Evening Star Newspaper, April 27, 1930, Page 69

News of Markets Pages 1 to 4 Part 6—12 Pages ILACHLEN BANK BRANCH WILL OPEN DOORS TOMORROW Many Invited to Attend For- mal Event at Fourteenth Street Institution. STEAMBOAT CO. RIGHTS ARE QUOTED AT 17 BID Eighteen and One-half Asked on ‘When Issued Basis—Base Ball Stock Is Higher. BY EDWARD C. STONE. ‘Washington's newest branch bank building will be ready for business and public inspection tomorrow when the new home of the McLachlen Banking Corporation will throw open its doors at 310 Fourteenth street southwest, di- FINANCIAL AND CLASSIFIED The Sunday Star Announces Opening PRESIDENT L. P. McCLACHLEN Of the McLachlen Banking Corpora- tion has invited bankers and business men to the opening of the bank’s new branch office tomorrow. The building has just been completed, is of Georgian style and stands across Fourteenth street from the Bureau of Engraving and Printing. Richmond Reserve have been sent to bankers all over the city and to many business men invit- ing them to look over the bank. Already the new bank has attracted a great deal of attention from passersby on the arterial highway leading from Wuh.\n[tfln into Virginia, The d- 's is designed in Georgian style and di eu in appearance from any other Striking quaintness through the con- chimney ends and sloping roof of mllgh black slate lurmo\mhd by a white cupola. new hnbeen first-floor space is subdi- 1, the bank occupying :ppmxlmnw- fifths of the area, the der being leased for other hualnesu available in the years to come for business should the need for arise. ‘The building’s facade has g base of black polished marble and is faced with ite of a mixture of warm and cool es, resulting in a general tan color. vdoorwny,wrnlu-n d other trim is of buff limestone. In the soffit panels of the cornice are rosettes, with 8 light bulb as its center, giving at night & soft illumination of the front. The cupola is adorned with a clock. Cageless Counters Adopted. plaster walls and ceilings of a sub- he dued color and of knotty white pine, in finish, for all woodwork includ- Louls ‘The k!hm by | transferred $97,362 to surplus in 1929, the bank, which ts main office lt Tenth and G streets, are Lanier P. McLachlen, treasurer, and E. L. W. Goldney, auditor. ‘The directors include P. R. Horner, ‘Thomas R. Harney, John A. Masse, Archibald McLachlen, K. P. mmm;. Edwin H. !?-I. ue! Cflicorbeth A McLachlen, Henry ittinger, George Miller and Willlam B. Kerkam. Steamboat Rights on Exchange. Norfolk & Washington Steamboat Oo H(h appeared on. the Wi Exq yesterday, lollmvm. mdnyx listing by the board of gov- ernors, They were quoted on a when issued basis at 17 bid and 18%, asked. ‘The Saturday market opened with Washington Railway & tric pre- ferred selling at 98, American Security & Trust at 418, District of Columbia Paper ferred at 50 and Mergenthaler at 107%. After call, Potomac Electric Power 6|Al t preferred came out at 11256. the 5% per cent preterred at 10835, an -American National Bank In the bonfl dlvhlon $3,000 Capital ‘Traction bs hands at 95, $1,000 Railway & Electric 4! moved at 871> and $500 Washington Gas 6s, series A bonds sold at 1025 ‘The unlisted ucurides were called off and few changes during the week in quotations noted. The bid price on W base ball stock was ad- vanced from 45 to 50 and the asked Yi:lm from 55 to 60, indicating the be- the part of leading local fi- nanciers that the Senators are going to land-farther up the list than last year. At the request of George A. Harrls, 1dent of the Potomac Joint Stock d Bank, the bank’s 5 per cent 1934- :r‘-m.tr%‘ l‘t?ld Bank bonds were with- wn m the trading list, beginning Mon. The bonds have recently been quoted at 88 bid, offered at 93. The last sale was made at 91. Washington Gas March Net Off. In its monthly report filed yesterday with_the Public Utilitles Commission, the Washington Gas Light Co. reported a net income in March of $56403.15, compared with $62,105.98 in March 1929. Operating revenues amounted to $477,142.04, compared with $485,320.76 a year ago; expenses and taxes required $360,019.78, against $361,854.26 last year, having a total operating income of $117,- | Year. 12226, in comparison with $123,466.50 in the same period in 1929. For the first three months of 1930 the gas company reported operating revenues of $1,545566.87, against $1,- 595,341.80 a year ago. Operating ex- penses amounted to $993,610.33, com- with $1,013,980.01. The usual other deductions left a net operating income of $453,726.69, against $466,- 269.20 a year ago. ‘After all deductions the company re- & net corporate income for the quarter of $458,925.25, in comparison with $472,523.30 in the first quarter in 1929. Georgetown Gas Reports Gain. In the monthly report of the George- town Gas Co. net operating revenues for March were given as $89,431.47, against $85,688.84; expenses and taxes requked $68,893.. 