Evening Star Newspaper, June 7, 1931, Page 61

News of Markets Pages 1to § - 'FINANCIAL AND CLASSIFIED - The Sunday Star -— Part 6—12 Pages WASHINGTON, D. C, BROKERS HERE CUT MARGINS IN MOVE TOHELP BUSINESS New Schedules Are Much Like Those Recently Adopt- ed in New York. CONVENTION PROGRAM FEATURES ANNOUNCED| Host of Young Bankers to Visit Washington Today on Way to Pittsburgh. RBY EDWARD C. STO: Washington brokerage houses have made cuts in margin requirements simi- lar to those recently announced in New York. Most of the broker offices here Birthday Nears LOCAL FINANCIER WILL BE 75 ON JUNE 10. CLARENCE F. NORMENT, SR, | The chairman of the board of the Na- tional Bank of Washington and also | of the Norfolk & Washington Steam- boat Co. has been cne of the Capital's have liberalized their requirements to customers and are now requiring but 20 per cent margins where they have: been_asking 25 per cent. Officials in local offices which have! not made the cut to 20 per cent say they consider it in the interest of the customer to keep the 25 per ccnt mar- gin rule. This gives the customer a! five-point leeway in cas> the market| sells off. 1In case of 20 per cent mar- | gins, these brokers state, it would be Decessary to send out margin calls on | every little decline. The reduction in margins required in | local brokerage houses has not been made all at one time. Demands of the different firms vary, but all have bcen making things more attractiv> to cus- tomers for several months. The first step was taken more than a year ago. Whep prices were mounting ~skyward and the Stock Exchange offices were swamped with business, local brokers made a rule to handle nothing smaller than 50-share lots. Small Traders Welcomed. Officials claimed they could not af- ford to handle smaller orders, as the small lots tied up the big orders and worked to the disadvantage of the big custoners. But times have changed! As stocks worked lower and lower, in order to stimulate business, the 50-share rule was changed to 25 shares. Later this was lowered still further, until practically every broker house in the clty will now handle 10-share orders. | Several of the firms, however, have | retained the minimum charge of $5 on| small orders, although the banks get a | lower rate. This $5 charze puts a curb on extensive trading in very small lots, since on fractional moves the buying and selling commissions make a severe | d-nt in the profits. In some instances, | however, the minimum commission has recently been cut to $3. Some brokers have liberalized their | margin _requirements on low-priced ! stocks. Until recently they refused to| permit margin trading in any stocks selling below $10 per share. In some ! instances, this rule has- been changed | to permit margin deals in issues selling | as low as $6 a share. In cases where these margined stocks drop below $6 | »a shhre, the customer is expected to buy | them outright or dispose of them. Margin Requirements Differ. In stating that margins have been eut from 25 to 20 per cent, the an- nouncement should be somewhat quali- fied. In most cases it applies only to stocks selling above $25 a share. In many instances stocks selling below $25 call for a margin of $5 a share. Some houses require a 5 point margin be- tween $10 and $25 a share and 50 per cent of the market value between $5| and 910 a share. Some New York Stock Exchange firms have fixed the 5-point require- | ments on stocks selling between $7 and | $25 a share. In one or more instances $¢ & ahare has been fixed on “acceptable” stocks selling between $5 and $20 a, share. In most instances reductions have been made in margins on Curb | _#s well as those on the “big| Slight _differences are found among the local offices, each one having its | own way of doing business, But | through the Washington Ticker Club, in which 17 different firms are mem- bers, efforts are constantly being made o make the rules as near uniform as | possiBle. The aim of the changes is to | stimulate business and small lots can | be handled in dull times when thev could not be in a bull market; at least, they might not be. Convention Features Announced. Final plans for the entertainment of the delegates and guests at the Thir- teenth Annual Convention of the Dis- trict of Columbia Bankers' Association at Hot Springs, Va, have been an- nounced by Thomas' J. Groom, vice | president of the Bank of Commerce and | Savings and chairman of that commit- | e ¥ | | For three evenings during the con- vention arrangements have been made to have dancing in the crystal room from 10 to 12. The Homestead is equip- ped with a motion picture theater, and on Friday, June 19, through a special | courtesy of Warner Brothers, there will be released a picture in advance of its official national release date. On Saturday evening the family din- ner will be held, which has always been the outstanding entertainment event. ‘The committee has been working toward preparing a special program which will be unusually unique in its general ar- rangement. = Prizes for the various sports events will be announced at the dinner. In addition to Chairman Groom, the members of the Entertainment Com- mittee include: W. W. Spaid, vice chairman; L. A. Slaughter, F. W. Mac- Kenzie, Edward E. Swan, James A.