Evening Star Newspaper, February 1, 1932, Page 15

FINANCIAL. THE EVENING STAR, WASHINGTON B Q. MONDAN, | W1 BRUARY 1, 1932 FI NANCPAL: CURB STOCKS GAIN IN BRISK TRADING Leading Shares Advance as| Buying Demand Increases. Utilities Irregular. BY JOHN A. CRONE. ted by Chicago and by in the Fa w nt of overseas foreign Shanghai, operating ccn- wer i Power led gener Imperial moved Razor Firm Profits YORK, February 1 (#).— Razor C 028, eq st $454,87 3,629 in 1930, BONDS ON THE MARKET. CURB | serve existing en | joi led to thaw the country ou { cording to Loui | eral counsel of the War Finance Corpo- | at present nable to come again to the assistance NEW YORK CURB EXCHANGE Received by Private Wire Direct to The Star Office. Stocks sold In 100-share excent the Prev 1931.~ Stock and High Low Dividend Rate. 1% Aero Supply B.. Agfa Ansco pf.. Ala Power pf (6) Allfed Mills Inc. Aluminum Co of Alu Co of Am pf (6). Alum Goods (1.20).. Am Austin Car...... Am Ciear Co AmCitPw & Lt B Am Com Pow A. Am Com Pow B. » Am Cyanamid B. uitles. .. Am For Pow war.... Am Founders Am Gas & Eleo Am Lt & Trac (2%). Am Meter (3). 5 Am Supsrpower. Am Utll & Gn B vte. Am Yvette Co.. Inc... Appalachian Gas Appalachian Gas wr. Arkans Nat Gas A Asso Elec Indus Ltd ASSOG&EI (A) b5% Ass0 G & El et (8). Atlas Util Corp Auto Vot M ev pr pf. Benefictal | L (1%). liss Co(EW) (b8%) Blue Ridge Corp. . Brazil Trac Lt&F BritATcou B 1.13 3-5 ana M Kubwa 4+ Cable Radlo T vtc. Canadian Marconi. Carnegie Metals Cent Pub Central Centrifug Pipe (60c) Cities Service (g30c) Citles Serv vf (6). CitSVP&Lpf(6).. 5 Claude Neon Lts Inc 2 Clev EI 1llum (1.60) 1b Aluminum Uten 4 1 233, 918, 408 Con Gas Balto (3.60) Consol Gas Utility A Co res Cord Corp. Curtiss Wright war. Darby Petroleum 3 Deere & Co. ... De Forest Radio. Derby Oil Refining. Detroit Alrcraft. . v Corp (4 Dubilier Cond & Duquesne Gas. . ant Motors icher Lead. 10s 18 1 4 £l 30nd&Sn(b6%) 256 ElecB& Shecupt5s.. 3 Elec B&Shpf (6)... 2 Elec Pow Assoc A (1) 1 Elec P & Ltop war.. 1 G & Feupt(7). 508 30c) 1 1 Golaman Sachs 7 At&Pac Tea pf(7) 20s f O1l of Penr 2 nester Lind Hamiiton Gas v.t.c... Hudson Bay M & ble O en Pow & Lt pt (8)..450s 6 )¢ Can (5 11 149 1 1 Add 00. Open 63 - | ~Prev 1931.~ | High. Low. High Low Close | 35 9% 2% 1% 2% ™ 441y 441 4dh 80 9% 4 4 5215 50 63 102 % 126 2 gnated by letter 13, 4l 9% 4 1 24 Lehigh ] Marcon Minn Mining Mo Mo Mo Aounta Aviation. ... te Equity cv pf. Int Petroleum (1) Kirby Petroleum. ... 4 3 Kolster-Br (Am §h). Lake Shor Mines (2) Lefcourt Realty 1.60 Lefcourt Real pf (3) Kan Pipe Line n Pipe L ( awk Hud 1st(7). Add 00. Open High. Low. Close. 10% 104 9% 24% Coal & Nv (1) Lindsay Light (80c). Lone Star Gas n 88c. Long Isld Lt pf (T).. 1 Magdalena Synd. 11 M 87 1-10¢ Margay Mass Ut cv pf (23%).100s Mavis Bottling (A).. 5 AMet Chain Midl Sts Pet vt Mid West Ut (b8%). Honey pf (6 1 1 18 . 208 1 10 1 508 3 17 Stores. A Corp of Can. in Prod (80c) Nat Fuel Gas (1) Nat Sh T Sec A t60c. New Mex & Ar Land. Newmont Mining. NYP&Ltpt (7 Y Shipbuilding Y Tel pf (6%).... N Niag-H Niag-H Niag Share(Md) 20¢ . 2bs D> 415 50s 113 ud Pow (40c) 12 6. ud Pow A w. 1 30623 Noma Elec (40c) Nor St Pow A (8) No Pwev pt (6). Ohto Copper. PacG & B 1st pf 1%. Pac Western Ofl. ... 1nark P Pion G Propy Pub S Ri r Rust Prf (3 Pennroad Corp (40c) e N 111 Pub SveN I Pub Util Hold war Pub Util Hold xw. X ar Rockland L&P (9 Mo ) M Ltd (12¢). McCallum. . £ (6) n(8) 4 I 100s 104 508 115 3 1% 104 115 * Anthony Gold afety Cont.., ck Den Min. C I Edpt B (134). 2 So. Unic Southld Royaity 20c. 1 Stand Otl of I (1). 5l Stand Oil of Ky 1.6/ 9 + ‘Trans Air Trans ibize n Gas Chatel. B.... of Canada(1) t Corp war N tLt I 1Po Util Ut Van Ca Wat i & 12! 0 + Winter Dividend nual payment. o in cash nd. _{ plus 5% . iPlus 2% In “iistock. nPlus 8% i & Pw A (1).. t L& Pwr pt(e). “{nishing.... inter Sec 1st pt.. Lines pf. t Verde & Lt (b Ind & Ind pL( p Pkg. 5 nd B(80¢c). W) Co. n Copper. e pf (4). (Benj).. WiwthEWL Business Reason for Optimism Seen in Settlement of Railway Wage Negotiations After Long Parley. BY MAX WINKLER. NEW YORK, February 1 (NANA). —Settlement of the railway wage ques- after more than two weeks of negotiations between the railroad presi- dents and the representatives of labor should be viewed optimistically The main features of the adjustment include a 10 per cent reduction in wages for one vear, which is expected to result in & saving of more than $200,000,000; efforts on the part of the roads to pre- DR. increased employment; the appointment | of a joint committee