Evening Star Newspaper, July 30, 1933, Page 55

News of Markets Pages 1 to 4 Part 6—12 Pages C. & P. PHONE NET FOR JUNE MOUNTS; HALF YEAR LOWER Decrease in Revenues Offset During Month by Cuts in Operating Costs. BIG INCREASE SHOWN IN ACACIA INSURANCE Capital Chairmen Appointed for National Convention of Amer- ican Institute of Banking. BY EDWARD C. STONE. ‘Total net income before dividends of the Chesapeake & Potomac Telephone Co., in June, amounted to $145,876, in comparison with $134,601 in June, 1932, a gain of $10,275, according to the Smonthly financial statement filed with the Public Utilities Commission yester- day. Operating revenues showed a de- crease of $21,756 over June a year ago, ‘but operating expenses were reduced $58,816 during the same period. Net operating revenues totaled $170,- 020 against $147,985 a year ago. Oper- hting taxes were higher this year than dast and there was a falling off of ‘over $7,000 in non-operating income. Interest deductions in June of this year totaled $24,240, compared with 20.858 in Jume, 1932. There was a reduction during June ©f 2,011 telephones in the District of Columbia. On June 30 the number of phones in service was 174,023, which As 6,802 less than on the same date a ar ago. During June 19,354,000 tele- hone calls were made, approximately #370,000 fewer than were recorded in the same month last year. For the first six months of 1933 the ©C. & P. operating revenues amounted %o $4,574,094 against $4.821,946. Oper- ating expenses were $3,223476, com- pared with $3501,355, leaving net op- erating revenues of $1,350,618, in com- parison with $1,320,591 in the like pe- riod of 1932, a gain of $30,027. In spite of larger operating earnings, there was quite a large drop in non-operating income. After all interest and other deductions the company had net reve- nues of $831,257, against $887,371 a year ago, a decrease of $56,114. The total number of calls in the first half of 1933 was 174,023 against 180,825 lgst year, a drop of 6,802 calls. Acacia Reports Substantial Gains. Figures revealing substantial gains during the first six months of 1933 as compared with the corresponding pe- 1°0d of last year, have been reported to the directors of the Acacia Mutual Life urance Co. by President Willlam ‘ontgomery. An increase in assets of r-cre than $1,500,000, bringing the total ta $50,600,000, was announced. The ¢ mpany now has a gross income of over $1,000,000 a month, Mr. Mont- ¢ mery said. New insurance paid for during the first six months of this year amounted to $19.865,331, as compared with $16,- 298,820 for the corresponding period of 1932, an increase of 22 per cent. “Very significant figures are those €OV Acacia’s disbursements to pol- icy holders and beneficiaries,” Mr. Montgomery said. “It is not generally recognized that a great proportion of gnyment.s made are to living policy olders, For the six months period this year ‘Acacia paid to both living l)ollcy hold- ers and beneficiaries a total of $3,500.- 000. Of this amount approximatelv $2,500,000 was paid to living policy holders.” Convention Chairmen Named. T. Hunton Leith, general convention chairman of the 1934 convention of the American Institute of Banking, an- nounces the appointment of the fol- Jowing members of the committee: Chairman of the Entertainment Com- jmittee, Frank M. Perley, American Se- curity & Trust Co. Mr. Perley is a Jpast president of Washington Chapter fand has been a very active member for a number of years. Last year he was ‘chajrman of the Entertainmept Com- mittee for the banquet of Washington Chapter. Chairman of Hotels Committee, Rob- ert H. Lacey, Columbia National Bank. Mr. Lacey is president of Washington Chapter this year, his term of offiee expiring shortly before the convention next year. These are two of the most important of the committees. The convention is to be held, in Washington next June. - Annuity Rates to Be Advanced. Word has been received by Karl S. Hoffman, genetl agent here of the Na- tional Life Inshrance Co., Montpelier, Vt., that the di‘ectors of the company have voted to iacrease annuity rates. The exact date of the change has not been announced, But it may be soon. This increase in rates will be in line with the action of most of the leading companies. The large New York com- panies—the Prudential and others— have already introduced the increase, znd an article in the National Under- ‘writer states that 20 companies are con- temflmg such action. principal reasons for the increase are the decline in interest rates and the improved longevity of annuitants. A study of the experience among an- nuitants for the period 1927-1932 made by five large companies revealed a mor- tality surprisingly lower than that of the American annuitants table. This ‘was