Evening Star Newspaper, October 2, 1931, Page 15

FINANCIAL. STOCKS STEADIER ON CURB EXCHANGE Pressure on Utilities Group: » Is Lifted—Preferred Is- - sues Improve. BY JOHN A CRONE. @pecial Dispatch to The Btar. NEW YORK, October 2.—Stocks on the Curb Exchange today showed s steadier tone following an irregularly higher opening. Fiectric Bond & Share was up a point around midday. Cities Service was a trifle lower on moderate offerings. The higher-priced public _utilities moved through the widest ranges, with Duke Power up 4 points after losing about 11037 ! { NEW YORK CURB MARKET ~Pre High. Lo 10 Stocks seld in 100-share lots except those desismated by letter “0." 1981~ Btock and Bales— Add 00. Open. High. Low. Close. | 4 6 Th 6% Dividend Rate. 4% Acetol Prod A....... Adams Mill 1at p€(7)3268 2 Aero Supply B. 1 11% Affiliated Prod 1.6 % Alr Investors vte 6 AirInvestorscy ~9714 Ala Pow pf (8). % Allegheny Gas 3% Allied Mills Inc 73% Aluminum Co of 91 AluCoof Ampf (6)., 25 Aluminum Co Ltd. 213 Alum Ltd B war..... 14 Alum Ltd D war. 4 Am Austin Car.. 14 Am British & Cont. .. 20 Am City P&L (A) a3 214 Am Cit P&L E b10%. 41 Am Com P A (b10%) 1% Am Corpn (f30¢). * 3% 47 ZiN 11y 9 3% Aly 224 2 1 2 2 5 19 17 29 [N 51 Am Corp war. Am Cyanamid B. Am Equities. .. Am For Pow war, (4 12% 31 5% half that amount on its first sale and | 9714 Consolidated Gas of Baltimore at times moving 2 points between sales. The suspension of Adamson O'Brisn by the Curb Exchange in the first half hour was without market ef- fect, that firm having relatively small commitments among othe: members and comparatively few dealings with the general public. Preferred Stocks. One of the most heartening features of the forenoon session was the better tone exhibited by preferred stocks, espe- cially those of public utility companies, which in the same period Thursday were in a demoralized state as thei supposed market sponsors showed little inclination to support such shares, even on_limited offerings. Pressure on public utility holding eompanies and natural gas and higher- priced industrial shares lifted within the first hour, but the tone of the oils was distinctly heavy and the motors displayed mixed movements. Long Island Lighting B preferred was one of the weakest spots in the utility division as 100 shares appeared at 83, a decline of 211; points. Recov- erfes of 2 points or so in Jersey Cen. tral Power & Light preferred, Long Island Lighting preferred and others, | however, were more typical of the gen- eral trend. Eastern Utility Associates fell 51 points. but that, too, was an exception to the trend of such common shares. New lows were made by Na- tional Fuel Gas and Appalachian Gas before some semblance of support ap peared in that classifieation United Corporation warrants ros more than a point on estimates thai the common would earn around 82 cents a share. Commonwealth & Southern warrants firmed fractionally | following estimates that the common | Ni- | would net about 44 cents a share. agara Hudson Power bettered as pre- liminary figures indicated a possible Pprofit of 45 cents on the common for 1931. American Gas & Electric, which recently ran into considerable liqui- dation, recovered more than three points as the Street heard the common might earn $3.90 a share this year. Other Changes. Amusement shares ignored trade paper advices that box office receipts of moving picture theaters in 28 leading cities in the country for the week ended September 25 showed the biggest in- crease for any week since early last Spring. BONDS ON THE CURB MARKET. DOMESTIC BONDS. High s 48 99 w 65 40 38 3 Amer GAE 5s 2028.. 19 Amer P&L _6s Sales in 54 10 Gatineau Pow b3 8 Gatineau Pow 6s 2 Gatineau Pw 6s B 1Gen Mot A ol 2 Gen Wat Wk 5 Georgia Power 55 | 2 Gillette_ S Raz 55 65 '3 s B 44 58 P 8 Insull Utilit 6s B 1Inter Pw Sec 7s E 17 Intersta Power 5s ' 2223 3us33assesa3nde: 5Stand Gas & E 65 §Stand Gas & 2 Swift Co 58 z 3 %enn Pub Serv_ 55, i "City Gas 55,48 sEgeounsanrestas g3293 - 3Buen Air Prox 7s 52 10 Buen Air Pr 7'as o k 5l 137 Ban' Tel A 41T er Cons Mun 8s T Gestusra " 3 i o v 36 , 10 Stinnes 36 Xw... —With warrants Without warrants., sued. s Bir James Barrie is said to consume +1.280 pipe loads of tobacco during his writing of a novel. | | | i I | ment and aid farmers in grain. 111 T Am Invest Inc (B) Am Invest war. Am Laundry Mc Am Lt & Trac 12%). Am Mfg Co (2). Am Maracaibo. 6 Am Pub Sve pf (7). 108 Am St PuSv (a1.60). 1 Am Superpwr (péle) 192 Am Superp 1st (6)... 4 Am Util & Gn B vte.. 21 Am Yvette (25¢). 