Evening Star Newspaper, January 2, 1932, Page 16

B—-4 %% INVESTMENT TRUST POSITION CHANGED Portfolios of Many Compa- nies Affected by Decline in Seourities. Special Dispatch to The Star. NEW YORK, January 1.—The posi- tion of the general management invest- ment trusts and fixed trusts at the end of the year is quite different from that of the commercial banks, savings banks and insurance companies, in that vol- untarily or involuntarily, they adopt the practice of writing their portfolios of securities down to market instead of carrying them in their statements at costs or at the levels now permitted by the Federal Reserve and State banking and insurance officials. This practice shows up the actusl amount of depreciation that has oc- curred in their investments since last report and has the value of per- mitting comparisons between the mar- ket prices of the trust stocks and the asset worth of such issues. Securities Prices. Unfortunately, the year just closing witnesses most securities at or near the Jowest point during the period of de- pression. At the end of March quar- terly statements of the trusts showed up better in some respects than those for December 31, 1930, as the price gains last January and February offset the reactions in March. June statements were not $o good, for in April and May there was a heavy fall in prices, though the exhibit improved materially between the first week in June and the end of the month. September quarterly state- ments had to carry the full effect of three months of declines, which aver- aged nearly 50 points in listed stocks. Inasmuch as most trusts have a low percentage of bonds, they will not be greatly affected by the fall in bond quotations in the December quarter, but again they reflect the shrinkages in all classes of common and preferred stocks . during the period. Altogether, there- fore, the gross totals of trust securities at the end of this year will be by far the smallest, when measured by current market values, of any term in the his- tory of these financial corporations. This is indicated in the prices to which thelr own common stocks and senior securities have dropped in recent months. Many of them are now mem- bers of that growing list known as “penny stocks,” which includes those selling below 81. Not a few are quoted in low fractions, which two years ago were in great demand between $50 and $75 & share. Some that are now avail- able at $2 and $3 & share were sought after in the Summer of 1029 from §75| to over $100 a share. “Trading Profits” Few. The investment trust that has a sim- ple financial structure involving only one class of capital stock, has no prcb- Jem other than wafting patiently for a| recovery in markets which will bring up the vaiuss of its portfolio and there- by increase the market and sasset Value of its stock. On the other hand, those with senior shares and debentures are in an uncomfortable position. They de- pended in the past for appreciation in their portfollos, or to “trading profits,” to pay dividends on their common stocks and to strengthen the status of their preferred stocks and bonds. The income from their portfolics in the form of dividends on stocks owned and in- terest on bonds was used to cover the dividends on their own preferred shares &nd the fixed charges on their cG2ben- tures. This income has steadily been de- creasing as th> number of corporations Jowering or cmitting dividends has run | into the hundreds.. The reduction in| earned income of the trusts is making it difficult for fem to pay dividends on their own preferred stocks. It is ex- pected that the number of thos: still maintaining dividends will be material- 1y raduced in tiie next few months. The problem of continuing.interest on de- benturzs is not, s far, a serious one. The embarrassing eondition in respect to trust debentures is in