Evening Star Newspaper, April 20, 1930, Page 61

News of Markets Pages 1to 4 FINANCIAL AND CLASSIFIED he Sunday Star Part 6—12 Pages WASHINGTON, CONFERENCEPLAN FRALD PREVENTION I SECURTY SHLES Second Meeting of National Body Will Be Held Here May 22-23. INTERSTATE DEALINGS CREATE CHIEF PROBLEM Exchange of Information Among Various Public Agencies Con- sidered Vital. BY EDWARD C. STONE. Plans for the permanent organization of the National Conference on Preven- of Fraudulent Transactions in Securities are to be considered at its second meeting, which will be held at national chamber headquarters on May | 32 and 23. It will be preceded by a meeting of the National Association of Securities Commissioners on May 19, 30 and 21. ‘The first meeting of the conference, which was attended by representatives | of various national organizations in- terested in the work, was held last year. At this time it was decided to set up a conference of continuing type and & committee on organization was desig- pated to formulate plans for establish- ing a permanent body. Executive Committee. ‘The executive committee of the con- ference includes: Henry R. Hayes, Stone & Webster and Blodgett, Inc., former president In- vestment Bankers' Association, New York City, chairman; R. C. Clark, presi- dent of the National Association of Becurities Commissioners, commissioner of banking and insurance of Vermont; Oscar Wells, president First National Bank of Birmingham, Ala., director Chamber of Commerce of the United Eugene E. Thompson, Crane & Co.,, Washington, president of the Associated Stock Exchanges; Kenneth Barnard, Detroit, president of the Affiliated Better Business Bureaus, Inc.; H. J. Kenner, general manager of the Better Business Bureau of New York City, Inc.; John Jay O'Connor, manager finance department, Chamber of Commerce of the United States. The conference will act as a delibera- tive body and will not itself undertake to operate any fraud enforcement agencies. A number of subcommittees are engaged in studies of some of the special problems. One such problem of immediate im- ce now being stndied by the con- ference is the interstate transaction. Practically all of the States have laws to protect their citizens against security frauds, but these laws cannot reach the unscrupulous vendor who makes his off from without the State through the use of the mails or by telephone or telegraph. Another problem of immediate con- cern that is recelving study is that of improving the exchange of information upon ific cases between the various public and voluntary agencies now en- in fraud prevention work. An- other committee is making a study of the problem of local law enforcement, and still another is developing the es- sentials for good investors’ protective work by voluntary agencies. ‘While other problems connected with fraudulent securities will require atten- tion, the work is being limited at the mmt time in order to secure prac- results. Women Lose $700,000,000. Women of the United States lost more than $700,000,000 last purchase of fraudulent securities, it is estimated by Howard E. Reed, vice president of the Fidelity Investment Association, who states that the financial ignorance of the women of this country is so appalling that some plan should be devised whereby they would be taught the principles of finance. “Bear in mind,” says Mr. Reed, “that ‘women live longer than men and there- fore eventually they will have the handl of our money. And also— either tly or indirectly—and any married man will testify to this—85 per cent of our salaries are spent by Women. There is a big job for some one to go out on the highways and byways of finance and interpret the fundamental principles of investment 60 _that women can understand them.” ‘The above estimate appears to be yather high, in fact much too high, but the figures have an interesting bearing on the coming fraud confer- ence. Furthermore, it is very gen- erally known that women are not the only ones who lose vast sums every year through worthless securities. Heard in Financial District. Local bank cleafings during the past week totaled $28,866,000 against $20.- 508,000 in the previous week. This is a decrease in clearings of 1.3 per cent from the corresponding week a year ago. A syndicate headed by Merrill, Lynch & Co., Kelley, Converse & Co,, Inc., and E. A. Plerce & Co. will offer shortly a new issue of $2,000,000 Lane Bryant, Inc., 10-year 6 per cent sinking fund gold debentures, with common stock purchase warrants. All the New York exchanges and the Washington Exchange will resume business tomorrow after the three-day holiday. Wall Street will soon go onto | daylight-saving time, GAIN IN EMPLOYMENT IS SHOWN IN MARYLAND #pecial Dispatch to The Star. BALTIMORE, April 19.—There was 4an increase of 0.4 per cent in employ- ment in selected manufacturing indus- tries in Maryland from February to March, 1930, and a gain of 1.8 per cent in the amount of combined pay rolls | according to a statement of Dr. J. Knox Insley, Maryland commissioner of labor ana statistics. Employment in selected manufactur- ing industries in March, 1930, was 7.9 cent lower than it was in March, 5?.. In a comparison of employment in 1930, with that in March, 1929, 4 of the 16 major groups showed increases, while for the remaining 12 groups losses in employment were indi- Of the 286 establishments for which operating time was reported, 2 plants were not in operation, 181 were running on a normal full-time basis, 24 were working overtime and 79 were working on a part-time schedule, In other words, 77 per cent of the total number of persons were employed in establish- ments working full time or more. DIVIDEND VOTED. ‘The New Process Co. has declared the regular quarterly dividend of 1% cent on the preferred stock, payable 8y, 1030, to stockbolders of record ol g6 Fights Fraud OSCAR WELLS, Former president of the American Bank- ers’ Association, who is on the execu- tive committee of the national confer- ence on prevention of fraudulent trans- actions in securities, to be held here on May 22 and 23. He is one of the most noted bankers in the country. Railroad Mefger Plan Is Delayed By Couzens Bill Eastern Lines Feel Effect of Resolution to Check Pending Combines. Special Dispatch to The Star. NEW YORK, April 19.