Evening Star Newspaper, January 25, 1942, Page 42

FINANCIAL. Assets of Loan Groups Reach New Peak Here Associations Reveal $14,805,762 Gain During Year By EDWARD C. STONE. Member associations in the Dis- trict of Columbia Building and Loan League had combined resources of $172,338.992 on December 31, 1941, an all-time peak, and an increase | of $14,805,762 over the previous year, F. Willson Camp, league secretary, reported last night. Nearly a mil- lion gain was registered in Decem- ber, he stated. Mortgage loans outstanding were shown to be $162,363,269, up $13,626,- 230 over the comparable month in 1940. Despite construction restric- tions based on war priorities, loan activity exceeded that of December, 1940, a total of $4,267,050 in real estate loans being handled. Member share accounts reflected a healthy gain, rising $11.679,357 to a new high of $149,466,548. However, a sharp decline in new share ac- counts was noted during the month, while close-outs were slightly greater. This is attributed largely to the emphasis the members are put- ting on the sale of Defense bonds. All the associations have qualified with the Federal Reserve Bank to handle the bonds and many are us- ing newspaper advertising to urge their purchase. Sales have been very heavy. The league itself is also re- leasing newspaper advertising copy urging the public to buy the bonds, Mr. Camp added. ’ Potomac Power Sales Soar. Reaching the highest mark in the history of the company, kilowatt hour sales of the Potomac Electric Power Co. in the District of Co- lumbia in 1941 amounted to 1,008~ 480,174 kilowatt hours against 856,- 493,937 kilowatt hours in 1940, a sharp increase of 151,966,237 kilo- watt sales, or 17.74 per cent, officials announced yesterday. Railroads and railways used 103,- 239,057 kilowatt hours, which was 13,616,117 more than a year ago and an increase of 15.19 per eent. Public street and highway lighting, owing to the present policy of dimming the lights as a war measure, used a little less electricity than in 1940, & drop of 134 per cent, the report shows. All other sales, however, were much higher, reaching 880,050,171 k.wh, an increase of 18.71 per cent over the 1940 total, officials said. Truck Owners Book Eastman. 1. C. C. Chairman Joseph B. East- man, recently appointed director of Bonneville Bid For Utilities Is Reported By the Associated Press. NEW YORK, Jan. 24.—The Herald Tribune said today that Dr. Paul J. Raver, administrator of the Bonne- vile Power Administration, has been in New York negotiating for the acquisition by Bonneville and other public agencies of several privately owned electric utilities in the Pacfic Northwest. Among companies involved in the conversations, the Herald Tribune said, was the Puget Sound Power & Light Co. ‘The newspaper added that while Dr. Raver was unwilling to divulge the full scope of his negotiations, he let it be known that the price in- volved for the purchase of Puget and the other companies would be abcut $100,000,000, probably to be financed by the sale of revenue bonds. Puget Sound Power & Light Co., a subsidiary of Engineers Public Service Co., sells power at retail to 44 communities and at wholesale to 16 in Central and Western Wash- ington. In some of these counties are so-called public utility districts which have the power to condemn the company’s properties and issue obligations in payment thereof. LIl Auto Factories Making Arms or Being Retooled Changes Accomplished At Less Cost Than In Other Industries BY the Associated Press. DETROIT, Jan. 24—Virtually all the automobile industry’s plants now are being utilized or will be in use for the production of war materiel when necessary retooling is com- pleted, the Antomobile Manufactur- ers’ Association reported today. The statement said that in obtain- ing war production from the auto- mobile industry, the Government has had to invest only half as much in new facilities as was spent for plants and tools in the heavy goods industries as a whole. ‘War Werk S Asserting that eight out of every 10 existing plants of the motor in- dustry had war work in progress or assigned to them at the end of November, the association statement went on: “While a few spectacular new plants producing tanks, airplane en- gines and guns have caught the public’s attention, actually the auto- mobile industry had 150 