Evening Star Newspaper, January 6, 1932, Page 15

Fi CURB SHARES RIE | STEADY MARKET Leading Issues Show Sub- stantial Gains After Higher Opening Prices. BY JOHN A. CRONE. 4a] Dispatch to The Star. NEW YORK, January 6.—The Curo xchange opened higher today as a re- ult of a number of favorable news evelopments, and maintained the up- vard trend as trading increased in peed Electric Bond & Share within two ows gained almost 2 points. Brazil- an Traction was up more than a point t thmes. Cities Service was up frac ionally, as was Standard Oil of In- Hiana. g Developments which influenced initial rading trends today included the indi- ation given by two of the largest banks, one here and one in the West, that intended to liquidate no nore se- ties near current low levels and the gpeeding up of the emergency finance ration bill in Washington. eign shares opened strong, fol- owing the firm tone of the London and Paris markets. Some covering from the atter center was due to a rumor which ould not be confirmed here, that with- the next few days word might come rom Paris through Washington to the ffect that the French would make a hew reparations proposal to Germany. [Neither French nor German bankers ere professed to know about this ro- posal, but they indicated that the Eu- opean situation has ciearcd up some the last two days, Brazilian Traction at 9% showed an overnight advance of 13 points. Wool- fworth Ltd. was up a small fraction at 8%. Ford Motor Ltd. was firm. Im- 1 Oil and International Petroleum e improved. Grain Market By the Associated Press. CHICAGO, January 6.—Fresh up- turns in grain prices early today ac- lcompanied reports of big purchases of ICanadian wheat for China and Europe. An fmproved tone in Wall Street secur- ities was also a bullish factor. Opening 33 to 3; higher, wheat after- 'ward held near the initial range. Corn, too, started with 3g to % advance, and continued firm. Cuwrrent advices were that 2,000,000 bushels of Canadian wheat had been bought for shipment to China and 1,000,000 bushels more taken by Europe. ‘There were also predictions that Eurc- pean continental countries would soon Tequire additional foreign wheat. Price gal which went along with these de- velopments and with New York stock market bulges were checked at least | temporarily by increased selling, but ‘the market at this stage displayed little tendency to react Official announcement that in parts of the Ohio Valley the Winter wheat crop was in poor condition to with- stand a hard freeze served more or less to uphold wheat values at about 1 cent over yesterday's close. Continued gen- eral strength of securities was even more influencial as an incentive to| Wwheat buyers. Attention was also| drawn to advices indicating extensive ! decrease of use of fertilizers on do- mestic farms. Rough weather prevail- | ing over parts of the corn belt and likely to hinder crop movement gave independent firmness to corn and oats. Provisions were steadied by upturns of hog values. Bread prices in Dublin, Irish Free Siate, are climbing. a5 & As GKE 5'as ‘38 Asso G & E Asso T & T 5lus 3'As Tel Util 5! A 55 Bell Tel Can 5s B 57 Bell Te) Can & ¢80 Can Nat Ry #l4s 156 §Cent 1l P § 55 G '68 28 3 A 55 44.C 5 16, Is 154 55 2021 A 52 s 50 66 10 Chic_Ry cod o §in 8t Car 51 Cities Service 5 § Cities Service 55 Cit' Se. FEFE 2NRIR! 238222 ~awgss, saeneseEae .58 ] Fisk Rub 5125 ‘31 2 Florids P & L s '54 70 | Gatineau Py 56 6: fid W v 6 | i ‘ - 9 i { & 591 st < 1000 79 | 83 | 8 H | 86| South Call 55 31 South Calif Ed 55 ‘32 Southern N G_6i Southw G& Tex Dt iscon P&L 5 E FOREIG Buen Air Pr Wi w ADBRES2EE s Ww—With warrants AW Without warrants. Wi When tasued. NCIA NEW Stocks sold in 100-share lots except those designated by letter “s.” Sales— Add 00. Open. High. Low. Close. a Stock and Dividend Rate. Agfa Ansco. .. Ala Pow pt (6). Ala Pow cum pf (7). 20s Allfed Mills Inc..... 1 Aluminum Co of Am 2700s Alu Co of Am pf (6). Am Austin Car. AmCitPw&LtB Am Com Pow A.. Am Com Pow B. Am Cyanamid B Am Equities. . : Am For POw war.... Am Founders....... Am Gas & Elec (11). Am Invest Inc (B).. Am Laundry Mch(2) Am Lt & Trac (234). Am Lt & Trpf (1%). Am Mfg Co pt (5)... Am Maracaibo Am Superpow: Am Thread pf (25c). Am Utl & Gn B vtc, Anchor Post Fence. . Apralachian Gas. ... Arkans Nat Gas A... Ark N G cu pf (60c). Armstrong Cork, ... Assoc Elec Ind (30c) Ass50G&EI (A) b5%. 850 G & El ct (8) Atlas Ut) Corp..... Atlas Utilities war.. Blue Ridge Corp.... Blue Ridge cv pf(a3) Brazil Trac Lt&P(1) Buff N&EP pf (1.60) Butler Bros. ... Canadian Marconi Carnation Co (J1%). Carnegle Metals. ... Celanese Corp 1st pf. Celanese pf (7) Cent Pub Sve A h5%. Central States Elec. . Chain Stores Stock. . Chi BEQ R R (10)... Cities Service (g30¢) Cities Serv pf (6)... Col Of1& Gas vte. .. Commwlth Edison (8 Cmwlth & Sou war.. Consol Auto Merch. . Con Gas Balto (3.60) Cord Corp. Corroon & Rey 5 Corroon&Rey pf(A). Creole Petroleum. Cresson Consol. Crocker Wheeler.. .. Cumberland P L (2). 50 Darby Petroleum Dayton Air & Eng... Deere & Co. . R: 1~ P . 10s 63 Durant Motors. East Sta Pow (B). Edison El Bos 13.60. Elsler Electric. 