Evening Star Newspaper, December 29, 1929, Page 29

FI ADVENT OF BUYING MARKET FORECAST Magazine Sees Five Reasonsl for Resumption of Stock | Purchases. BY EDWARD C. STONE. Five important factors are expected to enter into the securities situation and eventually turn the “sellers’ mar- ket” into a “buyers’ market.” These potential sources of buying power, as; summarized by the Financial World, are: 1. The usual January reinvestment demand, it being estimated that nearly a billion dollars in interest and divi- dends will be disbursed around the first of the year. 2. Buying by those who sold vlrflousi securities to establish tax losses. 3. Buying of corporation execuuveu] and banking interests who are close to individual situations showing improve- ment. 4. Eventual forced buying by those who are *short” of the market, the most potent element from the stand- point of quick price movements, “for the cowardice of the ‘bear’ is notorious.” 5. Buying by the gneral public, which will follow any sustained advance in sound securities, thereby steadying prices. Local Financiers Are Cautious. Local bankers and brokers are extra cautious at this time in making pre- dictions for business and finance in 1930. They agree that the above fac- tors show sound reasoning, but condi- tions are considered too complicated right now to permit of very much forecasting. One leading local broker said yester- day that the trouble with the New York stock market seemed to be a bad attack of indigestion. He says that the flood of new securities put out during the year is still far from being digested. Another experienced broker asserted that predictions right now can be of little real value. “We must see the January and February reports,” he said, “to find out if business is holding its own, going ahead or slipping. Unti] these reports are out, it will be impos- sible to judge the trend,” he added. “While I think business will be a little slow for a short time, I confidently expect to see a revival as Spring dawns upon us,” said a local bank president. In his opinion one of the remarkable things about the decline in the stock market was that there was no crisis in money, industry and business gener- ally being found in strong financial po- &itions. Rapld Transit Eearnings Improve. ‘The Washington Rapid Transit Co. Teported to the Public Utilities Commis- sion yesterday that total transportation revenues in November amounted to rl.'lfl against $46,375 in November 928. Other operating revenues were 8853, compared with $694 a year ago. Operating expenses required $45,067, in comparison with $44,682 in the same period last year. After the deduction of all expenses the transit company re- ported a total net income for the month of $3,014, against $1523 in the cor- responding month & year ago, or a gain of $1,991. The Transit company reported total operating revenues for the first 11| months of this year as $49.566, com- pared with $47,070 in the similar period last g;.r, After the deduction of operating expenses operating revenues totaled $25,706, against a deficit in net oxln;;;l’na income last year in 11 months of g The company reported that 5,338,441 passengers were carried on the busses in 11 months this year, compared with 5,244,416 in the like period in 1928. Fair Trading on Exchange. Trading on the Washington Stock | PA Exchange was fairly active yesterday, but outstanding features were lacking. Capital Traction opened with a 10- share lot selling at 74%, and two other similar lots moving at 74!,. Potomac Electric Power 5, per cent ‘pretmed sold at 104 and closed at 10415, Twenty shares of National Savings & Trust Co, stock changed hands at 525, against the last previous sale at 540. Commercial National Co. preferred came out at 991, ex-dividend and five shares of Mergenthaler Linotype sold ex-dividend at 1067. A 20-share lot and a 5-share lot of Peoples Drug Stores preferred changed hands at 104!,. Merchants’ Transfer & Storage preferred appeared ex- dividend on the board at 9812 for five shares. In the bond department $1,000 Poto- mac_ Blectric Power 6s sold at 106%;. ‘Wasl n Gas 6s, series A, sold in $1,500, $300 and $200 transactions at par and 5. After call $200, $300 and $100 more of these bonds sold at the same price. The market closed with $500 Capital Traction 5s selling at 913,. The local market during the past few days has been gripped by & holiday lull. By the last of this week, however, interest and dividend payments are expected to help start a real January reinvestment demand for home se- curities, Phone Net Off in November. Chesapeake & Potomac Telephone operating revenues for the month of November were $714,768 with operating expenses of $535427. Taxes and un- collectible amounted to $47,254, making net operating income $132,087, which was a decrease of $23,734¢ over the same month last year. For the 11 months ending with No- vember, the company's operating rev- enues amounted to $7,611,989. Operat- ing expenses during this period were $5,611,704, making net operating reve- nues $2,000,285. Taxes and uncollectible for 11 months’ pericd were $542,989, making net operating income $1,457,296. Telephones in Washington increased 8.387 during the first 11 months of the year, making 158.747 in service at the close of business November 30. Capital expenditures for outside plant facilities and central office equipment added to the system of the Chesapeake & Potomac Telephone Co. in Washing- ton during the 11 months ended No- vember 30 amounted to $4,775,991. ‘Warehousing Dividend Voted. ‘The board of directors of the Termi- nal Refrigerating and Warehousing Cor- poration at a meeting Friday declared the regular semi-annual dividend of 3 per cent on the outstanding stock of the company. This means $1.50 per share on the par value of the stock of $50 ‘The dividend is payable on December 31 to stockholders of record December 28. Bank clearings in Washington for the week ended December 26 totaled $20,883,000, against $28,100,000 for the week ended December 19. This was a decline of 7.01 per cent compared with the corresponding week a year ago. The es indicate that holiday business during the weck was not quite up to the record of the same week in 1928. Clear- ings for the country as a whole were behind the previous week and 12 per cent under the same week last year. President Hoover has received word from the Department of Commerce, showing spotty conditions in Christmas trade in various parts of the country, ! but indicating that the total amount ‘of holiday business for the country was up to that of last year. District Jottings. : president of Pecples Drug Stores, Inc.. is optimistic regard- ing chain store business in 1930, He believes that stores that deal largely in everyday nceds and are conserva- tively managed will have a good year. Morris Plan Banks are completing M. G. Gibi ANCIAL, Financial District Looks for Changes After Turn of Year Special Dispatch to The Star. NEW YORK, December 28.