Evening Star Newspaper, June 30, 1936, Page 16

Fl TRADE RISE PACED BY STOCK MARKET Thirteen Months’ Upturn Coincides With Trade Improvement. (Continued from Fifteenth Page) tive business recovery on this side. This sort of reasoning, however, did not appeal to the rank and file of the speculators, who felt sure that the fall of the franc would spell a re- newal of the decline here. Toward the end of the six months it became evident that fears of re- patriation of French capital were not well founded. In the first place, out- right devaluation, the fixing of a new gold parity for the franc, was seen to, be very improbable. There was & possibility of a gold embargo and of severe exchange restrictions. When the new French cabinet un- der Premier Blum took office it was seen that the political and social pro- gram alone would deter the return of French funds, while in the background always there was the menace of a European war. It began to be plain, even to the most nervous of our traders, that there was no real threat to the American price structure from & withdrawal of foreign capital under the circumstances. New Deal Worries Street. Another cause of worry to Wall Street_has been the workings of the New Deal and the horrific possibility that it will have an extension of life after next November. Bitter com- plaint has been raised against various legislative reforms and the adminis- tration thereof and much of it has been justified. Then, too, we are in the midst of NANCIAL. Bank Continues To Issue Pleas for Balanced Budget By the Associated Press. NEW YORK, June 30.—If "persist- ence in arguments in favor of it count, the First National Bank of Boston will some day get the Federal budget bal- anced. Morth after month, without ever a let-up, the bank has urged in its monthly news leiters that the Treasury balance its budget. In its latest piece the bank sets forth its arguments thusly: “Reduction in governmental expenditures is a prerequisite to & bai- anced Pederal budget. “A balanced Federal budget is a prerequisite to impregnable Federal credit. Impregnable Federal credit is a prerequisite to sound currency. Sound currency is the corner stone of national happiness and prosperity.” STEEL PROSPECTS CLOUDED BY STRIFE Labor Warfare May Cause Revision in Present Trend of Industry. BY the Associated Press. NEW YORK, June 30.—With the mighty steel industry throwing down the gauntlet to the equally strong organized labor unions, the financial sector buzzes with conjectures re- | garding the outcome of the threat- ened conflict. The current rate of steel production | is around the best level since 1930 and, | unless unforseen happenings inter- a bitter political campaign, tradi- tionally unsettling to business. It would seem that great courage was required to buy stocks under the cir-| cumstances and yet stocks have been 1935 936 Utility bonds maintained their high level during the first half of this year. Carrier obligations dipped in the sec- ond quarter, following the sharp upswing of about 17 per cent from the October, 1935, low point. bought and are being bought. There may be disaster ahead, but a free mar- ket, broad enough to record the senti- ment of the whole investing world, does not foresee it. Under this head, also, those so in- clined may enter a demurrer. They will instance the public utilities. No form of enterprise has been subject to such concentrated attack as the light and power industry under this admin- istration. There is Government com- petition actual and prospective, plain and fancy, and continuous investiga- tions and attempts to reduce rates. Combined with rising costs of labor and material, to say nothing of mount- | ing taxes, there does seem to be reason for concern. It is the teaching of history, however, that campaigns of this kind ¢ventually cxhaust them- selves. If economically unsound, rea- #on sooner or later resumes its sway; if economically sound, no permanent damage is done anyway. Still, as a matter of opinion, this writer believes the future is not as dark as it is painted. Wall Street Over-Built, It must be admittec. that on the present scale of business Wall Street is over-built. If trading is to continue at its present pace, something will have to be done about the excess facili- ties, There are too many brokerage houses for the work they have to do. They simply can't all live. There is a possibility that the Fed- eral Reserve Board will modify the margin requirements which have cut down trading so severely, It is absurd that the loan value of stocks should be reduced to 45 per cent of the mar- ket when one can borrow 60 per cent of the estimated value of real estate from a savings bank and 80 per cent from the Government. The stock can always be liquidated, which is not | true of the real estate. | Of course, the intent is to stop speculation. Perhaps it will succeed; | perhaps not. Perhaps it is just an- | other noble experiment. It may be | heartless to add that, dismal as is the | outlook to the brokers, there is no logical connection between their dis- tress and business recovery or the value, as distinguished from the mar- ket price of securities. (Cepyright by the North American Newspaper Alliance Inc.) Data on ].Susiness Failures Compiled Over Long Period By the Associated Press. NEW YORK, June 30.