Evening Star Newspaper, January 5, 1930, Page 34

D. C. STORES GAIN INSALES 1S SHOW Fifth District Federal Re- serve Report Reveals In- crease Over No., 1928. BY EDWARD C. STONE. Retail trade in the fifth Federal re. Serve disiict showed some interestin, developments in November, according to Chairman W. W. Hoxton’s December review made public at Richmond yes- terday. The Reserve Bank review says “Reports from 30 representative de. partment stores scattered throughout the district showed sales averaging higher than sales in November last year, but_practically all of the gain was in Baltimore, Washington and ‘West Virginia stores. The Baltimore stores reported increases averaging 12.1 per cent. an exceptional increase in view of stock figures averaging 6.4 per cent less than those of a year ago. Some of the Washington stores did al most as well as the Baltimore stores, but two firms whigy reported lower | figures in November than in November, | 1928, brought Washington's average increase down to six-tenths of 1 per | cent. However, the record of the stores included in the other cities group is | quite unfavorable. 11 of the 15 stores ‘ing lower figures for November | Of the 4 stores in this group which gained in sales last month 3 were in West Virginia. Of the 30 re. ing stores in the district, 19 show total sales for the 11 months of | ll"-" than for the corresponding period year. ‘Stocks carried by the reporting stores are generally less this year. 20 of the 30 stores reporting lower selling values at the end of Noveml 1929, than on November 30, 1928. Most of the stores crhowed a seasonal increase 1 ear, pari and at the end of October. “The rate of stock turnover in the Afth district has been more rapid this | sear than during the first 11 months Bt e Bignty 1o ‘Averagin, s} y lower. Averaging | all m".m. together, stocks have | turned 2.969 times this year prior | November 30, in comparison with | 2.820 times in the corresponding | 1 months last year. “Collections in the district in Novem- ber averaged better than in either Oc- tober this year or November, 1928, and this is also true of the Baltimore stores, Rediscount in Seasonal Drop. Rediscounts for member banks h eld | by the Federal Raervel Bank of Ris - ich- clined during the month, from $72,131,- 000 on November 15 to $65,103,000 on December 15, but the decrease was less than the decline in rediscounts because of increased hoidings of Government securities. Federal Reserve note circulation of the Richmond Reserve Bank rose sea- between the middle of No- raised the cash reserves of the bank from $92,995,000 on November 15 to $102,422,000 on De- cember 15, increasing the ratio of cash Teserves to note and deposit liabilities combined from 58.89 per cent to 63.39 per cent. Less Reserve Credit in Use. A comparison of the principal items on the statement of the Federal Re- serve Bank of Richmond for December 15, 1929. with the figures for December 15, 1928, shows a somewhat smaller amount of reserve bank credit in use this year at the date given. Rediscount held by the Richmond bank rose $1,- 236,000, or 3.1 per cent, the increase being in country bank borrowing. In spite of larger holdings of redis- counts and Government securities this year, total earning assets of Richmond bank declined $4.474.000, or 6.4 per cent, between December 15 last year | and this, due to a reduction in’ the portfolio ‘of bankers' acceptances pur- chased in the open market. Reserve notes in circulation on De. cember 15, 1929, exceeded those in cir- & year earlier by $10,137,000, or 11.7 per cent, at least part of the in- | due to the introduction | Prediets Hard Work in 1930, Darwin P. Kingsley, president of the New York Life Insurance Co., has made some, interesting predictions for 1930. As he sees it: 2 “Men ride for a fall, t it, pick themselves up, feel for bm{:n bones— ;lr\lcn most esca) . nunruegély. mut- something about g n a fool —and go to work again. In six months of 1930 men will have done more rea} work than they did in all of 1929, and will soon be ready for the next ex- ce. “Nineteen - thirty will be what you make it. It will not be all easy 'l'hy;:'e are sore spots, but it will no longer be true that men are not incarcerated they are in a majority. The majority will be sane.” Booker Bonus 50 Per cent. Checks equivalent to 90 per cent of their annual salaries wprep:lstrihuled to employes of Y. E. Booker & Co., investment bankers, yesterday. These checks represent the amount due under the profit-sharing glun put into effect in 1926, when the firm was established. The proportion of the pro- fits which each individual receives is governed by his annual salary. The members of the firm are Y. E. Booker, George Hewitt Myers, Harry W. Finney and T. Baker Robinson. Bank Stocks More Active. Capital Traction 5s sold on the Washington Stock Exchange yvesterday at 91% and 92. Washington Railway & Electric 4s changed hands at 82 in quiet trading. District National Bank stock sold at 217, Amerjcan Security & Trust at 436 and National Savings & Trust Co. at 520. Local bank stocks have been more active in the past few days. Mergenthaler Linotype figured in a 20-share turnover at 106%. and the only other stock sale for the session was 20 shares of Real Estate Mortgage & Guaranty preferred at 7. Company to Expend $171,000,000. Prank L. Dame, president of the North American C;,) w'lhl;h has l::flh heavy hoidings in the Washington - way & Electric Co., has this to say regarding 1930° “The recent announcements by pub- Mc utility companies of plans to ex- pend larger sums on new construction in 1930 than in previous years point to increased employment and to higher rayrolls as well, but even these factors o no'. present a complete picture. Ex- penditires for all purposes ghould be 1aken into consideration in estimating ‘ FINANCIAL ' | | | GEORGE L. STARKEY, | President of the National Bank of Washington, recently completed 41 ears’ active service with this institu- jon. He started a climb the financial the top by hard worl NEW BOND ISSUES FND READYSALE reaching close ap- Investment Market Is Ex-| pected to Show Rapid Improvement. Special Dispatch to The Star. NEW YORK, January 4 —During the past week the investment market wound up