Evening Star Newspaper, April 28, 1940, Page 27

FINANCIAL. . Washington Gas Net Climbs to $223,688 THE SUNDAY STAR, WASHINGTON, D. C, APRIL 28, D. C. Pay Rolls Show Substantial Gains |1940—PART ONE. Selected Stocks Rise Slightly at End of FINANCIAL. Symes Is Named | |War Purchases Exert Head of Cotton || Growing Influence EMPLOYES OF FEDERAL GOVERNMENT EXECUTIVE BRANCH IN CAPITAL 1940 Figure o3 of Februory 29—Orthers for June 30 Eoch Year, Except for Nov. 11in 1918 ond July 31 in 1920 and 1921 During Month March Profit Compares With $178,436 for Same 1939 Period By EDWARD C. STONE. Revealing marked gains in earn- ings, the Washington Gas Light Co. reported to the Public Utilities Com- mission yesterday that March net Income totaled $223,688 against $178,- 436 in March, 1939, a substantial in- erease of $45252. Overating revenues totaled $966,- 808 against $821,816, a jump of $144,- 992. Operating expenses, including taxes, amounted to $686514, com- pared with $583,209, a large increase of $103,305, leaving net operating revenues of $280,284, which was $41,- 687 more than last year. Gross income of $299 974 was more than $47.000 ahead of last year, In- come deductions for interest pay- ments called for $76,286, a slight in- crease of $2,647 over last year in the same month. First Quarter Gain $145,423. The company’s net income for the first three months of 1940 amounted to $789,141, against $643718 in the like 1939 period, a striking upswing of $145423. Operating revenues totaled $3,184.445, a rise of $552,573 over fast year. At the same time, expenses and taxes were $426952 more than a year ago. | The report also shows gas sales | of 1483820 M cubic feet in March | this year, an increase of 268,027 M | cubic feet, or 22 per cent, over March last year, chiefly the result of the colder weather. There were 159,292 meters in service on March 31, an increase of 4,359 over the same date last year. The company expended approxi- mately $77,000 in March and $239,- 500 in the first three months of 1940 for extensions to its property to | provide for the service requirements of customers. Peoples Drug Net Higher. | Peoples Drug Stores, Inc., earned 81 cents per share on the common stock in the first quarter of 1940, against 65 cents in the like 1939 three months, it was reported yes- NEW CHAPTER LEADER— Edward M. Blaiklock, chief teller at the Washington Loan & Trust Co, who has been nominated for the presidency of ‘Washington Chapter, American Institute of Bank- ing, for the coming year. His election is assured on May 9. —Brooks Photo. RE-ELECTED PRESIDENT— William Montgomery, who has just entered his 47th year as head of the Acacia Mutual Life Insurance Co., reports terday at the company's head office here. Net sales i? the first quarter amounted to $5,631,225, in compari- son with $5358333. After deduc- tion of operating expenses, including depreciation and amortization, op- erating profit totaled $254,338, against $193,057 a year ago. | After all deductions, net profit for the common stock amounted to $223915, as compared with $159,136 | in the 1939 quarter. A year ago| more than $12,000 had to be deduct- | ed for interest payments on the preferred stock, which has since been redeemed. The consolidated balance sheet shows total assets of $8,118247.94, against $8,358,490.57. The company reported an earned surplus as of March 31 of $4,047,095, compared with $3507,599 a year ago. More than $61,000 was paid out in com- | mon stock dividends, the report | said. | Bankers Visit Baltimore. { A large delegation of Washington Investment bankers attended a luncheon meeting of the Baitimore | Bond Club Friday and a meeting | of the Southeastern Group of the | Investment Bankers' Association in | the evening. | Emmet F. Connely, president of | the Investment Bankers' Associa- tion, said he was encouraged over prospects of getting Federal se- | curities laws simplified in a way “to free the flow of capital into indus- try, because of a changed attitude toward business on the part of Con- gress.” He said the changes which the association seeks to securities laws are the results of two years’ study by special committees. Seven proposed amendments were shown to the Se- curities and Exchange Commission more than 10 months ago, but last November the association was told that no attempt would be made to have the laws amended at the pres- ent session of Congress. He scored the S. E. C. for a lack of co- operation. Loan Company Votes Dividend. Directors of the State Loan Co., which has its head office in Mount Rainier and several other offices in this territory, have voted the regu- lar quarterly dividend of 1Y, per cent on the preferred stock, pay- able May 15 to stockholders of rec- ord May 1, it was announced yes- terday. A The District of Columbia Build- ing and Ioan League will hold the