—“Mortality” statistics on American business from 1857 to 1935 have been conveniently welded together in a table prepared by Dun & Bradstreet and included in & recently published book entitled “Be- hind the Scenes of Business.” The number of business failures in 1935 were only little more than one-third of the fold-ups in 1932, numbering 11,879, compared with 31,- 822 at the height of the depression. Liabilities involved in the 1932 fail- ures totaled $928,312,517, as against $230,120,886 in the latest year. The number recorded in the first year the records were assembled—1857—was 4,932, with liabilities of $921,750,000. Lol SHIPBUILDING CO—NCERN NAMES NEW MANAGER By the Associated Press. NEWPORT NEWS, Va., June 30.— J. B. Woodward, jr., was promoted from assistant general manager to general manager of the Newport News Shipbuilding & Drydock Co. at the an- nual business meeting of the directors here yesterday. Williams Gatewood, who for a number of years has been rupt, the mills are expected to main- tain satisfactory activities until well | into next month. | At the same time, it is realized that | strikes are possible before the turn of the third quarter so that the position of the steel makers later this year is now considered somewhat problemat- ical. | Current demand was said to be only partly due to increased prices on some products which go into effect july 1. It was thought probable that as much tonnage for stocking purposes will be | shipped in the coming month as in | June. August, aside from the possibility of labor complications, is likely to show a sizeable let-down in output due to the stoppage of automobile plants in preparation for new models. and to a probable tapering off of railroad de- mand. CORPORATIO REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS NEW YORK, June 30.—The follow- ing is today's summary of corporation news prepared by Standard Statistics Co., Inc., New York: Baldwin Locomotive Works.—A pro- test against the reorganization plan | has been filed in Federal Court, Phila- | delphia, by 555 preferred stockholders. Chicago Great Western R. R.—I. C. C. has approved proposal of this com- pany to contract with Keeshin Motor Express Co. to haul loaded trucks and | trailers on flat cars at low rates be- |tween Chicago and Minneapolis-St. | Paul; it is estimated arrangement will increase carrier's revenue as much as 1 $1,000,000 annually. ‘ Chicago, Rock Island & Pacific Ry. | —May net railway operating deficit | was $465,665, against net railway op- | erating deficit of $399,855; in 5 months |net railway operating deficit was | 1,879,563, against net railway operat- ing deficit of $1,178,882. Missouri Pacific R. R.—May net ‘railway operating income was $311,- ‘319. against $893,151; in 5 months net railway operating income was $2.732,244, against $1,484.897. New Orleans, Texas & Mexico Ry.— May net railway operating income was $69,064, against $168,851; in five months, net railway operating incom: | was $872,188, against $594,549. Wheeling & Lake Erie Ry.—May net railway operating income was $150,505, against $246,835; in five months, net railway operating income was $861,794, against $677,698. Castle (A. M) & Co—It was sald earnings for current quarter are esti- mated as being more than 25 per cent ahead of June quarter of last year, when net was equal to 72 cents a share on common stock. Commonwealth Edison Co.—De- cision of company’s plea for an in- crease in rates contrary to the de- mands of Illinois Commerce Commis- sion attorneys that the rates should pe lowered will be rendered in September. Long Island Lighting Co.—Suprem> Court Justice Schenck, Albany, denied 2 motion of company for a stay pend- Ing a review of an order of New York Public Service Commission reducing | company’s electricity rates approxi- mately $600,000 annually. American Airlines, Inc.—Post Office Department announced that suits filed by American Airways, Inc., prede- cessor, seeking damage of $4,851,000 for cancellation of airmail contracts, had been settled for $315,568. Transcontinental & Western Alr, Inc—Post Office Department an- nounced that suit filed by this com- pany, seeking $2,684,281 damages for cancellation of airmail contracts, had been settled for $183,865. United Air Lines Transport Corp.— Number of passengers carried in first five months increased 36 per cent over like 1935 period; air express gained 47 per cent and airmail 6 per cent. United Stock Yards Corp.