to study the ques- insurance, elective ation and a dismis- sal wage agreement by the railroads to establish regional employment bu- reaus in New York, Chicago and Wash- ington, the detalls to be drafted by a nt committee. The settlement is expected to exert a favorable influence upon railroac securi- ties and strengthen materially the Status of many financial institutions, including savings banks and life insurance col panies, a considerable part of whose in- vested capital is placed in railway issues. tion retirement workmen'’s comper The United States finds itself today a second glacial period, and the re- cently formed Reconstruction Finance Corporation may confidently be expect. of it. ac- B. Wehle, former gen- ration, after which the new enterprise is modeled chorporation, Mr. Wehle continues, and its readiness to lend should, by tending to restore confidence, effect far more | relief than all of its actual transactions. A constructive program has been adopted by Montgomery Ward & Co. which is expected to strengthen the or- ganization greatly, effect further econ- omies and eccomplish a general im- provement in operations, says Sewell L. Avery, chairman of the board. st year's relatively results are attributed by Mr falling prices and competitive condi- tions. He also calls attention to the company's strong financial position, as evidenced by a ratio of current assets to current liabilities of more than 14 to 1. 1If the state of New South Wales will be permitted to default on its loans, sold to investors largely in the United States and Great Britain, it will be the first time in the history of the British Empire that one of its constituent parts will be guilty of a serious violation of terms of loan contracts. Early last year the state's fiscal difi- culties were adjusted with the aid of the commonwealth government, which is apparently unwilling or of New South Wales It should be pointed out, however, that by virtue of a special act of its Legislature Australia is responsible for the debts of the various states, so that | default on the part of one is tanta- mount to a default by the common- wealth government. It might be helpful if some one were %o call attention to the profité occa~ ployment and to give | The mere presence of the | unsatisfactory | Avery to | | reduced volume of business, continually | sionally made by investors in foreign securities There was paid off recently to the American investing public at 105 and interest a 7 per cent $25,000,000 loan sold in this market on behalf of the | Department of the Seine 10 years ago The original cost of the issue was $22,625,000, or $905 per $1,000 bond. | Those who have retained the bonds since flotation have received for each | bond of $1,000 denomination $700 by | way of interest and $1,050 representing principal, or a total of $1.750 on an in- vestment of $905. On March 1 Netherlands will the Kingdom of the call for payment at par a 6 per cent loan of 150,000.000 guilders, of which the major portion was sold in the United States about nine and one-half years ago at 96. T | value of the bonds on the basis of the price of issue was $57.600,000. Inter received to date approximates $35,000 000, while the sum repaid will am to $60,450.000, or a total of more 1$95,000.000 on an investment of $57,- 600,000 It should also be of interest to call attention to the fact that during 1914- |31 foreign bonds refunded to American investors aggregated well over $2,500,- 000,000. Cancellation all the way aroun the only means of avoiding a hopeless tangle of war debts and reparatior according to David Lloyd George, Great Britain’s war premier. He sees no ef- | fective settlement in 1932 of any of the | problems really troubling the world. | " Lloyd George has been known to be | wrong before. Many of his dire proph- | ecies have not materialized. more, being one of those who signed the | Versailles treaty, he cannot very well ‘den\' his responsibility for the diffi- ‘cu]hr.s arising from political debts, espe- | clally” reparations. ~ Regardless of his pessimism, there are indications that conditions are getting better, as they id following Lloyd George's warnings some years ago in his “Is It Peace?” Mr. George's fears today are based upon the elections scheduled in the leading countries. expected to bring about drastic changes, one may perhaps look for a change in attitude on the part of the nations af- I!rm-d toward the varfous world prob- ems. (Copyright. 