the year 1929, depressed because of income tax selling, took a breathing spell on Wednesday, resumed Thursday in a dull trading session, and then forged ahead on Friday under a brisk reinvestment demand. The happenings of the last three sessions of the week, however, were merely the prelude, traders are con- vinced, to greater activity next week and for many weeks to come. As a matter of fact, bond houses had ! not anticipated a good market on Thursday and most of them have pre- pared their list of offerings to reinvest- ment buyers for publication on Monday. New Issues Sell Well. ‘Thus the break in the middle of the week served as a recoil for the in- evitable recovery from the low levels at which bonds still are selling. Money rates were still high after the holiday, but they eased on Friday. New issues continue to sell well and bond traders report that big offerings of the past two or three weeks are about two-thirds disposed of already. Many other large offerings are sched- uled for the early, weeks of this year, but this week was comparatively bar. ren, the only issue of importance being one for $60,000,000 of 6 per cent de- bentures cf the Insull Utility Invest- ments, Inc. This issue was offered at 9912 and carries both a convertible feature and stock warrants. It opened on the Rroduca securities market at around the offering price. During December there were $452,- 238,000 of bonds offered, as against $22,719,000 of new stock financing. Last year those figures were practically re- versed, with $279,910,000 of bonds, against $405,614,000 of stocks. During the same month $74,099,000 of bonds against $61,932,350 in ny other issues are due to be called in the next few weeks, including the Bethlehsm Steel 5'.s and 6s, on February 1. The amount available for | re-investment. immediately, therefore, | is considered to be well beiow requir:- ments, as conservative estimators place funds’ to be re-invested at close to $1,000,000,000. Baldwin Locomotive may possibly issue some bonds, as authority is to be asked to increase the company's funded debt. The last issue by this concern was put out in 1910. It consisted of $15000,000 of 5 per cents, of which $5,000,000 is still reserved and over half of the remainder has been retired. This bond has been quot:d close to the call price for a long time. Other large amounts expected to be issued consist_of rail equipments, municipals and industrials. Foreign Bonds Active. The market ended 1929 with an average for domestic bonds of 86.51, or off 340 on the year. This figure | is sbout 230 above the low level for Foreign bonds were active during the week and despite selling on Monday and Tuesday, some of the French, Bel- glan and Central European descrip- tions made headway. Although the advances in German and South Ameri- con descriptions, thes: are still at low levels because of the heavy losses in them during the October and November break. They had to withstand the heaviest onslaught of tax-selling. Argentina placed a $25,000,000 loan in London, which was construed as reason to support that country’s dollar credits, and other South Americans im- | proved with them. One of the tragedies of the invest- ment markst just now is the position | of the traction issues. These have, of | course, been weak for a long time, but just as the year ended a number of reports were issued which indicated that many of the traction bonds are in much worss shape than holders had thought. Some of these bonds are selling between 5 and 50, and for some there are no bids of any kind. An indication of how most of them are | situated is given in the example of a &mall strect railway in Pennsylvania. This company had a net balance, after charges, of $6,143 in 1927; a deficit of $4,159, after charges. in 1928. and a deficit of $10.056 in 1929. At the same | time real estate holdings which were | pledged to securs the bonds were as- | sessed at 5 cents om the dollar of bonds | issued. ! Attention was drawn to the weak condition of some sugar companv bonds by the request that holders of $4,132.- | 800 Punte Alegre Sugar Co. 15-vear | 7 per cent sinking fund ronvertibles deposit their debentures under ngree- ment to waive sinking fund require- ments for five vears. These bonds are | selling around 55';, after touching 88 during 1929. The company also has outstanding $4,000,000 in 6 per cent notes due October 1, 1930. Both are debentures and are equally direct ob- ligations of the company but are unse- cured by mortgage. Sugar Bonds Decline. The drastic declines in sugar bonds | caused by the tariff situation and ihe | attempt of the Cuban government to fix suear orices by legislation ai (Continued on Ninth Page. the spending power of the population in 1930. From this viewpoint the North American Co. and subsidiaries will ac- | tually spend during 1930 about $171,- Local Bank Increases Surplus. At a meeting of the board of direc- tors of the Bank of Commerce & Sav- ings late Friday it was voted to trans- fer $15000 to surplus. The capital stock has always 'n_ $100,000, the surplus has now been advanced from $150.000 to $165,000, and the undivided profits stand at about $30,000. Frank Owings, the jeashier, reported that 1929 had proved a particularly good year. 1 later sessions of the week saw some | THE SUNDAY BUSINESS TRENDS ARE SUMMARIZED Outlook in Important Lines| Shows Widely Diverging Prospects. Special Dispatch to The Star. NEW YORK, January 4—Current in- | {dications of the trend in various divi- sions of industry and trade are sum- marized by the Standard Statistics Co. | as follows: Agricultural Implements. — Domestic sales of agricultural implements and parts in the first six months of 1930 give promise of equaling the generally excellent returns of the corresponding period of last year. Afreraft.—Though present conditions are unsatisfactory, due to overproduc- tion in 1929, the longer term outlook holds promise of marked improvement, with a probable decrease in the number of companies manufacturing planes. Apparel—The outlook for the first half of 1930 is less favorable, from the standpoint both of sales volume and profits, than that for the corresponding period of 1929, Automobiles. — Unsatisfactory condi: tions still prevail. It will require, prob- ably, at least six months of the current year to work the industry into a healthy condition. * Automobile Parts.