Evening Star Newspaper, April 13, 1930, Page 73

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News of Markéts Pages 1to 4 FINANCIAL AND CLASSIFIED he Sunday Star Classified Pages 5 to 12 Ao Part 6—12 Pages BANK STOCKS LEAD INDAY'S TURNOVER OND. C. EXCHANGE Washington “Blue Chip” Is- sues Prove Feature at Quiet Session. GAS COMPANY DECLARES QUARTERLY DIVIDEND Local Market Will Be Closed Good Friday and Next Day Also. \ BY EDWARD C. STONE. ‘Three high-priced local bank stocks appeared on the board during Saturday trading on the Washington Stock Ex- change, all “blue chip” issues, so to speak. American Security & Trust Co. stock was the first to change hands, figuring in a small sale at 42515. Next to appear on the list was Wash- ington Loan & Trust, two five-share lots changing hands at $500 per share. The other bank stock was National Metropolitan, which sold ex-dividend to the extent of 12 shares at $375. Other trading was quiet on the ex- change. Lanston failed to furnish the fireworks it had on Friday. Just four shares changed hands at the new high for the year of $125. The low for the year in 'this issue is $113. On Friday the stock jumped from $117 to $125. Lanston pays 8 per cent, the company is splendidly managed and an excellent report is expected at the annual meet- ing to be held on May 1, in Alexandria. Merchants Transfer & Storage pre- ferred sold yesterday at $100, Barber & Ross common came out at $16, Mergenthaler Linotype moved at $108 and Peoples Drug Stores preferred again registered $108.50. After call, one of the recently active issues, Emerson’s Bromo_Seltzer sold at $31.50 and Po- tomac Electric Power 515 per cent pre- ferred brought $108.50. Railway & Electric preferred sold at $97. Governors Vote Holiday. In the bond division Capital Traction Bs sold at $96, Anacostia Potomac Rail- rTuad 55 sold at $83.50. Unlisted depart- ment quotations changed but little dur- ing the week. The asked price was raised on Chapin-Sacks 8 per cent pre- ferred to $110. ‘The board of governors has voted to close the exchange on Goed Friday and on the Saturday following, the New York Stock Exchange having taken similar action. Officlals have received many inquiries lately as to whether the handsome new quarters are open to the Ppublic. In reply it should be stated that all sessions are open to the public and that visitors are always cordially wel- comed. Seats are provided especially for visitors, the new headquarters being on the sixth floor of the Washington Building. It was announced on the exchange yesterday that the directors of the ‘Washington Gas Light Co. have de- clared the regular quarterly dividend of 90 cents per share. This disburse- ment is payable May 1 to stockholders of record on April 15. Childs Boosts Net $1,000,000. ‘The Childs Co., largest chain restaur- ant system in the country, has found it more profitable to give customers what they want than to attempt to educate them to “meatless menus” and other things officials of the company thought they ought to have. Were it not for the sale of real estate last year, Childs would have been $50,000 in the red, William H. Barber, principal director and acting head of the company, told Sales Management. As a result of the new policy, launched after a reorganization a year ago, net operating income of 1929 Jumped $1,081,483, he said. The in- creased use of consumer advertising was also a factor. Heard in Financial District. George Wood of Chicago will assume his duties at once as president of the Washington Gas Light Co., having been elected to that position yesterday by the board of directors. He succeeas Ord Preston, who recently resigned. More than 200 bankers are expected at the annual Spring dinner of the Dis- trict Bankers' Association tomorrow evening at the Columbia Country Club. Senator Pat Harrison and Attorney Carter B. Keene are the speakers. General Chairman George O. Vass will outline plans for the coming Ashe- Head of W. B. Hibbs & Co., who has been kept from work for several weeks because of a severe cold, has returned to the local financial district. The dean of Washington brokers has fully re- covered his health. CROP RESTRIGTION POLICY ATTACKED Opponents of Farm Board Plan Say Move Has Piled Up Surplus. BY J. C. ROYLE, Wordy warfare is being waged here not only between the Government and business men, but between departments of the Government as to the value of restriction of farm products, The Federal Farm Board is vigor- ously urging reduction of crop acreage by the farmers. Opponents of this plan assert it has resulted in the piling up of a surplus of wheat and cotton and some other products which would have moved into consumption had it not been for the efforts of the board. They point out that what the board proposes is exactly the thing which President Hoover, ‘as Secretary of Commerce, fought bitterly—that is, Government re- striction of production. This was di- rected principally at the English rub- ber producers who for a number of years regulated output under the Ste- venson plan. Coffee and Rubber. Similar opposition has been voiced against the valorization of coffee by the Brazilian government. British authori- ties, with regard to rubber, now assert that restriction in any shape or form is bad for the industry and that the real answer to the problem consists in encouraging new sources of outlet for_ rubber. Secretary of the Intetior Wilbur, in carrying out the administration plan for restricting oll production and con- serving natural resources, refused per- mits to prospect for oil on Government lands. A court decision has just held that he was without