Evening Star Newspaper, September 11, 1931, Page 13

PINANCIAL. At AUTO PRODUCTION GEARED T0 DEMANG FRIDAY, SEPTEMBER 11, 1931. Ry REORGANIZED RAIL COMPANIES HIT HARDEST BY DEPRESSION BY CHARLES F. SPEARE. the improved capital structure that Special Dispatch to The Btar. was created during the receivership. NEW YORK, September 11.—The *f]m the public was not inclined to THE EVENING STAR, WASHINGTON, D. C, STOCKS IN RALLY AS MARKET CLOSES FINANCIAL/ RETAIL SALE GAIN NEW YORK STIOCK EXCHANGE Stock and Dividend Rate. ~1931— Sales— Add 00. High. Low. Close. Chge. 1n 100-share lots excopt these desigmated by lettefes.” Bt Stock and Bales— Net. Low. Chge. to & great deal of new stock REPORTED FORLD. . odrers First Eight Months of 1931 One Per Cent Higher Than 1930 Period. BY EDWARD C. STONE. According to a report made by the Federal Reserve Bank of Richmond thi: noon, retail trade in Washington de. partment stores in August was 6.8 per cont under the sales record in August, 1930, but retail sales in the Capital for the first eight months of the present year are 1 per cent ahead of the same period a year ago. The aggregate amount of retail sales in 57 department stores in 22 citles of the fifth Federal Reserve district in August, 1931, was 8 per cent less in dollars than total sales in August, 1930, only 12 stores increasing while 45 de- creased in sales during the 1931 month. In the United States as a whole, 536 stores reported an average decline of 12 per cent in sales in comparison with August, 1930. Cumulative sales in the first eight months of 1931 decreased 4 per cent in the fifth district and 9 per cent in the Nation in comparison with sales in :he corresponding eight months of last year. The fifth district record for Au- gust, 1931, tied with the record of the St. Louis district for the best showing, and for the eight months cf 1931 fifth district sales declined less than sales in any other district. Percentage Sales Comparisons. Individual percentages of changes in sales in fifth district cities present com- parisons with August of last year and the first eight months of 1930 as fol- lows: Janu Aus: Cities 1 Baltimore. Md PR JOP Sosmna~sumas atores as above) w"lm‘\ irginis The fact that Washington made such & good showing in the first eight months of 1931 when compared with other cities in the fifth district will cause no great surprise when the rec- ords of the other months so far this year are recalled. Sales by Reserve District. Details showing that the fifth Fed- eral Reserve district department store sales have declined the least of any of the 12 districts are presented in the monthly report made today by the Federal Reserve Board at is head of. fice here. As noted above the Rich- mond and St. Louis areas head the list. Chicago is third. Preliminary figures on the value of department store sales show an increase from July to August of somewhat less than the estimnted seasonal amount. The Federal Reserve Board's index, which makes allowance both for num. ber of business days and for usual sea- sonal changes. was 90 in August, on the basis of the 1923-1925 average &s 100, compared with 91 in July and 95 in June. In comparison with a year ago the value of sales for August, according to the preliminary figures, was 12 per cent smaller. The aggregate for the first eight months of the year was 9 per cent smaller. Percentage decreases from & year ago follow oo ohes Jan.1 _No_of reporting o *Aug. *Aug. 31 stores. b 3 =0 536 Ben, 1 — 9 *August figures preliminary: in most dis- tricts the month Lad the same number of business days this year and last year Exchange Honors Foraker. The Washington Stock Exchange has adopted resolutions on the death of Arthur Foraker. a fellcw member. One of the resolutions says: “During the years which it has been our privilege to b- associated with Mr. Foraker as a member of this exchange, we have al- ways found him a kind. courteous and considerate gentleman who was loved and respected by all who kgew him.” The ccmmittee drawing Me resolu- tions consisted of James M. John:ton, W. W. Mackall. John W. Brawner and Y. E. Booker. The exchange was rep- resented at the funeral today by a spe- cial committce, while yesterday's ses- sion was adjourned out of respect to his memory. ‘Woodridge-Langdon Bank Officers. The following directors were re-elect- ed at the annual meeting of the Wood- ridge-Langdon Savings & Commercial Bank yesterday: H. P. Baldwin, J. P. Benfer. R. John Boechs, M. O. Bull, R. S. Campbell, C. U. Edwards, Ora E. Haines, J. H. Harwood. A. S. Anderson, J. B. Higdon, J. L. Knopp, T. S. Mallon, E. L Norris, W. 8. Plager, W. B. Put- nam, John B. Bubino, 8. 