Evening Star Newspaper, February 10, 1931, Page 12

A—12 ¥ INDUSTRIAL GAINS SEEN BY JOURNAL Magazine of American Bank- ers Finds Signs of Busi- ness Upturn, Spectal Dispatch to The Star. NEW YORK, February 10.—Definite gains in industrial activity are now be- ginning to appear, the American Bank- ers’ Assoclation Journal declares in its monthly review of business. “Steel production increased from 25 per cent of capacity at the end of De- cember to 50 per cent at the start of February,” the Journal says. ‘“Auto- mobile output is being expanded con- servatively and some authorities believe the forecasts of 4,000,000 vehicles in 1931 are too low. The building pro- is not expected to exc 1930, ut will be better balanced. A number or industries are now speeding up after their price cuts, such as shoes, rubher tires and the textiles. Others are steadily strengthening their position through adherence to curtailment, such as copper mining, petroleum, sugar and Ppaper. “In financial circles there is a dis- tinctly better feeling, based on the mod- erate rise in the stock market, the ease of interest rates, further liquidation of loans and evidence that rural bank failures have passed the epidemic stage. Resources of the Federal Reserve system are practically untouched, whereas fol- lowing the 1921 depression member banks were borrowing more than $2,- 000,000,000. Bond prices have made a marked recovery and the character of new issues in 1930 and 1931 shows that the number given high “ratings” is double that in 1929. Savings deposits have enjoyed a notable increase during recent months and year end statements of the finance companies show that in- stallment credit has weathered the storm in excellent fashion. “There is another side to the pic- ture, comprising a fairly extensive list mer price: Shirts lar and collar attached attached Shirts, Plain white and colors Mufflers mere. $2 and $2.50 grades. NOW. $3.50 to $5 grades. NOW. Small Lot of Soft Hats Final Reductions in of items that reflect past conditions or special. situations that have not yet been corrected. Industrial earnings nutemenu reveal & decrease from 1929, a ng 35 to per cent, and if the results for the third and fourth quarters be studied alone they ;how a uc& worse oondmo::o l',hnh d: gures for the year as a whole. has had a striking effect on the so- called ‘“equity” of common shares, which participate in the profits after preferred dmdend charges, and the “price urnln’p tios” based on the last half of 1930 Lnd probable earn- ings in the first half of 1931 do not appear promising. Dividend omissions are still numerous and commercial failures continue at a high rate, although this is but the mwnl after- math of business d “In addition to unflvnnhle condi- tions in numerous domestic industries, continued large unemployment and persistent weakness in commodity prices. Congress has added to the spirit of unrest by its inability to agree upon routine and relief legislation and talk of an extra session and, finally, its evident determination to adopt the soldiers’ bonus proposal with little re- gard for the Treusur{ situation. World conditions are ill generally de- Erewed with no important country aving emerged thus far and the low price_of silver seriously affecting the Far East. Under these circumstances, and considering the tariff barriers erected during recent years, the slump in international trade was inevitable.” SUN LIFE ANNOUNCES BEST INSURANCE YEAR Special Dispatch to The Star. MONTREAL, February 10.—The Sun Life Insurance Co. of Canada, at its annual meeting today, reported $705,- | 3. 000,000 in new business written during the year, an increase of 8 per cent over 1929. Over $25,000,000 was paid or allotted in dividends during the year, an increase of $3,000,000. Life insurance in force at the end of 1930 was $2,863,000,000, a substantial in- crease over the 1929 figures. ‘The annual report stated that busi- ness in group insurance has made a new record in 1930. President T. B. Macauley sald the first stage in the comeback of world business had al Mode $3.50, $4 and $5 Shirts, separate col- 3 for $7.00 Mode $2, $2.50 and $3 Fancy Shirts, sepa- rate collar and collar $2.50 Dundee Poplin plain shades, collar attached.