particulerly true of the experience with women. At all ages above 60 in particular the mortality was highly and increasingly unfavorable to the com- panies. The head office of the company re- ports marked increases recently in new business, which has been fully shared by the Washington office. Gleaned in Financial District. G. Bowie Chipman, manager of the ‘Washington office of Laidlaw & Co., New York Stock Exchange firm, is run- ning up the coast aboard his yacht, bound for his Summer home at Cas- tine, Me. He will remain there during August. L. W. Todd of the same bro- kerage office has been taking his vaca- tion in Pennsylvania. Harry M. Wheeler, for several years connected with the staff of W. B. Hibbs & Co., is. on his annual vaca- tion, much of which he is spending among the White Mountains of New Hampshire. Commercial Credit Co. of Baltimore has called for redemption and pay- ment on November 1, 1933, all of its outstanding 6 per cent collateral trust sinking fund notes, Series “A,” due November 1. 1934. redeemsed at the call price of 101 and accrued interest. The notes will bz | 0P’ Recovery of Half Gross Revenues in Three-Year Period Expected to y. e n FINANCIAL AND CLASSIFIED - Che Sunday Starc WASHINGTON, D. C.,|\ SUNDAY MORNING, JULY 30, 1983. 'RAILROADS GAIN RAPIDLY WITH COSTS CUT TO BONE Lost Restore Nets Completely. By the Associated Press. NEW YORK, July 29.—The railroads are advancing rapidly to a relatively sounder position. Traffic began to improve in the mid- dle of May and current loadings are running some 28 per cent ahead of a year ago. Net operating income has been spurting phenomenally, as com- pared with the emaciated statistics of 1932, and expenses are under rigid control. The recent appointment of a Federal | the co-ordinator, in accord with the emer- gency railway transportation act, is expected to result in further impor- tant economles and greater efficiency. The labor question is settled at least for the next year and adequate capital seems assured from the Reconstruction Finance Corporation for any carrier which is considered deserving. It is the demonstrated ability of the railroads to cut expenses drastically that gives the financial community its greatest hope for the future of rail- way ¥ernings. Specialists cite a com- parison of 1932 results with 1920 when gross revenues were practically as large as _in the glamorous days of 1929. ‘While the $3,161,000,000 total reve- nues of the railways last year were only about one-half of the 1920 figure, the carriers’ net railway operating in- come in 1932 was over 20 times the net of 1920. Several railroad presidents have said that if they could recover one-half of gross revenue which they lost in the last three years their net would ap- proximate the level of 1920. Banking circles familiar with the transporta- tion situation do not regard this as a fantastic exaggeration. ‘This means, it'is explained, that to- tal revenues would amount to $4,720.- 000,000, as against the $6,279,000,000 in 1929. With the new economies which have been put into operation, it would not be surprising to these rail experts if net operating income totaled well over the billion dollar mark. WILD SPEGULATON CURBED A5 THREAT FORNRA PROGRAM iSharp Readjustmentin Prices Helps Technical Basis and Warns Buyers. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, July 20.—The success of the industrial recovery program dé pends almost as much on controlling speculation in commodities and in se- curities and keeping prices of essen- |tials in balance with wages as on creating a sympathetic atmosphere throughout the business world toward the new economic philosophy. Speculation threatened to upset the administration plan. It has been curbed by measures that appear arbi- trary to those who insist on having & free hand in all of their operations and who persistently abuse their privi- leges. Much of the extravagant ma- nipulation of stocks, grain and cotton could have been avoided by the ex- changes had their officlals been more interested in promoting & moderate price advance than in making commis- sions for their members. There is much to be said in favor of Government regulation after the near catastrophe of last week and the subsequent disclosure of greatly over- extended accounts in Chicago and viclous practices by “riggers” of securi- ties in New York and elsewhere. Public More Cautious. Fortunately the foundation on which the markets rested was a sound one. The readjustment in prices has gained | for them s stronger technical position. Their recent experience has tempered {the mood of the public and developed in it a desirable spirit of caution and inclined it to look at conditions from a broader viewpoint. }. There is a social aspect of the mat- ter that is