Evening Star Newspaper, June 22, 1930, Page 63

L) . ‘ . . News of Markets Pages 1 to § BE FINANCIAL AND CLASSIFIED he Sunday — St Clissitiedt & Pages 5 to 12 Part 6—12 Pages WASHINGTON, D. €., SUNDAY MORNING JUNE 22 1930. D. . STOCKISSUES ARE FAIRLY STEADY INRECENT SELLING Local Market Little Affected by Losses in Wall Street Slump. CAPITAL TRACTION FIRST “ IN VOLUME OF SALES W. R. & E. Preferred and Potomac Electric Have Also Been Very Active. BY EDWARD C. STONE. Prices of both stocks and bonds on ! the Washington Stock Exchange have | worked lower during the first half of 1930, now so nearly ended Local issues. however, have held up very well in the face of crumbling val- | ues on the New York Stock Exchange and many other exchanges all over the country. The declines here have not been nearly as severe as in many other ¢ cities. The volume of trading has also held up well during the past six months— not as well as a year ago during the same period, but. on the whole, mem- bers of the Stock Exchange express general satisfaction with the result. When quotations are dropping in New York, there is always more or less gelling on the local exchange by in- vestors who are obliged to protect com- mitments elsewhere. In the recent se- vere setbacks in New York, however, mmbers- of the local exchange report that there has been but little liquida- tion here because of impaired New York accounts Capital Traction Most Active, Among the high-priced stocks on the Jocal exchange Capital Traction has | been the most active issue during the past six months. There has been a turnover of 4,183 shares so far this| year. On account ef the forced reduc- tion in the dividend, this stock has also sold off more than the others. The stock opened 1930 at 75, advanced to 92'; and closed Friday at 60%3, ex- dividend. Next traction in the utility list, Washington Railway & Electric pre- ferred, has seen the largest volume of trading, with a turnover of 1537 shares. This stock is higher than it was the first of the vear. It opened | 1930 at 94, went to 99': and closed the other day at 98%;. Another particularly lively issue in the first half year has been Potomac “ Electric Power 5! per cent preferred, 1455 shares having changed hands. The stock opened at 105, went to 108% and is now 107Y%. During the m year 567 shares of the corpora- s stock have changed hands, open- ing 1936 at 111 and now being 110. The highest priced utility on the ex- change is Washington Railway & Elec- tric common. It opened the vear at 500 and is now 560. That holders are loath to part with it is shown by the | fact that only 11 shares have been sold in the six months. One more local stock that always holds public interest is Washington Gas Light. The turnever in this issue has been rather slow. It opened 1930 at 9612, climbed to 130 and the last sale was made at 120, D. C. Bank Stocks Also Lower. Washington bank stocks are lower, although they have resisted the down- ward move far better than many of the leaders in New York. As a group they have done well. Among the national banks. the larg- est turnover has been in Commercial National, which started the year at 255 and is now 230, sales totaling 454 shares. Riggs National has been active for sich a high-priced issue, recording sales of 174 shares. The stock opened the year at 530, advanved to 533, drop- ped to 400 and is now selling at 470 Next in total sales comes Federal- American. The trust company group has been Jess active, American Security & Trust leading with sales of 195 shares. The stock opened the year at 436 and is now 415. Next in activity comes Con- tinental Trust. This stock has been 4 selling at 125 for some time. The highest priced savings bank | stock on the list is Security Savings & Commercial. now selling at 482, six points higher than when the vear started. The highest priced bank stock | on the board is National Savings & Trust, which opened 1930 at 520 and | last changed hands at 561 JOHN D. HOWARD, Just elected head of the Seventh Street Savings Bank, succeeds August H. Plugge, who was made chairman of the board.” Mr. Howard has been vice pres- ident and cashier, is 46 years old, and has made a fine record in the banking profession. —Underwood & Underwood Photo, [ &P NETINCOME IMPROVES INMAY Report Shows Falling Off in| Total Profits in First Five Months in 1930. ‘Telephone operating revenues for the | month of May were $748,672, with op- erating expenses of $548,820, the report of operations of the Chesapeake & Po- tomac Telephone Co. to the Public Utilities Commission of the District of Columbia shows. Net revenues after deducting taxes and uncollectible bills were $147,468. For the five months ending May 31 the company's operating revenues amounted to $3,615,744. Operating ex- penses for this period were $2,656,060, making net revenues after deducting taxes and uncollectable bills $706,981. In 1929 operating revenues for the first | five months of the year were $3,512.954, with expenses of $2,511,749, making net revenues after deducting taxes and un- collectible bills $742,069. Taxes for| May amounted to $49,123, which was an increase of $3,171 over the same month last year. Gross retirements during the five months ending May 31 were $2,031.145, exceeding the gross additions by $181,- 189. Net additions to plant for the 12 months ending May 31 amounted to $2,478,706. On_May 31 Washington was served by 162,125 telephones, an increase of 3,212 since January 1. Telephone users | in Washington made 18495250 calls during the month. May Earnings Compared. comparisons between May, | 1930 and May, 1929, show a gain of | about $50,000 in net income. The fig- | ures. May May 1930. 