$].69 3 for $4.75 $2.50 Glenbrook Non- shrinkable Broadcloth Shirts, collar attach- ed and neckband. ..$1.69 3 for $4.75 Southampton Broad- cloth Shirts, the finest of the imported; col- larattachedand neckband. White 3 for $8.00 Final Reductions in Fancy silk and cash- $1.19 5239 Henry Heath and Finchley Were $8 and 510 HE EVENING STAR, WASHINGTON, INTEREST OF PUBLIC IN MARKET INCREASES Special Dispatch to The Star. NEW YORK, February 10.—Commis- sion houses with wire systems leading into all parts of the country report a decided increase in public interest in | A Co. will be loyment of additional men. W. G. investment | 175 uss, president, told stockhoiders at Washington Produce Butter—One-pound prints, 33a34: tub, 32a33. Eggs—Hennery, ceipts, 18. Poultry, alive—Turkeys, young, 35a 36; old, 30a32; ?l;lurh:mckem 2!‘30 19a20; current re- , 15; roosters, 1. ind young, 60a A Dressed — Turkeys, ymmg 40a42; old, 353 ens, 33; Leghorns, 1 45; hens, heavy, 22a23; small, 20a21; capons, large, 37a38; small, 32a33: ducks, 24a25; roosters, 15; keats, young, 70a80: old, 40a45. Meats—Fresh killed, beef, 14a22; veal, 18a21; lamb, 21; pork loins, 16a18; fresh hams, 20; fresh shoulders, 14; smoked hams, 22a24; smoked nl-mulder!. 13al4; strip bacon, 23a34; lard, in bulk, 912a10; in packages, 10a10';. Live stock—Calves, 10.00; lambs, 8.00; hogs, heavy, light, 8.00a8.40. P‘rulh—s'—rl'lberfl‘ ing_brollers, 45a50; honey- md‘v . wngennu 1.7582.2! :mperors, kegs, 5.00; apples, hushel blsk!u 1.00a2.00; box stock, 2.00a3.00; pears, box stock, 3.50a3.75; cranberries, 25-pound box, 3.50; pineapples, 4.008 4.50; limes. per 100, 2.00. Vegeiables — Potatoes, 150 - pound sacks, 3.25; new potatoes, Florida, 2.00a 2.50, mostly 2.50; Idaho bakers, 100 pounds, 2.75; sweets, per bushel, 1.50a 2.00; caulifiower, 2.25: string beans, 3.00a5.00: limas, 9.50a10.00; eggplant, 4.50; peppers, 3.00a3.50; broccoli, cabbage, mew, per hamper, 90 -pound sacks, 125; , pes sack, 125a1.50; Iceberg, 3.00a3.50; Fiorida 1.50a1.75; spinach, 1.00a1.25; .25; rooms, 75a1.00; squ: h, per barrel, 3.50a4.00; cucumbers, Florida, hot house, per dozen, 1.25a1.50; toma- toes, repacks, 12 size, 3.2583.50; peas, 3.50a3.75. o Merchant-Farmer il)end. LYNCHBURG, Va., February 10 (Spe- cial).—John E. Johnson, 63 years old, merchant and farmer at Wingina, died " at Virginia Baptist Hospital here. Clearance Climaxes We are making the deepest of the deep reductions now—and you'll find the revised prices marvelously interesting—for you have choice of so many things you'll be needing right now—together with others in which the investment is well worth considering. Now Is Your BIG Opportunity All Suits, Overcoats & T opcoats Embracing Fashion Park and Mode—and regardless of for- Good assortment of sizes—but while there are not all sizes in every lot—there are many styles in your size from which to choose —and none reserved except Full Dress. ‘ Necessary alterations at actual cost. Final Reductions in Neckwear Those exclusive pat- terns and selective silks for which Mode Neck- wear is famous. $1 grade. NOW..30¢ 3 for $1.00 $1.50, $2 and $2.50 grades. NOW..80¢ 3 for $2.50 $3, $3.50 and $4 grades. NOW. .§$].79 3 for 85 Final Reductions in Hosiery 75c and $1 Silk and Wool, and Fancy Ra\on and Lisle 3 for $1.00 The finer grades also radically reduced. Final Reductions in Pajamas $2 and $2.50 grades. NOW. .§1.39 3 for $4.00 $3, $3.50 and $4 grades. NOW. .$2.19 3 for $6.00 $5, $6, $7 and $8 grades. NOW. .§3.39 3 for $9.00 Small Lot of Linen Street Vests Broken Sizes of 310 Grade Final Reductions in Underwear $1 and $1.50 Mode Mad- Celanese and Rayon $2 and $2.50 Celanese $1 and $1. Lot of pure silk Under- Final Reductions in $5, $6 and $9 Robes— $12, 815, Sizes 7 and 7Y Only ras Athletic Union Suits. NOW...79¢ 3 for $2.25 “Shorts.” NOW.59¢ 3 for $1.50 Athletic Union Suits. And Lisle Union Suits, with half sleeves and knee length, Size 40 only. NOW 95¢ 0 Pull-over Athletic Undershirts; medium and light weight. Size 40 only, NOW ..39¢ 3 for $1.00 shirts; glove and crepe — athletic coat style. White and col- ors. Were $5, §]129 Lounging Robes blanket, terry, etc. and $16.50 Robes flannel, bro- cades; etc. NOW . 