1 Anchor Post Fence ‘Anglo Chil Nitrate. Appalachian Ga Appalachian Gas wi Arcturus Rad Tube Arkansas Nat G Arkans Nat G Ark P& Lt (T). Armstrong Cork (1).5008 Art Metal Wks (60c) Assoc Elec Ind (30c) Aseo G&E] A(b2-25). Ass0G & Elct (8). Ass0 G & El war. At Coast Fish. Atl Lobos. ... Aulas Utll Corp Atlas Utilities wa AutoVM cv pr pt 0e. Beneficlal I L (13%4).. Bigelow-Sanford Blue Rldge Corp. Blue Ridge cv pf(ad) Brazil Trac Lt&P(1) Brill Corp A (34¢)... Brit AT rg 1.17 4-5 Buckeye P L (4)..... Buft N&EP pf (1.60). Buff N&E P 1st (5). Bulova cv pf (3%). Bunker Hill & Sull. Butler Bros Cable & Wire A rc Canadfan Marcont. Carman & Co A (2) Carnation Co (j1%4). Cent Hud G&E (80¢) Cent Pub Svc A b3 %. Cent Stat El (b10% ) Cities Service (£30¢) Cities Serv pf (6) Cit Sy P& L pf (8) CitSy P& L pf (7 Claude Neon Lts Ine, 4 Clev El Illum (1.60). Club Aluminum Uten Colon Oil. Col Oil& Gas vte. Colum Ple v.t.c. £75¢ Cmwlth Edison (8) Cmwith & Sou war.. Com Wat Ser g12%¢ Comstock Tunnel. .. Consol Auto Merch Consol Copper. ... Con Gas Balto (3.60) Consol Gas Utll (A). Cont Shares pf (B).. Cont Shares cv pf.... Cooper Bessemer Cord Corp..... Corp Sec Ch (b6%) Cosden Ofl. Creole Pet: Cresson Con Crocker Wheeler Crown Cork Int Cumberland P L (2).300; Curtiss Wright war. Cusi Mex Mining. Dayton Air & Eng... Deere & Co. ... 4 De Forest Radio..... Derby Oil Refining 2 Detrolit Afrcraft..... 16 Domin St & Coal B. Dress SRA (3%). Dresser Mfg B (2).. Dubilier Cond & Rad Duke Pow (5) Durant Motors. . Dugquesne Gas. Duval Tex Sul w gle Picher Lead. .. Fast G & F Assoc East Sta Pow (B) East Util Assoc (2) Fast Util Assoccv. . Edison Bros St(50c) . 225 Elec B & Sh pf (8). Elec Pow Assoc (1). Elec Pow Assoc A (1) Elec P & Lt op war.. El Shareholdg (b6 %) Elec Sharhldg pf(a6) Empire Corp. . . Emp Corp cv pf (a3 Emp G & F cu pf(7).150s Empire Pwr pt(2.24) 2 Employ Reinsu t1.80 1 Eureka Pipe L (4).. 1508 Europ E Ltd A (60¢) 1 Europ Elecdebrts... 18 Ex-cello Alr & Tool. . Fajardo Sugar. Falcon Lead..... Fansteel Products. .. Federal Baking Shop Ferro KEnamel (A)... Fiatrcts (94%c¢). Flintkote Co A. Fiorida P & L pf (7). 2 Ford M Can A (1.20). Ford Mot Ltd 36 3-5¢ Foremost Dairy pf. Foremost Fabrics Fox Theater (A).... 3 Garlock PKg (1.20). Gen Aviation. GenE Ltdres 36 3-ic 19 Gen G&E cv pf B(6).3508 Gen Theat Eqev pf.. 9 Glen Alden Coal (4). 6 Globe Underwr (15¢) 2 Goldman Sachs..... 57 GUAt&P Tnv (16%) 20s Gt At&Pac Tea pf(7) 108 Guif Oil of Pa (1%)« 17 Hudson Bay M&S.. 5. 1 Hygrade Food Prod Imp Ofl of Can (50¢). Imp O Canreg (50¢). Indlana Pipe Line(1) Insull Inv (b§%). .. Ins Co ofNo Am +2% Insurance Sec (40c). Intercontinent Pet n. int Petroleum (1). Int Products. .. Int Superowr(+1.10). Int Utilities(A)(3%) Int Utilities B. Interstate Equi Inter Equ cv pf (3) Irving Air Chute (1). italian Superpow A.. Itallan Superp war.. Jer Cent PAL pt (§).2008 Kolster-Br (Am 8h). 8 Lackawanna Sec (4). 16 17% Lake Shore Mines t2. 14 3 Lefcourt Realty 1.60. 1 19% Lefcourt Realpf (3). 1 13 Lep Coal & Nav1.20. 3 & Léonard Oil.... 1 2T% 1% Short Selling Denounced CHICAGO, October 2 (#).—The Cry Council unanimously adopted a reso- lution denouncing = short selling on stock exchanges and urging the Gover- nor's Revenue Commission to investi- gate and curb the practice. Another resolution petitioning Presi- dent Hoover to call a Special Con- gressional session to modify the Vol- stead Act received only two dissenting votes. Alderman James C. Moreland introduced , & modification would relieve unemploy- disposing - of Received by Private Wire | Direct te The Star Office ~Prev. 1981.— High. Low. 1413 Stock and Dividend Rate. Libby McNell & L Lion Oll & Refining . Lone Star Gas n 88c. Lonx Island Lt (60c) Long Isld Lt pf (7)., Long Iscu pf B(6).. 4 Magdalena Synd. . ... Mapes Cons Mfg(14) Marconi I M 73 2-5c. Mass Util Assoc Mayflower Asso (2). McCord Radiator B, , Mead Johnson (15).. Memph N Gas (60c).. Mesta Machine (2).. Metal & Mining Ine. . Metal Tex pt pf(3%) Mid Sta Pet vic A 22¢ Mid Sta Pet vic B... 26 Mid West Ut (b8%). Mid'|d Steel Prod(2) Mid Wst St Ut(b8 %) Mo-Kan Pipe Line. Mo- M Mohawk Hud 24 (7). Mont Lt H&P (1%). 150s Mountain Prod (1).. Nat American Co. Sales— Add 00. Open. High. 8 1 T4 28 B8 | % 'y s Nat Fuel Gas (1). NatInvestors. . Nat Pub Sv A (1.60 ) 3 Nat Pub Sv pf (7)...100s N 3 Nat St Corp war hi Corp (60c) Haven Clock. wmont Mining... ewport Industries. Y Shipbuilding Cp. 2 Y Tel pf (635).... 1508 ag-Hud Pow (40¢) 129 24 Nor StPow A (3). Ohto Copper. .. PacG&E1stpf1%. 