—Some seasonal ac- tivity is expected, but it will probably be of much smaller proportions than in the first six months of 1929. Automobile Tires.—Only the strong- est companies will be able to report fair profits in the first six months of this year, and even these returns are likely to be less satisfactory than in the corresponding months of 1929. Building Outlook Better. Building.—The outlook for 1930 as a whole is somewhat better, although the improved situation may not become evi- dent before the middle of the year. Chemicals.—Business is expected to continue moderately good in the first half of 1930. Coal.—Earnings will probably register a moderate reduction in the first half of 1930. Copper.—Returns in 1930 will hardly equal those of 1929, one of the most profitable years on record. Cotton Goods.—Until the fundamental problem of overproduction is solved and operating programs adjusted to the volumes justified by current demand there is little prospect for a return of profits to adequate levels. Electrical Equipment.—The 1930 out- look 's good. steady demand is as- sured from utilities and railroads. Fertilizers—Present prospects are fa- vorable and the*demand should be good with satisfactory Spring weather con- ditions. Lead.—Demand from most classes of consumers will probably be of small proportions during the next few months. Quotations should remain at about present levels. Leather and Shoes—Both tanneries and shoe plants should achieve better results in the current half year than in the same period of 1929. Machinery.—The industry has en- tered 1930 in excellent position. Orders carried over on the books are substan- tial and current demand is sizable. Meat Packing.—Incomes in the early months of 1930 should exceed moder- ately those of the same period in 1929. Office Equipment Forecast. 1930 is generally excellent, though re- turns are not expected to be maintained at the abnormally high pace set in 1929. per.—The newspaper division is gradually approaching an economically | sound basis. In other branches, except kraft, fairly satisfactory conditions should continue. Petroleum.—Production of crude dur- ing the early future months holds con- siderable promise of continued balance between supply and deman. In the fleld of refining and marketing, granting continuance of these more favorable operating conditions, further improve- ment should be evident in the first half | of the year. Radio.—Any constructive period of reorganization along sound economic lines can scarcely be started before Fall at the earliest. The tube industry has| been less vitally affected than the re- ceiver trade. Railroads.—Smaller relative decreases | in railroad traffic in the last few weeks | indicate that the traffic stre is no longer contracting, and _stabilization | may be looked for at about present | levels during the first half of 1930. Railroad Equipment.—Manufacturers | of freight units and locomotives have : unfilled ‘orders of sufficient proportions | to keep operations at a fair level for some months to come. The outlook for accessory manufacturers is improved | and that for tank car operators remains entirely favorable. | Rayon.—Long term outlook is still | favorable, since domestic production is | lagging behind potential demand. Retail Trade.—Outlook for the first | half of 1930, is less favorable than for 929. Best showings will probably be made by the 5-and-10-cent stores and the grocery chains. r.—Although prices for crude should ultimately strengthen, the out- look is not favorable for early improve- ment of quotations. Good Shipbuilding Year Seen. Shipbuilding.—With 20 important ves- sels under construction, the definite recommendation to add approximately 30 more means that business will be good for several years at least. Silk.—Present indications point to no material improvement in income in 1930. Steel.—Although the bottom for the downward movement is now approxi- | mated, any upward movement cannot | be expected until late Winter and prog- ress in this direction will probably be slow during the entire first half of 1930. Sugar.—With the current rate of con- sumption practically unchanged, and with small probability of expansion in the face of unfavorable business condi- tions, sustained strength in raw or re- fined will not be evident earlier than the second half of 1930. ‘Theaters.—The outlook is favorable with no decline in the enthusiasm of the public for sound movies evident or expected. ‘Tobacco.—Indications point to con- tinued prosperity for the manufacturers of leading brands of cigarettes during 1930. ‘Woolen Goods.—Output is still materi- ally in excess of demand, which has caused a steady reduction in prices of finished goods. BUILDING IN VIRGINIA BELOW 1928 MARK During November new construction contr c': to the extent of $3,673,500 were awarded in Virginia. The month's total increased 18 per cent over October | record, but was off 62 per cent from No- vember, 1928. October total was $3,111,700, and that for Novembor, 1928, $9,666,800. For the first 11 months new building and engineering work reached $54,045,- 800, compared with $107,255,300 for the like period of 1328. Y CLEARINGS. WEEKLY NEW YORK, Janual weekly statement of the clearing house shows: ‘Total surplus and undivided profits, $1,140,056,500, unchanged. ‘Total net demand deposits (average), $141,021.000, increase. Time deposits (average), $46,218,000 increase. Clearings week ending today, $8,106,- 279,044 Clearings week ending December 28, $5,017,488,979. T Clearings this day, $1,537,228,661. New York Office Equipment.—The outlook for | gf 4 (@) —The |2 STAR, WASHINGTON, D. C, JANUARY 3pecial Dispatch to The Star. NEW YORK, January 4, 1930. Stocks (average of 50 issues)........e. Bonds (average of 40 issues) Foreign bonds (average of 10 issues). Federal Reserve ratio.. Monef rates in New York Call . Unfilled steel orders Pig iron production Building permits: Number of cities. Amount Commercial failures (R. Number Liabilities Revenue car loadings: All commodities “ee Grain and grain products. Coal and coke. Forest products. 