Evening Star Newspaper, December 31, 1934, Page 13

1934 Business Review % henit WITH SUNDAY MORNING EDITION o Star WASHINGTON, D. C., MONDAY, DECEMBER 31, 1934 ¥ News of M arkets PAGE B—1 YEAR BRINGS FAR-REACHING CHANGES TO NATIONAL HORIZON D. C. BANKS FINISH CRITICAL PERIOD WITH HUGE GAINS Deposits Mount $40,000,- 000—Insurance Helps to Revive Confidence. DIVIDENDS DISTRIBUTED BY CLOSED INSTITUTIONS Two New Bank Presidents Are Named—Fleming Becomes First Vice President of A. B. A. BY EDWARD C. STON] Momentous developments have been recorded in Washington'’s financial district during 1934. Tremendous gains have been chalked up in aggregate deposits of the 22 banks and trust companies. Deposits up to $5,000 in all the banks in the Capital are insured un- der the plan of the Federal Insurance Deposit Corp. At the same time uniform measured service charges have been put into ef- fect, as recommended by the Wash- ington Clearing House Association. Of equal importance to thousands of citizens have been substantial divi- dend payments to depositors in closed banks now in liquidation. The Capital’s record in retail sales gains is one of the most striking of any city in the country and has helped to place the Fifth Federal Reserve District far ahead of most of the other 11 districts. Deposits Gain $40,000,000. The controller’s last call for the conditions of all Washingtan banks, dated October 17, revealed total de- posits of $256,630,881, an increase of $30,442,307 over the call in the cor- responding month a year ago. It is expected that total deposits will wind up 1934 at about the same figure, or slightly higher, which means an ad- vance of around $40,000,000. ‘The big point is that deposits have climbed back to normal, if normal means the figure at which they stood | before the Wall Street tumble and | the beginning of the depression. The | manner in which money has been | poured into the banks during 1934 | has been one of the most encouraging marks of progress. The return of confidence has been another highlight. At the beginning | of 1934 bank deposits were insured up to $2,500. After July 1 the Fed- eral Deposit Insurance Corp. in- creased the amount to $5,000 and it | was soon announced that this move had given deposit protection to about 97 per cent of all bank depositors here and all over the country. While some bankers bitterly object to strong banks helping to insure the funds in less well mapaged banks, yet finan- ciers generally agree that the in- surance innovation has proved & great confidence builder, a highly desirable and important result. Banks Halt Service Losses. Adoption of standard measured service charges on November 1 was the climax of a move that has been growing in Washington for years. It had gaineqd headway until all the banks had some forrh of service charges, although the flat rates dif- fered quite widely. On average bal- ances of from $1 to $100 a month there is now a charge of $1, 10 checks or other items being permitted. From $101 to $200 there is no charge, pro- | vided only eight items are used. The new schedule goes on up the scale with more items allowed as the size of the amount on deposit increases. | As large sums are reached, there is | mo service charge unless a host of checks are drawn or deposited for collection. Items in excess of the schedule number are charged 5 cents each, with a minimum charge for excess activity of 25 cents. The public as a whole has accepted the new service with good grace. In cases of criti- cism most of it has been directed agajnst the 25-cent minimum fee for excess activity. There are likely | to be some slight modifications in the | present rules, bankers say. However, the service charge idea is here to stay. So are practically all | of the charges. Analysis of accounts | proved a revelation in many banks | when it was discovered how much | service was rendered at a loss. In | times of extra prosperity these losses were not so serious, although clearly unfair to the banks. Every account is now expected to pay its own way. The result has been the closing of a good many small accounts and the bolstering of others to sums which carry themselves and leave a profit for the bank. Stopping of these service losses marks a new era for Washington financial institutions and looms large in the 1934 records. End of U. S. Check Tax. The end of 1934 also sees the end of the Government's 2-cent charge | on all bank checks. The so-called | nuisance tax expires January 1. The | Federal tax has meant an increase in Government refenues of nearly $50,000,000 a year, has caused a not- able reduction in the total number of checks drawn, and placed more work on the rnoulders of bookkeepers. Its passing will not be regretted by bankers or the banking public. Early in the year the banks here reduced interest rates, making 2% per cent the maximum to be paid on savings accounts. This action was (Continued on Page B-3, Column 6.) —_— "LITTLE HOPE IS FELT FOR AMERICAN SHIPPING By the Associated Press. NEW YORK, December 31.