5 Elec Bond&sSh( Elec B & Shcu pf 5.. Elec B & Sh pf (6)... Elec Pow Assoc A (1) Elec P & Lt op war. . El Shareholdg(b§%) Elec Sharhldg pf (a6) Emp G & F cu pf(7). 100 Europ E Ltd A (60c) 2 Ford Motor. Can.. A. Ford Mot Ltd 36 3-50 Foremost Dairy pf. Fox L'heater (A) Gen Aviation. . Gen G&E cv pf E Gen Theat Eq cv pf. Glen Alden Coal (4). Globe Underwrit 40c. Goldman Sachs 3 Goth Knitback Mch. Grand Rapids Vr 50¢ Grt A&P Tean v (6). 301 Great Nor Paper (3) . Groc Strs Prod vtc. . Guif Oil of Penna. Hackmester Lind Hollinger Gold 170c. Horn & Hard (2%). . Hudson Bay M & S.. Humble Oil (12).. Hygrade Food Prod. 111 Péw & Lt pt (6).. Imp O1l of Can (50c) Imp O Can reg (50¢). Insull Inv (b6%). .. ins Co ofNo Am 12% Insurance Security.. Intercontinent Pet Int Petroleum (1). Int Utilities B Irving Afr Ch ( Leh Co & Na (1.20) Lone Star Gas n 88c. Long Island Lt (60c) Long Iscu pf B(6).. Long Isld Lt pf (7).. 258 Mavis Bottling (A).. 8 1% Michigan Gas&Oll.. 4 90 21 80 87 4% s 63 THE EVENING STAR, WASHINGTON, D. C., YORK CURB EXCHANGE Received by Private Wire Direct 2 38 3 New J Rox U) Ui Util & Wal Wal Wayne Pump. Wenden Copper Western T & S. Woolwth Ltd 17 4-5¢ Youkon Gold Com Edison. Dividend rates in ment. & Payable in cash or fplus 5% in stock. in stock. nPlus 8% in stock. dividend 1 Plus 2% Nat Pow & Lt pf (6 Nat Rubber Mach. Nat Service Co...... Nat Sh T Sec A 160c. Nat Sugar NJ (2). Nat Transit (1)... New Bradford Oil. New Eng Pow pt (6). 10s New Mex & Ar Land. 1 Newmont Mining N'Y Shipbuilding Cp. N Y Tel pf (6%).... Niag-Hud Pow (40c) Niag-Hud Pow A w.. Niag Share(Md) 20¢. Niles-Bemt-Pond (1) Nipissing. . Nor St Pow A (3). 3 Nor St Pow pt (6)... 60s Ohio Copper-. .. Outboard Mot A...... PacG&E 1stpf1%. Pan Am Alrways Pantepec Oll........ Parker Rust Prf (3).150s Pennroad Corp (40c) Penn Wat & Pow (3) Philip Morris Inc Pilot Rad TubeA.... Pion G M Ltd (12¢).. Pitney Bowes (b4 %) Pittsbgh Plate G (2) Pratt & Lambert (3) Premier Gold (12¢).. Prudential Invest. .. Pub Sve,N Il n p(8) . Pub Utll Hold war.. Pub Util Hold xw Radlo Products Reiter-Foster Reliable Store Reliance Int A.... Republic Gas Corp. . Reybarn Co . Reynolds In Roan Antelope Min. . velt Fleld Inc. Rossia Intl Corp. . St Regls Paper. Selecied Industries. . Sle Ind al ctfs(5%).. Slet Ind prior (5% ) Shenandoah Corp... Sherwin-Williams (4) Stinger Mfg (8). Smith (A. 0.) So Am Gold & Plat. SoCalEdpfA (1%). Sou Cal Ed pf C(1%) Southld Royalty 20c. SWG&EDpt (T) Spanish & Gen rcts 4 Stand Ot of I Stand O1f) of Ky 1.60. Stand Oil Nebr (2).. Starrett Corp pf Stutz Motor Car. Sunray Oil.... Swift & Co (2). Switt Internat’l (14) Syracuse W Mach B. Tampa Electric (32). Technicolor Inc. . Tech Hughes (60c).. Tob Prod of Del wi Trans Air Trans. Trans Lux DL P 8. Tri-Cont Corp war. Tri-Utilities. Tubize Chatel. B.... Union Of1 Assoc (2). t Corp war. it Elec Service Unit Founders. Unit Gas Corp. Unit Gas Corp war. Unit Lt & Pw A (1) Unit L & Pwr p£(§) U S Elec Pow ww... U S Inter Sec 1st pf. U S Playing Card 2% 2255 Util Po & Lt (b10%) Ut P&L(B)cfs b10% Util Pwr & Lt pf(7). Ina Utility & Ind pf(1%) green Co. .. “Ex dividend. to The Star Office. Stock and Dividend Rate. Mid Sta Pet vtc § Mid West Ut (b8%). Mo-Kan Pipe Line. .. Mo-Kan Pipe L (B).. Mountain Prod (80¢). Nat American Co.... Nat Bd & 8 Corp (1). Nat Fuel Gas (1) Nat Investors. Zine (13) 3.750, 2 1 5 1 2 25 (A).. (1. 15 1 50s 1 1 0 5 1 6 1 3 1 RIGHTS—EXPIRE — 21 based on quarterly Partly extra. IPlus 4% in stock. bPayable in stock. e Adjustment € Plus 6% in stock. hPlus 1% in k Plus 10% in stock. m Plus 3% in P Pald last year—no regular rate. 1 14 doll ock. BANK STOCK PRICES OFF DURING 1331 Comparisons Show Advances Late in Year of New York Issues. Special Dispatch to The Star. NEW YORK, January 6—During most of 1931 New York City bank and trust company stocks sympathetically followed the general declining trend, according ‘o0 a survey of the 1931 bank- stock market prepared by Hoit, Rose & Troster, bank-stock specialists. How- ever, in responding to influences es- pecially affecting bank shares, such as the higher money rates and construc- tive banking news from Washingtc bank stocks led the general market in several important rallies On October 6 news of formation of the National Credit Corporation stimu- lated an advance in bank stocks which by the end of that week, October 10, netted an average advance of 28 per cent. Later in October bank stocks ex- tended their gains on the higher money rates. From October 5 to November § bank stocks scored an average advance of 43 per cent On December 18 news from Washing- ton that American banks are not “load- ed up” with German short-term credits | 1 started a rally in bank stocks that by December 19 totaled on the average 23 per _cent. The year closed with several bank stocks well above the December 17 lows. First National showed a net gain of 330 points, Central Hanover, 20; Guaranty Trust, 17; Bankers' Trust, 12',. Other to close higher were Commercial Manhattan, Empire Trust, wange, Chase, City and New Close Dec oSS S I = SRESTBSUARE atgeeEs Welghted average 93 1l 51 Decline. February 21 to December 17. 61% Recovery. December 17 to December 31, Gain in Rubber Trade. NEW YORK, January 6 (#).