plants pro- ducing war goods or being re- defense transportation by President | y,164” for such work on November Roosevelt, will address a luncheon meeting of private motor truck own- ers at the Willard Hotel Tuesday. His appearance will be a feature of the third annual meeting of the National Council of Private Motor ‘Trust Owners, Inc. Private truck owners, operating 85 | per cent of all trucks in the United States, are faced with drastic reduc- | tion of many of their delivery and | transport services by tire rationing | and priorities rulings. Plans will be formulated for efficient and eco- nomical use of existing equipment | to continue essential civilian serv- ices while rendering all possible aid to the prosecution of the war. Also scheduled to speak are John L. Rogers, who will head the Motor ‘Transport Division under Mr. East- man; Arthur C. Butler, manager of the Motor Truck Division, Automo- bile Manufacturers’ Association; ‘William L. Quinlan, general counsel, American Bakers’ Association; W. | Relfance Electric Plans H. Ott, jr, Kraft Cheese Co.; Gavin ‘W. Laurie, Atlantic Refining Co., and Fred Brenckman, Washington representative of the National Grange and president of the council. River Line Declares Extra. Directors of the Norfolk & Wash- ington Steamboat Co. have declared the regular semi-annual dividend of 2 per cent on the outstanding stock and also an extra dividend of 4 per cent per share, it was announced yesterday. Both are payable Feb- Tuary 16 to stockholders of record February 6. The company had an excellent year’s business. Directors of Washington Railway & Electric Co. have voted the reg- ular quarterly dividend of $10 per share, payable February 28 to stock- holders February 16, it was reported yesterday. During 1941 the company paid the regular $40 dividend and a $5 extra. The stock is now quoted on the Washington Stock Exchange at $580 per share bid and $680 asked. Prices Strong on Exchange. Capital Traction 5s were strong on the Washington Exchange yes- terday, scoring a new 1942 high. ‘Two $1000 transfers took place at 104%. The bonds, which are lead- ing the exchange in activity, opened the year at 103. Washington Gas Light common ‘was strong again yesterday, record- ing three sales at 181, the new high mark for 1942 reached during the week. Terminal Refrigerating & Warehousing Corp. sold at 51 and Peoples Drug Stores common again came out at 21%. Capital Transit registered a small sale at 19%, which is the highest price at which the stock has sold in many years. 600 Expected at Banquet. Martin A. Cook, chairman of the ennual banquet of the District Building and Loan League, reported yesterday that 600 members and guests are expected at the Mayflow- er Hotel next Saturday night. Entertainment features will be di- rected by J. Hawley Smith. Final plans will be made at Tuesday's (See LOANS, Page C-9.) Bond Averages 20 10 10 10 et g "5 ki 0 Yesterday.. 64.3103.41005 439 Prev. day_. 64.110341005 44.0 Month ago. 58.5103.1 994 413 Year ago __ 64.11049101.1 409 1941-2 high 66510541022 512 1941-2 low. 58.3102.6 989 38.0 1940 high. . 61.4105.9100.7 535 1940 low._. 483 989 903 35.1 10 Low-Yield Bonds. ‘Yesterday 1125 Prev. day. 1126 M'nth ago 1122 Year ago.113.7 41-42 high 115.1 41-42 low._ 112.1 30. At that time the automobile output was running at a rate 50 per cent below the previous year.” Car Output Cut. Automotive News said today in its weekly survey of the motorcar in- dustry that output for this week totaled 72,317 cars and trucks. This comoares with 73,070 units reported by the trade paper for last week and 120,070 this week a year ago. The survey credited General Mo- tors with 26333 units this week, compared with 28,224 last week; Chrysler with 18,175 this week, against 18,018 last week, and Ford divisions with 12,375 cars and trucks, compared with 12,322 the previous week. Production of the other com- panies, the publication said, re- mained steady, with Willys turning out war materials only. To Sell Preferred Stock By the Assoclated Press. CLEVELAND. Jan. 24—Reliance Electric & Engineerine Co. plans to sell 7500 shares of $5 convertible preferred stock and 37,500 shares of $5 nar to restore cash reserves and working capital. it informed the Securities end Exchange Commis- sion in a registration statement today. The common shares are initially reserved