Evening Star Newspaper, June 12, 1930, Page 12

A—12 REPARATIONS LOAN ANNOUNCED TODAY $98,250,000 of $300,000,- 000 German Bond Issue to Be Sold in U. S. By the Associated Press. NEW YORK, Jun: 12.-—Announce- ment was made last night that the American_portion of the long-awaited $300,000,000 German loan, amounting to $98.250.000, will be offered today by ndicate headed by J. P. Morgan o. The American portion of th® loan, known officially as the German gov- ernment international 51, per cent loan of 1930, will be offered at 90 and accrued inter The bonds run for 35 years and priced to yield | .20 per cent Other portions of the loan are being offered either tomorrow or Friday in France, Great Britain, Holland, Sweden, Switzerland, Germany, Italy and Bel- gium. The loan is tife diréct and un- conditional oblgation of the German government and ppearance is heralded by bar final step | in the settiement of the German repa- | rations question grov out of the World Wa The issuance is an integral part of the Young plan and is the final step in the acoption of the plan, transfer- | Ting the rep estion from the political to the con field. Two- thirds of the total issue goes toward the commercial of annuity pay- ments in settlement of the reparations debt of Ge: v to creditor powers, and will be placed to their credit in the Bank of International Settlements. he remair $100.000.000 the cs will be used Ger ment for the require- ments of rman Railway Co. and the German post office and telgraphs. To Buy With Sinking Fund. A cumulative sinking fund, computed to be sufficient to retire the entire issue at or before maturity, is to be applied to the purchase of the bonds at or be- low 100 and accrued interest, or other- ‘wise, to the redemption at the price of bonds drawn by lot. The bonds are Tedeemable at 100 and accrued interest upon not less than 45 days previous notice, on June 1 of any year, through the sinking fund, and on June 1, 1935, and yearly thercafter. in amounts of not less than $7.500,000, principal amount at the option of the Govern- ment. Coupon bonds are in denomina- tions of $1.000, $500 and $100. The principal and interest is payable in gold | at the office of J. P. Morgan & Co. without deduction for any German taxes, present or future. Bankers point out that the sole con- nection of the Bank of International Settlements, acting as trustee, is as the! agency through which payment will be | effected in accordance with the terms| of the Young plan, but that connection | in no way qualifies or limits the direct | unconditional obligation of Germany t bondhalders. | No further issues for the mobilization of the German annuity payments may | be made on any market without the consent of the international bank for the purpose of internal conversion of | the national debt of a creditor nation. | Any offering in the United States, even | with the consent of the international | bank, bankers say, must have the ap- proval of the Federal Reserve Bank of | New York. } No More American Issues. | While no definite statement has been | made, leading American bankers do not | believe there will be any further Amer- | ican issues and that offerings made with the approval of the International Bank will be marketed within the countries to whose governments the annuities flow. Widespread interest has been shown by financial interests in New York and throughout the country in the German bond issue, appearance of which has been expected for some time. It was explained today that the delay was largely due to discussion of phraseol- ogy in translating the terms of the loan into French, German and English. Bond houses report sales on a when~ fssued basis during the past 10 days, with some prices a full point above the offering price, The American issue is the only one for North America, it was learned, and whether any bonds are sold to Canadian houses or individual in- vestors will depend upon the decision of the offering syndicate. With this ex- ception, the syndicates handling the offering in each country are expected to sell nationally onl OPEN CREDIT SALES ‘ SHOW SMALL LOSSES| The average loss from bad debts on open credit sales of more than 10,000 retail establishments employing such terms was .6 of 1 per cent, Department of Commerce learned in