Evening Star Newspaper, August 1, 1931, Page 10

A—10 % FRUIT SHIPMENTS -~ +IN STEADY VOLUME Vegetables Also Moved to Market in Fair Sized Quantities. movement of the leading and vegetables maintained a steady voiume in late July, savs C: ite the United States Department of Agri-. culture, Bureau of Agricultural Eco- nomics, market news service. ~Com- hined output of sbout 36 products. amounting to slightly over 3.300 ears - the last week of the month. was xth lighter than a of the smaller move- e comewhat ttronger. Potate Markets Firm Practiczlly all lines of Smed a Stronger fendency at_the July. Virginla Cobblers 2160 to $1.70 per barrel in the Fastern Shore region toward the a ‘August, Local reports indicate that the Eastern Shore shipping season is about finizhed. with possibly 500 to 200 cars vet to be hipped from Vir- ginia and about 300 from ‘Maryland. he P commiderably short of early expectations Tt 15 reported locally that the entire output from the Virginia Fastern Shore av amount to about 15.000 cars, potatoes e brought 2,500 less than last Maryland Eastern Shore vear's crop. . total 1.600 shipments may fotTor about two-thirds the number ved last season. Some trade opin- hat the New Jersey potato move- which got well under way this " will exceed that of Jast zeason if | the mar! hold satisfactorily. Good “vields and fine quality potatoes are the predictions of New Jersey growers With the Virginia and Marvland pota- toes largely out of the way, Fastern markets look to New Jersev and Long sland for their potato supplies. Totatoes were reported in light to moderate supply in the large Fastern markets toward the first of the vfln::{'l with prices about steady at the slightly hi p.-:m" levels. In New York City €ls of Virginia Cobblers were sell- mostly around $2.35 but Tong Tsland stock in 150- cks brought £2.25 per sack, and New Jersey pota- toes mostlv 82 O Eastern, cities uoted Virginia and Maryland Eas Lo pota chere from $1.85 to Fastern Shore district fs expect- ng a I on, according to local reports. The From n has been favorable, and fhe crop appears to be in good condi- tion. Movement is expected to start by the 10th or 15th of August nions Dull were generally dull and | ed toward the first of Au- | a limited demand was re- | hel hampers of New Jerser at 65 to 90 cents in | arrivals from New 50 to 75 cepts per | husetts stock was 50-pound sack Demand for 1pments de- late July car- o vas coming from Massa- | chusetts, Towa, California and Washing- ton. Peach Markets Weak. heavy arrivals of ted in weak markets and Jowv 1 baskets six-basket as were selling at 30 2 usual terms basis at Geor- ng points. Hileve and Belles t same price in North Few peaches sold above $1.50 markets and the gen- peaches edium to large fruit was i cents to $1.25 a basket or crate acples. mostly of the Transpar- covered by a price cents to $1.25 a bushel. ac- d quality of th les Tlinpis were fur- nishing the bulk of the Wastern apple ipments in It Julv although a few dailv were moving from a dozen s Or more. L NATIONAL DAIRY CORP. STOCK IS ANALYZED Corporation ent analy- 3 Teading factor in the domestic dary products industry, producing and dis- tributing ice cream. cheese, butter and milk products, and marketing fresh milk. Growth has been effected mainly through acquisition of active companies hange for common stock and de- Importance in the cheese di- A was greatly increased last year ough the absorption of Kraft-Phenix C! « Corporation. Recently obtained control of Consolidated Dairy Products Corporation, Miller Dairy Co. of New Canaan, Conn.. and made an offer for Golden State Milk Products Co. (to he X on in August). Plans for further zification are indicated by inau- guration this vear of orange iuice dis- tribution in a few selected cities. Capi talization is heavy. consisting of $80. 151,040 funded debt. $11.191,200 pre. ferred stock and 6,263.065 common shares. Junior i3sue is on a $2.60 an- nual dividend basis. Financial position Is satisfactory “Net 1ncome last year was 229 larger | than in 19290, largely reflecting the ae- oulsition of Kraft-Phenix. Amounted to $4.10 per common share, compared with $4.04 on smaller capitalization in 1920 Farnings currently are under- stood to be covering dividend require- ments he well below the $2.16 reported for that period last vear Influenced hy low prices for some products, curtailed public purchaszing power, and the pos- sibility that ice cream business (which pormally ac income), will be affected this Summer by the general trade recession, we ques- tion that common share earnings for ske full 12 months will exceed $3.50." CONTINENTAL BAKING. Regarding Continental Baking Cor- poration, Standard Statistics seys in & recent analycis “Continental i the largest domestic of bread Principal nationally advertized products. Wender' bread and ‘Hostess' ceke, are manufactured at stern Shore crop has fallen® 1o 1.800 car | rge crop of sweet potatoss this | but for the first six months will | unts for about half of net | PINANCTAL. F BY F. H. RICHARDSON. | {a! Dispateh to The Star. | NEW YORK, August 1.