Evening Star Newspaper, January 26, 1932, Page 15

FINANCIAL. CURB SHARES FIRM IN LIGHT TRADING Price Changes Are Narrow as Trading Drops to Low Level. BY JOHN A. CRONE. Special Dispatch to The Star. NEW YORK, January 26.—The Curb Bxchange today experienced the slow- eet trading in weeks, but prices ranged from firm to higher as offerings proved somewhat smaller than bids. The market Jeaders, like Electric Bond & Share, Cities Service, United Cight & Power A, Niagara Hudson Power, Middle West Utilities and United Founders, moved within limits yanging from ohe-eighth to one-quar- ter point. Chemicals, mines, motors and public utilities crowded out most other se- curities in the first half hour. Ameri- can Cyanamid B, Heyden Chemical and such gold mine shares as Wright Har- greaves, Teck Hughes and Hollinger Consolidated, and New York Rosario & Honduras, & silver issue, registered tri- fiing gains These movements scarcely had been completed when Mohawk Mining, one of the inactive coppers. came out with a net gain of 15 points. Hudson Bay Mining softened. By this time the re- ceivership proceedings against the Michigan Durant Motors had set in mo- tion offerings of Durant of Delaware which issue is listed on the curb. Ford Motor Limited, due to better buying in London, was more active and one time showed a small gain. Frank- lin did better following publication of its balance sheet. Stutx gnd later Cord firmed, after which the motor group settied down to a period of dullness. Inactive power and light shares pro- vided virtually all of the wide fluctda- tions in the first several hours. Kings County Lighting Preferred B, for in- stance, dropped 814 ints on its first sale this year, Utilities Power & Light B and Public Bervice of Northern Ill- inols made sizeable gains. Vick Finanelal Corporation ear] forecast the declaration of the regu- lar common quarterly payment, but it did not discount the fact that the company bought in the open market and retired during 1931 a total of 10.- 300 shares. Hereafter dividends will be declared semi-annually, the next meeting being scheduled for July. Aluminum Co. of America was more active than in recent sessions as traders heard that Pittsburgh interests were reaccumulating it. Great Atlantic & Pacific Tea, whose sales last week showed & gain over the corresponding period of a year ago, opened off nearly 5 points. The better tone of Pacific Coast Power and Light securities in the last few sessions is a result of buying emanating from the Coast. Heavy rains and snows there are not only giving sufficient water for irrigation, but also for power purposes. Hydro- Electric securities, perhaps reflecting this water power situation, ran up a point Brazilian Traction improved, though its December earnings were down 36.1 per cent from the same 1030 month and yearly earnings were off 24 per sent.~ Seiberling Rubber moved up 5 point, though other rubber shares iagged. Northern Pipe Line new shares | s0ld at 4'2. Gulf Oil of Pennsylvania showed & fimer undertone. Its Decem- bér production in Venezuela amounted 0 1,277,539 harrels against 1,960,350 in December, 1930, and the same fields in 1931 yielded 17.711,138 barrels against 22,800,330 in 1930. Firm quotations and slow dealings marked the opening of the exchange. Electric Bond & Share at 111, was unchanged, but Cities Bervice at 57x lost 5. Standard Oil of Indiana at 18% rose_%. Aluminum Co. of Amer- ica at 523 was off % Hydro Electric Securities advanced a point to 9. Electric Power Assoclates A at 8, Brazilian Traction at 113 and ‘Atlas Utilities at 6 each gained slghtly. The receivership of Durant Motors, Inc., caused that stock, which has been appearing in blocks of more than 10000 shares recently. to open at new low level. Ford Motor, Ltd., rose 1 to 5% BONDS ON THE CURB MARKET. 550 G & E 5'gs 71 ssociat Ravon b8 30 Bigs A ‘58 1As Tel Uil 8fs 44 © Bell Tel Can 55 B Bell Tel Can 55 C Can Hat Ry 4} A A Assg gagsaSorssenragazae senassRaassysaTnyee 2222277272 2 ZREREE 41 | settlement is expected in the very near papToTTy P g 222 th_ Galif Callf E: 3 SRR . | to have contributed to the rise and the | I Received Stocks sold In 100-sha: ~Prev. 1931.~ Stock and High Low. Dividend Rate. % 4 Alr Investors vtc. 3% Allled Mills Inc. 48 Aluminum Co of Am Am Austin Car. . AmCitPw& LtB... Am Com Pow A. Am Com Pow B. Am Corp.... Am Cyanamid B, . Am Founders. . Am Gas & Elec (31). Am Laundry Meh(2) 50; Am Salamandra. Am Superpower Am Superp pf ( Am Superp st (6 Am St Pub Serv A... Am Transformer Sales. Add 00. Open. ¥ W 2o 58 62% 202 S & | Arkansas Nat Gas. 1 Arkans NatGasA. .. Ark N G cu pf (60c). Armstrong Cork. ... ABSOG&EL (A) b5 % . A350 G & Bl ct (8 Atlas Uil Corp Atlas Util pf (3) Atias Utilities war Auto Voting Mach Auto Vot M Co pr pt.. Bellanca Alr v.t.c.... Beneficial 1 L (1%).. Blue Ridge Corp. ... Blue Ridge cv pf(a2) Brazil Trac Lt&P(1) Buft N& E P 1st (5). Bunker Hill & Sull.. Ccampe Corp...... Canadian Marconi. Carih Syndicate. Celluloid Corp 1st pt 160 Cent Puh Sve A bo%. Central States Elec. . Cities Service (g30¢) Cities Serv pf (6)... CitSvP&Lpf (7).. b0s Clev Bl Illum (1.60). 