Evening Star Newspaper, March 16, 1930, Page 83

News of Markets Pages 1to 4 Part 6—12 Pages CAPITAL TRACTION DIVIDEND RETAINED ONGPERCENTBASS Directors’ Action Follows De- cision in Fight for Higher Fare. STOCK HAS FIRM TONE ON WASHINGTON MARKET Recession of Only One-quarter of a Point Occurs During Turnover. Linotype Issue Active. BY EDWARD C. STONE. John H. Hanna announced yesterday that the directors of the Capital Trac- tlon Co. had declared a quarterly divi- dend of $1.50 per share at a special meeting held late Friday. The action followed the regular meet- | ing of the board earlier in the week, at which it was voted to delay the divi- dend declaration until some time dur- ing the coming week. It was assumed in the financial district that this delay was voted in the hope that the court’s rul- ing in the carfare plea would be an- | nounced in the meantime. The court’s decision against grant- ing higher fares came out early Friday afternoon and the dividend action fol- lowed that same day. Yesterday's an- nouncement was the most important news of the week in the local financial district, as nearly all of the traction company'’s stock is held in Washington. ‘The $1.50 declaration is the same as the dividend voted in the first guar- ter. At that time the directors reduced the payment from a 7 per cent rate to 6 per cent for the reason that the company had not been earning 7 per cent for a long time. The latest finan- clal show that the Capital Trac- tion is not now earning 6 per cent, it still being necessary to take part of the cash required for the dividend from the company’s reserve funds. Ex-Dividend on D. C. Exchange. Capital Traction stock was quoted ex- dividpend on the Washington Stock Ex- A ‘keler notifying the mem| dividend action. The stock opened with & salé of 45 shares ex-dividend at 83. Pive more changed hands at the same figure followed by a small lot sale of 10 shares at 82%; 10 more at 8215 and a closing sale of 5 shares at the same price. The closing price, with the £1.50 dividend, is the same as $84 + share, against a closing sale on Priday at 843, Yesterday's final quota- . tions were 82% bid and 83 asked, with- out the dividend, which is payable on April 1. ‘Aside from the special . interest in Capital Traction, Mergenthaler Linotype was most in the limelight. This stock is also selling ex dividend. It opened with at 108%; 2 20-share lots at 2 10-share lots at 106%, and 20 at 106%. After call 12 more shares changed hands at 106%, making the day’s turn- over 112 shares. Potomac Electric Power 6 per cent preferred sold at 111% and the 5l% cent issue came out at 107%. In bond division $1,000 Capital Trac- tion 5s moved at 955, $1,000 Potomac |, Consolid: ated 5s closed the week WILLIAM F. HAM Surprise Given Railway Exec- utive at Gathering in Harpers Ferry. Business Leader Came to Washington,in 1899—Ac- tive in Club Life. William F. Ham, president of the Washington Railway & Electric Co. and the Potomac Electric Power Co., was specially honored by fellow members of the Blue Ridge Rod and Gun Club at Harpers Férry last night on the occa- slon of his sixtieth birthday anniver- sary. About 30 members were present, and the affair was a complete surprise to_the railway executive. Mr. Ham has been president of the street railway and electric light and power companies since 1918. He came to Washington from Brooklyn, N. Y., where he had been auditor of the Brooklyn Rapid Transit Co. and held other positions with the same public utility. He was controller of the Washington Railway & Electric Co. for a time and served as treasurer and vice president of the company before being placed at the helm. Mr. Ham is rated as one of the best street rallway officials in the country. His close friends often refer to him as a “Maine Yankee.” Born in Lewiston, Me., he attended the famous Nichols Latin School in that city and later graduated from Bates College, also lo- BY FRIENDS ON 60th BIRTHDAY FINANCIAL AND CLASSIFIED @The Sunday Star WASHINGTON, D. C, SUNDAY MORNING, MARCH 16, IS HONORED WILLIAM F. HAM. BUILDING RECOVER HELD SURE METHOD ~ TORESTORE TRADE Col. Ayres Points to Home Construction as Means of Promoting Prosperity. CREDIT EASE HAS FAILED TO INCREASE CONTRACTS Securities Markets Show First Re- sponse to Rapid Drop in In- terest Rates. cated in Lewiston. He has lived in | Washington since 1899. His earliest | business connections were with the Equitable Life Insurance Co. of New York and afterward with the Lorain Steel Co., selling steel rails and railway supplies. Mr. Ham is a director in the Fed- eral-Aperican National Bank: member of the Mayflower Society, Sons of the Revolution; Board of Trade, Metropoli- tan, Chevy Chase, Rotary, Racquet and Blue Ridge Rod and Gun Clubs. The utilities official is very fond of fishing and every Summer visits various Cll;l:dlln lakes to enjoy his favorite sport. REVIVAL IN BONDS ATTRAGTS PUBLIC COMMODITY PRICE - GUTTING EXTENDED Many Issues Gain During the Week Under Stimulus of Easy Credit. Special Dispatch to The Star. NEW YORK, March 15.