—There is no doubt that rallroad consolidation in | the East has received a check from | the Couzens resolution which attempts to put a stop to mergers pending further legislation, The gain that had been made in bringing the different trunk-line interests to a more amicable relationship with one another will be lost if the resolution presented by the Senator from Michigan is permitted to stand. The serious effect of it falls upon those Eastern lines that have avoided legal pitfalls by carrying on their con- solidation plans in the letter and spirit of the law, as they believe, while com- petitors have been building up a strong strategic position through the holding companies which they control. In his- concurring opinion in the railroad consolidation plan Commis- sioner Eastman definitely reflected his sentiment toward such corporations. In referring to the excesses that had grown out of the mergers of the Frisco and Rock Island, the Alton, the various Gould lines which formed the fated transcontinental system and the New Haven and the Boston & Maine, Mr. Eastman sald: “Today it is probable that the pow- ers of regulation which we now possess ‘would prevent similar excesses, although many of those that occurred in the past were the result of ‘holding com- pany’ operations such as are again be- ginning to develop and over which our powers of control are uncertain.” In his testimony before the Senate interestate commerce committee Mr. Eastman again reflected this opinion, stating that the Interstate Commerce Commission “substantially favors the Couzens resolution in so far as it deals with activities of holding companies.” ‘The disadvantage of roads like the Baltimore & Ohio and the New York Central in the situation is that the other two members of the four-trunk- line group, namely, the Pennsylvania and the Nickel Plate or Van Sweringen year | system, are steadily extending their field of operations and establishing new trafic feeders, through the instru- mentality of the Pennroad Corpora- tion in the one instance and the Alleghany Corporation in the other. Neither has waited for the Interstate Commerce Commission’s plan to be adopted or has been intimidated by threats of the application of the Clay- ton act in their program of increasing their hold on roads that are either complementary to them or are far afield from them. ‘The leverage which the Pennsylvania has secured in the New England terri- tory through recent substantial pur- chases of New Haven stock and the eye that it has to traffic in the South originated on the Seaboard Air Line, in which its subsidiary now has a con- siderable investment, have been much strengthened lately. The Van Swer- ingen purchase of holdings of Missouri Pacific in order to bring traffic to their own lines at St. Louis is inimical to other lines and might be most harmful even to the Wabash, whose direction has been from the same headquarters that have determined Missouri Pacific polictes. (Copyrisht, 1930.) STEEL PRODUCTION SHOWS STEADINESS Demand for Product Is Held Re- assuring in Present Industrial Situation. Special Dispatch to The Star. PITTSBURGH, April 19.—Altogether too fine distinctions are attempted at appraisals of the condition and pros- pects bith of steel in particular and of business in general whereby at best the public is given a distorted view, as- suming that the trends suppocsed to be discovered really exist. The big point, the steadiness of trade, is likely to be missed entirely. It is very doubtful whether sources of information can be tapped so generally as to determine a change of just 1 or 2 per cent in the rate of steel ingot production from one week to the next, but even if that were possible the trend would be too slight to mean any- thing. Such meticulous measuring has, in fact, already proved misleading, for probably no one will deny that steel presents a better appearance than was | generally expected C0 days ago. At that time much attention was giver to the fact that steel production had reached a mild peak at the middle of February and had afterward declined a trifle week by week, and the slight down- ward trend was projected into the fu- ture. None of the fluctuations was important. For weeks the rate of steel ingot pro- duction has not run outside the limits of 75 or 80 per cent of capacity. On the whole, it is probably a trifle heavier than 30 days ago. The main thing about steel has been its steadiness, which is not merely an ordinary stead- iness, but a steadiness in face of the D 1, SUNDAY MORNING, APRIL 20, 1930. Classified Pages S to 11 Ads ACTION OF STOCKS PAY ROLL INCREASE | [Business News in Retrospect N WEEK REFLECT UNSETLED TRADE Some Groups Advance, but Others React on Unfavor- able Developments. CUT IN COPPER PRICE STIMULATES PURCHASES Wall Street Apparently Sees Gain in Business, Although Recovery Is Slow. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, April 19.