Evening Star Newspaper, July 5, 1931, Page 45

- d the year" [ B o0, News of Markets Pages 1to 4 , Part 6—8 Pages FIRST HALF OF 1931 SHOWS FIRM TONE IND. C. SECURITIES Issues on Local Exchange Have Held Up Well De- spite Conditions. SOME STOCKS ADVANCED; BONDS LITTLE CHANGED New Insurance Partnership—Fi- nanciers on Vacations—Another Bank Reports Deposits. BY EDWARD C. STONE. Local securities have made a highly satisfactory record during the first Ralf of 1931. During the most severe Teactions on the New York Stock Ex- ehange at various times during the past _six months Washington stocks and bonds have not sold off in any- ‘where near the same D n. Comparisons of prices of local stocks at the beginning of the year and the middle of the year are inter- esting and enlightening. While some issues are selling lower now than they did on January 1, others have ad- vanced. The total volume of trading, considering busines$ conditions, has also been most pleasing to officials of the exchange. In the utlity list Washington Rail- way & Electric common opened the ear at 421 and is now selling at 502. way & Electric preferred star‘ed out at 97% and a few days agc suld at par. Potomac Electric Power 5% fer cent preferred ned the year 07% and is now changing hands at 111, while the 6 per cent preferred started off 1931 at 111 and is now at Washington Gas Light stock opened 1931 at 118'2 and is now moving at 115%. Capital Traction came out on January 1 at 35Y,. Norfolk & Wash- ington Steamboat stock has changed from 200 to 180. At present quotations the yield on Capital Traction is the highest on any of these stocks, being 11.1 per cent, with Norfolk Boat stock coming next with a return of 6.6 per cent. The vield on Railway common is only 1.2 per cent. . Record of D. C. Bank Stocks. Tocal bank stocks have made a good record during the first half year. Sev- eral have, of course, sold lower while others have held their own. Naturally, the widest spread has been in the high. est priced stocks. Riggs opened the year at 445 and is now quoted around 372, with almost none for sale at that American _Security 345 National Savings & 31 at 407 and recently sold ‘Washington Loan & Trust sold in January at 446 while the last sale was recorded at 425. Union Trust has dropped from 219 to 200, Liberty Na- tional from 195 to 190, District National from 207 to 201, and Commercial from 220 to 215, and National Metropolitan from 310 to 3800, Federal-American National Bank & Trust stock opened at 50 and sold this week at 50. The tabulation prh elsewhere changes in other bank stocks. have not moved at all. In the miscellaneous exchange list quotations perhaps show more varia- tions. Columbia Sand & Gravel pre- ferred has advanced from 86 to 90%, Peoples Drug Stores preferred has gone from 98 to 100. Stocks that have changed in the other direction include the old-time sound type stocks, Mer- genthaler Linotype opening the year at 86 and now selling at 77%, and Lanston Monotype selling in January at 102 and at the end of June at 87'3. Local bonds reveal only small fluctu- ations. The most active bonds on the list have been Capital Traction 5s, with $175,000 turnover; Washington Gas 6s, serjes A, with $111,000 sales, and Wash- ington Rallway & Electric 4s, with a $182,000 turnover. Hardly any of these local issues have varied more than two or three points during the first half year. It is a record to be proud of. ‘Reports Business Up 21 Per Cent. A. L. Baldwin, general agent of the Northwestern Mutual Life Insurance Co., states that the Washington agency has just reported $2,500,000 of paid-for business for the first six months of | ing th 1931, which represents an increase of 21 per cent over the same period of last year. An interesting event in the agency he says, has been a lively 10-week contest which has just been concluded. Credits were allowed for number of new cus- tomers, volume, hours of work and methods of sales interview. F. George Clendaniel has been awarded first in the contest and J. Hicks Baldwin second . Mr. Clendaniel has been in the business Just one year, The two winners will be the guests of the general agent for a trip to the home office in Milwaukee, where they will make a sales demon- stration at the national convention. What Debt Holiday Means. ‘The people of Germany and their business concerns would be relieved of taxes totaling approximately $427,000,000 this year under the proposed temporary sus) on of all intergovernmental war debt payments, says the Lincoln Na- tional Bank’s Review. ‘That is the amount that Germany is pledged to