| Soper and Thomas W. Brahany. 150 Visitors Due Here Today. ‘Washington Chapter. American Insti- tute of Banking. will be host to 150 or 175 delegates today, the visitors being on their way to the national conven- tion of the association at Pittsburgh. While here the delegation will visit . Arlington Cemetery and place a wreath on the Tomb of the Unknown Soldler, the ceremony taking place at 4:45. It will be the first time the organization, which is made up of thousands of panking students all over the country, | nas had an opportunity to pay such a tribute. s The ceremony Wwill be in charge of or. Hunton Leith, member of the exe- cutive council. The out-of-town dele- gates will be joined by the local dele- gates tomorrow and go to Pittsburgh on a special train. While her2 they will e taken on extended sightseeing trips @nd have dinner at the Shoreham in the evening. Their convention program calls for business leaders for 40 years. He is in | excellent health. RAIL AND PIPE LINE PROEGT RE SEEN iEntry of Carriers Into New Field Not Prohibited by Law. BY CHAS. P. SHAEFFER, Associated Press Fipancial Writer. Entry of the railroads of this country into the pipe line field of activity is one possible development that would oc- casion no surpriss in Capital circles. has said such a procedure would be legal under any of the acts it is called upon to administer. The propriety of such action, it explained, would be contin- gent on the provisions set forth in the carrlers' charters, all of which, with but a few exceptions, have been issued by the various States. Any factual statements written about | the railroads nowadays carries with it a painful lack of enthusiasm. Class 1 roads in 1930 operated at the lowest gross revenue since the war, while the net was the lowest since 1920. The latest reporting statistics for 57 class 1 carriers, issued for April, shows a n!l! operating income 35 per cent less than the same month last year, which, in! turn, was 30 per cent below April of the peak year of 1929 The continuing downward trend of revenue freight loadings, with their weekly decrease of more than 100,000 , as compared with. last year’s to- becomes even more _significant when it is realized that 1930's figures were recorded as being unfavorable. The strain of competition has been exceedingly acute in the past 10 years. The long haul motor trucks have made serious _inroads into the carriers’ freight business, while waterways and coastal and intercoastal shipping have also taken a relatively heavy toll. But in the past two years the pipe lines have come rapidly to the front as a competitor. 1In this period several of the large ofl companies have produced and transported their crude products through the medium of their own pipe lines, thus eliminating a source of rev- enue to the carriers that they could ill-afford to lose. | i it is understood, have given considerable thought to the propo- sition, and one powerful Eastern road, the Pennsylvania, is maintaining an open mind on the matter. Elisha Lee, vice president of the Pennsylvania, said “whether pipe lines can be effectively co-ordinated with rail service, similarly to highway, air and water transport, is a question for the future. Personally, I see no inherent reason why it shouid not be considered. {1t is at least a possibility that the railroads may feel a strong moral obli- gation to enter the field for the pro- tection of refineries located on their lines. I think an open mind should be kept on this question.” ‘The Nation's roads are in agreement that but two main remedies present themselves in their immediate predica- ment, these being either increased rates or decreased wages—with a wide di- vergence of opinion as to the prac- ticability of either recourse at present. NEW YORK BANK STOCKS NEW YORK, June 6 (Special).— Bank stocks and trust shares sold off in decreased trading today. America_at 39, was off Trust, 8715, off 1';; Central Hanover, 217, off 1; Chase National, 69, 6ff %; Chatham-Phenix, 56!3, off !2: National City, 713;, off 3 Continental, 17V, off 1 ; Corn Exchange, 91, up 1; Empire, 4215, off !3: First National, 3,280, off Guaranty, 420, off 3; Irving Trust, 29 off 1: Manhattan, 70%, off Y;; New York Trust, 133, off 3, and Public, 45%3, off 1;. The following were unchanges Brooklyn Trust, 400; Chemical, 38%5; Commercial, 240; Manufacturers, 39%. BUSI}JESS LEA;EE DEAD. SHIPPENSBURG, Pa., June 6 (#).— George H. Stewart, long identified with industrial and civic affaits in the Cumberland Valley, died in his sleep curing the night. He was 93 years old. At one time Stewart was credited with being the largest real estate holder in the valley and more than 100 farms were listed in his name. He also was the principal stockholder in the Cumber- and Valley Railroad, and it was through his stock and influence that tlLe Penn- sylvania Railroad obtained control of the line. Stewart spent his entire life in Shippensburg. He began his business career in 1857, when he started a store here. In 1868 he began his real estate operations and later operated a canning factory and a grain warehouse. In 1890 Stewart organized the Valley National Bank of Chambersburg. view says: “While trade reports are irregular, it