connection with its retail credit survey. | ‘The second volume of this survey, | dealing with automobiles and atces- sories, radio, bakery products, groceries, | Jjewelry, electrical appliances and opti- cal goods, was issued Wednesday. | Although the average loss to ail retall | establishments included within _this study was only .6 of 1 per cent, there were considerable variations among different trades and among different | establishments within the same- trade, | the department pointed out. £ raised by | by the NEW INVESTMENT ’I;RUST. | NEW YORK, June 12 (#)—Brook-| mire Investors, Inc., a new management type of investment trust with a capital of approximately $50,000,000, has been | organized. The new company is spon- sored by the Brookmire Economic Serv- ice and has a capitalization of 1,000,000 no par common shares, which will be offered to the public at about $54 a #hare, DIVIDENDS DECLARED | | NEW YORK, June 12 (&), t Regular. Pe- Pay- e.riod. abl Hidrs. of recorg, ine 23 Company. Alemco _ Asio Lawyers it & G Mexicar, Eavle o MDo )'p! Newberry J J % Bo*'e,! B i &L Cor Burmah Corp Chi Ind & Lou Ry $1 Am Invest Co Pennroad Corp Twin Sts rench Line Burmah Corp..4 ar Omitted. t B 37 Q £d50c Q Due July 1 0 B.25¢ Q DueJuly 1. 25c Ex Due July 1. Deferred. 50c @ Due July 1 General Pa Nachmar-Spr Pender (D) De ... Due July 1. General Paint A ‘anadian currenc: L. A. ACIDOPHILUS is of maximum strength That's what gives it its superior efficacy in healthizing the intes- tinal tract and ridding it of the infections which hreed indi tion. constipation, flatule: eolitis, arthritis, ete. The L. A. brand is a laboratory cultur, nd will be delivered by Tesscnzer " fo any local ‘address. Nat. Vaccine & Antitoxin Inst. 1515 ¥ou St. North 0089 ¥, THE . EVENIN ISTOCK MARKET HELD STRONGER FROM TECHNICAL STANDPOINT Importént Banking In terests Do Not Share Pessimism Shown Recently by Pro-~ fessional Trading Element. BY CHARLES F. SPEARE. 1 Special Dispatch to The Star. | NEW YORK, June 12.—In its pres- ent cynical mood Wall Street is in- clined to gi%e ear to every bit of gossip that floats through the financial di trict and to listen to those who profs sionally attempt to make capital out of the misfortunes of the stock market. | Effort is being made by these interests, through rumor and suggestion and by | | comparison with conditions last Autumn, to unsettle prices. Against this is the calm judgment of bankers and industrial leaders, who, while admitting that the improvement in business is slow d might not get under good headway until the end of this year, were emphatic in their state- |, menis that, both from a techincal | standpoint_and in the light of its in-| vestment status, the stock market now is stronger than it has been at any time within the last nine months, and that investors who own their securities and those who have them amply ma gined need have no occasion for alarm. Public Account Small. The most influential factor in the present market uation is the absence from it of the public. This includes the condition of relatively small loans on securities by the banks compared with the huge totals last October Bnd‘ November. The advance in prices in March and April was primari work of the professional trader, The testimony of the majority Stock Exchange houses is that | public did not follow this movement | to any extent. So it was not crippled when prices broke in May. It has not | been great affected by the sccondary decline that has cccurred since and | which has been most violently mani- fested in this month's reaction. While margin calls sent out Saturday after- noon and Monday night were numerous in comparison with those in previous months, they were relatively small and did not occasion a great deal of dis- tressed selling. The money situation now existing | and the position of brokers' loans rep- | resents as positive a change from a highly unfavorable set of credit con- | ditions to one of extreme ease as could CORPORATE TRUST SHARES Practically every individual in this country comes in daily contact with at least half of these companies or their products. These shares are, therefore, an investment in the very backbone of American business. Common stocks of these 28 com- panies are deposited under Corpor- ate Trust Shares. New