Evening Star Newspaper, May 21, 1933, Page 49

Part 6—14 Pages 7 FINANCIAL AND CLASSIFIED he Sunday Star’ WASHINGTON, D. SUNDAY MORNING, MAY 21, 1933. Classified Ads Pages 5 to 13 MUTUAL INSURANGE COMPANY REPORTS RECORDS IN' SALES Acacia’s Regional Conven- tions Have Stimulated Busi- ness Throughout Nation. EXNICIOS JOINS FIRM OF INVESTMENT BANKERS Proposed Blue Sky Law Praised by Former Senator Sutherland as Confidence Builder. i | i BY EDWARD C. STONE. ! Under the stimulus of regional con-| ventions attended by President William Montgomery of the Acacia Mutual Life Insurance Co., agents in all parts of the country, are establishing new high rec- ords for business volume. At each convention President Mont- gomery’s colorful story of Acacia’s de- ‘velopment over a period of four decades | from 1893, has brought an enthusiastic | response resulting in a remarkable in: crease in applications and total busi- ness. This week two regional meetings are scheduled—Atlanta, Ga., and Dallas, ‘Tex. The first regional meeting was_held prior to the bank holiday, at San Fran- cisco, despite the extremely adverse conditions existing at that time, the 121 agents wrote approximately $1,850,- 000 of business. Reflecting the improvement in the general situation is the result of the Atlantic City meeting, which came after the moratorium, when 101 agents wrote $1,853,000 of business on more than 550 applications. The Chicago group of branches, meeting next, wrote $1,944.890 from the stipulation period of April 10 to May 10. The 124 agents brought in more than 665 applications. The next meeting was at Columbus, ©Ohio, where 83 agents succeeded in writing $1,144,800 of business on 389 epplications. Exnicios Joins Jones Firm. An announcement of interest to the financial community was made yester- day by Robert C. Jones, head of the investment banking firm of Robert C. Jones & Co., that Marshall O. Exnicios had become associated with his firm as vice president. Mr. Exnicios has been in the invest- ment banking business in Washington for the last 10 years. During this period he has been connected with some of the large financial houses of the country. In 1929 he opened the Washington office of Chase Securities Corporation of New York, as sales manager for this territory. Since the merger of Har- ris, Forbes & Co. with the former he has been resident manager of Chase, Herris, Forbes Corperation. Mr. Exnicios is a graduate of Dart- mout College and the Amos Tuck School of Business Administration at that institution. Prior to entrance into business in Washington he was for two years with the National City Bank of New York. He has a large acquaintance here, is a member of Chevy Chase, the Racquet and the Riding and Hunt Clubs. Sutherland Lauds Blue Sky Law. United States Government super- vision of the issuance of securities un- der the new securities act will hasten the return of confidence in the finan- cial leadership of the country and will make possible new capital flotations many months before it would have taken place if the Government had not intervened, in the opinion of former Senator Howard Sutherland, who re- cently resigned as Alien Property Cus- todian to accept the presidency of the Fidelity Investment Association. “The national ‘blue sky’ law,” says . Benator Sutherland, “will divert mil- lions of dollars from the hands of un- scrupulous promoters into the channels of legitimate investment and will do as much to bring money out of hiding as the establishment of the banks of the country on a sound basis.” Mr. Sutherland has just returned from a trip to London, where he ob- served the working of the British se- curities’ act and came to the conclusion that it alded, rather than hindered, the honest promoter who was seeking only a fair profit for his work. “The United States act,” he adde 'will pre- vent tying up the public’s money in highly speculative projects, which are better financed by private subscription until they have reached the point where an earnings record can be fur- nished.” Merger Plans Progress Steadily. Merger plans aimed at uniting six Yocal financial institutions into one new bank to be known as the Hamilton Na- tional moved rapidly during the week. Headed by E. C. Graham, this con- solidated bank hopes to open for busi- ness in a short time and free 50 per cent of the present frozen deposits. he merger campalgn started by the ational Bank, also includes nac Savings Bank, Federal- National Bank & Trust Co., ‘Washington Savings Bank, Northeast Savings Bank and the Woodridge- Langdon Savings & Commercial Bank. where in the Sunday Star, these six banks will push the sale of the new stock hard during the coming | week. A particularly interesting fact in | this connection is the statement that the unit banks will t have to raise ch new capital for the merged have been re- This | the Pof American cquirements. consolidated bark hope to get more banks into the fold so lin National Bank own drive to reoper 1al Savings Bank is anxious to become na- tionalized and continue as a separate institution. Others are hard at work on their own problems. The next few days, probably the present week, shoul determine exactly what banks are compose the Hamilton National Treasury officials have declared for years that there ere too many banks in Washington. Putting six or more into one institution will cause Government satisfaction. ng its 1d to U. S. MONETARY GOLD STOCKS ARE UNCHANGED By the Associated Pre: Monetary gold s of the United States remained unchanged during the week _ended May calculated by the Reserve Board. Frank- | wide | 17, as the total was Vice President LOCAL FINANCIER TO JOIN INVESTMENT HOUSE. MARSHALL O.. EXNICIOS, Who has just become associated with Robert C. Jones & Co. He is best known in the financial district as resi- dent maneger of Chase, Harris, Forbes Corporation. —Underwood Photo. 1IPSWING IN BONDS PUTS HANYISSES ATHGHS FORYEAR Gains Are Well Scattered Through List During Week’s Trading. Special Dispatch to The Star. NEW YORK, May 20.—Many bonds this week have reached new high prices for the year, with a revival in specula- tive interest in them after the reaction at the end of the previous week, when profit-taking became an important factor. A new feature has been the strength in industrial issues, which had been neglected during the movements of great size in rails and public utilities. It represents an appreciation of the improving condition of trade, out of which the bonds of companies that have been “in the red” for months should benefit. Interest in Junior Bonds. While the market has attained a broader character it has not lost the benefit of a wide public and professional Interest in junior railroad bonds. These have continued to express the mood of the buying interests, as it fits in more closely with what is being done in the market for common stocks. Beginning with issues that were quoted chiefly in the price levels between 10 and 20, and of which a number were either in de- fault or approaching the period when interest on them would be suspended, the demand has reached into issues of second and third grade, or those previously quoted in the 30s, 40s and 50s. This latter group is the one in which the best buying has been taking place this week and in which most of the new high prices for the year have been made. This demand has been predicated on the increase in railroad car loadings, which in some instances now exceed those of a year ago. It is realized that a moderate expansion in traffic would represent the difference between the deficit of 1932 and ability to cover fixed charges in 1933. Most of the roads whose intermediate bonds have been strong recently are those of normally high credit, including New York Central. Southern Pacific, Great Northern, Northern Pacific, Illinois Central and Chicago & Northwestern. All of their junior bonds have this year sold at 50 cents or less on the dollar. There has been a steady tone to the market for the first grade rails, which apparently have about reached the maximum level consistent with present circumstances. ‘The strength in the industrials has not been confined to any one group. It has included bonds of the rubber and tire companies, of the oil pro- ducers, in spite of the chaos in the oil industry; of paper manufacturers, iron and steel corporations, chain stores, meat packers and sugar pro- ducers. Many of the bonds that have been conspicuous are ordinarily inac- tive and are subject to sharp fluctua- tions on a limited amount of trans- actions ‘The public utilities have been less prominent, although the legal issues have improved considerably. In spite | of this, however, a comparison of the | low prices of the year of many of the| public utility debentures and third rate | operating company issues shows about | the same percentage of increase as in | the lower grades of rallroad obliga-| tions. Foreign List. Operations in the foreign list have| been influenced by the German political { situation. At first this aroused con-| cern over the possibility that Chan-| cellor Hitler in his speech to the Reichstag might provoke further dis- cord. The conciliatory tenor of his address quieted these ‘alarms and led to a recovery not only in German loans but in other European lssues. | Markets for United States Govern- ment bonds this week have been quieter and less uniformly strong than in the week previous. There has been no evi- | dence of buying by the Federal Reserve | Banks. The proposal of the adminis- | tration to issue additional bonds, which will bring the total Government debt up to a level exceeding that in wartime, the market. ) | | | | i | | has given a little chill to (Copyright, 1 TIN PRICES ADVANCE 14 CENTS IN 70 DAYS ‘ Special Dispatch to The Star. NEW YORK, May 20.