Evening Star Newspaper, July 5, 1931, Page 47

BUSINESS TRENDS DIFFER WIDELY ‘Outlook in Important Lines Presents Many Contrasts, New Survey Shows. Current indications of the trend in wvarious divisions of industry and trade are summarized by the Standard Stat- istics Co., from its first of July resume of the outlook for important lines, as follows: . Agricultural machinery—The level of agricultural purchasing power remains exceedingly low and market prospects for leading farm commodities do not promise an early substantial recovery. Aircraft—With but few exceptions, manufacturers’ operations will remain generally unprofitable during the final six months of 1931. Prospects for the transport division are somewhat more favorable. Apparel—While profit margins will be distinctly limited in all fields, full year returns in most instances should show improvement over last year's re- sults. Automobiles—Present_indications are that dullness will characterize t| ndotor trade until early Fall. greater than seasonal advance may experienced in September and October. ‘Automobile ‘The Summer is expected to be a dull period with in- dications of at least a moderate Fall upturn in activity. Automobile tires—The absence of severe inventory losses, coupled with widening profit margins (due to lower material and labor costs) should result in a_ markedly better income showing for the July-December period than was reported in the comparable 1930 months. Building—Prospects for the final half year are not satisfactory, though pos- sibilities are favorable for checking the decline this Fall. Chemicals—Because of a marked re- duction in costs, chemical profits in general should benefit materially from basic industrial improvement. Coal—Full vear results for the great majority of companies in both branches of the industry, will be little, if any better, than the showing made in 1930. Copper Outlook Better. Copper—Current indications favor improvement in the industry during the latter half of 1931. Cotton goods—No substantial im- provement in mill earnings is expected during the last half of 1931. Possible inventory losses will probably be of only moderate proportions. Electrical equipment—Little more than seasonal expansion in activity is expected this Fall. Fertilizers—Both sales and profits of preparers and distributors in the in- dustry will remain at a substantially Jower level than in the similar period last year. Food products (other than meat)— As a whole, the food group will be one of the few this year to report earn- !x;g:gi;; favorable compasison with those of . ~ Household products—The leading ‘eompanies manufacturing necessities will probably show moderately higher --earnings in the final six months of 1931 th‘:cl,dwue recorded in the like 1930 i Lead and zinc—Earnings for both lead and zinc companies will probably show little improvement over the un- satisfactory levels of the semi-annual period just ended. Leather—The drastic curtailment of shoe factory activity in the final quar- ter of 1930 is not likely to be repeated this year. All factors considered, tan- ners’ deficits probably will be smaller this year than in 1930. Machinery—Allowing for the usual Summer dullness, improvement in the volume of both orders and shipments is looked for as the year progresses. Meat packing—The sales stimulus provided by reduced prices should be- come increasingly apparent during the remaining four months of the packers’ fiscal year. Office equipment—With but few ex- ceptions, earnings in the remainder of 1931 will remain at restricted levels. Paper—The second half of 1931 holds forth the prospect of some relative im- provement over the first part of the year. Petroleum—Profits during the final six months of 1931 will depend upon the prices in effect. Some strengthen- ing of quotations is probable before the close