Evening Star Newspaper, August 17, 1930, Page 61

‘ News of Markets | Pages 1 to 4 —_— D. C. GAS COMPAN 10 EXPEND $600.000 IN EXPANSION PLAN Lines Will Be Laid to Many Sections of Nearby Mary- land and Virginia. FIRST STEPS ARE TAKEN IN PROGRAM FOR YEAR Company Awaits Permission to Increase Territory—Hearing Next Thursday. The Washington Gas Light Co. has launched on a program of expansion into Marylangd and Virginia, which will imean the piping of gas to many com- munities for.the first time, and the ex- FINANCIAL AND CLASSIFIED . VICTOR B. DEYBER, President of the Second National Bank, who is on vacation in the Adirondack Mountains. Woman Members Named for Bank penditure of about $600,000 for new distribution. ‘This is part of a plan for expansion ©f the company, which comes in con- gunction with a move for a new sched- ule of rates expected to be filed within the next two weeks. President George A. G. Wood of the company plans to file the revised schedule of rates to make a more equitable distribution of the exception of those having extremely minimum gas bill per month. Most of the monthly bHills of consumers, with the exception of those havin gextremely low bills, are expected to be reduced. Principal Factors. ‘The program of the company, which %u recently reorganized with Mr. 'ood at the head, is understood to have two principal factors, first the de- velopment of larger sales within the g:qm territory, and, sécond, the add- of new territory in nearby Mary- land and Virginia. The " expansion program already is under way. Following recent authority a0 Bt | 000, the vice presidents ew mains are now being Falls Church, Va., to follow what is e Thes a0 Wil be' aid to es. Wi the Virginia communities of Bl.r:ro”r::, Belghi, Giebe Roka, Mackeys Hil wnd , Glel £ s ey's and Policy of Expansion, |, Last the gas company laid 15 miles of new mains. But during 1930 8o far already 30 miles of new mains have beéen laid, and it is expected the expansion program will include at least 100 more miles, before the end of the year. !xtamonw‘ s are being made on the ‘expect revenue, according to Vice Prsldmgn’t wmhnd, under.whnt the considers a_generous 5 mk\luflu if the net'm’\)flt !ro‘?-?xfi’e new exumlo'r.xm service can cover the on 1 tment ne to make the exuxle:n‘ then L‘l:“:;! pansion is authorizéd, in the hope of 'u':xm}eexpmdlnl market - there in the “We look upon the Washington situa- tion optimistically,” said Mr. Woodhead, who is in charge of engineering and p = sibility for further development. Hl:ocl.l taking an active part im the new ex- pansion program. By way of improving facllities for | the public, Vive President Fraser ex- plained that the company has re- modeled its main office and stores, which, beginning tomorrow, will :p;on for one week every night until New Store and Branch. A new store and branch office has been opened in Riggs Bank Building, 3310-3312 Fourteenth street, and an- other at 5632 Connecticut avenue in Chevy Chase, Mr. Fraser explained, and each of these will be open until 9 o'clock each night for the convenience of the public. In addition the main office will remain open a half hour Jonger daily, until 5:0 instead of 5 o'clock, Meanwhile legislation authorizing merger of the Washington and the Georgetown Gas Light companies, the latter owned by the former, is pending in the House, after having been favor- ably reported out by the House District Committee, Gas sales for the six months ending June 30 of the Washington Co. showed & deficit, but it was' believed to have been partially due to the excessive heat. Statistics show that Washing- burn more gas on a cool day than on a hot day. For instance, Sat- urday, August 9, this year, when the average temperature for the day was 91 degrees, Washingtonians burned 1,526,- 000 gas than they did on August 9, 1929, "When the records show the mean | temperature for the day was 78.5 de- | grees. Conversely, the record for Au- gust 12 this year and last points to the same trend: "It was cooler this August 12, with a mean temperature of 71.4 degrees for the day, and Washingtonians burned 927,000 cubic feet of gas more than they did for August 12 last year, when it was much warmer, with a mean tamoerature of 83.56 degrees. @as sales of the company for the six months fell off from 3,331,780,000 last year to 3,268,660,000 cubic feet this year for a loss of 63,120,000, or 189 per cent. Revenues for the same period creased from $2993603 last year to 82,934,144 this year, or $59,549, a drop of 1.99 per cent. Trends in Industry. Mixed trends characterized the gas industry during the first six months of the current year throughout the coun- try, according to the American Gas Association. Reports received by this association from companies representing 90 per cent of the manufactured gas industry indicate an increase of 2 per eent in manufactured gas sales and 1.4 per cent in revenue in the first half year, as compared with the correspond- ing period of 1929, while reports from d, stance Fogle, treasurer, Ri N H A explained. laid toward | 4; Institute Work Committee of Washington Chapter Will Plan Acti tives for Near Future. ‘The Women's Committee of the Washington Chapter, American In- stitute of Banking, has been appointed for the coming year, and several activi- ties of the chapter are getting under way for their Fall work. ‘The Women’s Committee consists of Mildred