authority to do this. Restriction in the production of petroleum has never been entirely sat- isfactory, since the various factors in the industry could not get together on a plan for all to reduce output. Okla- homa is now under a reduced produc- tion quota, but this State order was re- quested and backed by the producers themselves. The final effect of the gas wasteage law in California, designed te conserve oil and gas and prevent overproduction, is still uncertain, with further court action to come. Men in textile trades admit that re- striction of production has not been effective in bringing about prosperity in that field. They point out, how- ever, that this situation is due to the fact that the country is overmilled and that many of the plants are anti- quated and impossible to operate on an economical basis. Farm Board’s Position. ‘The Farm Board announces emphat- ically that it does not advocate or sup- port the reclamation projects which would add cultivated acreage to farm lands. On the other hand, the Depart- ment of the Interior is active in the development or reclamation projects. Labor leaders naturally are strongly opposed to curtailment of production and workers today count more with business executives than they have ever counted in the past. This is because the executives realize that the workers offer them the best market for the ville convention at this meeting. The dates are June 5 6, 7 and 8. The party leaves here at 6 p.m. June 4 and Teaches home Monday morning, June 8. ‘While it is the longest trip the bankers have taken to their convention, the expense has been held down to last year's figure. Among the special guests at tomor- row night’s bankers’ dinner will be John W. Pole, controller of the currency, and Roy A. Young, governor of the Federal Reserve Board. MODERATE TRADING NOTED IN TEXTILES Special Dispatch to The Star. NEW YORK, April 13—Dun's Re- view today says: “Several factors have combined to prevent & full development of pre- Easter activity in dry goods, yet busi- ness has shown a decided gain over the volume of recent weeks. More ex- on in the next week is looked for, and merchants are stressing the attractive values offered as a probable ultimate stimulus to demand from cus- tomers. The general situation in primary channels does not differ es- sentially from the conditions lately ob- served. Conservative operations remain the rule, while there is considerable articles produced—and if the workers are not prosperous these articles are not sold. According to the American Federation -of Labor, the first quarter of 1930 saw more men out of work than any three months in the last five years. It holds that business would have re- covered before this if there had been no restriction of production and un- employment had not developed in con- sequence. " (Copyright, 1930.) o FINANCING VOLUME INCREASES IN WEEK Special Dispatch to The Star. NEW YORK, April 12.—New financing this week was not only heavier in volume than the previous week, but was charac- terized by the largest stock issue brought out so far this year, one of $60,000,000 preferred stock sold by the Republic Steel Corporation. Stock issues have been comparatively few so far this year, their paucity con- stituting one of the most interesting characteristics of the market for new issues for 1930, A summary of new ncing for the first quarter of the year shows less than complaint of the smaliness of the orders which are being placed, and also of the effect of low prices on profit margins. The trade is largely awaiting further developments in respect of employ- ment of workers, action on the tariff and the progress of crop planting, and caution is the rule.” Kansas Warned of Locusts. LAWRENCE, Kans, April 12 (#).— Eastern Kansas farmers have bees warned of an early invasion of the 17- year locusts. Cicadas have been dis- covered on the banks of the Wakarusa River by Prof. H. G. Hungerford, Uni- versity of Kansas entomologist. Teach Young Chicks to Roost. - OKLAHOMA CITY, Okla., April 12. (®)—Teach_chickens to roost early in life, the Oklahoma State Marketing Commissien advises. Chicks which get the roosting habit while young will grow up to be befter poultry, the commission & L] 3 25 per cent of the total was stock issues. Bond issues aggregated approximately $1,400,000,000, while stock offerings ex- ceeded $453,395,000. Compare that with stock issues in excess of $1,000,000,000 and bond offerings of $1,000,000,000, $100,000,000 in the first quarter of last year and the distinct change in trend of new financing this year is very apparent. Bond offerings have gained 35 per cent over a year ago, while stock offerings have dropped about 60 per cent. Reasons for the change are both economic and psychological. Low rates of interest, compared with last year, furnish an incentive to finance with bonds, while the break in the stock market and resultant loss of confidence militated against popularity of stocks, at least common stocks, as investments Stock financing last year was the largest ever done in any year. The volume is estimated at approximately Two dollars in stocks $7,000,000,000. were offered for every .dollar in.the orm of bond financing.” . .. | - WASHINGTON, D. C 3 SUNDAY MORNING, APRIL 13, 1930 SEASONAL REVIVAL INEUROPE'S TRADE LATER THAN USUAL General Trend Toward Im- provement Is Noted in Leading Centers. INVESTMENT ACTIVITY SHOWS RECENT GROWTH Money Rates Stiffen, With Demdnd for Securities on Broad- er Scale. Special Dispatch to The Star. NEW YORK, April 12—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending April 12: Europe—Seasonal revival is