of the year. Radio—Indications are that earnings for both the final six months and the TRADE ASSOCIATIONS INCREASE MEMBERSHIP By the Associated Press. Trade assoclations have increased their membership 85 per cent and their income 73 per.cent during the last 10 years. ‘This was shown in a study made public by the trade association depart- ment of the United States Chamber of mmerce. Philip P. Gott, manager of the de- partment, said the survey was the most complete one ever made, covering 416 associations having a combined mem- bership of more than 360,000 “In 1930,” he sald, “the average net decline in income as compared with 1929 was 3 per cent for national asso- ciations, somewhat more in the case of State and regional associations. ear 1930 closed with an aver- age net {ou of members by 302 national associations of 1 per cent and 114 State and regional associations also of 1 per cent. “Estimal for the first euarter of 1931, based on partial returns, record a further average net loss of about one- half of 1 per cent. On this basis, in spite of these losses, total combined me;;!bership is now greater than in 1928 - full year will be materially under even the unsatisfactory 1930 results. Railroads—It is believed that by Au- tumn a somewhat more than normal seasonal gain will be experienced from the prevailing low plane, but it is too much to expee or net revenues t gross be | to be modified for the better before the final months of 1931. Railroad equipment—With the ex- ception of companies in the signal and car leasing fields, profits for the in- dustry will be drastically curtailed for the year. Rayon—Prospects are that both out- put and takings during the final six months will be above the levels of a year ago, but because of the price situation, profitable operations for most companies are not likely. Retail Prospects. Retail trade—Expanding business and a greater degree of stability in price structures, as well as fuller benefits from efforts to maintain expenses at a minimum, should allow more satisfac- tory earnings in this division during the final six months of 1931. Shipping—Only moderate relative improvement may be expected in either coastal or foreign freight and passen- ger movement during the balance of 1931. Profits of the larger shipyards along the Atlantic are being maintained close to a parity with those witnessed last year. Silk—Although the present statistical position in the silk goods industry shows some improvement, most concerns will probably be unable to avoid at least moderate deficits for the full year 1931. Steel—For the trade as a whole, a favorable comparison of earnings with those of 1930 is unlikely before the final quarter of this year at the earliest. Sugar—It is expected that the bene- ficlal effects of the Chadbourne plan will become increasingly apparent dur- ing the final six months of this year. ‘Theaters—The early future trend of earnings will follow attendance rather closely, but because of the substantial economizing programs which have been instituted a proportionately greater gain in income should be forthcoming with the next upturn in attendance. Cigarette Net Larger. ‘Tobacco—It is estimated that the re- cent wholesale price increase will result in an advance in full year 1931 income of the cigarette trade as a whole of at least 10 per cent, as compared with 1930. Aggregate income of the cigar trade will probably be sharply lower than the 1930 total. In the snuff di- vision profits will approximate those of last year. Manufactured tobacco sales and earnimgs will likewise probably be close to the 1930 amounts. Utilities—For the full year 1931 net income of the electric utilities should be but slightly below the satisfactory levels recorded last year. Income of telephone companies for the full year should slightly exceed the 1930 record. Present