Evening Star Newspaper, January 11, 1932, Page 15

A—15 LIVE STOCK PRICES REPORTED FIRMER General Average Is Now $1 to $2 Abhove Lows of December. JANUARY 11, 1932 e TRANSIT UNITS OF U. S. CARRY 14 BILLION PASSENGERS IN YEAR FINANCIAL. EVENING STAR. WASHINGTON, D. C. MONDAY, THE NEW YORK CURB EXCHANGE Recelved by Private Wire Direct to The Star Office. FINANCIAL. CURB ISUES PONT | T0HIHER LEVELS, Market Climbs Slowly in Med- erate Trading—Leaders’ Gain Small. Everybody’s Business Sales— Add 00. Open 4 N ~Prev. 1931~ Btock and High. Low. Dividend Rate. 1% Michigan Gas & Oll. 7% Mid Sta Pet vto A 22¢ 43 Mid West Ut (b8%). 15 Miller (1) & Sons. % Mo-Kan Pipe Lins. . 1% Mtg Bk.Col Am S 96c Moss Gold Mines. ... Nachman Spring Nat Aviation. . Fuel Gas (1).... 5 Nat Pow & Lt pf (6).250s Nat Rubber Mach... 4 New Eng Pow pf (6) 603 New Jersey Zine (2). 1 Newmont Mining.... 13 N Y Shipbullding Cp. 4 N Y Tel pf (6%).... 50s Niag-Hud Pow (40¢) 26 Niag-Hud Pow A w.. 2 Niag Share(Md) 20c. 19 Nitrate Corp Chile B 1 Noma Elec (40¢c).... 1 North European Oil. 2 Nor St Pow pf (6)... 20s Ohto Copper. ... 20 Pan Am Alrways Pandem Ofl. . Pantepec Oll........ Paramount Cab Mfg. Patterson Sarg (2).. Pennroad Corp (40c) Penna Gas & Elec A. Penn Pw & Lt pf (1) Peoples L&Pwr (A). Philip Morris Inc. Street Cars, Busses, Interurbans and Taxis Had Revenue of $1.307,511.000 Dur- , 1ing 1931, Says Trade Survey. 14 1n 100-share lots except those desigmated by letter “s." -~ Bt ock and es— Dividend Rate. Add 00. Open. High. Low. Close. 24 24 2% | Agfa Ansco......0e. 1 Ala Gt South pf(4).. 408 Aluminum Co of Am 1300s 53 AluCoof Ampf (6). 1 Am British & Cont. . AmCitPw& Lt B Am Com Pow A. Am Com Pow B. Am Cyanamid B Am Equities. Am For Pow war. Am Founders. . Am Gas & Elec ($1). Am Invest war...... Am Lt & Trac (2%). Am Mfg Co pf (5) Am Maracaibo. . Am Salamandra Am Superpower. . Am Superp 1st (6).. Am Thread pf (25c). Am Util & Gn B vic. Apvalachian Gas. Arkans Nat Gas A A8S0G&EI (A) b5 % . Atlas Uti) Corp. Atlas Utillties war Auto Voting Mach. . Auto Vot M Co pr pt. Babcock & Wilcox (4 Beneficial | L (13%). Blue Ridge Corp. ... Blue Ridge cv pf(a3) Brazil Trac Lt&P(1) Courage Should Guide U. S. to Substantial Readjust- ment and Rehabilitation, Says George W. Davison, Gotham Banker. 1 4 1 4 5 to the decrease in traffic. Fares and wages held remarkably steady. Con- struction and material costs show a marked downward trend. Expenditures by the electric railways for extenslions, betterments and maintenance totaled l?proxlmluly $310,000,000, a decrease of a little more than 8 per cent from the year before. Estimates for 1932 show approximately the same expendi- tures as in 1931 for maintenance, but a somewhat smaller budget for new plant and equipment. The past year witnessed a substantial increase in the number of motor busses operated in city service, the survey re- port shows. In all 1,750,000,000 pas- ! sengers were carried last year on the | lines of organized motor bus companies engaged in community transit in the larger cities. Trolley bus operatios, continuing the trend of several years past, were ex- panded to a notable extent in 1831. Eight additional railways joined the ranks of trolley bus operators, and for the year the number of such busses in the United States increased approxi- Special Dispatch to The Star. NEW YORK, January 11.—Electric railways, bus lines and organized taxi- cab systems forming the transit indus- try in the United States carried a total of 14,212,362,000 passengers and took in revenues of $1,307,511,000 in 1931, re- | according to a survey report issued to- ills, {day by Transit Journal. The volume he | Of passenger traffic is equivalent to 116 by | times the population of the country. The investment required to administer the transit industry is estimated at, $5,500,000,000, the total ranking it as| one of the largest utilities and high among the big industrial groups. As the year 1932 begins. the survey points out, the transit lines of the United States comprise approximately track | 63.000 miles of track and bus route on solve | which reglullnr servlc:edubmven v‘l’l‘b: America’s financial problems. The lat- | public vehicles opera! y organ est project is the deppmitnrs' relief cor- | companies. Of this total nearly 34,000 poration, with an initial capital of [miles represent street and interurban $150.000,000, to aid depositors in banks | electric Tallways operating almost en- which have closed their doors since | tirely on the surface; 1100 miles are BY DR. MAX WINKLER. NEW YORK, January 11 (N.AN.A. —Courage should guide the peop! rather than fear and apprehension, ac- cording to George W. Davison, presi- dent of the Central Hanover Bank & Trust Co. Only hard work and substantial adjustment can cure the Nation's Mr. Davison continues, adding that t| existing problems can be solved not legislation but by intelligent and cour- ageous effort. The tremendous natural resources of the United States and a versatile and intelligent people should afford an ex- cellent basis for an early rehabilitation. Depositors’ Aid Proposed. 