Evening Star Newspaper, February 2, 1930, Page 32

C—6 PRIGES ARE STEADY OND.C. EXCHANEE Thrift Grips Residents of the / Capital—Business Shows Signs of Improving. BY EDWARD C. STONE. Prices closed the week firm on the ‘Washington Stock Exchange and with & somewhat larger turnover. The final sale in Capital Traction was 10 shares at 89 after an earlier sale at 90%%. Potomac Electric Power 6 per cent pre- ferred wound up the week at 111 and the last sale in Peoples Drug Stores preferred was made at 104. Twenty-l‘lzvtelhll‘!:’ol ?ell Estate lortgage uaranty preferred came and Terminal using Refrigeration ration preferred moved at 50. One hundred shares of Firemen’s Insurance Co. sold at 41. ‘Twenty shares of Mergenthaler came out at 107. In the bond division, Wa: n Gas Cs, series A, sold at 102}5. There ‘was a $1,000 sale in Washington Rail- way & 4s at 8315 and another $1,000 transaction at 83: In the unlisted department 25 shares of Park Savings Bank stock changed hands at 78. The other unlisted securi- ties were called off and showed very few price changes from last week. One of the most important events in financial Washington during the coming Week is the annual meeting of the ‘Washington Gas ht Co. So far as can be learned in advance, Ord Preston Wwill be returned to the presidency when the directors organize for the year. At this time last year there was intense rivalry over control of the company, Row in the hands of outside interests. Fine Christmas Club Record. It is a remarkable record that the Christmas Sa: ’ Clubs in Washing- ton have made the ;I'hhe;urvport just lnn%u‘nced that % this year have grown sul mnm numbers and funds sub- scribed was received with great satis- bankers. Records of past performances are highly interest- i:fiq':he figures since 1925 being as l FINANCIAL I [ | RESALEPRCEBIL | . RRress EWing CLARENCE A. ASPINWALL, ‘Who has just been re-elected president of the Security Storage Co. The n nual to the stockholders, pre: sented during the past week, showed an excellent business in 192! NEW BOND ISSUES 10 BE READY SOON Railroad Offerings Head List of Securities Planned in Near Future. NEW YORK, February 1.—From the standpoint of price improvement the past week has been negative in the in- vestment market. ‘There has been some marking down THE SUNDAY STAR, WASHINGTON, D. C, FEBRUARY 2 1930_PART ON ARDLSESINTERET Measure Designed to Aid Re- tailers by Restoring Lib- erty of Contract. —_— BY J. C. ROYLE. in drastic to many merchandising. This DOW been favorably re- ported by the House committee on in- terstate and forelgn commerce, would restore liberty of contract between pro- ducers of marked or branded commodities and retailers to the effect that meu;am.;xmfo, :'fl.l not resell the commodity except at t - fated by the produces, " Price SHPU This has been & bone of contention between producers and distributors. to this have come the chain stores and department stores, which handle many articles other than those branded or trade marked. Some of these distribu-~ tors have followed & policy of selling marked or branded articles below the price fixed by the manufacturer in order to attract custorers who would in their vllslt to the store purchase other arti- cles. Question of Profit. ‘The question of profit on the branded articles in many cases was not a fac- tor. In some Instances, such articles have been sold at below cost to the dis- tributor. In these cases the latter sim- ply charged up the loss to sales promo- tion or advertising expense. The practice was the cause of the bitter trade war which has raged in the retail cigarette lines, Chain gro ceries, department stores, drug stores and cigar store chains have shed prices until in some instances the amount recelved was less than cost of the article. The manufacturers of the better known brands of cigarettes fixed the wholesale ‘rflu at $6.40 a thousand. Retailers in New York City have sold these brands as low as $3.95 a thousand, a loss, if both figures are correct, of 32:2 l‘ thousand. - long as the manufacturers receive $6.40 a quund they are not affected, but_the. distributors, who would not or Amount Subscribed. | of municipals, some small declines in | could not cut their profit margins close 91,430 Thus it will be seen years the number of accounts has Jjumped from under 50,000 to well toward 100,000. At the same time the amount subscribed has increased by leaps and bounds from $3,00,000 to $7,772,273. It is only natural that banks from gwll over the country have written to 7,772,273 Christmas clubs vertising committee, announced the re- ceipt of a great many inquiries. & consequence, world trade relations should be more satisfactory. ‘The farm situation is in a somewhat Hand-to-mouth buying to be an important factor in keeping trade on a fairly even keel. But of more sig- nificance than all these factors is the outstanding issues affected by new ones brought out at attractive levels and some restlessness on the part of the in- vesting public due to the small yield of high-grade bonds. This latter factor is evidenced in & point decline