monthly meeting at the: Raleigh Hotel Tuesday at 12:30 o'clock. Final plans for the Louisville conference will be discussed. The Washington delegation, headed by Robert E. Buckley, director of the Southeast- ern Division, will leave here next Sunday for the three-day session. Securities End Week Strong. Capital Traction 5s closed on the ‘Washington Stock Exchange yester- day at 1011, following an unusually active demand during the week. One sale was made yesterday at 101%. Potomac Electric Power 5!, per eent preferred moved at 1151, and 10 shares of Washington Railway & Electric common appeared on the board at 117. Two 100-share-lots of National Mortgage & Investment preferred stock changed hands at 4. Mergenthaler Linotype was quiet, elosing with 161 bid and 18 asked. No sales. Earlier in the week the stock sold up to 17 on the favorable semi-annual report. Financial District Comment. Leo T. Crowley, chairman of the Btandard Gas & Electric Co., who is still serving as head of the Feceral Deposit Insurance Corp., has been elected a director for the Philadel- phia company. J. Edgar Hoover, director of the Federal Bureau of Investigation, will address the Michigan State Bankers’ Association at the June 17- 19 convention. Several Washington financiers will attend the annual convention of the Association of Reserve City Bankers, opening at Hot Springs, Va., tomorrow. B. & O. Suit Contends 1924 Taxes Overpaid By the Associated Press. BALTIMORE, April 27—The Bal- timore & Ohio Railroad Co, filed suit in Federal District Court today to recover $275,337, which it claimed it overpaid in Federal income taxes | Nichols, advisory medical director. marked business progress in the first quarter of 1940. Montgomery Elected Acacia Mutual Head For 47th Year Dr. Cloyd Heck Marvin Added to Insurance Firm’s Directorate Re-election of William Mont- gomery as president of the Acacia Mutual Life Insurance Co. at the quarterly meeting of the board of directors held in the home office| here, was announced yesterday. Mr. Acacia has often been recounted, and built it up to national pro- portions, the company now having leading cities. Dr. Cloyd Heck Marvin, president of George Washington University, was elected to the board of directors. He is a man of wide civic interests and has served on the directorates of many corporations. Other officers elected by the board included Howard W. Kacy, vice president and general counsel; Lloyd K. Crippen, vice president and actu- ary; Samuel E. Mooers, field vice president; R. B. Montgomery, vice | president; Richard E. Erway, secre- tary; Donald F. Roberts, treasurer; Ralph E. Heitmuller, general con- troller; Dr. J. R. B. Hutchinson, medical director, and Dr. John B. Fine Quarter Reported. Reports showing excellent progress duning the first quarter of this year were submitted to the board by Mr. Montgomery. The total of $412.- 363829 of insurance in force as of March 31, 1940, compares with $401,- 867,275 at the end of the first quarter last year. Asgets reached a total of $88,379,- 733 during the quarter, which com- pares with $81313,840 in the corre- sponding period a year ago. Placed business rose to $7,249,336 from $6,- 887,144 in the first quarter of 1939. First mortgage loans in the Greater Washington area, largely on single family dwellings, aggregated $28,719,375 at the end of this March, a substantial gain over the $26,245,- 315 figure of a year ago. Several Promotions Made. Several changes and promotions in the list of appointive officers were announced by Mr. Montgomery. The post of assistant to the field vice president was created and three ap- pointments were made, T. D. Coch- ran, B. M. Langhenry, and L. O. Nashem. The office of agency secre- tary, vacated by Mr. Langhenry, was filled by appointment of J. B. Powers. Another assistant medical director, Dr. W. A. Price, also was named. 3 Al of these officers, as well as the following who were re-named, have long been associated with Acacia: L. M. Suit, branch auditor; Otto Hammerlund, chief agency account- ant; A. B. Ambler, jr, assistant actuary; F. J. Halliday, assistant actuary; K. S. Carper, assistant controller; C. B. Hurd, assistant counsel; E. M. Thore, assistant coun- sel; George Link, and W. T. Parker, assistant secretaries; Edward Duhey, C. B. Marbury, and C. C. Mont- gomery, assistant treasurers; and Dr. C. M. Beall, assistant medical director. Hershey Chocolate Reports Lower Net By the Associated Press. NEW YORK, April 27.