Evening Star Newspaper, March 25, 1933, Page 12

FINANCIAL 0. C. RETAIL SALES THE NEW YORK STOCK EXCHANGE || Stock and (CHANGES N STOCK PRICES ARE SMALL ~Prev, 1033~ Stock and HEAD LOCAL AREA - _Stores Make Best Record During Month, Richmond Bank Announces. BY EDWARD C. STONE. How sales in 32 department stores in Washington and the rest of the fifth Federal Reserve district in February and the first two months of 1933 com- pare with the corresponding periods in 1932 is pictured in detail today by the Federal Reserve Bank of Richmond. Sales 1n Washington retail stores in February were 21.4 per cent below the business transacted in February, 1932, and 19.1 per cent under the figures for the first two months of last year. Stocks on hand at the end of Febru: 1933, were 18.2 per cent lower than at the end of February, 1932. Stocks on hand in Washington stores on the last day of February were 6.7 per cent higher than on the last day of January, 1933. During the month of February store stocks were turned 271 times. In the first two months of 1933 stocks were turned .523 times. During the month 25.6 per cent of all recefv- ables were collected. Washington Leads Other Cities. ‘Washington made a slightly better retail sales record than any of the other cities in the fifth district in Feb- ruary. Richmond sales were off 22 per cent’ and Baltimore sales 28 per cent compared with February, 1932. Richmond sales for the first two months of the year, compared with the corresponding period a year ago, were off 19.4 per cent and in Baltimore 24 per cent. The average for the 32 de- partment stores in the whole district ‘was 21.3 per cent. Goods on hand in Richmond stores in February were 16.1 per cent lower than stocks at the end of the same month last year, but 5 per cent higher than at the end of January of this year, 3 In Baltimore stores the stocks on hand were 6.7 per cent above the total at the end of January. For the whole district the figure was 6.8 per cent higher, and for a group of stores out- side the three cities mentioned 4.4 per cent above the January figure. The rapidity of stock turnover was about the same in all the cities. Of the outstanding receivables, 27 per cent were collected in Richmond during the month, 20.9 per cent in Baltimore, 24.7 per cent in other cities, while the average for the fifth district as a whole ‘was 23.9 per cent, the Richmond bank announced. Traders Sitting on the Fence, Local traders, as well as investors, have watched the action of the New York Stock Exchange very closely cur- ing the past week. Market action has been disappointing as it had been hoped that more of the sharp gains would be partially held. ‘The rapidity with which Congress has acted on measures supposed to help <sentiment and strengthen the stock . market indirectly, has caused a great +deal of Wall Street discussion, but has " been reflected to no great extent in the market quotations. In discussing the +market outlook, James B. Clews says 1in his weekly letter: | “Considering that so many people are | sitting on the fence waiting for some- «thing to turn up, thus reducing the | - buying demand, it is not surprising that | .the market should have backslided a&s ‘an aftermath of the uplift which en- sued when the bank holiday was lifted. Any change in present business condi- tions apparently is on the side of im- , provement and, of course, the banking ! situation is now more stabilized. This ;should afford encouragement, taken in ‘conjunction with the constructive legis- lation which the Government is put- ting through; but until the public gets in a buying mood it is idle to expect that the market will do more than record rallies after setbacks. If busi- ,ness should pick up this Spring in steel ‘and other lines, as predicted in some quarters, that would go a long way in getting the market out of its present rut.” Savage Recalls Other Depressions. Francis M. Savage, retired local bank {president, says he recalls two financial depressions where Clearing House money -and scrip had to be used. Both were used successfully, prevented further banking troubles, the money being used : without friction