pay der the repara- lan. ving to Germany. would cost the American Govemmen:o suc.m,om Stern recelve accepted or “The moratorium wonld cost France $97,000,000. Prance 13 scheduled to re- Taany, and o, pay Bngiand, the. Unied imany, an y in summawm" countries a total of ible and worsted mills head the Insurance Partnership Formed. It was announced that c] al ‘Some dent of the Marine BANKERS ELECT LEADER FOR COMING YEAR. JOSEPH D. YERKES, Honcred by safe deposit division of the District Bankers' Association at annual meeting. He been with the Fed- eral-American National Bank & Trust Co. several years and active in institute affairs. —Harris & Ewing Photo. \BONUS WAR ENDED WITH COMPROMISE Stockholders of Bethlehem Agree to Accept New Schwab Compensation Plan. Special Dispatch to The Star. NEW YORK, July 4—The war be- tween the stockholders and the manage- ment of the Bethlehem Steel Corpora- tion over the payment of hug: bonuses to executives came to a peaceful end- ing with a slim victory for the stock- holders. Stockholders brought suit last January for the refunding to them of $36,000,000 distributed as bonus¢s to high officials of the company in the last few years. The management sub- mitted a new plan at the meeting ‘Thursday and the stockholders dropped the suit. ‘The new plan is a compromise be- tween the views of the stockholders and the principal officers and directors. The most important changs will be that the bonuses will be paid after all other expenses and write-offs, instead of be- fore certain charges such as deprecia- tion, depl:tion and obsolescence. These charges amount to about $15,000,000 & year. 1t is estimated that the total distribu- tion to officers in any one be reduced by about $1,200, last three years bonus paymen averaged about $2,500,000 annually. 1929 they were $3,425,306. Fancy Salaries. A serious question arises in business as to just how much one or two domi- nant characters are worth to a cor- tion. Charles M. Schwab contends t the right man may well be $1,000,000 a year or more. Elliott C. 11, director In the ts have In ‘Trust Co., of Buf- falo and one of the opponents of big bonuses to captains of industry, de- clares that the day of fancy salaries and high wages is past in industry. Mr. McDougall says that salaries and wages come from sales and they are no small part of the expenses that increase prices. Business is dull, he says, be- cause many pric:s are too high for the present purchasing power of the Na- tion, and holds that expenses must be cut until sales increase. A group of minority stockholders of the American Tobacco Co. showed dis- content over the bonuses paid to George and in March of this year court action was started to block the sale of the company’s stock to officers and em- ployes. It was argued that.the stock plan amounted to a bonus to officials and employes of the com- pany of $30,000,000 or mo-s. ‘The ma: agement was supported in its plan by a substantial majority of ::otkholders. Grace’s Bonus. Under the company’s stock subscrip- tion plan Mr. Hill received 13,400 shares of stock, at $25 a share when it was scll- ie market at $100 a share, the equivalent of more than $1,200,000. And the five vice presidents received 16,685 sharss. * This was in addition to cash bonuses and salaries. It was indicated that Mr. Hill may have received more than $1,000,000 in cash, bringing his *o- tal compensation with the stgck allot- ment to more than $2,200,000. This is a nice cut in on the prosperity of the company last year. Eugene R. Grace, president of the Bethlehem Steel tion, received a cash bonus of between $800,000 and $900,000 last year in addition to his salary. In 1929 his cash bonus ex- ceeded $1,600,000. (Copyright, 1931, by North American News- paper Alliance, Inc.! VIEWS NOW CHEERFUL ON SECURITIES OUTLOOK | prospects of Special Dispatch to The Star. CHICAGO, July 4—A largs majority of the security dealers throughout the country are itic mediate out and stock market, monthly investment review of & Co., investment bankers of and New York. “Actual distribution of securities dur- ing " said the review, “was not impressive, but in reports of dealers as to the outlook for the immediate future the S tic forecasts x;l recent mon ve been strikingly reversed and a substantial majority look for- ward to real improvement in both the bond and stock markets,” PAY ROLLS GAIN MOST IN TEXTILE MILLS Special Dispatch to The Star. NEW YORK, July 4—The woolen 1ist of those gains in per cent, lowed by the tire r;l:nh. cement works bacco factories. ‘The pay rolls in the men's and wom- . FINANCIAL