too frequently overlooked and was completely ignored prior to the latest collapse in"prices. President Roosevelt, in his address to the Nation Monday night, in which he was essen- tially socially minded, referred to H nation “half boom and half broke, and further said “it doesn’t help much if the fortunate half is very prosper- ous—the best way is for every one to be reasonably prosperous.” There still are between 11,000,000 and 12,000,000 unemployed, though Gen. Johnson hopes that 50 per cent of these may be at work by Labor day. At the same time a comparative few have been realizing inordinate profits in commodities. Because of their op- erations, the general price level of es- sentials was affected to the disadvan- tage of the consumer. He and not the producer will determine the degree of recovery. If it were true a week ago that busi- ness men are responding generously to the efforts of the administration in establishing management codes, their co-operation has been more unanimous and positive since this week's appeal by the President. In spite of prejudices that are polfiical in their origin and others that cmpe from an unwilling- ness to accept i new order of things and be manage' instead of managing. the majority arc impelled to go along with the industrial program as the one hope for salvation. The best opinion is that it will suc- ceed. The doubt expressed is as to the pericd of success. The maximum expected is frcm 18 months to 2 years. Statements for the June quarter show that the Nation's corporations are moving out of the red and into the black. That of General Motors was sensational in its results. Earning 90 cents a share in the three Spring months, the company in the half year more than covered the present divi- dend requirements on its common stock for a full year. In the month of June, the United States Steel Corporaticn had net revenues of $4,165.870, which compared with a net deficit in April of $763380. As July steel operations averaged 53 per cent of capacity, it is not improbable that the .September quarter will produce some revenue for the commen stock. Railrcad net receipts for June not only exceeded those of last year, but ran ahead of the month in 1931. It is anticipated by executives of many lines that the deficits of the first half iof 1933 will be erased by or | November and that, instead of earning only half their fixed charges, as in 1932, they will cover these charges to December 31 and build even after a maintenance 4 Bank Progress Cheering. Increased demand for electric power will put back on their former divi- dend basis in the Autumn a number of preferred stocks cf public utility rating companies that were com- pelled to make reductions last Winter. It' is encoura also to note the Virginia Electric & Power Co. has the declared the regular quarterly divi- dend of $1.50 on the $6 preferred stock, payable September 20 to stock of record August 31. All the Washington brokerage houses will n at 9 o'clock tomorrow morn- 4-c when the full-time schedule of the Wew York Exchange is resumed, ‘The sum of deposits now withheld is $2,- BRITAIN WILL RELY ON EMPIRE'S HELP INRACE FOR TRADE Baldwin Statement Reveals Nationalistic Aim Like Washington’s. - Special Dispatch to The Star. NEW YORK, July 29.—Cables and wireless dispatches to Business Week give the following survey of business INFLATIONARY AIMS APT TO CLASH WITH FEDERAL FINANCING Treasury Must Seek Sum Estimated as High “as Ten Billions. FLOTATION IS PROBLEM AS DOLLAR DECLINES Only Recourse, if Market Falters, Is Expected to Be Powers Under Thomas Amendment. BY GEORGE T. HUGHES. Special Dispatch to The Star. NEW YORK, July 29.—The Roose- velt administration has two problems on its hands which seem to require con- tradictory treatment. One is to hold up the general price level, which can only be done by keeping to the inflationary course, and the other is to carry out a refinancing program of magnitude un- precedented in peace time. The total of bonds that the Treasury must float this fiscal year has been es- timated as high as 10 billions of dol- lars, including, of course, refunding operations. The question is whether the market could take any large pro- | portion of that amount with the dollar i steadily declining in gold value. If it should falter, the only recourse would be to invoke the open market powers of the Federal Reserve { Thomas amendment. Medium Term Likely. Some decision must be reached in connection with the Government offer- ing scheduled for August 15. There has under the been talk of attempting to sell a long term bond issue, but the chances are a compromise will be reached with one of medium term, say 10 years. Yields on outstanding long term Treasury issues range from 3.36 to 3.06 per cent. The market for these is none too strong, {either. Short term obligations are i wanted. Treasury notes yield anywhere abroad for the week ending today: {from a minus quantity to 2.7 per cent, London —1f there has been any doubt | the Jatter for the 1938 maturity. Treas: about Britain's attitude on national | ury bills on a discount basis are quoted policy, it was dispelled when Stanley | from 0.40 per cent bid to 0.15 per cent Baldwin tersely summed up government | 3%ked, The banks are the buyers of all policy: “We must consider Britain| High-grade investment bonds con- first; then comes the empire; finally, | tinue to sell on low yield bases. To il- foreigners.” lustrate, Dugquesne ;.