5 Parker Rust Pr (3) A@3%) Corp (40c) Penn Mex Fuel(75¢) Penn Wat & Pow (3) Pepperell Mfg (4)... Perryman Electrie. . Phila Co new (+1.40). Philip Morris Ine.... Phoenix Secur Corp. - 5 Phoenix SCpf (3).. Plerce Governor. ... Pilot Rad Tube A. Pitney Bowen (b4 %) Pitts Plate Gl (2). Plymouth Ofl (25¢ Pratt & Lambert (3 Propper McCallum Celmaint Pure Oil pt (6) Pyrene Mfg Co (40c) Radio Products. Reliable Store: % Reliance Int A Reliance Manag. S Rhode Is P 8 pf (2).. Rich Rad cum pf. Roan Antelope Min. . Rock Lt & P (30¢) Rubberold (4).. Safety Car Heat & L. St Anthony Gold.... St Regis Paper (80). Salt Creek Prod (1).. Seaboard Util (28¢). Sec Allied Corp (1).. al L & H (a50c lected Industrie: Sle Ind al ctfa(5%).. Sict Ind prior(53%).. Shattuck Den Min. .. Shenandoah Corp.... Shenandoah Corp pf. Singer Mfg Co (116) .300: Sisto Finance Corp.. 1 Smith (A 0) (2) Solar Refining. . South Penn Oil (1). SoCal Edpf A (1% SoCal Edpf B (1% Sou Cal Ed pf C(1%) Southld Royalty 20c. S W Gas Utilities. .. feg May Stern pf.. Stand Oll'ef Ind(1).. Stand Ofl of Ky 1.60. 45 Stand OI1 Ohjo (23%) 7508 Stand Oil of O pf (5) 2408 Stand Pwr & Lt (2) 1 Stand P& L pf (1) Starrett Corp. Stein Cosmetic Stinnes (Hugo). Stroock & Co Sun Invest. . Sun Invest pf (3). Sunray Oil (b5%) Swift & Co (2).. Swift Internat’l (t4). Syracuse W Mach B. Taggart Corp. Tampa Electri Technicolor Inc. Teck HughesGM Texas P& L pf (7).. Texon Oil&Land (1). Tob Prod Exp (10¢). Todd Shipyard (4).. i Air Trans Trans Lux DL PS.. Tri-Cont Corp war. Tri-Utilities. . Tubize Chatel, B Ungerielder Fin Cp. Un of Canada(1) Unit Corp war. Unit Dry Dock Unit Founders. Unit Gas Corp. . Unit Gas Corp war.. Unit Gas pf (7)., . Unit Lt & Pw A (1). Urit L & Pwr pf(6).. Unit Profit Sh pt(1). U S Dairy (A) (6)... U 8 Dairy (B).. U S Elec Pow ww. U S Finishing pf.... 32 o E AT AR e AN e 51 4 13 66 16'3 121 o 108's 10815 54 21 Ny 305 30% (Toat 2% 2% 1 14 15 2% 26% 3 a8 . s 3y 26% 5% Utah Apex Utah P & Li Util P&Lt(at1.02%) Ut PAL B(at1. Utll & Ina Util & Ind p! Utility Equitier Van Camp Pkg. enezuela Petroim. . Vick Financial (30¢) Voght Mfg Co (1)... Walker (H) (50¢) Walker Mining. West Auto S A ( 1 16% Williams R C 7 24 12 1% ™ % 2% T2 % k) 7 2! Wilson Jones. i Woolworth (FW)Ltd Wright Har (t12%¢) “Y" Oll & Gas. RIGHTS—EXPIRE. B% 2% PeopGL&C.Jan15 1 3% 3 38, 3y Dividend rates in dollars Dased on last quarterly or seml-an- nusl pavment. *Ex dividend. tParily extra. iPius 4% in stock, Pavabie in cash or steck. bPavable in stock, e Adj dividend. fPlus 3% in stock. @Plus 6% in stoek. h Plus 1% in stock. JPlus 2% in stock. kPlus 10% in stock. m Plus 3% in stock. A Plus 8% in stock. D Paid last year—no resular rate. MONEY MARKET. METAL MARKET. NEW YORK, October 2 (#).—Call| NEW YORK, October 2 (%) —Copper money held 113 per cent in the renewal quict; electrolytic spot and future, 7. rate in the official market today. InJ‘Tln steady; spot and nearby, 32.25; fu- the outside market funds mmmum]&"& 2;.’.15‘ lron‘ uiet ;ndku:xc.laln{e‘:i available at 11 per cent and Federal | b E o R P L funds were unchanged at % to % per e 1"1"" bl v cent. s TP Other monetary accommodations were New Bond Offerings.. el NEW_YORK, October' 2 (#).—New S T bond off ‘week ended Nearly 10,000 members of the Ancient | October mmfl?m period Order of Hibernians recently held their | with $345,000 last week and §' annual parade in Edin] Scotland. in the lke of 1930, A & ' | grains. FRIDAY TN PREE CONTROL PLAN N PERATION International Comimittee Ar- ranges. Pool to Regulate Rate of Production. OC'T( l BY LOUIS E. VAN NORMAN, A new plan for controlling the world price of tin has now been made effec~ tive by the International Tin Commit- tee, following its annual meeting a few days ago at The Hague. The interest of the American busi-| ness man in any such development arises from the fact that imports of tin during recent years have been America’s most valuable mineral shipments from abroad. During 1930 almost exactly one-half of the world's total production of virgin tin was required to satisfy the needs of American industries. Alaska is the chief domestic producer, although small quantities are mined in California and South Dakota. However, the output of domestic mines is less than .one-tenth of 1 per cent of the world total. Ranks High in Value. During the past few years, in terms of value, tin has ranked high among the first domestic commodities im- ported into the United States, being exceeded in annual value only by rub- ber silk, coffee, sugar, paper, petro- leum and wool. The United States imports tin in bars blocks and pigs and. according to the Bureau of Mines, most of this comes from British Malaya It is used largely for making tin and terne plate. Sii.ce the United States is the world's most generous purchaser of tin, buying every year more than 