—March quarter net profit of Hershey Choco- late Corp. totaled $1,758,856. This equalled $1.82 a common share after Montgomery has entered upon his | j2%0. o 47th year as directing head of the | company. His brilliant success with | A% Over 1939 Marks Increase Is Estimated At 7 Per Cent for First Quarter By DONALD B. HADLEY. Government and private pay rolls in Washington have registered sub- stantial gains over a year ago in the opening 1940 months, according to latest reports from the Labor De- partment and the District of Colum- bia Unemployment Compensation Board. Judging by February estimates placing the grand total at 319,978 employes with a pay roll of $44,- 981,066 for that month, the March figures should easily exceed 320,000 :mployes and $46,000,000 when all re- ports are in. The February estimates compared with 317,716 employes and $45,527,- 730 in the preceding month and 305,030 employes and $41,899,063 in February, 1939. In the same 1938 month, 291,173 employes were listed with a pay roll of $39,425450. $3,000,000 a Month Added. From the information at hand, the average gain in pay rolls over & year ago approximated 7 per cent in the first three months of this year. This means that around $3- 000,000 a month has.been added to buying power here since the first quarter of 1939. Private employes continue to out- number Government employes, but the pay roll of the latter is much | larger, the reports also showed. Private employes in February were estimated at 164,256, against 162,278 | in the preceding months, 159,614 in February, 1939, and 153,381 in Feb- ruary, 1938. Private pay rolls for February were placed at $18,173 496, against $18,520,193 in the preceding month, $16,797,408 in February, 1939, and $15978,144 in the same 1938 month, Government employes for the lat- est month, including the District force, were estimated at 155722 against 155438 in the preceding month, 145416 in February, 1939, and 137,792 in the 1938 month. Gov- ernment pay rolls for February stood at $26,807,570 against $27,007,537 in the preceding month, $25,101,655 in February, 1939, and $23,447,306 in the same 1938 month. Take Different Paths. The two divisions follow different paths. The Government totals have continued to increase fairly consist- | ently from month to month, while those for private establishments have taken the usual seasonal course with the year's peak in De- cember. Private and Government estimates for the last 14 months follow: PRIVATE. 1939, Employes. ~ Pay roll —- 156303 $17.225.195 how he .took a small local concern | A 60 active branches in the country’s | Jan: February _ 271710 135! 36.807.570 The Government totals, based on official reports to the Labor Depart- ment plus an estimate for the mili- tary establishment, are fairly com- plete. The private totals, adequately reflecting the trend, are | subject to some limitations. Private figures from the Unem- ployment Compensation Board for the latest three months include em- ployes and pay rolls represented by taxes paid when due. ance has been made for the last known rate of delinquency. Also included are estimates for railroad employes, who were shifted from the board’s jurisdiction to the Rail- road Retirement Board in July, 1939. Executive Branch Leads. A breakdown of the Government figures show that the executive | branch alone still has a larger pay roll than all private business here. In February, gains all along the line were recorded. Totals for the various Government branches in February, 1940 and 1939 follow: FEBRUARY, 1940. Executive e AETTTL Legislature _ Judicial Dist. govi *Military *Total Executive Lecislative *Military *Total *Estimate. The executive branch is the only division of either the Government or private pay roll for which rec- ords extend back over a period of years. However, the picture at this point is clear enough to show the amazing expansion. Executive branch employes in various years follow: 25930 in 1905; 33,057 in 1910; 33464 in 1914; 117,- 760 in 1918; 90,559 in 1920; 63,756 in 1925; 68,510 in 1930; 65,437 in 1933; 103,453 in 1935 and 117,103 in 1936. Under a new system of reporting which reduced the total about 3,000 at the time it was started, the figure for 1937 was 115409. This jumped to 120,445 in February, 1939, and finally to 127,771 in February this year. Collections Slower. Despite expanded pay rolls, de- partment store collections here made an unfavorable showing in March, the Federal Reserve Bank of Rich- mond reported. The percentage of March 1 ac- counts ivable collected .during the month declined to 27.5, compared with 28.1 in the preceding month and 28.1 in March, 1939. Back to 1931, the latest figure was ahead of March levels in only three years, 1933, 1936 and 1938. The percentages for March in various years follow: 33.2 20190023 allowing for participating provisions of the convertible preference stock in 1924. The company's brief said fts Federal income tax that year was $1,957,181. and compared with $1795514, or $1.88 on, common, in the March quar- the end of March were larger than a year ago but remained behind 1937 levels, the bank also-reported. Showing a 4.8 per_cent gain over i month, inventories while | An allow- | Thousands of T 1915 1920 total pay rolls. decline in actual employment. BAROMETER OF WASHINGTON BUYING POWER—The above chart traces sharp gains here in employment of the Federal executive branch, which provides the largest single part of The dip in the upward curve for 1937 was caused by a change in the reporting system, rather than a The new system reduced the job count about 3,000 when it was installed. Cotfon Prices Take Irregular Course In Short Session Old Contracts Jump, While New Months Show Declines | By the Associated Press. NEW YORK, April 27.