—The advance of 14 cents a pound for tin within the last 70 days here has been occasioned | by prospective inflation, strengthened | | statistics, exchange fluctuations and in- creased consumption. | _Tin responded more easily than other |me‘taLs to prospective inflation because its production, thanks to the interna- | | tional tin restriction scheme, was closely ! controlled snd its consumption during the depression had declined relatively less then that of other non-ferrous metals. | Price Advances Predicted. Speculative ~ Forces Are Quickened by Expectancy of Inflation. IMPROVEMENT IN TRADE HAS AIDED SECURITIES Delay in Rehabiliating Closed Banks Is Retarding Busi- ness Recovery. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, May 20.—It is now six weeks since securities and commodities first recognized the stirring of new speculative forces based on the ex- pectancy of inflation. Meanwhile, there has been an average advance in com- 1 mon stocks of 20 points, with the pres- ent average 30 points above the low of March 2, and one of about 9 points in bonds. Commodities have had a rela- tive gain. The rise in these different groups has been censistent with the de- !cline in the dollar. Inflation so far has been the product of a state of mind. It has not been mechanically set in motion. To some the delay in exercising the privileges granted in the farm bill suggest that the administration wishes to deal with in- flation psychologically so long as this is possible; to make business better and lift the price level by intimation before resorting to an expansion in the cur- rency through Federal Reserve pur- chases of Government securities. In this it has been eminently successful. This week's record of trade statistics all point to a further expansion in the volume of domestic output and con- sumption. We are beginning to have roof that in some directions industrial activity exceeds that of a year ago. Markets Forecast Trend. It is the history of all panics that they are followed by a rise in securities, which the average man cannot under- stand and which appears to contradict current conditions of business. There are many now skeptical of the rise in stocks because it does not conform to logic in view of the depressed state of their own corporation affairs. Markets may be said to have an intuition that is rarely at fault in its prophecy of the trend of industry. They frequently forecast a turn six months to a year in advance of it. This is apparently what is now happening. Business as well as securities had been thoroughly liquidated early in the Sprm¥. A recovery in securities was logical whether or not it received the impetus of proposed tion. The movement so far has been as much due to natural conditions that reasonably made for appreciation as to speculative operations based on inflation. The change had come. Those who were shrewdest and had deepest insight into the state of the business world recog- nized this and made their commitments accordingly. There was little risk in the price level, with many stocks quoted between $5 and $10 a share and bonds, on which interest was being paid, selling from $50 to $200 for each $1,000 unit. Rail, Bank Bills Wait. Two measures before Congress in which Wall Street is deeply interested, namely, those affecting changes in rail- road administration and in the banking system, have made little progress re- cently. Like the bill to regulate the issue of new securities, they were drawn hurriedly and have been found faulty and unfair in some of their main pro- visions. It has been obvious from the start that if consolidation or co-ordi- nation of railroads was to be effected it would involve the release from em- ployment of a large body of railroad operatives. ‘This contradicts the pro- gram of increasing employment as the first step toward bringing about a re- covery in business. The resistance to the Glass banking bill is growing be- cause of the inclusion in it of an insur- ance guarantee of bank deposits. The unfortunate feature in bank sus- pensions is the lapse of time between closing and the payment of first divi- dends to the public. This is a matter that might well concern those who are trying to inject new ideas into the | banking laws. There are scores of in- stances where bank managements are ready to reopen and have submitted plans to the proper authorities, have