Evening Star Newspaper, November 30, 1930, Page 77

News of Markets Pages 1to § Part 6—12 Pages NATIONAL, CAPITAL REPORTS BIG; DROP IN BANK CLEARINGS November Total $102,030,- 387, Against $120,261,737 in Same Month in 1929. COMMITTEEMEN NAMED FOR BANKERS’ PARLEY Potomac Electric Issue Most Active Stock in Week End Trading on D. C. Exchange. Bank clearings in the National Cap- {tal in November totaled $102,030,387.27 in comparison with $120,261,737.69 in November 1920, according to the monthly report of the Washington Clearing House Association, available at the close of business yesterday. This is a decline of $18,231,350.42. Clearings in Washington in October amounted to $118,08491534. Total clearings for the first 11 months of the present year stand at $1,200,034,523.91, against $1,365,316,098.74 in sponding period in 1929. Clearings for the same 11 months in 1928 totaled $1,305744,189.67, and the corre- clearings in December ed to $116,074,630.10, which makes it easy to estimate about what the total figure for 1930 will be. ‘While retail trade in Washington at present is better than it was a year ago at this time, according to reports from the Federal Reserve Board, the total business being transacted here is lower. This is '.rule in "?rxuu\ly :vuy other important city e country. Following is a compilation of bank 134,028.347 113,553,519 . .$1,200, $1,365,316.008 Tfimmwmbe’r"flwm:no( the best months in the year for business, the slump in clearings is certain to be con- siderably reduced when the final 1930 figures are compared with the 1929 Tecords. . D> Cox to Handle Transportation. Prederick H. Cox, cashier of the Com- mercial National Bank, was appointed y by General Chairman F. . Siddons to be chairman of the Trans- portation Committee for the 1931 bank- ers’ convention. Mr. Cox was born in Fauquier County, Va., attended the public schools in his home town, graduated from the Manassas High School, and studied at the University of Virginia. He is a graduate of Washington Chapter, Ameri- can Institute of 3 3 His activities in the District Bankers’ Association have been many. He is at it f the safe deposit section, has been a member of the audi- et o veas, Datore an of the Committee on Underwriters’ Association. Mr. Cox has also done considerable work for previous conventions. In 1927 he served on the Press Committee, in 1928 was vice chairman of the Sports Committee, chairman of that commit- tee in 1929, and member of the Enter- tainment Committee in 1930. Hillyer Made Vice Chairman. It was also announced yesterday that Edward L. Hillyer, vice president and assistant trust officer of the Union Co., has been appointed vice chairman of the ition Com- mittee. He was & member of the asso- cation’s Publicity Committee in 1926- 27, Fdaudulent Securities Committee in 1927-28, chairman Auditors’ Section Commitee in 1928-29, also a member of the Fraudulent Securities and Pro- tective Committees the same year. In connection with conventions, Mr. Hillyer has served on the Sports, Hotel and rtation Committees. He is a native of Washington, holds a master’s degree from the National Law School and is & member of the District of Columbia Bar. He has been with the trust company since it opened in 1900, is vice president of the Washing- ton Stock Exchange and & member of the Chevy Chase Club. Local Securities More Active. Saturday trading on the Washington Stock Exchange was more active than usual. Potomac Electric Power 515 per cent preferred was the most active is- sue. The day’s sales: Georgetown Gas 5s—8$1,000 at 103. 1 Potomac Electric cons. 56—$1,000 at 03. Washington Gas 6s A—$1,000 at 103. ‘Washington Railway & Electric $1,000 at 8715, $500 at 87%. Capital Traction Co.—10 at 49%, 10 at 49%s, 15 at 40, 10 at 49. l;o!l:l‘nllfi Electric 6 per cent preferred —5 a z Potomac Electric 5% per cent pre- lerred—60 at 107, 10 at 107, 10 at 10’ 10 at 107, 10 at 107, 10 at 107. ”mu, -American Co. common—10 at “;.'uwu Monotype—30 at 105, 10 at “P':gplu Drug Stores preferred—10 Washington Gas 6 “B"—8$1,000 at 105. Potomac Electric 514 per cent pxe-l ferred—5 at 107, 5 at 107. Bankers Visit Baltimore. bowlers, board of . | the annual meetings portant - | United States so - | have 92 050 in the P.| being an athlete over 6 feet FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C, He’s 80 Years Old 1. A. FLEMING, Financial writer for more than six decades, who has reached another mik stone in a most unusual career. He still contributes weekly articles on finance to The Star. FLEMING OBSERVES HIS 80TH BIRTHDAY “Pop” Is Well Known and Affectionately Regarded in Financial Circles. BY EDWARD C. STONE. 