later than usual and is not comparable in degree with last year's pick-up, but the general trend is one of improvement. In England business expansion awaits announcement of Snowden’s budget; in France, particulars of Tardieu’s promised tax reduction; in Germany, political stability for realization of financial re- rms and farm relief. Money has tightened somewhat in England, but remains easy in France and ! Holland and comparatively so in Ger- i many. Recent renewed investment ac- | tivity continues. This fortunate devel- opment is indispensable to the revival of capital expenditures and of de- pendent interests. Sentiment is not buoyant, but it is manifestly more con- fident. Improvement Noted. Great Britain—The incipient in- crease in industrial activity during re- cent weeks is noticeably widening, though it has not yet deepened. Coal has entered a seasonal decline, but earned profit during the first quarter is calculated by the department of mines to be $70.000,000. The situation in iron and steel has improved slightly; cottons are better, and Manchester trade is reviving; wool is more freely bought, since no serious interruption over the wage dispute is feared now. Greater Wall Street activity has com- bined with local factors the supply of money and to stiffen rates. Business feels that dearer but ample money is preferable to a nom- inally cheap bank rate with scarcity of funds. Volume is lower on the stock market, but the tone is confident and buyers are receptive to current and coming capital iseues. Although the agreement to restrict tin production is worldwide, the market is baffled by the failure of statistical position and prices of the metal to re- flect curtailment of production. It is rumored that a bank consortum has bzen formed to buy and hold tin for a rise in price. The coal bill, after last- minute amendments, passed the Com- mons as a result of a Labor-Liberal working agreement, but it is expected to undeigo radical revision in the House of Lords. Political Uncertainty. Germany—Political uncertainty con- tinues to be the outstanding feature of the general situation, with defeat of tion of Parliament, and new elections a constant possibility. Hope that the Bruening government would end the deadlock over pressing tax measures is unrealized. The goveinment has given up all attempts to increase workers’ contributions toward the dole deficits, but is caught in the opposite dilemma of militant opposition irom Bavarians over the increased beer tax, upon which the government depends for nearly one- half of the increased revenues, but which falls primarily upon Bavarian industry. Bruening in _aggressively tackling current problems has declared for priority of the finance bill over farm relief measures and is backed by Moldenhauer's refusal of responsibility for the treasury to meet cash liabilities next quarter-end unless tax measures are before Easter, There are indications that business revival is awaiting political stability. Despite political uncertainties, recent strength on the bond market has spread to the stoc kmarket, which sustained higher levels over the week end. Farm roducts values recovered slightly fol- wing tariff increases, although prices of raw materials and manufactures tend further to decline and coal and steel activity is unsatisfactory. Following the recent striking bank and shipping consolidations, the auto- mobile industry is believed next in order, but not through mergers within the industry other than incidental. Rather, strength will come fran in- corporating automobile and steel in- dustries, the latter eager to reorganize and strengthen this important customer. An advance scored by stocks of the leading manufacturers—Daimler-Benz, Bayerische Motorenwerke and N. A. G. —evidences approval of public opinion. Similarly, further absorption of coal mines by the steel industry is expected to result from difficulties in reconciling independent and mixed interests during negotiations to renew the expired Ruhr Coal Syndicate, which was prolonged by the minister of economics in order to give time to complete a new agree- ment. Activity in Frauce. Prance — Business, which -showed scarcely more than a seasonal Winter 1ag, notwithstanding worldwide depres- sion, is resuming general activity. The stock market is stirring. Optimism is stimulated by final ratification of the Young plan, particularly by official an- nouncement that the bill providing $60,000,000 tax reductions and favos roduction and financial operations, will submitted to Parliament in mid-April. It is expected that the dividend tax on domestic shares will be reduced from 18 per cent to 15 per cent, on foreign shares from 25 per cent to 20 ver cent, while the tax on security transfers, based on the average marke; price during the preceding year, and ncw the principal burden suffocating the stock market—since, in extreme casss, the tax can exceed dividends—is expected to be reduced from 4 per cent to 21 per cent. ‘Textile manufacturers in the Lyons district joined Calais and other centers in protest of United States lace duties. ‘The government has instructed its Am- bassador in Washington to protest, and ‘Minister notori. Commerce - ously hostile to the United States, has stated publicly in the French Senate that the new lace dutles are charac- teristic of United States policy and eimed to stifie imports from Europe. French opinion is uniformly convinced of unfair treatment by the United States in demanding paym~nt of war debts while discriminating eainst »x- rom of Prench products, which are ai- eged to be necessary to enable iiance to pay. There 's considerable