Evening Star Newspaper, January 12, 1932, Page 15

FINANCIAL. CURD SHAESEASY AFTERARLY GAN Leaders Show Only Frac- tional Changes, With Small Turnover. BY JOHN A. CRONE. Bpecial Dispatch to The Star. NEW YORK, January 12—Opening actively higher, today's Curb Exchange session slowed around midday and showed a disposition to ease slightly on the reduced volume of trading. At midday Electric Bond & Share was up about % and Cities Service was virtually unchanged. American Super- power was fairly active but unchanged, as was Standard Oil of Indiana Early strength of foreign markets, especially London, Paris and Montreal, brought activity and firmness into the foreign share list here. Ford Motor, Ltd.; General Electric, Ltd., and Bra- zilian Traction, principal strong spots in transatlantics in London, were also better in this market. i The coppers benefited by the i4-cent & pound increase in the price of the metal in foreign markets. Roan Ante- lope was more active than usual, though Newmont Minirg met some offerings around ncon. Aluminum Co. Ltd, Canadian subsidiary of Aluminum Co. of America, will get a $5,000,000 order from the Soviet government if Premier Bennett sanctions the payment of $2,000,000 for Russian coal and the bal- ance in preferred credits, according to Canadian advices. This news, however, was without immediate market effect on either the American qr the Canadian company's shares, Most of the oils were irregular today, as estimates for last week indicated & further gain in crude output. Pacific Western Ofl, however, advanced on its statement showing cash earnings of $1,500,000 for 1931 before _reserves. The company retired about $1,300,000 of 6% per cent debentures at & saving of $600,000 principal and more than $85.000 in interest during 1931 Strength of foreign markets and a budget of favorable domestic news caused stocks to open higher. Electric Bond & Share at 115 for a block of 1,700 shares opeped unchanged, but in succeeding trade® rose fraction- ally. Cities Service at 6% lost %, but thereafter reversed its trend. Ford Mo= tor Ltd., at 6 and Brazilian Traction at 10 were both up slightly. American Gas & Electric at 37 was up 5. A block of 1,100 shares of American Superpower opened at 44, up lx. Niagara Hudson Power at 63 and Pacific Western Oil at 515 were higher. Pennroad, after opening un- changed at 27 quickly reached 3. Swift & Co., Segal Lock and other miscel- laneous domestic issues showed gains ranging from a fraction to more than & point. SR S ¥ RATE OF COINAGE DROPS DURING YEAR OF 1931 By the Associated Press. Robert J. Grant, director of the Mint, states that domestic coinage was the smallest in value and number of pleces for many years in 1931. The total number of domestic pieces of money executed by the mints was 98,236,500, valued at $6,615,110, as compared with 399,467,200 pieces, valued at $16,278,180, during the pre- vious year. Gold coins valued at $4,570,000, sub- sidiary coinage valued at $795,300, 5-cent pieces valued at $408,000 and 84,181,000 bronze 1-cent pieces were coined. Gold acquired by the Government at mints was valued at $210,791,181, while 2,193,313 ounces of silver, at an av- eage cost of 32.61 cents per ounce, were purchased. Electric melting of gold and silver deposits has been established at the Philadelphia Mint and New York assay office through improvement in design and modernization of equipment. BONDS ON THE CURB les in ousands. 2 Alabama Pw 425 DOMESTIC BONDS. High. Low. Close. 167 82 2 52 9% '57 331a 8 801, So1 84 Er+rd 391 393 36 a6 & B6% s i 5334 138 '52 Tiu 5g 4125 C 56 92 D G & E 55 4 Pacific Pw & L n &L 41as o) f 55 5! 0 7 G L& C 4 '8 7 Elec 518 *12 . 1 No Tl 4125 F gEeeguyyyy P, South Calif Ed 5 '5 Bouth Calif Ed 55 Southern N G 65 e S s tnes Ao a0 60, et 100 34 74 3 Thermoid Co 1Unit P & L 6 198 Rub s 33 2 Waldor{-Astor 7s ‘5420 ash W & Pow 5560 97% FOREIGN BONDS Pr Bk 81s 3T, 41% 6fas "53° 44 p 3% . 334 57 26 T 291% 65 h 2814 4214 3 3% 0 26% 10 Stinnes 7s 46 xw... 26 ww—With warrants X¥_Without warrants. p—New Wi—When issued. s ' Government railways of Czechosova- Xia have ordered 1,550,000 tles, to be used in 1932, - THE EVENING STAR. WASHINGTON, DInC A TUESDAY, JANUARY 12 "FINANCIAL, x¥xx A—1§ I j Receiv Stocks sold in 100-share lots except those de { ~Prev. 1931 Stock and Hizh. Low. Dividend Rate. 10 Aero Supply ) Agfa Ansco. Ainsworth Mfg Ala Power pf (6) Allied Mills Inc..... Aluminum Co of Am Am Austin Car Am Capital B Am Cigar Co. Am Cit Pw & Lt B. 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 Lt & Trac (2%4). Am Mfg Co pf (5). Am Maracaibo. .... Am Superpower. Am Ut &Gn B v Am Yvette Co., Inc. Anglo Chil Nitrate Appalachian Gas. ... Arkans Nat Gas A... Ark P &L pf (7). Armstrong Cor AssoG&EL (A) As50 G & El war. Atlas Util Corp Atlas Utilities war.. Auto Voting Mach Auto Vot M Co pr pt. Blug Ridge cv pf(a3) Brazil Trac Lt&P(1) Brill Corp B Buff N&EP pf (1.60). Bunker Hill & Sull Butler Bros, een Canadian Marcon... Carnegie Metals. .... Carrier Corp.... Cent Pub Svc A b5%. 