15689 Small Lot of Mark Cross Buckskin Gloves Were $4.50 securities in the last few days. This is not all of an character, however. that many small operators have been trying to recoup losses on the long side of the stock market by Having be:{l nn&:nl edbm,lfi\ t] became equally unbalanc P um judgment on the bear side. represent an element that has little courage and 1s already showing signs of panic over the sudden upward turn in prices. The public that buys stocks when they are extremely weak is out of the market; there is another considerably body of buyers who always wait until prices seem to have stabilized at a higher level ‘making They have not yet been heard from, TO0NTS0; medium and| oo oTERN MARYLAND RWY. BALTIMORE, February 10 (Special). —The Western Maryland Railway Co. " | completed the first month of 1931 with gross revenue 13 per cent below that of the first month of 1930, according to estimated figures, just made public by officials of the road. Gross revenue for the full four weeks of January amounted to $1,360,277.89, as compared with $1,562,927.16 in Janu- ary, 1930, a decrease of $202,649.27. In this period the only source of revenue that showed any improvement over the preceding year was that received from miscellaneous sources; this jumped $6,- 057.84, or 19 per cent. Lard substitutes are being made from .| copra_in Trinidad. A NEW INVES\TMEN.T' D By the Associated Press AKRON, Ohio, empl It Is well known|ihe annual meeting. Mr. Klauss salf The: on the other hand, per cent. 650,741 in_ 1930. totaled $18,867. their commitments. est portion of the even st exuung prices. yesterday. 25 centimes. francs 49% centimes. INCREASED PRODUCTION Pebruary 10.—Pro- duction at the Mogadore, Ohio, plant of the India Tire & Rubber Co. will be the company, one |strated by court approval of the pro- ‘selling of the smaller and younger units in €| the industry, is in a “very strong finan- cial condition, with total current assets of $1,671,333 against current liabilities Y| of $308,323, or a ratio of six to one.” Reporting on 1930, he said that all bank indebtedness had been wiped out and noted that although sales of re- placement tire units in the industry |of interference by showed a combined decrease of 17 per cent, India sales decreased only Net sales amounted to $3.- Operating profit ‘The company, which draws the larg- business from bus and commercial car operators, starts the new year under favorabe condi- tions, Mr. Klauss said. Improved plant operations, reduction of overhead to a minimum and economies to be effected under heavier production will enable tne company, the president said, to show a decided improvement in 1931, PAB,IS BOURSE PRICES. PARIS, February 10 (#). — Trading | solution case. The explanation for the was active on the Bourse today in re- | divergency of result lies in the fact that sponse to the strength in Wall Street|economic conditions in the production, Three per cent rentes, 89 francs 10 centimes. Five per cent loan, 102 francs TUESDAY, FEBRUARY 10, 1931. RUBBER FIRM PLANNING (ANTI-TRUST LAWS LIBERALLY CONSTRUED IN OIL FIRM CASE was dissolved. During the 320 since then competition in the neld hn construe and apply the anti-trust stat- | Fro: dlssanton: pur aug” Srincipelly to the growth of other eomm"mt.s. new iction and selling and a arger market. Competition in the oil industry 20 years ago non-existent. Changed Conditions. In view of this material change the decision that com mlon in the pres- Standard Ol dissolution decree has also | o ¢ e, o &e be restrained | 900 BY DEAN DINWOODEY. That the Federal courts will llbenlly utes in the light of changing economic conditions has been further demon- posed merger of the Standard Oil Co. of New York and the Vacuum Oil Co. The decision of the three judges of | ceen. the Circuit Court of Appeals at St. Louis that the union of the two com- panies would not violate the