8. Symons and Kenneth Vieth. A. S. Henderson is president of the bank, which is lo- cated at 2027 Rhode Island avenue northeast. Noted in Financial District. Poole, president of the Federal- an National Bank & Trust Co., returned from his vacation which passed at Eaglesmere, Pa. S. W. Miller, assistant treasurer of the Union Trust Co., is passing his va- cation_at Ocean Grove, N. J. M. F. Showalter, assistant cashier of the Comniercial Nationa! Bank, re- turned recently from several weeks' tour of Europe. during which time he visited England, France, Switzerland, Holland and Belgium afeway Stores, Inc, with which the Sanitary Grocey Co. is affliated, re- vorts August sales of $17,543.776, a d:- crease of 5.9 per cent from Augusi. 1930. Sales for the first eight months of this vear are off 5.5 per cent frcm a year ago. Today's Trading on Exchange. On the Washington Stock Exchange today the opening sale was a $1,000 transfer of Washington Gas 6s, series A, 103%4. A 500 sale of Washington Gas 5s was vecorded at 1067 and & $500 sale of Washington Rallway & Electric 4s at 933,. Trading in stocks was confined to Potomac Electric Power 6 per cent preferred at 113 and the 5': per cent preferred at 11055, The unlisted securities were called off and few changes noted. The bid Joh on Washington Base Ball stock was, advanced to 62 and the asked price on District Title Insurance Co. stock advanced a point to 33. ‘Washington clearing house figures for today, $3,868,016.44. SOVIET CROP REPORT. MOSCOW, U. S. S, R., September 11 (Special) —The crop report for the entire Soviet Union, ending September 5. shows that 184,060,000 acres of cereals were sown, of which 173,186,000 acres were threshed and 62,887,000 stacked, leaving the grain in 28,666, 000 acres lying in the flelds. . Efforts are being concentrated to save the latter, which is already be- ing ruined by rain and the early cold ‘weather in many sections. (Copyright, 19314 Add 00. High. Low. Cl 16 1 4 AdvRumley... 70% Air Reduction(t433), 3 Air Way Elec Appl.. 7 Alaska Juneau (40c) 5 Albany Wrap Paper. 3% Allegany Corp... 11 Alleg Cp pf §30 ww 10% Alleg Cppf w $40 w.. 28 Allegheny Stl (1.20), 32 Alliance Realty (3) 101% Allied Ch&Dye (n6). 18% Allis Chalmers (2).. 8 Alpha Port Cemt (1) 1513 Amerada Corp (2). 11% Am Agri Chem (D 2715 Am Bank Note (13) 118% Am Brake Sh pf (7). 203 1084 120 380 2054 t 90 149% 87 Am Can Co (16)....0 133 Am Car & Fdry (1).. 50 Am Car & Fdy pf (7) 13 Am Chain.. 381 Am Chicle (13) 8% Am Colortype. . 5% Am Comcl Alcohol. .. 164 Am European Secur. 20% Am & For Power. 683, Am & For Pwr pf(7). 38% Am & For Pwr 2d pf. 6% Am Haw St'ship (1). 10'3 Am Hide & Leath pf. 45% Am Home Prod .20., 16% Am Ice Co (3) 58 Am Ice pf (§) 914 Am Internatio 13% Am Locomo: (1).x 66% Am Lo'motive pt (1) x 25% Am Mch & Fdy 1.40.. 813 Am Metal Co. 45' Am News (13%3). 29% Am Pwr & Lt (31). 79 AmPwr &Lt of (6).. Am P&Lt pf A st(5). z 24% Am Smelt Ref (2). 102% Am Snuft pf (6). . 15 Am Solv & Chemical 11'4 Am Steel Found (1).. 981 Am Steel Fdry pf(7). 37 Am Stores (1233) 15613 Am Tel & Teleg (9) .. 981y Am Tobacco (16) 102! Am Tobacco B (16) 1241, Am Tobacco pf (6). 55 Am Type Fdy (8) 82 Am TypeFy pf (7) 385 Am Water Wks (3) 38 Am Wat Wkscfs(3 Am Wat W 1st pf(8)x 5% Am Woolen Co. 208 Am Woolen Co p! 3% Am Writ Paper cti 3% Am Zinc & L wee 18t Anaconda Cop (1%). 20 Anaconda W&C (1). 113 Armour of 111 (A) 1 Armour of Iil (B) 10ts Armour of Ill pf. 5% Associated Apparel 1613 Asso Dry G (234) 125 Atch To&S Fe (10). 10013 Atch To&S Fe pf (3). 78 Atl Coast Line (7). 22 Atl GuIf&W I pf (5 11'a Atlantic Refining (1) 101!3 Auburn Auto (f4).. 