—The net re- sult of the week, during which there has been considerable churning about of stocks, is an average price slightly lower than that of last Saturday. Some of the special issues, particu- larly among the industrails, have ad- vanced above their previous levels. On the other hand, it is significant that there has been an increasing number of stocks that have dropped into the lowest area of the year, reflecting un- satisfactory earnings for the March quarter and immediately unfavorable prospects. Along with the flattening out of the price average for ‘“equities” there has been a definite and fairy pronounced reaction in bonds, whose average today is 13, points lower than a month ago. This represents a fairly large slicing off of the advance in investment se- curities that had taken place during the period of extremely easy money rates late in the Winter. Effects of Copper Cut. Business conditions in some directions have favored stocks this week, in others they have been to their disadvantage. ‘The outstanding incident, of course, has been the belated cut of 4 cents a pound in copper metal. This readjustment to the actual condition in the trade at once stimulated a larger volume of buying. ‘There is yet no proof that it will lead o normal purchases of the red metal by those corporations that make a large use of it in the manufacture of their products or in the extension of their facilities. The slight reaction in the iron and steel trade noted during March has been followed by a secondary upswing in the volume of production as the seasonal requirements for steel products come into play. So we have United States Steel responding in prices and in activity. April estimates of automobile output are more satisfactory. During the past 10 days reports on railroad car loadings have been making a better comparison than earlier ones. They are yet too much below the figures of a year ago to produce optimism in transportation circles. The steady decline in railroad stocks this month reflects the decrease of nearly 30 per cent in net operating income in January and February and the fear that when March revenues are presented they will show about the same relative loss as that already indicated. Business Improves Slowly. In its market operations Wall Street has been discounting the trade im- provement that first appeared with the expansion in iron and steel in January and carried in other directions on a modest scale into the month of March. ‘The situation today is that business is still slack. It has not realized the pro- portions predicted for April and shows no inclination to make a quick forward movement this Spring. It is all the time pre ing, with statistics of em- ployment gathered from official agencies and from charitable organizations in- dicating & smaller number of applicants per position available than at any time this year, but still too many to be satis- factorily accommodated. Easy money has been beneficial in some directions in giving merchants and manufacturers more courage to go ahead and as the level of stock prices has ad- vanced there is somewhat less restraint in the matter of purchase of necessities and of luxuries. In all, however, it is quite apparent that the country at large is practicing economy and saving its money, which reflects in such figures as a gain of nearly $29,000,000 in the de- posits of the New York State savings banks in March and of nearly 21,000 in the number of new accounts. Decline in Exports. Our own economic conditions are par- alleled in many of the countries that are the best customers for our surplus goods and raw materials. This accounts for the slump that has occurred in ex- ports. In March these were the small- est for the month in many years. For the March quarter they were off $286,- 000,000, or 20 per cent, compared with the same period of 1929. It may be argued that this is the penalty we are paying for the present limitation of dollar loans to foreign countries. Inasmuch as our highest figures of exports last year coincided with the minimum of foreign loans for any period since 1924 this is not a logi- cal conclusion. Except for Great Brit- ain, practically all of our largest cus- tomers in Europe are in a better posi- tion to buy in this country than they were 12 months ago. The same is not true, however, of South America or Central America, where a fair propor- tion of the shrinkage in exports appears. Not only are people in other parts of the world economizing, but they are steadily producing more of what they are consuming and are retaliating in their own way against the tariff walls we have been building up against them. Stimulus to Investment. In considering the apparent contra- diction between rising stock prices and | an unsatisfactory business situation, one | cannot leave out of account the motive for the former in the great financial operations that constantly are taking place and are producing both a specu- lative as well as an investment effect. Scarcely a week goes by that does not bring one or more of these into sight to act as a stimulant and to excite the im- agination of those who buy securities {or long future prospects. The most re- cent development of this sort is the pro- posed absorption by the General Elec- tric and the Westinghouse Electric of the Radio Corporation. This contains potentialities that are difficult to meas- ure in terms of corporation profits. The suggested merger of the two great na- tional distributing organizations, s«uxs’] Roebuck and Montgomery Ward, is an- other case in point. (Copyright, .930.) —e- U. S. TREASURY BALANCE. The United States Treasury balance announced today as of close of business April 17 was $252,038.831.30. Customs seasonal tendency that steel demand has usually shown to decline at this receipts for the month, to date, were gn,wl.ul.u. Total ordinary expendj- $31,076,032.31, NORMAN B. FROST, Local attorney, who has been elected a director in the Liberty National Bank. He is a member of the law firm of Frost & Towers and becomes one the youngest bank directors in the city, being only 32 years old. NEW BOND ISSUES DEPRESS MARKET Advance in Money Rates Also Factor in Losses Dur- ing Week. Special Dispatch to The Star. NEW YORK, April 19.