York Central Tifinois Central Union Pacific Southern Pacific Louisville & Nashville Pennsylvania Achison Stand. Oil (New Jersey) Stand. Oil of New York Stand. Oil of Ind. Stand. Oil of Cal. Texas Corporation American Tel. & Tel. Western Union Con. Gas of New York General Electric Westinghouse Elec. United States Steel American Tobacco International Harvester Otis Elevator Ingersoll-Rand du Pont United Fruit American Radiator Woolworth Eastman Kodak National Biscuit PRICE AT MARKET ABOUT $9%4 PER SHARE Circular on request GRranAM. Parsons & Co. 48 WALL ST. NEW YORK 1422 WALNUT # PHILADELPHI 300 SOUTHERN BUILDING WASHINGTON * mosvon CRANTON WASHINGTON mEADING PITTSBURGH BALTIMORE Guaranteeing Satisfaction 1886-1930 44 Years of Constant Progress STOCKETTALK NO. 15 This is our Story and we're going to Stick to it! to maintain high degree of perfection in our sales service, we do not overlook our Telephone Order Department. This department is charge of a trained Station- er, competent to and fill vour orders intelligently—able to advise you on problems of Office Equipment — thoroughly posted on the latest Efficien Devices for the modern office. Use this service. Phone * »nal 9176—Order Department. Your order will be filled ac- curately and delivered promptly. STOCKETT- FISKE CO PRODUCING STATIONERS DIDE ST - -RN-W WASHINGTON'D'C We Want Your Business! In planning a now in | that by have occurred within a six or seven | months' period. With comparatively few and i spite of the record 140 new low p; or the year for stocks on Monda; most of the eight or nine hundred active trading units on the Stock Exchange are selling above the bottom figures for 1930. Those Teason of poor earnings and reduced dividends have dropped into lower ground are the coppers, which have fallen even lower than last year; several of the rails, including members of the Northwestern group, along with Southern Rail nd Erie, and such formerly buoyant issues as Montgemery Ward and Simmons. Utilities Stocks. American & Foreign Power, against which the professional attack has been most. severc rocently, was about points highe: than last Autumn. Amer- ican Power Light was up 39 points from that level. American Water- works was quoted at almost double the figure reached on November 1 United Corporation sold as low year as 19, after touching 75'2 in May. Today is was approximately 100 per cent _above its former low price. Con- solidated Gas broke to about 80 last November, a perpendicular decline of over 100 points, and is now 40 points above this figure. And so on through the list of prominent power and light securitie exceptions, of nearly NEW B. & 0. CARS. Ju 12 (Special) new individual scat some time ago by the Baltimore & O] Railroad, ‘are now being received and instalied in regular train service, according to officials of the company. When the entire order of 50 cars is received, the road will have 89 cars of this type in operation. This style of coach was introduced by the Baltimore & Ohio in April, 1926, The company plans to extend the fea- ture from time to time and make use of the individual seat coach general on trains throughout its territory. Some of the coaches, order S E— their h VEEDOL G .STAR, WASHINGTON, D. C., -THURSDAY, TRAVELING BY BUS - BECOMES POPULAR Passenger Lists of Various Companies Show Big Gain in Year. | BY JOHN F. SINCLAIR. | Special Dispatch to The Star. | NEW YORK, June 12—“It is a racket—this bus business. Lok at the | back of them, made to look like an ob- | servation car.’ T tell you it is a racket,” | says one of New York's “show-me"” men, | in discussing the transcontinental bus line activity these days. But it must be a “healthy” racket to be able to carry 3,000.000,000 passengers annually in the United States or 24 times the population. These are the figures given out by the Department of | | Commerce. | | “Wait on any paved-road corner to- | day, and one is apt to find a bus com- ing ‘along, at the rate of 25 or 35 miles | |an hour, filled with interstate pas- | sengers Passenger busses vy hour for nia. Cities and zes in botween are comb:d and | honey-combed with *“feeder” lines So the highway improvements have brought in_their wave not only the driving of 27,000,000 automobiles, but they have also brought the most effec- tive