1932, by the North American Newspaper Alliance, Inc.) TRUCKS SET NEW MARK IN HAULING LIVE STOCK By the Associated Press. CHICAGO, February 1.—Motor trucks and sheep trucked to 17 markets. EX- actly one-third of the total receipts were transported by truck, a 25 per cent in- crease over 1930, It is estimated that 3,000,000 tons of live stock rode to market by the gasoline route. It would have taken 342,000 sin- gle deck carloads to handle the trucked receipts. The estimated 1,175,000 truck- loads that hauled the 21,000,000 head o{uswck had an average haul of 85 miles. Visible Grain Supply. NEW YORK, February 1 (#).—The visible supply of American grain shows the following changes in bushels: Wheat decreased 2,297,000, corn in- | creased 587,000, oats increased 244.000, rye decreased 23,000, barley decreased 53,000. Daily output of the Fushun, Man: .nm“s.ywmumuu Further- | Since these elections arc | set a new high record of hauling live | stock from farm direct to market n | 1931, with 21,162,430 cattle, calves, hogs | CORPORATIO REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS. NEW YORK, February 1.—The fol- lowing is a summary of important corporation news prepared by Standard Statistics Co., Inc the Associated Press: Weekly The stock market moved level: st week under the adverse domestic news the United Stats tion’s dividena, tne for News Review. to lower uence of The reduc Steel Corpora- omission of the tion’s dividend, ports of these and r companies tended to depress prices. The actual movement of the stock market according “to ,our price index for 90 stocks showed a decline 1.7 points, dropping to 63.1 on January 29 from 64.8 on January 23 : After protracted negotiations the railroad unions eccepted a 10 per cent wage cut to become effective February 1 and run to January 31, 1933. Under this agreement the railroads will sa about $210,000,000. It will be remem bered that the freight rate increase was estimated at $100.000.000, thereb; adding about $310,000,000 to railroad revenue. | DOOT earnings repol Freight Loadings. Revenue freight car loadings in the week ended January 16 showed a slight increase; however, the rise was less |than the usual seasonal amount. 772 car increase for the the total loadings to which is 118,477 cars fewer than the corresponding week of last year. Electric power production in the week ended January 23 totaled 1,598,201 kilo- watt hours, a decline of 6.7 per cent from the like 1931 week, which is the same percentage drop reported in the previous week. The Atlantic Seaboard continues to make the best compari- son while sharp recessions are reported for the central industrial region and the Pacific Coast. Steel production continued to rise from the December low levels, opera- tions now being at about 28 per cent of capacity. It has been estimated that operations in the first quarter of 1932 should approximate the 27 per cent average rate for the fourth quarter of 1931. There was a 31,950-barrel decline average crude oil production during the week ended January 23. This brought | the daily average output to 2,161,500 barrels, “according to the American Petroleum Institute. The most impor- tant change was the 29,.850-barrel de- | crease in the Oklahoma output. in The Companies. Consolidated Gas, Electric Light & Power of Baltimore 1931. common share earnings based on average number of shares outstanding $5.21, vs. $5.42. Delaware & Hudson Co.—December net operating income of Delaware & Hudson Railroad Corporation up 34.3 per cent; 12 months off 27.1 per cent. International Nickel of Canada, Ltd. —Common dividend to be considered February 15 instead of February 1. New York Railways 1931 net income before income bond mterest, $364,583, V8. §95,523 Pittsburgh & West Virginia Railway December net operating income off 34.1 per cent; 12 months off 59.9 per cent. Siemens & Halske A. G. declared 9 per cent common dividend; paid 14 per cent February 26, 1931. Union Bag & Paper 1931 net income, $112,584, equal to 77 cents a common share, vs. defickt $155,263 9l 1] * | densome the | New York, | | 21a2415; LIVE STOCK PRIGES IN FIRMER TREND. Pick-up in Consumer Demand Needed, However—Buy- I ers’ Position Strong. BY FRANK L WELLER. Associated Press Farm Editor. The general livestock market appears to be in much better shape than a week ago and may have & chance to get back on a more profitable feeding basis if the rather bad consumer demand picks up. Medium to choice fed steers and yearlings gained 50 to 75 cents for the week at Chicago and common kinds were steady to 25 cents higher. Kansas Cily was 25 cents to mostly 