Evening Star Newspaper, July 13, 1936, Page 15

FINANCIAL. BUYING DWINDLES IN GURB MARKET Stocks Turn Irregular in Narrow Trading After Firmness. By the Assoctated Press. NEW YORK, July 13.— Buying dwindled following early firmness in the curb market today and stocks turned irregular in narrow trading. Activity contracted somewhat as pivotal shares showed only minor changes from the previous close. Com- paratively wide swings were made by » Royal Typewriter, up more than 2, and Safety Car Heating & Lighting, off a point or so. American Cyanamid moved up a major fraction, while smaller gains were recorded by Amer- ican Gas & Electric and Bunker Hill & Sullivan, e _DULLNESS MARKS TRADING IN WOOL Few Houses Report Better Ip quiry, Especially in Woolen End of Week's Market. £\ the Assoctated Pr BOSTON. July cial Bulletin states s. 13.—The Commer- “The wool market continues to mark | time, for the most part, although a few houses report more inquiry, espe- cially in the woolen end of the market. | Am G&E pf (6) . | Bellanca Atrcraft By private wire direct to The Star. Stock anc Salee— Dividend Rate Add 00. High. AeroSupply (B). 4 3% Ainsworth (2) 2 52 Alr Investors Ine 2 2% Ala GrSou (al1%) 50s 54 Ala Pwr pf (6) 10s 72% Alabam Pw pf(7). 20s 82% Allen [ndust (1).. 11 21 Allled Pro(A)1% 1 21% Alum'n Coof Am 750s131% Alum Goods t60c. 2 1T% Alum’n Lta 1 Am Beverage._ 1 AmCitlesP& L (A) (8) .___ __100s Am City P&L (B) 22 Am Cynam B 60c 14 Am Fork & H (1). 50s Am G&E (1.40) - 29 758114 Am Gen Corp 4 9 Am Gen C'p $2 pf 508 Am Hard Rubber 1008 Am Laundry(40c) 2 Am Lt&Tr (120). 3 Am L&T pf (13%). Am Maracaibo Am Superpower . 10: Am Superpwr pf_. Anchor Post (d) __ Angostura (20¢) . Apex Elec Mfg___ Appalachian Elec 331 20 42% 14 111 4 1% 6% 28% 1 1 2 6 1 2 2 28% 28% 13 35 3 6% 6% 6% 6% Q 10 2 43 2y Ark Nat Gas (A) . Ark Nat Gas cu pf Art Met Wks60c. 1 Ass0oG & E (A) 20 Asso ln\ast('l‘a)lfl\)l “l 5 7 Atlas Corp war___ Atlas Plywood.. | Austin Silver | Auto Vot M(50¢) 2 Ax-Fisher(3.20)A A(’h.( Babcock& W1l (1) 200s 9 4 BlissCo (EW).. 2 Blue Ridge Corp.. Blumenthal §__ Bower Roll B (1)~ | Eridgeport Mach_.. | Brill Corp (A) .. “The bulk of the business which has | gry)j Corp (B) been done has been in the fine and *fine medium-class 3 and 4 wools of ordinary to good. French combing type at prices about on the level of a week ago. “In the West, operations have slowed materially. Dealers’ bids are lower basis, but appear to be securing little wool, as few growers are willing to sell for current bids. oreign markets are a bit stronger | n on rather better business, in line | with the London sales. “Mohair has been 2 bit slow, but very steady.” .SALES JUMP REVEALED BY PROVIDENT MUTUAL | NEW YORK, July 13 (Special).— Franklin C. Morss, manager of agen- cies of the Provident Mutual Life In- Jlan(‘e Co. of Philadelphia, nounted to $12.437.000, a 32 per cent crease over quota. The new paid business was $3,500, 000 in excess of the corresponding fig- e for June a year ago. Forty-five of | company's 62 agencies equalied exceeded their quotas, he said. BONDS ON THE CURB MARKET. DOMESTIC BONDS Alabama P Alabama Pow Alabama Pow Aiuminum Co uminum Ltd Rn3g i78 0 X0 3058 | Crocker Wheeler 1113 | 10035 1115 14 13% 14 10432 1043 10435 10275 1027 1 106~ 106 106_ 108, va Wes'rex U 35 2 - POREIGN BONDS, 1SS 3 S Ta'md cH E 05 '45 - ww-—With warrants. xw—Without warrants. n—New, i oWhen lssued, p) —Stamped. ecwotiability impaired by maturlty. 1‘ ‘tCompanies xepl:rud in receivership. » W | Can Indus Aico A { Colt’'sPF A (1%) Brill Corp pf_ British-Am O] reg (80c) Brown Fence Wire (A) (2) Brown F&WB 1.20 Brown Forman _. 