— ‘These are the days when am- bitious young men keep a close eye on all news emanating from the New York Stock Exchange. ‘They are especially interested in partnership changes, for some item may concern them. Preliminary notices indicate there will be & record number of new faces in high places in the financial district after the turn of the year. Some old faces will be in smaller positions, with high- sounding titles, and not a few former clerks will see their names on the firm's door and stationery for the first time. Persons who have access to the secretaries’ offices of the various exchanges are much in demand, because of the possible advance information they may be able to obtain for interested parties. Most secretaries of exchanges, like private secretaries, are about as communicative as sphinxes— that's why they hold their jobs. HIGH MONEY RATES AFFECT BOND LIST Tax Selling Also Tends to Check Upward Movement in Market. Special Dispatch to The Star. NEW YORK, December 28.—Depress- ing influences, nearly all seasonal, kept the investment market quiet during the past week. Christmas day, coming in the middle of the week, was responsible for many new issues being held over until after the first of the New Year. High money rates incidental to the year end and the continuation of tax selling in & moderate degree checked advances. Even the long awalted railroad merger plan of the Interstate Commerce Com- mission, announced on Monday, failed to have the reflection expected in the second grade and more speculativs rail issues. Feeling on this point is that consummation is still too far off to have any noticeable effect on issues which might become involved. South American Issues. ‘While there was not the pressure against Argentine bonds that developed a week ago, & large number of other South American issues dropped heavily and along with them those of Central America. The selling of these issues was for the most part to establish losses and full advantage was taken of this where declines of as much as 20 to 30 points from the high of the year had occurred. There was the same kind of selling, though on a smaller scale, in the weaker credit issues of Europe. ‘The immediate effect on the bond market will be that of the January re- investment demand. With dividend and interest money amounting to over $1,- 100,000,000 next week, a certain pro- rtion of it is expected to go into nds and preferred stocks. Dealers have been buying up issues in th2 m: ket in anticipation of this dema There is no expectation, however, that it will come up to former proportions, as the competition with high-yielding common stocks is much stronger than in other years. New Offerings. New offerings totaled $8,468,000 com- red with $225,569,000 last week end and $27,104,000 in the same week of 1928. All the offerings were municipals. Last week's large amount, however, is thought more nearly to express the gauge of the investment market and the turn of the year is expected to bring out much new financing. It will be largely municipal, but there are also a number of rail equipment flo- tations in prospect, with much financ- ing incidental to President Hoover's improvement plan still more distant prospect. Lower money rates ace expected after January 1. The way 11 which recent offerings have been absorbed indicates how the new offerings will go. Under- writers report that practically all re- cent financing has been disposed of and they are ready for the start of a big year. Equities came back to life with year- end short covering and also helped to distract attention from bonds. Average Above Lows. As the week ends, the average of 40 domestic bonds is still nearly 215 points above the low cf the year, and the average of 10 foreign government bonds more than 2 points better than 1929's lowest level. During 1929, when call money was at its extreme height, building programs, real estate developments and indus- trial extensions were held up by lack of funds. But the first week's trading on the newly established New York Real Estate Securities Exchange brought out the fact that real estate bonds are now strongly held. Where the offi- clals of the new exchange had antici- pated a preponderance of selling orders, they have been unable to exe- cute the buying orders received. Actual offerings have been few, and sales con- cluded fewer still. This in itself is a fair estimate of the general investment EXCHANGE SEATS UP FROM $100 TO $74,000 Detroit Reports Remarkable Ad- vance in Prices Since 1915 Transfers Were Made. Bpecial Dispatch to The Star. DETROIT, December 28.—The price of seats on the Detroit Stock Exchange has increased from $100 in 1915 to $74,~ 000 1n 1929, officials of the exchange revealed today. Increasing to $250 in 1916, the price of memberships jumped to $2,500 in 1918 and increased gradually to $6.500 early in 1928. Then the real enhance- ment began and three more seats were sold in 1928 at prices ranging from $15.000 to $60.200. In 1929. William L. Davis & Co. and Charles B. Crouse & Co. pald $61,- 000 and §74,000, respectively, for mem- berships. WEEKLY BANK CLEARINGS NEW YORK, December 28 (#).—The weekly statement of the New York Clearing House shows: Total values and undivided profits, $18,749,500 increase. Total net demand deposits (average), $98,105,000, decrease. Time deposits (average), $7,601,000, de- crease. Clearing, week ending toda $5.917.488,979. Clearings, week endl: December 21, $7.560,704,372. Clearin this $1.201,426,849. [a gain of 16 per cent over the 1928 total. Savings deposits and certificate accounts in the majority of instances are greater than they were a year ago. Merle Thorpe, editor of Nation's Busi- the most prosperous year in their his- tary, states Robert O. Bonnell, president of ‘Morris Plan Bankers' Association. ‘The 1929 loan volume of these banks, operating in 145 citles, Mr. Bonneli states, will reach $210,000,000. This ness, and Gardner S§. Rogers, assistant manager of the civic development de- partment, will represent the chamber staff at the tenth annual session of the Western School for Commercial Secre: is taries at Stanford University July 13-19, THE SUNDAY STAR, WASHINGTON, D. C, DECEMBER 29, 1929—PART TWO. Week’s Financial High Lights RECORD BUSINESS | GAINS ENUMERATED Most Profitable Year Since World War Indicated in 1929 Survey. By the Associated Press. NEW YORK, December 28.