Evening Star Newspaper, August 24, 1930, Page 61

4 i Ne NS _Pnr( Grlz P’un INSTITUTE FAGULTY INCREASED BY TW0 FOR WINTER TERM Cogswell and Burnside Added to Teaching Force as Classes Expand. BOTH ARE AUTHORITIES ON BANKING PRACTICES “Trust Functions” and Funda- mentals Are Subjects Assigned to Them. Theodore Cogswell, register of wills of the District of Columbia, and Har- old W. Burnside, assistant cashier of Riggs, National Bank, have been added to the faculty of the Washington Chapter, American Institute of Bank- ing, it was announced last night by Aubrey O. Dooley of the Federal-Amer- ican National Bank, chairmgh of the Ifl’\/llclfiunll Cfimm‘ll!‘w:e of the chapter. r. Cogswell wi ach a class in “trust functions.” By his education =ad experience he is held to be espe- cially qualified to handle the subject. Mr. Cogswell is a graduate of a local high school and of Georgetown Univer- sity Law School in 1916, He also took post te work at Georgetown, re- ceiving the 'degree of master of laws. Mr, Cogswell is a member of the bar of the District of Columbia, admitted to practice before all the local courts ;r':i‘ the Supreme Court of the United es. ‘World War Record. During the World War Mr. Cogswell served as first lieutenant of the 319th Infantry, 80th Division, and was hof- orably as a captain. He was seriously wounded at Landres St. George, France, on November 1, 1918, and was awarded the Distinguished Bervice Cross with two citations. Following the war he returned to the office of the register of wills, with which he had been connected prior to the wak; beeame deputy register and was appointed by President Coolidge as register on October 1, 1927. He has written & number of magazine articles on wills and the administration of es- tates and is considered an authority | on the subject. He is a member of the ‘Washington Board of Trade, the Cham- ber of Commerce, the American Legion and Barristers’ Club. The class in danking fundamentals in the chapter has becomg one of the largest in the curriculum, under Dr. Eliot Thomson of the Washington Loan & Trust Co. If the class enroliments E-g':m the figures they have reached ‘Thomson teaching part, and Mr. Burn- side, the new member of the faculty, teaching the other part. Mr. Burnside 2 o'Gradate of the Universiy of Maty: a of the University - land, 1904, with the A. B. degree. En- tering the Farmers’ & Mechanics’ Bank at Georgetown in 1912, he was made assistant cashier in 1922, and under the new administration of that bank as a branch of Riggs National Bank he is assistant manager. Mr. Burnside is an honor graduate of the Washington Chapter of the Institute, in the year 1920. He has .completed practically every advanced course offered in the institute, and in 1922, he won the Dis- trict of Columbia Bankers' Association essay contest. He was president of the Washington Chapter for the year 1924-25. Has Served as Chairman, Mr. Burnside has been chairman of a number of local committees of the chapter, served five years on the board of governors, and has served on three national committees of the institute. He has attended seven national conventions of the organization. Both Mr. Cogswell and Mr. Burnside will be present at the meeting of the faculty with the educational committee of the institute next Thursday in the chapter rooms. The faculty now con- sists of 11 members and there is a pos- sibility that it y be increased by the addition of two more. The educational committee is con- sidering the addition of a course in Teal estate and conveyances. The women's committee of the chapter has had under consideration a course ex- clusively for women, to be taught by a woman. Whether this course will ‘be | offered, however, has not been definitely | decided. ‘The enrollment for the institute will| open the week of September 15, and.: classes will start, Monday September 22. Peoples Drug Stores. Peoples Drug Stores have declared the regular quarterly dividends on both common and preferred stock. The dividends on common stock of 25 cents a share are payable October 1 to stockholders of record September 8. The dividend of $1.62', a share on rrelerred stock is payable September 5 to stockholders of record Septem- ber 2. Heard in Financial District. With the approach of Labor day & number of Jocal bankers will be plan- ning to return to their desks here in ‘Washington, and a few will be leaving | to_take vacations. Robert V. Fleming, president of Riggs National Bank, is expected to return early in September from Spring Lake, N. J.,, where he has been on vacation. Willlam J. Flather, vice president of Riggs National Bank, returned yes- terday from vacation at Poland Springs, Me. Nelson B. O'Neal, assistant cashier at Riggs, is being congratulated as the fa- ther of a son, born Friday. William S. Lyons, assistant secretary of the Unjon Trust Co., who has been 11l for severa: months from en infection, is reported to be gradually improving. G. Elmer Flather, assistant treasurer of the Union Trust Co., probably will be away from his post for several wecks on account of the double fracture of the knee which. he received recenily n a fall at the bank. Edward J. Stellwagen, president of the Union Trust Co., plans (o return the s Jast of this month from Lis Summer Howard Moran, vice pi American Security & Trust Co. will re turn September 2, from vacation in Canada. Charles E. Howe, treasurer of the American Security & Trust Co., plans to return from vacation September 4, from Miffintown, Pa. David