Evening Star Newspaper, September 8, 1935, Page 61

News of Markets Pages 1 to 4 Part 5—12 Pages WASHINGTON BANK DEPOSITS REVEAL STEADY UPSWING Substantial Gains Since June Condition Call Are Indicated. D. C. EXCHANGE RESUMES TRADING ON SATURDAY i Tnstitute Students Here to Get Diplomas—Brokerage Offices Jammed to Doors. BY EDWARD C. STONE. Deposits in Washington’s 22 banks | are expected to reveal a substantial increase following the next condmon‘ call issued by the controller of the currency. Such a call is now looked for early in October, as one usuully comes about that time. Both checking deposits and savings deposits are said to have made marked advances since the bank call issued on the last business day of June. While definite figures will not be at hand | until the next call, bankers in the | Capital have been much impressed | recently with the amount of money | that has piled into their institutions. The old-time virtue of thrift con- | tmue.s to manifest itself as savings | its are being quietly increased and many new accounts started. It is | reported that the new depositors in-| clude people in every walk in me.; Naturally, there are a host of Govern- ment workers in the lists, but the names of a lot of people appear who are not connected with Uncle Sam’s activities. Much the same situation is being reported in other sections of the coun- try. Rober: C. Glazier, president of the National Association of Mutual Savings Banks, commented during the | week on the stability of deposits and the number of new accounts constant- ly being opened. A similar report comes from the New York State Sav- ings Bank Association. The June bank call in Washington revealed a gain of $9,742,032 in de- | posits in the first six months of this| year and more than $30,000,000 in the previous 12 months. The October ag- | gregate deposit figures will be awaited | with upsual interest. Excbuue Open on Saturday. ‘The Wsshmgton Stock Exchange resumed Fall ay sessi terday after the Summer suspensmn ! Business was practically nil. Just one sale was recorded, 10 shares of Po- | tomac Electric Power 5!2 per cent preferred stock selling at 1133, Volume of trading for the week, how- ever, was satisfactory, prices in both stocks and bonds being well main- tained. Members of the Washington Ex- change turned much of their attention ! to the New York Exchange yesterday, #pecial comment being heard on the | advance in American Telephone to a | new high for the year, 143!. New | high marks in General Motors and- other issues also drew comment. “Sit- | ting bulls,” who have been awaiting a | more active stock market, are said to| have been standing up most of the| time during the last few Wall Sueet‘ sessions. It was noted here yesterday that the directors of Safeway Stores, Inc., ! which is affiliated with the Samlary Grocery chair, have declared a quar- terly dividend of 50 cents per share on the common stock, payable October 1 to stockholders of record September 19. Regular quarterly dividends of $1.75 per share on the 7 per cent| preferred stock and $1.50 per share | on the 6 per cent preferred stock | were also declared, payable chber 1 to stockholders of record Se'pum- ber 19. Rewards for Junior Bankers. Graduates in standard courses in Washington Chapter, American In- stitute of Banking, will be awarded | at the Fall open meeting at the Wil- | lard Hotel, tomorrow evening. The program has been arranged in co- operation with the national com- mencement exercises and will be fea- tured with a radio address by Dr. Ru- fus von Kleinsmid, president of the University of California. This ad- dress will be made a part of the local program between 8:30 and 9 o'clock. Charles H. Doing, president of the District of Columbia Bankers' Asso- ciation, will present the organization’s greetings and Dean Raymond B. Dickey will make a brief talk. Prizes will be awarded winners in the W. W. Spaid golf tournament. Dancing is v.o follow the graduating program. Members of the District Bnnkcrs Association have just received printed books containing the complete pro- ceedings of the last annual convention held at White Sulphur Springs, W. Va. All the addresses are recorded in full, as are the reports of all stand- ing committees and summaries of the work of the Fiduciaries, Safe Deposit and Auditors Sections. Election of officers in the association and in the A. B. A, the member and guest list, much other very interesting matter, are included. The convention was gen- erally considered to have been one of the best yet held. The record is most | attractive. Heard in Financial