Evening Star Newspaper, November 16, 1930, Page 79

< i LANSTON IS HIGHER News of Markets Pages 1 to 5 Part 6—12 Pages ON D. C. EXCHANGE AT CLOSE OF WEEK Capital Traction at 50 Saturday Trading—Other Local Issues Steady. EXCHANGE HOLDS ANNUAL MEETING ON WEDNESDAY Union Insurance Company Cele- brates Sixth Anniversary—Sound * . Growth Reported. BY EDWARD C. STONE. Local securities were steady in final the Washing- Monotye, which Friday at lnoh. advanced yesterday to 104, scoring a points. ’hlcfiun wound up the week lt M |.n light trading, following the October financial state- mt, which lhfl'ed an upward trend nmlnn for the third consecutive month. Potomac Electric Power 51 per cent preferred came out at 108%, 50 ah!ru of Columbia Tile & Insurance Co. stocl sold at 82 and 10 shares of Pedenl- Amrlcln Co. common changed han !ond.i were largely neglected, $1,000 ‘Washington Gas Light 6s, series A, sell- ing at 1023, while twousl.ooo sales in on, presi- O. Wi Liberty National Bank, has of the exchange. Insurance Firm Notes Birthday. ‘The Union Co-operative Insurance ‘Association, "Mmm few hg!emluu;; ance compani corporal District, having its home officz at 1200 street northwest, celebrated Jast week the sixth aniversary of its incorporation. p ‘The | importan |Revision of Taxes On Capital Gains May Be Proposed Change in Law Might Act as Curb on Stock Speculation. N | special Dispateh to The Star. NEW YORK, November 15.—Wall Street was much interested today in the statement of President Hoover that the Treasury might show a slight def- fcit for the fiscal year ending June 30, and also in the position taken by lead- ers in Congress against continuing the reduction in normal taxes which is now in_effect. It has been recognized for some time that a probable shrinkage in income tax payments by individuals and by corpo- rations would undoubtedly lead to an upward revision in tax schedules. Own- ers of securities have been taking every possible loss. This has had an impor- tant effect in depressing the stock mai ket the past two months. In addition, corporations have been going over their accounts in order to show losses where possible, aside from those which will be reflected in their income tax payments from a decrease in their gross earn- ‘The monthly statements of the rail- roads have given clear proof of the re- duction in taxes by the carriers in a period which has witnessed a shrink- age in their gross revenues of nearly 30 per cent. Agitation for a change in the law re- Jating to capital gains and losses has been increasing. fon of the stat- utes covering this phase of taxation is expected to be proposed in the coming session of Congress, Last year the head of one of the large New York banking institutions came mn strongly for such a change and stated that had this law been annulled a t many holders of securities on which large profits had accrued would have sold them and b iped to balance the ab- normal speculation for a rise. (Conyright. 1930.) 5 INDUSTRIAL PEACE IS AIDING RECOVERY & Nation’s Strike Level Lowest During Any Depression in History of U. S. Special Dispatch to The Star. CHICAGO, November 15.—For the flm time in history, the United States is practically free of severe industrial strife during a period of business de- , according to the Standard American tion of Chicago, which has completed & study of industrial tions. Statistics compiled in this survey -howed the Nation’s strike level at the lowest point in history and a complete absence of the menace of serious indus- trh.l conflict whlch has usually marked the recurring business depressions of the last. cen tury. ‘Absence of industrial disputes at this time,” the survey said, “has un- - | doubtedly strengthened our industrial and social structure, and should be an t factor in increasing the P> ‘economic -re- sibllity of a more rapid 1ds. covery.” Up to October 1, the survey showed a total of 444 industrial disputes this year, compared with 740 in the Iast year—a decmu of 40 o cent. ‘There was 70,000 fewer men mvo)ved this ywl dlm\l than in 1929, which was the bumzr year in the absence of industrial meonnectbnwlmlnm the cor- ve porltion developed interesting 8 £ figures the course of indusirial dis- 'a luring the last 15 years, which that time has resulted in 31,127 strikes and lockouts, involving 16,458,- 000 men. “Analysis of these figures, compil from Government and private sources, said the survey, "revu.lzd that since test strike year in the country, rel between and labor have continued to im- prove until today the continuity of pro- duction is being disturbed by relatively g‘:lhll‘!