1 Columbia Pie vte. 6 Colum G&E v pf(5). 50s Commwith Kdison (8 25 Cmwlth & Sou war. . Comstock Tunnel. .. Consol Auto Merch. . Consol Copper...... Con Gas Balto (3.60) Consol Royal (20c).+ Cont Shares pf (B).. Cord COrp. v euuses Creole Petroleum. Cresson Consol Crown Cork Intl (A) Cusi Mex Mining. Deere & Co. . De Forest Radio Detroft Alrcraft Duke Pow (5). Duguesne Ga 4 Durant Motors. ... 4620s Duval TexSulwi... 2 East G & F Assoc. .. Kastern Sta Pw pt B.525 st Util Assoc (2). t Util Assoc cv.. dison Bros St(50¢) Educational Pic pf.. Eisler Electric...... Elec Bond&Sn (b6 %) Elec B & Sh cu pf 5. Eleo B & Sh pt (§) Eleo Pow Assoc (1) . Elec Pow Ass00 A (1) Evans Wallow Lead. Europ El Ltd A (30¢) Fairehild Aviation. . Federated Capita Federated Metals. ... Ford Motor. Can., A. Ford Mot Ltd 36 3-5e Foremost Dalry Pr Foremost Fabrics. Franklin Mg. GELd rts(p36 3-5¢) Gen G&E cv pf B(6) 2608 Gen Empire (1) 1 Gen Pub Sve pf (6).. 108 Gen Theat Eqcv pf.. 28 Glen Alden Coal (4). Goldman Sachs Gold Seal Elec new. Goth Knitback Mch. Graymur Corp (1) 114 Grt A&P Tean v (6). 108 140 Groe Strs Prod vte. . Gult Oil of Penn: Hackmester Lind. 6 Hazeltine Corp (1)..5260s Hetla Mining (40c). 1 Heyden Chem (2)... 1 Hollinger Gold t70e. 5 1 1 ‘ . 9 1 1 2 4 2 1 4 5 4 1 4 2 6 4 . 3 6 29 1 s 8 5 1 868 1 89 18 Y s excent those desigmated by letter “0." | THE EVENING STAR, WASHINGTON, D. C. NEW YORK CURB EXCHANGE by Private Wire Direct to The Star Office. ~Prev. 1931.— High. Low. 17 54 EBtock and Dividend Rate. Hudson Bay M & S.. Hydro El Securitie Hygrade Food Prod. 1li Pow & Lt pt (6).. Imp Ofl of Can (50c) Insurance Security.. Intetcontinent Petn, Int Hydrocvpf3%.. Int Petroleum (1) Intern Superpr (1) 4 Int Utilitien B... In'state Equity ev pf. Leonard Ofl. Lindsay Light 5 Lone Star Gas n 88¢. Long nd Lt (80¢) Louisiana Lan & Ex. Mass Util Assoc. . Mayflower Asso (2). Mid West Ut (b8% ). Mohawk Mining (1). Moody’s In Svc pt pt. Nat Bd & S Corp (1). t Pow & Lt pf (8). t Rubber Mach. .. t Sh T Sec A t60c. w Bradford Oil. .. NY&Hondur Ros(12) Niag-Hud Pow (40¢) Niag-Hud Pow A w.. Niag Share(Md) 30e. Nor Am Util Sec North Pipe Line N W Engineers (1).. Ohlo Copper. PacG& R 1stpf1%. Parke Davis (11.65)., Pennroad Corp (40¢) Pilot Rad Tube A. Pion G M Ltd (12¢).. Pittsbgh Plate G (2) Premier Gold (12c).. Producers Royalty. . Pub Sve,N 1lin p(8) . Pub Util Hold war Pub Util Hold xw... Radlo Products. Raliway & Lt Se Reiter-Foster. RHich. Low Close 4 5314 5 © DO O @ S - S B 0 A 00 RSN IO B it D e MG SR ) » e 1S 80 1 O S RO 4 O3 4 OO0 58 e B %0 Reynolds Invest Rossia Intl Corp St Anthony Gold St Regis Paper Schulte Real E: Segal L & Hdwr. Seiberling Rub! Selected Industries.. Sle Ind alctfa(5%).. Sentry Safety Cont.. Shattuck Den Min. .. Shenandoah Corp pf. Simmons Board pf. . Smith-Corona vtc. .. Sni Viscosa rets SoCal Ed pf B (1%). Sou Cal Ed pf C(1%) . Unfon Gas. . nish & Gen ( Stand Invest cm pf.. Stand Motors. Stand Of) of Ind( and Oll of Ky 1.60. and Silver & Lead. Stutz Motor Car Swift & Co (2).. Swiss Am E1 pf (8). ‘Tech Hughes (80¢c) Tob Prod of Del wi. Trans Air Trans Trans Lux DL P Unit Founders. Unit Gas Corp . Unit Gas Corp war., Unit Gas pf (T).eess Unit Lt& PwA (1), Unit L & Pwr pt(§ Unit Milk Prod. U'S & Int] Secur. U S Inter Sec 1st pt.. Unit Verde Exten (1) Utll Po & Lt (b10%) Ut PEL(B)cfs b10% Util Bquity pf(5%). Ut & Ind ..ovinane Vick Financial (30e) "l Wenden Copper WIwthF WLtd29 3-5¢ Wright Harg (12%¢) 2 RIGHTS—EXPIRE Com Edison Feb 1 28 14 1% 1% PubSveNII .Feb 1 18 1% 1% 13 1% 14| Dividend rates in doliars based on Iast quarterly of semi-an- 713 | nual payment. *Ex dividend. fPartly extra. IPlus 4% in stoek. 4 | ®Payable in cash or stock. bPayable in stock. e Adjustment % dend. fplus 6% in stock. €Plus 6% in stock. hPlus 1% in 6% Clock. 1Plus 2% in stock. k Plus 10% in stock. m Plus 3% in 4% | stock. nPlus 8% in stock. D Paid iast year—no resular Ferssras poooe F 5 FwIREFrE - e - - ¥ F ORF H [ JOPIUINI 43 " @ s 2SS VE-JUTFIIOTeIOTS - T 1 o | ™M 141 l‘(?":‘ 115 294 Everybody’s Business tal Immediate End of Bank Failures Seen Resule of Reconstruction Finance Corporation. BY DR. MAX WINKLER. Special Dispatch to The Star NEW YORK, January 26 (NANA). | —The Reconstruction Finance Corpora- tion is expected to commence function- ing at once. since no difficulties are an- ticipated in connection with meeting initial requirements through the issu- ance of Treasury notes amounting to $350,000,000. Of this total $60,000,000 will 'be used to take care of maturing | Treasury bills, the remaining $290,000,- 006 being placed at the disposal of the corporation One of the immediate results, and probably the most significant, should be the reduction and eventual elimination of bank failures, which seem to have been the main cause of liquidation. | Despite the activities of the National Credit Corporation, banks which closed their doors during the first three weeks | in January numbered 240, with de- posits totaling $120,000,000. It is hoped and expected that the new enterprise | will be more successful. The death of Paul Moritz Warburg chairman of the Bank of Manhattan Trust Co. removes from the fleld of finance one of the world's leading au- thorities on banking and currency | problems ~ Moreover, Mr. Warburg's death comes at a time when his serv- | jces could have been used to the dis- | tinct advantage of the Nation, for | whose sound currency system he had | done s0 much. | to thi fa is Mr, Warburg was thoroughly con- versant with all aspects of international finance, and was to a very large ex- tent responsible for the creation of the Pederal Reserve 8ystem, which, despite | many shortcomings, may safely be said maintenance of the prestige of the United States dollar. B a measure regrettable that the conference convened at Chicago to settle the railway labor question should be drawn out unnecessarily. A final future, The union leaders seem prepared to recommend acceptance of & one-year | wage cut of 10 per cent as a matter of expediency, even though they deny the | justice of such reduction. It is some- what difficult to comprehend the view held by labor, especially when every other branch of the transportation sys- tem has been obliged to accept reduc- tons amounting to substantially more than the proposed 10 per cent cut in wages. Although developments in the Far East are not regarded as having any important bearing upon the economic and financial situation in the United tates and elsewhere, the likelihood of increased international friction over the Manchurian situation cannot be viewed with complete indifference, While uncertainty in the securities markets may not be ascribed entirely to the Par Eastern complications, it is not impossible that they are at least a | cl | M made on the sale of Pere Marquette stock to the Chesapeake & Ohlo. by The Fa ment store, resumption of major part of con ments in 1930 and 1931 was paid out of earned su the company the cash on hanc the A. E. Nettleton pated by Henry W contracts which es retail outlets for men's crease in the oper go into effect at once, Russian propaganda paradise, is resortinz (o what is gen- | erally looked upon as | decree the taxes on all incomes rubles per annum exchange this figure the basis of what one can get ruble outside Russia (e figues 1o sun stantially lower for house other purposes during the current year. 'Cnnyrun}l{ | By the Associated Press customer for the crop the smallest quantity country during the average of 18 per | crops, this figure dropping to 14 per cel | sold by public auction Netherlands. (Quotations furnished by W. B. Hinbs & Co.) | London, pound.... Londco, ol Rome. | Athens. | Vienna Budape pe Oslo, | Btocknoin, Chicago & St. Louis Railroad will re- | quire aid from both the Railroad Credit Corporation and Finance Corporation to meet interest and maturing obligations this year. nual | 3,500,000, | deficit’ last year was $2,310,412, without the Baltimore Markets Recanstruction An- interest payments approximate whereas the road's actual Special Dispatch to The Star. BALTIMORE, Md., January 26— White potatoes, 100 pounds, 75a1.1 sweet potatoes, bushel, 40a80; yams, { barrel, 75a1.00; beans, bushel, '1.25a |2.25; ‘beets, per crate, 1.50; brussels If account is taken of this special | sprouts, per quart, 8al5; cabbage, king 1into consideration the profit income, the deficit after all charges |hamper, 1.00a1.50; carrots, per bushel, amounted to only $210,412. 1.00a1.15; caulifiower, crate, 1.00a1.25; - | celery, crate, 126a2.50; eggplants, Satisfactory profits should be earned |crate, 1.50a2.75; kale, bushel, 25a40; e g Chicago depart- | onions, per 100 pounds, 3.00a4.00; pep- dividends paid Wwith |pers, crate, 1.50a2.75; spinach, bushel, 1al buying, according | 25a90; squash, bushel, 1.50a2.50; toma- president | toes, crate, 1.25a4.00; turnips, hamper, 1g on the omisgion of divi- | 10a20; grapefrult, box, 1.25a2.50; apples, Kelly points out that the |bushel, 35a1.50; oranges, box, 2.00a n_ dividend pay- |3.75; strawberries, quart, 20a25. D. P It was also stated | no bank loans and as more than double nt bills. Material extension of operations of Co., shoe manu- N. Y., is antici- Cook, president. It Dairy Markets. Chickens—Young, 18a20; Leghorns, 14217; old hens, 14a19; Leghorns, old, 14al5; roosters, 11a12; ducks, 12820; geese, 13a17; gulnea fowls, pair, 25a60; | turkeys, 