and with no losses to +the users. Mr. Savage was living in Cincinnati, 1893, and another section of the Middle West in 1907. In Cincinnati he recalls buying bank stock and giving a check for it against Clearing House funds. In another instance, four banks banded together and issued their own scrip. The former Washington bankers say that the difference between the pres- ent banking situation and conditions in the past s that people now are look- ing to the Government for help, while in former depressions they looked largely to themselves. Every other depression has passed and this one is sure to do the same, Mr. Savage says, adding that greater , brosperity has followed every other for- imer setback. History will repeat it- 1 8elf, he feels sure. Insurance Restrictions Lifted. Earl D. Krewson, agency director for the New York Life Insurance Co. in the District of Columbia, said yester- day he had received word from Presi- dent Thomas A. Bucker of the com- pany stating all restrictions on loans, .cash values and dividend deposits of ithe company are withdrawn until fur- ; ther notice in the District of Columbia, | ‘Maryland and Virginia. In other ! words, normal business of the company ,Will be resumed in these States. Safeway Net $4.22 a Share. The annual report of Safeway Stores, ;Inc, (Maryland) and subsidiaries for .year ended December 31, 1932, certi- ‘fied by independent auditors, shows :net income of $4.390,227 after depre- ~ciation, interest, Federal taxes, adjust- sment of net current assets of Canadian “subsidiaries to exchange value of “United States dollars at December 31, 1932, and after deducting $150,000 pro- Vlsl(’)él for possible loss due to closed nks. This is equivalent after preferred ,dlvid('rd< to $4.22 a share on 799,518 iaverage number of no-par shares of icommon stock outstanding during the year and compares with net income in +1931 of $5415590, equal to $6.34 a -ahm‘e on 717, average common “shares outstanding during that year “and $5.68 a share on 800.350 common shares outstanding at close of the year. e e : Chesapeake Corporation. CLEVELAND, March 25 (#)—The iChesapeake Corporation yesterday re- ported net income for 1932 of $6,129,778, ;against dividends paid amounting to ©$4,049,426. There was additional profit son bonds purchased for the sinking funa amounting to $444,565 and a loss of 1$294,051 on sale of securities. ! Net addition to the surplus was +$392,879. The balance sheet showed "loans payable of $31,750,000. Invest- :ments carried on the balance sheet at -a cost of $161,835,792 had an indicated ‘ market value December 31, 1932, of £ $109,866,040. ' _—— H Lead Stocks’ Gain. ! NEW YORK, March 25 (P)—Stocks ! { of zinc in the United States at the end of February totaled 134,440 short tons, compared with 129,664 on January 31, says the American Bureau of Metal Statistics. World production was 75,61 tons last month, compared with 79,222 in January. e - e King George, most ardent of royal philatelists, has presented several rare stamps to be sold for the benefit of the Royal Ear Hospital, in London, o 1933~ Lot 5% 15% 6414 Alleghany Corp. ., 1% Alleg Corp pf $30w 113 Alleg Cp pf $30 xw 5% Alleghany Steel. 70% Allied Chem & D (6). 6 Allis-Chalmers Mfg. 1814 Amerada Corp (2)... 7% Am Ag Chem (Del).. 8 Am Bank Note - 49% Am Can (4). 112 AmCanpt (7)... 614 Am Car & Foundry. . 3% Am & Forelgn Pwr. . 6% Am&Forgn Pw pf(6) 9 Am & For Pw pf (7).. 25 Amlce pf (6). . 4% Am International 5% Am Locomotive 8% Am Mach&Fdy(80c). 3% Am Metal Co. . 4 Am Power & Light 10% Am P&L $5 pf (1%)., 12% Am P&L $6 pf (1%) 4% Am Radiator 5% Am Rolling M Am Ship & Com. Am Sm & Ref. Am Snuff pt (6). Am Stores (1233). 2 Am Sugar (2)... Am Tel & Tel (9). Am Tobacco (5). . % Am Tobacco (B) (5). 4 Am Water Works(1) Anaconda Copper. ... Armour of Ill (A)... Armour of Ill (B).... Armour of Ill pf. . Atchison Atlantic Coast Lin Atlantic Reflnlnl(l) . Atlas Powder. 14% 34 8% 814 13'% 6% 9 21y 24y 8% 10% (4 18 106 354 36% 1613 12% 9 61 31% Auburn Auto (2) 513 Aviation Corp (Di 8% Baltimore & Ohio. .., 9% Baltimore & Ohio pf. 68% Bamberger pf (615) 3 Barnsdall Corp. . 