Evening Star Newspaper, February 16, 1930, Page 73

News Pages 1 to § of Markets FINANCIAL AND CLASSIFIED he Sunday Star " Part 6—12 Pages Classified Pages 6 to 11 Ads WASHINGTON, B €, SUNDAY MORNING, FEBRUARY 240,000,000 POOL - FORMED T0 CHECK " CRASH IN MARKET [ Much Less Than Total Was : Needed in Halting Stock Debacle. NATIONAL PRO;ERITY THREATENED BY BREAK Bankers' Journal Calls Attention to Service Rendered by Financial Giants. BY EDWARD C. STONE. { Details just brought to light regard- | ing the pool formed by six New York| banks to halt the collapse of prices in the last Wall street crash indicate that these institutions made $240,000,000 available for this purpose, or $40,000,000 each. Nowhere near the total amount pooled was used, however. The current American Bankers’ As- | sociation Journal considers that the greatest service such an immense bank- ing pool performed in seeking to end the stock panic was upon public imag- ination at that time. Some said that the bankers' pool has saved the Nation and was an example of high-minded patriotism, while others claimed it was an attempt to save specific assets. In a sense it was both, says the Jour- nal. The biggest asset the Nation has is Nation-wide prosperity, and the larger the institution the larger the as- set looms. Washington bankers believed &t the time of the break that the New York banks were not so much con- cerned over the market crash itself as| in the fierce destruction of real security values. Naturally, the bankers were in- terested in certain individual stocks, but the wholesale cutting of values was what they said they feared most of all. At such times ers are always called in or step in. In helping to stabilize the collapsing market the bankers did only What they were ex- pected to do in such an emergency, the Journal asserts. N. & W. Steamboat Officials. One of the most important annual meetings held here during the past week was that of the Norfolk & Wash- ington Steamboat Co. Among the offi- cers clected was Clarence F. Norment, ir., as president, while J. Allen Riordon ‘was .made general manager. Both are well known Washingtonians. Mr. Norment is probably the youngest steamship company president in the country. Born in Washington April 6, 1897, he is but 33 years of age. He was educated in Sidwell's Friends School and the Collegiate Institute, both of Washington, &nd later graduated from Lafayette College, Easton, Pa. He is director in the National Bank of Washington and the Norfolk & ‘Washington Steamboat "Co.; secretar; treasurer Norment, Smith & Fuller Co.; member Washington Real Estate Board and Washington Passenger Association. He has been associated with the steam- boat compary about 10 years as a di- rector and an official for about 5 years, first as secretary, later as vice presi- dent, and finally succeeding the late Charles J. Bell as president in the Fall of 1929. Mr. Norment's father has been very closely connected with the com- pany for nearly half a century. J. Allen Riordon, the general man- ager, has been connected with the Po- tomac River line for 29 years, unusually long service with any concern. Born in the National Capital January 27, 1882, he attended the public schools here and Business High School. Later he entered Georgetown Law School, taking the de- gree of LL. B, in 1904. His first connection with the steam- ship company was in 1901, when he be- came secretary to the general manager. He held this position through 1907, and from 1908 to 1912 was the company's general claim agent. In 1913 Mr. Rior- don was again promoted, being made auditor of the company, which position he held until his recent selection as general manager. Local Stock Market Steady. Prices were steady on the Wasmng-‘ ton Stock Exchange yesterday. Chevy Chase Dairy preferred sold at 105, up 5 points from the last sale. American Becurity & Trust Co. moved at 425, same as the last transfer, and Capital Traction sold at 88, up % of a point. Merhants Transfer & Storage com- mon came out at 109, in a 20-share turnover, and 10 shares of the pre- ferred changed hands at 99%;. In a very small turnover, Merganthaler Lino- type ended the week at 1083, 100 shares of National Mortgage & Investment preferred came out at 47, while Peo- ples Drug Stores preferred opened at 104%: and closed at 104. Potomac Electric Power 6 per cent preferred stock sold ex divided at 111, and 80 shares of Real Estate Mortgage & Guaranty preferred sold at 87. I[n the bond division Capital Traction 5s sold at 9513, and there were three $500 sales in Washington Gas 5s at 101 Btocks in the unlisted department showed practically no changes during the week. ‘The week’s business, as a whole, how- ever, revealed an upward trend in volume. Utility Probe to Be Resumed. The Federal Trade Commission will resume its investigation in connection with public utilities on February 18, when it will go into the financial phase of the industry. Officials of the Amer- ican Gas & Electric