maintaining tne proper ratio between debentures outstanding and total company assets. | Usually this is fixed in th> indenture at 125 per oent of assets to debentures issued. It is known that already some trusts have been unable to maintain this proportion, but that trustees have not exacted any penalty under the pres- ent abnormal conditions. FINANCIAL, Nl Kvie~NING STAR, WASHINGTON, D. C. SATURDAY., JANUARY 2, 1932, { Sales— Add 00 Stock and Dividend Rate Uit Corp pf «3). Unit Fruit (3). U'nit Gas&Im(1.20) ] R & Forn Sseur U 8 Gypsum (160).. U 8 Indus Aleohol 8 Leather. . Leather (A). Plpe & Féry (1). Pipe&Fy 1st 1.20 Rubber. . . Rubber 18t of. . Smtg & Ref (1). Steel Corpa (4). S Steel pf (7).... United Btores pf (4) Univ Pic 1st pf (8).. T4 Utll Pwr & Lt A (2 76% 11 Vanadium Corp.. 109 81 Va Elec&Pwr pf (6). 71% 20% Vulean Detin (4) 51 115 Wabash R R (A).. 27% 17w Waldorf Sys (1%) 15 1% Walworth Co. ... 8% 1% Ward Baking (B)... 20% 24 Warn Bros Picturei 46% o PSPy e s DrormrrmnaSe % 10% 15% 8Tw 20% 20% 264 25% 152% 150 b2 5714 31 U u U 8 8 8 8 8 8 s u o U U u U u ©@ o (Centinved from Page 3.) High Low Close Chee | 34 22'4 NEW YORK STOCK EXCHANGE Received by Private Wire Direct 6 The Star Office. Divi Net. 334 334 21l 1T% 2% 2% 35 1067 15% 16% 3 29 6 78 12 5% " Worth} Yellow % Zenith LY % Peop G | payments based on t % ER-divic stock. D Plus 3% Btock and Warren Bros cv pf 3. Wesson O11&Sno(2). West Pa Elec A (1), West Pa Pwr pf (8). 4 Western Dairy (A).. Western Maryland. . Western Unfon (6).. Westinghouse (2%). Wsthse EM 1stm3% White Motors. ...... White Rock (t4%). White Sewing Mach. Willys- Woolworth (14.40). Young Spring& W (1) Ygstwn Sheet&Tube. 6% Zonite Prod Co Dividend rates as given in the above table are the annual eash end & B o8 m Paid this year—no regular [l | Sares— Add 00 208 2 108 ose Chee 13 -2u) " -1% dend Rate High. Low. €l 13 18 14% 144 Overland. ngton Pump. Truck. . Radio. RIGHTS—EXPIRE. L&C..Jan 15 2 1% 1% W-% he Balf.yearly ds r oc) TPartly extra Intest cusrterly o 35 than 1 7 in ] preferred atock rate. nPlus spec! in stoek. BROKER LOAN TOTAL AGAIN SHOWS DROP Special Dispatch to The Btar. NEW YORK, January 2.—The week- ly statement of the Federal reserve on| brokers’ loans showed a decrease of | $20,000,000 during the week ended De-| Shifting of Securities. During the year there has been a| great deal of shifting of securities by | the investment truste, resulting in lo:ses | that are indicated in quarterly state- | 0 but at the same time strengthening | the permanent investment status of the | corporation. Issues that have a poor futvre have been sold: others of a more | promising character bought. A number | of the larger trusts have added to their cash ftems, though these are relatively small compared with the amounts that | were at the disposal of the trusts as| late as the end of 1930. While in general the trusts are in| discredit with the public which lost 5o much money in them, there is confi-| dence that with a return to bstter con- | ditions in markets there will be a re- vival of activity in the common stocks | of the better managed organizations and | that this $5,000,000,000 adventure into & new field of finance in the Unitad States will justify itself in nbout the same ratio as others that werz nitiated | in 1928 and in 1929. (Copyright, 1932.) Washington Produce ound printe, 34 tub, 33 28239; current re- Butter—One- Eggs—Henr ceipts, 23225 Poultry, alive—Turkeys, old toms. 20 cember 30 to a new low record of $501,- 000,000. This compares with the pre- | vious 1931 low of $511,000,000, made last week, and with $1,926,000,000 on | Dezember 31, 1930. | Loans for the account of member benks were $544,000,000, compared with $563,000,000 a week ago. Lcans for out-of-town banks totaled $41,000,000, against $51,000,000, and loans for the account of others amounted to $6,000,- 