15a30; pigeons, pair, 20825 Eggs—Recelpts, 701 cases; current re | ceipts, 17a171; nearby firsts, 18a19} understood the company has obtained | Southern firsts, 17a17};. I important new | Butter—Good and fancy creamery, h0es. The in- | 22a25)2; ladles, 17a18; process, 2082 ting program is to | store-packed, 12a12%5. Mr. Cook states. Live Stock Market. Cattle—Receipts, 75 head; light sup- ply; market steady. Steers—Choice to prime, none; good | to choice, 6.00 to 6.75; medium to good. u | 475 to 8.75; fair to medium, 4.00 to 8. S. R, will| 475; plain to falr, 3.50 o 4.00 of additional 'mon to plain, 3.00 to 3.50. which exceed 900 Bulls—Good to prime, none; good to he par value of | choice, none; medium to good, 4.00 to Is about $450. On | 4.25; fair to medium, 3.50 to 4.00; plain to fair, 3.25 to 3.50; common to plain, 3.00 to 3.25. Cows—Choice to prime, none; good to choice, none; medium to good, 3.75 to 4.00; fair to medium, 3.5 to 3.15; plain to fair, 2.50 to 3.25; common to plain, 1.50 to 2.50. Heifers—Choice tp prime, none; good to choice, 5.00 to 5.50; medium to good, 4.50 t0 5.00; fair to medium, 4.00 | to 4.50; plain to fair, 3.00 to 4.00; com- mon to plain, 2.50 to 3.00. Fresh cows and Springers, 30.00 to 60.00. | 7 "Sheep and lambs—Receipts, 50 head; light supply, market steady: sheep, 1.00 to 3.00; Jambs, 4.00 to 7.40. Hogs—Receipts, 1,000 head; light supply, market lower: lights, 450 to | 4.95; heavies, 425 to_ 4.50; medium, 465 to 4.90; roughs, 2.75 to 3.75; light pigs, 4.00 10 4.50; pigs, 4.25 to 4.50 at needed to pa cturers, of Syracuse Soviet Russia, w according to | the workman's asures adopted head of tt C countries. , head of the U - 2 introduction i com At The new revenu o provide funds construction and various 1932. by the Nopih ewspaper Alliance. Inc URCHASES OF TOBACCO FROM SUMATRA DROP American ) The United States is ¢ Sumatra tobg 1930, latest vear e available, our | mounted to 29705 1% as & which sta- rchases of 66 pounds. sorbed by this last ears. 1919 to 1923, in- ates bought an { the annual lg\l.\r;ngm(elmuglx;:\vx(; ply; market higher; calves, 4.00 to 9.50. Hay and Grain. Wheat—No. 2 Ted Winter, garlicky, spot, domestic, 60%: January deliv- ery, 60%; February delivery, 60%. ‘Corn—No. 2 yellow, spot, domestic, 44a45; cob corn, new 2.00a2.10 per barrel. Oats—No. 2, white, domestic, 35a36; No. 3, 34a35. Rye—Nearby, bag lots, 40a45. Hay—Receipts, none. General hay market quiet. Receipts ample of timo- thy, but good, mixed hay scarce and bringing premium. Prices range from $12 to $16.50 per ton, as to grade and kind. latter figure for choice clover mixed. The poorer grades of timothy are irregular in price. Straw—No. 1 wheat, 8.5029.00 per + | ton: No. 1 oats, 9.00a10.00 per ton. ce nt during the next five vears The tobacco grown in Sumatra is held in the FOREIGN EXCHANGE, ominal gold e 8665 Valu " arich adrid crown PARIS BOURSE PRICES, Galves—Receipts, 50 head; light sup- | TUESDAY, JAN (ADVERTISING HELD AID T0 INDUSTRY Federation Head Urges Busi- ness Men to Tell Mes- sage to Public. Special Dispatch to The Star. SYRACUSE, January 26-—Company after company turned the hard times of 1931 into outstanding profits, using ad- vertising as their tool, Gilbert T. Hodges of New York, president of the Advertising Federation of America, member of the executive board of the New York Sun, asserted at a dinner last night for the Advertising Managers' Bureau of the State Publishers’ Asso- clation and Advertising Club of Syra- cuse. The dinner followed a business ses- sion_at which advertising experts ana- lyzed current trends. Charles W. Mears of Cleveland, an advertising merchan- dising counselor, conducted a clinic and discussed “How Newspaper Advertising Can Be Made More Effective Through Merchandising.” Stresses Duty of Newspapers. Jerome D. Barnum, publisher of the Post-Standard of Syracuse, emphasized the duty of the newspaper in the pres- ent business cycle in presenting con- structive, informative reports of current conditions and activities. The news columns today, Mr. Bar- num declared, are intensely interesting and more appealing to the reader than at any other time since the World War. I. A. Hirschmann, director of pub- licity for Lord & Taylor of New York, said in his address: “I am more firmly convinced today than ever that the newspaper is the most direct, most economical medium for the selling of merchandise by the retailer. And this is not mere guess- work. It is the result of experience in the expenditure of millions of dollars for publicity. How much the news- papers themselves have contributed to- ward the general good will of depart- ment stores is another matter. * * * “My suggestion, gentlemen, is for you to spend & little of the time you waste drafting charts of your circulation in Upper Goofus Town and your suburban circulation and