Evening Star Newspaper, December 15, 1929, Page 98

10 STOCK PRICE GAN S SEENBY AVES (Cleveland Economist Says Forecast of Starting Point Is Difficult. BY EDWARD C. STONE. ‘Washington bankers are always in. ferested in what Col. Leonard P. Ay of the Cleveland Trust Co. has to s regrading the financial outiook. latest forecast he discusses bear mar- kets,” speculation in business, business | in 1930, brokers' loans and the stock market. ggnrdmg the stock market says, in part: “It seems entirely probably that the general trend of stock prices in the com- - ing year will be an advancing one. but | it is by no means easy to make a Jjudgment concerning the point from ‘Which a ed advance will get un- -der way. The recovery of prices since the middle of November has been ex- ceptionally vigorous, but with business slowing down, and many reports of re- duced activity still to come, it may well be that some of the recent advance will be canceled before a substantial upward trend of stock prices becomes estab- lished. Stock prices werer genuinely low in the middle of November, as Jjudged by almost any reasonable stand- ards, but their percentage of advance in the 17 trading days following the final break has been as great as that of any whole year of the preceding gr.nt bull market, and it may prove to ve been over-rapid. “‘A fundamentally important fact that should be kept uppermost in our *think- ing is that a large part of the price advance of stocks in the bull market of the past five years was fully justified the inereased earnings and divi- dends of the corporations. In 1924, ‘when the bull market began, the market value. of the outstanding common stocks of 30 of the lce'gest corporations was a little more than eight times as much as their net earnings. This is the zelationship known as the price-earn- ings ratio. Old-Time Ratios Restored. “In 1925 stock prices advanced rapidly, but so did earnings, and the earnings ratio for the same 30 ‘companies in that year was a little less than eight. The earnings had increased even more rapidly than the prices. For 1926 the ra was again just nnder eight, and once more the progress of the - companies had justified ihe bull market in their stocks. In 1927, in 1928 and in 1929 the exploitation of the stocks outran the increases in the earnings ung.l the stocks instead of selling at eight being times the earnings were trade in at more than 18 times the earnings. At the closing prices of Noyember 13 the market value of the stocks of these same companies was once more down to just over eight times the earnings. The speculative part of the advance had been cancelled, and Stock were no longer dis- counting the future, but were reflect- ing the present. “A similar comment might be made about the dividend yields of these same stocks. ‘Some three months ago their rate of yield was a little more than 3 cent. At the present time it is 5%, per cent, which is just what it was | back in 1924 before the bull market | g0t under way. fall in stoci prices - has | y. The restored the old-time rela- fionshl):& between prices, earnings and “The bond market has been advanc- ing in recent weeks, and there is good reason to believe that it will continue to advance as interest rates decline. - It may well be, however, that the dura- tion and extent of the advance in bond not seem likely that ness sctivity will slow down te such an extent that idle funds will soon be inves'.menud at low r;turnl‘ Gold exgom are under way, and that ! will tend to restrict the fall of inf est rates. Meanwhile stocks of un- !uut.hned solidity offer better returns good bonds.” Bids Asked on Sanitary Bonds. ‘The Washington Suburban Sanitary Commission, of which T. Howard D\lckg:o l.;o%hflmlw ‘l‘lmh‘lws asked for bids on X ‘as] n ( d) Suburban Sanitary District m-, to Ry 4% per cent and run from 30 to 0 years. Sealed bids on these bonds will be opened at the office of the Sanitary Commission in the Tower Building, Fourteenth and K streets northwest, this city, on or before 3 o'clock next Wednesday a 00n. The bonds are to be put out in $1,000 denominations, as series “U.” the inter- est to be paid on July 1 and January 1. The from the new bonds will be used in the extension of the water and sewer systems in the towns surrounding Washington which make up_the sanitary territory. The bonds will carry all the sxemp- tions as to taxes of Maryland municipal ‘bonds end are guaranteed as to both princi) and_interest by Montgomery and Georges Counties by in- dorsement on each bond. The area of the suburban sanitary district is ap- proximately 91 square mlies and sur- Tounds the District of Columbia on three sides. Local Bonds Active Yesterday. In the final session for the week of the Washington stock market, bonds drew their full share of attention. Po- tomac. Electric Cons. 5s recorded a $1,000 sale at 100 and a $4,000 turnover at 99%. Washington Gas 6s, Series B, sold to the extent of $500 at 103}, while $1,000 meries A bonds moved at 1017, Wash- ington Gas 5s sold in $2,000 and $3,000 denominations at 993%. The closing bond sale was in Anacostia and Po- tomac Guaranteed 55 at 91. - " Capital Traction sold yesterday at 75 in a very light turnover, holders evi- dently waiting to see what the next dividend will be. Potomac Electric 6, per cent preferred moved at 111, while: 10 shares of Washington Railway & Electric preferred sold at 95). Pederal-American Co. common came out at 823, 35 shares of Mergenthaler changed hands at 107, 20 .more at 107% and 10 shares of Peoples Drug Stores preferred sold at 107. Banker Feted by Associates. Waldo W. Young, who has been a teller in the Anacostia Bank for the ast five years, was tendered a dinner ast evening at the Occidental by his close associates in the bank, including the president, Maurice Otterback. Mr. Young has just resigned to become busi- ness manager of American University at a reported substantial salary increase, The dinner was preceded by a theater party and was followed by the presen- tation of a brief case to the retiring banker. Mr. Young came here from Towa, where he had been in the bank- ing business some 20 years. He as- sumes his new duties at” American Uni- versity tomorrow. Burton’s Will Object Lesson. The fact that Senator Burton's will, when it was probated, disclosed that he had named the Guardian Trust Co. of Cleveland as executor of his estate deserves emphasis as an object lesson to men in private as well as public life, says Trust Companies Magazine. “Sen- ator Burton had a rare gift of prophecy, not only in political affairs, but also in economic and financial matters. In times of mnational financial emergency his