is evident that where re- tailers are able to make an appeal to \buyers upon the basis of a good quality of merchandise at low prices, they are moving a very large volume of goods across their counters.” the discussion of many very live bank- ghg problems. It opens tomorrow. ‘I the practice of banks in lOW”rln’:' gmarginal requirements on security loans Yocomes general, much additionz] buy- | ing powsr for securities is held likely velop. € e Naiional City Baik's lajest re- / In its discussion of money and bank- ing, the review recports that the influ- ence of chzap money is gradually spreading and supplving an increasing incentive for capital to overcome its timidity and seek more active employ- ment in industry and The Interstate Commerce Commission | | the July maturity of the | reactions_ which ENDSLONG DECLINE INSECURITY PRICES Oversold Market Responds Quickly to Reappearance of Investment Demand. BUSINESS CONDITIONS STILL UNDER HANDICAPS Railroad Situation and Approach- ing National Election Affect Future of Trade. BY CHARLES F. | Spec'al Dispatch to The Star. NEW YORK, June 6.—The reign of { terror that for the. last three months | has possessed holders of securities came {to an end this week, temporarily at least, after much the lowest level es- | tablished during the depression had | been reached on Tuesday. In Wall Street vernacular, the mar- ket had been “sold to a standstill.” From the professional standpoint there | was not much wisdom in going short of 4 and 5 per cent dividend stocks selling at a range between $25 and $45 a share. Those who owned them outright and had stood pat during the breaks of No- | vember, 1929, and December, 1930, must | then have come to the conclusion that SPEARE. | the values that they would be sacri- ficing if they sold their securities at the rrent prices. O \imber of incidents outside of the market had the effect of changing the speculative mood. Fitted together with the technical market, they served to | accelerate the advance, which began on Wednesday and resulted in an average gain before the end of the week of about 15 points. These were the withdrawal by the Department of Justice of its plan to oppose the merger of Standard Oil of New York and the Vacuum Oil I'Co., the more favorable terms on which | banks and brokers agreed to carry stocks, with special treatment for the scores of issues selling in the lower price ranges; tlhe ne:stnéat ':’ ha:s‘xg ld undertake syndicate woul 5 ogitin Francisco Railway, tremendous deman for the new Government 3% per cent bonds and a decided improvement in the Austrian banking situation, out of which much foreign liquidation of American stocks has developed in the | | | last few weeks. Three Market Episodes. There have now been three great episodes in the stock market since it began its descent in October, 1929. Each has ‘had the same effect on common stocks, but from a different angle. The break which culminated on November 13, 1929, was one in which the specula- tive public lost its paper profits and some part of its capital when prices had an average decline of nearly 50 per cent, which might be said to have been a panic of the professional and semi- professional 7ubli The second ciimax came in the mid- dle of last December out of the emer- gency lquidation in the series of American bank failures and the closing of the Bank of United States. The bankers were then the ones whose nerves gave way and who went to great lengths in transferring all but Govern- ment and high-grade short-term se- curities into cash. A third episode, which had continued since the end of February, has had the characteristic of the “rich man’s panic” 1n 1903-1904, in that there has been a persistent and _perpendicular fall in stocks of the highest grade, with no ! yecovery and no specific explanation of { why or from whence came the selling. It was this lingering illness of the market that did more to frighten in- vestors and to bring them to the point of letting go their best stocks than any other factor. Rail Stocks Sacrificed. Of course, there are conditions in the business world, in domestic politics and in international affairs that have caused, and are likely to go on produc- ing, nervousness among holders of American securities. The railroad sit- uation has come to be known as a “railroad crisis.” Many railroad stocks that have been in strong boxes from 10 to 25 years have been offered this month for whatever price they would bring. The reverse mood of 1929 has had its play upon market affairs. Holders of securities cannot help thinking of the possible delay to busi- ness recovery from the approaching presidential election and the next ses- sion of Congress. They quite naturally fear continued suspension of industrial activity and prolonged unemployment due to the radical social and political these factors will nourish. People have been selling stocks because they say the country is “going bolshevik.” This is as little likely as that the American rallroads are going bankrupt. ‘Then there is the unfavorable polit- ical and economic conditions that exist in a majority of European and South American countries, Wwith threats of revolution and debt repudiation, all tending to shatter business confidence and to delay the necessary stabilization of commodity prices. (Copyright, 1931.) COTTON PRICES DROP ON WEATHER REPORT Weakness in Foreign Market Alsi Factor in New York Decline. | 0 By the Associated Press. NEW YORK, June 6.