1920. reve- Telephone operating nue: $748,672 §711,732 ox- Telephone penses .. Net telephone revenues Taxes and uncolleciable operating Total operating income. .$147. Non-operating revenues .... 1, Totai gross income Rents ‘nod ‘miscelinneous Tnterest deductions Net income ... 35 Earnings for Five Months, Operating income for the four months in 1930 amounted to $3,615,744, against $3,512,954 in 1930, Operating expenses so far this year | have totaled $2,656.060, against $2,511 749 in the corresponding period a year 0. uA(ter all deductions the total net in- come for the five months amounted to $541,883 in comparison with the higher $607,980 in the same period in 1929. FOX FILM LOOKING FOR RECORD SEASON i Special Dispatch to The Star | NEW YORK. June 21.—Fox Fim| Corporation estimates that total sales | of the company during the coming season will run between $45.000,000 and $50,000,000, a new high record for the organization. Of this total, the Mergenthaler Among Leaders. In the miscellaneous list, Mergen thaler Linotype has been the most ac- tive, this popular issue recording a turnover of 3,373 shares. The stock | opened the year at 106, went to 109 and is now selling ex-dividend at 973 Lanston Monotype started the year | at 113, climbed to 129, and the last sale was made at 118!, the turnover reaching 1.007 shares. Peoples Drug Stores preferred, another stock selling over 100, has been popular, 658 shares | changing ownership in the six months. | The last quotation was 106 Carpel Corporation, one of the newer | and lower priced issues on the board has recorded sales of 2,893 shares, the last sale being made at 20’:. National| Mortgage & Investment preferred and Real Estate Mortgage & Guaranty H ferred have figured in very hea turnovers. A review of the local bond market | shows most bond issues off from the | high for the year, but the declines are very modest. The most active bonds on the Washington Exchange have been Capital Traction first 55, Washington Gas bonds, series A, and Washington | Gas Light, series B, and Washmglnnl Railway & Electric consolidated 4s Potomac Electric Power consolidated 5s are higher now than when the year opened. The 6s are only off 4 of a point. Some Suggestions From Boston. “However one may reason to the cause of the present general busihess decline,” says the United States Busi- ness Service, “the fact remains that we are all confronted by a condition, not a theory. We must face the pros- | tral Hanover. 326, off 5. Chatham Phe- foreign sales department, which is represented in virtually every country in the world, will contribute very sub- , the company s the 17 - week April 26, 1930, net earnings amounted | 10 $5.722.000 as compared with $3,904,- 000 he same period of 1929, or an increase of 46 per cent. The company points out that this increase was made after liberal write-offs of approximately $7.000,000 on neeative and positive fitms for the year 1930. NEW YORK BANK STOCKS NEW YORK, June 21 (Special) — Weak from start, today’s bank stock and trust share market wound up with many issues at new lows for the year Trading was small, and most offerings came from professionals. First National Bank, at 4,600, was down 200; Chase National, 125, off 9: National City. 138, off 9; Corn Ex- change. 169, off 6. and rights, 15%. off 13,: Guaranty, 602, off 33; Bankers, 12315, off 7: Bank of United States, 43 off 1 Brooklyn Trust. 687, off 3; Cen. nix, 100. off 6: Chemical, Commercial, 410, off 15; Manhattan, 102, off 6; Manufacturers, 93, off 6; | New York Trust, 221, off 10: Public, 98, off 5: Bank of America, 96, off 7; Chel- E 37, off 61, off 1; | to adjust our business here and now s0 that it will show profits under pres- {ent conditions. Second to this, is the duty of retaining as much as possible the capacity for future expansion when DECLINE NSRS DECLARED SETBCK T0 TRADEREVNAL Heavy Selling and Sharp Bear Raids During Week Depress List Further. MANY SHARES DRIVEN BELOW LEVEL OF PANIC Commodities Also Lose Ground, but Recovery Is Believed at Hand. BY CHARLES F. SPEARE, Special Dispatch to The Star. NEW YORK, June 21.—Stocks, bonds, commodities and money rates have all gone down together this week, each be- ing influenced by the action of the other in a liquidation of securities and commodities that is worldwide and ag- gravates and prolongs the business de- pression. Stocks have lost between 75 and 80 per cent of the average recovery that took place between November 13 last year and the first of May. On Wednes- day more than a score of prominent shares went well under the prices to which they had dropped last Autumn. By various market measurements the stock average at that time was about 20 points above its 1929 low, although, as the number of separate issues in a compilation of this sort increases, it is significant that the averages of last November and this week come closer to- gether. This reflects the large mass of low-priced shares in the official list, whose present market values are an in- terpretation of the severity of the busi- ness depression on various kinds of pro- ducing and distribution organizations. Of about 900 separate stocks dealt in one day this week, over 400 were quoted at $30 or less. In fact, three-quarters of the number carried prices that would not average $20 a share. The average of