senti- ment for retaliation. Negotiations between the United States and France on_double. taxation are announced to begin early in May. It is likely to ‘be an arduous task if present feeling tinues to prevall. o coutract ! the new Bruening government, dissolu- | ‘con- m! " alas Business News in Retrospect Washington Real Estate Bonds Are Again in Demand. Local Investment Situation Has Been Improved BY I A. FLEMING. Financial Washington has eliminated one great evil in the real estate and financial line, and that, too, probably, for all time. Reference is made to the habit acquired by some financial con- cerns aiding in the upbuilding of the city of taking out permits for big of- fice buildings and apartments for an leged valuation of very much more than the actual value of the struc- ture and then is- suing mortgages based upon the al- leged valuation. Many of these structures have been sold under the mortgages and | have failed to real- ize anything like the face value of bonds issued under the mortgages. Many of these bonds have becn sold here, others have been shipped to New York and other markets. Many bonds on capital buildings are being quoted these days at far below their issue price, presaging trouble and loss at maturity. Publicity has been given to some of these bond issues and the manner of their overinflation, not only in this city, but all over the country, and it is this fact that leads to the belief that this kind of financing is over for all 1‘ time. i L A. Fleming. Bonds Are Wanted. Bonds are in splendid demand today, | that is, safe, good issues paying 5'% to | 6 per cent. TInvestors are searching for the right kind and bankers also. One of the most conservative bankers in the city made the remark a few days ago that “he would rather have a good real mortgage on Washington realty as se- curity for a loan than securities.” Sav- ings departments of banks are carrying millions of the people’s money until such time as a desirable investment can be found for the owners. Small bonds covering city homes, say for $2,000 to $10,000, are scarce, while | the lack of activity in building restricts | the issuance of notes in large blocks. Money is very plentiful and is offered | in exchange for good bonds on a 60 to | 65 per cent face value basis at 5% to 612 per cent. Life insurance companies offer money at the lower rates. Stock exchange bonds are attracting more attention. Almost without ex- ception they are splendid investment, perhaps a little high at this time, but they seem to be worth it. The economist of the National City BUSINESS PARTNERS WELL KNOWN HERE C. A. Camalier Is Bank Director and R. E. Buckley Head of Building Association. ‘The new leather and luggage goods shop of Camalier & Buckley will cele- brate its opening on Wednesday, April 16, at 1141 Connecticut avenue, just g above the May- flower Hctel. The proprietors of the new_establishment, Charles A. Cama- lier and Robert E. Buckley, are well known ' in local | business circles having been asso clated for many years with two of Washington's _old- st retail stores. Mr. Camalier was manager Becke;'u (}:nher Goods -y C. A Camaller. T00F urr':in 'hc was en| for over a quarter of a u“t“ry-!lfi is director of the Liberty National Bank and is & member of the Colu:lnblé‘l Coun an = l'anumclulfl and other leading or- ganizations. Mr. Buckley has served the Palais Royal department store in the capac- ity of treasurer and general superin- tendent, and his by Elimination of Inflationary Practice. Bank, Mr. George Roberts, has this to say of the situation in money itself: “An outstanding development is the sharp drop that has taken place in in- terest rates, marking the end of a period of credit strain and bringing rates to the lowest point in several years. “In its bearing on general business conditions the advent of really cheap money has been widely heralded, and rightly so, as the most important and promising feature in the general situ- ation. That cheap money is a tonic for the recuperation of business has been proven by long experience. It works in a variety of ways, by encourag- ing commercial enterprise, new building construction, public utility, railroad and | municipal_ projects and the stock and bond markets, including the sale of foreign bonds, which assist the financ- ing of our export trade.” Some Improvement. For all this, local bankers report a better demand from merchants who are now asking assistance from their banks in meeting their bills for Spring stocks, So far this year there has been very little Spring and as a result shelves are too heavily loaded with seasonable goods, for which they are awaiting seasonable weather. Bankers are get- ting 5’ and 6 per cent. Some of the larger institutions are using large amounts in the call Joan market again, exercising, perhaps, a little more scrutiny, although the call loan rates are not tempting to the out- side bankers, Large trust companies must be prepared to meet heavy drafts on their funds and the call loan is a medium of readiness for the employ- ment of funds temporarily, whence they may be quickly transferred where needed. Big Bankers Talk. April 28, 29 and 30 at Memphis, Tenn., will be held the convention of Reserve City Bankers, one of the most important annual gatherings of the fraternity. ‘The executive head of this associa- tion is Joseph R. Kraus, vice president and executive manager of the Union Trust Co. of Cleveland. The vice president is Cyrus A. Barr, vice president of the Continental-Illinois Trust Co. Memphis §s planning old Southern hospitality for the visitors, ute when' business sessions are not held has been scheduled for entertainment and “if you are there, you will be wel- come to”it.” The program schedules many of the | leading bankers of the country. Rep- resentative McFadden will discuss, “Shall the Profits of the Federal Reserve Banking Ssystem Be Prorated Among the Stockholders?” All natic banks are shareholders. VIRGINIA TOBACCO SALES SHOW GAIN Increase in Amount and Price Paid for Crop Occurs This Season. Special Dispatch to The Star. RICHMOND, Va, April 12.