—Despite the stock market slump which punctu- ated its closing months with some sug- gestion of gloom, 1929 will be found when the book is closed at midnight on December 31, the most profitable year for business since the great war. Likewise, the closing year has been the first boom year for industrial produc- tion since 1925. These facts are pointed out by the Business Week, which has just made public the results of a sur- vey covering the state of business and industry in the United States. “'Gross corporate income of all cor- porations,” the survey said, “probably will run between $150,000,000,000 and $160,000,000,000 and show an increase of 10 per cent over 1928. Net earnings should average an even larger increase, as much as 12 per cent, and probably will amount to $15,000,000,000. This does not mean that business as such was more profitable in itself, but that corporations did more business and made more money. It is likely that the average ratio of net profit to gross sales and capital investment was no larger than the normal 10 per cent. Speculative Activity. “In spite of the large role that fi- nancial and speculative activity played in the year 1929, larger industrial ac- tivity had an unquestionable part in the picture. This year will show the largest annual increase in production for any year since 1925. Although the general impression is that business has been going through a boom period con- tinuously since the war, the first half of 1929 will be the first time in three years to which the term can be accu- rately applied.” “Some industries made spectacular gains,” the report adds. ‘“These were chiefly those which had not recovered their normal rate of increase during 1928 following the recession in 1927. In general the industrial boom centered in the enormous expansion of the au- tomobile industry. Production of cars and trucks increased about 30 per cent this year. Truck production alone in- creased over 45 per cent. “This growth carried with it enormous increases in steel and other lines of production. Pig iron output rose over 14 per cent, steel ingot production about 12 per cent, copper about 14 per cent, steel castings 30 per cent, plate glass over 18 per cent, rubber-proofed fabrics over 32 per cent. The automobile op- timism brought with it a boom year in the oll industry, with increases in crude petroleum production of nearly 14 per cent, in gasoline of over 16 per cent. Textile Production. “The year was also an exceptionally big year for textile production as a whole. Wool consumption increased about 13 per cent, cotton consumption over 11 per cent, silk consumption over 9 per cent above the preceding year. “At the same time there were some industries which did not make such a good showing. Building construction and most of its related industries had 2 poor year. This slump was chiefly in residential building. Heavy engineer- ing construction increased 12 per cent, but general building contracts were about 12 per cent below 1928. Lumber production fell at least 5 per cent under the preceding year, flooring output alone from 15 to !lll’rPtr cent, cement nearly 3 per cent, ick about 18 per cent, radiators more than 20 per cent M‘dt plumbing fixtures about 13 per cent. “Bituminous coal production for the year increased about 7 per cent, while | anthracite output declined slightly. Zine and lead production showed rela- tively small increases, but the output of tin increased more than 18 per cent. Poor Crop Year, “It was a poor year for crops as a whole. Total agricultural production for the year will show a slight increase, but somewhat higher prices for some prod- ucts is expected to yield a small in- crease in total agricultural income. “It was unquestionably a good year for factory workers. Employment and pay rdlls for the year averaged 5 per cent or 6 per cent higher, and the cost of living ran a fraction below the pre- ceding year. “Despite the breaking of many records in industrial output, and the relatively higher level of general pur- chasing power among industrial work- ers and farmers, it is striking that the general volume of trade does not seem to have shown as great an increase for the year as industrial production. Pri- mary distribution as measured by the carloadings of other than bulk com- modities increased barely 3 per cent; total freight ton-mileage only 6 per cent. Wholesale trade showed an in- crease of only slightly over 3 cent and department store sales only 2 per cent. Export trade increased somewhat less than 3!, per cent, but imports showed a marked growth of approxi- mately 9 per cent. Business done by check in the 131 cities outside the speculative centers increased a little over 8 per cent. Postal receipts gained only 3 per cent, considerably less than the normal aver- age. It was a good year for life in- surance salesmen, the amount of new insurance written increasing 8 per cent; but along with building, real estate had a thin year, the total of transfers being 2 per cent less than last year. News- paper advertising showed a growth of between 5 per cent and 6 per cent, -ndt magazine advertising over 7 per cent. Banks Weather Storm. “The general average growth in trade during the year, reflecting mainly raw materials, was slightly lower than 1028, “The financlal record of the year,” the report concludes, “is wholly ‘with- out parallel—in the volume of security trading, the volume of security issues, the amount of credit used to float them, and the degree and intensity of the in- flation and collapse of security values. The figures are insignificantly large, but the outstanding fact to remember about the year from this point of view is that the banking system weathered this storm without breaking. This year put it to a test such as it never had be- fore, and it stood the test. This may remain—among all the other records of the year —the most important achievement of 1929, ROANOKE GROCERY CO. Epecial Dispatch to The Btar. NEW YORK, December 28.