3 Aviation Corp (Del 9t Baldwin Locomotiv 35 Balto & Ohio (5).... 55 Balto & Ohio pt (4) 30 Barker Bros pf (63 5% Barnsdall Corp'n. 5313 Beatrice Cream (4).. 4415 Beech-Nut Pkg (3)..x dix Aviation (1). . t&CO (2)uuen. .0 841, Bethlehem Steel (2). 964 Bethlehem St pf (7) 15% Blaw-Knox (1). 85 Bloomingdale pf (7). 20t Bohn Alumn (113).. 47 Borden Co (k3)..... 14% Borg Warner (1). 814 Briggs Mfg (11%).. 115 Brockway Mot Trk. . 49t Bklyn-Man Tran (4). s Bklyn-Man Tt pf (6) 713 Bklyn & Queens..... 99 Bklyn Union Gas (5 324 Brown Shoe (3) #'a Brunsw-Balks 3 Bruns Term & Rwy 613 Bucyrus-Erie. 10 Bucyrus-Eriecv pf. 2'; Budd (E G) Mfg. T'e Budd Wheel (1) 7% Bullard Co. .. 4 19% Burrough A M(+1%3) 17 Bush Terminal(2’3). 70 Bush Term deb (7). . 95'% Bush Terminal pf(7) 9 Butterick Co. . 23% Byers (A M) Co. 205 Calif Packing (2)... 231, Calumet & Arizona. . 5 Calumet & Hecla.... 2414 Canada Dry G A (3) 1612 Canadian Pacific 1% 178 Cannon Mills (1.60). 915 Capital Admin (A).. 85 Car Clin & Ohio (4).. 451 Case (J1) Co....... 17 Caterpillar Trac(3). 87 Celanese Corp...... 354 Celotex vtccifs. 14 Celotex pf.... . 17% Cent Aguirre (113).. 21; Century Rib Mills. .. 12% Cerro de Pasco (1).. Checker Cab Mrfg. .. Ches & Ohio (3% 2 Chesapeake Corp(3). 4 ChiGreat a 4%, Chi Mil StP & Pac pf. 18% Chi & Northwest (4). 4 20 Chicago R I&Pacific, 50 Chi RI& Pacpf (1), 17 Chi Yellow Cab (3).. 1414 Childs Company. . 16%a Chile Coprer (112).. 1215 Chrysler Corp (1) 29 City Ice&Fuel (3.60) 7% City Ice&Fuel pf 613 10015 City Invest (10) 2 City Stores..... 1215 Clark Equipment(1) 22 Cluett-Peabody (3).. 133 Coca-Cola (+7%)....x 394, Colgate-Pal-P (23). 9 Collins & Alkman.... 71 Collins & Aik pf (7). 20% Col Gas&Elec (2)... 6 Columb Graph (66c). 51 Columb Carbon (5).. 13 Comm Credit (1.60).. 30% Comcl Credit A (. 20 Comecl Cred pf (1 7613 Comcl Cred 1st(6 20 Comcl Inv Trust 101% Comecl Iny Tr pt 6% 10% Comcl Solvents (1).. 673 Comwlith&Sou (40¢) 90 Comwlith&Sou pf ( 67 Congolm-Nairn (1).. 13% Congress Cigar (1).. 54 Consol Cgrpr pf 635, 10'3 Consol Film pf (2).. 8212 Consol GasN Y (4).. N 7 1015 Consol Gas NY pf(5) 152's 1 167% 102 19% 23 13'5 211 T8% Ry 107 124% 13% 111; Consol Laundries(1) 1, Consol Textile Contl Baking (A). 1%4 Contl Baking (B 447 Contl Baking pf 40% Contl Can (2%). i 55% Corn Products (4).. 1467 Corn Prod pf (7).... 6's Coty Inc... . 25's Cream of Wheat 1214 1814 Crown Cork (2.40). . 80 Crucible Steel pf (7) Cuba Cane Products. 2!y Cuban-Am Sugar. 16 Cuban-Am Sugar p! a Cuban Domn Sugar. . 33% Cudahy Packing (4). 66 Curtis Publish (4). . 1084 C 215 Ci 8 Davison Chemical..., 16 Deere & Co pf (1.40). 103%; Delaware & Hud (9). Del Lack & Wn (4).. 11 Devoe & Ray A (60c). 14% Diamond Match (1).. 8% Dome Mines (1)..... 16Y% Doug Afrcraft(1%) 1188, Du Pont de N .6 [Eastern Roll Milis... 493 . L e " 1308 3 334 7% 1 122% 122% 9% Eaton Axle (1.60) 8% Eitington-Schild. 351 Eitington-Schild pi 341a Elec Auto Lite (4) 2 Flectric Boat il 304 Klec Pwr & Lt (1) 80 Elec Pwr & Lt pf(8 lec Pwr & Lt pf (7) e Bat (4). 30 KEndicott-Tohnson(3) 27 FEquitOffce Bldg 2% 1313 Erie RR. 2015 Erie RR 18t pf (4). 60% Erie & Pitts (313)... 4%, Fureka Vac Cleaner.. 31a Evans Auto Prod. ... 4% Fairbanks Co pf ctfs. 109%s 60 Fairbanks M pf (7) 48 Fed Min & Smpf (1), 80 114 Fed Wat Sve A(1.20) 6% 363 Fid Ph Fire In(2.60). 2115 13 Firestone T& R (1).. 6613 56 Firestone T&R pf(6) 41 First Natl 8trs (2%) 12% 12 2 + 21% 31 o 201, Fourth Nat Inv m56e 115 Fox Film (A) (23§).. 22 Freeport-Tex (3) Asphalt ( Baking (2) 2713 Gen Cable pf. 31 Gen Cigar (4 35% Gen Electric ( 1112 Gen Elec spec (60c).. Gen Food Corp (3).. Gen Gas&Fl A (e30c) Gen Mills (3). “ Gen Motors (3, 4 Gen Outdoor Adv. 8'x Gen Public Bervie: 1% Gen Realtv & Util 26t Gen R & Ut pf (e6). 29 Gen Refractories (3) “s Gen Theatre EQuip. . 15% Gillette Saf Razor... 65 Gillette Saf Rpf (5). 7% Glidden Co..vvuu..n 48 Glidden Coprpf (7). 4 Gobel (Adolf).. 21 Gold Dust (213) Rl Goodrich (BF). 331 Goodrich (BF) pf 309 Goodyear T & R (3). 71 Goodyear 1st pf (7).. 4's Gotham Silk Hoslery 2'4 Graham-Paige. . 10 Granby Con Mi 1. 124 Grand Sfl Stra (h1) 10% Grand ['nfon. .. 