1t is becoming difficult to keep of all the institutions proposed to BY FRANK I. WELLER, Associated Press Parm Editor. The cattle market seems to be in & much better position basically than for some time and sheep and lambs have turned up the best prices since October. Not all classes of { stock can claim improvement, but in a general way val- ues are $1 to $2 above the low in De- cember on comparable Chicago prices. Lightweights have been carrying most of the advance, the better grades gain- mg 25 to 50 cents at Chicago for the week and ranging from steady to 25 cents higher at Kansas City and East St. Louls. Shippers wanted toppy offerings regardless of weight, and because such kinds were very scarce, had to substi- tute to get enongh to fill Eastern orders. Demand Increased. Chicago shippers paid $11.40 right off the reel for long yearlings, the wide de- mand making for a pretty good market BY JOHN A. CRONE. Special Dispatch to The NEW YORK, January 11.—The Curb Exchange, after opening iower today, | pointed upward near the end of the| first hour and continued that trend as the session progressed, though trading did not broaden as prices advanced Electric Bond & Share opened off a half point, but soon made up this inRial decline and reached the 12 level around | midday. Cities Service was active but| a shade lower most of the time. Gold- man Sachs was unchanged, but Atlas Utllities again moved forward. P Strength in the air shares. active bidding for the motors, irregularity of { specialties and & somewhet lcssened demand for ofls featured forenoon trad- ing, which lacked the color of opera- tions a week ago. Rumors of pending airplane crders from foreign govern- 1 258 23 ments lacked confirmation, but some of the air shares were bought on these reports. Although Dayton Airplane & Engine. Irving Air Chute and a few other plane makers, such as Cord Corporation. whose subsidiaries are in that busi- ness, were more active than usual, the best gain was made in Pan-American Afrways, which was up a point by mid- | day. Curb Exchange stocks were lower, throughout the list at the opening. . Electric Bond & Share started off on a 1500 share deal at 11lg, off 1. and later extended the decline. Amer- jcan superpower opened with a 2500 share sale, unchanged at 43 but on the next sale was fractionally lower. Among other utilities to decline were Atlas Utilities, American Gas & Elec- tric, Middle West Utilities and United ht & Power A ities Service sold initially at 6% for 1,000 shares. Then it went lower, off fractionally on the day. Humble Oil had a decline of almost points. Standard Oil of Indiana and Interna- tional Petroleum were both lower. Mine shares were quiet. United Verde was off fractionally at 4. Industrials were little changed. Aluminum Co. of Amer- ica was a point lower at 53. Aviation! and radio stocks were inactive. In the motors, Cord was off a shade at 7% an¢ Ford Motor, Ltd., lost a fraction 8t 5lp 2 = S Steel Output Drop Seen. NEW YORK, January 11 (#).—The | sutomobile industry has been taking more steel in the past three weeks in connection with new model construc- tion. However, there is now likely to be & slight decrease in steel operations, the trade points out, for the reason that a fortnight or more usually elapses after the annual motor shows until the car manufacturers are able to gauge prob- able demand. SRR TR S Short Sale Rules Revised. NEW YORK, January 11 (#).—The New York Stock Exchange has revised its instructions to members regarding short sales, requesting that members report only the net number of shares by which each stock in each account has changed from the preceding day, and new short sales, and name of owner. BONDS ON THE CURB DOMESTIC 2 Pw es in ousands. 4145 BCon 8B 50 % 1 Con Gas U G & til 65 A 4 E 55 Grane Co_bs '4 Tucible Steel hdahy Pke 5las 3 i L Pow 57 s 7., 94 s gl Thees A7s4 28 oston 5 e BT A 00 62 i 42 461, : 337 & Tax 663 o8 Hinols PAL 3 THROBaL Eien B '3 a8 A 81 7 | Weekly News Review. Buff N&EP pf (1.60)., Butler Bros. . Cable & Wire B rcts Canadian Marconi Carib Syndicate Carnation Co (1 Cent Pub Sve A b5 % Central States Ele 3 P& L pf (6)..1008 Claude Neon Lts Ine. 2 Clev El Illum pf (6). 108 103 Col Ol& Gas vte.... 7 Columbfa Pic vte. . .. Cmwlith & Sou war. . Com Water Service. Consol Auto Merch. Consol Copper. . Con Gas Balto (3. Consol Retail Stores Coon (WB)Co(31.60) Covper Range. Cord Corp. . - Corp Sec Ch (b6%). Cusi Mex Mining.... Dayton Air & Eng... Deere & Co......... De Forest Radio. . Detroit Afreraft. ... Dixon (Joseph) (4). Dugquesne Gas Durant Motors. Duval Tex Sul wi. East Sta Pow (B)... 3 Eastern Sta Pw pf B.175s Eisler Electric...... 1 Elec Bond&Sn(b§%) Elec B & Sh cu pf 5., Elec B & Sh pf (§) Elec Pow Assoc (1). Elec P & Liop war.. Fairchild Aviation. . Fajardo Sugar. ... Fischman & Sons. Flintkote CoA. . 19 349 Ford Mot Ltd 36 Fox L'heater (A). Gen Alloys. . Gen Aviation Sl Gen G&E cv pf B(6).100s Gen Theat Eqev pf.. 27 Glen Alden Coal (4). 1 Globe Underwrit 40c. Gulf Oil of Penna. .. Hackmester Lind. .. Happiness Candy. .. Hudson Bay M & 8. Humble Oil (12) Hygrade Food Prod. Imp Ofl ot Can (50c) Im T Gt B&L(p1.12). Insull Iny (b6% ) . Insurance Security. . Intercontinent Petn. Int Petroleum (1). Int Utilities B...... Irving Air Ch (50¢). [talian Superpow A. Leh Co & Na (1.20).. Leonard Oi1. . Lone Star Gas n 83c. Long Isld Lt pf (7). McCord Radiator B.., Merconi I M 87 1-10¢ Marion Steam Shov. Mass Util Assoc. ... Mavis Bottling (A).. Mayflower Asso (2). Mead Johnson (15).. i» Met Chain Stores. .. P N B SRR EN S 5 waroAN AL 8o 481 46% 11 1 8u Commwlth Edison (8 76s 118% # Pilot Rad Tube A.... & Plon G M Ltd (12¢ Pitts & Plymouth Oil (50c).. Prudential Invest. .. Pub Uty R K Shares Corp RR & Util Inv A Heliance Manag. . Republic Gas Corp Reybarn Co. Reynolds [nves Roan Antelope Min. . Rockland L&P (40¢). St Anthony Gold.... St Regls Paper...... Salt Creek Consol. Seaboard Util (28¢). Sec Allied Corp (1).. Seeman Segal L Sunray Un Gas Unit Lt Util Po 4 5 1% Dividend 34 | nual payment. rates in 1, | dividend. 