District, The standing room only sign was | out again yesterday in the brokerage | offices here. Business may want a “breathing spell,” but the brokers don't. They want volume and they had it yesterday. It was a two-hour Saturday session that will Jong be re- membered. | The 'Preuury plans to run a series of three “ads” in national magazines | this month and next concerning its “baby” bonds. This will mark !he‘ first time the Treasury has advertised | | United States savings bonds through | any medium except posters. “ The Broadway Savings Bank, Balti- | more, has made available for depositors | an additional 10 per cent of the funds withheld at the time of reorganiza- tion in 1933, when 75 per cent of de- posits were made available and the other 25 per e;nt placed in a special guarantee fund. Arrangements have been made for the sale of a New York Stock Ex- nge membership at $120,000, up 315000 from previous transaction. Head New Firm MORGAN PARTNERS RESIGN TO OPEN INVESTMENT HOUSE. Henry Sturgis Morgan (upper), partner and younger son of J. P. Morgan, and Harold Stanley, an- other partner, who have resigned to become executive heads of Morgan, Stanley & Co., Inc., new investment banking firm which will open for business September 16 with $7,500,000 capital. The firm will carry on underwriting of new se- curities and wholesaling, giver up by the parent firm as required by the banking act of 1933. Mr. Stanley is president of the new concern—Underwood & Under- ‘wood photos from the A. P. EXPANSION IS SEEN OF MORGAN POWER IN"NEW COMPANY ‘Wall Street Gossips as to Future Influence of Un- derwriting Business. | Special Dispatch to The Star. NEW YORK, September 7.—With the “corner house"—as J. P. Morgan & Co., has long beea known in Wall Street—back in the underwriting | business, by proxy at least, through the newly formed firm of Morgan, Stanley & Co., tongues are busily wagging in the financial district, with surmise, conjecture aad gossip. Past Relationships Recalled. The street wonders if the new firm will fall heir to all the fiscal relation- ships long existing between the Mor- gan firm and such companies as United States Steel Corp., General Motors, New York Ceatral, Great Northern Railway, Johns-Manville, General Electric, J. 1. Case, International Har- vester, Montgomery Ward, and Atchi- son, Topeka and Sante Fee—to men- tion some of the better known. Quite often in the past the Morgan in- terests have held good-sized stock representation, if not actual control, in some of the concerns they have financed. Dealers weader if the old method of distribution will be used. It was re- called that the house of Morgan al- ways assumed that if a dealer was on the list, he was there to take what was offered, whether the market hap- pened to be “sweet” or “sour.” Of course, in the long run, taking them as they came, the vast majority of dealers were very glad to be on the Morgan list. Governments Sought Aid. Not only corporations came to the “corner house” for money. The Brit- ish, French and Italian governments at different times have floated loans under the Morgan aegis. During the World War, J. P. Morgaa & Co., acted as fiscal agents for the British gov- ernment in this country, and the first big orders for war munitions were doled out from 23 Wall Street early in 1915. It was the Morgan firm that first suggested to such companies as Ameri- | can Locomotive, American Car & Foundry 20nd Westinghouse Electric the possibilities in orders for tens of millions of shells. (Copyr! 1935.) FINANCIAL AND CLCASSIFIED he Sunday Star WASHINGTON, D. C, UNEVENTFUL WEEK STOCK ADVANCES MARKS BUSINESS AGTIVITY ABROAD London Hits Slow Pace Be- cause of Anxiety Over Ethiopian Troubles. PARIS RETAILERS SHOW SOME RECOVERY SIGNS German Coal Shipments Jump on Increased Italian Orders and Other Rush Customers. Special Dispatch to The Star. NEW YORK, September T7.—Cables and wireless dispatches to Business Week give the following survey of business abroad for the week ending today: LONDON.