outlook for the telegraph business indicates that rev- enues are now at about their lowest ebb and that the resumption of business activity on a broader scale will bring an Autumn improvement. Improvement is not expected for trac- tion enterprises during the coming Summer months. It is probable that moderate gains will be reported by manufactured gas companies in the Fall, somewhat im- proving the general showing for the year. ‘Wool—Profit margins of manufact- urers are expected to remain unsatis- factory during the remainder of the year. WASHINGTON STOCK EXCHANGE YEAR 1931 TO DATE (Reported by W. B. Hibbs & Co., Hibbs Building, Washington, D. C.) OCCURRING ON THE WASHINGTON STOCK EXCHANGE FOR 1031 UP TO AND INCLUDING FRIDAY, JULY 3. BON| PUBLIC UTILITIES. DS. Avprox. ¥ Open. High. Low. Close. maturity. 8l 6.80% Anacostia & Potomac Riv. R. R. 1st 6s, 1949.. 81 81 81 Anacostia & Potomac Riv. R. R. guar. C. & P. Tel. of Va. bs. 1043 . Capital Traction 1st 3s, 1947 . City & Suburban Railway 1st 5s. 1948 Georgetown Gas Light 1st 55, 1961 . Potomac Electric Power cons. 5s, 1938 ... Potomac Electric Power gen. and ref. Washington Ga: 1960 . ‘Washington Gas Light 6s, series B, 1t Washington Rallway & Flectric Ss, MISCELLANEOUA. Columbia Country Club 5%s, 1980. ‘Washington Market 5s, 1936 . PUBLIC UTILITIES, Capital Traction . N. & W. Steamboat . Potomac Electric Pow Potomac Electric Power pfd. Washington Gas : Washington Railway & Elec. com. Washington Railwsy & Elect. prd. NATIONAL BANKS. Federal-Amer. N 5 Liverty Metropolitan Rigss . Second . Washington G TRUST COMPANIES. American Security & Trust Continegtal . National Savings & Trust Union Trust Washington Loan & SAVINGS BANKS. East Washington ...... Potomac Savings Bank . Security Savings & Commercial.. Seventh Street Savings Bank.. FIRE INWORANCE. American $ Corcoran TITLE INSURANCE. Real Estate .. 7 MISCELLANEOUS. Barber & Ross, Inc., com. Columbia Medical Bldg. Corp. bia Sand & Gravel pfd. Disbrict National Security pfd. Emerson Bromo-Sel. “A” . Federal-American Co. com. Federal-Amer. Co. pfd. Lanston Monotype Merchants' Trans. & Stg. com. Merchants' Trans. & Stg. pfd. Mergenthaler Linotype National Mtge. Inv. pfd. Peoples Drug Stores pld. Real Est. Mi Security Storage .. ... .. Terminal Ref. & Whs. Corp. The Carpel Corp. ... Woodward & Lothrop p: UNLISTED DE! Commercial Club 5s .. 5 Natl. Press Blds. 1st 5'ss, 1980,. . B3, 1049 5 96 103's 103'3 . 83 73 104'2 . 10512 6, 195 A 109 107% 100% 103 936 . 105% 1951 . 90% 100% Low. 327 180 110 10 11! 421 7% 224 215 201 49 185 212 370 170% 225 20613 1ns 401 200 420 25 6 451 290 4% 98 6 1043, 40t 193, 107 PARTMENT. 4 30 . . L] anklin National Benk eteceees 100 7.00 125 THE SUNDAY STAR, WASHINGTON, D. 60). Ainsworth Mfg Corp(1) Alr Inv conv pf . . Alabama Power pf ‘8).. . Ala Pwr cum pf (T).. Allied nt Inv ev pf(2) Allied Mille Inc(0e)... 5 5 Aluminum Coof Am. Aluminum, Ltd ¢ Aluminum, Ltd (1°) wi Aluminum,Ltd (D) war. 2 Amer Austin Car. . Am Br Bo El Fd Shs.... Am Capital pf (8).....0 Am Cigar Co pf... “en Amer Cit PELtA n (3).. 5% Am Cit Po&Lt B(b10%). Am Cmwith P A(b10%). Am Com Pr B (b10%). .. Am Comwlth P 1st(61). Am Corporation (f16c) Am Corp warrants. Am Cyanamid (B). & El of 6) Am Investment Inc (B) Am Inv: Inc, war. ... Am Launary Mach (2). Am Lt & Trae (2%). . Af Lt & Trac pf (1%). Am Superpwr 1st pf(6). Am Sunerno pf (6)..... Am Util&Gen (B)vte. Am Yvette Co (25¢c). Anchor Post Fence 4 Anglo-Chilean Nit. Appalachian G 4 Appalachian Gas wr. Ark Nat Ga Ark Nat G B Armstrong Cork (1). Art Metal Works (60c) Asso Gas & El (A) (al) Assoc G &El war....... Asso Gas & Flec etfs(3). Asso Gas&El all ct 1.60 Auto Vot's Ma ev or pf Aviation Securitfes. .... Aviation Sec,New Eng. . Bahia Corp... Bancomit Corp (1). Rellanca Afrcraft Beneficial I L (1%) Bickford's, Ine (1.20) Bigelow-Sanford Blue Ridge Corp Blue Ridge conv p! 4 Blumenthal (R)... % Brazil Trac & Lt (b3%). Bridgeport Mach (25¢).. BrAmTob cou B 1.17 4-c. Brit Cel Ltd ret Buckeye Pipe Line (4).. Buffalo, N&EP pf(1.60) Buff Niag&EP 1st pf(5). % Bulova Wevpf (3%)... Bureo. Tne ov of (3) 4 Burma Ltd rcts 127 3-! Butler Bros. . Bwana M Kubw Ce 7« Cable Radlo Tul % Cabl & W Ltd. B rets, Canadian Mareoni. 