Evening Star Newspaper, June 2, 1940, Page 29

FINANCIAL. D. C. Bankers to Leave For Annual Conclave Wednesday Nearl); 250 Financiers And Guests Expected To Board Train By EDWARD C. STONE. Nearly 250 Washington financiers and their guests will leave the Cap- ital by special train over the Ches- apeake & Ohio Ry. Wednesday after- noon at 3:30 for Hot Springs, Va., where the 22nd annual convention of the District Bankers Association will be held on Thursday, Friday and Saturday. The attendance will exceed last year, according to total reservations up to yesterday. Among many invited guests are Preston Delano, Controller of the Currency; Mariner S. Eccles, chair- man of the board of governors of the Federal Reserve System, and D. J. Needham, chief counsel of the, American Bankers Association. The opening day’s program calls for an address by the association president, Ord Preston, and an ad- dress on “The International Situa- | tion” by Dr. Elmer Louis Kayser, dean and professor of history at George Washington University; a report on the Credit Bureau by | BANKERS’ PROGRAM READY—Ord Preston, District Bankers’ Association (left), who will open the 22d annual conclave at Hot Springs, Va., Thursday, and A. Scott Offutt, general chairman, who predicts one of the best meetings in years. THE SUNDAY STAR, WASHINGTON, D. C, JUNE 2, 1940—PART ONE. Buying Power More Widely Distributed resldent of the Cotfon Futures Sag One fo Three Points After Early Rise War News and Threat Chairman H. T. Bisselle; appoint- | ment of the Committee on Resolu- | tions and the Nominating Committee. | Friday's session includes the re- | port on commercial trade activities by Chairman Barnum L. Colton; address on “The Tax Situation in the District of Columbia” by Jo V. Morgan, and an address on “Con- sumer Credit” by Walter B. French, of the American Bankers Associa- tion. Saturday's program includes | an address on the “Economic As-| pects of America with World War | Conditions and the Aftermath,” by | Dr. William Y. Elliott, of Harvard University. Saturday's program also calls for | & review of the Institute of Bank- ing’s year by Francis E. Robey, pres- ident of Washington Chapter, a host of other reports, resolutions, and will wind up with the election of officers. An array of netertainment features have been planned for afternoons and evenings. A Scott, general chairman, yesterday predicted one of the best conventions in years. The party will return to Washington late Bunday. ‘Washington Gas Net Climbs. ‘The monthly report of the Wash- ington Gas Light Co. filed with the Public Utilities Commission yester- day shows an increase of $101,237 in the operating revenues for April this year compared with the same month in 1939. The total operating reve- | nues for the month were $891268, against $790,031 for April, 1939. Operating expenses and taxes | amounted to $642,560 this April, an increase of $88,422 over April a year ago. Non-operating income was $4.437 higher in April this year,| amounting to $21979. Income de-| ductions were $66.977, a saving of | $5,126 in comparison with the previ- ous year's figure, and the net income for April was $203.710 this year,| against $181,332 in 1939, a gain qf $22,378. | The company's net income from | operations for the first four months of 1940 amounted to $992.851, a gai of $167,802 over the same period last | year. | The report shows gas sales of | 1352783 M cubic feet in April this year, an increase of 193,673 M cubic | i feet, or 17 per cent over April last year. There were 159,541 meters in service on April 30 this year, an in- crease of 4,441 over the same date | last year. The company expended approxi- | mately $90,500 in April and $330,000 in the first four months of 1940 for extensions to its property to pro- vide for service requirements of customers, the report showed. 100 Bankers to Visit Capital. Members of Washington Chapter, American Institute of Banking, to- day will entertain more than 100 Boutheastern delegates en route to the annual convention in Boston. ‘The visitors will arrive this morn- ing and be guests at lunch. During the afternoon a sightseeing tour will be offered, follgwed by a dinner. ‘The Southern delegation will in- clude J. T. Dart, incoming national president; J. A. Reagan, Garnett Carter, Edward F. Matthews and L. M. Barousse, all national executive councilmen. The delegates coma from 10 Southern States, including Virginia and West Virginia. | ‘Washington Chapter's Entertain- ment Committee includes J. Earle McGeary, Kenneth Birgfeld, Edward M. Blaiklock, John M. Christie, Joseph R. Fitzpatrick, Raymond L. Jones, William H. Laughlin, Robert H. Lacey, Francis E. Robey, W. L. Sanderson and Paul J. Seltzer. Several members of the committee will go on to Boston with their guests. Insurance Totals $4,884,000. Twenty-seven members of the Life Insurance Club of