all those beautiful ples of red and blue and green and yellow you insist on dedicating to our waste baskets and make a visit to the whole- salers. * * * Explain to them how casy it is for them to slice & lump or two from that huge appropriation for magazine advertising, * * * tha huge appropriation for radio crooners, and show how they can make use of that money to work through the re- tailer, who is close to their market, closer than they can ever come. Show them how they can use the daily paper —the greatesi advertising medium of all time—to drum up real and immedi- ate and lasting interest in their prod- uet.” Barclay Newell of the J. N. Adams Co. of Buffalo and other advertising ex- perts also made addresses. Advertising Turned Tradd Tide. Mr. Hodges in his dinner speech called on business men to follow the innumerable examples he offered, and by renewed energies turn 1932 into a successful year. Citing instance after instance of courageous and aggressive merchandising which turned the tide for individual companies, he pointed to advertising as their outsanding weapon in the battle. Mr. Hodges has been identified with organized ldvertmx\? since 1912, when he was president of the Agate Club of Chicago. He was a director of the Advertising Club of Chicago and formerly was president and a director of the Advertising Club of New York. Refusing to assume “the somewhat frayed robes of a prophet,” Mr. Hodges, none the less, pointed last night to a number of “helpful possibilities” on the world horizon, predicting that “health- fer financial days may come back sooner than now seems possible.” One of the most hopeful signs he sees is the long postponement of purchases which now should begin to force new buying. New York Cotton Special Dispatch to The Star. NEW YORK, January 26.—Opening cotton prices today were 1 to 5 points higher, Trading was in moderate vol- ume Foreign demand was small, but trade buying was fairly brisk and offer- ings- from commission houses were in falr_amount. | Opening prices were: March, 6.70, up 2; May, 689, up 5; July, 7.04, up 2; October, 7.29, up 4; December, 7.44, up | 8, and January, 7.48, up 1. NEW ENGLAND SHbWS i ELECTRICAL INCREASE | Special Dispatch to The Star. BOSTON January 26.—Northern New | England still continues to show an in- | crease in electrical consumption over | last year December reflecting an in- | crease of 126 per cent with the full | year’s gain 19.7 per cent. This is shown by figures prepared by the New England Public Service Co. part of the Middle- West Utllities System. Aggressive efforts of the company to stimulate the domestic use of energy alded somewhat in offsetting slackened industrial consumption. December of this year showed a gain of 6 per cent in residential output over last year. Conditions generally are irregular Manufacturers regard reports and in- quiries from retail trade which reflect low inventory as a favorable omen toward new buying just as soon as a definite trend upward is assured. Gold Coverage Improves. BERLIN, January 26 (#).—The gold coverage of the Reichsbank was report- ed today as improved eight-tenths of 1 per cent today, to 26.4, in spite of a loss of 14,309,000 marks in gold and foreign exchange. Note circulation had con- tracted approximately 183,572,000 marks and customers’ bills were reduced 213,- 000,000 marks. STOCK AND BOND AVERAGES By the Assoclated Press. From Yesterday ocC 50 Industrials. Today. .. Previous day. Week ago Month ago Year ago. . Three years ago. Five years ago. High, 1931-32 Low, 1931-32.... High, 1930 Low, 1930 High, 1929 Low, 62.5 20 Industrials. 68.9 Month azo. Year ago... Two years ago. . Three years ago. High, 1931-32 ' CR | was knowledge that the open interest in UARY RAILROADS ARE Wabash, First Large Position With BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 26—Tt is of interest that the first important appli- cation to the Reconstructive Finance | Corporation for relief comes from a ratiroad in receivership—the Wabash, | which went into bankruptey about | three months ago. | " The receivers for this carrier are asking for a loan of $18,500,000. They would expect to repay it in three years, which may suggest that they expect the road to be reorganized in that period and placed on a basis where it can take care of its obligations. The loan requested is to meet commitments due during 1932, of which the largest is & bank loan of $9,750,000 negotiated last year. Loans Outstanding. In this connection it may be pointed out that it is the existence of loans of similar character by the carriers which have been responsible in large part for | the apparent discrepancy between the | total of $405,000,000 in maturities, | which the railroad presidents have | | stated fall due this year, and the amount of $181,000,000 which the rail- road unions in their reply