all the common stocks listed on the New York Exchange at the end of May was about $60 a share. Course of Secondary Reaction. A serious question now is whether stocks have reached a level where sus- pended liquidation and investment-8uy- ing will support them or whether, under the influence of the pessimistic mood of business, there will be further selling and an approach to, or a decline be- yond, the limits at which the banking pool gave its aid last November. There is very little precedent to support the theory that a secondary reaction, such as ix now being witnessed, goes through the average reached in a major decline in security prices. If an approach to this Jow average occurs, it has usually been within a comparatively short time of the event and not seven months later, as is now the case. In dealing with commodities there is stronger basis for expectation of an early recovery than may be held con- cerning common stocks. The com- parisons in the commodity situation are not with so recent a period as 1929. They go back in the grain market to the pre-war period, in other instances beyond the memory of the present gen- eration and. in a large group of com- modities, they represent the lowest average in 10 yaars. All, of course, indicate overproduc- tion, whose effect will be corrected in time. It is recognized that they are at a level where it is good judgment for manufacturers to use surplus funds in accumulating them against the period when there will be a revival in business. Undoubtedly, the violent renewed de- cline in agricultural products and in| copper this week has served to intensify | trade pessimism. This has been col- ored, too, by the passage of the tariff bill It seems to be the opinion, however, that there is less probability of a bus! ness index, which had flattened out at | the end of March, making a subsequent dip below that period than that a de- lcline in stock market averages below the November level can be avoided. Lack of Buying Puzzling. There is either less buying power to- day to apply in resisting the downward trend of stocks, or less will to buy. Those who are in a position to know have been puzzled recently by the com- paratively small balance of their daily purchases. This week it has been possible to buy many of the stocks for which in- vestors were eagerly bidding in Novem- ber at prices under those ruling at that time. What does this suggest? It may mean that the public has not been able to save enough since November to buy stocks. It certainly has not been withdrawing its mcney from the savings banks or making loans on in- surance to any extent. Or, its nega- tive attitude may Tepresent an unwill- ingness to invest so long as there is no evidence of leadership in the bank- ing world similar to that which became a conspicuous and supporting factor during the panic. (Copyright, 1930.) NEW REAL ESTATE MART IS SUCCESSFUL First Report of Founders Shows Large Turnover in This Type of Securities. Special Dispatch to The Star. NEW YORK, June 21.—The belief of its founders that the operations of the New York Real Estate Securities Exchange would have a stabilizing in- fluence on the realty securities market and materially ald toward changing the general condition of these securities from “their somewhat frozen position to one of liquidity” has been borne out, Charles G. Edwards, president, points out in his initial report, reviewing the first six months of operation of the ex- change. “Through the medium of the fex- change many miliions of dollars of real the opportunity for it is again pre- sented.” pect that improvement may be delayed and will perbaps be very slow. In all A prize of $10,000 offered by the American Superpower Corporation in estate securities have been afforded a recognized market where they may be traded in, and in providing a market quarters of the globe the wheels of | connection with the Bonbright prize |for these issues the only objection to industry have slowed down, production | contest for an essay written in 1925, |a good realty bond as collateral has has declined, and with it, necessarily, | which forecast most accurately the |been removed,” Mr. Edwards declares. employment has diminished. DW&’T!‘P&! our conviction that both retafl prices and wages must be scaled trend of the electric light and power industry for the five years ended Jan- uary 1, 1930, has been awarded In his report the fact is stressed that the exchange in this, its period’ of in- fancy and development, is but follow- pos! down to conform to present realities. | humously to Reuben B. Sleight, who |Ing the early history of all recognized Selling methods and costs must be|at the time of his death in 1927 was |exchanges. overhauled. This is particularly im- . field that extravagant expenditures have been most evident during the recent years of business expansion. “Even though some measure of sea- #onal improvement may reasonably be expected in the Fall, we nevertheless hfi:nmv.mmtpnnqwulbe on the engineering staff of the United aide to the then secretary, Herbert Hoover. Announcement of the award was made at the convention of the National Electric Light Association in San Francisco. The prize money will g0 to Mr. Sleight's widow, Mrs. Doris Sleight of Ann Arbor, M‘ ‘The exchange has already assumed portant because it is in the selling | States Department of Commerce as an |national proportions through the list- ing of issues originating outside of New York. SILVER QUOTATIONS. NEW YORK, June 21 (#).