C. Woodcock, chairman, Amer- ican Security & Trust Co.; Rose Royce, vice chairman, Wi n Loan & Trust Co.; Helen in, secretary, National Savings & Trust Co.; 'O(m- ‘White, Federal-American ; Winifred Burwell, Na- & ‘Thelma Courtney, Commercial National Bank; Anne Orawford, McLachlen & Trust Co. The Committee on Education, headed by Aubrey O. Dooley, has about com- pleted plans of the school year. The curriculum comprises 12 subjects with 13 instructors. This will be the largest ever conducted by the chapter and this is an increase of three instructors. course in ing fundamentals will very likely be divided into two parts provided the enroliment is at least 100 as it has been for the past three years. The slterations to the chajfer rooms ‘now been completed and the week tember 15 has been set aside for ent, classes will begin on Mon- ay, September 22. The publication of the year book will probably be made on September 1, ac- ma:n( to Raymond D. Lewis, the T, ‘The Financial Committee, headed by James A. Soper, vice president of Lin- coln National Bank, will be comprised of 1. J. Roberts, assistant cashier, Riggs National Bank; T. Hunton Leith, assist- ant cashier, Security SBavings & Com- mercial; Frank M. Perley, president of the chapter. A resolution expressing sympathy has been made to Miss Rose L. and Miss Mabel Royce of the Washington Loan & Trust Co. on account of the death of their father, Herbert L. Royce. E. J. McQuade in California. Edward J. McQuade, vice president of the Liberty National Bank, and first vice president of the District Bankers’ Association, arrived at San Diego, Calif., on Friday, after an eventful voyage throught the Panama Canal, touching at Havana and Canal ports. Mitchell in Alaska. Lennard Mitchell, a director of the Liberty National Bank, is passing the August days up in Alaska. of en: ISTEEL PRODUCTION CONTINUES TO DROP Ingot Output Estimated at Not More Than 52 Per Cent for Week. Special Dispatch to The Star. PITTSBURGH, August 16.—The Iron Age estimates this week’s steel ingot production not at 52 per cent, but at “not above 52 per cent.” Presumably the estimate is on a basis that would make it comparable with the 56.35 per cent reported by the American Iron and Steel Institute as the average rate of production during July. If so, 52 per cent would represent nearly 8 per cen. and 51 per cent nearly 10 per cent decrease from the July rate. Usually there is an increase from July to August. Twoe of the last seven years, 1923 and 1929, were years of continual declines in activity and showed de- creases from July to August. The other years showed increases, even 1927, which had a poor second half in general, hav- ing a 1 per cent increase. Other estimates do not place ingot production so low, running rather at around 55 per cent, but there are no estimates whatever to suggest that there is any gain this month over July. Either there is to be no Autumn upturn in steel or it is going to come unusually late, and thereby it would not help the ;rcf;nd half total production a great leal. In contrast with activity in fabricated structural steel and line pipe, there is extreme dullness in various lines of iron and steel consumption. This is observsd even more in the foundry trade than in the stee] trade. The iron foundries of the country, taken as a whole, are running at much less than 50 per cent of capacity and the steel foundries are hardly doing much better. Some of the machinery and the mill equipment concerns are doing fairly well or very well, but they are not tonnage consumers relative to the value of their nroduct and the profit in it. The fob- bing foundries are doing very poorly. (Coyright. 1930 —eeeeee general business have retarded the rate of growth of the gas utility industry generally, the association says. But the relatively “depression proof” characteristic of the gas industry is indicated by operating results during the first six months of the present year. While manufactured gas sales showed companies Tepresenting 70 per cent of the natural gas utility industry show a decline of 4.8 per cent in natural gas sales and a drop of 4.2 per cent in rev- ! decr enue for the same period. Depressed conditions in industry and an increase of 2 per cent and natural gas showed a decrease of less than 5§ per cent, bituminous coal production ecreased 9 per cent, coke fon dropped 10 per cent and crude pe- troleum output 5 per cent. STOCKS UNSETTLE DURING PAST WEEK BY ROUGHTEFFE Business World Is Confused in Attempt to Estimate Result of Damage. PUBLIC PARTICIPATION IN MARKET STILL SMALL Drop in Retail Trade Reflects Growing Tendency to Economy. BY CHARLES F. SPEARE. Speclal Dispatch to The Star. NEW YORK, August 16.