Co. will be the first 1o testify. The scope of the inquiry will include the study of financial methods of the industry. such as relations to separate companies or affiliated groups of op- erating, holding service or management companies. The commission has had field agents examining books of the utilities in their own offices since the investigation be- gan about two years ago. Among the concerns which the commission agents visited were the Standard Gas & Elec- tric Co., United Public Service Co., Electric Bond & Share Co., Eledtric Power & Light Corporation, American Power & Light Co., North American Co., Boutheastern Power & Light Co. :Ed the New England Power Associa- n. Heard in Financial District. A special committee of the Washing- ton Stock Exchange is looking for new %x:mu. which will be necessary when the American Security & Trust Co. starts building operations. While bids have been asked on a big annex which would reach as far as the Union Trust Building, no definite date has been fixed for starting construction. Selection of Luther E. Schreiner as chairman of the hotel committee for the next annual convention of the Dis- trict Bankers' Association will be most favorably received by local bankers. Mr Schreiner has already done some splen- did committee work for this organiza- ) 5 AYRES SEES SIGNS | B o] | TRADEDEPRESSION |Economist Says Business Decline Has Apparently Reached Bottom. RESUMPTION OF ACTIVITY | IN STEEL CENTERS CITED Expanding Auto Output and Bet- ter Stock Prices Cause Change | in Sentiment. | Special Dispatch to The Star. CLEVELAND, Ohio, February 15.— | The bottom of the business decline ap- pears to have been reached. The evi- dences of this are to be found in the {increase of activity in the iron and steel Iindus'.ry, in the rapidly expanding out- | put of the automobile industry, in the | notable improvement in business senti- |ment and in the increasing strength and activity of the securities markets, says the Business Bulletin of the Cleve- land Trust Co., edited by Col. Leonard P. Ayres. General business is still sub- normal, but conditions do not appear to | be getting worse in many lines or in | important ones, and they are certainly | improving in some that are fundament- ally significant. | _General business recovery may or | may not make rapid progress in the im- | mediate future, We appear to have reached the bottom of the business val- ley, but we do not yet know how wide the valley may be. In the two most recent periods of subnormal business, in 1924 and 1927, recovery began as soon | as the bottoms of the declines had been reached, but in nearly all the previous recession periods definite recovery was longer delayed. It now seems probable that in this present case recovery will be prompt, but that is not yet sure. Building Construction. Building construction has not yet turned definitely upward, and that is particularly true of residence construc- tion, which is exceptionally slow, How- ever, the severe Winter may be holding building back, and meanwhile it is well to note that while construction is still below normal the figures are not getting worse as the weeks pass. Freight traf- fic on the railroads has not yet showed | signs of improvement, but it is not | showing notable decreases, and here | again it may be that the severe weather is in part responsible for some of the decreased activity. Iron and Steel Industry. Business recovery will be achieved Upper: Clarence F. Norment, jr., president of the Norfolk & Washingto: Steamboat Co., the annual election tak- ing place during the week. Lower: J. Allen Riordon, general manager, who has been connected with the company 29 years. NEW BOND ISSUES IMPEDE ADVANCES Market Gives Good Account of Itself During Week, However. trial activity get back to normal. This he- not yet happened in the case of any one of the more important basal indu: tries, but there are encouraging evi- dences that the process of recovery is under way. Activity in the iron and steel industry fell steadily and rapidly from early October to the second week of January. It then turned up, and 'has made sus- tained progress since that time. This is the most hopeful indicator that we have that a real turn for the better in in- dustrial activity may have been reached. Automobile production was still at a high level last October, and its decline to the third week of December was swift and drastic. Since then there has been a considerable recovery to levels that are still well below normal, but which may probably be bettered during the Special Dispatch to The Star. NEW YORK, February 15.