Evening Star Newspaper, May 30, 1930, Page 13

FINANCIAL, CAUTIOUS BUSINESS ~ TREND CONTINUES Weekly Trade Reviews De- clare Situation Has Shown Little Change. Special Dispatch to The Star. NEW YORK, May 30.—Unseasonable weather "and the impending holiday tended %o repress business activities in the last week, and the general situation of trade, industry and commodity prices shows little change from the preceding week, ending the month with much the same tone and feeling as it opencd, according to the weekly reviews of trade and business. Bradstreet's State of Trade says. in art: “Taken as a whole, the respense early holiday offerings at ietail is not quite up to expectations. What is said to have been ideal planting and late weather conditions have attended the seeding of Spring wheat in ine old Northwestern area. What changes are visible fram the preceding week seem to indicate something like a slowing down in the South and at north Pa- cific Coast points, where a further eas- ing off in production of lumber has followed less-than-expected demand. “In the grain markets there have been recorded new high prices for May and, in fact, since mid-April in wheat, industries the two most dres are a further slight 1 in steel output, with some eclines of prices, whereas in the cotton manufacturing industry a Teport by cotton mill authorities is that 73 per cent of the country’s mill ca- pacity has sgreed to the curtaiment Pplans formulated some weeks ago. Heavy Buying of Steel. “In_the sieel trade the buying of Expe for gas lines is going forward in nse volume, one contract calling for the greatest length of pipe ever Tecorded. In the automobile trade, May output, in units, promises to equal April, due to activity in the small car division. “On balance, the general situation of trade, industry and commodity prices m little change, with an increasing ition to wait and see what the late Spring and early Summer growing season has to develop in the country’s goneral crop situation. This seems to point at the moment to the correctness of the view that while trade is scraping the bottom, as it were, definite changes upward are not yet in sight. “In other words, the trade ship is be- calmed, awaiting a favoring breeze, with retail lines awaiting the approach of settled warm weather for an impuise toward expanding sales, and crops, in the main reporting good soil conditions, prepared to take advantage of seasonal Rrowing weather.” Dun’s Observations. R.' G. Dun & Co.'s review says, in part: “The state of inertia and of inde- cision aithough less pronounced in some instances, extends to many slowing do additional branches of enterprise, while finan- cial movements reflect similar char- acteristics. The securities markets are favored by conspicuous monetary ease, but are more sensitive now to trade trends, there being an increased dis- position to take cognizance of actual existing conditions, “Appraisals made on the basis of Tuuue prospects bear a confident tone and the latent economic reserve power is considered reassuring, but the ab- sence of a broad and decisive revival is controlling factor at present. policies are being closely ad- hered to in most quarters, with a strong disinclination to operate beyond imme- diate or early needs, and the lack of vigerous de: ds serves to accentuate the rec:&;ign xg comux;xgdny p‘flceu,hu 18t the advan remains _chiefly with the buyer is evidenced by the 'n excess of declines in whole- sale tations, there being more than twice as many reductions as advances this week in a wide range of articles. Other statistical measurements also reveal downward tendencies, but com- with the records of a year ago should be made only with allow- ance for the fact that the results of the earlier period were exceptionally satisfactory. Encouraging Factors. “It was mot to be expected that re- turns of bank clearings, railroad freight traffic, production in basic industries and the various additional barometers of business would all show a quick up- turn from their rapid fall, yet it is en- g that the margins of decrease are slowly narrowing in some cases. commercial mortality, as reflected by the insolvency complilation, continues above the average, although seasonal betterment has lowered the totals ap- preciably from the unusually high levels of recent preceding months. “As in most other gulrkn. especially significant financial developments were lacking this week. Aside from some- what increased demands for funds for month-end and holiday requirements, the course of the local money market was without essential new feature. Only slight indications of a firmer tend- ency appeared in call loans, and the change was not sufficlent to affect the rate for such accommodation.” CHARGE SANDINO PLANS TO ‘SELL OUT’ Mexico Communist Party Declares Nicaraguan Has Turned Traitor to Cause. gy By the Associated Press. MEXICO CITY, May 30.