—Public offering of $10,000,000 in securities is contemplated to finance the purchase of Swift & Co’s interest in nine stockyards by this newly formed company; John Dewitt, New York in- vestment banker, representing United Stock Yards, said the transaction has not been completed pending settiement of details and court approval. . ‘Wrigley (Wm.), Jr. Co.—Declared three regular monthly dividends of 25 cents a share each, payable August 1, September 4 and October 1. Remington - Rand, Inc.— Noiseless typewriter plant at Middletown has resumed operations. Atlantic Coast Line R. R.—May net railway operating income was $67,312 against net railway operating deficit of $67912; in five months net rail- way operating income was $2,119,313 against net railway operating income of $1,678,074. Chesapeake & Ohio Railway—Com- pany asked I C. C. authority to issue and sell $29,500,000 of 3}, per cent . works manager, was named a vice president of the company. These were the only changes made board. . A bonds, to refund the outstanding $24,= 784,000 of 473, series A, and $4,716,« 000 refunding and improvement 438, series C, now in the treasury, ) N BUSINESS INDEX BEST SINCE 1929 Exceeds Many Estimates, Appears to Reflect Per- manent Trend. (Continued from PFifteenth Page) tions and promises benefits which would have been fegarded as revolu- lutionary in 1928. These are expressed as emergency measures, although they may quite possibly become a perma- nent part of our administration of the national economy. Unemployment and relief go hand in hand. The fact that they have shown comparable little response to the substantial recovery in business in the past six months, and more particularly in the last year, suggests that they are becoming large-scale permanent prob- lems. Associated with them is the question of secial security, including old-age pensions and unemployment insurance, which must be developed in a satisfactory manner either under Federal or State authorities if recur- ring disputes and demand for a greater proportion of the national wealth are to be avoided. It is obvious that there must be amendments to, the Constitution in order to meet the exactions and the penalties of an age that makes in- dustry paramount. It is difficult to determine which is the greater evil, the monopoly in industry, which has been growing in the past six years, or centralization of government. Had the States been compelled to bear the responsibility of protecting their citizens against the ravages of the depression they would have been crushed. Every crisis from that of the banks in March, 1933, to the | Eastern floods last April, has com- | pelled intervention on the part of the National Government in order to preserve and then reconstruct what the individual State could not do. Sick Industries Recovering. The sickest of the great industries from 1931 through the greater part of 1935 were iron and steel, building construction and railroad transporta- tion. The first has now recovered to & point where profits are possible on | the 70 per cent level of production. In the building field contracts this Spring have been greater than thosq in many years, though still far below the abnormal voiume in the five | years ending with 1929. In railroad | transportation the improvement has | been slow but constant. probability it will continue. In extending for the rest of this year the emergency freight rates, the Interstate Commerce Commission ex- pressed the opinion that, within the next six months, trafic would ex- pand, because of the increasing in- dustrial activity, and with it there was the likelihood of a reduction in transportation. It is a fair as- sumption that more dividends on rail- road stocks will be resumed in the half year. A number of systems have been able to retire their bank loans and their obligations to the R. F. C. and replace them with bonds to which the public has been an avid subscriber. There is, however, the blight on | the transportation industry of the | unprecedently large amount of mileage | within the jurisdiction of the court. | And there is little prospect that this | situation will greatly change during | the rest of the year. Creditors and | equity holders are too far apart in their ideas of equality to permit the kind of reorganization plans that will | be acceptable to the majority or to | the Federal authorities which are heavy indorsers of their notes. There is also a reluctance on the part of creditors and of managements to ac- cept the changes in the railroad situa- tion and face them courageously. So long, therefore, as about 30 per cent of the total railroad mileage of the United States is in a bankrupt condition there will be an unfavor- | able public attitude toward the securi- ties of railroads as a whole. It is noticeable that the investments of the life insurance companies in railroad bonds are diminishing, while those in public utilities are increasing. Utilities Staging Comeback. The recovery in the bonds, de- bentures and common and preferred stocks of the power and light cor- porations has been a notable feature of the investment market during the past year and