Washington wrote an aggregate of $4,884.000 of insurance on the lives of Washing- tonians in 1939, George T. Black, secretary-treasurer, announced yes- terday. The summary has just been completed. Club members reporting this large total include Carl B. Balluff, H. L. Barlow, George T. Black, Francis M. Brotherhood, Armand Durant, G. B. Farquhar, Paul W. Hammack, Dan J. Harrison, Edward D. Hill, Ray- mond B. Hotchkiss, Frank C. Jude, B. H. Lingo, John P. Lynch, William D. Macy, 3d; James A. Maloney, Ber- nard C. Marberry, J. E. McCombs, John E. O'Brien, Paul Primm, L. H. Riggles, William H. Ross, Norman L. Simmons, Charles B. Sinclair, R. V. Shepler, Graham E. Wilson, Guy Withers and Wyndham R. Wills. The club will conclude the year’s activities with a dinner at the Con- gressional Country Club, Tuesday evening, President C. B. Sinclair presiding. S. E. C. Registrations Listed. A total of $245,723,000 of securities was registered with the S. E. C. in April. The amount proposed for sale by issuers was $133,065,000 against $46,929,000 in March and $235,667,- 000 in April, 1939. Fixed interest obligations accounted for 58 per cent of the total, preferred stock 30 per cent, common 8 per cent and participating certificates 3 per cent. The House has passed and sent to the Senate a drastically changed set of amendments to the Federal Home Loan Bank, National Housing and Home Owners’ Loan Acts, after eliminating what critics called a proposal to establish a national branch banking system. Bankers . have been following the legislation with deep interest. | weeR end and possibility of more | | domestic sources. Pressure increased Of Textile Mill Curb Affect Market By the Associated Press. NEW YORK, June 1.—Increased domestic and foresign selling tripped the cotton futures market after early gains today. Final prices were down 1 to 3 points. The market played over a fairly wide range as traders tried to ad- just their positions to the confing violent European disruptions. The threat of curtailed textile mill activity, said to be due in part | to too high raw cotton prices, also | was rated a market influence. Trade buying and a steady Bom- bay market tempted early support. The bulge, limited to an outside of 7 points, immediate attracted liqui- dating orders from both foreign and with further hedge selling by large spot interests and prices dropped as much as 12 points before liquida-~ tion slackened. Short covering and price fixing for | mill account pulled the market up | from the lows. | Worth Street reported gray goods | sales were well below current pro- duction. Curtailment is gradually gaining momentum. Exports Friday, 3434 bales; sea- son so far, 6,120,087. Port receipts, 4,867; port stocks, 2,574,539, Range follows: High. 9.59 R BR £.50 Low. July 0.49 October 3 December March _ May = 5 July (old) 948 947 033 Spot. nominal: middling (%s-inch). 1 20, Cottonseed Oil. Bleachable _cottonseed oil vanced 2 to 8 day. futures ad- points in quiet trading to- Week end short covering in absence of "pressure * accounted for the upturn. Sales totaled 12 contracts. Crude oil was d 5'a cents nominal in the South- afley: Texas oil also was nominal New Orleans Prices. NEW ORLEANS. June 1 (#.—Cotton fu- tures declined here today under week end ong tion. Closing prices were steady, 2% 4 points net lower. July October ~__ December _ Cottonseed oil closed steady. prime summer yellow. 5.80n: prime crude nominal. _July. 548b: September, 5.52b; 5.34b: December, 5.65b Nominal. b Bid. Essay Confest Winner With Riggs 12 Years Theodore P. Cowgill, winner of the essay contest sponsored by the Dis- trict Bankers Association for mem- bers of Washington Chapter, Amer- ican Institute of Banking, has been with the Riggs National Bank since 1926. Starting as a bookkeeper, he has advanced steadily and is now with the audit and analy- | sis_department. Born in Wash- ington, he is a graduate of Central High 2 School and the Theadore P. Cowslll. American Insti- tute of Banking, where he took the standard and several special courses. This was his first attempt in com- petitive essay writing. Thomas E. Whinerey and James F. Bridges of the same bank won second and third prizes, respectively. The three rewards are a trip to the Bankers Convention, $75 and $50 in cash prizes. New Debt Arrangements With Reich Reported By the Associated Press. NEW YORK, June 1.