—For- eign exchange uncertainties and the growing trend of economic nationalism becloud the horizon for the shipping companies in 1935, Basil Harris, vice president of the International Mer- cantile Marine Co., declared. “The year 1934 has been a most dif- ficult one for American steamship lines, and at present the year 1935 does not seem any brighter,” he said. Harris characterized the attitude shown in Washington on merchant e matters as “vacillating” and eartening.” x Mass Fear Gone, Radicals Losing, Hecht Believes “The people of the United States undouhtedly again have their feet on the ground,” says R. S. Hecht, presi- dent American Bankers Association, chairman Hi- bernia National Bank, New Or- lgans. “In saying this I have in mind two distinct phases of public depression psy- chology that have alternately ap- peared to hold sway from time to time. First, there are no longer any signs of that mass hysteria of fear and helplessness which characterized the various critical stages of the de- pression a number of times, as if all were lost. Second * * * There is no longer widely prevalent that almost equally frantic attitude which at some points in the recent troublous years seemed to believe that the only way out was to abandon or overturn our established traditions of economic, social and political life and embark on some wholly new and revolutionary course.” -—— FINANGIERS GITE CAPITAL UPTURN IN REAL ESTATE Buying Power Is Expected to Expand Further During Next Year. Leading Washington bankers are optimistic on the 1935 outlack. There has been vast improvement this year, which is expected to continue through 1935. Expansion in buying power, so notable in the | last 12 months, | should go still | further in the| coming year, | bankers say. The better real estate situation is also comment- ed on by bank officials as an index of great importance in every forecast of v, better times. Robert V. Flemine. o0 €1 sweep- ing upturn is forecast which will pin a silver lining onto every cloud, there is wide agreement that 1935 will sur- pass 1934 in recovery progress. That's | saying a lot, and the short interview supporting these claims is highly in- teresting. In discussing the 1935 outlook, Robert V. Fleming, president of the Riggs National Bank, first vice presi- dent of the American Bankers’ Asso- ciation, and president of the Wash- ington Board of Trade, said: “The business outlook for the year 1935 for the City of Washington in my judgment presents rather bright prospects. To begin with, bank de- posits have again assumed normal proportions from the low point reached following the banking holi- day. Consequently, ample credit is available to all worthy borrowers, and banks are most anxious to employ their loanable funds. “The fact that the Government pay cut has practically been restored en- tirely, together with the augmented (Continued on Page B-4, Column 2.) CONTINUED RECOVERY FORESEEN BY WATSON “I am looking forward with in- creased confidence to the year 1935 as one of improvement,” says Thomas J. Watson, president of International Business Machines Corp. “We have evidence that substantial gains have been registered by our busi- ness and financial institutions during the last year and that the trend is definitely upward, with larger pay rolls, increased employment and rising profits. “Our trade abroad is improving, as is shown by the fact that for 10 months of 1934 our exports have in- creased about 33 per cent over last year. One of the main factors con- tributing to recovery is the constantly increasing co-operation among politi- cal, industrial and financial leaders.” OUTDOOR ADVERTISING WILL REDUCE CAPITAL By the Assoclated Press. NEW YORK, December 31.—Stock- holders of General Outdoor Advertis- ing Co. have approved the proposed reduuction in stated capital to $14,- AMERICA ESGAPES MANY DANGERS IN CRISIS DURING "3 Inflation, Communism and Eascism Seen Averted Last 12 Months. HOME LOSS PREVENTED FOR 650,000 FAMILIES Statistics Indicate a Definite Up- ward Trend in Many Aspects of Business. BY CHARLES E. SPEARE. (Copyright. 1934.) NEW YORK, December 31.