Evening Star Newspaper, February 11, 1932, Page 15

CURB SHARES RISE | IN BRISK TRADING Market Bucyed by Strong Buying, With List Showing Numerous Gains. BY JOHN A. CRONE. Epecial Dispatch to The Star. | NEW YORK, February 11.—An out- burst of buying on the Curb Exchange, induced by the Washington announce- ment of proposals to liberalize the Fed- eral reserve act, sent prices higher to- day. Market leaders, like Electric Bond & Share, Electric Power Associates A, American Superpower, Niagara Hudson Power. United Light & Pow:r A and Standard Oil of Indiana quickened their pace, but gained only fractfon- | ally. Cities Service, however, ran up 114 points to 6% as shorts scurried to cover. i The Washington news was a surprise to professionals only in its details, so these traders did not cover their short lines at the opening today. Most of the early covering came from amateur bears. Some “good” switching was noted in the oils. Floor traders observed that foreign oils were being switched for domestic petroleums. This movement Jed some to believe that prospects of an import duty on petroleum were brighter. Despite this belief Gulf Oil of Pennsylvania. which would feel the effects of a tariff on oil, rose nearly 2 points, Venezuelan Petroleum was un- changed, as was Creole Petroleum. a subsidiary of Standard Oil of New Jersey. Great Atlantic & Pacific Tea ad- vanced 7% points in the forenoon, despite its January sales figures, which showed a decrease of $9,848.271, or 125 per cent from the same month & year ago. Blue Rridge Convertible perferred advanced fractionally in response to declaration of the regular dividend. Stimulated by the proposal to liberal- ize the Federal Reserve act, stocks opened higher. # ‘Advances ranged from fractions to more than 3 points. Aluminum Co. of America rose 2!, points to 48. Great Atlantic & Pacific Tea, despite the de- cline of $9,848.281, or 12,5 per cent in sales for January, against that month in 1931, opened at 143';, up 3% points. Electric Bond & Share ran up almost 8 point to 107 on the first few trades. Cities Service opened fractionally lower, but afterward came out in sizable lots at a small gain, Deere & Co. opened on a block of 2,100 shares at 7%, up ';. Declaration of the regular quarterly dividend on Blue Ridge preferred did not keep that stock from opening off a shade at 18%. Ford Motor Ltd. eased as Ford Motor of Canada A opened up %. Other market leaders, for the most part, opened higher. Bank of England Statement. LONDON. February 11 (#.—The weekly statement of the Bank of Eng- land shows the following changes in pounds: Total reserve increased 1.- 128.000. circulation decreased 1.147.000, bullion decreased 19,000, other securities decreased 3,837,000, public deposits in- creased 1.633.000, other deposits de- creased 10,446,000, notes reserve in- creased 1,147,000, government securities decreased 6.075.000 . The proportion of the bank’s reserve to liability is 42.8¢ per cent, compared with 38.92 last week. Rate of discount, 6 per cent. BONDS ON THE CURB MARKET. BONRE: Low. 4sh ey & 3 Salesin DOMESTIC Nggn. W & 3 ASSS_Gas } Adsg et 550 9 As Tel Q45 1Bell Tel Can 5 A 1 Cap Adm_ 55 18 Carolina P & L 5: 2 Saterpiftar Tr 3 Eent Pow & Lt 5% 24 Cent Pub Ser 5'as 1Cent Stat Elec 55 '48 11 Cent St Elec 1 Cent 1 Chic 200 Cities Service Service 4 Comnity 57 6 10 Con Gas Balto 4s 10on G Ut A8 on Gas Ut ¢ G illette 8 Raz 35 b B 8i,e A35 11Intern Sec Am 55 ' 1Intersta Pow 55 8 Intersta_Power 65 7Interst P S 4lan '58 Towa-Neb L& 1 Kentucky Ut 5Lenigh P S Mid West U 5 Mid West U 5s '35 Miss Riv P 6s 4 Mist River B 5 Mo E'ikrTsea 3 NoP'elelii 310 5 3 N FEL R Nat P § 5s 1 National Tea 55 A 2022 &E 55 48 & 2 5 9 1 H 5 i 1 2 10 47 us A8 hw W&P 41os B 5Shw WE&P 4las Shaw W&P 55 C ‘70 SE P&L 65 A 2025 xw South Calif Ed 5 Sothw P&L 6 Staley MIg 65 ° Stand Gas&E 1 e Va Pb Ser 5iss A''48 1Va Pub Serv 52 B ‘30 1West News Del 6s '44 FOREIGN BONDS 1 10 Gent Bk Co 65 B 6 Chile Mtz Bk 6 3 Europ, MU 3Ger Cons Mun 1Ger Con Mun 1Isoita Fras 1Ts 7 Ital Sup Pow 6s A 63 1Lima Cy Peru 6'3s ‘58 Can 4125 '3 1 Ruhr G_Ce § 8anta Fe 18tinnes 75 ‘46 xw Te 6las A rrants NEW Stocks sold in 100-share ~Prev. 1931.—~ Stock High, Low. Dividend Rate. 4% Acetol Prod A, Agfa Ansco pf. . Ala Power pf (6).... Aluminum Co of Am 1825s Alu Co of Am pf (§). Alum Goods (1.20),. Am Gas & Elec (11). Am Invest Inc (B). . Am Laundry Mch(2) Am Lt & Trac (23%). Am Lt & Tr pt (1%). Am Salamandra. Am Superpower Am Superp 1st (§) Am Utll & Gn B vie.. Am Yvette Co., Inc... Appalachian Arkansas Nat G Arkans Nat Gas Ark N G cu pf (60¢). AssOG&EL (A) bS Asso G & El war AssoG & Elct (8) ... Asso Tel Ut (b8%).. Atlas Uth Corp. .. Atlas Utilities war. . Auto Voting Mach. .. Auto Vot Mev pr pf.. Blue Ridge cv pf(a3) Brasil Trac Lt&P(1) Bunker Hill & Sull. . Buff N&E P 1st (5). Burco, Ine.. . Burco Inc war. Cable Radio T vte. Cent Puh § Central States Klec. . Chain Store Devel. .. Ch'brough Mf (11%) Cities Service (g3ve) 11 Citles Serv pf (6)... Cit Sv P &L pf (6)..1008 Clev El lllum (1.60). 