N. Houston, trust officer of the American Security & Trust Co., will return from vacation soon after Labor day. Robert L. Flather, assistant secretary of the American Security & Trust Co., will return from vacation in Delaware September 2 Frank P. Harmon, vice president of the Merchants Bank & Trust Co., who has been visiting his family at Blue TIidge Summit week ends, will leave #ax vacation there next Friday. Pages 1 to 4 of Marots | | New Instructors I i Theodere Cogswell, register of wills (above), and Harold W. Burnside, assist- ant cashier of Riggs National Bank (below), who have been added to the faculty of the Washington Chapter, | business American Institute of Banking, for the Winter educational program. Canadian Railway Expansion Pushed FINANCIAL AND CLASSIFIED The Sunday Shae WASHINGTON, D. (., SUNDAY MORNING, AUGUST 24, 1930. -~ 'TRADE SENTIMENT ABROAD IMPROVES AFTER LONG LULL Usual Autumn Quickening of Industry Is Now Looked For. COMMODITY PRICE DROP IS BELIEVED NEAR END Hardening of Money Rates Pre- dicted if Expected Upturn Develops in Europe. Special Dispateh to The Star. NEW YORK, August 23.—Cable dis- patches to the Business Week give the following swift survey of business abroad for the week ending August 23: Europe.—Business sentiment is more confident this week, largely in antici- pation of the usual Autumn vival after a Summer lull. On the other hand, business actualities are monotonously unchanged, with no trend discernable toward a better or worse situation. Neither of the two condi- tions considered prerequisite to bas improvement have yet been fulfilled: (1) recovery of' pnmnry"g;m; 2 a renewal of capital inve ents. The downward trend in prices, it is true, has slowed up in recent weeks. Mineral and metal prices, for instance, have definitely struck_bottom, it is believed, | &*° There is considerable uncertainty in many othet commodities, however, especially those influenced by maturing crops, such as foodstuffs and cotton. Moreover, retail g‘rlce levels, supported by cheap credit, have failed to decline proportionately. Either further retail declines, involving trade losses and suspended commitments will now fol- low, or basic prices will move up, or mhe& before equilibrium is re-estab- France's Position. Meanwhile, the almost complete in- activity in principal European financial countries afforded no leadline wherewith to fathom the depth of re- serve capital resources. A plethora of short-term facilities, at unnaturally low rates, may as much measure restricted as indicate the extent of ac- cumulated idle funds; it does not neces- sarily measure the availability of funds for long-term investments. Opinion is that rates would harden sharply in the wake of a moderate demand for ex- panding 5 Great Britain.—Business remains dull beyond even the usual holiday Rapidly This Year Both “Systems - Continue Projects, Regardless of Present Conditions. BY J. C. ROYLE, Speclal Dispatch to The Star. MONTREAL, August 23.—Canada’s two vital railway systems, the Canadian Natlonal Railways, government owned, and the Canadian Pacific Railway, while they have not escaped the conse- quences of world-wide conditions, such as lessened buying power and slowing up of productive industry, are cemtiny- ing large expansion projects. ‘The Canadian National, with its 23,- 000 miles of steel and raore than 100,- 000 employes, serves every sort of in- dustry in Canada, and through its connections and lines of seven of the States of United States, it has, in some instances, brought industries into being by ploneering activities into the hinterland. The Canadian Pacific has seen its policies relative to colonization and immigration blossom into what has become one of the granaries of the British Empire. Montreal Terminals. This year, executives of both of these organizations decided, was not one where a false economy Wwould be sound practice. ‘The result has been con- tinued expansion. Chief in _interest among the projects is the Montreal terminals, & $50,000,000 undertaking to be extended over 10 years. It will mean eventually a large modern central sta- tion, co-ordination of existing accom- modation and the solution of a’serious problem by elimination of grade cross- ings around Montreal. The Canadian National road this year also started the fast Montreal- Toronto-Chicago fiyer. It has installed the train telephone, the invention of & road technician. It has launched three new steamships for the Pacific Coast service and has opened & terminal hotel —the Nova Scotian—at Halifax. While talking of the Canadian Na- tional, mention should be made of the introduction of ofl-electric cars and locomotives, which proved a revelation, and to the putting into service of new giant steam locomotives. known as the 6100 class. Then Chambrette cars and solarium cars, fitted with vita glass, s0 that healthful rays of the sun might penetrate, were added along with school cars which travel to the northern set- tlements. Canadian Pacific. The Canadian Pacific Railway, with its wide resources, is proceeding with its program of branch extension projects. It has put into service this year the 26,000-ton liner Empress of Japan, the fastest ship on the Pacific, and has launched the 42,500-ton transatlantic greyhound, the Empress of Britain. These two ships bring the company's expenditure on improvement of ocean transportation up to nesrly $100,000,000 in the past decade, and there are indi- cations that yet more ships will be built he near future, o (Copyright, 1930.) EARNINGS REPORTED. NEW YORK, August 23 (#).