Evening Star Newspaper, April 21, 1940, Page 25

FINANCIAL. Profits Up Sharply For Half Year $33,893 Net Contrasts With $280,411 Loss Shown Year Ago By EDWARD C. STONE. In one of the first semi-annual reports ever issued by the Mergen- thaler Linotype Co., President Jo- seph T. Mackey yesterday reported 8 surprising upturn in earnings, which will interest thousands of stockholders, inclding the very large number in Washingtqn. The report disclosed business sagain in the black, net operating profits in the six months ended March 31 amounting to $33,893.60, in comparison with a loss of $280,- . 41129 in the corresponding six ' months a year ago. That means a net improvement, before deprecia- tion, of $314,304.89. Other non-manufacturing income during the six months totaled $128,- 249.70 against $143,787.36, making a total profit, before depreciation, of $162,243.30 as compared with $136,~ 623.93 last year. Depreciation this year totaled the substantial sum of $152,961.81 compared with $166,689.16 a year ago. After deduction of depreciation, the Mergenthaler company reported a net income of $9,281.49 against a loss of $30331309 in the like six months a year ago. The sudden up- swing in earnings makes the outlook for the second half year still brighter. Last year business was much better in the last half year than in the first half. This leads to the assumption that dividends may be resumed before the end of the company’s fiscal year on Sep- tember 30. Based on the last annual report, Mergenthaler stock has been sell- ing around 15!; and lower on the ‘Washington Stock Exchange. The stock sold up to 1575 last Friday and closed the week with 15% bed, of- fered at 15%. * Barker Made Hotel Chairman. ‘Willard G. Barker, president, Mor- ris Plan Bank, has been named chairman of the Hotel Committee for theJune con- vention of the District Bankers’ Association at Hot Springs, President Ord Preston an- nounced yester- ] . George M. Fisher, vice president and treasurer, Wash- ington Loan & Trust Co., has been appointed vice chairman. The other mem- bers include: Frank P. Harman, jr., assistant vice president Hamilton National; Richard E. Harris, assistant treas- urer American Security & Trust Co.; W. Frank D. Herron, vice presi- dent Union Trust Co.; Fred McKee, Willard G. Barker vice president Security Savings & | Commercial; James B. Skinner, vice president Liberty National; Horace F. Btokes, cashier National Metro- politan, and George O. Vass, vice president and cashier Riggs Na- tional. National Councilor Named. Charles J. Zimmerman, president of the National Association of Life Underwriters, has appointed Thomas P. Morgan, jr., who is manager of the Washing- ton office of the Mutual Life In- surance’ Co. of New York, as national council- or to represent the assoclation at the 28th an- nual meeting of the United States Chamber of Commerce, it was announced 6 here yesterday. Thomas P. Morgan, Jr. Under the by- laws, the president of the association is the national councilor, but as Mr. Zimmerman cannot be here, he asked Mr. Morgan to serve in that eapacity. A previous appointment as one of the delegates is automati- cally canceled. Mr. Morgan is a past president of the District of Columbia Life Un- derwriters’ Association. Upham Safe Deposit Speaker. C. B. Upham, vice deputy control- ler of the currency, will be the guest speaker at the April dinner meeting at the Lee House of the safe deposit section of the District Bankers’ Association. The meeting takes place next Wednesday night, be- ginning at 6:30. ¥ Ord Preston, president of the Dis- frict Bankers’ Association; A. M. McLachlen, T. Stanley Holland and John A. Reilly, vice presidents; Al- bert S. Gatley, treasurer; Frank J. Hogan, general counsel, and Donald ‘W. Larson, secretary, will be present. Advisory Council to Meet. General economic conditions, trends in mortgage lending, matters affecting the Federal Home Loan Bank System and operations of the | Feb. Federal Savings & Loan Corp. will be considered at the semi-annual meet- Ing of the Federal Savings and Loan Adyisory Council here tomorrow and Tuesday. The Winston-Salem dis- trict, which takes in this area, will be represented by George W. West of Atlanta. W. Waverly Taylor of ‘Washington is also a member of the council. Insurance Men Honored. ‘The Aetna Life Insurance Co. of Hartford announced yesterday that H. Cochran Fisher and Freeman N. Stricklin of the P. D. Sleeper agency in Washington are among the company’s leading