—Total producers’ sales of leaf tobacco by Vir- ginia warehouses for the 1929-30 sea- son amounted to 126,787,712 pounds, valued at $22224,000, according to re- ports to the commissioner of agriculture. During the 1928-29 season 117,254,824 | pounds were sold for $18,923,000. Sales were slightly less than had been esti- mated earlier in the season. The qual- ity of the crop was generally good and prices of all types, were above those received for the 1928 crop, the average for all types being $17.53 per 100 pounds, compared with $16.14 per 100 pounds for the previous crop. Fire-cured sales for the season amounted to 92,949,878 pounds at an average price of $17.36 per 100 pounds, compared with 85,361,411 pounds sold the previous year for an aver price of $17.07. It is estimated at the Virginia_sales of this type of tobacco include North Carolina tobacco brought into the amount of 13,000,000 pounds this season and 12,000,000 pounds for the 1928-20 season. This credits Vir- ginia with a production of this type amounting to approximately 80,000,000 pounds for 1929 and 73,000,000 pounds th; previous year. un-cured sales to April 1 amounted to 4,096,688 pounds at an average price of $13.25 per 100 pounds, compared with 4,941,043 pounds sold last season for an average of $10.07 per 100 pounds. record of service covers some 25 years with that in- stitution. He was recently elected president of the National Perma- nent Building As- sociation and is a member of the Cosmopolitan Club, Board of Trade and Chamber of Com- merce. R. E. Buckley. —_— 572 BALANCE SHEETS SHOW DROP IN CASH Analysis of the balance sheets of 572 representative corporations in 31 differ- ent industries, by the Standard Statis- tics Co. of New York, reveals that as of December 31, 1929, cash had decreased 8.9 per cent in a year, inventories had gained 11.5 per cent, and value of plants, less depreciation, had increased & per cent. The following table shows the_dollar v-;ut of the three items as of December 31: - 1929, 3 $2,426,081.000 $2.661,536.000 017! 3.936.522.000 10308187000 8.914,307.000 No real element of danger is to be drawn from this' contraction in cash over the period, the survey continues. To an appreciable extent it reflects, in individual cases, expenditures for plant expansion, installation of new equip- ment or purchases of new units. Commenting on the increase in in- ventories, the analysis holds that, mak- due allowance for secular trend, gsum'y'n inyentory position has stead- ily become less and less satisfactory. Its' present condition is by no means pronouncedly uncomfortable, but it will not bear further aggravation without danger. ‘The increase in the value of plants would indicate that the machinery of industry stands ready to adeguatel keep pace with any business revival, even should it approach the peak levels of last year. This feature of the situa- tion is constructive as relates to certain individual enterprises in that it means further Leavy outlays for eqmmem over, the .next several months not be fiecessary. On well ‘tend to contract machinery during the neax jerm. e gesz AUTOMOBILE OUTPUT IS BEING INCREASED Factories Are Regulating Produc- tion to Conform With Dealers’ Orders. Special Dispatch to The Sta: DETROIT, April 12.—Reports of automobile factories on current busi- ness are to the effect that the last week has been the best the trade has experienced since last September. This is the second consecutive week to be so designated, but excepting the lowest- priced makes, sales levels and produc- tion are still far below the peak rate of 1929, which made itself felt in April one year ago. Ford scheduled output is being boost~ ed to average 9,000 cars a day for this month—a development figured on not until May in previous statements issued by the company. The other plants, including the G. M. C. group, are keep- ing operations going at a steady rate, but the number of cars that are being manufactured follows closely the retail requirements, as shown by reports from the sales divisions. A relative idea of present conditions is shown by comparison with the Ford rate of 12 months ago, which was slightly above 8000 cars daily. His competitors, and there are four or five more of them now that at that time, are maintaining fair averages, but they are much below the 1929 volume. Among them, the three-day and four- day week is being resorted to, the situ- ation being such that quick changes can be made should greater quantity be _called for. ‘The selling picture seems still to be pervaded by concentration of :ffort on used cars and overproduced new cars to which sales divisions devoted the last month. The sales executives are waiting for fine weather and more gen- eral business activity to restore the real Spring buying atmosphere usually ex- perienced at this time. — 3 sefght peaks in Colorado are qu’f or wml-kl above sea level. A » " glligator- hide crop is predicted by, Texas trpppers, Every min- | excepting _burley, | RECOVERY N TRADE NAYBE POSTPONED INTILEARLY FAL Cautious Attitude of Mer- chants Held Cause for De- lay in Improvement. GAINS IN STOCK PRICES ARE PUZZLING FACTOR Bankers Declared Well Satisfied With Present Condition of Credit. BY CHARLES F. SPEARE. Special Dispatch to The Sta: CHICAGO, April 12.