36 Grand Unfon pf (3) 26% Grant (WT) (1)....x 30 Great Northnpf(4). 16 Great Northn Ore(2) 80%; Greag Wn Sug pf (7) 2% Gri; y Grunow.... ' Guantanamo Sugar.. 2 Guantanamo Sug pf. 10'a Gulf States Steel. 4ts Hahn Dept Store: 50 12 Hall (WF) ( $3 Hannapf (7) . Hartman Corp (B).. Hayes Body Corp. . . Hercules Pow pf (7). 10s lershey Choc (5). .. 6 Holland Furn (12%) 1054 3 66 8 287 5% 4 10 3 Howe Sound (2) e 5 Houston Ofl. Houston Oil (new).. 4 Hudson & Man ( 30s 9 E 9 Hudson Man pf (5).. Hudson Motor (1) 5% Hupp Motors. .. Illinols Central (4) Indust Ravon (4). Ingersoll Rand (4). Inspiration Copper. . Insuranshares Del A Insur Shr(Md) (40¢). Interboro ap Trans Inc Agriculture. Int Bus Machine(n6) Int Carriers,Ltd 50c. Int Combustion. . ... Int Harvester (25). Int Harvester pf (7). Int Hydro E1 A ( Int Match pf (4) {nt Merchant Ma ck of Can(40c). ck Can pt (T).. Int Paper & Pwr pf. . Int Salt (3). Int Shoe (3). Int Silver pf. Int Tel & Tel (1) Iat Dept Stores (2).. Interst D S pf xw(7). Investors Equity.... Island Creek Coal(4) 36l Jowel Tea (4)...... 1 40% Johns-Manville (3)., 124 105 Johns-Manv pf (7). 108 18 12 K'mann DeptSira(1) 1 24% 101 Kayser (J)&Co (1). 7 26 913 Kellv-Spr T 8% pf. 10s 29% 713 Kelsey-Haves Wheel 4 15'3 8w Kelvinator Corp.... 16 143 Kennecott Copper(1) 101 11 Kinney (GR) Co.... 1 25 Kresge (SS) (1.60). 16 107 Kresge (SS) pf (7)., 208 Kress (SH) Co (j1).. 2 Kreuger & Toll 1.61). 184 Kroger Grocery (1). 38 56 LambertCo (8)..... 23 10 Lane Bryant (1)....x 2 9'4 Leh Port Cement. ... 4 Lehigh Valley Coal.. 26 Lehigh Valley R R. Lehman Corp (3)... Lehn & Fink (3) 11 Libbey Owens Glass. 60 Liggett & Myers(t5) s 8% - & 60' Ligg & Myers B (15) 100t 491, 19% Lima Locomot (m2). 2 2 20 Liquid Carbonic (3). 36'a Loew's Inc (3)...... 83 Loew's Incpf (6%4).. 28 LOftINC...eevecncee % Long Bell Lumb(A). 40% Loose-Wiles $2.90).. 11% Lorrillard (P) Co.... 25 LouGas&ElA (1%). 60 Louis&Nashville(s). 15% McAnd & Forbes (2), 3 McCall Corp (2%). . fcIntyre Pore M(1). 1 TcKeesport TP (4). 3 MclKesson & Rob(1). McKes&Rob pf(3%) ' McLellan Store MackTrucks (2) Macy (RH)& Co(n3). Magma Copper (1) Manhat Elev gtd ( ManhatElev mod gtd Manhattant Shirt(1) Marine Midld (1.20). Marlin-Rockwell (2) Marmon Motor Car. . Marshall Field (215) Mathieson Alkill (2) x May Dept Strs (2%). 4 Melville Shoe (2).... Met-Gold Pic pf 1.89 5 Miami Copper. Mid Continent 3 Midland Steel (3). % Midland Steel pf (8 Minn Moline Pow. Minne-Moline P pf. Minne & St Lou: Mo Kan & Texal Mo Kan & Tex pf (T) Missouri Pacific. ... Missouri Pac pf (5).. Mohawk Carpet. Montgomery Ward. . Motor Meter G & El Motor Products (). Motor Wheel (1) Muains Mfg. BTla 803 40% 20 Nash Motors (4) 10 81, Nat Bella Hess. 833, 49% Nat Biscuit (2.80 Biscuit pf (7 18% Nat Supply Co. . T4la 66 Nat Supply pf 23% Nat Surety (2) s ar L High. 185% 118 KEastman Kodak (t8) l;: 132% -1 s esirees "« [IEXNEER b L] - * | huse, made new lows and a little later “ ing. To a lesser degree the same was * | Assoctation, “ | Bankers 5 |in history, English (Continued on Page 14, “a|Support Appears as Many in X lssues_Show Sagging Tend- ency—Shorts Cover. BY GEORGE T. HUGHES. Special Dispatch to The Star. NEW YORK, September 11.—Just when it seemed that the June lows were to be violated, support appeared in to- day’s stock market, a covering move- ment developed and stocks closed mod- erately higher on the day. It could not be said that the buying was urgent, although there was a re- treat on the part of the short interest. However, the decline was checked and the market was turned by the buying in United States Steel and American Can, presumably for the account of banking interests. Before the recovery. scores of new lows had been registered in all parts of the list. Commodity markets were steady, with strength in crude rubber. Up until late in the day bonds were weak. but eventually they rallled with stocks. Sterling exchange was up 3-16. Strength of gold mining stocks was a feature of the day, with & new high for Home- stake Mining. As in recent sessions, tnere Was a brief period of covering at the opel ing, but when that was over the de- cline was resumed. It took in stocks of all