Evening Star Newspaper, May 6, 1930, Page 12

5—12 THE EVENING STAR, WASHINGTON, D. C.. TUESDAY, MAY 6. 1930 INIPROVED RUBBER TRADE IS FORECAST Elimination of Competitive Methods and Closer Organi- zation Believed in Prospect. | | When smaller and weaker rubber | companies have passed out of existence in the next year or two. and when resent disturbing competitive methods Th the industry have been eliminated, the “Big Five" in the rubber industry will survive current unsettlement and prosper increasingly, it is predicted in a current issue of the Wall Street Journal. In discussing the rubber outlook for the year, the Journal says: “"There has been considerable quiet buying of the dividend-paying rubber | stockd recently. ~Although the first | quarter of the current year has been a lean period for the tire manufacturers, the industry looks forward confidently | to the final three-quarters of the year to produce the biggest volume of re- placement tire sales in history. “Margin or profit on this class of business is much larger than on orig- lower automotive output, naturally will show a big decrease for the year. “With many motorists driving last year's cars, the demand for tires for replacement must inevitably be very large as soon as warm weather comes. “The current low price of crude rub- ber and the possibility of higher quota- tlons before the end of the vear lend a speculative flavor to the securities of | the strong rubber companies, which | would profit substantially from in- | creased inventory valuation at the end | of the year. | “Students of the industry believe that through consolidation and the passing out of the picture of the smaller and weaker companies over the next year or two, the industry will be strength- ened greatly. | “They argue that the big tire pro- ducers (such as General and the four | other large rubber companies), will sur- | vive the current unsettlement in Lhci industry and eventually will prosper, | after elimination of present disturbing | competitive methods.” | Baldwin Locomotive Orders. NEW YORK, May 6 (#).—Unfilled | orders of the Baldwin Locomotive Works May 1 totaled $20,927,446, against $23,504,430 January 1 and $17,564.966 May 1 last year. Business booked in months ended April 30 amounted to $7.887,401, against $15,495.316 in the | similar period last year. Shipments by the company’s works in Philadelphia in the four months ended April 30' reached $10,566,429, ocmpared with | inal equipment sales, which, because of | $3.423.830 for the like period last year. | Washington Ticker BY CHARLES P. SHAEFFER. Associatea Press Financial Writer. ‘There is a growigg sentiment that the present, method of disposing of the net profits of Federal reserve banks after the payment of dividends should be altered, to the end that member banks may enjoy a larger share. This is pro- posed partly in the interest of equity and partly for the avowed purpose of “making membership in the system more attractive.” A number of different proposals have been made, and several bills dealing with the subject have been introduced in Congress. 1In this connection the Federal Reserve Bank of Richmond has prepared a comprehensive study of the possible distribution of earnings under two of the leading plans proposed. Plan No. 1 is the distribution pro- posed in a_bill by Senator Fletcher, Democrat, Florida, a member of the banking committee. It provides that | after the regular 6 per cent dividends have been paid by a Federal reserve bank, the amount remaining, if any, shall’ be added to the surplus fund of the bank until that fund equals the sub- scribed capital of the bank and that thereafter 10 per cent shall be added | April totaled $1.670,000, against $1,648.