—In looking back over the events of 1934 and forward to the circumstances that may fashion the pattern of business and banking in 1935, two questions arise: “What dangers that appeared to threaten the country 12 months ago have we escaped? How much recovery has been made during the year?” The things feared by business, or, more strictly, by industry, were ex- pressions of a social change quite as much as those having to do with the volume of production. They involved differences of opinion between capital and labor, and these did develop in quite large number in the first half of 1934, and in a wide area in Septem- ber, when the textile strike occurred. But there were no fierce riots attend- ing them, as had been predicted. Communism Defeated. Communism raised its head in dif- ferent labor conflicts. Each time its head was cracked. We have, for one thing, escaped Communism, and though there have been mild flirta- tions with Fascism, neither political philosophy today has any hold on the mind of a majority of the American people. How did the administration go about warding off these European ways of dealing with an economic crisis? By successive stages of relief—first in the banking crisis of March, 1933; then in the farm mortgage situation; later in supporting the reasonable contentions af the labor unions for collective bar- gaining; in lending about $1,000,000, 000 to those banks still “under water after the moratorium; by grants of aid to the unfortunate and unemployed and by sglvaging from the banks, building and loan associations and distressed mortgagees $2,000,000,000 of urban mortgages which were about to be foreclosed. In the mortgage work alone, 650,000 families in the United States were assured their homes, which otherwise they would have lost. In describing the operations of the Home Owners’ Loan Corp., Chairman Fahey says that 4,000,000 persons would have faced agency and many of them would have been turned into the streets. Such a condition, he says, with a bank crisis, unemployment and the broad relief requirements at this time, would have created a situation “‘uncomfortable to think about.” With inflation failing to develop, the banking world has avoided the depre- ciation in corporation securities which (Continued on Page B-4, Column 4.) 'RESEARCH OPENS MANY NEW FIELDS | Chemical Industry Brings Out Steady Stream of Processes and Products. “There is activity in chemical in- dustry as long as there is activity anywhere and there is a close rela- tionship to research that during the last three years has brought forth a continuous stream of new processes and products,” Sidney D. Kirkpatrick, editor of Chemical and Metallurgical Engineering, declares. “Many of these have been and are being translated into new plants. I estimate that more than $100,000,000 has been set aside for new projects of this character. “Already the South has witnessed a great migration of the alkali in- dustry where three plants now under construction in Louisiana and Texas represent an outlay of $20,000,000. “In the Middle West more than 4,000 men are at work today on a great new industry that will utilize the waste gases of an oil refinery as the basis for the manufacture of solvents and other synthetic organic chemicals. The extent of this one investment is estimated to exceed $5,000,000. “Many smaller projects are under way such as a $400,000 soap plant in Cincinnati, an electric furnace phos- phgric acid plant in New Jersey, and another at Muscle Shoals—not to mention the many large distilleries 892,174 from $21,316,024. The num- ber of outstanding shares will be un- changed. which in these days are manned by chemical engineers.” Substantial Gain Predicted For Heavy Ind_ustries in 1935 LL signs point to a substantial revival in the heavy industries in 1935, Albert C. Lehman, president Blaw, Knox Co., de- clares. “More than $5,000,000,000 worth of industrial machinery and power plant equipment must be bought to make good deferred maintenance, according to estimates of the Durable Goods In- dustries Committee. “We need 400,000 new homes a year costing approximately $2,000,000,000 to keep upppwrloth obsolescence and in- creases in ation, and in addition we need 2,000,000 additional homes to al families now living ‘doubled “upy’ according to the same authority. “On the fam uipment buying has declined from $500,000,000 to approximately” of that, and ) the committee estimates there is nearly $1,000,000,000 of potential busi- ness in that field. “Thousands of small communities have no water and sewer systems. Allotments