in the aver- age price of 10 of the highest types of loans. The week saw the cessation, to a large degree, of the transferring from out- standing bonds to new issues. Most of the issues left on the shelves of dealers have been distributed. There is still into some distance off as yet the large amount of new still in prospect. New Bond Issues. New bond issues totaled about $130,- ,000, against $79,394,000 last week. with the total of $305,- Tecent week. One interest- t the end of January renewed tendency toward . The Republic Iron & accomplished without o8 financing in by the & St. the Western; numerous equipment issues. The latter are incidental to activity amon; equipment manufacturers, which is present on an upward swing. Francisco proposes to float a $60,000,- 000 loan for the at of purc] pgl‘rgou hasing creased firmness stocks ruption in the general upward move-|tne week had its direct effect on the ment. Franklin Bank Looks Ahead. The Franklin National Bank, in if February ‘the income of the people of the United States will ch $95,000,000,000 in 1929 when the totals have beerr as- sembled. Accumulating data covering business rations in 1929 reveal a notable list of new records established during the year, despite the drop in general activity which came in the closing months. Outstanding among the new marks reported are: Automobile output, 23 per cent above the best previous year; steel production, up 10 per cent; bank debits, 7 per cent; retail trade, 3 per cent; electricity output, 12 per cent; ness profits, 19 per cent. Pigures comphied by the Federal Re- serve Bank bond market in a substantiall range ts | 20d other b ess outlook, predicts that ?tr bonus features. In an indirect way, the earnings of the them grade curb exchanges are currently at their highest levels for the year, and an ave below 50 or, in basis. higher of prices for convertible issues bonds having stock warrants bonds that are dependent on utting out. For instance, 10 of theplnwes! bon ds listed on the stock and erage of 10 points above their low levels of this same month. This, of course, points to speculative operations. this group are bonds selling other words, on a re- In the list of foreign dollar bonds, price more than five points low levels touched early in ‘This is probably attributa- serles of data give the aggregate of the | ble to buying for foreign account. Nation’s business as 4 per cent larger One thing that has helped bonds, to or under the cost price, have com- plained bitterly. The same situation ex- ists in a score of trade-marked and na- tionally advertised articles. Representative Clyde Kelly of Pitts- is the sponsor of the bill just favorably reported by the House com- that in seven | bonds, and declines ranging from % to | Mittee. Mr. Kelly said today: 2 points in United States Government v “The action of the interstate and for- commerce committee in favorably reporting the Capper-Kelly fair trade bill is mtfly!nt to all believers of fair competition in business. It is proof of the justice of the contention urged through many years that predatory to find out what makes the | evidence that some of the recent offer- | Price-cutters shail not be permitted to destroy standard quality goods and in- . | dependent _ distributors through cut- throat practices. There can be no doubt as to final success in the effort to se- cure a square deal to independent Amer- ican business.” Measure Meets Opposition. Distributors who o the measure declare that no one the right to determine for any American the price at which he shall sell what he owns. In connection with this phase of the argument, the report of the House com- mittee concludes: “And finally, and perhaps most im- ?unlnl for the public welfare, the ef- fect of this bill would be to put the small local dealers more nearly on a generally and properly recognized that the gradual extinction of small inde- pendent dealers would be a loss to countless ‘communities throughout Nation and so to the Nation itself. A small independent dealer, who is identi- fied with the community where his store exists, and who is active in its life as a citizen and advantageous to that community than & mere selling agency of a foreign con- (Copyright, 1930.) £ " &) WHEAT PRICES GAIN ON ACREAGE REPORT Advances at Liverpool Reflected in Further Recovery at Chicago. By the Associated Press. CHICAGO, February 1—Wheat rose in price here today to 4 cents above yes- terday's bottom figures. The rally was largely due to sharp advances in wheat quotations at Liverpool, where higher prices on wheat offerings from Argen- tina were a factor and where some im- fe | it is interesting to note that a group of | provement of European continental de- sales, 11 per cent, and busi- |10 low-grade foreign bonds is at an|mand for wheat was r average bove the of New York covering 161 | the month. eported. au- thoritative unofficial estimate issued in Chicago today indicated 1.1 per cent reduction of World’s Winter wheat acre- age, compared with a year ago, ‘Wheat closed unsettled, 1} to 1%a in 1929 than in 1928, the previous