4 Colum G&E cv pf(5) 1958 Columbia Pic vic.... 1 Commwith Edison (3 Cmwlith & Sou war.. Consol Aut Mer ctfs.: Con Gas Balto (3.60) Contl Chicago Corp.. Cont Shares ov pf. Cord Corp. .evvsessn Corroon & Reynolds. Corroon&Rey pf(A). Creole Petroieum. Cresson Consol. Crocker Whe Dayton Alr & Eng Deere & Co. ... De Forest Radio + Dubilier Cond & Rad Duquesne Gas. Durant Motors . Eagle Picher Lead. . Eastern Sta Pw pf A. East Util As50 (2)... Elsler Electric : Elec Bond&Sh (b6 %) Elec B&Shpf (§)... Elec Pow Assoc (1). 4 Elec Pow Assoc A (1) Elec P& Lt op war.. Empire Pwr pt(2.24) Eureka Pipe L (4) - » 5 o -1 o RN A LR R e e Fiatrets (pd4%c) Ford Motor, Ca Ford Motor, Can., B. Ford MLtd(p36 3-5¢) Foremost Fabrics. .. Foundation For Shs. Fox Lheater (A).... Gen Aviation. . c GELd rts(p36 3-5¢) Globe U'wtrs (p 40c) Gold Seal Elec new. . Golden Cen! Goldman Gorham Inc pf. Gorham M vic( GtA&PTeanvi6l 908 Gt At&Pac Tea pf(7)160s Guif O1l of Penn: Hackmester Lind Hecla Mining (40¢).. Hollinger Geld t70e. Humble O11 (2)...... Huyler St cu pt (7). Hygrade Food Prod. 111 Pow & Lt pf (6)..1 1mp O1l of Can (buc) Insull Inv. . Insur Coof N A (2). Imsurance Seeurity. . Intercontinent Pet . Int Petroleum (1)... 1 Intern Superpr (1).. Internatl Utility (A) Int Utilities B. . lots except those desismated by letter *s. and Sales— Add 00, Open. High. Low. Close. .1 6% 6% 3258104% 16 & b 59% THE EVENING YORK CURB EXCHANGE Received by Private Wire Direct to The Star Office. 6% Niaj % S Tastye: Dividend nual peyment. dividend. ) el stock. § Plus 2% 1% STAR Stock and Dividend Rate. Lack Securities (4).. Lake Shor Mines (2). Lakey Foundry . . Lefcourt Real pf (3) % Lehigh Coal & Nv(1) Leonard OM. . Lone Star Gasn Lousiana Lan & Ex. Magdalena Synd.... Mass Util Assoc. ... Mayflower Asso (2)a i Mid West Ut (b8%). Mo-Kan Pipe Line. sountain Prod (80¢c). Nat American Co.... Nat Aviation. .. Nat Bd & 8 Corp (1). Nat Food Prod B.... Nat Fuel Gas (1). Nat Pow & Lt pf (6).350i Nat Sh T Sec A $60¢. Nat Transit (1) New Eng Pow pf Newmont Mining New Process (25 N Y Steam Cp (2.60). N Y Telpt (6%).... New ¥ Transit ( Hud Pow (40c. Niag-Hud Pow A Niag-Hud Pow B w. Niag Share(Md) 20e. Northern Pipe Line n Nor St Pow A (3 No Sts Pw cv pf ( Outboard Mot A Overseas Sec. PacG&E1stpf1%. Pan Am Alrways. Paramount Motor Parker Rust Prf ( Patters Pennroad Corp (40c) Pet Milk pf (7)...... 108 Philip Mort Pilot Rad T Plon G M Ltd (12¢).. Pliney Bowes (b4%) 1 Pitts & Lake Erie(3) 508 Pitts Plate Glass (1) - 1 Plymouth O (p50¢c) . Powdrell & Alexand. Prudential Invest, Pub Util Hold war. Pub Util Hold xw Pure Oll pf (6). Railway & Lt Sec(2) 50s Reliance Int A. Reliance Manag... Republic Gas Corp. Rike Kumler (1%). Rossia Intl Corp. Ryan Consolidated. St Anthony Gold. St Regis Paper. Seiberling Rubber Selected Industrie: Indelctfs(5%) Slet Ind prior(5%). Gentry Safety Cont. Shenandoah Corp. Shenandoah Corp pf. Silica Gel ctfs. = Singer Mfg (8). Smith (A. 0.). South Penn Ol (1).. SoCal Ed pf A (1%). So. Union Ga Southld Roy: SW Penn P&L (1) Stand Ot of Ind( Stand Ofl of Ky 1.60. Stand Oil Ohlo (2%). Stand P& L pf (7)... Stand Silver & Lead. Sunray Ofl....eueas Swift & Co (2) > Swift Internatl (14) Tampa Elee (2.24). a Payable in cash or stock. 1 Plus 5% in stock. in stock. stock. nPlus 87 in stock. p Paid WASHINGTON, 50s 2 38 1 1 33 2 1 708 4 2 n Sarg (2).. o A. 2 17 0900 01 1 09 b 00 01 T 0 o 0 00 + 608 4 1 Inc Technicolor Inc Trans Lux DL P Tri-Utilit Tubize Chat Un Gas of Canada(1) Unit Founde Unit Lt & Pw A (1) Unit L & Pwr pf(6) U S Elec Pow ww.... U S & Intl Secur. Unit Verde Exten (1) Util Po & Lt (b10%) Utll Pwr & Lt pf(7). Util Equity pf(5%). Util&Ind ......c.n Utility & Ind pf(1%) n Camp PKg..... Venezuela Petroim. Walgreen Co. Walker, H (25¢). Wenden Copper WiwthFWLtd29 3-5¢ rates in dollars based on last quarterly of semi-an- Ex divid 2 0 a 2 8l 84 end. TPartly extra. :Plus b Payable in’ stock. e Adjustment Plus 6% in stock. hPlus 1% in us 10% in stock.” m Plus in U year—no regular ra 4% in stock, EVERYMAN’S INVESTMENT BY GEORGE T. HUGHES. The effect of a change in the com- modity price level upon debts, public and private, will stand a little more elucidation. Let us take a homely il- lustretion. Two farmers are large growers of potatoes. Two years ago, farmer A borrowed $100 of farmer B. At the time the loan was made, pota- toes were selling at $1 a bushel, but now, 24 months later, they are selling