for conversion of the pre- ferred shares, and principal under- writers include Hayden Miller & Co. of Cleveland. The company said it would apply $500,000 to restore cash reserve-, en- other $200000 to restore working capital and would add the be'ance, if any, to general funds. Re'iance znnu(acturu motors and genera- TS, Armour Chief Hails Good Sales, Profits By the Associated Press. CHICAGO, Jan. 24—George A. Eastwood, president of Armour & Co,, told stockholders at the annual meeting yesterday that the com- pany’s business since November 1, beginning of the new fiscal year, has been good beth in volume and profits. He expressed hope that current dividends can be m=intained, but whether operations this year will permit any payments of back divi- dends remains to be seen. One new director, John E. San- ford of Atlanta, and four others al- ready on the board were elected for three-year terms. THE SUNDAY STAR, WASHINGTON, D. Textile Plants Dominated by War Needs Further Expansion In Military Orders Is Predicted Speclal Dispatch to The Star. NEW YORK, Jan. 24 —Textile ac- tivity, as measured by fiber con- sumption, set a new record in 1941, with an increase of about 32 per cent over 1940, it is pointed out in a survey by the Standard & Poor’s Corp. The cotton, wool and rayon divisions all established new highs, with the greatest gain shown by wool, consumption of which in- creased about 60 per cent over the year before. From now on operations, especial- 1y in the cotton and woolen divisions, will be mainly influenced by the extent of Government orders for war needs. As our military forces are increased by the addition of mil- lions of men, Government needs for all kinds of textile products will expand considerably. The Govern- ment Procurement Division has al- ready stepped up orders for textile geods, and further acceleration in the pace of new buying is in pros- pect. In fact, demand for military purposes will be so great as to cut down the amount of goods that will be available for civilian use. Under existing conditions, the textile industry is assured of a high rate of operations for some time to come, but the experience of the various divisions will vary because of raw material problems and Govern- ment allocations to assure adequate output f6r military needs. Operations to Climb. Because of the extremely large supplies of raw cotton in this coun- try, cotton mills should not be troubled by raw material difficulties and they are in a position to operate to the full extent of available ma- chinery and man power. Indications are that the industry will be called upon to maintain op- erations at the highest levels pos- sible to fill Government orders and regular civillan demand. More- over, a larger part of operations will be concentrated in the production of the heavier cotton constructions, such as ducks, osnaburgs and den- ims, which will require greater use of raw cotton in their output. Gov- ernment needs for sandbags alone will require a large volume of cloth, a good part of which must be made from cotton because of the uncer- tain supplies of burlap. Efforts are being made to have the industry operate at maximum capacity by adoption of a 24-hour day, T-day week basis. Such a schedule presents difficulties, how- ever, because of the unbalance of machine equipment, the strain on machinery resulting from continued operation and the lack of available ekilled labor. It is probable that such a rate of operations will not be witnessed for more than tem- porary periods, but it is expected that sufficient expansion will take place to lift operations to record levels in coming months, Price Ceilings Extended. The price ceiling placed earlier on certain cotton construetions have been extended to cover numerous other items, including such finished goods as towels, table cloths, bed sheets and pillow cases. While many items are based on a sliding scale arrangement under which prices will vary with changes in raw cotton prices, others are limited to the highest sale price obtaining during the November 1-December 6 period, pending more detailed schedules. The present price basis provides reasonably good margins under ex- isting conditions. Any later in- crease in costs, particularly labor, however, would narrow margins un- less compensating adjustments in selling prices were allowed. ‘Wool