Evening Star Newspaper, September 17, 1930, Page 12

INCREASE IN STEEL BUYING REPORTED Hand-to-Mouth Policy Aban- doned by Some of Larger Jobbers. NEW YORK, September 17.—Scat- fered evidences of breaking away from hand-to-mouth buying, the first de- vistions from that policy in many months, constitute the feature of the week’s news in iron and steel, Iron Age will say tomorrow in its weekly review | of the industry. “No sweeping change in the attitude | of the trade has yet developed” the| review states, “but the fact that any sizable forward commitments should be negotiated, or even considered, is sufficient to give the market a more Buoyant tone. Pig Iron Buying. “willingness to contract ahead has fhus far been most notable among pig fron buyers, with a number of large consumers covering for the remainder of the year and in a few cases through the first half of 1931. Details of trans- actions are being closely guarded, but recent, sales are known to include three of 4,000 to 10,000 tons, while inquiries in various parts of the country embrace nine of 2,500 to 10,000 tons, the larger one calling for steel-making iron. “Since no marked increase in the flow of iron and steel to major con- suming outlets appears imminent, the broadening of demand is attributed to the belief that prices have struck bot- tom and that liberal purchases at the present level will prove a good invest- | ment. “A manifestation of the same con- viction is seen in the efforts of some of the motor car makers to place con- tracts covering their requirements in automobile parts through the first six months of next year “Greater conservatism rules among buyers of finished steel. More than haif of September has passed without bringing an appreciable gain in aggre- gate bookings. The steel industry’s op- erations, as measured by ingot produc- tion, remain unchanged at 58 per cent of capacity. “The chief source of encouragement s an increase in demand for sheets and strip. Thus far in September, specifications for strip steel have been 10 to 20 per cent larger than in the first half of August, while the leading sheet producer’s volume of orders last week was the best since April. A fair amount of contracting is reported also, especially in sheets. Jobbers Re-enter Market. “Bcarcely any of this gain in business is attributable to the automobile indus- try; it is accounted for mainly by the re-entry into the market of jobbers and miscellaneous manufacturing consumers, who have been rigidly restricting their inventories in recent months. Among the various lines represented are makers of steel barrels and drums, builders of office and store equipment, manufac- turers of radios, typewriters and cash , and fabricators of farm equip- ment. An interesting new, although not yet large, outlet for strip steel is the manufacture of equipment and fittings for miniature golf courses, which are also taking considerable pipe. ‘an specifications are undi- min! and are frequently of an ur- t character. Can companies in ht areas find that they have over- estimated the damage to crops and are pressing tin mills for deliveries.” Awards of fabricated structural steel| in the past week totaled about 25,000 | tons and included substantial projects in the South and West. New projects totaling about 35,000 tons came into market. | copper, CORPORATION REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS NEW YORK, September 17.—The fol- lowing is a summary of important Cor- poration News prepared by the Standard Statisties Co., Inc., for the Associated Press. News Trend. Railroad freight car loadings in the week of September 6, registered a larger than seasonal decrease compared with the preceding seven days. Total for the week, which included the Labor day holliday, was 856,637 cars, a decline 127,867 cars from the previous week and below any like week since 1921. Compared with the 1929 period, decline was 161,844 cars and against 1928 week, | 134,748 "cars. Statistics of the producing and re- fining division of the oil industry con- tinued favorable. Official crude oil esti- mate shows domestic daily output was reduced 17,300 barrels in week ended September 6, to average 2,419,750 bar- rels. This is lowest average in several years and compares with daily produc- tion of 2,965,400 barrels in 1929 period. Gasoline stocks were reduced 741,000 barrels in same week to 37,832,000 bar- rels, the'lowest amount this year. Pre- liminary figures of August foreign trade places exports at $300,000,000, increase $38,000,000 over July, but $81,400,000 be- low year ago. Imports are estimated at $217,000,000 or $2,000,000 below July and $152,000,000 under August, 1929. Corporation News includes unfavorable dividends by Madison Square Garden and National Rubber Manufacturing. National