‘dm disputes. Since 1921— mofl rapid and “In recent years the number of work- ers involved in industrial disputes has ranged from 200,000 to 400,000, which is relatively small when com; with the period prior to 1923, when the num- ber of strikers ranged from 1,000,000 to 4,000,000 annually. In the unpnrel\eled strike year of 1'19 more than 4,160,000 persons were involved in labor conflicts, which swept the iron and steel, mining, lhlpp‘n(, ilding and railroad indus- Strike Statistics 1915-1930. The following table shows the figures for strikes and lockouts and the num- ber of men involved through the entire perlod from 1915 to 1930: Total No. No. of persons involved !wdy of smm.\u u! the l'uulu of the strikes in the last 15 years shows that labor and employers have about broken even. Labor won about 34 per cent of all disputes and the employers the remainder were BELL SYSTEM BOOMS AS INDUSTRY DRAGS Special Dispatch to The Star. NEW YORK, lf.ovltr 15—~The industry is once dem- its vigor and .M.ll‘l‘y to with- 1 adversity. There can hnmsflar hich there T, Wi munwewdluw FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C., 'TRADE MARKS TIME IN FOREIGN FIELD, BUTTONE IS FIRM Business Has Apparently Re- covered From Alarms of Recent Past. BRITISH TARIFF POLICY REMAINS UNDETERMINED Bank Failures in France Prove Unsettling Factor in Con- tinental Situation. Special Dispatch to The Star. NEW YORK, November 15.—Cable dispatches to the Business Week give the following survey of business abroad for the week ended November 15: Europe.—Business has entered an- other lull following the recovery from the alarms which featured September and October, but any fresh forward im- pulse is lacking. The Imperial Confer- ence has closed without any accom- plishment, leaving the question of fu- ture British tariff policy and trade rel tions with the dominions indeterminate. The Ge! arbitral wage award provides for a 3 per cent wage cut in December, but defers the real cut of another .5 per cent till January. There is wide satisfaction at the signal defeat of the Fascist extremists in the recent Austrian elections, but otherwise the elections failed to improve the previous incoherent political structure, which has been res] for the lack of positive economic administration in this small, but geographically key country. Spanish Gold Credit. Spain is establishing a gold credit in l:andon and preparing a similar credit th the International Bank as a part of the new currency stabilization pro- m. The is thly approved, ut arouses little enthusiasm since most financial authorities think the move should have been made long uo and the recent dhzumu effects of peseta & decline securities on all markets. With the ar- Topeans ate Saking septcatly if Amerl ans are as ically eri- nn capital will rush in where European ear to tread. These “mme connected with the organization in the United States of a super-institution for foreign credit. Meanwhile, raw material prices, with certain wnaplmlmn exce] appears unobtrusively to be e British Trade Irregular. London—Business remains indeter- minate with spasmodic jumps and re- cessions in various commodities but wmifl‘-x imbued with a feeling that the slump has touched bottom and that an upturn is due in the Spring. Politics continues to overshadow bus- Iness. The Imperial Conference is end- ing in a failure. No effect has been given to the policy of dominion preference and the ernment has been dam- that dependency and whether there is to be a unified India or a confederation of Indian states. All parties are pledged to further seif-government by one means or another. Business is not optimistic that these deliberations will lead to bet- ter trade relationships during this gen- eration. French Bank Failures. Paris—Business has been considerably disturbed by the epidemic of bank fail- ures, but the difficulites now seem to be under control and the episode prob- ably will be closed soon unless further ing ago has been followed by the cl of three provincial institutions -m are fears that even the ue d'Alsace Lorraine may be obliged to close. These Emmmlu “l‘re the Hr:-ult of the w‘l‘- pse of the Oustric credit pyram which has been dzveloped w inflate security values. Apart from the troubles ari the financial difficulties which strongly influenced business this week, the tone is featureless. Industrial indices, now available for September, show further reductions of activity. SIGNS OF RECOVERY IN STEEL ARE SEEN Increase in Buying of Metal Is Ex- pected After Turn of Year, from Special Dispatch to The Star. PITTSBURGH, November 18. -—m- ports from Chicago are to the effect will district ey that steel