—Represent- atives of Wall Street banks are re- turning from Europe with a plan for renewal of a “standstill” agree- ment with Germany covering com- mercial credits, informed banking sources said today. The plan, it was learned, was worked out in discussions in Rome for submission to a “standstill” committee from local banks which had extended credits to Germany. A temporary arrangement calling for gradual reduction of outstanding credits was made last December. It expired yesterday. Under it Ger- many paid interest ranging from 3 to 4 per cent and cut the estimated indebtedness from $46,000,000 to $40,000,000. The new plan, it was said, prob- ably followed closely the expired agreement, but disclosure of the de- tails awaited return of the negotia- tors. They are due home within the next 10 days. Bleachable a net income after charges of $6,- 146,830, compared with a net in- come of $2,516,207 in the like period of_1939. In line with Washingtons sharp increase in May bank clearings, Baltimore reports a total of $349,- 059,124 against $285,154,620 in May, | slightly smaller than last year. | Chicago’ | Minneapolis | Win'peg. “Oct. DE( For the first four months of 1940, the Pennsylvania Railroad showed ” 1939. In the five months clearings also far exceeded last year, Wheat Prices Aided By Large Brifish Order in Canada Small Gains Recorded; Forecast of Big U. S. Crop Is Offset By FRANKLIN MULLIN, Associated Press Market Writer. CHICAGO, June 1—Sale of 50,- 000,000 bushels of Canadian wheat to Great Britain, sufficient for nor- mal British requirements for three months, was enough to produce a small advance in domestic prices here today, offsetting the forecast of a total United States harvest only Announcement of the sale of the Canadian wheat to the British gov- ernment was made just before the market closed and explained in part an earlier advance of more than 2 cents a bushel in Winnipeg quota- tions, which helped to strengthen this market. However, Winnipeg prices closed with net gains of only 13 cents. Traders said Canadian Wheat Board grain was involved in the sale, which accounted for the mild response at Winnipeg compared with what might normally be ex- pected in connection with business of this size. The price was not an- nounced, but Canadian officials said it was considerably above the pres- ent market. Chicago prices were almost a cent higher at one time, but then fell be- low the previous close only to rally again and finish ;-5 cent higher than yesterday, July 82-817%, Sep- tember 823%-15. Corn closed 13-3% up, July 61%2, September 60%; oats unchanged to Y up; rye %-1 cent higher, and lard % higher. Confused European news, reports of renewed vigor on the war along the Somme and of possible entry of ltaly kept traders alert, but en- couraged little pit activity. Wash- ington reports were interpreted as indicating that the fixed minimum prices for grains probably will re- main in force. July oats and all soy beans contracts held at these mini- mums throughout the session, while quotations were near the minimums. Grain range &t principal markets today: Prev. Low. Close. Close. 81%-3 BO0% JULY Chicago Minneapolis SEPT. W] Kansas City 3 76% -82%-14 | 80% * 811,35 | ki 783 'C. W — Chicago m“;‘ Minneapolis enty Wan. Chicego 81 4 Kansas olty [63% 80% . Chicago, Kansas ‘City JULY Chicaso . inneapolis Winnipeg . _ 80! R -30% 132% Chicago Cash Market. T bushels. Gats, lower; receipts, ; bookings. 58,000 -1Y, lower; basis, 15-115 I 5 cars; sales. 35,000 bushel Winniper Cash Market. WINNIPEG. June 1 (@. No.'l Northern. 74%: No 7. 3 6RY, Oat; . 2, ., 138 s No. 2, white, 42 Electrical Equipment Sales Likely fo Jump 8pecial Dispatch to The Star. NEW YORK, June 1—A substan- Hal gain in demand during the next few months for electrical equipment designed for utility and industrial companies is forecast in Poor’s in- d_ustry and investment surveys. A rise in orders for electric household appliances, reflecting greater con- sumer buying power, also is pre- dicted. “The electric power and light in- dustry will be a much better cus- tomer of electrical equipment man- ufacturers during 1940 than last year,” states the forecast. “Since the outbreak of war in Europe elec~ tric output has risen to a record level—nearly 50 per cent in excess of that of the 1928-31 period. Ac- cordingly, production facilities of some electric power and light com- panies already have been over- burdened, “According to the Edison Electric Institute, construction expenditures by privately owned electric utilities will be $644,000,000 during 1940, of which $194,000,000 will be for gen- erating plants, $11,000,000 for hy- droelectric plants and $184,000,000 for steam plants. Distribution equip- ment will constitute the largest item at $204,000,000. The balance will be distributed between trans- mission, substation and miscellane- ous ifems. Obviously, manufactur- ers of generators, transformers and transmission and distribution equip- ment will experience good sales gains.” Chicago Stocks Mixed In Fractional Range By the Associated Press. CHICAGO, June 1—Gains and losses were about evenly divided at the close of trading in securities here today, with net changes frac- tional in most cases. Transactions.'totaled 8,000 shares and 17 issues finished higher, while 15 declined and 12 remained un- changed. Volume for the week to- taled 100,000 shares, compared with 273,000 last week and 86,000 & year Stock Market Quiet As Traders Await War Moves Absence of Any Real Pressure Encourages Bullish Forces 'WHAT STOCKS DID. Advances Declines Unchanged Total issues By FREDERICK GARDNER, Acssociated Press Financial Writer. NEW YORK, June 1.