2 Central States Elec.. Cities Service (g30¢c) Cities Serv pf (6). Cit Sy P & L pf (6)..100; Claude Neon Lts Inc. Clev El Illum (1.60). Colombia Syndicate. Colon Ot g Col O11& Gas vte.... Commwlth Edison (8 Cmwlith & Sou war.. Com Water Service. Consol Auto Merch Con Balto (3.60 Copper Range. Cord Corp. .oceeeeon Corroon&Rey pf(A). Creole Petrojeum. ... Cresson Consol. . Crown Cent Petrol. Cuneo Press (2% ). Cusi Mex Mining. . Darby Petroleum Dayton Air & Eng. Deere & Co. ... De Forest Radlo..... Derby Oil Refining, Detroit Alrcraft..... Dubilier Cond & Rad Duquesne Gas Durant Motors. . Sast G & F As pL(6). st Sta Pow (B)... East Util Assoc (2) East Util Assoc cv. Eisler Electric. . Elec Bond&Sh(b6% ) ElecB&Shcupth Elec B & Sh pt (6)... Elec P & Lt op war.. Elec Pow Assoc A (1) Elgin Natl Watch... 50 Fairchild Aviation Fajardo Sugar Ford Motor, C: . Ford Mot Ltd 3¢ 3-50 Fox L'heater (A). Flintkote Co A. Gen Aviation. . GELtd rts(p36 3-5¢). 3 Gen G&E cv pf B(6). 505 Gen Theat Eq cv pf.. 21 Glen Alden Coal (4). 2 Globe Underwrit 40c. 2 Goldman Sach 8 Grt A&P Tean v (6). 10s Grief Bros A (1.60) 2 Gulf Oil of Penna Hackmester Lind Hecla Mining (40¢).. Hires (CE) A (2). Hudson Bay M & 8. Humble Oil (12)...., Hydro El Securities. Hygrade Food Prod. 11l Pow & Lt pt (6).. 50, % Imp O1l of Can (50c) ImT Gt B&L(p1.12). Indiana Pipe Line(1) Indian Ter I1lu Oll A. Insull Inv (b6%). Insur Coof N A (2).. Intercontinent Petn, Int Petroleum (1). Int Utilities B. Johnson Motor Lake Shor Mines Lakey Foundry..... 43 42 2 5 o o= TAeorow® BomeaBoie orm o —om= e o wen— BN o S @ kS 3 3 2 3 s 1 100s 3 18 14 1 e o wow wan 8 00609 e 2. ed by Private Wire Direct ignated by letter “a.” | ~Prev. 1031~ " | High. 271 25 High. Low Close | New: N Nia, Stock and Dividend Rate. % Leh Co & Na (1.20).. 2 Lone Star Gas n 88c. 3 Mapes Cons Mfg(t4) Mass Util Assoc.... Mavis Bottling (A).. 2 Mead Johnson (t5) Met Chain Stores M1d West Ut (b8%) . Minne-Honey pf (6). 2 Mo-Kan Pipe Line. .. Mohawk Mining (1). Mountain Prod, (80c) Nat American Co... Nat Aviation. .. Nat Fuel Gas (1). Nat Pow & Lt pf (6).150 Nat Puk Sv A (1.60). at Rubber Mach St Corp war. Nat Sugar NJ (2). Nat Transit (1)..... New Eng Pow pf (6) 80 mont Mining... 1 w Process Co.. ... 2 N Y Shipbuilding Cp N Y Tel pf (6%).... Niag-Hud Pow (40¢) Hud Pow A W.. ' NEW YORK CURB EXCHANGE to The Star Office. Sales— Add 00. Open 12 8% 0. 1 5 ( 2 4 1 3 1 0 4 8 N s 1 1 1 s 1 1 1 1 s £y 2 208 50 Niag-Hud Pow C w.. Niag Share(Md) 20c. Nitrate Corp Chile B Nordon Corp Ltd.... Nor St Pow A (8)... Nor St Pow pf ( Nor St Pow pf ( 6).. 9 Ohio Copper. .. Oilstocks Ltd (A). PacG & E 1st pf 1%. Pac Western Oil. ... Pandem O1l. . Pantepec Oil. Paramount Cab Mfg. Pennroad Corp (40c) 26 Penn Pw & Lt pf (7) 100s Penn Wat & Pow (3) 1 Pepperell Mfg (4). Pilot Rad Tube A Pion G M Ltd (12¢).. Pitney Bowes (b4 %) £ub Ut H Cp cum pf. Pub Util Hold xw Pure Oll pf (6)... R R Shares Corp. . Reliauce Manag Republic Gas Cor| Roan Antelope Min Rossta Intl Corp. St Regis Paper.... Salt Creek Prod (1) Seaboard Util (28¢) Segal L & Hdwr. Selected Industri, Shenandoah Corp pf. Singer Mfg (3).. Smith (A. 0.).. South Penn Oil (1). SoCalEdpfA (1%). South Col Pwr A(2). Sou Pipe Line ( So. Uni 1 Gas Southld Royal Stand Oll of I Stand Oil of Ky 1.60. Stand Oil Nebr (2). Stand Pwr & Lt (2) Stand P & L (B) (2). Unit G T 1% 10%s 1% W & 1y 5 % 1% nual payment. 1% 241 1w )fi‘ | dividend. 24% | stock. 1% | stock. 414 14 Unit Gas Corp Unit Gas pf (7)..... Unit Lt & Pw A (1).. Unit L & Pwr p£(6) .. Unit Profit Sh pf(1). U S Elec Pow ww.. U S Foil (B) (50¢). U S & Intl Secur. U S Inter Sec 1st pt U S Playing Card 2 Univ Pictures. ... Utah P & Lt pf (7).. Util Po & Lt (b10%) Util & Ind Utility & Ind pf(1%) Van Camp Pkg. Walgreen Co. valker, H (25¢) . Wenden Copper Wil-low Cafeterfas Wol TW Ld (39 3-5¢) Com Edison Feb1... PubSveNII .Feb 1 10 Dividend rates in dollars based on last quarterly of semi-an- “Ex dividend. a Payable in cash or stock. fplus 5% in stock. JPlus 2% in stock. D Plus 8% in stock. D Paid last year—no regular rate. Stand P & L pt (7)... Starrett Corp. Stutz Motor Car, Sun Invest. Sunray Oil.., Swan Finch Oil pf. Swift & Co (2)...... Swift Internat’l (14) Technicolor Inc. . Tech Hughes (60c) Trans Air Tran; Trans Lux DL P Tri-Utilities. ....... Tung Sol Lamp(1). Unit Am Utilities Unit Corp war Unit Founders. 109w Corp o S MRE G kRN SRR E SRR ORE S KB are~ 2 RIGHTS—EXPIRE 1 1% 2% fPartly extra. IPlus 4% in stock. bPayable in stock. e Adjustment g Plus 6% in stock. hPlus 1% in k Plus 10% in stock. m Plus 3% in Brokers’ Comment NEW YORK, January 12.—Stock Ex- change commission houses were inclined to express considerable encouragement teday over the action of the market, but several continued rather cautious in their advices. Extracts from market let- ters follow: Hornblower & Weeks—We would be prepared to repurchase trading lines to- day, believing that any further irregu will be followed by a resumption of the aavance, which should carry well into Thursday's session before meeting any formidable rgsistance. . E. F. Hutton & Co.—We think that confidence, while the rail shares should continue to discount the improved out- look for the carrier division. Volatile, active issues appear to be attractive trading commitments on any irregu- larity. Paine, Webber & Co.