had them accepted, then rejected and again accepted and rejected, Mean- while communities are without banking facilities. The extent to which this limits the natural flow of trade is in- calculable, but as over 4,000 banks are still closed and many others are oper- ating under restrictions, the barrier that this sets up against business is con- siderable. Foreign Exchange. There has been less violence to the fluctuations in foreign exchange this week, which has suggested that a fund for stabilizing the dollar has been created and is being operated. This may develop later, at present the dollar is being allowed to seek its own level. The foreign trade figures for April were significant in that American ex- ports were 3 per cent less than in March, in spite of this country going off gold, and 20 per cent below those of April, 1932. (Copyright, 19 PUBLIC PROJECT COST PUT AT $3,300,000,000 3.) i Contractors’ President Says Immedi- ate Expenditure of $2,000,000,000 Is Necessary. By the Associated Press. Accumulation of planned municipal, county and State public works construc- tion which has been postponed during the last four years, together with Fed- eral public works, would absorb easily the $3,300,000,000 contemplated Federal public works appropriation, in the opin- ion of A. C. Tozzer, president of the Associated General Contractors of America. Backing his statement with the in- complete but detailed compilation of over 3400 planned projects from all parts of the country, which have been submitted to the administration by the National Committee for Trade Recovery, Tozzer said the list constitutes more than a $2,000,000,000 volume of sound NEW YORK, May 20 (#).—There are In| indications that the new Fall catalogues | and should and necessary public works which can be built in the immediate the table that follows total stocks of | for mail order houses may show price | future. This latter figure does not in- gold are given for comparable weeks, as| gavances, announced by the board: ‘Week ended May 17...$4,313,000.000 Previous week. ... 4,313,000.000 Same week last yeoI. 4,352,000,000 If increases are made they will reflect the rises in the wholesale markets during the past month. At the same time they would rej it the first increase since the Fall of 1929, s clude Federal projects, , grade-crossing eliminations and slum cl learance, IADVANCE IN STOCK- | GAINS IN BUSINESS PRICES PUSHED T0 | EXTENDED FURTHER T AVERAGE POINTS DUR! NG PAST WEEK National Surveys Show Few Sections Unaffected by Upturn. EMPLOYMENT INCREASES ARE WIDELY DISTRIBUTED Retailers in Many Sections Report Pickup in Sales as Purchas- ing Power Rises. BY JOHN A. CRONE. Speclal Dispatch to The Star. NEW YORK, May 20—The business world this week paid more attention to the solid gains registered by various trades than to prospective inflation. Advances caused by strong statistical positions were studied along with the various familiar indices, such as steel production, car loadings, electrical con- sumption and commercial failures, The industries that know how to deal with price situations did not plunge into the raw material markets. They let the uninformed outsider do the speculative bidding and reserved their buying power until some basic mate- rials recede or until their price levels show greater stability. They hope in this way to maintain the rising price tendencies. Improvement Is General. National surveys of business the last few days indicate that there are few sections of the country which do not record betterment in at least a “few trades. Employment in the steel, auto- mobile, rubber and brewing industries has increased as much as 100 per cent in some centers in the last two months, while the higher prices of agricultural products have given the farmers about $1,000,000,000 more to spend, exclusive of the funds provided in the farm re- lief bill Broader purchasing power explains why retailers in many parts of -the country the last three weeks have been reporting small profits after more than two years of deficit operations. “Doubtless, the rigid economies put into effect since 1930,” observes the weekly business review of Dun & Brad- street, Inc., “together with the low levels at which inventories of unsold goods have been held, will help both large and small concerns to increase their profits steadily, even though sales may continue under the total recorded in more prosperous times. “The return of better weather en- abled retail stores to increase sales totals, which have been mounting so rapidly since the early part of April. Unit sales for the week ran ahead of the comparative record of last year, with the spread between this and last year’s dollar totals narrowed to the