—Hesitancy returned to the stock market today after a week devoted mainly to calming war-shaken speculative nerves. Many traders had extended their Memorial Day recess over the con- cluding short session and others who appeared in boardrooms, in- clined to lighten commitments in view of fears Italy would jump into the conflict on the side of the Nazis over Sunday or that Hitler would spring a new blitzkrieg. Negligible selling throughout, however, offered some encourage- ment to bullish contingents. Lack of any real pressure was attributed to thoughts of some that the ad- ministration’s huge rearming pro- gram will put props under numer- ous industries that may be hit by :o b 5 unsettled foreign trade. Profits Uncertain. There were conflicting opinions, though, on the effect of defense spending on corporate profits. These brought up the outlook for much heavier taxation on both companies and individuals which might put a serious damper on inflationary psychology. In today's brief session irregu- larity persisted from the opening on, with declines of fractions to a point in the majority at the close. With the ticker tape loafing to the finish, transfers of 273445 were the smallest for any Saturday since January 20. They compared with 554,330 a week ago. The Associated Press average of 60 stocks was off .1 of a point at 38.5, but on the week it showed a net gain of .4 of a point. It was the first weekly advance in five weeks. With the exchange closed Thurs- day for Memorial Day, the week's volume of about 3,000,000 shares compared with 10,000,000 the week before, when quotations were evap- orating. Among the day’s losers were U. 8. Steel, Bethlehem, United Aircraft, Douglas Aircraft, Lockheed, Ana- conda, American Smelting, Sears Roebuck, Montgomery Ward, Great Northern, Texas Corp., Union Car- bide and Westinghouse. Motor Leaders Up. General Motors and Chrysler were unchanged until the last few min- utes when they edged up minor fractions. Ahead small amounts were American Telephone, Western Union, Santa Fe, Sperry and Good- year. The market had the benefit of forecasts of a brisk increase in next week's steel mill operations. Bonds and - commodities were mixed. Wheat at Chicago was up % to 3 of a cent a bushel and corn gained % to %. Cotton lost 5 to 15 cents a bale. “Free” ster- ling backed down, along with the French franc. In an uneven Curb firmness was displayed by Aluminum of America, American Cyanamid “B” and Jones & Laughlin. Lagging were E. W. Bliss, Gulf Oil, Humble Oil, Elec- tric Bond & Share and Brewster Aero. Activity here was the most sluggish since August 19 last, with transfers of around 44,000 shares, comparing with 101,000 on the pre- vious Saturday. \ British Orders Start Copper Buying Rush By the Associated Press. NEW YORK, June 1.—British or- ders for 25,000 tons of copper touched off the biggest domestic buying wave this week since February. Britain insisted on prompt ship- ment with the result the market was swept clean of all meta! priced below 11%; cents a pound. Local con- sumers rushed in with orders for more than 10,000 tons to forestall possible shortages for nearby needs. Anxiety to guard against under- supplies of copper was intensified by announcement of United States de- fense plans. ‘Trade sources reported the British recently had been taking what metal they could in the outside market at the bargain price of 11% cents a pound. A 25000-ton order, they pointed out, forced the buyers into the primary fleld and even there it was probable no one producer was ready to supply so much metal. Earlier in the week the French government placed another order for 75,000 tons of copper with the same group of American-cwned foreign | producers, which has been supplying French wartime needs. Total French buying since start of hostilities stands at 375,000 tons, costing around $100,000,000. Turnover in lead was confined mostly to carload lots at the steady price of 5.00a5.05 cents a pound. Zinc held firm at the recently estab- lished, base of 6 cents a pound, East St. Louis. Baltimore Phone Revenues Above 1939 in April Special Dispatch to The Star. BALTIMORE, June 1.