\gmm 415! re S &l 4 ‘Whatever may eventually come out q“‘? a,:‘z r;‘t:;n ;’,‘;‘,k ouf"filfim of the World Economic Conference, it |Light, Heat & Power purchase money is certain that Britatn and the United |10, €1° 125, Mora Ol ot New Jersey mi . States are golng to concentrate for a| ;. yielg 41, per cent to_the nearest time at least in spreading trade in|call date. Philadelphia Electric first certain fixed international areas. Brit- ’?h yield cm'.l‘yt ‘:m m&z u%wrl:'“ ?rr:renz oy ese quO! ain’s primary domain is the empire,| ;o0 jnvestment demand, but dealings followed by a few choice old customers, | gre in too small volume to make the such as Denmark and the Argentine America’s trade influence will be ex- erted in Latin-America, probably Rus- sia and the Orient. It is in the Orient that the two are most likely to clash. Seems Closer to France. Just now Britain seems closer to France and the gold bloc than to the United Sta and the inflationist en- thusiasts. t is due to the fact that Britain is preparing for the conversion of the $136,000,000 of dollar bonds re- maining from one of the early war loans from Washington. Rumors all week that Montagu Norman is likely to be out of the Bank of England, ard that the pound is tied to the franc, dicate the difference of opinion amorg leaders s to the road British finance shall follow. The bank is committed to an anti-dollar policy. the exporting community, and very importantly the dominions are pressing for inflation. British business continues to show striking signs of strength. Through all the disappointment of the closing days of the conference, and the recent flurry in Wall Street, there has been no un- favorable reaction in Britain. The stock markets have remained calm, industry active, commodities improting. Recent company reports and fiscal year-end accounts prove that forecasts of im- provement have been justified so long as they were modest. Postal revenue, anotker sensitive barometer, has turned upward after a decline for nearly two years. - And Britain last year Increased the number of telephone users until the country ranks ahead of Germany Preparations are being made for the instaliation of another 700,000 instru- ments. Reich Feels Isolation. Berlin—Germans are aware of ther isolation this week in more ways than one. Most striking was the decline in the number of men working by 29,000 dur- ing the first two weeks of July. In the face of the mass of Nazl propaganda ed to report every scattered item demonstrating the success of Hitler's so-called “employment battle,” this is as serious as it is disappointing. With the decline of the dollar, American or- ders for inexpensive German goods are being canceled, according to reports. Coal output and car loadings both are down slightly over the totals for pre- ceding months, but this may be due only to the Summer lull overtaking the recovery efforts. Another indication of Germany's iso- lation is the fact that the commodity and stock markets scarcely reacted to the collapse in Wall Street last week. Hitler's drive to put an end to party excesses and to restore confidence among employers is continuing vigor- ously. The government evidently is aware that it cannot withstand the demonstration which follows fear at home -as well as the boycott of foreign buyers. French Bare Views of U. S. Paris.—PFrance has its own interpre- tation of President Roosevelt’s appeal to the Nation over the radio early in the week. To the Frenchman, the ap- peal was a bold effort to institute a policy for “splendid isolation” which would at once be a rebuff to Wall Street and to Europe, while at the same time compensating the Western States for their Jong domination by the East. It looks to the Prenchman as though the &:lted States is entering the ‘era of farmer.’ Indices of industrial activity were unu\nllmy ;mmhrm this week. even e Street had Bourse. Unemployment is declining. MORE GOLD WITHDRAWN FROM RESERVE STOCKS By the Associated Press. 