—The broad revival of the bond market, which has been so confidently predicted by Wall street ever since last October's crash of -mcnk , really got under way this week. ‘The argument that cheap money, a commodity avallable for some weeks past, automatically would result in higher prices for bonds had its justifi- cation in the fact that the week's ac- tivity and improvement were predicated on the virtual certainty that the New York Federal Reserve Bank would cut its rediscount rate to 3! per cent, which it did. But the sudden turn of sentiment on the part of institutions which ordinarily support the bond mar- ket and the turn of the tide of public interest toward the senior mart were the cumulative results of long weeks of easy money rates, combined with the gathering together of funds which finally had to find investment. Bond Advance Rapid. The banks, main buyers of bonds, did not have large sums of money available after last October’s crash. People who lost their money in the market no Electric at 1013 and $1,000 snd $500 Wash- Gas Light 6s, series A, moved at 105 "Whlle. $1:000 Gas Bs commanded 108 %. A Local issues not listed on the exchange were called off and very few changes noted during the week. Members of the exchange are becoming very en- thusiastic over their new quarters in the Washington Building. The exchange is to have a new quotation board and will be moved in about a month from the present quarters furnished by the American Security & Trust Co. New Report on German Bonds. ‘The statistical department of J. A. W. Iglehart & Co. has prepared a special report on German bonds in which the conclusion is rnchie.? that lu;t.lhr::n ad- vances of German issues are by, Germany's credit position entirely apart from the necessity for enhancing German credit created by the Young plan. In previous years, when French, Bel- glan ‘n’nd Italian issues receded to low levels, and doubt was expressed as to the ability of these countries to meet their doliar obligations, the Iglehart firm advocated their purchase as they reached the point in the cycle through which it holfs‘7 that German obligations are now passing. Charts illustrating the similarity of the present German cycle with the earlier French and Belgian cyclgs ac- company the analysis. The Treport estates that Germany's gold holdings have now*been increasing steadily for nearly a year, and that in addition the balance of trade during this period has been substantially in Germany's favor. [; Hall to Represent Resort. s ‘With the recent completion in Quel Province, Canada, of the Lucerne-in- Quebec recreational resort, sponsored by the Canadian Pacific Railway Co., Richard E. Hall, the local C. P. R. office announces, has been appointed resort representative for Washington and the southern district. The Lucerne-in-Quebec development, a lake-linked and timbered tract of 100 square miles of Quebec Province, Was formerly a seignorial grant of the French crown, being the feudal domain of the historical house of Papineau. The ancestral character of the property, with its turreted chateau and park landscape fronting the Ottawa River, has been realistically restored. An all- year program of recreation, including every phase of land and aquatic sports, will be instituted under skilled instruc- tors and guides. Echoes of Banking Conference. ©. Howard Wolfe told the Philadel- phia bank management conference that good banking management will settle the big issue between the three sys- tems of group, branch and unit banking. Willilam K. Payne declared that banks should obtain complete credit state- ments from all borrowers, not merely a balance sheet, but a statement of sales, earnings and expenses. Alumfider ‘Wall declared that no move to establish any other type of loan except merchant loans as rediscountablc at Federal Reserve Bank is eco- n sound. The liquidity of com- merce should be maintained by liquidity in_portfolios. F. B, Snyder declared that the recent establishment of the Real Estate Ex- chay in New York may increase the liquidity of real estate paper. Long- term lenders on real estate are not be in the market this year i| by _the “boiling” manner in | P. Lorillard Tobacco rting margin accounts. But now enough time has elapsed to enable depositors to save, and stocks have again reached a point where many investors can get out without loss or with little loss. As a result, many bonds have ad- vanced to a point where they are higher than at any time since early in 1928. New offerings during the week totaled about $175,000,000, pared with $90,000,000 last week and $65,000,- 000 in the week before. While a month ago the putting out of $175,000,000 in a single week would have had the ef- fect of depressing outstanding issues, this week outstanding bonds advanced into new high ground and new flota- ted | tlons were traded in on the open market above their offering price. Each day the volume of bonds traded on the stock market has ranged $14,- 000,000 to $18,000,000, compared with 10,000,000 or less a week or two ago. ‘The largest item of financing was $60,000,000 Pennsylvania Railroad 412 per cent debentures. These were over- subscribed and the books closed within & few minutes. The Allegheny Corpora- tion had similar success with $25,000,- 000 convertible 5 per cent offering and with a preferred stock issue of $12,500,- 000, paying $5.50. Financing Declines. In the past two months the volume of financing has dropped from $2,255,- 700,000 in 1929, to $1,303,800,000 this year, but it is only in stock flotations that there has been a decrease. Dur- ing the same period a total of $656,- 000,000 bonds were put out in 1929 against $979,800,000 this year. The ab- sorbing of all