Biscuit reduced extra dividend to 50 cents from $1.00. The Companies. Associated Oil advances price gasoline 1 cent gallon to 21 cents in San PFran- | cisco, Calumet & Hecla consolidated copper operations to go on 5-day schedule, Sep- tember 20, against 6 days formerly. Commercial Credit acquires 133,150 additional shares Aviation Credit com- mon stock at $23.06; now controls over 80 per cent total outstanding; offers to purchase remainder at same price, Durant Motors, Inc., introduces new four-cylinder lne; range, $675 to $695. Gamewell Co. earnings (preliminary) quarter to August 31 equal $1.58 com- mon, against $2.12 year ago. General Motors dealers’ stocks 35 per cent below year ago; inventories raw and semi-finished products off 30 per cent; cash and equivalent above last year. Granby Consolidated Mining, Smelt- ing & Power current cost production before depreciation, 9 cents pound, against 9.95 cents in second quarter, 12.07 cents first quarter and 10.6 cents in 1929. Madison Square Garden reduces quarterly common dividend to 25 cents; paid 3715 cents formerly. Midland United Owns 97.8 per cent common and 82.1 per cent preferred stock American Public Utilities. Missouri - Kansas - Texas Railroad president estimates 1930 earnings at $3_common share. National Biscuit announces extra dividend 50 cents on common stock: declared $1 year ago. i National Rubber Machinery reduces quarterly common dividend to 25 cents; paid 50 cents previously. Public Utility Holding declares initial dividend 121, cents on class A and common stock. Richman Bros. year’s dividend require- ments more than covered in first 8 months. Timken Detroit Axle subsidiary Au- gust ofl burner sales 65 per cent above year ago. T. 8. TREASURY BALANCE. The United States Treasury balance announced today as of close of business September 15 was $30,930,256.38. Cus- toms receipts for the month to date were $16,662,400.39. Total ordinary ex- penditures, $13,052,279.03. YHE EVENING OIL CONSERVATION HANGS INBALANCE Oklahoma Operators Await| Decision in Julian Case Be- fore Pursuing Program. BY BENNETT WOLFE, Associated Press Staff Writer. TULSA, Okla., September 17.—Agreed generally that the outcome of the C. C. Julian Oil & Royalties Co.'s deflance of Oklahoma proration orders holds the key to the future of ofl conservation in the United States, leaders of the pro- ration movement#n this State marked time today in forwarding a curtail- ment program for the balance of 1930 Although members of the Proration Committee of the Midcontinent Oil and Gas Association busied themselves with details incident to the promulgation of a proposed new proration for Oklahoma, they deferred maki m“y;f definite recommendations un the State Supreme Court has cted in the Julian Co.'s attack on the legal structure of the conservation movement. Await Decision. Called into session yesterday to draft recommendations fixing Oklahoma’s al- lowed production for the final quarter of the year, the committee agreed that any such step should await the Su- preme Court’s decision. The present daily allowed production from OKla- homa fislds is 550,000 barrels. Because some purchasing companies are reduc- ing thelr pipe line takings the pos- sibility exists that the maximum pro- duction figure may be lowered, pro- vided the State conservation acts are uphsld. Several pipe line companies have an. S nounced nflrolley of refusal to place additional ofl in storage, thus ealling TAR, WASHINGTONS for reduction of - their daily runs to the actual market demands. With last week's figures reflecting continued progress of the curtailment movement the threat of a disturbance ute:rmmm programs has plainly alarmed many leaders of the industry. The figures showed a de- cline of approximately 20,000 barrels in the country's daily average cutmn: of crude oil, the drop being attribuf largely to increased success of Okla- oma’s proration plan and inauguration of Texas’ mew program. Describing the present problems of the oll industry as the ‘“‘most serious” ever to confront it and urging “‘care- ful consideration” of methods of so- lution, E. B. Reeser, president of American Petroleum Institute, said h shuddered to think of what the situa- tion might be if the proration move- ment had not been devised and effected. California Agreement. Action of California operators yes- terday in agreeing to reduce the per- mitted daily production of that State to 550,000 barrels, the same limit as prevails in Oklahoma, a cut of 46,000 barrels, was hailed as a heartening note by the institute head. He returned this week from an investigation of con- ditions in California. “The decision in the Julian case is awaited eagerly by California pro- ducers,” he sald. “They feel the future | of conservation depends on it."” Reeser, who is president of the Barnsdall Corporation, sald he would be “the most pessimistic oil operator in existence” if he did not have confi- dence that the industry would continue to be able to solve its problems. C. C. Herndon, chairman of the Ok- lahoma Protation Committee and president of the Skelly Oil Co., declared that undermining of Oklahoma’s pro- ration system would be the beginning of disaster for ali conservation programs and that the result would be the re- Jease of floods of oil from their natural reservoirs in the earth, followed by an immediate crumbling of the price struc- ture. — CHICAGO DAIRY MARKET. CHICAGO, September 17 (#).