—The contin- ued saturation of the investment mar- ket with new bond offerings and the slight advance in money rates have combined to concel about half of the rise that the bond market had achieved in March. The four sessions this week served to emphasize the drifting char- acter of the market. The averages drop- ped about one-half point in the week. In the four days there were $98,504,- 000 of new bonds brought out, com- pared with $182,111,000 in the week be- fore and $39,371,500 in the same week of 1929. This is at the rate of about $25,000,000 a day and considerably ahead of the pace that new offerings set during March, The largest single item was $41,294,000 of Southern Pa- cific Oregon Lines first mortgage 4 per cents, which were sold at 97! to yield 4.63 per cent. This about gauges the market for good rafiroad bonds. ‘The municipal market, however, is holding its high levels very well. Prime municipals are not plentiful and many dealers are in the market for new issues. An instance of this was the high price paid for the $31,550,000 New York State 4 per cents auctioned during the week. J. P. Morgan & Co secured it on a basis of 3.79 per cent cost to the State. How- ever, since this issue was bought for a special purpose and will not be reoffered, bids put in by other syndicates, most of which were around a 3.95 to 4 per cent cost basis, are thought to have been a closer estimate of the market. Foreign Loans. Foreign dollar credits continue to hold up well, their decline being considerably less than has been the case with domes- tic issues. Much of this strength is at- tributable to foreign buying. The French government, for instance, has been buying its own 7s and 7!2s in mod- erate quantities. These bonds are not callable except for sinking fund pur- poses. Japanese issues recovered most of their loss of the week before with the news that the Tokio government had taken measures to stabilize ex- change and correct the conditions re- sulting from business depression. The British budget caused a mild flurry in United Kingdom bonds, but the first disappointment was replaced by a spirit of gratification that nothing radical had been attemped. Hence, the price of British securities returned to their previous level and even gained a little, as a reflection of Chancellor of the Exchequer Snowden's expressed be- lief that cheap money will prevail for some time. Money Rates. Domestic money rates were a little higher during the week, 90-day time money ranging between 4!, and 4l2 per cent, There is little disposition to look for a very much higher range for money for some time to come, and deal- ers are confident that when the present stream of new bond issues is stemmed somewhat, outstanding bonds will ad- vance again to a point where they more correctly reflect the present cost of money. (Copyright, 1930.) . MOTORS AND BUILDING AIDED BY CHEAP MONEY That cheap money continues to be the dominating factor of the business outlook and there are favorable devel- opments in view at this time, is the belief held by the Brookmire Analyist. “Under the stimulation of cheap money, more than a seasonal recovery in building occurred in the first quarter of 1930. Steel operations for the two weeks ending April 5 turned up from the decline which had been in evi- dence from the middle qf February to the end of March. Optimistic reports have come to hand on the automobile situation and some improvement over the low rate of operations in March is a probability for the current month.” MINING IS OLDEST INDUSTRY IN WORLD It is little realized how ancient is the use of capital according to its definition as “the accumulated wealth either of a man or a community, that is available for earning- interest and producing fresh wealth.” Flint mines, with shafts and underground galleries, have been found in England dating from Neolithic times, 8,000 to 10,000 B. C., showing that a well organized system of life and labor existed. The signifi- cance of this is brought out by R. H. Mottrar,, a retired English banker, in his re ently published “History of Financ 1 Sneculation.” ST e e i B.NK CLEARINGS. NE\ YORK, April 19 (Special).— Bank learings, today, $438,000,000; a year a 0, $1,318,000,000. Bank balances, today, $91,000,000; & year ago, 000,00, Federal Reserve credil ces, today, $73,000,000; & year ago, 6,010,000, » $126,~ t bal- SHOS REDUCTION OF UNENPLOYNENT Indications During Week Re- veal Upward Trend in Industry Has Started. COMMODITY PRICE GAIN IS BENEFICIAL FACTOR Retail Sales Show Seasonal Ad- vance and Foreign Trade Is Better. BY J. C. ROYLE. Employment reports made public throughout the entire country in the last few days indicate that the low point of labor depression has been passed and that pay rolls are now in- creasing, both as to number of work- ers and to amounts received by them. Industry in general showed a re- markably small effect from the drastic drop in copper prices from 18 to 14 cents. The mining industry, of course, was the most seriously affected. The drop