53 against $71,431.91 a Operating revenues of at 280. C‘:vehnd district. Bank Pays Highest U.S. Franchise Tax Total of $876,262 Turn- ed Over to Government. Atlanta Branch Is Second. Special Dispatch to The Star, RICHMOND, Va., April 26—The fifth Federal Reserve Bank, with head- quarters in Richmond, leads the entire system in the franchise tax paid to the United States Government, according to the sixteenth annual report of the Federal Reserve Board. Only 7 of the 12 banks made franchise tax payments, the Richmond bank giying the ern- mun “’IGJ ‘was second, with $803,790, lnd Dfllu was seventh, with $259,361. Boston, Cleveland, New York, Phila- delphh and San Francisco have not yet built & surplus account equal to ?l'.ll and eonuqumv.ly did not pay Gross nrnlnn of the Richmond bank in 1929 amounted to $3,299,609, the bank ranking eighth, with Minneapolis, Km.u.s City, Dallas and St. Louis tak- i.nq lower pheeA Richmond was also hv.h in earnings, the amount umzzs Dividends to mem- 3 were $368,601 for the Rich- mond this figure bel larger than total mcn‘t;' Afllllfil. )ll;lt- ond _bank Bank Suspensions. the period cf 1921-1929, inclusive, been 437 bank flwre hlvo the Ri district, of which 59 ‘were in 1929. But only 52 of the banks that suspended were members of the Federal Reserve system, leaving 385 non-members. In the total number of bank suspensions m nine-year riod Richmond is sixth place. leads, wuh 1,481 = sus- bank Mary- land, West Virginia District of Columbia. Deposits of the suspended South Carolina banks amounted to $60,- 000,000 and those of the North Caro- lina banks to $29,000,000. Only two districts, Atlanta and Bos- ton, have fewer member banks on the than Richmond, with 1,091 ‘There are 546 the “par” list, which is exceeded only it 1,174 in 1928, but there was a cofre- in every other district. 1 of the of the New York, Phila- delphia and B{lwn districts are on the list and all except nine in the Withdrawals From System. ‘There were 514 members of the Rich- mond bank in 1929, which was a de- crease of 33 fraom the 1928 figures. Four districts, Chicago, Minneapol Kansas City and Dallas, lost more members than did the Richmond bank. Boston lost only four and New York, seven. Chicago led in losses, with ‘Withdrawals from ing to Gov. George J. Seay of the mond bank, are due, in part, to consoli- dation of member banks and State banks which maintain branches. The area most affected by consolidations in the fifth district is North Carolina and South Carolina. LARGER WHEAT CROP THAN IN 1929 LIKELY Spectal Dispatch to The Star. KANSAS CITY, Mo., April 26.—The first third of the year has spanned some trying months for the farm country, yet trade has on the whole made practically as good a record as the similar period last year, the relative gains in business in late Winter and early Spring off-setting the rather marked shrinkage of the turn of the ar. While lacking any briskness, mer- chandising throughout the interior is broadening and its volume seasonal as to lines now in demand. Cooler weather with scattered showers has kept wheat growing and the present indication for the Southwest is for 308,400,000 bushels in Kansas, Missouri, Oklahoma, Texas, Colorado and Ne- braska compared with 302,153,000 last year and 355,000,000 in 1928. ating income of $74,496.95, against $55,237.38 a year ago. The remaining deductions left a total net corporate income for the quarter of $62,801.15, in comparison with $43,687.26 in the cor- responding period in 1929. Morris Plan Banks 20 Years Old. ‘The Morris Plan banks begin a Na- tion-wide celebration of their twentieth anniversary this week. The plan its inception in 1910 in Norfolk Vl. where Arthur J. Morris, fresh from his , leaving $20, 537“ compared with .10258 93 in March 1929. Aflzr all the regular de- ductions the corporation reported a net rate income for the month amount~ ing to $16,666.50, in comparison with smaller figure of $10,459.93 last our. For the first quarter the company reported revenues from operations amounting to $299, 454 40, against $284,- 138.39. Expenses in the three months required $210,214.33, compared with tzu 651.95 in March of last year. After payment of expenses and taxes the concern had an oper- studies of banking law at the Univer- m{ho! Virginia, established a tiny bank, & capital of only $20,000, for the purpose of carrying out an ides. ‘This idea was that credit could be extended without material security— that it would be made available to mil- lions of individuals without real estate, stocks or bonds who could pay back the loans at regular !ntervn.u corre- sponding to their urnln: Bertram Chel rman the local bank and cellent showing with Pruidmz of made an ex- institution, WASHINGTON, D. C., DECLINE IN STOCKS REFLECTS LAGGING PACE IN INDUSTRY Highly Professional Market During Week Favors Utilities and Amusement Shares. RAILS AND INDUSTRIALS DEPRESSED IN SELLING Trade of Nations Shows Signs of Gaining Under Seasonal Influences. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, April 26—A stock market that has given more recognition this week to the true facts in the business situation shows a net average decline and a loss of a substantial parf of the gains made in the first hs)t of the month. It has been a highly pro- fessional market. On Wednesday, with transactions ex- ceeding 5,500,000 shares, more than half were concentrated in 20 issles of the total of 880 quoted on that day. Over 20 per cent of the turnover was in seven stocks representing the amuse- ment and collateral industries, It is a safe guess that 60 per cent of the current business being done on the New York Stock Exchange, and like- on other exchanges here and throughout the emmtry. is for the pro- fessional element. The public is less actively interested it was several weeks ago. Opposite Trends in Groups. A parallel between market movements now and during the greater part cf the Spring and Summer of 1929 may be found in the opposing trends of dif- ferent groups of securities. While cer- tain ones are advancing, others are de- clining, so that the daily list of new high and low prices for the year fre- quently balances. Those that are Iis- ing because of their immunity irom the effects of a trade recession-—and this includes l.he public utilities and the Amusement shares—cxcite the greatest attention, command the largest volume of trading and throw a smoke screen over the dozens of industrial, merchan- dising and railroad equipment issues that are steadily being depressed by li- quidation and the switching from them m other stocks less influenced by busi- ness In consequence of these contrary movzmml:.‘s we v?nd onen:le::ent in wn"l} Street. which, vie e business ouf :‘m ‘::gmm of its buoyant mdahmtplckmgupmmou- tent predicted a month or two Abcutnlmtunbemdolltuuut it is moving xlowl{ forward unde! sea- Tn“m%m t April, as A;m.l er P! improved over mrch. ‘The hu Sp! and Summer are likely to qulet which puts forward the date of any striking I.mvruvemenc to September or chber If this an accurate judg- ment of the ou&boh then stocks that are intimately identified with the min branches of manufacturing, merchandis ing and transportation do not justify a further advance from the high levels re- cently established for them. For the present, at least, the in- fluence of low money rates on specu- lative issues worn off, just as it has_on bonds. The estimated motor car production for the first half of this year is 2,100,000 cars, or a 40 per cent decrease from the same period of 1929. This obviously will make a decided impression on earn- ings for the six months as they are published next Summer. It is to be remembered, however, that majorit; the important producers have n establishing reserves of cash and of marketable securities in the years, it * they ir liabilities and \‘.hn few of them have a bonded indebtedness, Reduced nrninu do_not necessarily mean’ reduced dividends. Trying Period for Rallroads. ‘The transportation industry has been seriously upset by the slump in domestic and foreign trade and has just present- ed a set of figures of net operating re- sults for the March quarter that would argue for lower dividends if the car- - | riers had not adopted in recent years a conservative policy, both with respect to payments to shareholders and dis- bursements for maintenance. There has been no serious suggestion that any one of them would be compelled to re- duce its dividend rate, in spite of the fact that the past six months have been the most trying they have experienced in years. In other directions conditions are satisfying. The January and February gross and net earnings of the public utilities, exclusive of the telephone and telegraph companies, were in excess of those in previous years. Movements in public utility stocks not only represent this situation, but the steady shifting of control of properties from one group of bankers to another at pyramiding prices. The oil industry slowly is emerging from the effect of its excesses. Reparations Loan Near. The establishment this week on a working basis of the Bank for Interna- tional Settlements brings nearer the of- fering of the $300,000,000 reparations loan, in which the American market has an intimate concern. The amount ap- portioned to this country is small in comparison with some of the domestic issues that are presented from time to time. It would not seem necessary therefore, that any great amount of 51‘0D§‘Btlndl ‘would be required to intro- luce it. ‘The American investing public is fa- miliar with dollar loans today, though it had to be instructed in them when the original French, Belgian and Ger- man government issues were brought out here. No loan, however, foreign or domestic, ever goes well when stocks are unsettled. This may be one of the rea- sons why so many people feel that the speculative market be kept on an evel keel until after the loan has been presented in June. (Copyright, 1930.) STOCK FOR EMPLOYES. Pennsylvania Railroad has asked Interstate Commerce Commission thority to issue and sell $18,000, $50 par common k to officers and employes at par, Stock will be paid for in monthly installments deducted lromulnriuwduuptoceeumw be used for corporate issue, it is es 1| Arizona, Cerro di ‘The * $6,598,600. Business News m Retrospect The Copper Stocks Should Make a Speedy Recovery as Soon as Conditions in That Industry Are Re- stored to Normal. BY L A. FLEMING, ‘Washington people, and for that matter investors and some speculators, familar with the situation in the world's copper markets and especially in our own, which is dom- inant with this country by far the chief producer, are watching with tense interest the unusual movement to lower values that underway for sometime. It is admitted that it may be nec- essary to cut the annual dividend rates of the two great producers, Anaconda and Ken- nicott, while many contend that even ‘with the slash, pres- prices more L A. Fleming. ent than discount the worst ble. Looking for a cause for the continued weakness one finds it readily in the general slump in Lndun.ry. for the metal is very generally used in many indus- tries and is the basis of many. Just as soon as there is a general betterment in business and in mass production among our manufacturers, that activity to which we are used, the metal will be in demand and the recovery in price will be speedy. Those who have confidence in “the coppers” know that this is true, but their chief interest at present concerns the probability of delay in business ?;:::Em:;n and the pogéfllty of being carry their sf until the become a burden. o America’s most important financial |y, men have added to their fortunes through ownership of copper stocks, notably, Guggenheims, Mt 2y« en al arles Mitchell, Per A. Rockete]ler John D. Ryan, John lc)y Kelly, Sfiephen Birch, Dlniel C. Jacklin, Walter Dodge, N. F. Brady and Arthur C. James. Congress Favored Producers. Congress permitted the copper pro- ducers of this country to unite in price- fixing, so that all exports of the metal are priced at 18 cents a pound, irre- spective of the home price; and to make it more binding American copper inter- ests practically control South American production and, with their subsidiaries, have large interests in African mines— more or less of a real monopoly, Production in America has rarely m E‘l,x:gedor t.helum!t. but in 1918, nce of ener 969,000 tons were mined. s ayed Pmocu Ordered. Active b before the st tober and llnee '-Iut have been vunulng Dlaie Sovmmman o accumul of surplus stocks in the hands of producers. In order to dispose of this metal on the 15th day | v of the present month, the leadin pl’l)- ducers met and agreed to make t! port price 14.3 cents a pound, while t.h price for domestic use was dropped from !8 cents a pound to 14. ‘ This cut was intended also to stimu- late an export demand, being the low- est price for years. Women Favor Copper Stocks. quiry at brokers’ offices eonflrm.s me bellef that investments in cop stocks for the account of wnshlnmnl women traders, investors and specu- lators are very heavy. They have made money in these stocks and are confident of making a great deal more, once con- ditions in the industry are brought back to a normal Their investments are not confined to commitments in the shares of the larger producers, but also include holdings of Calumet & Hecla, Nevada, Calumet & le Pasco, Miami, In- spiration and other active producers. Referring to the recent price cut, a bulletin reports as follows: This reduction has come and with T From the Buyér's stan m yer's dpoint, this is & 22 per cent reduction. From the pro- ducer’s standpoint, the decline is much more severe. Cost of production varies with producers. The following table stresses the per cent of profit reduction estimated for a group of companies and for that reason is distinctive from ta- bles that have been published: P 105 5 08! 034 ‘083 l’llh lllt Oc- time consumers Oor 1. Kennecott P erto S, de ‘Baseo Phelbs-Dodse Cafumet & Fec ‘060 ‘052 (040 042 Savings deposits are increasing stead- ily, and high-grade bonds are wanted. ‘There have been so many closures un- der deeds of trusts in this district, where returns have not been sufficient to care for the loans that they are sup- posed to cover, that real estate bonds are subjected to very close examination. Takes Credit, The Federal Reserve Board, in its re- port to Congress, takes credit for alding in bringing about the liquidation of brokers’ loans through the various warnings sent out—warnings that jarred ‘Wall street and caused many caustic remarks as to the duties and rights of the board to mix in security matters. The statement that the banks were in good condition after the big break may be true as to our large city insti- tuunm. but thgre were many interior banks holding the bag and’ worrying desperately, — RESERVE BOARD STILL TALKS OF SPECULATION “The protection of Federal Reserve credit against diversion into channels of speculation constitutes the most difficult and urgent problem confront- ing the Federal Reserve system,” Fed- eral Reserve Board says in its annual repon for 1929. The practicability “direct pressure” as a method of control Wl-l demonstrated last year, the board adds, referring to its famous l'emmry 1, 1929 warning. not hfln' “direct