of Gwemn;:l:tm -::ld grants totaling over ,854,¢ - ready have been made for 514 projects, representing only 7 per cent of pos- sibilities available for installations during 1934 and 1935. “It is estimated that 4,771 water works and sewer projects to cost over $1,000,000,000 could go into construc- tion in 1935. “Resumption of the delayed buying of the public utilities for maintenance and of replacement material plus the potential market which will be cre- ated by public utility extensions offers an extremely substantial outlet for the products of the Durable Goods Industries.” ¥ penury without the support of thlsl 1934 Business CoMPARED WITH 1933 Dercentage Changes n Significant Barometers Business DoLLAR VoLume EMPLOYMENT WAGES CosT oF Living BuiLbiNG FaiLures (No) ProoucTiON INDUSTRIAL ACT IVITY B SteeL OPERATIONS ELecTrRIC OuTPUT Auto Output DISTRIBUTION CARLOADINGS ReTaiL PRICES RETAIL SALES MonNEY —e FARMER ENJOYING PREFERRED PLACE UNDER“NEW DEAL™ S BAE +302% CommoDITY PRICES ERETESRS +4.8% Crupe OiL Output E+.8% F+5.1% EEER9.8% +125% GoLb RESERVES Feo. REs. RaTIO +5.5% TiME MoNEY RATE EEE-€9% CaLL Money Rate RN -2).57% INVESTMENT ToraL New Securiies I -10.87% INSURANCE RESIDENTIAL BuiL 522+9.2% SR DING 190% (Ficures MosTLY on ELEVEN MonTH BAasiS) CANBRIDGE ASSOCIATES, BosTon RIGHT TENDENC TERMED A MASK Basic Left Principles Held Hidden in Making Re- form Palatable. BY WILLIAM T. COBB. (Cambridge Associates' Stafl.) Slowly, reluctantly, giving way now here and now there, the Roosevelt ad- ministration has made the much pleaded for, much advertised “Turn to the Right” in the past six months. And yet this very trend is, paradoxi- cally enough, an admission of perma- nent turn to the Left in the course of business affairs. For to concede that the policy of Government has played and will play a determining part in the prosperity of business, a dominating role never previously conceived in this Nation of rampant, lusty industrial growth, is to concede that Government is in and over business—and to stay. Question of Tactics. Indeed, the very efforts that have been made to make recovery and re- form efforts more palatable to business in the last half year are largely a ques- tion of tactics to make the basic prin- ciples more popular. If the Govern- ment has taken a less pro-labor course in recent labor disputes, for instance, it has been largely to make the very idea of Government intervention in some degree acceptable to the business men involved. And it is this prin- ciple which in many instances has re- mained unsmirched by compromise; yet at the same time it is this method of administration which is gradually winning over a large section of busi- ness not necessarily to Mr. Roosevelt, nor to the Democratic party, but to a half dozen or so basic ideas. Contrary to the hysterical harangues of the Tory soapboxer, these new ideas which have emerged—and not entirely from the administration or its advisers either— are not socialistic, but are held by pro- gressive industrialists to be the proper method of conducting industry during the twentieth century in the United States. Out of the welter of new thought, new action and New Deal which has constituted the American business pic- ture for 1934, these ideas are beginning to take shape in recognizable form. It is by first recognizing them for what they are, and then appraising them for what they are worth, that we may discern the rough outline of the future, the pattern of 1935. And this is pos- sible because of the tremendous domi- nance of Government. Points to Utilities. First, because at the moment most in the public eye, we may take the utility question, However much the issue may be obscured, the plan for the future is very definite and very clearly outlined. It contemplates a series of measuring rods throughout the country, the purpose of which is not to supplant private ownership of utilities with publicly-owned and oper- ated plants throughout the country, but to furnish an accurate yardstick with which to measure utility rates throughout the Nation. What should be understood is that this technique tely- with those of the Federal Government on apy but a relatively minor scale. It does contemplate keeping utility rates down by showing what electric- ownership New York, constitute s threatening (Continued on Page B-2, Column 6.) AWAIT HIGHER COFFEE. Guatemsala coffee exporters are holding off in hope of better prices. Electrical Firms Report Big Rise In 1934 Volumes! The volume of electrical manu- facturing business during this year | has been more