—The 1931 gain in rubber consumption and sales in several branches of the indus- try give some cause for expecting a turn in the industry. says a special sur- vey compiled by Dun. It is the general opinion that demand must appesr early in the year and bring with it some strengthening of the price strugture. 3 Bond Holdings BY GEORGE T. HUGHES. It is just as important to keep one’s head in a bear market as it is in a bull market and even more difficult. The spectacle of constantly declining prices | gets on the nerves of all but the ex- | tremely small minority. This academic ‘slalemenb is true notwithstanding the | fact that up to now during the present | bear market practically every one who |allowed himself to be influenced by | prices rather than values has a profit. Almost any kind of a security sold during the last two years looks well sold today and yet two and a half years ago almost any kind of a security bought prior to that time looked well ought. We all know the sequel. Soon- er or later there comes a time in any r et when the favorable or the un- oralle as the case may be has been scounted In attempting to recognize this point it is important to bear in mind the dif- t conditions under which trading is icted in the bond and in the stock cts. Whatever may be the eco- c or ethical status of short selling not be denied that the relatively 1 stability in the share market that in the market for fixed in- terest bearing obligations has been due to the existence in the former of a short rest Bonds are sold short at times but such transactions are comparatively rare. Bond prices respond directly to lll’.;e(sv?wm supply and demand. It fol- voluntary, panicky or deliberate, comes 0 bonds the decline is more severe it would have been under the conditions in stocks. true that one must not judge | values by prices than that he not fall into that error with stocks. — Dividends on stocks may be omitted at the discretion of the direc- d the corporation continue solv- yments on funded debt must © or bankruptcy confessed. More- the event of receivership it is holder whose interests arelooked t and the stockholder who t is left if anything. It is for a corporation to go into re- for the courts to direct pa be continued on some of depending on their priority of | matters should be taken he ideration before _sacrificing | bond holdings because of a break in market price (Copyright, AUTO SALES IN ISLANDS REPORTED ON INCREASE | BY the Associated Press. ‘!h-eng Testricted automobile market of | by Ameiry Islands, which is dominated | ¥ finerican products, is flourishing. | Comard quarter sales, a dispatch to the 2 "L‘lm‘"f’fv Department says, showed a e:xrlu Nuation of the gains established in arlier periods. A total of 180 motors t“hfl’e Placed in operation during the hree months, as compared with 95 for the same period the year previous. | It is estimated that 95 per cent of | the cars sold in the islands are made in the United gtates. 1932) hat when liquidation, forced or | It is even | |ing at 5.50a7.00; yearlings and light | 1,300 pounds, | and choice, 550-850 pounds, 6. | good and choice, 4.25a5.50; common an CHASE NATIONAL BANK SHOWS HUGE RESOURCES Special Dispatch to The Star NEW YORK, January 6.—The state- ment of the Chase National Bank, as of December 31, showed total resources of $1,988,669,000. The combined eapital, surplus and undivided profits were $291,075,000, the capital alone as heretofore being $148,000,000. Cash in the bank’s vaults, Federal Reserve Bank and other banks was $333,571,000. Investments in United States Gov- ernment securities were $162,946,000. | State, municipal, other securities and stock in Federal Reserve Bank were $165,155,000. Loans and discounts amounted to $1,154,633,000. The gtal deposits were $1,459,114,000. In the bank's report it was shown that in accordance with their customary policy of conservatism the directors had transferred $24,000,000 from the bank's surplus to its reserve for contingencies. CHICAGO LIVE STOCK MARKET CHICAGO, January 6 (#) (United States Department of Agriculture).— Hogs—Receipts, 30,000 head, including 7,000 head direct; active, 5-15 higher; | heavies up most; 140-210 pounds, 4.25a 4.35; top, 4.40; 220-280 pounds, 4.00a 4.30; pigs, 4.00a4.35; packing sows, 3.30a 3.40; smooth sorts to 3.60. Light light, good and choice 140-160 pounds, 4.25a 4.40; light weight 160-200 pounds, 4.25a 4.40; medium weight 200-250 pounds, 4.0524.40; heavy weight 250-350 pounds, 3.85a4.15; packing sows, medium and good 275-500 pounds, 3.25a3.60: pigs, good and choice 100-130 pounds, 4,00a4.40. Cattle—11,000 head; calves, 2,000; active on all grades and classes except- ing medium grade, weighty steers, sell- steers, including light yearling heifers, 25 or more higher; she stock sharing advance; top steers, 10.65. Slaughter cattle apd vealers—Steers, good and choice, 600-800 pounds, 7.75a11.50; 900- | 1,100 pounds, 17.75a11.50; 1.100-1,300 pounds, 7.25a11.25; 1,300-1,500 pounds, | 7.25a11,25; common and medium, 600- 4.25a7.25; heifers, good | a8.50; | common and medium, 3.7586.25; co s medium, 3.00a4.25; low cutter and cut- ter, 2.00a3.00; bulls (yearlings exclud- ed) good and choice (beef), 4.2584.75; cutter to medium, 3.00a4.40; vealers (milk fed), good and choice, 6.00a8.00; medium, 5.00a6.00; cull’ and common 3.00a5.00. Stocker and feeder cattle: Steers, good and choice, 500-1,050 pounds, 5.0026.00; common and medi- um, 3.2525.00. Sheep—Receipts, 18,000 head; steady, with lower tendency; strictly choice na- tive lambs, 6.75; others grading good, 6.00a6.25 to packers: choice, 85-pound yearlings, 5,00, Lambs, 90 pounds down, good and cholce, 6.00a6.75; medium, 5.0026.00; all weights, common, 4.00a 5.00; ewes, 90-150 pounds, medium to choice, 2.00a3.25; all weights, cull and common, 1.50a2.50; feeding lambs. 