—The month | !ot July witnessed violent fiuetuations in {the foreign dollar bond market—a spec- | !tacle that has become a familiar ac- | companiment to the bear market. | The month opened quietly enough. with foreign as well as domestic .bonds | |still depressed from their June decline. | ibut the list burst into vielent activity | | with the first detailed annpuncement of | President Hoover's debt. holiday scheme. | | advanced rapidly up to and after its| | consummation in the Paris agreement |and then slumped with the negative | outcome of the London Seven-Power | Conference | |~ German bonds. for instance. had alid | |over 40 points before concerted action | by the powers promised some banking P relief in the Reich and then recm'ered‘ probably a quarter of the losses. But at the end of the month virtually all of | this recovers had heen wiped out. Both Lombard street and Wall Street had lit- tle faith in the efficacy of the measures adopted at london to see Germany through her crisis, or in the ability of the “committee to be appointed by the Bank of International Settlements” to get to work rapidly enough to stave off the catastrophe seen in the wake of the London meeting. Reduetion in Valnes, The story i better told in fgures. | When the market had discounted the German banking erisis— which in- volved the failure of the third largest Institution in the Reich--the reaction | had wiped out £536,792.910 in market value of the $1.309.251,000 of German obligations outstanding in this market The fluctuation of this group of bonds between the highs and lows of the month alone accounted for $418,960.- 320 in dollar bond values. Very little of this was recovered in the closing davs of the month At the same time the world-wide ef- feets of the German erisis had brought liguidation into every other foreign dol- lar zecurity regarding which the slight- est degree of uncertainty was enter- tained. There was a depreciation of $177.828.500 in _Argentine bonds $55,940,060 1n Bolivian issues, of $19. 196.000 in Brazil's credits, of $98.472,320 in Chile’s nbligations, $78.915.480 in ruvian bonds, $26.071.200 in Uruguavan $151.913,300 in Australian, $12.396.360 in Austrian, $4.177 §20 in Hungarian, $54.- 86,950 in Polish. $20.700.000 in Ru- manian and $54.868.410 in Cuban de- scriptions ere was, n toto. a loss of $1.651.344.020 facing the holders of foreign dollar securities in this mar- ket. The high and low points during the month in this same group stood £1.180.879,710 apart. And this huge riation in values occurred in an sggregate of $3.616,820.000 par value of bhonds Tt would be tinaccurate to ascribe these enormous losses entirely to thi German asituation. Argentina. for in- stance, had an abortive revolution on her hands. Uruguay's bonds were un- settled by the government’s budgstary difficulties. Chile declared a partial moratorium, ewing to the heavy cost of buying dollars with which to pay debt service when Chilean currency was 30 far below par. Other South expected to one’ or more nf thege examples. In Europe, Austria had her own diffi culties and not all of them were reper- cussions of the German bank failures. Pessimism Rife, Pesstmism was s0 strong 8t hmes | during the month that more than d serving attention wes paid to cabled 1s that China would go to war Japanese bonds were | ed noticeahly on th: t one, time. alco, ¢ ite ~heavy liguidation of jan and Scandinavian issues, safety of which no one has any fousdoubt In manv respects the situation was analagous to the state in which France found herself just a little over five years ago. Then French government | | 78 were selling at about the level to { which German government 7s have tecently dropped. French municipals | auch as Lyons and Bordeaux 6s then | | sagged to levels not much better than | | thoee of Berlin and Prussian 6s today. | | True, the basic causes of the two crises | | were different, but in many .aurface | manifestations they were the same. | | Few could be found in 1925 and 1926 | who had a good word to say for French | urities. Bide were then far below | | the market and declines of 4 to 6| | points between sales were common. | That is exactlv how German securiti are regarded now. | _No one can doubt that eventually German 7s will have the ranking that Prench 7s today enjoy. with a market quotation of 118 Mark exchange, | which had dropped heavilyein mid- month, recovered near the month end. Although it was evident on July 23. | when the London Conference adfourned. that the German government was hav- | ing difficulty in applying ite artificial | measures to keep mark quotations above water. and although the increase of | the Bank of England rate was further | evidence of the uneasiness in Europe. | i the fact that Germany was helping | herself was hetter news tn the market | Imqei at the | reports | a than all the oratory { London meeting, The domestic market can' be dis- | missed with a few words. Tt fluctuated. | sometimes auite widely, as each develop- | ment of the foreign situation was made | known. But in the end Standas3 Statistics’ index of 30 representative | honds stood. just about where it was at | the beginning of the menth. 