2 Miscellaneous products. Live stock. . G. Dun & Co. Week’s Financial High Lights 587 $191,798,495 ‘Week of December 21, 1929. Previous week. Year aj . 842483 23,24 9 High. Low. 201.19 200.92 196.03 ‘This Week. Last Week. . 8641 86.24 105.65 Last Week, Year Ago. 67.6 61.9 '{hh Week. Last Week. e 515 t0 6 L4% o5 4% to 5| Month of Month of Oct., 1929. Nov., 1928. 4,086,562 3,673,000 115,745 110,084 205.53 This Week, . 69.6 Month of Nov., 1929, 4,125,345 106,047 584 587 $250,583,028 $268,499,135 reports) : 1,791 1,838 $40,600,000 1§0. 1,822 $31,314,000 43,969 224,396 52,377 319,721 8,868 10,855 28,908 ,704 3 24,410 26,318 When the local wholesale market closed yesterday afternoon, satisfaction was expressed by most dealers because the holiday rush season was over. Sat- isfaction also was expressed with the week's business, the last of the old and first of the new year trading. It was stated by wholesalers that a fairly ac- tive market continued throughout the week, supplies held over for trading the first of the week being nothing more than normal. Poultry dealers were especially satis- fied with their holiday trading. There was some disappointment expressed dur- ing the Thanksgiving market because of heavy receipts and low prices when an- nouncement of a 39-cent market by chain stores meant a low price for the entire market. In some instances, howsver, efforts were made to continue a 50-cent mar- ket, and with some degree of succe:s, while in a number of instances prices dropped to as low as 35 cents. ‘Turkey Supplies. In a report of the Bureau of Eco- nomics, Department of Agriculture, treating with the question of iurkey supplies for the Christmas holiday sea- son, it was made to appear that the prediction late in November that the turkeys estimated to be put on the market for the Christmas rrade would be 38 per cent of the total crop. it hav- ing been expected that the supply would be augmented by the carryover on farms from the Thanksgiving holi- day season. It now appears that, due mostly to disappointing ying prices at coun- try dressing glnu. producers did not market all their available stock and that the carryover on farms after the holidays will be heavy,” was a portion the Government report submitted since the close of the holiday season. This is taken by dealers to sug- gest the possibility of increased re- ceipts of turkeys as long as there is any demand for them, and the demand, though not large late in the season. according to merchants, is likely to continue far into the Summer season. In the report of the Bureau of Eco- nomics, aiready mentioned, it is stated: “The demand for Christmas turkeys proved generally satisfactory. Although not as active as for the Thanksgiving season, when an exceptionally good consumer demand was noted, the usual seasonal business came to hand in | mostly all quarters. As a whole, stocks were cleared fairly well and in some quarters a shortage developed on fancy young stock and especially toms. “AS during the Thanksgiving season, the lower grades were neglected, and various concessions had to be made in order to move this class of goods. It is reported that dealers are attempting to move any surplus stocks over the New Year holiday, as prices are con- sidered too high for a isfactory storage deal. Thers will b> some carry- over, of course, but this will again con- sist mostly of small and second grade s. “Quality in general was fair. In some sections of the country quality was reported as not being up to the ‘Thanksgiving season standard due to reduced country prices, while most other sections reported quality up to the former market or even better. As was the rule during the Thanksgiving season, consumers again were inclined to buy the higher quality birds and neglect the second grade stock due to the comparatively low prices. ““This attitude on the part of the housewife mace for the carryover of lower grade goods and the shortage in a few quarters of fancy young stock. On the whole, the Christmas turkey market proved more satisfactory to the distributing trade and less isfac- tory to the producer than the Thanks- giving market, while the Thanksgiving deal was more satisfactory to the pro- ducer asd less satisfactory to the dis- tributing trade.” Vegetable Receipts. Increased receipts of chickens were mentioned in reports of poultry dealers ! yesterday afternoon, and still further increases next week are anticipated, and with the increases, lower prices are expected. Keats, ducks and geese | were received in fairly large quantities | the past week, while receipts of rab- ' bits from the West, South and nearby continued heavy. Receipts of new Florida cabbage and extra quality Idaho baking potatoes interested commission merchants and retallers yesterday. Cabbage received yesterday were the first receipts of the year and hampers of the vegetable found ready sale at $2.75. ‘The Idaho bakers, large and in per- fect condition, claimed much attention. A carload of the vegetable yesterday was of the 16-30-ounce size and readily brought $4 for 100-pound sacks. Strawberries and rhubarb, the for- mer from Florida and the latter from Canada, continued as the show fruits in the commission house district. Straw- berries have been unusually plentiful | ahe past week, prices going as low as 0 to 40 cents a box for choice fruit. Prices at the close of the week's mar- ket, the same as prices quoted yester- day, were as follows: Butter—One-pound prints, 39a40; tub, 38a39. Eggs—Hennery, 50a51; fresh selected, 48a50: curent receipts, 47a48. Poultry, alive—Turkeys, young, 32a35; old toms, 27a28; Spring chickens, large, 28a30; medium, 28a30; broilers, 30a32; fowls. 27a28; Leghorns. 