-—Direc- tors of Kroger Grocery & Baking Co. have authorized the issuance of 122,- 845 shares of common stock in ex- change for the business of H. W. Bracy & Co., McCarty Wholesale Grocery Co,, Inc.; Milgram Stores, Inc.; Piggly Wiggly Haynes, Inc.; Richards Bros., Roanoke Grocery & Milling Co., TAKEN OVER BY KROGER | bee Special Dispatch to The Btar. NEW YORK, December 28, 1929. Bonds (average of 40 fissues).... Foreign bonds (average of 10 issu Federal Reserve ratio Money rates in New York Call . Unfilled steel orders. Pig iron production. Building permits: Number of cities Amount umber ... Liabilities . Revenue car loadings: All commodities.......... Grain and grain products. Coal and coke gisceul.neous products. Live stock Stocks (average of 50 shares)......... 587 . $191,798,495 Commercial faflures (R. G. Dun & Co. reports): Numbe; 3 1,796 - $32,000,005 ‘Week of December 14, 1929. Pl’!;llflu! week. Year ago. ‘This Week. High. Low. 200.92 196.03 208.58 202.65 ‘This Week. Last Week. .24 86.66 . 4 105.56 ‘This Week. Last Week. Year Ago. 67.6 69.3 61.6 Last Week. High. Low. ‘This Week. Last Week. a5 t0 6 41 to 5 e 4% t0 5 4% to 5 Month of Month of Oct., 1929, Nov., 1928. 4.086.562 3,673,000 115,745 110,084 Month of N 3 584 587 $250,583,028 $268,499,135 1,822 1,838 $31,314,000 $40,600,000 Closing of the week’s market yester- day afternoon found the whalesale business in a satisfactory shape. Deal- ers had enjoyed fairly heavy trading during the Christmas holiday season and already had started in with the New Year holiday trading with every indication of a successful market to close out the year's business. Attractive displays of all foodstuffs characterized business during the clos- ing hours of the week's trading, en- abling retailers to obtain supplies of practically everything wanted for the week end and first of the coming week's ling. Meat packers were able to make most attractive displays of meats and meat products during the holiday sea- son, although there were not the great displays which characterized the mar- ket trade many years ago, when prize meats of various kinds were displayed and stands in Center Market attrac- tively decorated. Demand for Meats. Increased demands for meats were made during the closing hours of the week's market, consumers holding off from turkeys, having had their fill at Christmas time. Roasts of beef, pork, lamb and veal, steaks and chops and various other cuts of meats, prepared in a dozen and one different ways, ap- pealed to the average consumer. ‘There also were many persons, not tired of turkey, who made purchases of the king bird yesterday, while others will make such demands until the clos- ing of the market Tuesday night, the last day of the current year. Capons, chickens, keats and rabbits also prom- ise to be in demand for the New Year holiday. . At Municipal Fish Market the past week business was only fair, it was re- rted, as most consumers during the Rfixmy season hold back on routine food to enjoy their Christmas and New Year dinners to the fullest extent. ‘Wholesalers already have started checking up accounts to definitely de- termine the volume of business of 1929, and also to learn the financial results of their year's work. In numerous in- stances, it is stated, satisfactory results of the year's accounting is anticipated, while in a few instances, it is stated, the result possibly will not be so satis- factory. “Considering conditions,” remarked a dealer, “I think business will prove en- tirely satisfactory to most wholesalers. “There were times during the year,” he added, “when losses were encoun- tered, but it merely is a part of the business which is expected. Losses prob- ably were no heavier than usual. “When it is taken into consideration that heavy receipts of certain commod- ities cai all the way from foreign countries,” he concluded, “I think the average merchant can well say his losses were negligible. Prices at the close of the weck's market, substantially the same as prices quoted yesterday morning, were as follows: 3 4 Butter—One-pound prints, 411,a421%; tub, 4012841%;; store ked, 30a32. Eggs—Hennery, 55a58; fresh selected, 53a54; current receipts, 48a50. Poultry, alive—Turkeys, young, 32a 35; old toms, 27a28; Spring chickens, large, 28a30; medium, 28a30; broilers, 30a32; fowls, 27a28; Leghorns, 20a23; roosters, 20; ducks, 15a18. Dressed— Turkeys, young, 40a42; old, 35a36; Spring chickens, large, 35a36; medium, 35a36; broilers, 38a40; fowls, 32a34; Leghorns, 26a27; ducks, 28a30; roosters, 23a25; capons, 35a40; keats, 50a60. M —Beef, 20a22; veal, 26a28; lamb, 26a28; pork loins, 24a26; fresh hams, 25; fresh shoulders, H con, 25a26; smoked hams, 25; smoked shoulders, 20; lard, in bulk, 12l3; in ackages, 13%5. P U‘I‘e‘smck—cflve!, 14; lambs, 13a14. 1t is confidently hoped by dealers that there will be no early repetition of the inclement weather which prevailed during the heaviest of the Christmas shopping, realizing its almost certain interference with business. It was due to the inclement weather early the past week that business dropped off, especially with persons accustomed to doing their trading in person, forcing the use of telephones and consequent decreases in quantities of foodstuffs purchased. ‘While weather yesterday was damp and murky, there was not much inter- ference with business and dealers re- ported trading satisfactory. There was not the heavy receipts of poultry that had been anticipated, dealers said, bnt supplies were ample to meet dem#nd: The demand for small poultry was much greater than that for ducks, and rabbits, fairly plentiful, were in good demand. Dealers are looking for increased trading tomorow and Tuesday for the New Year holiday, and supplies of all commodities promise to be in excess of demands. Strawberries and rhubarb, fancy fruits of the season, met only a fair ‘demand, several other fruits, in- cluding apples, oranges, grapes, pears, Dlneln'{flespnlnd alligator pears, having n purchased in such large quantities for Christmas that consumers still have supplies on hand. Fruit Receipts. “It is natural to expect demands for o days after Christmas " observed a merchant, usually making holiday purchases in excess of requirements. “But tomorrow and esday,” he added, “should tell another story, and while increased business is expected, it as well as to J’roviae for the payment of stock dividends aggregating 5 T 5533' payable in common stock during At the time of purchase H. W. Bracy & Co. operated 41 grocery stores and 34 meat markets in and around Her- rin, Ill. Milgram Stores, Inc., operates 34 stores around Kansas City, Mo., while Piggly Wiggly Haynes, Inc., has two grocery stores in Columbus, Mo., and Richards Bros. operates two meat stores in Columbia, Mo., and a grocery and meat store in Jefferson City, Mo. The Roanoke Grocery & Milling Co. operates a_ wholesale grocery business and through a subsidiary has 90 stores in Virginia, West Vir, , Tennessee