for 50 cents a bushel. Now when farmer B loaned the $100 he sold 100 bushels of potatoes to raise the cash. However, when farmer A now has to pay the money back, he must sell 200 bushels of potatoes to rovide money enough to liquidate the loan. In other words because of the change in price of the commodity in which these two farmers are most in- tercstod the debtor has to pay twice measured in_potatoes as oniginally loaned. There 1s no way of overcoming this inequity as long as we continue to value debts in money. Prof. Irving Fisher is the advocate of a plan to change the gold content of the dollar in accordance with changes in the com- modity price level, but the idea has never received much suport from other economists. It is deemed by most of them to be impractical. As it stands, falling prices work to the advantage of creditors, and to the disadvantage of debtors. Observe that the reverse is also true. An advance in commoditics bencfits the debtor. We arTive then at the conclusion that the real value of a debt is not static. It follows then that if a dabt, or better the evidence of a debt, is negotiable the market price ought to change in accord with this principle. That 1s exactly what happens in the tond market, providing that the bond in question has a relatively distant ma- turity. When the bond eventually falis due it must be paid at its par value, but during its life its market price varies from that par value in propor- tion as commodities rise or fall. This factor in the making of market prices for bonds is always at work but it is offset at times by other influences. These we will discuss in the next article in this series. (Copyright. MARYLAND BOND ISSUE. BALTIMORE, February 11 (Special). —An_issue of $2,122,000 of State of Maryland 4!; per cent bonds was awarded to a banking group compcsed of Alesander Brown & Sons, Brown Brothers. Harriman & Co. of New York and the Baltimore-Gillet Co. on a high bid of 96.27, which 1s an approximately 4.75 per cent basis. The last Maryland bonds sold in Au- gust, also 4Y,s, were awarded the Union Trust Co. of Maryland on a high bid of 107,065, or on an approximately 3.37 per cent basis. Six bids in all were submitted at to- day's sale. - : 1932)) he | PROMINENT GUESTS T0 ATTEND BANQUET | Institute Officials and Many Out- of-Town Bankers Accept D. C. Invitations. Many prominent out-of-town people will be guests at Washington Chapter's banquet February 13, including: Henry J. Mergler, national president, A. I B; Frank N. Hall, national vice president; Richard W. Hill, national secretary, New York; Dr. Harold Stonier, national educational director, New York; Frank M. Totten, past na- tional president, New York; Paul B. Detwiler, past national president, Phi adelphia; Carter E. Talman, past na- tional president, Richmond; Charles E. Ellery, member, national executive council, Newark; William M. Mooney, postmaster, Washington, end William W. Hoxton, chairman, Federal Reserve | Bank, Richmond. In ‘addition to these, there will be many prominent out-of-town bankers and & number of officials of the Treas- ury Department. UTILITIES EARNINGS HELD MOST FAVORABLE Special Dispatch to The Star. NEW YORK, February 11.—Addi- tional annual earnings statements made available during the pist week bring the aggregate of comparable data of Standard Statistics Co. of New York to 2 tot>l of 420 companies. Net in- come of these combined units amounted to $623,879,000, as compared with $1.- 140,970,000 in 1929, e decline of 453 per cent. Utilities continue to occupy relatively the most favorzble positior, returns of 40 companies having regis- tered a recession of only 6.9 per cent, as compared with the showing of identical units in the preceding year. Reports of 356 industrial companies showed a decline of 52.3 per cent, while per cent. Sufficlent representation is not yet at hand to warrant analysis by individual industrial groups, although, as so far reported, it is noteworthy that 7 out of Standard Statistics’ 26 reg- ular classifications showed net defl- cits. In view of the probability that late returns will show greater than average reductions in income, the com: pany believes that aggregate cOIpOra: earnings for the year 1931 will prove have been halved from those of the year before. Workers Get Compensation. NEW YORK, February 11 (P).—The General Electric Co. is distributing $55,739 to employes of its 10 plants as compensation for suggestions tendered by employes in 1931. A Mllo‘ol 19,505 aunsumm were which 6,383 had sufficient merit to be by the company. 24 rallroads experienced a drop of 57.9 | B; Grain Market By the Associated Press. CHICAGO, February 11.