Evening Star Newspaper, January 11, 1931, Page 59

News* of Markets | Pages 1to § Part 6—12 Pages D. C. BANK LEADERS ARE APPOINTED 10 - ARRANGE CONCLAVE Early Steps Taken to Planj . Annual Convention at \ Hot Springs, Va. RORMER WASHINGTON MAN PACKARD VICE PRESIDENT Capital Traction Stock Advances in Saturday’s Trading on fa Local Exchange. * BY EDWARD C. STONE. Lénier P. McLachlen, president of the Distirict Bankers’ Association, and Fred- erick P. H. Siddons, chairman of the Genperal Convention Committee, yester- day appointed the complete membership of the committee in connection with the annual June conclave, which this year is to be held at Hot Springs, Va. Tht: committee’s personnel includes every bank president in Washington and many other high ranking officers. ‘The , chairmen of the enu&mnl:el"‘le&l progiram, sports, transportation, hot and other :g:.lmltwel have already been ann . Each year the preliminary arrapgements are made a little farther in agvance, and this year is no excep- tion. The General Committee, just ap- poinged, follows: Bankers on Committee. Prederick P. H. Siddons, chairman; J. Frank White, vice chairman. Corcoran Thom and Howard Moran, Amegican Security & Trust Co. Mpurice Otterback and W. L. Koontz, Anacgostia Bank. Raymond L. Schreiner and Charles H. Claskins, Bank of Brightwood. Mauzice D. Rosenberg, Joseph San- ders, John M. Riordon and Thomas Groom, Bank of Commerce & Savings. John C. Walker and J. Ezra Troth, Chevy Chase Savings Bank. Prank J. Stryker and Robert H. Lacey, Columbfa National Bank. Wade H. Cooper and Laurence A. ,_Commercial National. Brahany, Crane, Parris J. T. Exnicios and L. A. M}’, De- partmental Bank. Joshua Evans, jr, and Barnum L. Colton, District National Bank. John C. Yost and S. Wilson Earn- shaw, Bast Washington Savings Bank. John Poole and Charles B. Lyddane, mm]~Am¢Hun National. John and Thomas P. P'nnklm National. W. B. Hibbs, K. W. Corby and W. W. Spaid, W. B. Hibbs & Co. Fernamdo Cuniberti and F. J. Kauf- man, jr, International Exchange Bank. George O. Walson, Liberty National Floyd| E. Davis and James A. Soper, Lincoin National. e Lanier P. McLachlen and Archibald luuchbn, McLachlen Banking Cor- Bfl'tflm Chflwrm..n Morris Plan Bank of ‘Wi Claude H. Woodnrd and Emmet C. Dlvhon. Mount Vernon Savings Bank. H. Pope and C. D. Ratcliffe, Mun- ley Trust Co. Other Committee Members. George L. Starkey, Rutheflord J. Dooley, National Bln.k ‘ashington. H H u:xee. . C. B'e'ln National c-pml W. White, C. P. Jacobsen, Nationms Metropolitan. 5 William Prank Stetson, Ings ‘Trust. Theodare Mj Bank. . Walker, Robert 8. Stuns, Bank. Henry W. Offutt, B. Agee Bowles, Fobert V. Ploming, Hil leming, Hilleary G. Hos- uum Riggs National. i P. G. Addison, jr.; mj Julius 1. Pe)ler, Becurity Savings Commer- v:cux B. Deyber, P. W. MacKenzie, ond National Bank. John D. Howard, John M. DeMarco, venth Streei Savings Bank. Edward J. Stellwagen, Edson B. Olds, Unlon ‘Trust Co. R. DeLashmutt, John P. eook United States Savings Bank. John B. Larner, Charles H. Doing, Washington Loan & Trust Co. Ezra Gould, C. P. Burwn Washing- ton Mechanics Savings Bani E. Jarrell, J. D Leonard, ‘Washington Savings Bank. Former Washingtonian Honored. Milton Tibbetts of Detroit, who has Just_been elected a vice president of the Packard Motor Car Co., is a native of this city, attended Western High schoni and graduated from what is now the George Washington University Law 8chool. ‘When only 12 years old he was editor and isher of what he called the Weekly Bulletin, a little paper which had a circulation in nearly every State in the Union. When 13 years old the fl!wf of the Boston Globe invited him to Boston as his guest, published his picture and a sketch which claimed that the boy was the youngest editor in the United States. While in Boston one of his subscribers also entertained him &t a mearby shore resort. ML Tibbetts made a special study of pstent law. Not long after getting his lmw degree he obtained a position as pmtent attorney with the Packard firm &t the company's manufacturing lant. He has been with the automo- e firm 23 years, as patent counsel, assistant vice president and now vice Ppresident and patent counsel. Several of his relatives still live in Washington. ITraction Ends Week Higher. Twelve small lot transactions in Capital Traction stock drew consider- able mttention during the trading on the Washington Stock Exchange yes- terday. The stock opened at 41%4 and in 10 shares sales climbed to 4212, the highest mark reached for several weeks, and closed at 42'. Bonds were in fair demand, three bank stocks appeared on the board, and both type stocks figured in the day's trading. Sales were as follow: Capital Traction 55—$1,000 at 87. ‘Waghington Gas 6s '—$2,000 at 102 Gas 55—$1,000 at 103. tal Traction Co.