4 /Carib Syndicate. Carnegie Metals. Caro Pwr & Lt pf (7) 4 Celanese Corp pf (T).... Celanese 15t pf (7).... Cent Ind Pwr pf ( Cent Pub Sve A(10%) . Cent & Sown Util (b7%) Cent States El (b10%) . Chain Stor Development Chain Stores Stock..... Chat Ph Aln.v (1). Chesbrough Mfg (15) Childs Co. pf. (T).... Cities Service(g30c). 4 Citles Service of (6) . s Serv P & Lt pf(8) City & Suburban Home: Claude Neon Lights.Ine. Clev Elee Illum (1.60).. Cleveland Tractor. Colombia Syndica Colon Ofl. Comwlith & Sou twar), Com Wat Ser (g12%¢).. Comstock Tunnel. . Consolidated Atrera Consol Auto Mer ctfs. Consolidated Copper. Conso! Dairy Products Consol Gas Balto(3.60) Consol Royal (20c) Contl Chicago Corp 4 Cont Shares conv pf. Cooper Bessemer . Cord Corp........ Corp Secur of Chi (b8%) Cross & Black pf Crown Cork Intl (A) Cuban Cane pr opt war. Curtiss Wright war. Cus! Mex Minink. Darby Petroleum Dayton Airplane & En; Deere & Co (1.20) e Forest Radio. Deisel W Gilbert Derby Ofl & Refin Detroit Alrcraft C Duquesne Gas Corp Durant Motors. .. Eisler Electric Corp. Elec Bond & Sh (b6%). E) Bond & Sh pf (6)..., Elec Bond&Sh cu pt (§) Elec Pow Asso (1). Elec Shiareholdg (b6%). El Shareh pf (26%). ... Empire Corporation. Empire Gas&F cm pf(7) Empire Gas&F em pf(8) Empire Pub Sve (A). Engineers Gold Europe Elec. Ltd A (80 Euro Elec. Ltd deb rts. s Lead Federal Baking Shop Federated Metals Foremost DairyProd. Foremost Fabrici Foundation'Fer Sh Franklin Mfg Co.. Gamewell Co pf (6) Garlock Packing (1. Gen Alloys Gen Empire Corp u)*) Gen Leather Co. Gen Rayon A). Gen Theat Equip cv pt Gen Water Wks&Elec A. Gillbert (AC) (1)....... Gleaner Comb Harv., Glen Alden Coal (4)..... Globe Underwr (15¢)... 7 % Gold Seal Elec new. % Golden Centér. .. * Golaseld G (REREREE S ] Li+++1+ I+ +1++0101 1+ (BEBE SRR AR SR ER X 1) A P41+ 144+ o ++ SEEE EE 2 RD o U S S o LIl +++1+4+4+1 FESERPREEE FEIE R UL ++ 0L+ +itl SESFRIREIL W ESS ok ot JoL NS S i+ 4410140011444+ 0401 000+ + 1+ L o T T S 4 BaNe +111 Stock and dividend. Goldman Sachs T C. Gotham KnitbacMch.... % Gr'phone Ltd c.0.d.(56¢c) . Graymur Corp (1). Great At&Pac Tea nv($) Grt A&P Tea of (7). Srief & Bropf (7).... Groe Strs Prod v.t.e. Gulf Ofl of Pa (1%).. ‘Hamilton Gas ret: % Happiness Candy. Hazeltine Corp (2) Hecla Mining (40c). Helena Rubinstein. grade Food Prod. 111 Pwr & Lt pf (6) L Indiana Pipe Line (1)... 4 Ind Pwr & Lt cu pf(6%) Ind Terr 1lu Ol (A).... Ind Terr Illu Of) (B).... Industrial Finance ctfs. . Insull Inv (b6%)....... Ins Co of No Am (12%). Insurance Secur (40c).. Intercont Pete new. .. Int Cigar Mach (2%). Int Hydro EI 8 A war. Intl Hydro cv pf (3%4).. Intl Petroleum (1)...... Int Safety Raz B (13%). Int Superp (11.10) . Int Utilities A (3% Internatl Utilities Internatl Utilities(war) 1l s2Vsesss ex s 2= ta Irving Air Chute (1) Italian Superpowr A Ital Supernow: Jer Cen P&Lt pr (7). % Kirby Petroleum. . Kleinert (I B) Rubber Kolster-BriAm shs).... Kress (SH) sp pf (60c).. Lackawanna Mee (4).... Shore Mining(1%). » . RESEFFRE PR - F EE RIS % Land Co of Florida. .. Lefcourt Realty 1.60. ... Lehigh Coal&Nav(1.20). % Leonard Oll..... Lone Star Gas n (38¢) # Long Island Lt (60¢c). Long Isl cu pf B (§) Long Isl Lt pf (7). > - # I Asso . Mass Util Assocv pf2% Mavis Bottling (A)..... May Radlo & Telev (1).. Mead Johnson(t4%5). .. sear 7 Memph N G Co (60c). Merritt Chap & Scott. Mesta Machine (2). Metal Tex pt pf(3%). Mexico-Ohio Ofl 4 Middle Sta Pet Pet v. £ " Mid West Ut A war. Midland Nat GasA...... Midland 8tl Prod. n (2).. Midiand United (b6%). . Minne-Honey pf (6 Mo-Kan Pipe Line (A). . Mo-Kan & Pipe Line (B) Moh Hud P 1st pf(7). Moh Hud P 24 pf(7) Montecatini deb rt; Mont Lt H&T (1%). Moss Gold Mines Mountdin Products (1). Murphy Co (1. 