—"“There is no panic in London, but the British are disturbed over the Ethiopian troubles and this anxiety is helping to slow down busi- | ness. Contributing distress factors | are further labor troubles, and pre- | election uncertainties—especially the worry now that the election will be | delayed by international complica- | tions. | British to Stand Alone. “However devious the course of the international discussion of Geneva concerning Ethiopia, the English have | pretty well made up their minds that they can protect their interests in | the Mediterranean and in Africa h’ithoul the support of France. | Nothing will be done to antagonize France, but neither will the govern- ment bow to the full demands from the French in order to win their un- qualified support. Sanctions are not likely to be called into force. London will ultimately deal with Rome, and Mussolini probably will be placated with partial fulfilment of his am- bitions in Africa. All of these de- velopments demand further ticklish negotiations which are bound to be a retarding influence on business. “Plans for the financing of small business with government aid have run into trouble. Banks refuse to accept the ‘prospect of business’ as security for such financial aid as is needed, and the government is already too embarrassed by the prospect of greatly increased military expendi- tures to assume the responsibility for supplying funds.” French Business Uneventful. PARIS.—“Business in France this week was uneventful. Reopening of the wheat futures market (which has been closed since last December) is viewed optimistically. With a crop shortage, it is increasingly evident that the current crop and most of the surplus are likely to disappear before the end of the year. Prices are already firmer. Cement prices have been reduced 10 per cent in the cam- paign to reduce the cost of living, and the revaluating of property has helped to reduce tax costs. “Foreign oil interests were warned this week that quotas on refined oil will be cut another 10 per cent in October. It is in keeping with a long- time government policy of develop- ing a domestic refining industry. “Tetail business is showing some signs of recovery. A recent survey of the principal Paris department stores shows that prices have been cut from 12 per cent to 15 per cent in most of them, but up to 25 per cent in a few. Most stores, but not all, have been able to compensate for these cuts by increased sales.” Germany Indirectly Concerned. BERLIN.—“Though Germany’s re- actions to any struggle which may de- velop out of the Italo-Ethiopian con- troversy are an important force be- hind the decisions which are being made in Geneva and various capitals this week, Germany is only indirectly concerned so far. Coal shipments have jumped on increased Italian or- ders and a rush of other customers in the storm area to lay in supplies; and Germany in getting rid of a lot of old ships to Italian scrap yards, and of a (Continued on Second Page.) - SLIGHT ADVANTAGE IS HELD BY DOLLAR British Pound Sterling Declines in New York Exchange Dealings. By the Associated Press. The dollar had a slight advantage over leading foreign currencies in foreign exchange markets yesterday. In New York the British pound sterling declined J; cent to $4.92%; French francs held unchanged at 6.59%s cents and Holland guilders ended about even at 67.61 cents. In London the dollar was higher at $4.92% to the pound and in Paris the American unit was a shade better at 6.589 cents to the franc. Based on the franc at its final New York rate, the dollar was valued at & premium of 64-100 of 1 per cent, the same as on PFriday, and compared with 16-100 a month ago. Robinson Crusoe Reasoning Promises Blg Clothing Boom Spectal Dispatch to The Star. NEW YORK, September 7.—Robin- son Crusoe needs a suit of clothes. At least, that is what retailers think, for they are estimating that sales of men’s clothing will show gains of 25 to 30 per cent in the next few months, u compared with last year. A prosper- ous season also is forecast for over- | coats. Crusoe, you will remember, discov- ered in the sixth year of his life on the island that the shirts and other clothing which he had brought ashore were “disintegrating mightily.” And, evidently, that is about the length of time that even men who are feeling the pinch of the “depression ship- wreck” can get along without laying in a whole new wardrobe. In his necessity, Crusoe turned to skins, but in these days wool is the men’s clothier. In the woolen mills, employment continues at a high rate, says the New York Wool Top Exchange | Service in a survey issued today. | Moreover, the recession that usually occurs between seasons has been ab- sent this year. Prices are going to be higher next ‘svflng. for some of the largest pro- | ducers have opened lines of suitings | at prices showing advances of 7}, to 10 cents a-yard over the opening levels of the previous season. Gabardines and flannels are selling in large vol- ume and the survey says that “one prominent line of tropical worsteds was withdrawn for further repricing opening two or thres weeks ago.” 3 SUNDAY BELIEVED BASED ON FALL OUTLOOK Business Improvement Held Not Yet Discounted by Wall Street. SMALLER CROP YIELDS PUSH UP COMMODITIES Prospects for Railroads Called Better—Firmer Money Rates Held Possible. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, September 7.—Se- curities and commodities have shown a disposition to advance this week. The strength in stocks at intervals during the period expressed the feel- ing among professionals and of the public that the present price level has not discounted the improvement in business or the probabilities of infla- tion. The highest prices for stocks were reached after publication of the letter of President Roosevelt, in which he said the long-sought “breathing spell” for business has now arrived. In the case of commodities, smaller crops and & lessened production have played their part in bringing about | some new high quotations for the | year. ‘The Italo-Ethiopian dispute has | been aired before the League of Na- tions with little satisfaction to the peace-loving people of the world, and Italy displayed an obvious intent to go ahead regardless of public opinion and political or financial conse- quences. One refreshing incident was the manner in which the Department of State at Washington dealt with ex- ecutives of the Standard-Vacuum Oil Co. in connection with its oil conces- sion in Ethiopia. Capital must be blind if it cannot see in advance the political implications of such an ad- venture or its effect in increasing those restraints by government against which it now rebels. Expansion in Business. A week broken into by a holiday again gives proof of expanding busi- MORNING, SEPTEMBER 8, 1935. WILL THEY STOP FOR “BREATHING SPELL”? Classified Ads Pages 5 to 12 ness. The most remarkable illustra- tions are those from the iron and steel trade and the electric power industry. The Iron Age states that production is still above 50 per cent of capacity, which compares with 18.4 per cent a year ago, and that the “holiday’s de- pressing effect on operations has provéd to be of short duration.” Figures for the last week of Au- gust show a gain in electric output of 11.2 per cent over the corresponding period a year ago. Once more the greatest improvement has occurred in the central industrial district of the United States. The aggressive sales movements in wholesale and retail trade that are initiated after Labor day are result- ing in a movement of merchandise considerably larger than in 1934. There is every indication of a busy Autumn in the building trades. The effect of these phases of growth in industry, and in the distributing trades, is clearly evident, at last, on railroad car loadings. These in the last week of August were larger than for any similar period since 1930. Now about 675,000 cars per week, they may be expected to reach 750,000 loads during the peak of the Fall move- ment. The importance of this on railroad earnings is obvious. During the first seven months of 1935 all that the carriers could earn on their property investment was about 1.70 per cent, which compares with 2 per cent in the unsatisfactory year 1934. It is reasonable to expect that comparisons in the remaining months of 1935, with those in 1934, will be favorable and that they will be reflected in a more friendly attitude on the part of invest- ors toward railroad securities. The drag on the rail group, espe- cially on the common stock and junior bond members of it, is the great amount of railroad mileage in bank- Tuptcy or in receivership and the delay in bringing out reorganizations that would permit the 10 or 12 large systems in complete or partial default to resume payments. There is little Rrospect of .effecting this so long as such wide differences of opinion exist among the various classes of security holders. The sooner, therefore, that the In- terstate Commerce Commission and the courts exercise their rights under the revised bankruptcy act, the better will all the interests involved be served and the earlier will the tone of the Nation’s business be improved. ‘Treasury Notes in Demand. The heavy oversubscription this week for the Treasury 3';-year 1!, per cent notes served to offset some of the unfavorable sentiment created in Wall Street the week previous by the partial subscription for the 11, per cent Federal Farm Mortgage Corp. is- sue and to bring about recovery in Government obligations. It is yet to be determined how far holders of the called Liberty 4% per cents will accept the offer of a 2% per cent bond to replace their present investment. In this portion of the final refunding operation of the war loans the