—Bar sil- ver, 3% _ Will Greet Bankers MRS. J. ARTHUR HOUSE Wife of the president of the Guardian Trust Co. of Cleveland, has been made chairman of a committee of 45 women who will help entertain delegates to the fifty-sixth annual convention of the American Bankers’ Association, in Sep- tember. It is expected that many Washington bankers and their wives will attend the Cleveland sessions. WEEK SEES BETTER DEMAND IN BONDS Many Distracted Holders of Stocks Place Funds in Senior Securities. Special Dispatch to The Star. NEW YORK, June 21—Originally de- pressed by a large undigested budget of new offerings and attacked by forced selling incidental to the renewed slump in stocks, the bond market put on a poor performance in the first four sessions this week. The market did not receive any re- lief from the stream of new capital offerings, which totaled close to $150,000,000. This is $100,000,000 under the previous week, but that week in- cluded the $98,250,000 new German 5), per cent reparations issues, for which the world markets were pre- pared well in advance. However, the end of the week saw a strong upturn as the Federal Reserve rediscount Tate was cut to 215 per cent, the lowest rate in the bank's history, and bankers' acceptances were accord- ingly cheaper, as was time money, The action of stocks in retracing part of their large losses of the past fortnight helped along the bond market by ad- vancing convertibles and stock option bonds and removing from the market the heavy forced liquidation. Heavy Investment Demand. . When the clouds had cleared away after the storm of selling, it was found that the average of 50 representative bonds had dropped to 9150 from its March mark of 94.80. But this does not tell the whole story, as U. S. Gov- ernment bonds, prime railroad mort- gages, and high-grade public utilities held ‘well on a large investment de- mand consequent on the almost frantic search for financial shelter by dis- tracted former holders of stocks. It was in the industrials, which dropped from their high average of 87.12 to 81.17, and in the junior rail- road descriptions, which fell off from 90.71 to 82.26, that most of the havoc was wrought. Foreign dollar credits held fairly well. week they stood at 99.02, compared with their March level of 101.16. United States Government issues were supported not only by investment de- | mand, but by the success of the recent Government financing; which went to a fractional premium in counter trading, and by the indications that there would be a further lowering of money rates. The eight active long-term Government bonds averaged 104.562 at the end of the week, compared with their March high of 104.628. High-grade rafls averaged 9545, equal to the previous high mark of the year, and the public utilities stood at $9.60, compared with thelr best of 100.03. German Bonds The new German 5'is stood at 90 all week, securely “pegged” at that price by the offering syndicate, but in London the issue dropped to a 2-point discount at one time. This affected other German bonds, such as the Repar- ations 7s, German Central Bank 6s, Deutsche Bank 6s, Berlin 6155 and Co- logne 615s, but the losses were hardly comparable to those suffered in other parts of the list. Bolivian bonds were a sensitive target for the selling, owing to the complication of political troubles, and the 7s fell off to a new low at 70 and the 8s down close to 80, both 15 points below their recent levels. Other South American issues cracked under the strain were Antiquia 7s, off over 5 points, and Cundin Marca 6'.s and Brazilian and Colombian de- scriptions. European bonds were strong, however, with Paris still in the market to buy French bonds in almost any amount. Some interest was shown in the de- foulted issues of Mexico and the Na- tional Railways of Mexico with the an- nouncement that Luis Montes de Oca, Mexican secretary of finance, will at- tend conferences with the international bankers’ committee on Mexico in New York this month with the idea of re- suming interest payments on Mexico's debts. There are about $184,000,000 Nation- al Railways of Mexico bonds outstand- ing and approximately $130,000.000 of Mexican government bonds, on both of which the interest payments have been defaulted for some years. (Copyright, 1930.) GAiN IN NET SH(;WN. NEW YORK, June 21 (Special).— Railroad Shares Corporation reports net gain from interest, dividends and realized profits from July 3, 1929, to June 18, 1930, of $378,701, after de- duction for Federal taxes and expenses. Net gain for three months’ period from February 24, 1930, to June 2, 1930, after deducting March 15 dividend and taxes amounts to $131,282. GAS DIVIDEND VOTED. NEW YORK, June 21 (Special).— At a meeting of the board of directors of the Pacific Gas & Electric Co. held yesterday Edwin Gruhl and James B. Black of New York were elected diree- tors. egged.” POWER DIV;DEND. ‘The National Power & Light Co. has declared regular quarterly dividend of $1.50 on the $6 preferred, payable August 1 to nwcTolden of record July 15, At the end of the | that | FOREIGN CAPITALS | STUDY EFFECTS OF HIGHER U. 5. TARIFF Restriction of Exports Feared With Prejudice to Debt Payments. Is GERMAN REPARATIONS LOAN OVERSUBSCRIBED Successful Issue of Bonds Report- ed in Britain, France and Elsewhere. Special Dispatch to The Star. NEW YORK, June 21—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending June 21: Europe.