2222 eaSPes"Csrsrraey - ement-.Pond (1) Nipissing. .. . Nordon Corp Ltd. . % Nor Am Aviation A war, Nor Am Lt& Pwr(b3%). Northam W ev pf (3)... % Nor European Ofl Corp. . Nor Ind Pub 8ve pf(6).. North Stat Pwr A(8). Nor States Pwr pf (§) Northwest Eng (1). Northw Yeast Co 12). Novadel Agene (4) Ohto Copper.... Outboard Mot B.... PacG&E1stpf (14).. » PAcG&Epf137%... Pac Pub Svec A(1.30) Pac Western Of Pan Am Airways. Pandem Of1, Pa ofl.... Paramount Cab Mfg. ke Davis (1.55) Parker Rust Pr (3). Peninsular Tel pf(7). Pennroad Corp (40c). Penna Pwr & Lt pf(T) Penna Water & Pwr (3). Peoples Lt & Pwr (A)... Pepperell Mfg Co(6).... Perryman Electric. 4 Petrol Corp . Philip Morris Phoenix Secur Cor hoenix S C pf (3) Pilot Radio Tube(A). Pitney Bowes P (b4 % Pittsburgh Forgings. Plymouth Oil (1). Polymet Mfg. Poterero Sugar. . Pratt & Lambert (4).... Premier Gold (12¢c). . - on . FELFTS BEFFFERFIEF £ Prod Roy Cp (b10%). Prudential Inv... Public Util Hold war... Pub Util Hold Corp xw. . Pub Ut Hold cu pf(3)... Puget Snd P & Lt pf (6). Pure Oil pf (6) Raflroad Shares(40c) Raflway & Lt Secur (13). Rainbow Lum Prod Reiter-Fost: Rellable Stores. Reliance Intl (A). Rellance Management. . Republic Gas Corp. s R Fresesas sress ¢ 22¥ 282 8 sie - & 244 Selected Industrie: 42% SleInd full pd (5%) 0. Rl InAIFIor (5% ) runant L3 + +'+ ++++1+ 014+ +110 ++1i++ 1411+ FRRLIL+ I+ AL Ll++ #1041 0+014++ +1+11+1+1+01 L+itetli+l P #S#g Hlts 441 ’ - = i SRS 250 Ex 44400 1+l LE1+) BRI B R N +4+ N+ 2 sxax I TEOEE *P as 2 Vit + 4410+ *1 LI++4+ + P2 Faww 2"+ .,. xx £ xzse w2 2B za"" +1 + C. JULY 5, 1931—PART SIX. Stock and dividend. Sentry Saftey Control. Shattuck Den Min. Shawingan W (2%). Shenandoah Corp Shen Corp pf (a3) Signature Hosiery Co Silica Gel et....... Silver (1) Brow pt(7) Stock and dividend. 4 Trans Lux DL P . % Tri-contin’l Corp war... Tri-Utilitles Tubize Cantillon (B). Tung Sol Lamp (1). Tung-Sol Lamp pf (3) ¢ Ungerleider Fin Corp. TUn Nat Gas of Can (1) .. V4 SR8 - 44 Singer Mfg (115) Smith (A 0) (2). Smith-Corona Tpwr vte. 9% Socony Vac Corp (new). 18% 6 Solar Refining. So Am Afr Lines 1st pf i South Penn Oil (1). SoCalEdpfA (1%). 8o Cal Edis pr (B) (1 4 Sou Calif Ed pf(C)(1%) Southland Royalty(20¢). Sou West Bell Tel pf(7). 4 So West Gas Utl) Sou Wn G&E pf (7) Spanish & Gen rets. ... Spieg May Stern pf. ' Stand Oil of Ind (2) % Stand Oil of Ky (1.60). Stand Oil Nebr (2). . Stand O11 Ohio(24). Stand Pwr & Lt (B) (2). Starrett Corp. ... Starrett Corp pf (3).... 16% Stein(A)&Co cu pf(6%) Stein Cosmetics In Sterchi Bros Stores Stetson (J B) Strauss Roth Stromberg-Ci Stutz Motor Car Stutz Motor (war). Sunray Oil (b6%) . Swift & Co new (2) Swift Internat (3). Sylvanite Gold M Ltd. Syracuse Wash Mch(B). Taggart Corporation Tampa Electfic (32). Technicolor Inc Tech Hughes (6 Tenn El Pw 1st pf(' Texon Oil & Land (1) Thatcher Sec Corp. . . Tobacco Prod Exp (10c). 12* Tobacco Secur, Ltd 44 Todd Shipyard (4). 101% Toledo Edison pf(6). 100'; Toledo Eidisn pf(7). % Tonopah Mining. 3% Trans Air Trans. TUnit Ca Unit Ch, Unit El +411¥ A U S Foi. 1S Lin Utah M 34% g 2 34% Utah Pwr&Lt pf (1) 4 4 b Utility s Utliity Vie Fin: ¢ Waltt & B, A (2) Walzreen Co. . Walker Walker & Union Oil Assoc (2). 4 Unit Corp war. Unit Dry Dock Utd Light & Pwr pf (§). Unit Milk Prod... U S Elec Power ww. U S Elec Pwr (war). U S Finishing pf. . 4 Unit Store B Unit Verde Exten (1)... Universal Pictur 4 - Utah Apex.... 1% Util Pwr&Lt (at1.02%). 9% Ut P&L B(at1.02%) 6 pgla i Utllity Pow & Lt pf (7 % Utll & Ind pf Vacuum Oil (2). Van Camp Pack. Venezuela Petroleum, SEEEE S8R rr Fast (10c). em pt pf (3). ec Sv (pl.41) - IRAAASRASS@ TS AR T NS syeee 1Co B (50c). U 8 & Interntl Sec U S Inter Sec 15t pf..... es pf. . et & Tunnel..... & .. 