40 per cent of all that is sold, any agreement to regulate or restrict output is of importance to American consumers. It is merely nec- essary to mention the canning and automobile industries to show how de- pendent the great American consuming public is on this metal. In common with so many other com- modities during these days of mass pro- duction, tin stocks have been increasing at a rate which léng ago had its effect on prices. A couple of years ago representatives of the more important tin-producing companies of the British Empire met at London and agreed upon‘output and ex- port allotments. Later, changes were ! made in the scheme and a certain amount of support was accorded the idea by the operators of tin mines in the Netherland East Indies and Bolivia, which ranks, after the British Malaya states. as the chief sources of the world | supply. Meeting in London. Early in the present year tin pro- ducers, representing almost all the world ' interests, met in London and agreed on a besic world production with fixed quotas. The scheme became effec- tive last March and was to run for two years. Production quotas were reduced at a meeting in May. Now the new ar- rangement includes an international tin pool with the approval and assistance of the governments of the countries con- cerned. The agreement is to run until February 28, 1933. While the United States stands way down on the list of countries producing virgin tin, secondary tin—that recov- ered from scrap and junk—is produced | in large quantities in this country and such productfon is increasing. Depart- ment of Commerce figures show that stocks at port warehouses in New York at the end of 1930 were almost twice as large as at the end of 1929. Statistics also indicate that the price of tin has declined sharply during the last few years and is now less than half the average price ruling four or five years (Copyrisht, 1931.) New York Cotton Special Dispatch to The Star. NEW YORK, October 2.— Cotton prices were 3 to 6 points lower at the opening of the market today. Pressu™® was heaviest on distant contracts, where commission house liquidation was the chief influcnce. In near months, trade | buyers placed scale-down orders. Opening prices were: October, off 3; December, 582, off 4: Januar: 591, off 6; March, 6.10, off ¢; May, +| 628, Off 5, and July, 647, off 5. Grain Market By the Aseociated Press. CHICAGO, October 2.—Substantial upturns in grain prices early today ac- companied rallies in stock market quo- tations. Unexpected strength shown by the Liverpool wheat market tended also to lift values Opening 3g-12 to % higher, wheat icontinued to point upward. Corn started at a shade to !; gain and sub- sequently scored an additional advance. Wheat bulls emphasized 1,353,000 bushels decrease in Russia's exports s | during the last week and called atten- tion to London reports that a serious financial crisis had shaken Russia. The advices said Russia's unfavorable for- eign trgde balance was rapidly increas- ing and that the finance commissar had ordered rural co-operatives to collect debts forthwith and compel peasants to sell grain. Liverpool reports said grain collections in Russia were much below the quantity planned. that world ship- ments of wheat were expected to de- crease and the British traders consid- ered recent declines in wheat prices ex- cessive. Corn and oats derived firmness from wheat price upturns. Advances in corn were in the face of continued big ar- rivals here. Today's receipts totaled 230 cars, compared with 94 a week ago and 92 at this time last year. Primary ar- rivals were 683,000 bushels, against 373,- 000 on the corresponding day last week and 397,000 a vear ago. Provisions ascended with hogs and Maturity Date Deferred. BALTIMORE, October 2 (Special).— Maturity date of the Maryland Electric Railway first mortgage 5 per cent’ 25- year sinking fund bonds, by the ap- proval of more than 75 per cent of the holders, has been moved up two years from October 1, according to of ficials of the United Raflways & Elec- tric_Co. The plan for an extension was promulgated September 5, when it be- came apparent to officials of the railway that to attempt to meet the maturity by October 1 would be extremely diffi- cult. The interest rate on the issue is 2% |raised from 5 to 6 per cent. There are outstanding about $2,162,- 000 of the bonds out of an original issue of $4,946,000. FOREIGN EXCHANGE. ished by W. B. Hibbs & (Quotations furnighed K Co.) 1d’ Selling checks Zurich, Athens, drach! Madrid. vienna, schi Budap Pragud Warsaw, z0ty..... . 11 Copenhagen. crown.. Oslo, crown. ... Stockholm, - crown. — CURRE FIRM NEW YORK, October 2 (&) .