Curbs Likely. The high rate of wcol consump- tion in the past year has necessitated large imports to meet domestic mill requirements. So far, imports have been sufficient to meet all needs and provide a backlog of stocks for medium term requirement. The war in the Pacific, however, and the further tightening in shipping facilities threatened, have caused | some doubt regarding the adequacy of future supplies to meet the sharp expansion in demand for woolen goods for military purposes. War Board Jobs Given to Reed, Matthiessen By the Associated Press. Ranking jobs in the new war the Hawallan Pineapple Co. Reed will head the industrial branches in the division of industry operations, and Matthiessen will direct the priorities program in the same division. The appointments were made by Donald M. Nelson, W-. P. B. chairman. Reed, who has been connected with the defense work here since last February, was a deputy director of the O. P. M. materials division, and a special assistant to Director Gen- eral Willlam 8. Knudsen in charge of industrial branches. His home is in Rye, N. Y. Matthiessen, who also _has been here about & year, was Reed's as- sistant, Late Buying Lifts Grains Close fo Recent Peaks Prices Near Five-Year Highs Established Earlier in Week By FRANKLIN MULLIN, Associated Press Market Writer. . 24—A late rush to buy today lifted grain futures prices back to near top levels for the past five years, reducing losses in- flicted by profit taking since these peaks were established earlier in the week. at the day's highs, wheat closed %-1 cent higher than yesterday, May $1.327%-133, July $1.3415-%; corn %-% up, May 89%- %, July 91%-%; oats unchanged to % up; rye 1%-13% higher, May 89%-%; soybeans 313-3% higher, May $1.99-1.98%; and lard 3 higher to 3 lower. Soybeans had registered gains of more than 4 cents at one time but about a cent was shaved away by late profit taking. Rye contracts established new highs since 1937 and other grains were only fractionally below the five-year peaks established yester- day. July soybeans hit a top of $2.01%, within % of the all-time high posted for this commodity last Sep- tember. Short Sales Covered. Last-minute buying of processing interests and professional traders, many of whom were covering prev- {ous short sales for the week-end, ac- counted for most of the market's strength. However, increased war demands for feed grains, oil pro- ducing crops and those ylelding sugar and alcohol were the funda- mental bullish factors. ‘Wheat prices rose about 2 cents this week, corn almost 4 cents, rye 5 cents and beans 10 cents. Since Pearl Harbor wheat has gained 11 to 12 cents, corn 9, oats 6 to 7, rye 18 to 19 and soybeans about 30 cents. Traders restrained buying en- enthusiasm to some extent because of likelihood of continued Com- modity Credit Corp. sales of old stocks of wheat and corn due to the fact that present market prices are above minimums at which this grain is offered for sale. Large sales of Government grain were reported at some terminals but some traders placed a bullish interpretation on this because of evidence that the C. C. C. is succeeding in disposing of ever-normal granary stocks with- out seriously depressing prices. Big Supplies Sold. During the week ending January 17 the Government sold about 13,- 350,000 bushels of corn and 11,596,~ 000 bushels of 1939-40 wheat, leav- ing 110,652,000 and 139,761,000 bushels respectively still in its pos- session. Grain men pointed out that more than half of the remain- ing C. C. C. supply of corn has been earmarked for conversion into alcohol and, because prices are well above original loan rates at which 1938-39-40 corn now under seal was stored, little of this grain is ex- pected to be turned over to the Government. Grain range at principal markets today: Accordingly, it has been ordered :‘“ Lo i that wool consumption by any manufacturer be restricted for the first quarter of 1942 to 80 per cent of the quarterly consumption rate | Winni The order | o cae. for the first half of 1941. also 4imits the amount of new wool used for civilian goods by manu- fecturers of worsteds and woolens to 50 and 40 per cent of their first- half 1941 consumption rate. Both these percentages are the maxi- mum allowable, and they may be much less, depending upon military requirements. No limit is placed on consumption