—The North American Car Corporation today of $139,012, equal to 60 cents a share on the common, compared with $201,406, or $1.50 a share, in the like q last year. E. R. Brigman, president, said the re- duction in net was caused by loss in subsidiary operations and that steps curtail these operations. net profits of $2,818,823, equal to $1.05 per common _share, $8,862,409, or $3.15 a share, in the like period last year, Orpheum Circuit, Inc., and subsidi- aries for the first half reported a net{177,570. $80,330, compared with a net _ Cleas i 5 T L e snnon, loss of loss of $817,444 for thé. first year, i RK, have been taken either to eliminate or | weekly statement level, although an improvement is hope- fully expected in the next two weeks ll:; the end mfl( the holida TR any industry is “only Ts "? the juency of comment in’ filarket reports to the effect that conditions are now sounder in point of interrelation of supply and demand wmpflu. strikes a W encouraging Finan- cial activity, however, *is at a stand- still. Money has again turned slack at 1% per cent (demand). ‘Centinu- ance of low rates is indicated. ling exchange is main its recent im- provement. With gol exportations dwindling, the position of the Bank of Fngland is easier. Coal Production. Among the key industries, coal pro- duction continues to exceed demand, while export ship rates are the lowest since 1909. Iron and steel demand is still in the hand-to-mouth stage. Prices of pig and Cleveland iron are reduced in the hope that Autumn orders will be attracted. Uncertainties in the cotton price sit- uation and troubles in the Far East are further contracting an already severely restricted activity in Lan- cashire; Bradford woolen mills are ob- serving a holiday shutdown. July foreign trade showed some re- covery, which exports valued at £51,- 000,000, gaining 20 per cent from the June low, but still representing the second lowest month of the year. Im- ports improved by £2,000,000. PFrance—The three-day Annunciation holidays have caused a general business pause in France this week. The strikes in Northern Prance are tending to be. come localized at Lille and Roubalx, but are. becom! tensified. Basically ce is entering a period of disturbed values of which strikes over wages is only one indication; So far, general activity is still markedly favorable over thg entire country but it is slowly contracting; it is becoming evident that the cycle of prosperity, which has lasted two years, has passed its zenith. German Trade Improves. Germany—Improved foreign trade as reflected by July figures and a measure of stock market recovery after the re- cent sharp decline are two encourag- ing developments following months of monotonously unbroken reports of in- tensifying depression. Basic conditions, however, give no sign of an early gen- eral improvement. ‘The government nr?nemly intends to revive action toward reducing prices established by cartels. ©Of more immediate actual importance is the decision of the Rhur mine own- ers to cancel wage agreements Septem- ber 30. The industry hopes that labor will consent to a 10 per cent wage cut in_combination with & corresponding reduction in coal prices. The cut would affect 335,000 miners already working on short time. Experts, however, ques- tion whether the intended price cut, averaging 1 mark per ton, is enough to counteract increasing imports of cut-price British coal. NEW YORK BANK STOCKS NEW YORK, August 23 (Special).— Bank stocks and trust shares drifted lower in dull trading today. Bank of United States at 38 was off ;. Brook- lyn Trust 690, off 5; Chatham-Phenix 106, off %4; Chelsea 29, off };: Chemical 63%, up V4; National City 13215, up 3; Empire 79, off %; Pirst National 4,800. | off 25; Corn Exchange 154, off 1; Irving 48Y,, off Y,; Manhattan 104, off 3o Manufacturers 83, off 1%5; New York Trust 244, off 1, and Pub] 100, off 1. reported for the June quarter net profit | The following were unchanged: Bank- ers 138';, Oentral Hanover 322, Chase 138, Commonwealth 385, Continental 26 uarter | and Guaranty 615. AT ‘WEEKLY CLEARINGS. NEW 'YORK, August 23 (#)—The the New York Clearing House sho ws: Atlantic Refining Co. and subsidiaries | Total surplus and undivided profits, reported for the first half consolidated | $1,208,221,000; unc! ed. Total net demand deposits (average), compared with | $4,584,000; increase. deposits (average), $1,882,000; ecrense. Clearings week ended today, $5,043,- week ended August 16, $5,- Time Business News in Retrospect Importance of Porthcoming Bankers' Convention Is Stressed by Mr. Lonsdale in Urging a Large Attend- ance When Meeting Is Opened at Cleveland Sef- tember 29. BY L A. FLEMING. John G. Lonsdale, president of the American Bankers’ Association, has is- sued an appeal to the bankers of America seeking to address each one personally with an urge that they attend this year's convention which is to con- vene in Cleveland September 29. Mr. Lonsdale recog- nizes the great importance that attaches to this meeting, having to consider, as it will, the several sug- gestions for the re- vision of the Fed- eral Reserve act. Mr. Lonsdale of- fers his constitu- ents three subjects for their consider- ation: One, the trend in banking; two, legislative thought as it relates to bank- ing, and three, the American Bankers’ Association meeting in Cleveland and what that convention may mean to your own business. “Never