20a23; roogters, 20; ducks, 15a18. Dressed—Turkeys, young, 40a42; old, 35a36; Sprihg chick- ens, large, 34a35; medium, 34a35; broil- ers, 38a40; fowls, 33a34; Leghorns, 26a cl 2i Toosters, 23a25; 160. veal, 26a28; pork loins, 24a26; fresh, ; fresh shoulders, 22; bacon, smoked hams, 25; smoked shoulders, 20; lard, in bulk, 1215; in WHOLESALE MARKET ACTIVE DURING HOLIDAY SEASON Merchants Express Satisfaction With Busi- ness Transacted—Poultry, Meat and Vegetable Receipts Are Good. packages, 1 Live stock—Calves, 15; bs, 13a14. Cheaper prices of butter and eggs and prospective cheaper prices of poultry | were interesting features of the week’s market, Receipts of eggs showed a steady increase throughout the week, according to reports, and prices grad- ually decreased. ‘The coming week,” sald a whole- saler, “should mean further increases in receipts of eggs and correspondingly lower prices. The market has been due for & drop for more than a month, but the decline started much later than had been anticipated.” Fish Season Opens. Opening of the shad and herring sea- son and increased catches of fish in creeks emptying into the Potomac River below Alexandria were interesting fea- tures of the week's business at Munici- pal Fish Market. The shad and her- ring from Florida presented the appear- ance of having been ocut of the water Al much shorter time than is required to| transport them here. Some few of the fish caught in near- by waters reached the market alive, but their being alive means no extra charges on part of dealers. Live carp always are in demand, however, and it was fish of this variety that were brought to the local market alive the past week. Other fish from the creeks included pike, yellow perch, catfish, a few eels and sand perch. Oyster receipts the past few days in- creased, dealers reported, and con- sumers registered demand for all re- ceipts. Shucked stock continued to sell at $2.30 and $2.60 a gallon, shell stock, according to size and quality, selling at a wide range of prices. Shell stock came from ail parts of the Chesapeake | Bay and tributaries and from points on | the ocean front of Maryland and Vir- | ginia, Commission merchants continued with attractive supplies of commodities throughout the week, receipts of hotn‘ fruits and vegetables claiming attention of retailers, and haulers on the farmers’ | line also had attractive supplies of v tables. There also were fairly heavy | supplies of apples from ths Shenandosh | Valley of Virginia, the fruit not espe- clally large, selling around $2 a bushel | basket. i Mocerate receipts of oranges and light | receipts of grapefruit were reported most of the week, both fruits being in demand. Tangerines, less plentiful, are | not so much in demand following the closs of the Christmas holiday season. Dealers continued to receive plentiful supplies of alligator pears, l‘rple.!. pears, grapes and persimmons, and reported a good demand for them. Cranberries, not so plentiful this season, continue in receipts heavy enough to meet demands, the demands not being as heavy ag dur- ing the holiday season. Vegetables from Mexico, Cuba, Cali- fornia and several States in the South continued plentiful throughout the week. They were of practically every varijety and proved attractive to retail- ers and consumers. Other Vegetables on Market. Broccoll, one of the more popular varieties of vegetables, was received in splendid condition and found ready sale. Peas, string beans and tomatoes | were among the vegetables in greatest demand, dealers reported, peas becom- ing so plentiful and cheap that re- tailers were able to sell them at two pounds for a quarter. ‘Tomatoes, product of Mexico, Cuba and Florida, were not so plentiful the past week, choicest stock bringing fairly high prices. Hot house stock, mostly from Ashtabula, Ohio, were of splendid quality and higher than- the outdoor- grown vegetable, eight-pound baskets selling from $1.50 to $2.50. Spinach, kale, turnips and parsnips continued plentiful and cheap, dealers reported, while several other varieties of vegetables were not so plentiful. Light receipts of lettuce, carrots and peppers and very light receipts of squash and beets were reported. Both varieties of potatoes, cabbage, onions and celery were reported in moderate supplies during the week. Fruit and Vegetable Review. Yesterday's daily market report on fruits and vegetables (complled by the Market News Service Bureau of Agri- cultural Economics) said: Sales to jobbers except where other- wise noted. Apples—Supplies moderate; demand light, market dull; barrels, no sales reported; boxes, few sales; Washington, medium to large size, extra fancy De- licious, 3.75; extra fancy Spitzenburgs, 3.5083.75; extra Romes, mostly around 3.00; baskets, few sales; Virginia, U. 2% inches up, Staymans, 1.75a2.00; U. 8. No. 1, 2!;.inches up, Yorks, 1.50; Grimes, 1.75a2.00; U. S. No. 1, 2% inches up, Grimes, fine qu ity and condition, 2.75a3.00. Cabbage—Supplies moderate; demand light, market steady; New York, 100- pound sacks. Danish type, 2.15a2.25; South Carolina, 1',-bushel hampers, flat type, 1.80a2.00; Florida, 1';-bushel hampers, pointed type, 2.65a2.75. Celery—Supplies moderate; demand light, market steady; California, crates, individually washed and pre-cooled, 6.00 26.25; half crates, individually washed and pre-cooled, 3.50a3.75; crates, in the rough, 5.00a5.50. Lettuce—Supplies light; demand light, market steady; Arizona, crates, Iceberg type, 4-5 dozen, mostly around 5.00; Florida, 1)3-bushel hampers, Big Bos- ton_type, fancy, 2.75a3.00; choice, 2.00. ‘Onions—Supplies moderate: demand light, market steady: Ohio and, New York, 100-pound sacks, yellows, ¥ s. No. 1, medium to large size, 2.15a2.25, some medium size low as 1.90; Colorado. 50-pound sacks, Valencia type, large size, 1.60a1.75; very large size, 2.00. Potatoes—Supplies moderate; demand light, market steady: Maine, 150-pound sacks, Green Mountains, U. 8. No. 1, mostly 4.75; Pennsylvania, 150-pound sacks, round whites, U. 8. No. 1, mostly 4.50. String beans—Supplies liberal; de- mand light, market dull; Florida, bushel hampers, green, stringless, 2.5082.75; few fine quality, 3.00. 1930—PART |to finance his commitments. Stocks | Federal Reserve system have reduced TWO. IRREGULAR STOCK MARKET FORECAST Business Developments in Next Few Months Expected to Govern Price Level. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 4.