this has been a strain on the market at a time when prices were low and demand was correspond- ingly poor, but that the market's tech- nical position was good was evidenced which it indicated itself this week. United States Government bonds, the center of much attention because of the scarcity of high-grade, short-term issues, advanced every day during the week, and now the eight active issues stand at their highest since 1928. Their average stands 104,33, compared with their 1929 high average of 103.88. Fifty other bonds, representing the entire range of the market, average 93.68, compared with 91.33 iast week and their high level of 97.53. Each group, of course, did not improve in the same ratio. Ten prime railroad bonds reached an average value of 94.46 this week, compared with 92.85 a week ago. (Copyright, 1930.) LORILLARD TOBACCO CO. AFTER DANVILLE PLANT Special Dispatch to The Star. DANVILLE, Va., March 15.—An- nouncement is expected to be made here on Monday of the sale of the American Tobacco Co.’s local tobacco plant to the Co. for $125,000. The deal is said to include the local storage houses, sufficiently large to hold 7,000,000 pounds of leaf. ‘The Lorillard Co. proposes, it is fur- ther learned, to operate a stemmery | here on year-around bas! {wuss con- tinual employment to about 200 per- sons. \ Farm “Boadside” Markets. asserted that size ite of profitable bank- | business will produce can be obtained from in volume, URBANA, Il., March State-wide system of roadside for the direct selling of fruits and vege- tables and other farm produce is being ovrganized in Tllinols. . 15 (A—A markets Practice of Cheapening Ma- | terials Held Blow to Busi- ness Confidence. BY H. N. McGILL, Editor McGill Commodity Service. AUBURNDALE, Mass, March 15 (#)—Price cutting, dominates most markets, which is undermining busi- ness confidence more than anything else. During the past week, out of 15 individual commodity indices, 9 were lower, 5 unchanged and only 1 slightly higher. Business activity is now estimated at 5 per cent under normal, compared with 7 per cent below normal last month. The business volume March & year ago was 8 per cent above nor- Special Dispatch to The Star. CLEVELAND, Ohio, March 15.—The hope for improvement in business rests on the fact that credit has become cheap and is becoming plentiful. If cheap and abundant credit could ef- fect a recovery in building, and espe- clally in residence construction, the prompt return of prosperity would be made sure, says the monthly Business Builetin of the Cleveland Trust Co., edited by Col. Leonard P. Ayres. Build- ing booms destroy depressions. So far this year the progressive easing of credit conditions has had a stimulating effect on security prices, but it has not suc- ceeded in checking the long decline in residence building. The reason for this does not seem far to seek. During several years past the Ameri- can people have used truly enormous sums of our national savings for two sorts of investments, the purchase of homes and the purchase of securities. It was a period of prosperity in two phases. First, every city had its real estate boom, and then every exchange had its stock market boom. The two kinds of booms overlapped and inter- mingled. Finally both booms flattened out, the real estate boom going down first. Probably it is true that the Na- tion-wide shrinkage of values from the top figures to the present ones has been greater on the real estate than it has been on the securities. Realty and Securities Loans. While the two sets of booms were going forward great amounts of credit were being extended in, the form of loans to help purchase real estate, and loans to help buy securities. Now that both booms have come to an end there is ample opportunity to compare the results of lending on real estate with those of lending on securities, and the | ¢ comparison is painfully to the disad- vantage of real estate loans. Fore- closures and tax sales are everywhere numerous. Many building - and loan companies have suspended. Almost every bank has taken losses on its real estate loans, and is still taking them. Lenders on securities suffered no such losses. Call loans in Wall Street proved mal. Car loadings have increased and money rates lower. All commodities dropped to & new low, down 9 per cent, compared with March a year ago. The most impor- tant declines during the past week took place in agricultural products, non-ferrous metals, coarse textiles and vegetable oils. Industrial prices recorded more sta- bility, remaining unchanged, compared with week ago. In many instances cur- tailed production schedules have proven greater than the decline in demand. Industry, through co-operative meas- ures, is now striving to keep new pro- du lules close to new orders. Farm Prices. Agricultural products reached a new low, representing a price decline since last September of 18 per cent. Grains in particular have suffered. The Fed- eral Farm Board, while theoretically sound, has not profen an efficlent sub- stitute for the ever-present law of sup- ply and demand. ‘Textile prices are much steadier. Compared with a year ago cotton is down 33 per cent; silk, 10 per cent; wool, 30 per cent, and rayon, 9 per cent. Heavy supply of raw materials, as well as finished goods, is the chief obstacle in the market. Non-ferrous metals are sharply lower, principallv due to