counsel was always sought and re- cpected. He looked ahead and it was this characteristic which pros d him to do what so many men fail to do, namely, to put his house in order. His knowledge of financial matters im- rresssd upon him the superior value [FinanciaL | Sees Rising Market COL. LEONARD P. AYRES, Noted banker, predicts an upward trend in stocks during 1930, but finds it dif- ficult to judge the point from which a sustained advance will get under way. CONTRACTOR CODE OF ETHICS PLANNED Builders Desire to Remove Unfair Practices and Politics in Industry. BY J. C. ROYLE. Contractors and builders are ap- pearing to take politics and unfair ractices out of construction. With undreds of millions of dollars’ worth of Federal, State, county and munici- pal contracts to be let, they are de- manding that the low legitimate bid get the award. They hope to do this| through “prequalification” of bidders public works. In nearly all instances there already are statutes and regulations which pro- | bee: vide that the contracts for which bids are asked shall go to the “lowest re- sponsible bidder.” The trouble is, who is to determine responsibility and how? The construction men and their r- | antors hope to eliminate all quesllonsi by having the responsibility of bidders | determined in advance, before a bid is | uested or opened. the first move in that direction the American Association of State | Highway Officials and the Associated General Contractors of America have formed a joint committee whose activi- ties will center in prequalification. ‘The surety division of the affiliated bu- reau of the Associated General Con- tractors, comprising 35 surety com- panies, which put up 90 per cent of the surety bonds on public works, also has named a committee. The two com- mittees have gotten together and are now engaged in drafting a bill which will be finished by January 1. Terms of Measure. This measure will be submitted by State highway officials to the various State Legislatures. It will authorize the use of a prequalification system in letting contvacts for public work in each State. The measure in amended form would apply to qualifications of bidders on Federal jobs. The measure will also provide for the compiling of a record of each con- tractor enj in public works con- struction. is data will be a matter of permanent record and will be added to from time, as new work and changed conditions warrant. It will establish the skill, responsibility and integrity of each bidder who could be given consideration, and its proponents declare it will assure that in future cases the actual low bidder will gt the work. They say it will be of ine estimable benefit to the responsible contractor, for it would permit backers of private building programs to en- gage a contractor on the bases of past rformance, with responsibility and ity vouched for. Official approval has been given the prequalification of bidders on Federal highway work by the Bureau of Pub- lic Roads. Thomas H. MacDonald. chief of the bureau, explained that the bureau could not insist on the prequali- fication plan unless the States approved it, since the regulation of highway con- struction paid for with Federal aid is vested by law in the States to which the ald is extended. But he said he fa- vored using the plan on all work en- tirely under the supervision of his bu- reau and that this would serve as an example to the remainder of the country. In this connection Mr. MacDonald says: ‘The experience of the Bureau of | Public Roads in prequalification of bid- ders for forest and park road contracts has been eminently satisfactory. In the last year, of the 193 contractors who applied, 189 were qualified by this bureau. Of those who bid on the 89 projects, only one failed completely to carry out his work and only one other has shown signs of inability. Policy of Bureau. “The bureau has pursued what we feel has been a reasonable course in prequalification. We believe in the prin- ciple that no contractor capable of performing a particular piece of work should be excluded by setting up con- ditions which will prevent him from bidding on the job, but neither do we believe it is fair to the contractors on whom we must depend to accomplish the work to meet the competition of absolutely unqualified contractors. “The ability to furnish a contractor's bond appears to carry with it tne ability to finance and execute a contract. Nothing could be farther from the truth. I would much prefer to rely on prequalification on contracting or- ganizations properly to carry on the work than to rely on any form of bond. (Copyright: 1929.) sl Securities Investment. NEW YORK, December 14 (/). —Less than 30 per cent of the aggregate na- tional wealth of the United States is invested in securities, according to the publishers of the Encyclopedia Ameri- cana, who point out that this compares with more than 60 per cent so invested E.y the national wealth of Great Bri- in. i | ington and his summary of the auto- mobile business has cheered a host of shareholders in as many different com- panies. The head of the National Chamber of Commerce has relatives here and many personal friends. Refer- rlr:g to the 1930 outlook, Mr. Macauley said: “It seems conservative to expect an export business of upward of 1,000,000 units next year also, which is 20 per cent of our normal year’s production. “Exports added to our replacement expectations gives us a business of 3,- 750,000 cars and trucks, which is 75 per cent of a normal year's business. To this must be added new buyers, two-car families and a rapidly increasing truck and bus business, and should bring the total to 5,000,000." Continued road building expansion, which in 1930 is estimated will call for an e flflfl.flzgf will affect the motor industry most favorably, Mr. Macauley declared. He concluded by saying that the country at large need not worry about the motor vehicle industry. doubtless share to some extent any dif- of enlisting trust company service in 7 rranging g\ls private financial affairs, the ma Alvan ficulties that may beset the country, but we, w_}llhe never be down seriously or for 3 zine assorts. Mflw‘s recent visit to Wash- long, i | turbed by little incidents that seem to nditure_of more than $1,600,- D! THE SUNDAY STAR, WASHINGTON, D. C, DECEMBER 15 1929—PART BIX. }STUEKS LOSE PART - OF RECENT GAINS ;Rapid Market Comeback and Bearish News Cause Selling Movement. BY CHARLES F. SPEARE. Epecial Dispatch to The Btar. NEW YORK, December 14.