—Reactions to the new United States tariff policy very definitely sup- planted in business interest this week the Young bonds and International Bank shares. No little bitterness is ex- | pressed in almost all centers, but it is improbable that there will be immedi- | ate tariff reprisals. United States prod- {ucts will encounter harsher customs treatment, and the more or less desul- tory attempts to encourage European | trade solidarity have been given a fresh !impetus by the common feeling of re- sentment. European capitals are pondering sev- eral questions in relation to the tariff. The first is the degree to which it will restrict European exports to the United States and the corresponding degree to which it will prejudice Europe's ability to meet the war debts. More vital to United States business is the question | whether or not Americans will be able to secure from foreign countries con- tinuation of most-favored-nation treat- | ment, the keystone of American foreign trade policy.” Finally, what will be the effect on American production costs and on American competitive export power. British Trade Declines. Great Britain.—General business dull- ness has been accentuated by Whitsun- tide holidays without even the normal increase in railroad traffic. The stock | market is inactive and suffering from reactions in New York. Monetary stringency prevails. A lower bank rate is no longer expected. Lists for the reparations loan were closed after four hours and were twice oversubscribed. Official figures show that foreign | trade in May suffered a heavy decline. Total value of imports declined 11.9 per cent from the same month in 1929, while exports decreased 24.3 per cent and re-exports 12.9 per cent. The only commodities showing improvement were coal and pottery. The London conference between gov- ernment and local authorities on un- employment is expected to lead to party co-operation in an attempt to find a | {major solution to the problem of seri- ously increasing unemployment. Prices Sag in France. Prance.—Except for record building, business is no longer so good. Prices | are sagging, profit margins flattening, | volumes _contracting. The _country seems finally to have succumbed to world depression. May price indices show lower wholesale and higher retail levels. Because it will affect chiefly French ! luxury industries, the United States | tariff was received with relative calm. It should be noted, however, that French business sentiment toward the United States has long been cumula- tively hostile and promises to become the chief point of friction in Europe. Germany Has Export Surplus. Germany.—The chaotic condition of federal finances continues to be the major factor in the German economic situation, and the cause of Finance Minister Moldenhauer's resignation. The majority of current business indicators paint a gloomy picture of business. Dis- missal of federal railroad personnel, un- satisfactory orders in the machine in- dustry and declining department store sales in both March and April are among the most unfavorable factors. The only bright spots are a small pick- up in car loadings, a seasonal decline in commercial failures and an export surplus for April of one-quarter billion marks, resulting from increased exports of manufactured goods and stabilized imports of raw materials at lower prices. Successful issue of Young bonds is expected to reopen the valve for the influx of foreign capital, notably Amer- ican, Fear is general, however, that relief s too late, for German recepti- bility of foreign credits is now impaired by the deepening business depression | and the upheaval in public finance. For example, the railroad share of 100 mil- lion dollars originally intended for pro- ductive investment is now forcibly des- tined to cover the deficit resulting from the declining traffic receipts during the current year. VEGETABLES FLOOD ALL LOCAL MARKETS| | String Beans, Squash, Cabbage and Tomatoes Arrive in Heavy Shipments. Glutting of the local market with string beans, squash and other vege- tables is said by dealers to have re- sulted from ripening of the vegetables in several States in the South about the same time. This condition was due, according to dealers, to the much- needed delayed rain visiting the sev eral States about the same time. It was recalled by a merchant this morning that a South Carolina grower, taking advantage of what was reported to be a strong market, drove his truck- load of string beans here, and he was surprised when he reached North Caro- lina to find pickers busy there. Some of the North Carolina product arrived here about the time of his arrival, and he was disappointed at finding a much lower market than he had anticipated. Tomato receipts, especially from Mis- sissippi, have been unusually heavy the past two weeks and prices have been much lower than usual. It is said by dealers that prices early in the sea- son were lower than they had ever known them before. Wholesale prices dropped 50 low this week that some re- tailers sold them at approximately 5 cents a pound. Cabbage, both shipped-in and nearby, is another’ vegetable that has been ex- ceptionally plentiful and cheap the | past two weeks. Growers, in some in- stances, reported selling them to deal- ers as low as 35 cents a byghel basket. Business News in Retrospect Reports That Natural Gas Will Be Piped From West Virginia Fields This Vieinity Are Revived Financial District. to n Call Money Is Cheap and Bivkere Ava Having Difs Aol mercial and Other Loans at Profitable Rates of In- terest. Placing