—A state- ment issued by the Communist party of Mexico charged that Augustino San- dino, former Nicaraguan leader, had turned traitor to the cause of world anti-imperialism and had gone back to | 900 Nicaragua “to sell out to the highest bidder.” Sandino recently left his place of refuge at Merida, Yuca'an, and was reported to be bound for Nicaragua. Before going he discharged his secre- tary, Agustin Marti, charging. him with ‘befng a Communist, and a recent state- ment published in his behalf declared he would have nothing to do with eommunism. ' ‘The Communist statement, signed by Mernan Laborde, secretary general of the party in Mexico, said that Sandino agreed while in Mexico to wait &t ‘Merida for Communist orders to make & world tour against imperialism. ‘Then he received funds from other sourceés, the statement continues, and returned to Nicaragua to renew the fight beiween “small bourgeois groups” for control of the country. The state- ment added that the Uniled S:ates was willing to let the fight proceed “in order to hold the menace of a Sandino vic- tory over the Moncada government or enter into an agreement with Sandino himself if he gained sufficient power.” Laborde asserted that the Communist y had been Sandino's - principal Te. j ' ESTIMATED COAL OUTPUT. NE WYORK, May 30 (#)—The Na- tional Coal Association estimates the uction of bituminous coal dur% week ending May 24 at 8,300, net tons, as compared with 8,155,000 in the previous week and 8,285, tons in the week ending May 10. TR ity Ry Veteran Jeweler Dies. NEW YORK. May 30 (#).—August V. Lambert, who-in 53 years in business sold 750,000 wedding rings, is dead at %2. “Recently he offered a Pfln for old customers and recelved letters from mm folks who had been married 50 THE EVENING STAR. WASHI GTOX N, D. €., FRIDAY, ;MAY 30, 1930. COUPON ON REPARATIONS BOND ISSUE EXPECTED TO BE 54 PCT. Wall Street Believes Interest Return Will Be About 6 Per Cent, With Offering Price Between 91 and 92. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, May 30—There is a sharp difference of opinion concerning the price that should be fixed on the $82,000,000 American portion of the German reparations loan in order to have it “go over” satisfactorily. Inasmuch as practically every large distributing organization in the country will be represented in the selling syndi- cate, this diversity does not reflect the usual jealousies that obtain among com- peting grcups. It arises out of studies of the domestic and foreign bond situ- ation from various angles and with re- lation to the attitude of the investing public in widely separated sections of the country, with the result that there is & spread of from 2 to 5 points in the estimates of what a 5!, per cent bond of the type proposed should be offered at in order to attract generous subscrip- tions. Prevailing Belief. ‘The prevailing belief is that the bonds will be offered next week somewhere between 91 and 92. At the former figure, with a 35-year maturity, this 512 per cent issue would yield approx- imately 6.15 per cent and at 92 slightly over 6 per cent. The recent $50,000,000 Japanese government lcan was priced at 90, where the return to the buyer was 6.20 per cent. Subsequently it sold at a premium of 11, points. This loan was successful, not only here but abroad, with a heavy demand from Japan which covered a considerable percentage of the allotment. One in- stitution in New York alone had Jap- anese orders for $7,000,000 par value. The argument of those who feel that the German loan should be priced be- tween & 614 and & 61; per cent basis in order to move out quickly is that it is in strong competition as to yleld with other German government loans and loans in which the government has a close identity through the guarantee to which it has committed itself. Taking into account the fact that the forth- coming loan is of a special character, those who advocate a price between 91 and 92 maintain that, iike the German government 7s, it will be in a class by | itself and should not be considered as being entitled to a