000, contrasted - with $7.000,000. De- mand loans constituted $442,000,000 of the total, against $4§1,000,000 a week | ago, and time loans fvere $149,000,000, against $160,000,000. The New York Federal reserve dis- trict rediscount rate remains unchanged | at 314 per cent. Markets at a Glance NEW YORK, January 2 (#) heavy; General Motois at new | Bonds, irregular; United States Govern ments firm. Curb, heavy: oils steady | Foreign exchanges, irregular: yen a‘ | new low. Cotton, sugar and coffee, holiday. | and corn Hogs, steady holiday. Cattle, highe. | | #22; young toms and hens, 25223: ¢chick- ens. 3 pounds and over, 18a21; 2 to 213 pounds. 21a22; broilers, 112 to 2 pounds 21822; hens, large, 14a16; emall, 12a14 Leghorn hens, 13ai4: roosters, 10; keats, young, 40a45; old, 2535 y, dressed—Turkeys toms and hens, 27a30; chickens, 3 pounds and over, 20a22; 2 to 2'; pounds, 22a25: broilers, 1% to 2 pounds, 23825 hens, large, 17a19; small, 15a17; Leghorn hena, 14215; roosters, 13: keats, young, 60e70: old. 50 Meats— Beef, prime, 16 choice, 15 good, 12'2a13; cow, 912210 lamb, top, 15; fair to good, 14a15; common, 11212 veal. top, ‘4: medium, 121,813 loins, 8 to 10 pounds 14al4's pounds, 13; fresh I s, 13; 18 to 22 pounds, 16a17; strip bacon, 16817; 80-pound tins, 8l:; packegs, 9; pounds, 7a7'; Fruits—Strawberries, pint, 15a18; ap- ples, bushel baskets, 40a75; fanecy box stock, 2.50: pineapples, 3.50; grapes. Al- meiras, 2.0002.50; Emperors, 2.00a2.50; cranberries, 1.7582.50; oranges, Cali- fornia, 2.75a3.75; Florida, 2.50a3.59 pears 2752325, bananas, 17522 emons, 3.5085.50; grapefruit. 2.25a2.7 tangerines, 1.2521.75; kumousats, qu 10a15; persimmons, 1.0022.00. Vegetables — Potatoes, Maine, 100- pound sacks, 1.25; New York, 150-pound sacks, 1.75; Iéaho bakers, 100-pound tacks, 2.25; sweets, Eastern Shore. 508 75; red, 76a99; lettuce, Iceherg, 5.00a 6.50; Florida, 2.00: broccoli, 3.50 caulifiower, 2.00a2.50; carrots, Celifor- nia, crates, 400: nearby, buchel, 75a 1.00; string beans, 2.00a2.50; limas, 4.00 24.50; peas, 8.0029.00; beis, 100 bunches, 3.0024.00; salsify, per dozen bu 1.00a1.20; peppers, 3.00a3.50; kele, 60; spinach, 1.00; mushrooms, 801 00} turnips, 50a80; artichokos, 4.00e500: okra, Cuba, per pan, 2021.00: Flcrida, per bushel, 8.2583.50: cebbage. now, 40- pound basket, 1.5082.80; old. 109-pound sack, 1.25; celery, 3.50; ye'lo bushel baskets, $.50: cggp’ 389 cucumbers, rots, Califor: s matoes, 6-pan C:5.% old toms, ung to lard, com- 3@ ot 821ary Cut Ordered. | BALTIMORE, January 2 (Special) — | WASHINGTON STOCK EXCHANGE QUOTATIONS AND DAY’S SALES SALES. Washington Rwy. & Elc: pfd.—2 at 86. Federal Storage pfd.—8 at 100, AFTER CALL. Mergenthaler Linotype—2 at 55. Washington Gas 6s “B"—$200 at 100’4 Columbia Sand & Gravel pfd.—10 at 9972, 10 at 98>, Bid and Asked Prices. BONDS. PUELIC UTILITY. & Tel. 415 '30.. & Tel. ctl. ir. b5 Poi. R R & Pot. O C & P. Tel of Va. 85 Ca R orgetown Gas 1st 95.... Potomac Elec, Cons. 5% Potomac Elec. 6s 1 Wash., Alex. & Mt Washington Gas 4 Wi 51 Amer, Tel Tel 3 58 Ges BspEiss ol Vernon' etf Ns T . series A Gas 65, series B Wash. Rwy. & Elec. 4s.. Barber & n Chevy Chase Club 8128 Columbia_Country Club 6izs W M. Cold Etorage 3s.... STCCKS. PUBLIC UTILITY Tel. & Tel. 10)...:.....*116% 1 T-aciion Co. (4} 13 s Light. Co. (18) .. . Eteamboet (1 o Ross. Amer Capita v Ga 08 . & W 130 210 r 5'2%, pid Wash Rwy. & EL com. (T) Wash. Rwy. & EL pfd. (6) NATIONAL BANK Min Capital (14) Columbia (12) Commercial (stemped) (10) A reduct'on of 10 per cent on salavies | Dis of the office force and executives of the Merchants & Miners'’ Transportation | Co. was put into effect today. This &c- | tion, which does not epply to the chip crews or other employes, affecis about 150 men of the fact that the company regular quarterly dividend" last and has not curtailed its schedules, W It came as a surprise in view | Lincoln (10, etropolitan (14) Riggs (18) a it TRUST COMPANY. Sec. & T (18) Natl. Sav. & Tr. (121) Drince Georges Bi. & Tr. (6) STOCK AND BOND AVERAGES By (he Asoociated Pr SATURDAY JANUARY 2. STOCKS. 