1. A. Fleming, former financial editor of The Star and probably the oldest writer on finance in the United States, ‘was 80 years old yesterday. In honor of the unusual event he has invited his newspaper and banker friends to a reception at his home, 2700 Connecticut avenue, from 5 to 7 this evening. Mr. Fleming has had a most re- . | markable career as & newspaper man, having been an active journalist for more than 60 years. Born in Chicago on November 29, 1850, he lived there for 53 years, and for 30 years stood nt rank of Chicago's finan- cial writers. “Pop,” as he is addressed by his close friends, was only 15 years of age when he began his career of preparing newspaper copy, handling grain quotations on what is now the Chicago Board of Trade. His ability and energy rapidly asserted themselves, and his inside knowledge of the intri- cate workings of the grain and stock markets soon brought him into promi- nence. Once Star Athlete. yot days “Pop” was very fond of sports and in the '70s was & star base ball and foot ball us)lnyer, 1 and wel g 197 pounds. He was a = wn‘fl friend of “Pop” Anson and “Billy Sunday and other diamond Kings of many years ago, his semi-professional club often coming in contact with the professionals. He played against Anson, and Charles Comiskey played on a team which Mr. Fleming managed, the Liberties. Not to this day has he lost his interest in the fortunes of the two Chicago major league clubs, although his allegiance has naturally been trans- ferred to the Washington Senators. ™ In the light of the recent popularity of night foot ball, it is interesting to te . Pl jana and Wisconsin Universities, the :nme being played for the benefit of the two colleges. During his long career in newspaper work in Chicago, Mr. Fleming made many friends among the captains of finance and obtained scores of news stories ahead of other less alert finan- cial writers. In those days the elder Armour and Marshall Fleld were at the height of their fame. Probably the most memorable “news beat” Mr. Flem- ever secured was the first story to public attention the famous Leiter $10,000,000 ogne: in :hfl!‘gg or more years ago. News regarding “sorner”” followed some of the most sensational trading sessions ever wit- nessed on the Chicago Grain Exchange, aend Mr. Fleming’s information about it was flashed to lfl parts of the world. Obtained Other “News Beats.” The sensational speculation of the Moore brothers was another famous story which Mr. Fleming covered alone for the Chicago Journal. W. H. and T. H. Moore were corporation lawyers and started a bull movement in Dia- mond Match and New York Biscuit. It was in 1896. Match was pushed up to 225 a share and Biscuit to 180 and 200. Trading became so wild that the Chi- cago Stock Exchange was closed until settlements could be made which pre- vented the fall of many financial houses. In the final adjustments it was reported in Chicago at the time that the sponsors of the stocks had lost $15,- 000,000, a very large sum in those days. Leaving Chicago, Mr. Fleming became editor of the Minneapolis Times. The paper was suddenly bought by another paper and Mr. Fleming next found him- self writing for a syndicate of trade papers. Coming to Washington he rep- resented for a time 28 of these papers. 45— | After he had become well established here, his former employer in Chicago happened to come here, They met one day, unexpectedly, on Pennsylvania avenue, with the result that the finan- cial writer joined the Washington ‘Times staff. Guest at Seven Conventions. Asked to take the financial editorship of The Star when he was 63 years old, Mr. Fleming considered the offer the greatest tribute of his career and went to work on the paper on December 21, 1913. fleld some years ago he has kept in the harness by writing Sunday feature articles on finance. Mr. Fleming has always had the interests of the Dis- trict Bankers’ Assoclation at heart and has been a guest of the organization at the last seven donventions. He has attended every out-of-town convention ever held the assoclation, with one ‘While in Chicago Mr. Fleming always represented the late C. W. Barron, owner of the Wall Street Journal, of many big corporations. Mr. Barron held at least onetlhflv of l:ock in lmhnnio! & mos corporations in that he might alwa a representative present to ob- tain first hand all the annual reports. meetings were suddenly adjourned when the officlals wete presented with from C. W. Barron, which representative in person, Cast First Vote for Grant. Sfastaprres Since retiring from the dally|pineq STOCKS DEPRESSED BY SHORT SELLERS DURING LAST WEEK Market Gives Evidence of Being Thoroughly Liqui- dated—Averages Firm. RAIL LIST BEARS BRUNT OF PROFESSIONAL ATTACK Bank Situation Improves and| Alarm Over Grain Values Has Subsided. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, November 29.—It is easy to become impatient over the slow progress being made in business and market conditions and to be apprehen- sive when, as this week, stocks resume their downward trend. That we are gradually coming up out of the valley of depression is, however, a fact supported by evidence in several directions. To illustrate: Copper metal was ad- vanced to 12 cents a pound after de- clining 50 per cent. to 1014 cents, but it holds steadily a cent a pound over the low of October. For nearly six weeks the price of iron and steel manufactured products has been maintained at a fixed basis, al- though the output of the industry has declined until it is now 41 per cent of capacity. The textile trade has consolidated its gains and is in a relatively good posi- tion after two years of distress. The latest figures of earnings of the public utilities indicate a small increase in gross and net over the first nine months of 1929. Only half the dividend cuts reported for October have been announced for November, with none this month as significant as those com- pelled in the earlier period. And, in spite of the secondary reaction in securi- ties now taking place, the New York Stock Exchange figures for November will show a more satisfactory plane of valuations than those of the two previ- ous months. Bank Situation Improves. Last week the Eastern banking com- munity was disturbed by the epidemic of failures in Tennessee, Kentucky, North Carolina, Missouri, Indiana and Hlinois. Some of the institutions #hat closed have been reopened. A few new but unimportant suspensions have oc. curred. A situation in New York that had been giving considerable anxiety has been adjusted through the efforts of the New York Clearing House As- sociation. There has been absence of the alarms that ran through the grain trades of the United States and Canada a fortnight ago. Some progress has been made in stabilizing the ofl in- dustry, though this is far from being in a healthy state. Merchants who have been praying for cold weather, as the farmers last August petitioned for rain, now have it. It is a augury for holiday trade. has been more wild toriums and debt cancellations, but, in a quiet way, conversations have been going on whose importance in inter- national finance will be disclosed later. Record Dividend Payments. The dividend and interest payments be made on Monday ex those of the same &enod in other years. It is the rule, rather than the excep- tion, to find an industrial company whose current statement shows a smaller inventory than last November. Frequently it has a higher proportion of cash and marketable securities than during its most prosperous days. As a whole the stock market has been well liquidated. The pressure | against it in this short business week | has been from the professional trader and not from the investor. The for. mer “laid off” for awhile from his regular occupation of abusing values and gave the Street an opportunity to regain part of its courage. With aver- e prices recovering about 20 per cent om m:m Bep"umbtr-Noveldnrberm he and vestment purchases dropping, he has resumed his activity and u'-a Tumor :nlenfi‘: again grinding out false state- Rall Shares Heavily Sold. The point of least resistance in this week’s market has been in railroad shares. Each month witnesses a spasm of selling of rails as gross and net revenues reveal heavy losses, compared with one and two years ago. The Octo- ber returns are poorer than anticipated. In spite of this great decline in net, a large proportion of the carriers are earning their dividends. Few contem- plate any change in their payments to shareholders in the next six months. Only two important railroad dividends have been affected in a year, when over 900 corporation dividends have been reduced or passed. And they are balanced by increased dividends. In the sporting parlance of the sea- son, the railroads are now down on the five-yard line. Their executives have gone “into & huddle.” They have their backs up. They have plenty of re- serve strength, but good generalship, some substitutions in the line-up and teamwork are necessary if they are to win out in the present crisis. (Copyright. 1930.) e o CHILDS SECURITIES CONCERNS CONSOLIDATE It has fallen_ back | PerA Special Dispatch to The Star. NEW YORK, November 29.