—Despite continued easy money rates, bond prices failed to advance during the past week. Indeed, many issues dropped off considerably from their levels of the week before. This was partly attributable to the fact that once again the market had a large amount of new offerings to absorb and partly to the slow but steady progress of stocks which has attracted many investors back to the g equity market, where, they blieve, ot e o I e s LS they can more quickly recover what |largely due S A o they loat 1ast Fall. | and Chevrolet plants, which have am Nevertheless, bond dealers agree, the | bitious schedules for February and market is hardly the gauge of its own | March. If these schedules can be ad- Soundness. Since the beginning of the | hered to they will go far toward insur- year over $800,000,000 of new financing | IDg a general recovery of business ac- has come into sight, all but a very | !ivity by Spring. [ - OF RECOVERY FROM when the fundamental lines of indus- ?gemesuc N small proportion of it in bonds. The out many issues that had been hanging October’s break in stock prices. Hence, | i! dealers have had the task of di { tributing about $130,000,000 per week, outstanding issues. Bond Buying Larger. It is quite evident, then, that even if the public has not made the re- sponse in the bond market that many | expected of it, after what stocks did at the end of the last year, there is a tre- mendous amount of bond purchasing going on. True, some of the issues | have moved slowly, notably many of the municipals, but others have moved | {swiftly. A huge slice of this buying | | comes from insurance companies and | | savings banks. These institutions have | not been buying as many municipals }as usual, and are reported as big pur- | chasers of railroad, public utility and | {real estate mortgages. The whole municipal market has been affected by the Chicago situation, | although some reassurance was glven by the statement of New York’s finan- cial position. It is inted out that municipal loans in country now total around $12,578,000,000 as Jxlinst; $2196,200,030 in 1913 and $7,264,200,- 000 in 1922, Foreign Group. | In the foreign division the feature | | was the ease with which new flotations | were distributed. In addition to a| | $12,900,000 European clectric corpora- | tion limited 61, per cent debentures | with stock warrants, which went well | at par, there was a stock issue of 140, | 000 shares of General Italian Edison Electric Corporation. The ter were :lflo moved out rapidly at a price of STOCK AND BOND Today .... Previous day. Week ago. Year ago. years ago, 930) . High (1930). Low (1930).... Total sales (Copyright. 1 | priced much higher | issues, but now the two groups are | close together in market valuation. in 1929. The growing optimism of business ; | sentiment during the past month has | easiness of money rates has brought | fentiment durlng the past month has fire, some of them since before last | Crease of activity in the fundamentally mportant iron and steel industry. These are business developments of real importance, for l}: L; an o‘(’lj nn(} 2 i well tested rule that the iron and stee Spart Som transactions from and o U dustry nereases its rate of output | only in respo: productive inds creases as this present one during times | of slow business mark the turning point toward general recovery, and probably | that is what is happening now. Some- | times the industry makes a false start. as it did in January of 1924, when 17 blast furnaces were brought in, with 21 more added in the next two months, only to be followed by a decres 124 furnaces in the four succeeding | ‘months. to demands from y. Usually such in- Stock Prices, ‘There is one consideration which in- dicates the wisdom of restraint in in- terpreting the increased activity in | iron and steel as surely marking the turn toward the better in general busi- ness, and steel products have been steadily falling as the output has increased. Possibly demands for steel are less urgent than the increased activity would seem to_indicate. ‘This is that the prices of iron A year ago the industrial stocks were than the rail More than 23 million passenger auto- mobiles were registered in this country The gain over the number | registered during the previous year wac nearly two million cars, and only twic before, in 1923 and in 1925, has there been so great an increase. million mark was passed only seven | The 10- years ago, in 1922, so the increase . 91.9 (par value), $4,700,000. ., Standard Statistics Co.) during recent years has been truly phenomenal. MARKET AVERAGES By the Assoclated Press. SATURDAY, FEBRUARY 15. STOCKS. 50 Industrials. 