AND CLASSIFIED ¢ Sunday Star WASHINGTON, D. C, Seetion Cuairman] [ADVANGE IN STOCK | MARKET IS LAID 10, HOOVER DEBT PLAN Business Takes More Cheer- ful \dew, With Evident Signs of Recovery. RETAIL SALES REFLECT IMPROVED CONDITIONS Traders in Securities Foresake Bear Side as Long-Term Outlook Brightens, BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, July 4—Business and markets are entering the second half of 1931 animated by the faith that all peo now have that the Hoover plan ol“l “debt holiday” will eventually pre- vail ‘The memorandum of the American Government to France published on Thursday states that the purpose of this is “to give general relief to the world” and that it would “prove an important step in advancing world re- covery from the pressnt economic de- pression.” In sum, the purpose of the proposal, which has been before the French government for consideration since June 20, is to relieve the strain on world economy and to give the next year over primarily to the release of re- cuperative forces “alteady in motion.” The situation in this international arrangement has been most delicate for the past week. In has seemed at times as m&u(:u:‘l'} of the benefits o; a change ess _psychology, of buoyancy of securitles, J".’ rebound in commodities and. the lifting of pressure from German might vanish in the insistency of France to have her way in carrying out the letter of the American proposal. Much irritation has been displayed over the unwilling- ness of France to make sacrifices that every other country involved has gen- erously concurred in. Looking at the problem from the French viewpoint and realizing that what has taken place marks the be- ginning of a general program for can- celling all war debts, one may have a considerable degree of sympathy for France without respecting her attitude in the immediate crisis. The issues in- volved are so tremendous and affect French financial solidarity so much, year would 00. be and her political position in equal de- gree, that it is not conceivable she will definitely reject the modified terms that have been submitted to her. Signs of Uptrend Appear. Qn the premise that the plan. will be and that the relief from it will fective this month, one may again take the stand that markets have seen their worst days and that gradually there will appear definite signs of re- covery in the industrial world. While the occasion for the moratorium was the impending crisis in Germany—and this crisis in similar form is likely to recur, so France has been notified by the American Government, if the debt progonl is not accepted—it coincided with a liquidated condition in the mar. ket for American securities and in the and former presi-| first traces ‘modities ness. Industry has been waiting for some move to give leverage to the in- cipient stirrings within it. It never | total. anticipated that this would come in a form that would impress and coneern not only this country but Europe and would have ramifications immediately bringing benefits to as far-distant cor- ners of the gl 25 Australla and the South American republics. It is to do what the American Government's mem- orandum this week says of it—namely, “give general relief to the world.” Marketwise there been substan- W. Hill, president, and other officials, | f tively short time. theory, on which many new investment portfolios have been developed this year, that the highest percentage of appre- during the next market recov- ery be in stocks selling below $20 & share and even more in shares quoted below $10. Business Looks o Future. ‘We are by no means out of the woods even when the debt is signed and sealed and all of e ipants in the t shake ds with each other. The impression of June quarterly statements on stocks will be unfavorable, though with the market technically stroriger and the interna- tional situation tly improved and @ definite turn in business, stal or ending March 31. Business and market makers now reflect an attitude where the future rather than the past excites their in- directs their energies. The the ket and the pessimist iness are passing out of picture after ha been at the of it the greater part of the last ly there is little in evidence hange has occurréd. The differ- ence is in sentiment and in mood. , however, control events quite as itively at times as do facts. This MISS WINIFRED BURWELL NAMED ASSISTANT BANK TRUST OFFICER Wins Promotion After Seven- Year Service With Na- - tional Metropolitan. New Appointee Has Been Active in the Affair's of Local A. I. B. Chapter. Announcement that