38 248, 1 1 3 287% 29%, 10% 200, 9% in a | Buffalo Niagara & Estpt 18t pf(5) 508105% Bulova Wevpt 1008 64% Bunker H&Sul(t2 275s 81 Butler Bros 9% Cables& Wire(B) 1 2, Can Car & Fdry pt 258 l“v 105% 64 80% 9% % 18t T4 15 o, 118, Can Marcont Carib Syndicate Carrier Corp .. Catalin Corp Cont HG&E vte qow C(n'ml F‘“r&Lt 7% pf (315) Cent& S W Ut!l = Cent States L l\ Cent States Elec sunces the. new business for June | C.m“,sm“s 6% pf 3258 25 Electric 79 pt 300s 484 Centril Pine (40c) 1 4% Chi Flex Shaft +2 1200s 48% Chicago Rivet & M (t1%) Citles Service Citles Service pf Citles Servtce (B) ve pf(BB) \c Pwr & Light $6 pt City Aut Stpg 60c Claude Neon Lts .. Clev Tractor Club Aluminum __ 1 26% 155 5u 19 65% 2 6% 10s 63 50s 6514 8 15% SR 3 104 2 1% 9 44% | Com'with Ed (4) | Como Mines | Consol Afreraft. _ | Cons Copper Columbia Gas & Elevcv pf (5) 350s 110 Columb Ofl & Gas 19 41 Columbia Pic (11)100s 39% 3 41093 Com'with & Swar 57 % Community P L 1st pf 3215 115 8 61 Censol Gas of Balto (3 60) 3 Cons Min & Sm (1) 25 Cons Retall St Cooper Bessemer Cooper Bess pf A Copper Range__ Cord Corp orroon & Reyn _ | Cosden il Me (d) Crane & Co Crane Co pf (37) Creole Pet (a25c) 6 1 4 6 3 15 28 2258130 3 11 20 1 3 Croft Brewing __ Crowley Milner _ Crown Drug alle Crown Drug pt 1% Cusi Mex AMining 13 ! Darby Petr (50e). 1 Derby Uil & R 14 Derby Oil&Ref pt 150s Detroit Gray Iron Foundry (20c) Dictographalsc) | Doehler Die Cast | \ Dow Chem (2.40) | Duke Power (3) __ Duval Tex Sulph_ Eagle Picher Lead (al0c) Eastn G&F Asso Bastn G&E orof (43) - 100s 74 Eastn States Pdr £astn Sta Pw (A) Eastn Sta Pw (B) Easy Washing Mach B (150) Edison Bros(1.60) Kisler Elec Corp Elec Bond&Share 23 Elec Bd&Sh pf(6) El Pwr Associates El Pwr Asso (A) kiec Pwr & Lt 2d pt 1A) 310s | Elec Sharenola'e 1 Elgin Nat W a75c 100s Emp Dis Elec pf_ 100s Emp G&F 6% of 258 Emp G&F 6% %pt 258 Emp G&F 7% ot 50s Emsco Derrick(1) 6 Equity Corp European Electric Ltd bd rts Ex-Cell-O Air & Transp (alse)- Ferro Enamel (1) Fidelio Brewery Fisk Rubber Flintkote Co (1) FlaP& Lot Ford Motor (Can) A (a75e).. Gen Electric Ltd reg (b37%ec) __ Gen Firep't (40c). Gen Invest Corp... Gen Out Adv pf. Gen Tel (azbe) Gen Tire & Rub_ Gilbert (AC) .. Glen Alden C (1) Godchaux Sug(B) Gorham vtc ex(1) Grand Nat' IFilm_ Grand Nat Films Inc rights_ Great Atl & Pac Tea n-v (16) Gulf Oil (a1) Gulf St Utpf 5 Harvard Brewery Hazeltine (3) . Hecla Min (60c) Heyden Chem(f1) 2 Hollinger G(t66c) 18 Horn&Hard t1.60_ 758 3 Hudson BM&S(1) 9 Humble Uil (1)__. 6 Huyler's of Del. 7% pfstp (d)__ Hydro Elec Secur Hygrade Food Hygrade Syl (2) 111 P&L 6% pf .. 50s 51% 111 Pw&Lt $6 pf__ 1300852 [mp Of] Ltd coupon (t60c). 9 21% Imp 01l Ltd reg 4 6 6 0 4 6 31 35% % 5% 338, 52 19% 19% 16% 1% 841 16% 7 5% 15% 16% 18% 2% 5% 60.115!& 115 115% 84y 86 86 4 W% 14 14 11% 11% 46 46 15% 15% 36% 36% 508 13% % (150¢) 121 Ind Pipe Line 40c 1 6% Indiana Sve 6% pf 30s 27 ins Coof N Am(2)300s 73% 208110% 110 110%; 65 | Nat Union Radto. | Nebel (Oscar)_ | Niagara Hudson | Niagara Hudson | Noma Elec (a40¢) | Pacific Eastern__. 2 | Penn P&L pf (7) 5% | Premier Gold 112¢ | Pub Sve Ind pr pf 130s | Rv&Lt Sec(azsc) | Reed Roller | Shattuck Den Min | Shawinigan Wat | Sonotone (asc) | Stand 0i1 O (a25¢) THE EVENING NEW YORK CURB MARKET Stock and Sales— Diyidend Rate. Add 00. High. Low. Close Int! Hydro Elec System ev pf 2 10% 10% 10% ™ Tw % 3 3% Intl Metals Ina A_ 50s intl Mining war_. 3% Intl Petro (t13%4). 