—The Ext . New York Curb e today, Lot after the firm had ml':‘n'ulu‘ SUSPENDED. )BER 2, 1931 ! SENATE COMMITTEE DIVIDED ‘ ON-UNEMPLOYMENT INSURANCE| BY ROLLIN M. CLARK. The likelihood of & unanimous re- | port to the Senate this Winter by its | special committee investigating unem- ployment insurance seems remote, in view of public utterances of members of the committee at this time, Speaking before the joint -annual meeting_of the International Associa- tion of Casualty and Surety Underwrit- ers and the National Assoclation of Casualty and Surety Agents at White Sulphur Springs, W. Va, on Tuesday, | Senator Hebert of Rhode Island, chair- man of the Senate Investigating Com- mittee, said that unemployment insur- ance will not prove a major factor in the solution of the general problem | caused by widespread unemployment, and that it will not relieve conditions as contended by its proponents, ‘Wagner's View, | Another member of the committee, Senator Wagner of New York, has| previously asserted that unemployment | insurance is coming and that it will be here in the near future. It was he who introduced the resolution through which the special Senate committee of three members was appointed. The third member is Senator Glenn of Tilinols. Since the adjournment of Congress {in March, Senator Hebert has been investigating and studying the subject of unemployment insurance, presuma- | bly in connection with the work of the committee which he heads. His ob- servations on the matter, therefore, as- sume real importance as an indication of what he will ask the committee to report. His present opinion seems to be summed up in the following para- graphs of his address before the cas- | ualty insurance groups: | “The experience of other countries with unemployment insurance proves conclusively that it is not a solution of unemployment in f its phases. In- | deed, the proposition has been advanced | by some students of the subject that the risk of unemployment is not a suitable one for insurance. Unemployment in- surance, like other forms of coverage in the limited fleld where it can apply, | will require the accumulation of re-! serves. That is a basic condition of in- surance. Inasmuch as unemployment is not predictable, it follows that there will be not a little difficulty in finding a basis from which to proceed to the accumulation of the necessary reserves. No Final Conclusion, “The studies of the actuaries have not brought them to any final con- | clusions. Such studies have demon-| strated that unemployment insurance| as insurance wiil not relieve those con- ditions which its advocates claim, and in no event will it prove a major factor in the solution of the general problem. That the knowledge of the subject now available is inadequate upon which to base a sound and practical scheme is conclusive, the experience of the gov- ernments of England and Germany ful- ly demonstrate.” Every indication points to a protracted discussion of the entire subject of un- employment insurance in the halls of Congress this Winter. Its proponents will point to the suffering which unem- ployment has caused during the current depression and contend that it is the duty of Government to prevent a repe- tition. The opponents, on the other hand, are likely to take as their text | the arguments advanced by Senator Hebert. The recent financial crises in Great Britain and Germany, in both of avhich unemployment insurance was a | large contributing factor, constitute the greatest single obstruction, in the minds of compeient observers, to the aims and plans of those who are advocating Federal or State unemployment insur- ance in this country. (Copyright, 1931) that the light of day should be per- mitted to shine in upon all their de. tails; that the names of the individuals and brokerage houses should be made public; that the stocks dealt in should be made known; and that all the de- tails of each transaction should be subject to public scrutiny. Legislation Is Difficult. ‘This program, as outlined by the Senator from Indiana, is so ambitious that one has fairly rood reasons for as- suming that little, if anything, will re- sult from it. It was found difficult to legislate the buying of securities in the days of the boom, and it will prove equally difficult to legislate selling in times of depression. Who are Wall Street's “bad boys?"” Rumor has it that Bernard M. (Ben) Smith is chief among the bears. He is & member of the New York Stock Ex- change and makes his headquarters with one of the leading commission houses. | It 15 believed that in the