higher quotation | than the long list of German public utilities and institutional bonds with which the German government has an intimate connection. Members of the selling syndicate have | been canvassing their institutional and private investor clients and have had assurances that the new loan will sell readily, if the price is a reasonable one. It is understood there have been large advance subscriptions abroad, particu- |larly in France, where the recent offer |of the stock of the Bank for Interna- | tional Settlements was covered more | times than any other issue in years. It is expected a large part of the American allotment will be placed in the East and on the Pacific Coast, following the precedent of other German issues. German Borrowings. Germany has been the largest fore borrower in the United States. The present list of government, municipal, State, public utility, mortgage bank and industrial loans covers between 115 and 125 separate issues. The aggregate of these loans, listed on the New York Stock Exchange and on the New York Curb, runs close to $1,250,000,000. In the past six years since the German government 7 per cen: loan was issued, and particularly in the last two years. there has been heavy repurchasing of German dollar issues by German in- vestors, as well as for the account of Scandinavian banks. For a period in 1929, when new German loans were in- frequent, the quarterly redemptions under sinking fund agreements over- balanced the amount of new bonds be- ing placed. With easier money condi- tions abroad, there has been steady buying of these dollar loans for foreign account, owing to the high return they provided in comparison with foreign money rates. (Copyright, 1930.) UNITED CIGAR STORES SALES UP 15 PER CENT Special Dispatch to The Star. ° NEW YORK, May 30.—A proposal to reduce the par value of the common stock of ‘the United Cigar Stores Co. from $10 to $1 and subsequently to no par_was approved yesterday at the an- nual meeting of stockholders. George K. Morrow, president of the company, said the average net sales in the first four months of 1930 were 15 per cent more than in the corre- sponding period of 1929. The average increase in customers in the first four months of this year was 18 per cent, he sald. Individual sales during April numbered 21,000,000, compared with 16,000,000 in July and August last year, Mr. Morrow declared. ‘The company has retired $1,900,000 of an original issue of $2,000,000 of Whelan Drug Store bonds, Mr. Morrow sald. United, he added, now hss $4,500,- 000 in cash, of which $2,000,000 is on call. Mr. Morrow said April operations showed a profit. Store operations 1929 were conducted at a loss of $1,424,000. e CHAIN STORE SYSTEM OF SELLING SHOWS GAIN By the Associated Press. ‘The chain store system of distribu- tion, which is finding tremendous favor in this country, is becoming universally established in growng proportons. Recent trade advices to the Commerce Dej nt say this method has grown to include practically all lines of re- tall trade in England, while Australia is also falling in line on a large scale, adopting American ideas as well as equipment. ‘While America is known as the land of the chain store, the idea did not originate in this country. In this Eng- land antidates us by 10 years. De- partment stores, mail order houses and chain stores began to appear simultane- ously in this country during 1870. ‘The first successful British chain store organization was founded in the sixties by Sir Thomas Lipton, who opened a serles of retail provision shops in Glasgow. Commerce Department officials claim France adopted the idea even before that time. ‘There are now more than 10,000 chain store systems, counting all concerns with two or more units, with more than 100,000 retail outlets in the United States. In 1923 it was estimated that chain store volume of all kinds made up 6 per cent of the total trade of the country; in 1926, 8 per cent; in 1927, 12 per cent, and at the end of the last year, 18 per cent WEEKLY BROKER LOAN TOTAL GAINS SLIGHTLY Special Dispatch to The Star. NEW YORK, May 30.