1In other words, prices remained fairly steady. This course of action was taken from | 8 stock ‘market that showed all'month | unmistakable signs of a desire to ad- | vance. Junior honds were well sup- | ported on levery dip. - | Railroad Earnings. As & matter of fact. thete was much in the ‘domestic situation that argued for a better trend to security prices. | Railfoad earnings for June. it was true. | | were off about 15 per cent. but even ' this poor showing represented a check SATURDAY, | | | | 30 Industrials, X ntz located throughout the Nation | expended cloce to $15,000,000 for increased end improved facilities dur- ing the past four years, while unprof- itable milling businecs’ has been dis- | | posed of. Bread sales now are increas- ' ing, including volume of new ‘Wonder Fiff-teens’ light rolls. Compstition is strong in this field from chain stores, 2s well as wholesale bakers and, despite low raw materjal costs, reduced prices have cut into alreadv narrow profit margins. Ceke accounts for about 20 per cent of sales 5 “‘Net for the 25 weeks ended June 20, 1931, was equivalent to onlv 12 cents r thare of clazs A, compared with 171 in the comparable 1930 period. Recent profit: have evidenced decided improvement, results for the final 10 weeks of the foregoing period in the two vears, equaling $1.31 and $1.57, re- | .spectively. For full year 1930, earned £7.03 on clase A :hare, againtt $8.12 in the preceding 12 months. Dividends ere not paid on ‘A’ issue. Heavy cap- talization i3 heing reduced by adhdval rement of substdiary funded vdsht, waile cash position remains strons.’ High, 192 Low, 1929 y Today. ... Previons da; \Veek 2go lenth ago. Yeat azo R Two years ago. Three years ago High, 1931. . Low, 1931 .. High, 1930. Low, 1 . High, 1929, Low, 1029... | will be in the New York market mext STOCK AND BOND B> the Associated Press, STOCES. THE EVENING OREIGN DOLLAR BOND MARKET REVERSES TREND DURING JULY Rapid Advance on Hoover Debt Holiday Proposal Is Succeeded by Violent Downswing as Month Ends. in the continuous decline. Many in- dustries reported earning figures that revealed an improvement. The woolen and shoe trades, for instance, were very active and busier than in twd vears or more. Some earnings by industrials. while showing a small deciine in dollars | and cents, disclosed an increase in | turnover when - the ' price recession in commodities was taken into aceount. | High-grade bonds, like United States; Governments, prime municipals and the grade of corporate issues considered le- gal for savings bank and trust fund ac- eounts, showed strength near the end of | the month. When the market started upward with the announcement of the debt holiday, there a momentary | hesitation on the part of the gilt-edged list, as switching operations into higher yield bonds and common stocks took place. But later, when the reaction set , prime {ssues were firmer than ever United States Government issues. ad- vanced to new highs and toward the end of the month there came a de- mand for the best of short term paper that was more acute than at any time in the history of this bear market. The United States Treasury sold two blocks of $50.000.000 90-day bills at annual bank discount bases of much less than 50 per cent. Many public utilities and munjeipalities jumped into the market to take advantage of such cheap monev. During the month the total of new bonds offered amounted o $225,302,500, compared with $396,281.000 in June and $512,808.000 in July, 1930. For the first seven months of 1931 total new bonds amounted to $2.067.460.000, compared with $4.448,327.000 in the same period | of 1930." It is interesting to note, when the poor conditions for new financing | during 1931 have been considered, that. | s0 far this vear the market has only been able to ahsorh bond and stock flo- tations at the rate of $4.800,000 a day, | compared with $9.000.000 last year. $11,500.000 n 1920, $10.200.000 in 1928, $9.600.000 in 1927 and $7.200.000 in 1924, And 1926 also was a year of some de- pression, (Coperizht, GERARD ANNOUNCES PROSPERITY PLAN 1931y Program Incindes Ant)-Trust Reforms viet Tmport Ban, By ‘he Associated P BOSTON. August 1-—James F.| Gerard, former Ambassador to Germany. | vesterday offered a three-point prosper- | ity revival program which he said, President Hoover could utilize for the Nation's benefit The program. related by Gerard shortly hefore h= sailed on & Mediter- ranean cruise aboard the liner Vulcania, wonld have President Hoo: against prohibition, spor of the anti-trust laws and ac hibit importation of Russian products The repeal of prohivition, Gerard sald, would give immediate emplovment | 0 1.000.000 men and would kesp at | home tremendous sums paid by Amer- | icans in foreign countries for ‘a sniff | of the air of liberty * Amendment of | the anti-trust laws fo permit certain | forms of price fAxing would. Gerard said. stimulate the ol and muning in- dustries. Of Russian imports, he American industry should not be forced to compete with some of them, because | they are turned out by “slaves " Gerard, who named 40 real rulers of America” a vear ago. said the trouble with the country i= that it has | no real financial or industrial leader- ship 3 He sard he had heen wondering why | these 40 rulers, with their tremendous | power had done nothing to lift United States out of the depression They certainly control siiff Ith,” the former The trouble ie we do not has | leadership in industry and finance that we have in labor. If we did. some- thing helpful would come of it." The man who spent eight vears rep- resenting the United States in Ger- many sald the flight of German rapital | could be traced directly to the fear | kindled in Jews by the declaration