—The 5,000,000-share market on Monday last carried industrial ctocks to the highest average of the post-panic period. On that day they had recovered about one- third of the loss established during two months of steady liquidation. By Fri- day morning stocks had again changed their course and had declined approxi- mately one-third of their recent maxi- mum gain. The question may be asked: Why should there have been such a sudden and pronounced turn downward? The answer is to be found primarily in con- ditions within the market, which had become unfavorable through a too fast moving recovery and in external devel- opments that were regarded as bearish. ‘The first of these developments was associated with a resumption of pool operations and extravagant rumors af- fecting certain stocks: also there was an increase in floating supply from those who had relieved firms and indi- viduals of embarrassing speculative commitments and who took advantage of the higher range of prices to feed stocks out. Others turned sellers to realize a portion of thels auickly made profits, Bearish Ttem in News. In the way of bearish news were the copper statistics, showing a rising to- tal of unsold metal and falling exports: heavy gold engagements for shipment abroad, a continued sag in the percent- age of iron and steel production, de- creased railroad car loadings, slightly firmer rates for time money, higher brokers' loal and one quite serious financial situation in an industrial com- pany that had greatly overextended it- self just prior to the fall in stocks. ‘With the experience of only last month still most vivid in its mind. the public has not had sufficient time to re- cover its poise. It has been more dis- suggest a price drop than it would have n a major reaction. It is quick to take fright and to reduce its holdings, al- though there is every indication that it expects to see materially higher prices within the next six or nine months. This state of mind is being capitalized by a number of bold operators who have recently resumed the campai; that was nipped in the bud by the New York Stock Exchange questionnaire on short selling. Bankers Turn Back Stocks. For some time the market must deal with the supply of stocks in the hands of the bankers who did a good piece of rescue work in October and November, as well as with widely scattered amounts held' by individuals and corporations that bought at the recent low price range, but did not commit themselves then 'to a permanent investment. It has been possible this week for any one who made purchases on Octo- ber 24 and October 29, the two days of most violent declines during the Au- tumn, to have sold out at a fair to a substantial profit. A study of the stock list on those days will establish this fact beyond dispute. Furthermore, out of approximately 250 different issues all but about 30 were much higher last Monday than they were on October 20, the exceptions being mainly in the metal stocks and in those of the small manufacturing and distributing compa- nies. Obviously, there has been much ity during the recent sharp rise in prices. ‘The comparison of quotations on No- vember 13 with those of last Monday is even more favorable to the later buyer of stocks than to those who came into the market on & larger scale when they thought the low days had been reached in October. Unquestionably, there has recently been a return to Wall Street on a considerable scale of stocks pur- d it not recently gone through (™ 87 | policy holders. advantage taken of this profit possibfl- brin [ By the Associated Press. | Brokers' loans . . Federal Reserve system ratio . Holdings (United States Securities .. Gold reserve Rediscounts Bank clearings Car loadings week ending November 30 Crude ol production (barrels) ........ Stock sales (N. Y. Stock Exchange) Bond sales (N. Y. Stock Exchange) New financing . Call money rates Time money rate . Commercial paper s Week’s Financial High Lights Last week. Same week '28. $3,392,000 $5,175,751 71.5% 5% ‘This week. $3,425,000 71.6% $386,934 2,964,148 768,922 12,033,285 $235,507 2,626,975 1,028,352 13,670,660 $355,144 2,922,966 872,310 12,950,720 (Final three ciphers omitted in above ) 950,280 2,638,200 22,451,760 $86,761,000 $167,702.000 12% 412-4% % 5-5Y % 837,107 2,630,550 23,455,150 $68,195,000 100,133,000 415 % 434-5% 5-5Y% 23,164,820 $51.909,000 $86.204,000 6-9% 15137 512% TO REFLECT Break Had Di BY 1. A. FLEMING. In all probability the controller of the currency will issue a call for a state- ment of condition of national banks as of December 31 of this year. This has long been the custom of the con- troller and also of superintendents of banking in the several States as well, in order that a concise and correct analysis of tne banking condition of the Nation may be made at the close of the calendar year. 1t is also almost certain that the im- portant items of demand deposits and savings deposits will both show a se- vere loss, if not one of the most serious losses on record. Of course the crash in New York) stocks may be charged as the cause of losses directly. although the taking out of $600,000,000 Christmas savings from the various banks that “clubbed” in that line of business and the heavy pay- ments of dividend and interest ac- counts will help swell the total decrease. Borrowing on Insurance. Borrowing on life insurance policies, render value during the period when traders were making frantic efforts to eet margin calls of excited and scared brokers and endeavoring, in many cases, to take their securities away from brokers entirely, was enormous. Borrowing of this character also took millions out of the banks. So heavy were the drafts that life insurance companies had to go into the borrowing field to care for the wants of their embarrassed ‘When the number of great life insur- ance ccmpanies are considered the enor- mous amounts of this class of borrow- ing may be the better understood, but all atumpugt;stmnus would be fool- ish in the extreme. It may readily be imagined that be- fore borrowing on one's life insurance the cash in bank would suffer severe drains. Brokers had been calling for almost prohibitive margins for some days, another cause for reduction in bank deposits. Todnymblnker: are “analyzing all loans” very carefully and accommodat- ing requests that they - consider con- servative and not speculative. Many are also analyzing their investment ac- counts with varying degrees of regret or satisfaction as the case may be. Roasting Bears. Said Representative Sabath. the Chi- cago man, accredited to Tilinois: T ask of what possible good or aid are these men that are permitted every few years to destroy millions of men. ruin industry, destroy stability, and g about destruction, not only of millions of dollars, but even scores of lives?” He was