85% 36 9% 1% % 6% 26% 20 Int] Uti] war new. Intl Vitamin t40c. Interstate Power (Del) pt = Irving Atr Ch (1) Ital Superpwr(A) Jersey Central P&L () ... Kans City P 8 vto Kirby Pet (20c) Kirk L Gold (a3c) Lake Shore M (4). Lakey Fy & Mach_ Lehigh C&N(30¢c) Leonard Ol Lion O] & Ref Lone-Star Gas 40c Long Island Light Long IsLtpf AT 20s Long Isl Lt pf B__ 258 Loudon Pk n 160c. 5 La Land (40c) __. 13 Lynch Corp (2)... 1 McCord Rad (B) 9 McWms Dredg(4) 100s Mangel Stores pf. 30s Masonite Corp..__260s Massey-Harris Mercantile Stores. Merch & Mfrs(A Merritt Chap & 8. Mich Gas & ONl __ Michigan Sugar _ Midl St Pet-vtc A. Middle States Petrol vte (B) Molybdenum Corp Montreal H Lt & Pwr (1%) Monroe Loan Society (A) ase Moore Dist (150¢) Mount Prod (60c) Mueller Brass 80c Nat Auto Fib(+1)_ Nat Bella Hess _ Nat Bd & Sh (11)_ Nat Fuel Gas (1) Nat Gypsum (A)- Nat Investors Nat Invest war__. Nat Rubber Mach Nat Service - Nat Sugar NJ @) Natl Transit(75¢) 30s 2 43 1 3 5 2 3 5 1 8 [T PRI S e O 2010 e T N Nev-Cal Elec .. | New Brad O al0c N J Zine (12) .. New Mex&ArizLd Y Merch (12) __ N Y Shipbldg __ N Y Water Svepf 20s Niag Hud Pwr 51 18 5 6 1 8 50s 2 Pwr (A) war Pwr (B) war___ Niagara Shares (Md) B (a10c) | 13% 6 41 54% T 13% 6 North Am L & P North AmL&P of North Pipe L(30¢) Northern States Power (A) = N WEng ( ) I Novadel Ag (2) . Ohfo Pwr pf (6) .. Okla Nat Gas Co. Oldetyme Distil__ 44 541 T 4 541 % 8 30% 2 26% 2 37 108114 1 12% i1 6% 43 30% 301 26% 263 37% 3T 114 114 124 124 6% 6% 4% PacificG& E 1st of (1%) Pac Tin spec (12) Pan-Am Afr (1).. 2 55 PantepecOfl . ._. 118 5% Pennroad (b20c) 194 5% Penn P&L pf (6). 208106 oOlllO"- Pepperell Mfz(3) 100s Phila Co (80c) . Phillips Packing_. Phoentx Secur Ple Bakeries(60¢c) Pierce Governor. Ploneer Gold Mines Ltd (80c) Pitney Bowes PM (3%)._____ Ppittsb'gh Forging Pittsb’gh P G(12) Potrero Sugar __ Powdrell & Alex 11 321 50s 37 105% 106 110 110% 2 24 17 12% 6% 13% 1 : e~ 8% | 8t 9y 120 8% | 91 120 5% 813 813 21 214 | 2715 29% | 57's 573 6 6y | Pub Sve Lnd pf___ 170s 584 Pub Ut Sec pr pf 7 Puzet Sound Pwr & Lt 6 of 830s 41% 404 Quaker Oats pf(6) 105147 147 Quetec Power (1) 16 204 250s 10% 147 16 | 20! 258 2| 3 Bitnew (180c) 2 Retter-Foster 3 Reliable Strsa2ic Re:nolds Invest Richfield Oil of Calif pf (d) Root Pet'm(a25¢) - Rossta Intl Corp Royal Typewriter Russek 5th Av(1). Rustiess It & Stl. Saf Car 0&L (4)_ St Antnhony Gold 6 St Regis Paper .. 26 St Regts Paper pf 680s alt Creek P(80c) Schiff (The)Co(2). Sepal Lock &H.___ Selected Indu Seton Leather 23 % 4 17 2 3 15 1 1 2 0 1 & Power (60c)_. 4 Sherwin-Will'ms of Canada -- 508 Singer Mfg Ltd rcts (a 28 4-5¢) 4 1 6 - 2% Southn Calit Ba DI (C) (1%) Southn ColoPw A 1 Southn P L (30c) 1 Sw Penn P L (4)_ 100s Spencer Chain Stores (60c) Stana O11 Ky (\» 2T 6 4% 48 3 10 16 6 Stan1 P& L (B) .. 2 Stand P& Lpf .__ 50s tand S{1&L (ale) 1 Sterling Br(alte) 7 Stetson (J B) 12568 Stroock & Co aT5e UOI Stutz Motor Sunray Ofl. Sunshine Min (2). Swiss Oil (t20e).. Taggart Corp Talcott (J) 5 %’7’ part pf ( Tampa Elec ( ) Tasteyeast(Del)A Taylor Dist (b5)_. Technicolor inc _ Teck Hughes t40c. Tenn Products . ._ Texas Guif Prod.- Texon O & L (60c) Thermoid Co pf . lSOI Tishman R&Con. | Tob Prod Ex(10c) 5 Todd Shipyard (2)100s Trans-Lux Daylite Pie Sn (20¢) .. Tri-Contl C war. . Tubize Chatillion. Tubize Chatl (A)_ Tung-Sol L.amp n Twin Coach(a20c) 1 11 | the increase in purchasing power of | | the public at large. | heed to these reports. | a less than seasonal decline in freight | Union Gas ot Canada (a10c) Unit Air war. Unit Corp war.._. Unit Gas Corp..... Unit GasC war___ Unit Gas Corp pf.. Unit Lt & Pw (A). Unit Lt & Pw (B) Unit Lt & Pw of .. Unit Milk P a50c.. lZSl United Molasses Ltd (a13 2-5¢) 1 United Shipyds, B 1 Unit Shoe M t23% 100s U 8 Foil(B)(60c). 