smallest degree in the last three years. The higher prices which have appeared in some departments account for the better showing, but as mark-ups thus far have not been general the con- vergence of the two totals may not be- come pronounced for another 30 days. “The increase in the dollar turnover is attributed to the changes in buy- ing attitude, for consumers are cover- ing in excess of their urgent needs, as re-employment and upward revisions in wage scales are providing them with new spending power.” Locally some of the department stores and specialty shops reported sales up 10 per cent this week over the same period a year ago. Furthermore. there is greater emphasis on quality and j price appeals less than heretofore. The jewelry trade was pleasantly surprised at the increasing inquiries for large- sized diamonds, gold jewelry and ster- 1ing silverware. Naturally cotton was emphasized by all the stores here. One of them, and not by any means the biggest merchandiser in this city, ‘bought $3,000,000 worth of goods made from cotton to put on a big drive for National Cotton week—and it was sur- prised at its large volume of sales. Other Lines Benefitted. ‘With Spring cleaning in full swing the paint materials, hardware, Summer house furnishings, garden tools and similar seasonal items are moving at a quickened pace. Fewer women's coats were sold, but this shrinkage was more than offset by the higher pur- chases of shoes, hosiery, dresses and accessories, such as gloves, purses and novelty jewelry. “Wholesale orders,” according to Dun & Bradstreet, “reached new high levels, as_bookings for dry goods, hardware, paints, groceries, knitwear, hosiery and shoes are being extended well into the Fall season in order to take advantage of current prices. Drugs and perfumes have been included in the long list of items which have been doing better since the first of the current month after making a rather poor showing during April. Prices of finished goods in many divisions are beginning to catch up with the advance of raw materials in anticipation of the higher quotations which will become effective when the new system of industrial control will become operative.” (Copyright. 1933.) EMPLOYMENT GAINS IN WESTERN STATES Special Dispatch to The Star. SAN FRANCISCO, May 20.—FEm- ployment reports of the Western States show that April is the first month in the last two years to show an increase over the corresponding month of the preceding year, according to the Bank of America. Further improvement is confirmed by the bank's index of Far Western business for April, which rose to 57.9, a 4-point increase over March. As an example of current employ- ment _conditions, California _reports that the number of wage earners in April, 1933, in addition to showing an increase over April of 1932, increased 153 per cent over March, while April pay rolls exceeded the total for the preceding month by 9.4 per cent. The 153 per cent advance this year com- pares with 7 per cent in 1932 and 2.7 per cent in 1931 Receiver Appointed. ‘WINCHESTER, Va., May 20 (Special). —An order entered today in the Circuit Court of Frederick County appointed Charles F. Nelson, Strasburg, Va. re- ceiver for the Mineral Ridge Manganese Corporation, whose properties are situ- ated in this county. The receiver posted bond of $100,000. The order | stated that the State Corporation Com- mission conceled the charter this year after State taxes assessed against it re- mained unpaid. The company was in- corporated in 1918. The stated also that Mr. Nelson had bought all the properties of the corporation and also Tozzer estimated that work could be | owns about 90 per cent of the capital initiated on a majority of them within ! the next three to nine months, stock of the com pany, which has no L} PARADISE LOST COAL TRADE AIDED New Marketing Plan Proves Stabilizing Force, Says Director. BY CHAS. P. SHAEFFER, Appalachian Coals, Inc., the regional sales agency sponsored by the National by John C. Cosgrove, a member of its directorate, as proving a stabilizing force in the Southern high volatile pro- ducing fields. “Financial circles in the East,”” said Mr. Cosgrove, who is a director of the Federal Reserve Bank of Philadelphia, “are of the opinion that the operation of the plan will be general throughout the Nation, and that it points the way to the recovery of a great basic in- dustry.” Through a substantial elimination of unfair trade practices, one of which is the sacrifice of unconsigned coal, an improved return has already been ef- fected, Mr. Cosgrove said. He anticipated that a larger volume of coal than usual will move to the lakes this year from the Appalachian area because of the indorsement of the plan as