50 cents higher, East St. Louis 25 to 50 cents higher on_ steers, mixed yearlings and heifers. Some of the early upturn was lost at Omaha and values closed about steady with a week ago. Although last week’s closing advance on hogs was about lost at Chicago, the market wound up steady to 5 cents | higher. _There was little change at | Kansas City, but the market could be said to have been steady to 5 cents | above a week ago. Record receipts at | Omaha knocked 5 to 15 cents off light weights and butchers, cut light lights 10 cents and pigs about 50 cents. Lamb Prices. Fat lambs were mostly 25 to 50 cents above the recent low spot at Chicago A fairly broad demand boosted prices 25 to 30 cents at Kansas City and 25 to 50 cents at East St. Louis. Local packer demand and liberal order buy- ing by the East gave Omaha a net ad- | vance of 50 to 75 cents. | The other side of the picture and ¢ thing which may be of immediate cct on livestock prices is the dressed control at their absolute week, where d from un were_help Beef and Buyers were in | Chicago the last bearish attacks benc sonal weather. Sellers despite moderate supplies | pork were penalized most. While chotce teer meat advanced $1 to $1.50, the more liberal common to good supplies £1, cow meat 50 cents, veal 50 s to $1 and pork cuts $1 was a forced market all ecen grades of beef ged to push such wa the way salesmen res on all slow at classes | was a ail nost supply | A larger share of shortfeds tle better all the al dispost s been t a : oice offerings seem pr nuch of this w primarily to enforced ng and that the advance the lower grades more ar to the detriment of kinds bring- and better. But, it will be ever shippers enter the i vAs kosher bu raise p ¢ be- upturn does not have the dging enough such cattle g0 arow 'me obse s continue porary break bable ~since th trade stands a better TS say that noth: in mor topy beli chance of showing | Special Dispatch to The Star BALTIMORE, Md. Februa White potatoes, per 100 pounds sweet potatoes, bushel, 40a80: vams, barrel, 75a1.25; beans, bushel, 1.00a2 beets, per crate, 1.40a1.50; Bru sprouts, per quart, 10a20; cabbage, hamper, 50a1.25: carrots, per bushe 1.00a1.25: cauliflower, crate, 1.00a1.65 celery, crate, 1.00a3.00; eggplants, crate, 1.50a2.75; kale, bushel, 20a30; lettuce, crate, 2.5084.00: peppers, crate, 1.50a 2.75: spinach, bushel, 25a90: squash, bushel, 1.50a2.00; tomatoes, crate, 1.23a | 4.00; turnips, hamper, 15a40; onions per 100 pounds, 3.50a4.00: grapefruit, box, 1.2582.50; apples, bushel, 35a1.50; oranges. box, 2.00a4.50; strawberries, quart, 22a25. Daliry Market. Chickens—Young, 20; Leghorns, 14a17; old hens, 13a18: Leghorns. old, 14a15; roosters, 10a12; ducks, 12 geese, 13a17; guinea fowls, pair, 30a60; turkeys, 16a28; pigeons, pair, 20825 cases: current | , 1612; south- | receipts, 16; nearby fi ern firsts, 16. Butter—Good and fancy creamery, ladles, 15a16; process, 20a21; tore packed, 1l1al2. Live Stock Market. Cattle—Receipts, 500 head; light sup- ply; market steady. Bteers—Choice to prime. none; good to_choice, 6.00a7.00: medium to good, 4.7585.75; falr to medium, 4.0084.75; plain to fair, 3.50a4.00; common to plain, 3.00a3.50. Bulls—Good to prime, none; good to choice, none; medium to good, 4.00a 4.25; fair to medium, 3.50a4.00; plain to fair, 3.2583.50; common to plain, 3.00a3.25. Cows—Choice to prime, none; good to choice, none; medium to good, 3.75a 4.00; fair to medium, 3.25a3.75; plain to fair, 2.50a3.25; common to plain, 1.502.50. i Heifers—Choice to prime, none; good to choice, 5.00a5.50; medium to good, 4.50a5.00; fa to medium, 4.0084.50; plain to fair, 3.00a4.00; common to plain, 2.50a3.00 Fresh cows and Springers, 30.00a60.00. Sheep and lambs—Receipts, 400 head; moderate supply, market steady; sheep, 1.0023.00; lambs, 4.00a7.40 Hogs—Receipts. 3,700 head; good sup- ply, market higher; lights, 4.5084.95: heavies, 4.25a460; medium, 4.7585.05; roughs, 2.75a3.73; light pigs, 4.0084.50; pigs, 4.25a4.60. Calves—Receipts, 400 head: light sup- ply; market steady; calves, 4.0029.50. Hay and Grain, Wheat—No. 2 red Winter, garlicky, spot, domestic, 63%; February delivery, 6355; March, 65%. Corn—No. 2 yellow, spot. domestic, 44a45; cob corn, new, 2.00a2.10 per rrel. bsorleu—No, 2 white, domestic, 36a36%4; No. 3, 35a35%4. Rye—Nearby, bag lots, 40a45. Hay—Receipts, none. General hay market quiet. Receipts ample of tim- othy, 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 egular in price. argt:;rw'iNo. 1 wheat, 8.50a9.00 per ton; No. 1 oats, 9.00a10.00 