19 US& Intl Secur.. 4 U S Linesof_ U S Stores Unit Storet ‘Jnit Wall Paper._. Univ Consol Oil Univ Insurance._. Utah Power & Lt of (32.331-3)__. UtiLPwr & Lt Otll Pwr & Lt nt. Utility Equitie Utility & Inds Utility & Indu 6 8 2 4 5 1 16 45 2 2% 1 112‘( ll’-’% 112% 47 84 2 9% 6€5% 16 65% 16 STAR, WASHINGTON, STOCKS EXEGUTE BRISK TURNABOUT March Up to Highest Point Since July, 1931, at Close of Week. BY THOMAS E. FLANAGAN, Associated Press Financial Writer, NEW YORK, July 13.—The stock market executed a smart turnabout last week wnd marched up to the highest level since July, 1931. Although much bullish tinder had been lying around, it took the sparks of feverish grain and cotton specula- tion to kindle enthusiasm for equities. Early in the week shares had come under the cloud of tne threat of a sharp struggle between steel workers and employers. The utilities, bol- stered by recent better-than-seasonal gains in power production, were the only major group to resist pressure. At the half-way mark two develop- ments combined to stimulate buying of stocks. A sharp split within the ranks of labor over the steel question was seen in Wall Street circles as les- sening, momentarily at least, strike fears. % Commodities Boom. Meanwhile crop-withering drought brought a boom to grains, while cot- ton shot forward on publication of a smaller than expected Government acreage report. The buying which followed produced new highs, some of them for six years or so, to such representative issues as | Chrysler, Coca-Cola, Du Pont, Union Carbide, Westinghouse Electric, Allled Stores, Consolidated Edison, Pere Mar- quette, Commercial Credit and Electric Power & Light. Of the 20 most active shares for the week, utilitles were in the majority. The advance was broad, however, and at the close gains of fractions to 4 or so points for the week were chalked up by General Motors at 697, Con- | solidated Edison at 41%, U. S. Steel at 6215, Alleghany Corp. at 4%;, Ana- conda at 3634, American Water Works at 25, Radio at 11% and Socony- Vacuum at 14%5. Farm Trade Watched. Occupying an important part of stock market calculations was the| question of whether farm purchasing | power would be impaired by the rav- | ages of drought. That farm equip- ment issues, mail order shares and some rails found the going hard at| times reflected fears in market quar- | ters of less buying energy in the stricken areas. As a partial offset to such misgivings, however, were current Wall Street esti- mates pointing to increased second | quarter earnings soon to be reported. | Financial quarters noted a revival of interest in oil issues. On this score they pointed to predictions in some quarters that earnings of petroleum | companies would be the best in five | years or longer. Meanwhile heavy| | consumption of gasoline led to pre- | dictions of crude oil price advances. Sharp upturns in June sales of chain | stores bore witness both to the spend- | | ing of bonus money by veterans and Store shares gave | Carrier Equities Gain. Carrier equities had the benefit of car loadings and as the week came to a close moved along at & good clip. Measured by the Associated Press | average of 60 stocks, the market rose 1.2 to 65 Industrials were up 1.1 to 87.0, rails 1.2 to 36.3 and utilities gained 1.5 to 50.8. L The week's volume, 6,528,180 was the best since the week ended May 2. | accentuated. CHICAGO LIVE STOCK. i CHICAGO, July 13 (#).