—Cotton prices declined abcut %, cent per pound to- day, bringing the active positions to within 3 points of the season's low levels established earlier in the week. There was heavy general liquidation in response to a show of weakness abroad and on the favorable weather over the viness in the stock Selling orders were also re- ceived frcm the South, and while the trade bought on a scale down, general demand was limited, suggest- ing a weaker technical position, and the market closed barely steady at practically the low of the day with net losses of 24 to 26 points. July Qctone Decembe) January . Mareh MY o L Close. 30 831 7 87250 i i i | they could not replace in other form | SUNDAY MORNING, JUNE [ , 1931 SUDDEN S“]BK GA'N‘ Active in Coming Bank Parley LOCAL ASSOCIATION READY FOR HOT SPRINGS ASSEMBLY. THOMAS J. GROOM. | touches have been placed on the amu | tion on present business ilis and their | cpen on June 18. ALBERT W. ATWOOD. Mr. Groom, chairman of the Entertainment Committee, reports finishing sement features of the gathering. | Atwood, a nationally known writer on financial matters, will address the conven- Mr. cure. The three-day business sessions IFOREIGN ECONOMIC FIELD CLOUDED BY REPARATIONS ISSUE Commodities and Securities Weak—Exchanges Unsettled as Month Opens. ARMAMENTS CONTINUE T0 DOMINATE BUDGETS Switzerland and Holland Declared in Best Position on the Continent. Special Dispatch to The Sta NEW YORK, June 6.—Cable dis- patches to the Business Week give the following swift survey of business abroad for the week ending June 6: | 1 ;‘ Special Dirpatch to The Star. NEW YORK, June 6—The bond | market dropped to its lowest level in J]v around on Wednesday and finished {the week still climbing It was one of the sharpest reversals | of trend seen in the investment market in years. Standard Statistics index of 130 bonds dropped two-tenths of a point under its December, 1930, low on Tues- |day and when the market closed there { was no sign of strength anywhere. But | had reports that the refinancing of the St. Louis-San Francisco Railroad had been arranged and that another rail- road svstem had secured banking as- sistance. It was sufficient to turn the market. Stock Gains Aid Bonds. Before the day was out the whole ‘g‘mup of junior railroad bonds, includ- Nickel Plate 4';s, had advanced 4 to 8 points and the next day these gains were almost equaled. At the end of the week the movement broadened out to include the whole list, even foreign dol- | lar bonds. | The stock market had a parallel and equally impressive Tecovery and it was | the persistence of the adance in equities (that was the chief mainstay of the bond market. Much of the over emphasized | gloom that chiefly manifested itself by | talk of receiverships and otber dire | {events hanging over the market was dissipated. ‘There was no particular bullish news | n regard to foreign dollar bonds, but| with the return of a more cheerful un- dertone it was apparent that some bonds, notably Argentine 6s, Chilean 6s and a number of the Central European issues, had been oversold and as a con- sequence there was a wide recovery in them. In addition, Brazillans worked higher because of the maintained ex- cellence of the monthly report of the Sao Paulo coffee loan plan. It showed interest and sinking fund payments amply covered. The European situation was helped by the better reports of the condition of the Austrian Kreditanstalt, the col- lapse of which was threatening the post- war economic structure in Central Eu- Tope. German Group Lags. German bonds did nct share the im- provement because of the nervousness angendered by the visit of Chancellor Bruening and Foreign Minister Curtius i ! eight years on Tuesday. turned abrupt-| at the opening Wednesday the Street | ing St. Louls-San Francisco 4!2s lnd‘ INVESTMENT BONDS IMPROVE WITH GAIN IN STOCK PRICES)| 'Foreign Dollar Obligations Join Domestic Corporation Group in Broad Advance. Market Aided by Favorable News. !to England. ‘This spelled only one word to the pessimists—"moratorium"—and | they went so0 far as to say that once a moratorium was in operation on po- litical reparations payments, the de- fault of commercial loans would not be |far off. Young plan 5!,s touched A new low. But on Friday this bogey was | more or less erased by an authoritative | denjal that private and commercial ob- | ligations would be touched at all. The immediate future depends large- ly on what stocks do and their course, in the last analysis, is dependent on [business. ‘The week's sudden price | spurts in wheat, cotton and other com- | modities were more easily aitributable | to the stock market’s advance than to | the creation of a new demand. On the other hand there is no reason why bonds should again dip to the exag- geratedly weak levels of Tuesday and it | ‘l! probable that the investment market | will show an upward tendency for some | time to come. ‘The price of high-grade issues may be expected to advance still further. During the week Secretary Mellon xn-; | | nounced that for