105 & Ind (EIREELINRESE B J Eaquitle: an Corp(40c) i+ + +1 (H) ( Mining Wenden Copper. Western Md pt West M. ++ ass Co (2%) Williams R C (70c). Wil-Low Cafeterias Wil-low Cafe pf (4). Wilson Jones (135). Woolworth (FW) Ltd Woolworth (FW)Ltd pf. “Y* Ol Dividend rates i +4++1 410 & Ga n dollars based on last quarterly or semi- e nual payiaent. *Ex-dividend. 1Partly extr 'ayable in cash or s . {Plus 5% in lus 4% in stock. tock. b Payable in stock. e Adjustment divi- stock. 1% in ck. jPlus 3% in stock. k Plus 10% tock. n Plus 8% in stock. P Paid last year—no regular ra NEW TARIFF RULE MAY BE MODIFIED American Publishers Obiecli to Some Provisions of Cana- dian Customs Law. BY LOUIS E. VAN NORMAN. ‘Postponement from July 1 to August 15 of the date upon which the new Canadian tariff rate becomes applicable to imported magazines and other peri- odicals will give American publishers a chance to convince the authorities at Ottawa that they actually do come in the “exempt” class. In one of his public spesches on the budget, Premier Bennett of Canada de- clared that free entry will be permitted to all foreign publications of a “defi- nitely educational, religious and scien- tific character.” He also stated that this classification will include agricul- tural, business and professional papers. There may also be other exemptions. The list has not yet been published. Enjoy Wide Popularity. For the last few years American monthly, weekly and daily periodicals have been entering Canada in great numbers and enjoying & wide popularity in that country. Among Canadian and British publications, however, there has been evidently a growing dissatisfaction at this popularity of the American pe- riodical press. This has arisen not only from s natural desire to secure the tronage of Canadian readers for pub- ications brought out in Great Britain or her dominions, but also because of the ever-widening influence of these American periodicals in fostering Amer- ican trade at the expense, it is claimed, of British and Canadian merchants. ‘The adverfisements in the American periodicals are insistently calling atten- tion to American styles, manners and customs and the excellencies of Amer- ican products. This—perhaps naturally enough—has been accountable for at least part of the sentiment, openly ex- pressed, which has finally resulted in the imposition of a duty of 15 cents a pound on foreign periodicals entering the dominion. The pre-eminence of American pfiblications is such that Americans are practically the only non- Canadians affected, at least to so great an extent. The questions that just now interest American magazine publishers are: How is this new duty to be applied?> Who is to pay it? 1t is understood that a certain amount of discretion will be permitted to the Canadian customs inspectors. Such a power of discrimination, of course, will amount to a censorship. There have been reports that certain American ublications have been regarded as nghly undesirable in Canada from the nature of their contents. 'These could be excluded under the provisions of the new rate without any undue publicity as to the reasons for exclusion. Payment of Increase. The question of payment of the in- crease in rate is even more important. If paid by the publishers, it will mean & prohibitive cost of production. It paid by an increase subscription rates to the subscribers, it will result in a loss of circulation. This will se- riously affect American advertising, which has always claimed Canada as in its field. There have already been a number of conferences between Premier Bennett and various American publishers, large- 1y under the leadership of the National Publishers’ Association. If