pressure” will Ifs uud the report leaves the Ll.nct 'rrewon that the board was satisfied results of its Feb- ruary 7 actio BUILDING PERMITS, Value of building permits issued in Baltimore this r to April 1 totaled total, however, does not include the 20; allowed for under- tion. $6,000,000 in 1030 to the Pennsylvania. valuaf 3 hand-to-mouth i, e INCREASE IN TRAD ACTIVITY REVEALED THROUGH U.5.DATA Commerce Department Re- ports Show Moderate Re- vival in Industrial World. BUSINESS VOLUME GAIN RECORDED DURING WEEK Check Payments Nearly 7 Per Cent Higher Than Those of Pre- vious Period. By the Assoclated Press. Business conditions in the United States as summarized in Government figures for the latest week on which data has been compiled, showed definite increase of activities. Increases in ‘vroducuon in several lines, increases in checks drawn on banks, and increased building activity were included in the showing. “The volume of business for the week ending April 19, as indicated by check payments, was nearly 7 per cent higher than for the previous week, but about 8 per cent lower than the same week in 1929,” the Commerce Department's summary of the business situation at { home and abroad said of the period. Steel Operations. “Operations in steel plants during the latest reported week were the same as two weeks ago, and a little higher than one week ago, but below last year. Pro- duction of bituminous coal was less than last week or the same period in 1929. Petroleum production was slight- ly greater than a week ago and showed a decrequ of about 2 per cent from a “Thz value of building contracts rose more than 11 per cent over last week but was less than for the corresponding period of last year. “The general index of wholesale prices was fractionally less than last week and 6 per cent below that for 1929. There was very little change in the composite iron and steel price from last week, but it was more than 6 per cent lower than last _year. “Bank loans and discounts at the end of the week were about the same as.a week af Prices for stocks remained about the same for both periods while bond prices were very slightly below last week and fractionally higher than in 1929. Interest rates remained un- changed from a week ago, but still about 50 per cent lower than a year ago.” Forelgn Situation. From noted as Canada, the summary “siy which point to an improvement in trade,” the opening of Great Lakes navigation, better collections and more active factory operations. Mexico, among neighboring countries, was cltule.fl as showing dull condmnm dur- ‘weeks. dia was added by the review to the list of world countries experiencing un- favorable trade and employment this Spring, a specific cause being assigned in the disturbed and semi-revolutionary state of its politics. BRAZIL LOSING GOLD BY U. S. PURCHASES York on Eve of Coffee Loan, Spectal Dispatch to The um NEW YORK, April in- coming stream of gold, vlhlch this month will exceed the March total of imports of $55,768,000, is one of the anomalies of the exchange situation, in that it is_subtracting from the gold supply of Brazil, which needs it, and adds to that of the United States, which flre-dy has much more than is quired to maintain the position of this country. ‘The movement from Brazil now cur- rent amounts to $45,000,000, and comes on the eve of the so-called coffee loan, which will be distributed among in- vestors here and in Europe. After the break in stocks last Novem- ber there was a heavy outward move- November and in $102,- 000,000. This eventually found its way into the vaults of the Bank of France, the Bank of Germany and some of France now boasts of having a_very high ratio of gold to all of the gold ln the world, but there is considernble criticism on account of the fact comparatively little use is being made of this credit in restoring the broken down conditions in trade and in finances elsewhere. gold due to imports into this country | and from Japan and South America, which in the March quarter were $128,850,000 and to the end of April will be nearly $160,000,000. There have been times when the rate of exchange seemed to threaten London’s gold supply, but compensating conditions have so far permitted this to remain intact and to be built up to a very satisfactory figure. The effect of the gold now being re- ceived in this country is naturally that of a further easing in money rates, but as the commercial demand for funds is low and, in spite of the steady in- crease in brokers’ loans, Wall Street accommodations are liberal, the situa- tion is not one that compels additional imports of the yellow metal. So a (Copyright, 1930.) —_— COTTON SHIPPERS SEEK PARLEYS WITH BOARD By the Associated Press. MEMPHIS, Tenn., April 26.