—With cat- | tle and hog receipts, accelerated by | | the drought and soaring corn prices, rapidly reaching the flood stage, live stock values broke rather sharply again today. Hogs lost 15 to 25 cents, top declin- | | ing to $10.50. Fat lambs were 25 to 50 cents lower, and fed steers and year- lings were weak to 25 cents off, al- though light heifer and mixed year- lings grading good and better sold strong to 25 cents higher. The early steer top was $8.50. The hog and cattle runs were below advance estimates, but, nevertheless, | were burdening to the trade, consid- ering the sharply contracted consumer demand coincident with the hot weather. Packers were attempting to move beef and perk at steady whole- sale prices today, there being little change in the quotations. Steer car- casses sold for $9 to $14.50 per hun- dredweight. The markets were weakened consid- erably by the live stock surplus, which flowed to slaughter during last week's extended heat wave. At the same time, trade expectations that rising corn prices would stimulate further liquidation had more or less of a bear- ish effect on prices. Lack of water has been the primary cause of much liquidation, but the shortage of feed also is an impelling factor. The mar- kets in the Northwest, particularly at St. Paul and Sioux City, have been glutted with drought stock, according to reports here. Local cattle receipts are running ‘the largest since October. The bulk of desirable native lambs sold for $9.75 to $10.50 in today’s trade. HIGH INSURANCE MARK SET DURING HALF YEAR Sidney Simon of the Washington branch of the New York Life Insur- ance Co. made an exceptional record in writing new insurance during the first half of 1936, it was announced today. During the six month# he wrote 86 applications for insurance policies totaling $272,000. By leading | o the other agents in his office in new business so far this year he has already qualified for membership in the Top Club, which will meet at White Sul- phur Springs in September. ‘Stock and Sates— tvidend Rate Add 00. Venezuela Mex O. Westn Alr Ex(n). Western Auto Supply (3) A___ West Tabulating & Sta vte (1) Williams 0i1-0 Matic (a26c). Wilson-Jones (2). 1 32% 32% 32% Wright Harg t406 3 l!fi !% Blfi ite “in quarterly uor"l.l! -annual DI’IIII!I 'AII- nflfl rate—plus extrs. IAcc uhml di jends. aPaid this 8 13% 18 13 D. C, MONDAY, JULY 13, 1936. Index of the Cost of Living in the United States 1914-1936 ost of Living Rose 105.7 Per Cent Between 1914 and 1920 1B17°89 0 A7 B U B %W B D NI U. S. Bureau of Labor Statistics 1914 °15 Source of Original Data: . The Decline Between 1929 and 1933 Amounted to B U B B i Figures What They Mean. BY A. A. PATTON, Associated Press Statistician, NEW YORK, July 13.—Although most nations have abandoned the old gold standard, the world is absorbing the precious metal in the biggest vol- ume ever known. Africa’s Rand—World's No. 1 pro- ducer—had the largest June save one in its history, with the total for six months gaining 5.3 per cent over last year. World gold production for the first five months this year was the best on record at approximately $425,- | 000,000. Increased Purchasing Power. Back of the enormous expansion in gold mined is its sharply increased pur- chasing power in terms of other com- modities. In 1929, when the gold standard prevailed in most countries, | its price was fixed automatically by | the exchange value of currency. In the United States, for example, an ounce of gold was worth $20.67 in currency at the Treasury. You could | either sell gold to the Treasury or buy it, in any amount. Prices for ordinary commodities— | tin, sugar, hides, etc.—are set in the market place by demand, supply and tariffs. The onslaught of depression drove these prices down 40, 50, 60 per cent, as the case might be. But the holder of gold could still get $20.67 an ounce for his gold, turn around and buy con- siderably more wheat, cotton, rubber or whatever than he could in 1929 for | | the same amount of the yellow metal. When the world tumbled from the | old gold standard, this disparity was | The United States Treasury, for instance, bid up the price of gold and now pays $35 an | ounce, ‘The metal's premium was bonanza | to the mines. World output has stepped up 50 per cent since 1929, and its value. measured in the devaluated currencies of the world, is at least 150 | per cent. | Largest Beneficiary. ___ ___ | largest beneficiary is South ‘The | Africa and its Rand, which turn out more than one-third of the yellow metal. Soviet Russia ranks second with 18 per cent of output; United | States has 12 per cent and Canada 11. The most impressive expansion of production during the depression was Russia's, up almost sixfold. United | States and Canadian output increased by about half. The Rand’s was prac- | tically unchanged. Where has this huge increase in production gone? Almost half has been gobbled up by the central banks 'or the world. Equalization or stabili- zation funds operated by England ancl[ the United States have absorbed a large slice of the remainder. Hoard- ing took a big toll in the agzregate, especially in the first quarter of 1936. . Conditions Upset. The jittery flight of capital from country to country, upset international trade conditions, currency devaluation | and lack of confidence have made the | gold holdings of some nations top- heavy and others too small. The world gold supply—excluding | secret exchange funds— is distributed roughly as follows: United States, 46 per cent; France, 17 per cent; Eng- land, 7 per cent; Russia, 4 per cent; Spain, 3 per cent; Belgium, 3 per cent. All the other countries divide the remaining 20 per cent, including such powers as Germany, Japan and Italy. The effect of this huge mass of gold on prices is expected to push them up. Cheap world credit, armament pro- grams, the low starting level of prices (below the lowest point ever touched between 1800 and 1930) and the slow- ing down in the increase of popula- tion growth point to the “likelihood of a continued rise in commodity prices,” the latest Federal Reserve Bul- letin states. e~ NEW YORK BANK STOCKS NEW YORK, July 13 (P.—O - Sounter market bank and trust Companics: gpening bid : First Nmnn Eudlc” o ao05 A, (1.80 Continental (.80) ~. orn Exchange (3) Empire (1) _ Guaranty (12) Irving (.60) Lawyers Trust Manufacturers (I New York Trust (5) Title Guaranty & Trust. CHICAGO PRODUCE. CHICAGO, July 13 um_—Poultry, live, “han Leghorn’ he’nh facys gen S poaas, wnn' 5., 14%: Plymouth sn A Rock Spri) 26: hcolorefl 2] P]'m@ll!h | distinctly CORPORATION TAX IS MARKET FACTOR Directors Expected to Order Larger Part of Profits for Dividends. BY GEORGE T. HUGHES. NEW YORK, July 13.—It is slowly | becoming evident that the provisions of the revenue act of 1936, particu- larly those affecting the tax on profits | not distributed as dividends, is going | to be an important factor in the ! stock market. The long-term economic effect may | be injurious to both the corporations and their stockholders, but that view is not likely to be reflected in the market for some time to come. It | can hardly be doubted that, in order to cut down tax liability, directors will distribute a larger proportion of their earnings than they would otherwise consider conservative. ‘The speculator, as distinguished | from the investor, confident in his | ability to protect himself by shifting | his interest as eircumstances dictate, will buy stocks on which there is good | prospect of larger dividends regardless ‘ of the ultimate outcome. Rail Issues Respond. Of course, it is the plain intent of the law to force out dividends which can then be taxed as income to the | recipients. It is probably the result of this situation that has brought about the sharp advance in two lead- | ing raflroad issues this week—Norfolk | | & Western and Chesapeake & Ohio. | Norfolk & Western has been climbing steadily until now it is| within striking distance of its 1929 top. Norfolk & Western is earning at a rate which would permit of a substantial increase in the dividend. | The same is true in less degree of | Chesapeake & Ohio, although in this | case an additional motive for a higher rate is the benefit that would accrue | [to the associated Van Sweringen companie& | It would be gratifying to say that these two examples indicate a more ! confident feeling toward the rail- road outlook generally, but that is| hardly the case. It must be remem- | bered that the two roads in question | are predominantly carriers of soft coal and their traffic is not repre-| sentative of the railroads as a whole. Suggestion Praised. | From another quarter comes a encouraging suggestion. Speaking before the conference at | the University of Virginia Thursday, Lovell H. Parker indicated that the administration was considering the abolition of taxes on capital gains. Nothing could be more constructive in the way of tax reform except a | similar abolition of tax-exempt secu- rities. If these two changes can be made | in our tax system we should approach something like a logical arrangement. ' Capital gains are not income and should not be treated as such. They should not be taxed nor should lus“si on sale of capital assets be allowed | as deductions. As it stands now, | all the gains are taxed and only a' small proportion of the losses are al- | lowed. Every Secretary of the Treasury in recent times, regardless of politics, has urged abolition of the issuance of tax-exempt obligations by the Federal Government, as well as States | and their subdivisions. No progress | has been made for the simple reason that States and municipalities are re- luctant to give up their present ad- vantage in the way of floating new bonds. (Coryright. 1936, by the North American Newspaper Alliance Inc.) B U. S. TREASURY POSITION. By the Assoctated Press. The position of the Freasury JuH Receipts, $16,623,100.35; itures. 106.20; net hnllnce ' Tecelpts for the mi 3,085.25: expenditures g including $50.010. emergency expenditures. Exc penditures, Sl"fl 544,494 61 Orol! deb!. 33,557,175,044 a_decrease of $23.- 985.050.50 under_the previous day. Gold assets. $10.6: 5.854.73. Teceints Tor July 13 date last year), S17, ,993. net ce, $1.- 8. Customs receipts for the Recelpu lor the fiscal year. $121.651.- ditures. $476,961,359. dudln: !"lDl\)G.GlO 05 of emerg: nditures: excess of expenditures, & sau- e] !2!7021 03 30,1204 i lo] 6: barebacks, 14al 16: hen turkeys, 16. Deavy old ducks, 1214 hite ducks. 11 5 !flm( geese, 15; old. sts._loc: I R O - Flood Causes Water Famine. LAS VEGAS, N. Mex. (#).—The 250 residents of Bunkerville, 70 miles southeast of here, appealed for Fed- eral aid to save the little farming community from a water famine caused by three cloudbursts. Torrential rains damaged homes, crops, flood-control basins and the canal carrying the domestic water supply. ult: PHII.ADELPEIA PRODUCE. July 13 (®.—Live 1s: Plymouth Mkfi fancy, 22 r;.«l-m. 20RS1 White Leshorns: RoskaLon B ot 14 svn T8, mllth n cross-breds. Riiode pringers, 18821 Leghorn brollers, l; d Cn e ; old, 12; orlw fresh-killed chickens, all dry-picked and. 16. Whi mixed ultry — Fowl Western. In, boxes. 18% Hetiona: 3 estorn, T6u Carloadings. NEW YORK, July 13 (#).—Revenue freight carloadings on railroads re- porting today for week ended July 11, included: Week of Previous Last July 11, week. Aitiore & oho 48001 43000 #i% First National Pictures Holders Vote to Dissolve Bv t8 Associated Press. WILMINGTON, Del, July 13.— Stockholders of First National Pic- tures, Inc., voted to dissolve the cor- poration and distribute its assets among the stockholders at a special meeting. The concern is a subsidiary of Warner Bros. Pictures, Inc. ‘The action was in line with the new tax law, which provides for a tax-free consolidation and is intended to ef- | fect substantial economy in the con- | duct of the business of the two com- panies. NEW YORK PRODUCE. NEW YORK. July 13 (# —Egi irregular. Mixed colors. selections from fresh receipts. standards and commercial standards. 24's firsts, 23: mediums. 40 pounds, 2112: dif- | ties. 'No.'1. 42 pounds, 21a21%: average | checks. 198163, 20.737 Creame: 41405, extra ( . 333,a34: firsts (80-01 ¥ Jtry wbout steady By freigh 219: roosters. 15: turkeys. 13 ducks (all sections). 3; chickens broilers unquoted nd ag Special packs or | *x% A—I5 WAGE ‘AVERAGES PROVE CONFUSING Broker Points Out That Labor Data Must Be Viewed Doubtfully. Srectal Dispateh to The Star | NEW YORK, July 13.—“When 1 | read all this discussion of ‘average wages’ in the iron and steel industry | it gives me an uncomfortable feeling |in the stomach,” says a broker who | works a good bit with figures. “I | cannot but recall what my old ine | structor in statistics was always harpe | ing on—‘an average expresses some- thing that does not exist’ he used to iterate and reiterate. | “And yet,” the broker continued, “few people ever stop to think that an average is purely an imaginary quantity. How true that is was brought home to me once in connec- tion with a small manufacturing plant in which I had an equity interest. The question of wages came up and the plant executives insisted that they were paying around the average for the industry. They figured out an average of 46.8 cents an hour, and that made it look as if few workers had much ground for complaint. “However, I recalled the saying of | my old mentor—‘an average expresses | something that does not exist'—and | T asked for the real facts concealed | by that average. As I remember it, I learned that 500 workers were gete | ting 30 cents an hour, and 300 were getting 75 cents an hour. Now the 300 were well satisfied, but what wabou! the 62!2 per cent of the work- | ers who were getting only 30 cents |an hour. A little further figuring showed that those 622 per cent of the employes were getting nearly 36 per cent less than the boasted ‘average wage.’ “So I say,” he continued, “when you read claims and counterclaims |in this steel industry labor dispute, take ‘average wages' with a grain of salt. Recently I read a quotation from the Atchison Globe which fits the case so well that I am having an enlarged reproduction of it framed { for my office. This is what it says: “‘There are three sides to every o | question. Your side, my side and the | truth.” (Copyright, 1936.) Farm Workers Hit. Social unrest in Spain has specially affected the agricultural districts, the | number of unemployed farm workers being particularly high. 729 15th Winthrop, Mitchell & Co. 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