producers in the United States. Mr. Fisher 1s the first and Mr. Stricklin the third man in the company to qualify for the last 12 consecutive years for at- tendance at the yearly conference, attendance being pased on produc- tion. The next conference will be (See STONE, Page B-11.) Jones Investment Firm Adds Four Staff Men Robert C. Jones & Co., investment bankers, announced yesterday that Barry Townsend has resigned from the trust department of the Wash- ington Loan & Trust Co. to become associated with the firm. Mr. Town- send entered the bal fleld here some years ago on leaving Amherst. Mr. Jones also announced that the following men have re become associated with the firm’s sales staff: James Parks, Bruce Brown and Charles Slaughrter. Home Building Rises Slightly Ahead of Preceding Month By DONALD B. HADLEY. Public and private construction in the Washington Metropolitan Area for March declined to $5,899,- 607, compared with $10,739,713 in the preceding month, and was well be- low $8,440,691 recorded in March, 1639, the Labor Department reported last night. All of the decline from February levels was registered by non-resi- dential activity and additions, alter~ ations and repairs. March residen- tial building was valued at $4,758,149, slightly ahead of $4,729,557 in the preceding month, but far behind $6,643,100 in the same 1939 month. Accommodations were provided for 1070 families in the latest month, compared with 1,242 in the preceding month and 1,581 in March, 1939. Non-residential activity in March was valued at $765417, against $5,419,752 in the preceding month and $1,114,430 a year ago. Addi- tions, alterations and repairs totaled $376,041, against $590,404 in the pre- vious month and $683,161 a year ago. Total construction, residential building and the number of families provided for in March of various years follow: Fam- Total Residential, ilies. 194, 08,260 623 6643100 1:581 4,758.149 1,070 Quarter’s Volume Down. The smaller March totals, in ad- dition to an extremely quiet Jan- uary, caused the first-quarter con- struction volume to fall far behind the same 1939 period, although, with that exception, Wwas the highest for the period on regord. Total construction worth $19,632,- 219 during the quarter compared with $24,205,353 a year ago. Resi- dential building valued at $11,424,711 compared with $13,561370 a year ago, while 2,845 families were pro- vided for against 3,224 in the 1939 period. Non-residential activity in the quarter was down to $6,907.129 against $8,835,791 a year ago, while additions, alterations and repairs worth $1,300,379 compared with $1,- 808,192 a year ago. Total construction, residential ac- tivity and families provided for in the first quarter of various years follow: 1935 _ 1938 19 19 Total. = Residential. Families. 834 4, 65 1.023 04,129 3.561.370 3224 11424711 2,845 Slackening Foreseen. Slackening in building activity for the first quarter of 1940 was widely predicted at the start of the new year and is viewed by many real estate leaders and builders as a healthy aftermath to the $109,457,- 715 construction record set in 1939. During that busy 12-month period, accommogations for 13,133 families were built at a cost of $55,505,162. Moreover, the four years prior to 1939 already had piled up an im- posing construction volume. From the start of 1935 through March, 1940, public and private con- struction in the Washington Metro- politan Area totaled $416,631,839. This included residential building providing for 53,637 families at a cost of $220,786,016. Fairfax Scores Gains. Among various sections of the area during March, the metropolitan part of Fairfax County furnished a sharp contrast to the general trend by reg- istering sharp gains over the preced- ing month and a year ago all along the line. Building in the metropolitan por- tion of Montgomery County was ahead of the preceding month, but remained slightly behind a year ago. In metropolitan Prince Georges, total construction was behind both the preceding month and a year ago, while residential activity climbed ahead of the preceding month, but was slightly below March, 1939, Alexandria building in March was above the preceding month, but far behind a year ago. Arlington County and District of |1 Columbia construction both lagged 183 behind February a year ago in all classifications. At a number of points in the latest report, increases in the valuation of residential building were accom- panied by declines in the number of families provided for, indicating fewer apartment projects and a larger proportion of detached or semi-detached dwellings. Results Summarized. Total construction, residential building and the number of families provided for in March, the preced- ing month and March, 1939, appear below for the various sections: DISTRICT OF COLUMBIA, Fam- Residential. “ilies. $2,101,400 §fi 97 eb.. - 77334007 2381 March, 1939 4&(0?.08; 3&32»3% MONTGOMERY. March.1640. sL185.484 81120499 3210 March, 1939° 1,270,728 1,165, 21 PRINCE GEORGES, March, 1839° 632,623 346,300 ALEXANDRIA. $332.880 $275.425 259,721 ne.