—Operating revenues for the Chesapeake & Po- tomac Telephone Co. of Baltimore City, serving the State of Maryland, during April of this year totaled $1,- 440,589, as compared with $1,333,673 for the corresponding month of last year. Operating expenses, taxes, were $1,185607, which was $125477 more than for April, 1939. Net income for the month was $254,~ 992, a decrease of $18,551 from April of last year. Taxes for April of this year amounted to $208436, or about 15 per cent of the customers’ telephone bills. The total was $7,568 more than for the previous April. Dur- ing the first four months of this year taxes totaled $814433, about 6 per cent more than during the cor- responding period of 1939. Maryland was served by 289,330 telephones at the end of April, an increase of 19,921 over the number in tion a year earlier. Users ml&me than 40,227,200 calls dur- ing the month, an increase of 134 per cent over the number made dur- including | 1840 - Income Tax Returns Filed by 113,992 Persons Here By DONALD B. HADLEY. The District of Columbia has more persons with incomes large enough 0 require Federal income tax re- turns than any other city of com- parable size in the Mation, a report from the Internal Revenue Bureau revealed last night. Covering returns filed in 1939 for the year 1938, the bureau disclosed 113992 individuals here were in- cluded in this classification of rela- tively high buying power. The new total contrasted sharply with 110,726 in the previous year, 107,225 in 1936, 95,714 in 1935 and only 83,424 in 1934. In other cities, fewer returns were required and contrary to the trend here. most of them showed declines from the previous year and only moderate increases over 193¢ marks. Returns for 1934, 1937 and 1938 are given below for the District of Columbia, Baltimore, Boston, Buf- falo, Cincinnati, Milwaukee, Min- neapolis, New Orleans, Pittsburgh, St. Louis and San Francisco: Cincinnaty Milwaukee Minneapolis New Orleans 4 Pittsburgh ___ 40.757 Louis 46,799 u 6K 1 Ban Francisco_ 68,858 95,783 24,837 in Nearby Area. Also supporting the National Cap- ital's standing as a leading retail market, the bureau reported 24,837 returns filed in Maryland and Vir- ginia counties forming the immedi- ate Washington trading area. This is a larger territory than the estab- lished Metropolitan Area and is sometimes referred to as the 25-mile zone. The latest total for these nearby counties was well ahead of 22451 returns filed in the previous year nn;! was nearly double 12,836 filed in 1934. The greatest increases, of course, were evident in the closer sections, such as Prince Georges and Mont- gomery Counties, Maryland, and the Arlington-Alexandria section and Fairfax County of Virginia. Returns for 1934, 1937 and 1938 in the various nearby counties follow: MARYLAND. Prince Georges | Montgomery | Charles Arl-Alex. Fairfax Loudoun "~ Pr. William 22,451 Among the various communities listed in Prince Georges, Capital Heights returns totaled 139 against 1124 in 1937 and only 66 in 1934; Hyattsville returns reached 1341 against 1,181 in 1937 and 674 in| 1934; Laurel registered 401 against | 375 in 1937 and 247 in 1934; Mount | Rainer had 640 against 625 in 1937 | and 401 in 1934. In Montgomery County, Chevy | Chase returns totaled 2910 against 2,727 in 1937 and only 1,990 in 1934; | Rockville had 527 against 487 in| 1937 and 315 in 1834; Takoma Park | had 1341 against 1,223 in 1937 and only 724 in 1934. P against 2,852 in 1937 and 1912 in 1934; Arlington had 3,648 against 3311 in 1937. A comparable figure | for 1934 was lacking. Private Pay Rolls Gain. After lagging behind 1939 levels in January, private pay rolls in the District of Columbia edged above a year ago in February and regis- | tered a substantial gain over last year in March, the quarterly statis- tical report from the Unemploy- ment Compensation Board showed. Before inclusion of delinquents, the board reported a private pay roll of $18,667,120 for March with 157,300 persons employed. An estimate for delinquency raised the totals to $19,023,491 and 161,880. ‘These compared with $17,493,029 and 159,833 in March, 1939. The above figures do not include railroad employes who were shifted to the Railroad Retirement Board’s Jjurisdiction last July. An estimate for this group raised the March totals further to $20,002344 and 168,417 persons, against $18,471,883 and 166,370 in March, 1939, and $16,920,045 and 157,819 in March, 1938. Private employment and pay rolls for the last 13 months, excluding railroad employes, were reported as follows: 1039, October . November December 1940. Janusry rus; March 81,880 *Includes allowance for delinquency. $46,926,000 Paid in Month. Addition of previously reported Federal and District Government totals for March shows that ap- proximately 325,000 persons on pri- vate and Government pay rolls here received around $46,926,000 for the month, March estimates for the last three years in these two major sections are given below, with the grand totals: 1 1 66,370 168417 TOTAL. Because an unknown amount of delinquency is not included, the breakdown of March private em- ployment and pay roll figures is not comparable with complete totals for & year ago, but it shows the relative importance of major sections of pri- vate