50-75 pounds, good and choice, 4.50a5.00. e Archery is still an honored pastime archery teams use are rs old, having been handed down rom generation to generation. - WEDNESDAY PRODUCE MARKETS HAVE BETTER TONE No Special Weakness Noted Except in Butter and Egg Prices. The whole list of farm products made a brighter market picture the first of the year, says the United States Department of Agriculture, Bureau of Agricultural Economics, Market News Service. Aside from.recent sharp de- clines in the butter market and the slowly downward tendency .of egg val- ues as usual at this season, there was little sign of special weakness in the produce markets at the beginning of the month. Grain trading indicated a more hopeful tone, with small price up- swings and rather more confidence in the situation. Millfeeds are selling slowly and some kinds are lower be- cause of the slack demand. Live stock reflected a moderate supply and ad- vanced a little. Poultry receipts are decreasing, but storage holdings still keep the market down. Fruits and vegetables showed a generally slightly upward tendency on such leading kflxds as potatoes, onions, cabbage and apples. Potato Market Higher. Under the light shipments and rela- tively small holdings in city markets, prices of potatoes were advancing near the first of the year at most shipping points. The Green Mountain vari- eties strengthened in Northern Maine to 45 to 48 cents per 100 pounds, which brings the level close to high points of recent weeks. North Cen- | tral States reported most sales at 59 to 65 cents. Chicago carlot market was stronger on Northern Round Whites and on sales of potatoes for | future delivery. Sweet potatoes from Virginia and Louisiana were jobbing in consuming centers at a slightly higher level, but arrivals from most other States were either steady or somewhat weaker. Trend of the sweet potato market has been slightly upward for about a month. Onion markets are steady to firm, with price advances in some shipping areas. Western New York yellows ad- vanced above $2 per 50 pounds on some sales and shippers in Southwest- ern Michigan sold at $1.80 to $1.90. Most sales of cabbage were on a higher price level than' in late December. Bulk Danish type returned $14 to $15 per ton at Western New York shipping points, prices held firmly in Wiscon- sin and advanced on ton basis in Southern Texas. Celery of only fair quality and condition brought $1.45 per two-thirds crate in Eastern producing sections. Michigan celery tended high- er. Letiuce markets were unsettled. Prices are lower at loading stations in the West, but city markets quoted ad- vancing prices. Texas spinach and Western cauliflower declined in pro- ducing sections. Butter Market Breaks. The butter markets developed con- siderable weakness near the first of the year and prices broke sharply at all polnts. The undertone was nervous and trading lacked snap. Declines were mostly from 1 to 3 cents. The market was still nervous and unsettled after the decline because of a fear of the usual declining _tendency of January, to- gether with liberal receipts and increas- ing_production. Cheese markets show little change in price. The main cause of uneasiness is the lower price range in Canada and England, which brings the situation nearer to an import basls. Egg Trend Downward. ‘The recent trend in egg prices has centinued downward. Even the slight seasonal improvement in demand before the first of the year gave only temporary steadiness to the markets. Quotations on nearby Eastern offerings declined 1 to 2 cents on the upper grades and 2 to 5 cents on mixed colors from the West. Stocks in cold storage are still large for this time of year and the ten- dency throughout the market is to keep stocks moving into retail channels as rapidly as possible. Retail prices of turkeys at Christmas and later were lower than at Thanks- giving, even though farm prices were higher. A considerable carry-over in supplies was reported for practically all of the larger markets. Other poultry also is in light demand at slightly de- clining prices and there is a consider- able surplus for storage. Livestock Slightly Higher. Prices on most classes and grades of livestock opened the new year on a basis materially higher than the mid- December low spot and with a much healthier undertone prevalent., This condition, while it may have been due mainly to the much smaller marketings during the holiday period, nevertheless brought new cheerfulness. Prices of slaughter cattle were strong to