—A further up: ward movement in rails, which is an ticipated today and tomorrow, would so greatly improve the technical market position of these stocks as to bring about a substantial upswing in that €roup and most likely spread to the in- dustrials. Charles D. Barney & Co.—While the market in the present situation contin- ues in general to act exceedingly well and may succeed in advancing further without pausing to consolidate the first sharp rebound, the technical probabil- ities, based on past experience, are against it. However, the market gives one the distinct impression of being im- p:llient to extend the recovery immedi- ately. Thomson & McKinnon—While France’s Dprotest against the Breuning debt dec- laration and the Bank of Prance's hesitation in extending its share of short-term credit to Germany somewhat clouds the forelgn credit situation, in- ternational financial authorities con- tinue confident that Germany will re- ceive relief from her reparation- obli- gations. The market's action yesterday reflected such confidence and seems to foreshadow further irregular recovery in security prices. Redmond & Co.—We continue to re- gard the rally, as an interlude in the bear market, with a testing out process likely next menth, when the important annual reports begin to make their ap- pearance and a better line can be ob- tained on the trend of Spring trade. One thing to bear in mind in connec- tion with 1932 reports of sales and ton- nage yolume is that many of the large corporations have substantially reduced rating costs through wage reduc- tions, lower prices for raw materials and other economies, 50 that it will be pos- sible for most of them to show larger profits in 1932 even though the volume %“busmess shows little change from Shields & Co.—While Washington evi- dently is learning that the big lesson of deflation and depression is economy, some municipal administrations evi- dently have not learned a lesson from the loss of prestige suffered by those Wwho have put politics before necessary larity and selling during early trading | bonds will continue to reflect improved | adjustments. The local mess is becom- ing more serious and if emphasized may “bl’cume a market factor. However, it is beileved that there are sufficient clear- thinking officials in cities needing | money to prevent undue disturbance. | | |SUN LIFE OF.CANADA | REPORTS BUSINESS GAIN | Special Dispatch to The Star. | MONTREAL, January 12.—In keep- ing with encouraging news from vari- |ous lines of business, indicating an improvement in general conditions, is | the report that assurances in force with the Sun Life of Canada have passed the three-billion-dollar mark. In spite of the unprecedented economic upheaval throughout the world, the company wrote over five hundred millions of paid-for new business during the year Just ended. The income shows & large increase over the previous year and is understood to have been not much under two hundred million dollars. Insurance institutions are least af- ected by depressions, for life insurance is essentially a long-term proposition and its investments must of necessity be made to cover a period of years. In- surance companies are more concerned, therefore, with the earning power of their investments than their market | values. From reports gleaned in the | financial district it is understood that | the assets are now more than six hun- | dred millions and that it has made new vestments during 1931 of well over | fifty million dollars. It is known that | during the year the Sun Life purchased | Government bonds alone to the extent of over twenty-three millions of dollars. 134 BANK OF BETHESDA DIRECTORS RE-ELECTED J. Harry Welsh Is Chosen to Fill M. W. Offutt Place on Board. | By a Staff Correspondent of The Star. | . BETHESDA, Md, January 12— | Thirty-four directors of the Bank of Bethesda were eclected at the annual meeting of the stockholders of the bank held here yesterday afternoon. All but one position was filled by re-election, while the one vacany, caused by the death of M. Wilson Offutt, was filled by electing J. Harry Welsh to the board. The other directors are Walter Bach !rach, L. W. Beall, Edgar N. Brown, Col. Wallace M. Craigie, E. Taylor Chewning, Thomas Hampton, Ezrg Gould, George E. Hamilton, John Immirie, G. Wady Imirle, Walter P. Johnson, Frank E. McMillin, Lewis Keiser, Robert D, Hag- ner, Dr. Benjamin C. Perry, Walter E. Perry, Dr. Wash B. Waters, Ralph 8. Morrison, George P. Sacts, Brainard W. Parker, Francis C. Wallace, Luke I. Wilson, Frank Wilson, Turner Wilson, Ford E. Young, Senator Robert G. Hil- ton, Floyd E. Davis, Frank S. Ward, Paul Bsrl(sgndin. liharles S. Robb, William urst, Merl Donal L. Chamberlin. L Athletic sports are becoming ular in. practically every city of ci:.g:? Investment Plans BY GEORGE T. HUGHES. There are two investment plans for operations in a bear market such as that which has prevailed in the past two years. One is to buy for income and the other is to buy for capital ap- preciation. Both involve risk in vary- ing