and_efficient bus transportation | systems that exist in the world today These various systems are now in the merger stage. | “In another | day-and-night bus line service, with all | the accommodations of a Pullman train, will be available at prices so reasonable | that few can afford to ignore them. Two New York bank cxecutives, George W. Davison, president of the Central Hanover Bank & Trust Co., and Albert H. Wiggin of Chase National Bank, bave joined hands to oppose the extension of bank branches in the | United States. | ""Mr. Davison bases his main argument | | uponthe fact that bank consolidations | did_not necessarily reduce the danger of bank failures, for “the history of chain banks thus far has been that when one goes they all go.” Mr. Wiggin takes much the | point of view. Within city | | leave New York fiye years, an effective same limits, | tion creditor nation branch banking is efficient and work- | able, he declares, but when it is ex- | tended beyond city lines new dangers begin. | Both agree that branch banking with- | in the city, renders as effective service to the community, without sacrificing the advantages which flow from unit| banking. | Neither, however, attempted to answer the argument advanced by the advocates of group banking, Who believe their plan gives prompt and - satisfactory | banking services to small as well as| large communities, while maintaining bank unit independence. What should the American people do? Ever since the w they have been charged with many things and_told what to do and what not to do. It's a hard nut to crack. They have been called upon to: 1. Cancel war debts and save the world. 2. Quit playing the shylock and help | the rest of the world recover its busi- ness prosperity. 3. Join hands with the World Court and the League of Nations and thereby help to foster world peace. 4. Loan more money to the starving industries of Europe. =/ 5. Cut down tariff walls, so that the | rest of the world can do business on Amerfcan soil. 6. Ship more gold, so that the res the world can “hold together.” 7. Give the world a chance of 7 to sell goods on a fair basis in the greatest trade market of the world and thercby keep millions of people from starving. Some of these suggestions are good some are not. What should be the policy of American business? Should | tariff walls come down so that Canada | and France, for instance, might be able to_sell more goods in the United States? Walter Lippman, New York - editor, recently made this statement “We'are today living in an era which | might be very well known as a period of | American hesitation. We stand deeply | bewildered on the threshold of an im- mense destiny, and until our conscious- | ness of what we are and what we mean | to the world comes up with a reality | we shall continue to deal with the prob- lems of the present day with a mind 30 years out of date. This confusion in the United States results very largely upon a misconcep- of the position of a debtor and in the modern world. The United States is now a creditor nation, the greatest creditor nation But many Americans still try to keep | in vogue the international practices | used by the United States when she was a weak, struggling, poor debtor nation. (Copyright, 1930. by North American News- paper Alliance.) Swallowing a pin caused the death of | a reindeer at the London Zoo recently. LADY DRUMMOND HAY THE ONLY THE-WORLD womaN TRIP or ASSENGER THE ON THE mouwD. GRAP ZEPPELIN | state Commerce ‘Commission_ denies pe- | tition for abandonn 2 3 JUNE 12, 1930. NEW YORK. June 12.—The following | is today's summary of important cor- poration news prepared by Standard Statistics Co., Inc, New York, for the Associated Press: News Trend. Outstanding in the day's corporation | news is the announcement of the for- mation of the Continental Construction Co., which will construct the $100.000.