of | Adolph Hitler he would ronfiscate their property if his party came into power and the fear of the confiscation of all property through the organization of £.000,000 Communists in Germany. “who knew they had the sympathy of 130,000.000 Communista in Russia.” the Business Notes ¥ the Associated Press > NEW VYORK, August 1. -The ax-| treme heat of last week was responsible for a further decline in men's wear and retail trade. and reports from store executives indicate that was the poorest period of the month Some business developed for strictly Summer goods. ere the heat necessitated frequent | changes. such as underwear and shirts. and linen suits continued to move, but other divisions of the furnishings and clothing trade were rather quiet. The exceedingly low prices now pre- | vailing on work clothing and the fact that replacement demand ‘i beginning to make itself felt, are responsible for the recent spurt in sales of work gar- ments, according to trade comment. Production of goods continues at a ' high rate and some manufacturers are reported to be several weeks behind in deliveries. Word that buyers for large retail establishments and for jobbing houses week for regular Fall merchandise | brought encouragement to selling agents m the inaware field. Those dealing in popular price domestic products have been doing most of their business in the last few weeks on sales merchandise and have been unable to interest buyers in the regular Fall goods. AVERAGES AUGUST 1, i 20 Utilities, STAR., WASHINGTONX, New York Reserve Bank Extends Aid To British Credits By the Associated Press NEW YORK, August 1.—The New York Federal Reserve Bank, comment- operation with the Bank of France to the Bank of England. explained today that in association with the other Fed- eral Reserve institutions it has agreed to purchase, if requested, np to the ap- proximate equivalent of $125,000,000 of rime commereial bills from the Bank of England : FREIGHT TRAFFIC SLUNPS COMPARED Present Trend Differs Widely. From Conditions Noted in - 1921 Depression. The trands of freight traffic during the depression of 1921-22 and of | 1930-31 have differed in an interesting way,” saya the Raflway Age. “The, number of tons carried 1 mile s the | true measure of the volume of frefght busiriess, and statistics of ton mileage are now available for the first five months of 1931, “Freight business in 1920 set 8 new high record. The number of tons car- ried 1 mile in the first five months of 1921 was 211, per cent less than in the first five months of 1920. In the entire vear 1021 fon mileage was 23 per cent less than in 1920. Tn 1922, the second year of the Iast depression, ton mileage was onlv 18 per cent. less than in 1920 Business began to im- prove early in 1922, and. in spite of | serious atrikes on the rallways and | ewhere, had become almost normal at the end of the year. New High Record in 1929, “"The volume of freight movement also set & new high record in 1920 In the first five months of 1930 it w; l)nl.‘" 10 per cent less than in the corre- sponding months nf 1929. but in the | entire vear 1930 was 14 per cent lers | than in 1929, In the first five montiw | of 1031, however. ton mileage was 7| per rent less than in the first five | months of 1929 “The worst of the depression 1921-22, ax the foregoing facte sho waz during the first vear of it 1In tF depression of 1930-31 the frst vear's| decline of freight business has been | followed thus far by a second year's| decline of much greater severity How- ever, there is not much difference rels- | tivelv thus far in the total effects pro- ! duced by the two depressions on freight business, the lose of 14 per rent in freight volume in 1930 having been | exceeded by the loss of 18 per rent in | 1822, while the loss of 23 per cent in | 1921 has thus far been exceeded by | the loss of 26 per cent in 1931, Ontetanding Differences. ““The most outstanding difference | has been between the lengths of the periods during which freight business | has shown no substantial signs of re- vival Tn the depression nf 192122 it hegan to increase after having heen abnormally small for only 14 months while in _June, 1931, the twenty-third | month since carloadings hegan to de- | cline, they showed relatively the largest declina during any month of the pres- ent depression. Since the middle of June loadings have shown a tendencv to improve, but this tendencv has heen | too alight as yet to warrant eny op-|' timistic foree: In May carloadings were onlv nne- tenth of "1 per cent greater than in | May. 1921 but later statisties show | that the volume of trafic, as measured | by ton miles, was 6.4 per cent greater than in Mav, 1921 In June earload- ings were actually 4 per cent lecs than in June, 1921, but apparently the ton mileage did not quite decline to what | it was in June, 1921. In the first five months of 1931 carloadings were only 2.7 per cent greater than in the corre- sponding part of 1921, but ton mile- was 7.9 per cent greater The volume of freight business, measured both by the number of tons hauled and the average length of haul per ton, has, therefore, not as yet declined fo what it was in 1921." BOND PAYMENTS ARE NOW BEING ARRANGED of Special Dispatch 0 The 8t ST. PETERSBURG, Fla.. August 1. The bondholders’ committee for City of St. Petersburg (Fla.) bonds announced