Miss Winifred 8. Burwell had been elected assistant trust officer of the National Metropolitan Bank, of which George W. White is president, aroused unusual interest in banking circles here, and especially among members of the Washington Bank Women’s Club and Washington Chapter, American Institute of Banking. Her name is now added to the list of several women who hold important posi- tions in Washington banks, this number growing slowly but steadily each year. The directors accorded the promotion to Miss Burwell after some seven years' service with the bank. She came to Washington from Cleveland, where she had obtained much experience in the banking field in that city. She was also employed in a Boston bank for nearly W&h m t;’erm ‘m preb(.zcrznce for n bring ler k to National Capital. Active in_the local Bank Women's Club, Miss Burwell has played an im- WINIFRED S. BURWELL. —Harrls & Ewing Photo. portant part in the club’s rapid growth during the past three years. Her inter- ests have been even more closely linked with the Institute of Banking, where she has completed practically all the courses offered and served on several important committees.” She is to act this year as chairman of the Women's the | Committee. The National Metropolitan Bank, by which she is employed, is one of the oldest banks in the city. Business Failures In June Sharply Lower, Says Dun’s Marked Improvement Is Noted in Report of Recent Defaults. Special Dispatch to The Star. NEW YORK, July 4—The report on insolvencies for June was more favor- able than for many months past. The number of failures was considerably re- duced, and while the liabilities contin- ued heavy, owing to some defaults of unusual size, the total was very much less than for June of last year. The records of R. G. Dun & Co. show 1,993 tusiness failures in the United States during the month just closed, involving $51,655,648 of indebtedness, ‘These figures compare with 2,026 similar defaults in June of last year for $63,130,762. The reduction in the num- ber of failures from & year ago was the first in over 18 months, or since Novem- ber, 1929, and the number in June was the smallest since September. last. The decline from January to June this year has been particularly marked, being equivalent to 40 per cent; whereas in 1930 it was 26.5 per cent: also, as to liabilities, the reduction this year from January to June was 45 per cent. A rear ago thers was an increase in la- ities In June as compared with Jan- uary. For the half year ending with June business failures numbered 15,107, and the labilities were $370,497.369. The number compared with 13,771 for the first half of 1930 and 13,384 during the same time of 1922, a period when finan- cial conditions were particularly dis- turbed. In no preceding half year have business failures been as heavy as this year. Liabilities also were large, com- mnj with $337,089,083 a year la:: amount was not so heavy as in first six months of 1922, however, when $373,716,338 was involved, a record BUSINESS IS QUIET IN FIFTH DISTRICT Change in Employment. Industries on Slower Schedules. Little By the Associated Press. " hE.XIICHHOND, Va., -:::Ym‘.—utfil change, if any, was noted. in employ- ment conditions of the fifth district by the Federal Reserve Bank of Rich- mond d May and the first part of June, William W. Hoxton, chairman and Federal Reserve agent here, said in his July business conditions review. Mr. Hoxton said that rellef agencies continued to receive an unusally large number of calls for assistance from people who could not find sufficient work o maintain themselves and their fam- ilies. Coal production was reported to be lower than that of 1930, and he said building had not shown as much sea- the P dlm Ei‘;d M“y;r e corres ng perioc 3 The reportm-dded that practically all industries of the fifth district except tobacco factories were operating - less than at the same time last year. Some of the railroads serving the district were reported to have put their shop forces on a five-day-week basis, without any reduction in hourly wage, and the Southern Rallway was re- ported to be making plans for the adotion of the same working period in the near future. This arrangement, the report said, would make it possible to retain all employes. The rzport_'uld. also, that thus far have “held up fairly well, but there is a lual downward trend in evidence, lly among small industrial plants which Iack financial favorable conditions of the depression.” NEW PRESIDENT NAMED FOR McCRORY STORES erly vice presi- cm’r.amn.lm: ly e, besn dent of S. H. Kreu‘ Co., of J. is ! elected Prelidet éorpunon.su:eeedlnc who has been elected board. BANK STATEMENTS IN DETAIL URGED Movement Is Started to Re- quire More Complete Evi- dence of Condition. BY C. B. UPHAM. Proposal has been advanced and given some discussion in banking circles, espe- cially among officials charged with the duty of bank supervision, that greater detail be required in the published statements made by banks from time to time, in response to the “calls” that are made by the controller of the currency and the State bank supervisors. A glance at the statements of condi- tion that are now appearing, showing the position of banks as of June 30, will indicate the impossibility of the ordi- nary bank depositor getting anything but & very general idea of the sound- ness or solvency of his bank. The depositor cannot tell, stance, what the securities in the in- vestment portfolio are, their classifica- tion or maturity. He has no way of telling whether the loans are good, or for how long a period they run. He does not know whether the ‘“reserves” are real reserves against unknown con- tingencies, or actually write-offs of losses. Even a hidden capital impair- ment would not be discoverable to him. Other Reports. ‘The balance sheet of a mercantile or shesd manufacturing corporation usually con- tains considerably more information than does a bank statement. Many concerns, such as public utilities, are T by law to submit more detailed formation. Investment trusts in some cases make public their entire lists of investment holdings. Insurance com- panies must do so in their annual statements filed with the States in which they do business. iscussicn of banking matters be- fore committees of Congress recently has indicated a possibility that such publicity will shortly be required of in- vestment affiliates of national banks. Opponents of the extension of this practice to commercial banks insist that, even if it might be found advis- able in the future, now is no time to vestments and their loans. Some persons, among them .thought- ful and conservative observers, feel that publicity of this character would be a mistake at any time. Banking is a matter of confidence, they say, and the depositor should select a bank in whose officers and management he has confidence, and not try to follow the details of operation. e customers of & bank would either not take time and trouble to analyze the bank statement anyway, it is argued, or if he did he would not get a very much better understanding of it then he does now. The - statements of Federal land banks and of joint stock land banks give much greater detail as to their condition than do banks, and yet EX g condition. ordinary commerc! bly few of those or buy their statements of New Suggestion. One suggestion which has received 1a] | sistently unsatisfactory. SUNDAY MORNING, JULY 5, 1931 IFOREIGN ECONOMIC PIGTURE: BRIGHTENS DURING PAST WEEK Debt Holiday Plan Causes Lively Securities*Trading and Commodity Advance. BRITISH BUSINESS GAIN FOLLOWS PARIS PARLEY France Still Struggling in Throes of Depression Despite Improve- ment Elsewhere. Special Dispatch to The Star. NEW YORK, July 4.—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending July 4: { Europe.—The evolution of the Hoo- ver plan is the most significant event of the week. Its causes and effects have completely obliterated all industrial and commercial developments. Universally booming markets during the past week were spontaneous. Stock markets in Europe rose from 9 cént to 20 per cent within the week, while the most active issues actually gained from 40 per_cent to 60 per cent. Commodities, especially the basic ‘metals, were jubilant after two years of gloomy decline. turnover of the four principal metals on the London Exchange during the week sprang from the usual 12,000 tons to more than 28, 000 tons, which, whether it was caused by short-covering or industrial purchas- ing, is highly enlightening as to the ‘i}‘” and wherefores of previous de- clines. ‘The possible duration of the German efflux of gold and foreign currencies, both from foreign and domestic sources, is not yet stanched and gives rise to disquietude, despite the new 100 mil- lion credit granted by the creditor na- tions. The French cabal for the mo- ment also is exercising a certain detri- mental effect on the good already ac- complished, but will certainly be short- lived, since France also has participated to nnuunexpecuefl extent in the Hoover revival, New Economy Measures. For the second time in history, Spain this week became a republic. Parlia- mentary