will probably necessitate the clos- ing of some of the higher cost pro- ducers unless the ground is recovered rapidly. Radio Deal. On the other hand, curtallment al- ready was in effect in most of the mines. The trouble was that the cur- tailment had not been sufficiently long in operation to prevent consumers from anticipating market prices in view of the heavy increase in stocks on hand. ‘The absorption of the radio equip- ment manufacturing facilities of Gen- eral Electric and Westinghouse has raised many legal questions and may lead to long-continued litigation since some of the problems involved are es- sentially new and have not previously been ruled on. Violent opposition un- doubtedly will be brought by the so- | called independent radio manufacturers. Easing of the money market con- tinues, with funds readily available for legitimate purposes. The steel industry is maintaining a steady pace with prospects of improvement in the not distant future. Most of the difficulties have been ironed out in the employment situation in automobile centers, although the operations of the various units in the industry vary widely, some being on a strong production basis and others oc- cupying & far. less enviable statistical position. The electrical manufacturing con- cerns are still actively engaged, but orders have been 10 per cent lower than during the record-breaking first quarter of 1929. Car loadings are increasing and in general the agricultural situation is fully as good as was expected. The cotton textile industry has im- proved its position decidedly and pro- duction now is running about 30,000,000 yards a month less than sales. The latter aggregates nearly 112 per cent of production. Shipments have been larger than production and stocks are consequently being reduced at the rate of about 5,000,000 yards a month. Building Picks Up. Building construction has undoubt- edly taken a definite turn for the better, according to latest reports. Building materials are firm and some of the standard commodities used in construction are showing an upward trend In price. Commodity prices in general have advanced in the last week. Production continues to show a slight increase, despite restrictive measures. This is balanced, however, by the approach of the period of greatest consumption, The insurance companies apparently are unworried concerning their real estate mortgage loans, since these loans are being increased by some of the companies. Retail trade through the week has been of splendid volume. This, how- ever, is natural the week before Easter. The expenditures have shown little falling off as compared with the last two years. The largest increases have been in women's wear, although the sale of men’'s wearing apparel also showed decided advances. Some industries are discounting in advance the effect of the tariff bill now pending in Congress as a result of the action of the conferees on some schedules. This has been apparent in the shoe industry and some others. Foreign trade is speeding up. The other nations were seriously affected by the drop in the prices of American securities last Fall, and this served as a check to foreign buying for a time. The effect is now passing. (Copyright. 1930.) - SMALLER INCOME TAX PAID BY INDIVIDUALS Returns for March Show Corpora- tion Figures Near Those for 1929. i By the Assoclated Press. Most of the decline in Federal Gov- ernment income tax collections during March of this year as compared with the same month last year was disclosed yesterday by Internal Revenue Bureau figures to be due to the lessening of payments by individuals. Corporation income tax payments for the month, in spite of a cut of 1 per cent in the rate of this year’s levy, were almost the same as last year. The figures for March corporation collections were $280,831,000, against $282,088,000 last year. The March collections from individ- ual incomes this year amounted to $274,913,000, against $313,899,000 last year. In other categories of internal reve- nue the March collections were better this year than last. From the manufacture of cigarettes this year, the Government obtained in March a total tax of $27,496,657, against $26,069,595 last year, The estate tax also yielded $4,424,102 for March this year, against $3,004,484 last year. POTATO ME(;I’-I‘. CHICAGO, April 19 (United States Department of _Agriculture) (#).—Po- tatoes, 77 cars; 287 on track; total U. S. shipments, 470 cars; old stock, trading fair; russets steady; other stocks strong- er; Wisconsin, sacked round whites, 103 innesota, sacked round , 2.7582.90; Idaho, sacked Russets, trading glow. - :‘ 'fhdenfn !xl‘em' “Bliss o irket 3 J Trumphs, €108428 Action on Various Bills Affecting the Financial Structure of the Nation Seems Unlikely at This Session BY I A. FLEMING. 