—New and old crop cotton contracts set off on divergent roads today. The old months averaged 4 to 5 points higher, while the new lost 1 to 3. In the nearby deliveries short cov- ering and price fixing by the trade, plus a fair demand from a leading spot interest, found little for sale and prices were bid up to obtait contracts. Earlier in the session nearby months had to get through Bombay sales of around 5,000 bales in July. Continuation of favorable weather in the South, after the crop set- backs because of cold planting weather, chilied demand for for- ward deliveries and at the same time stimulated selling. Speculative interests were content to take it easy in view of the pre- vailing European and legislative un- | certainties. A deadlock in the joint | House-Senate committee on the | agricultural appropriation bill was particularly discouraging to market men. Worth Street reported routine | week-end trade. Prices held steady | most of the week, but toward the close second - hand offerings ap- | peared at slightly below mill quota- tions. | Exports Friday, 9,511 bales; sea- son so far, 5853,495. Port receipts, 5,260; port stocks, 2,690,159. Range follows: New: Low 1 10 4 1 3 0 4 3 6 nNominal. Spot nominal; middling (Ta-inch). Cottonseed Oil. Responding to firmness in markets and reflecting smaller than expected May delivery notices, cot- | tonseed oil futures displayed in- creasing steadiness today, closing 4 | to 8 points higher on sales of 110 contracts. Persistent refiner absorp- tion in May and local covering, as well as switching of May to later positions was the principal trading | feature. May traded at 6.80b; July, | 6.89b; September, 6.97h; October, 6.98b. and December, 7.04. Crude oil in the Southeast and valley was 573 cents nominal, Texas, 5% | to 57 nominal, depending upon lo- | cation. b—Bid. New Orleans Prices. NEW ORLEANS. April 27 (P .—Cotton futures advanced here today on week end short covering. Closing prices were steady, 1t0 5 points net higher. Open. Low. 10.84 z 1056 5, 1007 December _ 10,04 January March ™ __ *May___" 978 ___ Cottonseed ofl closed rime summer vellow. 1018 1 10.04 10.04 9.98b 9.90 9.89 steady. Bleachable B 6.25b Sep- December, 1. C. C. Approves Transfer 0f Norfolk Southern - By the Associated Press. Subject to bondholder acceptance, the Interstate Commerce Commi sion authorized the Norfolk South- ern Railway Co. yesterday to pur- chase the properties of the Norfolk Southern Railroad Co. now in re- ceivership. The order also authorized Norfolk Southern Railway, a new concern, to issue new securities to carry out proposed reorganization of the rail- road. Securities to be issued include $368,000 of 20-year 4 per cent se- cured notes; $3,918,000 of first mort- gage bonds, series A, 414 per cent; $6,892,300 of general mortgage con- vertible . income bonds and 35,000 shares of no par value common stock. The Norfolk Southern Railway Co. proposes to acquire at fore- closure sale the properties of the Norfolk Southern Railroad Co. The commission said that wheth- er the distribution of the new se- curities to the various classes of bondholders, as provided in the re- organization plan, is fair and equit- able was a question within the province of the United States Dis- trict Court for the Eastern District of Virginia “and the court had.-held it to be so.” Seaboard Oil Profit Climbs to $502,949 By the Associated Press. NEW YORK, April 27.—Seaboard Oil Co. of Delaware and wholly owned subsidiaries reported March quarter net profit of $502,949, equal to 40 cents a capital share, against $401,051, or 32 cents, in the March quarter. 