elections resulf in an over- whelming republican landslide. For the moment the monarchist issue is buried. ‘The new republic will, however, be faced with _three major sources of difficulty: (1) The Catalan separatist movement, anti-clericalism, (3) Socialism. ‘There is yet no valid reason for sup- posing that these issues will jeopardize the new government. ‘There is reason to expect, however, that political and, , ~ business conditions in unsettled for an indefinite riod. period. finally being made of the Spanish reserve for currency stabilization. This reserve is the third largest in the world; '-nomnlouflr.l it e§ceed.l Inwvllue t.l; value rrency {cir has bgen:umhmm while the peseta depreciated. ney y will be & support to business during the unsettled political situation which les the depres. Tension in the Austrian situation was removed when the government, re- sponding to pressure brought by Dr. Bruin, adviser to the Austrian National | Bank, and foreign creditors interested in Credit-Anstalt, agreed to guaran domestic as well as foreign liabilities of the reorganized bank. Proposed Bank Features. M. Frai cluding Rt : I;rkhh:h credit may be extended by the London.—The nerally improved world outlook, despite the degree of un- certainty over Paris conversations, has B!‘fl.itlelsll busin M‘hh‘!tug!.‘ 13 lleod‘ ess, a to bring about any wide increase in actual trading. Stocks and commodi- ties are markedly better. Retal have improved. The labor situation is better, due to the provisional settlement of the dispute in ‘which more than 1,000,000 workers were involved. Paris.—Conditions continue to be per- ‘With the trend toward stabilization still well be- low lastyear's levels, there is little hope now for early im t. Rail re- ceipts and mmm”“ ceded sharply. The entering the seventh week, is not yet settled. Stock markets, buoyed by the and stimulus from amounts of assets listed by examiners is as doubtful or slow or as losses be bank statements. loans and strength to meet the un- | in BOND YIELDS LOWEST DURING RECENT YEAR Special Dispatch to The Sfar. CHICAG%’ Auly 4.—Refl the high character of new ylelds of new cor- imcaties. Already the 1951 defictt is estimated at $92,000,000. Berlin.—Business is anxiously ‘Hoover tion transfer on relieved in either case. The stock market, though nervous, has maintained most of its . Stock index at the end of the week at 73.7, against the mid-June low of 65.3. The monéy market has stiffened; the vate discount rate is unaltered at ‘Classified Ads Pages 4 to 8 At Maine Resort LOCAL BANKER VISITS POLAND SPRINGS. EDWARD J. STELLWAGEN, President of the Union Trust Co., who has been at the s?me hotel more than 40 Summers. He believes the past year has entitled all bank officers to an extra good vacation and sees great world benefits in the proposed debt moratorium. QUTLOOK FOR OIL TRADE IS BRIGHTER 1Recent Advances in Price Have Encouraged Lead- ers of Industry. Bpecial Dispatch to The Star. TULSA, July 4—An unwillingness which has almost become universal in the oil industry to liquidate inventories further has materially strengthened gasoline prices at the wholesale tank market in the midcontinent area this week and materially increased the de- mand for fresh petroleum from the wells. Oil men would rather cause a dimin- ution of that intangible inventory of oil underground at the current prices drawals from storage on top of the ground at this time entail. ‘They feel little concern about writ- ing down inventories to the current market price, but taking the actual loss by the physical movement of the prod- ucts when replacement depends upon the freakishnes is another of geology gasoline pri resul m :gl:lud demand which developed from absorption of the distress material and the higher cost of the raw mate- rial at one of the important independ- ent refining point The I sonal demand materially. _Speculators also for first time this year are entering the market. They were waiting for the ng point. Whereas gasoline was available 10 days ago at 2 cents a gal- lon in a ' market, it has moved to 23 for East Texas and 2'; cents for other points of the midcontinent fleld in a sellers’ market. The ufirply at the new prices even appears ited. ‘The reversal of the market and sen- timent come from the realization that the curtailment in operations in the Y | production of the raw material and the products therefrom was based upon a lower level of consumption than now prevails. Then the curtailment pro- gram which has guided operations this Spring was formulated also on a level of prices a good deal