the $800,000,000 of | 3's per cent long-term bonds offered by | the Treasury there had been received subscriptions to the incredible total of $6,000.000,000. Were the Treasury or its advisers of the opinion that money rates would not go lower, there would be no point in not leaving the loan open and accepting enough subscrip- tions to fill the Treasury's immediate needs instead of closing the books with the announcement that a further $1,000.000,000 to $1,500,000,000 would be needed before the year is out. Rediscount Rate. Evidently there is some thought in ‘Washington of again reducing the New York Federal Reserve Bank's redis- count rate. If this is so, the Govern- ment and municipal lists and the highly regarded corporation bonds may be ex- pected again to advance to new tops. The overwhelming preponderance of the demand for bonds over stocks was illustrated during the week by a com- pilation of figures for the first five months of the year on new offerings. The total of $1966400,000 in new financing since the first of the year is made up of $1.786,700,000 bonds and $179,700,000 stocks. And of the stocks $110,100,000 were preferred stocks. During the week bond offerings amounted to $72,195,000. against $92.- 554,000 last week and $63,762,500 in the same week of 1930. (Copyright. 1931.) OIL INTERESTS HOPE FOR BETTER PRICES Steps Are Being Taken to Remedy Evils Resulting From Sur- plus Stocks. Special Dispatch to The Star. situation in the East Texas field con tinues a menace to the entire ofl in- dustry, the future is not wholly hope- less, in the opinion of important petro- leum interests. Active steps are being taken to al- leviate conditions created by excessive overproduction and collapse of prices. Oil men are organizing, Gov. Ross Sterling of Texas is conferring with pro- ducers, the Attorney General is looking into the legal aspects of the situation and the State Railroad Commission is also_endeavoring to enlist the support of the industry in carrying out its orders. Proration has broken down com- pletely in East Texas. That much is admitted. Production last week reached a daily average of 350,000 barrels, against an allowable maximum of 160,- 000 barrels. But the breakdown in East Texas has not been followed by collapse of proration in other large producing flelds, such as those of Oklahoma, and throughout the entire Midcontinent orderly production has been maintained. Producers of Cali- fornia also have kept their feet on the ground. If order could be restored in East Texas the industry could be stabilized, it is believed. 5 Restriction measures in East Texas have failed because the conservation law has no teeth and independent oper- ators have refused to give voluntary of the State Commission. It is possible, however, that if efforts to bring the in- dependents into line fail the Governor will call upon the State Legislature to amend the conservation law so as to im} give the commission the authority it | whether now lacks. (Copyright, 1931.) EARNINGS REPORTED. NEW YORK, June 6 (#).—Per share eal s of corporations reporting this week, with comparisons with last year, include: Three months March 31. 1931 Diamond Match R ar December 31. Middle West Telephone B. Year Aprit 3. c ‘wili TULSA, Okla., June 6.— While the | BENNETT’S BUDGET Elements in Dominion Are Not Satisfied With New Schedule of Duties. Special Dispatch to The Star. TORONTO, June 6.—Not since Sir John Macdonald’s national policy of more than 50 years ago has so revo'u- tionary a budget as Premier Bennetl's been brought down in the Dominion House. And not since the imposition of the famous N. P. protective tariff bas Canada received a budget so diffi- cult of acceptance with pleasure in its entirety. 5 For instance, the quadrupling of the sales tax, the increase in letter postage and the canceling of many air mail con- tracts, while necessary to the wiping out of the $75,000,000 deficit in the budget of the last fiscal year and for the insuring of the balancing of the country’s accounts during the next 12 months, can naturally not be unani- mously accepted with enthusiasm. Nor can the Canadian readers of the betier class United States magazines enjoy paying much higher price for their periodicals, although admitting the de- sirability of the exclusion of those of doubtful influence. A general objection to the new pro- tective tariff is made by the free- traders, who blame the high tariff of the United States for much of the dis- tress across the border at present, and who predict a further loss of Canada's export trade if the Dominion’s custo- mers are not able to sell here as well as_to buy. More specific. criticisms of the new customs duties express a fear of an in- crease of the cost of living in Canada, since oranges, -coal, corn, tea, certain classes of machinery, automobile parts, f the luxury class of revenue needed by from the customs depa (Copyright, 1t Trust Company Closed. PHILADELPHIA, June 6 (A).—The Mortgage Security Trust Co., a com- paratively small institution, closed its R e of asse Deposits 10 i | ve AROUSES CRITICISM! 2nd | month the increase increase the |ed for by the 59 Europe.