—The American Cotton shlrpers Assoclation today adopted a resolution authorizing appointment of a committee by the in- any other action it may deem necessary in connection with requests that the association demand a congressional in- vestigation of the farm board and allied co-operatives. ‘The resolution was recommended by the association’s cotton economics com- mittee, which had debated proposals that the association ask a congressional investigation. The Southern association and the Memphis exchange had charged that “market manipulation” by the board and * afiated co-operatives damaged the shippers and the market cost i ‘cncul. v Heavy Movement of Metal to New | ment of gold to Europe, amounting in | i December to t|of the SUNDAY MORNING, APRIL 27, 1930. Classified Ads Pages 5 to 12 NEW HEAD OF ASSOCIATION FORMER WASHINGTONIA Fountain F. Beattie Was Stu- dent Here Before Starting Banking Career. President of Greenville Insti- tution Is Notable Figure in Southern Finance. Fountain Fox Beattie, recently elected president of the Stockholders’ Associa- tion of the Federal Reserve Bank of Richmond, is president of the Pirst Na- tional Bank of Greenville, 8. C., and llso president of the Pledmont swlnlt & Trust Co., in the same city. He is & former resident of ‘Washington, having been graduated from the George Wash- ington Universnty Law School in 1902, receiving the degree of L. Born in Greenville, s c " July 29, 1878, he attended private schools and Furman University, later studying at the University of Michigan Law School before coming here to finish his course. He was admitted to the bar in South Carolina and practiced law in his home State for several years. He served as a member of the South Carolina House of Representatives in 1905-1907, being a member of the judiciary c ttee. Mr. Beattle was atf banking profession and in chosen assistant secref president of the First National Bank. ‘These banks are closely affiliated and it was not very long before he was presi- dent of and a director in both institu- tlons. new head of the Stockholders’|savin, Amclmun is one of the leading bank- ers in South Carolina. He served as vice president of the State Bankers’ F. F. BEATTIE. Association in 1927-1928 lnd as presi- dent of the organization in 1928-1929. He was vice president of the Richmond Reserve Bank Stockholders’ Association last year. Many Washington bankers were present at the annual meeting the g'.het.r day when he was elected presi- len During the World War Mr. Beattie served as county food administrator; chapter chairman, American Red Cross; county chairman, second liberty loan campaign, and county chairman, war stamp campaign. He is a mem- ber of the Protestant Episcopal Church, the Chi Psi Fraternity, is married and has three children. INVESTMENT BOND MARKET IS DRAGGY Heavy Load of New Offerings Causes Price Recession in Week. Special Dispatch to The Star. NEW YORK, April 26.—The invest- ment market ran along this week in the same familiar rut that has held it in its grip—with the exception of the spasm of active strength in mid- March—these many months, While money rates continue low and should result in an upward move were other mfluem:u absent, the volume of new nflenng 50 large as to pre- clude the possibility of any general ad- vance. Bonds were weak at the beginning of the ?{.’k and dropped ‘::m more in easing o bl-nkers‘ acceptance rates, followed hy a reduction of time money to 4 per cent for 90-day bills, on Wednesday gave the market a start, and it re- traced the ground lost in "the first two sessions. But new offerings piled up, until the week's total was about $165,~ 000,000, compared with $98,504,000 the week before and $182,111,000 two weeks ago, Midweek Gains Lost. Such a smothering load could not be without its depressive effect, and the midweek gains were lost. At the end of the week the averages for both do- mestic and foreign bonds were off about half a point from those of the week before. ‘There is nothing to suggest that any radical change will be brought about in the money market in the near future, even though it is known that the Fed- eral Reserve authorities have every de- sire to stimulate business activity through maintaining low interest levels. Appnmntly there has & higher stabilization of rates following the March low level, and this, together with the continued flood of new offerings, has kept the market in a neutral con- dition. As a result, while bonds are hardly cheap enough to justify large institu- tional bu merely for the sake of securing ins, they are not high enough to reflect the true cheapness of money. The market has behin the sharp changes in the cost of credit but, nevertheless, with a sustained rise the investment holdings of banks, should seek higher levels in time. Another factor that should help along the eventual advance is the con- tinued “grooming” of outstanding issues B et g i e, T n a) u; 3 when sections of the !nreign dep-rt- ment maintained strength in the face general dullness. !br instance, Chilean bonds opened the week very active and remained so, obviously aging the announcement of the Cl $25,000,000, 6 per cent, at 91%5. Thn outstanding 6s had sold around 93, but dipped to the offering level reluctlm.