27 Bayuk Cig 1st pf. 45 Beatrice Crm pf (7). 614 Bendix Aviation Borden Co (1.60) 5% Borg Warner. . 21% Bklyn Manhat Tran. 64 Bkiyn Man Tr pt (6). 1% Brunswick-Balke. % Budd (E G) Mfg 3 Budd (EG) Mfg pt. 6'4 Burr Add Mach (40c)., 3 Bush Term deb stk. . 815 Byers (A M) 7% California Packing, T's Canada Dry G A (1). 7% Canadian Pacific 301 Case (JI) Co.. 40% Case (J1) pt (4) 513 Caterpillar Tractor. ., 14 Cent Aguirre (1%).. 5% Cerro de Pasco. . Checker Cab Mfg. % “hes & Ohio (2% Chesapeake Corp (2) Chi Great Westn pf. . Chi Mil St P & Pac. .. Chi Mil StP & Pac pf. Chi & Northwestern. Chi Rock 1 & Pac Chrysler Corp'n. Coca-Cola Co (7). ... Colo Fuel & Iron.... Coiumbia Gas (b1).. Columbia Pict vte. Columb Carbon (2)., Comcl Cred pt (1% Comel Cred 1st(615 Comcl Cred pf B (2 Comel Inv Trust (2 Comel Solv (60c) Comwlth & Southn. . Zonsol Film pf. . Consol Gas N Y (l). . Consol Gas NY ptf(5) Consol Oil Corp. .... Contl Baking (B)..., Contl Baking pt (4). & Contl Can (2). Contl Diamond Contl Insur (1.20) ). ) ) ) Contl Ol (De Corn Products Coty Inc. . Cream of Wht "‘" Crosley Radio....... Crown Cork & Seal Crown C&S pf (2.70) 16 Crucible Steel pf. 2% Cuba RR pf. 1% Cuban-Am Sug: 30 Curtis puhlhmng ot. 1% Curtiss-Wright. % Davison Chemical... 6Ly Deere & Co pf (20¢). 37% Delaware & Hudson. 17% Del Lack & Westn. .. 51% Detroit Edison (4).., 12 Dome Mines (11.30), Drug Inc (3)..... 3214 Dupont de Nem (2). . 997 Dupont deN db pf(6) 50’ Eastman Kodak (3). 11% Elec Auto-Lite 1 Electric Boat 3% Elec Pwr & Lt. 7 Elec Pwr&Lt $6 pf. 8% Elec Pwr&Lt $7 pt 21 Elec Storage Bat (2). 67 Equitable Of BlA(1).. s Evans Auto Prod. ... 1% Fed Water Service A 12 Fidelity-Phoen 1.20. . 42 Firestone T&R pf(6) 43 First Nat Strs (2%). 13% Fourth Nat Inv 1.10.. 1% Fox Film (A).. 13% Gen Am Tank Car(1) 2% Gen Bronze. ... 10 Gen Electric (40c 11% Gen Elec spec (60¢). 21 Gen Foods (2). . Gen Gas & Elec (A) .. Gen Mills (3).. Gon Mills pf (6). Gen Motors (1) Gen Motors pt (5)... Gillette Saf Raz (1). Gimbel Bros. Gimbe: Bros p. Glidden Co. . Gobel (Adolf). Gold Dust, (120) Goodrich (B F) . & Goodyear Tire&Rub. < Gotham Silk Hoslery Graham-Paige. . Great Northern pf... 5% Great Northern Or 7 Great West Sugar. 6% Gulf States Steel 1% Hahn Dept Store: 45% Hanna pf (7). 694 Helme (GW) H'l . 15 Hercules Powder 11/. 87% Hercules Pow pf (7). 1_ Houdaille-Hersh(B). 1% Houston Oil (new).. Hudson Motor Car Illinois Central. 27% Industrial Rayon 2) 19%. Ingersoll-Rand(1%). 2 Inspiration Copper. . 2% Insuranshrs Del 16c. 114 Insuranshares (Md). 4% Interboro Rap Trans, % Int Agriculture. . 5 Int Agriculture pf.., 2% Int Carriers Ltd 20c.. 581 27% 1% 15% 381, 43 106 31 183, 63% 2% 20% ‘WHOLESALE PRICES. Butter—One-pound prints (93 score), one-pound prints 21; tub, 20; one-pound prints 19; one-pound 22; tub, 21; score), (91 lcore), 20; tub rintd (90 score), 19; Egus—l-lennery whtte ul mss :ur Government standards, 16%; Poultry, nlhe—'nukeys. hens, young, | 13al4; old. rent receipts, 10%allls; ) graded, extras, 1813; mediums, 1515 16a20; 8a10; hens, stags, old, 12al4; foms, chickens, hens, 13; 10; Winter chickens, 8ai0: roosters, 6a7; n Rocks, broilers, 20a23; {ryers, 17a19; 17a19; mixed colored chick: | ens, 14a16; keats, young, zsm:. &ld. roasters, 15a20; clpom. 7 to 9 pounds, 1 pounds, 1 Poulh’y dressed — Turkeys, young, 19a23; old, 15a17; toms, young, Atlas Powder pf (6). 200- 33 2 » A B 0 3 5 oo I - 0 PSPPI FOIOPNOPS- IO TSTOeL JOTVIVE: 91 1o0™) mnandnanans wONE (92 4% 13% 5% 13% 1 ol 119 9 5.5086.00 sweets, 00a75 old, 13% 58 13% 1 1% 1% 5% 8% 8 21% 11% 11% 561 AddN.!!lth. Low. Close. l?hfl 4% + 4 -5 llllllll‘_I IRaps SE B0 % b e & + = (il s = +1 L4011+ PEFEREF L IS i:'++ 441 1 FEE REFFE & r @ +11 EEE FREE FEF B ®OFRFEF L+ + & + W FEFTE FERFEE F§ FTESFITEFEESTE & s & High. 914 25% 6% 9y 18% 18 40 814 2% 23% 3T ‘1% 10% 19% 34y 615 117 G 21% 130 111 7% 4 311 46 173 T 31 1 45% 3%, 10% 5% 34 141 25 3 17% 6 4% 4 28% 11% 807 28% 15 104 373 351 20% 5 23% 27w 10% 5% 23% 33% 6714 26 4% 14 6% 208, e 5% Dividend rates Dayments based on 5 Unit of trading 4% 1in stock. stock. 2% in nmk stock. 18 Low. Dividend Rate. 634 Int Cement 13% Int Harve 3 Int Hydro-Elec lA)- 6% Int Nickel of Can. 15% Int Salt (1%). 