before has the banking busi- ness of the United States been con- nted by similar conditions,” says Mr. Lensdale, adding, “the banking business is fundamentally sound; the achieve- ments of the business as a whole in the last decade have bee: L A. Fleming. incomparable; it ; | has been the mainspring in a season of unparalleled prosperity, and it has held firm, sound and unmoved during the recent period of stock market lig- uldation. Lying before it are greater op- rtunities for service than have ever fore been possible in banking and it is our privilege and duty to develop these opportunities.” ferring to legislative hearings and the efforts now being made to better the reserve law, Mr. Lonsdale says: “Earnest men in official and in private life are conscientiously trying to find the correct answer to strange and per- plexing problems. It is the duty of all of us in the profession to help so the public opinion may be clear and not confused, so that our business and all business may pursue a course during the coming years that will retain the pros- perity our Nation possesses and that will multiply that prosperity.” * ‘The convention program is being pre- pared to make the convention a place of opportunity and of profit to the man who is confronted with special as well as with general problems of ess. A Matter of Seven Follies. ‘The Fletcher Savings & Trust Co. of Indianapolis has as its president Evans Wollen, who is said to be noj for his business acumen and his support of the Democratic party. He has just promulgated a group of seven follles. that are interesting and that have, perhaps, & lesson in wisdom. Here they are: 1. 'The folly of having thought and acted as if the rate of business activity in the early part of '29 could be con- tinued indefinitely. 2. The folly of regarding the depres- slon as caused by the stock market crash, which came four months after the depression had started, inexorably. 3. The folly of thinking that the depression was only “psychological” and could be shooed away by big talk. 4. The folly of the provincial view that “we have nothing to do with abroad,” that business here can get well while business abroad is sick and that we can shut out imports without impairing the markets abroad, which are essential for our surplus products. The folly of mortgaging future income for luxuries and of thinking that business can be permanently stimulated by a practice which antici- pates but does not enlarge purchasing wer. . pou' ‘The folly of expanding business by advertising and salesmanship that absorb all the profits. 1. ‘The folly of not now organizing each his own affairs to meet condi- tions as they are, instead of relying on ictions that activity like that of early 20 is around the corner. To be sure, the predictions may turn out to be true—if they do, so much the better —but again they may not. Prosperity in One Line. ‘There is one line of activity wherein there is no complaint as regards the volume of buying, but where there is some talk of directing effort to get more profit out of the enormous trans- actions, reference being made to the manufacture and sale of cigarettes. If the profits have been cut in this line of trade, the average layman would credit the matter to excessive and costly advertising. Reaching for Luckies in July alone resulted in 583,000,000 more being sold than in July, 1929. At the same time the sales of cigars dropped heavily. Mergy Dividend. Directors of the Mergenthaler Co. have declared the regular dividend of 1), per cent for the third quarter of the year, payable September 30, to shareholders of record September 2. Business with the company is said to be poor, but the large cash resources of the corporation assure payment of dividends without interruption. Few Thoughts. Wonder if the 10-share buyer is wel- come in the stock brokers' offices these days? %onuull ‘Things of the past, reck- lessly dispensed in repayment for heavy work logflr after usual closing time. Many & istmas gift may be credited to the bonus. President Green, A. F. L., wants high wages for labor to bring back pros- perity. 8o does every one else. Industrial dullness for once also ex- tends to the “white collar” brigade. The ticker has slowed down some. It s certainly tempting, even to one who does not believe that prosperity is ht around the corner, to keep from :’nm; a few shares of Anaconda and Kennicott to the stocks in the vaults waiting for the belated advance. Great days for municipalities desiring to issue bonds. Rates are low. CONSTRUCTION DECLINES. By the Assoclated Press. Construction continued to ease off last week as compared with the previous riod, while a substantial decline was dicated by Census Bureau calculations over the corresponding week of iast year. The following figures for com- rrable periods are for building con-' Practs executed in the region East of th ‘Mountains: $h0, Tiodsy Aueun 413,051,000 vious _ weel 538, g‘-fi week last vm. the trend of | X %TRADING IN STOCKS REFLECTS BETTER BUSINESS 0UTLOOK Some Groups Make Good Re- coveries During the Week as Shorts Retire. CROP DAMAGE FACTOR IN DELAYING UPSWING Real Estate Mortgage Sitnation Marked by Growing Number of Defaults. BY CHARLES F. SPEARE. Special Dispatch to The Star. ' NEW YORK, August 23.