1t does not seem probable that there will be any financial legislation of im- portance before the first session of the next Congress. There are many bills before the Senate and House, but with scarcely more than a month be- fore adjournment, action seems un- likely. ‘When ' the law- makers finally tackle the matter it will probably be found to be almost as difficult of set- tlement as was the tariff question. Branch banking, chain banking and the group method of financing will be the chief points of discussion, each having many advocates, but in addition consideration will be given to issuance and sale of securities and eligibility of paper for rediscount by the Federal Re- serve system. Speculation is sure to be grilled. Then, too, the opponents of each of the proposed methods of doing banking are by no means scarce and they are equally as sure in their position as the friends of the measures. ‘The House banking d currency committee hopes to be ready to furnish all needed facts and features of the va- rious proposed methods whenever called upon to do so, and for this purpose has been holding hearings. It is evident that the financial sys- tems of the States need changes that I A. Fleming. will give more stability to State banks | . and restore confidence in their ability to continue functioning, else it would be much better to install national banks and the group plan. Maintenance of State banks, for which which interior legislators will make a persistent fight, has been a very costly experience to their patrons sharehplders, etc., especially after the severe slumps in grain and land. Like Group Plan. It is understood that Secretary Mel- lon and Gov. Young of the Federal Re- serve Board favor the suggestion for group banking, as advocated and strong- ly upheld by John W. Pole, controller of the currency. He is strongly opposed to so-called chain banking as it has ex- isted for years, where a few individuals have gained control of a group of banks via ownership of majority of stock, op- erating with reliance on their officials alone. Control of & number of units by a holding company, corporate instead of individual, is explained as the chief dif- ference between the chain and group methods. If the holding company is strong financially as they must be if it is so nominated in the law, they can be of much more use to community and not an element of danger. Group banking as advocated would include banks in & certain zone of trade owned by a holding company located in the chief commercial city of the dis- trict. Branch banking has & multitude of enemies and friends, indeed, all propo- sitions so far advanced for a change in the Federal Reserve act are in much the same fix, hence it is possible that this Congress will do nothing in the matter. A general shifting of State banks to national bank charters would solve the entire matter, but that is one of the impossible suggestions. Collections, now a relatively small matter, are still valued by the State institution. Back of the proposed changes is the feeling that the independent bank has not maintained itself as it should. Guarantee of deposits and double lia- bility have also been found wanting. Howard Moran, Mover. Howard Moran has never played a game of chess in his life nor even checkers, but & problem in moving was put before him by Corcoran Thom, president of the American Security & Trust Co., when he asked him to find office room for the various departments of the company, forced to vacate the temporary buildings on the north of the bank that were torn down to make way for the new 10-story structure—‘with- out much expense.” | A temporary second balcony was constructed in the main banking room. | Mr. Thom shifted over to his old seat, | just south of the elevator to the safety | vault, Mr. Moran moved to Mr. Thom's of Congress. office and Mr. Siddens doubled up with Charlie How. A general doubling over the main office placed many more, the central branch had room to spare, in addition to an apartment which housed per- sonnel, auditors, etc., and the problem was solved at practically no cost, with the exception of the real estate section, one of the large entities of the com- "Xf his wit's end, Mr. Moran declared his intention to spend some money, and at once engaged quarters for the de- partment in the Walker Building, south of the Union Trust Co. Mr. Moran then took a day off for a needed rest. Much Needed Investigation. Investigation is the order of the day and the Senate hasn't a monopoly of it by any means. Pinance companies and automobile corporations with insurance and bank- ing concerns have demanded and their needs have produced several large firms whose business requires careful delving into the various lines of commercial and other business activities and that have more than demonstrated their ability to render valuable service to their clients. Financing of auto installment sales is dangerous now that confiscation of cars captured in the rum-running raids has become such a factor that appeals have been made to the Government for the return of seized cars to those hav- ing liens on them. It is not likely that their pleas will be granted, while the risk is sufficlent to make the investigation of would-be buyers thorough before delivery of cars. Frequently the result has been to dis- cover the “runner in his happy home,” Ill'ld only the deeper probe will uncover m. The insurance fraud is probably no worse today than ever but it is bad enough to keep companies and their agents on edge all of the time. Some of the most wonderful tales are told of insured men and women alleged dead long before their actual passing. Bankers want to know more about the men who are opening new accounts and planning to do business with them. Occasionally they are able in this way to check attempts to get the better of the institution. Trust Company Earnings. Reviewing the earnings of individual trust companies, the New York Finan- clal Age says: “The Guaranty Trust Co. earned $24,- 921,000, or 31.8 per cent on its average capital, 10.5 per cent on total capital funds and 2.36 per cent on its aggre- gate net funds. During the year divi- dends amounting to $14,100,000 were paid and the surplus profits increased $139,957,000 to a total of $205,035,000. Of this increase $10,821,000 was from earnings and $129,136,000 was premium on increased capital stock and from the absorption of the National Bank of Commerce last May. The