higher and on tee | one which did not contemplate today’s quotations. (Copyright, 1931). —_— MIDWEST. BUSINESS IS MARKING TIME Buying Continues Small and Cred- it Extensions Are Held on Tight Basis. Special Dispatch to The Star. financial position than ever in its his- tory at such a date. This is not merely because of the low price level for products, the that is a primary but includes the logical effect of a long grind during which initiative has been and con- fidence brought to low ebb. matter. ent A three-eighths of a cent advance in ling has from the KANSAS CITY, Mo., July 4—Start- |duce entertainment of a quality ing the second half of the year, the in- [ merits public patrona; terior finds itself in a more puzzled | (Copyright. 1931, b: PIGTURE INDUSTRY 15 DECLARED BEST SALESMAN OF U.S. Harley Clarke Points to Bene- fits Derived From Ameri- can Film Exports. PREDICTS GOOD RESULTS FROM BUSINESS SLUMP Says More Efficient Operation Will Follow Period of Wasteful Expenditures. Special Dispatch to The 8t NEW YORK, July 4—The motion picture film is the best salesman the United States has, according to Harley L. Clarke, president of the Fox Film Corporation. Every foot of film exporte ed by the motion picture companies re- turns at least a dollar’s worth of busi- o e timist T, rke is very optimistic over the future of the industry and scoffs at the idea that the point of saturation has been reached. There is a new and ?70.31 flelduin n‘mmschools and colleges or the motion picture which has hardly yet been scratched, he believes. That the motion picture industry has had extravagant ideas about spending money Mr. Clarke admits, but most producers have now come to thelr senses. Lessons From Depression. In an interview with the North Amer- ;::‘ Newspaper Alliance, Mr. Clarke “Whenever, and however, the recent mtlllu»s d;emhlndwn comes to an end it eave tangible and, we s lasting benefits. These will mh:rp:f better management, standardization of methods, more efficient and economic operation and more direct response to public needs and desires. “The motion picture industry has re- sisted reaction more successfully than most other businesses and this encour- ages those engaged in it to believe that it will benefit immediately from any general improvement in business. *“This business has been conspicuously lax and wasteful during most of the 25 years of its existence. The experience of the last two years tsught the execu- tives of the industry that future profits than take the large losses which with-|may be assured only by the same pru- dent management that is essential to any other commercial enterprise. When the business trend turns upward, ths profit ratio of the business should im- “This foreign market will continue to expand at an abnormal rate until 50 per cent. “Visual education offers a new and broad field to the motion picture in- dustry. The coming of sound made motion pictures an ideal coraplement to the text book. Educational pictures such as are being produced today, bring the culture and the learning of the world into the class room accompanied by lectures done by the ablest educators. “The motion picture will contribute much to the revival of world business. The Department of Commerce has esti- mated that every foot of film returns at least a dollar’s worth of business. Americat and 5 n feature news reels advertise m‘%fi eigners to emulate the American stand- .91 living, . exploit . new necessities and luxuries and te the internse tional exchange of goods. “There should be no question about the future prosperity .af the motion pic- ture industry if its leaders will remem- ber the lessons they have learned in recent years and will continue to m y t Ne "alaned, ac.) American Newspaper TRADE APPROACHES - PROFESSIONAL ERA been experiencing for the past three years| Trained Personnel and New Prac- a gradual iward trend in the value of its products and has made some re- adjustments in accordance therewith, but the opening of a rich wheat harvest has found it somewhat ered as to what to expect next. ‘The six months marked a static situation as tices Are Working Big Changes. P tiave Deel | pecial Dispateh to The Star. YORK, July 4—Codes of e of information and e 2c- | Thousands of young men and women reduced or eliminated are emerging from the graduate and unde: e schools of business show earnings.|in the universities form one influence (Copyright, 1931.) *to elevate business to of : collection, ELECTRIC OUTPUT SHOWS | {5 oo orainating funcien thas o ceiieg DECREASE IN 12 MONTHS | <tize. management is a professional