referring to the recent de- bacle in stocks, and promised to ad- vocate a tax on bears’ short sales. Here's a proposition! Code of Business Ethics. . Pierce Riddle, director of the per- m}l‘nel of the American Security & Trust Co., is the author of a neat little chased during the final week of the de- | cline. All of this has had a pronounced effect on the internal market situation and has brought about a readjustment there that was quite necessary. Pool Buys Few Issues. ‘There have been most extravagant statements made concerning the scope and operations of the bankers' pool which came into active operation late in October. The commitments to this consortium were $250,000,000. It is un- derstood that less than half of the available resources were employed in purchases of stocks. The total holdings of the pool at their maximum were be- tween 1,000,000 and 1,250,000 shares. A large part of this was in a compartively few issues, such as United States Steel, Anaconda Copper and General Motors. The policy of the bankers was to support the general list by influencing the market for leading issues. It is known that there has been some liqui- dation by the pool on strong days, but it still has control of substantial blocks of stocks which have been nearer this week to their purchase price than have most_all others and which represent the three major industries most affected directly or sentimentally by the stock market collapse. If there is to be a secondary reaction in the general market carrying prices down to, or below, the November level, as some observers claim, it will be the result of fear produced by bear attacks on prices rather than a consequence of diminishing intrinsic values. Those who look at the outlook without bias can not see how business is to escape a brief period of quite sharp readjustment to stock market losses and to the more cautious attitude of producers and con- sumers that this has created. There are differences of opinlon as to the dura- tion of the industrial decline, ranging from three months to nine months. Few anticipate a major recession, as for- tunately the conditions that would ordi- s’al'llllySlbrh:g thi-;1 about following a all Street smash are not prese this time. " fiens Strange as it may seem, the indus- tries that are most likely to suffer are those that have been well managed and in which the element of financial strength is most conspicuous. Among them balance sheets may show up more favorably for a time than current earn- ings. One fact to be remembered that there was a considerable shift in the control of stock holdings in Octo- ber and in November, which will mean in the future more conservative and ef- ficient managemen and less emphasis upon speculative operations. Out of this the individual shareholder will be the gainer, Interest Rates Harden. In the field of banking this week there have developed several important events. As the year closes the demands for currency and the shifting of funds between banks ‘and corporations inci- dent to the January financing have had a tendency to harden interest rates. Time loans have advanced from 415 to 5 per cent. A substantial movement of gold to Europe is under way. Both Lon- don and Paris are reclaiming gold from this market, the one to build up its re- serves to a normal basis and the other to add what is already the largest gold holdings of -nknmon, excepting the United States. r what reason, no one but French bankers can explain. A hase of this during the week was the reduction for the third time in recent weeks in the rate of rediscount of the Bank of England, followed by another cut in that of the Bank of Sweden, with “We shall | other adjustments to the lower money ! tlements, in which there seems to be a trend promised throughout the world. Not so favorable are conditions in important, as the Germany. This is Mmmgflualm& is | rendering their charters in favor of pamphlet in the form of a small book setting forth the duties of each em- ploye of the institution, in the plainest of glish, consise—and simple. With the use of this code the employe finds his duties outlined so definitely that there is little need for asking questions. Two sections have to do with the “treatment of customers” and “the tele- phone,” which are especially instructive to the employe. These and other features of the little | pamphlet have been given wide circula- tion through requests for copies. Re- quests have been received at the trust company for coples from business firms in 97 cities, in 25 States and Canada. One firm asked for 50 copies, which were furnished by the trust company, and almost daily requests are being noted. Financial Possibilities. Proposed change in the Federal Re- serve act, plans for the enlargement of the branch blnklnT. systems of the States, for the establishment of laws pro for holding companies and bank mergers, with the intent of giving greater rights and privileges to national banks, that they will be induced to re- main in the system, rather than sur- render their charters and join State systems. Banks of smaller cities and country towns are up in arms to fight for their reservation against being swallowed larger institutions or taken over by holding companies or yet merged with a larger institution. The matter of holding companies, generally being urged at this time, is new to the lawmakers and will be dis- cussed in all its phases. Representative Goldsborough, a mem- ber of the committee on banks and banking of the House. in reply to a question as to his position on the hold- ing scheme had this to say: “We should stop them if we can. There has never been any disposition on the part of the city banks to take: over the country banks until recently. “The whole question of holding com- panies is so ne wthat neither the State Legislatures nor Congress has had an opportunity to enact restrictive legis- lation.” Those advocating an extension of branch bunk{nx‘ prmlfle.: llnse v.h;;r rgument upon four principal grounds: " First, !hll? national banks are sur- State charters in order to get branch banking privileges; second, that branch | banking would tend to stop group bank- ing; third, that the funds available in the country bank are not adequate to take care of the rural business; fourth, that the personnel at the head of the country banks are not of a caliber to so conduct the banks as to prevent failures. “The relative resources of national to State banks have been practically constant since 1922, except that the merger tendency of last Spring and Summer, having practically no rela- tion to branch banking, has caused a country are more closely tied in at present with those