—June opened with commod- ilies weak, stock markets weaker and ex- changes disorganized. The sag in Wall Street and American selling of Euro- pean securities, continued concern over tie condition of Creditanstalt in Vienna, expectations that the Niemeyer report will recommend a moratorium in Bra- zjl—all contributed toward general un- settlement, Further, the belief has become gen- eral that the long latent reparations problem is about to become once more an immediate issue. Chancellor Bruen- ing is expected to contend at Chequers that only a reduction of reparations, or the alternative of an Anschluss with Austria, or both, can avert an immi- { nent_politico-economic crisis in Ger- | many and danger of actual collapse of | that country next Winter. Ultimately, | only the reduction of present inflated | European armament cost will permit the 4 | scaling down of international settle- | | ments, unless the United States is ready [ the bag. Armament Expenses. : | A recent survey by the Business | | Week correspondents in Europe estab- | lished that not less than 26 per cent of | the French 1932 budget will be devoted to armaments; in France and the little entente combined, 25 per cent of their aggregate budgets; Italy, 27 per cent; ’L‘nntland, 13 per cent; Germany, 6 per cent. If inte: e | | rnational political tension could ated, economic conditions would not seem to justify particular pessimism. Indications of seasonal recession in May were fewer than usual. As previously poisited out in these cables, commodity stocks, though congested, are in first | hands. As a corollary, current manu- facturing production appears to be passing more rapidly to actual consump- tion. ~ Cpal, ferrous metals and the en- gineering industries are marking time at Jow Jevels, but textiles (except cot- ton and jute), footwear and chemicals are comparatively active. The building, | automotive and electrical equipment in- | dustries are fairly well occupied. Even | shipping is somewhat improved. Rapidly to review month-end eondi- tions in individual countries, Switzer- {land and Holland are relatively in the | best position. British first-quarter in- | dustrial production was quantitatively 3.6 per cent below the last quarter, 14.1 per cent below the same quarter last| year and, excepting the heavy indus- tries, cotton and textiles, May reports were, on the average, fair. Business in France is characterized by a slow decline. Italy, though d pressed, has for some time resisted fus ther loss of ground, and the stimulus ex- pected by the oversubscription of the $250,500,000 conversion Joan marks the first of a series of similar operations pending in Europe. London.—British business has failed to show the usual post-Whitsuntide burst of activity. Stock markets are! weaker in tone. Foreign exchanges are | erratic, with the Spanish peseta lead- ing in the downward dip. American money is plentiful for short-term loans, hevidently due to hasty withdrawal from troubled money markets in Central Europe. Prospects for tin, already at & new low, are not encouraging. Supplies piled up in May, a fresh 3,387 tons be- ing added. June consumption is not expected to be large. Rubber stocks, on the other hand, de- clined for two successive weeks, cailed up a show of optimism until offset by news of increased shipments from Malaya. Paris—Except for a further sharp seasonal decline in the number of regis- tered unemployed (for the seventh con- secutive week), general business con- ditions are unimproved. Actually this decrease in unemployment is a freak condition. for it is .admitted that most of the jobless have been absorbed only temporarily by odd jobs in connection | with the Colonial Exposition. Labor Trend. A more significant labor trend is fore- cast in the fresh complications which| have risen in the northern strike area. ‘The 150,000 textile workers at Lille a: still out, and are strongly backed by public opinion. French finance is not running along smoothly. The coming conversations at Chequers between British and German officials are stirring many worries. Berlin.—Business is in a state of ex- treme nervouness. Current issues are all in.a state of suspense pending the {announcement of the government's severe cial cure insthe shape of the third emetgency decree, due Saturday. It is expected that, apart from drastic curtailment of expenditure on social services, the decree will bring an in- crease in the income tax despite pre- vious promises. A new wave of capital flight is feared. GAIN NOW RE.PORTED IN SHOE PRODUCTION Production of boots and shoes in April amounted to 29,746,542 pairs, as compared with 20,363,616 pairs in March and 29,000,816 pairs in April, 1930, Commerce Department reports from 1,192 factories show. For the period January 1 to Apil 30, output totaled 102,969,983 pairs, as compared with 110,058,575 pairs in the cor- For the and for the period the decrease was 6.4 per cent. ‘The for April was account< factories in Illinois | | | the 262 factories in New York. lnm ‘Massachusetts Better Business Reported. NEW. YORK, June 6 (#).