59 Indus rials. Menth 2g0 Year ago. .. Thrae yeers ago.. Fl igh. Lev, 1931-32. High, 1930. ... I2v, 1920... Hgh, 1020. . Lo, 1222 Today Previous ¢z, Wesk ago. . Mon‘h 250, Righ, 1 Lov, 1° igh squash, o eBawnn® Ty 23 Bid. Asked | 105 % 5 T Peoplss Druz 8. prd | B2l 22 M & G, pr Union Trust (8s) S Wash. Loan & Tr. (i4) BAVINGS BANK. Bank of Bethesda (61)..... | Com. & Savings (1) | East Washington (12) | Potomec (10) « 5 | Bec. 8 n. Bk. (17) B i ] ‘i been cracked, according to Deputy Gar- | iremen's (8) Nationel Union (15) TITLE INSURANCE. Columpia (6 g | Real Estate | MISCELLANEOUS. | Barber & Ross. Inc. com | Col. Medica} Bidg. Corp. (5 | Gol' Band & Gravel prd. (1) D C. Paper M, pfd n ., () Emer. Bromo- B T | Federal Storage pfd. "(8) Fed.-Am. Co. com. (1.20f) Fed -Am. Co. pfd. (8 Lansion Mootype (8) Mer. Tr. & Btge. com Mer. T:. & Stee. ptd. ( Mergenthaler Linotrpe N pld atl Mtre, & In; Unlizted De‘;‘nrlm: t. These securi‘tes not 1 Minimum 1 Hotel (s ... Press Bldg. 1t S BTOCKS, Anacost'a Chapin_£e | ¢ Bank hingten Title I-surarce Co. Washinetn Bare Ball Clvh | Woodridge-Langdon Eav. Bank an| an Hartford Bank Closed. HARTFORD, Conn., January 2 (#).— The City Bank & Trust Co. did not open for business this morning. ‘The ! | bank was incorporated in 1851. In a repert to the State Banking Commis- sion the savings deposits were given at | $15961,220, commorcial deposits at $8,622.377, capital $1,000,000 and sur- | pis$2,000,000 Highway Bond Interest. NEW YORK, January 2 (#).—Com- pletion of ~arrangements was an- nounced today for payment of interest on all Cuban highway bonds. In addition, the Cuban government is re- tiring one scrial issue amounting to 1$6.250,000. Money for this pur | was forwarded last week to the Chase | National Bank. BALTIMORE STOCKS, Special D h to The Star BALTIMORE, Md, January 2 . Bales ETOCK! 109 Arundel, Corporation 87 Consolidated G, 18 Consolidat Gas 5 28 New Amaterdam 26 Pa Water & i | et 'POST OFFICE ROBBED BINANC FA LS BOND PRICES FIRM IN SMALL MARKET Both Domestic and Foreign Lists Show Steady Trend. BY F. H. RICHARDSON. Special Dispateh to The Star. NEW YORK, January 2.—Consider- ing the size of the advances in bond prices on Thursday, the action of the market today was surprisingly good. Many of the gains of the previous ses- sion were maintained, while scattered through the list were advances in do- mestic and foreign issues rnngini from 1 to 2 points. Again the list of Gov- ernment obligations showed the lifting of pressure from this division of the market. The incentive to sell bonds to estab- lish tax losses, or to create a higher ratio in bank statements of cash to deposits, was no longer active and this helped in some measure to sustain prices. In high-grade corporation bonds, which did not figure in the year-end rally to the same extent as the second-grade obligations, were distinctly firm today. This included the first mortgages of roads like Atchi- son and Union Pacific, which were up % to a point, and industrials and public utflities of the character of Standard Oil Co. of New Jersey, Amer- ican Te'ephone & Telegraph and Con- solidated Gas. It influenced, also, bonds like Great Northern 7s and Northern Pacific 3s. In spite of the extreme weakness in Western Union stock, the different obligations of this company advanced 1 to 3 points. The railroad issues that have been under most pressure for the last three months and which rallied with greatest vigor on Thursday inclined to heaviness. ‘This was indicated in losses from 1 to 2 points in Chicago & Northwestern 43,5, Erie 5, St. Paul 5s, Missourl Pa- cific 55 and Frisco 4s. Regular