45% | gtck. stock. Plus 2% in nPlus 8% in Selected Industries. . Sle Ind al ctfs(3%).. Shenandoah Corp. Bmith (A.0.). Smith-Corena vtc. . South Penn Oil (1).. Southld Royalty 20c. SW Bell Tell pf (7).. 505 Spanish & Gen rets. . Spanish & Gen (B). . Stand Ofl of Ind( 1). Stand Ofl of Ky 1.60. Stein(A)&Co (1.60). Stutz Motor CAr..... Swift & Co (2 Swift Internat Swiss Am Elpf (6).. 50 Tastyeast, Inc.. . Technicolor Inc Tech Hughes (60c).. Tob Prod of Del wi.. Trans Lux DLPS.. Tri-Cont Corp war Tri-Utilities Tubize Chatel. B.... ‘Tung Sol Lamp(1)... Unit Car Fast (40¢). Unit Chem pt pf (2). Unit Corp wi Unit Founder: Unit Gas Corp. Unit Gas Corp war. . Unit Gas pf (7). Com Edison Feb 1... Pub Sve N 11 .Feb 1 *Ex dividend. 28 | % Payable in cash or stock. | fplus 5% in stock Sowwmre oo Lake Erie(5) 100 1 Hold xw. Bros (3).... & Hawr. SRS R RO TS e S RSN e S R 6 1 o Oil.. 114y of Canada(1) e GO R R I Oy B O N e O & Pw A (1).. Unit L & Pwr p£(6).. Unit Profit Sh pf(1). U S Dalry (A) (6)... US Elec Pow ww. U 8 Foil (B) (50¢)... U S & Intl Secur.... U S Playing Card 2% Unit Stores v.t.c..... Unit Verde Exten (1) & Lt (b10%) Utility Equitles. ..., Util Equity pf(5%). 50 Van Camp Pkg. . Vick Financial (30e) Walgreen Co Walker. H Welch Grpe Juce Wenden Copper . W Va Coal & Coke. .. Wol TW Ld (34 3-ic) (1. RIGHTS—EXPIRE 9 1% 1% 1 1% 2 2% 2n 2K 2% dollars based on Iast quarterly of semi-an- 1Partly extra. IPlus 4% in stock. b Payable in stock. e Adjustment g Plus 6% in stock. hPlus 1% in k Plus 10% in stock. m Plus 39 in stock. P Paid Isst year—no regular rate. stock. CORPORATION REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS. NEW YORK, January 11.—The fol- lowing is a summary of important cor- poration news prepared by the Standard | | Associated Press: | | Although prices dropped to new low ket experienced sharply rising values for securities. | There seem to be two major factors to which the upswing was attributable, | | namely, reports of an early Franco-| British agreement with regard to Ger- | man reparations and the introduction | ‘mllun bill in the Senate. These, to- | gether with a rather oversold condition, | | furnished the necessary impatus. actual movement of the stock market, H a7 hild wat o 82 ogg o L WeE DL § Mon: L Ha 85 A 81 Narraganseit 85 57 §Nat DAL s A 2026 §Nut BAL % B 20k 7 New Eng G&E 8’80 1 New Enk Pow bs according to our price index for 90 [ stocks, showed & gain of 59 points, rising from 62.1 on January 2 to 68.0 on January 8, with all of the three major groups figuring in the advance. | The bond market acted in much the industrials. for- rails, especially second-grade, | 3 473 g0 | showing general improvement. | States Government securities, however, | again gave a disappointing performance. | Steel Orders. The unfilled orders of the United States Steel Corporation as of Decem- ber 31 dropped to the lowest figure since 1910. The decrease was attributed to a delay in orders from two of the largest tin plate consumers and the smallness |of the rail and structural contracts. United | #1° | Orders totaled 2,735,353 tons, against 2,- Baxon Pub W ww—With warrants Fw—_Without warrants. W -When issued. 923,891 tons as of November 30, a de- ne of 198538. This compares with 2,943,596 tons as of December 31, 1930. Steel ingot pfoduction for the industry |in the weck ended January 4 was at | slightly under 22 per cent of capacity, | which compares with a fraction above 20 per cent in the Christmas week and & shade below 24 per cent two weeks ago, according to Dow, Jones & Co. With the opening of the New York Automobile Show, all manufacturers ex- cept Ford have introduced their new niodels. In preparation for this and other shows, motor car companies have stepped up production. In the week ended January 2 output rose to 18,890 units, which compares with 14,772 in the previous week and 20,658 in the corresponding week of last year, ac- cording to Cram's automotive reports. Crude oil prodvction was again cur- tailed, making the possibility of price cuts more remote. According to the avcroge output in the week ended Jan- of 83,800 barrels, The Companies, Canadian Cottons, Ltd., operating at about 70 per cent of capacity. Federal Light & Traction net income before depreciation, 12 months to No- vember 30, $2,017,241 vs. $2,211,981. New York & Foreign Investing de- clared 62% cents quarterly dividend on - American Petroleum Institute, the daily | usry 2 wes 2,298,100 barrcls, a decrease | levels in the first two days of last week. passed quarterly the following sessions of the stock mar- paid 75 cents in cash or 1-40 share of of the Reconstruction Finance Corpo-|p The | o {year ended November 30, $1.76 vs.| 6'% per cent preferred stock; paid $1.62'; October 15. Ann Arbor Railroad November net operating income off 33.6 per cent; 11 months off 87.6 per cent. Kroger Grocery & Baking sales four weeks to Januafy 2 off 14 per cent, 52 weeks off 7.2 per cent; stores in oper- ation four weeks to January 2 averaged 4,889 vs. 5167. Pennsylvania Railroad sued for al- leged infringement of container car | equipment patents by Less Carload Lots Co. and L. C. L. Corporation. American Community Power takes no October 1 Childs Co. December sales off 5 per cent; 12 months off 8.5 per cent. Corporation Securities Co. of Chicago preferred dividend; common stock on November 2. Kansas City Public Service December Teceipts off 13.6 per cent; 12 months |off 6.1 per cent. Madison Square Garden deficit, six months to November 30, $237,181, vs. deficit $63,054. New York, New Haven & Hartford ailroad to cut pay of supervisory chiefs 110 _per cent Radio Corporation of America—Co~ fendant with American Telephone & Telegraph and General Electric in suit instigated by Duovac Radio Tube Co. for alleged violation of the Clayton act Southwestern Bell Telephone gross Tevenue, 11 months to November 30, off 5 per cent; aet earnings off 12 per cent United Verde Extension Mining D cember output 2,917,000 pounds V New York & Foreign Investing liquid- ating value December 31, 1931, $4.31 a common share vs. $1.03° December 31, 1930 Dominion Steel & Coal Corporation, Ltd —Wabana Mines resume operations. Nash Motors common share earnings, $2.78. e =3 AUTO PARTS FACTORIES CN FULL-TIME BASIS By the Associated Press. CLEVELAND, January 11.