within the last six months as well. It is estimated that the market value of such issues, listed and unlisted, has risen approximately $5,000,000,000 since their low level was established during the heat of the public utility holding company cam- paign in Congress in the first half of 1935. This appreciation has followed a shrinkage in values that was not jus- tified by any of the legitimate ele- ments entering into an appraisal of security values. It was the result of heavy losses to those who were caught up in it. Power and light production is | greater today than ever and, while | the securities of the utility group have not advanced in proportion to the in- dustrials, they have made improve- ment commensurate with their earn- ings and prospects. In the 17 mopths from January 1, 1935, to June 1, 1936, over $2,000,000,- 000 of public utility securities have been refunded. The average reduction in the carrying costs of the bonds or preferred stocks called has been around 1%, per cent, or $15 per annum on each $1,000 bond. This represents & saving each year to the debtor cor- porations of about $35,000,000. (Copyright, 1936, by the North American Newspaper Alliance, Inc.) {U. S. OFFICE EQUIPMENT MEETS. COMPETITION By tne Associated Press. American manufacturers of office equipment are meeting increasing competition in South America from German products, the Commerce De- partment has been informed. The United States’ share of office equip- ment imports into Colombia, it was noted, dropped to 76 per cent last year from 88 in 1934, while the German percentage increased. RAIL LOADINGS CLIMB. NEW YORK, June 30 (#).—Trans- Missouri Kansas Shippers' Board has estimated loadings of 29 commodity groups in its territory in the third quarter at 371,202 cars, against 334,783 in the like 1935 quarter. e h MORE PLANES PURCHASED. NEW YORK, June 30 (#).—United Airlines has announced it is buying five additional 21-passenger Douglas airplanes costing $103,000 each. The new planes will bring the company’s flest of this type to 28. A And in all | an emotional outbreak that brought* IDLE FUNDS AID SECURITY MARKETS Speculative and Investment Forces Get Support From Easy Money. BY VICTOR EUBANK, Associated Press Financial Writer. NEW YORK, June 30.—Financial markets bowed out of the first 1936 semester with satisfaction and high hopes for an even better performance in the second. During the six-month period just ended speculative and investment forces received support from contin- ued - easy money conditions, large amounts of idle funds seeking employ- ment and substantial improvement in virtually all lines of business and in- dustry. Disastrous floods failed to halt recovery and the start of the presidential campaign created no ap- preciable market stir. On the other side of the picture was the cloudy foreign situation, with monetary, social and war dangers threatening from time to time. There was recurrent weakness in gold bloc monies and devaluation of the French franc was discussed as an active po- tentiality. Passage of the new tax bill, impos- ing penalties on undistributed com- pany profits, injected a question mark into corporate affairs, but brought hopes of larger disbursements to shareholders. First Break in April. Stocks, after a steady and almost uninterrupted advance since the early part of 1935, experienced their first break in April. It was the longest and one of the most extensive rises on record. Brokerage observers blamed the de- cline principally on the sharp swing to the left in the French elections and fears that, with the possibility of the new government devaluing the franc, huge commitments in American | securities from abroad would be with- |drawn with a consequent downfall of equities prices. Most analysts, however, attributed the reversal of trend to the usual technical selling which follows a long upturn. The stock list retraced about 28 per cent of its lengthy rally before | getting back on the high road. The Associated Press average of 60 shares reached its peak for the year | at $64.80 on April 13. At the end of June the index was not a great dis- tance under this figure, although the market was highly erratic during the last two weeks. The status of the money market, | with a direct bearing on. stocks and | | bonds, was shown by the fact no listed | United States Government obligations was selling at a yield of as much as 2% per cent. Boosted to 1 Per Cent. From last October 30 until May 8, call money brought only three- fourths of 1 per cent. On the latter date the New York banks boosted the rate to 1 per cent, not because of any exceptional demand for funds, but with the contention that handling such loans was unprofitable at the lower figure. Secondary bonds followed equities | closely, but low-yield issues sold at | about the highest levels known to the financial district. On the other hand, forelgn bonds traded on the | | New York Stock Exchange reached a | low average for the year in