the collapse of the lead marke} and lower tin. The Tin Producers’ Association is contemplating an 11 per cent co-operative cut in pro- duction this year. Iron and steel prices are unchanged, although the undertone is:still weak. Production schedules moderately high- er. Building remains depressed, while automobile production schedules are not advancing at the pace of a month 2go. Bullding _material prices represent the only group out of 15 which ad- vanced. Cement prices slightly higher at Buffington, Ind. Total building volume disappointing, falling far short of the optimistic estimates set forth a few months ago. Other Commodities, Livestock prices declined sharpi: week. Paint materials, paper nn%ypzx.l?, fine textiles and vegetable oils were also down. The five groups which recorded no change were industrial, chemicals, hides and leather, ferrous metads -and fuels. Most important price changes: This ~ Previous All commodities. Agricultural Livestock ... Non-ferrous metals Textiles, coarse Vegetable ofls. CHICAGO LIVE STOCK MARKET CHICAGO, March 15 () (United States Department of Agriculture) — Cattle—Receipts, 400 head; compared week ago, good and choice fed steers and long yearlings, 50 lower; lower grades steady to 25 lower; fat cows and heavy heifers, 25a40 down; cutters steady to strong; butcher heifers and light heifers and mixed yearlings steady, after losing early advance; bulls weak; vealers, 1.50a2.00 lower; extreme top-fed steers, 15.50; yearlings and light steers, 15.25; very little above 14.75 after Monday; bulk, fed steers, 11.50a13.75; average cost week's steer crop approximately 12.60; replacement cattle scare, steady but slow; half fat, l,oog-pwng‘ 1 . “n._,l:dgo.m A Sheep—Receipts, 7, ad; market nominal; 6,500 direct; by the week, 118 doubles from feeding stations, 34,000 direct; compared one week ago, fat lambs strong to 25 higher; yearlin, fully 25 higher; fat ewes around 25 up; late, bulks, fat lambs, 92 pounds down, 10.50a11.00; top, 11.25; ear) top, 11.68; 10.50; shorn lambs, 9.5029.75; early top, 10.25; yearlings, 9.25a9.40; fat ewes, 5.2506.00; practical top, 6.25; feeding lambs nominal; few 80-pound shearers, 10.75 elr!g.fl Hogs—Recelpts, 7,000 head, includ- 4,000 direct; market about steady with yesterday’s average or 25a40 lower than early yesterday; top, 10.75; com- with one week ago, under 220 pounds mostly lower, with heavier weights 50a75 lower, hogs scaliny 35a50 e to be entirely safe. Few banks are wor- ried about their collateral loan accounts. The result is that abundant credit sup- plies do not now make second mortgage loans available to the prespective home builder, but they do stimulate the stock market. In time they will create & de- mand for bonds, which will bring in- creased municipal and corporate build- ing activity, but the process is a slow one, It is probably true the the most im- portant single element in the present business depression is the low level of residence construction. One reason for the lack of activity in the building of new houses and apartments is the scar- city of funds for junior financing, usu- ally in the form of second mortgage loans available to the prospective home still more lmmmnt act that second mortgage 1s hard to obtain be- cause many of those who have ex- tended such loans during the past sev- eral years have had bad experiences with them. Recent Over-Building. The clear fact is that there has been a good deal of over-bullding in Ameri- can cities in recent years, and the evi- dence of this is found in the marked and widespread increase in real estate foreclosures and tax sales. These forced sales constitute the real explanation of the virtual disappearance of new second mortgage loans. The scarcity of such Junior credit for building -is in reality a result of former over-building, and in only secondary degree a cause of pres- ent under-building. This situation will be helped by a general easing of inter- est rates, but probably the improve- ments resulting from that influence will come somewhat slowly. The most important development in the iron and steel industry is the waning vigor of its activity. When corrected for seasonal changes, steel activity has receded some 5 per cent in as many weeks. Pig iron production, more slug- gish than steel in its response to di- minish@g demand, advanced in Feb- ruary, but at a much reduced rate. ‘The vigorous recovery of steel activ- ity in the early weeks of this year gen- erated, perhaps, too much confidence. The halting of that recovery may in turn create too much discouragement. It is probably true that the most im- estimate as to the probable production of automobiles during the months di- the indications are come somewhat slowly. One of the evidences of this is found in the figures published by the Department of Commerce showing the changes in 0! received by makers of malleable castings. Large tonnages of these castings are used by manufacturers of automobiles, and or- ders for them must be increased or di- minished well ahead of changes in the production schedules of the makers of motor cars. For this reason the data for orders of castings constitute rela- tively reliable indicators to foretell com- ing changes in the volume of automo- bile output a month or two ahead. Low March Output Seen. ‘The noteworthy fact about the pres- ent situation is that there was no in- crease in the castings figures in Janu- ary—in fact, there was a slight de- crease, The conclusion which must be drawn from all has already been con- firmed by the preliminary show- ing that the increase 'in automobile production was distinctly moderate in February, and it seems probable that the March output will be relatively low. NEW YORK BANK STOCKS. NEW YORK, March 15 (Sj ).