—Full- time operating schedule was made pos- sible for several automobile parts man- ufacturers here by the receipt of large oders from Detroit automobile man- ufacturers Among the firms given orders were the Geometric Stamping Co., Midland Steel Products, Chase Brass & Copper Co. and the Cleveland Hardware Co. Several million dollars’ worth of the orders came from the Ford Motor Co. The Columbia Axle Co. announced a night shift of 60 men had been added since the receipt of $2,000,000 in orders, mostly from the Auburn auto plant The National Acme Co. is making shock absorbers for 8,000 Ford cars and the Thompcon Products Co. also has Ford order for tie rods and chassis parts. - . Wife Blames Extravagance. Mrs. Edith Knowle of Chicago testi- 'f.wd in her divorce suit that she led a hand-to-mouth existence,” while her husband followed “glass-to-mouth life.” Pmdumon in Germany now av- Coal erages 10,000,000 tons s month. |'| Brokers’ Comment I | NEW YORK, January 11.—Prospects of enactment of the Reconstruction Finance Corporation legislation and of | favorable developments at the railroad wage meeting kept brokerage house | commentators rather optimistic toward the market today. Some observers, | however, felt a corrective reaction was Statistics Co., Inc., New York, for the Aaction on quarterly dividend on $6 cu- | jikely. 0 mulative first preferred stock; paid $1.50 | Thomson & McKinnon—Wwhile we be- | lieve in higher prices for stocks, the trend s likely to be a see-saw affalr | rather than steady progress. E. F. Hutton & Co.—We feel that the more buoyant issues can be bought dur- ing weakness by traders who are try- ing for quick trading profits. Paine Webber & Co.—Recent develop- ments suggest possibility of an inter- lude of better feeling preceding publica- tion of annual statements and next series of adverse dividend changes, Ex- cept for railroad bonds, which should stand to benefit from an_anticipated favorable agreement on rail wages, we | are disinclined to follow, except for | trading purposes, any sharp bulges. We are skeptical that any rapid advance out of a low point represent a true transition from a bear to & bull mar- ket. That process, under the circum- stances now existing, is likely to be a matter of weeks or months rather than a given day. Shields & Co—For the moment the market must be regarded as a day-to- day affair taking its primary influence from news developments, Too rapid an advance will more than discount the possible benefits of favorable happen- ings expected for the near future, but while a fairly orderly market is ex- pected, trading opportunities will be found on the upside. Hornblower & Weeks—From a purely | technical standpotnt the recovery move- | ment should accomplish a cancellation | of one-third to one-half of the ground lost since November. Jackson Bros, Boesel & Co—We deem it altogether likely that the pres- | ent improvement in the stock market is not & mere technical rally predicated lon an overextended short interest. We deem it quite likely that the im- provement could last for the balance of this month and perhaps stretch into February. Redmond & Co—The action of the market continues to suggest higher prices and we see little profit in trying to swim against the tide even though the waters may later recede and carry some stocks to new low ground. From a trading standpoint, therefore, we con- tinue to recommend the purchase of | stocks on moderate setbacks, but believe should be prepared to abandon position quickly in the event that s takes an unexpectedly bad turn. Gives $15,000 Every Birthday. Theophilus King, Quincy, Mass., bank president, gives $15,000 to churches, social agencies and other institutions annually on his birthday anniversary. London 1s seeking ways to reduce its public school expense $200,000 & year. Iissory notes by the receivers. " | gin, ™ |as very encouraging, especially because December 31, 1930. Such aid is to be in the form of loans to receivers of national and State banks upon prom- The proposition is highly construc- tive, and should receive the assistance it merits. The effects upon the economic life of the country should be favorable, because the corporation will tend to increase materially the purchasing power of the people. Within two weeks the United States Steel Corporation will meet for divi- dend action. It is possible that a declaration may be deferred until the April meeting, when the management should be in a somewhat better posi- tion to judge the outlook for the bal- ance of the year. Such a step will pos- sibly be interpreted to mean that the corporation will for the time being adopt a policy of paying dividends semi- annually rather than quarterly. Guggenheim Favors Dividends. Since Steel common is included in the portfolios of many investment trusts, which provide for the elimina- tion of shares