vesterday the collection of sufficient funds {rom the citv to permit a pay- ch depositor on account of his first delinquent coupon. The funds. { the notice explains, have been collected under a court order which represents the successful conclusion of Jegal pro- ceedings instituted by the committee about June 1. The committee. which represents more than $12.000:000 par value of St. Petersburg bonds, announced also that holders of these bonds who | have not deposited should do s0 in order | participate in the forthcoming initial | ibution, since payment i i made only to holders of certificates deposit of record as of August 20,-1931. No provision has heen made for non- depositors. The amount of the payment, will be announced at a later date. BUSINESS DISPLAYING | GREATER ACTIVITY| Special Dispatch to The Star. BOSTON. August 1.—Some quicken- ing in the tempo of American business is now evident, savs the United States Business Service in “its current report. Improvement iz particularly noticeable, this sefvice states. in those industries, such as shoes and textiles, which are closest to the consumer, and which generally move up first from depression. General improvement in the basic in- dustries of the country is expected to | follow the upturn in the consumer in- dustries. This betterment, however, will be modified by the uncqrtain for- eign outlook. GENERAL BAKING C0. Standard Statiztics has thie to say in | an analysis of the General Baking Co." “Approximately 90 per cent of this important baking eompany’s volume is | compased of bread, best known lcaf being ‘Bond.’ connection with vitamin D bread i= expected to augment sales, but it 1s doubtful that near term results will compensate for additional costs. Company has felt the effects of Jower bread prices and active competi- tion. Material inventoriea' now are being- kept at a low point as a ml"el“ of conservatism during a period of un- | settled markets. Plants are well lo- | cated and in good condition. | “For the first 12 weeks of this year earnings were reported at 71 cents a common share, against 58 cents in the like 1930 period. However. it is reported | that delaved inventory adjustments will prevent similar improvement in subse- qutc{-m ::mn;n. Nn-nll‘”ei;uu;gmlre estimated at approximal " 1530 and 400 1950 (on presént and $4. on. presen terially, improved position of junior issue (curvently receiving divi- dends at a $2 annua] rate), 8nd & good financial condition is being maintained.”. D. 'C., SATURDAY, Granting of Credit to British Bank Proves Bullish Special Dispateh to The Star, NEW YORK, August | firm today in quiet trading. The granting of a $250,000, to the Bank of Fngland by the New York Federal Reserve Bank and the ‘Bank of Prance wasx construed as a Nlish announcement. but it. failed to ve much effect marketwise, owing to the fact that both Paris and London markets were closed and Wall Street was withont. a guide a= to their re- actions. British bonds were firm and there was also a better tone in other Furopean issues. German dollar bonds were a point or more higher, with a fairly active de- mand for Dawes reparations 72, The Washington propogal that Germany buy American_cotton _and wheat—presum- ably the Pederal Farm Board's holdings of those commodities—on a long-term -Bonds were credit basis was recefved by the cotton | market with new securitfer were strengthened by the news., Bond dealers pointed out that credits in goods were as acceptable as credits in money up to a certain point. South American obligations moved up only narrowly. The absence of any definite proposal of economic aid to South America has left the impression in Wall Street that things are so in- volved on that continent as to render help by means of banking credits of little valne. Still, Argentina's and Bra- #il's August 1 debt service has bheen re- ceived. In the domestic list the influence of & Airm stock market seemed to have been lost. .Rallroad issues of the sec- ondary ;type were depressed on offer- ings of only a few bonds. The Wabash Railway: sought authority of the Inter- state Commeree Commission to pledge certain atdeks and bonds as collateral for $10.000.000 in short-term notes. The securities te be pledged include 258.920 shares of Lehigh Vallev common, which the Wabash owns. 1.217 shares of American Refrigerator Transit o, 8.250 shares of New Jersev, Indiana & Tllinols Railroad and $£508.000 of fArst lien 50-vear 4 per cent terminal honds. The proceeds of the loan would be nsed 10 retire bank indebtedness and provide finds for nther rorporate purposer. Wa- bhash 5= sold around €2, off a point, CREDIT EXPECTED T0 AID BUSINESS Conditions Now Consdered Highly Conducive to Greater Expansion low prices. But Cradit conditions in the Tinited States are beeoming highly ronducive to busi- nesk anterprice. it & pointed out by the Bronkmirz Economic Service “The Federal Resetwe.” Brookmire Analvst, “has weeks indicated an ntsntion to main- tain Jow interest ra ket operations. The same sort of policy was followed in 1924 and again in 1927, when we were facing declines in commodity priets. Tt tunquestionably had a material effect in cushioning the the ent save n o recession in businese in each of those !C& W fnicy vears. Cheap monev fs not a cure-all but it certainly will he a great aid to business recovery when once gets