—Effec- tive December 1, C. F. Childs & Co., distributors of United States Govern- ment securities, and Childs Securities Corporation have peen consolidated un. der the name of C. F. Childs & Co. C. F. Childs, president of the com- organizations, organized C. F. Childs & Co. in 1905 and with the ex- ception of two and one-half years' period ending October 10 last, the busi- ness has always been under Mr, Childs’ | management. term in the White House. He also stood out in a cold November rain for many hours to get a chance to vote for James G. Blaine. A charter member of the National Press Club in this city, he is also a mem- ber of The Evening Star Club and a SUNDAY MORN y NOVEMBER 30, 1930. Classified Adsl Pages 5 to 12 Trade Trend Henry Ford and Outlook Believes Business Depression Will Be Lifted W hen Basic Commodities Are Obtain- able at Greatly Reduced Prices. BY HENRY FORD, As Told to A. M. Smith, Special Dispatch to The Star. DETROIT, November 29.—We will know when we have hit the bottom of the business depression by the fact that living expenses will become lower than this generation has ever seen them, in the opinion of Henry Ford. “That,” sald Mr. Ford, “is going to be one of the permanent gains of this period the United States is passing through—the necessities of life will never cost 8o much again. “You will know that the depression has begun to lift when you see food and clothing, fuel and housing plentifully and easily obtainable at greatly re- duced prices. Nothing except high prices of basic commodities is pro- longing the depression.” Mr. Ford sald he would not discuss the present situation if he were expect- gd':) indulge in the evasion of hard acts. Defines Prosperity. “Smooth words butter no parsnips,” he said, “and the sooner we begin call- ing a spade a spade the better. Pros- serity in the United States is nothing more nor less than the passing of goods from person to person. Prosperity is not in Treasury balances or bank bal- ances, but in the steady and full ex- change of goods. Anything that hinders this destroys prosperity. Anything that restores such exchange restores pros- ty. “Prosperity does not even consist in the profit which industry makes. If industry operated without a cent of profit, and the full and steady flow of goods continued, we should still have prsperity. The only profit of work, after all, is life. That is what all our ?npenuom exist for—they keep life go- g “More people see this today than ever before,, and one immediate result is going be lower prices on all the necessities of life. There can be no great progress of any kind until the people are assured beyond anxiety of a low cost of livelihood. We cannot g0 on exploiting the necessities of life | tumblin, and expect any kind of advancement in the United States. Making a living should be the easiest thing we do. And the only high-priced commodity we have any right to is a day's work; that should never be low priced.” Mr. Ford was asked if he thought the tariff had anything to do with the de- layed return of prosperity. ‘As know,” he sald, “I was . I am essentially a free trader for the industry of the United States. We are all big enough to forego protection. If there are any business interests that wanted the tariff, all T can say is that they got it, but th:yoxwiil"l not get what they expected ou 3 Foreign Factories. “At the same time, the tariff has not been entirely without benefit. has helped other countries. When they United States they made i‘t‘ne& for American industry to emigrate and build factories behind the tariff walls and give employment to foreign work- men. That is going to prove a con- siderable factor in the prosperity of other countries. And we have got to take a wide view of these matters be- cause no country is prosperous to itself alone; all of us must prosper tegether, else none of us prospers very much. “I have a belief that when anything Is permitted to occur, on such a scale that it affects the life of the people, there is usually some good result lurk- ing in it, if you can find it. “The tal in the United States en- ables the food and clothing and’ fuel and housing exploiters to keep their prices a little higher a little longer, but at the same time it creates conditions which will inevitably bring those prices g down. Calls Depression Unnecessary. “Those people who wanted the tariff thought they were doing something in their own interests; it will turn out that unintentionally they were starting forces that will work y in the interests of the people, they thought to exploit. “It is too bad that our good results must come by such indirect and costly means, but they come; there is no stop- ping_them. “This depression was entirely un- necessary; but as long as you had a population believing that they could get something for nothing, it was inevitable. Yet its value in clarifying the public mind is too great to measure. “Unless our people are far less in- telligent than I credit them with being, they are through with false leaders, and that means that after this we shall be through with depressions for a loi time. What we are going to get out of this one is a lower-priced livel! and 8 larger family margin for investment in permanent things.” (Copyright, 1930, by North American News- paper Alliance.) DROP IN MARYLAND CROPS IS REPORTED Peas, Corn and Tomatoes Off From 50 to 75 Per Cent, Says Survey. Special Dispatch to The Star. BALTIMORE, November 29.