New Britain Herald Newspaper, October 22, 1921, Page 11

NEW BRITAIN DAILY HERALD, SATURDAY, OCTOBER 22, 1021, e e Fina n cial WALL STREET STOCK EXCHANGE REPORTS Rails were the only backward issues in the further rise of prices on the stock exchange today. equipment featured the rise at treme advances of 1 to 5 points. In- dependent steels, shippings and to- baccos and miscellaneous issues were 1 to 2% points higher. The specu- lative. character of the market was evident however from the sharp re- versal in the later dealings. Mexi- can Pet. reacted almost 4 points, ‘which more than cancelled its gain. The closing was irregular. Sales ap- proximated 400,000 shares. Bonds, including government issues, were steady, ex- High 25% 130 9% 91% . 36% Low Close 255 128% 9% 91 36% 51% 353% Am Tel & Tel. 10814 Atc Tp & S F... At GII & W I... Bald Loco .. Baltj & Ohio. Ches & Ohlo.... Chi M1 & 8 P. Ch Rk 1 & P. Chile Cop Cub Cn Sug.... Emai - Johnson. Erle 1st ptd.... Gaston W & W.. Gt North pfd... Insp Cop Inter Con . .. Inter Con pfd... Int Mef Mar. ... Int Mr Mer pf... 455 Allla - Chal Mf. 34% Pacific Oil . Int Nickel .. Int Paper .. . Kelly Springfield . Kennecott Copper Lehigh Valley .... Mex Petroleum vale Steel . . Missouri Pacific .. N Y Central ..... Norfolk West .... North Pacific .... Peni RR .. Pierce Arrow . . Pittsburgh Coal .. Pressed Steel Car . ! Reading . Rep-I 8 . Royal D, N Y Sinclair Oil Refin . South Pacific . South Railway Studebaker Co Texas Co ... Texas Pacific Tob Prod Transcont Ofl . Uniem Pacific . United Retail St .. 53% U § Food Prod .. 12% U S’ Indus Alco .. 44% U S Rubber Co .. 48% U S Steel .... 8% Utah Copper 53 Willys Overtand .. 5% LOCAL STOCK MARKET TODAY (Furnished by Putnam & Co.) Bid Asked Hfd Elec Light ......134 138 Southern N> E Tel . 112 Am Brass ....... 200 Am Hardware 143 Billings & Spencer com 27 Bristol Brass . 15 Colt’s Arms 30 Bagle Lock . Landers .... N B Machine .. Niles-Be-Pond com North and Judd . Peck, Stow and Wilcox Russell 3 Co Scovill Co ... 35 45 47 early every operation in the mak- ig of pianos is by hand. Two million tons of newsprint aper ate used annually in the United States. SQUEEZED TO DEATH When the body begins to stiffen and movemient becomes painful it is usually an indication that the kidneys are out of order. Keep these organs healthy by taking CAPSULES t ae wofid’s standard remedy for kidney, iver, bladdes and uric acid troubles. Oils and | AUTOMOBILE ' INDUSTRY REACHING : STAGE OF AUCTION, SAYS BABSON Economic Expert Beliaves That This Would Help Stand- ard Cars With Reputation For Reliability. (By Roger W. Babson) “The automobile industry is enter- ing a new era. The first stage was when the demand for cars exceeded the supply and we could not buy auto- mobiles except for cash; the second stage was when the supply exceeded the demand and cars were sold on the installment plan and on time gener- ally; the third stage which we are now entering is when there is an active market for standard makes of cars with a “bid and asked" price reasona- bly near together. The reason that T say automobiles are now reaching this third stage is because of the auto- mobile auctions whch are beginning mobile auctions in the large cities. “Everyone remembers twenty years ago when most citles had their daily and weekly auction sales of horses. In some cities entire streets were given up to these auction sales to which the peoplé came for miles around. These sales existed because horses were a standard commodity, and all except fancy horses and thoroughbreds had their market prices, The horse that would normally be quoted at $250 would have a ready sale of $225 and would usually be priced at not more than $275. With automobiles this situation, .of course, has never existed. If a car had been run one day, there was a depreciation of about 20 per cent, the amount of the selling commission; while if it had been run a few thousand miles, the depreciation became much greater. There would often be a difference of a thousand dollars between the “bid and. the asked” price on a car that would be rated Tound $2000. This, of course, has tremendously added to the selliny costs and has been a great drag on the in- dustry. “With the introduction of auctions for both new and second hand cars, the price level will soon be stabilized with the result that excessive selling costs and many other costly features 'lof the automobile industry, will be eliminated. -To the -medium priced, honestly built, light cars, these suc- tions will be a great boom; although they may result in putting some other makes of cars out of business. In other words, the automobile auctions—Ilike the old horse auction—will be the acid WEEK’S REVIEW AND IMMEDIATE OUTLOOK Henry Clews, New York Financial Expert, Gives His Opinions + (Speetal to The Herald)™ New York, Oct. 22.