degree and hoth offer possibilities of profit. The one selected is apt to depend on the temperament of the in- vestor. To buy for income involves selecting securities, bonds or stocks which sell on a high yield basis. The market is be- sprinkled with what look like attractive opportunities along this line. It is probably true that not in many years has it oeen possible to obtain so great a return from a properly diversified list as it is at present. The danger is that the high yield foreshadowds a reduc- tion or an omission of the dividend if it is a stock, or the inability to meet fixed charges if it is a bond. It is very hard to distinguish between securities which are depressed in mar- ket price sympathetically with other securities and those in which the de- cline is a legitimate reflection of the difficulties of the situation. Investors who choose this course will look to the preferred stocks, many of which are selling at ‘record lows and perhaps they will even look to foreign bonds. Cer- tainly they will make commitments in domestic bonds. The other course, to buy for capital appreciation, means the accumulation of common stocks regardless of dividend rates. It involves a proportion of non- dividend paying shares. The intent here is to choose stocks representative of essential industries and leaders in their respective fields. The theory is that eventually these stocks must re- cover and that then the account will show a large profit. Meanwhile it is a matter of relative indifference to the buyer whether he receives a return on his money or not. If successful the second plan is pretty sure to be the more profitable. The difficulty is in making the selections. (Copyright. 1932 INSURANCE STOCKS NEW YORK, January 12 (#)—Over- the-counter market: Aetna Cas & S Agricultural Amer_Home Am Surety Boston Fid & Dep.. Firemen's Ing Glen Falls Globe & Rut. Great Amer Hanover .. Hartford Fire Home Ins Kancas City Mass Bond Natl Fire . Prov Wash St Paul Fi Sun_ Life Travelers Jugoslavia is having difficulty in financing its plan to peg wheat prices. 4 GAIN IN GASOLINE CONSUMPTION SEEN Check on Taxes Shows More Than Half Billion Paid in 1931. BY CHAS. P. SHAEFFER, Assoclated Press Business Writer. Motor car owners of the United! States consumed about 15,000,000,000 gallons of gasoline during the calendar year 1931. ] In making the announcement the American Motorists’ Association said these owners, for the first time, paid { more than half a billion dollars in gas- oline taxes. The association’s tabula- tion shows that the average motorist during the year paid approximately $20 in taxes on 565¢gallons of fuel, which carried him an average distance of about 6,800 miles. “Government figures on gasoline tax consumption for the first six months of the year provided the basis of come interesting calculations,” said the asso- ciation. “For one thing they bespeak a striking gain in consumption which will carry the total for the year very close to the 15,000,000,000-gallon mark if indeed. it is not actually exceeded “With the average tax on such fuel 2.44 cents per gallon in the various States, that means gasoline tax rev- enues will exceed the $500.000,000 mark which was approached last year when the average rate was only 3.35 cents and when the total earnings of this levy were $493,865.117." Asserting that it is doubtful if more positive evidence of the meaning of the motor car is available than that represented in these figures, the asso- ciation continued: “A gasoline consumption of 15,000 060,000 gallons means that the aver age vehicle will have used 565 gallons. At the average tax rate of 3.44 cents a gallon each car owner will have con- tributed about $19.45 under this levy alone.” CORPORATION REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS. NEW YORK, January 12—The fol- lowing is a summary of important cor- poration news prepared by the Standard Statistics Co.. Inc, New York, for the Associated Pres: News Trend. Automobile production gain showed an increase, rising to 30,775 cars and trucks in the week ended January 9, according to Cram’s automotive reports. This compares with 18,582 units in the previous week and 41,874 units in the corresponding week of last year. It was reported that the Ford Motor Co. started production on its 1232 four-cylinder car at the rate of 1,500 cars a day, which will be gradually increased to 2,000 units daily. With this resumption there are now only four companies that are not operating on regular sschedules. The Companies. Revere Copper & Brass—Advances | copper and brass prices ! cent a pound, respectively. Sinclair Consolidated Oil—Negotia- tions completed for merger of company with Prairie Oil & Gas and Przirie Pipe Line; proposed terms submitted to di- rectors. & Southern Union Gas takes no action on common class A and preferred divi- dends; paid 2 per cent in common stock on common, 50 cents on class A and 43% cents each on 7 per cent and $1.75 cumulative preferred on October 1,1931. Allegheny Steel—No. 1 plant resumes operations after month's idleness. American Telephone & Telegraph re- ported no cut in $9 dividend rate