interest was declared today on the last named. In the industrial list, conspicuous weakness developed in Armour of Dele- ware 5155, owing to the poor report of the company for 1931 and in Interna- tional Telephone & Telegraph 4'ss and 55, which were down 34 to 4 points. This represented & relapse from Thurs- day’s buoyant market in these iesues. Market Street Railway 7s gained 3 points on small transactions, Nearly all of the United States Gov- ernment issues were higher, with the Treasury 3s up 33 and nearly dupli- cating Thursday's high. Other issues gained 'z to 4. The 3';s touched 88, ccmpared with their recent low of 84.20. The features in the foreign list were the Argentine 5158 and 6s, which gained | from 1 to 3 points and reflected the fulfillment of interest payments due January 1. The German government 51,5 started 1!, points lower, but grad- ually worked back to about Thursday's high point, while the 7s held all of Thursday's gain of nearly 8 points. Some of the German municipals were up, while others were lower. In gen- eral, the entire foreign list was steady and some of the defiuited South Ameri- can issues made slight gains. As an evidence of the continued financial strength of European borrowers, Hol- land announced the retirement shortly of the dollar issue of $60,000,000 of 6 per cent bonds at par on March 1. AT RIVERRDALE, MD. Yeggs Get Cash end Stamps, but Amount of Loss Is Un- determined. Special Dispateh to The Star. RIVERDALE. Md. January 2.—An undetermined amcunt of money and stamps were stolen from the local post | office Thursday night by yeggmen who blew the safe. Deputy Sheriff Thomas H. Garrison, who investigated, said the robbers gained entrance by fcrcing a door. He declared the robbery was the work of professionals. who used gloves and left no fingerprints. Postal authorities were also called and began an investi- gation. Mrs. Mary Worley is postmaster in charge of the local office. This was the third time tre safe in the office has rison. HUSBAND SUES DANCER Attacked Him and Called Him Worm, Hair Merchant Says. LOS ANGELES, January 2 (#)—Miss Janini Smolinski, erstwhile Polish beauty queen and former premier danseuse of the “‘Follies Bergere” of Paris, who mar- ried Walter Grabowski, wealthy Los Angeles hair merchant, last September 3, to avoid being deported as a non- quota immigrant, was sued for divorce ‘Thursday. Grabowski said she beat him in bed last Monday when he remonstrated with her for returning home at 6 am. After striking him with her fist until his lips bied, she celled him a worm, thz2 merchant allcged. CHICAGO STOCK MARKET CHICAGO. January 2 ().—Following | is the complete official list of transac- tions in swcks on the Chicago Stock Exchange tod Cales STO 1L0'Adams Rovely 350 Alzswortn MiE 160 Allied Mot 1nd 1200 Bendix Avia.ion 250 Borg-Warner ... [2F E L. It 20 Gent 11l 100 cent Ll 5530 Chicaga [ 1130 Chicaso, 1oy 200 Citles Service 750 Comwith Ed rts 500 Cont Chica g0 500 Cont Cinicako Pf Corp estors Pl 13 1300 Cont 1400 Cord 800 Corp 100 Coip Se 50 Ele¢ 430 | 1) Cent rf 48 °58. ! Inland St ¢%s A'T8 | Int Rap Tr 68 68 | Int Rap Tr sta | Int & Gr Nor 53 '56. [or s v BONDS s emves] Received by Private Wire Direct %o The Star Offics UNITED STATES. (Bales are tn $1.000.) Hign. Low. Close. Lib314832-47. 8 80 9726 List 4%832-47 52 th4ye33-38519 8 1961-5. 99 24 99 22 87 8812 93 9216 95 30 HE'49. s M4 38 43-47, % n46-56. 844-54... 113 99 18 99 17 %®47-52.. 88 102 16 1024 10216 Sues SIh. Low Close 15 22 2 19 3 80 46 42 L1063 1 69% 2 92 6 10415 14 104% . 56 981y « B0 100% 37 99 43 1041 2 73 11 44w L4 Uss US3 USs3 Us3 US3 US4 US4 Allegheny Allegheny b Allis-Chalm 68 '37. Am F P 58 2031 AmIGCh5% Am Intl 5% Am S&R 1xt 6847, Am Sug Ref 6s°'37. Am T&T v 4 %839 AmT&Tbs 65 Am T&T c tr 6s Am T&T bs Am T&T 5%s 43.. Am Wat Wks 6576 Arpentine 5 Argentine M . 