per ton. Hun%g‘; unemployed now number about 00. just enumerated 40 va- Experts_have § oy rieties of bananas in i tistics, improvement than of becoming worse. | [ INCREASE IN AUTO PRODUCTION IS REPORTED FOR DECEMBER Commerce Department Notes Gain After New Low Record Had Been Established During Prev A sharp upturn occurred in Ameri- can_automobile production during the closing month of 1931, Commerce De- partment figures revealed today, after a new low in the history of census rec- ords extending back to 1922 was reached prior to December. Manufacturers’ _sales during 193 amounted to 2,389,730 automobiles, which was nearly 1,000,000 under the 1930 total of 3,355986, and compares ith & previous low of approximately ords show, According to the department’s sta- factory sales of trucks, aggre- gating 416,640 last year, dropped to ap- proximately the 1924 level, while pas- senger car sales of 1,967,065 were the | lowest shown in the census figures, with | a previous bottom of 2,244,000 in 1922. Passenger Car Sales. Sales of passenger cars in 1930 amounted to 2,775,809, while the man- ufacturing plants also sold 571,241 trucks Last November the automotive out- put reached its lowest mark, according to available figures, but swung sharply upward during December, with manu- facturing sales reaching 121553. The mber total for only 68,867. The December showing reversed a downward trend stretching back to April, but sales were still well under the December, 1930, amount of 135,701, This downward movement had been pparent both in passenger car and uck production and was checked in both of these fields 44,000 in 1922, the department’s rec- | ious Months. ‘The December factory sales of pas- | senger cars rose to 96753 from the | 48,185 announced in November. The December, 1930, total was 120.833. Truck sales increased from 19,683 in November to 23.636 in December, as reported by the makers. The figure for December of the preceding year was | 33.443. | For the first time during the year | monthly sales of taxicabs passed 1.000 | when they reached 1,144 for December, bringing the total for the year to 6,035, as against 8,936 in 1930. Total automotive sales by Canadian manufacturers, as reported to the Cen- | sus Bureau by the Canadian Bureau of Statistics, were 82,621 last year, as against & 1930 total of 154,192, The Canadian output of passenger cars for 1931 was 63,477, as against 125442 in 19 while the truck total amounted to only 19.144 in 1931, as compared with 28,750 in the previous year. Total Production. The American figures disclose that for total automotive production, as well as for that of passenger car and trucks, not a single month of 1931 ex- fge:{c’ied the corresponding month of The factory sales of automobiles made in the United States, including foreign assemblies from parts made in this country and reported as complete units or vehicles, are based on submitted to the Bureau of the Cens by 144 manufacturers in the country 42 making passenger cars and 113 mak- ing trucks. COMPULSORY AUTO INSURANCE INDORSED Research Council Advocates Law Patterned After Workmen's Compensation Statutes. the Asso Press bile accident damages a committee which subje der the iversity lumbia committee's report, made public is based on ions of more th dent cases in differ- country. It includes study of the Massachu- lisbility law_and_of ility laws in other the cate,” the committee red owners of m a very e damage which biles cause. sibility laws do little justice. The com- surance law has ated the evil of financial Massachusetts and is nced step taken in this e the compensation ee strongly approves of v owner of a motor ve- » against whatever legal be imposed upon him for ries or death caused by its n committee believes, however, that the remedy must go further than the compulsory liability insurance law and that no system based on liability for fault is adequate to meet existing The committee favors the tion with limited lia- i regard to fault, anal- ) that of the workmen's com- tion laws. “Such a plan would eliminate the use of the principle of negligence, would place the burden of economic loss on the owner Or operator to whose ac- vity the loss 1s chiefly due, would pro- vide for an equitable distribution of the insurance fund according to the extent of the economic loss and would provide a prompt remedy at small cost to the injured person or his family. “The operation of such a plan would be of spectal benefit in the majority of es of serious injury or of death. The committee believes that