—Up to the first of August, when nine months had elapsed since the culmination of the 1929 stock market panic, the watchers in the ol ition towers of business had centered their attention on reports from industry, from merchandising, from transportation and from public utility operations, and as a composite index of all, on the commodity price average, in taking their reckoning of the future course of trade. From time to time the rise and fall in securities was accepted as a true barometer of conditions, but after the false forecast of last April, Wall Street judgment on the outlook had been at a discount. ‘Today the eyes of the country are turned from industry to agriculture. The problems of business and markets for stocks are linked more closely with those of the farmer, especially with the | growers of corn and cotton and the raiser of cattle, than in a quarter of a century. There is no little significance in the decline in Federal Land Bank bonds this past week, when other tax- exempt issues have been strong and the Government is borrowing on the easiest terms for short-time notes in its his- New Element to Appraise. WASHINGTON, D. (., SUNDAY MORNING, AUGUST 1 he Sunday Star 7, 1930, NORMENT RETURNS TO HIS DESK AFTER VACATION AT SEASIDE Bank Board Chairman Spent Summer Season at At- lantic City. Financier Has Long Been| Prominent in Business Life of Capital. Clarence F. Norment, chairman of the board of the National Bank of ‘Washington, has returned from Atlantic City, where he spent the Summer sea- son, and is being welcomed by his many friends and associates. He has long been one of the most prominent business men of the Capital. His father before him was president of the National Bank of Washington, one of the oldest fiscal institutions, and “C. F.” succeeded him, guiding the old bank safely through panics, wars and other troubles until a few years ago, | when he turned the reins over to George | L. Starkey, who had long been an able | officer of the bank. Mr. Norment is| still chairman of the board and one of the chief shareholders, He has long been identified with local business interests other than banking, being chairman of the board of di- rectors of the Norfolk & Washington CLARENCE F. NORMENT. Steamboat Co., of which his son, C. F., jr., is president, and for many years a director of the Washington Railway & Electric Co. and the Potomac Elec- tric Light & Power Co. C. F. Norment as a business man ranks with his close associates, Charles C. Glover, Edward J. Stellwagen, George W. White, John Joy Edson, the late C. J. Bell and others of that class. INVESTMENT BOND DEMAND CONTINUES Short-Term Issues Exempt From Taxation Command High Prices. Special Dispatch to The Star. NEW YORK, August 16.—When the investment market runs along—as it bas done for hte past week—at the same general level, under small volume Business was preparing itself for greater activity when the normal Summer dullness was to give way, under the release of postponed purchases, post-vacation factory activities and crop movements, to the full-speed-ahead program that comes in the Autumn of years that are in good balance indus- trially and agriculturally. Now there has been added to the troubles growing out of deflation in commodities and in stocks, and to the necessity for adjust- The | ing production of the mills, farms and mines to the requirements of the con- sumer here and abroad, a new handicap to immediate progress in the nature of a mpl disaster more serious than any smee 1901. Naturally trade and the stock market are confused b{nlhfl new and . pected element Injected into the situa- tion. So there is further diffidence on the part of buyers of merchandise and of securities and will be until the reck- oning of the new drought effects has been made and the net losses esti- mated. It is true there are always wn;gem-uuns arising from a disaster of this sort. It is fair to present them and to take courage from them. In- variably, however, they fall far short of the money loss, the loss of stamina and the depreciation of farm land and equipment that follow, Public’s Buying Attitude. ‘The extent to which the public is economy-minded is shown in the July reports of the chain stores which cater to a small price unit trade and by those specializing in meats and gro- ceries. The sales of these two branches of retail merchandising were off 7 per cent t5 over 13 per cent. Dealing with larger units and reflecting more closely the conditions in the farm regions are the major mail order houses, whose gross earnings last month were 5.7 per cent and 14.9 per cent under the equiv- alent period in 1929 and whose stocks this week have been affected accord- ingly. The iron and steel trade picks up slowly and not in the way its leaders have been predicting. There are ad- diticnal gains in employment this week in the automobile field, which help to offset losses elsewhere. Railroad car loadings still compare with the heavy volume of traffic moving last August and so are indicative of poor gross and net earnings for this month, with pre- liminary figures for July showing little improvement over those for June. Again we may emphasize the fact that railroad disbursements appear se- cure. Of about 500 dividends that have been reduced or passed in the last seven months, none of an important carrier has been affected. It may not be pos- | sible to make such a statement four months hence, for several must be re- vised if net revenues do nct improve. It is an indication of great financial strength and of careful and wise man- agement that, with the greatest ratio of net loss since last November of any department of American business, the carriers so far show the smallest pro- { portion of dividend change. Unsettlement in Stocks. ‘Taking all of thcse facts into con- sideration 1t is not strange that stocks have been unsettled this week, with a large number dropping to the lowest prices of the year. This includes mem- bers of nearly all of the important manufacturing and distributing groups and a few from the carriers. Little by little the advances that occurred in June have been whittled away. (Copyright, 1930.) EMPLOYERS OPPOSING REDUCTIONS IN WAGES Special Dispatch to The Btar. NEW YORK, August 16.