179.4 10¢ 1058 104.5 ase of ; 16, 1930. PICKFORD IS NEW OFFICIAL IN WASHINGTON SAVINGS BANK Directors Name Well Known Figure In Financial Circles as Vice President. Branch BuildingiBfieing Erected. Directors of the Washington Savings Bank have elected a new vice president. At the last meeting of the board Dr. Edward F. Pickford being chosen for this important position, according to announcement made at the bank yes- | terday. Dr. Pickford is a native of New York State but for the past 35 years has| been engaged in active practice in the District of Columbia, at the same time taking a deep interest in the city's busi- ness affairs. He is a member of the Sigma Xi Fraternity, District of Co- lumbia Medical Society, as well as vari- ous clubs and civic organizations. Besides having been a director in the Washington Mechanics Savings Bank for more than 25 years and one of the original directors of the Washington Mechanics Mortgage Co., he is a direc- tor and vice president of thePhonograph Co. of America and a former vice presi- dent of the Electrical Clock Co. The bank in which he becomes an active official is now erecting a new building on Connecticut avenue oppo- | site the foot of Newark street. The main_office is now located at Eighth and G streets southeast, while branch offices are maintained at East Capitol and Ninth streets and at 3608 Georgia avenue, Ezra Gould has been president of the Washington Mechanics Savings Bank B EDWARD F. PICKFORD. for many years. He believes that the rapid growth of business and residences along Connecticut avenue have brought about an excellent opportunity for a bank in that section of the city. CUT IN REDISCOUNT RATES IS NOTABLE Complete Harmony Revealed Between Reserve Board and Member Banks. Special Dispatch to The Star. NEW YORK, February 15.—The co- conditions easy throughout the country eral Reserve system in making credit conditions easy throughout the country, as an aid to business recovery, is illus- trated in the reduction just made in the rediscount rate of the Kansas City Re- serve Bank from 412 to 4 per cent.| This brings it down to a parity with the major financial centers of New York, Chicago and Boston. ‘The swiftness with which the whole complexion of the rediscount situation has changed in the last few weeks it one of the most notable incidents in the world. Previously re has been considerable resistance to establishing “either the minimum or the maximum rates adopted by the New York Federal Reserve Bank. Unanimity of Action Seen. ‘That a center 50 unlike those affected primarily by stock market transactions should come into line with the official money rate in the latter is ample evi- dence that the Federal Reserve Board is now dealing with a unanimity of action among its members, which is in contrast with the attitude prevailing just a year ago when the fight was on for higher rates in New York. The reserve ratio of the twelve Fed- eral Reserve banks shown in their re- ports on Thursday, which was as of February 11, was about 78 per cent. This compared with slightly under 70 per cent a year ago. While the banks in the system as a whole showed ap- proximately the same total of bills dis- counted as the week previous, the New York bank indicated an increase of nearly $25,000,000. Kansas City now has a reserve ratio of 81.6 per cent, which is the highest of all of the 12 | regional institutions with the exception | of San Francisco, whose ratio is above 90 per cent. Another Rate Cut Likely. In the past.we°k the discounted bills of the Pacific Coast bank dropped from | $20,772,000 to $10,004,000. It would not be surprising if another reduction were soon announced in the rediscount rate of the San Francisco bank. Minneapolis has the smallest total of rediscounts of any of the 12 banks, the figure currently being $2.457,000. St. Louis, whose rate was the last to stand at 5-per cent and was reduced to 4'2 per cent on Monday, shows discounts of $15,189,000, or a slight increase over th. previous week. Dallas has the low- est reserve ratio of any of the member institutions, 58.1 per cent, with bills discounted, $11,097,000. Atlanta and Richmond show reserve ratios, respec- tively, of 71.1 and 78.5 per cent. (Copyright. 1930.) POWER FIRMS PLAN $198,000,000 OUTLAY National Electric Light Association Reports Progress on New Construction. According to information received by the National Electric Light Association from companies representing 85 per cent of the light and power industry, the total estimated expenditures for new construction already made, or to be made by March 31, will be $198,- 000,000. This amount is 10!. per cent higher than the amount expended dur- ing the first quarter o° 1929. The in- formation was obtained in response to a request of President Hoover's Busi- ness Survey Conference and in order to determine the actual progress in carry- ing out the construction program of the electric light and power utility companies for 1930. The total amount in new orders for equipment and materials with manu- facturers and producers already placed, or to be placed by March 31, will be $180,000,000. This is 381 per cent of the total placement of new orders with manufacturers and producers which it is anticipated will be made during the year, BIG ADVERTISING BUDGET PLANNED BY GILLETTE Spectal, Dispatch to The Star. BOSTON, February 15.—A total ad- vertising budget of $10,000,000 for 1930 will be put behind the new model razor and blades of the Gillette Safety Razor Co., -wordlng to anncuncement by Frank J. Fahey, vice president and general manager. Seven and a half million will be used in the United States —an increase of two and a half million over last year—of which a substantial part will be devoted to newsoaner ad- vertising. i | FOREIGN BUSINESS - SLOW N RECOVERY |Eastern Europe Reports Still Further Recessions in Com- mercial Activity. Special Dispatch to The Star. NEW YORK, February 15.