than 30 per cent greater than 1933, declares Gerard Swope, president, General Electric Co. “Consumption of electricity through- out the United States has been ap- proximately 7 per cent greater than in 1933 and is almost up to the maxi- mum consumption in the years 1929 and 1930. This increase has been due largely to the increased use of elec- | trical appliances in the home. “The electrical manufacturing in- | felt most seriously the failure of the revival of orders for capital goods, but with the increased use of electric- ity and consumers’ goods in general, capital goods must also increase. “For the year 1935 we look for- ward to a continued improvement in business.” STOCK PRIGES FAL TOHINT FUTURE No Clues Given This Year Whether Major Bear Move Is Ended. BY GEORGE T. HUGHES. NEW YORK, December 31. (N.A. N.A)—In so far as it is a function of the stock market to forecast the future, the market of 1934 was a sig- nal failure. In no year since the de- pression has the course of prices been more indecisive and left the observer without a clue to the events which a speculative movement is supposed to foreshadow. In 1930, in 1931 and iff 1932 up to Midsummer the trend was downward and unmistakably so. With painful precision, stocks prophesied the con- tinuously increasing stagnation of business. The decline paused in July, 1932, apparently from exhaustion rather thap conviction that improve- ment was in prospect. The rapid and unprecedented re- covery in the Spring of 1933 reflected the equally rapid and equally unprece- dented rate of revival. Then, when that violent advance came to a sud- den halt and the whole structure col-4{ lapsed, the illuminating and informa- tive phase of the depression markets came to an end. The question whether the major bear market is now over was not an- swered by the events of this year. That is to be determined by what transpires in 1935. The evidence favors an optimistic conclusion, but there is enough doubt left to make it advisable to reserve judgment. The analysis was and is complicated by a series of factors with which mar- ket interpretation had never before to deal. Most important of these factors was of course, the assumption of Govern- | dustry, and industry in general, has : in volume and profits during the 12 RETAILERS AL BIG CAINS HERE Business Best in Several Years—Further Rise Is Predicted. BY JOHN J. DALY. For the first time in 5 years, Wash- ington business men noted an increase months past. With few exceptions, retail business men here, looking back over the books, found‘a satisfactory situation. The general chart shows an up-grade. One manager of a chain store said the year 1934 was the best since the memorahle year, 1929. Another business man, whose in- terests center in Washington and scatter throughout the Southland, re- ported the best business in several years, and added: “Business was ex- cellent in 1934 compared to the four previous years. There was quite a dis- tinct revival throughout the South, with Washington at the high point. I see no reason why this improvement should not continue. Newspaper ad- vertising played a large part in this business recovery. It brought about a steady improvement, growing in volume each day.” One shrewd business man made this observation: “Recovery, complete and fyll recovery—will be on us be- fore we know it, if the next year is better than the year just gone. I be- lieve the signs point to a revival of business on a grand scale. We will wake up one of these fine mornings (Continued on Page B-2, Column 8.) BROKER SEES 1935 CONTROLLED BY U.S. C. C. Morgan Predicts Chief Efforts Centered on Economie Moves. ‘The controlling influence over the 1935 business and financial outlook lies with the Government's policies here in Washington, Charles Carroll Morgan, one of the managers of the Washington office of G. M. P. Mur- phy & Co., declared today. “Basic administration moves will be along the same lines,” he added, “‘be- cause of the vindication given the New Deal in recent elections. However, due to two years’' experience, we are apt to see more weight placed on re- covery and less on reform. “If business recovery takes hold for any extended period in 1935 there will not be further major inflation. If it does not, inflation is a certainty.” he asserted. I_foorts to Hold More Time, Energy and Cash Spent on Him Than Any Other Class. LIVE STOCK SLAUGHTER FORCED ON HUGE SCALE Marketing Caused by Drought Fails to Yield Much Profit. Cotton Is Big Problem. BY EDWARD B. HUBBARD. (Cambridge Associates’ Staff.) The forgotten man has