—In spite of the fact that wage reductions by both direct and indirect methods have been fairly numerous during recent months, the “majority of industrial employers, while perhaps of the opiuion thai 81z general downward readjustment of labor rates is justified, are opposing such a movement because of the re- of trading in listed bonds, with high- grade issues at their best prices in years and with hardly any day-to-day fluctuation of market factors such as time money rates and foreign ex- changes, an analysis of the situation becomes a recital of oft reiterated facts. Nevertheless the present market pre- sents certain features of interest. For one tththe volume of new bond issues has declined and during the past week two major concerns effected large new financing by means of stock distribution. ‘While this probably reflects the hesi- tancy of even the strongest companies to add to their funded debt and fixed charges at a time when business is in a depressed condition, it has also served to reveal the enormous ameunt of money. that is in the market for short and long term investment. Short-Term Issues. Last Fall's stock decline was the start- inig signal for a steady increase of saving hat has piled up a backlog of idle cash larger than any in the previous history of this country or any other country. This has resulted in almost unprece- dented high prices for the "prized short-term bond which is exempt from State and Federal taxes. This week the City of Boston sold $3,00,000 of bonds at a cost of 2.10 per cent plus $3 premium, a record for this market. At the same time the Treasury disposed of $120,000,000 of three-month bills at a cost of 1.96 per cent or an annual dis- count basis, just slightly more costly to the Government than its previous bill offering. ‘These prices paid by investors for short-term employment for their money are a direct result of the falling off in new bond flotations. During the past week the total was only $30,767,000, against $70,940,000 the previous week and $34,322,000 in the same 1929 week. In other words ,there were not o many bonds offered all week as there were being put out every day in April and May, when new offerings caused a glut. In such circumstances savings banks with funds unemployed must turn to what they can get in the way of bonds legal for their portfolios. - The large amount sought both by them and by insurance companies have cleaned up the legal market and established scar- city values for a long list of municipals, | railroad equipment notes, prime rail- road mortgages, high-grade public util- | ity mortgages and collateral trust bonds. | Corporation Buying. In this market, which is chiefly con- ducted over the counter, there has been keen competition and constantly higher prices for weeks, with attendant activ- ty. And in the high-grade section of listed bonds there has been a similar condition. At the same time, there is much less demand for bonds yielding above 5 per cent, which are not legal for savings | banks or insurance companies, which | many individual investors will not have | in their safety deposit vaults just now. | and which have been largely bought by corporations with surplus funds. Even these have held their levels fairly well d in the case of the high yielding for- elgn credits there has becn foreign buy- ing to keep them higher. The result is that Standard Statistics’ index of 30 bonds based on the 1926 average adjusted to 100—has kept with- in 1-10 point of 100.7 all week. One of the significant phases of the current money market is that these is much more money available for real estate mortgages than was the case four or five months ago. It was con- | sidered a radical move a few weeks ago | when one of the larger concerns first| sroke the 515 per cent rate that had pre- | vailed for months and placed mortgages | at 5 per cent. But now most large | firms are providing funds at the 5 per cent rate and the tendency is definitely toward cheaper carrying charges in | real proprties. | Prefers No Parlfi;ent. BELGRADE, Jugoslavia (/) —Gen, vkovich, dictator of Jugoslavia, said that the 18 months which have elapsed since Parliament was dissolved have been successful, and he saw no reason tarding influence they believe it would exert on trade revival, according to the Standard Statistic Co. of New York. A portion of this corporation’s current survey follows: “ARhough other wage cuts prcbably will be made in the early future, g is at the present time questionable tnat a widespread slashing of rates will be witnessed. “Employment in manufacturing in- dustries, which currently is approxi- mately 13 per cent less than a' year ago, is expected to register gradual improvement between now and Win- ter. Resumption of more nearly normal cperations in the automobile, iron and steel and numerous other trades is likely to result in the re- engagement during the near term of many persons released earlier this year and in the extension of working time of most of those now employed. At the same time, harvesting and market- ing of leading crops should provide em- for an early change in the governmental system. St R P ployment for a large number who are currently without occupations. “Because of the substantially lower rate of