- | to the surplus and the balance dis- 1985 in April, 1929, and for the four tributed among the stockholders. Distribution scheme No. 2 is that em- bodied in a bill by Senator Glass, Demo- crat, Virginia, ranking minority member of the banking committee. This bill provides that after regular 6 per cent dividends have been paid one-half of the remainder shall be paid to the member banks as an extra dividend,|district would be as follows: Boston, one-fourth of the remainder paid to the | 251 per cent; New York, 0.48 per cent; Government as a franchise tax, the re- | Philadelphia, 2.05 per cent; Cleveland, maining fourth to be added to the sur- | 2.09 per cent; Richmond, 3.26 per cent; plus of the bank until it reaches 100 | Atlanta, 4.67 per cent; Chicago, 3.20 per per cent of the subscribed capital, or |cent: St. Louis, 2.02 per cent; Minne- 200 per cent of the paid-in capital, and | apolis, 4.75 per cent; Kansas City, 2.74 the balance to go to the Government as | per cent; Dallas, 3.31 per cent, and San | an additional franchise tax. Francisco, 1.87 per cent. If ali amounts | Neither of the two bills makes it |available for extra dividends are pooled iat all clear whether the extra divi- |and distributed as an extra dividend | dends are to be paid by each Federal |uniformly to all member banks in all | Reserve Bank to its own member banks, | Federal Reserve districts, the result jor are to be put into a common fund would be an extra dividend of 1.73 per | for distribution among the members of | cent. all Federal Reserve Banks. Conse- | Quently, in_the following statistical | Considering the system s & Whole study the Richmond regional member | #Nder Whe Fletelor BIOK, Ao O e | { endeavors to show the effect of both | ta% WOW B etk vt ot extea| | methods of distribution. | e 10 1 BT I30) tat | " Using the six-year period ending with | dividends amounting to $3.52%.35% ber 11920 as & working basis, the survey |aDnum would be paid. Under te 5% | attempts a forecast under the two plans | Plan the e e omaaas | for the six-year period ending with | tax of $1,941,996 per annum, would a 1935. Under the Fletcher bill it is |0 surplus $1,432323 per annum and de- | found that there would be mo extra |clare extra dividends amounting to| dividends in_the following districts: $3405.269 per annum. 5 v elphia, Cleve- | In deciding whether or not a more | E?é?‘(’:‘h{"c’n;oy:r:g'sl:}:];?'lxgcum. while }Kl‘nemus distribution of earnings among | |the remcining six Federal Reserve Mmember banks would make the system Banks would be able to pay to their |more attractive, the Richmond member members extra dividends at the follow- | suggests the following facts should not | ing rates: Richmond, 6.08 per cent; | be lost sight of: If a member bank has Atlanta, 4.09: St. Louis 3.50; Min- | deposits of $1,000,000 and capital and | neapolis, 9.51; Kansas City, 5.48, and |surplus of $200,000, it holds stock in the | ! Dallas, 4.83. If the net earnings avail- | Federal Reserve Bank (based on capital | able for extra dividends are pooled and | and surplus) amounting to $6,000. On | paid out uniformly to all members in | this it receives an annual 6 per cent all districts, members would receive an | dividend amounting to $360. Therefore. extra dividend of 0.78, or about three- | the addition of each 1 per cent to the | fourths of 1 per cent. | Federal Reserve dividend rate would Under the Glass measure the extra | mean an additional income of $60 per dividends paid in each Federal Reserve 'year to such a bank. | 2, 0Oil Stocks BY GEORGE T. HUGHES. (This is the nineteenth of a series of brief analyses by Mr. Hughes of the principal oil stocks. The intent is not to recommend the purchase or sale of any particular stock, but to - give the investor such information as may enable him intelligently to chart his own course.) Conducting not only an ofl business, | products, | in| but marketing asphaltic Warner-Quinlan Co. is _interested both the petroleum and the asphalt trade. The corporation had a good year in 1929, earnings on the 632,948 shares of no par value stock outstanding on January 1 last being equivalent to $2.72 a share. Comparison with results in 1928 is not readily made because during 1929 the corporation acquired the controlling interest in the Municipal Service Cor- poration, which operates service stations doing both a wholesale and retail busi- ness in gasoline and oil in New York State. The