such a compen- sation plan would be workable, that its cost to motor vehicle owners need not be unreasonable and that it would not violate the due process clause of the Federal Constitution.” The chairman of the committee which made the study was Arthur A. Ballan- | yiqe tine, New York, Assistant Secretary of the Treasury. Members of the com- mittee included Henry W. Taft, New | York; Robert S. Marx, Cincinnati, and Ogden L. Mills, Undersecretary of the Treasury. The work was directed by Shippen Lewis of Philadelphia. Consolidated Gas of Baltimore. BALTIMORE, February 1 (Special) ~Report of the Consolidated Gas, Eiectric Light & Power Co. of Balti- | niore, filed with the Public Service | Cemmission Saturday, for the year 1931, shows earnings equivalent to $5.21 a share on the common stock, compared with $5.42 a share in 1930. In 1931, however, there were 31,827 more common shares outstanding than there were in the preceding year. Net operating revenue from electric operations amounted to $6,549,439.40, an increase of 5.48 per cent, compared with the preceding year. Net operating revenue from gas operations was $3,- 070,647.21, a decrease of $19.974.25, or | 65 per cent. This siight falling off | is attributed to unseasonably warm | weather. Net operating revenues from all oper- ations amounted to $9.652,158.24, an in- crease of 4.10 per cent. Surplus avail- able for dividends was slightly less, due to greater fixed charges, standing at $7197,483.99, a decrease of $65,133.40, or .90 per cent, compared with last year. The amount carried to surplus in 1031 was $1,875,181.22, compared with $2,060,384.64 in the preceding year. Utility Probe to Resume. By the Associated Press. Beginning tomorrow the Federal Trade Commission will resume its in- vestigation of power and gas utilities, with hearings on companies of the In- sull group, namely, a subsidiary of the Middle West Utilities Co., National Electric Power Company and certain of its subsidiaries. On completion of these hearings, the Natfonal Public Service Corporation, & subsidiary of National Electric Power Co., will be taken up, and also Electric Management & Engineering Corpor- ation, a service company of this group. Certificates to Be Retired, NEW YORK, February 1 (#).—The Associated Gas & Electric Co. has no- tified holders of the $1.60 interest-bear- ing allotment certificates that retire-| ment of the certificates will be effected on June 30, 1932, through an exchange of securities. o Holders have the option of receiving | in exchange for each certificate one share of Associated Gas & Electric cominon stock, one-tenth of a share of $5 dividend series preferred and one optional stock purchase warrant or $30 principal amount of 5 per cent con- vertible debenture bonds or $27 princ pal amount of 6 ger cent con debentures. | still lookin EXPORT IMPLEMENT TRADE IN DECLINE ‘Husiness of 1931 Was Lowest Since | 1923, Commerce Department | By the Associated Press. The Commerce Department reports American export trade in agricultural implements and machinery during 1931 amounted to $57,403,485, the lowsst fig- ure since 1923, and 50 per cent un: 1930's fig The department was not unusu state of agricul world is taken into considerati the demand for farm equipm many important markets disappe entirely Reveals. reported the when the depressed ire t Dugl th these markets, the prices of | of production siderably below profit could be rez Of the total exports during the ye about 85 per cent were shipped the first six mont Russia w | principal market, and while figw the whole year are not availabie, t for the first six months show Russian purchases amounted to §. 616 of a total of $50,063,384. or 75 per cent All classes of implements st the types in which Russ showed much smaller any other. Among the notable | were harvesters and binders, t mowers, windmills, drills and |and plows. Such spec as dairy apparatus, lawn mowers and sprayers and dusters showed much smaller declines. Price and Value BY GEORGE T. HUGHES On the surface it certainly seems that all of our investment manuals should be rewritten after the experience of | the ‘past two vears, but that is not quite true. The trouble has been not | so much that we had erroneous ideas | about securities and about safety, but | that we put the emphasis in the Wrong place. For instance, we have always known | that price and value were not synony: mous. We have always known that prices change comparatively rapidly but that values alter slowly, respond: ing to fundamental changes in indus- | try