high | and is no doubt the reason why high-[1% = bushel higher than yesterday's year, and lvpm’xzignlmly 15 per cent e the 1923-1 average. -b;z)w great will be the extent of the current recession from this high level of activity, and its probable duration, are questions vv':xk:ht still occupy the reground of interest. ‘oAmmmmnry of the general situation as it presents itself at the close of the first month tends to confirm President Hoover's view that 1930 will prove a average year, with business hold- ing its own, with some exceptions in the first six months, and possibly mov- ing to some new marks in the last six months. Gleaned in Financial District. i shington cleared $22,890,000 WOYK‘ m‘l‘:fl $27,018,000 last week, which is a dem'"m"{g%" from the orresponding week . o mrglolmen& at Washington Chapter, American Institute of Banking, for the second semester have reached 240, making the number of bankers in all classes for the year 625. This will be increased during the next few days, enrollments closing February 10. The chapter students will be taken on an educational tour through the offices of the Chesapeake & Potomac Telephone Co. next Wednesday evening. ‘More than 2,400 employes of Childs Co. purchased the company’s common stock at $56 a share under the install- ment purchase plan expiring February 1, accord! to L. E. Buswell, treasurer of the company. Childs Co. has about 000 employes. mmmre 'PI.!yl last-minute rush to sub- scribe, several hundred additional sub- seriptions being received on the closing grade, issues have not declined as they may well have been expected to do in the face of so many new offerings of- fered at discounts, is the general de- cline of commodity prices the world over. To the man who holds bonds and has, consequently, a fixed income, this lowering of commodity prices, of rents, and everything else, is equiva- lent to an increase in sal at the same time it means smaller dividends to the owner of equities and smaller profits business for himself. Reductions in the prices of muncipal finish. Corn closed 1%ad% to 3 up, oats 1, to %a% advanced, and provi- sions showing gains ranging from a shade to 1 By the Associated Press. Brokers' loans... Federal Reserve system ratio. Holdings (United States) Securities . | Call money rate. price | Time money rate. Commercial paper WHOLESALE TRAD Week’s Financial High Lights ‘This week. Last week. Same week '29, $3,345,000 $5, 78.3% ,341,000 ,550,000 5% 69.4% $476,662 2,975,215 433,223 9,686,773 863,191 2,661,650 $201,7m1 2,667,184 820,634 12,665,347 ,663,100 25,608,150 $52,414,500 $476,536 T%-1%,7, 5Y-siae ING DECLINES 41%-4% 4%-5% AS RESULT OF HEAVY SNOWS Dealers at D. C. Market Look Forward to Clearing Weather—Commodity Rcceipts Good. Anticipating a probable early clear- ing of snow from the city streets and country roads, which should mean a boosting of business, dealers in the wholesale district heaved a sigh of relief when the week’s market closed “It was strictly a week of unpleasant weather conditions,” was remarked by a wholesaler, “and such conditions were trading. never known to help trading. “There are many retailers who sim- ply will not drive through snow and slush to make purchases unless it is bsolutely necessary to do 50,” he add- ed, “probably depending upon the saies | pe of canned foods to take the place of uncanned commodities.” Just what weather conditions will pre- vail at the opening of the approac] week’s market is problematical. Should the streets be sloppy, dealers anticipate quiet trading, but if the snow has cleared away a different condition is anticipated. “Prompt work on the part of District authorities to clear the streets of snow was ted,” commented a dealer. “Similar storms many years 280 bably would have meant an entirely different state of affairs. Effects of Storm. ported of exceptionally fine quality, but not much in demand. Florida and California tomatoes have not been particularly plentiful the past month and many of them were small and not very much in demand. Prices were not cheap. Lima beans, always a good seller, were received from Flor- ida the past few days, but only in small quantities. They sold around $8 a hamper, retailers selling them at $1.25 a quart. “When consumers are asked $1.25 for a quart of the beans,” observed e re- taller, “they seem to think they are b ing robbed. “I'm willing to admit the price is very high,” the dealer added, “but the retailer very little more than breaks even at that price.” Stormy conditions in the Norfolk, Va., hood the past . | prising results in the “Years ago,” the merchant addcd, | geql “a snowstorm of any magnitude meant a terrible drawback to merchants, but with the advent of motor trucks and improved street - cleaning apparatus things are different, and business does not suffer so much.” Only & slight decrease in receipts of certain commodities the past few days resulted from the storm. Son;-aa m;um of try, eggs and farm produce from )‘l‘:’fllullnd and Virginia, especially those living far distant from State roads and boulevards, were delayed or prevented from