turned out to be the farmer. Perhaps more time, energy and cash has been spent under the New Deal in improving the status of the agricultural population than that of any other one class. In fact, so important is the attitude of the| Government toward the farmers that the prospects for 1935 can hardly be | considered without giving large weight | to the program of the A. A. A. Briefly, let us trace the course of de- velopments which have led to this pre- ferred treatment. Up to the turn of the century the farmer was the darling of the Nation. It was he who had pio- neered the West and developed the vast resources of the country; he that created a foreign trade which enabled the rest of the country to import the manufactured articles that were needed. Railroads were subsidized be- cause of the possibilities of greater agricultural wealth. But the advent of the railroads also brought attention | to the raw materials which lay ready to bring about an industrial expan- | sion. Thus a new influence was felt. In- stead of keeping tariffs low, so that the full benefits of the agricultural ex- ports could be enjoyed, protective levies were set up to foster infant industries. And finally industrial growth over- shadowed farming. In the period fol- lowing the war there was an unprece- dented expansion of manufacturing activity. The growth of the electric | power industry, with its attendant benefits, foretold a new prosperity. The farmer was forgotten. Industrial Wwage earners saw an ever-increasing spread between their income and the prices of necessities. That is the background. The pres- ent administration has been brought acutely to the realization that farm in- comes play an important part in the prosperity of the Nation. Two Years’ Net Gain 38 Per Cent. The lot of the farmer already has improved notably. Farm income, as | estimated by the Department of Agri- culture, increased from $4,328,000,000 in 1932 to $5,051,000,000 in 1933 to $6,- 000,000,000 in 1934—a total gain of 38 per cent from the low point. It should be pointed out that the in- | come for 1934 included relief, restric- tion rentals, and benefit payments by the Government. Furthermore, it was very unevenly distributed over the farming population because of the drought. Those who escaped from its ravages benefitted at the expense of the victims. ‘The dairy industry is the largest on | tie point of income, and also the least integrated. The A. A. A. pre- | sented a beautiful plan which would | assure the farmers of receiving fair | prices for their milk. But it didn’t work The drought cut down the supply (Continued on Page B-4, Column 1.) GAINS EXTENDED BY FOOD INDUSTRY | Chester Points to Benefits for Consumer, Farmer, Employe and Investor. Sales and operations of many com- panies in the food industry will show satisfactory gains for 1934, says C. M. Chester, president General Foods Corp. “The consumer, farmer, employe and investor benefited from this improve- ment. “The year just ended was one of intense competition. It was a period for thorough and constant study of the market, for more effective adver- tising and selling plans, for proposals of the research experts to improve old products and introduce new ones. “Labor received a larger part of the food dollar during the year. . Gen- eral Foods, for example, was able to increase its aggregate pay roll by about 15 per cent. The farmer, because of the higher prices for raw materials, got a higher wage for his labor. “Maintenance of comparatively high rates of operations during the year provided employment for thousands in other industries. For packages alone—and the food industry requires cardboard, tin, glass, cotton, paper— there is an annual investment of mil- lions of dollars. “It is estimated, for example, that in 1933 $800,000,000 was paid to the railroads for their co-operation in the tremendous task of transporting food in this country.” Down Car Costs F avorable Sign Regarded as by the recovery registered . industry during I | é ] ] 8 & g § i ¢ § g g ; 5 g i 3 i { ») 2 E - 1934 was one of the ouf 1930. the most favorable factors automobile maud‘ ion at present af is the efforts of the industry to hold down costs and simultaneously the selling price of cars to users, despite the new year with a feeling of con- fidence.” | proximately 10 per cent. BUSINESS COURSE VERY IRREGULAR INPAST 12 MONTHS Consumer Goods Continue Upgrade, but Other Activities Lag. AUTO VOLUMES EXERT POWERFUL INFLUENCE Hasty Retreat to Lower Prices Revives Sales Sharply in Last Half of 1934. BY CAMBRIDGE ASSOCIATES. Individual