company is conservatively managed. Out of the earnings given above the sum of $358,000 was charged off to adjust crude oil inventories to give effect to the reduction in price made January 15, 1930. Taking into account this charge-off earnngs would be $2.15 a share. In dol- Jars the net profits for 1929 was $1,722, 955, or taking the charge-off into ac- | count $1,364,955. Last year dividends lon the stock were paid at the annual rate of $2 a share, but on March 3, 1930, the directors reduced the rate from 50 cents to 25 cents a share quar- terly, stating that the reduction would enable the company to take advantage of prevailing low gasoline prices, ‘since it purchases a substantial part of its re- quirements in the open market, and that it hoped the rate could be re- stored before the end of this year. Recently it has been reported that other companies were negotiating to ac- quire_ Warner-Quinlan, Cities Service and Standard Oil of New Jersey being mentioned in this connection. ~Share- holders vote May 5 on a proposition to increase the authorized stock from 1,- 000,000 to 1,500,000 shares. Rights are to be offered present holders to buy ad- ditional common at 18 in the proportion of one for five, the purpose being to raise funds to increase working capital and to reduce bank loans. Under this set-up it is plain that the stock is en- tirely sneculative. There are, however, some $7.000,000 in 6 per cent convertible debenture bonds, due March 1, 1939. These bonds are convertible into stock at 50, which is, of course, well above the present market. Still this priiviege may be profitable at some future time and meanwhile the bonds sell to give a ma- | turity yield of over 7 per cent. SILVER QUOTATIONS. NEW YORK, May 6 (#).—Bar silver, 421, ALL-ELECTRIC OIL FIELD IN KANSAS HELD FIRST , By the Associated Press. WICHITA, Kans, May 6—Kansas claims the first all-electric oil field in the world. At the Greenwich townsite, where the legs of the ofl derricks nearly in- tertwine, all pumping and drilling op- erations are carried on with electrical power. The system offers advantages in fast work, operators say. The first major ofl field electricifica- tion project in the United States was carried out in the El Dorado feld dur- ing the 1917-18 boom. KARYi;ND TO’BACCO PRICES. BALTNMORE, May 6 (Special) —Re- | ceipts of Maryland leaf tobacco last | week showed ‘a decline totaling 111 hogsheads, of which only 52 hogsheads | were sold, leaving a stock in State to- | bacco warehouses of 1,777 hogsheads. | The quality of recent receipts has shown no improvement, according to State in- | spectors. Quotations today for Mary- | land leaf ‘per 100 pounds: Inferior, 7.00a12.00; sound common, 13.00a20.00; | good "common, 21.00a30.00; medium, | 31.00240.00: good to fine red, 41.00a | 51.00; fancy, 51.50a52.00; seconds, com- | mon "to good common, '7.20; medium, 21.30: good to fine, 31.00a40.00; upper country burley, nominal; ground leaves, 6.00a24.00. ! Australia’s population is 6.284.407, ac- I cording to figures recently issued Know your government--- UNCLE SAM AT YOUR SERVICE Bureau Of Standards Vs. Old Man River By Quig Staver and Hugh Hennesy = RN I ,Dz'a’ u bu a 1930 model In be satisfied with - 1920 performance? PROUD of your car? You have a right to be. Real engineering brains went into the development of that fine engine. Buy the best gag and oil? Good business, too. Chemical engineers have done won- ders with fuels and lubricants during the past few years. But the finest engine design and the best of gas.and oils cannot defeat the ONE GREAT ENED‘/IY OF MOTOR EFFICIENCY ~ C-a-r-b-o-n. How to GET 1930 Performance! Use Carbo-Solve every 500 miles—Carbo- Solve, the astounding new chemical carbon remover that is sold only under a positive Money-back Guarantee. g Carbo-Solve, keeping your engine free from carbon, will give it the chance to do the wonderful things great automotive engineers have spent years in perfecting. Carbo-Solve keeps Carbon defeated —50 Million Dollars in resources of the Alemite Corporation is back of that FACT! Below is where you can get Carbo-Solve and Carboe Solve Service. You may have either the full installa- tion or get a shot of Carbo-Solve with @ Shop Gun for the price of one can plus a minimum service charge. ol fake. BY THE MAKERS OF.