—Loans on stocks and bonds to brokers and dealers by reporting Federal Reserve Member Banks in New York City for the week ended May 28 totaled $4,022,000,000, & gain of $7.000,000. The total compares with $4,015,000,000 for the week ended May 21 and $5,288,000,000 on May 29, 1929. Demand loans constituted $3,380,- 000,000 of the total, against $3,391,00 000 a week ago, while time loans $642,000,000 compared with $624,000,~ 000 in the preceding week. Loans for member banks’ own ac- count were $1.777,000,000 on May 28, against $1,655,000,000 on May 21; for ks, 8,000, , against 000, for the account of others $1,257,000,000, against $1,290,~ Federal Reserve Banks of this dis- trict were borrowing $15,000,000 for the week ended May 28, against nothing for the preceding week. Clemency Refused Condemned Man. RENO, Nev, May 30 (».—R. H. White, sentenced to be executed in the lethal gas chamber at the State prison in Carson City next Monday, yesterday was del clemency by the State board of pardons. Czechoslovakia imported twice as many radio receiving sets last year as in 1928 and American manufactured sets showed a large gain, COASTAL TRADE REPORT, MADE BY DEPARTMENT By the Associated Press. ‘The relative importance of several coastal districts in our foreign trade is revealed in a study of ocean routes pre- pared by the Department of Commerce. ‘The North Atlantic district, compris- ing the Atlantic Coast from the Cana- dian border to Hampton Roads, Va., in 1928 accounted for 28 per cent of the total foreign trade and 29 per cent of the value of that trade. Imports into this district constituted 30.2 per cent of the tonnage of all our trade and 34.8 per cent of its value. The gulf district ranked next, followed by the Pacific and South Atlantic districts, in the order named. On a tonnage basis, the ocean route of greatest importance was that between the North Atlantic district and the area made up of Central America, Northern South America and the West Indies, accounting for 12.4 per cent. In second place was the route between the North in| Atlantic district and the Havre-Ham- burg area, with 11 per cent. The next three routes in order of importance were the Pacific district—Eastern Asia with 7.6 per cent, North Atlantic district and United Kingdom, with 7.3 per cent, and If district and North Atlantic and altic Europe and Havre-Hamburg range, with 6.4 per cent. American ships in 1928, the study dis- closes, cal 315 per cent of the United States ocean-borne foreign trade on a tonnage basis, tanker cargoes not be included. The participation was divided rather evenly between imports and exports, the percentage of the former being 31.6 and the latter 31.3 per cent. By the Associated Press. NEW YORK, May 30.—Reviewing the trend of the copper market the past week, Metal and Mineral Markets re- ports that domestic sales were on a greatly reduced scale, but that export business was in sizeable volume. The dullness in domestic copper, the review states, is accepted as a natural sequence to mk.: record activity of the past few weel Hallgarten & Co. and Kissell, Kinni- cutt & Co. announce that the entire $2,200,000 City of Santiago, Chile, 7 per cent bond issue, which they offered yesterday, has been sold. The Otis Steel Co. plans improve- ments and some expansion of the ca- pacity at the Lakeside works. ‘The Illinois Central Railroad reports that since electrification of its Chicago suburban lines in 1926 passenger busi- ness has more than quadrupled. In contrast with an annual decrease of 818,611 ngers during the last two years of steam operation, gains the pnz“hvo years have been 4,013,111 an- nually, Capt. R. D. Gatewood, manager the United States Salvage Associatio and R. R. , vice president of the Grace line, are new members of the American Bureau of Shipping. Stockholders of the Lake Copper Co., owning properties in Michigan, will vote June 17 on the question of liquidating the company, Vice President F. War Painte announces. No actual work has been done at the mine since 1929. CAB COMPANY OBTAINS CONCESSION INJUNCTION Restrains General Motors Form At- tempt to Break Taxi Agreement. By the Associated Press. NEW YORK, May 30.—The Yellow Taxicab Corporation yesterday obtained a temporary injunction restraining the | General Motors Corporation and three | subsidiaries from attempting to_ break a taxi concession received by the Yellow taxis from the Furness-Bermuda Steamship line. It charged General Motors with using its position as one of the coun- try's largest shippers to intimidate rail- roads and steamship companies into giving it taxicab concessions, of m, STOCK AND BOND AVERAGES By the Associ Fiom Yestcrd Press. 5:30 Edition. STOCKS. 50 Industrials. 189.8 1 SWEDISH FINANCE 15 ON SOLID BASIS Kreuger, Match King, Tells Gotham Capitalists About Stockholm Conditions. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, May 30.