—Peas, corn and tomatoes, Maryland's chief crops for canning, are off from 50 to 75 per cent this year because of the drought, according to an incomplete survey just completed by F. M. Shook, executive .em&:, of the Tri-State Packers’ Association. The yield in peas, the crop hardest hit in the State, will be about 26.54 per cent of last year's crop, while that of corn and tomatoes is indicated to be 39.97 and 76 per cent, respectively, of the 1929 output, the report states. The association does not gather fig- ures on the string bean crop, as this work is done by the Census Bureau, which makes a report every two years. It is estimated, however, that the yield will be about 60 per cent of the 1929 harvest, Mr. Shook sald. The low yield of the State’s principal crops is not expected to be reflected to any extent in the res of the coun- try as a whole, and not perceptibly influence prices, it was declared. “The decrease in the tomato @rop would have been noticeable in the national yleld had it not been for the fact that the California crop was un- usually heavy,” Mr. Shook sald. The corn estimate was based on re- turns from about 90 per cent of the State canners, and that of the tomato cro{h:n returns from some 60 per cent of canners. Last vear 1,865,000 cases of 24 cans each of corn were packed, and the tomato pack was 4,050,160 cases. . In 1929, 1,469,000 cases of peas were packed, as against 399,918 cases this year, despite the fact that additional | acreage was planted in 1930, GRAIN MARKET CHICAGO, November 29 (#).—Grain prices turned upward today at the last, led by corn. Weather conditions over the corn oelt were unfavorable for the on hand meager. Besides, a drop of 4 cents a bushel in com- pared with the week’s high, was gen. erally looked upon as calling for re- adjustment. Corn closed strong, 1'4al1% a bushel higher than yesterday’s finish. Wheat closed irregular, ¥, off to % up, oats showing Ysa7 advance and provisions unchlnggd to a rise of 7 cents. WHEA’ igh. December, old. . g December; ne Kn life member of the Chicago Press Club, (° A brother, John, who lives in Chicago and is about 85 years of age, was for many years a business assoclate of the late Andrew Carnegie. law, Mrs. Russell S. Fleming, widow Fleming's wife died in 1914. Other relatives include a son, George, residing in Chicago. And as the years go by friends omh: both_spend the Florida Mr. Fleming | M makes his home with his daughter-in- mber, n March, old March, M OA’ of his oldest son, who died in 1916. Mr. | 5T - 4% Steel Produce~- Look for 1 .crease In January Trade Mills Expected to Step Up Schedules With Gain in Orders. Speclal Dispatch to The Star. PITTSBURGH, November 20.—Steel| producers quite generally appear to be of opinion that the recession in gen- eral business, after allowance for sea- sonal variations, has about run its course. In this they are more or less lllg- ported by the latest reports on freight car loadings and bank debits, although it is somewhat doubtful whether they study such statistics closely. As a matter of fact, the steel industry is one which furnishes material for a large BETTER SENTIMENT IN FOREIGN TRADE CIRGLES IS NOTED Greater Activity in Steel and Wool Demand Occurs During Week. CAPITAL MARKETS MOVE WITHIN NARROW RANGE Wage Problems Continue to Prove Dominant Factor in Euro- pean Countries. Special Dispatch to The Star. NEW YORK, November 29.—Cable dispatches to the Business “eek give the following survey of business .’ ~oad for the week ending November 29: Business conditions are without any recognizable trend for better or for worse. Sentiment is cheerful, though markets generally are listless, except for a distinct strengthening of wool de- mand and somewhat better activity in steel within the limits cl te: of current volumes. The statistical po- sition of wheat and the prospect for a carry-over are cause for some concern. The continued irregularity of copper is disturbing other metals, far, developments run true to predic- tions that the bottom has passed, but that activity will continue to be irregu- larly close to the bottom for at least the greater no_ apprec! Spring. rt of the Winter, with e rise expected fore Money Rates. Financial conditions are similarly unchanged. There is some tigh of money, due to day-by-day technical causes. It is forecasted that low rates will continue during the first '3 Stock markets are weak, and there is little confidence in Wall street im- provement. The Business Week’s Euro- pean organization has canvassed inter- national stock brokers in the principal countries on reports of European buy- ing in Wall street. It is the consensus that there is some buying at recent lows, and this is expected to be re- peated on new price dips; but, so far, ali these purchases have been charac- terized as small individual orders. The largest reported was $500,000. On the other hand, there has been an avid re- sponse, ‘especially in England, to gilt- edged issues, but to such issues only, | the f Conversion operations in England and France still hang fire, but will almost certainly precede any marked revival in capital markets, unless the plan is completely abandoned. Probably the direction of the next important movement of will be [Eastern Europe. capital toward ‘This ving various loans then for- mulated, but since placed on the shelf awalting favorable conditions. Without European ects, either of refinancing government debts or public works construction or of expansion of agricultural mortgage facilities. 1n only a few cases are in- dustrial developments awaiting these loans. It is likely that it will be some time, however, before lack of confidence is sufficlently overcome to permit money to respond to these economic n eeds. Meanwhile, the central banks are conferring with Basle on the possibili- ties of co-ordinating policies to permit better redistribution of gold, and estab- lishment at-Basle of a gold and foreign exchange clearing house to parmit book transfers. British Wage Situation. The immediate major issue in Great Britain continues to be the railway and coal wage questions. No progress has been made in the conferences this week mass of statistics and one which does [ cheered not study even its own statistics. Sometimes there is a condition in steel when it seems doubtful whether the existing rate of operation will con- tinue, there appearing to be a combi- nation of various classes of consuming activity coming together, any one or more of which may slip. Sometimes there is a condition when all consum- ing lines are doing so poorly that there seems to be no ice for anything but_an increase. The latter is the condition now, with the exception that there is a rather heavy movement of fabricated struc- tural material, order books of the fabri- cating shops being fairly well filled, while the season of year is no more than a small handicap. Everything else is very dull. Even line pipe has practically diappeared from the reck- oning, the season being over with cer- tain relatively small exceptions. Steel ingot production has passed below a 40 per cent rate, and the holiday this week was scarcely & factor, as it was not a regular steel mill holi- day. There may not be much further decline in December, except through some plants perhaps closing for the week containing Christmas. There will be an effort to run before that, to pro- vide Christmas pay rolls. January can scarcely fail to show an increase to 45 or 50 per cent, or even more. It has never been difficult for steel to show increasing demand in the first two or three months of a year. As to the price situation, it has been made reasonably clear that whatever may be n or asking prices in future, the steel to be shipped durin, the first quarter of the new year not net the mills more than prices now being quoted as the market. (Copyright, 1930.) MONTREAL BANK HAS $6,519,031 PROFITS Special Dispatch to The Star. MONTREAL, November 29.—Striking evidence of the soundness of underly- ing conditions in Canada is {hr:unfied by the strong statement which Bank of Montreal has forwarded to its stock- holders, covering operations for the fiscal year ended October 31. The profit and loss account shows profit of $6,519,- 031, as compared with §7,070,892 in the previous year. BOND INTEREST PAYMENT. NEW YORK, November 29 (#).—J. & W. Seligman & Co. and the National City Bank of New York, fiscal agents for the republic of Peru, have received m entire amount pl:quk;?