—Parallel to upturns in Wall Street securities grain markets scored a brisk early advance today. Credit expansion moves at Washington were a stimuius to active buying of grain future deliveries, wheat especially. Opening 3;-2 higher, wheat after- ward held near the initial gains. Corn started %-1Ys up and subsequently Tose further. Contributing upward impetus to wheat values were Liverpool advices telling of good general demand for wheat. Leading exporters of North American wheat were also represented as believing that a big business with overseas countries probably would be experienced for the next three months. Word of a cold wave in North Dakota suggested a dangerous fall of tempera- tures ahead for domestic Winter wheat, now largely bare of snow protection and unusually sensitive to damage. Canadian dispatches told of the coldest weather of the year, 28 to 62 below zero. Another bullish factor was a report ascribed to German sources that the 1931 grain harvest in Russia totaled but 25,000,000 tons instead of 50,000,000 ex- pected, and that only 81 per cent of delivery plans were fulfilled. Black Sea shipments of wheat this week, includ- ing exports from Russia, amounted to only 440,000 bushels, compared with 2,192,000 & year ago. Some of the buy- ing which accompanied wheat price ad- vances here was on the stop-loss orders from previous speculative sellers. Corn and oats responded to wheat strength. Provisions sympathized with upturns of hog values and of grain. STOCKS EX-DIVIDEND NEW YORK, February 11 (#).— Pe. Pas- Rate. ., . T TG aare s BB e B8 o ec. ontenac Mississippi Val Util Iny Natl Biscuit Co_ pf. Nebraska Pow 7% pf Do. 6" Fegnas e ERETS DODDOOOOORROOOOO0: D OOOOOOOOOOOOOOOLOOOD! XIEEEIEREI ERERRKEEKEYIET TN . 6% pf.. Nova Scotia Lt & Oshu Ry & S - Sar RS Waker of tom‘e Elec Powe Do. §'" 55 88 vt ot i s B ek e Lo babe s 4 D. FY minimum last year, with some large C.,, TaURSDAY, (O WILDCATTING | EXPECTED T0 CAIN! o cca Fins % .|Search for New Pools Is Likely to Be Increased This Year. BY WILLIAM VOIGT, JR, Associated Press Btaff Writer. TULSA," Okla, February 11.—The cry of the wildcatter is expected to in- crease in volume and ring through the ofl world in 1932. Long subdued by overproduction and 1,;1:’5!’ prices, dn‘le wfldcllner, whose rill stem wends its exploratory wa; through the vitals of N Pnotner” eacth seeking gushers where none ed be- fore, probably will be one of the most active elements in the industry through the year. Hunt for New Pools. ‘While much of the exploration prob- ably will be by the small promoter, and the driller with a grubstake and a likely location—as has been the way through the years—the principal wild- catting seems certain to be that of the larger companies looking for new pools to protect their sources of raw mate- rial for refineries. Already there is talk among oil men that the extreme willingness of the big producers to curtail their output in the East Texas, Oklahoma City and other flush pools has been for reasons other than preventing a flooded mar- ket or running crude to overtaxed storage. Lack of opposition to the continued and increased curtailment of flow from East Texas, and the voluntary Sunday shutdown there, are seen as a shrewd move on the part of the heavier in- vestors to try to make sure their in- vestments will be protected by pro- longed production. Opening the flow valves wider would mean not only larger immediate pro- duction, but also would increase the danger of dissipating the gas pressure 14 | below, with consequent loss in ultimate recovery. While the immense possibilities of East Texas kept explomtory work at a leased acreage in firms even giving ug 1 acren year is a different outlying districts, thi story. Thera were a number of finds in 1931 that probably will be developed this year, and there will be much new ex- ploration. Oklaloma last vear developed no new pools of consequence. Gulf Coast Pools. There were found eight new pools along the Gulf Coast, and some impor- tant finds were made in Kansas, par- ticularly the west-central part of the State. These undoubtedly will be de- veloped. Central and West Texas ac- tivities were held back by East Texas. Principal Oklahoma exploration is ex- pected in the west-central part of the State, with Oklahoma City as a hub. From Michigan to Mississippi the prospecting will go on, and from a line between those two States westward oil companies will watch developments closely, hoping valuable strikes will be made to bolster their present reserves when flush production in today's big areas becomes settled flow on the pumps. Speclal Dispatch to The Star. BALTIMORE, Md., February 11.— White potatoes, per 100 pounds, 75a1.00; sweet potatoes, bushel, 40a8¢; yams, barrel, 75a1.50; beans, bushel, 1.50a 250; beets, per crate, 1.50a1.6D; Brus- sels sprouts, per quart, 10al5; cabbage, hamper, 75a140; carrots. bushel, 1.00a 1.25; cauliflower, crate. 