—Sentiment surrounding stocks has been more cheerful the greater portion of the week. It has been reflected in some good recoveries and the regaining of a fair percentage of the average de- cline earlier in the month. ‘The quieter commodity markets, with indications that the drought damage has been apprehended to its maximum nt, and a nervousness in the camp of the extended short interest, have checked liquidation. Business reports are hetter in some quarters, as in iron and steel, but the story of industry and retail trade generally is one of restricted operations and a hesitancy on the part of tonsumers to buy more than im- mediate requirements compel. There have been further dividend reductions in recognition of these conditions as well as of the fact that current earn- ings have not been covering quarterly requirements. Effect of Crop Damage. As the end of the Summer season ap- proaches it is evident that further de- lay in the recovery of business has been produced by the crop damage, which has actually reduced the buying power of large sections and given excuse for postponement of forward mo ents in industry. The fact that money re- mains at such & low rate is proof that there has been less than seasonal im- provement. On the other hand con- sumption in most lines is now in ex- cess of production, so stocks are stead- ily being cut down and a potential de- mand is being created that may exer- cise & quick and positive effect on busi- ness sentiment in the last quarter of the year, A factor in delaying progress and contributing to the distress among such a large number of small banks is the real estate mortgage situation reflected in foreclosures and defaults on a scale seldom witnessed in this country. This is & sequel of a period of extravagant building. It has affected nearly every tmlsortl.nt metropolitan area in the United Staf tes. It had taken the bond market a long time to recognize the fact of easy money and to tune itself to this situation. It may require an equally extended period before common stocks reflect the differ- ence between ruling rates for call and time loans £nd the ylelds they re- turn at going prices, Occasionally they have shown symptoms of this. In gen- eral, however, much of the buying has been either for a temporary profit, fol- lowing the numerous sharp declines ex- perienced in the past four months, or absorption wholly for the purpose of capital appreciation over a term of years, Difference in Returns, The investor has a wide range of se- lection between the two groups of equities, the one selling at a low income return, but strongly fortified by surplus reserves and deflated to a more normal relation between earnings and price, and the other providing the accepted stand- ard return of 6 per cent and from there entering the field where the speculative chances are related to future dividend policies. This difterence in return goes from & minimum of 1}z to 3 per cent up to a maximum of 15 per cent with even higher ylelds on a few shares whose rates have already been adjusted to a" decline in gross corporation re- ce! The situation with respect to invest- ment returns on common stocks may best be indicated by listing some of the prominent New York Stock Exchange shares that are included in the several grol:gl of low, medium and high ylelds on the basis of current quotations. Group 1. Stocks ylelding 3 per cent or under. This comprises 25 issues, such as American Power & Light, American Water Works, General Electric and Standard Oil of New Jersey, Group 2. Stocks ylelding 4 per cent and under. The number is 41. It is representative of the “blue chip” issues and those influenced by possible ,pur- chases. for control and includes Consoli- dated Gas, Eastman Kodak, Interna- tional Harvester, Pacific Gas & Electrie, Southern California Edison, Public Serv- ice of New Jersey, Union Carbide & Carbon, Union Gas Improvement, Dia- mond Match and Westinghouse Electric. While the argument for their purchase is mainly that of their equity position they allow of a fair net return over the cost of money required to carry them. Group 3. Stocks ylelding 5 per cent and under, This is more comprehensive than the first two with nearly 100 members in it. Among them are Ameri- can Telephone & Telegraph, Interna- tional Telephone, which in 1929 sold on about a 1.50 basis, American Tobacco, Aitchison, Chesapeake & Ohio, New York Central, Norfolk & Western, Union Pacific, United States Steel and Wool- worth, as well ag most of the old line industrial preferred shares. The ele- ment of income return here is probably as important with the purchaser as that of future appreciation for it rises for the first time above that of high- grade bonds and savings bank interest. Group 4. Stocks ylelding from 5 to 5% per cent. This numbers 75 and has in it many of the better grade public utility 6 per cent preferred stocks sell- ing at 1 to 2 point premium over par. 1t also includes such common stocks as Allis Chalmers, Canadian Pacific, Penn- sylvania, New Haven, Southern Pacific and Delaware & Hudson. With the ex- ception of Canadian Pacific present dividends appear secure. Group 5. Stocks ylelding 5% to 6 per cent. Number 25. Again the pre- ferred shares of public utilities make up the largest proportion of this List. Group 6. Stocks ylelding from 6 to 7 per cent. Total 120. We now enter an income zone essentially investment. The average investor demands a yleld of 6 per cent or better “with safety” when he is buying stocks. On bonds his mini- mum limit of yeturn may be from 5 tQ 5% per cent. Today he has a broad field In which to make his selection. He must choose carefully for many of the shares that meet his income require- ments