by a producer filling only military requirements. ‘While this order limits the amount of woolen goods that will be turned out for civilian purposes, no definite measurement of the actual curtail- ment cen be made as yet. Pro- ducers working on civilian goods may partly offset this limitation on new wool usage by greater utiliza- tion of reused and reworked wool (See TEXTILE, Page C-9.) By the Associated Press. ‘NEW YORK, Jan. 24—If you are a housewife, an industrial worker, a farmer, or an employer, you may use definite methods to help curb infla- tion, according to the advice of Prof. John M. Clark of Columbia University. Prof. Clark, in a pamphlet pub- lished by the Public Affairs Com- mittee, Inc., suggested: Housewives—Study the require- ments of a healthy diet. There s no need of undernourishment, but don’t waste foods or other scarce mate- rials, and don’t hoard them. Workers and Farmers—If you are “getting a break” for the first time in some years, don't try te push 1940 high114.6 1940 low. 1084 Economist Advises All Groups To Help estrict Inflation ployers are doing it. Have confi- dence in the readiness of the Gov- ernment to do its best to make right any reel injustices resulting from its regulations. If your income is medium sized— If your taxes hurt, remember there are a lot of people who have had too little for a long while, and it may be your turn to go without a few things you would like. Save up in advance to pay your taxes, end buy some Defense bonds be- sides. S Increased taxes, Prof. Clark said, are designed “to save people from wasting their incomes in driving up prices by future bidding for goods that are not. there. If the tax col- lector does not take the money, in- creased prices will—in a more in- jurious way.” ‘Taxes have not been planned to deprive people of goods, Prof, Clark added. “The R 81% 813 Chicago Min'polis___ Fansas City Chicago Kansas City JUL! 3 b Chicago Kansas Citr 5% MAY OATS— is Chicaro 80% 5% i il - A R 5 Chicago Cash Market. Cash_wheat brices today_ were quoted frm; basit. steady: Teceiots. 10 cars. Corn. - eaiy: o A. P. Indust Reaches New High By the Associated Press. NEW YORK, Jan. 2¢—The Asso- ciated Press index of industrial ac- tivity climbed to 144.7 this week, a new 1941-2 high. A month ago the measure stood at 1434 and a year ago at 1232. Chiefly responsible for the rise was a greater-than-seasonal gain in carloadings. Electric power pro- duction declined, although less than seasonally. expected. Steel output showed a slight decrease. Components, adjusted for normal variations, compared as follows: Latest Prev. Year week. K % e weel Steel mill activity . 137.4 137. Elec. power produc. h155.5 154. gfié Total carloadings . g X X Composite index ~h1447 1424 123.2 b New 1941-2 highs, Metropolitan Reports Drop in Death Rate By the Associated Press. NEW YORK, Jan. 24—The Met- ropolitan Life Insurance Co. sald today its records showed a 1941 death rate of 7.4 per 1,000 persons— the lowest ever attained by the company’s industrial policyholders. As a result, the announcement said, the life expectation of these insured persons was advanced to 63.4 years, a gain of six months over C, Carrier Stocks Hold Atfention =2 At Week's End Broad Demand Laid To Rate Hopes and Tax Outlook WHAT STOCKS . By BERNARD 8. O'HARA, Associated Press Pinancial Writer. stock market and enabled the list to emerge from s desultory week pointing selectively upward. Nothing much of an inspirational partly duplicate the fare boost with a freight rate increase and to expects- tions mounting revenues and traf- fic would put the long-suffering roads well in the black. Another t brought out in ‘Wall Street for the .| division was that, if & week ago. Among mnew 1941-2 highs were | those of Santa Fe, Chicago Great ‘Western preferred and Gulf Mobile & Ohio preferred. Common and preferreds of Nickel Plate, South- ern Rallway, Pere Marquette and Erie were well out in front through- out, On the advancing side were Great Northern, Southern Pacific, Penn- sylvania, New York Central, Amer- ican Telephone, Standard Ofl (New Jersey), Texas Co., Allied Chemical, J. C. Penney, North American, Con- solidated Edison, Kennecott and In- ternational Harvester. Shares of South Porto Rico Sugar and Fajardo Sugar were up around a point each as Washington report- ed threats of a serious shortage of the staple probably would result soon in Federal rationing to con- sumers. United - States Gypsum slipped, along with United States Steel, Union Carbide and Glenn Martin. Improve on Curh. In & slim curb improvement was rezistered for Cuban-Atlantic Sugar, American Gas, Bell Aircraft, Repub- He Aviation and Lehigh Coal. Vol- ume here approximated 48,000 shares versus 55,000 last Saturday. . The big board inclined to mope during the week, daily turnovers be- ing among the smallest since last October. Tax worries and fears of upsets in the far Pacific conflict, JANUARY 25, FINANCIAL. 