reaching here on schedule time. “But railroad trains and steamboats continued to run,” observed a dealer, “and the two public utilitles could have landed any quantity of commodities wanted, and on short notice. ‘ “The day for a storm of a few days’ duration serlously lnumxpt_!nl busi- ness,” he added, “has passed. ‘While conditions during the week were not wholly satisfactory, according to merchants in the wholesale district, they were not wholly unsatisfactory. In the commission house district the cold weather demanded the taking of extra tions against losses as a result of ;mnn:. It became necessary for the removal of most supplies of fruits and vegetables indoors or to places where canvas pro- tections prevented freezing. Merchants were given such ample warning of the approach of the freezing weather that they were able to avoid losses to any considerable extent. Retail Demand. Yesterday morning there was the usual week end demand for commod- ities for the retail trade registered. Re- tallers were on hand bright and early, some wanting supplies for their Satur- day breakfast trade, while others ap- peared later in the day for supplies for trade later in the day and to have enough left over for the begininng of business tomorrow. ‘There was no heavy boosting of prices during the week because of the appear- ance of the,snow, dealers reported, prices of most commodities continuing during the week without much change. Principal interest, according to mer- chants, was in the egg market. It had been expected that prices would reach a much lower market by the close of the week, but the appearance of snow probably kept them as high as they ‘were reported at the close of the week’s market. “Prices have been due for a decided drop the past month,” was the sugges- tion of a wholesaler, “and such a drop is bound to come before long.” Dropping of the wholesale prices was followed by cheaper retail prices, al- though in some instances high prices for specially selected hennery st still prevail. Prices of commodities at the close of the week's market were re- ported by dealers as follows: Butter—One - pound prints, 42a43; tub, 41a42; store packed, 25a30. Eggs—Hennery, 38a39; fresh selected, 38a39; current receipts, 36a37. Poultry, e—Turkeys, young, 32a 33; old, 27a: Spring chickens, large, . | 28a30; medium, 28a30: broilers, 32a33; Mi lary, while | }ay OA to the man who is in| A% RY, issues were blamed partly on the Chi- | 3T cago situation, which came to a crisis during the week. However, the Sani- tary District was able to borrow enough —at a high rate of interest— to pay the coupons on its bonds, which are due shortly. The market for foreign loans has gone ahead day by day. French, Bel- glan, Japanese and British dollar credits were outstandingly strong. South Amer- ican issues gained a little, although they are still a g way behind the rest of this section in their recovery from last year’s low level. affected by the anounce- gold conversion office may shortly be reopened by President Irigoyen, and also by the report that an attempt is to be made to re-establish the peso. i (Copyright, 1930.) o INVESTMENT BANKERS COTTON IS HIGHER ON TRADE BUYING Week End Covering Movement Also Aids Market—Close Is Steady. 10.82 By the Associated Press. NEW YORK, February 1.—The cot- ton market was higher today on week ELECT GOVERNORS Special Dispatch to The Sta: day. Childs common closed at 62%; on !hey stock exchange yesterday. —_——— GERMAN FIRM GRANTED $32,500,000 BANK LOAN By the Associated Press. NEW YORK, February 1.—A loan of approximately $32,500,000 for Siemens & Halske of Germany, parent company of the Siemens electrical equlpl:ll::"r manufacturing group, was annoul tnd-‘; by Dllk)‘n, Read & Co. The issue is to be in long-term particpating de- bentures, which are to be blicly of- fered early next week. Wall Street un- derstands, however, that the General Electric Co. is to take virtually the entire issue, giving the American con- terest in the largest electri- O o Wy M & Halske ludes & $24,000f 4ssue in 1922 and & $12,000,000 loan in ” CHICAGO, February 1.—Election of three governors to fill vaca on the board of governors of the Investment 4 'od:. by ;!rowbfld‘a c':?' laway, prul.dm{ ‘The new govern: ors are Frank McNair, Harris Trust and Savings Bank, ; Ralph For- don, Guardian Detroit Co., Inc., De- troit, and Canton O'Donnell, O'Donnell- Owen & Co., Denver. | Takes Up Bond Issue. RICHMOND, Va., February 1 (Spe- cial).—After all bids had been turned down because they did not offer enough, ‘Wistar H. Embrey became the pur- chaser of $50,000 of Fredericksburg, Va,, city bonds. Mr. Embrey is a citizen of Fredericksburg and former police )ultaee. but is not in the banking or bond business. Embrey bought the bonds at face value at an interest rate of 4% per end covering and trade buying accom- panied by talk of a firmer technical position and encouraged by the some- what steadier tone of Liverpool. May contracts sold up to 16.66, making & net advance of 23 points and & recovery of 29 points from the low level of yes- terday, but reacted slightly under lizing and closed at 16.59. The general market closed steady at net advances of 12 to 15 points. Futures closed st to 15 points May, 16.508 October, 17. 