and North Carolina, is improbable that the demands will be a8 great as years ago, when the average lcxt.msumel' did an amount of entertain- Receipts of apples the past week were reported moderate. They showed An increase over recent weeks, however, but the demand was not heavy, making the market steady. Barrel stock sold from $4.50 to $9, bushel baskets of some varietes selling ‘as low as $1.50. Strawberries, as low as 40 cents early in the week, were offered {:flpr- day a8 high as 55 cents, receipts having decreased. Some of ordinary quality, partly green, sold as low as 35 and 40 cents yesterday. Light supplies orapges and. grapefruit the past of few WHOLESALE MARKETS ACTIVE AT END OF CHRISTMAS WEEK Dealers Report Good Business Done Dur-~ ing Annual Holiday Period—Gain in Trading Expected. days met a light demand, continuing the market steady. Florida oranges sold at $4.25 and $4.50, while California navels were of- fered around $6.25 and $5.50, few sell- l&zsohlgher. Grapefruit sold at $4 and Vegetable supplies continued inter- esting throughout the week, much of the supplies of spinach and kale com- ing from the Norfolk, Va., section, nearby and distant points. Spinach sold from $1.25 to $1.60 a bushel basket, some not in the best of condition sell- ing as low as $1. Kale was offered around $1.75 and $2 a barrel. ‘Tomatoes continued in light supPly most of the week, receipts the past few days showing an increase. Light re- ceipts of peppers, peas, lima beans, caulifiower and eggplant and very light receipts of squash were mentioned in yesterday's market reports. Moderate supplies of cabbage, celery, onions and potatoes were mentioned in the report, wl‘fll‘! sweet potatoes were in light re- celpt. A firm and steady condition of the egg market prevailed throughout the week. The market is easier than it was some time ago, however, and lower prices in the near future are antici- pated, while butter prices slightly changed during the week. Marine Products. Dealers in marine products are dis- playing an Interest in the shad and herring season, which opens January 1. First receipts of the fish probably will come from Florida, according to dealers, and it is expected they will be able to fill orders for consumers who want to ;;)éby & shad dinner the first day of 0. Later they will receive shipments of both shad and herring from points higher up the coast, heavier shipments from distant points prol y coming from North Carolina fishermen. Just when the fish will appear in the Poto- mac is problematical, weather condi- tions being the determining factor. shad of the season from observed a dealer, “usually reach here in splendid condition, pre- senting the appearance of having been caught in nearby waters. The same is true of the fish received from North Carolina. “But none is as good as the old Po- tomac stock,” he added, “there being something about the water in the Poto- mac to give them the best flavor imaginable.” Fruit and Vegetable Review. Yesterday's daily market report on fruits and vegetables (compiled by the Market News Service Bureau of Agri- cultural Economics), said: Apples—Supplies moderate; demand moderate, market steady. Barrels: Vir- ginia, U. 8. N 25 inches up, Black Twigs, 4.0024.25; U. 8. No. 1, 2% inches up, Yorks, 4.50a5.00. Boxes: Washing- ton, medium to large sizes, extra fancy, Delicious, 3.7524.00; Spitzenburgs, mostly 3.75; Staymans and Romes, mostly 3.00. Bushel baskets: Virginia, U. 8. No. 1, 2'¢ inches up, Yorks, 1.50a 1.65; Staymans, some fine quality, 2.00a 2.50; U. 8. No. 1, 23, inches up, Bald- wins, fair quality and condition, 1.50; Pennsylvania, U. 8. No. 1, 2'5 inches up, Grimes, 2.00. Cabbage—Supplies moderate; demand light, market dull. New York, 100- pound sacks, Danish type, 2.00; South Carolina, 1';-bushel hampers, pointed type, 1.7521.90; ordinary quality, 1.50. Celery—Supplies moderate; demand moderate, market steady. California, Y2 crates, individually washed and pre- cooled, 3.75; crates, in the rough, 5.50a 6.00, mostly 5.50; poorer low as 5.00. Lettuce—Supplies light; demand light, market slightly weaker; California and Arizona, crates, iceberg type, 4-5 dozen, 5.00a5.50; mostly around 5.00; Florida, 1';-bushel hampers, Big Boston type. fair quality, 2.50a3.00; poor quality and condition, low as 1.00. Onions—Supplies moderate: demand slow, market dull; few sales; Ohio, 100~ pound sacks, yellows, U. 8. No. 1, me- dium size, mostly 2.00. Potatoes—Supplies moderate; demand moderate, market firm; Maine, 150- pound sacks, Green Mountains, U. 8. No. 1, 4.60a4.65; 120-pound sacks, U. S. No. 1, 4.65a4.75; Pennsylvania, 150- pound sacks, round whites, U. 8. No. 1, 4.40. String beans—Supplies mcderate; de- mand moderate, market slightly strong- er; Florida, bushel hampers, green stringless, flat type, mostly around 3.00: 2 -bushel hampers, green, fair quality, .00. Cucumbers—Supplies light: light, market steady; Cuba, bushel crates, fancy, fair 5.00a5.50. Squash—Supplies very light: demand light, market firm; Florida, pepper crates; white, large size, 3.50, Eggplant—Supplies light; demand moderate, market steady; Cuba, pepper crates, fancy, 5.50. ‘Tomatoes—Supplies light: demand light, market steady; Ohio, 8-pound baskets, hothouse, medium size, 2.25a 2.50; repacked, threes, ripes, wrapped, fancy count, 3.00a3.50; chol .50a3.00. Spinach—Supplies moder: demand light, market steady: Texas, bushel baskets, Savoy type, 1.35a1.65: poorer quality and condition, low as 1.00. Caulifiower—Supplies light; demand light, market dull; Califo , pony crates, 2.25. Peppers — Supplies light; demand light, market slightly weaker; Florida, pepper crates, fancy, 4.50a5.00; ordinary condition, low as 3.00; choice, 3.50a4.00. Peas—Supplies light; demand light, market slightly weaker: California, 40- pound crates, and Mexico, 45-pound crates, 5.00a5. mostly 5.00. Lima beans—Supplies light; demand moderate, market slightly weaker; Cuba, bushel hampers, 5.00a5.50. Carrots—Supplies moderate; demand light, market steady; California and Texas, Western lettuce crates, bunched, 3.25a3.50; few, Texas, low as 3.00. Beets—Supplies light; demand light, market steady; Texas, Western lettuce crates, bunched, 3.25a3.50. Strawberries—Supplies light; demand light, market slightly stronger; Florida, demand square quality, IMARKET RESISTING BEARISH PRESSURE Attacks of Week Falil to Dis- fodge Great Amount of Stock. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, December 28.