employment and, in many cases, reduced wage scales, purchasing power of industrial labor obviously is mater- fally smaller than at this time in 1929. However, the decline prcbably is not as severe as it appears at first glance because of receding commodity prices, which permits those employed (espe- clally those with fixed salaries) to ob- tain greater dollar value with their funds than a year ago. With unem- plyoment likely to diminish during the next several months, general purchases, at least of necessities, should nd, although it is strongly improbable that they will reach their high levels of 1929 for a ooluldervle period.” Business News in Retrospect Brokers Are Now Advising Their Clients to Consider Switching Less Promising Investments Into Chan- nels Which- May Provide Better Returns Future. in Near BY I A. FLEMING. It would be interesting to know just what the investment trusts are doing these days. Many brokers ure advising holders of securities that the present is & good time to give consiaeration w their nvest- ments, with a view of switching some of the less prom- 1sing securities for others of more Ppromising prospects same market price as less worthy, All 1ndications point to the wis- dom of watchful waiting as the best policy for the in- vestor — the born speculator cannot wait. ‘Washington investors are carrying considerable amounts of Irving Trust Co. shares acquired during the spectacu- lar movement in New York bank and trust company stocks during the period when the Wall Street market was at its best. It was expected at the time that the Irving, one of the strong, well- thought-of institutions, would be a Juicy morsel for one of the other larger institutions or that it might do some swallowing itself, and the shares conse- quently advanced sharply. Indeed, they did make good ces, but few re- alized before the price hit the toboggan and in the deluge dropped back from the 90s to $50 a share, This year the shares advanced to $70 again, and again turned the other way to below $50, the latest quotation being 49% bid and 513 asked. Bankers familiar with the situation express the belief that it will be the part of wisdom for those having the shares to hold on to them for ultimate liquidation without loss, if not actual realization of good profits. ‘Washington Securities. Investors who have confined their operations to the local security market have fared much better than those who traded elsewhere. Of course, this mar- ket has been narrow, limited at all times, even when at its greatest activity, nor would it have been possible to have disposed of any large lot of stock or bonds in troubleous times without hav- ing to make serious concessions. Traders here have lost heavily in one old favorite investment stock that for years sold many points above par—i. e.. Capital Traction, but the reason is plain — automobiles and cheap taxies offsetting increased fares. Columbia Graphophone gave those who were trading in it even worse treatment for the shares of this cor- poration without bonds slumped to the cipher stage and nothing was ever done about it. Aside from these two and perhaps two or three bank failures or practical suspensions although they may have been settled without loss to depositors, yet wiped out stock, constitute the seri- ous events in a 23 year's record on the local exchange. Some Plants Running. Some manufacturers have learned the lesson that all retailers know, the fact that there is a market for every- thing at a price. Retailers have demon- strated this fact again and again when they decide to clear their shelves of slow-moving goods, cutting prices to the point where profit is slim when it is necessary to get rid of the mer- chandise that room may be obtained for new_ stocks. L A. Fleming. Manufacturers who shut down their | great plants in times of depression have found it expensive, for a plant in operation does not deteriorate with any- thing like the same speed as one com- pletely shuts down: all charges but labor, etc, go on just the same, the cost of shutting down and preparing for rm&emng when the time comes are sufficient to warrant the operation of the plant on a reduced scale even without much profit, while it will be available for filling rush orders that will command full prices. Proceedings of Convention. Proceedings ot the twelfth annual convention of the District of Columbia Bankers' Assoclation have just been issued in cloth from the Roberts' Press. ‘This is the earliest that the annual record has been published, a little more than 60 days after the close of the sessions, Papers and discussions at the con- vention were declared to be of estimable value by veteran bankers in attendance on the convention. Resolutions on the deaths of C. J. Bell, Dr. Farrington, W. T. Galliher and S. W. Stone pay striking tribute to the memory of each of these bankers of other days. INEW PENSION LAWS FORECAT N NANY PARTSOF COUNTRY Retirements of Middle-Aged Workers Expected to In- crease Within Decade. FALSE PROFIT-MAKING SCHEMES HELD DOOMED Mergers Not Likely to Mean Pros- perity Unless Accompanied . by Economies. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, August 17.