9% Int Silver. . 24% Int Sflver pf. 5% Int Tele & Teleg..... 1% Interstate Dept St 12% Johns-Manvill 3% Kelvinagor Corp. .. 30 KendallCo pf (6). 7% Kennegott Copper. .. 51 Kresge (SS)........ 14% Kroger Grocery (1).. 22'% Lambert Co (4)..... 3% Lee Rubber & Ti 374 Lehman Corp (2.40)., 49 Liggett & Myers(15) 49% Ligg & Myers B (15). 14% Lily Tulip Cup (1%). 10% Liquid Carbonie. 815 Loew's Inc (1) 40 Loews Inc pf (615).. 10% Lorillard (P) (1.20).. 21% Louisville & Nash 13~ McCall Corpn (2). 18 1% McKesson & Robbins Mchefl!por! TP 4). Mack Trucks (1).. Macy (RH) & Co (Z). Mallison & Co....... Manhat Elev mod gtd 4 Marine Midld (80c). . Marshall Field & Co. Mathieson Alk (1%). Mengel Co. Mengel Co pf. Met-Gold Pic Minn Moline Pow. ... Mo Kan & Texas..... Mo Kan & Texas pf. . Missourl Pacific pf. Montgomery Ward Motor Products. Mullins Mfg. . Nash Motors (1). . 2 Nat Biscuit (2.80). Nevada Con Copp N YCentral...... NCCM&S(LD!.... N Y N H & Hartford. N Y Ont & Western. . N Y Shipb'ldg (10c).. Noranda Min (a1.10), Norfolk & West (8).. North Am Aviation. . 17% North Am (b8 %stk). 32 North Amer pf (3) 101 Northern Pacifie 4% OhfoOll....... 1% Oliver Farm Equip. 104 Otis Elevator(60c)... 311 Owens I1l Glass (2).. 21% Pacific Gas & El (2).. 28 Pacific Lighting (3) 1% Packard Motor Car.. '2 Paramount Publix... 6 Park & Tilford % Park Utah. % Parmelee Tran‘!pvr!. % Patha Exchange. Patino Mines. s Penick & Ford (1). Penney (J C) (1. 20).. Penna RR (h50c).... Phelps Dodge . Phila & Read Phillips Petroleum. . 1 Pierce Oil B 4 Postal Tel&Cable pf. % Pressed Steel Car. 19% Proctor & Gam(1 ‘6). 37 PubSveNJ (2.80) Pullman Corp (3)... 215 Pure Oil. .. 30 Pure Oil pf 5% Purity Bakeries Radlo Corp.. 615 Radio Corp pt (B). 213 Remington-Rand. 4 Republic Steel. 9 Republic Steel 6 Reynolds ME!I[’(P) 261 Reynolds Tob B (3). 3% Rossia Ins of Amer.. 28 Safeway Stores (3).. 80% Safeway Strs pt (7). 6ia St Joseph Lead % Seaboard Air L 12 Seaboard Air Line p! 1213 Sears Roebuck . 113 Servel Inc. 115 Sharon Steel Hoop. . 23 Sharp & Dohme....., 4 Shell Union O11 4% Simmons Co 6 Socony Vac: o 58 SolvAm pfww(5%). 15% So Port Ric Sug 1.60. 18% Southern Cal Ed(2).. 11% Southern Pacific. ... 4's Southern Railwa; 5% Southern Railway p! % Sparks-Withington. . 13% Standard Brands (1). T% Stand Gas & Elec. . 191, Stand Oil Calif (2) 22% Stand OIINJ (1) 2% Siewart Warner. 5% Stone & Webster. 215 Studebaker Corp 2 Superior Steel. T Tenneasee Corp: 10% Texas Corp (1).. 15% Tex Gulf Sulnh\lr(l) 4 Tex Pacific Land Tr. 33 The Fairpt.. 4'% Third A\'enue. . 3'a Tide Water Asse 1'3 Timken-Detroit Axle 13% Timken Roller Bg(1) 2% Transameriea Corp. . 2% Tri-Contl Corp. 2 Truscon Steel. 19% Union Carb&C (1).. 8% Un Ol of Calif (1) 64% Union Pacific (§) 16% Unit Aircraft 10% Unit Carbon. 5% Unit Corp (40c). 29 Unit Corp pf (3). 23% Unit Fruit (2). 151 l'nll Gas&Im (1.20). 314 US & Forn Secur 18 USGypsum (1). 13% U S Ind Alcohol. 6% U S Pipe&Fdy (50c). 2% U S Rubber.... 13% U S Smtg & Ref (1). . 23% U S Steel. 53 U S Steel pt (2) Univ Leaf Tob (2)... 4 Util Pwr & Lt (A)... % Va-Car Chemical. . 3% Va-Car Chem 6% pf. 12% Vulcan Detinning. Warn Bros Pictures, Wesson O & Sn (50¢c) West Pa Elec pf (7). Western Maryland Western Union. . % Westing’se Air B(1). Westinghouse Elec. . Willys-Overland Woolworth (2.40). 14 Worth’'n Pumppf A.. 34% Wrigley (Wm) (3) 2% Yeliow Truck 3% Zonite Products. given in the abo e latest quarterl, 1% 4 e Payable in cash or stock. © Payable in scrip. Mclntyre P M(11%). ~ less than 100 shares. t Partl 8 Paid this year—no regular r.