famous again to allay any apprehension the courts with busi- | b the ness consolidations in flelds which, de- 51, | spite such mergers, will remain com- petitive. Decision Not Inconsistent. In 1911 the Supreme Court of the United States declared that the Stand- ard Oil combination then constituted | oo an illegal combination under the Sher- man anti-trust law. Today the merger Court. found not only to be legal but not con- trary to the 1911 decree. These seemingly eonu-dlcmry re- suts are not, in fact, inconsistent, nor | did the lower Federal Court, in deciding the Socony-Vacuum case, decline to follow the principles announced by the Supreme Court in the Standard OH dis- laws. distribution and sale of petroleum and its products have materially changed in the last 20 years. In the dissolution case, the Supreme exist until the old Standard Oil group proposed mer sistent with the ruling of the Supreme 1t is concelvable that & similar | 'R0 decision might be reached relative to the talked-of consolidaf Standard Oil units. This factor of changed economie con- ditions recently led Court, wln the pnc';en c::‘n:n decree se, remove e restrictions pro- &1‘“{," the 'a'“"“;;":'.‘f“"" from dis- estimated at $30,746, uf AN W In| of two units of that combination is|fo0q pr%‘uucu Ten years n\s it had been determined that this would likely re- strain trade and violate ‘the anti-trust Today, bumnem situation, it is held to be legal. Thus the courts, in step with modern business trends, may so apply the visions of the trust statutes as to ate any radical change by Congress in these laws. The Supreme Court, how- ever, has yet to make the, final de- termination in such matters, so far as| the Federal Should a_decision by that tribunal be A = contrary to those reached in the lower courts action by Con Exchange on London, 123 francs 96!, | Court determined that competitive con- | session, centimes. The dollar was quoted at 25 | ditions in the ofl industry would not| Hoover, may be awaited The Department of Justice has not as P only because of was practically Competition today 1is TOTAL IS MAINT Bpecial Dispatch to The Star. 1! not incon- tion of other another Federal| "y 10001 value of all live Maryland at the nmm ol non-meat | DEATIY $10,000,000 from 616.,000. Heifers, 1 to 2 years from 29,000 head to 30,000, but of young hel!m Be saved cows dropped ,000 head. There Ihfl ‘WAS some because of a changed ary 1 this year was nooo ( were held a year ago. tllxdnumberu was in phu judiciary is concerned. On the ground that the plan at_its next | gambling, city officials of G by President | land, recently stopped a by a school to raise funds children. CREATED TO PROFIT FROM TODAY’S CONDITIONS SpecIALISTS for 15 years in chain store financing, we have watched this industry grow to its present size and importance —and have contributed to its growth. Three times as big as it was 10 years ago, the chain store industry today transacts 169 of the nation’s retail merchandising—a volume of $6,500,000,000. And conservative authorities predict a doubling of this volume within 10 years. The chain system of merchandising has supplied a method of distribution that has become essential to mass production. Its remarkable development is based on the firm foundation of service to the consumer and service to the manufacturer. Growth has been inherently sound. For years the chain-stores have ploughed back into their indiyidual businesses for future development from 409, to 60% of net earnings—a greater proportion of net earnings on common stock than any other industry. Recent months have afforded proof of our long-held conviction that in times of depression the chain stores are benefited by greater patronage than ever. Dealing primarily in necessities, tonnage volume of the chains is today the greatest in history. Dollar volume is only slightly off, due to lower prices. Earnings are less affected than in most indus. tries. Inventories have been written down in line with commodity prices. Extensions have been consolidated, mana- gerial economies effected, and an army of new patrons has been won. The