higher. In the hog trade weights above 160 pounds declined moderately, though still holding a firm advance over the De- cember low spot. Light hogs weighing below 160 pounds advanced slightly. The lamb market fluctuated sharply but started the year in a burst of actifity that left values fully steady to a shade higher compared with the week before and fully 25 to 50 cents above prices | current at the low time in December. Receipts of live stock at leading mar- ket centers, while expanding sharply over light Christmas week marketings, were lighter than the weekly market- ings early in December. Twelve import+ ant market centers showed increases in the aggregate as compared with the Christmas week supply. Prices in the Boston wool market were steady to firm at the beginning of the year. While trading was slow, the inquiries were numerous enough to aid the hopeful attitude toward prospects for business the first part of the year. Sample lots for testing were taken from slzable offerings and reports indicated conditions in the goods markets slightly better than a month ago. Grain Fairly Steady. The grain markets began the year in fairly steady position. Prices on most classes of wheat are sharply lower than a year ago, but well above the low point reached in early October. Feed grain markets present a situation slightly dif- ferent from that which prevailed during the past year on bread grains. Prices have been unusually low, but supply conditions differ materially from thase of last season, and a slow demand for commercial feeds and corn products re- duced the market for corn so much that the price tendency was weak through most Jf the year and the trend was downward along with wheat. At Chi- cago No. 3 yellow corn was selling near the end of the year at 36!, cents to 38 cents, compared with 62 to 64 cents a year ago. Prices of oats were prac- tically the same as a year ago in Min- neapolis, but were 6 to 7 cents lower than a year ago at Chicago and Kansas City. These variations in prices reflect changed distribution of supplies, While the rye market has been weak through- out the year, prices at the end of De- cember were 7 to 8 cents above those of & year ago. Feeds in Light Supply. Light supplies of millfeeds were in slow demand early in the year and prices were about unchanged in the more Northern markets, slightly lower at Central Western and Southern points and about unchanged on the Pacific Coast. Depressed conditions in the live stock, poultry and dairy trade, to- gether with the mild weather which permitted much outside feeding, were important weakening influences. Plant Resumes Operations. NEW YORK, January 6 UP) Laughlin plant of the American Sheet & Plate Co. has resumed opera- tlons in 16 units. It is a subsidiary of the United States Steel Corporation. ANUARY 6, 1932 STOCK AND BOND AVERAGES FINANCIA l By the Associated Press. From Yesterday' s 5:30 Edition. STOCKS. years ago. High. 1931-32. Low, 1931-32 BONDS. 20 Industrials. 65.0 Previous day Week ago. Month ago Year ago. .. Two years ago. Three years ago. High, 1931-32. Low, 1931-32 (Copyright, 195: Everybody’s Business A Franco:German Agree- ment on Reparations Would Hasten Solution of Whole War Debt Problem. BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, January 6.—News from Europe is somewhat more encouraging. A Franco-German agreement in regard to the reparations question is com- fidently expected. Whether a final so- lution will be reached is as yet dif- ficult to state. Suffice it to say that the various powers involved are almost unanimous in regarding the intergov- ernmental debt problem as one of the chief obstacles to a genuine and last- ing revival of business. From other parts of the world news is less cheerful. Difficulties in Japan, renewal of troubles in India, attempts to stage a new revolt in Argentina and complications in Honduras are not es- pecially conducive to optimism. The effects of these events upon world economic conditions are not quite so significant as those on the old Continent, to which the United States is much more closely bound, eco- nomically and financially. Although there may be some more selling of Far Eastern and Latin American issues, the securities market as a whole is not likely to be affected to any appreciable extent. New Finance Corporation. Further progress is reported in con- nection with the recently proposed Reconstruction Finance Corporation. Capitalization is fixed at $2,000,000,000 to be obtained through the sale of debentures. In the event that the latter should prove unsalable, the United States Treasury will buy them from the Finance Corporation and issue its own bonds for that purpose. Regardless of the method of financ- ing, the enterprise ought to be launched at once. The time has come to stop fiddling and get the measure passed, according to Silas Strawn, president of the United States Chamber of Com- merce, who regards the creation of the corporation as the major need of the country at this time. Stock Written Down. The man in the street, that is, the average American was enticed by the tremendous profits which Wall Street had held out and who now discovers that not all