~ Trading in bank stocks “p;cmm shares “today was dull, with price 3 . Bankers' Trust at 1551, iy lup oo bulk, $4-98 pounds. 10350 a1 gipmrookiyn Trust, 855, up 5; were unchanged: Bank of America, 132; Bank of United States, 79; Chatham Phenix, 128; Nationai City, 237; Commercial, 583; Corn Ex- change, 229; Empire, 87; Pidelity, 77%; it N:"J‘?nlg.‘ 5675; A i Irving, /a; Manufacturers’, 147; N York Trust, 386; Ghelses, 84 Chain Stores Act Against Move for Regulatory Laws Large Business Firms Stir- red by Efforts to Promote Restrictive Legislation. BY J. C. ROYLE. State regulations are becoming a more potent factor in national business throughout the United States. So evi- dent has this become that many of the great distributing concerns throughout the country are taking steps to antici- pate and prevent the arousing of State sentiment against certain of their prac- tices. This is especially true of the chain store corporations. Considerable antagonism has been exe preased in various States against the operations of these chains, and it has made itself audible in recent sessions of State Legislatures. There have been calls for rigorous regulation of the chains in various States. The chains are taking steps to overcome this antag- onism before it gains momentum. Interest in Communities. ‘The plan most of the chains are fol- lowing is to make the managers of the local stores in each community liaison officers with the public. These mana- gers hereafter will be expected to take a prominent part in the civic life of the community and identify themselves with its progress. They will become { members of all the civic organizations and in that capacity bring to their fel- low members assurances that the chain I"‘"",‘“ noth‘fin:iglertnl to ttehe com- munities in whic ey rate. In many cases this will be supple- mented by extensive local “good will” advertising. One chain of shoe stores has devoted a million dollars to this purpose, It has formed an organization which will act as a clearing house for the material and advertising copy, but the managers of the local stores will place this advertising and establish business relations with the local news- papers thereby. The advertisements will not be placed through an agency, but will be handled direct by the man- agers. The radio is being extensively used in addition to the written word. On the other hand, the radio itself has been used to arouse considerable position and antagonism against the ins in some States. Good Will Campaigns. Some communities have already regu- lated or prohibited the operation of radio stations in motor cars on their highways. Still other communities are considering such action. The spread of this idea would be a severe blow to some radio manufacturers and motor car manufacturers who specialize in built-in sets in some of their cars. They are following the same general trend of good-will campaigns which have been gun by the chain stores in order to nullify this feeling. ‘These are only two of the many lines of industry which are affected or are likely to be affected by State sentiment and legislation. Special care is being used by manufacturers and wholesalers in distribution. Goods are being moved by methods which will tend to avold traffic congestion or the arousing of antipathies directed what are sometimes known as “road hogs.” All of these pelicies are laying stress on the value of tactful and efficient sales- men and other employes who come in direct contact with the public. (Copyright, 1830.) BANK IS EXPECTED TO REGULATE GOLD New International Agency Relied Upon to Aid World Prosperity. Asserting that a solution of the gold question will undoubtedly involve co- operation on the part of the leading governments in the world and their business communities, A. Iselin & Co., in a study of “Prosperity and the World's Supply of Gold” point out that it will be of interest to see how effec- tive an agency the new Bank of Inter- national Settlements will prove in con- tributing to a greater efficiency in the use of the existing gold supply. “National feeling and conflicting am- bitions as they exist today,” says the firm, “do not make it seem likely that the co-operation necessary to meet the problem will be taken unless or until the situation becomes so menacing that co-operative action is forced upon the nations in self-defense.” Discussing the possibility of a gold “shortage,” the review adds that “the import of gold into India has become of great importance to the rest of the world. lans know little of invest- ments or the use of credit and the vast majority still consider savings and capital safe only if in the form of gold or silver. Owing to her favorable bal- ance of trade over a comparatively long period, India has been able to satisfy public demand for the yellow metal. “It is variously estimated that Indian hoardings represent anywhere from three to five billions of dollars. When it is realized that the total monetary stocks of gold in the world today repre- sent a little over ten billions of dollars (and the total produced since the year 1492 represents twenty billions of dol- lars) it may be seen it a tremendous result would ensue if even a portion of this Indian treasure were put into pro- ductive channels of trade or finance.” pREATRSE, GRAIN MARKET. Wheat Rallies in Late Trading. Corn Values S8how Gain. CHICAGO, March 15 (#).