300,000,000, about evenly divided be- | ported a institutions. g sl S i comm are ished the inability of their banks to function. - : (Copyright, 1033)% . __ test conclusive. It has been the rule of late for the stock market to_ignore fluctuations in the exchanges. It has been weak when the dollar was declining and strong when it was advancing, apparently un- Classified Ads Pages S to NOT EVEN STOPPING FOR STATIONS L A i LUMBER SURPLUS AGAIN IS FEARED Association Manager Blames Speculative Buying for New Threat. influenced by the degree of inflation | By the Associated Press. registered in terms of sterling or the European gold currencies. Stocks Turn Sensitive. That rule was broken, | Priday when stocks agal sensitiveness Wilson Compton, manager of the National Lumber Manufacturers’ Asso- ciation, declares his industry is again ‘Dowever. o0 | contronted with the threat of further to the rapid and erratic overproduction. changes in the gold value of the dollar. Compton, who is also counselor of ‘That may have been because c ties were affected, notably cotton, Imay have been a return to cond | existing before rise in equities cay. Tt would be interesting to see just or it what the market response would be if |a the lumber code authority, declares the itions | threat has been brought about during the speculation for the |the last two months because of the gained such great head- | wave of speculative buying of lumber which is not going into actual con-| sumption. This will lead, he said, to renewed accumulation of stocks, developments were the only | which in the last three years the in- ?:‘m?rwmn wexl;t into the making of | dustry has battled so hard to reduce. prices, nowadays. would be in but that is not to be expected nearest ‘The the event that the adminis- tration should decide that depreciation | ago, which Overstocked inventories of lumber oach to it | were made a subject of st the Appr udy by ‘Timber tion Board a few years curtailment of the unit of currency had gone far|in production until the hunm'z the present. There was R Teport. 1o clrculation but it was uncon- ended June 30 Consoli-| ably manageable $3.86 a share on the | than 8,000,000,000 feet The stock, _selling | of 1933. is priced almost 15 times| Compton charged the decline in con- Considering the difficulties | sumption popu- | 1905 to_about 100 feet per capita an- common __stock. around 54, earnings. the pu%lic utilities face, with the lar demand for lower rates on one side he Government urging higher | substitution of other ma :‘;:estu;d s‘}’mmr hours for employes mhlhnzmg styles, customs and on the other, this is a generous appraisal of earning power. As a matter of fact, stocks present levels have discounted deal of trade recovery. A Dow. t | could these at their mextzu:‘:l 5 o good | larges gle source o .-.Yonu been less a sixth be dissipated. recommendations’ brought about a reduction in stocks from a maximum of 13,500,000,000 feet in 1930 to reason- , &t from 500 feet per capita in nually has been due in ‘:) the rt Jus- ousing standards, and in large part at the moment to the fact that building, ordinarily demand, has of its volumé compilation shows that 85 industrial | of five years and of total building only issues their peak Prlces for 1933 were guoted at about 81, times their average net earnings for the five years ended in 1929. Any such criticism of the price level, of course, leaves out of account inflation influences. United States Gold Output Dreps. There are only two stocks loaning at a premium, both of them low priced, Baldwin Locomotive and Colorado Fuel & Iron. The rest of the list loans flat, which is not significant of any borrow- | y ing demand, with call money at 1 per cent. The short interest in the present market is believed to be negligible. Gold production in the United States is declining. Output in June was 142.- 000 ounces compared with 185,000 ounces in May and 188,000 in June, 1932. American mines, with no chance of obtaining the world price for their product, have little incentive to step up operations. (Copyright, 1933.) COMMISSIONER DAVIS AIDS BONDHOLDERS | District Insurance Official Has In- formation Regarding Security Issue. Holders in this vicinity of first mortgage bonds which have been guar- anteed by the National Surety Co. are being asked by a committee of in- surance issioners to communi- cate at once with the committee in order that their interests may be pro- tected. The National Surety Co., which guar- j anteed the bonds, is being reorganised jand a committee of State insurance commissioners is acting- as a quasi- | from the previous ublic agency without compensation or »expense 83 the bondholders. committee. Several other eagtuu are also in- terested in these bonds, listed on the Stock Exchange at|one seventh. | CHAIN STORES REPORT SALES NEAR 1932 LEVEL By the Associated Press. 7 NEW YORK, July 29.