—A week which includes a national holiday and is the final one of the year cannot be expected to develop a strong market trend, or did the one closing today. It began with active selling of stocks and quite a large addition to the list of “new lows,” dwindled on Tuesday to the smallest proportion of any session in 1929, and as the pressure of tax sales and those of distressed accounts was lifted, it broadened out and shook off its earlier bearish aspects. It has not, however, given a definite clue to i what it may do after it enters the new year. Part of the influences that have been affecting it recently are temporary, such as higher rates for money and year end selling for tax purposes and to reduce inventories of securities. the other hand stocks cannot separate themselves from such concrete evidences of business recession as are manifest in the statistics of the iron and steel trade, the November reports of the rallroads and the quiet that has settled down over sections of the com- mercial world. Industry Balances Books. The next few weeks will be a period of balancing of books and casting up accounts for the year. After this has been completed it will be possible for the first time to approximate the dam- age done to business by the Wall Street panic and the extent to which the shrinkages in the last three months of 1929 offset the general appreciation in | earnings of the first nine months. In the earlier period analysis shows that the revenues of selected industrial cor- porations were about 27 per cent greater than in the first three quarters of 1928, those of public utilities nearly 14 per cent and of railroads 38 per cent. ‘With these gains as a back log and fundamental conditions so strong, there are comparatively few prominent se- curities whose markets should be af- fected in the future by the threat of dividend reductions. Market Ignores Rail Plan. ‘The most important development this week was the one that had least mar- ket affect; namely, the publication of a plan by the Interstate Commerce Com- mission for consolidating the railroads of the United States into 19 groups. The fact that its main features had been forecast earlier in the month did not explain the specculative indiffer~ ence to it, for the advance information had also' been received apathetically. Wall Street knew that the plan was suggestive and not compulsory; that it would be opposed in many directions and could not be put into effect until Congress had enacted new laws to govern proposed consolidations. More than this, its most vigorous critics were members of the body who formulated it and who, in a half-hearted way and prodded on by public opinion and the pressure of the administration, had thrown together a series of mergers that lnvl!e‘ bitter contests and serve no_economic purpose. Some systems are to be robbed of their favorite offspring; others are to have incompatible tr mates, while @ third group gets lines that take it far beyond its own territory and into sections of the country whose entire economic status is different from that in which it now operates. Some of the allocations are so weird that one won- ders if ‘the commission did not find itself in its planning with a number of systems that about fitted nowhere and so played the child's game of pin- ning the tail on the donkey. Absurdities of the Scheme. Some of the absurdities of the scheme are the linking up of the Norfolk & Western and the Seaboard Air Line with the Wabash; the allocation of the Lackawanna to the Nickel Plate, which already controls the Erie; the extension of the Chicago & Northwestern to the Gulf of Mexico through the proposed acquisition of the Chicago & Eastern Tllinois and Mobile & Ohio; the South- western expansion suggested for the Burlington rather than the logical ab- sorption by this system of lines between Colorado and California; a continua- tion of the Missouri Pacific westward from Kansas City to the Pacific Coast, instead of confining it to its natural territory in the Southwest, and the right-angled ally apportioned to the Union Pacific in the shape of the Kan- sas City Southern. ‘The Pennsylvania Rallroad has long cherished its control of the Norfolk & Western through stock ownership. If one reads financial records carefully, one will note the automatic response in the Norfolk & Western dividend rate to in- creases in the Pennsylvania dividend rate. Commissioner Porter remarks in his opinion that the Pennsylvania has declared that it “will not part with its ownership or control of these impor- tant end necessary elements of the pro- posed system (the Wabash, which in- cludes the Lehigh Valley and Norfolk & Western) until they are compelled, if ever, anywhere short of the last legal ditch. If this is the Pennsylvania road’s attitude toward the Lehigh Valley and Wabash. it is even more so to the Norfolk & Western, which was bought | cheap and pays a high return, whereas the other two roads were bought high end yielded comparatively little on the cost price. Situation of Northern Lines. The arrangement provided for the Great Northern and Northern Pacific includes their divorce from the Burling- ton, and as the commission has had be. fore it for nearly two years the applica- tion for merger of the Northern lines it 1s presumed that this petition is, in effect, granted if the petitioners waive their interest in the third member of the family. There is considerable doubt as to their willingness to do this. They certainly cannot do it without obtaining the consent of & majority of their shareholders, which have to be acquired after a dissolution of the present de- posit agreement, which does not commit these owners to a merger that cut them off from the rich legacy of the Bur- lington. Both from an investment and a traf- fic standpoint the Great Northern and Northern Pacific managements would hesitate long before conceding the Bur- lington to some other interest. It is & matter of record that the dividends on the Burlington stock held by these two properties go a long way toward Puylnl their fixed chages. It reduces 0 ‘about 31§ per cent the average cost of carrying Northern Pacific's bonded debt. What could this road obtain that .would compensate it more and establish it in such high credit, and Wwho is s0 wise as to be able to deter- mine the market value of the 820,000~ odd shares of Burlipgton capital stock which the Great Northern and the Northern Pacific each own and which have been deposited as collateral under their 1921 issues of general mortgage and refunding and improvment mort- n'g‘ bonds? e plan, however, has its logical as well as its unnatural proposals. Except from Commissioner Portsr, there has (Continued on Eighth Page.) pony refrigerators, Missionaries, mostly 60 per quart. Oranges—Supplies moderate; demand light, market steady: Fl , boxes, No. X large size, dium , 4.0024.25; ifornia, boxes, navels, 50; few light; demand !'l;rida, boxes, No. 3.5 medium size, 6.25a¢ Grapefruit—Suj 1ight, market ste: edium size, 4. FINANCIAL, Bond Brokers Get Benefit of Buying In Recent Markets Special Dispatch to The Star. NEW YORK, December 28.