\y and hung there, securely “pegged.” Japanese Issues Strong. Japanese issues were kept up to their best prices of the previous week, ap- parently to prepare the way for a $100,~ 000,000 loan for which the Tokyo gov- ernment is negotiating in this market. Coffee state bonds were tllppoflfid ad- vance of the issue of the Sao Paulo $100,000,000 coffee nlbll)utkm loan, of which about ‘35000000 is Ne" York’s slice, the rest going to Eu In the domtfshc list, “the mt{mt active group was the obligations of amuse- mentn companies. _Persistent rumors of a merger between Radio-Keith-Orpheum and Pathe resulted in a rapid advance of affected securities, Then the refi- nancing scheme for the Fox Film and Fox Theaters, initiated with a $30,- 000,000 issue of new General Theaters lqulpme‘nz 6s, brought the spotlight to bear on the old nxu ‘The municipal market continued to present a tij ht situation. Few new offerings .of . high merit were brought out during the week, while at the same time there was considerable hrnylng !or ivate account of what the on their shelves. An imta.nce wu the picking up for one account.of $10,- 000,000 New York City bonds, leaving & virtual scarcity in this particular type of security. The situation will be some- ‘what relieved early in May when West- chester County, with a $19,775,000 offer- lnz of improvement bonds, and other vic groups come into the market. Real Estate Loans. Meanwhile the market is far from being & gauge of the cost of money in other directions—real estate, for instance. While there was an instance during the week of the financing of a large building in New York at a cost of 5% Yer cent, this was exceptional. Onah lding loan was put out at a of over 7% per cent, and dealers that in the case of less known - ELEGTRICAL POWER OUTPUT INCREASES Gain in Consumption Occurs This Month—Outlook Appears Good. BY J. C. ROYLE. Despite the slump in industrial pro- duction, the consumption of electrical power is showing decided improvement over recent months. The average con- sumption dafly is approximately 280,- 000,000 kilowatt hours, This compares with an approximate daily average of 254,100,000 in February. There has therefore been s gain in efln:lm:y and mechanization despite the drep in industrial production. The power consumpi figure is about as accurate an Imuuwr of the pmmlain( fumre of the electrical industry as could Sees Output Doubled. ‘The industry is not yet 50 years old, and 70 per cent of its growth was made in the last 10 years. Matthew S. Sloan, president of the New York Edison Co., predicts that the present daily output will be doubled within the next seven yunt, wichln consequent doubling of ‘This means that practically every bit o'fm eltencmul eent.rlj suuon equlpment years, stations will be rejuvenated twice or , since even today stations built five years ago are regarded as obsolete. What this means to the electrical equipment industry is almost impossible to compute. At least it indicates an output during that time of several bil- lion dollars. As yet only 35 per cent of the elec- trical energy generated comes from water. power. Fuel-generated current will never cease to be a factor, accord- to Government officials, since it % supplement. Bydro-eicctiic power in supplement ec times of low water. Mass Production. Secretary of Commerce Lamont and Mr. Sloan both place extreme' im=- portance on the development and main- tenance of mass production as a factor in business prosperity. Mr. Lamont d | states that mass production depends on steadiness of employment. Mr. Sloan with this but goes still further, stating that it is electricity Whlch moves the machines which make goods in mass production. It is thz American policy, he adds, to pay labor in ratio to output, and as a result of the aid of electricity the “American worker draws wages higher than those paid in any other country— twice as high as the rate pald in the next most prosperous nation.” “Our job,” Mr. Sloan declared, “must always be the seeking of ways to make it cheaper to use electricity than not to use it.” He predicted an annual consumption of 200,000,000,000 kilowatt hours in 1937, or sooner. He finds no saturation point for the consumption of electricity in sight. (Copyright, 1930 —_— POULTRYMEN ARE URGED TO PARE DOWN COSTS Spectal Dispatch to The Star. BALTIMORE, April 26.—Maryland poultrymen durln: the coming year may well devote effort to lowering pro- duction costs and improving market quality of their eggs, together with more efficlent marketing methods, rather than expansion in the number of birds kept, as the outlook is for somewhat lower prices, according to & report is- sued by the University of Maryland ex- tension service. According to the re) rt. feed prices Wwill likely be lower, so ratio should remain fairly constant. There were 50 per cent less eggs in cold storage on January 1 than at the same time last year, and 42 per eenc less than the five-year average, the re- port says. Storage operations have been mflt‘b}e Amzh:lve lk"t":drl. favorable uence on the market during the past Fall and Winter, and this . e fion promises to continue. &wnu tors, the costs are still prohibi- hange ing an average yleld as high as 7% and 8 per cent for medium grade issues and between 81, and 614 lol' the best grade. Some sizeable rail equipment issues are expected shortly. They will come at a good time, as there is always a good demand for this classification of bonds and just now there are hardly any in the market. “(covrriant, o0 FEDERAL RESERVE CHANGES URGED IN WARBURG TREATISE New Book Suggests Methods of Strengthening Structure of U. S. Agency. PREVENTION OF CREDIT CRISIS DECLARED VITAL Conflict of Authority Between Banks and Board Held Draw- back to System. BY JOHN F. SINCLAIR. Speclal Dispatch to The Star. NEW YORK, April 26.