June as doubts arose over the maintenance of interest payments of some govern- | ments. Polish bonds received severe setbacks as service in blocked zlotys | | was substituted for dollar interest, Domestic refunding operations at- tained large proportions and new financing demand began to appear. Industrial stocks easily took the play throughout the first half of the year, many establishing new tops since 1930. Even the utilities were in mod- erate demand, although this 8roup was still under the spell of greater gov- | ernmental regulation and moves for | rate reductions. At the same time ivleclric Power production was at the | highest ever recorded. The rails moved a little farther up than the utilities as freight traffic expanded, | and some of the carriers began to re- | port net income for the first time since the depression. Rail Pensions Blocked. While the transportation systems were unsuccessful in their fight against a cut in passenger fares, they did receive a lift from the United States District Court of the District of Columbia last week invalidating the railroad retirement law of 1935, which would cost the carriers a sizeable sum annually. Extension of most emergency freight surcharges was also helpful. The steels were a little groggy to- ward the finish of the second quar- ter as a unionization drive and prob- able new wage increases came to the fore. But steel mill operations were around the best in six years. Merchandising stocks, generally, re- sponded to the passage of the sol- diers’ bonus bill, although discounting early the final cash payment. Automobile stocks were among the strongest as sales of a number of companies were the largest in history. The olls reflected expanding gasoline consumption. Other issues responded | to favorable earnings statements and increased dividends. 5 Brokers blamed high-margin regu- lations for the dwindling of f‘h‘: tz:- ing volume in the second quarter, but it was noted that for the six months, total transfers approximated 260,- 960,000 shares against about 125,000,~ 000 in the same period last year. The turnover in bonds amounted to around $1,741,405,000, par value, com- pared with $1,674,952,000 in the 1935 months. . CHAIN SALES MOUNT. NEW YORK, June 30 (#).—Chain Store Age reported May trade for that type of merchandising continued the extraordinary seasonal gains and es- tablished the fourth successive monthly rise of the year. All important chan- nels of business expanded except groc- ery sales, which receded slightly, it re- vealed. . STEEL ADDITION READY. NEW YORK, June 30 (#).—Cruci- ble Steel Co. has completed the addi- tion to its Midland, Pa,, plant for the production of tin plate. The company is said to have perfected an electro- deposition process for plating elec- trically rather than by dipping steel sheets in molten tin as now done. GROCERY SALES DOWN. NEW YORK, June 30 (#).—Sales of National Tea Co., operating grocery stores in. Chicago and Midwest, for the four weeks ended June 20 amount- od to $4,628,100, compared with §5,- 037,572 fn the like 1938 week, NG _STAR WASHINGTON, D. C., TUESDAY, JUNE- 30, 1936. FINANCI Price of Cattle Is Lowest Since Midsummer of 1934 Wholesale Price of Cattle at Chicago Based Upon Prime Steers 1,000 to 1,500 Lbs. 1934 GRAIN PIT CHIEF HAILS OPTIMISM Boylan Says Corn Growers Have Regained Seahoard Markets. BY JOHN P. BOUGHAN, Associated Press Market Editor. CHICAGO, June 30.—President Rob- ert P. Boylan of Chicago’s Board of Trade says & more optimistic senti- ment pervades the grain trade as the first half of 1936 ends. One of the chief reasons President Boylan gives for the improved feeling is that corn growers of the Midwest have regained the seaboard market, lost to them through the heavy im- portation of Argentine corn for sev- eral months. In a midyear review to- day, he pointed out that since late in the Winter there has been an active shipping demand for corn, and he added: “This situation is extremely impor- tant to the farmer and to the gen- eral economic condition of the coun- try as well. It has made already for a greater measure of prosperity, spreading outward from the Middle West, in which transportation agen- cies and other necessary elements of the grain industry have shared. At the same time farmers have enjoyed | & particularly profitable feeding sea- son as the price of hogs has contin- ued high compared to corn. Uncertainties at End. President Boylan continued: “An- other factor, which has been men- tioned before but bears repetition, is that members of the Chicago Board | of Trade and of other commodity ex- changes are relieved of legislative un- | | certainties by enactment of the com- modity exchange bill. “In the first months of the year, uneasiness over legislative proposals operated to curtail the volume of trading in futures contracts, although there were many influences that or- | dinarily would have brought increased | activity and perhaps higher prices. A further phase that worked against the wheat market in particular, Presi- dent Boylan said, was that prices for Canadian wheat went to such low levels there were further imports of Dominion wheat into this country, with the threat of even more Canadian receipts if domestic prices had ma- terially advanced. 2 Premiums Are High. “Despite this handicap,” said Boy- lan, “farmers in this country have re- ceived comparatively high prices for their wheat, as premiums for nearly | all grades were high most of the sea- | son. Mill buying slackened late in the Spring and the more extrava- | gant cash wheat premiums were re- duced materially. At Kansas City in May the price of ordinary No. 2 hard Winter was reduced to a level which permitted the shipment of a substantial quantity to Chicago, re- sulting in & late collapse of the price for May wheat here.” Summing up, President Boylan con- cluded: “The Winter wheat crop for 1936 promises a fair yield, but Spring wheat prospects have faded rapidly the past few weeks. Doubtless this means that premiums for cash wheat again will be relatively high the com- ing year. “Winter wheat is beginning to move in volume and, owing to the losses threatened in the Northwest, South- west farmers are obtaining fairly high prices.” Price Ranges Given, During the six months wheat values in Chicago. as measured by the pres- ent future delivery contracts—July, September and December — have ranged from 82} cents a bushel to 98% cents. The corresponding range in corn has been 52%-67%; oats, 241,-32% ; rye, 493-68%; lard, 9.25- 1240, and clear bellies 12.00-14.75, LISTING IS APPROVED. NEW YORK, June 30 (#).—The Governing Committee of the New York Stock Exchange has approved a recommendation of the Listing Committee to list 757,105 shares of no par capital stock of General Thea- ters Equipment Corp. Drive to Increase Crude Oil Prices Wins Co-operation By the Associated Press. NEW, YORK, June 30.—The vig- orous campaign being waked by in- dependent petroleum producers for higher crude oil prices had benefited by & larger measure of co-operation than at one time was thought pos- sible. Latest advices to Eastern oil cir- cles is that Texas, Oklahoma, Kansas and New Mexico producers are cut- ting production allowable in July ap- proximately 5 per cent below the United States Bureau of Mines recom- reduce stocks. Added weight has been given the move by unconfirmed gossip that some of the major companies are tacitly in favor of higher postings and the belief in well-informed quarters that demand throughout the Summer will exceed even the liberal forecasts that have been made. MACHINERY TRADE Seasonal Slackening, With Political Uncertainties, to Be Influences. 8pectal Dispatch to The Star . NEW YORK, June 30.—Machinery makers face a comdination of seasonal slackness and political uncertainty that is likely to modify the normal need for replacement during July and August, says American Machinist. “Should a swing toward Landon set in it would no doubt create a feeling of confidence that would be materially expressed in an increase in orders. Otherwise, resumption of the upswing is likely to be put off until September. June reports showed many localities maintaining recent levels while others have already felt a slight falling off. “New England found June business good, even better than May. Price increases contributed to the best month since 1929 in the New York district. Business here is on a high level, with no evidence of Summer dullness. Both orders and inquiries are holding up well in Philadelphia, with no sign of hesitancy as yet. Buy- ers there were apparently not dis- couraged by the jubilance of con- vention delegates. “Pittsburgh, too, finds activity satis- factory, with inquiries and orders for individual machines in fair volume. Good business is anticipated through- out the Summer, despite John Lewis’ efforts to unionize the sieel mil Domestic orders have fallen off Cincinnati, a condition somewhat off- set by a good volume of foreign sales. Prospects are for a quiet Summer, but with volume much above that of last year. Employers are sincerely hoping that labor troubles will not spread. “Cleveland finds business only fair, although one or two concerns have noticed an increase in the past 10 days. large ads offering work for skilled men. with current orders good and no in- terruption as yet in sight. A down- ward movement, discernible in Detroit, is expected to last through August. | Tool shops are enjoying a healthy business, however. g “Chicago reports a static condition, with orders in abeyance, but slow to be released. Good skilled labor is also a problem here.” SUGAR EXPORTS DOWN. NEW YORK, June 20 (#).—Refined sugar exports by the United States during the first five months of this year totaled 19,126 long tons, com- pared with 34,783 tons in the similar period yast year, according to Lam- born & Co. The decrease was about 45 per cent and the total the smallest for any comparable period since 1933. —_——— . Electric Power & Light Corp.—Net income, 12 months ended May 31, was $4,568,636, equal to $5.94 a preferred share against deficit of $113,190. THE MID-WESTERN DROUGHT AREA ACTUAL COMPARED WITH NORMAL RAINFALL, SIX MONTHS 1936) Severe drought conditions prevail in the Northwest plains and the Southeast. Weather Bureau figures include the week ending June 16. Although coastal stutufil:n the Southeast have had better-than-: rains for the months, most of it Jell in the early Spring, May and June precipitation has been e | mendations in & concerted effort to * FACES RECESSION The Plain Dealer carries a number of ' Prospects continue bright in Toledo, | .| against $108,302,394 in the 1935 period. CONSUMERS TURN 10DURABLE G0ODS {Demand for Products Other Than Necessities Is Shown by Report. BY FREDERICK GARDNER, Associated Press Financial Writer Widening consumer demand for goods other than immediate necessi- | ties of life was portrayed today in a Commerce Department report on | wholesale trade in May. Freer spending for home equip- ment, jewelry, automotive supplies, | hardware and electrical goods put | those groups at the head of the list | in gains over the same month last | year. Trade analysts saw in these trends further evidence of expansion in mass buying power and loosening of the | consumer’s purse strings for purchases deferred during depression years. The biggest recent gains in whole- sale distribution, it was noted, had | been in lines which usually are hit | hardest by depression &s purchases of durable goods are postponed until the | times improve. ! Building Revival Cited. ; Revival of new home construction Wwas seen as one of the most power- ful forces promoting demand for so- called “consumers’ durable goods.” In the May survey of wholesale trade, compiled by the Commerce De- | partment in co-operation with the Na- | tional Association of Credit Men, plumbing and heating equipment sup- plies topped the list with an increase | of 36.4 per cent. Sales of lumoer and building ma- terial were up 32.6 per cent, electrical | goods 29.4, jewelry and optical goods 207, automotive supplies 18.8, hard- ware 18.2 and furniture and house furnishings 17.5 per cent. | | Food Sales Decline, At the other end, sales of groceries and foods were off 2.3 per cent, cloth- ing and furnishings were down 7.8 and | footwear sales dropped 29.4 per cent. | Percentagewise, gains in the durable goods groups, particularly building sup- plies, were accentuated by the low level | of business before the upturn began last Summer. In value, it was noted, | food sale comparisons were influenced | | by somewhat lower prices this year. | Nevertheless, the showing was re- | | garded by some analysts as a striking | exhibit of the return of consumer buy- | ing to more normal channels. The survey was based on returns from 1.223 wholesalers in 19 classifica- tiops of business. - DAILY OIL OUTPUT GAINS 7,971 BARREL | | | Oklahoma and East Texas Both | Averages in Week. By the Associated Press. TULSA, Okla, June 30—Daily, | gross crude oil production in the United States increased 7971 barrels | to a daily output of 2,968,728 barrels | during the week ending June 27, the | Oil and Gas Journal reported today. | Oklahoma reported an increase of 10,975 barrels for a total of 555,325 barrels daily. East Texas' daily pro- duction was 445,097 barrels, an in- | crease of 947 barrels over the previous | week. In the total State of Texas there | was an increase of 1,555 barrels, for | a total of 1,170059. A 1661-barrel | daily increase in Louisiana brought that State's production to 222,723 barrels daily. California produced 570,800 barrels | daily, & decrease of 11,350, while in| Kansas a decrease of 3,175 barrels brought production to 146,000 barrels daily. Eastern fields, including Michigan, showed a gain of 7,631 barreis daily to a total of 146,831 barrels. Kroger Earnings Reveal Decrease Below 1935 Mark NEW YORK, June 30.—Kroger Grocery & Baking Co. operating a chain of grocery and meat stores in the Middle West and South, reported consolidated net income of $984,840 for the 24 weeks ended June 13, equal after preferred dividends to 54 cents & common share. In the like 1635 period the com- pany’s net income amounted to $2,- 353,948, including & non-recurring profit of $402,764, or $1.30 a common share. Sales totaled $107,476,976, F. D. CORLEY TO HEAD MARSHALL FIELD & CO. £y the Associated Press. CHICAGO, June 30.—Frederick D. Corley, vice president of Marshall Field & Co., was elevated to the presidency today to succeed John McKinlay, who resigned, effective July 1. - Show Larger Production | Corley has been associated with the n s 8210, AL. COTTON FUTURES SPUR CONFIDENCE Markets Adjust Themselves. Handily to Changes in Fundamentals. BY BERNARD O'HARA, Associated Press Financial Writer. NEW YORK, June 30.—Cotton fu- tures markets adjusted themselves handily to drastically altered funda- mental conditions during the first half of 1936. The principal force in the transi- tion was the Supreme Court decision January 6 eliminating.the A. A. A. on the ground of unconstitut.onality. Since that date the raw cotton price structure, trade economists have as- serted, has been in the process of gradually freeing itself from the influ- ences created by the Government's agricultural program. Obscured by Duliness. Observers of the price trend con- tended that the work of adjustment had been obscured by the market's outward appearance of inertia, and narrowness. Nevertheless, as the sec- ond half of the year dawns, futures are $3 to $7 a bale over the levels prevailing at the end of 1935. New York spot cotton is currently quoted around 1243 cents a pound against 12.10 in December and the first half low of 11.25, reached in February. Despite differences of judgment as to advances of the Federal price-sup- porting aims under A. A. A, cotton trade quarters generally are sald to feel confident that the market is well enough situated to work out its des- tinies without outside aid. To most of the experts the action of the Government authoritties in liquidating a large proportion of Fed- eral-controlled staple without unset- tlement of the market stands as one of the notable developments of the period just ended. Pool Holdings Reduced. Producers’ pool holdings, it is Indi- cated by figures from official sources, have been reduced from a maximum of around 1950000 bales to some- thing like 475,000 bales, as of Mav 31. Meanwhile Government loan stock declined from 4,499,000 bales to around 3,857.000 bales. It has been estimated that most of these stocks have gone into channels of consumption. Entered in the log as another en- couraging development is the pro- nounced upturn in the manufacturing divisions since the latter part of May. This improvement, textile interests point out, has been reflected by ex- panding distribution of cloth, reduced mill inventories and gains in unfilled orders. Furniture Firms See Best Volume Since 1929 Ahead B the Associated Press. GRAND RAPIDS, Mich., June 30.— Furniture manufacturers who will celebrate the centennial of the estab- lishment of the industry here in July opened their Summer market and ex- position with the prediction that sales would exceed those of any year since 1929. Exhibitors said imnroved economic conditions appeared tn be reflected in the demand for more luxurious fur- niture. The market clcses July 18, CLOSE TO BILLION SPENT ON SPORTS The Index of New York Trust Gives Interesting Statistics on Annual Expenditures. Special Dispatch to The Star. NEW YORK. June 30.—The Amer- ican people spend close upon $1.000.- | 000.000 a year on sports the Index of the New York Trust Co. states in an article in its current issue on sports as an industry. It is estimated that the annual cost of all sporting and athletic goods aggregates $500.- 000.000, and such expenditures of sport enthusiasts as country club dues and fees some $200,000.000, while the sum of the estimated 256,000,000 paid ad- missions for all sporting events is at least $125,000,000, Although fishing, billiards and bow1: ing. ping pong and trapshooting, each with more than 5,000,000 followers, are said to be the most popular sports, the Index singles out golf as the most expensive of those with a large mass following. It estimates that the annual out- lay of golfers in equipment, club dues and caddy fees amounts to about 15 per cent of the total national sport bill. Foot ball is said to follow golf from the expense angle,’with tennis, bowling, fishing and hunting, bicycling, due to the large number of devotees, also representing heavy annual out- lays “Figures mentioned herein are neces- sarily inconclusive, thé general totals | are rough approximations,” the Index concludes. “Nevertheless, they indis cate clearly that the American peo- ple every year spend a vast sum on sports.” Brokers’ Comment NEW YORK, June 30.—Most of to= day's stock market commentators were fairly optimistic. Frazier Jelke & Co.—The market still lacks vigor, but it is noticeable that volume dries up when selling ap= pears. Shields & Co.—With a week end holiday ahead there is little chance of a renewal of aggressive leadership. Lambern, Hutchins & Co.—The out- look continues for a decidedly selec- tive market. Thomson & McKinnon—The man- ner in which the list. withstood selling in the steels was a source of comfort to those long of stocks. Hornblower & Weeks—We would expect the current correction to be completed by midweek at the latest. Weingarten & Co.—The recovery tide is strong enough, we believe, to overcome handicapping factors. Redmond & Co.—Selectivity con= tinues to be the keynote. Cohen, Wachsman & Wassall—The action of the market reflects a lack of interest rather than any urgent desire to liquidate. Abbett, Proctor & Paine—The trend, we believe, remains upward. Western Maryland . Railway—Pre- ferred share earnings, five months ended May 31, were $2.82 against "