groups, rails, industrials and utilities. New lows by scores were set up all through the list. In the rail- road section Reading was conspicuously weak, breaking through 48 and fore- shadowing a cut in the dividend at the meeting later in the month. Other hard-pressed railroad Ehll‘?l! included Baltimore & Ohio, Pennsyl-: vania and Southern Pacific. as doubts about their dividend rates continued to be expresses All three mentioned made new Jows, and besides these Dela- ware & Hudson and Lackawanna broke through their previous minimum prices. Leading industrials were freely of- fered. The electrical manufacturing stocks, General Electric and Westing- General Motors, dipping under 31, sold at the lowest for the bear market. The utilities were not spared. Consolidated Gas and American Telephone made new lows on the movement, while new lows for the year were reached by American & Foreign Power and Ameri- can Water Works, among others. Oils were weak, especially Texas Co. The high-priced issues broke easily, in- cluding International Business Ma- chine, Allied Chemical and Eastman ak. All through this weekness strong support was accorded to United States Steel and to American Can. Buying | in the former was said to be for ac- count of important interests. At any rate the stock held up amazingly well while the rest of the market was react- true of American Can. Business Notes NEW YORK, Beptember 11.—The preparation of data showing the wide | variety of items excluded entirely or overburdened by high tariff rates has been decided upon by the Natlonal Council of American Importers & Traders as the first stsp in a campaign for tariff adjustment. Chairmen and directors of the council at a meeting here indorsed the proposal for an sctive fight against the tariff, but de- cided that a definite groundwork of facts covering specific commoditics should be prepared before action is taken. The association's leaders voted to meet twice, instead of once, each | month until some definite action on the matter is taken by Congress. Leading silk producers report a | greater degree of price firmness in broad silks. Although some construc- tions are still being shaded. buyers were sald to be paying somewhat better prices for the desired gcods than have prevailed recently. Satins and canton creves are favored lines and velvets are strong among the specialities. The Sep- although some slowing up has been no- ticed because of the approaching Jew- ish holidays. Selling agents predict that the major portion of holiday stationsry purchases by retail stores will be completed before the end of this month. Thelr esti- mates are based on the unusual activ- ity in the market here since the end of last month and on the fact that most buyers plan to come into the market only once this season and have sched- uled their trips for the next threc weeks. Orders are normal in quantity but the buying has been concentrated on low-end novelty items with both sta- ple and higher-price merchandise ne- glected. Will Retain Employes. NEW YORK, SeptemNer 11 (#).— Directors of the Rubber Manufacturers Inc., have unanimously adopted a resolution recommending that all rubber manufacturers maintain their present forces, even if a reduction in hours becomes necessary. This policy woud apply to all classes of employes. NEW YORK BANK STOCKS NEW YORK, September 11 (#).— Over-the-counter market: Banks. America . Chi e Chat Phenix Commerctal First Natl N Manhat Co Natl City Public ... | Chem Bk "Tr tember demand has been good thus far | C! | Gont Bk & Tr | Corn Exch Empire . Guarant rying .. Manufaciurers New York . Girls earn higher examination marks composition and | modern languages than boys, while boys * | excell -in mathematics and sciences, ac- Money on Hand to Loan on First Deed of Trust 6% Interest Reasonable Commission and Prompt to Applications JAMES F. SHEA 643 Indiana Ave. N.W. Libera) ‘Allewases on Y Old Ti 04 10th; STANW, ADAMS. grvige—Charge unusual decline this week in the junior bonds of the Wabash Railroad, which follows ® series of heavy losses in the similar obligations of other carriers, calls attention to the fact that the most conspicuous