sellers in that are convinced that the turn in buying was rounded several weeks ago, one seller observing that at the turning point de- mand was very low indeed. The district is influenced by the fact that reléases for the rolling of rails are in prospect, that some freight car in- &lrv is appearing, and that thus far e farm implement factories have done little toward starting their Winter manufacturing program, so that they have their future before them. At the same time steel mill operations in the district are reported down l yolnh. from 50 per cent to 45 per ce: Cleveland, a relatively mlll has advanced from 20 per cent to 32 per cent. The Youngstown district is down to 40 per cent, while the Pitts- burgh district has sl pped just a trifie, cent, ln('-heneelmdultryun'hnu the ingot-producing rate is about 43 to 44 per cent of capacity. The rate at the close of August was about 58 per cent. Thus tonnage has decreased by one-fourth in 11 weeks. A oonunlllm this proportionate decrease would m-xe-numw ybn'unlb per cent at the close of the should be an all precedent. (Copyright. 1930.) PEERLESS ON FULL TIME; ADDS 500 EMPLOYES l Busmess News AI]VAN[:E IN STUGK Retrospect Stocks Listed on the Wash- ington Exchange Have Made a Creditable Show- ing During the Long Period of Price Deflations—Signs of Recovery Are Seen. BY I A. FLEMING. When they rap at the front door, ring the bell or call on the telephone and urge you to transfer your holdings in some security listed on the Washington Stock Exchange for something “with much better pros- pects” and not list- ed anywhere, it will be to your a vantage to turn cold shoulder to all their propositions and hold on to what you have rather than trade with probable chances of being utterly worthless. Stocks on the Washington Stock Exchange, with the exception of Capi- tal Traction, have given a much better account of themselves during the last year, relatively, than those on the New York Exchange. In Zact comparison in this case 1s enormously favorable to ‘Washington, although, of course, the trading list here is but a fraction of the srem. number listed in Wall Street. is very fact has brought to this city scores of salesmen of varied degrees of ability who are busy night and day trying to undermine the confidence of holders of local shares in their holdings, and, by painting a pretty picture of "wmething else with prospects,” work- ing for an exchange. Capltal Traction Suffers. In the case of the Capital Traction lhmholdm these gentry have been very successful, being aided by the persistent refusal of the Utilities Com- mission to sanction higher fares, merger, etc,, and largely by the situation in the taxicab business of the city. Capital Traction, one of the oldest corporations in the city, for years con- sidered one of the assured money- makers, has been the victim of this cormMmuon of circumstances, gradual- ly growing worse until it was necessary L A. Fleming. LIST HAS REACHED IMPRESSIVE STAGE Bottom of Market Now Be- lieved to Have Been Touch- ed Last Wednesday. BOOST IN COPPER PRICE WAS SIGNAL FOR UPTURN |zess ™ Brisk Gains in Many Groups Fol- lowed Rise of Metal Shares. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, November 15.—Holders «f securities can today scan the week end tables of quotations with more sat- isfaction than for many months. The week has brought out constsuctive tendencies in the stock market and in business of greater promise than any witnessed so far this year. It now seems probable that the low roint in industry was reached in Oc-|of tober and that the bottom for stocks was touched last Wednesday in the low- est composite price since the first half of 1927. Coincidentally, we had wheat and other grains quoted on a basis sim- ilar to those in the hard times 30 years g0, ‘The business index, having fallen 27 per cent between May, 1929, and lm month, was 2 points lower than minimum figure in 1921. Agricultural products were not only lower as a class than many of the present generation of producers had seen them, but other staples were at a historic low. Yields Tempt Investors. ‘To further strengthen the technical position of securities and commodities, we had the former this week deflated to a point where income return gave the grednun uayu':.xl‘on lfi lm investor and speculator since 5 The market on Wi touched an average lower than in the m cut the dividend before the fight tor s higher fares was won. For a long time the company paid part of its annual dividend out of a handsome surplus, but recently aban- doned that policy and the price steadily declined from par and better until 497 5 and 50 a share was