—Joseph ‘Wilshire, president of Standard Brands, Inc., says the company's business in e second quarter is better than dur- the March quarter. He added that business is “scraping bottom.” as he ex- gradug¥ improvement in condi- | Classified Ads Pages 5 to 12 Announces Cut BANKS LOWER RATE ON SAVINGS. WALDO NEWCOMER, | The_president of the Baltimore Clear- | ing House Association, reports a change from 4 to 3. per cent in interest on | thrift accounts. City banks joined in the reduction. ) ROPIN EXPORTS S LA TO TARKF New Canadian Duties De- clared Cause of Decline in U. S. Shipments. Bpecial Dispatch to The Star. Twenty Monumental | SOVIET THREATENS 10 SEIZE PIVOTAL PLACE ININDUSTRY Success of Wheat Confer- ence in London Depends Upon Russian A!titude. FRANCE HAS ADVANTAGE IN ECONOMIC STRUGGLE Rumored Trade Pact With Moscow Would Change Situation on Continent. BY JOHN F. SINCLAIR. Bpecial Dispatch to The Star. NEW YORK, June 6.—The Euro- pean powers and their satellites have | begun maneuvering at the League of Nations' mceting in Geneva, where the Pan-European Union and other eccnomic plans are the issues at stake. Americans will do well to ob- serve the strategy of these maneuvers and their results. The succession of international conferences during the past three or four years and the world-wide extent of the business de- | pression have brought home to them i how involved they are in world ecc- | nomics. Although Berlin has _ forced the French hand by its tariff union with Austria, it may well be that Paris i still holds the best cards. The failure iof the Creditanstalt Bank in Vienna gives France an additional advantage, for she will provide Austria with cash if Austria will renounce the German trade alliance. At the same time, there is 2 report from excellent sources that Prance will surprise the world by a trade agreement with Soviet Ruscia Should France succeed, even partially, in bth moves, the situation on the contirient will be entirely changed. NEW YORK, June 6.—Upward re- vision ¢f Canadian tariff rates this week—which changed the duties on more than 200 items, particularly auto- mobiles, coal, coke, canned goods, food and utility products delivered in car- | tons—directs attention to the fact that since November, 1930, when the Do- minion’s_emergency imports went into effect, the United Kingdom has sup- | planted Canada as America's best cus- tomer. Because the mew rates announced | during the week may bring a further { sharp cut in American exports to Cana- da, it 15 interesting to.examine in de- |tail trade between United States and the Dominion since September, 1930. Decline 1s Noted. Eliminating from _consideration ex- | part shipments of wheat, corn. rye and | barle: consignments to Canada are ultimately | re-exported to Europe, it will be found that United States exports for the six months antedating the Canadian emer- | gency tariff amounted to $342.500,000 | and that in the following six months, allowing again for the grain shipment adjustments. exports declined to $236.- 400000, a difference of 31 per cent. If the same periods were utilized and grain again climinated, according to Moody’s Investors' Service, the differ- ence in our exports to all other coun- tries “is represented by the astonish- ing figure of only 4.7 per cent.” “It may be objected,” says Moody's survey, “that Canada experienced the measure of the .depression later than the rest of the world, and that the extent of the much greater change in our exports to that country cannot be blamed solely on the tariff.. But even ! when Canada’s total imports are weighed | against our exports to the Dominion in | these periods, it appears that Canadian | purchases from all other countries fell { only about 10 per cent, as against a 31| per cent difference in imports from the United States.” Tariff Rates Blamed. The survey contends this is almost | conclusive proof that at least a large: part of the decline was aided by tariff rates aimed in our general direction, and continues: “It is futile to predict that a similar trade loss will follow in the wake of the latest revision. Generalities as to tarMY causes and effects are bandied about all too loosely. What is certain, however, is that we have lost much of our predoninance in the markets of our former best customer, who in recent years has turned to us for around 60 per cent of her foreign purchases.” (Copyright, 1931.) | DECRIES LEGAL SECRECY IN INDUSTRIAL CENSUS ! Provisions of the national census law which surround with secrecy certain types of information gathered in the Federal census of manufacture are costing American industry millions of | dollars each year through wasted sales effort, declares Norman H. Schoch, New_York, member of the Committec on Domestic Marketing Problems of the National Industrial Advertisers’ Association. He claims that barriers raised by the law are hampering of- ficials of the United States Department of Commerce in their efforts to help industry solve its l'nll'kefinf problems. An important item of information developed in the census, but guarded carefully as a secret, is a list of ex- ecutives and companies engaged in active industrial production in the United States. Publication of the list in the form of a directory of manufac- turers by the Department of Com- merce, said the engineer, would aid in the preparation of market analyses based on accurate knowledge of those companies and localities in which de- mand for the varlous types of indus- trial products center. But publication of the directory would be a violation of the Jaw as it stands at present. POTATO MARKET. CHICAGO, June 6 () (United States Department of Agriculture).