1939, were 4 per cent above the same 1939 date and 2.7 per cent behind the 1937 date. They were 0.6 of 1 per cent below the 1929 date. Indexes of March 31 inventories, using the 1929 month as 100, are given below in various years: X 1931 4 | compared with $3,256,000 3b: prime crude, Juls.6.38b: o Corporation Profifs Jump 50 Per Cent Above Year Ago First 250 Companies Show Large Gain In First Quarter By JOHN L. BECKLEY, Associated Press Statistician. | NEW YORK, April 27—Profits of the first 250 corporations to report for the initial quarter of 1940 were 50 per cent greater than the same period & year ago, a compilation by the Associated Press disclosed today. Net income of the group totaled $272,291,000, compared with $181,375,- 000 in the first three months of 1039, Excluding the American Telephone & Telegraph Co.,-whose large earn- ings weigh heavily in the total, first- quarter profits went up 60 per cent. All major industrial groups for| which comparisons could be mnde! showed larger incomes than a year | ago. Biggest gains were recorded by manufacturers of railroad equip- ment and by the petroleum and | steel industries. Food and finance companies, pub- | lic utilities and manufacturers of business machines showed smallest improvement. Big Backlogs Help. A large backlog of unfilled orders from late 1939 enabled nine rail- road equipment companies to report earnings of $4,365,000, compared with $906,000 in the first three months of 1939. . Eight petroleum companies more than quadrupled last year's results, showing net income of $13,269,000, in the March quarter last year. Heavy de- | | the | 2 |mand for heating oils, plus good profit margins, made it an excellent quarter for the petroleum industry, climaxing a year of steady im- | provement in earnings from a rela- - | tively « unsatisfactory level a year | ago. Twenty-six steel companies rolled up profits of $25,134,000 against $6.865.000 a year ago, despite the de- cline in operations since November. Fourteen food companies, on the | other hand, increased their first- | quarter net income only slightly | from $17,091,000 to $17,656,000. Sev- | eral companies in the group showed smaller profits than a year ago as prices of wheat, corn and ather raw materials rose faster than prices ob- taltned for manufactured food prod- ucts. Paper Profits Climb. Earnings of pulp and paper man- ufacturers reflected the higher prices prevailing since the war Jeopardized shipments from Scan- dinavian countries. Profits of seven companies totaled $2,.544,000 com- pared with $1,267,000 a year ago. First-quarter earnings of other industrial groups compare as fol- lows: Pct. main. 45 1 1940. 1939. $43.836,000 $30,230,000 " 7280000 4.372.000 17.073.000 15.8‘21.000 6.958.000 5.387,000 15 chemical companies auto ac. cessory 12 public util- y 11 metal ing 0 blde. ma- terial’ and eauip. 3.908.000 8 railroads__ 7.000 7 finance -__ " 8.672.000 1.366,000 3,732,000 4 electrical g5%0UP g 10:548.000 miscella- neuos ___ 84,373,000 d Deficit. Steel Industry Pay Rolls chines 3,458,000 9.884,000 66.059,000 {Down During March | By the Associated Press. NEW YORK, April 27.—Steel in- dustry pay rolls dropped to $68,- 768,000 in March from $70,847,000 in February, the American Iron & Steel Institute said today. In March a year ago pay rolls totaled $64,- 174,000. The number employed in the in- dustry averaged 514,000 in March against 538,000 in the preceding month and 455000 in March a year ago. p Wage earning employes earned an average of 83.6 cents per hour against 83.4 cents in February and 828 cents in March, 1939. Workers put in an average of 323 hours per week in March against 341 hours in February and 34.7 hours in the same month last year. American Shares Sag On Amsterdam Bourse By the Associated Press. AMSTERDAM, April 27.—Ameri- can shares declined today as Bourse traders studied the Friday behavior of Wall Street. Weakness was especially evident in steels and air- crafts but final prices for most is- sues were near the day’s lows. Do- mestic stocks held comparatively steady, with changes limited to 2 points in either direction. Sugar and shipping shares ended on the minus side. London, Paris and Liverpool markets were closed. 325 Tons of Lead Sold NEW YORK, April 21 (#)—8t. | 60 stocks was up .1 of a point at 50, | was exemplified by the fact the| | Baldwin Joseph Lead Co. reported 100 tons of Southeast Missouri pig lead sold yesterday at $4.95 per 100 pounds, East 8t. Louis; 75 tons at $5.15, New York, and 150 tons at the New York Uneven Week Machinery and Shipping Shares Lead; Steels And Aircrafts Up WHAT STOCKS DID. Advances Deelines _ Unchanged Total issu By FREDERICK GARDNER, (Associated Press Financial Writer). NEW YORK, April 27.—Selective recoveries, today tipped the stock market scales slightly upward and enabled the list to close an uneven week with a minor net advance. ~Machinery and shipping stocks led the foward tilt, with steels, aircrafts and a few rails, coppers and farm implements displaying mild rising tendencies. Motors, rubbers, mail orders and oils lacked climbing power throughout. Gains ran to a point of so for favorites. War Shares in Front. Financial quarters found nothing particularly upsetting in Nazi For- eign Minister Von Ribbentrop’s blast at the allies, although many traders continued to stand aside as the re- sult of reverses reported suffered by the British in ‘Norway which, in some quarters, were considered bear- ish marketwise. With the intensifi- cation of the