weakness in railroad se- curities at present is in that group of companies that went through receiver- ship about 15 years ago. At that time the railroad mileage in receivership was the largest since 1893. It was concentrated mainly among sys- tems in the Ohio Valley and in the Southwest. The fundamental difficulty then with most the roads that be- came bankrupt the high ratio of debt to capital stock. The proportions were in some cases as much as 75 per cent bonds to 25 per cent stock. In the reorganizations of these properties, the attempt was made to correct this condi- tion. In doing so junior bonds were exchanged for certain ratios of com- mon stocks and preferred stocks, while bonds of a higher rating were, in sev- eral situations and against the objec- tion of their holders, substituted for ad- Jjustment issues whose interest was Withheld for a term of years after re- celverships were lifted or until the property was on a good earning basls, Payment of such interest is not a fixed charge, but is contingent upon earnings, and frequently upon a proper allocation of such earnings to maintenance charges. Bond Issues Numerous. The weakness that has cropped out in different railroads reorganized dur- ing the war period arises from subse- quent issues of bonds on such a large scale that again the proportions be- tween fixed debt and capital stock are not satisfactory. As soon as it appeared wise to do so, the managements of the s when it was issued, believing that the ‘were not suffi- clently to justify its paying par for common stock. Neither did it show much enthusiasm for offers of preferred stock. Inevitably, therefore, there resulted the necessity of again resorting to bond issues in order to obtain means for such extensions or improvements as could not be made out of earnings. ‘This us to the cheap money period in 1927 and in 1928 when any sort of bond, domestic or foreign, could be sold with a 414 per cent coupon and at & small discount from par. It was at that time that the St. Louis-San Francisco brought out its 4'; per cent issue at 97, which has recently sold at 40; the Wabash its 4!2s at 95, which have dropped to 60. Heavy Depreciation. In 1929 the Chicago & Northwestern sold convertible 43 per cent bonds at 100 that are now at 60, and last year the New York, Chicago & St. Louls issued 4!is at 973, which are at 53 now. ' The last two named roads are not to be included with those that passed through the stresses of 15 years 8go, but the action of their junior | bonds has been somewhat simiiar to | that of the other three roads, and, like them, they have been compelled to | finance with fixed obligations because | of difficulty in obtaining a popular \n“::rket for '.heg shares. These five ues, representing an aggregate of | about - $300,000,000, have depreciated | approximately 50 per cent from their initial public offering prices. | The problem of raiiroad managers | and their bankers with respect to rais- | ing new capital is not confined, how- | ever, to the weaker roads. To complete the story, mention must be made of the reo! ized roads began to pay interest | fact that roads like the Pennsylvania, | on their adjustment bonds. A little later j they inaugurated dividends on their preferred stocks. This policy was un- doubtedly hastened by the pressure of the original holders of bonds who had lost their income in the exchange and had no way of regaining it until the junior securities were on a paying basis. The third phase was the beginning of | dividends on common stocks. It should have been possible during this period of earnings so large that common stocks of comparatively new corporations were now dividend payers, to have been able to sell stock to the public for capital uses and so preserve New York Central and Baltimore & | Ohio, in the late prosperous years, | raised large amounts of capital through sales of new stock, and assisted the | subscription to this stock by the pay- | ment of higher dividends. All of them | have this year been compelled to re- | duce their dividends, and the existence | of the increased stock capital is now | 2n embarrassment to each one of them. | On the other hand, the strength of | their position in contrast to that of the other group is that they have not only | kept their fixed debt from rising, but | through the conversion of bonds into | | stocks have made so; me reduction . (Copyright. 