reached. Brokers belleve that a llr.n pl.rt of the loss in Capital Traction an; stock, mbondl nzubu.lln-n numdl'ua and a big of leen.y It would be interesting to know just what one has to offer in uchlnle for Mergy. Nothing so good, to a practical certainty. Happy at Going Home. Washington bankers are delighted with the decision of the Executive Com~ mittee naming Hot Springs, Va., as the location of the annual convention of the association for 1931, Since the association officially dis- covered Hot Springs and its leading ho- tel it has gone there again and aga was S0 eonv-n.lrnl. pluunt and satisfactory that there were no complaints. Then the organization was lured away to the northern tip of Long Island, “twict,” as the radio announcer calls it, and last year the urge for a change took them lo Asheville, N. C., even after they had decided on Hot Springs. Market Depressions. One tires of hearing “Don’t let that worry you, that will come back, Columbia Graphophone Co. ‘with hnvy loss to shareholders—a. cor- tion without bonds, yielding to the nm mm of the radio development ap- ly very easily. G(mdlflonl looked even worse in '61- '64, in "77, the long depressions of '93 and '95, the awful slump and closing of exchanges with moratoriums following the outbreak of the World War and just before Woodrow Wilson took office, to come back quickly in a boom when new billions of Federal securities were mar- keted. The periods of the buyers’ strike and the liquidation attending the sell- ing of enormous blocks of stocks, were all attended with ragged blue de- ‘They came back—and right now there's a lifl,h daylight breaking through the dismal clouds of the late 1929-'30 lumhess that really gives Dromlle of tter conditions. And there is much room for improvement. ‘The various movements of a helpful xl.nd are fruit and in the end will make for a substantial recovery. Some $650,000,000 in Christmas sav- soon be distributed. Some one estimated that one-third of this lule amount will find its way into mer- chandise of various kinds, but the ex~ perience in this city is from 75 to 80 per cent going that way. Well Distributed. Y. E. Booker & Co. secured an excel- lent distribution of the Columbia Golf Club 5% P" cent bond issue, alloting the bonds to 57 different purchasers. Moreover, the successful sale of the issue did not require much publicity, a prosé ! pectus and some paper mention the sample of this class, slipping out lll inine months ended sale. ‘Undertaking the floating of the bonds at this time required assurances, even h the security was ample, over a million dollars of assets and the prop- erty being such that it will not de- teriorate between now and the maturity of the issue December 1, 1050 Jrachintiun 3. WAGES ON INCREASE AS COMMODITIES DROP ln te of a decline of 30.4 cent - mdumz 3 shiea il g2 g r producers raised the The mmood 'of the market, whue deep surface been changing steadily because of t.he conspicuous values offered, not alone for uc‘:fldue;l but for wmmodlwuu.n re- qui only some concrete confidence to let a nln.\ilht through the clouds that M hung onr the country for so many months. fact that other commodity nmuou were in process of correction and that distre market and credit l!wn.lms were also being relieved gave further encouragement. Another constructive development has to do with the Eastern raflroad plan. ‘This has been informally cussed for two weeks by the executives of the trunk line carriers, who, for the first time since 1928, have been sitf around the table with a new spirit of friendliness toward each other, to work out an arrangement that will strengthen transporation conditions in their territory. d tty annoyances by Ww! f: upset in & prolonged Of all of the countries in the world, the United States should show the first and most vigorous recovery. of its economic problems, it has not the handicap of a political division or the constant fear of war that weighs down 80 hard on all of the nations of Europe. 'l'he rest of the world, and particu- Lrumpe. will improve as the United mven its nerve and again a buyer. There are funda- mm changes, however, that must be made in Europe before its economic health is restored. It is it leadership from the United States is called fur and seems to be developing. with the prospect that nm mr wlu witness conferences as those that produced the Dl“ in 1924 and the Young plan in )’929 (Copyright, 1930.) RUUD EARNINGS GAIN IN NINE-MONTH PERIOD Special Dispatch to The Star. NEW_ YORK, November 15.