under wav Commodity prices. which advanced asubstantially after President Hoover's debt holiday announcement, have suf- fered a zubstantial reaction showing little signs of resuming an npward trend The record low wheat prices are aggravating the agricultural situation. leaving little purchasing power of one of the most important buying groups will remain crippled for another vear at les “Naturally the Furopean situation continues to have an adverse effect on world business volumes and on com- modity prices. Rut. in our opinton, the worst of the drag-domn influence has already been experienced and {hough definite signs of a pick-up in general business are still abeent. the tempo- rary relief in the Buropean credit situa- tion. together with thorough liquida- tion tn many lines of industry, affords A basis of hope that a period of ex- panding business may not be far ahead.” Brokers’ Comment NEW YORK, August 1. -Aside from ® possible technical rally. brokerage house advices see little immediate change in the character of the stock market. Comments include: _Paine, Webber ‘& Co.-—-The indica- tions of a line of cleavage hotween rimarv and secondary stocks persisted .ve-:grdn, Weakness in the former did nof Aguirre, or the sharp bulge in Safeway. The Interesting’ question is whether the two classes ean pull apart and continue in the opposite direction for long. We are a bit skeptical that thev can, but sre frank to admit that a few industries in bad times manage o run counter to the stream of adversity. Cassatt & Co.—Although sz yet only s poseibility there is much bullish promise in "the proposed arrangement for the sale of surplus American prod- nets. chiefly. wheat and cotton, to Ger- many and other financlally strained | Hum O&R 5%s 62. European countries. with provision for long-term payments therefor. Morrison & Townsend.- Veteran ob- ervers declare that the very dullness of the market iz to them the most con- vineing proof that it is scraping bottom. Hamershlag. Borg & Co.—Technically speaking, as measured by both charts and ent. there. is a fair possibil- ity that the June lows will be tested jand that the action of the market will be temporarily discouraging. We be- lieve that fundamental conditions, with the single exception of an intermediate European situation, will justify moderate purchases of good securities at any such low levels, should they develop. Shields & Co.--The action of Colo- rado Fuel & Tron in reducing it= wage seale should hasten the consummation of this phase. It is regarded as a FRockefeller company and therefore should exert influence on other steel men. The frank statement that the action is forced by competitive condi- tions will do_much to offset the harm that is causéd by such weak apologies as have beeh forthconiing recently when other companies admitted they have adopted such rourse. Pask & Walbridge—This lower tend- ency will doubtless persist until the majority of the second quarter reports are published, but progress on the down side should be slow and irregular from this point, probably working toward a fair rally in the Fall. Clark Williams & Co.—Until more definite indications of the immediate trend of business are seen, we do not look for any change in the character of stock market movement, believing that, for the time being, prices will continue to move irregularly but that, under cover of this irreguiarity, ac- cumulation of stock of those companies with Jarge cash equities and capable of g sstisfactoryi earnings en 8 moderate improvemert In business s 000 eradit | bt that the | prevent. the new high in_Central | INLIGHT TURNOVER | by its open mar- | | and are |« | | | | | i AUGUST "1, 1931. 'BOND PRICES FIRM | Coxzex vor BONDS 5o sacmavea] FINANCIAL! Received by Private Wire Direct 8o The Star Office UNITED STATES. e In §1,000.) Rales. High. Low. Closs. Lih 3% 8 32-47., 53 10220 102 15 10220 Listeis3z-47. 6 103 7108 5103 5 L4they,s33-38 48 10426 10424 104260 US3Kke'4s... 211011410112 10112 US3%s40-43., 110221 10221 10221 Low. Close. 98 /6 62 624 2% T4 178 105% 1314 108% Ab& StE4a"43. Allegheny bs Allegheny 58 Alleg Corp b% ‘6 Am F P 652020 AmIGChb%s Argentine 63 Oc '9. 18 Argentine 63 A'57. 42 Argentine 65 B '58.. 9 Arm & Co 434r"39.. 40 Arm Del 51384 3 Atchison gen 45°35 12 Atchiscv 448’41, 10 At & Danv 4. AtCL iat4s'E2. AtC Leol 4852 AtCL 4%n'64 At Ref deb 5 Australia b Australia Austria 7543 Austria 7857 ctf: B&O4s"4x R & O 58D 2000 H&OPrawyv B&OSwdy ba'b0.. Bk of Chile § %8 ‘6T Batav Pet 4145 '42.. Relgium 6s *55. Belgium 6% 549, Belgium 7a ‘55, Relgium 7. R Ind Loan Co §: Rerlin Cy Kl 6s 55 Berlin CyEl 6" 100t 1068, 1091 10515 109% 106% Bolfvia 7n '8 Bolivia 85 4. Rordeanx 6x Roxt & Ma 4% 561, BEiyn Elay 6 Bkiyn Man Buenos A 6561 Pv, 2 BR&PItt 454857, 1001 100 102 1051, 1051, 1024 10014 100 102 Bl Jan Nat ba July ‘69 Can Nat a Oct ‘69, Can Ner 41g8°35. .., Can Nor 7a deb ‘40, Can Pac deb 4s. Can Pac 4igs 46, Can Pac 4158 Can Pac 5n 54 Cent 111 GRE 5 Cent Pae 2 Cent Pac ba ‘0. Cert-td dab by 48 | Ches Corp 6s* CaO4eB" CRA&Q4Ls" C B&Q 1strf CB&Q (11 4% 4842 Chi Grt West 4859 Chi MESIP 418 B. Ch M&ESIP 43,883, Chi M & St P adi ba Chi&Nvwn 4198 20 Chi& NW con 458, 1 Chi RI& Prr 24 ChiR I ev 4ls 80 Chi R1&Fac 44853 C TH&SE in ‘hi Un St bs 1001 1028, 1091, 1004 1001 bty 923, 97 20t =0 68 105% 211, Ve B3 K0 Chile 6s 61 36 improvement | Chiie §s ‘63 Chi ‘ Chile Cop db As ‘47, Chin Gvt Ry bs 51, CC&STL A%E E C&StL5s D83 Colombia 6361 Oct Col GRE 58 May 57 Coi G&E coup 58 '§1 Com Inves 5igs 44. CGasNY 4355 95m) Con G N ¥ blas 45 Con Pow Japan 7a.. ‘openhag b 62... a bles 46 Czecho 98 Del Pur&l 4 3 De) & Hua f on 43 Del & Hud 5355 37, Uenmark 4 s 62.. Hle Denmaik 55.. 