— New financing for the past week totaled only $8,500,000 in bonds, compared with $225,000,000 last week. Bond houses, however, are not worrying, for there are large amounts in prospect in the new year. “The dull week had its com- pensation,” one remarked, “in giving us a chance to recover from Christmas and get ready for New Year eve.” This year, he declared, it will be the employes of stock houses who will stay at home that evéntful evening, and the bond brokers who will support New York's night life. However, he admitted that he did hear there had been a little money made by stock traders in the past few days. “But it will never buy back all those ocean-going yachts and imported limousines ~ that were discarded in November,” he ded. REVIVAL IN MERGER AGTIVITIES SEEN New Year Expected to Wit- ness More Alignments of Corporations. Special Dispatch to The Star. NEW YORK, December 28.—Develop- ments in the last few weeks point strongly to another active perlod of igggolldluom during the first half of These will be most prominent nmong public utility companies, iron and steel manufacturers, investment trusts and trading corporations, aviation and amusement companies, interior banks, and, depending on the attitude of Con- gress, with the railroads. The recent amalgamation of a group of iron and steel properties in the Mid- dle West by the Eaton interests, the proposed merger of the Standard Steel Car and Osgood Bradley Car Co. with the Pullman Co., announced today, and the new relationships just established by Standard Gas & Electric and sug- gested for the Assoclated Gas and Elec- tric properties are evidences of the momentum this movement has already gained. Motives Different. ‘There is a difference, however, be- tween the motive for consolidations to- day and those that were almost daily features in financial news in the earlier part of the year. The latter were fre- quently found to be profitable for the promotors, in that they provided new securities of the sort that the public was then anxious to buy. Criticism has been made particularly of bank mergers that appeared to have little justification except to offer opportunity for broader speculation in the stocks of the institutions concerned. The same has been true of the unification of pub- lic utility holding companies which were projected and carried out on a grand scale and later played a part in the inflation of public utility securities. It is of inteerst to read a section of the recent Interstate Commerce Commis- sion plan for railroad consolidation, in which one of the commissioners frankly expressed the view that the only per- sons concerned in this were the finan- clal interests who “are likely to reap large profits from the mere process of putting the roads together.” Possibly this member of the commission had in mind the personal gains one of the promoters of the Southwestern group was alleged to have made out of this transaction. Merger Opportunities. Future consolidations, however, will grow out of the necessity for meeting unfavorable business conditions with the economies and .greater cfficiency that mergers of competitive concerns provide. sresent conditions in the aviation in- Fstry and in the amusement feld fur- nish many opportunities for bringing together under one control properties that have spread out too rapidly and have exhausted themselves by too rapid growth and at the same time have had too little nourishment in the way of net earnings. They are now going through the same trials that in previous years led to the weeding out of the Wweak members in the automobile in- dustry and the formation of a few strong trade units. The same conditions apply to the trading of finance companies which had & mushroom growth prior to the stock market panic. This has left numerous small companies in a weakened posi- tion where they are willing to turn over their assets to older and stronger or- ganizations in the same fleld. It is expected there will be a very pro- nounced reduction in the number of these corporations before the end of 1930. Economic conditions are also believed to be operating toward the merger of oll-producing and refining companies where the elements of overproduction of crude ofl and intense competition with foreign companies require greater co-ordination among the leading units in the American field. Stock Control Shifts, Some of the consolidations now be- ing considered are the direct effect of the transfer of control of stock holdings that took place when the market was in its panicky state in October and No- vember. Interests at that time that were carrying more of their own stock than they could protect awoke later to find that other interests with abun- dant resources had relieved them of a suwclen'. amount of stock to jeopardize their majority interest. So they have found it convenient to accept terms for consolidation which they had not the remotest idea of considering a few months ago. Instances of this have been reported in the public utility in- dustry, in the amusement fleld and with some of the smaller manufacturing companies and in the affairs of finance corporations, VIRGINIAN RAILWAY CO. EARNS $11.79 A SHARE Virginian Railway Co. reports for 11 months ended November 30, 1929, net income of $5,226,539 after taxes and charges, equivalent, after dividend re- quirements on 6 r cent preferred stock, to $11.79 a share on 312,715 shares of common stock. This com- E:rfla with $3,623,233, or $6.67 a share, same period of 1928. Statement for November and 11 months compares as "’";’,“: November grof Net operating Surplus after charge: 11 months gross. Net_operating SURRENDER OF TOBACCO BRANDS VOTED BY FIRM By the Associated Press. NEW YORK, December 28.—Stock- holders of the Union Tobacco Co. today voted to surrender to the American ‘Tobacco Co. certain brands leased from it. Seventy-one per cent of the out- standing stock was voted in favor of the proposal. None was voted against it. Under the plan the American To- bacco Co. walves damages of $1,000,000. The Union Tobacco Co. will out of the tobacco business, but wi con- tinued as an investment company in expectation of an appreciation in the stocks which 1t holds. 