the new rate should actually become effective on August 15, without any elasticity or other mitigating circumstances, it will no doubt mean a greatly curtailed cir- cul Canada. It looks now as though there might be considerable readjustment be- fore the new tariff rate gets into smooth working order. (Copyright, 1931). AUSTRALIA REPORTS SHARP DROP IN TRADE By the Associated Press. el SYDNEY, Australia, July 4—A dras- tic decline in both exports and imports during the 11 months ending June 30, was revealed in figures for Australia’s trade wdls;.d E:t 1t was A‘hfi:n that exports exceede ports o 000, reckoned in Aust 's de- currency, or by $111,000,000 on Commodity Price Trends of Week BY H. Editor McGill C AUBURNDALE, Mass., July 4 (#).— For the second consecutive week com- | modity prices increased rapidly, well illustrated by the fact that out of 15! individual groups, 11 advanced, 2 re- mained unchanged and only 2 declined. Following President Hoover's suggestion for a financial moratorium which would | suspend intergovernmental debts for | the period of one year, psychology and | sentiment changed quickly. Demand, | particularly for the speculative com- modities, rapidly expanded. As prices were criticlally low, little difficulty was McGILL, AUTO INVENTORIES - SHARPLY REDUCED No New Model Plan Has Helped Retilers to Dispose of Stocks. BY DAVID J. WILKIE. Written for the Associated Press. DETROIT, July 4—In the midst of the experienced in_establishing the price | “Qulet period” that has become more or level of the principal basic commodities well above the low points reached in recent weeks. Apparently there is s general dis- position to overrate the immediate less of a tradition in Midsummer, the automobile industry continues ta ponder over the effect on the retail division of the move decided upon by benefits of the proposed international | many manufacturers to bring out no financial plan. It is impossible to jump from depression into prosperity over night. ~Already leading commodities, ‘which have increased sharply, such as cotton and copper, have shown reac- tionary movements. It is far better to increase commodity prices gradually, ‘which reflects healthy conditions, rather than rapidly, which is usually followed by disappointing reactions. All Commedities. Noting specific conditions in in- | dividual groups, the average for all commodities advanced quite sharply. Industrial Prices. Industrial prices were also higher, but it is important to note that non- ferrous metals, after a sharp advance last week, have in recent days turned downward, copper taking the leadership. There is still a burdensome supply of raw materials and actual consumption has not experienced any marked Tecovery. Fine Textiles. Fine textiles were moderately higher, as cotton is holding well above the | quotations of a week ago and silk has | also held the recent advance. A check- up shows that total supplies of all | textiles are quite heavy in terms of the | low rate of consumption. Hides and Leather. A relatively sharp increase was ex- perienced by hides and leather, largely Gue to the higher prices for hides. Fer- Tous metals recorded the first increase | in many months. The two groups which Temain un- | changed for the week were chemicals | and paper and pulp. The two groups which declined were fuels, which reached a new low, and non-ferrous metals, which were moderately reac- tionary, following the sharp advance of a week ago. Important Price Changes. 1926 average, 100. This Previous Year :':fig':' Jupe'Se, June'S; 5 e 27, 1931." 1931, " “1930. All_commodities. . .60.0 "5, Agricultural ......57. Industrial Live stock Non-ferrou: INDUSTRY EXPECTED Observers Believe Pick-up Will Be Evident Next Fpll and Winter. BY ALVIN RESCH. (Written for the Associated Press.) CHICAGO, July 4.