—Even be- fore the immigration restrictions were opposed in 1921, the birth rate in the United States was declining. A ten- dency to limit the number of children to make it possible for parents to main- tain “higher standards of spending,” or, as they are called, “standards of living,” was growing.' ‘The birth rate dropped in the last 10 years from something over 25 to just below 19 in 1929. The excess of births over deaths is steadily shrinking, though it still represents about one and one-third million persons. Figures published June 24 by the Census Bu- reau showed, for example, a decline in the number of births for 1929 of 3.6 per cent as compared with 1928. Science Prolongs Life. In the last four decades the ex- pectancy of human life—that is, the average number of years the infant at birth may be expected to survive—has risen from about 42 to 59. But ex- pectancy at 50 for life after 50 has not increased at all. Rather, it has shown a slight decline. The improve- ment in the first case is due to tre- mendous progress in the handling of epidemic diseases which formerly icted early adult years in the tre: ment of tuberculosis and in the matter of infant mortality (deaths under 1 year of age). Now the most superficial study must show that one cannot al- together abolish obstacles to human survival. Some authorities on public health believe we shall never get below an infant mortality rate of 45 per 1,000. In comparison with the total pofulnuon. further saving here cannot bulk very large in the future. On the other hand, look for & mo- ment at the minimum birth require- ments. That a population may survive (based on present living conditions and expectancy of life), and with due al- lowance made (1) for the various per- centa of sterility and other causes of childlessness, (2) for mortality (ins fant and up to the years of marriage) and (3) for the increase of celibacy, 330 children on the average will have to be born to every 100 mothers. Today, according to the best informed, 230 children to each 100 mothers represents | the outside figure for the reproduction rate of the United States. We are not arguing here whether it is a good or bad social policy to limit the number of children. We are study- ing the question from the standpoint of the economic effect the relation of birth rate to pricé levels, wage levels and similar factors in economic life, Immigration Reduced. ‘The United States has reduced its annual net absorption of adult Euro- peans to auobt one-fourth of what it was before the war, and during this time the productive capacity of the country as a whole must be conserva- tively estimated as having at least quadrupled what it was before the war. So the nature of the great disparity among consumption, prospects and pro- duction realities is driven home upon us with the force of a sledge hammer. ‘Then, too, the changing age com- position of our population cannot be ignored. hundred years ago the average of our entire population was around 16 or 18. Today it is about 24 or 25. Much more important is the fact that the average age of our people between 15 and 65 has risen steadily. These 50 years represent the period of productivity, during which the bulk of the world’s work is done. A century ago the average age of the population between 15 and 65 was in the very early twenties. This year's census doubtless will show that the average age is up in the late thirties. All these things profoundly affect our life, buying habits, taxable capacity, and law-abiding propensities. The number of people over 50 is steadily and rapidly increasing. Ten years ago something like 16 per cent of our population were over 50. The new census probably will show just over 20 per cent. By 1940 no less than 25 per cent of our population will be over 50. So that in the brief span between 1920 and 940 the proportion of our total population over 50 will have increased from one-sixth to one- fourth. Minority - Interest. This spells the creation of a very powerful minority interest—perhaps the largest minority intefest in the popula- tion—on the borderline of economic activity, and incidentally across the borderline of biological reproduction in the great majority of cases. Bear in mind the menacing fact that the tendencies of modern industry to throw out the people of 50 and even of a lower age as a means of avolding the cost of industrial pensions and other burdens derived from social legis- lation will make it almost impossible for us to avold a severe crisis before the end of this decade. We may as well make up our minds that the policy of retirement in mid- dle life, which industrial companies are seeing fit to apply, will result in Jegislation probably in half the States in the Union before this decade is over, requiring special provisions from com- panies for the employment of persons over a certain age, or the maintenaice of special funds from which such em- ployes will be supported. But whatever it is, the policy of the States and the Nation in carrying an increased number of dependents can- not but mean an increase in the social responsibilities of the Government. would be an impressive figure that the League of Nations statistical office might compile on just how many people | in all Europe, North and South Amer- ice are recelving, directly or indirectly, from their national or local govern ments either salaries, doles, allowance: or military pay —any form of sup- port in money or maintenance. Our own quota in that total would run into some millions. Payments in Germany. A German cabinet officer, Stegerwald, said a few months ago that fully 12,000,000 Germans were receiving payments of some sort, direct or in- direct, by public authority in Germany. And all this spells more taxes. 