—Cable dispatches to the Business Week give | the following survey of business abroad | for the week ending February 15: Europe—Apart from the continued readjustment of bank rates to lower levels and the flow of capital from sur- plus to deficiency countries, business conditions are featureless. So far no general pickup is apparent, though only tractions of activity. Continued mild Winter weather is bringing an early de- cline in coal procuction after recent record levels. Continuing low world cereal prices delay the recovery of farm purchasing power, important to devel~ opment of the year's business. There is interest in the fact that the United States, at the last minute, appointed an observer to the tariff truce conference. Great Britain—Business, encouraged by the lower bank rate, is cheerful. Interest at present is focused on the coal bill and on the budget. Foreign iron and steel demand is strengthening, but _coal contraction is especially sharp in Wales, where also there is a con- gestion of idle shipping. The section of the industry spinning American cotton is expected to reduce from a 48 to a 35 hour week for the next eight weeks. New sugar_exchange opens at Liverpool February 25, reviving futures, onetime Liverpool feature which was suspended during the war. The India $30,000,000 6 per cent 2-year loan proceeds are met. Maturing nine-month notes are over subscribed, interpreted as showing in- creased confidence in the India situa- tion. With world-wide tin production restrictions now effective, the price of the metal is firmer. British-Dutch rubber stabilization negotiations are progressing. Germany Awaits Revival. Germany—Despite lowered money rates the expected business revival has not yet materialized. Industrial trends are mixed, but in general indicate weaker domestic purchasing power, especially in agricultural groups, and stronger export demand. The rate of increase of unemployment is slower, the total now being 2,200,000, slightly below the figure for this time last year. Gov- ernmental finances are the principal anxiety of business leaders. Molden~ hauer’s program of increased taxes is necessary to meet existing deficits, but incurs the united opposition of all parties. Business is opposing an in- crease of the sales tax from 3 per cent to 1 per cent; Bavaria is opposing the doubling of the beer tax; the Socialists are opposing the borrowing from healthy employes' insurance funds to- wnlrd payment of the unemployment oles. It is reported that the food minister is urging the government warehouse to finance 100,000 tons of the surplus rye crop, thus permitting the recovery of collapsed prices for this grain. Instancing difficulties among domestic automobile companies, Wandererwerke, one of the largest manufacturers, after & 6 per cent dividend in 1928, - nounces a $400,000 loss in 1929, Co: versely, anticipation of tariff increases stimulated January automobile imports and sales. The upper chamber ral fled the Young plan, but not una; mously, Bavaria and Mecklenburg al staining, and the eastern provinces reg- | istering opposition. Favorable action in the lower chamber is expected. about | February 22, Belgium—Business is more spotty. | Textile strikes spread. Year's ane trade balance increases from $36,000,000 to $98,000,000 due to triple increase of imports over exports. In Antwerp, dia- mond cutters, working for several months only in alternate weeks, will return to regular schedules at the end of the month. Amsterdam cutters, working only three days a week since December 1, will resume full time schedule. g | MURPHY COMPANY NOTES GROWTH OF UTILITIES Despite the increasing difficulty of finding new customers for electric pow- er in recent years, the companies oper- ating in this fleld haye consistently shown their ability to increase output by creating greater domestic per capita consumption and by finding new in- dustrial uses, says G. M. P. Murphy & Co., in the current issue of their fort- nightly review. Since 1882, according to the review, electrigity consumed for domestic pur- poses shown an unbroken succes- slon of annual increases, while in- dustrial consumption has paralleled it, only falling off in the post-war year of 1921. Total power increased 71 per cent from 1922 to 1927, 95 per cent in 1928 and 11 per cent in 1920. It as- serts that continuance of this annual rate of growth will mean another 70 per cent by the end of 1932, 2 Eastern Europe reports further con- | ADVANCE IN STOCK PRICES BRINGS 0UT INCREASED SELLING Bullish and Bearish Symp- toms Shown During Week. Trend Upward. RECOVERY IS CONTRAST TO RECENT SHARP DROP Easier Money Assists Business in Offsetting [Effects of Market Slump, BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, February 15.—There have been strongly bullish as well as conspiculously bearish symptoms in this week's stock market. The former have surmounted the effect of the latter on general price average. However, with junior securities now so much above the level of last December, in- creasing resistance to the advance is shown. ‘There are signs that Wall Street has overplayed the element of industrial recovery and improving business senti- ment in its relation to stocks. Compared with three months ago, the situation is excellent. No one could have believed on November 13 that by the middle of February there would have been so much of lost market valuees regained in so short a time or that the country would have passed through the severest speculative crisis in its history with so little visible wreckage to business concerns. Bulk of Liquidation Finished. The fact that both industrial and | rail stock averages have, within a few days, risen above those reached in the first uprush of prices following the Flnlc is proof that the bulk of the liquidation necessary to a clearing up of the market has been completed. It does not mean, however, that all of the weak accounts have been eliminated or thaet all corporations have been im- mune to the decline in purchasf power due to the great shrinkage in security values, or to the effects of overproduction during several years of national prosperity. Many shares have regained fyom 20 to 40 per cent of their gross loss in 1929. This makes them much more acceptable in collateral loans than they were a short time ago. Stocks that have risen from 35 to 50 points look like they had returned to complete re- covery until a study of the price list re- va;ll the !lfl that they‘:,‘-mlfleo ta 1 ts_lower than August an in ber. Many 6f them have a long way to go before investment trusts and trading corporations as well as in- dividuals can write them up to the cost prices in their. portfolios. While day after day from 100 to nearly 200 separate issues have been making new high prices for this year, no outstand- ing “highs” for all time are being re- corded. Some Distressed Industrials. In contrast to this favorable trend in prices is that of an increasing grou of somewhat distressed industrials, whose action this week has been con- tradictory to statements that business rapidly is approaching normal. Business Upswing Expected. Undoubtedly the improvement in market prices has been a big element in creating the more cheerful attitude toward business in the second half of this year, as few look for a decided up- swing until late in the Spring. If the break in stocks last November was re- sponsible for producing the slump in industry, it is logical that a market rally of the present proportions should have a pronounced influence on pro- ducers and consumers alike. In spite of this unfavorable showing by the carriers, their stocks have been notably strong this week from the bene- it of easy money, and with the possi- bility of impending mergers overb: ancing current unsatisfactory revenues. Easler money will effect part of the cure sought by both business and the markets for securities, and the more quickly as these are complementary to each other. An investor who has idle funds may not like the look of railroad or industrial conditions as they are rep- resented in current earnings, but he |H. will not be satisfled to receive a small return on his money when he can use it in the market for high-grade securi- ties to much better advantage. Obviously, large sums that were em- ployed for nearly a year .nd a half in the call money market are now flowing steadily into investment channels. When this fact is recognized, along with the other one that many millions of shares of American corporations were bought outright and “put away” be- tween the middle of October and the middle of December, thereby reducing floating supplies to the smallest totals in years, it is not surprising that stocks g0 up, as they have at times this week, when the statistical evidence seems to presume that they should go down. DAVID F. HOUSTON PUT ON UNION PACIFIC BOARD David F. Houston, president of the Mutual Life Insurance Co. and for- merly Secretary of Agriculture during the Wilson administration, has been elected a director of the Union Pacific Railroad. He already is a director of the Delaware, Lackawanna & Western railroad, the Guaranty Trust Co. of New York, American Telephone and Telegraph Co. and the New York Tele- phone Co. By the Associated Press. Brokers' loans Federal Reserve system ratio.......... Holdings (United States): Securities . Gold reserve, Rediscounts ...... Bank clearings. . (Final three ciphers omitted tn above.) Car loadings week ending February 1.. Crude oll production (barrels)......... Stock sales (N. Y. Stock Exchange) Bond sales (N. Y. Stock Exchange) Call money Tate.....c.cvvuiiniininnae Time money rate.....c.eveesssnnnsnne Commeghl DT L v b i i $43,154,000 156,225,000 LUTHER E. SCHREINER, Vice president of the Merchants Bank & Trust Co, who has been appointed by President W. J. Waller as chairman of the hotel committee for the District of Columbia Bankers' Association’s an- nual convention, to be held at Asheville, N. C, in June. AVIATION INDUSTRY NEEDS STIMULUS Major Readjustments Due to Overproduction Now Being Remedied, Official Says. BY J. C. ROYLE. Officials of the Department of Com- merce, the Army and Navy and the Post Office Department can be counted on for full co-operation in helping the aviation industry work out the prob- g | lems over which it is struggling today, as the International Aircraft Exposition opens in St. Louis. Aviation, Govern- ment officials recognize, is still in its infancy and is subject to the “growing pains” of all lines of industry. Frederick B. Rentschler, president of the Aeronautical Chamber of Com- merce, declared yesterday that the in- dustry is well on its way toward its first major readjustments. The period of over-expansion and over-production, he added, been foreseen even before the stock market crash and the larger -mani rs-began early to cut out- t. It is 2 apparent, however, that the eavy carry-over from the production of 6,034 craft in 1929 has yet. to be disposed of. . Plane Types. Executives of the aviation section of the Department of Commerce assert that one of the best methods of stimu- lating sales and production is for manu- facturers to settle definitely on certain types of plane and go in for produc- tion of those types and those only. This, the officials say, would cut costs and stimulate sales by making prices lower. The difficulty of many manu- facturers now, they add, is that com- petition has forced them to construct planes of many grn which would not permit of line production methods such as have become the rule in the automo- bile industry. The aeronautics branch of the De- partment of Commerce also declares that prices must be cut to move the excess number of planes on hand. It is believed this can be accomplished to a certain extent by introduction of | recently developed machinery which| would do away with much of the hand- work on the machines. With these conditions in mind, Gov- ernment officials belleve the main ad- vance in aviation in 1930 will lie in the operating end. Passenger and freight carrying will be expanded to a greater extent than the manufacture of new planes. The St. Louis exposition is likely to give the public the manufacturers and the dealers new ideas as to plane types. Planes, motors and accessories on view are valued at $2,500,000. The major feature stressed is the increase in speed. 9 bee Davison, Assistant Secretary of War for Aeronautics, says speed is the essential factor in making commer- cial aviation a Enylna fi‘roposmon. en- abling a cut both in flying time and in expense of operation. The air transport companies, which now fly approximately 85,000 miles a da’ and in the last year carried proximately 7,000,000 pounds of mail, are extremely anxious -to e the contract mail rates put on a firm footing, and they are no more anxious to have this done than is Postmaster General Brown. Measures are now be- fore Congress, which, if passed, the aviation men say would give decided stimulus to airmail transportation, . Flying Schools. ‘The subject of flying schools is being given serious consideration by both manufacturers and Government officers. 1t is recognized that the industry needs more pilots, both professional and ama- teur, but that the schools should be strictly supervised so that they will use proper equipment and training methods. There are 61 colleges and universities now giving courses in aeronautics. Governmen’ and industry will also co-operate in the regulation of airports | and landing fields, many of those now in use having been found to be unsat- isfactory both from the viewpoint of equipment and location. (Copyright, 1930.) HIGH LIGHTS Last week. Same week '20. This week. $3,450,000 $3,402,000 $5,568,000 17.9% 18.0% 69.8% $478,560 2,974,978 381,914 8,331,272 $477,844 2,97:563 381,442 11,113,902 $177,170 2,686,221 903,949 11,778,394 898,894 2,613,800 15,240,560 862,621 3,595,000 19,061,350 16,045,810 $55,377,000 $41,022,000 | 248,505,000 . . 