of the United States than they have ever been before, for Germany has been leaning on this country for loans to assist in repara- tions payments and in the recovery of her _internal and foreign trade position. ‘The coming week will be a critical one in German politics. Its results may have an important bearing on the pro- am for reparations payments set up the Young plan and to be adminis- tered by the Bank for International Set- in many cases giving them up at sur-4 | 16a16 ANNUAL BANK ‘CALL EXPECTED DROP IN STOCKS Readjustment of Accounts After Big rect Effect on Savings Deposits. slight change in the ratio in favor of State banks: and where national char. ters were relinquished in favor of State charters it was generally because the bank desired to engage in some busi- ness permitted under. the State law, and not permitted under the national banking act, and not because of the desire to create branches not possible under the national act; group banking —that is, the buying by a holding com- pany of the majority of the stock of a group of banks—is found in States which permit branch banking as well as in States which do not, the holding company constituting in many respects an investment trust for bank stock. “Resources of country banks are of necessity made up of community 1e- sources and of economic necessity must in general be adequate for the business of the community, and on the very few occasions when coun’ry banks cannot take care of some seasonal need there is no serious difficulty in obtaining funds from correspondent banks in larger centers.” I Baltimore Markets | Special Dispatch to The Star. BALTIMORE, Md., December 14.— Owing to changeable and unseasonable weather conditions the past week, the live poultry market continues unsettled and values lower, especially on turkeys, which are selling lower today than at any time in the past 10 years. As long as the warm weather prevailing today continues only limited shipments are advisable as the ‘demand is light, and heavy chipments only tend to lower values. Large shipments are advisable beginning Tuesday, however, and con- tinuing up until the following Monday for live stock and early Christmas eve for dressed poultry. If weather is fa- vorable, dressed poultry should be ship- ped scalded stock, head and feet on, which is preferred on this market, and only choice, fat birds should be shipped. Poultry Prices. ‘The market for live turkeys closed today at 26 to 28 cents a pound for young birds, 8 pounds and over, but old toms as well as crooked breasts, will not bring over 20 to 23. Colored Spring chickens, 4 pounds and over, are bringing 25 and smaller 22 to 24, but Leghorns are generally slow sale at 20 and 21. Old hens, 412 pounds and over, in fairly good demand at 25 and 26, but smaller stock moves slowly at 20 to 22, with Leghorns selling mostly 18 to 20. and all poor, thin fowl neglected at 17 and 18. Ducks and geese from nearby points in liberal receipt for the demand, which is limited, and the market is very dull with values lower at 16 to 23 for the former and 16 to 24 for the lat- ter, but it takes large fat stock to bring top values. Market for guinea fowl and pigeons holds steady at 40 to 60 each for the former and 25 a pair for both young and old of the latter. Eggs continue in rather light receipt from native and nearby points, all de- sirable stock meeting with ready sale, and the market holds steady with values a shade higher at 54 cents a dozen for hennery white firsts, 53 and 54 for firsts and 40 to 45 for pullet eggs. Current receipts sell mostly 43 to 45 as to size and quality, but all dirty eggs as well as culls are neglected at 25 to 30. Potato Market. White potatoes in moderate receipt, but ample for the demand, which con- tinues slow, and the market showed little change from last week at 3.50 to 4.00 a barre] for No, 1s and 2.50 to 3.00 for ungraded, but No. 2 stock moves slow at 1.50 to 2.00. Sack potatoes sell- ing mostly 2.40 to 2.50 per 100 pounds for No. 1s and 1.75 to 2.25 for un- graded. Sweet potatoes and yams also in moderate receipt and the market holds steady under a fairly good de- mand, but centered on first quality, well graded stock at 2.25 to 2.75 a bar- rel for the former and 1.75 to 2.50 for the latter, but ungraded stock will not bring over 1.50 to 2.00, with bushel hampers selling mostly 75 to 1.35, as to size and quality. Native and nearby garden truck in liberal receipt and more than ample for the demand, with some lines very hard to move, even at concessions in price at the following quotations: Cabbage, 30 to 50 basket; carrots, 2.00 and 3.00 hundred; kale, 1.75 to 2.00 barrel and 40 to 60 bushel; onions, 1.75 to 2.00 per 100 pounds: parsnips, 50 to 65 basket; pumpkins, 5.00 to 15.00 hundred; spinach, 75 to 1.25 bushel, and turnips, 25 to 35 basket. Live Stock Market. good demand and with receipts of this sort light both on the wharves and at the stock yards the live cattle market holds steady but easy on common to ordinary stock. Old sheep. when clip- ped, hard to place, and it is more a question of buyer than price. Quotations today at Light street first | wharf: Beef cattle, quality, pound, {10a11; common to medium, 8a9; bulls, as to quality, 7a9; cows, choice to fancy, 5a7; common to fair, 4a5; oxen, as to qunm{ calves, veal, choice, Ya fat, 141al5; large, rough, 13';al4; thin, 8a10; rough and common, 7a8; sheep, choice, 2a5; old bucks, 3a4; Spring lambs, fancy, pound, 12a1215; choice, 1012a11; hogs, straight, 9a9',; sows, 8a9. Live pigs. 10a15; shoats, 10812, Receipts of good stock rabbits con- tinue light and market shows an ad- vance for fancy stock, but all poor stock is slow sale at inside prices at the fol- lowing quotations: Choice, 2.50a3.25 dozen, and fair to good, 1.25a1.75. Settling prices on grain: Wheat—No. 2 Red Winter spot, 1.22'2; No. 2 Red Winter garlickly spot, 1.21; December delivery, 1.21; January delivery, 1.211;. Corn—Nominal 2 Yellow Domestic, new spot, 1.06a1.06. Cob Corn, 4.60a4.75. Oats—No. 2 ‘White Domestic spot, 56;: No. 3 White Domestic spot, 55. Rye—Nearby, 90a1.00. Dl TP ey U. S. STEEL PLANNING PROGRAM OF EXPANSION By the Associated Press. NEW YORK, December 14.