as a whole and in the kind of se- ‘(‘\lniY under consideration. When the markets began their long and disas- | trousdecline, we did not give this | principle due weight | " It is not that the real worth of our | stocks and of our bonde has depreci- | ated, although it has done that to a great degree, but that once a world- deflation gains momentum it carries everything down with it, good bad and indifferent, mor or less. For- depression-proof industries and about depression-proof securities. There are no such securities. Market price fis fixed not simply by the hopes and the fears of the buyers and the sellers, but in times such as we have gone through in this greatest of all slumps, by the necessities of the sellers. The lesson is the interdependence of all the markets. When because of the collapse of an extravagant speculation in one quarter those involved must have cash, and that immediately, they offer whatever will bring cash in a market which because of that very collapse has lost confidence. Their offerings de- press the price of what they have to sell regardless of its intrinsic merit One speculative position undermined in turn undermines another. It is at that point that the error of confusing price with value begins its destructive work. If it is not promptly arrested by courageous action on the part of informed and financially strong interests, as was not the case in 1931, distrust spreads like an epidemic, and, g alone at prices, universal bankruptcy seems to threaten. But even this is not the whole story. (Copyrisht, 1932) - Company Reports Loss. NEW YORK, February 1 (#)—A net loss of $167,874 for 1931 was reported today by the Transue & Willlams Steel Forging Corporation, compared with & net loss of rglss for 1930‘3 Buick Shipments. NEW YORK, February 1 (#)—The Buick Motor Co., division of Gen- eral Motors Corporation, produced and shipped 6,365 cars in January, com- pared with 11,629 in December and 6,000 in January, 1931. —_— PARIS BOURSE PRICES. PARIS, February 1 (#).—Three per cent rentes 78 francs 90 centimes. Five per cent loan 100 francs 65 centimes. Exchange on London 87 francs 67 centimes. The dollar was quoted at 35 francs 42% centimes. Standard of New Jersey Dividend. data | getting this principle, we talked about LT A—1S NEW CREDIT PLAN UNDER DISCUSSION 1Use of Discounted Corpora- | tion Notes to Raise Cash Considered. By the Associated Pre NEW YORK, Pebruary 1—A groy of prominent industrialists is aonE sidering a plan by which large corpers- tions rich in cash may act to extend some $500,000.000 in commercial credit, which in turn may theoretically be jused as a basis for some $5,000,000,000 in further credit, tending to swell bank deposits and bolster commodity prices This plan, the Associated Press learned, envisages the payment for commodities purchased the rieh corporations by 60 or 90 day promissory notes, rather than cash. The corpora- tions would leave their cash on deposit with their banks. The sellers who re- ceived the rich corporation's notes could discount them at their banks, and the banks could in turn rediscount them at the Federal Reserve. Backing for Currency. Such notes would in turn be used as legal backing for curreney, much of which now has virtumly a rull gold backing even though it is perfectly legal, under the Federal Reserve act, to use 60 per cent of commercial notes. This g is now partly sterile and some industrialists fear that the ount of eligible commercial notes will decline, tending to absorb part of the balance of free gold which the Federal Reserve system now possess in excess of requirements In other words this free gold, amounting to about $500,000,000, to- gether with $901,000.000 now being used for full gold backing, could be used more effectively if more commereial paper were made available. A Federal Reserve note requires only 40 per cent gold backing and 60 per cent eom- n al paper. Many large corporations have huge cash reserves. General Motors had on December 31, for instance, roughly $204.000.000 as compared with $179,- 000,000 a year previously. If such cor- porations choose they may easily do business with some term promissory notes, and thus provide the basis for the issue of more currency. In quarters close to the Federal Re- erve, it was stated that banks in most alities are already well provided with arge supplies of commercial paper, and th is far from any shortage in e aggregate Persons interested in the plan, how- believe that injection of more commercial paper into the | credit structure