-u’ 3 Pas 4 Plus S1 in special prefe m Paid last year—no regular r:a“ +||ll:|+ N FFE FRRFEIEFEREFIE [N} o | L I FEE FF Za +4+ @ U P {0 e e PEFEF F PFEEFIV FEFER 2o amanualranIretBalon nnferSrasdnralnunBnon abeNamanmne © . F ¥ FEFE ¥E PE5 SESREESE EE £ FEE + + & el | ++ F OFEF FE FF iy & | + s o] 8 [l FER F OF R OFEE E F FESF RIEEF &S - 3 % ) ve table are the annual cash y or half-yearly declarations. $ Plus b Payable in stock. h Plus stock. kPlus 3% in nPlus 5% in stock. {Plus 8% in stags, lufl; old, 11a13; horn 18a19; Plymouth Rocks, 2]0,:2:, roasters, chickens, 17a19; keats, Old. 18a23; caj 5 to 6 pounds, 1 Meats—Beef, 11; pork loins, 13; fres | hams, 13; | compound, Pmm—o and M\llcnleh !251400 lemons, 4.50a5.5¢ .z'ls umes, 13; 1 20a2: Arge apples, nectarines, 1.75; honey- plnnppla, 4.0024.50; cal 85290; turnips, 7 chickens, hens, 16; Winter chickens, 13; roasters, brolers, 23a25; fryers, 2; mixed colored young, 28a43; PO;IS. 7 to 9 pounds, 21; lamb, 12; veal, 12; sh hams, 12; smoked ;mp bacon, 13; lard, 7%; entina, Almedm oranges, per 100, 2.00; strawberries, tangerines, ba- 7522.25. dews, 1.50a1 7! r 4.00; pears, box, 2258243, Vegetables — Potatoes, Maine, New York 1.10; Florida, new, barrels, Idaho bakers, 215-25 celery, 3.00a3.25; 9a10; tomatoes, peas, crates, corn, 3.00; 250!650 crates, 6. so 75-100 kale, ; beet tops, 75. 2.50a grapefruit, 2.50 fancy box 88.64; Dears, 2.508 | tome duties 1 125; | $11.971,449.45. l.50l2 75; limas, !.00-:,25 repacks, Z lugs, 1.50a2.50; caulifiower, 1.60al. carrots, crates, 125 beets, crates, 1.25; Metl 35004, -30a35; new sgrlnc nle, U. 8. TREASURY BALANCE. By the Associated Press. Treasury receipts for March 23 were Sll 290,619 ; balane S new_ Chinese wnon nplmnhn!u ( 25000 n of e spindies s lettuce, ing beans, 3-pan, 75 050‘ baskets, 3.50a4.00 hothouse, 1.50; turnip expenditures, $12,099,- ce, $540,957,1 !ll 'fl Cun- or 23 days of ; ABOUT DOING SOMETHING DIFFERENT FOR A CHANGE? UTILITIES HOLOING FIRMS FEEL SLUMP Many Companies Forced to| Reduce or Suspend Divi- dend Payments. Special Dispatch to The Star. NEW YORK, March 25—The ad- ministration’s rajlway consolidation NEW YORK, March 25.—The posi- tion of the public utility holding com- pany in the present emergency is a matter of concern for a large body of investors in their common and pre- ferred stocks. With the earnings of the operating units decreasing and taxes increasing, the margin of sur- plus available for the parent com panies has been steadily falling. As! a result, each week sees a considerable addition to the list of concerns com- pelled to reduce or pass dividends on both their junior and senior shares. ‘The momentum of this movement has | grown since the bank holiday. Last week there were half a dozen holding companies that either lowered omitted the 6 and 7 per cent divi- dends on their preferred stocks. The | number has been extended this week. Have Helped Subsidiaries. For the past six months there are about 30 instances on record of hold- ing companies that have found them- selves unable to continue former rates of dividends on their preferred stocks and a large group that have omitted payments on their common stccks. Two of the most conspicuous holding com- panies, from the standpoint of the number of different classes of pre- ferred stocks represented in their capi: tal structure, have suspended all pay- meRts on these issues, which previously paid to their shareholders $30,000,000 | a year. 3 The criticism of the holding com- pany has been that it is taking an un- due portion cf earnings from its op- erating units. It is one emphasized by State officials in their proclamations | concerning closer regulations in the power and light industry. Actually, however, the situaticn today is reversed, for in several notable instances the holding companies have been com- pelled to help out the companies in the fleld. This has been responsible for the policy of conserving cash by cut- ting down or eliminating dividends on holding company stocks. The speculative attitude toward pub- lic utility holding company shares has completely changed since 1929. Then the common stocks of the prominent holding companies became the vehicle for some of the most flagrant of all of the manipulations on the New York Stock Exchange and in the Curb Mar- ket. These “equity” stocks frequently sold from 50 to 70 times their gross earnings and went to a level averaging nearly $200 a share. Some of them did not even pay dividends. These same common stocks are now quoted at a few dollars a share and their pre- ferred stocks at apprcximately one- tenth of their par value of $100 a share, Hostile Public Opinion, It is believed that eventually there must be a