business here. Trade, including both retail and wholesale establishments, topped the list, with 50,563 employes receiving $6,253,468. Services came next, with 35527 employes recelving $3,208,- 15142. Construction was third, with In Virginia, Alexandria had 3,002 | T, 18463 employes receiving $1,885,615. Manufacturing and real estate es- tablishments were fourth and fifth. March employes and pay rolls in [y FINANCIAL. In Washington Than in Other Cities PERSONS FILING INCOME TAX RETURNS IN CITIES OF SIMILAR SIZE -Each Figure Equals 6,000 Tox Returns Washington teeeee te19t P14t 114t . San Francisco St. Louis [ Pittsburgh Baltimore +"Boston Milwaukee ;Cig,ci,nnati Minneapolis P11t (Based on 1938 Reports Filed in 1939) peeeeeeeeeeee T P19991 119111 P91099 9111 194089411 ana e 119411 BAROMETER OF BUYING POWER—The above chart, compares individual income tax returns filed in Washington and in other cities of similar size. the major classifications, excluding delinquency, follow: Construction __ Manufacturers Transportation Communication Utilities Trade Finance _ Insurance Real Estate *Combination Admin. offices _ Services 5 Professional Miscellaneous Total ——-- 157.300 S1R.66 *Combination of insurance, real estate, te. Toans, e 7,010 in Building. In the construction total was in- cluded building contractors with 7,010 employes and a pay roll of $694,102.87. The largest subdivision of manu- facturing was printing, publishing and allied industries with 6.562 em- ployes and a pay roll of $1,038,313.81. Transportation included street, suburban and interurban railways and bus lines with 3584 employes and a pay roll of $593,591.67. In the trade group, general mer- chandise retailers had 11933 em- ployes and a pay roll of $1,308,701.28, while food retailers had 7,636 em- ployes and a pay roll of $866.394.89. Apparel retailers had 5682 em- ployes and a pay roll of $551,399.04. Retail automotive establishments had 3270 employes and a pay roll | of $434,347.06. Under service, hotels, camps and lodging places had 5854 employes and a pay roll of $485633.23. Eat- ing and drinking places had 10,392 employes and a pay roll of $768,- 309.47. Fund Still Grows. ‘Taxes being paid by Capital busi- nessmen into the unemployment compensation fund continue to run far ahead of requirements, the re- port also showed. Because délinquent contributions were not included in the March | totals, the following table of nearly complete tax contributions and benefit payments for February pro- vided the best picture of the situa- tion in the various major classificy- tions of business: Contri- butions 846,660 A2.R21 Benefit Payments. Contract constr. $58.811.50 Manufacturing 11,2920 Transportation Communication Utilities rade Finance Insurance Real estate Combination Admin. offices Service Professional Miscellaneous Total ____ $493.765.58 $153.72 Clearings Report Cheerful. Providing the first statistics on May and five months of the year, a report on Capital bank clearings made cheerful reading. May clearings were the best for the month since 1929, while the five- month total was the best for the period since 1930. Capital clearings in May and the first five months of various year follow: 3 5 2 53 = o FFI [eTeTSToTONTTTY DPDDDDDODDD! BRBBRBDDD SBRIASHFRSE= 10130 D DO B DDAE DM 9.4705; 395.809.22 118.040.256.96 545.094.92! D. C. Collections Gain. Department store collections in Washington improved sharply over the preceding month and a year 2g0 during April, the Federal Re- serve Bank of Richmond reported. The Capitol stores collected 28.9 per cent of April 1 receivables dur- ing the month, against 275 per cent in the preceding month and 27.3 per cent in April, 1939. It was the best April mark since 1932, wass 00 | the exception of April, 1935, when the slightly better mark of 29.0 was recorded. The percentages of receivables col- lected during April in various years follow: Store S Department store stocks here at the end of April were 1.2 per cent above the end of the previous month and 4.8 per cent above a year 8go, the Richmond bank also reported. Inventories remained 2.7 per cent behind April 30, 1937, but with that exception were the highest for that date since 1930. They remained 47 per cent behind the comparable 1929 figure. The April index of department store inventories, using the 1929 month as 100, follows: 1. C. C. Approves Issue For Northern Pacific By the Associated Press., The Interstate Commerce Com- mission authorized the Great North- ern Railway yesterday to issue $20,- 000,000 of 4 per cent collateral trust bonds, the proceeds to be used toward retiring on July 1 of $28- 132,000 of St. Paul, Minneapolis & Manitoba Railway Co. Pacific ex- tension bonds. ‘The new bonds will be sold to the Reconstruction Finance Corp. at par, plus accrued interest. The remsind- er of the funds for retiring the St. Paul, Minneapolis & Manitoba bonds will be provided by the Great Northern. U. 5. Wheat Harvest Only Slightly Under 1939 Is Forecast Estimate Represents 34,000,000-Bushel Reduction By the Associated Press. CHICAGO, June 1.