—Scatter signs of Summer optimism have led the retail nx;o‘cut a pick-up in and Winter Even then the increase in trsde may be only slight, but it is the hope of this $1,500,000,000 industry that Fall and Winter will mark the first step to somewhere near the Spring and new models in June, July and August. Although the policy, agreed to and adhered to by many of the industry’s eading companies, was looked upon as & means of circumventing a Midsum- mer falling off in retail distribution, the Summer months of the “recovery year,” seemingly are destined to be no different than those of lous years. In other years most of the new models have been off the assembly lines and in distributors’ hands during the mid- year season. The effect, in & way, has been to influence potential buyers to withhold their purchases un- til the new lines could be examined, . Fair Trial Prevented. Sponsors of the Midsummer model policy point out that a combination of circumstances has operated to prevent & fair trial of the plan. Potential buy- ers, they say, have withheld purchases because of unemployment and conse- quent curtailed income. Moreover, they explain, some manufacturers, with their new models already on blueprints and faclory re-tocling begun, were unable to hold back the new cars until November and December, as the plan originally contemplated. Despite its only partial observance n¢é the fact it apparently has failed to avorably affect the retail trade, the | plan has helped materially in reduc- ing dealers’ inventories, so that when additional new models are brought out in the latter months of the year, retail distributors handling these makes should be in better shape for stocking new cars than they have been for many months. The reduction of inventories, both in the factories and in the sal TOoOm! has been an objective of the autom bile industry ever since it was jolted into the realization in the Fall of 1929 that it was traveling with the produc- tion accelerator tied down and its brake bands worn out. Figuratively the in- dustry is back on the paved highway, and while it is moving at reduced speed, the reduction of inventories, the cur- tailment of production costs, the elimi- nation of wasteful practices both in fa tory and in sales room justify the state- ment heard frequently during the last few months that, viewed from every angle, it is functioning like 'a new car. With the tapering off of output and retail demand during the last few weeks a disinclination to estimate the indus- try's total output for 1931 appears to have developed. Earlier in the year predictions were heard of a tfotal pro- duction in excess of 4,000,000 units. This has been revised downward, how- ever, and a later guess placed the figure at 3,500,000. Whether the actual out- put will even approximate that of last year seemingly depends upon what the early Pall months bring in the way of retail demand. Outlook Is Better. Regardless of what the ultimate total shows, it appears safe to say the in- dustry at the end of 1931 will find itselfl in decidely better shape from every viewpoint than it was at the close of last year. No small part of this con- dition will be due to the fact that, ex- cepting normal retail stocks, every ear produced will have been sold. This will have been accomplished as & result of the careful restriction of supply ta demand. Looking into next year and even the year after, some authorities in the in- dustry profess to see an absolute level\ ing off of the production peaks and valleys to the point where output—and coincidentally employment —will be more nearly uniform and steady the While in other to of uncontrolled drive for a production rec- ord in 1929. the Nation's output was 361,000,00¢ pairs, in 1930 it was slightly more than 304,000,000—a difference of 57,000,008 pairs, or almost enough to outfit the Nation’s population.