—The United States Steel Corporation is ar- ranging for the expenditure of $300,- 000,000 on a am of expansion and improvement, which will take about | three years to complete, according to Dow, Jones & Co., and which will re. sult in a substantial increase in the corporation’s productive capacity, very lukewarm interest in the United States and in several of the countries of !urog that should be directly con- cerned in its success. | i Nearly half the people of Japan, Chosen, Karafuto and Taiwan have opened postal savings accounts, « 64.2% ! For first quality cattle there is a| TRADING IS DRAGGY| AT D. C. MARKET { Interest of Public Shifts to| Christmas Presents, Dealers Declare. Miserable weather conditions and consumers holding back to splurge dur- ing the Christmas holiday season and spending much of their time in the selection of Christmas presents for their relatives and friends formed a combination which made trading in the wholesale district not altogether satis- factory the past week, dealers decl “The coming week should tell a dif- ferent story,” was the suggestion of a dealer yesterday. “People have to eat.” he added, “and at Christmas times they are naturally expected to make greater demands upon dealers in foodstuffs thal the time of the year.” Wholesalers see no reason why the approaching holiday season should be any different from the past seasons. Attractive Displays. “And, certainly,” continued a com- mission merchant, “there will be one of the most attractive displays this season ever witnessed in this city. It| will be next to impossible to name any commodity which cannot be obtained, irrespective of the question of this being the Winter season.” Closing of market late yesterday found many dealers with fairly heavy supplies of foodstuffs on hand, enough with which to conduct business tomor- row, Monday usually being the quietest trading day of the week. Arrival of pine and cedar trees, quantities of wreaths of evergreens and bunches of holly and mistietoe from nearby and distant points already has given the wholesale district much the appearance of the holiday season. More than 100 applications for space in which to conduct the business of selling Christmas decorations next week and the two additional days of the suc- ceeding week is taken as indicative of the vast amount of business in this line that is expected. “It also is suggesting of & further de- E:etlon of the pine and cedar forests Maryland, Virginia and New Eng- Jand, thousands of the trees to be of- fered here coming from the woods of Maine and Vermont,” said a dealer. The first carload of Vermont trees reached the local market Wednesday afternoon, costing, delivered, more than $1,000, according to the consignee. It is expected they will sell from 50 cents to $10 each, trees from nearby and possibly some from North Carolina selling cheaper. Most of the largest trees, according to dealers, gmhhly will ‘be purchased for use in church and fraternal organi- zation celebrations. It is stated that many owners of land in the nearby States already have posted their against trespassers, many motorists having become accustomed to stopping in the woods alongside the State roads and cutting trees without consent of owners. R i “It is prol le,” suggest 4 mar- ket dealer, “that there will be the usual thousands of trees left on hand at the close of the Christmas market season to _be burned. “And it's a pity,” he added, “that 50 many trees have to go to the dis- card each year.” ‘Turkey Supplies. Continued interest in the question of turkey supplies and prices which will prevail during the approaching holiday season was dlzphfi_‘ed all the lrut week, and additional interest will be dis- played the next eight days. Market conditions yesterday recalled to poultry dealers conditions which prevailed many years ago. Turkey re-; ceipts showed a gradual increase the | past. few days and receipts of chickens ! were 80 heavy that the bottom literally | dropped from the market. “Receipts were s0 heavy,” sald a dealer, “that some haulers returned their supplies to the country to hold for higher prices.” One feature lacking the past few years, explained a dealer, was the bring- ing of turkeys to the local market in droves. Flocks of several hundred tur- keys usually were driven through the streets just before Christmas, the dealer stated, coming from Maryland or Vir- ginia and with a dressing plant as their destination. “In these strenuous days, however,” he added, “such movement would ap- pear so slow that the advertising benefit would be lost.” Poultry dealers continue to predict a cheap turkey market for the Christmas holiday season. They expect chick- ens, ducks, keats and capons also will b cheap. Rabbits continued to appear | here in large quantities all the past | week, dealers selling them at a range of prices extending from 15 to 30 cents, the exact price being determined by size and condition of receipts. Commodities of every description continued in plentiful supply all last Week.h and del{l!l’l y".‘hyln:h!" will be no shortage of an wanted for the Christmas dinner table at prices which probabl will reasonable. Prices at the close of last week's mar- ket were substantially the same as prices which prevailed yesterday morn- ing. as follows: Butter—One-pound prints, 40';a4l; tub, 39%;a401%; store packed, 30a32. Eggs—Hennery, 55a56; fresh selected, 53a54: current receipts, 48a50. Poultry, alive—Turkeys, young hens and toms, 28a3l old toms, 26a27; Spring chickens, 'ge, 24a25; medium, 23a24; broilers, 28a30; Leghorns, 22a23; fowls, 25a26; roosters, 20; ducks, 15a20. Dressed—Turkeys, young hens and toms, 36a37; old toms, 33a34: Spring chickens, large, 32a33; medium, 32a33; broilers, 35a36; Leghorns, 28a30; fowls, 28a30: ducks, 28a30; roosters, 23a25; capons, 40a45; keats, 70a80. Meats—Beef, 20a22; veal 24a26: lamb, 24a27; pork loins, 22a25; fresh hams, 20a22; fresh shoulders, 18a22; smoked hams, 25a26: smoked shoulders, 18a20; bacon, 25a26; lard, in bulk, 13; in packages, 12. Live stock—Calves, 15; lambs, 12'3 al13. Frult displays, particularly attractive the past week, promise to be even more 80 the coming week, dealers realizing the coming week is the time above all others to make the best possible show of such products. Oranges, grapefruit, pineapples, pears, grapes, alligator pears, large Florida persimmons and kamquots always are in demand for the Christmas holiday trade, some for food and others for decorative purposes and it is promised that consumers will be able to get all |, the supplies they desire. It also is expected that there will be plentiful supplies of strawberries to be had during the holiday season, berries. | product of Florida growers, having ap-| peared here several days ago. Dealers also expect the fruit will be fairly cheap M: for the holiday season, prices already having dropped from $1.75 a quart 10 days ago to 75 cents a quart yesterday, and it is deemed probable that the price soon will drop to 50 cents. Lima beans, in bushel baskets, and okra, in 6-pan crates, reached here from Mexico the past week. The con- tainers came securely "W paper