recasting of the entire cap- ital structure of a number of these public utility holding companies, as their c%gaclty to continue payments of dividen on their stock and at the same time maintain interest on a huge mass of long-term debenture bonds is permanently affected by the demand from all parts of the country for a re- duction in rates of service and the elim- ination of service charges. Unfortu- nately many of these companies were organized by promoters who had only a speculative interest in them. Quite a few already have fclded up, involving tiemendous losses by investors in their securities. Public opinion generally is | hostile to this type of corporation, | which is regarded as a parasite and| one that takes an indirect toll from the consumer of all forms of electrical energy, as well as those of water com- nies which, in recent years, have g:en gradually coming under the in- fluence of the holding companies. For nearly a year after the crisis developed in 1929 the public utility companies ccntinued to show excel- lent earnings. It was not until toward the end of 1931 that the effect on them of the industrial decline became apparent. Even then the loss in this direction was offset by the increase in the domestic usage. The fall in earn- | ried to unnecessary lengths,” he said. | portation Committee, which said that | | “the development of regulation and of | mal, as clearly indicated by the report program, which is expected to be made public soon, will contain many drastic modifications of recent plans, it was explained in transportation quarters here today. The scheme for the grouping of the Eastern lines into four major systems— achieved only after 12 years of arduous labor—appears doomed, it was said. While utilizing many of the principles worked out by the Eastern executives, the Roosevelt plan, it is understood. | will discard the general theory of voluntary consolidations, and substitute therefore legislation aimed to expedite the merging process. ! Past Formative Stage. | Such an unprecedented development | stage. It is known that A. A. Berle, a | member of President Roosevel “brain trust,” has been most active in studying the problem in conjunction with several of Wall Street's outstanding railway bankers and some officials of the large | insurance companies. Representatives of J. P. Morgan & Co. and Kuhn, Loeb & Co., are among those who have | been in touch with Mr. Berle. Fred- erick Prince, prominent Boston banker, | has also been actively working on the | problem, and the final admigistration | conclusions, it is reported, Wil be a | blend of these various findings. I The plan, if adopted, would necessi- tate, first of all, the amendment or re- casting of the zrl.nspofrtan%n act whxcflh specifically provides for the preserva- Hpon of cgmgeutian between a limited | number of systems. A clue to the Roosevelt philosophy on this point, executives state, is found [in his speech in Salt Lake City on Septemlwr 17. “I believe the policy of enforced com- | petition between railroads can be car-| This sentiment found echo in the | recent report of the National Trans- new methods of transport make it un- | necessary for the Government further | CHANGES IN EASTERN RAILWAY MERGER PLANS HELD LIKELY IPresent Scheme for Grouping Eastern Lines May Be Discarded. Other Seven Systems Considered. m create and foster competition with | or among railroads as a defense against monopoly.” While details of the administration's plan are, naturally, not vet generally known, it is believed that they will reveal a scheme for seven rezional | systems, somewhat along the following | lines: In the East, two svstems, to include the Pennsylvania, Baltimore & Ohio and certain New England rcads;: the second to include the New York Central, the Van Sweringen roads | and certein other New England com- panies. In the South, two systems, the first | | to comprise the Southern Railway, Illi- | nois_Central ¢ad ’Frisco lines east of | | the Mississippi: the second, the Louis- |ville & Nashville, Seaboard and At- OF | js reported to be far past the formative lantic Coast Line. Other Systems. One system for