‘ r%rmlnure:: December 1, llso,.x: Pmlvdun o loan bonds, first second series, the first serles, $200,000 have been for redemption on December 1. seasonal is known that improvement was less than elsewhere. In Germany, the Upper House has passed all but two minor measures on the Bruening fiscal reform program of 30 bills. The Reichstag will tackle the program when it reconvenes December 3. Meanwhile the price-reduction cam- paign continues. October indices showed a further, but less marked, decline in industrial activity, measured in terms of the number of workmen employed in mining, metallurgical chemical industries. Construction contracted. Wood, paper and textiles remained un- changed. Leather, leather products, footwear, paper products and porcelain advanced. Leather showed the largest gain, though none was over 5 per cent. Italian Salary Slash. Italy has followed the German ex- ample and made an even more radical 12 per cent slash in salaries of govern- ment employes. It is estimated that this will be enough to iron out the an- ticipated budget deficit for the year. Business is now that govern- ment pressure will reduce other wages and price levels. Semi-political strikes in Spain are less vigorous, but political conditions are tense, with elections now scheduled for March, Peseta stabilization is likely to ‘ake place at around 12 cents. ‘The Geneva Economic Conference so far is productive of only an assortment of dlwrfinz views. Accord under pres- ent world conditions is improbable. MARGIN REQUIREMENTS REDUCED BY BROKERS Special Dispatch to The Star. NEW YORK, November 29.—A lead- ing New York Stock Exchange house has announced a reduction in theif minimum margin requirements on ac. tive stocks listed on the New York Stock Exchange. This reduction par- ticularly applies to low-priced stocks. It is understood that the firm’s action is due to the fact that at present abouf half of all the active stocks are sell- ing below $40 Er share. Under nmv{“.lchmle' :o firm reserves ight, as usual, require a larger mn, in its discretion, on any par- r stock or stocks. schedul ‘The e becomes effective December 1 in all the firm's through- the country. the the L branches oul E The new minimum margin require. ments on stocks listed on the New York Stock Exchal 2 share to the wals, with wealth had ishing common ‘haracteristic | banks T 3 there So ‘bef the; tightening quarte: ing 1t shas Business News in Retrospect National Banks Have De- voted Considerable Effort to Building Up Their Trust Business Since Pas- sage of the McFadden Amendment in 1927, BY L A. FLEMING. Passage of the McFadden amendment in 1927 gave to the national banks the privilege of assuming all the functions of a trust company and the right to add “and trust company” to the end of their official title. The only limita- tion was the recognition of the rights of a State, such laws governing a trust company's operation being honored. Prior McFadden amendment national banks were allowed the same rights under limited rules and with re- ne' , etc. But few banks avalled themselves of the early rights under the old laws, and the coming of '27 there were great changes to met, great been gained, mighty corporations established and many of them, msnug individual producers and incot , closely held industrial establ nts, decided to put the bur- den of furn their capital upon the public and issued millions of new stocks, which later cluttered the New York market. A veritable rush of national institutions to seek a share of the trust company business followed. Formerly, the charters of national expired every 20 years and had to be renewed. We had an experience in Wash! n that demonstrated how one man ht hold up the charter of a bank. Hence Was no assurance of permanency in the matter of han- dling trusts, but this was remedied in the McFadden amendment, the measure that gave real impetus to the banking business under national charter. ‘There is a fly in their ointment and one that to get out of their way. made to the decision of a New England Federal jus- y_are Reference is tice that the merger of a trust compan; with a national bank did not give the bank the right to function under wills and other documents n: trust wnl‘:omv,h as trustee and executor, either or 5 As stated before the Legislatures of each State are being urged to rectify this matter at their sessions ter. Today there are 91,000 trusts, more red by nlnong or less, bel administes banks, and at least $4,500,000, their care, while they are also for $12,000,000,000 of bonds issued ment of bear upon their purchases. J. W. Pole, controller of the cur- rency, will undoubtedly guard closely all trust assets and will especially watchful for national banks in weak- ened condition, for the right to operate as trust companies is broad and many banks in relatively small sectors have it. Bank Failures. Many of the bank failures of today are among the State institutions that should have closed their doors a year ago. Many are small institutions in calities where it is a difficult matter to even conduct business on a