on which dividends are passed or deferred, some selling is likely to develop. Should, however, conditions improve, as it confidently is expected, such selling will be readily absorbed. Although prices of non-ferrous metals, including copper, lead and zinc, are near bottom, any appreciable rise |in price will depend upon improvement |in treir consumption. The outlook for American Smelting & Reflnin%, a large j producer of these metals, will depend, | { iherefore, to a considerable extent, on what the future holds in store for the | bulk of its products. | It will be recalled that Senator Simon Guggenheim, president of American Smelters, pointed out recently that it was his belief that dividends should be maintained in bad times as long as the situation will permit. Concern Plans Dividend. At the present time earnings are at low ebb, and nothing is shown for the common, which is now on a 50-cent dividend basis. Should conditions im- prove in Europe, normally a large con- sumer, one would be justified in view- ing the future of American Smelting with optimism. The Colgate-Palmolive Peet Co. is | expected to show for 1831 the dividend on the common, amounting to $2.50 a share, earned by an appreciable mar- according to Charles S. Pierce, president. This should be considered of the increase during the year in pre- ferred dividend requirements on the ad- ditional 80,000 shares of 6 per cent stock issued in the course of 1931. Mr. Pierce also points out that the reduction in operating expenses last year of about $1,000,000 was effected through equalization of salaries and wages, but not by any general reduc- tion of these. Auto Tags Hint Pick-Up. The stage for a turn in business is occasionally set by the automotive in- dustry, many competent authorities maintain. This view is also shared by J. J. Reuter, president and general manager of the Oakland Motor Car Co. If correct, a change for the better cannot be very far off, as may be gath- ered from the gain of more than 40,000 in the number of automobile licenses issued in New York State this year as compared with last year. Germany's situation makes impossi- bie her continuing to make political payments, Chancellor Bruening declares in a formal statement. There is noth- ing new in this. The recently pub- lished Basel report holds the same view. French Buying German Bonds. Dr. Bruening's emphasis on it is destined chiefly for home consumption, required at this time in view of the forthcoming conference at Lausanne, where the question is expected to be taken up with a view to bringing about | a satisfactory and, it is hoped, perma- | nent solution. Investigation reveals that a consid- erable amount of German bonds is be- ing bought for French nccount. One firm closely identified with leading French institutions is understood to 2ave placed substantial orders. It is net unlikely that the attitude on | the part of Prance toward the German debt problem is undergoing an appre- ciable change, and that the French do not consider it at all impossible that another downward revision of repara- tions payments may be effected. In such case the status of German commercial debts should improve very materially. Buying of these may there- fore be one way of offsetting losses re- sulting from further cuts in Germany’s payments to France on account of polit- ical obligation: G. F. Swift Optimistic. _The business of Swift & Co. should give a good account of itself during 1932, according to G. F. Swift, president, | The company’s manufacturing and distributing costs have been grengly re- duced, Mr. Swift says, adding that the business has been highly diversified, and that it varies hardly at all with the ups and downs of other industries. Commenting on the rather large in- ventory loss which the company took last year, Mr. Swift calls attention to the fact that the loss was offset by manufacturing profits and by profits from the sale of various capital assets, (Copyright. 1932. by the North Newspaper Alliance, !nc.lhm"“ln CHECK TOTAL GAINS, By the Associated Press. Checks cashed on individual ba - counts in leading cities of lhcbfpc'fil:‘c&l Reserve System increased 44 per cent | during the week ended January 6, as compared with the previous ~period The total debits for comparable weeks, as announced by the Reserve Board, follows: : Week ended Jan. 6. Previous week. . Same week last year. e -$10.543,993,000 « 7.320,536,000 . 13,202,207,000 Bond Protective Committee. NEW YORK, January 11 (#)—A pro- tective committee is being form to represent the holders of Long-Bell Lum- ber Co. first mortgage bonds. Its or- ganization is at the suggestion of R. A. Long, chairman of the company. Petroleum Prices Higher. NEW YORK, Januery 11 (#)—Ad- vices frem Los Angeles stat> that Gen- erzl Petroleum Co. has put into effect a higher schedule of prices on its pur- chases from various oll producers in Kettlemen Hills. The new prices, ac- cordm¥ to the report, range from 6€ cents for 33 gravity to 78 cents for 39 Cuifomi s understosd 3o have sdopied a lers! ve adoj a similar policy. v | ceived.’ subway and elevated railways; 2,900 miles are suburban electrifications; 185 miles are trolley bus lines, and 26,000 miles are bus routes. Vehicles in Operation. Transit systems have in operation today 84,000 vehicles for passenger transportation. These vehicles com- prise more than 54,000 street and inter- urban railway cars, 9,500 subway and elevated rallway cars, 3,200 suburban electrified railroad cars, 230 trolley busses and 17,000 busses. In addition 84,000 taxicabs are operated in the United States by organized companies. Surface electric raflways, these in- cluding both city and interurban lines, currleg 65.09 per cent of the transit passengers in 1931, Rapid transit lines carried 17.94 per cent; electrified rail- roads, 1.76 per cent; trolley busses, 0.29 per cent; motor busses, 12.26 per cent, and organized taxicabs, 2.66 per cent. Gross révenues, according to the sur- vey, were distributed among these vari- ous forms of transportation in approxi- mately the same proportions. “The relative importance of the sev- eral forms of transit,” says Transit Journal, “varies somewhat, according to the size of the community served. In the cities of more than 500,000 popula- tion nearly 90 per cent of the total traffic is carried on the street railway and rapid transit lines, with motor busses carrying about 8 per cent and organized taxicabs 2 per cent. In the cities of 10,000 to 500,000 population the motor bus plays a more important part, carrying about 20 per cent of the traffic, as compared with 78 per cent for the electric railways and 2 per cent for taxicabs. Approximately the same ratios prevail in the cities from 25,000 to 100,000 population. In communities under 25,000 population the bus is prob- ably the most important element in the transportation situation.” Electric Railways. The situation of electric railways in the United States underwent compara- tively little change in 1931, the transit publication reports. As a result of the general business depression, the number ot passengers carried decreased about 92 per cent from the preceding year. Gross revenues declined in proportion mately 40 per cent, with a correspond- ing increase in route mileage. Addi- tional important extensions of trolley I{gghopenuon undoubtedly will occur in Electrified suburban railroads devel- oped & marked increase in track mile- | age last year. While the” volume of | traffic handled by this form of transit is still small compared with that of several of the other forms, it is in- creasing steadily, and will become more ln(more important as time goes on. Passenger Volume. Summarizing the totals of transit passengers carried in 1931, Transit Journals shows that a total of 7,753, 752,000 passengers were carried by elec- tric surface raflways, rapid transit lines, electrified suburban railroads, trolley busses, motor busses operated under auspices of electric railways and organ- 1zed taxicabs in the larger cities of more than 500,000 in population. Of this total the electric surface railways car- ried 4,150,000,000 passengers, trolley busses carried 30,669,000 and organized taxicabs accounted for 113,900,000 per- sons In the intermediate cities of from 100,000 to 500,000 population 3,640,- 296,000 passengers were carried by elec- tric surface railways, trolley busses, mo- tor busses amd organized taxicabs. In this division the electric surface rail- ways accounted for the greatest num- ber of passengers, namely, 2,860,000,000 persons. In small cities whose popula- tions range from 25,000 to 100,000, in communities under 25,000 population and in interurban areas of the United States the transit Industry carried 2,818,314,000 passengers in 1981. Tabulation of gross revenues for the year 1931 shows that the electric sur- face railways received from paying pas- sengers a total of $678,000,000. i!lpld transit lines received $157,000,000; elec- trified suburban railroads, $84,000,000; trolley busses, $1,623,000; motor busses in city and suburban service, $134,888,: 000, and organized taxicabs, $252,000, 000. The income of the electric surface railways in cities of more than 25,000 was $559,000,000, and the income of the surface railways in communities under 25,000 population and in the suburban areas was $119,000,000. D. C. INSURANCE MEN GIVEN TAX RULING As- of Underwriters’ sociation Informed of Fed- eral Laws. Members Coples of an opinion of Commissioner | of Internal Revenue Burnet on tax- ability of life insurance proceeds under | Federal estate tax law have been for- warded to members of the District of | Columbia Life Underwriters’ Associa- tion by David S. Bethune, president of the association. As there has been a great deal of discussion as to the taxability under | Federal revenue acts of proceeds of life insurance policies, Mr. Bethune has cir- culated the information, contained in a letter received by Jullan 8. Myrick, chairman of the special Committee on Federal Estate Taxation of the National Association of Life Underwriters, {rom Commissioner Burnet. Letter on Insurance Tax. The letter states, in part: “During recent months there has been a marked increase in the activity of a certain group of life insurance agents who are attempting to place policies of insurance under a plan whereby com- plete exemption from Federal estate tax and Federal income tax may be secured. “The plan is, briefly, as follows: Mr. A now carries a large amount of insur- ance on his own life, for which he ap- plied and for which he has paid all | premiums to date. He is advised to sur- render all of this insurance and to have Mrs. A, the beneficiary, apply for and urchase an absolute owner policy on Exs life, all premiums to be paid by her. It is contended that in the event of the death of Mr. A all over $40,000 of the proceeds from the present insurance will be subject to Federal estate tax, and that there is no method of legally obtaining exemption of all the proceeds from this tax except by means of an absolute assignment ‘for value re- Conditions Involved. “Furthermore, it is contended that if such an assignment is made, the