—Wheat rrlcea showed rallying power in the ate dealings today, o largely to reports that Kansas had failed to re- celve more than a few showers. A notable bulge in corn values did much also to bring about recoveries in the wheat market, 8o that earlier losses were virtually offset. Receipts of corn in_all markets were surpris| fi light. ‘Wheat irregular, ranging from Y2 decline to Y, advance, compared o Py W up. , Yo T, and pro- a30 d:vn s | tends to prevall. Al £ CHICAGO DAIRY MARKET. CHICAGO, March 15 (#).—Butter firm; receipts, 9,306 tubs, prices un- changed. Eggs firm; receipts, 21,386 cases; extra firsts, 2515a26; m:a firsts, 3 et e v, 3% o 1930. Classified Pages 5 to 11 Ads STOCKS END WEEK LOWER, FOLLOWING HEAVY LIQUIDATION Easier Credit Fails to Stim- ulate Demand for Lead- ing Equities. SPURT IN OIL SHARES IS FEATURE OF TRADING Intervals of Moderate Activity and Strength Relfeve Down- ward Trend. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, March 15.—The stock market lost ground on the week. There were intervals of moderate strength and an attempt to bid up certain groups, most notably the oils, but the market as a whole was reactionary. As a market factor, the cut in_the rediscount rate of the New York Fed- eral Reserve Bank from 4 to 3)2 per cent fell flat. As a matter of fact, the reduction had been expected ever since the Bank of England took similar action last week. It was only recognition of the situation in the open money mar- ket, where this week there have been three ‘successive cuts in the rates on bankers’ acceptances. Reflecting the situation, call money loaned this week on renewal at the lowest in two years and on new loans at the lowest in almost four years. But the only market that has been stimu- lated by easy money has been that for bonds, where there has been aggressive buying of both the high-grade and the semi-speculative issues. Trade Situation Unfavorable. In the stock market t.ndea” h;:e been balancing easy money aga - clining commodity prices and unsatis- factory trade conditions, with the re- sult that the second factor has proved the more potent. When the bull mar- ket started some years ago, it was founded on easy money, but the situa- tion today is no parallel to that existi then. In part the abundance of credit is due to the policy of the Federal Re- serve, and in part it is due to a lack of demand from business. Meanwhile, the persistent fall in ag- ricultural prices has been worrying Wall Street. Several times during the week reaction in the stock market coincided with breaks in wheat or in cotton. Toward the close of the week the coppers were attacked on the theory that producers could not hold up the price of that metal when all other prices were headed downward. ‘Taking everything into consideration, the reaction: trend is not surprising. The notable g is that stocks have held as well as they have, and the only reasonable explanation is the insistent demand for equities, which those who have money to invest in securities con- tinue to make. The strength in bonds has come not so much from purchases by investors as from anticipation of such purchases by dealers who have been “stocking up.” In any event the better quotations for bonds have not been the result of any change of heart on the part of individual buyers. Oil Profits Hold Up. ‘There is little to say about the move- ments of stocks in detail. Perhaps the most significant development was in the rise in the oils. The basis for the im- provement has been the 1929 annual reports, practically all of which have revealed profits as high if not higher than in the preceding 12 months, and that during a period when the ofl trade was supposed to be suffering from ex- treme depression. Ofil stocks in their market price capitalize earnings at a lower rate than any other group of in- dustrials; they have been and still are in strong hands and it takes only a relatively small amount of buying to put prices up. Whether this move in the olls will fade away remains to be seen. Any discussion of the future of the market, however, always comes back to the question of to what extent, if at all, the popularity of common stocks has suffered from the great collapse in October and November of last year. Basic Conditions Unchanged. It is generally admitted that the 1929 panic, in its violence and in the shrink- age in market values, far exceeded that of other years. It was unlike previous panics, however, in that it did not grow out of banking or commercial troubles; nor was it the result of radical changes in economic conditions such as those which led to great waves of speculation when the method of transportation changed from canals to steam railroads in the early part of the twentieth cen- tury. It might have been supposed that with all of the new science and mech- anism of the age there would be a scrapping of old devices and, with it, an obsolescence that would affect large bodies of securities. This has not taken place so far. (Copyrisht. 