chain store industry now stands prepared to take full advantage of improving conditions. The assets, number of stores, sales and profits have greatly increased since 1925. Yet, chain store stocks are today at approximately the low average prices of that year! These facts permit us now to offer investors ap unusual opportunity to share in the profits and growth of a selected list of chain store companies. CHAIN STORE SHAREOWNERS, INC., is keyed to the moment. In form, safety, yield, and enhancement possibili. ties, we believe it will stand the closest analysis, Important details of this issue are given on this page. This stock is offered subject to complete statement in the offering circular. $15.25 per share. DISTRIBUTORS, For further information consult your bank or investment dealer, or write to us direct. Price, at the market, about MERRILL, LYNCH & CoO. 40 HAI.L STREET, NEW YORK CITY m Chain Store Shareowners, Inc. . . . one class of stock . .. common . . . with full voting rights 1. CORPORATE FORM ... This is a simple corporation with powers limited to the functions necessary to provide, through its common stock, a diversified investment in the common stocks of a selected list of Chain Store companies. Investors will enjoy full voting privileges, including the election of directors and amendment of the charter. 2. UNIT OF SHARES .. . Each 100 shares of Chain Store Shareowners, Inc., will initially represent one share each of the common stocks of the 35 companies listed below, and $100 for capital and reserves for operating and adver- tising expenses. A single share will represent a 1% int in one share each of the common stocks of these compa plus a proportionate interest in the cash and other assets of the Corporation. Apparel Chains W. T. Grant Company Lane Bryant, Inc. Loblaw Groceterias Co, Lerner Stores Corporation Limited Oppenheim, Collins & Co., Inc. MacMarr Stores, Inc. 3. C. Penney Company National Tea Co. 2 Daniel Reeves, Inc. Drug Chaine Safeway Stores, Incorporated Drugs Incorporated (Liggett, Rexall, Owl, Boots) Mail Order Chains Peoples Drug Stores, Montgomery Ward & Co, Incorporated Incorporated ‘Walgreen Co. Sears, Roebuck and Co. § and 10c Chains Restaurant Chains F. & W. Grand-Silver Childs Company Stores Inc. Frank G. Shattuck Company 8. S. Kresge Company (Schrafft’s) §. H. Kress and Company John R. Thompson Co. McCrory Stores Corporation Waldorf System Incorporated J. J. Newberry Co. n Shoe Chains Neisner Brothers, Inc. F. W. Woolworth Co. Diamond Shoe Corporation f Melville Shoe Corporation Grocery Chains American Stores Company ~ Sporting Goods and Dominion Stores Limited ~ Auto Supply Chains First National Stores Inc. A. G. Spalding & Bros. The Kroger Grocery & Western Auto Supply Company Baking Company 8. SUBSTITUTION ... Any one of these stocks may be eliminated at any time by sale upon order of the directors. ‘The net proceeds from such sale will be distributed in accordance with the provisions of the charter. Stock may be substituted only by amendment of the charter upon vote of a majority of the outstanding shares. 4. DIVERSIFICATION . .. The 35 companies represent tep types of businesses, dealing in groceries, meats, wear- ing apparel, household furnishings, drugs, shoes, dry goods, The Great Atlantic & Pacific Tea Company of America HAIN STORE SHAREOWNERS automobile supplies, sporting goods, restaurants, § and 10¢ articles—practically all kinds of essential merchandise. These companies have over 40,000 stores located in all parts of the country, in large cities and small towns. 5. CONVERSION . .. Any holder of 100 shares of Chain Store Shareowners, Inc., may exchange his shares for the underlying stocks and cash upon the terms, and subject to the conditions, set forth in the charter. 6. MARKETABILITY ... These shares should have ready marketability because of the market existing for the 35 underlying stocks into which they are convertible as above stated. To provide a prompt repuschase market, the orig- ators, Merrill, Lynch & Co., expect to maintain a regular price not more than 5% below the current offering price. 