17.05; spot steady: December, 16.50. ch . May July Octobes December PENDER DIVIDEND., Directors of David Pender Grocery Co., which has many stores in Virginia, have declared regular quarterly div- ive di idend of 87 hfi the class A uofi.m :mn”x to of xecord February ag, Leghorns, 28; fowls, 28a30; roosters, 20; ducks, 15218. Dressed—Turkeys, young, 36a38; old, 32a33; Spring chicke 35a 37; broilers, 38a40; Leghorns, 36; fowls, 30a32; roosters, 22a23; capons, 35a40; du‘c‘u. 28a30; kkeau. 50a60. smol 27; smoked shoulders, 22; bacon, 2! lard, in bulk, 12%,; in packages, 13%. ves, 17; lambs, 13. growers in Belgium, Cuba, California, Florida and Texas are sup- plying quantities of fresh fruits and vegetables to local dealers, hot house products from States in the North and West are supplying show vegetables, chiefly tomatoes, cucumbers and mush- rooms. Some of the hot house plants from which supplies are being received are located at Terre Haute, Ind.; Ash- tabula, Ohio; the Kenneth Square bor‘l;ood Pennsylvania and appears almost next to sible that the large show vegetable can be observed a E impos- Taised only a few inches from | Sales prices, nce, but the California product is far superior to that from Mexico.” Included in the list of vegetables of- fered the retail trade during the week were onions, cabbage, celery, lettuce, eggplant, both varieties of potatoes, string beans, caulifiower, carrots, beets and okra. ery scarce and high early in ul‘:ft . we::g, vve:et ne;lved !: larger quantities past two days an so0ld at lower prices. Early in the week they were 50 scarce that a flat price of 75 cents a quart was demanded, but in- creased receipts resulted in prices drop- ping to 60 and 65 cents. Oranges and Grapefruit. Oranges and grapefruit continued in moderate receipts, pineapples appearing in large quantities and dealers also had Alligator pears in light receipt; plentiful supplies of apples and cranberries and grapes and pears in quantities sufficient to meet demands. Stormy weather the past week af- fected business at Municipal Fish Mar- ket and scattered wholesale dealers in marine products, Dealers had fairly large quantities of fresh fish and plenti- ful supplies of frozen fish to meet de- mands of retailers. They also had oysters in quantities sufficiently large to meet demands. “In other words,” remarked a dealer, “patrons of the Municipal Fish Market were able to get all that was necessary to_supply their wants.” Turkey receipts continue fairly heavy, raisers, it is stated, shipping stock heid bnck!!ml;l“ ger i:fl.ltmnA h:flrdlayy sea- son for ces. good demand for the turkeys were registered throughout the week, dealers reported, and prices were what dealers termed reasonable to cheap. Other varieties of poultry also were received in quantities sufficiently heavy to meet demands, although they did not continue quite so heavy during the short ?.'?:'E"n‘.".?,"‘m' ipts, mmmunug:mm 3 not very much affected by the storm. 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 (Continued on Seventh Page.) —_—— STEEL OPERATIONS SHOW BIG ADVANCE Plants in Various Sections Resume Activity—Buying Orders Are Heavy. Special Dispatch to The Star. CLEVELAND, February 1.—Steel- works operations have expanded for the fourth consecutive week since the turn of the year, now approximating 75 per cent, or within 10 points of last Janu- ary, says Iron Trade Review, Cleveland. Because the month opened inauspi- clously, Januas roduction statistics will not a Illr’ x ot i | March-apen Automotive requirements, while spotty, are enlarging rapidly, with a nlrmngt far behind 1920 now in prospect. Pro- ducers of raflroad track material al- ren?' are at & 90 per cent gait. Car builders' specifications practically match last year's. Building steel needs, espe- clally for bridges, are opening up. Of major outlets for nnug:a .mr only pipe fails to participate in general im: DA Gemind. broad, lemane lens, producers are price sthinton n b sen B Al nd. -finished steel, cold finished steel bars, rail steel nnguhoestflpt;ofllmnl‘m reduction in wages is threate: mills whose union scale is based upon but the industry is bent on a deep covering of snow from time to | Maintaining wages. time during the Winter.” Another big week in railroad buying The dealer explained how the vines | has been recorded. Chesapeake & Ohio are trained overhead, and the cucum- bers are very large. The cucumbers are put through a washing before being packed for shipment, it is stated, to prevent spotting. Boxes of two dozen of the vegetable the past few days s0ld arol $5 and $6. Other Vegetable Prices. Receipts of hot house tomatoes the week have not been yery heavy, g as was the case with the cucumbers. Mushrooms con- tinued plentiful and cheap, however, receipts having been fairly heavy most of the current Winter season. Yester- day they were offered at from 85 cents to $1.10 a basket of three pounds. Another