1.75a1.90; celery, crate, 1.50a3.75; eggplants, crate, 1.50a 275; kale, bushel, 25a40; onions, per 100 pounds, 3.00a4.00; peppers, crate, 1.50a2.75; spinach, bushel, 50a85; squash, bushel, 1.00a1.75; tomatoes, crate, 1.0083.00: turnips, hamper, 15a apples. bushel. 75a1.75; grapefruit, Box, 1.25a250; oranges. boX, 3.00a4.00; strawberries, pint, 12a18. Dairy Markets. Chickens—Young, 20a22; Leghorns, 17a18; old hens, 15a20; Leghorns, ol 15a16; roosters, 11a13; ducks, 13a20; geese, 11a17; Guinea fowls, pair, 20a25. Eggs—Receipts, 758 cases; nearby firsts, 14}2; Western firsts, 141;. Butter—Good and fancy creamery, 21 a24!;; ladles, 15a16; process, 20821; store packed, 10all. Live Stock Market. Cattle—Receipts, 175 head; light sup- ply: market dull. Steers—Choice to prime, none; good to_choice, 6.00a7.00: medium to good. 475a5.75; fair to medium, 4.00a4.75: 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 425; fair to medium, 3.50a4.00; plain fto fair, 3.25a3.50, common to plain, 3.00a3.25. Cows—Choice to prime, none; good to choice, none; medium to good, 3.75a 14,00; fair to medium, 3.25a3.75; plain to fair, 2.05a3.25; common to plain, 1.5082.50. Heifers—Choice to prime, none; good to_choice, 5.0085.50; medium to good, 45085.00; fair to medium, 4.00a4.50; piain to fair, 3.00a4.00; common to plain, 2.5023.00. Fresh cows and Springers, 30.00a60.00. Sheep and lambs—Receipts, 150 head: light supply, market steady; sheep, 1.00 .00; lambs, 4.00a7.40. Hogs—Receipts, 1500 head; light supply, market spotty; lights, 4.45a24.35; heavies, 4.1024.50; medium, 4.60a5.0" roughs, 2.75a3.75; light pigs, 3.75a4.10; pigs, 4.10a4 55. alves—Receipts, C 200 head: light supply, market steady; calves, 4.009.50. Hay and Grain. ‘Wheat—No. 2 red Winter, garlicky, spot, domestic, 61; February, delivery, 61; March, 62. Corn—No. 2 yellow, spot, domestic, 43a44; cob corn, new, 2.00a2.10 per L Oats—No. 2 white, domestic, 34%;a35; No. 3, 33'5a34. Rye—Nearby, bag lots, 40a45. Hay—Receipts, none. General hay market quiet. Receipts ample of timothy, but good mixed hay scarce and bringing premium. Prices range from 12.00 to 16.50 per ton, as to grade and kind. Latter figure for choice cover mixed. The poorer grades of timothy are ir- regular in price. Straw—No. 1 wheat, 8.50a9.00 per ton; No. 1 oats, 9.00210.00 per ton. AUTOMOTIVE EXPORTS SHOW DECLINE FOR 1931 By the Associated Press. Export trade in automotive exports during 1931 slum| 46 per cent to ‘160.7‘50.833, on tgidbtlls of calcula- tions by the Commerce Department. The year's total was also considerably below the yearly average of the last decade which pmounted to $312,580,754. The following table shows the value and percentage of total shipments of automotive products, according to major groupings, as reported by th> department: ;| Passenger cars .. Parts for assembiy. Parts for repai Tucks .. Service & ccessories Altomobile ¢ Motor boats and eng! Motor. cycles and pa Electric tools,” etc... i $49.153,682 30.962.714 28.278.505 s Fia UARY 11, 1932. FINANCIAL. WARBURG WILL FOLLOWS PLAN OF DIVERSIFIED INVESTME NTS ncier, in His Last Testament, Showed Approval of Principle of Sub- division in Employment of Capital. ‘BY CHARLES F. SPEARE. NEW YORK, February 11.—The pub- lic has always taken a keen interest in the wills of wealthy men. When their last testament has been probated a close scrutiny of the contents of the estate has been made to determine how those who have made money, or in- herited it, have invested it. There is 'Tm curiosity over the provisions of wills indicating the manner in which the funds are to be employed to create an income for beneficiaries. One of the most striking documents of this kind is that of the late Paul M. Warburg, & banker of international reputation and a careful student of in- vestment values. Believed in Diversification. In setting up his will Mr. Warburg carried out to an extreme degree the principle of diversification of invest- ments adopted quite generally in this country in late years and the funda- mental theory governing American and British investment trusts. This con- sists in subdividing an investment fund into many parts in order to secure the greatest insurance against depreciation both of capital and income. Going to its extreme lengths it embodies not only securities of a domestic nature, but those of an international character. In the will of Mr. Warburg the ex- ecuters and trustees are authorized to keep invested all personal estate, as | vell as proceeds of any property sold. “in any manner in which savings banks or trustees may at the time lawfully in- vest any of their