13 50 Argentine 63 .91 514 Argentine 6s Oc'59. 30 50 Argentine 63 A '57. 57 4914 Argentine 6s B'$8. 3 50 Arm & Co4%a’39. 36 731 Arm Del 53%s'43... 32 64is Atchison gn 4s'95. 72 88 AUCL1st4s’52.. 10 78 AtCL 4%s 64 Atl Ref db 5s 3 Australia 438 'S Au ia 63 67, Austria 7s '57 ctfs. 39 591 Bk of Chile 6%s '57 Bk Chile 6% s '$1. . Bell Tel Pa 63 B 43 Bell Tell Pa Belglum 78 58 Belgium 7a ‘56 Berlin Cy El 68’55 Berlin CE 6%8 60 Beth Stl pm 58 °36. Bollvia 78 '69. Bolivia 85 47 Bordeaux ks Bos &Me b8 '§7 Brazil 6348 27 Brazil 7s Brazil 854 Bremen 7s°35..... Pk Ed gn A 58°49.. Bkiyn Man 6s '¢8. . Bkiyn Un 1st §8°60. Budapest 8 '62. Buenos A 6s°61 Pv. Buft Gen E 4 %231 B R & Pitt 4%8°s7. Bush T Rldg 68'60. Callf Packing bs "4t Canada 4s ‘60 . Canada 434 n Can Nat s Oct '89. Can Nor 7s db "40. ., Can Pac 4%s'60. .. Cent '11 GRE 58’51 Cent Pac 4s 49 Cen Ry NJ g Cert-td db b R Ches Corp 65 '47... C&Ogen 4192, C&O04%sB'95, CB&Q4%s'17 hi & Est 111 5851, Chi Grt West ¢8'59. Chi M & StP 4%sC C M StP&P 53 °76.. 3 CM&StPadjba.. 35 Chi&NW 4%s 2087, 1& NWen4¥k Chi & NW 6%s'36. Chi RI& Prf4s 84 ChiR lev4%8760. Chi Un St 58 44... . Chi Un Sta 6%3 ‘63 Chile 83 '61 Cop db bs 47. CCC&St L 4 g8 E Colomb 63 Jan ‘§1. Culomb §8'61 Oct Col GRE 53 May's2 | Col G&E cou 53761 Colo & Sou 443" Colo & Sou 4145 80 Com Inves 5%s 49 Cor G NY 4%5'51. ConG N Y 56%8'45. Con Pwr Jap 6 Consum Pow 5 Copenhng 5 °'52... Cuba 5%s 45 Cuba Nor 5 Crecho 8s Denmark 518 ‘G5.. | Denmark 61 °42. D& R Gren 4836, D&RG W bs'65.. Det E GER4 4861 . Det Edison rf 58’49 Deutsche Bk 6733, Dodge Br cl 6840 Duquesne 4% & Duteh Bast 16 Erle 15t con 48 Erie gen ¢s Briscv Erfe 5575, Minland 5%s 58, .. #isk Rub 83 '41 Fig E Coast 58°74¢. ) 112% 112% French T%s 110% 111% Gelsenk’hen 68°34. jen Cable 548 '47. Gen Motors §8°37. Gen Th Eq 0 German § %% German Bk 6! Ger Cen Bk Ger Cen Bk 6: German 7s rep ‘49, Ger Gen E1 7845 . Goodrich cv §5 "45. (RN Goodyr Rub 58'87. . GrandTr af db 6536 | Grt Nor 41576 D. G:‘ Nor gn b%a ‘62 Grk Nor gn 7s '38. . Hud & M adi 68 "37. Hud & M rf 58 °57.. Humble O11 65 "87.. Humble O 5%# '32. 111 Bell Tell b 111 Cent 43 '53. 93 56 827y 82% 99 99 99% 95% 100% 100% 454 4, 354 951 75 40y 11 Cent 4% '66 111 Steel 435840 Int & Gr Nor 68 ‘52 | Int Hydro El 68 44 jershe v A hey B Neill 160 Lindsay Nung bl 50 Manhnt Ded 130 Marshay Field h 50 Ma I . 1y | il | 231 51z | 1l 3% H l 109 Pub Ser 2% 20 Quaker Oa's > 9% | 3 aytheon vic . | 100 Reitance Intl . " No- Nor'west Banc: ] eoples G Lt & C Tts L | L&D 400 Uil & Ind 100 Van Sickien A 50 Vorisx Cup. - n Co.. e Pum o Weirp L & el A 20000 Insull Util 85 1940 3000 Chi Ry cod 55,1927 3000 Gni_ Ry 55 1627 'Stock sales todsy—56.000 shares. Bona sales today—337.000. CMK&T4%sT Int M Co bs ret's1. Int Match s '47. Int MM col tr 6341 Int Pap 58 A "47. Int Pap 88 ‘58 IntT&T4ka'52.. Int T&T cv 4%8'39 Int T & T 6s'66. . Irish Free St 58 '60 taly 78 'B1. . Italy Pub S 78 '62.. Japanese 5%8 ‘85, Japanese 6% Kan City Sou Karstadt 6s '43. ... Kend 538 48 ww.. Kreug & Toll 5859, Laclede 5%s D '60. Lig & Myers 58°61. Loew's 65 ex w '41. Lorillard 5s '51. . La & Ark 5360 Lou G & El 58 '52 L& Nunj4s'40..,. &NB5sB2003.... 611 19Y; 50 42 68 97 6% 83 401 962, 82 IcKes & R 5% 50, Manh Ry 1st 48'80. Market St 78 °40. Marsellle 63 ‘3¢ Mex 4= astd 191 Milan 648 ‘52 8 Mo Pac g1 48 'T6... 9730 [Swiss 5% "4 Close. 