is gold that glitters, should have grounds for consolation. The powerful Continental Illinois Bank & Trust Co., whose destinies are guided by Arthur Reynolds, one of the coun- try’s most competent bankers, finds it necessary to write down 1,000,000 shares of the Continental Illinois com- pany to $1—these shares were originally purchased at a cost of $15,000,000. Such a step, Mr. Reynolds points out, was deemed advisable in view of the de- cline in the market value of securities. Sees Better Sentiment. F. E. Willlamson, the new head of the New York Central, directs attention to the rather gratifying fact that the road, or its predecessors, has been paying dividends without a break for 62 con- secutive years, from 1870 to 1931, both inclusive. The period included the panics of 1873, 1893 and 1921, and the present depression, each followed by slow recovery. The disbursement for the entire period averaged 5.8 per cent per anaum. Mr. Williamson does not as yet see any change in traffic trend, but he does note a better underlying sentiment. He concludes his observations by express- ing the hope that the 10 per cent vol- untary wage cut negotiations will be concluded successfully. Dividend Reduction. Declaration by Atchison, Topeka & Santa Fe of $1.50 for the quarter, as compared with $2.50 paid previously, was not surprising. In view of the de- cline in earnings a reduction was gener- ally looked for. Commenting upon the budget for the current year, W. B. Storey, president, points out that it will amount to $25,- 000,000, which represents a carryover of $15,000,000 for 1931 and $10,000,000 set aside for 1932. Of the 1932 figures, $6,000,000 is accounted for by new lines and $4,000,000 for new work on existing lines. Belgian Bonds. With a gold cover of 67 per cent, ru- mors regarding the possible abandon- ment of the gold standard by Belgium are entirely groundless. It is also worth bearing in mind that the kingdom has no important credits tied up in Ger- many, Russia or Central and South- eastern Europe, except for purely trade credits. These, according to an official of the National Bank of Belgium, are fully balanced by similar credits on for- eign sales in Belgium. In any event it is difficult to account for the recession in the price of Belgian issues listed on the New York Stock Exchange, because they are all payable in United States gold currency of the weight and fineness obtaining at the time of flotation. Government Economy. Every one is economizing today, even governments. Poland, for instance, will cut expenditures for the current year (1932-33) from 2,886,200,000 zloty, bud- geted for the past year, to 2,452,400,000. a decline of more than 14 per cent. Revenue is expected to amount to 2,- 375,000, as compared with 2,890,500,000, a loss of close to 18 per cent. An anticipated surplus for the past fiscal year of 4,300,000 zloty turned into 8 deficit of 77,400,000 zloty, equivalent to about $9,000,000. If Pdland could see her way clear to spend less on armament, there would be reasons for expecting a budget surplus or at least equilibrium. In this, howevér, Poland does not stand alone. (Copyrisht, North Ne: 12, by the aper Alliance, Inc. INDIANA BANK CLOSED. GARY, Ind, January 6 (#).—The First National Bank of Gary was closed yesterday for reorganization. It was indicated that the bank might be able to_reopen within a week. Its latest statement showed resources of $4,800,000; deposits, $2,900,000; cash, $300,000. The Gary State Bank is the only banking institution remaining open here. * ) American Standard Statistics Co.) Total. 60.0° 60.1 63.2 1 1265 195. 97.3 106.0 100.8 INCREASE N AUTO OUTPUT REPORTED Four Factories Have Stepped, Up Production in Re- , cent Weeks. 4 By the Assoclated Press. DETROIT, January 6—Four auto- mobile factories which recently went into new car production, today re- ported increased output, compared to last year and two months ago. The Buick Motor Co. reported its December production totaled 11,629 units, against 9,053 in November. Studebaker Corporation ug:md that sales totaled 6,237 units during Decem- ber. This included Studebaker cars and trucks, Pierce-Arrow and Rockne cars. Officials said the turnover was double that of last year. Graham-Paige re‘roned its output of new eight-cylinder cars was the lal’tsm December production since 1925. Shipments for the Hupp Motor Car Corporation for December Wwere 1,044 cars, compared with 248 in November. Shopmen Re-employed. NEW YORK, January 6 (#).—The St. Louis-Southwestern Railway has re- employed 325 shop workers who were laid off in December. CORPORATION REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS. NEW YORK, January 6.