—The conclusion that an observer reaches after making a coast-to-coast survey of the business situation is that the period of pro- aounced and prolonged recovery so free- ly predicted a few months ago is likely to be postponed until the late Summer or early Autumn. Conditions nearly everywhere are better than during the Winter. The turning point in the decline came on March 1. However, subsequent gains {in those lines that had the best prom- ises, as well as in others that had flattened out, have been disappointing. ‘There. is a conspicuous inertia in most of the large cities, with retail sales well below normal for this season and with wholesale mercantile operations reduced both by the conditions in indus- trial employment and in the agricul- tural districts and by a continuing state of mind with the public at large that makes for cautious and discriminating buying. Bankers Exhibit Confidence. Bankers that one meets are more con- fident than merchants. They see a state of credit that eliminates any serious dangers at those sources notoriously troublesome in previous eras of depres- | slon. The banks in this Federal Reserve | district are rediscounting on a smaller |scale ‘than at this season in over a decade. Effects of declining rediscount rates are gradually seeping into the business world, but of money, like many other commodities, there is too large a Mgaply to permit a satisfactory return on_it. Between San Prancisco and Chicago one encounters the conditions caused by low prices of metals, as in Utah and Colorado, with similar influences over- lapping these States from Montana and Idaho, while in the prarie country the situation grows out of the unsolv- able problems of the farmers. After finding it everywhere from New Orleans to San Francisco, one discovers in Towa and Nebraska the universal complaint | that farm lands are unsalable and city | property lacks buyers. It is not too much to say that the sorest spot in the average American community today is in its real estate conditions. This as much as any other one factor makes the people feel poor ;:lgkfnhlblfil the lending powers of the Caution Rules the Interior. Naturally, the interior of the country, more than the Pacific Coast, which is temperamentally optimistic. cannot un- {derstand the point of Wall street in steadily bidding up the prices of indus- trial and public utility stocks in the face of discouraging business prospects and some retrogression in lines that pointed {upward a month ago. If the banking attitude in New York on the market |is one of confidence, in Chicago it is one of caution bordering on apprehen- sion. No one worries a great deal even if such shares as American Telephane, U. 8. Steel, General Electric or West- inghouse Electric seem to be again over- discounting profits or impending financ- ing, but conservative people have mis- givings when they see other unseasoned or “green” issues duplicating the per- formances of last August and Septem- ber and know that their market spon- soring is none too strong. ‘The contrary movements the past two weeks in stocks and in,bonds, both old and new, reaffirm the belief that the public at large is still enamored of the one, in spite of being jilted so abruptly last Autumn, and is still quite cool to- ward the other, Railroad Changes Marked. Coming the other day across the Lucin cut-off, that remarkable piece of railroad. engineering by which E. H. Harriman spanned Great Salt Lake in- stead of going around it, one thought of the days of adventure and romance in steam _transportation and how they have given way to the rather dull grind of producing larger trainloads, more car miles per day and more engine miles per unit of fuel. Except for the mileage built in Florida in 1925-27 by S. Davies Warfield, who was as enthusiastic over that part of the country as James J. Hill had been over the Northwest or B. F. Yoakum over the Southwest, no important additions to American rail- road systems have been made for nearly 20 years, Obviously the necessity for lines that reach out and into new territory has been lessened by the overbuilding in the first 10 years of this century and latterly by the ease in short-distance transportation effected by the motor truck and motor bus. It is interesting to trace the history of some of the out- standing projects that figured in what may be regarded as the final era of adventure in railroad building in the United States. New Elements in Transportation. ‘When one looks back over the record of major railroad building projects in the past 20 or 25 years, he finds that nearly all came to grief before they were finally stabilized. - This leads to the conviction that the Interstate Com- merce Commission acted with wis- dom, though possibly with prejudice, when it denied Mr. Loree the right to build his cherished Pittsburgh line. If adventure and romance have gone from . the railroad industry, the ele- ments of WPQ and capable administra- tion and of & sucessful fight against competition from the outside have taken their gm Rallroad gross earnings seem have reached a point where for sometime there will be little annual gain . com with the increase of nearly 100 per cent. That came with each 10-year period before the war. ‘The railroad man’s job today is to refine his operations and to keep his transportation cost low. This refine- ment may also have been carried as far as practicable, as there is little pros- pect of a broad program of railroad consolidation except in the East; cer- tainly there has