—From now on stocks will be governed more by ' business developments and tendencies than by internal market conditions. With trade in the next few months | of an uncertain character, we are likely | to witness irregular movements in se- | curities as professional cliques and the public _endeavor to get their bearings after the recent confusion, ‘There is a rather unanimous opinion that business will be slow in the first three or six l‘::on!]h.! of 1‘30 and gur poration earn! less satisfactory dur. ing that pertor than since the early E." of 1928. Enough evidence is at and to justify this belief. It is to be found in those flelds of industry im- mediately sensitive to a drop in the purchasing power of the country, such as the sharpest decline in iron and steel production last month since the | end of 1927, following unprecedented output from January to November; an abrupt gross decrease in raliroad ea ings in November and December, and | a falling off in both production and sales of automobiles and In articles of luxury. Utilities Maintain Earnings. Some dividends have been passed since the panic; but more have been increased. Weak spots are gradualiy being uncovered in speculative quarters that were not allowed to show them- selves in November. Receiverships are becoming more common. On the other hand there has not so far been any sign of reduced earnings among the public utilities; the December sales of the great mail order houses were from 12 to 28 rer cent above the previous year; retail stores throughout the coun- try reported some gain in holiday trade compared with 1929, and, with few ox- ceptions, the business of the chain stores has been and continues to be greatly in excess of the Winter sea- sons in the past. The amazing thing is that a depre- ciation in market values equivalent to the cost of the war to the United States should have had so little visible effect when it is remembered that it left its traces on the materfal affairs of a large portion of the moderately well-to-do and an even deeper one on those of great wealth, It is obviously a time for those with money to invest to proceed cautiously. Prices are so much below those that had become familiar during 18 months of rising markets that the temptation is to buy indiscriminately in anticipa- tion of another bull movement in stocks when business has readjusted itself to th: influences of paper or actual loss2s on securities. This urge is increased by the fact that there is now liberal com- pensation on capital invested in stocks. Numerous “yields” have been doubled. Instead of being carried at a sacrifice of interest “equities” today more than pay their way. Financing Costs Less. A year ago it was costing the | speculator between 10 and 12 per cent were returning on an average less than 3 per cent. At present the carrying charge is 6 per cent or under and the income ranges from that figure, or little below it, to 8 and 10 per cent. And | this applies to stocks whose dividends in the next three to six months are; sure to remain at their present levels. ‘The unknown quantities in the busi- ness situation, however, serve to temper the enthusiasm of the public and en- courage a rather healthy procrastina- tion in the matter of speculative en- gagements. The commonest advice that brokers are ing today to their cus- tomers is to “buy only on weak spots,” and to resist tendency to follow up the bulges. “In other words, they feel that there will be plenty of opportunity be- fore Spring to accumulate good stocks at what, for permanent investment, should be attractive prices, and that it would be wiser policy to pay higher figures later when the industrial out- look has become clearer than to ac- quire them when the country is groping | in the dark as to the immediate business | outlook. Abundance of Credit. | We have recently witnessed the greatest bull market in history and the | highest averags prices for industrial and public untlity shares on record coincident with the scverest money strain in 10 years. Now we have what | some people feel is an overdeflated market facing an era of very com- fortable money rates. The abundance of credit is primarily due to the releas: of funds from speculation. It also represents in no small degrees the lack of demand from business. One of the questions to be det:rmined in the next few months is whether the influence on good dividend paying com- mon stocks at comparatively cheap money will be greater than that of poor corporation reports in which earnings per share of stock will fall well bslow estimates which were the basis for purchases six months ago. It is quite probable that the first of these two factors may have the greater price effect, for the public has not by any means abandoned junior secur- itles. It will now, more than ever be- fore under similar conditions, go on buying stocks in preference to bonds | and take the risk of a temporary loss in earnings rather than for:go what it believes will be an eventual and sub- stantial recovery. This does not mean that fixed in- terest obligations and preferred stocks are not to benefit by the change in money conditions. It is difficult to see how they can avoid appreciation, with such a strong background as is being | built up for them. For the first time in nearly two years member banks in the their borrowings to a point where they can feel independent and no longer subjected to pressure from the board. It is anticipated that this month will | sce total rediscounts down to $500,000,- 000, representing a 45 per cent shrink- | age from the high level of the last| three years, \ Bank Deposits Expanding. | Bank deposits are increasing in the metropolitan centers at an astonishing | rate. The gains since November have been the greatest for any equal period known. The employment of these funds, and also of the liquid assets of corporations, of investment trusts and individuals, is & problem that will most likely be worked out in the market for short and long term securities. Some part of it will be absorbed into the new issues now being contracted for and becoming more visible as the month goes on. Then there is a certain amount of re- siliency which bonds should show after | being pressed down so far by year end | selling. This applies more to foreign than to domestic issues. The absence from the bond market of the thousands of interior banks, which formerly could be depended upon to take a liberal slice of every new ue, but which are now loaned to their limit on stock collateral of their clients, is one of the adverse factors in the investment situation. Investment Trust Exhibit. ‘The record of the. investment