—The fol- lowing is a summary of important cor- poration news prepared by the Stand- ard Statistics Co., Inc, New York, for the Associated Press. News Trend. Crude oil production again declined, the daily average dropping 83,800 bar- rels in the week ended January 2 to 2,209,100 barrels, according to the American Petroleum Institute. The major decreases were a 25,100-barrel curtailment in East Texas output and a 41,650-barrel cut in Oklahoma output. Gasoline stocks at refineries amounted to 37,989,000 barrels, an increase of 790,000 barrels over the previous week. Revenue freight car loadings in the week ended December 26 totaled 441,589 cars, according to the American Rail- way Association. This is a reduction of 140,144 cars below the previous week, due to the OChristmas holidays, and 94,703 cars under the corresponding | week of last year. Loadings of all commodities were smaller. The Companies. American Smelting & Refining, 1213 cents common dividend: paid 37%; cents three months ago and 55 cents quar- terly theretofore. Atchison, Topeka & Santa Fe Rail- way—Declared $1.50 common dividend: formerly paid $2.50 quarterly; 1932 budget, with $15,000,000 carryover from 1931, about $25,000,000. Celotex Co.—Deflcit, year ended Oc- tober 31, $130,599 vs. net income $244,- 079, equal to $4.58 a $7 preferred share. General Motors—December shipments of Oldsmobiles about 2,000 units. Grant (W. T.) Co—December sales up tz.s per cent; 12 months up 5.9 per cent. Keith (George E.) Co—Consolidated sales for year ended October 31, 1931, off 21.9 per cent. Standard Ofl of California—Justice Department asks $30,000 additional funds to continue prosecution of dis-, pute with company over title to section of Elk Hills oil lands. Standard Oll (New Jersey) —Purchase price for stock of company for employes fixed at 3015, Alaska Juneau Gold Mining—Decem- ber profit before depreciation, depletion and Federal taxes, $77,200; 12 months, $1,521,550. Chicago, Rock Island & Pacific Rail- road—Supreme Court annulment of grain rate reduction to aid road; lower rates would have cut revenue about $1.750,000 annually. St. Louis-San Francisco Railroad to benefit from Supreme Court annulment of grain rate reduction Solvay American Investment -de- slnr;d $1.37%% quarterly preferred. divi- end. United Light & Power reported to hold option on Missouri-Kansas Pipe A—15 RULES ON TRUSTS HELD BENEFICIAL Growth of Investment Units Strengthened, J. S. Myers Believes. k. FHRX BY JOHN SHERMAN MYERS, Vice President and General Counsel. tributors Group. Inc. It 1s estimated that investors in the United States have bought—Ilargely in the last three years—approximately 60,000,000 “fixed” or unit-type trust shares. This is an amazing total. Cer- tainly it would have seemed so to earlier sponsors of fixed trusts who never visualized so great a public ap- preciation of a comparatively new in- vestment vehicle Some other facts which are, I believe, approximately correct are interesting, however. In 1924 one fixed trust was launched. In 1925 two more appeared. In 1926 none was offered. In 1927 a fresh interest was evidenced in this medium for diversified common-stock investment and new fixed trusts num- bered eight. But it is the next four years which are statistically significant, In 1928 there were 12 new offerings, in 1929 23, in 1930 68 (more than had been offered in the preceding six years) and in 1931 34. The best figures I can obtain indicate that of 148 trusts 99 are still active, and of these 48 have been found unobjectionable by the Stock-list Committee of the New York Stock Ex- chafige for association by member firms, Seven Large Fixed Trusts. It should be recognized, too, that while all sorts of small organizations undertook the formation of fixed trusts only scven ever distributed as many as 1,000,000 shares. The largest, North American Trust Shares, has passed the 21,000,000 mark. It was assumed by the uninitiated that the creation and distribution of fixed-trust shares was a highly profit- able undertaking, and there was a rush of sponsor: ially in 1930, when the public was looking for the safe- guards provided by diversification and found the conservative investment policy embodied in the fixed trust at- tractive. To most, these hopes of hand- some profits proved a delusion. It was soon discovered that the sponsorship and distribution of fixed trust shares could not be carried on with adequate profit and with proper management ex- cept on a large volume basis. I believe, for example, that records will show that one of the largest and most substantial depositor corporations has made, during 1930, a net profit of less than 1 per cent. Regulation Called Beneficial. This misconception of profits and the accompanying mushroom growth of fixed trusts had one fortunate effect. It turned the attention of quasi-regu- latory bodies to the fixed trust. Un- questionably the effects of such regu- lation have been beneficial. Most im- portant of these examinations was that by the New York Stock Exchange which culminated in the issuance of certain requirements on May 20, 1931. Tre action of the exchange has standardized many features of the fixed trust, such as the method of describing them, the method of pricing and the statements of charges. It has regulated certain methods of sales presentation and advertising. Generally it has strengthened the growth along sounder lines, with particular emphasis upon complete disclosure, in standardized terms, of the “inner workings,” so en- , abling the investor to judge the issue on its merits without necessity of pains- taking research. While the stock ex- change action was directed solely to & determination