excess | of the proceeds over such valuable con- sideration and subsequent premiums | paid by the transferee will be subject to Federal income tax. It is claimed, however, that by the use of the ‘abso- lute owner’ policy no Federal estate or income tax will be payable at the death of Mr. A, thus effecting a considerable tax saving. X Onder the existing estate tax regu- lation (that is, article 27, Regulations 70, 1929 Edition, as amended by T. D. 4206, promulgated August 6, 1930), where the decedent does not retain until his death any of the legal inci- dents of ownership in policies of in- surance taken out by himself, the pro- ceeds of such policies are not required to be included in the gross estate of the decedent under the insurance | provisions of the estate tax law. Fur- thermore, the proceeds of insurance paid by reason of the death cf the in- sured are wholly exempt from income tax under the existing income tax law, except that ‘in the case of a transfer for a valuable consideration, by assign- ment or otherwise, of a life insurance, endowment or annuity contract, or any interest therein, only the actual valuc of such consideration and the amount of the premium shall be exempt from taxation. * * ¢ Conditions of Exemptions. “It may be stated, therefore, (1) that where the insured under a life insur- ance policy taken out by himself abso- Jutely and irrevocably disposes of all the legal incidents of ownership therein other than by a testamentary disposi- tion, the proceeds of such policy are not taxeble as part of his gross estate under the provisions of the estate tax law, and (2) that where such disposition does not take the form of a transfer for a valua- | able consideration, the entire proceeds of the policy paid by reason of the death of the in.;‘urelg are gxenl]pvt.' from taxation under the income tax law. .”Mnm(estly, then, no substantial ben- efit from the point of view of tax is to be obtained by the surrender of exist- score), 2314a24; extras (92 score), 23; COMMODITY DEMAND EXPECTED TO GAIN Bankers’ Journal Points to Recent Reduction in Inventories and Curtailed Output. Special Dispatch to The Star. NEW YORK, January 11.—Two of the most significant trends in business conditions have been reduction in in- ventories and indications of relative stability in prices of important com- modities, while progress made by basic American industries in readjustments to a lower level of prices, wages and other costs has been largely obscured by financial disturbances, the Bankers’ Assoctation Journal says in its current discussion of business conditions. “During the past year a substantial reduction in inventories has been ac- complished through holding production below current shipments by a consider- able number of industries, including au- tomobiles, tires and tubes, petroleum and gasoline, heating and plumbing fixtures, cotton goods, hosiery, blister co;l)per and zinc, sulphuric acid, metha- 0], superphosphates and acetate of lime, to mention only the most impor- tant for which monthly statistics are available,” the Journal says. “A deficlency of production below consumption obviously can continue for only a limited time before production must be speeded up, and in the case of many commodities the future demand is much more likely to expand than to contract because of sheer replaceent re- quirements, which can be postponed, but are sure to assert themselves sooner or later. “Overproduction is being corrected. At the same time prices of finished goods are being brought into line with those of raw products through reduction g; z: enlzsl?lg costs‘tlhlt will be a feature annual reports, - lished shortly.” 2 ‘eieiob Grain Market By the Associated Press. CHICAGO, January 11.—Grai, tended downward early todar. infi enced by setbacks in Wall Street securi- ties. Relative firmness of Liverpool wheat quotations and decreasing sup- plies there were virtually ignored. Starting at %4 off to 'y up, wheat afterward declined all around. Corn also opened at 4 decline to '4 advance anc subsequently sagged. Enlargement of the amount of wheat on ocean passage gave an advantage to bears. The total afloat for importing countries was announced as 31,352,000 bushels, compared with 20,816,000 a week ago and 25,168,000 at this time last year. There were advices, too, that Argentina continued to press offerings of her wheat for export, and was hedg- ing in Liverpool. A further incentive to sellers of wheat was an official report that Germany had increased her Winter wheat crop| sowings 1.8 per cent. Winter rye in Germany was also reported as having been increased 1.7 per cent over last year, and Winter barley increased 1.5 per cent. Some increase of Winter wheat acreage was likewise noted in other continental European countries. Corn and oats prices sympathized with wheat market downturns. Provisions were neglected. CHICAGO DAIRY MARKET. CHICAGO, January 11 (#).—Butter, 10,042 tubs; weak; creamery specials (93 extra firsts (90-91 score), firsts (88-89 score), 2la2] seconds (86-87 score), 20 standards (90 score centralized car lots), 223,. Eggs, 22a22ly; head; sheep, 1.00a3.00; lambs, 4.00a7.35, ply; market steady. 