overseas conflict, how- ever, stocks of companies that can manufacture war materials were brought to the fore. Although the domestic industrial picture was far from clear, fore- casts of an upswing in next week's steel mill operations sounded an op- timistic note and aided shares.in the metal group. Aircrafts, recently sluggish, came ¢n for attention on the idea’ big plane orders from abroad in the past several weeks may have not been entirely dis- counted. More favorable prospects for passage of the transportation bill in Congress propped carriers. Estimates of higher farm income in 1940 helped agricultural implements, Average Edges Higher. The Associated Press averages of | the lengthy sidewise swing of prices composite a month ago stood at 50.3. | It was the slowest session since | March 9, transfers for the two hours | tod: totaling 349,040 shares, against 720,- | 660 last Saturday. & Hitting new tops for 1940 were Locomotive, Bridgeport Brass and National Acme. Finish- ing ahead were U. S. Steel, Bethle- hem, Worthington Pump, Interna- tional Paper, N. Y. Shipbuilding, |V International Mercantile Marine, American Car & Foundry, American Smelting, Douglas Aircraft, Glenn Martin, Ex-Cell-O Corp., Johns- Manville, Loft and Great Northern. Modest curb gains were posted for Bell Aircraft, Brewster Aero, Fair- child Engine and Republic Aviation. Volume was around 92.000 shares, | compared with 117,000 a week ago. | Conflicting war currents were seen | | Chicago ‘Manufacturers By the Associated l’l‘.ll.' WHITE SULPHUR SPRINGS, W. Va., April 237.—Fred W. Symes of Greenville, S. C., was elected presi- dent of the American Cotton Manu- facturers’ Association today st the 44th annual convention, succeeding K. P. Lewis of Durham, N. C. Symes was elevated from the sec- ond vice presidency. Other officers chosen were: First vice president, William N. Banks of Grantville, Ga.; second vice president, Charles A. Cannon of Kannapolis, N. C,, and W. M. Mc- Laurine of Chariotte, N. C., re- elected secretary-treasurer. Wheat Stages Rally At Chicago After Week's Decline Gains Ranging to More Than a Cent Reduced Before Close By FRANKLIN MULLIN, Associated Press Market Writer. CHICAGO, April 27.—The wheat market today reversed the week's downward trend as traders, cover- ing previous short sales and eve- ning up accounts for the week end, bid prices up more than a cent a bushel. | The critical European situation | caused this show of caution and found many dealers unwilling to risk unusual developments in the war. After an early slump of as much as 3 cent due to favorable weather over most of the grain belt, | prices shot up almost 2 cents to score net overnight gains of as much as 1% cents at one stage. May contracts, on which deliveries can be made beginning next Wednes- | day, led the upturn. | Wheat closed than yesterday; July, $1.07-1.067,. up; May, 64%-13; oats higher; rye, 1s-% higher, and lard, 7 higher. | Grain range at principal markets ay: | MAY WHEAT— High. Low. Close LOKTy 1.0305 1.0805 Minneap'lis 1.04 1.023¢ 1.0313 Kans's City 103' 10115 1.09%% Winnipeg &91; 883, 89 JULY WHEAT— Chicago 1.0735 1 X, Minneap'lis 1041y 1 023, | FissCl 1024 1000 4 %-1 cent higher May, $1.081; Corn was July, 65%3-1;; Prev. Minneapiis 10430 105 neap'lis 1. 03 K'ns's City 1.02% 1.00% NP e RN_— Chicago .64 Kansas City '65 ULY N— OCT.Wi Winnipeg .63 647 Kansas City MAY OA’ Chicago Minneapolis Winnipeg Chicago 85, 643 TS as the week'’s principal handicap for ra stocks. Prices were up a trifle Mon- day and Tuesday, the averages were | unchanged Wednesday and Thurs- | 5Qi day and spreading uneasiness over Scandinavian battles gave the mar- ket its hardest slap Friday. First-Quarter Building Reported Below 1939 Bs the Associated Press. CHICAGO, April 27.—A decline of | about 10 per cent in construction | activities during the first qunrtew‘ compared with the first three months of 1939 was reported today by E. M. Craig, secretary of the National Association of Building Trades Employers. This survey cov- ered 44 States and 39 cities. The association’s statistics showed that in the 1940 period building permits in 44 States had a value of $751,568.680, compared with $846,- 259,698 last year. Permits issued in 39 cities totaled 49,674 and were valued at $182,459,682, compared with 52,222 and $189,486,301 the cor- responding 1239 period. Creig said indications are that the second quarter will show a decided increase, as early spring activity has been hampered by bad weather and increased wage demands in cer- tain cities undoubtedly have caused the public to hold back. Big Drop in Cottonseed Prices Feared in Fall By the Associated Press. MEMPHIS, Tenn., April 27.