50 46% 49 Bales. High 12 Low. 514 50 Mo Pac 5s A '65. Mo Pac 58 F 717, Mo Pac 85 G ‘78, Mo Pac 55 H ‘30, Mo Pac rf 5s Mo Pac5%s A 43, Mont Pow 68 '43. .. Mor&Co 1st 4 4 u'sy Nassau Elec 45 '51. Nat Dairy b1 s ‘48, Nat Ry M 4758 57 Nat Steel 68 ‘58 etherlands 6s ‘72, Eng T 1st 6362, OT&M5%s 54, YCgn3ys 97.. Y Cent4s'og. ... Y Cent 41482013 ¥ Crfim 582013 NY Tel4ya3.,, Nord 618 '60. No Am Co 6 §1. Nor Am Ed 6s C '69 Nor Pac 3« 2047, Nev Pac 48°07....,. Nor St Pw s A "41. Orfent dev 6363 Pac GAE bs ‘42, Pac T&T 18t 6 Paris-Ly M 6 Paris-Or 53 Penn 41,s D Penn 4% Penn 4% Penn 5a "t . Penn 65 ‘38 Penn P&L 4148 81, Pere Mar 4%s'80. . Pere M 1st 58 '58. . Peru 6s ‘80 Peru 6561 Phila Co bs Phiia Elec 48 Phil & Read 85 " Phillip Pet 5% P& W V48 C60. i Poland 78 47 . Poiand 83 ‘50 Port Gn El 4% Porto Alegre 85'61. Por R Am T 6842, Pos Tel & C 58'58. . Prague 7%s " Prussia §s s Public Serv 48 '71. Pub Sv G 4%8°87.. Pub SvG 4%a"70.. Pure O11 534837 Queensiand 6s 47, Queensiand s “¢1.. Rhinelbs 75 4§ Rnine West 68 '52. Rhine West 68 '63. Rhine West 65 55. . Rich Ofl Cal 68 "44. Rio de Jan 648 '53. R Gr Do Sul 65 '63. R Gr Do Sul 85 '48. Rome 6%8 '62. Roy D 4545 St L&SF in 48 A ‘80 5. StL&SF 4%s'78. StL&SF p | b8 B 'S0 StP&KC SL 4%5'41 Sao Paulo 8a 'S . 3 Saxon P W 6%8'51. 20 Saxon s '45. Seab A L 4s .. Seah A Lc 45, Serbs-Cr-S1 78 62, Serbs-Cr-Sl 83 '§2... Shinyetsu 6% s ‘62. Sinclair O11 6 % 8’38 Sinc O 7scv A '37.. Sine Cr O 5%s '38. Sine P L bs 42 Sou Bell T&T 6 Sou Pac col #8°49. . Sou Pac 4%s '68. .. Sou P 415869 ww. Sou Pac 4%s ‘81 Sou Ry &n ds 66, Sou Ry 58 94 Sou Ry 6348 ‘58 StOII N J 58 46. SLOIN ¥ 4% Sug Es Or 78 '42. 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HUGHES, Investors in foreign dollar bonds have sustained severe losses by the deprecia- tion in the market price of those se- curities during the past two years. In the aggregate the loss is not as large as that experienced by buyers of stocks but it is very severe. Looking back- ward it is easy to find plenty of rea- cons for this at the bect unfortunate and at the worst tragi~ cxperience. In the first place, 1oans were made in excessive amounts and for this the bankers were to blame. That is par- ticularly true of the credits extended | to South American countries. The only | danger signal the purchaser. might have heeded was the high coupon rate and the discount frem par at which the bonds were originaily offered, produc- ing an extremely high yleld. The urge to tecure a return ebove the average is 1 proved to be so in dual buyer of these high-yielding bonds that commercial bankers who ought to were to speculate in stocks. The only difference is that the bankers were as a rule better able to stand the losses. The second noint which, still in retro- | spect, might have caused the investor | to hesitate was the fact that so many | of these South American commitments | lacked diversification in that the na- | tions concerned relied to & large extent on the market for a single commodity, nitrate, copper, tin, wheat or whatnot. When, o5 a consequence of the world- w.de depression, these commodities de- clined to a price much under the cost of production, the money value of ex- ports fell off, gold supplies were de- pleted and the exchange necessary to provide payments on coupons and to meet seeking fund requirements could not be procured. The result was de- faults, In some instances moneys in the currency of the debtor were set acide until such time as they could be transferred. In others even this de- vice was abandoned. All this is a matter of record. It only remains to say that because a bond is in default it is not necessarily with- cut value, The holder still has a valid claim ogainst the issuer, a claim h~ is nct gble tp enforce at this tim* but which on some future occasion may be met in part if not in whole. (Copyright, 1981.) | have known better were just as eager to | £ speculate in bonds as their customers | 2% FINANCIAL WORLD INHOPEFUL MOOD Constructive Measures for Trade Improvemant in Pros- pect This Month. BY JOHN L. COOLEY, Associated Press Pimancial Writer. NEW YORK, January 2.