present capital is $90,000,000 and the Guaranty is one of the few large banks which have retained the par value of their stock at $100 a share. “The Central Hanover earned $24,- 255,000, or 121.2 per cent on iis average capital stock; pald dividends aggregating $9,850,000, in which is in- cluded a stock dividend of the par value of $2,500,000, but with a market value of many times that sum, and with its additional earnings and the absorption of the Hanover National Bank increased its surplus profits by :;é.agg.ooo to the present total of $84,- Other Trust Companies. “The Bankers' Trust Co., with total average Jfunds of $563,330,000, earned $14,298,000, or 2.54 per cent on total funds. Dividends of $7,500,000 were paid in the period and $6,798,000 added POWER OF SCIENCE USED TO ELIMINATE WASTE ININDUSTRY Invention of New Methods Revolutionizes Modern Pragc- tices in Business World. PRODUCTION OF SUGAR IN LOUISIANA IS CITED Analysis of Conditions There Re- sults in Large Gain in Annual Crop. BY JOHN F. SINCLAIR. Bpecial Dispatch to The Star. NEW YORK, April 19.—Few Amer- ican business leaders can match B. J. Dahlberg of Chicago in youth, energy, optimism and achievement., He thinks the scientist can be of great use in developing an industry. Here is the way he expresses his belief: “The sclentific approach—that's what every lagging business needs. Think of Louisiana producing but 54,000 tons of sugar in 1926! Scientific men were called in. It was found the sugar cane was diseased and dying. It had inbred too long. The ground was analyzed and found fo be all right. But the sugar cane was not. We started cleani house. A year later, Louislana produced 92,000 tons. Last year it ylelded 210,000 tons and we expect 350,000 tons this year. Sclence works wonders in industry.” “What about Florida,” I inquired, { knowing that the most ambitious plans in the United States for sugar growing are being undertaken there by “We have now 30,000 acres in sugar cane there, and we’ve got another 30,000 acres ready. This year, for the first time, we're doing all our work, planting, cutting and manufacturing, with mod- ern machinery. We work day and night. | Our results are astonishing. Florida | should produce 3,000,000 tons of cane sugar in 10 years. That means an income of $300,000,000 a year. What oil is to California, sugar will be to Florida. Dream? Just a plain state- ment of fact, based on science and in- dustry,” said this sugar capitalist. His own plans in Florida call for a |Ptoductlon of 500,000 tons within the next flve years. Canadian Enterprise. Arthur E. Sproul of New York, be- moans the ignorance of the people of America concerning the most obvious facts of Canada. How many Americans, he asks, know the. port of Halifax increased its ton- nage by 40 per cent last year, and that this little Canadian city has the largest dry dock in the world? How many Americans would answer that the largest port of the Atlantic Coast after New York is Montreal, located 1,000 miles from the Atlantic Ocean? Who of us know that at Sault Ste. Marie the canals carry more traffic than the Suez, Panama and Manchester ship canals combined? In the larger fields, he tells us that Canada leads all the nations in the production of news print, nickel, asbestos and cobalt; that she is second in the production of wheat and automobiles; d third in the output of lead and gold; and that as an exporter she stands sixth among the nations of the world. All true—"we do have quite & neigh- bor up north.” Great Falls Project. The American Institute of Architects, supporting the Capper-Cramton bill, to surplus, making that item $84,296,- 000, with capital of $25,000,000, as it was a year ago. The earnings to capi- tal equaled 57.2 per cent and on com- bined capital funds to 14 per cent. “The Equitable Trust, which is about to consolidate with the Chase National Bank, earned more than twice its divi- dends of $6,045,000, the total net earn- ings amounting to $13,236,000, or 32.35 per cent on its total funds of $608,- 280,000. “The Irving Trust Co. increased its surplus by $29,160,000 to a total of and_in- 0 to $50,- Its net earnings were $12,160,- 000, of which $8,000,000 was paid in dividends. Its total net earnings to to- tal net funds of $538,628,000 were in the ratio of 2.26 per cent.” MARYLAND TOBACCO OUTLOOK FAVORABLE University Report Calls Attention to Recent Increased Demand for Product. Special Dispatch to The St BALTIMORE, April 19.—The outlook for Maryland tobacco is very favorable, since the grade of leaf grown in this State is used principally for cigarettes and the consumption of this commodity is increasing at an enormous rate, ac- cording to a report of the University of Maryland Extension Service. In- ternal revenue figures show that 13,000,- 000 more cigarettes were taken from: bond during the calendar year 1929 than during 1928. ‘The report shows that since Mary- land has not produced a 80,000,000~ pound crop since 1920, and as the annual production in this State is one fifty-fourth of the total United States production, Maryland growers may be facing a serious situation, since the progressive increase in con- sumption of cigarettes is forcing many domestic cigarette manufacturers to! demand more Maryland tobacco. ‘They must have a certain percentage of the Maryland leaf to maintain a perfect blend with tobacco from other States and countries, the report says. There, is authority for the statement that when a factory is compelled to discontinue the use of a certain type of tobacco many years pass before that type is considered again, because from three to five years are required to make a satisfactory blend for cigarettes. Maryland is fortunate in having one of the two surviving tobacco co-opera. tive associations in the United States, the State of Wisconsin having the other. 