- 000 Texas-Chicago natural gas pipe line, under sponsorship of Citles Service, Insull interests, Standard Oil of New J and four other large oil and gas companies. Initial daily_delivery ca- pacity of line will be about 300,000 000 cubic feet, and more than 50 com- | munities will be served. Unfavorable dividend announcements were made by | Evans Auto Loading and David Pefder Grocery, both passing dividends due July 1. An initial payment of 20 cents | was declared by Pennroad Co | Department store sales in May by 551 | stores in leading cities made a better | showing for the month than in pre- ceding periods of the year. Accor<ing | to preliminary to the Federal Reserve system, M sales decreased about 1 per cent from last year, while for the five months’ period decline was about 3 per cent. Districts of the sys- tem in which May returns were larger |than a vear agn included New York,| Boston, Minneapolis and Richmond. The Companies. American Ice May profits estimated at 10 per cent ahove vear ago. American Utilities & General has ac- | quired 251,743 class B stock and voting trust certificates of Consolidated Gas Utilities through exchange. Aviation Corporation ~carried 6,935 pascengers in May, 2.8 per cent over April. Revenue: expanded about 4 per cent, due to Increase in length average ide. . Colorado & Southern Railway—Inter- nt of 185-mile line d Leadville, Colo., op- e 1900, Southern Corpo- | =" output off 54 per down 2.2 per cent: 12 months, up 3.9 per cent over previo year. May gas output increased 2.4 per cent, five months declined 2.2 per cent, 12.months off 8.7 per cent. Continental Construction, organized to construct the $100,000,000 Texas-Chi- cago natural gas pipe line, sponsored by Cities Service, Insull _interests, Standard Ol of New Jersey, Texas Cor- poration. Skelly Oil, Phillips Petroleum and Columbian Carbon. Gos will be between Denver a erated at. loss Commonw ration May el cent, five months, was worth a dollar a drop to the Graf Zeppelin’ STOP FOR GAS WHERE YOU SEE THIS PUMP Ask for E \! Motor Oils Greases STOP FOR OIL WHERE YOU SEE THIS SIGN L AVAGE squalls song of the Graf LADY DRUMMOND HAY could not still the serene Zeppelin motors . . . as they hummed their way around the world. That was a victory for VEEDOL. Pitiless cold gave no pause to eager pistons TIDEWATER OIL SALES CORPORATION Main Office, 1225 K 'St. N.W. Met. 0158 MADE _BY_THE MAKERS OF TYDOL ETHYL AND ES Met. 0159 distributed by Peoples Gas Light & Coke. Cor off 0.7 per cent, five montbs, cent above year ago Delaware, Lackawanna & Western R. R. earned 55 cents on common stock in March quarter, agairfist $1.38 in 1929 period Evans Auto Loading passes quarterly sclidated Retail Stores May sales 124 per | dividend 62! cents, due July 1. | MacMarr Stores operated 1,407 stores and 463 markets in May, against 1.335 and 252, respectively, year ago. John Morrell & Co. earned $2.27 on common stock in six months to May 3, against $4.80 in six months to March 30, 1929. North American Aviation acquires Berliner-Joyce Aircraft of Baltimore. Novadel-Agene president reports four months’ net 7 per cent above year ago. David Pender Grocery omits dividend of class B stock. Last distributions 25 cents regular and 25 cents extra Pennroad Corperation declared initial | dividend of 20 cents on common stock. Peoples Gas Light & Cok> propose gas rate schedule on basis-of heat units e A | rather than volume of gas consumed. | Change proposed as gas. supply will be | augmented by naturzl gas from Texas | which has greater heating power. | " Plerce-Arrow Car May deliveries to | consumers largest of any month this year. Republic Steel subsidiary, Bourne | Puller. shuts down open hearth division bocause of low current rate of opera- tions. | " United Aircraft & Transport <sub- sidiary_ carried 163.076 pounds mail over Chicago-San Francisco route in April, against 156,505 in March. United Stores carned $1.18 on com- mon stock in 1929, against 54 cents in 1928, Western Ajr Express carried 72328 pounds mail over Salt Lake-Los Angeles line in April, against 71,208 in March. Youngstown Shcet & Tube to con- struct plant for production of electri- | cally welded pipe; cost about $2,000,000. With the exception of one cottage the entire village of Fenwick, England was sold at auction recently. 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VEEDOL has proved that it gives a quality of performance that no other motor oil can excel, Now, the thriftiest motorist can give ‘hi motor the thrill of a genuine 100% paraffine base motor oil . . . and thrill his purse with sub- stantial money savings in upkeep and repairs. Plant, Rosslyn, Va. HI-TEST (amrEEN) ‘ West 3045 TYDOL aAsouing)