—The Ruud Manufacturing Co., makers of automaic gas water heaters, for the September 31, nso fipom net earnings of $279,099 aftes charges, including depreciation -.nd Federal taxes. This is equivalent to $2.25 per share on the company’s out- standing common stock, or well in ex- cess for dividend requirements of $1.95 for the period. Net nrnmn lax the first nine months of last msua. or equivalent to ‘!!1 vzl' Record-Breaking Earnings Reported By First National Special Dispatch to The Star. NEW YORK, November -15—Based 5§ §8, 2R E5F aggifi SUNDAY MORNING, NOVEMBER 16, 1930. Trade Trend Classified Ads Pages S to 12 and Outlook President of Broadcnn'n.g Company Declares Busi- ness Will Pick Up When Lack of Confidence Is Supplemented by Optimistic Attitude on Part of Public. BY M. H. AYLESWORTH. President, National Broadcasting Co. ‘told to J. V. Pits Gerald. Fear and lack nl eonfldem:e are xu&‘m responsible for the present v:ond! g business in 0 ple mre 'l\'-gBo !mhm there will wmlhzlltuluon It will be de- cidedly for the better and under it busi- will plck up all along the line, with ecrease in unemployment. The -mmae of New York, I believe, is to blame, to a great extent, for the bad mental outlook on business in many sections the country. Leaders in different Hnel go to the lis on business. There is some depression m their own communities, but they are not particularly worried about it. As wlde-lwnke executives they are on their toes, selling harder than ever and find- ing ways and means to show a profit. Talk of Hard Times. They are optimistic when they arrive in New York. But once they have been there a few days their attitude changes. mr talk of hard times and pre- of still worse to come in many cases. Naturally this affects them. “ changes their attitude and they return: to their homes with confidence gone. In its place is a dangerous mental state fear. is communicates iteslf to ‘others. It is an endless chain sort of a thing—or has been for some months now. New York is so close to Wall Street and the money market that it is only natural that many men there should have viewed the situation with more alarm than executives in other sections of the country. They haven't been in the | & place from which to obtain the best ve, . t we need now, more than any-| thing, is courage and confidence in what thet future holds for business. M. H. AYLESWORTH. seems to have about run its course. agree with the economists who hnld that the worst of the hard times are about over and that we are now moving on a horizontal line in busines before getting started on the upward climb. Just how soon we can expect a return to normal times is hard to say. they will be back with us and that soon- than many En a few weeks ago t.h're were indications that advertising appropriations for lflll might be reduced, many industries ha: announced that they more money in to some ,000,000, will be made avail- able within the next few 'eeh of cout this money will not be spent (Continued on Fifth Page.) BOSTON MERCHANT SEES RECOVERY N NATION'S BUSINESS Edward A. Filene Predicts Maintenance of Present Wage Levels in U. S. DECLARES LOW PRICES NO MENACE TO WORKERS Drop in Costs of Goods Is Spur to Increase in Con- sumption. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YOR.K. November lS.—m asked Edward A. Filene, swayed by the temporary storms in the business wofld,hml.lnylmhmlnd the future tren 7 But | thi will actually lvend e OPPORTUNITY THE great corporations of this country have been built up to their present size and high state of efficiency by ine telligence and intense concentration on problems affecting the various lines in which the corporation specializes. Members NEW YORK AND BALTIMORE STOCK EXCHANGES Associate Member NEW YORK CURB EXCHANGE The present market offers many un- usual opportunities to obtain stocks of our best corporations on a fair divi- dend yield basis. We have prepared & list of stocks divided into three groups, according to investment merit. Mdckubin, Goodrich & Co. ESTABLISHED 1899 BANKERS Members New York and Baltimore Stock Exchanges Associate Member New York Curb Exchange WASHINGTON, D. C. 1508 H STREET . BALTIMORE, MD. OPEN UNTIL 5:30 P.M. MONDAY, NOVEMBER 17th The Maximum in Service and Security QThe Metropolitan has survived the financial vicissitudes of over a century, gaining steadily in prestige and power, ever widening its usefulness, making new friends, and, what’s better, keeping the old. QWhether your needs are extensive or are encom- passed by a savings or modest checking account, this veteran bank will be pleased to serve you. One dollar or more is all that’s needed to become a SAVINGS DEPT. patron National Metropolitan Bank Capital, Surplus & Undivided Profiu Over $2,30,000.00 3% on Savings