a business stabilizer by the dock interests. “In fact, purchasers gener- ally, manufacturing plants and public utilities, welcome the operation of the agency idea as a wholesome influence on the business structure,” he said. He declared that leading retail forces throughout the Nation are asserting it will prove a most effective factor, through its advertising program, in re- %&(l’]l‘lng business lost to competitive uels. Appalachian Coals, Inc., began actual operations, with headquarters at Cin- cinnati, on April 17—just a month and four days after approval by the Su- preme Court. It covers approximately 75 per cent of the tonnage produced in the high volatile fields of Eastern Ken- tucky and Tennessee, Southern West Virginia and Virginia, and looks to the | coal during its first year. | this month to handle 75 per cent of the output from the smokeless coal fields of West Virginia. T. B. Davis of New York, chairman of a committee of smokeless operators, has called a meet- ing of all operators in the smokeless flelds, to_be held at White Sulphur Springs, W. Va, on May 22 and 23, when contracts for the new agency will be signed. DOLLAR PRICE WEAKENS ON FOREIGN EXCHANGE By the Associated Pr NEW YORK, May 20.—The dollar relaxed its upward push in foreign ex- change markets today and various Eu- ropean currencies recovered portions of their previous lcsses. Although trading was reported rela- tively quiet, the British pound sterling managed to rally 1 cent to a cable rate of $3.87%; the French franc gained 0.02 of a cent at 4.51 cents, and the Dutch guilder advanced 0.17 of a cent to 46.07 cents. Swiss francs and Bel- glans Belgas were moderately higher, as were German marks, the Scandinavians and Italian lire. Canadian dollars were unchanged and Spanish pesetas and Mexican pesos were slightly easier. Shanghai dollars were firm. WHOLESALE PRICE GAIN IS CARRIED FURTHER By the Associated Press. Wholesale commodity prices showed a further increase during the week ended May 13, as the change was meas- ured from a list selected by the Com- merce Department. In the table that follows, the index of all selling prices is given for periods, on_representing 1926 level as 100: Week ended May 13, 50.5 Previous week, 50.2. Same last year, 614 ‘BY SELLING AGENCY Coal Association and approved by the | Supreme Court, was pictured yesterday | la: FURNT Carloadings Gain 13,835 Over Mark Of Previous Year By the Associated Press. Loadings of revenue freight reported by the railroads of the country to the American Railway Association for the week ended May 13, showed yesterday an increase over the previous year for the first time in several years. The total of 531,005 cars was an in- crease of 13,835 over the same week in 1932, although it still was 215,962 undef the same week in 1931. It was 7,276 cars above the week ended May 6 this year. All commodities, with the exception of less than carlot freight, showed in- creases over the corresponding week URE SALES REPORTED BETTER Head of Market Warns Against Overproduction at This Time. By the Associated Press. CHICAGO, May 20.—Leaders in the furniture business list higher prices of raw materials, increasing purchases by retailers and expanding operations by manufacturers as the first major evi- dences of a pick-up. “Although numerous problems re- main to be ironed out, the industry is definitely in better shape than it was three months ago,” says Lawrence H. Whiting, president of the American Furniture Mart. marketing of some 50,000,000 tons q!!productlon capacity. A similar agency is to be organized | Latest reports on orders received by manufacturers show the industry oper- ating at 37 per cent above the average level for this time of year, or at 53 per cent of the estimated average weekly Price lists generally have been with- drawn, with manufacturers taking orders at present prices only for immediate delivery. Buyers placing business for future delivery must agree, in most cases, to pay whatever the prevailing price may be at that time, says A. P. Haake, managing editor of the National Asso- ciation of Furniture Manufacturers. He has told producers that “demand is beginning to increase and dealers are conscious of the need for higher prices,” but has warned that “a policy of overproduction now would simply bring a relapse and possibly a worse situation later.” Cherrydale Bank Chartered. RICHMOND, Va., May 20 (Special). —A charter has been issued to the Old Dominion Bank of Cherrydale, Va. This bank is being organized to take over the People’s Bank of Cherrydale, which has been operating under restrictions since March 3, M. E. Bristow, State banking commissioner, is advised. Officers of the newly in- corporated bank were listed