Corp pf (3). Sherwin-Willms(t4) Slerra Pac Elec (2).. Silica Gel ct. ... Silver (Isaac) Bros Sisto Fin Corp. 2 Snia-Viscosa. 1% Sonora Produ 1% So Am Gold & P 2 PE U= Py © o . warStorrarpnonS cnorvenarenaSas Sntennas 85'% South Penn Oil (2 50 SEP&L(b4).... 80 SEP&Lprof(4).. 20 SoCalEdpfB(2%). 657% 81% 24% 24% 2 Time-O-Stat A 3 Unit Corp pfd 7 United Gas Co 3 Un_Reproducers. 2 Vortex MIg A a8 Sahit il 2 Wayne Bump : 4 Wayne Pump pfd 2 Western Grocer..... 4 Wextark Radio Stores 17 Winton Engine xd 1 Wolverine Cem. . 4 Zenith Radio. . Total sales, 390.000 shares. 'BONDS. S.Zne seeees Sales in thousands. 1Commw E 1st 55 '53 A 100 100 Yesterday’s New York Stock and Bond Averages. From the 5:30 Edition. Associated Press. o figur Total sales, 2,7 Ten first-grade Ten value), §16,» “My only explanation of the findings is that the country has been witnessing what might be called a paper panic, an affair confined largely to stocks, which hasn’t much connection with the essential business of the country. “Because some of the symptoms are the same as those which appeared in 1921 and 1923 people are naturally moved to concern. But our experience and our immediate investigation in our own industry makes me feel certain that the national economic structure, so dif- ferently based today from what it was a few years back, is pretty nearly un- touched. I think it will be found that our industry’s condition is matched by similar ones in most of the staple lines of production. “Another of the points of difference between 1929 and 1921 that showed llvl in the study has to do with credit. | Canning is normally done on a good | deal of borrowed money, perhaps as much as $800.000,000 being absorbed at the peak of the packing operations, to carry the stock. In 1921 that sort of commercial credit for a period became unobtainable, or obtainable cnly at ruin- ous cost. This year we haven't a single report of trouble. I repeat, what the country has come through is a paper | panic and it will be almost forgotten pretty soon.” President Hoove! railroad callers yesterday, among whom were included several of the foremost transportation executives of the country, mostly stop- ped in Washington between trains that took them on to Chicago for the annual meeting of the American Railway Asso- clation. ~The regular session of that body will bring together representatives of nearly all the greater rail carriers in the country, and are expected to formulate a general statement of what capital expenditures the lines will un- dertake in 1930. The President’s pur- Pose as conveyed to them, it is under- stood, is to have the country given re- assurance, whether such reassurance | ings of Argentine wheat 4 paying $1.25 qu | United States Rubber's nin ;xrfizll‘;'s*' tire sales up 12 per cent over year ago. | <h¥§’°12 ;]rape .{iuice earned $6.83 per | s year en; R oy ed August 31, versus | estern Union Telegraph—Th: 10 Atlantic cables broken by earthquaka, | ~— | GRAIN MARKET. CHICAGO, November 20 (#).— v selling heze and relative. weaknig o} wheat quotations at Liverpool and Buenos Aires led to decided early down- turns in Chicago wheat values today. Better weather for the Argentine hai- Yvest was reported, as well as free offer- 1icent o F B O , Chicego w] afterward underwent sharp flggdl?lgggg downturns. Corn, oats and provisions \.\'erfoa‘!;n ;aslieu:. with corn starting at + 'a decline and s - & :ing {?"h". ubsequently re- ssertions that advances in wheat values had been too rapid, and that something of a reaction was due, formed a basis for much of the increased selling pressure which became manifest today. It was contended also that export business on a very large scale would be necessary to sustain advances. Mean- while, overnight export business in wheat from the United States appeared :roa nbs:u:!m?lty ut:llr ‘Volume. and new al salg lantic takings from Canada were ouses with connections Northwest were prominent today in selling Chicago Wheat future deliveries. The selling had the earmarks both of profit-taking for previous buyers and of extensive new speculative ventures as well. Reitera- tion today of Washington reports that the United States Department of Agri- culture was suggesting wheat prices were likely to improve and be consid- erably above present levels in January and February were without any appar- ent immediate effect in the face of dications of renewed slackness of for- ing % ‘to is necessary or not, that business stop- Page is not in contemplation, and that carriers will spend at least their regular budgets on betterments and improve- ments, N eign demand. Safety o rincipal Buy 6% Guaranty Notes and Bonds on Monthly Payments In order have curities, Iy payments cam be ranged. A 5230 bond ean be pur- ghased on payments of §25 6%, Denominations from $250 up Monthly payments if desired Send for Booklet, “The Success Plan” REAL ESTATE MORTGAGE & GUARANTY CORPORATION Capital Resources $3,400,000" Danish state raflways are experi- menting with Diesel locomotives, . 24 JACKSON PLACE