—Ivar Kreuger, the tall, blue-eyed, quiet-spoken, youth- ful-looking Swedish match king, told a distinguished group yesterday at the Bond Club of New York some startling “Swedish” facts. Before him sat some of America's greatest business leaders. These wure .Charles E. Mitchell of the National City Bank, Gerard Swope of General Ciec- tric, Charles 8. McCain of the Chase National Bank, George Whitney of the House of Morgan, his brother, Richard Whitney, president of the New York Stock Exchange; Percy A. Rockefeller, Clarence Dillon of Dilion, Read & Co ; Sidney J. Weinberg of Goldman, Sachs & Co; Elisha Walker of the Trans- america Corporation, James Speyer and James G. Blaine. Three of Mr. stand out: 1. The Stockholm Stock Exchange does not deal in the securities of a sin- gle company whose business is less than :O years old. No undigested securlties ere. 2. Of the 54 different companies whose stocks are quoted there every one paid dividends for 1929. No industrial Swed- ish bond issue offered to the public in the last 40 years has ever been a de- fault. 3. Swedish industry is international. Out of 20 companies in the world, the most strongly intrenched in foreign flelds, 5 or 6 are Swedish. Kreuger's statements “Business may be down throughout the world. but Swedish industry has not noticed it yet. Our business activi- ties for 1930 are fully up to the ressxd of last year. And we have not changed our tariff walls since the war,” were his concluding remarks. Plenty to think about here. ‘Two problems remain before the Ger- man reparations loans of $300,000,000 will be announced. The it deals with the method of amortizing the loan. It seems the creditor nations favor drawings every year at par, while Germany wants the bonds purchased in the open market from the sinking fund below par whenever available, thus permitting more rapid payment at a lower cost. ‘The second problem is whether the entire issue of $300,000,000 should be guaranteed by unconditional annuity payments, ‘The creditor nations con- tend that $100,000,000 of the total issue should not be so guaranteed, while the Germans insist that the entire loan must be included. But this much has been decided— the bonds will bear 52 per cent cou- pons and be sold at around 91 by the most powerful banking syndicate ever formed in the United States, with the exception of the loan organized by J. P. Morgan & Co. to handle the $500,000,000 Anglo-French 5z loan in 1915. ‘The report that the issue will be offered on Wednesday, June 4, is pre- mature. The following week is proba- bly a safer guess. ‘When John D. Ryan and his asso- ciates of the Aanaconda Copper Co. bought the Chile Copper Co. there were some stockholders who_gquestioned the wisdom of the move. But that day is long since past. The investments of the Anaconda Copper Co. in Chile have ex- traordinarily demonstrated the foresight and wi of the company’s manage- ment, for the Chile Copper Co. has proved a veritable gold mine for Ana- conda. ‘The report of the Chile Copper Co. for 1929, just published, shows that this great company produced copper for 4.744 cents per pound and made an oflen“nr profit of 13.431 cents on every und of copper sold. And it sold 212,-; 00,000 pounds, at an average of 18.175 cents per pound. Adolph Zukor, president of Para- mount-Publix, who returned yesterday from Europe, sees much hope in & sat- isfactory settlement of German and American picture interests, especially in_the matter of patent rights. Until this problem is settled Ameri- can picture producers cannot hope for much business in Germany and Swit- zerland. But with it out of the way, Germany will offer a big field. “The Paramount Co. is moving ahead with extensive expansion plans just now which call for the production of for- elgn language pictures on a large scale throughout Europe,” sald Mr. Zukor. “This year we hope to fiim 40 pictures in eight different foreign tongues, and ;e will materially step-up these figures 1931.” ‘The motion picture industry is one of the very few that has come through 1930 so far with flying colors. (Copyright, 1930, by North American News- paper Alliance.) MELLON INTERESTS BUY PARAGON OIL Ohio Company Is Acquired by Pittsburgh Bank in $10,- 000,000 Merger Deal. By the Associated Pres: CINCINNATI, Ohio, May 30.