as follows: George F. Cook, president; George S. Douglas, vice president; Clarence E. Milholland, secretary. Other incorpora- tors are Herbert L. Charles E. James and Willlam W. Livinston. Maximum capital is limited to $50,000 and minimum to $5,000. Air Travel Increases. ge) the system'’s lines during the first 15 days of May increased 41 per cent over the same period in April. May passengers num- bered 3,980 compared with 2,330 in the April period. Dividend Meetings. NEW YORK, May 20 (P)—General Electric Co., Na Lead, Texas Cor- dremn‘m are scheduled to meet' for divi- 4end action uin& Gde ko TESTS IN RAILWAY FINANGE PROVIDED Carriers Must Meet Reguire- ments Before Getting Gov- ernment Loans. By the Associated Press. NEW YORK, May 20.—Banking houses associated with railway financ- ing are burning midnight oil analyzing the posible effect of the administration's proposed transportation bill on rail stockholders and bondholders. Attention is concentrated largely on | the section which dictates how financial | aid is to be meted out to needy carriers. | This states that the commission can- | not approve a loan “unless it shall find that the financial structure of the car- rier is such that there is reasonable prospect that such carrier can without reorganization survive the existing eco- nomic_depression and provide for its capital needs thereafter.” Four Tests Provided. What yardstick can measure a rail- road’s ability to weather the depression? Seeking an answer to this question, transportation quarters are interested in data compiled by the Chicago, Mil- waukee, St. Paul & Pacific Railroad in its recent application for a loan. under authority of the Reconstruction Finance Corporation act. As filed with the Interstate Commerce Commission, this constitutes four tests which have been applied to the 43 rail- roads that had gross revenues of $12,- 000,000 or more in 1932. The first yardstick computes the per- centage of last year’s gross required to pay all fixed interest charges. The sec- ond shows the dollars of fixed interest bearing debt per 100 traffic units of 1931, which means ton miles plus pas- senger miles multiplied by three. The third outlines the per cent of value— computed by the commission and brought down to December 31, 1931—re- quired to pay all fixed charges, and the fourth test is the percentage of the 1932 gross left for maintenance after deducting all other expenses. The Norfolk & Western ranks first in all of these tests, the exhibit shows. In applying only the first test—consid- ered one of the most vital by banking experts—second place is taken by the Long Island, third by the Santa Fe, fourth by the Chesapeake & Ohio and fifth by the Burlington. Other Roads. The next 15 roads, listed according to rank, are: Chicago Great Western, Union Pacific, Alton, Pennsylvania, Missouri-Kansas-Texas, Louisville & Nashville, Jersey Central, Boston & Maine, Pere Marquette, Reading, New York Central, Lehigh Valley, Milwau- kee, Lackawanna and Atlantic Coast Line. The Delaware & Hudson stands No. 22, the Ilinois Central 24, the Erie 27, New Haven 28, Southern Pacific 30, Baltimore & Ohio 35 and Missouri Pa- | cific 38. | “Among the first 20 roads, the per- | centage of 1932 gross required to pay {all fixed interest charges ranged from 6.8 per cent for the Norfolk & Western to 18.1 per cent for the Atlantic Coast Line. The Minneapolis, St. Paul & 8. 8. Marie, No. 43 on the list, required 348 per cent of its gross for fixed charges. — TRADE ACTIVITY INDEX SHOWS FURTHER GAIN By the Associated Press. NEW YORK, May 20.—The Annalist ?!nmlnlry index of business activity for April stands at 56.2, against 52.7 for March and 56.5 for April, 1932. All components of the index for which April figures are available, except boot and shoe production, showed increases over March. The most significant gains were in freight loadings and steel ingot production. SILVER QUOTATIONS. NEW YORK, May 20 (P).—Bar sil- yer sieady; % higher at 33%. GERMAN ECONOMIC PROSPECT DIMIMED BY TRADE DEFICITS |Loss of Exports and Petty Business Raids Reported From Reich. RECENT INDUSTRIAL GAIN IN FRANCE IS CONTINUED Gold Clause Position of the U. 8. Arouses Resentment Among British Investors. Special Dispatch to The Star. NEW YORK, May 20.