satisfactory No Income Tax Clipping. PFive times within the last nine years been reduced the the taxpayer. It would seem that the clipping process in so far as income taxes are concerned has definitely ended. Not only that but it would be but natural that the trend should take the reverse direc- tion. For the first quarter of the fis- chief sources of income $40, a month, and the ratio for the second quarter would be even heavier, as there has been no betterment in ess, especially in the producing end. With the fiscal year showing a loss of at least $500,- 000,000, one may judge that Mellon will not advocate a cut, but rather that he may have something to say regarding an increase. Congress is happy when it is cutting income taxes, just as the various States seem to be pleased when flndlng some- thing that they can put ler the impost of a tax. Real effort is Treasury Department to increase the collection of taxes and to secure a just report in connection with incomes. 'w important statements of incomes are passed and approved in the two. year period provided by law, this neces- sity being ated by the Treasury in secl the taxpayer an agree- ment extending for an indefinite period. the case of a hxp:&et refusing this consent he is immediately plas- tered with a much heavier tax, for the burden of proof is on the debtor. Getting after the the mfluu for non‘x-llretuml"md taxes tt}we make an important contribu to the Treausry. 2 NEW YORK COTTON NEW YORK, November 29 (#).—A further decline of 9 to 10 points in cotton during today‘s seemed to attract a little more and considerable week end covering, was followed by rallies which carried the price of May contracts up from 10.96 to 11.10, or 4 points net higher. Thl:r‘dlell :loud at u.on.mmth: general markef very a netnlulvmeu of 1 to 4 points. y aming the it this 000 trustees increased buying inf been laid off fr ter | the in opinion, the need busine of tax The ministered. the be king the lo- | other business and commodities. to t, in PROSPERITY AIDED BY RAPID GROWTH OF NEW BUSINESS Four Great Industries Added to List in Last 20 Years. STATE TAX COMMISSION ~ RECEIVES INDORSEMENT Conference Board Urges Impor- tance of Expert Advice on Revenue Matters. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, November 29.—In the last two decades four great industries have developed. First, the automobile, which forced an epoch expansion g business activity. Next, motion pios tures. This industry has developed in 20 years into one of the 10 big busi- nesses of the world, giving hundreds of thousands employment and millions of people daily entertainment. Then radio came with a bang to supplement Brehm Co. of Chicago, whose business has been expanding rapidly during the last 18 months, although other 1ml- nesses have been running in low gear. Appeal to Home Owner. “And Il tell you why,” continued this round-faced, youthful manufac- turer. “It has made an instant appeal to the home owner, who for years has attempted, without success, to eliminate the devastating effect of dry Winte air on his family’s health, his furnishings, the woodwork, floors paneling. Proper humidification of air really brings comfort and fulness into the home. “At such times as these,” Mr. Biehm, “when older indust: finding 1t Inm;:mxly difficult Lt ?Eiigsa.gsag P Fgfii 28 g § il in the musty old patent files and forth some of these new wonders? Report on Taxes. 4 After & year of study, the Nationdl Industrial Conference Board has com- pleted a comprehensive report on g of State and locllpo es. board has divided the r - der two subjects: - The vmou:ml‘% taxes and how they are ade Of course, first essential of any tax system 1s that it should be enforces able. Many ideal forms of taxes seem to be non-enforceable, which is a fatal weakness. Looking into the future, board concludes that from the pi trend the future tax systems will in- clude those imposed upon real estate and upon such tangible personal prop- erty t has been found to be taxabl while the major part of the intangibles will be exempt and the property taxes will be supplemented by taxes subject result an etiu.ltlble tax mum.m.x poor law, well administered, good law, poorly administered, cannot vroduce satisfactory results.” Sugar Price Stabilization. Thomas L. Chadbourne, New York lawyer and financier; has been able to get the'Cuban government to set $42,000,000 of borrowed money for National- - Bugar Co and it from: the m-rkecf“‘" The corporation has wide w'a almost dictatorial in sweep, both in field of production and export. The N ng vately, Which Tater may be oftered. publicly i the United States. b If it is, President Hoover will find himself in an embas