—10 at 41%, 10 fi 458 A 10 at 41%, 10 at 41%, 10 at at 42%, 10 at fl% 10 at 42%, 10 II 42%, 10 at 425, 1 at 42%, 10 ot 420 Continental Trust Co.—15 l!. 118. Undon Trust Co.—3 at 224. w National Bank—1 at 450, 1 umon Ilmntno—lo ot oz, FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C, SUN JOHN A. HANNA, Who has just been re-elected president of the Capital Traction Co., been with the street railway concern since 1894 and president since 1926. He is !a graduate of Princeton, a native of Kentucky and a member of the Nation- al Soclety of Civil Engineers. INVESTMENT BOND MARKET STRONGER Increased Buying of High- Grade Issues Paves Way for Advance. Special Dispatch to The Star. NEW YORK, January 10.—Though the first two market sessions of the New Year proved the rising temper of the bond market, it was during the past week that all doubits of a broad advance had to be cast aside in the face of a general improvement of 2 points on the average. At the end of the week Standard Statistics index of 30 bonds, which is representative of all domestic types based on the 1926 average adjusted to 100, stood above 98, eompared with the low of last December 16 of 92.9 and the 1930 high of 1019, Nor did the improvement, especially in the junior grades of bonds, show any sign of slackening when the week ended. High-grade issues, having the least ground to recover, reached the top first and among the prime railroad securities | many areto be found that have ad- vanced above their 1930 highs. Buying Spurt. ‘The sudden relief from forced selling, cither as a result of stock market de- clines or to establish tax losses, came at the same time as the Jamuary 1 rein- vestment demand. And this year the latter had a more than ordinary effect, because during December, when both markets were 80 weak, dealers were re- luctant to purchase in advance of the demlnd The result was a sudden burst of buy- ing in high-grade issues, both domestic and foreign, that spread gradually to Jjunior grades. This movement, in turn, encouraged the speculator and many issues selling on a liquidation basis were ushed up 5 to 15 points by his manipu- ation. An instance of was the trading in the bonds of a railroad in receivership. Speculators drove them down by short selling during the acute weakness of the market, covered at or near the bottom and, realizing that the forced sale value of the assets were much above the level to which the bond had been driven, bought in again and carried it up 10 points. ‘There was a tendency to narrow the spread between secondary and first- grade bonds, but this did not go as far as it might, the caution in this respect suggesting that corporate investors still are handling any other than absolutely safe securities with.great reluctance. New Capital Market. The abrupt return of the investment market to price levels comparable with the low money rates prevailing was also a spur to the new capital market. Early in the week, nothing but & few municipals made their appearance, but then some sizeable raflroad issues were successfully marketed, one or two small public utility floatations were readily marketed and on Priday actual new of- ferings and reports of large financing in immediate prospect indicated the re- turn to normal of the bond market's digestive machinery. (Copyright, 1931) REDS SEIZE DORMITORY FOR YOUNGSTOWN’S IDLE Former Marine on Guard After They Refuse to Let Salvation Army Officer Take Charge. By the Associated Press. YOUNGSTOWN, Ohio, January 10. —A “workers' council” headed by ad- mitted Communists last night sized control of “Friendly Inn, the city new sleeping quarters for the un- employed—but this morning & former United States Marine was standing guard over the portals When Capt. James Hepburn of the Salvation Army appeared at the former police substation, which has been equipped with army cots and blankets, the “workers' council,” headed by Al- fred Walton, refused to let him take charge. Mayor Joseph L. Heflernan and Police Chief Paul Lynden, called to the scene, told Walton that the Sal- vation Army would run the place, or it would be closed. The mayor finally picked out N. E. Wilson, veteran of the Argonne and & soldier of fortune, and put him in charge, The mayor returned later to sit on a cot and swap yarns with the unemployed. He distributed _tobacco, and tried to give his overshoes to a man—but they wouldn't fit. Today all was quiet on the “Friendly Inn front. Bro.. managers of the local office of the Home Life Insurance Co. of New York, has just returned from a con- gers. He reports & new program of general agency and agency contracts Which is to come as a result of the con- Ethelbert 1. Low, chairman of the board, d-cflbed the new contract as -ppmng vested renewals to all agents in the field for ua:‘wmrny and new provisions for agents and genera ts which he says will assure com- ownership renewal commis- STOCKS GO HIGHER ASU.S. INDUSTRIAL PICTURE BRIGHTENS, Rebound in Market fleflectsj Better Feeling in Trade Circles. BANK STATEMENTS SHOW HIGH RATE OF LIQUIDITY Evidences Are Now Apparent That Investors Have Become More Confident. BY CHARLES F. SPEARE. Spectal Dispatch to The Star. NEW YORK, January 10.—The pro- nounced changs in the trend of the security markets since the first of the year may be attributed to a new set of technical conditions and to the healthier mental attitude of the public toward business prospects generally. The one has had equal influence with the other in bringing back prices of both stocks and bonds from the subnormal averages to which they had declined. As the distribution of securities has increased in this country, business has been more and more affected and trade opinions more colored by the fluctua- tions in corporate shares, The mood to buy goods or to withdraw from the market has been much influenced by the current report of the state of affairs in Wall Street. Therefore, it is fair to assume that not a little of the cheerfulness that has developed in tra circles the past 10 days, in spite of the commercial mortality figures now being published, has been generated .f’ the substantial advances in nearly classes of “‘equity” issues as well as by the pronounced improvement occurring in domestic and foreign bonds. In his thoughtful and candid analysis of the financial situation this week, Paul M. Warburg says that the so-called “business cycle” forms a subject of study for psychologists rather than for economists. Fears Are Overcome. Fear has been the most dangerous element in the recent situation and the one most difficult to overcome. There has been fear on the Kln of bank depositors for the stability of their institutions; fear by holders of rail- road sccurities that the transportation industry was breaking down and rail- road credit being permanently de- stroyed; fear that former sound govern- ments in Europe might be replaced with those inimical to capital; and fear of a spread in this country of social and economic principles from which most of the rest of the world is now suffering. Outwardly, at least, there are strong evidences this week that these obses- sions have bzen thrown off and that a public that was in the panic of the man who finds himself slipping down in quicksand has discovered solid ground under his feet. The suspension of the Chelsea Bank & Trust Co. just before Christmas was reccived with a calmness in Wall Street that was significant. Nor was there any alarm manifested over other fallures that occurred at about the same time in Philadelphis and in the South and West. It was then known that the banks throughout the country had put themselves in a posi- tion where they could command, in an emergency, the highest ratio of cash, call loans and United States Govern- ment securities since 1907. The statements that have since been published, showing their condition as of December 31, reflect an astonishing degree of liquidity. Bond Liquidation. The early mystery as to the source of bond liquidation” has been entirely lifted since bank statements have been their contracted figures of corporation bonds and stocks. In the industrial world the week has produced signs of improvement. Ex- panding and firmer markets are rep- resented by an advance in iron and steel production to 41 per cent from about 30 per cent last month; in high- er prices for scrap iron, in an increase in aytomobile production in December over the seasonal tendency, in consid- erable re-employment in the Detroit district since the first of the year and in an agreement effected in Germany on Thursday between the sugar pro- ducers there and those of other coun- tries who had already done their part in the effort to restore the equilibrium between the world’s production and consumption of sugar. Unfortunately, the value of some of these developments is nullified by the decline in commodities, such as silver and base metals, and in the uncertain character of the market for agricul- tural products. The general commodity index this week has reached the lowest level since it started downward at a rapld pace in 1929 and Government figures on unemployment, just made public for the first time, approximate the maximum uum-m of labor organ- izations. Money Rates at Bottom. During the next three months money rates will reach the minimum witnessed in this country for the past 10 vears. It is not unlikely that we shall see call loans at one-half of 1 per cent. This week the Federal Reserve Banks in Chicago, Atlanta, St. Louls and San Francisco have reduced their redis- count rates from 32 to 3 per cent following the earlier action in New| York and Boston. Time money and acceptance rates have been shaded. (Copyright, 1931.) NEW YORK BANK STOCKS Trade Trend NDAY MORNING, and Outlook President of Great Northern Railway Believes Return of Better Times Is Assured by Initiative of American People. BY RALPH BUDD, President of the Grea Told to Jack Burket, Special Dispatch to The Star. MINNEAPOLIS, January 10.—In such a period as business is now going through it is natura] that many misgiv- ings should be expressed for the future, even to the point of questioning whether the United States ever is go- ing to recover its full measure of pros- perity. One has to recall events only about 15 months in the past to realize then exactly the opposite feeling prevailed, and that opinions were being advanced to the effect that the country had reached a stage in its development which had established standards of llving and measures of business ac- tivities which could not be expressed in terms of former activities; that therefore the old economic laws and formulas had become obsolete and new rules should be applied to suit the new conditions. “New Era Boys.” Advocates of this now discredited line of thought were not confined to any branch or kind of business, or to the lower officlals or employes. Heads of large institutions, such as banks and railroads, were included. Advocates of this theory are some- times referred to as the “new era boys.” They foresaw expansion along various lines to an indefinite and what is now known to have been an impossible ex- tent. The pendulum has swung from one extreme to the other, and it seems reasonable to believe that the doleful- ness of the prospects some people are now seeing and the utter collapse they are predicting are as unjustified as was the chimerical optimism of the year de | 1929. The initiative and inventice genius learned from the old teacher, experi- ence, however, is of great value, and may be worth all it is costing. This generation probably will never forget that the law of supply and demand and the rule of basing prices of com- mon stocks on earnings are as unfail- ing and constantly operative as the more obvious law of gravitation. But the natural resources of the country are undiminished; the eat factories and transportation facilities are fully available, and the hundred and twenty odd million people of the country can be supported on as high a level of living as ever was possible. ‘The initiative and inventie genilu which brought within the reach of the masses what formerly were considered luxuries unattainable except by the rich (and are still unobtainable lux- uries in most countries) are unimpaired today, and will figure in the future as effectively as they have in the past. The march of progress has not been stopped by the mere withdrawal of some of the overly optimistic outrid- ers and heralds whose enthusiasm car- ried them too far into the realm of imagination, nor by the shrinking re- treat of pessimists who see no future rospect except retrenchments and lowering standards of living. Victims of Efficiency. ‘There is no denying the fact that by the year 1920 the machinery of produc- tion and distribution had expanded be- yond l.he (mflluu for eonsumption of goods. some extent the people of the Ummd States had indeed become victims of their own productive effi- clency. During the last 2 months, however, stocks of goods of all kinds Northern Railway. | RALPH BUDD. | | have been reduced, and the capacity for_distribution s %0 grest that such large warehouse stores as were neces- sary in the past will never again be carried. Distribution will be made more or less directly from manufac- turers to consuming markets, and with normal consumption the machinery of production must move at normal speed, which, of course, means an accelera- tlon from its present slackened One great promise of the future lies in the fact that hundreds of millions of the world’s population have not yet been able to enjoy even a small propor- tion of the convenlences and luxuries which are common to the American people. The awakening of these mil- lions to the possibilities of improving their status should open the way for disposing of enormous quantities of our manufactured goods. Even if the other countries of the world are able meas- urably to follow our-lead in industriali- zation, consumptive desire and demand in those countries are of .much more rapid development than is productive machinery. Sees Better Conditions. It seems certain also that for a gen- eration or two at least, the imitators of our manufacturing methods and pro- ocesses, while possibly able to make things that would constitute revolutionary im- provements compared with the primi- tive implements and machines they have today, will not be le to make such finished products as will meet favor in the world’s markets competitively with the products of our factories. ‘Taking the long view the conclusion seems inescapable that we are nearer the beginning than the close of a period of continued betterment of world living conditions and standards, which is com- ing about through the substitution of machine labor for hand labor, and through placing at the disposal of the people of the world more and greater comforts of life. If such is the case, as I believe it to be, when we look back on the year 1930 in retrospect we will regard it as a period of necessary slackening in the speedy pace to which bustness had been stimulated by over expansion, over im- agination and over speculation, and not as the end of our continuing upward progress. (Copyright, 1931, by North American N paver Alliance.) STOCKS ON BASIS OF LOWER DIVIDENDS Bradstreet’s Says Cuts Have Been Discounted Which May Not Take Place. Security markets appear to have been pretty well liquidated, so much so, that stocks may be said to be already selling on a basis of reductions in dividends that have not yet occurred and may not take place, says Bradstreet's Weekly Review. Among other things the analy- sis adds: ‘ “As to labor costs, one important ele- ment remaining to be considered, it might be said that in some large con- struction lines these have been par- tially, if not entirely, absorbed by im- ymved methods and lower costs of clothing and other essentials should help to complete this process. On the whole, it seems possible at this writing to take fully as cheerful a view of the future as over-sanguine observers did a year ago, always bearing in mind that our country is tied in with the rest of the world and must continue to be affected by world conditions. “Certainly, with commodities so much lower than they were a year ago, the way seems clearer for a readjustment during the present year, always keep- ing in mind that business and specula- tion, pure and simple, are not neces- sarily and always twin brothers moving in close unison. “It seems entirely reasonable to ex- pect that a certain amount of improve- ment should be shown with the opening of Spring activities and that next Fall should, in turn, see further advances in activity.” INVESTMENT TRUSTS NEW YORK, Janual 10 (#).—Over the counter market closing bid and asked prices on investment trust shares - Bid. Asked Am & Gen Secur 1% Am Srounders 15 ter Secur Corp Am Int Becyr ‘Corp Am 8% b g 3130 NEW YORK, January 10 (Special) — | e The bank stock and trust share market was dull but firm today. Bank of Ameriea at 60 was up 2 from its open- ing; Chase National 97'¢, up 1%: Con- tinental 20%, up %; Corn Exchange 127, up 1; Empire 58, up %; First National 4,000, up 50; Guaranty 484, up 6; Irving 36l up %; Manhattan !6-‘/ up !3; Manufacturers’ Trust 46, ; New York Trust 157, up 3; Blhktl‘l Trust 112, up %; Brooklyn Trust 505, up 5; National City 95, up 1%, and Public 645, up %. The fol- lowing were unchanged: Chemical 49 and Commercial 205. —s WILL CUT PRICES. £ | Super Corp of A: Spencer Tras Trastes Stand Tnv Shrs T U 8 & Brit I Others unchanged. EARNINGS .REPOI{TED NEW YORK, January 10 () —Per share earnings of corporations report- ing this week, with comparisons with last year, include: Year, November 30— Lehigh’ Portland Cement..... Douglag Alrcraft Preliminary. Water Works & Elec rs NEW YORK, Jlnull’! 10 m—mm 5‘" have been made by other leading ray manufacturers to follow the mum o( the Viscose Co. in revising prices down- ward. Executives of these firms indi- cated that their new prices would be in accord with the levels as set by the Viscose Co. SILVER QUOTATIONS. NEW YORK, January 10 (#).—Bar silver, 20%. POTATO mn'r CHICAGO, January 10 (P) (United ; on track, 147; !ou.l United 1’: dull; N\Ifld ho Russets No, 1, l'th e dency GOLD RUSH NOTED IN CANADA MINES Country Passes U. §. During Year 1930 as Producer of Precious Metal. Special Dispatch to The Star. NEW YORK, January 10.—Canada passed the United States in 1930 as a gold-producing nation, and now ranks second only to South Africa, according % Montreal advices to Pask & Wal- bridge, New York Stock Exchange house, During the year just closed, Canada gluduced 2,089,768 fine ounces of gold, aving a value of $41,000,000. Reports show that Canada’s increased gold pro- duction came mostly from Ontario and Quebec, where some of the large cop- per mining companies are now obtain- ing nearly as much revenue from gold as_from copper. Because of much recent talk of a pos- sible decrease in the world's gold sup- ply, the advices stated that Canadian mining interests are greatly speeding up production, and that present phm forecast a 34 per cent increase s $57,000,000 total output during 1931 “In fact, Canada right now is experi- encing one of the most unique gold rushes in history,” the advices stated. “Prospecting and developing is fomz forward at a rapid rate, especially in the provinces of Ontario and Quebec. However, this modern rush lacks much of the color of gold rushes of other days. Instead of the old-time prospector, made famous by the gold rushes in California and the Klondike, the pres- ent feverish operations are being car ried forward in the form of high-grade prospecting and development of proper- tles by established mining com; e ———— CANADIAN FINANCING IN BONDS INCREASES Special Dispatch to The Star. INTREAL, January 10.—The mar- ket for Canadian government and mu- nicipal bond issues during 1930 was characterized by an increase in the total amount of financing and during recent months by a noticeable ten- toward price stabilization, coupled with a general technical im- provement, according to a survey com- pleted by A. E. Ames & Co., Ltd, specialists in Canadian investments. The volume of new financing by the Dominion and Provincial governments, municipalities and railroads, including rail issues guaranteed by the Dominion, lf‘rellled $545,451,107, or an increase 27 per cent over 1029, according to the survey. Of this amount $293,- 132,000, or 53.74 per cent, was absorbed in the United States, $247,524,107 in Canada and the remainder in Europe. Dominion and provincial finaneing .:howed & gain of 148 per cent, increas- 118,960,500 in 1929 to $295,- m ln 1930, flw analysis shows. XEW CARS ORDERED. NEW YORK, January m (P)—The le Steel Co. has 30 cars from the Amertun C r& has or- JANUARY 11, FOREG BUSINESS OUTLODK INPROVES DURING LAST WK Rate and Tariff Truce Aid Sentiment. 1931, COAL TRADE HAMPERED BY DISPUTE OVER WAGES Conditions in Italy Giving Prom- ise of Change for Better. Special Dispatch to The Star. NEW YORK, January 10.—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending January 10: Europe.—The new year opened with a tone of optimism in many countries. The first week has been marked by a reduction in the French bank rate; the announcement of a five-power tariff truce between Belgium, Holland and the Scandinavian countries; n broad rally from December's low prices on staple foodstuffs and raw materials (except copper), though the best prices, reached on January 5, have not been fully sus- tained; improvement in sterling and peseta exchange. On the other hand, the week has been marred by the outbreak of labor troubles in British and German coal mines, with the possibility that troubles will spread to other industries, even to the railways. The break in silver be- HNow the former all-time low was par- ticularly unfortunate in view of indi- cations of a trade revival in the Far Encouraging Signs. Industry generally is observing longer than usual year-end shutdowns for in- ventory, but stronger raw material mar- kets and placement of some substantial construction contracts in England are encouraging developments. France, where deflation only now is beginning, continues, and probably will continue throughout the year, to be the excep- tion in the general picture. Year-end forecasts of leading manufacturers, economists and bankers express the be- lief that the underlying world trend will be unevenly upward. However, they caution that sharp relapses are to be expected and none forecast really sub- stantial gains before Autumn, and many not until 1932, ‘Wage issues probably will dominate the economic picture in coming months. ' These forecasts already are exem- plified in conflicting immediate trends. On the one hand, reduction of the French bank rate has been the principal cause for immediate improvement in sentiment and has directly occasioned the buoyant advance on the bond mar- ket because of the feeling that .cheap money is assured for some time to come. On_the other hand, the coal stoppage in Wales and the Communist-lead wage strikes in the Ruhr are symptomatic of far wider issues than are immediately involved and will probably prove only the beginning of a difficult period of inevitable readjustment of wages to lower consumer price levels which are already, or are in course of becoming, established. London—Though all markets began the year quietly, but hopefully, they are now under the shadow of the Welsh coal and Lancashire cotton mill stop- pfll&, Last-minute negotiations failed | to bring any agreement in the coal in- dum and 140,000 miners have walked out. “Renewed nhegotiations so far are fruitless. Coal Shipments Drop. The first effect of the stoppage are already evident in the coal shipments from South Wales, which registered only 379,000 tons last week, compared with 668,000 tons in the same week last year. Lost orders already aggregate 200,000 tons, Further, the Western Railroad has been compelled to lay off 1,500 men engaged in coal handling. Public | opinion is opposed to a long stoppage, | but the unions are preparing for a pro- longed fight, since Lh:y are fortified by ;ol&:n from the Wholesale Co-operative ty. The stoppage in the cotton industry involves 3,600 operatives in the Burnley district, where the “more looms"” sy has been worked experimentally some time, but owners threaten to close all mills if the strike is not ended by January 12. Berlin—Business in the first days of the new year showed some slight touch of optimism which was reflected in the firmness of the stock exchange and re- action to the reduced discount rate in Paris. Industrial and trade indicators fail to support the better undertone ex- cept for seasonal improvement in leather and better sales in nitrogen fertilizers. Btntlment is marred by the Ruhr te, though complete collapse ol lho unist strike within two days 1s noted with satisfaction. The be- llef is general that some compromise will be reached before the critical date —dJanuary 15—arrives. These facts, added to the rumor of lower dividends among & number of leading companies and a fresh dismissal of personnel in the steel trust, contribute to destroy any delicate buds of rather conventional new YT voria. ‘wor] sugar t, actically doomed last week, has r:wdpcrhmce of enactment. Negotiations were renewed a8 & y of securing for- :ylgi, cing for the huge sugar car- er. Bank Rate Reduction. Paris—The Bank of France has cut its rediscount rate from 21; per cent 1o 2 per cent, the lowest in 40 years and, with the Federal Reserve Bank, the lowest in the world. Although the re- duction brought a technical improve- ment in the viewpoint on international monetary relations, it is not expected to bring about any early or material national or international effect. Some criticism is voiced in France that the reduction will only aggravate the already existing currency and price deflation. it Christmas and New Year sales are Ym 25 per cent below last year, despite clearance sales and slashed ll'llln—aullne— is restrained, &Iflly to the holidays, but largely to the dlfllculty of -p ralsing the immediate '.he forcible wage- Co., Rail . The | be in dry wlyneuor:pom expected Classified Ads Pages S to 11 Again Heads Bank FERNANDO CUNIBERTI, Who has just been re-elected of the Iniernational Exchange Blnl, Fifth and H streets northwest. He has been in charge of the institution sev- eral years, the bank showing marked progress under his guidance. At one time he was connected with the Italian embassy and later engaged in business in New York. —Harris-Ewing Photo. RAILROAD MERGER TERMS DISCUSSED termine Basis of Exchanges in Combine. Special Dispatch to The Star. NEW YORK, January 10.—While it is conceded that it may be a year or more before the Eastern rallroads are given permisssion to lidate on the basis recently outlined, Wall Street is already speculating on the terms of exchange and the guarantees that may be arranged between the four major systems and the independent lines which are to be absorbed under the existing agreement. This is the second phase of the merger development, which has al- ready influenced heavy buying of rail- road shares and advanced their average to a level considerably above that on December 29 and above the low Ivel’lec for last year, reached on December 17. Question of Financing. Bankers for the Eastern carriers have so far given only academic con- sideration to the question of financing involved in the . They of time to col believe there will be plent; think this matter over, for they see ahead months of delay beton I;uf.homy merger goes into effect, con&ml of in- dependent lnes will through exchanges of ntaeh raf than by the issuance of bonds. The statistical picture of the four systems, as they will appear under the new plan as prepared by Representative ttee dicates the relatively small mileage volved in the reallocation of roads in the Eastern territory. Consequently, the element of nnnexn. in connection with a Fropollflon that concerns 53,000 miles of line and a property investment of nearly $10,000,000,000 is not as im- portant as at first appears. In the “set-up” that has been made by Mr. Parker, the roads to be acquired the Pennsylvania, New York Central, Baltimore & Ohio and Chesapeake & Ohio-Nickel Plate systems aggregate approximately 15,000 miles, or slightly less than 30 per cent of the total mileage represented in the completed systems. New Mileage. A high proportion, however, of the roads to be acquired is already in the possession of the four systems t h stock ownership. For instance, new mileage of the Baltimore & Ohio is given as 5,466 miles. It includes that of the Buffalo, Rochester & Pittsburgh and the Buffalo & Susquehanna, both roads now owned by the Baltimore & Ohio; of the Western Maryland, in which the Baltimore & Ohio has a controlling interest; of the Chicago & Alton, which it has recently purchased and whose authority to hold was ‘nln sustained by the court Thursday: the Readin, in which the Bammore & Ohio has a 40 per cent stock interest. Out of the total miles to be acquired, only about 1 age of prope in which the Bnlu- more & Ohio has at present no cial concern. In the Chesapeake & Ohio-Nickel Plate system as proposed, 3,047 addi- tional miles are to be acquired. In this case a high percentage will be subject to negotiations between the Van Swer- ingen interests and those who now hold the Wheeling & Lehigh Valley. It is understood the Nickel Plate management sometime ago comfleud arrangements for - session of the Chicago & Eastern Illi- nois. Addition to Pennsylvania. ‘To the present Pennsylvania sys of 11,285 miles are to be added GIS! miles of lines classed as those “to acquired” and ted by '.he De- trolt, Toledo & Ironton, the Wabash and the Norfolk & Western. In these .KC tem of any im m.nuufimat Delaware, Lackawanna & NEW BANKS OFFSET INCREASED NUMBER OF FAILURESINU.S. Records Show City Institu- tions Have Formed Many Branches in Last Decade. CITRUS INDUSTRY AIDED BY “FROZEN ICE” PATENT New Method of Merchandising Is Boon to Growers of Oranges. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, January 10.—Frozen assets! How many times has this been given as the reason for a bank's closing. Probably 90 per cent or more of the an- nouncement give it/as the real cause trouble. Now frozen assets may be good assets, but they cannot be wed out fast enough to pay depositors in cash. The year 1930 will go down in histos big bank failure year—an aj one from that point of view. k at this record for the last six months. Banks Wall Street Anxious to De- Sepiem estimates that during the year 1930 as many as 1,233 banks closed, tyin deposits of more than $800,000,000. In- cluded in his list of fallures are two very large institutions—the Bank of United States and the National Bank of Kentucky. During the last decade nearly 6000 banks have gone out of business, Mr. Axford makes the point that :lmon that number of branches bee country bank quits, the large establishes a branch, so that number of branches are kee) with the number of country have closed. are tely 24,000 e Dried. States’ a5 Today there unit hl.nk.l in compared with more than 30,000 10 'n'eme..odn forces ving in this ndous are mos field, but most of them make no rip- ples on the surface. “Frozen Ice.” " has cream. Now it looks as in the nexfin mnnuu rml are lskely to find your milkman de! Juice :u tkhe same time that he :glg‘eru your The orange juice en thawed out and hkun‘:t breakfast for makmmmumewummm milk. What does it mean? It should mean crease in ‘And_ “frozen iee” has onl; begun to enter industry. . during the last 10 years to Bethlehem Steel officials s of major importance. Grace, ymlden: of Bethlehem Steel on the stand Lhn vhjh his uhr.y nmu\mud to $12,- he received slightly more thln $! Nwmh‘l bopmses during the (Mxr cent represent mile- | That is olders of mi panies which have given past few years to their higher executives —want to know. Probably the outcome will largely de- pend upon the facts involved and on the law. One well known lawyer told this writer that if the Bethlehem board of directors delegated to Chas. M. Schwab, chairman of the board, and the executives who received bonuses, the power to fix the amount of the bonuses without again various bonuses back to directors for spprovu 1t raised a deli- cate question of I understand '.hu the suggestion was made to Cyrus 8. Eaton of Cleveland, when he was in the midst of his fight against the merger of Youngstown with Bethlehem that he proceed against Bethlahem in an _endeavor to get back nuses. But he re| lled sub- nu.ntll!l!. that that was not ind of In this connection, there is an inter- esting rumor that Cyrus S. Eaf James A. Campbell, Youngitown, and Eugene Grace, presi. dent of Bethlehem, met this week in * bY 8/ New York to work out & $2,000,000,000 , | other com) nection with the merger when it is finally approved will only involve the ‘hase of the New in the move- mmhofm.hlr-olmh acquired. - (Copyright, 1931.) itral League of Nations. George E. Roberts, economist, steel merger which may include four Prance, holder of the second largest afl(mwin'.ha'vrld.llobjem'a tion of gold report emn mittee of the American banker and is 8 already worked. in one industry—that of ice though 1t is leavasdacvas asé