—Cables and wireless dispatches to the Business Week give the following survey of business abroad for the week ended today. Berlin—If Chancellor Hitler's first convocation of the Reichstag at Pots- dam in March was more spectacular, it Wwas no more momentous than the sec- ond meeting in Berlin this week. And to the outside world the second was even more significant. For the first time since he became chancellor Hitler declared stoutly Germany’s attituds on disarmament and, to some extent, for- eign policy. Following the warning at Geneva that Germany would declare its stand on arms, markets fluctuated and sagged. There were other influencing factors. Germany's foreign trade surplus, dwindling during the first quarter of the year, became a deficit in Afirfl. Even before the results were blicly announced Dr. Schacht declared that a transfer moratorium on Germany's long-term private debts (the part of the foreign debt not already covered by the “standstill” agreement) had become & necessity. It had been expected, but it caused some reaction when creditors were summoned to Berlin for a confer- ence on May 26. Raids on Business. Aside from the uncertainty resulting from the boiling of foreign political ten- sions, German business has been seri- ously hampered in the last few weeks by continuing unauthorized interference. Though the Nazi government does not uphold these many petty raids, they have continued until they have become a distinct menace. Securities are affected by the prospect that there will be further compulsory reductions in interest rates, possibly a compulsory loan to finance a public works program, and lmehzmnm lest there be some official limitation of divi- dends, especially among the utilities. Paris.—The French were completely deceived by President Roosevelt’s dis- armament s L Althoufil his intentions are lauded, and hi Tm moderation approved, his logic is frank- ly deplored since it is pointed out that peace can be assured by only two meth- ods: (1) a reduction of the aggressor to absolute impotency, or (2) establish- ment of an inviolable pact between powerful nations promising mutual sup- port in case any member is attacked. The first method has many adherents, Cises 1t as”Sightly archate, prefevring cizes as slightly archaic, prefe openly the second. S Business in France, despite all the tenseness, is still pointing upward. Un- employment is declining. Foreign trade, however, is still loggy. The Bourse bas regained a certain calmness following the recent spurt, but it is remarkably steady in the face of developments. London.—Britain’s tenseness over Germany and the serious situation which has been created at the Geneva Disarmament Conference has disturbed British markets and brought down se- curity prices, but the general business undertone is still good. New trade agreements have been con- cluded with Norway, Sweden, Denmark, Germany and the Argentine, and it is expected that negotiations with Fin- land and Iceland will end in treaties in the near future. There is general sat- istaction over the results, though some industries complain that the benefits to Britain are small. Beyond these nego- tiations, further plans for two-country pacts will be postponed until after the tariff truce. Gold Clause Position. ‘The annoyance felt and expresesd Britain when the United supte.s lbt:! doned the gold standard was mild com- ggr:d wnhfl:he Il‘lge which has been own over the gold clause tion. The strength of this lmflmm can be 5:‘,’,5?" c{ymf:‘ éheh ‘fiord.lng of one news- nten : “The Gold Clause Fraud—City Disgust.” London banks were thrown into confusion by the an- nouncement. Some advised customers to accept paper dollars, reserving the right to sue for the difference. Others protested” the coupons on which paper dollars were offered, and asked custom- ers for further instructions. When Germany announced during the week that payment on the Young and Dawes loans would be made in to- day’s currencies, public consternation nwtfimr;:?"di ;Aflec:%d bondholders are ng to form themselves test bodies for common lnlonmw i SEEE GRS INCREASE IN WHEAT PLANTING IS NOTED Market Declines on Reports of Sub- stantial Gains in Seeding, Chiefly in Montana. By the Associated Press. CHICAGO, May 20.—Reports every acre possible which fao & p'x:‘c:f pect of maturing before frost will be seeded with 1933 Spring wheat are at- tm(?tmtg wldm'gread notice. ontrary recent advices United States Spring wheat ledln(tm practically complete, indications now are that the work is continuing with redoubled vigor and that especially in Montana the surprise campaign will not let up until about June 1. This applies also to the Canadian Northwest, the more northern sections of Alberta and Sackatchewan in particular. With an outlook for augmented Spring crop acreage, wheat this morn- ing, compared to one week back, showed 2%-3% cents drop; corn was 13-17 down; oats, 1%-11 off, and provisions ranced from 25 cents lower to a rise of 10 cents. L COTTON SPINNING GAINS. By the Associated Press. The cotton spinning ported yesterday by the Census Bureau to have operated during April at 95.7 peru::mofupld"g,mnmm ing March industry was re-