funds.” This pro- vision limits investments in those se- curities or real estate to obligations that are legal for the savings banks in New York State, including certain railroad and public utility bonds of companies with domestic charters. Tt also covers first mortgages on improved real estate in the City of New York. In most in- stances, the will compels the executors to limit purchases in any one issue to 5 per cent of the undistributed estate. This is also the general practice of the management investment trusts. Bond, notes and stocks of the United States or of the several States of the American cities having a population of more than 100000 are also prefer- red investments indicated in the War- burg will. It is specified, however, that those cities whose obligations are con- United States, or the obligations of‘ sidered for purchase must not have had a default of rrlnclpnx or interest within 10 years of the making of an ingestment in them. It is again pre- scribed that not more than 5 per cent of the estate shall be invested in this manner except in the obligations of the United States or the State of New York or the city of New York. Foreign Investments. A significant feature of the will, and one that reflects the confidence of its maker in the future of foreign gov- ernment credit, is that which permits purchases of the bonds and notes of foreign governments or cities of foreign countries, provided that they do not exceed 5 per cent of the undistributed estate. However, the aggregate of all such foreign investments may amount to 25 per cent of the estate. This is about the ratio accepted by banks throughout the country in building up their security portfolios in recent years. It was considered conservative practice for such institutions to have one-quar- ter of their security investments in the better grade of foreign dollar bonds. Mr. Warburg also permitted his executors to invest in the preferred stocks of railroad companies in the United States or Canada that had pa'd continuous dividends for 10 years prior to the purchase and for the same period had paid uninterrupted dividends on common stocks equal to at least 4 per cent per annum. A further liberal fea- ture of the will permits the purchase of bonds or other obligations of corpora- tions that may not be classified as legal for trustees, providing that they shall not at any time in the aggregate exceed 20 per cent of the undistributed estate. The document exhibits a feature that is becoming popular among men who have had a wide acquaintance with trust accounts and with securities; namely, that of giving considerable lati- tude to executors or trustees in the way of changing and varying portfolios as circumstances require and as benefits to the estate are created through the shifting of securities. The inflexibility of investment provisfons in many wills has led to a serious depreciation if the composition of an estate. Trustees frc- quently have been compelled to sit and watch securities, arbitrarily selected, de- cline in value when, with more lati- tude. they might have avoided such losses through getting their clients out of securities or real estate in a changing status before it was too late, (Copyricht. 1932) APPLE GROWERS MAKE SALES PLAN Adopt Resolution Urging Closer Co- operation at West Virginia Session. Specfal Dispatch to The Btar. MARTINSBURG, W. Va., PFebruary 11.—Resolutions for closer collaboration among sales agencies, restriction of immatyre apple selling, postponement of the United States apple crop esti- mer apples and establishment of an apple board of trade were adopted by West Virginia Horticulture Society in its annual session here today. The recommendations came from a commit- tee on resolutions and were adopted witheut dissenting vote. ‘The growers' delayed estimate pro- posal was due to a conviction, the reso- lution £aid, that the earlier estimates of the past have often been in error and have been harmful to the industry. Premature picking of apples, due to difference of opinion as to maturing date for varieties, brought a recom- mendation for a supervising inspector to rule on dates. The board of trade suggestion provides for supervision in common problems over the entire West Virginia belt. to consist of 20 orchard- ists and fruit men named by the so- needed, and make recommendations to growers generally. was made, the report said, to prevent price cutting, control market glutting and perform other tasks incident to orderly marketing of a crop, including n‘monfl advertising and sales promo- tion. New England and not the Northwest must be looked upon by the Shenan- doah Valley producing belt as their coming competitor. Wells A. Sherman, chief of fruits and vegetables division, United States Department of Agricul- ture, told the growers. CONTINENTAI: DEMANDS FOR WHEAT INCREASING By the Associated Press. OTTAWA, February 11.