would result in more rediscounting at the Federal Reserve, and thus expand the amount of credit in use. as well as the currency Base. They feel that this would tend to halt uidation of securities, give a better tone to the markets generally, including commodities. and act as a restorative of confidence. Mills' Plea Recalled. If the corporations provide $500,000,- 000 worth of promissory notes, and ese notes are in turn rediscounted at the Federal Reserve Bank, under the workings of the Reserve system, econo- mists explain. it might provide a basis for a theoretical maximum of 10 times that amount or $5.000,000 in credit. The plan coincides with the plea of Ogden L. Mil undersecretary of the Treasury, who urged the bankers 1o halt their selling of securities andt heir calling of loans. The banks have been forced to such action because of the lack of good borrowers and the neces- sity of obtaining cash. The plan con- templates the obviating of this diffi- culty through providing good borrowers and replenishing the supply of prime commercial paper, on the basis of which the nation’s business and banking 1s largely done in normal times. Grain Market By the Associated Press. CHICAGO, February 1.—Helped by upturns in securities, grain prices scored an early advance today. The grain market was also stimulated by indica- tions that the Far East crisis was be- coming more serious and by apparent likelihood that damage had been done to domestic Winter wheat Opening 4-12 higher, wheat after- rd showed additional gains. Corn tarted unchanged to % higher and then reacted a little. Contributing to the upward trend of Chicego wheat values today was relative strength of Liverpool quotations, to- gether with signs pointing to a fair amount of North American wheat ex- port business. On the other hand, the amount of wheat afloat for importing countries showed & large increase both as compared with a week and a year ago. Rising temperatures in domesti ter wheat territory were also sed by bears. nconfirmed rumors of warlike hap- penings indicative of greater chances | that the United States might be direct- ly involved by the Shanghai situation led later to continued advances in wheat. Minor downturns which inter- vened on account of profit taking sales were quickly succeeded by fresh rallies higher than before. A further ad- vantage to bulls came from reports that France would increase the amount of imported wheat allowed to millers. Corn and oats were largely responsive to wheat action. Provisions went up with hog values and with cereals. New York Cotton Special Dispatch to The Star. NEW YORK, February 1.—Opening | cotton prices today were off 2 points to {up 3. Trading was fairly brisk, with | March contracts active on a good trade demand. | Opening prices were: March, 6.73, up 3: May, 6.89, up 1. July, 7.08, un- changed; October, 7.25, unchanged; December, 7.42, off 1, and January, 747, off 2. MARYLAND TOBACCO PRICES. BALTIMORE, February 1 (Special). —Receipts of Maryland leaf tobacto continue heavy, but sales are off, only 73 hogsheads being reported last month, against receipts of 243 hogs- heads, leaving a stock in State tobacco warehouses of 15,116 hogsheads and 335 hogsheads of ground leaves. The percentage of new crop offerings is gradually increasing, while the recent receipts of old crop are mostly of the lower qualities. Quotations today for Maryland leaf tobacco, per 100 pounds: Frosted and inferior, 2.00a4.50; sound to good eom- mon, 5.00a15.00; medium to good, 15.00a 35.00; good to fine red, 35.00a54.00; fancy, 54.00a55.00. Seconds—Common to medium, 5.00a22.00; good to fine, 33.00a42.00; 1931 ground leaves, 4.010520.00. Upper country burley nomi- nal. NEW YORK, February 1 (#).—The Standard Oil Co. of New Jersey today declared the regular quarterly dividend cents, both payable March 15 to stock of record February 15. Dividend Meeting Postponed. NEW YORK, February 1 (#)—Inter- national Nickel Co. of Canada directors will meet for dividend action on Febru- e ary 15 instead of today, as originally scheduled. CHECK TOTAL DROPS. | of 35 cents and the usual extra of 25 BY the Associated Press. Checks cashed on individual bank accounts in leading cities of the Federal Reserve System showed & decline of 15 per cent during the week ended Jan- uary 27 as com¥ued with the previous week. The total debits, for comparable periods, follow, as reported by the Federal Reserve Board: Week ended January 27, $7,096,743,~ 000; previous week, $8,248,082,000; same week last year, $8,856,803,000, . 4