to prevent the possibility of freez- ing. They reached here in freezing weather, the frosty weather not having affected them, and presented the ap- pearance of having been freshly gather- ed. Cuban growers also supplied local dealers quantities of vegetables. Vegetable Shipments. PFlorida, Texas and California growers also were ameng those who supplied local dealers quantities of fresh vege- tables during the past week and who also will continue shipments for the holiday market. Moderate receipts of celery from New “(Continued @n Ninth Page.) I FIN NClAL' Reports to Hoover Show No Curtailment Of Christmas Buying There is no slump in Christmas buying throughout tne counsry. according to reports received by President Hoover. The Department of Commerce and other agencies have advised him that Christmas buying is going on satisfactorily and in some localities, in fact, more money is being spent this year than in 1928. These reports have made Mr. Hoover feel gratified, since he considers them an index of good business conditions. RAIL MERGER PLAN 1S EXPECTED SOON Wall Street Hears Report of I. C. C. Is to Be Published. Special Dispatch to The Star. NEW YORK, December 14—There was a report current in Wall Street to- day that the Interstate Commerce Com- mission would release its consolidation plan for publication between the closing of business and the opening of the Stock Market on Monday. On several occasions the commission has adopted this plan, especially when it had im- portant decisions to give out in rate matters. ‘Washington advices today were to the effect that an immediate announce- ment from the commission was unlikely. The rumor was responsible for a strong market during the day’s session | in railroad shares. Wall Street has been looking forward to the consolidation lan as one of the influences that might helpful to stock speculation and would produce a new group of market leaders. Recovery in Rails. The rails went through the greater part of the big bull market without making much response to the specula- tive enthusiasm of the public until late in the Summer, when the investment trusts and trading corporations began buying them exclusively and pricess snot up quickly. Then quite a number of is- sues exceeded their old highs made in the big railroad markets 25 years ago. In the October and November declines rails dropped an average of over 50 points at the same time that the aver- age of industrials and public utilities declined nearly 25 points and the gen- eral average of the market 50 per cent. Today the ralls are about 21 points up from the November low range, while l1and | the recovering in the other group amounts to around 70 points. Prom a market standpoint the Inter- state Commerce Commission plan will have more effect sentimentally than in causing new purchases of carrier shares by groups to be recommended in the commission program. Such buying as was necessary to the formation of these groups has already taken place in large part. Instances of this were the acquir- ing of control of the Western Maryland by the Baltimore & Ohio in 1927, and later the purchase of the Rockefeller interest in the Wheeling & Lake Erie jointly by the Baltimore & Ohio, New York Central and Nickel Plate. Subse- quently the Pennsylvania railroad took over the Loree holdings of the Wabash and the Lehigh Valley and located them with the Pennsylvania Company. Recent Purchases. The Van Sweringens long ago com= pleted their acquisition of Erie. Chesa- peake & Ohio and Pere Marquette stocks. The Pennroad Co., another Pennsylvania Railroad subsidiary, has within the past nine months bought out Henry Ford's interest in the Detroit, Toledo & Ironton and is said to have in the Pittsburgh | & West Virginia and the Boston & Maine. The Baltimore & Ohio has made a trade with the Nickel Plate which has put it in possession of the Buffalo, Rochester & Pittsburgh. These have been the important strategic moves in the Eastern territory that were made in anticipation of the groupings found advisable by the Inter- state Commerce Commission. In other sections of the country there have been no important pur- chases of the stocks of one line by other lines since the Interstate Com- merce Commission imposed a series of objections to_ plans for consolidation affecting the Kansas City Southern, St. Louis Southwestern, and Missouri.Kan- sas-Texas. The Missouri Pacific group- | P® ing has been practically completed, and in its present form, recommended to the commission by its own exam- iner. There have been indications from time to time ti some of the trunk lines were flirting with the Chi- cago Great Western and the Chicago & Eastern Illinois but nothing con- crete has so far been divulged. Among the transcontinental lines the status quo has been maintained generally, with the possible exception of a fur- ther increase by the Union Pacific of its holdings of Chicago & Northwestern common _stock. So far as unofficial reports show, there will’be no occasion for ihe resale of stocks bought within the last tnree years by the trunk lines as a_part of their consolidation program. This also does not involve any change in such major holdings as the Pennsylvania has in Norfolk & Western or the Balti- more & Ohio has in Reading. COTTON IS L OWER IN QUIET MARKET| Market Sags 6 to 12 Points in Late Selling Move- ment. By the Associated Press. NEW YORK, December 14.—The cot- ton market was very quiet again today but developed a somewhat easier tone in the late trading under week end liquidation and selling, supposed to be partly for Southern account. January declined from 17.07 to 17.02 and closed at that figure, with the general market closing barely steady at net declines of 6 to 12 points. Putures_closed m,eldyé g to 12 points 16.98; 17.30-31; ; _ December, 17.70; October, March, ling, 17.20. May, ; July, let, middli 4-55 17.64. Spot qui January Marcn - Ay July i October . December penin May, 17.62. FRIENDSHIP RESTORED. .05; _March, ;' December, S2323723° S for Credits Granted Austria. VIENNA, December 14 (#).—Chan- cellor Johann Schober last night told the National Assembly that the tradi- tional friendship between Italy and Austria had been restored. He sald that Premier Mussolini had notified Austria that Italy was prepared to waive her claims for precedence for Italian relief credits granted Austria in favor of a new investment loan which Austria is preparing to make abroad. s e Missouri has 13 more newspaners and than in 1927, o < January, ¢ ECONOMIST FINDS LONG PULL BULLISH Gage P. Wright Sees No Reason for Liquidation in Stock Market. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YOBK, December 14.