of last Sat- urday accept as accurate. There are | known to be large loans standing | against & considerable number of car- riers who were compelied to go to the | banks to finance their requirements | | when the bond market was closed to them. There are other differences in the figures of the railroad presidents and the railroad unions that are sub- ject to satisfactory adjustment if Closely analyzed. In making ‘loans to applicants the Reconstruction Corporation takes such collateral as may be offered. This goes into its portfollo, where much of it will be “frozen” for an indefinite period. The security which the Wabash offers the Reconstruction Corporation for its loan includes both liquid and unliquid collateral. For instance, there are about 259,000 shares of Lehigh Valley Rail- rond common stock. This was the | stock #rchased by the Wabash some | years agd, when the Pennsylvania Rail- | road was attempting to bring the| FINANCI CONFRONTED BY HEAVY LOAN MATURITIES Carrier to Ask for Government Credit, Is in Same Many Others. ‘Wabash and the Lehigh Valley under its control. The present market value of the 259,000 shares is slightly under $4,000,000. At the high price of 1931 it was $15,600,000, and it is fair to as- sume that within the three-year term of the proposed loan the market value of this stock might fitself rise to & point where it would be sufficient to pay off the entire $18,500,000 loan to the Wabash. This is a part of the col- | lateral that may be regarded as liquid. Its transfer from the Reconstruction | Corporation would probably become a matier of negotiation when the four- party consolidation railroad plan now before the Interstate Commerce Com- mission becomes effective, for this allo- ;tes the Lehigh Valley to the Nickel ate. The Wabash also offers as security “a direct lien on all raliroad property and franchises covered by and em- bodied in the refunding and general mortgage, dated January 1, 1925, prior in all respects to the lien of the sald mortgage, but subordinate to senior and underlying mortgages.” In other words, the lender would have a claim on over 2,000 miles of railroad subject to liens that are senior and which underlie the refunding and general mortgage. The position, therefore, of the Reconstruc- tion Corporation is a creditor when the reorganization plan of the Wabash is set up would be one with which the re- organization bankers would have to deal and whose influence would be quite important on the general scheme. Creditor Position, From this it will be recognized that the creditor position of the Reconstruc- tion Corporation during the period of business recovery and of financial in- tegration may be such that it can de- termine the reorganization’ plans of many corporations that will come to it for relief in the next few months. Therefore it is not improbable that the ultimate liquidation of the Reconstruc- tion Corporation may be as long in its process as that of the organization set up after the war for exclusive purpose of making loans to the railroads under the authority of the director general of the War Finance Corporation. Some of these loans are still outstanding. (Copyright, 1932.) UDE OIL OUTPUT |AGAIN SHOWS DECLINE' 33,758 Barrels Sliced Off Daily Average for the Week Ending January 23. By the Associated Press. TULSA, Okla, January 26.—The crude ofl output of the United States dropped another 33,753 barrels in the daily average for the week ending Janu- ary 23, to reach a low total daily flow of 2,157,630 barrels, the Oil and Gas Journal estimates. Oklahoma production was down more than 30,000 barrels, totaling 410,935 bar- rels daily as compared with a previous | flow of 441,095 barrels. Texas operators, bucking the output from new well completions in East Texas nevertheless held the increase to 18 barrels in the dally average. The out- put was 848,464 barrels as compared with 848,446 barrels daily in the pre- | ceding week. [East Texas production dropped 340 barrels in the average to 332,781 barrels daily. | California’s output was reduced 1,500 | barrels to 506,750 barrels daily. Kansas production was down—from 98,945 barrels to 97,620 barrels daily. Eastern production was down 1,000 bar- rels at 121,000 barrels. Rocky Moun- | tain production was down—{rom 81,782 barrels to 81,044 barrels daily. Grain Market 1 By the Associated Press. | CHICAGO, January 26—Downturns | in grain prices early today accompanied | snowfalls that covered practically the entire domestic Winter wheat belt. Ar- gentine shippers were reported as con- | tinuing to press offerings of Wheat abroad. Opening Y4a% lower, wheat afterward held near the initial range. Corn start- ed 'ga% off and later fluctuated but little | A feature of the wheat market was | dearth of selling pressure here despite | weakness of Liverpool quotations. Some | authorities ascribed this to the hullish influence of Government financed hold- ings of May wheat estimated at 25,000,- 000 bushels and to Eastern speculative holdings believed to aggregate 10,000,- 000 bushels. Another sustaining factor all future deliveries of wheat here lacked volume, totaling but 112,000,000 bushels. It was asserted that unless the princi- pal holders liquidated, the market was likely to keep relatively firm within moderate limits. Bears in wheat stressed reports mean- while that Southern Hemisphere coun- tries were competing actively in restrict- ing import markets, and that large sup- plies in Argentina especially were a dominant influence It was also men- | sioned that friction at Shanghai between | Japan and other countries appeared likely to curtail Oriental wheat pur- chases for at least the time being. Ad- mission was made, however, that in- creased buying on the part of import countries was to be expected during coming months. Corn and oats largely followed wheat. Provisions sagged, influenced by hog market downturns. Dumferline, Scotland, is offering in- ducements to Continental silk manu- facturers to establish factories there. s 5:30 Edition. 20 Utilities. 83.5 ARLINGTON-FAIRFAX RAILWAY EARNINGS UP Net Income for 1931 Sets New High Mark, Dr. J. Parmelee Says in Report. Special Dispatch to The Star. CLARENDON, Va., January 26.—De- spite many handicaps the net income of the Arlington-Fairfax Railway Co. for the year 1931 reached & new high mark, according to report of President Julius Parmelee to the annual meeting of the stockholders here yesterday. Earnings of the company for the year are given as $8447.39, as compared with $2,405.17 for the year 1930. ‘The good showing made by the com- pany, the report states, is primarily due to the exercise of the greatest economy and efficiency of opefation on the part of the management. Continuing, the report states: “The operating revenues in 1931 were ef- fected by two unfavorable factors. First, the prevailing business depres- sion, which reduced travel on cars, par- ticularly on the part of those who normally use the service for shopping or recreational purposes; and second, obstacles in the way of efficient opera- tion through the terminal area in ‘Washington, especially after the Fed- eral Government began to tear down the bullding in the area and to exca- vate around and under our tracks. This was aggravated by road changes at the Virginia end of the Highway Bridge, in connection with widening of U. S. Route No. 1 and the development of the new boulevard to Mount Ver- non. These changes required shifting of tracks and greatly hampered opera- tions. Under all of these circum- stances, your board of directors feels that the company made an excellent showing.” Directors were elected as follows: P, E. Dewey, Mrs. K. H. Echols, Howard B. Fields, Dr. J. B. Gould, W. R. Gray, Charles T. Jesse, Ashton C. Jones, Harris Levy, Jullus Parmelee, Carroll C. Shreve, Dr. Frank T. Stone, Dr. T. M. Talbott, B. M. Smith and R. Walton Moore. Officers will be elected by the directors at the February meeting. — ANNUITIES CONCERN REPORTS BEST YEAR ‘The Fidelity Investment Association, devoted exclusively to the granting of annuities, reports that 1931 constituted & record year for the writing of annuity contracts, resulting in the issuance of a total of $54,252,000, an increase over the previous year of $6,368,000, or 13.3 per cent, while resources of the associa- tion advanced from $25,047,124 at the beginning of the year to $29,151,825 as of January 1, 1932, a gain of $4,104,701. The balance sheet of the company shows securities to the amount of $17,- 651,800 deposited with State depart- ments for the exclusive protection of all contract holders, and loans to contract holders, secured by their contracts held by tshe company 8s collbteral, of $8- | 917,981 NoOTES Member of the Washington Real Estate Board the A »3s A—15 STEEL DIRECTORS CONVENING TODAY Financial World Watches Keenly for Action on Common Dividend. By the Associated Press. NEW YORK, January 26.—The eyes of the world of finance were riveted upon & suite of unpretentious, some- what old-fashioned offices, overlooking Trinity churchyard, at Broadway and Rector streets, today. | Here the directors of the United States Steel Corporation were called to convene at 2:30 pm. to receive the quorterly earnings figures and to de- cide upon the quarterly dividend What Wall Street wondered was: Would this august directorate, headed by J. P. Morgan, chairman, consider the business outlook sufficiently prom- ising to justify payment of another quarterly disbursement of $1 a share to common stockholders? Or, in view of the big deficit incurred by the world's largest steel maker in 1931, would they feel it prudent to omit the payment altogether, as they did in 19152 