—A $10,- 000,000 oil merger deal was campleted here Wednesday, E. W.Edwards, president of the Paragon Oll Co., announcing his company had been sold to the Mellon interests at Pittsburgh for that amount. Directors of the Paragon Co. accepted an offer made by the Unlon Trust Co., Pittsburgh, Edwards sald. All that re- mains to finish the transfer is 'fl’“’“l of stockholders, and Edwards sald that will be accomplished on June 24. Financial circles here understood that the Pittsburgh bank acted for the Gulf Oll Corporation, which s controlled by Mellon interests. The Paragon Co. operated 300 ofl stations in Ohio and 100 tn Michigan. Edwards sald preferred stockholders will receive $50 a share and class B stockholders will get about $16 or $17 a share after the company is liquidated. BOY DECLINES FREEDOM OFFERED HIM BY COURT Refuses to Give Up Friends After Father Offers to Make Check Good. By the Associated Press. CHICAGO, May 30.—Nineteen-year- old Anthony Bizzaro was given a chance for freedom by Judge Francis Allegetti in Boys’ Court yesterday and declined. Arraigned for stealing and cashing a check, the was told he might go free if his father would make good on the check and if Anthony would give the gang of young hoodlums with ekl 0 Sy Canada 0. K.’s Salmon Treaty. OTTAWA, Ontario, May 30 (@— The bill ratifying the treaty concluded between and the United States and extension of for the the eye Salmon Pisheries in the Commons Washington Produce Butter—One-pound prints, 374a38; tub, 36a37. Eggs—Hennery, 21a22; ceipts, 20. Poultry, alive—Spring broilers, large, 38a40; small, 52a33; Leghorns, 28a30; fowls, 23a2¢ Leghorn fowls, 24a25; ducks, 15a18; geese, 15; capons, large, 35a37; small, 30a33. Dressed—Spring chickens, large, 45a48; small, 40a42; fowls, 27228; capons, large, 40a42; small, 30a33. Meats, fresh killed—Beef, 20a23; veal, 20a22; lambs, 23a28; pork loins, 26a28; fresh ham, 24a25; fresh shoulders, 22 smoked hams, 27; smoked shoulders, 22; bacon, 227; lard, in packages, 13; in bulk, 12. Live stock — Calves, 8all; Spring California, 7.50a lamb, 10a1l. Fruits — Oranges, 9.25; pineapples, 3.75a lemons, 7.00 .00; canta- 4.5 2.00; a7.50; watermelons, Joupes, standards, ats, huckleberries, 8.00; blackberries, 7.50; peaches, 3.00 per bushel. Vegetables — Peas, 5-peck baskets, 2.00; string beans, 1.50a2.00; spinach, 75; kale, 50a75; cabbage, homegrown, 75 per basket; cucumbers, 1.00a3.00; beets, 4a4!5 per bunch; beets, 1.00 per dozen bunches; cut-off beets, 1.25 a basket; corn, 3.00 a hamper. current re- GOODMAN THEATER DIRECTOR RESIGNS Thomas Wood Stevens Disagrees on Question of “Art or Profit.” By the Associated Press. CHICAGO, May 30.—Thomas Wood Stevens has resigned as director of the Goodman Memorial Theater, a po- sition he has held since it was founded, five years ago. “Hopeless disagree- ment” with the theater committee over the question of “art or profit” was given as the reason, ‘Twenty members of the Goodman Co,, including the two directors, Whit- ford Kane and D. Iden Payne, signed & statement indorsing Stevens’ stand. Stevens said the Goodman Theater should stand as a true art theater, de- voting itself to important plays that otherwise would not be seen in Chi- cago. Members of the theater com- mittee with whom Stevens disagreed were understood to favor production of plays with wide appeal and with increased box office possibilities, MACHINE-TOOL TRADE CONTINUES SLUGGISH Special Dispatch to The Star. NEW YORK, May 30.—Marked slack- ness continues to be the chief charac- teristic of machinery and machine-tool markets throughout the country, Amer- ican Machinist reports. Inquiries are slow and indicate little tendency of immediate orders. Although Canadian and New England markets during the past week showed some signs of life, remaining tool centers were dull and featureless. Used-tool demand is fair. New York reports a single railroad inquiry and several seattered sales. Chicago machinery sales during the week were few, with only one list. Good foreign demand and a sustained volume of inquiries mark the week’s business in New England. With a re- sumption of industrial activity which presages a larger volume of sales. Ca- nadian machine-tool dealers report a promising outlook. Southern district sales are chiefly confined to the territory around Hous- ton, Tex., and the general trend there is considered upward. Indianapolis con- ditions are poor at present, although small tools are moving in good volume. Cincinnati’s machinery market is still dull, although manufacturers there are still busy with back orders. With gen- eral activity declining and few prospects indicating an early