Treasury reduced its inter- est rate to the extreme minimum per- mitted by general investment market conditions. This is a questionable policy. ‘While there is no perceptible change in the rate for time money, and bank deposits and bank ‘reserves are grow- ing, the extent of the business recov- ery and the prospects of future ex- pansion in industry give a sentimental excuse for an anticipated firming in loaning rates. This carries consider- able weight with the prospective buyer of high-grade securities. Compared with the best prices of the year, United States Treasury long- term obligations are down an average of 2 points and the best of the cor- poration bonds show a decline aver- having been advanced twice since the | *! aging 2% points. At the end of the week & number of the new public utility and industrial issues that had suffered a serious decline showed some igns of recovery. (c»maz, 1038. I‘ the m)‘-m IRON AND STEEL BOOMS BUSINESS Jump in Soft Coal Produc- tion Also Encourages Pittsburgh Area. By the Associated Press. PITTSBURGH, September 7.—Led | by advances in iron and steel, and a| jump in soft coal production, busi- | ness surged forward for August in Pittsburgh’s area of mines and mulls. Bursting seasonal shackles, business | for the usual dull month climbed to 68.1 per cent, the Bureau of Business Research at the University of Pitts-| burgh reported tonight. | Highest Since March. This is the highest figure since March in the district, embracing in- dustrial Western Pennsylvania. The figure for July was 63.3 per cent. For August, 1934, it was 56.6 per cent. ‘The bureau, which keeps indexes of all lines of business and industrial activity for the area, announced: “The steady gain in ircn and steel production throughout August is en- couraging because of the importance of this industry in the district. “In the week ended August 31 the index of iron and steel production was 60.4 per cent, the highest level reached since early February. Mine Operations increased. “Mine operations were greatly in- creased in the latter part of August, the coal index rising to 90.5.” ‘The announcement adds that marked gains were reported by most branches of industry.for the month, whereas industrial curtailment was general throughout August, 1934. |INDIANA LIMESTONE REPORTS BIG ORDERS President of Corporation Shows 132 Per Cent Increase Over Last Year. By the Associated Press. CHICAGO, September 7—A. E. Dickinson, president of the Indiana Limestone Corp., said today “new business entered on our books frcm last December 1 to August 31 shows an increase of 132 per cent over the same period the year before.” “New home building is being re- ported from all over the country,” he sald. “There is a scarcity of seven and eight room houses and four and five room apartments.” Dickinson added that & contract to furnish 936 carloads of stone for the new Department of Interior Building at Washington has been awarded the corporation. A second contract just closed ‘for the Acacia Mutual Life Insurance Co. Bullding in Washington requires 113 carloads. MONETARY GOLD STOCKS NEAR BILLION MARK By the Assogiated Press. The increase in the country’s monetary gold stock this year is within easy distance of the biilion- Jollar mark, following a further gain the past week. Except for brief lulls, the gold supply has climbed steadily, maintaining the fast pace set after t.he dollar was revalued early in 1934. ‘The monetary ;um stock, as shown in the weekly Federal Reserve System report, compares as follows: Week snded September 4, $9,209,000,000. Preceding week; $9,197,000,000. - Same |Peoples Drug Sales Jump 23 Per Cent, August Total Shows Peoples Drug Stores, Inc., re- ports sales for August of $1,652,- 045 against $1,335933 in August, 1934, an increase of 23.6 per cent. BALTIMORE, _September 7 (Special). —The Read Drug & Chemical Co. of Baltimore, has entered into a contract to buy the six Peoples Service Drug Stores here. These six stores, part of the Peo- ples Drug Stores, Inc., chain of 120 stores with headquarters in ‘Washington, bring the total of Read's drug stores in Baltimore up to 34, with many more through- out Maryland. BUSINESS CALEN DAR Many Important Events Affecting General Conditions Are Listed for September. Special Dispatch to The Star, NEW YORK, Septembver 7.—The following calendar of events af- fecting business in September has been compiled by the Standard Statisties Co. of New York: September 9 — General Motors sales report. September 9—Report on cotton ginned to August 31. Septamber 9.