are under the influence of r earnings, which, if continued, may lead to a revision of dividend rates and ac- cordingly, to that of return. In this group are American Smelting & Re- fining, Atlantic Coast Line, timore & Ohlo, Great Northern, Gold Dust, " (Continuied on Fourth Page) |WALSON HAS SCORED SUCCESS ' IN DISTRICT BANKING FIELD President of Liberty National and Stock Exchange Popu- lar With Associates. Thriving Institution Wkich He Heads Was Started Shortly Before World War. George O. Walson, president of the Washington Stock Exchange and also of the Liberty National Bank, has made ‘Washington his home continuously, was educated in local schools, served his ap- prenticeship with John M. Riordan, Maurice Otterback and H. H. McKee in the National Capital Bank under the senlor Herrell, father of Ernie, a prom- ising young banker, new head of & large finance corporation. Anacostia was long the home section for Mr. Walson, his interests being varied aside from his banking connec- tion. He started after leaving the Cap- ital National in the Union Savings Bank, was called to the same position in the Commercial National and then when George W. White was called to the presidency of the National Metro- politan Bank, of which his father had been cashier and where he himself started as a messenger, Mr. Walson be- came cashier of that institution. A savings bank over which he should preside had long been an ambition with Mr. Walson. After several years with the Metropolitan he organized the Lib- erty Saving$ Bank, located on New York GEORGE 0. WALSON. avenue just west of Fourteenth ltl’ev northwest. Breaking out of the World War and the coming of thousands to the city helped the Liberty materially. The Lib- erty National Bank, with a handsome home on a historical site came into ex- istence a little later and has been very successful since its start. President Walson has long been one of the popular men of the banking fraternity, although of late he has not been very active in association matters. Mr. Walson greatly_enjoys his suburban home on South River, in Maryland, and has just returned from a vacation there. INVESTMENT BOND MARKET IS STRONG Public Utilities and Legal Rails Especially in Demand During Week._ Special Dispatch to The Star. NEW YORK, August 23.—The tech- nical position of the investment market was further improved during this week because of the continued absence of any sizable amounts of new bond is- sues, together with the low rates for money and the reluctance of many in- vestors to put their” money in stocks, until the business horizon shows a larger streak of clear sky ahead. The list ended the week at the high- est level since early in 1928. Standard Statistics' Index of 30 bonds, which is based on the average prices for the year 1926 adjusted to the base 100, stood at 101.1, against 1009 at the end of last week, increase is not wide, but since it covers a cross section of the entire domestic market and must make allowances for the unchanged levels of junior raflroad bonds, and the weak. ness of some of the semi-speculative dustrials, the strength of prime issues is apparent. Chief Advances. The chief advances have been in public utilities and legal railroad mort- gages. first named had their ad- vance in previous weeks, but last week, with the investment demand gemng ever keener as new issues dwindled an dealers moved out what stock they had, attention turned to. railroad securities despite the steady drop in railroad earnings during the past half year and more. The week saw a total of only $28,- 539,500 bonds offered, against $30,767,- 000 in the previous week and $54,515,000 in the same 1929 week. Of this week's, nearly half consisted of an _issue o! Denver, Colorado Refunding Water 4% per cent bonds, due serially from 1931 to 1967. They were publicly at prices to yield 2.75 to 2.95, according to maturity. 1t is only & matter of months since Den- ver judged the market as not ready to receive its bond offering and postponed its issue, but the city sold the present issue at a cost of 4.01 per cent, close to a record price for that and many other Western cities. The market, while absorbing & strong demand from institutions and individ- uals, has also had to digest selling by those who believe that with prime bonds anywhere from 4 to 6 points above the Jow levels of the year, and with stocks at their present low levels the point has been reached in the security cycle when profits n bonds should be realized and good common stocks bought with the proceeds. As a matter of fact, on ‘Tues- day and Wednesday, when stocks ad- vanced strongly and consistently under a light volume of trading, bonds were sold in sizable blocks for this pur- pose, but the movement ended when stocks hesitated on Thursday. Consistent Gains. This, however, did not actually lower bond prices, which have shown & con- sistent day-to-day improvement, be- use savings banks and tyust funds, which are barred by law from invest- ment in stocks, have provided such a volume of business as to keep legal is- sues at scarcity values. Much the same may be applied to insurance companies, though their portfolio requirements are broader. This unabated demand will probably result in continued strength in bonds, even if money rates go higher in the Fall, which is considered normal to the season. This might seem paradoxical, but at current rates a great many bonds, notably munlc:i:.ll and railroad equip- ment trust certificates, are already