100t 55l 104 107y al 105 2% 1013, Dat Fdison rf 58 43 Deunteche Bk 68 Duguesne 4343 6 Dodze Rr el 65 40, Dutch East I Nov Frie Gen ¢a | Erie o Finland b4 ‘58 Finland 6145 6. Gelsenk'chen 63 ‘34 n Motors 63 37.. Gen Th kg 68 °40... German 5148 &5 German Bk 65 ‘38 Ger Cen Bk 65 '60 J Ger Cen Bk 65 '60 O German 7s rep 49, . Goody'r Rub b *67. GrandTr sf dh 68'36 Grand Trunk 75 40 Grt Nor 41y Grt Nor 4la8 Grt Nor gen 783 Greek 6363 Halt1 65 52, Hock Val 4% . Hud & M ad) 6857, Hud & M rf 58 67.. Humble O11 5 103% TR 2014 1021, 102 10615 79 R0 10315 11 BT 15t pros A.. i1l Cent ref 4s '55 1 CCS1L&N bs A.. 111 Steel 4348 "4 Imland Stl 433 A'78 Inland St 4sls E'81 Int Rap Tr bs 66... Int Rap Tr sta 66.. Int Rap Tr 6s 32 Int & Gr Nor 68 52, int& G Nad 6. Int Hydro E1 6344, 2 Int M Co haret ‘41, int Maich 68 47. s » It TET 4% 1at T&T ¢ IntT&T Ttaly 78 °61. ftaly Pub Sv 78°52. 14 s P a7 106% 1044 KanG & E ¢% Karstadt 68 43.... Kresge Found 6s 38 Kreug & Toll 68 69 Lackaw St 65 50 Laclede 5% C'53.. Laclede 548 D '60 Lautaro Nit 68 ‘6 Leh Valcv TehV ey el Lig & Myers b8 Loew's 65 ex war... Long 151 rf ¢8°49... Lorillard 6%8°37.. 2 Lou G & El b8 '53.. L & N unt 4340 L &N 4%4n 2003, oy R SRo e RN Ml ERy & L 5s ‘01, M BLPESSM 6348, 17 i bitter end by againtt 8! . sponding Mobile-Ohlo 55 ‘38.. Mont Pow 3. .. Mor & Co 1at 4% Nat Dairy 5% s’4s.. 101% N Eng T 1st 5’53 111% 82% 101% 96 AR RANT Rmama—m— 0N N Y Cent ab 45 ‘34, N Y Cont ¢%;8 201, NY Con rf 4%52013 0. M RO R BT NN MBS N Do P DD DT s AN NN R NN NN S P A MO NN NN T e WO RN NNNNE N AD . BN NY 8&W gn b5 ‘43 N Y Tel4l4n39.. N Y Tel 68 '41.... Nord 6148 50, No Am Co bx Nor Am Ed b N A Rd'zon Nor Am Ed § NorOT&L Nor Pac 2» 2047 Nor Pacr1i Norway s Norway b% Norway §s Norw Norway Orlent dev 53 PacG & K1 6 Paris-Ly M Paris-Or 51 Pathe Exch 7s 37 Penn 4348 Sta Penna 4% s D Penn cv 4% ‘60 Penn 4% s 63. Penn b ‘64 Penna gen n 6% Penn P&t 4 Penn O&D 4% Peoples' Gas 5 Py e Peru 63 '60 Phila €0 5867, .. .. Phillip Pet 515839, P CCASIL 4%8 17, PCCASBtLAsA.. PCC&StLbsB. Poiand 6s 40, Poland 7s *47 A Re 'R0 Port Gen EM4 Pos Tel & C ha Prague 7% 10814 #2 a5ty 73t AR 64 104 2%, 105 1008 1008, Pub Sv G 4%s Read gn 4% A 97, Reading 448 R.... Read Jer Can 4s 61 Rem R5%mA 4 Rhine West &3 Rhine Wast &8 55, Riode Jan 6% 852, Rio 4 4 RGrD Rio Gr W elt Rome 614a 52 Roy D 4846 ww SIL IM R&G 4832 SILESFindsA.. StLASF4%aT8. StL SV iat dn Smo PauTe Sa0 Panlo Sazon Pu Rerba-Cr. Serha-Cr-S) 5 Snell Un Of1 hn 47, Shell T'n Of1 5843, Shinsatan 64 Skelly O11 b3y Sinclair Ofl § %3 Sine O Tmev A 31, Sine Cr O 5we 18 Sine P L 6843 Solvar Am fs 4 Sou Bel TAT ba Bell Thu A ‘b4 1073 S mun—tanEnenm 30 RaRD BN 0 S a0 89N R 1 n1 32D T Sou Ry gen 48 Sou Ry hm '94 Sou Ry 6% StOIINJ bs” StOIINT 4 Sweden b s Tatwan P 5% Tenn FI P 65 A Tex Corp ev Third Av adj 6n Toho El Pow 8832, Tohn FI Pow T 85, Tokio 5s ‘52 Toklo El Lt 68’ 33 Un Pac 46! ac dln 67 nit Drug ev Utd King hlss 37 Un 811 W 6m A" Urnguay 6a°60, Urugvay 8s Utah P & L oa "¢ Uth Pow 5 ‘59 w Utll Pow bl s "47. Vanadium Stl 53 41 Vienna 6n ‘bt Gs Va Ry & Pow b8 '34 Va Ry istbs's: Wabash 4348 73 Wabash 1t 6n 39 Wabash Wahash 518 1h Walworth 65 A ‘45, Warn Br Pic 6339, Warsaw 7858 West Eldeb 5n 44 West (in Tel ba ‘31, West Union 5= "60 Wast Un T 6l6n'36. Wilks B & K Ist 5a. Wil-Ov 15t 6198 "33, Wil & Co 181 6 Wis Cen gn 4a 3 Yokohama Trsin SP&T b . Yng StI&T 58 B '10. AUTO TAX USE TO AID Sl G 1048 a1 1028, 29 7 495 43 497 107t 1045, 104 1105 s 100 LT B0 100 981 98 1028 3 102% 29 74 a9 43 9% 107 1043 104 1100 a5t 100 241, 500 100 o8 i 2 = MOTORISTS IS URGED | By the Associated Press Motor vehicle taxes should be used for the benefit of motor vehicle drivers, and any diversion of snch taxes to ot nzes than roads “will be fought to th the 26.000.000 motor ve- hicle owners.” says the American Road Builders’ Association. There are numerous examples of the diversion. of gasoline tax funds to .con- servation commissions and purposes other than road that. so far, do not amount fo very much in moner. the aseocintion savs. But the principle of the tax. it declares, is that of a special tax tn lien of toll for the use of the roads. The reason the tax has been so popular in the past is sscribed by the ' | eszociation to the fact that the money | | has been spent for the benefit of those who pay the taz. “Motorists are Interested in “ roads and some are already seeking to have motor vehicle taxes reduced when the prooeeds are not put back into roads. Scme Legiclatures are killing the ‘goose that laid the golden egg’ that has done g0 much to stabilize road bullding,” the association asserts. ENDICOTT JOHNSON CO. SHOWS HIGHER PROFITS Bpecial Dispatch to The Star. NEW YORK, August 1.—Endicott Johnson Corporation and subsidiary companies for the six months ended July 3. 