44ad45: cob corn, new, on all grades scaling 1,000 pounds down- ward. On the average, the uppes crust of the light steer and long yearling sup- ply has been ylelding better beef than the heavies, turning more readily into consumptive channels and bringing a sharp premium over weighty stock. The supply of strictly good and cholce cattle is far below trade requirements, and some say that so long as this con- dition continues there probably will be encugh substitution to maintain cur- rent price levels on cattle now selling at $8.50 upward, Chicago basis. Common and medium offerings with weight, the kind of cattle that usually fircdoml.nate January and February mar- ets, show about the only losses. The market on them ebbs and flows in re- sponse to purely temporary influences, usually ng*mg because of excessive numbers. Although still $1 higher than the low time in December, these cattle lost 25 to 50 cents for the week at Chi- cago, while the decline was moderate to 25 cents at Kansas City and Omaha. The trade has warned finishers that too many short-fed weighty cattle are being unloaded and that the kinds with qual- ity should be fed longer. Traced partly to improved dressed prices and to anticipated supply cur- tailment because of snowstorms in the West, the improvement in sheep and lambs carried values to the highest point since mid-October. Lambs gained 25 cents at Chicago for a top of $6.80. Fat wool lamb prices advanced 50 to 65 cents at Kansas City, choice offerings selling around $6.35. Under moderate receipts, Omaha advanced 50 cents, while East St. Louis chalked up a 25 to 50 cents advance for a top of $6. Hog Prices Off. According to reports, Colorado lambs soon will be moving freely, but the ° trade is rather skeptical as to whether or not these lambs will measure up to the high standard of quality set by corn belt fed Westerns recently arriv- ing. The volume of thin lambs sent to the country for fattening continues to grow smaller. Hog prices again are disappointing. Declines varied 5 to 25 cents around the market circuit. Downturns were forced by packers, who took advantage of an uneven outlet. Heavy hogs suffered the sharpest drop until the price spread in favor of the lighter kinds attracted ship- pers to heavyweights ‘and ptn.u.fiy closed the gap. The state of the hog market easily may be seen in the refusal of the Chi- cago market to pay much more than lzcanu.poundxornub«cm offered. New York Cotton Special Dispatch to The Star. NEW YORK, January 11. cotton prices today were uncl to 5 points lower. Trading was of mod- erate proportions, with a fair amount of hedge selling from houses with Southern connections. A Opening prices were: January, 6.37, off 1: March, 6.49, unchanged; May, 6.61, off 3; July, 6.75, off 5; October, 7.04, off 3, and December, 7.17, off 2. Baltimore Markets Special Dispatch to The Star. BALTIMORE, Md, White potatoes, g sweet potatoes, bushel, 40a80; yams, barrel, 1.00a1.75; beans, bushel, 1.75a 2.50; beets, per 100, 2.53::.50;&“‘1'“01! sprouts, per quart, 10a20; e, bushel, 40a50; carrots, per 100, 2.50a 3.50; caulifiower, crate, 4.00a5.25; onions, per 100 pounds, 3.00a4.00; peppers, crate, 1.50a2.75; spinach, bushel, 35a 1.00; squash, bushel, 1.50a2.00; toma- toes, crate, 1.00a3.26; eggplants, crate, 1.5082.50; turnips, hamper, 15a2i apples, bushel, 35a1.25; grapefruit, box, 1.25a2.75; oranges, box, 2.25a4.00; straw- berries, quart, 15a25; kale, bushel, 25a45. Chickens—Young, 18a20; Leghorns, 15a17; old hens, 15a21; Leghorns, old, 1 ; roosters, 10a12; ducks, 13a23; geese, 15a20; guinea fowls, pair, 23a50; turkeys, 16a26; pigeons, pair, 20a25. Eggs—Receipts, 1,523 cases; current t receipts, 15a19; hennery whites, 24825; nearby firsts, 20. Butter—Good and fancy 24a28; ladles, creamery, 18a20; Dprocess, 22a23; store-packed, 14. Live Stock Market. Cattle—Receipts, 500 head; fair sup- ply: market slow. Steers—Choice to prime, none; good to choice, 7.00a7.75; medium to good, 5.50a6.75; fair to medium, 4.25a5.25; plain to fair, 3.50a4.00; common to plain, 3.00a3.50, Bulls—Choice to prime, none; good to choice, none; medium to 4.00a 4.50; fair to medium, 3.50a4.00; plain to fair, 3.25a3.50; common to plain, 3.00a3.25. Cows—Choice to prime, none: good to choice, none; medium to good, 3.15 84.00; fair to medium, 3.2543.75; plain to fair, 2.50a3.25; 1.50a2,50. common to plain, Heifers—Choice to prime, none; good to choice, 5.0026.00; medium to 45005.00; fair to medium, 40600480 plain to fair, 3.00a4.00;, common to 30.008 Sheep and lambs — Receipts, 1,600 fair supply; market steady; plain, 2.50a3.00. Fresh cows and Springers, 60.00. Hogs — Receipts, 5,000 hea good supply; market lower; lights, 4.90a5.15; heavies, roughs, 3.25a4.0 pigs, 4.7585.15. 4.5084.85; medium, 4.90a5.15; light pigs, 4.50a4.90; Calves—Receipts, 300 head; light sup- Calves, 4.0089.50. Hay and Grain Prices. ‘Wheat—No. 2 red Winter, export, no quotations; No. 2 red Winter, garlieky, spot, February, 61. domestic, 507%; January, 50%; domestic, spot, .0022.10. Oats—No. 2 white, domestic, spot, Corn—No. 2 yellow, 35'2a36; No. 3, 3415a35. Rye—Nearby, 40a45. 8,755 cases; weak; fresh, graded first. centimes. ing life insurance policies in favor of Ngcl.lhd ‘absolute owner’ policies,” extra firsts, 101.a20; 19; current receipts, firsts, frigerator extras, 14e15. PARIS BOURSE PRICES. PARIS, January 11 (#).—Three per cent rentes, 78 francs 50 centimes. Five per cent loan, 101 francs 15 centimes. Exchange on London, 86 francs 19 The dollar was quoted at 25 francs 50%; centimes. 13%; re- Hay—Receipts, none. New hay is starting to arrive in increasing quan- titjes, but so far no official grading has been attempted, selling being strictly on merit. Demand for old hay slow and market is dull and quiet, with prices in buyers’ favor at a range of 13.00a 16.50 per ton. Straw—No. 1 wheat, 8.5020.00 per ton; No. 1 oat, 9.00610.00 per ten. — e . Premier MacDonald's expenses in the last election in England were $5,175.