develo) no evidence of demand for it in sections of the country through which this writer has been traveling the t month. _The speculative qual of railroad common stocks steadily is disappearing. . (Coprgskt, 1930.) Promoted ROBERT H. LACEY, Who assumed his duties during the week as cashier of the Columbia Na- tional Bank, has been with the institu- tion since 1923. He is a graduate of the American Institute of Banking, a World War veteran and a native of this city. —Harris-Ewing Photo. DEMAND FOR BONDS | Prime Investment List Suf- fers in Competition With Common Stocks. Special Dispatch to The Star. NEW YORK, April 12—It is becom- ing more and more evident that the major factor affecting bond prices over portant as they are, nor even the trend of commodities, influential as that is, but the competition with the stock | market. For a time early in the year bonds were in active demand at rising prices, a demand that came largely from deal- ers, but one which advanced quotations just the same, and it looked as though the investment market was in for a pe- riod of pronounced strength. ‘This week, however, and to a less de- gree in the preceding week, the bond market has been heavy, and while the averages still are far above the 1930 low they are down substantially from the high. Moreover, there is no individ- ual investor interest in the bond mar- ket. Whatever buying there is comes from institutions. The reason, of course is the heightened interest in the stock market, the growth of speculation in equities and the re-establishment popular favor of the theory that a di- versified list of stocks not only assures | reasonably safety, but a good opportu- nity for capital appteciation. Low Yields. How long this condition will con‘®iue it is impossible to say just now. The stock market may have a substantial reaction and the new crop of specu- lators may be hurt, just as happened last Fall, and then thére may be a re- turn to bonds. But of all this there is no sign so far, It had been.thought that the lesson of last October and No- vember had been so thoroughly learned that there would be no need of repeat- ing it; but the fact is that today, just as in 1929, there are plenty of industrial which the yield at present prices and to be had on high-grade bonds. As far as money goes, there has been {no_important ‘change during the weck Call money has ranged between 3!, and 4 per cent, and time money is about where it was a week ago. There is no obstacle in credit conditions to a fur- ther advance in fixed interest-bearing securities, particularly those of medium grade. The speculative fraternity has shown no concern over the increase in brokers’ loans, nor is there any reason to_believe that the bankers feel any differently about the matter. Certainly, the Federal Reserve has not taken any steps to restrict the supply of credit. The decline in commodity prices has been checked temporarily, but there has been no significant rally vet. In Dun’s list of wholesale quotations of the 52 changes on the week, 25 were on the side of advance. Meanwhile there has been an in- crease of new offerings which, of course, has not been helpful to the market for seasoned issues. The total of new bond issues this week was $182,111,000, com= *| pared with $85,180,000 a week ago and $89,486,000 in the same week of 1929. Of this week's flotations one of the two largest was a short-term issue, the six- month 5 per cent treasury notes of the government of the Argentine na- tion to a total of $50,000.000. Priced to yleld 5 per cent, and attractive only to banks and financial institutions, this offering is ot interest because it is the largest single piece of short-term financing for a South American gov- ernment in seven years. South American Bonds. South American obligations suffered severely in the market break six months ago and have not been popular since. Probably the turn has now come, for not only was the Argentine new issue placed, but it was announced that negotiations have been entered into be- tween the state of Sao Paulo (Brazil) | and London and New York bankers for a large coffee loan, a part of which is to be placed in the United States. In- cidentally, the state of Sao Paulo is said to have decided to reverse its policy of accumulating coffee in an effort to maintain the price, an ex- periment which resulted disastrously, just as did that of Cuba, with sugar and that of Great Britain with rubber, ‘The other important new issues of the week was the $50,000,000 of Erie Railroad refunding and improvement 5s offered at a price to yield the buyer 5.25 2" cent. This was about in line with the market for railroad obligations of that grade. Bonds in this group have not been affected by the falling off in car loadings or the decrease in gross and net income the railroads have been reporting as compared with re- sults of a year ago. The margin of safety is still large and the general ex- pectation is that rail traffic will pick up in the second half of the year. Meanwhile bonds of this type offer ex- ceptional investment opportunities. (Copyright, 19%0.) NORTH CAROLINA BANKS ARE TO CONSOLIDATE Special Dispatch to The Star. GREENSBORO, N. C, April 12.— W. S. Ryland, president of North Caro- lina Bank & Trust Co., with head- quarters in Greensboro, N. C., an- nounced his company has purchased control of the Farmers' Banking & Trust Co., and the Edgecombe .National .” Bank, both of Tarboro, N. C., and the will consolidate. iwo institutions LAGS DURINE WK the longer term is not money rates, im- (! in! and public utility common stocks on | present dividend rates is less than that | BRAZILIAN COFFEE PRICE - FIXING PLAN MAY BE ABANDONED State of Sao Paulo Expected to End Valorization Scheme. LOAN WILL PLAY PART IN DETERMINING POLICY Financing ‘of Present Situation Contingent Upon Free Mar- ket in Future. BY JOHN F. SINCLAIR. | Special Dispatch to The Star. NEW YORK, April 12.