—The season’s first semi-official estimate of the size of the 1940 United States spring wheat crop today forecast a pro- duction of approximately 225,000,000 bushels, with the exception of the 1938 harvest, the largest since 1932. This estimate was made by C. M. Galvin, crop expert, who compiled a Nation-wide survey by Jimes E. Bennett & Co., coupled with Galvin's revised estimate of 495,703,000 bushels of winter wheat, a total United States crop this season of approximately 721,000,000 bushels was predicted. Conditions Improve. If Galvin's estimates materialize | this harvest would be only about 34,000,000 bushels less than the 1939 harvest and would give the United States a new crop in excess of do- mestic requirements for the fourth consecutive season. The forecast reflected materially improved crop conditions through- out the domestic grain belt as a result of near perfect weather the past few weeks. The revised winter wheat forecast was 55,000,000 bushels greater than Galvin's own estimate a month ago and 36,000,000 bushels above the Government's May 1 fig- ures. Galvin said the condition of spring wheat, which is just entering its growth period, is 88 per cent of normal compared with 71 per cent a year ago. Last year's harvest totaled 191,540,000 bushels. Rains Help Southwest. He forecast an oats crop of 1,050~ 0 S0 | 000,000 bushels, compared with 937,- | 215,000 last year, and a rye crop of 0 | 38.568.000 bushels, compared with his estimate a month ago of 32,140,000 and last year’s harvest of 39,249.000. Barley production was estimated at 336,000,000 bushels, compared with 276,298,000 a year ago. y The revised estimate of winter wheat indicates an improvement of almost 100.000.000 bushels since last fall when the crop was very poor due to the drought in the Southwest. Galvin said much of the late ger- minated wheat in the Southwest which a month ago gave little promise has benefitted from recent | weather. He estimated Kansas harvest at 16,648.000 bushels; Oklahoma, 36,- 680,000; Texas, 29,080,000; Nebraska, 23,220,000; Missouri, 23,867,000; Ohio, 39.521,000; Indiana, 28,614,000, and Illinois, 34,045,000. United Kingdom Faces Feed Grain Shortage By the Ascociated Press. The Agriculture Department re- ported yesterday that the United Kingdom, which usually imports half its requirements, faces a short- age of feed grains and other feed- stuffs for its livestock. ‘The British Ministry of Food, which controls the distribution of all feedstuffs, has announced, the department said, that it would be able to release to farmers about two-thirds of their total feed re- quirements. However, because of a priority given dairy production, some farm- ers have been able to secure con- siderably less than others. Lower Net Reported By Vick Chemical By the Associated Press. NEW YORK, June 1—Vick Chemical Co., manufacturing chem- ists, today reported net profit for 9 months ended March 31 of $2,- 546,685, equal to $3.66 a share on capital stock, compared with $2,- 709,524, or $3.87 a share, in the corresponding period a year earlier. Plants are in North Carolina and Pennsylvania. Little Prospect For Profit Seen In Arms Race By the Associated Press. COLUMBUS, Ohio, June 1.—A $500,000000 boom without much prospect of profit was predicted for Ohio industry today under Presi- dent Roosevelt’s national prepared- ness program. Don K. Martin, executive secre- tary of the Ohio Manufacturers’ As- sociation, estimated that this State would recelve “upward of 10 per cent” of the proposed $4,600,000,000 defense expediture. Certain specialized industries, in- cluding machine tools and airplane and rl‘ummouve p;hru. lh;::y have experienced & ‘“phenomenal” pro- duction-increase, Martin added. i Big Defense Drive Expected fo Bring Industrial Boom Quick Jump in Steel Output Indicates Coming Rush By FRANK MacMILLEN, Associated Press Business Writer. NEW YORK, June 1—Business charts pointed today to & war in- dustry boom under the lift of Uncle Sam’s multi-billion dollar defense program. Steel centers felt the initial im- pulse of the greatest arms spending drive since World War years as consumers hurried to accumulate metal before Government orders occupy mill capacity. Many mills, trade reports said, ‘planned to step up operations | rapidly this month. Some observers suggested the busiest summer of.. steel-making in a decade was in prospect if the buying rush con- | tinues and Washington's expanded arms program gets going soon. Industrial barometers were on the - rise as result of a quick jump in steel production and preparations in various industries for the antic- ipated boom in war equipment manufacture. Indications Federal