—Chain store sales in this Federal Reserve district last month virtually equaled those of a year ago, the most favorable year-to- ear comparison since June, 1931. De- partment store sales were 5 per cent u%fir“mtnmyw, mg; total sales of Wi e m; reports to the local Federal Reserve agent rose 23 per cent over June, 1932, the best gain on record. UNFAVORABLE DIVIDEND CHANGES HIT LOW MARK By the Associated Press. New Chairman McLACHLEN ON COMMITTEE OF D. C. BANKERS. ARCHIBALD McLACHLEN, ‘Who was recently appointed by Presi- dent George C. Vass to head the Insur- Committee of the District Bank- He is secretary and assistant treasurer of the McLachlen ition, of which his brother, Lanier P. McLachlen, is pres- | total -Ewing Photo. k= NEW BANK CHIEF KNOWN AS LEADER Magruder Is Counsel to Prince Georges Commissioners and Heads Fair Association. M. Hampton Magruder of Upper Marlboro, who has been elected pfi- dent of the First National Bank of Southern Maryland, at Upper Marl- boro, is counsel ‘{or the county com- missioners, presi- dent of the South- for Prince Georges County, and one cf @ the Democratic leaders- of Scuth- ern Maryland. Mr. Magruder succeeds C. A. M. Wells, who resign- ed as president and director of the bank because he found his duties as general counsel for the Federal Home Loan Bank at Winston-Salem, N. C., made it impos- him to attend the meetings Hampton Magruder. NEW YORK, July 20—Unfavorable | °f | dividend changes in the past week totaled only 10, the smallest number for any week since February. 1930, says Standard Statistics Co. One dividend was passed and nine were reduced. In the previous week there were 17 unfavorable revisions. Favorable changes totaled 13, one less than a week ago. Three its were int . seven were resumed, two extras were voted and one initial divi- dend was declared. BUSINESS INDICATORS lmlh luring cated & 'bum figures are adjusted seasonal variation—that is, if the chan week should coincide with the normal seasonal fill the vacancy on the board caused by Mr. Wells' resignation. TAPERING OFF REVEALED IN DEMAND FOR WOOL By the Associated Press. il HEH PERMARENT CUR FOREEEN N GRAN |Traders Expect Price Limits Will Become Part of Exchange Rules. BY JOHN P. BOUGHAN, Associated Press Market Editor, CHICAGO, July 29—Far from ex- pecting that daily maximum limits on grain price changes will soon be re- moved, the majority of traders are assuming the direct opposite. The present outlook is decidedly that daily limits on grain fluctuations will become a permanent fiixture, and incorporated as part of exchange rul Leading interests see nothing detri- mental in this idea. and cite the fact that cotton trading has long b2en con- ‘ducted on such lines. With usual trading hours to be re- sumed Monday, grain men today de- voted attention largely to persistent startling crop damage reports - from Canada and to assertions by notables that should the 1933 North American wheat crop prove to be- only 750,000,000 bushels or less the- world’s importing nations would have an ex- cellent opportunity to test out wide- spread popular theories of self-suffi- clency. Aside from chances of an overbought condition developing again in the wheat market, many operators were of the belief that prevailing prices for wheat | by no means discount all of the upward possibilities of values. Priends of higher prices contended there are still many untried methods available to Govern- ment officials to help bring about an advance. It also is pointed out that the cstablishment of minimum wages and hours tends to increase the cost of manufactured commodities, and that if there is any discrepancy between the commodity index figure and the price of farm products the law calls for a readjustment. FACTORY AUTO SALES INCREASE TO 253,322 BY the Associated Press. June factory sales of automobiles menufactured in the United States totaled 253,322 vebicles, as compared with 218,303 vehwsds in May, 183,106 in June of last year and with 250,640 in June 1931. The statement was made by the The " totel Iciac S11ied P e clu - T cars and 41,839 trucks. * o A recapitulation by the bureau re- vealed the first six months’ sales amounted to 1,007,110 units, compared with 871,448 units in the comparable period of last year, and with 1,370,678 units for the entire 12 months of last year. During the first six months of 1931, total sales were 1,572,935 units, and for the year 2,389,738 units. New Trade Groups Created Rapidly For N.R. A. Action 12 NEW FIELDS SEEN FOR 0. 5. BUSINESS UNDER GODE PLANS Quality Will Replace Price as Competitive Basis, Ex- pert Predicts. FEAR OF RESTRICTIONS SCORED AS DEFEATISM Highest Trade Ideals and Service Will Count More Than Ever, Ben Nash Declares. BY JOHN A. CRONE. Special Dispatch to The Star. NEW YORK, July 29.