-ALEMITE L e a e s o e The speed of the car th extreme accuracy, The meters, in tow, are then adjusted so that they record the same speed as the ear is traveling. Approximately 100 of these delicae “propeller yardmicks® are tenied annually. Hydraulic engineers require accurate data 1o plan great levees and dams. To know s centricities, its flow must be measured every River foodo—raging torrents, thick with the debris of their ruthless jon_down_ peaceful, prosper. ous valleys,—it would seem, should be far distant from is controlled any “water currest meters” which have been shipped in for testing, and we realize that this Buress, 100, must be fighting Old Man River. UNCLE SAM AT YOUR SERVICE .. . anew feature pictorially explaining reat ly . onnected propeller which ticks to their car-phones, wnd though the water is siat the speed of the Sow, by an electric car, (reverse-aeti Tomorrow—Part Xi, Bureau of Standiards Observarion Above is reproduced in miniature owe of the many interesting activities of Uucle Sam that will appear every week day in THE STAR. Buy This Positive Proof Package Today M You're Not Satisfied— ‘we'll return your moaey without & word! the functions and operations of The United States Government, appearing exclusively in THE ST AR, beginning Monday, May 12th. ASHINGTON, the seat of the Federal Government, is, to a great- extent, peopled by Uncle Sam’s efficient workers who shoulder his DISTRIBUTED BY ALEMITE COMPANY OF WASHINGTON. 2018 12th St. N.W. North 8576 great tasks. In order that each member of the more than 110,000 families who read THE STAR may know the functions of Uncle Sam’s varied and many activities, THE STAR inaugurates a new feature which JOBBERS National Electrical Supply Co. 1330 N. Y. Ave. Natl. 6800 DEALERS F. 469 . May Hardware Co. St. N.w, Dist. 3063 Southern Wholesalers, Inc. P c 1519 L St. N.W. Pec. 0130 2 = i e will explan'_n every phase of the United States Government in pictures and facts. Order your copies of THE STAR now so that you may not miss Northwest Motor Co. Bethesda, Md. Phone Wis. 3934 Riverdale Garage Riverdale, Md. Hyattsville 43¢ Riverview Service Station 6th and N Sts. S.W. Met. 6656 Auto Public Service Cerp'n 13th and K Sts. N.W. Nat. 3373 el et 6503 Ga. Ave. N.\W. Georgia 4176 Home Plate Filling Station 2045 Ga. Ave. NN\W. North 10191 Kingman Service Station 8th and M Sts. NNW. Frank. 8030 Koontz Service Station 1301 Good Hope Rd. S.E. Linc. 10298 Lakeman’s Filling Station 915 R. L Ave. N.E. North 9071 H. B. Leary, Jr. & Bros. 1612 You St. NW. North a single episode of this instructive and educational feature. Barker's Service Station W, 1705 S5th St. North 4798 Reed Brothers Rockville, Md. Rockville 67 Seaton Garage 45 Seaton PL N.E. North 1959 1615 Bladensburg Rd. N.E. Linc. 8495 Skinker Motor Co., Inc. 1216 20th St. N.W. Dec. 4640 Skinker Brothers + 4444 Conn, Ave. N. Clev. 0660 Standard Accessories Co., Inc. 5013 Ga. Ave. N.W. Ga. 0126 Uptown Auto Supply Co. 'zn'l 18th St. ,g.w. orth 4910—North 0068 Western Auto Supply Co. 728 13th St. NW. Met. 3956 O’Connell & Pratt 1617 L St. N.W. Bohrer's Service Station 8301 Wisc. Ave. N.W. Clev. 2634 Brookland Garage 1000 Mich. Ave. NE. North Call Carl, Inc. 614 H St. N.W. Dist. 2775 Cathedral Garage 27th and Cathedral Ave. N.W. Col. 6220 Chesley & Harveycutter 15th and You Sts. N.W, North 0743 Davis Garage, Poplar Hill, Md. Phone Brandywine 23-F-13 District Automotive Supply Co. $100 Pa. Ave. N.W. West 059 R. G. Dunne Filling 6th & H Sts. N.E. th & G Sts. S.W. 1021 "4298 Lehman’ 12th and K Sts. N. Nat. 0241 Mid-City Fill. Station 1122 18th St. N.W. Dec. 3924 Minute Service Station, No. 1 17th and L Sts. NW. North 1 Station, No. 7 Clev. 2318 @he Foening Star. Newspaper o Minute Service 3939 Canal Rd. N. Stations Line. 10282 Met. 7934 Mitchell Motor Co. ¥ La Plata, Md. Phone La Plata 28 The Great