planned at this time. Central States Utilities net income, be fore depreciation and Federal taxes, 12 months to September 30, $23,881, vs. $131,452. Chesapeake & Ohio Railway, together with Erie, Pere Marquette and New York, Chicago & St. Louis, allowed to reduce rates on commodity freight in mixed car loads to destinations in Cen- tral Freight Association territory as move against motor truck competition. Chicago, Milwaukee, St. Paul & Pa- cific December preliminary net operat- ing income off 70 per cent; 12 months, off 50 per cent. ) Consolidated Retail Stores December sales off 12 per cent, 12 months off 13.2 per cent, Cord Corporation, Lyconing Mfg., subsidiary, —obtained orders totaling $675,000 for aircraft engines during De- cember vs. $155,000 year previous; latter offering new straight-elght motor. Crosley Radio starts manufacture of electrical refrigerator; to sell below prices of other electrical units on the market. Cutler-Hammer, Inc., net shipments 3 months to December 1, 1931, $1,130,~ 538, vs. $1,937,178; 12 months, $5,907, 800, vs. $9,342,899. General Cable advanced price of bare copper wire in carload lots®}y cent a pound to 9% cents; weather-proofed cable advanced to 1075 cents a pound. Indianapolis Power & Light net in- come, before depreciation and Federal taxes, 12 months to September 30, $3,- 443,003, vs. $3,432,485, Interstate Power net income, before depreciation and income tax, year ended September 30, $1,337,713, vs. $1,463,333. Packard Motor Car introduces new light 8, revives twin 6; has four com- plete lines, with 41 body madels, in addition to custom cars. Pressed Steel Car received $300,000 order for 150 hopper gondola cars from Nerthern Pacific Railway. Yellow Truck & Coach Manufacturing November sales of G. M. C. Truck, sub- sidiary, up 68 per cent. Allis-Chalmers Manufacturing acquires equipment of Birdsell Clover Hulling Manufacturing Co. of South Bend, Ind.; also negotiating for acquisition of an- other company. Motor Wheel operations 300 per cent greater than at any time in past six months; orders on hand for demount- able wooden wheels about 40,000 greater than year ago. National ‘Bellas Heds—Reported plan- ning to institute drastic economies; further liquidation of inventories ap- proved. Pittsburgh Terminal Coal—No. 4 Horning miners strike against wage cut. Railway & Utilities investing net asset, value December 31, 1931, $15.99 a combined preferred share vs. $54.97 June 30, 1931. Republic Steel—Niles plant resumes; substantial amount of orders received in past few days. Rice-Stix Dry Goods deficit, year ended November 30, $309,092 vs. deficit $80,080. Sharon Steel Hoop—Operations in- creased to 50 per cent of capacity. West Virginia Pulp & Paper $6 pre- ferred share earnings, year ended Octo- ber 32, $5.67 vs.. $20.56. Anaconda Copper Mining subsidiary, American Brass, increases prices brass and copper products, 's cent and ! cent a pound, respectively. Associated Gas and Electric December electric output of system up 0.4 per cent 12 months up 6.2 per cept; December gas output off 11.2 per ceft; 12 months off 3.2 per cent; 12 months water sales up 8.3 per cent. Community Power & Light—Profit of company and subsidiaries 12 months to | November 30, 1931, was $1,045,887, be- fore depreclation and Federal taxes. Howe Sound—Copper output_cut to 3% ' about 13,000,000 pounds annually. + cent and g | France’s broad policy of government support through the establishing of ! quota restricting foodstuffs imports is said to be helping French agriculture, MUNICIPAL DEBT HEAVILY IN LAST EIGHT YEARS Many Cities Are Now Faced With Matur- ing Obligations—Refunding Operations Have Been Deferre BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 12.—The crit- ical position in' which many municipal- ities now find themselves with respect to their maturing obligations has tem- porarily shifted interest from govern- mental to city, county and State finance problems. This has been accentuated by the controversy that has just arisen be- tween the New York City administra- tion and the group of bankers who have been called upon to find a way out of the dilemma in which the larg- est municipality in the country has become involved through ‘biting off more than it can chew.” A period of extravagance in munic- ipal, county and State financing covers the past decade, though the greater part of the total post-war borrowings have taken place in the past eight years. This also coincides with the era of overproduction of domestic cor- poration bonds and foreign obligations, which were made easy to sell while in- terest rates were low and the annual increase in national wealth produced a large margin available for the ab- sorption of all kinds of securities. Botween 1919 and 1924 borrowings generally classified at “municipal” in the United States amounted to $4,746,- 000,600. In the following eight years they were $1,300,000,000,.or 70 per cent of all such emissions after the war. The high point was reached in 1927, with issues amounting to $1,509,000,000 and only slightly smaller in 1928, 1929 and in 1930. In 1930 they showed a {drop to approximately $1,275,000,000. This check in the output of municipal securit'es was due mainly to the in- ability of the borrowers to obtain bids for their offers, and not through any great effort to economize, In most of the period between 1924 and 1931 municipalities were increas- ing their debt, while the debt of the United States Government was being steadily and liberally reduced. One factor in the stimulation of municipal debt was the tax-exempt character of the evidences of this debt, which be- came increasingly popular as indi- viduals with large incomes shifted their holdings in corporation issues dhat were taxable into those which gave them decided advantages when making up their annual income tax statements. Taking an average of 5 per cent as the borrowing rate on the new mu- | rowing. S INCREASED i l d as Taxes Decline. nicipal loans contracted since 1919, it is found that this has placed or the} borrowers an increase in annual debt service charges of $550,000,000, or about $4.50 per capita. The situation in many communities today is that they have reached their debt limits and are carrying short- term loans in their local banks, which these institutions are refusing to re- new and at the same time putting the lid down tightly on any additional bor- As a result the New York banks and those in other large cen- ters are being appealed to for accom- modations at a time when there is almost no market for the highest grade municipal credits. It is under- stood that last week no bids were available for some of the paper of strong municipalities coming due be- fore the end of January. Many - of these smaller communities could have refunded their bank borrow- ings at reasonable rates of interest six or 12 months ago, but put off this oper- ation in the expectation that it might be accomplished at lower rates of inter- est later on. One of the difficulties in dealing with municipal loans has been the lack of understanding among the representatives of local governments of the basic elements in financing and their unwillingness to consider reason- able demands for economy in their ad- ministrations. The situation is complicated by a general reduction in the amount of tax collections coinciding with the maturity dates of local obligations. The decline! in values of real estate and the falling off in rents are phases collateral to the general municipal dilemma. The financial community does not believe that any consideration will be given by the farmers and promoters of the Reconstruction Finance Corporation to the appeal of Mayor Walker of New York to embody specifically in this measure a section that will permit mu- nicipalities to draw on its resources in order to help them out of their predica- ment. There is a Nation-wide demand for economy in local government which includes a reduction in the salaries of city, county and State employes and the elimination of a large body of political appointees who do little to justify their retention on padded pay roll lists. The quickest way for local governments to obtain a restoration of their credit is by balancing their budgets. Until they do s0, there will be a definite discrimina- tion in the market for municipal se- curities against their issues. . (Copyright, 1932) IU.S. CARRIERS REPORT |TWO PER CENT RETURN Income of $509,502,961 Shown for 11 Months of 1931 by Class 1 Roads, With a net railway operating income of $509,502,961 for the first 11 months of 1931, the class 1 roads of the country showed a return of 2.02 per cent on property investment, according to re- ports from the carriers made public by ;he Bureau of Railway Economics to- ay. In 1930 the net railway operating income was $835,852,137, or 3.38 per cent,. In the 11-month period 39 class 1 roads operated at a loss. Of these 13 were in the Eastern district, seven in the Southern and 19 in the Western. The aggregate report was based on returns from 171 lines. * This showed gross operating revenue of $3,948639,835 for 11 months and operating expenses of $3,024,526,027. In 1930 the gross operating revenue for 11 months was $4,966,680,198 and the operating expenses $3,679,352,538. Grain Market By the Associated Press. CHICAGO, January 12.—Grain values underwent early downturns today, de- spite initial firmness of the New York Stock Market. Liverpool wheat quota- tions were lower, and Argentina was reported continuing to press wheat of- ferings abroad. Opening unchanged to % off, wheat afterward showed setbacks all around. Corn started unchanged to a shade lower and continued to sag. Wheat market declines deveoped in the face of assertions that prices were below cost of production. On the other hand, Chicago wheat futures were at a premium over Liverpool, whereas normally the opposite is the rule. A British trade authority reported that, although European potential demand for wheat was substantial, financial stringency precluded heavy purchases until decreasing immediate supplies made buying obligatory or increased pressure irom the Southern Hemisphere pulled values lower. Predictions of a cold wave tonight overspreading the Northwest and threatening much lower temperatures in the central part of the country failed to stir up any wheat market rallies Apparently, traders considered likelihood of Winter wheat crop dam- age remote. Instead, more attention was given to advices of beneficial moisture over most of the Winter wheat belt. Corn and oats paralleled the course of the Wheat market. Provisions were responsive to an up- ward trend of hog values. . A T. & T. Dividend. NEW YORK, January 12 (#).