—But- ter, 4,500 pounds, steady, prices un- changed; eggs, 7,867 cases, steady; extra firsts, 26';; fresh graded firsts, 25%; fresh current receipts, 23a24';; ordi- nary eurrent receipts, 18a21. who will be 247 Park Avenue PHILADELPHIA RICHMOND September 17, 1930 BALTIMORE We announce the opening of a BALTIMORE OFFICE TWENTY-EIGHTH FLOOR BaLTiMore TrusT BurLpiNg Telephone Plaza 8300 under the management of Mr. Gough W. Thompson assisted by Mr. F. Nelson Bolton to render a complete investment and brokerage service G. M.-P. MURPHY & Co. MEMBERS NEW YORK STOCK EXCHANGE 52 BROADWAY New York WASHINGTON D. C., WEDNESDAY, RAILROAD STOCKS HOLD RECENT GAIN Group Selling Higher in Rela- tion to Earnings Than in Ten Years. Special Dispatch to The Star. NEW YORK, September 17.—Railroad stocks are now selling higher in rela- ing the past decade, according to an analysis made by Moody's Investors Service. The shares of 24 railroad com- panies showed a recent average quota- tion which was 13 times indicated earn- ings for the 12 months ended July 31 and 15 times indicated earnings for the entire year 1930. the 24 railroad stocks were selling at 137 times 1929 earnings, while they #old as low as 7 times earnings in 1926 and as low as 8 times earnings in 1921. Moody’s considers that a sustained advance in the prices of railroad stocks cannot logically be expected in the near future, since the short-term outlook for tion to earnings than at any time dur- - At the peak of the 1929 bull market |’ SEPTEMBER 17, 1930. ing. It is pointed out that the percent- age decline in August carlos was greater than in any previous mo year and that “current prices in rela- tion to current earnings are rather high. Since some uncertainty regard- ing the railroad stocks may be created in the public mind by the fact that certain companies will not earn their dividends this year * * * we do not be- lieve that an interest in railroad stocks will result very profitably in the next six months.” Indicated 1930 earnings, as compared to recent prices, are given as follows: Atchison S22 's:‘s'gfisss-;. 3 02 o cn g0 e o 3 | Hinois Central Lehigh Valley Louisville & Nt Central_ . Nickel Plate 32333! £ | Spananatie 323333333 Southern’ 111101 Southern Pacific Union Pacific Average —_—_— BANK CLEARINGS. NEW YORK, September 17 ( this | 000, Substantial Sums A're avaflaBle to s to loan on Real Estate in the Dis- triet of Columbia and near by Maryland and Virginia. As Mortgage Loan Cor respondent of the Metro- politan Life Insurance Com-’ pany we are always ready to serve yon. N. Y. Centra! R.R. Co. Pennsylvania R.R. Co. Southern Pacifie Co. Union Pacific R.R. Co. Oils Royal Duteh Com, Rew Tork Shares) Standard of California Standard Ol Company New Jersey) Stan, rd_Ofl Company of New York Texas Corporation Industrials ) deXemours & Copany Eastman Kodak Co. of New Jersey General Electrie Co. Ingersoll-Rand Co. Nattonal Biscuit Co. United Fruit Company . 8. Steel Utilities Ameriean Te'. & Tel. Co. Cons. 0. of N. Western Ol Company | Otis Elevator Company | | Woolworth . W. Co. | earnings is not particularly encourag- —New York bank clearings, Intelligent Diversification While most of us agree to the possi- bilities in high grade common stocks few are qualified to select that small group which will show the greatest returns over the next several years. The holder of NORTH AMERI- CAN TRUST SHARES is pro- tected in this respect as his invest- ment represents an undivided in- terest in twenty-eight major cor- porations, the common stocks of which are listed on the New York Stock Exchange, and all of which have paid dividends continuously for 14 years or more. Thrsugh the law of averages he will benefit from the progress made by this group of twenty-eight out- standing ycompanies. This investment combines safety, yield and marketability with pros- pective capital growth. Circular on request W. W. LANAHAN & Co. BANKERS WASHINGTON OFFICE: HILL BUILDING EDWIN D. FLATHER, MANAGER PHONE NATIONAL 6997 Members New York & Baltimore Stock Exchanges Associate Member New York Curb Exchange Consulr JEAVER. 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