trusts and finance co ations for 19290 is now being exhibited. It includes that Eggplant — Supplies light; demand light, market steady; Cuba, pepper crates, 4.50a5.00; Florida, no sales re. port ed. ‘Tomatoes — ht; demand period when many of them had their first experience with falling prices. As ‘ FINANCIAL l Sees Fewer Mergers H. PARKER WILLIS, Former Washingtonian and now pro- fessor of economics at Columbia Uni- | versity, says that the natural tendency toward bank consolidatilons will be slower this year. He believes the out- look for 1930 in banking is a ‘airly sober one. The banks of the country re overloaded with loans and possess a good many investments of second- rate quality. The year should be a process of conservative clearing up and general sanitation, the economist as- | serts. RAILROAD STATUS | SDECLAREDG00D Few Companies Need Help, According to Statement of I. C. C. Official. Special Dispatch to The Star, NEW YORK, January 4.—Although | two weeks have elaps:d since the publication of the Interstate Commerce Commission's plan of railroad consoli~ dation, no official moves have yet been made by executives of the roads around which the 19 American groups center in the way of registering their ap- proval or disapproval of it. the Baltimore & Ohio and the Nickle Plate interests will confer on the plan, which favored both to a greater ex- tent than others in their own territory and followed out lines along which they have for some time been directing their energies. Indifference Noted. Outside of railroad circles there is a significant indifference to the general | g subject of railroad consolidations. This is not strange in view of the fact that leading members of the Interstate Com- merce Commission profess to see little value in it from the standpoint of economy and from that of rendering greater service to the public. Many railroad executives in private con- versation frankly state that they would prefer to maintain their present status rath:r than to be linked up with some other roads which they do not feel fit in with systems now successfully administered. In the attention that has been directed to the merger aspects of the | Interstate Commerce plan, th» strong commendation by the commission of existing railroad credit and transpor- | tation status has been overlooksd. To rallroad stockholders this should be extremely sstisfactory. On this sub- Jject Commissioner Eastman in his con- curring opinion said: “So far as service, operating effi- clency in general and ability to financ> on reasonable terms > concerned, the status of the railroads has been im- proving rapidly and steadily during the past few years and now appears to be better than ever before. This improvement has extended to the so- called weak lines.” McManamy's Statement. Commissioner McManamy went even further in boosting the condition of the r This is what he said: “Never have the railroads collectively or singly been in as good condition physically and financially as they are at present. The weak lines, that is, those which actually need help, can be counted on the fingers of one hand. Equipment is ample and our inspe tions show it to be in better condition than ever before and improvements are going steadily forward. Orders for new material and equipment are sufficient to cover anticipated needs. There has been no car shortage for more than five years. Net ton miles per mile of road per day, gross and net train loads, gross ton miles per train hour, net ton miles per car day, cars per train and other operating records by which efficiency is measured are all better ' than ever before recorded.” No Wall Street bull on railroad stocks could have listed a stronger collection of facts favorable to the carriers than ias this member of the commission, who has been at times considered one of its radical members and not favor- able to some policles which the trans- portation lines have advocated or put into effect. INVESTORS ON WATCH FOR SOUND BARGAINS Satisfactory Buying Demand Re- ported With Improvement in Business Reports. Special Dispatch to The Star. NEW YORK, January 4.—After a month of uncertain movements and doubt as to prospective developments, the year 1929 has closed under fairly favorable conditions and with a good outlook for the ensuing period. Very satisfactory buying demand, says James B. Clews, has made itself apparent on the part of real investors; and there has been at the same time a hopeful attitude among business au- thorities, which has furnished a good background for the belief that condi- tions during the new year will show a prosperous trend. This is a far better situation than had been predicted in many quarters only a short time ago. and it reflects the changing condition of opinion and indicates the great c pacity for recovery which American finance has always exhibited. At the opening of the new year most investors are now again looking care- fully into the question what securities offer valuable opportunities; and the general effort is that of laying the foundation for profits later on by pur- chasing issues which have before them & future of growth and development in value, due to the fact that they have been s0 materially liquidated. ‘The business condition as revealed by year end statements is unquestionably encouraging. FIRM SELLS PLANT. ‘The United Cigarette Machine Co. at group finance company stocks made sorry showing. Compared with the erage _decline in industrial and pre- (Continus Page.) (Continued gy Ninth Page.) Lynchburg, Va., has sold its branch plant at Dresden, Germany. Company will conee*-te its activities in Lvnch- burg, is expected, however, that shortly | CANADIAN BUSINESS RECESSION NOTED But Dominion Has Establish- ed Good Trade Recorc for 1929, | | i | l BY JOHN F. SINCLAIR. | Special Dispateh to The Star TORONTO, January 4.