Summer of 1929 he was commissioned to head a bull avndicate with $5,000,000 resources on beuslf of a number of prominent finan- ciers who, impressed with the new era doctriny of economics, felt that the market w2s destined to go higher. The group quick:y reversed its position. They began workiny on the short side and it Everybody’s Business The Spreading of False Ru- mors by Unethical Trad- ers Has Been the Chief Cause of Bringing Short Selli=d Operations Into Disrep te. BY DR. MAX WINKLER. Special Dispatch to The Star NEW YORK, October 2 Short sell- | ing is universally decried ai the mo- | ment. It is held responsible ‘or the| discouraging decline which has chorace terized the New York securities markcte for almost two years. \ A great deal of mystery surrounds those who are supposed to be operating on the short side, and stories told con- cerning their activities assume an al- most legendary character. Senators and Representatives and politicians of lesser | prominence are greatly exercised at the alleged viciousness with which the shorts are understood to select one stock after | another, imering Wt it incessantly until their aim is achieved. The public has formed such an exag- | gerated idea regarding the power of the | shorts that, in the course of the past| week, when weakness in the market was sspecially pronounced, telegrams were dispatched to the President calling upon the country's Chief Executive to save the United States from the menacing bear clique. It was suggested that the President 2sk the heads of the various securities and commodities exchanges to prohibit selling for short account. Principle of Short Selling. To begin with, what is short Sellin, and who are the principal “culprits”? One who has sold a stock which he does not possess, and has borrowed the stock for delivery to the buyer, is short of that stock. The object of selling short is, of course, to repurchase subsequently at a lower figure. The rules of the New York Stock Exchange enforce the completion of each transaction entered into in the ‘regular way’ on the day following Was gossipped that. a year ego, they | had ‘accumulated $200,000,000. ' They should have more today, if the story is ue. Jesse Livermore is anuther who is be- lieved committed to the short, side. His activities, real or imaginary, date back to 1907, when he w walked out of the wreckage of tha: year with 1o less than $3,000,000. He 1 »e- lieved to have amassed millions as a re- sult of the collapse of the wartime boom. He had been sold out (that is, |left with only one million), so rumor has it. at the time of the Coolidge market, :vmgh he :&d mlsse&. He is understood 0 have n on the short side since September, 1929, | Considerable prominence was gained by John Washington Pope, one of ths youngest and most daring of Wall Street’s bears. He is a memier of the | Stock Exchange, and organizsd an in- | vestment trust which, instead of busing, | sold_securities. When Pope. presented | his first annual report to stockholders, the portfolio consisted of exactly noth- ing. To him are attributed activities in | sllm‘moné thlrdwlr;,"onz of the pillars the transaction. . Hence. the speculator | gomery Wast Log 1928 and 1929, Mont- who has sold short, is forced to borrow | °™FY Ward and Fox Film. the stock he has sold but does not Other Traders Mentioned. own, and make actual delivery of it | Another prominent trader committed (hext day to the purchaser. This he |t the short side is William Danforth of ;:;?rr’r;plzmflm !:lkm!u!‘?: ‘u*eflso lb:gkerwx | Boston, who is said to have abandoned arket v e s i to the one from whom he borrowed it | b et wih “The optimn e nn and then returning the borrowed stock | neweq weakness in ’l’h':"m.;knn;euflr;; to the lender when he has covered— ! = that is, bought back the stock. | that period would seem to prl:::fi:"fu'{';" Danforth has acted When a speculator is short of stocks | on Which, &0 amidend. pecimes. dus be | o aitle is known sbout the operations has to pay the amount of the dividend | 3f J0%€Ph E. Higgins, except that those to the person from whom he borrowed | Fo think they know the young eurb the stock, to make delivery to the one | JDIeT Classify him as a decided bear. to whom he sold the stock. ographer described him as a “triple- It is obvious that there is nothing | threat man of Wall Street, runner of radically wrong with short selling as l,"°°l* for the mighty and for himself, such. Just as there are people who | located and distributor of stocks, Inde: anticipate higher quotations, there are Pendent plunger.” According to his others who look for lower levels and |friends, he has insured himself and his desire to take advantage of their belief. [ {3mily against the whims of fortune by The difficulty, however, arises when | M€ans of an irrevocable trust. speculators, committed to the short| If one inquired as to who other prin- side, resort to various methods not | CIPal bears are, one would hear the entirely ethical, provided they achieve | 18Mes of Wall Street's most select deni- | what-they set out to accomplish. Some |7¢ns. Matthew Brush, Prank Vander- such speculators are blamed for spread- | lip. Percy Rockefeller and Bernard Ba- ing rumors of all kinds, mostly of an |Tuch are occasionally mentioned, with- adverse character, pertaining to the [Out. of course, furnishing conclusive companies whose stocks they are |€vidence of these men actually being “bearing.” Very often, such rumors are | committed to the short side. unfounded, but, by the time they are | A very well informed exchange official denled, irretrievable damage has been | informed the writer that there sre oo done and scores of innocent owners of |ands of shorts: that the United States shares may be wiped out. It is the L:as definitely discovered the short side method ordinarily employed by some |of the market as a lucrative business, speculators which 1s objectionable, | and that their members comprise men rather than the business of short |from all over. He further stated that selling. | experience teaches the wisdom of main- A halo is often created around the taining a free market, and that the Wall Street bears. One does not defi- | Stock Exchange would gladly accede to ehitely know them, because their ac-| whatover requests Washington might tivities are not public information. It | care to make upon it, but would insist is largely for this reason that these that Washington absolve the exchange mystery men are bclieved to be en- from the responsibility of the conse- dowed with much more power than | quences. they actually possess. | (Copyright. Washington also seems to have suc- N cumbed, and the Republican floor leader of the Senate, James E. Watson of Indiana, expresses the belief that steps would be taken to bring about a thorough and searching investigation of short_selling practices. According to Mr. Watson, there are many Senators who believe that all short transactions centimes. The dollar ted at 25 should be thrown open to the public; francs 303, cem,lmu.m ki ————————————ee e STOCK AND BOND AVERAGES By the Associated Press. From Yesterdey's 3:30 Edition. STOCKS. 50 1931. by the North American ewspaper Alliance, Inc.) PARIS BOURSE iECES. PARIS, October 2 (#).—Three per cent rentes, 85 francs. Five per cent loan, 102 franes. Exchange on London, 100 francs 75 20 Industrials. Utilities. FINANCIAL. rar A BUYING OF STEEL CONTINUES QUIET Public Works Orders Remain Bright Spot in Dull Market. By the Associated Press, NEW YORK. October 2.—A few large individual orders, mainly for publie works projects, are conspicuous in an otherwise predominantly dull iron and steel market, Iron Age says in its weekly review. 3 “In general,” the review says, “buy- ing of iron and steel is exceedingly cau- tlous, although seasonal forces have resulted in slight gains in demand in certain districts. Recent wage reduc- tions by steel companies have proved an unsettling influence, increasing the pressure for price concessions and causing the postponement of purchases except for urgent needs. With steel producers strongly resisting current ef- forts to undermine the price structure, the fact that demand is showing any gain at all is regarded as an encour- aging indication. The betterment is reflected in ingot production, which has risen to 31 per cent from 29 per cent a week ago. Recent Price Drops. “While prices of finished steel and pig iron appear to be holding, weak- ness has cropped out in cast-iron pipe on the Pacific Coast, and scrap prices have given further ground. Heavy melting grade has declined 25 cents a ton at Pittsburgh and Chicago, and the Iron Age composite price for heavy steel scrap has cropped from $9.17 to $9 a gross ton. This is the lowest level in the century, reached only once be- fore—in mid-November, 1914. “Automobile production in September is estimated at 180,000 cars, and Octo- ber output is expected to drop to about 160,000 units. The poorest month of the vear was January, with a total of 78,347 assemblies. Steel producers hope to see a gain in specifications from the motor car bullders by the middle of October, but it is evident that there will be no haste in starting production of new models. The motor car trade sees little chance of