—No re- duction in the $9 dividend on American Telephone & Telegraph is contemplated by the management, Dow, Jones & Co. said. Earnings for the last quarter are said to have shown a somewhat steeper decline in operating income and net than in the preceding quarters, but re- sults for the year are expected to show ?hL: $9 dividend earned by a small mar- gin. STOCK AND BOND AVERAGES Press. By the Assoclat Prom Yesterd: Industrials. Today..... -3 Previous day. Week ago.. Month ago. Year ago. Three years ago Five years ago. High, 1931-2 ... Low, 1931-2. High, 1930. Low, 1930 High, 1929.... Low, 1929 Industrials. 67.9 67.6 64.8 67.6 89.5 Three years ago. High, 1931-2 Low, 1931-2. High, 1930. Low, 1930 High, 1929 Low, 1929 OIL OUTPUT GROWS DURING PAST WEEK Trade Journal Reports Gain of 18,347 Barrels in Daily Av- erage Production. By the Associated Press. TULSA, Okla., January 12.—Despite an increase of 38,642 barrels from East Texas wells, the oil production of the United States was held last week to an increase of 18,347 barrels in the daily average, the Oil and Gas Journal re- ports. ‘This increase, making the total pro- duction 2,219,458 barrels daily instead of the 2,201,111 barrels registered the week of January 2, followed more than five weeks of consistent decline. East Texas produced 329,527 barrels a day, as compared with a previous pro- duction of 290,885 barrels. The entire State produced 840,778 barrels, as com- pared with 804,618 barrels in the pre- ceding week. Oklahoma production was down from 492,835 barrels to 481,115 barrels, largely due to effectiveness of a new proration order. California production increased from 491,000 barrels to an even 500,000. Kan- sas produced 100,935 barrels daily, a re- duction from 102,940 barrels. Eastern production was down 1,000 at 122,000 barrels. Rocky Mountain pools flowed 84,804 barrels, a reduction from 89,358 barrels daily the previous week. SHORT-TIME PERSONAL LOANS SHOW INCREASE Short-time personal loans, popularly known as “family financing,” amounted to $4,145,000,000 in 1931, on which loan charges of $748,000,000 were collected by the various agencies engaged in the field, according to an estimate by Frank- lin W. Ryan, Ph. D, formerly assistant chief of the Finance Division of the United States Department of Commerce and vice president and economist of the Franklin Plan Corporation. Dr. Ryan also estimates that the total volume of funds employed in making these loans, most of which are for a period of a few months, was $2,626,000,000. ‘The annual volume of these loans for 1981 represents an increase of $250,- 000,000 over 1930, with the addition of only $34,000,000 in the capital employed. One of the striking changes of the 1931 figures from the 1930 rests in the de- cline in both the annual volume of total outstanding co-maker loans by in- dustrial banks. This is partly accounted for, in the opinion of Dr. Ryan, by the rapid increase in personal loan depart- ments of commercial banks from $150,~ 000,000 to $180,000,000 and by the fact that some of the industrial banks were operated at a loss durlng the last two years. . Strawn to Speak. BALTIMORE, January 12 (Special). —Silas H. Strawn of Chicago, chairman of the board of directors of Montgomery Ward & Co., and president of the United States Chamber of Commerce, will be the speaker at the monthly meeting of the Baltimore Bond Club to- morrow, at the Southern Hotel. Gov. Albert C. Ritchie and Mayor Howard OUTLOOK IN WHEAT HAS BRIGHT SPOTS | More Cheerful Feeling Re- sults From Recent Ad- vances in Market. BY FRANK I. WELLER, Associatd Press Farm Editor. A definite section of the wheat trade would like to be bullish, but hesitates to make important commitments. During the last week May wheat reached 58 cents at Chicago, the best figure since December 19. Feeling in business and financial circles, especially abroad, is more cheerful. Many be- lieve that whatever Congress does about reconstruction will be helpful to commodity markets and the develop- ment ‘of a brisk foreign demand was taken as confirming recent reports that Europe and the Orient would come into the market after the turn of the year. Await Foreign Orders. Still, traders are not inclined to follow advances until they are better advised as to whether foreign import- ers will continue to take enough North American grain to reduce supplies and induce speculative buying. Some are quite bearish, but are not backing their opinions with heavy sales of futures. Some disappointment was manifested over the failure of wheat to respond more generously to the continued strength in securities, but when the limited trade is taken into considera- tion the situation is not surprising. Despite