—The threatened national railroad strike has been the overshadowing influence 'in the stock market practically throughout the week. Events have ‘shown that neither the prospect of the strike itself “nor the harm to be e pected from it are to be so seriously regarded as was at first thought. Hencé the influence of the strike threat as a market fac- tor has declined. President Harding's admiristration 1§ fmalitestly. doing all that it can to jprevent/ any such calamity from occurring and there is at least reason ta believe that a basis of adjustment cap be developed. Some Constructive Factors. Constructive influences, however, have not been wanting. The fact that the steel industry has continued to hold its own well in spite of / the strike outlook, and that there has been little affbarent influence upon the volume of orders has Pprevented quotations of stocks from undergoing any severe changes except in isolated instances. News that arrangements have been partly made for a 360,- 000,000 loan to Cuba has tended to strengthen the sugar situation cer- tainly in so far as relates to the shares of the Cuban companies. Definite announcement that the Am- erican Sugar Refining Company ex- pects to, pay its preferred dividend has set at rest the rumors that have been circulated with regard to the dividend ' situation of that company There has been an increasing ten- denty to improvement in the copver situation and still better conditions have developed in the textile manu- facturing, it being reported that the largest producer of ‘Woolens is now considerably more than 90 per cent active. One effect of the strike danger has been to encourage the steady movement of agricultural pro- ducts to market. While the result of this movement has been in some measure that of tending: to reduce prices in consequence of heavy of- ferings, the placing of available funds in the hands of producers has put them in position to make settle- ment with the banks and with mer- chandise concerns. This tends to ease the credit situation correspond. ingly. The Legislative Sitnation. With the German treaty disposed of, the senate is now in a position to devote itself to the tax bill and that measure bids fair to come to a vote before the end of the month, official forecasts placing the date of its adop- tion as early as the 26th. The tax bill continues to retain the 50 per cent maximum rate of surtax and the 15 per cent levy on the incomes of corporations. Both propositions are, however, under fire, and sentiment in the senate is so closely divided as to offer. a reasonable chance of further amendment before the final ballot, while the prospect of com- promise in iconference committee resulting in a . further reduction of the surtax rate with continued pos- sibility of a sales tax amendment, will leave the situation unsettled up to the close of the work ini eonfer: TCH ¥FOR THE '~ —SFOX"— ROGER A. I;ABSON_. test distinguishing the good cars from the poor cars, the comparies which spend most of their money on selling from the companies that spend most of their money on materials. “What does this mean to automobile securities? It should help the securi- ities of certain companies who are makng standard light car, to sell at a reasnable price. It will help companies which have established their reputa- tion for workmanship, accommodating local service and judicial advertising. A good. name “is more to be desired than great riches,” and this especially applies ‘to the automobile industry. The securities of companies having such a good name should distinctly benefit during this third stage which the automobile industry is entering. On the other hand, these auctions make it all the more impqgtant that investors should show great discrim- ination in purchasing the securities ot automobile companies. “General business is still dragging on the bottom. The Babsonchart of Business Conditions shows activity— 18 per cent below normal. ((All rights strictly reserved) ence. Meantime the adoption of the German treaty has tended to make foreign exchange, ‘especially the quotation of marks, rather more stable after the severe break from which they suffered a few days ago. The presence of an American repre- sentative on the Reparations Com- pression will give opportunity for making our views known in the Al- lted councils with a weight which could not kg had by the unofficial observer. who has heretofore been our representative at the sessions of this body. ‘X Credit and Investment Conditions. Further lquidation of credit and an increasingly large available sur- plus of ‘investment funds has resulted| ” from the gradual marketing. of farm products, accelerated as this has been by the fears 6f & “tieup” on the nm_1 roads. The outlook is seen in the im- proving .conditions under which money can be had for commercial pur- poses and the generally easier rate situatfon. Although the advance in bonds whieh has been so marked af feature of the investment butlook during “recent weeks has’ been: “ar-| rested by the strike news, there can| be np doubt that easy money rates will attract idle