1¢31.) e REDUCTION IN BANK | DECREASE IN BROKER | = < moren: CLEARINGS IS SHOWN By the Associated Press. NEW YORK, September 11 —Bank LOANS IS REPORTED Special Dispatch to The Star. NEW YORK, September 11 —The clearings are even further reduced. The | weekly statement of the Federal Re- | total for the five-day week ending with Thursday last, at leading cities in the United States, Review, was only $4813,084,000 and showed & decline of 40.8 per cent, com- pared with the six-day week a year ago The reduction this week from the preceding week was 21.2 per cent, | 10, but on an average daily basis it was only 53 per cent, not greater than normally appears. New York City con- tributed heavily to the decline. The total at the metropolis for the past five days amounted to only $3,160.187,- 000, which was 41.7 per cent below a year ago. It has been many years since bank settlements even for five days at New York City were at as low a level as for the current week. Heavy declines are also shown at the outside centers, the total of $1,652,897,- 000 being 38.9 per cent under a year ago. clearings for the past two weeks, whicl equalizes the return, the reduction from last year was 28.5 per cent as reported to Dun’s| ended Septembe: Combining the total of ban:‘ serve on brokers’ loans showed a de- | crease of $41,000,000 during the week T 9 to a total of $1-! 325.000,000, the lowest since January 9. 1924. This compares with $1.366.- | 000,000 last week. with the previous 1931 low of $1.329,000.000 on August 12 Ill;go‘lllh $3,143,000,000 September Loans for own account were $949,- 000.000, compared with $983,000,000 a week ago. Loans for account of out- of-town banks totalled $215,000,000 against $220,000,000 on September 2 and loans for accounts of others amounted to_$161,000,000 against $163,000,000. The New York Federal Reserve di trict rediscount rate remains un changed at 11; per cent. WOULD DELAY RADIO QUOTATIONS ON STOCKS R. W. McNeel, director of McNeel's Average ' Financial Service, Boston, in a telegram | daily” clearings for September to date !0 President Hoover urges, as a step are very much below those of any month back to the Summer of 1923. Bank clearings for the week. as re- toward preventing further unwarranted demoralization in security markets, which breaks down business and finar ported to R. G. Dun & Co.. showing cial confidence, to have all radio broad- decreases compared with same period Casts of stock market quotations de- a year ago follow: (Totals in thousands) Five days September 10, 1931 Pe; Poston ...... $224.000 Dec Philadeiphia 292. Baitimore ...l 11 s20 263 T cent layed until after the close of the market. His contention is that under present conditions, when every half hour the .42.1 | story of falling quotations is dinned - 376 |into the ears of millions of investors in | their homes, it creates sudden fear and 333 | trepidation, Tesulting in hysterical sell- 459 |ing of securities. Mature consideration 7.1 Omal Alinneapolis Richmond Atlanta Seattle Total ... New York . Total all ... 54.613.084 Average Daily. September to dete Becond quarter First quarter LIFE INSURANCE FIRM Special Dispatch to The Star. BOSTON, September 11.—The New | England Mutual Life Insurance Co. for | the first eight months of the current year reports an increase of 4.2 per cent in actual new business, as compared | with the corresponding period of 1930, bringing its total business so far this | year to $89,622,669. Several new records were established by the company during the first half of the year. New business quoted was larger than in any similar period in the company’s history and the month | of June, when an increase of 34 per cent was shown over the corresponding month of last year, was the second 1 June th any ever ha Money to Loan by first deed of trust on real estate. e A Tine nterist and commi Joseph 1. Weller £ REAL ESTATE LOANS Made at Low Interest Rates TYLER & RUTHERFORD Avplications _ invited on high-class e e aded business. propertics. 