Or would they compromise on a reduced payment, possibly 50 cents? | _Another matter which interested | Wall Street and the steel trade keenly | was the possibility that a successor to | James A. Farrell as president might be | announced. Mr. Farrell. feeling that | the burdens of being operating head of | this gigantic corporation should be | shifted to younger shoulders, will retire April 18. The Finance Committee, headed by Myron C. Taylor, was to meet in ad- vance of the gathering of the full di- rectorate, to make its recommendations. The Steel Corporation, in keeping with its rigid practice in these matters, had allowed no intimation to leak out from official sources as to what action might be taken on the dividend. Expectation in usually well informed quarters was that the directors would be guided by the outlook for the steel industry for 1932, rather than by the unprofitable operations of 1931. Steel production has shown gradual expan- sion since the turn of the year, but the industry is still working at less than one-third of capacity. One theory held was that the corpos ration will continue to pay common dividends so long as it maintains a balance of cash or equivalent of as large as $100,000,000. Curregt cash balances are believed adequate %o per- mit another payment of $1 a share on the approximate 8,700,000 shares, and maintain the $100,000,000 minimum, At the end of 1930 the corporation had | cash or equivalent of $197,000,000. Wall Street estimates, based on operations for the first nine months, indicate that a deficlt, after payment of common and preferred dividends, of around $50,000,000 was incurred for 1931. BANK OF ENGLAND T0 REPAY CREDITS Thirty Million Pounds Will Be Paid to Lenders at New York and Paris. By the Associated Press. 3 LONDON, January 26.—The Bank of Enflnnd announced last night that it will_complete repayment at maturity on February 1 of £30,000,000 in credits granted to it by the PFederal Reserve Bank of New York and the Bank of France. This means that the whole of the £50,000,000 granted last August in equal portions by the Federal Reserve and the Bank of France will have been re- paid at the beginning of next month. The credits were raised to buttress the pound sterling and originally were to have expired on last October 31. At the end of October, however, the bank announced that it had arranged to pay £20,000,000 and that the lending banks had extended the balance to the equiva- lent of £15000,000 each for three months. The announcement at that time said, “In part provision of the balance, re- payment of which was proposed by the Bank of England, the sale of £15,000,- 000 in gold bars has been artanged.” Last night's announcement said re- payment would not involve any re- duction of the bank's gold reserve. It was understood in financial circles that the Bank of England has not found it necessary to ask that facilities be granted for further drawings either in New York or in Paris. S s SIAMESE INTERESTED IN AMERICAN PRODUCTS BY the Associated Press. ‘The Commerce Department has been advised the recent visit of the King of Siam to this country has kindled Siamese interest in American products. The event was labeled as one of the most outstanding of the year from an economic standpoint. Plans for the creation of a depart- ment of commercial intelligence, entail- ing a long-time program for the de- velopment of agriculture in Siam, was likewise stimulated by the visit, the ad- vice said. Although Siam's foreign trade de- clined drastically in 1931 following & similar drop in the last half of 1930, much of the surplus overhanging the markets of the country at the begin- ning of the year was reported as liqui- dated, and the general position now was held “fairly good.” FIRsT MORTCACGE O NSISTENT earnings . . . & liberal yield with principal soundly secured; certain income; and never a deviation from the factors of safety that protect your investment. Permit us to offer our facilities for placing of your in- vestment funds. H. L. Rust Company 1001 Fifteenth Street National 8100 Low, 1931-32, High, 1930. Low, 1930 High, 1929, .. Low, 1929 contributory factor. It will be interest- | U. 8. TREASURY CERTIFICATES ing to learn of the Japanese attitude | (peporied by chas. D, B, in connection with the forthcoming | Rate-Maturits arney disarmament conference | 3% June 15 With fixed charges for 1031 covered | },** Bebt only about one-third, the New York, | 3} Bn?;. ’ RIS, January 26 (P).—Three per ce:? rentes, 79 francs 10 centimes. Five per cent loan, 101 francs 65 cen- e on London, 87 francs 97! X8 he dollar was quoted st 35 centimes. 1 Ham ES, Prussia_Elec 65 '5 gexon Pub Wk b5 32 ww—With warrants 95.3 X . 90.4 100.8 (Copyright. 1932, Standard Statistics Co.) Terni Soc 8'ss A 83 W Without. wATTARL. N Wi—When issued. centimes. francs 41%