'The Maryland organization ‘hlsl done a successful business since its birth in 1919, and the officers of the | assoclation are urging growers to pro- duce more tobacco. Maryland stocks are low and prices have been good. In view of these facts, growers are Jjustified in from 10 to concludes. 15 per cent, the report SILVER QUOTATIONS. 10 (A).—Bar sil- increasing their production | jeq CHANGE IN DISCOUNT POLICY IS FORECAST Reserve Bank May Move Rate by 1 Per Cent Up or Down. A change in procedure in connection with revision of the rediscount rates of the Federal Reserve Banks has virtually been decided on, it was learned from governmental sources yesterday. Here- after changes in the rate, especially that of the New York Reserve Bank, will probably be made in 1 per cent jumps instead of one-half of 1 per cent as has been the custom. ‘There is every reason to believe that the Treasury officials have been pleased with the increase in the volume of transactions on the various stock ex- changes and with the improvement in prices. These factors are taken to indi- cate a revival of optimism and of busi- ness prosperity, But the officials are fully determined to check promptly any move toward inflation or unbridled speculation. It is felt that the speculators have become so used to the !> per cent Changes in the discount rate that they have ceased to mean much, whereas a jump of 1 per cent might be counted on to exercise a strong psychological influence and bring to mind just what the Reserve Board can and may do in the event of development of a market such as existed in the Summer of 1929. Treasury officials realize that the change of even 1 per cent probably! would not check the professional T tors. The latter would not care call money went to 15 or 20 per cent pro- vided the market moved so that profits were possible even under such a rate. But an abrupt change in the bank rate would have a far different effect on public buying and selling. ‘The improvement in prices on the Stock Exchange has brought about a change for the better in the sition of the investment trusts and this has led to some additional buying, accord- ing to some authorities here. The posi- tion of the investment trusts, as well as holding companies, is being closely which provides $21,000,000 for the con- struction of a national parkway on both sides of the Potomac from Mount Vernon, Washington’s old home, to Great Falls, Md., wants the beauty of the falls preserved as it is today. ‘When the power interests declare that $100,000,000 loss will result from the failure to develop fully all phases of the Potomac River, the architects reply that the estimated savings on the differential in cost between steam an power are “extremely problematical.” ‘They point out also that the Southern California Edison Co. recently announc- ed that it would now concentrate on steam power instead of water power bec:use of its cheaper manufacturing cost. “There is no reason why a Govern- ment as rich as ours should have to barter away to private interests any such natural rights or beauty spots as the gorge of the Potomac, simply for & financial consideration,” says the in- stitute. “The area has far greater value to the Nation in its present condition.” One can hope that this particulariy chotce beauty spot, so near the Capital of the Nation, may be left unmolested. ‘Thomas A. Edison is always interest- ing. One of the most inspiring business leaders in the Nation, he refers to ex- periments which he expects to complete five or six years from now, although the famous inyentor has already reached 83. When asked how long it would take him to get rubher in commercial quantities out.of goldenrod, the plant he chose out 0f 14,000 vasieties as the most prac- ticable for his wark, he replied: “Oh, five or six years, maybe. I'm going to make one unit at Ford'. place up near Savannah, and I expect to try to make the first working establishment up_there.” ‘When that work is finished, he will be 87 or 88. But that doesn't mean a thing to him. ‘That's really what makes him so youthfil, so useful, and interesting— always vorking for new worlds to conquer, Anti-Trust Law. ‘Would an amendment to the Sherman anti-trust act, making the words “in restramt "of trade” mean “only such restraint of trade as having due regard to the interests of producers, workers and consumers, shall be to the detri- ment of the public,” help to clear up the situation in this fleld? A National Civic Federation com- mittee, studying anti-trust legislation for two years, believes such an amend- ment might help. Rush Butler, chairman of the American Bar Association’s committee on commerce, also a member of the National Civic Federation’s anti-trust study committee, raises the question whether the United States Supreme Court “would hold the Sherman act aménded by such an amendment valid. The court,” Mr. Butler says, “might say that it always has taken the interest of the public into its decisions.” Arthur M. Gary, Western attorney, a champfon of the farmer, believes other- wise. He thinks until regulation has proven effective “the ple are not going to stand for any liberalization of anti-trust laws.” (Copyright 1930. by North American News- er Alliance.) QUARTERLY DIVIDEND. analyzed both by the Government de- Emml':lq l:du tb’ n;\mbcn of has already begun. ) Corporation has 3 ¥ r g dividend of 1.78 . rred stock, §iSNa R Ted ik pavante o