product of the hot house attracting attention is rhubarb. Re- ceipts the past month, not exception- ally heavy, were reported by alers as the best stock ever offered in the local market. It came in small boxes of ximately five pounds and found fiws’d«. Small quantities of polk , another hot house product, were ihe pesb onth. It XA s and affiliated lines, having awarded 105 locomotives and 55 separate tenders are to close shortly on 11,350 freight cars. Chicago, Milwaukee, St. Paul & Pa- cific has placed 2,300 freight cars and has 750 on inquiry. Louisville & Nash- ville is out for 1,800, while the Seaboard Alr Line has doubled 1,000. Miscellaneous awards past week totaled 308. Additional m::llu distributed by the New York Two subway sections at New York re- %uiu 18,000 tons of structural material, ids a mnmmmun-bnm huns 12,000 tons, w] two contem- plated bridges at Buffalo are estimated at 18,000 tons. A river tunnel at New York calls for 36,000 tons of cast iron plate sections. Steelmaking operations are up 5 points at , to 80 per cent. Since January 1 four blast furnaces have been added there. Plzm:ul?h mills are u) &“'m“"!;"w":n’“': T2, Birmibeham 15 o 3 and Bl:flhl‘ off & l?.;ll.flg to 55. ration subsidiaries this DeU Qe BEDIDAY STOCKS DISCOUNT GAINS IN INDUSTRY Market Stages Broad Recov- ery During Week as Trade Conditions Improve, BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, February 1.—Whether business has improved on the heels of a rising stock market, or whether stocks d in sympathy with more Tavorable. Teports from. the ‘industriai world is not so important as the fact that both trade and securities this week e shown itive recovery. h‘;ndlvldu.l p:"&cks must still go up erably to gather in the slack in g:{:;'g: thltynccul'l‘ed during December. On'the average, however, industrial is- sues on Priday advanced through the high average of December 9, which is of importance in a technical interpre- tation of the stock market’s trend. The veckx has ':éflea::: not n;xly bez; ter prices for s 3 & volume of teading d_have been consid- lactory to commission houses two and three years ago. One after another of the important share groups have been supported and pro- moted, such as the steels, copper, ‘motors, public utilities, electrical manu-~ facturing - and even the indifferent olls. Out of this has come a recov- ery which amounts to an average of nearly 70 points in the industrial and public utility divisions of the market, compared with the minimum prices of last November. Put in another form, this is to say that whereas these stocks were off an average of 50 per cent last Autumn from their high prices of the year, the shrinkage from that level today is only 30 per cent. Steel Earnings Encouraging. ‘There have been & number of de- velopments to which the stock market could not fail to give respectful atten- . The one that had most im- ided those weeks in 1920 when the iron and steel industry was at the lowest ebb since 1922. Ob- viously, the momentum of earlier months had much to do with the sur- shown by this company quarter, and if the precedents of other years are worth anything as a guide, the March quar- ter, in which the steel industry is hav- ing a rapid comeback, will' be less favorable than that just presented. However, earning three times its cur- rent dividend rate of $7 share on its common stock, which supplements the equally good statement of the Bethlehem Steel Corporation, the United States Steel Corporation continues to show the vitality that has attracted so many hundreds of thousands of in- vestors to its securitfes. As an indi- cation that the steel industry is far from sick, one independent producer ::‘-’:lkhbll:lhed the l:lw on its and another increased its during the week. i Encouragement. has been given the advices from Wumnmnnon t:{ 8aln in employment, which means nothing more than that industry is picking up; by the ability of the cop- per producers to maintain an 18-cent rate for metal though other commodi- tles are falling; by the sharp contrac- ton in crude oil production, and by the evidence of more active buying in the automobile industry, as well as by agencies identified with the construce tion of buildings and of ships. Money Situation Favorable. mQ.ué:m u:‘;undlmu::m in their value as expanding 1ndlu¢k:g:‘ are kfli:umteh.t h-ve":df peared weel money - kets of the world. For the first né:e in u;om yu? :all rene a per cent, which is of particular significance as rate was established at the month end, when the | off in January. the ralls | had demsnds normally are on a ris scale. Bankers' acceptances also hlu:'g been lowered. The position of the Fed- eral Reserve steadily grows better as member banks reduce their borrowings, which are now 65 per cent less than :mg"nb‘t the thmhlln 1929 and 2s low as the; ve u‘fn::“ i Al 24 been in Te is an insistent demand in some quarters for a reduction in the Mz‘onl Reserve unt rate in New York to ;.x:‘e;mc‘enm E bualnle‘n is to go on ex- , such a icy would nq Justified. B i The reduction in loans on securities continues at a substantial