—Are we see- ing the end of the coffee valorization of 1 Brazil? It looks that way now. e state of Sao Paulo, the coff center, in urgent need of money, 5 ses gfil:zl% considering dropping the coffee -fixing, as a price.: condition to securing The loan is being arranged by Speyer Co., Bancamerica-Blair Corporation and Dillon, Read & Co. in the United States and Baring Brothers, Limited; N. M. Rothschild & Sons and J. Henry London. About 16- ee, valued in excess e been stored as se- Schroder & Co. in 1500,000 bags of cofr of $200,000,000, have curity. The important thing, however, is that the state of Sao Paulo is expected to agree that within a maximum period of 10 years it will liquidate its accumu- lated stock of coffee and will place fu- ture crops upon the market currently, ceasing to hold them in order to main- mg prices. n July 1 next all the unsold ac- |cumulated coffee remaining will be | placed against the loan. - A definite loan announcement, mark- ing the death-knell to the coffee valori- zation plan, is expected soon. Eastman’s Warning, Regulate all holding companies buy- {ing railroad securities or be prepared | for an uncontrolled and unsatisfactory | railroad situation! This is the warning of Joseph B. | Eastman, interstate commerce commis- sioner, who has been fighting to bring the holding companies under the domi- nation of the Interstate Commerce Commission, just as the railroads are. ‘The commissioner's attack was di- | rected particularly against the two big | holding companies organized so far by railroads; the Pennroad Co., owned by the officers of the Pennsylvania Raile road, and the Allegheny Corporation, controlled by the Van Swe.ingen Broth- ers of Cleveland. | _Mr. Eastman says | Sweringens, working | holding companies, have not only se- | cured control of nea: all the lines that were allotted to them by the In- terstate Commerce Commission in the East, but, in addition, they have pur- chased large stock holdings in roads that were not assigned to them, the Missouri Pacific, for instance. The commissioner's position is that if rallroads are under the control of the Interstate Commerce Commission, the agencies of those railroads (rallroad | holding companies) should be, too. | Otherwise, confusion worse confounded | Wl resul. Congress is studying the subject now. Newspaper Advertising. Newspapers received more than $260,- { 000,000 last year from their advertising columns, according to an estimate of { the Bureau of Advertising of the A. N. | P A, | While the publication of the individ- | ual accounts is not allowed, it is known | that 23 companies manufacturing auto- | mobiles and trucks put $64,245,000 into newspaper advertising: 19 tobacco com- panies put another $21,935,000; 89 food companies $20.660,000, while 24 radio and phonograph companies expended $16,320,000. Forty-seven companies merchandising drugs spent $13,875,000 for white news- paper space, while 41 firms dealing in tollet articles added another $12,565,000. The growth of national advertising through newspaper space is one of the remarkable phenomena of the last 15 years. New York Customs Recelpts. The port of New York has always been and remains since Revolutionary times the most important port of entry in_the United States. Last year the United States Govern- ment collected $610.900,000 in customs receipts, of which $34,213,000, or 57 per cent, was taken in at New York. But the passenger baggage duties, which constitutes but three-fifths of 1 per cent of the total receipts, cause all the congestion and delay. Last year 397.823 passenger _declarations were made out at New York. So Secretary Mellon has asked some business men of that city for suggestions as to how to relieve the congestion. ‘Why not have customs men beard all important ships coming to the United States from Europe and inspect all pas- senger baggage before landing? This would eliminate unnecessary delay and congestion. Certainly, heroic measures will have to be taken to relieve the port landing’s difficulties, The present situation is in- excusable. The National Geographic Society of Washington has issued an interesting bulletin on the subject. Tobacco was the most important American export for 150 years—cotton for the next 150 years. It was only for a short time after the Reve olutionary War and the Civil War that flour and wheat took first place. B im- that the Van through their ‘The exports of the Colonial and of today in the order of thel portance are: Colonial Period. Tobacco. Fish, Hardtack and wheat. e. 1920, Cotton. Machinery. Petroleum Automobiles. Packing house P ron and steel. Wheat and flour. ice. Naval stores. Indigo. Whale ofl and bone. Fot and pearl ashes. Pickled Leef and pork. ‘Horses. Manufacture Sawmill products. And now cotton is fighting to hold first_place in United States exports— machinery exports in 1930 may crowd King Cotton into second place. But look at the record of American business expansion: Nuts. d_cotton. Foreign trade has become an essen- tial and integral part of American i:— dustrial life. (Copyright, 1830, by North America: - baper Alllancen T onn News Device Stacks Grain SHELBY, 8. Dak., April 12 (#).—, harvesting ‘machine. which (fi.nan “the headed grain as it is cut has been de- :;:o _'.\nd used successfully by farme

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