sell- ing out of line with money rates. Next week does not promise anything startling_in ‘the way of new issues either. There is about $30,000,000 of public utility financing in prospect, but this will probably be put over till Sep- tember. Financing requirements are at a low ebb, because of the huge amounts of bonds that were put out in the first half of the year, and even the high prices of today's bond market cannot attract municipalities to increase their bonded debt, nor convince corporations that now is the time to secure new cnpl'.nll and build needed or projected extensions. In September there is little likelihood of any large amount of new bonds. indication of this may be found in the fact that bonds and notes falling due in that month amount to $72,882,020. Practically the whole amount has been provided for and will not require more than limited new or refunding financing. (Copyright. 1930.) Grocery Firm Expands. NEW YORK, August 23 rangements have been made whereby Kroger Grocery & Baking Co. will oper- ate the general grocery, meat and pro- duce departments in twq Sears, Roe- buck & Co. stores in Chicago and Cin- cinnati. Albert H. Morrill, president of Kroger, said the establishment of the two departments is an experiment and * if successful will result in the establish- ment of similar departments in other Bears, stores. %An | compare with 880,000 home- (). —Ar- |t Peak Year Is Seen In Electric Power Sales During 1930 Trade Journal Editor Analyzes Prospective Customer Increases. Spectal Dispatch to The Star. NEW YORK, August 23.—The elec- trical industry in the United States will reach a new peak in domestic customer increase this year owing to large gains in electric refrigerator sales, L. E. Moffatt, editor of Elec- tric Merchandising, announced today in making public the results of a Na- tion-wide survey of ruhhc utility do- mestic customer volume. The new peak will come in the face of a de- cline of 10 per cent under the num- ber of new homes wired for electricity in 1929, “The high domestic customer gains year will come to be reached this fatt. will the industry a net gain of at leas 1,700,000 domestic customers. The fig- ure almost reaches that of 1924, which year the central station com- inies wired 1,748,000 new homes, the t gain in domestic customers ever New Wiring. “Approximately 800,000 new dwell- ings will be wired the end of this year. The total is a drosooo{ 10 per cent from the total of 880,000 for 1929. But the number of electric refrigera- tor customers will jump to about 900,- 000, showing a gain of 270,000 over the total of 630,000 refrigerator sales reached last year. Both of mestic power income sources are prac- tically equal in their revenue value to the public utility. The average do- mestic customer income per year from a wired home is $30. The revenue represented by an electric refrigerator is almost exactly the same amount. “Reported declines in the number of new homes wired in the United States only seem to represent great losses,” said Mr, Moffatt, “when they are com- pared with the volumes of such in- stallations achieved in the years im- mediately following the Great War. In those years, the electrical industry had available tremendous generating oca- pacity, which had been built to meet demands caused by post-war industrial expansion. The industry, in seeking outlets for this generating capacity, made an intensive drive to create new domestic customers. These came from the ranks of the owners of old homes, as well as from the builders of new ones. In time, the percentage of old homes wired for electricity substantially reached the saturation point and since then the industry, finding its domestic customers in the field of new home construction, reflects in its new wired homes customer volume the rise or fall of new dwelling construction. Today, in the United States, the average old home in a community of any size is wired for electricity. Generally speaking, the old home is not today a prospect for new domestic customer increase to the average electric light and power com- pany, Appliance Use. “The present rate of growth of pliance use, especially in refrigeration and cooking,” the editor added in his survey report, “indicates continued gains in revenue to the utilities companies. As the use of appliances increases, the in- dustry will achieve revenue gains from domestic customers at present unheard of in utilities history, and this despite present gstablished policles of rate re- duction. “Records for the last seven years show that refrigerator sales have mount- ed constantly to the point where they compensate now and later will more than compensate for any declines in new wired home contracts. In the year 1925, the number of homes wired for electricity was 1,398,000 and the total of refrigerator sales reached 73,000. In the following 12 months 1,493,000 new home-wiring customers were gained. Refrigerator sales jumped to 248,000. In 1927, 1,240,000 homes were wired for the first t.l'fle e;nmgoo %:e customers ‘were gain refrigerator pur- chases. In 1928 new home-wiring Leis tracts totaled 1,135,000 and refrigerator | sales reached a total of 468,000. These wiring con- h‘:cu in 1929, with 630,000 refrigerator sales.” U §. TREASURY BALANCE. ‘The United States Treasury balance, announced today as of close of business August 21, was $111,894,043.51. Customs ) for the month to date were tal ordinary expendi- Auto Registrations Gain. NEW YORK, August 23 (#).