—The National Cotton Council predicted today “disastrously low” cottonseed prices this fall “unless powerful measures are taken to forestall a glutted domestic fats and oil mar- ket.” The council based the prediction on expected increases in production of cottonseed and its two principal competitors in the home market, lard and soybean oil. Cotton acreage will be up 8 to 10 per cent, the council said, and es- timates indicate the largest lard production of any year since 1934, and substantial increases in pro- duction of soybean oil in Illinois, Iowa and Ohio. Maijestic Radio Plc_:m Approved by Court By the Associated Press. ! CHICAGO, April 27.— Federal Judge John P. Barnes approved a plan of reorganization for the Ma- Jjestic Radio and Television Corp. today, providing for a new com- pany of the same name and $165,- 000 working capital. Two-thirds of the 250 creditors and a majority of the 2,000 stock- holders must approve the plan be- fore it becomes operative. The company proposed issuance of $165,000 worth of 5 per cent, 10- year debentures, with stockholders to be given the first opportunity to purchase at 30 cents a unit. Three New York investment firms would underwrite whatever amount was not taken up by the stockholders. Barnsdall Net Drops NEW YORK, April 27 (®).— Barnsdall Oil Co. reported for the quarter ended March 31 net profit of $357,737, equal to 15 cents & share compared with $565417, or 25 cents a share, in the 1939 March No. malting. 0. 3 malting, 5-39: 66 no: 63. Market. (#).—Cash wheat, 0. 2. 871s: No. 3. 37%; No.'3. 367. Lumber Production Gains Moderately in Week Lumber production during the week ended April 20, was 3 per cent greater than in the previous week; shipments were 6 per cent less; new business 0.5 per cent less, according to reports to the National Lumber Manufacturers’ Association from regional associations covering the operations of representative hard- wood and softwood mills. Ship- ments were 3 per cent below pro- duction; new orders, 3 per cent above production. Compared with the corresponding week of 1939, production was 5 per cent greater; shipments 2 per cent greater and new business, 5 per cent greater. The industry stood at 68 per cent of the seasonal weekly aver- age of 41929 production and 66 per cent of average 1929 shipments. Reported production for the 16 weeks of 1940 to date was 11 per cent above corresponding weeks of 1939; shipments were 6 per cent above the shipments and new orders were 9 per cent above the orders of the 1939 period. For the 16 weeks of 1940 to date, new business was B per cent above production, and ship- ments were 5 per cent above pro- duction. The ratio of unfilled orders to 8ross stocks was 22 per cent on April 20, 1940, compared with 17 per cent a year ago. Unfilled orders were 29 per cent heavier than a year ago; 8ross stocks were one per cent less, — e Paramount Pictures Earnings Reduced BY the Associated Press. NEW YORK, April 27—Para- mount Pictures, Inc., and subsidi- aries today reported net profit for 1939 of $2,757,944 equal after divi- dends of $1,201,072 on first and sec- ond preferred stocks to 63 cents on common. This compared with 1938 net profit of $2,865,676, or 68 cents on common. The earnings did not include $1,117,000 which represented Para- mount’s net interest in combined undistributed earnings of partially owned companies. Consolidated net profit totaled $3,874,944, or $1.08 on common, against Consolidated 1938 profit of $4,105,676, or $1.18 on com- mon. Winnipes C: WINNIPEG, April bo No. 1 Norshern, 8 84%. Oats. No. 2 whi Export-Import Bank Boosts Commitments 8pecial Dispatch to The Star. FRENCH LICK SPRINGS, Ind., April 27.—Total commitments of the Export-Import Bank, Washington, D. C., have more than doubled since Congress last February increased the lending authority of the bank from 100 million to 200 million dol- lars, Warren Lee Pierson, president, Iate today told the Bankers Associa- tion for Foreign Trade meeting here. In releasing figures as of April 15, Pierson said commitments ag- gregated approximately $380,587,000. Actual disbursements have exceeded $140,200,000 of which amount $55,- 962,733.12 have been repaid. Outstanding loans and active com- quarter. ‘ mitments, he said, total $215,797,~ vk On U. S. Business Orders in First Year Expected to Reach . Two Billions By FRANK MacMILLEN, Associated Press Business Writer. NEW YORK, April 27—War orders were rated by some business authorities today as an increasingly powerful force pointing to an upe ward turn in the Nation's industrial trend. The trade magazine “Factory,” in & “war communique” to American industry, estimated allied buying would provide a $2,000,000,000 “im- pulse” for business in this country in the first year of the war. “The $2,000,000,000 are beginning to tug sharply at the outlines of our peacetime economy, producing a sort of jagged, uncertain recovery,” the magazine said. Reporting the allies have been moving slowly except in aircraft in