5 33 1938 1939 1940 1941 A. P. MARKET AVERAGES—Based on latest Associated Press statistics most economic barometers showed higher trends last week, as illustrated in the above chart. Stocks receded some- what, while bonds edged forward. Commodities rose for the fifth consecutive week to the highest level since April, 1937. Industrial activity pushed ahead to a new 1941-2 high. Cotton Market Balks Affer Advance fo 12-Year Highs Futures Close 5 Cents A Bale Lower to 15 Higher at New York By the Associated Press. NEW YORK, Jan. 24—Cotton fu- tures balked today after an ad- vance that has lifted prices to 12- year highs. The market closed 5 cents & bale lower to 15 higher. Recent heavy trade buying ta- pered off and a note of caution was introduced by postponement of con- gressional action on the compromise price-control bill. The market lost as much as 60 cents a bale at one time, but came back when mill buying was attracted by the lower levels. Port receipts Friday, 9,881 port stocks, 3,325,515, High. bales; combined with enemy submarine at- | Beentter tacks off the Atlantic coast. served to keep many ordinarily bullish cus- tomers in the background. As a matter of fact, the rails were the only group to finish the week with | tonseed an average gain. Prices generally were a shade bet- ter Monday but made no progress Tuesday. Rails took a rest Wed- nesday in lower ground and the re- mainder of the market suffered its | 32 widest retreat of the week. Carriers came back Thursday on news the I. C. C. late Wednesday had granted 2 10 per cent passenger tariff hoist, but even then they were far from buoyant. The drifting market firmed slightly Friday without much stim- ulation from the news budget. Lewis Loses Appeal In Utilities Case By the Associated Press. CHICAGO, Jan. 24.—The United States Circult Court of Appeals yes- terday upheld Federal Judge Wil- liam H. Holly'’s order last May 15 denying Prank J. Lewis, Chicago financier, permission to file a peti- tion seeking to require that the Central States Utilities and the Central States Power & Light Corp. be sold to him for $1,600,000. Lewis, chairman of the Federal Reserve Bank of Chicago, had al- leged that a contract for such a purchase was made in December, 1939, between himsef and the Utilitles Power & Light Corp., a bankrupt concern which the Ogden corporation succeeded. ‘The Circuit Court of Appeals ruled that the District Court had no ju- risdiction because a purchase by Lewis was not pertinent to the U. P. & L. reorganization. Consum- mation of the sale was dependent upon approval from the Securities and Exchange Commission, which never was obtained. U. S. Lead Production Up Slightly in Month BY the Associated Press. NEW YORK, Jan. 24.—United States production of lead in De- cember jumped to 57,181 tons from 48,930 tons in November but still was below output of 61906 tons in December, 1940, the American Bu- reau of Metal Statistics said today. Stocks on hand at the end of the ber. Shipments in December, 1940, totnl_d 56,755 tons. New Haven Equipment Issue Is Approved B the Associated Press. ‘The Interstate Cottonseed OIl Only stragsling trade developed in cot tures today as prices held at few hundredths of & cent & ofl i :oun" I of Federal price ccilines,. The mars et closed .01 of & cent lower on turn-over of only three contracts. Traders wanted to hear more o ing pri legislation before Solites ®or "1 cents Tt s il o foss B 53.050; " July, " 13.955; ~ Septem- New Orleans Prices. RLEA] . 24 (P.—Cotton o P today on trad futures advanced ' here buying and closing prices were steady, to 6 points net higher. 1‘9‘]6 llg'!?ll Marcn 5 929 1912 Yoy - 1933 1945 186 e s e Cottonseed ol closed steady. prime, summer, yellow, unquoted. Prime, crude. 