industries in 1934 present & mixed picture, as the smallest in- vestor could readily testify. Those who placed their faith in consumption goods (with the exception of electric power), or automobiles, did not do badly. Those who had hopes of a sub- stantial recovery in the heavy indus- tries, such as building, machinery and steel, however, had occasion to regret their choice. _ Let us first turn to the most powér- ful force yet in evidence in the re- covery of the automobile industry. Faster gains were shown by other in- dustries, but the automobile industry affects so large a sector of the general industrial picture that a comparatively small increase is of major importance. Actually, the increase in automobile production in 1934 over 1933 was ap- It would have been smaller had producers per- sisted in maintaining the price ad- vance which was inaugurated at the middle of the year. But sales fell off so sharply that the industry beat a hasty retreat to a lower price. Volume | obligingly picked up again. Automobiles. Although it was the automobile in- dustry which made the gains, the equipment companies »eaped the greatest profits. Many of these com- panies approached 1929 earnings, since their prices were not restricted by public refusal to buy, but oniy by the more tolerant attitude of the motor manufacturers. Surprisingly, the tire companies brought up in the rear, since a large part of their volume comes from replacement sales, on | which prices could not be advanced to offset the sharply increasing price of rubber. Oils. Oil companies seemed perennially on the point of improvement, but never quite made the grade. Although the Government restriction was successful enough to maintain the price of crude | practically constant throughout the year, devastating price wars in the re- tailing of gasoline swept the country during the Summer when record con- sumption levels were attained. It has proven true of the industry that unless there is a stropg arm enforcing re- striction of output, the possibility of overproduction exerts a depressing force on prices. Steel. Steel production showed a slight but encouraging advance over 1933. ‘Whereas the boom of that year came in the middle of the Suramer, 1934 |showed its lowest activity in early September. The automobile industry was the strongest contributing factor to the improvement. Railroad equip- ment and general purpose machinery makers had larger requirements. Othe> metals enjoyed an incease in demand from the same sources. Chemicals. Slow and steady progress was regis- tered by the chemijcal manufacturers. ‘This industry has become so varied in its applications that the earnings of the average chemical company can be taken as a measure of industrial pro- duction without going far astray. The future qutlook for chemicals has been outlined as extremely optimistic by scientists and economists alike, many new _ developments having been achieved during the depression years which promise to revolutionize indus- tries and habits of living. Electrical Supply. The progress of the electrical refrig- eration industry, even during the de- pression, has been one of the bright spots of the last few vears. Its bis gest year probably is yet to be seen fi this industry. Air-conditioning is be- ginning to assume a significance be- yond its years. Further reductions i1 (Continued on Page B-2, Column 1.) OUTLCOK CHEERS CANNING LEADER 0. C. Huffman of Continental Co. Cites Favorable Prospects for Large Food Pack. Pavorable prospects predicted for 1935 in the food canning industry are not only of vital interest to the cgnner and the manufacturer of tin contain- ers, but also widely concern many other industries and the agriculture of this country, declares O. C. Huff- man, president Continental Can Co. “The use of tin containers has in- creased until today the tonnage of steel used in making them is one of the important factors in the steel in- dustry, and the production of food to be preserved in cans millions of workers on farms, ranches and dairies and in the fishing industry. “Government figures indicate that of canned goods are somewhat below normal size. “Unusual drought conditions in 1934 greatly reduced the yields of canning crops per acre, and if the same acreage is planted in 1935 and grown under normal conditions, packs appreciably larger than in 1934 would result.” SWIFT DIVIDEND VOTED. CHICAGO, December 31 () —A semi-annual dividend of $1 a share was declared Saturday by the Compania Swift Internacional, payable March 1, 1935, to shareholders of record Feb- ruary 15.