éu 603750 426,800 ARLINGTON. $854,050 $732,051 1..1»3.318 1’.176. 08 1521033 17145,760 FAIRFAX. 111 4 bt Mareh, 1940 Feb, 4 X 42 March, 1939 49 107 i 224 March, 1940 Fel 1940 _ March, 1939 Boaue- St s March, 1939 94,625 78,000 Quarter’s Results Shown. All sections except Fairfax reg- istered declines from a year ago in the first three months of 1940. The only other exception was in the District of Columbia, where, de- spite a lower valuation of residential building, there was an increase in the number of families provided for, due mainly to the inclusion of & low-rent housing project under the slum-clearance program in Feb- ruary. Totals for the first quarters of 1040 and 1939 in the different sec- tions compare as follows: THREE MONTHS. 1940. 46 2 Total. ~ Residential. ., S1308230 x.s,a'g;mo Pr.Georges 1438.000 697438 Alexandria 682,399 Arlington ’.602387 Fairfax 466,650 D. c. 2,207,900 412,300 Residential. 35985050 2,326,459 D. cC Montgom. 850 1 01, THE SUNDAY STAR, WASHINGTON, D. . APRIL 21, 18940 —PART ONE. Mergenthaler Reporis Metropolitan Construction Lags Behind Year Ago in Both March and Quarter g METROPOLITAN Dollars 2z of AREA BUILDING (Total and Residential Activity by Months) TP T PEE F public and private construction (solid line) and residential building (dotted line) in the Washington Metropolitan Area by months since the start of 1938. Bureau of Labor Statistics. District of Columbia for the first 8 |quarter was greater than for the 7 adjoining sections combined, the value of residential building was greater outside the District’s limits. Slightly more families were pro- vided for in the District. An Amazing Record. Although accounting for only about half of the metropolitan home building, the District by itself has made an amazing record in resi- dential construction compared with other cities of similar size. From the start of 1936 through the first 1940 month, District home building provides for 22,509 families. Family totals for other cities in the same period: 6,578 in Boston, 3,242 in Buffalo, 4,903 in Pittsburgh, 8,537 in Cincinnati, 4,049 in Milwaukee, 4,453 in Mjnneapolis, 8,312 in Balti- more, 5821 in New Orleans and 11,599 in San Francisco. In January this year, the con- trast continued with District of Co- lumbia providing for 300 families against 13 in Boston, 9 in Buffalo, 28 in Pittsburgh, 47 in Cincinnati, 23 in Milwaukee, 44 in Minneapolis, 58 in Baltimore, 924 in New Orleans and 299 in San Francisco. Real Estate Activity Up. Real estate activity in the first quarter showed increases over the same 1939 period, while foreclosures registered a decline, according to a report from Charles Rush, secre- tary of the Washington Real Estate Board. Deeds of trust in the quarter to- taled 3,038 with a valuation of $21,~ 602,556, compared with 2,994 and $20,470,864 a year ago. The number was the highest since 1929 and the valuation was the highest since 1931. Foreclosures in the quarter totaled 83, against 94 in the 1939 period and equalled the low mark of the same 1937 months. Deeds totaling 2,852 were ahead of 2781 in the opening 1939 quarter, but failed to equal the same periods of 1936, 1937 or 1938. However, they were close to their 1929 mark. March Totals Lag. March by itself failed to make as favorable a showing. Deeds were at their lowest mark for that month since 1935. They were one ahead of the 1929 month. Foreclosures stood at the lowest level for March on record. Both the number and valuation of deeds of trust were at their low marks for the month since 1936. Deeds, foreclosures and deeds of trust with their valuation in the first three months and in March of various years follow: THREE MONTHS. Poreclos- —Deeds of Trust— Deeds. ures. NuniBer. Valuation. 10 3,880 7,876 B SRITRRIR3BS Bo2R3353 mo30ls 23322332 &2 It is based on data from the Bond Prices Advance On Favorable News From Abroad Italian Issues Jump; Demand for Junior Corporates Improves By the Associated Press. 