185 on weil Tocated businiess propertics, 150K St 'NW. National 0475 . Re-Financing . Purchasing . Building .LOANS C. property . . . no 1s and ng commisiions sk for details of n Plan. . . . Open Daily 9 to 8 Saturdays Until Noon NAtional 1381 I | IIPERMANENT]| [BUILDING ASSOCIATION| 22 NNTHST AW i 3 33| would be almost compulsory if broad- | 3 3 24'6 | casts were delayed until after the close s Lous 00 352 of the market and would eliminate ansas City <328 | hysterical sacrifice of securities, often- 426 ‘ times at a fraction of their true values Executives Do Not Expect an Upturn in Trade Until October 1. BY DAVID J. WILKIE. Written for the Associated Press. ‘DETROIT, September 11.—The au- tomobile industry still- has its brakes on, s0 far as the production division is concerned at any rate, Early in th Summer, when “vacation” ted Fall pick-up would start in with the general resumption of activity expected in September. Present indications, however, are that September cannot show a much greater output than did August. While figures for last month are not available, re- tail sales of new cars are estimated by fact-finding agencies as between 150,000 and 166,000 units. With Ford and several other producers shut down, in part at least, during most of August, factory output undoubtedly was con- siderably below retail sales. The Co. recalled some 20,000 of its workerseon Tuesday of this week and stepped up production somewhat. The great majority Jf its present per- sonnel of something like 10,000, hot ever, are working on a three-day-i week schedule: Reduced working sched- ules also prevall in virtually every other plant. With nothing in imme- diate sight that would justify a pre- diction of a sharp increase in output this month, production executives gen- erally have revised their earlier views and put off the expected upturn until at least October 1. AUGUST BOND CALI:S LARGEST SINCE 1929 Bond issues called in whole or in part in August totaled $137,978,484, the largest amount reported for any month since November, 1929, according to the Standard Statistics Co. Public utility bonds accounted for $118,564,290 of this total and industrial bonds for $14,622.- 884. The detailed figures given below cover the first eight months of the last 1930, Industrial ........ 173.176.950 Real estate " . 13,021,647 Public utilities .. . 85,8904 Railroad ....... Foreign .. Totals . ENTERPRISE SERIAL BUILDING ASSOCIATION 7th and Indiana Ave. NW. LOANS ON IMPROVED DISTRICT OF COLUMBIA REAL ESTATE SECURITY 66th Series of Stock Now Open For Subscription James E. Connelly James F. Shea President Secretary LOANS —For Buying —For Building —For Refinancing completed properties. O delays are encountered in securing loans on first mort- gages at reasonable rates. Permit us to give you further information without™ obligation on your part. REALESTATE MORTGAGE & GUARANTY CORPORATION 1610 K St. N.W. National 1403 rative Bldg. Assn Organized 1879 JOHN JOY EDSON, President 5ist YEAR COMPLETED WALTER S. PRATT. Jr., Secretary Subscription for the 101st Issue of Stock Being Received Consult Us if You Want a 7s Business ca| B Loan on Real Estate or to REPORTS | Tike UP a chase a home. refinance will receive prompt and FERS'T template: ciently? There answers Ozer a Third of a Century Without a Less which the tire term o from $250 National 2100 THERE IS NO improve property should see us. Is it safe? is one affirmatively questions, our 6% FIRST MORTGAGES They are safely secured by im- proved Washington real estate, upon after caref pay 6% interest throughout the en- May be purchased in SUBSTITUTE First Mortgage Those who desire to borrow money to pur- present indebtedness or Applications courteous attention. Loans Repayable Monthly No Brokerage . . . No Commissions 915 F ST. N.W. MORTGCAGCES ASK YOURSELF THESE TWO QUESTIONS —of any investment you may con- Does it pay suffi- investment which both these loan has been made only ul appraisal. And they f the mortgage. amounts up. K B P SAUL CO. 925 15th St. N.W. FOR SAFETY