revival, Detroit dealers are pessimistic. Buffalo mar- kets are spotty and dull, with inquiries the same. Washington Ticker BY CHAS. P. SHAEFFER, Associated Press Financial Writer. ‘The standing committee of the indus- tries that have held trade practice conferences under the auspices of the Federal Trade Commission has em- barked on a comprehensive investigation of the possibilities of more effective co- operation between Government and in- dustry through the trade practice conference procedure. The ‘committee was appointed at a recent meeting of the United States Chamber of Com- merce here. ‘Thomas J. McFadden of the paint and varnish industry has been named secretary of the standing committee and charged with the duty of gathering and compiling the experience and views of | 5 the industries affected. It is expected that another meeting will be held co- incident with the convention of the American Trade Association at Niagara Falls in September. The resolutions adopted at the Wash- ington meeting, directed at some tend- encles in the Federal Trade Commission, already have borne fruit. In this con- nection the commission has announced a new policy, under which no changes will be made in trade practice confer- ence rules without first affording the industry & chance to be heard and to withdraw the rule if it so desires. This changes a much criticized practice un- der which rules were in effect rewritten by the commission and then published as the rules of the industry, regardless of the wishes of the industry or the practicability of the changes. ‘The reason for this activity on the part of the more than 100 industries that have held trade practice confer- ences is thus explained by Abram F. Myers, chairman of the, standing com- mittee: “Many industries have expended much time and energy in an effort to con- duct their affairs along lines approved by the Federal Trade Commission. They do not propose that the fair trade practices thus established shall bs dis- rupted and their business thrown into confusion often because of the criticism of irresponsible and uninformed sources. “They further wish to emphasize the view, too often overlooked, that fair and legal co-operation between inde- pendent business units tends to pre- serve competition—not eliminate it. Un« der present conditions the alternative to such co-operation is merger, and, while mergers under some - stances are highly desirable, the social and economic dangers from excessive consolidation activities are very great. “These industries want also to dis- abuse the public mind of the idea, studiously promoted in some quarters, that the trade practices, Their posi- tion is that, since the rules received by the commission are not unlawful, the industries operating under them should be credited with good intentions until the contrary affirmatively appears. They are already on record with a condemnation of any illegal use ol“né'tna practice conference rules,” ‘BATTLE’ TRACED TO BREW Detective Probing Report Finds Bottles in Garage. MIAMI, Fla, May 30.—City Detec- tive John McLendon made two trips to & Miami home yesterday to investigate telephone reports by a woman that a gun battle was in progress there. Other neighbors had heard no shots, they said. McLennon sniffed about the garage. In addition he saw bottles scattered i J o . man . ut STATES NOW SEEK ADDITIONAL FUNDS Some Commonwealths En- deavor to Obtain Sources of U. S. Taxes. BY J. C. ROYLE. Some of the States are seeking to induce the Federal Government to re- lease a part of the sources of revenue now held by it, according to reports from tax commissioners in various parts of the country. State officials complain that their expenditures to run the State governments have grown tre- mendously, and that many States have found it impossible to meet fhese ex- penses from their old sources of revenue. Figures compiled by the Industrial Conference Board show that the ex- penses of all the State governments in- creased from $383,000,000 in 1913 to $1.211,000,000 in 1929, the latter figure being measured in dollars of the same purchasing value as in 1913. Chief Source of Revenue. ‘The main source of revenue for the States has always been the general prop- erty tax, but State officials are now seeking other sources. The income tax has been_virtually appropriated by the Federal Government, tax commissioners say, but in spite of that fact 19 States now have an income tax and one other, Washington, imposes such a tax on