5 NEW YORK, April 20.—Sensing favorable implications in the for- eign news, the bond market moved ahead bronudly today. Italian dollar loans showed a burst of strength on French Premier Reynaud’s declaration in Paris that friendly conversations were proceed- ing with Italy and Spain looking to- ward an entente in the Mediter- ranean. > Italian government 7s shot up 4% points to 55. Rome 6%s made a similar gain and the Milan 6l%s rose 3%. Italian Public Utility 7s clumbed 51;. Danish, Belgium and Canadian issues also improved. Ger- man obligations weakened as did Norway 6s and New South Wales 5s. Aside from the cable news, there were some industrial reports point- ing to a faster business tempo in the line of spring revival. This helped to broaden support for many domestic bonds in the so-called speculative class. Low yield cor- porates were steady, but U. S. Gov- ernments again slipped back, clos- ing with losses running o 13/32ds on small volume. Up a point or more at the end were Wabash first 5s at 44%, Puerto Rican American Tobacco stamped 6s of ‘42 at 83, International Tele- phone 5s at 38, International Hydro Electric 6s at 68, and Great North- ern “G” 4s at 101%. Closing fractions to a point lower were American & Foreign Power 5s at 65, Illinois Central 4%s at 423, and Walworth 4s at 67. Transactions totaled $3,078,700 | face value, against $3,256,000 the previous Saturday. F. H. A. Activity Indicates Home Building Boom By the Associated Press. New evidence of a coming home- buiilding boom which might set a 12-year record was reported yester- day by Stewart McDonald, Federal Housing Administrator, He said all records for F. H. A. home financing were broken during the week ended April 13, for the fourth successive week, as construc- tion was started on 3,700 new units under F. H. A. inspection. For the first time, too, applica- tions for F. H. A. mortgage insur- ance on new homes exceeded 5,000, t— | breaking past records for the sev- DODD 3E858 Building and Loan Group To Hear Conclave Plans The monthly meeting of the ex- ecutive council, District of Co- lumbia Building and Loan League, Tuesday noon at the Raleigh Hotel will be featured by the report of Robert E. Buckley on the South- eastern group conference slated for May 6-7-8. Mr. Buckley, a member of the di- rectorate of the Southeastern divi- sion, United States Savings and Loan League, stated yesterday that 400 building and loan executives from the 11 States and the District of Columbia will attend the Louis- ville meeting. Led by William N. Payne, jr., president of the local league, the ‘Washington party will include two official delegates from Washington, Martin A. Cook, secretary of the Enterprise Building Association, and F. Willson Camp, secretary of the District Building and Loan Associa- Others in the delegation are Wil- lUam H. ‘Dyer, assistant secretary, ; W. H. Branz of the American; Robert E. Buckley, presi~ dent, National Permanent, and Samuel Borden of Baltimore. Retail Auto Sales Soar Above Year Ago By the Associated Press. DETROIT, April 20—~The Auto- 483 | mobile Manufacturers’ Association today that March retail 07 | reported sales of new passenger cars and 04 trucks totaled 398,365 units, an in- crease of 20 per cent over the same ;| month & year ago. Retail deliveries for January were 44 285438 and for February 284,013. The total of 967,816 for the first compares with 750,404 dur- Q' “While total construction in *. mmeommflmpeflnhoflm. enth successive week, while mort- gages selected for appraisal reached %4|a peak of 6647, amounting to 2 | $29,978,000. s i Secretary Perkins reported that permit valuations for new residen- tial construction totaled one-third greater in 1939 than in the preced- ing year. The dollar volume of resi- dential construction for which per- mits were issused was $1,169,000,000, she said, higher than for any other year since 1929. March Lead Output Far Above Year Ago By the Associated Press. Stock Market Rallies Briskly at End of Gloomy Week Favorites Up Fractions To More Than $2; New Highs Set What Stecks Did. Advances Declines _. Unchanged Total issues By FREDERICK GARDNER. Associated Press Financial Writer. NEW YORK, April 20.