funds to the bond market for some time to come, particularly .as the income yields therefrom. are still most genoroufs. Difficulties in the marketing of the| equipment certificates owned by the government have grown out of the decision of the senate leaders to adopt the 50 per cent surtax rate, as Chaijrman Meyer of the War Finance corporation has shown, and this fact tends to improve the chances of an amendatory " provision which will re- duce the rate to a lower level. The weakest spot in the present credit situation is apparently still on the export side. Nevertheless the an- nouncement that some important South American markets are again opening as a result of disposal of the accumulated surpluses of goods which have cause: congestion for the last few montha tends to help the financing of new shipments in those directions. Market Review ad Outlook. As the week has advanced, owners of stocks have displayed less fear of the effect of railroad disturbance, be- lieving that their interests will be protected even' in the event- of a strike. Of course the prospect has not been favorable ecither to railroad securities themselves or to those of eduiptent companfés, . and ’should the rate increase granted last autumn be taken away without a correspond- ing decrease in wages the outlook would be far frem satisfactory. This situation, however, is still_ to be worked out. With respect” to the stock market, the least satisfactory phose of the present condition is the lack of outside =~ purchasing power which leaves short covering as prac- tically the only influence to sustain value. Fortunately the general pub- lic are not overburdened with stocks and as money is now asily obtainable there is nothing to suggest renewed liquida- tion on an extended scale. Later this will pave the way for another upward movement but is without special influence now. HENRY CLEWS. THE SIDE SADDLE COMING BACK It takes daring to leap the hurdles sitting securel horse. land. No, she didn’t fall. The Hartford-Connecticut Trust Company | Corner Main and Pearl Streets, Hartford Conn. Surplus Funds $2,000,000.00 Safe Deposit Boxes, $5 and upwards. Settlement of Estates, Wills drawn without charge Foreign Exchange to all parts of the world. LETTERS OF CREDIT — GENERAL BANKING Capital $1,250,000. Bank by mail. It is Quick Results And this year more and more society-horsewonien are re- turning to the less secure side-saddle. (nee Gladys Roosevelt) on “Forsythe” as she takes a high hurdle at the annual Meadowbrook Hunter show at Westbury, Long Is- Herald Classified Advts astride a Here Mrs. Fairman Dick safe and saves time. our customer: BOND DEPARTMENT Today’s Unusual Investment Those who have studiéd the bond market for years know that today’s offerings are unusual. The rate of return—based upon present price is unusually high. Present opportunities may never be duplicated. Ask us to mail you our list of exceptionally at- tractive bond offerings which we have investigated and purchased with our own funds before offering to S. A call in person will give you immediate facts on any issue in which you may be interested. Phone 138 or 139, The Commercial ‘Trust Co. Open Saturday Evenings 7-9 o’Clock: Member New York ftock Exchange Buccessor to Richter & Co. 31 WEST MAIN STREKT, NEW BRITAIN, CONN. STANLEY R. EDDY. Mgr. TEL. 2046 We Offer - 25 shares Landers, Frary & Clark 25 shares American Brass 25 shares American Hardware 25 sharesTraut & Hine, . T. SLOPEP CO. 28 WEST MAIN 5i., NEW BU1TALN, CONNECTICUT Investmnents. Local Stocks Telephones, 1815, 1816 — WE OFFER— Landers.Frary & Clark JOHN P. KEOGH Member Consolidated Stock Exchange of New York. STOCKS Middlerwm BONDS : Direct Private Wire to New York and Boston. G. F. GROFF, 2gr—Room 509, N. B. Nat] Bank Bldg. —Tel. 1013 lienn & o, HARYFORD 10 Ceatral Bow Telephone Charter 5008, Member Hartford Stock Exchange ‘Waterbury NBfldg.e.pm ew Haven Springfield Th 10m=oMn, NEW BRITAIN New Britain Nutional Bank Hldg. Telephone 2583 s DONALD R. HART Ng». « Member N. Y. Stock Eschange. We Offer : PECK STOW & WILCOX Price On Application. ‘We Do Not Accept Margin Accounts. MUV R I OR CANIZED 1860 WHAT OUR STRENGTH AND EXPERIENCE INSURE / The resources and experience of the New. Britain National Bank insure the faithful and efficient performance of every duty in the settlement of estates. ‘A wise appointment as your Executor or Trustee. NEw BRITAIN NATIONAL BANK 2 THE ONLY NATIONAL BANK IN THE CITY Ty Quick Results---Herald Classified Advts It is becoming more and more cus- tomary to select a strong, well man- aged Bank as the executor of your estate. ‘ EL] Have you ever given thought te the fact - that when circuimstances de- mand the closest economy in the handling of your estate the greatest care should be used ih selecting your executor. Our experience and training well qualifies us to act in that capacity. A conferenée with our trust officer costs nothing and will be considered in strictest confidence.