—Cotton crop report (including acreage abandoned since July 1). September 10 — Department of Agriculture general crop report. September 10—Report on United States Steel shipments in August. September 11—Machine tool ex- position in Cleveland. September 12—Report on cotton consumption in United States dur- ing August. September 12—Final date for ap- plication for funds for P. W. A. projects. September 16 — Bituminous coal wage and hour agreement expires. September 18-20—Annual meet- ing of the National Petroleum As- sociation in Atlantic City. September 23—Report on cotton ginned to September 15. September 23—Annual conven- tion of metal producers in Chicago. September 30—Report on world consumption of American cotton during August. NEW FINANCING DROPS. NEW "YORK, September 7 (#).— New State and municipal financing scheduled for next week totals $13,- 920,441 as compared with the revised total of $62,208,419 for the past week, according to the Daily Bond Buyer. \FOR MONTH CROWDED UNEVEN INDUSTRY AND TRADE TREND SEEKS BRIGHT SIDE Sentiment Is Optimistic De- spite Weather and Labor Day Drawback. |FALL SEASON OPENING WELL ABOVE LAST YEAR Business Leaders See Favorable Reaction to Roosevelt “Breath- ing Spell” Statement. BY RADER WINGET, Associated Press Financial Writer. Unfavorable weather, coupled with the Labor day vacation, caused an uneven trend in trade and industry | 1ast week, but the total for the open- ing of the Fall season remained well above the same period of a year ago. Sentiment was highly optimistic in most of the reports on the economic | status of the country, and the ims mediate view definitely was on the | brighter side. Business received a substantial | boost frum the statement of President | Roosevelt that a “breathing speil” | had arrived. and the reaction of busi~ ness leaders was regarded &s favore able. Reports on retail trade showed some sections advancing strongly. but others were hampered by cold or wet | weather. Increases Looked Far. In most of the larger communities it was believed a final check on the entire week would show aggregate in- creases because of the resumption of Saturday sales by some stores and the definite opening of the Fall sea- son with new merchandise on the shelves. ‘Wholesale markets generally were quiet, with buyers absent for the holi- day, but the belief persisted that ac- | tivity would swell to much larger volume when the reaction of the cus- tomer to new Fall lines is determined. The industrial side of the economic picture was not so good for the mo- BUTTER ADVANCES DESPITE SUPPLIES Much Faster Than Year Ago Now. By the Associated Press. CHICAGO, September 7.—Senti-| | ment in the butter trade on the mer- | chantile exchange has taken a bullish ‘turn despite the fact that holdings | of butter today were estimated in ex- | cess of 150,000,000 pounds. topping | year ago figures by 30,000,000 to 35,- 000,000 pounds. On September 1. holdings were estimated at around 155,000,000 pounds, which would be the fifth largest aggregate stocks on that date jon record. However, the markets have been advancing lately due primarily to the fact that production has been running as much as 10 per | cent less than last year and storage | stocks are being reduced at a much | more rapid rate at this time in 1934. | In the cash market extras are quoted around 25% cents compared with 25!2 a year ago. November futures are selling at 26!;, virtually ago. —— INDUSTRIAL INDEX DROPS DURING WEE Carloadings and Cotton Mill Out- put Fail to Offset Some Declines. By the Associated Press. NEW YORK, September 7.—The Associated Press weekly index of in- today for the second consecutive week, More than seasonal setbacks oc- curred in automobile output, steel mill activity and electric power pro- duction; carloadings and cotton man- | ufacturing gained; and building was unchanged from last week, with the result that the index and 60.6 in the same week last year. ‘The index, based on 1929-30 as 100, and adjusted for seasonal variation, follows with corresponding index fig- ures for its six component parts: l‘Aul PYE\L Yur Qosupostty tadex _ § Bleamal ahivity” n_mfg. activi Electric power p! 2.6 42 4 1 649 609 617 ~1935 b Special Dispatch to The Star. NEW YORK, September 7.