Com- BY I A. FLEMING. There are some more or less positive reports in circulation in business sections of an intent on the part of the Washington Gas Light Co. to pipe natural gas from West Virginia for dis- tribution to large and small consumers. It is also said that service pipes will be connected with towns and citles ad- Jjacent to this city. One well known insurance man re- peated the rumor, giving as the source of information the owner of a large farm within 50 miles of this city, who had been approached to grant right of way across his farm for a pipe line for natural gas, and who consented on the promise of & “tap in." Natural gas fields have continuously maintained their flow since their dis- covery many years ago and specialists in that line assert that there are no signs of any decrease in the flow as the years go by. Natural gas gives greater heat than coal gas and can be distributed much cheaper. Situation in Money Market. Money is very easy. Bankers are getting whatever rates they can, facing a decided hard protfem, to pay 2 per cent on checking accounts, 3 per cent jon savings and 4 per cent on time money—as most of them do—meet operating expenses and dividends to shareholders. For the first time on record the dis- count rate of the Federal Reserve Bank of New York has been cut to 2% per cent. While recognizing the situation in the money market, it is be- lieved that the low rate was made with intent to aid in bringing a revival in general business. Call money has been plentiful on the stock market at 21, per cent. although banks and corporations outside of New York City sending funds for placement on call are forced to pay Y2 per cent to the fiscal institution making the loan. The easy condition of funds is largely due to the slackness in general business and industrial efforts and perhaps nearly as much to the fact that many persons are keeping their funds in bank waiting for the time when they may deem it wise to make investments, In this connection it might be wise to urge holders of securities not to pay much attention to an urge that may be made to induce them to shift-—for nothing but commissions. A. B. A. President Not Afraid. John G. Lonsdale, president of the American Bankers' Association, in an address before the New York State Bankers' Association, made this declar- ation: have no fear of the future for the long pull of business and com- merce. “America, as never before, is com- posed of :tudious, fact-finding individ- prevailinig j uals, who believe in basing actions on predetermined plans and not blind theories. If our national issues, such as the tariff, for instance, could be removed from political control and placed in the hands of impartial in- vestigators and advisers who have no campaign pledges to keep, we would eventually have a measure to which we might refer with pride. A sense of fairness should be dominant in the foreign as well as domestic tariff.” No Bank Legislation. The best information available is to the effect that there will be no bank iegislation during the few days of the present session of Congress and in all probability none at the second regular session of the present Congress. Interest has now shifted to the pro- posed hearings to be held on measures before the Senate committee on finance. The one dominant witness before the House committee, Henry M. Dawes, de- clared -that the unit banks could not survive the competition of chain or branch banking. Mr. Dawes was for- merly controller of the currency and bitterly opposed the theories of the pro- posed changes Chairman McFadden of the House committee on finance and banking in- troduced a bill that would, if passed, have effectually checked the trend to- ward group banking. It forbade any person or corporation from acquiring more than 10 per cent of the capital shares of any national or State bank, member of the Federal Reserve system, without the consent of the controller of the currency or of the Federal Re- serve Board. According to the author of the proposed measure, its aim was to give “publicity to the operations of certain persons who sought to organ- ize group banking systems without the financial backing needed for such operations.” It would not have offered inter- ference with the strong banking systems already in the fleld, as the controller would readily approve of their efforts at group banking. Strong banks would therefore welcome its passage. More- over, it would give their efforts the pat- ent ‘approval of the controller of the currency—the open approval of the | United States Government. Favor State Branches. It is said that Senator Glass, chair- man of the Senate committee on bank- Ing and gnance, is preparing a bill for State-wide branch banking, and the Senate is said to favor such a measure. It is also believed that there will be some action on group banking. A P. Giannini of the Bank of Italy, California, now & national institution, admitted ' that if unlimited branch nking was permitted, his bank ould immediately establish branches in all the leading commercial centers of the country.” ‘The Senate investigation of the Fed- eral Reserve Board, in the matter of control of credits, and action in market spasms, etc., will not be on until Fall, PUT ON DAIRY BOARD. Sidney J. Weinberg of Goldman, Sachs & Co. has been elected a direc- tor of Sheffleld Farms Co., Inc., a sub- sidiary of National Dairy Products Cor- poration. At the next meeting of the board of National Dairy Products Cor- poration. Mr. Weinberg