8o under our present system the pop- ulation il increase less rapidly every It | Classified Ads ¢ | REPARATIONS BOND FRANK W. LEE, Vice president of the Mount Vernmon Savings Bank, who is chairman of the Executive Committee of the Central Labor Union rasing $20,000 to complete financing of the District of Columbia World War Memorial. Canning Industry Hard Hit by Dry Spell in Maryland Effects of Drought Ex- pected to Be Shown This Winter. Special Dispatch to The Star. effects of Maryland's 49-day: which is reckoned to have destroyed millions of dollars worth of crops throughout the State, probably will not be felt until Winter comes, according to_officials of canneries here. Frank Shook, secretary of the Tri- State Packers’ Association, an organi- zation of Maryland, Delaware and New Jersey canners, predicted that the Maryland corn pack this year would be only 25 per cent of the normal; peas, about 20 per cent; string beans, 30 to 40 per cent, and tomatoes, 50 to 60 per cent—though some tomato growers expect a smaller pack. Maryland is one of the most impor- tant canning States of the country. Of about 500 canning - factories in the State, it was estimated today that not more than one in five were in opera- tion. The value of Maryland’s canned products in 1927, a fairly normal year in the vegetable packing industry, was $25,426,800. That year the State's ap- proximate pack of peas was 985000 cases; corn, 3,670,000 cases, and green peas, 1,157,~ | 000 cases. Using the 1027 figures of these four staple canned products as.indices, Mr. Shook’s crop forecast indicates . that the value of Maryland's canned prod- i ucts this season would drop to a figure somewhere between $8,000,000 and $9,- 000,000. Last year Maryland canneries packed 1,469,000 cases of peas, 1,865,311 cases of corn, 4,050,160 cases of tomatoes, 1,369,807 cases of green beans, 41,684 cases of beets; 54,816 cases of wax beans. of those for 1927, when the value of the year's canned products in this State exceeded $25,000,000. NEW YORK BANK STOCKS NEW YORK, August 16.—Bank stocks Chase National at 137 but Corn Exchange at Bank of America at 87 off 2, Baners, 137, off 2; Brooklyn Trust, 2; Central Hanover, 317, Chatham Phenix, 104, off 1; C 29, off 1; Chemical, 62, off 1}2; Con tinental, 25, off Y. Empire, 77 up 2; First National, 4,750, off 50; Irving, 49, off % : Manufacturers Trust, 80, off 14; New York Trust, 240, off 2. The fol- lowing were unchanged: National City, 125; Guaranty, 613; Chemical, 62; Com- mercial, 380; Manhattan, 105, and Public, 100. Thriving Saloon for Sale. HACKENSACK, N. J., August 16 (®). —In this case it didn't pay to advertise. Under “business opportunities” in the Bergen County Record appeared vgrtisement of a saloon for sale. ing $40,000 a year business; never any legal difficulties,” said the ad. But prosecutor West promises a close watch hereafter on the thriving place. ] year until the excess of deaths over births will absorb our slight gain of immigration (assuming, of course, there is no change in the immigration policy). From that point on, after a very few years, there must begin a period of de- clining population. And the decline will accelerate with each decade. Now to return Yo the economic con- sideration involved. ~What does it mean to have the population stop grow- ing? For about a century there was a general trend toward increase in profits, with the possible exception of agri- culture, which has in recent decades, anyway, had to compete in world markets with countries of lower pro- duction costs. There were times, of course, when this trend was arrested, indeed cut through by sharp though brief periods of loss. But in the main the 1ise in the profit rate was as- sured and cln’;e to be relied upon as a siriess_experience. buThe wnrp'dld nothing to diminish this. In fact, it is not too much to say thet it affected the whole theory of profits with what the psychiatrists call “delusions of grandeur.” It be- came possible to derive profits just from rapid and clever operations in the evi- dences of ownership. So for the last five years a malicious and most unreal type of profit making has developed from th: anipulation of securities, the ihro together of companies, the creation of chain organizations— and doing anything and everything to let people in on the ground floor, al- ways upon the assumption that past rates of increase in the consuming market would be maintained in the fu- ure. But while consolidation is the word of the hour, it is going to represent lit- tle or no economy unless and until wholesale reduction of overhead, man agement and personnel is in every case effected, and unless and until effective public regulation of security issues and intelligent principles of profit organiza- tions have been written in enforceable and adequate precepts of law. In a word, we are going to give up our confident assumption that the old rate of profits can be maintained. Un- economic duplications will have eliminated wherever possible, without too great sacrifice of individual inter- est, profligate waste of materials will have to be stopped, quality and dura- bility will have to be the watchwords. (Copyright, 1930, by North American New: paper Alliance.) 