—Now is the season of harvest from the farms under the seas. Many a farmer has had- trouble keeping his head above water these days, but the oyster “farms” are used to it. According to the “tongers,” oysters are always “on the ‘rocks’”—for that is their name for natural oyster beds. The oyster business hasn’t exactly been “on the rocks,” but for the last four seasons there has been such a decline in demand that the per person use of oysters fell from a pint a year to less than a half pint. This year the industry is going to do something week last year, $7,963,000,000. ’ apout it. Contributions based on gal- v Oyster Industry, Prepares for Re juvenation “on Rocks,” lons marketed will provide funds for a co-operative national advertising campaign in leading newspapers and magazines. Production, measured in bushels, cannot be foretold, for to a large ex- tent it depends upon demand, and it will take six to eight weeks for oystermen to take the measure of demand. The national commercial catch of oysters last year is esti- mated by the trade at 63,122,000 pounds, the wholesale value of which totaled just under $5,000,000. In 1933 the value of the catch was nearly $6,000,000, and thqt was only about Huge Stocks Being Reduced' the same price that prevailed a year | dustrial activity dropped back again | residential | declined to 72.7 from 73.6 last week | | ment in the aggregate. The Associated | Press weekly index of industrial ac- | tivity declined to 73.7 per cent of ths 1929-30 average, compared with 73.6 per cent the previous week. Holiday Ts Setback. It was pointed out, however, that the recession in most component parts of the index could be traced w the holiday influence. The only increase for last week was cotton manufacturing, where & slight rise in activity was shown. Some | attributed this change to seasonal fac- tors and o a more settled tone i the raw cotton market Business analysts were cheered, however, by the report on car loadings | for the week ended August 31, which showed a total of 679,861 cars, up 53,488 units from the previous week. Largest gains were shown in ship- ments of coal and miscellaneous freight. The total for the period was the largest since November of 1931. | Preliminary estimates on automo- bile output for last week indicated the adjustment in preparation for new models was continuing. Total produc- tion was expected to be well under the previous week and the same period of 1934, | Steel Production Falls, Steel production fell, of course, for the week because of the holiday. Out- put was estimated at 458 per cent | of capacity by the American Iron & | Steel Institute, compared with 47.9 per cent for the previous week. At this time last year steel activity was 184 per cent of capacity. Electric power production for the week ended August 31, was reduced 15 points, as measured by the As- ! sociated Press index, from the previous | week, which registered a new 1935 Residential building, at & high for this year. remained unchanged during that same period. In the securities market., greatest interest was in the conversion of the Fourth Liberty loan by the Treasury coupled with successful borrowing | of $500,000,000, and the announce- ment by J. P. Morgan & Co., that a new underwriting house, Morgan | Stanley & Co., Inc., would be launched by Morgan and Drexel partners of New York and Philadelphia. Detailed Reports. Detailed reports on business con- | ditions in Federal Reserve sections follow: Boston—Cotton textile operators in New England stepped up produc- tion in anticipation of heavy sales. A strong and generally upward move- ment in hides, skios and leather was noted as favorable to the shoe mar- | ket. A brisk demand continued for | wool. New York—Unfavorable weather curtailed retail trade during most of the week in the metropolitan area | with the level as much as 5 per cent under the 1934 week. Wholesalers reported slowness with out-of-town | buyers absent during the holiday period. Philadelphia—Fall business in Philadelphia continued to improve over last year, although rain in fered. A mild increase in manu- facturing activity was reported by important lines. Priees of commodi~ ties continued generally strong. Richmond—Stormy weather put s damper on business in the fifth Fed-. eral Reserve district. Retall trade slumped, and little activity was re- ported in the wholesale market. Bank debits were lower. Atlanta—Retail trade maintained a heavy sales volume in the sixth district. Birmingham steel operations rose 5 points to 45.5 per cent of ca- pacity. A two-year high was set by construction awards during August, the Manufacturers Record reported. SUGAR KELT HIGHEB .NEW YORK, September 7 (#).— ‘The 13 United States sugar refineries for the first eight months of 1935 had a total melt of 2,840,000 long tons and made deliveries of 2,590,000 tons. For the like period of last year half the wholesale value of the 1930 crop. 4 the melt was 2,370,000 tons and de- liveries 2,300,000 tons.