appropriations for the fiscal year starting July 1 may top $10,000,000000 in the heaviest Government spending since 1917-18 centered business attention on Washington efforts to speed the defense plans. Eclipsed by the proposed $5,000,« 000,000 defense outlay were the New Deal’s “pump-priming” campaigns which absorbed the interest of financial circles in recent years. Markets Are Inert. Speculative markets, nevertheless, were strangely inert in contrast with the excitment stirred by some Gov- emment spending announcements of previous years. . Resting after the bad spill on | news of the Allied defeats in the | Low Countries and Northern France, security and commodity markets | ended a relatively quiet week today | with little outward display over the impending huge Federal expendi- tures and trade forecasts of a boom | in heavy industry. | Brokers said the speculative urge to buy in expectation of an industrial pickup was restrained by such cone- siderations as these: (1) Prospects of heavier general taxes to help pay the mounting arms | bill and the belief levies eventually may be imposed on war profits. | . (2) Threat of Italian entry into | the war and closing of the Medi- terranean to trade, which would draw tighter the blockade of the European continent against transe Atlantic commerce. (3) Dislocation of domestic as well | as foreign trade in the shift to & war economy, already evident in the }slnwmg of wholesale and retail buy= ing in some markets. Cited as example of the varied war-time aspects of business was | curtailment of cotton textile manu- | facturing while steel and other war | industry barometers climbed. Textile Demand Lags. Textile demand, trade reports | said, has slackened since the May | break in farm prices, including cot- ton, and the transfer of emphasis to war industries. |~ The drop in cotton manufacturing, however, was more than offset by expansion in steel, electric power and home building components of the | Associated Press index of industrial activity. Up for the fourth straight week, | this yard-stick now stands at 99 per | cent of the 1929-30 level, the highest | since mid-March, compared with the April low of 936. A year ago | it was 83.3. | Steel operations—up from 60 to around 77 per cent of capacity on the belated spring rebound—ap- peared headed for another rise. Mills in the Chicago district werq reported to have scheduled oper: tions for the coming week at above 85 per cent of capacity, compared with 80.6 at the start of this week, making the sixth week of advance. Increased Allied buying of war supplies in the United States, to- | gether with the diversion of steel demand to this market from non- combatant nations, brought in the heaviest flow of orders since the short-lived rush of war buying last September. In addition mills were said to be building up their own inventories to prepare for the full force of United ! States and Allied arms needs, ex- | pected to become the major influence | in heavy industries by autumn or early next year. New Equipment Needed. | Tool and motor making centers | around the Great Lakes and in New England, shipbuilding communities | along the seaboard and aircraft manufacturing sectors also adjusted ! plans to the expanded defense pro- { gram, requiring hundreds of millions | of dollars in outlay for factory equip- ' ment and materials. Much of the country’s reserves of idle men and idle dollars, it seemed, would be called to work to equip the | naval and military forces. ‘While Congress studied proposals for increasing taxes immediately to ! pay part of the arms cost, banking circles looked for resumption of | large-scale Treasury borrowing in the open market to meet the indi- cated wide deficit in Federal outgo and income. An undiminished inflow of gold and capital from abroad, partly to pay for Allied arms purchases in this country, swelled the unprece- dented stores of idle credit available for Treasury use. Commodity men said reserves of most industrial materials were ample for prospective needs of the defense program. But higher shipping costs and disruption of nqrmal trade channels moved many TS to cover future requirements on imported staples, such as rubber and wool. Retail trade reports said sales of motor cars, particularly, had slowed since the May collapse in stocks and | farm commodities. The decline in grains was a blow to the pocketbooks of wheat growers in the Southwest, who have started to harvest the new crop. From a longer range, merchants recognized the billions for armament would mean larger pay rolls in many i communities working directly or in- directly on the implements of war. 350 Tons of Lead Sold NEW YORK, June 1 (P.—St. Joseph Lead Co. reported 100 tons of Southeast Missouri pig lead sold yesterday at $4.85 per 100 pounds East St. Louis, 175 tons at $5.05 New York, and 175 tons at the New YukJ average.