—Under the revolutionary national industrial re- covery act, old marketing fundamentals, far from falling into disuse and obso- lescence, now take on added impor- tance, according to Ben Nash, product and merchandising counselor. Sheer price competition - will be replaced by quality and service competition, he be- lieves. “There are a great many husiness men today,” said Mr. Nash in an ex- clusive interview here, “who believe that the national industrial recovery act tends to make it absurd and futile for any individual ccmpany to enter into aggressive marketing measures. “This_attitude is premised on the belief that the new legislation might restrict competition so severely as ac- tually to place a premium on ineffi- ciency and penalize quality. In other words, these men reason, if you legalize quality and restrict competition all along the line, it cbviously is not pcs- sible for any one company to effect a position of progressive superiority or for any company to fall too far be- hind, however inferior its methods and its products. “These men are undoubtedly sincere in this attitude, but to arrive at an attitude of such prefound defeatism on such a flimsy basis is absurd. Price-Cutting Halted. “Now, what really has happened and what is going to happen? There is, of course, still much doubt as to the exact character and functioning of business under the national industrial recovery {act. But this much seems certain: The outstanding feature of the new legislation, aside from its immediate objective of putting men back to work and creating buying power, is that it definitely projects a business structure in.which sheer price ceases to be the most important of business agencies. | In, other words, price-cutting is about - to become a pretty difficult proposition, “Why the fear, then? Business men who are prophesying the doom of seil- ing advantages by virtue of the new | legislation are really in effect admitting |8 profound weakness. Deprived of the 1 power of unbridled price-cutting, they find themselves impotent to achieve progress. |~ “I think the new legislation offers to individual companies an unprecedented opportunity for progress and profit. I think we are going to see the rise of a new basis of business operations. In the process it is inevitable that we shall see a number of business names now in the public eye lose their fore positions to other names, those of men alert to | the present prescribed conditions. | “From now on the business race is !not to the fanciest price-cutter. but to the business man of the highest moral caliber, posst d of the highest busi- | ness ideals, the grea‘est busimess iz- genuity, the greatest abundance of pro- t motion ideas. In other words, strange i as it may seem, I believe that hence- { forth it is going to require practical im- agination to stay in business and make progress. Are the men who are bewail- ing the new legislation afraid? New Fields Opened. “With prices in each industry rela- tively stabilized, with prices for com- parable goods generally equal, with price-cutting out of the picture, the competitive advantage within a given indystry in the future will lie with those companies which ceaselessly seek to make their products more attractive to the consumer and are more adroit-in sales methods. “From whch it is just, I think, to draw the conclusion that at least one of the old business doctrines—attractive ! products and sellitg methods—will have | plerity of validity in the new scheme of thihgs. I suppose it really comes down to this: You can equalize the condi- ; tions, wages and hours of labor, you can equalize prices and you can equalize general terms of competition, but you cannot equalize or stabilize a business man’s progressive ideas. Competitive advantage through ideas will be the vital factor in business. (Copyright, 1933.) INTERWOVEN WAGES RAISED 25 PER CENT | | Approximately 1,900 at Martine- burg and Three Other Plants ‘Will Share in Increase. Special Dispatch to The Stac. MARTINSBURG, W. Va, July 20.— A second pay raise of 25 per cent this time, dating back 10 days to be effective from Monday, July 17, is being put into effect for all employes, approximately 1,900, at Interwoven Mills, announces President George W. F. Mulliss. Interwoven employs nearly 1,400 peo- ]ple at the Martinsburg plants; 200 at lflazflstuwn. Md.; 110 at the Berkeley | Springs Branch, and about 200 at Chambersburg, Pa. An increase of 10 per cent was given July 1. Interwoven Mills has taken on 865 employes since April 1. To the Mar- tinsburg plants 492 have been added; to Berkeley Springs, 71; to Hagerstown, 141, and to Chaml 3 “|VIRGINIAN RAILWAY HAS SHARP PICK-UP IN JUNE Vi a Railway reports for six mon ended June 30, 1933, net in- come of $1,076,194 after taxes and