—The con- servative forecasts on 1932 made by in- dustrial and financial leaders who cared to comment reflect the subdued hope- fulness with which Wall Street is fac- ing the new year Months ago the financial community learned the dangers of extravagant optimism. It enters another calendar period with a clearer conception of the troubles through which the world is passing and a conviction that courage rather than hysteria will be the better partner during the coming period January holds the prospect of sev- eral important developments. With Congress soon to reconvene, it is felt that work will be speeded toward push- 1ing President Hoover's reconstruction corporation plan to completion and that the country will soon get an idea of what is to be done toward meeting i{and reducing the deficit, either through | increased taxes, new bond issues, or + 1 both. al Rail Wages Issue. ! Also the railroad wage-cut issue I be decided this mm'n-he.e P‘lnnnciuln:);% | servers will be very much surprised if a voluntarily reduction is not ac- cepted eventually, although there is some difference of opinion as to how long the negotiations will take. In industrial flelds the first month of the year is expected to bring an expan- sion in steel and automobile produc- | tion, both of which proved so disap- T r;axh;ung during the closing weeks of Of wider interest is the rey | conference to held at g\:}l"l\“}’ These sessions are expected to confine deliberations to reparations. While both British and ench statesmen hva\'(‘ insisted that debts owed to the United States should be included, Con- gress has @efinttely removed that sub- ject from the toples for discussion. Despite disagreement in viewpoint among European nations, leading Amer- | ican bankers are hopeful that construc- tive results will develop. Several have expressed conviction that the Lausanne conference would bring about & work- able agreement on which the world could build & new prosperity. During January, several banks and other financial institutions will pave the way for upbuilding of their later condition statements by writing down assets to present market figures. This will apply to real estate and physical properties as well as to securitiss, In making meximum write-offs now, it is 'Efie‘i"bem&'?" be in excellent posi- 0 benefit from - in prices. e o ekt Larger Banks Strong. Conditicn of the larger banks - scribed as favorable tag ald in th‘: ;:. portant work of reconstruction. Lead- ing authoritiss state that the New York Cieering House members are in strong tiquid position. The same policy of keep.ng a large. proportion of assets in liquid 1orm has been followed generally throughout the country. A number of banks are still handicapped by the sharp decline in security prices last year, but some of these have been given assistance by the mew National Credit C?rpurat.on. Further measures of aid b}AW:‘y of providing means for thawing )c:\sz; gde but frozsn assets are now in spect. INVESTMENT TRUSTS NEW YORK, vanuary 2 (#).— EI?. 35 '3 5c 30 3 B C Tr Sirs BC1 G Fars 1/.0 G B et / om. Ins Btocks.., Stand Oil. c . X Cumulative Gerporate T N ™ .} o B 5 ity Invest | Bauity Tnvest pi Il Fauity Trust Shrs Five-Vear Fixed Tr Fized Trust Sh A. Fixsd Trust €h B Fund Tr Pund T Gude Winmill Trad Incorp Invesiors Treorp Invest Bauit Indeoend Tr Shrs.. Int Sec Corp Am A.. Int Bec Corp Am B!. Int Sec Am 67, pf Int Sec Am %ar it A Sh 1 e metpe s M e . s gawais S Inv T: N ¥ Co Tnvest °d Income € lecied Mansge Tri-t m Ti_Shrs Collat Trust . Stre-t Invest of Am Tr A.. Trust Trust Trustes Shrs of Am 3 se Stand Irv C.. Stand Iny D 8t Ol A * o1l 8hrg A Pized Shrs | Unit Pdrs 1-70 com United Ins Shrs Tr US Elec Lt & Universal £ Others unchanged. Income Tax Affects Health. That there would be a very consider- able addition to the number of patients suffering from gastric and duodenal ulcers during the next few months, owing to worry conmected with increase of incom~ ta= and the rigidity of the new regulaticns connected with it was nredicted by Jomie3 C. Thom®on, prosi- dent of the Societ¥ of British Naturo- ths, in an address in Edinburgh, recently.