—Paul War- burg’s new book on “The Federal Re- :for;: System” raises three serious ques- 1. How can the board’s authority be preserved intact for future credit emergencies? 2. How can the conflict of authority between the Federal Re- serve Banks and the board at Washing- clarified? 3. How can “bootleg” 101& be better controlled? meet question No. 1 Mr. Warburg suggests (a) having the governor chosen by the board members; (b) having the chairmanship of the board filled by the governor and not by the of the Treasury, as at present, and (c) al- lowing the President reappoint a member of the board his name confirmed by the Senate. This, he contends, will eliminate political in< n“n'a-}“'w.mn would sol esti solve question No. 2 by hwln: four delegates, chosen by Federal Reserve banks, sit .nd vote with the Reserve Board at mnnthly meetings. For the better control of “bootleg” loans—question No. 3—he proposes that every member bank, lending “on call,” should “set aside an amount equal to a glvm probortion of the fund so em- ployed, and invest the amount so with- held in eligible acceptances or loans thereon.” As an original member of the Federal Reserve Board for four years, the father of the rediscount system incorporated into the Reserve system, as a student of central policy throughout the world, Mr. Warburg's statement deserves the widest Mn’s “Does it not seem absurd,” asks thi Ne; ankh‘;b:!l;ke'bré "Lh:et‘ %&umlmflc guidance s gratefully accepted in the face of the actual occ{m'enee of a grave calamity, but should be re- sented when connected with an effort ta forestall it? Is it not childish that we should be willing to fight an epi- demic after it has spretd. but should be unwilling to localize. the disease be- fore it has got beyond meon':ol?" Mr. Warl bam 's latest. be read by all ughtful Jhldflfi ol Fed- eral Reserve procedure. wbuld hl\'e talked lbou! "Mfl g gold base of the world so that will 'be no injurious effects on coms miodity price levels which might inflict 10ss by undue fluctuation?” Yet this is what Julius H. Barnes dis- cussed with the American publishers in New York. Gold is a very basie factor in busi- ness gosperny. but few of us give any It was when thll business leader that today one-fifteenth Nd world’s o ulm.lan (that is, tates) perf he struck a responsive cord. Put sim- ilar methods into practice in other parts of the world and see what hap- pens! Surely then a vast expansion of the world’s wealth and improved stand- ards of living in backward nations wou‘i% l:h it in this “To say tha ‘world of limit- less aspirations, with uther than a temporary lnterl the march of mt&?fl “:.in!un future,” fails to grasp '.ho vlau of e i com) X opment when mmm% l. muo overcast, .'n, Milk Prices Stabilized. at great center of New ‘York lnfl its vicinity, m‘u to get wholsesome, clean milk cheaply and rapidly. ln approving the $4,000,000 loan of Dairymen’s League Co-Operative Assochtlcn Inc, the Federal Farm Board paved the’ way for the associa- tlon m arry out its uu-ee-ym pro- lnd prlzléndunx !%ueu for the sale os its um application for of the asso- ciation and found thlt the 40,000 dairy farmers .of New York, Pennsylvania, New.. Jersey, - Vermont, Massachusetts and . Connecticut were their business on & sound basis and Ju asseciation’s financial structure and fiu service it is rendering in this section of the country is excellent. ‘The Farm - Board's policy of helping those who help themselves (by co-oper- ative methods) continues. It’s one of their major policies—maybe the best of “Talkies” Are Expanding. The “talkies” are spreading. Chile has: heard its first “talkie,” a musical revlew, and is pleased. Italy, Greece and Turkey are feverishly preplruu 'n receive sound pictures, according to Department of Commerce report, u 61 motion picture theaters in Italy have been wired for sound, uven theaters in condition |18 o erican equipment fa sug!l:uy more than European eq'ul‘ ent. m-reed price . e 0, le's. leuflhz dlr:cmr of l-ha md & in tho Unlted Sflm at '.hdH e present “anve phyen with native dlnctan are’ the only solution,” says Delano. « ight, 1 N rican News- (Copyright. 1930, by North Ame: N .SHARES TO BE LISTED, The 247,489 °_additional mm Chesapeake’ & Ohlo Rallway common mck which will be listed on Ne' York Exchange when action is taken on pendlM application, repment the shares which will be exchanged in .equuuon of Hne.km. vnuy Rallway. muu;’f :v. o8 O. Shars lw‘