—A larger continental demand for Canadian wheat is even now making itself felt. H. H. Stevens, minister of trade and commerce, said that the Argentine, if the Buenos Alres market is not too heavily regulated, will ship large quan- tities "of wheat in the next month and that this will be followed by a sub- stantial movement from North Amer- ics. particularly from Canada. He pointed out that lack of buying continental Europe has been a mar- t weakness so far this year. PR Heads Hotel Board. MARTINSBURG, W. Va., February 11.—State Senator Lewis H. Thompson was elected president of the board of directors of Martinsburg Community Hotel Corporation, operating both the Shenandoah and Berkeley Hotels here, at a meeting last night. Allen R. Em- mert was named vice president, Bonn A. Poland secretary and George H. Shaffer treasurer. The board announced there would be no change in management for H. Hunt is present AND BOND m t 1 except for Sum- | ates until August 1 excep! | completed yesterday with the filing of ciety to meet monthly, or oftener if | ‘The plea for collaboration in selling | |CLAIM SUGAR REFINERS ILAWYERS ORGANIZE NEW ASSOCIATION Trade and Commerce Practitioners Form New York Unit of National Body. By the Associated Press. NEW YORK, February 11.—Incor- poration of the Trade and Commerce Bar Association ‘a national organiza- tion of lawyers engaged in the field of industrial and trade relations.,was a certificate in the county clerk’s office. The object of the association is to supplement, net displace, the work of existing bar associations. Signers of the certificate were Wil- liam M. Chadlourne. Wilbur Cummings, Julius Henry Cohen, Richard E. Dwight, Raow E. Desvernine, Gabriel L. Hess, Benpmin A. Javits, Benjamin S. Kirsh, Nathan L. Miller, Harold Rie- gelman, Charles H. Tuttle Carl E. Whitney and Allen Wardwell, all of New York. Twenty-two direcfors were named ‘They incluéed the incorporators and the following additional men: Rush C. Butler and pilas H. Strawn of Chicago, Thomas W, Davis of Wilmington. N. C.; Oscar H Hull of Detroit and Oscar Sutro of Sgn Prancisco. The dirertors will elect officers and regional wce presidents in different sections of the country. HAVE AIDED PUBLIC By the Assodated Press. NEW YORK, February 11.—Counsel for the Sugar Institute, Inc., which the Governmest is seeking to have dis- solved as a monopoly, yesterday told Pederal lidge Julian W. Mack the sugar refhers actually had performed a public fervice in organizing the in- stitute. One efect of the institute's work, John C. Higgins. counsel for the in- stitute, siid in continuing his opening statemeny for the defense, has the brirging about of practical com- petition such as was designed or de- sired by those who drafted the Sher- man ami-trust act through the elimi- nation of unfair tactics and abusestSemi-Ready T: Bt . which lad put honest dealers at times under s disadvantage. ‘The Government seeks to have the institub dissolved and its members, who aémittedly produce practically all of the fefined cane sugar in the United States. restrained from continuance of acts aibged to violate the Sherman law and ofer acts against monopolies. Higgns challenged the statistics upon which/the Government based its clajm that the refinery’s margin of profit had incresed in large measure as a result of the formation of the institute. He said these statistics were unreliable and faccurate. Copper at Historic Low. NJW YORK, February 11 (M.-CoP- per metal yesterday fell back to fits ric low of 6 cents a pound, first lished last Autumn. stom smelters offered metal at 6 cents, off Y. Large producers, however, ';:: reported to sell the metal at that P 3 AVERAGES By the Assochted Press. Ihousmg, 5.3 per cent for **¥ A—1% RETAIL F00D COST 1S SHARPLY LOWER Survey Shows Prices Are Only 14 Per Cent Above Those of 1913. Special Dispatch to The Star. NEW YORK, February 11.