stimulating re- tall sales in the remaining montbs of the year, and therefore plans to dela: the production of stock cars for dealers until cold weather sets in. when their plant forces will be in employment. ¢ + » greatest need of “The stove trade is one of the few active lines among the smaller con- sumers of iron and steel. Radio man- ufacture, which recently reached a fair tolume in the East, is now falling off. Tin Plate Output. “Tin plate output is holding at about 45 per cent of capacity. although mill operations are increasingly intermit- tent Statistics of the canning season. now coming to a close, indicate that only 11,000,000 cases of tomatoes were put up, compared with 17,000,000 in 1930 and a nine-year average of 13- 500,000. The corn pack exceeds that of last year by a comfortable margin, but other vegetable packs are generally &::r:rmo'(n? 1"“@"3?;00 cases of peaches Ve €d in California, agai: th;’.;] 13.000,000 in 1930.” e e Iron Age composite prices for pig iron and finished lteelplre un- changed at $15.42 a ton and 2.116 cents a pound, respectively. Baltimore Markcts Special Dispatch to The Star BALTIMORE, Md.. October 2—Po- tatoes, 100 pounds, 80a120; sweet po. tatoes, bushel. 40a65: beans, bushel, 81.25; beets. per 100, 2.00a2.50; cab- bage, bushel. 25a35; carrots. per 100, .0024.40; corn, per dozen, 10a18; cu- cumbers, bushel, oia hamper, 40a50; 3 3.50; caulifiower, crate, ery, crate, 1.25a3.5 Per, 758295 okrs peppers, hamper, A 100 pounds, 1.75a2.00; spinach, bushel, 85a1.00; tomatoes, hamper, 35a1.00: canners' stock. bushel, 40a60: apples. bushel 5,4001.25; cantaloupes, ~crate Dairy Market. Chickens. 22a27: Leghorns, 19a22; old hens, 18a26; Leghorns. old. 14a18; roosters, 12al5: ducks, 13a20: pigeons, pair, 15a20; guinea fowls, pair, 25a30. Eggs—Receipts, 751 cases; current re- ceipts, 15a23; hennery, whites, 28a30; nearby firsts, 24a25; Western firsts, 24a25. Butter—Good and fancy. 30a35; ladles, 20a22; store packed, 15a16. Live Stock Market. Cattle—Receipts, 2,000 head; good supply; market dull. Steers—Choice to prime. none; good to choice, 7.00a7.50: medium to good. 6.00a7.00; fair to medium, 5.50a6.00: plain to fair, 5.00 to 5.50; common to plain, 4.2585.00. Bulls—Choice to prime, none: good to choice, 4.5024.75; medium to good, 4.00 a4.50; fair to medium, 3.50a4.00; plain to fair, 325a3.50; common to plain, 3.00a3.25. Cows—Choice to prime, none; good to choice, 4.2524.50; medium to good. 3.75a4.2 fair to medium, 3.25a4.75; plain to fair, 2.25a3.25; common to plain, 1.5082.25. Heifers—Choice to prime, none; good to choice, 6.00a6.25; medium to good. 5.75a6.00; fair to medium, 5.25a5.75; plain to fair, 4.75a5.25. common to plain, 4.00a4.75; fresh cows and spring- ers, 30.00a60.00. Sheep and lambs—Receipts, 400 head: light supply, market steady; sheep. 1.00a3.00; lambs, 3.50a8.25. Hogs—Receipts, 600 head: light sup- ply, market higher; lights, 5.90a6.20: medium, 6.10a6.35: light pigs, 5.50a5. heavies, 5.60a6.35; roughs, 4.00a5.00; pigs, 5.606.10. Calves—Receipts, 50 head; light sup- ply, market steady; calves, 4.00a10.50. Hay and Grain Prices. ‘Wheat—No. 2 red Winter, export, no quo:a:&ons: No- 2 red wmters. garlicky, spot, domestic, 49; October, 49; Novem- ber, 5015. creamery, process, 23a24: Corn—No. 2 yellow, domestic, spot, 56; cob corn, 3.00 per barrel. Oats—No. 2 white, domestic, spot, 31a32; No. 3, 30a31. Rye—Nearby, 45a50. Hay—Receipts, none. New hay is starting to arrive in increasing quan- tities, but so far no official grading has been attempted, selling being strictly jon merit. Demand for old hay slow and market is dull and quiet, with prices in buyers' favor at a range of 14.00a18.00 per ton. Straw—No. 1 wheat, 9.00a9.50 per » 192¢ * New 1931 low. 0 Rails. .0 20 Industrials. Today .. . 722¢ Previous day. Two years ago. Three years ago. High, 1931, Low, , 1929, B * New 1931 low. (Copyright, 1931, Standard Statisties Oo.) ton; No. 1 oat, 9.00a10.00 per ton. CONSTRUCTION LEADERS PLAN BUSINESS REVIVAL By the Associated Press. Construction leaders of the country are in conference here to develop a program of action that can command the support of general business and Government, so a definite upturn in business may be brought about imme- diately. The conference, under the auspices of the Associated General Contractors of America, is to be addressed by Silas H. Strawn, president of the Chamber of Commerce of the United States. It is expected plans for further co-opera- tion between the contractors and the Chamber of Commerce will be worked out. A Representatives at meeting, among others, are Peter A. Bogdanov, chair- of board of