—After seven sessions in which no progress was registered, the stock market to- day ended a rather gloomy week with a brisk rally that put favorites up fractions to more than 2 points. Specialties, including shipbuild- ing, woolen, sugar, paper and pack- ing issues, touched off the revival in the first hour. Steels and avia- tions then joined the procession in active recoveries. New highs for the year or longer were well distributed, although top marks in many cases were cut down by profit taking at the close. The upswing was attributed partly to Paris dispatches telling of French efforts to arrange a Mediterranean entente with Italy, although doubts later were expressed as to just how Rome might react to this move. War News Confusing. ‘War news generally left Wall Street as much confused as ever, but hopes for the allies seemed to have revived sufficiently to brighten buying sentiment somewhat. In ad- dition, business developments were fairly encouraging and some short covering and speculative purchasing was based on belief the market would end the stalemate on the upside. The Associated Press average of 60 stocks was up .3 of a point at 499, after being unchanged or lower in the preceding seven sessions. On the week the composite was off .7. A month ago the barometer stood at 495 and a year ago at 442. Volume expanded on the day's up- swing to 720,660 shares, compared with 495370 a week ago. It was the best Saturday's turnover since November 4. New 1940 tops were posted for New York Shipbuilding, American- Hawaiian Steamship, International Mercantile Marine, Electric Boat, International Paper, American Woolen, Armour, Wilson & Co. and Zonite. Prominent on the forward shift were U. S. Steel, Bethlehem, Glenn Martin, Douglas Aircraft, Lockheed, American Airlines, Eastern Air- lines, American Sugar Refining, South Porto Rico Sugar, Stude- baker, Westinghouse and American Telephone. Most motors, rails; oils and coppers were up small amounts. Helps to Spur Market. The outlook for heavier allied demand for ships, planes, meats and other products as the overseas con- flict widens was seen as a stimu- lating market influence. Helpful also were indications next week’s steel mill operations would advance, a continued high level of automo- bile sales and an increase in depart- ment store spending over 1939. Aluminum of America got up as much as 4 in the curb. Lesser gain- ers were Bath Iron Works, Babcock & Wilcox, Grumman Aircraft and Phoenix Securities. The turnover here was around 177,000 shares, against 110,000 last Saturday. War stocks bounded up Monday, but leaders lagged and the net aver- age result was a minor decline. Dis~ turbing war rumors, later proved unfounded, brought the sharpest selling of the week on Tuesday, with losses running to 3 or more points. Prices steadied Wednesday, but suffered another relapse Thurs- day, when aircrafts refused to re- spond to the announcement of “huge” plane orders placed by the British-French mission. A late half- hearted recovery Friday reduced ex- treme early losses but minus signs predominated at the finish, Revision of Missouri Pacific Plan Barred By the Associated Press. The Interstate Commerce Com- mission refused yesterday to modify its plan of reorganization for the Missouri Pacific Railroad and sub- sidiary companies to provide for participation of present stockholders. The road had petitioned for modi- fication of the plan to include issu- ance of warrants entitling present preferred and common stockholders | M to subscribe for common stock of the new company. In its order today the commission said, “It is evident that no equity remains to the stockholders.” Short-Term Securities Bid Als Gt 8Sou “A” Bs 1943 _ 110 Alleghany Corp Cv 5s 1944_ 82 Amer Tel & Tel 5'%s 1943 Austin & N'thw'tern 5s 1941 Cen Foundry 6s 1941 Cen R R of Georgla 5s 1942 Chicago Union Sta 45 1944 Childs Co s 1943 _ Colo Fuel NEW YORK, April 20—United| o States production of lead in March increased to 48,400 tons from 43317 in February and 40,799 in March a |18 year ago, the American Bureau of Metal Statistics said today. Stocks at the end of March in- creased to 74,692 tons from 72,658 a Pe month earlier, but were still far below the 122,035 reported at the end of March last year. March ship- & ments totaled 46,353 tons, against 39,176 in February and 40871 in March, 1939. Branch 4s 1041 Norfolk & Sou bs 1941 Pennsylvania Co 3%s 1941 102 Ouagns, Sa 1081 Balt & Studebaker Corp 65 1945 Texas & New Or Bs 1043 Union_Oil of Calif 6s 1942 Utah Power & Light 5s 1044 Warren Bros 6s 1941 Western N Y & Pa 45 1943 Weekly Financial High Lights By the Associated Press. 1—Steel production. Final three ciphers omitted in 6—Electric power produced (kw.h. AETOR I B I B LI I 13—Treasury gold stocl 14—Brokers’ loans Money and bank rates: Call money, N. Y. Stock S Ave. yield long-term Gvt. bonds__. New Yoérk Reserve Bank rate # Bank of England rate.. + Sources: 1—Am! Steel Inst. 2—Ward's. 547,179 2,466,668 $24,809,125 ollowing: zlng;n $58,662 $5,391,203 $16,388/000 $3,852,000 $6,050,000 $4,000,000 $18,631,000 $15,605,000 $479,000 $551,000 1% 229% 1% | 2% 1% 2.28% A 1% 2% 2% 4 and 5—N. Y. Stock Exchange 6—Edison Institute. 7—Am. Petroleum Inst. 8—Poor's. 9—Dun & Bradstreet. 10 and 11—Reserve member banks in 101 cities. 12, limd 14—Fed. Reserve. r—Revised. j FINANCIAL. INDUSTRIAL ACTIVITY 1936 1937 this week, as shown on the abo ated Press statisties. sharply for the second week destructive war. into new low ground. 1938 A. P. MARKET AVERAGES—Economic baremeters sagged lower Only commodities advanced, moving up Stocks and bonds were down for the second successive week and industrial activity continued to decline T %0 APRIL 1940 = <] z 1939 ve chart based on latest Associ- in response to the spread of Cotton Mill Activity Tops 1939 Despite March Decline 94.4 Per Cent Rate Compares With 99.6 For February By the Associated Press. The Census Bureau reported yes- terday that the cotton spinning in- dustry operated during March at 94.4 per cent of capacity on a two- shift, 80-hour-week basis, compared with 99.6 per cent during February this year, and 86.6 per cent during March last year. Spinning spindles in place March 31 totaled 24,959,362, of which 22,- 555,036 were active at some time during the month, compared with | 24985580 and 22,803,796 for Feb- ruary this year, and 25,827,970 and 22,472,330 for March last year. Active spindle hours for March totaled 7,920,884,543, or an average of 317 hours per spindle in place, compared with 8,266,178,276 and 331 for February this year, and 8.235,~ 588,348 and 319 for March last year. Active spindle hours and the average per spindle in place for March, by States, follow: Alabama, 635452,365 and 348; Connecticut, 130,728,081 and 249; Georgia, 1,104904,551 and 343; Maine, 182,727,078 and 267; Mas- sachusetts, 714,258,776 and 214; Mis- sissippi, 52,923,198 and 351; New Hampshire, 97,679,099 and 260; New York, 77,598,376 and 235; North Car- olina, 1,908,627,564 and 327; Rhode Island, 257972352 and 272; South Caroling, 2,122,174,156 and 380; Ten- nessee, 228,539,856 and 412; Texas, 78,478 463 and 333; Virginia, 181, 998,260 and 285; all other States, 146,822,368 and 207. New Orleans Prices. X NEW ORLEANS. April 20 (P),—Cotton futures advanced here today on week-end shorts covering and strength in securities. Closing prices were steady, 3 to 5 points net higher. Close Low 1082 10.8 h 087 989 987 9.91b Cottonseed ofl closed steady. bleachable prime, summer, yellow, 6.35b: prime. crude, 5.8715-6.00b: May. 6.51; July. 6.53b; Sep- wfl.}bne}'d 6.67b; October, 6.87b. Copper Smelters Shade Prices During Week By the Associated Press. NEW YORK, April 20.—Custom smelters and the outside market shaded the price of copper 3% cent to 11% cents a pound this week de- spite increasing evidence supplies for prompt and nearby shipment S0y were tight. The smelted quotation compared with 113% cents adhered to by pri- mary producers of the red metal. Metal dealers said a rush of buy- ing by foreign interests in the past few weeks, with most orders written for delivery within 60 days, had taken care of mos* available metal. A substantial share of the week’s export business, which totaled around 40,000 tons, according to trade estimates, will be filled with copper of domestic origin. The bargain metal offered by smelters and the outside market, in the opinion of many observers, was limited in quantity. The lower price was named apparently in or- der to spur laggerd domestic de- mand. Inquiry for lead and zinc slack- ened after the exceptional tonnage purchases in the , previous week. Lead closed at 5.10-5.15 cents a pound, New York, and zinc, 5.75 cents, East St. Louls. 404 | Earnings Improve CHICAGO, April 20 (#).—Gardner- Denver Co. today reported net profit | 2 of $227,378 for the quarter ending Msarch 31, eequal after preferred dividends to 35 cents per common schare, compared with $216,770, or 33 cents, the corresponding 1939 | period. Pere Marquette Net Sags CLEVELAND, April 20 (#)—Pere Marquette Railway today reported March net income of $5593, after all charges, a decrease of $29,586 from March, 19391 Wheat Trend Erratic As Profit Taking Follows Rise Chicago Market Closes Unchanged to Half A Cent Higher By FRANKLIN MULLIN, Associated Press Market Writer. CHICAGO, April 20.—Three cents | net gains chalked up by the wheat market this week continued to at- tract profit taking and sales tq even | |up trading accounts today, which resulted in nervous price fluctua- | tions throughout the short session. | An early slump of % cent was wiped out within the first half hour, { when prices rallied a cent to score | net overnight gains ranging up to % cent. Thereafter quotations | steadied and closed unchanged to 12 cent higher, compared with yes- terday's finish; May, $1.113g-1;; July, $1.097%-%. Corn at one stage rose to equal or within fractions of the three- year peak established earlier in the week, but closed unchanged to 3 higher than yesterday; May, 643« 5; July, 65%-55. Oats were g-14 up; rye, 3g-3; Jeigher and lard 5- 10 up. Strength in securities and prospects of only little precipitation over the grain belt encouraged enough wheat buying to offset profit taking and hedge selling, some of which was inspired by reports of lessened tension in the Mediter- ranean. Unfavorable crop reports from Europe, coupled with the fact that much man power has been di- verted from agriculture to warfare, encouraged the belief here that Eu- ropean harvests wili be smaller this season. Grain range at principal markets Min’apolis Kans. City 1 Winnipeg. JULY Chicago Min’apolis Kans, City Winnipeg Min'apolis Kans. City 1 W'peg. Oct MAY CO! Chicago Kans. City Y C 381a 4 303, Market. d, 1.13%: No. 2. ;' sample, 1.03 . mixed, No. 1 Winnipeg . 39% _ 39% Chicago Cash N har 13 3. red. 1.13 mainly white. yellow, 87-6814; 87% 423 z 0 -45%; No. 3. 44-443,: sample. 3913 Barley, malting. 53-64. nom.: feed. 40-50, nom. Winniper Cash Market. IPEG. ADHl 20 (P _—Cash whest, . Northern. 90%: No. 2. : No. 3, Osts, No. 2, white, 32%; No. 3, 7 3 68%; No. 3. s. No. 1. L 41: No. 2. mixed. sample, 3 N 45343 Lower Net Reported For Amerada Corp. By the Associated Press. NEW YORK, April 20.—Net profit of Amerada Corp. and subsidiaries in 1939 totaled $1,230,764, or $1.56 a share on capital stock, compared with $1,634,486, or $2.07 a capital share, in 1938, A. Jacobsen, presi- dent, told stockholders in the an- nual report. Company produces and sells crude oil and natural gas in the Midwest, Southwest and Cali- fornia. New York Produce NEW YORK, April 20 (#.—Eggs, 33.491: frregulars, Mixed colors: Fancy fancy, 194 xtras, 18%-19%a; packed irsts. ‘18%; graded firsts, current receipts, 1 4: mediums, 15% l{lfir‘l;es‘ No. 1, 16%; average checks, 15 16 of premium marks, rby and Midwestern premium 21%2; specials, 19%; standards. Y resales of exchange to fancy heavier’ mediums. 17%. nearby _and Midwestern mediums. jumbo and premiums, 2 24‘/4,012‘/.: standards, 22-22%: wns: Nearby fancy to extra fancy. 1%: nearby and Midwestern specials, dards. 18%2; mediums. 16%2-17. , _enster. Creamery: an ra, 27%-281: extra (02 VM 8";) fl2r5"/ 215'8‘- 1) 27-27%; sec- ccte. 153301 irrewular; prices un- red. Dressed poultry, steady to frm; all fresh ang frozen prices’ unchanged. e onds Ch orns, T . some 17; pul- ets. , large. 23; medium. zlzgllll. 22-23: old roostery, 12i ducks, uth- erns, 12. h K B9 Spurt in War Buying Turns Commodity Prices Upward Heralds of Fall Boom In Factory Activity Again Climb By FRANK MacMILLEN, Associated Press Business Writer., NEW YORK, April 20.—Commod= ity prices, among the first to herald the autumn boom in factory ac- tivity, pointed upward today on a new wave of war buying. In markets tinged with war spec- ulation, wheat, corn, hogs, sugar, rubber and other staples moved higher this week and some sold at the best quotations recorded in two years or more. Rising tendencies continued in today’s brief trading session on com= modity exchanges, causing some an- alysts to look for a late spring industrial upturn. The advance in farm prices, it was pointed out, means expanded purchasing power for the rural con- sumer if the gains hold. In addition an uptrend in raw material costs was counted a potential stimulus to renewed inventory buying by manu- facturers and dealers. The first stampede of war buying in Septem- ber was followed by one of the quickest upswings in factory pro= duction on record in this country. Industry, however, yielded all the autumn war gains as result of the winter’s lull in new buying and de- cline in unfilled orders on factory books. The spring upturn in commodities started on the news of the German drive into Scandinavia, opening a northern theater for fighting and raising fear of more aggression in the Balkans and the Mediterranean. Mediterranean Fears Ease. While Paris reports of a friendlier understanding between France and Italy on Mediterranean problems al- layed the fears somewhat, war buy- ing seemed to have taken a firm grip on commodity markets. It was manifiest, brokers said, in the week's advance in such staples of world trade as grains, sugar and rubber, regarded in speculative quarters as among the most sensi- tive reflections of wartime economic forces. ¥ Higher shipping costs on with- drawal of Scandinavian bottoms from cargo markets, fear of wider disruption of trade routes if the fighting spreads, diversion of sup- ply and demand to new channels and speculation for the rise on war news were mentioned as among the factors at work in the upturn of raw materials and foodstuffs. Most commodities, having slipped during the winter lull in demand, remained under top prices of the | September-October advance. Certain markets directly affected by loss of Scandinavian trade, in- cluding exports of nearly $200,000,000 annually from the United States, | were boosted sharply by the latest war events. Pulp prices were raised because the German invasion of Denmark and Norway severed an important source of paper and pulp supply. Uncertainty Remains. Although the advance in commod- ities clarified the situation some- what, analysts still were uncertain what the full effects of the shifting foreign trade would be on business !in this country. Some assumed the loss in northern trade would be off- set by gains in purchases by the allies, stimulus to domestic produc= | tion as result of renewed ordering | for inventory and expansion of home output to make up for deficiencies in imported goods. There was plenty of evidence, aside from the rise in commodities, | that Uncle Sam’s business chariot | was hitched to the war steeds. The much-talked $1,000,000,000 allied aviation program in the United States materialized in part with the signature of contracts which were expected to add more than | $500,000,000 in orders to the already big backlogs of aircraft manuface turers. The placing of the orders | appeared to have been hurried by events in Scandinavia. Business, too, was looking up for | shipbuilders and owners. The Sen- ate approved a big Navy bill. The | Matson Navigation Co placed orders for four 12,000-ton cargo boats. American merchant tonnage was in | demand to fill places of withdrawn Scandinavian boats, scores of which have been held in ports to wait decision on their status. The American merchant marine, many Wall Streeters thought, was hearing the loudest knock of op- portunity since the World War years. That belief was reflected in ;| buying of shipping shares on the | stock exchange. Sound War Note Also. The war note also sounded in de- mand for paper, aircraft, woolen, sugar and other stocks responding to rising commodity prices and shifts in foreign trade. These countered the main down trend in the week’s share trading and headed a rally tli\day. with steels chiming in on the rise. The German coup in Scandinavia nipped a spring advance in stocks, diverted speculation largely into commodities and such “war babies” as shipping and paper stocks. Cor=- porate bonds also sagged as sta- ples tock the spotlight in a tradition- al pattern of war speculation. The initial reaction of uncertainty registered in security markets on the break in Europe’s stalemated struggle also was mirrored in latest trade statistics. . Continuing its recession from the tops of the autumn war boom, the Associated Press index of industrial activity dropped to 94.8 per cent of the 1929-30 level from 952 the prezvious week. A year ago it was 85.: Steel production dipped. Fresh buying in steel, trade observers said, was checked by the recent slash in prices on sheets, which made con- sumers wait on the chance other steel prices might be lowered. Farther removed from the ipacts of war, Mr. and Mrs. Consumer shopped aleng retail trade streets for spring and summer merchan- dise as temperatures’ warmed up. Retail trade generally was estimated moderately ahead of last year. Showing the widest increses over last year, Dun & Bradstreet report- 8 ed, was buying of automobiles. The improvement in the home market, it . | appeared, more than offset losses in world motor sales, including Britsh markets, which have cut imports of American cars. g (i