tapping the immense productive ca- pacities of American industry, “Pac- tory” observed: “We are definitely holding the towel for the allies and have a big stake in the outcome. “‘War business,’ still largely ten- tative, still not big (in the 1914-15 sense), has nevertheless taken its hold on our economy. Slump Is Avoided. “The economists who last fall warned industry—and wisely—to concentrate on tne domestic upturn then in the making have been com= pelled by changing circumstances to admit that war trade has begun to haul us out of what might have been a serious slump.” Chemicals, iumber, copper and leather, the magazine added, have been among raw-material industries feeling the lift of war buying, partly in supplying needs of the busy aire craft, metal-working and shipbuilde ing industries. Weighed against the war orders, however, were loss of Scandinavian trade since Germany invaded Den- mark and Norway and fears that a war move in the Balkans and Medi- terranean might close another big area to foreign trade. United States commerce figures showed exports ‘in the first three months of the year topped $1,000,- 000,000 for a 51 per cent gain over the comparable 1939 period. Much of .| this was accounted for by expansion of trade with Canada and Latin | America. | Striking shifts in this country's trade with the United Kingdom were shown in an analysis by the Na- tional Foreign Trade Council of the effects on exports and imports of _ | the far-reaching economic controls adopted by England since the out- break of the war. Offset by Losses. Expansion in British purchases of aircraft, metals and machinery, it was noted, largely have been off- set by curtailment in buying here of tobacco, fruits and other com- modities. The British controls, some trade quarters said, appear to have been .| effective in giving trade with the + | United States an increasing “war *| character” and bringing about cor- responding shifts in factory activity. Surveying prospects, the National | Association of Purchasing Agents re- ported war industry had contributed to an uneven appearance on the home industrial fronts. “On the West Coast,” said the re- port of the men who do most of the buying for big business, “business conditions are showing some better- ment from manufacturing plant ex- tensions, the continued high rate of aircraft production and improve- ment in home building. “In Canada further increases are a result of war orders. “The rapid drop in production and distribution in major lines of trade in this country since the first of the year has been retarded if Inob stopped. “The Midwest is holding its busi- ness volume steady at the moment and the East is experiencing a slight decline. Moderate Rise Forecast. “The concensus seems to be that any change from the present levels would tend toward a moderate up- ward improvement during the next couple of months.” Further stimulus to shipbuilding was seen in trade circles as result of allied buying of old ships in the United States and diversion of Nor- wegian and Danish vessels from some trade routes since the fight- ing started in Scandinavia. Norway’s big tanker fleet was ex= pected to go mostly into allied serv- ice. The trade journal Iron Age said American oil companies plane ned to order a “considerable num- ber” of oil carriers from shipyards. Shipbuilding and aviation were pictured set for further expansion of payrolls. Aircraft employment was estimated at 70,000, with factory ca- pacity nearly tripled. Munitions Ordered. The war aspects were further spotlighted this wéek by Bethlehem Steel's first quarter earnings report, showing the largest profit for the period since the World War years, and the report American Car & Foundry Co., a leading rail equip- ment maker, planned to reopen its Buffalo plant to handle a “substan- tial” contract for munitions from a foreign power. A revival of inventory buying came in paper and pulp since the Scandi- navian fighting bspke out and the northern supply of wood products quickened business for domestic and Canadian paper companies. But in most markets, trade re- ports said, buyers continued to or- der. leisurely while manufacturers and dealers worked off inventories accumulated in the autumn buying rush. At retail counters, on the other hand, spring temperatures in many communities brought a spurt of de- mand for warm weather merchan- dise, overcoming some of the lag in sales recently. Keith-Albee Reports Decline in Earnings By the Associated Press. NEW YORK, April 27.—Keith Albee-Orpheum Corp. and subsidi- aries showed net profit after all charges for the 13 weeks ended March 30 of $312452, equal after 7 per cent dividend requirements (on which there is an accumula- tion of unpaid dividends) to 16 cents a share on common. This compared with $327,186, or 17 cents on common, in the comparable 1939 A