the Southwest to take in the Santa Fe, 'Frisco lines west of the Mississippi and other South- western carriers. One system for the Central West to be made up of the Union Pacific, South- ern Pacific, Rock Island. Northwestern, Denver & Rio Grande Western, Western PP( c and Kansas City Southern. system for the Northwest to | | imelude The Burlington. The Northern Pacific and Great Northern, and other ' | Northwestern systems. Such a development would be in line with the recommendation contained in the National Transportation Commit- tee’s report which suggested that the carriers be merged into regional sys- tems “looking eventually to a single national system with elimination of all excess and obsolete lines and equip- ment.” Railway executives here contend Xhat i 8 national system is “visionary,” in that it is too unwieldy to be practical. \They also vigorously challenge current estimates of a $700,000,000 annual sav- ing 1n operating costs as a result of consolidating the roads into seven regional systems. There is no past ex- perience upon which to base any such an estimate, they contend. BANK CLEARINGS CLOSE TO NORMAL FOR WEEK By the Associated Press. NEW YORK, March 25.—Banking | operations again are nearly back to nor- | of bank clearings. The total for this| week, for all leading cities in the United States. as shown by the records of Dun & Bradstreet, Inc,, of $4,681,- | 380,000, is only 0.5 per. cent under that of a year ago. New York City clear- ings of $3439,632,000, show an 1n-l crease of 4.8 per cent, while the total | for leading centers outside. of New | York of $1,241,748,000 is 11.4 per cent | smaller. In addition to New York City, bank clearings are in excess of the amount of a year ago at Buffalo, Dallas, Louis- ville,” Minneapolis and San Francisco. At _some other important centers the | reduction from last year is very small, among the latter being Pittsburgh, St. Louls, Cincinnati, Omaha and Seattle. Very rapid strides are shown in the progress toward betterment, clearings this week being double the amount of the preceding week, the increase amounting to no less than $2,307.867,- 000, whereas last year there was a de- cline of $425.577.000 in clearings cov- | ering the same two weeks. The aver- | age daily, too, for this week is larger than at any time since April of last | year. The report for leading centers, | showing increases and decreases, as | compared with same period & year ago, | follows: Week Ma: Boston .. Philadelphi Baltimore Pittsburgh Buffaio . Chicago l’l‘nl: s ln Thnllundl) 1 Min: ings from the high of 1930 amounts to mount 7 per cent, and, in the amount :r energy generated, to 17 per cent. Huge Tax Payments. Meanwhile there has been a steady increase in the percentage of taxes to gross earnings. Last year the electric utllmes paid out over $200,000,000 in taxes. This subtracted 10 cents from every dollar of gross earnings. The high tax item is anotber one of the elements that has adversely affected the position of the owner of both the holding and operating company com- mon and preférred stocks (Copyn:ht 1933.) "m Regent” diamond was sold Louwsville Dallas . Seattle .. Total . New York Total, all NEW BOND ISSUES. NEW YORK, March 25.—New bond issues formally offered in the New York market '.hh week totaled $625,000, at lllcwn in Paris recently for lel 375, par exchange. of m hnwea-umou year ago. PINEAPPLE GROWERS ADOPT 10-YEAR PLAN Co-operative production and market- ing of Hawailan pineapple—a policy adopted last year when the industr; was hard hit—has proved so successful that a 10-year program along these lines has been adopted by the principal companies operating in Honolulu. The original agreement was for 1932 and 1933, but early this year it was seen that a longer period of joint control would be advisable, and so a conference of representatives of the companies was called in San Francisco. The 10-year program was adopted with the support of all concerned. One of the results of the original agreement, which is expected now to be continued, was the national advertising campaign in newspapers and magazines. This campaign is credited with helping to dispose of the carryover pack and opening up a new and wider market fcr current output. The Hawaii companies, which have greatly restricted their crops and packs for the last year and a half. are optimistic over the vrospect of stabilizing the industry in 1933. (Copyright. 