is expected to be elected a director of that corpora- tion also. For the first time in history, the fes- tival service of a great daughter church of the Anglican Communion — the Church of the Province of South Africa—was recently held in West- minster Abbey, the preacher being the Most Rev. %}vmnm M. Carter, Arch- bishop of Gépe Town. Honored at Denver AUBREY 0. DOOLEY, Assistant trust officer of the Federal- American National Bank, who has been appointed national chairman of the publicity committee of the American Institute of Banking. He was also awarded a special prize at the annual convention for his success in publicity work during the past vear. Street Car Finfisl Are Planning War On Traffic Jams Utilities Men Declare Con- gestion in Business Centers Is Menace. BY J. C. ROYLE. The electric street railroads of the country are prepared to call for a show- down on the street traffic congestion situation. This was learned yesterday from executives of the companies, who are now making their way toward San Francisco, where the American Electric Railway Association will meet Monday. The situation affects every city and hamlet in the country, as well as the street car lines, which operate some 80 per cent of the urban public utility transportation. Downtown Parking. Downtown parking is the foremost problem. The street car men say the time has come when streets can no longer be used for motor car storage. They are advocating free movement for all vehicles. This question has threat- ened to stir up a controversy in Presi- dent Hoover's street and highway safety conference, but it has never been dis- cussed fo openly and frankly as it will be at San Francisco, Arrayed on one side are the city planners and public transportation men. They insist all streets should be used only for moving traffic. On the other side are the motor car men and many of the merchants. The first group asserts that the cost of new streets and widening of old thoroughfares should not be placed on taxpayers until existing streets are used to capacity for moving traffic. They | insist that the whole problem should be handled on a city planning basis and that the erection of skyscrapers, which figure largely in the production of con- gestion, should be taken into considera- tion. They cite highway accident rec- ords as an argument against haphazard traffic control. While auto accidents have Increased, street car facilities have dropped. Charges Disputed. ‘The electric railway and bus me argue that since they carry three pas- sengers to every one carried by private autos, and carry them more safely, they are entitled to clear headway in the streets, ‘The second group does not see eye to eye with the street car and bus men. Automobile men say they are doing everything possible to prevent accidents. They say that if parking space is not available at curbs, the cities should build downtown garages and provide free parking service. Street widening and the building of new streets are inevitable, they declare. Many merchants believe abolition of street parking would hurt their trade. They would rather see one car parked before a store than a dozen rolling past, despite assertions that Chicago mer- chants have found abolition of park- ing a help to trade. A Chicago survey parkers. (Copyrisht, 1930.) \BRIGHT HOPES BASED ON CURRENCY ISSUE New York Banker Declares Gold Reserves Give New Light on Trade Status. Special Dispatch to The Star. NEW YORK, June 21.—“The pro- nounced business upturn in May- measured by the large increase in cur- rency issue—will change the whole com- plexion of the stock and commodity markets by the middle of August,” ac- cording to James C. Willson, who has Just had completed a special study of the effect of currency issue and gold Teserves on prices in the major mar- kets. Mr. Willson says: “The pessimists, who became so numerous this last week, have completely overlooked the one most striking evidence that Ameri- can business has already hit bottom and started to turn up. During the month of May there was an increase of no less than $73,000,000 in our na- tional currency—a fact that can only reflect the demands of increased busi- | ness. “Moreover, this increase came after a practically steady decline of $453,- 000,000 in outstanding currency be- tween November 30 of last year and April 30 of this year. This long de- cline merely reflected the ebb tide in | business activity—just as the recent in- crease reflects the turn in the tide. “We get still more light on the true business situation if we compare cur- rency to gold reserves. On November 30 our total gold reserves were $4,366,- 000,000, or some $563,000,000 less than our total currency. The currency dol- lar was actually backed by only 881; cents in gold. Compare this to April 30, when, co-incident with the drop in currency, our gold reserves had in- creased $125,000,000, so that the cur- rency dollar was actually backed by 100 ‘l’;’l‘{"'m gold for the first time since ATLAS SALES HIGB:ER. Atlas Stores Gorporation in its first annual t since the, consolidation of Atlas Stores Corporatiof; City Radio Stores, Inc, and Davega, Ig. shows sales totaling $20,575,000 for year ended March 31, 1930, as compared with $15.600,000 for the vear s@nded June 1, 1929, an increase of $4,9%§,000. showed 1.06 per cent of trade came from | U, TARIFF PROVES LFADING POLITICAL FACTOR IN CANADA Campaign Centers on Possi- ble Effect of New Rates on Dominion. EXPANSION OF TRADE WITH BRITAIN IN URGED Twelve Agricultural Schedules Au- tomatically Raised as Hoover Signs Bill. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, June 21.—Canada's po- litical campaign, now iIn progress, cen- ters around the new American tariff and the problem of empire preference. When President Hoover signed the Hawley-Smoot tariff bill the Canadian’ government automatically increased 12 agricultural rates. Now, both Prime Minister King, the Liberal leader, and R. B. Bennett, the Conservative leader, have agreed that an expansion of trade with Great Britain and other British possessions is desirable. For the moment, the slogan Is “Create & more prosperous Canada by more intensive empire building,” but Jjust how this is to be accomplished is the problem that confronts both parties, Tbe Liberals stand for a policy of encouraging other British countries, particularly Great Britain, to purchase from Canada through a favorable tariff, The Conservatives, under the leader ship of Mr. Bennett, disappove of ganting preferences without getting substantial preferential agreements for Canadian products in return.: Their idea is more in the nature of a reci- procity treaty. But both parties are agreed that. Canadian business men must look in the direction of England and its affiliated | commonwealths, rather than to the United States, for future business ex- pansion. Money Rates, | _ The announcement that the Federal Reserve Bank of New York has cut its rediscount rate to the lowest figure in its entire history of 16 years does not tell the whole story. A casual reader gains the impression | that all money must be cheap and easy to get with such a rate ruling. But the reader must keep in mind, to un- derstand this ccndition, the vast dif- ference between liquid funds and capi- tal funds. The banks are full of liquid funds, and these are the ones which are subject to low rates. But capital funds are still hard to get. Mortgage money is difficult to obtain, because it is money loaned for a long period. Even bonds are not sell- ing rapidly. Why? Because the ‘owners of money, not knowing what the condi- tions are going to be in the future, are holding off from putting it into long-time investments. So_investment—or capital funds—are being neglected at the present time, i even although funds for liquid invest- ment are cheap and plentiful—a drug on the market. But to comprehend banking conditions today, this distine- tion between the two classes of funds must be understood. New Job Seekers, With commencement days over, thou- sands of recent college graduates are looking for work. Some favored few are on their way to a Summer in Europe, and elsewhere, but the vast ma- jority are trying to find the right place to it into. “Consider railroad work,” suggests M. J. Gormley, executive vice president of the American Railway Assoclation. ““The railroads want the college trained men. They are constantly looking for the best talent that can be obtained, but they do not judge a man by the num- ber of academic degrees he possesse: Still, the college graduate should have an advantage over the one who has not had a college training in ability to think clearly, to ascertain facts and to pass judgment on them.” Mr. Gormley, however, warns against the youthful graduate who wants to start at the top and considers it beneath his dignity to have to grind out any great length of service in apprentice work. “Any graduate willing to start in rafl- road work in the same position in which any one would be required to start and who approaches the field with a willing- ness to go through 15 years of hard work, will find that the rewards at the end of that period are as great in the service as in any other.” This is sober advice, enty of common sense. Building Industry, I asked Fenton B. Turck, jr., vice president of the American Radiator Co, and chairman of the executive commit- tee of the National Survey Conference, for his views regarding the present con- dition of building construction in the United States “Residential construction is the weak spot. In April it reached the low ebb of minus 51 per cent, as compared with April of last year,” said Mr. Turck. “May showed a 39 per cent drop under May of 1929. For the first five days of June residential contracts were 32 per cent under the like period of 1929.” “What has caused the construction decline?” he was asked. “Tight mortgage money was a major factor for the first three months, but this now is changing and funds are becoming more available each month, with loaning institutions showing in- creasing liberalness to good borrowers.” Not a bad report in these days— surely. (Copyright, 1930, by North American News- paper Alliance.) i mixed with Pl NEW YORK COTTON Market Leses—Must of ;eceut Rally on Bearish Reports. NEW YORK, June 21 (#).—Cotton lost a good part of its recent rallies during today's trading, owing to con- tinued good weather, disappointing Liv- erpool cables and declines in the grain and stock markets. ‘There was liquidation by earlier week buyers, with a renewal of local and scattered selling, which supplied a moderate demand from shorts and the trade and sent prices off to 13.51 for July and 12.85 for the new October, July closed at 13.60 and the new Oc- tober at 1297, with the general market closing steady at net declines of 26 to 34 points. . Cotton range: ) oo ons rezospoat Q s s esesg Baoanannay B33%32288 £ January, old \ ney 22 uly October. old Qctobey, new Decengber. old Decegper, new ', Sosooioooi sy BEERE: