Evening Star Newspaper, January 18, 1931, Page 61

News of Markets Pages 1to S FINANCIAL AND CLASSIFIED he Sunday Star Part 6—12 Pages WASHINGTON, D. C., SUNDAY MORNING, JANUARY 18, 1931. . TAXI COMPETITION WIPES OUT HIGHER - CARFAREREVENUE Ham Reports Heaviest Losses In W. R. & E. Passenger Traffic in Years. BUS SERVICE EXTENDED; | LARGE REPAIR OUTLAYS, RPotomac Power Co. Enjoys Gain! of 13 Per Cent in Sales During | 1930—Officers Re-elected. BY EDWARD C. STONE. By far the heaviest loss in passenger traffic noted on the Washington Rail- way & Electric Co.’s lines in several years was reported in 1930, according to the statement submitted at the annual meeting of the stockholders yesterday by President William F. Ham. Granting of higher car fares added substantially to the income, but intense taxicab competition then wiped cut the in. The financial statement shows gross income of $7.259,501.97, which includes $5.558.303.76 earnings from operations, and dividends from the Potomac Elec~ tric Power Co. amounting to $1,701,- 189.21. Operating expenses required $4,735,733.77; interest on funded and unfunded debt $653,724.83, dividends on preferred stock $425,000, and divi- dends on common $455,000, totaling $6,269,458.60. The balance of income for year 1930 | credited to profit and loss was $990.- 043.37, while miscellaneous items cred- ited to profit and loss totaled $290.- 953.76. Total credited to profit and loss during the year was $1,280.997.13. Fewer Revenue Passengers. President Ham reported that during 1930 the system carried 67,996,895 revenue passengers and 22,243,381 transfer passengers, or a total of 90,- 240,276 passengers. In 1929 the com- pany carried 74.319.070 revenue pas- sengers, thus indicating a decrease in 1930 of 6,322,175, or 851 per cent, and by far the heaviest loss in volume of traffic handled for many years. Mr. Ham presented figures showing there was a decrease in traffic in 1925 of .36 per cent, in 1926 of .91 per cent, in 1927 of 1.36 per cent, in 1928 of 170 per cent, and in 1929 of .19 per cent. It has been a year adversely affected by general business depression, Mr. Ham continued, and by increasing street traffic congestion. Outstanding, however, as an adverse factor is_the unregulated taxicab competition which becamre acute about March 1 and still continues. The automobiles registered in the District of Columbia in 1930 for hackers and livery tags totaled 4673, an increase over the previous year of 41 per cent, which indicates the volume of taxicab service now on the streets of ‘Washington. The District au!hnrmeshhm: sought legislation by Congress whereby power to_regulate the operations of all taxi- cab_service would be vested in the Public Utilities Commission, but as vet action has not been taken on such legislation. On the other hand, revenues have ‘been favorably affected by the increased rates of fare. which were put into ef- fect July 23, 1930. Since the new fares became effective, actual gains were re- corded in September, October and De- cember while losses in August and No- vember were much smaller than in March and July. The benefits, how- ever, resulting from the higher fares have only been sufficient to overcome the losses attributable to unregulated taxicab competition, Mr. Ham asserted. Lieavy Construction Outlays. The amount expended for reconstruc- tlon, Tenewal and repairs to buildings and to track and roadway totaled $693,032, an increase over the previous year of $50,329. There was rebuilt dur- ing the year 10,372 feet of underground conduit track and 9,046 feet of over- head trolley track, at a cost of $369,000 ““We have again made liberal appropri- ation of funds,” President Ham continued, “for the expansion of our bus service. 1In 1930 we increased thé fleet of busses to 123 by the purchase of 23 yellow coaches at a cost of $176133. The total investment in buses now aggre- gates $860446. A modern garage on Georgia avenue cost $430,000.” Mr. Ham said that the status of merger legislation is practically the same as indicated in the last annual report. The Public Utilities Commis- sion has recommended to the present Congress legislation similar to that pre- viously submitted. The companies are flow co-operating with the Utilities Commission in the revaluation of both local traction lines. Pepco Business Again Increases. President Ham reported that the Po- tomac Electric Power Co. had again enjoyed an increase in the volume of its business. In 1930 it sold 318,972,780 kilowatt hours, an increase of 13 per cent over the previous year. The ex- pansion of the company. he said. re quires the expenditure of further large sums during 1931, which aggregate ap- proximately $4,600,000. Comparisons were presented between rates and conditions in 1930 and 1924 the date on which present profit-sharing agreement went into effect, the informa- tion having bearing on the present rate readjustment problem. Since the de- cree first went into effect there have been seven rate reductions, the report said. The total payroll for the year 1930 of the Washington Railway & Electric and subsidiary companies, including the | Potomac_Electric Power Co. was $5.- 312,285.82, an increase of $136,033.38 over that of the preceding year. There are 3,126 employes in the service of the Washington Railway & Electric Co.'s system, of whom 1,461 are in the employ of the Potomac Electric Power Co. The record of stockholders of the Washington Railway & Electric Co. at the close of 1930 indicates a total of 1515, of whom 950 are women, truste-s, charitable, beneficial and religious organizations. Of the total stock- holders 72 per cent are residents of the District of Columbia, preferred stockholders of the Potomac Electric Power Co. now num- ber 5,178. Of these 2,984 are women, trustees, charitable, beneficial, religious and other similar organizations, and 89 cent of the total are residents of District of Columbia. .~ Same Directors Re-elected. ‘The board of directors was elected, consisting of Woodbury Blair, Edwin C Brandenburg, Daniel J. Callahan, F. W. Doplittle, Robert V. Fleming, ' Julius Carfinckel, Edwin Gruhl, Wiililam F. Ham, Robert N. Harper, Cloyd H. Mars vin, Lennard H. Mitchell, Clarence F. Norment, Eugene E. Thompson and Harley P‘ ‘Wilson. ‘The dlrecwn‘&lf:v,d officers for the ensuing year as ws: president; 8. R. - ulative operations conducted for selfish Bank Official _ JOHN A. REILLY, ecretary-manager of the Washington ociation of Credit Men, who has n elected a vice president of the Federal-American National Bank & Trust Co. He will be one of the young- est bank officers in the city. —Harris-Ewing Photo. REILLY IS ELEGTED 70 BANK POSITION Credit Men’s Official Will As- sume Federal-American- Post March 1. John A. Reilly, sccretary-manager of the Washington Association of Credit Men, has been elected one of the vice presidents of the Federal-American National Bank & Trust Co., and will as- sume his new post March 1, according to announcement yesterday by John Poole, president of the bank. The other officcrs were all re-elected. ‘The new bank official is a native of Washington and is a son of the late Capt. Martin Reilly, former commander of the sixth precinct. He graduated from Business High School in 1921 and received his d-gree of bachelor of laws from Georgetown Univerity in 1924. He is a member of the bar of the District. As secretary-manager of the Wash- ington Association of Credit Men, he has been actively identified with some of the leading insolvency cases in this District in recent years. In the intercst of creditors he has vigorously prosecuted cases ipvolving commercial fraud. He has also enjoy unique expericnce in reorganizing and directing the opera- tions of enterprizes in matters of credit and finance. In September, 1920, he was appointed to the faculty of Columbus University, and since that time has been conducting courses in corporation finance and credits and collections. He 1s also teacher of law and credits at South- east:rn University and has just completed a series of lectures in com- mercial law, conducted under the! auspieces of the Washington Chapter of the National Institute of Credit. Mr. Reilly is a member of the Washington Board of Trade, and a former president of the Business High School Alumni Association. Federal-American directors elected other officers as follows: John Poole, president; Willlam J. Eynon, Wilmer J. Waller, Charles B. Lyddane, and Wil- liam C. Johnson, vice presiden Charles D. Boyer, cashier; Joseph D. Yerkes and H. H. Shackleford, assistant | cashiers; Erkskine Gordon, trust officer; Aubrey O. Dooley and T. T. Keller, as- sistant trust officers; Leon Tobriner, | general counsel: Arthur J. Linn, co |:mllcr and Miliard §. Yeatman, audi- or. Officers at branches: Pifteenth and H streets—Royfe E. Bolling, F. P. Harmon, jr, F. E. Ghiselli, vice presidents, and H. J. Donoghue, assistant cashier. Du- pont Circle—Luther E. Schreiner, vice president, and W. G. Baden, assistant cashier. ' Pennsylvania . avenue and Twentieth street—E. Gerstenberg, vice president. Brookland—J. L. Sherwood, vice president, and Willlam H. Martin, assistant cashier. SHORT SALES IN BANK STOCKS ARE SCORED {Public Confidence Should Not Be| Subject to Bear Attacks, Says Publisher. Short sales in bank stocks by specu- |lators, who for selfish gain undermine | | the faith of the public in banking in- | stitutions, should be legisiated against, | {contends 'Louis Guenther, publisher of | the Financial World, who says: | “One of the main objections voiced by conservative bankers to listing of ' bank stocks of the New York Stock Exchange was that they would be sub- jected. to chort s and such opera- tions would tend to undermine confi- dence in the stability of an institution subject to such an attack. Now the | bulk of transactions in bank stocks are handled in the over-the-counter mar- et “But short sales have been made even in this restricted market and in| one instance, it is claimed, with such | deadly effect that it produced a run on a bank which reached such proportions | that, for the protection of depositors, | the State had to close the institution | This run was precipitated over night and had its inception in a rumor spread throughout the financial community that there was not even a bid for the stock of this bank. “If there is any group of securities which should be absolved from short selling it is bank stocks. These insti- | tutions are too close to the people and | their safety ever to be assaiied by spec- | gains. A strict law carrying heavy pen- | alties should be enacted that would ef- fectively outlaw short sales in bank stocks. Public safety demands it.” ice president and counsel; A. E vice president and controller; H. M. Keyser, secretary assistant treas- urer and assistant counsel; A. M. Pisher, treasurer; Willlam L. Clarke, assistant _secretary-treasurer; H. W. Kelly, assistant sccretary. ‘The Executive Committee was elected, consisting of Clarence Bowen, V] G. N REGOVERY I TOGK PRIGE IS CHEGKED DURNG LAST WK Investors Display Feeling of Caution as Annual Reports Are Published. COMMERCIAL FAILURES COMPARATIVELY SMALL Trade Statistics Show Corrective Process Is Reducing Un- employment. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 17.—As Decem- ber was a month when suspensions of banks throughout the country developed pronounced fear among holders of securities, so are January and February likely to reflect the spirit of caution among investors over reports that cor- porations will be making in that period of their 1930 results and on account of the probable increase in the commercial mortality record. This has already had its effect on prices of stocks, which were off this week an average of near- Iy 10 points before recovery set in. Depression Term Passed. It is now the probable breadth of the depression, rather than its depth, that most concerns those who are studying the financial and industrial outlook. We have long since passed that term of 14 to 16 months which traditionally has marked the average length of a major business reaction and have nearly covered a range of two years since the declines in numer- ous low-priced industrial shates called attention to the fact that we were on the eve of a bear market. The receivership this week for the Richfield Oil Co. with labilities of $35,000,000, represents the greatest commercial disaster that has grown out of a period conspicuous for a decline in commodity prices and in the diffi- culties that corporations with an in- different credit have had in financing their requirements. It is surprising that with all the shrinkage in inven- tories, the loss of gross business, the cut in net profits and the banking re- sistance to commercial loans, except those of an exceptional character, there have not been a greater number of large-sized insolvencies in the busi- ness world. This, in itself, is testimony to the fact that business has been more con- servatively managed since 1921 and to- day has the benefit of a higher pro- portion of capital stock in its financial structure and less fixed obligations than in any of the earlier years of depression. Corrective Process Extended. Some progress is being made in cor- recting conditions that have been re- sponsible for the present difficulties. Current production figures of ofl and copper suggest a better control of the output of industries whose earnings have been shattered by price wars. There is again this week another increase in the percentage of iron and steel pro- duction. Reports come in day by day from different parts of the country of a pick-up in the activities in widely di- versified branches of trade. Perhaps these are more emphasized than others showing an opposite trend. On the basis of the minimum figures of unemployment at the end of 1930 there has been a 5 to 10 per cent return of workers to industry since the first of the year. The Bureau of Labor Sta- tistics has just made its report for De- cember. This shows that employment in the manufacturing industries last month was 18.2 per cent below Decem- ber, 1929. Of more significance is the fact that total pay rolls in December, 1930, were 26.8 per cent smaller than 12 months previous. This indicates that not only has the wage unit been lowered in many cases, but that a considerable number of workers are on part time. Cheapest Money in 50 Years. ‘Time money this week has been avail- able at the cheapest rate for six-month maturities in over 50 years. We have previously recorded the fact that such commodities as silver and sugar have touched the lowest prices in their his- tory, that wheat in this country has been selling at figures not duplicated in nearly 40 years, that copper has been at the lowest in 37 years, and that prices of a number of standard rail- road stocks last month were at levels that had not been witnesses in 40 years. We do not belicve that the entire ma- chinery of production and distribution has peen so much upset as to justify these conditions, nor that the channels of consumption have been stopped up to that extent where such prices will become permanent. They are the extreme manifestations of the extreme mood of a people that becomes depressed in proportion as it has been too greatly exhilarated. ‘Then there is the fact that the cur- rent spread between commercial paper rates and ylelds on stocks and that be- tween the yield on stocks and the re- turn on bonds is abnormal. Financial history proves that. under similar con- ditions, markets are approaching the period when they will begin to show permanent recovery. (Copyright. 1931 = - The Financial World advocates still greater publicity of corporate operations and greater clearness of corporate re- ports. “If the shareholder is, after all, the actual owner of the corporation, should he not have complete and ac- curate knowledge of the operations of his business?” asks the paper. “Or should this information be reserved ex- bering that the latter are in reality the employes of the shareholder?” ‘There is little room for complaint in the case of the railroad reports and those of the larger utlity companies, but “in the case of many of our industrial corporations, including some of the most | prominent ones, there still exists af tendency to make an annual report tell as little as possible to the shareholders, who, after all, are the real owners of the enterprise.” TOBACCO SALES FAR BELOW 1930 AVERAGE Special Dispatch to The Star. DANVILLE, Va., January 17.-—Dan- ville warehousemen and tobacco deal- ers estimate that leaf sales on the lo- cal market will total 48,000,000 pounds. Trade Trend and Outlook Chain Store Executive Sees End of Business Depres- sion in Revival of Purchases by the Public and Retail Merchants. BY H. T. PARSON. President of F. W. Woolworth Co., as told to J. V. Fitz Gerald. Special Dispatch to The Star. NEW YORK, January 17.—Inven-| torles were so reduced by the heavy volume of Christmas buying that re- tailers will soon be in the market for fresh goods to put on their shelves and counters. Once they begin to make the purchases they will need to carry on their business we will see an upturn that will surely, in the long run, take us out of the period of depression. The stocks on hand of the average merchant have been low for some months now. Hand-to-mouth buying by retailers has been the rule rather than the exception. Few shelves were overstocked when the holiday trade be- gan and they were pretty well cleaned out by the first of the year. Doubt and uncertainty as to the fu- ture, as well as the prospect of buying more advantageously in a falling mar- ket, prompted many merchants to go light on their purchases of stocks. Now they find themselves stocked lower than | ever and facing the probability that prices, instead of dropping more, will | gradually go up. \ | Curtailment of Purchases. Certainly it doesn't seem as if the | Ences the manufacturer is getting for | is goods can drop much lower and | permit him to carry on. If they should labor might have to be liquidated to allow the manufacturer to keep going. No one wants to see wage cuts come to pass. Such a happening would be a serious assault on our high standards of living. The old law of supply and demand, on which no one has yet found a way to get around, should take care of the situation. Thousands of families in the United States, who have in no way been affected by the depression of the past _year, have, nevertheless, curtailed purchases of wearing apparel, house- hold equipment and even certain of the necessities. This lessened demand. As soon as purchases fell off there was a halt in production. Now the goods that were made up and on hand have been greatly depleted. Likewise clothes, household equipment and the like have been wear- ing out. Soon there will be a constant- ly growing demand for manufactured articles. Once this demand comes in earnest, supply will have to catch up | with it. Because of this condition, it doesn't seem reasonable that prices will go very much lower. In fact, with the in- creased demand that seems destined to prevall in the near future, there is likely to come a gradual price raise. While depression has gripped the country for something more than a| year it must he remembered that a vast | majority of people suffered no loss of income through the lowering of wages. Although thcy have been reluctant to buy, their purchasing power has in no way been reduced. Soon they will have to satisfy actual needs through buying from the retailer, Improvement Noted. He in turn will have to purchase from the wholesaler who will send increased orders to the manufacturer. That means mills now closed, or operating on part time, will returr: to a normal basis. Im- provement is already noted in the tex- tile industry, which is taken by qualified observers as an almost certain indica- tion that better times are ahead. ‘We have suffered little diminution in real wealth. We have suffered largely through fear and hesitancy. This lack of confidence in the future has been largely responsible for holding back a return to normal conditions. Now there are abundant signs of returned courage in industry, which are in themselves in- dications that improvement is at hand. Many observers are optimtistic over | H. T. PARSON. the stock market outlook. They believe that this year will show a good, steady market rise. This, if it comes to pass, will be a factor also in brightening the business outlook But, after all, what we need most now 'is confidence—faith that the native resources of our country and the genius of our business leaders will soon show us the way to better _industrial conditions. If we have confidence, the other factors in a return to normal times will take care of themselves. While certain industries were hard hit during 1930, the chain store busi- ness didn't feel the pinch of depres- sion. The sales reported by 50 companies showed a decrease of only 0.56 per cent. The falling off in busi- ness for the full year amounts to only about 1 per cent. Such sales, with prices considerably lower than they were in 1920, show that many mcre goods were disposed of by the chain concerns than in the so-called boom year. Chain Store Outlook. Chain store executives, in view of the facts they have at hand, are opti- mistic as to the future. It seems as if they should be in an excellent position to judge business trends by reason of the distribution of their stores all over the country. Statistics. show that 18 of the companies increased the number of their employes over 1929 by more than 8 per cent and raised wages in the same period by more than 12 per cent. As to our own business, we are plan- ning to expand. We already have 15 stores under lease for opening this year and will add to this number as the opportunity presents itself. Our business abroad showed a nice increase in sales over the previous year, both in Great Britain and Germany. The expansion program of our foreign companies is being carried on vigorous- ly. We have at present 26 locations under lease in Great Britain and 7 under lease in Germany for 1931 addi- tions to present stores. During 1930 we opened 13 new stores in Germany and 53 in Great Britain. ‘This policy of expansion shows th'g we are fully confident that this will be a good year for retail business. (Copyright, 1931, by North American News- paper Alliance.) WHEAT VALUES DROP ON WEATHER NEWS Predictions of Rain in Domestic Territory Result in Selling Tactics. By the Associated Press. CHICAGO, January 17.—Wheat fell more than a cent a bushel ‘today and finished at the bottommost point reached this week. Other grains sym- pathized with wheat weakness, which ‘was more or less due to predictions of rain in domestic Winter wheat terri- tory that had been complaining of mois- ture shortage. Corn was also depressed by prospects of a record corn crop in Argentina and by Argentine corn prices that would permit Argentine corn heing delivered duty paid in the United States. Wheat traders gave attention to a statement credited to Chairman Legge of the Federal Farm Board that Amer- ica would never get rid of its excess wheat by selling it abroad, and that he suggested feeding of wheat to livestock in order to reduce the present wheat surplus. Sellers of wheat, however, contended that wheat feeding would not provide a remedy and that use of other corn substitutes such as oats were keep- ing prices down. Announcements of cheaper offerings of Argentine wheat at | Liverpool were also a subject of com- ment. | Corn went lower with wheat, but met with enlarged commission buying. and | showed power to rally. Oats followed corn With estimates that as many_as | 80,000 hogs would be received in Chi- cago Monday, provisions declined. COTTON PRICES FIRM CORN — | 2, | clusively for the management, remem- | U5 RAW SILK FUTURES NEW YORK, January 17 (Special).— | Raw silk futures were active and higher today. Commission house operators, dealer interests and houses with im- porting connections were buyers. Up- town operators appeared on both sides. Trade operators, Japanese interests and prominent cotton houses were sellers. t.h‘edmu Was nun;:!‘-hd by l-l“m‘;hy in Japanese market as well as «:pumhtlcpr':wm from the local mar- ets. MO00DY'S DIVIDEND. Moody’s Investors Service has de- Statistics show that to date this sea- chairman: Woodbury Brandenburg, e . W. Doolittle, Robert V. and Fleming, Wil- lism F. Ham . | son 36,746,321 pounds of the product . 'have been sold for $3,918,769.82, for an .67 cents which is at this average of 10. far below the average clared the regular quarterly dividend of 75 cents per share on the participal feren tock of the company, pay- '-fi.m:.:qunmum Pebruary 1. N ON SMALL TRADING Failure of Mill Labor Parley Has Little Effect on Market By the Associated Press. NEW YORK, January 17.—Trading in cotton continued quiet today, and prices fluctuated within a range of 4 or 5 points. = ‘The failure of the negotiations for a settlement of the labor disputes in the Lancashire Mills, making the lockout notices effective today, was disregarded in both the Liverpool and local mar- { kets, apparently, and the undertone was generally steady. After selling up to 10.23 at the start on some week end covering, March eased off to 10.18 and closed at 10.19, with the general mar- | ket closing steady net 1 point lower to 2 points higher. Close. Ja 14 nom 1 07 19-.32 4-/45 6 nuary, old nuary, ne March i ay July October’ December 10 10 10, 1044~ 106564 1081 10.97 nom. IN MONTGOMERY COUNTY Reports from Montgomery County, Md., banks show total deposits of $13,- 553,939.29 on December 31, 1930, the date of the last controller's call. 'This compares with deposits of $13,492,- 815.72 on the same date in 1929, a sub- | stantial increase. Deposits in each bank on December 31 follow, the Chevy Chase Savings Bank, although in Washington, being included in the list because of the large number of depos- itors who live in Montgomery County: Sandy Spring Savings Institu- oSl Lat s s ATHBTIBAONS National ‘Bank of ‘Sandy Ingeus o o 4 563 99 s Banking & ‘Trust Co. 1,392,147.08 Montgomery = County = National i G . 2.232,658.62 First National Bank of Gaith- orsbuEE .......... 33900042 Bank of Bethesda .. 841.000.8] Silver Spring National oma P b 437.380.0: 1,033,045.35 rust Co....... T 4111400 Citizens’ Bank of Takoma Par 175,543 Total .. $13,553 50 PER CENT EXTRA VOTED Directors of Minneapolis-Honeywell Regulator Co. have declared an extra dividend of 50 cents a share on the common stock and regular semi- annual dividend of $1.50 a share, both dividends payable February 14 to stock- holders of record February 3. LIFE INSURANCE SALES. NEW YORK, January 17 (#).—An analysis of 1930 life insurance sales made by the Mutual Benefit Life In- surance Co, of New York shows the number of persons insured last year iting | was practically equal to the previous FOREICN BUSINESS OUTLOOK CLOUDED BY LABOR TROUBLE Political Factors Also Exert Restraining Influence Upon Industrial Plans, WORLD SUGAR COMPACT NOW BELIEVED POSSIBLE British and French Renew Efforts to Restrain Useless Gold Flow. Special Dispatch to The Star. NEW YORK, January 17.—Cable dispatches to the Business Week give the following survey of business abroad for the week ending January 17: Europe.—Conditions are cngaia be- coming overcast after the first bright week of largely psychological optimism at the beginning of the year, Labor, and possible political, conflicts obscure the immediate outiook. induatrial activity remains generally restricted. Commodity markets are moving ir- regularly. ~ Though grains, vegetables, oils and hides arc somewhat stronger, industrial materials, especially metals, have manifested uncertainty. The Stocks and bond markets also are uneasy, notwithstanding the new strength of Young bond$ on all European markets and Brazilians in London on appointment of Sir Otto Niemeyer as financial adviser to the Banco do Brasil. Money, after some year end stringency, has greatly re- laxed, largely restoring pre-Christmas conditions. Favorable Developments. Several favorable developments are notable. The possibility of a world sugar agreement has been renewed fol- lowing the concession of a further sacrifice by Cuba of an unexpectedly large export quota to Germany though the solidarity of the Javans is as yet not assured. Negotiations betw-en officials of the British and French treasuries looking to closer coilaboration to check use- less gold movements are being continued. Authorities alrcady venture the prophecy that the ultimate purpose of these negotiations is probably, not only to establish a better equilibrium between money markets in the two countries, but to prepare the way for the long-contemplated loan conversion in England. Also, there are encouraging indications of greater investment loan activity, with definite moves to un- block French capital congestion. Far Eastern reportseare less favorable this week, but the Sharp midweek recovery of silver from its unprecedented low is greeted with great satisfaction as tend- ing to strengthen Eastern purchasing power and enable at least partial ful- fillment of requirements known defi- nitely to exist. ‘Widespread labor troubles have been the outstanding feature of the week, though so far they are serious only in England and Germany. Political Tensions. Business has been quick to sense, !'and with uneasiness, the renewed tight- | ening of inter-European political ten- ) sions. This is partly occasioned by the | approach of the next League Council meeting on January 19, when a number of inter-twined and knotty political and economic issues again come to the fore. German-Pole relations are grow- ing more bitter, and the question of war debts and Young plan revision is very much alive. Among the troublesome economic is- sues on the League of Nations program are tariffs and trade restrictions, re- gional trade preferences and the gold investigation. This last, at least so far as existing“conditions are to be exam- ined, Prance is anxious to block be- cause of the feeling that she is being unjustly accused of selfish hoarding. Although Germany is expected to under- take a more militant foreign policy, it 1s probable the country will risk provoking a critical situation. In the New Year message to_ the German government, President Hin- denburg singled out three objectives, all significant of the future: Reparations, protection of minorities and fulfill- ent of the disarmament promises of 'e allies. Wiggin's statement, which as been warmly seconded by Sir Josiah Stamp in England, tends to confirm these expectations. British Labor Troubles. London.—Trading is overshadowed by | the coal and cotton disputes. Individual markets are quiet. There is better inquiry for Manchester goods but no increase in business. The reduction in the price of Cleveland pig iron by 5s a ton is expected to lead to better trade against foreign competition. The fall in the price of hides has been arrested. Wheat is up. All provincial centers report a general feeling that commodi- ties have now reached a bottom and there is a general hopeful tone if no further labor or political troubles inter- fere. The Welsh coal negotiations, which broke down last weak end, were re- newed and broke again Monday, caus- ing intervention by the government. Separate interviews with miners and members of the ministry of mines and between owners and the ministry lasted 3 hours, and full committees on both sides are still negotiating through the government. There are some hopes of settlement before the week end. Paris—The trend of business con- tinues downward, as shown in declin- ing production indices, foreign irade, car loadings, railway receipts, tax re- turns, security values, higher unemploy- ment (now nearly 10,000), and a reflux of foreign labor. Currency inflation: has not yet been checked and the gold reserve, banknote circulation and sight obligations of the Bank of France all have reached mew record levels. Do- mestic prices have again turned up- ward under the influence of continued currency expansion, while the spread between wholesale and retail values has widened further. Wholesale prices at the year end stood 19 per cent above prewar levels; retail prices were up 32 per cent. Apart from these unfavor- able underlying trends, business proper has been featureless since the epidemic of actual or threatened bank failures ceased early in December. Indices Fairly Steady. Due to the uncertainty of the fiscal future, the new Steeg government in~ tends to shorten the original Tardieu equipment program and meet the costs by _supplementing treasury surpluses with federal and local bond issues. What expenditures can be postponed and which must be retained are still unknown. November industrial indices showed less change than was expected, declin- ing merely 1 t to 135 per cent of 1913 levels. , rubber and min. T | | | 4. | EDWARD F. COLLADAY, Who has been placed in charge of all fiduciary matters by the directors of the Second National Bank, succeeding the late Alexander Wolf. He has been the bank’s counsel for several years and is widely known in legal, civic and politi- cal circles. 934,000,000 SLUNP INNEW FINANCING Maryland Corporations Put Out Fewer Securities in 1930 Than in 1929, Special Dispatch to The St; BALTIMORE, Md., January 17.— Securities issued by public utilities of Maryland under the approval of the Public Service Commission were $34,- 000,000 less in 1930 than in the issues of the previous year, it is revealed in the annual report of the State regula- tory body, which is now being edited for publication. ‘The authority of the commission was grant:d to the utilities to issue securi- ties in the form of notes, stocks and bonds to a total value of $18,032,598.04. In 1929 the security issues had a total valuation of $52,347,000. The largest single issue permitted by the commission last year was that of the Consolidated Gas, Electric Light & Power_Co. for a bond issue of $7,500,~ 000. In the Fmvlous year the $25,000,- 000 convertible gold debenture notes of the Central Public Service Corporation held the highest monetary value, During 1930 the security issues which received the approval of the commission were from 15 different corporations, one more than in 1920. The issues were m among the 155 utllities which come under the jurisdiction of the commission and which have a total g;gflstgg’lnflon representation of $2,240,- In the utility classification there are 30 steam rallroad companies, 11 electric railroads, 44 electric light companies, 10 gas companies, 6 gas and electric corporations, 28 water companies, telephone companies, 2 telegraph com- panies, 3 express companies, 7 steam- boat groups, 5 bridge organizations, a sleeping car company and 2 other com- panies which do not come under any of these group heads, There were 184 corporations under the jurisdiction of the commission in 1929, but it was explained by members of the com “issic 1 tht the decredss in the numbcr for this year was: due to the merging of companies or by the purchase method. s LOW STORE STOCKS . AID TO BUSINESS Lower Prices Also Declared Vital Factor in Economic Readjust- ments Now Under Way. ‘Special Dispatch to The Star. NEW YORK, January 17.—Extreme- ly low inventories in department stores gmlneu situation, in the opinion of J. H. Lewis of Goodbody & Co., Wi points out that out of 19 classifications carried by the stores in November only (1) linens and handkerchiefs and (2) musical instruments and radios, show an Increase in stocks compared with the same month of the preceding year. Among the largest declines in inven- tories were (1) woolen goods, with 18 per cent; (2) silks and velvets, with 183 per cent; (3) luggage and other leather goods, with 14.6 per cent, and <4>tbook; and stationery, with 14.5 per cent. “With commodity prices the lowest since 1915,” says Mr. Lewis, “with retail food prices down to the low level of 1922, with the cost of living lower than at any time in the last 11 years and the purchasing power of the dollar the high- est since April, 1916, we have accom- plished much in the way of economic readjustments. When rents, retail prices and wages are further reduced, it will be : distinctly encouraging develop- ment,” ITALIANS PURCHASING AMERICAN SECURITIES Special Dispatch to The Star. NEW YORK, January 17.—A local brokerage house has received from Milan, Italy, an order to buy a long list of high-grade stocks and bonds of American railroads, industrial and util- resent an encouraging aspect to the | ried. CANADIAN: PREMIER GARRIES OUT PLANS FOR TARIFF WALLS Bennett Works Sixteen Hours a Day to Make Good His Election Promises. BUSINESS CONDITIONS ARE DECLARED WORSE Dislocation of Trade Machinery Laid to Policies of New Regime. BY JOHN F. SINCLAIR. Special Dispatch to The Star. OTTAWA, Ont., January 17.—This snow-covered capital of Canada s thinking things over. “The morning after” has come, and business looks &ray, uninviting and even bleak. The new Conservative government is in the saddle. In fact, there is only one man who speaks with authority— R. B. Bennett, the former Calgary lawyer, rich, 60 years old and a bach- elor who succeeded another bachelor, MacKenzie King, as premier. Premier Bennett rules with an iron hand. He makes the decisions, and his cabinet carries out his instructions. Not since war time has Canada been ruled by a man of such determination and vigor. He returned only recently from London, where his fearless ch{mpmn- ship of Canadian high protection at- tracted general attention. The British regarded him as more nearly typifying a super-salesman for the United States than as a prime minister of one of their dominions, but he made his point urad told the British that Canada was going to be for the Canadians in the future. Election Promises, Now he is back in Ottawa, and what & job he has to make good on his election promises! But he has started in earnest and is working 16 hours a day .to .fulfill his pledges. One promise, for example, was that. if elected he would put up tariff walls high .enough -to .prevent foreign goods from being dumped into Canada, and thus .modify, if not abolish entirely; unemployment. . He said he would compel ‘every foreign company that desires to share in Canadian business to establish a factory in Canada and employ Canadians. The-people put him in power. They gave bis.a majority in Parliament, and he lost-no time in getting started. He selected his cabinet—all except that of finance minister, which position he took over in addition to being premier. Im- mediately he put up tariff walls by one stroke of his pen. Such things are done in Canada. He worked fast—he. cut red tape and went after matters with hammer and tongs. He played no favorites. Courage is his middle name. Even his old friends complain that he has ignored their pleas and has decided his course of action without help or advice ‘from any quarter. And what has happened? Mr. Ben- nett may not be to blame if the facts are that business conditions are worse now than when he took charge of the Government, but they are. Bank clear~ ings are lower; wheat prices are at & record low; pulp and paper rts are down; factories are working less men and the number of unemployed is larger than it has been in 10 years. Not only that, but the people have learned that getting new factories into Canada does not always work out to advantage. Take the case of one large American soup company. After the Bennet high tariff was slapped on, this company decided to come into Canada and manufacture its own products. Because the company is so well known and its product so well advertised, the Canadian canneries are up in arms. They.. believe sgeh competition will seriously injure fneir own business, for this:American company has advertised extensively throughout the Dominion during the last 20 years. Typical Case Cited. Or take the case of a famous British chocdlate ranufactirer ‘'who has made atfatigements to open a large chocolate factory in Canada to manufacture his owa. products. So anxious and wore have -the Canadian com be- come .that they have appealed to the ho | government to do something about it or the real Canadian companies abstroyed: e A high tariff wall does not always succeed. in only keeping goods out of the - country. It oftentimes dislocates the machinery of trade to a point where it - destroys its effectiveness. The United States has certainly learned this lessen in the last year. Canada, too, is learning the same lesson. A tariff wall is Mke a two-edged sword; it is just as sharp on one side as on the other. Crop Diversification. Mr. Western Farmer, diversify. This is the advice of Sir John Aird, presi- dent of the Canadian Bank of Com- merce, to the hard-pressed, worried and harassed farmers in the Western provinces of the Dominion. _Sir John believes Russia will be & big export wheat factor from now on, that kuropean countries, under mod- €rn methods, will raise more of their own wheat than ever and that Man- churia and Northern China will be- come major sources of supply of for eign wheat for Japan, China and the Far East. So he wants the Western farmers to look such facts in the face and plan their future accordingly. He thinks the wiser of them will begin im- mediately to make the change, just as the farmers in Minnesota have done in the last 20 years. IUs their one big opportunity. ity companies. The order totals ap- proximately $160,000 and comes from Italian investors. This is the second such order received by the same firm from Milan recently, bringing the total to around $350,000, or approximately 7,000,000 lira. gical, engineering, building and paper declined. Berlin—The optimistic tone which marked the first days of the new year already has gone, though business is relieved at the settlement of the Ruhr coal wage dispute and gratified at the German success in the Berlin sugar negotiations which resulted in a Ger- man export quota for the next five fem of almost double the amount al- lowed in the original Chadbourne plan. ent store sales in November were the lowest in 1930 and 14 per cent below the volume in November, 1929. Indicative of their growing ity is the remarkable of one- price stores. Four leading chains, in- cluding the Woolworth subsidiary in Germany, increased sales 58 per -cent last year ¢ 929 1s int n the combina- Iro nd German Plan Not So Easy. But it is noteso easy to diversify: Western Canada, on the whole, has no such fertile land, abundant moisture or rich markets as the farmers of Minnesota. _Besides a_very large per- centage of Canadian Western farms are already heavily mortgaged, taxes are high and the farmers themselves have little. or no credit with which to change from one line into another. It is an admirable suggestion and a safe one for a banker to make. But it will take money and 20 years under favorable conditions to make it effece tive. Half of Western Canada could starve to death in the meantime, The Toronto Financial Post takes issue with Sir John on the main issue and announces that after an exhaustive survey of the wheat situation it finds that the West all nations in growing wheat. Because, the Post says, Canade owm raise wheat cheaper and prodnce m finer quality than any other ratiom. Canada, with a population ol = 000,000, raises about 400,000,000 bushels annually and exr:o‘na 300,000,000. The United States, th a populat 120,000,