5 EASTMAN PUSHES CALENDAR CHANGE Rochester Capitalist Encour- aged by Progress of 13- Month Year Proposal. BY JOHN F. SINCLAIR. | | \ Special Dispatch to The Star. NEW YORK, December 28.—As the year closes we find George Eastman, Rochester, N. Y. philanthropist, as busy as ever for the 13-month calendar. He 1s greatly encouraged by the prog- ress made this year. “The first survey to determine public opinion regarding the 13-month cal- ;:‘Ev':e was th?b of the national eom; on calondar simplification, of which I am chafrman,” said Mr. te man. “It showed returns of over 80 per cent favorable among the 1,500 organizations which replied.” Fourteen nations have already formed national committees to extend the in~ rm;:;nnuon regarding calendar simplifi- cation. “You may be surprised,” continued Mr. Eastman, “when I tell you that some companies have been using this calendar for more than 30 years. More than 100 big corporations are rating on the 13-month basis for m:ge inter- for accounting. A survey of the United States Chamber of Commerce showed more than two-thirds in favor of the participation of the United States in an int<rnational conference to determine changes in the calendar.” “Then why is it not universally ac- cepted?” I asked him. “Largely because it has not been accepted by civil authorities. But with education I belleve its acceptance is only a matter of time. The sentiment for its ldnpflonulxl the world of busi- nes is undoubtedly very widespread and growing. “Apart from the objection alwa: raised to changing the status quo, most difficult problem encountered has been to arrange matters so that the new calendar will not disturb church calendars and church holidays of the various religious bodies. This matter has been carefully considered and ft s believed a satisfactory solution has been found.” Average Income. Did you receive your $745 last year? It makes no difference whether you happened to be a child or a grown-up p:rson. Every individual in the United States in 1928 was supposed to have had that much income. The average income of each family of five was estimated b; the National Bureau of Economic Re- search at $3,725. This is on the basis that the people of ths United States had an income during the year of $89, 000,000,000 — or ~ $29,000,000,000 more than the people had in 1918, and three times the amount of the national in- come in 1909. On the basis of a population in 1909 100,000,000—the average income in ar was $206. The “average salary” moved up from $976 20 years ago to $2,004 in 1927; while the “average wage” rose from $527 in 1909 to $1,205 20 years later. This national survey brings out the further fact that th: average working man’s earnings are, or were in 1928, “fmx glg;ver than they were at the peak o I The income of the American today is more than that of all m;: lcombined, although Europe has four jtim°s the population. We have very }It(le to kick about in the light of these figures. Problem of Distribution. The problem of business, certainly in the next few years, will concentrate not on production but on distribution. Most of ths business troubles of today con- cern themselves with the balanced ad- Justment of these two. Ethelbert Stewart, expert in the United States Bureau of Labor Statistics | since 1887, stated recently that the world is no longer concerned about the problem of production. For there is no such problem any more in modern civilization. “The race will not bring forth chil- | dren when it is convinced that there are no jobs for which the children m earn a living. But our whole oul can be changed when we come to un- derstand how to spread the productive capacity and output of our people.” The machine has increased produc- tion faster in many cases than effective demand for the product. “If we are going to make slaves of machinery. sooner or later the race will rebel against it,” continues this Gov- ernment expert. “Now let us change our point of view. Let us turn our whole educational system toward the teaching of what to do with leisure. Let us change our Ideas of remuneration. It will not do to reduce the worksheet to five days’ &-y for five days’ work at the old rate, for a six-day week pay must be made a basis of production if Wwe are to get anywhere in the effort to make man master of the machine.” And Mr. Stewart is looking forward to the day when America will exist without poverty, without drudgery, without fear of want—where man “has conquered the machine, and in which lelilxure and happiness are enjoyed by all Man will do that when he makes the machine his servant. Ailr Travel. ‘The Boeing System, operators of the Nation's two longest airways—"Chi ) San Francisco and Los Angeles, Seattle’ —completed 8,000,000 miles of flight this week. Of this number, 3,600, were flown at night on regular schedules. sickness is more im: than real,” says Harold Crary of the Co., who has been making & survey of the subject to learn how common air sickness has been. “Not 5 per cent of the passengers in air transport pl are subject to air sickness, and vousness is often a factor influ this small percentage. Proper vel - tion of cabins minimizes feature. Pilots, too, seek altitudes where the air is smoothest.” (Copyright, 1920, by North Ameri oo JREh Ameriongpevs- VIRGINIA APPLE CROP SMALLER THAN IN 1928 The 1929 Virginia commercial apple crop is placed at 3,100,000 barrels, com- pared with 3,700,000 barrels in' 1928, according to the Federal-State crop re- porting service. Carlot shipments of apples from Virginia, with an estimated total of 16,000 cars, compared with 20,« 282 cars shipped last season. Prices received by Virginia growers for this year's crop averaged higher than last year. and estimated value of crop is $9,765,000. which is about 5 per cent above value of 1928 crop, which was approximately 20 per cent larger in volume, GAIN TO BALTIMORE SEEN IN 1. C. C. RAIL PLANS Special Dispatch to The Star. BALTIMORE, December 28,— The gmposed ‘Wabash trunk line woy, ring back to Baltimore its former pre.e eminence in the grain markets of th' world and effect large increases in amount of coal and steel products lhlgfl ped through the port, according to R. Contee Rose, counsel for the Wabash also declared that Baltimore Rallway here. Mr. ‘would Enln added prominence as a with the Wabash system, in that it would be the shortest haul to tidewater for the system from the Middle West. SOUTHERN ORDERS CARS. NEW YORK, December 28 ().—The mthemm‘ Railway x:l has otflemrod 22 Fhem Steer G0 u