1,493,000 cases; tomatoes, | All these figures were far in advance | off | tinued to - | local paliatives arz n to be [ po, " ISSUE FAILS AS AID 10 FOREIGN TRADE Expected Stimulus in Finan- cial Circles Has Not Yet Materialized. UNEMPLOYMENT GAINS FEARED DURING WINTER Recovery in Commodity Prices Might Break Downward Swing in Business, Special Dispatch to The Star. NEW YORK, August 16.—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending August 16: Europe~-The financial activity w] was to_follow I?'u;u‘a pletely failed to develop. Business con- ditions since their issue have gone from bad to worse. Nothing in the current situation suggests early improvement, and it is improbablé that the usual Autumn activity following the harvests will bring more than superficial reljef. Anxiety is ing to be expressed Ilor the Winter. Unemployment, which ‘ung to unprecedented levels Jo © the Tease, which will ords. The British Electrical Manufacturers’ Association has git probable before 1932. On the other hand, any recovery in world raw material and agricultural prices at this juncture of affairs would act as an appreciable tonic, possibly breaking the vicious depression circle. 1f, however, the process of adjustment proves one of stabilization downward to present low primary values, the o withou trends. Business continues featureless. Agricultural Conference, The European prese is dublous that the Jugo-Rumanian treaty will be~ come effective September 1, since it 18 genetally held t it violates out- standing most-favored-nation The uneesiness of Hungary following the announcement of the treaty revives the consideration of an Austro-Hun- garis;1 union with possible extension to include . To Hungary this would be preferable to joining with the Jugoslavs and Rumanians. The reaction from Austria is to speed up local dormant legisiation envisaging & grain flour monopoly within the coun= try. Reactions from FPoland will known followinig the Folish-Rumanian agricultural conference to be held at | warsaw on August 25. It is unlikely that Poland organically will join asy combination. A general Eastern Euro- pean agricultural conference will be held at Warsaw in September and will clarify the whole question. Great Britain—The prevailing de= pression was accentuated by the holi- day this week and more lerimug by the general blow to public by the rise in unemployment to more than 2,000,000. Coal output was fure ther reduced, and there is poor demand with resulting weak prices. The iron and steel industries are stagnant; hides, leather, jute, and some other commodi= ties are wholly inactive. Cotton con- move on & small scale with restricted production. In wool there was slight improvement during the week. The protracted drought has re- flected in the week’s sharp rise in wheat prices. Stock markets are dead except for small movements in mining Unemployment Gains. During the early l:gnthl of n:eo year unemployment was not e pass the :?,W%ooo mark until Christmas. When this number was ed last week, authorities estimated that by Christmas unemployment would pass 2,500,000. It is commonly realized now that extreme unemployment is due to world conditions and that more than ecessary. Two fundamentally important industrial de- velopments, each designed to' promote efficiency, show the effect of unemploy- ment is working in opposite directions. At the annual conference of the Miners Federation, application of the spread of hours in the coal industry was discussed, while at private meetings of Lancashire cotton interests, the expediency of adopting the labor-saving 8-loom sys- tem was argued. FRANCE.—There is no significant change in conditions. The price situa- tion is still a disturbing factor. Busi- ness is slow, but not yet serious. The predominant development is the con- tinuance of strikes among workmen who are protesting labor's contribution to the social insurance premiums with- out compensating wage increases. The strikers now total 140,000, notwith- standing settlements at .individual plants. Indicative of the small. portion of labor taking part in the .strike is the fact that total workers registered on the social insurance . rolls . .is . .8,000,000. Strikers, therefore, represent less than 2 per cent of .total registered workers, and are spread over 50 localities. With living costs mounting steadily, conditions are believed to harbor later major wage movements unless the gov- ernment acts soon to check the in- creases. Foodstuffs in particular are increasingly expensive, due to the re- cent tariff, which brought increases on cereals and meats. The prospect of short crops this year is a new source of worry. Decline in Germany. GERMANY —Though the. country is enjoying a short. political respite before the election campaign actually staris, business continues . its unabated and rather accelerated downward movement. People look with dismay at the unem- ployment figure, reached 3,000,000 Aggraval de- the inadequate mngmuonln: of the export valve, which until recently had secured outlets for German manu- factures. This was vital at a time when home demand was seriously cur- talled. The significance of the drop in manufactured "exports in June has probably continued in July and Au- gust. Evidence of the importance exports to manufacturers is contained in the report of the German Machine Builders' Association, which was lished this week. According to All motor cycles ridden in 'fimmlnq:mms.