Evening Star Newspaper, March 12, 1930, Page 12

THE EVENING GAININ AIR TRAVE |5 FORECAST SOON “Rickenbacker Believes Public | Will Increase Patronage of Planes. : BY JOHN, F. SINCLAIR. { Special Dispatch to The Star. NEW YORK, March 12.—Watch liri . travel this Summer! It will reach the high tide—far outdistancing any pre- “avious record! ~ This is the prophecy of Capt. E. V. ”/Rickenbacker, the American ace, now | “vice president of the Fokker Aircraft | »~Corporation. H Capt. Rickenbacker believes that the | aircraft companies made a mistake in thinking that the time-saving element, which so appeals to big business execu- ~‘tives could be made the basis for the ”charges sufficient to warrant a large | business. But directors of business en- terprises hesitated to become air-mind- Many refused to sanction air-travel | their officers. Because of this, air-; = e companies have turned from high ates and the high rate customers to Jow rates and the more lowly tustomers. - The new slogan “tell it to Sweeney, - the Astorbilts know” is the basis of a ““new and growing business, according to ~.Capt. Rickenbacker. ©° The Fokker Co. is speeding up pro-, Cduction of its 32-place planes with all | Amusement Stocks Assume Leadership InMarket Advance VariousMembersofGroup Show Strength at Re- cent Sessions. BY LEMUEL F. PARTON. NEW YORK, March 12.—Caesar Augustus had been around the Roman world a lot and knew pretty well what people wanted. When times got hard, the Senate proposed bread and circuses. There is no shorthand record of Caesar’s reply, Sallust paraphrases it some- thing like this: “You've got it the wrong way about. Give them circuses and bread, rather than bread and circuses. In fact, if we give them plenty of circuses, the bread will almost take care of itself.” Those who have been selling human nature short are covering today. Amuse- ment stocks are up in front in the market come-back. Three have made new highs for the year. Recent Advances. Even Fox Film, in the midst of a big | receivership dog fight, is close to its peak for the year and has more than | doubled its low of 16%. ernerl Brothers hit 72, a new top for all time, | in Monday's trading. Radio Keith Orpheum was up 3 points for the day, and Radio 2%. L Fastman Kodak touched a new year's high, reachi 229, topping its previous high of 228, after a climb from 175%. Paramount hit 7134, only one-fourth of a point below its previous high for the year. Reynolds Tobacco touched 57%, a new high for the i STEEL PRODUCTION UNEVENLY DIVIDED Ingot Output Declines in Ag- gregate, but Some Dis- tricts Show Gain. By the Associated Press. NEW YORK, March 12.—The steel ! market presents a confusing picture with business ufievenly distributed geo- graphically, and with demand for dif- | ferent finished products show sharp contrasts, Iron Age will say ‘Y:r‘mflm' in its weekly review of the iron and steel industry. “For the country as a whole,” the re- view points out, “ingot production has declined from 78 to 75 per cent of (rated) capacity, but specifications have shown no further recession. At Chi- cago. on the other hand, output is holding at 95 per cent and bookings are the largest in five weks. Produc- tion at Birmingham also exceeds 90 per cent, with finishing departments handicapped by the shortage of ingots. “Steel makers with diversified pro- duction are faring better than tgm specializing in flat-rolled products. The Steel Corporation average, although 33"" a !ewtptzl‘nh to nl‘l‘h zmgua than per cen! capacity, LA con- siderably higher than the rate of manu- facturers whose output is limited mainly to light forms of steel. This fact helps explain the cor tion's gain of 11,- 038 tons in unfilled orders in Febru- ary, in the face of high rate of opera- STAR, WASHINGTO! BY PRESTON S. KRECKER. Specid! Dispatch to The Star. NEW YORK, March 12.—Steel mer- gers of the last few years gradually have asborbeg so many of the more ble independent units that com- petition for those not yet snapped up by the big fellows is becoming very keen. That fact has been strikingly roved by current developments in the Tadustey. Co. became a bone of contention be- | tween opposing groups, one of which | aims to merge it with the American | Rolling Mill Co., while the other is equally_determined that the Republic | Steel _Corporation, the Cleveland capitalists headed by | Cyrus S. Eaton, shall get it. | “Now the Republic Steel group is ve- | vealed as competing with the Bethle- | hem Steel Corporation for the Youngs- | town Sheet & Tube Co., one of the | most. desirable of the independents still | at large. Apparently authentic reports | have it that the terms of a merger with | the Bethlehem Steel Corporation al- ready have been approved by the heads | of the two companies and are to be | submitted to the respective full boards of directors on Wednesday. Rely on Stockholders. SMALL UNITS IN STEEL TRADE COVETED IN MERGER PLANS |Only Few Companies Remain in Ranks of | Independents—Youngstown Firm One of Best. A few’ days ago the Gulf States Steel | recent creation of | If those boards approve the plan, | D. WEDNESDAY. them, and may be in excess of 20 per cent. Youngstown interests outside the | management group are understood to | control about 20 per cent. On the face of those figures the opposition could | muster a total vote of approximately | 40 per cent, for Youngstown people do not want Easterners to get their com- pany. | | Two-Thirds Vote Needed. | | Such an opposition vote would be | more than sufficient to defeat the pro- | posal, inasmuch as a two-thirds vote of | | stockholders is fequired to ratify sale | of the property. Victory for the Eaton group, now in- dicated, would probably mean eventual | absorption by the Republic Steel Cor- | poration of the Youngstown Sheet & ‘Tube Co. That would result in mak- | ing the Republic approximately as large & steel organization as Bethlehem, with a possibility that it eventually would outstrip the latter through absorption of the Gulf States Co. | The creation of a huge steel com- | pany in the Mahoning Valley is one of the dreams of Cyrus S. Eaton, who recently said that he envisions the State of Ohio adjacent area as a great in- land industrial empire with boundless ore reserves to the north and unlimited coal reserves to the south. (Copyright, MARCH 1 Public Utilities BY GEORGE T. HUGHES. It needs only a casual inspection of the stock table to discover that the shares of the public utility corporations sell on a lower yield basis than any other group. In many instances the return on these stocks at current divi- dend rates and prevailing market prices is lower than that to be had on high- grade bonds. This is the condition which obtained so conspicuously in tke bull market of last Summer, and it has been restored, in part at least, by the recovery since the break. | The reasons for this preference shown by investors to the stocks of the electric light and power, of the gas and of the telephone companies are not hard to understand. This is the one class of securities on which earnings show con- tinuous increases, all the benefit of which goes to the common stocks. The return on the bonds and on the pre- ferred stocks is fixed, and the larger margin of income accrues to the com- mon, and to the common alone. The first explanation, then, is the steady upward trend in earnings. Sec- ond comes the profit to the shareholder due to the raising of new capital in so large a degree by the offering of rights either to subscribe to new stock or to convertible bonds. If these rights are sold at the market, they increase the dividend yield by that much, and if they are exercised they increase the | capital account. PFigured in that way, the yield on American Telephone & Telegraph stock, for instance, is comparatively generous. Third is the fact, whether realized or not, that the public utilities will not suffer from downward readjustment of commodity prices. They have no in- ventory problem to solve. They sell services and not . Finally, we have a situation with regard to public relations which compares favorably NEW SECURITIE YORK, March 12 (#).—New Ameri can Oommg:flw;-lthx ro'n | Corporation, $10,000, per cent con- | vertible gold debentures, dated March | 1, 1930, and to mature March 1, 1940, priced at 98.16 and accrued \nw;z :f ! . & Co. | cent cumulative $100 par yleld 6.25 per cent: offered Rollins & Sons, Albert E. Pierce and others. The Laclede Gas Light Co., $5.500,- 000 first mortgage collateral and rle& [ bonds, series “D,” due February 1, 1960, | and priced at 100 and interest; offered tion era funding 30-year 5! per cent by Halsey, Stuart & Co. The Chicago, Milwaukee, St. Paul & ' world. Pacific Railroad, $4,260.000 4% per t trust certificates, series “L." dated March. 1, 1930, and maturing $284,000 ann from March 1, 1931, to March 1. 1 , and priced to yield 4.50 to 4.85 cent, according to maturity; off¢ the Interna- | tional Manhattan Co. and Salomon Brothers & Hutaler. The Autocar Co., $1,071,200 8 per preferred stock, priced at par and accrued divi- | dend; offered by Prince & Whitely and ‘uthm. IS ot St the begin: of the prohibi- e uene U. Guard has . 8. | become the sixth largest navy of the for the placing of your investment funds . . . for more than forty years the H. L. Rust Company has been making first trust loans on improved properties in the District of Columbia and adjacent Maryland suburbs. Investors have found the notes SAFE in the abundance of the security — CONVENIENT" in their de- nominations—PROFITABLE in the highest interest yield consistent with a 8 offer our facilities resources at its command. The | yoar. i~demand for these planes is expected 0| " 1y’ fact, Monday market gains Te- : be followed by.a demand for the smaller | gacted almost entirely the more “planes, for feeder lines. frivolous side of life. Nobody seemed to Criss-crossing from = Cleveland 10| e yearning for steel, gas, copper, power, ~Los Angeles and from Spokane and|iransportation or much of anything else Winnepeg to San Prancisco and El Paso | {1* 1pe wpract., category. In the index 930, terms of a proposed exchange of stock | ‘) will be announced, but indications to- | day were that the deal will never [e'.‘ that far. | On the surface indications were that the whole matter had been “sewn up.” It is learned, however, that Republic COPPER STOCKS INCREASE. NEW YORK, March 12 (#).—S8tocks of refined copper in North and South America on March 1 were 233,123 tons, an increase of 29,719 tons over the | | with that in any other industry. It 1s | these considerations which offset the low yleld on these stocks at the market. BUILDING CONTRA"CTS. | tions during that month. FOX FILES INJUNCTION SUIT IN STOCK TRUST conservative investment. today, finds planes crowded. Commer- | cial travelers, woman tourists—just the | +average sort of folk you meet in every- . day Pullman cars,” says the war ace. . luxury rate days are over. The new emphasis is placed where it will be | most effective—with the great mass of ; Americans. . ,_One hears much about the “big three” +in the motion picture Neld, but there , @re more than a dcnn| r;:l:lon m|‘)’u:t|.|re ! companies doing a natio uct and distributing business. » . ' __In the fleld of production, the first 12 companies rank about in the order !named: Paramount-Publix Corporation, | «Warner Brothers, Fox Films, Metro- | +Goldwyn-Mayer, First National Pic- .. tures, Radio-Keith-Orpheum, Artists, Universal Pictures, Pa change, Educational Film Exchanges, Columbia Pictures Corporation and Tif- :% Productions. | y no one company controls the wentire distribution flelg.. 'l¥h . houses z'vork under the Fox Theaters +Corporation. Loew’s, in which Fox has a 41 per .oent stock interest, is strong in New : York City, while United Artists and +Radio-Keith each have a number of iters throughout the country. * Universal, which specializ~d on coun- fry theaters, and at one time operated +several hundred, has been reducing its . number in the last few years. Brazil's problems center around cof- ‘'fee, United States’ in cotton and wheat, Oanada’s in wheat and Japan's in silk. Japan’s foreign trade is largely built «around silk. Today her slim market is +glutted. There's more silk in the world - there is demand for. Since Y , the price of silk has been slipping . . real reason, outside of the in yen, is the sudden drop in % y? Let's put the the November stock market Japan's difficulty, er of TFeb- | stocks, and loyes in Japanese silk worgmyconlyp-mme. mlm :;t" from gemnule:‘ what anyway? In New York -City, where 6,000,000 eonsumers live, No. 2.hard wheat sold last week for $1.12'¢ a bushel, as against $1.23 a month ago and $1.391; a year ago. No. 2 yellow corn sold at 97 cents a bushel, as against $1.04% a month ago and $1.16 a year ago. Coffee, No. 7 Rio, sold at 10% ®ents a pound, as against 1814 cents a year ago. ©reamery extra butter sold at 36 cents ® pound last week, as against 50 cents & pound s year ago. First fresh eggs at 253 cents a dozen, as agaiust 387 cents | & year ago. So much for foods. Now let's look at the textiles. Cot- ton, middling, brought 14 cents last week, against 212-3 cents a year ago. Raw s white, 13-15, commanded $4.97); a pound, as against $5.67); a year ago. Fine Montana scoured wool ‘commanded 79 cents a pound, as against $1.07', a year . ‘What about rubber and hides? Rib- smoked sheets of rubber brought 152 cents last week, as against 253 cents a | year ago.’ Calfskins, 9 to 12 pounds, commanded $2.45 each, as against $3 a year ago. Pennsylvania crude ofl, $2.70 & barrel last week and $4.10 a year u'l;'lke metals. Spot lead was 517-20 cents a pound last week, as against 7% cents a year ago, and prime West zinc was 5 cents a pound last week, as against 67-20 cents a year ago. Thus, in the fleld of foods, textiles, metals, rubber, hides and oil, we find a big drop over those prices prevailing a year ago. Still, lower prices are not an unmiti- gated curse to all classes—to the unem- - | President’s conference on unemploy- last | 50 much for the future as the of popular interest and demand circus- es properly came first. Of course, there are a lot of folks who have more time to blow smoke rings or go to a show than there were a few months ago, but it is by no means the unemployed who make up the bulk of the heavy theater patronage in New York just now. One of the big movie show shops here hit a new high of $111, 000 last week. Several others crowded up around $100,000. There are two current hits in the legitimate theater and the demand for seats at dizzy prices is such that the walting line is apt to stretch clear on down through the next few years to the old folks' home. Herbert Hoover's committee on recent economic changes, in its report to the ment, seemed to incline to the theory that the circuses come first, although they did not go back to Caesar Au- gustus. Food Standards Higher. “The committee,” said the report, “finds, from study of the fact-finding survey on which this report is based, that as a people we have become stead- ily less concerned about primary needs food, clothing and shelter. We have lost all fear concerning our pply, and s0 we can no longer look on food as a luxury or as a pri- mary source of pleasure. “American food standards have risen, but we hear little of the ‘high cost of living,’ and the ‘full dinner pail’ is ob- solete. We wear less clothing; more rayon and silks, less cotton and wool. Our wants have ranged more widely and we, now demand a list of goods and services which come under the category of ‘optional purchases.’ “Few of the current economic de- velopments have made such widespread changes in our national life or ; of our increasing leisure.” Of course, one might be cynical and point out that leisure is i a bit too rapidly here and there, but one finds that leisure, in the modern equa- tion, is more definitely a corrective for certain economic ills than it was in Ro- man days. instance, Eastman Kodak rides on up with the amusement therefore, Eastman A continues to be the I ‘user of metallic sflver in. the world. Thus amusements stimulate the use of “goods and services,” as the President’s com- mluim; pukh; it; remotely connected with the indus pyright, 1930.) WARM SPELL LOWERS COAL DEMAND IN U. S. Special Dispatch to The Jtar. NEW YORK, March 12—Warm weather over the greater part of Febru- ary resulted in abrupt slackening. of business in the bituminous coal markets of the United States, Coal / rts. Domestic demand was the lest hit, with some few markets reporting an al- most complete stoppage. Carried back to the mines, this situation resulted in material curtailments in production in most of the flelds. slumped sharply along with the decrease in ac- tivity, falling considerably below the general level in February of last year. Pebruary coal production is estimated at 39,615,000 net tons, a decrease of 10,163,000 tons from that of January and of 8,285,000 tons from Pebruary a year ago. Coal Age index of spot bitu- minous prices (preliminary) for Febru- ary was 1461;, against 153% for Jan- uary. The corresponding weighted avel prices stood at $1.77%; last month and $1.86% in January. Due to the high temperatures prevail- ing over much of in the anthraci T e last month, conditions te markets were dull. Inactivity characterized business in the domestic sizes, with consumers and deal- ers still manifesting a reluctance to lay in stocks. Chestnut, as in January and the preceding months, was the favored size and was scarce over the whole of the month. Pea was the next size most in demand. Announcements by a number of the leading operators that Winter prices a’mafl and to those with small incomes, name only two groups. — reorganization — more change! Such is the law of life. It's the law of business, too. Dr. Willis A. Gibbons, research chief of the United States Rubber Co., puts in a boost for research. His example is a striking one. In the year 1913 a comfortable suit of clothes cost $25. A rubber tire, good for 2,500 miles, cost also $25. Today a suit of clothes costs $50, while a tire, which is guaranteed now for 15,000 miles, can be secured for $10. The price of & suit of clothes equaled the cost of 2,500 miles of tire travel in 1913, as compared with 75,000 miles w-I day—a 30-fold increase. Gibbons conclusion is that re- search has done far more in the fleld of tires than it has in the field of clothes. ‘There are many leaders in the cloth- ing industry that will not object to that statement, for they know it is correct. (Copyright, 1930, by North American News- r Alliance.) would be maintained until May 1, in- stead of ending on April 1, failed to in- terest the market or stimulate demand. OIL PRICES ADVANCED. NEW YORK, March 12 (#).—The Standard Oil Co. of California has ad- vanced the price of crude ol 25 cents a barrel for the higher gravity oil. The prices for lower gravity also have been advanced, the 14-degree gravity oil be- ing increased 5 cents a barrel, DIVIDENDS DECLARED. NEW YORK, March 12 (#).— Regular. - Pay- Hidrs. of ble. ~ record. Ciorax_Chei Davenport H Elec B & 8| R =35555R4E,, B33 By the Associated Press. NEW YORK, March 12.—A suit for an injunction to restrain John E. Otter- son and H. L. Stuart from voting stock holdings in Fox Film & Fox Theaters Corporation which he deposited with them under a trust agreement last De- cember was begun in United States District Court yesterday by Willlam Fox. ‘The suit is similar to the State Su- preme Court action decided last Wed- nesday, the day of the stockholders’ meeting, in favor of Mr. Otterson and rt. In that action Justice n Levy held that the trustee- ship was valid by law and that the stock was being held in escrow by the Bank- ers’ Trust Co. He denied the petition of P:x to be named sole owner of the stock. | Steel interests, undismayed by the turn of events which threatens to rob them | of one of the units which they plan to consolidate with their own compsny, felt that stockholders will have the last word in the matter and indicated | confidence in their ability to block a | Bethlehem deal. That would mean a fight for proxies such as Otis & Co., the bankers for the Republic Steel Cor- poration. are now carrying on in the Gulf States Steel Co. As in the case of the Gulf States fight, the Cleveland financiers own a large block of stock of the Youngstown Sheet & Tube Co. through their control of the Cleveland Cliffs Corpordtion. Just how much stock is thus under their control has never been revealed, but it is known to be materially larger than the 15 per cent popularly credited to amount recorded for February 1 and | comparing with 55,213 tons on March | | 1, 1929, according to the American Bu- | reau of Metal Statistics. Total stocks of refined and blister copper on March 1 were 497,912 tons, as against 473,613 tons on February 1 and 439,726 tons on | January 1. NEW COMPANY FORMED. NEW YORK, March 12 (#)—The Pirst_Detroit Co. has been formed by | the Detroit Co. and the First National Co. to take over active operation of the | bond departments of the Detroit & Se- curity Trust Co., its affliate, the De- | troit” Co., and the First National Co. The new company will become the in- {vuugenc unit of the Detroit Bank- ers Co. NEW YORK, March 12 (#).—Build- ing and engineering work contracted for | in the 37 States East of the Rocky Mountains during the week ending March 7 amounted to $73,068,700, F. W. Dodge Corporation reports. This com- pares with $133,899,500 for contracts let in the preceding week, which was an unusually heavy construction week. The total for the corresponding week of last year was $90,445,500. Contracts awarded since the first of the year total $714,- 096,900, & daily average rate of about 18 per cent below the rate of activity dur- | ing the same period of 1929. TREASURY BALANCE. By the Associated Press. ‘Treasury receipts for March 10 were ;:,516 95; expenditures, $14,836,- lance, $4,478,138.92. 6% FIRST MORTGAGE NOTES H. L. Rust Company 1001 Fifteenth Street ESTABLISHED 1889 National 8100 Thursday, March 13th, we start a Special 9-Day demonstration of the new Frigidaire HYDRATOR Desserts and saladswill be served. New recipe books will be given away . . .. Be sure to attend Here's your opportunity to find out all sbout the marvelous new Frigidaire Hydrator. On Thursday, March 13th, we start a special 9-day demonstration—one of the most interesting ever held in our show- room. We will show the Hydrator in actual use—just as you would use it in your home. You will see how lettuce is made tender and brittle by the Hydrator's moist reviving cold. You will see how celery and radishes take on added crisp- ness—how tomatoes stay firm and deli- cious. You will see how convenient it is to keep all your vegetables in one com- pact compartment—how the Hydrator saves shelf space. Fast freezing exhibition The latest household cabinets in Porce- lain-on-steel will be on display. The famous “Frigidaire Cold Control” will be demonstrated. You will be shown how this device freezes ice cubes faster— how it permits you to make scores of unusual desserts that require extreme cold. Free dessert and salad recipe books And we'll give you an opportunity to taste the better dishes made possible by the Hydrator and the “Cold Control.” A Actual photograph of stalk of wilted celery before being placed in the Hydrator. This celery is tough, unpalatable, nseless. cooking expert will prepare and serve unusual salads and delicious frozen des- serts during the entire period of the dem- onstration. We have also arranged to distribute two souvenir recipe books— both filled with new and different recipes you'll want to try. Will you be our guest? SPECIAL OFFER until Saturday, March 22nd ‘We are prepared to make a liberal special offer to all who buy Frigidaire during our 9-day demonstration. Let us tell you about this offer. Let us tell you about our easy payment plan. Come in at your first opportunity. We will be open evenings until ten o'clock every dav of the demonstration. GOVERNMENT BALANCES |E&ih ARE AT LOW FIGURES | og wi wi & % By the Associated Press. T Cash balances on hand of the Gov- ernment are now showing some of the | 1sjsnd Cre lowest, figures ever recorded in modern | joliet & times. The latest daily statement of the 23 The same celery as it came from the Hydrator the Jollowing morning. The magic action of the Hydrator bas restored fh celery to its original 3 &) 3 »v L ERipEzR FRIGIDAIRE FRIGIDAIRE SALES CORPORATION, 511 14TH ST., OPPOSITE WILLARD HOTEL » HO & HERRMANN th & Eve Sts. N.W. MITCHELL HARDWARE CO. 5000 Wisconsin Ave. DRESSEZ'S BATTERY & SERVICE 11th & Pa. Ave. S CARL W. DAUBER 2520 15th St. N.W. ¥ THE FAMOUS “FRIGIDAIRE COLD CONTROL" r EEE > 2> > 3 Sop_5 > 3 the Government's cash at $4,478,138.92. Ordinarily any amount on hand of less than $100,000,000 is & small balance for the Government to Eemasa s SR e e S S DOODOOOPROOOOOOOOOOOOOOOOO0D! 333388358 8. KANN SONS COMPANY h & Market Space N.W. o tial. THE HECHT COMPANY Consol Pr Ltd (ord) 50c @ May 1 7Il.: F Sts. NW. Inereased. L. C. BROOKS CO.. INC. $1.50 Q Apr. 1 1514 Conm. Ave. N.W. Resumed. BROOKLAND HARDWARE CO. 4 ceereen.’ 300Q AP 1 & Monroe Sts. N.E. THOMAS ELECTRIC CO, 1110 9th St. N.W. WM. E. MILLER PUR. CO. Mh & E Sts. S.W. WOODWARD & LOTHROP 11th & G Sts. N.W. HUTCHINSON'S, INC. 1814 14th 8t NW. L. P. STEUART, INC. 1401 14th Bt N.W. ¥. S. HARRIS CO.. INC. 2000 14th St. N.W. 0. W. YOUNGBLOOD 341 Cedar St., Ti Park, Md. KLOMAN INSTRUMENT CO. 911 19th St. N.W. COLONY RADIO BATTERY 4835 NW. DULIN & MARTIN Conn. Ave. & L St. VECTO STORES 646 H St. NE. LANSBURGH & BRO, th & E Sts. N.W. cash balance is regarded as a matter for ull-eo:&luuluon by the Government's fiscal ials rather than one to be de- plored. The March 15 payment of in- | Calgary Power come taxes, the largest single source of Government revenue, is approaching |y, ... co.. gad the wmialiness of the balance of Accumulated. ‘han rer A dence 'of ‘the Cloceness. with which the | Inter Products bt.. £3.00 — Mar. 31 Government, is matching its income and Omitted. expenditures, CLARENDON, VA 3 Kermath Mig . TSVILLE, MD. MYATTS' & e Bushe Motor Company