—Regis- trations of new automobiles in 12 of the 23 States reporting for July show an increase over June. Total new pas- registered in the 23 States was 175,386 last month, com) with 74.253 in June and 126,815 in July of 1030, » AR W WS Classified Ads PagesSto 1l « WESTERN BANKING LEADER PREDICTS BUSINESS UPTURN Head of Los Angeles Insti- tution Sees Slow but Steady Recovery. FINDS CITRUS GROWERS IN FORTUNATE SITUATION Increase in Motion Picture Sched- ules Is Hopeful Sign, He Declares. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, ‘August 23 (N. A. N. A). ~—Horace Dunbar, vice president of the Citizens’ National Trust & Savings Bank of Los Angeles, thinks the present busi- ness situation in the West is “swinging upward for & slow but steady pull.” “Our banks are well supplied with money for the purpose of reviving in- dustry and the increase in savings ac- counts would indicate that our people are thinking more about thrift than about speculation,” says Mr. Dunbar. Referring to the citrus industry, this California banker says: “The citrus growers of California are in a prosperous and fortunate position. ‘The Valencia orange crop this year nes been comparatively small, but prizes were satisfactory. All over the Unitsd States lemons are in demand at Rif prices, which means a fine profit for the producers. The prospects of d5th navel and Valencia orange crops for the coming season are encouraging.” In Southern California the motion picture business is & major one. “The motion picture industry makes for pros- perity when it makes good pictures,” says Mr. Dunbar. “The larger com- panies in California are on a heavier schedule than a year ago, with more featured productions at greater expense and with more employes.” So the Far West territory, centering about Los Angeles, seems full of con- fidence for the future. Per Capita Money Circulation, ‘The per capita money in_circulation in the United States declined from $40.95, reached last Novembet, to $36.28 at_the end of July this year. ‘To the man on the street, this de- crease in the rhyllul money in circu=- lation means less business due to the income reduction of the great mass of consumers. ‘While the United States carries on more than 90 per cent of its entire transactions .by check, the dfl!lmne still largely On a 1,500-mile motor trip from the Middle West to New York recently, this writer observed one healthy humming activity. In nearly every city and town along the route miniature golf courses Were being installed, while those al- ready in operation were reporting & “boom” business, Nothing quite like the miniature golf mania occurred in the United States and Canads in recent years. A yeal they were unknown—except in da and one or two other Win- ter resorts. Today hardly town of any size but what claims either one in operation or the promise of one soon. Profits in _kl%me of‘ rtam hl;e‘::fl: very large. e majority are doi veg nrt‘l:hctory business. But with the number of new ones springing 1‘1: ushrooms dally, it will not Tk B Jarge profits will be & thing of the In spite o!p:r.:'; new and unexpected competition, all golf courses are ed to be just. as active this year as ever. e TR e e wi : e m in many other lines. Gold Production. Dr. E. 'W. Kemmerer of Princeton University, now on his way to Colombia, where he has been called into consulta- tion in connection with important financial arrangements, made this com- ment before leaving: “The world’s future production of gold is & great uncertainty. Whether it will increase more or less rapidiy than the world demand for it is highly debatable; and, if our present gold standard is continued without render- ing it adaptable to a changing supply of gold, the question is a highly im- portant one, for upon its answer ‘will largely depend the welfare of_mcnuy hundreds of millions of people.” Dr. Kemmerer's report on China, just announced, advocates the gradual adoption of the gold standard. Anticl- pating the criticlsm that such a policy, if adopted, would tend to increase the purchasing power of gold, and thus lower the general level of prices in 1he gold standard countries, he argued that China, just as much as any otner na- tion, is entitled to the benefits of & stabilized rate of exchange with the principal commercial countries of {he world, if her ':rld:‘ l&x‘: commerce I:: to be developed same way other nations. China, potentially the richest of nations, must not be handi- capped. “Adoption of the gold standard by China may mean a temporary read- justment for other gold standard countries, but, in the end, there is no other way for her to develop,” said this Princeton professor. So the gold problem is assuming more and more a place of major im- portaiice in world affairs. Motion Picture Industry. The motion picture theaters are be- w "t:tr:Fo& increased crowds with cooler weather. Of the 20,000 theaters in the United 3"4::!. t‘mly ublguc 400” are :ultpped Tefrigerat! systems, most wlflch are mb: Lnyam‘run theaters in the larger cities. Other theaters are installing cooling equipment as fast as possible, but the number completed will not probably exceed 500 this year. Motion picture leaders are concen- reported to be the next order of things. Good pictures almost always bring satisfactory box office returns. So the motion picture industry is an- pating a very satisfactory Fall and ‘Winter trade. (Copyright, 1930, by North American Newss paper Alliance.) SILVER QUOTATIONS. YOI A 23 o~ Mlm“‘ w Rl.. ugust (@) —Baz a city or & .