12.50n. January, 13.60b: March. 13.65: May, 13.67; July, 13.60b; Septem- , 18.60D. h“I’I Nominal. bBid. New Orleans Coffee House Is Opened By the Associated Press. NEW ORLEANS, Jan. 24¢.—Recog- nizing New Orleans as the “most important coffee market in the United States,” the Brazil National Coffee Department is opening a lo- cal office here, Eurico Penteado, financial attache of the Brazillan Embassy in Washington, announced yesterday. Penteado introduced George Duart as head of the local office at a luncheon honoring the two South American visitors, given by the New Orleans Board of Trade and New Orleans Green Coffee Association. Sales of Domestic Fleece Wools Slow By the Associated Press. BOSTON, Jan. A’:fl ‘c‘\’xlnt‘w)m;"k‘{s Department of ure) —The et et daring th Iass week. €] quief 3 mew sales of fine combing Ohio delaine were made at 45-47 cents, in the grease. Graded one-half blood staple combing fleeces were quoted at 46-48 cents, in the grease. Graded three-eighths and one- quarter blood bright wools had some call at 51-52 cents, in the grease. Chain Store Volumes 20 Per Cent Larger During 1941 Mail Order Concerns Lead Despite Some Lag Late in Year Special Dispatch to The Star. BOSTON, Jan 24—Sales volume in the chain store industry, on the basis of the reported figures of 31 of over 20 per cent in the calendar year 1941, as comrpared with the year 1940. ‘The monthly compilation released by Childs, Jeffries & Thorndike, Inc., indicates sales of this par- ticular group of companies, repre- senting $4532,690281 in the 12 months ended December 31, com- pared with a volume of $3.757.417.- 116 for the identical companies in the previous year, an increase of 20.6 per cent. The mail order group, despite some slowing down late in the year in the phenomenal rate of increase shown earlier, led the field with a gain for the year of 26.6 per cent. The apparel group was not far be- hind with a sales advance of 249 per cent. Every group in the total showed an increase in excess of 10 per cent. The compilation also shows sales ¢ | for the month of December alone, and clearly indicates that the Christmas shopping season was most satisfactory for this type of merchandising. Gains for the dif- ferent groups in the field, compared with December of 1940, ranged be- tween 14.7 per cent for the drug chains and 274 per cent for the grocery chains. The variety group, 5%% | for which the Christmas season is particularly important, showed an increase qf 184 per cent, the 13 companies which comprise this di- vision in the compilation reporting aggregate sales of $245,913.983 for the month of December, 1941. The detailed compilation follows: DECEMBER. 1041 - ST 85,030,222 16,924,085 12,040,19 Variety Mail order Grocery - Avparel 0 Shoe = Drus - Total ____ $591,513.750 $488,131,033 TWELVE MONTHS. 0083 e 31,145.3 Mail orde Grocery Apparel Shoe er Drug - Total __. $4,532,690,281 $3,757,417,116 Tax Note Redemptions Start at Treasury By the Associated Press. The tax notes which the Treasury began selling August 1 to persons and corporations wanting to lay aside money for taxes are beginning to come back to the Treasury for redemption. Out of the $2,534,605,675 sold, $9,723,675 have come back in pay- ment for taxes and $9,110,350 have been turned in for cash. Redemp- tions, however, have barely started, and on about March 16 a large per- centage of the notes outstanding are expected to be turned in for income taxes. U. S. Steel Units Set Records %¢'In Ore Output a nd Shipments nage record compares with a move- ment of 18,713,382 gross tons in 1940 and the previous record typical companies, showed a gain| 0f Buying Rush; Results Feared Both Retailers and U.S. Officials Face New Supply Problems By FRANK MACMILLEN, Wide World Business Writer. NEW YORK, Jan. 24—The coun= try, for the second time in six months, is 1 the grip of a wave of buying in retail stores and both merchandisers and Government of- ficials are worried about some of the likely consequences. The drop in store business after Christmas was brief and less than normal and within the last two weeks a strong buying tide has set in and is embracing not only poten- tially scarce goods but nearly every- thing Mr. and Mrs. Householder buy. The experts call what is going on a “consumer inventory” problem, which means only that Americans are on a buying spree and that a substantial part of what they are | buying is going into the pantry, the | clothes closet, the tool chest and a dozen other home hideaways and not into immediate consumption. In normal times many of these goods, ranging from canned foods and hand tools to shoes and sugar, still would be on merchants’ shelves, not destined actually to be used for weeks to come. Covers Wide Field. This sweep of money is flowing into more kinds of things than the wave which hit the stores last Au- gust and September, but, retail men say, it seems to have a less “pan- icky” quality than last summer's episode. The character of things being bought, except sugar, pineapple | Juice, spices and a few others, in- | dicates rather a planned stocking | of things that may be scarce or of | inferior quality later, retailers re- ported. But, they pointed out, the un- usual buying has caught many re- tallers off balance, creating prob- lems for them and their suppliers. *And, if it continues too long, it may bring a Whole host of price and civilian supply questions to Leon Henderson's division of the new War Production Board. Merchandise experts had been reconciled for months to the scarcity bound to develop in many kinds of “hard goods” as war drained the supplies of metals, building supplies and similar things. The hope they express now is that “soft goods,” foods, clothing, shoes, metal notions of many kinds, hot- water bottles and household rubber goods, drugs, radios and soap, can be marketed in a sufficiently orderly way so that there is a fair chance of keeping supply somewhere in line with demand and of avoiding the | “artificial” shortages which come when people buy things they may not need for months. - But recent trade reports indicate it is exactly this sort cf merchandise being taken from the shelves. Difficulties Needless. The resulting shortages, often | temporary, create needless difficul- ties both for merchant and cus- tomer, it was pointed out. Trade journals in recent weeks have emphasized repeatedly the role the merchant ought to play in dis- couraging customers—even good ones—from buying things they do not need. The sugar industry, from refiners through wholesalers to retailers, has been developing an informal ration- ing in which each seller is expected to keep his customers to a reason- able relationship to their past needs. Procedures have varied considerably from area to area and store to store, it was said. A Government ration- ing system is acknowledged to be in preparation. But, even considering sugar as a more or less isolated case of con- sumer buying “gone wild,” the gen- eral implication of a country-wide dash to the stores is disturbing, businessmen said. Business Week said today: “In an orderly, unhurried market, the supply of necessary consumer goods * * * would be, if not plenti- ful, at least sufficient to go around. “But the current scramble may reduce store inventories so sharply that the stores themselves will be rationers of goods—picking and choosing their best customers—and the temptation to raise prices will be hard to resist.” f Canada Reported Weighing : | Higher Price for Wheat BY the Associated Press. QOTTAWA, Jan. 24 —~Wheat, prob- lem child of a dozen sessions, haunted parliamentary corridors today. The government was understood to be giving consideration to pro- posals tthe 70-cents-a-bushel initial price paid by the Canadian Wheat Board on 1941 wheat would be in- creased to $1 in 1942. EDMONTON, Jan. 24 (#).—The United Farmers of Alberta Conven- tion last night approved resolution requesting the Dominion govern- ment to close the Winnipeg Grain Exchange and “make provision whereby all grain will be handled through the Canadian Wheat Board or similar organization.” Autocar Votes Dividends ARDMORE, Pa., Jan. 24 (Special). —Dividends of $1 a share on the common and $3 a share on the pre- ferred stock of the Autocar Co. have been declared by directors. Both dividends will be paid on February 16 to holders of record February 5. Stock Averages 1. rilhs. otf. 620 Netchange. +.1 +.3 +.1 +2 Yesterday.. 53.7 17.1 Prev. day.. 538 168 Month ago. 524 13.6 Year ago 614 174 1941-2 high 639 19.0 1941-2 low. 517 134 1940 high . 742 205 1940 low... 523 13.0 60-Stock Range Since 1927: 1938-39. 1933-37. 1927-20. High 54.7 753 1871 Low ... 337 169 613 (Complled by the Associated Press.)