weekly pace, being helped along by rising prices for stocks which permit borrower and lend- er to cancel their contracts to mutual advantage. There is still, however, a Breat mass of unmarketable securities in the portfolio of the banks h- out the country. One of the explana- tions of the weakness in prices of grain and cotton is that interior banks have lhromulwh uqn. 103 ‘!:gprm;e their o:gndmon uidation of commodities for which the) “frozen” condition. of loans on securities. Weakness in Commodities. The situation in commodities is un- satisfactory. Temporarily, there has been a slight recovery in the commodity index. Conspicuous weakness, however, has developed in many quarters out of overproduction and a falling off in both domestic and foreign demand for manu- factured goods. The condition in wheat and in other farm products, as well as in cotton, has attracted attention in Wall -t.ne't %’::el by Sl 1;: eco- nomic ance ane possible po- litical ns. If this were a rg:- dmc‘t:;,ynur '.h::-"would obvi b: muc] itical tion and argumen based on the poor performance of the major mrmln n-:vtl:': ‘This p?ilc“m ludl "w & reopening o war of price fixing. A collateral feature {)f falling prices of farm products is the bearing this may have on railroad rates in the modern congressional adaptation of rates to the going prices for such prod- ucts. The railroads, always sensitive to in- dustrial currents, had a poor month in November, & poorer one in December, and, judging from the carloading fig- ures, their were still running ‘This would explain to some extent the relatively small recov- ery in the prices of railroad stocks to which has taken place in public utility and industrial issues. et el 18 5 2,50 years o o clently ldmhll“t:::; e u?en'.l.n‘ expenses to gross earning of 714 per cent, which the director of the Bureau of Railway Economics states is the lowest since 1917, and with a re- turn on property investment, in spite of the decreases of November and De- cember, of Dearly § per-amt o With less than 4% pey esnd about the same Illi:l =5—the banner year f Gov In m of interaational finance the s event this week was the reduction 3 per cent in the redis- count rate of the Bank of France. This to come soon, but was put forward '.e,flhr than anticipated as ;l ‘n;:nnu ent & further movems gold lntomt;e overflowing vaults of loans on Priday were | IS | F ANCIALI | Again Heads Bank JOHN B. LARNER ‘Was among the Washington financiers to office at the recent annual As head of the Washington Loan & Trust Co. for many years, has made a brilliant financial record. He is a director in other corporations and closely connected with many im- portant civic interests, RETURN OF PUBLIC TOMARKET 15 SEEN Broker’s Review Finds Ample Buying Power Indicated in Month’s Activities. Special Dispateh to The Star. NEW YORK, February 1.—The fact RESTRICTION IN OIL PRODUCTION URGED Further Conservation of Out- put Declared Necessary as Industry Aid. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, February 1.—“To clear up the situation in the ofl industry, more drastic restrictive measures in the oil fields must be worked out this year, either voluntarily or arbitrarily,” said an oil leader in New York this week. The year 1929 broke the record in that the production of crude oil in the United States for the first time in history surpassed 1,000,000,000 barrels— 12 per cent more than the 1928 regord. This in spite of the fact that some 10,000,000 barrels of crude oil was in by different proration agree- ments, World ol production in 1929 was 1,460,000,000 irrels. So the United States produced more than two-thirds of the world total. The year closed with total oil stocks on hand of 530,000,000 barrels—a new high record. Sufficient to supply American requirements for seven or eight months, So today, the United States, produc~ ing 2,600,000 barrels daily, is far in the lead in ofl production, followed by Venezuela, Russia, Persia, Mexico, Rumania, Dutch East Indles, Colombia and Peru, in the order named. Venezuela, second on the list, has a production of but 13 per cent of that of the United States. Labor and Management. Just before Thomas E. Mitten, the great Philadelphia transportation genius, was drowned & few months ago on his estate near Philadelphia, he declared that the huge industrial units in the making were in danger of losing their conception of the labor problem as active management is further removed from the worker, Sald Mr, Mitte: +1—We must give the worker a full volce, equal to that of the that values have been able to present | )¢ such a firm front, in the face of reali- zation by bankers and cthers, indicates the existence of ample buying power, says Henry Clews & Co, " The month of January has witnessed the disposal of nearly $400,000,000 of new issues, and this taken in conjunction with an esti- mated reduction of holdings by banks in the sum of $250,000,000, shows that the capacity of individuals and invest- ment institutions to absorb securities is . ‘The question ho"hal‘r possible that w] they have uring the month of Janu- g "o, Rk e, & pe uj actual condition of the mmmfi::: and the extent to which thelr business customers call upon them for commercial accommodation.’ With the Pederal Reserve system freely ab- sorbing Government obligations and re- leasing credit when needed, at very this investment is of such a nature that will give the worker so great an influence in management that Amer- mmma it in lm":hrflmfl s men pa kK Since his death, the principles which tinued by moderate rates, there need be no doubt is that any further liquidation will be limited to actual requirements. Failure to reduce the Bank of England rate has been due, it is believed, entirely to the recently rather softer tendency of sterling, which has deferred the ex- g:c!ed action. In the opinion of local nking authorities, there is no reason why the reduction in the reserve rate been e: ted for some time st should be made to wait upon action Great- Britain, and a lowering of it accordingly thought likely as a factor in the early future. Mergers and Readjustments. Announcement of the terms of the large steel merger which has been pro- vided for, through the consolidation of the Republic Iron & Steel Co., the Cen- tral Alloy Steel Corporation, Doner Steel Co. and others, brings to a close egotiations which have been in prog- ress for some time, and holds out to stockholders the prospect of a profitable exchange of securities. Other consoli- dations and exchanges are also other mergers and consolidations are undfi: w‘ ih:nd it is likely unm 4s & result of Tearrangemen wi out of them, various issues wlu.:::& . Their word been law in the fleld of international e o ;_::flerent position in the open market. | old prospective settlement of the major troubles of the film industry through an agreement between the interests, centering around the Fox Film Co tion, 1is believed likely to avold possible embarrassments in other confirm all classes of in that division in the they now occupy. Weaker units are expected to have the opportunity of consolidating with the stronger upon terms which may prove advani us by putting various ugau * more assured than that which they have occupled heretofore. Al this process of rearrangement and readjustment is laying the foundation of a very much more vigo: and satisfactory market for coming months, and is to garded as a essential to tory conditions. be re- lece of foundation work rebuilding of satisfac- with a ratio of | Pe x Market Review and Outlook. Unquestionably there 1s an increase of f‘&"‘: interest in the stock market and in investment conditions generally. The tendency toward stronger prices which has of late made itself felt is responsible for some part of m#brmwm What has operated more to_hold back activity than anything else, has doubt~ less been the fact that many persons have questioned the extent of imme- diate prospect for a) tion. The optimistic view that is being taken by capable authorities with reference to the business outlook should dispel this attitude of mind, and it should be re- membered that, taking the market as & whole, the o&lzmunmel to buy which now present 'mselves are not likely to be repeated. While it is quite pos- sible profit-taking sales may be en- countered d then, this w] ivestment fl‘:lfln,l;n‘olflnl off displaying an over-cautious BUY CITY BONDS. RICHMOND, Va., Feb o cial) —The Chase “t‘.l:l" DL tion of New York and the sum- ers’ Bank & Trust co“ol Richmond, The present rate is | to 40 now quoted by the cen- u‘«niwp- and gives Prance & position of pre-eminence in the nnn::lng of the world's capital require- ments, The reduction is likely to be followed in the coming weeks l:‘:nur banks on the continent and by the Bank land. Out of this cheaper period money rates there should come greater industrial activity and also the ability in American market. can bond m‘:'r‘w';'m tluul -ln progress an ve un. from low in- come-producing securities, such as gov- ernments and *I " into the newer t 5 “It's not the number of years, but the fire within each individual that matters.” One of America’s bright spots at the . moment is the export of agricultural implements. The latest figures, those of December, show an increase of als most $3,000,000 over the exports of De- cember, 1928. Then they amounted to ' $9,426,000, while this last Decembes they totaled $12,273,000. ‘Tractors were largely the cause of the increase. Europe, with her credit easing, turns more and more to machinery to do her work. Its only & matter of time when her industrial machinery will be mod- ernized as it is in the United States and Canada, Then. will come the real contest for foreign trade. Honduras’ Business Depression. g coffee crop of Honduras to be good; but with low advances and crédits have been (Copyright, 1930, by North American Ne paper Alllance.) . TELEPHONE COMPANY REPORTS ON REVENUES Chesapeake & Potomhc Tele- The phone Co. of Baltimore City expended CHIOAGO DAIRY MARKET. CHICAGO, ; recel] s i nsettids saceipin 1151 paber et T e, 3% o 20 e 35788 seconds, 31 to 32. e < m Tece] B A cases; extra firsts, firsts, 35 to 3% exdinary bl