1931, net profits, after all chltgel. including ral taxes, of $1.333.752. This is aTmnlenc, after de- ducting preferred dividends paid, to $2.51 per share on the 405,360 shares of common stock m:mnwem;g for the W amounted to $1,273,236, -or $2.12 per share of common stock. < A he six months ented July 3, 193 mounted to $24,739.997, 83,576 for the period.of eorre- PENNSY EARNS 83 - A SHARE FOR YEAR Estimate for Period Ended June 30—Heavy Cash Surplus on Hand. Bpecis! Dispateh to The Btar, NEW YORK. Augist 1—The Penn- sylvania Rallroad earnings are officially estimated at gslightly more thea 83 & ::.r- 7‘nr é:u year ended June 30. For @ calendar year 1930, the Penneyl- vania earned $538 s share on the 13.038.711 ahares outstanding at the end of Iast. year. The Pennsylvania had net operal income of $32.630.347 in the first haif of the year, ax compared with $46,634,599 in the corresponding perind of 1930. a decrease of $23.995.252 Since the Pennsvivania Raflroad does not. eurrently report monthly carning figures down to surplus after charges, the only measure available to arrive at net income is through the guarterly re- porta made to the Publie Service Com. mission at Albany. The report, savs the Wall Street, Journal, for the first three months revesled that the net charges other than from railroad op- eration had increased than £2.000,000 over the eorresponding gua: ter of 1030 Assuming 2 stmilar crease in charges for the second que: ter of this vear. the company’s earnings for the 12 months ended June 30 were about $28.000.000 less than for the cal- endar year 1930 The decline quive- lent to £2.13 a share on the 13.120,501 shares of Pennaylvania stock outstand- ing a8 of March last. the moet rec figure available Subtracting the de- crease of $213 a share from common earnings of $5.28 for 1930. would make rnings for the vear, ended with June, amount tn $3.15 a zhare. Lighter Dividend Receipts. One reason for the decreaze in 4 Pennsvivania’s other income is that road is taking dividendz of only from the long Tsland Raflroad vear against, 12 per cent last vear The Pennavivania has more cas any other ralroad - in the the clase of the first guarter, th had eurrent assets of 8114 759,361, against $133.446.921 on March 31 1339 Current liabilities on March 31 last were $50.6R0.836, aza 66,234,947 on the same date last v The rompany made subetantial re- ductione in operating expe for the first, half of 1931 a: rompared with 1930 fignres This apphe 1 ta tranportation coct £18.017.157 for the period nerdental int feciy— 2 ¢ faciity— 40238 2t $234,130.081 $90,582,299 20,798,135 6281437 24,722,399 25,830,000 | 1,487,929 20,52 5251878 932,013 It seems unlikely that the Penn. | vania will be sble to N its cur di nd rate of #3 annually during Toadings for July ran con: erably under a vear previous week ended Julv 25 the | handled 116.145 cars of = t against 141910 cars in the like week of 1930 a decrease of 18.1 per cent. Tn the immediate preceding seve: e the Pennsvivania handled 110,348 cars of freight. against 143749 in 1230, decrease of 17 per rent INVESTMENT TRUSTS REACH AGREEMENT | Speciat Dispateh to The & 4 | ers of Investment Trust Associates et a meeting held in Jerser Citv author- ized the trustees to accept the offer of United Founders Corporation to ac- quire its property and assets. After the | shareholders’ meetinz the trustees of | Invectment. Trust Associates met and formally accepted the offer of United Founders Corporation. Under the terms of the nffer share. holders were given the option of v ceiving $12.64 per share. which was the liquidating value at the close of bu: ness June 30. 1931. as computed by Messrs. Loomis, Suffern & Fernald, ov having this money applied to the pur- chaze of common stock of United Founders Corporation at 8721 per zhare, the consolidated asset value per share of common &tock of United Founders Corporation as of the cloce of business June 30, 1931 Tn view of the fact that the eur- rent, market price of United Founders common s less than the June 30 »saet the trustees of Tnvestment Trust Associates have made arrangements to permit those shareholders who had al- ready deposited their shares under the second option tn change their instruc- tions to the depositary dgent, the Guar- anty Trust Co. of New York, in or to accept the e2sh. Such sharehol will have until August 5 to change the instructions BANKS LIST IMMENSE 'SUMS AS RESERVES The June 30 financial statements of banks and trust companies reflect not only a very strong liguid and cash position but a prudent policy of set. ing up ample reserves for possible de- oreciation and contingencies. A num- York City tutions es- tablished special reserve funds during the latter half of 1930, includnig the National City Bank of New York, which transferred $£30.000,000 from surplus account to reserve- The latest state- ment of the Chase National Bank shows that $35.000,000 has been transferred from surplus to reserve Trust Co. announces a | £10,000,000 from surplus, approximately | one-half of which is used to reduce book value of the company’s new build. |ing and the remainder added to gen- ! eral reserves. Similar transfers have | been recently made by the Central { Hanover, the Bank of Manhattan | Trust, Brooklyn Trust Co. and other | banks. i It is noteworthy that deepite low re- | turn on loans and the large 1on |of funds placed in low vield Govern- ment securities, bankers' and strong h posi have been datvi among the large banks and trust com- panies, even where earn| for the first half of the veer have fallen ghorg