4-4%% 6-10% 947,154 4au | many i andria), LIFE POLICY FOUND - MOST POPULAR BY INSURANGE EXPERT Dr. Charles E. Albright Says Million-Dollar Underwritings Have Shown Increase. PREDICTS NEW RECORDS IN NEXT FIVE YEARS Calls Attention to Growing Variety _ of Risks Suited to Various Needs and People. BY JOHN F. SINCLAIR. NEW _YORK, Felrvary 15—Dr. Charles E. Albright, who represents the Northwestern Mutual Life Insurance Co. of Milwaukee, probably has written more 'ife insurance than any other man in history. A gradnate of Rush Medical Ccilege of Chicago, he went to Milwaukee in 1891 to become one of the assistant medical directors of the Northwestern. In 1905 he started selling insurance and turned in $305,000 in sales during the first five months. He liked the work and his medical practive receded. He is not the high pressure type of salesman at all, but he does “bring home the bacon.” His average sales for the past 10 years with this one ° company are now in excess of $2,750,000 a year. The doctor maintains offices in Mil- waukee, Chicago, New York and a half a dozen other cities, is a director of organizations, including the | Allis-Chalmers Co. and the first Wis- |consin bank group. Still he finds plenty of time for play, recreation and vacation. Just before he sailed with his wife on a pleasure trip this week, I asked him what form of life insurance was now the most popular. “Many new ds of insurance have been tried out in recent years. The business man can term insurance, endowment insurance, protection insur- ance for every kind of individual and business need,” says the doctor. “But the straight life insurance policy con- tinues to be the most popular of all. Ninety-five per cent of all my business Is in this field. Why? Because 1t's the kind of insurance that appeals to the average man.” Recently he wrote a million-dollar policy on the lives of those two famous radio comedians—Amos and Andy. R “Policies of a million dollars are not | so rare no:vh u‘ dmey (\ued u‘a be. scfinz years ago the idea of carrying a policy as large as $1,500,000 of insurance would have shocked even a millionaire, But not now.” Dr. Albright has already written more than $50,000,000 of insurance. But he believes the record will be badly shattered in the next five years. Automobiles Aid Prosperity. | . Had it not been for the automobile | industry, the great expansion and pros- | perity of the United States during the | last 10 years would not have been ;W;n’le' important 0 one important survey now is to be able to accurately jug the output |of the automobile “industry in the Ux;mehst:u for lflg). n_the five years from 1920 to 1924 the Ford Motor Co. produced an aver- age of 1,370,000 cars out of 2,893,000 total—not n};lé: one-half. In the next | five years, 1925 to 1929, the Ford percentage fell to about 30 per cent of the output. This lower figure was largely due to Ford’s 1927 and 1928 low production. In 1927 it fell to 10 - per cent of the total American pro- dugtkcm’. ut in 1929 Ford recovered to about 35 per cent and began moving ahead - strong with his new models. This year, which is already showing a {gun: ;gndency“r:awndhthe small, w-priced cars, 's schedule calis for 2,500,000 units. Brookmire estimates Ford's produc- tlon this year at 1,750,000 units; Gen- eral Motors at a little over 1,300,000, and all others at slightly under 1,100,- 000 units.. If the Brookmire figures work out, it means that about 2,400,- 000 non-Ford units will be produced in 1930, as against 3,650,000 in 1929 ln;\zd’ 3,808,000 in the record year of “This is a reduction of about 35 per cent in production of the ex-Ford group and will mean an average operating return for the year of not over 50 per cent capacity,” says the Brookmire Service. The. Ford comeback in the last two ~ years is an amazing business e isode, probably as dramatic as lnythgu in American business history, ‘ Ford's Niche in History. | _,.“Men like Mr. Ford arc known as few | Statesmen and certainly as no creative | artist or thinker has ever been known,” | said a recent writer. Charles Hooper of Idaho takes issue with this statement as being very “shallow. He says: “It is utterly absurd that Uncle Henry's fame will pass on to future generations as the fame of Demosthenes, Plato, Aristotle, Michel- angelo, Shakespeare and other great thinkers and artists, “How infin'tesimal, in comparison, is the number of rich men whose names - have come down to us. At the mo- ment I can think of only Solomon, Croesus, Maecenas, Ambrose (of Alex- the DI Medicis and Fugger. And these men are known more for their rank and their connection with genius than for their wealth. Solomon was rich, but he is known more for his wisdom than for his wealth.” While Henry Ford is probably richer than all of the men mentioned, his name will be known 'y future genera~ tions, not for his wealth, but for his ability and genius in the field of mass production. His genius has increased _ life more abundantly for the millions, And s0 flven humanity a wider vision, ‘This Henry Ford's contribution, and future ages will not overlook this. Von Luckner. e Count von Luckner, German subma- rine commander in ‘the World War, who at its close came to America and took out citizenship pape: United States, is living on his yacht Mopelia, now lying in the Hudson River off Seventy-ninth street, New York. The count is one of the esting characters A speak sel d ore end of the United States one to the *Hii tnoame etnce 'the. var from ce books, writings and leetur:“ ‘would nhr': gehe many other well known public n. His wife, the daughter of the Swedish mrktfl.hlmm hter of Al- %% T%%% 51-5%% et 415-5% 413-4%% Nobel, who A vented in: obel