—Potatoes, 97 carloads: on track, 181 carloads; tptal United States shipments, 1,101 carloads; new stock, slightly weaker; trading fair; sacked, per 100 pounds, isiana Bliss hs, tly 145a1.55; few, qut nfgur: ordinary, 1.35a1.40; Texas, 1.35a 1.50; mostly 1.40a1.50; old stock, firm on_Russets, steady on others; light; Idaho Russets,’ 1.50a1.60; few o ‘Wisconsin round whites, 1.15a Telephone Company Income. NEW YORK, June 6 (#).—Operating income of 105 telephone companies in March totaled $24,106,055, an increase over $22.805,572 in the like month last year. The total for the first quarter was $69,202,739, compared with $67.- 791035 ‘for the corresponding quarter i PRV ) since the bulk of these grain | It looks as though Russia is becom- {ing the pivotal power in European eco- , nomic developments. The Tesult of the | wheat conference in London can easily | become a moderate success or a dismal i failure, depending on Russia’s stand. | Russia_has stood by the Austro-Ger- man treaty. but may alter her position {in return for wide credit favors from { France. Thus France would hold an- { other club over the Central European states. In breaking up their solidarity, { Prance would also checkmate the trade ipact of Austria-Ttaly-Hungary. One | obstacle in the way of a French loan to { Austria_is the fact that the recent $46.000,000 loan to Jugoslavia was | largely financed by a big French gun ccncern. Railroads’ Economy. | M. J. Gormley. execttite vice pres- | ident of the American Railway Associa- {tion. savs a 20 per cent cut in operations, during the past 10 years, saved American railroads from showing a deficit last vear of about $100,000.000. Speaking of the need of railroads for increased earnings, Mr. Gormldy said: “I would like to ask some one how they are to get them. If the roads ao not obtain the increases in times of business expansion, and do not get them in times of depression. I know of no middle ground . . . Looking back now at the reductions that were made in 1922, when the railroads were not earning anything near what they should have been, I wonder if we might not term that reduction as the result of a lack of constructive view on the part of the general public who demand it.” Mr. Gormley is evidently trying not to spike propaganda in favor of rate re- duction during the present depression, but to create public opinion favoring an increase, as recently suggested by the Eastern roads. The railroads are facing extremely gifficult times. Calls Depression “Mental.” Dr. William Foster, of the Pollak Foundation for Egconomic Research. and author of several books on business, continues to insist that the depression is only mental. “If it were not for the mental atti- tude of the people of this country 3 . Foster, “prosperity would be here. now,. and. the depression would not have .occurred.” But the man out of work wants to change his condition, .not his mind. He bas had a good many theories, or the depression, both. plain and fancy, and the demand for theories is getting pretty low. Dr. Foster is right about the right mental attitude. The present bewil- derment is evidence enough that Amer- icans never gave the subject of eco- nomic stabilization a thought before- hand. But the present situation needs strong medicine and the elimination of theories. Real . Estate. Taxes. ‘The National Assoclation of Real Estate Boards wants other forms of wealth to carry a greater share of taxes. The real estate tax is a simple one to put on. Property cannot, like bonds, stocks, notes, etc., be concealed. Tax bodies are human. They go along the line of least resistance. That's why real estate taxes are so popular with them. _Something must be done about it right away, say the realtors. They con- tend that real estate taxes in many places are confiscatory. The present Chicago tax debacle is a case in point. Inheritance taxes and income taxes, based on ability to pay, are much more just and fair than any real estate ;.:‘:l,nwh\ch can now be imposed, they Henry George’s single tax idea was much more practiceble 50 years ago than it is today. Since then, much wealth has escaped from the land. (Copyright, 1931, by North American News- paper Alliance, Inc.) FERTILIZER LEADERS TO HOLD CONVENTION Special Dispatch to The Star. WHITE SULPHUR SPRINGS, W. Va., June 6.—Executives of the fer- tilizer industry from all parts of the country are arriving today for the an- nual ccnvention of the National Fer- tilizer Association, which begins Mon- day and continues until Thursday. of msp;c:-l lnurnt{u the receipt of & cabled message of greeting to the convention from Sir John Russell, di- rector of the famous Ex- periment Station in England. Sir John ttended the last eonvenuonwhm four reads: for a successful convention. Agricul ture is depressed everywhere, yet there are signs of hope. widespread de- mand for higher standards of living must eventually increase agricultural producticn, especially if producers or- ganize. Agricultural improvement would rapidly react on the fertilizer industry, as modern conditions demand the full- est economic use of fe for ae- - cess In crop o . 0