—The food industry has been more successful in adjusting retail prices to reduce in- comes of salaried people and wage earners than any of the more impor- tant lines of business, according to an investment, survey released today by Frazier Jelke & Co. Food pri e 275 per cent lower than. st the end of 1929 and only 14.4 per cent higher than in 1913; they dropped 16.6 pe- cent last year and are 48.2 per cent under the 1920 peak. “As against December, 1929" the study continues, “clothing is down 15.5 per cent, furniture, 15.4 per cent; fuel and light, 11.1 per cent; rent, 6.2 per cent, and miscellaneous items, 1.1 per cent. Compared with 1913 the miscel- laneous list is up 105.6 per cent, furni- ture has jumped 67.2 per cent, fuel and light have advanced 58.8 per ce: Tents have risen 424 per cent a clothing is 35.6 per cent higher, It is obvious that other items in the family budget will have to be further deflated before they reach the new level of food and money incomes. Cost Ratios. “Government statisticlans contend that food constitutes 38.2 per cent of the cost of living, against 16.6 per cent for clothing, 13.4 per cent for light and fuel, 5.1 per cent for furniture and house furnishings and 21.3 per cent for other items. On this basis, it is figured that the cost of living index at the end of 1930 was 458 per cent above 1913, 326 per cent under 1920 and 14.9 per cent under 1929. In 1931 the cost of living dropped 9.3 per cent. “Food companies have been able to maintain their earnings in a much more satisfactory manner than manu- facturers and retailers of clothing, furniture and other items entering into the cost of living—and they have done this while reducing their selling prices more than manufacturers and distrib- utors in other lines. “Intelligent and persistent advertis- ing of established brands by constantly growing companies, the remarkable progress of chain stores in the retail grocery fleld and the increasing prefer- ence for package groceries have com- bined to add stability to the basic food industry. As compared with pre-war years, a larger percentage of the Na- tion's food consumption is of branded g00ds; but there are fewer brands. In both manufacturing and retail lines, ;k;:el:n:h be;n adsean!cexntmuan of busi- e hands of fewer com;;nm. and larger “The rate of growth in the food in- dustry no doubt has slowed percepug;y during the past two decades, due to the slower increase in population caused by selective immigration laws. For a time, an increasing standard of living among first and second generation Americans went a long way to offset ]l:aletsl&werhnlnvfir of population; but of is help: trend has pr;mnlced been less uxury consumption pr 1 decreasing but diet r-gs. wh‘l’egb::’a!: S0 many taboos a few years ago, no longer are such a serious problem. Buying Power Impaired, “Because of foreign excha S nge - ‘c’ult‘\:.s there has been a loss o‘t efplg,n usiness, but sales - businces abroad still are im. “Unfortunately, the ability of an im- mense farm population to buy manu- factered products other than food has becn impaired by the exceedingly low price of grain, hogs, cattle, cotton, po- tatoes and other staples. To a large extent, the greater decline in food has been made possible by ruinously low farm prices occasioned by overproduc- tion and loss of war-cultivated foreign markets. Cheap food should not be regarded as an unmixed blessing: it is causing a lower standa: ving rural sections.” et . New York Cotton Special Dispatch to The Star. NEW YORK, February 11.—Ope: cotton prices today were 1 point 13:"3 to 1 higher, with trading slow. The active strength of security markets, however, brought speculative inquiry into cotton after the opening. Opening prices were: March 6.44 off 1, May 6.63 unchanged, July 6.79 off | A October 7.02 up 1, December 7.1 and January 7.24 off 1. B DIVIDENDS DECLARED NEW YORK, February 11 (#)— Hlill 14 A Company. o Montr L & Mtge.. 25¢ Mar. 15 Initial, oring 3 8 Peb. 15 - Reduced. azeltine Corp 125 Sheoard Niles Cranec O Mar18 & Hoist 3% Q Mar, 1 Resumed. Gallaher Drus 7% of . ceee... 3175 Q Due Accumulated. Ltd Peb. 3 Peb. Peb. 18 378 .. Omitted. Welch Grape Juice. 25c Ex Due Regular, Amer Dock Co pf.. 32 Q@ 1 a v we S 5 Q Mar. 1 1 Q Mar, 15 Feb. 27 Feb. Feb. 29 Mar. Feu. e 3 ... T8¢ Birmingham Wat Wks 6% pf . 3150 35" A Baton Rouse Ei 53 A ¥ &l n Can Vinegars Lid: 40 Gallaner Drug pf Honolulu Gag Co_ . 15¢ Huntinglon ¥ Deo. 7% $1.78 K West El Co pf 3175 Lock Joint Pipe Co.§7c DU o anisa 000 852858 Do. pf ... Mead Corp’ pf Montr L & Mt Muncie Water W 0 8 D .. Nor Penn RR Nor Phila Trust, 1 st o SenBBE BB 8 855555 BGuch. Shis coupon . . U 8 Dairy Prd Al§i50 . 1st of L7 3d Dl ...l S Welll (Raphael) & Co Welch G Juice ‘8¢ el Do. Bt 3078 SR et P i alo B i Ttilities Inquiry, By the Assoclated Press. The Federal Trade Commission will continue examination of affairs of the National Public Service Corporation group of utilities next Tuesday, Febru- ary 16, when it will resume its hearings in the investigation of power and utilities. - The Tidewater Power Co., operating in North Carolina, will be taken up at that time. Tidewater is an operating company in the Seaboard Public Service Co. group. Seaboard, in_ turn, is a sub- olding company under National Public Service Col tion, which is controlled | by the interests. — American internal combustion engines are being used on farms in Latvia.