1930.) PROSPERITY IS SEEN IN LATIN AMERICA Dr. Max Winkler Says United States Interests Are Aiding Business Revival. - Due largely to the increasing flow of American dollars to Latin Amer- ican countries, that region of the world with its boundless resources, is just entering an ‘era_of wealth and pros- perity, declares Dr. Max Winkler in a study made for the World Peace Foun- dation which has just been issued by the foundation under the title “Invest- ments of United States Capital in Latin America.” Old suspicions on the part of Latin Americans toward our inves- tors are fast disappearing, Dr. Winkler asserts, and a spirit of confidence now “Investments of United States Capital in Latin America” is one of a series of studies for the World Peace Founda- tion to carry out its policy of furnish- ing facts to the public in clear and undistorted form as a basis for further- msrlmgmluun . Winkler Ame: had increased from about $1,- 242,000,000 prior to the war to $5,587,- 494,000 at beginning of last T, & gain of nearly $4,500,000,000, or 340 per cent in the 15-year period. The Investments of United ithor of States Capital in Latin America” vice mfi&n of Bertron, Griscom & Co., York City. JOHN H. HANNA, President of the Capital Traction Co., who yesterday announced the declara- tion of a quarterly dividend of $1.50 per share, the same rate as voted in the first quarter. The court ruling against an increase in car fares made the divi- dend action of unusual concern. BUSINESS TRENDS - INEUROPE LOWER Depression Expected to Con- tinue Until Commodity Buying 1s Revived. Bpecial Dispatch to The Star. NEW YORK, March 15.—Cable dis- patches to the Business Week give the following brief survey of business abroad for the week ending March 15: Europe.—Discounting sharp local vari- ations, the present lower business trend in Europe is expected to continue until foodstuffs and raw material prices hit bottom, when will come the first real test of the degree of latent purchasing power in the country. No recovery from 1929 depression and possibly a bare maintenance of 1928 levels are at pres- ent hoped for. The week has brought a further 1% per cent reduction in the bank rates of England, Germany, Holland, Den- mark and Sweden, but continued re- laxation of short term credit is in marked contrast to the unresponsive- ness and inadequacy of long term capi- There is reciable improvement in political conditions in land and France, but Germany is facing a crisis. Observers at steel cartel meeting credit possibility of conversations with Ameri- can interests toward possible further al- location of exports market. fears American business depression will result in heavy dumping abroad, and is dis- to allocate to Americans compen- sating neutral market in return for abstention from the market. Great Britain. is still on hand-to-mouth revi- has pably Pt s ugh it is difficult to see any justification for it, for the reduc- tion in the bank rate actually reflects slack industry and trade. Business, no doubt, hopes for a stimulus of domestic trade and sees the possibility of a further reduction in the rate. ‘Wholesale &rloea have slumped 2 per cent below the February average and are now 12 cent below that of a year ago. ere is general market stagnation, with low forward orders for coal, iron and steel, cotton, jute, hides and leather, but wool is more confident. The Lancashire Cotton Corporation in- creased its capitalization to 12.5 mil- lion dollars; absorbs 5 more companies, making the total controlled now 76, equipped with 4.2 million spindles. Business generally has Snowden'’s observation on the tradition and refusal at time of business rl’l.lylll to indicate tariff policy before an- nouncing the final budget. Protectionist sentiment appears to be gro! , par- ticularly around the perpetuation of duties favoring post-war industries, with sentiment for further extension divided. Meanwhile, Graham, representing Brit- ian at the Geneva tariff truce confer- ence, is seeking to shape the conference toward stal tion and eventual re- duction of European tariffs on certain commodity jps-only, such as iron and steel, industrial equipment and st.:rple textiles. This suggests incipient differentiation of tariff policies by commodities. Clamor for stock exchange reforms, and among other things a closer scan- ning of new listings, compel listed com- panies to issue quarterly reports. Re- sumption of trading on the suspended Hatry stocks marks the final liquidation episode, but the position of Harman- Harrison groups is still considered un- solidified. France. ‘The incipient business slow-down of the last few weeks is proceeding very gradually. The new factor of flood damage is now estimated at $200,000,- 000. Locally, the catastrophe con- cerns chiefly the wine growers, sheep and cattle . There are consider- able industrial losses in textile, paper and knitwear mills, in tanneries and wearing apparel factories, but the whole dwuuur )Ill wehr:l.! as to be lrrelevu‘lé, Frencl prosperity, and rapi uwmt.ructm with contemplated gov- ernment credits affords prospects of new industrial outlets. Al recent record bond flotations, gilt-edge issues, such as 4 per cent Snoountering. dificuites, Whie Toreltn encoun w] ore! investments are heavy. Notwithstand- ing expectation that Tardieu will enact detaxation ex stock exchange continues moribund, and government is | da; nnll{ concerned over the apathy, fear- ing failure of approaching conver- sion operations and Young p! flota- tions. Reduced taxation, ly l:vorln;1 dome;t‘.lc investments, consid- ered early probability, once budget bill is passed. Germany. The resignation of Dr. Schacht cre- ated a moment nerve shock on the stock exchange, but there was almost te business is immediate recovery rica | evidently relieved by the replacement of a headsf personality which was complicating domestic and fore! rzhgm. and which :fi lessen g‘; possibility of friction in International : Bank, particularly since the r:‘umlnt- ment of a Prenchman as general man- ager. Benefit of final Young plan rati- fAcation partly vitiated by foregoing m)a AVIATION INDUSTRY IS BELIEVED FACING ERA OF EXPANSION Increase in Travel by Plana Held Likely During Summer Period. FOKKER SEES AIR FLEET GAIN IF SHIPS ARE' CUT Trade Leader Thinks Different Type of Armaments May Be Adopted. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, March 15.—Tony Foke ker, who has just returned from Eu« rope, predicts that there will be a large increase in the aircraft equipment of all nations if the Naval Conference, now in session in London, limits the tonnage of war vessels. That there will be considerable im« provement in the air-passenger service in this country, no matter what hape ns in London, is unquestioned. This ummer we will see air lines, carrying 16 persons in sleeping compartments, operating over the Western Air Express between New York and San Francisco on 28 and 30 hour schedules. At the moment, Mr. Fokker is inters ested in developing his 32-passenger Fokker monaplane so that it may be used in transcontinental service. These planes—F-32—are equipped with four Pratt & Whitney Hornet engines of 575 horsepower each. Here is _something for fact-minded ple. There is one registered plane operation today for every 19,800 per= sons in*the United States. And for every airplane registered there are 2,977 automobiles. No danger of satu- reached come. California, with 1,237, leads the coune try in the number of tered air- planes. New York, with 1,160, is sec- gefl.o In the whole country there areé The Ae;to‘n:ufied lfil’émher of Com= merce, which suppl these figure says that of the total number fi licensed planes, 6,645 are in actual op- eration, while 3,095 are private planes, used occasionally, Not so many, but in numbers about where the automobile was in 1904. Visiting Mexico. s Mexico is much talked about, but rarely visited, rby Americans. Five years ago, & committee on cultural relations with Latin America was formed and an annual visit to Mexico City in the Summer was inaugurated, During the last four years scores of educators, journalists, ‘lawyers, business Together for 1wy weeks in. the Suraces for two e er, They have seen firsthand_and heard lectures from the leaders of Mex= ican life—educational, artistic and gove ernmental. This year another seminar will jour= ney to Mexico City in July. It will be led by Prof. J. Fred Rippy of Duke Uni= versity, Prof. Chester Lloyd Jones of Wisconsin, Carlton Beals of Mexico, Dr, Ernest Gruening of Portland, Me., Paul U. Kellogg, editor of the Survey. . “I know of no finer way for a busi= ness man or woman to spend a wonder= ful vacation, and a most profitable oney than by taking in one of these Mexican seminars in July,” sald Hubert C. Hering of New York, secretary of the seminar, which is non-profit-making and co= operative. 2 This year Mexico, with & new admine istration in power, ‘should prove pare :lcul-rly attractive to visiting Amere cans. * “Money Doctor” Returns. reau of International Finance of Prince= ton University. The establishment of this bureau hap- pened i : James Theodore protested | Prin on the way. To commemorate his memory a fund of $500,000 was given by’ his family for the Walker Foundation in International Finance, contingent, however, upon another $200,000 being raised the university, for & chair ‘to be filled by Dr. Kemmerer: This fund now has been raised, and Dr. Kemmerer returns to a much larger work than the one he formerly held as professor of finance. As the fund is unrestricted, it will give Dr. Kemmerer a rare opportunit; Ior research in a very important fiel u world-famous Princeton professor. “Townless Highways.” Benton MacKaye wants the American mple to brush away mental cobwebs that the motorist lod1 thway,” complete] lestrians, for the motorist and kept free from e::tr‘y ancrmd hp:':nt except the filling stations and restaurants necessary th'er }lz)hmgx :idnvl‘e.nlénee. =i regional plann! expert sug- gests four specific ob}:c‘nm for the townless highway: First, to abolish the motor slum, or road town, and develop the rural way- sldsee env‘!’mr;‘?elfil;n N cond, stimulate the growth the distinct community, eomp-ct.ol; planned and limited in size, modeled somewhat after the old New Engiand village aor 't.:e n;t’)dernuf:dbum: ¥ Third, relieve throt and the local town from un‘::m congestion and other sources of frice Yo, to ins alike K ure safe to the through motorist and to local pop= ulation. Mr. MacKaye believes that a highway policy on such is ba with national features <o) present~ (Copyright . b prFisht. 1630, by North American News- PROPOSED BUILDING. : NEW YOI March 15 heavy hficm mm country in the oy e I W W intaining & ‘oady oaurect Ty with $71,782,000 and $155.950,000 week last