7. DIVIDENDS . . . Dividends will be payable February 15 and August 15 of each year, commencing August 15, 1931 Cash dividends on the common stocks represented by each share of Chain Store Shareowners, Inc., are at present at the rate of 72c per annum, including extras. Stock di dends, at present market prices, are at the rate of 4c. is equivalent to a yield of about 5% at the present offering price. 8. RECORD OF THE 35 COMPANIES Total profit Profits Cash Total sales for per share dividends Common of C.S.5., per share of Tme. C.S.S.,Ine 31,247 $2,392,624,524 $135,884,159 $0.92 $029 33472 2,879,056288 159,914,323 108 035 38,163 3,456,666,237 190,670,268 1928 132 043 1929 41,455 4,084,693,280 207,050,183 149 0.60 The above profits and dividends per share of Chain Store Shareowners, Inc., have been computed for each year for each company on the number of shares of such company outstanding at the end of the 1929 fiscal year. The total earnings for these four years have been nearly three times the cash dividends paid. 9. PRICE BASIS . .. The offering price of the shares will be based on the current full-lot market prices of the under- lying stocks with brokerage commissions, the amount of $1 per share paid in as capital and reserves, and the pro- portionate aggregate amount of the accumulations, plus a chi not exceeding 7% of the offering price for expe! of incorpor: cost of distribution and profit. For convenience the offering price will be adjusted to the nearest one-eighth. Investment Restrictions . . . The by-laws provide that the Board of Directors may invest the reserve and other funds of the Corporation only in call loans, United States Gov- ?o jons, and investments suthorized for New Stores 1926 1927 Taxes . . . Under the present Federal Income Tax Law, dividends received by Chain Store Shareowners, Inc., will be free from tax. Dividends (other than distributions in liquidations) paid by Chain Store Shareowners, Inc. to its shareowners will be free from the normal tax. Custodian . . . The underlying securities will be depos ited with and held by the Commercial Trust Company of New Jersey. This Trust Company will also collect and be depositary for all income for the Corporation. Disbursing Agent . . . The Corporation Trust Company of New Jersey. Auditors . . . Messrs. Peat, Marwick, Mitchell & Co. of New York will check the securities and audit the accounts of the Corporation semi-annually, which reports will be available to the shareholders. Transfer Agent ... The Corporation Trust Co., New York. Registrar .. . Bankers Trust Company, New York. Board of Directors of CHAIN STORE SHAREOWNERS, INC. Crances E. Meran, Chairman Partner, Merrill, Lynch & Co.. . .New York, N. Y, Cuanees F. Avams Treasurer, First National Stores, Inc. . . Boston, Mase, Luicr Cuscuoro Associated with Merrill, Lynch & Co. . New York, N. Yo Do~ A. Davis President, Western Auto Supply Co. . MarcoLm G. Gisss President, Peoples Drug Stores, Inc. . Washington, D. G, Epwarp Grots Vice-President, Commercial Trust Co. of New Jersey, Jersey City, N. J. Epmunp C. Lynen Partner, Merrill, Lynch & Co.. . .New York, N. Y, Kennern K. McLaren Pres., Corporation Trust Co. of N. Y. . New York, N. Y. Frevenick W. Nasu Partner, Merrill, Lynch & Co.. . .New York, N. Y. SPONSORS ... Merrill, Lynch & Co., 40 Wall Street, New York City, who during the last 15 years have sponsored 57 ues of Chain Stores Securities, including a number of these companies, in which they continue to have a sub- stantial interest. Lecar Proczzoincs have been approved by Messrs. Chad- bourne, Hunt, Jaeckel and Brown, New York. Kansas City, Mo, YOUR LOCAL INVESTMENT DEALER OR BANK CAN GIVE YOU FULL DETAILS Crane, Parris & Co. 821 15th St. N.W. Strond, Kurtz & Co., Inc. Transpgitation Building A. S. Goulden & Co. Woodward Building H Robert C. Jones & Co. T Shoreham Building Waggaman, Brawner 17001 St. N.W. MARYLAND LIVE STOCK AINED stock in 1931 was un value of live stock & year ago was $39,- for wnoon the number of steers over 1 year old. The number of swine on hand Janu- mn test cut months involved , Scot- started for poor