earnings of financial institutions. Reports received here indicate other States, including Kansas and Iowa, will give serious consideration to the passage of an income tax law when their legis- latures meet next January. In Illinois the Legislature in special session is now considering a constitution which, if passed and adopted by the voters in November, will permit an income tax. “The national income of $89,000,000 is certainly as good a tax base as the national wealth,” said Mark Graves, State tax commissioner of New York. “Why, then, should the Federal Govern- ment, with one-third of the aggregate governmental expenditures to meet, vir- tually appropriate that source of reve- nue, in addition to customs duties, of which it has a _monopoly, to the ex- clusion of the States, which have to finance two-thirds of the cost of govern- ment in this country?” Missouri Viewpoint. ‘The Missouri Survey Commission in & recent statement says: “The enact- ment of a law permitting the Federal Government to pass back or allow a de- duction to each State of a portion of the Federal income tax collected from the citizens of that State, just as has becn done with the Federal estate tax, would gmvlde each State with funds with which it could render to all sec- tions those services for which taxes are collected locally.” State Tax Commissioner Norman of Georgia, in a recent statement, said: “The Federal income tax drains the State almost dry. It extracts all the cream.” Forty-five of the State Legislatures will meet early next year. This prob- lem of readjustment of the tax burden undoubtedly will come up before many of them. The States which have income taxes and those which are searching for still other sources of revenue undoubt- edly would be glad to get back a por- tlon of the Federal tax, but it is still too early to tell ‘whether the movement will gain sufficlent headway to be con- sidered definitely by Congress. (Copyright, 1930.) . VIRGINIA RAILWAY CO. EARNS $3.11 IN APRIL ‘The Virginian Railway Co, reports for four months ended April 30, 1930, net income of $1,533,181, after taxes and charges, equivalent, after dividend requirements on 6 per cent. preferred stock, to $3.11 a share on 312,715 shares of common stock. This compares with 81,677,725, of $3.58 a share, in first four months of 1929. The statement for April and four months compares as follows: April gross ..... Net operating’ income. Total ~income. ... 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BANKERS STUDY PROFITS OF RESERVE SYSTEM The chief argument against proposals to make membership in the Federal Reserve system more popular by giving member banks larger shares in the earnings of the reserve banks than the 6 per cent dividends, to which they are now restricted, “seems to be that there is considerable danger lurking in any proposition that tends to turn the Federal Reserve Banks into institutions conducted in any sense with the idea of profit in view,” the Economic Policy Commission of the American Bankers’ Association declares in & report just made public. “The fundamental value of the Federal Reserve Banks to the Nation is based on their freedom to conduct their operations with no other -motive than to serve as reserve strength in the banking structure and to employ their resources with the single-minded aim of helping to maintain such an adjust- ment of the volume of credit to the volume of business that all constructive needs for credit shall be met and no expansion beyond those needs shall be facilitated,” the report says. “In that conception there is no place for purely investment operations. The provisions of the Federal Reserve act dealing with the earnings are so framed as to make the public welfare the whole consideration determining Reserve Bank policy. The provisions for specifically limiting member banks to the fair re- turn of 6 per cent, for creating ample surplus funds and for absorbing all amounts above these allocations in pay- ments to the Government were designed for the very purpose of removing the profit-making motive from Federal Reserve policy.” R T Plan Joint Operation. NEW YORK, May 30 (#).—Creole Petroleum Corporation, Standard Ofl of New Jersey subsidiary, and the Mexican Seaboard Oll Co. are reported consider- ing a plan for joint operation of certain of their ofl-producing properties in Venezuela. ?dnli:b‘ in Real tate Investments JAMES Y, PENNEBAKER Nat. 5291 1520 K St. N.W. 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