recent upturns, the stock mar- ket’s general demoralization is said to have much to do with the watchful waiting policy in the wheat trade. News which normally would have price=- making effect is largely ignored. The market has encouragement in spots, such as aggressive buying by a large Eastern commision' house which recently was an active seller and the fact that where milling quality is ob- vious the moderate marketings of do- mestic wheat are readily absorbed. It would seem that the market re- quires only the continuance of renewed export interest to advance. Conditions for the movement of new wheat from the Argentine, however, are generally favorable now and it is yet to be seen how far the Southern Hemisphere can go in supplying the European demand. There are reports that stocks of Rus- sian wheat in Great Britain are rapidly diminishing and that Soviet shipments are greatly reduced, indicating a better demand for North American wheat. It was said that Belgium and Holland are showing more interest in hard wheat right at a time domestic seaboard hold- ings are believed to be rapidly dimin- ishing. Port Stocks. Continental European port stocks ad- mittedly are below those of a year ago, but those in the United Kingdom are still larger. = The corn market has been fairly steady despite the rather weak futures. Primary receipts for the season are only about half as large as a year ago. Many look for corn prices to be gov- erned largely by the extent of the daily arrivals. The few offerings have been mostly at prices a little above the mar- ket. Rough weather over the corn belt has been viewed as a constructive fac- tor, it being the belief that feeding on farms would be increased, while at the same time such movement as is now under way would be curtailed. There are some among the ecorn traders who blieve that any further ad- vance in price will materially ipcrease countrv offerings. Baltimore Markets Special Dispatch to The Star. BALTIMORE, Md., January 12.— White potatoes, 100 pounds, 75a90; sweet potatoes, bushel, 40a80; yams, barrel, 1.00a1.75; beans, bushel, 1.75a 2.50; beets, per 100, 2.50a3.50; Brussels sprouts, per quart, 10a20; cabbage, 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; tomatoes, crate, 1.00a3.25; eggpiants, crate, 1.50a 2.50; turnips, hamper, 15a27; apples, bushel, 35a1.25; grapeiruit, box, 1.25& 2.75; oranges, box, 2.25a4.00; strawber- ries, quart, 15a25; kale, bushel, 25a45. Dairy Market. Chickens, young, 18a20; Leghorns, 15a17; old hens, 15a2l; Leghorns, old, 15a16; roosters, 10al12; ducks, 12a33; geese, 15a20; Guinea fowls, pair, 25a50; turkeys, 16a26; pigeons, pair, 20a25. Eggs—Receipts, 549 cases; current re- ceipts, 15a19; hennery whites, 24a25; nearby firsts, 20. Butter, good and fancy creamery, 24 a28; ladles, 18a20; process, 22a23; store packed, 14. Hay and Grain Prices. ‘Wheat—No. 2 red Winter, export, no quotations; No. 2 red Winter, garlicky, spot, domestic, 60%s; January, 60%; February, 61%. Corn—No. 2 yellow, domestic, spot, 44a45; cob corn, new, 2.00a2.10. Oats—No. 2 white. domestic, spot, 35'5a36; No. 3, 2415a35. Rye—Nearby, 40a45. Hay—Receipts, none. New hay is starting to arrive in increasing quan- tities, but so far no official grading has been attempted, selling being strictly on merit. Demand for old hay slow and market is dull and quiet, with prices in buyers’ favor at a range of 13.00a 1650 per ton. Straw—No. 1 wheat, 8.50a9.00 per ton; No. 1 oat, 9.00a10.00 per ton. Live Stock Market. Cattle—Receipts, 50 head; light sup- ply; market slow. Steers—Choice of prime, none; good to choice, 7.00a7.75; medium to good, 5.50a6.75; fair to medium, 4.25a5.25; plain to fair, 8.50a4.00; common to plain, 3.00a3.50. Bulls—Cholce to prime, none; good to_choice, none; medium to good, 4.00a 4.50; fair to medium, 3.50a4.00; plain to fair, 3.25a3.50; common to plain, W. Jackson will be guests. 's 5:30 Edition, 3.00a3.25. Cows—Choice to prime, none; good to choice, none; medium to good, 3.75a 4.00; fair to medium, 3.2583.75; plain to fair, 2.50a3.25; common to plain, 1.50a 2.50 Heifers—Choice to prime, none; good to choice, 5.00a6.00; medium to good, 4.50a5.00; fair to medium, 4.0084.50; plain to fair, 3.00a4.00; common to plain, 2.50a3.00. Fresh cows and springers, 30.00a 60.00. Sheep and lambs—Receipts, 100 head; light supply; market steady; sheep, 1.08 a3.00; lambs, 4.00a7.35. Hogs—Receipts, 1,000 head; fair sup- ply; market steady, lights, 4.90a5.15; heavies, 4.50a4.85; medium, 4.9085.1 roughs, 3.25a4.00; light pigs, 4.50a4.90; | l (Copyright, 1931, Standard Statistics Co.) pigs, 4.75a5.15. Calves—Receipts, 50 head; light sup- ply; market steady. Calves 4.00a9.50. New York Cotton Special Dispatch to The Star. NEW YORK, January 13. cotton prices today were 2 to 6 higher in active trading. There brisk demand from frade buyers, and professionals were not slow to take size~ able commitments as well. Opening prices were: January, 6.43, up 4; March, 6.55, up 5; May, 6.71, up 5; July, 6.90, up 6; October, 7.15 up 6, and December, 7.27, up 2. LA points Was & Athens, Greece, has announced that i will dssue no more bus licenses.