of what trusts were un- objectionable for association by mem- ber firms in their organization or in the sale of their securities, and in no sense an attempt to enforce regulations uj an enterprise outside of its jurisdiction, such regulatory action was eagerly ac- cepted by the leading trusts and rec- ognized by them as a means of main- taining sound practices. Two Methods Used. By the Fall of 1931 the fixed trust had thus become a recognized means of investment in common stocks, widely accepted by the public. The foundation had thus been laid for further and more significant development. By the end of 1931 it became apparent that such development was progressing along two lines. These are: 1. The increasing tendency to adopt a more flexible policy with regard to elimination of stocks which are no longer deemed of sufficiently high in- vestment quality—decisions based on economic research. There has been no change in the exclusion of the power to substitute. 2. The establishment of a most im- portant precedent inwthe trust agree- ment of two trusts—North American Trust Shares, 1955 and 1956—in which the trustee specifically undertakes to serve for the full intended life of the trusts and in which trustee’s continuing fees and expenses are fully provided for in advance. The significance of this second de- velopment is, I believe, of historic importance. In the past, due to the newness of the fixed trust and lack of any precedents on which a great bank chosen to act as trustee might deter- mine what obligations it could reason- ably assume, the duties of the trustee were largely those of a depository. The relatively few functions it was willing to assume it could relinquish at any time by resigning. In one or two in- stances where the trustee did not spe- cifically reserve the right to resign for any reason, the subject was not men- tioned in the trust agreement. In these new trust agreements, however, the trustee agrees specifically that it will not resign. Further, the trustee can- not be removed. And finally, the trust cannot be terminated prior to its matu- rlt% for any reason. he principal cause for resignation, in all probability, is that the trustee would decide it was unprofitable to continue to serve. If such were the case, finding a substitute trustee would be difficult, if not impossible. If im- possible, the trust must be prematurely liquidated and the funds returned to the investor. Forced liquidation, while Dis- Line assets. United States Steel—Sixteen mills at Laughlin plant of American Sheet & Tin Plate, subsidiary, have resumed op- erations. Pennsylvania Railroad—New Jersey Public Utllity Commission favors merg- er of South Jersey lines; estimate com- binatlon would reduce operating ex- penses by about $1,700,000 annually and cut capital requirements about $8.000,000. Tobacco, products declared 15 cents extra and 20 cents quarterly class A dividends. United Cigar Stores of America de- clared $1 preferred dividend; formerly paid $1.50 quarterly. Cluett, Peabody & Co. declared 50 cents quarterly common dividend; paid 75 _cents November 2. Hartman Corporation December sales up 5.8 per cent. New Britain Machine declared 10 cents quarterly common dividend; for- merly paid 20 cents. Spalding (A. G.) & Broé. deficit, year ended October 31, $1,011,267, vs. net income $1,635,484, equal to $3.75. American Beet Sugar—Season’s out. put about 2,500,000 bags of sugar; in- crease of 100,000 bags over previous season, Aszociated Apparel Industries defleit, year ended November 30, $803,137, vs. net ‘ncome $1,028401, equal to $4.96 & common share.’ | Eastern Utilities Associates converti- ble share earnings, 12 months to.No- vember 30, 92 cents, vs 79 cents. Lehman Corporation net asset value vs. $74.17 June 30, 1931. on capital stock; cents September 0. not tragic under these circumstances, is unfair. Development Held Significant. To the uninitiated this development may not appear of great significance. But it has already begun to attract widespread attention in leading finan- clal circles. The burden of responsi- bilities has been removed from the shoulders of depositor corporations (which never wished to assume them) and transferred to the trust company which acts as trustee—a place where it is obvious it should be. As a precedent, then, these trust agreements cannot be overestimated and, to my mind, they int to the way in which other fixed usts must develop during the next few years. New York Cotton Special Dispatch to The Star. NEW YORK, January 6.—Opening cotton prices today were 1 to 3 points higher, with an active demand from the trade and firmer markets abroad. Contracts were in supply from commis- sion houses, especially m near months. Opening prices were: January 6.19, up 1; March 6.28, up 1; May 6.46, U] 2; July 6.65, up 3; ber 6.89, up g and December 7.05, up 3. Protective Committee Formed. NEW YORK, January 6 (#)—A] December 31, $56.64 a common share, | pointment of a receiver for the A Gold Mines Co. has Union Pfg. passed quarterly dividend the formation of a Protestive Committee last payment 12l; for holders of the comsany’s 6 per cent been followed by convertible. debenture bonds. &