—Canada is having a business recession comparable | In degree to what is going on in the United States. Still her business rec~ ord in 1929 in most lines exceeded the figures for the year previous. Her construction figures set a new high record with a grand total ot $576,000000 last year, as against $472,000,000 for the preceding year. This is an increase of 22 1-10 per cent over 1926. Last year in construction, Toronto was considerably ahead of Montreal. Toronto’s figures were $80,042,000, as against $69,257,000 in Montreal. This is the record In the two most active e-nters of the Dominion, with Ontario leading in the provincial fields, followed by Quebec. British Columbia, Manitoba, Saskatchewan, Alberta, Nova, Scotia, and New Brunswick, in the order named. Smaller Crops Predicted. Canadian papers are giving promi- nent space to the prediction of Dr, Ralph E. Delury of the Dominion Ob~ servatory, a distinguished Canadian astronomer, who predicts smaller crops for 1930, lighter rainfall, greater dan- ger from lorest fires, fewer electric storms and increased fur production. | He declares the 11-year cycle for sun spots reached its peak in 1928. Prof. C. S. Chant of the University of To- ronto agrees with the Delury prophecy. To Canada plenty of rainfall means bigger and better crops. A smaller rainfall the reverse. In the year 1926 Canada produced 566,000,000 bushels of wheat, as against 293,000,000 last year. Also 452,000,000 bushels of oats were produced in the molst year of 1928, as against 280,000,000 in the dry year of 1929. The year 1928 also gave Canada 136,000,000 bushels of barley, as against 100,000,000 last year. Naturally Canada is very .much in- terested in the problem of wheth'r 1930 is to be wet or dry. ‘Wheat Fgures. Prof. W. T. Jackman, University of Toronto transportation expert, after a close study of the present wheat situ- ation, declar:s that for the week end- |ing December 6, 1929, there were 44,- 185,000 bushels of wheat in store at the head of the lake, while for the cor- responding weck of 1928 there were only 24.438,000 bushels. Also period August 1, 1929, to r 6, 1929, the total receipts of ail grains at. the head of the lakes were 95,653,000. Another straw to show a reason why | busin:ss is quict here. From August 1 to December 12, 1929, wheat ship- ments sent down from the lake head amounted to 81,000,000 bushels as against 217,000,000 a year ago. Not s0 | good. Naturally, the raflroads have suf- fered. The gross revenuss of the Canadian National in October and No- | vember were more than 20 per cent less iand for the Canadian Pacific more than 25 per cent less than for ths corre- sponding period of 1928. When the Argentine wheat is out of th> way late this month, Canada be- lieves Europ: will call upon her great supplv at the rate of 60,000,000 & months It is Dr. Jackman's bli:f that bacause of the cheaper water haul from | Vancouver to Britain than by all rail to St. Johns, that Vancouver will handle a very much larger percentage of the | cron of 1929 than ever before. Vancouv:r and Fort Churchill are | destined for big things, if the Western grain men have their way. | Infiuence of West. Is the West tting ready to rule | Canade in th> future? The appoint~ ment of Charle: A. Dunning, acting minister of railways and canals, to the most impertant. post of minister of finance in the Canadian government is a step in this direction. Mr. Dunning has been a leader in the Western co~ operative grain movement, as well as f)rcmler of Saskatchewan. He was born n England and went to Western Can- ada to work as a farmhand., so he knows the Western farm problems in- timately. His sympathy is all in this direction. He is recognized even by Eastern business leaders as an unusu- ally able and powerful political and industrial leader. He is a champion of the Hudson Bay route, by which a large part of the wheat grown in West- ern Canada will be sent by way of Churchill, on Hudson Bay, to Europe and thereby eliminate the long and more expensive rail haul to Montreal and St. Marys to Europe, “Distances between Churchill and Liverpool and Montreal and Liverpool are approximately the same, and the port of Churchill should take the same transportation rates from prairie points as Port Arthur and Fort William," said Mr. Dunning in discussing this prob- lem. “That leaves with the Hudson Bay route an advantage equal to the dis- tance between the head of the lakes and Montreal, roughly, 1,000 miles.” Western farmers are back of this and the government has promised its com- pletion by 1931. New Railways Minister. Another Western business leader who for 15 years has been active in the co- operative farm movement of the West has resigned o join the government as minister of railways and canals, He is T. A. Crearer of Winnipeg. He, too, is interested in the devolpment of the West and undoubtedly the emphasis in Canadian railroad construction while he is in power will be in the direction of building branch lines in different parts of the West. like his associate, Mr. ble, strong business alr” for politics. He has a wide following, not only in the rural section of the West but in the industrial centers as well. It is under- stood that the department of immi- gration will also be taken over by this Western leader as soon as arrangements can be made. With the shrewd Dunning at the head of the important finance department and the experienced Crearer at the head of the rallways and immigration, one needs no imagination to prophesy that the West is going to get its full share of government support while the King regime is in power. +Politics is much more intimately tied up with business in Canada than it is in the United States. And in the present order of things the large farm organizations working through their national leaders are no{ to be denled. (Copyright. 1929, North Americ: Alliance *rican Newspaper DEPOSITS IN BALTIMORE BANKS OFF IN MONTH Twelve mutual savings banks in Bal- timore had aggregate :epum amouni- ing to $187,526,332 at the close of busi- ness November 30, 1929, a lower figure than $189,687,177 on d!gofllt in the same banks on October 31 this year, but a higher amount than $186,045,629 on November 30, 1928. flfl{-eilllt regularly reporting member had time deposits totaling $233,107,000 on December 11, 1929, compared with $240,189.000 on November 13 this year and $238,138,000 on December 12, 1928. In most savings derfl.l'-l decline ;‘olml;wmtdn ‘thhh u;lnn. lue to holiday ying and other end-of-year payments, such as taxes, ete. R i When the Krupp interests of Ger- many recently curtailed their iron andd steel production they laid off 1,000 mew,