1953.) e An interisland air service has just been_inaugurated in_the Philippines. IF— You are a Good Salesman; IF You Have a Cars IF You are Willing to Work Hards IF You are Clean Cut, Trust- worthy and Upright; IF Want to Make $5,000 a Year; IF Pes mection; Apply at once, Mr. Smith, S Manager, PARK TERRACE HOMES, ‘Want NEW-HOME DEVELOPMENT. Executive Office, 1420 K St. NW. Phone Nat. 8040 the first Trading Remains at Low Point—Better Trade News Disregarded. BY GEORGE T. HUGHES. | Special Dispatch to The Star. NEW YORK, March 25.—The stock market in today's short session dis- played even less enthusiasm than yes- terday, when it struggled vainly to establish a definite trend. The mod- erate recovery earlier in the week ap- parently had robbed stocks of much of their vitality. Interest in securities was at low ebb and after a short opening flurry trans- actions were very light, barely enough to keep the ticker moving. Here and there in the list were special issues that displayed a heavier tendency, but gen- erally speaking price changes were un- Lr::goflam and without special signifi- ce. Rail Issues Watched. ‘There was little in the news to stimu- late buying in the share market, al- though there was nothing of & dis- couraging nature either. Railroad is- sues were watched with interest for any response they might make to the news that further economies were to be forced on the carriers. The President contemplates the appointment of a “Federal co-ordinator of railroads” with broad powers to effect economies in operation. This official would have the power to direct the elimination of “wasteful practices” and aimless com- petition among the railroads Railroad shares were lower at the opening and displayed no disposition to reverse the markct trend. A few rails extended their initial losses in later trading. Declines ranged from fractions to a point, but were due to neglect rather than selling pressure. Louisville & Nashville sold at 30, a loss of a point. Car loading for the week ended March 18 showed a moderate increase over the previcus week, but a decline from the same week of 1932, Loadings' of revenue freight in the week totaled 4497712 cars, an increase of 11.809 over the previous week The decline ©of 135,047 under the like week in 1932 was due, of course, to the Nation-wide banking holiday. = Railroad earnings' repcrts made public today showed a drop in income. but not drastically so. American Telephone was the most active stock on the list, moving within a range of about 2 points. Telephone closed last night at 937, and this morning declined to 913;, then rallied in the late trading. Stockholders of American Telephone assemble next Tuesday for their annual meeting and there is considerable interest in the session. Some statements may be forthcoming bearing on the dividend. Industrial List Dull. Corn Products Refining declared its regular quarterly dividend of 75 cents on the common and United States | Smelting declared its regular of 25 }cenw on the common. Sparks Withing- {ton took no action on bla | cumulative preferred due at this time. There were a few weak spots in the | industrial list, notably du Pont and J. I Case. Bank s were weak. The commodity markeis were spotty, | with slight improvemex me grains. _ | NEW YORK . (i 510CKS | NEW YORE h 25 (P).—Over- the-counter market: ) (Quotations as of 10 O'clock.) Trust Companies. Bankers' (3) . | Brookiyn_Trust " {id | Central Hanover ( Chemical (1.80) Continental (1.201 " Corn Exchanse " (4) Empire () - rer 3 Title Guarty & Tr. (4.80) —Includes extra, 15% Secured by First Mortgages Safe—Conse || Wm. H. Saunders Co., Inc. REALTORS Dist. 1016 1519 K St. ruatice You've been WAITING for this . .. A policy with all the features of @ ordinary Life . . . and with a first-year premium as low as term insurance. 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