—Gage P. ‘Wright, the New York economist, does not believe that the current temporary hesitation in business conditions war- rants the present stock liquidation. He does say, however, that wide fluctuations in stock prices should be expected and the relative price changes will appear more severe when measured in terms of points rather than by the true measurement of per cent. A stock, for example, that is selling at $50 which breaks to $40 means a 30 per cent break. But a stock selling at $500 that breaks 50 points is only a 10 per cent break. So when newspaper headlines announced a break of 50 points in a certain stock it looks bad for the party who is interested in stocks, but it may not be anywhere like as significant when the drop in per- centage is considered. Mr. Wright, who measures the opin- , ions of all of the outstanding market experts in the country into a composite one, says that their recommendations centinue “bullish on recommended stocks for the long pull.” But very few of the well known ex- perts predicted any such crash as oc- curred in the stock market. The rise of stocks during the last three weeks is to be short lived—if the prediction of Roger Babson proves cor- rect—"just a temporary rally in a ‘bear’ market,” is what he calls it. Insurance and War. Dr. John G. Hibben, president of Princeton University, told the insurance presidents that success in life can be measured only in one way—"as to what extent living brings enduring satisfac- tion.” “No one can be successful in business if his activities bring him little pleasure and if his nature becomes soured, mo- rose, cynical and life itself a futile hing. “The fundamental principle of all business is reciprocal advantage—ad- | vantage to him that sells and to him who buys. Otherwise he who sells is exploiting the credulity and ignorance of the buyer—the one is gaining and the :lhel‘ is losing,” said this university head. Urging the life insurance men to use their tremendous power in the inter- national field for the cause of peace, this successor of Woodrow Wilson de- clared that nations, as well as indi<™ viduals, are now confronted with the serious problem of the business of life— a problem not merely of living, but of survival. It is a new world order in which there “can be no place for war.”} No organized group is more power- ful in the development of public opin- ion against war than the officers and directors of life insurance companies. Art Treasures Escape Storm. ‘The devastating storm raging around Britain’s shores this week, causing the loss of hundreds of lives and untold property damage, did not, much to the relief of art lovers throughout the world, wreck the Italian treasure ship Leonardo da Vinci, which arrived in England, during the storm, with one of the most valuable collections of art ever assembled on one ship. T total cargo of these valuable paintings (300 paintings), as well as sculpture, drawings and tapestries, probzbly exceeds $50,000,000 in value. One Giorgione picture is insured for $2.500,000. + Had these works of art, some of the finest in all Italy, with 10 from the Uffizzi, 10 from Pitti, 11 from the Cor- sini Gallery, 11 from the Venice Acade- my, 20 from Brera and 150 from private and municipal collections throughout Italy., gone down at sea it would have been an international disaster. ‘These precious works of art were sent to England for an Italian exhibition at the Royal Academy of London, begin- ning January 1. New York Bond Sale. New York City borrowed $65,000,000 this week and agreed to pay 4.35 per * cent annually for it. When the last big New York bond sale took place, on May 7 last, an issue of $52,000,000 of 4.25 per cent subway corporate stock was sold on a 4.80 per cent basis. About a vear ago. Novem- ber 20, 1928, an issue of $55,000,000 was sold on a 4.20 per cent basis. For the issue of $65.000,000 of 4.50 r cent bonds, a premium of $1.526,655 | was obtained. - This makes the cost to the city 4.351 per cent annually. It i is the highest rate the city has paid in many years for long-term financing. Nevertheless, Controller Berry consid- jered the sale “highly gratifying.” The issue was oversubscribed four times, with total bids amounting to $265,000.000. New York City's financial statement of December 1 showed an assessed val- uation of taxable realty of $17.133.- 817,000, while the net debt amounts to $1,245,524,515. New Labor Leader. A coming labor leader! His name is H. H. Broach. and he has just been elected to the presidency of the International Brotherhood of Electrical Workers, succeeding the late J. P. Noonan. Young Broach, now 37, has been vice president of this union for 10 years. He has traveled extensively, knows the country, has an engaging personality, and unusual ability as a speaker. Mr. Broach began his labor union career as a member of the Oklahoma City Union, where he became record- ing secretary. A few years later ne became business representative of the Des Moines (Iowa) local, then national cl;;;{;nm- and finally vice president in This dynamic leader of the 150,000 electrical workers, scattered all over the United States and Canada, looks much younger than his age. In union circles he's known as a progressive and a hustler, the new business type. Three years ago he entered New York, where the local union was badly disor- ganized. After a terriffic fight, he won out, reorganized it and made it a prosperous institution. He is an outstanding champion of the 5-day week—a labor leader whose career has only started. (Copyright. 1920. by North American News- Paper Alliance.) RESTRICTION PLAN AIDS RALLY IN TIN PRICES Special Dispatch to The Star, [} NEW YORK, December 14.—Reports of progress in the general movement for restriction of tin output in the chief producing centers of the world have contributed to an unturn in the price of tin on the London Metal Exchange this week, according to cable advices received by members of the metal trade here today. Strong support has been accorded re- striction plans in Malaya, according to d in thick | Italy Prepares to Waive Precedure | word received in London, with indica- tions that there will be a fortnight's suspension of mining operations over the Chinese New Year holidays, and that all work will be discontinued on Sundays hereafter. Chinese miners are calling a special meeting to consider the restriction proposal to take effect the first of next year. Sea Bottom Believed Sinking. SEBASTOPOL, (#).—That the bot- tom of the Black Sea is gradually sink- ing is the conclusion of a Soviet scien- tific expedition which recently finished a study of that body of water and also o4 the Anov Sea. g